|UnitedAuto Reports Record Results For First Quarter 2000; Net Income Increased 52.5% to $5.6 Million, or $0.19 Per Share, Versus $3.7 Million, or $0.16 Per Share, for the Comparable Period in 1999; Same Store Dealership Retail Revenues Increased 13.3% in |
Net Income Increased 52.5% to $5.6 Million, or $0.19 Per Share, Versus $3.7 Million, or $0.16 Per Share, for the Comparable Period in 1999
Same Store Dealership Retail Revenues Increased 13.3% in the Quarter Over the Comparable Period in 1999
Detroit, MI, May 8, 2000 - UnitedAuto Group, Inc. (NYSE: UAG), a leading publicly traded automotive retailer, today announced a record first quarter
2000 net income of $5.6 million, which represents a 52.5% increase over the
comparable prior year period. Earnings per diluted share were $0.19, an
18.8% increase over the $0.16 per share reported in the first quarter 1999.
Earnings per share reflects a 29.0% increase in weighted average shares
outstanding from 23,307,000 to 30,074,000 in the first quarter of 2000. The
net increase resulted primarily from the issuance of $83.0 million in
convertible preferred stock.
First quarter revenues increased 22.8% to $1,110.8 million versus $904.7
million in the comparable prior year period. Same store revenues were $925.6
million in the first quarter 2000, an increase of 11.3% over the previous
year. Same store retail revenues, excluding wholesale and fleet sales,
increased 13.3% to $834.3 million.
Roger Penske, Chairman, said "This was an outstanding quarter for
UnitedAuto. The strength of our business is evidenced by an overall 21.9%
increase in gross profit over the comparable period in 1999, which includes
an 11.0% increase in same store gross profits."
Sam DiFeo Jr., added "We are very pleased with the performance of our
dealerships, especially the continued improvement of same store dealership
operating results in all lines of our business versus the corresponding
period in 1999. These improvements were driven primarily by increased sales
Total retail new and used unit sales increased 25.8% and 12.9%,
respectively, versus the first quarter of 1999. The Company retailed 25,466
new and 14,195 used vehicles during the first quarter. Vehicle sales
represented approximately 86.2% of first quarter revenue; finance and
insurance revenues represented approximately 3.9%; and service and parts
represented the remaining 9.9%.
UnitedAuto, which pursues a strategy based on internal growth from its
existing dealerships as well as from strategic acquisitions, operates 111 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)
New Vehicle Sales $663,800 $524,691
Used Vehicle Sales 293,071 250,669
Finance and Insurance 43,735 36,664
Service and Parts 110,161 92,708
Total Revenues 1,110,767 904,732
Cost of Sales 958,654 779,974
Gross Profit 152,113 124,758
Selling, General and 124,844 103,552
Operating Income 27,269 21,206
Floor Plan Interest (9,918) (6,503)
Other Interest Expense (6,863) (8,442)
Other Income (a) -- 794
Income Before Minority 10,488 7,055
Interests and Income Taxes
Minority Interest (231) (148)
Income Tax Provision (4,617) (3,209)
Net Income $5,640 $3,698
Diluted Earnings Per Share $0.19 $0.16
Diluted Weighted Average Shares 30,074 23,307
EBITDA (b) $32,646 $26,555
a. Represents fees received under management agreements at certain
dealerships for which the closing of the acquisition of such
dealerships awaited 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. Depreciation and amortization
amounted to $5.4 million and $4.6 million in 2000 and 1999,