Hardwoods Distribution Inc. (“HDI”) announced financial results for the three and nine months ended September 30, 2020. For the 3Q 2020 HDI generated consolidated sales of $315.8 million, an increase of $23.4 million, or 8%, from $292.5 million in the same period in 2019.
Gross profit for the 3Q 2020 increased 12.6% to $60 million, from $53.3 million in the same quarter last year. This $6.7 million improvement was driven by the increase in sales, together with a higher gross profit margin. Gross profit margin of 19% was up from 18.2% in the same period last year, reflecting the benefit of the company's re-established import supply lines and the inclusion of the Pacific Mutual Door sales, which carry a higher gross profit margin percentage relative to the rest of the business.
3Q 2020 adjusted EBITDA climbed 22.4% to a record $26.1 million, from $21.3 million during the same period in 2019. Profit for 3Q 2020 grew 18% to $10.5 million, from $8.9 million in 3Q 2019.
"We turned in our third consecutive record-setting quarter, with our strategies helping to boost profitability even as we continued to navigate the COVID-19 pandemic," said Rob Brown, HDI's President and CEO.
For the nine months ended September 30, 2020, total sales increased 6% to $936.9 million, from $884.1 million in the same period in 2019. Of the $52.8 million year-over-year increase, $61.6 million, representing a 7% increase in sales, was generated by acquired businesses, and $14.3 million relates to a favorable foreign exchange impact from a stronger US dollar when translating US sales to Canadian dollars for reporting purposes.
Gross profit for the first nine months of 2020 increased 13.2% to $180.4 million, from $159.3 million in the same period in 2019. This $21.1 million improvement primarily reflects the increased sales and a higher gross profit margin of 19.3%, as compared to 18.0% in the same period last year.
Adjusted EBITDA for the first nine months of 2020 climbed 22.6% to $73.3 million, from $59.8 million during the same period in 2019. Profit for the nine months ended September 30, 2020 grew 30.8% to $30.1 million, from $23 million in the same period in 2019.
HDI is North America’s largest wholesale distributor of architectural grade building products to the residential and commercial construction sectors.
