Press Release

Printer Friendly Version View printer-friendly version
<< Back
UnitedAuto Reports Record Income For Fourth Quarter And Full-Year 2000; Fourth Quarter Net Income Increased 4.5% to $6.1 Million, or $0.21 Per Share; Net Income for 2000 Totals $30.0 Million, or $1.02 Per Share; Excluding Extraordinary Items, Full-Year In
Download PDF Download PDF

Net Income for 2000 Totals $30.0 Million, or $1.02 Per Share

Excluding Extraordinary Items, Full-Year Income Increased 27.1% to $34.0 Million, or $1.16 Per Share

DETROIT, MI, February 5, 2001 - United Auto Group, Inc. (NYSE: UAG), a leading automotive retailer, announced results for the fourth quarter and year ended December 31, 2000. Fourth quarter revenues increased 25.2% to $1.2 billion versus $1.0 billion in 1999. Net income in the quarter amounted to $6.1 million, or $0.21 per share, which represents a 4.5% increase over the $5.9 million, or $0.19 per share, reported in the fourth quarter 1999. Fourth quarter income increased 12.4% compared to the comparable 1999 quarter before extraordinary items. Total new and used retail unit sales increased 21.5% and 13.5%, respectively, versus the fourth quarter of 1999.

Roger Penske, Chairman, said, "This was another outstanding quarter for UnitedAuto. In an increasingly challenging operating environment, the strength of our business is evidenced by our same store performance. Excluding the effects of severe weather, which impacted our South Central Region in December, same store retail revenues and gross profit increased 3.6% and 4.9%, respectively, versus the fourth quarter 1999. Our outlook remains positive, and we are comfortable the Company will meet or exceed the First Call Analysts' consensus estimate of $1.07 per share for 2001."

Sam DiFeo Jr., President, added, "The impact of our continued focus on operations is evidenced by the excellent performance of our dealerships during the fourth quarter, especially the continued improvement of same store dealership operating results in all aspects of our business versus the corresponding period in 1999, with a solid 3.6% increase in same store retail revenues."

For the year ended December 31, 2000, revenues increased 21.4% to $4.9 billion versus $4.0 billion in 1999. Net income was $30.0 million, or $1.02 per share, which represents a 9.3% increase over 1999. Net income includes the effect of a $4.0 million extraordinary charge, including the write-off of related deferred financing costs, resulting from the repurchase of $147.0 million of 11% subordinated notes at 101% of face value, during the second quarter of 2000. Income before extraordinary item was $34.0 million, or $1.16 per share, which represents a 27.1% increase over income before extraordinary item in 1999. Total new and used retail unit sales increased 20.8% and 12.0%, respectively, in the year ended December 31, 2000 versus 1999.

UnitedAuto, which pursues a strategy based on internal growth from its existing dealerships, as well as from strategic acquisitions, operates 125 franchises in 17 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 the fourth quarter 2000 on Monday, February 5, 2001 at 10 A.M. Eastern time. Advance registration is not required. Participants must call (888) 942-8132 (International, please call (712) 257-3320). 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 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 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.




                           UNITED AUTO GROUP, INC.

              Consolidated Statements of Operations (Unaudited)

                (Amounts In Thousands, Except Per Share Data)

                                    Fourth Quarter

                                     2000      1999

 New Vehicle Sales (a)             $762,484  $599,316

 Used Vehicle Sales (b)             292,736   247,831

 Finance and Insurance               48,044    40,073

 Service and Parts                  134,636   101,601

 Total Revenues                   1,237,900   988,821

 Cost of Sales                    1,061,449   852,458

 Gross Profit (c)                   176,451   136,363

 Selling, General &                 143,495   112,464
 Administrative Expenses

 Operating Income                    32,956    23,899

 Floor Plan Interest Expense       (12,723)   (7,953)

 Other Interest Expense             (9,803)   (5,834)

 Income Before Minority              10,430    10,112
 Interests, Income

 Tax Provision and Extraordinary
 Item

 Minority Interests                    (37)     (180)

 Income Tax Provision               (4,276)   (4,491)

 Income before Extraordinary          6,117     5,441
 Item

 Extraordinary Item, Net of              --       412
 Taxes (d)

