Declares Dividend of $0.31 Per Share for
Second Quarter
Lithia Motors, Inc. (NYSE: LAD) today reported second quarter
2020 revenue of $2.8 billion.
Second quarter 2020 net income per diluted share was $3.38, a
29% increase from $2.63 per diluted share reported in the second
quarter of 2019. Adjusted second quarter 2020 net income per
diluted share was $3.72, a 26% increase compared to adjusted net
income of $2.95 per diluted share in the same period of 2019.
Second quarter 2020 net income was $78 million, a 26% increase
compared to net income of $62 million in the same period of 2019.
Adjusted second quarter 2020 net income was $86 million, a 23%
increase compared to adjusted net income of $69 million for the
same period of 2019.
As shown in the attached non-GAAP reconciliation tables, the
2020 second quarter adjusted results exclude a $0.34 net non-core
charge related to an impairment charge, insurance reserves and
acquisition expenses, partially offset by a net gain on sale of
stores and a beneficial tax attribute. The 2019 second quarter
adjusted results exclude a $0.32 net non-core charge due to a net
loss on sale of stores, insurance reserves, and acquisition
expenses.
Second Quarter-over-Quarter Operating Highlights:
- Same store new vehicle sales decreased 23.5 %
- Same store used vehicle retail sales increased 0.5%
- Same store F&I per unit increased 9.4% to $1,590
- Same store total gross profit per unit increased 11.4% to
$4,030
- SG&A as a percentage of gross profit improved 540bps to
64.7%
"The strong sequential improvements throughout the quarter,
coupled with our stores' responsiveness to the current environment,
led us to the highest quarterly adjusted earnings per share in our
company's history," said Bryan DeBoer, President and CEO. "This
record performance illustrates the massive opportunity that exists
within our $2 trillion industry that we are unlocking through
continued growth and the activation of our ecommerce digital home
solutions."
For the first six months of 2020 revenues decreased 8% to $5.6
billion, compared to $6.1 billion in 2019.
Net income for the first six months of 2020 was $5.32 per
diluted share, compared to $5.08 per diluted share in 2019, an
increase of 5%. Adjusted net income per diluted share for the first
six months of 2020 increased 5% to $5.70 from $5.42 in the same
period of 2019.
Corporate Development
In July, we announced the acquisitions of Smolich CJDR and
Nissan in Bend, Oregon and Ladin Subaru in Thousand Oaks,
California. These acquisitions are anticipated to generate $160
million in annualized steady state revenues. For the year, this
brings our total anticipated annualized revenue from acquired
locations to $320 million and expanded our density in both the
Southwest and Northwest regions.
Balance Sheet Update
We ended the second quarter with over $750 million in cash and
availability on our revolving lines of credit. Earlier this month,
we closed on a $255 million syndicated real estate revolving line
of credit, bringing our current total cash and available credit to
over $1 billion. Our unfinanced real estate could provide
additional liquidity of approximately $250 million.
"The acquisition market is robust and we are accelerating the
build out of our coast-to-coast network enabling us to serve
customers wherever, whenever, and however they desire," said
DeBoer. "Our balance sheet is in the strongest position in our
company's history and we are well positioned to accelerate our plan
to reach 5% national market share."
Dividend Payment
Our Board of Directors approved increasing our dividend to $0.31
per share. We expect to pay the dividend on August 28, 2020 to
shareholders of record on August 14, 2020.
Second Quarter Earnings Conference Call and Updated
Presentation
The second quarter 2020 conference call may be accessed at 10:00
a.m. ET today by telephone at 877-407-8029. An updated presentation
highlighting the second quarter 2020 results has been added to our
investor relations website. To listen live on our website or for
replay, visit www.lithiainvestorrelations.com and click on
webcasts.
About Lithia
Lithia Motors, Inc. is a leading provider of personal
transportation solutions in the United States and is among the
fastest growing companies in the Fortune 500 (#252-2020). Lithia's
rapid growth is powered by people, an industry leading
coast-to-coast physical network and ecommerce digital home
solutions. Lithia increases market share and optimizes
profitability by focusing on the consumer experience and applying
proprietary performance measurement systems fueled by data science.
