Announces Dividend of $0.55 per Share for Second Quarter
Lithia & Driveway (NYSE: LAD) today reported the highest second quarter revenue in company history, and a 25% increase in diluted earnings per share compared to the same period in 2024.
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Secondquarter 2025 revenue increased 4% to $9.6 billion from $9.2 billion in the second quarter of 2024.
Secondquarter 2025 diluted earnings per share attributable to LAD was $9.87, a 25% increase from $7.87 per share reported in the second quarter of 2024. Second quarter 2025 adjusted diluted earnings per share attributable to LAD was $10.24, a 30% increase compared to $7.87 per share in the same period of 2024. Unrealized gains on our investment in Pinewood Technologies Group PLC contributed $1.03 to diluted earnings per share for the quarter.
Secondquarter 2025 net income was $258 million, a 19.2% increase compared to net income of $217 million in the same period of 2024. Adjusted second quarter 2025 net income was $268 million, a 24% increase compared to adjusted net income of $217 million for the same period of 2024.
As shown in the attached non-GAAP reconciliation tables, the 2025 second quarter adjusted results exclude a $0.37 per diluted share impact resulting from non-core items, including a net loss on the disposal of stores, insurance reserves, and acquisition expenses, partially offset by tax attributes. The 2024 second quarter adjusted results had offsetting non-core items related to insurance reserves, tax attributes, and acquisition expenses.
Key Second Quarter 2025 Highlights:
— Total gross profits increased 4.3% compared to second quarter 2024
— Aftersales gross profit increased 11.5% compared to second quarter 2024
— Financing operations generated profitability of $20 million, a 179% increase year-over-year
— Driveway Finance Corporation (DFC) originated $731 million in loans, with U.S. penetration increasing to 14.8% and net interest margin increasing to 4.6%
— Repurchased 1.5% of outstanding shares
“Building on continued strength across our core operations, Lithia & Driveway's differentiated design once again powered record performance in the second quarter as we delivered a 25% year-over-year increase in diluted EPS. Operational excellence across the business translated into robust growth” said Bryan DeBoer, President and CEO. “The scalability of our omnichannel ecosystem, including Driveway, DFC, and our recent acquisitions is driving market-share gains, earnings growth and capital efficiency for our shareholders. We are well positioned to accelerate our growth in the second half of 2025 and beyond.”
For the first six months of 2025 revenues increased 5% to $18.8 billion, compared to $17.8 billion in 2024.
Diluted earnings per share attributable to LAD for the first six months of 2025 was $17.80, compared to $13.75 per share in 2024, an increase of 29%. Adjusted diluted earnings per share attributable to LAD for the first six months of 2025 increased28% to $17.88 from $13.97 in the same period of 2024. Unrealized gains on our investment in Pinewood Technologies Group PLC contributed $0.75 to diluted earnings per share for the year.
Corporate Development In June 2025, LAD continued to expand its network in the Southeast region with the acquisition of the two Mercedes-Benz stores in Collierville, Tennessee and Jackson, Mississippi. These additions add $220 million of expected annualized revenue.
Year-to-date, we have acquired $400million of expected annualized revenues.
Balance Sheet Update LAD ended the second quarter with approximately $1.3 billion in cash and cash equivalents, marketable securities, and availability on our revolving lines of credit.
Dividend Payment and Share Repurchases The Board of Directors approved a dividend of $0.55 per share related to second quarter 2025 financial results. The dividend is expected to be paid on August22, 2025 to shareholders of record on August8, 2025.
During the second quarter 2025, we repurchased approximately 387,000 shares at a weighted average price of $306. To date in 2025, we have repurchased approximately 791,000 shares at a weighed average price of $316. Under the current share repurchase authorization approximately $568.8 million remains available.
Chief People Officer Retirement Gary Glandon will retire from his current role as Chief People Officer at Lithia Motors, Inc. (the “Company”) effective December 31, 2025. Succession planning is underway and will be announced prior to Gary's retirement to ensure a seamless transition.
Second Quarter Earnings Conference Call and Updated Presentation The second quarter 2025 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 2025 results has been added to our investor relations website. To listen live on our website or for replay, visit investors.lithiadriveway.comand click on quarterly earnings.
