TBC reports record sales, earnings
TBC Corp. reported record third-quarter net sales of $295.5 million for the third quarter ended Sept. 30, 2002. Total sales were nearly 6% higher than the $278.9 million reported a year earlier.
Third-quarter net income of $7.6 million also was a record. It was 28% higher than the $6 million earned in the third quarter of 2001.
For the first nine months of 2002, net income increased 26% to $19.3 million vs. $15.4 million in 2001. Net sales increased 9.2% to $831.9 million.
Same store sales for TBC’s Tire Kingdom and Big O retail tire service centers increased 3% in the quarter compared to the same period a year earlier. Unit tire sales were comparatively even.
For the first nine months, same-store retail sales increased 5.2% compared to the prior year period, while unit tire sales grew 5.3%.
"The execution of our multi-channel marketing strategy enabled us to again outpace the industry in the third quarter," says Larry Day, CEO and president.
"Same store sales comparisons for the third quarter and year-to-date were driven in part by increased mechanical service revenues, as we attracted customers to the broad range of products and services offered by our Tire Kingdom and Big O stores. Additionally, sales benefited from our newly added retail stores.
"In the first nine months of 2002, we expanded our retail network by a net total of 67 stores, with 16 stores added in the third quarter."
TBC's retail segment, made up of 753 stores, represents nearly half of the company's total revenues and more than half of its EBITDA, according to Day. "In addition to driving our top line, the expansion of our retail store base gives us the opportunity to capitalize on our wholesale sourcing strength and better leverage our distribution and administrative costs."
Day says TBC is still in the process of finalizing its marketing and business plan for 2003. "We are confident in our ability to generate year-over-year earnings growth in the range of 10% to 15%."