Auto Dealership Group cars4U Q2 pre-tax profit jumps $1.7 million over prior year

TORONTO, April 24 /CNW/ - cars4U.com Ltd.today announced its financial results for the second quarter of fiscal 2002. Earnings before income taxes were $600,000 in the second quarter of 2002, compared to a loss of $1.1 million in the second quarter of 2001. Part of the 2001 loss was due to the write-off of $900,000 in deferred operating costs and Web site development costs in the quarter. With the write-off taken into account, second quarter 2002 earnings are still $800,000 higher than the previous year.

"We've got great news on both profit and revenue fronts," said cars4U.com's President and CEO Barry Shafran. "Our results look especially good given that this is typically the weakest quarter of the year in the car business."

Revenues for the three months ended February 28, 2002 totalled $18.8 million, compared to $17.7 million reported for the same period last year, an increase of 6.2%. This increase is more significant when revenues from the formerly held Trenton Chrysler dealership are accounted for. Sold in early fiscal 2002, Trenton Chrysler contributed $2.1 million in revenues during the same quarter last year. With that taken into account, same store sales for the second quarter increased by more than 20% over the prior year.

"We're continuing with our strategy to grow through acquisition to become Canada's preeminent automotive retailer," added Shafran.

Earnings before income taxes for the six months ended February 28, 2002 were $1.6 million compared to a net loss before income taxes of $1.5 million in the same period last year. Even with the disposal of the Trenton Chrysler dealership early in the first quarter of 2002, revenues for the six months totalled $41.2 million, equivalent to the same period last year. The Trenton Chrysler dealership was responsible for $5.2 million in revenues in the first six months of 2001.

Basic and fully diluted earnings, after-tax, for the six months were $0.05 per share, compared to a basic and fully diluted loss per share of $0.04 in fiscal 2001.

About cars4U.com Ltd. - With 30 years in automotive retailing, cars4U.com Ltd. offers its clients a full range of new and used automobiles for lease or purchase directly from its new car dealerships, through its long standing Toronto-based leasing and wholesale car companies or through its eDealer at www.cars4U.com. cars4U.com Ltd. is traded on The Toronto Stock Exchange under the symbol CFU. For more information visit www.cars4U.com or www.cars4Ultd.com.