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In addition to the significant assumptions detailed above, refer to "Risk Factors to Superior" for a detailed review of the significant business risks affecting Superior's Specialty Chemicals' segment.
Construction Products DistributionConstruction Products Distribution's condensed operating results for 2012and 2011;---------------------------------------------------------------------------- Three months ended Twelve months ended December 31, December 31,(millions of dollars) 2012 2011 2012 2011----------------------------------------------------------------------------Revenue Gypsum Specialty Distribution (GSD) revenue 130.6 115.6 526.1 479.9 Commercial and Industrial Insulation (C&I) revenue 62.6 62.5 252.8 231.9Cost of sales GSD cost of sales (99.5) (85.2) (408.6) (367.7) C&I cost of sales (46.1) (45.2) (186.4) (169.4)----------------------------------------------------------------------------Gross profit 47.6 47.7 183.9 174.7Less: Cash operating and administrative costs (39.8) (40.8) (163.1) (150.5)----------------------------------------------------------------------------EBITDA from operations 7.8 6.9 20.8 24.2--------------------------------------------------------------------------------------------------------------------------------------------------------(1) In order to better reflect the results of its operations, Superior has reclassified certain amounts for purposes of this Financial Discussion to present its results as if it had accounted for various transactions as accounting hedges. See "Reconciliation of Divisional Segmented Revenue, Cost of Sales and Cash Operating and Administrative Costs Included in this Financial Discussion" for detailed amounts.
GSD and C&I revenues of $193.2 million for the fourth quarter of 2012 were $15.1 million or 8% higher than in the prior year quarter. GSD revenue increased due to higher demand, new product introductions and sales volumes in some Canadian and U.S. based regions and from the continued expansion of the GSD product line into existing U.S. based branches. C&I revenues increased slightly from the prior year quarter due to higher demand from oil sands pipeline projects and other project work.
Gross profits of $47.6 million in the fourth quarter were $0.1 million lower than in the prior year quarter primarily due to the impact of lower gross margins offset in part by higher revenues as noted above. The decrease in GSD gross margins was due to the introduction of lower margin products, difficulty passing on supplier price increases and competitive pressures. The decrease in C&I gross margins was due to several large lower margin projects and reduced purchased discounts associated with reduced inventory levels.
Cash operating and administrative costs were $39.8 million in the fourth quarter, a decrease of $1.0 million or 2% from the prior year quarter. The decrease was primarily due to cost savings from restructuring activities completed earlier in 2012 and lower bad debt provisions offset in part by higher costs associated with increased sales volumes and restructuring charges of $2.3 million related to the closing of additional branches.
