Select Interior Concepts Announces 2019 Second Quarter Financial Results
Atlanta -- Select Interior Concepts announced its financial results for the second quarter ended June 30.
“We were pleased with our overall performance driven by market share gains and solid execution," said Tyrone Johnson, CEO. "Our team remains committed to generating improvements across all areas of our rapidly growing business. In our Architectural Services Group segment, we realized strong growth from price/mix and volume gains. In our Residential Design Services segment, our backlog has strengthened each month through June 2019 and we continue to benefit from our diversification strategy. Excluding $1.3 million of incremental corporate and public company infrastructure costs, Adjusted EBITDA margin increased by approximately 20 basis points year over year in the second quarter. We are excited about our progress to-date and our plan to continue scaling and capturing share in attractive markets.”
Net sales for the second quarter of 2019 increased by 26.8% to $158.3 million, compared to net sales of $124.9 million for the second quarter of 2018. Residential Design Services segment sales increased 35.9% and Architectural Surfaces Group segment sales increased 16.4%, compared to the second quarter of 2018. Net sales increased on an organic basis by $2.0 million, or 1.6%, driven by growth in ASG partially offset by softness in RDS’s Southern California market. Acquisitions added $31.5 million to net sales, primarily in the RDS segment.
Gross profit for the second quarter of 2019 increased by 28.4% to $44.2 million, compared to $34.4 million for the second quarter of 2018. Gross margin for the second quarter of 2019 was 27.9%, compared to 27.6% for the second quarter of 2018. The increase in gross profit and improvement in gross margin were primarily a result of acquisitions and favorable shifts in product mix as well as price increases.
For the second quarter of 2019, net income was $1.2 million, compared to a net loss of $0.1 million for the second quarter of 2018. Net income for the second quarter of 2019 includes $1.0 million of other expense, which primarily results from a change in the fair value of earnout liabilities for completed acquisitions.
EBITDA for the second quarter of 2019 increased 59.0% to $12.2 million, compared to EBITDA of $7.7 million for the second quarter of 2018. Adjusted EBITDA, which excludes the impact of equity compensation and certain non-recurring costs, for the second quarter of 2019 increased by 20.3% to $16.6 million, compared to $13.8 million for the second quarter of 2018.
For more information, visit www.selectinteriorconcepts.com.