About Lithia & Driveway (LAD) Lithia & Driveway (NYSE: LAD) is the largest global automotive retailer 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, fleet management offerings, 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
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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,” “ensure,” “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:
— Acceleration of the profitability of our strategy, earnings growth, and our momentum and market share
— Future market conditions, including anticipated car and other sales and gross profit levels and the supply of inventory
— Our business strategy and plans, including our achieving our long-term financial targets
— The growth, expansion, make-up and success of our network, including our finding accretive acquisitions that meet our target valuations and acquiring additional stores
— Annualized revenues from acquired stores or achieving target returns
— 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, including evolving vehicle distribution models
— 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 team member 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 inflation, governmental programs and spending, and public health issues
— The market for dealerships, including the availability of stores to us for an acceptable price
— Changes in customer demand and the electric vehicle landscape and the impact of evolving digital technologies
— Changes in our relationship with, and the financial and operational stability of, OEMs and other suppliers, and vehicle delivery models
— 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, which may include adjusted net income, adjusted net income attributable to LAD, adjusted net income attributable to non-controlling interests, adjusted net income attributable to redeemable non-controlling interest, adjusted diluted earnings per share attributable to LAD, adjusted SG&A, adjusted SG&A as a percentage of revenue and gross profit, adjusted operating income, adjusted net cash provided by operating activities, adjusted income before income taxes, adjusted income tax (provision) benefit, adjusted operating profit as a percentage of revenue and gross profit, adjusted pre-tax margin and net profit margin, EBITDA, adjusted EBITDA and net 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.
LADConsolidated Statements of Operations(Unaudited)(In millions except per share data) Three months ended June 30, % Six months ended June 30, % Increase Increase 2025 2024 (Decrease) 2025 2024 (Decrease)Revenues:New vehicle retail $ 4,498.4 $ 4,403.7 2.2% $ 8,878.6 $ 8,417.8 5.5%Used vehicle retail 3,094.8 2,986.0 3.6 6,013.9 5,786.8 3.9Used vehicle wholesale 383.1 289.5 32.3 714.1 627.2 13.9Finance and insurance 373.8 360.9 3.6 738.1 701.5 5.2Aftersales 1,023.4 950.7 7.6 2,002.5 1,863.5 7.5Fleet and other 209.5 241.0 (13.1) 414.0 396.8 4.3Total revenues 9,583.0 9,231.8 3.8% 18,761.2 17,793.6 5.4%Cost of sales:New vehicle retail 4,198.9 4,082.9 2.8 8,301.7 7,801.7 6.4Used vehicle retail 2,886.5 2,790.4 3.4 5,615.7 5,408.5 3.8Used vehicle wholesale 386.5 289.0 33.7 719.1 627.7 14.6Aftersales 433.1 421.3 2.8 850.7 832.1 2.2Fleet and other 192.9 224.3 (14.0) 378.6 364.5 3.9Total cost of sales 8,097.9 7,807.9 3.7 15,865.8 15,034.5 5.5Gross profit 1,485.1 1,423.9 4.3% 2,895.4 2,759.1 4.9%Finance operations income 20.1 7.2 179.2% 32.6 5.4 503.7%SG&A expense 1,014.7 975.2 4.1 