SOURCE: The Major Automotive Companies, Inc.

July 25, 2005 18:16 ET

The Major Automotive Companies Reports Year-End Results

Revenue $397 Million in 2004 Compared With $380 Million in 2003; Gross Profits in 2004 $64.5 Million From $60.6 Million in 2003; Net Loss in 2004 of $6.8 Million vs. Net Loss in 2003 of $1.1 Million

LONG ISLAND CITY, NY -- (MARKET WIRE) -- July 25, 2005 -- The Major Automotive Companies, Inc. (OTC BB: MAJR) today reported its results for the year ended December 31, 2004.

For the year ended December 31, 2004, revenues increased to $396,981,562 compared with $380,298,852 for the year ended December 31, 2003. Gross profits for the year 2004 increased to $64,526,038 in 2004 from $60,643,692 for the 2003 year.

Net loss in 2004 was $(6,837,962) or $(0.72) per diluted share versus a net loss of $(1,130,264) or $(0.12) per diluted share for the prior year. The average number of shares used in the computations was 9,486,905 and 9,436,969 in the 2004 and 2003 years, respectively. The net loss in 2004 included a non-cash charge for the write-down of goodwill of $8,116,000 with no comparable amount in 2003.

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 Statements of Operations

Years ended December 31,         2004            2003            2002
                           --------------  --------------  --------------

Sales                      $  396,981,562  $  380,298,852  $  397,947,494
Cost of sales                 332,455,524     319,655,160     333,809,386
                           --------------  --------------  --------------
  Gross profit                 64,526,038      60,643,692      64,138,108

Operating expenses            (62,280,951)    (60,912,306)    (63,071,054)
Goodwill write-down            (8,116,000)              -               -
Interest expense, net of
 interest income                 (737,774)       (779,732)       (961,826)
                           --------------  --------------  --------------

  Income (loss) before income
   taxes and loss from
   discontinued operations     (6,608,687)     (1,048,346)        105,228

Income tax expense
 (benefit)                        229,275         (81,918)       (190,000)
                           --------------  --------------  --------------


  Loss from continuing
   operations                  (6,837,962)     (1,130,264)        (84,772)

Loss from discontinued
 operations (net of income
 tax benefit)                           -               -        (206,000)
                           --------------  --------------  --------------


Net loss                   $   (6,837,962) $   (1,130,264) $     (290,772)
                           ==============  ==============  ==============

Loss per common share -
  continuing operations
     Basic                 $        (0.72) $        (0.12) $        (0.01)
     Diluted               $        (0.72) $        (0.12) $        (0.01)
                           ==============  ==============  ==============

Loss per common share -
  discontinued operations:
     Basic                 $            -  $            -  $        (0.02)
     Diluted               $            -  $            -  $        (0.02)
                           ==============  ==============  ==============

Net loss per common share:
     Basic                 $        (0.72) $        (0.12) $        (0.03)
     Diluted               $        (0.72) $        (0.12) $        (0.03)
                           ==============  ==============  ==============

Average number of shares
  used in computation:
     Basic                      9,486,905       9,436,969       8,947,332
     Diluted                    9,486,905       9,436,969       8,947,332
                           ==============  ==============  ==============

Contact Information

  • Contacts:
    Eric L. Keltz
    718/937-2123