-
Lithia posts profit of 19 cents per share from continuing operations
-
Gross margin of 19.4% of sales compared to 16.8% in 2008
-
Significant progress on $65 million in annualized cost savings, with
lower sequential SG&A expenses than in the first quarter of 2009.
Lithia Motors, Inc. (NYSE: LAD) announced today that net income from
continuing operations in the second quarter of 2009 was $4.1 million or
nineteen cents per diluted share, compared to net loss from continuing
operations of $201.2 million, or $10.02 per diluted share in the second
quarter of 2008. As disclosed in the attached financial tables,
excluding impairment charges and gains on extinguishment of debt, net
income from continuing operations in the second quarter of 2009 was
nineteen cents per share, compared to net income from continuing
operations of ten cents per share in the second quarter of 2008.
Second quarter 2009 revenue from continuing operations totaled $402
million, compared to $532 million in the year-ago period, driven
primarily by lower new vehicle sales. Same store retail new vehicle
sales declined 36.8% while retail used vehicle sales increased 2.3% when
compared to the same quarter last year. Service, body and parts same
store sales declined 5.2% compared to the same quarter of last year.
Sid DeBoer, Lithia’s Chairman and CEO, commented: “The restructuring
plan we initiated in the second quarter of 2008 is proving to be
successful. Despite a new vehicle automotive market that is at historic
lows, and the impact of the reorganization of both Chrysler and General
Motors, Lithia is profitable. We have focused on improving gross margins
and used vehicle retail sales throughout the year and are pleased with
our results. We continue to right-size our organization to match
industry sales volumes and performance objectives. SG&A as a percentage
of gross profit declined by 730 basis points, from 86.8% in the first
quarter of 2009 to 79.5% in the second quarter of 2009.”
For the six-month period ending June 30, 2009, total sales declined 27%
to $769 million as compared to $1.05 billion in the same period last
year. Same store new vehicle sales decreased 37.8%, retail used vehicle
sales decreased 4.4% and service, body and parts sales decreased 5.5%.
For the first six months, Lithia’s income from continuing operations,
net of tax, and excluding asset impairment charges and gains on debt
retirements was eighteen cents per share as compared to nine cents per
share in 2008.
Jeff DeBoer, Senior Vice President and CFO, added: “We have generated
$74.3 million in cash flows from operations in 2009. Including the
effects of floorplan repayments classified as financing activities in
the statement of cash flows, adjusted cash flows from operations were
$48.8 million for the year to date period. We are using these proceeds
and cash generated from financing and asset sales to pay down debt and
strengthen the balance sheet. We remain in compliance with all debt
covenants at the end of the quarter.”
The first quarter conference call may be accessed at 2:00 p.m. Pacific
Time today by phone at (800) 254-5933 Conference ID: 19480043. A
playback of the conference call will be available after 5 p.m. Pacific
Time July 30, 2009 through August 6, 2009 by calling (800) 642-1687
access code: 19480043.
About Lithia
Lithia Motors, Inc. is a Fortune 700 Company, selling 27 brands of new
and all brands of used vehicles at 88 stores, which are located in 13
states. Internet sales are centralized at www.Lithia.com.
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.
Additional Information
For additional information on Lithia Motors, contact the Investor
Relations Department: (541) 776-6591 or log-on to: www.lithia.com
–
go to Investor Relations
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. 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.
Non-GAAP Financial Measures
The attached financial tables contain certain non-GAAP financial
measures as defined under SEC rules, such as net income and diluted
earnings per share from continuing operations, adjusted to exclude
certain items disclosed in the attached financial tables. 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 the impact
of items not related to the Company's ongoing core business operations,
and improves the period-to-period comparability of the Company's results
from its core business operations.
|
LITHIA MOTORS, INC.
