HERNDON, VA -- Beacon Roofing Supply, Inc. reported a quarterly profit of $26.8 million, compared to net income of $27.2 million in 2013. Total sales increased 5.8% to a third quarter record $663.4 million in 2014 from $627.2 million in 2013. On an overall consolidated basis, residential roofing product sales increased 2.7%, non-residential roofing product sales increased 9.7%, and complementary product sales increased 6.4% over the prior year. During the third quarter, the Company had no branches classified as acquired markets and as such, consolidated sales are representative of existing market sales. In addition, the third quarters of 2014 and 2013 both had the same number of business days.
Paul Isabella, the Company's President and Chief Executive Officer, stated: "We delivered a solid 5.8% growth for the quarter, even in the face of continued soft residential roofing demand. Our diversified product offering allowed us to take advantage of the strength of the current commercial roofing market. In addition, our investment in new branch openings continues to fuel our growth. Approximately half of our growth in the quarter came from new branch openings and we expect these to add even more volume in the future. Although our gross margins improved slightly from the second quarter, they still are down from the prior year and continue to be our challenge. The soft residential market, coupled with heightened competition, has driven pricing down. Our gross margins this quarter also were unfavorably impacted by our increased percentage of commercial and direct ship business that typically have lower margins. We maintained our focus on cost control and managed our operating expenses to a flat percentage of sales with the prior year, even while investing almost $5 million in our new branches. We believe we are well positioned to capitalize on the high seasonal demand this time of the year, in addition to continuing to make the right investments to support our long term growth strategy."
Beacon Roofing Supply, Inc. is a leading distributor of roofing materials and complementary building products, with 254 branches in 40 states in the United States and six provinces in Canada as of June 30, 2014.