Hometown Auto Retailers Announces First Quarter 2005 Results
WATERBURY, Conn.--May 1, 20056, 2005--Hometown Auto Retailers, Inc. (OTC BB: HCAR) today announced its financial results for the first quarter ended March 31, 2005.Hometown reported revenues of $61.8 million in the first quarter of 2005 versus revenues of $65.9 million for the same period in 2004, a decrease of $4.1 million or 6.2 percent. Gross profit for the first quarter of 2005 decreased $214,000 or 2.3 percent to $9.3 million versus gross profit of $9.5 million in same period in 2004.
Net income for the first quarter of 2005 was $268,000, generating basic and diluted earnings per share of $0.04 versus net income of $102,000 and basic and diluted earnings per share of $0.01 for the same period in 2004.
"We are pleased to report a higher net profit year over year for the first quarter of 2005," said Corey Shaker, Hometown president and chief executive officer. "Although revenues were down 6.2 percent, we were able to reduce SG&A more than $600,000. This is partially a result of lower legal fees associated with our settling the Morristown and Vergopia legal matters."
Hometown sold 2,867 vehicles during the first quarter of 2005, 447 less than it sold in the same period in 2004 or a decrease of 13.5 percent. Total vehicles sold (by category) are shown in the table below.
Year-Over-Year Comparison For the First Quarter Ended
March 31,
2005 2004
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New vehicles 1,437 1,496
Used vehicles - retail 737 915
Used vehicle - wholesale 693 903
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Total units sold 2,867 3,314
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Sales of new vehicles decreased $3.1 million or 7.5 percent to $38.0 million for the first quarter of 2005 versus $41.1 million in 2004. Used vehicle sales decreased $1.3 million or 7.7 percent to $15.6 million for the first quarter of 2005 versus $16.9 million in 2004. Parts and service revenues for the first quarter of 2005 increased $197,000 or 3.3 percent to $6.2 million versus $6.0 million in 2004. Other revenues (net) increased $131,000 or 6.9 percent to $2.0 million for the first quarter of 2005 versus $1.9 million for the same period in 2004.
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 eight 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 AUTO RETAILERS, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
For the Three Months
Ended March 31,
---------------------
2005 2004
---------- ----------
Revenues
New vehicle sales $38,025 $41,115
Used vehicle sales 15,560 16,910
Parts and service sales 6,156 5,959
Other, net 2,025 1,894
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Total revenues 61,766 65,878
Cost of sales
New vehicle 35,592 38,355
Used vehicle 14,003 15,244
Parts and service 2,865 2,759
---------- ----------
Total cost of sales 52,460 56,358
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Gross profit 9,306 9,520
Selling, general and administrative expenses 8,009 8,648
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Income from operations 1,297 872
Interest income 70 44
Interest (expense) (920) (774)
Other income 2 2
Other (expense) - (4)
---------- ----------
Pre-tax income 449 140
Provision for income taxes 181 38
---------- ----------
Net income $268 $102
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Earnings per share, basic $0.04 $0.01
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Earnings per share, diluted $0.04 $0.01
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Weighted average shares outstanding, basic 7,086,500 7,175,105
Weighted average shares outstanding, diluted 7,210,990 7,471,259
HOMETOWN AUTO RETAILERS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
March 31, December 31,
ASSETS 2005 2004
(Unaudited)
------------ ------------
Current Assets:
Cash and cash equivalents $5,336 $6,101
Accounts receivable, net 6,320 5,081
Inventories, net 42,930 43,440
Prepaid expenses and other current assets 745 634
Deferred and prepaid income taxes 1,464 1,464
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Total current assets 56,795 56,720
Property and equipment, net 13,663 13,854
Other assets 3,524 3,649
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Total assets $73,982 $74,223
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Floor plan notes payable $42,573 $42,474
Accounts payable and accrued expenses 5,750 5,106
Current maturities of long-term debt and
capital lease obligations 5,477 5,505
Deferred revenue 664 735
---------- ----------
Total current liabilities 54,464 53,820
Long-term debt and capital lease obligations 8,521 8,621
Long-term deferred income taxes 123 123
Other long-term liabilities and deferred
revenue 716 726
---------- ----------
Total liabilities 63,824 63,290
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, 3,870,137 shares issued and
outstanding 4 4
Common stock, Class B, $.001 par value,
3,760,000 shares
authorized, 3,519,252 shares issued 3 3
Additional paid-in capital 30,017 30,017
Accumulated deficit (18,823) (19,091)
Less: treasury stock, 940,000 Class B
shares in 2005 (1,043) -
---------- ----------
Total stockholders' equity 10,158 10,933
----------- ----------
Total liabilities and stockholders'
equity $73,982 $74,223
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