True Value 2009 Annual Report Download - page 2

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True Value enters a new decade with confidence. Even when the economy was
unkind to our industry – and business in general – our commitment to profitable
growth kept us on track this past year. With a strong financial footing, we are
continuing full-speed ahead on the path of investment in our future – and the
Destination True Value (DTV) format, our recommended store layout. We’re
winning at retail by connecting with our customers more effectively than ever,
using consumer insights, retail trends and industry best practices as our compass.
Undeniably, 2009 presented many economic challenges. Unemployment hit a
devastating 10 percent and is predicted to remain high into the first half of 2010.
With less disposable income and growing concerns about their financial future,
consumers and retailers tightened their belts.
In light of the economic climate, the co-op increased its profit in 2009 and
stands financially solid entering 2010 – two accolades most retailers can’t hang
their hats on today. Thanks to your partnership and support, True Value again
outperformed the home improvement industry in both retail and wholesale.
Revenue was $1.8 billion for the full year, a decrease of 9.4 percent from 2008.
Net margin was $65.4 million, up $1.2 million and total debt declined $19.7
million. We also increased our cash balance by almost $20 million and paid
down our line of credit completely – a company milestone.
Reflecting on our 2009 financial performance, True Value retailers and associates
can be proud of our accomplishments:
• A second consecutive year of comparative store sales that outperformed
our home improvement industry peers on a wholesale and retail basis.
• Total DTV store square footage that exceeded 1.1 million, including nearly
475,000 additional square feet of selling space in DTV projects last year.
To continue this momentum, we must aggressively focus on being relevant to
existing customers – and the next generation of shoppers. Frankly, it’s table-
stakes for staying in the game and growing profitably. We’re investing across
the co-op to equip our retailers with tools to ensure that the True Value shopping
experience meets consumers’ changing needs and expectations. After all, what’s
good for the customer is good for True Value.
TO OUR RETAILERS:
MORE THAN A
DIVIDEND CHECK
Providing value is a commitment
your co-op takes very seriously.
Value transcends well beyond
an annual dividend check.
Listed are some of the nancial
benets you enjoyed as a co-op
member throughout 2009.
2009 Total Member Benefits
Patronage Dividend/
Cash $23,519,971
Patronage Dividend/
Notes, Stock $33,743,548
Promotional Discounts $23,820,516
Dating & Anticipation $12,889,869
Market Spiffs/Racking $10,398,614
Marketing/
Promotional Credits $8,509,675
DTV Credits & Loans $5,214,041
Free Freight $3,937,662
Interest on Notes $4,495,055
TOTAL CREDITS
& DISCOUNTS $126,528,951
% of Purchases 7.4%