Universal Automotive Industries, Inc. Announces Double Digit Full Year Sales Growth Despite Fourth Quarter Decline

Apr 16, 2001, 01:00 ET from Universal Automotive Industries, Inc.

    CHICAGO, April 16 /PRNewswire/ -- Universal Automotive Industries, Inc.
 (Nasdaq: UVSL and UVSLW) today reported 2000 sales from its base brake
 products distribution business in the US grew 18.5% to $65.4 million compared
 to $55.2 million in the same period in 1999.  This year-to-year growth was
 accomplished in the face of a difficult sales environment in the automotive
 aftermarket in the fourth quarter.  Fourth quarter sales of the base brake
 products business declined 14% to $12.7 million for 2000 from $14.8 million in
 the fourth quarter of 1999 (after excluding sales of the Canadian distribution
 business that was sold as of December 31, 1999).  Total net sales for the year
 ended December 31, 2000 were $70.048 million or 3.3% greater than total net
 sales for the full year 1999, which reflects the base brake business sales
 gains offset by a 28% decrease in non-brake sales of commodity items and lack
 of sales of the Canadian distribution business that was sold as of December
 31, 1999.
     Operating income from the continuing US distribution business (excluding
 one-time charges) for the full year of 2000 was $1,846 thousand.  It was
 virtually flat with the same period in 1999 despite our sales gains, due
 principally to increased cost of freight and increased selling and marketing
 costs related to obtaining new customers.  This operating income together with
 the operating income from the Company's commodity business of $278 thousand
 and one-time charges incurred totaling $1,839 thousand resulted in total
 operating income of $285 thousand for the year ended December 31, 2000.  The
 one-time charges included costs related to the realignment of the Canadian
 friction manufacturing facility to improve efficiency and capacity, under
 absorption of manufacturing costs due to the start up of the new Virginia
 manufacturing facility that was brought on line to support our planned growth
 in the friction product segment of the market, costs related to the start-up
 of the Company's e-commerce subsidiary, eParts eXchange, Inc., and cost of
 severance payments to certain terminated employees.  For the fourth quarter of
 2000, the operating loss from the continuing US distribution business
 (excluding one-time charges of $778 thousand) was $659 thousand compared to
 operating income of $134 thousand for the 1999 fourth quarter.
     Arvin Scott commented, "We have now in place manufacturing assets
 positioned and configured to allow us to pursue our growth objectives in the
 friction products segment of the aftermarket.  We have made a significant
 investment in these assets in 2000 as we realigned existing friction
 facilities, brought on line our Virginia friction facility and recently
 completed the move of our rotor facility closer to its source of supply to
 gain significant cost reductions."  Mr. Scott continued, "We have also met the
 challenges of the soft automotive aftermarket head-on as we reduced our
 staffing and implemented other cost savings.  Despite the weakness in the
 marketplace, we have secured new customers and have been able to maintain our
 market share.  We remain committed to our proven strategy of rendering Maximum
 Value to our customers."
     This news release contains certain 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, which are intended to
 be covered by safe harbors created hereby.  Such forward-looking statements
 involve known and unknown risks, uncertainties (including those risk factors
 referenced in the Company's filings with the Securities and Exchange
 Commission), and other factors that may cause the actual results, performance
 or achievements of the Company to be materially different from any future
 results, performance, or achievements of the Company expressed or implied by
 such forward-looking statements.
 
 
     ($000's)            Quarter Ended December 31,    Year Ended December 31,
     CONTINUING
      OPERATIONS             2000          1999          2000          1999
 
     Net Sales:
       Brake parts          $12,711       $14,776      $65,414       $55,201
        - US Distribution
       Brake parts
        - Canadian
     Distribution
      (sold 12/31/99)             0         1,099            0         6,142
       Non brake parts          898           961        4,634         6,416
       Total                $13,609       $16,836      $70,048       $67,759
 
     Gross Profit:
       Brake parts
        - US Distribution    $2,302        $3,251      $14,324       $12,424
       Brake parts
        - Canadian
     Distribution
      (sold 12/31/99)             0           351            0         1,260
        Non brake parts          84            56          503           696
        One-time charges       (493)         (101)      (1,289)         (160)
        Total                $1,893        $3,557      $13,538       $14,220
 
     Operating Income:
       Brake parts
        - US Distribution     $(659)         $134       $1,846        $1,894
       Brake parts
        - Canadian
     Distribution
      (sold 12/31/99)             0            73            0            (9)
       Non brake parts           32            16          278           586
       One-time charges        (778)         (101)      (1,839)         (160)
       Total                $(1,405)         $122         $285        $2,311
 
     Interest and other         626           584        2,468         2,015
     (Gain) Loss on Sale
      of Assets                  79        (1,153)         110        (1,153)
     Income taxes                (4)          219          (33)          398
     Net Income (Loss)
      from Continuing
      Operations            $(2,106)         $472      $(2,260)       $1,051
     Basic Net Income
      (Loss) Per Share
      from Continuing
      Operations             $(0.30)        $0.07       $(0.32)        $0.15
     Basic Weighted
      Average Common
      Shares Outstanding                             7,008,438     6,789,582
 
