For the three months ended December 31, 2020, Hardwoods Distribution Inc. (“HDI”) sales increased 7.1% to $308.4 million, from $287.8 million during the same period in 2019, a year-over-year increase of $20.6 million.
Gross profit for the 4Q 2020 increased 12.2% to $59.1 million, from $52.6 million during the same period in 2019. This $6.4 million improvement primarily reflects increased sales and a higher gross profit margin.
For the three months ended December 31, 2020, Adjusted EBITDA increased by 26.9% to $24.3 million, from $19.1 million during the same period in 2019.
"I believe HDI is as well positioned right now as we have been at any point in my 16 years with the company," said Rob Brown, HDI's President and CEO. "We have just turned in record annual sales, gross profit percentage, adjusted EBITDA and profit results in a year heavily influenced by the global pandemic, and we did it on the strength of our operational and strategic execution." "We moved quickly in 2020 to adapt to rapidly changing conditions, keeping our people safe and our operations open for business; we reduced expenses and working capital; and we turned our sales focus to capturing market share. At the same time, we continued to execute on our proprietary global sourcing capability. By the second half of the year, our import program was operating at peak performance and contributing to our record gross margin results. We also grew our high-margin door segment, and we completed three acquisitions during the year, adding $90 million of annualized sales to our business."
For the year ended December 31, 2020, total sales increased 6.3% to $1,245.3 million, from $1,171.9 million in 2019, a year-over-year improvement of $73.4 million.
Gross profit for the year ended December 31, 2020 increased 13.0% to $239.5 million, from $212.0 million in 2019. This $27.5 million improvement primarily reflects the increased sales and a higher gross profit margin, which improved year-over-year to 19.2%, from 18.1%.
For the year ended December 31, 2020, Adjusted EBITDA increased by $18.6 million or 23.5% to $97.5 million, from $79 million in 2019.
HDI is North America’s largest wholesale distributor of architectural grade building products to the residential and commercial construction sectors.
