Midas Third Quarter Profit Up

Auto service chain Midas Inc. said Thursday its third-quarter profit more than doubled as the elimination of restructuring charges more than offset a decline in sales. Midas earned $3.3 million, or 21 cents per share, up from $1.5 million, or 9 cents per share, for the same quarter in 2005. Revenue fell 7 percent to $45.3 million from $48.7 million in the year-ago period.

From AFX News Limited

ITASCA, IL — Auto service chain Midas Inc. said Thursday its third-quarter profit more than doubled as the elimination of restructuring charges more than offset a decline in sales.

Midas earned $3.3 million, or 21 cents per share, up from $1.5 million, or 9 cents per share, for the same quarter in 2005. Revenue fell 7 percent to $45.3 million from $48.7 million in the year-ago period.

The 2005 quarter included restructuring charges of $1.5 million related to the company’s exit from the exhaust manufacturing and distribution business.

The 2006 period included pretax business transformation charges of $400,000 and stock-option expenses of $500,000.

Excluding those charges, Midas earned $3.8 million, or 25 cents per share, compared with $2.9 million, or 18 cents per share, in the year-ago period.

Analysts polled by Thomson Financial expected a profit of 23 cents per share.

Despite a U.S. increase of about 5.5 percent in September, the company said same-store sales — or sales at stores open at least a year — for the quarter were down 1.8 percent as the result of high gasoline prices in July and August.

Midas said it still expects to post 2006 operating income of $29 to $30 million, excluding restructuring, stock-option and other one-time charges, as well as gains on asset sales. The company also reiterated its full-year revenue guidance of $177 million.