CHARLOTTE, N.C. (Aug. 12, 2003) — American Tire Distributors Inc. (ATD) reported an increase of 131.6 percent to $4.4 million in net income for the second quarter—up from $1.9 million last year—despite the lagging economy, ATD said.
An ATD spokesman said the net income boost “has come from continued expense management at all levels of our business and the growth in sales we've experienced in the first half of the year.”
The Charlotte-based distributor said consolidated net sales for the quarter increased 2.9 percent to $285.7 million vs. $277.6 million last year.
“For the second consecutive quarter, we have been able to outpace the industry's average growth rate despite continued weakness in the replacement market,” said Richard “Dick” Johnson, chairman and CEO of ATD. “Our plan is to focus on providing excellent service and exceptional value for the products we sell, and our customers are proving this model successful as they reward us with more of their business.”
For the first half of the year, consolidated net sales grew to $543.3 million from $529.1 million in the same period last year. Net income for the half was $5.4 million, compared to $31.1 million in 2002. The 2002 figure included a $30 million net gain on repurchase of the company's series D senior notes, ATD said.
ATD said selling, general and administrative expenses fell $1.4 million in the six months of 2003.
ATD operates 62 distribution centers servicing 35 states.