Midas reports 4Q loss on lower parts, tire sales and restructuring charges

Midas reports 4Q loss on lower parts, tire sales

ITASCA, Ill. — Midas Inc. reported a fourth-quarter loss Thursday, the result of restructuring costs and falling sales of parts and tires at its auto repair shops, but says it has already begun to see improvement this year.

Midas lost $200,000, or 2 cents per share, compared with profit of $2.7 million, or 20 cents per share, a year earlier. Midas reported quarterly revenue of $45.7 million, down from $46.7 million a year ago.

Midas said its $2.9 million in restructuring costs included $1.5 million to redesign its North American stores and study its business in France and $800,000 to close four unprofitable stores.

Analysts polled by Thomson Reuters had forecast earnings of 8 cents per share on revenue of $45.8 million. They typically exclude one-time items like restructuring. Excluding those costs, Midas would have earned 10 cents per share.

Midas shares rose 22 cents, or 2 percent, to $10.02 in afternoon trading.

For the full year, Midas earned $2.6 million, or 19 cents per share, compared with $7.8 million, or 58 cents per share, in 2008. Its revenue was $182.8 million, down 2 percent.

Revenue from the company operates rose $4.3 million to $65.4 million for the year, due in part to an increase in the number of shops.

The company’s sales in shops open at least a year, including those run by franchisees, fell 1.5 percent. That comparison is considered a more reliable indicator of a retailer’s health because it excludes the effect of opening or closing stores during the year.

Midas also said its 2009 fiscal year was one week shorter than its fiscal 2008.

“Retail sales in 2009 for Midas were challenging,” Alan D. Feldman, Midas’ chairman and chief executive officer, said in a statement.

Feldman said U.S. sales already improved in 2010 despite stormy weather. The company plans to increase sales this year by adding more SpeeDee oil change centers and increasing employee training.