Smart Choice Automotive Group 256% Increase in Second Quarter Earnings
18 December 2000
Smart Choice Automotive Group 256% Increase in Second Quarter Earnings
TITUSVILLE, Fla., Dec. 15 Smart Choice Automotive Group,
Inc. (OTC Bulletin Board: SCHA), which sells and finances used cars in Florida
and Texas, today announced higher sales and earnings for the second quarter
and first half of Fiscal 2001.
For the three months ended October 31, 2000, sales of used cars increased
200% to $50.5 million, compared with sales of $16.8 million in the second
quarter of the previous fiscal year. Interest income rose 237% to
$9.5 million, versus $2.8 million in the quarter ended October 31, 1999. Net
income increased 256% to $833,000, or $0.08 per diluted share, in the most
recent quarter, compared with $234,000, or $0.03 per diluted share, in the
second quarter of FY2000. Diluted earnings per share were calculated on
9,814,000 weighted average diluted shares outstanding for the quarter ended
October 31, 2000, versus 7,355,000 diluted shares outstanding in the
year-earlier quarter.
Sales of used cars increased 160% to $94.3 million in the six months ended
October 31, 2000, versus sales of $36.3 million for the six months ended
October 31, 1999. Interest income increased 232% to $18.9 million in the
first half of FY2001, compared with $5.7 million in the first half of FY2000.
Net income for the first half of FY2001 totaled $2,235,000, or $0.23 per
diluted share, which represented a 408% increase when compared with net income
of $440,000, or $0.06 per diluted share, in the corresponding period of the
previous fiscal year. Diluted earnings per share were calculated on
9,794,000 weighted average diluted shares outstanding for the six months ended
October 31, 2000, versus 7,355,000 diluted shares outstanding in the year
earlier period.
"The significant gains in revenues and earnings during the second quarter
and first half of Fiscal 2001 were in line with management's expectations,"
commented Ed Ernst, Chief Executive Officer of Smart Choice Automotive Group,
Inc. "Our focus has been upon improving operating efficiencies and portfolio
performance at our automotive sales/finance subsidiaries, and I am pleased to
report that our Texas-based PAACO subsidiary turned in an outstanding
performance during the most recent quarter. PAACO also opened its third used
car dealership in Houston earlier this year, further solidifying its position
as the largest retailer of used cars to Latino customers in that market. Our
Smart Choice subsidiary in Florida continues to pursue an optimum relationship
between sales and portfolio performance which will allow it to achieve
management's long-term objectives as a provider of quality transportation to
subprime customers in that State."
"Despite predictions of a slowdown in the national economy in coming
months, we are optimistic regarding the balance of our fiscal year," continued
Ernst. "The used car industry typically performs well during sluggish
economic periods, and we see no reason why this should change in the current
business cycle."
SMART CHOICE AUTOMOTIVE GROUP, INC.
AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(In thousands except per share amounts)
(unaudited)
Three Months Ended
October 31 October 31
2000 1999
Sales of used cars $ 50,515 $ 16,815
Less: Cost of used cars sold 31,526 10,243
Provision for credit losses 11,446 3,021
7,543 3,551
Interest income
Interest income 9,525 2,828
Portfolio interest expense 4,539 1,469
4,986 1,359
Income before operating expenses 12,529 4,910
Operating expenses
Selling, general and administrative 10,841 4,445
Depreciation and amortization 395 73
Other expense (income) (63) --
11,173 4,518
Income before income taxes 1,356 392
Income tax expense 523 158
Net income $ 833 $ 234
Net income per common share
Diluted $0.08 $0.03
Weighted average shares outstanding
Diluted 9,814 7,355
SMART CHOICE AUTOMOTIVE GROUP, INC.
AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(In thousands except per share amounts)
(unaudited)
Six Months Ended
October 31 October 31
2000 1999
Sales of used cars $ 94,304 $ 36,322
Less: Cost of used cars sold 57,714 23,203
Provision for credit losses 22,038 5,654
14,552 7,465
Interest income
Interest income 18,898 5,699
Portfolio interest expense 8,737 2,820
10,161 2,879
Income before operating expenses 24,713 10,344
Operating expenses
Selling, general and administrative 20,607 9,460
Depreciation and amortization 774 165
Other expense (income) (256) -
21,125 9,625
Income before income taxes 3,588 719
Income tax expense 1,353 279
Net income $2,235 $ 440
Net income per common share
Diluted $ 0.23 $0.06
Weighted average shares outstanding
Diluted 9,794 7,355
SMART CHOICE AUTOMOTIVE GROUP, INC.
AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
CONSOLIDATED BALANCE SHEET DATA
(In thousands except per share data)
October 31, April 30,
2000 2000
(unaudited)
Cash and cash equivalents $ 588 $ 1,883
Finance receivables, net $ 146,954 $ 132,855
Total Assets $ 195,449 $ 178,965
Total Liabilities $ 176,586 $ 162,337
Total Shareholders' Equity $ 18,330 $ 16,095