TBC Corporation Comments on Financial Impact of Florida Hurricanes
September 15 2004 - 9:01AM
PR Newswire (US)
TBC Corporation Comments on Financial Impact of Florida Hurricanes
~ Anticipates Adverse Impact of $0.04 to $0.05 per Diluted Share ~
PALM BEACH GARDENS, Fla., Sept. 15 /PRNewswire-FirstCall/ -- TBC
Corporation (NASDAQ:TBCC), one of the nation's leading marketers of
automotive replacement tires, today estimated that the combined
negative impact of Hurricanes Charley and Frances will be
approximately $0.04 to $0.05 per diluted share for the third
quarter of 2004. As a result, the Company has revised its previous
third quarter earnings range of $0.59 to $0.62 to $0.54 to $0.57
per diluted share. Larry Day, TBC President and Chief Executive
Officer, commented, "We are fortunate that none of our employees
were injured and only five of our 160 Florida stores sustained
significant physical damage. However, sales were impacted
considerably by store closings and power outages during the periods
surrounding the storms. These lower sales and additional expenses
to repair store damage resulted in the reduced earnings outlook for
the third quarter." Mr. Day continued, "All of our Florida stores,
which represent approximately one-third of our total
company-operated store base, were affected by Hurricane Frances
with Hurricane Charley having less of an impact. The impacted
stores are now open and sales are returning to normal levels.
Finally, based upon the projected path of Hurricane Ivan, we do not
currently expect any material impact from this approaching storm as
we have very few stores in markets in its anticipated track." About
TBC: TBC Corporation is one of the nation's largest marketers of
automotive replacement tires through a multi-channel strategy. The
Company's retail operations include company-operated retail centers
under the "Tire Kingdom", "Merchant's Tire & Auto Centers" and
"National Tire & Battery" brands and franchised retail tire
stores under the "Big O Tires" brand. TBC markets on a wholesale
basis to regional tire chains and distributors serving independent
tire dealers throughout the United States and in Canada and Mexico.
The Company's proprietary brands of tires have a longstanding
reputation for quality, safety and value. TBC Corporation Safe
Harbor Statement This document contains "forward-looking
statements," as that term is defined under the Private Securities
Litigation Reform Act of 1995, regarding expectations for future
financial performance, which involve uncertainty and risk. It is
possible that the Company's future financial performance may differ
from expectations due to a variety of factors including, but not
limited to: changes in economic and business conditions in the
world; increased competitive activity; consolidation within and
among competitors, suppliers and customers; unexpected changes in
the replacement tire market; the Company's inability to attract as
many new franchisees or open as many distribution outlets as stated
in its goals; changes in the Company's ability to identify and
acquire additional companies in the replacement tire industry and
successfully integrate acquisitions and achieve anticipated
synergies or savings; fluctuations in tire prices charged by
manufacturers, including fluctuations due to changes in raw
material and energy prices, changes in interest and foreign
exchange rates; the cyclical nature of the automotive industry and
the loss of a major customer or program. It is not possible to
foresee or identify all such factors. Any forward-looking
statements in this release are based on certain assumptions and
analyses made by the Company in light of its experience and
perception of historical trends, current conditions, expected
future developments and other factors it believes are appropriate
in the circumstances. Prospective investors are cautioned that any
such statements are not a guarantee of future performance and
actual results or developments may differ materially from those
projected. The Company makes no commitment to update any
forward-looking statement included herein, or to disclose any
facts, events or circumstances that may affect the accuracy of any
forward-looking statement. Additional information on factors that
could potentially affect the Company or its financial results may
be found in the Company's filings with the Securities and Exchange
Commission. DATASOURCE: TBC Corporation CONTACT: Thomas W. Garvey,
Executive V.P. & Chief Financial Officer of TBC Corporation,
+1-561-227-0955; or Investors - Betsy Brod, or Jonathan Schaffer
both of Brod & Schaffer, LLC, +1-212-750-5800, for TBC
Corporation Web site: http://www.tbccorp.com/
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