SOURCE: The Major Automotive Companies, Inc.

August 09, 2005 11:31 ET

The Major Automotive Companies Reports First Quarter Results for 2005

LONG ISLAND CITY, NY -- (MARKET WIRE) -- August 9, 2005 -- The Major Automotive Companies, Inc. (OTC BB: MAJRE) today reported its results for the quarter ended March 31, 2005.

Revenues, at $101,476,404 for the quarter ended March 31, 2005, increased sharply from the prior year's first quarter revenues of $84,871,806. Gross profits for the 2005 first quarter increased to $16,915,109 from $14,113,879 for the comparable 2004 quarter. Pre-tax profit was $363,580 in the 2005 first quarter, compared with a pre-tax loss $288,409 in the first quarter of 2004.

Net profit was $265,702, or $.03 per diluted share, for the first quarter of 2005 compared with a net loss of $187,997, or $.02 per diluted share, for the first quarter of 2004.

The average number of shares used in the computations of diluted earnings per share was 9,226,855 and 9,474,856 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 and Section 21E of the Securities and Exchange Act of 1934 contained herein, should be reviewed in conjunction with the Company's annual report on Form 10-KSB 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
                FOR THE THREE MONTHS ENDED MARCH 31,
                            (Unaudited)

                                        2005             2004
                                   -------------    -------------

Sales                              $ 101,476,404    $  84,871,806
Cost of sales                         84,561,295       70,757,927
                                   -------------    -------------
  Gross profit                        16,915,109       14,113,879

Operating expenses                    16,370,331       14,214,115
Interest expense, net of
 interest income                         181,198          188,173
                                   -------------    -------------

  Income (loss) before
   income taxes                          363,580         (288,409)

Income tax benefit (expense)             (97,878)         100,412
                                   -------------    -------------

Net income (loss)                  $     265,702    $    (187,997)
                                   =============    =============

Net loss per common share:
  Basic                            $        0.03    $       (0.02)
  Diluted                          $        0.03    $       (0.02)
                                   =============    =============

Average number of shares
 used in computation:
  Basic                                9,204,228        9,474,856
  Diluted                              9,226,855        9,474,856
                                   =============    =============

Contact Information

  • Contacts:

    Eric L. Keltz
    718/937-2123