CHARLOTTE, N.C. (March 20, 2015) — American Tire Distributors Holdings Inc. (ATD) fell $94.6 million into the red last year, despite 31-percent higher sales.
In addition, ATD fell $407,000 into the red on an operating basis, which the company attributed to triple-digit increases in management fees and transaction expenses.
Sales for the year leapt to $5.03 billion on the strength of eight acquisitions during the year that added $993.7 million in incremental sales to ATD's revenue stream. ATD's fiscal 2014 year ended Jan. 3, 2015, and encompassed 53 weeks, the company said, which contributed to the sales increase.
The net loss was 15-fold greater than the fiscal 2013 loss, the firm's figures show, and was despite a $53.7 million income tax provision benefit.
During fiscal 2014, ATD acquired the wholesale distribution business of four western Canadian dealerships — Kirk's Tire Ltd., Regional Tire Distributors Inc. of Calgary and Edmonton and Trail Tire Distributors Ltd. — along with Hercules Tire & Rubber Co. and Terry's Tire Town, for a combined $847.7 million.
ATD noted that Canada accounted for $643.5 million of its sales last year, or 12.8 percent of total revenue, up from $335.6 million, or 8.7 percent, in 2013.
The distributor also noted that Ares Management L.P.'s Private Equity Group closed its previously announced transaction to buy a share of ATD. Ares Entities and TPG Funds now each own 48.4 percent of ATD's common stock, with the remaining 1.9 percent held by ATD directors and executives.
In 2015 ATD distributed more than 40 million tires, which equates to an estimated consumer tire replacement market share of rougly 14 percent in the U.S. and 25 percent in Canada.
ATD said its 10 largest customers account for 10.3 percent of its sales.
Passenger and light truck tires sales represented 82.6 percent of sales last year, ATD said, with other tires accounting for 15.1 percent and tire supplies, tools and custom wheels and accessories the remaining 2.3 percnet.
Charlotte-based ATD said it expects to continue to pursue a “selective acquisition strategy” to increase market share within its existing distribution footprint and to expand into new markets.
The company operates more than 140 distribution centers in the U.S. and Canda, delivering product to more than 75,000 customers.