Lithia Reports Record Second Quarter 2018 Results, Increases Revenue 26%

Declares Dividend of $0.29 Per Share for Second Quarter

MEDFORD, Ore.--()--Lithia Motors, Inc. (NYSE: LAD) today reported the highest second quarter revenue and earnings per share in company history.

Second quarter 2018 revenue increased 26% to $3.1 billion from $2.5 billion in the second quarter of 2017.

Second quarter 2018 net income per diluted share was $2.44, a 15% increase over $2.12 per diluted share reported in the second quarter of 2017. Adjusted second quarter 2018 net income per diluted share was $2.52, a 11% increase compared to adjusted net income of $2.28 per diluted share in the same period of 2017. Second quarter 2018 net income was $61 million, a 14% increase over $53 million reported in the second quarter of 2017. Adjusted second quarter 2018 net income was $63 million, a 10% increase compared to adjusted net income of $57 million for the same period of 2017.

As shown in the attached non-GAAP reconciliation tables, the 2018 second quarter adjusted results exclude a $0.08 net non-core charge related to acquisition expenses and storm insurance reserves partially offset by a tax attribute. The 2017 second quarter adjusted results exclude a $0.16 net non-core charge related to acquisition expenses and hail storm insurance reserves.

Second Quarter-over-Quarter Operating Highlights:

  • Online traffic up 35% over prior year
  • Total retail units sold increased 21%
  • Service, body and parts sales increased 27%
  • Total same store sales increased 3%
  • New vehicle same store sales were flat
  • Used vehicle retail same store sales increased 7%
  • Same store F&I per unit was $1,305
  • Service, body and parts same store sales increased 3%

"Our stores generated strong revenue growth, both overall and on a same store basis," said Bryan DeBoer, President and CEO. "Total gross profit increased over 20% and our service operations performed well. We continue to attack the over $250 million in dry powder available in both revenue and cost management as operations season and stabilize. At the same time, we are targeting further acquisition growth and continue to invest in innovation and digital initiatives for the future."

For the first six months of 2018, revenues increased 22% to $5.8 billion, compared to $4.7 billion in the first six months of 2017.

Net income for the first six months of 2018 was $4.50 per diluted share, compared to $4.13 per diluted share for the similar period in 2017. Adjusted net income per diluted share for the first six months of 2018 increased 13% to $4.59 from $4.06 for the first six months of 2017.

Corporate Development

As previously announced, during the second quarter, we added Broadway Ford in Idaho Falls, Idaho and Buhler Ford in Eatontown, New Jersey and divested a Mitsubishi franchise in Fresno, California. In July, we opened a Chrysler Jeep Dodge location in Calallen, Texas, separated a Subaru franchise into a stand-alone facility in Utica, New York and divested an Audi franchise in Monroeville, Pennsylvania.

"Our recent actions further optimize our nationwide network of service and delivery points," said DeBoer. "We remain focused on purchasing and improving strong franchises that underperform their potential, while developing new ways to meet our consumers' personal transportation needs. Generating substantial revenue growth creates a profit engine that we can invest to accelerate innovation, build out our physical footprint and deliver compelling shareholder returns."

Balance Sheet Update

We ended the second quarter with $30 million in cash and $204 million in availability under our credit facility. Additionally, approximately $297 million of our operating real estate is currently unfinanced, which we estimate could provide $223 million in capital, for total potential liquidity of $457 million.

In June, we executed an amended and restated loan agreement modifying our existing syndicated credit facility. The amended facility includes 13 bank and seven captive finance partners, and provides up to $2.6 billion in total available credit for new vehicles, used vehicles and a working capital facility. The agreement matures in July 2023.

Dividend Payment and Share Repurchases

Our Board of Directors approved a dividend of $0.29 per share related to second quarter 2018 financial results. We expect to pay the dividend on August 29, 2018 to shareholders of record on August 15, 2018.

Year to date, we have repurchased 677,437 shares at a weighted average price of $99.57 per share. Under our existing $250 million share repurchase authorization, approximately $95 million remains available.

Earnings Outlook

For 2018, we updated our outlook to full year revenues of $11.75 to $12.25 billion and earnings per share of $9.50. Actual results may be affected by items described under Forward-Looking Statements below. Beginning in 2019, we will no longer provide an annual earnings outlook.

Second Quarter Earnings Conference Call and Updated Presentation

The second quarter conference call may be accessed at 11:00 a.m. ET today by telephone at 877-407-8029. An updated presentation highlighting the second quarter 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 one of the largest providers of personal transportation solutions in the United States and is among the fastest growing companies in the Fortune 500 (#294-2018). Consumers can buy, sell and service vehicles digitally or through our 188 coast to coast locations. Our mission statement, Growth Powered by People, drives us to continuously improve and to give back to our communities.

