The Major Automotive Companies Reports First Half Results
LONG ISLAND CITY, N.Y.--Aug. 1, 20035, 2003--The Major Automotive Companies, Inc. today reported its results for the first half of 2003.Revenues for the first six months of the year ended June 30, 2003 declined to $190,018,727 from $194,877,356 for the comparable 2002 period. Gross profits for the first half of 2003 decreased to $32,199,951 from $34,250,723 for the corresponding 2002 period. Net income for the six months ended June 30, 2003 was $123,116, or $.01 per diluted share, versus $1,059,629, or $.11 per diluted share, for the six months ended June 30, 2002. The average number of shares used in the computation in the 2003 period was 9,401,284, compared with 9,336,852 shares in the corresponding prior period.
For the quarter ended June 30, 2003, revenues were $98,872,736 compared with $103,531,846 for the quarter ended June 30, 2002. Gross profits for the current quarter were $16,905,069 compared with $18,078,629 for the second quarter in 2002. Net income was $600,344, or $0.06 per diluted share, for the quarter ended June 30, 2003 versus net income of $509,596, or $0.05 per diluted share, for the comparable quarter in the prior year. The average number of shares used in the computations was 9,458,704 and 9,346,110 in the 2003 and 2002 quarters, respectively.
Bruce Bendell, Chief Executive Officer, President and Acting Chief Financial Officer of Major stated: "Although the automobile business, in general, and Major has been adversely affected by the sluggish economy in the second quarter of 2003, we have made substantial improvements from our first quarter. We believe that our strong name recognition and our reputation will help us to maintain this trend throughout the remainder of the year."
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, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, 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)
For the Six Months Ended For the Three Months Ended
June 30, June 30,
--------------------------- --------------------------
2003 2002 2003 2002
------------- ------------- ------------ -------------
Sales $190,018,727 $194,877,356 $98,872,736 $103,531,846
Cost of sales 157,818,776 160,626,633 81,967,667 85,453,217
------------- ------------- ------------ -------------
Gross profit 32,199,951 34,250,723 16,905,069 18,078,629
Operating
expenses 31,739,435 31,900,372 16,146,911 16,891,946
Interest
expense, net of
interest income 310,400 458,722 150,814 227,087
------------- ------------- ------------ -------------
Income before
income tax
(benefit) 150,116 1,891,629 607,344 959,596
Income tax
expense
(benefit) 27,000 832,000 7,000 450,000
------------- ------------- ------------ -------------
Net income $123,116 $1,059,629 $600,344 $509,596
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Net income per
common share
Basic $0.01 $0.12 $0.06 $0.06
Diluted $0.01 $0.11 $0.06 $0.05
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Average number
of shares used
in computation:
Basic 9,398,454 8,747,873 9,455,220 9,263,607
Diluted 9,401,284 9,336,852 9,458,704 9,346,110
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