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Wednesday, October 12, 2005

ACRG

Here are all the recent press releases for ACRG. This one looks like a solid performer, we will be keeping a close watch.

ACR Group, Inc. Reports Earnings and Record Sales for Second Quarter Ended August 31, 2005

Income Rebounds Significantly From Previous Quarter
HOUSTON, Oct. 12 /PRNewswire-FirstCall/ -- ACR Group, Inc. (OTC Bulletin Board: ACRG), a leading wholesale distributor of air- conditioning, heating, and refrigeration equipment and supplies, today reported operating results and sales for six months and the quarter ended August 31, 2005, the second quarter of fiscal 2006.

Net income for the quarter ended August 31, 2005 was $1,856,000, or $.17 per share, compared to $2,065,000, or $.19 per share, for the quarter ended August 31, 2004. The Company continued to generate strong growth over the previous year except for its business units based in Georgia and Colorado. As previously reported, both sales and income at those business units have been reduced during the transition of their HVAC equipment brands. The decision to change brands at those units was made in order to distribute the Haier brand of equipment at all of the Company's business units, providing an opportunity for long-term growth.

Sales for the quarter ended August 31, 2005 were $61.1 million, which was a record for a single quarter and 3% greater than sales in the quarter ended August 31, 2004. Excluding the two business units that changed equipment brands, sales increased 25%, and same-store sales increased 18%, in the quarter ended August 31, 2005 compared to the same quarter in 2004.

Net income for the six-month period ended August 31, 2005 was $2,016,000, or $0.18 per share, compared to $3,194,000, or $0.30 per share, for the six- month period ended August 31, 2004. The decrease in earnings in 2005 is attributable to the decline in sales and income at the Georgia and Colorado business units.

For the six-month period ended August 31, 2005, the Company also reported sales of $108.7 million, a decrease of 1% from sales of $109.6 million for the six-month period ended August 31, 2004. Excluding the Georgia and Colorado business units, sales increased 21%, and same-store sales increased 16%, in the six-month period ended August 31, 2005 compared to the same six-month period in 2004. For the first eight months of calendar 2005, industry-wide product shipments increased 4% based on data compiled by a leading industry trade association.

Gross margin percentage on sales increased to 23.5% in the quarter ended August 31, 2005, and to 23.4% for the six-month period then ended, compared to 22.9% and 22.6%, respectively, for the same periods in 2004. The margin improvement in each measurement period resulted from Company's success in negotiating improved purchasing and payment terms with suppliers.

Commenting on the Company's second quarter and year-to-date results, Alex Trevino, Jr., President and Chief Executive Officer of ACR Group, stated, 'We are certainly pleased that our operating results rebounded so nicely from the first quarter of this fiscal year. Despite the difficulties experienced by our Georgia and Colorado business units in transitioning equipment brands, we established a quarterly sales record in the second quarter, and our net income was only 10% behind last year. As we have previously commented, we are not going to make up the lost business in Georgia and Colorado this year. However, we are continually regaining business and are still confident that the equipment brands that we have selected to replace the Goodman brand will enable these business units to compete effectively for the displaced customers. We believe that the remarkable growth experienced by our other business units will continue to help us offset much of the shortfall in Georgia and Colorado.'

About ACR Group, Inc.

ACR Group, Inc. is a wholesale distributor of air-conditioning, heating, and refrigeration ('HVACR') equipment and supplies. The Company owns and operates 48 branch locations that are organized into six business units covering nine states.

Statements in this news 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, and availability of capital.

(financial data to follow)



Three Months Ended Six Months Ended
August 31, August 31,
2005 2004 2005 2004

Sales $61,140 $59,538 $108,678 $109,583
Cost of sales 46,789 45,889 83,212 84,776

Gross profit 14,351 13,649 25,466 24,807

Selling, general and
administrative costs 11,238 10,134 21,741 19,381

Operating income 3,113 3,515 3,725 5,426

Interest expense 379 280 678 535
Interest derivative loss (gain) (43) 7 162 (23)
Other non-operating income (171) (171) (323) (313)

Income before income taxes 2,948 3,399 3,208 5,227

Provision for income taxes 1,092 1,334 1,192 2,033

Net income $1,856 $2,065 $2,016 $3,194

Earnings per share:
Basic and diluted $.17 $.19 $.18 $.30

Weighted average shares
outstanding:
Basic 10,977 10,681 10,958 10,681

Diluted 11,223 10,847 11,269 10,789

SOURCE ACR Group, Inc.



Knobias, Inc. Announces ACR Group Inc as the SPOT of the Week in Its Small-Cap ClipReport
RIDGELAND, Miss., Oct. 10, 2005 (PRIMEZONE) -- Knobias, Inc. (OTCBB:KNBS) announced today that it has selected ACR Group Inc (OTCBB:ACRG) as the SPOT of the week in the Knobias Small-Cap "ClipReport."

