Attached files
| file | filename |
|---|---|
| 8-K - LITHIA MOTORS INC | ladf8k1qeashpres042711cov.htm |
| EX-99.2 - LITHIA MOTORS INC | investorpresentation_draftv5.htm |
Exhibit 99.1
LITHIA MOTORS REPORTS ADJUSTED FIRST QUARTER 2011 EARNINGS OF $0.34 PER SHARE
Medford, Oregon, April 27, 2011 (8:00 a.m. ET) – Lithia Motors, Inc. (NYSE: LAD) today reported 2011 adjusted first quarter net income from continuing operations of $9.1 million, or $0.34 per diluted share. This compares to a 2010 adjusted first quarter net income from continuing operations of $2.3 million, or $0.09 per diluted share. First quarter 2011 revenue from continuing operations increased $143.8 million, or 31.3% to $603.0 million, compared to $459.2 million in the year-ago period.
First Quarter Operating Highlights:
· New vehicle same store sales increased 41%
· Used vehicle retail same store sales increased 17%
· Service, body and parts same store sales increased 8%
· Adjusted SG&A expense as a percentage of gross profit declined 680 basis points
As shown in the attached reconciliation table, the 2011 and 2010 first quarter adjusted results from continuing operations excluded non-core charges of $0.01 and $0.03 per share, respectively, on asset impairments, disposal gains, reserve adjustments, and a stock-based compensation tax shortfall. On a GAAP basis, net income from continuing operations for the first quarter of 2011 and 2010 was $8.7 million or $0.33 per diluted share and $1.4 million or $0.06 per diluted share, respectively.
Sid DeBoer, Lithia’s Chairman and CEO, commented, “Our team delivered another strong performance in the first quarter. Although new vehicle sales increased 45%, we maintained a near 1:1 used-to-new ratio. Service, body and parts sales increased 11% despite difficult comparisons due to the Toyota recalls last year. The economic recovery is expanding in our western markets, and our stores are focused on exceeding customer expectations.”
Balance Sheet Update
Lithia ended the period with $102.9 million in immediately available funds, including $13.1 million in cash, $37.6 million in availability on its revolving credit facility, and $52.2 million in unfinanced new vehicle inventory.
Acquisition
As previously announced, Lithia completed the acquisition of Rasmussen BMW / MINI, Mercedes-Benz of Portland and Mercedes-Benz of Wilsonville on April 18, 2011. The stores will add approximately $176 million in revenue over the next 12 months and are anticipated to add $0.08 per diluted share to full year 2011 results.
Outlook for 2011
Commenting on the Japanese tragedy, Mr. DeBoer continued, “Our sincere condolences go out to the people of Japan, and for the manufacturers and suppliers with employees impacted by the magnitude of events in March. While the entire supply chain is focused on minimizing the disruptions associated with the tragedy, it is clear that vehicle supply will be interrupted in the second and third quarters of 2011. Our guidance has been updated assuming our best estimate of the impact of these events on our operations. While we hope these assumptions prove to be conservative, the near-term outlook for our manufacturer partners remains uncertain.”
Lithia projects its 2011 second quarter earnings guidance within a range of $0.32 to $0.34 per diluted share. Full-year 2011 earnings guidance is projected within a range of $1.42 to $1.50 per diluted share. Both projections are based on the following annual assumptions:
· Total revenues in range of $2.5 to $2.6 billion
· New vehicle same store sales increasing 14%
· New vehicle gross margin ranging from 7.5% to 7.7%
· Used vehicle same store sales increasing 16%
· Used vehicle gross margin ranging from 14.0% to 14.3%
· Service body and parts same store sales increasing 2%
· Service body and parts gross margin ranging from 48.3% to 48.6%
· Finance and insurance gross profit of $980 per unit
· Tax rate of 40%
· Estimated average diluted shares outstanding of 26.9 million
· Capital expenditures of approximately $28 million
· Guidance excludes the impact of future acquisitions, dispositions, and any potential non-core items
First Quarter Earnings Conference Call and Updated Presentation
The first quarter conference call may be accessed at 10:00 a.m. ET today by telephone at 877- 407-8029. An updated presentation highlighting the first quarter results has been added to Investor Relations on www.lithia.com.
