Lithia Motors Q3 2023 Earnings Report
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
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