Midas Sells Pipe Bender Manufacturing Operation
Midas has sold Huth, Inc., the company’s pipe bender operation located in Hartford, Wis., to Hartford Benders, Inc., a newly formed company owned by current Huth plant manager Joseph Becker and Tom Hechimovich, owner of Hechimovich Machining, Inc., of Hartford. The company produces Huth Benders, used in muffler installation shops to bend exhaust pipes to meet specific exhaust system applications. Midas acquired Huth in 1966.
Midas Reports Positive Full Year Earnings
Midas this week reported positive full-year net earnings for the first time since 2001. For the fiscal year ending Jan. 1, Midas earned $4.1 million, or 26 cents per diluted share, including the effects of $5.9 million in special charges. Net income for the fourth quarter was $2 million – or 12 cents per diluted share, after special charges of $1.2 million. Net income for both the fourth quarter and full year benefited from the reversal of a $1.8 million tax reserve that was no longer needed due to the favorable resolution of a 1999 foreign tax matter. Excluding the effects of both the special charges and the tax credit, net income was 36 cents per diluted share for the year and 6 cents per diluted share for the fourth quarter.
Fine-tuning the Midas Touch
Alan Feldman, president and CEO of Midas Inc., may not share the ability of his company’s fabled literary counterpart, King Midas, to turn whatever he touches to gold, but much of what Feldman has touched in his 21-month tenure at the automotive aftermarket giant has had a golden effect on the company.
Midas Reports Third Quarter Results; Announces Plans to Exit Exhaust Manufacturing Business
Midas has reported net income of $2.1 million, or 13 cents per diluted share, for the third quarter, which ended on Oct. 2. This the company’s second consecutive quarter of positive net results.
Midas and Big O Tires Launch Comdata’s Fleet Team System
Midas International and Big O Tires have signed on as the first new users of Comdata’s Fleet Team online maintenance tracking system for customers. The Fleet Team system captures key maintenance information as services and products are purchased. The data-rich logging system is being made available at no additional cost to Midas and Big O customer fleet managers.
Midas Returns To Profitability
Midas has reported net income of $2.6 million — or 16 cents per diluted share — for the second quarter, which ended on July 3. This marks company’s first quarterly net income since the third quarter of 2002. Last year, Midas reported a second quarter loss of $32.7 million — or $2.10 per diluted share — after business transformation charges of $50.8 million — or $1.99 per share — for establishment of an accrual for warranty obligations, asset write-downs and employee severance costs related to the company’s shutdown of its wholesale distribution system.
Midas’ European Operations Gets New Owners
Midas has confirmed the pending sale of its licensed operations in Europe and Latin America. Currently owned by Magneti Marelli, a member of the Fiat Group, Marelli will sell the operations to France’s Norauto Group. Midas sold its interests in Europe and Brazil to Marelli in October 1998, when the companies entered into a long-term license agreement for which Midas received $100 million in cash and on-going royalties throughout the term of the license agreement.
Midas Joins NASCAR Performance Network
Midas has joined the NASCAR Performance Network — an online marketing and locator service allowing NASCAR fans to quickly find automotive service professionals in their communities. The NASCAR Performance Network is located on NASCAR.com, which averages more than 4.5 million unique users each month, according to NASCAR. Through this new partnership, Midas can now tap into that audience by being featured on the network. Information about Midas’ 1,900 service locations throughout the U.S. and Canada will be featured on the site.
Midas Completes Debt Refinancing
Midas has entered into a three-year, $115 million credit facility to refinance its existing debt. The new facility consists of a $55 million revolving loan and a $60 million term loan from a group of lenders led by Bank One, NA.
Campaign to Bring Back the “Midas Touch”
Midas wants to return to its core value of trust with the resurrection of a marketing campaign first used in Midas advertising in the 1980s. The company’s new national advertising agency DDB Chicago is collaborating with Ogilvy & Mather Toronto on the “Trust the Midas Touch” campaign. The campaign will include commercials that take place in a Midas shop and show a humorous dialog between a customer of Midas and a Midas service employee, who is hooked up to a polygraph machine. The commercials are the first in a long-term campaign to grow Midas’ category-leading shares in brakes and exhaust and to support the expansion of its services, including oil changes and other routine maintenance services.