Core Viewpoint - America's Car-Mart, Inc. is working to complete omitted disclosures related to loan modifications for customers facing financial difficulties, which will be included in its Annual Report on Form 10-K for the fiscal year ended April 30, 2025 [1][3] Group 1: Disclosure Requirements - The company identified the need to include disclosures related to loan modifications in accordance with Financial Accounting Standards Board Accounting Standards Codification (ASC) 310-10-50-42 through 50-44 [3] - The company determined that its previously issued financial statements contain material omissions of required disclosures under these ASC provisions [3][4] Group 2: Specific Omissions - Required disclosures include qualitative and quantitative information about the types of modifications utilized, total period-end amortized cost basis of modified receivables, and the percentage of modifications made to debtors experiencing financial difficulty [4] - The financial effect of modifications by type, including changes to contractual terms and the incremental effect of principal forgiveness, was also omitted [4] - Performance of receivables in the 12 months following a modification for debtors experiencing financial difficulty was not disclosed [4] Group 3: Internal Control and Reporting - The company identified deficiencies in its internal control over financial reporting related to the omitted disclosures and expects to report material weaknesses in its Form 10-K [5] - Management determined that certain previously issued financial statements should no longer be relied upon due to the omission of loan modification information [6] - The affected periods include quarterly reports for fiscal years 2024 and 2025 through January 31, 2025, and the annual report for fiscal year 2024 [6] Group 4: Impact on Financial Statements - The additional disclosures required will not affect the accuracy of the company's previously reported financial results, including earnings, balance sheet, cash flows, or shareholder equity [7][9] - The company plans to report the omitted loan modification disclosures for the non-reliance periods in its Form 10-K [7] Group 5: Filing and Compliance - The company is working to complete the necessary disclosures and will file its Form 10-K as soon as practicable [8] - The company expects to receive a notice from Nasdaq regarding non-compliance with timely filing requirements, but does not anticipate an immediate effect on the listing or trading of its common stock [10] Group 6: Company Overview - America's Car-Mart operates automotive dealerships in 12 states and is one of the largest publicly held automotive retailers in the U.S., focusing on the "Integrated Auto Sales and Finance" segment of the used car market [11]

Core Insights - Penske Automotive Group reported a record gross profit of $1.3 billion, reflecting a 3% increase year-over-year [1] - The company achieved a 4% increase in earnings before taxes to $337 million and a 5% increase in earnings per share to $3.78 [1] - Revenue remained flat at $7.7 billion compared to the same period in 2024, with net income attributable to common stockholders increasing by 4% to $250 million [1][3] Financial Performance - For the second quarter of 2025, total revenue was $7.7 billion, unchanged from the previous year, while net income rose to $250 million from $241.2 million [1][3] - Earnings per share increased to $3.78 from $3.61, driven by a positive impact from foreign currency exchange of $136.6 million [1][3] - For the first half of 2025, revenue increased by 1% to $15.3 billion, with net income rising 8% to $494.3 million [3][4] Retail Automotive Operations - Retail automotive same-store revenue decreased by 1%, with new vehicle sales down 2% and used vehicle sales down 1% [5][6] - Retail automotive gross profit increased by 3% to $1.1 billion, driven by a 9% increase in service and parts revenue [6][7] - Total new units delivered decreased by 6%, while used units delivered decreased by 16% [4][20] Retail Commercial Truck Dealerships - Retail commercial truck revenue increased by 6% to $943.6 million, with retail unit sales rising 2% [8][19] - For the first half of 2025, revenue from retail commercial trucks increased by 5% to $1.8 billion [8][19] Penske Transportation Solutions - Penske Transportation Solutions recorded earnings of $53.5 million for the second quarter, up from $52.9 million in the previous year [9] - The company operates a managed fleet of over 414,000 trucks, tractors, and trailers [9] Share Repurchase and Capital Allocation - The company repurchased 885,272 shares of common stock in the first half of 2025, representing approximately 1.3% of its outstanding shares [10] - As of June 30, 2025, the company had approximately $2.3 billion in liquidity, including $155 million in cash [10] Corporate Developments - The company completed the acquisition of a Ferrari dealership in Italy, expected to generate annualized revenue of $40 million [11] - The Board of Directors approved a 4.8% increase in the quarterly dividend to $1.32 per share, marking the 19th consecutive quarterly increase [11]

