Lithia Motors Declares $0.13 per Share Dividend for Third Quarter 2013
MEDFORD, OR -- (Marketwired - October 23, 2013) - Lithia Motors, Inc. (NYSE: LAD) today reported the highest quarterly adjusted net income from continuing operations in Company history, and a 27% increase in adjusted net income per share from continuing operations for the third quarter 2013 over the prior year period.
Adjusted income from continuing operations for the third quarter 2013 was $29.6 million, or $1.13 per diluted share. This compares to 2012 third quarter income from continuing operations of $23.1 million, or $0.89 per diluted share.
Unadjusted net income from continuing operations for the third quarter of 2013 was $30.9 million, or $1.18 per diluted share. As shown in the attached non-GAAP reconciliation tables, the 2013 third quarter adjusted results from continuing operations exclude a $1.3 million benefit, or $0.05 per diluted share, related to a non-core tax attribute. We did not have any adjustments to the 2012 third quarter results from continuing operations.
Third quarter 2013 revenue from continuing operations increased $190.8 million, or 22%, to $1.1 billion from $878.5 million in the third quarter of 2012.
Third Quarter-over-Quarter Operating Highlights:
- New vehicle same store sales increased 16%
- Used vehicle retail same store sales increased 17%
- Service, body and parts same store sales increased 6%
- SG&A expense as a percentage of gross profit decreased 120 basis points to 65.6%
"Our stores delivered another solid quarter of sales growth that outpaced the national rate of recovery," said Bryan DeBoer, President and CEO. "However, opportunities continue to exist for our team to improve new and used vehicle sales volumes and new vehicle gross margin levels. Our focus is on capturing the benefit of additional unit sales for future business -- both through the sale of trade-in vehicles, incremental F&I income and the annuity value of future service work on vehicles sold today."
For the first nine months of 2013, adjusted net income per diluted share from continuing operations increased 36% to $3.02 from $2.22 for the first nine months of 2012. Unadjusted, net income from continuing operations was $2.98 per diluted share for the first nine months of 2013, compared to $2.28 per diluted share for the first nine months of 2012.
Chris Holzshu, SVP and CFO, said, "Adjusted SG&A expense as a percentage of gross profit was a record low 65.6% in the quarter, and 66.8% for the first nine months of 2013. Our same store incremental throughput, or the percentage of additional gross profit we retain after selling costs, was 41% in the third quarter. Our target of 50% incremental throughput remains unchanged, and we believe it is achievable despite the shortfall in the quarter. Our stores remain focused on leveraging our cost structure as we grow organically and through acquisitions."
Corporate Development
On October 7, 2013, we acquired Stockton Nissan Kia in Stockton, California, with estimated annualized revenues of $45 million.
Bryan DeBoer, President and CEO, stated, "We are pleased to add another store to the family, bringing the total number of new locations in 2013 to five. As the improvement in new vehicle sales growth moderates, acquisitions will become an increasingly important component in our strategic plan."
Balance Sheet Update
We ended the third quarter with $16 million in cash and $165 million in available credit on our credit facilities. Additionally, approximately $160 million of our operating real estate is currently unfinanced, which we estimate could provide up to an additional $120 million in available liquidity, for total liquidity of $301 million.
Dividend Payment
Lithia announced that the Board of Directors has approved a dividend of $0.13 per share related to third quarter 2013 financial results. Lithia will pay the dividend November 22, 2013 to shareholders of record on November 8, 2013.
