Lithia Motors Reports Adjusted EPS of $1.05 for Second Quarter 2013, Revenue Up 23%; Increases 2013 Outlook
MEDFORD, OR -- (Marketwired) -- 07/24/13 -- Lithia Motors, Inc. (NYSE: LAD) today reported the highest quarterly adjusted net income in Company history, and a 42% increase in adjusted net income per share from continuing operations for the second quarter 2013 over the prior year period.
2013 second quarter adjusted income from continuing operations was $27.4 million, or $1.05 per diluted share. This compares to 2012 second quarter adjusted income from continuing operations of $19.4 million, or $0.74 per diluted share.
Unadjusted net income from continuing operations for the second quarter of 2013 was $25.3 million, or $0.97 per diluted share, compared to $20.0 million, or $0.76 per diluted share for 2012. As shown in the attached non-GAAP reconciliation tables, the 2013 second quarter adjusted results from continuing operations exclude an $0.08 per share expense due to a non-core legal reserve related to a case filed in 2006, partially offset by a tax attribute. The 2012 second quarter adjusted results from continuing operations exclude a benefit of $0.02 per share related to a non-core tax attribute.
Second Quarter-over-Quarter Operating Highlights:
- New vehicle same store sales increased 19%
- Used vehicle retail same store sales increased 19%
- Service, body and parts same store sales increased 7%
- Adjusted SG&A expense as a percentage of gross profit decreased 330 basis points to 66%
Second quarter 2013 revenue from continuing operations increased $186.2 million, or 23%, to $1.0 billion from $822.3 million in the second quarter of 2012.
"We exceeded $1.0 billion in quarterly revenue for the first time in our history," said Bryan DeBoer, President and CEO. "The combination of acquisitions and same store sales growth increased revenue by 23% over the prior year. Our adjusted net income from continuing operations increased 41% from the prior year, significantly above the growth in revenue, as we increase our operating leverage. Based on our results through the first six months of the year, we are well on our way towards the first milestone for growth we established late in 2012, where total revenue increases by 25% from full year 2012 results."
For the first six months of 2013, adjusted net income per share from continuing operations increased 42% to $1.89 compared to $1.33 for the first six months of 2012. Unadjusted, for the first six months of 2013, net income from continuing operations was $1.81 per diluted share, compared to $1.39 per diluted share for the first six months of 2012.
Chris Holzshu, SVP and CFO said, "Adjusted SG&A as a percentage of gross profit was 66.0% in the second quarter, and 67.5% for the first six months of 2013. This is a record result and is primarily a result of our stores' continued focus on maintaining incremental throughput, or the percentage of additional same store gross profit dollars that we retain after deducting selling costs, above 50%. On a same store basis and adjusted for certain non-core items, incremental throughput was 56.5% in the second quarter and 52.9% for the first six month of 2013."
Corporate Development
On June 10, 2013, we purchased BMW, Honda and Volkswagen stores in Salem, Oregon, with estimated annualized revenues of $110 million. In April 2013, we opened a MINI store in Anchorage, Alaska with estimated annualized revenues of $13 million.
Bryan DeBoer, President and CEO, stated, "We continue to seek exclusive franchises in the markets we serve and view acquisitions as one of the long term drivers of growth for Lithia. We believe that additional acquisition opportunities meeting both our strategic and return requirements remain available in the marketplace."
Balance Sheet Update
We ended the second quarter with $20 million in cash and $91 million in available credit on our credit facilities. Additionally, approximately $164 million of operating real estate is currently unfinanced, which we estimate could provide up to an additional $123 million in available liquidity, for total liquidity of $234 million.
Dividend Payment
Lithia announced that the Board of Directors has approved a dividend of $0.13 per share for the second quarter 2013. Lithia will pay the dividend August 23, 2013 to shareholders of record on August 9, 2013.
