Midas Provides Outlook on Fiscal Third Quarter 2002 Results

Midas, Inc. has announced that it expects to post a modest loss for the third quarter ending Sept. 28, 2002, and that revenues are estimated to be approximately flat with last year’s third quarter.
In the third quarter of 2001, Midas reported revenues of $85.2 million U.S., operating income of $10.6 million U.S. and earnings per diluted share of $.35 U.S.
“Consistent with other retailers, we are seeing modest declines in retail sales, which negatively affect both our franchise royalties and replacement parts sales,” said William M. Guzik, Midas’ senior vice president and chief financial officer. “While we continue to achieve sales growth in our new Parts Warehouse, Inc. and company-operated shop businesses, that growth is offset by continuing declines in our traditional wholesale parts distribution business.
“More than half of the decrease in operating income for the quarter compared to last year is the result of unusually high medical claims, for which the company is largely self-insured, and estimated separation costs,” Guzik said. “The remainder is primarily due to the continuing decline in traditional wholesale sales in the United States.”
Midas will report its fiscal third quarter 2002 results in late October.
Midas is one of the world’s largest providers of automotive service, offering exhaust, brake, steering and suspension services, as well as batteries, climate control and maintenance services at 2,700 franchised, licensed and company-owned Midas shops in 19 countries, including nearly 2,000 in the United States and Canada.