Lithia Motors, Inc. (NYSE: LAD) today reported 2010 adjusted second
quarter net income from continuing operations of $0.27 per diluted
share. This compares to a 2009 adjusted second quarter net income
from continuing operations of $0.22 per diluted share. The results
include approximately 4.9 million additional shares in 2010
compared to 2009 primarily due to the equity offering at the end of
2009.
Second quarter 2010 revenue from continuing operations totaled
$534 million, compared to $444 million in the year-ago period,
mainly driven by improved vehicle sales. Total same store sales
increased 19% when compared to the same quarter last year. Same
store retail new vehicle sales increased 26% while same store
retail used vehicle sales increased 15% when compared to the same
quarter last year. Service, body and parts same store sales were
essentially flat compared to the same quarter of last year.
Sid DeBoer, Lithia's Chairman and CEO, commented, "Our
operational results exceeded our expectations due to a strong April
and May. We have focused on maintaining our service, body and parts
sales volumes despite fewer units in operation and lower warranty
revenues."
As shown in the attached reconciliation table, the 2010 second
quarter adjusted results exclude non-core charges of $(0.33) per
share on asset impairments and expenses related to reserves offset
by gains on disposal of assets, while the 2009 second quarter
adjusted results from continuing operations exclude non-core
charges of $(0.10) per share on asset impairments, offset by a
one-time gain related to debt extinguishment. Unadjusted, net loss
from continuing operations was $(1.5) million, or $(0.06) per
diluted share, for the quarter ended June 30, 2010, compared to net
income from continuing operations of $2.5 million, or $0.12 per
diluted share for the second quarter of 2009.
In the second quarter of 2010, Lithia recorded an after-tax
charge of approximately $(8.0) million, or $(0.31) per share
related to real estate held for future development, reflecting
continued weakness in local market conditions, increasing vacancy
rates, and challenges in obtaining lender financing. This real
estate incurs annual holding costs of approximately $0.12 to $0.15
per share.
Commenting on the impairment charges, Bryan DeBoer, Lithia's
President and COO, said, "Selling our remaining non-operating real
estate allows us to mitigate risk and re-deploy the capital
generated. We are acting aggressively to price these assets to sell
considering updated market conditions. While it is difficult to
sell these assets in the current environment, we believe that it is
an attractive time for other investment opportunities."
For the six-month period ended June 30, 2010, total revenues
increased 17% to $993 million as compared to $849 million in the
same period last year. Same store new vehicle sales increased 19%,
retail used vehicle sales increased 18% and service, body and parts
sales decreased 3%. For the first six months, Lithia's adjusted
income from continuing operations, net of tax, and excluding
non-core charges and gains was $0.37 per share as compared to $0.20
per share in 2009. Unadjusted, net loss from continuing operations
for the first six months was $(0.00) per diluted share, compared to
net income from continuing operations of $0.08 per diluted share
for the same period last year.
Selection of Chief Financial Officer
Lithia is pleased to announce that Chris Holzshu will be
promoted to Senior Vice President and Chief Financial Officer upon
the departure of Jeff DeBoer at the end of October. Chris has held
a number of positions with increasing responsibility at Lithia over
the past eight years, most recently as Vice President of Financial
Planning and Analysis.
Commenting on the selection, Sid DeBoer stated, "For the last
two years, Chris has been responsible for our budgeting and
performance monitoring. In this role, he has been focused on
identifying opportunities to improve store operations. I am pleased
that Chris will continue this focus as our new CFO. Our top
priority is improving store profitability, and Chris will deliver
on this objective."
Chris joined the Company in 2003 to manage the corporate
accounting department, and was subsequently promoted to leadership
roles in internal audit / compliance and business development.
Prior to Lithia, Chris spent several years working at KPMG LLP, an
independent public accounting firm. Chris is a licensed CPA.
Balance Sheet Update
Lithia ended the period with $118.2 million in immediately
available funds, including $15.4 million in cash, $71.2 million in
availability on its revolving credit facility, and $31.6 million in
unfinanced new vehicle inventory. At June 30, 2010, Lithia was in
compliance with all debt covenants. Lithia recently announced the
extension of its revolving credit facility through June 2013 and
has no mortgage maturities until November 2011.
