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Press Release

UnitedAuto Reports Results For Second Quarter 2000; Income Before Extraordinary Item Increased 28.4% to $11.1 Million, or $0.38 Per Share, Versus $8.6 Million, or $0.35 Per Share, for the Comparable Period in 1999; Same Store Retail Revenues and Gross Pro

Income Before Extraordinary Item Increased 28.4% to $11.1 Million, or $0.38 Per Share, Versus $8.6 Million, or $0.35 Per Share, for the Comparable Period in 1999

Same Store Retail Revenues and Gross Profit Increased 4.5% and 6.2%, Respectively, Reflecting Increases in Vehicle Sales, F&I and Service and Parts.

DETROIT, MI, July 20, 2000 - UnitedAuto Group, Inc. (NYSE: UAG), a leading publicly traded automotive retailer, today announced second quarter earnings. Income before extraordinary item in the quarter amounted to $11.1 million, which represents a 28.4% increase over the comparable prior year period. Income before extraordinary item per diluted share was $0.38, an 8.6% increase over the $0.35 per share reported in the second quarter 1999.

Net income for the second quarter 2000 was $7.1 million, or $0.24 per share on a fully diluted basis, after an extraordinary charge of $4.0 million resulting from a repurchase of the Company's 11% subordinated debt. Net income in the second quarter 1999 was $8.6 million, or $0.35 per share on a fully diluted basis.

Earnings per share reflects a 20.4% increase in weighted average shares outstanding from 24,422,000 to 29,400,000 in the second quarter of 2000. The increase resulted primarily from the issuance of $83.0 million in convertible preferred stock in 1999, offset in part by the impact on average shares of the purchase of 2,990,000 common shares under the Company's share repurchase program in 2000.

Second quarter revenues increased 15.4% to $1.2 billion versus $1.0 billion in the comparable prior year period. Same store revenues were $983.3 million in the second quarter 2000, an increase of 2.6% over the previous year. Same store retail revenues, which exclude wholesale and fleet sales, increased 4.5% to $881.7 million.

Total new and used retail unit sales increased 13.8% and 9.3%, respectively, versus the second quarter of 1999. The Company retailed 27,327 new and 14,776 used vehicles during the second quarter versus 24,018 new and 13,517 used vehicles for the comparable 1999 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 17.1% increase in gross profit over the comparable period in 1999, which includes a 6.2% increase in same store retail gross profits."

Sam DiFeo Jr., 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 six months ended June 30, 2000, income before extraordinary item amounted to $16.7 million, which represents a 35.6% increase over the first half 1999. Income before extraordinary item per diluted share was $0.56, a 5.7% increase over the $0.53 per share reported in the comparable prior year period. Net income for the six months ended June 30, 2000 was $12.7 million, or $0.43 per share on a fully diluted basis, after the $4.0 million extraordinary charge. Net income for the first half 1999 was $12.3 million, or $0.53 per share on a fully diluted basis. Earnings per share reflects a 28.5% increase in weighted average shares outstanding from 23,202,000 to 29,808,000 during the six months ended June 30, 2000.

Total new and used retail unit sales increased 19.3% and 11.1%, respectively, in the six months ended June 30, 2000 versus the comparable period in 1999. The Company retailed 52,793 new and 28,971 used vehicles during the first half of 2000 versus 44,258 new and 26,086 used vehicles for the comparable 1999 period.

For the six months ended June 30, 2000, revenues increased 18.8% to $2.3 billion versus $1.9 billion in the first half 1999. Same store revenues were $1.9 billion in the first half 2000, an increase of 6.5% over the previous year. Same store retail revenues, which exclude wholesale and fleet sales, increased 8.4% to $1.7 billion.

UnitedAuto, which pursues a strategy based on internal growth from its existing dealerships as well as from strategic acquisitions, operates 120 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.

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)

                                    Second Quarter

                                    2000       1999

 New Vehicle Sales                $727,072   $633,337

 Used Vehicle Sales                312,306    266,818

 Finance and Insurance              47,969     43,335

 Service and Parts                 116,802    100,108

 Total Revenues                  1,204,149  1,043,598

 Cost of Sales                   1,037,369    901,164

 Gross Profit                      166,780    142,434

 Selling, General and              128,912    111,484
 Administrative Expenses

 Operating Income                   37,868     30,950

 Floor Plan Interest Expense      (10,539)    (7,221)

 Other Interest Expense            (7,430)    (7,813)

 Income Before Minority             19,899     15,916
 Interests and

 Income Tax Provision

 Minority Interests                   (82)      (213)

 Income Tax Provision              (8,753)    (7,083)

 Income before Extraordinary        11,064      8,620
 Item

 Extraordinary Loss, Net of        (3,969)         --
 Income Tax (a)

 Net Income                         $7,095     $8,620

 Diluted Earnings per Share          $0.38      $0.35
 before Extraordinary Item

 Diluted Earnings Per Share          $0.24      $0.35

 Diluted Weighted Average           29,400     24,422
 Shares Outstanding

 EBITDA (b)                        $43,572    $35,629



  a. Results from the repurchase of $147 million of 11% subordinated notes
     at 101% of face value, including the write-off of deferred financing
     costs.
  b. 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 $5.7 million and $4.7 million in 2000 and 1999, respectively.

                           UNITEDAUTO GROUP, INC.

              Consolidated Statements of Operations (Unaudited)

                (Amounts in Thousands, Except Per Share Data)

                                     First Half

                                  2000        1999

 New Vehicle Sales             $1,390,872  $1,158,028

 Used Vehicle Sales               605,377     517,487

 Finance and Insurance             91,704      79,999

 Service and Parts                226,963     192,816

 Total Revenues                 2,314,916   1,948,330

 Cost of Sales                  1,996,023   1,680,344

 Gross Profit                     318,893     267,986

 Selling, General and             253,756     215,036
 Administrative Expenses

 Operating Income                  65,137      52,950

 Floor Plan Interest Expense     (20,457)    (13,724)

 Other Interest Expense          (14,293)    (16,255)

 Income Before Minority            30,387      22,971
 Interests and

 Income Tax Provision

 Minority Interests                 (313)       (361)

 Income Tax Provision            (13,370)    (10,292)

 Income before Extraordinary       16,704      12,318
 Item

 Extraordinary Loss, Net of       (3,969)          --
 Income Tax (a)

 Net Income                       $12,735     $12,318

 Diluted Earnings per Share         $0.56       $0.53
 before Extraordinary Item

 Diluted Earnings Per Share         $0.43       $0.53

 Diluted Weighted Average          29,808      23,202
 Shares Outstanding

 EBITDA (b)                       $76,218     $62,184



  a. Results from the repurchase of $147 million of 11% subordinated notes
     at 101% of face value, including the write-off of deferred financing
     costs.
  b. 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 $11.1 million and $9.2 million in 2000 and 1999, respectively.