Core Insights - Carvana's primary sources of operating cash flows include retail and wholesale vehicle sales, originated loans, and complementary products, while cash uses involve inventory purchases, personnel expenses, and customer acquisition costs [1] Financial Performance - In 2024, Carvana generated $918 million in cash from operating activities, up from $803 million in 2023, marking a $115 million year-over-year increase driven by improved operating performance and a $274 million reduction in interest paid due to higher paid-in-kind (PIK) interest [2][10] - The company reported record annual revenues and significant profitability milestones in 2024, with expectations for sequential growth in retail units sold and adjusted EBITDA in the second quarter [3] Financing Activities - Carvana also generates cash through financing activities, which totaled $261 million in 2024, down from $868 million in 2023, reflecting strategic shifts in financing [4][10] - Historically, these financing activities have supported the company's growth and market expansion, a trend expected to continue [4] Market Performance - Carvana's stock has outperformed the Zacks Internet – Commerce industry, with shares surging 65.4% year-to-date compared to the industry's growth of 11.4% [8] Valuation - From a valuation perspective, Carvana appears overvalued, trading at a forward price/sales ratio of 3.46, higher than the industry's 2.17 [12] EPS Estimates - The Zacks Consensus Estimate for 2025 and 2026 EPS has increased by 5 cents and 8 cents, respectively, in the past week [14]

Core Viewpoint - Asbury Automotive Group held its Second Quarter 2025 Earnings Call, discussing financial results and future expectations [2][3]. Group 1: Company Overview - The call featured key participants including David Hult (President and CEO), Dan Clara (COO), and Michael Welch (CFO) [1][3]. - The press release detailing the second quarter results was made available on the company's investor relations website [3]. Group 2: Financial Performance - The earnings call is expected to include forward-looking statements regarding financial projections and forecasts, which are subject to uncertainties [4].

Financial Data and Key Metrics Changes - The company generated $4.4 billion in revenue, with a gross profit of $752 million and a gross profit margin of 17.2% [11] - Adjusted operating margin was 5.8%, and adjusted earnings per share (EPS) was $7.43, with adjusted EBITDA at $256 million [12][19] - Adjusted net income for the quarter was $146 million, with a non-cash deferral headwind of $0.43 per share due to TCA [19][20] Business Line Data and Key Metrics Changes - Same store revenue for new vehicles increased by 9% year over year, with units up by 7% and average gross profit per vehicle at $3,611 [12][12] - Used vehicle unit volume decreased by 4% year over year, with retail gross profit per unit at $17,290, marking the fourth quarter of sequential growth [13][14] - Parts and service gross profit increased by 7%, with a gross profit margin of 59.2% and a fixed absorption rate over 100% [16][17] Market Data and Key Metrics Changes - The same store new day supply was 59 days at the end of June, while the used day supply of inventory was 37 days [12][14] - The company noted strong demand in the second quarter, although a decline was observed as the quarter progressed due to tariff impacts [8] Company Strategy and Development Direction - The company is focused on integrating the Herb Chambers acquisition and optimizing its portfolio by divesting nine stores, which generated proceeds of $250 million to $270 million [11][25] - The transition to Techeon is a key investment aimed at improving operational efficiency and guest experience, with full conversion expected by 2027 [10][60] - The company aims to reduce leverage over the next 12 to 18 months while remaining opportunistic with share repurchases [11][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing the resilience of the automotive retail business despite potential headwinds from tariffs and market conditions [81][82] - The company anticipates that the second half of the year will depend heavily on tariff decisions and their impact on consumer pricing [8][19] Other