Increased Outlook for 2013
We project 2013 fourth quarter earnings of $0.88 to $0.90 per diluted share and full year 2013 earnings of $3.90 to $3.92 per diluted share. Both projections are based on the following annual assumptions:
- Total revenues of $3.9 to $4.0 billion
- New vehicle same store sales increasing 16.6%
- New vehicle gross margin of 6.4% to 6.6%
- Used vehicle same store sales increasing 17.2%
- Used vehicle gross margin of 14.6% to 14.8%
- Service body and parts same store sales increasing 6.3%
- Service body and parts gross margin of 48.3% to 48.5%
- Finance and insurance gross profit of $1,100 per unit
- Tax rate of 39.5%
- Average diluted shares outstanding of 26.2 million
- Capital expenditures of $55 million
- Guidance excludes the impact of future acquisitions, dispositions, and any potential non-core items
Outlook for 2014
We project 2014 first quarter earnings of $0.91 to $0.93 per diluted share and full-year 2014 earnings of $4.15 to $4.25 per diluted share. Both projections are based on the following annual assumptions:
- Total revenues of $4.3 to $4.4 billion
- New vehicle same store sales increasing 8.2%
- New vehicle gross margin of 6.2% to 6.4%
- Used vehicle same store sales increasing 7.6%
- Used vehicle gross margin of 14.5% to 14.7%
- Service body and parts same store sales increasing 6.0%
- Service body and parts gross margin of 48.0% to 48.2%
- Finance and insurance gross profit of $1,100 per unit
- Tax rate of 39.5%
- Average diluted shares outstanding of 26.4 million
- Capital expenditures of $63 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 10:00 a.m. ET today by telephone at 877-407-8029. An updated presentation highlighting the third quarter results has been added to www.lithiainvestorrelations.com.
To listen live on our website or for replay, visit www.lithiainvestorrelations.com and click on webcasts.
About Lithia
Lithia Motors, Inc. is the ninth largest automotive retailer in the United States. Lithia sells 27 brands of new vehicles and all brands of used vehicles at 92 stores in 11 states. Lithia also arranges finance, warranty, and credit insurance contracts; and provides vehicle parts, maintenance, and repair services at all of its locations.
Sites
www.lithia.com
www.lithiainvestorrelations.com
www.lithiacareers.com
www.assuredservice.com
Lithia Motors on Facebook
http://www.facebook.com/LithiaMotors
Lithia Motors on Twitter
http://twitter.com/lithiamotors
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. 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 "project," "outlook," "expect," "anticipate," "intend," "plan," "believe," "estimate," "may," "seek," "would," "should," "likely," or "will" and similar references to future periods. Examples of forward-looking statements in this press release include our outlook of earnings per share results and the assumptions that underlie them.
By their nature, forward-looking statements involve risks and uncertainties because they relate to events that depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance, and our actual results of operations, financial condition and liquidity and development of the industries in which we operate may differ materially from those made in or suggested by the forward-looking statements in this press release. The risks and uncertainties that could cause actual results to differ materially from estimated or projected results include without limitation, future economic and financial conditions (both nationally and locally), changes in customer demand, our relationship with, and the financial and operational stability of, vehicle manufacturers and other suppliers, risks associated with our indebtedness (including available borrowing capacity, compliance with financial covenants and ability to refinance or repay indebtedness on favorable terms), government regulations, legislation and others set forth from time to time in our filings with the SEC. We urge you to carefully consider this information and not place undue reliance on forward-looking statements. We undertake no duty to update our forward-looking statements, including our earnings outlook, which are made as of the date of this release.
Non-GAAP Financial Measures
This press release and the attached financial tables contain non-GAAP financial measures 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. Non-GAAP measures do not have definitions under GAAP and may be defined differently by and not comparable to similarly titled measures used by other companies. As a result, we review any non-GAAP financial measures in connection with a review of the most directly comparable measures calculated in accordance with GAAP. We caution you not to place undue reliance on such non-GAAP measures, but also to consider them with the most directly comparable GAAP measures. We present cash flows from operations in the attached tables, adjusted to include the change in non-trade floor plan debt to improve the visibility of cash flows related to vehicle financing. As required by SEC rules, we have reconciled these measures to the most directly comparable GAAP measures in the attachments to this release. We believe the non-GAAP financial measures we present improve the transparency of our disclosures; provide a meaningful presentation of our results from core business operations, because they exclude items not related to core business operations and other non-cash items; and improve the period-to-period comparability of our results from core business operations. These presentations should not be considered an alternative to GAAP measures.
