SOURCE: Lithia Motors

Lithia Motors

April 22, 2015 07:29 ET

Lithia Motors Reports Adjusted EPS of $1.39 for First Quarter 2015; Revenues Increase 66%

Lithia Increases Dividend to $0.20 per Share for First Quarter

MEDFORD, OR--(Marketwired - Apr 22, 2015) -  Lithia Motors, Inc. (NYSE: LAD) reported the highest first quarter adjusted net income in Company history and increased adjusted net income from continuing operations 36% for the first quarter of 2015 over the prior year period.

2015 first quarter adjusted net income from continuing operations was $36.9 million, or $1.39 per diluted share. This compares to 2014 first quarter adjusted net income from continuing operations of $27.1 million, or $1.03 per diluted share.

Unadjusted net income from continuing operations for the first quarter of 2015 was $40.7 million, or $1.53 per diluted share, compared to $24.7 million, or $0.94 per diluted share, for the first quarter of 2014. As shown in the attached non-GAAP reconciliation tables, the 2015 first quarter per share adjusted results from continuing operations exclude a $0.09 benefit related to the gain on the sale of a store and a $0.05 benefit related to an equity investment. The 2014 first quarter per share adjusted results from continuing operations exclude a $0.09 expense related to an adjustment to a reserve associated with a lawsuit filed in 2006 and settled in 2013, a loss for a hailstorm in Texas and a reserve for a contract assumed in an acquisition.

First quarter 2015 revenue from continuing operations increased $711 million, or 66%, to $1.8 billion from $1.1 billion for the first quarter of 2014.

First Quarter-over-Quarter Operating Highlights:

  • Total same store sales increased 11%
  • New vehicle same store sales increased 11%
  • Used vehicle retail same store sales increased 11%
  • Service, body and parts same store sales increased 11%
  • Same store F&I per unit increased $52 to $1,233
  • Adjusted SG&A expense as a percentage of gross profit was 71.3%

"We delivered the best first quarter earnings in our Company's history, and the second best quarterly earnings ever," said Bryan DeBoer, President and CEO. "For the fourth consecutive quarter, we achieved double digit growth in same store sales in all business lines. On a continuing operations basis, we grew revenue 66% and adjusted net income 36% over the first quarter of 2014. We remain focused on capturing additional market share, improving existing store results, the continued success, integration and growth of DCH and actively seeking accretive acquisitions."

Chris Holzshu, SVP and CFO, said, "SG&A as a percentage of gross profit was 71.3% in the first quarter of 2015, slightly higher than the prior year due to the effect of the DCH acquisition, but better than our projection. We target improving SG&A as a percentage of gross profit as we integrate the 36 stores added in 2014. In the first quarter, incremental throughput, or the percentage of additional same store gross profit dollars that we retain after deducting incremental selling costs, was 45.1%. Our stores remain focused on maintaining incremental throughput of 45% to 50%, which will continue to lever our SG&A expense going forward."

Corporate Development
As previously announced, in January 2015, we opened Subaru of Clearlake, Texas. The store is a new franchise we were awarded from Subaru, which we estimate will contribute approximately $45 million in annual revenues.

Bryan DeBoer, President and CEO, stated, "The acquisition market is robust and we anticipate continued activity as independent dealers seek attractive exit strategies. We remain focused on pursuing accretive acquisitions and will continue to add locations to our portfolio in the future."

Balance Sheet Update
We ended the first quarter with $21 million in cash and $50 million in available credit from our credit facilities. Additionally, approximately $155 million of our operating real estate is currently unfinanced, which could provide an estimated additional $116 million in available liquidity, for total potential liquidity of $187 million.

Dividend Payment
Our Board of Directors has approved a 25% increase in our quarterly dividend to $0.20 per share related to first quarter 2015 financial results. We will pay the dividend May 29, 2015 to shareholders of record on May 15, 2015.

