|
Full year net loss from continuing operations of $199 million, including $205 million after tax, non-cash impairment charges $0.15 per share net income from continuing operations in 2008, excluding impairment charges and other items Restructuring and divestiture plan progressing as expected, with $43 million of annualized cost reductions completed through Q4 The Company remains in compliance with all debt covenants
MEDFORD, Ore.--(BUSINESS WIRE)--Mar. 16, 2009-- Lithia Motors, Inc. (NYSE:LAD) today announced that net loss from continuing operations in the fourth quarter of 2008 was $419,000 or two cents per diluted share, compared to the prior year net loss from continuing operations of $409,000 or two cents per share, due to restatement of last year's results following discontinued operations designations. The Company realized a benefit of $3.6 million, or eight cents per share after tax, from early retirement of convertible notes. After adjusting for this item as shown in the attached financial tables, net loss from continuing operations for the 2008 fourth quarter was $2.0 million, or ten cents per share.
Consolidated net loss was twenty-one cents per share after inclusion of nine cents per share operating loss and ten cents per share impairment on discontinued operations for the fourth quarter of 2008.
After adjusting for impairment charges and certain other items disclosed in the attached financial tables, net income from continuing operations for the full year 2008 was $3.0 million or $0.15 per diluted share.
Same store sales for new and used vehicles declined 39.2% and 17.4% respectively, when compared to the same quarter last year. Parts and service same-store sales held relatively stable with a slight decline of 1.7% compared to the same quarter last year.
Sid DeBoer
, Lithia's Chairman and CEO, commented, "With continuing challenges in the marketplace, Lithia Motors is steadily executing its right sizing and cost cutting initiatives. We will continue to take necessary measures to keep our company strong, and to position our company for high performance once the economy does improve.
"Our fourth quarter operating results were essentially flat with the same quarter last year, even though national economic conditions had deteriorated significantly. This illustrates the significant headway our company has made in our restructuring actions and cost reductions.
"These restructuring actions are ongoing, and we have shown great progress on the plans outlined over the past five quarters. We have aggressively cut costs, raised capital, paid down debt, and right-sized our company beginning in the third quarter of 2007 when we first saw signs of the economy shifting."
"The Company raised approximately $100 million dollars in 2008 from the sale of stores, financing of real estate, and the sale of development properties � excluding construction loan financing. Proceeds from these activities went toward reducing the line of credit from $184 million at the start of the year to approximately $86 million at the end of the fourth quarter. Additionally, the Company repurchased and retired half of their convertible notes in 2008 at a discount, which resulted in a pre-tax gain of approximately $5.2 million."
"We have accelerated cost cutting measures to be proportional to the rapid and unexpected decline in the economy. Since these cost reduction efforts began, we have completed $43 million of annualized SG&A cost reductions in continuing operations. These cuts are more than double our initial $18 million target announced in June of 2008. All cost reductions have been designed to not impact customer service or sales volumes. Of these completed cost reductions, approximately $15 million are reflected in our 2008 results, as they occurred throughout the latter half of the year. We will pursue additional cost savings and endeavor to expand our market share in a declining market. We will report on the quarterly progress as it is achieved," concluded Mr. DeBoer.
About Lithia
Lithia Motors, Inc. is a Fortune 700 Company, selling 27 brands of new and all brands of used vehicles at 93 stores, which are located in 39 markets within 13 states. Internet sales are centralized at www.Lithia.com. Lithia also sells used vehicles; arranges finance, warranty, and credit insurance contracts; and provides vehicle parts, maintenance, and repair services at all of its locations.
Additional Information
For additional information on Lithia Motors, contact the Investor Relations Department: (541) 776-6591 or log-on to: www.lithia.com � go to Investor Relations
Forward Looking Statements
This press release includes forward looking statements within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. These statements are necessarily subject to risk and uncertainty and actual results could differ materially due to certain risk factors, including without limitation, future economic conditions and others set forth from time to time in the company's filings with the SEC. We make forward-looking statements about (i) the execution of our cost cutting measures and our restructuring plan, (ii) our ability to reduce our store count and effect a balanced import/export new vehicle sales mix, (iii) anticipated reduction in vehicle inventories, (iv) projected annualized interest expense reduction and (v) expected future profitability. Specific risks in this press release include execution of the restructuring plan and expense reductions, future interest rates and macro-economic and market factors affecting the company's sales levels and profitability.
