The Major Automotive Companies Reports First Half Results
LONG ISLAND CITY, N.Y.--Aug. 19, 2002--The Major Automotive Companies, Inc. :- Revenues Increase to a Record $194 Million from $190 Million -
- Gross Profits a Record $33.3 Million versus $30.1 million -
- Net Income $1.0 Million versus $723,000 -
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, 2002.
Revenues for the first six months of the year ended June 30, 2002 were $194,877,356 compared with $190,436,097 for the comparable 2001 period. Gross profits for the first half of 2002 rose to a record $33,332,620 from $30,118,191for the comparable 2001 period. Net income for the six months ended June 30, 2002 was $1,059,629, or $.11, per diluted share versus $723,717, or $.09 per diluted share for the six months ended June 30, 2001. The average number of shares used in the computation in the 2002 period was 9,336,852, compared with 7,667,882 shares in the comparable prior period.
For the quarter ended June 30, 2002, revenues increased to $103,531,846 from $102,323,783 for the quarter ended June 30, 2001. Gross profits for the current quarter rose to a record $17,522,392 from $16,193,792 for the comparable 2001 quarter. Net income was $509,596 or $0.05 per diluted share for the quarter ended June 30, 2002 versus net loss of $(62,268) or $(0.01) per diluted share for the comparable quarter in the prior year. The average number of shares used in the computations was 9,346,110 and 6,318,597 in the 2002 and 2001 quarters, respectively.
Bruce Bendell, Chairman and Chief Executive Officer of Major stated: "We have grown our dealership operations and are well positioned to take advantage of the efficiencies that this large operation 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: "We believe, that our investment in salespeople and advertising is providing us the benefits of increased public recognition and sales volume, which results, ultimately, in enhanced profitability. 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.
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-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. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Six Months Ended June 30, Three Months Ended June 30,
------------------------- -----------------------------
2002 2001 2002 2001
---- ---- ---- ----
Sales $194,877,356 $190,436,097 $103,531,846 $102,323,783
Cost of
sales 161,544,736 160,317,906 86,009,454 86,129,991
------------- ------------ ------------- -------------
Gross
profit 33,332,620 30,118,191 17,522,392 16,193,792
Operating
expenses 30,903,175 26,850,168 16,613,272 14,591,160
Interest expense
(income), net 537,816 1,644,306 (50,476) 779,900
------------- ------------ ------------ -------------
Income before
income tax
expense 1,891,629 1,623,717 959,596 822,732
Income tax
expense 832,000 900,000 450,000 885,000
------------- ------------ ------------ -------------
Net income
(loss) $1,059,629 $ 723,717 $ 509,596 $ (62,268)
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Income (loss)
per common share:
Basic $ 0.12 $ 0.13 $ 0.06 (0.01)
Diluted $ 0.11 $ 0.09 $ 0.05 (0.01)
========== ============= ============ ===========
Average number of
shares used in
computation:
Basic 8,747,873 5,706,734 9,263,607 6,318,597
Diluted 9,336,852 7,667,882 9,346,110 6,318,597
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