CHARLOTTE, N.C. (March 31, 2003)—American Tire Distributors Inc. (ATD) returned to the black in fiscal 2002, reporting net income of $37.4 million on 4.3 percent lower sales of $1.06 billion. The company attributed the turnaround to reduced operating expenses and a one-time gain on the repurchase of company notes.
"In 2002, we worked hard to grow market share, despite an industry-wide sales decline and our decision to totally exit the retail business," said Richard P. "Dick" Johnson, president and CEO of ATD. "Through our diligent management of expenses and a tight focus on true customer service, we actually increased our market share and our profits. Our goal has been to make steady improvement, even in these tough times."
Due in large part to a 19.3-percent reduction in operating expenses, ATD reported pre-tax income for the year ended Dec. 29, 2002, of $12.9 million from continuing operations, excluding the extraordinary gain, compared with a pre-tax loss of $23.8 million in 2001.
Net income, including the extraordinary gain, increased $68.4 million to $37.4 million vs. a net loss of $30.9 million a year ago. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased $17.9 million, to $40.2 million from $22.4 million.
The 2002 net income includes an extraordinary gain in the amount of $30.1 million related to the company´s repurchase of its Series D Senior Notes, announced April 12, 2002, and included in the first-quarter results. The reported loss in 2001 includes a $12.6 million loss on the disposal of discontinued operations.