Lithia Motors Reports Third Quarter 2010 Earnings of $0.37 per Share, Introduces 2011 Guidance in Range of $1.03-1.11 per Share
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MEDFORD, OR, Oct 27, 2010 (MARKETWIRE via COMTEX) -- Lithia Motors, Inc. (NYSE: LAD) today reported 2010 third quarter net income from continuing operations of $0.37 per diluted share. This compares to a 2009 adjusted third quarter net income from continuing operations of $0.40 per diluted share. The results include 23% more shares outstanding in 2010 compared to 2009 primarily due to the equity offering at the end of 2009. Third quarter 2010 revenue from continuing operations increased 15% to $582.7 million, compared to $508.0 million in the year-ago period, mainly driven by improved vehicle sales.
Third Quarter Operating Highlights: -- Total same store sales increased 12%, including increases of 8% in new
vehicle sales and 2.5% in service, body and parts sales
-- Same store used vehicle retail sales increased 20% and the used retail
to new vehicle unit sales ratio was 1.05 : 1
-- Selling, general & administrative costs as a percent of gross
profit was 74%, an improvement of 70 basis points over the prior year
-- Repurchased approximately 100,000 shares in the quarter
-- Unfinanced new vehicle inventory totaled $65.2 million at the end of
the quarter, an increase of $33.6 million from June 30, 2010
Sid DeBoer, Lithia's Chairman and CEO, commented, "Our continued focus on operations and improving our performance in all business lines is evident in our third quarter results. Despite a difficult comparison due to the Cash for Clunkers program last year, we grew same store sales in all categories. Lithia's store leaders are responding to our customers' needs and local competition quickly and decisively. Our information systems and centralized administrative processes allow our team more time to do what they do best -- service our customers." As shown in the attached reconciliation table, the 2009 third quarter adjusted results from continuing operations exclude non-core charges of $(0.07) per share on asset impairments. Unadjusted, net income from continuing operations for the third quarter of 2009 was $7.0 million, or $0.33 per diluted share. For the nine-month period ended September 30, 2010, total revenues increased 16% to $1.6 billion as compared to $1.4 billion in the same period last year. Same store new vehicle sales increased 15%, retail used vehicle sales increased 19% and service, body and parts sales decreased 1%. For the first nine months, Lithia's adjusted income from continuing operations, net of tax, and excluding non-core charges and gains was $0.74 per share as compared to $0.62 per share in 2009. Unadjusted, net income from continuing operations for the first nine months was $0.37 per diluted share, compared to net income from continuing operations of $0.42 per diluted share for the same period last year. Balance Sheet Update Lithia ended the period with $110.9 million in immediately available funds, including $15.3 million in cash, $30.4 million in availability on its revolving credit facility, and $65.2 million in unfinanced new vehicle inventory. Dividend Payment Lithia announced that the Board of Directors has approved a dividend of $0.05 per share for the third quarter 2010. Lithia will pay the dividend November 26th to shareholders of record on November 12th, 2010. Outlook for 2010 and 2011 Lithia is increasing 2010 fourth quarter earnings guidance to a range of $0.11 to $0.13 per diluted share, for full-year 2010 earnings in a range of $0.84 to $0.86 per diluted share. Both projections are based on the following annual assumptions: -- Total revenues in range of $1.95 to $2.0 billion
-- New vehicle same store sales increasing 15.7%
-- New vehicle gross margin ranging from 8.1% to 8.3%
-- Used vehicle same store sales increasing 16.6%
-- Used vehicle gross margin ranging from 14.2% to 14.5%
-- Service body and parts same store sales decreasing 0.6%
-- Service body and parts gross margin ranging from 48.4% to 48.7%
-- Finance and insurance gross profit of $955 per unit
-- Tax rate of 40%
-- Estimated average diluted shares outstanding of 26.3 million
-- Capital expenditures of approximately $9.3 million
-- Chrysler market share consistent with full year 2009 levels
-- Guidance excludes the impact of future acquisitions, dispositions, and
any potential non-core items
Lithia projects its 2011 first quarter earnings guidance within a range of $0.15 to $0.17 per diluted share. Full-year 2011 earnings guidance is projected within a range of $1.03 to $1.11 per diluted share. Both projections are based on the following annual assumptions: -- Total revenues in range of $2.2 to $2.35 billion