Lithia's unique growth model generates significant cash flows,
which funds innovations and the expansion of its nationwide
network, creating personal transportation solutions wherever,
whenever and however consumers desire.
Sites www.lithia.com www.lithiainvestorrelations.com
www.lithiacareers.com
Lithia Motors on Facebook
http://www.facebook.com/LithiaMotors
Lithia Motors on Twitter
http://twitter.com/lithiamotors
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 sales
levels;
- Anticipated impacts on consumer demand or governmental
restrictions related to the COVID-19 pandemic or otherwise;
- Expected level of business interruption due to shelter in place
policies or lifting of those restrictions, and when volumes and
consumer demand will return;
- Continuation of our sales and services, including in-store
appointments and home deliveries;
- Expected growth from our ecommerce home solutions and digital
strategies;
- Expected operating results, such as improved store performance;
continued improvement of selling, general and administrative
expenses ("SG&A") as a percentage of gross profit and all
projections;
- Anticipated integration, success and growth of acquired
stores;
- Anticipated ability to capture additional market share;
- Anticipated ability to find accretive acquisitions;
- Expected revenues from acquired stores;
- Anticipated synergies, ability to monetize our investment in
digital innovation;
- Anticipated additions of dealership locations to our portfolio
in the future;
- Anticipated financial condition and liquidity, including from
our cash, availability on our credit facility and unfinanced real
estate;
- Anticipated use of proceeds from our financings;
- Anticipated allocations, uses and levels of capital
expenditures in the future;
- Expectations regarding compliance with financial and
restrictive covenants in our credit facility and other debt
agreements; and
- Our strategies for customer retention, growth, market position,
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 economic and financial conditions (both nationally and
locally), including as a result of the COVID-19 pandemic;
- Changes in customer demand, our relationship with, and the
financial and operational stability of, vehicle manufacturers and
other suppliers;
- Risks associated with our indebtedness (including available
borrowing capacity, compliance with financial covenants and ability
to refinance or repay indebtedness on favorable terms);
- The adequacy of our cash flow and earnings and other conditions
which may affect our ability to pay our quarterly dividend at the
planned level;
- Disruptions to our technology network including computer
systems and software, as well as natural events such as severe
weather, fires, floods and earthquakes or man-made or other
disruptions of our operating systems, structures, facilities or
equipment; and
- Government regulations and legislation, and other 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, Item 8.01 in our Form 8-K filed on April 13, 2020, 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.
Lithia Motors, Inc.
Consolidated Statements of
Operations (Unaudited)
(In millions except per share data)
Three months ended June
30,
%
Six months ended June
30,
%
Increase
Increase
2020
2019
(Decrease)
2020
2019
(Decrease)
Revenues:
New vehicle retail
$
1,367.8
$
1,707.4
(19.9
)%
$
2,741.3
$
3,168.5
(13.5
)%
Used vehicle retail
922.2
888.3
3.8
1,796.5
1,716.2
4.7
Used vehicle wholesale
51.3
81.7
(37.2
)
118.0
159.1
(25.8
)
Finance and insurance
124.9
129.0
(3.2
)
246.7
246.5
0.1
Service, body and parts
275.5
335.5
(17.9
)
605.4
652.9
(7.3
)
Fleet and other
16.9
79.8
(78.8
)
54.4
128.2
(57.6
)
Total revenues
2,758.6
3,221.7
(14.4
)%
5,562.3
6,071.4
(8.4
)%
Cost of sales:
New vehicle retail
1,275.6
1,612.0
(20.9
)
2,570.9
2,987.2
(13.9
)
Used vehicle retail
823.9
795.1
3.6
1,608.3
1,538.4
4.5
Used vehicle wholesale
49.2
79.9
(38.4
)
115.3
156.4
(26.3
)
Service, body and parts
131.1
165.2
(20.6
)
292.8
323.1
(9.4
)
Fleet and other
14.4
75.9
(81.0
)
49.7
122.0
(59.3
)
Total cost of sales
2,294.2
2,728.1
(15.9
)
4,637.0
5,127.1
(9.6
)
Gross profit
464.4
493.6
(5.9
)%
925.3
944.3
(2.0
)%
Asset impairments
7.9
—
NM
7.9
0.5
NM
SG&A expense
304.5
356.5
(14.6
)
650.5
678.3
(4.1
)
Depreciation and amortization
22.3
20.2
10.4
44.3
40.0
10.8
Income from operations
129.7
116.9
10.9
%
222.6
225.5
(1.3
)%
Floor plan interest expense
(8.1
)
(19.4
)
(58.2
)
(22.1
)
(37.5
)
(41.1
)
Other interest expense
(16.8
)
(15.0
)
12.0
(33.8
)
(30.3
)
11.6
Other income, net
3.5
3.0
NM
5.8
5.6
NM
Income before income taxes
108.3
85.5
26.7
%
172.5
163.3
5.6
%
Income tax expense
(30.6
)
(23.6
)
29.7
(48.6
)
(45.0
)
8.0
Income tax rate
28.3
%
27.6
%
28.2
%
27.6
%
Net income
$
77.7
$
61.9
25.5
%
$
123.9
$
118.3
4.7
%
Diluted net income per share:
Net income per share
$
3.38
$
2.63
28.5
%
$
5.32
$
5.08
4.7
%
Diluted shares outstanding
23.0
23.5
(2.1
) %
23.3
23.3
—
%
NM - not meaningful
Lithia Motors, Inc.
