UnitedAuto Reports Results for Fourth Quarter and Full-year 1999
8 February 2000
UnitedAuto Reports Results for Fourth Quarter and Full-year 1999
NEW YORK--Feb. 8, 2000--Per Share, Versus a Loss of $18.3 Million, or $0.81 Per Share
in the Comparable Prior Year Period. Net Income for 1999
Totals $27.5 Million, or $1.04 Per Share on a Diluted Basis
Same - Store Dealership Retail Revenues Increased 11.5%
and 12.9% in the Quarter and Year, Respectively,
Versus the Comparable Period in 1998
UnitedAuto Group, Inc. , a leading publicly traded automotive retailer, today announced results for the fourth quarter and year ended December 31, 1999.
Fourth quarter revenues increased 18.0% to $988.8 million versus $838.0 million in the comparable prior year period. Net income in the fourth quarter was $5.9 million, or $0.19 per share on a diluted basis, as compared to a net loss of $18.3 million, or $0.81 per share in 1998.
For the year ended December 31, 1999, revenues were $4.0 billion as compared to $3.3 billion in the comparable prior year period. Net income for the year was $27.5 million, or earnings per share of $1.04 on a diluted basis, as compared to a loss of $0.8 million or $0.04 per share in 1998.
Earnings per share reflects the dilutive effect of 35.6% and 26.7% increases in weighted average shares outstanding to 30,729,000 and 26,526,000 in the fourth quarter and fiscal year, respectively. The increases resulted primarily from the issuance of $83.0 million in convertible preferred stock.
Roger Penske, Chairman, said "1999 was a transitional year for UnitedAuto. Our entire team performed exceptionally well. Together, we strengthened relationships with our OEM partners, acquired new businesses, provided greater focus on the customer, restructured our management team and delivered outstanding dealership performance. Most importantly, we improved the Company's capital structure and implemented new advantageous financing agreements. With its strengthened balance sheet and access to capital, the Company is well positioned for growth."
Sam DiFeo Jr., added "We are very pleased with the performance of our dealerships. Same-store retail revenue increased by 11.5% in the fourth quarter and 12.9% for the full year, and same store retail gross profit increased by 6.4% and 11.1% in the corresponding periods, respectively. These improvements were driven primarily by increases in retail units sold and service and parts revenue."
Net income for the fourth quarter and year 1999 included after-tax extraordinary net gains of $0.4 million and $0.7 million, respectively, resulting from the replacement of a credit facility and the repurchase of $49.0 million ($37.0 million in the fourth quarter) of the Company's 11% Subordinated Notes. The fourth quarter and year 1998 included a $6.9 million after-tax charge for premiums to be paid to an insurance company for its assumption of the repair costs on certain warranties and extended service contracts, and an after-tax loss of $13.3 million related to the Company's discontinued auto finance company operations. Net income for 1998 also included a $1.2 million after-tax extraordinary loss which resulted from amending the Company's borrowing agreements.
Total retail new and used units sold increased 15.4% and 17.0% versus the fourth quarter and year 1998, respectively. The Company retailed 22,941 new and 11,835 used vehicles during the fourth quarter, and 93,259 new and 52,027 used vehicles for the year 1999. Vehicle sales represented approximately 85.7% of fourth quarter revenue and 86.0% of annual revenue; finance and insurance revenues represented approximately 4.1% for both the quarter and the year; and service and parts represented the remaining 10.2% and 9.9% in the quarter and year, respectively.
UnitedAuto, which has pursued a strategy based on internal growth from its existing dealerships as well as from strategic acquisitions, operates 104 franchises in 16 states and Puerto Rico. UnitedAuto dealerships sell new and used vehicles and market a complete line of aftermarket automotive products and services.
This press release contains forward-looking information, and actual results may materially vary from those expressed or implied herein. Factors, including, economic conditions, manufacturer approvals and acquisition risks, that could affect these results are described in the documents filed by the Company with the Securities and Exchange Commission.
UNITEDAUTO GROUP, INC.
