Brad Ragan Inc. announces third quarter results.

CHARLOTTE, N.C.--(BUSINESS WIRE)--Oct. 26, 1995--Brad Ragan, Inc. (ASE: BRD) today announced net income of $801,000, or $.37 per share for the quarter ended Sept. 30, 1995 on revenues of $67.0 million.

Compared to 1994, third quarter earnings were lower by $707,000, or $.28 per share while revenues remained unchanged. The Company attributed the lower earnings to a higher effective income tax rate, higher interest rates, and lower consumer finance income. The prior year income tax provision had been partially offset by a non-recurring adjustment of deferred income tax benefits. For the quarter, same store sales increased .4% in the Company's Commercial segment and .2% in the retail segment.

For the nine-month period, revenues were $189.8 million, or $4.1 million greater than the same prior year period. Net income of $2.2 million, or $1 per share was $1.7 million, or $.69 per share lower than the same prior year nine-month period which included the previously mentioned non-recurring income tax benefit. Pre-tax earnings for the nine months were $3.9 million, or $.8 million lower than the previous year due to higher interest expense and lower consumer finance income.

"Including the cost and temporary disruption associated with a Commercial retread business consolidation, finalizing the closure of a former operation, facility expansions, relocations and upgrades at several locations during the quarter and current nine-month period, the operational fundamentals were solid," said W.P. Brophey, president and chief executive officer. "During the quarter, sales improved with a positive spread between gross margin and expense to sales ratio," Brophey added.

Brad Ragan Inc. is the largest United States producer of retreaded tires for off-highway vehicles. BRI distributes new and retreaded off-the-road and truck tires through a network of 50 commercial outlets in 19 states. The company also operates a chain of 121 retail stores in the Southeast, featuring products and services for the auto and home. -0-

                            BRAD RAGAN INC.
                          Comparative Results
                  (000's omitted except per share data)

                               Three Months Ended   Six Months Ended
                                   Sept. 30,           Sept. 30,
                               1995        1994      1995      1994

Revenues                    $67,003      $67,045  $189,798   $185,724
Income before taxes           1,477        1,914     3,851      4,669
Provision for income taxes      676          406     1,652        759
Net income                  $   801      $ 1,508  $  2,199   $  3,910
Net income per common share $   .37      $   .65  $   1.00    $  1.69
Weighted average number of
common shares outstanding   2,190,619  2,402,495  2,190,619 2,402,495

CONTACT: Brad Ragan Inc., Charlotte

R.J. Carr, 704/521-2100

KEYWORDS: NORTH CAROLINA

INDUSTRY KEYWORD: AUTOMOTIVE EARNINGS REPEATS: New York 212-575-8822 or 800-221-2462; Boston 617-236-4266 or

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