MEMPHIS, Tenn.(April 25, 2001)–The acquisition of the Tire Kingdom Inc. retail chain in Florida and the sale and leaseback of a distribution center pushed TBC Corp.'s first quarter net income to $4.3 million, a 10.2-percent increase from the same period in 2000.
Net sales jumped 28 percent to $227.2 million, which the Memphis-based company credited to its Tire Kingdom subsidiary.
"We believe the strong relative performance of TBC in the first quarter further validates the rationale for the Tire Kingdom acquisition," said President and CEO Larry Day. "Our retail operations are contributing positively to our income and are serving as a growth vehicle for TBC." He added that plans are progressing well for expanding Tire Kingdom, supported by the company's core wholesale tire operations.
Mr. Day said TBC is optimistic of surpassing the $1 billion mark in sales for 2001. The distributor and private brand tire marketer, he said, recently opened a distribution center in Baltimore for its Carroll's Tire unit and opened eight franchised stores for TBC's Big O Tires Inc. subsidiary.
"We have the benefit of a financial position that provides us with considerable flexibility to execute our expansion plans and are positive about TBC's growth prospects," Mr. Day added.