Brad Ragan Inc. Announces Second Quarter Results

23 July 1998

Brad Ragan Inc. Announces Second Quarter Results

    CHARLOTTE, N.C.--July 23, 1998--Brad Ragan Inc. (ASE:BRD) today announced second quarter earnings for 1998 of $1,467,000, or $0.67 per share, compared to $818,000, or $0.37 per share, in the second quarter of 1997. Earnings per share are the same on both a basic and fully diluted basis. The increased earnings were accompanied by an increase in revenues for the quarter of 8.8% to $73.4 million. On a same-store basis, quarterly net sales grew by 11.3% in the Company's retail segment and 7.5% in the commercial segment.
    For the six month period ended June 30, 1998, the Company reported revenues of $131.0 million with net income of $957,000, or $0.44 per share. Comparable 1997 revenues were $125.0 million with net income of $281,000, or $0.13 per share.
    The Company attributed the increased earnings for the quarter to growth in new tire sales, increased sales of home products merchandise and growth in automotive and commercial service sales.
    Separately, the Company announced that Michael R. Thomann, formerly president, CEO and vice chairman of the board had resigned from the Company effective July 15, 1998 to become marketing director, commercial tires at The Goodyear Tire & Rubber Co. and that the Board of Directors had elected William P. Brophey president, CEO and vice chairman of the board. Previously, Mr. Brophey held the position of vice president, Original Equipment Tire Sales Worldwide at Goodyear. Mr. Brophey served as president and CEO of the Company and a member of the Board of Directors from October 1988 to April 1996. Goodyear owns approximately 75% of the company's outstanding common stock.
    Brad Ragan, Inc. is the largest United States producer of retreaded tires for off-highway vehicles. The company distributes new and retreaded off-the-road and truck tires through a network of 51 commercial outlets in 19 states. The Company also operates a chain of 120 retail stores in the Southeast, featuring products and services for the auto and home.

                        BRAD RAGAN, INC. 
                      Comparative Results 
                          (Unaudited) 
         (000's omitted - except share and per share data)
 
                             Three Months Ended      Six Months Ended
                                  June 30,                June 30 
                              1998       1997        1998        1997 
 
Revenues                   $73,390   $ 67,477     $ 131,035  $124,962 
Income before taxes          2,522      1,217         1,612       333 
Provision for 
 income taxes                1,055        399           655        52 
Net income                   1,467        818           957       281 
Net income 
 per common share          $   .67   $    .37     $     .44   $   .13 
Weighted average number of
 common shares 
 outstanding             2,190,619  2,190,619     2,190,619 2,190,619