Lithia Motors Reports Record Adjusted EPS of $0.74 for Fourth Quarter and $2.96 for Full Year 2012
MEDFORD, OR -- (Marketwire) -- 02/20/13 -- Lithia Motors, Inc. (NYSE: LAD) today reported the highest fourth quarter adjusted net income in Company history, and increased earnings 52% for the fourth quarter 2012 over the prior year period.
2012 fourth quarter adjusted income from continuing operations was $19.3 million, or $0.74 per diluted share. This compares to a 2011 fourth quarter adjusted income from continuing operations of $12.7 million, or $0.48 per diluted share.
Unadjusted net income from continuing operations for the fourth quarter of 2012 was $19.7 million or $0.76 per diluted share, compared to $16.0 million or $0.61 per diluted share for 2011. As shown in the attached non-GAAP reconciliation tables, the 2012 fourth 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 fourth quarter adjusted results from continuing operations exclude a benefit of $0.15 per share gain on the sale of real estate offset by a non-core reserve adjustment charge of $0.02 per share.
Fourth Quarter-over-Quarter Operating Highlights:
- New vehicle same store sales increased 31%
- Used vehicle retail same store sales increased 20%
- Service, body and parts same store sales increased 8%
- SG&A expense as a percentage of gross profit was 70%
Fourth quarter 2012 revenue from continuing operations increased $182.0 million, or 26%, to $877.4 million from $695.4 million in the fourth quarter of 2011.
Full Year-over-Year Operating Highlights:
- New vehicle same store sales increased 30%
- Used vehicle retail same store sales increased 21%
- Service, body and parts same store sales increased 7%
- Adjusted SG&A expense as a percentage of gross profit was 69%
For the full year of 2012, revenue from continuing operations increased 26% to $3.3 billion from $2.6 billion in 2011.
"We grew total same store revenue 23% in 2012," said Bryan DeBoer, President and CEO. "This is on top of total same store revenue increases of 22% in 2011 and 18% in 2010. Most automotive analysts believe a multi-year recovery in auto sales remains ahead of us, and many of the western markets we do business in are still significantly below peak registration levels experienced in 2005 and 2006. Our store leaders continue to challenge their teams and remain driven to improve store performance in 2013 and beyond."
For the full year of 2012, adjusted net income from continuing operations increased 52% to $2.96 per diluted share compared to $1.95 per diluted share for the full year 2011. Unadjusted, for the full year of 2012, net income from continuing operations was $3.03 per diluted share, compared to $2.07 per diluted share for the full year of 2011.
Chris Holzshu, SVP and CFO, said, "We finished 2012 with full year adjusted SG&A expense as a percentage of gross profit of 69.4%. This is a record result and finishing below 70% is a milestone we have been pursuing for the past two years. For the full year, incremental throughput, or the percentage of additional same store gross profit dollars that we retain after deducting selling costs, was 51%. Our stores remain focused on maintaining incremental throughput above 50%, which will reduce our SG&A expense as a percentage of gross profit in 2013. We believe SG&A expense as a percentage of gross profit can be in the high 60 percent range with improved sales."
Corporate Development
For the full year 2012, we purchased four stores and were granted two new stores, contributing estimated annualized revenues of $260 million.
Bryan DeBoer, President and CEO, stated, "We continue to emphasize acquisitions as one of the long term drivers of growth for Lithia. We remain focused on increasing our store count through acquisitions in 2013, and believe that compelling opportunities currently exist in the marketplace."
Balance Sheet Update
We ended the fourth quarter with $43 million in cash and $120 million in available credit on our credit facilities. Additionally, approximately $102 million of operating real estate is currently unfinanced, which could provide up to an additional $77 million in available liquidity, for total liquidity of $240 million.
During the fourth quarter, we increased the capacity on our syndicated credit facility by $150 million to $800 million in total availability. The facility allocates $575 million to new vehicle floorplan financing, $80 million to used vehicle floorplan financing, and $145 million to our revolving line of credit, and matures in April 2017.
Dividend Payment
As previously announced, we declared and paid a dividend of $0.10 per share in December 2012 for the fourth quarter of 2012. The dividend was in lieu of the dividend typically declared and paid each year in March.
