For the three months ended March 31, 2021, Hardwoods Distribution's (“HDI”) consolidated sales grew to $291.2 million, an increase of $49.4 million, or 20.4%, from $241.7 million in the 1Q 2020.
Gross profit for the 1Q 2021 grew 24.4% to $57.9 million, from $46.6 million in the same quarter last year. This $11.3 million improvement reflects the increase in sales, together with a higher gross profit margin. Gross profit margin of 19.9% was the best in HDI's history and was up from 19.3% in the same period last year, primarily reflecting an increase in the selling prices of our products without a corresponding increase in costs.
1Q 2021 adjusted EBITDA climbed 52.1% to a record $25.8 million, from $16.9 million during the same period in 2020. The $8.8 million year-over-year improvement reflects the $11.3 million increase in 5 gross profit, partially offset by the $2.5 million increase in operating expenses (before changes in depreciation and amortization and non-cash LTIP expense).
Profit for the 1Q 2021 grew 86% to $13 million, from $7 million in 1Q 2020. The $6 million improvement primarily reflects the $8.2 million increase in EBITDA, partially offset by the $2 million higher income tax expense.
"After achieving record-setting performance in 2020, our 2021 year is off to an excellent start with the best quarterly financial performance in our history," said Rob Brown, HDI's President and CEO. "Our 1Q results, which include new records for sales, gross margin percentage, Adjusted EBITDA and profit, were achieved on a combination of favourable market conditions, highly efficient operational performance, and strong strategic execution."
HDI is North America’s largest wholesale distributor of architectural grade building products to the residential, repair and remodel and commercial construction sectors.
