TBC Reports Record First Quarter Earnings Per Share
25 April 2000
TBC Reports Record First Quarter Earnings Per Share; 9 Percent Gain in Tire Shipments Well Surpasses Industry Average
MEMPHIS, Tenn.--April 24, 2000--TBC Corporation (Nasdaq/NM:TBCC) today reported record first quarter earnings of $0.19 per share for the three months ended March 31, 2000, up from earnings of $0.18 per share a year ago. Net sales for the first quarter increased 9.4% to $177.4 million compared with $162.2 million, and net income totaled $3.9 million versus $3.8 million in the first quarter of 1999."The new high in earnings per share for the first quarter marks a strong start for TBC in 2000," said Larry Day, President and Chief Executive Officer. "This outstanding performance was driven by a gain of 8.9% in TBC's unit shipments of tires. This increase was well ahead of the industry, highlighting the success of programs we have implemented to enhance our customer service. We are clearly benefiting from new product introductions and other marketing initiatives. Initial response has been excellent for our new premium touring tires which embody a revolutionary new production process and offer a 100,000-mile warranty. We are also finding a very positive market acceptance to the completely new line-up of tires under our Sigma brand that has differentiated these tires from our Multi-Mile and Cordovan brands."
Day added, "We are encouraged by the outlook for some industry-wide price increases that are scheduled to become effective at mid-year. We are also gratified by the tangible returns that are being generated from the investments made in recent years to extend control over the marketing channels for our tires. The Carroll's distribution network that we acquired in late 1998 is benefiting from the addition of four new centers and increasing both its penetration into existing markets as well as its geographic coverage of the Southeast. We are also continuing to expand our Big O operation. During 1999 we opened a net of 18 locations and ended the year with 454 stores. The Big O system now encompasses locations in 19 states and 39 associate dealers in Canada. Our plans for 2000 are to open a net of 20-25 new Big O locations, either as new stores or as conversions of other retail tire locations. By continuing to pursue these types of opportunities, we intend to sustain the market leadership that enhances our strategic alliances with manufacturers and in turn, enables us to offer customers the broadest line of tires and the latest in tire technology."
TBC Corporation is one of the nation's largest independent marketers and distributors of tires for the automotive replacement market.
This release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks, uncertainties and other factors which could cause actual results to differ materially, including but not limited to, the degree of competition in the replacement tire industry, changes in consumer spending on automobiles and replacement automotive products and the Company's ability to continue to obtain products in sufficient quantity and at competitive prices. 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.
TBC CORPORATION
Condensed Consolidated Financial Results
(Unaudited)
Three Months Ended
March 31,
2000 1999
----------------------------
Net sales $177,389,000 $162,202,000
Income before income taxes 6,529,000 6,263,000
Income taxes 2,584,000 2,457,000
Net earnings $ 3,945,000 $ 3,806,000
Earnings per share
(basic and diluted) $ 0.19 $ 0.18
Average number of shares
outstanding 21,201,000 21,181,000