HD Supply sales up 10%
HD Supply made progress on paying down its debt as second quarter net sales increased 10 percent to $2.3 billion.
Gross profit increased by 11 percent, to $661 million compared to $594 million for the second quarter of fiscal 2012. Gross profit was 29.3 percent of net sales compared to 28.8 percent of net sales for the second quarter of fiscal 2012.
The company saw growth in all four of its largest businesses: Facilities Maintenance, Waterworks, Power Solutions, and White Cap.
Net loss for the second quarter was $72 million, which included a $46 million loss on the
extinguishment and modification of debt. Net loss for the second quarter of fiscal 2012 was $56 million. Excluding the debt payments, net loss in the quarter improved $30 million compared to the second quarter of fiscal 2012.
Adjusted net income increased $33 million to $36 million, or 23 cents per share, compared to $3 million, or 2 cents, in the second quarter of fiscal 2012. The increase in adjusted net income is attributable to sales growth, improving gross margins, and a reduction in interest expense.
During the quarter, the company completed an initial public offering of approximately 61 million shares of common stock, resulting in proceeds of approximately $1.0 billion. The proceeds were used to redeem all $950 million of HD Supply Inc.’s outstanding 10.50% Senior Subordinated Notes due 2021.
“We continue to deliver above market revenue growth in all of our primary business units,” stated Joe DeAngelo, CEO of HD Supply. “The fiscal 2013 second quarter was another strong performance for HD Supply despite limited non-residential and municipal end market growth in addition to unusually cooler and wetter weather affecting outdoor construction and HVAC product sales in various parts of the country. We continue to deliver on our controllable execution and growth initiatives to drive growth regardless of the market environment.”
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