Lithia & Driveway (LAD) Reports Record Q1 Revenue and Dividend Increase

Lithia & Driveway Reports Q1 2023 Revenue Increase and Dividend Hike, Highlighting Strong Business Model and Commitment to Shareholder Value.

Dividends

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.

Q1 Performance Highlights

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%

Corporate Development

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.

Balance Sheet Update

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.

Dividend Payment

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.

Members of LevelFields received the alert of this event on April 19, 5:20 AM ET

Join LevelFields now to be the first to know about events that affect stock prices and uncover unique investment opportunities. Choose from events, view price reactions, and set event alerts with our AI-powered platform. Don't miss out on daily opportunities from 6,300 companies monitored 24/7. Act on facts, not opinions,and let LevelFields help you become a better trader.

Join LevelFields now to be the first to know about events that affect stock prices and uncover unique investment opportunities. Choose from events, view price reactions, and set event alerts with our AI-powered platform. Don't miss out on daily opportunities from 6,300 companies monitored 24/7. Act on facts, not opinions, and let LevelFields help you become a better trader.

Free Trial: Signup for 1 Free Alert Per Week

Add your email to get alerts & the report.

Get 1 free alert per week via email

Upgrade if you want more or platform access

We'll also send you a free report

or Click Here to get full access now

By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. View our Privacy Policy for more information.