Important Information - The average age of passenger cars on the road is 14.5 years, indicating a strong potential for service growth in the parts and service business [18] - The company has a transaction-adjusted net leverage ratio of 2.46 times, which is expected to be above the target range following the Chambers acquisition [23][24] Q&A Session Summary Question: Can you walk through the cadence of GPU and units as the quarter progressed? - Management noted that GPUs started strong but adjusted as the quarter progressed, with expectations for GPUs to fall into the $2,500 to $3,000 range [27][30] Question: What initiatives are keeping SG&A under control? - The focus is on productivity per employee and maintaining discipline on headcount, with some costs related to Techeon conversion impacting the SG&A numbers [34][35] Question: What opportunities for improvement exist with the Herb Chambers acquisition? - Management highlighted the luxury mix and market presence of Herb Chambers, indicating potential for operational efficiencies and improved metrics [39][41] Question: How does the company plan to maintain parts and service growth amid tougher comparisons? - Management expressed confidence in maintaining mid-single-digit growth in parts and service, despite anticipated headwinds from warranty work [42][45] Question: What is the strategy regarding used GPUs and inventory? - The strategy remains focused on maximizing gross profit rather than volume, with continuous assessment of market conditions [54][56] Question: What are the implementation costs for Techeon? - Implementation costs for Techeon were approximately $2 million in the quarter, split between duplication and third-party audit costs [62]

Core Insights - Lithia Motors reported revenue of $9.58 billion for the quarter ended June 2025, reflecting a 3.8% increase year-over-year and a surprise of +0.52% over the Zacks Consensus Estimate of $9.53 billion [1] - Earnings per share (EPS) reached $10.24, compared to $7.87 in the same quarter last year, resulting in an EPS surprise of +4.7% against the consensus estimate of $9.78 [1] Financial Performance Metrics - New vehicle retail unit sales were 94,144, below the three-analyst average estimate of 98,009 [4] - Used vehicle retail unit sales totaled 109,053, also below the three-analyst average estimate of 112,524 [4] - The average selling price for new vehicles was $47,782, compared to the average estimate of $48,329.15 [4] - The average selling price for used vehicles was $28,379, exceeding the three-analyst average estimate of $27,338.08 [4] - Fleet and other revenue was $209.5 million, below the five-analyst average estimate of $241.66 million, representing a year-over-year decline of -13.1% [4] - Finance and insurance revenue was $373.8 million, slightly below the average estimate of $388.18 million, but showed a year-over-year increase of +3.6% [4] - Used vehicle wholesale revenue reached $383.1 million, surpassing the five-analyst average estimate of $338.23 million, marking a +32.3% year-over-year increase [4] - Used vehicle retail revenue was $3.09 billion, matching the five-analyst average estimate, with a year-over-year increase of +3.6% [4] - Service, body and parts/aftersales revenue was $1.02 billion, aligning with the average estimate [4] - New vehicle revenue was $4.5 billion, below the five-analyst average estimate of $4.78 billion, reflecting a +2.2% year-over-year increase [4] - Same store operating metrics for service, body and parts/aftersales revenue were $998 million, exceeding the two-analyst average estimate of $903.52 million, with a +28.3% year-over-year change [4] - Same store operating metrics for finance and insurance revenue were $366 million, slightly below the two-analyst average estimate of $368.42 million, showing a +16.7% year-over-year increase [4] Stock Performance - Lithia Motors' shares have returned -9.1% over the past month, contrasting with the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported record revenue of $9.6 billion for the second quarter, reflecting a 4% year-over-year same-store revenue increase [6][12] - Diluted earnings per share (EPS) increased by 29% year-over-year, reaching $9.87, with an adjusted EPS of $10.24, marking a 2530% increase year-over-year [5][6] - Adjusted EBITDA for the second quarter was $489 million, a 20% increase year-over-year [26] Business Line Data and Key Metrics Changes - Same-store aftersales gross profit grew by 8.5% year-over-year, with gross profit margin widening to 57.8%, a 180 basis point increase from last year [20][21] - Financing operations income more than doubled year-over-year from $7 million to $20 million, supported