Lithia Motors, Inc.
Consolidated Statements of Operations (Unaudited)
(In thousands except per share data)
Three months ended
September 30, %
----------------------- Increase Increase
2013 2012 (Decrease) (Decrease)
---------- ---------- ----------- ----------
Revenues:
New vehicle retail $ 604,135 $ 491,846 $ 112,289 22.8%
Used vehicle retail 280,734 227,157 53,577 23.6
Used vehicle wholesale 43,396 35,006 8,390 24.0
Finance and insurance 37,132 30,929 6,203 20.1
Service, body and parts 97,784 89,038 8,746 9.8
Fleet and other 6,109 4,550 1,559 34.3
---------- ---------- ----------- ----------
Total revenues 1,069,290 878,526 190,764 21.7
Cost of sales:
New vehicle retail 565,549 456,753 108,796 23.8
Used vehicle retail 239,093 193,885 45,208 23.3
Used vehicle wholesale 42,686 35,042 7,644 21.8
Service, body and parts 50,793 46,033 4,760 10.3
Fleet and other 5,780 4,303 1,477 34.3
---------- ---------- ----------- ----------
Total cost of sales 903,901 736,016 167,885 22.8
---------- ---------- ----------- ----------
Gross profit 165,389 142,510 22,879 16.1
SG&A expense 108,570 95,132 13,438 14.1
Depreciation and
amortization 5,099 4,351 748 17.2
---------- ---------- ----------- ----------
Income from operations 51,720 43,027 8,693 20.2
Floor plan interest
expense (2,909) (3,370) (461) (13.7)
Other interest expense (1,933) (2,125) (192) (9.0)
Other income, net 835 453 382 84.3
---------- ---------- ----------- ----------
Income from continuing
operations before
income taxes 47,713 37,985 9,728 25.6
Income tax expense (16,822) (14,893) 1,929 13.0
Income tax rate 35.3% 39.2%
---------- ---------- ----------- ----------
Income from continuing
operations $ 30,891 $ 23,092 $ 7,799 33.8%
Income from
discontinued
operations, net of tax 127 151 (24) (15.9)
---------- ---------- ----------- ----------
Net income $ 31,018 $ 23,243 $ 7,775 33.5%
Diluted net income per
share:
Continuing operations $ 1.18 $ 0.89 $ 0.29 32.6%
Discontinued operations - 0.01 (0.01) (100.0)
---------- ---------- ----------- ----------
Net income per share $ 1.18 $ 0.90 $ 0.28 31.1%
========== ========== =========== ==========
Diluted shares
outstanding 26,237 25,947 290 1.1%
Lithia Motors, Inc.
