Fidelity Holdings Reports Year-End Results
KEW GARDENS, N.Y.--April 18, 2001--Fidelity Holdings, Inc. d/b/a The Major Automotive Companies, Inc.| -- | Gross Profits Increase to a Record $49.9 Million from $33. 4 Million |
| -- | Pre-tax Income From Continuing Operations $2.7 million versus $1.7 Million |
| -- | Net Loss from Discontinued Operations $22.4 million |
Fidelity Holdings, Inc. d/b/a The Major Automotive Companies, Inc. today reported record gross profits for the year ended December 31, 2000.
For the year ended December 31, 2000, revenues increased to $322,142,231 compared to $209,531,993 for the year ended December 31, 1999. Gross profits for the year rose to a record $49,895,596 from $33,410,623 for the 1999 year. Income from continuing operations before taxes was $2,686,247 in the year 2000, compared to $1,705,955 for 1999.
Loss from discontinued operations was $(22,427,322) in 2000, compared with a loss of $(4,006,103) from discontinued operations in 1999. Net loss was $(21,125,075) or $(0.83) per diluted share for the year ended December 31, 2000 versus a net of $(3,190,148) or $(.15) per diluted share for the prior year. The average number of shares used in the computations was 25,509,144 and 21,054,183 in the 2000 and 1999 years, respectively.
Bruce Bendell, Chairman and Chief Executive Officer of Fidelity stated, "We are very proud of the results obtained from the operations of our automotive dealerships. We set records for sales revenues, new and used vehicle units sold and gross profits. The increases came from substantial internal growth in same-store sales, as well as from the integration of newly acquired dealerships in Long Island, New York and New Jersey. We are confident that our decision to discontinue the operations of the technology division, in light of the current economic climate, has been prudent. This will allow us to focus on what we do best - strengthening our position as a leading consolidator of automotive dealerships in the New York metropolitan area."
Richard L. Feinstein, Chief Financial Officer, commented: "The Company has incurred significant, one-time, primarily, non-cash charges this year in connection with the Board's decision to discontinue the operations of our former technology division. However, the automotive dealerships have delivered record sales and gross profits. We believe that our demonstrated ability to grow profitably as a regional automotive dealership group, will be recognized in the market place and will ultimately benefit our shareholders."
Fidelity Holdings' operates through Major Automotive Group, a leading consolidator of automotive dealerships in the New York Metropolitan area. Fidelity Holdings, Inc. is continuing to divest its remaining non-automotive activities by way of sale, merger, consolidation or other opportunities.
For additional information, visit the Company's website at www.fdhg.com.
The information contained in this press release, including any "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934 contained herein, should be reviewed in conjunction with the Company's annual report on Form 10-K and other publicly available information regarding the Company, copies of which are available from the Company upon request. Such publicly available information sets forth many risks and uncertainties related to the Company's business and such statements, including risks and uncertainties related to that are unpredictable and outside of the influence and/or control of the Company.
FIDELITY HOLDINGS, INC.
CONSOLIDATED STATEMENT OF INCOME
Years Ended December 31,
2000 1999
(Restated)
Sales $ 322,142,231 $ 209,531,993
Cost of sales 272,246,635 176,121,370
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Gross profit 49,895,596 33,410,623
Operating expenses 44,548,711 29,957,748
Interest expense 2,660,638 1,746,920
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Income before income tax expense and
loss from discontinued operations 2,686,247 1,705,955
Income tax expense (benefit) 1,384,000 890,000
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Income from continuing operations 1,302,247 815,955
Loss from discontinued operations (22,427,322) (4,006,103)
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Net loss $ (21,125,075) $ (3,190,148)
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Earnings (loss) per share
Basic
Income (loss) from continuing
operations $ 0.05 $ 0.04
Loss from discontinued operations (0.87) (0.19)
Net income (0.83) (0.15)
Diluted
Income (loss) from continuing
operations $ 0.04 $ 0.04
Loss from discontinued operations (0.87) (0.19)
Net income (0.83) (0.15)
Weighted average number of shares
used in computation
Basic 25,509,144 21,054,183
Diluted 33,955,520 21,054,183