Lithia & Driveway (LAD) Reports Record First Quarter Revenue of $9.2 billion, Achieves 35% Increase in Diluted Earnings Per Share, 25% Increase in Adjusted Diluted Earnings Per Share
Lithia & Driveway (LAD) reported record first quarter 2025 results with revenue increasing 7% to $9.2 billion from $8.6 billion in Q1 2024. The company achieved a 35% increase in diluted earnings per share to $7.94, while adjusted diluted EPS rose 25% to $7.66.
Net income grew 28% to $211 million, with adjusted net income up 20% to $204 million. Key highlights include a 3.6% increase in new retail units on a same-store basis, improved used retail performance, and 7.5% growth in aftersales gross profit. Driveway Finance originated $623 million in loans.
LAD expanded its network with two Subaru store acquisitions in Virginia and California, adding $180 million in expected annualized revenue. The company increased its quarterly dividend by 4% to $0.55 per share and repurchased approximately 403,000 shares at an average price of $326.
Lithia & Driveway (LAD) ha riportato risultati record nel primo trimestre 2025 con ricavi in aumento del 7%, raggiungendo 9,2 miliardi di dollari rispetto agli 8,6 miliardi del primo trimestre 2024. L'azienda ha registrato un incremento del 35% nell'utile diluito per azione, arrivando a 7,94 dollari, mentre l'utile diluito rettificato per azione è cresciuto del 25%, attestandosi a 7,66 dollari.
L'utile netto è aumentato del 28%, raggiungendo 211 milioni di dollari, con l'utile netto rettificato in crescita del 20%, a 204 milioni di dollari. Tra i principali risultati spiccano un incremento del 3,6% delle nuove unità retail a parità di punti vendita, un miglioramento nelle performance del settore usato e una crescita del 7,5% del margine lordo post-vendita. Driveway Finance ha erogato prestiti per 623 milioni di dollari.
LAD ha ampliato la propria rete acquisendo due concessionarie Subaru in Virginia e California, con un incremento previsto dei ricavi annualizzati di 180 milioni di dollari. La società ha aumentato il dividendo trimestrale del 4%, portandolo a 0,55 dollari per azione, e ha riacquistato circa 403.000 azioni a un prezzo medio di 326 dollari.
Lithia & Driveway (LAD) reportó resultados récord en el primer trimestre de 2025 con ingresos que aumentaron un 7%, alcanzando los 9.200 millones de dólares frente a los 8.600 millones del primer trimestre de 2024. La compañía logró un incremento del 35% en las ganancias diluidas por acción, llegando a 7,94 dólares, mientras que las ganancias diluidas ajustadas por acción subieron un 25%, hasta 7,66 dólares.
El ingreso neto creció un 28%, alcanzando los 211 millones de dólares, con un ingreso neto ajustado que aumentó un 20%, hasta 204 millones de dólares. Entre los aspectos destacados se encuentran un aumento del 3,6% en nuevas unidades minoristas en tiendas comparables, una mejora en el desempeño del sector de usados y un crecimiento del 7,5% en la ganancia bruta de postventa. Driveway Finance originó préstamos por 623 millones de dólares.
LAD amplió su red con la adquisición de dos concesionarios Subaru en Virginia y California, añadiendo 180 millones de dólares en ingresos anualizados esperados. La empresa incrementó su dividendo trimestral en un 4%, hasta 0,55 dólares por acción, y recompró aproximadamente 403.000 acciones a un precio promedio de 326 dólares.
Lithia & Driveway (LAD)는 2025년 1분기에 매출이 7% 증가하여 92억 달러를 기록하며 2024년 1분기 86억 달러에서 기록적인 실적을 보고했습니다. 회사는 희석 주당순이익이 35% 증가한 7.94달러를 달성했으며, 조정 희석 주당순이익은 25% 상승한 7.66달러를 기록했습니다.
순이익은 28% 증가한 2억 1,100만 달러였으며, 조정 순이익은 20% 상승한 2억 400만 달러를 기록했습니다. 주요 성과로는 동일 점포 기준 신차 소매 단위가 3.6% 증가했고, 중고차 소매 실적이 개선되었으며, 애프터세일즈 총이익이 7.5% 성장한 점이 포함됩니다. Driveway Finance는 6억 2,300만 달러의 대출을 실행했습니다.
