July 23, 2002
cars4U.com third quarter pre-tax profit doubles over prior year
Toronto, Ontario – cars4U.com Ltd. announced its financial results for the third quarter of fiscal 2002. Earnings before income taxes were $862,000 in the third quarter of 2002, compared to $291,000 in the third quarter of 2001.
While these figures indicate a tripling of pre-tax earnings for the quarter, $280,000 of the increase was as a result of a new accounting policy on securitization of leases. With that figure taken into account, earnings before income taxes for the quarter were $582,000, double the earnings before income taxes for the same period last year.
“We’re building momentum across all of our operating units, with pre-tax profit double what it was in the same quarter last year,” said cars4U’s President and CEO Barry Shafran. “Day-to-day performance remains our top priority, but we’re continuing to aggressively seek out new growth opportunities as well.”
Revenues for the three months ended May 31, 2002 totalled $23.4 million, compared to $25.9 million reported for the same period last year. The loss of revenues from the formerly held Trenton Chrysler dealership accounted for the drop. Sold in early fiscal 2002, Trenton Chrysler contributed $2.8 million in revenues during the same quarter last year. With the sale taken into account, same store sales for the third quarter increased by $0.3 million or 1.4% over the prior year.
For the nine-months ended May 31, cars4U generated pre-tax income of $2.5 million, compared to a net loss before income taxes of $1.2 million in the same period last year. $1.1 million of the $3.7 million year-over-year increase in earnings and revenue was the result of the new accounting policy on securitization of leases.
Same store sales increased $5.6 million or 9.6% in the nine-month period year-over-year. While the disposal of the Trenton Chrysler dealership early in the first quarter of 2002 represented a loss of $8.0 million in revenues over the first three quarters of 2002, revenues for the nine-month period totalled $64.6 million, down just $2.4 million from the same period last
Fully diluted after-tax earnings for the nine months were $0.07 per share, compared to a basic and fully diluted loss per share of $0.04 in fiscal 2001.
cars4U.com offers a full range of new and used automobiles for lease or purchase directly from its new car dealerships, through its long standing Toronto-based leasing and wholesale car companies or through its eDealer at www.cars4U.com. For more information visit www.cars4U.com or www.cars4Ultd.com.