Outlook for 2010
Lithia is providing 2010 third quarter earnings guidance within
a range of $0.27 to $0.29 per diluted share. Full-year 2010
adjusted earnings guidance has been increased for the effect of
announced acquisitions and dispositions and is projected within a
range of $0.72 to $0.77 per diluted share. Both projections are
based on the following revised assumptions:
- Total revenues in range of $1.95 to $2.0 billion
- New vehicle same store sales increasing 12.4%
- New vehicle gross margin ranging from 8.0% to 8.3%
- Used vehicle same store sales increasing 14.1%
- Used vehicle gross margin ranging from 14.2% to 14.5%
- Service body and parts same store sales decreasing 2.0%
- Service body and parts gross margin ranging from 48.1% to
48.7%
- Finance and insurance gross profit of $955 per unit
- Tax rate of 38.5%
- Estimated average diluted shares outstanding of 26.2
million
- Capital expenditures of approximately $3.5 million
- Chrysler market share consistent with full year 2009
levels
- Guidance excludes the impact of future acquisitions,
dispositions, and any potential non-core items
Second Quarter Earnings Conference Call and
Updated Presentation
The second quarter conference call may be accessed at 2:00 p.m.
PT today by telephone at (877) 407-8029 (Conference ID: 352738). An
updated presentation highlighting the second 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 July 29, 2010 through August 5, 2010 by calling 877-660-6853
(Conference ID: 352738 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 84 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) 776-6591 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/profile.php?id=1270221622&ref=ts
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 third quarter and full
year 2010 results, including the effect of announced acquisitions,
the timely sale of real estate held for future development, and our
belief we can find accretive diversifying acquisition
opportunities. 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 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.
Lithia Motors, Inc.
Consolidated Statement of Operations (Unaudited)
(In thousands except per share data)
Three Months Ended
June 30,
-------------------- Increase % Increase
2010 2009 (Decrease) (Decrease)
--------- --------- --------- ---------
Revenues:
New vehicle sales $ 268,721 $ 211,760 $ 56,961 26.9%
Used vehicle sales 172,406 144,007 28,399 19.7
Finance and insurance 16,274 14,857 1,417 9.5
Service, body and parts 71,996 72,312 (316) (0.4)
Fleet and other 4,704 625 4,079 652.6
--------- --------- --------- ---------
Total revenues 534,101 443,561 90,540 20.4
Cost of sales:
New vehicle sales 246,626 194,373 52,253 26.9
Used vehicle sales 150,858 125,633 25,225 20.1
Service, body and parts 36,617 36,999 (382) (1.0)
Fleet and other 4,257 267 3,990 1,494.4
--------- --------- --------- ---------
Total cost of sales 438,358 357,272 81,086 22.7
--------- --------- --------- ---------
Gross profit 95,743 86,289 9,454 11.0
Asset impairment charges 13,260 3,520 9,740 276.7
SG&A expense 74,813 68,854 5,959 8.7
Depreciation and amortization 4,402 3,969 433 10.9
--------- --------- --------- ---------
Income from operations 3,268 9,946 (6,678) (67.1)
Floorplan interest expense (2,567) (2,664) (97) (3.6)
Other interest expense (3,529) (3,367) 162 4.8
Other income, net 215 258 (43) (16.7)
--------- --------- --------- ---------
Income (loss) from continuing
operations before income taxes (2,613) 4,173 (6,786) NM
Income tax expense (benefit) (1,099) 1,634 (2,733) NM
Income tax rate 42.1% 39.2%
--------- --------- --------- ---------
Income (loss) from continuing
operations (1,514) 2,539 (4,053) NM
Income (loss) from discontinued
operations, net of income tax (205) 1,124 (1,329) NM
--------- --------- --------- ---------
Net income (loss) (1,719) 3,663 (5,382) NM
========= ========= ========= =========
Diluted net income (loss) per
share:
Continuing operations $ (0.06) $ 0.12 $ (0.18) NM
Discontinued operations (0.01) 0.05 (0.06) NM
--------- --------- --------- ---------
Net income (loss) per share $ (0.07) $ 0.17 $ (0.24) NM
========= ========= ========= =========
Diluted shares outstanding 26,014 21,096 4,918 23.3%
NM - not meaningful
Lithia Motors, Inc.
