Hardwoods Distribution Inc. (“HDI”) announced financial results for the three months ended March 31, 2020. For the 1Q 2020, total sales increased 13.2% to $325.1 million, from $287.1 million in the same period in 2019.
Gross profit for the 1Q 2020 increased 22.7% to $62.6 million, from $51 million in the same quarter in 2019. This $11.6 million improvement primarily reflects the increased sales and a higher 1Q gross profit margin of 19.3%, as compared to 17.8% in the same period last year.
1Q 2020 adjusted EBITDA climbed 31.7% to a record $22.8 million, from $17.3 million during the same period in 2019. The $5.5 million year-over-year increase reflects the $11.6 million increase in gross profit, partially offset by the $6.1 million increase in operating expenses (before changes in depreciation and amortization, and non-cash LTIP expense).
Profit for 1Q grew 57.1% to $9.4 million, from $6 million in 1Q 2019. The $3.4 million improvement primarily reflects the $6.1 million increase in EBITDA, partially offset by year-over-year increases in depreciation and amortization of $0.9 million and income tax expense of $1.7 million, respectively. Diluted profit per share climbed to $0.44, from $0.28 in 1Q 2019, an increase of 57.1%.
HDI is North America’s largest wholesale distributor of architectural grade building products to the residential and commercial construction markets, with a comprehensive US and Canadian distribution network.