Sites
www.lithiamotors.com
www.lithiainvestorrelations.com
www.lithiacareers.com

Lithia Motors on Facebook
www.facebook.com/LithiaMotors

Lithia Motors on Twitter
http://twitter.com/lithiamotors

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward looking statements include statements regarding our goals, plans, projections and guidance regarding our financial position, results of operations, market position, pending and potential future acquisitions and business strategy, and often contain words such as "project," "outlook," "expect," "anticipate," "intend," "plan," "believe," "estimate," "may," "seek," "would," "should," "likely," "goal," "strategy," "future," "maintain," "continue," "remain," "target" or "will" and similar references to future periods. Examples of forward-looking statements in this press release include, among others, statements regarding:

  • Expected operating results, such as improved store efficiency and performance; achieving a 2018 full year earnings target of $9.50 per diluted share and all projections set forth under the headings "Earnings Outlook";
  • Our ability to improve store performance;
  • Anticipated acquisition opportunities and additions of dealership locations to our portfolio in the future, and our ability to improve earnings and achieve returns on investments;
  • Anticipated revenues from acquired and open point stores; and
  • Anticipated availability of liquidity from our credit facility and unfinanced operating real estate.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events that depend on circumstances that may or may not occur in the future. 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 press release. 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), 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), acts of God or other incidents which may adversely impact our operations and financial performance, government regulations, legislation and others 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, and from time to time in our other filings with the SEC. We urge you to carefully consider this information and not place undue reliance on forward-looking statements. We undertake no duty to update our forward-looking statements, including our earnings outlook, which are made as of the date of this release.

Non-GAAP Financial Measures

This press release and the attached financial tables contain 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 gross profit, adjusted pre-tax margin, EBITDA, adjusted EBITDA, leveraged cash flow 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 thousands except per share data)

 
  Three months ended June 30,   %   Six months ended June 30,   %
Increase Increase
2018   2017 (Decrease) 2018   2017 (Decrease)
Revenues:
New vehicle retail $ 1,726,803 $ 1,384,055 24.8 % $ 3,181,528 $ 2,594,359 22.6 %
Used vehicle retail 804,098 633,635 26.9 1,519,672 1,235,858 23.0
Used vehicle wholesale 85,335 69,512 22.8 161,290 141,015 14.4
Finance and insurance 114,492 94,851 20.7 220,997 181,628 21.7
Service, body and parts 311,407 246,005 26.6 597,104 478,579 24.8
Fleet and other 54,402   38,978   39.6   75,625   71,698   5.5  
Total revenues 3,096,537 2,467,036 25.5 % 5,756,216 4,703,137 22.4 %
Cost of sales:
New vehicle retail 1,625,309 1,303,516 24.7 2,993,087 2,443,702 22.5
Used vehicle retail 716,997 559,129 28.2 1,358,960 1,092,569 24.4
Used vehicle wholesale 83,409 67,800 23.0 158,438 137,786 15.0
Service, body and parts 157,700 123,525 27.7 304,989 242,905 25.6
Fleet and other 52,395   37,795   38.6   71,904   69,252   3.8  
Total cost of sales 2,635,810   2,091,765   26.0   4,887,378   3,986,214   22.6  
Gross profit 460,727 375,271 22.8 % 868,838 716,923 21.2 %
SG&A expense 333,350 257,290 29.6 630,844 500,062 26.2
Depreciation and amortization 18,821   14,031   34.1   35,675   26,770   33.3  
Income from operations 108,556 103,950 4.4 % 202,319 190,091 6.4 %
Floor plan interest expense (15,634 ) (9,332 ) 67.5 (29,168 ) (17,384 ) 67.8
Other interest expense (13,829 ) (7,169 ) 92.9 (25,635 ) (13,840 ) 85.2
Other income (expense), net 1,659   387   NM   3,033   10,232   NM  
Income before income taxes 80,752 87,836 (8.1

)%

150,549 169,099 (11.0 )%
Income tax expense (20,092 ) (34,636 ) (42.0 ) (37,828 ) (65,172 ) (42.0 )
Income tax rate 24.9 % 39.4 %     25.1 % 38.5 %    
Net income $ 60,660   $ 53,200   14.0 % $ 112,721   $ 103,927   8.5 %
 
Diluted net income per share:
Net income per share $ 2.44 $ 2.12 15.1 % $ 4.50 $ 4.13 9.0 %
 
Diluted shares outstanding 24,882 25,106 (0.9

)%

25,028 25,177 (0.6 )%
 

NM - not meaningful

 
Lithia Motors, Inc.

