HD Supply: Fiscal 2010 results rise
Atlanta — HD Supply Inc. reported net sales for the fiscal 2010 fourth quarter ended January 30 of $1.7 billion, an increase of $107 million, or 6.7%, compared to the fourth quarter of fiscal 2009. Gross profit for the fourth quarter of fiscal 2010 increased by $54 million, or 12.7%, to $480 million, compared to $426 million for the fourth quarter of fiscal 2009. Gross profit for the fourth quarter of fiscal 2010 was 28.3% of net sales versus 26.8% of net sales for the fourth quarter of fiscal 2009. Operating loss for the fourth quarter of fiscal 2010 was $11 million, an improvement of $87 million compared to an operating loss of $98 million for the fourth quarter of fiscal 2009. Liquidity at the end of the fourth quarter of fiscal 2010 was $1.3 billion, an increase of approximately $426 million versus the end of fiscal 2009.
Consolidated loss from continuing operations for the fourth quarter of fiscal 2010 was $203 million, compared to a loss from continuing operations of $168 million for the same period in fiscal 2009. Loss from continuing operations in the fourth quarter of fiscal 2010 and fiscal 2009 included non-cash charges of $88 million and $1 million, respectively, to increase the valuation allowance against the company’s deferred tax assets. Excluding the 2010 and 2009 charges for the deferred tax valuation allowances, adjusted loss from continuing operations of $115 million in the fourth quarter of fiscal 2010 improved $52 million, as compared with the adjusted loss from continuing operations of $167 million in the fourth quarter of fiscal 2009.
“In 2010, our associates’ continued focus on our customers and our significant investments in the company to accelerate sales and growth momentum enabled us to gain market share and report year-over-year improved financial results, the first since 2007. Furthermore, our liquidity remains very strong, which allows us to meet our commitments and continuously invest in profitable growth,” said CEO Joe DeAngelo. “These investments and our associates’ outstanding performance make HD Supply the distributor of choice for our customers.”
Net sales for the full year of fiscal 2010 were $7.5 billion, an increase of $59 million, or 0.8%, compared to the full year of fiscal 2009. Gross profit increased by $81 million, or 4.1%, to $2.1 billion in fiscal 2010 versus gross profit of $2.0 billion in fiscal 2009. Gross profit for full-year fiscal 2010 was 27.8% of net sales versus 26.9% of net sales for full-year fiscal 2009. Operating income in the full year of fiscal 2010 was $32 million, an increase of $354 million compared to the full year of fiscal 2009, which included a $224 million pre-tax
Excluding the goodwill impairment charge in fiscal 2009, adjusted operating income for fiscal 2010 increased $130 million, compared to fiscal 2009.
Consolidated loss from continuing operations for the full year of fiscal 2010 was $619 million, compared to a loss from continuing operations of $505 million for the full year of fiscal 2009. Loss from continuing operations in fiscal 2010 and fiscal 2009 included $230 million and $7 million, respectively, of non-cash charges to increase the valuation allowance against the company’s deferred tax assets. In addition, loss from continuing operations in fiscal 2009 included a $224 million pre-tax goodwill impairment charge ($186 million after-tax) and a non-operating, non-cash pre-tax gain of $200 million ($123 million after-tax) resulting from the extinguishment of senior subordinated debt. Excluding these items, adjusted loss from continuing operations of $389 million in fiscal 2010 improved $46 million as compared with the adjusted loss from continuing operations of $435 million in fiscal 2009.
Visit www.hdsupply.com.
Bradford White opens 24/7 call center
Ambler, Pa. — Bradford White recently opened a new 24/7 warranty and technical service support center at its Middleville, Mich., manufacturing facility. The call center opened on February 28, and has been fielding night and weekend calls since then. The new center operates 24 hours a day, seven days a week, and is fully staffed with both warranty specialists and technical service experts. The warranty specialists all have training and backgrounds in customer service. The technical staff has undergone extensive water heater field training, and many were previously service technicians prior to joining the support team.
“This is an exciting move for Bradford White, and we are proud to have very knowledgeable people ready with the solutions our customers need whenever they need them,” said Dustin Bowerman, Bradford White director of technical services.
Visit www.bradfordwhite.com.
