UnitedAuto Reports Record First Quarter; Revenues Increase 24%; Same-Store Retail Revenues Increase 11%
BLOOMFIELD HILLS, Mich.--April 27, 2004--| Net Income Increases 47% to $20.2 Million Earnings Per Share Increases 41% to $0.48 Per Share |
United Auto Group, Inc. , a FORTUNE 500 automotive specialty retailer, today announced record results for the first quarter 2004, the 20th consecutive quarter of reporting record results.
The record results were fueled by an 11.0% increase in same-store retail revenues resulting from strong performance in each of the Company's product lines. Same-store highlights include:
-- New vehicle retail revenue +12.1%
-- Used vehicle retail revenue +7.0%
-- Service & parts revenue +14.5%
-- Finance & insurance revenue +6.5%
Total revenue increased to a record $2.4 billion during the quarter. Income from continuing operations was $20.8 million and related earnings per share were $0.49, representing increases of 22.2% and 16.7%, respectively. Net income for the quarter increased to $20.2 million, or $0.48 per share, from $13.7 million, or $0.34 per share, in the prior year. Prior year results included the effect of a $5.1 million ($3.1 million after-tax), or $0.07 per share, charge relating to the cumulative effect of a change in accounting principle.
Chairman Roger Penske commented, "UnitedAuto delivered another strong quarter of operating results and solidified its capital structure through a $119 million sale of common stock to Mitsui & Co. in March 2004. Due in large part to that transaction, our debt to total capital was 37% at March 31, down from 44% at the end of December." Commenting further Penske said, "Our industry-leading same-store growth is the direct result of our strong brand mix and our continued investment in facility expansion. I'm particularly pleased that our service and parts gross margin increased 200 basis points over the prior year quarter. We currently estimate earnings per share in the range of $2.21-$2.31 per share for the full year, which is based on an average 45.6 million shares outstanding. For the second quarter, we expect earnings per share in the range of $0.61-$0.65 per share, based on an average 46.6 million shares outstanding."
UnitedAuto will host a conference call discussing financial results relating to first quarter 2004 on Tuesday, April 27, 2004 at 9 a.m. ET. To listen to the conference call, participants must dial (888) 428-4474 (International, please dial (651) 291-0618). The call will also be simultaneously broadcast live over the Internet through the UnitedAuto website at www.unitedauto.com.
About UnitedAuto
UnitedAuto, which has pursued a strategy based on internal growth from its existing dealerships, as well as from strategic acquisitions, operates 136 franchises in the United States and 83 franchises internationally, primarily in the United Kingdom. UnitedAuto dealerships sell new and used vehicles, and market a complete line of aftermarket automotive products and services.
UNITED AUTO GROUP, INC.
Consolidated Statements of Income
(Amounts In Thousands, Except Per Share Data)
(Unaudited)
First Quarter
-------------------------
2004 2003
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New Vehicles $1,316,370 $1,076,565
Used Vehicles 524,953 424,553
Finance and Insurance 53,043 46,558
Service and Parts 259,483 206,328
Fleet 32,523 25,894
Wholesale 169,940 115,085
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Total Revenues 2,356,312 1,894,983
Cost of Sales 2,012,064 1,619,595
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Gross Profit 344,248 275,388
SG&A Expenses 276,915 220,632
Depreciation and Amortization 8,814 7,000
-------------------------
Operating Income 58,519 47,756
Floor Plan Interest Expense (13,323) (8,736)
Other Interest Expense (10,765) (10,282)
-------------------------
Income from Continuing Operations Before
Minority
Interests and Income Tax Provision 34,431 28,738
Minority Interests (310) (393)
Income Tax Provision (13,358) (11,353)
-------------------------
Income from Continuing Operations 20,763 16,992
Income (loss) from Discontinued Operations,
Net of Tax (559) (201)
-------------------------
Income Before Cumulative Effect of
Accounting Change 20,204 16,791
Cumulative Effect of Accounting Change (a) -- (3,058)
-------------------------
Net Income $ 20,204 $ 13,733
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Income from Continuing Operations
Per Diluted Share $ 0.49 $ 0.42
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Diluted EPS before Cumulative Effect
of Accounting Change $ 0.48 $ 0.41
=========================
Cumulative Effect of Accounting Change
on Diluted EPS $ -- $ (0.07)
=========================
Diluted EPS $ 0.48 $ 0.34
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Diluted Weighted Average Shares Outstanding 42,521 40,920
=========================
(a) Represents the cumulative accou nting change resulting from the
adoption of EITF 02-16, "Accounting by a Customer (including a
Reseller) for Certain Consideration Received from a Vendor."
