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Lithia sales continue to climb Used vehicle side rises 17 percent By SHARI DOWNHILL Regional automotive heavy-hitter Lithia Motors Inc. has announced record first quarter sales of $420 million, up from $395 million for the same period in 2000. "These results are stronger than expected at the beginning of the year, with both sales and earnings above forecast levels," said Sidney DeBoer, Lithia's chairman and chief executive officer. "Earnings were 21 cents per share this quarter, exceeding First Call consensus estimates of 19 cents per share." Even though new car sales dropped from 2000 first quarter levels, Lithia's used car and parts and service segments surged, carrying the automotive retailer's revenues to record levels, according to company financial figures. Medford-based Lithia sold 8,854 used vehicles and 8,732 new vehicles during the first quarter of this year, an overall increase of 7 percent over year-ago numbers. While new vehicle sales decreased 1 percent and comprised 51.2 percent of total sales, used vehicle sales increased 17 percent, accounting for 32.6 percent of the retailer's sales through the first quarter. Lithia had expected a 10 to 12 percent decline in same-store sales for 2001, but first-quarter figures showed the drop was almost 7 percent, according to company reports. "The counter-cyclical nature of the used vehicle and parts and service businesses took center stage this quarter with solid gains in both segments," DeBoer said. "This is the first quarter that Lithia has sold more used vehicles than new vehicles since reporting as a public company." The retailer's first quarter net income dropped to $2.86 million, down from $4.96 million for first quarter 2000. Lithia's financial growth has historically resulted from aggressive acquisitions across the region. Chief Financial Officer Jeff DeBoer said 2001 will see more acquisitions. "For the remainder of 2001, we are assuming approximately $250 (million) to $300 million in annualized revenues from acquisitions," Jeff DeBoer said. "Year to date, we have closed on approximately $83 million in revenues. These acquisitions, in total, should contribute approximately $150 million to $200 million in revenues throughout 2001." Lithia has at its disposal a Ford Credit line of $130 million, plus additional operational cash that it plans to use for business acquisitions throughout 2001, Jeff DeBoer said. "Lithia is well positioned to continue its current disciplined growth plan," he said. "Our balance sheet remains one of the strongest in our sector, which enables us to continue to execute our acquisition plans in an environment which we expect to be increasingly attractive for completing deals." Lithia estimates second-quarter revenues of $430 million to $450 million, and from $1.7 to $1.9 million for the year. Lithia operates 114 franchises in California, Oregon, Washington, Nevada, Colorado, Idaho, South Dakota and Alaska, and the Lithia.com Web site. Reach reporter Shari Downhill at 776-4463, or e-mail [email protected] Mail Tribune Home | Ottaway Newspapers, Inc. | Dow Jones & Co., Inc. | Privacy | Contact Us Copyright � 2001 Mail Tribune, Inc.