Increased Outlook for 2013
We project 2013 first quarter earnings of $0.69 to $0.71 per diluted share and full-year 2013 earnings of $3.25 to $3.35 per diluted share. Both projections are based on the following annual assumptions:
- Total revenues of $3.7 to $3.8 billion
- New vehicle same store sales increasing 11.5%
- New vehicle gross margin of 7.1% to 7.3%
- Used vehicle same store sales increasing 9.0%
- Used vehicle gross margin of 14.3% to 14.5%
- Service body and parts same store sales increasing 5.0%
- 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 26.5 million
- Capital expenditures of $55 million
- Guidance excludes the impact of future acquisitions, dispositions, and any potential non-core items
Fourth Quarter Earnings Conference Call and Updated Presentation
The fourth quarter conference call may be accessed at 10:00 a.m. ET today by telephone at 877-407-8029. An updated presentation highlighting the fourth 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 February 22, 2013 through March 6, 2013 by calling 877-660-6853 (Conference ID: 401506).
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 87 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.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 "expects," "anticipates," "intends," "plans," "believes," "estimates," "may," "seeks," "would," "should," "likely," or "will" and similar references to future periods. Examples of forward-looking statements in this press release include, among others, (1) statements regarding our belief about whether there will be a multi-year recovery in auto sales and (2) statements regarding our future SG&A expense as a percentage of gross profit.
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 %
December 31, Increase Increase
2012 2011 (Decrease) (Decrease)
----------- ----------- ----------- ----------
Revenues:
New vehicle retail $ 506,871 $ 382,004 $ 124,867 32.7%
Used vehicle retail 208,367 170,053 38,314 22.5
Used vehicle wholesale 35,768 34,862 906 2.6
Finance and insurance 29,244 22,397 6,847 30.6
Service, body and parts 89,665 82,053 7,612 9.3
Fleet and other 7,458 3,979 3,479 87.4
----------- ----------- ----------- ----------
Total revenues 877,373 695,348 182,025 26.2
Cost of sales:
New vehicle retail 471,336 353,207 118,129 33.4
Used vehicle retail 179,186 147,227 31,959 21.7
Used vehicle wholesale 35,010 34,872 138 0.4
Service, body and parts 46,410 43,652 2,758 6.3
Fleet and other 7,071 3,538 3,533 99.9
----------- ----------- ----------- ----------
Total cost of sales 739,013 582,496 156,517 26.9
----------- ----------- ----------- ----------
Gross profit 138,360 112,852 25,508 22.6
Asset Impairments - 504 (504) NM
SG&A expense 97,126 78,331 18,795 24.0
Depreciation and
amortization 4,441 4,095 346 8.4
----------- ----------- ----------- ----------
Income from operations 36,793 29,922 6,871 23.0
Floor plan interest
expense (3,490) (2,706) 784 29.0
Other interest expense (2,239) (3,532) (1,293) (36.6)
Other income, net 754 233 521 223.6
----------- ----------- ----------- ----------
Income from continuing
operations before
income taxes 31,818 23,917 7,901 33.0
Income tax expense (12,154) (7,896) 4,258 53.9
Income tax rate 38.2% 33.0%
----------- ----------- ----------- ----------
Income from continuing
operations $ 19,664 $ 16,021 $ 3,643 22.7%
Income from discontinued
operations, net of tax 169 2,745 (2,576) (93.8)
----------- ----------- ----------- ----------
Net income $ 19,833 $ 18,766 $ 1,067 5.7%
Diluted net income per
share:
Continuing operations $ 0.76 $ 0.61 $ 0.15 24.6%
Discontinued operations - 0.10 (0.10) NM
----------- ----------- ----------- ----------
Net income per share $ 0.76 $ 0.71 $ 0.05 7.0%
=========== =========== =========== ==========
Diluted shares
outstanding 26,068 26,442 (374) (1.4)%
NM - not meaningful
Lithia Motors, Inc.
