Lithia Motors, Inc. (NYSE:LAD) Q2 2023 Earnings Conference Call July 26, 2023 10:00 AM ET

Company Participants

Amit Marwaha - Director-Investor Relations

Bryan DeBoer - President and Chief Executive Officer

Chris Holzshu - Executive Vice President and Chief Operating Officer

Chuck Lietz - Senior Vice President-Driveway Finance

Tina Miller - Senior Vice President and Chief Financial Officer

Conference Call Participants

Daniel Imbro - Stephens, Inc.

Rajat Gupta - JPMorgan

John Murphy - Bank of America

Colin Langan - Wells Fargo

Ryan Sigdahl - Craig-Hallum Capital Group

Kate McShane - Goldman Sachs

Bret Jordan - Jefferies

Adam Jonas - Morgan Stanley

Ron Josey - Citi

David Whiston - Morningstar

Operator

Good morning. Welcome to Lithia & Driveway's Second Quarter 2023 Conference Call. All lines have been placed on mute to prevent background noise. After the speakers' remarks, there will be a question-and-answer session.

I would now like to turn the call over to Amit Marwaha, Director of Investor Relations. Please begin.

Amit Marwaha

Thank you for joining us for our second quarter earnings call for 2023. With me today are Bryan DeBoer, President and CEO; Chris Holzshu, Executive Vice President and COO; Tina Miller, senior Vice President and CFO; and Chuck Lietz, Senior Vice President of Driveway Finance. 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 from the statements made. We disclose those risks and uncertainties we deem to be material in our filings with the securities and Exchange Commission. We urge you to carefully consider these disclosures and not to place undue reliance on forward-looking statements. We undertake no duty to update any forward-looking statements, which are made as of the date of this release.

Our results discussed today include references to non-GAAP financial measures. Please refer to the text of today's press release for a reconciliation to comparable GAAP measures. We have also posted an update investor presentation on our website, investors.lithiadriveway.com, highlighting our second quarter results.

With that, I would like to turn the call over to Bryan DeBoer, President and CEO.

Bryan DeBoer

Thank you, Amit. Good morning and welcome to our second quarter earnings call. We appreciate everyone joining us today and for the opportunity to update you on our business strategy, growth and progress towards our 2025 plan and beyond. In Q2, Lithia & Driveway grew revenues to $8.1 billion, up 12% from 2022, resulting in adjusted diluted earnings per share of $10.91. Sequentially, GPUs were a little stronger than expected for both new and used vehicles, and F&I margins remained stable. Thus far in 2023, GPUs for new vehicles have come down approximately $100 per month, half of our original expectations. We remain focused on growth and profitability and we look to gain further efficiencies across our businesses.