TBC reports sales increases, 'positive momentum'
TBC Corp.'s net sales for the fourth quarter of 2004 rose to $487.8 million, a 31.6% increase over fourth quarter 2003 results.
TBC's total unit tire sales grew 21% during the fourth quarter, while same store sales for its retail segment increased nearly 3%.
TBC's 4Q 2004 net income was $12.1 million versus $9.6 million during 4Q 2003.
Fourth quarter 2004 results included an after-tax charge of $900,000 "due to the final disposition of discontinued inventories purchased" in connection with TBC's acquisition of National Tire & Battery (NTB) from Sears, Roebuck & Co. in late 2003.
"TBC's retail segment benefited from the full-quarter contribution of the NTB stores as well as a favorable service sales mix and increased sell-through of higher-margin, private brand tires," say TBC officials.
They also report that TBC's wholesale business performed well "with higher sales as a result of volume gains and price increases."
"Fourth quarter results demonstrate positive momentum in both our retail and wholesale units," says TBC CEO and President Larry Day.
Day says TBC was pleased with the performance of its company-owned stores during 2004, "and Big O turned in a solid performance for the quarter and the year."
As of Dec. 31, 2004, TBC had 1,172 retail stores overall, with 605 company-owned locations and more than 560 Big O franchise stores.
TBC's Tire Kingdom Inc. chain is the largest independent tire dealership in North America, according to Modern Tire Dealer data.
For the full year, TBC's sales increased 40.7% to $1.8 billion. Its 2004 net income was $37.6 million versus $32.2 million the year before.
TBC's total unit tire sales jumped nearly 20% in 2004 from previous-year levels.