|
|
(In thousands except per share data)
|
|
Unaudited
|
|
|
|
Three Months Ended
|
|
|
|
|
%
|
|
|
|
|
|
June 30,
|
|
|
Increase
|
|
Increase
|
|
|
|
|
|
2009
|
|
2008
|
|
|
(Decrease)
|
|
(Decrease)
|
|
New vehicle sales
|
|
|
|
$
|
194,489
|
|
|
$
|
308,830
|
|
|
|
$
|
(114,341
|
)
|
|
(37.0
|
)
|
%
|
|
Used vehicle sales
|
|
|
|
|
130,281
|
|
|
|
135,504
|
|
|
|
|
(5,223
|
)
|
|
(3.9
|
)
|
|
|
Finance and insurance
|
|
|
|
|
13,917
|
|
|
|
20,263
|
|
|
|
|
(6,346
|
)
|
|
(31.3
|
)
|
|
|
Service, body and parts
|
|
|
|
|
62,544
|
|
|
|
65,624
|
|
|
|
|
(3,080
|
)
|
|
(4.7
|
)
|
|
|
Fleet and other revenues
|
|
|
|
|
597
|
|
|
|
1,432
|
|
|
|
|
(835
|
)
|
|
(58.3
|
)
|
|
|
Total revenues
|
|
|
|
|
401,828
|
|
|
|
531,653
|
|
|
|
|
(129,825
|
)
|
|
(24.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
|
324,062
|
|
|
|
442,245
|
|
|
|
|
(118,183
|
)
|
|
(26.7
|
)
|
|
|
Gross profit
|
|
|
|
|
77,766
|
|
|
|
89,408
|
|
|
|
|
(11,642
|
)
|
|
(13.0
|
)
|
|
|
Asset impairment charges
|
|
|
|
|
-
|
|
|
|
294,075
|
|
|
|
|
(294,075
|
)
|
|
(100.0
|
)
|
|
|
SG&A expense
|
|
|
|
|
61,858
|
|
|
|
76,892
|
|
|
|
|
(15,034
|
)
|
|
(19.6
|
)
|
|
|
Depreciation and amortization
|
|
|
|
|
3,991
|
|
|
|
4,261
|
|
|
|
|
(270
|
)
|
|
(6.3
|
)
|
|
|
Income (loss) from operations
|
|
|
|
|
11,917
|
|
|
|
(285,820
|
)
|
|
|
|
297,737
|
|
|
104.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Floorplan interest expense
|
|
|
|
|
(2,416
|
)
|
|
|
(4,750
|
)
|
|
|
|
(2,334
|
)
|
|
(49.1
|
)
|
|
|
Other interest expense
|
|
|
|
|
(2,991
|
)
|
|
|
(4,251
|
)
|
|
|
|
(1,260
|
)
|
|
(29.6
|
)
|
|
|
Other income, net
|
|
|
|
|
258
|
|
|
|
1,068
|
|
|
|
|
(810
|
)
|
|
(75.8
|
)
|
|
|
Income (loss) from continuing
operations before
income taxes
|
|
|
|
|
6,768
|
|
|
|
(293,753
|
)
|
|
|
|
300,521
|
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (benefit)
|
|
|
|
|
2,718
|
|
|
|
(92,545
|
)
|
|
|
|
95,263
|
|
|
NM
|
|
|
|
Income tax (benefit) rate
|
|
|
|
|
40.2
|
%
|
|
|
(31.5
|
)%
|
|
|
|
|
|
|
|
Income (loss) from continuing
operations
|
|
|
|
|
4,050
|
|
|
|
(201,208
|
)
|
|
|
|
205,258
|
|
|
NM
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations,
net of income tax
|
|
|
|
|
(26
|
)
|
|
|
(3,068
|
)
|
|
|
|
(3,042
|
)
|
|
(99.2
|
)
|
|
|
Loss from disposal activities,
net of income tax
|
|
|
|
|
(361
|
)
|
|
|
(39,508
|
)
|
|
|
|
(39,147
|
)
|
|
(99.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
3,663
|
|
|
$
|
(243,784
|
)
|
|
|
|
247,447
|
|
|
NM
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
|
|
0.19
|
|
|
|
(10.02
|
)
|
|
|
|
10.21
|
|
|
NM
|
|
%
|
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations,
net of income tax
|
|
|
|
|
-
|
|
|
|
(0.15
|
)
|
|
|
|
|
|
|
Loss from disposal activities,
net of income tax
|
|
|
|
|
(0.02
|
)
|
|
|
(1.97
|
)
|
|
|
|
|
|
|
|
Net income (loss) per share
|
|
|
|
$
|
0.17
|
|
|
$
|
(12.14
|
)
|
|
|
$
|
12.31
|
|
|
NM
|
|
|
|
Diluted shares outstanding
|
|
|
|
|
21,231
|
|
|
|
20,073
|
|
|
|
|
1,158
|
|
|
5.8
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM – not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LITHIA MOTORS, INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
(Continuing operations)
|
|
|
|
Three Months Ended
|
|
|
|
|
|
%
|
|
|
Unaudited
|
|
|
|
June 30,
|
|
|
|
