Lithia Motors(LAD) - 2025 Q1 - Quarterly Results

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].