Hardwoods Distribution Inc. announced financial results for the three months and full year ended December 31, 2016. 4Q 2016 sales increased by 69.8% to $239.4 million, from $141.0 million in 4Q 2015, as the company said in the press release received by Lesprom Network.
4Q gross profit increased to $43.5 million, an increase of 74.2% from $25 million in Q4 2015. The year-over-year improvement reflects higher sales revenue combined with a higher gross profit margin from both the Rugby and Hardwoods operations. As a percentage of sales, 4Q 2016 gross profit margin increased to 18.2%, from 17.7% in 4Q 2015.
4Q 2016 Adjusted EBITDA increased 42.6% to $10.9 million, from $7.7 million in 4Q 2015. The $3.3 million gain reflects the increase in gross profit, partially offset by higher operating expenses (before expenses related to the Rugby acquisition and before an increase in depreciation and amortization). Profit 8 for the period increased 47.4% to $6.6 million, from $4.5 million during the same period in 2015.
For the FY 2016 total sales increased by 38.1% to $789.3 million, from $571.6 million in 2015.
Gross profit for the 2016 year increased 44.3% to $143.8 million, from $99.6 million in 2015. This gain reflects the increased sales, together with a higher gross profit margin. As a percentage of sales, gross profit margin increased to 18.2%, from 17.4% in 2015.
Adjusted EBITDA for 2016 increased to $46.1 million, from $34.8 million in 2015. The 32.6% gain primarily reflects the $44.1 million increase in gross profit, partially offset by the $32.8 million increase in operating expenses (before expenses related to the Rugby acquisition and before an increase in depreciation and amortization).
Adjusted profit for the period increased 26.0% to $25.4 million, from $20.1 million in 2015.
Hardwoods is one of North America’s largest distributors of non-structural architectural grade building products to the residential and commercial construction markets.