Increased Outlook for 2013
We project 2013 third quarter earnings of $1.06 to $1.08 per diluted share and full year 2013 earnings of $3.80 to $3.85 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 17.0%
- New vehicle gross margin of 6.6% to 6.8%
- Used vehicle same store sales increasing 16.5%
- Used vehicle gross margin of 14.7% to 14.9%
- Service body and parts same store sales increasing 7.0%
- Service body and parts gross margin of 48.8% to 49.0%
- 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
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 second 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. A playback of the conference call will be available on July 24, 2013 through August 8, 2013 by calling 877-660-6853 (Conference ID: 417561).
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 91 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 %
June 30, Increase Increase
----------------------
2013 2012 (Decrease) (Decrease)
---------- ---------- ---------- ----------
Revenues:
New vehicle retail $ 569,487 $ 455,939 $ 113,548 24.9%
Used vehicle retail 258,465 207,341 51,124 24.7
Used vehicle wholesale 37,691 35,106 2,585 7.4
Finance and insurance 34,218 27,184 7,034 25.9
Service, body and parts 94,462 85,456 9,006 10.5
Fleet and other 14,182 11,316 2,866 25.3
---------- ---------- ---------- ----------
Total revenues 1,008,505 822,342 186,163 22.6
Cost of sales:
New vehicle retail 530,699 422,373 108,326 25.6
Used vehicle retail 219,572 176,350 43,222 24.5
Used vehicle wholesale 36,996 34,810 2,186 6.3
Service, body and parts 47,769 43,782 3,987 9.1
Fleet and other 13,636 10,931 2,705 24.7
---------- ---------- ---------- ----------
Total cost of sales 848,672 688,246 160,426 23.3
---------- ---------- ---------- ----------
Gross profit 159,833 134,096 25,737 19.2
SG&A expense 109,283 92,990 16,293 17.5
Depreciation and
amortization 4,899 4,198 701 16.7
---------- ---------- ---------- ----------
Income from operations 45,651 36,908 8,743 23.7
Floor plan interest expense (3,036) (3,054) (18) (0.6)
Other interest expense (1,941) (2,530) (589) (23.3)
Other income, net 584 819 (235) (28.7)
---------- ---------- ---------- ----------
Income from continuing
operations before income
taxes 41,258 32,143 9,115 28.4
Income tax expense (15,977) (12,138) 3,839 31.6
Income tax rate 38.7% 37.8%
---------- ---------- ---------- ----------
Income from continuing
operations $ 25,281 $ 20,005 $ 5,276 26.4%
Income from discontinued
operations, net of tax 274 486 (212) (43.6)
---------- ---------- ---------- ----------
Net income $ 25,555 $ 20,491 $ 5,064 24.7%
Diluted net income per
share:
Continuing operations $ 0.97 $ 0.76 $ 0.21 27.6%
Discontinued operations 0.01 0.02 (0.01) (50.0)
---------- ---------- ---------- ----------
Net income per share $ 0.98 $ 0.78 $ 0.20 25.6%
========== ========== ========== ==========
Diluted shares outstanding 26,134 26,185 (51) (0.2)%
Lithia Motors, Inc.
