American Tire Distributors Inc. reported net income of $4.4 million on consolidated net sales of $285.7 million for the second quarter ended June 28, 2003.
That compares to net income of $1.9 million on consolidated net sales of $277.6 million for the same period a year ago.
"For the second consecutive quarter, we have been able to outpace the industry’s average growth rate despite continued weakness in the replacement market," says Dick Johnson, chairman and CEO of American Tire Distributors.
Selling, general and administrative expenses increased by $700,000, primarily due to increased cost associated with the company’s group health plan in 2003 vs. the second quarter of 2002.
For the first six months of the year, consolidated net sales of $543.3 million were up 2.6% compared to a year ago. American Tire Distributors posted net income of $5.4 million, down almost 83% from the first half of 2002. However, the net income from 2002 included a $30 million net gain on repurchase of the company’s Series D senior notes on Mar. 27.
Overall, selling, general and administrative expenses decreased by $1.4 million for the first six months of the year. As a result of increased sales and reduced operating costs, EBITDA (earnings before interest, taxes, depreciation and amoritization) increased for the same period to $20.1 million vs. $17.4 million for the first six months of 2002.
