Beacon Roofing Supply Reports $15 Million Profit on Record First Quarter Sales

HERNDON, VA -- Beacon Roofing Supply, Inc. said it earned $15 million in the first quarter of 2014, down from the $18.2 million profit the company posted during the same period in 2013. Net income for the quarter was unfavorably impacted by lower gross margins driven primarily by lower average selling prices for our residential and non-residential products and a higher mix of non-residential roofing products.

Total sales increased 7.5% to $552.1 million in 2014 from $513.7 million in 2013. Existing market (organic) sales, which exclude branches acquired after the beginning of last year's first quarter, increased 3.3% (the first quarter of 2013 and 2014 both had the same number of business days). In existing markets, residential roofing product sales increased 1.4%, non-residential roofing product sales increased 6.6%, and complementary product sales increased 1.0%.

Paul Isabella, the Company's President and Chief Executive Officer, stated: "We again achieved solid top line growth for the quarter. We started the quarter exceptionally strong, but ended the month of December on a soft note as a result of some very challenging weather conditions in our Northern regions. We were very pleased to see a strong rebound in commercial roofing this quarter as we continue to focus on diversifying our lines of business. In addition, we are seeing success with our new branch opening process and believe we will exceed our initial targets and may open as many as 25 branches in Fiscal 2014. A challenging pricing environment continued to drive down gross margins again this quarter, although our long standing culture of cost control was able to mitigate some of the negative impact through leverage of our operating expenses.

Total sales increased 7.5% to $552.1 million in 2014 from $513.7 million in 2013. Existing market (organic) sales, which exclude branches acquired after the beginning of last year's first quarter, increased 3.3% (the first quarter of 2013 and 2014 both had the same number of business days). In existing markets, residential roofing product sales increased 1.4%, non-residential roofing product sales increased 6.6%, and complementary product sales increased 1.0%.

Beacon Roofing Supply, Inc. is a leading distributor of roofing materials and complementary building products, currently operating 240 branches in 39 states in the United States and 6 provinces in Canada.

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Beacon Roofing Supply Reports $15 Million Profit on Record First Quarter Sales