SOURCE: The Major Automotive Companies, Inc.

September 15, 2005 17:00 ET

The Major Automotive Companies Reports First Half Results

LONG ISLAND CITY, NY -- (MARKET WIRE) -- September 15, 2005 -- The Major Automotive Companies, Inc. (OTC BB: MAJRE) today reported its results for the first half of 2005.

Revenues for the first six months of the year ended June 30, 2005 increased to $236,284,937 from $188,794,842 for the comparable 2004 period. Gross profits for the first half of 2005 increased to $39,034,658 from $31,103,564 for the corresponding 2004 period. Net income for the six months ended June 30, 2005 was $2,332,039, or $.25 per diluted share, versus $1,055,238, or $.11 per diluted share, for the six months ended June 30, 2004. The average number of shares used in the computation in the 2005 period was 9,230,771, compared with 9,488,410 shares in the corresponding prior period.

For the quarter ended June 30, 2005, revenues were $134,808,533 compared with $103,923,036 for the quarter ended June 30, 2004. Gross profits for the current quarter were $22,119,549 compared with $16,989,685 for the second quarter in 2004. Net income was $2,066,337, or $0.22 per diluted share, for the quarter ended June 30, 2005 versus net income of $1,243,235, or $0.13 per diluted share, for the comparable quarter in the prior year. The average number of shares used in the computations was 9,234,543 and 9,489,505 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 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)

                     For the Six Months Ended   For the Three Months Ended
                             June 30,                    June 30,
                        2005          2004          2005          2004
                    ------------  ------------  ------------  ------------

Sales               $236,284,937  $188,794,842  $134,808,533  $103,923,036
Cost of sales        197,250,279   157,691,278   112,688,984    86,933,351
                    ------------  ------------  ------------  ------------
   Gross profit       39,034,658    31,103,564    22,119,549    16,989,685

Operating expenses    35,273,640    29,614,439    18,903,309    15,400,324
Interest expense,
 net of interest
 income                  360,496       373,672       179,298       185,499
                    ------------  ------------  ------------  ------------

   Income before
    income taxes       3,400,522     1,115,453     3,036,942     1,403,862
Income tax expense     1,068,483        60,215       970,605       160,627
                    ------------  ------------  ------------  ------------

Net income          $  2,332,039  $  1,055,238  $  2,066,337  $  1,243,235
                    ============  ============  ============  ============


Net income per
 common share
   Basic            $       0.25  $       0.11  $       0.22  $       0.13
   Diluted          $       0.25  $       0.11  $       0.22  $       0.13
                    ============  ============  ============  ============

Average number of
 shares used in
 computation:
   Basic               9,210,394     9,480,889     9,216,492     9,486,922
   Diluted             9,230,771     9,488,410     9,234,543     9,489,505
                    ============  ============  ============  ============

Contact Information

  • Contacts:

    Eric Keltz
    728/937-3700 x 326