Key Performance Metrics
(Unaudited)
Three months ended June
30,
%
Six months ended June
30,
%
Increase
Increase
2020
2019
(Decrease)
2020
2019
(Decrease)
Gross
margin
New vehicle retail
6.7
%
5.6
%
110
bps
6.2
%
5.7
%
50
bps
Used vehicle retail
10.7
10.5
20
10.5
10.4
10
Finance and insurance
100.0
100.0
—
100.0
100.0
—
Service, body and parts
52.4
50.8
160
51.6
50.5
110
Gross profit margin
16.8
15.3
150
16.6
15.6
100
Unit
sales
New vehicle retail
34,869
45,887
(24.0
)%
70,776
85,582
(17.3
)%
Used vehicle retail
43,505
42,865
1.5
86,136
83,540
3.1
Total retail units sold
78,374
88,752
(11.7
)
156,912
169,122
(7.2
)
Average selling
price
New vehicle retail
$
39,226
$
37,208
5.4
%
$
38,732
$
37,023
4.6
%
Used vehicle retail
21,196
20,724
2.3
20,857
20,543
1.5
Average gross
profit per unit
New vehicle retail
$
2,643
$
2,078
27.2
%
$
2,407
$
2,119
13.6
%
Used vehicle retail
2,259
2,174
3.9
2,185
2,128
2.7
Finance and insurance
1,593
1,453
9.6
1,572
1,457
7.9
Total vehicle(1)
4,050
3,598
12.6
3,875
3,596
7.8
Revenue
mix
New vehicle retail
49.6
%
53.0
%
49.3
%
52.2
%
Used vehicle retail
33.4
27.6
32.3
28.3
Used vehicle wholesale
1.9
2.5
2.1
2.6
Finance and insurance, net
4.5
4.0
4.4
4.1
Service, body and parts
10.0
10.4
10.9
10.8
Fleet and other
0.6
2.5
1.0
2.0
Gross Profit
Mix
New vehicle retail
19.8
%
19.3
%
18.4
%
19.2
%
Used vehicle retail
21.2
18.9
20.3
18.8
Used vehicle wholesale
0.5
0.4
0.3
0.3
Finance and insurance, net
26.9
26.1
26.7
26.1
Service, body and parts
31.0
34.5
33.8
34.9
Fleet and other
0.6
0.8
0.5
0.7
Adjusted
As reported
Adjusted
As reported
Three months ended June
30,
Three months ended June
30,
Six months ended June
30,
Six months ended June
30,
Other
metrics
2020
2019
2020
2019
2020
2019
2020
2019
SG&A as a % of revenue
10.9
%
10.7
%
11.0
%
11.1
%
11.6
%
11.0
%
11.7
%
11.2
%
SG&A as a % of gross profit
64.7
70.1
65.6
72.2
69.7
70.7
70.3
71.8
Operating profit as a % of revenue
5.1
3.9
4.7
3.6
4.2
3.9
4.0
3.7
Operating profit as a % of gross
profit
30.5
25.8
27.9
23.7
25.5
25.0
24.1
23.9
Pretax margin
4.4
3.0
3.9
2.7
3.3
2.9
3.1
2.7
Net profit margin
3.1
2.2
2.8
1.9
2.4
2.1
2.2
1.9
(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
Lithia Motors, Inc.
