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Sep 30, 2024

Lithia Motors Q3 2024 Earnings Report

Lithia Motors reported record revenue and profitability in Financing Operations, demonstrating growth and operational efficiency.

Key Takeaways

Lithia & Driveway (LAD) reported record third-quarter revenue of $9.2 billion, an 11% increase year-over-year. Diluted earnings per share attributable to LAD was $7.80, a decrease of 18% from $9.46 in the same period of 2023. The company's financing operations continued to be profitable.

Total revenues increased 11% compared to the third quarter of 2023.

Aftersales gross profit increased 6.3% on a same-store basis.

Financing operations continued profitability with quarterly income of $1 million.

Repurchased 0.7% of outstanding shares.

Total Revenue
$9.22B
Previous year: $8.28B
+11.4%
EPS
$8.21
Previous year: $9.25
-11.2%
New vehicle avg. price
$46.6K
Previous year: $47.3K
-1.3%
Used vehicle avg. price
$27.1K
Previous year: $29.6K
-8.3%
New vehicle units sold
94.96K
Previous year: 82.19K
+15.5%
Gross Profit
$1.43B
Previous year: $1.37B
+4.3%
Cash and Equivalents
$360M
Previous year: $256M
+40.3%
Free Cash Flow
$217M
Previous year: -$179M
-221.2%
Total Assets
$23.3B
Previous year: $18.3B
+27.3%

Lithia Motors

Lithia Motors

Lithia Motors Revenue by Segment

Lithia Motors Revenue by Geographic Location

Forward Guidance

The document contains forward-looking statements regarding future market conditions, business strategies, network growth, and financial targets. These statements are subject to risks and uncertainties, and actual results may differ materially.

Positive Outlook

  • Future market conditions, including anticipated car and other sales levels and the supply of inventory
  • Our business strategy and plans, including our achieving our long-term EPS and other financial targets
  • The growth, expansion, make-up and success of our network, including our finding accretive acquisitions that meet our target valuations and acquiring additional stores
  • Annualized revenues from acquired stores or achieving target returns
  • 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