Gross profit for the second quarter of 2012 increased 33.8% from the second quarter of 2011 compared to the 32.5% increase in sales. Gross profit as a percentage of sales increased to 29.3% in the second quarter of 2012 compared to 29% for the second quarter of 2011. This increase is primarily the result of increased profit margins for the SPS and IPS segment.
Gross profit as a percentage of sales for the second quarter of 2012 increased to 29.3% from 28.3% for the first quarter of 2012 primarily as a result of improved margins in all three segments.
SG&A for the second quarter of 2012 increased $12.1 million or 27.8% from the second quarter of 2011, compared to the 32.5% sales increase. This increase is partially the result of the $8.7 million of SG&A expenses associated with the acquisitions completed in 2011 and 2012 on a same-store sales basis. As a percentage of sales, SG&A decreased to 21.3% from 22.1% for the second quarter of 2011. This decrease is primarily a result of economies of scale.
SG&A for the second quarter of 2012 increased $4.2 million or 8.2% from the first quarter of 2012. This increase is primarily the result of $2.9 million of SG&A expenses associated with the acquisitions completed in 2012 on a same-store sales basis. As a percentage of sales, SG&A increased to 21.3% from 20.4% for the first quarter of 2012, primarily as a result of increased health insurance claims, incentive compensation, travel, charitable donation and professional fees. We incurred approximately $800,000 of legal fees for acquisitions during the second quarter of 2012.During the third quarter, we will expense approximately $1.5 million of transaction cost associated with the acquisition of HSE. Interest expense for the second quarter of 2012 decreased 25.5% from the second quarter of 2011. This decline is the result of decreased rates on our credit facility. On July 23, 2011, we amended our credit facility. This amendment significantly decreased the interest rate and commitment fees applicable at various leverage ratios from levels in effect before July 23, 2011.Read the rest of this transcript for free on seekingalpha.com
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