by a 50 basis point expansion in net interest margin to 4.6% [24][25] - New vehicle units increased by 2% year-over-year, while used vehicle units increased by 4% year-over-year [18][19] Market Data and Key Metrics Changes - The company noted a 50% same-store sales improvement in value auto sales compared to last year [19] - The UK market showed a 3% year-over-year profitability increase, indicating resilience despite challenging industry conditions [36] Company Strategy and Development Direction - The company aims to scale high-margin adjacencies and deepen customer relationships while maintaining capital discipline [7][12] - Strategic acquisitions remain a core pillar of growth, targeting $2 to $4 billion in annual revenue from acquisitions [14][70] - The company is focused on improving store performance and expanding its digital reach to grow U.S. market share from 1.1% to 5% [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to grow profitably and take market share, despite pressures from lower gross profit units (GPUs) [7][12] - The evolving tariff landscape and broader consumer trends are being monitored closely [7] - Management highlighted the importance of operational efficiency and cost control in navigating current market conditions [23][24] Other Important Information - Over 60% of the company's net profit comes from aftersales operations, indicating a diversified earnings stream [8][21] - The company repurchased 3% of its outstanding shares in the first half of the year, with plans to continue aggressive buybacks [15][28] Q&A Session Summary Question: Can you discuss SG&A to gross profit leverage? - Management acknowledged the need for operational improvements and emphasized the focus on driving growth and productivity [34][35] Question: How is the UK market performing? - The UK operations showed a 3% year-over-year profitability increase, with effective cost management in place [36][37] Question: How does the U.S. SG&A look? - The U.S. business continues to perform well on the SG&A front, with ongoing focus on cost control [41][42] Question: What is the outlook for DFC growth? - DFC is on a growth trajectory, with expectations for continued strong performance in the coming quarters [48][49] Question: How much of the aftersales growth is due to last year's issues? - Over 50% of the stronger same-store sales growth in aftersales can be attributed to lapping last year's CDK issues [75] Question: How will tariffs impact pricing? - Management indicated that manufacturers are already adapting to mitigate tariff impacts, and the company is well-positioned to manage these changes [98][100]

Financial Data and Key Metrics Changes - The company generated $4.4 billion in revenue for Q2 2025, with a gross profit of $752 million and a gross profit margin of 17.2% [11] - Adjusted operating margin was reported at 5.8%, with adjusted earnings per share (EPS) at $7.43 and adjusted EBITDA at $256 million [12][19] - Adjusted net income for the quarter was $146 million, with a non-cash deferral headwind of $0.43 per share due to TCA [19][20] Business Line Data and Key Metrics Changes - Same store revenue for new vehicles increased by 9% year over year, with units sold up by 7% and average gross profit per vehicle at $3,611 [12][13] - Used vehicle unit volume decreased by 4% year over year, but used retail gross profit per unit increased to $17,290, marking the fourth quarter of sequential growth [13][14] - Parts and service gross profit increased by 7%, with a gross profit margin of 59.2% and a fixed absorption rate over 100% [16][17] Market Data and Key Metrics Changes - The same store new day supply was 59 days at the end of June, while the used day supply of inventory was 37 days [12][14] - The company noted strong performance in the Stellantis brand, with a 15.6% increase in volume compared to a national sales decline of 11.5% [12][13] Company Strategy and Development Direction - The company is focusing on integrating the Herb Chambers acquisition and optimizing its portfolio by divesting nine stores, which generated proceeds of $250 million to $270 million [11][25] - The transition to Techeon is a key investment aimed at improving operational efficiency and guest experience, with full conversion expected by 2027 [10][62] - The company aims to reduce leverage over the next 12 to 18 months while remaining opportunistic with share repurchases [11][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, despite potential headwinds from tariffs and market conditions, emphasizing the resilience of the automotive retail business [81][72] - The company anticipates that the second half of the year will depend heavily on