HERNDON, Va. - Beacon Roofing Supply, Inc. (NASDAQ:BECN), a leading distributor of roofing materials and complementary building products, announced its fourth quarter financial results, which showed a miss on earnings per share (EPS) but a record in net sales.
The company reported a Q4 EPS of $1.47, which was $0.21 lower than the analyst consensus of $1.68. However, Beacon's revenue for the quarter reached $2.3 billion, surpassing the consensus estimate of $2.27 billion.
The company's net sales for the fourth quarter increased by 16.8% compared to the same period last year, driven by organic volume growth, including greenfield over the last four quarters. Residential roofing product sales rose by 20.2%, non-residential roofing product sales by 11.4%, and complementary product sales by 16%.
Despite these increases, gross margin for the quarter experienced a slight decline to 25.7% from 26.2% in the previous year, attributed to higher product costs which offset the higher average selling prices.
Beacon's President and CEO, Julian Francis, commented on the results, "Our 2023 results demonstrate that our Ambition 2025 strategy has multiple paths to growth and can deliver results in a variety of conditions. We delivered record fourth quarter and full year sales, strong net income, and our highest Adjusted EBITDA in history." He also highlighted the company's focus on pricing, operating efficiency, and working capital management.
For the full year ended December 31, 2023, Beacon Roofing Supply reported an 8.2% increase in net sales to a record $9.12 billion. The company's net income for the year was $435.0 million, with an Adjusted EBITDA of $929.6 million, marking an increase from the previous year's $910.0 million.
Beacon's management remains confident in their business model, as evidenced by their strategic acquisitions and greenfield investments, which have contributed to their growth. The company's balance sheet strength was maintained, with net debt leverage at 2.4 times as of year-end.
While the Q4 EPS did not meet analyst expectations, the record net sales and growth in key product categories reflect the company's resilience and successful execution of its growth strategy. Beacon's stock performance in response to the earnings release was not provided.
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