LAD는 버지니아와 캘리포니아에 위치한 두 개의 Subaru 매장을 인수하며 네트워크를 확장했으며, 연간 예상 매출이 1억 8천만 달러 증가했습니다. 회사는 분기 배당금을 4% 인상하여 주당 0.55달러로 조정했으며, 평균 주당 326달러에 약 40만 3천 주를 자사주 매입했습니다.
Lithia & Driveway (LAD) a annoncé des résultats records pour le premier trimestre 2025, avec un chiffre d'affaires en hausse de 7 % à 9,2 milliards de dollars contre 8,6 milliards au premier trimestre 2024. La société a enregistré une augmentation de 35 % du bénéfice dilué par action, atteignant 7,94 dollars, tandis que le bénéfice dilué ajusté par action a progressé de 25 %, pour s'établir à 7,66 dollars.
Le bénéfice net a augmenté de 28 % pour atteindre 211 millions de dollars, le bénéfice net ajusté ayant progressé de 20 % à 204 millions de dollars. Parmi les faits marquants figurent une hausse de 3,6 % des nouvelles unités de vente au détail sur une base comparable, une amélioration des performances du secteur de l'occasion et une croissance de 7,5 % de la marge brute après-vente. Driveway Finance a accordé 623 millions de dollars de prêts.
LAD a élargi son réseau avec l'acquisition de deux concessions Subaru en Virginie et en Californie, ajoutant 180 millions de dollars de revenus annuels attendus. La société a augmenté son dividende trimestriel de 4 % à 0,55 dollar par action et a racheté environ 403 000 actions à un prix moyen de 326 dollars.
Lithia & Driveway (LAD) meldete Rekordergebnisse für das erste Quartal 2025 mit einem Umsatzanstieg von 7 % auf 9,2 Milliarden US-Dollar gegenüber 8,6 Milliarden US-Dollar im ersten Quartal 2024. Das Unternehmen erzielte einen Anstieg des verwässerten Gewinns je Aktie um 35 % auf 7,94 US-Dollar, während der bereinigte verwässerte Gewinn je Aktie um 25 % auf 7,66 US-Dollar stieg.
Der Nettogewinn wuchs um 28 % auf 211 Millionen US-Dollar, der bereinigte Nettogewinn stieg um 20 % auf 204 Millionen US-Dollar. Zu den wichtigsten Highlights zählen ein Anstieg der neuen Einzelhandelseinheiten um 3,6 % auf vergleichbarer Ladenbasis, eine verbesserte Leistung im Gebrauchtwagenverkauf und ein Wachstum des Bruttogewinns im After-Sales-Bereich um 7,5 %. Driveway Finance vergab Kredite in Höhe von 623 Millionen US-Dollar.
LAD erweiterte sein Netzwerk durch den Erwerb von zwei Subaru-Filialen in Virginia und Kalifornien, was einen erwarteten jährlichen Umsatzanstieg von 180 Millionen US-Dollar mit sich bringt. Das Unternehmen erhöhte seine Quartalsdividende um 4 % auf 0,55 US-Dollar je Aktie und kaufte etwa 403.000 Aktien zu einem Durchschnittspreis von 326 US-Dollar zurück.
- Record Q1 revenue of $9.2 billion, up 7% YoY
- 35% increase in diluted EPS to $7.94
- Net income grew 28% to $211 million
- 3.6% increase in new retail units same-store sales
- 7.5% growth in aftersales gross profit
- Strategic expansion with two Subaru dealership acquisitions
- 4% dividend increase to $0.55 per share
- Strong liquidity position with $1.4 billion available
- Used retail unit sales still negative at -0.4%
- Unrealized losses on Pinewood Technologies investment impacted EPS by $0.27
Insights
LAD delivered exceptional Q1 results with 35% EPS growth, record revenue, operational improvements, and increased shareholder returns through buybacks and dividends.