Increase
|
|
Increase
|
|
|
|
|
|
|
2009
|
|
|
|
2008
|
|
|
|
(Decrease)
|
|
(Decrease)
|
|
|
Unit sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
|
|
|
|
|
6,509
|
|
|
|
|
10,992
|
|
|
|
|
|
(4,483
|
)
|
|
(40.8
|
)
|
%
|
|
Used - retail vehicle
|
|
|
|
|
6,937
|
|
|
|
|
6,527
|
|
|
|
|
|
410
|
|
|
6.3
|
|
|
|
Used - wholesale
|
|
|
|
|
2,855
|
|
|
|
|
4,082
|
|
|
|
|
|
(1,227
|
)
|
|
(30.1
|
)
|
|
|
Total units sold
|
|
|
|
|
16,301
|
|
|
|
|
21,601
|
|
|
|
|
|
(5,300
|
)
|
|
(24.5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling price:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
|
|
|
|
$
|
29,880
|
|
|
|
$
|
28,096
|
|
|
|
|
$
|
1,784
|
|
|
6.4
|
|
%
|
|
Used - retail vehicle
|
|
|
|
|
16,424
|
|
|
|
|
17,167
|
|
|
|
|
|
(743
|
)
|
|
(4.3
|
)
|
|
|
Used - wholesale
|
|
|
|
|
5,727
|
|
|
|
|
5,745
|
|
|
|
|
|
(18
|
)
|
|
(0.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin/profit data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle retail
|
|
|
|
|
8.2
|
|
%
|
|
|
7.8
|
|
|
%
|
|
40 bps
|
|
|
|
|
Used vehicle retail
|
|
|
|
|
14.7
|
|
%
|
|
|
12.0
|
|
|
%
|
|
270 bps
|
|
|
|
|
Used vehicle wholesale
|
|
|
|
|
0.2
|
|
%
|
|
|
(2.8
|
)
|
|
%
|
|
300 bps
|
|
|
|
|
Service, body & parts
|
|
|
|
|
49.4
|
|
%
|
|
|
48.8
|
|
|
%
|
|
60 bps
|
|
|
|
|
Finance & insurance
|
|
|
|
|
100.0
|
|
%
|
|
|
100.0
|
|
|
%
|
|
|
-
|
|
|
|
|
|
Gross profit margin
|
|
|
|
|
19.4
|
|
%
|
|
|
16.8
|
|
|
%
|
|
260 bps
|
|
|
|
|
New retail gross profit/unit
|
|
|
|
$
|
2,439
|
|
|
|
$
|
2,179
|
|
|
|
|
$
|
260
|
|
|
|
|
|
Used retail gross profit/unit
|
|
|
|
|
2,413
|
|
|
|
|
2,057
|
|
|
|
|
|
356
|
|
|
|
|
|
Used wholesale gross profit/unit
|
|
|
|
|
13
|
|
|
|
|
(158
|
)
|
|
|
|
|
171
|
|
|
|
|
|
Finance & insurance/retail unit
|
|
|
|
|
1,035
|
|
|
|
|
1,157
|
|
|
|
|
|
(122
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue mix:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicles
|
|
|
|
|
48.4
|
|
%
|
|
|
58.1
|
|
|
%
|
|
|
|
|
|
|
Used retail vehicles
|
|
|
|
|
28.3
|
|
%
|
|
|
21.1
|
|
|
%
|
|
|
|
|
|
|
Used wholesale vehicles
|
|
|
|
|
4.1
|
|
%
|
|
|
4.4
|
|
|
%
|
|
|
|
|
|
|
Finance and insurance, net
|
|
|
|
|
3.5
|
|
%
|
|
|
3.8
|
|
|
%
|
|
|
|
|
|
|
Service and parts
|
|
|
|
|
15.6
|
|
%
|
|
|
12.3
|
|
|
%
|
|
|
|
|
|
|
Fleet and other
|
|
|
|
|
0.1
|
|
%
|
|
|
0.3
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LITHIA MOTORS, INC.
|
|
|
|
|
|
|
|
|
|
(Continuing operations)
|
|
|
Three Months Ended
|
|
Unaudited
|
|
|
June 30,
|
|
|
|
|
2009
|
|
|
|
2008
|
|
New vehicle unit sales brand mix:
|
|
|
|
|
|
|
|
|
|
Chrysler Brands
|
|
|
|
28.8
|
%
|
|
|
|
29.4
|
%
|
|
General Motors & Saturn
|
|
|
|
17.5
|
%
|
|
|
|
18.1
|
%
|
|
Toyota
|
|
|
|
14.6
|
%
|
|
|
|
16.5
|
%
|
|
Honda
|
|
|
|
10.6
|
%
|
|
|
|
10.4
|
%
|
|
Ford
|
|
|
|
4.8
|
%
|
|
|
|
3.7
|
%
|
|
BMW
|
|
|
|
5.6
|
%
|
|
|
|
4.8
|
%
|
|
Hyundai
|
|
|
|
4.3
|
%
|
|
|
|
4.3
|
%
|
|
Nissan
|
|
|
|
4.3
|
%
|
|
|
|
4.7
|
%
|
|
Volkswagen, Audi
|
|
|
|
3.8
|
%
|
|
|
|
3.1
|
%
|
|
Subaru
|
|
|
|
4.1
|
%
|
|
|
|
2.6
|
%
|
|
Mercedes
|
|
|
|
0.7
|
%
|
|
|
|
0.6
|
%
|
|
Other
|
|
|
|
0.9
|
%
|
|
|
|
1.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Selected Same Store Data)
|
|
|
|
|
|
|
Unaudited
|
|
|
Three Months Ended
|
|
|
|
|
June 30,
|
|
|
|
|
2009
vs.