2015 Outlook
We project 2015 second quarter earnings of $1.55 to $1.59 per diluted share and 2015 full year earnings of $6.20 to $6.30 per diluted share. Both projections are based on the following annual assumptions:

Continuing Operations Projections

  • Total revenues of $7.5 to $7.7 billion
  • New vehicle sales increasing 43.5%
  • New vehicle gross margin of 5.9% to 6.1%
  • Used vehicle sales increasing 36.5%
  • Used vehicle gross margin of 12.6% to 12.8%
  • Service body and parts sales increasing 40.5%
  • Service body and parts gross margin of 48.8% to 49.0%
  • Finance and insurance gross profit of $1,180 per unit
  • Tax rate of 40.0%
  • Average diluted shares outstanding of 26.5 million
  • Full year capital expenditures are $100 million

Same Store Projections

  • Total revenues of $5.2 to $5.4 billion
  • New vehicle same store sales increasing 7.0%
  • Used vehicle same store sales increasing 10.5%
  • Service body and parts same store sales increasing 8.5%
  • Finance and insurance gross profit of $1,200 per unit

These projections exclude the impact of future acquisitions, dispositions and non-core items. Actual results may be affected by items described under Forward-Looking Statements below.

First Quarter Earnings Conference Call and Updated Presentation
The first quarter conference call may be accessed at 10:00 a.m. ET today by telephone at 877-407-8029. An updated presentation highlighting the first quarter results has been added to www.lithiainvestorrelations.com.

To listen live on our website or for replay, visit www.lithiainvestorrelations.com and click on webcasts.

About Lithia
Lithia Motors, Inc. is one of the largest automotive retailers in the United States. Lithia sells 30 brands of new vehicles and all brands of used vehicles at 130 stores in 14 states. Lithia also arranges finance, warranty, and credit insurance contracts; and provides vehicle parts, maintenance, and repair services at all of its locations.

Sites
www.lithia.com
www.lithiainvestorrelations.com
www.lithiacareers.com

Lithia Motors on Facebook
http://www.facebook.com/LithiaMotors

Lithia Motors on Twitter
http://twitter.com/lithiamotors

Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward looking statements include statements regarding our goals, plans, projections and guidance regarding our financial position, results of operations, market position, pending and potential future acquisitions and business strategy, and often contain words such as "project," "outlook," "expect," "anticipate," "intend," "plan," "believe," "estimate," "may," "seek," "would," "should," "likely," "goal," "strategy," "future," "maintain," "continue," "remain," "target" or "will" and similar references to future periods. Examples of forward-looking statements in this press release include, among others, statements regarding:

  • Future market conditions;
  • Expected operating results, such as improved store performance; maintaining incremental throughput between 45% and 50%; continued improvement of SG&A as a percentage of gross profit; generating second quarter earnings per share of $1.58 to 1.62 per diluted share and 2015 full year earnings of $6.20 to $6.30 per diluted share; and all projections set forth under the headings "2015 Outlook," "Continuing Operations Projections" and "Same Store Projections";
  • The increase in our annual revenues that we estimate will result from the dealership that we opened as set forth under the heading "Corporate Development";
  • Anticipated continued success, integration and growth of DCH;
  • Anticipated ability to capture additional market share; ability to find accretive acquisitions; and additions of dealership locations to the company's portfolio in the future;
  • Anticipated availability of liquidity from our unfinanced operating real estate; and
  • Anticipated levels of capital expenditures in the future.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events that depend on circumstances that may or may not occur in the future. 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 press release. 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), changes in customer demand, 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), 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. We urge you to carefully consider this information and not place undue reliance on forward-looking statements. We undertake no duty to update our forward-looking statements, including our earnings outlook, which are made as of the date of this release.

Non-GAAP Financial Measures
This press release and the attached financial tables contain non-GAAP financial measures such as adjusted net income and diluted earnings per share from continuing operations, adjusted SG&A as a percentage of revenues and gross profit, adjusted operating margin, adjusted operating profit as a percentage of gross profit, and adjusted pre-tax margin. Non-GAAP measures do not have definitions under GAAP and may be defined differently by and not comparable to similarly titled measures used by other companies. As a result, we review any non-GAAP financial measures in connection with a review of the most directly comparable measures calculated in accordance with GAAP. We caution you not to place undue reliance on such non-GAAP measures, but also to consider them with the most directly comparable GAAP measures. We present cash flows from operations in the attached tables, adjusted to include the change in non-trade floor plan debt to improve the visibility of cash flows related to vehicle financing. As required by SEC rules, we have reconciled these measures to the most directly comparable GAAP measures in the attachments to this release. We believe the non-GAAP financial measures we present improve the transparency of our disclosures; provide a meaningful presentation of our results from core business operations, because they exclude items not related to core business operations and other non-cash items; and improve the period-to-period comparability of our results from core business operations. These presentations should not be considered an alternative to GAAP measures.

