Income Statement for Johnson & Sons Heating, Plumbing, & Air
As of December 31, 2024
| Account Description | 2024 Amount ($) | % of Revenue | 2023 Comparative ($) |
|---|---|---|---|
| CONTRACT REVENUE | |||
| Revenue by Service Line | |||
| HVAC Installation & Service | 41,310,000 | 60.0% | 39,120,000 |
| New Construction - HVAC | 37,179,000 | 54.0% | 35,208,000 |
| Service & Maintenance - HVAC | 4,131,000 | 6.0% | 3,912,000 |
| Plumbing Installation & Service | 27,540,000 | 40.0% | 26,080,000 |
| New Construction - Plumbing | 25,318,000 | 36.8% | 23,984,000 |
| Service & Maintenance - Plumbing | 2,222,000 | 3.2% | 2,096,000 |
| Revenue by Geography | |||
| Arizona Operations (Phoenix) | 34,425,000 | 50.0% | 32,600,000 |
| Utah Operations (Salt Lake City) | 20,655,000 | 30.0% | 19,560,000 |
| Colorado Operations (Denver) | 13,770,000 | 20.0% | 13,040,000 |
| Revenue by Customer Type | |||
| Commercial (Office, Retail) | 27,540,000 | 40.0% | 26,080,000 |
| Multifamily Residential | 20,655,000 | 30.0% | 19,560,000 |
| Industrial | 10,327,500 | 15.0% | 9,780,000 |
| Institutional (Healthcare, Education) | 10,327,500 | 15.0% | 9,780,000 |
| TOTAL CONTRACT REVENUE | 68,850,000 | 100.0% | 65,200,000 |
| COST OF CONTRACT REVENUE | |||
| Direct Materials | |||
| HVAC Equipment & Materials | 16,937,100 | 24.6% | 15,648,000 |
| Plumbing Materials & Fixtures | 11,291,400 | 16.4% | 10,432,000 |
| Total Direct Materials | 28,228,500 | 41.0% | 26,080,000 |
| Direct Labor | |||
| Field Technician Wages | 7,573,500 | 11.0% | 7,172,000 |
| Union Labor (60% of field) | 4,544,100 | 6.6% | 4,303,200 |
| Non-Union Labor (40% of field) | 3,029,400 | 4.4% | 2,868,800 |
| Field Labor Burden | 2,754,000 | 4.0% | 2,608,000 |
| Payroll Taxes & Workers Comp | 1,652,400 | 2.4% | 1,564,800 |
| Union Benefits & Pension | 826,200 | 1.2% | 782,400 |
| Field Insurance & Safety | 275,400 | 0.4% | 260,800 |
| Total Direct Labor | 10,327,500 | 15.0% | 9,780,000 |
| Subcontractor Costs | |||
| Specialty Subcontractors | 9,914,400 | 14.4% | 9,360,000 |
| Controls & Automation | 4,131,000 | 6.0% | 3,900,000 |
| Insulation & Sheet Metal | 3,304,800 | 4.8% | 3,120,000 |
| Testing & Balancing | 2,478,600 | 3.6% | 2,340,000 |
| General Subcontractors | 6,609,600 | 9.6% | 6,240,000 |
| Total Subcontractor Costs | 16,524,000 | 24.0% | 15,600,000 |
| Other Direct Costs | |||
| Equipment Rental & Small Tools | 1,377,000 | 2.0% | 1,304,000 |
| Job Site Supplies & Consumables | 688,500 | 1.0% | 652,000 |
| Freight & Delivery | 550,800 | 0.8% | 521,600 |
| Warranty & Callbacks Reserve | 413,100 | 0.6% | 391,200 |
| Project Bonding & Insurance | 275,400 | 0.4% | 260,800 |
| Total Other Direct Costs | 3,304,800 | 4.8% | 3,129,600 |
| TOTAL COST OF CONTRACT REVENUE | 58,385,300 | 84.8% | 54,589,600 |
| GROSS PROFIT | 10,464,700 | 15.2% | 10,610,400 |
| Reclassification Adjustment* | 3,305,300 | 4.8% | 3,089,600 |
| ADJUSTED GROSS PROFIT | 13,770,000 | 20.0% | 13,700,000 |
| OPERATING EXPENSES | |||
| Compensation & Benefits | |||
| Executive Management (5 persons) | 1,550,000 | 2.3% | 1,475,000 |
| Owner/Presidents (2) | 600,000 | 0.9% | 575,000 |
| General Manager | 350,000 | 0.5% | 335,000 |
| Regional Project Executives (3) | 600,000 | 0.9% | 565,000 |
| Middle Management (8 persons) | 800,000 | 1.2% | 760,000 |
| Project Management Staff (12 persons) | 750,000 | 1.1% | 710,000 |
| Administrative Staff (10 persons) | 500,000 | 0.7% | 475,000 |
| Estimating & Engineering (5 persons) | 400,000 | 0.6% | 380,000 |
