PaintSquare.com
      | Connect Follow us on Twitter Like us on Facebook
About | Subscribe | Advertise
  

 

Paint and Coatings Industry News

Main News Page


Ace Reports Q2 Financials

Wednesday, August 19, 2009

Comment | More

Ace Hardware Corporation, the largest retailer-owned hardware cooperative in the industry, has reported net income of $42.2 million for the second quarter of 2009—an increase of $8.7 million or 26.2 percent, compared to $33.4 million in the second quarter of 2008.

For the six-month period ended July 4, 2009, net income was $56.6 million, an increase of $12.4 million or 28.1 percent over 2008, reported the company, based in Oak Brook, Ill.

After excluding certain non-comparable items, Ace reported adjusted EBITDA of $60.2 million for the second quarter of 2009 as compared to $63.5 million in 2008. For the six- month period ended July 4, 2009, adjusted EBITDA was $91.1 million as compared to $94.7 million in 2008.

“Our overall performance in the second quarter of 2009 is solid relative to the economic environment, the unusually cool weather, and the current state of consumer spending in general at retail,” said Ray Griffith, Ace president and chief executive officer. “Consumers are taking on more home maintenance projects themselves, they need advice, and we have an undisputed position in the market as the helpful hardware professionals which has and will continue to serve us well.”

Earnings for Ace Paint, a division of Ace Hardware, were included in the earnings report but not detailed.

Revenues

Total revenues for the second quarter of 2009 were $973.1 million, a decrease of $91.8 million or 8.6 percent from $1.065 billion in 2008. For the six-month period ended July 4, 2009, total revenues were $1.824 billion, a decrease of $111.1 million or 5.7 percent from 2008.

Ace added 25 new stores and cancelled 53 stores in the second quarter, bringing its total store count to 4,530 at the end of the second quarter.

Gross profit

Gross profit in the second quarter of 2009 was $132.5 million, a decrease of $3.5 million from 2008, and the gross profit percentage was 13.61 percent as compared to 12.77 percent in 2008. The increase in gross profit percentage in 2009 was attributable to a shift from direct ship sales toward a higher percentage of warehouse sales that carry higher handling charges and a benefit related to certain costs capitalized into inventory as compared to the prior year.

Expenses

Operating expenses decreased $1.5 million, or 1.7 percent, to $82.6 million in the second quarter of 2009 and increased to 8.49 percent as a percentage of revenues as compared to 7.90 percent in 2008.

Balance sheet

Inventories decreased $20.9 million to $446.9 million at the end of the second quarter of 2009 as compared to the second quarter of 2008. However, service levels (fill rates) to Ace retailers improved to 96.8 percent for the second quarter compared to 96.6 percent for the prior year reflecting Ace’s ongoing commitment to support its retailers’ needs.

Total debt including patronage refund certificates, net of cash, decreased $66.4 million to $169.7 million at the end of the second quarter of 2009 as compared to the second quarter of 2008.

   

Tagged categories: Ace Hardware; Ace Paint; Earnings reports

Comment Join the Conversation:

Sign in to our community to add your comments.

Bullard

The Next Generation
of Blasting

• Lightest
• Coolest
• Most Comfortable
• Most Dependable


Mitsubishi Gas Chemical America
Performance Amine 1,3-BAC

A highly reactive cycloaliphatic diamine offering superior performance. Reasonable cost and curing efficacy makes it suitable for all types of epoxy resin applications.


Dampney Co., Inc.
Solar Coating

High Temperature Resistant for Solar Panels/Collectors/Tubes. Achieve selectivity with the economy and ease
of application of a paint.


DeHumidification Technologies
HUMIDITY PROBLEMS?

DH Tech has the most innovative and reliable equipment available to
control humidity efficiently
and effectively.
IT'S UNDER CONTROL!


International Paint LLC

International Paint Engineered Coatings

Learn about our solutions for:
  • Structural Steel
  • Piping & Equipment
  • Storage Tanks
  • Pressure Vessels
  • Secondary Containment


    Modern Safety Techniques
    Modern Safety Techniques

    With our unique LTCat, we can help to provide clean, safe breathing air to your workers. Take a look at our Breathing Air Systems, we supply at least twice as much charcoal as our competitors! Modern


    Minerals Research & Recovery

    HIGH PERFORMANCE ABRASIVES


    “Made in the USA!”

    Why recycle waste from other countries? Go FASTER, CLEANER, at 1/3 THE COST with MR&R “All-American” Sharpshot®HP!!

    WATCH THE VIDEO


    KTA-Tator, Inc. - Corporate Office
    KTA-Tator
    Coatings Inspection

    Any structure, any height, any place - A qualified coatings inspector is always available. Call 800-245-6379.


    Atlantic Design, Inc.
    OUR QUALITY & YOUR TIME.

    Many service issues can be easily solved over the phone. When you do need parts, ADI has most in stock for all your blasting needs. 866.Call.ADI

  •  
     
     
    Technology Publishing

    The Technology Publishing Network

    The Journal of Protective Coatings & Linings (JPCL) PaintSquare
    Durability + Design Paint BidTracker

     
    EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
    REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
    MORE:      About PaintSquare.com   |   Privacy policy   |   Terms & conditions   |   Site Map   |   Search   |   Contact Us
     

    © Copyright 2000-2015, Technology Publishing / PaintSquare, All rights reserved
    2100 Wharton Street, Suite 310, Pittsburgh PA 15203-1951; Tel 1-412-431-8300; Fax 1-412-431-5428; E-mail webmaster@paintsquare.com