Key Performance Metrics (Unaudited)

 
  Three months ended June 30,   %   Six months ended June 30,   %
Increase Increase
2018   2017 (Decrease) 2018   2017 (Decrease)

Gross margin

New vehicle retail 5.9 % 5.8 % 10 bps 5.9 % 5.8 % 10 bps
Used vehicle retail 10.8 11.8 (100 ) 10.6 11.6 (100 )
Finance and insurance 100.0 100.0 100.0 100.0
Service, body and parts 49.4 49.8 (40 ) 48.9 49.2 (30 )
Gross profit margin 14.9 15.2 (30 ) 15.1 15.2 (10 )
 

Unit sales

New vehicle retail 49,027 40,876 19.9 % 90,524 76,492 18.3 %
Used vehicle retail 39,096 32,171 21.5 75,210 62,954 19.5
Total retail units sold 88,123 73,047 20.6 165,734 139,446 18.9
 

Average selling price

New vehicle retail $ 35,221 $ 33,860 4.0 % $ 35,146 $ 33,917 3.6 %
Used vehicle retail 20,567 19,696 4.4 20,206 19,631 2.9
 

Average gross profit per unit

New vehicle retail $ 2,070 $ 1,970 5.1 % $ 2,082 $ 1,970 5.7 %
Used vehicle retail 2,228 2,316 (3.8 ) 2,137 2,276 (6.1 )
Finance and insurance 1,299 1,298 0.1 1,333 1,302 2.4
Total vehicle(1) 3,461 3,444 0.5 3,457 3,434 0.7
 

Revenue mix

New vehicle retail 55.8 % 56.1 % 55.3 % 55.2 %
Used vehicle retail 26.0 25.7 26.4 26.3
Used vehicle wholesale 2.8 2.8 2.8 3.0
Finance and insurance, net 3.7 3.8 3.8 3.9
Service, body and parts 10.1 10.0 10.4 10.2
Fleet and other 1.6 1.6 1.3 1.4
 
  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

2018   2017 2018   2017 2018   2017 2018   2017
SG&A as a % of revenue 10.6 % 10.2 % 10.8 % 10.4 % 10.9 % 10.5 % 11.0 % 10.6 %
SG&A as a % of gross profit 71.3 67.0 72.4 68.6 72.1 68.9 72.6 69.8
Operating profit as a % of revenue 3.7 4.5 3.5 4.2 3.6 4.2 3.5 4.0
Operating profit as a % of gross profit 24.6 29.3 23.6 27.7 23.8 27.4 23.3 26.5
Pretax margin 2.8 3.8 2.6 3.6 2.7 3.5 2.6 3.6
Net profit margin 2.0 2.3 2.0 2.2 2.0 2.2 2.0 2.2
 
(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
2018   2017 (Decrease) 2018   2017 (Decrease)

Revenues

New vehicle retail $ 1,380,947 $ 1,375,444 0.4 % $ 2,563,814 $ 2,576,578 (0.5 )%
Used vehicle retail 673,955 629,198 7.1 1,296,344 1,224,239 5.9
Finance and insurance 95,177 94,244 1.0 185,668 180,322 3.0
Service, body and parts 251,449 243,603 3.2 487,260 472,987 3.0
Total revenues 2,515,454 2,450,671 2.6 4,727,682 4,665,925 1.3
 

Gross profit

New vehicle retail $ 79,141 $ 79,830 (0.9 ) % $ 147,226 $ 148,887 (1.1 )%
Used vehicle retail 76,447 74,102 3.2 142,323 142,359
Finance and insurance 95,177 94,244 1.0 185,668 180,322 3.0
Service, body and parts 124,751 121,368 2.8 240,773 233,025 3.3
Total gross profit 378,843 372,424 1.7 721,509 710,221 1.6
 

Gross margin

New vehicle retail 5.7 % 5.8 % (10 )bps 5.7 % 5.8 % (10 )bps
Used vehicle retail 11.3 11.8 (50 ) 11.0 11.6 (60 )
Finance and insurance 100.0 100.0 100.0 100.0
Service, body and parts 49.6 49.8 (20 ) 49.4 49.3 10
Gross profit margin 15.1 15.2 (10 ) 15.3 15.2 10
 

Unit sales

New vehicle retail 39,619 40,655 (2.5 ) % 73,489 76,031 (3.3 )%
Used vehicle retail 33,328 31,933 4.4 65,005 62,337 4.3
 

