HDS HD Supply

HD Supply ( is one of the largest industrial distributors in North America. The company provides a broad range of products and value-add services to approximately 500,000 customers with leadership positions in the maintenance, repair and operations and specialty construction sectors. Through approximately 270 branches and 44 distribution centers in the U.S. and Canada, the company's approximately 11,500 associates provide localized, customer-tailored products, services and expertise.

Company profile

Fiscal year end
Industry (SIC)


4 Dec 20
17 Oct 21
31 Jan 22
Quarter (USD)
Aug 20 May 20 Nov 19 Aug 19
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD)
Feb 20 Feb 19 Jan 18 Jan 17
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from HD Supply earnings reports.

Cash burn rate (estimated) Burn method: Change in cash Burn method: Operating income/loss Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 71M 71M 71M 71M 71M 71M
Cash burn (monthly) 25.33M (positive/no burn) (positive/no burn) (positive/no burn) (positive/no burn) (positive/no burn)
Cash used (since last report) 367.34M n/a n/a n/a n/a n/a
Cash remaining -296.34M n/a n/a n/a n/a n/a
Runway (months of cash) -11.7 n/a n/a n/a n/a n/a

Beta Read what these cash burn values mean

Financial report summary

  • We are subject to inherent risks of the maintenance, repair and operations market and the non-residential and residential construction markets, including risks related to general economic conditions.
  • We may be unable to maintain profitability.
  • We may be required to take impairment charges relating to our operations which could impact our future operating results.
  • We occupy most of our locations under long-term non-cancelable leases. We may be unable to renew leases on favorable terms or at all. Also, if we close a location, we may remain obligated under the applicable lease.
  • The markets in which we operate are highly competitive and fragmented, and demand for our products and services could decrease if we are not able to compete effectively.
  • Our competitors continue to consolidate, which could cause markets to become more competitive and could negatively impact our business.
  • The loss of our significant customers could adversely affect our financial condition.
  • The majority of our Net sales are credit sales which are made primarily to customers whose ability to pay is dependent, in part, upon the economic strength of the industry and geographic areas in which they operate, and the failure to collect monies owed from customers could adversely affect our financial condition.
  • Future strategic transactions could impact our reputation, business, financial position, results of operations and cash flows, and we may not achieve the acquisition component of our growth strategy.
  • The maintenance, repair and operations market and the non-residential and residential construction markets are seasonal and cyclical.
  • Fluctuating commodity prices may adversely impact our results of operations.
  • If petroleum prices increase, our results of operations could be adversely affected. Conversely, prolonged weakness in the oil and gas industry could negatively impact our financial condition, results of operations and cash flows.
  • Product shortages may impair our operating results.
  • We rely on third-party suppliers and long supply chains. If we fail to identify and develop relationships with a sufficient number of qualified suppliers, or if there is a significant interruption in our logistics network and supply chains, our ability to timely and efficiently access products that meet our standards for quality and service our customers could be adversely affected.
  • Evolving trade policies could continue to make sourcing product from foreign countries difficult and costly.
  • We have substantial fixed costs and, as a result, our operating income is sensitive to changes in our Net sales.
  • The development of alternatives to distributors in the supply chain could cause a decrease in our sales and operating results and limit our ability to grow our business.
  • Because our business is working capital intensive, we rely on our ability to manage our product purchasing and customer credit policies.
  • The implementation of our technology initiatives could disrupt our operations in the near term, and our technology initiatives might not provide the anticipated benefits or might fail.
  • Interruptions in the proper functioning of our IT systems, including from cybersecurity threats, could disrupt operations and cause unanticipated increases in costs or decreases in revenues, or both.
  • Our costs of doing business could increase as a result of changes in U.S. federal, state or local regulations.
  • The nature of our business exposes us to construction defect and product liability claims as well as other legal proceedings.
  • If we become subject to material liabilities under our self-insured programs, our financial results may be adversely affected.
  • Our success depends upon our ability to attract, train and retain highly qualified associates and key personnel.
  • Fluctuations in foreign currency exchange rates may reduce our revenues and profitability.
  • If we are unable to protect our intellectual property rights, or we infringe on the intellectual property rights of others, our ability to compete could be negatively impacted.
  • Income tax payments may ultimately differ from amounts currently recorded by us. Future tax law changes may materially increase our prospective income tax expense.
  • Our NOL carryforwards could be limited if we experience an “ownership change,” as defined in the Code.
  • We may not be able to identify new products and new product lines and integrate them into our distribution network, which may impact our ability to compete.
  • We could incur significant costs in complying with environmental, health and safety laws or permits or as a result of satisfying any liability or obligation imposed under such laws or permits.
  • We may be affected by global climate change or by legal, regulatory or market responses to such potential change.
  • Failure to maintain effective internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act could materially and adversely affect us.
  • Future changes in financial accounting standards may significantly change our reported results of operations.
  • We have substantial debt and may incur substantial additional debt, which could adversely affect our financial health, reduce our profitability, limit our ability to obtain financing in the future and pursue certain business opportunities and reduce the value of your investment.
  • Despite our current level of indebtedness, we may still be able to incur substantially more debt. This could further exacerbate the risks to our financial condition.
  • The agreements and instruments governing our debt contain restrictions and limitations that could significantly impact our ability to operate our business and adversely affect the holders of our common stock.
  • We may have future capital needs and may not be able to obtain additional financing on acceptable terms.
  • Increases in interest rates would increase the cost of servicing our debt and could reduce our profitability.
  • We may not be able to repurchase our existing notes upon a change of control.
  • Holdings is a holding company with no operations of its own, and it depends on its subsidiaries for cash to fund all of its operations and expenses, including to buy back capital stock and make future dividend payments, if any.
  • Anti-takeover provisions in our charter documents and Delaware law could discourage, delay or prevent a change in control of our company and may affect the trading price of our common stock.
  • We may not determine to pay dividends on our common stock and, consequently, your ability to achieve a return on your investment will depend on appreciation in the price of our common stock.
  • The proposed spinoff of our White Cap business is contingent upon the satisfaction of a number of conditions, may require significant time and attention of our management and may have an adverse effect on us if not completed.
  • We may be unable to achieve some or all of the benefits that we expect to achieve from the spinoff.
  • If the proposed spinoff of our White Cap business is completed, we expect that the trading price of our common stock will decline.
  • Following the spinoff, the combined value of your common stock in HD Supply and White Cap may trade at an aggregate price less than what the Company’s common stock might trade at had the spinoff not occurred.
  • The spinoff could result in substantial tax liability.
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