MEMPHIS, Tenn. (Feb. 12, 2003) — TBC Corp. reported record sales and earnings for the fourth quarter and year ended Dec. 31.
Net sales rose 12.2 percent to $277.8 million for the fourth quarter and climbed to 10 percent to $1.1 billion for the year, TBC said. Net income in the quarter surged 42.1 percent to $8.1 million. For the year, net income was up 30 percent to $27.4 million.
Same-store sales for TBC's retail arms—Big O Tires Inc. and Tire Kingdom Inc.—increased 3.8 percent in the fourth quarter and 4.8 percent for the year, the company said.
Unit tire sales for the retail subsidiaries grew 5.9 percent in the fourth quarter, compared with the average 3-percent increase in the industry, TBC said. Unit tire sales for the year grew 5.4 percent though most of the industry saw a slight decline, according to the Memphis-based company.
“The fourth quarter capped off a record year for TBC highlighted by solid growth in both our retail and wholesale operations, improved asset management and strong cash flow generation,” said Larry Day, president and CEO of TBC. Exclusive of acquisitions, the company exceeded its new store growth objective by 33 percent, ending the year with 222 Tire Kingdom locations and 536 franchised Big O outlets, he added.
For 2003, the company expects growth of about 8 percent along with as many as 60 new retail stores excluding possible acquisitions. TBC expects net sales of about $270 million for the first quarter of 2003 with full-year earnings of $1.38 to $1.40 per share.