-- New vehicle same store sales increasing 10.0%
-- New vehicle gross margin ranging from 8.0% to 8.2%
-- Used vehicle same store sales increasing 8.8%
-- Used vehicle gross margin ranging from 14.0% to 14.3%
-- Service body and parts same store sales increasing 1.9%
-- Service body and parts gross margin ranging from 48.6% to 48.9%
-- Finance and insurance gross profit of $970 per unit
-- Tax rate of 40%
-- Estimated average diluted shares outstanding of 26.9 million
-- Capital expenditures of approximately $10.6 million
-- Guidance excludes the impact of future acquisitions, dispositions, and
any potential non-core items
Third Quarter Earnings Conference Call and Updated Presentation The third quarter conference call may be accessed at 2:00 p.m. PT today by telephone at (877) 407-8029 (Conference ID: 358497). An updated presentation highlighting the third 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 the conference call icon. A playback of the conference call will be available after 5:00 p.m. PT on October 27, 2010 through November 3, 2010 by calling 877-660-6853 (Conference ID: 358497 Account: 305). About Lithia Lithia Motors, Inc. is the ninth largest automotive retailer in the United States and a Fortune 800 company. Lithia sells 26 brands of new and all brands of used vehicles at 85 stores, which are located in 12 states. 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. For additional information on Lithia Motors, contact the Investor Relations Department at (541) 618-5748 or visit www.lithia.com and click on "Investor Relations." Sites Lithia Motors on Facebook http://www.facebook.com/LithiaMotors Lithia Life on Facebook http://www.facebook.com/pages/Lithia-Lifecom/34360183908?ref=ts Lithia Life on YouTube http://www.youtube.com/user/LithiaLife Lithia Life on Twitter http://twitter.com/LithiaLife 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 fourth quarter and full year 2010 results and first quarter and full year 2011 results, our ability to utilize our information systems and the leverage produced by our centralized administrative operations. 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. 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 adjusted to exclude certain items disclosed in the attached financial tables. Cash flows from operations were adjusted to include the change in non-trade floorplan 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 Statement of Operations (Unaudited)
(In thousands except per share data)
Three Months Ended
September 30, %
-------------------- Increase Increase
2010 2009 (Decrease) (Decrease)
--------- --------- ---------- ----------
Revenues:
New vehicle sales $ 293,237 $ 266,769 $ 26,468 9.9%
Used vehicle sales 189,667 150,080 39,587 26.4
Finance and insurance 18,928 15,704 3,224 20.5
Service, body and parts 77,733 74,538 3,195 4.3
Fleet and other 3,122 895 2,227 248.8
--------- --------- ---------- ----------
Total revenues 582,687 507,986 74,701 14.7
Cost of sales:
New vehicle sales 269,018 242,963 26,055 10.7
Used vehicle sales 166,368 130,322 36,046 27.7
Service, body and parts 39,673 38,611 1,062 2.8
Fleet and other 2,684 597 2,087 349.6
--------- --------- ---------- ----------
Total cost of sales 477,743 412,493 65,250 15.8
--------- --------- ---------- ----------
Gross profit 104,944 95,493 9,451 9.9
Asset impairment charges - 1,967 (1,967) (100.0)
SG&A expense 77,468 71,557 5,911 8.3
Depreciation and amortization 4,238 3,883 355 9.1
--------- --------- ---------- ----------
Income from operations 23,238 18,086 5,152 28.5
Floorplan interest expense (3,085) (3,053) 32 1.0
Other interest expense (3,725) (3,291) 434 13.2
Other income, net 73 25 48 192.0
--------- --------- ---------- ----------
Income from continuing
operations before income
taxes 16,501 11,767 4,734 40.2
Income tax expense 6,709 4,792 1,917 40.0
Income tax rate 40.7% 40.7%
--------- --------- ---------- ----------
Income from continuing
operations $ 9,792 $ 6,975 $ 2,817 40.4%
Loss from discontinued
operations, net of income
tax - (1,262) 1,262 100.0
--------- --------- ---------- ----------
Net income $ 9,792 $ 5,713 $ 4,079 71.4%
========= ========= ========== ==========
Diluted net income (loss) per
share:
Continuing operations $ 0.37 $ 0.33 $ 0.04 12.1%
Discontinued operations - (0.06) 0.06 100.0
--------- --------- ---------- ----------
Net income per share $ 0.37 $ 0.27 $ 0.10 37.0%
========= ========= ========== ==========
Diluted shares outstanding 26,328 21,448 4,880 22.8%
Lithia Motors, Inc.
