Universal Automotive Industries, Inc. Announces Record First Quarter Results
ALSIP, Ill., May 6 -- Universal Automotive Industries, Inc., today announced that first quarter 2002 net sales increased 10.1% to $17.6 million compared to the first quarter of 2001 sales of $16.0 million. The Company's core brake parts business experienced strong growth fueled by increased economic activity and expansion of the Company's friction business. Net income for the quarter was $152,000 ($.02 per share) as compared to a loss of $1,085,000 ($.15 per share) for the quarter ended March 31, 2001.
According to Arvin Scott, President and CEO:
"We are pleased that the initiatives put forth over the past 15 months are beginning to provide the anticipated positive results. The Company is financially stable and is well positioned to capitalize on the significant growth in the automotive aftermarket."
"We have worked hard to control costs, increase market share and continue to explore several new opportunities that we believe should allow the Company to continue yielding positive results in future."
The overall gross profit for the first quarter of 2002 was $3.2 million (18.2% of net sales) which, is up 29.5% as compared to gross profit of $2.5 million (15.5% of net sales) in the first quarter of 2001. The increase in gross profit is attributable to the increased sales and efficiencies at the Company's manufacturing facilities. Robert W. Zimmer, CFO, commented that, "Currently all facilities are running at increased efficiency levels, maintaining a strong production flow and backlog. The costs associated with the relocation of the Texas rotor facility to Missouri are behind us."
Selling, general and administrative expenses decreased 3.7% to $2.7 million (15.3% of net sales) for the quarter ended March 31, 2002 as compared to $2.8 million (17.5% of net sales) for the quarter ended March 31, 2001. Cost containment initiatives more than offset the increased selling expenses associated with the increased sales. In addition, lower interest rates on the Company's revolving line of credit coupled with the interest rate reduction associated with the restructuring and reduction of the Finova debt provided savings of $229,000 over the prior year's quarter.
The Company, headquartered in the Chicago area, specializes in distribution and manufacture of brake rotors and other brake parts, under its trademarks "UBP -- Universal Brake Parts," and "Ultimate" in the United States and Canada.
This news release contains certain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, which are intended to
be covered by safe harbors created hereby. Such forward-looking statements
involve known and unknown risks, uncertainties (including those risk factors
referenced in the Company's filings with the Securities and Exchange
Commission), and other factors that may cause the actual results, performance
or achievements of the Company to be materially different from any future
results, performance, or achievements of the Company expressed or implied by
such forward-looking statements.
Universal Automotive Industries, Inc
Summary of Financial Results
(000's) except per share data
Three Months Ended March 31,
2002 2001
Net Sales
Brake parts $16,263 $14,875
Commodities 1,381 1,153
17,644 16,028
Cost of Sales 14,428 13,544
Gross Profit $3,216 $2,484
% 18.2% 15.5%
Selling, general and administrative exp 2,699 2,802
Loss from discontinued operations 155
Income (loss) from operations $517 $(473)
Other expense
Interest expense 351 580
Other, net 14 22
Pretax income (loss) $152 $(1,075)
Income tax provision (benefit) 0 10
Net Income $152 $(1,085)
Earnings (loss) per share:
Basic $0.02 $(0.15)
Diluted $0.01 $(0.15)
Weighted average common shares outstanding
Basic 8,120,406 7,295,402
Common stock equivalents resulting from
warrants and options 4,045,345 -
Diluted 12,165,751 7,295,402