Construction and building materials distributor Beacon announced its ninth acquisition of the year, as well as its 2023 third quarter earnings.
Beacon said it has completed its acquisition of Bakersfield, California-based H&H Roofing Supply, LLC. Financial details were not disclosed.
“Joining forces with Beacon is a great fit for our contractors and employees,” said Scott Hill, owner of H&H Roofing. “Contractors will continue to have a partner with relentless focus on customer service as well as benefit from the Beacon’s PRO+ app and TRI-BUILT private label products.”
Beacon has expanded its branch footprint through the completion of nine acquisitions and the opening of 19 new greenfield locations this year.
“We are thrilled to deepen our presence in the Central Valley and add Bakersfield to our service area in California where we now have 33 branches,” said Nevin Holly, Beacon’s Regional Vice President, Pacific. “Scott and the H&H Roofing team have established a tremendous foundation of roofing expertise and service reliability to drive further growth.”
3Q Sales Grow 7%
Beacon also announced its 2023 3Q earnings, which showed net sales increased 7.0% (8.7% on a per-day basis) compared to the prior year to $2.58 billion, a company record for quarterly net sales. The increase in net sales was largely driven by the contributions of acquired branches and greenfields over the last four quarters. Additionally, estimated organic volumes (including greenfields) increased approximately 1-2% (3-4% on a per-day basis) and weighted-average selling price increased approximately 0-1%.
Residential roofing product sales increased 13.6% (15.4% on a per-day basis), non-residential roofing product sales decreased 7.6% (6.2% on a per-day basis), and complementary product sales increased 12.7% (14.5% on a per-day basis) compared to the prior year. The increase in residential roofing product sales was primarily due to higher volumes. The increase in complementary product sales was largely due to the November 2022 acquisition of Coastal Construction Products.
Gross margin decreased slightly to 26.0%, from 26.1% in the prior year, as higher product costs offset higher average selling prices for our products. The increases in operating expense and Adjusted Operating Expense were attributable to acquired branches and greenfields, Beacon said.