The Major Automotive Companies Reports Nine Months Results
LONG ISLAND CITY, N.Y.--Nov. 1, 20037, 2003--The Major Automotive Companies, Inc. today reported its results for the first nine months of 2003.Revenues for the nine months ended September 30, 2003 declined to $293,976,023 from $306,686,431 for the comparable 2002 period. Gross profits for the first nine months of 2003 decreased to $50,434,049 from $52,632,595 for the corresponding 2002 period. There was no loss from discontinued operations in 2003. Loss from discontinued operations in the first nine months of 2002 was $(206,000) (($.02) per diluted share) because expenses related to discontinued operations in the 2002 nine-month period exceeded the provision that had been made for the estimated additional costs related to those operations. Net income for the nine months ended September 30, 2003 was $934,728, or $.10 per diluted share, versus $2,270,400 or $.24 per diluted share, for the nine months ended September 30, 2002. The average number of shares used in the computation in the 2003 period was 9,427,048, compared with 9,339,341 shares in the corresponding prior period.
For the quarter ended September 30, 2003, revenues were $103,957,296 compared with $111,809,075 for the quarter ended September 30, 2002. Gross profits for the current quarter were $18,234,098 compared with $18,381,872 for the third quarter in 2002. Loss from discontinued operations in the first nine months of 2002 was $(206,000) (($.02) per diluted share) because expenses related to discontinued operations in the 2002 nine-month period exceeded the provision that had been made for the estimated additional costs related to those operations. Net income was $811,612, or $0.09 per diluted share, for the quarter ended September 30, 2003 versus net income of $1,210,771 or $0.13 per diluted share, for the comparable quarter in the prior year. The average number of shares used in the computations was 9,477,741 and 9,344,175 in the 2003 and 2002 quarters, respectively.
Bruce Bendell, Chief Executive Officer, President and Acting Chief Financial Officer of Major stated: "We are pleased that our third quarter results show the positive effects of the initiatives that we have taken to build back our gross profits. We believe that our efforts, combined with a rebounding economy, will help us maintain this trend for the rest 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.
THE MAJOR AUTOMOTIVE COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
For the Nine months Ended For the Three Months Ended
September 30, September 30,
--------------------------- ---------------------------
2003 2002 2003 2002
------------- ------------- ------------- -------------
Sales $293,976,023 $306,686,431 $103,957,296 $111,809,075
Cost of sales 243,541,974 254,053,836 85,723,198 93,427,203
------------- -----------------------------------------
Gross profit 50,434,049 52,632,595 18,234,098 18,381,872
Operating
expenses 48,818,281 48,704,697 17,078,846 16,804,325
Interest
expense, net
of interest
income 588,040 646,498 277,640 187,776
------------- -----------------------------------------
Income before
income taxes
and Loss from
discontinued
operations 1,027,728 3,281,400 877,612 1,389,771
Income tax
expense
(benefit) 93,000 805,000 66,000 (27,000)
------------- ------------- ------------- -------------
Income from
continuing
operations 934,728 2,476,400 811,612 1,416,771
Loss from
discontinued
operations
(net of income
tax benefits
of $138,000) - 206,000 - 206,000
------------- ------------- ------------- -------------
Net income $934,728 $2,270,400 $811,612 $1,210,771
============= ============= ============= =============
Income per
common share -
continuing
operations
Basic $0.10 $0.27 $0.09 $0.15
Diluted $0.10 $0.26 $0.09 $0.15
Loss per common
share -
discontinued
operations
Basic - $0.02 - $0.02
Diluted - $0.02 - $0.02
Net income per
common share
Basic $0.10 $0.25 $0.09 $0.13
Diluted $0.10 $0.24 $0.09 $0.13
============= ============= ============= =============
Average number
of shares used
in computation:
Basic 9,424,201 8,947,985 9,474,856 9,341,680
Diluted 9,427,048 9,339,341 9,477,741 9,344,175
============= ============= ============= =============