Major Automotive Companies Reports Year-End Results
LONG ISLAND CITY, N.Y.--April 17, 2002--The Major Automotive Companies, Inc. today reported record revenues, gross profits and net profits for the year ended December 31, 2001.
For the year ended December 31, 2001, revenues increased to $375,114,505 compared to $322,142,231 for the year ended December 31, 2000. Gross profits for the year rose to a record $61,905,271 from $49,895,596 for the 2000 year. Income from continuing operations was $2,089,524 in the year 2001, compared with $1,302,247 for 2000.
There was income from discontinued operations in 2001 of $590,000 related to tax benefits compared with a loss of $(22,427,322) from discontinued operations in 2000. Net income in 2001 was $2,679,524 or $0.31 per diluted share versus a net loss of $(21,125,075) or $(4.14) per diluted share for the prior year. The average number of shares used in the computations was 8,662,976 and 5,101,829 in the 2001 and 2000 years, respectively.
Bruce Bendell, Chairman, President and Chief Executive Officer of Major said, "We completed our first full year solely as an automotive dealership group. Our record setting results demonstrate the effect of this focus. The substantial gains we made in revenues, gross profits, operating income and net income, to record setting levels, are all reflective of our efforts to build on our past successes. It is our goal for 2002, to continue the growth of our sales, service, efficiency and profitability as we seek to strengthen our position as a leading automotive dealership group in the New York metropolitan area."
Richard L. Feinstein, Chief Financial Officer, noted: "The record financial results for 2001 came about, in part, from our concentration on the areas in which we already excel and, in part, from the initiatives that were made in sales, marketing and cost containment. The significant increases in revenues and gross profits are evidence of the success of those inroads. We believe the market will recognize these results and appreciate our dedication and our shareholders will benefit from that recognition."
The Major Automotive Companies is a leading consolidator of automotive dealerships in the New York Metropolitan area. For additional information, visit the Company's website at http://www.majorauto.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 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.
THE MAJOR AUTOMOTIVE COMPANIES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
Year ended December 31, 2001 2000
Revenues:
Sales $375,114,505 $322,142,231
Cost of sales 313,209,234 272,246,635
Gross profit 61,905,271 49,895,596
Operating expenses 56,516,246 44,348,909
Interest expense, net of interest
income 2,504,608 2,660,638
Income before litigation
costs, income tax expense and
loss from discontinued operations 2,884,417 2,686,049
Litigation costs 1,085,893 199,802
Income before income tax expense
(benefit) and gain (loss) from
discontinued operations 1,798,524 2,686,247
Income tax expense (benefit) (291,000) 1,384,000
Income from continuing operations 2,089,524 1,302,247
Income (loss) from discontinued
operations (net of income tax benefit) 590,000 (22,427,322)
Net income (loss) $2,679,524 $(21,125,075)
Income per common share -
continuing operations:
Basic $0.32 $0.26
Diluted $0.24 $0.19
Income (loss) per common share -
discontinued operations:
Basic $0.09 $(4.40)
Diluted $0.07 $(3.30)
Net income (loss) per common share:
Basic $0.41 $(4.14)
Diluted $0.31 $(4.14)
Average number of shares used in
computation:
Basic 6,558,356 5,101,829
Diluted 8,662,976 6,791,104