| Employee Benefits & Burden | 750,000 | 1.1% | 710,000 |
| Total Compensation & Benefits | 4,750,000 | 6.9% | 4,510,000 |
| Facility & Equipment | |||
| Depreciation - Buildings & Improvements | 250,000 | 0.4% | 250,000 |
| Depreciation - Vehicles & Equipment | 600,000 | 0.9% | 580,000 |
| Facility Operating Costs | 450,000 | 0.7% | 425,000 |
| Phoenix Facility (40,000 sq ft) | 225,000 | 0.3% | 212,500 |
| Salt Lake City Facility (20,000 sq ft) | 135,000 | 0.2% | 127,500 |
| Denver Facility (15,000 sq ft) | 90,000 | 0.1% | 85,000 |
| Vehicle Fleet Expenses | 350,000 | 0.5% | 330,000 |
| Total Facility & Equipment | 1,650,000 | 2.4% | 1,585,000 |
| Insurance & Risk Management | |||
| General Liability Insurance | 480,000 | 0.7% | 456,000 |
| Professional Liability (E&O) | 240,000 | 0.3% | 228,000 |
| Auto/Fleet Insurance | 180,000 | 0.3% | 171,000 |
| Umbrella Policy | 150,000 | 0.2% | 142,500 |
| Directors & Officers | 150,000 | 0.2% | 142,500 |
| Total Insurance & Risk | 1,200,000 | 1.7% | 1,140,000 |
| Professional & Administrative | |||
| Technology & Software | 320,000 | 0.5% | 304,000 |
| Project Management Software | 120,000 | 0.2% | 114,000 |
| Accounting & ERP Systems | 80,000 | 0.1% | 76,000 |
| Other Software & IT | 120,000 | 0.2% | 114,000 |
| Professional Services | 280,000 | 0.4% | 266,000 |
| Legal Fees | 100,000 | 0.1% | 95,000 |
| Accounting & Tax | 120,000 | 0.2% | 114,000 |
| Other Professional | 60,000 | 0.1% | 57,000 |
| Licenses & Permits | 150,000 | 0.2% | 142,500 |
| Office & Administrative | 220,000 | 0.3% | 209,000 |
| Travel & Entertainment | 180,000 | 0.3% | 171,000 |
| Marketing & Business Development | 90,000 | 0.1% | 85,500 |
| Training & Education | 100,000 | 0.1% | 95,000 |
| Bad Debt Expense | 140,000 | 0.2% | 130,400 |
| Other Operating Expenses | 250,000 | 0.4% | 237,500 |
| Total Professional & Administrative | 1,460,000 | 2.1% | 1,385,400 |
| TOTAL OPERATING EXPENSES | 9,060,000 | 13.2% | 8,620,400 |
| EBITDA (Earnings Before Interest, Tax, Depreciation & Amortization) | 5,560,000 | 8.1% | 5,659,600 |
| ADJUSTMENTS FOR ADJUSTED EBITDA | |||
| Owner Compensation Normalization | 1,200,000 | 1.7% | 1,150,000 |
| One-time M&A Advisory Fees | 450,000 | 0.7% | - |
| Non-recurring Legal Settlements | 380,000 | 0.6% | - |
| Owner Personal Expenses | 350,000 | 0.5% | 340,000 |
| Excess Facility Rent (Related Party) | 300,000 | 0.4% | 290,000 |
| Non-arms Length Transactions | 300,000 | 0.4% | 285,000 |
| Total Normalization Adjustments | 2,980,000 | 4.3% | 2,065,000 |
| ADJUSTED EBITDA | 8,540,000 | 12.4% | 7,724,600 |
| Depreciation & Amortization | (850,000) | (1.2%) | (830,000) |
| ADJUSTED EBIT | 7,690,000 | 11.2% | 6,894,600 |
| OTHER INCOME (EXPENSES) | |||
| Interest Expense - Line of Credit | (275,000) | (0.4%) | (245,000) |
| Interest Expense - Equipment Loans | (112,500) | (0.2%) | (120,000) |
| Interest Expense - Mortgages | (72,500) | (0.1%) | (75,000) |
| Other Income | - | 0.0% | 15,000 |
| Total Other Expenses | (460,000) | (0.7%) | (425,000) |
| INCOME BEFORE INCOME TAXES | 7,230,000 | 10.5% | 6,469,600 |
| INCOME TAX PROVISION | |||
| Federal Income Tax (S-Corp @ 21%) | 1,518,300 | 2.2% | 1,358,616 |
| State Income Tax - Multi-State | 561,700 | 0.8% | 502,404 |
| Arizona (5.05%) | 182,508 | 0.3% | 163,278 |
| Utah (4.65%) | 201,116 | 0.3% | 179,886 |
| Colorado (4.40%) | 178,076 | 0.3% | 159,240 |
| Total Income Tax Expense | 2,080,000 | 3.0% | 1,861,020 |
| NET INCOME | 5,150,000 | 7.5% | 4,608,580 |