Wednesday November 13th, 2013 - 2:59PM
Ace Hardware Corporation has reported total revenues of $1 billion for the third quarter ended September 28, 2013, an increase of $84.4 million or 8.9% from 2012 (or 5.4% excluding all accounting impacts from the 2012 acquisition of Westlake Ace Hardware). Net income was $34.4 million for the third quarter of 2013, which was essentially flat from the $34.3 million earned in 2012.
“We’re pleased with the growth at both wholesale and retail in the third quarter,” said John Venhuizen, Ace president and CEO. “Retail same store sales in the U.S. were up 6.9% for the quarter and stand at 4.4% year to date. We continue to invest heavily in retail initiatives to help fuel growth for our local owners and that growth, in turn, is propelling the corporation.”
“During the third quarter we also launched our meaningful investment in the rollout of the Paint Studio Initiative which will transform the paint department in over 3,000 Ace stores in preparation for the May 2014 national launch,” Venhuizen continued. “As part of our strategic alliance with The Valspar Corporation, this investment is a significant portion of our strategy to double paint market share for our Ace retailers.”
The hardware cooperative noted that the December 2012 acquisition by Ace of WHI Holdings Corp., the indirect owner of the 86 store Westlake Ace Hardware retail chain, results in the consolidation of WHI’s financial statements into Ace’s financial statements for 2013. This affects the comparability of the 2013 and 2012 financial statements and results in a reduction of reported wholesale revenues, as wholesale revenues from Ace to WHI are now eliminated. In December 2012, the company also sold its paint manufacturing assets to The Valspar Corporation, which also affects the comparability of 2013 and 2012 as the inventory and fixed assets of this business are no longer reflected in its balance sheet.
Ace added 36 new domestic stores and cancelled 21 domestic stores in the third quarter of 2013 for a net increase in store count of 15. This brought the company’s total domestic store count to 4,136 at the end of third quarter 2013, an increase of 58 stores from the third quarter of 2012.