MEDFORD, OR -- (Marketwire) -- 07/25/12 -- Lithia Motors, Inc. (NYSE: LAD) today reported 2012 second quarter adjusted income from continuing operations of $19.9 million, or $0.76 per diluted share. This compares to a 2011 second quarter adjusted income from continuing operations of $14.4 million, or $0.54 per diluted share. Unadjusted net income from continuing operations for the second quarter of 2012 was $20.5 million or $0.78 per diluted share, compared to $14.7 million or $0.55 per diluted share for 2011.
As shown in the attached non-GAAP reconciliation table, the 2012 second quarter adjusted income from continuing operations is reduced to exclude a benefit of $0.02 per share for a non-core tax attribute. The 2011 second quarter adjusted results from continuing operations exclude a benefit of $0.01 per share for a tax item.
Second quarter 2012 revenue from continuing operations increased $174.6 million, or 26% to $847.1 million, compared to $672.5 million in the second quarter of 2011.
Second Quarter Year-over-Year Operating Highlights:
- New vehicle same store sales increased 34%
- Used vehicle retail same store sales increased 20%
- Service, body and parts same store sales increased 7%
- SG&A expense as a percentage of gross profit was 69.6%, a reduction of 160 basis points
- Earnings per share increased 41%; $0.76 is the highest second quarter EPS in company history
"We remain focused on improving our operations and increasing our market share," said Bryan DeBoer, President and CEO. "I'm proud of the results our team delivered in the second quarter. With that said, we still have opportunities in all facets of our business and our leaders continue to identify areas where performance can improve. Additionally, in many of our western markets, the new vehicle sales recovery has lagged national levels. This factor will serve as a future catalyst for growth."
For the first six months of 2012, revenue from continuing operations increased 28% to $1.6 billion as compared to $1.3 billion in 2011. Same store new vehicle sales increased 30%, used vehicle retail same store sales increased 19% and service, body and parts same store sales increased 6%. For the first six months of 2012 adjusted net income from continuing operations was $1.36 per share as compared to $0.87 per share in 2011. Unadjusted, for the first six months of 2012, net income from continuing operations was $1.42 per diluted share, compared to $0.86 per diluted share for 2011.
Corporate Development
On April 30, 2012, Lithia purchased a Chevrolet Cadillac store in Bellingham, Washington with estimated annual revenues of $40 million. On June 12, 2012, Lithia purchased GMC and Buick franchises in Fairbanks, Alaska, to combine with our Chevrolet store in the community. On June 25, 2012, Lithia was awarded Dodge and Ram franchises and opened a store in Las Cruces, New Mexico. Estimated annual revenues from the Fairbanks and Las Cruces franchises are $35 million.
Commenting on the acquisition activity, DeBoer said, "In the second quarter, we were able to identify several opportunities that fit our core strategy of seeking exclusive franchises in our markets. I am excited to welcome our new employees to the family."
Share Repurchases
During the second quarter, Lithia repurchased 741,092 shares of its Class A common stock at a weighted average price of $24.23 per share. For the first six months of 2012, Lithia repurchased 823,092 shares of its Class A common stock at a weighted average price of $24.17 per share.
The Board of Directors has increased the existing authorization by 1 million shares, bringing the total remaining repurchase authorization to 1,879,853 shares.
Chris Holzshu, SVP and Chief Financial Officer, commented, "We remain focused on the prudent allocation of capital. While our first choice remains acquisitions and internal investment, we are pleased to provide a dividend and opportunistically repurchase shares to return value to our shareholders."
Balance Sheet Update
Lithia ended the second quarter with $16 million in cash and $76 million in available credit on our credit facilities. In total, this represents approximately $92 million in available liquidity.
During the second quarter, Lithia strategically retired approximately $23 million in mortgages, and refinanced approximately $70 million of mortgages to extend the maturity dates. As a result, Lithia has no mortgage maturities until 2015, when approximately $13 million matures.
Dividend Payment
Lithia announced that the Board of Directors has approved a dividend of $0.10 per share for the second quarter 2012. Lithia will pay the dividend August 24, 2012 to shareholders of record on August 10, 2012.
