The Major Automotive Companies Reports First Half Results
LONG ISLAND CITY, N.Y.--Aug. 20, 2001--- Revenues Increase to a Record $190 Million from $154 Million -
-Gross Profits a Record $30.1 Million versus $24.6 million -
- Net Income $723,000 versus $642,000 -
The Major Automotive Companies, Inc. (f/k/a Fidelity Holdings, Inc.) today reported record revenues and gross profits for the six months ended June 30, 2001.
Revenues for the first six months of the year ended June 30, 2000 were $190,436,097 compared with $153,574,382 for the comparable 2000 period. Income from continuing operations for the first half of 2001 was $723,717 ($0.09 per diluted share) compared with $1,232,927 ($.23 per diluted share) for the 2000 period. Net income for the six months ended June 30, 2001 was $723,717, or $.09, per diluted share versus $642,619 or $.12 per diluted share for the six months ended June 30, 2000. The average number of shares used in the computation in the 2000 period was 7,667,882, compared with 5,505,543 shares (as adjusted for the 1-for-5 reverse split effected in May 2001) in the comparable prior period.
For the quarter ended June 30, 2001, revenues increased to $102,323,783 from $85,813,600 for the quarter ended June 30, 2000. Gross profits for the current quarter rose to a record $16,193,792 from $13,564,228 for the comparable 2000 quarter. Loss from continuing operations was $(62,268) in the second quarter of 2001 compared with income from continuing operations of $890,279 for the same quarter in 2000. There was no loss from discontinued operations in the second quarter of 2001 compared with a loss of $(381,964) from discontinued operations in the 2000 second quarter, because in the year 2000, provision had been made for the estimated additional cost related to those operations. Net loss was $(62,268) or $(0.01) per diluted share for the quarter ended June 30, 2001 versus net income of $508,315 or $0.09 per diluted share for the comparable quarter in the prior year. The average number of shares used in the computations (as adjusted for a 1-for-5 reverse split in May 2001) was 6,318,597 and 5,609,568 in the 2001 and 2000 quarters, respectively.
Bruce Bendell, Chairman and Chief Executive Officer of Major stated, "We have successfully divested the Company of all of its non-automotive operations. We have also grown the base of dealership operations and we are well positioned to take advantage of the efficiencies that this large base provides. Our name and reputation through our Major World branding is familiar throughout the New York metropolitan area and we expect to enhance our position as a leading automotive dealership group in our marketplace."
Richard L. Feinstein, Chief Financial Officer, commented: "The Company has made some significant acquisitions in the prior year. While growing our dealership revenues rapidly, we absorbed some redundant operating costs while we worked to integrate the newly-acquired automotive dealerships. We believe, however, that those growing pains are behind us and we are beginning to reap the benefits of higher volume coupled with operating efficiencies. We believe that we will continue to grow both our top and bottom lines as we maintain our concentrated focus on our automotive dealership operations."
The Major Automotive Companies is a holding company for the Major Automotive Group, a leading consolidator of automobile dealerships in the New York metropolitan area.
THE MAJOR AUTOMOTIVE COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Six Months Ended Three Months Ended
----------------- -----------------
June 30, June 30,
-------- --------
2001 2000 2001 2000
---- ---- ---- ----
(restated) (restated)
Sales $190,436,097 $153,574,382 $102,323,783 $85,813,600
Cost of sales 160,317,906 128,949,481 86,129,991 72,249,372
------------ ------------ ------------ -----------
Gross profit 30,118,191 24,624,901 16,193,792 13,564,228
Operating expenses 26,850,168 20,922,649 14,591,160 11,115,269
Interest expense 1,644,306 1,160,325 779,900 644,540
----------- ----------- ----------- ----------
Income before income
tax expense and loss
from discontinued
operations 1,623,717 2,541,927 822,732 1,804,419
Income tax expense 900,000 1,309,000 885,000 914,140
--------- --------- -------- ---------
Income from
continuing operations 723,717 1,232,927 (62,268) 890,279
Loss from discontinued
operations - (590,308) - (381,964)
--------- --------- -------- ---------
Net income $ 723,717 $ 642,619 $(62,268) $ 508,315
========= ========= ======== =========
Income per common
share - continuing
operations:
Basic $ 0.13 $ 0.25 $ (0.01) $ 0.17
Diluted $ 0.09 $ 0.23 $ (0.01) $ 0.16
========= ========= ======== =========
Loss per common share -
discontinued
operations:
Basic $ - $ (0.12) $ - $ (0.07)
Diluted $ - $ (0.11) $ - $ (0.07)
========= ========= ========= =========
Net income per common
share:
Basic $ 0.13 $ 0.13 $ (0.01) $ 0.10
Diluted $ 0.09 $ 0.12 $ (0.01) $ 0.09
========= ========= ========= =========
Average number of
shares used in
computation:
Basic 5,706,734 5,028,412 6,318,597 5,135,843
Diluted 7,667,882 5,505,543 6,318,597 5,609,568
========= ========= ========= =========