Lithia & Driveway Reports Q1 2023 Revenue Increase and Dividend Hike, Highlighting Strong Business Model and Commitment to Shareholder Value.
Lithia & Driveway (LAD), a leading provider of automotive services, reported its highest first-quarter revenue in company history. In the first quarter of 2023, LAD's revenue increased by 4% to $7.0 billion, up from $6.7 billion in the same period of 2022. Despite the growth in revenue, LAD experienced a 28% decrease in net income attributable to LAD per diluted share, which was $8.30 compared to $11.55 in the first quarter of 2022. However, LAD's adjusted net income attributable to LAD per diluted share was $8.44, which was a 29% decrease compared to $11.96 in the same period of 2022.
Revenues increased by 4%
New and used unit growth was 4% and 6%, respectively
Total vehicle gross profit per unit was $5,585, down $1,240
Driveway had over 2.4 million monthly unique visitors in the quarter, and over 2.7 million in March alone
Driveway Finance Corporation (DFC) penetration rate rose to over 14% in Q1, originating nearly $630 million in loans
Service, body, and parts revenues increased by 17%
Adjusted SG&A as a percentage of gross profit was 62.7%
During the first quarter of 2023, LAD acquired a total of 37 locations, which are expected to generate over $2 billion in annualized revenues, and divested a single store, which generated $46 million in the past year. LAD also entered the United Kingdom with the acquisition of the Jardine Motors Group and acquired Acura of Thornhill located in North Toronto. Since announcing the 2025 Plan in July 2020, LAD has acquired a total of $16 billion in annualized revenues.
LAD ended the first quarter of 2023 with approximately $1.4 billion in cash and availability on our revolving lines of credit. In addition, unfinanced real estate could provide additional liquidity of approximately $0.5 billion.
LAD's Board of Directors approved a dividend increase to $0.50 per share related to the first quarter of 2023 financial results. The dividend is expected to be paid on May 26, 2023, to shareholders of record on May 12, 2023. This announcement marks the continuation of LAD's commitment to returning value to its shareholders.
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