Key Performance Metrics (Unaudited)
Three months ended %
June 30, Increase Increase
----------------------
2013 2012 (Decrease) (Decrease)
---------- ---------- ---------- ----------
Gross margin
New vehicle retail 6.8% 7.4% (60) bps
Used vehicle retail 15.0 14.9 10 bps
Used vehicle wholesale 1.8 0.8 100 bps
Finance and insurance 100.0 100.0 - bps
Service, body and parts 49.4 48.8 60 bps
Fleet and Other 3.8 3.4 40 bps
Gross profit margin 15.8 16.3 (50) bps
Unit sales
New vehicle retail 17,024 13,974 3,050 21.8%
Used vehicle retail 14,074 11,604 2,470 21.3
Used vehicle wholesale 5,241 4,512 729 16.2
Total units sold 36,339 30,090 6,249 20.8
Average selling price
New vehicle retail $ 33,452 $ 32,628 $ 824 2.5%
Used vehicle retail 18,365 17,868 497 2.8
Used vehicle wholesale 7,192 7,781 (589) (7.6)
Average gross profit per
unit
New vehicle retail $ 2,278 $ 2,402 $ (124) (5.2)%
Used vehicle retail 2,763 2,671 92 3.4
Used vehicle wholesale 133 66 67 101.5
Finance and insurance 1,100 1,063 37 3.5
Revenue mix
New vehicle retail 56.5% 55.4%
Used vehicle retail 25.6 25.2
Used vehicle wholesale 3.7 4.3
Finance and insurance, net 3.4 3.3
Service, body and parts 9.4 10.4
Fleet and other 1.4 1.4
Adjusted As reported
---------------------- ----------------------
Three months ended Three months ended
June 30, June 30,
---------------------- ----------------------
Other metrics 2013 2012 2013 2012
---------- ---------- ---------- ----------
SG&A as a % of revenue 10.5% 11.3% 10.8% 11.3%
SG&A as a % of gross profit 66.0 69.3 68.4 69.3
Operating profit as a % of
revenue 4.9 4.5 4.5 4.5
Operating profit as a % of
gross profit 30.9 27.5 28.6 27.5
Pretax margin 4.5 3.9 4.1 3.9
Net profit margin 2.7 2.4 2.5 2.4
NM - not meaningful
Lithia Motors, Inc.
Same Store Operating Highlights (Unaudited)
Three months ended %
June 30, Increase Increase
---------------------
2013 2012 (Decrease) (Decrease)
---------- ---------- ---------- ----------
Revenues
New vehicle retail $ 541,740 $ 455,658 $ 86,082 18.9%
Used vehicle retail 246,004 207,269 38,735 18.7
Used vehicle wholesale 35,609 35,065 544 1.6
Finance and insurance 32,582 27,011 5,571 20.6
Service, body and parts 91,445 85,427 6,018 7.0
Fleet and other 14,051 11,179 2,872 25.7
---------- ---------- ----------
Total revenues $ 961,431 $ 821,609 $ 139,822 17.0
Gross profit
New vehicle retail $ 36,597 $ 33,556 $ 3,041 9.1%
Used vehicle retail 37,102 30,971 6,131 19.8
Used vehicle wholesale 861 298 563 188.9
Finance and insurance 32,582 27,011 5,571 20.6
Service, body and parts 44,100 40,775 3,325 8.2
Fleet and other 407 246 161 65.4
---------- ---------- ----------
Total gross profit $ 151,649 $ 132,857 $ 18,792 14.1
Unit sales
New vehicle retail 16,212 13,966 2,246 16.1%
Used vehicle retail 13,457 11,603 1,854 16.0
Used vehicle wholesale 4,979 4,511 468 10.4
Total units sold 34,648 30,080 4,568 15.2
Average selling price
New vehicle retail $ 33,416 $ 32,626 $ 790 2.4%
Used vehicle retail 18,281 17,863 418 2.3
Used vehicle wholesale 7,152 7,773 (621) (8.0)
Average gross profit per unit
New vehicle retail $ 2,257 $ 2,403 $ (146) (6.1)%
Used vehicle retail 2,757 2,669 88 3.3
Used vehicle wholesale 173 66 107 162.1
Finance and insurance 1,098 1,056 42 4.0
Lithia Motors, Inc.
