Summary of Cars.com (CARS) FY Conference Call - May 13, 2025 Industry Overview - The automotive industry is described as resilient, with a historical ability to recover from economic downturns, evidenced by sales figures during past recessions [3][4] - The shift towards digital solutions is emphasized, with consumers moving ahead of the industry in adopting online platforms for car shopping [6] Company Performance - Cars.com has seen improving core business trends, with solid dealer growth reported in February, March, and April [4][10] - The company powers over 8,000 retail websites and generates subscription or SaaS-based revenue from various ecosystem participants [5] - The marketplace caters to both new and used car shoppers, with a significant portion of traffic coming from undecided consumers [16][12] Revenue and Growth Insights - Revenue guidance has been suspended due to uncertainty, but EBITDA margin guidance remains intact, supported by strong dealer and consumer fundamentals [16][19] - OEMs are shifting budgets towards digital solutions, which could positively impact Cars.com’s revenue once supply chain issues are resolved [21][22] - The company expects year-over-year growth despite variability in quarterly performance [19] Competitive Landscape - Cars.com differentiates itself through brand strength and expertise, providing curated inventory and insights to consumers [29][30] - The company is focused on deepening its software solutions and tools for dealers, enhancing the value proposition beyond just a marketplace [31] New Initiatives - The introduction of Accu Trade allows dealers to appraise vehicles in real-time, facilitating better inventory management [15][54] - The Dealer Club initiative aims to create a reputation-based wholesale marketplace, attracting significant interest from dealers [53][54] Capital Allocation - The company is leaning into share buybacks, with a strong performance in Q1 indicating a potential annualized buyback of $90 to $100 million [66][67] - Current stock valuations are viewed as attractive for buybacks, suggesting a proactive approach to capital allocation [66] Key Takeaways - The automotive market is expected to remain healthy despite external challenges, with Cars.com positioned to capitalize on digital trends and dealer needs [64] - The company is optimistic about future growth, particularly with new initiatives like Dealer Club and Accu Trade, which are expected to enhance dealer engagement and revenue streams [59][60]

Group 1: Kroger - Kroger's stock forecast indicates a 12-month price target of $67.06, with a current price of $68.91, suggesting a potential downside of 2.69% [3] - The company is expected to deliver significant capital returns to investors, including a $5 billion accelerated plan and $2.5 billion remaining on the existing authorization [3][4] - Despite a contraction in FQ4 2024 results, the organic adjusted comparable figure rose modestly, and growth is anticipated to return in 2025, supported by a reliable dividend [5][6] Group 2: Casey's General Stores - Casey's General Stores has a 12-month stock price forecast of $430.33, with a current price of $436.80, indicating a downside of 1.48% [9] - The company is growing through acquisitions and organic expansion, with revenue growth of 17% in Q3 driven by the acquisition of Fikes [9] - Casey's maintains a reliable dividend with a payout ratio of almost 15% of earnings, aiming to extend its history of annual distribution increases [11] Group 3: AutoZone - AutoZone's stock forecast shows a 12-month price target of $3,821.91, with a current price of $3,663.00, indicating an upside of 4.34% [13] - The company focuses on share buybacks instead of dividends, reducing its share count by over 3.25% year-over-year in FQ2, with $1.3 billion remaining for buybacks [14] - AutoZone is expected to continue modest single-digit growth, supported by a strong balance sheet and cash flow [15]

Group 1 - Penske Automotive Group (NYSE: PAG) is highlighted as a noteworthy player in the automotive retail space despite not being the favorite [1] - The management of Penske Automotive Group has a solid track record, indicating reliability and potential for growth [1] Group 2 - Crude Value Insights focuses on cash flow and companies in the oil and natural gas sector, emphasizing value and growth prospects [1] - The service offers subscribers access to a 50+ stock model account and in-depth cash flow analyses of exploration and production firms [2]

ROGERS, Ark., May 08, 2025 (GLOBE NEWSWIRE) -- America’s Car-Mart, Inc. (NASDAQ: CRMT) (“we,” “Car-Mart” or the “Company”), today announced that Jonathan Collins will assume the role of Chief Financial Officer (CFO) effective May 12, 2025. He will succeed Vickie Judy, who will transition to the position of Chief Accounting Officer (CAO). This transition is part of the Company’s continued focus on building a robust foundation to support long-term growth. “Since joining the Company in 2010, Vickie has played ...

