Lithia Motors Inc (LAD) 2026 Q1 法說會逐字稿

Greetings, and welcome to Lithia Motors and Driveway first quarter 2026 results conference call. (Operator Instructions)

各位好，歡迎參加 Lithia Motors 與 Driveway 2026 年第一季業績電話會議。(接線員指示)

Please note that this conference is being recorded. I would now like to turn the conference over to Jardon Jaramillo, Senior Director of Finance. Thank you. You may begin.

請注意，本次會議將被錄音。現在我想將會議交給財務資深總監 Jardon Jaramillo。謝謝。您可以開始了。

Good morning. Thank you for joining us for our first quarter earnings call. With me today are Bryan DeBoer, President and CEO; Tina Miller, Senior Vice President and CFO; and Chuck Lietz, Senior Vice President of Driveway Finance Corporation.

早安。感謝各位參加我們的第一季財報電話會議。今天與我一同出席的有總裁暨執行長 Bryan DeBoer；資深副總裁暨財務長 Tina Miller；以及 Driveway Finance Corporation 資深副總裁 Chuck Lietz。

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.

今天的討論可能包含關於未來事件、財務預測，以及對公司產品、市場與成長的預期等陳述。此類陳述屬於前瞻性陳述，並受風險與不確定性影響，可能導致實際結果與所述內容出現重大差異。

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 that are made as of the date of this release.

我們在向美國證券交易委員會提交的文件中，揭露我們認為重要的相關風險與不確定性。我們敦促各位仔細考量這些揭露內容，且不要過度依賴前瞻性陳述。對於截至本新聞稿發布日所作出的任何前瞻性陳述，我們不承擔更新義務。

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

我們今天討論的結果包含對非 GAAP 財務衡量指標的引用。請參閱今日新聞稿正文，以取得與可比 GAAP 指標之調節表。我們也已在網站 investors.lithiadriveway.com 上發布更新版投資人簡報，重點呈現第一季業績。

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

接下來，我想把電話交給總裁暨執行長 Bryan DeBoer。

Thank you, Jardon. Good morning, and welcome to our first quarter earnings call. In the first quarter, we again achieved record revenues, reaching $9.3 billion and adjusted diluted EPS of $7.34 as our leaders demonstrated the power of our differentiated and diversified model and the operational resilience that has defined our business across all cycles. Our teams executed well despite weather challenges and a dynamic macro backdrop, delivering solid revenue growth year-over-year.

謝謝你，Jardon。早安，歡迎參加我們的第一季財報電話會議。第一季我們再次創下營收新高，達到 93 億美元，調整後稀釋每股盈餘（EPS）為 7.34 美元；我們的領導團隊展現了差異化且多元化商業模式的力量，以及在各種景氣循環中一貫定義我們業務的營運韌性。儘管面臨天候挑戰與多變的總體環境，我們團隊仍執行到位，帶來穩健的年增營收成長。

We also generated high-quality earnings as our aftersales business continued its steady climb. Used vehicle revenue grew nicely on a same-store basis, and Driveway Finance Corporation delivered another quarter of record originations. These results reflect the differentiated power of our ecosystem. When one part of the business faces a little bit of pressure, our omnichannel platform creates opportunities that sustain earnings and cash flow generation.

我們也創造了高品質的獲利，因為售後服務業務持續穩步攀升。二手車營收在同店基礎上表現亮眼，而 Driveway Finance Corporation 也再度繳出創紀錄的放款承作量。這些成果反映了我們生態系的差異化優勢。當業務的某一部分面臨些許壓力時，我們的全通路平台會創造機會，支撐獲利與現金流的產生。

Across our network, our store teams and department leaders are leaning into what they do best, winning customers, growing share and finding new ways to drive profitability through volume, pricing discipline and cost efficiency. Every incremental customer we bring into our ecosystem multiplies the opportunity ahead of us. Creating more DFC originations, stronger aftersales retention and a deeper waterfall of future used vehicle trade-ins.

在我們的網路中，各門市團隊與部門主管正專注於他們最擅長的事：贏得客戶、擴大市占，並透過銷量、定價紀律與成本效率，尋找推動獲利的新方法。我們每多帶進一位客戶進入生態系，就會放大我們未來的機會。包括帶來更多 DFC 放款承作、更強的售後留存，以及更深的未來二手車換購（trade-in）來源瀑布。

During the quarter, our same-store revenues were down 1.7% and total gross profit was down 2.3%, reflecting resilient results against a very difficult year-over-year comparison to the strong first quarter of 2025. Total vehicle GPU was $3,928, essentially flat sequentially from $3,946 in the fourth quarter, a positive signal heading into the seasonally stronger months ahead.

本季同店營收下滑 1.7%，總毛利下滑 2.3%，反映在與 2025 年第一季強勁表現相比之下，仍展現韌性，因為去年同期比較基期非常艱難。整體車輛單位毛利（GPU）為 3,928 美元，與第四季的 3,946 美元相比，環比基本持平；在進入季節性更強的月份前，這是一個正向訊號。

Our diversified earnings mix continued to provide balance as used vehicle revenues grew 4.6% on a same-store basis, Aftersales growth grew 5.7% and F&I per unit held steady at $1,813. Note that all vehicle operations results will be on a same-store basis from this point forward as well. New vehicle revenue declined 7.1% on a 7.1% decline in units, which reflected the challenging comparison to the first quarter of 2025, due to tariff avoidance pulled forward last March.

我們多元化的獲利組合持續提供平衡：二手車營收同店成長 4.6%，售後服務成長 5.7%，而每單位 F&I（金融與保險）收入維持在 1,813 美元。請注意，從現在起，所有車輛營運結果也都將以同店基礎呈現。新車營收下滑 7.1%，銷量亦下滑 7.1%，主要反映與 2025 年第一季的艱難比較；當時因為規避關稅而在去年 3 月提前拉貨。

New vehicle GPU was $2,722 or down $227 year-over-year, but down only modestly from $2,766 in the fourth quarter. Luxury brand revenue was down 10.2%, domestic down 8.7% and imports down 5.4% year-over-year. We continue to see these conditions as cyclical, and our teams are focused on operational discipline as the market stabilizes.

新車 GPU 為 2,722 美元，年減 227 美元，但相較第四季的 2,766 美元僅小幅下滑。豪華品牌營收年減 10.2%，國產品牌年減 8.7%，進口品牌年減 5.4%。我們仍將這些狀況視為景氣循環的一部分，團隊正專注於營運紀律，因應市場逐步穩定。

Our used retail performance continued its industry-leading trajectory with used revenue up 4.6% and unit growth up 0.6%. Used GPU was $1,680, down $115 year-over-year, but up meaningfully on a sequential basis from $1,575 in the fourth quarter. This reflects the early results of our efforts around more dynamic used vehicle pricing and finding higher demand vehicles.

我們的二手零售表現持續維持業界領先的軌跡，二手營收成長 4.6%，銷量成長 0.6%。二手 GPU 為 1,680 美元，年減 115 美元，但相較第四季的 1,575 美元，環比顯著提升。這反映我們在更動態的二手車定價，以及尋找需求更高車款方面努力的初步成果。

Our focus on this high ROI area provides a stable anchor to offset new vehicle cycles and bring more customers into our ecosystem, leading to growth in our F&I aftersales and DFC business lines over time. F&I per retail unit was $1,813, essentially flat year-over-year with solid underlying product attachment and pricing.

我們聚焦於這個高投資報酬（ROI）領域，提供穩定的支撐，以抵消新車景氣循環，並將更多客戶帶入我們的生態系，進而隨時間推動 F&I、售後服務與 DFC 等業務線的成長。每零售單位的 F&I 收入為 1,813 美元，年比基本持平，產品附加率與定價表現穩健。

As we have shared previously, record DFC penetration in the quarter intentionally shifted a portion of our finance gross profit from F&I to our captive finance platform where it generates reoccurring higher quality and countercyclical earnings over the life of the loan. Adjusting for mix shift, our F&I performance was up nicely and continued to build momentum.

如同我們先前分享的，本季 DFC 滲透率創新高，我們有意將部分原本在 F&I 的融資毛利，轉移至自有融資平台；該平台可在貸款存續期間產生可重複、品質更高且具逆景氣循環特性的獲利。若調整產品組合移轉的影響，我們的 F&I 表現明顯提升，並持續累積動能。

Inventory levels improved during the quarter, the new vehicle day supply at 49 days, down from 54 days at the end of the fourth quarter and used inventory was at 47 days compared to 48 days last quarter. Aftersales continues to be highlighted with revenues up 3.8%, gross profit up 5.7%, and we saw margins expand again year-over-year to 58.7%

本季庫存水位改善，新車庫存天數為 49 天，較第四季末的 54 天下降；二手車庫存為 47 天，較上季的 48 天略降。售後服務仍是亮點：營收成長 3.8%，毛利成長 5.7%，且毛利率年增再度擴張至 58.7%。

Growth was consistent across key categories with customer pay gross profit up 6.5% and warranty gross profit up 5%. This stable broad-based growth demonstrates the underlying strength of our aftersales business and its ability to generate predictable high-margin earnings through every part of the cycle.

主要類別的成長一致：客戶自費（customer pay）毛利成長 6.5%，保固毛利成長 5%。這種穩定且廣泛的成長，展現我們售後服務業務的基本面強勁，並能在景氣循環的各個階段，產生可預期的高毛利獲利。

Adjusted SG&A as a percentage of gross was 71.5%. And while we historically see this metric increase in the first quarter, this year, we held essentially flat sequentially, a sign that the cost discipline is gaining traction. Our sales departments are responding to the challenge we set for them, finding ways to operate more efficiently while continuing to grow volume and serve our customers.

調整後 SG&A（銷售、一般及行政費用）占毛利比為 71.5%。雖然我們歷來在第一季會看到此指標上升，但今年我們環比基本持平，顯示成本紀律正逐步見效。我們的銷售部門正回應我們提出的挑戰，在持續提升銷量並服務客戶的同時，尋找更有效率的營運方式。

The structural improvements we are making across our network from technology investments to vendor consolidation to back-office automation will continue to build on a foundation for a stronger future. In the UK, our teams delivered strong results with gross profit up 12.5% and SG&A as a percentage of gross profit improving 440 basis points year-over-year.

我們在整個網路推動的結構性改善——從科技投資、供應商整併到後勤自動化——將持續在更強健的未來基礎上加以深化。在英國，我們團隊交出強勁成果：毛利成長 12.5%，且 SG&A 占毛利比年比改善 440 個基點。

Adjusted pretax income for the quarter grew 78%, building on the momentum we saw in 2025 as we continue to optimize our international platforms. Our digital platforms also continue to increase our reach and enhance our customer experiences, making shopping, financing and service simpler and faster.

本季調整後稅前所得成長 78%，延續我們在 2025 年看到的動能，因為我們持續優化國際平台。我們的數位平台也持續擴大觸及並提升客戶體驗，使購車、融資與維修保養更簡單、更快速。

Our partnership with Pinewood AI continues to support our strategic vision to transform the customer experience, and we are jointly working to bring the Pinewood AI platform to all of the North American stores. Pinewood AI will reduce complexity and place team members in the same platform as our customers, increasing retention, supporting operational efficiency and reinforcing the power of our integrated ecosystem.

