Lithia Motors Reports Record Q1 Revenue

By Tamara Parker • Wednesday, April 24 10:21 • Permanent Link

Lithia & Driveway (NYSE: LAD) has reported a record first quarter revenue of $8.6 billion, marking a significant 23% increase from the first quarter of 2023 when the revenue was $7.0 billion. However, the net income attributable to LAD per diluted share saw a 29% decrease, dropping to $5.89 from $8.30 in the first quarter of 2023. When considering adjusted net income, the decrease was 28%, with adjusted first quarter 2024 net income attributable to LAD per diluted share at $6.11 compared to $8.44 in the same period of 2023.

The first quarter 2024 net income was $165 million, down 28% from the $230 million reported in the same period of 2023. Adjusted first quarter 2024 net income was $171 million, a 27% decrease compared to adjusted net income of $233 million for the same period of 2023.

Total revenues increased by 23%, with new vehicle same store units growing by 3.6%. Total vehicle gross profit per unit was reported at $4,346, down by $1,239. Greencars monthly unique visitors (MUVs) saw a substantial 71% increase, and Driveway Finance Corporation (DFC) originated approximately $493 million in loans. Service, body, and parts revenues also saw a healthy 24% increase.

LAD ended the first quarter with approximately $1.3 billion in cash and cash equivalents, marketable securities, and availability on revolving lines of credit, with the potential for additional liquidity of approximately $0.3 billion from unfinanced real estate.

The board of directors approved a dividend of $0.53 per share related to the first quarter 2024 financial results, and during April 2024, LAD repurchased approximately 58,000 shares at a weighted average price of $264.42. There remains approximately $451.7 million available under the current share repurchase authorization.

The company's president and CEO, Bryan DeBoer, stated, “Our model is diversified with our adjacencies maturing and on a path to profitability, as we continue to deliver the best experience for our customers. Responding to market conditions, we are rebalancing our capital allocation from acquisitions toward returns to our shareholders, with the long-term target of delivering $2 in EPS per billion in revenues.”

The market has reacted to these announcements by moving the company's shares -2.8% to a price of $257.0. For more information, read the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.