UnitedAuto Net Income Increases
BLOOMFIELD HILLS, Mich.--April 19, 2005--United Auto Group, Inc. , a FORTUNE 500 automotive specialty retailer, today announced a 13.3% rise in first quarter net income and its 24th consecutive quarter of record results. Total revenue for the quarter increased 13.8% to $2.6 billion. The growth in revenue includes a 0.6% increase in same-store retail revenue highlighted by a 6.9% increase in service and parts and a 4.7% increase in finance and insurance. Same-store new and used vehicle retail revenues were essentially flat for the quarter. Net income increased to $22.9 million, or $0.49 per share, from $20.2 million, or $0.48 per share, in the prior year. Earnings per share reflects a 10.2% increase in weighted average shares outstanding.Commenting on the Company's results, Chairman Roger Penske said, "We are delighted with the performance of our business in the first quarter despite an overall difficult operating environment and challenging weather conditions in certain markets. UnitedAuto's investments in new facilities and expanded service capacity at many locations contributed to a mix shift towards the higher margin service and parts business in the quarter. Specifically, our overall service and parts business comprised 10.9% of our revenue, an increase of 61 basis points over the first quarter of 2004." Penske also said, "We have completed two acquisitions so far this year representing approximately $90 million in annual revenues. We expect to add approximately $300 - $500 million in net annual revenue through acquisitions this year."
Commenting further Penske said, "In the second quarter, we expect the overall retail market to remain competitive. The Company is currently projecting earnings per share in the second quarter in the range of $0.65 to $0.70 based on an estimated average of 47.0 million shares outstanding. Based on our performance in the first quarter, we are raising our 2005 earnings estimate to $2.34 - $2.41 per share."
About UnitedAuto
UnitedAuto, which has pursued a strategy based on internal growth from its existing dealerships, as well as from strategic acquisitions, operates 149 franchises in the United States and 100 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 ----------------------- 2005 2004 ----------- ----------- New Vehicles $1,433,248 $1,267,287 Used Vehicles 566,894 508,696 Finance and Insurance 57,799 50,901 Service and Parts 278,519 230,820 Fleet 31,915 26,406 Wholesale 188,495 161,931 ----------- ----------- Total Revenues 2,556,870 2,246,041 Cost of Sales 2,168,894 1,914,060 ----------- ----------- Gross Profit 387,976 331,981 SG&A Expenses 315,048 265,691 Depreciation and Amortization 10,560 8,523 ----------- ----------- Operating Income 62,368 57,767 Floor Plan Interest Expense (13,853) (12,965) Other Interest Expense (11,481) (10,765) ----------- ----------- Income from Continuing Operations Before Minority Interests and Income Tax Provision 37,034 34,037 Minority Interests (143) (320) Income Tax Provision (13,668) (13,211) ----------- ----------- Income from Continuing Operations 23,223 20,506 Loss from Discontinued Operations, Net of Tax (331) (302) ----------- ----------- Net Income $22,892 $20,204 =========== =========== Income from Continuing Operations Per Diluted Share $0.50 $0.48 =========== =========== Diluted EPS $0.49 $0.48 =========== =========== Diluted Weighted Average Shares Outstanding 46,875 42,521 =========== ===========
UNITED AUTO GROUP, INC.
Consolidated Condensed Balance Sheets
(Amounts In Thousands)
(Unaudited)
3/31/05 12/31/04
----------- -----------
Assets
Cash and Cash Equivalents $18,148 $12,984
Accounts Receivable, Net 392,425 366,475
Inventories 1,381,527 1,275,293
Other Current Assets 56,658 44,330
----------- -----------
Total Current Assets 1,848,758 1,699,082
Property and Equipment, Net 415,056 411,748
Intangibles 1,248,399 1,231,311
Other Assets 55,418 86,956
Assets of Discontinued Operations 98,832 103,704
----------- -----------
Total Assets $3,666,463 $3,532,801
=========== ===========
Liabilities and Stockholders' Equity
Floor Plan Notes Payable $1,279,413 $1,218,837
Accounts Payable and Accrued Expenses 447,869 406,497
Current Portion Long-Term Debt 3,577 11,367
----------- -----------
Total Current Liabilities 1,730,859 1,636,701
Long-Term Debt 603,793 574,970
Other Long-Term Liabilities 180,160 179,104
Liabilities of Discontinued Operations 62,196 66,991
----------- -----------
Total Liabilities 2,577,008 2,457,766
Stockholders' Equity 1,089,455 1,075,035
----------- -----------
Total Liabilities and Stockholders'
Equity $3,666,463 $3,532,801
=========== ===========
UNITED AUTO GROUP, INC.
Selected Data
First Quarter
-----------------------
2005 2004
----------- -----------
Units
New Retail Units 43,760 39,919
Used Retail Units 22,730 21,381
----------- -----------
Total Retail Units 66,490 61,300
=========== ===========
Same-Store Retail Revenue
New Vehicles $1,248,645 $1,252,414
Used Vehicles 498,257 501,008
Finance and Insurance 52,989 50,613
Service and Parts 242,419 226,737
----------- -----------
Total Same-Store Retail Revenue $2,042,310 $2,030,772
=========== ===========
Same-Store Retail Revenue Growth
New Vehicles (0.3%) 12.1%
Used Vehicles (0.5%) 7.9%
Finance and Insurance 4.7% 7.0%
Service and Parts 6.9% 16.5%
Revenue Mix
New Vehicles 56.1% 56.4%
Used Vehicles 22.2% 22.6%
Finance and Insurance 2.3% 2.3%
Service and Parts 10.9% 10.3%
Fleet 1.1% 1.2%
Wholesale 7.4% 7.2%
Retail Gross Margin - by Product
New Vehicles 8.8% 8.6%
Used Vehicles 9.3% 9.0%
Finance and Insurance 100.0% 100.0%
Service and Parts 54.1% 54.2%
Gross Profit per Transaction
New Vehicles $2,867 $2,736
Used Vehicles 2,329 2,129
Finance and Insurance 869 830
UNITED AUTO GROUP, INC.
Selected Data (Continued)
First Quarter
------------------------
2005 2004
------------------------
Brand Mix:
Toyota/Lexus 21% 23%
BMW 14% 15%
Honda/Acura 13% 10%
Mercedes 9% 11%
Ford Premier Group 8% 10%
Audi 7% 4%
General Motors 7% 8%
Ford 5% 4%
Nissan/Infiniti 4% 3%
Chrysler 3% 4%
Other 9% 8%
Debt to Total Capital Ratio 36% 35%
Adjusted EBITDA (a) $59,075 $53,325
Rent Expense $29,231 $22,649
(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
2005 2004
------------------------
Income from continuing
operations
before minority interests
and income tax
provision $ 37.0 $ 34.0
Other interest expense 11.5 10.8
Depreciation and amortization 10.6 8.5
------------------------
Adjusted EBITDA $59.1 $53.3
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