Penske Automotive     Print Page | Close Window

Press Release

Unitedauto Reports Record Fourth Quarter And Full Year Results

Penske Increases Investment

Revenues Increased 30.4% To $1.6 Billion In The Fourth Quarter And 27.4% To $6.2 Billion For The Full Year

Net Income Increased 84.4% To $11.3 Million ($0.32 Per Share) In The Fourth Quarter And 49.0% To $44.7 Million ($1.31 Per Share) For The Full Year

Same Store Retail Revenues Increased 20.0% In The Fourth Quarter And 9.1% For The Full Year

DETROIT, MI, February 5, 2002 , United Auto Group, Inc. (NYSE: UAG), a FORTUNE 500 automotive specialty retailer, announced record results for fourth quarter and full year 2001. Fourth quarter revenues increased 30.4% to $1.6 billion versus $1.2 billion in 2000, and net income increased 84.4% to $11.3 million. Earnings per share were $0.32, an increase of 52.4% over the $0.21 reported in fourth quarter 2000. Earnings per share reflect a 21.9% increase in weighted average shares outstanding.

For the full year, revenues increased 27.4% to $6.2 billion versus $4.9 billion in 2000 and net income increased 49.0% to $44.7 million. Earnings per share were $1.31, an increase of 28.4% over the $1.02 reported in 2000. Earnings per share reflect a 16.3% increase in weighted average shares outstanding. Full year 2000 net income includes an extraordinary loss of $4.0 million resulting from the retirement of debt in second quarter 2000.

The Company also announced that on February 1, 2002, Penske Capital Partners exercised warrants to purchase 5,021,693 shares of the Companyís common stock. The warrants were granted to Penske Capital Partners in 1999 as partial consideration for their original investment in the Company. The $62.5 million received by the Company is expected to fund future acquisitions.

Roger Penske, Chairman, said, ìThis was another record quarter for UnitedAuto and is the eleventh consecutive quarter of same store unit and revenue growth since the Penske investment. Despite the effects of the slowdown in the U.S. economy, our business has continued to expand. Zero percent financing offered by the U.S. manufacturers contributed to a 17.2% increase in same store new retail unit sales from our domestic brands. We also achieved 26.5% same store new retail unit growth in our foreign portfolio. I am proud of the Companyís achievements in 2001 and believe our focus on customer satisfaction will continue to drive expansion of our business in 2002 and beyond. As we move into 2002, our expectation is to earn at least $1.73 per share for the year, after the estimated impact of the new accounting standard affecting the amortization of goodwill and based upon our estimate of 39.0 million weighted average shares outstanding. On a quarterly basis, the $1.73 is expected to be earned as follows: Q1 - $0.29; Q2 - $0.53; Q3 - $0.53; Q4 - $0.38.î

Sam DiFeo Jr., President, added, ìI am particularly pleased with our results for the fourth quarter. While the catalyst for our outstanding performance was new car sales, same store used retail unit sales increased 20.7%. In addition, finance and insurance revenue increased 28.6% on a same store basis. These excellent results from the retail sale of automobiles were supported by continued steady growth in our service and parts operations. Same store service and parts revenues increased 6.0% during the quarter, and reflect the results of our investments in capacity in this important aspect of our business.î

UnitedAuto, which pursues a strategy based on internal growth from its existing dealerships, as well as from strategic acquisitions, operates 127 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 fourth quarter and full year 2001 on Tuesday, February 5, 2002 at 2 P.M. Eastern time. Advance registration is not required. Participants must call (800) 369-1911 (International, please call (712) 271-3820). Calls need to be made shortly before the call is to commence. Please provide the leaderís 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 UnitedAutoís 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 UnitedAutoís business, markets, conditions and other uncertainties, which could effect UnitedAutoís future performance, which are contained in UnitedAutoís filings with the Securities and Exchange Commission and which are incorporated into this press release by reference.

UNITED AUTO GROUP, INC.
Consolidated Statements of Income (Unaudited)
(Amounts In Thousands, Except Per Share Data)

Fourth Quarter

2001

2000

New Vehicle Sales (a)

$1,024,469

$762,484

Used Vehicle Sales (b)

369,250

292,736

Finance and Insurance

64,838

48,044

Service and Parts

156,164

134,636

Total Revenues

1,614,721

1,237,900

Cost of Sales

1,395,448

1,061,449

Gross Profit (c)

219,273

176,451

Selling, General & Administrative Expenses

181,973

143,495

Operating Income

37,300

32,956

Floor Plan Interest Expense

(8,983)

(12,723)

Other Interest Expense

(7,551)

(9,803)

Income Before Minority Interests and Income

Tax Provision

20,766

10,430

Minority Interests

(451)

(37)

Income Tax Provision

(9,033)

(4,276)

Net Income

$11,282

$6,117

Diluted Earnings Per Share

$0.32

$0.21

Diluted Weighted Average Shares Outstanding

35,652

29,243

EBITDA (d)

