Ace points to strong sales and earnings
Oak Brook, Ill.-based Ace Hardware Corp. reported total fiscal 2013 revenues of $4.2 billion, an increase of 8.2% over the previous year.
“2013 was a record year for the company," said John Venhuizen, Ace president and CEO. “We outperformed our operating plan, exceeding $4 billion in consolidated revenues and $100 million in net income for the first time in our history.”
Net income was $104.5 million for fiscal 2013, an increase of $22.7 million, or 27.8%, compared with $81.8 million in fiscal 2012.
The results for fiscal 2013 included a charge of $6.2 million related to the estimated costs to close the Toledo, Ohio, Retail Support Center (RSC), while fiscal 2012 included a charge for the loss on the early extinguishment of debt of $19.9 million.
The results for fiscal 2012 also included a $7.0 million gain on the sale of paint assets, net of acquisition and disposition costs.
Total revenues for the fourth quarter of 2013 were $1.0 billion, an increase of 12.1%. Net income was $23.4 million for the fourth quarter of 2013, an increase of 4.5% from the $22.4 million earned in 2012.
“Ace retailers also had a very good year,” continued Venhuizen. “Comparable-store retail sales were up 3.5% in the fourth quarter and up 4.3% for the year, with 75% of retailers surveyed reporting record net profits.”
The December 2012 acquisition by Ace of WHI Holdings Corp., the indirect owner of the 85 store Westlake Ace Hardware retail chain, resulted 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. This elimination totaled $83.7 million in wholesale revenues for all of 2013 and $21.6 million for the fourth quarter of 2013.
Ace added 152 new domestic stores and canceled 85 domestic stores in fiscal 2013 for a net increase in store count of 67. This brought the company’s total domestic store count to 4,171 at the end of 2013.
Parker Do it Best Lumber takes award
Parker Do it Best Lumber, based in Beaumont, Texas, was chosen as a 2014 pro dealer Entrepreneur of the Year in the category of sales of over $50 million.
Parker Lumber has been serving builders, remodelers and homeowners for more than 80 years in Texas and now southern California. Scott Parker runs the family-owned company that employs 350 people throughout 22 locations.
Parker’s continued growth into new markets is cited as a key factor for its success.
Scott Parker accepted the award, which was presented at the recent LBM Distribution conference.
Do it Best promotes Bob Gumash
Do it Best Corp. has promoted Bob Gumash to regional sales and business development manager for the northeastern United States, effective immediately. He replaces Rob Schmiedel, who was recently promoted to national sales manager.
“I’m honored to lead this outstanding regional team as we work to achieve our No. 1 goal: helping our members grow,” Gumash said. “I’m excited to combine my previous experiences as a territory manager and retail performance manager to bring an unparalleled level of service and support to our members.”
Gumash, who has been with Do it Best for 13 years, will lead a team of territory managers in the region, which includes New York, Pennsylvania, New Jersey, Connecticut, Massachusetts, Vermont, New Hampshire, Maine, Rhode Island, Virginia, Delaware and Maryland. He will also work on strengthening relationships with member-owners (new and old), as well as helping them improve retail performance.
“Bob brings the perfect mix of knowledge and enthusiasm to this role,” added Jay Brown, VP sales and business development for Do it Best Corp. “He’s proven himself in his work with both our members and our field sales staff, and we are eager to see the positive impact he’ll make in his region and throughout the co-op.”
In his most recent role, Gumash served as retail performance manager. He also worked as a territory manager for western Pennsylvania and western New York. He has more than 25 years of experience in hardware retailing, especially in store development and expansion.