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Lithia Motors Inc. (LAD) · 31 slides · Filed Oct 23, 2026
Every slide of this earnings presentation, with the text as published. Open the original deck ↗ · All LAD deck slides
Slide 1 — Investor Presentation
N Y S E : L A D JULY 202 Investor Presentation
Slide 2 — Disclosure
N Y S E : L A D 2 N Y S E : L A D Forward - Loking Statements Certain statements in this presentation, and at times made by our oficers and representatives, constitute forward - loking statements within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 195. Genera ly , you can identify forward - loking statements by terms such as "project", "outlok", "target", "may", "wil", "would", "should", " sek", "expect", "plan", "intend", "forecast", "anticipate", "believe", "estimate", "predict", "potential", "likely", "goal", "strat egy ", "future", "maintain", and "continue" or the negative of these terms or other comparable terms. Examples of forward - loking statements in t his presentation include, among others, statements regarding: ° Future market conditions, including anticipated car and other sales levels and the suply of inventory; ° Our business strategy and plans, including our 2025 Plan or (—50/50“ Plan) and any business expansion; ° The growth, expansion, make - up and suces of our network, including our acquiring aditional and acretive stores; ° Anualized revenues from acquired stores; ° The growth and performance of our Driveway e - comerce home solution and Driveway Finance, their synergies and other impacts on our busines and our realizing Driveway and Driveway Finance - related targets; ° The impact of sustainable vehicles and other market and regulatory changes on our busines; ° Our capital alocations and uses and levels of capital expenditures in the future; ° Future expected operating and financial results, such as projections of improved store performance and generation of future revenue or earnings; ° Our anticipated financial condition and liquidity, including from our cash and the future availability on our credit facility , unfinanced real estate and other financing sources; ° Our continuing to purchase shares under our share repurchase program; ° Impacts from the continued COVID - 19 pandemic; ° Our compliance with financial and restrictive covenants in our credit facility and other debt agrements; ° Our programs and initiatives for employe recruitment, training, and retention; and ° Our strategies for customer retention, growth, market position, financial results and risk management. Because forward - loking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are dificult to predict and many of which are outside of our control. Forward - loking statements are not guarantes of future performance, and our actual results of operations, financial condition and liquidity and development of the industry in which we operate may difer materialy from those made in or sugested by the forward - loking statements in this presentation. Therefore, you should not rely on any of these forward - loking statements. The risks and uncertainties that could cause actual results to difer materialy from estimated or projected results include, without limitation: ° Future national and local economic and financial conditions, including as a result of the COVID - 19 pandemic, inflation and governmental programs and spending; ° The market for dealerships, including the availability of stores to us for an aceptable price; ° Changes in customer demand, our relationship with, and the financial and operational stability of, OEMs and other supliers; ° Changes in the completive 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 asociated with our indebtednes, including available borowing capacity, interest rates, compliance with financial covenants and ability to refinance or repay indebtednes on favorable terms; ° The adequacy of o ur cash flows and other conditions which may afect our ability to fund capital expenditures, obtain favorable financing and pay our quarterly dividend at planed levels; ° Disruptions to our technology network including computer systems, as wel as natural events such as severe weather, or man - made or other disruptions of our operating systems, facilities or equipment; ° Government regulations and legislation; and ° The risks set forth throughout "Part 1, Item 7. Management's Discusion and Analysis of Financial Condition and Results of Operations" and in "Part I, Item 1A. Risk Factors" of our most recent Anual 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 - loking statement made by us in this presentation is based only on information curently 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 - loking statement, whether writen or oral, that may be made from time to time, whether as a result of new information, futur e developments or otherwise. Disclosure Non - GAP Financial Measures This presentation contains non - GAP financial measures such as adjusted net income and diluted earnings per share, adjusted SG&A as a percentage of revenue and gros profit, adjusting operating profit as a percentage of revenue and gros profit, adj ust ed pre - tax margin and net profit margin, EBITDA, adjusted EBITDA, leveraged EBITDA and adjusted total debt. Non - GAP measures do not have definitions under GAP and may be defined diferently by and not comparable to similarly titled measures used by other companies. As a result, we review any non - GAP financial measures in conection with a review of the most directly comparable measures calculated in acordance with GAP. We caution you not to place undue reliance on such non - GAP measures, but also to consider them with the most directly comparable GAP measures. We present cash flows from operations in the atached tables, adjusted to include the change in non - trade flor 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 GAP measures in the atachments to this release. We believe the non - GAP financial measures we present improve the transparency of our disclosures; provide a meaningful presentation of our results from core busines operations, because they exclude items not related to core busines operations and other non - cash items; and improve the period - to - period comparability of our results from core busines operations. These presentations should not be considered an alternative to GAP measures.