Lithia & Driveway's first quarter 2025 financial performance showcases exceptional growth across all key metrics. The company achieved record Q1 revenue of
The company's operational metrics reveal robust underlying business momentum. New vehicle retail units increased
LAD's financing arm continues to scale effectively, with Driveway Finance originating
The company's strategic expansion continued with two Subaru dealership acquisitions expected to add
From a capital allocation perspective, LAD maintained strong financial flexibility with
Announces Increased Dividend of
First quarter 2025 revenue increased
First quarter 2025 diluted earnings per share attributable to LAD was
First quarter 2025 net income was
As shown in the attached non-GAAP reconciliation tables, the 2025 first quarter adjusted results exclude a
Key First Quarter 2025 Highlights:
- Total revenues increased
7% compared to first quarter 2024 - New retail units increased
3.6% on a same-store basis compared to first quarter 2024 - Used retail unit growth improved from -
4.3% to -0.4% on a sequential same-store basis - Aftersales gross profit increased
7.5% on a same-store basis compared to first quarter 2024 - Driveway Finance Corporation (DFC) originated
$623 million $4.1 billion 4.6% - Repurchased
1.7% of outstanding shares
"Our strong first quarter performance reflects the power of our integrated ecosystem and the disciplined execution of the Lithia & Driveway strategy by our teams," said Bryan DeBoer, President and CEO. "We achieved profitable growth year over year in each month this quarter as we grew market share and drove operating efficiencies across our network and adjacencies. Our diverse business model allows us to be agile in a dynamic market, and we remain focused on delivering consistent, high-quality experiences across every channel throughout 2025 and beyond."
Corporate Development
In January 2025, LAD continued to expand its network in the Mid-Atlantic region with the acquisition of the Stohlman Subaru store in
In March 2025, LAD continued to strengthen its density in the Southwest region with the acquisition of the Elk Grove Subaru store in
Year-to-date, we have acquired
Balance Sheet Update
LAD ended the first quarter with approximately
Dividend Payment and Share Repurchases
The Board of Directors approved an increased dividend of
During the first quarter 2025, we repurchased approximately 403,000 shares at a weighted average price of
First Quarter Earnings Conference Call and Updated Presentation
The first quarter 2025 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 2025 results has been added to our investor relations website. To listen live on our website or for replay, visit investors.lithiadriveway.com and click on quarterly earnings.
About Lithia & Driveway (LAD)
Lithia & Driveway (NYSE: LAD) is the largest global automotive retailer providing a wide array of products and services throughout the vehicle ownership lifecycle. Simple, convenient, and transparent experiences are offered through our comprehensive network of physical locations, e-commerce platforms, captive finance solutions, fleet management offerings, and other synergistic adjacencies. We deliver consistent, profitable growth in a massive and unconsolidated industry. Our highly diversified and competitively differentiated design provides us the flexibility and scale to pursue our vision to modernize personal transportation solutions wherever, whenever and however consumers desire.
Sites
www.lithia.com
investors.lithiadriveway.com
www.lithiacareers.com
www.driveway.com
www.greencars.com
www.drivewayfinancecorp.com
Lithia & Driveway on Facebook
https://www.facebook.com/LithiaMotors
https://www.facebook.com/DrivewayHQ
Lithia & Driveway on X
