ROUND ROCK, TEXAS — American Plumbing & Mechanical in late March announced its operating results for the fiscal year and quarter ended Dec. 31, 2001.
Revenues for the 12 months ended Dec. 31 increased 9% to $606.2 million, vs. $557.9 million for the comparable period in 2000. Revenues from start-ups were $21.7 million, vs. $3.5 million in 2000.
Gross profit for the year was $100.4 million, up 2% when compared to $98.5 million in 2000. The increase in gross profit reflects higher volume and start-up increases of $1.6 million offset by decreased margins. Gross margin for the year ended Dec. 31 was 16.6%, vs. 17.6% in 2000. This decline in gross margin is primarily attributable to a more competitive marketplace and higher material costs.
General and administrative expenses for 2001 were $61.1 million (10% of revenues), vs. $46.4 million (8% of revenues) in 2000. The increase in SG&A expenses was primarily due to higher health and business insurance costs of $7.6 million and increased volume.
Income from operations was $33.7 million in 2001, vs. $46.4 million in 2000.
As of Dec. 31 AMPAM recorded a backlog of $232 million, which is basically unchanged from the end of the third quarter 2001. In both periods, the backlog relates only to the company’s multifamily residential and commercial lines of business. Capital expenditures totaled $9.2 million vs. $7.9 million in 2000.
Revenues in the fourth quarter decreased 1% to $144.5 million, vs. $145.6 million for the comparable quarter in 2000, and include an increase of $8.6 million attributable to start-ups. During the fourth quarter of 2001, the weakening economy affected revenues in certain markets, most notably in its commercial line of business, which was down $5.7 million (excluding start-ups) when compared to the same period the year earlier.
Gross profit for the quarter was $23.5 million vs. $23.3 million for the comparable period in 2000. Gross margins for the quarter ended Dec. 31 were 16.3%, vs. 16% during the same period in 2000.
Selling, general and administrative expenses for the fourth quarter were $16.2 million (11% of revenues), vs. $11.8 million (8% of revenues) for the comparable period in 2000. The increase was attributable to higher health and business insurance costs of $1.6 million and increased expenditures of $1.5 million on certain strategic initiatives, including start-ups, branding and warranty programs.
Income from operations was $5.8 million for the period, vs. $10 million in the fourth quarter of 2000.