January 24, 2000 - Volume vi, #3
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154 JOIN US FOR OUR BIRTHDAY AT THE HARDWARE SHOW: If you still haven't reserved your spot for our Fifth Annual Show Breakfast to kick off the Canadian Hardware & Building Materials Show, I urge you to call Bev right away at extension 2. Space is almost filled up!ALSO PRESENTING THE 1999 HARDLINES NEWSMAKER OF THE YEAR AWARD!Sunday, February 6, 2000, 7:30 a.m. to 9:00 a.m. in Room 103 at the National Trade Centre, CNE grounds. Featuring R&B Legend Bobby Dean Blackburn and his Trio.With huge thanks to this year's sponsors:
CANADIAN HARDWARE & HOUSEWARES MANUFACTURERS ASSOCIATION
* * * * * * *HARDLINES WHO'S WHO DIRECTORY
Make sure you know who the key buyers are at the Hardware Show! The Hardlines Who's Who is a comprehensive guide to Canada's leading hardware and home improvement retailers, wholesalers, buying groups, mass merchants and co-ops. More than 100 listings include sales, product mix, SKUs, store types, executives and key buyers and their responsibilities. Subscriber cost is only $105. * * * * * * *WHO ARE THE TOP PLAYERS IN THE U.S.?
I get asked this question a lot, so now there's a handy directory with the answers you need. Our TOP 50 Directory of leading home improvement retailers in the U.S. is a handy, affordable way to check out the action south of the border. It's not as comprehensive as our blockbuster Who's Who Directory of Canadian Retailers, so we've priced it accordingly &endash; just $45 for subscribers. Call or e-mail us for more information. * * * * * * *HARDLINES IN COLOGNE:Thinking of going to the world's largest hardware show this spring? You should be &endash; the Cologne International Hardware Fair/DIY'Tec, March 12-15, 2000, is the largest of its kind in the world and this is the year all the biggies will be there. That's why we've put together an incredible travel package to Cologne, Germany, with the support of External Affairs Canada. Call or email us for info! But act quickly on this because all the good hotel rooms are booking up fast! -- Michael Enough blatant self-promotion already &endash; This week in Hardlines:NEW FACILITIES STRENGTHEN CANWEL'S ROLE IN PTWHot on the heels of its takeover by The Futura Corp. in Vancouver, CanWel Distribution Ltd. has announced it will open two new facilities. The first is a distribution centre on Vancouver Island, which will open effective February 28th. A new customer service centre in the Saskatoon area will open by this summer. With sales of $450 million, CanWel already operates 12 distribution centres and one reload centre. The two new centres reflect CanWel's commitment to pressure-treated wood sales. Its parent, The Futura Corp., manufactures PTW from facilities in B.C., Alberta and Ontario. "CanWel hasn't been a major player in central and western Canada in pressure-treated wood," says Dennis Nykoliation, president and CEO, "but we sure as heck are now. Our synergy with Futura gives us the growth opportunity we've been looking for."The 3.5-acre Vancouver Island distribution centre is in Chemainus, between Victoria and Nanaimo, on property owned by Futura. It will service the market of about 75 building supply dealers on the Island, providing commodity lumber, plywood and PTW. The Saskatoon customer service centre will stock commodity products, PTW and allied building materials. "For the past several years, CanWel has serviced the market from outside the province," says Nykoliation. "Now Saskatchewan will have a full service distribution centre that will be second to none."