Posted September 9, 2015

HD Supply announces Q2 results

Sales grow 7% and adjusted EBITDA grows 15% versus prior year.

  • Net Sales increased 7 percent to $2,006 million
  • Operating Income improved 36 percent to $222 million
  • Adjusted EBITDA increased 15 percent to $258 million
  • Adjusted Net Income per diluted share increased approximately 60 percent to $0.56 (Net Income per diluted share of $0.54)

HD Supply Holdings, Inc. today reported Net sales of $2.0 billion for the second quarter of fiscal 2015 ended August 2, 2015, an increase of $126 million, or 6.7 percent, as compared to the second quarter of fiscal 2014.

The company believes its sales performance represents growth of approximately 300 – 400 basis points in excess of its market growth estimate.

“I am very pleased with the team’s performance in our second quarter. We delivered 7 percent sales growth, 15 percent Adjusted EBITDA growth and approximately 60% Adjusted EPS growth despite a challenging environment,” stated Joe DeAngelo, CEO of HD Supply. “We also took transformative actions this quarter including the announcement to sell our Power Solutions unit. We continue to focus on controllable execution that enables customer success, extends our differentiation and accelerates value creation.”

On July 15, 2015, the company announced that it had entered into a definitive agreement to sell its HD Supply Power Solutions business unit, a leading provider of a diverse product and service offering serving investor-owned utility, public power, construction and industrial markets, to Anixter Inc. The purchase price of $825 million is payable in cash at closing, with expected cash proceeds to the company of approximately $800 million, net of transaction costs.

The company has now received regulatory approval and the transaction is expected to close in HD Supply's third quarter of fiscal 2015. In accordance with Accounting Standards Codification 205-20, Discontinued Operations, the results of Power Solutions are classified as discontinued operations for all periods presented.

Gross profit increased $54 million, or 8.8 percent, to $665 million for the second quarter of fiscal 2015 compared to $611 million for the second quarter of fiscal 2014. Gross profit was 33.2 percent of Net sales for the second quarter of fiscal 2015, up approximately 70 basis points from 32.5 percent of Net sales for the second quarter of fiscal 2014.