To listen live on our website or for replay, visit Investor Relations on www.lithia.com and click on webcasts. A playback of the conference call will be available after 1:00 p.m. ET on April 27, 2011 through May 4, 2011 by calling 877-660-6853 (Conference ID: 369958 Account: 305).
About Lithia
Lithia Motors, Inc. is the ninth largest automotive retailer in the United States. Lithia sells 26 brands of new and all brands of used vehicles at 86 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 John North, VP Finance / Controller at (541) 618-5748 or visit www.lithia.com and click on “Investor Relations.”
Sites
www.lithia.com
www.lithiacares.com
www.lithiajobs.com
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 second quarter and full year 2011 results, the effect of acquisitions on our full year 2011 EPS, the impact of the Japanese disaster on new vehicle sales levels and the sustainability of the economic recovery. 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. These measures 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 |
|
|
|
% |
| |||
|
|
March 31, |
|
Increase |
|
Increase |
| |||
|
|
2011 |
|
2010 |
|
(Decrease) |
|
(Decrease) |
| |
|
Revenues: |
|
|
|
|
|
|
|
| |
|
New vehicle retail |
$ 312,234 |
|
$ 215,617 |
|
$ 96,617 |
|
44.8 |
% | |
|
Used vehicle retail |
160,723 |
|
135,899 |
|
24,824 |
|
18.3 |
| |
|
Used vehicle wholesale |
30,386 |
|
23,465 |
|
6,921 |
|
29.5 |
| |
|
Finance and insurance |
19,923 |
|
14,638 |
|
5,285 |
|
36.1 |
| |
|
Service, body and parts |
76,585 |
|
68,797 |
|
7,788 |
|
11.3 |
| |
|
Fleet and other |
3,146 |
|
803 |
|
2,343 |
|
291.8 |
| |
|
Total revenues |
602,997 |
|
459,219 |
|
143,778 |
|
31.3 |
| |
|
Cost of sales: |
|
|
|
|
|
|
|
| |
|
New vehicle retail |
288,904 |
|
197,213 |
|
91,691 |
|
46.5 |
| |
|
Used vehicle retail |
137,131 |
|
117,305 |
|
19,826 |
|
16.9 |
| |
|
Used vehicle wholesale |
29,966 |
|
23,094 |
|
6,872 |
|
29.8 |
| |
|
Service, body and parts |
39,467 |
|
35,251 |
|
4,216 |
|
12.0 |
| |
|
Fleet and other |
2,595 |
|
451 |
|
2,144 |
|
475.4 |
| |
|
Total cost of sales |
498,063 |
|
373,314 |
|
124,749 |
|
33.4 |
| |
|
Gross profit |
104,934 |
|
85,905 |
|
19,029 |
|
22.2 |
| |
|
Asset impairment charges |
382 |
|
1,491 |
|
(1,109) |
|
(74.4) |
| |
|
SG&A expense |
79,741 |
|
71,039 |
|
8,702 |
|
12.2 |
| |
|
Depreciation and amortization |
4,193 |
|
4,749 |
|
(556) |
|
(11.7) |
| |
|
Income from operations |
20,618 |
|
8,626 |
|
11,992 |
|
139.0 |
| |
|
Floorplan interest expense |
(2,563) |
|
(2,751) |
|
(188) |
|
(6.8) |
| |
|
Other interest expense |
(3,304) |
|
(3,588) |
|
(284) |
|
(7.9) |
| |
|
Other income, net |
77 |
|
68 |
|
9 |
|
13.2 |
| |
|
Income from continuing operations before income taxes |
14,828 |
|
2,355 |
|
12,473 |
|
529.6 |
| |
|
Income tax expense |
6,123 |
|
912 |
|
5,211 |
|
571.4 |
| |
|
Income tax rate |
41.3% |
|
38.7% |
|
|
|
|
| |
|
Income from continuing operations |
$ 8,705 |
|
$ 1,443 |
|
$ 7,262 |
|
503.3 |
% | |
|
|
|
|
|
|
|
|
|
| |
|
Loss from discontinued operations, net of income tax |
- |
|
(176) |
|
176 |
|
NM |
| |
|
Net income |
$ 8,705 |
|
$ 1,267 |
|
$ 7,438 |
|
587.1 |
% | |
|
|
|
|
|
|
|
|
|
| |
|
Diluted net income (loss) per share: |
|
|
|
|
|
|
|
| |
|
Continuing operations |
$ 0.33 |
|
$ 0.06 |
|
$ 0.27 |
|
450.0 |
% | |
|
Discontinued operations |
- |
|
(0.01) |
|
0.01 |
|
NM |
| |
|
Net income per share |
$ 0.33 |
|
$ 0.05 |
|
$ 0.28 |
|
560.0 |
% | |
|
|
|
|
|
|
|
|
|
| |
|
Diluted shares outstanding |
26,694 |
|
26,019 |
|
675 |
|
2.6 |
% | |
|
|
|
|
|
|
|
|
|
| |
Lithia Motors, Inc.
