American Tire Distributors Inc. (ATD) earned $3.3 million in net income during the third quarter, which ended Sept. 28.
Compared to third-quarter 2001 results, ATD's net sales dropped 4.5%. However, thanks in part to a 20.7% reduction in operating expenses, the company reported a 168% increase in net income (the company posted a net loss of $4.8 million during the third quarter of last year).
Highlights of the company's operating results include the following:
* For the second consecutive quarter, ATD recorded positive earnings.
* Third-quarter earnings before interest, taxes, depreciation and amortization (EBITDA) increased from $3.1 million to $11.8 million vs. the same period 12 months ago.
* Sales for the quarter were $280.1 million, a decline of $13.1 million.
* Operating expenses decreased by $10.9 million in the third quarter 2002. That total represented 14.9% of sales, compared to 18% in the third quarter 2001.
"In an industry where sales dropped 7% nationwide, we actually increased our market share a little," says Dick Johnson, CEO and president.
"Thanks to our careful expense controls, we were able to almost double the $1.9 million in net income we had in the second quarter. Even in these tough times, we've been able to show improvement as the year goes on."
Net sales for the nine months ended September 28 declined 6.2% -- to $809.2 million -- vs. $862.8 million in the nine-month period last year. Excluding discontinued operations and extraordinary items, the company reported earnings of $5 million for the first nine months of this year, compared to a $12.8 million loss in 2001.
Nine-month operating expenses decreased by $32.5 million this year, which represents 15.5% of sales; in 2001, the same operating expenses represented 18.4% of sales.
EBITDA increased from $16.7 million in the nine-month period 2001 to $29.3 million in the comparable period 2002.
