Lithia reports highest second quarter net income in company history
Medford, ore.--(business wire)--lithia motors, inc. (nyse: lad) today reported second quarter 2020 revenue of $2.8 billion. second quarter 2020 net income per diluted share was $3.38, a 29% increase from $2.63 per diluted share reported in the second quarter of 2019. adjusted second quarter 2020 net income per diluted share was $3.72, a 26% increase compared to adjusted net income of $2.95 per diluted share in the same period of 2019. second quarter 2020 net income was $78 million, a 26% increase compared to net income of $62 million in the same period of 2019. adjusted second quarter 2020 net income was $86 million, a 23% increase compared to adjusted net income of $69 million for the same period of 2019. as shown in the attached non-gaap reconciliation tables, the 2020 second quarter adjusted results exclude a $0.34 net non-core charge related to an impairment charge, insurance reserves and acquisition expenses, partially offset by a net gain on sale of stores and a beneficial tax attribute. the 2019 second quarter adjusted results exclude a $0.32 net non-core charge due to a net loss on sale of stores, insurance reserves, and acquisition expenses. second quarter-over-quarter operating highlights: same store new vehicle sales decreased 23.5 % same store used vehicle retail sales increased 0.5% same store f&i per unit increased 9.4% to $1,590 same store total gross profit per unit increased 11.4% to $4,030 sg&a as a percentage of gross profit improved 540bps to 64.7% "the strong sequential improvements throughout the quarter, coupled with our stores' responsiveness to the current environment, led us to the highest quarterly adjusted earnings per share in our company's history," said bryan deboer, president and ceo. "this record performance illustrates the massive opportunity that exists within our $2 trillion industry that we are unlocking through continued growth and the activation of our ecommerce digital home solutions." for the first six months of 2020 revenues decreased 8% to $5.6 billion, compared to $6.1 billion in 2019. net income for the first six months of 2020 was $5.32 per diluted share, compared to $5.08 per diluted share in 2019, an increase of 5%. adjusted net income per diluted share for the first six months of 2020 increased 5% to $5.70 from $5.42 in the same period of 2019. corporate development in july, we announced the acquisitions of smolich cjdr and nissan in bend, oregon and ladin subaru in thousand oaks, california. these acquisitions are anticipated to generate $160 million in annualized steady state revenues. for the year, this brings our total anticipated annualized revenue from acquired locations to $320 million and expanded our density in both the southwest and northwest regions. balance sheet update we ended the second quarter with over $750 million in cash and availability on our revolving lines of credit. earlier this month, we closed on a $255 million syndicated real estate revolving line of credit, bringing our current total cash and available credit to over $1 billion. our unfinanced real estate could provide additional liquidity of approximately $250 million. "the acquisition market is robust and we are accelerating the build out of our coast-to-coast network enabling us to serve customers wherever, whenever, and however they desire," said deboer. "our balance sheet is in the strongest position in our company's history and we are well positioned to accelerate our plan to reach 5% national market share." dividend payment our board of directors approved increasing our dividend to $0.31 per share. we expect to pay the dividend on august 28, 2020 to shareholders of record on august 14, 2020. second quarter earnings conference call and updated presentation the second quarter 2020 conference call may be accessed at 10:00 a.m. et today by telephone at 877-407-8029. an