Second quarter highlights:
- Gross billings of $543.3 million, up 1.4%
- Revenue of $411.5 million, up 1.0%
- Net margin of $23.8 million, up 7.2%
CHICAGO, July 29, 2013 – True Value Company today reported gross billings of $543.3 million for the quarter ending June 29, 2013, up 1.4 percent or $7.3 million from $536.0 million for the same period a year ago. Revenue was $411.5 million, an increase of 1.0 percent or $4.0 million from $407.5 million for the same period a year ago. The cooperative posted a quarterly net margin of $23.8 million, up 7.2 percent or $1.6 million compared to $22.2 million from a year ago.
For the six-month period ending June 29, 2013, True Value reported gross billings of $987.6 million, up 0.3 percent or $3.4 million from $984.2 for the same period a year ago. True Value reported revenue of $724.3 million, an increase of 0.7 percent or $5.3 million, from $719.0 million for the same period a year ago. The 2013 year-to-date net margin was $24.2 million, down 19.6 percent or $5.9 million, from $30.1 million one year ago primarily due to a decline in the margin rate in the first quarter, which increased in the second quarter.
"Our expanded farm, ranch, automotive and pet product lines contributed to increased gross billings while the delayed spring-like temperatures and heavy rains had a positive impact on sales of lawn and garden, and plumbing and heating products in the second quarter," said President and Chief Executive Officer John Hartmann. "As anticipated, the gross margin rate improved in the second quarter as volume from regular replenishment product sales increased, and those items carry a higher margin."
Comp store revenue was up 1.1 percent in the period, which was reflected in the increase our retailers experienced with retail comp store sales in the quarter. On a year-to-date basis, comp store revenue was up 0.8 percent in the six-month period.
The net impact of revenue from new and terminated stores was minimal for the quarter. Revenue from new stores exceeded lost revenue from terminated stores as both new stores and conversions contributed to the revenue increase.
True Value Company, headquartered in Chicago, is one of the world’s largest retailer-owned wholesale hardware cooperatives with gross billings of $1.9 billion and revenue of $1.4 billion in 2012. The True Value cooperative includes approximately 4,600 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 and its retail identities is available at www.truevaluecompany.com.