Exhibit 99.1
LITHIA MOTORS REPORTS THIRD QUARTER 2010 EARNINGS OF $0.37 PER SHARE, INTRODUCES 2011 GUIDANCE IN RANGE OF $1.03-1.11 PER SHARE
Medford, Oregon, October 27, 2010 (1:05 p.m. PT) – Lithia Motors, Inc. (NYSE: LAD) today reported 2010 third quarter net income from continuing operations of $0.37 per diluted share. This compares to a 2009 adjusted third quarter net income from continuing operations of $0.40 per diluted share. The results include 23% more shares outstanding in 2010 compared to 2009 primarily due to the equity offering at the end of 2009. Third quarter 2010 revenue from continuing operations increased 15% to $582.7 million, compared to $508.0 million in the year-ago period, mainly driven by improved vehicle sales.
Third Quarter Operating Highlights:
· Total same store sales increased 12%, including increases of 8% in new vehicle sales and 2.5% in service, body and parts sales
· Same store used vehicle retail sales increased 20% and the used retail to new vehicle unit sales ratio was 1.05 : 1
· Selling, general & administrative costs as a percent of gross profit was 74%, an improvement of 70 basis points over the prior year
· Repurchased approximately 100,000 shares in the quarter
· Unfinanced new vehicle inventory totaled $65.2 million at the end of the quarter, an increase of $33.6 million from June 30, 2010
Sid DeBoer, Lithia’s Chairman and CEO, commented, “Our continued focus on operations and improving our performance in all business lines is evident in our third quarter results. Despite a difficult comparison due to the Cash for Clunkers program last year, we grew same store sales in all categories. Lithia’s store leaders are responding to our customers’ needs and local competition quickly and decisively. Our information systems and centralized administrative processes allow our team more time to do what they do best – service our customers.”
As shown in the attached reconciliation table, the 2009 third quarter adjusted results from continuing operations exclude non-core charges of $(0.07) per share on asset impairments. Unadjusted, net income from continuing operations for the third quarter of 2009 was $7.0 million, or $0.33 per diluted share.
For the nine-month period ended September 30, 2010, total revenues increased 16% to $1.6 billion as compared to $1.4 billion in the same period last year. Same store new vehicle sales increased 15%, retail used vehicle sales increased 19% and service, body and parts sales decreased 1%. For the first nine months, Lithia’s adjusted income from continuing operations, net of tax, and excluding non-core charges and gains was $0.74 per share as compared to $0.62 per share in 2009. Unadjusted, net income from continuing operations for the first nine months was $0.37 per diluted share, compared to net income from continuing operations of $0.42 per diluted share for the same period last year.
Balance Sheet Update
Lithia ended the period with $110.9 million in immediately available funds, including $15.3 million in cash, $30.4 million in availability on its revolving credit facility, and $65.2 million in unfinanced new vehicle inventory.
Dividend Payment
Lithia announced that the Board of Directors has approved a dividend of $0.05 per share for the third quarter 2010. Lithia will pay the dividend November 26th to shareholders of record on November 12th, 2010.
Outlook for 2010 and 2011
Lithia is increasing 2010 fourth quarter earnings guidance to a range of $0.11 to $0.13 per diluted share, for full-year 2010 earnings in a range of $0.84 to $0.86 per diluted share. Both projections are based on the following annual assumptions:
· Total revenues in range of $1.95 to $2.0 billion
· New vehicle same store sales increasing 15.7%
· New vehicle gross margin ranging from 8.1% to 8.3%
· Used vehicle same store sales increasing 16.6%
· Used vehicle gross margin ranging from 14.2% to 14.5%
· Service body and parts same store sales decreasing 0.6%
· Service body and parts gross margin ranging from 48.4% to 48.7%
· Finance and insurance gross profit of $955 per unit
· Tax rate of 40%
· Estimated average diluted shares outstanding of 26.3 million
· Capital expenditures of approximately $9.3 million
· Chrysler market share consistent with full year 2009 levels
· Guidance excludes the impact of future acquisitions, dispositions, and any potential non-core items
Lithia projects its 2011 first quarter earnings guidance within a range of $0.15 to $0.17 per diluted share. Full-year 2011 earnings guidance is projected within a range of $1.03 to $1.11 per diluted share. Both projections are based on the following annual assumptions:
· Total revenues in range of $2.2 to $2.35 billion
· New vehicle same store sales increasing 10.0%
· New vehicle gross margin ranging from 8.0% to 8.2%
· Used vehicle same store sales increasing 8.8%
· Used vehicle gross margin ranging from 14.0% to 14.3%
· Service body and parts same store sales increasing 1.9%
· Service body and parts gross margin ranging from 48.6% to 48.9%
· Finance and insurance gross profit of $970 per unit
· Tax rate of 40%
· Estimated average diluted shares outstanding of 26.9 million
· Capital expenditures of approximately $10.6 million
· Guidance excludes the impact of future acquisitions, dispositions, and any potential non-core items
Third Quarter Earnings Conference Call and Updated Presentation
The third quarter conference call may be accessed at 2:00 p.m. PT today by telephone at (877) 407-8029 (Conference ID: 358497). An updated presentation highlighting the third quarter results has been added to Investor Relations on www.lithia.com.