The attached financial tables contain certain non-GAAP financial measures as defined under SEC rules, such as net income and diluted earnings per share from continuing operations, adjusted in each case to exclude certain items disclosed in the attached financial tables. As required by SEC rules, the Company has provided reconciliations of these measures to the most directly comparable GAAP measures, which are set forth in the attachments to this release. The Company believes that each of the foregoing non-GAAP financial measures improves the transparency of the Company's disclosure, provides a meaningful presentation of the Company's results from its core business operations excluding the impact of items not related to the Company's ongoing core business operations, and improves the period-to-period comparability of the Company's results from its core business operations.
|
LITHIA MOTORS, INC.
(In Thousands except per share data)
|
|
|
|
|
|
|
| Unaudited |
Three Months Ended |
|
|
|
% |
|
December 31, |
|
Increase |
|
Increase |
|
2008 |
|
|
2007 |
|
|
(Decrease) |
|
(Decrease) |
| New vehicle sales |
$205,331 |
|
|
$335,329 |
|
|
$(129,998 |
) |
|
(38.8 |
) |
% |
| Used vehicle sales |
110,929 |
|
|
142,396 |
|
|
(31,467 |
) |
|
(22.1 |
) |
|
| Finance and insurance |
14,028 |
|
|
20,045 |
|
|
(6,017 |
) |
|
(30.0 |
) |
|
| Service, body and parts |
74,650 |
|
|
76,064 |
|
|
(1,414 |
) |
|
(1.9 |
) |
|
| Fleet and other revenues |
1,655 |
|
|
1,014 |
|
|
641 |
|
|
63.2 |
|
|
| Total revenues |
406,593 |
|
|
574,848 |
|
|
(168,255 |
) |
|
(29.3 |
) |
|
|
|
|
|
|
|
|
|
|
| Cost of sales |
328,741 |
|
|
479,063 |
|
|
(150,322 |
) |
|
(31.4 |
) |
|
| Gross Profit |
77,852 |
|
|
95,785 |
|
|
(17,933 |
) |
|
(18.7 |
) |
|
| SG&A expense |
69,112 |
|
|
82,173 |
|
|
(13,061 |
) |
|
(15.9 |
) |
|
| Depreciation and amortization |
4,279 |
|
|
4,639 |
|
|
(360 |
) |
|
(7.8 |
) |
|
| Income from operations |
4,461 |
|
|
8,973 |
|
|
(4,512 |
) |
|
(50.3 |
) |
|
|
|
|
|
|
|
|
|
|
| Floorplan interest expense |
(5,527 |
) |
|
(5,438 |
) |
|
89 |
|
|
1.6 |
|
|
| Other interest expense |
(4,047 |
) |
|
(4,265 |
) |
|
(218 |
) |
|
(5.1 |
) |
|
| Other income, net |
3,643 |
|
|
279 |
|
|
3,364 |
|
|
1,205.7 |
|
|
|
Loss from continuing operations before income taxes
|
(1,470 |
) |
|
(451 |
) |
|
(1,019 |
) |
|
225.9 |
|
|
|
|
|
|
|
|
|
|
|
| Income tax benefit |
(1,051 |
) |
|
(42 |
) |
|
(1,009 |
) |
|
2,402.4 |
|
|
| Income Tax Rate |
71.5 |
% |
|
9.3 |
% |
|
|
|
|
|
| Loss from continuing operations |
(419 |
) |
|
(409 |
) |
|
(10 |
) |
|
2.4 |
|
|
|
|
|
|
|
|
|
|
|
| Discontinued Operations: |
|
|
|
|
|
|
|
|
| Loss from operations,
net of income tax
|
(1,786 |
) |
|
(1,795 |
) |
|
9 |
|
|
NM |
|
|
| Loss on disposal activities,
net of income tax
|
(2,073 |
) |
|
(2,502 |
) |
|
429 |
|
|
NM |
|
|
|
Net loss
|
$(4,278 |
) |
|
$(4,706 |
) |
|
428 |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
| Diluted net loss per share: |
|
|
|
|
|
|
|
|
| Continuing Operations |
(0.02 |
) |
|
(0.02 |
) |
|
0 |
|
|
0 |
|
|
| Discontinued Operations: |
|
|
|
|
|
|
|
|
|
Loss from operations, net of income tax
|
(0.09 |
) |
|
(0.09 |
) |
|
|
|
|
|
|
Loss on disposal activities, net of income tax
|
(0.10 |
) |
|
(0.13 |
) |
|
|
|
|
|
| Net loss per share |
$(0.21 |
) |
|
$(0.24 |
) |
|
$0.03 |
|
|
(12.5 |
) |
|
| Diluted shares outstanding |
20,354 |
|
|
19,597 |
|
|
757 |
|
|
3.9 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM � Not Meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lithia Motors, Inc.
