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UnitedAuto Reports Results for Fourth Quarter and Full-Year 1999; Net Income for the Fourth Quarter Totaled $5.9 Million, or $0.19 Per Share, Versus a Loss of $18.3 Million, or $0.81 Per Share in the Comparable Prior Year Period; Net Income for 1999 Total
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Net Income for the Fourth Quarter Totaled $5.9 Million, or $0.19 Per Share, Versus a Loss of $18.3 Million, or $0.81 Per Share in the Comparable Prior Year Period; Net Income for 1999 Totals $27.5 Million, or $1.04 Per Share on a Diluted Basis

Same-Store Dealership Retail Revenues Increased 11.5% and 12.9% in the Quarter and Year, Respectively, Versus the Comparable Period in 1998

NEW YORK, NY, February 8, 2000 - UnitedAuto Group, Inc. (NYSE: UAG), a leading publicly traded automotive retailer, today announced results for the fourth quarter and year ended December 31, 1999.

Fourth quarter revenues increased 18.0% to $988.8 million versus $838.0 million in the comparable prior year period. Net income in the fourth quarter was $5.9 million, or $0.19 per share on a diluted basis, as compared to a net loss of $18.3 million, or $0.81 per share in 1998.

For the year ended December 31, 1999, revenues were $4.0 billion as compared to $3.3 billion in the comparable prior year period. Net income for the year was $27.5 million, or earnings per share of $1.04 on a diluted basis, as compared to a loss of $0.8 million or $0.04 per share in 1998.

Earnings per share reflects the dilutive effect of 35.6% and 26.7% increases in weighted average shares outstanding to 30,729,000 and 26,526,000 in the fourth quarter and fiscal year, respectively. The increases resulted primarily from the issuance of $83.0 million in convertible preferred stock.

Roger Penske, Chairman, said "1999 was a transitional year for UnitedAuto. Our entire team performed exceptionally well. Together, we strengthened relationships with our OEM partners, acquired new businesses, provided greater focus on the customer, restructured our management team and delivered outstanding dealership performance. Most importantly, we improved the CompanyÕs capital structure and implemented new advantageous financing agreements. With its strengthened balance sheet and access to capital, the Company is well positioned for growth".

Sam DiFeo Jr., added "We are very pleased with the performance of our dealerships. Same-store retail revenue increased by 11.5% in the fourth quarter and 12.9% for the full year, and same store retail gross profit increased by 6.4% and 11.1% in the corresponding periods, respectively. These improvements were driven primarily by increases in retail units sold and service and parts revenue".

Net income for the fourth quarter and year 1999 included after-tax extraordinary net gains of $0.4 million and $0.7 million, respectively, resulting from the replacement of a credit facility and the repurchase of $49.0 million ($37.0 million in the fourth quarter) of the CompanyÕs 11% Subordinated Notes. The fourth quarter and year 1998 included a $6.9 million after-tax charge for premiums to be paid to an insurance company for its assumption of the repair costs on certain warranties and extended service contracts, and an after-tax loss of $13.3 million related to the CompanyÕs discontinued auto finance company operations. Net income for 1998 also included a $1.2 million after-tax extraordinary loss which resulted from amending the CompanyÕs borrowing agreements.

Total retail new and used units sold increased 15.4% and 17.0% versus the fourth quarter and year 1998, respectively. The Company retailed 22,941 new and 11,835 used vehicles during the fourth quarter, and 93,259 new and 52,027 used vehicles for the year 1999. Vehicle sales represented approximately 85.7% of fourth quarter revenue and 86.0% of annual revenue; finance and insurance revenues represented approximately 4.1% for both the quarter and the year; and service and parts represented the remaining 10.2% and 9.9% in the quarter and year, respectively.

UnitedAuto, which has pursued a strategy based on internal growth from its existing dealerships as well as from strategic acquisitions, operates 104 franchises in 16 states and Puerto Rico. UnitedAuto dealerships sell new and used vehicles and market a complete line of aftermarket automotive products and services.

This press release contains forward-looking information, and actual results may materially vary from those expressed or implied herein. Factors, including, economic conditions, manufacturer approvals and acquisition risks, that could affect these results are described in the documents filed by the Company with the Securities and Exchange Commission.



                    
                             UNITEDAUTO GROUP, INC.

