Sales up, income down at Beacon
Peabody, Mass.-based Beacon Roofing Supply reported fourth-quarter sales of $683.5 million, up 14.3% compared with the same quarter last year.
In existing markets, residential roofing product sales increased 6.5%, non-residential roofing product sales increased 10.1%, and complementary product sales increased 5.0%.
“We experienced a solid increase in organic demand this quarter, which when combined with our acquisitions drove strong top-line growth of over 14%," said Paul Isabella, president and CEO. "We also completed the opening of seven new branches this quarter, taking us to the total of 10 that we had targeted for 2013. Plus, we are on track to open another 15 to 20 additional new branches in 2014."
Net income for the fourth quarter was $27.4 million compared with $27.9 million in 2012.
Full total sales increased 9.6% to a record $2.24 billion in 2013 from $2.04 billion in 2012. In existing markets, residential and complementary product sales increased 1.3% and 5.2%, respectively, while non-residential roofing product sales declined 0.4%.
Fiscal year 2012 sales were favorably impacted by mild weather in the first half of the year, coupled with significant storm business carryover from 2011. During the first half of fiscal year 2013, the company experienced an unfavorable weather impact from fewer storms and heavy rains in several regions.
Annual net income was $72.6 million in 2013, down 45 from $75.6 million in 2012.
"Top-line growth is one of the cornerstones of our strategy and is very much on track," Isabella said. "We continued to experience a challenging pricing environment, which drove down our gross margins from the prior year. We were able to mitigate some of this negative impact through cost control and leverage of our operating expenses, which were down 80 basis points over the prior year. As we move forward into 2014 our focus will continue to be on growing the top line, while improving our gross margins and continuing to leverage our operating expenses.”
Lumber Liquidators has its say in hedge fund debacle
Lumber Liquidators issued a statement in response to hedge fund manager Whitney Tilson, whose short position on the company caused shares to plummet nearly 12% on Friday.
Tilson made the announcement at the Robin Hood Investors Conference in New York on Friday, citing allegations surrounding the company’s sourcing practices that surfaced earlier this fall.
The company stated that it had not personally discussed these claims with Tilson, and it reaffirmed its denial of the allegations, according to the Wall Street Journal.
“Mr. Tilson’s presentation is based entirely on his own speculation and the contents of a report released almost two months ago, which we had previously stated contained numerous inaccuracies and unsubstantiated claims," said the statement. "We invest significant time and resources to safeguard quality control and compliance.”
According to the report in question, which was published by the Environmental Action Group, Lumber Liquidators has been knowingly sourcing wood from protected forests in Far East Russia, which is home to the endangered Siberian tiger.
GAF sets its sights on Parsippany headquarters
GAF has announced its plans to relocate its corporate headquarters to Parsippany, N.J. The move will transpire once renovations are completed on the company’s new building at 1 Campus Drive.
Approximately 600 employees and contractors currently working at the company’s headquarters in Wayne, N.J. will transfer to the new location.
“Our offices in Wayne, as well as this community, have been terrific for us for many years, and leaving here will be difficult,” said GAF president and CEO Bob Tafaro. “However, the building in Parsippany offers us a modern office with improved work efficiencies which will allow us to continue to improve our services to our customers while providing room for future growth.”
GAF’s headquarters has been stationed in Wayne for over 30 years. The future of the Wayne campus remains undecided.