PALM BEACH GARDENS, Fla. (Feb. 23, 2005) — TBC Corp. reported record results for the fourth quarter and full-year of 2004 mainly based on the full quarter performance of its National Tire & Battery (NTB) stores and the return of business lost during the hurricane season.
Net income for the fourth quarter jumped 26 percent to $12.1 million despite an after-tax charge of $0.9 million on the final disposition of discontinued inventories acquired with NTB. Net sales in the fourth quarter surged 31.6 percent to $487.8 million. Total tire unit sales rose 21.1 percent compared with a preliminary report of a 3.3-percent increase in unit shipments by tire manufacturers in the fourth quarter.
“Fourth quarter results demonstrate positive momentum in both our retail and wholesale units,” said TBC President and CEO Larry Day. “Within our retail segment, sales were driven by an increase in tire demand and continued expansion in mechanical services….
“Within our wholesale business, we experienced revenue growth in the fourth quarter as our private brands division performed well, and we continued to focus on higher margin niche products and delivering superior fill rates to our customers.”
The after-tax charge along with the negative impact of four hurricanes is reflected in TBC's 2004 net income of $37.6 million—a 16.8-percent increase from 2003.
Year-end net sales soared 40.7 percent to $1.85 billion. Net income in 2004 rose to $37.6 million from $32.2 million the previous year.
Tire unit sales rose 19.6 percent during the year. Same store sales for TBC's retail segment increased 2.0 percent in 2004.
In addition to NTB, the company also operates retail chains Merchant's Tire & Auto Centers, Tire Kingdom and Big O Tires Inc.