Slide 3 — Lithia & Driveway
N Y S E : L A D 3 N Y S E : L A D Lithia & Driveway The pragmatic disrupter with a proven multifaceted suces strategy, uniquely and competitively leading the modernization of personal transportation by providing consumers solutions wherever , whenever , and however they desire. Fortune 50 °#158 in 202 °#10 10 - year revenue growth, 23% CAGR* °#16 10 - year Total Shareholder Return, 31% CAGR* °#16 10 - year EPS Growth, 32% CAGR* °Diverse synergistic portfolio of busineses °Complete ownership lifecycle atachment °10% participation in $2 trilion+ market °10% national coverage °Proven expansion execution °Highly profitable with significant cash flows * 10 year CAGRs and TSR through December 31, 2021
Slide 4 — Key Strategic Highlights
N Y S E : L A D 1 2 3 Largest Retail Industry in Early Inings of Consolidation and Modernization Plan Strategy Overview Building a diversified and highly adaptable model to maximize adresable market Growth & Scale Disciplined M&A Generating Strong Returns and Convenient Consumer Acesibility 4 5 Consumer Optionality Oferings for Al Aspects of Vehicle Ownership and the Entire Lifecycle with Omni - Chanel Solutions Adjacencies Transformative, Systematic Expansion Leveraging Strengths Verticaly and Horizontaly Profitably Modernizing an Industry Building a Profitable Platform with Ability to Respond to Changing Consumer and Industry Trends 4 N Y S E : L A D 2025 Plan: $50 bilion in revenues and $5 to $60 in EPS Key Strategic Highlights
Slide 5 — Revenue Industry
N Y S E : L A D 5 N Y S E : L A D Uniquely designed focusing on maximizing gros profit °Diversified with 5+ busines lines °~ $60B oportunity, 2 - 3X greater than competitors °Target 5% new and used vehicle market share Over $2 Trilion Revenue Industry Maximizing a dresable m arket in an unconsolidated industry Used vehicles: Asumes Traditional New Franchise Dealers target 0 - 5 year old used vehicles; Public Used Only Auto Retailers target 0 - 10 year old used vehicles. Aftersales: Asumes Traditional New Franchise Dealer adresable market limited by utilization of only OEM parts and represen ts 50% of the market Source: IHS Markit 2019 US vehicle registrations, Auto Care Asociation PUBLIC USED ONLY AUTO RETAILERS TRADITIONAL NEW FRANCHISE DEALERS $40B $70B $80B Revenue Gros Profit Gros Margin % REVENUE (in bilions) $0 $30 $60 $90 $1,20 $1,50 $1,80 $2,10 $2,40 GROS PROFT (in bilions) $60 $450 $0 $30 $150 $175B 4% $60B 9% $10B 13% $20B $70B $30B Revenue Gros Profit Gros Margin % $10B 50% $60B 9% $50B 17% $50B Revenue Gros Profit Gros Margin % $65B 13% ~$2.4T ~$60B $40B $140B AFTERSALES NEW VEHICLES USED VEHICLES CONSUMER FINANCE FLET MANAGEMENT MOBILITY $20B 5% $45B 32% $20B 5% $40B
Slide 6 — LAD Strategy Overview
N Y S E : L A D 6 N Y S E : L A D LAD Strategy Overview VERTICALS - CONSUMER GROWTH (REV) HORIZONTALS - CONSUMER SYNERGIES (EPS) KEY
Slide 7 — 2025 & Beyond
N Y S E : L A D DIVERSIFIED. DYNAMIC. PROFITABLE. 7 N Y S E : L A D 2025 & Beyond Leveraging our platforms with organic growth and adjacencies 2025 PLAN ° Acquisition of network contributing $20B+ in anualized revenue ° Expansion of Driveway and GrenCars generating $9B+ in revenues ° DFC penetration rate grows to 15% and CECL reserves drag on profitability ° Improved cost leverage towards 60% SG&A as a % of gros profit ° GPUs at pre - pandemic levels ° No aditional equity isuances required ° Continued exploration of adjacencies with structuraly higher margins FUTURE STATE ° Oportunity for $1 bilion of revenue to produce up to $2 of EPS ° DFC becomes major contributor to profitability ° Incorporating technology and omni - chanel solutions to take SG&A as a % of GP below 50% ° Transformative expansion into adjacencies ° Designed to respond to future consumer demand and industry trends 2019 REVENUE $25B EPS $50B $75B $10B 2021 Curent 2025 $12.7B $1.76 $2.8B $40.03 $50B $5 - 60 Future State $75B+ $25 $50 $75 $10 $10+ DRIVEWAY FINANCE DRIVEWAY/GRENCARS CORE FLET MANAGEMENT MOBILITY NEW HORIZONTALS / VERTICALS NETWORK EXPANSION ELEVATED GPUs KEY REV. EPS REV. EPS REV. EPS REV. EPS
