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[UNITEDAUTO LOGO]
EXHIBIT 99.1
Press Release
UnitedAuto Group, Inc.
13400 Outer Drive West
Detroit, MI 48239
Contact: Roger Penske Sam DiFeo Jim Davidson
Chairman President Executive VP - Finance
313-592-5002 201-325-3305 201-325-3303
[email protected] [email protected]
UNITEDAUTO REPORTS RESULTS FOR THIRD QUARTER 2000
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NET INCOME INCREASED 20.0% TO $11.2 MILLION, OR $0.40 PER DILUTED SHARE, VERSUS
$9.3 MILLION, OR $0.32 PER DILUTED SHARE, FOR THE COMPARABLE PERIOD IN 1999.
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SAME STORE RETAIL REVENUES AND GROSS PROFIT
INCREASED 6.2% AND 6.3%, RESPECTIVELY,
REFLECTING INCREASES IN VEHICLE SALES,
F&I AND SERVICE AND PARTS.
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DETROIT, MI, October 19, 2000 - United Auto Group, Inc. (NYSE: UAG), a
leading publicly- traded automotive retailer, today announced third quarter 2000
earnings. Net income in the quarter amounted to $11.2 million, or $0.40 per
diluted share, which represents a 20.0% increase over the $9.3 million, or $0.32
per diluted share, reported in the third quarter 1999.
Third quarter revenues increased 22.6% to $1.3 billion versus $1.1
billion in the comparable prior year period. Same store revenues were $1.0
billion in the third quarter 2000, an increase of 4.1% over the previous year.
Same store retail revenues, excluding fleet and wholesale sales, increased 6.2%
to $935.6 million as a result of 5.5%, 7.4%, 7.8% and 7.3% increases in same
store new vehicle retail, used vehicle retail, finance and insurance and service
and parts revenues, respectively.
Total new and used retail unit sales increased 22.8% and 12.3%,
respectively, versus the third quarter of 1999. The Company retailed 32,000 new
and 15,845 used vehicles during the third quarter, versus 26,060 new and 14,106
used vehicles in the comparable 1999 period. Same store new and used retail unit
sales amounted to 24,640 and 13,107, respectively, which represent 4.0% and 0.4%
increases over the comparable prior year period.
Roger Penske, Chairman, said, "This was another outstanding quarter for
UnitedAuto. In an increasingly challenging operating environment, the strength
of our business is evidenced by an overall
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24.7% increase in gross profit over the comparable period in 1999, which
includes a 6.3% increase in same store retail gross profits. Our outlook remains
positive and we are comfortable with the First Call Analysts' consensus estimate
of $1.20 per diluted share for 2000."
Sam DiFeo Jr., President, added, "The impact of our continued focus on
operations is evidenced by the excellent performance of our dealerships,
especially the continued improvement of same store dealership operating results
in all aspects of our business versus the corresponding period in 1999."
For the nine months ended September 30, 2000, net income was $23.9
million, or $0.82 per diluted share, which represents a 10.5% increase over the
comparable prior year period. Net income in 2000 includes the effect of a $4.0
million extraordinary charge, including the write-off of related deferred
financing costs, resulting from the repurchase of $147.0 million of 11%
subordinated notes at 101% of face value, during the second quarter of 2000.
Income before extraordinary item was $27.9 million, or $0.95 per diluted share,
which represents a 30.8% increase over the comparable prior year period.
Earnings per share reflects a 16.3% increase in diluted weighted average shares
outstanding. The increase is due primarily to the issuance of $83.0 million in
convertible preferred stock in 1999, offset in part by the purchase of 2,990,000
common shares under the Company's share repurchase program in 2000.
For the nine months ended September 30, 2000, revenues increased 20.2%
to $3.6 billion versus $3.0 billion in the comparable 1999 period. Same store
revenues were $2.8 billion in the nine months ended September 30, 2000, an
increase of 5.6% over the previous year. Same store retail revenues increased
7.5% to $2.6 billion as a result of 7.7%, 6.9%, 8.7% and 7.5% increases in same
store new vehicle retail, used vehicle retail, finance and insurance and service
and parts revenues, respectively.