https://x.com/lithiamotors
https://x.com/DrivewayHQ
https://x.com/GreenCarsHQ
Lithia & Driveway on LinkedIn
https://www.linkedin.com/company/lithia-motors/
Lithia & Driveway on YouTube
https://www.youtube.com/@Lithia_Motors/featured
Forward-Looking Statements
Certain statements in this presentation, 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 "project," "outlook," "target," "may," "will," "would," "should," "seek," "expect," "plan," "intend," "forecast," "anticipate," "believe," "estimate," "predict," "potential," "likely," "ensure," "goal," "strategy," "future," "maintain," and "continue" or the negative of these terms or other comparable terms. Examples of forward-looking statements in this presentation include, among others, statements regarding:
- Future market conditions, including anticipated car and other sales and gross profit levels and the supply of inventory
- Our business strategy and plans, including our achieving our long-term financial targets
- The growth, expansion, make-up and success of our network, including our finding accretive acquisitions that meet our target valuations and acquiring additional stores
- Annualized revenues from acquired stores or achieving target returns
- The growth and performance of our Driveway e-commerce home solution and Driveway Finance Corporation (DFC), their synergies and other impacts on our business and our ability to meet Driveway and DFC-related targets
- The impact of sustainable vehicles and other market and regulatory changes on our business, including evolving vehicle distribution models
- Our capital allocations and uses and levels of capital expenditures in the future
- Expected operating results, such as improved store performance, continued improvement of selling, general and administrative expenses as a percentage of gross profit and any projections
- Our anticipated financial condition and liquidity, including from our cash and the future availability of our credit facilities, unfinanced real estate and other financing sources
- Our continuing to purchase shares under our share repurchase program
- Our compliance with financial and restrictive covenants in our credit facilities and other debt agreements
- Our programs and initiatives for team member recruitment, training, and retention
- Our strategies and targets for customer retention, growth, market position, operations, 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 national and local economic and financial conditions, including as a result of inflation, governmental programs and spending, and public health issues
- The market for dealerships, including the availability of stores to us for an acceptable price
- Changes in customer demand and the electric vehicle landscape and the impact of evolving digital technologies
- Changes in our relationship with, and the financial and operational stability of, OEMs and other suppliers, and vehicle delivery models
- Changes in the competitive landscape, including through technology and our ability to deliver new products, services and customer experiences and a portfolio of in-demand and available vehicles
- Risks associated with our indebtedness, including available borrowing capacity, interest rates, compliance with financial covenants and ability to refinance or repay indebtedness on favorable terms
- The adequacy of our cash flows and other conditions which may affect our ability to fund capital expenditures, obtain favorable financing and pay our quarterly dividend at planned levels
- Disruptions to our technology network including computer systems, as well as natural events such as severe weather or man-made or other disruptions of our operating systems, facilities or equipment
- Government regulations and legislation