Key Performance Metrics (Unaudited)
Three Months Ended
September 30, %
------------------ Increase Increase
2010 2009 (Decrease) (Decrease)
-------- -------- ----------- -----------
Gross margin
New vehicle retail 8.3% 8.9% (60) bps
Used vehicle retail 14.7 15.2 (50) bps
Used vehicle wholesale 0.1 0.1 - bps
Finance & insurance 100.0 100.0 - bps
Service, body & parts 49.0 48.2 80 bps
Gross profit margin 18.0 18.8 (80) bps
Unit sales
New vehicle retail 9,232 9,278 (46) (0.5)%
Used vehicle retail 9,705 8,000 1,705 21.3
Used vehicle wholesale 4,066 4,178 (112) (2.7)
Total units sold 23,003 21,456 1,547 7.2
Average selling price
New vehicle retail $ 31,763 $ 28,753 $ 3,010 10.5 %
Used vehicle retail 16,362 16,232 130 0.8
Used vehicle wholesale 7,592 4,840 2,752 56.9
Average gross profit per unit
New vehicle retail $ 2,623 $ 2,566 $ 57 2.2 %
Used vehicle retail 2,397 2,468 (71) (2.9)
Used vehicle wholesale 8 4 4 100.0
Finance & insurance 1,000 909 91 10.0
Revenue mix
New vehicle retail 50.3% 52.5%
Used vehicle retail 27.3 25.6
Used vehicle wholesale 5.4 3.9
Finance & insurance, net 3.2 3.1
Service, body & parts 13.3 14.7
Fleet and other 0.5 0.2
Adjusted As reported
------------------ ------------------
Three Months Ended Three Months Ended
September 30, September 30,
------------------ ------------------
Other metrics 2010 2009 2010 2009
------- ------- ------- -------
SG&A as a % of revenue 13.3% 14.0% 13.3% 14.1 %
SG&A as a % of gross profit 73.8 74.5 73.8 74.9
Operating profit as a % of
revenue 4.0 4.0 4.0 3.6
Operating profit as a % of
gross profit 22.1 21.4 22.1 18.9
Pretax margin 2.8 2.8 2.8 2.3
Lithia Motors, Inc.
Key Performance Metrics (Unaudited)
Three Months Ended
September 30,
-------------------------
2010 2009
----------- -----------
New vehicle unit sales brand mix
Chrysler 29.0 % 28.5 %
General Motors 15.7 15.4
Toyota 13.0 15.5
Honda 8.2 8.5
Ford 6.1 4.6
Hyundai 5.9 6.6
Subaru 5.7 6.0
BMW 5.1 4.3
Volkswagen, Audi 4.0 3.2
Nissan 3.4 4.5
Kia 2.0 1.0
Mercedes 1.3 1.0
Other 0.6 0.9
Same store revenue changes
New vehicle retail 8.0 % (13.5)%
Used vehicle retail 19.8 3.1
Used vehicle wholesale 51.8 (17.7)
Finance & insurance 18.8 (23.7)
Service, body & parts 2.5 (2.2)
Total sales (excluding fleet) 12.2 (8.7)
Same store gross profit changes
New vehicle retail (0.3)% 1.8 %
Used vehicle retail 16.5 51.3
Used vehicle wholesale 113.8 (102.9)
Service, body & parts 3.9 (2.6)
Total gross profit (excluding fleet) 7.6 3.0
Current store count # of stores % of total
----------- -----------
Chrysler 23 27.1 %
General Motors 12 14.1
Honda 8 9.4
Toyota 8 9.4
Hyundai 6 7.0
BMW 6 7.0
Ford 4 4.7
Volkswagen, Audi 4 4.7
Nissan 4 4.7
Subaru 2 2.4
Kia 2 2.4
Mercedes 1 1.2
Other 5 5.9
-----------
85
Lithia Motors, Inc.
