TBC Expects to Report Higher Earnings for 2000
26 April 2000
TBC Expects to Report Higher Earnings for 2000
MEMPHIS, Tenn.--April 26, 2000--Speaking at the annual meeting of stockholders today, Larry Day, President and Chief Executive Officer, said that TBC Corporation (NASDAQ:TBCC) expects to report higher sales and earnings for 2000.For 1999 TBC reported net sales of $743.1 million and net income of $20.1 million, or $0.95 per share, excluding a net after-tax charge from special items of $2.1 million, or $0.10 per share. The Company reported first-quarter results yesterday that included record earnings of $0.19 per share and a 9.4% gain in revenues to $177.4 million.
Day remarked, "We are encouraged by the underlying momentum in our marketing program, and the prospects for a firmer trend in industrywide pricing further enhance this outlook. We believe that 2000 as a whole will represent noteworthy growth in both net sales and earnings per share. TBC continues to excel in industrywide surveys of independent tire dealers; and our Big O Tire subsidiary consistently receives top rankings in independent polls of consumers. Based on the combined sales of our four primary brands, we are more than twice the size of the second-largest factor in the private brand segment of the replacement tire market. This prominent competitive presence and our strong balance sheet support our confidence about TBC's growth potential."
Day added, "Against the backdrop of the progress anticipated for the full year, we are disappointed by the price weakness in our shares thus far in 2000. We recognize the competitive character of the replacement tire market, but believe that TBC's continued expansion validates our fundamental growth strategy. Our core objective remains providing value to independent tire retailers who have increased their share of the replacement passenger tire market from 54% in 1990 to 60% in 1999. At the same time, we expect additional opportunities to capitalize on our strong financial position by strategic acquisitions that solidify our position as the nation's largest marketer of private brand tires. The consolidation within the replacement tire market has accelerated in recent years, and we have successfully exploited this through acquisitions including Big O Tires in 1996 and Carroll's, Inc. in 1998. The success of these transactions presents a compelling argument as we prioritize the various investment opportunities available to the Company."
At the annual meeting, stockholders re-elected Marvin E. Bruce, Lawrence C. Day and Robert H. Dunlap for three-year terms as directors. Stockholders also approved the Company's 2000 Stock Option Plan.
TBC Corporation is one of the nation's largest independent marketers and distributors of private brand tires for the automotive replacement market.
Statements in this press release or otherwise attributable to the Company regarding the Company's business which are not historical fact, including those regarding growth in its business, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Many factors could cause the Company's actual results to differ materially from those expressed in the forward-looking statements made by or on behalf of the Company including, without limitation, trends in consumer demand for replacement tires, changes in tire prices, the availability of tires from suppliers, the impact of competitive tire brands, the ability to achieve and manage growth, and other risks detailed in the Company's Annual Report on Form 10K and other filings with the SEC.