Hardwoods Distribution Inc. (“HDI”) announced financial results for the three months ended June 30, 2019. 2Q 2019 sales increased 2.1% to $304.5 million, from $298.2 million during the same period in 2018 - a year-over-year increase of $6.4 million. The increase is comprised of $8 million, representing a 2.7% increase in sales, and $9.1 million related to a favorable foreign exchange impact from a stronger US dollar when translating its US sales to Canadian dollars for reporting purposes.
Gross profit for the 2Q 2019 increased 3.5% to $55 million, from $53.2 million during the same period in 2018. This $1.8 million improvement reflects higher sales and a higher gross profit margin. As a percentage of sales, 2Q gross profit margin increased to 18.1%, from 17.8% as our new import supply lines began to gain traction.
For the three months ended June 30, 2019, HDI generated Adjusted EBITDA of $21.2 million, as compared to $23.1 million during the same period in 2018.
Profit for the three months ended June 30, 2019 was $8.2 million, as compared to $9.8 million in the same period in 2018. The $1.7 million decrease primarily reflects the $3.2 million increase in operating expenses and $0.2 million increase in net finance expense, partially offset by the $1.8 million increase in gross profit.
HDI is North America’s largest wholesale distributor of architectural grade building products to the residential and commercial construction markets, with a comprehensive US and Canadian distribution network.