Key Performance Metrics
(Unaudited)
Three months ended %
December 31, Increase Increase
----------------------
2012 2011 (Decrease) (Decrease)
---------- ---------- ---------- ----------
Gross margin
New vehicle retail 7.0% 7.5% (50) bps
Used vehicle retail 14.0 13.4 60 bps
Used vehicle wholesale 2.1 0.0 210 bps
Finance and insurance 100.0 100.0 - bps
Service, body and parts 48.2 46.8 140 bps
Fleet and Other 5.2 11.1 (590) bps
Gross profit margin 15.8 16.2 (40) bps
Unit sales
New vehicle retail 14,713 11,161 3,552 31.8%
Used vehicle retail 11,943 9,810 2,133 21.7
Used vehicle wholesale 5,009 4,270 739 17.3
Total units sold 31,665 25,241 6,424 25.5
Average selling price
New vehicle retail $ 34,451 $ 34,227 $ 224 0.7%
Used vehicle retail 17,447 17,335 112 0.6
Used vehicle wholesale 7,141 8,164 (1,023) (12.5)
Average gross profit per
unit
New vehicle retail $ 2,415 $ 2,580 $ (165) (6.4)%
Used vehicle retail 2,443 2,327 116 5.0
Used vehicle wholesale 151 (2) 153 NM
Finance and insurance 1,097 1,068 29 2.7
Revenue mix
New vehicle retail 57.8% 54.9%
Used vehicle retail 23.7 24.5
Used vehicle wholesale 4.1 5.0
Finance and insurance, net 3.3 3.2
Service, body and parts 10.2 11.8
Fleet and other 0.9 0.6
Adjusted As reported
------------------ ------------------
Three months ended Three months ended
December 31, December 31,
------------------ ------------------
Other metrics 2012 2011 2012 2011
-------- -------- -------- --------
SG&A as a % of revenue 11.1% 12.2% 11.1% 11.3%
SG&A as a % of gross profit 70.2 74.4 70.2 69.4
Operating profit as a % of revenue 4.2 3.6 4.2 4.3
Operating profit as a % of gross
profit 26.6 22.0 26.6 26.5
Pretax margin 3.6 2.7 3.6 3.4
Net profit margin 2.2 1.8 2.2 2.3
NM - not meaningful
Lithia Motors, Inc.
Same Store Operating Highlights
(Unaudited)
Three months ended %
December 31, Increase Increase
---------------------
2012 2011 (Decrease) (Decrease)
---------- ---------- ---------- ----------
Revenues
New vehicle retail $ 489,968 $ 374,573 $ 115,395 30.8%
Used vehicle retail 200,409 166,889 33,520 20.1
Used vehicle wholesale 33,191 32,653 538 1.6
Finance and insurance 28,360 21,703 6,657 30.7
Service, body and parts 87,088 80,557 6,531 8.1
Fleet and other 7,260 3,544 3,716 104.9
---------- ---------- ----------
Total revenues $ 846,276 $ 679,919 $ 166,357 24.5
Gross profit
New vehicle retail $ 34,107 $ 28,178 $ 5,929 21.0%
Used vehicle retail 28,300 22,440 5,860 26.1
Used vehicle wholesale 685 38 647 NM
Finance and insurance 28,360 21,703 6,657 30.7
Service, body and parts 41,255 37,777 3,478 9.2
Fleet and other 240 (120) 360 NM
---------- ---------- ----------
Total gross profit $ 132,947 $ 110,016 $ 22,931 20.8
Unit sales
New vehicle retail 14,216 10,933 3,283 30.0%
Used vehicle retail 11,482 9,613 1,869 19.4
Used vehicle wholesale 4,744 4,076 668 16.4
Total units sold 30,442 24,622 5,820 23.6
Average selling price
New vehicle retail $ 34,466 $ 34,261 $ 205 0.6%
Used vehicle retail 17,454 17,361 93 0.5
Used vehicle wholesale 6,996 8,011 (1,015) (12.7)
Average gross profit per
unit
New vehicle retail $ 2,399 $ 2,577 $ (178) (6.9)%
Used vehicle retail 2,465 2,334 131 5.6
Used vehicle wholesale 144 9 135 NM
Finance and insurance 1,104 1,056 48 4.5
NM - not meaningful
Lithia Motors, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands except per share data)
Twelve months ended %
December 31, Increase Increase
----------------------
2012 2011 (Decrease) (Decrease)
---------- ---------- ---------- ----------
Revenues:
New vehicle retail $1,847,603 $1,391,375 $ 456,228 32.8%
Used vehicle retail 833,484 678,571 154,913 22.8