UNITED AUTO GROUP, INC.
Consolidated Condensed Balance Sheets
(Amounts In Thousands)
(Unaudited)
3/31/04 12/31/03
-------------------------
Assets
Cash and Cash Equivalents $ 16,119 $ 13,439
Accounts Receivable, Net 358,372 342,446
Inventories 1,281,574 1,166,756
Other Current Assets 44,057 43,090
-------------------------
Total Current Assets 1,700,122 1,565,731
Property and Equipment, Net 408,455 368,504
Intangibles 1,093,196 1,085,034
Other Assets 88,360 89,968
Assets of Discontinued Operations 17,527 27,944
-------------------------
Total Assets $3,307,660 $3,137,181
=========================
Liabilities and Stockholders' Equity
Floor Plan Notes Payable $1,198,947 $1,122,065
Accounts Payable and Accrued Expenses 377,329 347,098
Current Portion Long-Term Debt 1,175 8,574
-------------------------
Total Current Liabilities 1,577,451 1,477,737
Long-Term Debt 571,924 643,145
Other Long-Term Liabilities 173,327 168,111
Liabilities of Discontinued Operations 11,736 19,776
-------------------------
Total Liabilities 2,334,438 2,308,769
Stockholders' Equity 973,222 828,412
-------------------------
Total Liabilities and
Stockholders' Equity $3,307,660 $3,137,181
=========================
UNITED AUTO GROUP, INC.
Selected Data
First Quarter
-------------------------
2004 2003
-------------------------
Units
New Retail Units 42,121 37,373
Used Retail Units 22,658 20,469
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Total Retail Units 64,779 57,842
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Same-Store Retail Revenue
New Vehicles $1,196,205 $1,067,378
Used Vehicles 448,038 418,624
Finance and Insurance 49,071 46,077
Service and Parts 233,571 203,920
-------------------------
Total Same-Store Retail Revenue $1,926,885 $1,735,999
=========================
Same-Store Retail Revenue Growth
New Vehicles 12.1% 3.6%
Used Vehicles 7.0% 5.8%
Finance and Insurance 6.5% 14.8%
Service and Parts 14.5% 8.4%
Revenue Mix
New Vehicles 55.9% 56.8%
Used Vehicles 22.3% 22.4%
Finance and Insurance 2.3% 2.4%
Service and Parts 11.0% 10.9%
Fleet 1.3% 1.4%
Wholesale 7.2% 6.1%
Retail Gross Margin - by Product
New Vehicles 8.6% 8.4%
Used Vehicles 9.0% 9.3%
Finance and Insurance 100.0% 100.0%
Service and Parts 50.0% 48.0%
Gross Profit per Transaction
New Vehicles $ 2,673 $ 2,426
Used Vehicles 2,097 1,926
Finance and Insurance 819 805
UNITED AUTO GROUP, INC.
Selected Data (Continued)
First Quarter
-------------------------
2004 2003
-------------------------
Brand Mix:
Toyota/Lexus 22% 22%
BMW 15% 13%
Mercedes 11% 9%
Honda/Acura 10% 12%
General Motors 9% 11%
Ford Premier Group 9% 8%
Chrysler 6% 8%
Nissan/Infiniti 4% 4%
Ford 4% 5%
Other 10% 8%
Debt to Total Capital Ratio 37% 50%
Adjusted EBITDA (a) $ 54,010 $ 46,020
Rent Expense $ 23,664 $ 19,370
(a) Adjusted EBITDA is defined as income from continuing operations
before minority interests, income tax provision, other interest
expense, depreciation and amortization. While Adjusted EBITDA
should not be construed as a substitute for income from continuing
operations or as a better measure of liquidity than cash flows
from operating activities, each of which is determined in
accordance with U.S. GAAP, it is included in this press release to
provide additional information regarding the amount of cash our
business is generating. This measure may not be comparable to
similarly titled measures reported by other companies. Following
is a reconciliation of income from continuing operations before
minority interests and income tax provision and Adjusted EBITDA:
First Quarter
-------------------------
2004 2003
-------------------------
Income from continuing operations
before minority interests and income
tax provision $ 34.4 $ 28.7
Other interest expense 10.8 10.3
Depreciation and amortization 8.8 7.0
-------------------------
Adjusted EBITDA $ 54.0 $ 46.0
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