Key Performance Metrics (Unaudited)
|
|
Three Months Ended |
|
|
|
% |
| ||||
|
|
March 31, |
|
Increase |
|
Increase |
| ||||
|
|
2011 |
|
2010 |
|
(Decrease) |
|
(Decrease) |
| ||
|
Gross margin |
|
|
|
|
|
|
|
| ||
|
New vehicle retail |
7.5 |
% |
8.5 |
% |
(100) bps |
|
|
| ||
|
Used vehicle retail |
14.7 |
|
13.7 |
|
100 bps |
|
|
| ||
|
Used vehicle wholesale |
1.4 |
|
1.6 |
|
(20) bps |
|
|
| ||
|
Finance & insurance |
100.0 |
|
100.0 |
|
- bps |
|
|
| ||
|
Service, body & parts |
48.5 |
|
48.8 |
|
(30) bps |
|
|
| ||
|
Gross profit margin |
17.4 |
|
18.7 |
|
(130) bps |
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
|
Unit sales |
|
|
|
|
|
|
|
| ||
|
New vehicle retail |
9,929 |
|
6,884 |
|
3,045 |
|
44.2 |
% | ||
|
Used vehicle retail |
9,812 |
|
8,211 |
|
1,601 |
|
19.5 |
| ||
|
Used vehicle wholesale |
3,883 |
|
3,286 |
|
597 |
|
18.2 |
| ||
|
Total units sold |
23,624 |
|
18,381 |
|
5,243 |
|
28.5 |
| ||
|
|
|
|
|
|
|
|
|
| ||
|
Average selling price |
|
|
|
|
|
|
|
| ||
|
New vehicle retail |
$ 31,447 |
|
$ 31,321 |
|
$ 126 |
|
0.4 |
% | ||
|
Used vehicle retail |
16,380 |
|
16,551 |
|
(171) |
|
(1.0) |
| ||
|
Used vehicle wholesale |
7,825 |
|
7,141 |
|
684 |
|
9.6 |
| ||
|
|
|
|
|
|
|
|
|
| ||
|
Average gross profit per unit |
|
|
|
|
|
|
|
| ||
|
New vehicle retail |
$ 2,350 |
|
$ 2,673 |
|
$ (323) |
|
(12.1) |
% | ||
|
Used vehicle retail |
2,404 |
|
2,265 |
|
139 |
|
6.1 |
| ||
|
Used vehicle wholesale |
108 |
|
113 |
|
(5) |
|
(4.4) |
| ||
|
Finance & insurance |
1,009 |
|
970 |
|
39 |
|
4.0 |
| ||
|
|
|
|
|
|
|
|
|
| ||
|
Revenue mix |
|
|
|
|
|
|
|
| ||
|
New vehicle retail |
51.8 |
% |
47.0 |
% |
|
|
|
| ||
|
Used vehicle retail |
26.7 |
|
29.6 |
|
|
|
|
| ||
|
Used vehicle wholesale |
5.0 |
|
5.0 |
|
|
|
|
| ||
|
Finance & insurance, net |
3.3 |
|
3.2 |
|
|
|
|
| ||
|
Service, body & parts |
12.7 |
|
15.0 |
|
|
|
|
| ||
|
Fleet and other |
0.5 |
|
0.2 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
|
|
Adjusted |
|
As reported |
| ||||||
|
|
Three Months Ended |
|
Three Months Ended |
| ||||||
|
|
March 31, |
|
March 31, |
| ||||||
|
Other metrics |
2011 |
|
2010 |
|
2011 |
|
2010 |
| ||
|
SG&A as a % of revenue |
13.2 |
% |
15.5 |
% |
13.2 |
% |
15.5 |
% | ||
|
SG&A as a % of gross profit |
76.0 |
|
82.8 |
|
76.0 |
|
82.7 |
| ||
|
Operating profit as a % of revenue |
3.5 |