- The risks 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 in "Part II, Item 1A. Risk Factors" of our Quarterly Reports on Form 10-Q, and from time to time in our other filings with the SEC.
Any forward-looking statement made by us in this presentation 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.
Non-GAAP Financial Measures
This presentation contains non-GAAP financial measures, which may include adjusted net income, adjusted net income attributable to LAD, adjusted net income attributable to non-controlling interests, adjusted net income attributable to redeemable non-controlling interest, adjusted diluted earnings per share attributable to LAD, adjusted SG&A, adjusted SG&A as a percentage of revenue and gross profit, adjusted operating income, adjusted net cash provided by operating activities, adjusted income before income taxes, adjusted income tax (provision) benefit, adjusted operating profit as a percentage of revenue and gross profit, adjusted pre-tax margin and net profit margin, EBITDA, adjusted EBITDA and net debt. 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.
LAD Consolidated Statements of Operations (Unaudited) (In millions except per share data)
| |||||
Three months ended | % | ||||
Increase | |||||
2025 | 2024 | (Decrease) | |||
Revenues: | |||||
New vehicle retail | $ 4,380.2 | $ 4,014.1 | 9.1 % | ||
Used vehicle retail | 2,919.1 | 2,800.8 | 4.2 | ||
Used vehicle wholesale | 331.0 | 337.7 | (2.0) | ||
Finance and insurance | 364.3 | 340.6 | 7.0 | ||
Aftersales | 979.1 | 912.8 | 7.3 | ||
Fleet and other | 204.6 | 155.8 | 31.3 | ||
Total revenues | 9,178.3 | 8,561.8 | 7.2 % | ||
Cost of sales: | |||||
New vehicle retail | 4,102.8 | 3,718.8 | 10.3 | ||
Used vehicle retail | 2,729.2 | 2,618.1 | 4.2 | ||
Used vehicle wholesale | 332.6 | 338.7 | (1.8) | ||
Aftersales | 417.6 | 410.8 | 1.7 | ||
Fleet and other | 185.7 | 140.2 | 32.5 | ||
Total cost of sales | 7,767.9 | 7,226.6 | 7.5 | ||
Gross profit | 1,410.4 | 1,335.2 | 5.6 % | ||
Finance operations income (loss) | 12.5 | (1.7) | NM | ||
SG&A expense | 952.7 | 934.3 | 2.0 | ||
Depreciation and amortization | 63.9 | 57.8 | 10.6 | ||
Income from operations | 406.3 | 341.4 | 19.0 % | ||
Floor plan interest expense | (57.1) | (60.7) | (5.9) | ||
Other interest expense | (65.5) | (63.6) | 3.0 | ||
Other income | 0.8 | 3.5 | (77.1) | ||
Income before income taxes | 284.5 | 220.6 | 29.0 % | ||
Income tax expense | (73.3) | (55.6) | 31.8 | ||
Income tax rate | 25.8 % | 25.2 % | |||
Net income | $ 211.2 | $ 165.0 | 28.0 % | ||
Net income attributable to non-controlling interests | (1.7) | (1.5) | 13.3 % | ||
Net income attributable to redeemable non-controlling interest | — | (0.9) | (100.0) % | ||
Net income attributable to LAD | $ 209.5 | $ 162.6 | 28.8 % | ||
Diluted earnings per share attributable to LAD: | |||||
Net income per share | $ 7.94 | $ 5.89 | 34.8 % | ||
Diluted shares outstanding | 26.4 | 27.6 | (4.3) % | ||
NM - not meaningful | |||||
LAD Key Performance Metrics (Unaudited)
| |||||
Three months ended | % | ||||
Increase | |||||
2025 | 2024 | (Decrease) | |||
Gross margin | |||||
New vehicle retail | 6.3 % | 7.4 % | (110) bps | ||
Used vehicle retail | 6.5 | 6.5 | — | ||
Finance and insurance | 100.0 | 100.0 | — | ||
Aftersales | 57.3 | 55.0 | 230 | ||
Gross profit margin | 15.4 | 15.6 | (20) | ||
Unit sales | |||||
New vehicle retail | 91,990 | 85,683 | 7.4 % | ||
Used vehicle retail | 107,326 | 102,436 | 4.8 | ||
Average selling price | |||||
New vehicle retail | $ 47,616 | $ 46,848 | 1.6 % | ||
Used vehicle retail | 27,198 | 27,342 | (0.5) | ||
Average gross profit per unit | |||||
New vehicle retail | $ 3,016 | $ 3,447 | (12.5) % | ||
Used vehicle retail | 1,769 | 1,783 | (0.8) | ||
