Fidelity Holdings Reports Record Q2 & 6 Months Results
23 August 2000
KEW GARDENS, N.Y. - Fidelity Holdings, Inc. (Nasdaq NM:FDHG) announced financial results for its second quarter and six months ended June 30, 2000.
For the second quarter ended June 30, 2000, revenues increased 58% to approximately $86 million from almost $55 million for the second quarter of 1999. The company reported net income of approximately $428,000 or $0.02 per diluted share, for the quarter ended June 30, 2000, compared to net income of $44,000, or $0.00 per diluted share, for the same period a year ago, an increase of approximately 860%.
Revenues for the first half of 2000 increased 53% to almost $155 million from approximately $101 million reported for the six months ended June 30, 1999. Net income for the period increased approximately 200% to almost $483,000, or $0.02 per diluted share, compared to net income of $160,000, or $0.01 per diluted share for the six months ended June 30, 1999.
Richard L. Feinstein, Chief Financial Officer, commented: "The significant increases in sales revenue from sales of used vehicles, approximately 73% more than last year's first-half, and the significant increase in unit sales, is reflective of our successful efforts in addressing the unique requirements of our customers in each of our specific marketing areas. This is a testament to our size and resources, as well as our operating strategies and our absolute commitment to our customers."
"We are quite pleased by our company's recent outstanding financial performance. Our Major Automotive Division had a record quarter, as well as six-month period, and is the primary reason for Fidelity's strong revenue and earnings growth in the period. We believe that this growth trend will continue, especially when we close on recently announced acquisitions and they begin to contribute to the Company's overall growth," stated Bruce Bendell, Chairman and Chief Executive Officer of Fidelity Holdings and President of Major Automotive Group.
James Wallick, President of Fidelity Holdings, added, "Major Automotive announced several acquisitions during the quarter, consistent with our strategic business plan, which further brand the Major Automotive name throughout the New York Metropolitan region, as well as our Major World used car operation. We enhanced our presence on Long Island with the closing of Hempstead Mazda and agreements to acquire, pending manufacturers approval, of Five Towns Lincoln - Mercury of Lawrence, New York, and Hempstead Nissan Dodge Suzuki of Hempstead, NY."
Fidelity Holdings is a diversified holding company that utilizes information and technology to target industries experiencing consolidation and/or deregulation. The Company operates two divisions -- Technology and Automotive. The Technology Division operates primarily through Computer Business Sciences, its IG2, Inc. subsidiary, its Info Systems, Inc. subsidiary and its CarsTV.com, Inc. subsidiary. The Automotive Division operates through Major Automotive Group, a leading consolidator of automotive dealerships in the New York Metropolitan Area.
FIDELITY HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Six Months Ended June 30, Three Months Ended June 30,
2000 1999 2000 1999
Revenues
Automotive
division $153,574,383 $100,273,073 $85,906,527 $54,430,414
Computer
products and
telecommunications
equipment 1,026,307 811,352 465,448 336,086
Total revenues 154,600,690 101,084,425 86,371,975 54,766,500
Operating expenses
Cost of sales -
automotive
division 129,109,481 85,166,266 72,329,372 46,373,321
Cost of sales -
computer
products and
telecommunications
equipment 517,835 664,999 254,043 305,280
Selling, general
and development
expense 23,111,084 13,853,171 12,512,088 7,437,881
Interest expense 1,128,671 877,888 612,293 433,605
Operating income
before compensation
expense to former
executive and
income tax expense 733,619 522,101 664,179 216,413
Compensation expense
to former executive 251,000 251,000
Operating income
before income
tax expense
(benefit) 482,619 522,101 413,179 216,413
Income tax
expense (benefit) - 362,000 (15,136) 172,000
Net income $482,619 $160,101 $428,315 $44,413
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Earnings per
common share
Basic $0.02 $0.01 $0.02 $0.00
Diluted $0.02 $0.01 $0.02 $0.00
Weighted average
number of shares
used in computation
Basic 25,142,058 19,401,402 25,679,214 19,686,699
Diluted 27,527,717 24,199,715 28,047,838 24,567,054