TBC Corp. reports record second quarter sales and earnings
TBC Corp. today reported record sales and earnings per share for the second quarter ended June 30, 2002.
Second quarter 2002 net income increased 23% to $6.8 million from $5.5 million in the year-earlier second quarter.
Net sales reached a record $286.7 million for the quarter, 12% higher than the $255.5 million reported in the second quarter of 2001, the company said.
TBC's total unit tire volume grew at a 7.5% rate during the quarter, substantially better than the industry, the company noted. In addition, same-store sales through company-operated and franchised retail locations were up 6.4% in the quarter compared to a year earlier.
For the first six months of 2002, net income rose to $11.6 million, a 24% increase compared to the $9.4 million reported a year ago.
Net sales for the first six months climbed 11% to $536.4 million compared to $482.7 million in the year-ago period.
For the first six months of 2002, TBC posted total unit tire volume growth of 8.5% compared to an industry decline. Same-store sales in the company's retail segment increased 6.4% in the year-to-date period vs. a year ago.
Larry Day, president and CEO, said, "We again expanded our retail presence, with a net total of 29 tire and service centers added to our Tire Kingdom and Big O retail networks in the second quarter. We now have a combined total of 737 retail locations, compared to 686 outlets at the beginning of 2002 and 658 just one year ago.
"The sales performance by our wholesale segment was also gratifying, and continued to be aided by new product introductions and sales initiatives.
"Sales at both the retail and wholesale levels also benefited somewhat from a favorable tire pricing environment that led to increases in average tire sale prices in both the second quarter and first six months," Day said.
"Early indications are that our new SUV tires have been well received by consumers. One new SUV line was introduced in March and another line was added in June. Plans call for each of our five brands to have a new SUV tire line within 12 months, which should enable us to capture an even larger share of this growing market segment.
"Finally, we are focused on optimizing our financial performance through leveraging the strengths of both our retail and wholesale segments. We intend to continue to participate in the retail consolidation happening in the industry and believe we are well positioned to take advantage of further opportunities that may become available."