我們與 Pinewood AI 的合作持續支持我們轉型客戶體驗的策略願景，我們正共同推動將 Pinewood AI 平台導入所有北美門市。Pinewood AI 將降低複雜度，讓團隊成員與客戶使用同一平台，提升留存、支持營運效率，並強化我們整合式生態系的力量。

Driveway Finance Corporation continued to scale profitably with financing operation income of $21 million for the quarter, up 71% year-over-year, driven by record originations and improving loss provisions. With a steadily growing portfolio now at $5 billion, increasingly efficient securitizations and clear runway for penetration growth towards our long-term 20-plus target, DFC is delivering on its promise to convert more of our vehicle sales into reoccurring countercyclical income.

Driveway Finance Corporation 本季持續以獲利方式擴張，融資營運收入達 2,100 萬美元，年增 71%，主要受創紀錄的承作量以及損失準備提列改善所帶動。隨著投資組合穩健成長至 50 億美元，證券化效率持續提升，且朝向我們長期 20% 以上的滲透率目標仍有明確成長空間，DFC 正兌現其承諾，將更多車輛銷售轉化為可重複、具逆景氣循環特性的收入。

Now turning to capital allocation. Our philosophy remains very consistent, deploy capital where it generates the highest returns for shareholders. With our shares continuing to trade at a significant discount to our intrinsic value, we maintained our aggressive repurchase pace, retiring approximately 4% of our outstanding shares in the quarter with total repurchases of $259 million.

接著談資本配置。我們的理念始終一致：將資本投入能為股東創造最高報酬之處。由於我們的股價仍以顯著折價交易於內在價值之下，我們維持積極的回購步調，本季以 2.59 億美元回購，註銷約 4% 的流通在外股份。

Our strong cash generation and integrated ecosystem positions us to continue returning meaningful capital to shareholders while simultaneously growing through acquisitions when it makes sense. In the first quarter, we were disciplined and strategic in our acquisition activity, adding import and luxury franchises in attractive US markets while continuing to diversify our UK portfolio with the addition of emerging Chinese OEM brands.

我們強勁的現金創造能力與整合式生態系，使我們得以在持續回饋股東可觀資本的同時，也能在合適時機透過併購推動成長。第一季我們在併購活動上保持紀律與策略性，在美國具吸引力的市場新增進口與豪華品牌經銷權，同時透過引進新興中國 OEM 品牌，持續分散我們在英國的投資組合。

This helps us establish broader relationships to capture growth as these manufacturers expand their presence internationally. Our acquisition results over the past decade have yielded high rates of return, consistently exceeding our 15% after-tax hurdle rates through consistent and disciplined underwriting, targeting purchase prices at 15% to 30% of revenue or 3 to 6 times normalized EBITDA.

這有助於我們建立更廣泛的合作關係，以在這些製造商於國際間擴張布局時掌握成長。過去十年我們的併購成果帶來高報酬率；透過一貫且嚴謹的承作審核，我們的投資報酬持續高於稅後 15% 的門檻報酬率，並將收購價格鎖定在營收的 15% 至 30%，或常態化 EBITDA 的 3 至 6 倍。

As we look ahead, we also stay disciplined in balancing repurchases, acquisitions, organic investments and balance sheet strength with a continued bias towards repurchasing while our shares are trading at a discount. Our confidence in the path ahead is grounded in the same strategic pillars that have driven our growth as follows: lifting store-level productivity, expanding our footprint and digital reach, scaling DFC penetration, improving cost efficiencies through scale and growing contributions from our omnichannel adjacencies.

展望未來，我們也將持續以紀律在回購、併購、有機投資與資產負債表強度之間取得平衡；在股價折價交易期間，我們仍將偏重回購。我們對前景的信心，奠基於推動成長的相同策略支柱，包括：提升門市層級生產力、擴大據點與數位觸及、提高 DFC 滲透率、透過規模提升成本效率，以及提升全通路相鄰業務的貢獻。

Each of these levers builds momentum and as they compound together, they reinforce our conviction in the long-term target of $2 of EPS for $1 billion of revenue. The work our teams are doing today lays the groundwork for durable EPS and cash flow growth in the quarters and years ahead.

上述每一項槓桿都能累積動能，當它們共同複利作用時，將強化我們對長期目標的信念：每 10 億美元營收對應 2 美元 EPS。團隊今日所做的工作，正為未來數季與數年奠定可持續的 EPS 與現金流成長基礎。

With that, I'll turn the call over to Tina.

接下來我把電話交給 Tina。

Thank you, Bryan. Our first quarter results showed sequential improvement in earnings with year-over-year comparisons reflecting pressure from margin compression and demand pull forward in the prior year. The strength of our business model continued to generate solid free cash flow, support meaningful share repurchases, enable top line growth while maintaining balance -- the design of our business and our disciplined approach provides optionality through our resilient cash engine and the long-run efficiency generated by our size and scale will continue to compound value over time.

謝謝你，Bryan。我們第一季的業績顯示獲利較前一季改善；而年對年比較則反映前一年因毛利率壓縮與需求提前釋放所帶來的壓力。我們商業模式的優勢持續帶來穩健的自由現金流，支持具規模的股票回購，並在維持財務平衡的同時推動營收成長——我們的業務設計與紀律化作法，透過具韌性的現金引擎提供選擇權，而由規模與體量所帶來的長期效率將隨時間持續複利創造價值。

Our talented leaders drive the financial discipline and execution that allow us to return capital to shareholders while funding our growth. Adjusted SG&A as a percentage of gross profit was 71.5% for the quarter compared to 68.2% a year ago. While year-over-year pressure reflects the impact of lower new vehicle volumes and normalizing GPUs on our sales departments, we held essentially flat sequentially.

我們優秀的領導團隊推動財務紀律與執行力，使我們能在資助成長的同時回饋股東資本。本季調整後 SG&A 佔毛利比為 71.5%，高於去年同期的 68.2%。年對年壓力主要反映新車銷量較低與銷售部門 GPU（單車毛利）回歸常態的影響，但就季對季而言我們基本持平。

Our teams continue to focus on managing costs through growing market share and gross profit, which remains our most durable levers for SG&A improvement over time. Our sales departments are actively rebalancing cost structures against current volumes and gross profit conditions, tightening variable compensation, aligning staffing to drive throughput, finding new ways to operate and protecting productivity while continuing to provide exceptional customer experiences.

我們的團隊持續聚焦於透過提升市占與毛利來管理成本，這仍是我們隨時間改善 SG&A 最具持久性的槓桿。我們的銷售部門正積極依據目前的銷量與毛利狀況重新平衡成本結構，收緊變動薪酬、調整人力配置以提升產能周轉、尋找新的營運方式並保護生產力，同時持續提供卓越的客戶體驗。

We're making steady progress on a set of structural initiatives that will compound across the business, lifting store and back-office productivity through performance management and emerging AI tools, including chatbots and customer service automation, consolidating our technology footprint and retiring legacy systems, improving our vendor economics at scale and removing manual work from our back office through automation.

我們在一系列結構性計畫上持續穩步推進，這些計畫將在全公司範圍內產生複利效應：透過績效管理與新興 AI 工具（包括聊天機器人與客服自動化）提升門市與後台生產力、整併技術版圖並汰換舊有系統、以規模改善供應商經濟效益，以及透過自動化移除後台的人工工作。

We're already seeing early savings flow through our results and the contribution is expected to build as adoption broadens. Pinewood AI remains an important piece of this work, and we're pacing the rollout with intention so that the efficiency gains we capture are durable. Ultimately, growing market share and volume is our most powerful lever for SG&A improvement.

我們已看到初步節省開始反映在業績中，且隨著採用範圍擴大，預期貢獻將持續提升。Pinewood AI 仍是這項工作的關鍵一環，我們將有意識地掌握推廣節奏，以確保所取得的效率提升具有可持續性。最終而言，提升市占與銷量是我們改善 SG&A 最強而有力的槓桿。

Combined with our unique ecosystem, every incremental customer compounds profitability across our adjacencies. And as vehicle margins stabilize, that volume flows through to meaningful operating leverage.

結合我們獨特的生態系，每增加一位客戶都會在我們的相鄰業務中複利提升獲利能力。而當車輛毛利率趨於穩定時，這些銷量將轉化為顯著的營運槓桿。

Moving on to financing operations. Driveway Finance Corp. delivered another quarter of high-quality growth with financing operations income growing 71%, as Bryan mentioned. We originated a record $840 million of loans and increased net interest margin to 4.8%, up 20 basis points. North American penetration reached 18% for the quarter, also another record.

接著談融資營運。如 Bryan 所提，Driveway Finance Corp. 再度交出高品質成長的一季，融資營運收入成長 71%。我們創下 8.40 億美元貸款承作量的新高，淨利差提升至 4.8%，增加 20 個基點。北美滲透率本季達到 18%，同樣再創新高。

Credit performance continues to be exceptional with an annualized provision rate of 3%, and average origination FICO score of 750 and 95% LTV in the first quarter. Our unique position at the top of the demand funnel creates a fundamental advantage in credit selection, minimizing credit risk.

信用表現持續非常出色，年化提列率為 3%；第一季平均承作 FICO 分數為 750，LTV 為 95%。我們位於需求漏斗頂端的獨特位置，在信用篩選上形成根本性優勢，有助於將信用風險降至最低。

This quarter, our portfolio reached $5 billion, powered by record originations and increasingly efficient securitizations. As we continue to build toward our 20%-plus penetration target, we anticipate steadily improving margins supported by efficient capital structures. DFC is delivering on its potential and powering the profitability of our unique ecosystem.

本季我們的投資組合達到 50 億美元，主要由創紀錄的承作量與日益高效的證券化所驅動。隨著我們持續朝 20% 以上的滲透率目標邁進，我們預期在高效率資本結構的支持下，利潤率將穩步改善。DFC 正發揮其潛力，並推動我們獨特生態系的獲利能力。

Next, I'll discuss the strength of our cash flow and balance sheet. We reported adjusted EBITDA of $374.6 million in the first quarter, a 9% decrease year-over-year, primarily driven by lower net income. Adjusted cash flow from operations, a representation of free cash flow was $381 million for the quarter after adjusting for a onetime $1.1 billion benefit related to our conversion to a VIN-specific used vehicle floor plan line.

接下來我將說明我們現金流與資產負債表的強勁表現。第一季我們的調整後 EBITDA 為 3.746 億美元，年減 9%，主要由淨利下降所致。本季調整後營運現金流（自由現金流的代表）為 3.81 億美元；此數字已剔除一筆一次性 11 億美元的利益，該利益與我們轉換為 VIN 特定的二手車地板融資額度（floor plan line）相關。

This cash flow paired with our strong balance sheet allowed us to opportunistically deploy capital to share repurchases while completing strategic acquisitions of new stores in key markets and brands. We remain committed to share repurchases and our regenerative cash engine positions us to continue flexible deployment of capital to maximize shareholder returns.

這些現金流搭配我們強健的資產負債表，使我們得以把握時機將資本投入股票回購，同時完成在關鍵市場與品牌新增門市的策略性併購。我們仍致力於股票回購，而我們可再生的現金引擎使我們能持續彈性配置資本，以最大化股東報酬。

This quarter, we continued our commitment to focus on share buybacks while shares trade significantly below intrinsic value, and we allocated nearly $300 million to share repurchases, buying back 4% of outstanding shares at an average price of $275. As we move through 2026, our capital allocation philosophy remains disciplined and opportunistic.

本季在股價顯著低於內在價值期間，我們持續聚焦股票回購，並投入近 3 億美元回購，以平均每股 275 美元的價格買回 4% 的流通在外股份。展望 2026 年，我們的資本配置理念仍將保持紀律並把握機會。

With a strong balance sheet, regenerative free cash flows and ample liquidity available, we will continue allocating capital to repurchases while relative valuations are attractive and investing in accretive acquisitions at the right price. This flexible deployment allows us to compound returns for shareholders through buybacks while enhancing our network through strategic acquisitions that strengthen our competitive position and diversify our brand portfolio.

