MEDFORD, OR--(Marketwire - Feb 20, 2013) - Lithia Motors, Inc. (NYSE: LAD) today reported the highest fourth quarter adjusted net income in Company history, and increased earnings 52% for the fourth quarter 2012 over the prior year period.
2012 fourth quarter adjusted income from continuing operations was $19.3 million, or $0.74 per diluted share. This compares to a 2011 fourth quarter adjusted income from continuing operations of $12.7 million, or $0.48 per diluted share.
Unadjusted net income from continuing operations for the fourth quarter of 2012 was $19.7 million or $0.76 per diluted share, compared to $16.0 million or $0.61 per diluted share for 2011. As shown in the attached non-GAAP reconciliation tables, the 2012 fourth quarter adjusted income from continuing operations is reduced to exclude a benefit of $0.02 per share for a non-core tax attribute. The 2011 fourth quarter adjusted results from continuing operations exclude a benefit of $0.15 per share gain on the sale of real estate offset by a non-core reserve adjustment charge of $0.02 per share.
Fourth Quarter-over-Quarter Operating Highlights:
- New vehicle same store sales increased 31%
- Used vehicle retail same store sales increased 20%
- Service, body and parts same store sales increased 8%
- SG&A expense as a percentage of gross profit was 70%
Fourth quarter 2012 revenue from continuing operations increased $182.0 million, or 26%, to $877.4 million from $695.4 million in the fourth quarter of 2011.
Full Year-over-Year Operating Highlights:
- New vehicle same store sales increased 30%
- Used vehicle retail same store sales increased 21%
- Service, body and parts same store sales increased 7%
- Adjusted SG&A expense as a percentage of gross profit was 69%
For the full year of 2012, revenue from continuing operations increased 26% to $3.3 billion from $2.6 billion in 2011.
"We grew total same store revenue 23% in 2012," said Bryan DeBoer, President and CEO. "This is on top of total same store revenue increases of 22% in 2011 and 18% in 2010. Most automotive analysts believe a multi-year recovery in auto sales remains ahead of us, and many of the western markets we do business in are still significantly below peak registration levels experienced in 2005 and 2006. Our store leaders continue to challenge their teams and remain driven to improve store performance in 2013 and beyond."
For the full year of 2012, adjusted net income from continuing operations increased 52% to $2.96 per diluted share compared to $1.95 per diluted share for the full year 2011. Unadjusted, for the full year of 2012, net income from continuing operations was $3.03 per diluted share, compared to $2.07 per diluted share for the full year of 2011.
Chris Holzshu, SVP and CFO, said, "We finished 2012 with full year adjusted SG&A expense as a percentage of gross profit of 69.4%. This is a record result and finishing below 70% is a milestone we have been pursuing for the past two years. For the full year, incremental throughput, or the percentage of additional same store gross profit dollars that we retain after deducting selling costs, was 51%. Our stores remain focused on maintaining incremental throughput above 50%, which will reduce our SG&A expense as a percentage of gross profit in 2013. We believe SG&A expense as a percentage of gross profit can be in the high 60 percent range with improved sales."
Corporate Development
For the full year 2012, we purchased four stores and were granted two new stores, contributing estimated annualized revenues of $260 million.
Bryan DeBoer, President and CEO, stated, "We continue to emphasize acquisitions as one of the long term drivers of growth for Lithia. We remain focused on increasing our store count through acquisitions in 2013, and believe that compelling opportunities currently exist in the marketplace."
Balance Sheet Update
We ended the fourth quarter with $43 million in cash and $120 million in available credit on our credit facilities. Additionally, approximately $102 million of operating real estate is currently unfinanced, which could provide up to an additional $77 million in available liquidity, for total liquidity of $240 million.
During the fourth quarter, we increased the capacity on our syndicated credit facility by $150 million to $800 million in total availability. The facility allocates $575 million to new vehicle floorplan financing, $80 million to used vehicle floorplan financing, and $145 million to our revolving line of credit, and matures in April 2017.
Dividend Payment
As previously announced, we declared and paid a dividend of $0.10 per share in December 2012 for the fourth quarter of 2012. The dividend was in lieu of the dividend typically declared and paid each year in March.
Increased Outlook for 2013
We project 2013 first quarter earnings of $0.69 to $0.71 per diluted share and full-year 2013 earnings of $3.25 to $3.35 per diluted share. Both projections are based on the following annual assumptions:
- Total revenues of $3.7 to $3.8 billion
- New vehicle same store sales increasing 11.5%
- New vehicle gross margin of 7.1% to 7.3%
- Used vehicle same store sales increasing 9.0%
- Used vehicle gross margin of 14.3% to 14.5%
- Service body and parts same store sales increasing 5.0%
- Service body and parts gross margin of 48.0% to 48.2%
- Finance and insurance gross profit of $1,100 per unit
- Tax rate of 39.5%
- Average diluted shares outstanding of 26.5 million
- Capital expenditures of $55 million
- Guidance excludes the impact of future acquisitions, dispositions, and any potential non-core items
Fourth Quarter Earnings Conference Call and Updated Presentation
The fourth quarter conference call may be accessed at 10:00 a.m. ET today by telephone at 877-407-8029. An updated presentation highlighting the fourth 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 on February 22, 2013 through March 6, 2013 by calling 877-660-6853 (Conference ID: 401506).
About Lithia
Lithia Motors, Inc. is the ninth largest automotive retailer in the United States. Lithia sells 27 brands of new vehicles and all brands of used vehicles at 87 stores in 11 states. Lithia also arranges finance, warranty, and credit insurance contracts; and provides vehicle parts, maintenance, and repair services at all of its locations.
Sites
www.lithia.com
www.lithiacareers.com
www.assuredservice.com
Lithia Motors on Facebook
http://www.facebook.com/LithiaMotors
Lithia Motors on Twitter
http://twitter.com/lithiamotors
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. 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," "estimates," "may," "seeks," "would," "should," "likely," or "will" and similar references to future periods. Examples of forward-looking statements in this press release include, among others, (1) statements regarding our belief about whether there will be a multi-year recovery in auto sales and (2) statements regarding our future SG&A expense as a percentage of gross profit.
