Hardwoods Distribution's Inc. (“HDI”) FY 2019 sales increased 3.3% to $1,171.9 million, from $1,134.3 million in 2018, a year-over-year improvement of $37.7 million.
Gross profit for the year ended December 31, 2019 increased 5.3% to $212 million, from $201.3 million in 2018. This $10.7 million improvement primarily reflects the increased sales and a higher gross profit margin, which improved year-over-year to 18.1%, from 17.7%.
For FY 2019, HDI reported Adjusted EBITDA of $79 million, as compared to $78.9 million in 2018. Contributing to the 2019 results was a $10.7 million increase in gross profit, offset by a $10.6 million increase in operating expenses (before changes in depreciation and amortization, noncash LTIP expense, allowance related to duty deposits receivable, and transaction expenses)
Profit for the year ended December 31, 2019 was $29.6 million, as compared to $31.7 million in 2018.
4Q 2019 sales increased 4.7% to $287.8 million, from $275 million during the same period in 2018, a year-over-year increase of $12.8 million.
Gross profit for the 4Q 2019 increased 10.5% to $52.6 million, from $47.6 million during the same period in 2018. This $5 million improvement primarily reflects the higher sales and a higher gross profit margin. As a percentage of sales, 4Q gross profit margin increased to 18.3%, from 17.3% year-over-year as HDI benefited from re-established import supply lines and the inclusion of sales from the newly acquired Pacific Mutual Door operations, which carry a higher gross profit margin relative to the rest of the business.
4Q 2019, Adjusted EBITDA increased to $19.1 million, from $16 million during the same period in 2018.
Profit for the three months ended December 31, 2019 was $6.6 million, as compared to $5.8 million in the same period in 2018. The $0.8 million or 13.4% increase primarily reflects the $5 million increase in gross profit, partially offset by the $4.2 million increase in operating expenses.
HDI is North America’s largest wholesale distributor of architectural grade building products to the residential and commercial construction sectors.