憑藉強健的資產負債表、可再生的自由現金流與充足的流動性，我們將在相對估值具吸引力時持續配置資本於回購，並在價格合適時投資於具增益性的併購。這種彈性配置使我們能透過回購為股東複利累積報酬，同時藉由強化競爭地位並分散品牌組合的策略性併購，提升我們的網絡價值。

The investments we have made over the past five years in our platform, our network and our people are now positioned to deliver increasing returns. As vehicle margins stabilize and our structural cost initiatives gain traction, the earnings leverage inherent in our model will increasingly flow to the bottom line.

過去五年我們在平台、網絡與人才上的投資，如今已具備帶來更高報酬的條件。隨著車輛毛利率趨於穩定、結構性成本計畫逐步見效，我們模式中固有的獲利槓桿將愈來愈多反映在最終盈餘上。

Our diversified omnichannel platform and disciplined share repurchases at attractive valuations are compounding together to build a stronger, more predictable earnings base that translates into durable free cash flow growth and long-term value creation for shareholders. This concludes our prepared remarks.

我們多元化的全通路平台，以及在具吸引力估值下進行的紀律性股票回購，正共同複利打造更強健、可預測的獲利基礎，進而轉化為可持續的自由現金流成長與長期股東價值創造。以上為我們的預先準備發言。

With that, I'll turn the call over to the operator for questions. Operator?

那麼，我把電話交給接線員來進行提問。接線員？

(Operator Instructions)

(接線員指示)

Michael Ward, Citi Research.

Michael Ward，花旗研究。

Thank you very much. Good morning, everyone.

非常感謝。各位早安。

Good morning, Mike.

早安，Mike。

I wonder, Bryan, in the past, you were talk about how some of your acquired stores, the SG&A costs were higher on a relative basis to the more mature stores. Do you have any update on where that is? And then the reason why I ask is, if I'm doing the math right, every 100 basis points improvement in SG&A is about $2 a share.

Bryan，我想請教一下，過去你曾談到你們收購的一些門市，相較於較成熟的門市，其SG&A成本在相對基礎上更高。這方面目前有沒有任何更新？我之所以這麼問，是因為如果我算得沒錯，SG&A每改善100個基點，大約相當於每股增加2美元。

And it seems to me that we have 5, 6, 7 points of improvement that could get there, getting the acquired stores in line with historical and then also what Tina was talking about with Pinewood and some of the benefits you have. Am I on the right track? Is that the way you're looking at it?

而在我看來，若要達到那個水準，可能還有5、6、7個百分點的改善空間：一方面是讓收購門市回到歷史水準，另一方面也包括Tina提到的Pinewood以及你們能取得的一些效益。我的方向對嗎？你們也是這樣看待的嗎？

You are, Mike. This is Bryan. I think in that calculation, I think it's about $31 million, $32 million per dollar. So we are getting some pretty good traction on cost management, a little different than last quarter, which is quite nice. It took us a little while to get everyone's attention, but our sales departments are starting to understand a little better that there's -- that they need to reinvent themselves in terms of what the org design is in those departments where we've got four layers in many of those departments, and we think we can run with two.

是的，Mike。我是Bryan。我認為在那個計算裡，大概是每1美元約3,100萬到3,200萬美元。所以我們在成本管理上取得了相當不錯的進展，跟上季有點不同，這點很不錯。我們花了一點時間才讓大家提高重視，但我們的銷售部門開始更清楚地理解——他們需要在部門的組織設計上重新塑造自己；在許多部門我們有四層管理，我們認為兩層就能運作。

And I think a lot of our sales leaders are trying to figure out how to do that and combine jobs or oversee multiple departments or do things remotely. There's all kinds of fun actions that are happening. And I think that overlays the idea of acquired stores. I mean we have added over $27 billion in revenues over the last six years. So there's a lot of opportunity of people that maybe have never sold value auto cars in the past. They've never really thought about doing more with less, and now they're really starting to hit their stride.

我想很多銷售主管正在思考要怎麼做到這點，像是合併職務、同時管理多個部門，或是遠端處理一些工作。各種有趣的行動都在發生。而我認為這也疊加在收購門市的議題上。我的意思是，過去六年我們新增了超過270億美元的營收。因此有很大的機會：有些人可能過去從未賣過Value Auto（二手平價車）這類車款。他們也從未真正思考過如何以更少資源做更多事，而現在他們真的開始進入狀況。

And Tina, you mentioned the rollout of some of the Pinewood technology. Do you have any -- can you give any data points on like what you're looking at from a timing standpoint on when it could be across all stores? In addition, when that's completed, does it make that integration faster when you make acquisitions?

Tina，你提到正在推廣一些Pinewood技術。你能否提供一些數據點，例如從時程角度來看，何時可能覆蓋到所有門市？另外，當這完成後，是否能讓你們在進行收購時整合得更快？

Yes, Mike, that's a great question. This is Tina. From Pinewood, I think right now, what we're tracking toward is piloting a couple of the stores on that DMS system here in the US later this year. So it would be towards the end of this year is what that pilot is looking toward, making great progress on that with the Pinewood team and the technology, which we see it as an easier experience for our employees, puts customers in a similar just streamlined experience for -- with that technology there. We also are piloting and trying some of the AI technology that Pinewood has, both in the US and the UK.

是的，Mike，這是個很好的問題。我是Tina。就Pinewood而言，我想我們目前追蹤的進度是：今年稍晚在美國先以幾家門市試點導入那套DMS系統。所以試點大概會在今年年底前後；我們與Pinewood團隊及其技術合作進展非常順利。我們認為這能讓員工使用起來更容易，也能讓客戶在該技術支援下獲得類似、更加精簡流暢的體驗。我們也在美國與英國試點並嘗試Pinewood的一些AI技術。

So I think good progress there. In the UK, obviously, with Pinewood as their DMS system, there's good strong progress as they work through that, and we're piloting here in the US as well. So excited to see that great partnership with the Pinewood team as we continue to iterate through how that can make our processes simpler and faster and better experiences for the customers and employees.

所以我認為這方面進展良好。在英國，顯然Pinewood就是他們的DMS系統，隨著他們推進落地，進展強勁；我們在美國也同樣在試點。因此很期待與Pinewood團隊的這個良好合作關係，並持續迭代，看看如何讓流程更簡單、更快速，並為客戶與員工帶來更好的體驗。

Mike, maybe just to add on a little bit. In terms of integrating a store, I don't know that it would help integrate a store faster during a purchase. What it's mainly intended to do is put the customers and our team members into the same environment to help with productivity. And I mentioned those three or four things in redesigning sales departments, service departments and so on. Those are the things we're doing today.

Mike，我再補充一點。就整合一家門市而言，我不確定它是否能在收購過程中讓整合更快。它主要的目的，是讓客戶與我們的團隊成員處在同一個環境中，以提升生產力。我提到的那三、四件事，例如重新設計銷售部門、服務部門等等，那些才是我們今天正在做的事。

So this is an adjunct to that, that as that AI starts to help be agentic and help make that process simpler and more unified between the customer and our team members, that's what we're really looking for. That's why we invested in Pinewood AI, and it's a big part of our future and being able to drive down that 70% SG&A cost.

因此這是對上述工作的補充；當AI開始具備更強的代理式（agentic）能力，並協助讓流程更簡化、讓客戶與我們團隊成員之間更一致、更整合時，這才是我們真正想要的。這也是我們投資Pinewood AI的原因，它是我們未來的重要一環，並能協助把那70%的SG&A成本往下推。

Well, it sounds like it's on track. Really appreciate it. Thanks, Bryan.

聽起來進度符合預期。非常感謝。謝謝你，Bryan。

Thanks, Mike.

謝謝你，Mike。

Ryan Sigdahl, Craig-Hallum.

Ryan Sigdahl，Craig-Hallum。

Hey, good morning, Ryan, Tina. I want to stay on SG&A. There were some weather challenges from an industry just across the board earlier in the quarter. One of your peers yesterday said that quantified that the exit rate, or trajectory on SG&A to gross profit was much improved at the end of the quarter.

嗨，早安，Ryan、Tina。我想繼續談SG&A。本季較早時，整個產業普遍受到一些天候因素的挑戰。你們的一家同業昨天表示，他們量化後發現，季末時SG&A相對毛利的退出率（exit rate）或趨勢改善很多。

Curious if you guys saw that or if you're willing to comment kind of month by month what that looked like? And then any guideposts you're willing to put on SG&A to gross profit ratio for the year?

想請問你們是否也看到類似情況？或者你們願不願意按月評論一下當時的走勢？另外，對於今年SG&A占毛利比率，你們願意提供任何參考指標（guideposts）嗎？

Ryan, I think that's a fair statement that we saw a softer January. We hit forecast in February or we're real close to it in North America. The UK exceeded forecast. And in March, the UK exceeded forecast and so did the United States.

Ryan，我認為這樣的說法是合理的：我們在1月確實比較疲弱。2月在北美我們達到預測，或非常接近。英國則超出預測。到了3月，英國超出預測，美國也同樣超出預測。

Willing to put any guidepost around the year, what SG&A to gross profit will be?

那你們願意就全年提供任何指標，說明SG&A占毛利會是多少嗎？

I would probably say this more, Ryan, that I think our teams got the attention. They're responsive, they're dynamic, and they've got the con and they can make the decisions as they see what happens in the market. There is large variability across manufacturers and across geographic areas of the country that I think is important for them to respond to.

Ryan，我可能會這樣說：我認為我們的團隊已經提高重視。他們反應迅速、具備彈性，而且掌握情況，能依市場變化做出他們認為合適的決策。不同製造商之間、以及全國不同地理區域之間存在很大的變動性，我認為讓他們能夠因應這些差異非常重要。

Let alone the UK, we're seeing some nice movement because we're able to actually add franchises and partnerships in stores and dual franchises much different than what the UK or Canada is, and we're doing that with Chinese brands, which is helping in the mainstream revenue lines in some way. So we're real pleased with what's happening. And I think SG&A, we're going to continue to drive towards that mid- to high 50 percentile range in the long term.

更不用說英國了，我們看到一些不錯的變化，因為我們實際上能在門市增加品牌授權與合作夥伴關係，並推動雙品牌（dual franchises），這與英國或加拿大的情況很不一樣；而我們正與中國品牌這麼做，某種程度上也有助於主流營收線。所以我們對目前的進展非常滿意。我認為長期來看，我們會持續推動SG&A朝中到高50%區間邁進。

Then just on DFC, your penetration rate is near kind of your long-term target. Curious as you think about the longer term, I mean, some of your peers are on orders of magnitude higher than where you guys are targeting. Any reason why that can't go higher than the 20% and any reconsideration there?

再來談DFC，你們的滲透率已接近你們的長期目標。好奇你們從更長期來看——有些同業的水準比你們目標高出好幾個量級。有什麼原因使得這個比例不能高於20%嗎？你們是否會重新考量？

Hey, Ryan, great question. This is Chuck. So yes, we were very pleased that we hit 18% for the quarter. And I do think that's getting us close to our 20%-plus target. But I think really, it kind of goes back from a forward-looking perspective to Lithia & Driveway just leaning more into used cars.