Slide 8 — Leveraging Growth & Scale
N Y S E : L A D 8 N Y S E : L A D Leveraging Growth & Scale Anualized revenue run - rate aproaching $30 bilion CONSUMER CONVENIENCE ° Expanding physical fotprint through M&A to reach 95% of US consumers within 10 miles ° Building network of 40 to 50 stores with a domestic, import and luxury franchise in each key market ° Shortening the distance betwen our locations and consumers ° decreases logistics costs ° increases pace of reconditioning and inventory turns ° expands procurement capacity DISCIPLINED M&A STRATEGY ° Decades - long history of high - performing M&A with average ROI over 25 % ° Pricing hurdle rates of 15 - 30% of revenue, 3x - 7x EBITDA, 15% ROI North American presence generates over $2 bilion 1 in EBITDA anualy 1 TM EBITDA as of June 30, 202
Slide 9 — Consumer Optionality
N Y S E : L A D 9 N Y S E : L A D Consumer Optionality Interacting with consumers wherever , whenever and however they desire. Personel Specialist with expertise in vehicles, financing and repair Inventory Top of funel procurement and broadest selection Facilities Reaching 95% of US consumers within 250 miles Technology Enhanced 21% of r etail sales use e - comerce solutions Inovation Activating the national network through proprietary digital solutions Transparency Negotiation - fre pricing and visibility Convenience Create a simple, personalized customer experience driven by data science Vertical Integration Expanding margin by diversifying LAD‘s profitability Data Insights Proprietary credit risk model leveraging vast customer data Education Advocating sustainable personal transportation at any level Marketplace Acelerating a net - zero world with largest selection U.S. CONSUMER TRENDS E - Comerce ° 59% interested in buying car entirely online, today 16% transact through e - comerce Financeability ° Over 80% finance or lease ° Elevated used vehicle pricing means disequity is at an al time low of 35% Afordability ° Nearly 60% of vehicles purchased are older than 9 years ° Average monthly payment aproaching $50 ° Average age of the car parc over 12 years
Slide 10 — Lifecycle
N Y S E : L A D 10 N Y S E : L A D Consumer Lifecycle Design Exploring adjacencies that maximize consumer interaction Data Optionality Capital Engine Adjacencies Highly profitable Lithia chanel provides a platform for future growth Expanding physical network and overlaying adjacencies drives synergies and economies of scale in personel and cost structure Increasing volume of customer interactions drives loyalty, market share growth and increased cash flows EMPOWERMENT Shoping and retail experiences available in - store and online AFORDABILITY Broad Selection of products and services to fit al customer neds CONVENIENCE Single interaction point for al aspects of vehicle ownership 75+ YEARS Of Relationship and Transaction Data 8 MILION Paying Customer Transactions Per Year through 5+ Busines Lines 2.5 MILION+ Vehicles Sold in the Past 10 Years 20X Greater Brand Impresions than Used Only Auto Retailers Consumer Lifecycle Fintech, Flet Management, Subscription Services, Leasing, Customer Insurance, International Expansion & Other Verticals
Slide 11 — Driveway Finance Corporation (DFC)
N Y S E : L A D Driveway Finance Corporation (DFC) Deriving incremental profitability from the core busines, diversifying earnings from busines cycle SIZE OF OPORTUNITY ° DFC loan contributes at least 3x the profitability of a third - party loan ° Penetrating 15 to 20% of retail units sold VALUE PROPOSITION ° Top of funel position drives preferential loan section ° Proprietary credit model leveraging vast customer and transactional data KPIs ° Average loan balance of $30,0, coupon of 8.6%, term of 7 years, los ratio of 2.5%, 1/3 new vehicles and 2/3 used vehicles 202 GUIDANCE ° 9 %+ penetration rate ° 70% used / 30% new mix ° $20 milion DFC net los, excluding impact to F&I revenue DFC INCOME / (LOS) PORTFOLIO SIZE KEY 2021 2025 $9B 4% 15% Future State $17B $4B $8B $12B $16B $20B $20M $40M $60M 2024 2023 202 $0.7B DFC INCOME/ (LOS) $2.2B PORTFOLIO SIZE $6B $4B 9 %+ 12% 12% $80M $1B PENETRATION RATE 1 $(20)M $10M $105M $210M $650M $ - Target penetration rate range
