ITASCA, Ill. (May 6, 2004) — A $4.7 million charge related to an early debt retirement contributed to a net loss of $2.6 million for Midas Inc.'s first quarter.
Midas said it would have produced net income of 2 cents per share without the charge. During the same period last year Midas reported a loss of $6.4 million.
“These results indicate that our plan to transform Midas by exiting parts distribution to focus on the profitable franchising business is working,” said Alan Feldman, president and CEO. “Midas is on track to continue producing positive operating income.”
Sales and revenues in the first quarter were down 37 percent to $46.9 million from $74.5 million last year. Midas attributed this loss to its withdrawal from the parts distribution in the second half of last year.
Retail sales at Midas' company-owned shops were down to $8.6 million from $11.7 million in 2003. In 2004's quarter, the automotive service chain operated 73 such stores, compared with 106 in the first quarter last year.
In North America, comparable shop sales increased 1.2 percent.
“Midas is a much improved company versus a year ago, with our successful transition out of the parts distribution business, our debt down more than $50 million from the first quarter of 2003, new financing in place with significantly lower interest rates and early signs of profitable growth in retail sales at Midas shops in North America,” Mr. Feldman said.