Announces Dividend of $0.53 per Share for First Quarter
MEDFORD,
Ore., April 24, 2024 /PRNewswire/ -- Lithia
& Driveway (NYSE: LAD) today reported the highest first quarter
revenue in company history.
First quarter 2024 revenue increased 23% to $8.6 billion from $7.0
billion in the first quarter of 2023.
First quarter 2024 net income attributable to LAD per
diluted share was $5.89, a 29%
decrease from $8.30 per diluted share
reported in the first quarter of 2023. Adjusted first quarter 2024
net income attributable to LAD per diluted share was $6.11, a 28% decrease compared to $8.44 per diluted share in the same period of
2023. Unrealized foreign currency losses negatively impacted
earnings per share by $0.15.
First quarter 2024 net income was $165 million, a 28% decrease compared to net
income of $230 million in the same
period of 2023. Adjusted first quarter 2024 net income was
$171 million, a 27% decrease compared
to adjusted net income of $233
million for the same period of 2023.
As shown in the attached non-GAAP reconciliation tables, the
2024 first quarter adjusted results exclude a $0.22 per diluted share impact resulting from
non-core items, specifically acquisition expenses. The 2023 first
quarter adjusted results exclude a $0.14 per diluted share impact resulting from
non-core items, including one-time contract buyouts, acquisition
expenses, investment loss, and insurance reserves, partially offset
by a net gain on the sale of stores.
First Quarter-Over-Quarter Comparisons and First
Quarter 2024 Performance Highlights:
- Total revenues increased 23%
- New vehicle same store units grew by 3.6 %
- Total vehicle gross profit per unit of $4,346, down $1,239
- GreenCars monthly unique visitors (MUVs) increased by
71%
- Driveway Finance Corporation (DFC) originated approximately
$493 million in loans
- Service, body, and parts revenues increased 24%
- Driveway and GreenCars burn-rate has been cut in half
"In the first quarter, our teams responded as the industry
continued to normalize inventories and profitability. We are
committed to driving improvements across our business," said
Bryan DeBoer, President and CEO.
"Our model is diversified with our adjacencies maturing and on a
path to profitability, as we continue to deliver the best
experience for our customers. Responding to market conditions, we
are rebalancing our capital allocation from acquisitions toward
returns to our shareholders, with the long-term target of
delivering $2 in EPS per billion in
revenues."
Corporate Development
During the first quarter, LAD
completed the acquisition of Pendragon PLC's Fleet Management and
UK Motor Divisions in the United
Kingdom and grew in the North Central region with the
purchase of the Carousel Motor Group. Year-to-date, we have
acquired over $5.4 billion in
annualized revenues.
Balance Sheet Update
LAD ended the first quarter with
approximately $1.3 billion in cash
and cash equivalents, marketable securities, and availability on
our revolving lines of credit. In addition, unfinanced real estate
could provide additional liquidity of approximately $0.3 billion.
Dividend Payment and Share Repurchases
The Board of
Directors approved a dividend of $0.53 per share related to
first quarter 2024 financial results. The dividend is expected to
be paid on May 24, 2024 to shareholders of record on
May 10, 2024.
During April 2024, we repurchased
approximately 58,000 shares at a weighted average price of
$264.42. Under the current share
repurchase authorization approximately $451.7 million remains available.
First Quarter Earnings Conference Call and Updated
Presentation
The first quarter 2024 conference call may be
accessed at 10:00 a.m. ET today by
telephone at 877-407-8029. An updated presentation highlighting the
first quarter 2024 results has been added to our investor relations
website. To listen live on our website or for replay, visit
investors.lithiadriveway.com and click on quarterly earnings.
About Lithia & Driveway (LAD)
Lithia &
Driveway (NYSE: LAD) is one of the largest global automotive
retailers providing a wide array of products and services
throughout the vehicle ownership lifecycle. Simple, convenient, and
transparent experiences are offered through our comprehensive
network of physical locations, e-commerce platforms, captive
finance solutions and other synergistic adjacencies. We deliver
consistent, profitable growth in a massive and unconsolidated
industry. Our highly diversified and competitively differentiated
design provides us the flexibility and scale to pursue our vision
to modernize personal transportation solutions wherever, whenever
and however consumers desire.
