Beacon Roofing Supply Reports Third Quarter 2012 Results

PEABODY, Mass.--(BUSINESS WIRE)--Reissuing release to add ticker symbol for searching purposes.

The release reads:

BEACON ROOFING SUPPLY REPORTS THIRD QUARTER 2012 RESULTS

Beacon Roofing Supply, Inc. (the Company) (NASDAQ: BECN) announced results today for its third quarter and nine months ended June 30, 2012 of the fiscal year ending September 30, 2012 (fiscal 2012).

Paul Isabella, the Companys President & Chief Executive Officer, stated: We are very pleased with our record quarter and year-to-date results, which, after adjusting for special charges, significantly exceeded our expectations once again. Most of our regions are having an exceptional year. Our total sales have benefited from the positive impact from acquisitions, while our sales in existing markets for the third quarter fell only 1.5%. Sales in our existing markets were up against a very strong 11.6% increase in last years third quarter, when there was substantial roofing activities beginning in June from the Spring 2011 hail storms. In addition, the much warmer winter conditions this year brought some roofing and exterior remodeling activities into our second quarter that would have otherwise been performed in our third quarter. Year-over-year price increases in our industry flattened in the third quarter but average selling prices were still slightly higher than last year. Our gross margin and operating margin continued to improve. Our new credit facility and strong balance sheet are enabling us to accelerate our growth, as we did with our most recent acquisitions of Structural Materials Company in Southern California in early July and Contractors Roofing & Supply Co. in St. Louis last week. We are confident that we will add other quality companies in the near future that fit our target acquisition profile. Although we will be up against tough comparisons again in the fourth quarter, we expect a solid finish to fiscal 2012.

Third Quarter

Total sales increased 3.7% to $560.5 million in 2012 from $540.7 million in 2011. Existing market (organic) sales, which exclude branches acquired after the beginning of last years third quarter, declined 1.5%. In existing markets, residential roofing product sales increased 1.7%, while non-residential roofing and complementary product sales decreased 4.9% and 3.0%, respectively. This years third quarter sales were primarily impacted by lower non-residential roofing activity and less residential roofing activity in the markets affected by last Springs hail storms, partially offset by the benefit of higher average selling prices.

Net income for the third quarter was $25.4 million compared to $24.1 million in 2011. Third quarter diluted net income per share was a record $0.53 compared to $0.51 in 2011. The higher net income was due to the higher sales and gross margin rate, partially offset by the impact from certain charges, higher operating expenses and a higher income tax provision compared to 2011. Earnings in the third quarter of fiscal 2012 were impacted by the following charges: $4.9 million ($3.0 million net of tax), or approximately $0.06 diluted earnings per share, for the recognition of the fair value of certain interest rate derivatives and other charge in interest expense and other financing costs resulting from the Companys refinancing in April 2012; and $1.3 million, or approximately $0.03 diluted earnings per share, from the increase in the liability for consideration due for the Enercon acquisition.

Earnings before interest, taxes, depreciation and amortization, and stock-based compensation (Adjusted EBITDA), which are reconciled to the net income in this press release, were $60.2 million in 2012 compared to $50.8 million in 2011, an 18.4% increase.

Nine Months

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Beacon Roofing Supply Reports Third Quarter 2012 Results