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UnitedAuto Reports Results For Third Quarter 2000; Net Income Increased 20.0% to $11.2 Million, or $0.40 Per Diluted Share, Versus $9.3 Million, or $0.32 Per Diluted Share, for the Comparable Period in 1999; Same Store Retail Revenues and Gross Profit Inc
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Same Store Retail Revenues and Gross Profit Increased 6.2% and 6.3%, Respectively, Reflecting Increases in Vehicle Sales, F&I and Service and Parts

Detroit, MI, October 19, 2000 - United Auto Group, Inc. (NYSE: UAG), a leading publicly-traded automotive retailer, today announced third quarter 2000 earnings. Net income in the quarter amounted to $11.2 million, or $0.40 per diluted share, which represents a 20.0% increase over the $9.3 million, or $0.32 per diluted share, reported in the third quarter 1999.

Third quarter revenues increased 22.6% to $1.3 billion versus $1.1 billion in the comparable prior year period. Same store revenues were $1.0 billion in the third quarter 2000, an increase of 4.1% over the previous year. Same store retail revenues, excluding fleet and wholesale sales, increased 6.2% to $935.6 million as a result of 5.5%, 7.4%, 7.8% and 7.3% increases in same store new vehicle retail, used vehicle retail, finance and insurance and service and parts revenues, respectively.

Total new and used retail unit sales increased 22.8% and 12.3%, respectively, versus the third quarter of 1999. The Company retailed 32,000 new and 15,845 used vehicles during the third quarter, versus 26,060 new and 14,106 used vehicles in the comparable 1999 period. Same store new and used retail unit sales amounted to 24,640 and 13,107, respectively, which represent 4.0% and 0.4% increases over the comparable prior year period.

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 an overall 24.7% increase in gross profit over the comparable period in 1999, which includes a 6.3% increase in same store retail gross profits. Our outlook remains positive and we are comfortable with the First Call Analysts' consensus estimate of $1.20 per diluted share for 2000."

Sam DiFeo Jr., President, added, "The impact of our continued focus on operations is evidenced by the excellent performance of our dealerships, especially the continued improvement of same store dealership operating results in all aspects of our business versus the corresponding period in 1999."

For the nine months ended September 30, 2000, net income was $23.9 million, or $0.82 per diluted share, which represents a 10.5% increase over the comparable prior year period. Net income in 2000 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 $27.9 million, or $0.95 per diluted share, which represents a 30.8% increase over the comparable prior year period. Earnings per share reflects a 16.3% increase in diluted weighted average shares outstanding. The increase is due primarily to the issuance of $83.0 million in convertible preferred stock in 1999, offset in part by the purchase of 2,990,000 common shares under the Company's share repurchase program in 2000.

For the nine months ended September 30, 2000, revenues increased 20.2% to $3.6 billion versus $3.0 billion in the comparable 1999 period. Same store revenues were $2.8 billion in the nine months ended September 30, 2000, an increase of 5.6% over the previous year. Same store retail revenues increased 7.5% to $2.6 billion as a result of 7.7%, 6.9%, 8.7% and 7.5% increases in same store new vehicle retail, used vehicle retail, finance and insurance and service and parts revenues, respectively.

Total new and used retail unit sales increased 20.6% and 11.5%, respectively, in the nine months ended September 30, 2000 versus the comparable period in 1999. The Company retailed 84,793 new and 44,816 used vehicles during the nine months ended September 30, 2000, versus 70,318 new and 40,192 used vehicles in the comparable 1999 period. Same store new and used retail unit sales amounted to 65,833 and 36,862, respectively, which represent 5.7% and 2.0% increases over the comparable prior year period.

UnitedAuto, which pursues a strategy based on internal growth from its existing dealerships, as well as from strategic acquisitions, operates 124 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 third quarter 2000 on Thursday, October 19, 2000 at 10 A.M. Eastern time, which will be simultaneously broadcast live over the Internet through the UnitedAuto website at www.unitedauto.com. Advance registration is not required. Participants must call (888)-455-0047 (International, please call (630)-395-0030). 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.