Sites
www.lithia.com
investors.lithiadriveway.com
www.lithiacareers.com
www.driveway.com
www.greencars.com
www.drivewayfinancecorp.com
Lithia & Driveway on
Facebook
https://www.facebook.com/LithiaMotors
https://www.facebook.com/DrivewayHQ
Lithia & Driveway on
Twitter
https://twitter.com/lithiamotors
https://twitter.com/DrivewayHQ
https://twitter.com/GreenCarsHQ
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," "forecast," "anticipate," "believe," "estimate,"
"predict," "potential," "likely," "goal," "strategy," "future,"
"maintain," and "continue" or the negative of these terms or other
comparable terms. Examples of forward-looking statements in this
presentation include, among others, statements regarding:
- Future market conditions, including anticipated car and other
sales levels and the supply of inventory
- Our business strategy and plans, including our achieving our
long-term EPS target
- The growth, expansion, make-up and success of our network,
including our finding accretive acquisitions and acquiring
additional stores
- Annualized revenues from acquired stores
- The growth and performance of our Driveway e-commerce home
solution and Driveway Finance Corporation (DFC), their synergies
and other impacts on our business and our ability to meet Driveway
and DFC-related targets
- The impact of sustainable vehicles and other market and
regulatory changes on our business
- Our capital allocations and uses and levels of capital
expenditures in the future
- Expected operating results, such as improved store performance,
continued improvement of selling, general and administrative
expenses as a percentage of gross profit and any projections
- Our anticipated financial condition and liquidity, including
from our cash and the future availability of our credit facilities,
unfinanced real estate and other financing sources
- Our continuing to purchase shares under our share repurchase
program
- Our compliance with financial and restrictive covenants in our
credit facilities and other debt agreements
- Our programs and initiatives for employee recruitment,
training, and retention
- Our strategies and targets for customer retention, growth,
market position, operations, financial results and risk
management
Because forward-looking statements relate to the future, they
are subject to inherent uncertainties, risks and changes in
circumstances that are difficult to predict and many of which are
outside of our control. Forward-looking statements are not
guarantees of future performance, and our actual results of
operations, financial condition and liquidity and development of
the industry in which we operate may differ materially from those
made in or suggested by the forward-looking statements in this
presentation. Therefore, you should not rely on any of these
forward-looking statements. The risks and uncertainties that could
cause actual results to differ materially from estimated or
projected results include, without limitation:
- Future national and local economic and financial conditions,
including as a result of regional or global public health issues,
inflation and governmental programs, and spending
- The market for dealerships, including the availability of
stores to us for an acceptable price
- Changes in customer demand, our relationship with, and the
financial and operational stability of, OEMs and other
suppliers
- Changes in the competitive landscape, including through
technology and our ability to deliver new products, services and
customer experiences and a portfolio of in-demand and available
vehicles
- Risks associated with our indebtedness, including available
borrowing capacity, interest rates, compliance with financial
covenants and ability to refinance or repay indebtedness on
favorable terms
- The adequacy of our cash flows and other conditions which may
affect our ability to fund capital expenditures, obtain favorable
financing and pay our quarterly dividend at planned levels
- Disruptions to our technology network including computer
systems, as well as natural events such as severe weather or
man-made or other disruptions of our operating systems, facilities
or equipment
- Government regulations and legislation
- The risks set forth throughout "Part II, Item 7. Management's
Discussion and Analysis of Financial Condition and Results of
Operations" and in "Part I, Item 1A. Risk Factors" of our most
recent Annual Report on Form 10-K, and in "Part II, Item 1A. Risk
Factors" of our Quarterly Reports on Form 10-Q, and from time to
time in our other filings with the SEC.
Any forward-looking statement made by us in this presentation is
based only on information currently available to us and speaks only
as of the date on which it is made. Except as required by law, we
undertake no obligation to publicly update any forward-looking
statement, whether written or oral, that may be made from time to
time, whether as a result of new information, future developments
or otherwise.
Non-GAAP Financial Measures
This presentation contains
non-GAAP financial measures such as adjusted net income and diluted
earnings per share, adjusted SG&A as a percentage of revenue
and gross profit, adjusted operating margin, adjusted operating
profit as a percentage of revenue and gross profit, adjusted
pre-tax margin and net profit margin, EBITDA, adjusted EBITDA,
leveraged EBITDA and adjusted total debt. Non-GAAP measures do not
have definitions under GAAP and may be defined differently by and
not comparable to similarly titled measures used by other
companies. As a result, we review any non-GAAP financial measures
in connection with a review of the most directly comparable
measures calculated in accordance with GAAP. We caution you not to
place undue reliance on such non-GAAP measures, but also to
consider them with the most directly comparable GAAP measures. We
present cash flows from operations in the attached tables, adjusted
to include the change in non-trade floor plan debt to improve the
visibility of cash flows related to vehicle financing. As required
by SEC rules, we have reconciled these measures to the most
directly comparable GAAP measures in the attachments to this
release. We believe the non-GAAP financial measures we present
improve the transparency of our disclosures; provide a meaningful
presentation of our results from core business operations, because
they exclude items not related to core business operations and
other non-cash items; and improve the period-to-period
comparability of our results from core business operations. These
presentations should not be considered an alternative to GAAP
measures.
