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HD Supply — No. 4 on Industrial Distribution's 2017 Big 50 List — on Tuesday reported its fiscal results for its 2018 first quarter, which ended April 29.

The figures showed continued strong and accelerating growth for the company, led by a 14.2 percent increase in year-over-year (YoY) Q1 sales to $1.4 billion, outpacing growth of 9.0 percent in Q4 2017; 7.5 percent in Q3 2017; 5.4 percent in Q2 2017 and 5.2 percent in Q1 2017. HD Supply's Q1 2018 organic sales increased 9.9 percent.

The company's Q1 total profit of $89 million increased 4.7 percent YoY; operating profit of $151 million increased 17.1 percent; gross profit of $552 million increased 14.0 percent; and adjusted EBITDA increased 21.0 percent to $190 million.

"I am proud of the team’s performance in the first quarter. Despite difficult weather conditions in many regions, we delivered impressive sales growth of 14 percent," stated Joe DeAngelo, HD Supply chairman and CEO. "We are seeing the return from our growth investments and I am excited for the team to continue building upon the strong start to 2018. 

By business segment in Q1:

  • Facilities Maintenance sales of $723 million increased 6.0 percent YoY and outpaced Q4 2017's $642 million, with adjusted EBITDA of $123 million up 13.9 percent.
  • Construction & Industrial sales of $666 million increased 24.3 percent YoY and outpaced Q4 2017's $542 million, with adjusted EBITDA of $67 million up 36.7 percent. Q1 organic sales increased 14.4 percent.

By month in Q1:

  • February sales were $391 million, with average daily sales up 11.7 percent YoY and organic daily sales up 11.7 percent.
  • March sales were $423 million, with average daily sales up 12.0 percent YoY and organic daily sales up 7.5 percent.
  • April sales were $575 million, with average daily sales up 17.7 percent YoY and organic daily sales up 10.3 percent.

Preliminary May sales were approximately $488 million, with average daily sales up 18.7 percent YoY and organic daily sales up 10.6 percent. Preliminary average daily sales growth at Facilities & Maintenance was 6.3 percent, while Construction & Industrial had average daily sales growth of 34.5 percent and organic growth of 16.0 percent.

HD Supply anticipated Q2 2018 net sales to increase approximately 16 percent YoY at the mid-point, with organic sales up 8 percent.

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