True Value Announces First Quarter Results

Monday, May 03, 2010

First-quarter revenue of $428.6 million
Net margin of $8.1 million

CHICAGO, May 3, 2010 — True Value Company today reported revenue of $428.6 million for the quarter ending April 3, 2010, a decrease of 3.2 percent or $14.3 million from $442.9 million for the same period a year ago. The cooperative posted a quarterly net margin of $8.1 million, a decrease of 27.6 percent or $3.1 million versus $11.2 million one year ago.

Revenue in January and February was soft especially in the Northeast and Upper Midwest where weather was considerably milder than last year; however revenue improved significantly in March and has continued through April. Lower volume and slightly lower product margin rates contributed to the profit decline. The product rate decline was influenced by higher levels of promotional product sales and a mix shift of discontinued product sales, which were also at lower average pricing. Total debt decreased 17.6 percent to $165.7 million compared to a year ago.

"The sales trend has been moving in the right direction since early March," said President and Chief Executive Officer Lyle Heidemann. "Both retail and wholesale revenue have seen consistent increases.

"We remain on plan with retailer adoption of our Destination True Value format with 26 additional stores implementing the recommended retail layout so far this year. Moreover, we continue to see an average 12 percent revenue improvement for stores remodeled to this format compared to non-DTV remodeled stores," said Heidemann.

True Value Company, headquartered in Chicago, is one of the world’s largest retailer-owned hardware cooperatives with sales of $1.8 billion in 2009. The True Value cooperative includes approximately 4,900 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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