Revenues, income rise at Ace

Ace Hardware reported revenues of $949.9 million for its third fiscal quarter of 2012, a 4.2% increase over revenues of $912.0 million in the same quarter of 2011. Net income for the third fiscal quarter was $34.3 million, compared with $17.0 million in the corresponding quarter a year ago. 

For the nine-month period ended Sept. 29, Ace Hardware posted revenues of $2.92 billion, versus $2.78 billion in the same period a year ago. Net income for the nine-month period was $59.4 million, compared with $58.5 million in the nine-month period of 2011.

The results for the first nine months of 2012 included a charge for the loss on the early extinguishment of debt of $19.9 million during refinancing of a credit facility and early redemption of senior secured notes.

Revenues got a $7.6 million boost from the Oak Brook, Ill., co-op’s decision to hold its fall convention in the third quarter of 2012, compared with the fourth quarter of 2011. The change in timing will have a negative impact on fourth-quarter 2012 revenues, Ace warned.

Comp-store sales increased 3% in the United States compared with the previous year. Ace added 32 new domestic stores and canceled 32 domestic stores in the third quarter, ended with a total U.S. store count of 4,078 as of Sept. 29, 2012. Accrued patronage distributions by the end of the third quarter were $33.3 million, according to Ace’s financial statement. 

“We are pleased with our third-quarter results, as revenues and net income were both higher than last year and our plan,” said Ray Griffith, Ace’s CEO. “Our results reflect continuous improvement from our strategic initiatives, specifically in our supply chain systems. We continue to invest in our business to provide a firm foundation for future growth.”