Consolidated Statements of Operations (Unaudited)
(In thousands except per share data)
Six months ended %
June 30, Increase Increase
------------------------
2013 2012 (Decrease) (Decrease)
----------- ----------- ----------- ----------
Revenues:
New vehicle retail $ 1,062,928 $ 848,885 $ 214,043 25.2%
Used vehicle retail 497,693 397,960 99,733 25.1
Used vehicle wholesale 77,197 68,463 8,734 12.8
Finance and insurance 65,881 52,060 13,821 26.5
Service, body and parts 184,902 169,000 15,902 9.4
Fleet and other 22,984 24,220 (1,236) (5.1)
----------- ----------- ----------- ----------
Total revenues 1,911,585 1,560,588 350,997 22.5
Cost of sales:
New vehicle retail 989,493 785,067 204,426 26.0
Used vehicle retail 423,827 338,692 85,135 25.1
Used vehicle wholesale 75,528 67,770 7,758 11.4
Service, body and parts 94,430 87,191 7,239 8.3
Fleet and other 22,036 23,438 (1,402) (6.0)
----------- ----------- ----------- ----------
Total cost of sales 1,605,314 1,302,158 303,156 23.3
----------- ----------- ----------- ----------
Gross profit 306,271 258,430 47,841 18.5
Asset impairments - 115 (115) (100.0)
SG&A expense 210,414 181,429 28,985 16.0
Depreciation and
amortization 9,620 8,336 1,284 15.4
----------- ----------- ----------- ----------
Income from operations 86,237 68,550 17,687 25.8
Floor plan interest
expense (6,485) (5,956) 529 8.9
Other interest expense (4,302) (5,257) (955) (18.2)
Other income, net 1,385 1,317 68 5.2
----------- ----------- ----------- ----------
Income from continuing
operations before income
taxes 76,835 58,654 18,181 31.0
Income tax expense (29,672) (22,015) 7,657 34.8
Income tax rate 38.6% 37.5%
----------- ----------- ----------- ----------
Income from continuing
operations $ 47,163 $ 36,639 $ 10,524 28.7%
Income from discontinued
operations, net of tax 447 648 (201) (31.0)
----------- ----------- ----------- ----------
Net income $ 47,610 $ 37,287 $ 10,323 27.7%
Diluted net income per
share:
Continuing operations $ 1.81 $ 1.39 $ 0.42 30.2%
Discontinued operations 0.01 0.03 (0.02) (66.7)
----------- ----------- ----------- ----------
Net income per share $ 1.82 $ 1.42 $ 0.40 28.2%
=========== =========== =========== ==========
Diluted shares
outstanding 26,120 26,331 (211) (0.8)%
Lithia Motors, Inc.
Key Performance Metrics
(Unaudited)
Six months ended %
June 30, Increase Increase
----------------------
2013 2012 (Decrease) (Decrease)
---------- ---------- ---------- ----------
Gross margin
New vehicle retail 6.9% 7.5% (60) bps
Used vehicle retail 14.8 14.9 (10) bps
Used vehicle wholesale 2.2 1.0 120 bps
Finance and insurance 100.0 100.0 - bps
Service, body and parts 48.9 48.4 50 bps
Fleet and Other 4.1 3.2 90 bps
Gross profit margin 16.0 16.6 (60) bps
Unit sales
New vehicle retail 31,744 26,112 5,632 21.6%
Used vehicle retail 27,735 22,811 4,924 21.6
Used vehicle wholesale 10,565 8,993 1,572 17.5
Total units sold 70,044 57,916 12,128 20.9
Average selling price
New vehicle retail $ 33,484 $ 32,509 $ 975 3.0%
Used vehicle retail 17,945 17,446 499 2.9
Used vehicle wholesale 7,307 7,613 (306) (4.0)
Average gross profit per
unit
New vehicle retail $ 2,313 $ 2,444 $ (131) (5.4)%
Used vehicle retail 2,663 2,598 65 2.5
Used vehicle wholesale 158 77 81 105.2
Finance and insurance 1,108 1,064 44 4.1
Revenue mix
New vehicle retail 55.6% 54.4%
Used vehicle retail 26.0 25.5
Used vehicle wholesale 4.0 4.4
Finance and insurance, net 3.5 3.3
Service, body and parts 9.7 10.8
Fleet and other 1.2 1.6
Adjusted As reported
---------------------- ----------------------
Six months ended Six months ended
June 30, June 30,
---------------------- ----------------------
Other metrics 2013 2012 2013 2012
---------- ---------- ---------- ----------
SG&A as a % of revenue 10.8% 11.7% 11.0% 11.6%
SG&A as a % of gross profit 67.5 70.5 68.7 70.2
Operating profit as a % of
revenue 4.7 4.4 4.5 4.4
Operating profit as a % of
gross profit 29.4 26.3 28.2 26.5
Pretax margin 4.2 3.7 4.0 3.8
Net profit margin 2.6 2.2 2.5 2.3
Lithia Motors, Inc.
