During the third quarters of 2013 and 2012, we reversed $2.8 million and $5.9 million, respectively, of the contractual earnouts related to CRTS. In each year, operating results were below the target amounts in the purchase agreement, mostly due to the Wasit project.
North American Water and Wastewater
|Quarters Ended September 30,||Increase (Decrease)|
|Gross profit margin||22.2||%||22.1||%||n/a||10bp|
|Nine Months Ended September 30,||Increase (Decrease)|
|Gross profit margin||21.3||%||21.1||%||n/a||20bp|
Third Quarter 2013 versus Third Quarter 2012
Our North American Water and Wastewater segment achieved a $4.0 million, or 64.2 percent, increase in operating income compared to the prior year quarter. The growth came from increased volume across all geographies, especially large diameter footage, which increased 105 percent compared to the prior year. The Canadian region also contributed because of a shift of work from the first half of 2013 where there was an abnormal amount of weather delays into the third quarter of 2013 and recent project awards in Eastern Canada. Operating margins improved 270 basis points from favorable project mix with large diameter work. We also have maintained our bidding discipline and have experienced increased success from our enhanced estimating and project management structure.