Used vehicle wholesale 139,237 128,329 10,908 8.5
Finance and insurance 112,234 84,130 28,104 33.4
Service, body and parts 347,703 315,958 31,745 10.0
Fleet and other 36,226 34,383 1,843 5.4
---------- ---------- ---------- ----------
Total revenues 3,316,487 2,632,746 683,741 26.0
Cost of sales:
New vehicle retail 1,713,156 1,284,225 428,931 33.4
Used vehicle retail 711,763 580,357 131,406 22.6
Used vehicle wholesale 137,823 127,732 10,091 7.9
Service, body and parts 179,633 163,738 15,895 9.7
Fleet and other 34,812 31,410 3,402 10.8
---------- ---------- ---------- ----------
Total cost of sales 2,777,187 2,187,462 589,725 27.0
---------- ---------- ---------- ----------
Gross profit 539,300 445,284 94,016 21.1
Asset impairments 115 1,376 (1,261) (91.6)
SG&A expense 373,688 316,663 57,025 18.0
Depreciation and
amortization 17,128 16,427 701 4.3
---------- ---------- ---------- ----------
Income from operations 148,369 110,818 37,551 33.9
Floor plan interest expense (12,816) (10,364) 2,452 23.7
Other interest expense (9,621) (12,878) (3,257) (25.3)
Other income, net 2,525 694 1,831 263.8
---------- ---------- ---------- ----------
Income from continuing
operations before income
taxes 128,457 88,270 40,187 45.5
Income tax expense (49,062) (33,060) 16,002 48.4
Income tax rate 38.2% 37.5%
---------- ---------- ---------- ----------
Income from continuing
operations $ 79,395 $ 55,210 $ 24,185 43.8%
Income from discontinued
operations, net of tax 967 3,650 (2,683) (73.5)
---------- ---------- ---------- ----------
Net income $ 80,362 $ 58,860 $ 21,502 36.5%
Diluted net income per
share:
Continuing operations $ 3.03 $ 2.07 $ 0.96 46.4%
Discontinued operations 0.04 0.14 (0.10) (71.4)
---------- ---------- ---------- ----------
Net income per share $ 3.07 $ 2.21 $ 0.86 38.9%
========== ========== ========== ==========
Diluted shares outstanding 26,170 26,664 (494) (1.9)%
Lithia Motors, Inc.
Key Performance Metrics
(Unaudited)
Twelve months ended %
December 31, Increase Increase
----------------------
2012 2011 (Decrease) (Decrease)
---------- ---------- ---------- ----------
Gross margin
New vehicle retail 7.3% 7.7% (40) bps
Used vehicle retail 14.6 14.5 10 bps
Used vehicle wholesale 1.0 0.5 50 bps
Finance and insurance 100.0 100.0 - bps
Service, body and parts 48.3 48.2 10 bps
Fleet and Other 3.9 8.6 (470) bps
Gross profit margin 16.3 16.9 (60) bps
Unit sales
New vehicle retail 55,666 42,139 13,527 32.1%
Used vehicle retail 47,965 39,436 8,529 21.6
Used vehicle wholesale 19,144 16,085 3,059 19.0
Total units sold 122,775 97,660 25,115 25.7
Average selling price
New vehicle retail $ 33,191 $ 33,019 $ 172 0.5%
Used vehicle retail 17,377 17,207 170 1.0
Used vehicle wholesale 7,273 7,978 (705) (8.8)
Average gross profit per
unit
New vehicle retail $ 2,415 $ 2,543 $ (128) (5.0)%
Used vehicle retail 2,538 2,490 48 1.9
Used vehicle wholesale 74 37 37 100.0
Finance and insurance 1,083 1,031 52 5.0
Revenue mix
New vehicle retail 55.7% 52.8%
Used vehicle retail 25.1 25.8
Used vehicle wholesale 4.2 4.9
Finance and insurance, net 3.4 3.2
Service, body and parts 10.5 12.0
Fleet and other 1.1 1.3
Adjusted As reported
---------------------- ----------------------
Twelve months ended Twelve months ended
December 31, December 31,
Other metrics 2012 2011 2012 2011
---------- ---------- ---------- ----------
SG&A as a % of revenue 11.3% 12.3% 11.3% 12.0%
SG&A as a % of gross profit 69.4 72.5 69.3 71.1
Operating profit as a % of
revenue 4.5 4.0 4.5 4.2
Operating profit as a % of
gross profit 27.4 23.8 27.5 24.9
Pretax margin 3.8 3.2 3.9 3.4
Net profit margin 2.3 2.0 2.4 2.1
Lithia Motors, Inc.