2008
|
|
|
|
2008
vs.
2007
|
|
Same store revenue:
|
|
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
|
|
(36.8)
|
%
|
|
|
|
(21.0)
|
%
|
|
Chrysler Brands
|
|
|
|
(41.4)
|
%
|
|
|
|
(32.8)
|
%
|
|
General Motors & Saturn
|
|
|
|
(35.3)
|
%
|
|
|
|
(7.8)
|
%
|
|
Toyota
|
|
|
|
(45.3)
|
%
|
|
|
|
(11.7)
|
%
|
|
All other brands
|
|
|
|
(30.0)
|
%
|
|
|
|
(18.5)
|
%
|
|
Used vehicle retail sales
|
|
|
|
2.3
|
%
|
|
|
|
(21.6)
|
%
|
|
Used wholesale sales
|
|
|
|
(31.2)
|
%
|
|
|
|
(20.9)
|
%
|
|
Total vehicle sales (excluding fleet)
|
|
|
|
(26.7)
|
%
|
|
|
|
(21.1)
|
%
|
|
Finance & insurance sales
|
|
|
|
(34.8)
|
%
|
|
|
|
(20.5)
|
%
|
|
Service, body and parts sales
|
|
|
|
(5.2)
|
%
|
|
|
|
(1.2)
|
%
|
|
Total sales (excluding fleet)
|
|
|
|
(24.2)
|
%
|
|
|
|
(19.1)
|
%
|
|
Total gross profit (excluding fleet)
|
|
|
|
(13.4)
|
%
|
|
|
|
(19.7)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LITHIA MOTORS, INC.
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
Six Months Ended
|
|
|
|
|
|
%
|
|
|
|
|
|
June 30,
|
|
|
|
Increase
|
|
Increase
|
|
|
|
|
|
2009
|
|
2008
|
|
|
|
(Decrease)
|
|
(Decrease)
|
|
New vehicle sales
|
|
|
|
$
|
370,561
|
|
|
$
|
598,447
|
|
|
|
|
$
|
(227,886
|
)
|
|
(38.1
|
)
|
%
|
|
Used vehicle sales
|
|
|
|
|
246,078
|
|
|
|
275,933
|
|
|
|
|
|
(29,855
|
)
|
|
(10.8
|
)
|
|
|
Finance and insurance
|
|
|
|
|
26,570
|
|
|
|
40,335
|
|
|
|
|
|
(13,765
|
)
|
|
(34.1
|
)
|
|
|
Service, body and parts
|
|
|
|
|
125,091
|
|
|
|
132,621
|
|
|
|
|
|
(7,530
|
)
|
|
(5.7
|
)
|
|
|
Fleet and other revenues
|
|
|
|
|
1,133
|
|
|
|
2,342
|
|
|
|
|
|
(1,209
|
)
|
|
(51.6
|
)
|
|
|
Total revenues
|
|
|
|
|
769,433
|
|
|
|
1,049,678
|
|
|
|
|
|
(280,245
|
)
|
|
(26.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
|
620,341
|
|
|
|
871,921
|
|
|
|
|
|
(251,580
|
)
|
|
(28.9
|
)
|
|
|
Gross profit
|
|
|
|
|
149,092
|
|
|
|
177,757
|
|
|
|
|
|
(28,665
|
)
|
|
(16.1
|
)
|
|
|
Asset impairment charges
|
|
|
|
|
-
|
|
|
|
294,075
|
|
|
|
|
|
(294,075
|
)
|
|
(100.0
|
)
|
|
|
SG&A expense
|
|
|
|
|
123,794
|
|
|
|
152,302
|
|
|
|
|
|
(28,508
|
)
|
|
(18.7
|
)
|
|
|
Depreciation and amortization
|
|
|
|
|
8,065
|
|
|
|
8,559
|
|
|
|
|
|
(494
|
)
|
|
(5.8
|
)
|
|
|
Income (loss) from operations
|
|
|
|
|
17,233
|
|
|
|
(277,179
|
)
|
|
|
|
|
294,412
|
|
|
106.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Floorplan interest expense
|
|
|
|
|
(5,122
|
)
|
|
|
(9,458
|
)
|
|
|
|
|
(4,336
|
)
|
|
(45.8
|
)
|
|
|
Other interest expense
|
|
|
|
|
(6,602
|
)
|
|
|
(8,420
|
)
|
|
|
|
|
(1,818
|
)
|
|
(21.6
|
)
|
|
|
Other income, net
|
|
|
|
|
1,423
|
|
|
|
1,123
|
|
|
|
|
|
300
|
|
|
26.7
|
|
|
|
Income (loss) from continuing
operations before
income taxes
|
|
|
|
|
6,932
|
|
|
|
(293,934
|
)
|
|
|
|
|
300,866
|
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (benefit)
