Ray; [HSOA] selling off temp on great results.
Third Quarter 2006 Consolidated Results
* Revenues from continuing operations for the third quarter grew to a
record $49.1 million, up 103% from the second quarter 2006 revenues of
$24.2 million and up 159% from $19.0 million for the third quarter of
2005.
* Third quarter 2006 net income increased 243% to a record $8.1 million,
or $0.18 per diluted share compared to $2.4 million, or $0.08 per
diluted share, in the same quarter last year.
* Third quarter 2006 EBITDA increased 239% to $13.8 million (including
$13.3 million of operating income and $.5 million of depreciation and
amortization), compared to $4.1 million (including $3.8 million of
operating income and $.3 million of depreciation and amortization) in
the 2005 third quarter.
* Third quarter gross margin was 42.8% compared to 45.2% in the same
quarter of 2005 and compared to 47.1% in the second quarter 2006. The
change in gross margin reflects the Company's anticipated smoothing of
overall margins in the restoration business.
* As of September 30, 2006, the Company reported $5.7 million in cash,
and debt of $46.8 million, including the $21.5 million seller note
associated with the Fireline acquisition. The Company recently
announced an increased credit facility of up to $60 million to
accommodate the Company's growth and lower its cost of capital.
* The Recovery/Restoration Services segment generated a 277% increase in
revenue to $39.8 million. Gross profit increased 216% to $17.8 million
over the prior year same three-month period. This increase is due to
the ongoing increase of reconstruction under the Company's contracts.
Work in this segment includes fully integrated activity by the
Company's historic businesses plus the acquisition of Fireline
Restoration. The Company also recently announced the acquisition of
Associated Contractors II, LLC in October 2006 furthering the
Company's ability to compete for additional contracts in the Gulf
Coast region.
* Revenues from continuing operations in the Rebuilding/Remodeling
business segment for the third quarter of 2006 increased 10.3% to
$9.3 million. Gross profit increased 8.2% to $3.2 million from the
prior year same period.
* Accounts receivable (net of reserve) increased to $61.4 million,
including the Fireline acquired accounts receivable of $24.2 (net of
reserve). The growth correlates to the increased revenues in the quarter
Allan |