Core Viewpoint - Carvana is experiencing a significant business turnaround in 2025, with strong Q1 results indicating robust consumer market performance and improving profitability, setting ambitious long-term targets [1][2] Financial Performance - In FQ1 2025, Carvana's revenue surged by 38% to $4.233 billion, exceeding MarketBeat's consensus estimate by 575 basis points, driven by a 46% increase in retail units sold [2] - The adjusted EBITDA margin reached a record 11.5%, with adjusted diluted EPS at $1.53, reflecting over 500% growth compared to the previous year [3] Future Outlook - Carvana aims to exceed 3 million annual retail unit sales with a target margin of 13.5%, representing over 700% growth compared to 2024 [2] - The company forecasts sequential growth in revenue and earnings for Q2, with no immediate impact from tariffs, which have pushed used car prices to two-year highs [4] Balance Sheet and Equity - Carvana's balance sheet shows improvement, with a 28% year-to-date increase in shareholder equity, despite still carrying significant debt [5] - Positive cash flow and increased cash and assets are noted, indicating a strengthening financial position [5] Analyst Ratings and Price Targets - Analysts maintain a Moderate Buy rating for Carvana, with a 12-month price target of $260.35, suggesting a potential downside of 8.03% from current levels [4] - Some analysts project a high forecast of $340.00, indicating a potential upside of 30% [9] Market Activity - Short interest in Carvana has decreased but remains elevated, while institutional ownership is above 55% and growing, providing support for price action [10] - Following the earnings release, Carvana's stock experienced volatility but rebounded, indicating a buy-the-dip scenario with potential resistance at $285 [11]

Group 1: America's Car-Mart, Inc. (CRMT) - America's Car-Mart is an automotive retailer with a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for its current year earnings has increased by 87.2% over the last 60 days [1] - The company has a PEG ratio of 0.34, which is lower than the industry average of 0.54 [1] - America's Car-Mart possesses a Growth Score of B [1] Group 2: Banco Santander-Chile (BSAC) - Banco Santander-Chile is a commercial and retail banking company with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 7.3% over the last 60 days [2] - The company has a PEG ratio of 0.73, compared to the industry average of 1.00 [2] - Banco Santander-Chile also possesses a Growth Score of B [2]

Core Insights - Carvana reported $4.23 billion in revenue for Q1 2025, a year-over-year increase of 38.3% and an EPS of $1.51 compared to -$0.41 a year ago, exceeding Zacks Consensus Estimates for revenue and EPS [1] - The company has shown strong stock performance, with shares returning +46.8% over the past month, outperforming the Zacks S&P 500 composite's +10.6% change, and currently holds a Zacks Rank 1 (Strong Buy) [3] Financial Performance Metrics - Retail vehicle unit sales reached 133,898, surpassing the six-analyst average estimate of 129,401 [4] - Retail vehicle sales, net, amounted to $2.98 billion, exceeding the four-analyst average estimate of $2.88 billion, representing a year-over-year change of +37% [4] - Wholesale sales and revenues were reported at $863 million, above the estimated $804.95 million, reflecting a +31.4% change year-over-year [4] - Other sales and revenues totaled $389 million, exceeding the estimated $339.14 million, with a significant year-over-year increase of +69.9% [4] Profitability Metrics - Per retail unit gross profit totaled $6,938, slightly below the estimated $6,956.18 [4] - Per retail unit gross profit for retail vehicles was $3,204, compared to the average estimate of $3,350.74 [4] - Per unit revenue for retail vehicles was $22,256, lower than the estimated $22,762.43 [4]

Carvana (CVNA) Q1 2025 Earnings Call May 07, 2025 05:30 PM ET Speaker0 afternoon, ladies and gentlemen, and thank you for joining us on Carvana's first quarter twenty twenty five earnings conference call. Please note that this call will be simultaneously webcast on the Investor Relations section of the company's corporate website at investors.carvana.com. The first quarter shareholder letter is also posted on the IR website. Additionally, we posted a set of supplemental financial tables for Q1, which can be ...