嗨，Ryan，這是個好問題。我是Chuck。是的，我們很高興本季達到18%。我確實認為這讓我們更接近20%以上的目標。但我想從前瞻角度來看，這其實回到Lithia & Driveway將更多重心放在二手車上。

And we really see a lot of opportunity to grow used cars that really plays in well to DFC's value proposition because historically, and I think going forward, we do better in used car penetration rates than new. And I think new is probably the area that holds us back versus some of the peers that you're probably referencing us, but we definitely see positive upside to the 20%-plus that we're targeting.

而且我們確實看到二手車有很大的成長機會，這也非常契合 DFC 的價值主張，因為從歷史上看，我認為未來也是如此，我們在二手車滲透率方面的表現通常優於新車。我認為新車可能是相較於你可能拿來對比的某些同業而言，讓我們稍微受限的領域，但我們確實看到相對於我們目標的 20% 以上仍有正向上行空間。

Rajat Gupta, JPMorgan.

Rajat Gupta，摩根大通。

Great. Thanks for taking the questions. Just a couple on used in parts and service. In the past, you've typically given more weightage to growing the volumes in that business. It seems like there was some reprioritization that happened in the first quarter given the performance on GPUs.

很好。謝謝讓我提問。我有幾個關於二手車以及零件與維修服務的問題。過去你們通常更偏重於提升該業務的銷量成長。看起來第一季因為 GPU 的表現而出現了一些重新排序的優先順序。

I'm just curious, was there any change in how you're approaching profitability there? Or was it just like a supply issue that led to the flattish volume number in the first quarter? And just how should we think about used car growth versus GPUs for the remainder of the year?

我想了解的是，你們在那邊的獲利策略是否有任何改變？還是只是供應問題導致第一季的銷量數字大致持平？另外，今年剩餘時間我們應該如何看待二手車成長與 GPU 之間的取捨？

Rajat, this is Bryan. I think this is our -- the secret sauce of Lithia. I mean we hit 1.25% used to new ratio, which is the first time in a long darn time that we were able to do that. And it's coming off the back of a marketplace to some extent that's a little tighter than it typically is. But values are still strong.

Rajat，我是 Bryan。我認為這就是 Lithia 的「獨門配方」。我們達到二手對新車比 1.25%，這是很長一段時間以來第一次能做到。某種程度上這是建立在市場供給比以往更緊的背景之上。但價格仍然強勁。

And I think as we think about how do we drive performance in used cars, it's getting that $26 billion to $27 billion of revenue that had never really sold value auto cars three years ago, four years ago to understand that, that is where the profits are in the business. And that ability to procure those through trade-ins or through other sources is quite important.

而且當我們思考如何推動二手車表現時，關鍵在於讓那過去三、四年前從未真正銷售「價值型車款」的 260 億到 270 億美元營收規模，理解利潤其實就在這門生意裡。而透過以舊換新或其他來源取得這些車源的能力相當重要。

If you look sequentially quarter-over-quarter, including F&I, our used cars moved from [$2,830] in Q4 to [$3,309]. It was up $470. And I would attribute most of that to some repricing efforts on two key areas, and I may have spoke about that on the last call. It's primarily the value auto cars, okay?

如果你看按季的環比（包含 F&I），我們二手車的單車毛利從第四季的 [$2,830] 提升到[$3,309]。增加了 470 美元。我會把其中大部分歸因於我們在兩個關鍵領域做了一些重新定價的努力，我可能在上次電話會議也提過。主要是價值型車款，好嗎？

And then secondarily, it's vehicles that are low mileage for their model or their vintage, okay? And those two areas where we're getting some pretty good traction fairly quickly. Also remember that in our ecosystem, a lot of stores price things because that's what they can sell it for, okay?

其次是里程數相對於其車型或車齡（年份）偏低的車輛，好嗎？這兩個領域我們很快就取得相當不錯的進展。也請記得，在我們的生態系裡，很多門店定價是因為那就是他們能賣出的價格，好嗎？

But in our ecosystem, because we have Driveway and GreenCars marketplaces, it reaches out beyond the 30- to 50-mile range that a typical stores reach can achieve. And we're now reaching [500], [1,000], [2,000] across the entire country. So when stores are a little gun-shy because they don't have the ability to sell that car at that price, when you start to expand the ecosystem, you all of a sudden are able to expand your pricing model. And I think that's where I'd attribute a lot of that increase sequentially.

但在我們的生態系中，因為有 Driveway 和 GreenCars 的市集平台，它的觸及範圍超越一般門店典型可達的 30 到 50 英里半徑。我們現在的觸及已經是全國範圍的 [500]、[1,000]、[2,000]（英里）。所以當門店因為沒有能力以那個價格把車賣掉而有點畏縮時，一旦你擴大生態系，就會突然有能力擴展你的定價模型。我認為這就是我會把這次環比提升很大一部分歸因於的原因。

Understood. That's helpful color. And just on parts and service, second quarter of pretty good profit growth despite some of the weather challenges you might have seen. Any way to just double-click on that and give us a little more detail into what's driving that?

了解。這些補充很有幫助。另外關於零件與維修服務，第二季在你們可能也看到的一些天候挑戰下，仍然有相當不錯的獲利成長。能否再深入說明一下，驅動因素是什麼？

I know maybe UK maybe had a bit of an FX benefit, but maybe if you want to break up US versus UK as well, that would be helpful. And just any more detail within those regions and what's driving the growth?

我知道也許英國那邊可能有一些匯率（FX）上的助益，但如果你能把美國與英國拆開來談也會很有幫助。以及在這些地區內部，還有哪些更細的因素在推動成長？

Yes. The -- our growth globally, the UK is slightly better than North America, but North America is starting to gain traction. What we're finding, again, when we think about the customer experience and taking out layers and making it simpler, more transparent and more empowered by the customer, just creates better experiences.

是的。我們在全球的成長中，英國略優於北美，但北美也開始逐步取得動能。我們發現，當我們思考客戶體驗、去除層級、讓流程更簡單、更透明並讓客戶更有掌控感時，就會帶來更好的體驗。

And I think when we think about going to market, it is about those frontline people making a difference each and every day to create memorable experiences. And that happens through lots of different options, okay? And those options create what we would call individualized experiences for each customer, where one customer may want to sit on their couch or they may want us to pick up their car from work and another might like to enjoy sitting in our living room and seeing the new product and so on and so on.

而且我認為當我們思考市場推進（go-to-market）時，重點在於第一線同仁每天都能帶來差異，創造令人難忘的體驗。而這可以透過很多不同的選項來達成，好嗎？這些選項會為每位客戶創造我們所稱的「個人化體驗」：有的客戶可能想坐在沙發上完成流程，或希望我們到他工作的地方取車；另一位客戶可能喜歡坐在我們的客廳裡看看新產品，如此等等。

So it's really giving our people the flexibility to think on their feet, okay, and then the ability to execute lots of different ways to create a more appealing experience and a more memorable experience so they continue to come back month after month during their ownership life cycle.

所以這其實是在給我們的人員更大的彈性，能夠臨場應變，好嗎？並且能以多種方式執行，打造更具吸引力、也更令人印象深刻的體驗，讓客戶在其持有週期中每個月都願意持續回來。

Understood. Okay, great. Thanks for the color.

了解。好，很棒。謝謝補充說明。

Alex Perry, Bank of America.

Alex Perry，美國銀行。

Hi. Thanks for taking my questions here. I guess, first, I just wanted to ask a little bit more about your outlook for the UK. It seems like performance there is improving. Can you talk about what specifically is driving that and if you would expect that to continue?

嗨。謝謝讓我在這裡提問。我想先多問一點你們對英國市場的展望。看起來那邊的表現正在改善。你能談談具體是什麼在推動，以及你是否預期這種趨勢會延續嗎？

Sure, Alex. Bryan again. I think we've got an exceptional group of leaders and an exceptional group of operators that over the last two years, we've been able to purge and then modify the network to adjust to the consumer demands in the United Kingdom, and that includes adding Chinese brands, eliminating some other brands, finding some underperforming stores and getting rid of those.

當然可以，Alex。還是 Bryan。我認為我們有一群非常出色的領導團隊與營運團隊，過去兩年我們得以清理（汰除）並調整網絡，以符合英國消費者需求；這包括引進中國品牌、淘汰一些其他品牌、找出表現不佳的門店並將其退出。

But most importantly, this is coming from the United Kingdom and Neil, Richard and our Vice Presidents that are there and their teams underneath them. They are very good at structurally putting in plans and then executing to that plan. It's a real refreshing thing to be able to know that halfway through the month that they're going to hit forecast or they're going to be above forecast, [$1.2 million] or whatever it is, they're very definitive and they're very intentional in their actions, okay?

但最重要的是，這些成果來自英國當地的 Neil、Richard 以及我們在那邊的副總裁們，還有他們底下的團隊。他們非常擅長在結構上制定計畫，並依計畫執行。能在月中就知道他們會達成預測或超越預測（例如高出 [$1.2 million] 或其他數字），這真的很令人耳目一新；他們的行動非常明確，也非常有目的性，好嗎？

We're really hoping that the example that they set, as we start to roll out Pinewood AI into the United States and into Canada, what they're seeing over the last two years by being on Pinewood AI is an experience where their customers and their team members are sitting in the same environment.

我們非常希望，當我們開始把 Pinewood AI 推廣到美國與加拿大時，他們所樹立的典範能被複製；過去兩年使用 Pinewood AI 的經驗顯示，他們的客戶與團隊成員是在同一個環境中互動。

In fact, many of the stores now have moved their service drives from the back of the dealership or back of house to right on the showroom floor where they're actually meeting and greeting customers and some of those are even multiple tasks, meaning they may deal with sales, they may deal with service, they may deal with accessories or whatever else it may be, where they're truly thinking about a one-touch type of experience.

事實上，許多門店現在已把服務接待動線從經銷商後方或後場移到展示間地板上，直接在那裡迎接並接待客戶；其中一些甚至是多工角色，也就是他們可能同時處理銷售、處理維修服務、處理配件或其他事項，真正以「一次接觸（one-touch）」的體驗為思考核心。

And then this is all wrapped around the idea of the Pinewood AI is now starting to give them the ability to manage their expenses in an incremental way downward, okay? And I think -- if I remember right, it was 447,000 hours that our CFO there, Richard had defined that in primarily service loans, AI will be able for them to capture that money within the next four quarters or so. So they're making pretty good progress on that, and we're pretty excited because that is the seeds to what's going to happen in North America, and we're real proud of their leadership over there.

而這一切都圍繞著 Pinewood AI 的理念：它現在開始讓他們能以漸進的方式向下管理費用，好嗎？而且我記得沒錯的話，我們那邊的 CFO Richard 曾界定為 447,000 小時，主要是在服務貸車（service loans）方面，AI 將能讓他們在接下來大約四個季度內把這筆價值回收回來。所以他們在這方面進展相當不錯，我們也很興奮，因為這就是北美將要發生事情的種子，我們也為他們在那邊的領導力感到非常自豪。

That's incredibly helpful. And then just my follow-up question. I just wanted to ask if you had seen any impact from the current sort of geopolitical environment. Any slowdown on the new vehicle side as you sort of look through April, any change in mix? Seemed like you hit some of your targets through March. So that would sort of indicate that you haven't been seeing anything, but just wanted to ask about that.

這非常有幫助。接著是我的追問。我想請教您是否看到目前這種地緣政治環境帶來任何影響。就新車端而言，您在回顧四月時是否看到任何放緩、產品組合是否有任何變化？看起來您在三月之前達成了一些目標。所以這似乎表示您並沒有看到什麼影響，但我還是想就此請教。

Yes. I think it appears that the quarter ended up strong. We feel pretty good about the start of Q2. I think that the geopolitical climate has been balanced with some higher tax returns. I mean I really feel like it doesn't feel quite as good as March was in the United States. But I also know that if the war can calm down and if tariffs can gain some clarity and some other things can fall into the line that we can power through this and hopefully have a decent second half of the year.

