PALM BEACH GARDENS, Fla. (Oct. 25, 2004) — TBC Corp. reported a net sales jump of 31.5 percent as net income also grew 9 percent despite the quarter's rash of hurricanes that contributed to a decline in same-store sales.
The Palm Beach Gardens-based marketer reported net sales of $476.5 million in the third quarter, up from $362.4 million last year. TBC said it continued to increase market share with a 9.9-percent jump in unit tire sales compared with the 3.6-percent decline in unit shipments by tire manufacturers. Same store sales in TBC's retail segment fell 1.7 percent, primarily from the effects of Hurricanes Charley, Frances, Ivan and Jeanne.
Net income reached $10.9 million vs. $10 million last year. TBC posted a negative impact of 12 cents per diluted share from the hurricanes.
TBC's wholesale segment reported improved profitability despite a decline in unit sales, the company said.
“In a retail environment that remains challenging and despite unprecedented hurricane activity, we delivered strong top- and bottom-line growth over last year,” said Larry Day, TBC president and CEO. “We see opportunities at our retail locations for upside in both pricing and product/service mix. Additionally, we expect a solid fourth quarter contribution from NTB (National Tire & Battery), which continues to execute on plan.”
Mr. Day acknowledged, however, that tire retail demand is “challenging” because of the short-term effects of high gasoline prices.
For the nine months, TBC posted net sales of $1.37 billion, up 44.2 percent from $947.8 million the previous year. Total unit tire sales increased 19.1 percent, and same store sales grew 1.7 percent. Net income hit $25.6 million, up 13 percent from $22.6 million last year.
In its retail segment, TBC operates Tire Kingdom Inc., Merchant's and NTB stores plus franchise Big O Tires Inc. outlets.