MEDFORD, Ore.--(BUSINESS WIRE)--Lithia Motors, Inc. (NYSE: LAD - News) announced today that net income from continuing operations in the second quarter of 2009 was $4.1 million or nineteen cents per diluted share, compared to net loss from continuing operations of $201.2 million, or $10.02 per diluted share in the second quarter of 2008. As disclosed in the attached financial tables, excluding impairment charges and gains on extinguishment of debt, net income from continuing operations in the second quarter of 2009 was nineteen cents per share, compared to net income from continuing operations of ten cents per share in the second quarter of 2008.
Second quarter 2009 revenue from continuing operations totaled $402 million, compared to $532 million in the year-ago period, driven primarily by lower new vehicle sales. Same store retail new vehicle sales declined 36.8% while retail used vehicle sales increased 2.3% when compared to the same quarter last year. Service, body and parts same store sales declined 5.2% compared to the same quarter of last year.
Sid DeBoer, Lithias Chairman and CEO, commented: The restructuring plan we initiated in the second quarter of 2008 is proving to be successful. Despite a new vehicle automotive market that is at historic lows, and the impact of the reorganization of both Chrysler and General Motors, Lithia is profitable. We have focused on improving gross margins and used vehicle retail sales throughout the year and are pleased with our results. We continue to right-size our organization to match industry sales volumes and performance objectives. SG&A as a percentage of gross profit declined by 730 basis points, from 86.8% in the first quarter of 2009 to 79.5% in the second quarter of 2009.
For the six-month period ending June 30, 2009, total sales declined 27% to $769 million as compared to $1.05 billion in the same period last year. Same store new vehicle sales decreased 37.8%, retail used vehicle sales decreased 4.4% and service, body and parts sales decreased 5.5%. For the first six months, Lithias income from continuing operations, net of tax, and excluding asset impairment charges and gains on debt retirements was eighteen cents per share as compared to nine cents per share in 2008.
Jeff DeBoer, Senior Vice President and CFO, added: We have generated $74.3 million in cash flows from operations in 2009. Including the effects of floorplan repayments classified as financing activities in the statement of cash flows, adjusted cash flows from operations were $48.8 million for the year to date period. We are using these proceeds and cash generated from financing and asset sales to pay down debt and strengthen the balance sheet. We remain in compliance with all debt covenants at the end of the quarter.
The first quarter conference call may be accessed at 2:00 p.m. Pacific Time today by phone at (800) 254-5933 Conference ID: 19480043. A playback of the conference call will be available after 5 p.m. Pacific Time July 30, 2009 through August 6, 2009 by calling (800) 642-1687 access code: 19480043.
Lithia Motors, Inc. is a Fortune 700 Company, selling 27 brands of new and all brands of used vehicles at 88 stores, which are located in 13 states. Internet sales are centralized at www.Lithia.com. Lithia also sells used vehicles; arranges finance, warranty, and credit insurance contracts; and provides vehicle parts, maintenance, and repair services at all of its locations.
For additional information on Lithia Motors, contact the Investor Relations Department: (541) 776-6591 or log-on to: www.lithia.com – go to Investor Relations