Beacon Roofing Supply Q4 Profit Down - Quick Facts

(RTTNews) - Beacon Roofing Supply, Inc. (BECN) said its fourth-quarter net income slid to $24.2 million from last year's $27.4 million, with income per share falling to $0.48 from $0.55 a year ago, mainly due to lower gross margins from reduced selling prices as a result of a soft demand environment, and a continued unfavorable shift in sales mix to lower margin direct shipment and commercial business.

However, total sales for the quarter increased 6.3% to $726.5 million from $683.6 million in 2013. On an overall consolidated basis, residential roofing product sales increased 5.1%, non-residential roofing product sales increased 4.9%, and complementary product sales increased 14.5% year-over-year.

Paul Isabella, the Company's President and Chief Executive Officer, stated: "Again this quarter we were able to demonstrate our focus on driving top line revenue growth with a 6.3% increase in sales. Almost two thirds of that growth was due to the success of our 26 new greenfields that we opened in the current year. In addition, we completed three acquisitions in August and October that, for next year, will add over $88 million to our revenue base. We continue to experience pressure on our gross margins which are down slightly from last quarter and from last year. The soft residential market, coupled with heightened competition, has continued to put pressure on our market pricing. We continue to invest heavily to grow the business through the opening of the new greenfield branches."