Net sales for 2013 of $8.5 billion, increased $732 million or 9.4 percent compared to 2012.
The net sales increase was primarily due to growth initiatives at each of the company’s businesses and, to a lesser extent, increases in market volume and recent acquisitions, partially offset by unfavorable weather conditions, particularly the severe winter weather experienced during the fourth quarter of fiscal 2013 and the unusually cooler weather in the summer months, impacting HVAC-related sales.
Gross profit increased $258 million, or 11.6 percent, to $2.475 billion for adjusted fiscal 2013. Gross profit increased to 29.2 percent of net sales in adjusted fiscal 2013. Gross profit increased to 29.2 percent of net sales in adjusted fiscal 2013, up 60 basis points from 28.6 percent in adjusted fiscal 2012. Operating income increased $229 million, or 84.5 percent, during adjusted fiscal 2013, as compared to adjusted fiscal 2012.
Net loss for fiscal 2013 was $218 million, which included an $87 million loss on extinguishment and modification of debt and a $12 million restructuring charge. Net loss for fiscal 2012 was $1.179 billion, which included a $709 million loss on extinguishment of debt and a $152 million impairment charge.
Adjusted net income for fiscal 2013 was $99 million, an improvement of $228 million a compared to an adjusted net loss of $129 million in fiscal 2012. The increase was attributable to sales growth, improving gross margins and a reduction in interest expense. Adjusted net income per diluted share in fiscal 2013 was 58 cents per share, as compared to an adjusted net loss per diluted share of 99 cents in fiscal 2012.
As of Feb. 2, HD Supply’s combined liquidity of approximately $994 million was comprised of $115 million in cash and cash equivalents and $879 million in additional available borrowings.
Fourth quarter results
Net sales for the fourth quarter 2013 were $1.9 billion, an increase of $125 million, or 6.9 percent, as compared to adjusted fourth quarter 2012.
Gross profit for the adjusted fourth quarter fiscal 2013 increased by $45 million, or 8.7 percent compared to the adjusted fourth quarter fiscal 2012.
Operating income for the adjusted fourth quarter fiscal 2013 was $87 million, an increase of $59 million as compared to the adjusted fourth-quarter fiscal 2012. The improvement was driven by the reduction in depreciation and amortization expense and, to a lesser extent, a reduction in selling, general and administrative expenses as a percentage of sales and improvements in gross margins.
Net loss for the fourth quarter was $66 million, which included a $12 million restructuring charge. Net loss for the fourth quarter the previous year was $713 million, which included a $489 million loss on extinguishment and modification of debt and a $152 million impairment charge.