   
   
Lithia Motors, Inc.  
Consolidated Statements of Operations (Unaudited)  
(In thousands except per share data)  
   
    Three months ended           %  
    March 31,     Increase     Increase  
    2015     2014     (Decrease)     (Decrease)  
Revenues:                              
New vehicle retail   $ 1,007,816     $ 579,522     $ 428,294     74.0 %
Used vehicle retail     462,931       301,893       161,038     53.3  
Used vehicle wholesale     62,208       42,693       19,515     45.7  
Finance and insurance     64,604       39,631       24,973     63.0  
Service, body and parts     173,475       104,617       68,858     65.8  
Fleet and other     18,144       9,750       8,394     86.1  
  Total revenues     1,789,178       1,078,106       711,072     66.0  
Cost of sales:                              
New vehicle retail     946,042       540,498       405,544     75.0  
Used vehicle retail     403,489       261,097       142,392     54.5  
Used vehicle wholesale     60,047       41,362       18,685     45.2  
Service, body and parts     89,036       53,785       35,251     65.5  
Fleet and other     17,189       9,303       7,886     84.8  
  Total cost of sales     1,515,803       906,045       609,758     67.3  
Gross profit     273,375       172,061       101,314     58.9  
Asset impairments     4,130       -       -     NM  
SG&A expense     191,618       121,829       69,789     57.3  
Depreciation and amortization     9,726       5,507       4,219     76.6  
Income from operations     67,901       44,725       23,176     51.8  
Floor plan interest expense     (4,649 )     (2,984 )     1665     55.8  
Other interest expense     (4,828 )     (1,974 )     (2,854 )   144.6  
Other income (expense), net     (368 )     937       (1,305 )   NM  
Income from continuing operations before income taxes     58,056       40,704       17,352     42.6  
Income tax expense     (17,403 )     (16,010 )     1,393     8.7  
Income tax rate     30.0 %     39.3 %              
Income from continuing operations   $ 40,653     $ 24,694     $ 15,959     64.6 %
Income from discontinued operations, net of tax     -       40       (40 )   NM  
Net income   $ 40,653     $ 24,734     $ 15,919     64.4 %
                               
Diluted net income per share:                              
Continuing operations   $ 1.53     $ 0.94     $ 0.59     62.8 %
Discontinued operations     -       -       -     -  
Net income per share   $ 1.53     $ 0.94     $ 0.59     62.8 %
                               
Diluted shares outstanding     26,519       26,320       199     0.8 %
                               
NM - Not meaningful
 
 
   
Lithia Motors, Inc.  
Key Performance Metrics (Unaudited)  
   
    Three months ended           %  
    March 31,     Increase     Increase  
    2015     2014     (Decrease)     (Decrease)  
Gross margin                              
New vehicle retail     6.1 %     6.7 %     (60) bps        
Used vehicle retail     12.8       13.5       (70) bps        
Used vehicle wholesale     3.5       3.1       40 bps        
Finance and insurance     100.0       100.0       - bps        
Service, body and parts     48.7       48.6       10 bps        
Fleet and other     5.3       4.6       70 bps        
Gross profit margin     15.3       16.0       (70) bps        
                               
Unit sales                              
New vehicle retail     30,623       17,274       13,349     77.3 %
Used vehicle retail     24,204       16,316       7,888     48.3  
Total retail units sold     54,827       33,590       21,237     63.2  
Used vehicle wholesale     9,144       5,853       3,291     56.2  
                               
Average selling price                              
New vehicle retail     32,910       33,549       (639 )   (1.9) %
Used vehicle retail     19,126       18,503       623     3.4  
Used vehicle wholesale     6,803       7,294       (491 )   (6.7 )
                               
Average gross profit per unit                              
New vehicle retail   $ 2,017     $ 2,259     $ (242 )   (10.7) %
Used vehicle retail     2,456       2,500       (44 )   (1.8 )
Used vehicle wholesale     236       227       9     4.0  
Finance and insurance     1,178       1,180       (2 )   (0.2 )
Total vehicle(1)     3,429       3,596       (167 )   (4.6 )
                               
