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Sep 30, 2023
Lithia Motors Q3 2023 Earnings Report
Lithia Motors reported record revenue, but experienced a decrease in net income and earnings per share compared to the same quarter last year.
Key Takeaways
Lithia & Driveway (LAD) reported record third quarter revenue of $8.3 billion, a 13% increase year-over-year. However, net income attributable to LAD per diluted share decreased by 21% to $9.46, and adjusted net income per diluted share decreased by 17% to $9.25. The company acquired four stores and divested four stores during the quarter.
Revenues increased 13% to $8.3 billion.
New and used unit growth was 18% and 9%, respectively.
Total vehicle gross profit per unit decreased to $5,218, down $930.
Service, body, and parts revenues increased 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
The report contains forward-looking statements regarding future market conditions, business strategy, network growth, Driveway's performance, capital allocations, and financial condition. These statements are subject to risks and uncertainties.
Positive Outlook
- Future market conditions, including anticipated car and other sales levels and the supply of inventory
- Our business strategy and plans, including achieving our 2025 Plan and related targets
- The growth, expansion, make-up and success of our network, including our finding accretive acquisitions and acquiring additional stores
- Annualized revenues from acquired stores
- The growth and performance of our Driveway e-commerce home solution and Driveway Finance Corporation (DFC), their synergies and other impacts on our business and our ability to meet Driveway and DFC-related targets
Challenges Ahead
- Future national and local economic and financial conditions, including as a result of regional or global public health issues, inflation and governmental programs, and spending
- 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