Lithia Motors, Inc. announced October 24th net earnings of $7.7 million, or $0.56 per diluted share on 13.8 million diluted shares outstanding for the third quarter 2001. This is 2.7% higher than the previous record quarter in the third quarter of 2000, with $7.5 million or $0.55 per diluted share on 13.8 million diluted shares. Cash flow per share was $0.73 in the third quarter of 2001 as compared to $0.69 in the same period last year. Cash flow per share was 30.4% higher than EPS for the quarter. Net cash provided by operating activities year to date was $39.4 million, 53.9% higher than $25.6 million in the same period last year.
Lithia Motors also reported that total sales increased 6.4% to $471.3 million in the third quarter of 2001 from $443.1 million in the third quarter of 2000. Total gross profits grew by 12.6%. New vehicle sales increased 1.8%, used retail vehicles increased 17.5%, parts/service sales increased 13.1%, and finance/insurance sales increased 17.6%. Lithia retailed 9,825 used units and 10,072 new units, demonstrating a used/new ratio of 0.98:1 and a total of 19,897 used and new retail units this quarter, and 56,374 year to date. Finance and Insurance sales per unit increased 9.6% to $934 per unit compared tothe third quarter last year.
Chairman and CEO Sidney B. DeBoer stated, "We are pleased to report record sales and profits this quarter. Earnings were $0.56 per share this quarter, exceeding by 13 cents the First Call consensus estimate of $0.43 per share. Our domestic brands continue to be our most profitable, and on average earn a higher gross profit per unit than our import brands. While new vehicle sales growth has slowed, the growth in new vehicle gross profits has remained strong."
"In line with the slower new vehicle sales environment, total same-store retail sales declined 6.7% for the quarter. Year to date same-store retail sales have declined 4.7%. However, lower interest rates have cushioned the effect of slower new vehicle sales, and we have been able to grow both total sales and earnings through accretive acquisitions and operational improvements this quarter. Even with very conservative assumptions for a continued decline in new vehicle same store sales, we are forecasting continued sales and earnings growth in 2002," concluded Sidney B. DeBoer.
Jeffrey B. DeBoer, senior vice president and CFO added, "In 2002, we expect to add from $300 to $600 million in new acquisition revenues. We have the capital in place to execute this acquisition plan. Lithia's balance sheet is improving as inventories are at historically low levels and our long term debt to total capitalization ratio has improved to 27%, even as we've completed acquisitions. The slower economic environment enhances our acquisition strategy, and we are confident that going forward we can continue to grow our business through good acquisitions and continuing operational improvements."
For additional information on Lithia Motors, contact Jeff DeBoer, senior VP and CFO at 541-776-6868 or Dan Retzlaff, investor relations at 541-776-6819 or log on to www.lithia.com.