Debt Reduction and Financial Stability
The company reduced debt by $145 million, which included $95 million in floor plan debt and $47 million in mortgage debt, following the sale of dealerships. This transaction significantly deleveraged the balance sheet.
Improved Gross Profit Margins
Gross profit margins increased across all product lines, with total gross profit margin reaching 26% in Q1 2025 compared to 19% in Q4 2024. Gross profit per unit sold also increased by 39%.
Increase in New and Used Unit Sales
Despite divestitures, new unit sales increased by 18% and used unit sales increased by 19% in Q1 2025 compared to Q4 2024.
SG&A Expenses Decrease
SG&A expenses decreased to $39 million from $49 million in the prior year period, driven by reduced overhead personnel and marketing expenses from operating fewer stores.
Increase in Gross Profit
Gross profit for Q1 2025 was $44 million, an increase of $6 million compared to the prior year period.