Finance and insurance | 1,828 | 1,811 | 0.9 | ||
Total vehicle(1) | 4,164 | 4,346 | (4.2) | ||
Revenue mix | |||||
New vehicle retail | 47.7 % | 46.9 % | |||
Used vehicle retail | 31.8 | 32.7 | |||
Used vehicle wholesale | 3.6 | 3.9 | |||
Finance and insurance, net | 4.0 | 4.0 | |||
Aftersales | 10.7 | 10.7 | |||
Fleet and other | 2.2 | 1.8 | |||
Gross Profit Mix | |||||
New vehicle retail | 19.7 % | 22.1 % | |||
Used vehicle retail | 13.5 | 13.7 | |||
Used vehicle wholesale | (0.1) | (0.1) | |||
Finance and insurance, net | 25.8 | 25.5 | |||
Aftersales | 39.8 | 37.6 | |||
Fleet and other | 1.3 | 1.2 | |||
Adjusted | As reported | ||||||
Three months | Three months | ||||||
Other metrics | 2025 | 2024 | 2025 | 2024 | |||
SG&A as a % of revenue | 10.5 % | 10.8 % | 10.4 % | 10.9 % | |||
SG&A as a % of gross profit | 68.2 | 69.4 | 67.5 | 70.0 | |||
Operating profit as a % of revenue | 4.3 | 4.1 | 4.4 | 4.0 | |||
Operating profit as a % of gross profit | 28.2 | 26.1 | 28.8 | 25.6 | |||
Pretax margin | 3.0 | 2.7 | 3.1 | 2.6 | |||
Net profit margin | 2.2 | 2.0 | 2.3 | 1.9 | |||
(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 |
LAD Same Store Operating Highlights (Unaudited)
| |||||
Three months ended | % | ||||
Increase | |||||
2025 | 2024 | (Decrease) | |||
Revenues | |||||
New vehicle retail | $ 4,166.6 | $ 3,940.7 | 5.7 % | ||
Used vehicle retail | 2,658.4 | 2,683.6 | (0.9) | ||
Finance and insurance | 345.0 | 333.6 | 3.4 | ||
Aftersales | 913.0 | 891.5 | 2.4 | ||
Total revenues | 8,543.2 | 8,332.5 | 2.5 | ||
Gross profit | |||||
New vehicle retail | $ 264.9 | $ 290.4 | (8.8) % | ||
Used vehicle retail | 181.1 | 180.3 | 0.4 | ||
Finance and insurance | 345.0 | 333.6 | 3.4 | ||
Aftersales | 528.0 | 491.1 | 7.5 | ||
Total gross profit | 1,333.7 | 1,310.0 | 1.8 | ||
Gross margin | |||||
New vehicle retail | 6.4 % | 7.4 % | (100) bps | ||
Used vehicle retail | 6.8 | 6.7 | 10 | ||
Finance and insurance | 100.0 | 100.0 | — | ||
Aftersales | 57.8 | 55.1 | 270 | ||
Gross profit margin | 15.6 | 15.7 | (10) | ||
Unit sales | |||||
New vehicle retail | 86,964 | 83,927 | 3.6 % | ||
Used vehicle retail | 96,462 | 96,850 | (0.4) | ||
Average selling price | |||||
New vehicle retail | $ 47,912 | $ 46,954 | 2.0 % | ||
Used vehicle retail | 27,559 | 27,709 | (0.5) | ||
Average gross profit per unit | |||||
New vehicle retail | $ 3,046 | $ 3,460 | (12.0) % | ||
Used vehicle retail | 1,877 | 1,861 | 0.9 | ||
Finance and insurance | 1,881 | 1,845 | 2.0 | ||
Total vehicle(1) | 4,301 | 4,445 | (3.2) | ||
(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 |
LAD Other Highlights (Unaudited)
| |||
Three months ended March 31, | |||
2025 | |||
Key Performance by Country | Total Revenue | Total Gross Profit | |
77.0 % | 82.7 % | ||
20.2 % | 15.0 % | ||
2.8 % | 2.3 % | ||
As of | |||||
March 31, | December 31, | March 31, | |||
Days' Supply(1) | 2025 | 2024 | 2024 | ||
New vehicle inventory | 43 | 59 | 44 | ||
Used vehicle inventory | 45 | 53 | 44 | ||
(1) Days' supply in inventory is calculated using on-ground inventory unit levels and a 30-day total unit sales volumes, both at the end of each reporting period. |
Selected Financing Operations Financial Information
| |||||||
Three months ended March 31, | |||||||
($ in millions) | 2025 | % (1) | 2024 | % (1) | |||
Interest and fee income | $ 94.4 | 9.4 | $ 77.3 | 9.0 | |||
Interest expense | (48.1) | (4.8) | (47.8) | (5.6) | |||
Total interest margin | $ 46.3 | 4.6 | $ 29.5 | 3.5 | |||
Lease income | 20.5 | 15.2 | |||||
Lease costs | (16.8) | (10.8) | |||||
Lease income, net | 3.7 | 4.4 | |||||
Provision expense | (25.5) | (2.5) | (25.0) | (2.9) | |||
Other financing operations expenses | (12.0) | (10.6) | |||||
Finance operations income (loss) | $ 12.5 | $ (1.7) | |||||