|
2.2 |
|
3.4 |
|
1.9 |
| ||
|
Operating profit as a % of gross profit |
20.0 |
|
11.7 |
|
19.6 |
|
10.0 |
| ||
|
Pretax margin |
2.5 |
|
0.8 |
|
2.5 |
|
0.5 |
| ||
Lithia Motors, Inc.
Same Store Operating Highlights (Unaudited)
(In thousands except per unit data)
|
|
|
|
|
|
|
| ||||||
|
|
Three Months Ended |
|
|
|
% |
| ||||||
|
|
March 31, |
|
Increase |
|
Increase |
| ||||||
|
|
2011 |
|
2010 |
|
(Decrease) |
|
(Decrease) |
| ||||
|
Revenues |
|
|
|
|
|
|
|
|
| |||
|
New vehicle retail |
$ 305,345 |
|
$ 215,981 |
|
$ 89,364 |
|
41.4 |
% |
| |||
|
Used vehicle retail |
157,130 |
|
134,402 |
|
22,728 |
|
16.9 |
|
| |||
|
Used vehicle wholesale |
29,929 |
|
22,880 |
|
7,049 |
|
30.8 |
|
| |||
|
Finance and insurance |
19,045 |
|
13,778 |
|
5,267 |
|
38.2 |
|
| |||
|
Service, body and parts |
74,467 |
|
68,728 |
|
5,739 |
|
8.3 |
|
| |||
|
|
|
|
|
|
|
|
|
|
| |||
|
Gross profit |
|
|
|
|
|
|
|
|
| |||
|
New vehicle retail |
22,730 |
|
18,390 |
|
4,340 |
|
23.6 |
|
| |||
|
Used vehicle retail |
22,826 |
|
18,220 |
|
4,606 |
|
25.3 |
|
| |||
|
Used vehicle wholesale |
420 |
|
397 |
|
23 |
|
5.8 |
|
| |||
|
Finance and insurance |
19,045 |
|
13,778 |
|
5,267 |
|
38.2 |
|
| |||
|
Service, body and parts |
35,049 |
|
32,584 |
|
2,465 |
|
7.6 |
|
| |||
|
|
|
|
|
|
|
|
|
| ||||
|
Unit sales |
|
|
|
|
|
|
|
| ||||
|
New vehicle retail |
9,708 |
|
6,897 |
|
2,811 |
|
40.8 |
% | ||||
|
Used vehicle retail |
9,598 |
|
8,109 |
|
1,489 |
|
18.4 |
| ||||
|
Used vehicle wholesale |
3,814 |
|
3,228 |
|
586 |
|
18.2 |
| ||||
|
Total units sold |
23,120 |
|
18,234 |
|
4,886 |
|
26.8 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
|
Average selling price |
|
|
|
|
|
|
|
| ||||
|
New vehicle retail |
$ 31,453 |
|
$ 31,315 |
|
$ 138 |
|
0.4 |
% | ||||
|
Used vehicle retail |
16,371 |
|
16,574 |
|
(203) |
|
(1.2) |
| ||||
|
Used vehicle wholesale |
7,847 |
|
7,088 |
|
759 |
|
10.7 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
|
Average gross profit per unit |
|
|
|
|
|
|
|
| ||||
|
New vehicle retail |
$ 2,341 |
|
$ 2,666 |
|
$ (325) |
|
(12.2) |
% | ||||
|
Used vehicle retail |
2,378 |
|
2,247 |
|
131 |
|
5.8 |
| ||||
|
Used vehicle wholesale |
110 |
|
123 |
|
(13) |
|
(10.6) |
| ||||
|
Finance & insurance |
986 |
|
918 |
|
68 |
|
7.4 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
| |||
Lithia Motors, Inc.
