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|Unitedauto Reports Record Fourth Quarter And Full Year Results|
Penske Increases Investment
Revenues Increased 30.4% To $1.6 Billion In The Fourth Quarter And 27.4% To $6.2 Billion For The Full Year
Net Income Increased 84.4% To $11.3 Million ($0.32 Per Share) In The Fourth Quarter And 49.0% To $44.7 Million ($1.31 Per Share) For The Full Year
Same Store Retail Revenues Increased
20.0% In The Fourth Quarter And 9.1% For The Full Year
DETROIT, MI, February 5, 2002 , United Auto Group, Inc. (NYSE: UAG), a FORTUNE 500 automotive specialty retailer, announced record results for fourth quarter and full year 2001. Fourth quarter revenues increased 30.4% to $1.6 billion versus $1.2 billion in 2000, and net income increased 84.4% to $11.3 million. Earnings per share were $0.32, an increase of 52.4% over the $0.21 reported in fourth quarter 2000. Earnings per share reflect a 21.9% increase in weighted average shares outstanding.
For the full year, revenues increased 27.4% to $6.2 billion versus $4.9 billion in 2000 and net income increased 49.0% to $44.7 million. Earnings per share were $1.31, an increase of 28.4% over the $1.02 reported in 2000. Earnings per share reflect a 16.3% increase in weighted average shares outstanding. Full year 2000 net income includes an extraordinary loss of $4.0 million resulting from the retirement of debt in second quarter 2000.
The Company also announced that on February 1, 2002, Penske Capital Partners exercised warrants to purchase 5,021,693 shares of the Companyís common stock. The warrants were granted to Penske Capital Partners in 1999 as partial consideration for their original investment in the Company. The $62.5 million received by the Company is expected to fund future acquisitions.
Roger Penske, Chairman, said, ìThis was another record quarter for UnitedAuto and is the eleventh consecutive quarter of same store unit and revenue growth since the Penske investment. Despite the effects of the slowdown in the U.S. economy, our business has continued to expand. Zero percent financing offered by the U.S. manufacturers contributed to a 17.2% increase in same store new retail unit sales from our domestic brands. We also achieved 26.5% same store new retail unit growth in our foreign portfolio. I am proud of the Companyís achievements in 2001 and believe our focus on customer satisfaction will continue to drive expansion of our business in 2002 and beyond. As we move into 2002, our expectation is to earn at least $1.73 per share for the year, after the estimated impact of the new accounting standard affecting the amortization of goodwill and based upon our estimate of 39.0 million weighted average shares outstanding. On a quarterly basis, the $1.73 is expected to be earned as follows: Q1 - $0.29; Q2 - $0.53; Q3 - $0.53; Q4 - $0.38.î
Sam DiFeo Jr., President, added, ìI am particularly pleased with our results for the fourth quarter. While the catalyst for our outstanding performance was new car sales, same store used retail unit sales increased 20.7%. In addition, finance and insurance revenue increased 28.6% on a same store basis. These excellent results from the retail sale of automobiles were supported by continued steady growth in our service and parts operations. Same store service and parts revenues increased 6.0% during the quarter, and reflect the results of our investments in capacity in this important aspect of our business.î
UnitedAuto, which pursues a strategy based on internal growth from its existing dealerships, as well as from strategic acquisitions, operates 127 franchises in 19 states, Puerto Rico and Brazil. UnitedAuto dealerships sell new and used vehicles and market a complete line of aftermarket automotive products and services.
UnitedAuto will host a conference call discussing financial results relating to fourth quarter and full year 2001 on Tuesday, February 5, 2002 at 2 P.M. Eastern time. Advance registration is not required. Participants must call (800) 369-1911 (International, please call (712) 271-3820). Calls need to be made shortly before the call is to commence. Please provide the leaderís name - Roger Penske - as well as the code UAG4Q. The conference call cannot be accessed without this information. The call will also be simultaneously broadcast live over the Internet through the UnitedAuto website at www.unitedauto.com.
Statements in this press release may involve forward-looking statements, including forward-looking statements regarding UnitedAutoís future reportable sales and earnings growth potential. Actual results may vary materially because of external factors such as interest rate fluctuations, changes in consumer spending and other factors over which management has no control. These forward-looking statements should be evaluated together with additional information about UnitedAutoís business, markets, conditions and other uncertainties, which could effect UnitedAutoís future performance, which are contained in UnitedAutoís filings with the Securities and Exchange Commission and which are incorporated into this press release by reference.
AUTO GROUP, INC.
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Accounting Standards No. 133 - Accounting For Derivative Instruments and Hedging Activities