Hardwoods Distribution, one of North America’s largest wholesale distributors of hardwood lumber and related sheet good products, reported 42% increase of Adjusted EBITDA amid 41%% sales growth in 4Q2016 y-o-y. According to the announcement, the company’s sales accounted for CAD 239.4 million, generating Adjusted EBITDA of CAD 10.9 million in the period (4.6% margin).
For the complete 2016 the company’s revenues accounted CAD 789.3 million, generating CAD 46.2 million of adjusted EBITDA (5.8% margin).
Rob Brown, Hardwoods Distribution President and CEO, commented:
“We achieved record top and bottom line results in 2016 as we benefited from the addition of Rugby Architectural Building Products and generated organic growth in mixed market conditions.
The Rugby acquisition was the highlight of the year and has already proved accretive to our results with adjusted diluted profit per share growing 10.8% to CAD 1.33 in 2016, from USD 1.20 in 2015. Rugby is a large and successful US wholesale distributor of architectural grade building products to customers that manufacture end-product to the commercial market. With the addition of Rugby’s 28 distribution facilities, Hardwoods has emerged as the number one North American distributor in our sector with a total of 58 distribution facilities, more than 35,000 customers and a pro forma annual sales of approximately CAD 1 billion. During the five-and-a-half months we operated this business in 2016, Rugby contributed revenues of CAD 175.1 million.
Our global product sourcing and commercial market strategies continue to play an important role in our business. We have the size, scale, and strong balance sheet position to pursue growth by acquisition, and the highly fragmented nature of the US architectural building products distribution industry provides numerous opportunities. We will continue to pursue opportunities that take us into new US markets, expand our presence in existing markets, and that can be added on an accretive basis for shareholders.”
In 3Q2016 Hardwoods Distribution achieved sales of USD 235.4 million and EBITDA of USD 13.2 million, generated 5.6% margin.
Earlier Hardwoods Distribution announced that it has, through its’ subsidiary Rugby Holdings LLC purchased substantially all of the assets and assumed certain liabilities of Eagle Plywood and Lumber.
About Hardwoods Distribution:
The company is one of North America’s largest wholesale distributors of hardwood lumber and related sheet good products, operating a network of 62 distribution centers across the region, as well as a hardwood sawmill and kiln drying operation in the U.S.