Total average managed finance receivables | $ 4,062.1 | $ 3,436.6 | |||||
(1) Annualized percentage of total average managed finance receivables |
LAD Condensed Consolidated Balance Sheets (Unaudited) (In millions)
| |||
March 31, 2025 | December 31, 2024 | ||
Cash, restricted cash, and cash equivalents | $ 430.3 | $ 402.2 | |
Trade receivables, net | 1,399.2 | 1,237.0 | |
Inventories, net | 5,749.0 | 5,911.7 | |
Other current assets | 222.2 | 223.0 | |
Total current assets | $ 7,800.7 | $ 7,773.9 | |
Property and equipment, net | 4,661.5 | 4,629.9 | |
Finance receivables, net | 4,047.5 | 3,868.2 | |
Intangibles | 5,139.6 | 4,665.8 | |
Other non-current assets | 1,830.9 | 2,184.8 | |
Total assets | $ 23,480.2 | $ 23,122.6 | |
Floor plan notes payable | 4,904.9 | 4,903.1 | |
Other current liabilities | 1,711.8 | 1,648.0 | |
Total current liabilities | $ 6,616.7 | $ 6,551.1 | |
Long-term debt, less current maturities | 5,961.9 | 6,119.3 | |
Non-recourse notes payable, less current maturities | 2,299.9 | 2,051.2 | |
Other long-term liabilities and deferred revenue | 1,819.5 | 1,726.9 | |
Total liabilities | $ 16,698.0 | $ 16,448.5 | |
Equity | 6,782.2 | 6,674.1 | |
Total liabilities and equity | $ 23,480.2 | $ 23,122.6 | |
LAD Condensed Consolidated Statements of Cash Flows (Unaudited) (In millions)
| |||
Three months ended March 31, | |||
Cash flows from operating activities: | 2025 | 2024 | |
Net income | $ 211.2 | $ 165.0 | |
Adjustments to reconcile net income to net cash provided by operating activities | 146.9 | 127.0 | |
Changes in: | |||
Inventories | 186.4 | (183.3) | |
Finance receivables | (179.1) | (173.8) | |
Floor plan notes payable | 23.3 | 327.7 | |
Other operating activities | (66.6) | 29.8 | |
Net cash provided by operating activities | 322.1 | 292.4 | |
Cash flows from investing activities: | |||
Capital expenditures | (68.7) | (79.6) | |
Cash paid for acquisitions, net of cash acquired | (84.5) | (1,074.4) | |
Proceeds from sales of stores | 43.2 | 6.4 | |
Other investing activities | (7.1) | (118.3) | |
Net cash used in investing activities | (117.1) | (1,265.9) | |
Cash flows from financing activities: | |||
Net (repayments) borrowings on floor plan notes payable, non-trade | (44.0) | 156.1 | |
Net borrowings non-recourse notes payable | 254.4 | 125.9 | |
Net (repayments) borrowings of other debt and finance lease liabilities | (159.7) | 201.8 | |
Proceeds from issuance of common stock | 5.6 | 5.7 | |
Repurchase of common stock | (143.4) | (15.0) | |
Dividends paid | (13.9) | (13.8) | |
Other financing activity | (72.0) | (15.7) | |
Net cash (used in) provided by financing activities | (173.0) | 445.0 | |
Effect of exchange rate changes on cash and restricted cash | 0.3 | (3.0) | |
Change in cash, restricted cash, and cash equivalents | 32.3 | (531.5) | |
Cash, restricted cash, and cash equivalents at beginning of period | 445.8 | 972.0 | |
Cash, restricted cash, and cash equivalents at end of period | 478.1 | 440.5 | |
LAD Reconciliation of Non-GAAP Cash Flow from Operations (Unaudited) (In millions)
| |||
Three months ended March 31, | |||
Net cash provided by operating activities | 2025 | 2024 | |
As reported | $ 322.1 | $ 292.4 | |
Floor plan notes payable, non-trade, net | (44.0) | 156.1 | |
Adjust: finance receivables activity | 179.1 | 173.8 | |
Less: Borrowings on floor plan notes payable, non-trade associated with acquired new vehicle inventory | (9.9) | (71.7) | |
Adjusted | $ 447.3 | $ 550.6 | |
LAD Reconciliation of Certain Non-GAAP Financial Measures (Unaudited) (In millions, except for per share data)
| |||||||||||
Three Months Ended March 31, 2025 | |||||||||||
As reported | Net gain on | Insurance | Acquisition | Tax attribute | Adjusted | ||||||
