HD Supply 8-K Other Events

HD SUPPLY, INC. EXHIBIT 99.3

Quarterly Results Revised for Discontinued Operations

During fiscal 2011, HD Supply sold its Plumbing/HVAC and SESCO/QUESCO operations. In the first quarter of fiscal 2012, HD Supply sold its Industrial Pipe, Valve and Fittings (“IPVF”) operations. In accordance with Accounting Standards Codification 205-20, Discontinued Operations, the results of these operations and the gain on sale of the businesses are classified as discontinued operations. The presentation of discontinued operations includes revenues and expenses of the discontinued operations and gain on the sale of businesses, net of tax, as one line item on the Consolidated Statements of Operations for all periods presented.

The following tables present HD Supply’s quarterly results of operations for fiscal 2011, fiscal 2010, and fiscal 2009, revised to reflect the Plumbing/HVAC, SESCO/QUESCO, and IPVF operations as discontinued operations for all periods presented (dollars in millions, unaudited):

	Q1-11		Q2-11		Q3-11		Q4-11		Fiscal     2011
Net Sales		$ 1,608		$ 1,875		$ 1,893		$ 1,652		$ 7,028
Cost of Sales		1,148		1,342		1,358		1,166		5,014
Gross Profit		460		533		535		486		2,014
Operating Expenses:
Selling, General & Administrative		370		385		389		388		1,532
Depreciation & Amortization		82		82		81		82		327
Total Operating Expenses		452		467		470		470		1,859
Operating Income		8		66		65		16		155
Interest Expense		158		159		160		162		639
Other (income) expense, net		(1)		–		–		1		–
Income (loss) from continuing operations before income taxes		(149)		(93)		(95)		(147)		(484)
Income Tax (Benefit) Expense		20		15		24		20		79
Income (Loss) from continuing operations		(169)		(108)		(119)		(167)		(563)
Income (loss) from discontinued operations, net of tax		5		7		14		(6)		20
Net Income (Loss)		$ (164)		$ (101)		$ (105)		$ (173)		$ (543)
EBITDA		$ 92		$ 148		$ 147		$ 97		$ 484
Adjusted EBITDA		$ 96		$ 155		$ 155		$ 102		$ 508

QUARTERLY RESULTS HD SUPPLY, INC.

	Q1-10		Q2-10		Q3-10		Q4-10		Fiscal     2010
Net Sales		$ 1,552		$ 1,719		$ 1,724		$ 1,454		$ 6,449
Cost of Sales		1,109		1,231		1,236		1,032		4,608
Gross Profit		443		488		488		422		1,841
Operating Expenses:
Selling, General & Administrative		371		370		365		349		1,455
Depreciation & Amortization		87		87		84		83		341
Restructuring		5		3		–		–		8
Total Operating Expenses		463		460		449		432		1,804
Operating Income		(20)		28		39		(10)		37
Interest Expense		156		155		153		159		623
Other (income) expense, net		4		(2)		(1)		(2)		(1)
Income (loss) from continuing operations before income taxes		(180)		(125)		(113)		(167)		(585)
Income Tax (Benefit) Expense		22		(12)		(15)		33		28
Income (Loss) from continuing operations		(202)		(113)		(98)		(200)		(613)
Income (loss) from discontinued operations, net of tax		–		(2)		(1)		(3)		(6)
Net Income (Loss)		$ (202)		$ (115)		$ (99)		$ (203)		$ (619)
EBITDA		$ 64		$ 117		$ 125		$ 75		$ 381
Adjusted EBITDA		$ 78		$ 124		$ 130		$ 79		$ 411
	Q1-09		Q2-09		Q3-09		Q4-09		Fiscal 2009
Net Sales		$ 1,602		$ 1,684		$ 1,657		$ 1,370		$ 6,313
Cost of Sales		1,166		1,202		1,192		985		4,545
Gross Profit		436		482		465		385		1,768
Operating Expenses:
Selling, General & Administrative		368		373		356		356		1,453
Depreciation & Amortization		91		88		91		89		359
Goodwill impairment		–		–		219		–		219
Restructuring		9		–		2		10		21
Total Operating Expenses		468		461		668		455		2,052
Operating Income		(32)		21		(203)		(70)		(284)
Interest Expense		151		150		148		153		602
Other (income) expense, net		(198)		(5)		(1)		(4)		(208)
Income (loss) from continuing operations before income taxes		15		(124)		(350)		(219)		(678)
Income Tax (Benefit) Expense		9		(36)		(102)		(69)		(198)
Income (Loss) from continuing operations		6		(88)		(248)		(150)		(480)
Income (loss) from discontinued operations, net of tax		4		(1)		(19)		(18)		(34)
Net Income (Loss)		$ 10		$ (89)		$ (267)		$ (168)		$ (514)
EBITDA		$ 259		$ 115		$ (110)		$ 24		$ 288
Adjusted EBITDA		$   75		$ 117		$   115		$ 36		$ 343

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QUARTERLY RESULTS HD SUPPLY, INC.

