Heafner Tire Group Quarterly EBITDA Jumps 157%

    CHARLOTTE, N.C.--May 15, 2002--Heafner Tire Group, Inc., a nationwide distributor of tires, wheels and automotive accessories, today announced a rise in its earnings before interest, taxes, depreciation and amortization for the quarter that ended March 31.
    A decline in operating expenses led to an increase in EBITDA to $7.4 million, up from $2.9 million for the same quarter a year ago. Total operating expenses declined 19% to $42.2 million from $52.4 million a year ago.
    Heafner was able to more than double its EBITDA despite a slight decline in sales. Sales from the company's distribution centers that have been open at least a year declined 1.5%, to a total of $251.6 million. Heafner operates 62 distribution centers in 35 states.
    "This kind of earnings improvement - despite a very difficult operating environment - says a lot about our strong control of our operations and finances," said Richard P. "Dick" Johnson, Heafner's President and Chief Executive Officer.
    Heafner reported First Quarter 2002 net income of $29.2 million. After eliminations for extraordinary gain from the company's retirement of $121.4 million in bonds, Heafner reported a net loss of $756,000 versus a net loss of $8.6 million for the first quarter of 2001. That retirement, announced April 12, reduced Heafner's long-term debt by 32%, and will reduce the company's annual interest expense by approximately $8 million.
    "With our tight cost controls, we are in an excellent position to weather the industry wide slowdown and to profit as sales pick up," Johnson said.
    Effective July 4, Heafner Tire Group will become American Tire Distributors. The name change, announced on April 17, is part of Heafner Tire Group's transition from a collection of companies joined through acquisition into a single-minded organization with an unmatched, coast-to-coast footprint. The move follows two years of reorganization during which the company discontinued its tire retailing activities and strengthened its financial condition.

    About Heafner Tire Group

    Heafner Tire Group, Inc. (formerly The J.H. Heafner Company, Inc.) is one of the largest independent suppliers of tires to the replacement tire market in the United States. Heafner operates 62 distribution centers servicing all or parts of 35 states. Heafner sells a broad selection of tires, custom wheels, automotive service equipment and related products made by the leading manufacturers of those products. Heafner has more than 200 employees in its Charlotte-area headquarters, distribution center and regional distribution hub, and 2,000 nationwide.