SOURCE: The Major Automotive Companies, Inc.

January 30, 2006 10:30 ET

The Major Automotive Companies Reports Nine Month Results

LONG ISLAND CITY, NY -- (MARKET WIRE) -- January 30, 2006 -- The Major Automotive Companies, Inc. (OTC BB: MAJRE) today reported its results for the first nine months of 2005.

Revenues for the first nine months of the year ended September 30, 2005 increased to $366,756,150 from $292,912,584 for the comparable 2004 period. Gross profits for the first nine months of 2005 increased to $60,418,913 from $47,096,844 for the corresponding 2004 period. Net income for the nine months ended September 30, 2005 was $3,487,634, or $.38 per diluted share, versus $1,647,191, or $.17 per diluted share, for the nine months ended September 30, 2004. The average number of shares used in the computation in the 2005 period was 9,235,497, compared with 9,494,217 shares in the corresponding prior period.

For the quarter ended September 30, 2005, revenues were $130,471,213 compared with $104,117,742 for the quarter ended September 30, 2004. Gross profits for the current quarter were $21,384,255 compared with $15,993,280 for the second quarter in 2004. Net income was $1,155,595, or $0.13 per diluted share, for the quarter ended September 30, 2005 versus net income of $591,953, or $0.06 per diluted share, for the comparable quarter in the prior year. The average number of shares used in the computations was 9,244,708 and 9,505,551 in the 2005 and 2004 quarters, respectively.

The Major Automotive Companies, Inc. is a holding company for the Major Automotive Group, a leading consolidator of automotive dealerships in the New York Metropolitan area.

For additional information, visit the Company's website at http://www.majorworld.com/

The information contained in this press release, including any "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, contained herein, should be reviewed in conjunction with the Company's annual report on Form 10-K and other publicly available information regarding the Company, copies of which are available from the Company upon request. Such publicly available information sets forth many risks and uncertainties related to the Company's business and such statements, including risks and uncertainties related to that are unpredictable and outside of the influence and/or control of the Company.

         THE MAJOR AUTOMOTIVE COMPANIES, INC. AND SUBSIDIARIES
            CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                             (Unaudited)

                          Nine Months Ended          Three months Ended
                         ------------------         -------------------
                            September 30,               September 30,
                         2005          2004          2005          2004
                     ------------  ------------  ------------  ------------

Sales                $366,756,150  $292,912,584  $130,471,213  $104,117,742
Cost of sales         306,337,237   245,815,740   109,086,958    88,124,462
                     ------------  ------------  ------------  ------------
  Gross profit         60,418,913    47,096,844    21,384,255    15,993,280

Operating expenses     52,567,005    43,266,545    18,824,845    14,537,566
Interest expense, net
 of interest income     2,983,201     1,998,814     1,091,225       739,882
                     ------------  ------------  ------------  ------------
  Income before
   income taxes         4,868,707     1,831,485     1,468,185       716,032

Income tax expense      1,381,073       184,294       312,590       124,079
                     ------------  ------------  ------------  ------------

Net income            $ 3,487,634  $  1,647,191  $  1,155,595  $    591,953
                     ============  ============  ============  ============
Net income per
 common share:
  Basic               $      0.38  $       0.17  $       0.13  $       0.06
  Diluted             $      0.38  $       0.17  $       0.13  $       0.06
                     ============  ============  ============  ============

Average number of
 shares used in
 computation:
  Basic                 9,214,382     9,484,907     9,222,228     9,492,856
  Diluted               9,235,497     9,494,217     9,244,708     9,505,551
                     ============  ============  ============  ============

Contact Information

  • Contacts:
    Eric Keltz
    728/937-3700 x 326