The Major Automotive Companies Reports First Quarter Results For 2003
LONG ISLAND CITY, N.Y.--May 21, 2003--The Major Automotive Companies, Inc. today reported its results for the quarter ended March 31, 2003.Revenues, at $91,145,991 for the quarter ended March 31, 2003, were relatively unchanged from the 2002 year's first quarter revenues of $91,345,510. Gross profits for the 2003 first quarter declined to $15,294,882 from $16,172,094 for the comparable 2002 quarter. Pre-tax loss was $(457,228) in the first quarter of 2003, compared with pre-tax income of $932,033 in the prior year's first quarter.
Net loss was $(477,228), or $(.05) per diluted share, in the first quarter of 2003, compared with net income of $550,033, or $.06 per diluted share, for the first quarter of 2002.
The average number of shares used in the computations of diluted earnings per share was 9,341,058 and 9,116,680 in the 2003 and 2002 quarters, respectively.
Bruce Bendell, President, Chief Executive Officer and Acting Chief Financial Officer of The Major Automotive Companies, Inc., said, "We had very severe and prolonged winter weather conditions during the first quarter of 2003. That, together, with consumer reluctance, in large part attributable to the uncertainties related to the anticipated war with Iraq, had a strong negative impact on our ability to grow our business in this period. Despite, these adverse conditions, however, we believe that our efforts have enabled us to maintain our sales levels and customer base. Our dedicated staff and our Company's management are taking the prudent measures necessary to limit our costs and generate future sales. We are confident that, if the market turns, we will be in a strong position to return to our growth plan."
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)
2003 2002
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Sales $91,145,991 $91,345,510
Cost of sales 75,851,109 75,173,416
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Gross profit 15,294,882 16,172,094
Operating expenses 15,451,285 14,868,426
Interest expense, net of interest income 300,825 371,635
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Income (loss) before income tax expense (457,228) 932,033
Income tax expense 20,000 382,000
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Net income (loss) $ (477,228) $ 550,033
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Net income (loss) per common share
Basic $ (0.05) $ 0.07
Diluted $ (0.05) $ 0.06
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Average number of shares used in computation:
Basic 9,341,058 8,226,406
Diluted 9,341,058 9,116,680
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