True Value Announces First Quarter Results
Monday, April 30, 2012
CHICAGO, April 30, 2012 – True Value Company today reported revenue of $448.2 million for the quarter ending March 31, 2012, an increase of 0.1 percent or $0.4 million, from $447.8 million for the same period a year ago. The cooperative posted a quarterly net margin of $8.1 million, the same as the year-ago period.
Revenue was essentially flat in the first quarter as a lack of snowfall and cold weather in January and February drove down sales of ice-melt, snow throwers, shovels and portable heaters, while warmer temperatures in March drove stronger sales of paint, lawn mowers, fertilizers, herbicides, grass seed, insect control, and grills.
“Though our winter seasonal product sales were down 50 percent, our core hardware categories were up 6.4 percent,” said President and Chief Executive Officer Lyle Heidemann. “Our retailers’ sales were up 2.6 percent in the quarter, 11.3 percent in March and 6.1 percent in April.”
“We rolled out 451,000 square feet of new DTV stores or remodels in the first quarter with 30 more projects expected to launch in the second quarter,” said Heidemann, “Our retailers continue to invest in their stores and reap the benefits of this new format.”
First quarter profit was also flat as a slight increase in the gross margin rate to 11.2 percent from 11.0 percent a year ago was offset by higher employee benefit costs.
On April 13, the company amended its $250 million revolving credit facility to lower its average interest rate by 50 basis points. The amended bank agreement has a term of five years, expiring in April 2017.
True Value Company, headquartered in Chicago, is one of the world's largest retailer-owned wholesale hardware cooperatives with sales of $1.9 billion in 2011. The True Value cooperative includes approximately 4,650 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.
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