Key Performance Metrics (Unaudited)
Three Months Ended
June 30,
-------------------- Increase % Increase
2010 2009 (Decrease) (Decrease)
--------- --------- --------- ---------
Gross margin
New vehicle retail 8.2% 8.2% - bps
Used vehicle retail 14.5 14.5 - bps
Used vehicle wholesale 1.2 0.2 100 bps
Finance & insurance 100.0 100.0 - bps
Service, body & parts 49.1 48.8 30 bps
Gross profit margin 17.9 19.5 (160) bps
Unit sales
New vehicle retail 8,678 7,110 1,568 22.1%
Used vehicle retail 8,667 7,761 906 11.7
Used vehicle wholesale 3,305 3,107 198 6.4
Total units sold 20,650 17,978 2,672 14.9
Average selling price
New vehicle retail $ 30,966 $ 29,783 $ 1,183 4.0%
Used vehicle retail 16,942 16,268 674 4.1
Used vehicle wholesale 7,737 5,713 2,024 35.4
Average gross profit per unit
New vehicle retail $ 2,546 $ 2,445 $ 101 4.1%
Used vehicle retail 2,452 2,362 90 3.8
Used vehicle wholesale 91 14 77 550.0
Finance & insurance 938 999 (61) (6.1)
Revenue mix
New vehicle retail 50.3% 47.7%
Used vehicle retail 27.5 28.5
Used vehicle wholesale 4.8 4.1
Finance & insurance, net 3.0 3.3
Service, body & parts 13.5 16.3
Fleet and other 0.9 0.1
Adjusted As reported
-------------------- --------------------
Three Months Ended Three Months Ended
June 30, June 30,
-------------------- --------------------
Other metrics 2010 2009 2010 2009
--------- --------- --------- ---------
SG&A as a % of revenue 13.8% 15.5% 14.0% 15.5%
SG&A as a % of gross profit 77.0 79.8 78.1 79.8
Operating profit as a % of
revenue 3.3 3.1 0.6 2.2
Operating profit as a % of
gross profit 18.4 15.8 3.4 11.5
Pretax margin 2.2 1.7 (0.5) 0.9
Lithia Motors, Inc.
Key Performance Metrics (Unaudited)
Three Months Ended
June 30,
-----------------------
2010 2009
----------- ----------
New vehicle unit sales brand mix
Chrysler 28.8% 30.3%
General Motors 17.6 17.3
Toyota 12.8 14.2
Honda 8.9 9.3
Ford 5.7 4.9
Hyundai 5.6 4.6
BMW 5.4 5.1
Subaru 4.9 4.6
Volkswagen, Audi 3.5 3.2
Nissan 3.2 4.0
Kia 1.8 0.5
Mercedes 1.1 1.0
Other 0.7 1.0
Same store revenue changes
New vehicle retail 26.3% (35.9)%
Used vehicle retail 15.0 2.7
Used vehicle wholesale 42.1 (30.6)
Finance & insurance 15.2 (33.6)
Service, body & parts (0.2) (4.5)
Total sales (excluding fleet) 19.1 (23.2)
Same store gross profit changes
New vehicle retail 25.2% (32.0)%
Used vehicle retail 18.7 27.9
Used vehicle wholesale 259.5 (114.5)
Service, body & parts 0.4 (2.7)
Total gross profit (excluding fleet) 12.1 (11.7)
Current store count # of stores % of total
----------- ----------
Chrysler 23 27.4%
General Motors 12 14.3
Honda 8 9.5
Toyota 7 8.3
Hyundai 6 7.1
BMW 6 7.1
Ford 4 4.8
Volkswagen, Audi 4 4.8
Nissan 4 4.8
Subaru 2 2.4
Kia 2 2.4
Mercedes 1 1.2
Other 5 5.9
-----------
84
Lithia Motors, Inc.
