Group Reports Fourth Quarter and Fiscal 2007 Year-End
Record Year-End Revenue and Profitability
TX, May 14, 2007
Group, Inc. (AMEX: BRR), a leading national wholesale distributor of heating,
ventilation and air conditioning (“HVAC”) equipment and supplies, today
announced results for the fourth quarter and fiscal year 2007, highlighted
record results for the year-ended February 28, 2007.
2007, ACR Group reported the highest annual revenue, gross margin and net income
in the history of the Company.
year ended February 28, 2007, the Company reported total revenues of $239.6
million, a 17.3 percent increase from revenues of $204.3 million in fiscal
2007 net income grew 108.5 percent to $5.7 million, or $0.49 per diluted share,
compared to net income of $2.8 million, or $0.24 per diluted share, in fiscal
2006. Same-store sales, which excludes seven branches opened after fiscal 2005,
increased 13 percent in fiscal 2007.
factors contributed to ACR Group’s record year-end results, including: favorable
point-of-sale pricing; solid demand for higher-margin HVAC equipment that
complies with federally mandated minimum efficiency standards; the favorable
impact of commodity cost-related price increases; demand for the remaining
inventory of lower efficiency HVAC equipment within niche multi-family and
replacement markets; and broad-based demand for the full range of products
offered at the Company’s 54 branch locations. These factors enabled the Company
to increase gross margin by 180 basis points to 25.5% in fiscal 2007, from
in fiscal 2006.
fiscal 2007, we capitalized on a number of favorable industry trends, the sum
which contributed to broad-based strength within each of our five business
units,” said Alex Trevino, Jr., President and CEO of ACR Group. “As further
affirmation of our commitment to invest for future growth, we opened five new
branch locations during fiscal 2007, including three in Arizona - a
‘green-field’ market for the Company. As one of the largest independent
distributors in the highly fragmented HVAC distribution industry, we remain
poised to further penetrate high-growth markets, as compelling opportunities
profitable growth arise.”
2007 fourth quarter revenues of $45.6 million were essentially level compared
the year-ago period. ACR
reported a net loss for the quarter of $(226,000), or $(0.02) per fully diluted
share, compared with net income of $84,000, or $0.01 per diluted share, in
fourth quarter of fiscal 2006. While favorable point-of-sale pricing and
inventory management had a positive effect on gross margin during the quarter,
steady weakening in the residential new construction market had a
disproportionate impact on results in the period, amplified by the customary
seasonal slowing of the replacement business. As is typically expected during
the early stages of a new branch opening, ACR Group’s three Arizona branches
reported an aggregate operating loss during the period that reduced earnings
$.01 in the fiscal fourth quarter.
margin increased 210 basis points to 4.6 percent in fiscal 2007, compared to
percent in the prior-year period. Selling, general and administrative (SG&A)
expenses as a percentage of sales for all of fiscal 2007 declined 20 basis
points to 20.9 percent, compared with 21.1 percent in the prior fiscal year.
Excluding incentive compensation, same-store SG&A expenses grew five percent
in fiscal 2007 when compared to the prior fiscal year.
pleased with the significant margin expansion achieved during fiscal 2007,”
continued Trevino. “Gross profit increased by 26 percent in fiscal 2007 compared
to the prior fiscal year, while operating income more than doubled during the
same period. Disciplined expense control helped us to generate substantial
leverage within our operating model during the year. Our decentralized
large-branch strategy and ‘one-stop-shop’ approach continue to resonate with the
contractors we serve.”
Year 2007 | Year-End Financial Highlights
fiscal 2007, ACR Group reported the highest annual revenue, selling
and net income in the history of the
grew 17.3 percent to $239.6 million in fiscal 2007, compared to revenues
of $204.3 million in the prior
sales, which excludes seven branches open one year or less, increased
percent in fiscal 2007 when compared to fiscal
the fiscal year ended February 28, 2007, gross margin grew 180 basis
points to 25.5 percent, compared to gross margin of 23.7 percent
margin increased 210 basis points to 4.6 percent in fiscal 2007,
2.5 percent in fiscal 2006.
income more than doubled to $5.7 million in fiscal 2007, up from
million in fiscal 2006.
ACR Group, Inc.
nearly $240 million in revenue for the fiscal year ended February 28, 2007,
Group, Inc. (AMEX: BRR) is one of the largest independent distributors of
heating, ventilation and air conditioning (HVAC) equipment and supplies in
America. The Company is one of the leading distributors of HVAC products to
residential and commercial contractors at 54 branch locations throughout ten
states. The Company is committed to building a regional presence throughout
Sunbelt states and in other geographies with the potential for sustained
in this release that relate to management's expectations or beliefs concerning
future plans, expectations, events, and performance are "forward-looking" within
the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. Actual results
or events could differ materially from those anticipated in the forward-looking
statements due to a variety of factors including, without limitation, weather
conditions, the effects of competitive pricing, general economic conditions,
availability of capital. For more detailed information on the risks and
uncertainties associated with these forward-looking statements and the Company's
other activities, see the periodic reports filed by the Company with the
Securities and Exchange Commission such as Form 10-K, Form 10-Q and Form
Mr. Noel Ryan
Mr. Tony Maresca
Lambert, Edwards & Associates
Financial Officer, ACR Group, Inc.
The following information was filed by Acr Group Inc on Thursday, May 17, 2007 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.