 

SOURCE Universal Automotive Industries, Inc.
    CHICAGO, April 16 /PRNewswire/ -- Universal Automotive Industries, Inc.
 (Nasdaq: UVSL and UVSLW) today reported 2000 sales from its base brake
 products distribution business in the US grew 18.5% to $65.4 million compared
 to $55.2 million in the same period in 1999.  This year-to-year growth was
 accomplished in the face of a difficult sales environment in the automotive
 aftermarket in the fourth quarter.  Fourth quarter sales of the base brake
 products business declined 14% to $12.7 million for 2000 from $14.8 million in
 the fourth quarter of 1999 (after excluding sales of the Canadian distribution
 business that was sold as of December 31, 1999).  Total net sales for the year
 ended December 31, 2000 were $70.048 million or 3.3% greater than total net
 sales for the full year 1999, which reflects the base brake business sales
 gains offset by a 28% decrease in non-brake sales of commodity items and lack
 of sales of the Canadian distribution business that was sold as of December
 31, 1999.
     Operating income from the continuing US distribution business (excluding
 one-time charges) for the full year of 2000 was $1,846 thousand.  It was
 virtually flat with the same period in 1999 despite our sales gains, due
 principally to increased cost of freight and increased selling and marketing
 costs related to obtaining new customers.  This operating income together with
 the operating income from the Company's commodity business of $278 thousand
 and one-time charges incurred totaling $1,839 thousand resulted in total
 operating income of $285 thousand for the year ended December 31, 2000.  The
 one-time charges included costs related to the realignment of the Canadian
 friction manufacturing facility to improve efficiency and capacity, under
 absorption of manufacturing costs due to the start up of the new Virginia
 manufacturing facility that was brought on line to support our planned growth
 in the friction product segment of the market, costs related to the start-up
 of the Company's e-commerce subsidiary, eParts eXchange, Inc., and cost of
 severance payments to certain terminated employees.  For the fourth quarter of
 2000, the operating loss from the continuing US distribution business
 (excluding one-time charges of $778 thousand) was $659 thousand compared to
 operating income of $134 thousand for the 1999 fourth quarter.
     Arvin Scott commented, "We have now in place manufacturing assets
 positioned and configured to allow us to pursue our growth objectives in the
 friction products segment of the aftermarket.  We have made a significant
 investment in these assets in 2000 as we realigned existing friction
 facilities, brought on line our Virginia friction facility and recently
 completed the move of our rotor facility closer to its source of supply to
 gain significant cost reductions."  Mr. Scott continued, "We have also met the
 challenges of the soft automotive aftermarket head-on as we reduced our
 staffing and implemented other cost savings.  Despite the weakness in the
 marketplace, we have secured new customers and have been able to maintain our
 market share.  We remain committed to our proven strategy of rendering Maximum
 Value to our customers."
     This news release contains certain 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, which are intended to
 be covered by safe harbors created hereby.  Such forward-looking statements
 involve known and unknown risks, uncertainties (including those risk factors
 referenced in the Company's filings with the Securities and Exchange
 Commission), and other factors that may cause the actual results, performance
 or achievements of the Company to be materially different from any future
 results, performance, or achievements of the Company expressed or implied by
 such forward-looking statements.
 
 
     ($000's)            Quarter Ended December 31,    Year Ended December 31,
     CONTINUING
      OPERATIONS             2000          1999          2000          1999
 
     Net Sales:
       Brake parts          $12,711       $14,776      $65,414       $55,201
        - US Distribution
       Brake parts
        - Canadian
     Distribution
      (sold 12/31/99)             0         1,099            0         6,142
       Non brake parts          898           961        4,634         6,416
       Total                $13,609       $16,836      $70,048       $67,759
 
     Gross Profit:
       Brake parts
        - US Distribution    $2,302        $3,251      $14,324       $12,424
       Brake parts
        - Canadian
     Distribution
      (sold 12/31/99)             0           351            0         1,260
        Non brake parts          84            56          503           696
        One-time charges       (493)         (101)      (1,289)         (160)
        Total                $1,893        $3,557      $13,538       $14,220
 
     Operating Income:
       Brake parts
        - US Distribution     $(659)         $134       $1,846        $1,894
       Brake parts
        - Canadian
     Distribution
      (sold 12/31/99)             0            73            0            (9)
       Non brake parts           32            16          278           586
       One-time charges        (778)         (101)      (1,839)         (160)
       Total                $(1,405)         $122         $285        $2,311
 
     Interest and other         626           584        2,468         2,015
     (Gain) Loss on Sale
      of Assets                  79        (1,153)         110        (1,153)
     Income taxes                (4)          219          (33)          398
     Net Income (Loss)
      from Continuing
      Operations            $(2,106)         $472      $(2,260)       $1,051
     Basic Net Income
      (Loss) Per Share
      from Continuing
      Operations             $(0.30)        $0.07       $(0.32)        $0.15
     Basic Weighted
      Average Common
      Shares Outstanding                             7,008,438     6,789,582
 
 SOURCE  Universal Automotive Industries, Inc.