Heafner Continues Record Results in First Quarter
6 May 1999
Heafner Continues Record Results in First Quarter
Business Editors
CHARLOTTE, N.C.--May 5, 1999--Heafner Tire
Group/J.H. Heafner Company today announced continued record operating
results in the quarter ended March 31, 1999.
Net sales for the quarter ended March 31, 1999 totaled $239.8
million, an increase of $150.7 million, or 169%, from sales in the
first quarter of 1998 of $89.1 million. Net sales increased in the
first quarter of 1999 by $26.4 million, or 12.4%, from pro forma sales
of $213.4 million in the first quarter of 1998, including the results
of acquired companies in the prior year. Operating earnings before
interest, taxes, depreciation, and amortization (EBITDA) totaled $7.3
million in the quarter ended March 31, 1999, an increase of $4.8
million, or 190%, from $2.5 million in the first quarter of 1998.
EBITDA increased in the first quarter of 1999 by $1.2 million, or
19.7%, from pro forma EBITDA of $6.1 million in the first quarter of
1998.
"I continue to remain very pleased with the overall financial
performance of the Company," said William H. Gaither, President and
CEO. "Once again we achieved strong operating results in both the
Southeast and California. Sales in the first quarter grew at their
highest rate since the major transactions we completed last May; led
by Competition Parts Warehouse in California, which grew sales by more
than 19% in the quarter. Our newest acquisition, California Tire, also
performed well with a strong first quarter."
Mr. Gaither continued, "While the first calendar quarter is
historically the weakest quarter in our industry, the Company not only
increased EBITDA substantially from the first quarter of last year,
but also improved EBITDA as a percentage of sales over that of the
fourth quarter of 1998. I remain optimistic about 1999 in total. We
believe that sales should continue to significantly outperform the
industry growth rate. Additionally, I believe that the benefits of the
acquisitions the Company completed last year will continue to
contribute to earnings for the remainder of the year".
Heafner Tire Group is the country's largest independent marketer
of tires and tire-related products. The Company includes Heafner-Itco
Tires & Products in the Southeast, and Competition Parts Warehouse
(CPW), Winston Tire, and California Tire, in California and Arizona.
It operates over 65 distribution centers and 210 retail tire and auto
service stores, and has revenues in excess of $1 billion. For
information contact Donald C. Roof, CFO at (704) 423-8989.
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Heafner Tire Group
Financial Highlights
(in million $)
Quarter ended
3-31-99 3-31-98
Reported Results:
Net Sales $239.8 $ 89.1
EBITDA 7.3 2.5
Pro Forma Results(1):
Net Sales $239.8 $213.4
EBITDA(2) 7.3 6.1
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(1) - results assume that the inclusion of ITCO, CPW, and Cal
Tire had occurred at January 1, 1998. CPW was acquired by Heafner on
May 20, 1998, the merger with ITCO also occurred on May 20, 1998, and
the acquisition of Cal Tire occurred on January 12, 1999.
(2) -no adjustments have been recorded for unrealized synergies
in these amounts. Adjustments have been made in 1998 reflecting the
pro-forma handling of certain vendor rebates.
Certain information included in this release is forward-looking.
Such forward-looking information must be considered in light of
important risks and uncertainties that could materially alter results
in the future from those expressed in any forward-looking statements
made by, or on behalf of, the Company. These risks and uncertainties
include, among others, the ability of the Company to successfully
implement its business strategy, integrate the new divisions, and
market and sell new products, as well as general economic conditions
and competition in the industry. Additional information on factors
that could potentially affect the Company or its financial results may
be found in the Company's filings with the Securities and Exchange
Commission.