4Q gross profit increased to $19.1 million, up 19.4% from $16.0 million during the same period in 2013. This improvement reflects the higher sales revenue, partially offset by a lower gross profit margin.
4Q EBITDA increased 24.2% to $5.2 million, from $4.2 million in 4Q 2013. The EBITDA gain reflects the increase in gross profit, partially offset by higher operating expenses, before depreciation and amortization.
Profit for the period increased to $2.8 million, from $2.4 million in 2013. The year-over-year increase reflects the higher EBITDA, partially offset by a $0.4 million increase in income tax expense and a $0.2 million increase in depreciation and amortization.
For the year ended December 31, 2014, total sales increased by 22.8% to $455.7 million, from $371.2 million in 2013. Hardwoods’ US operations increased sales by $49.8 million, or 18.6%, reflecting $28 million of organic growth and $21.8 million in incremental revenue from the acquired HMI business.
Full-year 2014 sales in Canada increased by $9.4 million, or 9.9%, year-over-year, reflecting higher product prices, partially offset by weaker volume demand in the Canadian market.
EBITDA for 2014 increased to $25.5 million, from $21.4 million in 2013. The 19.2% increase primarily reflects higher gross profit, partially offset by increased operating expenses, before depreciation and amortization.
Profit for the year increased to $14 million, from $13.1 million in 2013, reflecting the $4.1 million improvement in EBITDA, partially offset by a $2.3 million increase in income tax expense, $0.7 million increase in depreciation and $0.2 million increase in net finance cost.
“Hardwoods achieved the best revenue and EBITDA in our history in 2014 as we implemented our “leverage import” and “strengthen commercial” business strategies and capitalized on US market growth,” said Hardwoods’ CEO Lance Blanco.
Hardwoods Distribution Inc. is one of North America’s largest wholesale distributors of hardwood lumber and related sheet good products, operating a network of 32 distribution centres across North America, as well as a hardwood sawmill and kiln drying operation in the United States.