1,967.4 1,909.5 3.0Depreciation and amortization 65.2 62.3 4.7 129.0 120.0 7.5Income from operations 425.3 393.6 8.1% 831.6 735.0 13.1%Floor plan interest expense (55.0) (76.6) (28.2) (112.0) (137.3) (18.4)Other interest expense (66.7) (61.2) 9.0 (132.2) (124.8) 5.9Other income 48.5 27.0 79.6 49.3 30.4 62.2Income before income taxes 352.1 282.8 24.5% 636.7 503.3 26.5%Income tax expense (93.9) (66.2) 41.8 (167.3) (121.8) 37.4Income tax rate 26.7% 23.4% 26.3% 24.2%Net income $ 258.2 $ 216.6 19.2% $ 469.4 $ 381.5 23.0%Net income attributable to non-controlling interests (2.1) (1.0) 110.0% (3.8) (2.5) 52.0%Net income attributable to redeemable non-controlling interest – (1.4) (100.0)% – (2.3) (100.0)%Net income attributable to LAD $ 256.1 $ 214.2 19.6% $ 465.6 $ 376.7 23.6%Diluted earnings per share attributable to LAD:Net income per share $ 9.87 $ 7.87 25.4% $ 17.80 $ 13.75 29.5%Diluted shares outstanding 25.9 27.2 (4.8)% 26.2 27.4 (4.4)%NM – not meaningful
LADKey Performance Metrics(Unaudited) Three months ended June 30, % Six months ended June 30, % Increase Increase 2025 2024 (Decrease) 2025 2024 (Decrease)Gross marginNew vehicle retail 6.7% 7.3% (60)bps 6.5% 7.3% (80)bpsUsed vehicle retail 6.7 6.5 20 6.6 6.5 10Finance and insurance 100.0 100.0 – 100.0 100.0 -Aftersales 57.7 55.7 200 57.5 55.3 220Gross profit margin 15.5 15.4 10 15.4 15.5 (10)Unit salesNew vehicle retail 94,144 92,508 1.8% 186,134 178,191 4.5%Used vehicle retail 109,053 109,249 (0.2) 216,379 211,685 2.2Average selling priceNew vehicle retail $ 47,782 $ 47,603 0.4% $ 47,700 $ 47,240 1.0%Used vehicle retail 28,379 27,332 3.8 27,793 27,337 1.7Average gross profit per unitNew vehicle retail $ 3,181 $ 3,467 (8.2)% $ 3,099 $ 3,457 (10.4)%Used vehicle retail 1,911 1,790 6.8 1,840 1,787 3.0Finance and insurance 1,840 1,789 2.9 1,834 1,799 1.9Total vehicle(1) 4,322 4,351 (0.7) 4,244 4,348 (2.4)Revenue mixNew vehicle retail 46.9% 47.7% 47.3% 47.3%Used vehicle retail 32.3 32.3 32.1 32.5Used vehicle wholesale 4.0 3.1 3.8 3.5Finance and insurance, net 3.9 3.9 3.9 3.9Aftersales 10.7 10.3 10.7 10.5Fleet and other 2.2 2.7 2.2 2.3Gross Profit MixNew vehicle retail 20.2% 22.5% 19.9% 22.3%Used vehicle retail 14.0 13.7 13.8 13.7Used vehicle wholesale (0.2) – (0.2) -Finance and insurance, net 25.2 25.3 25.5 25.4Aftersales 39.7 37.3 39.8 37.4Fleet and other 1.1 1.2 1.2 1.2
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 2025 2024 2025 2024 2025 2024 2025 2024SG&A as a % of revenue 10.5% 10.5% 10.6% 10.6% 10.5% 10.6% 10.5% 10.7%SG&A as a % of gross profit 67.7 67.9 68.3 68.5 67.9 68.6 67.9 69.2Operating profit as a % of revenue 4.5 4.3 4.4 4.3 4.4 4.2 4.4 4.1Operating profit as a % of gross profit 29.3 28.2 28.6 27.6 28.8 27.2 28.7 26.6Pretax margin 3.8 3.1 3.7 3.1 3.4 2.9 3.4 2.8Net profit margin 2.8 2.3 2.7 2.3 2.5 2.2 2.5 2.1(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
LADSame Store Operating Highlights (Unaudited) Three months ended June 30, % Six months ended June 30, % Increase Increase 2025 2024 (Decrease) 2025 2024 (Decrease)RevenuesNew vehicle retail $ 4,383.9 $ 4,299.6 2.0% $ 8,504.1 $ 8,208.1 3.6%Used vehicle retail 3,019.7 2,835.0 6.5 5,648.8 5,499.0 2.7Finance and insurance 366.0 350.4 4.5 708.7 682.5 3.8Aftersales 998.0 919.5 8.5 1,902.4 1,804.3 5.4Total revenues 9,345.2 8,974.1 4.1 17,816.7 17,258.4 3.2Gross profitNew vehicle retail $ 291.9 $ 311.6 (6.3)% $ 552.2 $ 599.1 (7.8)%Used vehicle retail 203.1 195.1 4.1 382.4 374.7 2.1Finance and