HD Supply Continues Sales & Profit Boom Throughout Q4, 2015

The company had solid year-over-year sales growth in all three business segments throughout the year, including more than 10 percent growth in Construction & Industrial - White Cap, while full year organic growth was 6.0 percent.

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Atlanta-based HD Supply — No. 4 on Industrial Distribution's 2015 Big 50 List — reported its 2015 fourth quarter and full year financial results on Tuesday, showing another big quarter for the company.

HD Supply posted Q4 sales of $1.65 billion, up 6.8 percent over the same period in 2014, while profit of $871 million was a complete reversal of 2014's Q4 net loss of $93 million. The 2015 Q4 profit included a $1 billion deferred tax asset valuation allowance. The tax benefit aside, adjusted profit in Q4 was $55 million, compared to a profit of $7 million in the prior year period. Operating profit increased 8.8 percent year-over-year. HD Supply's daily organic sales growth in Q4 was 7.0 percent.

Q3 sales were $2.1 billion, while total profit was $250 million.

For the full year 2015, HD Supply sales of $7.39 billion were up 6.0 percent from 2014, Total profit was $1.47 billion, compared to a $3 million profit in 2015. Adjusted 2015 profit was $241 million. Operating income increased 30 percent over 2014. HD Supply's daily organic sales growth for the full year was 6.0 percent.

By business segment:

  • Facilities Maintenance — Q4 sales increased 8.2 percent year-over-year to $606 million, while full year sales increased 7.2 percent over 2014 to $2.69 billion.
  • Waterworks — Q4 sales increased 3.3 percent year-over-year to $533 million, while full year sales increased 3.4 percent to $2.51 billion.
  • Construction & Industrial - White Cap — Q4 sales increased 12.1 percent to $399 million, while full year sales increased 10.4 percent to $1.73 billion.

Monthly sales in Q4:

  • November - $534 million (+6.0 percent daily sales growth year-over-year)
  • December - $506 million (+11.4 percent daily sales growth)
  • January - $608 million (+4.1 percent daily sales growth)

Preliminary February Sales - $520 million (+8.8 percent daily sales growth)

Preliminary February daily sales growth by business:

  • Facilities Maintenance: +9.5 percent
  • Waterworks: +9.4 percent
  • Construction & Industrial - White Cap: +12.2 percent.

HD Supply said that it expects Q1 2016 total sales of $1.81 billion to $1.86 billion. It expects 2016 full year end market growth of approximately 3 percent.

By customer end market, HD Supply expects the following growth in 2016:

  • Residential Construction: Up in the mid-single digits
  • Non-Residential Construction: Up in the mid-single digits
  • Water Infrastructure: Down in the low single digits to up in the low single digits
  • "Living Space" MRO: Up 1-2 percent
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