The 2020 Mid-Year Economic Update_long

HD Supply’s Second Quarter Sales Down 4.4%

Sales in the construction and industrial business — the division that HD Supply is selling to a private equity buyer for $2.9 billion — decreased 11.7% in 2Q.
HD Supply Holdings

HD Supply Holdings Inc. (NASDAQ: HDS), Atlanta, Georgia, reported sales of $1.6 billion for the second quarter of fiscal 2020 ended Aug. 2, a 4.4% decrease compared to the second quarter of fiscal 2019. Net income decreased 3% to $131 million in the period.

Construction and industrial, aka White Cap, sales decreased 0.3% to $793 million during the quarter. Adjusted EBITDA increased 11.6% to $106 million.

Facilities maintenance sales decreased 8.3% to $761 million during the quarter. Adjusted EBITDA decreased 11.4% to $132 million in 2Q.

On Aug. 10, HD Supply agreed to sell its White Cap business to an affiliate of Clayton, Dubilier & Rice for $2.9 billion. Net proceeds from the sale are expected to be approximately $2.5 billion after taxes and transaction costs. The transaction is expected to close in October.

Joe DeAngelo, chairman and CEO of HD Supply, didn’t comment on the sale in Wednesday’s press release but did issue another statement on HD Supply’s performance during another period that was impacted by the coronavirus crisis.

“Our highest priority remains the health and safety of our associates and our customers as we continue to support the operations and re-opening of living spaces, job-sites and work places,” he said. “Our financial strength and steadily improving results reflect the strength of our team and their dedication to safely delivering best-in-class service.”

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