Lithia Motors Reports 64% Net Profit Increase In Q1 2000
26 April 2000
Lithia Motors Reports 64% Net Profit Increase on 76% Increase in Sales In First Quarter Of 2000; Earns 37 Cents Per Share LITHIA AUTOMOTIVE GROUP LOGO Lithia Automotive Group logo. Contact: Betty Whitney, 541-776-6591. (PRNewsFoto)[DM] MEDFORD, OR USA 09/09/1999
MEDFORD, Ore., April 26 Lithia Motors, Inc. (NYSE: LAD)
today announced that net earnings for the quarter ended March 31, 2000 rose
64% to $4.96 million compared to $3.03 million in the first quarter of 1999.
Revenues for the same period increased 76% to $395.6 million from
$224.1 million in the first quarter of 1999. Lithia earned $0.37 per share on
13.5 million diluted shares outstanding vs. $0.29 per share on 10.6 million
diluted shares in the same quarter of 1999. This represents a 28% increase in
earnings per share on 27% more shares outstanding. Cash flow per share (net
income plus depreciation and amortization) was $0.50 per share in the first
quarter of 2000 versus $0.39 a year ago.
Chairman and Chief Executive Officer, Sidney B. DeBoer, stated, "Once
again we have had a very strong quarter, beating the Wall Street consensus
estimate by three cents. Lithia is the only public auto retailer in the
nation that has exceeded analyst estimates for 14 consecutive quarters. This
quarter's results continue to demonstrate the discipline and success of
Lithia's operating model. One important highlight is that we realized gross
margin improvements in all areas of the business."
"Another key factor in the strength of this quarter's results is a 5.8%
increase in same-store sales which was realized on top of a 12.9% increase in
the same period last year. As a group, our five core stores in Southern
Oregon continued to improve same-store sales. These stores serve as the model
for all of our stores, and we use them to familiarize and train our new
General Managers in the implementation and practice of Lithia's operating
procedures. Their continuing success highlights the fact that we are doing
things right," added M.L. Dick Heimann, Lithia's President and Chief Operating
Officer.
New vehicle sales increased by 87%, used retail vehicle sales increased by
79%, service and parts sales increased by 64% and other revenues, which
includes finance and insurance, increased by 86% in the first quarter of 2000
compared to the first quarter of 1999. Lithia sold 9,030 new vehicles and
7,473 retail used vehicles during the first quarter compared to 5,231 and
4,253, respectively, during the first quarter of 1999.
Sid DeBoer commented, "We continue to be reassured by the number of
attractive dealerships available for purchase in our target acquisition areas.
With over $125 million in available acquisition capital from Ford Credit and
expected future internal cash generation from operations, Lithia is well
positioned to continue its current disciplined growth plan and increase
earnings per share with each future acquisition."
In March, Lithia completed the acquisition of the Bob Rice Ford/Chrysler
dealership in Boise, Idaho with 1999 revenues of approximately $73 million.
Lithia now operates 101 franchises in California, Oregon, Washington, Nevada,
Colorado and Idaho. Lithia sells 25 brands of new vehicles at 45 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 52,485 new and used vehicles in 1999.
Lithia's current annualized revenue run rate, including all completed
acquisitions, is over $1.5 billion.
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 in this press release include
operational improvements, future acquisitions, availability of capital, EPS
increases and revenue run rate.
LITHIA MOTORS, INC.
(In Thousands except per share and unit data)
Three Months Ended
March 31,
Unaudited 1999 2000 % Change
New Vehicle Sales $116,853 $218,009 +87%
Used Vehicle Sales 71,809 116,698 +63%
Service & Parts Sales 23,430 38,457 +64%
Other Revenues 12,053 22,439 +86%
Total Revenue 224,145 395,603 +76%
Cost of Sales 188,945 332,739 +76%
Gross Profit 35,200 62,864 +79%
SG&A Expense 26,648 47,201 +77%
Depreciation & Amortization 1,075 1,720 +60%
Income from Operations 7,477 13,943 +86%
Flooring Interest Expense 2,109 3,861 +83%
Other Interest Expense 629 1,795 +185%
Other Income, net 266 128 -52%
Pre-Tax Profit 5,005 8,415 +68%
Income Tax 1,976 3,451 +75%
Net Profit $3,029 $4,964 +64%
Shares Outstanding 10,605 13,496 +27%
Diluted EPS $0.29 $0.37 +28%
Unit Sales:
New 5,231 9,030 +73%
Used - Retail 4,253 7,473 +76%
Used - Wholesale 3,195 4,040 +26%
Total 12,679 20,543 +62%
Average Selling Price:
New $22,338 $24,143 +8%
Used - Retail $12,948 $13,175 +2%
Used - Wholesale $5,239 $4,515 -14%
Key Financial Data:
EBITDA $8,818 $15,791
Income Tax Rate 39.5% 41.0%
Gross Profit Margin 15.7% 15.9%
SG&A as a % of Sales 11.9% 11.9%
Operating Margin 3.3% 3.5%
Pre-Tax Margin 2.2% 2.1%
LITHIA MOTORS, INC.
Balance Sheet Highlights:
(Dollars in Thousands)
Period Ended
Unaudited Dec. 31, 1999
March 31, 2000
Cash & Cash Equivalents $30,364 $34,233
Inventory 268,281 305,930
Other Current Assets 35,999 39,540
Total Current Assets 334,644 379,703
Property & Equipment, net 52,368 59,254
Goodwill, net 110,677 118,699
Other Assets 8,744 8,300
TOTAL ASSETS $506,433 $565,956
Floorplan Notes Payable $208,403 $244,098
Other Current Liabilities 51,242 42,558
Total Current Liabilities 259,645 286,656
Long-Term Debt 73,715 97,549
Other Liabilities 17,435 20,241
Total Liabilities $350,795 $404,446
Shareholders Equity 155,638 161,510
TOTAL LIABILITIES &
SHAREHOLDERS' EQUITY $506,433 $565,956
Other Balance Sheet Data (Dollars in Thousands)
Current Ratio 1.29x 1.32x
LT Debt/Total Cap. 32% 38%
Working Capital $74,999 $93,047