Huntersville, NC-based American Tire Distributors (ATD) reported a $5.84-million net loss for the second quarter of 2013 — down from $5.13 million in net income a year ago, despite a 9.2-percent year-over-year increase in net sales.
ATD’s income tax benefit for the 2013 second quarter came in at $1.70 million, based on a pre-tax loss of $7.60 million, while the income tax benefit from the second quarter of 2012 was $10.30 million, which was based on a pre-tax loss of $5.20 million.
Cost of goods sold for the quarter was up 9.7 percent. Selling, general and administrative expenses rose 7 percent, while interest expense increased 2.4 percent.
Net sales rose $80.71 million (or 9.2 percent) to $955.08 million in the three months ended June 29, 2013. The increase was primarily driven by the combined results of new distribution centers, as well as the acquisitions of Consolidated Tire & Oil (CTO), TriCan Tire Distributors and Regional Tire Distributors (RTD). These growth initiatives added $113.40 million in incremental sales in the second quarter of 2013. This increase was partially offset by $26.70 million in lower net tire pricing, primarily driven by manufacturer price repositioning and an overall softer sales unit environment.
ATD is billed as the leading replacement tire distributor in North America. It operates a network of 133 distribution centers in the United States and Canada, and boasts roughly 72,000 customers (62,000 in the United States and 10,000 in Canada).
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