To listen live on our website or for replay, visit Investor Relations on www.lithia.com and click on the conference call icon. A playback of the conference call will be available after 5:00 p.m. PT on October 27, 2010 through November 3, 2010 by calling 877-660-6853 (Conference ID: 358497 Account: 305).
About Lithia
Lithia Motors, Inc. is the ninth largest automotive retailer in the United States and a Fortune 800 company. Lithia sells 26 brands of new and all brands of used vehicles at 85 stores, which are located in 12 states. Lithia also sells used vehicles; arranges finance, warranty, and credit insurance contracts; and provides vehicle parts, maintenance, and repair services at all of its locations.
For additional information on Lithia Motors, contact the Investor Relations Department at (541) 618-5748 or visit www.lithia.com and click on “Investor Relations.”
Sites
www.lithia.com
www.lithiacares.com
www.lithiajobs.com
Lithia Motors on Facebook
http://www.facebook.com/profile.php?id=1270221622&ref=ts
Lithia Life on Facebook
http://www.facebook.com/pages/Lithia-Lifecom/34360183908?ref=ts
Lithia Life on YouTube
http://www.youtube.com/user/LithiaLife
Lithia Life on Twitter
http://twitter.com/LithiaLife
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. Forward-looking statements in this press release include our guidance regarding fourth quarter and full year 2010 results and first quarter and full year 2011 results, our ability to utilize our information systems and the leverage produced by our centralized administrative operations. Forward looking statements include statements regarding our goals, plans, projections and guidance regarding our financial position, results of operations, market position, pending and potential future acquisitions and business strategy, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks" or "will." These statements are necessarily subject to risk and uncertainty and actual results could differ materially due to certain risk factors, including without limitation, future economic conditions and others set forth from time to time in the company's filings with the SEC. We urge you to carefully consider this information. We undertake no duty to update our forward-looking statements, including our earnings outlook.
Non-GAAP Financial Measures
This press release and the attached financial tables contain certain non-GAAP financial measures as defined under SEC rules, such as adjusted net income and diluted earnings per share from continuing operations, adjusted SG&A as a percentage of revenues and gross profit, adjusted operating margin, adjusted operating profit as a percentage of gross profit and adjusted pre-tax margin adjusted to exclude certain items disclosed in the attached financial tables. Cash flows from operations were adjusted to include the change in non-trade floorplan debt to improve the visibility of cash flows related to vehicle financing. As required by SEC rules, the Company has provided reconciliations of these measures to the most directly comparable GAAP measures, which are set forth in the attachments to this release. The Company believes that each of the foregoing non-GAAP financial measures improves the transparency of the Company's disclosure, provides a meaningful presentation of the Company's results from its core business operations excluding adjustments for items not related to the Company's ongoing core business operations or other non-cash adjustments, and improves the period-to-period comparability of the Company's results from its core business operations. These presentations are not intended to provide net income, cash flows from operations, operating income or selling, general and administrative costs in accordance with GAAP and should not be considered an alternative to GAAP measures.
Lithia Motors, Inc.
Consolidated Statement of Operations (Unaudited)
(In thousands except per share data)
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| |||
| Three Months Ended |
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| |||
| September 30, |
| Increase |
| % Increase |
| |||
| 2010 |
| 2009 |
| (Decrease) |
| (Decrease) |
| |
Revenues: |
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|
|
|
|
| |
New vehicle sales | $ 293,237 |
| $ 266,769 |
| $ 26,468 |
| 9.9 | % | |
Used vehicle sales | 189,667 |
| 150,080 |
| 39,587 |
| 26.4 |
| |
Finance and insurance | 18,928 |
| 15,704 |
| 3,224 |
| 20.5 |
| |
Service, body and parts | 77,733 |
| 74,538 |
| 3,195 |
| 4.3 |
| |
Fleet and other | 3,122 |
| 895 |
| 2,227 |
| 248.8 |
| |
Total revenues | 582,687 |
| 507,986 |
| 74,701 |
| 14.7 |
| |
Cost of sales: |
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|
|
|
|
|
| |
New vehicle sales | 269,018 |
| 242,963 |
| 26,055 |
| 10.7 |
| |
Used vehicle sales | 166,368 |
| 130,322 |
| 36,046 |
| 27.7 |
| |
Service, body and parts | 39,673 |
| 38,611 |
| 1,062 |
| 2.8 |
| |
Fleet and other | 2,684 |
| 597 |
| 2,087 |
| 349.6 |
| |
Total cost of sales | 477,743 |
| 412,493 |
| 65,250 |
