CHARLOTTE, N.C. (May 13, 2013) — American Tire Distributors Holdings Inc. reported operating and net losses for the quarter ended March 31, despite 5.8-percent higher sales.
ATD's first quarter operating loss of $5.71 million contrasts with operating earnings of $4.02 in the year-ago quarter.
ATD attributed the earnings decline to higher selling, general and adminstrative expenses, primarily related to incremental costs associated with the recent acquisitions of Consolidated Tire & Oil and TriCan Tire Distributors.
The company's net loss more than doubled to $16.3 million. Sales increased to $840 million, with revenue from recent acquisitions contributing $65 million in incremental sales. This addition was offset partially by lower net tire pricing of $6.9 million, primarily driven by manufacturer price repositioning.
ATD derived 83.7 percent of sales in the quarter from passenger car and light truck tires, 13.1 percent from other tires, 2.3 percent from custom wheels and the remaining 0.9 percent from tire supplies, tools and other products.
In addition to the Consolidated Tire and TriCan acquisitions, ATD recently completed its $62.5 million purchase of Regional Tire Distributors in Burlington, Ontario.
During the quarter the company opened wholesale distribution centers in Manchester, N.H., and Chatanooga, Tenn.—its 106th and 107th warehouses throughout the U.S.
ATD also recently debuted a new look and corporate message.