Consolidated Statement of Operations (Unaudited)
(In thousands except per share data)
Nine Months Ended
September 30, %
-------------------- Increase Increase
2010 2009 (Decrease) (Decrease)
--------- --------- ----------- ----------
Revenues:
New vehicle sales $ 777,575 $ 670,835 $ 106,740 15.9 %
Used vehicle sales 521,437 419,689 101,748 24.2
Finance and insurance 49,840 44,098 5,742 13.0
Service, body and parts 218,526 219,807 (1,281) (0.6)
Fleet and other 8,629 2,090 6,539 312.9
--------- --------- ----------- ----------
Total revenues 1,576,007 1,356,519 219,488 16.2
Cost of sales:
New vehicle sales 712,857 612,942 99,915 16.3
Used vehicle sales 457,625 367,536 90,089 24.5
Service, body and parts 111,541 113,900 (2,359) (2.1)
Fleet and other 7,392 1,078 6,314 585.7
--------- --------- ----------- ----------
Total cost of sales 1,289,415 1,095,456 193,959 17.7
--------- --------- ----------- ----------
Gross profit 286,592 261,063 25,529 9.8
Asset impairment charges 14,751 7,164 7,587 105.9
SG&A expense 223,320 209,469 13,851 6.6
Depreciation and
amortization 13,389 11,943 1,446 12.1
--------- --------- ----------- ----------
Income from operations 35,132 32,487 2,645 8.1
Floorplan interest expense (8,403) (8,628) (225) (2.6)
Other interest expense (10,842) (10,639) 203 1.9
Other income, net 356 1,447 (1,091) (75.4)
--------- --------- ----------- ----------
Income from continuing
operations before income
taxes 16,243 14,667 1,576 (10.7)
Income tax expense 6,522 5,937 585 9.9
Income tax rate 40.2% 40.5%
--------- --------- ----------- ----------
Income from continuing
operations $ 9,721 $ 8,730 $ 991 11.4 %
Income (loss) from
discontinued operations,
net of income tax (381) 1,975 (2,356) NM
--------- --------- ----------- ----------
Net income $ 9,340 $ 10,705 $ (1,365) (12.8)%
========= ========= =========== ==========
Diluted net income (loss)
per share:
Continuing operations $ 0.37 $ 0.41 $ (0.04) (9.8)%
Discontinued operations (0.01) 0.10 (0.11) NM
--------- --------- ----------- ----------
Net income per share $ 0.36 $ 0.51 $ (0.15) (29.4)%
========= ========= =========== ==========
Diluted shares outstanding 26,191 21,124 5,067 24.0 %
NM - not meaningful
Lithia Motors, Inc.
Key Performance Metrics (Unaudited)
Nine Months Ended
September 30, %
-------------------- Increase Increase
2010 2009 (Decrease) (Decrease)
--------- --------- ---------- ----------
Gross margin
New vehicle retail 8.3% 8.6% (30) bps
Used vehicle retail 14.3 14.2 10 bps
Used vehicle wholesale 0.9 0.8 10 bps
Finance & insurance 100.0 100.0 - bps
Service, body & parts 49.0 48.2 80 bps
Gross profit margin 18.2 19.2 (100) bps
Unit sales
New vehicle retail 24,794 22,779 2,015 8.8%
Used vehicle retail 26,583 22,879 3,704 16.2
Used vehicle wholesale 10,657 10,457 200 1.9
Total units sold 62,034 56,115 5,919 10.5
Average selling price
New vehicle retail $ 31,361 $ 29,450 $ 1,911 6.5%
Used vehicle retail 16,610 15,962 648 4.1
Used vehicle wholesale 7,498 5,211 2,287 43.9
Average gross profit per unit
New vehicle retail $ 2,610 $ 2,541 $ 69 2.7%
Used vehicle retail 2,374 2,261 113 5.0
Used vehicle wholesale 66 40 26 65.0
Finance & insurance 970 966 4 0.4
Revenue mix
New vehicle retail 49.3% 49.5%
Used vehicle retail 28.0 26.9
Used vehicle wholesale 5.1 3.9
Finance & insurance, net 3.2 3.3
Service, body & parts 13.9 16.2
Fleet and other 0.5 0.2
Adjusted As reported
----------------- ------------------
Nine Months Ended Nine Months Ended
September 30, September 30,
----------------- ------------------
Other metrics 2010 2009 2010 2009
------ ------ ------ ------
SG&A as a % of revenue 14.1% 15.4% 14.2% 15.4%
SG&A as a % of gross profit 77.6 79.9 77.9 80.2
Operating profit as a % of
revenue 3.2 3.0 2.2 2.4
Operating profit as a % of
gross profit 17.8 15.6 12.3 12.4
Pretax margin 2.0 1.6 1.0 1.1
Lithia Motors, Inc.