ACR Group, Inc, headquartered in Houston, is one of the nation's largest independent wholesale distributors of heating, ventilation, air conditioning and refrigeration (HVACR) equipment, parts and supplies. Customers include service and construction contractors. ACRG's growth has been accomplished through acquisitions and expansions. Since 1990, ACRG has acquired or started 7 additional HVACR distribution companies and now has 6 geographical business units with 48 branch operations in 9 states (CA, CO, FL, GA, LA, NV, NM, TN, TX). Because a large and diverse inventory base is an important element in company sales, ACRG stocks over 11,000 parts, supplies and equipment pieces, made by over 150 different manufacturers.

The Bulls say . . .

-- Strategic Transition Penalty: In Q405, ACRG decided to discontinue selling Goodman branded equipment in favor of a new distribution agreement with Haier brand HVAC equipment. Currently there are no competing distributors of Haier in ACRG's markets, unlike the competition faced as a Goodman distributor. As predicted in May, this long-term strategic decision has had a negative impact on early 2006 results. ACRG management is confident that this move gives the company great competitive advantages and "outstanding" long-term growth opportunities. Since the May release, ACRG has fallen -42% and may signal a value to those who believe the company will successfully transition inventory, educate customers and recapture market share over the next few quarters.

The Bears say . . .

-- Good Call? According to statements made by management, the decision to switch equipment suppliers in Q4 is meant to capitalize on long-term growth opportunities by making short-term sacrifices. Admittedly, fiscal 2006 financial results will be impacted by this move. This impact was evidenced in ACRG's July 15th Q1 financial report headline, ". . . Sales and Income Impacted By Change in Equipment Supplier". Expect continued pressure on the stock if more disappointments are announced due to this strategic decision.

The "ClipReport" is a daily newsletter distributed FREE to anyone interested in proprietary news and insight concerning small-, micro- and nano-cap stocks. Each week Knobias independently chooses one company to be highlighted in the SPOT. To qualify for selection, each company must: 1) trade on the Nasdaq National Market, Nasdaq Smallcap Market, Amex, OTCBB or Pink Sheets; 2) have a Market cap of less than $250 million; 3) have annual revenues greater than $1 million, 4) have a closing share price greater than 5 cents, and 5) have average daily volume of at least 10,000 shares. Knobias is never compensated for SPOT selections, and NO position will be held in SPOT stocks by Knobias, its management or staff while the stock is being highlighted.



ACR Group, Inc. Announces Increased Financing; Maturity Date Is Also Extended One Year
HOUSTON, Sept. 19 /PRNewswire-FirstCall/ -- ACR Group, Inc. (OTC Bulletin Board: ACRG), today announced that it has amended its financing arrangement with Wells Fargo Bank to increase to $35 million the amount that may be borrowed under the revolving credit line. In addition, the amendment extends the maturity date of the financing arrangement to August 31, 2007. All other terms of the financing arrangement were unchanged. The effective date of the amended agreement is August 31, 2005. As of August 31, 2005, the Company's collateral base was sufficient for the entire $35 million to be available to the Company.

Commenting on the amended financing arrangement, Alex Trevino, Jr., President and Chief Executive Officer of ACR Group, Inc., stated, 'The additional $5 million that is now available to the Company gives us significant flexibility to respond quickly to new business opportunities as they arise. The same-store growth rate at most of our business units continues to significantly outperform the industry, and we are continually seeking expansion opportunities. Wells Fargo Bank has again demonstrated its willingness to support the Company's growth by expanding our credit line.'



Tom Reno Appointed to Board of Directors of ACR Group, Inc.
HOUSTON, Aug. 23 /PRNewswire-FirstCall/ -- ACR Group, Inc. (OTC Bulletin Board: ACRG) today announced the appointment of Thomas J. Reno to the Company's Board of Directors.

Mr. Reno is President of Thomas J. Reno and Associates, Inc., a management consulting firm specializing in compensation and benefit consulting, which he founded in 2000. Prior to starting his own firm, he was a partner at KPMG in charge of the compensation and benefit consulting practice for Houston and the southwest region. He has over 30 years experience in human resources, benefits and compensation consulting. Mr. Reno is also active in several industry and civic organizations.

Alex Trevino, Jr., President and Chief Executive Officer of ACR Group, stated, 'Tom will be an immediate asset to our Board of Directors. His experience and interest in corporate governance will be invaluable as we address the requirements of Sarbanes-Oxley and structure the leadership of the Company to sustain future growth.'

About ACR Group, Inc.

ACR Group, Inc. is a wholesale distributor of air-conditioning, heating, and refrigeration ('HVACR') equipment and supplies. The Company owns and operates 6 business units and now has 48 locations in 9 states.

Statements in this news 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, and availability of capital.

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