|
|
|
|
|
2,798
|
|
|
|
(92,619
|
)
|
|
|
|
|
95,417
|
|
|
NM
|
|
|
|
Income tax (benefit) rate
|
|
|
|
|
40.3
|
%
|
|
|
(31.5
|
)
|
%
|
|
|
|
|
|
|
|
Income (loss) from continuing
operations
|
|
|
|
|
4,134
|
|
|
|
(201,315
|
)
|
|
|
|
|
205,449
|
|
|
NM
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations,
net of income tax
|
|
|
|
|
(1,451
|
)
|
|
|
(5,122
|
)
|
|
|
|
|
(3,671
|
)
|
|
(60.0
|
)
|
|
|
Gain (Loss) from disposal activities,
net of income tax
|
|
|
|
|
2,309
|
|
|
|
(39,508
|
)
|
|
|
|
|
41,817
|
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
4,992
|
|
|
$
|
(245,945
|
)
|
|
|
|
|
250,937
|
|
|
NM
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
|
|
0.20
|
|
|
|
(10.08
|
)
|
|
|
|
|
10.28
|
|
|
NM
|
|
%
|
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations,
net of income tax
|
|
|
|
|
(0.07
|
)
|
|
|
(0.26
|
)
|
|
|
|
|
|
|
|
|
Gain (loss) from disposal activities,
net of income tax
|
|
|
|
|
0.11
|
|
|
|
(1.98
|
)
|
|
|
|
|
|
|
|
|
Net income (loss) per share
|
|
|
|
$
|
0.24
|
|
|
$
|
(12.31
|
)
|
|
|
|
$
|
12.55
|
|
|
NM
|
|
|
|
Diluted shares outstanding
|
|
|
|
|
20,960
|
|
|
|
19,973
|
|
|
|
|
|
987
|
|
|
4.9
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM – not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LITHIA MOTORS, INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Continuing Operations)
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
%
|
|
|
Unaudited
|
|
|
|
June 30,
|
|
|
|
Increase
|
|
|
Increase
|
|
|
|
|
|
|
2009
|
|
2008
|
|
|
|
(Decrease)
|
|
|
(Decrease)
|
|
|
Unit sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
|
|
|
|
|
12,382
|
|
|
20,717
|
|
|
|
|
|
(8,335
|
)
|
|
(40.2
|
)
|
%
|
|
Used - retail vehicle
|
|
|
|
|
13,412
|
|
|
12,911
|
|
|
|
|
|
501
|
|
|
3.9
|
|
|
|
Used - wholesale
|
|
|
|
|
5,740
|
|
|
8,269
|
|
|
|
|
|
(2,529
|
)
|
|
(30.6
|
)
|
|
|
Total units sold
|
|
|
|
|
31,534
|
|
|
41,897
|
|
|
|
|
|
(10,363
|
)
|
|
(24.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling price:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
|
|
|
|
$
|
29,927
|
|
$
|
28,887
|
|
|
|
|
$
|
1,040
|
|
|
3.6
|
|
%
|
|
Used - retail vehicle
|
|
|
|
|
15,986
|
|
|
17,380
|
|
|
|
|
|
(1,394
|
)
|
|
(8.0
|
)
|
|
|
Used - wholesale
|
|
|
|
|
5,518
|
|
|
6,233
|
|
|
|
|
|
(715
|
)
|
|
(11.5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin/profit data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle retail
|
|
|
|
|
8.4
|
%
|
|
7.8
|
|
%
|
|
|
60 bps
|
|
|
|
|
|
Used vehicle retail
|
|
|
|
|
13.8
|
%
|
|
12.1
|
|
%
|
|
|
170 bps
|
|
|
|
|
|
Used vehicle wholesale
|
|
|
|
|
1.2
|
%
|
|
(2.0
|
)
|
%
|
|
|
320 bps
|
|
|
|
|
|
Service, body & parts
|
|
|
|
|
48.7
|
%
|
|
48.2
|
|
%
|
|
|
50 bps
|
|
|
|
|
|
Finance & insurance
|
|
|
|
|
100.0
|
%
|
|
100.0
|
|
%
|
|
|
|
-
|
|
|
|
|
|
Gross profit margin
