True Value Announces Second Quarter Results

Monday, July 27, 2009

Second-quarter revenue of $540.7 million, down 5.4 percent
Net margin of $27.8 million, up 50.3 percent

CHICAGO, July 27, 2009 – True Value Company today reported revenue of $540.7 million for the quarter ending July 4, 2009, a decrease of 5.4 percent or $30.6 million from $571.3 million for the same period a year ago. Comp store sales to core domestic hardware store outlets were down ญญญ2.2 percent in the quarter. The cooperative posted a quarterly net margin of $27.8 million, an increase of 50.3 percent or $9.3 million versus $18.5 million one year ago.

For the six months ending July 4, 2009, True Value reported revenue of $983.7 million, a decrease of 5.1 percent or $52.4 million from $1,036.1 million for the same period a year ago. Comp store sales to core domestic hardware store outlets were down 2.4 percent in the six-month period. The 2009 year-to-date net margin was $39.0 million, up 64.6 percent or $15.3 million from $23.7 million one year ago. The 2008 year'’s net margin included a $2.9 million one-time benefit from a final decision in an arbitration matter. Total debt of $147.2 million has declined $61.8 million, or 29.6 percent from a year ago.

"Despite the challenging economy, True Value continues to outperform the home improvement industry – evidenced by a strong performance in lawn and garden, the success of our retail promotional programs, and ongoing new store openings and store remodels," said President and Chief Executive Officer Lyle Heidemann. "Lower fuel costs, a favorable margin mix, and across-the-board expense controls drove our enhanced profitability."

True Value Company, headquartered in Chicago, is one of the world’s largest retailer-owned hardware cooperatives with sales of $2.0 billion in 2008. The True Value cooperative includes approximately 5,000 independent retailer locations worldwide operating under the store identities of 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.

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