Buoyed by acquisitions, Beacon Roofing Supply, Inc., Peabody, MA, fiscal 2006 second quarter sales were up 87.3% to $322.4 million from $172.1 million in the same period last year. The strong numbers reflect organic growth of 24.1%, with strong sales in all three major product lines: residential roofing, non-residential roofing and complementary building products.
Shelter Distribution, acquired in mid-October 2005, along with other companies acquired since second quarter 2005, contributed the remaining sales increase. The company also opened nine new branches since second quarter 2005.
Year-to-date (first-half) sales increased 78.4% to a record $662.3 million in 2006 from $371.3 million in 2005, reflecting internal growth of 19.1%, with strong sales in all three major product lines. The acquired companies contributed the remaining sales increase.
Beacon achieved record second-quarter net income of $4.8 million in 2006 compared to net income of $2.4 million in the same period in 2005, an increase of 97.5%. The Company has estimated an annual income tax rate of 40.5% for fiscal 2006 compared to the rate of 43.6% provided for in last year’s second quarter. The annual fiscal 2005 income tax rate was 40.0%.
The Company had first-half net income of $17.7 million in 2006 compared to net income of $11.2 million in 2005, an increase of 58.5%.
Cash flow from operations was $35.7 million in the first half of 2006 compared to $2.8 million in 2005. The Company used a portion of its 2006 cash from operations to increase inventories by $32.8 million, exclusive of the effects of businesses acquired, in anticipation of a continued strong sales growth rate.
Robert Buck, president and CEO, stated, “Historically, our second quarter has been our lowest sales quarter and we have typically incurred net losses. Although we believe our sales benefited somewhat from the milder East Coast weather and Gulf Coast rebuilding, each of our regions performed very well. In addition, our overall expense performance was encouraging. We continue to work on the integration of our recent acquisitions while we look for further opportunistic acquisitions such as the ones we completed in the second quarter.”
Beacon Roofing Supply, Inc. is a leading distributor of roofing materials and complementary building products operating 148 branches in 30 states and in Eastern Canada.
For more details on Beacon’s second quarter earnings, click here.