是的。我認為本季看起來以強勁作收。我們對第二季的開局感覺相當不錯。我認為地緣政治氣候的影響，某種程度上被較高的退稅所平衡。我的意思是，我確實覺得在美國的體感沒有三月那麼好。但我也知道，如果戰事能夠緩和、關稅能更明朗，還有其他一些事情能夠到位，我們就能挺過去，並希望下半年表現不錯。

So it's a little bit of a mix of things, but we're pleased with where the market is at despite it only being a [15.8 million] SAAR as an industry. We really believe that when affordability can get a grip on things and start to trend back down a little bit, then we should be able to start trickling up again towards that 17 million units a year number.

所以這是多種因素交織的結果，但儘管整體產業的季調年率（SAAR）只有約[1,580萬]，我們仍對目前市場狀況感到滿意。我們真的相信，當可負擔性問題能夠得到控制並開始稍微回落時，我們就應該能再次逐步回升，朝向每年1,700萬輛的水準。

Perfect. That's really helpful. Best of luck going forward.

太好了。這真的很有幫助。祝您接下來一切順利。

Jeff Lick, Stephens.

Jeff Lick，Stephens。

Good morning. Thanks for taking my question. Congrats on a great quarter, guys. Bryan, I was wondering if we could dig into the used a little more GPU at $1,700-ish. First off, could you remind us what percent you guys self-source versus any sourcing from auctions?

早安。謝謝讓我提問。各位，恭喜這一季表現很棒。Bryan，我想更深入聊一下二手車，單車毛利（GPU）大約在1,700美元左右。首先，能否提醒我們，你們自有來源（self-source）的比例，與從拍賣等管道採購的比例各是多少？

And then I was just wondering, Bryan, if you could just kind of pontificate a little bit as we get into these lease returns and we'll probably have a little bit more of a higher level of supply in the summer. Does that change the dynamic one way or another for you? I'm assuming it does, but I'm just curious how that will change the dynamic for you guys.

另外，Bryan，我也想請你稍微談談：隨著我們進入這些租賃到期回收（lease returns）的階段，夏季供給可能會在較高水準。這會不會以某種方式改變你們的經營動態？我猜應該會，但我想了解這會如何改變你們的動態。

Good insights, Jeff. Our customer sourced vehicles are $2,483 a unit. And remember, without F&I, the numbers I gave previously were with F&I, okay? Our $2,483 on our customer acquired units, okay? The units that are acquired outside from the -- not from the customers like auction are around $700 to $800, okay? So it's a big delta between those. At one time, you remember, we were $1,000 to $1,100 difference. Now the difference is $1,500, okay?

很好的觀察，Jeff。我們由客戶來源取得的車輛，單位毛利是2,483美元。另外提醒一下，我先前提供的數字是包含F&I（融資與保險）的，對吧？我們客戶取得（customer acquired）的單位是2,483美元，好嗎？而那些不是從客戶取得、而是外部取得的車（例如拍賣）大約是700到800美元，好嗎？所以兩者差距很大。你還記得，以前差距大概是1,000到1,100美元。現在差距是1,500美元，好嗎？

So it's hyper important of our ability to continue to acquire cars from trade-in. And I think if you look at where we are, this is a big opportunity for Lithia. I mean we acquired less cars year-over-year by about 3% from our customers, okay? But we also still drove up our margins. So that, I believe, is more of a pricing function than a cost function, okay?

因此，我們持續透過以舊換新（trade-in）取得車源的能力極其重要。而且我認為，如果你看我們目前的位置，這對Lithia來說是個很大的機會。我的意思是，我們從客戶那邊取得的車，年對年大約少了3%，好嗎？但我們仍然把毛利拉高了。所以我相信，這更多是定價因素，而不是成本因素，好嗎？

But I believe that we can attack both if we're properly valuing cars that are coming in off trade-in, making sure that any online pricing through Driveway or others, okay, are met and matched to be able to ensure that those customers are creating a two-part buying process, meaning they're giving us their trade and they're buying a car from us.

但我相信，如果我們能正確評估以舊換新進來的車輛價值，並確保Driveway或其他平台上的任何線上定價都能被滿足並匹配，就能同時在兩方面發力，確保客戶形成「兩段式」購買流程：也就是把舊車交給我們，並且向我們買車。

So we're pretty pleased with what's happening there. In terms of the off-lease vehicles, -- we do see a little bit of a bulge there. We're actually -- it's surprising when we try to push used cars and we talk Value Auto; some stores get it. Others just go buy more lease vehicles. So off-lease vehicles. And to be fair, that's okay, too. We were actually at 22% of our volume was from -- I may have that off.

所以我們對那邊的進展相當滿意。至於租賃到期回收車（off-lease vehicles），我們確實看到供給有一點隆起。其實——很令人意外的是，當我們嘗試推動二手車、並談Value Auto時，有些門店能理解。其他門店就只是去買更多租賃車。也就是off-lease車。公平地說，那樣也可以。我們的銷量中有22%來自——我可能記錯了。

I'm sorry, 40% of our volume was CPO last quarter, okay? So that was a pretty big amount, okay? And I think that could be indicative that we've got lots of stores. That's natural, okay? I mean that's part of our staple diet in our business that you just automatically sell those CPO cars.

抱歉，上季我們的銷量中有40%是CPO（原廠認證中古車），好嗎？所以那是相當大的比重，好嗎？我認為這可能反映出我們有很多門店。這很自然，好嗎？我的意思是，這就是我們業務中的基本主食之一，你就是會自然而然地賣那些CPO車。

So I think with more cars available, it will help us definitely. We just want to make sure that our teams are still focused on their core product between 4 and 8 years and most importantly, make sure they've got the affordable cars of $15,000 average price or so in our Value Auto cars.

所以我認為，更多車源可用，肯定會對我們有幫助。我們只是想確保團隊仍聚焦在核心產品：車齡4到8年的車；最重要的是，確保在我們的Value Auto車款中，有平均價格約15,000美元左右的可負擔車款。

And then just a quick follow-up. You had talked on the last call about some of the used car managers maybe being a little quick to break price and maybe not the greatest buyers. And so you kind of thought, hey, there was some room there on the spread at that $1,700. I'm just curious where you're at there and where you think you might be able to get that because in previous presentations last year, potential of $1,800, $2,100 for GPU.

再一個簡短追問。你在上次電話會議提到，有些二手車經理可能太快降價（break price），而且可能不是最好的買家。所以你認為在1,700美元GPU那邊，價差（spread）還有一些空間。我想了解你目前的進展，以及你覺得可以提升到什麼程度，因為你們去年先前的簡報提到GPU可能到1,800、2,100美元。

Jeff, we're not going to be -- we want you to be conservative here in this response, but these numbers will probably shock a lot of people on the call, okay? Our price to market, okay, the price that we sell our vehicles for through both Driveway because our stores price cars on Driveway and our stores is approximately 95% of what the one-price used car retailers are selling the same car for.

Jeff，我們在這個回答上不會——我們希望你在這裡保守一點，但這些數字可能會讓很多在電話會議上的人感到震驚，好嗎？我們的「貼近市場定價」（price to market），也就是我們透過Driveway（因為我們門店也在Driveway上為車輛定價）以及門店本身出售車輛的價格，大約是同款車在一口價二手車零售商（one-price used car retailers）售價的95%左右。

That's an apples-to-apples comparison. If you then figure that your average price is somewhere between $25,000 and $30,000, you're talking about $1,250 that could come just from the pricing equation, okay? Why can't that happen overnight, okay? The reason is because most of our cars are still sold within 20 to 30 miles of the footprint of those cars, okay?

這是同類可比（apples-to-apples）的比較。如果再考慮到平均車價大約在25,000到30,000美元之間，光是定價這個因素，就可能帶來約1,250美元的提升空間，好嗎？為什麼不能一夜之間就發生，好嗎？原因是，我們大多數車仍是在該車所在據點（footprint）20到30英里範圍內售出，好嗎？

So the more that we can create visibility, you get more eyeballs on cars and the higher demand cars then will command the price that are needed, okay? Where we do pretty good and we sell cars about for market is certified, okay? That's where we sell cars for market, okay? What we don't do is when it's the Value Auto car or it's a car that's less than its miles for its age, that's where we lose approximately 8% to 9% on pricing, okay? And that makes up that entire 5%, okay?

所以，我們越能提升能見度、讓更多人看到車，需求較高的車就越能取得所需要的價格，好嗎？我們做得相當不錯、且售價大致貼近市場的是認證車（certified），好嗎？那是我們能以市場價賣車的地方，好嗎？而我們做得不夠好的是：當它是Value Auto車，或是某台車的里程相對其車齡偏低時，我們在定價上大約會少8%到9%，好嗎？而那就構成了整個5%的差距，好嗎？

So that's our focus is how do you convince your stores to look past the transaction, okay, that isn't getting them to market pricing on the deal. And that is some underpricing or dropping your pricing too quickly. But most of the time, it's underpricing. If they don't price the car right at the start. Why? Their salespeople, their service departments and their sales managers are convinced that, that car can't sell for that price, okay?

所以我們的重點是：你要如何說服你的門店不要只看單筆交易，好嗎？那樣做並不能讓他們在這筆交易上達到市場定價。而那通常會變成某種低估定價，或是把價格降得太快。但大多數時候，是低估定價。如果他們一開始就沒有把車定對價。為什麼？因為他們的銷售人員、售後服務部門以及銷售經理都深信：那台車不可能用那個價格賣得掉，好嗎？

And they don't let it season long enough to be able to do that. I believe, and I think our team believes, velocity can hurt your gross profit in used cars. Velocity can hurt your gross profit in used cars, okay? Your ideal time to sell used cars is between 15 and 40 days, okay? And if you sell it before that, you probably sold it for too little, okay? So it's a function of both eyeballs, belief and market pricing to be able to get that $1,200 approximate that we know is sitting out there.

而且他們也不讓它在庫齡上「熟成」得夠久，才能做到那件事。我相信，而且我想我們團隊也相信，追求速度（velocity）可能會傷害二手車的毛利。追求速度可能會傷害二手車的毛利，好嗎？你賣二手車的理想時間是在 15 到 40 天之間，好嗎？如果你在那之前就賣掉了，你很可能是賣得太便宜了，好嗎？所以這同時取決於曝光量、信念以及市場定價，才能把我們知道外面大約有的那 1,200 美元抓回來。

Awesome. Thanks very much, and best of luck on Q2.

太棒了。非常感謝，祝你們第二季一切順利。

John Saager, Evercore.

John Saager，Evercore。

Good morning, everyone. Thanks for taking my questions. I wanted to discuss the rollout of Pinewood. So you're expecting to complete that by the end of '28? Can you discuss the impact that will have on expenses during the course of the rollout? I would expect that there would be some headwinds that you encounter along the way as you're working through the process. Is there any way you could quantify those headwinds for us?

各位早安。謝謝讓我提問。我想討論 Pinewood 的推行（rollout）。所以你們預期在 2028 年底前完成？能否談談在推行期間，對費用會造成什麼影響？我預期你們在推進流程時，途中會遇到一些逆風。你們有沒有辦法幫我們量化這些逆風？

Sure, John. We're basically doing a rollout by manufacturers. And what we saw in the United Kingdom, and this is data that's, what, three quarters to five quarters old. It took us about two quarters to complete the rollout on 150 businesses in the United Kingdom. It went extremely smoothly.

