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.
Is the uncertainty swirling about the U.S. presidential election this fall having any effect on your business plans?
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