EXHIBIT 99.1
Press Release
[UNITED AUTO LOGO] United Auto Group, Inc.
13400 Outer Drive West
Suite B36
Detroit, MI 48239
Contact: Roger Penske Jim Davidson Tony Pordon
Chairman Executive VP -- Finance Vice President -- Investor Relations
313-592-5002 201-325-3303 313-592-5266
jdavidson@unitedauto.com Tony.pordon@unitedauto.com
FOR IMMEDIATE RELEASE
UNITEDAUTO REPORTS RECORD SECOND QUARTER
NET INCOME INCREASED 78%
EARNINGS PER SHARE INCREASED 40%
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REVENUES INCREASED 25% TO $2.0 BILLION
SAME STORE RETAIL REVENUES INCREASED 2.5%
THIRTEENTH CONSECUTIVE QUARTER OF SAME STORE REVENUE GROWTH
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DETROIT, MI, JULY 30, 2002 -- United Auto Group, Inc. (NYSE: UAG), a
FORTUNE 500 automotive specialty retailer, today announced record results for
second quarter 2002 with double-digit growth in revenues, net income and
earnings per share. The record results for the quarter were fueled by a 26%
increase in retail vehicle sales, a 30% increase in service and parts revenues,
a 23% increase in finance and insurance revenues, an improved business mix,
gross margin improvement and reduced inventory carrying costs.
Second quarter revenues increased 25% to $2.0 billion and net income
increased 78% to $23.9 million. Earnings per share were $0.56, an increase of
40% over the $0.40 reported in second quarter 2001. Earnings per share reflect a
26% increase in weighted average shares outstanding. Excluding the effect of
goodwill amortization, net income and earnings per share in second quarter 2001
would have been $16.2 million and $0.48, respectively. On a comparable
accounting basis, net income and earnings per share increased 48% and 17%,
respectively, over the prior year.
During the second quarter 2002, the Company sold two dealerships which
have been treated as discontinued operations in accordance with Statement of
Financial Accounting Standards No. 144. Income and earnings per share from
continuing operations were $22.8 million and $0.53 per share, respectively,
representing increases of 72% and 36% over the comparable prior year period. The
Company completed the intangible asset impairment assessment required by
Statement of Financial Accounting Standards No. 142 and determined that no
adjustment to the carrying value of goodwill is required.
For the six months ended June 30, 2002, revenues increased 23% to $3.6
billion and net income increased 98% to $39.6 million. Earnings per share were
$0.96, an increase of 57% over the $0.61 reported in the comparable prior year
period. Earnings per share reflect a 26% increase in weighted average shares
outstanding. Excluding the effect of goodwill amortization, net income and
earnings per share in the six months would have been $25.4 million and $0.78,
respectively. On a comparable accounting basis, net income and earnings per
share increased 56% and 23%, respectively, over the prior year. Income and
earnings per share from continuing operations were $38.4 million and $0.94 per
share, respectively, representing increases of 95% and 57% over the comparable
prior year period.
Chairman Roger Penske commented, "This was a very positive quarter for
UnitedAuto in which we continued to demonstrate the strength of our business
model. I am extremely pleased with another quarter of record revenues, net
income and earnings per share. We achieved same store revenue growth for both
domestic and foreign nameplates. Importantly, our high margin businesses,
service and parts as well as finance and insurance, continued their steady
growth. Each of these businesses achieved a 5.8% increase in same store
revenues. I remain positive about our business over the balance of the year, and
our earnings guidance of $1.80 -- 1.86 per share from continuing operations
remains unchanged."
President Sam DiFeo stated, "I am pleased with the way our people
responded to the opportunities presented during the second quarter. Our same
store retail gross profit increased 5.1% during the quarter. This is
particularly positive given that same store retail revenues increased by 2.5%.
Our brand focus and investment in service and parts capacity continues to pay
dividends. For example, gross margin increased 50 basis points over second
quarter 2001, primarily as a result of the expansion of business and margins in
our service and parts operations. We will continue to make the investments
necessary to support the growth of our overall business."
