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HDI Announces Record Third Quarter 2021 Results Langley , B.C. , November 8 , 2021 / CNW / - Hardwoods Distribution Inc. ( " HDI " or the " Company " ) today announced financial results for the three and nine months ended September 30 , 2021. HDI is one of North America's largest suppliers of specialty building products to fabricators , home centers and builders servicing the new residential , repair and remodel , and commercial construction end - markets . The Company currently operates a network of 83 distribution facilities in the United States and Canada . All amounts are shown in United States dollars ( " U.S. $ " or " $ " ) , unless otherwise noted . Third Quarter Highlights Third quarter sales grew 99.1 % to $ 471.7 million , a year - over - year increase of $ 234.7 million . Organic sales growth in Q3 was 42.6 % while acquisitions contributed an additional 58.1 % . Gross profit climbed 158.0 % , or $ 71.2 million , to $ 116.2 million , with gross profit margin percentage increasing to 24.6 % , from 19.0 % in the same period last year . Operating expenses were well controlled , and as a percentage of sales were 14.3 % , as compared to 14.2 % in Q2 2020 . Profit per share increased significantly to a record $ 1.58 , from $ 0.37 in Q2 2020 , an increase of 327.0 % . Adjusted EBITDA climbed 226.2 % to a record $ 63.8 million , from $ 19.6 million during the same period in 2020 . Cash flow from operating activities , before changes in working capital , per share increased by $ 1.78 in the third quarter to $ 2.42 , from $ 0.64 in the same period last year . The Board of Directors declared a quarterly dividend of $ 0.12 per share , payable on January 28 , 2022 to shareholders of record as at January 17 , 2022. This represents a 20 % increase to the previous quarterly dividend amount . HDI completed the purchase of Novo Building Products Holdings LLC ( " Novo " ) , a transformative acquisition which is expected to have a significant and positive impact on the Company going forward . The Novo acquisition closed on July 30 , 2021 . Effective January 1 , 2021 , HDI began reporting results in U.S. dollars . Given over 90 % of the Company's revenues come from the U.S. , this is considered an appropriate currency for reporting purposes . Comparative numbers have been restated to conform with this presentation . " Our third quarter financial performance was exceptionally strong even after taking into account the more favorable operating conditions in the current period , as compared to the significant pandemic - related business disruptions that impacted sales in the same period last year , " said Rob Brown , HDI's President and CEO . " We are also pleased that our Board of Directors has approved a 20 % increase in our dividend , a decision that is supported by strong execution of our strategic plan and growth of our earnings and cash flows . " " Following on an excellent first half of 2021 , we maintained a record - setting pace for sales , gross margins , and profitability for Q3 . We continue to execute on the operating and strategic fronts , while capitalizing on strong demand in our end - markets . Our record third quarter gross margin percentage of 24.7 % is a result of rising product prices being efficiently passed through to benefit the bottom line , as well as the inclusion of Novo which carries a higher gross margin percentage . In addition to the top line and gross margin gains , we are managing expenses tightly across the organization and this further translated through to strong growth in our profit performance . " " The Novo acquisition , which we closed during the quarter , plays an important role in HDI's growth trajectory as one of North America's largest suppliers of specialty building products to fabricators , home centers and builders servicing the new residential , repair and remodel , and commercial construction end - markets . Based on our first few months of combined operations with Novo , we have now increased our expectation for Novo - related annualized 2021 revenues and EBITDA to over $ 670 million and $ 60 million respectively . Through our strategic focus on acquisitions since 2015 , we now bring new solutions to an expanded set of customers across more high growth 1