CHARLOTTE, N.C. (March 29, 2013) — American Tire Distributors Holdings Corp. (ATD) reported a net loss of $14.4 million in fiscal 2012 despite 13.3-percent higher sales of $3.46 billion.
The loss contrasts with fiscal 2011 net earnings of $117,000 and can be attributed to higher operating, interest and other miscellaneous expenses, according to ATD's 10-K filing with the Securities and Exchange Commission. Operating income, for instance, fell 23.4 percent to $56.8 million.
Sales rose on a combination of higher volumes and higher pricing. ATD attributed $167.1 million of the year-over-year increase to higher net pricing and $40.4 million to increased unit volume.
Offsetting some of the increases was a drop in the value of sales of Chinese tires — impacted by destocking of lower price-point inventories tied to the expiration of elevated U.S. tariffs last Sepember — of $34.1 million, ATD said.
The combined results of new distribution centers opened since the beginning of 2011 as well as the acquisitions of TriCan Tire Distributors Inc., Consolidated Tire & Oil Inc. and North Central Tire Distributors. added $181.5 million of incremental sales during fiscal 2012, ATD said.
ATD recorded $5.2 million in acquisitions costs in 2012, primarily related to the acquisition of TriCan in November 2012 and CTO in May 2012.