ATD posts first quarter results
American Tire Distributors Holdings Inc.'s (ATD) net sales for the first quarter of the year totaled $354.3 million, a 17.6% increase over 1Q 2004 levels.
The Huntersville, N.C.-based company attributes sales growth to the acquisitions of Target Tire and Big State Tire last year. (Target Tire has since been absorbed into ATD's distribution centers.)
Also behind net sales gains was an increase in sales of "certain low-margin private label brands due to better supply and new markets," according to ATD officials.
ATD's first quarter gross profit grew $6.3 million from first quarter 2004, a 10.9% gain.
However, ATD reported a first quarter pre-tax loss of $20.9 million versus pre-tax income of $9.4 million during 1Q 2004.
ATD's pre-tax loss "includes the impact of $28.2 million of transaction expenses relating to the recent purchase of the company by Investcorp."
Investcorp bought ATD earlier this year.
Overall, ATD Chairman and CEO Dick Johnson says ATD "is pleased with the first quarter results and, although books are not closed and the full impact cannot be determined, revenue continues to be strong through April and into May. In addition, the wheel business has begun to show signs of increased activity."