|
|
|
|
|
|
|
|
|
(Continuing Operations)
Unaudited
|
|
Three Months Ended
December 31,
|
|
Increase
|
|
%
Increase
|
|
|
|
2008 |
|
2007 |
|
(Decrease) |
|
(Decrease) |
|
|
Unit Sales:
|
|
|
|
|
|
|
|
|
|
| New Vehicle |
|
6,797 |
|
11,254 |
|
(4,457) |
|
(39.6) |
% |
| Used - Retail Vehicle |
|
6,119 |
|
6,515 |
|
(396) |
|
(6.1) |
|
| Used - Wholesale |
|
2,941 |
|
4,362 |
|
(1,421) |
|
(32.6) |
|
| Total Units Sold |
|
15,857 |
|
22,131 |
|
(6,274) |
|
(28.3) |
|
|
|
|
|
|
|
|
|
|
|
|
Average Selling Price:
|
|
|
|
|
|
|
|
|
|
| New Vehicle |
|
$ 30,209 |
|
$ 29,796 |
|
$ 413 |
|
1.4 |
% |
| Used - Retail Vehicle |
|
15,675 |
|
17,455 |
|
(1,780) |
|
(10.2) |
|
| Used - Wholesale |
|
5,105 |
|
6,575 |
|
(1,470) |
|
(22.4) |
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin/Profit Data
|
|
|
|
|
|
|
|
|
|
| New Vehicle Retail |
|
8.4 |
% |
7.6 |
% |
80 bps |
|
|
|
| Used Vehicle Retail |
|
11.5 |
% |
12.5 |
% |
-100 bps |
|
|
|
| Used Vehicle Wholesale |
|
(4.5) |
% |
1.0 |
% |
-550 bps |
|
|
|
| Service, Body & Parts |
|
47.9 |
% |
46.7 |
% |
120 bps |
|
|
|
| Finance & Insurance |
|
100.0 |
% |
100.0 |
% |
0 |
|
|
|
| Gross Profit Margin |
|
19.1 |
% |
16.7 |
% |
240 bps |
|
|
|
| New Retail Gross Profit/Unit |
|
$2,543 |
|
$2,251 |
|
$292 |
|
|
|
| Used Retail Gross Profit/Unit |
|
1,808 |
|
2,174 |
|
(366) |
|
|
|
| Used Wholesale Gross Profit/Unit |
|
(228) |
|
65 |
|
(293) |
|
|
|
| Finance & Insurance/Retail Unit |
|
1,086 |
|
1,128 |
|
(42) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Mix:
|
|
|
|
|
|
|
|
|
|
| New Vehicles |
|
50.5 |
% |
58.3 |
% |
|
|
|
|
| Used Retail Vehicles |
|
23.6 |
% |
19.8 |
% |
|
|
|
|
| Used Wholesale Vehicles |
|
3.6 |
% |
5.0 |
% |
|
|
|
|
| Finance and Insurance, Net |
|
3.5 |
% |
3.5 |
% |
|
|
|
|
| Service and Parts |
|
18.4 |
% |
13.2 |
% |
|
|
|
|
| Fleet and other |
|
0.4 |
% |
0.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicle Unit Sales Brand Mix:
|
|
|
|
|
|
|
|
|
|
| Chrysler Brands |
|
32.3 |
% |
32.8 |
% |
|
|
|
|
| General Motors & Saturn |
|
15.8 |
% |
17.8 |
% |
|
|
|
|
| Toyota |
|
17.1 |
% |
15.9 |
% |
|
|
|
|
| Honda |
|
8.5 |
% |
8.8 |
% |
|
|
|
|
| Ford |
|
4.8 |
% |
4.7 |
% |
|
|
|
|
| BMW |
|
5.3 |
% |
5.2 |
% |
|
|
|
|
| Hyundai |
|
3.4 |
% |
3.2 |
% |
|
|
|
|
| Nissan |
|
2.8 |
% |
4.2 |
% |
|
|
|
|
| Volkswagen, Audi |
|
4.0 |
% |
3.1 |
% |
|
|
|
|
| Subaru |
|
3.9 |
% |
2.3 |
% |
|
|
|
|
| Other |
|
2.1 |
% |
2.0 |
% |
|
|
|
|
|
LITHIA MOTORS, INC.