|
LAD
Consolidated Statements of
Operations (Unaudited)
(In millions except per share data)
|
|
|
Three months
ended
March 31,
|
|
%
|
|
|
|
Increase
|
|
|
2024
|
|
2023
|
|
(Decrease)
|
|
Revenues:
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
4,014.1
|
|
$
3,278.9
|
|
22.4 %
|
|
Used vehicle
retail
|
|
2,800.8
|
|
2,227.5
|
|
25.7
|
|
Used vehicle
wholesale
|
|
332.2
|
|
356.7
|
|
(6.9)
|
|
Finance and
insurance
|
|
340.6
|
|
318.3
|
|
7.0
|
|
Service, body and
parts
|
|
912.8
|
|
736.3
|
|
24.0
|
|
Fleet and
other
|
|
155.9
|
|
56.1
|
|
177.9
|
|
Total
revenues
|
|
8,556.4
|
|
6,973.8
|
|
22.7 %
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
3,718.8
|
|
2,945.1
|
|
26.3
|
|
Used vehicle
retail
|
|
2,598.6
|
|
2,061.8
|
|
26.0
|
|
Used vehicle
wholesale
|
|
352.8
|
|
359.5
|
|
(1.9)
|
|
Service, body and
parts
|
|
410.8
|
|
341.9
|
|
20.2
|
|
Fleet and
other
|
|
140.2
|
|
54.0
|
|
159.6
|
|
Total cost of
sales
|
|
7,221.2
|
|
5,762.3
|
|
25.3
|
|
Gross
profit
|
|
1,335.2
|
|
1,211.5
|
|
10.2 %
|
|
|
|
|
|
|
|
|
Financing operations
loss
|
|
(1.7)
|
|
(20.8)
|
|
(91.8) %
|
|
|
|
|
|
|
|
|
SG&A
expense
|
|
934.3
|
|
764.4
|
|
22.2
|
|
Depreciation and
amortization
|
|
57.8
|
|
47.3
|
|
22.2
|
|
Income from
operations
|
|
341.4
|
|
379.0
|
|
(9.9) %
|
|
Floor plan interest
expense
|
|
(60.7)
|
|
(27.7)
|
|
119.1
|
|
Other interest
expense
|
|
(63.6)
|
|
(39.0)
|
|
63.1
|
|
Other income (expense),
net
|
|
3.5
|
|
2.0
|
|
NM
|
|
Income before income
taxes
|
|
220.6
|
|
314.3
|
|
(29.8) %
|
|
Income tax
expense
|
|
(55.6)
|
|
(84.7)
|
|
(34.4)
|
|
Income tax
rate
|
|
25.2 %
|
|
26.9 %
|
|
|
|
Net
income
|
|
$
165.0
|
|
$
229.6
|
|
(28.1) %
|
|
Net income attributable
to non-controlling interests
|
|
(1.5)
|
|
(0.7)
|
|
114.3 %
|
|
Net income attributable
to redeemable non-controlling interest
|
|
(0.9)
|
|
(0.2)
|
|
350.0 %
|
|
Net income
attributable to LAD
|
|
$
162.6
|
|
$
228.7
|
|
(28.9) %
|
|
|
|
|
|
|
|
|
Diluted earnings per
share attributable to LAD:
|
|
|
|
|
|
|
|
Net income per
share
|
|
$ 5.89
|
|
$ 8.30
|
|
(29.0) %
|
|
|
|
|
|
|
|
|
Diluted shares
outstanding
|
|
27.6
|
|
27.5
|
|
0.4 %
|
|
NM - not
meaningful
|
|
|
|
|
|
|
|
LAD
Key
Performance Metrics (Unaudited)
|
|
|
Three months
ended
March 31,
|
|
%
|
|
|
|
Increase
|
|
|
2024
|
|
2023
|
|
(Decrease)
|
|
Gross
margin
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
7.4 %
|
|
10.2 %
|
|
(280) bps
|
|
Used vehicle
retail
|
|
7.2
|
|
7.4
|
|
(20)
|
|
Finance and
insurance
|
|
100.0
|
|
100.0
|
|
—
|
|
Service, body and
parts
|
|
55.0
|
|
53.6
|
|
140
|
|
Gross profit
margin
|
|
15.6
|
|
17.4
|
|
(180)
|
|
|
|
|
|
|
|
|
Unit
sales
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
85,683
|
|
67,796
|
|
26.4 %
|
|
Used vehicle
retail
|
|
102,436
|
|
78,142
|
|
31.1
|
|
|
|
|
|
|
|
|
Average selling
price