Total new and used retail unit sales increased 20.6% and 11.5%,
respectively, in the nine months ended September 30, 2000 versus the comparable
period in 1999. The Company retailed 84,793 new and 44,816 used vehicles during
the nine months ended September 30, 2000, versus 70,318 new and 40,192 used
vehicles in the comparable 1999 period. Same store new and used retail unit
sales amounted to 65,833 and 36,862, respectively, which represent 5.7% and 2.0%
increases over the comparable prior year period.
UnitedAuto, which pursues a strategy based on internal growth from its
existing dealerships, as well as from strategic acquisitions, operates 124
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.
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UnitedAuto will host a conference call discussing financial results
relating to the third quarter 2000 on Thursday, October 19, 2000 at 10 A.M.
Eastern time, which will be simultaneously broadcast live over the Internet
through the UnitedAuto website at www.unitedauto.com. Advance registration is
not required. Participants must call (888)-455-0047 (International, please call
(630)-395-0030). Calls need to be made shortly before the call is to commence.
Please provide the leader's name - Roger Penske - as well as the code UAG3Q. The
conference call cannot be accessed without this information.
Statements in this press release may involve forward-looking
statements, including forward-looking statements regarding UnitedAuto's future
reportable sales and earnings growth potential. Actual results may vary
materially because of external factors such as interest rate fluctuations,
changes in consumer spending and other factors over which management has no
control. These forward-looking statements should be evaluated together with
additional information about UnitedAuto's business, markets, conditions and
other uncertainties which could effect UnitedAuto's future performance, which
are contained in UnitedAuto's filings with the Securities and Exchange
Commission and which are incorporated into this press release by reference.
-more-
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UNITED AUTO GROUP, INC.
Consolidated Statements of Operations (Unaudited)
(Amounts In Thousands, Except Per Share Data)
<TABLE>
<CAPTION>
Third Quarter
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2000 1999
---- ----
<S> <C> <C>
New Vehicle Sales (a) $ 818,112 $ 660,562
Used Vehicle Sales (b) 329,484 274,708
Finance and Insurance 53,373 45,679
Service and Parts 130,204 104,417
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Total Revenues 1,331,173 1,085,366
Cost of Sales 1,148,560 938,882
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Gross Profit (c) 182,613 146,484
Selling, General & Administrative Expenses 142,453 116,421
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Operating Income 40,160 30,063
Floor Plan Interest Expense (11,226) (6,999)
Other Interest Expense (8,681) (7,255)
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Income Before Minority Interests and
Income Tax Provision 20,253 15,809
Minority Interests (162) (181)
Income Tax Provision (8,912) (6,631)
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Income before Extraordinary Item 11,179 8,997
Extraordinary Item, Net of Taxes (d) -- 320
-- ---
Net Income $ 11,179 $ 9,317
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Diluted Earnings Per Share Before Extraordinary Item $0.40 $0.31
===== =====
Diluted Earnings Per Share $0.40 $0.32
===== =====
Diluted Weighted Average Shares Outstanding 28,080 29,048
====== ======
EBITDA (e) $46,426 $35,009
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</TABLE>
(a) Includes fleet sales of $30.9 million and $40.7 million in 2000 and 1999,
respectively.
(b) Includes wholesale sales of $82.2 million and $72.2 million in 2000 and
1999, respectively.
(c) Gross profit as a percentage of revenues for new vehicle retail, used
vehicle retail, finance and insurance and service and parts revenues was
8.4%, 10.8%, 60.6%, and 43.6%, respectively, compared with 8.4%, 11.1%,
59.6% and 43.2% in the comparable prior year period.
(d) Results from the repurchase of $12.0 million of 11% subordinated notes,
including the write-off of related deferred financing costs.