updated presentation highlighting the second quarter 2020 results has been added to our investor relations website. to listen live on our website or for replay, visit www.lithiainvestorrelations.com and click on webcasts. about lithia lithia motors, inc. is a leading provider of personal transportation solutions in the united states and is among the fastest growing companies in the fortune 500 (#252-2020). lithia's rapid growth is powered by people, an industry leading coast-to-coast physical network and ecommerce digital home solutions. lithia increases market share and optimizes profitability by focusing on the consumer experience and applying proprietary performance measurement systems fueled by data science. lithia's unique growth model generates significant cash flows, which funds innovations and the expansion of its nationwide network, creating personal transportation solutions wherever, whenever and however consumers desire. sites www.lithia.com www.lithiainvestorrelations.com www.lithiacareers.com lithia motors on facebook http://www.facebook.com/lithiamotors lithia motors on twitter http://twitter.com/lithiamotors forward-looking statements certain statements in this presentation, and at times made by our officers and representatives, constitute forward-looking statements within the meaning of the "safe harbor" provisions of the private securities litigation reform act of 1995. generally, you can identify forward-looking statements by terms such as "project", "outlook", "target", "may", "will", "would", "should", "seek", "expect", "plan", "intend", "forecast", "anticipate", "believe", "estimate", "predict", "potential", "likely", "goal", "strategy", "future", "maintain", and "continue" or the negative of these terms or other comparable terms. examples of forward-looking statements in this presentation include, among others, statements regarding: future market conditions, including anticipated car sales levels; anticipated impacts on consumer demand or governmental restrictions related to the covid-19 pandemic or otherwise; expected level of business interruption due to shelter in place policies or lifting of those restrictions, and when volumes and consumer demand will return; continuation of our sales and services, including in-store appointments and home deliveries; expected growth from our ecommerce home solutions and digital strategies; expected operating results, such as improved store performance; continued improvement of selling, general and administrative expenses ("sg&a") as a percentage of gross profit and all projections; anticipated integration, success and growth of acquired stores; anticipated ability to capture additional market share; anticipated ability to find accretive acquisitions; expected revenues from acquired stores; anticipated synergies, ability to monetize our investment in digital innovation; anticipated additions of dealership locations to our portfolio in the future; anticipated financial condition and liquidity, including from our cash, availability on our credit facility and unfinanced real estate; anticipated use of proceeds from our financings; anticipated allocations, uses and levels of capital expenditures in the future; expectations regarding compliance with financial and restrictive covenants in our credit facility and other debt agreements; and our strategies for customer retention, growth, market position, financial results and risk management. because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. forward-looking statements are not guarantees of future performance, and our actual results of operations, financial condition and liquidity and development of the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements in this presentation. therefore, you should not rely on any of these forward-looking statements. the risks and uncertainties that could cause actual results to differ materially from estimated or