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
$46,848
|
|
$48,364
|
|
(3.1) %
|
|
Used vehicle
retail
|
|
27,342
|
|
28,506
|
|
(4.1)
|
|
|
|
|
|
|
|
|
Average gross profit
per unit
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
3,447
|
|
$
4,924
|
|
(30.0) %
|
|
Used vehicle
retail
|
|
1,974
|
|
2,120
|
|
(6.9)
|
|
Finance and
insurance
|
|
1,811
|
|
2,181
|
|
(17.0)
|
|
Total
vehicle(1)
|
|
4,346
|
|
5,585
|
|
(22.2)
|
|
|
|
|
|
|
|
|
Revenue
mix
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
46.9 %
|
|
47.0 %
|
|
|
|
Used vehicle
retail
|
|
32.7
|
|
31.9
|
|
|
|
Used vehicle
wholesale
|
|
3.9
|
|
5.1
|
|
|
|
Finance and insurance,
net
|
|
4.0
|
|
4.6
|
|
|
|
Service, body and
parts
|
|
10.7
|
|
10.6
|
|
|
|
Fleet and
other
|
|
1.8
|
|
0.8
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
Mix
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
22.1 %
|
|
27.6 %
|
|
|
|
Used vehicle
retail
|
|
15.1
|
|
13.7
|
|
|
|
Used vehicle
wholesale
|
|
(1.5)
|
|
(0.2)
|
|
|
|
Finance and insurance,
net
|
|
25.5
|
|
26.3
|
|
|
|
Service, body and
parts
|
|
37.6
|
|
32.4
|
|
|
|
Fleet and
other
|
|
1.2
|
|
0.2
|
|
|
|
|
Adjusted
|
|
As
reported
|
|
|
Three months
ended March 31,
|
|
Three months
ended March 31,
|
|
Other
metrics
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
SG&A as a % of
revenue
|
|
10.8 %
|
|
10.9 %
|
|
10.9 %
|
|
11.0 %
|
|
SG&A as a % of
gross profit
|
|
69.4
|
|
62.7
|
|
70.0
|
|
63.1
|
|
Operating profit as a %
of revenue
|
|
4.1
|
|
5.5
|
|
4.0
|
|
5.4
|
|
Operating profit as a %
of gross profit
|
|
26.1
|
|
31.6
|
|
25.6
|
|
31.3
|
|
Pretax
margin
|
|
2.7
|
|
4.6
|
|
2.6
|
|
4.5
|
|
Net profit
margin
|
|
2.0
|
|
3.3
|
|
1.9
|
|
3.3
|
|
(1) Includes the
sales and gross profit related to new, used retail, used wholesale
and finance and insurance and unit sales for new and
used
retail
|
|
LAD
Same
Store Operating Highlights (Unaudited)
|
|
|
Three months
ended
March 31,
|
|
%
|
|
|
|
Increase
|
|
|
2024
|
|
2023
|
|
(Decrease)
|
|
Revenues
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
3,261.0
|
|
$
3,188.7
|
|
2.3 %
|
|
Used vehicle
retail
|
|
2,039.6
|
|
2,148.0
|
|
(5.0)
|
|
Finance and
insurance
|
|
297.7
|
|
312.7
|
|
(4.8)
|
|
Service, body and
parts
|
|
740.2
|
|
717.5
|
|
3.2
|
|
Total
revenues
|
|
6,639.8
|
|
6,771.1
|
|
(1.9)
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
235.7
|
|
$
323.5
|
|
(27.1) %
|
|
Used vehicle
retail
|
|
152.6
|
|
160.6
|
|
(5.0)
|
|
Finance and
insurance
|
|
297.7
|
|
312.7
|
|
(4.8)
|
|
Service, body and
parts
|
|
409.7
|
|
384.4
|
|
6.6
|
|
Total gross
profit
|
|
1,094.8
|
|
1,180.3
|
|
(7.2)
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
7.2 %
|
|
10.1 %
|
|
(290) bps
|
|
Used vehicle
retail
|
|
7.5
|
|
7.5
|
|
—
|
|
Finance and
insurance
|
|
100.0
|
|
100.0
|
|
—
|
|
Service, body and
parts
|
|
55.4
|
|
53.6
