Net income for the second quarter increased 33.2% to a record $13.3 million from $10.0 million in the prior year period. Diluted earnings per share for the quarter increased 28.6% to $.63, as compared to diluted earnings per share of $.49 in the second quarter of fiscal 2010, and exceeded the Company's estimated range of $.60 to $.62. Net income for the second quarter reflects an effective tax rate of 38.2% compared with 38.1% for the prior year period.
The Company closed two locations during the quarter, ending the second quarter with 783 stores.
First Six Month Results
For the six-month period, net sales increased 21.0% to a record $320.3 million from $264.7 million in the same period of the prior year. Net income for the first six months of fiscal 2011 increased 36.7% to a record $26.5 million, or $1.26 per diluted share, compared with $19.4 million, or $.95 per diluted share in the comparable period of fiscal 2010.Robert G. Gross, Chairman and Chief Executive Officer stated, "Our continued strong top and bottom-line performance during the first six months was driven by effective in-store sales execution, ongoing outperformance of our recent acquisitions, and our ability to leverage our cost structure on increased sales. Our strong value proposition and reputation as a trusted service provider continue to resonate well with customers, and helped us once again achieve strong same store traffic increases of 5%. Additionally, the positive trends we continue to experience across our major service categories reflect our ability to capitalize on favorable economic and consumer trends. Specifically, we achieved an approximate 6% increase in exhaust comparable store sales, marking the fifth straight quarter of increases in this category, while comparable store sales in our scheduled maintenance category increased nearly 8% on top of a 17% increase last year. Strong results in both of these categories reinforces to us that consumers are continuing to invest in maintaining older vehicles and that we are gaining market share from dealer displacement. Moreover, we believe that our sweet spot has expanded to include vehicles ranging from four to 12 years old versus what had previously been a range of six to ten years old."