UnitedAuto Reports Record Income for Fourth Quarter and Full-year 2000
DETROIT, Mich.--Feb. 5, 2001--Excluding Extraordinary Items, Full-Year Income Increased 27.1% to
$34.0 Million, or $1.16 Per Share
United Auto Group, Inc. , a leading automotive retailer, announced results for the fourth quarter and year ended December 31, 2000. Fourth quarter revenues increased 25.2% to $1.2 billion versus $1.0 billion in 1999. Net income in the quarter amounted to $6.1 million, or $0.21 per share, which represents a 4.5% increase over the $5.9 million, or $0.19 per share, reported in the fourth quarter 1999. Fourth quarter income increased 12.4% compared to the comparable 1999 quarter before extraordinary items. Total new and used retail unit sales increased 21.5% and 13.5%, respectively, versus the fourth quarter of 1999.
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 our same store performance. Excluding the effects of severe weather, which impacted our South Central Region in December, same store retail revenues and gross profit increased 3.6% and 4.9%, respectively, versus the fourth quarter 1999. Our outlook remains positive, and we are comfortable the Company will meet or exceed the First Call Analysts' consensus estimate of $1.07 per share for 2001."
Sam DiFeo Jr., President, added, "The impact of our continued focus on operations is evidenced by the excellent performance of our dealerships during the fourth quarter, especially the continued improvement of same store dealership operating results in all aspects of our business versus the corresponding period in 1999, with a solid 3.6% increase in same store retail revenues."
For the year ended December 31, 2000, revenues increased 21.4% to $4.9 billion versus $4.0 billion in 1999. Net income was $30.0 million, or $1.02 per share, which represents a 9.3% increase over 1999. Net income 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 $34.0 million, or $1.16 per share, which represents a 27.1% increase over income before extraordinary item in 1999. Total new and used retail unit sales increased 20.8% and 12.0%, respectively, in the year ended December 31, 2000 versus 1999.
UnitedAuto, which pursues a strategy based on internal growth from its existing dealerships, as well as from strategic acquisitions, operates 125 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.
UNITED AUTO GROUP, INC.
Consolidated Statements of Operations (Unaudited)
(Amounts In Thousands, Except Per Share Data)
Fourth Quarter
--------------------------------
2000 1999
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New Vehicle Sales (a) $762,484 $599,316
Used Vehicle Sales (b) 292,736 247,831
Finance and Insurance 48,044 40,073
Service and Parts 134,636 101,601
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Total Revenues 1,237,900 988,821
Cost of Sales 1,061,449 852,458
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Gross Profit (c) 176,451 136,363
Selling, General &
Administrative Expenses 143,495 112,464
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Operating Income 32,956 23,899
Floor Plan Interest Expense (12,723) (7,953)
Other Interest Expense (9,803) (5,834)
------- -------
Income Before Minority
Interests, Income
Tax Provision
and Extraordinary Item 10,430 10,112
Minority Interests (37) (180)
Income Tax Provision (4,276) (4,491)
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Income before
Extraordinary Item 6,117 5,441
Extraordinary Item,
Net of Taxes (d) -- 412
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Net Income $6,117 $5,853
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Diluted Earnings Per Share
Before Extraordinary Item $0.21 $0.18
===== =====
Diluted Earnings Per Share $0.21 $0.19
===== =====
Diluted Weighted Average
Shares Outstanding 29,243 30,729
====== ======
EBITDA (e) $27,060 $20,879
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Same Store Operating Data
New Vehicle Sales (f) $566,604 $562,965
Used Vehicle Sales (g) 229,980 232,444
Finance and Insurance 31,671 30,778
Service and Parts 101,580 94,245
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Total revenue $929,835 $920,432
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(a) Includes fleet sales of $24.8 million and $33.5 million in 2000
and 1999, respectively.
(b) Includes wholesale sales of $79.4 million and $65.2 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 9.1%, 10.4%, 56.3%, and 44.6%, respectively, compared
with 8.9%, 10.5%, 56.0% and 43.6% in the comparable prior year
period.