|
|
180
|
|
Gross profit
margin
|
|
16.5
|
|
17.4
|
|
(90)
|
|
|
|
|
|
|
|
|
Unit
sales
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
68,373
|
|
65,980
|
|
3.6 %
|
|
Used vehicle
retail
|
|
74,710
|
|
75,928
|
|
(1.6)
|
|
|
|
|
|
|
|
|
Average selling
price
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
$ 47,695
|
|
$ 48,328
|
|
(1.3) %
|
|
Used vehicle
retail
|
|
27,300
|
|
28,290
|
|
(3.5)
|
|
|
|
|
|
|
|
|
Average gross profit
per unit
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
3,448
|
|
$
4,903
|
|
(29.7) %
|
|
Used vehicle
retail
|
|
2,043
|
|
2,116
|
|
(3.4)
|
|
Finance and
insurance
|
|
2,080
|
|
2,204
|
|
(5.6)
|
|
Total
vehicle(1)
|
|
4,760
|
|
5,594
|
|
(14.9)
|
|
(1) Includes the
sales and gross profit related to new, used retail, used wholesale
and finance and insurance and unit sales for new and
used
retail
|
|
LAD
Other
Highlights (Unaudited)
|
|
|
Three months ended
March 31,
|
|
|
2024
|
|
Key Performance by
Country
|
|
Total
Revenue
|
|
Total Gross
Profit
|
|
United
States
|
|
79.0 %
|
|
84.5 %
|
|
United
Kingdom
|
|
18.2 %
|
|
13.0 %
|
|
Canada
|
|
2.8 %
|
|
2.5 %
|
|
As of
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
2024
|
|
2023
|
|
2023
|
|
Days
Supply(1)
|
|
|
|
|
|
|
New vehicle
inventory
|
60
|
|
65
|
|
51
|
|
Used vehicle
inventory
|
58
|
|
64
|
|
53
|
|
(1) Days supply calculated based on
current inventory levels, including in-transit vehicles, and a
30-day historical cost of sales
level.
|
|
Selected Financing
Operations Financial Information
|
|
Three months ended
March 31,
|
|
($ in
millions)
|
2024
|
|
% (1)
|
|
2023
|
|
% (1)
|
|
Interest
margin:
|
|
|
|
|
|
|
|
|
Interest and fee
income
|
$
77.3
|
|
9.0
|
|
$
49.3
|
|
8.1
|
|
Interest
expense
|
(47.8)
|
|
(5.6)
|
|
(37.5)
|
|
(6.2)
|
|
Total interest
margin
|
$
29.5
|
|
3.5
|
|
$
11.8
|
|
1.9
|
|
Lease income
|
22.4
|
|
|
|
4.6
|
|
|
|
Depreciation and
amortization
|
(18.0)
|
|
|
|
(2.3)
|
|
|
|
Lease income,
net
|
4.4
|
|
|
|
2.3
|
|
|
|
Selling, general and
administrative
|
(10.6)
|
|
|
|
(8.6)
|
|
|
|
Provision
expense
|
(25.0)
|
|
(2.9)
|
|
(26.3)
|
|
(4.3)
|
|
Financing operations
loss
|
$
(1.7)
|
|
|
|
$
(20.8)
|
|
|
|
|
|
|
|
|
|
|
|
Total average managed
finance receivables
|
$
3,436.6
|
|
|
|
$
2,461.9
|
|
|
|
|
|
|
|
|
|
|
|
Ending funded managed
receivables
|
$
3,106.3
|
|
|
|
$
2,247.9
|
|
|
|
% of ending managed
receivables
|
88.1 %
|
|
|
|
84.3 %
|
|
|
|
(1)
Annualized percentage of total average managed finance
receivables
|
|
LAD
Condensed Consolidated Balance
Sheets (Unaudited)
(In millions)
|
|
|
March 31,
2024
|
|
December 31,
2023
|
|
Cash, restricted cash,
and cash equivalents
|
|
$
404.6
|
|
$
941.4
|
|
Trade receivables,
net
|
|
1,249.3
|
|
1,123.1
|
|
Inventories,
net
|
|
5,861.9
|
|
4,753.9
|
|
Other current
assets
|
|
217.4
|
|
136.8
|
|
Total current
assets
|