insurance 366.0 350.4 4.5 708.7 682.5 3.8Aftersales 576.6 515.1 11.9 1,100.4 1,003.0 9.7Total gross profit 1,451.6 1,389.8 4.4 2,772.2 2,691.4 3.0Gross marginNew vehicle retail 6.7% 7.2% (50)bps 6.5% 7.3% (80)bpsUsed vehicle retail 6.7 6.9 (20) 6.8 6.8 -Finance and insurance 100.0 100.0 – 100.0 100.0 -Aftersales 57.8 56.0 180 57.8 55.6 220Gross profit margin 15.5 15.5 – 15.6 15.6 -Unit salesNew vehicle retail 91,947 90,179 2.0% 178,132 173,716 2.5%Used vehicle retail 106,894 102,875 3.9 202,766 199,460 1.7Average selling priceNew vehicle retail $ 47,679 $ 47,679 -% $ 47,740 $ 47,250 1.0%Used vehicle retail 28,249 27,558 2.5 27,859 27,569 1.1Average gross profit per unitNew vehicle retail $ 3,175 $ 3,455 (8.1)% $ 3,100 $ 3,449 (10.1)%Used vehicle retail 1,900 1,897 0.2 1,886 1,879 0.4Finance and insurance 1,841 1,815 1.4 1,860 1,829 1.7Total vehicle(1) 4,318 4,446 (2.9) 4,302 4,440 (3.1)(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
LADOther Highlights (Unaudited) Three months ended June 30, Six months ended June 30, 2025 2025Key Performance by Country Total Revenue Total Gross Profit Total Revenue Total Gross ProfitUnited States 78.1% 83.7% 77.6% 83.2%United Kingdom 18.3% 13.3% 19.2% 14.1%Canada 3.6% 3.0% 3.2% 2.7%
As of June 30, December 31, June 30,Days' Supply(1) 2025 2024 2024New vehicle inventory 63 59 76Used vehicle inventory 48 53 47
(1)Days' supply in inventory is calculated using on-ground inventory unit levels and a 30-day total unit sales volumes, both at the end of each reporting period.
Selected Financing Operations Financial Information Three months ended June 30, Six months ended June 30,($ in millions) 2025 % (1) 2024 % (1) 2025 % (1) 2024 % (1)Interest and fee income $ 98.8 9.2 $ 83.8 9.3 $ 193.2 9.3 $ 161.1 9.1Interest expense (49.8) (4.7) (47.0) (5.2) (97.9) (4.7) (94.8) (5.4)Total interest margin $ 49.0 4.6 $ 36.8 4.1 $ 95.3 4.6 $ 66.3 3.8Lease income 23.7 20.5 44.2 35.6Lease costs (18.6) (18.8) (35.4) (29.5)Lease income, net 5.1 1.7 8.8 6.1Provision expense (21.2) (2.0) (20.2) (2.2) (46.7) (2.2) (45.2) (2.6)Other financing operations expenses (12.8) (1.2) (11.1) (1.2) (24.8) (1.2) (21.8) (1.2)Finance operations income $ 20.1 $ 7.2 $ 32.6 $ 5.4Total average managed finance receivables $ 4,287.6 $ 3,632.0 $ 4,196.6 $ 3,544.2(1) Annualized percentage of total average managed finance receivables
LADCondensed Consolidated Balance Sheets (Unaudited)(In millions) June 30, 2025 December 31, 2024Cash, restricted cash, and cash equivalents $ 404.4 $ 402.2Trade receivables, net 1,235.3 1,237.0Inventories, net 6,061.9 5,911.7Other current assets 240.2 223.0Total current assets $ 7,941.8 $ 7,773.9Property and equipment, net 4,727.7 4,629.9Finance receivables, net 4,309.5 3,868.2Intangibles 5,241.8 4,665.8Other non-current assets 1,940.2 2,184.8Total assets $ 24,161.0 $ 23,122.6Floor plan notes payable 4,888.0 4,903.1Other current liabilities 1,625.5 1,648.0Total current liabilities $ 6,513.5 $ 6,551.1Long-term debt, less current maturities 6,689.3 6,119.3Non-recourse notes payable, less current maturities 2,035.6 2,051.2Other long-term liabilities and deferred revenue 1,911.6 1,726.9Total liabilities $ 17,150.0 $ 16,448.5Equity 7,011.0 6,674.1Total liabilities and equity $ 24,161.0 $ 23,122.6