Selling, general and administrative | $ 952.7 | $ 9.4 | $ (0.4) | $ (0.2) | $ — | $ 961.5 | |||||
Operating income | 406.3 | (9.4) | 0.4 | 0.2 | — | 397.5 | |||||
Income before income taxes | 284.5 | (9.4) | 0.4 | 0.2 | — | 275.7 | |||||
Income tax (provision) benefit | (73.3) | 2.4 | (0.1) | — | (1.0) | (72.0) | |||||
Net income | $ 211.2 | $ (7.0) | $ 0.3 | $ 0.2 | $ (1.0) | $ 203.7 | |||||
Net income attributable to non-controlling interests | (1.7) | — | — | — | — | (1.7) | |||||
Net income attributable to LAD | $ 209.5 | $ (7.0) | $ 0.3 | $ 0.2 | $ (1.0) | $ 202.0 | |||||
Diluted earnings per share attributable to LAD | $ 7.94 | $ (0.25) | $ 0.01 | $ — | $ (0.04) | $ 7.66 | |||||
Diluted share count | 26.4 | ||||||||||
Three Months Ended March 31, 2024 | |||||
As reported | Acquisition | Adjusted | |||
Selling, general and administrative | $ 934.3 | $ (7.7) | $ 926.6 | ||
Operating income | 341.4 | 7.7 | 349.1 | ||
Income before income taxes | 220.6 | 7.7 | 228.3 | ||
Income tax (provision) benefit | (55.6) | (1.6) | (57.2) | ||
Net income | $ 165.0 | $ 6.1 | $ 171.1 | ||
Net income attributable to non-controlling interests | (1.5) | — | (1.5) | ||
Net income attributable to redeemable non-controlling interest | (0.9) | — | (0.9) | ||
Net income attributable to LAD | $ 162.6 | $ 6.1 | $ 168.7 | ||
Diluted earnings per share attributable to LAD | $ 5.89 | $ 0.22 | $ 6.11 | ||
Diluted share count | 27.6 | ||||
LAD Adjusted EBITDA and Net Debt to Adjusted EBITDA (Unaudited) (In millions)
| |||||
Three months ended March 31, | % | ||||
Increase | |||||
2025 | 2024 | (Decrease) | |||
EBITDA and Adjusted EBITDA | |||||
Net income | $ 211.2 | $ 165.0 | 28.0 % | ||
Flooring interest expense | 57.1 | 60.7 | (5.9) | ||
Other interest expense | 65.5 | 63.6 | 3.0 | ||
Financing operations interest expense | 48.1 | 47.8 | 0.6 | ||
Income tax expense | 73.3 | 55.6 | 31.8 | ||
Depreciation and amortization | 63.9 | 57.8 | 10.6 | ||
EBITDA | $ 519.1 | $ 450.5 | 15.2 % | ||
Other adjustments: | |||||
Less: flooring interest expense | $ (57.1) | $ (60.7) | (5.9) | ||
Less: financing operations interest expense | (48.1) | (47.8) | 0.6 | ||
Less: used vehicle line of credit interest | (3.0) | (6.2) | (51.6) | ||
Add: acquisition expenses | 0.2 | 7.7 | (97.4) | ||
Less: gain on disposal of stores | (9.4) | — | NM | ||
Add: insurance reserves | 0.4 | — | NM | ||
Adjusted EBITDA | $ 402.1 | $ 343.5 | 17.1 % | ||
NM - not meaningful | |||||
As of | % | |||
March 31, | Increase | |||
Net Debt to Adjusted EBITDA | 2025 | 2024 | (Decrease) | |
Floor plan notes payable | (1.2) % | |||
Used and service loaner vehicle inventory financing facility | 968.7 | 912.7 | 6.1 | |
Revolving lines of credit | 1,563.3 | 1,610.5 | (2.9) | |
Warehouse facilities | 768.5 | 636.0 | 20.8 | |
Non-recourse notes payable | 2,363.7 | 1,831.5 | 29.1 | |
400.0 | 400.0 | — | ||
550.0 | 550.0 | — | ||
800.0 | 800.0 | — | ||
Finance leases and other debt | 1,009.7 | 880.6 | 14.7 | |
Unamortized debt issuance costs | (24.1) | (30.2) | (20.2) | |
Total debt | $ 13,304.7 | $ 12,553.1 | 6.0 % | |
Less: Floor plan related debt | $ (5,873.6) | $ (5,874.7) | — % | |
Less: Financing operations related debt | (3,132.2) | (2,467.5) | 26.9 | |
Less: Unrestricted cash and cash equivalents | (234.4) | (264.5) | (11.4) | |
Less: Marketable securities | (53.7) | — | — | |
Less: Availability on used vehicle and service loaner financing facilities | (24.3) | (31.7) | (23.3) | |
Net Debt | 1.8 % | |||
TTM Adjusted EBITDA | (4.7) % | |||
Net debt to Adjusted EBITDA | 2.47 x | 2.31 x | ||
NM - not meaningful | ||||
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SOURCE Lithia Motors, Inc.
FAQ
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