Interline Brands, Jacksonville, FL, reported sales of $295.4 million for the first quarter ended March 30, a 31.5% increase vs. the same period last year. Net income of $9.4 million was up 11.8% from the first quarter 2006. Earnings per diluted share were 29 cents, an increase of 12% compared with the same time last year.
“Our facilities maintenance business posted record sales and
despite continued softness in our pro contractor market, our team continued to
execute well, generating record cashflow and double digit earnings growth for
the company,” Michael Grebe, chairman and CEO, said in a statement.
“Our revenue growth in the first quarter was driven by a
combination of our July 2006 acquisition of AmSan as well as strong performance
in our facilities maintenance businesses - which grew at 14.1%,” William
Sanford, president and chief operating officer, said in a statement. “Our
professional contractor business declined 6.2% in the first quarter compared to
the 15.4% we grew in the first quarter of 2006.”
Noting that Interline’s performance in the first
quarter of 2007 was at the high end of its expectations, Grebe said, “We
continue to remain highly confident in our ability to grow sales and earnings
over the long term. Our second quarter may be the most challenging quarter
given the difficult market conditions surrounding the pro contractor and
specialty distributor end-markets. We are also up against tough prior year
comps of 22.2% and 18.9% organic sales growth, respectively, in these markets.
As such, we expect earnings per share for the second quarter of 2007 to be
between 32 cents and 34 cents.”