Updated Outlook for 2012
Lithia projects its 2012 third quarter earnings within a range of $0.74 to $0.76 per diluted share. Full-year 2012 earnings are projected within a range of $2.69 to $2.75 per diluted share. Both projections are based on the following annual assumptions:
- Total revenues in range of $3.2 to $3.3 billion
- New vehicle same store sales increasing 22.0%
- New vehicle gross margin ranging from 7.3% to 7.6%
- Used vehicle same store sales increasing 16.0%
- Used vehicle gross margin ranging from 14.7% to 14.9%
- Service body and parts same store sales increasing 4.5%
- Service body and parts gross margin ranging from 48.3% to 48.5%
- Finance and insurance gross profit of $1,050 per unit
- Tax rate of 40%
- Average diluted shares outstanding of 26.1 million
- Capital expenditures of $48 million
- Guidance excludes the impact of future acquisitions, dispositions, and any potential non-core items
Second Quarter Earnings Conference Call and Updated Presentation
The second quarter conference call may be accessed at 10:00 a.m. ET today by telephone at 877-407-8029. An updated presentation highlighting the first 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 webcasts. A playback of the conference call will be available on July 25, 2012 through August 8, 2012 by calling 877-660-6853 (Conference ID: 397183, Account: 305).
About Lithia
Lithia Motors, Inc. is the ninth largest automotive retailer in the United States. Lithia sells 27 brands of new and all brands of used vehicles at 85 stores, which are located 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.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, which management believes are a benefit to shareholders. Forward-looking statements in this press release include our guidance regarding third quarter and full year 2012 results, the new vehicle sales recovery in western markets and incremental opportunities to improve our operational results. 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, which are made as of the date of this release.
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. These measures exclude certain items disclosed in the attached financial tables. Cash flows from operations were 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, 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 Statements of Operations (Unaudited)
(In thousands except per share data)
Three Months Ended
June 30, %
-------------------- Increase Increase
2012 2011 (Decrease) (Decrease)
--------- --------- ---------- ----------
Revenues:
New vehicle retail $ 470,424 $ 347,727 $ 122,697 35.3%
Used vehicle retail 212,767 176,591 36,176 20.5
Used vehicle wholesale 36,083 29,153 6,930 23.8
Finance and insurance 27,870 20,886 6,984 33.4
Service, body and parts 88,585 80,937 7,648 9.4
Fleet and other 11,394 17,193 (5,799) (33.7)
--------- --------- ---------- ----------
Total revenues 847,123 672,487 174,636 26.0
Cost of sales:
New vehicle retail 435,785 319,726 116,059 36.3
Used vehicle retail 181,023 149,590 31,433 21.0
Used vehicle wholesale 35,779 28,885 6,894 23.9
Service, body and parts 45,343 41,242 4,101 9.9
Fleet and other 11,004 15,907 (4,903) (30.8)
--------- --------- ---------- ----------
Total cost of sales 708,934 555,350 153,584 27.7
--------- --------- ---------- ----------
Gross profit 138,189 117,137 21,052 18.0
Other asset impairments - 490 (490) NM
SG&A expense 96,167 82,768 13,399 16.2
Depreciation and amortization 4,261 4,217 44 1.0
--------- --------- ---------- ----------
Income from operations 37,761 29,662 8,099 27.3
Floor plan interest expense (3,119) (3,359) (240) (7.1)
Other interest expense (2,549) (3,011) (462) (15.3)
Other income, net 820 171 649 379.5
--------- --------- ---------- ----------
Income from continuing
operations before income
taxes 32,913 23,463 9,450 40.3
Income tax expense (12,422) (8,777) 3,645 41.5
Income tax rate 37.7% 37.4%
--------- --------- ---------- ----------
Income from continuing
operations $ 20,491 $ 14,686 $ 5,805 39.5%
Income from discontinued
operations - 140 (140) NM
--------- --------- ---------- ----------
Net income $ 20,491 $ 14,826 $ 5,665 38.2%
Diluted net income per share:
Continuing operations $ 0.78 $ 0.55 $ 0.23 41.8%
Discontinued operations - - - -
--------- --------- ---------- ----------
Net income per share $ 0.78 $ 0.55 $ 0.23 41.8%
========= ========= ========== ==========
Diluted shares outstanding 26,185 26,860 (675) (2.5)%
NM - not meaningful
Lithia Motors, Inc.