Same Store Operating Highlights
(Unaudited)
Three months ended June
30,
%
Six months ended June
30,
%
Increase
Increase
2020
2019
(Decrease)
2020
2019
(Decrease)
Revenues
New vehicle retail
$
1,277.9
$
1,670.2
(23.5
)%
$
2,550.9
$
3,092.8
(17.5
)%
Used vehicle retail
869.6
865.4
0.5
1,695.6
1,668.5
1.6
Finance and insurance
116.9
125.6
(6.9
)
230.4
240.0
(4.0
)
Service, body and parts
259.0
326.4
(20.6
)
567.2
632.4
(10.3
)
Total revenues
2,587.4
3,146.2
(17.8
)
5,206.4
5,912.7
(11.9
)
Gross
profit
New vehicle retail
$
85.2
$
93.7
(9.1
) %
$
157.8
$
177.6
(11.1
)%
Used vehicle retail
92.0
91.5
0.5
175.7
174.3
0.8
Finance and insurance
116.9
125.6
(6.9
)
230.4
240.0
(4.0
)
Service, body and parts
135.6
166.0
(18.3
)
292.8
320.2
(8.6
)
Total gross profit
434.4
482.4
(10.0
)
864.3
921.1
(6.2
)
Gross
margin
New vehicle retail
6.7
%
5.6
%
110
bps
6.2
%
5.7
%
50
bps
Used vehicle retail
10.6
10.6
—
10.4
10.4
—
Finance and insurance
100.0
100.0
—
100.0
100.0
—
Service, body and parts
52.4
50.8
160
51.6
50.6
100
Gross profit margin
16.8
15.3
150
16.6
15.6
100
Unit
sales
New vehicle retail
32,461
44,700
(27.4
)%
65,341
83,173
(21.4
)%
Used vehicle retail
41,030
41,676
(1.6
)
81,094
80,967
0.2
Average selling
price
New vehicle retail
$
39,366
$
37,364
5.4
%
$
39,039
$
37,185
5.0
%
Used vehicle retail
21,194
20,766
2.1
20,910
20,607
1.5
Average gross
profit per unit
New vehicle retail
$
2,625
$
2,095
25.3
%
$
2,415
$
2,136
13.1
%
Used vehicle retail
2,243
2,195
2.2
2,167
2,153
0.7
Finance and insurance
1,590
1,454
9.4
1,573
1,462
7.6
Total vehicle(1)
4,030
3,618
11.4
3,870
3,622
6.8
(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
Lithia Motors, Inc.
Other Highlights (Unaudited)
Financial
covenants
Requirement
As of June 30, 2020
Current ratio
Not less than 1.10 to 1
1.37 to 1
Fixed charge coverage ratio
Not less than 1.20 to 1
2.78 to 1
Leverage ratio
Not more than 5.75 to 1
2.60 to 1
Lithia Motors, Inc.
Condensed Consolidated Balance
Sheets (Unaudited)
(In millions)
June 30, 2020
December 31, 2019
Cash and cash equivalents
$
120.3
$
84.0
Trade receivables, net
446.4
505.0
Inventories, net
1,812.8
2,433.7
Other current assets
50.6
47.8
Total current assets
$
2,430.1
$
3,070.5
Property and equipment, net
1,663.0
1,611.7
Intangibles
947.7
761.3
Other non-current assets
498.2
640.4
Total assets
$
5,539.0
$
6,083.9
Floor plan notes payable
1,460.6
2,067.6
Other current liabilities
565.8
501.5
Total current liabilities
$
2,026.4
$
2,569.1
Long-term debt
1,357.9
1,430.6
Other long-term liabilities and deferred
revenue
622.5
616.5
Total liabilities
$
4,006.8
$
4,616.2
Stockholder's Equity
1,532.2
1,467.7
Total liabilities & stockholders'
equity
$
5,539.0
$
6,083.9
Lithia Motors, Inc.
