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Rankin Automotive Group Announces First Quarter Earnings

11 July 1997

Rankin Automotive Group Announces First Quarter Earnings

    ALEXANDRIA, La., July 11 -- Randall B. Rankin, President of
Rankin Automotive Group, Inc. announced sales and earnings for
its first quarter ended May 25, 1997 compared to the same period of the
previous year.

                                                     Three Months Ended
                                                           May 25,
                                                      1997         1996
    ($000's omitted except in per share earnings)

    Net Sales                                       $9,907       $6,885
    Net Income                                         122          204
    Earnings Per Share                                $.03         $.07

    The results of the first three months of operations (ended May 25, 1997)
of the current fiscal year reflected a sales growth of 43.9% from $6.9 million
for the quarter ended May 25, 1996 to $9.9 million for the comparable period
of this year.  Earnings were slightly lower ($203,684 for the quarter ended
May 25, 1996 compared to $122,295 for the comparable period ended
May 25, 1997) due primarily to an increased level of OSG&A expenses resulting
from the 15-store growth over that period.  Company management is aggressively
working to reduce the payroll costs which contributed to the overall cost
increase.  Significant progress has been made in the integration of the
recently acquired Mississippi operations.  The Company has begun to centralize
all management processes company-wide and consolidate many functions into a
singular location to gain additional efficiencies.
    During the current period, two new stores were opened (Winnfield, LA and
Jasper, TX) to bring the total company locations to forty (40).  Subsequent to
the reported period, the Company acquired another store location on June 25,
1997 in Natchitoches, LA with two new store openings planned for the month of
August, 1997.
    The balance sheet items continue to reflect a strong, solvent position
with a debt to equity ratio of 0.2 to 1.0 and a current ratio of 5.0 to 1.0.
Cash of approximately $4.0 million continues to be held in reserve in an
investment account for implementation of future growth strategy.
    Looking forward, the Company will continue to focus its efforts and
resources on the execution of its business strategy and its management
information systems.  In connection with the overall business strategy of
controlled growth, the Company has implemented store modernization and/or
relocation efforts to improve its image and be more accessible to its customer
base.

SOURCE  Rankin Automotive Group