Southern Pipe & Supply owner Davidson earns Ellis Island award
New York — On May 7, Marty Davidson, chairman and owner of Southern Pipe & Supply, was honored by the National Ethnic Coalition (NECO) at the 25th anniversary of the Ellis Island Medals of Honor ceremony on Ellis Island. Ellis Island was the gateway for millions of immigrants to the United States from 1892 to 1954 and is the symbol of American immigration and the immigrant experience
Each year since 1986, NECO — whose mission is to honor our diverse past, to advocate for positive change in the present and to build strong leaders for the future — has sponsored the Ellis Island Medals of Honor, which pays tribute to the ancestry groups that comprise America’s unique cultural mosaic. The medals are presented to American citizens of diverse origins for their outstanding contributions to their communities, their nation and the world.
Marty Davidson is a well-deserving recipient of the Ellis Island Medal of Honor. Marty’s grandfather, Louis Davidson, was born in 1876 in Russia. He came to the U.S. in the early 1900s and settled in Meridian, Miss. That journey was the genesis of Southern Pipe and Supply Company, a privately held plumbing supply house, now in its 72nd year of operation and its fourth generation of family management.
Louis Davidson started St. Louis Junk Company in Meridian. In addition to junk, the company started selling secondhand bath tubs. In 1938, Louis, with his two sons, Sammie and Meyer, and a secretary, opened Southern Pipe and Supply to distribute plumbing supplies.
Meyer’s son Marty started stocking shelves at Southern Pipe when he was five years old and continued working in the summers until he went to college at Tulane University in 1958. He came to work full time in 1962, when he was 22 years old; at that time, Southern Pipe had four branches in three states. In 1968, Marty purchased the company from his father and uncle and became president at the age of 28.
In addition to the huge risk associated with buying Southern Pipe, Marty had a major personal distraction. In June of 1968, two Ku Klux Klansmen attempted to bomb Meyer Davidson’s home, because of his public stance against the bombing of synagogues and churches in Mississippi. Marty, his wife and two children were supposed to be at his father’s house that night, but were warned by the FBI about the attempted bombing. (A book, Terror in the Night, was written by Pulitzer Prize winner Jack Nelson about this incident.)
Marty concentrated on building Southern Pipe and Supply into a larger company. He proceeded to open a number of new branches and to branch out to several new states. Today, 48 years after Marty started, Southern Pipe and Supply has grown from four branches in three states to 93 branches in seven states. In 2002, Marty’s son Jay was named president of the company, thus becoming the fourth generation of Davidsons to lead it. This was a milestone, because statistics have shown that only 3% of family businesses make it to the third generation.
Over the years, Southern Pipe has furnished plumbing supplies to such diverse projects as the Superdome in New Orleans, Caesar’s Palace in Las Vegas, the U. S. Embassy in Bombay, India, and the Centers for Disease Control in Atlanta, Ga. It has sold enough plumbing pipe to circle the earth 40 times. Through 60 showrooms, it has supplied plumbing fixtures for homes throughout the South. Southern Pipe was named one of the best large companies to work for in Mississippi in 2007, 2008 and 2009. This story could only happen in the U.S., where an immigrant’s journey from Russia evolved into a family company the size of Southern Pipe and Supply.
Marty Davidson joins a prestigious group of honorees. Past Ellis Island Medal of Honor recipients include six United States presidents, Nobel Prize winners, athletes, leaders of industry, artists and others whose work has made a lasting impact on humanity.
The Ellis Island Medal of Honor ranks among the nation’s most prestigious awards. The medals are awarded annually to outstanding American citizens, from all walks of life, who have distinguished themselves through their significant contributions to this country. The U.S. Senate and House of Representatives have officially recognized the Ellis Island Medals of Honor, and each year the recipients are listed in the Congressional Record. To date, more than 1,800 American citizens have received Ellis Island Medals of Honor.
According to NECO chairman Nasser J. Kazeminy, “NECO is about investing in the power of caring; whereas people from all cultures and walks of life stand together arm in arm to make a real difference in our world through shared compassion and philanthropy, not only for now but also to inspire future generations, who will continue to preserve and build upon the legacy that each of our cultures has contributed. With our medalists, we see America at its best. We see every color, every race, from so many walks of life, together, celebrating the magic that is America. Our medalists’ influence and achievements truly inspire and touch the lives of people everywhere.”
Visit www.neco.org.