Carvana Co. (NYSE:CVNA) Q4 2019 Earnings Conference Call - Final Transcript
Feb 26, 2020 • 05:30 pm ET
vehicle production capacity. We added our sixth and seventh inspection and reconditioning centers near Cleveland and Nashville and began construction on our eighth inspection and reconditioning center near Charlotte, North Carolina which opened this week.
Our goal is to end 2020 with more than 500,000 units of annual production capacity at full utilization. We are squarely focused on achieving our long-term goal of 2 million plus units and we plan to continue to maintain a healthy pipeline of future IRCs to support our growth. 2019 was an outstanding year for our finance platform. We introduced our first auto loan securitization in the first quarter and successfully executed three more securitizations. Further expanding our investor base and recognizing additional gains.
For the full year 2019, we increased finance GPU by $308 to $962 compared to $654 in 2018. We are excited about our progress and expect to make continue gains in our finance program over time. Beginning in 2020, we plan to transition to a two shelf securitization program from a single shelf in 2019. Our transition for two shelf is a valuable step forward for our securitization program that we believe will unlock an expanded investor base, greater liquidity, more efficient capital structures, and lower cost of funds over-time. We ended the year with $460 million in committed liquidity resources and held an additional $67 million of real estate and securities on our balance sheet. As part of the transition to a two shelf securitization program, we also held an incremental $110 million of loans at the end of the year that we plan to sell in Q1 and we closed two new revolving facilities with capacity of up to $1 billion to finance loans prior to future securitizations. As we look forward to 2020, we expect another year of significant growth in retail units and revenue, increased GPU and improved EBITDA margin. Our outlook for retail units sold is 255,000 units to 265,000 units for the year, an increase from 177,549 in 2019.
Our outlook for total revenue is $5.6 billion to $5.8 billion, an increase from $3.94 billion in 2019. We expect GPU to increase to $3,200, to $3,400 reflecting gains across all parts of the transaction and EBITDA margin to improve to minus 1.5% to minus 3.5% reflecting gains in GPU and SG&A leverage. Since becoming a public company nearly three years ago, we have made tremendous progress across all aspects of the business. Since 2016, we have grown revenue by 10 times. Increased gross profit per car sold by more than $1,800 reduced SG&A expense per car sold by more than $1,400. All while providing exceptional customer experiences and building a large and rapidly growing offering of buying cars from customers. We've made significant progress toward achieving our financial goals and are excited about 2020.
Thank you for your time. We will now take questions.