| 15.8 |
| |
Gross profit | 104,944 |
| 95,493 |
| 9,451 |
| 9.9 |
| |
|
|
|
|
|
|
|
|
| |
Asset impairment charges | - |
| 1,967 |
| (1,967) |
| (100.0) |
| |
SG&A expense | 77,468 |
| 71,557 |
| 5,911 |
| 8.3 |
| |
Depreciation and amortization | 4,238 |
| 3,883 |
| 355 |
| 9.1 |
| |
Income from operations | 23,238 |
| 18,086 |
| 5,152 |
| 28.5 |
| |
|
|
|
|
|
|
|
|
| |
Floorplan interest expense | (3,085) |
| (3,053) |
| 32 |
| 1.0 |
| |
Other interest expense | (3,725) |
| (3,291) |
| 434 |
| 13.2 |
| |
Other income, net | 73 |
| 25 |
| 48 |
| 192.0 |
| |
Income from continuing operations before income taxes | 16,501 |
| 11,767 |
| 4,734 |
| 40.2 |
| |
|
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|
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|
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| |
Income tax expense | 6,709 |
| 4,792 |
| 1,917 |
| 40.0 |
| |
Income tax rate | 40.7% |
| 40.7% |
|
|
|
|
| |
Income from continuing operations | $ 9,792 |
| $ 6,975 |
| $ 2,817 |
| 40.4 | % | |
|
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|
|
|
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| |
Loss from discontinued operations, net of income tax | - |
| (1,262) |
| 1,262 |
| 100.0 |
| |
Net income | $ 9,792 |
| $ 5,713 |
| $ 4,079 |
| 71.4 | % | |
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Diluted net income (loss) per share: |
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Continuing operations | $ 0.37 |
| $ 0.33 |
| $ 0.04 |
| 12.1 | % | |
Discontinued operations | - |
| (0.06) |
| 0.06 |
| 100.0 |
| |
Net income per share | $ 0.37 |
| $ 0.27 |
| $ 0.10 |
| 37.0 | % | |
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Diluted shares outstanding | 26,328 |
| 21,448 |
| 4,880 |
| 22.8 | % | |
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Lithia Motors, Inc.
Key Performance Metrics (Unaudited)
| Three Months Ended |
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| September 30, |
| Increase |
| % Increase |
| ||||
| 2010 |
| 2009 |
| (Decrease) |
| (Decrease) |
| ||
Gross margin |
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New vehicle retail | 8.3 | % | 8.9 | % | (60) bps |
|
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Used vehicle retail | 14.7 |
| 15.2 |
| (50) bps |
|
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| ||
Used vehicle wholesale | 0.1 |
| 0.1 |
| - bps |
|
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| ||
Finance & insurance | 100.0 |
| 100.0 |
| - bps |
|
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| ||
Service, body & parts | 49.0 |
| 48.2 |
| 80 bps |
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Gross profit margin | 18.0 |
| 18.8 |
| (80) bps |
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Unit sales |
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New vehicle retail | 9,232 |
| 9,278 |
| (46) |
| (0.5) | % | ||
Used vehicle retail | 9,705 |
| 8,000 |
| 1,705 |
| 21.3 |
| ||
Used vehicle wholesale | 4,066 |
| 4,178 |
| (112) |
| (2.7) |
| ||
Total units sold | 23,003 |
| 21,456 |
| 1,547 |
| 7.2 |
| ||
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Average selling price |
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New vehicle retail | $ 31,763 |
| $ 28,753 |
| $ 3,010 |
| 10.5 | % | ||
Used vehicle retail | 16,362 |
| 16,232 |
| 130 |
| 0.8 |
| ||
Used vehicle wholesale | 7,592 |
| 4,840 |
| 2,752 |
| 56.9 |
| ||
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Average gross profit per unit |
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New vehicle retail | $ 2,623 |
| $ 2,566 |
| $ 57 |
| 2.2 | % | ||
Used vehicle retail | 2,397 |
| 2,468 |
| (71) |
| (2.9) |
| ||
Used vehicle wholesale | 8 |
| 4 |
| 4 |
| 100.0 |
| ||
Finance & insurance | 1,000 |
| 909 |
| 91 |
| 10.0 |
| ||
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Revenue mix |
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New vehicle retail | 50.3 | % | 52.5 | % |
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Used vehicle retail | 27.3 |
| 25.6 |
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Used vehicle wholesale | 5.4 |
| 3.9 |
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Finance & insurance, net | 3.2 |
| 3.1 |
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Service, body & parts | 13.3 |
| 14.7 |
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Fleet and other | 0.5 |
| 0.2 |
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| Adjusted |
| As reported |
| ||||||
| Three Months Ended |
| Three Months Ended |
| ||||||
| September 30, |
| September 30, |
| ||||||
Other metrics | 2010 |
| 2009 |
| 2010 |
| 2009 |
| ||
SG&A as a % of revenue | 13.3 | % | 14.0 | % | 13.3 | % | 14.1 | % | ||
SG&A as a % of gross profit | 73.8 |
| 74.5 |
| 73.8 |
| 74.9 |
| ||
Operating profit as a % of revenue | 4.0 |
| 4.0 |
| 4.0 |
| 3.6 |
| ||
Operating profit as a % of gross profit | 22.1 |
| 21.4 |
| 22.1 |
| 18.9 |
| ||
Pretax margin | 2.8 |
| 2.8 |
| 2.8 |
| 2.3 |
| ||
Lithia Motors, Inc.
