This report does not constitute a rating action. Overview Key strengths Key risks Dominant market share in the niche tire distribution to car dealerships channel; tightly integrated with original equipment manufacturers (OEMs) and dealers. Limited scale and scope of operations in the generally stable tire replacement industry. Consistent free cash flow generation and adequate liquidity. Financial ratios will likely remain elevated due to financial-sponsor ownership and debt-funded acquisition strategy. Operating performance has benefitted from steady volumes in its core tire distribution business as the company has grown share with franchise dealerships and expanded its service offerings. The company?s results were in line with our forecast, despite the weakening consumer environment, somewhat volatile tire demand, and higher restructuring and transaction-related costs.
