TBC Corp.'s net sales for the first quarter of 2005 totaled $466.4 million, a 7.5% increase from same-period 2004 results and a record for the company.
TBC's net income for the first quarter was $6.2 million vs. $5.5 million during the first quarter of 2004.
The Memphis, Tenn.-based company's total unit tire sales jumped 3.1% while its same store retail sales grew 2.7%.
"Our retail operations benefited from growth in mechanical services and stronger private brand penetration," says TBC CEO and President Larry Day.
"However, retail performance was impacted by increased spending, primarily for additional advertising, which did not produce the level of sales we had anticipated in this seasonally slower time."
TBC's wholesale business "performed well" during the first quarter "and exceeded our expectations. Stronger sales of specialty products sourced in China, as well as robust buying activity driven by anticipated price increases, contributed to wholesale's exceptional results."
TBC had a combined total of 1,172 stores in its retail network with 609 company-owned locations and 563 franchised Big O Tires Inc. stores, as of March 31.
TBC plans to add 20 to 30 stores to its company-operated retail network and 15 to 20 new Big O franchise locations in 2005.
TBC will host a conference call on Tuesday, April 26, 2005, at 10:00 a.m. Eastern time, to discuss first quarter 2005 results.
A live Webcast of the conference call will be available by visiting TBC's Web site, http://www.tbccorp.com.
The Webcast will be archived until May 24, 2005.