|
$
7,733.2
|
|
$
6,955.2
|
|
|
|
|
|
|
Property and equipment,
net
|
|
4,502.0
|
|
3,981.4
|
|
Finance receivables,
net
|
|
3,412.5
|
|
3,242.3
|
|
Intangibles
|
|
4,619.7
|
|
4,332.8
|
|
Other non-current
assets
|
|
1,912.6
|
|
1,120.8
|
|
Total
assets
|
|
$
22,180.0
|
|
$
19,632.5
|
|
|
|
|
|
|
Floor plan notes
payable
|
|
4,962.0
|
|
3,635.5
|
|
Other current
liabilities
|
|
1,629.5
|
|
1,296.7
|
|
Total current
liabilities
|
|
$
6,591.5
|
|
$
4,932.2
|
|
|
|
|
|
|
Long-term debt, less
current maturities
|
|
5,662.4
|
|
5,483.7
|
|
Non-recourse notes
payable, less current maturities
|
|
1,803.9
|
|
1,671.7
|
|
Other long-term
liabilities and deferred revenue
|
|
1,700.6
|
|
1,262.0
|
|
Total
liabilities
|
|
$
15,758.4
|
|
$
13,349.6
|
|
|
|
|
|
|
Redeemable
non-controlling interest and equity
|
|
6,421.6
|
|
6,282.9
|
|
Total liabilities,
redeemable non-controlling interest, and equity
|
|
$
22,180.0
|
|
$
19,632.5
|
|
LAD
Condensed Consolidated Statements of
Cash Flows (Unaudited)
(In millions)
|
|
|
Three months ended
March 31,
|
|
Cash flows from
operating activities:
|
|
2024
|
|
2023
|
|
Net income
|
|
$
165.0
|
|
$
229.6
|
|
Adjustments to
reconcile net income to net cash used in operating
activities
|
|
127.0
|
|
82.3
|
|
Changes in:
|
|
|
|
|
|
Inventories
|
|
(183.3)
|
|
(56.9)
|
|
Finance receivables,
net
|
|
(173.8)
|
|
(397.0)
|
|
Floor plan notes
payable, net
|
|
327.7
|
|
38.9
|
|
Other operating
activities
|
|
29.8
|
|
54.1
|
|
Net cash provided
by (used in) operating activities
|
|
292.4
|
|
(49.0)
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Capital
expenditures
|
|
(79.6)
|
|
(38.9)
|
|
Cash paid for
acquisitions, net of cash acquired
|
|
(1,074.4)
|
|
(387.4)
|
|
Proceeds from sales of
stores
|
|
6.4
|
|
22.7
|
|
Other investing
activities
|
|
(118.3)
|
|
(10.3)
|
|
Net cash used in
investing activities
|
|
(1,265.9)
|
|
(413.9)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Net borrowings on floor
plan notes payable, non-trade
|
|
156.1
|
|
187.6
|
|
Net borrowings
non-recourse notes payable
|
|
125.9
|
|
403.2
|
|
Net borrowings
(repayments) of other debt and finance lease liabilities
|
|
201.8
|
|
(42.1)
|
|
Proceeds from issuance
of common stock
|
|
5.7
|
|
6.1
|
|
Repurchase of common
stock
|
|
(15.0)
|
|
(14.4)
|
|
Dividends
paid
|
|
(13.8)
|
|
(11.5)
|
|
Other financing
activity
|
|
(15.7)
|
|
(19.0)
|
|
Net cash provided
by financing activities
|
|
445.0
|
|
509.9
|
|
Effect of exchange
rate changes on cash and restricted cash
|
|
(3.0)
|
|
6.2
|
|
Change in cash,
restricted cash, and cash equivalents
|
|
(531.5)
|
|
53.2
|
|
Cash, restricted
cash, and cash equivalents at beginning of period
|
|
972.0
|
|
271.5
|
|
Cash, restricted
cash, and cash equivalents at end of period
|
|
440.5
|
|
324.7
|
|
LAD
Reconciliation of Non-GAAP Cash Flow
from Operations (Unaudited)