Consolidated Statement of Operations (Unaudited)
(In thousands except per share data)
Six Months Ended
June 30,
-------------------- Increase % Increase
2010 2009 (Decrease) (Decrease)
--------- --------- --------- ---------
Revenues:
New vehicle sales $ 484,338 $ 404,066 $ 80,272 19.9%
Used vehicle sales 331,770 269,609 62,161 23.1
Finance and insurance 30,912 28,394 2,518 8.9
Service, body and parts 140,793 145,269 (4,476) (3.1)
Fleet and other 5,507 1,195 4,312 360.8
--------- --------- --------- ---------
Total revenues 993,320 848,533 144,787 17.1
Cost of sales:
New vehicle sales 443,839 369,979 73,860 20.0
Used vehicle sales 291,257 237,214 54,043 22.8
Service, body and parts 71,868 75,289 (3,421) (4.5)
Fleet and other 4,708 481 4,227 878.8
--------- --------- --------- ---------
Total cost of sales 811,672 682,963 128,709 18.8
--------- --------- --------- ---------
Gross profit 181,648 165,570 16,078 9.7
Asset impairment charges 14,751 5,197 9,554 183.8
SG&A expense 145,852 137,912 7,940 5.8
Depreciation and amortization 9,151 8,060 1,091 13.5
--------- --------- --------- ---------
Income from operations 11,894 14,401 (2,507) 17.4
Floorplan interest expense (5,318) (5,575) (257) (4.6)
Other interest expense (7,117) (7,348) (231) (3.1)
Other income, net 283 1,422 (1,139) (80.1)
--------- --------- --------- ---------
Income (loss) from continuing
operations before income taxes (258) 2,900 (3,158) NM
Income tax expense (benefit) (187) 1,145 (1,332) NM
Income tax rate 72.5% 39.5%
--------- --------- --------- ---------
Income (loss) from continuing
operations (71) 1,755 (1,826) NM
Income (loss) from discontinued
operations, net of income tax (381) 3,237 (3,618) NM
--------- --------- --------- ---------
Net income (loss) (452) 4,992 (5,444) NM
========= ========= ========= =========
Diluted net income (loss) per
share:
Continuing operations $ (0.00) $ 0.08 $ (0.08) NM
Discontinued operations (0.02) 0.16 (0.18) NM
--------- --------- --------- ---------
Net income (loss) per share $ (0.02) $ 0.24 $ (0.26) NM
========= ========= ========= =========
Diluted shares outstanding 25,955 20,960 4,995 23.8%
NM - not meaningful
Lithia Motors, Inc.
Key Performance Metrics (Unaudited)
Six Months Ended
June 30,
-------------------- Increase % Increase
2010 2009 (Decrease) (Decrease)
--------- --------- --------- ---------
Gross margin
New vehicle retail 8.4% 8.4% - bps
Used vehicle retail 14.1 13.6 50 bps
Used vehicle wholesale 1.4 1.2 20 bps
Finance & insurance 100.0 100.0 - bps
Service, body & parts 49.0 48.2 80 bps
Gross profit margin 18.3 19.5 (120) bps
Unit sales
New vehicle retail 15,562 13,501 2,061 15.3%
Used vehicle retail 16,878 14,879 1,999 13.4
Used vehicle wholesale 6,591 6,279 312 5.0
Total units sold 39,031 34,659 4,372 12.6
Average selling price
New vehicle retail $ 31,123 $ 29,929 $ 1,194 4.0%
Used vehicle retail 16,752 15,817 935 5.9
Used vehicle wholesale 7,440 5,457 1,983 36.3
Average gross profit per unit
New vehicle retail $ 2,602 $ 2,525 $ 77 3.0%
Used vehicle retail 2,361 2,150 211 9.8
Used vehicle wholesale 102 64 38 59.4
Finance & insurance 953 1,000 (47) (4.7)
Revenue mix
New vehicle retail 48.8% 47.6%
Used vehicle retail 28.5 27.7
Used vehicle wholesale 4.8 4.2
Finance & insurance, net 3.1 3.3
Service, body & parts 14.2 17.1
Fleet and other 0.6 0.1
Adjusted As reported
-------------------- --------------------
Six Months Ended Six Months Ended
June 30, June 30,
-------------------- --------------------
Other metrics 2010 2009 2010 2009
--------- --------- --------- ---------
SG&A as a % of revenue 14.5% 16.3% 14.7% 16.3%
SG&A as a % of gross profit 79.6 83.3 80.3 83.3
Operating profit as a % of
revenue 2.8 2.4 1.2 1.7
Operating profit as a % of
gross profit 15.2 12.1 6.5 8.7
Pretax margin 1.6 0.9 - 0.3
Lithia Motors, Inc.
