Midas Reports 2000 Earnings in Line With Previous Guidance
ITASCA, Ill.--Feb. 15, 2001--Midas, Inc. today announced its results for the fourth quarter and fiscal year ended Dec. 30, 2000.Fiscal 2000 full-year earnings were $30.5 million--or $1.96 per diluted share--including unusual items. Full-year earnings include the previously announced fourth quarter charge of $4.8 million--or $0.32 per share--to increase the allowance for bad debts and to implement a program to reduce on-going employee-related operating costs. Full-year earnings were also affected by non-operating gains on the sale of assets of $7.4 million--or $0.47 per share--in the first three quarters.
Excluding the unusual items and non-operating gains, Midas earned $27.9 million--or $1.80 per diluted share. For the fourth quarter of 2000, the company reported a net loss of $1.4 million--or $0.10 per share, including unusual items. Excluding the $4.8 million unusual charges announced in December, Midas earned $3.4 million--or $0.22 per diluted share.
Full-year 1999 earnings were $38.4 million--or $2.28 per diluted share. Fourth quarter 1999 earnings were $7.4 million--or $0.46 per share.
"Despite the challenging automotive aftermarket in 2000, Midas made progress in implementing strategic initiatives designed to improve Midas' long-term retail and wholesale sales and profitability," said Wendel H. Province, Midas' chairman and chief executive officer.
"We have expanded our service offering to include climate control and maintenance services, upgraded the appearance of shops in North America, launched the Parts Warehouse, Inc. (PWI) network of quick delivery wholesale parts distribution sites and improved our corporate and franchisee information systems," Province said. "Midas will continue to expand these initiatives in 2001 to support the long-term growth and success of the company and of the Midas system."
Midas' sales and revenues for 2000 were $346.2 million (52 weeks), down from $355.5 million (53 weeks) in 1999. Fourth quarter sales and revenues in 2000 were $74.9 million (13 weeks), compared to $79.9 million (14 weeks) in 1999.
In 2000, wholesale sales of replacement parts were $234.4 million--or 67.7 percent of overall sales and revenues. Royalties and license fees were $65.5 million--or 18.9 percent of revenues. Real estate rental revenues were $39.2 million in 2000--or 11.3 percent of sales and company-operated shop sales were $5.8 million--or 1.7 percent of sales.
"Although we continue to be concerned about the softness in the overall automotive service aftermarket, we re-affirm our estimate of $1.45 per diluted share for 2001 as announced in December," Province said. "We are estimating earnings of $0.21 in the first quarter."
Diluted earnings per share in 2000 are based on 15.5 million weighted average shares outstanding, compared to 16.8 million in 1999. Midas has repurchased 3.3 million shares under a board-authorized repurchase program of 5.0 million shares.
Midas is one of the world's largest providers of automotive service, offering exhaust, brake, steering and suspension services, as well as batteries, climate control and maintenance services at 2,700 franchised and licensed Midas shops in 19 countries, including more than 2,000 in the United States and Canada.
NOTE: This news release contains certain forward-looking statements that are based on management's beliefs as well as assumptions made by and information currently available to management. Such statements are subject to risks and uncertainties, both known and unknown, that could cause actual results, performance or achievement to vary materially from those expressed or implied in the forward-looking statements. The company may experience significant fluctuations in future results, performance or achievements due to a number of economic, competitive, governmental, technological or other factors. Additional information with respect to these and other factors, which could materially affect the company and its operations, is included in the company's filings with the Securities and Exchange Commission, including the company's 1999 annual report on Form 10-K.
MIDAS, INC.
