HUNTERSVILLE, N.C. (May 19, 2014) — American Tire Distributors Holdings Inc. fell deeper into the red on both an operating and net basis in the quarter ended April 5 despite 28-percent higher sales.
ATD cited higher operating costs, including a four-fold increase in “transaction expenses,” as reasons for its operating loss of $24.4 million, which together with higher interest expenses helped double the net loss to $34 million.
Sales for quarter jumped to $1.08 billion, driven primarily by the first-time contributions on Hercules Tire & Rubber Co. and Terry’s Tire Town, both acquired during the first quarter, as well as from three acquisitions in Canada during 2013—Wholesale Tire Distributors, Tire Distributors Inc. and Regional Tire Distributors.
These entities contributed $167.5 million in incremental sales during the period, ATD said, while five extra business days in the 2014 quarter vs. the 2013 period added $47 million in additional sales. Organic unit sales growth yielded $98.9 million in additional revenue.
Lower net pricing offset these gains by $30.2 million, ATD said.
Do so-called “Religious Freedom” laws in place in some states impact how companies do business, and do you support them?
|I support them and don’t think they have any effect on how I do business||
|I don’t support them; they have a negative effect on businesses||
|I think more research should be done about these laws’ impact before they’re enacted||
|They’re horrible, an infringement on the rights of certain groups or individuals and shouldn’t be the law anywhere||
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