Key Performance Metrics (Unaudited)
Six Months Ended
June 30,
-------------------
2010 2009
--------- --------
New vehicle unit sales brand mix
Chrysler 27.5% 32.5%
General Motors 17.0 16.5
Toyota 13.7 14.2
Honda 8.7 8.6
Hyundai 5.9 4.5
Ford 5.6 4.8
BMW 5.5 5.0
Subaru 5.4 4.6
Nissan 3.5 3.6
Volkswagen, Audi 3.4 3.2
Kia 1.9 -
Mercedes 1.1 1.0
Other 0.8 1.5
Same store revenue changes
New vehicle retail 19.3% (37.4)%
Used vehicle retail 18.3 (4.9)
Used vehicle wholesale 41.6 (40.1)
Finance & insurance 7.5 (33.1)
Service, body & parts (3.1) (4.8)
Total sales (excluding fleet) 15.7 (26.0)
Same store gross profit changes
New vehicle retail 17.7% (31.7)%
Used vehicle retail 29.0 8.0
Used vehicle wholesale 30.6 (148.6)
Service, body & parts (1.8) (3.1)
Total gross profit (excluding fleet) 9.7 (14.2)
Geographic revenue mix
Texas 24.7% 24.2%
Oregon 15.0 16.4
California 11.4 11.5
Alaska 10.8 9.6
Washington 10.0 9.9
Montana 6.8 6.9
Iowa 7.0 7.3
Idaho 6.4 6.6
Nevada 4.1 3.9
North Dakota 2.0 1.6
New Mexico 1.0 1.2
Colorado 0.8 0.9
Lithia Motors, Inc.
Consolidated Balance Sheet (Unaudited)
(In thousands except per share data)
June 30, December 31,
2010 2009
----------- -----------
Cash and cash equivalents $ 15,379 $ 12,776
Contracts in transit 25,373 21,940
Trade receivables, net 36,187 30,157
Inventory, net 361,063 328,726
Vehicles leased to others 7,940 7,384
Prepaid expenses and other 3,443 5,387
Assets held for sale - 11,693
----------- -----------
Total current assets $ 449,385 $ 418,063
Land and building, net 308,389 326,625
Equipment and other, net 54,868 59,429
Intangible assets, net 42,935 42,496
Other non-current assets 8,484 7,752
Deferred income taxes 45,231 40,735
----------- -----------
Total assets $ 909,292 $ 895,100
=========== ===========
Flooring notes payable 234,878 210,488
Current maturities of line of credit - 24,000
Current maturities of other debt 23,248 14,303
Trade payables 26,437 18,782
Accrued liabilities 50,540 47,518
Deferred income taxes 122 1,036
Liabilities related to assets held for sale - 5,050
----------- -----------
Total current liabilities $ 335,225 $ 321,177
Real estate debt 229,947 230,265
Other long-term debt 2,725 2,800
Deferred revenue 19,043 17,981
Other long-term liabilities 16,879 15,839
----------- -----------
Total liabilities $ 603,819 $ 588,062
----------- -----------
Class A common stock 282,764 280,880
Class B common stock 468 468
Additional paid-in capital 10,358 10,501
Other comprehensive income (5,404) (3,850)
Retained earnings 17,287 19,039
----------- -----------
Total liabilities & shareholders' equity $ 909,292 $ 895,100
=========== ===========
Lithia Motors, Inc.
Summarized Cash Flow from Operations (Unaudited)
(In thousands)
Six Months Ended
June 30,
------------------
2010 2009
-------- --------
Net income (loss) $ (452) $ 4,992
Adjustments to reconcile net income (loss) to cash
provided by (used in) operating activities:
Asset impairments 14,751 5,197
Depreciation and amortization 9,159 8,449
Amortization of debt discount - 48
Stock-based compensation 948 1,122
Gain on early extinguishment of debt - (1,317)
(Gain) loss on disposal of assets 93 (9,196)
Deferred income taxes (4,784) 2,208
Excess tax deficit from share-based payment arrangements - 46
(Increase) decrease, net of effect of acquisitions and
divestitures
Trade receivables, net (5,997) 8,631
Contracts in transit (3,433) 5,013
Inventories (28,996) 114,084
Vehicles leased to others (1,210) 737
Prepaid expenses and other 1,350 19,028
Other non-current assets (768) 523
Increase (decrease), net of effect of acquisitions and
divestitures
Floorplan notes payable 2,770 (94,523)
Trade payables 7,655 958
Accrued liabilities 2,106 (2,357)
Other long-term liabilities and deferred revenue 50 10,673
-------- --------
Net cash provided by (used in) operating activities $ (6,758) $ 74,316
Lithia Motors, Inc.