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)

                                    Third Quarter

                                    2000       1999

 New Vehicle Sales (a)            $818,112   $660,562

 Used Vehicle Sales (b)            329,484    274,708

 Finance and Insurance              53,373     45,679

 Service and Parts                 130,204    104,417

 Total Revenues                  1,331,173  1,085,366

 Cost of Sales                   1,148,560    938,882

 Gross Profit (c)                  182,613    146,484

 Selling, General &                142,453    116,421
 Administrative Expenses

 Operating Income                   40,160     30,063

 Floor Plan Interest Expense      (11,226)    (6,999)

 Other Interest Expense            (8,681)    (7,255)

 Income Before Minority             20,253     15,809
 Interests and

 Income Tax Provision

 Minority Interests                  (162)      (181)

 Income Tax Provision              (8,912)    (6,631)

 Income before Extraordinary        11,179      8,997
 Item

 Extraordinary Item, Net of             --        320
 Taxes (d)

 Net Income                        $11,179     $9,317

 Diluted Earnings Per Share          $0.40      $0.31
 Before Extraordinary Item

 Diluted Earnings Per Share          $0.40      $0.32

 Diluted Weighted Average           28,080     29,048
 Shares Outstanding

 EBITDA (e)                        $46,426    $35,009



  a. Includes fleet sales of $30.9 million and $40.7 million in 2000 and
     1999, respectively.
  b. Includes wholesale sales of $82.2 million and $72.2 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 8.4%, 10.8%, 60.6%, and 43.6%, respectively, compared with 8.4%,
     11.1%, 59.6% and 43.2% in the comparable prior year period.
  d. Results from the repurchase of $12.0 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, floor plan interest expense, other interest expense,
     depreciation and amortization. Depreciation and amortization amounted
     to $6.3 million and $4.9 million in 2000 and 1999, respectively.



                           UNITED AUTO GROUP, INC.

              Consolidated Statements of Operations (Unaudited)

                (Amounts In Thousands, Except Per Share Data)

                                    Nine Months

                                  2000        1999

 New Vehicle Sales (a)         $2,208,984  $1,818,590

 Used Vehicle Sales (b)           934,861     792,195

 Finance and Insurance            145,077     125,678

 Service and Parts                357,167     297,233

 Total Revenues                 3,646,089   3,033,696

 Cost of Sales                  3,144,583   2,620,622

 Gross Profit (c)                 501,506     413,074

 Selling, General &               396,209     330,061
 Administrative Expenses

 Operating Income                 105,297      83,013

 Floor Plan Interest Expense     (31,683)    (20,723)

 Other Interest Expense          (22,974)    (23,510)

 Income Before Minority            50,640      38,780
 Interests and

 Income Tax Provision

 Minority Interests                 (475)       (542)

 Income Tax Provision            (22,282)    (16,923)

 Income before Extraordinary       27,883      21,315
 Item

 Extraordinary Item, Net of       (3,969)         320
 Taxes (d)

 Net Income                       $23,914     $21,635

 Diluted Earnings Per Share         $0.95       $0.84
 Before Extraordinary Item

 Diluted Earnings Per Share         $0.82       $0.86

 Diluted Weighted Average          29,325      25,207
 Shares Outstanding

 EBITDA (e)                      $122,644     $97,193



  a. Includes fleet sales of $105.9 million and $136.6 million in 2000 and
     1999, respectively.
  b. Includes wholesale sales of $236.2 million and $205.2 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 8.6%, 10.8%, 59.4%, and 43.5%, respectively, compared with 8.5%,
     11.2%, 59.7% and 43.3% 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 $12.0 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, floor plan interest expense, other interest expense,
     depreciation and amortization. Depreciation and amortization amounted
     to $17.3 million and $14.2 million in 2000 and 1999, respectively.



                           UNITED AUTO GROUP, INC.

                    Consolidated Condensed Balance Sheets

                           (Amounts In Thousands)



                                   9/30/00    12/31/99

 Assets                        (Unaudited)

 Cash and cash equivalents        $13,976      $19,847

 Accounts Receivable, Net         189,422      140,473

 Inventories                      592,737      508,289

 Other Current Assets              11,740       10,723

 Total Current Assets             807,875      679,332

 Property and equipment, Net       93,366       68,232

 Intangible Assets, Net           586,569      494,957

 Other Assets                      35,818       36,816

 Total Assets                  $1,523,628   $1,279,337



 Liabilities and Stockholders'
 Equity

 Floor Plan Notes Payable        $532,125     $478,460

 Accounts Payable and Accrued     118,995       93,441
 Expenses

 Current Portion Long - Term       13,464       10,389
 Debt

 Total Current Liabilities        664,584      582,290

 Long - Term Debt                 390,904      218,535

 Other Liabilities                 45,687       47,647

 Total Liabilities              1,101,175      848,472

 Stockholders' Equity             422,453      430,865

 Total Liabilities and         $1,523,628   $1,279,337
 Stockholders' Equity