ITASCA, Ill. (March 20, 2003) — As it continues to restructure, automotive service provider Midas Inc. reported a net loss of $5 million for the fourth quarter and earnings of $4.5 million for the year, excluding special charges.
Those charges, which total $62.3 million for 2002, are related to restructuring costs, including $26.3 million for the write-down of inventories associated with the sale and disposition of the company's Parts Warehouse Inc. quick-delivery distribution operation. After a fourth-quarter 2002 decision to exit the PWI business, Midas said it has closed 17 PWI sites in 2003 and is in the process of selling another 19 locations. After the sales, Midas will operate 41 PWI sites, down from 77. Midas expects to be out of the quick-delivery business by year's end, by which time it would have sold or closed the remaining 41 PWI locations.
Another $3.3 million of the special charges are from the company's plans to close three of its remaining 12 wholesale distribution centers in 2003.
Including the charges, Midas reported a net loss of $40.4 million for the quarter and a net loss of $33.6 million for the year.
Sales in the fourth quarter were down to $74.8 million from $79.4 million in 2001, primarily because of lower wholesale product sales, Midas reported. For the year, sales were up slightly to $333.0 million from $331.5 million.
In 2002, Midas also began a program to begin selling tires at its more than 2,000 franchise outlets nationwide. TBC Corp. agreed to supply the tires.