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.
Titan International and the United Steelworkers union have petitioned the U.S. International Trade Commission and U.S. Department of Commerce seeking relief from OTR tire imports from China, India and Sri Lanka. What’s your opinion?
|I wholeheartedly support their action – something needs to be done.||
|I think it’s a bad idea that could inevitably tie the hands of domestic tire makers.||
|I oppose any duties against tire importers—they only raise costs for distributors and make it harder to obtain inventory.||
|I’m kind of on the fence and not sure what’s right, but need more information before deciding.||
|I don’t really care whether or not relief is granted.||
|Total votes: 78|