Key Performance Metrics (Unaudited)
Three Months Ended
June 30, %
-------------------- Increase Increase
2012 2011 (Decrease) (Decrease)
--------- --------- ---------- ----------
Gross margin
New vehicle retail 7.4% 8.1% (70) bps
Used vehicle retail 14.9 15.3 (40) bps
Used vehicle wholesale 0.8 0.9 (10) bps
Finance and insurance 100.0 100.0 - bps
Service, body and parts 48.8 49.0 (20) bps
Fleet and Other 3.4 7.5 (410) bps
Gross profit margin 16.3 17.4 (110) bps
Unit sales
New vehicle retail 14,406 10,725 3,681 34.3%
Used vehicle retail 11,923 10,085 1,838 18.2
Used vehicle wholesale 4,621 3,767 854 22.7
Total units sold 30,950 24,577 6,373 25.9
Average selling price
New vehicle retail $ 32,655 $ 32,422 $ 233 0.7%
Used vehicle retail 17,845 17,510 335 1.9
Used vehicle wholesale 7,808 7,739 69 0.9
Average gross profit per unit
New vehicle retail $ 2,404 $ 2,611 $ (207) (7.9)%
Used vehicle retail 2,662 2,677 (15) (0.6)
Used vehicle wholesale 66 71 (5) (7.0)
Finance and insurance 1,059 1,004 55 5.5
Revenue mix
New vehicle retail 55.5% 51.7%
Used vehicle retail 25.1 26.3
Used vehicle wholesale 4.3 4.3
Finance and insurance, net 3.3 3.1
Service, body and parts 10.5 12.0
Fleet and other 1.3 2.6
Adjusted As reported
-------------------- ----------------------
Three Months Ended Three Months Ended
June 30, June 30,
-------------------- ----------------------
Other metrics 2012 2011 2012 2011
--------- --------- ---------- ----------
SG&A as a % of revenue 11.4% 12.4% 11.4% 12.3%
SG&A as a % of gross profit 69.6 71.2 69.6 70.7
Operating profit as a % of
revenue 4.5 4.4 4.5 4.4
Operating profit as a % of
gross profit 27.3 25.2 27.3 25.3
Pretax margin 3.9 3.5 3.9 3.5
Net profit margin 2.4 2.1 2.4 2.2
Lithia Motors, Inc.
Same Store Operating Highlights (Unaudited)
Three Months Ended
June 30, %
-------------------- Increase Increase
2012 2011 (Decrease) (Decrease)
--------- --------- ---------- ----------
Revenues
New vehicle retail $ 454,445 $ 339,427 $ 115,018 33.9%
Used vehicle retail 205,794 171,768 34,026 19.8
Used vehicle wholesale 34,828 28,209 6,619 23.5
Finance and insurance 27,086 20,163 6,923 34.3
Service, body and parts 83,960 78,598 5,362 6.8
Fleet and Other 9,613 17,043 (7,430) (43.6)
--------- --------- ----------
Total revenues $ 815,726 $ 655,208 $ 160,518 24.5
Gross profit
New vehicle retail $ 33,375 $ 27,328 $ 6,047 22.1%
Used vehicle retail 30,779 26,319 4,460 16.9
Used vehicle wholesale 291 257 34 13.2
Finance and insurance 27,086 20,163 6,923 34.3
Service, body and parts 40,089 37,779 2,310 6.1
Fleet and Other 195 813 (618) (76.0)
--------- --------- ----------
Total gross profit $ 131,815 $ 112,659 $ 19,156 17.0
Unit sales
New vehicle retail 13,939 10,486 3,453 32.9%
Used vehicle retail 11,546 9,847 1,699 17.3
Used vehicle wholesale 4,497 3,683 814 22.1
Total units sold 29,982 24,016 5,966 24.8
Average selling price
New vehicle retail $ 32,602 $ 32,370 $ 232 0.7%
Used vehicle retail 17,824 17,444 380 2.2
Used vehicle wholesale 7,745 7,659 86 1.1
Average gross profit per unit
New vehicle retail $ 2,394 $ 2,606 $ (212) (8.1)%
Used vehicle retail 2,666 2,673 (7) (0.3)
Used vehicle wholesale 65 70 (5) (7.1)
Finance and insurance 1,063 992 71 7.2
Lithia Motors, Inc.
