Hardwoods Distribution Inc. ("HDI") announced financial results for the three and nine months ended September 30, 2021.
For the three months ended September 30, 2021, consolidated sales climbed to a record $471.7 million, an increase of $234.7 million, or 99.1%, from $236.9 million in the same period in 2020.
Gross profit for the 3Q 2021 grew 158.0% to $116.2 million, from $45.0 million in the same quarter last year. This $71.2 million improvement reflects the strong sales growth paired with a record gross profit margin.
3Q 2021 Adjusted EBITDA climbed 226.2% to a record $63.8 million, from $19.6 million during the same period in 2020.
Profit for the 3Q 2021 grew 330.0% to $33.7 million, from $7.8 million in Q3 2020. The $25.9 million improvement primarily reflects the $43.4 million increase in EBITDA, partially offset by a $5.9 million increase in depreciation and amortization, a $2.5 increase in net finance expense, and the $9.0 million increase in income tax expense.
"Our 3Q financial performance was exceptionally strong even after taking into account the more favorable operating conditions in the current period, as compared to the significant pandemic-related business disruptions that impacted sales in the same period last year," said Rob Brown, HDI's President and CEO. "We are also pleased that our Board of Directors has approved a 20% increase in our dividend, a decision that is supported by strong execution of our strategic plan and growth of our earnings and cash flows."
For the nine months ended September 30, 2021, total sales increased 59.1% to $1.1 billion, from $691.9 million in the same period in 2020. Gross profit for the nine-month period ended September 30, 2021 grew 87.6% to $250.0 million, from $133.2 million in the period last year.
Adjusted EBITDA for the first nine months of 2021 climbed 146.8% to $133.6 million, from $54.1 million during the same period in 2020.
Profit for the nine months ended September 30, 2021 grew 219.7% to $71.0 million, from $22.2 million in the same period in 2020.
HDI is one of North America's largest suppliers of specialty building products to fabricators, home centers and builders servicing the new residential, repair and remodel, and commercial construction end-markets.