Slide 12 — an Industry
N Y S E : L A D Physical network with the closest proximity to the consumer, driving eficiencies in procurement, reconditioning, and logistics In - store, omni - chanel, and end - to - end e - comerce platforms meting the ful range of consumer preferences 12 N Y S E : L A D Diversified with 5+ synergistic busines lines Design adreses the ful range of consumer afordability ( 0 - 20 year old vehicles, ful credit spectrum) Transportation solutions adresing the ful lifecycle of consumer mobility œ sales, sourcing, service, financing, insurance, flet management Capital engine generating $2 bilion in EBITDA anualy, alocated to maximize shareholder return while staying within 2 - 3x leverage JOIN THE LITHIA & DRIVEWAY FAMILY THE LEADER WITH A PROVEN SUCES STRATEGY Competitive Advantages Profitably Modernizing an Industry LAD is a growth company focused on profitably consolidating the largest retail sector in North America through providing personal transportation solutions wherever , whenever , and however consumers desire
Slide 13 — Inventory, Strategies, History,
N Y S E : L A D Apendix Inventory, Strategies, History, Future, & More 13 N Y S E : L A D
Slide 14 — Used Vehicle
N Y S E : L A D 14 N Y S E : L A D Used Vehicle Marketplace Adresing largest proportion of used vehicle TAM of any retailer CPO 1% CORE 31% VALUE 58% Inventory Scarcity 40M units 1 ° Inventory procurement and reconditioning are critical. Network growth supercharges ability to procure, distributed network alows it turn faster ° LAD retails 0 to 20 - year - old vehicles ° Value autos are highest gros margin %, turns fastest in normalized environment ° 70% of consumers with an average of $5,10 disequity at pre - pandemic values Financial Metrics 2 CPO $ 35,324 125% Core $29,402 92% Value Autos $ 16,568 109% LAD Market Share 3 2010 2015 2020 2025 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 1 TM IHS used vehicle registration data for the period ended December 31, 2021 grouped by vehicle age (CPO 0 - 3 years, Core 4 - 8 years, Value Autos 9+ years) 2 Q2 202 actual results. ROI defined as (GPU / Cost of Sales) x (365 / Days to Turn) 3 2010, 2015 and 2020 calculated as Used vehicle retail units sold divided by asumption of 40 milion used unit sales anualy . 2025 estimated based on sales forecasts Average Seling Price ROI
Slide 15 — 1,870,0
N Y S E : L A D 15 N Y S E : L A D Driveway œClear Pathway Targeting 40,0 SHOP and SEL transactions, $1 bilion in revenue in 202 1,870,0 QTD average monthly unique visitors 896 Average shiping distance in miles 4.4 Average Gogle review score out of 5 stars 4,30 Monthly SHOP and SEL transactions in May 202 SHOP ° Selection of ~40,0 vehicles ° Negotiation - fre pricing, 7 - day money - back guarante, in - home delivery ° Nationwide network of 180+ lenders SEL/TRADE ° Instant cash ofer ° Home pickup ° Imediate payment SERVICE ° Home pickup & drop - of ° Fre loaner vehicles ° 3 - year/50,0 - mile waranty on parts
Slide 16 — Driveway
N Y S E : L A D 16 N Y S E : L A D Driveway œClear Pathway Shoping experience focused on transparency and convenience Fuly proprietary new car shoping experience Integrates aplicable incentives and rebates for transparent upfront pricing Real Time Payment First in market ofering, pays consumers instantly when seling a car to Driveway, no more waiting for the check to clear
Slide 17 — Educating on Sustainability
N Y S E : L A D 17 N Y S E : L A D Educating on Sustainability Leading with education the journey to a sustainable future Buyer‘s Guide GrenCars Score evaluating performance, afordability and environmental impact of electric cars Ownership Resources Personalized EV incentives, charging stations, blog, and educational guides Marketplace powered by Driveway Conveniently shop for over 1,10 new and used sustainable vehicles Learning center Everything you ned to know about electric cars, al in one place.