Key Performance Metrics (Unaudited)
Three months ended
September 30, %
-------------------- Increase Increase
2013 2012 (Decrease) (Decrease)
-------- --------- ---------- ----------
Gross margin
New vehicle retail 6.4% 7.1% (70) bps
Used vehicle retail 14.8 14.6 20 bps
Used vehicle wholesale 1.6 (0.1) 170 bps
Finance and insurance 100.0 100.0 - bps
Service, body and parts 48.1 48.3 (20) bps
Fleet and Other 5.4 5.4 - bps
Gross profit margin 15.5 16.2 (70) bps
Unit sales
New vehicle retail 18,109 14,841 3,268 22.0%
Used vehicle retail 15,496 13,211 2,285 17.3
Used vehicle wholesale 6,059 5,142 917 17.8
Total units sold 39,664 33,194 6,470 19.5
Average selling price
New vehicle retail 33,361 $ 33,141 $ 220 0.7%
Used vehicle retail 18,117 17,195 922 5.4
Used vehicle wholesale 7,162 6,808 354 5.2
Average gross profit per
unit
New vehicle retail 2,131 $ 2,365 $ (234) (9.9)%
Used vehicle retail 2,687 2,519 168 6.7
Used vehicle wholesale 117 (7) 124 NM
Finance and insurance 1,105 1,103 2 0.2
Revenue mix
New vehicle retail 56.5% 56.0%
Used vehicle retail 26.3 25.9
Used vehicle wholesale 4.1 4.0
Finance and insurance, net 3.5 3.5
Service, body and parts 9.1 10.1
Fleet and other 0.5 0.5
Adjusted As reported
--------------- ---------------
Three months Three months
ended ended
September 30, September 30,
--------------- ---------------
Other metrics 2013 2012 2013 2012
------ ------ ------ ------
SG&A as a % of revenue 10.2% 10.8% 10.2% 10.8%
SG&A as a % of gross profit 65.6 66.8 65.6 66.8
Operating profit as a % of revenue 4.8 4.9 4.8 4.9
Operating profit as a % of gross profit 31.3 30.2 31.3 30.2
Pretax margin 4.5 4.3 4.5 4.3
Net profit margin 2.8 2.6 2.9 2.6
NM - not meaningful
Lithia Motors, Inc.
Same Store Operating Highlights (Unaudited)
Three months ended
September 30, %
---------------------- Increase Increase
2013 2012 (Decrease) (Decrease)
---------- ---------- ---------- ----------
Revenues
New vehicle retail $ 569,744 $ 492,063 $ 77,681 15.8%
Used vehicle retail 265,734 227,311 38,423 16.9
Used vehicle wholesale 41,371 35,084 6,287 17.9
Finance and insurance 35,110 30,003 5,107 17.0
Service, body and parts 93,938 88,989 4,949 5.6
Fleet and other 5,997 4,397 1,600 36.4
---------- ---------- ----------
Total revenues $1,011,894 $ 877,847 $ 134,047 15.3
Gross profit
New vehicle retail $ 35,995 $ 35,107 $ 888 2.5%
Used vehicle retail 39,766 33,312 6,454 19.4
Used vehicle wholesale 642 (32) 674 NM
Finance and insurance 35,110 30,003 5,107 17.0
Service, body and parts 44,281 42,034 2,247 5.3
Fleet and other 209 96 113 117.7
---------- ---------- ----------
Total gross profit $ 156,003 $ 140,520 $ 15,483 11.0
Gross margin
New vehicle retail 6.3% 7.1% (80) bps
Used vehicle retail 15.0 14.7 30 bps
Used vehicle wholesale 1.6 (0.1) 170 bps
Finance and insurance 100.0 100.0 - bps
Service, body and parts 47.1 47.2 (10) bps
Fleet and Other 3.5 2.2 130 bps
Gross profit margin 15.4 16.0 (60) bps
Unit sales
New vehicle retail 17,048 14,846 2,202 14.8%
Used vehicle retail 14,690 13,223 1,467 11.1
Used vehicle wholesale 5,783 5,148 635 12.3
Total units sold 37,521 33,217 4,304 13.0
Average selling price
New vehicle retail $ 33,420 $ 33,144 $ 276 0.8%
Used vehicle retail 18,089 17,191 898 5.2
Used vehicle wholesale 7,154 6,815 339 5.0
Average gross profit per
unit
New vehicle retail $ 2,111 $ 2,365 $ (254) (10.7)%
Used vehicle retail 2,707 2,519 188 7.5
Used vehicle wholesale 111 (6) 117 NM
Finance and insurance 1,106 1,069 37 3.5
Lithia Motors, Inc.