$37,272

$27,060

New Retail Units

36,776

27,883

Used Retail Units

17,184

13,436

Total Retail Units

53,960

41,319


Same Store Operating Data

New Vehicle Retail Sales

$834,823

$685,804

Used Vehicle Retail Sales

239,720

197,637

Finance and Insurance

49,129

38,202

Service and Parts

131,767

124,365

Total Same Store Retail Revenue

$1,255,439

$1,046,008

 

  1. Includes fleet sales of $31.5 million and $24.8 million in 2001 and 2000, respectively.
  2. Includes wholesale sales of $87.9 million and $79.4 million in 2001 and 2000, respectively.
  3. Gross profit as a percentage of revenues for new vehicle retail, used vehicle retail, finance and insurance and service and parts revenues was 8.3%, 10.7%, 57.6%, and 45.2%, respectively, compared with 9.1%, 10.4%, 56.3% and 44.6% in the comparable prior year period.
  4. EBITDA is defined as income before minority interests, income tax provision, other interest expense, depreciation and amortization. Depreciation and amortization amounted to $9.0 million and $6.8 million in 2001 and 2000, respectively.

 

UNITED AUTO GROUP, INC.
Consolidated Statements of Income (Unaudited)
(Amounts In Thousands, Except Per Share Data)

Year

2001

2000

New Vehicle Sales (a)

$3,866,699

$2,971,468

Used Vehicle Sales (b)

1,488,070

1,227,597

Finance and Insurance

253,737

193,121

Service and Parts

612,157

491,803

Total Revenues

6,220,663

4,883,989

Cost of Sales

5,369,505

4,206,032

Gross Profit (c)

851,158

677,957

Selling, General & Administrative Expenses

693,303

539,704

Operating Income

157,855

138,253

Floor Plan Interest Expense

(42,430)

(44,406)

Other Interest Expense

(34,790)

(32,777)

Income Before Minority Interests, Income

Tax Provision and Extraordinary Item

80,635

61,070

Minority Interests

(815)

(512)

Income Tax Provision

(35,075)

(26,558)

Income Before Extraordinary Item

44,745

34,000

Extraordinary Item (d)

--

(3,969)

Net Income

$44,745

$30,031

Diluted Earnings Per Share Before Extraordinary Item

$1.31

$1.16

Diluted Earnings Per Share

$1.31

$1.02

Diluted Weighted Average Shares Outstanding

34,196

29,415

EBITDA (e)

$149,050

$118,021

New Retail Units

141,056

112,676

Used Retail Units

69,302

58,252

Total Retail Units

210,358

170,928


Same Store Operating Data

New Vehicle Retail Sales

$2,550,324

$2,312,449

Used Vehicle Retail Sales

815,018

767,625

Finance and Insurance

164,757

137,952

Service and Parts

415,417

398,617

Total Same Store Retail Revenue

$3,945,516

$3,616,643

 

  1. Includes fleet sales of $160.0 million and $130.7 million in 2001 and 2000, respectively.
  2. Includes wholesale sales of $360.1 million and $315.6 million in 2001 and 2000, respectively.
  3. Gross profit as a percentage of revenues for new vehicle retail, used vehicle retail, finance and insurance and service and parts revenues was 8.3%, 10.6%, 58.5%, and 44.9%, respectively, compared with 8.8%, 10.7%, 58.7% and 43.8% in the comparable prior year period.
  4. Results from the repurchase of $147.0 million of 11% subordinated notes at 101% of face value, including the write-off of deferred financing costs.
  5. EBITDA is defined as income before minority interests, income tax provision, extraordinary item, other interest expense, depreciation and amortization. Depreciation and amortization amounted to $33.6 million and $24.2 million in 2001 and 2000, respectively.

 

UNITED AUTO GROUP, INC.
Consolidated Condensed Balance Sheets (Unaudited)
(Amounts In Thousands)

12/31/01

12/31/00

9/30/01

Assets

Cash and Cash Equivalents

$5,416

$7,413

$4,658

Accounts Receivable, Net

258,266

190,792

223,550

Inventories

641,400

737,942

661,206

Other Current Assets

16,434

15,469

20,052

Total Current Assets

921,516

951,616

909,466

Property and Equipment, Net

185,452

107,085

169,553

Intangible Assets, Net

784,149

664,510

743,467

Other Assets

55,459

39,484

34,601

Total Assets

$1,946,576

$1,762,695

$1,857,087

Liabilities and Stockholders' Equity

Floor Plan Notes Payable

$620,014

$689,687

$637,067

Accounts Payable and Accrued Expenses

162,062

127,419

146,865

Current Portion Long - Term Debt

4,202

41,456

32,051

Total Current Liabilities

786,278

858,562

815,983

Long - Term Debt (a)

551,840

377,721

463,590

Other Liabilities

92,775

64,742

83,549

Total Liabilities

1,430,893

1,301,025

1,363,122

Stockholders' Equity (b)

515,683

461,670

493,965

Total Liabilities and Stockholders' Equity

$1,946,576

$1,762,695

$1,857,087

  1. Availability under the Company's credit facility amounts to $389.5 million as of December 31, 2001
  2. Includes a $7.2 million decrease at December 31, 2001 due to the impact of Statement of Financial

Accounting Standards No. 133 - Accounting For Derivative Instruments and Hedging Activities