Q2 2024 Lithia Motors Inc Earnings Call Transcript
Key Points
- Lithia Motors Inc (LAD) achieved its highest ever quarterly revenue of $9.2 billion, up 14% from Q2 of last year.
- The company reported an adjusted diluted earnings per share of $7.87, a 30% improvement sequentially.
- Financing operations achieved profitability earlier than expected, with income of $7.2 million in the quarter compared to an $18.7 million loss last year.
- The company has made significant progress in cost-saving efforts, achieving the first stage of a 60-day plan aimed at creating $150 million in annualized SG&A cost savings.
- Lithia Motors Inc (LAD) purchased a minority stake in Wheels, a leading fleet management company, which is expected to create transformative synergies between their retail and fleet platforms.
- Total same-store revenues were down 6.4%, and gross profits declined 12.5% due to headwinds from the CDK outage.
- The CDK outage drove after-sales down almost 40% during the 12 days of the outage, impacting overall profitability.
- Adjusted diluted earnings per share decreased by 28% from Q2 of last year, with an estimated $1.10 impact from the CDK outage.
- Total vehicle gross profit per unit was resilient but still down $951 compared to the same period a year ago.
- The company faces challenges from affordability and higher interest rates, with unit sales in the quarter down 3%.
Please stand by for streaming text..
Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Lithia Motors second quarter 2024 earnings conference call. (Operator Instructions) Please note, this conference is being recorded. I will now turn the conference over to your host, John John O'Neill, Senior Director, Investor Relations. Thank you. You may begin.
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Good morning. Thank you for joining us for our second quarter earnings call. With me today are Bryan DeBoer, President and CEO, President, Tina Miller, Senior Vice President and CFO, Jeff Lee, Senior Vice Presidents of Driveway Finance, and finally, Adam Chamberlain, Chief Operating Officer. Today's discussion may include statements about future events, financial projections and expectations about the Company's products, markets and growth.
Such statements are forward-looking and subject to risks and uncertainties that could cause actual results to materially differ
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