HD Supply reported net sales for its first fiscal quarter of $1.8 billion, a 14.2% increase compared with the same quarter in 2011. Operating income for the first quarter, which ended April 29, 2012, rose from $35 million in the first quarter of 2011 to $43 million in the first quarter of fiscal 2012.
The company also completed the refinancing of nearly $4 billion in outstanding indebtedness during the quarter. The debt refinancing effectively extended the maturity dates of the senior portion of the company’s debt structure to the years 2017 through 2020. The company now has no significant debt maturities until its 13.5% senior subordinated notes mature in mid-2015.
Net sales improved in all four of its core businesses: Facilities Maintenance, Waterworks, Utilities/Electrical, and White Cap. The company sold its Industrial Pipes, Valves and Fittings (IPVF) business to Shale-Inland Holdings for proceeds of approximately $469 million, minus $5 million in transaction costs.
“As a result of the debt refinancing and sale of our IPVF business, we have added financial strength and flexibility to invest in future growth initiatives and explore future niche acquisition opportunities that will grow our portfolio and continue to enhance market share,” said CEO Joe DeAngelo.