Universal Automotive Announces 15% Quarterly Sales Growth
14 August 2000
Universal Automotive Announces 15% Quarterly Sales Growth
ALSIP, Ill. - Universal Automotive Industries, Inc., is pleased to announce
that second quarter 2000 net sales and gross profit grew 15% and 18%,
respectively compared to the same 1999 quarter without including in 1999 the
Canadian distribution business sold as of December 31, 1999 and one-time costs
incurred in 2000 associated with the realignment of its manufacturing facilities.
US brake parts sales for the quarter stood at $18.9 million compared to $15.5
million for 1999, a 22% increase. Gross profit on a normalized basis (i.e.
without including in 1999 the Canadian distribution business sold, one-time
costs incurred in 2000 associated with the realignment of its manufacturing
facilities, and eParts Exchange, Inc. start-up costs) for the second quarter of
2000 was $4.5 million compared to $3.8 million in 1999. This double-digit
growth was achieved in spite of a slump in the automotive aftermarket that
adversely affected our competitors.
Income from continuing operations on a normalized basis was $254 thousand
or $0.04 per share for the quarter ended June 30, 2000 compared to
$563 thousand or $0.08 per share for the second quarter of 1999. This
decrease was due to increased freight, marketing costs associated with
obtaining new business, and interest. Total income from continuing operations
for the second quarter of 2000 was $121 thousand or $0.02 per share.
Six month 2000 sales and gross profit on a normalized basis were
$37.5 million and $8.4 million, respectively compared to six-month 1999 sales
and gross profit of $29.9 million and $6.1 million. For the US brake parts
business, six month 2000 sales and gross profit on a normalized basis were
$34.9 million and $8.1 million as compared to $25.8 million and $5.7 million
in the same 1999 quarter increases of 35% and 42%, respectively. Income from
continuing operations on a normalized basis was $460 thousand or $0.07 per
share for the six months ended June 30, 2000 compared to $455 thousand or
$0.07 per share for the same 1999 period. Total income from continuing
operations for the six months ended June 30, 2000 was $178 thousand or $0.03
per share.
Arvin Scott, President and CEO of Universal Automotive Industries, Inc.,
commented, "We have worked hard to achieve critical mass as demonstrated by
our sales growth in the first half of 2000. We believe that we are one of the
few automotive aftermarket businesses that have grown in the face of a weak
North American aftermarket in 2000. We have been able to maintain our
profitability even after absorbing a higher cost structure due to doubling the
size of our main Chicago area distribution facility late in 1999 and due to
modernization and realignment of our friction manufacturing facilities. These
facilities are now able to support greater sales volume at a modest
incremental cost." Mr. Scott continued, "The web site of our business-to-
business e-commerce subsidiary eParts Exchange, Inc. has just become fully
operational. We are excited about the interest shown by the industry in our
concept and the new business generated from eParts even prior to our
functional web presence."
Universal Automotive Industries, Inc. is headquartered in Alsip, Illinois
and specializes in the distribution and manufacture of brake parts under its
trade names "UBP -- Universal Brake Parts" and "Ultimate Rotors and Friction".
UNIVERSAL AUTOMOTIVE INDUSTRIES, INC.
Summary of Financial Results
(000's) except per share data
Three Months Six Months
Ended June 30 Ended June 30
2000 1999 2000 1999
Net Sales:
Brake parts - US $18,923 $15,478 $34,941 $25,839
Commodities $1,073 $1,903 $2,557 $4,047
Normalized net sales 19,996 17,381 37,498 29,886
Canadian distribution
business sold $0 $2,098 $0 $3,491
Total $19,996 $19,479 $37,498 $33,377
Gross profit:
Brake parts - US $4,373 $3,617 $8,140 $5,733
Commodities $121 $183 $281 $401
Normalized gross
profit 4,494 3,800 8,421 6,134
Canadian distribution
business sold 0 $485 0 $604
One time manufacturing
facility realignment
costs ($114) 0 ($353) 0
Total $4,380 $4,285 $8,068 $6,738
Three Months Six Months
Ended June 30, Ended June 30,
Gross profit percent: 2000 1999 2000 1999
Brake parts - US 23.1% 23.4% 23.3% 22.2%
Commodities 11.3% 9.6% 11.0% 9.9%
Total 22.5% 21.9% 22.5% 20.5%
Selling, general, and
administrative expenses:
SG&A expenses -
normalized $3,399 $2,467 $6,487 $4,574
Canadian distribution
business sold 0 410 0 705
eParts Exchange
start-up 101 0 101 0
Total $3,500 $2,877 $6,588 $5,279
Income from operations:
Brake parts $1,058 $1,169 $1,784 $1,206
Commodities 37 165 150 354
Normalized income
from operations 1,095 1,334 1,934 1,560
Canadian distribution
business sold 0 75 0 (101)
One time manufacturing
facility realignment
costs (114) 0 (353) 0
eParts Exchange start-up (101) 0 (101) 0
Total $880 $1,409 $1,480 $1,459
Interest expense and
other, net 655 470 1,166 929
Income from continuing
operations, net of tax: 254 563 460 455
Income from continuing
operations - normalized
Canadian distribution
business sold 0 45 0 (61)
One time manufacturing
facility realignment
costs (71) 0 (220) 0
eParts Exchange start-up (63) 0 (63) 0
Total income from
continuing operations 121 608 178 394
(Loss) from discontinued
operation 0 (216) 0 (587)
Net income (loss) $121 $392 $178 ($193)
Basic net income (loss)
per share:
Continuing operations
- normalized $0.04 $0.08 $0.07 $0.07
Canadian distribution
business sold 0 0.01 0 (0.01)
One time manufacturing
facility realignment
costs (0.01) (0.03)
eParts Exchange
start-up (0.01) (0.01)
Discontinued
operation 0 (0.03) 0 (0.09)
$0.02 $0.06 $0.03 ($0.03)
Weighted average
shares 6,914,310 6,784,810 6,876,810 6,778,229