Revenue mix                              
New vehicle retail     56.3 %     53.8 %              
Used vehicle retail     25.9       28.0                
Used vehicle wholesale     3.5       3.9                
Finance and insurance, net     3.6       3.7                
Service, body and parts     9.7       9.7                
Fleet and other     1.0       0.9                
                               
                               
             
   
Adjusted
   
As reported
 
 
 
 
 
Three months ended
March 31,
    Three months ended
March 31,
 
Other metrics   2015     2014     2015     2014  
SG&A as a % of revenue   10.9 %   10.9 %   10.7 %   11.3 %
SG&A as a % of gross profit   71.3     68.5     70.1     70.8  
Operating profit as a % of revenue   3.8     4.5     3.8     4.1  
Operating profit as a % of gross profit   25.1     28.3     24.8     26.0  
Pretax margin   3.4     4.1     3.2     3.8  
Net profit margin   2.1     2.5     2.3     2.3  
                         
 (1) - includes the sales and gross profit related to new, used retail, used wholesale and finance and insurance and unit sales for new and used retail
 
 
   
Lithia Motors, Inc.  
Same Store Operating Highlights (Unaudited)  
   
    Three months ended         %  
    March 31,   Increase     Increase  
    2015   2014   (Decrease)     (Decrease)  
Revenues                          
New vehicle retail   $ 639,501   $ 574,540   $ 64,961     11.3 %
Used vehicle retail     333,300     300,115     33,185     11.1  
Used vehicle wholesale     45,055     42,649     2,406     5.6  
Finance and insurance     44,136     39,355     4,781     12.1  
Service, body and parts     115,325     104,000     11,325     10.9  
Fleet and other     12,302     9,750     2,552     26.2  
Total revenues   $ 1,189,619   $ 1,070,409   $ 119,210     11.1  
                           
Gross profit                          
New vehicle retail   $ 40,245   $ 38,638   $ 1,607     4.2 %
Used vehicle retail     44,847     40,583     4,264     10.5  
Used vehicle wholesale     1,687     1,334     353     26.5  
Finance and insurance     44,136     39,355     4,781     12.1  
Service, body and parts     55,844     50,514     5,330     10.6  
Fleet and other     777     447     330     73.8  
Total gross profit   $ 187,536   $ 170,871   $ 16,665     9.8  
                           
Gross margin                          
New vehicle retail     6.3     % 6.7     % (40) bps        
Used vehicle retail     13.5     13.5     - bps        
Used vehicle wholesale     3.7     3.1     60 bps        
Finance and insurance     100.0     100.0     - bps        
Service, body and parts     48.4     48.6     (20) bps        
Fleet and other     6.3     4.6     170 bps        
Gross profit margin     15.8     16.0     (20) bps        
                           
Unit sales                          
New vehicle retail     18,567     17,109     1,458     8.5 %
Used vehicle retail     17,237     16,204     1,033     6.4  
Total retail units sold     35,804     33,313     2,491     7.5  
Used vehicle wholesale     5,986     5,848     138     2.4  
                           
Average selling price                          
New vehicle retail   $ 34,443   $ 33,581   $ 862     2.6 %
Used vehicle retail     19,336     18,521     815     4.4  
Used vehicle wholesale     7,549     7,293     256     3.5  
                           
Average gross profit per unit                          
New vehicle retail   $ 2,168   $ 2,258   $ (90 )   (4.0) %
Used vehicle retail     2,602     2,505     97     3.9  
Used vehicle wholesale     283     228     55     24.1  
Finance and insurance     1,233     1,181     52     4.4  
Total vehicle(1)     3,656     3,599     57     1.6  
                           
(1) - includes the sales and gross profit related to new, used retail, used wholesale and finance and insurance and unit sales for new and used retail
 
 
   
Lithia Motors, Inc.  
Segment Operating Highlights (Unaudited)  
   
    Three months ended           %  
    March 31,     Increase     Increase  
    2015     2014     (Decrease)     (Decrease)  
Revenues                              
Domestic   $ 691,404     $ 568,930     $ 122,474     21.5 %
Import     758,638       351,061       407,577     116.1  
Luxury     336,922       158,611       178,311     112.4  
Total segment revenues   $ 1,786,964     $ 1,078,602     $ 708,362     65.7  
Corporate and other     2,214       (496 )     2,710     546.4  
Total revenues   $ 1,789,178     $ 1,078,106     $ 711,072     66.0  
                               