Summarized Cash Flow from
Operations (Unaudited)
(In millions)
Six months ended June
30,
2020
2019
Net income
$
123.9
$
118.3
Adjustments to reconcile net income to net
cash provided by operating activities:
Asset impairments
7.9
0.5
Depreciation and amortization
44.3
40.0
Stock-based compensation
10.0
7.4
Gain on disposal of assets
(0.3
)
—
Gain on sale of franchises
(1.4
)
0.3
Deferred income taxes
(4.9
)
7.6
(Increase) decrease:
Trade receivables, net
53.8
40.1
Inventories
624.7
(63.0
)
Other assets
(10.6
)
6.4
Increase (decrease):
Floor plan notes payable, net
(130.7
)
89.7
Trade payables
0.3
3.5
Accrued liabilities
51.1
(8.8
)
Other long-term liabilities and deferred
revenue
21.9
2.4
Net cash provided by operating
activities
$
790.0
$
244.4
Lithia Motors, Inc.
Reconciliation of Non-GAAP Cash Flow
from Operations (Unaudited)
(In millions)
Six months ended June
30,
Net cash provided by
operating activities
2020
2019
As reported
$
790.0
$
244.4
Floor plan notes payable, non-trade,
net
(456.8
)
(11.1
)
Less: Borrowings on floor plan notes
payable, non-trade associated with acquired new vehicle
inventory
(22.3
)
(19.3
)
Adjusted
$
310.9
$
214.0
Lithia Motors, Inc.
Reconciliation of Certain Non-GAAP
Financial Measures (Unaudited)
(In millions, except for per share
data)
Three Months Ended June 30,
2020
As reported
Disposal gain on sale of
stores
Asset impairment
Insurance reserves
Acquisition expenses
Tax attribute
Adjusted
Asset impairments
$
7.9
$
—
$
(7.9
)
$
—
$
—
$
—
$
—
Selling, general and administrative
304.5
1.3
—
(5.0
)
(0.5
)
—
300.3
Operating income
129.7
(1.3
)
7.9
5.0
0.5
—
141.8
Income before income taxes
108.3
(1.3
)
7.9
5.0
0.5
—
120.4
Income tax (provision) benefit
(30.6
)
0.4
(2.3
)
(1.4
)
(0.2
)
(0.8
)
(34.9
)
Net income
$
77.7
$
(0.9
)
$
5.6
$
3.6
$
0.3
$
(0.8
)
$
85.5
Diluted earnings per share
$
3.38
$
(0.04
)
$
0.24
$
0.16
$
0.01
$
(0.03
)
$
3.72
Diluted share count
23.0
Three Months Ended June 30,
2019
As reported
Disposal loss on sale of
stores
Insurance reserves
Acquisition expenses
Adjusted
Selling, general and administrative
$
356.5
$
(0.4
)
$
(8.4
)
$
(1.5
)
$
346.2
Operating income
116.9
0.4
8.4
1.5
127.2
Income before income taxes
85.5
0.4
8.4
1.5
95.8
Income tax (provision) benefit
(23.6
)
(0.1
)
(2.3
)
(0.4
)
(26.4
)
Net income
$
61.9
$
0.3
$
6.1
$
1.1
$
69.4
Diluted earnings per share
$
2.63
$
0.01
$
0.26
$
0.05
$
2.95
Diluted share count
23.5
Lithia Motors, Inc.
