PEABODY, MA -- Beacon Roofing Supply, Inc. posted a net loss of $0.2 million in the second quarter, on sales of $416.3 million. The company earned net income of $3.1 million in 2012 during the same period.
Paul Isabella, the Company's President & Chief Executive Officer, stated: "The second quarter of fiscal 2013 was challenging for us as we experienced harsh weather conditions in many of our markets and we were up against a very strong second quarter last year when our existing market sales were up 28%. Our total sales benefited from the positive impact of several acquisitions made since the start of last year and our gross margin continued to improve over the prior year. In addition, the trend of our residential roofing sales was more favorable in the second quarter compared to the first quarter. During the first half, we took advantage of our financial capacity and flexibility to purchase key products ahead of announced industry-wide price increases. We believe we are well positioned for a successful back half of fiscal 2013 and expect to experience a business rebound following the tough Winter and early Spring conditions."
The decline in net income was due to higher operating expenses, including acquired branch expenses, partially offset by the impact from higher gross profit and lower interest expense. The second quarter adjusted loss per share was $0.02 after consideration of the $1.3 million credit to interest expense ($0.8 million net of taxes) resulting from adjustments in the fair values of certain interest rate derivatives.
Beacon Roofing Supply, Inc. is a leading distributor of roofing materials and complementary building products, operating 229 branches in 38 states in the United States and across Canada.