Same Store Operating Highlights
(Unaudited)
Twelve months ended %
December 31, Increase Increase
---------------------
2012 2011 (Decrease) (Decrease)
---------- ---------- ---------- ----------
Revenues
New vehicle retail $1,776,896 $1,367,176 $ 409,720 30.0%
Used vehicle retail 802,169 664,292 137,877 20.8
Used vehicle wholesale 132,722 123,046 9,676 7.9
Finance and insurance 107,376 81,055 26,321 32.5
Service, body and parts 329,803 309,805 19,998 6.5
Fleet and Other 30,928 33,426 (2,498) (7.5)
---------- ---------- ----------
Total revenues $3,179,894 $2,578,800 $ 601,094 23.3
Gross profit
New vehicle retail $ 128,894 $ 104,960 $ 23,934 22.8%
Used vehicle retail 117,817 96,126 21,691 22.6
Used vehicle wholesale 1,320 635 685 107.9
Finance and insurance 107,376 81,055 26,321 32.5
Service, body and parts 155,813 146,827 8,986 6.1
Fleet and Other 739 1,018 (279) (27.4)
---------- ---------- ----------
Total gross profit $ 511,959 $ 430,621 $ 81,338 18.9
Unit sales
New vehicle retail 53,590 41,391 12,199 29.5%
Used vehicle retail 46,179 38,628 7,551 19.5
Used vehicle wholesale 18,383 15,613 2,770 17.7
Total units sold 118,152 95,632 22,520 23.5
Average selling price
New vehicle retail $ 33,157 $ 33,031 $ 126 0.4%
Used vehicle retail 17,371 17,197 174 1.0
Used vehicle wholesale 7,220 7,881 (661) (8.4)
Average gross profit per unit
New vehicle retail $ 2,405 $ 2,536 $ (131) (5.2)%
Used vehicle retail 2,551 2,489 62 2.5
Used vehicle wholesale 72 41 31 75.6
Finance and insurance 1,076 1,013 63 6.2
Lithia Motors, Inc.
Other Highlights
(Unaudited)
As of December 31,
---------------------
2012 2011 Increase
---------- ---------- ----------
Days Supply(1)
New vehicle inventory 76 62 14 days
Used vehicle inventory 56 52 4 days
(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 December
Requirement 31, 2012
-------------------------- ---------------
Current ratio Not less than 1.20 to 1 1.43 to 1
Fixed charge coverage ratio Not less than 1.20 to 1 2.35 to 1
Leverage ratio Not more than 5.00 to 1 2.08 to 1
Funded debt restriction Not more than $375 million $ 195.7 million
Lithia Motors, Inc.