Key Performance Metrics (Unaudited)
| Three Months Ended |
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| September 30, |
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| 2010 |
| 2009 |
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New vehicle unit sales brand mix |
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Chrysler | 29.0 | % | 28.5 | % |
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General Motors | 15.7 |
| 15.4 |
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Toyota | 13.0 |
| 15.5 |
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Honda | 8.2 |
| 8.5 |
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Ford | 6.1 |
| 4.6 |
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Hyundai | 5.9 |
| 6.6 |
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Subaru | 5.7 |
| 6.0 |
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BMW | 5.1 |
| 4.3 |
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Volkswagen, Audi | 4.0 |
| 3.2 |
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Nissan | 3.4 |
| 4.5 |
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Kia | 2.0 |
| 1.0 |
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Mercedes | 1.3 |
| 1.0 |
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Other | 0.6 |
| 0.9 |
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Same store revenue changes |
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New vehicle retail | 8.0 | % | (13.5) | % |
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Used vehicle retail | 19.8 |
| 3.1 |
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Used vehicle wholesale | 51.8 |
| (17.7) |
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Finance & insurance | 18.8 |
| (23.7) |
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Service, body & parts | 2.5 |
| (2.2) |
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Total sales (excluding fleet) | 12.2 |
| (8.7) |
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Same store gross profit changes |
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New vehicle retail | (0.3) | % | 1.8 | % |
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Used vehicle retail | 16.5 |
| 51.3 |
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Used vehicle wholesale | 113.8 |
| (102.9) |
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Service, body & parts | 3.9 |
| (2.6) |
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Total gross profit (excluding fleet) | 7.6 |
| 3.0 |
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Current store count | # of stores |
| % of total |
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Chrysler | 23 |
| 27.1 | % |
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General Motors | 12 |
| 14.1 |
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Honda | 8 |
| 9.4 |
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Toyota | 8 |
| 9.4 |
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Hyundai | 6 |
| 7.0 |
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BMW | 6 |
| 7.0 |
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Ford | 4 |
| 4.7 |
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Volkswagen, Audi | 4 |
| 4.7 |
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Nissan | 4 |
| 4.7 |
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Subaru | 2 |
| 2.4 |
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Kia | 2 |
| 2.4 |
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Mercedes | 1 |
| 1.2 |
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Other | 5 |
| 5.9 |
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| |
| 85 |
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Lithia Motors, Inc.
Consolidated Statement of Operations (Unaudited)
(In thousands except per share data)
|
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|
|
|
| |||
| Nine Months Ended |
|
|
|
|
| |||
| September 30, |
| Increase |
| % Increase |
| |||
| 2010 |
| 2009 |
| (Decrease) |
| (Decrease) |
| |
Revenues: |
|
|
|
|
|
|
|
| |
New vehicle sales | $ 777,575 |
| $ 670,835 |
| $ 106,740 |
| 15.9 | % | |
Used vehicle sales | 521,437 |
| 419,689 |
| 101,748 |
| 24.2 |
| |
Finance and insurance | 49,840 |
| 44,098 |
| 5,742 |
| 13.0 |
| |
Service, body and parts | 218,526 |
| 219,807 |
| (1,281) |
| (0.6) |
| |
Fleet and other | 8,629 |
| 2,090 |
| 6,539 |
| 312.9 |
| |
Total revenues | 1,576,007 |
| 1,356,519 |
| 219,488 |
| 16.2 |
| |
Cost of sales: |
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|
