HD Supply, the diverse construction supply firm that includes the Los Angeles area's HD Supply Repair & Remodel stores, reported today it swung to a consolidated net loss of $202 million in its fiscal first quarter ended May 2 from net income of $10 million in the year-earlier period.
This year's loss came in part because HD Supply made an $84 million noncash charge in its valuation allowance for deferred tax assets, while last year's profit included a non-operating pretax gain of $200 million from the extinguishment of senior subordinated debt and a $2 million charge to increase the valuation allowance. Excluding those unusual items, HD Supply said it incurred a net loss of $118 million in this year's fiscal first quarter vs. a $11 million net loss a year earlier.
Net sales at the Atlanta-based company dropped 5.7% to $1.8 billion. It didn't break down results by group.
"I am exceptionally proud of the HD Supply teams' execution, and although our industry remains challenged, we are beginning to see signs of recovery," chief executive officer Joe DeAngelo said in a statement. "Our growing liquidity and the extension of the majority of our debt maturities to 2014 enables continued investment in our business to accelerate future profitable growth."
HD Supply operates in three market sectors: infrastructure and energy; maintenance, repair and improvement; and specialty construction. Aside from HD Supply Repair & Remodel, its brand names in residential and commercial construction include White Cap Construction Supply, Crown Bolt, and HD Plumbing. It bills itself as particularly strong in serving multifamily housing's maintenance needs.