Midas Will Take $1.9 Million Fourth Quarter Charge

Midas Inc. on Monday said it will take a $1.9 million charge in the fourth quarter for closing unprofitable stores. In December Midas closed six of its Florida stores, in the greater Tampa, Jacksonville and Stuart areas. High gas prices in the summer also hurt Midas' results, the company said. It added that it expects same-store sales to fall 1.7 percent in the fourth quarter and 1.5 percent for the year. Same-store sales, or sales in stores open at least one year, are a key measure of retail industry performance.

From AFX News Limited

ITASCA, IL — Midas Inc. on Monday said it will take a $1.9 million charge in the fourth quarter for closing unprofitable stores.

In December Midas closed six of its Florida stores, in the greater Tampa, Jacksonville and Stuart areas.

High gas prices in the summer also hurt Midas’ results, the company said. It added that it expects same-store sales to fall 1.7 percent in the fourth quarter and 1.5 percent for the year. Same-store sales, or sales in stores open at least one year, are a key measure of retail industry performance.

Midas affirmed 2006 earnings guidance of 64 cents to 68 cents per share. That estimated range includes 4 cents per share of exhaust-related losses and an 8-cent per share stock option expense. Analysts expect full year income of 72 cents per share, according to a poll by Thomson Financial. Thomson estimates typically do not include one-time charges.

Midas continues to operate 65 company owned stores, including 33 in Florida.