HD Supply sales increase 14.4 percent in Q1
Construction & Industrial net sales grow 24.3 percent.
June 5, 2018 – HD Supply Holdings, Inc. today reported Net sales of $1.4 billion for the first quarter of fiscal 2018 ended April 29, 2018, an increase of $173 million, or 14.2 percent, as compared to the first quarter of fiscal 2017. Organic sales growth for the first quarter of fiscal 2018 was 9.9 percent, as compared to the first quarter of fiscal 2017.
"I am proud of the team’s performance in the first quarter. Despite difficult weather conditions in many regions, we delivered impressive sales growth of 14 percent," stated Joe DeAngelo, Chairman and CEO of HD Supply. "We are seeing the return from our growth investments and I am excited for the team to continue building upon the strong start to 2018. I look forward to sharing more of our growth story on June 21st during our first Investor Day in Atlanta."
Gross profit increased $68 million, or 14.0 percent, to $552 million for the first quarter of fiscal 2018, as compared to $484 million for the first quarter of fiscal 2017. Gross profit was 39.7 percent of Net sales for the first quarter of fiscal 2018, down approximately 10 basis points from 39.8 percent for the first quarter of fiscal 2017.
Operating income increased $22 million, or 17.1 percent, to $151 million for the first quarter of fiscal 2018, as compared to $129 million for the first quarter of fiscal 2017. Operating income was 10.9 percent of Net sales for the first quarter of fiscal 2018, up approximately 30 basis points from 10.6 percent for the first quarter of fiscal 2017.
Net income increased $4 million, or 4.7 percent, to $89 million for the first quarter of fiscal 2018, as compared to $85 million for the first quarter of fiscal 2017.
Adjusted EBITDA increased $33 million, or 21.0 percent, to $190 million for the first quarter of fiscal 2018, as compared to $157 million for the first quarter of fiscal 2017. Adjusted EBITDA was 13.7 percent of Net sales for the first quarter of fiscal 2018, up approximately 80 basis points from 12.9 percent for the first quarter of fiscal 2017.
Adjusted net income increased $50 million, or 62.5 percent, to $130 million for the first quarter of fiscal 2018 as compared to $80 million for the first quarter of fiscal 2017. Adjusted net income per diluted share was $0.70 in the first quarter of fiscal 2018, as compared to $0.39 in the first quarter of fiscal 2017.
As of April 29, 2018, HD Supply’s combined liquidity of $880 million was comprised of $150 million in cash and cash equivalents and $730 million of additional available borrowings (excluding $174 million of borrowings on available cash balances) under HD Supply, Inc.’s senior asset-based lending facility, based on qualifying inventory and receivables.
Business Unit Performance
Facilities Maintenance
Net sales increased $41 million, or 6.0 percent, to $723 million in the first quarter of fiscal 2018, as compared to $682 million for the first quarter of fiscal 2017.
Construction & Industrial
Net sales increased $130 million, or 24.3 percent, to $666 million in the first quarter of fiscal 2018, as compared to $536 million for the first quarter of fiscal 2017. Organic sales growth was approximately 14.4 percent in the first quarter of fiscal 2018 as compared to the first quarter of fiscal 2017.
Second-Quarter and Full-Year 2018 Outlook
For the second quarter of fiscal 2018, Net sales are anticipated to be in the range of $1,535 million and $1,595 million. At the mid-point of the ranges, second-quarter 2018 Net sales and Adjusted EBITDA translate into approximately 16 percent growth and 15 percent growth, respectively, versus prior year.
On an organic bases at the mid-point of the range, second-quarter 2018 Net sales represents approximately 8 percent growth.
For the full year fiscal 2018, Net sales are anticipated to be in the range of $5,820 million and $5,940 million.
CONTRACTOR SUPPLY MAGAZINE
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