Brad Ragan Inc. reports 1995 fourth quarter and year end earnings.

CHARLOTTE, N.C.--(BUSINESS WIRE)--Feb. 14, 1996--Brad Ragan, Inc. (ASE: BRD) today reported 1995 revenues of $251.1 million with net income of $1,356,000, or $.62 per share.

The Company stated that revenues for the year ended Dec. 31, 1995 increased $2.1 million, or .9%. Year 1995 same-store sales in the Company's commercial division exceeded prior year by 1.1% while retail division same store sales were up .1%. Pretax income for the year was $2,410,000 compared to $4,511,000 in 1994.

The Company attributed the lower earnings to lower income from consumer installment credit sales, constrained product availability, lower than expected December sales, higher interest expense and costs associated with a commercial retread business consolidation.

Fourth quarter revenues of $61.3 million were $1.9 million, or 3.1% lower than the same prior year period. Fourth quarter same-store commercial and retail sales were respectively 1.8% and 3.3% lower. A fourth quarter pretax loss of $1,441,000 compared to a pretax loss of $158,000 in the same prior year period. The Company noted that the loss was due to the previously mentioned lower income from consumer installment credit sales and lower than expected December sales volume.

"While we recognize the immediate challenge of satisfying an increasingly demanding customer in an intensely competitive market, our focus on longer range opportunities will not be diverted," commented W.P. Brophey, president and chief executive officer.

"Although 1995 operating income was lower, a positive operating cash flow enabled numerous facility and equipment upgrades with no increase in debt," Brophey added.

The Company reported net income for the year of $1,356,000, or $.62 per share. This compares with net income of $3,836,000, or $1.75 per share in 1994. Net income in 1994 included a non-recurring tax benefit of $1,192,000. Net loss for the fourth quarter was $843,000 compared to a $74,000 loss in the prior year.

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 48 commercial outlets in 20 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    12 Months Ended
                                   Dec. 31,              Dec. 31,
                               1995         1994      1995       1994

Revenues                    $61,344      $63,283  $251,142   $249,007
Income (loss) before taxes   (1,441)        (158)    2,410      4,511
Provision for income taxes     (598)         (84)    1,054        675
Net income (loss)              (843)         (74)    1,356      3,836
Net income (loss) per
 common share               $  (.38)     $  (.03) $    .62    $  1.75
Weighted average number of
 common shares outstanding  2,190,619  2,190,619  2,190,619 2,190,619

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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