Losses narrow, sales gain at HD Supply
HD Supply reported net sales for its second fiscal quarter of $2.06 billion, an increase of 10.1% over sales of $1.87 billion in the same quarter of 2011. Net loss for the quarter, which ended July 29, 2012, was $56 million, compared with $101 million a year ago.
Highlights of the quarter include the June 2012 acquisition of Peachtree Business Products, a Marietta, Ga., company that provides customizable business and property marketing supplies to residential and commercial property managers, medical facilities, schools and universities, churches and funeral homes. Peachtree is being operated as part of HD Supply’s Facilities Maintenance business.
According to the company, net sales and adjusted EBITDA grew in all four of the company’s core businesses: Facilities Maintenance, Waterworks, Power Solutions (formerly Utilities/Electrical) and White Cap. Loss from continuing operations for the second quarter of fiscal 2012 was $56 million, an improvement of $45 million as compared with the second quarter of fiscal 2011.
“Over the last two years, we’ve experienced substantive net sales and adjusted EBITDA growth, and that trend has continued into the first half of fiscal 2012,” said Joe DeAngelo, CEO of HD Supply. “We’re excited with the recent purchase of Peachtree Business Products, a niche, bolt-on acquisition that brings even further scale and product depth for our Facilities Maintenance business. As we seek to grow our business in both organic and inorganic ways, our focus remains relentless on deepening our customers’ experience and relationships.”
American Builders Supply adds two veteran execs
American Builders Supply (ABS), one of the largest independent suppliers of doors, windows and trusses to home builders in Florida, has added two industry executives from ProBuild, 84 Lumber and HD Supply to its ranks. Both will report to CEO Bill Myrick at ABS’s Sanford, Fla., headquarters.
Mark Garboski, 42, previously served as VP shared services at ProBuild Holdings. Before that, he spent 15 years in a variety of positions at 84 Lumber, most recently as executive VP and earlier as VP purchasing, pricing and category management; VP president and general manager, manufacturing; and regional manager.
The company also appointed Shaun Heelan as chief financial officer. Heelan, 53, comes to ABS from IDEX Optics and Photonics, where he was VP finance. Prior to that, he spent three years at HD Supply, first as CFO of the electrical division and later as CFO of the firm’s White Cap Construction Supply division. Earlier, he had a 20-year career at General Electric, most recently as director of finance, global supply chain in the company’s consumer and Industrial division. He began his career as an audit manager for the U.S. Department of Labor and the U.S. Department of Defense.
ABS, a portfolio company of Blue Wolf Capital Partners, serves customers throughout north and central Florida from its Orlando-area base in Sanford and four additional manufacturing and distribution facilities located in Winter Haven, Melbourne, Clermont and Jacksonville. Through its Melbourne and Sanford facilities, ABS also offers custom doors and molding products for specialty home builders and retail customers.
In a press release, CEO Myrick said: “We are pleased to gain executives of such high caliber with proven skills in finance, profitability management, operations and supply chain control. Their guidance will add efficiencies that better position us to grow in our core markets and expand into new ones."
Michael Ranson, partner at Blue Wolf, added, "ABS is rapidly growing into a major regional supplier of building products, and we are confident that this management team will provide professional and effective leadership to take advantage of opportunities arising out of Florida’s rebounding housing market. Under Blue Wolf’s ownership, ABS has consolidated four leading independent competitors in the last 15 months, including Clermont Builders Supply in February of this year.”
In its 85th year, McCoy’s to open 84th unit
San Marcos, Texas-based McCoy’s Building Supply announced plans to open its first new location since 2007, with a store in Taylor, Texas.
The store will mark the regional company’s 84th unit overall as it celebrates its 85th anniversary.
“We’re passionate about our business and proud of our success, but we never want to lose the special ‘hometown feel’ you experience as a McCoy customer,” said president and CEO Brian McCoy. “The innovations we’ve implemented over the past 85 years are never a substitute for the hands-on customer service.”
The new store will also feature a new store design that focuses on energy conservation. VP store development Art Johnson explained: “We’ve simplified our floor plan, increasing its energy efficiency while decreasing its construction timeline.”
A smaller, more efficient store further supports McCoy’s fundamental belief that its “Born-to-Build” customers want to get in, get out and get back to building as quickly as possible, the company said.
Construction on the store broke ground in August. The new store in Taylor will be McCoy’s first since Alpine, Texas, in 2007.
“We’ve often been asked how we’re able to compete in these tough economic times,” said McCoy. “It’s simple. We concentrate on doing the things they can’t, like loading your lumber for you and having a manager on the floor. And if you’re a repeat customer, we’re probably going to know what project you’re working on and be able to greet you by name.”
McCoy’s, the 2009 Home Channel News Pro Dealer of the Year, hosted a yard tour of a San Antonio location during the 2011 ProDealer Industry Summit.