(Selected Same Store Data)
|
|
| Unaudited |
Three Months Ended |
|
December 31,
|
|
2008 |
|
2007 |
|
Same Store Total Sales Geographic Mix:
|
|
| Texas |
26.3 |
|
% |
|
27.1
|
%
|
| Oregon |
13.9 |
|
% |
|
15.4
|
%
|
| California |
12.7 |
|
% |
|
12.8
|
%
|
| Alaska |
9.6 |
|
% |
|
8.3
|
%
|
| Washington |
9.1 |
|
% |
|
9.4
|
%
|
| Iowa |
7.4 |
|
% |
|
6.8
|
%
|
| Montana |
7.0 |
|
% |
|
7.1
|
%
|
| Idaho |
6.6 |
|
% |
|
5.9
|
%
|
| Nevada |
4.6 |
|
% |
|
4.4
|
%
|
| Colorado |
1.7 |
|
% |
|
1.6
|
%
|
| Nebraska |
1.1 |
|
% |
|
1.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Same Store Revenue:
|
|
|
|
|
| New Vehicle Retail Sales |
(39.2 |
) |
% |
|
(4.8
|
)%
|
| Used Vehicle Retail Sales |
(17.4 |
) |
% |
|
(6.1
|
)%
|
| Used Wholesale Sales |
(50.2 |
) |
% |
|
(7.0
|
)%
|
| Total Vehicle Sales (excluding Fleet) |
(34.7 |
) |
% |
|
(5.2
|
)%
|
| Finance & Insurance Sales |
(32.0 |
) |
% |
|
(10.2
|
)%
|
| Service, Body and Parts Sales |
(1.7 |
) |
% |
|
3.7
|
%
|
| Total Sales (excluding Fleet) |
(30.3 |
) |
% |
|
(4.3
|
)%
|
| Total Gross Profit (excluding Fleet) |
(19.9 |
) |
% |
|
(9.1
|
)%
|
|
LITHIA MOTORS, INC.
(In Thousands except per share data)
|
| Unaudited |
Twelve Months Ended |
|
|
|
% |
|
December 31, |
|
Increase |
|
Increase |
|
2008 |
|
|
2007 |
|
|
(Decrease) |
|
(Decrease) |
| New vehicle sales |
$1,172,807 |
|
|
$1,528,246 |
|
|
$(355,439 |
) |
|
(23.3 |
) |
% |
| Used vehicle sales |
574,373 |
|
|
686,728 |
|
|
(112,355 |
) |
|
(16.4 |
) |
|
| Finance and insurance |
78,970 |
|
|
99,727 |
|
|
(20,757 |
) |
|
(20.8 |
) |
|
| Service, body and parts |
306,743 |
|
|
304,302 |
|
|
2,441 |
|
|
0.8 |
|
|
| Fleet and other revenues |
4,911 |
|
|
5,279 |
|
|
(368 |
) |
|
(7.0 |
) |
|
| Total revenues |
2,137,804 |
|
|
2,624,282 |
|
|
(486,478 |
) |
|
(18.5 |
) |
|
| Cost of sales |
1,767,760 |
|
|
2,177,493 |
|
|
(409,733 |
) |
|
(18.8 |
) |
|
| Gross Profit |
370,044 |
|
|
446,789 |
|
|
(76,745 |
) |
|
(17.2 |
) |
|
| Asset impairment charges |
295,905 |
|
|
- |
|
|
295,905 |
|
|
NM |
|
|
| SG&A expense |
316,183 |
|
|
349,283 |
|
|
(33,100 |
) |
|
(9.5 |
) |
|
| Depreciation and amortization |
17,732 |
|
|
16,862 |
|
|
870 |
|
|
5.2 |
|
|
| Income (loss) from operations |
(259,776 |
) |
|
80,644 |
|
|
(340,420 |
) |
|
NM |
|
|
|
|
|
|
|
|
|
|
|
| Floorplan interest expense |
(20,398 |
) |
|
(24,373 |
) |
|
(3,975 |
) |
|
(16.3 |
) |
|
| Other interest expense |
(17,350 |
) |
|
(15,985 |
) |
|
1,365 |
|
|
8.5 |
|
|
| Other income, net |
6,673 |
|
|
641 |
|
|
6,032 |
|
|
941.0 |
|
|
| Income (loss) from continuing operations before income taxes |
