True Value 2011 Annual Report Download - page 2

ANNUAL REPORT 2011 01
TO OUR RETAILERS:
A company with a bold vision, seasoned leadership, proven track record,
financial stability and solid growth potential to deliver a consistent return
on our shareholders’ investment. That’s how we describe True Value from
a financial valuation perspective. But the heart of what we do centers
around delivering expertise — specifically, building strong connections
with the people we serve. Whether the small-project advice given by an
in-store associate to a customer or a conversation between a product
merchant and a retailer, True Value’s success hinges upon knowledge,
relationships and trust.
As trusted advisors, we strive to make our retailers more competitive, relevant and
profitable — and we hold ourselves accountable for their success. True Value begins 2012
with undisputed financial stability, an expanded retail footprint and a profitability record
unrivaled by our industry peers. With our eye consistently on the future and meeting
customers’ expectations, our retailers embark on 2012 with access to an improved suite
of aggressively tested tools and programs designed to help them invest in and run
successful businesses.
As the economy grows stronger, True Value’s sales momentum is increasing as well. For
the full year 2011, True Value’s revenue was $1.9 billion, an increase of 3.4 percent from
2010. Net margin was $60.3 million, down $0.4 million and total debt increased $5.8 million.
Total comparative store sales were up 4.7 percent, and our international business achieved
double-digit growth. What’s more, for the fifth consecutive year we’ve delivered a patronage
dividend exceeding $56 million.
Reflecting on our 2011 financial performance, True Value retailers and associates can take
pride in our collective accomplishments.
CO-OP OF CHOICE
We know our retailers have a choice when it comes to selecting a business partner. As with
any relationship, there is an expectation of compromise, understanding that decisions are
made to enhance and grow the partnership. That’s precisely how we approach and deliver
on our promise to our retailers, who trust in True Value. And that’s why we’re focused on
making our brand more contemporary across True Value touch points — whether in our
Destination True Value (DTV) female-friendly stores, our newly remodeled retail head-
quarters or at our corporate store. We’re forward-focused, because we at True Value
pride ourselves on ensuring we’re No. 1 in the eyes of the people we serve.
FINANCIAL HIGHLIGHTS
›
NET MARGIN ($ in millions)
$64.2
2008 2009 2010 2011
$66
$44
$22
$0
$65.4 $60.7 $60.3
MEMBERS’ EQUITY ($ in millions)
$141.2
2008 2009 2010 2011
$165
$110
$55
$0
$157.3 $164.6 $159.7
NET REVENUE ($ in millions)
$2,013
2008 2009 2010 2011
$2,100
$1,400
$700
$0
$1,823 $1,804 $1,865
TOTAL DEBT ($ in millions)
$141.2
2008 2009 2010 2011
$145
$125
$115
$105
$121.5
$137.4
$143.2
$135
MORE THAN A DIVIDEND CHECK
›
True Value is committed to your growth and retail success.
Delivering on these key business metrics extends beyond
an annual dividend check. It’s also reflected in the financial
benefits you enjoyed as a co-op member throughout 2011.
Patronage Dividend/Cash $ 23,299,115
Patronage Dividend/Notes, Stock $ 33,701,812
Promotional Discounts $ 27,457,369
Dating & Anticipation $ 15,460,606
Market Spiffs/Racking $ 10,456,841
Marketing/Promotional Credits $ 8,901,119
DTV Credits & Loans $ 17,149,973
Free Freight $ 5,979,929
Credit Card Fee Reduction $ 1,945,445
Interest on Notes $ 4,839,131
TOTAL CREDITS & DISCOUNTS $149,191,341
% of Purchases 8.6%
»
BRIAN A. WEBB, CHAIRMAN
LYLE G. HEIDEMANN, PRESIDENT AND CEO
FOR FIVE CONSECUTIVE YEARS, TRUE VALUE
DELIVERED A PATRONAGE DIVIDEND EXCEEDING $56M
2011 TOTAL MEMBER BENEFITS