Average selling price

New vehicle retail $ 34,856 $ 33,832 3.0 % $ 34,887 $ 33,889 2.9 %
Used vehicle retail 20,222 19,704 2.6 19,942 19,639 1.5
 

Average gross profit per unit

New vehicle retail $ 1,998 $ 1,964 1.7 % $ 2,003 $ 1,958 2.3 %
Used vehicle retail 2,294 2,321 (1.2 ) 2,189 2,284 (4.2 )
Finance and insurance 1,305 1,298 0.5 1,341 1,303 2.9
Total vehicle(1) 3,458 3,442 0.5 3,447 3,431 0.5
(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)

 
  As of
June 30,   December 31,   June 30,
2018 2017 2017

Days Supply(1)

New vehicle inventory 77 69 75
Used vehicle inventory 62 67 60
 
(1)   Days supply calculated based on current inventory levels, excluding in-transit vehicles, and a 30-day historical cost of sales level.
 

Financial covenants

   
Requirement As of June 30, 2018
Current ratio Not less than 1.10 to 1 1.25 to 1
Fixed charge coverage ratio Not less than 1.20 to 1 2.59 to 1
Leverage ratio Not more than 5.00 to 1 3.52 to 1
 
Lithia Motors, Inc.

Condensed Consolidated Balance Sheets (Unaudited)

(In thousands)

 
  June 30, 2018   December 31, 2017
Cash and cash equivalents $ 29,991 $ 57,253
Trade receivables, net 483,995 521,938
Inventories, net 2,333,112 2,132,744
Other current assets 46,231   70,847
Total current assets $ 2,893,329 $ 2,782,782
 
Property and equipment, net 1,232,054 1,185,169
Intangibles 478,065 443,297
Other non-current assets 560,714   271,818
Total assets $ 5,164,162   $ 4,683,066
 
Floor plan notes payable 2,018,068 1,919,026
Other current liabilities 394,143   381,955
Total current liabilities $ 2,412,211 $ 2,300,981
 
Long-term debt 1,295,077 1,028,476
Other long-term liabilities and deferred revenue 296,006   270,391
Total liabilities $ 4,003,294   $ 3,599,848
 
Stockholder's Equity 1,160,868   1,083,218
Total liabilities & stockholders' equity $ 5,164,162   $ 4,683,066
 
Lithia Motors, Inc.

Summarized Cash Flow from Operations (Unaudited)

(In thousands)

  Six months ended June 30,
2018   2017
Net income $ 112,721 $ 103,927
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 35,675 26,770
Stock-based compensation 6,837 5,432
(Gain) loss on disposal of assets (78 ) 256
Loss on sale of franchise 380
Deferred income taxes 345 (1,156 )
(Increase) decrease:
Trade receivables, net 47,915 70,908
Inventories (35,530 ) (36,078 )
Other assets 20,588 479
Increase (decrease):
Floor plan notes payable, net 15,056 1,330
Trade payables 2,929 414
Accrued liabilities 5,463 (3,684 )
Other long-term liabilities and deferred revenue 24,030   9,957  
Net cash provided by operating activities $ 236,331   $ 178,555  
 
Lithia Motors, Inc.

Reconciliation of Non-GAAP Cash Flow from Operations (Unaudited)

(In thousands)

 
  Six months ended June 30,

Net cash provided by operating activities

2018   2017
As reported $ 236,331 $ 178,555
Floor plan notes payable, non-trade, net 85,763 (32,124 )
Less: Borrowings on floor plan notes payable, non-trade associated with acquired new vehicle inventory (120,899 )  
Adjusted $ 201,195   $ 146,431  
 
Lithia Motors, Inc.

Reconciliation of Certain Non-GAAP Financial Measures (Unaudited)

(In thousands, except for per share data)

 
  Three Months Ended June 30, 2018

As
reported

 

Insurance
reserves

 

Acquisition
expenses

 

Tax
attributes

  Adjusted
Selling, general and administrative $ 333,350 $ (1,490 ) $ (3,251 ) $ $ 328,609
 
Income from operations 108,556 1,490 3,251 113,297
 
Income before income taxes $ 80,752 $ 1,490 $ 3,251 $ $ 85,493
Income tax benefit (expense) (20,092 ) (389 ) (853 ) (1,409 ) (22,743 )
Net income $ 60,660   $ 1,101   $ 2,398   $ (1,409 ) $ 62,750  
 