(290,851 |
) |
|
40,927 |
|
|
(331,778 |
) |
|
NM |
|
|
|
|
|
|
|
|
|
|
|
| Income tax expense (benefit) |
(91,703 |
) |
|
16,485 |
|
|
(108,188 |
) |
|
NM |
|
|
| Income Tax Rate |
31.5 |
% |
|
40.3 |
% |
|
|
|
|
|
| Income (loss) from continuing operations |
(199,148 |
) |
|
24,442 |
|
|
(223,590 |
) |
|
NM |
|
|
|
|
|
|
|
|
|
|
|
| Discontinued Operations: |
|
|
|
|
|
|
|
|
|
Gain (loss) from operations, net of income tax
|
(9,898 |
) |
|
1,826 |
|
|
(11,724 |
) |
|
NM |
|
|
|
Loss on disposal activities, net of income tax
|
(43,540 |
) |
|
(4,719 |
) |
|
(38,821 |
) |
|
822.7 |
|
|
| Net income (loss) |
$(252,586 |
) |
|
$21,549 |
|
|
$(274,135 |
) |
|
NM |
|
|
|
|
|
|
|
|
|
|
|
| Diluted net income (loss) per share: |
|
|
|
|
|
|
|
|
| Continuing Operations |
$ (9.95 |
) |
|
$ 1.19 |
|
|
$(11.14 |
) |
|
NM |
|
|
| Discontinued Operations: |
|
|
|
|
|
|
|
|
|
Gain (loss) from operations, net of income tax
|
(0.49 |
) |
|
0.08 |
|
|
|
|
|
|
|
Loss on disposal activities, net of income tax
|
(2.18 |
) |
|
(0.21 |
) |
|
|
|
|
|
| Net income (loss) per share |
$(12.62 |
) |
|
$1.06 |
|
|
$(13.68 |
) |
|
NM |
|
|
| Diluted shares outstanding |
20,017
|
(A)
|
|
22,082 |
|
|
(2,065 |
) |
|
(9.4 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A) Excludes shares issuable upon conversion of the convertible debt as well as common stock equivalents, as their effect on EPS would be antidilutive.
|
| NM � Not Meaningful |
|
Lithia Motors, Inc.
|
|
|
|
|
|
|
|
(Continuing Operations) Unaudited
|
|
Twelve Months Ended
December 31,
|
|
Increase
|
|
%
Increase
|
|
|
2008 |
|
|
2007 |
|
(Decrease) |
|
(Decrease) |
|
Unit Sales:
|
|
|
|
|
|
|
|
|
|
| New Vehicle |
|
40,206 |
|
|
52,512 |
|
(12,306 |
) |
|
(23.4 |
) |
% |
| Used - Retail Vehicle |
|
28,853 |
|
|
32,700 |
|
(3,847 |
) |
|
(11.8 |
) |
|
| Used - Wholesale |
|
16,631 |
|
|
20,264 |
|
(3,633 |
) |
|
(17.9 |
) |
|
| Total Units Sold |
|
85,690 |
|
|
105,476 |
|
(19,786 |
) |
|
(18.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Average Selling Price:
|
|
|
|
|
|
|
|
|
|
| New Vehicle |
|
$29,170 |
|
|
$29,103 |
|
$67 |
|
|
0.2 |
|
% |
| Used - Retail Vehicle |
|
$16,522 |
|
|
$16,896 |
|
$(374 |
) |
|
(2.2 |
) |
|
| Used - Wholesale |
|
$5,872 |
|
|
$6,625 |
|
$(753 |
) |
|
(11.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin/Profit Data
|
|
|
|
|
|
|
|
|
|
| New Vehicle Retail |
|
7.8 |
|
% |
7.8 |
% |
0 |
|
|
|
|
| Used Vehicle Retail |
|
11.3 |
|
% |
14.1 |
% |
-280 bps |
|
|
|
| Used Vehicle Wholesale |
|
(3.1 |
) |
% |
2.3 |
% |
-540 bps |
|
|
|
| Service, Body & Parts |
|
47.9 |
|
% |
47.7 |
% |
20 bps |
|
