For the three months ended June 30, 2022, Hardwoods Distribution's (“HDI” )consolidated sales climbed to a record $700.3 million, an increase of $362.2 million, or 107.2%, from $338.0 million in the same period in 2021.
Gross profit for the 2Q 2022 grew 102.6% to $153.8 million, from $75.9 million in the same quarter last year. 2Q gross profit margin of 22.0% was similar to the 22.5% achieved in the same period last year.
2Q 2022 Adjusted EBITDA climbed 78.6% to $78.6 million, from $44.0 million during the same period in 2021. The $34.6 million improvement was driven primarily by the $77.9 million increase in gross profit, partially offset by the $43.3 million increase in operating expenses (before changes in depreciation and amortization, noncash LTIP expense, and transaction expenses).
Profit for the 2Q 2022 grew 72.4% to $41.9 million, from $24.3 million in 2Q 2021. The $17.6 million improvement primarily reflects the $37.2 million increase in EBITDA, partially offset by a $10.3 million increase in depreciation and amortization, the $4.9 million increase in income tax expense, and the $4.3 million increase in net finance expense.
Results from Operations - Six Months Ended June 30, 2022
For the six months ended June 30, 2022, consolidated sales climbed to $1.3 billion, an increase of $716.0 million, or 113.8%, from $629.2 million in the same period in 2021.
Gross profit for the first half grew 125.4% to $301.6 million, from $133.8 million in the same period last year. This $167.8 million improvement reflects significant organic and acquisition-based sales growth. At 22.4%, gross profit margin was higher than the 21.3% we achieved in the same period last year. The increase in gross profit percentage includes the impact of favorable changes in product mix, and the successful execution of our internal strategies designed to improve gross margin percentage over time.
First-half 2022 Adjusted EBITDA climbed 127.1% to $158.4 million, from $69.7 million in the same period of 2021. The $88.7 million improvement reflects the $167.8 million increase in gross profit, partially offset by the $79.1 million increase in operating expenses (before changes in depreciation and amortization, non-cash LTIP expense, and transaction expenses).
Profit for the first six months grew 128.9% to $85.4 million, from $37.3 million in the first half of 2021. The $48.1 million profit improvement primarily reflects the $90.4 million increase in EBITDA, partially offset by a $19.4 million increase in depreciation and amortization, the $14.6 million increase in income tax expense and the $8.3 million increase in net finance expense.
HDI is one of North America’s largest suppliers of specialty building products to fabricators, home centers and professional dealers servicing the new residential, repair and remodel, and commercial construction end-markets. The Company currently operates a network in North America of 86 facilities in the United States and Canada.