Consolidated Statements of Operations (unaudited)
(Amounts in Thousands, Except Per Share Data)
Fourth Quarter
-------------------------------------
1999 1998
New Vehicle Sales $599,316 $499,921
Used Vehicle Sales 247,831 218,265
Finance and Insurance 40,073 32,064
Service and Parts 101,601 87,763
------- ------
Total Revenues 988,821 838,013
Cost of Sales 852,458 728,594
------- -------
Gross Profit 136,363 109,419
Selling, General and
Administrative Expenses 112,783 102,360
------- -------
Operating Income 23,580 7,059
Floor Plan Interest (7,953) (6,364)
Other Interest Expense (5,834) (8,081)
Other Income (a) 301 1,173
Income (Loss) From
Continuing Operations Before
Minority Interests, Income
Taxes and Extraordinary Item 10,094 (6,213)
Minority Interests (180) (136)
Income Tax (Provision) Benefit (4,491) 1,349
Income (Loss) From Continuing
Operations 5,423 (5,000)
Income (Loss) From Discontinued
Operations, Net of Income Tax 18 (13,281)
------ --------
Income (Loss) Before
Extraordinary Item 5,441 (18,281)
Extraordinary Item, Net
of Income Tax 412 --
------ --------
Net Income (Loss) $5,853 ($18,281)
======= =========
Diluted Earnings Per
Share From Continuing
Operations $0.18 ($0.22)
======= =========
Diluted Earnings Per Share $0.19 ($0.81)
======= =========
Diluted Weighted Average
Shares Outstanding 30,729 22,665
======= =========
EBITDA (b) $28,832 $25,107
======= =========
(a) Represents fees received under management agreements at certain
dealerships for which acquisition is pending final manufacturer
approval.
(b) EBITDA is defined as income from continuing operations before
minority interests, income tax provision, floor plan interest,
other interest expense, depreciation and amortization and the
effect of the $12.6 million unusual charge recorded during the
fourth quarter of 1998. Depreciation and amortization amounted to
$5.0 million and $3.0 million in 1999 and 1998, respectively.
UNITEDAUTO GROUP, INC.
Consolidated Statements of Operations (unaudited)
(Amounts in Thousands, Except Per Share Data)
Year
-------------------------------------
1999 1998
New Vehicle Sales $2,417,906 $1,958,885
Used Vehicle Sales 1,040,026 922,793
Finance and Insurance 165,751 127,405
Service and Parts 398,834 334,064
-------------- --------------
Total Revenues 4,022,517 3,343,147
Cost of Sales 3,473,080 2,887,530
-------------- --------------
Gross Profit 549,437 455,617
Selling, General and
Administrative Expenses 445,142 375,043
-------------- --------------
Operating Income 104,295 80,574
Floor Plan Interest (28,676) (28,718)
Other Interest Expense (29,344) (31,462)
Other Income (a) 2,571 4,800
-------------- --------------
Income From Continuing
Operations Before Minority
Interests, Income Taxes and
Extraordinary Item 48,846 25,194
Minority Interests (722) (262)
Income Tax Provision (21,414) (11,554)
-------------- --------------
Income From Continuing
Operations 26,710 13,378
Income (Loss) From
Discontinued Operations,
Net of Income Tax 46 (12,940)
Income Before Extraordinary
Item 26,756 438
Extraordinary Item,
Net of Income Tax 732 (1,235)
Net Income (Loss) $27,488 $(797)
============== =============
Diluted Earnings Per Share
From Continuing Operations $1.01 $0.64
============== =============
Diluted Earnings Per Share $1.04 ($0.04)
============== =============
Diluted Weighted Average
Shares Outstanding 26,526 20,932
============== =============
EBITDA (b) $125,997 $114,388
============== =============
(a) Represents fees received under management agreements at certain
dealerships for which acquisition is pending final manufacturer
approval.
(b) EBITDA is defined as income from continuing operations before
minority interests, income tax provision, floor plan interest,
other interest expense, depreciation and amortization and the
effect of the $12.6 million unusual charge recorded during the
fourth quarter of 1998. Depreciation and amortization amounted to
$19.1 million and $16.5 million in 1999 and 1998, respectively.