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Old 10-29-2008, 01:13 PM   #1
XDCX
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Default Lithia's stock is up 62% on yesterday's Earnings Announcement

There's no question that Lithia's stock has been pounded for the past year, but I'm happy to see that it's surging 62% today in response to yesterday's Earnings Announcement.

Although Lithia reported a Third Quarter loss due to one time charges they were able to report a profit from on-going operations.

Most important, they reported that they have lowered their outstanding debt level to a point where they will be able to meet any future credit roll-overs with existing credit lines.

They also indicated that they have increased the number of dealerships that they will sell/close from 14 to 29. Of the 29 stores they've targeted they have already completed 11 transactions and have 6 others pending contract.

I also thought it was interesting that they were still able to gross $1,143 per vehicle in F&I, reporting a finance penetration of 72%, service contract penetration of 42% and Lifetime Oil Change penetration of 34%.

The only surprise in the Conference Call was during the Q&A session where one analyst asked jokingly if they had filed bankruptcy. That's probably not a question that most CEOs would want to see in the Conference Call transcript.
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Old 10-29-2008, 04:28 PM   #2
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Default Lithia finished the day up 123%

I'm impressed to see that Lithia closed the day up 123% - that's a nice return if you're long the stock.

Perhaps it was short covering? It will be interesting to watch the price action for the next few days.
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Old 10-29-2008, 07:50 PM   #3
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That analyst is so crazy! He made some comments on a couple previous conference calls.
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Old 10-30-2008, 10:11 AM   #4
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Quote:
Originally Posted by SHACOS View Post
That analyst is so crazy! He made some comments on a couple previous conference calls.
It seemed like the LAD Management Team handled the question well, essentially laughing it off and returning to serious questions.

That said, when your stock is down 90+% I doubt that you want anyone to be making joking references to bankruptcy during your Conference Call.
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