By their nature, forward-looking statements involve risks and uncertainties because they relate to events that depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance, and our actual results of operations, financial condition and liquidity and development of the industries in which we operate may differ materially from those made in or suggested by the forward-looking statements in this press release. The risks and uncertainties that could cause actual results to differ materially from estimated or projected results include without limitation, future economic and financial conditions (both nationally and locally), changes in customer demand, our relationship with, and the financial and operational stability of, vehicle manufacturers and other suppliers, risks associated with our indebtedness (including available borrowing capacity, compliance with financial covenants and ability to refinance or repay indebtedness on favorable terms), government regulations, legislation and others set forth from time to time in our filings with the SEC. We urge you to carefully consider this information and not place undue reliance on forward-looking statements. We undertake no duty to update our forward-looking statements, including our earnings outlook, which are made as of the date of this release.
Non-GAAP Financial Measures
This press release and the attached financial tables contain non-GAAP financial measures 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. Non-GAAP measures do not have definitions under GAAP and may be defined differently by and not comparable to similarly titled measures used by other companies. As a result, we review any non-GAAP financial measures in connection with a review of the most directly comparable measures calculated in accordance with GAAP. We caution you not to place undue reliance on such non-GAAP measures, but also to consider them with the most directly comparable GAAP measures. We present cash flows from operations in the attached tables, adjusted to include the change in non-trade floor plan debt to improve the visibility of cash flows related to vehicle financing. As required by SEC rules, we have reconciled these measures to the most directly comparable GAAP measures in the attachments to this release. We believe the non-GAAP financial measures we present improve the transparency of our disclosures; provide a meaningful presentation of our results from core business operations, because they exclude items not related to core business operations and other non-cash items; and improve the period-to-period comparability of our results from core business operations. These presentations should not be considered an alternative to GAAP measures.
| |
|
| Lithia Motors, Inc. |
|
| Consolidated Statements of Operations |
|
| (Unaudited) |
|
| (In thousands except per share data) |
|
| |
|
| |
|
Three months ended |
|
|
|
|
|
% |
|
| |
|
December 31, |
|
|
Increase |
|
|
Increase |
|
| |
|
2012 |
|
|
2011 |
|
|
(Decrease) |
|
|
(Decrease) |
|
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| New vehicle retail |
|
$ |
506,871 |
|
|
$ |
382,004 |
|
|
$ |
124,867 |
|
|
32.7 |
% |
| Used vehicle retail |
|
|
208,367 |
|
|
|
170,053 |
|
|
|
38,314 |
|
|
22.5 |
|
| Used vehicle wholesale |
|
|
35,768 |
|
|
|
34,862 |
|
|
|
906 |
|
|
2.6 |
|
| Finance and insurance |
|
|
29,244 |
|
|
|
22,397 |
|
|
|
6,847 |
|
| 30.6 |
|
| Service, body and parts |
|
|
89,665 |
|
|
|
82,053 |
|
|
|
7,612 |
|
|
9.3 |
|
| Fleet and other |
|
|
7,458 |
|
|
|
3,979 |
|
|
|
3,479 |
|
|
87.4 |
|
| |
Total revenues |
|
|
877,373 |
|
|
|
695,348 |
|
|
|
182,025 |
|
|
26.2 |
|
| Cost of sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| New vehicle retail |
|
|
471,336 |
|
|
|
353,207 |
|
|
|
118,129 |
|
|
33.4 |
|
| Used vehicle retail |
|
|
179,186 |
|
|
|
147,227 |
|
|
|
31,959 |
|
|
21.7 |
|
| Used vehicle wholesale |
|
|
35,010 |
|
|
|
34,872 |
|
|
|
138 |
|
|
0.4 |
|
| Service, body and parts |
|
|
46,410 |
|
|
|
43,652 |
|
|
|
2,758 |
|
|
6.3 |
|
| Fleet and other |
|
|
7,071 |
|
|
|
3,538 |
|
|
|
3,533 |
|
|
99.9 |
|
| |
Total cost of sales |
|
|
739,013 |
|
|
|
582,496 |
|
|
|
156,517 |
|
|
26.9 |
|
| Gross profit |
|
|
138,360 |
|
|
|
112,852 |
|
|
|
25,508 |
|
|
22.6 |
|
| Asset Impairments |
|
|
- |
|
|
|
504 |
|
|
|
(504 |
) |
|
NM |
|
| SG&A expense |
|
|
97,126 |
|
|
|
78,331 |
|
|
|
18,795 |
|
|
24.0 |
|
| Depreciation and amortization |
|
|
4,441 |
|
|
|
4,095 |
|
|
|
346 |
|
|
8.4 |
|
| Income from operations |
|
|
36,793 |
|
|
|
29,922 |
|
|
|
6,871 |
|
|
23.0 |
|
| Floor plan interest expense |
|
|
(3,490 |
) |
|
|
(2,706 |
) | |
|
784 |
|
|
29.0 |
|
| Other interest expense |
|
|
(2,239 |
) |
|
|
(3,532 |
) |
|
|
(1,293 |
