American Tire Distributors Reports $37.4 Million Net Income; Net Income Increases $68.4 Million for 2002

    CHARLOTTE, N.C.--March 28, 2003--American Tire Distributors, Inc., a nationwide distributor of tires, wheels and automotive accessories, today announced its 2002 operating results for the year ended December 28, 2002.
    American Tire Distributors recorded significantly increased profits despite a 4.3% decline in net sales. Due in large part to a 19.3% reduction in operating expenses, American Tire Distributors reported a 2002 pre-tax income of $12.9 million from continuing operations, excluding the extraordinary gain, compared to a pre-tax loss of $23.8 million in 2001. Net income, including the extraordinary gain, increased $68.4 million to $37.4 million for the year ended December 28, 2002 compared to a net loss of $30.9 million for the year ended December 29, 2001.
    Earnings before interest, taxes, depreciation and amortization (EBITDA) increased $17.9 million, from $22.4 million for 2001 to $40.2 million for 2002. Sales declined by $47.5 million, amid an industry-wide slowdown, to $1.060 billion versus $1.107 billion in 2001. Operating expenses decreased by $39.8 million, to $166.5 in 2002 versus $206.3 million in 2001.
    "In 2002, we worked hard to grow market share, despite an industry-wide sales decline and our decision to totally exit the retail business," said Richard P. "Dick" Johnson, President and Chief Executive Officer of American Tire Distributors. "Through our diligent management of expenses and a tight focus on true customer service, we actually increased our market share and our profits. Our goal has been to make steady improvement, even in these tough times."
    The 2002 net income includes an extraordinary gain in the amount of $30.1 million related to the Company's repurchase of its Series D Senior Notes, announced April 12, 2002, and included in the first-quarter results. The reported loss in 2001 includes a $12.6 million loss on disposal of discontinued operations.

    About American Tire Distributors

    American Tire Distributors 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.