Midas Reports First Quarter Earnings Per Share of $.47
21 April 2000
Midas Reports First Quarter Earnings Per Share of $.47, Including $.05 Non-Recurring Gain; Up From $.37 in 1999
ITASCA, Ill.--April 20, 2000--Midas, Inc. (NYSE: MDS), today announced its results for the first quarter ended April 1, 2000.The 2000 first quarter earnings were $7.5 million, including a non-recurring gain of $800,000 from the sale of the company's former exhaust manufacturing plant near Chicago, which closed last October. Earnings per diluted share for the quarter were $.47, including $.05 from the non-recurring real estate gain.
Excluding the real estate gain, earnings per share were up 14 percent from $.37 per diluted share in 1999.
Sales and revenues for the first quarter of 2000 were $78.6 million, down 7 percent from $84.7 million reported last year.
"Most of the decline in sales and revenues was the result of the strategic decision to sell virtually all company-operated Midas shops in North America," said Wendel H. Province, Midas' chairman and chief executive officer.
"We are encouraged by the improvement in retail and wholesale sales in February and March, after a slow start to the quarter in January," he said.
"At the end of the first quarter, the majority of our shops in North America have completed their new image upgrades, which include new logo signs and colors, and have added the new maintenance services required for the New Midas," Province said. "This will enable us to launch the New Midas during the second quarter, which should enhance our retail sales and profits."
Diluted earnings per share in the first quarter of 2000 are based on 15.9 million weighted average shares outstanding, compared to 17.5 million in 1999. Midas has repurchased approximately 2.6 million shares of its common shares under a board-authorized repurchase program of 5.0 million shares.
Midas is one of the world's largest providers of automotive service, providing exhaust, brake, steering and suspension services, as well as batteries and maintenance services at 2,700 franchised and licensed Midas shops in 19 countries, including more than 2,100 in the United States and Canada.
NOTE: This news release contains certain forward-looking statements that are based on management's beliefs as well as assumptions made by and information currently available to management. Such statements are subject to risks and uncertainties, both known and unknown, that could cause actual results, performance or achievement to vary materially from those expressed or implied in the forward-looking statements. The company may experience significant fluctuations in future results, performance or achievements due to a number of economic, competitive, governmental, technological or other factors. Additional information with respect to these and other factors, which could materially affect the company and its operations, is included in the company's filings with the Securities and Exchange Commission, including the company's 1999 annual report on Form 10-K.
MIDAS, INC.
CONDENSED STATEMENTS OF OPERATIONS
(In millions, except for earnings and dividends per share)
(Unaudited)
First Quarter
Fiscal Fiscal
2000 1999
---- ----
(13 Weeks) (13 Weeks)
Sales and revenues $ 78.6 $ 84.7
Cost of sales and revenues 41.9 44.9
Selling, general, and administrative
expenses. 24.2 27.3
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Operating income 12.5 12.5
Interest expense (2.1) (2.2)
Other income, net 1.9 0.5
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Income before taxes 12.3 10.8
Income taxes 4.8 4.3
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Net income $ 7.5 $ 6.5
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Earnings per share:
Basic $ .48 $ .39
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Diluted $ .47 $ .37
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Dividends per common share $ .02 $ .02
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Average number of shares
Common shares outstanding 15.7 16.9
Equivalent shares on outstanding
stock options .2 .6
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Shares applicable to diluted earnings 15.9 17.5
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MIDAS, INC.
RESULTS OF OPERATIONS
2000 First Quarter Compared with 1999 First Quarter (Unaudited)
The following is a summary of the Company's sales and revenues for
the first quarter of fiscal 2000 and 1999: ($ Millions)
Percent Percent
2000 to Total 1999 to Total
---- -------- ---- --------
Replacement parts sales $52.5 66.8% $53.6 63.3%
Company-operated shop retail sales 0.4 0.5 4.8 5.7
Royalties and license fees 15.5 19.7 15.7 18.5
Real estate rental revenues 9.9 12.6 9.9 11.7
Other 0.3 0.4 0.7 0.8
----- -------- ----- --------
Sales and revenues $78.6 100.0% $84.7 100.0%
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