EXHIBIT 99.2

ACR GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands)

(Unaudited)

ASSETS

	February 28,
	2007		2006
Current assets:
Cash	$	1,135	$	1,275
Accounts receivable, net		23,330		22,380
Inventories, net		43,516		38,264
Prepaid expenses and other current assets		1,619		1,250
Deferred income taxes		1,652		1,338
Total current assets		71,252		64,507
Property and equipment, net		5,647		4,844
Goodwill, net		5,408		5,408
Interest derivative asset		―		298
Other assets		853		979
Total assets	$	83,160	$	76,036

EXHIBIT 99.2

Continued

ACR GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

(Unaudited)

LIABILITIES AND SHAREHOLDERS’ EQUITY

	February 28,
	2007			2006
Current liabilities:
Current maturities of long-term debt	$	131		$	128
Current maturities of capital lease obligations		160			145
Accounts payable		23,106			25,002
Accrued expenses and other current liabilities		5,931			4,597
Income tax payable		232			146
Total current liabilities		29,560			30,018
Borrowings under revolving credit agreement		24,361			22,940
Long-term notes, net of current maturities		1,214			1,344
Long-term capital lease obligations, net of current maturities		412			248
Interest derivative liability		143			―
Deferred income taxes		184			340
Total long-term liabilities		26,314			24,872
Commitments and contingencies (Notes 5 and 10)
Shareholders’ equity:
Preferred stock, $.01 par, authorized 2,000,000 shares, none outstanding		―			―
Common stock, $.01 par, authorized 25,000,000 shares, 12,113,078 and 12,000,294 issued and outstanding at February 28, 2007 and 2006, respectively		121			120
Paid-in capital		43,286			44,413
Accumulated other comprehensive income loss, net of tax		(88	)		―
Unearned restricted stock compensation		―			(1,612	)
Accumulated deficit		(16,033	)		(21,775	)
Total shareholders’ equity		27,286			21,146
Total liabilities and shareholders’ equity	$	83,160		$	76,036

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