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|
|
| |
New vehicle sales | 712,857 |
| 612,942 |
| 99,915 |
| 16.3 |
| |
Used vehicle sales | 457,625 |
| 367,536 |
| 90,089 |
| 24.5 |
| |
Service, body and parts | 111,541 |
| 113,900 |
| (2,359) |
| (2.1) |
| |
Fleet and other | 7,392 |
| 1,078 |
| 6,314 |
| 585.7 |
| |
Total cost of sales | 1,289,415 |
| 1,095,456 |
| 193,959 |
| 17.7 |
| |
Gross profit | 286,592 |
| 261,063 |
| 25,529 |
| 9.8 |
| |
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| |
Asset impairment charges | 14,751 |
| 7,164 |
| 7,587 |
| 105.9 |
| |
SG&A expense | 223,320 |
| 209,469 |
| 13,851 |
| 6.6 |
| |
Depreciation and amortization | 13,389 |
| 11,943 |
| 1,446 |
| 12.1 |
| |
Income from operations | 35,132 |
| 32,487 |
| 2,645 |
| 8.1 |
| |
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| |
Floorplan interest expense | (8,403) |
| (8,628) |
| (225) |
| (2.6) |
| |
Other interest expense | (10,842) |
| (10,639) |
| 203 |
| 1.9 |
| |
Other income, net | 356 |
| 1,447 |
| (1,091) |
| (75.4) |
| |
Income from continuing operations before income taxes | 16,243 |
| 14,667 |
| 1,576 |
| (10.7) |
| |
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| |
Income tax expense | 6,522 |
| 5,937 |
| 585 |
| 9.9 |
| |
Income tax rate | 40.2 | % | 40.5 | % |
|
|
|
| |
Income from continuing operations | $ 9,721 |
| $ 8,730 |
| $ 991 |
| 11.4 | % | |
|
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| |
Income (loss) from discontinued operations, net of income tax | (381) |
| 1,975 |
| (2,356) |
| NM |
| |
Net income | $ 9,340 |
| $ 10,705 |
| $ (1,365) |
| (12.8) | % | |
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| |
Diluted net income (loss) per share: |
|
|
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|
|
|
|
| |
Continuing operations | $ 0.37 |
| $ 0.41 |
| $ (0.04) |
| (9.8) | % | |
Discontinued operations | (0.01) |
| 0.10 |
| (0.11) |
| NM |
| |
Net income per share | $ 0.36 |
| $ 0.51 |
| $ (0.15) |
| (29.4) | % | |
|
|
|
|
|
|
|
|
| |
Diluted shares outstanding | 26,191 |
| 21,124 |
| 5,067 |
| 24.0 | % | |
NM – not meaningful Lithia Motors, Inc.
Key Performance Metrics (Unaudited)
| Nine Months Ended |
|
|
|
|
| ||||
| September 30, |
| Increase |
| % Increase |
| ||||
| 2010 |
| 2009 |
| (Decrease) |
| (Decrease) |
| ||
Gross margin |
|
|
|
|
|
|
|
| ||
New vehicle retail | 8.3 | % | 8.6 | % | (30) bps |
|
|
| ||
Used vehicle retail | 14.3 |
| 14.2 |
| 10 bps |
|
|
| ||
Used vehicle wholesale | 0.9 |
| 0.8 |
| 10 bps |
|
|
| ||
Finance & insurance | 100.0 |
| 100.0 |
| - bps |
|
|
| ||
Service, body & parts | 49.0 |
| 48.2 |
| 80 bps |
|
|
| ||
Gross profit margin | 18.2 |
| 19.2 |
| (100) bps |
|
|
| ||
|
|
|
|
|
|
|
|
| ||
Unit sales |
|
|
|
|
|
|
|
| ||
New vehicle retail | 24,794 |
| 22,779 |
| 2,015 |
| 8.8 | % | ||
Used vehicle retail | 26,583 |
| 22,879 |
| 3,704 |
| 16.2 |
| ||
Used vehicle wholesale | 10,657 |
| 10,457 |
| 200 |
| 1.9 |
| ||
Total units sold | 62,034 |
| 56,115 |
| 5,919 |
| 10.5 |
| ||
|
|
|
|
|
|
|
|
| ||
Average selling price |
|
|
|
|
|
|
|
| ||
New vehicle retail | $ 31,361 |
| $ 29,450 |
| $ 1,911 |
| 6.5 | % | ||
Used vehicle retail | 16,610 |
| 15,962 |
| 648 |
| 4.1 |
| ||
Used vehicle wholesale | 7,498 |
| 5,211 |
| 2,287 |
| 43.9 |
| ||
|
|
|
|
|
|
|
|
| ||
Average gross profit per unit |
|
|
|
|
|
|
|
| ||
New vehicle retail | $ 2,610 |
| $ 2,541 |
| $ 69 |
| 2.7 | % | ||
Used vehicle retail | 2,374 |
| 2,261 |
| 113 |
| 5.0 |
| ||
Used vehicle wholesale | 66 |
| 40 |
| 26 |
| 65.0 |
| ||
Finance & insurance | 970 |
| 966 |
| 4 |
| 0.4 |
| ||
|
|
|
|
|
|
|
|
| ||
Revenue mix |
|
|
|
|
|
|
|
| ||
New vehicle retail | 49.3 | % | 49.5 | % |
|
|
|
| ||
Used vehicle retail | 28.0 |
| 26.9 |
|
|
|
|
| ||
Used vehicle wholesale | 5.1 |
| 3.9 |
|
|
|
|
| ||
Finance & insurance, net | 3.2 |
| 3.3 |
|
|
|
|
| ||
Service, body & parts | 13.9 |
| 16.2 |
|
|
|
|
| ||
Fleet and other | 0.5 |
| 0.2 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
| ||
| Adjusted |
| As reported |
| ||||||
| Nine Months Ended |
| Nine Months Ended |
| ||||||
| September 30, |
| September 30, |
| ||||||
Other metrics | 2010 |
| 2009 |
| 2010 |
| 2009 |
| ||
SG&A as a % of revenue | 14.1 | % | 15.4 | % | 14.2 | % | 15.4 | % | ||
SG&A as a % of gross profit | 77.6 |
| 79.9 |
| 77.9 |
| 80.2 |
| ||
Operating profit as a % of revenue | 3.2 |
| 3.0 |
| 2.2 |
| 2.4 |
| ||
Operating profit as a % of gross profit | 17.8 |
| 15.6 |
| 12.3 |
| 12.4 |
| ||
Pretax margin | 2.0 |
| 1.6 |
| 1.0 |
| 1.1 |
| ||
|
|
|
|
|
|
|
|
| ||
Lithia Motors, Inc.
