HD Supply Holdings, Inc. (NASDAQ:HDS) Q1 2019 Earnings Conference Call Transcript
Jun 11, 2019 • 08:00 am ET
Good day, ladies and gentlemen, and welcome to the HD Supply First Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, there will be a question-and-answer session and instructions will follow at that time.
(Operator Instructions) As a reminder, this conference call is being recorded.
I'd now like to turn the conference over to Charlotte McLaughlin, Investor Relations. Ma'am you may begin.
Thank you, Shannon. Good morning, ladies and gentlemen, and welcome to the HD Supply Holdings' 2019 First Quarter Earnings Call.
As a reminder, some of our comments today may be forward-looking statements based on management's beliefs and assumptions and information currently available to management at this time. These beliefs are subject to known and unknown risks and uncertainties, many of which may be beyond our control, including those detailed in our periodic SEC filings. Please note that the Company's actual results may differ materially from those anticipated, and we undertake no obligation to update these statements.
Reconciliations of certain non-GAAP financial metrics with their corresponding GAAP measures are available at the end of our slide presentation and in our 2019 First quarter earnings release, which is available on our IR website at www.hdsupply.com.
Joe DeAngelo, our CEO, will lead today's call, while Evan Levitt, our CFO, will provide additional color on our recent financial performance and our expectations for the remainder 2019. There will be an opportunity for Q&A. For those participating, please limit your remarks to one question and one follow up, if necessary. Thank you for your continued interest in HD Supply.
And with that, I will now turn the call over to Joe DeAngelo.
Joseph J. DeAngelo
Well, thank you, Charlotte. Good morning, everyone. Thank you for joining us today for our first quarter 2019 earnings call. As always, it's my privilege to share our Company's results with you on behalf of the over 11,000 HD Supply associates who work hard every day as one team driving customer success and value creation.
Turning to Page 3, the team delivered a strong performance in the first quarter after particularly weak February. We delivered exactly what we predicted when we communicated to markets back in March. Sales and earnings performance were in line with our expectations.
We delivered 7% sales growth for the first quarter of fiscal 2019, 6% sales growth on an organic basis and a 7% adjusted EBITDA growth in the period, while continuing to generate strong free cash flow of $540 million on a trailing 12 month basis.
During the period, we faced several external events that were beyond our control, February brought significant weather disruptions, particularly to our Construction & Industrial business. As many in our industry have pointed out, this was the second wettest February on record, and as a result, much of the construction activity in California and the Pacific Northwest came to a halt.
We work diligently with our customers to ensure that we provided them with the support needed to get them back to work, but we