HD Supply Holdings (HDS) swung to a net profit for the quarter ended Apr. 30, 2017. The company has made a net profit of $85 million, or $ 0.42 a share in the quarter, against a net loss of $14 million, or $0.07 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $127 million, or $0.63 a share compared with $103 million or $0.51 a share, a year ago.
Revenue during the quarter grew 5.17 percent to $1,873 million from $1,781 million in the previous year period. Gross margin for the quarter contracted 51 basis points over the previous year period to 33.69 percent. Total expenses were 90.60 percent of quarterly revenues, up from 90.01 percent for the same period last year. That has resulted in a contraction of 60 basis points in operating margin to 9.40 percent.
Operating income for the quarter was $176 million, compared with $178 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $207 million compared with $215 million in the prior year period. At the same time, adjusted EBITDA margin contracted 102 basis points in the quarter to 11.05 percent from 12.07 percent in the last year period.
"This is a significant moment in time for HD Supply as we simplify our business mix and accelerate our focus on next generation growth and innovation", stated Joe DeAngelo, chairman, president & chief executive officer of HD Supply. "We continue to strategically evolve as we extend our customer-centric service differentiation."
For the second-quarter, HD Supply Holdings expects revenue to be in the range of $1,325 million to $1,365 million. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.60 to $0.65.
Operating cash flow improvesHD Supply Holdings has generated cash of $83 million from operating activities during the quarter, up 9.21 percent or $7 million, when compared with the last year period. The company has spent $22 million cash to meet investing activities during the quarter as against cash outgo of $17 million in the last year period.
The company has spent $66 million cash to carry out financing activities during the quarter as against cash outgo of $127 million in the last year period.
Cash and cash equivalents stood at stood at $70 million as at Apr. 30, 2017.
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