* * * * * * *HOME DEPOT'S CONTRACTOR CATALOGUE EXPECTED TO ROLL OUT THIS SPRINGHome Depot Canada has named its catalogue division - and put someone in place to run it. It will be called Home Depot Commercial Direct, an extension of the Maintenance Warehouse catalogue business established last year in the U.S. Leo Hawkes has come over from Acklands to head up the division as vice-president and general manager. The catalogue business was bought by Home Depot in the U.S. to help it grow its contractor business. The Canadian division is expected to roll out with its own catalogue sometime this spring.COMPANIES IN THE NEWSCameron Ashley Building Products has been the subject of a senior management buyout. The move is being spearheaded by chairman and CEO Ron Ross and includes all the company's vps. It is backed financially by CGW Southeast Partners, the company that has helped with at least one of CA's previous acquisitions. CGW currently owns about 11% of the company's outstanding shares, which are being bought for US$15.10 each, a 35% premium over its recent share prices. The transaction is expected to close in the second quarter of 2000 and be worth around US$320 million, including the assumption of US$182 million in debt. Cameron Ashley had sales of US$1.14 billion in its fiscal year ended October 31, 1999.For the year ended January 1, 2000, Sears Canada Inc. had its third consecutive year of record earnings, which rose to $199.6 million, up 36% over $146.4 million a year earlier. Total revenue increased to $6.131 billion, compared with $5.481 billion in 1998. Unaudited net earnings for the fourth quarter were $107.1 million, an increase of $22.1 million or 26% over 1998's record fourth quarter earnings of $85.0 million. Total revenue for the quarter increased 13.3%, reaching $2.012 billion versus $1.775 billion last year.Castle Building Centres Group has added the following new members: ARCO Lumber Ltd., Eel River Crossing, N.B.; Ron Savoie, Daniel Berube; Breault's Building & Masonry Supplies, Kirkland Lake, Ont., Albert and Kevin Breault; Button's Marine Inc., Old Perlican, Nfld., Aaron Button; Harron Hardware & Building Supplies, Moorefield, Ont., Jeff Harron; Herner Wood Products Limited, Baden, Ont., David Herner; R.W. & Sons Builders Inc., Balcarres, Sask., Greg Warnez.Slocan Forest Products Ltd. achieved record net earnings in 1999 of $110.3 million, more than doubling shareholders' equity from 1998 levels. Sales reached $1.1 billion, up from $936.2 million in 1998. The company also manage to reduce debt by over $250 million in 1999, resulting in a major improvement in Slocan's financial position. It also accumulated cash of over $100 million. Fourth quarter net earnings were $20.1 million, compared with a net loss of $136.2 million for the fourth quarter of 1998. The 1998 net loss included after tax write-downs of assets (primarily pulp) of $125.1 million. Sales in the fourth quarter of 1999 were $242.0 million, compared with sales of $223.2 million a year earlier. Sears Canada will open a Sears Furniture and Appliance store at Orchard Park Shopping Centre in Kelowna early this summer. Approximately 49,000 sq.ft. of the existing 80,000 square foot former Eaton's location will be converted to accommodate the new outlet, which will sell furniture, rugs, accent-decor items and major home appliances.Richelieu Hardware Ltd. has acquired Saskatchewan-based European Hardware, which operates two distribution and warehousing centres in Regina and Saskatoon. The deal will add about $3 million annually to Richelieu's sales and bring Richelieu's total number of distribution centres to 17, including its first in the U.S., in Detroit. CANADIAN STOCK WATCH
CANADIAN HARDWARE & HOUSEWARES MANUFACTURERS ASSOCIATION
* * * * * * *HARDLINES WHO'S WHO DIRECTORY
Make sure you know who the key buyers are at the Hardware Show! The Hardlines Who's Who is a comprehensive guide to Canada's leading hardware and home improvement retailers, wholesalers, buying groups, mass merchants and co-ops. More than 100 listings include sales, product mix, SKUs, store types, executives and key buyers and their responsibilities. Subscriber cost is only $105. * * * * * * *WHO ARE THE TOP PLAYERS IN THE U.S.?
