TRUE VALUE COMPANY ANNOUNCES FOURTH QUARTER RESULTS
April 04, 2013
- Fourth-quarter gross billings up 2.3 percent
- Fourth-quarter revenue up 3.3 percent
- Fourth-quarter profit up 134.7 percent
CHICAGO, April 4, 2013 – True Value Company today reported gross billings of $451.9 million for the quarter ending Dec. 29, 2012, an increase of 2.3 percent or $10.0 million from $441.9 million for the prior year ended Dec. 31, 2011. Revenue was $340.4 million, an increase of 3.3 percent, or $10.9 million. The co-op posted quarterly earnings of $29.1 million, an increase of 134.7 percent or $16.7 million, from $12.4 million for the same period a year ago. The profit increase was primarily driven by a fourth-quarter litigation settlement gain of an ongoing matter.
For the year ending Dec. 29, 2012, True Value also reported gross billings of $1,884.9 million, an increase of 1.1 percent or $20.1 million for the same period a year ago. Revenue was $1,399.1 million, an increase of 0.4 percent, or $5.0 million. Comp store sales to retailers were up 2.0 percent on a gross billings basis and up 1.4 percent on a revenue basis. Retailer comp store sales were up 1.5 percent, based on more than 1,600 reporting retailers. The co-op posted earnings of $74.9 million, an increase of 24.2 percent or $14.6 million, from $60.3 million for the same period a year ago. The profit increase was primarily due to the litigation settlement gain.
“This was one of the most profitable years in the company’s history,” said President and Chief Executive Officer, Lyle Heidemann. “Our largest increase in both retail and wholesale comp store sales were in the paint, seasonal, and farm, ranch, auto and pet product categories.”
“We added 44 new core stores in 2012, a combination of new ground up stores and conversions from other distributors. We continued to support our retailers’ investment in their stores. In 2012, we provided more than $25 million in loans, free inventory and other financial incentives to retailers who implemented the Destination True Value retail format,” Heidemann added. “Our retailers remodeled, expanded, or opened 941,000 square feet of the Destination True Value (DTV) format in 2012, bringing the total to approximately 4 million square feet since inception of the format in 2008. Stores that have implemented the DTV format continue to outperform those stores that have not.”
Total year-end debt was $185.1 million, up 29.3 percent or $41.9 million, from $143.2 million a year ago. The company issued $28.1 million of new notes to its retailers as part of the year-end patronage dividend distribution and invested an incremental $11.5 million of inventory in new and expanded assortments in its farm, ranch, auto and pet business. The company ended the year with $28.6 million of borrowings outstanding on its revolving credit facility, representing about 11.4 percent of its $250 million credit facility.
About True Value Company
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.