projected results include, without limitation: future economic and financial conditions (both nationally and locally), including as a result of the covid-19 pandemic; changes in customer demand, our relationship with, and the financial and operational stability of, vehicle manufacturers and other suppliers; risks associated with our indebtedness (including available borrowing capacity, compliance with financial covenants and ability to refinance or repay indebtedness on favorable terms); the adequacy of our cash flow and earnings and other conditions which may affect our ability to pay our quarterly dividend at the planned level; disruptions to our technology network including computer systems and software, as well as natural events such as severe weather, fires, floods and earthquakes or man-made or other disruptions of our operating systems, structures, facilities or equipment; and government regulations and legislation, and other risks set forth throughout "part ii, item 7. management’s discussion and analysis of financial condition and results of operations" and in "part i, item 1a. risk factors" of our most recent annual report on form 10-k, item 8.01 in our form 8-k filed on april 13, 2020, and from time to time in our other filings with the sec. any forward-looking statement made by us in this presentation is based only on information currently 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-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise. non-gaap financial measures this presentation contains non-gaap financial measures such as adjusted net income and diluted earnings per share, adjusted sg&a as a percentage of revenue and gross profit, adjusted operating margin, adjusted operating profit as a percentage of revenue and gross profit, adjusted pre-tax margin and net profit margin, ebitda, adjusted ebitda, leveraged ebitda and adjusted total debt. non-gaap measures do not have definitions under gaap and may be defined differently by and not comparable to similarly titled measures used by other companies. as a result, we review any non-gaap financial measures in connection with a review of the most directly comparable measures calculated in accordance with gaap. we caution you not to place undue reliance on such non-gaap measures, but also to consider them with the most directly comparable gaap measures. we present cash flows from operations in the attached tables, adjusted to include the change in non-trade floor 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 gaap measures in the attachments to this release. we believe the non-gaap financial measures we present improve the transparency of our disclosures; provide a meaningful presentation of our results from core business operations, because they exclude items not related to core business operations and other non-cash items; and improve the period-to-period comparability of our results from core business operations. these presentations should not be considered an alternative to gaap measures. lithia motors, inc. consolidated statements of operations (unaudited) (in millions except per share data) three months ended june 30, % six months ended june 30, % increase increase 2020 2019 (decrease) 2020 2019 (decrease) revenues: new vehicle retail $ 1,367.8 $ 1,707.4 (19.9 )% $ 2,741.3 $ 3,168.5 (13.5 )% used vehicle retail 922.2 888.3 3.8 1,796.5 1,716.2 4.7 used vehicle wholesale 51.3 81.7 (37.2 ) 118.0 159.1 (25.8 ) finance and insurance 124.9 129.0 (3.2 ) 246.7 246.5 0.1 service, body and parts 275.5 335.5 (17.9 ) 605.4 652.9 (7.3 ) fleet and other 16.9 79.8 (78.8 ) 54.4 128.2 (57.6 ) total revenues 2,758.6 3,221.7 (14.4 )% 5,562.3 6,071.4 (8.4 )% cost of sales: new vehicle retail 1,275.6 1,612.0 (20.9 ) 2,570.9 2,987.2 (13.9 ) used vehicle retail 823.9 795.1 3.6 1,608.3 1,538.4 4.5 used vehicle wholesale 49.2 79.9 (38.4 ) 115.3 156.4 (26.3 ) service, body and parts 131.1 165.2 (20.6 ) 292.8 