HUNTERSVILLE, N.C.-Heafner Tire Group Inc. fell $4.75 million into the red for the quarter ended Sept. 30 in part due to losses on the disposal of discontinued operations, according to the company's 10-Q form filed with the Securities and Exchange Commission.
Heafner's sales slid 10.5 percent, to $293.2 million, reflecting the sale earlier this year of the Winston Tire stores in California as well as weaker consumer demand.
For the nine month period, Heafner's net loss ballooned to $26 million, as higher interest payments-related to the 2000 acquisitions of T.O. Haas Tire Co. and American Tire Distributors-and one-time charges to cover consolidation measures took their toll. Sales for the nine months rose 6.5 percent to $862.8 million.
The document also shows the company fell into the red on an operating basis for the quarter, while operating income for the nine-month period slid 88.4 percent.
Separately, Heafner disclosed the sale price for the T.O. Haas retail activities in Nebraska and Kansas-sold to management in October-was about $5.4 million, although this figure is still subject to adjustment.
Heafner received $2.4 million at closing in October and will receive about $1 million in payments in January 2002 and 2003. T.O. Haas L.L.C. assumes $700,000 in liabilities, and part of the payment involves restructured payments to Haas executives related to Heafner's purchase of Haas.