Reconciliation of Certain Non-GAAP
Financial Measures (Unaudited)
(In millions, except for per share
data)
Six Months Ended June 30,
2020
As reported
Disposal gain on sale of
stores
Asset impairment
Insurance reserves
Acquisition expenses
Tax attribute
Adjusted
Asset impairments
$
7.9
$
—
$
(7.9
)
$
—
$
—
$
—
$
—
Selling, general and administrative
650.5
1.4
—
(5.8
)
(1.0
)
—
645.1
Operating income
222.6
(1.4
)
7.9
5.8
1.0
—
235.9
Income before income taxes
172.5
(1.4
)
7.9
5.8
1.0
—
185.8
Income tax (provision) benefit
(48.6
)
0.4
(2.3
)
(1.6
)
(0.3
)
(0.8
)
(53.2
)
Net income
$
123.9
$
(1.0
)
$
5.6
$
4.2
$
0.7
$
(0.8
)
$
132.6
Diluted earnings per share
$
5.32
$
(0.04
)
$
0.24
$
0.18
$
0.03
$
(0.03
)
$
5.70
Diluted share count
23.3
Six Months Ended June 30,
2019
As reported
Disposal loss on sale of
stores
Asset impairment
Insurance reserves
Acquisition expenses
Adjusted
Asset impairments
$
0.5
$
—
$
(0.5
)
$
—
$
—
$
—
Selling, general and administrative
678.3
(0.3
)
—
(8.4
)
(1.7
)
667.9
Operating income
225.5
0.3
0.5
8.4
1.7
236.4
Income before income taxes
163.3
0.3
0.5
8.4
1.7
174.2
Income tax (provision) benefit
(45.0
)
(0.1
)
(0.1
)
(2.3
)
(0.5
)
(48.0
)
Net income
$
118.3
$
0.2
$
0.4
$
6.1
$
1.2
$
126.2
Diluted earnings per share
$
5.08
$
0.01
$
0.02
$
0.26
$
0.05
$
5.42
Diluted share count
23.3
Lithia Motors, Inc.
Adjusted EBITDA and Net Debt to
Adjusted EBITDA (Unaudited)
(In millions)
Three months ended June
30,
%
Six months ended June
30,
%
Increase
Increase
2020
2019
(Decrease)
2020
2019
(Decrease)
EBITDA and Adjusted EBITDA
Net income
$
77.7
$
61.9
25.5
%
$
123.9
$
118.3
4.7
%
Flooring interest expense
8.1
19.4
(58.2
)
22.1
37.5
(41.1
)
Other interest expense
16.8
15.0
12.0
33.8
30.3
11.6
Income tax expense
30.6
23.6
29.7
48.6
45.0
8.0
Depreciation and amortization
22.3
20.2
10.4
44.3
40.0
10.8
EBITDA
$
155.5
$
140.1
11.0
%
$
272.7
$
271.1
0.6
%
Other adjustments:
Less: flooring interest expense
$
(8.1
)
$
(19.4
)
(58.2
)
$
(22.1
)
$
(37.5
)
(41.1
)
Less: used vehicle line of credit
interest
(0.1
)
(1.1
)
(90.9
)
(0.3
)
(2.7
)
(88.9
)
Add: acquisition expenses
0.5
1.5
(66.7
)
1.0
1.7
(41.2
)
Less: gain on divestitures
(1.3
)
0.4
(425.0
)
(1.4
)
0.3
(566.7
)
Add: insurance reserve
5.0
8.4
(40.5
)
5.8
8.4
(31.0
)
Add: asset impairment
7.9
—
NM
7.9
0.5
NM
Adjusted EBITDA
$
159.4
$
129.9
22.7
%
$
263.6
$
241.8
9.0
%
NM - not meaningful
As of
%
June 30,
Increase
Net Debt to
Adjusted EBITDA
2020
2019
(Decrease)
Floor plan notes payable: non-trade
$
1,168.6
$
1,709.6
(31.6
)%
Floor plan notes payable
292.0
414.1
(29.5
)
Used and service loaner vehicle inventory
financing facility
40.0
320.0
(87.5
)
Revolving lines of credit
—
104.5
NM
Real estate mortgages
636.9
596.7
6.7
5.250% Senior notes due 2025
300.0
300.0
—
4.625% Senior notes due 2027
400.0
—
NM
Other debt
48.0
33.8
42.0
Unamortized debt issuance costs
(10.4
)
(5.5
)
89.1
Total debt
$
2,875.1
$
3,473.2
(17.2
)%
Less: Floor plan related debt
$
(1,500.6
)
$
(2,443.7
)
(38.6
)%
Less: Cash and cash equivalents
(120.3
)
(44.7
)
169.1
Less: Availability on used vehicle and
service loaner financing facility
(281.9
)
(1.9
)
NM
Net Debt
$
972.3
$
982.9
(1.1
)%
TTM Adjusted EBITDA
$
539.7
$
482.4
11.9
%
Net debt to Adjusted EBITDA
1.80
x
2.04
x
(11.8
)%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200722005285/en/
Eric Pitt VP, Investor Relations and Treasurer EPitt@lithia.com
(541) 864-1748
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