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|UnitedAuto Reports Record Results; Revenue Increased 19.9% to $1.6 Billion; Net Income Increased 20.7% to $13.5 Million ($0.38 Per Share); Same Store Retail Revenue and Gross Profit Increased 5.4% and 8.7%, Respectively|
DETROIT, MI, October 24, 2001 - United Auto Group, Inc. (NYSE: UAG), a FORTUNE 500 automotive specialty retailer, announced record results for the third quarter 2001. Third quarter revenues increased 19.9% to $1.6 billion from $1.3 billion in 2000, and net income increased 20.7% to $13.5 million. Earnings per share were $0.38 compared to $0.40 in the third quarter 2000. Earnings per share reflect a 26.1% increase in weighted average shares outstanding from 28,080,000 to 35,418,000 in 2001.
During the quarter, the Company retailed 36,835 and 17,728 new and used retail units, representing increases of 15.1% and 11.9%, respectively, versus the third quarter 2000. Gross profit increased 21.1% to $221.1 million and, most importantly, revenues from high margin service and parts operations increased 22.4% to $159.4 million.
For the nine months ended September 30, 2001, revenue increased 26.3% to $4.6 billion versus $3.6 billion in 2000, and net income increased 39.9% to $33.5 million. Nine months 2000 net earnings included an extraordinary item resulting from the retirement of debt in the second quarter of 2000. Earnings per share were $1.00, up 22.0% over the $0.82 reported in 2000. Earnings per share reflect a 14.4% increase in weighted average shares outstanding from 29,325,000 to 33,550,000 in 2001.
Roger Penske, Chairman, said, "This was a record quarter for UnitedAuto. Despite the effects of the tragic events that occurred on September 11th, which initially decreased dealership traffic, we have seen our level of business increase. Our business remains strong, as evidenced by increases in same store revenue and retail units sales. I am particularly pleased to see the Company's third quarter 2001 same store results reflect: a 4.4% increase in new retail vehicle revenues; a 4.6% increase in used retail vehicle revenues; a 22.1% increase in finance and insurance revenues; and a 7.5% increase in service and parts revenues, over the comparable prior year period. In light of our continued strong operational performance and an increase in our working capital and acquisition credit facility to nearly $1.0 billion, we believe our business is positioned for future growth."
Sam DiFeo Jr., President, added, "I am delighted with our results for the third quarter. We are realizing the benefits from our favorable brand mix and our efforts to increase service and parts operations. Our ability to increase sales while maintaining customer satisfaction levels, coupled with our efforts to reduce inventory levels, will continue to help us achieve future success. "
Based upon the strong nine months results, the Company believes earnings per share will be at least $1.25 for the year ending December 31, 2001. For 2002, the Company is currently estimating that same store revenues will increase between 3% and 5%. In addition, the Company currently estimates that earnings per share will be at least $1.45, before the impact of the new accounting standard affecting the amortization of goodwill.
UnitedAuto, which pursues a strategy based on internal growth from its existing dealerships, as well as from strategic acquisitions, operates 126 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 third quarter 2001 on Wednesday, October 24, 2001 at 11 A.M. Eastern time. Advance registration is not required. Participants must call (888)-396-9923 (International, please call (712)-271-3627). Calls need to be made shortly before the call is to commence. Please provide the leader's name - Roger Penske - as well as the code UAG3Q. 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 UnitedAuto's 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 UnitedAuto's business, markets, conditions and other uncertainties which could effect UnitedAuto's future performance, which are contained in UnitedAuto's filings with the Securities and Exchange Commission and which are incorporated into this press release by reference.
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