Ace increases revenues but plateaus on income in Q3
Ace Hardware Corp. released its third-quarter earnings report today to the generally positive results of 8.9% growth in revenues since 2012, but more of the same in terms of income.
The hardware cooperative netted $1.0 billion in revenues for the third quarter, an increase of $84.4 million over the same quarter in 2012.
Meanwhile, net income came in at $34.4 million, little changed since 2012's figure of $34.3 million.
“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.”
Venhuizen also noted the launch of the Paint Studio Initiative during the third quarter, which will revamp paint departments across 3,000 Ace stores by May 2014 as part of the company's strategic partnership with The Valspar Corp.
The company cited the December 2012 acquisition of WHI Holdings Corp., as well as the sale of its paint manufacturing assets to Valspar, as factors impacting the comparability of its 2012 versus 2013 earnings reports. As of Sept. 28, the Ace balance sheet includes $67.7 million of WHI inventory, $19.1 million of property and equipment, $23.0 million of goodwill and other intangibles, and $23.9 million of WHI acquisition debt.