American Tire Distributors Reports $3.3 Million Net Income

    CHARLOTTE, N.C.--Nov. 12, 2002--American Tire Distributors, Inc., a nationwide distributor of tires, wheels and automotive accessories, today announced its operating results for the quarter ended September 28, 2002.
    For the second consecutive quarter, American Tire Distributors recorded positive earnings despite a third quarter 4.5% drop in net sales. Due in large part to a 20.7% reduction in operating expenses, American Tire Distributors reported net income of $3.3 million for the three months ended September 28, 2002 compared to a net loss of $4.8 million in the third quarter 2001, an increase of $8.1 million.
    Earnings before interest, taxes, depreciation and amortization (EBITDA) increased $8.7 million, from $3.1 million for the third quarter 2001 to $11.8 million for the third quarter 2002. Sales for the quarter ended September 28, 2002 declined by $13.1 million, amid an industry-wide slowdown, to $280.1 million versus $293.2 million in the third quarter 2001. Operating expenses decreased by $10.9 million in the third quarter 2002 representing 14.9% as a percentage of sales compared to 18.0% in the third quarter 2001.
    "In an industry where sales dropped 7% nationwide, we actually increased our market share a little," said Richard P. "Dick" Johnson, President and Chief Executive Officer of American Tire Distributors. "Thanks to our careful expense controls, we were able to almost double the $1.9 million in net income we had in the second quarter. Even in these tough times, we've been able to show improvement as the year goes on."
    Net sales for the nine months ended September 28, 2002 declined 6.2% to $809.2 million versus $862.8 in the nine-month period 2001. Excluding discontinued operations and extraordinary items, the Company reported earnings of $5.0 million for the nine months ending September 28, 2002 compared to a $12.8 million loss in 2001. Operating expenses decreased by $32.5 million in the nine-month period 2002 representing 15.5% as a percentage of sales compared to 18.4% in 2001. EBITDA increased $12.6 million from $16.7 million in the nine-month period 2001 to $29.3 million in the comparable period 2002.

    About American Tire Distributors

    American Tire Distributors, formerly Heafner Tire Group, Inc., is one of the nation's largest independent suppliers of tires to the replacement tire market. It operates 62 distribution centers servicing 35 states. The Company is focused on helping independent tire dealers compete with larger retailers by offering the most complete, coast-to-coast selection of tires, wheels and related products and value-added services. American Tire Distributors employs more than 200 people in its Charlotte-area headquarters, distribution center and regional hub and 1,900 employees across its nationwide distribution center network.