Beacon Roofing Supply, Inc. (BECN) Misses Q1 EPS by 5c

February 7, 2014 8:04 AM
Beacon Roofing Supply, Inc. (NASDAQ: BECN) reported Q1 EPS of $0.30, $0.05 worse than the analyst estimate of $0.35. Revenue for the quarter came in at $552.1 million versus the consensus estimate of $573.2 million.

Paul Isabella, the Company’s President and Chief Executive Officer, stated: "We again achieved solid top line growth for the quarter. We started the quarter exceptionally strong, but ended the month of December on a soft note as a result of some very challenging weather conditions in our Northern regions. We were very pleased to see a strong rebound in commercial roofing this quarter as we continue to focus on diversifying our lines of business. In addition, we are seeing success with our new branch opening process and believe we will exceed our initial targets and may open as many as 25 branches in Fiscal 2014. A challenging pricing environment continued to drive down gross margins again this quarter, although our long standing culture of cost control was able to mitigate some of the negative impact through leverage of our operating expenses. Despite the challenges with pricing, we continued to generate solid cash flows from operations and fully repaid our revolving credit facility during the quarter. We believe market pricing will improve in 2014 as demand increases as we exit the winter months, and we intend to continue to leverage our operating expenses as we grow our revenue base."

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