323.1 (9.4 ) fleet and other 14.4 75.9 (81.0 ) 49.7 122.0 (59.3 ) total cost of sales 2,294.2 2,728.1 (15.9 ) 4,637.0 5,127.1 (9.6 ) gross profit 464.4 493.6 (5.9 )% 925.3 944.3 (2.0 )% asset impairments 7.9 — nm 7.9 0.5 nm sg&a expense 304.5 356.5 (14.6 ) 650.5 678.3 (4.1 ) depreciation and amortization 22.3 20.2 10.4 44.3 40.0 10.8 income from operations 129.7 116.9 10.9 % 222.6 225.5 (1.3 )% floor plan interest expense (8.1 ) (19.4 ) (58.2 ) (22.1 ) (37.5 ) (41.1 ) other interest expense (16.8 ) (15.0 ) 12.0 (33.8 ) (30.3 ) 11.6 other income, net 3.5 3.0 nm 5.8 5.6 nm income before income taxes 108.3 85.5 26.7 % 172.5 163.3 5.6 % income tax expense (30.6 ) (23.6 ) 29.7 (48.6 ) (45.0 ) 8.0 income tax rate 28.3 % 27.6 % 28.2 % 27.6 % net income $ 77.7 $ 61.9 25.5 % $ 123.9 $ 118.3 4.7 % diluted net income per share: net income per share $ 3.38 $ 2.63 28.5 % $ 5.32 $ 5.08 4.7 % diluted shares outstanding 23.0 23.5 (2.1 ) % 23.3 23.3 — % nm - not meaningful lithia motors, inc. key performance metrics (unaudited) three months ended june 30, % six months ended june 30, % increase increase 2020 2019 (decrease) 2020 2019 (decrease) gross margin new vehicle retail 6.7 % 5.6 % 110 bps 6.2 % 5.7 % 50 bps used vehicle retail 10.7 10.5 20 10.5 10.4 10 finance and insurance 100.0 100.0 — 100.0 100.0 — service, body and parts 52.4 50.8 160 51.6 50.5 110 gross profit margin 16.8 15.3 150 16.6 15.6 100 unit sales new vehicle retail 34,869 45,887 (24.0 )% 70,776 85,582 (17.3 )% used vehicle retail 43,505 42,865 1.5 86,136 83,540 3.1 total retail units sold 78,374 88,752 (11.7 ) 156,912 169,122 (7.2 ) average selling price new vehicle retail $ 39,226 $ 37,208 5.4 % $ 38,732 $ 37,023 4.6 % used vehicle retail 21,196 20,724 2.3 20,857 20,543 1.5 average gross profit per unit new vehicle retail $ 2,643 $ 2,078 27.2 % $ 2,407 $ 2,119 13.6 % used vehicle retail 2,259 2,174 3.9 2,185 2,128 2.7 finance and insurance 1,593 1,453 9.6 1,572 1,457 7.9 total vehicle(1) 4,050 3,598 12.6 3,875 3,596 7.8 revenue mix new vehicle retail 49.6 % 53.0 % 49.3 % 52.2 % used vehicle retail 33.4 27.6 32.3 28.3 used vehicle wholesale 1.9 2.5 2.1 2.6 finance and insurance, net 4.5 4.0 4.4 4.1 service, body and parts 10.0 10.4 10.9 10.8 fleet and other 0.6 2.5 1.0 2.0 gross profit mix new vehicle retail 19.8 % 19.3 % 18.4 % 19.2 % used vehicle retail 21.2 18.9 20.3 18.8 used vehicle wholesale 0.5 0.4 0.3 0.3 finance and insurance, net 26.9 26.1 26.7 26.1 service, body and parts 31.0 34.5 33.8 34.9 fleet and other 0.6 0.8 0.5 0.7 adjusted as reported adjusted as reported three months ended june 30, three months ended june 30, six months ended june 30, six months ended june 30, other metrics 2020 2019 2020 2019 2020 2019 2020 2019 sg&a as a % of revenue 10.9 % 10.7 % 11.0 % 11.1 % 11.6 % 11.0 % 11.7 % 11.2 % sg&a as a % of gross profit 64.7 70.1 65.6 72.2 69.7 70.7 70.3 71.8 operating profit as a % of revenue 5.1 3.9 4.7 3.6 4.2 3.9 4.0 3.7 operating profit as a % of gross profit 30.5 25.8 27.9 23.7 25.5 25.0 24.1 23.9 pretax margin 4.4 3.0 3.9 2.7 3.3 2.9 3.1 2.7 net profit margin 3.1 2.2 2.8 1.9 2.4 2.1 2.2 1.9 (1) includes the sales and gross profit related to new, used retail, used wholesale and finance and insurance and unit sales for new and used retail lithia motors, inc. same store operating highlights (unaudited) three months ended june 30, % six months ended june 30, % increase increase 2020 2019 (decrease) 2020 2019 (decrease) revenues new vehicle retail $ 1,277.9 $ 1,670.2 (23.5 )% $ 2,550.9 $ 3,092.8 (17.5 )% used vehicle retail 869.6 865.4 0.5 1,695.6 1,668.5 1.6 finance and insurance 116.9 125.6 (6.9 ) 230.4 240.0 (4.0 ) service, body and parts 259.0 326.4 (20.6 ) 567.2 632.4 (10.3 ) total revenues 2,587.4 3,146.2 (17.8 ) 5,206.4 5,912.7 (11.9 ) gross profit new vehicle retail $ 85.2 $ 93.7 (9.1 ) % $ 157.8 $ 177.6 (11.1 )% used vehicle retail 92.0 91.5 0.5 175.7 174.3 0.8 finance and insurance 116.9 