(In millions)
|
|
|
Three months ended
March 31,
|
|
Net cash provided by
operating activities
|
|
2024
|
|
2023
|
|
As reported
|
|
$
292.4
|
|
$
(49.0)
|
|
Floor plan notes
payable, non-trade, net
|
|
156.1
|
|
187.6
|
|
Adjust: finance
receivables activity
|
|
173.8
|
|
397.0
|
|
Less: Borrowings on
floor plan notes payable, non-trade associated with
acquired new vehicle inventory
|
|
(71.7)
|
|
(3.7)
|
|
Adjusted
|
|
$
550.6
|
|
$
531.9
|
|
LAD
Reconciliation of Certain Non-GAAP
Financial Measures (Unaudited)
(In millions, except for per share data)
|
|
Three Months Ended
March 31, 2024
|
|
As
reported
|
|
Acquisition
expenses
|
|
Adjusted
|
|
Selling, general and
administrative
|
$
934.3
|
|
$
(7.7)
|
|
$
926.6
|
|
Operating
income
|
341.4
|
|
7.7
|
|
349.1
|
|
|
|
|
|
|
|
Income before income
taxes
|
220.6
|
|
7.7
|
|
228.3
|
|
Income tax
provision
|
(55.6)
|
|
(1.6)
|
|
(57.2)
|
|
Net income
|
$
165.0
|
|
$
6.1
|
|
$
171.1
|
|
Net income attributable
to non-controlling interests
|
(1.5)
|
|
—
|
|
(1.5)
|
|
Net income attributable
to redeemable non-controlling interest
|
(0.9)
|
|
—
|
|
(0.9)
|
|
Net income attributable
to LAD
|
$
162.6
|
|
$
6.1
|
|
$
168.7
|
|
|
|
|
|
|
|
Diluted earnings per
share attributable to LAD
|
$
5.89
|
|
$
0.22
|
|
$
6.11
|
|
Diluted share
count
|
27.6
|
|
|
|
|
|
Three Months Ended
March 31, 2023
|
|
As
reported
|
|
Net disposal
gain on sale
of stores
|
|
Investment
loss
|
|
Insurance
reserves
|
|
Acquisition
expenses
|
|
Contract
buyouts
|
|
Adjusted
|
|
Selling, general and
administrative
|
$
764.4
|
|
$
7.2
|
|
$
—
|
|
$
(0.1)
|
|
$
(1.3)
|
|
$
(10.1)
|
|
$
760.1
|
|
Operating
income
|
379.0
|
|
(7.2)
|
|
—
|
|
0.1
|
|
1.3
|
|
10.1
|
|
383.3
|
|
Other income (expense),
net
|
2.0
|
|
—
|
|
0.5
|
|
—
|
|
—
|
|
—
|
|
2.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
314.3
|
|
(7.2)
|
|
0.5
|
|
0.1
|
|
1.3
|
|
10.1
|
|
319.1
|
|
Income tax (provision)
benefit
|
(84.7)
|
|
1.9
|
|
—
|
|
—
|
|
(0.2)
|
|
(2.7)
|
|
(85.7)
|
|
Net income
|
$
229.6
|
|
$
(5.3)
|
|
$
0.5
|
|
$
0.1
|
|
$
1.1
|
|
$
7.4
|
|
$
233.4
|
|
Net income attributable
to non-
controlling interests
|
(0.7)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(0.7)
|
|
Net income attributable
to
redeemable non-controlling interest
|
(0.2)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(0.2)
|
|
Net income attributable
to LAD
|
$
228.7
|
|
$
(5.3)
|
|
$
0.5
|
|
$
0.1
|
|
$
1.1
|
|
$
7.4
|
|
$
232.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
attributable to LAD
|
$
8.30
|
|
$
(0.19)
|
|
$
0.02
|
|
$
—
|
|
$
0.04
|
|
$
0.27
|
|
$
8.44
|
|
Diluted share
count
|
27.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LAD
Adjusted EBITDA and Net Debt to
Adjusted EBITDA (Unaudited)
(In millions)
|
|
|
Three months
ended
March 31,
|
|
%
|
|
|
|
Increase
|
|
|
2024
|
|
2023
|
|
(Decrease)