當然可以，John。我們基本上是按製造商來推行。我們在英國看到的情況——而且這些數據大概是三到五個季度前的——我們大約花了兩個季度，就在英國完成了 150 家業務單位的推行。進行得非常順利。

We did not see additional costs in that rollout. It's truly a two- to three-week prep process and a two- to three-week climatization process where they get used to that work. We're also going to be preempting in the sales department a CRM product. So they'll get used to the CRM product way before the Pinewood full DMS comes in and about one-third of our stores are already on that product in North America.

我們在那次推行中沒有看到額外成本。它確實是一個為期兩到三週的準備流程，以及兩到三週的適應（climatization）流程，讓他們習慣那套工作方式。我們也會在銷售部門先行導入一套 CRM 產品。因此在 Pinewood 完整的 DMS 上線之前，他們就會先熟悉 CRM 產品；而且在北美，我們大約三分之一的門店已經在使用那套產品。

So we're very cognitive of that. There was a cost last quarter, if you remember, in CDK that we ended up buying out that contract. So that's been front-loaded and is behind us, okay? But beyond, once you get through the integration point, which is truly a two-month period, okay, the true cost of Pinewood is lower.

所以我們對此非常有意識地在管理。如果你還記得，上季在 CDK 那邊有一筆成本，因為我們最後把那份合約買斷了。所以那已經前置認列，現在也已經過去了，好嗎？但除此之外，一旦你度過整合節點——那其實就是大約兩個月的期間，好嗎——Pinewood 的實際成本是更低的。

And most importantly, the true benefit of Pinewood is it allows you to do things and have our -- the IT solutions because it puts the customer and the team member into the same environment, there's not redundancies, okay? And today, with multiple vendors, with CDK having all these attached vendors, there's massive amounts of redundancy, okay? Those redundancies can come out almost immediately. Hopefully, that helps, John. Follow-up on that?

而且最重要的是，Pinewood 的真正效益在於：它讓你能做更多事情，並讓我們的——IT 解決方案——因為它把客戶與團隊成員放在同一個環境裡，就不會有重複，好嗎？而今天，因為有多個供應商，加上 CDK 還綁了這麼多附屬供應商，就產生大量重複，好嗎？那些重複幾乎可以立刻被移除。希望這能幫到你，John。還有追問嗎？

Yes, that makes sense. Actually, the timing of that is fast. But the -- it is going to take a long time to get there until 2028. And so I wanted to ask about like how does that impact the timing of the path to your medium-term target. So to get SG&A as a percent of gross down to that 60% to 65% range, what are the primary initiatives or drivers you're using to get there?

有，這很合理。其實那個時程很快。但是——要到 2028 年才完全到位，還是需要很長時間。所以我想問的是：這會如何影響你們達成中期目標的時間路徑？也就是要把 SG&A 佔毛利（gross）的比例降到 60% 到 65% 的區間，你們用來達成的主要措施或驅動因素是什麼？

Is there like a revenue per employee number that you have in mind? Or is there some other way of tracking that progress? And do you need Pinewood to be fully rolled out before?

你們心中是否有一個「每位員工營收」的指標？或是用其他方式來追蹤進度？以及在達成之前，是否需要 Pinewood 完全推行到位？

No, we don't. No, we don't. I mean, Pinewood is going to help us take it from mid-60s to mid-50s, okay? And I think that's how we think about it. So in the interim, the single biggest thing that can help us get there is a marketplace that has stable GPUs and is a 17 million SAAR, okay, because we gain leverage as we gain volume, okay?

不，我們不需要。不，我們不需要。我的意思是，Pinewood 會幫助我們把它從 60% 中段降到 50% 中段，好嗎？而我想我們就是這樣看待它的。所以在此期間，能幫我們達成的最大因素，是市場環境要有穩定的 GPU（單車毛利），以及 SAAR 在 1,700 萬輛左右，好嗎？因為隨著我們的銷量增加，我們就能取得營運槓桿，好嗎？

Alongside that, what can we focus on? We focus on what we can control. And we've basically built a four-legged stool that's wrapped around a couple of things. First and foremost, we call it the Everyday Plan. It came off the back of the 60-Day Plan a couple of years ago. That's vendor management, that's compensation management. And that's typical productivity and efficiency metrics that our people are pretty good at, okay, and they're pretty savvy at.

除此之外，我們能專注什麼？我們專注在我們能控制的事情。我們基本上建立了一個「四腳凳」的架構，圍繞幾件事。第一也是最重要的，我們稱之為 Everyday Plan（每日計畫）。它是幾年前 60-Day Plan（60 天計畫）的延伸。那包含供應商管理、薪酬管理。以及一些典型的生產力與效率指標；我們的人在這方面相當擅長，好嗎，也很精明。

The other three items are what I mentioned briefly -- it's job combinations. It's re-architecting the sales departments and the service departments to remove layers and combine jobs, okay? It's managers and leadership overseeing multiple departments and multiple stores, okay, which we've moved that quite nicely. We're up to almost 2.5 stores per office manager and about 1.4 stores for a general manager, okay?

另外三項就是我剛才簡單提到的——是職務合併。也就是重新架構銷售部門與服務部門，移除層級並合併職務，好嗎？還有讓經理與領導層同時管理多個部門與多家門店，好嗎？我們在這方面推進得相當不錯。我們現在幾乎達到每位辦公室經理負責約 2.5 家門店，而每位總經理約負責 1.4 家門店，好嗎？

Big moves there. And lastly, and not least, is this idea of remote F&I or remote desking or possibly even remote service advisers, okay, meaning when you're maybe half a person short, you don't add a full person, okay? And that makes massive -- and that's probably the easiest example, but that's our push each and every day in our organization over the last few quarters.

這些都是很大的變革。最後但同樣重要的是：遠端 F&I（融資與保險）或遠端議價台（remote desking），甚至可能是遠端服務顧問的概念，好嗎？意思是當你可能只差半個人手時，你不會去增聘一整個人，好嗎？而這會帶來巨大的——這大概是最容易理解的例子——但這就是我們過去幾個季度在組織內每天推動的方向。

If I could maybe push back just a little bit on that. You've had relatively stable GPUs for the last 2 or 3 quarters now. And the long-term trend on SAAR is around $16 million, not $17 million. So is it realistic to sustainably have SG&A as a percent of GP below 60% given those long-term trends?

如果我可以稍微反駁一下。你們過去 2 到 3 個季度的 GPU 相對穩定。而 SAAR 的長期趨勢大約是 1,600 萬輛，不是 1,700 萬輛。所以在這些長期趨勢之下，要可持續地讓 SG&A 佔 GP（毛利）的比例低於 60%，現實嗎？

Yes. John, we -- our GPU decrease each of the last four quarters has been around $150 to $200 a unit. So -- and that on a base of 100,000, 150,000 units, it's a big number, okay? And that's something that we have to manage. So that is something. I do believe that the volumes for some reason, each and every quarter, there's something that's semi-soft.

是的。John，我們過去四個季度每一季的 GPU 下滑大約是每台 150 到 200 美元。所以——以 10 萬到 15 萬台的基數來看，這是很大的數字，好嗎？而這是我們必須管理的事情。所以這確實是一個因素。我也確實相信，不知道為什麼，每一季在量的表現上總會有一些偏軟的地方。

And again, this quarter, you're seeing it with the 3 people that have reported so far. We had one person that was double-digit declines in new vehicle sales, and that all has implications on your SG&A costs. So I really believe that a $17 million SAAR is out there. It may not be coming off the back of tariffs and a war, but I hope things can settle down because I think there's a world where that can happen, okay? If it doesn't, we're still managing on those four legs of our stool, okay?

而且同樣地，本季你也從目前已經回報的 3 位人員身上看到了這點。我們有一位新車銷售出現兩位數下滑，而這些都會影響你的 SG&A 成本。所以我真的相信，市場上是有 1,700 萬 SAAR 這個水準的。它可能不是在關稅與戰爭的背景下出現，但我希望事情能夠平息下來，因為我認為有一種情境是可以發生的，好嗎？如果沒有發生，我們仍然會靠我們這張凳子的四條腿來管理，好嗎？

And we'll continue to drive down costs. And I think in the quarter, it appears that we're right in step and stride in terms of year-over-year SG&A, okay, and should be able to exacerbate that, okay, relative to our peers. The other thing to remember is we also have the tailwind of DFC, okay? And that's on track to hit somewhere around $100 million in profitability on its way to $0.5 billion profitability. So that's not an SG&A, okay?

而我們也會持續推動成本下降。我認為就本季而言，從年對年 SG&A 的角度看，我們看起來是步調一致、進展順利的，好嗎？而且相較同業，我們應該能把這個優勢再擴大，好嗎？另外要記得的是，我們也有 DFC 的順風，好嗎？它正按計畫推進，獲利可望達到約 1 億美元，並朝著 5 億美元獲利邁進。所以那不是 SG&A，好嗎？

So let's not focus as much on SG&A because we are an industry that has costs, but that also gives us the opportunity to drive them down. And I think as an organization, we typically -- if you equalize for the companies that have the United K business -- UK business, we're typically either second or third lowest in terms of SG&A cost as a company, okay? Important to remember.

所以別把焦點放在 SG&A 上太多，因為我們所處的產業確實有成本，但也給了我們把成本降下來的機會。我認為以組織來看，通常——如果把擁有 United K 業務的公司因素拉平——就公司層級的 SG&A 成本而言，我們通常是第二低或第三低，好嗎？這點很重要，要記得。

Thank you very much.

非常感謝。

Chris Bottiglieri, BNP Paribas.

BNP Paribas 的 Chris Bottiglieri。

Hi, thanks for taking the question. This first one is, can you elaborate on the $20 million contract buyout? Is that a DMS? Or what was that? What does that implicate for future cost savings?

嗨，謝謝讓我提問。第一個問題是，你們能否詳細說明那筆 2,000 萬美元的合約買斷？那是 DMS 嗎？或那是什麼？這對未來的成本節省意味著什麼？

Yes. It's just the planned vendor termination where, with part of it, there was a buyout of the contract.

是的。那只是計畫中的供應商終止合作，其中一部分涉及合約買斷。

Okay. And then I wanted to ask, you mentioned the importance of marketplace to getting your targeted GPU stability. Just hoping to get an update on Driveway. And then it seems that you made a change to the Chief Technology Officer earlier in the quarter.

了解。接著我想問，你提到 marketplace 對達成你們目標 GPU 穩定性的重要性。想請你更新一下 Driveway 的狀況。另外看起來你們在本季稍早更換了首席技術長。

Just kind of curious if you can give us an update on the road map for technology and like what are some of the initiatives that have to be done, what's gone right, what's gone wrong? Just an overall update on all that would be helpful.

想請教你是否能更新一下技術路線圖，例如有哪些必須完成的計畫、哪些做對了、哪些做錯了？如果能就整體狀況做個更新會很有幫助。

You bet, Chris. This is Bryan again. It was neat that the management team really wanted, because the ecosystem is so integrated, they wanted to take IT themselves, okay? The aftersales team wanted to integrate that. The sales teams wanted to integrate everything across the DFC, Driveway and GreenCars.

