Lithia Motors Reports Adjusted EPS of $1.05 for Second Quarter 2013, Revenue Up 23%; Increases 2013 Outlook
Lithia Motors Declares $0.13 per Share Dividend for Second Quarter 2013
(firmenpresse) - MEDFORD, OR -- (Marketwired) -- 07/24/13 -- Lithia Motors, Inc. (NYSE: LAD) today reported the highest quarterly adjusted net income in Company history, and a 42% increase in adjusted net income per share from continuing operations for the second quarter 2013 over the prior year period.
2013 second quarter adjusted income from continuing operations was $27.4 million, or $1.05 per diluted share. This compares to 2012 second quarter adjusted income from continuing operations of $19.4 million, or $0.74 per diluted share.
Unadjusted net income from continuing operations for the second quarter of 2013 was $25.3 million, or $0.97 per diluted share, compared to $20.0 million, or $0.76 per diluted share for 2012. As shown in the attached non-GAAP reconciliation tables, the 2013 second quarter adjusted results from continuing operations exclude an $0.08 per share expense due to a non-core legal reserve related to a case filed in 2006, partially offset by a tax attribute. The 2012 second quarter adjusted results from continuing operations exclude a benefit of $0.02 per share related to a non-core tax attribute.
New vehicle same store sales increased 19%
Used vehicle retail same store sales increased 19%
Service, body and parts same store sales increased 7%
Adjusted SG&A expense as a percentage of gross profit decreased 330 basis points to 66%
Second quarter 2013 revenue from continuing operations increased $186.2 million, or 23%, to $1.0 billion from $822.3 million in the second quarter of 2012.
"We exceeded $1.0 billion in quarterly revenue for the first time in our history," said Bryan DeBoer, President and CEO. "The combination of acquisitions and same store sales growth increased revenue by 23% over the prior year. Our adjusted net income from continuing operations increased 41% from the prior year, significantly above the growth in revenue, as we increase our operating leverage. Based on our results through the first six months of the year, we are well on our way towards the first milestone for growth we established late in 2012, where total revenue increases by 25% from full year 2012 results."
For the first six months of 2013, adjusted net income per share from continuing operations increased 42% to $1.89 compared to $1.33 for the first six months of 2012. Unadjusted, for the first six months of 2013, net income from continuing operations was $1.81 per diluted share, compared to $1.39 per diluted share for the first six months of 2012.
Chris Holzshu, SVP and CFO said, "Adjusted SG&A as a percentage of gross profit was 66.0% in the second quarter, and 67.5% for the first six months of 2013. This is a record result and is primarily a result of our stores' continued focus on maintaining incremental throughput, or the percentage of additional same store gross profit dollars that we retain after deducting selling costs, above 50%. On a same store basis and adjusted for certain non-core items, incremental throughput was 56.5% in the second quarter and 52.9% for the first six month of 2013."
On June 10, 2013, we purchased BMW, Honda and Volkswagen stores in Salem, Oregon, with estimated annualized revenues of $110 million. In April 2013, we opened a MINI store in Anchorage, Alaska with estimated annualized revenues of $13 million.
Bryan DeBoer, President and CEO, stated, "We continue to seek exclusive franchises in the markets we serve and view acquisitions as one of the long term drivers of growth for Lithia. We believe that additional acquisition opportunities meeting both our strategic and return requirements remain available in the marketplace."
We ended the second quarter with $20 million in cash and $91 million in available credit on our credit facilities. Additionally, approximately $164 million of operating real estate is currently unfinanced, which we estimate could provide up to an additional $123 million in available liquidity, for total liquidity of $234 million.
Lithia announced that the Board of Directors has approved a dividend of $0.13 per share for the second quarter 2013. Lithia will pay the dividend August 23, 2013 to shareholders of record on August 9, 2013.
We project 2013 third quarter earnings of $1.06 to $1.08 per diluted share and full year 2013 earnings of $3.80 to $3.85 per diluted share. Both projections are based on the following annual assumptions:
Total revenues of $3.9 to $4.0 billion
New vehicle same store sales increasing 17.0%
New vehicle gross margin of 6.6% to 6.8%
Used vehicle same store sales increasing 16.5%
Used vehicle gross margin of 14.7% to 14.9%
Service body and parts same store sales increasing 7.0%
Service body and parts gross margin of 48.8% to 49.0%
Finance and insurance gross profit of $1,100 per unit
Tax rate of 39.5%
Average diluted shares outstanding of 26.2 million
Capital expenditures of $55 million
Guidance excludes the impact of future acquisitions, dispositions, and any potential non-core items
The second quarter conference call may be accessed at 10:00 a.m. ET today by telephone at 877-407-8029. An updated presentation highlighting the second quarter results has been added to .
To listen live on our website or for replay, visit and click on webcasts. A playback of the conference call will be available on July 24, 2013 through August 8, 2013 by calling 877-660-6853 (Conference ID: 417561).
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 91 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.
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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 "project," "outlook," "expect," "anticipate," "intend," "plan," "believe," "estimate," "may," "seek," "would," "should," "likely," or "will" and similar references to future periods. Examples of forward-looking statements in this press release include our outlook of earnings per share results and the assumptions that underlie them.
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.
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.
Contact:
John North
VP Finance and Controller
(541) 618-5748
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Datum: 24.07.2013 - 05:29 Uhr
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