Same Store Operating Highlights (Unaudited)
Six months ended %
June 30, Increase Increase
-----------------------
2013 2012 (Decrease) (Decrease)
----------- ----------- ----------- ----------
Revenues
New vehicle retail $ 1,015,760 $ 844,125 $ 171,635 20.3%
Used vehicle retail 473,753 394,769 78,984 20.0
Used vehicle wholesale 72,045 67,808 4,237 6.2
Finance and insurance 62,560 50,980 11,580 22.7
Service, body and parts 179,192 167,793 11,399 6.8
Fleet and Other 22,688 23,915 (1,227) (5.1)
----------- ----------- -----------
Total revenues $ 1,825,998 $ 1,549,390 $ 276,608 17.9
Gross profit
New vehicle retail $ 69,503 $ 63,351 $ 6,152 9.7%
Used vehicle retail 70,850 58,939 11,911 20.2
Used vehicle wholesale 1,760 744 1,016 136.6
Finance and insurance 62,560 50,980 11,580 22.7
Service, body and parts 85,926 79,503 6,423 8.1
Fleet and Other 675 516 159 30.8
----------- ----------- -----------
Total gross profit $ 291,274 $ 254,033 $ 37,241 14.7
Unit sales
New vehicle retail 30,363 25,970 4,393 16.9%
Used vehicle retail 26,507 22,618 3,889 17.2
Used vehicle wholesale 9,969 8,898 1,071 12.0
Total units sold 66,839 57,486 9,353 16.3
Average selling price
New vehicle retail $ 33,454 $ 32,504 $ 950 2.9%
Used vehicle retail 17,873 17,454 419 2.4
Used vehicle wholesale 7,227 7,621 (394) (5.2)
Average gross profit per
unit
New vehicle retail $ 2,289 $ 2,439 $ (150) (6.2)%
Used vehicle retail 2,673 2,606 67 2.6
Used vehicle wholesale 177 84 93 110.7
Finance and insurance 1,100 1,049 51 4.9
Lithia Motors, Inc.
Other Highlights (Unaudited)
As of
--------------------------------------
June 30, December 31, June 30,
2013 2012 2012
------------ ------------ ------------
Days Supply(1)
New vehicle inventory 76 76 74
Used vehicle inventory 51 56 52
(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 June 30,
Requirement 2013
---------------------------- --------------
Current ratio Not less than 1.20 to 1 1.43 to 1
Fixed charge coverage ratio Not less than 1.20 to 1 3.23 to 1
Leverage ratio Not more than 5.00 to 1 1.83 to 1
Funded debt restriction Not more than $375 million $171.0 million
Lithia Motors, Inc.
