True Value Announces Third Quarter Results
Third quarter highlights:
- Gross billings of $455.1 million, up 1.4 percent
- Revenue of $346.5 million, up 2.0 percent
- Net margin of $18.7 million, up 21.4 percent
CHICAGO, Oct. 31, 2013 /PRNewswire/ -- True Value Company today reported gross billings of $455.1 million for the quarter ending Sept. 28, 2013, an increase of 1.4 percent or $6.2 million from $448.9 million for the same period a year ago. Revenue was $346.5 million, an increase of 2.0 percent or $6.9 million from $339.6 million a year ago. Comparable store sales to core domestic hardware store outlets were up 2.8 percent at wholesale and 4.5 percent at retail for the quarter.
Led by the strength of its growing Destination True Value (DTV) retail footprint and increased wholesale sales, the cooperative posted a quarterly net margin of $18.7 million, an increase of 21.4 percent or $3.3 million, versus $15.4 million one year ago. In 2013 alone, 25 new DTV stores have opened and 34 stores have remodeled to the co-op's proven DTV format.
"We had a solid third quarter. We have rebounded from the lackluster spring selling season which affected most of the country, and are gaining traction with our retailers' who are adding our new farm, ranch, auto and pet products in their stores," said President and Chief Executive Officer John Hartmann. "These popular categories are driving incremental business, up more than 17 percent so far this year."
For the nine months ending Sept. 28, 2013, True Value reported gross billings of $1,442.7 million, an increase of 0.7 percent or $9.7 million from $1,433.0 million for the same period a year ago. Revenue was $1,070.8 million, an increase of 1.2 percent or $12.2 million from $1,058.6 million a year ago.
Comparable store sales to core domestic hardware store outlets were up 2.0% in the nine-month period. The 2013 year-to-date net margin was $42.9 million, down 6.3 percent or $2.9 million, from $45.8 million one year ago. Total debt of $204.3 million was down $1.5 million from one year ago.
"Our strong profit increase in the quarter was the result of the volume increase and favorable mix and margin rates in the home, seasonal and tool departments," said Hartmann. "We are also building on the momentum of converting members from other co-ops and the addition of 580,000-square feet of new and remodeled DTV retail space."
As previously reported, True Value added its newest affiliate member, Family Farm & Home to its wholesale customer base. Headquartered in Muskegon, Mich., the chain brings 28 existing stores in Michigan and Indiana to the co-op.
True Value Company, based out of its Retail Support Center in Chicago, is one of the world's largest retailer-owned hardware cooperatives. The True Value cooperative represents independent retailer locations worldwide with retail sales in their communities totaling approximately $5.5 billion. Store identities include True Value, Grand Rental Station, Taylor Rental, Party Central, Home & Garden Showplace and Induserve Supply. Additional information on True Value Company and its retail identities is available at www.truevaluecompany.com.
For more information, contact:
True Value Media Relations
SOURCE True Value Company