Consolidated Statements of Operations (Unaudited)
(In thousands except per share data)
Six Months Ended
June 30, %
---------------------- Increase Increase
2012 2011 (Decrease) (Decrease)
---------- ---------- ---------- ----------
Revenues:
New vehicle retail $ 874,712 $ 648,367 $ 226,345 34.9%
Used vehicle retail 408,188 333,069 75,119 22.6
Used vehicle wholesale 70,419 58,690 11,729 20.0
Finance and insurance 53,290 40,185 13,105 32.6
Service, body and parts 175,033 154,698 20,335 13.1
Fleet and other 24,375 20,335 4,040 19.9
---------- ---------- ---------- ----------
Total revenues 1,606,017 1,255,344 350,673 27.9
Cost of sales:
New vehicle retail 808,947 597,760 211,187 35.3
Used vehicle retail 347,530 283,084 64,446 22.8
Used vehicle wholesale 69,697 58,023 11,674 20.1
Service, body and parts 90,198 79,242 10,956 13.8
Fleet and other 23,585 18,502 5,083 27.5
---------- ---------- ---------- ----------
Total cost of sales 1,339,957 1,036,611 303,346 29.3
---------- ---------- ---------- ----------
Gross profit 266,060 218,733 47,327 21.6
Other asset impairments 115 872 (757) (86.8)
SG&A expense 187,757 159,902 27,855 17.4
Depreciation and
amortization 8,460 8,309 151 1.8
---------- ---------- ---------- ----------
Income from operations 69,728 49,650 20,078 40.4
Floor plan interest expense (6,069) (5,821) 248 4.3
Other interest expense (5,296) (6,303) (1,007) (16.0)
Other income, net 1,319 248 1,071 431.9
---------- ---------- ---------- ----------
Income from continuing
operations before income
taxes 59,682 37,774 21,908 (58.0)
Income tax expense (22,395) (14,700) 7,695 52.3
Income tax rate 37.5% 38.9%
---------- ---------- ---------- ----------
Income from continuing
operations $ 37,287 $ 23,074 $ 14,213 (61.6)%
Income from discontinued
operations - 457 (457) NM
---------- ---------- ---------- ----------
Net income $ 37,287 $ 23,531 $ 13,756 58.5%
Diluted net income per
share:
Continuing operations $ 1.42 $ 0.86 $ 0.56 (65.1)%
Discontinued operations - 0.02 (0.02) NM
---------- ---------- ---------- ----------
Net income per share $ 1.42 $ 0.88 $ 0.54 (61.4)%
========== ========== ========== ==========
Diluted shares outstanding 26,331 26,779 (448) (1.7)%
NM - not meaningful
Lithia Motors, Inc.
Key Performance Metrics (Unaudited)
Six Months Ended
June 30, %
-------------------- Increase Increase
2012 2011 (Decrease) (Decrease)
--------- --------- ---------- ----------
Gross margin
New vehicle retail 7.5% 7.8% (30) bps
Used vehicle retail 14.9 15.0 (10) bps
Used vehicle wholesale 1.0 1.1 (10) bps
Finance and insurance 100.0 100.0 - bps
Service, body and parts 48.5 48.8 (30) bps
Fleet and Other 3.2 9.0 (580) bps
Gross profit margin 16.6 17.4 (80) bps
Unit sales
New vehicle retail 26,875 20,250 6,625 32.7%
Used vehicle retail 23,431 19,591 3,840 19.6
Used vehicle wholesale 9,214 7,509 1,705 22.7
Total units sold 59,520 47,350 12,170 25.7
Average selling price
New vehicle retail $ 32,547 $ 32,018 $ 529 1.7%
Used vehicle retail 17,421 17,001 420 2.5
Used vehicle wholesale 7,643 7,816 (173) (2.2)
Average gross profit per unit
New vehicle retail $ 2,447 $ 2,499 $ (52) (2.1)%
Used vehicle retail 2,589 2,551 38 1.5
Used vehicle wholesale 78 89 (11) (12.4)
Finance and insurance 1,059 1,009 50 5.0
Revenue mix
New vehicle retail 54.5% 51.6%
Used vehicle retail 25.4 26.5
Used vehicle wholesale 4.4 4.8
Finance and insurance, net 3.3 3.2
Service, body and parts 10.9 12.3
Fleet and other 1.5 1.6
Adjusted As reported
-------------------- ----------------------
Six Months Ended Six Months Ended
June 30, June 30,
-------------------- ----------------------
Other metrics 2012 2011 2012 2011
--------- --------- ---------- ----------
SG&A as a % of revenue 11.7% 12.8% 11.7% 12.7%
SG&A as a % of gross profit 70.8 73.4 70.6 73.1
Operating profit as a % of
revenue 4.3 4.0 4.3 4.0
Operating profit as a % of
gross profit 26.0 22.8 26.2 22.7
Pretax margin 3.7 3.0 3.7 3.0
Net profit margin 2.2 1.9 2.3 1.8
Lithia Motors, Inc.
