MEDFORD, Ore. — Lithia Motors Inc. announced today that net income from continuing operations in the second quarter of 2009 was $4.1 million, compared to net loss from continuing operations of $201.2 million.
Second quarter 2009 revenue from continuing operations totaled $402 million, compared to $532 million in the year-ago period, driven primarily by lower new vehicle sales. Same-store retail new vehicle sales declined 36.8 percent, while retail used vehicle sales increased 2.3 percent compared to the year-ago period. F&I same-store sales declined by 34.8 percent. Service, body and parts same store sales declined 5.2 percent.
Sid DeBoer, Lithia’s Chairman and CEO, commented: “The restructuring plan we initiated in the second quarter of 2008 is proving to be successful. Despite a new vehicle automotive market that is at historic lows, and the impact of the reorganization of both Chrysler and General Motors, Lithia is profitable. We have focused on improving gross margins and used vehicle retail sales throughout the year and are pleased with our results. We continue to right-size our organization to match industry sales volumes and performance objectives. SG&A as a percentage of gross profit declined by 730 basis points, from 86.8 percent in the first quarter of 2009 to 79.5 percent in the second quarter of 2009.”
For the six-month period ending June 30, 2009, total revenue declined 27 percent to $769 million as compared to $1.05 billion year-ago period. Same-store new vehicle sales decreased 37.8 percent, while retail used vehicle sales decreased 4.4 percent and service, body and parts sales decreased 5.5 percent. Same-store F&I sales dropped 33.6 percent.
Jeff DeBoer, senior vice president and CFO, added: “We have generated $74.3 million in cash flows from operations in 2009. Including the effects of floorplan repayments classified as financing activities in the statement of cash flows, adjusted cash flows from operations were $48.8 million for the year to date period. We are using these proceeds and cash generated from financing and asset sales to pay down debt and strengthen the balance sheet. We remain in compliance with all debt covenants at the end of the quarter.”