LADCondensed Consolidated Statements of Cash Flows (Unaudited)(In millions) Six months ended June 30,Cash flows from operating activities: 2025 2024Net income $ 469.4 $ 381.5Adjustments to reconcile net income to net cash provided by operating activities 266.7 253.3Changes in:Inventories (19.7) (544.1)Finance receivables (432.1) (386.9)Floor plan notes payable 26.4 384.4Other operating activities 20.7 55.8Net cash provided by operating activities 331.4 144.0Cash flows from investing activities:Capital expenditures (148.8) (209.7)Cash paid for acquisitions, net of cash acquired (278.6) (1,169.5)Proceeds from sales of stores 104.4 6.9Other investing activities 7.5 (142.8)Net cash used in investing activities (315.5) (1,515.1)Cash flows from financing activities:Net (repayments) borrowings on floor plan notes payable, non-trade (141.2) 444.5Net (repayments) borrowings on non-recourse notes payable (67.4) 320.2Net borrowings on other debt and finance lease liabilities 552.2 604.5Proceeds from issuance of common stock 13.6 13.8Repurchase of common stock (263.3) (217.2)Dividends paid (28.2) (28.2)Other financing activity (79.2) (20.0)Net cash (used in) provided by financing activities (13.5) 1,117.6Effect of exchange rate changes on cash and restricted cash 7.4 (3.1)Change in cash, restricted cash, and cash equivalents 9.8 (256.6)Cash, restricted cash, and cash equivalents at beginning of period 445.8 972.0Cash, restricted cash, and cash equivalents at end of period 455.6 715.4
LADReconciliation of Non-GAAP Cash Flow from Operations (Unaudited)(In millions) Six months ended June 30,Net cash provided by operating activities 2025 2024As reported $ 331.4 $ 144.0Floor plan notes payable, non-trade, net (141.2) 444.5Adjust: finance receivables activity 432.1 386.9Less: Borrowings on floor plan notes payable, non-trade associated with acquired new vehicle inventory (45.6) (22.7)Adjusted $ 576.7 $ 952.7
LADReconciliation of Certain Non-GAAP Financial Measures(Unaudited)(In millions, except for per share data) Three Months Ended June 30, 2025 As reported Net loss on Insurance Acquisition Tax attribute Adjusted disposal of reserves expenses storesSelling, general and administrative $ 1,014.7 $ (7.2) $ (2.4) $ (0.1) $ – $ 1,005.0Operating income 425.3 7.2 2.4 0.1 – 435.0Income before income taxes 352.1 7.2 2.4 0.1 – 361.8Income tax (provision) benefit (93.9) 1.8 (0.6) – (1.3) (94.0)Net income $ 258.2 $ 9.0 $ 1.8 $ 0.1 $ (1.3) $ 267.8Net income attributable to non-controlling interests (2.1) – – – – (2.1)Net income attributable to LAD $ 256.1 $ 9.0 $ 1.8 $ 0.1 $ (1.3) $ 265.7Diluted earnings per share attributable to LAD $ 9.87 $ 0.35 $ 0.07 $ – $ (0.05) $ 10.24Diluted share count 25.9
Three Months Ended June 30, 2024 As reported Insurance Acquisition Tax attribute Adjusted reserves expensesSelling, general and administrative $ 975.2 $ (6.1) $ (1.8) $ – $ 967.3Operating income 393.6 6.1 1.8 – 401.5Income before income taxes 282.8 6.1 1.8 – 290.7Income tax (provision) benefit (66.2) (1.6) 1.3 (7.6) (74.1)Net income $ 216.6 $ 4.5 $ 3.1 $ (7.6) $ 216.6Net income attributable to non-controlling interests $ (1.0) $ – $ – $ – $ (1.0)Net income attributable to redeemable non-controlling interest $ (1.4) $ – $ – $ – $ (1.4)Net income attributable to LAD $ 214.2 $ 4.5 $ 3.1 $ (7.6) $ 214.2Diluted earnings per share attributable to LAD $ 7.87 $ 0.17 $ 0.11 $ (0.28) $ 7.87Diluted share count 27.2