Consolidated Statements of Operations (Unaudited)
(In thousands except per share data)
Nine months ended
September 30, %
----------------------- Increase Increase
2013 2012 (Decrease) (Decrease)
---------- ---------- ---------- ----------
Revenues:
New vehicle retail $1,667,063 $1,340,731 $ 326,332 24.3%
Used vehicle retail 778,427 625,117 153,310 24.5
Used vehicle wholesale 120,593 103,469 17,124 16.5
Finance and insurance 103,013 82,989 20,024 24.1
Service, body and parts 282,686 258,038 24,648 9.6
Fleet and other 29,093 28,770 323 1.1
---------- ---------- ---------- ----------
Total revenues 2,980,875 2,439,114 541,761 22.2
Cost of sales:
New vehicle retail 1,555,042 1,241,820 313,222 25.2
Used vehicle retail 662,920 532,577 130,343 24.5
Used vehicle wholesale 118,214 102,812 15,402 15.0
Service, body and parts 145,223 133,224 11,999 9.0
Fleet and other 27,816 27,741 75 0.3
---------- ---------- ---------- ----------
Total cost of sales 2,509,215 2,038,174 471,041 23.1
---------- ---------- ---------- ----------
Gross profit 471,660 400,940 70,720 17.6
Asset impairments - 115 (115) (100.0)
SG&A expense 318,984 276,561 42,423 15.3
Depreciation and
amortization 14,719 12,687 2,032 16.0
---------- ---------- ---------- ----------
Income from operations 137,957 111,577 26,380 23.6
Floor plan interest
expense (9,394) (9,326) 68 0.7
Other interest expense (6,235) (7,382) (1,147) (15.5)
Other income, net 2,220 1,770 450 25.4
---------- ---------- ---------- ----------
Income from continuing
operations before
income taxes 124,548 96,639 27,909 28.9
Income tax expense (46,494) (36,908) 9,586 26.0
Income tax rate 37.3% 38.2%
---------- ---------- ---------- ----------
Income from continuing
operations $ 78,054 $ 59,731 $ 18,323 30.7%
Income from discontinued
operations, net of tax 574 799 (225) (28.2)
---------- ---------- ---------- ----------
Net income $ 78,628 $ 60,530 $ 18,098 29.9%
Diluted net income per
share:
Continuing operations $ 2.98 $ 2.28 $ 0.70 30.7%
Discontinued operations 0.03 0.03 - -
---------- ---------- ---------- ----------
Net income per share $ 3.01 $ 2.31 $ 0.70 30.3%
========== ========== ========== ==========
Diluted shares
outstanding 26,159 26,203 (44) (0.2)%
Lithia Motors, Inc.
Key Performance Metrics (Unaudited)
Nine months ended
September 30, %
----------------------- Increase Increase
2013 2012 (Decrease) (Decrease)
---------- ---------- ---------- ----------
Gross margin
New vehicle retail 6.7% 7.4% (70) bps
Used vehicle retail 14.8 14.8 - bps
Used vehicle wholesale 2.0 0.6 140 bps
Finance and insurance 100.0 100.0 - bps
Service, body and parts 48.6 48.4 20 bps
Fleet and Other 4.4 3.6 80 bps
Gross profit margin 15.8 16.4 (60) bps
Unit sales
New vehicle retail 49,853 40,953 8,900 21.7%
Used vehicle retail 43,231 36,022 7,209 20.0
Used vehicle wholesale 16,624 14,135 2,489 17.6
Total units sold 109,708 91,110 18,598 20.4
Average selling price
New vehicle retail $ 33,440 $ 32,738 $ 702 2.1%
Used vehicle retail 18,006 17,354 652 3.8
Used vehicle wholesale 7,254 7,320 (66) (0.9)
Average gross profit
per unit
New vehicle retail $ 2,247 $ 2,415 $ (168) (7.0)%
Used vehicle retail 2,672 2,569 103 4.0
Used vehicle wholesale 143 46 97 210.9
Finance and insurance 1,107 1,078 29 2.7
Revenue mix
New vehicle retail 55.9% 55.0%
Used vehicle retail 26.1 25.6
Used vehicle wholesale 4.0 4.2
Finance and insurance,
net 3.5 3.4
Service, body and parts 9.5 10.6
Fleet and other 1.0 1.2
Adjusted As reported
----------------- -----------------
Nine months ended Nine months ended
September 30, September 30,
----------------- -----------------
Other metrics 2013 2012 2013 2012
------- ------- ------- -------
SG&A as a % of revenue 10.6% 11.4% 10.7% 11.3%
SG&A as a % of gross profit 66.8 69.2 67.6 69.0
Operating profit as a % of revenue 4.8 4.5 4.6 4.6
Operating profit as a % of gross
profit 30.1 27.7 29.2 27.8
Pretax margin 4.3 3.9 4.2 4.0
Net profit margin 2.6 2.4 2.6 2.4
Lithia Motors, Inc.
