TBC Corp. posted record year-end net income ($21 million) and net sales ($1 billion) in 2001.
The company's net sales were 12% higher than in 2000. Net income rose 12%, from $18.7 million to $21 million.
Earnings rose 11% to $0.98 per diluted share in 2001 from $0.88 in 2000. Excluding the prior year one-time item, 2001 income per share was 7% higher than in 2000.
"Our robust performance and record sales are further evidence that our multi-channel marketing approach is revitalizing growth opportunities for our company and enhancing value for our shareholders," says Larry Day, TBC's CEO and president.
"We are especially pleased with our retail operations, which contributed an increased portion of sales and income and supported market share gains in 2001. Our Big O network of franchised retail stores grew to 504 locations from 462 a year ago, and Tire Kingdom added 19 company-owned retail service centers during 2001.
"By expanding these retail distribution channels, TBC increased control over distribution of our branded tires and captured greater value from our tire sales."
Day says TBC plans to further expand its retail network in the year ahead, with new locations planned for both Tire Kingdom and Big O Tires.
TBC also performed well in the fourth quarter. Its $5.6 million fourth-quarter net income was 27% higher than in 2000.
Net sales in the fourth quarter were down 1%, from $251 million in 2000 to $247.7 million last year. The company says the fourth-quarter sales decline was not unexpected for two reasons:
* the "general economic slowdown" in the last half of 2001.
* the announced industry price increases effective Jan. 1, 2001, which led to "unusually strong" advance sales.