Same Store Operating Highlights (Unaudited)
Six Months Ended
June 30, %
---------------------- Increase Increase
2012 2011 (Decrease) (Decrease)
---------- ---------- ---------- ----------
Revenues
New vehicle retail $ 825,948 $ 636,106 $ 189,842 29.8%
Used vehicle retail 388,771 325,676 63,095 19.4
Used vehicle wholesale 66,789 56,944 9,845 17.3
Finance and insurance 50,825 38,627 12,198 31.6
Service, body and parts 159,943 151,122 8,821 5.8
Fleet and Other 19,376 19,953 (577) (2.9)
---------- ---------- ----------
Total revenues $1,511,652 $1,228,428 $ 283,224 23.1
Gross profit
New vehicle retail $ 61,748 $ 49,520 $ 12,228 24.7%
Used vehicle retail 58,191 48,629 9,562 19.7
Used vehicle wholesale 670 649 21 3.2
Finance and insurance 50,825 38,627 12,198 31.6
Service, body and parts 75,678 71,915 3,763 5.2
Fleet and Other 404 967 (563) (58.2)
---------- ---------- ----------
Total gross profit $ 247,516 $ 210,307 $ 37,209 17.7
Unit sales
New vehicle retail 25,570 19,877 5,693 28.6%
Used vehicle retail 22,403 19,197 3,206 16.7
Used vehicle wholesale 8,809 7,354 1,455 19.8
Total units sold 56,782 46,428 10,354 22.3
Average selling price
New vehicle retail $ 32,301 $ 32,002 $ 299 0.9%
Used vehicle retail 17,354 16,965 389 2.3
Used vehicle wholesale 7,582 7,743 (161) (2.1)
Average gross profit per
unit
New vehicle retail $ 2,415 $ 2,491 $ (76) (3.1)%
Used vehicle retail 2,597 2,533 64 2.5
Used vehicle wholesale 76 88 (12) (13.6)
Finance and insurance 1,059 989 70 7.1
Lithia Motors, Inc.
Other Highlights (Unaudited)
As of
June 30, December 31, June 30,
----------------------------------------
2012 2011 2011
------------ ------------ ------------
Days Supply(1)
New vehicle inventory 74 62 68
Used vehicle inventory 52 52 56
(1) Days supply calculated based on current inventory levels, excluding in-
transit vehicles, and a 30-day historical cost of sales level.
Financial covenants
Requirement As of June 30, 2012
-------------------------- -------------------
Current ratio Not less than 1.20 to 1 1.30 to 1
Fixed charge coverage ratio Not less than 1.20 to 1 1.49 to 1
Leverage ratio Not more than 5.00 to 1 2.19 to 1
Funded debt restriction Not more than $375 million $180.5 million
Lithia Motors, Inc.
