Hardwoods Distribution, one of North America’s largest wholesale distributors of hardwood lumber and related sheet good products, reported 68.3 % increase of Adjusted EBITDA amid 75.3% sales growth in 2Q2017 y-o-y. According to the announcement, the company’s sales accounted for CAD 275.3 million, generating Adjusted EBITDA of CAD 17.2 million in the period (6.3% margin).
Rob Brown, Hardwoods Distribution President and CEO, commented:
“We achieved the best quarterly top and bottom line results in Hardwoods’history as we continued to benefit from accretive acquisitions and achieved solid organic growth.
Our strong financial position and record results have given us an opportunity to provide shareholders with a 16% increase in our quarterly dividend, while continuing to have the financial ability to invest in growing the business and pursuing acquisitions that create long term value for shareholders. We acted on one such acquisition opportunity subsequent to the quarter end with our purchase of Downes and Reader Hardwood Company on July 17, 2017. This transaction brings us an additional four distribution facilities in the US Northeast, 2400 new customers, and is expected to generate annual revenue of USD 25 million going forward.”
In 1Q2017 Hardwoods Distribution decreased Adjusted EBITDA margin to 5.4%.
Earlier Hardwoods Distribution Hardwoods Distribution acquired Downes & Reader Hardwood Company in the US.
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.