EXHIBIT 99.1
[TRU*SERV (TM) LOGO]
EARNINGS RELEASE
TRUSERV REPORTS NOVEMBER EARNINGS
MONTHLY EARNINGS BEAT PRIOR YEAR'S RESULTS EVEN WITH LOWER SALES
CHICAGO, DEC. 20, 2001 - TruServ Corporation reported today revenue for the
month ended Nov. 24, 2001 of $192.7 million, down 7.0 percent from $207.2
million, after excluding net sales from the lumber business, which was sold in
December of 2000. Revenue compared to the same period a year ago, which includes
the lumber business, was down 30.9 percent.
The co-op reported net income for the month of $1.2 million, versus a loss
of $0.4 million in the same period a year ago, after excluding the earnings of
the divested lumber business. When you include the $0.7 million of direct
earnings from the lumber business, last year's results for the month of November
was income of $0.3 million. This November's income included $0.9 million of
nonrecurring legal and refinancing costs.
Pamela Forbes Lieberman, TruServ's President and Chief Executive Officer,
said that cost reductions, coupled with higher concentration of purchases from
our members, are having the desired effect on operations.
"Operations in November continued to generate positive earnings for the
co-op," said Forbes Lieberman. "Our business plan to streamline operations,
reduce expenses and improve productivity is working."
Forbes Lieberman reiterated that TruServ is on track to secure a new
financing agreement in 2001 but cautioned that one-time restructuring charges in
December, principally due to the closing of the Hagerstown, Md., distribution
center, will result in a substantial loss for the year.
"Operationally, we're considerably stronger today than we were a year ago,"
she said. "The path to sustainable profitability is being paved this year as we
restructure the size of our distribution network, secure long-term financing and
rightsize our corporate staffing levels."
Forbes Lieberman also pointed to a significant reduction in TruServ's
senior note and revolver debt as a sign of forward momentum.
"At the end of November, senior note and revolver debt, net of available
cash on hand, was $357.4 million, down 26 percent compared with $483.3 million
outstanding at November month end a year ago.
November Earnings Release Page 1
MONTH OF NOVEMBER SUMMARY RESULTS
($ in millions)
$ %
2001 2000 Change Change
-------- -------- ------- -------
Comparative Revenue $ 192.7 $ 207.2 $ (14.5) -7.0%
Lumber Business Revenue $ - $ 71.8 $ (71.8)
-------- -------- -------
Reported Revenue $ 192.7 $ 279.0 $ (86.3) -30.9%
Comparative Net Income /(Loss) $ 2.1 $ (0.4) $ 2.5 nm
Direct Lumber Business Earnings $ - $ 0.7 $ (0.7)
Refinancing & Unusual Legal Fees $ (0.9) $ - $ (0.9)
-------- -------- -------
Reported Net Income $ 1.2 $ 0.3 $ 0.9 400%
This earnings release may contain forward-looking statements that involve risks
and uncertainties. The following factors could cause results to differ
materially from management expectations as projected in such forward-looking
statements: seasonal variations, competition, risks of new business areas, the
availability and cost of real estate and construction, and changes in federal or
state legislation or regulations. Members are referred to the "Cautionary Note
Regarding Forward-Looking Statements" in the Company's most recent Form 10-K
which is incorporated into this news release by reference.
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November Earnings Release Page 2