Revenue Mix (Unaudited)
|
|
Three months ended |
| |||
|
|
2011 |
|
2010 |
| |
|
New vehicle unit sales brand mix |
|
|
|
| |
|
Chrysler |
28.4 |
% |
26.0 |
% | |
|
General Motors |
16.9 |
|
16.2 |
| |
|
Toyota |
13.9 |
|
14.7 |
| |
|
Honda, Acura |
7.8 |
|
8.5 |
| |
|
Hyundai |
5.9 |
|
6.4 |
| |
|
Subaru |
5.8 |
|
5.9 |
| |
|
Ford |
5.6 |
|
5.5 |
| |
|
BMW |
4.6 |
|
5.6 |
| |
|
Nissan |
4.2 |
|
3.9 |
| |
|
Volkswagen, Audi |
3.2 |
|
3.3 |
| |
|
Kia |
1.9 |
|
2.1 |
| |
|
Mercedes |
0.9 |
|
1.1 |
| |
|
Other |
0.9 |
|
0.8 |
| |
|
|
| ||||
|
|
Three months ended |
| |||
|
Revenue geographic mix |
2011 |
|
2010 |
| |
|
Texas |
24.1 |
% |
25.3 |
% | |
|
Oregon |
16.0 |
|
14.8 |
| |
|
California |
11.1 |
|
11.8 |
| |
|
Washington |
10.3 |
|
10.4 |
| |
|
Alaska |
8.7 |
|
9.9 |
| |
|
Montana |
8.1 |
|
6.4 |
| |
|
Iowa |
6.7 |
|
6.9 |
| |
|
Idaho |
6.4 |
|
6.6 |
| |
|
Nevada |
4.7 |
|
4.2 |
| |
|
North Dakota |
2.0 |
|
1.9 |
| |
|
New Mexico |
1.0 |
|
1.0 |
| |
|
Colorado |
0.9 |
|
0.8 |
| |
|
|
As of April 27, 2011 |
| |||
|
Current store count mix |
# of stores |
|
% of total |
| |
|
Chrysler |
23 |
|
26.7 |
% | |
|
General Motors |
12 |
|
14.0 |
| |
|
Honda, Acura |
9 |
|
10.5 |
| |
|
Toyota |
8 |
|
9.3 |
| |
|
BMW |
7 |
|
8.2 |
| |
|
Hyundai |
6 |
|
7.0 |
| |
|
Ford |
4 |
|
4.6 |
| |
|
Volkswagen, Audi |
4 |
|
4.6 |
| |
|
Nissan |
4 |
|
4.6 |
| |
|
Mercedes |
3 |
|
3.5 |
| |
|
Subaru |
2 |
|
2.3 |
| |
|
Kia |
2 |
|
2.3 |
| |
|
Porsche |
1 |
|
1.2 |
| |
|
Mazda |
1 |
|
1.2 |
| |
Lithia Motors, Inc.
