ITASCA, Ill. (Oct. 28, 2004) — The addition of Bridgestone/Firestone tires to Midas Inc.'s stores had a positive effect on retail sales, contributing to third quarter net income of $2.1 million, up from a loss of $11.8 million a year ago.
“Midas dealers have responded very positively to the new tire program, with approximately 900 shops now selling tires from Bridgestone/Firestone,” said Alan Feldman, Midas president and CEO. “Retail tire sales continue to accelerate and are currently running up about 30 percent over a year ago when we did not have a comprehensive system-wide tire program.”
Retail sales at Midas' 73 company-owned outlets fell to $9.2 million in the quarter from $9.6 million last year. The rest of Midas' roughly 1,900 stores in the U.S. and Canada are franchise outlets. Comparable sales in company-operated shops increased 1.8 percent in the quarter, while comparable store retail sales grew 1.6 percent in North America.
“These increases in comparable retail sales are the direct result of our continued focus on the brake business, as well as continuing to feature a brake offer in national television advertising throughout the summer months,” Mr. Feldman said.
Midas also said it plans to sell its exhaust business and exit exhaust manufacturing.
For the nine months, Midas reported net income of $2.1 million vs. a loss of $50.9 million last year. Retail sales in company-owned shops fell to $27.1 million from $32.5 million. Total sales and revenues for the company fell to $150.2 million from $229.4 million a year ago. Sales and revenue in the third quarter also fell to $51.3 million from $77 million a year ago.