Record quarter for Beacon Roofing
Beacon Roofing Supply reported fourth quarter 2017 net sales increased 9.8% to a company record of $1.29 billion, up from $1.17 billion in the fourth quarter of 2016.
Residential roofing product sales increased 9.3% during the quarter, non-residential roofing product sales increased 5.3%, and complementary product sales increased 20.7% over the prior year.
Existing markets same day sales, excluding acquisitions, increased 8.2% for the quarter. The fourth quarter of Beacon Roofing’s fourth quarter in 2017 had 63 business days while the fourth quarter of 2016 had 64 business days.
For the full year, total sales increased 6% to an annual company record of $4.38 billion in 2017, from $4.13 billion in 2016. Residential roofing product sales increased 8.7%, non-residential roofing product sales decreased 4.4%, and complementary product sales increased 19.5% over the prior year. Existing market same day sales, excluding acquisitions, increased 3.4% year to date. Fiscal years 2017 and 2016 had 252 and 254 business days, the company reported.
For the fourth quarter, Beacon reported a net income of $45.1 million, compared to $47.4 million in the same period last year. In a press release, Beacon Roofing said that fourth quarter results were positively impacted by strong net sales growth within each of the company’s three product lines. But compared to the prior year, fiscal year 2017 operating performance was negatively impacted by lower gross margins and higher operating costs.
Net income for the full-year was $100.9 million, compared to $89.9 million in 2016. The commercial and residential roofing materials distributor said that compared to the prior year, fiscal year 2017 results were positively impacted by strong net sales growth within Beacon’s residential roofing and complementary product lines, partially offset by a net sales decrease in its non-residential roofing product line.
“Fiscal 2017 produced a second consecutive year of record sales,” said Paul Isabella, Beacon Roofing CEO and president. “We are pleased with our fourth quarter performance, and even more excited about the future, as monthly sales trends accelerated throughout the quarter and early 2018 visibility is supported by solid re-roofing trends and two meaningful storm events.”
Based in Herndon, Va., Beacon Roofing operates 382 locations in 48 U.S. states and 6 Canadian provinces. On Aug. 24, the company acquired Allied Building Products in a deal expected to close Jan. 2, 2018.
Armstrong sells off overseas businesses
Armstrong World Industries, the ceiling, wall, and suspension system manufacturer, is selling its EMEA and Pacific Rim businesses to Knauf International GmbH for $330 million.
After closing adjustments, fees, and taxes, Armstrong said the sale will net the company about $250 million in cash. The deal is expected to close in mid-2018, the Lancaster, Pa.-based company reported. Proceeds from the sale will be used to focus on its Americas business.
The sale includes the businesses of the Wave joint venture in EMEA and the Pacific Rim, as well as Armstrong France and Wave France. Armstrong forecasts that the EMEA and Pacific Rim businesses will have combined 2017 net sales of $425 million.
“While I was pleased with the recent progress that our EMEA and Pacific Rim teams were making, we ultimately concluded that industry consolidation in those markets is required to provide the scale and efficiencies necessary to achieve acceptable and sustainable returns," said Vic Grizzle, CEO of Armstrong World Industries.
“Our exit from EMEA and the Pacific Rim will be a step in an ongoing transformation plan that includes significant investment and innovation in high end mineral fiber manufacturing along with expanding capabilities in Architectural Specialties, all in the Americas where we already hold leading share positions and unrivaled capabilities,” Grizzle added.