) |
|
(36.6 |
) |
| Other income, net |
|
|
754 |
|
|
|
233 |
|
|
|
521 |
|
|
223.6 |
|
| Income from continuing operations before income taxes |
|
|
31,818 |
|
|
|
23,917 |
|
|
|
7,901 |
|
|
33.0 |
|
| Income tax expense |
|
|
(12,154 |
) |
|
|
(7,896 |
) |
|
|
4,258 |
|
|
53.9 |
|
| Income tax rate |
|
|
38.2 |
% |
|
|
33.0 |
% |
|
|
|
|
|
|
|
| Income from continuing operations |
|
$ |
19,664 |
|
|
$ |
16,021 |
|
|
$ |
3,643 |
|
|
22.7 |
% |
| Income from discontinued operations, net of tax |
|
|
169 |
|
|
|
2,745 |
|
|
|
(2,576 |
) |
|
(93.8 |
) |
| Net income |
| $ |
19,833 |
|
|
$ |
18,766 |
|
|
$ |
1,067 |
|
|
5.7 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Continuing operations |
|
$ |
0.76 |
|
|
$ |
0.61 |
|
|
$ |
0.15 |
|
|
24.6 |
% |
| Discontinued operations |
|
|
- |
|
|
|
0.10 |
|
|
|
(0.10 |
) |
|
NM |
|
| Net income per share |
|
$ |
0.76 |
|
|
$ |
0.71 |
|
|
$ |
0.05 |
|
|
7.0 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted shares outstanding |
|
|
26,068 |
|
|
|
26,442 |
|
|
|
(374 |
) |
|
(1.4 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Lithia Motors, Inc. |
|
| Key Performance Metrics |
|
| (Unaudited) |
|
| |
|
| |
|
Three months ended |
|
|
|
|
|
% |
|
| |
|
December 31, |
|
|
Increase |
|
|
Increase |
|
| |
|
2012 |
|
|
2011 |
|
|
(Decrease) |
|
|
(Decrease) |
|
| Gross margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| New vehicle retail |
|
|
7.0 |
% |
|
|
7.5 |
% |
|
|
(50) bps |
|
|
|
|
| Used vehicle retail |
|
|
14.0 |
|
|
|
13.4 |
|
|
|
60 bps |
|
|
|
|
| Used vehicle wholesale |
|
|
2.1 |
|
|
|
0.0 |
|
|
|
210 bps |
|
| |
|
| Finance and insurance |
|
|
100.0 |
|
|
|
100.0 |
|
|
|
- bps |
|
|
|
|
| Service, body and parts |
|
|
48.2 |
|
|
|
46.8 |
|
|
|
140 bps |
|
|
|
|
| Fleet and Other |
|
|
5.2 |
|
|
|
11.1 |
|
|
|
(590) bps |
|
|
|
|
| Gross profit margin |
|
|
15.8 |
|
|
|
16.2 |
|
|
|
(40) bps |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unit sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| New vehicle retail |
|
|
14,713 |
|
|
|
11,161 |
|
|
|
3,552 |
|
|
31.8 |
% |
| Used vehicle retail |
|
|
11,943 |
|
|
|
9,810 |
|
|
|
2,133 |
|
|
21.7 |
|
| Used vehicle wholesale |
|
|
5,009 | |
|
|
4,270 |
|
|
|
739 |
|
|
17.3 |
|
| Total units sold |
|
|
31,665 |
|
|
|
25,241 |
|
|
|
6,424 |
|
|
25.5 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average selling price |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| New vehicle retail |
|
$ |
34,451 |
|
|
$ |
34,227 |
|
|
$ |
224 |
|
|
0.7 |
% |
| Used vehicle retail |
|
|
17,447 |
|
|
|
17,335 |
|
|
|
112 |
|
|
0.6 |
|
| Used vehicle wholesale |
|
|
7,141 |
|
|
|
8,164 |
|
|
|
(1,023 |
) |
|
(12.5 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average gross profit per unit |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| New vehicle retail |
|
$ |
2,415 |
|
|
$ |
2,580 |
|
|
$ |
(165 |
) |
|
(6.4 |
)% |
| Used vehicle retail |
|
|
2,443 |
|
|
|
2,327 |
|
|
|
116 |
|
|
5.0 |
|
| Used vehicle wholesale |
|
|
151 |
|
|
|
(2 |
) |
|
|
153 |
|
|
NM |
|
| Finance and insurance |
|
|
1,097 |
|
|
|
1,068 |
|
|
|
29 |
|
|
2.7 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue mix |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| New vehicle retail |
|
|
57.8 |
% |
|
|
54.9 |
% |
|
|
|
|
|
|
|
| Used vehicle retail |
|
|
23.7 |
|
|
|
24.5 |
|
|
|
|
|
|
|
|
| Used vehicle wholesale |
|
|
4.1 |
|
|
|
5.0 |
|
|
|
|
|
|
|
|
| Finance and insurance, net |
|
|
3.3 |
|
|
|
3.2 |
|
|
|
|
|
|
|
|
| Service, body and parts |
|
|
10.2 |
|
|
|
11.8 |
|
|
|
|
|
|
|
|
| Fleet and other |
|
|
0.9 |
|
|
|
0.6 |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
Adjusted |
|
|
As reported |
|
| |
|
Three months ended
December 31, |
|
|
Three months ended
December 31, |
|
| Other metrics |
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
| SG&A as a % of revenue |
|
11.1 |
% |
|
12.2 |
% |
|
11.1 |
% |
|
11.3 |
% |
| SG&A as a % of gross profit |
|
70.2 |
|
|
74.4 |
|
|
70.2 |
|
|
69.4 |
|
| Operating profit as a % of revenue |
|
4.2 |
|
|
3.6 |
|
|
4.2 |
|
|
4.3 |
|
| Operating profit as a % of gross profit |
|
26.6 |
|
|
22.0 |
|
|
26.6 |
|
|
26.5 |
|
| Pretax margin |
|
3.6 |
|
|
2.7 |
|
|
3.6 |
|
|
3.4 |
|
| Net profit margin |
|
2.2 |
|
|
1.8 |
|
|
2.2 |
|
|
2.3 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| NM - not meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Lithia Motors, Inc. |
|
| Same Store Operating Highlights |
|
| (Unaudited) |
|
| |
|
| |
|
Three months ended |
|
|
|
|
|
% |
|
| |
|
December 31, |
|
|
Increase |
|
|
Increase |
|
| |
| 2012 |
|
2011 |
|
|
(Decrease) |
|
|
(Decrease) |
|
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| New vehicle retail |
|
$ |
