The Major Automotive Companies Reports Year-End Results; Gross Profits Increase in 2002 to a Record $67.2 Million from $63.2 Million in 2001
LONG ISLAND CITY, N.Y.--April 16, 2003--The Major Automotive Companies, Inc.| -- | Revenue Grows to $397 million |
| -- | Net Loss $(290,000) vs. Net Profit of $2.7 Million |
The Major Automotive Companies, Inc. today reported record revenues and gross profits and net profits for the year ended December 31, 2002.
For the year ended December 31, 2002, revenues increased to $397,947,494 compared with $375,114,505 for the year ended December 31, 2001. Gross profits for the year rose to a record $67,175,175 from $63,248,948 for the 2001 year. Income from continuing operations, before tax and discontinued operations was $105,228 in the year 2002, compared with $1,798,524 for 2001. Loss from continuing operations was $(84,772) in the year 2002, compared with income from continuing operations of $2,089,524 for 2001.
There was a loss from discontinued operations in 2002 of $(206,000), net of tax, compared with income from discontinued operations of $590,000, related to tax benefits, in 2001. Net loss in 2002 was $(290,772) or $(0.03) per diluted share versus a net income of $2,679,524 or $0.31 per diluted share for the prior year. The average number of shares used in the computations were 8,947,332 and 8,662,976 in the 2002 and 2001 years, respectively.
Bruce Bendell, Chairman, President, Chief Executive Officer and Acting Chief Financial Officer of Major said, "We have been successful in continuing our revenue growth and our increasing gross profit even as we have closed a number of our marginal dealerships. Our gross profit percentages remain strong - well above industry averages. We have, however, experienced a downturn in the fourth quarter of 2002, which, we believe is the result of locally bad weather and uncertainty on the part of buyers. In addition, we incurred substantial one-time litigation costs as we wind down litigation associated with our former activities. It is our goal for 2003, to continue the growth of our revenues from sales and service and also to reduce and eliminate redundant and non-productive expenses as we build on our recognition as a leading automotive dealership group in the New York metropolitan area."
The Major Automotive Companies is a leading consolidator of automotive dealerships in the New York Metropolitan area. For additional information, visit the Company's website at http://www.majorauto.com/.
THE MAJOR AUTOMOTIVE COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Year ended December 31, 2002 2001 2000
----------------------- ------------ ------------ ------------
Sales $397,947,494 $375,114,505 $322,142,231
Cost of sales 330,772,319 311,865,557 270,874,536
------------ ------------ ------------
Gross profit 67,175,175 63,248,948 51,267,695
Operating expenses 64,760,121 59,222,739 46,580,842
Litigation costs 1,348,000 1,085,893 199,802
Interest expense, net of
interest income 961,826 1,141,792 1,800,804
------------ ------------ ------------
Income (loss) before
income tax (benefit) and
income (loss) from
discontinued operations 105,228 1,798,524 2,686,247
Income tax expense (benefit) 190,000 (291,000) 1,384,000
------------ ------------ ------------
Income from continuing
operations (84,772) 2,089,524 1,302,247
Income (loss) from
discontinued operations
(net of income tax benefit) (206,000) 590,000 (22,427,322)
Net income (loss) $ (290,772) $ 2,679,524 $(21,125,075)
============ ============ ============
Income per common share -
continuing operations:
Basic $ (0.01) $ 0.32 $ 0.26
Diluted $ (0.01) $ 0.24 $ 0.19
============ ============ ============
Income (loss) per common
share - discontinued
operations:
Basic $ (0.02) $ 0.09 $ (4.40)
Diluted $ (0.02) $ 0.07 $ (4.40)
============ ============ ============
Net income (loss) per common
share:
Basic $ (0.03) $ 0.41 $ (4.14)
Diluted $ (0.03) $ 0.31 $ (4.14)
============ ============ ============
Average number of shares
used in computation:
Basic 8,947,332 6,558,356 5,101,829
Diluted 8,947,332 8,662,976 6,791,104
============ ============ ============