Slide 18 — Nimbly Responding to Change
N Y S E : L A D 18 N Y S E : L A D Electrification œ Nimbly Responding to Change Suporting the transition to a sustainable future ° Early indications are that BEVs have lower initial repair and maintenance costs than ICE vehicles, however impact of batery replacement is not known at this time ° Longer waranty periods and dealer aces to proprietary diagnostic and repair equipment drives increased retention ° EV adoption wil ocur over time due to size of the car parc and affordability. Driveway‘s - home service ofering wil mitigate impact due through conquest of market share SUSTAINABLE VEHICLE 2 MIX 2015 2021 2030 40% 35% 30% 25% 20% 15% 10% 5% 0% SUSTAINABLE VEHICLES AS % OF NEW UNITS SUSTAINABLE VEHICLES AS % OF SERVICE ROs KEY SUSTAINABLE VEHICLE PIPELINE 1 ° OEMs launching over 20 BEVs in 202, primarily sedans and crosovers in adition to the 15+ curently on sale ° US BEV sales expected to surpas 60,0 in 202 ° MSRP as low as $40,0 before government incentives ° EPA estimated range betwen 20 and 40 miles 1 Car and Driver, (202, January), Every Electric Vehicle that‘s Expected in the Next Five Years, htps:/w.carandriver.com/news/g294375/future - electric - cars - trucks/ GrenCars, (202, January), New Electric Vehicles , htps:/tols.grencars.com/vehicles Reuters, (2021, December), U.S. new car sales to rise in 202 on pent - up demand œEdmunds, htps:/w.reuters.com/markets/europe/us - new - car - sales - rise - 202 - pent - up - demand - edmunds - 2021 - 12 - 16/ 2 Sustainable vehicle defined as Batery Electric, Hybrid Electric, and Plug - in Hybrid vehicles. 2015 and 2021 calculated as BEV, HEV, PHEV retail units sold as a percentage of total retail sales or Service Repair Orders. 2030 estimated based on OEM comentary and internal data regarding average age of vehicles serviced
Slide 19 — LAD‘s History & Path Forward
N Y S E : L A D 202 2025 2020 2021 2030 2035 LAD‘s History & Path Forward Anounces 5 - Year Plan to profitably consolidate the automotive industry Acquires $3.5B in revenues Launches national brand, Driveway, providing proprietary ecomerce digital home solutions nationwide with in - home pickup and delivery and end - to - end buying experience with financing APIs from 29 lenders Acquires $6.9B in revenues and makes first international acquisition Initial Driveway Finance ABS ofering Elevated GPUs provide aditional flexibility on e - comerce and DFC growth trajectory $1 bilion in Driveway revenue and completes aditional Driveway Finance ABS oferings Driveway begins nationwide brand marketing Acquires $2 to 4 bilion in revenues, building network in regions 3 and 6 Advances overlay of horizontals on dealership busines Completes build out of US dealership fotprint Driveway platform targets 30,0 vehicles available for sale, distributed among 6 regions Generating $3 bilion EBITDA anualy, furthers international expansion and begins expansion into new verticals Explores overlay of horizontals on new verticals ~2.5% US market share OEMs expect that 40 to 50% of new vehicles retailed wil be zero - emision, constituting 