Auto repair chain Midas says 1st-quarter earnings fall 30 percent on legal costs

Midas 1Q earnings decline 30 percent

ITASCA, Ill. — Automotive repair chain Midas Inc. said Thursday that its first-quarter net income fell 30 percent as the cost of preparing for a legal case outweighed a gain in sales.

Midas reported net income of $700,000, or 5 cents per share, down from $1 million, or 7 cents per share, in the year-ago quarter.

Midas said that the cost of preparing for a July arbitration with its master licensee in Europe had a 5-cent per share impact on the first-quarter results.

Revenue rose 7.6 percent to $47.7 million from $44.3 million. The company said the sales gain was driven by factors such as an increase in the number of customers at its U.S. shops.

Analysts surveyed by Thomson Reuters expected first-quarter income of 8 cents per share on revenue of $47.8 million.

Midas shares fell 17 cents to $10.53 in midday trading.