(d) Results from the repurchase of $37.0 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, other interest expense, depreciation and amortization.
Depreciation and amortization amounted to $6.8 million and $5.0
million in 2000 and 1999, respectively.
(f) Includes fleet sales of $23.3 million and $30.2 million in 2000
and 1999, respectively.
(g) Includes wholesale sales of $59.8 million and $59.3 million in
2000 and 1999, respectively.
UNITED AUTO GROUP, INC.
Consolidated Statements of Operations (Unaudited)
(Amounts In Thousands, Except Per Share Data)
Year
----------------------------
2000 1999
---- ----
New Vehicle Sales (a) $2,971,468 $2,417,906
Used Vehicle Sales (b) 1,227,597 1,040,026
Finance and Insurance 193,121 165,751
Service and Parts 491,803 398,834
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Total Revenues 4,883,989 4,022,517
Cost of Sales 4,206,032 3,473,080
--------- ---------
Gross Profit (c) 677,957 549,437
Selling, General &
Administrative Expenses 539,704 442,525
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Operating Income 138,253 106,912
Floor Plan Interest Expense (44,406) (28,676)
Other Interest Expense (32,777) (29,344)
-------- --------
Income Before
Minority Interests,
Income
Tax Provision and
Extraordinary Item 61,070 48,892
Minority Interests (512) (722)
Income Tax Provision (26,558) (21,414)
-------- --------
Income before Extraordinary Item 34,000 26,756
Extraordinary Item, Net of Taxes (d) (3,969) 732
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Net Income $30,031 $27,488
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Diluted Earnings Per Share
Before Extraordinary Item $1.16 $1.01
===== =====
Diluted Earnings Per Share $1.02 $1.04
===== =====
Diluted Weighted
Average Shares Outstanding 29,415 26,526
====== ======
EBITDA (e) $118,021 $97,321
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Same Store Operating Data
New Vehicle Sales (f) $2,235,314 $2,138,608
Used Vehicle Sales (g) 952,449 925,381
Finance and Insurance 128,906 120,137
Service and Parts 369,830 342,746
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Total revenue $3,686,499 $3,526,872
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(a) Includes fleet sales of $130.7 million and $170.1 million in 2000
and 1999, respectively.
(b) Includes wholesale sales of $315.6 million and $270.4 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 8.8%, 10.7%, 58.7%, and 43.8%, respectively, compared
with 8.6%, 11.1%, 58.8% and 43.4% 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 $49.0
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, other interest expense, depreciation and amortization.
Depreciation and amortization amounted to $24.2 million and $19.1
million in 2000 and 1999, respectively.
(f) Includes fleet sales of $124.5 million and $152.7 million in 2000
and 1999, respectively.
(g) Includes wholesale sales of $225.5 million and $233.7 million in
2000 and 1999, respectively.
UNITED AUTO GROUP, INC.
Consolidated Condensed Balance Sheets
(Amounts In Thousands)
12/31/00 12/31/99
Assets (Unaudited)
Cash and Cash Equivalents $7,413 $19,847
Accounts Receivable, Net 190,792 140,473
Inventories 737,942 508,289
Other Current Assets 15,469 10,723
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Total Current Assets 951,616 679,332
Property and Equipment, Net 107,085 68,232
Intangible Assets , Net 657,710 494,957
Other Assets 39,484 36,816
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Total Assets $1,755,895 $1,279,337
========== ==========
Liabilities and Stockholders' Equity
Floor Plan Notes Payable $689,687 $478,460
Accounts Payable and Accrued Expenses 120,619 93,441
Current Portion Long - Term Debt 41,456 10,389
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Total Current Liabilities 851,762 582,290
Long - Term Debt (a) 377,721 218,535
Other Liabilities 64,742 47,647
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Total Liabilities 1,294,225 848,472
Stockholders' Equity 461,670 430,865
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Total Liabilities
and Stockholders' Equity $1,755,895 $1,279,337
========== ==========
(a) Availability under the Company's credit facility amounts to $316.0 million as of December 31, 2000.