10% of vehicles in operation 1 Driveway in - home service ofering drives conquest of market share and incremental retention of service customers Verticals and international progresing Progresing towards ~5% US market share LAD continues to evolve as percentage of new vehicles retailed that are zero - emision nears 10% Some manufacturer relationships transition to agency model 5%+ US market share 19 N Y S E : L A D The statements for 202 through 2035 are forward - loking plans, targets and projections based on expectations, goals and asumptions by our management and are subject to a number of risks and uncertainties that could cause actual results to difer materialy. Please se disclosure on slide 2. 1 Reuters, (2021, August), U.S. Automakers to say they aspire up to 50% of EV sales by 2030 - sources, htps:/w.reuters.com/busines/autos - transportation/us - automakers - say - they - aspire - up - 50 - ev - sales - by - 2030 - sources - 2021 - 08 - 04/
Slide 20 — Competitive Advantages
N Y S E : L A D Revenue ($m) 2 $2,832 $13,676 $31,90 $17,423 Net Income (Los) ($m) 2 $1,063 $(435) $1,151 $79 Network Cost ($m) 1, 2 $3,49 $3,141 $3,746 $2,965 As a % of gros profit 2 81.0% 142.1% 13.9% 97.2% Capex as % of gros profit 6.1% 28.9% 9.4% 9.5% People cost ($m) $1,748 $67 $1,326 $1,310 Gros profit / employe $201,371 $91,857 $10,714 $180,073 Net income / employe $50,246 $(13,67) $35,256 $4,265 Reconditioning locations 2 280 71 105 210 % of inventory procured from consumers 73% Not disclosed Not disclosed Not disclosed Pure E - Comerce ofering? None Finance company? None Adreses ful consumer lifecycle? None None Competitive Advantages Lower cost network with higher margin busineses Year Ended 12/31/2021 Year Ended 12/31/2021 Year Ended 2/28/202 Year Ended 12/31/2021 TRADITIONAL NEW FRANCHISE RETAILERS 1 Includes Property and Equipment and ROU asets. Source: Lithia management, company filings and earnings cal transcripts 2 Pro forma amounts including impact of ADESA acquisition per February 24, 202 8 - K/A filing 20 N Y S E : L A D Amounts as of December 31, 2021 except for number of reconditioning locations and % of inventory procured from consumers, which is as of most recent informat io n disclosed
Slide 21 — Capital Deployment
N Y S E : L A D 21 N Y S E : L A D Capital Deployment Flexibly alocating capital to maximize shareholder return INTERNAL INVESTMENT & MODERNIZATION 25% Actual 3 - year average 1 : 34% SHARE REPURCHASES 5% Actual 3 - year average: 8% DIVIDENDS 5% Actual 3 - year average: 5% ACQUISITIONS 65% Actual 3 - year average: 53% Target Uses of Capital Maximizing Shareholder Value ° Balancing capital alocation while staying within 2 - 3x leverage ratio, Investment Grade credit rating wil reduce cost of capital over time ° Curent priorities are M&A and buildout of Driveway and Driveway Finance - se slide 7 for benefits of overlaying those strategies over our physical network ° Continualy re - evaluating alocation based on M&A multiples and stock price ° YTD, we have oportunisticaly repurchased 2.1 m shares at an average price of $ 285, 7.2 % of the float 1 Calculated as percentage of fre cash flows generated
