Summary
Carvana Co. (CVNA) reported its third quarter 2022 financial results, showing a significant increase in total assets to $9.62 billion from $7.02 billion at the end of 2021, largely driven by the acquisition of ADESA. However, this growth came with a substantial increase in total liabilities to $9.25 billion from $6.49 billion. The company's net sales and operating revenues for the quarter were $3.39 billion, a slight decrease from $3.48 billion in the prior year, while the net loss attributable to Carvana Co. widened significantly to $283 million from $32 million in the same period of 2021. This performance was impacted by macroeconomic headwinds, including rising interest rates and inflation, which reduced vehicle affordability and led to fewer retail unit sales, although the average selling price per retail unit increased.
Financial Highlights
42 data points| Revenue | $3.39B |
| Cost of Revenue | $3.03B |
| Gross Profit | $359.00M |
| SG&A Expenses | $656.00M |
| Interest Expense | $153.00M |
| Net Income | -$283.00M |
| EPS (Basic) | $-2.67 |
| EPS (Diluted) | $-2.67 |
| Shares Outstanding (Basic) | 105.86M |
Key Highlights
- 1Total assets increased significantly to $9.62 billion, driven by the acquisition of ADESA, while total liabilities also rose substantially to $9.25 billion.
- 2Net sales and operating revenues for the third quarter decreased by 2.7% to $3.39 billion, compared to $3.48 billion in the prior year period.
- 3The company reported a net loss attributable to Carvana Co. of $283 million for the third quarter, a substantial increase from a net loss of $32 million in the same period of 2021.
- 4Retail vehicle sales decreased by 6.0% to $2.49 billion, primarily due to a 8.4% decline in retail unit sales, influenced by macroeconomic factors like rising interest rates and inflation.
- 5Wholesale sales and revenues increased by 26.3% to $697 million, boosted by the ADESA acquisition, which contributed significantly to wholesale marketplace units sold and revenue.
- 6Gross profit decreased by 31.4% to $359 million, with retail vehicle gross profit per unit declining by 36.1% due to higher acquisition, reconditioning, and transport costs.
- 7Interest expense more than tripled to $153 million from $48 million, reflecting increased debt from recent note issuances and sale-leaseback financing.