Universal Automotive Industries, Inc. Reports Profitable Q2 Results
Universal Automotive Industries, Inc. Reports Profitable Second Quarter Results
CHICAGO, Aug. 6 Universal Automotive Industries, Inc.
today announced that net sales for the
second quarter of 2001 were $20 million, which is even with sales of the
second quarter of 2000. For the six months ended June 30, 2001, sales were
$1.47 million or 3.9% less than the comparable 2000 period. The Company was
affected by the weakness throughout the automotive aftermarket, especially in
the first quarter of 2001. In addition, sales for the six month period ended
June 30, 2000 included opening inventory roll-out sales to Pep Boys, Inc., a
new customer in 2000, that were not repeated in 2001.
Total gross profit for the quarter ended June 30, 2001 was $4.1 million or
20.7% of net sales, which is down compared to gross profit of $4.4 million or
21.9% of net sales in the second quarter of 2000, excluding $114 thousand of
one-time costs to realign the Canadian manufacturing facilities. Margins were
slimmer for both the core brake business and the commodities business.
For the six month period ended June 30, 2001, gross profit was $7.0 million or
19.4% of sales compared to $8.4 million or 22.5% of sales for the same period
in 2000, excluding $353 thousand of one-time facility realignment costs. The
reduced gross profit was due to more competitive pricing and first quarter
underabsorption of manufacturing costs associated with the relocation of the
rotor machining facility from Texas to Missouri as the Texas facility was
wound down and the Missouri facility was ramped up.
Net income for the quarter ended June 30, 2001 without the loss of the
discontinued operation was $390 thousand ($0.05 per share) compared to net
income of $254 thousand ($0.04 per share) for the second quarter of 2000,
excluding the effect of one-time costs of $134 thousand net of tax ($0.02 per
share). For the 2001 six months-to-date, the net loss was $540 thousand
($0.07 per share) without the loss of the discontinued operation. Net
income for the same six month period of 2000 was $460 thousand ($0.07 per
share), excluding the effect of one-time costs of $283 thousand net of tax
($0.04 per share).
As a result of the Hungarian foundry not being disposed of within one year
of the decision to discontinue its operations, commencing in 2001, the Company
is required to include income or loss from the foundry in its earnings. The
loss amounted to $187 thousand ($0.03 per share) in the second quarter of 2001
and a loss of $342 thousand ($0.05 per share) in the six month period ended
June 30, 2001. The Company believes that the likelihood of sale and the
ultimate sales value have improved with the improvement experienced in the
foundry's operations.
Total net income for the second quarter of 2001 was $203 thousand
($0.03 per share) compared to total net income for the 2000 second quarter of
$120 thousand ($0.02 per share). For the six month period ended June 30,
2001, the total net loss was $882 thousand ($0.12 per share) versus total net
income of $177 thousand ($0.03 per share) for the same period in 2000.
Arvin Scott, President and CEO commented, "There are signs that a recovery
in the automotive aftermarket is underway. We are pleased with the growth of
our friction program in the second quarter and remain cautiously optimistic
that we will continue to see double-digit growth in this product line for the
UNIVERSAL AUTOMOTIVE INDUSTRIES, INC.
Summary of Financial Results
(000's) except per share data
Three Months Six Months
Ended June 30 Ended June 30
2001 2000 2001 2000
Net Sales:
Brake parts $18,844 $18,923 $33,720 $34,941
Commodities 1,155 1,073 2,308 2,557
Total 19,999 19,996 36,028 37,498
Gross profit 4,131 4,380 6,994 8,068
Gross profit percent 20.7% 21.9% 19.4% 21.5%
Selling, general, and
administrative expenses 3,197 3,500 6,379 6,588
Income from operations 934 880 615 1,480
Other (income) expense:
Interest expense and other, net 635 674 1,215 1,251
Other, net (81) (19) (60) (85)
Loss from discontinued operations 187 0 342 0
Pretax income (loss) 193 225 (882) 314
Income tax provision (benefit) (10) 105 0 137
Net income (loss) $203 $120 ($882) $177
Basic net income (loss)
per share $0.03 $0.02 ($0.12) $0.03
Weighted average
shares outstanding 7,473,682 6,914,310 7,384,542 6,876,810