NYSE$LAD

Lithia Motors Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Lithia Motors' first quarter performance in 2020 was affected by the COVID-19 pandemic, with strong January and February results offset by March declines due to shelter-in-place policies, though the company maintained a strong balance sheet and liquidity.

Lithia Motors reported a revenue of $2.8 billion for Q1 2020. Net income was $46 million, with diluted earnings per share at $1.97. The results were impacted by the COVID-19 pandemic in March, offsetting strong performance in the earlier months of the quarter.

  • Total revenue reached $2.8 billion.
  • Net income was $46 million, a decrease from $56 million in the same period last year.
  • Diluted earnings per share were $1.97, down from $2.42 in Q1 2019.
  • The company ended the quarter with over $550 million in cash and availability on revolving lines of credit.

Headline financials

Total Revenue

$2.8B

Previous: $2.85B-1.6%
EPS (adj)

$2.01

Previous: $2.44-17.6%
New Vehicle Units Sold

35.9K

No prior period
Used Vehicle Retail Units

42.6K

No prior period
New Vehicle Avg Price

$38.3K

No prior period
Used Vehicle Avg Price

$20.5K

No prior period
New Vehicle Avg Gross Profit

$2.18K

No prior period
Used Vehicle Avg Gross Profit

$2.11K

No prior period
F&I Avg Gross Profit

$1.55K

No prior period
Total Vehicle Avg Gross Profit

$3.7K

No prior period
Capital Expenditures

-$41.6M

Previous: -$29.1M-43.0%
Free Cash Flow

$4.6M

Previous: $27.3M-83.2%
Net Income

$46.2M

Previous: $56.4M-18.1%
Operating Income

$92.9M

Previous: $109M-14.5%
Gross Profit

$461M

Previous: $451M+2.3%
Cash & Equivalents

$56.6M

Previous: $45M+25.8%
Total Assets

$6.01B

Previous: $5.69B+5.7%
Stock-Based Comp

$5.1M

Previous: $3.5M+45.7%

Revenue & EPS history

Lithia Motors · Revenue · Quarterly

$2.8B

Q1 2020-1.6%vs Q1 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Lithia Motors · $2.7B total across 4 segments · Q1 2020

  • New Vehicle Retail
    $1.37B
  • Used Vehicle Retail
    $874M
  • Aftersales
    $330M
  • Finance & Insurance
    $122M

Forward guidance

The company is actively managing capital utilization to preserve cash through deferring capital expenditures, suspending share repurchases, and restructuring acquisitions. They are also working with future acquisition partners to restructure transactions to preserve capital and deferring closing until the second half of the year.

Tailwinds

  • Strongest balance sheet in company history.
  • Lowest leverage in the industry.
  • Sufficient liquidity for strategic acquisitions.
  • Ability to weather the period of uncertainty.
  • Diversified network covering 92% of the country.

Headwinds

  • Market conditions are uncertain due to COVID-19.
  • Shelter in place policies are negatively impacting sales.
  • Capital expenditures are being deferred.
  • Share repurchases have been suspended.
  • Acquisition closings are being deferred.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+1.3%

Avg return

Earnings day

+2.3%

Avg return

5 days after

+1.4%

Avg return

30 days after

49%

32 / 65 earnings

Positive

+26.2%

Q2 2020

Best reaction

-11.7%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.1%+1.6%+4.8%
Q4 2025-1.9%-7.7%-22.0%
Q3 2025-1.2%+3.2%-3.0%
Q1 2025-5.8%-1.6%+5.4%
Q4 2024+4.6%+3.0%-19.8%
Q3 2024+10.1%+11.4%+28.3%
Q2 2024+5.0%+1.3%+9.0%
Q1 2024-2.6%-1.2%-3.1%
Q4 2023+2.0%-2.2%-5.5%
Q3 2023-2.5%-2.8%+8.3%
Q2 2023+5.4%+6.2%+3.0%
Q1 2023-2.3%-0.5%-0.1%
Q4 2022-6.5%-4.2%-25.5%
Q3 2022-11.7%-6.7%+9.9%
Q2 2022-8.2%-13.6%-8.9%
Q1 2022-4.7%-5.3%-7.9%
Q4 2021+4.2%+3.4%+7.2%
Q3 2021-0.4%-0.8%-14.0%
Q2 2021+5.6%+4.8%-7.6%
Q1 2021+2.0%+3.3%-4.4%
Q4 2020+6.2%+12.1%+11.3%
Q3 2020-3.8%-7.2%+8.3%
Q2 2020+26.2%+29.6%+49.6%
Q1 2020+11.1%+21.5%+35.2%
Q4 2019-6.6%-6.5%-31.9%
Q3 2019+18.4%+20.6%+23.2%
Q2 2019+15.4%+14.4%+7.4%
Q1 2019+12.7%+16.5%+19.0%
Q4 2018-2.9%+1.9%+1.8%
Q3 2018+18.9%+17.7%+8.0%
Q2 2018-9.6%-7.2%-8.8%
Q1 2018-2.6%-3.7%-1.9%
Q4 2017-5.8%-5.9%-10.0%
Q3 2017-5.9%-3.7%-1.6%
Q2 2017+3.2%-1.1%+3.0%
Q1 2017+11.1%+11.1%+7.7%
Q4 2016-3.3%-1.5%-9.3%
Q3 2016-7.0%-9.2%-8.7%
Q2 2016+3.5%-1.0%-3.3%
Q1 2016-11.2%
Q4 2015+8.1%
Q3 2015+6.5%
Q2 2015+4.0%
Q1 2015+2.4%
Q4 2014+3.2%
Q3 2014+3.9%
Q2 2014+5.3%
Q1 2014+1.9%
Q4 2013+4.0%
Q3 2013-6.3%
Q2 2013+0.0%
Q1 2013+6.6%
Q4 2012-7.1%
Q3 2012-7.3%
Q2 2012+6.9%
Q1 2011-1.1%
Q1 2012+8.5%
Q2 2011-1.5%
Q4 2010-1.5%
Q4 2011-1.5%
Q4 2009-1.5%
Q3 2010-7.4%
Q3 2011-7.4%
Q2 2010-0.2%
Q1 2010+5.1%

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