Smart Choice Automotive Group Reports Q3 Profits
13 November 1997
Smart Choice Automotive Group Reports Profitable Third Quarter, As Revenues Rise 39% From Second Quarter Levels
TITUSVILLE, Fla., Nov. 13 -- Smart Choice Automotive Group,
Inc. , a leading consolidator of the 'dealer-financed' used car
retailing industry in the Southeastern United States, today announced
operating results for the third quarter and first nine months of its 1997
year.
For the quarter ended September 30, 1997, revenues approximated $20.5
million and the Company reported a net profit of $134,681 ($0.01 per share).
During the nine-month period ended September 30, 1997, the Company reported
revenues totaling $43.4 million and a net loss of $7,131,440 ($0.82 per
share).
"Third quarter revenues increased 38.6% from second quarter levels and
were 143% higher than in the first quarter of 1997," noted Gary R. Smith,
president and chief executive officer of Smart Choice Automotive Group, Inc.
"We have continued to execute our consolidation strategy through the addition
of four used car centers and the acquisition of two new car dealerships in
Florida since the end of the second quarter. Recently, we announced plans to
acquire two more new car dealerships, and we expect to open or purchase
another nine used car centers before year-end."
"Income from operations increased by 171%, to $1,607,011, during the July-
September quarter, when compared with the second quarter of 1997," continued
Smith. "While our substantial investments in operating systems and management
infrastructure were the primary cause of our net operating losses this year,
Smart Choice is well-positioned for profitability in 1998. Our 22 new and
used car dealerships, along with our two reconditioning centers, provide a
sound foundation for future growth as we continue our acquisition and new
store opening program."
"Our Florida Finance Group subsidiary ended the third quarter with a gross
finance receivables portfolio of $48.5 million, representing loans to over
6,616 customers," commented Joe Mohr, chief financial officer of the Company.
"To date, our experience with financing automobile purchases for customers
suggests that our reserves are more than adequate, relative to actual
repossessions and credit losses."
Headquartered in Titusville, Florida, Smart Choice Automotive Group, Inc.
(formerly named "Eckler Industries, Inc.") operates a network of self-financed
used vehicle and new car dealerships in the Southeastern United States. The
Company also underwrites, finances and services retail installment contracts
generated from the sale of used cars by its dealerships. Its Eckler's
subsidiary is one of the largest aftermarket suppliers of Corvette parts and
accessories in the world. The Company also provides training and insurance
services for automobile dealers throughout the United States. Its common
stock trades on Nasdaq under the symbol "SMCH."
Any forward-looking statements in this release are made pursuant to the
"safe harbor" provisions of the Private Securities Litigation Act of 1995.
Investors are cautioned that actual results may differ substantially from such
forward-looking statements. Forward-looking statements involve risks and
uncertainties including, but not limited to, continued acceptance of the
Company's products and services in the marketplace, competitive factors,
receivables portfolio risks, dependence upon third-party vendors, and other
risks detailed in the Company's periodic filings with the Securities and
Exchange Commission.
SMART CHOICE AUTOMOTIVE GROUP AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS (Unaudited)
Three Months Ended
Sept 30
1997
Vehicle and Related Revenues:
Sales of New Vehicles $2,624,884
Sales of Used Vehicles 10,941,288
Income on Finance Receivables 2,173,807
Income from Insurance & Training 352,347
Income from Parts & Accessories 4,419,463
20,511,789
Cost of Vehicle & Vehicle Related Revenues:
Cost of New Vehicles Sold 2,303,936
Cost of Used Vehicles Sold 7,316,758
Cost of Insurance & Training 20,205
Cost of Parts & Accessories Sold 2,935,303
Provision for Credit Losses 862,370
13,438,572
Net Revenues from Vehicle Sales and
Vehicle Related Activities 7,073,217
Expenses:
Operating Expenses 5,332,674
Compensation Expense Related to
Employee Stock Options 133,532
5,466,206
Income from Operations 1,607,011
Other Expense (Income):
Interest Expense 1,606,972
Other Income (135,689)
Miscellaneous Expense 1,047
1,472,330
Net Income $134,681
Net Income Per Share $0.01
Weighted Average Number of
Shares Outstanding 9,252,451
SMART CHOICE AUTOMOTIVE GROUP AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS (Unaudited)
Nine Months Ended
Sept 30
1997
Vehicle and Related Revenues:
Sales of New Vehicles $2,624,884
Sales of Used Vehicles 22,631,789
Income on Finance Receivables 4,722,760
Income from Insurance & Training 1,003,603
Income from Parts & Accessories 12,391,663
43,374,699
Cost of Vehicle & Vehicle Related Revenues:
Cost of New Vehicles Sold 2,303,936
Cost of Used Vehicles Sold 16,011,303
Cost of Insurance & Training 56,919
Cost of Parts & Accessories Sold 7,844,569
Provision for Credit Losses 2,411,181
28,627,908
Net Revenues from Vehicle Sales and
Vehicle Related Activities 14,746,791
Expenses:
Operating Expenses 15,441,522
Compensation Expense Related to
Employee Stock Options 3,384,410
18,825,932
Loss from Operations (4,079,141)
Other Expense (Income):
Interest Expense 3,230,472
Other Income (249,438)
Miscellaneous Expense 71,265
3,052,299
Net Loss $(7,131,440)
Net Income (Loss) Per Share $(0.82)
Weighted Average Number of Fully-diluted
Shares Outstanding 8,692,470
SOURCE Smart Choice Automotive Group, Inc.