Revenue Mix (Unaudited)
Three months ended Six months ended
June 30, June 30,
------------------ ------------------
2012 2011 2012 2011
-------- -------- -------- --------
New vehicle unit sales brand mix
Chrysler 32.8% 30.5% 32.5% 29.7%
General Motors 15.8 16.9 15.1 16.7
Toyota 13.4 11.4 13.0 12.9
Subaru 6.7 4.7 7.0 5.3
Honda, Acura 7.1 7.7 6.8 7.9
BMW, Mini 6.3 7.3 6.5 6.1
Ford 4.9 6.0 5.2 5.9
Hyundai 4.6 5.5 4.7 5.8
Nissan 2.5 3.3 2.8 3.8
Mercedes 2.4 2.1 2.5 1.5
Volkswagen, Audi 1.8 2.4 1.9 2.3
Kia 0.8 1.2 1.0 1.2
Mazda 0.5 0.6 0.6 0.5
Other 0.4 0.4 0.4 0.4
Three months ended Six months ended
June 30, June 30,
------------------ ------------------
2012 2011 2012 2011
-------- -------- -------- --------
Revenue geographic mix
Texas 25.1% 24.4% 24.8% 24.7%
Oregon 20.1 20.9 20.8 18.9
California 10.2 9.6 10.3 10.0
Washington 9.6 9.2 9.4 9.9
Montana 8.8 8.1 8.6 8.2
Alaska 8.5 9.6 8.5 9.3
Idaho 5.1 5.5 5.2 6.0
Nevada 4.4 4.3 4.6 4.6
Iowa 4.7 5.3 4.6 5.3
North Dakota 2.4 2.1 2.2 2.1
New Mexico 1.1 1.0 1.0 1.0
As of July 27,
2012
------------------
# of % of
Current store count mix stores total
-------- --------
Chrysler 23 27.1%
General Motors 13 15.3
Honda, Acura 9 10.6
Toyota 8 9.4
BMW, MINI 7 8.2
Hyundai 6 7.1
Ford 5 5.9
Nissan 3 3.5
Mercedes 3 3.5
Subaru 3 3.5
Kia 2 2.4
Other 2 2.4
Volkswagen, Audi 1 1.1
Lithia Motors, Inc.
Consolidated Balance Sheets (Unaudited)
(In thousands except per share data)
June 30, 2012 December 31, 2011
----------------- -----------------
Cash and cash equivalents $ 16,247 $ 20,851
Trade receivables, net 117,747 99,407
Inventories, net 617,568 506,484
Deferred income taxes 3,976 4,730
Other current assets 10,588 16,719
----------------- -----------------
Total current assets $ 766,126 $ 648,191
Property and equipment, net 387,652 373,779
Goodwill 22,608 18,958
Franchise value 59,319 59,095
Deferred income taxes 29,849 29,270
Other non-current assets 18,021 16,840
----------------- -----------------
Total assets $ 1,283,575 1,146,133
================= =================
Floor plan notes payable $ 13,743 $ 114,760
Floor plan notes payable: non trade 482,390 229,180
Current maturities of long-term debt 7,718 8,221
Trade payables 40,196 31,712
Accrued liabilities 79,758 72,711
----------------- -----------------
Total current liabilities $ 623,805 456,584
Long-term debt 224,746 278,653
Deferred revenue 30,110 25,146
Other long-term liabilities 19,921 18,629
----------------- -----------------
Total liabilities $ 898,582 $ 779,012
----------------- -----------------
Class A common stock 263,559 279,366
Class B common stock 437 468
Additional paid-in capital 10,949 10,918
Accumulated other comprehensive loss (3,718) (4,508)
Retained earnings 113,766 80,877
----------------- -----------------
Total liabilities & stockholders'
equity $ 1,283,575 $ 1,146,133
================= =================
Lithia Motors, Inc.
Summarized Cash Flow from Operations (Unaudited)
(In thousands)
Six Months Ended
June 30,
------------------------
2012 2011
----------- -----------
Net income $ 37,287 $ 23,531
Adjustments to reconcile net income to net cash
used in operating activities:
Asset impairments 115 872
Depreciation and amortization 8,460 8,485
Depreciation and amortization within discontinued
operations - 21
Stock-based compensation 1,512 1,034
Gain on disposal of assets (983) (190)
Loss from disposal activities within discontinued
operations - 53
Deferred income taxes 302 2,060
Excess tax benefit from share-based payment
arrangements (1,026) (278)
(Increase) decrease:
Trade receivables, net (18,305) (6,579)
Inventories (109,592) (60,498)
Other current assets 4,680 (461)
Other non-current assets (1,847) (884)
Increase (decrease):
Floor plan notes payable (94,305) 1,744
Trade payables 7,289 4,679
Accrued liabilities 7,671 7,757
Other long-term liabilities and deferred revenue 6,700 1,418
----------- -----------
Net cash used in operating activities $ (152,042) $ (17,236)
=========== ===========
Lithia Motors, Inc.