Same Store Operating Highlights (Unaudited)
Nine months ended
September 30, %
---------------------- Increase Increase
2013 2012 (Decrease) (Decrease)
---------- ---------- ---------- ----------
Revenues
New vehicle retail $1,585,504 $1,336,187 $ 249,317 18.7%
Used vehicle retail 739,487 622,080 117,407 18.9
Used vehicle wholesale 113,417 102,892 10,525 10.2
Finance and insurance 97,671 80,983 16,688 20.6
Service, body and parts 273,130 256,782 16,348 6.4
Fleet and Other 28,683 28,313 370 1.3
---------- ---------- ----------
Total revenues $2,837,892 $2,427,237 $ 410,655 16.9
Gross profit
New vehicle retail $ 105,498 $ 98,458 $ 7,040 7.2%
Used vehicle retail 110,616 92,251 18,365 19.9
Used vehicle wholesale 2,402 712 1,690 237.4
Finance and insurance 97,671 80,983 16,688 20.6
Service, body and parts 130,208 121,537 8,671 7.1
Fleet and Other 882 612 270 44.1
---------- ---------- ----------
Total gross profit $ 447,277 $ 394,553 $ 52,724 13.4
Gross margin
New vehicle retail 6.7% 7.4% (70) bps
Used vehicle retail 15.0 14.8 20 bps
Used vehicle wholesale 2.1 0.7 140 bps
Finance and insurance 100.0 100.0 - bps
Service, body and parts 47.7 47.3 40 bps
Fleet and Other 3.1 2.2 90 bps
Gross profit margin 15.8 16.3 (50) bps
Unit sales
New vehicle retail 47,411 40,816 6,595 16.2%
Used vehicle retail 41,197 35,841 5,356 14.9
Used vehicle wholesale 15,752 14,046 1,706 12.1
Total units sold 104,360 90,703 13,657 15.1
Average selling price
New vehicle retail $ 33,442 $ 32,737 $ 705 2.2%
Used vehicle retail 17,950 17,357 593 3.4
Used vehicle wholesale 7,200 7,325 (125) (1.7)
Average gross profit per
unit
New vehicle retail $ 2,225 $ 2,412 $ (187) (7.8)%
Used vehicle retail 2,685 2,574 111 4.3
Used vehicle wholesale 152 51 101 198.0
Finance and insurance 1,102 1,056 46 4.4
Lithia Motors, Inc.
Other Highlights (Unaudited)
As of
-------------------------------------------
September 30, December 31, September 30,
2013 2012 2012
------------- ------------- -------------
Days Supply(1)
New vehicle inventory 76 76 75
Used vehicle inventory 52 56 50
(1) Days supply calculated based on current inventory levels, excluding in-
transit vehicles, and a 30-day historical cost of sales level.
Financial covenants
As of September
Requirement 30, 2013
-------------------------- ------------------
Current ratio Not less than 1.20 to 1 1.44 to 1
Fixed charge coverage ratio Not less than 1.20 to 1 3.54 to 1
Leverage ratio Not more than 5.00 to 1 1.48 to 1
Funded debt restriction Not more than $375 million $169.3 million
Lithia Motors, Inc.