 Net Income                          $6,117    $5,853

 Diluted Earnings Per Share           $0.21     $0.18
 Before Extraordinary Item

 Diluted Earnings Per Share           $0.21     $0.19

 Diluted Weighted Average Shares     29,243    30,729
 Outstanding

 EBITDA (e)                         $27,060   $20,879

                          Same Store Operating Data

 New Vehicle Sales (f)             $566,604  $562,965

 Used Vehicle Sales (g)             229,980   232,444

 Finance and Insurance               31,671    30,778

 Service and Parts                  101,580    94,245

 Total revenue                     $929,835  $920,432



  a. Includes fleet sales of $24.8 million and $33.5 million in 2000 and
     1999, respectively.
  b. Includes wholesale sales of $79.4 million and $65.2 million in 2000 and
     1999, respectively.
  c. Gross profit as a percentage of revenues for new vehicle retail, used
     vehicle retail, finance and insurance and service and parts revenues
     was 9.1%, 10.4%, 56.3%, and 44.6%, respectively, compared with 8.9%,
     10.5%, 56.0% and 43.6% in the comparable prior year period.
  d. Results from the repurchase of $37.0 million of 11% subordinated notes,
     including the write-off of related deferred financing costs.
  e. EBITDA is defined as income before minority interests, income tax
     provision, other interest expense, depreciation and amortization.
     Depreciation and amortization amounted to $6.8 million and $5.0 million
     in 2000 and 1999, respectively.
  f. Includes fleet sales of $23.3 million and $30.2 million in 2000 and
     1999, respectively.
  g. Includes wholesale sales of $59.8 million and $59.3 million in 2000 and
     1999, respectively.



                           UNITED AUTO GROUP, INC.

              Consolidated Statements of Operations (Unaudited)

                (Amounts In Thousands, Except Per Share Data)

                                        Year

                                  2000        1999

 New Vehicle Sales (a)         $2,971,468  $2,417,906

 Used Vehicle Sales (b)         1,227,597   1,040,026

 Finance and Insurance            193,121     165,751

 Service and Parts                491,803     398,834

 Total Revenues                 4,883,989   4,022,517

 Cost of Sales                  4,206,032   3,473,080

 Gross Profit (c)                 677,957     549,437

 Selling, General &               539,704     442,525
 Administrative Expenses

 Operating Income                 138,253     106,912

 Floor Plan Interest Expense     (44,406)    (28,676)

 Other Interest Expense          (32,777)    (29,344)

 Income Before Minority            61,070      48,892
 Interests, Income

 Tax Provision and
 Extraordinary Item

 Minority Interests                 (512)       (722)

 Income Tax Provision            (26,558)    (21,414)

 Income before Extraordinary       34,000      26,756
 Item

 Extraordinary Item, Net of       (3,969)         732
 Taxes (d)

 Net Income                       $30,031     $27,488

 Diluted Earnings Per Share         $1.16       $1.01
 Before Extraordinary Item

 Diluted Earnings Per Share         $1.02       $1.04

 Diluted Weighted Average          29,415      26,526
 Shares Outstanding

 EBITDA (e)                      $118,021     $97,321

                          Same Store Operating Data

 New Vehicle Sales (f)          $2,235,314 $2,138,608

 Used Vehicle Sales (g)            952,449    925,381

 Finance and Insurance             128,906    120,137

 Service and Parts                 369,830    342,746

 Total revenue                  $3,686,499 $3,526,872



  a. Includes fleet sales of $130.7 million and $170.1 million in 2000 and
     1999, respectively.
  b. Includes wholesale sales of $315.6 million and $270.4 million in 2000
     and 1999, respectively.
  c. Gross profit as a percentage of revenues for new vehicle retail, used
     vehicle retail, finance and insurance and service and parts revenues
     was 8.8%, 10.7%, 58.7%, and 43.8%, respectively, compared with 8.6%,
     11.1%, 58.8% and 43.4% in comparable prior year period.
  d. The extraordinary item in 2000 results from the repurchase of $147.0
     million of 11% subordinated notes at 101% of face value, including the
     write-off of related deferred financing costs. The extraordinary item
     in 1999 results from the repurchase of $49.0 million of 11%
     subordinated notes, including the write-off of related deferred
     financing costs.
  e. EBITDA is defined as income before minority interests, income tax
     provision, other interest expense, depreciation and amortization.
     Depreciation and amortization amounted to $24.2 million and $19.1
     million in 2000 and 1999, respectively.
  f. Includes fleet sales of $124.5 million and $152.7 million in 2000 and
     1999, respectively.
  g. Includes wholesale sales of $225.5 million and $233.7 million in 2000
     and 1999, respectively.



                           UNITED AUTO GROUP, INC.

                    Consolidated Condensed Balance Sheets

                           (Amounts In Thousands)



                                  12/31/00    12/31/99

 Assets                        (Unaudited)

 Cash and Cash Equivalents        $7,413       $19,847

 Accounts Receivable, Net        190,792       140,473

 Inventories                     737,942       508,289

 Other Current Assets             15,469        10,723

 Total Current Assets            951,616       679,332

 Property and Equipment, Net     107,085        68,232

 Intangible Assets , Net         657,710       494,957

 Other Assets                     39,484        36,816

 Total Assets                 $1,755,895    $1,279,337



 Liabilities and
 Stockholders' Equity

 Floor Plan Notes Payable       $689,687      $478,460

 Accounts Payable and Accrued    120,619        93,441
 Expenses

 Current Portion Long - Term      41,456        10,389
 Debt

 Total Current Liabilities       851,762       582,290

 Long - Term Debt (a)            377,721       218,535

 Other Liabilities                64,742        47,647

 Total Liabilities             1,294,225       848,472

 Stockholders' Equity            461,670       430,865

 Total Liabilities and        $1,755,895    $1,279,337
 Stockholders' Equity


(a) Availability under the Company's credit facility amounts to $316.0
million as of December 31, 2000.