Universal Automotive Posts Q1 Sales and Net Income
15 May 2000
Universal Automotive Industries, Inc. Posts Record First Quarter Sales and Net Income
ALSIP, Ill., May 11 Universal Automotive Industries, Inc.
today announced record levels of first quarter sales
and net income. Sales for the quarter ended March 31, 2000 were
$17.5 million, a 26% increase over the same period of 1999. Net income for
the 2000 first quarter was $57 thousand ($0.01 per share) compared to a loss
from continuing operations in the first quarter of 1999 of $213 thousand
($0.03 per share). In the first quarter of 1999, the loss from the
discontinued operation of $372 thousand increased the total loss to
$585 thousand ($0.09 per share).
Brake parts sales for the first quarter of 2000 increased 36% compared to
the first quarter of 1999 primarily due to shipments to Pep Boys, Inc., a
significant new customer with over 650 locations and over 6,800 service bays
in 37 states and Puerto Rico. The increase was achieved in spite of the sale
of the Canadian brake parts distribution business in December 1999 (which
accounted for sales of $1.4 million in the first quarter of 1999).
Gross profit and the gross profit percent improved dramatically (50% and
3.5 points, respectively) due to improved product mix and due to the
incremental nature of the sales to new customers: the Company's infrastructure
was in place to service the new volume and, therefore, fixed costs did not
increase appreciably.
Arvin Scott, President and CEO commented "Last year we grew our brake
parts business 16%, which is four times faster than the reported growth for
the industry. Our first quarter brake parts sales are up 36% compared to 1999
with profitable results -- a remarkable accomplishment for any business
fighting for market share in an essentially mature market." Mr. Scott
continued, "I would like to thank our entire organization for their
outstanding commitment to customer care. Despite our incredible growth this
quarter, service levels exceed industry averages."
UNIVERSAL AUTOMOTIVE INDUSTRIES, INC.
Summary of Financial Results
($000's) except per share data
Three Months Ended March 31
2000 1999
Net Sales:
Brake parts $16,018 $11,755
Commodities 1,484 2,144
Total 17,502 13,899
Gross profit 3,689 2,452
Gross profit percent 21.1% 17.6%
Selling, general, and administrative
expenses 3,088 2,402
Income from operations 601 50
Interest expense and other, net 512 459
Income (loss) before provision (benefit)
for income taxes 89 (409)
Income tax provision (benefit) 32 (196)
Income (loss) from continuing operations 57 (213)
Loss from discontinued operation 0 (372)
Net income (loss) $57 $(585)
Basic income (loss) per share:
Continuing operations $0.01 $(0.03)
Discontinued operation 0.00 (0.06)
Net income (loss) $0.01 $(0.09)
Diluted income (loss) per share:
Continuing operations $0.01 $(0.03)
Discontinued operation 0.00 (0.06)
Net income (loss) $0.01 $(0.09)
Weighted average shares outstanding:
Basic 6,839,310 6,771,647
Common stock equivalents resulting
from warrants and options 1,172,035 0
Diluted 8,011,345 6,771,647