(e) EBITDA is defined as income before minority interests, income tax
provision, floor plan interest expense, other interest expense,
depreciation and amortization. Depreciation and amortization amounted to
$6.3 million and $4.9 million in 2000 and 1999, respectively.
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UNITED AUTO GROUP, INC.
Consolidated Statements of Operations (Unaudited)
(Amounts In Thousands, Except Per Share Data)
<TABLE>
<CAPTION>
Nine Months
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2000 1999
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<S> <C> <C>
New Vehicle Sales (a) $ 2,208,984 $ 1,818,590
Used Vehicle Sales (b) 934,861 792,195
Finance and Insurance 145,077 125,678
Service and Parts 357,167 297,233
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Total Revenues 3,646,089 3,033,696
Cost of Sales 3,144,583 2,620,622
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Gross Profit (c) 501,506 413,074
Selling, General & Administrative Expenses 396,209 330,061
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Operating Income 105,297 83,013
Floor Plan Interest Expense (31,683) (20,723)
Other Interest Expense (22,974) (23,510)
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Income Before Minority Interests and
Income Tax Provision 50,640 38,780
Minority Interests (475) (542)
Income Tax Provision (22,282) (16,923)
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Income before Extraordinary Item 27,883 21,315
Extraordinary Item, Net of Taxes (d) (3,969) 320
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Net Income $ 23,914 $ 21,635
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Diluted Earnings Per Share Before Extraordinary Item $ 0.95 $ 0.84
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Diluted Earnings Per Share $ 0.82 $ 0.86
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Diluted Weighted Average Shares Outstanding 29,325 25,207
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EBITDA (e) $ 122,644 $ 97,193
============= ============
</TABLE>
(a) Includes fleet sales of $105.9 million and $136.6 million in 2000 and 1999,
respectively.
(b) Includes wholesale sales of $236.2 million and $205.2 million in 2000 and
1999, respectively.
(c) Gross profit as a percentage of revenues for new vehicle retail, used
vehicle retail, finance and insurance and service and parts revenues was
8.6%, 10.8%, 59.4%, and 43.5%, respectively, compared with 8.5%, 11.2%,
59.7% and 43.3% in comparable prior year period.
(d) The extraordinary item in 2000 results from the repurchase of $147.0
million of 11% subordinated notes at 101% of face value, including the
write-off of related deferred financing costs. The extraordinary item in
1999 results from the repurchase of $12.0 million of 11% subordinated
notes, including the write-off of related deferred financing costs.
(e) EBITDA is defined as income before minority interests, income tax
provision, floor plan interest expense, other interest expense,
depreciation and amortization. Depreciation and amortization amounted to
$17.3 million and $14.2 million in 2000 and 1999, respectively.
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UNITED AUTO GROUP, INC.
Consolidated Condensed Balance Sheets
(Amounts In Thousands)
<TABLE>
<CAPTION>
9/30/00 12/31/99
ASSETS (Unaudited)
------
<S> <C> <C>
Cash and cash equivalents $ 13,976 $ 19,847
Accounts Receivable, Net 189,422 140,473
Inventories 592,737 508,289
Other Current Assets 11,740 10,723
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Total Current Assets 807,875 679,332
Property and equipment, Net 93,366 68,232
Intangible Assets, Net 586,569 494,957
Other Assets 35,818 36,816
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Total Assets $1,523,628 $ 1,279,337
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LIABILITIES AND STOCKHOLDERS' EQUITY
Floor Plan Notes Payable $ 532,125 $ 478,460
Accounts Payable and Accrued Expenses 118,995 93,441
Current Portion Long - Term Debt 13,464 10,389
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Total Current Liabilities 664,584 582,290
Long - Term Debt 390,904 218,535
Other Liabilities 45,687 47,647
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Total Liabilities 1,101,175 848,472
Stockholders' Equity 422,453 430,865
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Total Liabilities and Stockholders' Equity $1,523,628 $ 1,279,337
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</TABLE>
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