Reconciliation of Non-GAAP Cash Flow from Operations (Unaudited)
(In thousands)
Six Months Ended
June 30,
------------------------
Net cash provided by (used in) operating
activities 2012 2011
----------- -----------
As reported $ (152,042) $ (17,236)
Floor plan notes payable, non-trade 251,844 65,789
----------- -----------
Adjusted $ 99,802 $ 48,553
=========== ===========
Lithia Motors, Inc.
Reconciliation of Certain Non-GAAP Financial Measures (Unaudited)
(In thousands, except for per share data)
Three Months Ended June 30, 2012
-------------------------------------------
As reported Tax attribute Adjusted
------------- ------------- -------------
Income from continuing
operations before income taxes $ 32,913 $ - $ 32,913
Income tax expense (12,422) (578) (13,000)
------------- ------------- -------------
Net income from continuing
operations $ 20,491 $ (578) $ 19,913
============= ============= =============
Diluted earnings per share from
continuing operations $ 0.78 $ (0.02) $ 0.76
Diluted share count 26,185
Three Months ended June 30, 2011
--------------------------------------------------
Asset
Impairment Reversal of
and stock based
disposal comp tax
As reported gain shortfall Adjusted
----------- ----------- ----------- -----------
Asset impairments $ 490 $ (490) $ - $ -
Selling, general and
administrative 82,768 580 - 83,348
Income from operations 29,662 (90) - 29,572
Income from continuing
operations before
income taxes $ 23,463 $ (90) $ - $ 23,373
Income tax expense (8,777) 37 (186) (8,926)
----------- ----------- ----------- -----------
Net income from
continuing operations $ 14,686 $ (53) $ (186) $ 14,447
=========== =========== =========== ===========
Diluted earnings per
share from continuing
operations $ 0.55 $ - $ (0.01) $ 0.54
Diluted share count 26,860
Lithia Motors, Inc.
Reconciliation of Certain Non-GAAP Financial Measures (Unaudited)
(In thousands, except for per share data)
Six Months Ended June 30, 2012
-----------------------------------------------------
Asset
impairment
and
As disposal Equity Tax
reported gain investment attribute Adjusted
-------- ---------- ---------- --------- --------
Asset impairments $ 115 $ (115) $ - $ - $ -
Selling, general and
administrative 187,757 739 - - 188,496
Income from
operations 69,728 (624) - - 69,104
Other income, net 1,319 - (244) - 1,075
Income from
continuing
operations before
income taxes $ 59,682 $ (624) $ (244) $ - $ 58,814
Income tax expense (22,395) 244 95 (1,072) (23,128)
-------- ---------- ---------- --------- --------
Net income from
continuing
operations $ 37,287 $ (380) $ (149) $ (1,072) $ 35,686
======== ========== ========== ========= ========
Diluted earnings per
share from
continuing
operations $ 1.42 $ (0.01) $ (0.01) $ (0.04) $ 1.36
Diluted share count 26,331
Six Months Ended June 30, 2011
-------------------------------------
Asset
impairment
and
disposal
As reported gain Adjusted
----------- ----------- -----------
Asset impairments $ 872 $ (872) $ -
Selling, general and administrative 159,902 580 160,482
Income from operations 49,650 292 49,942
Income from continuing operations
before income taxes $ 37,774 $ 292 $ 38,066
Income tax expense (14,700) (116) (14,816)
----------- ----------- -----------
Net income from continuing operations $ 23,074 $ 176 $ 23,250
=========== =========== ===========
Diluted earnings per share from
continuing operations $ 0.86 $ 0.01 $ 0.87
Diluted share count 26,779
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Contact:
John North
VP Finance and Controller
(541) 618-5748
