PEABODY, MA -- Beacon Roofing Supply, Inc. said it earned $31.3 Million in its fourth quarter, on sales of $575.6 million--both records for the company. For the full year, the company generated record sales of $1.82 billion and net income of $59.2 million--an increase of 71.5% over 2010.
Paul Isabella, the Company's President and Chief Executive Officer, stated: "We had record fourth quarter and fiscal year results. Most of our regions achieved double-digit sales percentage increases in the fourth quarter and substantially exceeded our fourth-quarter and full-year sales and income expectations. Once again both our residential and non-residential product sales showed double-digit percentage increases for the quarter. Our complementary product sales were down only one percent. Our roofing businesses have benefited both from a pick-up in volume, including some storm business, and from industry-wide price increases mostly during the second half of the year.
Our commercial business has remained consistently strong throughout this year. We were able to use our strong financial position to increase inventories ahead of some vendor price increases, which enabled us to achieve gross margins that were significantly above last year's rates. We continued to exercise prudent expense controls to further improve our operating margin and our cash holdings have increased since last year even after this year's third-quarter purchase of Enercon Products. We continue to aggressively seek quality companies that fit our target acquisition profile, such as Denver-based Fowler & Peth acquired in the first quarter of fiscal 2012. We believe there are many favorable long-term growth factors in our industry, so we expect to continue expanding our geographic reach in 2012."
Total sales increased 19.3% to $575.6 million in 2011 from $482.6 million in 2010. Existing market (organic) sales, which exclude branches acquired after the beginning of last year's fourth quarter, increased 15.6%. In existing markets, residential and non-residential roofing product sales increased 25.7% and 10.8%, respectively, while complementary product sales declined only 1.0%. Our fourth quarter roofing sales this year were favorably impacted by higher average selling prices and by increased business in several markets that experienced significant spring hail storms.
Net income for the fourth quarter, which included a one-time income tax benefit of $5.1 million, was $31.3 million compared to $16.9 million in 2010, an improvement of 85.3%. This year's fourth-quarter net income, even prior to the tax benefit, represented a record for any prior quarter. Diluted net income per share was $0.67, including $0.11 per share for the one-time tax benefit, compared to $0.37 in 2010. The higher net income was due to the higher sales and gross margin rate, as well as lower interest expense, partially offset by the impact from higher operating expenses and a higher income tax provision (even after the tax benefit).