Segment Income(1)                              
Domestic   $ 27,129     $ 22,421     $ 4,708     21.0 %
Import     16,100       9,265       6,835     73.8  
Luxury     5,899       2,185       3,714     170.0  
Total segment income   $ 49,128       33,871       15,257     45.0  
Corporate and other     8,928       6,833       2,095     30.7  
Income from continuing operations before income taxes   $ 58,056     $ 40,704     $ 17,352     42.6  
                               
(1) Segment income is defined as operating income less floor plan interest expense  
                               
Retail New Vehicle Unit Sales                              
Domestic     10,043       8,634       1,409     16.3 %
Import     16,774       7,139       9,635     135.0  
Luxury     3,865       1,595       2,270     142.3  
Total     30,682       17,368       13,314     76.7  
Allocated to management     (59 )     (94 )     (35 )   (37.2 )
Total retail new vehicle unit sales     30,623       17,274       13,349     77.3  
                               
                               
 
Lithia Motors, Inc.
Other Highlights (Unaudited)
 
    As of
    March 31,   December 31,   March 31,
    2015   2014   2014
Days Supply(1)            
New vehicle inventory   62   62   69
Used vehicle inventory   49   53   46
             
(1) Days supply calculated based on current inventory levels, excluding in-transit vehicles, and a 30-day historical cost of sales level.
 
 
         
Financial covenants        
    Requirement   As of March 31, 2014
Current ratio   Not less than 1.10 to 1   1.21 to 1
Fixed charge coverage ratio   Not less than 1.20 to 1   3.15 to 1
Leverage ratio   Not more than 5.00 to 1   2.19 to 1
Funded debt restriction   Not more than $600 million   $417.4 million
         
         
   
Lithia Motors, Inc.  
Other Highlights (Unaudited)  
   
    Three months ended
March 31,
 
    2015     2014  
New vehicle unit sales brand mix            
Honda, Acura   21.9 %   7.8 %
Chrysler   19.1     29.5  
Toyota   18.9     13.7  
General Motors   8.9     14.0  
Subaru   7.2     9.8  
BMW, MINI   5.8     6.0  
Ford   4.6     6.0  
Nissan   4.0     3.8  
Volkswagen, Audi   2.8     2.3  
Hyundai   2.1     3.1  
Mercedes   1.6     2.3  
Kia   1.3     0.9  
Lexus   1.2     -  
Other   0.6     0.8  
       
    Three months ended
March 31,
 
    2015     2014  
Revenue geographic mix            
California   22.2 %   13.3 %
Oregon   16.8     22.2  
Texas   15.7     23.9  
New Jersey   13.7     -  
Montana   5.8     8.3  
Washington   5.1     7.3  
Alaska   5.1     6.7  
Nevada   3.2     4.8  
Idaho   3.1     4.7  
Iowa   2.8     4.3  
New York   2.7     -  
North Dakota   1.5     2.2  
Hawaii   1.4     0.7  
New Mexico   0.9     1.6  
       
    As of April 22, 2015  
Current store count mix   # of stores     % of total  
Chrysler, Fiat   25     19.2 %
Honda, Acura   21     16.2  
Toyota, Lexus   19     14.6  
General Motors   16     12.3  
BMW, MINI   11     8.5  
Volkswagen, Audi   8     6.2  
Nissan   6     4.6  
Ford   6     4.6  
Subaru   6     4.6  
Hyundai   5     3.8  
Mercedes   3     2.3  
Other   4     3.1  
             
             
   
Lithia Motors, Inc.  
Consolidated Balance Sheets (Unaudited)  
(In thousands)  
             
    March 31, 2015     December 31, 2014  
Cash and cash equivalents   $ 21,023     $ 29,898  
Trade receivables, net     290,638       295,379  
Inventories, net     1,286,614       1,249,659  
Other current assets     32,498       32,010  
Assets held for sale     4,026       8,563  
Total current assets   $ 1,634,799     $ 1,615,509  
                 
Property and equipment, net     828,707       816,745  
Goodwill     199,286       199,375  
Franchise value     150,856       150,892  
Other non-current assets     110,737       98,411  
Total assets   $ 2,924,385     $ 2,880,932  
                 