Other Highlights (Unaudited)
Three months ended Six months ended
June 30, June 30,
------------------ ------------------
2013 2012 2013 2012
-------- -------- -------- --------
New vehicle unit sales brand mix
Chrysler 29.9% 32.3% 30.5% 32.1%
General Motors 16.2 16.3 16.1 15.5
Toyota 14.6 13.8 14.7 13.4
Subaru 7.6 6.9 7.6 7.2
Honda, Acura 7.2 7.3 7.0 7.0
BMW, MINI 6.4 6.5 6.4 6.7
Ford 6.0 5.1 6.0 5.4
Nissan 2.9 2.6 2.8 2.9
Mercedes 2.7 1.8 2.5 1.9
Hyundai 2.7 3.9 2.8 4.0
Volkswagen, Audi 2.3 1.8 2.1 2.0
Kia 0.5 0.9 0.6 1.0
Mazda 0.5 0.5 0.5 0.6
Other 0.5 0.3 0.4 0.3
Three months ended Six months ended
June 30, June 30,
------------------ ------------------
2013 2012 2013 2012
-------- -------- -------- --------
Revenue geographic mix
Texas 25.0% 25.9% 25.3% 25.5%
Oregon 20.5 19.5 20.7 20.2
California 10.5 10.5 10.6 10.5
Montana 8.8 9.0 8.9 8.8
Alaska 8.2 8.7 7.7 8.8
Washington 8.1 8.1 8.1 7.9
Iowa 5.0 4.9 4.8 4.8
Idaho 5.0 5.3 5.1 5.4
Nevada 4.7 4.5 4.7 4.8
North Dakota 2.6 2.5 2.5 2.3
New Mexico 1.6 1.1 1.6 1.0
As of July 24,
2013
------------------
# of % of
Current store count mix stores total
-------- --------
Chrysler 23 25.2%
General Motors 13 14.3
Honda, Acura 10 11.0
Toyota 9 9.9
BMW, MINI 9 9.9
Hyundai 5 5.5
Ford 5 5.5
Mercedes 4 4.4
Subaru 4 4.4
Nissan 3 3.3
Volkswagen, Audi 3 3.3
Other 3 3.3
Lithia Motors, Inc.
Consolidated Balance Sheets (Unaudited)
(In thousands)
June 30, 2013 December 31, 2012
------------------ -------------------
Cash and cash equivalents $ 20,257 $ 42,839
Trade receivables, net 143,833 133,149
Inventories, net 783,840 723,326
Deferred income taxes 2,824 3,832
Other current assets 9,856 17,484
Assets held for sale 10,733 12,579
------------------ -------------------
Total current assets $ 971,343 $ 933,209
Property and equipment, net 443,516 425,086
Goodwill 40,313 32,047
Franchise value 66,465 62,429
Deferred income taxes 22,190 17,123
Other non-current assets 28,689 22,808
------------------ -------------------
Total assets $ 1,572,516 $ 1,492,702
================== ===================
Floor plan notes payable $ 16,912 $ 13,454
Floor plan notes payable: non trade 570,025 568,130
Current maturities of long-term debt 6,951 8,182
Trade payables 44,121 41,589
Accrued liabilities 90,290 81,602
Liabilities related to assets held
for sale 6,378 8,347
------------------ -------------------
Total current liabilities $ 734,677 $ 721,304
Long-term debt 294,073 286,876
Deferred revenue 38,557 33,589
Other long-term liabilities 29,058 22,832
------------------ -------------------
Total liabilities $ 1,096,365 $ 1,064,601
------------------ -------------------
Class A common stock 265,599 268,801
Class B common stock 319 343
Additional paid-in capital 18,577 12,399
Accumulated other comprehensive loss (1,771) (2,615)
Retained earnings 193,427 149,173
------------------ -------------------
Total liabilities & stockholders'
equity $ 1,572,516 $ 1,492,702
================== ===================
Lithia Motors, Inc.
Summarized Cash Flow from Operations (Unaudited)
(In thousands)
Six months ended
June 30,
----------------------
2013 2012
---------- ----------
Net income $ 47,610 $ 37,287
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Asset impairments - 115
Depreciation and amortization 9,620 8,336
Depreciation and amortization within discontinued
operations - 124
Stock-based compensation 2,603 1,512
Gain on disposal of assets 33 (983)
Deferred income taxes 825 302
Excess tax benefit from share-based payment
arrangements (5,408) (1,026)
(Increase) decrease:
Trade receivables, net (10,684) (18,305)
Inventories (48,899) (109,592)
Other current assets 5,980 4,680
Other non-current assets (3,394) (1,847)
Increase (decrease):
Floor plan notes payable 3,384 (94,305)
Trade payables 2,078 7,289
Accrued liabilities 10,256 7,670
Other long-term liabilities and deferred revenue 10,445 6,700
---------- ----------
Net cash provided by (used in) operating activities $ 24,449 $ (152,043)
========== ==========
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 2013 2012
---------- ----------
As reported $ 24,449 $ (152,043)
Floor plan notes payable, non-trade 5,989 251,844
---------- ----------
Adjusted $ 30,438 $ 99,801
========== ==========
Lithia Motors, Inc.
