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Jun 30, 2023
Lithia Motors Q2 2023 Earnings Report
Reported highest second quarter revenue in company history, but earnings per share decreased.
Key Takeaways
Lithia & Driveway reported a 12% increase in revenue, reaching $8.1 billion, the highest in the company's history for the second quarter. However, diluted EPS decreased by 7% to $10.78, and adjusted diluted EPS decreased by 10% to $10.91. The company acquired 14 locations expected to generate $1.5 billion in annualized revenues and divested three stores.
Revenues increased by 12%.
New vehicle unit growth was 22%, while used vehicle unit sales decreased by 1%.
Total vehicle gross profit per unit decreased by $853 to $5,710.
Service, body, and parts revenues increased by 18%.
Lithia Motors
Lithia Motors
Lithia Motors Revenue by Segment
Revenue by Segment
New Vehicle Retail Revenue
CapyFin.comUsed Vehicle Retail Revenue
CapyFin.comUsed Vehicle Wholesale Revenue
CapyFin.comFinance and Insurance Revenue
CapyFin.comAftersales Revenue
CapyFin.comFleet and Other Revenue
CapyFin.com Forward Guidance
Lithia & Driveway is focused on profitably consolidating the largest retail sector globally by providing personal transportation solutions. They acquired 14 locations across the mid-Atlantic and southeast regions of the United States, expected to generate nearly $1.5 billion in annualized revenues.
Positive Outlook
- Strong performance across all business lines.
- Demonstrated strong operating discipline.
- Commitment to improving operating results through a relentless focus on high performance.
- Continue acquiring stores domestically and abroad.
- Well capitalized and free cash flow generation gives flexibility to deliver on strategy.
Challenges Ahead
- Future market conditions, including anticipated car and other sales levels and the supply of inventory
- The market for dealerships, including the availability of stores to us for an acceptable price
- Changes in customer demand, our relationship with, and the financial and operational stability of, OEMs and other suppliers
- Changes in the competitive landscape, including through technology and our ability to deliver new products, services and customer experiences and a portfolio of in-demand and available vehicles
- Risks associated with our indebtedness, including available borrowing capacity, interest rates, compliance with financial covenants and ability to refinance or repay indebtedness on favorable terms
Revenue & Expenses
Visualization of income flow from segment revenue to net income