American Tire Distributors Reports $3.3 Million Net Income; Operating Expenses Continue Sharp Decline.Business Editors CHARLOTTE, N.C.--(BUSINESS WIRE)--Nov. 12, 2002 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 September September: see month. 28, 2002. For the second consecutive quarter, American Tire Distributors recorded positive earnings despite a third quarter 4.5% drop in 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 . Due in large part to a 20.7% reduction in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , American Tire Distributors reported net income of $3.3 million for the three months ended September 28, 2002 compared to a net loss of $4.8 million in the third quarter 2001, an increase of $8.1 million. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. , to $280.1 million versus $293.2 million in the third quarter 2001. Operating expenses decreased by $10.9 million in the third quarter 2002 representing 14.9% as a percentage of sales compared to 18.0% in the third quarter 2001. "In an industry where sales dropped 7% nationwide, we actually increased our market share a little," said Richard P. "Dick" Johnson, President and Chief Executive Officer of American Tire Distributors. "Thanks to our careful expense controls, we were able to almost double the $1.9 million in net income we had in the second quarter. Even in these tough times, we've been able to show improvement as the year goes on." Net sales for the nine months ended September 28, 2002 declined 6.2% to $809.2 million versus $862.8 in the nine-month period 2001. Excluding discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. and extraordinary items, the Company reported earnings of $5.0 million for the nine months ending September 28, 2002 compared to a $12.8 million loss in 2001. Operating expenses decreased by $32.5 million in the nine-month period 2002 representing 15.5% as a percentage of sales compared to 18.4% in 2001. EBITDA increased $12.6 million from $16.7 million in the nine-month period 2001 to $29.3 million in the comparable period 2002. About American Tire Distributors American Tire Distributors, formerly Heafner Tire Group, Inc., 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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