American Tire Distributors Posts $4.4 Million Net Income; Second Quarter Sales Increase By $8.1 Million.Business Editors/Automotive Writers CHARLOTTE, N.C.--(BUSINESS WIRE)--Aug. 12, 2003 American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Tire Distributors, Inc., a nationwide distributor of tires, wheels and automotive accessories, today announced its operating results for the quarter ended June June: see month. 28, 2003. The Company's second quarter net income increased to $4.4 million from $1.9 million in the second quarter of 2002, more than doubling last year's results. Consolidated net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the second quarter improved 2.9% or $8.1 million to $285.7 million versus $277.6 million during the same period of 2002. "For the second consecutive quarter, we have been able to outpace out·pace tr.v. out·paced, out·pac·ing, out·pac·es To surpass or outdo (another), as in speed, growth, or performance. outpace Verb [-pacing, the industry's average growth rate despite continued weakness in the replacement market," said Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a P. "Dick" Johnson, Chairman and Chief Executive Officer of American Tire Distributors. "Our plan is to focus on providing excellent service and exceptional value for the products we sell, and our customers are proving this model successful as they reward us with more of their business." Selling, general and administrative expenses increased by $0.7 million, primarily due to increased cost associated with the Company's group health plan in 2003 versus the same period in 2002. The Company evaluates performance based on several factors, of which the primary financial measure is earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the before interest, taxes, depreciation and amortization and gain on repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of Series D Senior Notes ("EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become "). EBITDA should not be considered an alternative to, or more meaningful than, net income or cash flow as determined in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting . Despite the slight rise in selling, general and administrative expenses, EBITDA continued its significant improvement. EBITDA from continuing operations increased $2.9 million to $12.9 million in the second quarter of 2003 compared to $10.0 million in the second quarter of 2002. The following table is a reconciliation of income from continuing operations to EBITDA:
For the Quarters For the Six Months
Ended Ended
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June 28, June 29, June 28, June 29,
2003 2002 2003 2002
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in thousands in thousands
Income from continuing
operations $4,387 $2,102 $5,373 $31,455
Interest expense 3,930 4,279 7,686 10,608
Provision for income taxes 2,924 1,396 3,582 20,972
Depreciation and amortization
of other intangibles 1,671 2,058 3,430 4,150
(Gain) loss on repurchase of
Series D Senior Notes - 206 - (49,759)
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EBITDA $12,912 $10,041 $20,071 $17,426
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For the six months that ended June 28, 2003 consolidated net sales grew $14.2 million to $543.3 million versus $529.1 million for the same period in 2002. American Tire Distributors reported net income of $5.4 million for the six months ended 2003 compared to net income of $31.1 million for the first six months of 2002. Net income from 2002 included the $30.0 million net gain on repurchase of the Company's Series D Senior Notes transacted March 27, 2002. Overall, selling, general and administrative expenses decreased by $1.4 million for the six-month period ending June 28, 2003. As a result of increased sales and reduced operating costs operating costs npl → gastos mpl operacionales , EBITDA increased for the same period to $20.1 million versus $17.4 million for the first six months of 2002. "Our team is committed to doing the very basics of distributing tires, wheels, and related products well," said Johnson. "We have taken our time to invest in this model and refine our efficiency in serving our customers. By continuing to improve service to our customers, we will continue to reap long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. benefits for the Company." About American Tire Distributors American Tire Distributors is one of the nation's largest independent suppliers of tires to the replacement tire market. It operates 62 distribution centers servicing 35 states. The Company is focused on helping independent tire dealers compete with larger retailers by offering the most complete, coast-to-coast selection of tires, wheels and related products and value-added services A value-added service (VAS) is a telecommunications industry term for non-core services or, in short, all services beyond standard voice calls and fax transmissions. . American Tire Distributors employs more than 200 people in its Charlotte-area headquarters, distribution center and regional hub and 1,900 employees across its nationwide distribution center network. |
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