Floor plan notes payable   $ 42,139     $ 41,047  
Floor plan notes payable: non trade     1,113,428       1,137,632  
Current maturities of long-term debt     40,543       31,912  
Trade payables     76,517       70,853  
Accrued liabilities     154,786       153,661  
Deferred income taxes     3,140       2,603  
Liabilities related to assets held for sale     2,688       4,892  
Total current liabilities   $ 1,433,241     $ 1,442,600  
                 
Long-term debt     621,890       609,066  
Deferred revenue     56,849       54,403  
Deferred income taxes     41,474       42,795  
Other long-term liabilities     63,094       58,963  
Total liabilities   $ 2,216,548     $ 2,207,827  
                 
Class A common stock     272,625       276,058  
Class B common stock     319       319  
Additional paid-in capital     31,364       29,775  
Accumulated other comprehensive loss     (787 )     (926 )
Retained earnings     404,316       367,879  
Total liabilities & stockholders' equity   $ 2,924,385     $ 2,880,932  
                 
                 
   
Lithia Motors, Inc.  
Summarized Cash Flow from Operations (Unaudited)  
(In thousands)  
   
    Three months ended  
    March 31,  
    2015     2014  
Net income   $ 40,653     $ 24,734  
                 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:                
Asset impairment     4,130       -  
Depreciation and amortization     9,726       5,507  
Stock-based compensation     2,727       1,538  
Loss on disposal of assets     8       20  
Gain on sale of franchise     (3,349 )     -  
Deferred income taxes     3,863       1,866  
Excess tax benefit from share-based payment arrangements     (4,733 )     (5,846 )
(Increase) decrease:                
  Trade receivables, net     7,569       (12,259 )
  Inventories     (39,460 )     (56,748 )
  Other assets     (2,078 )     (2,290 )
Increase (decrease):                
  Floor plan notes payable, net     1,092       1,675  
  Trade payables     6,799       1,774  
  Accrued liabilities     4,444       12,521  
  Other long-term liabilities and deferred revenue     6,838       5,121  
Net cash provided by (used in) operating activities   $ 38,229     $ (22,387 )
                 
                 
   
Lithia Motors, Inc.  
Reconciliation of Non-GAAP Cash Flow from Operations (Unaudited)  
(In thousands)  
   
    Three months ended  
    March 31,  
Net cash provided by (used in) operating activities   2015     2014  
As reported   $ 38,229     $ (22,387 )
  Floor plan notes payable, non-trade, net     (21,984 )     51,783  
  Borrowings on floor plan notes payable associated with acquired inventory     -       (19,525 )
Adjusted   $ 16,245     $ 9,871  
                 
                 
   
Lithia Motors, Inc.  
Reconciliation of Certain Non-GAAP Financial Measures (Unaudited)  
(In thousands, except for per share data)  
   
     Three Months Ended March 31, 2015  
    As reported     Gain on sale of stores     Equity Investment     Adjusted  
Asset impairments   $ 4,130     $ -     $ (4,130 )   $ -  
Selling, general and administrative     191,618       3,349       -       194,967  
                                 
Income from operations     67,901       (3,349 )     4,130       68,682  
                                 
Other income (expense)     (368 )     -       1,732       1,364  
                                 
Income from continuing operations before income taxes   $ 58,056     $ (3,349 )   $ 5,862     $ 60,569  
Income tax expense     (17,403 )     1,004       (7,250 )     (23,649 )
Net income from continuing operations   $ 40,653     $ (2,345 )   $ (1,388 )   $ 36,920  
                                 
Diluted earnings per share from continuing operations   $ 1.53     $ (0.09 )   $ (0.05 )   $ 1.39  
Diluted share count     26,519                        
                                 
                                 
             
    Three Months Ended March 31, 2014  
    As reported     Reserve adjustments     Adjusted  
Selling, general and administrative     121,829       (3,931 )     117,898  
                         
Income from operations     44,725       3,931       48,656  
                         
Income from continuing operations before income taxes   $ 40,704     $ 3,931     $ 44,635  
Income tax expense     (16,010 )     (1,546 )     (17,556 )
Net income from continuing operations   $ 24,694     $ 2,385     $ 27,079  
                         
Diluted earnings per share from continuing operations   $ 0.94     $ 0.09     $ 1.03  
Diluted share count     26,320                  
                         
                         

Contact Information

  • Contact:
    John North
    VP Finance and Chief Accounting Officer
    (541) 618-5748