Reconciliation of Non-GAAP Cash Flow from Operations (Unaudited)
(In thousands)
Six Months Ended
June 30,
--------------------
Net cash provided by (used in) operating activities 2010 2009
--------- ---------
As reported $ (6,758) $ 74,316
Floorplan notes payable, non-trade 23,854 (25,502)
--------- ---------
Adjusted $ 17,096 $ 48,814
Lithia Motors, Inc.
Other Highlights (Unaudited)
(In thousands except per share data)
June 30, December 31,
2010 2009
------------ ------------
Other information
Lt debt/total cap 43.2% 43.2%
Adjusted Lt debt/total cap
(excludes mortgage financing) 0.9% 0.9%
Book value per outstanding
share $ 11.75 $ 11.90
Debt covenant ratios
As of June 30,
Requirement 2010
-------------------------- ---------------
Minimum tangible net worth Not less than $200 million $ 261.3 million
Vehicle equity Not less than $ 65 million $ 148.1 million
Fixed charge coverage ratio Not less than 1.15 to 1 1.52 to 1
Liabilities to tangible net
worth ratio Not more than 4.00 to 1 2.31 to 1
Lithia Motors, Inc.
Reconciliation of Certain Non-GAAP Financial Measures (Unaudited)
(In thousands)
Three months ended Six months ended
June 30, June 30,
-------------------- --------------------
2010 2009 2010 2009
--------- --------- --------- ---------
Selling, general &
administrative
As reported $ 74,813 $ 68,854 $ 145,852 $ 137,912
Disposal gain (loss) (2) - 365 -
Lease termination and
severance reserve (1,076) - (1,334) -
--------- --------- --------- ---------
Adjusted $ 73,735 $ 68,854 $ 144,883 $ 137,912
Income from operations
As reported $ 3,268 $ 9,946 $ 11,894 $ 14,401
Impairments and disposal gain 13,262 3,680 14,451 5,760
Lease termination and severance
reserve 1,076 - 1,334 -
--------- --------- --------- ---------
Adjusted $ 17,606 $ 13,626 $ 27,679 $ 20,161
Income (loss) from continuing
operations before income taxes
As reported $ (2,613) $ 4,173 $ (258) $ 2,900
Impairments and disposal gain 13,262 3,680 14,451 5,760
Lease termination and severance
reserve 1,076 - 1,334 -
Gain on extinguishment of debt - (231) - (1,317)
--------- --------- --------- ---------
Adjusted $ 11,725 $ 7,622 $ 15,527 $ 7,343
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 June 30,
Diluted earnings
Net income/(loss) per share
------------------ ------------------
2010 2009 2010 2009
-------- -------- -------- --------
Continuing Operations
As reported $ (1,514) $ 2,539 $ (0.06) $ 0.12
Impairments and disposal gain 8,046 2,057 0.31 0.10
Lease termination and severance
reserve 561 - 0.02 -
Gain on extinguishment of debt - (38) - -
-------- -------- -------- --------
Adjusted $ 7,093 $ 4,558 $ 0.27 $ 0.22
Discontinued Operations
As reported $ (205) $ 1,124 $ (0.01) $ 0.05
Impairments and disposal (gain)
loss 163 (1,869) 0.01 (0.09)
-------- -------- -------- --------
Adjusted $ (42) $ (745) - (0.04)
Consolidated Operations
As reported $ (1,719) $ 3,663 $ (0.07) $ 0.17
Adjusted 7,051 3,813 0.27 0.18
Six Months Ended June 30,
Diluted earnings
Net income/(loss) per share
------------------ ------------------
2010 2009 2010 2009
-------- -------- -------- --------
Continuing Operations
As reported $ (71) $ 1,755 - $ 0.08
Impairments and disposal gain 8,777 3,431 0.34 0.16
Lease termination and severance
reserve 725 - 0.03 -
Gain on extinguishment of debt - (812) - (0.04)
-------- -------- -------- --------
Adjusted $ 9,431 $ 4,374 $ 0.37 $ 0.20
Discontinued Operations
As reported $ (381) $ 3,237 $ (0.02) $ 0.16
Impairments and disposal (gain)
loss 173 (5,421) 0.01 (0.26)
-------- -------- -------- --------
Adjusted $ (208) $ (2,184) $ (0.01) (0.10)
Consolidated Operations
As reported $ (452) $ 4,992 $ (0.02) $ 0.24
Adjusted 9,223 2,190 0.36 0.10
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