For the fourth quarter, sales increased $21.6 million, or 9.4%, to $250.8 million compared to $229.2 million for the fourth quarter of 2000. On a pro forma - fully taxed basis, net income for the fourth quarter increased $5.2 million, or 31.1%, versus the fourth quarter of 2000 to $21.9 million, or $0.37 per share. Pro-forma net income excludes a $1.6 million extraordinary item, net of tax, related to the fourth quarter restructuring of the company's debt facilities.

For the year, sales increased $76.6 million, or 8%, to $1 billion compared to $952.2 million in fiscal year 2000. On a pro forma - fully taxed basis, net income for the year increased $13.3 million, or 20.3%, over the prior year to $78.9 million, or $1.35 per share.

Sales increased across all product segments driven primarily by growth of the residential business. Sales through company-operated sales centers increased 9.5% versus last year, while American Olean distributor sales were up 5% and Home Center sales were up 3.9%. Gross margins declined 80 basis points due mainly to product mix and declining prices for floor tile. However, this decline was offset by reductions in selling, general and administrative expense and transportation cost.