|
|
| Finance & Insurance |
|
100.0 |
|
% |
100.0 |
% |
0 |
|
|
|
|
| Gross Profit Margin |
|
17.3 |
|
% |
17.0 |
% |
30 bps |
|
|
|
| New Retail Gross Profit/Unit |
|
$2,283 |
|
|
$2,280 |
|
$ 3 |
|
|
|
|
| Used Retail Gross Profit/Unit |
|
1,871 |
|
|
2,376 |
|
(505 |
) |
|
|
|
| Used Wholesale Gross Profit/Unit |
|
(184 |
) |
|
156 |
|
(340 |
) |
|
|
|
| Finance & Insurance/Retail Unit |
|
1,144 |
|
|
1,170 |
|
(26 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Mix:
|
|
|
|
|
|
|
|
|
|
| New Vehicles |
|
54.9 |
|
% |
58.2 |
% |
|
|
|
|
| Used Retail Vehicles |
|
22.3 |
|
% |
21.1 |
% |
|
|
|
|
| Used Wholesale Vehicles |
|
4.6 |
|
% |
5.1 |
% |
|
|
|
|
| Finance and Insurance, Net |
|
3.7 |
|
% |
3.8 |
% |
|
|
|
|
| Service and Parts |
|
14.3 |
|
% |
11.6 |
% |
|
|
|
|
| Fleet and other |
|
0.2 |
|
% |
0.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Vehicle Unit Sales Brand Mix:
|
|
|
|
|
|
|
|
|
|
| Chrysler Brands |
|
30.5 |
|
% |
34.4 |
% |
|
|
|
|
| General Motors & Saturn |
|
18.6 |
|
% |
17.2 |
% |
|
|
|
|
| Toyota |
|
17.0 |
|
% |
15.8 |
% |
|
|
|
|
| Honda |
|
9.2 |
|
% |
8.1 |
% |
|
|
|
|
| Ford |
|
4.3 |
|
% |
5.4 |
% |
|
|
|
|
| BMW |
|
4.7 |
|
% |
4.6 |
% |
|
|
|
|
| Hyundai |
|
3.3 |
|
% |
3.4 |
% |
|
|
|
|
| Nissan |
|
3.9 |
|
% |
4.3 |
% |
|
|
|
|
| Volkswagen, Audi |
|
3.3 |
|
% |
2.6 |
% |
|
|
|
|
| Subaru |
|
2.7 |
|
% |
2.0 |
% |
|
|
|
|
| Other |
|
2.5 |
|
% |
2.2 |
% |
|
|
|
|
|
LITHIA MOTORS, INC.
(Selected Same Store Data)
|
|
|
| Unaudited |
Twelve Months Ended |
|
December 31, |
|
2008 |
|
2007 |
|
Same Store Total Sales Geographic Mix:
|
|
| Texas |
28.2 |
|
% |
|
25.6 |
|
% |
| Oregon |
14.3 |
|
% |
|
16.3 |
|
% |
| California |
12.7 |
|
% |
|
13.9 |
|
% |
| Alaska |
9.0 |
|
% |
|
8.0 |
|
% |
| Washington |
8.7 |
|
% |
|
8.8 |
|
% |
| Iowa |
7.2 |
|
% |
|
6.2 |
|
% |
| Montana |
6.7 |
|
% |
|
7.1 |
|
% |
| Idaho |
5.8 |
|
% |
|
6.2 |
|
% |
| Nevada |
4.5 |
|
% |
|
4.8 |
|
% |
| Colorado |
1.7 |
|
% |
|
1.7 |
|
% |
| Nebraska |
1.2 |
|
% |
|
1.4 |
|
% |
|
|
|
|
|
|
|
Same Store Revenue:
|
|
|
|
|
|
| New Vehicle Retail Sales |
(24.1 |
) |
% |
|
(3.6 |
) |
% |
| Used Vehicle Retail Sales |
(15.8 |
) |
% |
|
(7.1 |
) |
% |
| Used Wholesale Sales |
(29.3 |
) |
% |
|
3.6 |
|
% |
| Total Vehicle Sales (excluding Fleet) |
(22.3 |
) |
% |
|
(4.1 |
) |
% |
| Finance & Insurance Sales |
(20.8 |
) |
% |
|
(3.1 |
) |
% |
| Service, Body and Parts Sales |
(0.3 |
) |
% |
|
4.0 |
|
% |
| Total Sales (excluding Fleet) |
(19.7 |
) |
% |
|
(3.2 |
) |
% |
| Total Gross Profit (excluding Fleet) |
(18.6 |
) |
% |
|
(4.4 |
) |
% |
|
LITHIA MOTORS, INC.
