UnitedAuto Reports Record Income for First Quarter 2001
DETROIT--April 23, 2001--Same Store Retail Revenue and Gross Profit Increased 3.5%
and 4.2%, Respectively
United Auto Group, Inc. , a leading automotive retailer, announced record results for first quarter 2001. First quarter revenues increased 25.6% to $1.4 billion from $1.1 billion in 2000. Net income in the quarter amounted to $6.6 million, which represents a 16.5% increase over the $5.6 million in the comparable prior year period. Earnings per share amounted to $0.21 per share, which represents a 10.5% increase over the $0.19 reported in first quarter 2000. Earnings per share reflects a 6.0% increase in weighted average shares outstanding from 30,074,000 to 31,843,000 in the first quarter 2001. First quarter 2001 includes pre-tax losses of $1.4 million related to dealerships which were sold or closed during the quarter. The Company retailed 31,035 and 16,486 new and used retail units, representing increases of 21.9% and 16.1%, respectively, versus first quarter 2000.
Roger Penske, Chairman, said, "This was an outstanding quarter for UnitedAuto. In this challenging operating environment, the strength of our business is evidenced by the continued growth of our same store operations and the excellent performance of our 2000 acquisitions. It is especially satisfying to see that the Company's first quarter 2001 same store results reflect: 2.7% increases in new and used retail vehicle revenues; a 12.4% increase in finance and insurance revenues; and a 6.2% increase in service and parts revenues, over the comparable prior year period. 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 first quarter, especially the improvement of same store dealership operating results which generated a 4.2% increase in retail gross profit versus the corresponding period in 2000."
UnitedAuto, which pursues a strategy based on internal growth from its existing dealerships, as well as from strategic acquisitions, operates 121 franchises in 18 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)
First Quarter
2001 2000
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New Vehicle Sales (a) $843,379 $663,800
Used Vehicle Sales (b) 354,597 293,071
Finance and Insurance 56,378 43,735
Service and Parts 140,622 110,161
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Total Revenues 1,394,976 1,110,767
Cost of Sales 1,203,186 958,654
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Gross Profit (c) 191,790 152,113
Selling, General & Administrative Expenses 157,894 124,844
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Operating Income 33,896 27,269
Floor Plan Interest Expense (12,578) (9,918)
Other Interest Expense (9,668) (6,863)
------- -------
Income Before Minority Interests and Income
Tax Provision 11,650 10,488
Minority Interests (14) (231)
Income Tax Provision (5,066) (4,617)
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Net Income $6,570 $5,640
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Diluted Earnings Per Share $0.21 $0.19
===== =====
Diluted Weighted Average Shares Outstanding 31,843 30,074
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EBITDA (d) $28,995 $22,728
======= =======
Same Store Operating Data
New Vehicle Retail Sales $584,804 $569,268
Used Vehicle Retail Sales 206,940 201,474
Finance and Insurance 37,839 33,676
Service and Parts 103,210 97,145
(a) Includes fleet sales of $37.5 million and $31.3 million in
2001 and 2000, respectively.
(b) Includes wholesale sales of $88.6 million and $76.5 million in
2001 and 2000, 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 8.3%, 10.5%, 58.6%, and 44.8%,
respectively, compared with 8.6%, 10.9%, 58.6% and 43.3% in
the comparable prior year period.
(d) EBITDA is defined as income before minority interests, income
tax provision, other interest expense, depreciation and
amortization. Depreciation and amortization amounted to $7.7
million and $5.4 million in 2001 and 2000, respectively.
UNITED AUTO GROUP, INC.
Consolidated Condensed Balance Sheets
(Amounts In Thousands)
(Unaudited)
3/31/01 3/31/00 12/31/00
------- ------- --------
Assets
Cash and Cash Equivalents $485 $15,524 $7,413
Accounts Receivable, Net 221,751 148,216 190,792
Inventories 743,090 553,762 737,942
Other Current Assets 15,423 11,036 15,469
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Total Current Assets 980,749 728,538 951,616
Property and Equipment, Net 131,039 76,947 107,085
Intangible Assets Net 726,061 530,853 664,510
Other Assets 40,282 32,938 39,484
------ ------ ------
Total Assets $1,878,131 $1,369,276 $1,762,695
========== ========== ==========
Liabilities and Stockholders' Equity
Floor Plan Notes Payable $674,490 $503,098 $689,687
Accounts Payable and Accrued Expenses 136,484 95,226 127,419
Current Portion Long - Term Debt 36,942 12,671 41,456
------ ------ ------
Total Current Liabilities 847,916 610,995 858,562
Long - Term Debt (a) 486,528 286,804 377,721
Other Liabilities 76,317 46,702 64,742
------ ------ ------
Total Liabilities 1,410,761 944,501 1,301,025
Stockholders' Equity (b) 467,370 424,775 461,670
------- ------- -------
Total Liabilities and
Stockholders' Equity $1,878,131 $1,369,276 $1,762,695
========== ========== ==========
(a) Availability under the Company's credit facility amounts to
$205.4 million as of March 31, 2001
(b) Includes a $14.0 million decrease at March 31, 2001 due to the
impact of Statement of Financial Accounting Standards No. 133
- Accounting For Derivative Instruments and Hedging Activities