Non-GAAP Metrics Definition - Non-GAAP Gross Profit is defined as GAAP gross profit plus depreciation and amortization expense in cost of sales and share-based compensation expense in cost of sales, minus revenue related to Root Warrants[3] - Non-GAAP SG&A Expense is defined as GAAP SG&A expenses minus depreciation and amortization expense in SG&A expenses, share-based compensation expense in SG&A expenses, and restructuring expense in SG&A expenses[4] - Adjusted EBITDA is defined as net income (loss) plus income tax provision (benefit), interest expense, net, other operating expense, net, other income, net, depreciation and amortization expense in cost of sales and SG&A expenses, share-based compensation expense in cost of sales and SG&A expenses, loss on debt extinguishment, and restructuring expense in cost of sales and SG&A expenses, minus revenue related to Root Warrants; Adjusted EBITDA margin is Adjusted EBITDA as a percentage of total revenues[5] - Non-GAAP Gross Profit minus Non-GAAP SG&A Expense equals Adjusted EBITDA[6] Unit Sales - Retail units sold in Q1 2023 were 79,240, increasing to 91,878 in Q1 2024, and further to 133,898 in Q1 2025[7] - Wholesale vehicle units sold in Q1 2023 were 35,110, increasing to 44,155 in Q1 2024, and further to 63,454 in Q1 2025[7] - Wholesale marketplace units transacted in Q1 2023 were 213,764, increasing to 242,647 in Q1 2024, and further to 248,624 in Q1 2025[7] GPU & SG&A Expense Changes (Q1 2024 vs Q1 2025) - Total GPU, GAAP increased by $506, from $6,432 to $6,938[8] - Retail GPU, Non-GAAP increased by $97, from $3,211 to $3,308, driven by lower recon and inbound cost and lower retail depreciation rates, offset by decreases in spreads[8] - Wholesale marketplace GPU, Non-GAAP decreased by $160, from $631 to $471, due to +9% growth in wholesale marketplace gross profit, Non-GAAP offset by 46% retail units sold growth[8] - Total SG&A Expense per Unit, GAAP decreased by $967, from $4,963 to $3,996[8] - Total SG&A Expense per Unit, Non-GAAP decreased by $750, from $4,245 to $3,495[8]

Financial Data and Key Metrics Changes - NAV decreased by $336 million from Q4 2024, primarily due to negative performance in funds and accrual for distribution, partially offset by increases in CVI and auto service [5] - Investment funds ended down approximately 8.4% for the quarter, mainly driven by healthcare investments [6] - The company ended the quarter with $1.3 billion in cash and cash equivalents at the holding company, and an additional $900 million of cash at the funds [6] Business Line Data and Key Metrics Changes - Energy segment consolidated EBITDA was negative $61 million for Q1 2025, compared to $203 million in Q1 2024, impacted by the Coffeyville refinery turnaround and unfavorable RINs valuation [11] - Automotive segment sales were down 9% year over year; excluding the wind down of the parts business, sales were down 6% [12] - Adjusted EBITDA for the automotive segment was negative $6 million, with profitability suffering due to labor hiring and inventory optimization efforts [13] - Real estate's Q1 2025 adjusted EBITDA decreased by $1 million compared to the prior year quarter [15] - Food Packaging's adjusted EBITDA decreased by $6 million due to lower prices and higher material costs [16] - Pharma's adjusted EBITDA for Q1 2025 came in lower by $3 million due to increased R&D spending and marketing expenses [17] Market Data and Key Metrics Changes - The company noted a modestly positive performance quarter to date when marking to market the funds and adding in CVI and UAN [6][25] Company Strategy and Development Direction - The company is focusing on significant investments in labor, inventory, equipment, and marketing to improve the automotive segment's performance [12] - The board maintained a quarterly distribution at $0.50 per depositary unit, indicating a commitment to returning value to shareholders [7] - The company is exploring the sale of additional properties in its portfolio and seeking new opportunities that fit its investment strategy [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the resolution of outstanding litigation related to small refinery exemptions, which could remove a $438 million liability [5] - The company sees considerable value creation potential in its portfolio despite market volatility [7] - Management believes that investments in the automotive segment, while painful in the short term, are necessary for long-term profitability [13] Other Important Information - The company has a significant liquidity position, with $3.8 billion in cash and investments at the holding company and $1.3 billion at subsidiaries [18] Q&A Session Summary Question: Can you provide details on the automotive segment store closures? - Management refrained from discussing the aggregate EBITDA loss from store closures but indicated that many previously profitable stores are now money-losing and are being evaluated for closure [20][21] Question: Are there any liabilities associated with the store closures? - Management noted that some closures present opportunities, with one previously underperforming store sold for $4 million, indicating that many closures should not be considered liabilities [22][23] Question: What is the current status of indicative net asset value? - Management clarified that the public portfolio and marked investments were modestly positive as of the last Friday [25]