PALM BEACH GARDENS, Fla. (April 26, 2005) — TBC Corp. posted record sales and earnings in the first quarter, primarily on growth in mechanical services and stronger private brand tire sales.
TBC reported net sales of $466.4 million, up 7.5 percent from $433.8 million last year. Net income grew 12.9 percent to $6.21 million vs. $5.5 million last year. The company's retail segment posted net sales of $293.2 million, or 62.9 percent of the total, while the wholesale segment reported sales of $173.2 million.
“During the quarter, our retail operations benefited from growth in mechanical services and stronger private brand penetration,” said Larry Day, president and CEO. “However, retail performance was impacted by increased spending, primarily for additional advertising, which did not produce the level of sales we had anticipated in this seasonally slower time. We have since adjusted this spending accordingly.”
Also in the quarter, same store sales grew 2.7 percent—a slower rate than the 6.2-percent growth TBC reported in 2004's first quarter. Total unit tire shipments grew 3.1 percent in the quarter.
TBC also ended the quarter five stores ahead of its prior year level with 1,172 total outlets—609 in its company-owned Tire Kingdom Inc. subsidiary and 563 in its franchised Big O Tires Inc. operation. TBC said it plans to add 20 to 30 stores to the Tire Kingdom network and 15 to 20 to Big O this year.