2Q sales in Canada increased by $3.4 million, or 14% year over year, to $27.9 million Double-digit growth was achieved in all regions, reflecting successes in winning new business, as well as overall stronger product prices and the positive impact of a weaker Canadian dollar.
2Q gross profit increased to $20.5 million, up 13.5% from $18.1 million during the same period last year. This improvement reflects the higher sales revenue, partially offset by the lower gross profit margin of 17.2%.
2Q EBITDA increased 11.9% to $7.5 million, from $6.7 million during the same period in 2013. The EBITDA gain reflects the increase in gross profit, partially offset by higher expenses. Profit for the period was $4 million, compared to $4.4 million during the same period in 2013. The year-over-year change reflects a $0.2 increase in depreciation and amortization, a $0.5 million increase in net finance cost, and a $0.5 million increase in income tax expense, partially offset by the $0.8 million improvement in EBITDA.
“We achieved the best quarterly sales results in our history and generated near-record EBITDA during the three months ended June 30, 2014,” said Hardwoods’ CFO Rob Brown who is serving as Acting Chief Executive Officer of the Company.
For the six months ended June 30, 2014, total sales increased by 20.5% to $220 million, from $182.6 million in the first half of 2013. Hardwoods’ US operations increased sales by $19.6 million, or 14.7%, reflecting $11.9 million in organic growth and $7.7 million in incremental revenue from acquired businesses. First half sales in Canada increased by $5 million, or 10.7%, year-over-year, entirely on organic growth.
First-half gross profit increased 14.2% to $38.8 million, from $34 million in the first six months of 2013. This gain reflects the increased sales, partially offset by a lower gross margin of 17.6%.
First-half EBITDA increased to $12.6 million, from $11.9 million during the same period in 2013. The 6.4% gain reflects higher gross profit, partially offset by higher expenses. Profit for the period was $7 million, compared to $7.6 million during the same period in 2013, reflecting a $0.3 million increase in depreciation and amortization, a $0.5 million increase in net finance cost, and a $0.6 million increase in income tax expense, partially offset by the $0.8 million improvement in EBITDA.
Hardwoods is one of North America’s largest distributors of high-grade hardwood lumber, sheet goods and architectural millwork to the cabinet, moulding, millwork, furniture and specialty wood products industries. The Company currently operates a network of 33 distribution centers in the U.S. and Canada.