Key Performance Metrics (Unaudited)
| Nine Months Ended |
|
|
|
|
| |||
| September 30, |
|
|
|
|
| |||
| 2010 |
| 2009 |
|
|
|
|
| |
New vehicle unit sales brand mix |
|
|
|
|
|
|
|
| |
Chrysler | 28.1 | % | 30.9 | % |
|
|
|
| |
General Motors | 16.5 |
| 16.1 |
|
|
|
|
| |
Toyota | 13.4 |
| 14.7 |
|
|
|
|
| |
Honda | 8.5 |
| 8.6 |
|
|
|
|
| |
Hyundai | 5.9 |
| 5.3 |
|
|
|
|
| |
Ford | 5.8 |
| 4.7 |
|
|
|
|
| |
Subaru | 5.5 |
| 5.1 |
|
|
|
|
| |
BMW | 5.3 |
| 4.7 |
|
|
|
|
| |
Volkswagen, Audi | 3.6 |
| 3.2 |
|
|
|
|
| |
Nissan | 3.5 |
| 4.0 |
|
|
|
|
| |
Kia | 2.0 |
| 0.6 |
|
|
|
|
| |
Mercedes | 1.1 |
| 1.0 |
|
|
|
|
| |
Other | 0.8 |
| 1.1 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
Same store revenue changes |
|
|
|
|
|
|
|
| |
New vehicle retail | 14.8 | % | (29.7) | % |
|
|
|
| |
Used vehicle retail | 18.8 |
| (2.2) |
|
|
|
|
| |
Used vehicle wholesale | 45.4 |
| (33.3) |
|
|
|
|
| |
Finance & insurance | 11.5 |
| (30.0) |
|
|
|
|
| |
Service, body & parts | (1.2) |
| (3.9) |
|
|
|
|
| |
Total sales (excluding fleet) | 14.4 |
| (20.3) |
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
Same store gross profit changes |
|
|
|
|
|
|
|
| |
New vehicle retail | 10.3 | % | (21.0) | % |
|
|
|
| |
Used vehicle retail | 24.1 |
| 21.7 |
|
|
|
|
| |
Used vehicle wholesale | 34.3 |
| (128.5) |
|
|
|
|
| |
Service, body & parts | 0.1 |
| (3.0) |
|
|
|
|
| |
Total gross profit (excluding fleet) | 8.9 |
| (8.6) |
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
Geographic revenue mix |
|
|
|
|
|
|
|
| |
Texas | 24.5 | % | 23.7 | % |
|
|
|
| |
Oregon | 15.2 |
| 16.6 |
|
|
|
|
| |
California | 11.3 |
| 11.6 |
|
|
|
|
| |
Alaska | 10.4 |
| 9.9 |
|
|
|
|
| |
Washington | 10.0 |
| 9.8 |
|
|
|
|
| |
Montana | 7.2 |
| 7.0 |
|
|
|
|
| |
Iowa | 7.0 |
| 7.1 |
|
|
|
|
| |
Idaho | 6.4 |
| 6.4 |
|
|
|
|
| |
Nevada | 4.1 |
| 4.0 |
|
|
|
|
| |
North Dakota | 2.1 |
| 1.8 |
|
|
|
|
| |
Colorado | 0.9 |
| 0.9 |
|
|
|
|
| |
New Mexico | 0.9 |
| 1.2 |
|
|
|
|
| |
Lithia Motors, Inc.
