True Value reports strong revenue and earnings growth.
True Value Co. reported revenue of $597.0 million for the quarter ending July 1, 2006, an increase of 8.2 percent or $45.6 million from $551.6 million for the same period a year ago. The co-op posted net margin for the quarter of $24.0 million, an increase of 23.7 percent or $4.6 million versus $19.4 million one year ago.
True Value also reported revenue of $1.09 billion for the six months ending July 1, 2006, an increase of 3.6 percent or $38.4 million from the same period a year ago. Net margin for the six-month period was $36.8 million, up 66.5 percent or $14.7 million from $22.1 million last year. The 2006 year-to-date net margin includes a $6.2 million benefit from reversals of previously established reserves for the Ernst and Young litigation. Excluding that one-time benefit, net margin was still up 38.5 percent.
"I am very pleased with the performance of our spring season, in particular the second quarter comp-store sales increase of 6.4 percent," said President and CEO Lyle Heidemann. "Our sharpened focus on small projects competitively positions True Value in the marketplace and I believe is contributing to our improved performance.
The co-op also reported that its improved performance enabled it to reduce total debt to $182.6 million, a 20 percent reduction from a year ago.
"Consumers today are more apt to focus on projects they can execute simply and affordably, putting True Value stores in a great position to help them achieve their goals with the right products, service and advice," Heidemann said.
In other news, True Value has appointed Cheryl Bachelder to its board as an independent director. Bachelder began her marketing career in 1978 with Proctor & Gamble and then went to work for Gillette Co., managing new product development within its PaperMate division. She joined RJR Nabisco in 1984 as group brand manager. Later on, she was named vice president of marketing and product development for Domino's Pizza and served as president and chief concept officer for the KFC division of Yum! Brands. She has an MBA degree from Indiana University.
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|Title Annotation:||NewsMakers: Reporting on the Industry|
|Article Type:||Financial report|
|Date:||Sep 1, 2006|
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