The Major Automotive Companies Reports First Quarter Results
LONG ISLAND CITY, N.Y.--May 20, 2002--The Major Automotive Companies, Inc. --| -- | Gross Profits Increase to a Record $15.8 Million from $13.9 Million |
| -- | Pre-Tax Income $932,000 versus $801,000 |
The Major Automotive Companies, Inc. today reported record gross profits for the quarter ended March 31, 2002.
For the quarter ended March 31, 2002, revenues increased to $91,345,510 compared with $88,112,314 for the quarter ended March 31, 2001. Gross profits for the 2002 first quarter rose to a record $15,810,228 from $13,924,399 for the comparable 2001 quarter. Pre-tax income increased to $932,033 in the first quarter of 2002 from $800,985 in the prior year's comparable quarter.
Net income was $550,033, or $.06 per diluted share, in the first quarter of 2002, compared with $785,985, or $.11 per diluted share, for the first quarter of 2001.
The average number of shares used in the computations of diluted earnings per share was 9,116,680 and 6,890,450 in the 2002 and 2001 quarters, respectively.
Bruce Bendell, Chairman, Chief Executive Officer and President of The Major Automotive Companies, Inc., said, "We are proud of the results we have shown this quarter. The Major dealerships have again demonstrated that our focus on automotive operations helps us continue our growth. We are working diligently to see that our positive results will continue and we believe that the marketplace will reward our success."
Richard L. Feinstein, Chief Financial Officer, noted: "In addition to our record setting results this quarter, we have put in place new sources for the bulk of our vehicle inventory financing. We believe that these new relationships will provide additional impetus to help us reach our goals."
The Major Automotive Companies, Inc. is a holding company for the Major Automotive Group, a leading consolidator of automotive dealerships in the New York Metropolitan area.
For additional information, visit the Company's website at http://www.majorworld.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 and Exchange Act of 1934 contained herein, should be reviewed in conjunction with the Company's annual report on Form 10-KSB 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. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31,
(Unaudited)
2002 2001
---- ----
Sales $ 91,345,510 $ 88,112,314
Cost of sales 75,535,282 74,187,915
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Gross profit 15,810,228 13,924,399
Operating expenses 14,289,903 12,259,008
Interest expense 588,292 864,406
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Income before income tax expense 932,033 800,985
Income tax expense 382,000 15,000
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Net income $ 550,033 $ 785,985
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Net income per common share:
Basic $ 0.07 $ 0.15
Diluted $ 0.06 $ 0.11
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Average number of shares used in
computation:
Basic 8,226,406 5,088,072
Diluted 9,116,680 6,890,450
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