Hometown Auto Retailers Announces First Quarter 2004 Results
WATERTOWN, Conn.--May 1, 20043, 2004--Hometown Auto Retailers Inc. (OTCBB: HCAR) today announced its financial results for the first quarter ended March 31, 2004.Hometown reported revenues of $65.9 million in the first quarter of 2004 versus revenues of $60.3 million for the same period in 2003, an increase of $5.6 million or 9.3 percent. On a same store basis (excluding the Chrysler/Jeep new car franchise sold in June 2003), revenues increased $7.5 million or 12.8 percent to $65.9 million in the first quarter of 2004 from $58.4 million for the same period in 2003. Gross profit for the first quarter of 2004 increased $500,000 or 5.6 percent to $9.5 million versus gross profit of $9.0 million in the same period in 2003. On a same store basis, gross profit increased $758,000 or 8.6 percent to $9.5 million for the first quarter of 2004 from $8.8 million for the same period in 2003.
Net income for the first quarter of 2004 was $102,000, generating basic and diluted earnings per share of $0.01 versus a net loss of $(121,000) and a basic and diluted loss per share of $(0.02) for the same period in 2003.
"We are pleased to present a year-over-year improvement to our shareholders for our first quarter results of 2004," said Corey Shaker, Hometown president and chief executive officer. "Revenues were up more than 9 percent and net profit increased year-over-year. This improvement for the quarter and our previously reported full year results for 2003 seem to have helped with our commitment to adding shareholder value. However, we are looking for even greater improvements to the bottom line and it would be disingenuous to convey to our shareholders that we are completely satisfied with our first quarter results. As a result, we continue to explore better ways to control expenses while at the same time not hurting our marketing efforts."
Hometown sold 3,314 vehicles during the first quarter of 2004, 398 more than it sold in the same period in 2003 or an increase of more than 13 percent. Total vehicles sold (by category) are shown in the table below.
Year-Over-Year Comparison For the First Quarter Ended
March 31,
2004 2003
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New vehicle 1,496 1,368
Used vehicle - retail 915 936
Used vehicle - wholesale 903 612
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Total units sold 3,314 2,916
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On a same store basis, Hometown sold 3,314 vehicles during the first quarter of 2004, 461 more than it sold in the same period in 2003 or an increase of more than 16 percent. Total vehicles sold (by category) on a same store basis are shown in the table below.
Same Store Basis Comparison For the First Quarter Ended
March 31,
2004 2003
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New vehicle 1,496 1,305
Used vehicle - retail 915 936
Used vehicle - wholesale 903 612
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Total units sold 3,314 2,853
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Sales of new vehicles increased $5.2 million or 14.5 percent to $41.1 million for the first quarter of 2004 versus $35.9 million in 2003. On a same store basis, sales of new vehicles increased $6.9 million or 20.2 percent to $41.1 million for the first quarter of 2004 versus $34.2 million in 2003. Used vehicle sales increased $516,000 or 3.1 percent to $16.9 million for the first quarter of 2004 versus $16.4 million in 2003. Parts and service revenues for the first quarter of 2004 decreased $256,000 or 4.1 percent to $6.0 million versus $6.2 million in 2003. On a same store basis, parts and service revenues remained consistent at $6.0 million for the first quarters of both 2004 and 2003. Other revenues (net) increased $113,000 or 6.3 percent to $1.9 million for the first quarter of 2004 versus $1.8 million for the same period in 2003. On a same store basis, other revenues (net) increased $130,000 or 7.2 percent to $1.9 million for the first quarter of 2004 versus $1.8 million for the same period in 2003.
About Hometown
Hometown Auto Retailers (www.htauto.com) sells new and used cars and light trucks, provides maintenance and repair services, sells replacement parts and provides related financing, insurance and service contracts through nine franchised dealerships and one stand-alone used car facility located in New Jersey, New York, Connecticut, Massachusetts and Vermont. The company's dealerships offer nine American and Asian automotive brands, including Chevrolet, Chrysler, Dodge, Ford, Jeep, Lincoln, Mazda, Mercury and Toyota. Hometown is also active in two "niche" segments of the automotive market: the sale of Lincoln Town Cars and limousines to livery car and livery fleet operators, and the maintenance and repair of cars and trucks at a Ford and Lincoln Mercury factory-authorized free-standing service center.
HOMETOWN AUTO RETAILERS INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
For the Three Months
Ended March 31,
2004 2003
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Revenues
New vehicle sales $41,115 $35,930
Used vehicle sales 16,910 16,394
Parts and service sales 5,959 6,216
Other, net 1,894 1,780
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Total revenues 65,878 60,320
Cost of sales
New vehicle 38,355 33,560
Used vehicle 15,244 14,818
Parts and service 2,759 2,922
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Total cost of sales 56,358 51,300
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Gross profit 9,520 9,020
Selling, general and administrative expenses 8,621 8,446
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Income from operations 899 574
Interest income 44 7
Interest (expense) (801) (778)
Other income 2 13
Other (expense) (4) (3)
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Pre-tax income (loss) 140 (187)
Provision (benefit) for income taxes 38 (66)
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Net income (loss) $102 $(121)
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Earnings (loss) per share, basic $0.01 $(0.02)
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Earnings (loss) per share, diluted $0.01 $(0.02)
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Weighted average shares outstanding,
basic 7,175,105 7,175,105
Weighted average shares outstanding,
diluted 7,471,259 7,175,105
HOMETOWN AUTO RETAILERS INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
March 31, Dec. 31,
ASSETS 2004 2003
(Unaudited)
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Current Assets:
Cash and cash equivalents $5,819 $5,639
Accounts receivable, net 6,725 6,058
Inventories, net 44,531 37,774
Prepaid expenses and other current assets 634 625
Deferred and prepaid income taxes 1,401 1,349
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Total current assets 59,110 51,445
Property and equipment, net 12,543 12,678
Other assets 1,108 1,141
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Total assets $72,761 $65,264
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Floor plan notes payable $45,201 $38,003
Accounts payable and accrued expenses 6,291 5,798
Current maturities of long-term debt
and capital lease obligations 1,004 996
Deferred revenue 467 609
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Total current liabilities 52,963 45,406
Long-term debt and capital lease obligations 11,835 12,076
Long-term deferred income taxes 125 125
Other long-term liabilities and deferred
revenue 808 729
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Total liabilities 65,731 58,336
Commitments and Contingencies
Stockholders' Equity
Preferred stock, $.001 par value,
2,000,000 shares authorized, no
shares issued and outstanding - -
Common stock, Class A, $.001 par value,
12,000,000 shares authorized, 3,655,853
shares issued and outstanding 4 4
Common stock, Class B, $.001 par value,
3,760,000 shares authorized, 3,519,252
shares issued and outstanding 3 3
Additional paid-in capital 29,760 29,760
Accumulated deficit (22,737) (22,839)
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Total stockholders' equity 7,030 6,928
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Total liabilities and stockholders'
equity $72,761 $65,264
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