489,968 |
|
$ |
374,573 |
|
|
$ |
115,395 |
|
|
30.8 |
% |
| Used vehicle retail |
|
|
200,409 |
|
|
166,889 |
|
|
|
33,520 |
|
|
20.1 |
|
| Used vehicle wholesale |
|
|
33,191 |
|
|
32,653 |
|
|
|
538 |
|
|
1.6 |
|
| Finance and insurance |
|
|
28,360 |
|
|
21,703 |
|
|
|
6,657 |
|
|
30.7 |
|
| Service, body and parts |
|
|
87,088 |
|
|
80,557 |
|
|
|
6,531 |
|
|
8.1 |
|
| Fleet and other |
|
|
7,260 |
|
|
3,544 |
|
|
|
3,716 |
|
|
104.9 |
|
| Total revenues |
|
$ |
846,276 |
|
$ |
679,919 |
|
|
$ |
166,357 |
|
|
24.5 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| New vehicle retail |
|
$ |
34,107 |
|
$ |
28,178 |
|
|
$ |
5,929 |
|
|
21.0 |
% |
| Used vehicle retail |
|
|
28,300 |
|
|
22,440 |
|
|
|
5,860 |
|
|
26.1 |
|
| Used vehicle wholesale |
|
|
685 |
|
|
38 |
|
|
|
647 |
|
|
NM |
|
| Finance and insurance |
|
|
28,360 |
|
|
21,703 |
|
|
|
6,657 |
|
|
30.7 |
|
| Service, body and parts |
|
|
41,255 |
|
|
37,777 |
|
|
|
3,478 |
|
|
9.2 |
|
| Fleet and other |
|
|
240 |
|
|
(120 |
) |
|
|
360 |
|
|
NM |
|
| Total gross profit |
|
$ |
132,947 |
|
$ |
110,016 |
|
|
$ |
22,931 |
|
| 20.8 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unit sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| New vehicle retail |
|
|
14,216 |
|
|
10,933 |
|
|
|
3,283 |
|
|
30.0 |
% |
| Used vehicle retail |
|
|
11,482 |
|
|
9,613 |
|
|
|
1,869 |
|
|
19.4 |
|
| Used vehicle wholesale |
|
|
4,744 |
|
|
4,076 |
|
|
|
668 |
|
|
16.4 |
|
| Total units sold |
|
|
30,442 |
|
|
24,622 |
|
|
|
5,820 |
|
|
23.6 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average selling price |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| New vehicle retail |
|
$ |
34,466 |
|
$ |
34,261 |
|
|
$ |
205 |
| |
0.6 |
% |
| Used vehicle retail |
|
|
17,454 |
|
|
17,361 |
|
|
|
93 |
|
|
0.5 |
|
| Used vehicle wholesale |
|
|
6,996 |
|
|
8,011 |
|
|
|
(1,015 |
) |
|
(12.7 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average gross profit per unit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| New vehicle retail |
|
$ |
2,399 |
|
$ |
2,577 |
|
|
$ |
(178 |
) |
|
(6.9 |
)% |
| Used vehicle retail |
|
|
2,465 |
|
|
2,334 |
|
|
|
131 |
|
|
5.6 |
|
| Used vehicle wholesale |
|
|
144 |
|
|
9 |
|
|
|
135 |
|
|
NM |
|
| Finance and insurance |
|
|
1,104 |
|
|
1,056 |
|
|
|
48 |
|
|
4.5 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
| Lithia Motors, Inc. |
|
| Consolidated Statements of Operations |
|
| (Unaudited) |
|
| (In thousands except per share data) |
|
| |
|
| |
|
Twelve months ended |
|
|
|
|
|
% |
|
| |
|
December 31, |
|
|
Increase |
|
|
Increase |
|
| |
|
2012 |
|
|
2011 |
|
|
(Decrease) |
|
|
(Decrease) |
|
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| New vehicle retail |
|
$ |
1,847,603 |
|
|
$ |
1,391,375 |
|
|
$ |
456,228 |
|
|
32.8 |
% |
| Used vehicle retail |
|
|
833,484 |
|
|
|
678,571 |
|
|
|
154,913 |
|
|
22.8 |
|
| Used vehicle wholesale |
|
|
139,237 |
|
|
|
128,329 |
|
|
|
10,908 |
|
|
8.5 |
|
| Finance and insurance |
|
|
112,234 |
|
|
|
84,130 | |
|
|
28,104 |
|
|
33.4 |
|
| Service, body and parts |
|
|
347,703 |
|
|
|
315,958 |
|
|
|
31,745 |
|
|
10.0 |
|
| Fleet and other |
|
|
36,226 |
|
|
|
34,383 |
|
|
|
1,843 |
|
|
5.4 |
|
| |
Total revenues |
|
|
3,316,487 |
|
|
|
2,632,746 |
|
|
|
683,741 |
|
|
26.0 |
|
| Cost of sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| New vehicle retail |
|
|
1,713,156 |
|
|
|
1,284,225 |
|
|
|
428,931 |
|
|
33.4 |
|
| Used vehicle retail |
|
|
711,763 |
|
|
|
580,357 |
|
|
|
131,406 |
|
|
22.6 |
|
| Used vehicle wholesale |
|
|
137,823 |
|
|
|
127,732 |
|
|
|
10,091 |
|
|
7.9 |
|
| Service, body and parts |
|
|
179,633 |
|
|
|
163,738 |
| |
|
15,895 |
|
|
9.7 |
|
| Fleet and other |
|
|
34,812 |
|
|
|
31,410 |
|
|
|
3,402 |
|
|
10.8 |
|
| |
Total cost of sales |
|
|
2,777,187 |
|
|
|
2,187,462 |
|
|
|
589,725 |
|
|
27.0 |
|
| Gross profit |
|
|
539,300 |
|
|
|
445,284 |
|
|
|
94,016 |
|
|
21.1 |
|
| Asset impairments |
|
|
115 |
|
|
|
1,376 |
|
|
|
(1,261 |
) |
|
(91.6 |
) |
| SG&A expense |
|
|
373,688 |
|
|
|
316,663 |
|
|
|
57,025 |
|
|
18.0 |
|
| Depreciation and amortization |
|
|
17,128 |
|
|
|
16,427 |
|
|
|
701 |
|
|
4.3 |
|
| Income from operations |
|
|
148,369 |
|
|
|
110,818 |
|
|
|
37,551 |
|
|
33.9 |
|
| Floor plan interest expense |
| |
(12,816 |
) |
|
|
(10,364 |
) |
|
|
2,452 |
|
|
23.7 |
|
| Other interest expense |
|
|
(9,621 |
) |
|
|
(12,878 |
) |
|
|
(3,257 |
) |
|
(25.3 |
) |
| Other income, net |
|
|
2,525 |
|
|
|
694 |
|
|
|
1,831 |
|
|
263.8 |
|
| Income from continuing operations before income taxes |
|
|
128,457 |
|
|
|
88,270 |
|
|
|
40,187 |
|
|
45.5 |
|
| Income tax expense |
|
|
(49,062 |
) |
|
|
(33,060 |
) |
|
|
16,002 |
|
|
48.4 |
|
