AMPAM Reports Second Quarter Operating Results.Business Editors ROUND ROCK, Texas--(BUSINESS WIRE)--Aug. 13, 2001 American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Plumbing plumbing, piping systems inside buildings for water supply and sewage. The Romans had a highly developed plumbing system; water was brought to Rome by aqueducts and distributed to homes in lead pipes—hence the name plumbing from the Latin word plumbum & Mechanical Inc. ("AMPAM") today announced its operating results for the quarter and six-month period ended June June: see month. 30, 2001. Second Quarter Results Revenues in the second quarter increased 13% to $160.7 million, versus $141.7 million for the comparable quarter in 2000. The increase in revenues reflects $16.9 million from same-store growth and $2.1 million from startup (STARTing UP) "At startup" means when the computer is first turned on or when a program is first loaded. See Startup folder. locations. Gross profit for the quarter was $28.2 million, up 6% when compared to $26.5 million for the same period in 2000. The increase in gross profit reflects a 7% same-store increase, offset by a $0.3 million loss from startups. Gross margin for the quarter ended June 30, 2001, was 17.5%, an improvement over the 15.7% reported for the first quarter but less than the 18.7% reported during the same period in 2000. Excluding the impact of startups, gross margin for the quarter ended June 30, 2001, was 18%. This decline in gross margin is primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a more competitive market place and increased material costs. Selling, general and administrative expenses for the second quarter were $14.9 million (9.3% of revenues), versus $11.7 million (8.3% of revenues) for the comparable period in 2000. This increase is attributable to increased volume, higher health and business insurance costs and expenditures of $1.1 million on certain of the Company's previously announced strategic initiatives, primarily startups, branding and warranty An assurance, promise, or guaranty by one party that a particular statement of fact is true and may be relied upon by the other party. Warranties are used in a variety of commercial situations. In many instances a business may voluntarily make a warranty. programs. Goodwill amortization was $1.4 million for both periods. Income from operations was $11.9 million for the period, versus $13.4 million in the second quarter of 2000. Interest expense for the second quarter of 2001 was $4.7 million, up slightly from the $4.3 million recorded in the same period last year, and reflects increased levels of debt offset by lower interest rates. Both periods include approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $0.3 million of non-cash interest related to the amortization of debt offering expenses. At June 30, 2001, borrowings under the Company's bank credit agreement were $73.5 million. Net income available to common shareholders for the second quarter totaled $3.6 million versus $4.7 million for the same period in 2000. Certain strategic initiatives, including startups, reduced net income by approximately $1.4 million in the second quarter of 2001. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Commenting on the second quarter results, Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. Christianson Christianson, as a person, may refer to:
adj. Being between 10 and 99 percent: double-digit inflation. revenue growth and a solid $227 million backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. (excluding single family). Additionally, single-family sin·gle-fam·i·ly adj. Relating to or being a dwelling designed for one family only: a single-family home; single-family occupancy. plumbing starts for the quarter exceeded 10,000 -- a record for AMPAM." Six-Month Results Revenues for the six months ended June 30, 2001, increased 14% to $304.1 million, versus $266.8 million for the comparable period in 2000. The increase in revenues reflects $3.3 million from startup locations. Gross profit for the period was $50.7 million, up 4% when compared to $48.7 million in 2000. The increase in gross profit reflects $0.5 million in losses from startups. Gross margin for the six months ended June 30, 2001, was 16.7%, versus 18.2% for the same period in 2000. Excluding the impact of startups, gross margin for the six months ended June 30, 2001, was 17%. This decline in gross margin is primarily attributable to a more competitive market place and increased material costs. Selling, general and administrative expenses for the first six months of 2001 were $29.1 million (9.6% of revenues), versus $23.2 million (8.7% of revenues) for the comparable period in 2000. During the first six months of 2001, selling, general and administrative expenses included $2.2 million related to certain of the Company's strategic initiatives, primarily startups, branding and warranty programs. Net income available to common shareholders for the six months ended June 30, 2001, totaled $4.1 million versus $6.8 million for the same period in 2000. Certain strategic initiatives, including startups, reduced net income by approximately $2.7 million in the first half of 2001. EBITDA totaled $24.9 million for the period versus $28.5 million in 2000. 2001 Updated Guidance The following statements are based on the current expectations of the Company. These statements are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. and actual results may differ materially as described in the last paragraph below. David Baggett, president and chief financial officer, commented, "In the second half of 2001, we expect to continue to show revenue growth over last year. However, we anticipate continued margin pressures in this weak economy, and certain strategic initiatives, such as startups, to result in a decrease in earnings from last year." AMPAM continues to estimate 2001 revenues at approximately $610 million. EBITDA for fiscal 2001 is now estimated to be approximately $50 million. Free cash flows (defined as earnings plus depreciation less capital expenditures) should approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. $8 to $10 million. Capital expenditures should approximate $8 million. Headquartered in Round Rock, Texas, AMPAM is America's No. 1 choice for residential plumbing, heating and cooling. AMPAM also provides commercial plumbing and mechanical contracting services. AMPAM will host a conference call to discuss its results on Tuesday Tuesday: see week. , Aug. 14, at 9:00 a.m. Central Daylight For other uses, see Daylight (disambiguation). Daylight or the light of day is the combination of all direct and indirect sunlight outdoors during the daytime (and perhaps twilight). Time. To participate in the call, dial 800/406-5345 ten minutes before the call is scheduled to begin and use access code 642506. A replay will be available approximately two hours after the conference call is completed and will be accessible for one week. To access the replay, dial 888/203-1112 and use access code 642506. This news release contains "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. . Although AMPAM believes that such statements are based on reasonable assumptions, it can give no assurance that its expectations will in fact occur. Important factors that could cause actual results to differ materially from those in the forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. include, among other things, changes in national or regional economic conditions affecting the construction industry, our ability to integrate acquired businesses, federal and state regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. developments, AMPAM's financial leverage and the availability of skilled personnel, as well as other risk factors.
American Plumbing and Mechanical Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands)
Three months ended June 30,
--------------------------
2000 2001
--------- ---------
Revenues $ 141,679 $ 160,687
Cost of revenues
(including depreciation) 115,163 132,498
--------- ---------
Gross Profit 26,516 28,189
Selling, general and
administrative expenses 11,699 14,852
Goodwill amortization 1,446 1,411
--------- ---------
Income from operations 13,371 11,926
Interest expense (4,343) (4,686)
Other, net 194 253
--------- ---------
Income before taxes 9,222 7,493
Provision for income taxes 4,208 3,521
--------- ---------
Net income 5,014 3,972
--------- ---------
Preferred dividends 341 341
--------- ---------
Net income available
to common shareholders $ 4,673 $ 3,631
========= =========
EBITDA $ 16,295 $ 15,020
========= =========
Six months ended June 30,
--------------------------
2000 2001
--------- ---------
Revenues $ 266,816 $ 304,081
Cost of revenues
(including depreciation) 218,153 253,370
--------- ---------
Gross Profit 48,663 50,711
Selling, general and
administrative expenses 23,188 29,116
Goodwill amortization 2,746 2,822
--------- ---------
Income from operations 22,729 18,773
Interest expense (9,083) (9,412)
Other, net 407 424
--------- ---------
Income before taxes 14,053 9,785
Provision for income taxes 6,593 5,011
--------- ---------
Net income 7,460 4,774
--------- ---------
Preferred dividends 682 682
--------- ---------
Net income available
to common shareholders $ 6,778 $ 4,092
========= =========
EBITDA $ 28,508 $ 24,903
========= =========
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion