PALM BEACH GARDENS, Fla. (July 27, 2004) — TBC Corp.'s net sales in the second quarter grew 38.8 percent to $456.5 million as the company's total unit tire sales increased 18.4 percent.
TBC said its unit tire sales compares to an increase of 6.9 percent for unit shipments by tire manufacturers, according to preliminary data. Same store sales in TBC's retail segment grew 1.1 percent in the quarter.
The Palm Beach Gardens-based company also reported net income rose 14.5 percent to $9.1 million from $8 million the previous year.
TBC also said its wholesale business was strong in the quarter, especially the private brands division, which benefited from new account activity, favorable pricing and solid cost controls. TBC said its introduction of private brand tires into the 225 NTB stores continued on plan.
For the first six months of the year, TBC reported sales of $890.3 million, up 52.1 percent from $585.4 million last year. Total unit tire sales increased 24.8 percent compared with the industry increase of 7.3 percent. Retail same store sales grew 3.5 percent, and net income rose 16.2 percent to $14.6 million.
As of June 30, TBC's retail network had a total 1,168 stores, including 598 company-owned outlets under its Tire Kingdom Inc. subsidiary and 570 franchised Big O Tires Inc. locations. That tally is an increase of 28.9 percent, or 262 stores, since June 30, 2003. Exclusive of any further acquisitions, TBC expects to add 25 to 30 retail locations the second half of this year.
For 2004, TBC expects to earn $1.78 to $1.84 per share.
“We achieved our financial goals for the period and are pleased with the company's performance, especially in light of a challenging retail environment,” said Larry Day, president and CEO. “While we expect these market conditions to continue in the near term, we are confident of our ability to realize our 2004 performance objectives through the contribution from our newly acquired retail locations, favorable product and service mix and rigorous cost controls.”