Slide 22 — Valuation Oportunities
N Y S E : L A D Valuation Oportunities Equivalent stock price at average multiples EV/Revenue - $1,70 P/E - $1.0 Undervalued by 3 - 5x 2 N Y S E : L A D 0x 2x 4x LAD AUTO REPAIR USED ONLY RETAIL USED ONLY E - COMERCE AUTO PARTS AUTO FINANCE FLET MANAGEMENT SPECIALTY RETAIL <1x 2x <1x <1x 2x 2x 3x 1x 0x 10x 20x 6x 53x 15x ь 20x 7x 18x 13x 30x TM EV/Revenue œAverage 1.4x TM P/E œAverage 21.3x 40x Source: Company Filings for the most recent 12 months available, stock price data as of June 30, 202
Slide 23 — Q2‘s Income Statement Summary
N Y S E : L A D $6,09 BN $ 7,240 $484 M $ 58 M $1.12 $12.18 Q2‘s Income Statement Summary Q2 2021 Q2 202 KEY TOTAL REVENUES ADJUSTED EBITDA ADJUSTED EPS Q2 202 HIGHLIGHTS 23 N Y S E : L A D COMENTARY ° Increased total revenue and gros profit by 21% and 2%, respectively ° Increased adjusted earnings per share by 10% ° Increased adjusted EBITDA by 13% SAME STORE QUARTER - OVER - QUARTER COMPARISON VS. Q2 2021 REVENUE GROS PROFIT New Vehicle (17)% 4% Used Vehicle Retail 18% (14)% F&I (2)% (2)% Service, Body and Parts 9% 10% TOTAL (1)% (1)%
Slide 24 — Resilient Busines Model
N Y S E : L A D Resilient Busines Model Profitable busines with diversified brand mix, geographic mix and multiple earnings streams NEW VEHICLES USED VEHICLES PARTS & SERVICE 42% 9% 42% 49% 27% 31% Q2 202 Revenue FY 2015 œFY 2019 38% 10% 30% 60% 32% 30% Gros Profit Busines Mix 24 N Y S E : L A D New and Used Gros profit includes F&I Revenue Gros Profit Segment Segment % Brand Brand Revenue Brand Unit Sales Import 41% Toyota 14% 16% Honda 1% 14% Hyundai 6% 8% Subaru 5% 7% KIA 3% 3% Nisan 2% 2% Other Imports 1% 2% Domestic 3% Stelantis 15% 13% Ford 9% 9% GM 7% 6% Luxury 26% BMW/MINI 8% 6% Mercedes 5% 3% Audi 4% 3% Lexus 3% 3% Porsche 2% 1% Acura 2% 2% Jaguar/Land Rover 1% 1% Other Luxury 2% 1% *Other import brands include VW and Mazda *Other luxury brands include Infiniti, Lamborghini, Genesis, Volvo, Rols - Royce, and McLaren *For the thre - months ended June 30, 202. New Vehicle Mix
Slide 25 — Busines
N Y S E : L A D 25 N Y S E : L A D Acquired Busines Earnings Oportunities Acquiring strong brands and grow profits FUTURE STATE PRE - TAX PROFIT MARGIN <1% >3% 2% New Vehicle Market Share Improvement in OEM Market Share Responsibility —MSR“ Used Vehicle Units Significant growth in used units per store per month F&I per Unit Significant increase in GPU Service & Parts Significant Improvement in OEM Customer Service Responsibility —CSR“ 75% 125% 90% 35 Units 80 Units 10 Units $70 $1,20 $1,450+ 10% 25% 20% Achieving performance in 3 to 5 quarters Achieving performance in 3 to 5 years SG&A Reduction Significant Improvement in SG&A as a % of Gros Profit 90% 75% 65% VALUE STORE HIGH - PERFORMING STORE TARGET
Slide 26 — Suplemental Information
