Investor Presentation Updated 04/23/2025 APRIL 2025 Disclosure 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", "fore ...

Financial Data and Key Metrics Changes - The company reported diluted earnings per share of $7.94, a 34.8% increase year-over-year, and adjusted diluted earnings of $7.66, a 25.4% increase, marking the first quarterly year-over-year adjusted earnings increase since Q4 2022 [7][10]. - Total revenues grew to a record $9.2 billion, a 7% increase from Q1 of the previous year [10]. - Adjusted SG&A as a percentage of gross profit was 68.2%, a 120 basis point decline from the prior year [42]. Business Line Data and Key Metrics Changes - New vehicle units increased by 3.6% year-over-year, while total unit sales increased by 1.5% [33]. - After-sales gross profit increased by 7.5%, with warranty work showing a 19.7% year-over-year increase [37][38]. - Financing operations delivered income of $12.5 million compared to a loss of $1.7 million in the same period last year [44]. Market Data and Key Metrics Changes - The company operates within one of the largest and least consolidated industries, with a current market share of just over 1% and a target of reaching 5% [24][17]. - The diversified omnichannel ecosystem spans retail, digital, and fleet channels across North America and the UK, with offerings ranging from new vehicles to twenty-year-old value autos [13]. Company Strategy and Development Direction - The focus for 2025 is on executing the strategy to build customer loyalty and expand market share, with a commitment to achieving $2 in EPS for every $1 billion in revenue [10][20]. - The company aims to maintain a balanced capital allocation strategy, targeting a minimum after-tax return of 15% on acquisitions [21][23]. - The strategy includes optimizing the network by acquiring larger automotive retail stores in profitable regions and leveraging digital channels [24][26]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustainable performance and capture market share despite potential tariff impacts [10][12]. - The management noted that the operational success is driven by store leaders' autonomy to adapt quickly to local demand [11][12]. - The company remains focused on disciplined cost management and enhancing efficiencies across the business [41][43]. Other Important Information - The company repurchased $146 million, or nearly 2% of its outstanding shares, at attractive valuations during the first quarter [23]. - The company ended the quarter with a net leverage of 2.5 times, in line with its long-term target [51]. Q&A Session Summary Question: Current tariff environment and its impact - Management noted that over 45% of inventory is not impacted by current tariffs, positioning the company favorably compared to peers [59]. - Inventory levels have decreased significantly, with a drop of almost ten days supply quarter-over-quarter [60]. Question: Communication with factory partners and M&A environment - There has been clear communication from manufacturers regarding pricing stability through the 2025 model year, with no major changes in the M&A environment noted [74]. Question: Expectations for front-end gross profit and market share - Management indicated that the design of the ecosystem allows for a potential upward price inflection rather than downward, with expectations for used vehicle gross profit to grow over time [80][82]. Question: Impact of tariffs on after-sales business - Management believes that most customers will need to repair their cars regardless of tariffs, minimizing the impact on the after-sales business [110][112]. Question: Capital allocation and acquisition targets - The company is targeting $2 billion in acquired revenues for the year, with ongoing evaluations of share repurchases and acquisitions [114].

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.It also includes access to the Zacks Style Scores. ...

Financial Performance - Lithia & Driveway reported record first quarter revenue of $9.2 billion, a 7% increase from $8.6 billion in Q1 2024[3]. - Diluted earnings per share increased by 35% to $7.94, up from $5.89 in the same period last year[4]. - Net income for Q1 2025 was $211 million, representing a 28% increase compared to $165 million in Q1 2024[5]. - Adjusted diluted earnings per share rose 25% to $7.66, compared to $6.11 in Q1 2024[4]. - New vehicle retail revenue increased by 5.7% to $4,166.6 million compared to $3,940.7 million in the same period last year[25]. - Total revenues rose by 2.5% to $8,543.2 million from $8,332.5 million year-over-year[25]. - Net income for the three months ended March 31, 2025, was $211.2 million, up from $165.0 million in the prior year[29]. - Adjusted EBITDA for Q1 2025 reached $402.1 million, representing a 17.1% increase from $343.5 million in Q1 2024[32]. Cash and Assets - Lithia & Driveway ended Q1 2025 with approximately $1.4 billion in cash and cash equivalents[12]. - Cash, restricted cash, and cash equivalents at the end of the period rose to $478.1 million from $440.5 million[29]. - Total assets increased to $23,480.2 million from $23,122.6 million as of December 31, 2024[28]. Debt and Financing - Total debt increased by 6.0% to $13,304.7 million as of March 31, 2025, compared to $12,553.1 million in the previous year[33]. - Net debt rose to $3,986.5 million, a 1.8% increase from $3,914.7 million in Q1 2024, with a net debt to adjusted EBITDA ratio of 2.47x compared to 2.31x in the prior year[33]. - The company reported a decrease in flooring interest expense to $57.1 million in Q1 2025 from $60.7 million in Q1 2024, showing improved financing conditions[32]. Operational Metrics - New retail units increased by 3.6% on a same-store basis compared to Q1 2024[11]. - Aftersales gross profit grew by 7.5% on a same-store basis compared to Q1 2024[11]. - Driveway Finance Corporation originated $623 million in loans, with a portfolio of $4.1 billion in average managed receivables[11]. - Days' supply for new vehicle inventory decreased to 43 days from 59 days year-over-year[26]. - Selling, general and administrative expenses for Q1 2025 were reported at $952.7 million, up from $934.3 million in Q1 2024[31]. - Operating income for Q1 2025 was $406.3 million, compared to $341.4 million in Q1 2024, reflecting a significant operational improvement[31]. Dividend and Shareholder Returns - The Board approved an increased dividend of $0.55 per share, a 4% increase from the previous dividend[13]. Future Outlook - Future outlook includes continued focus on market expansion and potential new product developments, although specific figures were not disclosed in the call[31].