當然可以，Chris。我是 Bryan，再次回答。管理團隊真的很希望——因為生態系整合度很高——他們想把 IT 直接納入自己管理，好嗎？售後團隊希望把那部分整合進來。銷售團隊則希望把 DFC、Driveway 和 GreenCars 之間的一切都整合起來。

So they were the ones that basically built structure to allow George to be able to go on to bigger and better things, which is exciting. George is a class act and will end up in a good space doing coding and other things that he is amazing at, okay? But as an organization, we just felt it was an impediment having it as an independent department and then it needed to be integrated into operations.

所以基本上是他們建立了架構，讓 George 能夠去追求更大、更好的發展，這很令人振奮。George 是個很棒的人，最後會在一個很好的位置上做程式開發以及其他他非常擅長的事情，好嗎？但就組織而言，我們覺得把它當作獨立部門反而成了阻礙，必須把它整合進營運。

Fundamentally, to be able to respond quicker and to be able to capture that marketplace. So Driveway as a whole, it was up 8% in volume across its platform, which was a nice number. And more importantly than that, we've started to gain some traction in new vehicles. New vehicles was up almost 500% in Driveway business. So big numbers there. It's still there.

根本上是為了能更快回應、並能掌握那個 marketplace。就 Driveway 整體而言，其平台的交易量成長了 8%，這是個不錯的數字。更重要的是，我們開始在新車方面取得一些進展。Driveway 業務中的新車幾乎成長了 500%。所以那裡的數字很大。它仍然在那裡。

I don't know that we dedicate enough resources to it, but we also believe that there will be a time and place where that marketplace disconnects again because we think the market -- the e-commerce market is being pushed somewhat fictitiously in regards to one of the competitors out there.

我不確定我們是否投入了足夠的資源，但我們也相信，未來會有某個時間點與情境，讓那個 marketplace 再次出現脫鉤，因為我們認為市場——電商市場——在某種程度上是被其中一個競爭對手以較為不真實的方式推動。

And once their financing changes, it should change and possibly open up an opportunity to turn the accelerator back on in Driveway. So real successful. We're still sitting at 96% of all customers that come into Driveway are still new to the ecosystem entirely. So pretty cool to be able to have that still out there.

而一旦他們的融資條件改變，情況就應該會改變，並可能打開一個機會，讓我們在 Driveway 上把油門再踩下去。所以非常成功。我們目前仍然是：所有進到 Driveway 的客戶中，有 96% 仍然是對整個生態系完全新的客戶。所以能夠仍然維持這點，真的很酷。

Appreciate it. Thank you.

了解。謝謝。

Thanks, Chris.

謝謝你，Chris。

John Babcock, Barclays.

Barclays 的 John Babcock。

Hey, Corinne, thanks for taking my questions. I guess just first on the M&A market. Could you talk about how that looks right now? And then as a tag-along to that, you obviously have typically divested a couple of stores each year.

嘿，Corinne，謝謝讓我提問。我想先問一下併購（M&A）市場。你能談談目前看起來如何嗎？另外延伸一下，你們通常每年也會處分幾家門市。

And I just want to get a sense, recognizing future acquisitions may add to that, how much of your footprint do you think you still have to turn over? So in other words, maybe it's underperforming or for some other reason, you want to divest it? So any color you could provide on that would be useful.

我想了解一下，在考量未來的收購可能會增加門市數的前提下，你覺得你們的據點版圖還有多少需要汰換？換句話說，可能是表現不佳或其他原因，你們想把它處分掉？如果你能提供一些看法會很有幫助。

Great, John. As you can tell, we've been -- we have always remained disciplined on acquisitions. We typically pay somewhere between 10% and 30% of revenues. And there's deals, including one large deal out there that's sold for 120% of revenue. We don't see how those returns can make sense. And obviously, with our stock price at where we're at, that's what we reinforce. Okay?

很好，John。如你所見，我們一直——我們在收購上始終保持紀律。我們通常支付的價格大約是營收的 10% 到 30%。而市場上也有交易——包括一筆大型交易——以營收的 120% 成交。我們看不出那樣的報酬如何能合理。而且很明顯，以我們目前的股價水準，我們也會強化這個立場。好嗎？

In terms of what have we done and what does our network look like in terms of cleanliness, we've done almost $500 million so far in revenue this year. That's net of divestitures. We've got, let's see, one, two. We've got three stores under contract and two stores that are close to being LOI'd. And outside of that, I've got one more store that we would consider not part of our network strategy and will be divested.

就我們做了什麼、以及我們的網絡在「乾淨度」方面看起來如何而言，我們今年迄今已經做了將近 5 億美元的營收。那是扣除處分之後的淨額。我們有，讓我看看，一、二。我們有三家門市已在合約中，還有兩家門市接近簽署 LOI（意向書）。除此之外，我還有一家門市我們會認為不屬於我們的網絡策略，將會被處分。

Those are all in North America. The United Kingdom is fully clean, okay? They're really now iterating on which brands are best to put into their facilities. And outside of that, we shouldn't have many other problems other than there's an occasional time where someone offers us some stupid amount of money and the stores always kind of performed mediocre.

這些都在北美。英國那邊已經完全整理乾淨了，好嗎？他們現在真正是在反覆評估，哪些品牌最適合放進他們的據點。除此之外，我們不應該還會有太多其他問題，除非偶爾有人出價一個很荒謬的金額，而那些門市的表現一向都算普通。

In those times, we do redeploy the capital into buybacks or to finding other acquisitions that are more attractive pricing-wise, okay? Our focus, again, is in the north or the Southeast and the South Central, okay? And again, that is where stores are a little bit pricier, okay? We have been able to find some pretty nice acquisitions at appropriate pricing, but the market is still quite frothy.

在那種情況下，我們會把資本重新配置到庫藏股回購，或去尋找其他在價格上更具吸引力的收購標的，好嗎？我們的重點再次強調，是在北部或東南部，以及中南部，好嗎？而且同樣地，那些地區的門市通常會貴一些，好嗎？我們確實能以合適的價格找到一些相當不錯的收購案，但市場仍然相當火熱。

Okay. And now just shifting gears to parts and service. Could you break down your growth this last quarter across customer pay and warranty?

好的。現在把話題轉到零件與售後服務。你能否拆解一下你們上季在客戶自費與保固之間的成長表現？

Our gross mix, are you looking for mix?

你是想問我們的毛利組合嗎？你在找的是組合占比嗎？

Growth, so growth in revenue.

成長，也就是營收成長。

Growth. I think it was 7% on customer pay and 5% on warranty. They were virtually -- they were real close.

成長。我想客戶自費是7%，保固是5%。兩者幾乎——非常接近。

Yes, they were really close. Those are gross profit numbers that he's quoting in terms of the growth, but they were both pretty close to each other.

是的，真的很接近。他引用的是毛利（gross profit）成長的數字，但兩者彼此都相當接近。

And revenue was [5%] and [4%] customer and warranty, okay?

那營收是客戶自費[5%]、保固[4%]，對嗎？

All right, perfect. Thank you. That's all I have.

好，完美。謝謝。我就這些。

Bret Jordan, Jefferies.

Jefferies 的 Bret Jordan。

Hey, good morning, guys. Could you talk about the impact of negative equity, I guess, on recent volumes? It's getting some press, but is the conversion being impacted as customers come in and realize that their car is going to require a check as opposed to generating a return on the trade?

各位早安。能否談談負資產（negative equity）對近期銷量的影響？這議題最近有些媒體報導，但當客戶進來後發現他們的車在以舊換新時需要補差額支票、而不是在換購中獲得回收價值時，轉換率是否受到影響？

Yes. Great question, Bret. It's funny. That was what we were discussing prior to the call. So negative equity has climbed a little bit. It started to subside, which is nice to see. But remember, this is the advantage of being as far up-funnel as you possibly can be as a retailer, as a new car retailer and as a certified used car retailer, those are the cars that have the most margin, which means the most incentives, right, which allows us to absorb the disequity in their future financing of their new vehicle, okay?

是的。問得很好，Bret。很有趣，我們在電話會議前就在討論這個。所以負資產確實上升了一點。它開始回落，看到這點很好。但請記得，作為零售商、作為新車零售商以及認證中古車零售商，盡可能站在漏斗上游（up-funnel）的優勢在於：那些車款的毛利最高，代表可提供的激勵（incentives）最多，對吧？這讓我們能在客戶未來新車融資中吸收這個資產缺口（disequity），好嗎？

So that's really why you want to be up-funnel is to be able to transfer this equity so then someone doesn't have to write a check. Now most customers still are writing a check. It's around $2,000 is the true amount that they write a check for. But this is where our stores and the traditional network of automotive retail is pretty darn good, okay? Our average disequity that we're focused on in the stores is $2,000 higher than what our AI and Driveway technology approves in the e-commerce platform of driveway.com.

所以你想站在漏斗上游，真正原因就是能把這個權益（equity）轉移過去，讓客戶不必開支票。不過目前大多數客戶仍然會開支票。他們實際開支票的金額大約是2,000美元。但這正是我們門店以及傳統汽車零售網絡相當擅長的地方，好嗎？我們在門店所處理、所關注的平均資產缺口（disequity），比我們在 driveway.com 的電商平台上由 AI 與 Driveway 技術核准的水準高出2,000美元。

So that $2,000 is the benefit of what we get for having some level of negotiation and experts in our stores that are financing cars each and every day. So really, though, does it impact our business? It impacts affordability. I think it's important to remember that our manufacturers still don't have tons of incentives out there. I think we're averaging just under $4,000 a unit, okay?

所以這2,000美元的差距，就是我們因為有一定程度的議價空間、以及門店裡每天都在做車貸的專家而得到的好處。那麼，這真的會影響我們的業務嗎？它會影響可負擔性（affordability）。我認為要記得，我們的製造商目前仍沒有提供大量激勵措施。我想我們平均每台車的激勵略低於4,000美元，好嗎？

At one time, it was as high as 6, okay, or 7. So that's a big number that then can be applied to this equity and allow customers to have a little less down payment and still be able to finance their vehicles, okay? Now anything I talk about is this equity, don't apply that directly to our DFC explanations, okay, because we have extremely disciplined strategies on that.

曾經一度高到6,000美元，甚至7,000美元。所以那是一個很大的數字，可以用來抵消這個權益缺口，讓客戶可以少付一些頭期款，仍然能夠為車輛辦理融資，好嗎？另外，我談到的任何這類權益（equity）議題，請不要直接套用到我們 DFC 的說明上，好嗎？因為我們在那方面有極度嚴謹的策略。

We only have about a 96% check, 96% LTV on our DFC loans, and we're way over 100% as a company as a whole, okay, way over 100%. So we're financing everything we can, but most of that is going to our captive partners, our manufacturer captives or other bank relationships. Hopefully, that helps, Bret.

我們的 DFC 貸款 LTV 只有大約96%（check），而以整個公司來看，我們遠遠超過100%，好嗎，遠超過100%。所以我們會盡可能融資，但其中大部分會流向我們的 captive 夥伴，也就是車廠自營金融公司，或其他銀行合作關係。希望這能幫到你，Bret。

Yes. And just real quick on the geopolitical impact in the UK I think you sort of talked about the US, but -- and maybe it requires sort of looking into April. But given the spike in energy costs over there, you sounded like UK beat expectations in the first quarter, but was there any deterioration in sort of from a consumer standpoint as the quarter has progressed?

是的。另外很快問一下英國的地緣政治影響。我想你剛才談的是美國，但——也許需要看到4月的情況。不過考量那邊能源成本飆升，你聽起來像是英國第一季優於預期，但隨著季度推進，從消費者角度看，有沒有任何惡化？

No. What we've actually found -- and I would say that Neil and the teams have done a nice job. The UK is built differently. It basically is built off March and September, and those months are massive. What they've done a nice job is diversification. They now sell used cars at different times. Those places don't get reregistered, even though you get spikes in those two months in used. They're trying to sell those at all times, which is a good thing.

