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Management Discussion

• Consolidated revenues for the three months ended March 31, 2021, were $40.7 million higher than for the three months ended March 31, 2020, an increase of 14.0%, with increases at our Residential and Infrastructure Solutions segments driven by strong demand and the contribution of businesses acquired subsequent to the second quarter of 2020. Revenues decreased at our Commercial & Industrial segment, where many of our markets remain highly competitive and have been more highly affected by COVID-19. Revenues also decreased slightly at our Communications segment.
• Consolidated gross profit for the three months ended March 31, 2021 increased $13.6 million compared to the three months ended March 31, 2020. Our overall gross profit percentage increased to 19.5% during the three months ended March 31, 2021, as compared to 17.6% during the three months ended March 31, 2020. Gross profit as a percentage of revenue increased at our Communications, Infrastructure Solutions, and Commercial & Industrial segments, while decreasing at our Residential segment. See further discussion below of changes in gross margin for our individual segments.
• Selling, general and administrative expenses include costs not directly associated with performing work for our customers. These costs consist primarily of compensation and benefits related to corporate, segment and branch management (including incentive-based compensation), occupancy and utilities, training, professional services, information technology costs, consulting fees, travel and certain types of depreciation and amortization. We allocate certain corporate selling, general and administrative costs across our segments as we believe this more accurately reflects the costs associated with operating each segment.