The Industry's Leading Source For F&I, Sales And Technology

Top News

Smart Choice Automotive Group 256% Increase in 2Q Earnings

December 15, 2000

Smart Choice Automotive Group, Inc., which sells and finances used cars in Florida

and Texas, has announced higher sales and earnings for the second quarter

and first half of fiscal 2001.

For the three months ended Oct. 31, 2000, sales of used cars increased 200 percent to $50.5 million, compared with sales of $16.8 million in the second quarter of the previous fiscal year.

Interest income rose 237 percent to $9.5 million, versus $2.8 million in the quarter ended Oct. 31, 1999.

Net income increased 256% to $833,000, or $0.08 per diluted share, in the most recent quarter, compared with $234,000, or $0.03 per diluted share, in the second quarter of FY2000.

Diluted earnings per share were calculated on 9,814,000 weighted average diluted shares outstanding for the quarter ended

Oct. 31, 2000, versus 7,355,000 diluted shares outstanding in the year-earlier quarter.

Sales of used cars increased 160 percent to $94.3 million in the six months ended

Oct. 31, 2000, versus sales of $36.3 million for the six months ended October 31, 1999.

Interest income increased 232 percent to $18.9 million in the first half of FY2001, compared with $5.7 million in the first half of FY2000.

Net income for the first half of FY2001 totaled $2,235,000, or $0.23 per diluted share, which represented a 408 percent increase when compared with net income of $440,000, or $0.06 per diluted share, in the corresponding period of the previous fiscal year.

Diluted earnings per share were calculated on

9,794,000 weighted average diluted shares outstanding for the six months ended Oct. 31, 2000, versus 7,355,000 diluted shares outstanding in the year earlier period.

"The significant gains in revenues and earnings during the second quarter and first half of Fiscal 2001 were in line with management's expectations," said Ed Ernst, CEO of Smart Choice Automotive Group, Inc. "Our focus has been upon improving operating efficiencies and portfolio performance at our automotive sales/finance subsidiaries, and I am pleased to

report that our Texas-based PAACO subsidiary turned in an outstanding performance during the most recent quarter. PAACO also opened its third used-car dealership in Houston earlier this year, further solidifying its position

as the largest retailer of used cars to Latino customers in that market.

"Our Smart Choice subsidiary in Florida continues to pursue an optimum relationship

between sales and portfolio performance which will allow it to achieve management's long-term objectives as a provider of quality transportation to subprime customers in that state," Ernst said.

"Despite predictions of a slowdown in the national economy in coming months, we are optimistic regarding the balance of our fiscal year. The used-car industry typically performs well during sluggish economic periods, and we see no reason why this should change in the current business cycle."

About Smart Choice Automotive Group, Inc.

Smart Choice Automotive Group, Inc. sells and finances used cars in the states of Florida and Texas. The company, which is headquartered in

Titusville, Fla., currently operates 12 used car dealerships in Florida under the name First Choice and 13 dealerships in Texas under the name PAACO Automotive Group, Inc. Its common stock trades on the OTC Bulletin Board under the symbol "SCHA."

For more information, contact Ed Ernst, CEO at (321) 269-0834.

Your Comment

Please note that comments may be moderated. 
Leave this field empty:
Your Name:  
Your Email: