Beacon Roofing Supply, Inc. (the “Company”) (NASDAQ: BECN) announced results today for its fiscal 2011 third quarter and nine months ended June 30, 2011.
Paul Isabella, the Company’s President & Chief Executive Officer, stated: “We had a record third quarter, with most of our regions achieving strong year-over-year results and beating our expectations. Both our residential and non-residential product sales showed double-digit percentage increases, while our complementary product sales were up against business that was favorably impacted by short-term tax incentives last year. Our roofing businesses benefited from a pick-up in volume during the quarter, including some hail storm business, and from industry-wide price increases, although our commercial business has remained consistently strong throughout this year. We were able to use our strong financial position to increase inventories ahead of some vendor price increases, which enabled us to achieve more normal gross margins that were significantly above last year’s low rates. We also were able to leverage our expenses to further improve our operating margin. Our cash holdings have increased since last year’s third quarter despite two acquisitions made since that time, including the purchase of Enercon Products completed during this year’s third quarter. We believe our fourth quarter will remain strong, and we continue to pursue growth opportunities while we focus on maximizing current profitability.”
Total sales increased 14.0% to $540.7 million in 2011, a record for a third quarter, from $474.3 million in 2010. Existing market (organic) sales increased 11.6%. Existing market results exclude branches acquired after the beginning of last year’s third quarter. In existing markets, residential and non-residential roofing product sales increased 14.6% and 15.4%, respectively, while complementary product sales decreased 6.6% due, in part, to lower remodeling activity resulting from the expiration of last year’s short-term tax incentives. Our third quarter roofing sales this year were favorably impacted by higher average selling prices and business in several markets that experienced significant spring hail storms.
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