Other Highlights (Unaudited)
Three months ended Nine months ended
September 30, September 30,
------------------- -------------------
2013 2012 2013 2012
-------- -------- -------- --------
New vehicle unit sales brand mix
Chrysler 29.5% 32.7% 30.1% 32.3%
Toyota 14.9 14.3 14.8 13.7
General Motors 14.5 15.2 15.5 15.4
Honda, Acura 8.8 6.8 7.7 6.9
Subaru 8.0 6.8 7.8 7.1
BMW, MINI 6.4 6.4 6.4 6.6
Ford 5.9 5.2 5.9 5.3
Nissan 2.8 2.9 2.8 2.9
Volkswagen, Audi 2.8 2.4 2.3 2.1
Hyundai 2.6 3.7 2.7 3.9
Mercedes 2.5 2.2 2.5 2.0
Kia 0.7 0.8 0.6 1.0
Mazda 0.4 0.4 0.5 0.5
Other 0.2 0.2 0.4 0.3
Three months ended Nine months ended
September 30, September 30,
------------------ ------------------
2013 2012 2013 2012
-------- -------- -------- --------
Revenue geographic mix
Texas 24.0% 24.4% 24.9% 25.0%
Oregon 22.0 20.1 21.1 20.2
California 10.1 10.0 10.4 10.3
Montana 9.1 9.2 9.0 9.0
Washington 8.0 8.5 8.1 8.1
Alaska 7.9 8.4 7.8 8.7
Idaho 5.0 5.4 5.1 5.4
Nevada 5.0 4.6 4.8 4.7
Iowa 4.9 5.3 4.8 5.0
North Dakota 2.3 2.3 2.4 2.3
New Mexico 1.7 1.8 1.6 1.3
As of October 23,
2013
------------------
Current store count mix # of % of
stores total
-------- --------
Chrysler 23 25.1%
General Motors 13 14.1
Honda, Acura 10 10.9
Toyota 9 9.8
BMW, MINI 9 9.8
Hyundai 5 5.4
Ford 5 5.4
Mercedes 4 4.3
Subaru 4 4.3
Nissan 4 4.3
Volkswagen, Audi 3 3.3
Other 3 3.3
Lithia Motors, Inc.
Consolidated Balance Sheets (Unaudited)
(In thousands)
September 30, December 31,
2013 2012
------------- -------------
Cash and cash equivalents $ 16,093 $ 42,839
Trade receivables, net 140,086 133,149
Inventories, net 755,698 723,326
Deferred income taxes 1,999 3,832
Other current assets 9,477 17,484
Assets held for sale 11,845 12,579
------------- -------------
Total current assets $ 935,198 $ 933,209
Property and equipment, net 452,367 425,086
Goodwill 40,313 32,047
Franchise value 66,465 62,429
Deferred income taxes 15,826 17,123
Other non-current assets 29,009 22,808
------------- -------------
Total assets $ 1,539,178 $ 1,492,702
============= =============
Floor plan notes payable $ 19,221 $ 13,454
Floor plan notes payable: non trade 569,027 568,130
Current maturities of long-term debt 7,066 8,182
Trade payables 48,645 41,589
Accrued liabilities 94,678 81,602
Liabilities related to assets held for sale 7,403 8,347
------------- -------------
Total current liabilities $ 746,040 $ 721,304
Long-term debt 218,172 286,876
Deferred revenue 40,774 33,589
Other long-term liabilities 27,063 22,832
------------- -------------
Total liabilities $ 1,032,049 $ 1,064,601
------------- -------------
Class A common stock 267,004 268,801
Class B common stock 319 343
Additional paid-in capital 20,401 12,399
Accumulated other comprehensive loss (1,677) (2,615)
Retained earnings 221,082 149,173
------------- -------------
Total liabilities & stockholders' equity $ 1,539,178 $ 1,492,702
============= =============
Lithia Motors, Inc.
