TBC Reports Record Quarterly Sales
25 July 2000
TBC Reports Record Quarterly Sales
MEMPHIS, Tenn. - TBC Corporation today reported results for the three months ended June 30, 2000 that included a new quarterly high in net sales.Net sales for the second quarter increased 10.0% to $206.4 million compared with $187.7 million in the year-earlier period. Net income for the second quarter totaled $5.0 million, or $0.24 per share, compared with $2.3 million, or $0.11 per share. Net sales for the first half increased 9.7% to $383.8 million compared with $349.9 million in the first half of 1999. Net income for the first half was $9.0 million, or $0.42 per share, compared with $6.1 million, or $0.29 per share.
The net income for the three and six months ended June 30, 1999 included a special charge of $2.8 million, or $0.13 per share after taxes, related to the write-off of a note receivable from a former distributor that had been the subject of litigation since 1989.
"We achieved substantial progress during the second quarter in positioning TBC for future growth," said Larry Day, President and Chief Executive Officer. "As in the first period, we outpaced the industry in terms of unit shipments of tires. Through the first half our volume is up 5.3% from a year ago. This gain represents a tangible, positive return on the actions we have taken to strengthen our marketing program with an emphasis on delivering consistently superior customer service. Against the backdrop of a highly competitive replacement tire industry, TBC's continuing success is directly dependent on our ability to provide customers with selection, availability and competitive prices. We are especially pleased with the response thus far this year to our revamped Sigma line of tires which now gives us the flexibility of having three strong brands to exploit in both our wholesaling and retailing operations."
Day added, "A highlight of the quarter was our acquisition in June of Tire Kingdom. We are proceeding well with our plan for assimilating the Tire Kingdom organization into TBC. We only received a partial contribution from the acquired assets during the second quarter, but our sales will benefit fully from the incremental volume during the second half. Our focus over the remainder of this year will be on realizing the procurement savings and other synergies that will enable Tire Kingdom to be accretive to earnings in 2001. We are excited about the opportunity that Tire Kingdom is presenting to TBC to expand a well-established retail tire sales and service network and remain confident that this investment will prove to be a vital element in our ability to realize long-term growth that in turn will build value for our shareholders."
TBC Corporation is one of the nation's largest independent marketers and distributors of tires for the automotive replacement market.
TBC CORPORATION
Condensed Consolidated Financial Results
(Unaudited)
Three Months Ended
June 30,
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2000 1999
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Net sales $206,434,000 $187,664,000
Income before income taxes 8,194,000 3,980,000
Income taxes 3,185,000 1,670,000
Net earnings $ 5,009,000 $ 2,310,000(a)
Earnings per share (basic and diluted) $ 0.24 $ 0.11(a)
Average number of shares outstanding 21,215,000 21,192,000
Six Months Ended
June 30,
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2000 1999
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Net sales $383,823,000 $349,866,000
Income before income taxes 14,723,000 10,243,000
Income taxes 5,769,000 4,127,000
Net earnings $ 8,954,000 $ 6,116,000(a)
Earnings per share (basic and diluted) $ 0.42 $ 0.29(a)
Average number of shares outstanding 21,208,000 21,187,000
(a) Results for the three and six months ended June 30, 1999 include
an after-tax charge of $2.8 million, or $0.13 per share, related to
the write-off of a note receivable from a former distributor that had
been the subject of litigation since 1989.