Reconciliation of Certain Non-GAAP Financial Measures (Unaudited)
(In thousands, except for per share data)
Three months ended June 30, 2013
----------------------------------------------
Legal
As accrual Tax
reported adjustment attribute Adjusted
---------- ---------- ---------- ----------
Selling, general and
administrative $ 109,283 $ (3,813) $ - $ 105,470
Income from operations $ 45,651 $ 3,813 $ - $ 49,464
Income from continuing
operations before income
taxes $ 41,258 $ 3,813 $ - $ 45,071
Income tax expense (15,977) (1,484) (228) (17,689)
---------- ---------- ---------- ----------
Net income from continuing
operations $ 25,281 $ 2,329 $ (228) $ 27,382
========== ========== ========== ==========
Diluted earnings per share
from continuing operations $ 0.97 $ 0.09 $ (0.01) $ 1.05
Diluted share count 26,134
Three months ended June 30, 2012
-------------------------------------
Tax
As reported attribute Adjusted
----------- ----------- -----------
Income from continuing operations
before income taxes $ 32,143 $ - $ 32,143
Income tax expense (12,138) (573) (12,711)
----------- ----------- -----------
Net income from continuing operations $ 20,005 $ (573) $ 19,432
=========== =========== ===========
Diluted earnings per share from
continuing operations $ 0.76 $ (0.02) $ 0.74
Diluted share count 26,185
Lithia Motors, Inc.
Reconciliation of Certain Non-GAAP Financial Measures (Unaudited)
(In thousands, except for per share data)
Six months ended June 30, 2013
----------------------------------------------
Legal
As accrual Tax
reported adjustment attribute Adjusted
---------- ---------- ---------- ----------
Selling, general and
administrative $ 210,414 $ (3,813) $ - $ 206,601
Income from operations $ 86,237 $ 3,813 $ - $ 90,050
Income from continuing
operations before income
taxes $ 76,835 $ 3,813 $ - $ 80,648
Income tax expense (29,672) (1,484) (228) (31,384)
---------- ---------- ---------- ----------
Net income from continuing
operations $ 47,163 $ 2,329 $ (228) $ 49,264
========== ========== ========== ==========
Diluted earnings per share
from continuing operations $ 1.81 $ 0.09 $ (0.01) $ 1.89
Diluted share count 26,120
Six months ended June 30, 2012
------------------------------------------------------------
Asset
impairment
and
disposal Equity Tax
As reported gain investment attribute Adjusted
----------- ----------- ---------- ---------- ----------
Asset
impairments $ 115 $ (115) $ - $ - $ -
Selling,
general and
administrative 181,429 739 - - 182,168
Income from
operations 68,550 (624) - - 67,926
Other income,
net 1,317 - (244) - 1,073
Income from
continuing
operations
before income
taxes $ 58,654 $ (624) $ (244) $ - $ 57,786
Income tax
expense (22,015) 244 95 (1,066) (22,742)
----------- ----------- ---------- ---------- ----------
Net income from
continuing
operations $ 36,639 $ (380) $ (149) $ (1,066) $ 35,044
=========== =========== ========== ========== ==========
Diluted
earnings per
share from
continuing
operations $ 1.39 $ (0.01) $ (0.01) $ (0.04) $ 1.33
Diluted share
count 26,331
Contact:
John North
VP Finance and Controller
(541) 618-5748
