Interline Brands Posts Healthy Q2 Sales, Profit Increases

In the wake of being purchased by Home Depot, Interline – No. 17 on ID's Big 50 List – posted a solid second quarter with sales growth across all business segments.

Interline Brands – No. 17 on Industrial Distribution's 2014 Big 50 List – reported its 2015 second quarter earnings on Friday for the period ended June 26.

Interline's total sales for the quarter were $447.7 million, a 5.2 percent year-over-year increase. Sales to institutional facilities customers increased 3.6 percent in the quarter, while sales to multi-family housing facilities customers grew 10.7 percent. Sales to residential facilities customers increased 2.1 percent. 

Interline – which was recently purchased by Home Depot – had a gross profit increase of 3.9 percent in the quarter to $151.3 million.

Total profit for the quarter was $3.9 million, a considerable improvement over Q2 2014's net loss of $38.6 million. The company notes the increase was primarily due to the non-cash write-off of other intangible assets of $67.5 million during Q2 of 2014.

Michael J. Grebe, Chairman and Chief Executive Officer, commented, "We continue to be very encouraged by the broad-based growth we are seeing across all of our facilities maintenance end-markets, led by multi-family, which increased over 10 percent this quarter. Our top-line performance has been accelerating on both a year-over-year and sequential basis, driven by our strategic investments in the business.

"As we embark on our new partnership with The Home Depot, we are excited about the enhanced capabilities and services we will be able to offer our customers," Grebe continued. "By partnering with an industry leader, we believe we can offer a compelling solution that is truly unique in our industry - the ability to provide our customers with the maintenance, repair, and operations products and services they require, whenever and wherever needed."

Interline also included its earnings for the first six months of 2015, led by a 5.1 percent year-over-year sales increase to $859.5 million. Sales to institutional facilities customers increased 4.2 percent. Sales to our multi-family housing facilities customers increased 9.6 percent. Sales to residential facilities customers increased 2.0 percent.

Total profit for the first six months of 2015 was $0.2 million, compared to a net loss of $44.7 million a year ago. Gross profit increased 4.3 percent to $293.3 million.