Consolidated Balance Sheet(Unaudited)
(In thousands except per share data)
| September 30, 2010 |
| December 31, 2009 |
Cash and cash equivalents | $ 15,301 |
| $ 12,776 |
Contracts in transit | 28,649 |
| 21,940 |
Trade receivables, net | 41,235 |
| 30,157 |
Inventory, net | 392,906 |
| 328,726 |
Vehicles leased to others | 8,253 |
| 7,384 |
Prepaid expenses and other | 3,059 |
| 5,387 |
Assets held for sale | - |
| 11,693 |
Total current assets | $ 489,403 |
| $ 418,063 |
|
|
|
|
Land and building, net | 313,290 |
| 326,625 |
Equipment and other, net | 49,700 |
| 59,429 |
Goodwill | 6,186 |
| - |
Intangible assets, net | 45,299 |
| 42,496 |
Other non-current assets | 8,817 |
| 7,752 |
Deferred income taxes | 42,394 |
| 40,735 |
Total assets | $ 955,089 |
| $ 895,100 |
|
|
|
|
Flooring notes payable | 223,949 |
| 210,488 |
Current maturities of line of credit | - |
| 24,000 |
Current maturities of other debt | 14,898 |
| 14,303 |
Trade payables | 24,957 |
| 18,782 |
Accrued liabilities | 59,793 |
| 47,518 |
Deferred income taxes | - |
| 1,036 |
Liabilities related to assets held for sale | - |
| 5,050 |
Total current liabilities | $ 323,597 |
| $ 321,177 |
|
|
|
|
Real estate debt | 237,056 |
| 230,265 |
Other long-term debt | 42,733 |
| 2,800 |
Deferred revenue | 19,963 |
| 17,981 |
Other long-term liabilities | 17,257 |
| 15,839 |
Total liabilities | $ 640,606 |
| $ 588,062 |
|
|
|
|
Class A common stock | 283,275 |
| 280,880 |
Class B common stock | 468 |
| 468 |
Additional paid-in capital | 10,644 |
| 10,501 |
Other comprehensive income | (5,676) |
| (3,850) |
Retained earnings | 25,772 |
| 19,039 |
Total liabilities & shareholders' equity | $ 955,089 |
| $ 895,100 |
Lithia Motors, Inc.
Summarized Cash Flow from Operations(Unaudited)
(In thousands)
| Nine Months Ended |
| ||
| September 30, |
| ||
| 2010 |
| 2009 |
|
Net income | $ 9,340 |
| $ 10,705 |
|
|
|
|
|
|
Adjustments to reconcile net income to cash provided by (used in) operating activities: |
|
|
|
|
Asset impairments | 14,751 |
| 7,164 |
|
Depreciation and amortization | 13,397 |
| 12,452 |
|
Amortization of debt discount | - |
| 48 |
|
Stock-based compensation | 1,450 |
| 1,584 |
|
Gain on early extinguishment of debt | - |
| (1,317) |
|
(Gain) loss on disposal of assets | 235 |
| (7,982) |
|
Deferred income taxes | (2,610) |
| 1,006 |
|
Excess tax deficit (benefit) from share-based | (89) |
| 45 |
|
(Increase) decrease, net of effect of acquisitions and divestitures |
|
|
|
|
Trade receivables, net | (11,045) |
| 11,032 |
|
Contracts in transit | (6,709) |
| 8,900 |
|
Inventories | (55,359) |
| 167,545 |
|
Vehicles leased to others | (1,870) |
| 696 |
|
Prepaid expenses and other | 2,564 |
| 19,136 |
|
Other non-current assets | (1,124) |
| 7 |
|
Increase (decrease), net of effect of acquisitions and divestitures |
|
|
|
|
Floorplan notes payable | 2,338 |
| (170,803) |
|
Trade payables | 6,167 |
| (431) |
|
Accrued liabilities | 11,181 |
| 4,680 |
|
Other long-term liabilities and | 623 |
| 9,016 |
|
Net cash provided by (used in) | $ (16,760) |
| $ 73,483 |
|
|
|
|
|
|
|
|
|
|
|
Lithia Motors, Inc.
Reconciliation of Non-GAAP Cash Flow from Operations(Unaudited)
(In thousands)
| Nine Months Ended |
| ||
| September 30, |
| ||
Net cash provided by (used in) operating activities | 2010 |
| 2009 |
|
As reported | $ (16,760) |
| $ 73,483 |
|
Floorplan notes payable, non-trade | 13,807 |
| 7,384 |
|
Adjusted | $ (2,953) |
| $ 80,867 |
|
Lithia Motors, Inc.
Other Highlights (Unaudited)
(In thousands except per share data)
| September 30, 2010 |
| December 31, 2009 |
|
|
|
|
| |
Other information |
|
|
|
|
|
|
|
| |
Lt debt/total cap | 47.2 | % | 43.2 | % |
|
|
|
| |
Adjusted Lt debt/total cap | 12.0 | % | 0.9 | % |
|
|
|
| |
Book value per outstanding share | $12.01 |
| $11.90 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
Debt covenant ratios |
|
|
|
|
|
|
|
| |
| Requirement |
| As of September 30, 2010 |
| |||||
Minimum tangible net worth | Not less than $200 million |
| $266.2 million |
| |||||
Vehicle equity | Not less than $65 million |
| $195.6 million |
| |||||
Fixed charge coverage ratio | Not less than 1.20 to 1 |
| 1.60 to 1 |
| |||||
Liabilities to tangible net worth ratio | Not more than 4.00 to 1 |
| 2.41 to 1 |
| |||||
Lithia Motors, Inc.
