American Tire Distributors Reports $6.1 Million Sales Increase; Operating Expenses Continue Sharp Decline.Business Editors/Automotive Writers CHARLOTTE, N.C.--(BUSINESS WIRE)--May 14, 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 March 29, 2003. Sales for the first quarter improved 2.4% or $6.1 million, amid an industry-wide slowdown For articles with similar titles, see Slow Down (disambiguation). 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 $257.7 million versus $251.6 million in the first quarter 2002. 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 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 decreased $0.2 million to $7.2 million in the first quarter of 2003 compared to $7.4 million in the first quarter of 2002. "As the industry in total reports declining sales, our team has made a tremendous investment in outpacing the industry's growth and increasing our market share," said Richard P. "Dick" Johnson, Chairman and Chief Executive Officer of American Tire Distributors. "By continuing to initiate activities that provide improved service to our customers, we are beginning to reap the benefits of increased sales." Due in large part to a 4.7% 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. and a 40.7% reduction in interest expense, American Tire Distributors reported net income of $1.0 million for the quarter compared to net income of $29.2 million in first quarter 2002. Net income from first quarter 2002 included the $30.0 million net 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 the Company's Series D Senior Notes transacted March 27, 2002. The decrease in interest expense is primarily attributable to reduced interest cost on the outstanding Series D Senior Notes. "I am excited about new opportunities that open up for us as sales get stronger and our operations become even more efficient," said Johnson. "With a firm financial foundation in place, we are continuing to execute our 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. growth strategy." 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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