N Y S E : L A D 26 N Y S E : L A D Suplemental Information 202 Quarterly Income Statement * Sum of QTD may not equal YTD due to rounding $M Q4 Q3 Q2 Q1 202 New Vehicle $ 3,250.7 $3,061.8 $ 6,312.4 Used Vehicle 2,509.9 2,234.5 4,74.3 Wholesale Used Vehicles 369.2 385.8 75.1 Finance and Insurance 30.4 313.2 643.7 Service Body and Parts 682.6 627.8 1,310.4 Flet and Other 97.3 82.2 179.4 Total Revenues $ 7,240.1 $6,705.3 $ 13,945.4 New Vehicle 410.4 401.3 81.7 Used Vehicle 239.4 23.8 463.1 Wholesale Used Vehicles 2.7 7.7 10.5 Finance and Insurance 30.4 313.2 643.7 Service Body and Parts 363.5 329.0 692.5 Flet and Other 4.3 3.1 7.4 Gros Profit $ 1,350.8 $1,278.1 $ 2,628.9 Aset lmpairments œ œ œ SG&A 781.5 726.1 1,507.6 Depreciation and Amortization 40.9 39.2 80.2 Operating Income $ 528.4 $512.8 $ 1,041.1 Flor Plan Interest Expense (3.8) (4.9) (8.7) Other Interest Expense (34.4) (30.1) (64.5) Other Income (expense), net (21.9) (8.0) (29.9) Income before Taxes $ 468.3 $469.8 $ 938.0 Income Tax Expense ( 130.6) (126.2) ( 256.7) Net Income 37.7 343.6 681.3 Net Income atributable to non - controling interests (6.3 ) (1.4) (7.8) Net Income atributable to LAD $ 31.4 $342.2 $673.5
Slide 27 — Suplemental Information
N Y S E : L A D YTD 6/30/2 Net disposal gain on sale of stores Investment los Acquisition expenses YTD 6/30/2 $M, except for per share amounts As Reported Q2 Q2 Q2 Adjusted Seling, general and administrative $ 1,507.6 13.1 œ (8.1) $ 1,512.9 Operating income 1,041.1 (13.1) œ 8.1 1,036.1 Other income (expense), net (29.9) œ 3.0 œ 3.1 Income before income taxes 938.0 (13.1) œ 8.1 96.0 Income tax (provision) benefit ( 256.7) (9.6) 3.0 ( 2.5) ( 25.7) Net income 681.3 œ 3.0 5.6 710.3 Net income atributable to non - controling interests (7.8) œ œ (0.1) (7.9) Net income atributable to LAD $673.5 $(9.6) $3.0 $ 5.5 $ 702.4 Diluted earnings per share $ 23.15 (0.3) 1.13 0.19 $ 24.14 Diluted share count 29.1 27 N Y S E : L A D Suplemental Information 202 Adjusted non - GAP Income Statement
Slide 28 — Suplemental Information
N Y S E : L A D 28 N Y S E : L A D Suplemental Information 2021 Quarterly Income Statement * Sum of QTD may not equal YTD due to rounding $M Q4 Q3 Q2 Q1 2021 New Vehicle $ 2 , 960 . 0 $ 2 , 898 . 2 $ 3 , 146 . 2 $2,193.2 $1,191.7 Used Vehicle 2 , 018 . 7 2 , 079 . 5 1 , 804 . 9 1,352.2 7,25.3 Wholesale Used Vehicles 343 . 6 260 . 9 217 . 4 135.2 957.1 Finance and Insurance 286 . 3 297 . 0 269 . 6 198.4 1,051.3 Service Body and Parts 607 . 6 578 . 3 521 . 0 404.0 2,10.9 Flet and Other 93 . 3 5 . 8 50 . 3 60.0 259.4 Total Revenues $ 6 , 309 . 5 $ 6 , 169 . 8 $6,09.4 $4,343.0 $2,831.7 New Vehicle 398 . 8 349 . 3 313.7 156.7 1,218.5 Used Vehicle 25 . 4 232 . 6 232.6 136.2 826.7 Wholesale Used Vehicles 16 . 7 5 . 7 16.4 4.6 43.4 Finance and Insurance 286 . 3 297 . 0 269.6 198.4 1,051.3 Service Body and Parts 31 . 5 302 . 5 278.1 218.3 1,10.5 Flet and Other 5 . 1 1 . 9 0.2 1.3 8.6 Gros Profit $ 1 , 243 . 8 $ 1 , 189 . 1 $1,10.6 $715.5 $4,259.0 Aset lmpairments œ 1 . 9 œ œ 1 . 9 SG&A 704 . 3 673 . 3 634.0 450.4 2 , 461 . 9 Depreciation and Amortization 35 . 8 34 . 4 30.3 26.8 127 . 3 Operating Income $ 503 . 7 $ 479 . 5 $46.3 $238.3 $1,67.9 Flor Plan Interest Expense ( 5 . 4 ) ( 3 . 6 ) (6.4) (6.8) (2.3) Other Interest Expense ( 28 . 6 ) ( 28 . 0 ) (28.1) (23.5) (108.2)