LADReconciliation of Certain Non-GAAP Financial Measures (Unaudited)(In millions, except for per share data) Six Months Ended June 30, 2025 As reported Net gain on Insurance Acquisition Tax attribute Adjusted disposal of reserves expenses storesSelling, general and administrative $ 1,967.4 $ 2.2 $ (2.8) $ (0.3) $ – $ 1,966.5Operating income 831.6 (2.2) 2.8 0.3 – 832.5Income before income taxes 636.7 (2.2) 2.8 0.3 – 637.6Income tax (provision) benefit (167.3) 4.3 (0.7) (0.1) (2.3) (166.1)Net income $ 469.4 $ 2.1 $ 2.1 $ 0.2 $ (2.3) $ 471.5Net income attributable to non-controlling interests (3.8) – – – – (3.8)Net income attributable to LAD $ 465.6 $ 2.1 $ 2.1 $ 0.2 $ (2.3) $ 467.7Diluted earnings per share attributable to LAD $ 17.80 $ 0.08 $ 0.08 $ 0.01 $ (0.09) $ 17.88Diluted share count 26.2
Six Months Ended June 30, 2024 As reported Insurance Acquisition Tax attribute Adjusted reserves expensesSelling, general and administrative $ 1,909.5 $ (6.1) $ (9.5) $ – $ 1,893.9Operating income 735.0 6.1 9.5 – 750.6Income before income taxes 503.3 6.1 9.5 – 518.9Income tax (provision) benefit (121.8) (1.6) (0.3) (7.6) (131.3)Net income $ 381.5 $ 4.5 $ 9.2 $ (7.6) $ 387.6Net income attributable to non-controlling interests (2.5) – – – (2.5)Net income attributable to redeemable non-controlling interest (2.3) – – – (2.3)Net income attributable to LAD $ 376.7 $ 4.5 $ 9.2 $ (7.6) $ 382.8Diluted earnings per share attributable to LAD $ 13.75 $ 0.17 $ 0.33 $ (0.28) $ 13.97Diluted share count 27.4
LADAdjusted EBITDA and Net Debt to Adjusted EBITDA (Unaudited)(In millions) Three months ended June 30, % Six months ended June 30, % Increase Increase 2025 2024 (Decrease) 2025 2024 (Decrease)EBITDA and Adjusted EBITDANet income $ 258.2 $ 216.6 19.2% $ 469.4 $ 381.5 23.0%Flooring interest expense 55.0 76.6 (28.2) 112.0 137.3 (18.4)Other interest expense 66.7 61.2 9.0 132.2 124.8 5.9Financing operations interest expense 49.8 47.0 6.0 97.9 94.8 3.3Income tax expense 93.9 66.2 41.8 167.3 121.8 37.4Depreciation and amortization 65.2 62.3 4.7 129.0 120.0 7.5EBITDA $ 588.8 $ 529.9 11.1% $ 1,107.8 $ 980.2 13.0%Other adjustments:Less: flooring interest expense $ (55.0) $ (76.6) (28.2) $ (112.0) $ (137.3) (18.4)Less: financing operations interest expense (49.8) (47.0) 6.0 (97.9) (94.8) 3.3Less: used vehicle line of credit interest (4.4) (6.0) (26.7) (7.5) (12.1) (38.0)Add: acquisition expenses 0.1 1.8 (94.4) 0.3 9.5 (96.8)Add: loss (gain) on disposal of stores 7.2 – NM (2.2) – NMAdd: insurance reserves 2.4 6.1 NM 2.8 6.1 NMAdjusted EBITDA $ 489.3 $ 408.2 19.9% $ 891.3 $ 751.6 18.6%NM – not meaningful
As of % June 30, IncreaseNet Debt to Adjusted EBITDA 2025 2024 (Decrease)Floor plan notes payable $ 4,888.0 $ 5,287.5 (7.6)%Used and service loaner vehicle inventory financing facility 1,011.3 1,014.8 (0.3)Revolving lines of credit 1,792.1 1,848.5 (3.1)Warehouse facilities 1,241.0 701.0 77.0Non-recourse notes payable 2,042.0 2,025.8 0.84.625% 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 986.4 876.4 12.6Unamortized debt issuance costs (20.6) (28.3) (27.2)Total debt $ 13,690.2 $ 13,475.7 1.6%Less: Floor plan related debt $ (5,899.3) $ (6,302.3) (6.4)%Less: Financing operations related debt (3,283.0) (2,726.8) 20.4Less: Unrestricted cash and cash equivalents (202.8) (516.4) (60.7)Less: Marketable securities (52.1) (51.4) 1.4Less: Availability on used vehicle and service loaner financing facilities (29.9) (30.4) (1.6)Net Debt $ 4,223.1 $ 3,848.4 9.7%TTM Adjusted EBITDA $ 1,698.0 $ 1,601.8 6.0%Net debt to Adjusted EBITDA 2.49 x 2.40 xNM – not meaningful
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SOURCE Lithia Motors, Inc.
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