|
|
|
| Balance Sheet Highlights (Dollars in Thousands) |
|
|
| Unaudited |
|
|
|
|
December 31, 2008 |
|
December 31, 2007 |
| Cash & Cash Equivalents |
$10,874 |
|
$21,665 |
| Trade Receivables* |
69,615 |
|
109,387 |
| Inventory |
422,812 |
|
601,759 |
| Assets held for sale |
161,423 |
|
23,807 |
| Other Current Assets |
31,828 |
|
21,920 |
| Total Current Assets |
696,552 |
|
778,538 |
|
|
|
|
| Real Estate, net |
284,088 |
|
363,391 |
| Equipment & Other, net |
62,188 |
|
98,355 |
| Goodwill, net |
- |
|
311,527 |
| Other Assets |
90,631 |
|
74,924 |
| Total Assets |
$1,133,459 |
|
$1,626,735 |
|
|
|
|
| Flooring Notes Payable |
$337,700 |
|
$451,590 |
| Liabilities held for sale |
108,172 |
|
17,857 |
| Current maturities of senior subordinated convertible notes |
42,500 |
|
- |
| Other Current Liabilities |
108,656 |
|
115,644 |
| Total Current Liabilities |
597,028 |
|
585,091 |
|
|
|
|
| Real Estate Debt |
163,708 |
|
179,160 |
| Other Long-Term Debt |
101,476 |
|
276,335 |
| Other Liabilities |
22,904 |
|
77,937 |
| Total Liabilities |
$885,116 |
|
$1,118,523 |
|
|
|
|
| Shareholders' Equity |
248,343 |
|
508,212 |
|
|
|
|
| Total Liabilities & Shareholders' Equity |
$1,133,459 |
|
$1,626,735 |
|
|
|
|
|
|
|
|
|
|
|
|
| *Note: Includes contracts-in-transit of $27,799 and $48,474 for 2008 and 2007 |
|
|
|
|
| Other Balance Sheet Data (Dollars in Thousands) |
|
|
|
|
|
|
|
| Current Ratio |
1.2x |
|
1.3x |
LT Debt/Total Cap.
(Excludes Real Estate) |
29% |
|
35% |
| Working Capital |
$99,524 |
|
$193,447 |
| Book Value per Basic Share |
12.41 |
|
26.02 |
| The following table reconciles reported GAAP pretax income (loss) per the income statement to non-GAAP pretax income (loss): |
|
Three Months Ended December 31, |
|
Twelve months ended December 31, |
|
2008 |
|
2007 |
|
2008 |
|
2007 |
|
Income (loss) from continuing operations before income taxes - as reported
|
(1,470 |
) |
|
(451 |
) |
|
(290,851 |
) |
|
40,927 |
|
| Add back: Goodwill and other asset impairment |
- |
|
|
- |
|
|
301,000 |
|
|
- |
|
| Reduce by: Gain on convertible debt repurchases |
(3,605 |
) |
|
- |
|
|
(5,248 |
) |
|
- |
|
|
Pretax income (loss) from continuing operations - non-GAAP
|
(5,075 |
) |
|
(451 |
) |
|
4,901 |
|
|
40,927 |
|
|
|
|
|
|
|
|
|
|
Income (loss) from discontinued operations before income taxes - as reported
|
(5,221 |
) |
|
(5,632 |
) |
|
(85,435 |
) |
|
(3,295 |
) |
|
Add back: Goodwill and other asset impairment
|
2,934 |
|
|
2,230 |
|
|
70,063 |
|
|
5,923 |
|
|
Pretax loss from discontinued operations - non-GAAP
|
(2,287 |
) |
|
(3,402 |
) |
|
(15,372 |
) |
|
2,628 |
|
|
|
|
|
|
|
|
|
| Total Pretax income (loss) - as reported |
(6,691 |
) |
|
(6,083 |
) |
|
(376,286 |
) |
|
37,632 |
|
| Add back: Goodwill and other asset impairment |
2,934 |
|
|
2,230 |
|
|
371,063 |
|
|
5,923 |
|
| Reduce by: Gain on convertible debt repurchases |
(3,605 |
) |
|
- |
|
|
(5,248 |
) |
|
- |
|
| Total Pretax income (loss) - non-GAAP |
