CHARLOTTE, N.C.American Tire Distributors Holdings Inc. (ATD) returned to the black in the third quarter, ended Sept. 29, reporting operating income of $1.71 million and net income of $1.22 million on a 7.9-percent increase in sales to $987.9 million.
The earnings contrast with operating and net losses a year ago of $548,000 and $10.6 million, respectively.
The sales increase was driven primarily by the combined results of new distribution centers, ATD said, as well as the company's acquisition of TriCan Tire Distributors, Regional Tire Distributors Inc. and Tire Distribution Inc., which contributed $108.8 million in incremental sales. This was partially offset by lower net tire pricing of $27.9 million, primarily driven by manufacturer price repositioning and an overall softer sales unit environment, ATD said.
The wholesaler attributed its improved earnings to lower costs and reduced income tax provisions.
For the nine-month period, ATD suffered deeper operating and net income losses of $29.8 million and $20.9 million, respectively, while sales increased 7.7 percent to $2.78 billion.
The operating loss was 62.7 percent more than in 2012 and the net loss was 66.6 percent worse.
ATD attributed higher costsboth of goods sold and selling as well as general and administrativefor the deeper losses.