Fidelity Holdings Reports Record Year-end Results
31 March 1999
Fidelity Holdings Reports Record Year-end Results; Revenues Increase 10,244 Percent; Operating Income From Continuing Operations Increases More Than $2 Million
Business Editors
KEW GARDENS, N.Y.--March 31, 1999--Fidelity
Holdings, Inc. today reported record revenues and
earnings for the fiscal year ended December 31, 1998.
For the year ended December 31, 1998, revenues increased 10,244%
to $98,578,970 compared to $953,033 for the year ended December 31,
1997. Operating income from continuing operations was $2,021,301 in
1998 compared with a loss of ($383,261) in 1997. Net income for the
same period rose 43% to $528,140 versus $369,139 for the year ended
December 31, 1997.
"1998 represented a year of significant growth and exposure for
the Company and its activities," stated Bruce Bendell, chairman and
CEO of Fidelity. Major Automotive was the prime contributor in
Fidelity's exemplary results. Additionally, our recently announced
launch of www.majorworld.com coupled with the IPO's of Autobytel.com
and Autoweb.com lend further credence and
value to our mission. We plan to continue our aggressive path and
regional acquisition strategy to continue to build shareholder value."
Rick Feinstein, chief financial officer, added, "It is obvious
that our focus on the automotive division and the great strides made
strategically, have built an incredible infrastructure capable of
enabling the great accomplishments we made during this fiscal year.
Our operating results are particularly noteworthy in view of the fact
that the results reflect only 7-1/2 months of Major's operations since
its acquisition in May, 1998."
Doron Cohen, president of Fidelity, concluded, "The dedication,
entrepreneurialism and hard work of our team over the past three years
has been justly rewarded. It is with this same passion, strategic
planning and commitment, that we enter 1999."
Other companies experiencing growth through regional and/or
national automotive consolidation strategies are: Lithia Motors
, Republic Industries , Group I Automotive
, United Auto Group , Cross-Continent Auto
Retailers , Home Town Retailers and Sonic
Automotive .
Fidelity Holdings, Inc. is presently exploring the divestiture of
its non-automotive activities by way of sale, merger, consolidation or
other opportunities.
Fidelity Holdings has been a diversified holding company that
utilizes information and technology to target industries experiencing
consolidation and/or deregulation. The Company has operated two
divisions -- Automotive and Technology. The Automotive Division
operates through Major Automotive Group, a leading consolidator of
automotive dealerships in the New York Metropolitan area. The
Technology Division operates under Computer Business Sciences and its
newly formed IG2, Inc. subsidiary, and its plastics subsidiary.
The information contained in this press release, including any
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934 contained herein, should be reviewed in conjunction with the
Company's annual report on Form 10-K and other publicly available
information regarding the Company, copies of which are available from
the Company upon request. Such publicly available information sets
forth many risks and uncertainties related to the Company's business
and such statements, including risks and uncertainties related to that
are unpredictable and outside of the influence and/or control of the
Company.
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Fidelity Holdings, Inc. and Subsidiaries
Consolidated Statements of Operations
Years ended December 31,
1998 1997
Revenues
Sales $ 98,578,970 $ 953,033
Cost of sales 84,121,863 --
------------ ----------
Gross profit 14,457,107 953,033
Operating expenses 11,681,617 1,215,289
Interest expense 754,189 121,005
------------ ----------
Operating income(loss)
from continuing
operations 2,021,301 (383,261)
Income tax expense 514,000 --
------------ ----------
Income(loss) from
continuing operations 1,507,301 (383,261)
Income(loss) from
discontinued operations (979,161) 752,400
------------ ----------
Net income $ 528,140 $ 369,139
Per common share
Operating income(loss)
from continuing operations
-- before taxes
Basic $ 0.28 $ (0.06)
Diluted $ 0.21 $ (0.05)
Income(loss) from
continuing operations
Basic $ 0.20 $ (0.06)
Diluted $ 0.15 $ (0.05)
Income(loss) from
discontinued operations
Basic $ (0.13) $ 0.12
Diluted $ (0.10) $ 0.10
Net income
Basic $ 0.07 $ 0.06
Diluted $ 0.05 $ 0.05
Weighted average number
of shares used in computation
Basic 7,336,794 6,454,350
Diluted 9,636,794 7,550,546
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