ITASCA, Ill. (Aug. 5, 2004) — Midas Inc. reported net income of $2.6 million in the second quarter, its first quarterly net income since the third quarter of 2002.
Last year, the automotive service chain reported a second quarter loss of $32.7 million.
“The significant progress Midas has made over the past 18 months and these positive results demonstrate that our plan to transform Midas into a profitable franchise retail business is working,” said Alan Feldman, president and CEO.
Midas also said more than 750 of its nearly 1,900 shops are now selling tires from Bridgestone/Firestone. Midas officially launched its tire program with the tire maker during the quarter. Only 73 of Midas' shops are company-owned; the rest are franchises.
For the quarter, Midas reported sales of $52 million, down from $77.9 million last year. Midas said the decline is the result of the company's exiting its parts distribution business. The company had a comparable shop sales increase of 1.4 percent.
For the first half of the year, Midas posted sales of $98.9 million, down from $152.4 million a year ago. Earnings were at break-even vs. a net loss of $39.1 million last year.
“We are encouraged by the trends we are experiencing in operating results,” Mr. Feldman said. “Midas shops in North America are seeing positive momentum in retail sales and profitability as we continue to grow our brake business and enhance our service offering to include tires, maintenance and fleet.”