Beacon Roofing Supply,Inc. (BECN) has reported an 187.02 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $20.43 million, or $0.33 a share in the quarter, compared with $7.12 million, or $0.12 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $26.97 million, or $0.44 a share compared with $24.68 million or $0.41 a share, a year ago.
Revenue during the quarter went up marginally by 2.63 percent to $1,002.18 million from $976.48 million in the previous year period. Gross margin for the quarter expanded 117 basis points over the previous year period to 25.05 percent. Total expenses were 95.31 percent of quarterly revenues, down from 97.25 percent for the same period last year. This has led to an improvement of 194 basis points in operating margin to 4.69 percent.
Operating income for the quarter was $46.96 million, compared with $26.84 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $80.02 million compared with $73.40 million in the prior year period. At the same time, adjusted EBITDA margin improved 47 basis points in the quarter to 7.98 percent from 7.52 percent in the last year period.
Paul Isabella, the Company's president and chief executive officer, stated: "Fiscal 2017 is off to a solid start with a third consecutive quarter of sales greater than $1 billion. Our residential roofing business delivered 6.5% daily sales growth in existing markets, representing the 11th consecutive quarter in which we demonstrated year-over-year improvement. Gross margin remains robust, exceeding 25%, a 117 basis point improvement over last year. This increase results from a product mix shift as well as our pricing discipline and initiatives. More normalized weather conditions have made for challenging sales comparisons to last year’s mild fall and winter, but should provide benefit in the latter half of the year."
Operating cash flow improves significantly
Beacon Roofing Supply,Inc. has generated cash of $78.12 million from operating activities during the quarter, up 74.87 percent or $33.45 million, when compared with the last year period.
The company has spent $8.73 million cash to meet investing activities during the quarter as against cash outgo of $943.08 million in the last year period. It has incurred capital expenditure of $6.88 million on net basis during the quarter, up 257.59 percent or $4.96 million from year ago period.
The company has spent $27.70 million cash to carry out financing activities during the quarter as against cash inflow of $885.30 million in the last year period.
Cash and cash equivalents stood at $73.27 million as on Dec. 31, 2016, up 127.48 percent or $41.06 million from $32.21 million on Dec. 31, 2015.
Debt comes down marginally
Beacon Roofing Supply,Inc. has recorded a decline in total debt over the last one year. It stood at $1,102.72 million as on Dec. 31, 2016, down 1.87 percent or $21 million from $1,123.72 million on Dec. 31, 2015. Total debt was 35.66 percent of total assets as on Dec. 31, 2016, compared with 37.88 percent on Dec. 31, 2015. Debt to equity ratio was at 0.82 as on Dec. 31, 2016, down from 0.93 as on Dec. 31, 2015. Interest coverage ratio improved to 3.46 for the quarter from 1.65 for the same period last year.
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