From Staff & Wire Reports
CHARLOTTE, NC — American Tire Distributors Holdings Inc. (ATD) has announced operating results for the first quarter, which ended Apr. 2.
Consolidated net sales increased 17.6 percent to $354.3 million, versus $301.4 million in the first quarter of fiscal 2004, and gross profit increased 10.9 percent, ATD reported.
A first-quarter pre-tax loss of $20.9 million “includes the impact of $28.2 million of transaction expenses relating to the recent purchase of the company by Investcorp,” according to ATD.
ATD said that its increase in net sales is due “primarily to the acquisition of Target Tire and Big State in the third quarter of 2004” as well as “an increase in sales of certain lower-margin private label brands due to better supply and new markets.”
“Our first quarter 2005 results reflect the integration of the Big State and Target Tire acquisitions and our continuing strategic focus on being the nation’s leading tire distributor,” said Richard “Dick” Johnson, chairman and CEO. “Our goal is to have the right tire, at the right price, at the right time for our customers.”
Johnson added that current revenues are strong and that the wheel business has shown “signs of increased activity.”
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