True Value Announces Third Quarter Results

Monday, November 02, 2009

• Third-quarter revenue of $432.0 million, down 12.4 percent
• Net margin down 3.9 percent

"We experienced increased softness in our retail segment in the third quarter," said President and Chief Executive Officer Lyle Heidemann. "The continued impact of the recession, our retailers managing their cash flow very closely and unfavorable seasonal weather compared to the third quarter last year all contributed to our revenue decline."

For the nine months ending October 3, 2009, True Value also reported revenue of $1,415.7 million, a decrease of 7.4 percent or $113.5 million from $1,529.2 million for the same period a year ago. The 2009 year-to-date net margin was $58.7 million, up 32.8 percent or $14.5 million from $44.2 million one year ago. Total debt declined 17.5 percent or $24.9 million to $117.5 million from $142.4 million a year ago.

"The company has maintained its profitability and lowered debt levels through extremely proactive expense and cash management," explained Heidemann. "This allows us to continue providing financial support to retailers adopting our Destination True Value format, either through remodeling or relocating their stores, or opening new stores."

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 True Value cooperative includes approximately 5,000 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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