Lithia Motors Sells Three Colorado Stores
February 17 2009 - 8:00AM
Business Wire
Lithia Motors, Inc. (NYSE:LAD), has completed the sale of
its Lithia Centennial Chrysler Jeep, Lithia Chrysler Jeep Dodge
Fort Collins, and the small Lithia Hyundai of Fort Collins to local
Colorado dealer Doug Moreland.
The sale of the three stores represents the first group of
stores to sell in 2009 for Lithia Motors. Since announcing a
restructuring plan in June of 2008, Lithia has now divested
seventeen stores. In total, Lithia has selected twenty-nine stores
for divestiture, with twelve remaining to be divested. The Company
expects to achieve better diversification of brands, an improved
cash position, and stronger performance through disposition of the
selected stores.
�Our company�s progress on store divestitures, cost reductions,
cash generation and paydown of debt is making our company stronger
and leaner everyday. Net funds raised from the disposition of
stores, real estate financings, and sale-leasebacks was $100
million in 2008 � this does not include funds from construction
loan financing projects of $25 million. Net funds of $29 million
have been raised so far in 2009 � this does not include funds from
construction loan financing projects of $9.8 million. We continue
to see demand for our stores from private dealers,� said Sid
DeBoer, Chairman and CEO of Lithia Motors.
About Lithia
Lithia Motors, Inc., is a Fortune 700 Company who, as of the
last reporting date, sells 27 brands of new, and all brands of
used, vehicles at 98 stores, which are located in 42 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. Lithia retailed 105,108
new and used vehicles and had $3.2 billion in total revenue in
2007.
Additional
Information
For additional information on Lithia Motors, contact the
Investor Relations Department: 541-618-5770 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 our ability to manage through the
current sales and economic environment. Specific risks in
this press release include execution of the restructuring plan and
macro-economic and market factors, including market demand for
dealership sales.
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