Other Highlights
(Unaudited)
Three months ended Twelve months ended
December 31, December 31,
-------------------- --------------------
2012 2011 2012 2011
--------- --------- --------- ---------
New vehicle unit sales brand mix
Chrysler 32.0% 31.4% 32.2% 31.4%
General Motors 14.7 15.9 15.2 16.7
Toyota 13.8 12.0 13.7 12.3
Subaru 7.8 6.1 7.3 5.5
BMW, MINI 7.5 8.2 6.8 7.0
Honda, Acura 6.7 6.1 6.9 6.9
Ford 6.2 6.5 5.5 6.2
Hyundai 2.7 3.9 3.6 4.4
Mercedes 2.7 2.7 2.2 1.7
Nissan 2.5 3.1 2.8 3.6
Volkswagen, Audi 1.7 2.5 2.0 2.4
Kia 0.6 1.0 0.9 1.2
Mazda 0.5 0.3 0.5 0.5
Other 0.6 0.3 0.4 0.2
Three months ended Twelve months ended
December 31, December 31,
-------------------- --------------------
2012 2011 2012 2011
--------- --------- --------- ---------
Revenue geographic mix
Texas 24.3% 25.0% 25.0% 25.2%
Oregon 20.1 20.1 19.9 18.4
California 10.5 10.3 10.4 10.4
Washington 8.8 8.4 8.3 8.4
Montana 8.7 8.2 8.8 8.6
Alaska 7.8 8.5 8.5 9.5
Iowa 5.2 5.4 5.1 5.4
Idaho 5.0 5.8 5.3 6.1
Nevada 4.8 4.8 4.7 4.6
North Dakota 2.9 2.4 2.5 2.3
New Mexico 1.9 1.1 1.5 1.1
As of February 20,
2013
--------------------
# of % of
Current store count mix stores total
---------- ---------
Chrysler 23 26.4%
General Motors 14 16.1
Honda, Acura 9 10.3
Toyota 8 9.2
BMW, MINI 7 8.0
Hyundai 6 6.9
Ford 5 5.7
Nissan 3 3.5
Mercedes 3 3.5
Subaru 3 3.5
Other 3 3.5
Kia 2 2.3
Volkswagen, Audi 1 1.1
Lithia Motors, Inc.
Consolidated Balance Sheets
(Unaudited)
(In thousands)
December 31, December 31,
2012 2011
------------ ------------
Cash and cash equivalents $ 42,839 $ 20,851
Trade receivables, net 133,149 99,407
Inventories, net 723,326 506,484
Deferred income taxes 3,832 4,730
Other current assets 17,484 16,719
Assets held for sale 12,579 -
------------ ------------
Total current assets $ 933,209 $ 648,191
Property and equipment, net 425,086 373,779
Goodwill 32,047 18,958
Franchise value 62,429 59,095
Deferred income taxes 17,123 29,270
Other non-current assets 22,808 16,840
------------ ------------
Total assets $ 1,492,702 1,146,133
============ ============
Floor plan notes payable $ 13,454 $ 114,760
Floor plan notes payable: non trade 568,130 229,180
Current maturities of long-term debt 8,182 8,221
Trade payables 41,589 31,712
Accrued liabilities 81,602 72,711
Liabilities related to assets held for sale 8,347 -
------------ ------------
Total current liabilities $ 721,304 456,584
Long-term debt 286,876 278,653
Deferred revenue 33,589 25,146
Other long-term liabilities 22,832 18,629
------------ ------------
Total liabilities $ 1,064,601 $ 779,012
------------ ------------
Class A common stock 268,801 279,366
Class B common stock 343 468
Additional paid-in capital 12,399 10,918
Accumulated other comprehensive loss (2,615) (4,508)
Retained earnings 149,173 80,877
------------ ------------
Total liabilities & stockholders' equity $ 1,492,702 $ 1,146,133
============ ============
Lithia Motors, Inc.
Summarized Cash Flow from Operations
(Unaudited)
(In thousands)
Twelve months ended
December 31,
----------------------
2012 2011
---------- ----------
Net income $ 80,362 $ 58,860
Adjustments to reconcile net income to net cash used
in operating activities:
Asset impairments 115 1,376
Depreciation and amortization 17,128 16,427
Depreciation and amortization within discontinued
operations 186 521
Stock-based compensation 3,116 2,001
Gain on disposal of assets (747) (6,495)
(Gain) loss from disposal activities within
discontinued operations 621 (4,396)
Deferred income taxes 14,172 8,093
Excess tax benefit from share-based payment
arrangements (2,802) (525)
(Increase) decrease:
Trade receivables, net (33,704) (22,503)
Inventories (230,442) (78,202)
Other current assets (4,194) (13,111)
Other non-current assets (6,176) (1,108)
Increase (decrease):
Floor plan notes payable (82,109) 13,510
Trade payables 8,001 5,998
Accrued liabilities 10,538 11,605
Other long-term liabilities and deferred revenue 13,459 7,183
---------- ----------
Net cash used in operating activities $ (212,476) $ (766)
========== ==========
Lithia Motors, Inc.
