HUNTERSVILLE, N.C. (May 14, 2010) — American Tire Distributors Holdings Inc. (ATD) cut its net loss for the quarter ended April 3 by 42 percent to $1.89 million, thanks to the positive impact of higher sales and lower interest expenses.
Sales increased 4 percent to $559.6 million on higher unit sales and increased selling prices, ATD said. Increased volumes contributed $19.4 million in new sales while higher net pricing added $16.4 million, ATD said in its first quarter 10-Q filing with the Securities and Exchange Commission.
Offsetting the gains in tire sales were lower sales of wheels and the absence of revenue from the now-divested Am-Pac retail stores the company had been operating, ATD said.
Operating income rose 24.3 percent to $9.84 million. Debt rose during the period 7.3 percent to $589.6 million primarily because of increased borrowings under ATD's revolving credit facility—driven by timing of vendor payments and incentive compensation payments, the firm said.