tariff decisions and consumer pricing [8][19] - Management highlighted the importance of maintaining productivity per employee to control SG&A expenses amid potential volume declines [34][35] Other Important Information - The average age of passenger cars on the road is 14.5 years, indicating a growing opportunity for service growth [18] - The company ended Q2 with $1.1 billion in liquidity and a transaction-adjusted net leverage ratio of 2.46 times [23][24] Q&A Session Summary Question: Can you walk through the cadence of GPU and units as the quarter progressed? - Management noted that GPUs started strong but adjusted as the quarter progressed, with expectations of falling into the $2,500 to $3,000 range [27][28] Question: What initiatives are keeping SG&A under control? - The focus is on employee productivity and managing outside services, with some costs related to Techeon conversion impacting the SG&A ratio [34][35] Question: What opportunities exist for improving metrics post-Herb Chambers acquisition? - Management sees opportunities in luxury vehicle sales and operational efficiencies, emphasizing the strategic importance of the New England market [40][42] Question: How does the company plan to maintain parts and service growth amid tougher comparisons? - Management is confident in maintaining mid-single-digit growth, leveraging customer pay work to offset warranty headwinds [43][46] Question: What is the impact of tariffs on inventory and production? - Management indicated that while inventory is lean, it has not been negatively affected beyond normal operating levels, and OEMs have been preparing for tariff impacts [66][67] Question: Is California a potential market for future expansion? - Management stated that California is not currently a focus due to franchise laws and better investment opportunities in other states [69][70]

Core Insights - Asbury Automotive Group reported $4.37 billion in revenue for Q2 2025, a 3% year-over-year increase, with an EPS of $7.43 compared to $6.40 a year ago, indicating an EPS surprise of +8.94% against the consensus estimate [1] Financial Performance - Revenue of $4.37 billion was below the Zacks Consensus Estimate of $4.45 billion, representing a surprise of -1.73% [1] - Unit sales for new vehicles were 44,437, slightly below the average estimate of 45,291 [4] - Unit sales for used vehicle retail were 36,233, compared to the average estimate of 36,382 [4] - Average selling price for new vehicles was $51.85 billion, slightly lower than the average estimate of $52.01 billion [4] - Revenues from new vehicles were $2.3 billion, a 6.4% year-over-year increase, compared to the average estimate of $2.31 billion [4] - Revenues from used vehicles were $1.29 billion, a -1.7% change year-over-year, below the average estimate of $1.32 billion [4] - Revenues from parts and service were $601.5 million, a 3.6% year-over-year increase, below the average estimate of $624.93 million [4] - Revenues from finance and insurance net were $182 million, a -5.4% change year-over-year, below the average estimate of $203.25 million [4] - Revenues from used vehicle retail were $1.13 billion, a -3.2% change year-over-year, below the average estimate of $1.15 billion [4] - Revenues from used vehicle wholesale were $156.3 million, a 10.9% year-over-year increase, above the average estimate of $153.27 million [4] Stock Performance - Asbury Automotive shares returned -3.9% over the past month, while the Zacks S&P 500 composite increased by +3.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Company Highlights - Asbury's revenue has increased by 138% since 2019, with a Compound Annual Growth Rate (CAGR) of +19%[13] - Adjusted Earnings Per Share (EPS) has increased by 188% since 2019, with a CAGR of +24%[13] - The number of new car dealerships has increased by 73% since 2019[13] - Total revenue reached $173 billion[17], with 320118 new and used vehicles retailed[18] Financial Performance (2Q25) - Total company revenue increased by 3%, with same-store revenue up by 5%[34] - New vehicle revenue increased by 6%, with same-store revenue up by 9%[34] - Used vehicle retail decreased by 3%, with same-store retail down by 1%[34] - Parts & Service revenue increased by 4%, with same-store revenue up by 6%[34] Total Care Auto (TCA) - TCA standalone pre-tax income is estimated to be $75 million in 2025[53] - Consolidated TCA pre-tax income is estimated to be $35 million in 2025[53] Herb Chambers Acquisition - The acquisition is valued at approximately $145 billion[77] - Herb Chambers generated $29 billion in revenue in FY2024[69] - The acquisition is expected to increase Asbury's luxury brand mix from 30% to 35%[81]