The Major Automotive Companies Reports Nine Months Results; Revenues Increase to a Record $306 Million from $281 Million
LONG ISLAND CITY, N.Y.--Nov. 20, 2002--The Major Automotive Companies, Inc. --Gross Profits a Record $51.6 Million versus $47.3 Million;
Net Income $2.2 Million versus $1.5 Million;
Application for Nasdaq SmallCap Submitted
The Major Automotive Companies, Inc. today reported record revenues and gross profits for the nine months ended September 30, 2002.
Revenues for the nine months of ended September 30, 2002 were $306,686,431 compared with $281,685,839 for the comparable 2001 period. Gross profits for the first three quarters of 2002 increased to $51,631,695 from $47,252,988 for the comparable period in 2001. Income from continuing operations for the first nine months of 2002 was $2,476,400 ($.26 per diluted share) compared with $1,520,933 ($.20 per diluted share) for the 2001 period. Loss from discontinued operations in the first nine months of 2002 was $(206,000) (($.02) per diluted share) compared with no 2001 loss from discontinued operations in the comparable period, because expenses related to discontinued operations in the 2002 nine-month period exceeded the provision that had been made for the estimated additional cost related to those operations. Net income for the first nine months of 2002 was $2,270,400 ($.24 per diluted share) compared with $1,520,933 ($.20 per diluted share) for the 2001 period. The average number of shares used in the computation in the 2002 period was 9,339,341, compared with 7,663,707 shares in the comparable prior period.
For the quarter ended September 30, 2002, revenues increased to $111,809,075 from $91,249,742 for the quarter ended September 30, 2001. Gross profits for the current quarter rose to $17,848,892 from $16,359,910 for the comparable 2001 quarter. Income from continuing operations was $1,416,771 ($.15 per diluted share) in the third quarter of 2002 compared with income from continuing operations of $797,216 ($.10 per diluted share) for the same quarter in 2001. Loss from discontinued operations in the third quarter of 2002 was $(206,000) (($.02) per diluted share) compared with no third quarter 2001 loss from discontinued operations, because expenses related to discontinued operations in the 2002 three-month period exceeded the provision that had been made for the estimated additional cost related to those operations. Net income was $1,210,771 or $.13 per diluted share for the quarter ended September 30, 2002 versus net income of $797,216 or $.10 per diluted share for the comparable quarter in the prior year. The average number of shares used in the computation was 9,344,175 and 7,637,074 in the 2002 and 2001 quarters, respectively.
Separately, the Company announced that it has not achieved compliance with Nasdaq Marketplace Rule 4450(a)(5) relating to minimum bid price per share ($1.00) that is required for continued listing on the Nasdaq National Market. The Company has applied, today, to transfer its securities to the Nasdaq SmallCap Market, which, if such application is accepted, will grant the Company an extended grace period, until February 18, 2003 to demonstrate compliance with the $1.00 minimum bid requirement.
Bruce Bendell, Chairman, Chief Executive Officer, President and Acting Chief Financial Officer of Major stated: "The record nine-month and three-month results in 2002, have demonstrated that the steps we have taken to grow our existing successful dealerships, while closely watching our costs, have been effective. We will continue our efforts as one of the leading dealership groups in the New York metropolitan area."
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)
Nine Months Ended Three Months Ended
September 30, September 30,
--------------------------- ------------------------------
2002 2001 2002 2001
---- ---- ---- ----
Sales $306,686,431 $281,685,839 $111,809,075 $ 91,249,742
Cost of
sales 255,054,736 234,432,851 93,960,183 74,889,832
------------ ------------ ------------ -------------
Gross
profit 51,631,695 47,252,988 17,848,892 16,359,910
------------ ------------ ------------ -------------
Operating
expenses 47,703,797 45,012,776 16,245,626 16,191,412
Interest
expense 646,498 669,279 213,495 221,282
------------ ------------ ------------ -------------
48,350,295 45,682,055 16,459,121 16,412,694
------------ ------------ ------------ -------------
Income (loss)
before income
taxes and
loss from
discontinued
operations 3,281,400 1,570,933 1,389,771 (52,784)
Income tax
expense
(benefit) 805,000 50,000 (27,000) (850,000)
------------ ------------ ------------ -------------
Income from
continuing
operations 2,476,400 1,520,933 1,416,771 797,216
(Loss) from
discontinued
operations
(net of
income tax
benefits) (206,000) - (206,000) -
---------- ---------- ---------- ----------
Net income $2,270,400 $1,520,933 $1,210,771 $797,216
========== ========== ========== ==========
Income per
common share -
continuing
operations
Basic $ 0.27 $ 0.24 $ 0.15 $ 0.11
Diluted $ 0.26 $ 0.20 $ 0.15 $ 0.10
========= ========== ========== ==========
(Loss) per
common share -
discontinued
operations
Basic $ (0.02) $ - $ (0.02) $ -
Diluted $ (0.02) $ - $ (0.02) $ -
========= ========== ========== ==========
Net income per
common share:
Basic $ 0.25 $ 0.24 $ 0.13 $ 0.11
Diluted $ 0.24 $ 0.20 $ 0.13 $ 0.10
========= ========== ========== ==========
Average number
of shares used
in computation:
Basic 8,947,985 6,244,355 9,341,680 7,302,066
Diluted 9,339,341 7,663,707 9,344,175 7,637,074
========= ========== ========== ==========