Key Performance Metrics (Unaudited)
Nine Months Ended
September 30,
-------------------
2010 2009
--------- --------
New vehicle unit sales brand mix
Chrysler 28.1% 30.9 %
General Motors 16.5 16.1
Toyota 13.4 14.7
Honda 8.5 8.6
Hyundai 5.9 5.3
Ford 5.8 4.7
Subaru 5.5 5.1
BMW 5.3 4.7
Volkswagen, Audi 3.6 3.2
Nissan 3.5 4.0
Kia 2.0 0.6
Mercedes 1.1 1.0
Other 0.8 1.1
Same store revenue changes
New vehicle retail 14.8% (29.7)%
Used vehicle retail 18.8 (2.2)
Used vehicle wholesale 45.4 (33.3)
Finance & insurance 11.5 (30.0)
Service, body & parts (1.2) (3.9)
Total sales (excluding fleet) 14.4 (20.3)
Same store gross profit changes
New vehicle retail 10.3% (21.0)%
Used vehicle retail 24.1 21.7
Used vehicle wholesale 34.3 (128.5)
Service, body & parts 0.1 (3.0)
Total gross profit (excluding fleet) 8.9 (8.6)
Geographic revenue mix
Texas 24.5% 23.7 %
Oregon 15.2 16.6
California 11.3 11.6
Alaska 10.4 9.9
Washington 10.0 9.8
Montana 7.2 7.0
Iowa 7.0 7.1
Idaho 6.4 6.4
Nevada 4.1 4.0
North Dakota 2.1 1.8
Colorado 0.9 0.9
New Mexico 0.9 1.2
Lithia Motors, Inc.
Consolidated Balance Sheet (Unaudited)
(In thousands except per share data)
September 30, 2010 December 31, 2009
------------------ ------------------
Cash and cash equivalents $ 15,301 $ 12,776
Contracts in transit 28,649 21,940
Trade receivables, net 41,235 30,157
Inventory, net 392,906 328,726
Vehicles leased to others 8,253 7,384
Prepaid expenses and other 3,059 5,387
Assets held for sale - 11,693
------------------ ------------------
Total current assets $ 489,403 $ 418,063
Land and building, net 313,290 326,625
Equipment and other, net 49,700 59,429
Goodwill 6,186 -
Intangible assets, net 45,299 42,496
Other non-current assets 8,817 7,752
Deferred income taxes 42,394 40,735
------------------ ------------------
Total assets $ 955,089 $ 895,100
================== ==================
Flooring notes payable 223,949 210,488
Current maturities of line of
credit - 24,000
Current maturities of other debt 14,898 14,303
Trade payables 24,957 18,782
Accrued liabilities 59,793 47,518
Deferred income taxes - 1,036
Liabilities related to assets held
for sale - 5,050
------------------ ------------------
Total current liabilities $ 323,597 $ 321,177
Real estate debt 237,056 230,265
Other long-term debt 42,733 2,800
Deferred revenue 19,963 17,981
Other long-term liabilities 17,257 15,839
------------------ ------------------
Total liabilities $ 640,606 $ 588,062
------------------ ------------------
Class A common stock 283,275 280,880
Class B common stock 468 468
Additional paid-in capital 10,644 10,501
Other comprehensive income (5,676) (3,850)
Retained earnings 25,772 19,039
------------------ ------------------
Total liabilities & shareholders'
equity $ 955,089 $ 895,100
================== ==================
Lithia Motors, Inc.
Summarized Cash Flow from Operations (Unaudited)
(In thousands)
Nine Months Ended
September 30,
--------------------
2010 2009
--------- ---------
Net income $ 9,340 $ 10,705
Adjustments to reconcile net income to cash provided
by (used in) operating activities:
Asset impairments 14,751 7,164
Depreciation and amortization 13,397 12,452
Amortization of debt discount - 48
Stock-based compensation 1,450 1,584
Gain on early extinguishment of debt - (1,317)
(Gain) loss on disposal of assets 235 (7,982)
Deferred income taxes (2,610) 1,006
Excess tax deficit (benefit) from share-based
payment arrangements (89) 45
(Increase) decrease, net of effect of acquisitions
and divestitures
Trade receivables, net (11,045) 11,032
Contracts in transit (6,709) 8,900
Inventories (55,359) 167,545
Vehicles leased to others (1,870) 696
Prepaid expenses and other 2,564 19,136
Other non-current assets (1,124) 7
Increase (decrease), net of effect of acquisitions
and divestitures
Floorplan notes payable 2,338 (170,803)
Trade payables 6,167 (431)
Accrued liabilities 11,181 4,680
Other long-term liabilities and deferred revenue 623 9,016
--------- ---------
Net cash provided by (used in) operating activities $ (16,760) $ 73,483
Lithia Motors, Inc.