125.6 (6.9 ) 230.4 240.0 (4.0 ) service, body and parts 135.6 166.0 (18.3 ) 292.8 320.2 (8.6 ) total gross profit 434.4 482.4 (10.0 ) 864.3 921.1 (6.2 ) gross margin new vehicle retail 6.7 % 5.6 % 110 bps 6.2 % 5.7 % 50 bps used vehicle retail 10.6 10.6 — 10.4 10.4 — finance and insurance 100.0 100.0 — 100.0 100.0 — service, body and parts 52.4 50.8 160 51.6 50.6 100 gross profit margin 16.8 15.3 150 16.6 15.6 100 unit sales new vehicle retail 32,461 44,700 (27.4 )% 65,341 83,173 (21.4 )% used vehicle retail 41,030 41,676 (1.6 ) 81,094 80,967 0.2 average selling price new vehicle retail $ 39,366 $ 37,364 5.4 % $ 39,039 $ 37,185 5.0 % used vehicle retail 21,194 20,766 2.1 20,910 20,607 1.5 average gross profit per unit new vehicle retail $ 2,625 $ 2,095 25.3 % $ 2,415 $ 2,136 13.1 % used vehicle retail 2,243 2,195 2.2 2,167 2,153 0.7 finance and insurance 1,590 1,454 9.4 1,573 1,462 7.6 total vehicle(1) 4,030 3,618 11.4 3,870 3,622 6.8 (1) includes the sales and gross profit related to new, used retail, used wholesale and finance and insurance and unit sales for new and used retail lithia motors, inc. other highlights (unaudited) financial covenants requirement as of june 30, 2020 current ratio not less than 1.10 to 1 1.37 to 1 fixed charge coverage ratio not less than 1.20 to 1 2.78 to 1 leverage ratio not more than 5.75 to 1 2.60 to 1 lithia motors, inc. condensed consolidated balance sheets (unaudited) (in millions) june 30, 2020 december 31, 2019 cash and cash equivalents $ 120.3 $ 84.0 trade receivables, net 446.4 505.0 inventories, net 1,812.8 2,433.7 other current assets 50.6 47.8 total current assets $ 2,430.1 $ 3,070.5 property and equipment, net 1,663.0 1,611.7 intangibles 947.7 761.3 other non-current assets 498.2 640.4 total assets $ 5,539.0 $ 6,083.9 floor plan notes payable 1,460.6 2,067.6 other current liabilities 565.8 501.5 total current liabilities $ 2,026.4 $ 2,569.1 long-term debt 1,357.9 1,430.6 other long-term liabilities and deferred revenue 622.5 616.5 total liabilities $ 4,006.8 $ 4,616.2 stockholder's equity 1,532.2 1,467.7 total liabilities & stockholders' equity $ 5,539.0 $ 6,083.9 lithia motors, inc. summarized cash flow from operations (unaudited) (in millions) six months ended june 30, 2020 2019 net income $ 123.9 $ 118.3 adjustments to reconcile net income to net cash provided by operating activities: asset impairments 7.9 0.5 depreciation and amortization 44.3 40.0 stock-based compensation 10.0 7.4 gain on disposal of assets (0.3 ) — gain on sale of franchises (1.4 ) 0.3 deferred income taxes (4.9 ) 7.6 (increase) decrease: trade receivables, net 53.8 40.1 inventories 624.7 (63.0 ) other assets (10.6 ) 6.4 increase (decrease): floor plan notes payable, net (130.7 ) 89.7 trade payables 0.3 3.5 accrued liabilities 51.1 (8.8 ) other long-term liabilities and deferred revenue 21.9 2.4 net cash provided by operating activities $ 790.0 $ 244.4 lithia motors, inc. reconciliation of non-gaap cash flow from operations (unaudited) (in millions) six months ended june 30, net cash provided by operating activities 2020 2019 as reported $ 790.0 $ 244.4 floor plan notes payable, non-trade, net (456.8 ) (11.1 ) less: borrowings on floor plan notes payable, non-trade associated with acquired new vehicle inventory (22.3 ) (19.3 ) adjusted $ 310.9 $ 214.0 lithia motors, inc. reconciliation of certain non-gaap financial measures (unaudited) (in millions, except for per share data) three months ended june 30, 2020 as reported disposal gain on sale of stores asset impairment insurance reserves acquisition expenses tax attribute adjusted asset impairments $ 7.9 $ — $ (7.9 ) $ — $ — $ — $ — selling, general and administrative 304.5 1.3 — (5.0 ) (0.5 ) — 300.3 operating income 129.7 (1.3 ) 7.9 5.0 0.5 — 141.8 income before income taxes 108.3 (1.3 ) 7.9 5.0 0.5 — 120.4 income tax (provision) benefit (30.6 ) 0.4 (2.3 ) (1.4 ) (0.2 ) (0.8 ) (34.9 ) net income $ 77.7 $ (0.9 ) $ 5.6 $ 3.6 $ 0.3 $ (0.8 ) $ 85.5 diluted earnings per share $ 3.38 $ (0.04 ) $ 0.24 $ 0.16 $ 0.01 $ (0.03 ) $ 3.72 diluted share count 23.0 three months ended june 30, 2019 as reported disposal loss on sale of stores insurance reserves acquisition expenses adjusted selling, general and administrative $ 356.5 $ (0.4 ) $ (8.4 ) $ (1.5 ) $ 346.2 operating income 116.9 0.4 8.4 1.5 127.2 income before income taxes 85.5 0.4 8.4 1.5 95.8 income tax (provision) benefit (23.6 ) (0.1 ) (2.3 ) (0.4 ) (26.4 ) net income $ 61.9 $ 0.3 $ 6.1 $ 1.1 $ 69.4 diluted earnings per share $ 2.63 $ 0.01 $ 0.26 $ 0.05 $ 2.95 diluted share count 23.5 lithia motors, inc. reconciliation of certain non-gaap financial measures (unaudited) (in millions, except for per share data) six months ended june 30, 2020 as reported disposal gain on sale of stores asset impairment insurance reserves acquisition expenses tax attribute adjusted asset impairments $ 7.9 $ — $ (7.9 ) $ — $ — $ — $ — selling, general and administrative 650.5 1.4 — (5.8 ) (1.0 ) — 645.1 operating income 222.6 (1.4 ) 7.9 5.8 1.0 — 235.9 income before income taxes 172.5 (1.4 ) 7.9 5.8 1.0 — 185.8 income tax (provision) benefit (48.6 ) 0.4 (2.3 ) (1.6 ) (0.3 ) (0.8 ) (53.2 ) net income $ 123.9 $ (1.0 ) $ 5.6 $ 4.2 $ 0.7 $ (0.8 ) $ 132.6 diluted earnings per share $ 5.32 $ (0.04 ) $ 0.24 $ 0.18 $ 0.03 $ (0.03 ) $ 5.70 diluted share count 23.3 six months ended june 30, 2019 as reported disposal loss on sale of stores asset impairment insurance reserves acquisition expenses adjusted asset impairments $ 0.5 $ — $ (0.5 ) $ — $ — $ — selling, general and administrative 678.3 (0.3 ) — (8.4 ) (1.7 ) 667.9 operating income 225.5 0.3 0.5 8.4 1.7 236.4 income before income taxes 163.3 0.3 0.5 8.4 1.7 174.2 income tax (provision) benefit (45.0 ) (0.1 ) (0.1 ) (2.3 ) (0.5 ) (48.0 ) net income $ 118.3 $ 0.2 $ 0.4 $ 6.1 $ 1.2 $ 126.2 diluted earnings per share $ 5.08 $ 0.01 $ 0.02 $ 0.26 $ 0.05 $ 5.42 diluted share count 23.3 lithia motors, inc. adjusted ebitda and net debt to adjusted ebitda (unaudited) (in millions) three months ended june 30, % six months ended june 30, % increase increase 2020 2019 (decrease) 2020 2019 (decrease) ebitda and adjusted ebitda net income $ 77.7 $ 61.9 25.5 % $ 123.9 $ 118.3 4.7 % flooring interest expense 8.1 19.4 (58.2 ) 22.1 37.5 (41.1 ) other interest expense 16.8 15.0 12.0 33.8 30.3 11.6 income tax expense 30.6 23.6 29.7 48.6 45.0 8.0 depreciation and amortization 22.3 20.2 10.4 44.3 40.0 10.8 ebitda $ 155.5 $ 140.1 11.0 % $ 272.7 $ 271.1 0.6 % other adjustments: less: flooring interest expense $ (8.1 ) $ (19.4 ) (58.2 ) $ (22.1 ) $ (37.5 ) (41.1 ) less: used vehicle line of credit interest (0.1 ) (1.1 ) (90.9 ) (0.3 ) (2.7 ) (88.9 ) add: acquisition expenses 0.5 1.5 (66.7 ) 1.0 1.7 (41.2 ) less: gain on divestitures (1.3 ) 0.4 (425.0 ) (1.4 ) 0.3 (566.7 ) add: insurance reserve 5.0 8.4 (40.5 ) 5.8 8.4 (31.0 ) add: asset impairment 7.9 — nm 7.9 0.5 nm adjusted ebitda $ 159.4 $ 129.9 22.7 % $ 263.6 $ 241.8 9.0 % nm - not meaningful as of % june 30, increase net debt to adjusted ebitda 2020 2019 (decrease) floor plan notes payable: non-trade $ 1,168.6 $ 1,709.6 (31.6 )% floor plan notes payable 292.0 414.1 (29.5 ) used and service loaner vehicle inventory financing facility 40.0 320.0 (87.5 ) revolving lines of credit — 104.5 nm real estate mortgages 636.9 596.7 6.7 5.250% senior notes due 2025 300.0 300.0 — 4.625% senior notes due 2027 400.0 — nm other debt 48.0 33.8 42.0 unamortized debt issuance costs (10.4 ) (5.5 ) 89.1 total debt $ 2,875.1 $ 3,473.2 (17.2 )% less: floor plan related debt $ (1,500.6 ) $ (2,443.7 ) (38.6 )% less: cash and cash equivalents (120.3 ) (44.7 ) 169.1 less: availability on used vehicle and service loaner financing facility (281.9 ) (1.9 ) nm net debt $ 972.3 $ 982.9 (1.1 )% ttm adjusted ebitda $ 539.7 $ 482.4 11.9 % net debt to adjusted ebitda 1.80 x 2.04 x (11.8 )%
