Midas Reports First Quarter Earnings Per Share of $.21
ITASCA, Ill.--April 19, 2001--Midas, Inc. today announced its results for the first quarter ended March 31, 2001, in line with previous guidance.Operating income for the first quarter of 2001 was $7.3 million and net income was $3.2 million. Earnings per diluted share for the quarter were $0.21. In 2000, operating income was $12.5 million. Last year's net income in the first quarter was $7.5 million and earnings per diluted share were $.47, including $800,000 or $.05 per share, from a non-recurring real estate gain.
The company said the decreases in first quarter operating income, net income and earnings per share were the result of costs associated with strategic investments and programs designed to position the company for future growth. Those initiatives include operating losses from the company's expanding network of Parts Warehouse, Inc. (PWI) quick-delivery parts sites, higher depreciation and amortization expense because of recent investments in information systems and costs associated with a revised customer freight payment policy.
Sales and revenues for the first quarter of 2001 were $77.5 million, down 1.4 percent from $78.6 million in 2000. Royalties and license fees were up slightly to $15.8 million from $15.5 million in 2000. Replacement part sales were $50.0 million for the quarter, down 4.8 percent from $52.5 million last year. The decrease in replacement parts sales is a reflection of the continued decline in Midas' traditional wholesale sales and the elimination of certain low-margin sales in PWI.
"We are pleased that we delivered a three percent increase in same-store retail sales, better than most others in our industry, and that we met our first quarter earnings target," said Wendel H. Province, Midas' chairman and chief executive officer.
"During the quarter, we opened 23 new PWI locations and closed one. All 51 of these sites are strategically located to assist Midas dealers in serving their customers with the growing demand for a broader assortment of replacement parts," he said.
"Because of today's uncertain retail market conditions, particularly in the automotive aftermarket, it is increasingly difficult to provide specific short-term earnings guidance," Province said. "However, for the second quarter, we are estimating earnings per share in a range of $.45 to $.50. Our estimate of $1.45 per share for the full-year 2001 remains unchanged."
MIDAS, INC.
CONDENSED STATEMENTS OF OPERATIONS
(In millions, except for earnings and dividends per share)
(Unaudited)
First Quarter
Fiscal Fiscal
2001 2000
(13 Weeks) (13 Weeks)
Sales and revenues $ 77.5 $ 78.6
Cost of sales and revenues 40.7 41.9
Selling, general, and
administrative expenses 29.5 24.2
Operating income 7.3 12.5
Interest expense (2.3) (2.1)
Other income, net 0.2 1.9
Income before taxes 5.2 12.3
Income taxes 2.0 4.8
Net income $ 3.2 $ 7.5
Earnings per share:
Basic $ .21 $ .48
Diluted $ .21 $ .47
Dividends per common share $ .08 $ .02
Average number of shares
Common shares outstanding 15.0 15.7
Equivalent shares on
outstanding stock options - .2
Shares applicable to diluted earnings 15.0 15.9
MIDAS, INC.
RESULTS OF OPERATIONS
2001 First Quarter Compared with 2000 First Quarter (Unaudited)
The following is a summary of the Company’s sales and revenues for
the first quarter of fiscal 2001 and 2000, respectively: ($ Millions)
Percent Percent
2001 to Total 2000 to Total
Replacement parts sales $ 50.0 64.5% $ 52.5 66.8%
Company-operated shop
retail sales 1.7 2.2 0.4 0.5
Royalties and
license fees 15.8 20.4 15.5 19.7
Real estate rental
revenues 9.6 12.4 9.9 12.6
Other 0.4 0.5 0.3 0.4
Sales and revenues $ 77.5 100.0% $ 78.6 100.0%