Business Editors
PHOENIX--(BUSINESS WIRE)--July 28, 1999--Ugly Duckling
Corporation (Nasdaq NM: UGLY) today reported results from operations
for the three and six months ended June 30, 1999.
For the quarter, earnings from continuing operations totaled $1.5
million, or $0.10 per diluted share, compared with $2.9 million, or
$0.16 per diluted share, for the second quarter of 1998. Second
quarter 1998 results included $3.7 million in pre-tax earnings, or
$0.12 per diluted share, from the gain on sale of loans; no such gain
was recorded in the second quarter of 1999. Total revenues for the
quarter increased 42% to $125.7 million over the $88.7 million
reported for the same period a year ago.
For the six-month period ended June 30, 1999, earnings from
continuing operations were $1.9 million, or $0.12 per diluted share,
compared with $6.7 million, or $0.35 per diluted share, for the same
six-month period of 1998. The six-month results for 1998 include $8.3
million in pre-tax earnings, or $0.26 per diluted share, from the
gains on sales of loans. No gains on the sales of loans were recorded
in the comparable period in 1999. Total revenues for the period
increased 45% to $255.9 million over the $176.4 million for the same
period a year ago.
Operating results from discontinued operations were break-even
for both the three and six-month periods ended June 30, 1999 and the
three-month period ended June 30, 1998. Losses from discontinued
operations for the six months ended June 30, 1998 totaled $5.6
million, or ($.29) per diluted share.
Ugly Duckling also announced that Greg Sullivan, President and
Chief Operating Officer of the Company since 1996, has been appointed
Chief Executive Officer by the Board of Directors. Mr. Sullivan
replaces Ernie Garcia, who will remain as Chairman of the Board and
the Company's largest stockholder with over 32% of the Company's
stock.
"Greg has done an excellent job running the operations of the
Company the past few years," said Mr. Garcia. "We have made tremendous
strides over this time and a lot of this is due to Greg's leadership
and direction. I am very confident that the Company will continue to
make progress with Greg as CEO."
Mr. Garcia went on to say, "Ugly Duckling remains my most
significant investment. My stepping down is a reflection of my
confidence in Greg and the Company. While I expect to continue to be
very involved with Ugly Duckling as Chairman, I believe that Greg has
proven his effectiveness in managing the day to day operations of the
Company and with this responsibility should come the CEO position."
Mr. Sullivan said, "We have developed a very strong management
team focused on operating and growing our Ugly Duckling Car Sales and
Finance operations. As our second quarter results demonstrate, we are
making good progress in our operational results. Our business is an
excellent one. We are the largest of our kind in what is a very large
industry. We are excited about our prospects and look forward to
producing solid returns for our stockholders."
The Company also announced that it had completed Y2K software
remediation and testing of its significant software based systems and
believes they are Y2K compliant. It also announced that it has rolled
out significant enhancements to its Internet web-site
(www.uglyduckling.com) and has established an Internet based marketing
capability. For the second quarter the Company received over 2,000
applications over the Internet leading to the sale of 180 units or
approximately $1.5 million in additional revenues. The Company expects
to more aggressively market the Internet capability and incorporate
this capability in its future-marketing initiatives. |
