In This Article:
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Diluted Earnings Per Share (EPS): $7.94, a 34.8% year-over-year increase.
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Adjusted Diluted EPS: $7.66, a 25.4% increase year-over-year.
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Revenue: $9.2 billion, a 7% increase from Q1 of last year.
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Same-Store Sales Revenue Increase: 2.5% year-over-year.
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Same-Store Gross Profit Increase: 1.8% year-over-year.
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Total Unit Sales Increase: 1.5% year-over-year.
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New Vehicle Units Increase: 3.6% year-over-year.
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Value Auto Sales Increase: 38.8% year-over-year.
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Adjusted SG&A as a Percentage of Gross Profit: 68.2%, a 120 basis point decline from the prior year.
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Free Cash Flow: $276 million generated in the first quarter.
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Share Repurchases: $146 million, nearly 2% of outstanding shares repurchased.
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Adjusted EBITDA: $402.1 million, a 17.1% increase year-over-year.
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Net Leverage: 2.5 times, in line with long-term target.
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DFC Loan Originations: $623 million during the quarter, a 24% sequential increase.
Release Date: April 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Lithia Motors Inc (NYSE:LAD) reported a 34.8% year-over-year increase in diluted earnings per share, reaching $7.94.
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The company achieved record revenues of $9.2 billion in the first quarter, marking a 7% increase from the previous year.
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Lithia Motors Inc (NYSE:LAD) experienced significant growth in its value auto sales, with a 38.8% improvement year-over-year.
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The company's financing operations, led by Driveway Finance Corporation (DFC), delivered strong profitability with a net interest margin expansion of 117 basis points year-over-year.
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Lithia Motors Inc (NYSE:LAD) repurchased nearly 2% of its outstanding shares in the first quarter, reflecting a balanced capital allocation strategy.
Negative Points
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The company faced challenges with tariffs, although it managed to mitigate some impacts due to its diversified inventory.
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Same-store gross profit per unit decreased by $144 compared to the same period last year.
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Used vehicle sales were down slightly by 0.4% year-over-year, indicating some challenges in this segment.
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The company anticipates potential lumpiness in sales due to tariff impacts, particularly in the fall.
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Lithia Motors Inc (NYSE:LAD) noted that the ABS term market is currently frothy and choppy, which could impact future financing operations.
Q & A Highlights
Q: Can you provide insights into the current tariff environment and its impact on demand and inventory levels? A: Bryan DeBoer, President and CEO, explained that Lithia Motors is well-positioned with 45% of its inventory unaffected by current tariffs. The company has reduced inventory levels by nearly 10 days quarter-over-quarter, and the focus remains on dynamic store leadership to adapt to brand and market demands. The quarter saw consistent performance, and the company is optimistic about Q2, with manufacturers stabilizing pricing through the 2025 model year.