Beacon Roofing Supply Inc (BECN) Reports Record Top Line in Q3 2023
Beacon Roofing Supply Inc (NASDAQ:BECN) reports record top line driven by Ambition 2025 growth initiatives.
Company demonstrates strong third quarter profitability and substantial cash flow generation.
Net sales increased by 7.0% compared to the prior year, reaching $2.58 billion.
Company repurchased and retired all outstanding convertible preferred shares.
On November 2, 2023, Beacon Roofing Supply Inc (NASDAQ:BECN) announced its third quarter results for the period ended September 30, 2023. The company reported a record top line, driven by its Ambition 2025 strategic plan and the strength of its business model. The company's disciplined pricing, labor productivity, and working capital management led to record quarterly net sales, strong net income, and solid cash flow generation.
Financial Highlights
Beacon Roofing Supply Inc (NASDAQ:BECN) reported net sales of $2.58 billion, a 7.0% increase compared to the prior year. This increase was largely driven by the contributions of acquired branches and greenfields over the last four quarters. The company's gross profit stood at $672.6 million, while the operating expense was $418.8 million. The company reported a net income of $161.3 million.
Residential roofing product sales increased by 13.6%, non-residential roofing product sales decreased by 7.6%, and complementary product sales increased by 12.7% compared to the prior year. The company's gross margin decreased slightly to 26.0%, from 26.1% in the prior year, as higher product costs offset higher average selling prices for the company's products.
Share Repurchase and Investments
During the third quarter of 2023, Beacon Roofing Supply Inc (NASDAQ:BECN) repurchased all the outstanding preferred shares as well as approximately $25M worth of common shares, reducing the as-converted share count by more than 13%. The company has deployed a substantial amount of capital on growth projects and returns to shareholders so far in 2023, while remaining well within its target debt leverage range.
Outlook
As the company enters the fourth quarter, it is well-positioned to build on its momentum to deliver superior value to its customers, shareholders, employees, and communities and deliver on Ambition 2025. The company's strong third quarter results reflect its team's high caliber execution on its strategic plan and the power of its business model.
Beacon Roofing Supply Inc (NASDAQ:BECN) will host a conference call and webcast today at 5:00 p.m. ET to discuss these results. Interested parties can register for the conference call or webcast by visiting the Beacon Investor Relations Events & Presentations page.
Explore the complete 8-K earnings release (here) from Beacon Roofing Supply Inc for further details.
This article first appeared on GuruFocus.
