Fidelity Holdings, Inc. Announces Results
17 August 1998
Fidelity Holdings, Inc. Announces Record Three and Six Month Results
KEW GARDENS, N.Y.--Aug. 17, 1998--Revenues for second quarter increase 2007%; Net Income up 57%
Fidelity Holdings, Inc. (FDHG:OTC/BB) today announced record results for the three and six month periods ended June 30, 1998.
For the second quarter ended June 30, 1998, the Company reported a 2,007 percent increase in revenues to $26,564,192 versus $1,260,634 for the comparable 1997 period. Net income for the three months increased approximately 57 percent to $530,884, or $0.06 per diluted share, versus $339,069, or $0.05 per diluted share, in 1997.
For the six months ended June 30, 1998, revenues increased approximately 992 percent to $27,060,472 versus $2,477,656 during the comparable 1997 period. Net income decreased to $462,312, or $0.05 per diluted share, compared with $508,738, or $0.07 per diluted share, the previous year.
Commenting on the results, Richard L. Feinstein, Chief Financial Officer of Fidelity, stated, "The past few months have proven to be a tremendous period of growth for Fidelity as reflected by both our top and bottom line numbers during the second quarter. The primary factor behind this growth was our May 14th acquisition of Major Automotive Group which has positioned us as one of the largest volume automotive dealers in the New York-area automotive market. Being that the acquisition was only reflected for the final six weeks of the quarter, it is our belief that the next quarter will show an even greater impact. Major Auto has been a customer of Fidelity's technology division which has helped it achieve sales of automobiles through its Internet sites and voice products. Major Auto now sells more than 100 vehicles a month through its Internet sites and Interactive Voice Response products."
Bruce Bendell, President of Fidelity, added, "We are delighted to have completed our acquisition of Major Auto and to begin moving forward with our strategy to become a leading consolidator in the New York automotive market. As one of the nation's few publicly-traded auto groups and one of New York's largest dealers, we believe that we have both the resources and the understanding of the tri-state market to make this program a success.
"Even though New York is one of the costliest markets in the nation to operate an automotive dealership, during the past quarter we were able to achieve a gross profit margin of approximately 12 percent, which is on par with that of other public auto groups whose operating locations provide a generally lower cost structure. We anticipate that as we expand our business through acquisition, this number will continue to increase because of our implementation of economies, efficiencies and effective operating practices. I am also pleased to announce that despite the recent General Motors strike, Major Chevrolet was actually able to achieve its best results to date for a single month."
Fidelity Holdings, Inc. (FDHG:OTC/bb) is a diversified holding company utilizing information and technology to target industries experiencing consolidation and/or deregulation. The Company presently operates two distinct divisions, its Automotive Division and its Division of Technology which includes a Voice Processing and Computer Telephony Division. Major Acquisition Corp., a leading consolidator of automotive dealerships in the New York area, owns and operates CHEVROLET, CHRYSLER, PLYMOUTH, DODGE, JEEP and SUBARU dealerships.
For additional information, feel free to visit the company's websites at http://www.fdhg.com and http://www.majorautomotive.com.
This press release may include certain forward looking statements about the Company that are based on management's current expectations. Actual results may differ materially as a result of any one or more of the risks identified in the Company's filings under the Securities Exchange Act of 1934.
Fidelity Holdings, Inc. and Subsidiaries
Consolidated Statement of Operations
(unaudited)
For the Three Months For the Three Months
Ended June 30, 1998 Ended June 30, 1997
Revenues $26,564,192 $1,260,634
Operating Income 1,053,913 474,084
Net Income 530,884 339,069
Net Income Per Share (basic) 0.07 0.05
Weighted Average Number of
Shares Outstanding (basic) 7,192,900 6,235,554
Net Income Per Share (diluted) 0.06 0.05
Weighted Average Number of
Shares Outstanding (diluted) 9,492,900 6,735,554
For the Six Months For the Six Months
Ended June 30, 1998 Ended June 30, 1997
Revenues $27,060,472 $2,477,656
Operating Income 988,464 762,935
Net Income 462,312 508,738
Net Income Per Share (basic) 0.07 0.08
Weighted Average Number of
Shares Outstanding (basic) 7,045,121 6,351,700
Net Income Per Share (diluted) 0.05 0.07
Weighted Average Number of
Shares Outstanding (diluted) 9,345,121 6,851,700