Summarized Cash Flow from Operations (Unaudited)
(In thousands)
Nine months ended
September 30,
-----------------------------
2013 2012
------------- -------------
Net income $ 78,628 $ 60,530
Adjustments to reconcile net income to net
cash provided by (used in) operating
activities:
Asset impairments - 115
Depreciation and amortization 14,719 12,687
Depreciation and amortization within
discontinued operations - 186
Stock-based compensation 4,161 2,329
(Gain) loss on disposal of assets 107 (775)
(Gain) loss on disposal activities within
discontinued operations - 397
Deferred income taxes 8,504 6,851
Excess tax benefit from share-based payment
arrangements (5,956) (1,629)
(Increase) decrease:
Trade receivables, net (6,937) (29,160)
Inventories (18,187) (158,186)
Other current assets 5,464 3,169
Other non-current assets (3,804) (4,346)
Increase (decrease):
Floor plan notes payable, net 5,721 (93,975)
Trade payables 4,848 5,381
Accrued liabilities 13,099 10,164
Other long-term liabilities and deferred
revenue 12,307 9,927
------------- -------------
Net cash provided by (used in) operating
activities $ 112,674 $ (176,335)
============= =============
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 2013 2012
----------- -----------
As reported $ 112,674 $ (176,335)
Floor plan notes payable, non-trade, net 2,685 272,760
----------- -----------
Adjusted $ 115,359 $ 96,425
=========== ===========
Lithia Motors, Inc.
Reconciliation of Certain Non-GAAP Financial Measures (Unaudited)
(In thousands, except for per share data)
Three months ended September 30, 2013
------------------------------------------
Tax
As reported attribute Adjusted
------------ ------------ ------------
Income from continuing
operations before income taxes $ 47,713 $ - $ 47,713
Income tax expense (16,822) (1,284) (18,106)
------------ ------------ ------------
Net income from continuing
operations $ 30,891 $ (1,284) $ 29,607
============ ============ ============
Diluted earnings per share from
continuing operations $ 1.18 $ (0.05) $ 1.13
Diluted share count 26,237
Lithia Motors, Inc.
Reconciliation of Certain Non-GAAP Financial Measures (Unaudited)
(In thousands, except for per share data)
Nine months ended September 30, 2013
---------------------------------------------------
Reserve Tax
As reported adjustment attribute Adjusted
----------- ----------- ----------- ---------
Selling, general and
administrative $ 318,984 $ (3,813) $ - $ 315,171
Income from operations $ 137,957 $ 3,813 $ - $ 141,770
Income from continuing
operations before
income taxes $ 124,548 $ 3,813 $ - $ 128,361
Income tax expense (46,494) (1,484) (1,512) (49,490)
----------- ----------- ----------- ---------
Net income from
continuing operations $ 78,054 $ 2,329 $ (1,512) $ 78,871
=========== =========== =========== =========
Diluted earnings per
share from continuing
operations $ 2.98 $ 0.09 $ (0.05) $ 3.02
Diluted share count 26,159
Nine months ended September 30, 2012
----------------------------------------------------------
Asset
impairment
and
As disposal Equity Tax
reported gain investment attribute Adjusted
--------- ----------- ----------- ---------- ---------
Asset
impairments $ 115 $ (115) $ - $ - $ -
Selling, general
and
administrative 276,561 739 - - 277,300
Income from
operations 111,577 (624) - - 110,953
Other income,
net 1,770 - (244) - 1,526
Income from
continuing
operations
before income
taxes $ 96,639 $ (624) $ (244) $ - $ 95,771
Income tax
expense (36,908) 244 95 (1,066) (37,635)
--------- ----------- ----------- ---------- ---------
Net income from
continuing
operations $ 59,731 $ (380) $ (149) $ (1,066) $ 58,136
========= =========== =========== ========== =========
Diluted earnings
per share from
continuing
operations $ 2.28 $ (0.01) $ (0.01) $ (0.04) $ 2.22
Diluted share
count 26,203
Contact: John North VP Finance and Controller (541) 618-5748