| Income tax rate |
|
|
38.2 |
% |
|
|
37.5 |
% |
|
|
|
|
|
|
|
| Income from continuing operations |
|
$ |
79,395 |
|
|
$ |
55,210 |
|
|
$ |
24,185 |
|
|
43.8 |
% |
| Income from discontinued operations, net of tax |
|
|
967 |
|
|
|
3,650 |
|
|
|
(2,683 | ) |
|
(73.5 |
) |
| Net income |
|
$ |
80,362 |
|
|
$ |
58,860 |
|
|
$ |
21,502 |
|
|
36.5 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Continuing operations |
|
$ |
3.03 |
|
|
$ |
2.07 |
|
|
$ |
0.96 |
|
|
46.4 |
% |
| Discontinued operations |
|
|
0.04 |
|
|
|
0.14 |
|
|
|
(0.10 |
) |
|
(71.4 |
) |
| Net income per share |
|
$ |
3.07 |
|
|
$ |
2.21 |
|
|
$ |
0.86 |
|
|
38.9 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted shares outstanding |
|
|
26,170 |
|
|
|
26,664 |
| |
|
(494 |
) |
|
(1.9 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Lithia Motors, Inc. |
|
| Key Performance Metrics |
|
| (Unaudited) |
|
| |
|
| |
|
Twelve months ended |
|
|
|
|
|
% |
|
| |
|
December 31, |
|
|
Increase |
|
|
Increase |
|
| |
|
2012 |
|
|
2011 |
|
|
(Decrease) |
|
|
(Decrease) |
|
| Gross margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| New vehicle retail |
|
|
7.3 |
% |
|
|
7.7 |
% |
|
|
(40) bps |
|
|
|
|
| Used vehicle retail |
|
|
14.6 |
|
|
|
14.5 |
|
|
|
10 bps |
|
|
|
|
| Used vehicle wholesale |
|
|
1.0 |
|
|
|
0.5 |
|
|
|
50 bps | |
|
|
|
| Finance and insurance |
|
|
100.0 |
|
|
|
100.0 |
|
|
|
- bps |
|
|
|
|
| Service, body and parts |
|
|
48.3 |
|
|
|
48.2 |
|
|
|
10 bps |
|
|
|
|
| Fleet and Other |
|
|
3.9 |
|
|
|
8.6 |
|
|
|
(470) bps |
|
|
|
|
| Gross profit margin |
|
|
16.3 |
|
|
|
16.9 |
|
|
|
(60) bps |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unit sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| New vehicle retail |
|
|
55,666 |
|
|
|
42,139 |
|
|
|
13,527 |
|
|
32.1 |
% |
| Used vehicle retail |
|
|
47,965 |
|
|
|
39,436 |
|
|
|
8,529 |
|
|
21.6 |
|
| Used vehicle wholesale |
| |
19,144 |
|
|
|
16,085 |
|
|
|
3,059 |
|
|
19.0 |
|
| Total units sold |
|
|
122,775 |
|
|
|
97,660 |
|
|
|
25,115 |
|
|
25.7 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average selling price |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| New vehicle retail |
|
$ |
33,191 |
|
|
$ |
33,019 |
|
|
$ |
172 |
|
|
0.5 |
% |
| Used vehicle retail |
|
|
17,377 |
|
|
|
17,207 |
|
|
|
170 |
|
|
1.0 |
|
| Used vehicle wholesale |
|
|
7,273 |
|
|
|
7,978 |
|
|
|
(705 |
) |
|
(8.8 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average gross profit per unit |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| New vehicle retail |
|
$ |
2,415 |
|
|
$ |
2,543 |
|
|
$ |
(128 |
) |
|
(5.0 |
)% |
| Used vehicle retail |
|
|
2,538 |
|
|
|
2,490 |
|
|
|
48 |
|
|
1.9 |
|
| Used vehicle wholesale |
|
|
74 |
|
|
|
37 |
|
|
|
37 |
|
|
100.0 |
|
| Finance and insurance |
|
|
1,083 |
|
|
|
1,031 |
|
|
|
52 |
|
|
5.0 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue mix |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| New vehicle retail |
|
|
55.7 |
% |
|
|
52.8 |
% |
|
|
|
|
|
|
|
| Used vehicle retail |
|
|
25.1 |
|
|
|
25.8 |
|
|
|
|
|
|
| |
| Used vehicle wholesale |
|
|
4.2 |
|
|
|
4.9 |
|
|
|
|
|
|
|
|
| Finance and insurance, net |
|
|
3.4 |
|
|
|
3.2 |
|
|
|
|
|
|
|
|
| Service, body and parts |
|
|
10.5 |
|
|
|
12.0 |
|
|
|
|
|
|
|
|
| Fleet and other |
|
|
1.1 |
|
|
|
1.3 |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Adjusted |
|
|
As reported |
|
| |
|
Twelve months ended
December 31, |
|
|
Twelve months ended
December 31, |
|
| Other metrics |
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
| SG&A as a % of revenue |
|
11.3 |
% |
|
12.3 |
% |
|
11.3 |
% |
|
12.0 |
% |
| SG&A as a % of gross profit |
|
69.4 | |
|
72.5 |
|
|
69.3 |
|
|
71.1 |
|
| Operating profit as a % of revenue |
|
4.5 |
|
|
4.0 |
|
|
4.5 |
|
|
4.2 |
|
| Operating profit as a % of gross profit |
|
27.4 |
|
|
23.8 |
|
|
27.5 |
|
|
24.9 |
|
| Pretax margin |
|
3.8 |
|
|
3.2 |
|
|
3.9 |
|
|
3.4 |
|
| Net profit margin |
|
2.3 |
|
|
2.0 |
|
|
2.4 |
|
|
2.1 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Lithia Motors, Inc. |
|
| Same Store Operating Highlights |
|
| (Unaudited) |
|
| |
|
| |
|
Twelve months ended |
|
|
|
|
% |
|
| |
|
December 31, |
|
Increase |
|
|
Increase |
|
| |
|
2012 |
|
2011 |
|
(Decrease) |
|
|
(Decrease) |
|
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
| |
| New vehicle retail |
|
$ |
1,776,896 |
|
$ |
1,367,176 |
|
$ |
409,720 |
|
|
30.0 |
% |
| Used vehicle retail |
|
|
802,169 |
|
|
664,292 |
|
|
137,877 |
|
|
20.8 |
|
| Used vehicle wholesale |
|
|
132,722 |
|
|
123,046 |
|
|
9,676 |
|
|
7.9 |
|
| Finance and insurance |
|
|
107,376 |
|
|
81,055 |
|
|
26,321 |
|
|
32.5 |
|
| Service, body and parts |
|
|
329,803 |
|
