Hardwoods Distribution Inc. (“HDI”) announced financial results for the three and nine months ended September 30, 2018. Sales for the three months ended September 30, 2018 increased 11.9% to $290.4 million, from $259.5 million during the same period in 2017. Of the $30.9 million year-over-year increase, $15.5 million, representing a 6% increase in sales, was due to organic growth and $5.0 million, representing a 1.9% increase in sales, reflects the addition of acquired businesses.
Gross profit for the three months ended September 30, 2018 increased 8.1% to $51.4 million, from $47.6 million during the same period in 2017. This $3.9 million improvement reflects higher sales, partially offset by a lower gross profit margin. As a percentage of sales, 3Q gross profit margin was 17.7% as compared to 18.3% year-over-year.
EBITDA increased to $14 million, from $13.4 million in the same period of 2017. The $0.6 million improvement reflects a $3.9 million increase in gross profit dollars, partially offset by a $3.4 million increase in operating expenses. 3Q Adjusted EBITDA of $15.2 million was on par with Q3 2017 results.
Profit increased 11.4% to $8.1 million, from $7.3 million during the same period in 2017. The $0.8 million improvement reflects a $0.6 million increase in EBITDA, and a $1 million decrease in income tax expense, partially offset by a $0.2 million increase in depreciation expense and a $0.6 million increase in net finance expense. 3Q diluted profit per share increased to $0.38 from $0.34 in Q3 2017.
"As we have throughout 2018, in the 3Q we continued to grow both our top and bottom line. 3Q sales increased by 11.9% and profit by 11.4% year-over-year as we executed our business strategies, responded to strong demand in US markets, and benefited from US corporate tax cuts," said Rob Brown, President and CEO of HDI.
HDI is North America’s largest distributor of architectural grade building products to the residential and industrial construction markets.
