TBC reports third quarter financial results
Net sales for TBC Corp.'s third quarter ended Sept. 30, 2005, increased 9.5% to $521.6 million compared to $476.5 million in the prior-year period, the company reported.
Same store sales for TBC’s retail segment increased 4.9% in the third quarter. While the company's total unit tire sales increased 1.2%, unit shipments by tire manufacturers increased 2.4%, based on preliminary reports.
Net income increased 41.1% to $15.3 million in the recent quarter, versus $10.8 million in the third quarter of 2004. Earnings in the third quarter of 2004 included a negative impact of 12 cents per diluted share due to four major hurricanes.
Larry Day, TBC president and CEO, said, "Results for the third quarter were in-line with our previously disclosed guidance for the period.
"Additionally, we are on track to complete the proposed sale of TBC Corp. to Sumitomo Corp. of America by the end of the year as previously announced on Sept. 19, 2005, subject to receipt of stockholder approval and required regulatory clearance."
For the nine months ended Sept. 30, 2005, net sales rose 7.6% to $1,470.3 million compared to $1,366.8 million last year. Total unit tire sales increased 1.2% compared to an industry increase of 3%, based on preliminary reports. Retail same-store sales increased 3.9% in the first nine months of 2005.
Net income grew 32.3% to $33.4 million versus $25.3 million reported a year ago. Reported results for the first nine months of 2004 reflect the 12 cent per diluted share negative impact from the four hurricanes as well as the negative impact of EITF 02-16 of .08 cent per diluted share related to a purchase agreement with a major supplier.
At the end of the third quarter, the company had a combined total of 1,174 stores in its retail network with 616 company-operated locations and 558 franchised Big O stores.
TBC has made an initial assessment relative to the financial effects on the business as a result of the recent hurricane activity. There are approximately 33 stores that are currently not operational, mostly due to power outages.
The company continues to monitor the situation on a daily basis and does not believe the impact on the fourth quarter financial results will be material.