|
309,805 |
|
|
19,998 |
|
|
6.5 |
|
| Fleet and Other |
|
|
30,928 |
|
|
33,426 |
|
|
(2,498 |
) |
|
(7.5 |
) |
| Total revenues |
|
$ |
3,179,894 |
|
$ |
2,578,800 |
|
$ |
601,094 |
|
|
23.3 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
| New vehicle retail |
|
$ |
128,894 |
|
$ | 104,960 |
|
$ |
23,934 |
|
|
22.8 |
% |
| Used vehicle retail |
|
|
117,817 |
|
|
96,126 |
|
|
21,691 |
|
|
22.6 |
|
| Used vehicle wholesale |
|
|
1,320 |
|
|
635 |
|
|
685 |
|
|
107.9 |
|
| Finance and insurance |
|
|
107,376 |
|
|
81,055 |
|
|
26,321 |
|
|
32.5 |
|
| Service, body and parts |
|
|
155,813 |
|
|
146,827 |
|
|
8,986 |
|
|
6.1 |
|
| Fleet and Other |
|
|
739 |
|
|
1,018 |
|
|
(279 |
) |
|
(27.4 |
) |
| Total gross profit |
|
$ |
511,959 |
|
$ |
430,621 |
|
$ |
81,338 |
|
|
18.9 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unit sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
| New vehicle retail |
|
|
53,590 |
|
|
41,391 |
|
|
12,199 |
|
|
29.5 |
% |
| Used vehicle retail |
|
|
46,179 |
|
|
38,628 |
|
|
7,551 |
|
|
19.5 |
|
| Used vehicle wholesale |
|
|
18,383 |
|
|
15,613 |
|
|
2,770 |
|
|
17.7 |
|
| Total units sold |
|
|
118,152 |
|
|
95,632 |
|
|
22,520 |
|
|
23.5 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average selling price |
|
|
|
|
|
|
|
|
|
|
|
|
|
| New vehicle retail |
|
$ |
33,157 |
|
$ |
33,031 |
|
$ |
126 |
|
|
0.4 |
% |
| Used vehicle retail |
|
|
17,371 |
|
|
17,197 |
|
|
174 |
|
|
1.0 |
|
| Used vehicle wholesale |
|
|
7,220 |
|
|
7,881 |
|
|
(661 |
) |
|
(8.4 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average gross profit per unit |
|
|
|
|
|
|
|
| |
|
|
|
|
| New vehicle retail |
|
$ |
2,405 |
|
$ |
2,536 |
|
$ |
(131 |
) |
|
(5.2 |
)% |
| Used vehicle retail |
|
|
2,551 |
|
|
2,489 |
|
|
62 |
|
|
2.5 |
|
| Used vehicle wholesale |
|
|
72 |
|
|
41 |
|
|
31 |
|
|
75.6 |
|
| Finance and insurance |
|
|
1,076 |
|
|
1,013 |
|
|
63 |
|
|
6.2 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Lithia Motors, Inc. |
| Other Highlights |
| (Unaudited) |
| |
| |
|
As of December 31, |
|
|
| |
|
2012 |
|
2011 |
|
Increase |
| Days Supply(1) |
|
|
|
|
|
|
| New vehicle inventory |
|
76 |
|
62 |
|
14 days |
| Used vehicle inventory |
|
56 |
|
52 |
|
4 days |
| |
|
|
|
|
|
|
| (1) Days supply calculated based on current inventory levels, excluding in-transit vehicles, and a 30-day historical cost of sales level. |
| |
| |
|
| |
|
| Financial covenants |
|
|
|
|
| |
|
Requirement |
|
As of December 31, 2012 |
| Current ratio |
|
Not less than 1.20 to 1 |
|
|
1.43 to 1 |
| Fixed charge coverage ratio |
|
Not less than 1.20 to 1 |
|
|
2.35 to 1 |
| Leverage ratio |
|
Not more than 5.00 to 1 |
|
|
2.08 to 1 |
| Funded debt restriction |
|
Not more than $375 million |
|
$ |
195.7 million |
| |
|
|
|
|
|
| |
|
| Lithia Motors, Inc. |
|
| Other Highlights |
|
| (Unaudited) |
|
| |
|
Three months ended
December 31, |
|
|
Twelve months ended
December 31, |
|
| |
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
| New vehicle unit sales brand mix |
|
|
|
|
|
|
|
|
|
|
|
|
| Chrysler |
|
32.0 |
% |
|
31.4 |
% |
|
32.2 |
% |
|
31.4 |
% |
| General Motors |
|
14.7 |
|
|
15.9 |
|
|
15.2 |
|
|
16.7 |
|
| Toyota |
|
13.8 |
|
|
12.0 |
|
|
13.7 |
|
|
12.3 |
|
| Subaru |
|
7.8 |
|
|
6.1 |
|
|
7.3 |
|
|
5.5 |
|
| BMW, MINI |
|
7.5 |
|
|
8.2 |
|
|
6.8 |
|
|
7.0 |
|
| Honda, Acura |
|
6.7 |
|
|
6.1 |
|
|
6.9 |
|
|
6.9 |
|
| Ford |
|
6.2 |
|
|
6.5 |
|
|
5.5 |
|
|
6.2 |
|
| Hyundai |
|
2.7 |
|
|
3.9 |
|
|
3.6 |
|
|
4.4 |
|
| Mercedes |
|
2.7 |
|
|
2.7 |
|
|
2.2 |
|
|
1.7 |
|
| Nissan |
|
2.5 |
|
|
3.1 |
|
|
2.8 |
|
|
3.6 |
|
| Volkswagen, Audi |
|
1.7 |
|
|
2.5 |
|
|
2.0 |
|
|
2.4 |
|
| Kia |
|
0.6 |
|
|
1.0 |
|
|
0.9 |
|
|
1.2 |
|
| Mazda |
|
0.5 |
|
|
0.3 |
|
|
0.5 |
|
|
0.5 |
|
| Other |
|
0.6 |
|
|
0.3 |
|
|
0.4 |
| |
0.2 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three months ended
December 31, |
|
|
Twelve months ended
December 31, |
|
| |
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
| Revenue geographic mix |
|
|
|
|
|
|
|
|
|
|
|
|
| Texas |
|
24.3 |
% |
|
25.0 |
% |
|
25.0 |
% |
|
25.2 |
% |
| Oregon |
|
20.1 |
|
|
20.1 |
|
|
19.9 |
|
|
18.4 |
|
| California |
|
10.5 |
|
|
10.3 |
|
|
10.4 |
|
|
10.4 |
|
| Washington |
|
8.8 |
|
|
8.4 |
|
|
8.3 |
|
|
8.4 |
|
| Montana |
|
8.7 |
|
|
8.2 |
|
|
8.8 |
|
|
8.6 |
|
| Alaska |
|
7.8 |
|
|
8.5 |
|
|
8.5 |
|
|
9.5 |
|
| Iowa |
|
5.2 |
|
|
5.4 |
| |
5.1 |
|
|
5.4 |
|
| Idaho |
|
5.0 |
|
|
5.8 |
|
|
5.3 |
|
|
6.1 |
|
| Nevada |
|
4.8 |
|
|
4.8 |
|
|
4.7 |
|
|
4.6 |
|
| North Dakota |
|
2.9 |
|
|
2.4 |
|
|
2.5 |
|
|
2.3 |
|
| New Mexico |
|
1.9 |
|
|
1.1 |
|
|
1.5 |
|
|
1.1 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| |
|
As of February 20, 2013 |