|
|
EBITDA and Adjusted
EBITDA
|
|
|
|
|
|
|
|
Net income
|
|
$ 165.0
|
|
$ 229.6
|
|
(28.1) %
|
|
Flooring interest
expense
|
|
60.7
|
|
27.7
|
|
119.1
|
|
Other interest
expense
|
|
63.6
|
|
39.0
|
|
63.1
|
|
Financing operations
interest expense
|
|
47.8
|
|
37.5
|
|
27.5
|
|
Income tax
expense
|
|
55.6
|
|
84.7
|
|
(34.4)
|
|
Depreciation and
amortization
|
|
57.8
|
|
47.3
|
|
22.2
|
|
Financing operations
depreciation expense
|
|
18.0
|
|
2.3
|
|
682.6 %
|
|
EBITDA
|
|
$ 468.5
|
|
$ 468.1
|
|
0.1 %
|
|
|
|
|
|
|
|
|
Other
adjustments:
|
|
|
|
|
|
|
|
Less: flooring interest
expense
|
|
$ (60.7)
|
|
$ (27.7)
|
|
119.1
|
|
Less: financing
operations interest expense
|
|
(47.8)
|
|
(37.5)
|
|
27.5
|
|
Less: used vehicle line
of credit interest
|
|
(6.2)
|
|
(1.5)
|
|
313.3
|
|
Add: acquisition
expenses
|
|
7.7
|
|
1.3
|
|
492.3
|
|
Less: loss (gain) on
divestitures
|
|
—
|
|
(7.2)
|
|
NM
|
|
Add: investment
loss
|
|
—
|
|
0.5
|
|
NM
|
|
Add: insurance
reserves
|
|
—
|
|
0.1
|
|
NM
|
|
Add: contract
buyouts
|
|
—
|
|
10.1
|
|
NM
|
|
Adjusted
EBITDA
|
|
$
361.5
|
|
$
406.2
|
|
(11.0) %
|
|
NM - not
meaningful
|
|
|
As of
|
|
%
|
|
|
March
31,
|
|
Increase
|
|
Net Debt to Adjusted
EBITDA
|
|
2024
|
|
2023
|
|
(Decrease)
|
|
Floor plan notes
payable: non-trade
|
|
$ 2,428.7
|
|
$ 1,664.9
|
|
45.9 %
|
|
Floor plan notes
payable
|
|
2,533.3
|
|
999.3
|
|
153.5
|
|
Used and service loaner
vehicle inventory financing facility
|
|
912.7
|
|
843.6
|
|
8.2
|
|
Revolving lines of
credit
|
|
1,610.5
|
|
1,012.4
|
|
59.1
|
|
Warehouse
facilities
|
|
636.0
|
|
875.0
|
|
(27.3)
|
|
Non-recourse notes
payable
|
|
1,831.5
|
|
825.4
|
|
121.9
|
|
4.625% Senior notes due
2027
|
|
400.0
|
|
400.0
|
|
—
|
|
4.375% Senior notes due
2031
|
|
550.0
|
|
550.0
|
|
—
|
|
3.875% Senior notes due
2029
|
|
800.0
|
|
800.0
|
|
—
|
|
Finance leases and
other debt
|
|
880.6
|
|
651.5
|
|
35.2
|
|
Unamortized debt
issuance costs
|
|
(30.2)
|
|
(30.6)
|
|
(1.3)
|
|
Total debt
|
|
$
12,553.1
|
|
$ 8,591.5
|
|
46.1 %
|
|
|
|
|
|
|
|
|
Less: Floor plan
related debt
|
|
$
(5,874.7)
|
|
$
(3,507.8)
|
|
67.5 %
|
|
Less: Financing
operations related debt
|
|
(2,467.5)
|
|
(1,700.4)
|
|
45.1
|
|
Less: Unrestricted cash
and cash equivalents
|
|
(264.4)
|
|
(184.9)
|
|
43.0
|
|
Less: Marketable
securities
|
|
(49.9)
|
|
—
|
|
—
|
|
Less: Availability on
used vehicle and service loaner financing facilities
|
|
(31.7)
|
|
(5.9)
|
|
437.3
|
|
Net
Debt
|
|
$
3,864.9
|
|
$
3,192.5
|
|
21.1 %
|
|
|
|
|
|
|
|
|
TTM Adjusted
EBITDA
|
|
$
1,721.4
|
|
$
1,875.0
|
|
(8.2) %
|
|
|
|
|
|
|
|
|
Net debt to Adjusted
EBITDA
|
|
2.25
x
|
|
1.70
x
|
|
|
|
NM - not
meaningful
|
|
|
|
|
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/lithia--driveway-lad-reports-record-first-quarter-revenue-of-8-6-billion-23-increase-302125495.html
SOURCE Lithia Motors, Inc.