Reconciliation of Certain Non-GAAP Financial Measures (Unaudited)
(In thousands)
| Three months ended |
| Nine months ended |
| |||||
| 2010 |
| 2009 |
| 2010 |
| 2009 |
| |
Selling, general & administrative |
|
|
|
|
|
|
|
| |
As reported | $77,468 |
| $71,557 |
| $223,320 |
| $209,469 |
| |
Impairments and disposal gain | - |
| (393) |
| 365 |
| (956) |
| |
Lease termination and severance reserve | - |
| - |
| (1,334) |
| - |
| |
Adjusted | $77,468 |
| $71,164 |
| $222,351 |
| $208,513 |
| |
|
|
|
|
|
|
|
|
| |
Income from operations |
|
|
|
|
|
|
|
| |
As reported | $23,238 |
| $18,086 |
| $35,132 |
| $32,487 |
| |
Impairments and disposal gain | - |
| 2,360 |
| 14,451 |
| 8,120 |
| |
Lease termination and severance reserve | - |
| - |
| 1,334 |
| - |
| |
Adjusted | $23,238 |
| $20,446 |
| $50,917 |
| $40,607 |
| |
|
|
|
|
|
|
|
|
| |
Income (loss) from continuing operations before income taxes |
|
|
|
|
|
|
|
| |
As reported | $16,501 |
| $11,767 |
| $16,243 |
| $14,667 |
| |
Impairments and disposal gain | - |
| 2,360 |
| 14,451 |
| 8,120 |
| |
Lease termination and severance reserve | - |
| - |
| 1,334 |
| - |
| |
Gain on extinguishment of debt | - |
| - |
| - |
| (1,317) |
| |
Adjusted | $16,501 |
| $14,127 |
| $32,028 |
| $21,470 |
| |
Lithia Motors, Inc.
Reconciliation of Certain Non-GAAP Financial Measures (Unaudited)
(In thousands except per share data)
Adjusted net income/(loss) and diluted earnings per share |
| ||||||||
|
|
| |||||||
| Three Months Ended September 30, |
| |||||||
| Net income/(loss) |
| Diluted earnings per share |
| |||||
| 2010 |
| 2009 |
| 2010 |
| 2009 |
| |
Continuing Operations |
|
|
|
|
|
|
|
| |
As reported | $9,792 |
| $6,975 |
| $0.37 |
| $0.33 |
| |
Impairments and disposal gain | - |
| 1,571 |
| - |
| 0.07 |
| |
Adjusted | $9,792 |
| $8,546 |
| $0.37 |
| $0.40 |
| |
|
|
|
|
|
|
|
|
| |
Discontinued Operations |
|
|
|
|
|
|
|
| |
As reported | $ - |
| $(1,262) |
| $ - |
| $(0.06) |
| |
Impairments and disposal (gain) | - |
| 306 |
| - |
| 0.01 |
| |
Adjusted | $ - |
| $ (956) |
| $ - |
| (0.05) |
| |
|
|
|
|
|
|
|
|
| |
Consolidated Operations |
|
|
|
|
|
|
|
| |
As reported | $9,792 |
| $5,713 |
| $0.37 |
| $0.27 |
| |
Adjusted | 9,792 |
| 7,590 |
| 0.37 |
| 0.35 |
| |
|
|
|
|
|
|
|
|
| |
| Nine Months Ended September 30, |
| |||||||
| Net income/(loss) |
| Diluted earnings per share |
| |||||
| 2010 |
| 2009 |
| 2010 |
| 2009 |
| |
Continuing Operations |
|
|
|
|
|
|
|
| |
As reported | $9,721 |
| $8,730 |
| $0.37 |
| $0.42 |
| |
Impairments and disposal gain | 8,777 |
| 5,002 |
| 0.34 |
| 0.24 |
| |
Lease termination and severance reserve | 725 |
| - |
| 0.03 |
| - |
| |
Gain on extinguishment of debt | - |
| (812) |
|
|
| (0.04) |
| |
Adjusted | $19,223 |
| $12,920 |
| $0.74 |
| $0.62 |
| |
|
|
|
|
|
|
|
|
| |
Discontinued Operations |
|
|
|
|
|
|
|
| |
As reported | $(381) |
| $1,975 |
| $(0.01) |
| $0.09 |
| |
Impairments and disposal (gain) | 173 |
| (5,115) |
| - |
| (0.24) |
| |
Adjusted | $(208) |
| $(3,140) |
| $(0.01) |
| $(0.15) |
| |
|
|
|
|
|
|
|
|
| |
Consolidated Operations |
|
|
|
|
|
|
|
| |
As reported | $9,340 |
| $10,705 |
| $0.36 |
| $0.51 |
| |
Adjusted | 19,015 |
| 9,780 |
| 0.73 |
| 0.47 |
| |
|
|
|
|
|
|
|
|
| |