HD Supply Announces Q4 and Full-Year Fiscal 2011 Results
Sales grow 14.8 percent over Q4 2010; momentum continues so far in 2012.
Highlights:
- 4Q11 Net sales increased 14.8 percent to $1.8 billion; FY11 Net sales increased 10.1 percent to $7.7 billion
- 4Q11 Operating income improved $26 million to $24 million; FY11 Operating income improved $133 million to $199 million
- 4Q11 Adjusted EBITDA increased 25.0 percent to $115 million; FY11 Adjusted EBITDA increased 24.5 percent to $569 million
- $1.2 billion of liquidity
HD Supply, Inc. has reported net sales for the fiscal 2011 fourth quarter ended January 29, 2012 of $1.8 billion, an increase of $236 million, or 14.8 percent, as compared to the fourth quarter of fiscal 2010.
Gross profit for the fourth quarter of fiscal 2011 increased by $70 million, or 15.4 percent, to $525 million compared to $455 million for the fourth quarter of fiscal 2010. Gross profit for the fourth quarter of fiscal 2011 increased to 28.8 percent of net sales versus 28.6 percent of net sales for the fourth quarter of fiscal 2010.
“The HD Supply team delivered outstanding, full-year, financial results. We reported our seventh consecutive quarter of year-over-year sales growth and the largest percentage sales increase since 2006 for both the quarter and full year. In addition, we reported our highest gross profit rate since 2005 and our best operating profit since 2007,” stated Joe DeAngelo, CEO of HD Supply. “This momentum has continued, with double-digit, year-over-year sales growth in February 2012.”
Business Highlights
- HD Supply is currently leveraging its enterprise capability by supplying a diverse portfolio of products from multiple HD Supply businesses into the largest single-phase resort development in the history of the Caribbean, Baha Mar. Since the start of construction in early 2011, HD Supply’s White Cap, Waterworks and Electrical businesses have all participated in the development of this 1,000-acre, $3.4 billion resort, gaming and entertainment complex, planned to open in late 2014.
- HD Supply Waterworks continues its commitment to modernization and enhancement projects with emphasis on turn-key Automatic Meter Reading (AMR) and Advance Metering Infrastructure (AMI) project implementation and justification, and was recently awarded a contract from the borough of Seaside Heights, NJ for Sensus water and electric meters that utilize FlexNet technology, which increases meter reading efficiency, reduces overhead costs and enhances customer service simply, reliably, and with unlimited flexibility. HD Supply Waterworks was also selected to provide project management for this meter installation.
Operating income for the fourth quarter of fiscal 2011 was $24 million, an improvement of $26 million compared to the operating loss of $2 million for the fourth quarter of fiscal 2010. The improvement in operating income reflects a 14.8 percent sales growth and a 130 basis point decline in operating expenses as percent of sales despite inflationary pressures such as increased medical and fuel costs as well as a resumption of the company’s 401(k) match.
Loss from continuing operations before income taxes improved $20 million to $139 million in the fourth quarter of fiscal 2011 as compared to the fourth quarter of fiscal 2010. Loss from continuing operations for the fourth quarter of fiscal 2011 was $159 million, compared to a loss from continuing operations of $192 million for the fourth quarter of fiscal 2010.
Adjusted EBITDA for the fourth quarter of fiscal 2011 increased 25.0 percent to $115 million from $92 million in the fourth quarter of fiscal 2010. Adjusted EBITDA for the fourth quarter of fiscal 2011 increased to 6.3 percent of net sales versus 5.8 percent of net sales for fourth quarter of fiscal 2010.
Full-Year Results
Net sales for the fiscal year ended January 29, 2012 were $7.7 billion, an increase of $709 million, or 10.1 percent, compared to the fiscal year ended January 30, 2011. Gross profit for fiscal 2011 increased by $210 million, or 10.7 percent, to $2.2 billion compared to $2.0 billion for fiscal 2010. Gross profit for fiscal 2011 increased to 28.2 percent of net sales versus 28.1 percent of net sales for fiscal 2010.
Operating income for fiscal 2011 was $199 million, an improvement of $133 million compared to operating income of $66 million for fiscal 2010. The improvement in operating income reflects a 10.1 percent sales growth and a 150 basis point decline in operating expenses as a percent of sales.
Loss from continuing operations before income taxes was $440 million in fiscal 2011, an
improvement of $116 million as compared to fiscal 2010. Loss from continuing operations for fiscal 2011 was $519 million, compared to a loss from continuing operations of $584 million for fiscal 2010.
Adjusted EBITDA for fiscal 2011 increased 24.5 percent to $569 million compared to $457 million for fiscal 2010. Adjusted EBITDA for fiscal 2011 increased to 7.4 percent of net sales versus 6.5 percent of net sales for fiscal 2010.
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