|
|
|
|
|
19.4
|
%
|
|
16.9
|
|
%
|
|
|
250 bps
|
|
|
|
|
|
New retail gross profit/unit
|
|
|
|
$
|
2,505
|
|
$
|
2,254
|
|
|
|
|
$
|
251
|
|
|
|
|
|
Used retail gross profit/unit
|
|
|
|
|
2,199
|
|
|
2,097
|
|
|
|
|
|
102
|
|
|
|
|
|
Used wholesale gross profit/unit
|
|
|
|
|
69
|
|
|
(123
|
)
|
|
|
|
|
192
|
|
|
|
|
|
Finance & insurance/retail unit
|
|
|
|
|
1,030
|
|
|
1,199
|
|
|
|
|
|
(169
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue mix:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicles
|
|
|
|
|
48.2
|
%
|
|
57.0
|
|
%
|
|
|
|
|
|
|
|
|
Used retail vehicles
|
|
|
|
|
27.9
|
%
|
|
21.4
|
|
%
|
|
|
|
|
|
|
|
|
Used wholesale vehicles
|
|
|
|
|
4.1
|
%
|
|
4.9
|
|
%
|
|
|
|
|
|
|
|
|
Finance and insurance, net
|
|
|
|
|
3.4
|
%
|
|
3.9
|
|
%
|
|
|
|
|
|
|
|
|
Service and parts
|
|
|
|
|
16.3
|
%
|
|
12.6
|
|
%
|
|
|
|
|
|
|
|
|
Fleet and other
|
|
|
|
|
0.1
|
%
|
|
0.2
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LITHIA MOTORS, INC.
|
|
|
|
|
|
|
|
|
(Continuing operations)
|
|
|
|
Six Months Ended
|
|
Unaudited
|
|
|
|
June 30,
|
|
|
|
|
|
2009
|
|
2008
|
|
New vehicle unit sales brand mix:
|
|
|
|
|
|
|
|
|
|
|
Chrysler Brands
|
|
|
|
31.0
|
%
|
|
|
31.4
|
%
|
|
General Motors & Saturn
|
|
|
|
16.6
|
%
|
|
|
18.0
|
%
|
|
Toyota
|
|
|
|
14.7
|
%
|
|
|
16.1
|
%
|
|
Honda
|
|
|
|
9.5
|
%
|
|
|
9.3
|
%
|
|
Ford
|
|
|
|
4.8
|
%
|
|
|
4.1
|
%
|
|
BMW
|
|
|
|
5.4
|
%
|
|
|
4.8
|
%
|
|
Hyundai
|
|
|
|
4.1
|
%
|
|
|
3.7
|
%
|
|
Nissan
|
|
|
|
3.9
|
%
|
|
|
5.0
|
%
|
|
Volkswagen, Audi
|
|
|
|
3.6
|
%
|
|
|
2.8
|
%
|
|
Subaru
|
|
|
|
4.3
|
%
|
|
|
2.6
|
%
|
|
Mercedes
|
|
|
|
0.7
|
%
|
|
|
0.5
|
%
|
|
Other
|
|
|
|
1.4
|
%
|
|
|
1.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
(Selected same store data)
|
|
|
|
|
|
Unaudited
|
|
|
|
Six Months Ended
|
|
|
|
|
|
June 30,
|
|
|
|
|
|
2009
vs.
2008
|
|
|
2008
vs.
2007
|
|
Same store revenue:
|
|
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
|
|
(37.8
|
)
|
%
|
|
|
(17.4
|
)
|
%
|
|
Chrysler Brands
|
|
|
|
(40.4
|
)
|
%
|
|
|
(25.3
|
)
|
%
|
|
General Motors & Saturn
|
|
|
|
(40.3
|
)
|
%
|
|
|
(7.6
|
)
|
%
|
|
Toyota
|
|
|
|
(44.9
|
)
|
%
|
|
|
(4.9
|
)
|
%
|
|
All other brands
|
|
|
|
(31.0
|
)
|
%
|
|
|
(18.6
|
)
|
%
|
|
Used vehicle retail sales
|
|
|
|
(4.4
|
)
|
%
|
|
|
(16.0
|
)
|
%
|
|
Used wholesale sales
|
|
|
|
(39.4
|
)
|
%
|
|
|
(14.4
|
)
|
%
|
|
Total vehicle sales (excluding fleet)
|
|
|
|
(29.3
|
)
|
%
|
|
|
(16.8
|
)
|
%
|
|
Finance & insurance sales
|
|
|
|
(33.6
|
)
|
%
|
|
|
(16.4
|
)
|
%
|
|
Service, body and parts sales
|
|
|
|
(5.5
|
)
|
%
|
|
|
1.3
|
|
%
|
|
Total sales (excluding fleet)
|
|
|
|
(26.4
|
)
|
%
|
|
|
(14.9
|
)
|
%
|
|
Total gross profit (excluding fleet)
|
|
|
|
(15.5
|
)
|
%
|
|
|
(17.1
|
)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LITHIA MOTORS, INC.
