TBC Corp. warned shareholders that its third quarter earnings will show a negative impact from Hurricanes Charley and Frances after they closed company-owned stores and damaged some.
Palm Beach Gardens-based TBC expects the two hurricanes to have a combined negative impact of 4 to 5 cents per diluted share. As a result, the private brand marketer revised downward its third quarter earnings range of 59 to 62 cents to 54 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 affected by the storms are open and returning to normal sales levels, he said.
TBC did not expect an impact from Hurricane Ivan, which made landfall around the Alabama Gulf Coast area, where TBC has very few stores.
The Federal Emergency Management Agency said on Sept. 19 that more than $104 million in state and federal assistance had been approved to replace essential personal property needs for individuals in Florida. The agency also said the Small Business Administration had approved more than $60 million in low-interest disaster loans to homeowners, renters and businesses following the three hurricanes. By Sept. 19, the agency said 459,481 individuals and businesses registered for aid in the state.