Used Car News

Lithia Motors Inc. announced fourth quarter 2009 revenue totaled $419 million, compared to $399 million in the year-ago period, an increase driven primarily by higher used vehicle sales.

Same store new vehicle sales increased 1.2 percent while used vehicle retail sales increased 17.9 percent when compared to the prior year. Service, body and parts same store sales declined 2.7 percent compared to the prior year.

Sid DeBoer, Lithia's CEO, said, "Our fourth quarter results were impacted by weak new vehicle sales at our Chrysler stores. This was caused by the delay in the release of new products, like the 2010 Ram heavy-duty pickup, and lower advertising and incentive spending by Chrysler, which slowed floor traffic. In response, we focused on increasing used vehicle sales at the affected locations. We also improved new vehicle sales of our other brands. Excluding Chrysler, we had approximately 18.5 percent new vehicle same store sales growth over the fourth quarter of 2008. On an adjusted basis, we were profitable in the fourth quarter, despite significant headwinds."

For the full year 2009, total sales declined $1.7 billion as compared to $2.1 billion in 2008. Same store new vehicle sales decreased 23.6 percent, retail used vehicle sales increased 3.1 percent and service, body and parts sales decreased 3.3 percent.

Lithia ended the year with $74.2 million in immediately available funds, including $12.8 million in cash, $25.7 million in availability on its revolving credit facility, and $35.7 million in unfloored new vehicle inventory. At Dec. 31, 2009, Lithia was in compliance with all debt covenants, and has no mortgage maturities until 2011.