沒有。我們實際看到的是——我會說 Neil 和團隊做得很好。英國的結構不太一樣。基本上是以3月和9月為主，那兩個月份量非常大。他們做得很好的一點是多元化。他們現在在不同時間點銷售中古車。那些地方不會重新註冊（reregistered），即便中古車在那兩個月份會出現尖峰。他們嘗試在任何時間都賣中古車，這是好事。

Also in their aftersales business, that somehow gets spikes. So now they're starting to balance their portfolio. We're pretty confident on where the UK looks short term, okay? They're able to see out a good 60 to 90 days because 80% of their business is orders, okay?

另外，他們的售後（aftersales）業務也會不知怎地出現尖峰。所以他們現在開始讓投資組合更均衡。我們對英國短期的走勢相當有信心，好嗎？他們能看見未來大約60到90天的情況，因為他們80%的業務是訂單（orders），好嗎？

So they're feeling pretty good about Q2. I got off the phone with Neil yesterday and then the rest of the team the day before. So all things are looking pretty good there and our ability to adjust franchises, to be fair, within a 90-day period, 60, 90-day period and do it at about a $50,000 entry price, basically signage for these brands in the store.

所以他們對第二季感覺相當不錯。我昨天才跟 Neil 通過電話，前一天也跟其他團隊成員聊過。所以那邊各方面看起來都相當不錯；而且我們調整品牌授權（franchises）的能力——坦白說——在90天、60到90天內就能做到，而且進入成本大約5萬美元，基本上就是在店內為這些品牌做招牌（signage）。

It's pretty easy to be able to balance your volumes on the new car side and still maintain your units in operations with some dual-brand on the aftersales side. So hopefully, that gives you a little bit of color, Bret.

因此在新車端要平衡銷量相當容易，同時在售後端透過某種雙品牌（dual-brand）仍能維持營運單位數。希望這能讓你多一些理解，Bret。

Daniela Haigian, Morgan Stanley.

Morgan Stanley 的 Daniela Haigian。

Hi. Thanks for taking the question. Just one quick one. We've covered a lot of the core businesses here, but more strategically, thinking about the influx of Chinese EVs taking share in Europe, how are the unit economics at your BYD stores relative to your other OEM stores in the UK? And what are your views on Chinese OEMs coming to the US either directly or indirectly?

嗨。謝謝讓我提問。我只有一個簡短問題。我們已經談了很多核心業務，但從更策略的角度來看，考量中國電動車在歐洲搶占市占的湧入，你們在英國的 BYD 門店，其單位經濟（unit economics）相較於其他 OEM 門店如何？另外，你們怎麼看中國 OEM 以直接或間接方式進入美國市場？

Great, Daniela. I think it's critical that everyone hears this, okay? Our relationships with the Chinese manufacturers are growing in the United Kingdom, and we cherish those relationships. However, we need to not apply the economics that are happening in Western Europe over Canada or the United States, okay? And here's the reason why.

很好，Daniela。我認為讓大家聽到這點很關鍵，好嗎？我們與中國製造商在英國的合作關係正在成長，我們也很珍視這些關係。不過，我們不應把西歐正在發生的經濟性（economics）套用到加拿大或美國，好嗎？原因如下。

You heard me talk about this idea that Chinese manufacturers are coming into the United Kingdom. They now have about 12% market share, okay? It's not happening from EVs. It's happening from ICE engines and hybrid engines, okay? The EVs that were brought in by BYD and MG 2.5, 3 years ago, they virtually sold no cars.

你剛才聽我談到中國製造商進入英國這個概念。他們現在大約有12%的市占率，好嗎？這並不是靠電動車（EV）發生的。而是靠燃油引擎（ICE）與油電混合引擎，好嗎？BYD 和 MG 在2.5到3年前導入的電動車，幾乎沒有賣出任何車。

It was less than 0.5% market share, okay? It wasn't until about a year ago that they started to bring in plug-ins and hybrids and ICE engines until they gain market share, okay? And that's because of affordability, okay? So important to remember that, okay? Remember this also. In Canada, they've now decided that they're going to bring 50,000 vehicles into Canada as well.

市占率不到 0.5%，好嗎？直到大約一年前，他們才開始導入插電式與油電混合車以及 ICE 內燃機車款，以便取得市占率，好嗎？而這是因為可負擔性，好嗎？所以務必記住這一點，好嗎？也請記住這個。在加拿大，他們現在也已決定要把 50,000 輛車引進加拿大。

That authorization by the federal government is authorized for all electrified vehicles, not just BEVs, okay? So remember that as well. In those areas, they do have the ability to take some market share if pricing allows it and if tariffs keep that in an advantageous spot, okay? Here's the problem.

聯邦政府的那項授權涵蓋所有電動化車輛，不只是 BEV（純電動車），好嗎？所以也請記住這一點。在那些地區，如果定價允許、且關稅讓它維持在有利位置，他們確實有能力拿到一些市占率，好嗎？問題在這裡。

The Chinese manufacturers in Canada, which is the most likely scenario, how they're going to look at things in the United States, have decided to use a dealer network in Canada, okay? They've also decided that the network is going to be fairly lean initially, okay, and that it's going to be exclusive stores. Here that? Exclusive stores, okay?

在加拿大的中國製造商——這也是他們在美國最可能採取的情境——已決定在加拿大採用經銷商網路，好嗎？他們也決定一開始網路會相當精簡，好嗎，而且會是專屬門市。聽到了嗎？專屬門市，好嗎？

In the United Kingdom, our Chinese brands, 14 out of 15 are not exclusive, okay? They're sitting on the same showroom with Ford stores and Stellantis stores and Renault stores that have a units-in operation base, okay, in aftersales that allows those stores to have incremental gross profit that helps the stores profitably, okay?

在英國，我們的中國品牌中，15 個裡有 14 個不是專屬門市，好嗎？它們與 Ford 門市、Stellantis 門市、Renault 門市在同一個展示間，這些門市有在用車保有量（units-in-operation）的基礎，好嗎，在售後服務方面能讓這些門市取得增量毛利，進而幫助門市獲利，好嗎？

If we were to have to have opened stores independently, okay, even in the United Kingdom, those stores would not be profitable. Why? Because 60% of our profits come from aftersales, okay? And there is no units-in-operations built for the next 5 to 10 years, okay? So when you think about Canada or the United States, you've got to think about the dealer network and how is it going to be designed.

如果我們必須獨立開設門市，好嗎，即使在英國，那些門市也不會獲利。為什麼？因為我們 60% 的利潤來自售後服務，好嗎？而在未來 5 到 10 年內，並沒有建立起用車保有量（units-in-operation）的基礎，好嗎？所以當你思考加拿大或美國時，你必須思考經銷商網路，以及它將如何設計。

Also remember that in Canada, real estate is hyper, hyper expensive. We may have some facilities that have some vacancy and it may make sense to create some partnerships in Canada. We may have the same thing in the United States. We'll have to see what their strategies are. But if we're talking about 50% to 100% tariffs in Canada, the price advantage on like-for-like cars in the United Kingdom is somewhere around 7% to 8%, okay? And on the BEV, there is zero price advantage, okay, at this stage in the United Kingdom, okay?

也請記住，在加拿大，不動產非常、非常昂貴。我們可能有一些設施有空置，或許在加拿大建立一些合作夥伴關係是合理的。在美國也可能有同樣的情況。我們得看看他們的策略是什麼。但如果我們談的是加拿大 50% 到 100% 的關稅，那麼在英國，同級車款的價格優勢大約在 7% 到 8% 左右，好嗎？而在 BEV（純電動車）方面，現階段在英國是完全沒有價格優勢的，好嗎？

So I don't -- it's difficult to overlay. And I think that for us, it was easy to be a pioneer in the United Kingdom. But being a pioneer in the United States or in Canada, when you're opening an exclusive facility and that facility could cost $10 million or $15 million, the pioneers are probably going to get shot and the settlers are going to be the ones that get rich, and we may take a little bit of a wait-and-see approach on that.

所以我不——這很難直接套用比較。我認為對我們來說，在英國當先行者很容易。但在美國或加拿大當先行者，當你要開一家專屬設施，而那個設施可能要花 1,000 萬或 1,500 萬美元時，先行者很可能會先被打倒，真正賺到錢的是後來的定居者；我們可能會採取稍微觀望一下的做法。

Okay. Hopefully, that helps. Oh, you asked about margins as well. The margins on those vehicles are very similar to our mainstream margins in the United Kingdom.

好的。希望這有幫助。喔，你也問到毛利率。那些車的毛利率與我們在英國的主流毛利率非常相近。

All right. Thanks, Bryan. I appreciate that.

好。謝謝你，Bryan。我很感謝。

You bet, Daniela. Thanks for the question.

不客氣，Daniela。謝謝你的提問。

Mark Jordan, Goldman Sachs.

Mark Jordan，高盛。

Hey, thank you very much for squeezing me in here. I'll just do one quick one on used retail. Looking through the slide deck here, it looks like the average selling prices for core and Value Autos increased nicely both year-over-year and quarter-over-quarter, but prices for CPO vehicles declined. Can you talk about what drove the decline there? Maybe was it a mix or something else that drove that?

嗨，非常感謝讓我插進來。我就快速問一個關於二手零售的問題。我看了這份簡報，核心（core）與 Value Autos 的平均售價（ASP）不論年增或季增都上升得不錯，但 CPO（原廠認證中古車）的價格卻下滑。你能談談是什麼導致那邊下滑嗎？可能是產品組合，或是其他因素造成的嗎？

Sure, Mark. I actually think it's what one of the other analysts had asked about, which is the availability of those cars is becoming easier, okay? -- especially remember, those vehicles were driven off a 13 million, 14 million SAAR during COVID.

當然可以，Mark。我其實認為這就是另一位分析師問到的：那些車的供給變得更容易取得了，好嗎？——尤其要記得，那些車是在 COVID 期間 1,300 萬、1,400 萬 SAAR（季調年率）水準下所帶動的。

So we're starting to get some units back into operation and the availability of those. So we're excited to see that happen. The other thing that can drive ASPs on certified vehicles is incentives, okay? So I think when you start to see incentives come up, that drives the late model vehicles down accordingly.

所以我們開始看到一些車輛回到用車保有量（units-in-operation）中，這些車的可得性也隨之提升。我們很高興看到這件事發生。另外一個會影響認證車 ASP 的因素是促銷（incentives），好嗎？所以我認為當你開始看到促銷增加時，就會相應地把較新年份車款的價格往下帶。

Thank you very much.

非常感謝。

Thanks, Mark.

謝謝你，Mark。

Thank you. We have reached the end of our question-and-answer session. I would now like to turn the floor back over to Bryan DeBoer for closing comments.

謝謝。我們的問答環節到此結束。我現在想把時間交回給 Bryan DeBoer 做結語。

Thanks for your questions today. Thanks for joining us, and we look forward to seeing you on our Lithia & Driveway second quarter call in July. Bye-bye, everyone.

感謝大家今天的提問。謝謝各位參與，我們期待在 7 月的 Lithia & Driveway 第二季電話會議上再見。各位再見。

Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. Please disconnect your lines at this time, and enjoy the rest of your day.

各位女士、先生，感謝各位的參與。今天的電話會議到此結束。請各位現在掛斷電話線，祝各位今天剩下的時間愉快。