Interline Brands Reports 3Q Results
JACKSONVILLE -- Interline Brands, Inc., a leading distributor and direct marketer of maintenance, repair and operations products ("MRO"), reported sales and earnings for the fiscal quarter ended September 30, 2011.
"Our results for the third quarter reflect the relative stability of our end-markets and solid execution. Our efforts to build a premier, broad-line MRO distributor continue to gain momentum, complemented by the prudent investments we are making in capabilities that are specifically designed to improve the customer experience and generate incremental revenue. In addition, our recent acquisitions are delivering solid results and additional operating benefits," commented Michael J. Grebe, Chairman and Chief Executive Officer.
Third Quarter 2011 Performance
Sales for the quarter ended September 30, 2011 were $331.3 million, a 19.7% increase compared to sales of $276.8 million in the comparable 2010 period. On an organic basis, sales increased 3.7% for the quarter. Interline's facilities maintenance end-market, which comprised 77% of sales, increased 25.6% during the third quarter, and 3.5% on an organic basis. The professional contractor end-market, which comprised 13% of sales, increased 6.6% for the quarter. The specialty distributor end-market, which comprised 10% of sales, increased 0.5% for the quarter.
Gross profit increased $17.5 million, or 16.7%, to $122.3 million for the third quarter of 2011, compared to $104.8 million for the third quarter of 2010. As a percentage of sales, gross profit decreased 100 basis points to 36.9% compared to 37.9% for the prior year quarter. This decrease was related to the recent acquisitions of CleanSource, Inc. ("CleanSource") and Northern Colorado Paper, Inc. ("NCP"), as they have lower gross profit margins due primarily to their product mix and relative size.
"Our measured investments in additional sales professionals, key operations and technology initiatives, and recent acquisitions are improving our national and integrated MRO selling platform. While we will continue to adjust our plans as macro-economic conditions warrant, we are convinced these initiatives will position Interline for long-term revenue growth and enhanced profitability," commented Kenneth D. Sweder, Interline's President and Chief Operating Officer.