American Tire Distributors reports net income of $37.4 million

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American Tire Distributors Inc. (ATD) recorded net income of $37.4 million for 2002 -- a 221% gain over fiscal 2001.

The significant increase in net income was accomplished despite a 4.3% decrease in net sales (from $1.107 billion in 2001 to $1.060 billion). It includes an extraordinary gain of $30.1 million related to the company’s repurchase of its Series D Senior Notes, announced April 12, 2002.

The reported loss in 2001 includes a $12.6 million loss on disposal of discontinued operations.

"In 2002, we worked hard to grow market share, despite an industry-wide sales decline and our decision to totally exit the retail business," says Dick Johnson, CEO and president.

"Through our diligent management of expenses and a tight focus on true customer service, we actually increased our market share and our profits."

ATD reported a 2002 pre-tax income of $12.9 million from continuing operations, excluding the extraordinary gain, compared to a pre-tax loss of $23.8 million in 2001. ATD attributed this in large part to a 19.3% reduction in operating expenses.

Earnings before interest, taxes, depreciation and amortization increased $17.9 million, from $22.4 million in 2001 to $40.2 million last year.

Operating expenses decreased by $39.8 million, from $206.3 million to $166.5 million.

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