Atlanta, GA – HD Supply, Inc. today reported net sales for the fiscal 2013 first quarter ended May 5, 2013 of $2.1 billion, an increase of $232 million, or 12.6 percent, as compared to the first quarter of fiscal 2012. Gross profit for the first quarter of fiscal 2013 increased by $75 million, or 14.3 percent, to $598 million compared to $523 million for the first quarter of fiscal 2012. Gross profit for the first quarter of fiscal 2013 was 28.9 percent of net sales compared to 28.5 percent of net sales for the first quarter of fiscal 2012.
Business and Financial Highlights
HD Supply experienced net sales and Adjusted EBITDA growth in all four of the company’s largest businesses: Facilities Maintenance, Waterworks, Power Solutions, and White Cap.
The company also amended their Term Loan Facility to lower the borrowing margin by 275 basis points.
HD Supply extinguished $889 million of the company’s 13.5 percent Senior Subordinated Notes.
Operating income for the first quarter of fiscal 2013 increased by $57 million, or 133 percent, to $100 million compared to $43 million for the first quarter of fiscal 2012. The improvement in operating income reflects sales growth of 12.6 percent and an approximately 210 basis point decline in operating expenses as a percent of net sales. Loss from continuing operations for the first quarter of fiscal 2013 was $131 million, which included a $40 million loss on extinguishment of debt. Loss from continuing operations for the first quarter of fiscal 2012 was $376 million, which included a $220 million loss on extinguishment of debt. Excluding the loss on extinguishment of debt in both periods, loss from continuing operations in the first quarter of 2013 improved $65 million as compared to the first quarter of fiscal 2012.
“The fiscal 2013 first quarter was yet a further continuation of our strong performance as we continue to benefit from growth in our businesses and strengthening market conditions,” stated Joe DeAngelo, CEO of HD Supply. “We’re pleased with the first-quarter results, marking our 12th consecutive quarter of year-over-year sales growth.”
Adjusted EBITDA for the first quarter of fiscal 2013 increased 23.3 percent to $164 million from $133 million in the first quarter of fiscal 2012. Adjusted EBITDA for the first quarter of fiscal 2013 increased to 7.9 percent of net sales versus 7.2 percent of net sales for the first quarter of fiscal 2012. The increase in the Adjusted EBITDA rate reflects our continued focus on operating efficiency and the leveraging of fixed costs through sales volume increases. The company presents Adjusted EBITDA to provide additional information to evaluate its operating performance and its ability to service its debt. Reconciliations of GAAP measures to non-GAAP Adjusted EBITDA are included at the end of this press release.