|
|
Balance sheet highlights (dollars in thousands)
|
|
Unaudited
|
|
|
|
|
|
June 30, 2009
|
|
|
December 31, 2008
|
|
Cash & cash equivalents
|
|
|
|
$
|
17,009
|
|
|
$
|
10,874
|
|
Trade receivables*
|
|
|
|
|
55,975
|
|
|
|
69,615
|
|
Inventory
|
|
|
|
|
300,130
|
|
|
|
422,812
|
|
Assets held for sale
|
|
|
|
|
140,021
|
|
|
|
161,423
|
|
Other current assets
|
|
|
|
|
8,878
|
|
|
|
31,828
|
|
Total current assets
|
|
|
|
|
522,013
|
|
|
|
696,552
|
|
|
|
|
|
|
|
|
|
|
Real estate, net
|
|
|
|
|
276,449
|
|
|
|
284,088
|
|
Equipment & other, net
|
|
|
|
|
49,956
|
|
|
|
62,188
|
|
Other assets
|
|
|
|
|
89,794
|
|
|
|
90,631
|
|
Total assets
|
|
|
|
$
|
938,212
|
|
|
$
|
1,133,459
|
|
|
|
|
|
|
|
|
|
|
Flooring notes payable
|
|
|
|
$
|
215,987
|
|
|
$
|
337,700
|
|
Liabilities related to assets held for sale
|
|
|
|
|
81,917
|
|
|
|
108,172
|
|
Current maturities of senior subordinated convertible notes
|
|
|
|
|
|
|
|
42,500
|
|
Current maturity of line of credit
|
|
|
|
|
68,000
|
|
|
|
|
Other current liabilities
|
|
|
|
|
96,971
|
|
|
|
108,656
|
|
Total current liabilities
|
|
|
|
|
462,875
|
|
|
|
597,028
|
|
|
|
|
|
|
|
|
|
|
Real estate debt
|
|
|
|
|
174,976
|
|
|
|
163,708
|
|
Other long-term debt
|
|
|
|
|
12,226
|
|
|
|
101,476
|
|
Other liabilities
|
|
|
|
|
30,512
|
|
|
|
22,904
|
|
Total liabilities
|
|
|
|
$
|
680,589
|
|
|
$
|
885,116
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
257,623
|
|
|
|
248,343
|
|
|
|
|
|
|
|
|
|
|
Total liabilities & shareholders' equity
|
|
|
|
$
|
938,212
|
|
|
$
|
1,133,459
|
|
|
|
|
|
|
|
|
|
|
*Note: Includes contracts-in-transit of $22,786 and $27,799 for 2009
and 2008
|
|
|
|
Other balance sheet data
|
|
|
|
|
|
|
|
|
Lt debt/total cap (excludes real estate)
|
|
|
|
5%
|
|
|
29%
|
|
Book value per basic share
|
|
|
|
$12.32
|
|
|
$12.30
|
|
|
|
|
|
|
|
|
|
|
Debt covenant ratios
|
|
|
|
|
|
|
|
|
|
|
Requirement
|
|
|
As of June 30, 2009
|
|
Minimum net worth
|
|
|
|
Not less than $175 million
|
|
|
$257.6 million
|
|
Fixed charge coverage ratio
|
|
|
|
Not less than 1.00 to 1
|
|
|
1.22 to 1
|
|
Cash flow leverage ratio
|
|
|
|
Not more than 3.75 to 1
|
|
|
2.86 to 1
|
|
Minimum current ratio
|
|
|
|
Not less than 1.05 to 1
|
|
|
1.12 to 1
|
|
The following table reconciles reported GAAP income (loss) per the
income statement to non-GAAP income (loss):
|
|
|
|
Unaudited
|
|
|
|
Three Months Ended June 30,
|
|
|
|
|
|
Net Income / (Loss)
|
|
|
Diluted earnings per
share
|
|
Continuing Operations
|
|
|
|
2009
|
|
2008
|
|
|
2009
|
|
2008
|
|
As reported
|
|
|
|
$
|
4,050
|
|
|
$
|
(201,208
|
)
|
|
|
$
|
0.19
|
|
|
$
|
(10.02
|
)
|
|
