Your Source for Up-To-Date News and Research on the Collision Repair Industry
click here to subscribe to the FREE INSIGHT Editor's Desk News Alert Email
SUBSCRIBERS-ONLY
Today's News
INSIGHT This Month
INSIGHT Archives
Survey Center
Letter to the Editor
Business Tools
Subscription Information
CSI Reporting
Financial Analysis
IRS Audit Guide
Management/
Technical Info
Market Watch Rates
INSIGHT Inside this month's issue...
Feedback
Letter to the Editor
Tuesday August 1
UnitedAuto Reports Record Second Quarter Results
United Auto Group, Inc.(UAG), an international automotive retailer, has reported second quarter income from continuing operations of $36.6 million and related earnings per share of $0.39, representing increases of 15.2 percent and 14.7 percent, respectively, over the comparable period in 2005. Second quarter 2006 net income amounted to $36.8 million and related earnings per share was $0.39.The company's revenue increased 11.8 percent to a record $2.9 billion during the second quarter. The revenue increase was driven by 2.9 percent same-store retail revenue growth, including same-store used vehicle revenue growth of 9.3 percent from the company's foreign nameplates. On an aggregate basis, same-store used vehicle revenues increased 8.5 percent.
UAG Chairman Roger Penske said, "UnitedAuto's performance during the second quarter continues to highlight the strength of our brand portfolio and the continuing success of our investment strategy. Our overall service and parts revenue increased 17.3 percent, including 7.6 percent growth on a same-store basis, which contributed to a 20 basis-point increase in total gross margin to 15.2 percent."
The improvement in the company's gross margin was due primarily to a 50 basis-point increase in service and parts from 10.4 to 10.9 percent of total revenues, coupled with a 36 basis-point increase in margin on service and parts revenues.
For the six months ended June 30, 2006, revenues increased 11.7 percent to $5.6 billion. Income from continuing operations for the six months increased 12.7 percent to $62.6 million and related earnings per share increased 11.9 percent to $0.66 per share. Net income for the six months increased 8.6 percent to $60.9, or $0.64 per share, from $56.1 million, or $0.60 per share, in the prior year. Second quarter 2005 results include $1.2 million ($0.01 per share) of after tax charges relating to severance costs associated with cost saving initiatives in certain markets.
The company currently projects earnings from continuing operations in the third quarter in the range of $0.37 to $0.40 per share, and continues to project earnings from continuing operations for the year in the range of $1.35 to $1.40 per share. Earnings per share projections are based on an average of 94.6 million estimated shares outstanding.
United Auto Group, Inc., headquartered in Bloomfield Hills, Michigan, operates 296 retail automotive franchises, representing 40 different brands, and 27 collision repair centers. UnitedAuto has 173 franchises in 20 states and Puerto Rico and 123 franchises located outside the United States, primarily in the United Kingdom.
©2006 Collision Repair Industry INSIGHT
All Rights Reserved
FEATURED
LINKS:
INSIGHT Supports the NABC!
Do You?