PALM BEACH GARDENS, Fla. (Aug. 16, 2005) — A strong wholesale performance helped TBC Corp. increase its net income by 33.6 percent to $12.1 million.
TBC reported net sales in the second quarter of $482.4 million, up 5.7 percent from $456.5 million. Same store sales in the company's retail segment grew 4.1 percent, but total unit tire sales were flat in the quarter.
“Our wholesale business remained strong during the period and price increases instituted at the beginning of July are holding,” said Larry Day, president and CEO. “…After a slow start to the quarter, our retail operations turned in a much improved performance in June.”
For the first half of the year, TBC posted net sales of $948.7 million, up 6.6 percent from $890.3 million last year. Total unit tire sales rose 1.2 percent in the half, and retail same-store sales increased 3.4 percent. Net income grew 25.7 percent to $18.1 million.
At the end of the second quarter, TBC had 1,175 total stores in its network, including 613 company-owned stores and 562 franchised Big O Tires Inc. outlets. The company also operates retail stores under the Tire Kingdom, Merchant's Tire & Auto Centers and National Tire & Battery (NTB) names.
For the rest of the year, TBC expects earnings at the low end of its range of $2.08 to $2.15 per share. Earnings in the third quarter are forecast at 65 to 68 cents per share.