Consolidated Balance Sheet (Unaudited)
(In thousands except per share data)
|
|
March 31, 2011 |
|
December 31, 2010 |
|
Cash and cash equivalents |
$ 13,118 |
|
$ 9,306 |
|
Trade receivables, net |
79,659 |
|
75,011 |
|
Inventories, net |
456,945 |
|
415,228 |
|
Deferred income taxes |
2,815 |
|
2,937 |
|
Other current assets |
8,880 |
|
6,062 |
|
Total current assets |
$ 561,417 |
|
$ 508,544 |
|
|
|
|
|
|
Property and equipment, net |
357,303 |
|
362,433 |
|
Goodwill |
6,186 |
|
6,186 |
|
Franchise value |
45,193 |
|
45,193 |
|
Deferred income taxes |
39,479 |
|
39,524 |
|
Other non-current assets |
11,212 |
|
9,796 |
|
Total assets |
$ 1,020,790 |
|
$ 971,676 |
|
|
|
|
|
|
Floorplan notes payable |
$ 300,166 |
|
$ 251,257 |
|
Current maturities of long-term debt |
14,237 |
|
12,081 |
|
Trade payables |
27,043 |
|
23,747 |
|
Accrued liabilities |
68,502 |
|
58,784 |
|
Total current liabilities |
$ 409,948 |
|
$ 345,869 |
|
|
|
|
|
|
Long-term debt |
245,864 |
|
268,693 |
|
Deferred revenue |
21,064 |
|
20,158 |
|
Other long-term liabilities |
15,047 |
|
16,739 |
|
Total liabilities |
$ 691,923 |
|
$ 651,459 |
|
|
|
|
|
|
Class A common stock |
286,295 |
|
284,807 |
|
Class B common stock |
468 |
|
468 |
|
Additional paid-in capital |
10,183 |
|
10,972 |
|
Accumulated other comprehensive loss |
(4,307) |
|
(4,869) |
|
Retained earnings |
36,228 |
|
28,839 |
|
Total liabilities & stockholders' equity |
$ 1,020,790 |
|
$ 971,676 |
|
|
| ||
|
|
| ||
Lithia Motors, Inc.
Summarized Cash Flow from Operations (Unaudited)
(In thousands)
|
|
Three Months Ended |
| ||
|
|
March 31, |
| ||
|
|
2011 |
|
2010 |
|
|
Net income |
$ 8,705 |
|
$ 1,267 |
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to cash provided by (used in) operating activities: |
|
|
|
|
|
Asset impairments |
382 |
|
1,491 |
|
|
Depreciation and amortization |
4,193 |
|
4,749 |
|
|
Amortization of debt discount |
- |
|
4 |
|
|
Stock-based compensation |
491 |
|
441 |
|
|
(Gain) loss on disposal of assets |
105 |
|
(283) |
|
|
Deferred income taxes |
(394) |
|
(5,264) |
|
|
Excess tax benefit from share-based payment arrangements |
(21) |
|
- |
|
|
(Increase) decrease, net of effect of acquisitions and divestitures |
|
|
|
|
|
Trade receivables, net |
(4,648) |
|
(8,584) |
|
|
Inventories |
(41,769) |
|
(24,744) |
|
|
Other current assets |
(888) |
|
2,332 |
|
|
Other non-current assets |
(412) |
|
(987) |
|
|
Increase (decrease), net of effect of acquisitions and divestitures |
|
|
|
|
|
Floorplan notes payable |
9,905 |
|
4,532 |
|
|
Trade payables |
3,296 |
|
7,563 |
|
|
Accrued liabilities |
9,683 |
|
7,234 |
|
|
Other long-term liabilities and |
132 |
|
(160) |
|
|
Net cash used in operating activities |
$ (11,240) |
|
$ (10,409) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lithia Motors, Inc.
Reconciliation of Non-GAAP Cash Flow from Operations (Unaudited)
(In thousands)
|
|
Three Months Ended |
| ||
|
|
March 31, |
| ||
|
Net cash used in operating activities |
2011 |
|
2010 |
|
|
As reported |
$ (11,240) |
|
$ (10,409) |
|
|
Floorplan notes payable, non-trade |
39,262 |
|
20,615 |
|
|
Adjusted |
$ 28,022 |
|
$ 10,206 |
|
Lithia Motors, Inc.