Goodwill impairment
|
|
|
|
|
-
|
|
|
|
193,638
|
|
|
|
|
-
|
|
|
|
9.65
|
|
|
Franchise value impairment
|
|
|
|
|
-
|
|
|
|
5,216
|
|
|
|
|
-
|
|
|
|
0.26
|
|
|
Other asset impairment
|
|
|
|
|
111
|
|
|
|
4,283
|
|
|
|
|
0.01
|
|
|
|
0.21
|
|
|
Gain on extinguishment of debt
|
|
|
|
|
(187
|
)
|
|
|
-
|
|
|
|
|
(0.01
|
)
|
|
|
-
|
|
|
Adjusted
|
|
|
|
$
|
3,974
|
|
|
$
|
1,929
|
|
|
|
$
|
0.19
|
|
|
$
|
0.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
|
|
|
$
|
(387
|
)
|
|
$
|
(42,576
|
)
|
|
|
$
|
(0.02
|
)
|
|
$
|
(2.12
|
)
|
|
Impairments and disposal loss
|
|
|
|
|
361
|
|
|
|
39,508
|
|
|
|
|
0.02
|
|
|
|
1.97
|
|
|
Adjusted
|
|
|
|
$
|
(26
|
)
|
|
$
|
(3,068
|
)
|
|
|
|
-
|
|
|
$
|
(0.15
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
|
|
|
$
|
3,663
|
|
|
$
|
(243,784
|
)
|
|
|
$
|
0.17
|
|
|
$
|
(12.14
|
)
|
|
Adjusted
|
|
|
|
$
|
3,948
|
|
|
$
|
(1,139
|
)
|
|
|
$
|
0.19
|
|
|
$
|
(0.05
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
Net Income / (Loss)
|
|
|
Diluted earnings per
share
|
|
Continuing Operations
|
|
|
|
2009
|
|
2008
|
|
|
2009
|
|
2008
|
|
As reported
|
|
|
|
$
|
4,134
|
|
|
$
|
(201,315
|
)
|
|
|
$
|
0.20
|
|
|
$
|
(10.08
|
)
|
|
Goodwill impairment
|
|
|
|
|
-
|
|
|
|
193,638
|
|
|
|
|
-
|
|
|
|
9.70
|
|
|
Franchise value impairment
|
|
|
|
|
-
|
|
|
|
5,216
|
|
|
|
|
-
|
|
|
|
0.26
|
|
|
Other asset impairment
|
|
|
|
|
336
|
|
|
|
4,283
|
|
|
|
|
0.02
|
|
|
|
0.21
|
|
|
Gain on extinguishment of debt
|
|
|
|
|
(785
|
)
|
|
|
-
|
|
|
|
|
(0.04
|
)
|
|
|
-
|
|
|
Adjusted
|
|
|
|
$
|
3,684
|
|
|
$
|
1,822
|
|
|
|
$
|
0.18
|
|
|
$
|
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
|
|
|
$
|
858
|
|
|
$
|
(44,630
|
)
|
|
|
$
|
0.04
|
|
|
$
|
(2.23
|
)
|
|
Impairments and disposal loss
|
|
|
|
|
(2,309
|
)
|
|
|
39,508
|
|
|
|
|
(0.11
|
)
|
|
|
1.98
|
|
|
Adjusted
|
|
|
|
$
|
(1,451
|
)
|
|
$
|
(5,122
|
)
|
|
|
$
|
(0.07
|
)
|
|
$
|
(0.26
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
|
|
|
$
|
4,992
|
|
|
$
|
(245,945
|
)
|
|
|
$
|
0.24
|
|
|
$
|
(12.31
|
)
|
|
Adjusted
|
|
|
|
$
|
2,233
|
|
|
$
|
(3,300
|
)
|
|
|
$
|
0.11
|
|
|
$
|
(0.17
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table reconciles GAAP cash flows from operations per
the statement of cash flows to non-GAAP cash flows from operations:
|
|
|
|
Consolidated Statement of Cash
Flows
|
|
|
Six Months Ended June 30, 2009
|
|
As reported
|
|
|
|
|
Cash flows from Operations
|
|
|
$74,316
|
|
Flooring notes payable: non-trade
|
|
|
(25,502)
|
|
Adjusted
|
|
|
$48,814
|
Lithia Motors, Inc.
Investor Relations Department, 541-776-6591
www.lithia.com
–
go to Investor Relations
