True Value Announces First Quarter Results

Monday, April 27, 2009

Co-op posts profit increase despite economic impact on revenue

First-quarter revenue of $442.9 million
Net margin of $11.2 million

CHICAGO, True Value Company today reported revenue of $442.9 million for the quarter ending April 4, 2009, a decrease of 4.7 percent or $21.8 million from $464.7 million for the same period a year ago. The cooperative posted a quarterly net margin of $11.2 million, an increase of 115 percent or $6.0 million versus $5.2 million one year ago.

The economic recession impacted the company’s first-quarter revenue. While the co-op is disappointed with the revenue results, True Value retailers are outperforming most of the home improvement industry.

Last year’s first-quarter net margin included a $2.9 million net gain from a reduction in an award against the company in a previous arbitration matter. Excluding last year’s gain, net margin for the quarter was up 387 percent or $8.9 million. This profit increase was primarily due to several factors including lower fuel costs, a favorable merchandise mix, some product inflation and constant attention to cost reduction. Total debt at the end of the quarter was $201.0 million, down 9.3 percent from 221.6 million a year ago.

“We are well positioned to capitalize on the spring selling season, generating additional sales momentum from an expanded promotional campaign,” said President and Chief Executive Officer Lyle Heidemann. “Weather has improved in many areas of the country over the last few weeks and our lawn and garden sales have responded, running well up over last year.”

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 cooperative includes approximately 5,400 independent retailer locations and businesses worldwide operating under the store identities of True Value, Grand Rental Station, Taylor Rental, Party Central, Home & Garden Showplace, Induserve Supply and Commercial Sales. Additional information on the co-op is available at www.truevaluecompany.com.

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