Reconciliation of Net Income (Loss) to Adjusted EBITDA

	Q1-11		Q2-11		Q3-11		Q4-11		Fiscal     2011
Net Income (Loss)		$ (164)		$ (101)		$ (105)		$ (173)		$ (543)
Less income (loss) from discontinued operations, net of tax		5		7		14		(6)		20
Income (loss) from continuing operations		(169)		(108)		(119)		(167)		(563)
Interest expense, net		158		159		160		162		639
Provision (benefit) for income taxes		20		15		24		20		79
Depreciation and amortization		83		82		82		82		329
EBITDA		92		148		147		97		484
Adjustments to EBITDA
Other (income) expense, net (i)		(1)		–		–		1		–
Stock-based compensation (iv)		4		5		7		4		20
Management fee & related expenses paid to Equity Sponsors (v)		1		2		1		1		5
Other		–		–		–		(1)		(1)
Adjusted EBITDA		$ 96		$ 155		$ 155		$ 102		$ 508
	Q1-10		Q2-10		Q3-10		Q4-10		Fiscal 2010
Net Income (Loss)		$ (202)		$ (115)		$ (99)		$ (203)		$ (619)
Less income (loss) from discontinued operations, net of tax		–		(2)		(1)		(3)		(6)
Income (loss) from continuing operations		(202)		(113)		(98)		(200)		(613)
Interest expense, net		156		155		153		159		623
Provision (benefit) for income taxes		22		(12)		(15)		33		28
Depreciation and amortization		88		87		85		83		343
EBITDA		$ 64		$ 117		$ 125		$ 75		$ 381
Adjustments to EBITDA
Other (income) expense, net (i)		4		(2)		(1)		(2)		(1)
Restructuring (iii)		5		3		–		–		8
Stock-based compensation (iv)		4		4		5		4		17
Management fee & related expenses paid to Equity Sponsors (v)		1		2		1		1		5
Other		–		–		–		1		1
Adjusted EBITDA		$ 78		$ 124		$ 130		$ 79		$ 411

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QUARTERLY RESULTS HD SUPPLY, INC.

	Q1-09		Q2-09		Q3-09		Q4-09		Fiscal     2009
Net Income (Loss)		$ 10		$ (89)		$ (267)		$ (168)		$ (514)
Less income (loss) from discontinued operations, net of tax		4		(1)		(19)		(18)		(34)
Income (loss) from continuing operations		6		(88)		(248)		(150)		(480)
Interest expense, net		151		150		148		153		602
Provision (benefit) for income taxes		9		(36)		(102)		(69)		(198)
Depreciation and amortization		93		89		92		90		364
EBITDA		$ 259		$ 115		$ (110)		$ 24		$ 288
Adjustments to EBITDA
Other (income) expense, net (i)		(198)		(5)		(1)		(4)		(208)
Goodwill impairment (ii)		–		–		219		–		219
Restructuring (iii)		9		–		2		10		21
Stock-based compensation (iv)		4		5		4		5		18
Management fee & related expenses paid to Equity Sponsors (v)		1		2		1		1		5
Adjusted EBITDA		$   75		$  117		$  115		$  36		$  343

    (i) Represents the gain/loss on extinguishment of debt, the gains/losses associated with the changes in fair value of interest rate swap contracts not accounted for under hedge accounting, and other non-operating income/expense.

    (ii) Represents the non-cash impairment charge of goodwill recognized during fiscal 2009 in accordance with Accounting Standards Codification 350, Intangibles – Goodwill and Other.

    (iii) Represents the costs incurred for employee reductions and branch closures or consolidations. These costs include occupancy costs, severance, and other costs incurred to exit a location.

    (iv) Represents the stock-based compensation costs for stock options.

    (v) The Company entered into a management agreement whereby the Company pays the Equity Sponsors a $5 million annual aggregate management fee and related expenses through August 2017.

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QUARTERLY RESULTS HD SUPPLY, INC.

Power Solutions Quarterly Results

During fiscal 2011, HD Supply merged its Electrical operating segment into its Utilities operating segment, and titled the merged segment Power Solutions.

The following tables present Power Solutions’ quarterly results of operations for fiscal 2011, fiscal 2010, and fiscal 2009, revised to reflect the merged segment for all periods presented (dollars in millions, unaudited):

	Q1-11		Q2-11		Q3-11		Q4-11		Fiscal     2011
Net sales		$ 395		$ 415		$ 429		$ 386		$ 1,625
Operating income (loss)		$ 6		$ 8		$ 11		$ 1		$ 26
Depreciation and amortization		6		6		6		6		24
Adjusted EBITDA(1)		$ 12		$ 14		$ 17		$ 7		$ 50
Capital Expenditures		$   1		$ 1		$ 2		$ 1		$ 5
	Q1-10		Q2-10		Q3-10		Q4-10		Fiscal 2010
Net sales		$ 340		$ 370		$ 386		$ 366		$ 1,462
Operating income (loss)		$ 4		$ 7		$ 9		$ 5		$ 25
Depreciation and amortization		6		6		6		6		24
Adjusted EBITDA(1)		$ 10		$ 13		$ 15		$ 11		$ 49
Capital Expenditures		$ –		$ 1		$ –		$ 1		$ 2
	Q1-09		Q2-09		Q3-09		Q4-09		Fiscal 2009
Net sales		$ 378		$ 363		$ 349		$ 320		$ 1,410
Operating income (loss)		$ 7		$ 5		$ (51)		$ (3)		$ (42)
Depreciation and amortization		6		7		6		6		25
Goodwill impairment		–		–		54		–		54
Restructuring		–		–		2		1		3
Adjusted EBITDA(1)		$ 13		$ 12		$ 11		$ 4		$ 40
Capital Expenditures		$ –		$ 1		$ –		$ 2		$ 3

⁽¹⁾ The Company does not allocate interest and taxes to its segments.

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