CHARLOTTE, N.C. (March 14, 2014) — American Tire Distributors Holdings Inc. recorded improved operating income for the year ended Dec. 28 on 11.1-percent higher sales and cut its net loss in half to $6.33 million.
The improved earnings picture resulted primarily from sales increasing at a rate greather than expenses, ATD’s financial statements show.
Sales increased to $3.84 billion, driven primarily by the combined results of new distribution centers and acquisitions, ATD said. Offsetting these gains were lower net tire pricing of $92 million ($68.8 million related to passenger and light truck tires and $15.5 million related to medium truck tires) and a slight shift in product mix in lower price-point offerings, especially entry-level imported products.
Operating income was up 21.7 percent to $69.2 million, as rising revenue stayed slightly ahead of rising costs.
Among recent developments that will affect ATD’s finances going forward are:
- The acquisitions of Terry’s Tire Town Holdings Inc., Hercules Tire Holdings Inc., Kipling Tire Co. Ltd. and Wholesale Tire Distributors Inc., with combined annual sales in excess of $1.1 billion.
- The full-year impact of distribution centers opened in 2013 in Chattanooga, Tenn.; Manchester, N.H.; Missouri City, Texas; Albany, N.Y. and West Palm Beach, Fla., and the contribution of any centers that open in 2014, ATD said.
How does your shop support the community during the holiday season?
|We collect canned goods||
12% (5 votes)
|We collect items for Toys for Tots||
30% (13 votes)
|We provide free automotive service for those in need||
5% (2 votes)
|We collect money for local charity||
9% (4 votes)
|We don’t participate in any organized efforts||
44% (19 votes)
|Total votes: 43|