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|UnitedAuto Reports Record Second Quarter Results; Revenue Increased 34.1% to $1.6 Billion; Net Income Increased 88.9% to $13.4 Million ($0.40 Per Share) from $7.1 Million ($0.24 Per Share); Same Store Retail Revenue and Gross Profit Increased 9.0% and 7.6|
DETROIT, MI, July 24, 2001 - United Auto Group, Inc. (NYSE: UAG), a FORTUNE 500 automotive specialty retailer, announced record results for second quarter 2001. Second quarter revenues increased 34.1% to $1.6 billion from $1.2 billion in 2000. Net income in the quarter increased 88.9% to $13.4 million and earnings per share increased 66.7% to $0.40. Earnings per share reflects a 15.3% increase in weighted average shares outstanding from 29,400,000 to 33,889,000 in the second quarter 2001. Net income for second quarter 2000 included an after-tax extraordinary charge of $4.0 million ($0.14 per share) resulting from a repurchase of the Company's 11% subordinated debt.
The Company's operations remain strong. During the quarter the Company retailed 36,410 and 17,904 new and used retail units, representing increases of 33.2% and 21.2%, respectively, versus second quarter 2000. Gross profit increased 31.3% to $219.0 million and, most importantly, revenues from high margin service and parts operations increased 33.6% to $156 million.
For the six months ended June 30, 2001, revenue increased 30.0% to $3.0 billion versus $2.3 billion in 2000. Net income for the six months ended June 30, 2001 increased 56.9% to $20.0 million compared to $12.7 million, including the extraordinary item, in the comparable prior year period. Corresponding earnings per share were $0.61, which represents a 41.9% increase over the $0.43 reported in 2000. Earnings per share reflects a 9.4% increase in weighted average shares outstanding from 29,808,000 to 32,620,000 in 2001. Based upon the strong six months results, the Company currently expects earnings per share to be between $1.21 and $1.25 for the year ending December 31, 2001.
Roger Penske, Chairman, said, "This was another outstanding quarter for UnitedAuto, with a record quarter to quarter increase in net income of nearly 89%. Our business shows signs of strengthening fundamentals, including strong contributions from recent acquisitions and impressive same store unit and revenue growth. I am particularly pleased to see the Company's second quarter 2001 same store results reflect: a 10.6% increase in new retail vehicle revenues; a 4.3% increase in used retail vehicle revenues; an 18.0% increase in finance and insurance revenues; and a 6.7% increase in service and parts revenues, over the comparable prior year period. As we move into the last half of 2001, the mix of our brand offerings provides a solid foundation for increased growth and profitability."
Sam DiFeo Jr., President, added, "We are realizing the benefit of our strong organizational structure and our efforts to enhance inventory management and increase our profitable service and parts operations. These improvements contributed to a 7.6% increase in same store retail gross profit over the corresponding period in 2000. We are also benefiting from the strength of recent acquisitions, as we fully integrate their operations into UnitedAuto. "
UnitedAuto, which pursues a strategy based on internal growth from its existing dealerships, as well as from strategic acquisitions, operates 123 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 second quarter 2001 on Tuesday, July 24, 2001 at 2 P.M. Eastern time. Advance registration is not required. Participants must call (877)-601-4491 (International, please call (630)-395-0447). 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 UAG2Q. 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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