Lithia Motors Reports Business Improvements With Sequential Increases Throughout April and May
June 02 2020 - 8:00AM
Business Wire
Lithia Motors, Inc. (NYSE: LAD) today reported notable
improvements across all business lines from the declines
experienced in March and April as states begin to relax
shelter-in-place policies and enter into the various phases of
reopening.
For the entire month of May, total same store vehicle unit sales
decreased approximately 7%, with same store new vehicle unit sales
decreasing approximately 20% and same store used vehicle unit sales
increasing approximately 8% over the same period last year. Total
vehicle unit sales saw weekly sequential improvements in May as
shelter-in-place policies began to be lifted throughout the
country. During the first week of May, same store new vehicle unit
sales decreased approximately 28% and used vehicle unit sales
decreased approximately 5%. Significant improvement was seen by the
end of the last week of May, with same store new vehicle unit sales
decreasing approximately 16% and same store used vehicle unit sales
increasing approximately 22% over the same period last year. The
increases in used vehicles unit sales during the last week of May
returned to the strong levels achieved for the first two months of
2020 and prior to the pandemic. In addition, same store web
traffic, representing unique visitors to our websites, increased
nearly 40% for the last week of May compared to the same period
last year.
“These steady improvements throughout May underscore the
strength of Lithia’s highly diversified business model and
offerings,” said Bryan DeBoer, President and CEO. “Coupled with our
amazing team members, second largest owned online inventory in the
country, and our digital home solutions, we were able to generate
positive earnings and cash flow during these unprecedented times
allowing us to accelerate our growth strategy during the second
half of this year.”
Service, body, and parts also showed signs of recovery in May,
with same store sales decreasing approximately 27% for the month.
The recovery trend in May reflected two less production days in
2020 compared to the same period last year.
About Lithia Lithia Motors, Inc. is one of the largest
providers of personal transportation solutions in the United States
and is among the fastest growing companies in the Fortune 500
(#252-2020). Lithia is a growth company powered by people and
innovation. By purchasing and building strong businesses that have
yet to realize their potential, Lithia generates significant cash
flows with low leverage. Operational excellence is achieved by
refocusing the business on the consumer experience and by utilizing
proprietary performance measurements to increase market share and
profitability. Lithia’s unique growth model invests to expand its
nationwide network and to fund innovations that create personal
transportation solutions wherever, whenever and however consumers
desire.
Sites www.lithia.com
www.lithiainvestorrelations.com www.lithiacareers.com
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Lithia Motors on Twitter http://twitter.com/lithiamotors
Forward-Looking Statements Certain statements in this
press release, and at times made by our officers and
representatives, constitute forward-looking statements within the
meaning of the “Safe Harbor” provisions of the Private Securities
Litigation Reform Act of 1995. Generally, you can identify
forward-looking statements by terms such as “anticipate”,
“project”, “outlook”, “target”, “may”, “will”, “would”, “should”,
“seek”, “expect”, “plan”, “intend”, “forecast”, “anticipate”,
“believe”, “estimate”, “predict”, “potential”, “likely”, “goal”,
“strategy”, “future”, “maintain”, and “continue” or the negative of
these terms or other comparable terms. Examples of forward-looking
statements in this press release include, among others, statements
regarding:
- Anticipated positive and negative impacts in consumer demand or
governmental restrictions related to the COVID-19 pandemic or
otherwise;
- Expected level of business interruption due to shelter in place
policies or lifting of those restrictions, and when volumes and
consumer demand will return;
- Future market conditions; and
- Our strategies for customer retention, growth, market position,
financial results and risk management.
Because forward-looking statements relate to the future, they
are subject to inherent uncertainties, risks and changes in
circumstances that are difficult to predict and many of which are
outside of our control. Forward-looking statements are not
guarantees of future performance, and our actual results of
operations, financial condition and liquidity and development of
the industry in which we operate may differ materially from those
made in or suggested by the forward-looking statements in this
presentation. Therefore, you should not rely on any of these
forward-looking statements. 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), including as a result of the COVID-19 pandemic;
- Changes in customer demand and customers confidence, and the
financial ability of customers to purchase vehicles;
- 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);
- The adequacy of our cash flow and earnings and other
conditions;
- Disruptions to our technology network including computer
systems and software, as well as natural events such as severe
weather, fires, floods and earthquakes or man-made or other
disruptions of our operating systems, structures, facilities or
equipment; and
- Government regulations, legislation and others set forth
throughout “Part II, Item 7. Management’s Discussion and Analysis
of Financial Condition and Results of Operations” and in “Part I,
Item 1A. Risk Factors” of our most recent Annual Report on Form
10-K, and from time to time in our other filings with the SEC.
Any forward-looking statement made by us in this press release
is based only on information currently available to us and speaks
only as of the date on which it is made. Except as required by law,
we undertake no obligation to publicly update any forward-looking
statement, whether written or oral, that may be made from time to
time, whether as a result of new information, future developments
or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20200602005373/en/
Eric Pitt VP, Investor Relations and Treasurer EPitt@lithia.com
(541) 864-1748
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