Reconciliation of Non-GAAP Cash Flow from Operations (Unaudited)
(In thousands)
Nine Months Ended
September 30,
---------------------
Net cash provided by (used in) operating activities 2010 2009
--------- ----------
As reported $ (16,760) $ 73,483
Floorplan notes payable, non-trade 13,807 7,384
--------- ----------
Adjusted $ (2,953) $ 80,867
Lithia Motors, Inc.
Other Highlights (Unaudited)
(In thousands except per share data)
September December
30, 2010 31, 2009
------------ ------------
Other information
Lt debt/total cap 47.2% 43.2%
Adjusted Lt debt/
total cap
(excludes mortgage
financing) 12.0% 0.9%
Book value per
outstanding share $ 12.01 $ 11.90
Debt covenant ratios
Requirement As of September 30, 2010
-------------------------- ------------------------
Minimum tangible
net worth Not less than $200 million $266.2 million
Vehicle equity Not less than $65 million $195.6 million
Fixed charge
coverage ratio Not less than 1.20 to 1 1.60 to 1
Liabilities to
tangible net
worth ratio Not more than 4.00 to 1 2.41 to 1
Lithia Motors, Inc.
Reconciliation of Certain Non-GAAP Financial Measures (Unaudited)
(In thousands)
Three months ended Nine months ended
September 30, September 30,
-------------------- --------------------
2010 2009 2010 2009
---------- --------- --------- ---------
Selling, general &
administrative
As reported $ 77,468 $ 71,557 $ 223,320 $ 209,469
Impairments and disposal
gain - (393) 365 (956)
Lease termination and
severance reserve - - (1,334) -
---------- --------- --------- ---------
Adjusted $ 77,468 $ 71,164 $ 222,351 $ 208,513
Income from operations
As reported $ 23,238 $ 18,086 $ 35,132 $ 32,487
Impairments and disposal
gain - 2,360 14,451 8,120
Lease termination and
severance reserve - - 1,334 -
---------- --------- --------- ---------
Adjusted $ 23,238 $ 20,446 $ 50,917 $ 40,607
Income (loss) from continuing
operations before income taxes
As reported $ 16,501 $ 11,767 $ 16,243 $ 14,667
Impairments and disposal
gain - 2,360 14,451 8,120
Lease termination and
severance reserve - - 1,334 -
Gain on extinguishment of
debt - - - (1,317)
---------- --------- --------- ---------
Adjusted $ 16,501 $ 14,127 $ 32,028 $ 21,470
Lithia Motors, Inc.
Reconciliation of Certain Non-GAAP Financial Measures (Unaudited)
(In thousands except per share data)
Adjusted net income/(loss) and diluted earnings per share
Three Months Ended September 30,
Net income/(loss) Diluted earnings per share
------------------------ ------------------------
2010 2009 2010 2009
----------- ----------- ----------- -----------
Continuing Operations
As reported $ 9,792 $ 6,975 $ 0.37 $ 0.33
Impairments and
disposal gain - 1,571 - 0.07
----------- ----------- ----------- -----------
Adjusted $ 9,792 $ 8,546 $ 0.37 $ 0.40
Discontinued Operations
As reported $ - $ (1,262) $ - $ (0.06)
Impairments and
disposal (gain) loss - 306 - 0.01
----------- ----------- ----------- -----------
Adjusted $ - $ (956) $ - (0.05)
Consolidated Operations
As reported $ 9,792 $ 5,713 $ 0.37 $ 0.27
Adjusted 9,792 7,590 0.37 0.35
Nine Months Ended September 30,
Net income/(loss) Diluted earnings per share
------------------------ ------------------------
2010 2009 2010 2009
----------- ----------- ----------- -----------
Continuing Operations
As reported $ 9,721 $ 8,730 $ 0.37 $ 0.42
Impairments and
disposal gain 8,777 5,002 0.34 0.24
Lease termination
and severance
reserve 725 - 0.03 -
Gain on
extinguishment of
debt - (812) - (0.04)
----------- ----------- ----------- -----------
Adjusted $ 19,223 $ 12,920 $ 0.74 $ 0.62
Discontinued Operations
As reported $ (381) $ 1,975 $ (0.01) $ 0.09
Impairments and
disposal (gain) loss 173 (5,115) - (0.24)
----------- ----------- ----------- -----------
Adjusted $ (208) $ (3,140) $ (0.01) $ (0.15)
Consolidated Operations
As reported $ 9,340 $ 10,705 $ 0.36 $ 0.51
Adjusted 19,015 9,780 0.73 0.47
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SOURCE: Lithia Motors, Inc. |
