Hardwoods Distribution, one of North America’s largest wholesale distributors of hardwood lumber and related sheet good products, reported 48.4% increase of Adjusted EBITDA amid 63.3% sales growth in 1Q2017 y-o-y. According to the announcement, the company’s sales accounted for CAD 257.1 million, generating Adjusted EBITDA of CAD 14 million in the period (5.4% margin).
Rob Brown, Hardwoods Distribution President and CEO, commented:
“We achieved record top and bottom-line financial results in the first quarter of 2017 as we benefited from the Rugby acquisition and continued to pursue our business strategies.
The Rugby acquisition, which was completed in July 2016 and brought us 28 US distribution facilities across 40 states, contributed CAD 93.7 million to first quarter sales. The acquisition is proving to be as accretive as we had anticipated.
While approximately 11% of our total sales are currently affected by this [US Trade Case] trade case, we do not expect it to have a significant or long-term impact on our business. Hardwoods sells a wide range of architectural building products including both domestic and import sourced hardwood plywood. We have diverse and long-standing product supply lines for both domestic and import products, and we are confident in our ability to successfully service the requirements of our customers regardless of the final outcome of this trade case.”
In 4Q2016 Hardwoods Distribution reported 42% increase of Adjusted EBITDA amid 41%% sales growth.
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.