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Posted June 10, 2016

HD Supply sales up 7 percent

Despite sales gain, debt payment results in loss of $14 million for the quarter.


HD Supply Holdings reported net sales of $1.8 billion for the first quarter of fiscal 2016, an increase of 7.3 percent compared to the first quarter of fiscal 2015.

However, the company reported that net income decreased $256 million to a net loss of $14 million for the quarter, compared to $242 million net income for the first quarter of fiscal 2015. The loss was due to a $115 million extinguishment of outstanding debt and a $189 million tax benefit in the first quarter of fiscal 2015 as a result of IRS and state audit settlements.

Net loss per diluted share was 7 cents, compared to a net income per diluted share of $1.21 for the first quarter of fiscal 2015.

"I am extremely pleased with the team's performance in the first-quarter of 2016. We delivered 7 percent net sales growth, 14 percent Adjusted EBITDA growth and 104 percent Adjusted Net Income per Diluted Share growth despite a challenging uncontrollable environment," stated Joe DeAngelo, chairman and CEO of HD Supply. "We focused on what we could control and delivered solid profitable growth, operating leverage and free cash flow."

For the Construction & Industrial – White Cap business segment, net sales increased 9.8 percent to $447 million for the quarter, compared to $407 million for the first quarter of fiscal 2015. Adjusted EBITDA increased $9 million, or 26.5 percent, to $43 million for the first quarter of fiscal 2016 as compared to $34 million for the first quarter of fiscal 2015. Adjusted EBITDA as a percentage of Net sales was 9.6 percent for the first quarter of fiscal 2016, up approximately 120 basis points from 8.4 percent for the first quarter of fiscal 2015.

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