Other Highlights (Unaudited)
(In thousands except per share data)
|
|
March 31, 2011 |
|
December |
|
March |
|
|
| |
|
Days Supply(1) |
|
|
|
|
|
|
|
| |
|
New vehicle inventory |
61 |
|
75 |
|
69 |
|
|
| |
|
Used vehicle inventory |
47 |
|
53 |
|
47 |
|
|
| |
|
(1) Days supply calculated based on current inventory levels, excluding in-transit vehicles, and a 30-day historical cost of sales level.
| |||||||||
|
|
|
|
|
|
|
|
|
| |
|
|
March 31, 2011 |
|
December |
|
|
|
|
| |
|
Other information |
|
|
|
|
|
|
|
| |
|
Long-term debt/total capitalization(2) |
42.8 |
% |
45.6 |
% |
|
|
|
| |
|
(2)Total capitalization is comprised of long-term debt and total shareholder’s equity.
| |||||||||
|
Debt covenant ratios |
|
|
|
|
|
|
|
| |
|
|
Requirement |
|
As of March 31, 2011 |
| |||||
|
Minimum tangible net worth |
Not less than $200 million |
|
$275.7 million |
| |||||
|
Vehicle equity |
Not less than $65 million |
|
$185.7 million |
| |||||
|
Fixed charge coverage ratio |
Not less than 1.20 to 1 |
|
1.83 to 1 |
| |||||
|
Liabilities to tangible net worth ratio |
Not more than 4.00 to 1 |
|
2.51 to 1 |
| |||||
Lithia Motors, Inc.
Reconciliation of Certain Non-GAAP Financial Measures (Unaudited)
(In thousands)
|
|
Three months ended |
| ||
|
|
2011 |
|
2010 |
|
|
Selling, general & administrative |
|
|
|
|
|
As reported |
$ 9,741 |
|
$ 71,039 |
|
|
Impairments and disposal gain |
- |
|
367 |
|
|
Reserve adjustments |
- |
|
(258) |
|
|
Adjusted |
$ 79,741 |
|
$ 71,148 |
|
|
|
|
|
|
|
|
Income from operations |
|
|
|
|
|
As reported |
$ 20,618 |
|
$ 8,626 |
|
|
Impairments and disposal gain |
382 |
|
1,190 |
|
|
Reserve adjustments |
- |
|
258 |
|
|
Adjusted |
$ 21,000 |
|
$ 10,074 |
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes |
|
|
|
|
|
As reported |
$ 14,828 |
|
$ 2,355 |
|
|
Impairments and disposal gain |
382 |
|
1,190 |
|
|
Reserve adjustments |
- |
|
258 |
|
|
Adjusted |
$ 15,210 |
|
$ 3,803 |
|
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 March 31, |
| |||||||
|
|
Net income/(loss) |
|
Diluted earnings per share |
| |||||
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| |
|
Continuing Operations |
|
|
|
|
|
|
|
| |
|
As reported |
$ 8,705 |
|
$ 1,443 |
|
$ 0.33 |
|
$ 0.06 |
| |
|
Impairments and disposal gain |
229 |
|
732 |
|
0.01 |
|
0.03 |
| |
|
Reserve adjustments Stock-based compensation tax shortfall |
-
186 |
|
164
- |
|
-
- |
|
-
- |
| |
|
Adjusted |
$ 9,120 |
|
$ 2,339 |
|
$ 0.34 |
|
$ 0.09 |
| |
|
|
|
|
|
|
|
|
|
| |
|
Discontinued Operations |
|
|
|
|
|
|
|
| |
|
As reported |
$ - |
|
$ (176) |
|
$ - |
|
$ (0.01) |
| |
|
Impairments and disposal (gain) |
- |
|
10 |
|
- |
|
- |
| |
|
Adjusted |
$ - |
|
$ (166) |
|
$ - |
|
$ (0.01) |
| |
|
|
|
|
|
|
|
|
|
| |
|
Consolidated Operations |
|
|
|
|
|
|
|
| |
|
As reported |
$ 8,705 |
|
$ 1,267 |
|
$ 0.33 |
|
$ 0.05 |
| |
|
Adjusted |
9,120 |
|
2,173 |
|
0.34 |
|
0.08 |
| |
|
|
|
|
|
|
|
|
|
| |