HD Supply announces fiscal 2014 1Q results
by MDJ staff
June 16, 2014 12:00 AM | 1688 views | 0 0 comments | 43 43 recommendations | email to a friend | print
On June 10, Cumberland-based HD Supply Holdings Inc., one of the largest industrial distributors in North America, reported that net sales for the first quarter of fiscal 2014 ending May 4 were $2.2 billion, an increase of $113 million, or six percent, as compared to the first quarter of fiscal 2013. The first quarter performance represents the 16th consecutive quarter of year-over-year average daily sales growth. The company believes its

sales performance represents growth of approximately 400 basis points in excess of its market growth estimate.

“I am pleased with our solid performance this quarter, despite the adverse impact of the severe weather we experienced throughout February and March. We remain cautiously optimistic that our end markets will continue to build on the emerging strength that we are seeing in select geographies,” said Joe DeAngelo, CEO of HD Supply. “We remain focused on controllable execution to deliver profitable growth in excess of our market.”

Gross profit increased $38 million, or six percent, to $631 million for the first quarter of fiscal 2014 compared to $593 million for the first quarter of fiscal 2013. Gross profit was 29.2 percent of net sales for the first quarter of fiscal 2014, up approximately 20 basis points from 29 percent of net sales for the first quarter of fiscal 2013. According to the company, gross profit improvement was driven by execution of the company’s category management initiatives and mix of products and services.

Operating income increased $18 million, or 18 percent, to $119 million for the first quarter of fiscal 2014, compared to $101 million for the first quarter of fiscal 2013. Operating income as a percentage of net sales increased approximately 60 basis points during the first quarter of fiscal 2014,compared to the first quarter of fiscal 2013. The improvement was primarily driven by a reduction in selling, general and administrative expenses as a percentage of net sales and improvements in gross margins.

Adjusted EBITDA increased $25 million, or 15 percent, to $190 million for the first quarter of fiscal 2014 compared to $165 million for the first quarter of fiscal 2013. According to the company, the increase in Adjusted EBITDA was driven by Facilities Maintenance, Waterworks, and Construction & Industrial - White Cap, and reflects the continued focus on initiatives execution to drive growth in excess of the company’s estimate of market growth. Adjusted EBITDA as a percentage of net sales increased approximately 70 basis points to 8.8 percent in the first quarter of fiscal 2014, compared to 8.1 percent in the first quarter of fiscal 2013.

Net loss improved $119 million to $12 million for the first quarter of fiscal 2014, compared to a net loss of $131 million for the first quarter of fiscal 2013. Net loss per diluted share was six cents in the first quarter of fiscal 2014, compared to a net loss per diluted share of $1 in the first quarter of fiscal 2013.

Adjusted net income increased $53 million to $39 million for the first quarter of fiscal 2014 as compared to an adjusted net loss of $14 million in the first quarter of fiscal 2013. According to the company, the increase in adjusted net income is attributable to sales growth, improving gross margins, and a reduction in interest expense. Adjusted net income per diluted

share was 20 cents in the first quarter of fiscal 2014, compared to an adjusted net loss of 11 cents per diluted share in the first quarter of fiscal 2013.

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