The Major Automotive Companies Reports Year-End Results
LONG ISLAND CITY, N.Y.--April 14, 2004--The Major Automotive Companies, Inc.-- Revenue $380 million in 2003 compared with $398 million in 2002
-- Gross Profits in 2003 $60.6 Million from $64.1 Million in 2002
-- Net Loss in 2003 of $1.1 million vs. Net Loss in 2002 of $290,000
The Major Automotive Companies, Inc. today reported its results for the year ended December 31, 2003.
For the year ended December 31, 2003, revenues decreased to $380,298,852 compared with $397,947,494 for the year ended December 31, 2002. Gross profits for the year 2003 declined to $60,643,692 in 2003 from $64,138,108 for the 2002 year. Loss from continuing operations was $(1,130,264) in the year 2003, compared with loss from continuing operations of $(84,772) for 2002.
There was no loss from discontinued operations in 2003 compared with loss from discontinued operations of $(206,000) in 2002. Net loss in 2003 was $(1,130,264) or $(0.12) per diluted share versus a net loss of $(290,772) or $(0.03) per diluted share for the prior year. The average number of shares used in the computations was 9,436,969 and 8,947,332 in the 2003 and 2002 years, respectively.
Bruce Bendell, Chairman, President, Chief Executive Officer and Acting Chief Financial Officer of Major said, "We have been adversely impacted this year primarily as a result of several factors during the first half of 2003. We believe that both the negative effect on consumer spending related to the war with Iraq and the abnormally severe winter we experienced in our operating area, combined to reduce sales, gross profits and earnings during that period. While our performance throughout the balance of the year showed better results, we were not able to overcome our first half declines. We believe, however, that we have taken the prudent steps in attempting to reduce discretionary spending, close marginal dealerships and make appropriate expenditures in advertising which will enable us to take advantage of positive changes in market conditions. Our plan is for 2004 to show a solid improvement from our 2003 results."
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 Major Automotive Companies, Inc. and Subsidiaries
Consolidated Statements of Operations
Year ended December 31, 2003 2002 2001
------------ ------------ ------------
Sales $380,298,852 $397,947,494 $375,114,505
Cost of sales 319,655,160 333,809,386 314,506,772
------------ ------------ ------------
Gross profit 60,643,692 64,138,108 60,607,733
Operating expenses 60,912,306 61,723,054 56,581,524
Litigation costs - 1,348,000 1,085,893
Interest expense, net of
interest income 779,732 961,826 1,141,792
------------ ------------ ------------
Income (loss) before income
taxes and
income (loss) from
discontinued
operations (1,048,346) 105,228 1,798,524
Income tax expense (benefit) 81,918 190,000 (291,000)
------------ ------------ ------------
Income (loss) from
continuing operations (1,130,264) (84,772) 2,089,524
Income (loss) from
discontinued operations
(net of income tax benefit) - (206,000) 590,000
------------ ------------ ------------
Net income (loss) $ (1,130,264) $ (290,772) $ 2,679,524
============ ============ ============
Income (loss) per common
share -
continuing operations
Basic $ (0.12) $ (0.01) $ 0.32
Diluted $ (0.12) $ (0.01) $ 0.24
============ ============ ============
Income (loss) per common
share -
discontinued operations:
Basic $ - $ (0.02) $ 0.09
Diluted $ - $ (0.02) $ 0.07
============ ============ ============
Net income (loss) per common
share:
Basic $ (0.12) $ (0.03) $ 0.41
Diluted $ (0.12) $ (0.03) $ 0.31
============ ============ ============
Average number of shares
used in computation:
Basic 9,436,969 8,947,332 6,558,356
Diluted 9,436,969 8,947,332 8,662,976
============ ============ ============