For the three months ended June 30, 2020, Hardwoods Distribution Inc. (“HDI”) generated consolidated sales of $296 million, a decrease of $8.5 million, or 2.8%, from $304.5 million in the same period in 2019.
Gross profit for the 2Q 2020 increased 5.1% to $57.8 million, from $55 million in the same quarter in 2019. This $2.8 million improvement reflects a higher gross profit margin of 19.5%, as compared to 18.1% in the same period last year, partially offset by slightly lower sales. The significant improvement in gross margin percentage reflects the benefit of the company's re-established import supply lines and the inclusion of the Pacific Mutual Door operations, which carry a higher gross profit margin percentage relative to the rest of the business.
2Q Adjusted EBITDA climbed 15.3% to a record $24.4 million, from $21.2 million during the same period in 2019. The $3.2 million year-over-year improvement reflects the $2.8 million increase in 5 gross profit, and a $0.5 million decrease in operating expenses (before changes in depreciation and amortization, and non-cash LTIP expense).
Profit for 2Q 2020 grew 25.2% to $10.2 million, from $8.2 million in 2Q 2019. The $2 million improvement primarily reflects the $3.1 million increase in EBITDA, partially offset by the $1.1 million increase in depreciation and amortization.
For the six months ended June 30, 2020, total sales increased 5% to $621.1 million, from $591.6 million in the same period in 2019.
Gross profit for the first six months of 2020 increased 13.5% to $120.4 million, from $106.1 million in the same period in 2019. This $14.4 million improvement primarily reflects the increased sales and a higher gross profit margin of 19.4%, as compared to 17.9% in the same period last year.
Adjusted EBITDA for the first half of 2020 climbed 22.7% to $47.2 million, from $38.5 million during the same period in 2019.
Profit for the six months ended June 30, 2020 grew 38.7% to $19.6 million, from $14.1 million in the same period 2019. The $5.5 million improvement primarily reflects the $9.1 million increase in EBITDA, partially offset by a $2.1 million year-over-year increase in depreciation and amortization, and an increase in income tax expense of $1.8 million. Diluted profit per share climbed to $0.92, from $0.65 in the first half of 2019, an increase of 41.5%.
Hardwoods Distribution is North America’s largest wholesale distributor of architectural grade building products to the residential and commercial construction sectors.
