Goodman Global Holdings, Inc., a maker of HVAC equipment, announced fourth-quarter and year-end consolidated results for 2004. Affiliates of Apollo Management, L.P., together with management and members of the Goodman family, completed their acquisition of substantially all of the assets and liabilities of the company on Dec.23, 2004. Financial results for the quarter and year ended Dec. 31, 2004 are presented in the aggregate, whereas predecessor and successor company financial results have been combined.
Goodman reported fourth-quarter net sales of U.S. $283.5 million, a 5.4-percent increase compared to $268.9 million for the same period in 2003. For the year ended Dec. 31, 2004, net sales were $1,317.6 million, or 10.5 percent higher than $1,192.7 million for the year ended Dec. 31, 2003.
The company reported a net loss for the fourth quarter of 2004 of $63.1 million, compared to net income of $0.1 million for the same period last year. Net income for the year ended Dec. 31, 2004 was $47.7 million compared to net income of $87.4 million for the year ended Dec. 31, 2003.
The company said its net loss for the fourth quarter of 2004 and net income for the year ended Dec. 31, 2004 were both negatively impacted by $73.2 million of non-recurring transaction expenses. Excluding non-recurring transaction expenses, Goodman said net income for the fourth quarter of 2004 would have been $10.1 million and net income for the year ended Dec. 31, 2004 would have been $120.9 million.
For the full year ended Dec. 31, 2004, net sales increased 10.5 percent compared to 2003. Gross profit increased to $297.6 million, or 22.6 percent of net sales, for the year ended Dec. 31, 2004, compared to $277.4 million, or 23.3 percent of net sales, for 2003. The decrease in gross profit margin percentage was primarily a result of increased commodity costs, which were experienced industry-wide, Goodman said.
"Goodman ended a very successful 2004 on plan and with a strong fourth quarter," said Charles A. Carroll, president and CEO. "Our outstanding sales performance resulted in double-digit sales growth and enabled us to increase our unitary market share by nearly two full percentage points. Our independent distributors and company-owned channels experienced significant growth and momentum in 2004, and together we attracted a significant number of new contractors and residential builders to support our brands."
Mr. Carroll continued, "Despite rising commodity and freight costs, we were able to maintain attractive profitability by both capitalizing on these new customer wins and successfully implementing a price increase in September 2004. On January 5, 2005, we implemented a second price increase to further address the continuing commodity-costs headwind and maintain our profitability."
With the closing of the Apollo acquisition in December 2004, Mr. Carroll said Goodman is entering 2005 well-positioned to capitalize on opportunities in the marketplace. "We will continue to leverage our low-cost, market-leading position to deliver both quality products and service to our customers, as well as strong free cash flow and financial results," he said.
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