ATLANTA – HD Supply today reported net sales for the first quarter of fiscal 2010 of $1.8 billion, a decline of 5.7 percent compared to the first quarter of fiscal 2009. The operating loss in the first quarter of fiscal 2010 was $21 million compared with an operating loss of $25 million in the first quarter of 2009. Liquidity at the end of the first quarter of fiscal 2010 was $1.2 billion, an increase of approximately $275 million versus the end of fiscal 2009.
Consolidated net loss for the first quarter of fiscal 2010 was $202 million, compared to net income of $10 million for the same period in fiscal 2009. Net loss in the first quarter of fiscal 2010 included an $84 million non-cash charge to increase the valuation allowance against the Company’s deferred tax assets.
Net income in the first quarter of fiscal 2009 included a non-operating pre-tax gain of $200 million ($123 million after-tax) resulting from the extinguishment of senior subordinated debt and a $2 million non-cash charge to increase the valuation allowance against the Company’s deferred tax assets. Excluding the 2010 and 2009 charges for valuation allowances and the 2009 gain from the debt extinguishment, net loss of $118 million in the first quarter of fiscal 2010 compares with a net loss of $111 million in the first quarter of fiscal 2009.
In March 2010, HD Supply entered into amendments to its $1.3 billion Cash Flow Credit Agreement and its $2.1 billion ABL Credit Agreement, which extended approximately $874 million of the term loan principal and $1.75 billion under the ABL Credit Agreement to April 1, 2014.
“I am exceptionally proud of the HD Supply teams’ execution and although our industry remains challenged, we are beginning to see signs of recovery,” said Joe DeAngelo, chief executive officer, HD Supply. “Our growing liquidity and the extension of the majority of our debt maturities to 2014 enable continued investment in our business to accelerate future profitable growth. Our teams are intensely focused on earning new business and providing outstanding service to our customers.”