UnitedAuto, which has pursued a strategy based on internal growth from
its existing dealerships, as well as from strategic acquisitions, operates 124
franchises in the United States and 68 franchises internationally, primarily in
the United Kingdom. UnitedAuto dealerships sell new and used vehicles, and
market a complete line of aftermarket automotive products and services.
UnitedAuto will host a conference call discussing financial results
relating to second quarter 2002 on Tuesday, July 30, 2002 at 2 P.M. Eastern
time. Advance registration is not required. Participants must call (888)
560-8501 (INTERNATIONAL, PLEASE CALL (712) 257-0455). 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 UAG2Q. The conference call cannot be accessed
without this information. The call will also be simultaneously broadcast live
over the Internet through the UnitedAuto website at www.unitedauto.com.
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 affect 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.
Media Contact:
Phillip M. Hartz
Senior VP -- Corporate Communications
313-592-5365
UNITED AUTO GROUP, INC.
Consolidated Statements of Income (Unaudited)
(Amounts In Thousands, Except Per Share Data)
Second Quarter
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2002 2001
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Revenues
New Vehicles $ 1,150,085 $ 947,057
Used Vehicles 403,868 290,970
Finance and Insurance 46,574 37,834
Service and Parts 199,306 153,439
Fleet 29,427 47,332
Wholesale 130,147 88,719
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Total Revenues 1,959,407 1,565,351
Cost of Sales 1,680,122 1,349,779
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Gross Profit 279,285 215,572
Selling, General & Administrative Expenses 221,149 170,884
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Operating Income 58,136 44,688
Floor Plan Interest Expense (8,919) (11,154)
Other Interest Expense (9,976) (9,570)
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Income from Continuing Operations Before Minority
Interests and Income Tax Provision 39,241 23,964
Minority Interests (509) (284)
Income Tax Provision (15,893) (10,425)
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Income from Continuing Operations 22,839 13,255
Income from Discontinued Operations, Net of Tax
(Including Gain on Disposal of $1,190) 1,050 150
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Net Income $ 23,889 $ 13,405
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Income from Continuing Operations Per Share $ 0.53 $ 0.39
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Diluted Earnings Per Share $ 0.56 $ 0.40
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Diluted Weighted Average Shares Outstanding 42,841 33,889
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EBITDA (a) $ 55,249 $ 41,794
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SAME STORE RETAIL REVENUE
New Vehicles $ 940,140 $ 908,659
Used Vehicles 270,718 277,948
Finance and Insurance 35,234 33,309
Service and Parts 155,441 146,902
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Total $ 1,401,533 $ 1,366,818
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(a) EBITDA is defined as income from continuing operations before minority
interests, income tax provision, other interest expense, depreciation and
amortization. Depreciation was $6.0 million and $3.3 million in 2002 and
2001, respectively. Amortization was $4.9 million in 2001.
UNITED AUTO GROUP, INC.