I get asked this question a lot, so now there's a handy directory with the answers you need. Our TOP 50 Directory of leading home improvement retailers in the U.S. is a handy, affordable way to check out the action south of the border. It's not as comprehensive as our blockbuster Who's Who Directory of Canadian Retailers, so we've priced it accordingly &endash; just $45 for subscribers. Call or e-mail us for more information. * * * * * * *HARDLINES IN COLOGNE:Thinking of going to the world's largest hardware show this spring? You should be &endash; the Cologne International Hardware Fair/DIY'Tec, March 12-15, 2000, is the largest of its kind in the world and this is the year all the biggies will be there. That's why we've put together an incredible travel package to Cologne, Germany, with the support of External Affairs Canada. Call or email us for info! But act quickly on this because all the good hotel rooms are booking up fast! -- Michael Enough blatant self-promotion already &endash; This week in Hardlines:NEW FACILITIES STRENGTHEN CANWEL'S ROLE IN PTWHot on the heels of its takeover by The Futura Corp. in Vancouver, CanWel Distribution Ltd. has announced it will open two new facilities. The first is a distribution centre on Vancouver Island, which will open effective February 28th. A new customer service centre in the Saskatoon area will open by this summer. With sales of $450 million, CanWel already operates 12 distribution centres and one reload centre. The two new centres reflect CanWel's commitment to pressure-treated wood sales. Its parent, The Futura Corp., manufactures PTW from facilities in B.C., Alberta and Ontario. "CanWel hasn't been a major player in central and western Canada in pressure-treated wood," says Dennis Nykoliation, president and CEO, "but we sure as heck are now. Our synergy with Futura gives us the growth opportunity we've been looking for."The 3.5-acre Vancouver Island distribution centre is in Chemainus, between Victoria and Nanaimo, on property owned by Futura. It will service the market of about 75 building supply dealers on the Island, providing commodity lumber, plywood and PTW. The Saskatoon customer service centre will stock commodity products, PTW and allied building materials. "For the past several years, CanWel has serviced the market from outside the province," says Nykoliation. "Now Saskatchewan will have a full service distribution centre that will be second to none."* * * * * * *HOME DEPOT'S CONTRACTOR CATALOGUE EXPECTED TO ROLL OUT THIS SPRINGHome Depot Canada has named its catalogue division - and put someone in place to run it. It will be called Home Depot Commercial Direct, an extension of the Maintenance Warehouse catalogue business established last year in the U.S. Leo Hawkes has come over from Acklands to head up the division as vice-president and general manager. The catalogue business was bought by Home Depot in the U.S. to help it grow its contractor business. The Canadian division is expected to roll out with its own catalogue sometime this spring.COMPANIES IN THE NEWSCameron Ashley Building Products has been the subject of a senior management buyout. The move is being spearheaded by chairman and CEO Ron Ross and includes all the company's vps. It is backed financially by CGW Southeast Partners, the company that has helped with at least one of CA's previous acquisitions. CGW currently owns about 11% of the company's outstanding shares, which are being bought for US$15.10 each, a 35% premium over its recent share prices. The transaction is expected to close in the second quarter of 2000 and be worth around US$320 million, including the assumption of US$182 million in debt. Cameron Ashley had sales of US$1.14 billion in its fiscal year ended October 31, 1999.For the year ended January 1, 2000, Sears Canada Inc. had its third consecutive year of record earnings, which rose to $199.6 million, up 36% over $146.4 million a year earlier. Total revenue increased to $6.131 billion, compared with $5.481 billion in 1998. Unaudited net earnings for the fourth quarter were $107.1 million, an increase of $22.1 million or 26% over 1998's record fourth quarter earnings of $85.0 million. Total revenue for the quarter increased 13.3%, reaching $2.012 billion versus $1.775 billion last year.Castle Building Centres Group has added the following new members: ARCO Lumber Ltd., Eel River Crossing, N.B.; Ron Savoie, Daniel Berube; Breault's Building & Masonry Supplies, Kirkland Lake, Ont., Albert and Kevin Breault; Button's Marine Inc., Old Perlican, Nfld., Aaron Button; Harron Hardware & Building Supplies, Moorefield, Ont., Jeff Harron; Herner Wood Products Limited, Baden, Ont., David Herner; R.W. & Sons Builders Inc., Balcarres, Sask., Greg Warnez.Slocan Forest Products Ltd. achieved record net earnings in 1999 of $110.3 million, more than doubling shareholders' equity from 1998 levels. Sales reached $1.1 billion, up from $936.2 million in 1998. The company also manage to reduce debt by over $250 million in 1999, resulting in a major improvement in Slocan's financial position. It also accumulated cash of over $100 million. Fourth quarter net earnings were $20.1 million, compared with a net loss of $136.2 million for the fourth quarter of 1998. The 1998 net loss included after tax write-downs of assets (primarily pulp) of $125.1 million. Sales in the fourth quarter of 1999 were $242.0 million, compared with sales of $223.2 million a year earlier. Sears Canada will open a Sears Furniture and Appliance store at Orchard Park Shopping Centre in Kelowna early this summer. Approximately 49,000 sq.ft. of the existing 80,000 square foot former Eaton's location will be converted to accommodate the new outlet, which will sell furniture, rugs, accent-decor items and major home appliances.Richelieu Hardware Ltd. has acquired Saskatchewan-based European Hardware, which operates two distribution and warehousing centres in Regina and Saskatoon. The deal will add about $3 million annually to Richelieu's sales and bring Richelieu's total number of distribution centres to 17, including its first in the U.S., in Detroit. CANADIAN STOCK WATCH