The Major Automotive Companies Reports First Quarter Results
KEW GARDENS, N.Y.--May 21, 2001--Gross Profits Increase to a Record $13.9 Million from $11.1 Million;
Net Income $786,000 versus $134,000; Net Income per Share
$0.11 versus $0.02
The Major Automotive Companies, Inc. (f/k/a Fidelity Holdings, Inc.) today reported record gross profits for the quarter ended March 31, 2001.
For the quarter ended March 31, 2001, revenues increased to $88,112,314 compared to $67,760,782 for the quarter ended March 31, 2000. Gross profits for the 2001 first quarter rose to a record $13,924,399 from $11,060,673 for the comparable 2000 quarter. Income from continuing operations was $785,985 in the first quarter of 2001, compared to $722,372 for the first quarter of 2000.
There was no loss from discontinued operations in the first three months of 2001, compared with a loss of $(588,068) from discontinued operations in the comparable 2000 period. Net profit was $785,985 or $0.11 per diluted share for the quarter ended March 31, 2001 versus a net profit of $134,304 or $.02 per diluted share for the comparable prior year's quarter. The average number of shares used in the computations was 6,890,450 and 5,458,206 in the 2001 and 2000 quarters, respectively, and reflect the Company's 1-for-5 reverse stock split effected on May 2, 2001.
Bruce Bendell, Chairman and Chief Executive Officer of The Major Automotive Companies, stated, "The results we have shown this quarter are gratifying. Our dealerships have again demonstrated sustained growth. We are looking forward to continued success as we set our sights on enhancing our reputation as a leading consolidator of automotive dealerships in the New York metropolitan area. We are confident that our growth, together with our recent name change, which more accurately reflects our core business, and our reverse stock split, will generate positive interest in our Company in the marketplace."
Richard L. Feinstein, Chief Financial Officer, commented: "Our regional growth strategy has resulted in continuing record sales and gross profits. We believe that the negative effects of our diverse discontinued operations are behind us. We look forward to continuing the growth of our business in a focused and prudent manner that will ultimately produce the results we are striving for."
The Major Automotive Companies is a leading consolidator of automotive dealerships in the New York Metropolitan area and 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 http://www.majorworld.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
Three Months Ended March 31,
2001 2000
---- ----
(Unaudited) (Unaudited)
Sales $ 88,112,314 $ 67,760,782
Cost of sales 74,187,915 56,700,109
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Gross profit 13,924,399 11,060,673
Operating expenses 12,259,008 9,807,380
Interest expense 864,406 515,785
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Income before income tax
expense and loss from
discontinued operations 800,985 737,508
Income tax expense
15,000 15,136
------------------ ----------------
Income from continuing
operations 785,985 722,372
Loss from discontinued
operations - (588,068)
------------------ ----------------
Net income $ 785,985 $ 134,304
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Earnings (loss) per share
Basic
Income from continuing
operations $ 0.15 $ 0.15
Loss from discontinued
operations - (0.12)
Net income 0.15 0.03
Diluted
Income from continuing
operations $ 0.11 $ 0.13
Loss from discontinued
operations - (0.11)
Net income .011 0.02
Weighted average number of
shares used in computation
Basic 5,088,072 4,920,980
Diluted 6,890,450 5,458,206