Consolidated Statements of Income (Unaudited)
(Amounts In Thousands, Except Per Share Data)
Six Months
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2002 2001
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Revenues
New Vehicles $ 2,117,144 $ 1,739,460
Used Vehicles 713,042 553,564
Finance and Insurance 85,358 70,411
Service and Parts 366,218 291,350
Fleet 60,750 81,992
Wholesale 229,430 176,111
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Total Revenues 3,571,942 2,912,888
Cost of Sales 3,058,935 2,509,020
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Gross Profit 513,007 403,868
Selling, General & Administrative Expenses 412,024 325,834
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Operating Income 100,983 78,034
Floor Plan Interest Expense (17,404) (23,426)
Other Interest Expense (17,844) (19,225)
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Income from Continuing Operations Before Minority
Interests and Income Tax Provision 65,735 35,383
Minority Interests (925) (298)
Income Tax Provision (26,383) (15,390)
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Income from Continuing Operations 38,427 19,695
Income from Discontinued Operations, Net of Tax
(Including Gain on Disposal of $1,190) 1,173 280
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Net Income $ 39,600 $ 19,975
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Income from Continuing Operations Per Share $ 0.94 $ 0.60
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Diluted Earnings Per Share $ 0.96 $ 0.61
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Diluted Weighted Average Shares Outstanding 41,076 32,620
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EBITDA (a) $ 94,170 $ 70,545
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SAME STORE RETAIL REVENUE
New Vehicles $ 1,686,132 $ 1,596,004
Used Vehicles 499,290 502,515
Finance and Insurance 64,562 58,835
Service and Parts 287,563 270,068
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Total $ 2,537,547 $ 2,427,422
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(b) EBITDA is defined as income from continuing operations before minority
interests, income tax provision, other interest expense, depreciation and
amortization. Depreciation was $10.6 million and $6.4 million in 2002 and
2001, respectively. Amortization was $9.6 million in 2001.
UNITED AUTO GROUP, INC.
Consolidated Condensed Balance Sheets
(Amounts In Thousands)
6/30/02 12/31/01
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ASSETS (unaudited)
Cash and Cash Equivalents $ 13,699 $ 5,416
Accounts Receivable, Net 310,309 258,266
Inventories 890,378 641,400
Other Current Assets 31,280 16,434
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Total Current Assets 1,245,666 921,516
Property and Equipment, Net 262,791 185,452
Intangible Assets, Net 911,504 784,149
Other Assets 56,942 55,459
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Total Assets $2,476,903 $1,946,576
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LIABILITIES AND STOCKHOLDERS' EQUITY
Floor Plan Notes Payable $ 817,145 $ 620,014
Accounts Payable and Accrued Expenses 277,836 162,062
Current Portion Long - Term Debt 12,204 4,202
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Total Current Liabilities 1,107,185 786,278
Long - Term Debt (a) 586,170 551,840
Other Liabilities 97,444 92,775
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Total Liabilities 1,790,799 1,430,893
Stockholders' Equity 686,104 515,683
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Total Liabilities and Stockholders' Equity $2,476,903 $1,946,576
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(a) Undrawn capacity under the Company's credit facility was $436.5 million
as of June 30, 2002.
UNITED AUTO GROUP, INC.
Selected Data
SECOND QUARTER SIX MONTHS
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2002 2001 2002 2001
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Units
New Retail Units 41,657 35,795 77,197 66,168
Used Retail Units 20,561 17,610 38,517 33,811
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Total Retail Units 62,218 53,405 115,714 99,979
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Revenue Mix
New Vehicles 58.7% 60.5% 59.3% 59.7%
Used Vehicles 20.6% 18.6% 20.0% 19.0%
Finance and Insurance 2.4% 2.4% 2.4% 2.4%
Service and Parts 10.2% 9.8% 10.2% 10.0%
Fleet 1.5% 3.0% 1.7% 2.8%
Wholesale 6.6% 5.7% 6.4% 6.1%
Retail Gross Margin - by Product
New Vehicles 8.6% 8.2% 8.6% 8.3%
Used Vehicles 10.0% 10.5% 10.5% 10.5%
Finance and Insurance 100.0% 100.0% 100.0% 100.0%
Service and Parts 47.2% 44.7% 46.6% 44.7%
Gross Profit per Transaction
New Vehicles $2,370 $2,177 $2,356 $2,180
Used Vehicles 1,960 1,737 1,939 1,722
Finance and Insurance 749 708 738 704
Same Store Retail Revenue Growth
New Vehicles 3.5% 10.6% 5.6% 7.2%
Used Vehicles (2.6%) 4.3% (0.6%) 3.2%
Finance and Insurance 5.8% 18.0% 9.7% 14.7%
Service and Parts 5.8% 6.7% 6.5% 5.7%
Debt to Total Capital Ratio 47% 53% 47% 53%