Lithia Motors (LAD) came out with quarterly earnings of $7.66 per share, missing the Zacks Consensus Estimate of $7.77 per share. This compares to earnings of $6.11 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.42%. A quarter ago, it was expected that this auto dealership chain would post earnings of $7.01 per share when it actually produced earnings of $7.79, delivering a surprise of 11.13%.Over the last four quarters, t ...

Core Insights - Lithia & Driveway reported the highest first quarter revenue in company history, with a 7% increase to $9.2 billion compared to $8.6 billion in Q1 2024 [2][21] - Diluted earnings per share increased by 35% to $7.94 from $5.89 in the same period last year [3][23] - The company announced an increased dividend of $0.55 per share, a 4% increase, to be paid on May 23, 2025 [11] Financial Performance - First quarter 2025 net income was $211 million, a 28% increase from $165 million in Q1 2024 [4][22] - Adjusted net income for Q1 2025 was $204 million, a 20% increase compared to $171 million in Q1 2024 [4][38] - The company achieved a gross profit of $1.41 billion, reflecting a 5.6% increase from $1.34 billion in the previous year [21][22] Operational Highlights - The company acquired two stores in 2025, adding an expected annualized revenue of $180 million [8][9] - New retail units increased by 3.6% on a same-store basis compared to Q1 2024 [15] - Used retail unit growth improved from -4.3% to -0.4% on a sequential same-store basis [15] Balance Sheet and Cash Flow - Lithia & Driveway ended Q1 2025 with approximately $1.4 billion in cash and cash equivalents, along with marketable securities [10] - The company repurchased approximately 403,000 shares at a weighted average price of $326 during the first quarter [12] - Net cash provided by operating activities was $322.1 million, an increase from $294 million in Q1 2024 [35] Strategic Outlook - The company emphasized its integrated ecosystem and disciplined execution of strategy, focusing on profitable growth and market share expansion [7] - Lithia & Driveway aims to deliver consistent, high-quality experiences across all channels throughout 2025 and beyond [7]

Group 1 - Lithia & Driveway announced the transition of Adam Chamberlain from Executive Vice President and Chief Operating Officer to CEO of Mercedes-Benz USA effective June 1, 2025 [1] - Bryan DeBoer, President and CEO of Lithia & Driveway, expressed gratitude for Chamberlain's leadership and contributions, which strengthened operations and advanced the company's strategy [2] - The company emphasizes its mission of "Growth Powered by People," ensuring a strong leadership team with Regional Presidents and Vice Presidents reporting directly to the CEO [2] Group 2 - Lithia & Driveway is the largest global automotive retailer, offering a wide range of products and services throughout the vehicle ownership lifecycle [3] - The company aims to provide simple, convenient, and transparent experiences through a comprehensive network of physical locations and e-commerce platforms [3] - Lithia & Driveway focuses on consistent, profitable growth in a large and unconsolidated industry, leveraging its diversified and competitively differentiated design [3]

MEDFORD, Ore., April 1, 2025 /PRNewswire/ -- Lithia & Driveway (NYSE: LAD) today announced its first quarter 2025 earnings will be released before the market opens on Wednesday, April 23, 2025. A conference call to discuss the earnings results is scheduled for the same day at 10:00 a.m. Eastern Time. How to Participate The conference call may be accessed by telephone at (877) 407-8029. To listen live on our website, or for replay, visit investors.lithiadriveway.com and click on quarterly earnings. Lithia & ...

I started blogging about my journey to financial independence back in 2011. By living well below my means and intelligently investing my hard-earned capital, I went from below broke at age 27 to financially free at 33 years old. I regularly create content on dividend growth investing, living off of dividends, undervalued high- quality dividend growth stocks, high-yield situations, and other long-term investment opportunities. Founder of Dividend Mantra. Founder of Mr. Free At 33. Co-Founder of Dividends & I ...

Core Viewpoint - Lithia Motors, Inc. is actively expanding its market presence through strategic acquisitions, enhancing its revenue and market share in the automotive sector [1][3]. Acquisition Details - Lithia Motors acquired Elk Grove Subaru in Elk Grove, CA, to strengthen its footprint in the Sacramento area and the Southwest region [1]. - The acquisition is projected to generate $100 million in annual revenues, increasing Lithia's total year-to-date acquired annualized revenues to $180 million [2]. - In 2023, Lithia acquired $3.8 billion in annualized revenues, and in 2024, it further acquired over $5.9 billion in annualized revenues through multiple dealership acquisitions [3]. Financial Strategy - Lithia's board approved a $350 million increase to its share repurchase authorization, raising the total available for future buybacks to approximately $748 million [4]. - As of March 4, 2025, Lithia has repurchased over $71 million worth of shares, representing 0.75% of outstanding shares at an average price of $361 per share [4]. Market Position - Lithia currently holds a Zacks Rank of 3 (Hold), indicating a stable position in the market [5]. - Comparatively, other auto stocks like Geely Automobile Holdings Limited, Dana Incorporated, and Strattec Security Corporation are rated higher with a Zacks Rank of 1 (Strong Buy) [5]. Growth Estimates - The Zacks Consensus Estimate for Geely's fiscal 2025 indicates significant year-over-year growth of 66.62% in sales and 149.31% in earnings [6]. - Dana's 2025 earnings are expected to grow by 70.21% year-over-year, with improved EPS estimates for the next two fiscal years [6]. - Strattec's 2025 sales are projected to grow by 2.61%, with positive revisions in EPS estimates for the upcoming years [7].