HD Supply Holdings recently reported net sales of $1.4 billion for the second quarter of fiscal 2017 ended July 30, 2017, an increase of $69 million or 5.4%, as compared to the second quarter of fiscal 2016.
"In our second quarter of 2017, we stepped up our execution to improve performance. We met our revised net sales and adjusted EBITDA targets for the second quarter and recommitted to our full year guidance. Following the sale of our Waterworks business, we have achieved our targeted capital structure of 2 times to 3 times financial leverage and are committed to delivering profitable growth in excess of market,” stated Joe DeAngelo, chairman, president and CEO of HD Supply.
Gross profit increased $26 million or 5.1% to $539 million for the second quarter of fiscal 2017 as compared to $513 million for the second quarter of fiscal 2016. Gross profit was 39.9% of net sales for the second quarter of fiscal 2017, down about 10 basis points from 40% of net sales for second quarter of fiscal 2016.
Operating income increased $9 million or 5.3% to $180 million for the second quarter of fiscal 2017 as compared to $171 million for the second quarter of fiscal 2016. Operating income as a percentage of Net sales was 13.3% for the second quarter of fiscal 2017, flat as compared to the second quarter of fiscal 2016.
Net income increased $344 million to $442 million for the second quarter of fiscal 2017 as compared to $98 million for the second quarter of fiscal 2016. The increase in net income was primarily due to a $323 million tax benefit within discontinued operations to record a deferred tax asset recognizing the outside basis difference in the company’s waterworks business. Net income per diluted share increased $1.73 to $2.22 for the second quarter of fiscal 2017 as compared to $0.49 for the second quarter of fiscal 2016.
Adjusted EBITDA increased $5 million or 2.5% to $208 million for the second quarter of fiscal 2017 as compared to $203 million for the second quarter of fiscal 2016. Adjusted EBITDA as a percentage of net sales was 15.4% for the second quarter of fiscal 2017, decreasing about 40 basis points from 15.8 percent for the second quarter of fiscal 2016.
Adjusted net income increased $23 million or 22.1% percent, to $127 million for the second quarter of fiscal 2017 as compared to $104 million for the second quarter of fiscal 2016. Adjusted net income per diluted share was $0.64 for the second quarter of fiscal 2017 as compared to $0.51 for the second quarter of fiscal 2016. 2
As of July 30, 2017, HD Supply’s combined liquidity of about $590 million was comprised of $67 million in cash and cash equivalents and $523 million of additional available borrowings under HD Supply’s senior asset-backed lending facility, based on qualifying inventory and receivables.
For further details on the second-quarter results, click here.
HD Supply reveals second-quarter results
Source: HD Supply
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