(7,362 |
) |
|
(3,853 |
) |
|
(10,471 |
) |
|
43,555 |
|
|
|
|
|
|
|
|
|
| The following table reconciles reported GAAP income (loss) per the income statement to non-GAAP income (loss): |
|
Three Months Ended December 31, |
|
Twelve months ended December 31, |
|
2008 |
|
2007 |
|
2008 |
|
2007 |
| Income (loss) from continuing operations - as reported |
(419 |
) |
|
(409 |
) |
|
(199,148 |
) |
|
24,442 |
|
| Add back: Goodwill and other asset impairment |
- |
|
|
- |
|
|
204,752 |
|
|
- |
|
| Reduce by: Gain on convertible debt repurchases |
(1,529 |
) |
|
- |
|
|
(2,568 |
) |
|
- |
|
| Income (loss) from continuing operations - non-GAAP |
(1,948 |
) |
|
(409 |
) |
|
3,036 |
|
|
24,442 |
|
|
|
|
|
|
|
|
|
| Income (loss) from discontinued operations - as reported |
(3,859 |
) |
|
(4,297 |
) |
|
(53,438 |
) |
|
(2,893 |
) |
| Add back: Goodwill and other asset impairment |
784 |
|
|
2,502 |
|
|
43,540 |
|
|
4,719 |
|
| Income (loss) from discontinued operations - non-GAAP |
(3,075 |
) |
|
(1,795 |
) |
|
(9,898 |
) |
|
1,826 |
|
|
|
|
|
|
|
|
|
| Net income (loss) - as reported |
(4,278 |
) |
|
(4,706 |
) |
|
(252,586 |
) |
|
21,549 |
|
| Add back: Goodwill and other asset impairment |
784 |
|
|
2,502 |
|
|
248,292 |
|
|
4,719 |
|
| Reduce by: Gain on convertible debt repurchases |
(1,529 |
) |
|
- |
|
|
(2,568 |
) |
|
- |
|
| Net income (loss) - non-GAAP |
(5,023 |
) |
|
(2,204 |
) |
|
(6,862 |
) |
|
26,268 |
|
|
|
|
|
|
|
|
|
| The following table reconciles reported GAAP diluted earnings (loss) per share ("EPS") to non-GAAP diluted earnings (loss) per share: |
|
Three Months Ended December 31, |
|
Twelve months ended December 31, |
|
2008 |
|
2007 |
|
2008 |
|
2007 |
|
Diluted net income per share from Continuing Operations - as reported
|
(0.02 |
) |
|
(0.02 |
) |
|
(9.95 |
) |
|
1.19 |
|
| Add back: Goodwill and other asset impairment |
- |
|
|
- |
|
|
10.23 |
|
|
- |
|
| Reduce by: Gain on convertible debt repurchases |
(0.08 |
) |
|
- |
|
|
(0.13 |
) |
|
- |
|
|
Diluted net income per share from Continuing Operations - non-GAAP
|
(0.10 |
) |
|
(0.02 |
) |
|
0.15 |
|
|
1.19 |
|
|
|
|
|
|
|
|
|
|
Diluted net income per share from Discontinued Operations - as reported
|
(0.19 |
) |
|
(0.22 |
) |
|
(2.67 |
) |
|
(0.13 |
) |
| Add back: Goodwill and other asset impairment |
0.04 |
|
|
0.13 |
|
|
2.18 |
|
|
0.21 |
|
|
Diluted net income per share from Discontinued Operations - non-GAAP
|
(0.15 |
) |
|
(0.09 |
) |
|
(0.49 |
) |
|
0.08 |
|
|
|
|
|
|
|
|
|
| Diluted net income per share - as reported |
(0.21 |
) |
|
(0.24 |
) |
|
(12.62 |
) |
|
1.06 |
|
| Add back: Goodwill and other asset impairment |
0.04 |
|
|
0.13 |
|
|
12.41 |
|
|
0.21 |
|
| Reduce by: Gain on convertible debt repurchases |
(0.08 |
) |
|
- |
|
|
(0.13 |
) |
|
- |
|
| Diluted net income per share - non-GAAP |
(0.25 |
) |
|
(0.11 |
) |
|
(0.34 |
) |
|
1.27 |
|
Source: Lithia Motors
Lithia Motors
Investor Relations Department, 541-776-6591
www.lithia.com
|
