Industrial Distribution Group, Inc. Atlanta, GA, reported sales of $547.9 million in 2006, up 2.9% on an organic basis. Profit was $6.8 million for 2006, compared with $5.4 million in 2005.
Revenue for the fourth quarter 2006 was $131.6 million, a 1.1% increase from $130.1 million in 2005. Profit for the fourth quarter of 2006 was $1.9 million compared with the 2005 profit of $1.5 million.
For the fourth quarter 2006, revenue from the Flexible Procurement Solutions(tm) (FPS) services, including storeroom management, was $80.5 million, or 61.2% of total revenue compared to $74.91 million, or 57.6% of total revenue in the prior-year period, reflecting a growth rate of 7.5%.
Total FPS revenue in 2006 was $325.3 million, an increase of 7.8% from the prior year, and grew to 59.4% of total revenues for the year compared to 56% of total 2005 revenues. The company finished the year with 352 FPS sites, which included 101 storeroom management sites that accounted for $245.9 million of FPS revenue for 2006.
During 2006, we made excellent progress on our One Company initiative, laying the important operational foundation for a unified and integrated IDG through our newly implemented IT system,” said President and CEO Charles Lingenfelter. “We also made great strides in other initiatives, including creating one sales, implementation and operations team for our FPS services. We established new organizations in a number of operating areas, including marketing and sales, and recruited associates to fill these critical roles.
“We began the development of a strategic pricing initiative that we believe will be the cornerstone for improved pricing and margin expansion in the future. We strengthened our leadership team and focused important time and resources to improve underperforming operations.”