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Mar 31, 2020
Lithia Motors Q1 2020 Earnings Report
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.
Key Takeaways
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.
Lithia Motors
Lithia Motors
Lithia Motors Revenue by Segment
Revenue by Segment
New Vehicle Retail Revenue
CapyFin.comUsed Vehicle Retail Revenue
CapyFin.comUsed Vehicle Wholesale Revenue
CapyFin.comFinance and Insurance Revenue
CapyFin.comAftersales Revenue
CapyFin.comFleet and Other Revenue
CapyFin.com 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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income