Group Reports Record Second Quarter Results
Demand and Operating Efficiencies Contribute
Single-Quarter Records In Revenue, Profitability
TX, Oct. 4, 2006
Group, Inc. (AMEX:
BRR), a leading
wholesale distributor of heating, ventilation and air conditioning (“HVAC”)
equipment and supplies, today announced record results for the second quarter
and six-month period ended August 31, 2006 (fiscal 2007), highlighted by
significant growth in revenue and net income.
reported total revenues of $76.1 million in its second quarter, a 24.5 percent
increase from revenues of $61.1 million in the year-ago period. Net
income for the quarter grew 81.2 percent to $3.4 million, or $0.29 per diluted
share, compared with net income of $1.8 million, or $0.17 per diluted share,
the second quarter of fiscal 2006.
six-month period ended August 31, 2006, ACR Group reported total revenues
$138.1 million, a 27.0 percent increase from revenues of $108.7 million in
comparable period last year. Net income for the six-month period grew 150
percent to $5.0 million, or $0.44 per diluted share, compared to net income
$2.0 million, or $0.18 per diluted share, in the year ago period.
year-over-year increase in revenue and profitability was attributable to
demand for the full range of products offered by the Company, including 13
HVAC equipment that complies with new federally mandated minimum efficiency
standards. Price increases on commodity-based products, continued demand
existing inventory of lower efficiency HVAC equipment and typical summer
patterns also helped bolster revenues and net income.
period of seasonally strong demand, the pre-season purchase of selected products
provided inventory availability that enabled us to serve our customers in
effective manner, contributing to broad-based operational strength in each
our business units”, said Alex Trevino, Jr., President and CEO of ACR Group.
“Demand remained strong during our fiscal second quarter in each of our major
markets, the bulk of which are situated throughout the Sunbelt region. As
expand our regional footprint into new growth markets such as Arizona, we
continue to target select regional platforms where our quality, competitively
priced brands and “one-stop-shop” service model have the potential to capture
significant market share.”
margin increased 268 basis points to 26.2 percent in the second quarter,
compared to 23.5 percent in the year-ago period. For the six-month period
August 31, 2006, the Company’s gross margin was 25.5 percent, compared to 23.4
percent for the same period last year. Disciplined point-of-sale pricing
lower-efficiency equipment and commodity products contributed to record gross
margins during the second quarter.