Colonial Commercial Corp. reported sales of $16.2 million for the third quarter ended Sept. 30, up 43% from $11.3 million last year. These results included RAL Supply Group, which was acquired on Sept. 30, 2003, and American/Universal Supply, which was a new operation that commenced on or about July 1, 2003, and increased market penetration in the core business of Universal Supply Group, Colonial's major subsidiary.

Net income for the quarter was $839,082, including a net income tax benefit of $516,000 vs. net income of $325,659 in the 2003 quarter.

Gross margin dollars increased by $1.5 million over the 2003 period. Gross margins expressed as a percentage of sales increased from 28.5% in 2003 to 29.2% in 2004, primarily due to increases in sales of deluxe higher margin products, the company said.

For the nine months, revenues of $44.9 million were up 47.7% compared with $30.4 million in the 2003 period. Net income for the nine months was $1.2 million, including a net income tax benefit of $645,600, vs. $437,394 that included a net income tax benefit of $91,371 in last year's period.

Both the third quarter and nine-month results included non-cash charges for stock-based compensation, compared with no stock-based compensation charges in the 2003 period.

The company said it expects to be profitable for the year 2004 and exceed 2003 profits. Universal, RAL and American sell multiple heating, cooling, plumbing, indoor air quality and fireplace product lines to commercial and residential contractors. They operate out of 18 locations in New Jersey, New York and Pennsylvania.