) reported a significant 80% increase in profits to $15.8 million
or 60 cents per share in the first quarter of 2012 from $8.8
million or 33 cents in the corresponding quarter of last year (all
excluding special items). With this, it surpassed the Zacks
Consensus Estimate by 18 cents per share during the quarter.
Revenues in the quarter hiked 30% to $758.9 million from $582.9
million in the same quarter prior year. The increase in revenues
was attributable to improvements in new vehicle and used vehicle
same store sales. Revenues exceeded the Zacks Consensus Estimate of
Revenues from new vehicle retail increased 34.5% to $404.3
million from $300.6 million in the corresponding quarter last year.
New vehicle same store sales increased 23.9% to 11,631 units in the
quarter. Used vehicle revenues swelled 24.9% to $195.4 million on
15.6% rise in same store sales to 10,806 units. Revenue went up
16.2% to $34.3 million in the used vehicle wholesale business.
Same-store unit sales went up 17.5% to 4,312 vehicles in the
Gross profit swelled 25.9% to $127.9 million or 17% of sales in
the quarter from $101.6 million or 17.4% of sales in the first
quarter of 2011. Meanwhile, operating income was $32 million or 4%
of sales compared with $20 million or 3% in the year-ago
Lithia Motors had cash and cash equivalents of $8.9 million as
of March 31, 2012, down from $20.9 million as of December 31, 2011.
Total debt was $285.9 million as of March 31, 2012 compared with
$286.9 million as of December 31. 2011. The company had an
operating net cash outflow of $41.0 million compared to $11.2
million in the first quarter of 2011.
Lithia Motors expects earnings in the range of 60 cents to 62
cents per share for the second quarter of 2012 and $2.45 to $2.53
per share for the full year 2012. The company expects revenues
between $2.9 billion and $3.1 billion for 2012, with 16% increase
in new vehicle same store sales and 13% hike in used vehicle same
Lithia Motors is the ninth largest automotive retailer in
U.S.With 83 stores in 11 states, the company provides 25 new
vehicle brands along with all brands of used vehicle. It competes
Penske Automotive Group Inc.
Currently, the company retains a Zacks #1 Rank, which implies a
Strong Buy rating for the short-term and we have an Outperform
recommendation on the shares of the company for the long-term.
AUTONATION INC (AN): Free Stock Analysis Report
LITHIA MOTORS (LAD): Free Stock Analysis Report
PENSKE AUTO GRP (PAG): Free Stock Analysis
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