CONDENSED STATEMENTS OF OPERATIONS
(In millions, except for earnings and dividends per share)
(Unaudited)
For the quarter For the year
ended fiscal December ended fiscal December
--------------------- ---------------------
2000 1999 2000 1999
---------- ---------- ---------- ----------
(13 Weeks) (14 Weeks) (52 Weeks) (53 Weeks)
Sales and revenues $ 74.9 $ 79.9 $ 346.2 $ 355.5
Cost of sales and revenues 41.8 43.3 190.0 191.2
Selling, general, and
administrative expenses 33.1 23.6 111.1 96.1
Business transformation
costs - (0.2) - (0.2)
---------- ---------- ---------- ----------
Operating income - 13.2 45.1 68.4
Interest expense (2.0) (2.3) (8.1) (8.6)
Other income, net - 0.4 4.1 3.1
---------- ---------- ---------- ----------
Income (loss) before
taxes (2.0) 11.3 41.1 62.9
Income taxes (benefit) (0.6) 3.9 10.6 24.5
---------- ---------- ---------- ----------
Net income (loss) $ (1.4) $ 7.4 $ 30.5 $ 38.4
========== ========== ========== ==========
Earnings per share:
Basic $ (.10) $ .46 $ 1.98 $ 2.33
========== ========== ========== ==========
Diluted $ (.10) $ .46 $ 1.96 $ 2.28
========== ========== ========== ==========
Dividends per common share $ .02 $ .02 $ .08 $ .08
========== ========== ========== ==========
Average number of shares
Common shares
outstanding 15.1 16.0 15.4 16.4
Equivalent shares on
outstanding stock
options - .2 .1 .4
---------- ---------- ---------- ----------
Shares applicable to
diluted earnings 15.1 16.2 15.5 16.8
========== ========== ========== ==========
MIDAS, INC.
RESULTS OF OPERATIONS
Fourth Quarter 2000 Compared with Fourth Quarter 1999 (Unaudited)
The following is a summary of the Company's sales and revenues for
the fourth quarter of fiscal 2000 and 1999, respectively: ($ Millions)
Percent Percent
2000 to Total 1999 To Total
---------- ---------- ---------- ----------
Replacement parts sales $ 48.3 64.5% $ 52.4 65.6%
Company-operated shop
retail sales 1.7 2.2 1.2 1.5
Royalties and license fees 14.9 19.9 15.5 19.4
Real estate rental revenues 9.7 13.0 10.1 12.6
Other 0.3 0.4 0.7 0.9
---------- ---------- ---------- ----------
Sales and revenues $ 74.9 100.0% $ 79.9 100.0%
========== ========== ========== ==========
Year Ended Fiscal December 2000
Compared with the Year Ended Fiscal December 1999 (Unaudited)
The following is a summary of the Company's sales and revenues for
the years ended fiscal December 2000 and 1999, respectively: ($
Millions)
Percent Percent
2000 to Total 1999 to Total
---------- ---------- ---------- ----------
Replacement parts sales $ 234.4 67.7% $ 234.4 65.9%
Company-operated shop
retail sales 5.8 1.7 10.5 3.0
Royalties and license fees 65.5 18.9 68.1 19.2
Real estate rental revenues 39.2 11.3 40.2 11.3
Other 1.3 0.4 2.3 0.6
---------- ---------- ---------- ----------
Sales and revenues $ 346.2 100.0% $ 355.5 100.0%
========== ========== ========== ==========
MIDAS, INC.
BALANCE SHEET
(In millions)
December December
2000 1999
--------- ---------
Fiscal Year End Unaudited
Assets:
Current assets:
Cash and cash equivalents $ 1.8 $ 13.1
Receivables, net 45.6 43.5
Inventories 76.9 63.5
Other current assets 24.3 20.7
--------- ---------
Total current assets 148.6 140.8
Property and equipment, net 149.9 140.5
Other assets 25.0 24.6
--------- ---------
Total assets $ 323.5 $ 305.9
========= =========
Liabilities and equity:
Current liabilities:
Short-term debt $ 19.8 $ 1.8
Accounts and dividends payable 31.3 26.4
Income taxes payable 1.1 1.6
Accrued expenses 27.8 26.4
--------- ---------
Total current liabilities 80.0 56.2
Long-term debt 84.1 101.0
Obligations under capital leases 9.1 9.3
Deferred income taxes and other liabilities 20.1 24.8
--------- ---------
Total liabilities 193.3 191.3
--------- ---------
Shareholders' equity:
Common stock ($.001 par value, 100 million
shares authorized, 17.3 million shares
issued) and paid-in capital 24.6 26.8
Treasury stock, at cost (2.3 million
shares and 1.6 million shares) (55.6) (44.9)
Notes receivable from common stock sold
to officers (6.1) (6.1)
Retained income 173.2 144.0
Cumulative other comprehensive
income (loss) ( 5.9) (5.2)
--------- ---------
Total shareholders' equity 130.2 114.6
--------- ---------
Total liabilities and equity $ 323.5 $ 305.9
========= =========