Lithia Motors (LAD) reported second-quarter 2024 adjusted earnings per share of $7.87, which declined from the prior-year quarter's $10.91 but surpassed the Zacks Consensus Estimate of $7.09. Higher-than-expected revenues from used vehicle retail, service, body and parts, and fleet and others segments led to the beat. The auto retailer clocked revenues of $9.23 billion, up 14% year over year, and surpassed the Zacks Consensus Estimate by 0.31%. Segmental Performance New vehicle retail revenues increased 9.7 ...

Financial Data and Key Metrics Changes - Adjusted diluted earnings per share (EPS) reached $7.87, a 30% sequential improvement despite the CDK outage, although it represents a 28% decrease from Q2 of the previous year [5][10] - Total revenues grew to $9.2 billion, up 14% from Q2 of last year [8] - Adjusted SG&A as a percentage of gross profit was 67.9%, reflecting the impact of the CDK event [24] Business Line Data and Key Metrics Changes - Vehicle operations faced headwinds due to the CDK outage, with same-store revenues down 6.4% and gross profits declining 12.5% [8] - Financing operations produced income of $7.2 million, compared to a loss of $18.7 million in the same quarter last year, achieving profitability earlier than expected [23][24] - Aftersales business declined by 1.4%, primarily due to the CDK outage, which impacted aftersales by almost 40% during the outage period [9] Market Data and Key Metrics Changes - Total vehicle gross profit per unit remained stable at $47.62, down $951 compared to the same period last year [9] - The company reported a 2% increase in total monthly unique visitors (MUVs) year-over-year, reaching $12 million per month, with GreenCars contributing over 900,000 MUVs [11] Company Strategy and Development Direction - The company is focused on growing market share and operational efficiencies through a unique mobility ecosystem, leveraging strategic partnerships and acquisitions [5][7] - A minority stake was purchased in Wheels, a fleet management company, which is expected to create transformative synergies between retail and fleet platforms [7][11] - The company aims to achieve $2 of EPS for every $1 billion in revenue, with a target of $40 billion to $50 billion in sales in the mid-term (2 to 4 years) [15][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to double the anticipated $150 million in annualized SG&A cost savings, primarily driven by inventory reductions [7] - The company remains optimistic about operational performance and expects to realize significant benefits from the 60-day plan initiated to improve profitability [31] - Management acknowledged the challenges posed by higher interest rates but indicated that the company is well-positioned to navigate these conditions [52] Other Important Information - The company reported free cash flows of $127 million, impacted by declining EBITDA and increased capital expenditures [26] - The company has adjusted its capital allocation strategy to balance acquisitions and share buybacks, repurchasing 2.9% of outstanding shares during the quarter [15][26] Q&A Session Summary Question: Clarification on EPS increase - Management clarified that the $1.10 impact from the CDK outage adjusted the EPS tracking, indicating a nearly 50% increase in sequential EPS without the outage [29][30] Question: SG&A and cost reduction plan - Management indicated that SG&A as a percentage of gross profit would likely remain around current levels in Q3, with further reductions expected later in the year [33][35] Question: Parts and services run rate - Pre-CDK event, parts and services were tracking in the mid to low single digits on a same-store sales basis, with some recovery expected in July [36][38] Question: New car GPU outlook - Management discussed the potential for new car GPUs to normalize, indicating a glide path that includes both new and used vehicle profitability [39][41] Question: Fleet management synergies - Management explained that the partnership with Wheels would enhance service levels and create opportunities for selling new vehicles to fleet customers [47][49] Question: Interest rates impact - Management acknowledged that while higher interest rates have impacted consumer affordability, there is potential for benefits as rates decrease [52] Question: Share buyback strategy - Management emphasized a balanced approach to capital allocation, focusing on opportunistic purchases based on market conditions [54][56]

Investor Presentation JULY 2024 UPDATED 8/1/24 2 NYSE: LADDisclosure Forward-Looking Statements Certain statements in this presentation, and at times made by our officers and representatives, constitute forwardlooking 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", " ...

Lithia Motors (LAD) reported $9.23 billion in revenue for the quarter ended June 2024, representing a yearover-year increase of 13.8%. EPS of $7.87 for the same period compares to $10.91 a year ago. The reported revenue represents a surprise of +0.31% over the Zacks Consensus Estimate of $9.2 billion. With the consensus EPS estimate being $7.09, the EPS surprise was +11.00%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Stree ...

Lithia & Driveway (LAD) Reports Record Second Quarter Revenue of $9.2 billion, a 14% Increase, and the First Profitable Quarter for Financing Operations ________________________________________________ Announces Dividend of $0.53 per Share for Second Quarter Medford, Oregon, August 1, 2024 - Lithia & Driveway (NYSE: LAD) today reported the highest second quarter revenue in company history and the first profitable quarter for Financing Operations, which includes Driveway Finance Corporation. Second quarter 2 ...

Lithia Motors (LAD) came out with quarterly earnings of $7.87 per share, beating the Zacks Consensus Estimate of $7.09 per share. This compares to earnings of $10.91 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 11%. A quarter ago, it was expected that this auto dealership chain would post earnings of $7.85 per share when it actually produced earnings of $6.11, delivering a surprise of -22.17%. Over the last four quarters, ...

MEDFORD, Ore., Aug. 1, 2024 /PRNewswire/ -- Lithia & Driveway (NYSE: LAD), a leader in automotive retail, has realigned organizational leadership to more efficiently realize operational potential and leverage the competitive advantages of its now completed customer ecosystem. To achieve this, Adam Chamberlain has been promoted to Executive Vice President, Chief Operating Officer (COO) and Chris Holzshu will continue as an Executive Vice President, with both supporting LAD's commitment to delivering best-in- ...

How to Participate About Lithia & Driveway (LAD) Sites www.lithia.com www.investors.lithiadriveway.com www.lithiacareers.com www.driveway.com www.greencars.com www.drivewayfinancecorp.com | --- | --- | |----------------------------|-------| | | | | Lithia & Driveway on X | | | https://x.com/lithiamotors | | | https://x.com/DrivewayHQ | | | https://x.com/GreenCarsHQ | | Lithia & Driveway on YouTube https://www.youtube.com/@Lithia_Motors/featured SOURCE Lithia Motors, Inc. MEDFORD, Ore., July 16, 2024 /PRNews ...

Lithia, one of the largest dealership groups in the United States, shares Wheels' dedication to offering comprehensive services throughout the vehicle lifecycle, from acquisition and financing to maintenance and repair. Zacks Rank & Key Picks The consensus estimate for BLBD's 2024 sales and earnings suggests year-over-year growth of 17.29% and 155.14%, respectively. The EPS estimates for 2024 and 2025 have improved 63 cents and 69 cents, respectively, in the past 60 days. Marubeni has been investing in the ...

Marubeni has a strong track record of investing in companies across the US automotive value chain, dating back to 1958. Current Marubeni portfolio companies in the mobility sector include businesses focused on consumer auto finance, refrigerated trailer rental & leasing, and short-term commercial vehicle rentals. As an investor in Wheels in partnership with Apollo-managed funds focused on origination platforms and asset-backed finance strategies, Marubeni is aligned with Apollo's long-term vision for Wheels ...