Reconciliation of Non-GAAP Cash Flow from Operations
(Unaudited)
(In thousands)
Twelve months ended
December 31,
----------------------
Net cash provided by (used in) operating activities 2012 2011
---------- ----------
As reported $ (212,476) $ (766)
Floor plan notes payable, non-trade 348,477 63,145
---------- ----------
Adjusted $ 136,001 $ 62,379
========== ==========
Lithia Motors, Inc.
Reconciliation of Certain Non-GAAP Financial Measures
(Unaudited)
(In thousands, except for per share data)
Three months ended December 31,
2012
----------------------------------
As Tax
reported attribute Adjusted
---------- ---------- ----------
Income from continuing operations before
income taxes $ 31,818 $ - $ 31,818
Income tax expense (12,154) (374) (12,528)
---------- ---------- ----------
Net income from continuing operations $ 19,664 $ (374) $ 19,290
========== ========== ==========
Diluted earnings per share from
continuing operations $ 0.76 $ (0.02) $ 0.74
Diluted share count 26,068
Three months ended December 31, 2011
-------------------------------------------
Asset
impairment
and
As disposal Reserve
reported gain adjustments Adjusted
-------- ---------- ----------- --------
Cost of sales - service, body
and parts $ 43,652 $ - $ (950) $ 42,702
Gross profit 112,852 - 950 113,802
Asset impairments 504 (504) - -
Selling, general and
administrative 78,331 6,301 - 84,632
Income from operations 29,922 (5,797) 950 25,075
Income from continuing
operations before income taxes $ 23,917 $ (5,797) $ 950 $ 19,070
Income tax expense (7,896) 1,842 (360) (6,414)
-------- ---------- ----------- --------
Net income from continuing
operations $ 16,021 $ (3,955) $ 590 $ 12,656
======== ========== =========== ========
Diluted earnings per share from
continuing operations $ 0.61 $ (0.15) $ 0.02 $ 0.48
Diluted share count 26,442
Lithia Motors, Inc.
Reconciliation of Certain Non-GAAP Financial Measures
(Unaudited)
(In thousands, except for per share data)
Twelve months ended December 31, 2012
------------------------------------------------------
Asset
impairment
and
As disposal Equity Tax
reported gain investment attribute Adjusted
-------- ---------- ---------- --------- ---------
Asset impairments $ 115 $ (115) $ - $ - $ -
Selling, general and
administrative 373,688 739 - - 374,427
Income from
operations 148,369 (624) - - 147,745
Other income, net 2,525 - (244) - 2,281
Income from
continuing
operations before
income taxes $128,457 $ (624) $ (244) $ - $ 127,589
Income tax expense (49,062) 249 97 (1,447) (50,163)
-------- ---------- ---------- --------- ---------
Net income from
continuing
operations $ 79,395 $ (375) $ (147) $ (1,447) $ 77,426
======== ========== ========== ========= =========
Diluted earnings per
share from
continuing
operations $ 3.03 $ (0.01) $ (0.01) $ (0.05) $ 2.96
Diluted share count 26,170
Twelve months ended December 31, 2011
---------------------------------------------
Asset
impairment
and
As disposal Reserve
reported gain adjustments Adjusted
--------- ---------- ----------- ---------
Cost of sales - service, body
and parts $ 163,738 $ - $ (950) $ 162,788
Gross profit 445,284 - 950 446,234
Asset impairments 1,376 (1,376) - -
Selling, general and
administrative 316,663 6,881 - 323,544
Income from operations 110,818 (5,505) 950 106,263
Income from continuing
operations before income
taxes $ 88,270 $ (5,505) $ 950 $ 83,715
Income tax expense (33,060) 1,724 (360) (31,696)
--------- ---------- ----------- ---------
Net income from continuing
operations $ 55,210 $ (3,781) $ 590 $ 52,019
========= ========== =========== =========
Diluted earnings per share
from continuing operations $ 2.07 $ (0.14) $ 0.02 $ 1.95
Diluted share count 26,664
Contact:
John North
VP Finance and Controller
(541) 618-5748
