Penske's UnitedAuto Reports Record Results for Q1 2000
8 May 2000
Net Income & Same Store Revenues Up
DETROIT--UnitedAuto Group, Inc. , a publicly traded automotive retailer, today announced a record first quarter 2000 net income of $5.6 million, which represents a 52.5% increase over the comparable prior year period. Earnings per diluted share were $0.19, an 18.8% increase over the $0.16 per share reported in the first quarter 1999. Earnings per share reflects a 29.0% increase in weighted average shares outstanding from 23,307,000 to 30,074,000 in the first quarter of 2000. The net increase resulted primarily from the issuance of $83.0 million in convertible preferred stock.First quarter revenues increased 22.8% to $1,110.8 million versus $904.7 million in the comparable prior year period. Same store revenues were $925.6 million in the first quarter 2000, an increase of 11.3% over the previous year. Same store retail revenues, excluding wholesale and fleet sales, increased 13.3% to $834.3 million.
Roger Penske, Chairman, said "This was an outstanding quarter for UnitedAuto. The strength of our business is evidenced by an overall 21.9% increase in gross profit over the comparable period in 1999, which includes an 11.0% increase in same store gross profits."
Sam DiFeo Jr., added "We are very pleased with the performance of our dealerships, especially the continued improvement of same store dealership operating results in all lines of our business versus the corresponding period in 1999. These improvements were driven primarily by increased sales volumes."
Total retail new and used unit sales increased 25.8% and 12.9%, respectively, versus the first quarter of 1999. The Company retailed 25,466 new and 14,195 used vehicles during the first quarter. Vehicle sales represented approximately 86.2% of first quarter revenue; finance and insurance revenues represented approximately 3.9%; and service and parts represented the remaining 9.9%.
UnitedAuto, which pursues a strategy based on internal growth from its existing dealerships as well as from strategic acquisitions, operates 111 franchises in 17 states, Puerto Rico and Brazil. UnitedAuto dealerships sell new and used vehicles and market a complete line of aftermarket automotive products and services.
UNITEDAUTO GROUP, INC.
Consolidated Statements of Operations (Unaudited)
(Amounts in Thousands, Except Per Share Data)
First Quarter
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2000 1999
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New Vehicle Sales $663,800 $524,691
Used Vehicle Sales 293,071 250,669
Finance and Insurance 43,735 36,664
Service and Parts 110,161 92,708
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Total Revenues 1,110,767 904,732
Cost of Sales 958,654 779,974
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Gross Profit 152,113 124,758
Selling, General and Administrative
Expenses 124,844 103,552
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Operating Income 27,269 21,206
Floor Plan Interest (9,918) (6,503)
Other Interest Expense (6,863) (8,442)
Other Income (a) -- 794
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Income Before Minority Interests
and Income Taxes 10,488 7,055
Minority Interest (231) (148)
Income Tax Provision (4,617) (3,209)
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Net Income $5,640 $3,698
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Diluted Earnings Per Share $0.19 $0.16
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Diluted Weighted Average
Shares Outstanding 30,074 23,307
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EBITDA (b) $32,646 $26,555
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(a) Represents fees received under management agreements at certain
dealerships for which the closing of the acquisition of such
dealerships awaited 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.
Depreciation and amortization amounted to $5.4 million and $4.6
million in 2000 and 1999, respectively.