HD Supply — No. 4 on Industrial Distribution's 2017 Big 50 List — on Wednesday reported its fiscal results for its 2017 second quarter, which ended June 30.
Like in Q1, the figures were led by a solid increase in year-over-year sales. The Q2 results did not include the performance of the company's recently-divestment Waterworks segment. Its $2.5 billion sale to private investment firm Clayton, Dubilier & Rice was completed Aug. 1.
In Q2, HD Supply total sales of $1.35 billion increased 5.4 percent year-over-year. Q1 total sales — which included $657 million from Waterworks — were $1.87 billion.
Total Q2 profit of $442 million dwarfed the $98 million from a year ago, primarily due to a $323 million tax benefit within discontinued operations from Waterworks. Q2 operating profit of $180 million increased 5.3 percent year-over-year, while gross profit of $539 million increased 5.1 percent. Adjusted EBITDA increased 2.5 percent year-over-year to $208 million.
By business segment in Q2:
- Facilities Maintenance sales of $769 million increased 3.8 percent year-over-year, with adjusted EBITDA up 3.3 percent. Q2 sales were up 12.8 percent from Q1.
- Construction & Industrial sales of $584 million increased 7.4 percent year-over-year, with adjusted EBITDA up 1.5 percent. Q2 sales were up 9.0 percent from Q1.
By month in Q2:
- May sales were $412 million, with average daily sales up 6.9 percent year-over-year.
- June sales were $408 million, with average daily sales up 3.4 percent year-over-year.
- July sales were $532 million, with average daily sales up 5.6 percent.
Preliminary August sales were $435 million, with average daily sales up 6.7 percent year-over-year. Average daily sales growth at Facilities & Maintenance was approximately 4.3 percent year-over-year, and 9.8 percent at Construction & Industrial.