|
| Current store count mix |
|
# of stores |
|
% of total |
|
| Chrysler |
|
23 |
|
26.4 |
% |
| General Motors |
|
14 |
|
16.1 |
|
| Honda, Acura |
|
9 |
|
10.3 |
|
| Toyota |
|
8 |
|
9.2 |
|
| BMW, MINI |
|
7 |
|
8.0 |
|
| Hyundai |
|
6 |
|
6.9 |
|
| Ford |
|
5 |
|
5.7 |
|
| Nissan |
|
3 |
|
3.5 |
|
| Mercedes |
|
3 |
|
3.5 |
|
| Subaru |
|
3 | |
3.5 |
|
| Other |
|
3 |
|
3.5 |
|
| Kia |
|
2 |
|
2.3 |
|
| Volkswagen, Audi |
|
1 |
|
1.1 |
|
| |
|
|
|
|
|
| |
|
| Lithia Motors, Inc. |
|
| Consolidated Balance Sheets |
|
| (Unaudited) |
|
| (In thousands) |
|
| |
|
| |
|
December 31, 2012 |
|
|
December 31, 2011 |
|
| Cash and cash equivalents |
|
$ |
42,839 |
|
|
$ |
20,851 |
|
| Trade receivables, net |
|
|
133,149 |
|
|
|
99,407 |
|
| Inventories, net |
|
|
723,326 |
|
|
|
506,484 |
|
| Deferred income taxes |
|
|
3,832 |
|
|
|
4,730 |
|
| Other current assets |
|
|
17,484 |
|
|
|
16,719 |
|
| Assets held for sale |
|
|
12,579 |
|
|
|
- |
|
| Total current assets |
|
$ |
933,209 |
|
|
$ |
648,191 |
|
| |
|
|
|
|
|
|
|
|
| Property and equipment, net |
|
| 425,086 |
|
|
|
373,779 |
|
| Goodwill |
|
|
32,047 |
|
|
|
18,958 |
|
| Franchise value |
|
|
62,429 |
|
|
|
59,095 |
|
| Deferred income taxes |
|
|
17,123 |
|
|
|
29,270 |
|
| Other non-current assets |
|
|
22,808 |
|
|
|
16,840 |
|
| Total assets |
|
$ |
1,492,702 |
|
|
|
1,146,133 |
|
| |
|
|
|
|
|
|
|
|
| Floor plan notes payable |
|
$ |
13,454 |
|
|
$ |
114,760 |
|
| Floor plan notes payable: non trade |
|
|
568,130 |
|
|
|
229,180 |
|
| Current maturities of long-term debt |
|
|
8,182 |
|
|
|
8,221 |
|
| Trade payables |
|
|
41,589 |
|
|
|
31,712 |
|
| Accrued liabilities |
|
|
81,602 |
|
|
|
72,711 |
|
| Liabilities related to assets held for sale |
|
|
8,347 |
|
|
|
- |
|
| Total current liabilities |
|
$ |
721,304 |
|
|
|
456,584 | |
| |
|
|
|
|
|
|
|
|
| Long-term debt |
|
|
286,876 |
|
|
|
278,653 |
|
| Deferred revenue |
|
|
33,589 |
|
|
|
25,146 |
|
| Other long-term liabilities |
|
|
22,832 |
|
|
|
18,629 |
|
| Total liabilities |
|
$ |
1,064,601 |
|
|
$ |
779,012 |
|
| |
|
|
|
|
|
|
|
|
| Class A common stock |
|
|
268,801 |
|
|
|
279,366 |
|
| Class B common stock |
|
|
343 |
|
|
|
468 |
|
| Additional paid-in capital |
|
|
12,399 |
|
|
|
10,918 |
|
| Accumulated other comprehensive loss |
|
|
(2,615 |
) |
|
|
(4,508 |
) |
| Retained earnings |
|
|
149,173 |
|
|
|
80,877 |
|
| Total liabilities & stockholders' equity |
|
$ |
1,492,702 |
|
|
$ |
1,146,133 |
|
| |
|
|
|
|
|
|
|
|
| |
|
| Lithia Motors, Inc. |
|
| Summarized Cash Flow from Operations |
|
| (Unaudited) |
|
| (In thousands) |
|
| |
|
| |
|
Twelve months ended |
|
| |
|
December 31, |
|
| |
|
2012 |
|
|
2011 |
|
| Net income |
|
$ |
80,362 |
|
|
$ |
58,860 |
|
| |
|
|
|
|
|
|
|
|
| Adjustments to reconcile net income to net cash used in operating activities: |
|
|
|
|
|
|
|
|
| Asset impairments |
|
|
115 |
|
|
|
1,376 |
|
| Depreciation and amortization |
|
|
17,128 |
|
|
|
16,427 |
|
| Depreciation and amortization within discontinued operations |
|
|
186 |
|
|
|
521 |
|
| Stock-based compensation |
|
|
3,116 |
|
|
|
2,001 |
|
| Gain on disposal of assets |
|
|
(747 |
) |
|
|
(6,495 |
) |
| (Gain) loss from disposal activities within discontinued operations |
|
|
621 |
|
|
|
(4,396 |
) |
| Deferred income taxes |
|
|
14,172 |
|
|
|
8,093 |
|
| Excess tax benefit from share-based payment arrangements |
|
|
(2,802 |
) |
|
| (525 |
) |
| (Increase) decrease: |
|
|
|
|
|
|
|
|
| |
Trade receivables, net |
|
|
(33,704 |
) |
|
|
(22,503 |
) |
| |
Inventories |
|
|
(230,442 |
) |
|
|
(78,202 |
) |
| |
Other current assets |
|
|
(4,194 |
) |
|
|
(13,111 |
) |
| |
Other non-current assets |
|
|
(6,176 |
) |
|
|
(1,108 |
) |
| Increase (decrease): |
|
|
|
|
|
|
|
|
| |
Floor plan notes payable |
|
|
(82,109 |
) |
|
|
13,510 |
|
| |
Trade payables |
|
|
8,001 |
|
|
|
5,998 |
|
| |
Accrued liabilities |
|
|
10,538 |
|
|
|
11,605 |
|
| |
Other long-term liabilities and deferred revenue |
|
|
13,459 |
|
|
|
7,183 |
|
| Net cash used in operating activities |
|
$ |
(212,476 |
) |
|
$ |
(766 |
) |
| |
|
|
|
|
|
|
|
|
| |
|
| Lithia Motors, Inc. |
|
| Reconciliation of Non-GAAP Cash Flow from Operations |
|
| (Unaudited) |
|
| (In thousands) |
|
| |
|
Twelve months ended |
|
| |
|
December 31, |
|
| Net cash provided by (used in) operating activities |
|
2012 |
|
|
2011 |
|
| As reported |
|
$ |
(212,476 |
) |
|
$ |
(766 |
) |
| |
Floor plan notes payable, non-trade |
|
|
348,477 |
|
|
|
63,145 |
|
| Adjusted |
|
$ |
136,001 |
|
|
$ |
62,379 |
|
| |
|
|
|
|
|
|
|
|
| |
|
| Lithia Motors, Inc. |
|
| Reconciliation of Certain Non-GAAP Financial Measures |
|
| (Unaudited) |
|
| (In thousands, except for per share data) |
|
| |
|