              Consolidated Statements of Operations (unaudited)

                (Amounts in Thousands, Except Per Share Data)

                                    Fourth Quarter

                                    1999       1998

 New Vehicle Sales                $599,316   $499,921

 Used Vehicle Sales                247,831    218,265

 Finance and Insurance              40,073     32,064

 Service and Parts                 101,601     87,763

 Total Revenues                    988,821    838,013

 Cost of Sales                     852,458    728,594

 Gross Profit                      136,363    109,419

 Selling, General and              112,783    102,360
 Administrative Expenses

 Operating Income                   23,580      7,059

 Floor Plan Interest               (7,953)    (6,364)

 Other Interest Expense            (5,834)    (8,081)

 Other Income (a)                     301       1,173

 Income (Loss) From Continuing      10,094    (6,213)
 Operations Before
 Minority Interests, Income
 Taxes and Extraordinary Item

 Minority Interests                  (180)      (136)

 Income Tax (Provision) Benefit    (4,491)      1,349
                             

 Income (Loss) From Continuing       5,423    (5,000)
 Operations
                        
 Income (Loss) From                    18    (13,281)
 Discontinued Operations,
 Net of Income Tax

 Income (Loss) Before                5,441   (18,281)
 Extraordinary Item

 Extraordinary Item, Net of            412        --
 Income Tax

 Net Income (Loss)                  $5,853  ($18,281)

 Diluted Earnings Per Share From     $0.18    ($0.22)
 Continuing Operations

 Diluted Earnings Per Share          $0.19    ($0.81)

 Diluted Weighted Average Shares    30,729     22,665
 Outstanding

 EBITDA (b)                        $28,832    $25,107



  a. Represents fees received under management agreements at certain
     dealerships for which acquisition is pending final manufacturer
     approval.
  b. EBITDA is defined as income from continuing operations before minority
     interests, income tax provision, floor plan interest, other interest
     expense, depreciation and amortization and the effect of the $12.6
     million unusual charge recorded during the fourth quarter of 1998.
     Depreciation and amortization amounted to $5.0 million and $3.0 million
     in 1999 and 1998, respectively.


                           UNITEDAUTO GROUP, INC.

              Consolidated Statements of Operations (unaudited)

                (Amounts in Thousands, Except Per Share Data)

                                        Year

                                  1999        1998

 New Vehicle Sales             $2,417,906  $1,958,885

 Used Vehicle Sales             1,040,026     922,793

 Finance and Insurance            165,751     127,405

 Service and Parts                398,834     334,064

 Total Revenues                 4,022,517   3,343,147

 Cost of Sales                  3,473,080   2,887,530

 Gross Profit                     549,437     455,617

 Selling, General and             445,142     375,043
 Administrative Expenses

 Operating Income                 104,295      80,574

 Floor Plan Interest             (28,676)    (28,718)

 Other Interest Expense          (29,344)    (31,462)

 Other Income (a)                  2,571        4,800

 Income From Continuing            48,846      25,194
 Operations Before
 Minority Interests, Income
 Taxes and Extraordinary
 Item

 Minority Interests                 (722)       (262)

 Income Tax Provision            (21,414)    (11,554)

 Income From Continuing            26,710      13,378
 Operations

 Income (Loss) From                   46     (12,940)
 Discontinued
 Operations, Net of
 Income Tax

 Income Before Extraordinary       26,756         438
 Item

 Extraordinary Item, Net of           732     (1,235)
 Income Tax

 Net Income (Loss)                $27,488      $(797)

 Diluted Earnings Per Share         $1.01       $0.64
 From Continuing Operations

 Diluted Earnings Per Share         $1.04     ($0.04)

 Diluted Weighted Average          26,526      20,932
 Shares Outstanding

 EBITDA (b)                      $125,997    $114,388



  a. Represents fees received under management agreements at certain
     dealerships for which acquisition is pending final manufacturer
     approval.
  b. EBITDA is defined as income from continuing operations before minority
     interests, income tax provision, floor plan interest, other interest
     expense, depreciation and amortization and the effect of the $12.6
     million unusual charge recorded during the fourth quarter of 1998.
     Depreciation and amortization amounted to $19.1 million and $16.5
     million in 1999 and 1998, respectively.

Media Contact:

Phillip M. Hartz
Director, Corporate Communications
212 715-8629