PaintSquare.com


The First Word in Protective & Marine Coatings

A Product of Technology Publishing / PaintSquare
JPCL | PaintSquare News | Durability + Design | Paint BidTracker

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.

NLB Corporation
VacLance cleans up as you work

Add vacuum recovery to any NLB rotating water jet lance with a VacLance attachment and vacuum source. Model DM32283 works vertically, horizontally and in corners.


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


BASF
New resins from BASF will have metals loving water:

Excellent corrosion resistance, low VOC, high gloss, thin films basf.us/industrialcoatings
polyorders@basf.com
800-231-7868


Sherwin-Williams
Heat-FLex® Hi-Temp 1200

Improved Corrosion
Resistance
Enhanced Durability
Faster Shop Throughput


SSPC: The Society for Protective Coatings
http://www.sspc.org/

Join SSPC and Enhance
Your Career !


Fischer Technology Inc.
MP0R with rotating display screen

View your coating thickness readings from any angle with rotating display screen. New graphic display with easy menu navigation. Click for Video
Call 800-243-8417


Montipower, Inc.
The MBX Bristle Blaster

Get a 2.7 to 3.3 mil profile and a Near White Metal Clean. For info visit www.mbxit.com or call 877 629-8777

 
 
 
Technology Publishing

The Technology Publishing Network

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

 
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 2000-2014, 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