Three months ended December 31, 2012 |
|
| |
|
As reported |
|
|
Tax attribute |
|
|
Adjusted |
|
| Income from continuing operations before income taxes |
|
$ |
31,818 |
|
|
$ |
- |
|
|
$ |
31,818 |
|
| Income tax expense |
|
|
(12,154 |
) |
|
|
(374 |
) |
|
|
(12,528 |
) |
| Net income from continuing operations |
|
$ |
19,664 |
| |
$ |
(374 |
) |
|
$ |
19,290 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted earnings per share from continuing operations |
|
$ |
0.76 |
|
|
$ |
(0.02 |
) |
|
$ |
0.74 |
|
| Diluted share count |
|
|
26,068 |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| |
|
Three months ended December 31, 2011 |
|
| |
|
As reported |
|
|
Asset impairment and disposal gain |
|
|
Reserve adjustments |
|
|
Adjusted |
|
| Cost of sales - service, body and parts |
|
$ |
43,652 |
|
|
$ |
- |
|
|
$ |
(950 |
) |
|
$ |
42,702 |
|
| Gross profit |
|
|
112,852 |
|
|
|
- |
|
|
|
950 |
|
|
|
113,802 |
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
| Asset impairments |
|
|
504 |
|
|
|
(504 |
) |
|
|
- |
|
|
|
- |
|
| Selling, general and administrative |
|
|
78,331 |
|
|
|
6,301 |
|
|
|
- |
|
|
|
84,632 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income from operations |
|
|
29,922 |
|
|
|
(5,797 |
) |
|
|
950 |
|
|
|
25,075 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income from continuing operations before income taxes |
|
$ |
23,917 |
|
|
$ |
(5,797 |
) |
|
$ |
950 |
|
|
$ |
19,070 |
|
| Income tax expense |
|
|
(7,896 |
) |
|
|
1,842 |
|
|
|
(360 |
) |
|
|
(6,414 |
) |
| Net income from continuing operations |
|
$ |
16,021 |
| |
$ |
(3,955 |
) |
|
$ |
590 |
|
|
$ |
12,656 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted earnings per share from continuing operations |
|
$ |
0.61 |
|
|
$ |
(0.15 |
) |
|
$ |
0.02 |
|
|
$ |
0.48 |
|
| Diluted share count |
|
|
26,442 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Lithia Motors, Inc. |
|
| Reconciliation of Certain Non-GAAP Financial Measures |
|
| (Unaudited) |
|
| (In thousands, except for per share data) |
|
| |
|
| |
|
Twelve months ended December 31, 2012 |
|
| |
|
As reported |
|
|
Asset impairment and disposal gain |
|
|
Equity investment |
|
|
Tax attribute |
|
|
Adjusted |
|
| Asset impairments |
|
$ |
115 |
|
|
$ |
(115 |
) |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- | |
| Selling, general and administrative |
|
|
373,688 |
|
|
|
739 |
|
|
|
- |
|
|
|
- |
|
|
|
374,427 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income from operations |
|
|
148,369 |
|
|
|
(624 |
) |
|
|
- |
|
|
|
- |
|
|
|
147,745 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other income, net |
|
|
2,525 |
|
|
|
- |
|
|
|
(244 |
) |
|
|
- |
|
|
|
2,281 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income from continuing operations before income taxes |
|
$ |
128,457 |
|
|
$ |
(624 | ) |
|
$ |
(244 |
) |
|
$ |
- |
|
|
$ |
127,589 |
|
| Income tax expense |
|
|
(49,062 |
) |
|
|
249 |
|
|
|
97 |
|
|
|
(1,447 |
) |
|
|
(50,163 |
) |
| Net income from continuing operations |
|
$ |
79,395 |
|
|
$ |
(375 |
) |
|
$ |
(147 |
) |
|
$ |
(1,447 |
) |
|
$ |
77,426 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted earnings per share from continuing operations |
|
$ |
3.03 |
|
|
$ |
(0.01 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.05 |
) |
|
$ |
2.96 |
|
| Diluted share count |
|
|
26,170 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| |
|
Twelve months ended December 31, 2011 |
|
| |
|
As reported |
|
|
Asset impairment and disposal gain |
|
|
Reserve adjustments |
|
|
Adjusted |
|
| Cost of sales - service, body and parts |
|
$ |
163,738 |
|
|
$ |
- |
|
|
$ |
(950 |
) |
|
$ |
162,788 |
|
| Gross profit |
|
|
445,284 |
|
|
|
- |
|
|
|
950 |
|
|
|
446,234 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Asset impairments |
|
|
1,376 |
|
|
|
(1,376 |
) |
|
|
- |
|
|
|
- |
|
| Selling, general and administrative |
|
|
316,663 |
|
|
|
6,881 |
|
|
|
- |
|
|
|
323,544 |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| Income from operations |
|
|
110,818 |
|
|
|
(5,505 |
) |
|
|
950 |
|
|
|
106,263 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income from continuing operations before income taxes |
|
$ |
88,270 |
|
|
$ |
(5,505 |
) |
|
$ |
950 |
|
|
$ |
83,715 |
|
| Income tax expense |
|
|
(33,060 |
) |
|
|
1,724 |
|
|
|
(360 |
) |
|
|
(31,696 |
) |
| Net income from continuing operations |
|
$ |
55,210 |
|
|
$ |
(3,781 |
) |
|
$ |
590 |
|
|
$ |
52,019 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted earnings per share from continuing operations |
|
$ |
2.07 |
|
|
$ |
(0.14 |
) |
|
$ |
0.02 |
|
|
$ |
1.95 |
|
| Diluted share count | |
|
26,664 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|