Diluted earnings per share $ 2.44 $ 0.04 $ 0.10 $ (0.06 ) $ 2.52
Diluted share count 24,882
 
  Three Months Ended June 30, 2017

As
reported

 

Insurance
reserves

 

Acquisition
expenses

  Adjusted
Selling, general and administrative $ 257,290 $ (3,878 ) $ (2,137 ) $ 251,275
 
Income from operations 103,950 3,878 2,137 109,965
 
Income before income taxes $ 87,836 $ 3,878 $ 2,137 $ 93,851
Income tax expense (34,636 ) (1,231 ) (821 ) (36,688 )
Net income $ 53,200   $ 2,647   $ 1,316   $ 57,163  
 
Diluted earnings per share $ 2.12 $ 0.11 $ 0.05 $ 2.28
Diluted share count 25,106
 
Lithia Motors, Inc.

Reconciliation of Certain Non-GAAP Financial Measures (Unaudited)

(In thousands, except for per share data)

 
  Six Months Ended June 30, 2018

As
reported

 

Insurance
reserves

 

Acquisition
expenses

 

Tax
attributes

  Adjusted
Selling, general and administrative $ 630,844 $ (1,490 ) $ (3,251 ) $ $ 626,103
 
Income from operations 202,319 1,490 3,251 207,060
 
Income before income taxes $ 150,549 $ 1,490 $ 3,251 $ $ 155,290
Income tax benefit (expense) (37,828 ) (389 ) (853 ) (1,409 ) (40,479 )
Net income $ 112,721   $ 1,101   $ 2,398   $ (1,409 ) $ 114,811  
 
Diluted earnings per share $ 4.50 0.04 $ 0.11 $ (0.06 ) $ 4.59
Diluted share count 25,028
 
  Six Months Ended June 30, 2017

As
reported

 

Insurance
reserves

 

Acquisition
expenses

 

OEM
settlement

  Adjusted
Selling, general and administrative $ 500,062 $ (3,878 ) $ (2,137 ) $ $ 494,047
 
Income from operations 190,091 3,878 2,137 196,106
 
Other income (expense), net 10,232 (9,111 ) 1,121
 
Income before income taxes $ 169,099 $ 3,878 $ 2,137 $ (9,111 ) $ 166,003
Income tax benefit (expense) (65,172 ) (1,231 ) (821 ) 3,423   (63,801 )
Net income $ 103,927   $ 2,647   $ 1,316   $ (5,688 ) $ 102,202  
 
Diluted earnings per share $ 4.13 $ 0.11 $ 0.05 $ (0.23 ) $ 4.06
Diluted share count 25,177
 
Lithia Motors, Inc.

Adjusted EBITDA and Leveraged Free Cash Flow (Unaudited)

 
 

Three months ended
June 30,

  %  

Six months ended
June 30,

  %
Increase Increase
2018   2017 (Decrease) 2018   2017 (Decrease)

EBITDA and Adjusted EBITDA

Net income $ 60,660 $ 53,200 14.0 % $ 112,721 $ 103,927 8.5 %
Other interest expense 13,829 7,169 92.9 25,635 13,840 85.2
Income tax expense 20,092 34,636 (42.0 ) 37,828 65,172 (42.0 )
Depreciation and amortization 18,821   14,031   34.1 35,675   26,770   33.3
EBITDA $ 113,402   $ 109,036   4.0 % $ 211,859   $ 209,709   1.0 %
 
Other adjustments:
Less: used vehicle line of credit interest $ (22 ) $ (1,131 ) (98.1 ) $ (535 ) $ (2,157 ) (75.2 )
Add: insurance reserve 1,490 3,878 (61.6 ) 1,490 3,878 (61.6 )
Add: acquisition expenses 3,251 2,137 52.1 3,251 2,137 52.1
Less: OEM legal settlements     NM   (9,111 ) (100.0 )
Adjusted EBITDA $ 118,121   $ 113,920   3.7 % $ 216,065   $ 204,456   5.7 %
 

Leveraged EBITDA

Adjusted EBITDA $ 118,121 $ 113,920 3.7 % $ 216,065 $ 204,456 5.7 %
Less: Capital expenditures (30,369 ) (16,227 ) 87.2 (72,373 ) (32,266 ) 124.3
Leveraged EBITDA $ 87,752   $ 97,693   (10.2

)%

$ 143,692   $ 172,190   (16.6

)%

Contacts

Lithia Motors, Inc.
John North, 541-618-5748
Senior Vice President and Chief Financial Officer

Contacts

Lithia Motors, Inc.
John North, 541-618-5748
Senior Vice President and Chief Financial Officer