TBC reports record Q2 sales, earnings
TBC Corp.'s net sales for the second quarter totaled $328.8 million, an increase of nearly 15% over Q2 2002 numbers.
TBC's second quarter net income grew 15% over previous year figures to $7.9 million.
TBC officials credit progress to "increased service revenues at (the Memphis, Tenn-based private brand marketer's) company-owned retail stores, including the Merchant's Tire & Auto locations acquired in April 2003."
TBC President and CEO Larry Day says "the integration of the Merchant's stores proceeded well ahead of plan" with "stronger-than-anticipated results."
TBC's private brand offerings have grown to comprise more than 30% of the ex-Merchant's stores' sales, according to Day.
TBC has 346 Tire Kingdom outlets (of which the former Merchant's shops are a part) and 560 Big O Tires Inc. franchise locations.
During Q2 2003, the company added six Tire Kingdom stores and 13 Big O franchises, representing a 23% boost in its store base since June 2002.
While retail performed well, TBC's wholesale business "declined during the quarter, as the weaker economic environment had a considerable impact on many of the nation's smaller independent tire dealers."
However, Day expects TBC's wholesale business to improve as the company benefits from cost control efforts and new sales initiatives.