HD Supply announces Q3 results
Net sales of $2 billion represent 5.1 percent improvement over Q3 2014.
Execution delivers 5 percent sales growth and 15 percent Adjusted EBITDA growth versus prior year.
- Net Sales increased 5 percent to $2,012 million
- Operating Income improved 28 percent to $229 million
- Adjusted EBITDA increased 15 percent to $265 million
- Adjusted Net Income per diluted share increased 61 percent to $0.66 (Net Income per diluted share of $1.24)
HD Supply Holdings, Inc. today reported Net sales of $2.0 billion for the third quarter of fiscal 2015 ended November 1, 2015, an increase of $98 million, or 5.1 percent, as compared to the third quarter of fiscal 2014.
The company believes its sales performance represents growth of approximately 300 basis points in excess of its market growth estimate.
“I am very pleased with the team’s performance in the third quarter. We delivered 5 percent sales growth, 15 percent Adjusted EBITDA growth and 61 percent Adjusted Net Income per Diluted Share growth despite a challenging environment,” stated Joe DeAngelo, Chairman and CEO of HD Supply.
“We also took action in the third quarter to further enhance our capital structure by redeeming $675 million of debt using the proceeds from the sale of the Power Solutions business unit. We continue to focus on controllable execution to grow in excess of market estimates, deliver operating leverage and generate cash.”
Gross profit increased $51 million, or 8.3 percent, to $666 million for the third quarter of fiscal 2015 compared to $615 million for the third quarter of fiscal 2014. Gross profit was 33.1 percent of Net sales for the third quarter of fiscal 2015, up approximately 100 basis points from 32.1 percent of Net sales for the third quarter of fiscal 2014. The improvement in Gross margin was primarily driven by category management initiatives and favorable mix of products and services.
Operating income increased $50 million, or 27.9 percent, to $229 million for the third quarter of fiscal 2015 compared to $179 million for the third quarter of fiscal 2014. Operating income as a percentage of Net sales increased approximately 200 basis points during the third quarter of fiscal 2015 as compared to the third quarter of fiscal 2014. The improvement was primarily driven by improvements in Gross margin, disciplined cost control and a reduction of amortization expense on certain acquisition-related intangible assets.
Business Unit Performance
Facilities Maintenance
Net sales increased $56 million, or 8.5 percent, to $716 million in the third quarter of fiscal 2015 as compared to $660 million in the third quarter of fiscal 2014. Adjusted EBITDA increased $10 million, or 7.2 percent, to $149 million during the third quarter of fiscal 2015 as compared to $139 million in the third quarter of fiscal 2014. Adjusted EBITDA as a percentage of Net sales decreased approximately 30 basis points to 20.8 percent in the third quarter of fiscal 2015 as compared to the third quarter of fiscal 2014.
Waterworks
Net sales increased $10 million, or 1.4 percent, to $705 million in the third quarter of fiscal 2015 as compared to $695 million in the third quarter of fiscal 2014. Adjusted EBITDA increased $6 million, or 9.4 percent, to $70 million during the third quarter of fiscal 2015 as compared to $64 million in the third quarter of fiscal 2014. Adjusted EBITDA as a percentage of Net sales increased approximately 70 basis points to 9.9 percent in the third quarter of fiscal 2015 as compared to the third quarter of fiscal 2014.
Construction & Industrial - White Cap
Net sales increased $40 million, or 9.7 percent, to $451 million in the third quarter of fiscal 2015 as compared to $411 million in the third quarter of fiscal 2014. Adjusted EBITDA increased $13 million, or 37.1 percent, to $48 million during the third quarter of fiscal 2015 as compared to $35 million in the third quarter of fiscal 2014. Adjusted EBITDA as a percentage of Net sales increased approximately 210 basis points to 10.6 percent in the third quarter of fiscal 2015 as compared to the third quarter of fiscal 2014.
Learn more at www.hdsupply.com
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