60% of Lithia Motors Sales in Top 10% Nationally Ranked Markets
4 January 2000
60% of Lithia Motors Sales in Top 10% Nationally Ranked Markets for Favorable Business Climate
MEDFORD, Ore., Jan. 4 -- Lithia Motors, Inc. , one
of the nation's largest auto retailers, announced that a recent study on
business climates in 316 metro areas found that four markets where Lithia has
a significant operating presence are ranked in the top 10 markets in the
nation. The four markets are Boise, Idaho, Denver and Fort Collins, Colorado
and Medford, Oregon. Lithia's headquarters and management company are located
in Medford, Oregon.
Boise is ranked first in the nation followed by Denver in the second
position. Fort Collins is ranked fourth with Medford ranked in the eighth
position nationally. Three other markets where Lithia currently has stores
were ranked in the top 30. Reno, Nevada is ranked 14th, Eugene, Oregon is
ranked 16th, and Colorado Springs, Colorado is ranked 30th. The Business
Opportunity Index compares American cities by looking at a dozen economic
indicators. The study was compiled by the University of Texas in El Paso and
is available at 915-747-7744. The statistical categories included
measurements of population growth, job growth in the private sector, income,
wealth, the cost of government and the rate and success of business ownership.
Sidney B. DeBoer, Chairman and CEO of Lithia Motors, stated, "This study
confirms the validity of our growth strategy of clustering automobile retail
stores in highly attractive, middle-sized markets. Approximately 60% of our
sales are located in the top 10% of the 316 metro markets included in the
study. More importantly, approximately 36% of our sales are located in the
top 3% of these markets. We continue to look for dominant franchises that are
not realizing their full business potential so that we can buy them
accretively, improve the operations by implementing the Lithia operating model
and earn a high return on invested capital. Our ability to exceed Wall
Street's estimates all twelve quarters, or three full years, since we have
been a public company demonstrates that this is a highly profitable and
successful business strategy."
Lithia is one of the largest auto retailers in the nation operating
98 franchises in California, Oregon, Washington, Nevada, Colorado, and Idaho.
Lithia offers 24 brands of new vehicles at 41 stores and over the Internet
through "Lithia.com-America's Car & Truck Store." 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 38,005 new and used vehicles in the first nine
months of 1999. Lithia's current annualized revenue run rate, including all
completed acquisitions, is over $1.4 billion or approximately 63,500 retail
new and used units.
This press release includes forward looking statements, 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, economic conditions,
acquisition risk factors and others set forth from time to time in the
company's filings with the SEC. Specific risks relevant to this press release
include future business climates, the availability of future accretive
acquisitions, return on investment, operational improvements, revenue run rate
and unit sales run rate.
CONTACT: Jeff DeBoer, Vice President of Finance/Investor Relations, of
Lithia Motors, Inc., 541-776-6868, or invest@lithia.com