PALM BEACH GARDENS, Fla. (Sept. 15, 2004) — As Hurricane Ivan approaches the U.S. mainland, TBC Corp. today warned that its third quarter earnings will show a negative impact from hurricanes Charley and Frances.
Palm Beach Gardens-based TBC expects the two earlier hurricanes to have a combined negative impact of 4 cents to 5 cents per diluted share. As a result, the private brand marketer revised downward its third quarter earnings range of 59 cents to 62 cents to 54 cents to 57 cents per diluted share. TBC's retail subsidiary Tire Kingdom Inc. is based in Juno Beach, Fla.
“We are fortunate that none of our employees were injured and only five of our 160 Florida stores sustained significant physical damage,” said Larry Day, president and CEO. “However, sales were impacted considerably by store closings and power outages during the periods surrounding the storms. These lower sales and additional expenses to repair store damage resulted in the reduced earnings outlook for the third quarter.”
Mr. Day added in a statement that all of TBC's retail stores in Florida—which represent about one-third of the firm's company-owned retail outlets—were affected by Hurricane Frances. Hurricane Charley had less of an impact. Stores impacted by the storms are open and returning to normal sales levels, he said.
Hurricane Ivan, in the meantime, appears on track toward the New Orleans area, where TBC has very few stores.