Lithia & Driveway (LAD) Reports Record First Quarter Revenue of $8.6 billion, 23% Increase

Announces Dividend of $0.53 per Share for First Quarter

MEDFORD, Ore., April 24, 2024 /PRNewswire/ — Lithia & Driveway (NYSE: LAD) today reported the highest first quarter revenue in company history.

First quarter 2024 revenue increased 23% to $8.6 billion from $7.0 billion in the first quarter of 2023.

First quarter 2024 net income attributable to LAD per diluted share was $5.89, a 29% decrease from $8.30 per diluted share reported in the first quarter of 2023. Adjusted first quarter 2024 net income attributable to LAD per diluted share was $6.11, a 28% decrease compared to $8.44 per diluted share in the same period of 2023. Unrealized foreign currency losses negatively impacted earnings per share by $0.15.

First quarter 2024 net income was $165 million, a 28% decrease compared to net income of $230 million in the same period of 2023. Adjusted first quarter 2024 net income was $171 million, a 27% decrease compared to adjusted net income of $233 million for the same period of 2023.

As shown in the attached non-GAAP reconciliation tables, the 2024 first quarter adjusted results exclude a $0.22 per diluted share impact resulting from non-core items, specifically acquisition expenses. The 2023 first quarter adjusted results exclude a $0.14 per diluted share impact resulting from non-core items, including one-time contract buyouts, acquisition expenses, investment loss, and insurance reserves, partially offset by a net gain on the sale of stores.

First Quarter-Over-Quarter Comparisons and First Quarter 2024 Performance Highlights:

  • Total revenues increased 23%
  • New vehicle same store units grew by 3.6 %
  • Total vehicle gross profit per unit of $4,346, down $1,239
  • GreenCars monthly unique visitors (MUVs) increased by 71%
  • Driveway Finance Corporation (DFC) originated approximately $493 million in loans
  • Service, body, and parts revenues increased 24%
  • Driveway and GreenCars burn-rate has been cut in half

“In the first quarter, our teams responded as the industry continued to normalize inventories and profitability. We are committed to driving improvements across our business,” said Bryan DeBoer, President and CEO. “Our model is diversified with our adjacencies maturing and on a path to profitability, as we continue to deliver the best experience for our customers. Responding to market conditions, we are rebalancing our capital allocation from acquisitions toward returns to our shareholders, with the long-term target of delivering $2 in EPS per billion in revenues.”

Corporate Development
During the first quarter, LAD completed the acquisition of Pendragon PLC’s Fleet Management and UK Motor Divisions in the United Kingdom and grew in the North Central region with the purchase of the Carousel Motor Group. Year-to-date, we have acquired over $5.4 billion in annualized revenues.

Balance Sheet Update
LAD ended the first quarter with approximately $1.3 billion in cash and cash equivalents, marketable securities, and availability on our revolving lines of credit. In addition, unfinanced real estate could provide additional liquidity of approximately $0.3 billion.

Dividend Payment and Share Repurchases
The Board of Directors approved a dividend of $0.53 per share related to first quarter 2024 financial results. The dividend is expected to be paid on May 24, 2024 to shareholders of record on May 10, 2024.

During April 2024, we repurchased approximately 58,000 shares at a weighted average price of $264.42. Under the current share repurchase authorization approximately $451.7 million remains available.

New vehicle retail$ 3,261.0$ 3,188.72.3 %
Used vehicle retail2,039.62,148.0(5.0)
Finance and insurance297.7312.7(4.8)
Service, body and parts740.2717.53.2
Total revenues6,639.86,771.1(1.9)
Gross profit
New vehicle retail$ 235.7$ 323.5(27.1) %
Used vehicle retail152.6160.6(5.0)
Finance and insurance297.7312.7(4.8)
Service, body and parts409.7384.46.6
Total gross profit1,094.81,180.3(7.2)
Gross margin
New vehicle retail7.2 %10.1 %(290) bps
Used vehicle retail7.57.5
Finance and insurance100.0100.0
Service, body and parts55.453.6180
Gross profit margin16.517.4(90)
Unit sales
New vehicle retail68,37365,9803.6 %
Used vehicle retail74,71075,928(1.6)
Average selling price
New vehicle retail$ 47,695$ 48,328(1.3) %
Used vehicle retail27,30028,290(3.5)
Average gross profit per unit
New vehicle retail$ 3,448$ 4,903(29.7) %
Used vehicle retail2,0432,116(3.4)
Finance and insurance2,0802,204(5.6)
Total vehicle(1)4,7605,594(14.9)
(1) Includes the sales and gross profit related to new, used retail, used wholesale and finance and insurance and unit sales for new and
used retail
Other Highlights (Unaudited)
Three months ended March 31,
Key Performance by CountryTotal RevenueTotal Gross Profit
United States79.0 %84.5 %
United Kingdom18.2 %13.0 %
Canada2.8 %2.5 %
As of
March 31,December 31,March 31,
Days Supply(1)
New vehicle inventory606551
Used vehicle inventory586453
(1) Days supply calculated based on current inventory levels, including in-transit vehicles, and a 30-day historical cost of sales
Selected Financing Operations Financial Information
Three months ended March 31,
($ in millions)2024(1)2023(1)
Interest margin:
Interest and fee income$ 77.39.0$ 49.38.1
Interest expense(47.8)(5.6)(37.5)(6.2)
Total interest margin$ 29.53.5$ 11.81.9
Lease income22.44.6
Depreciation and amortization(18.0)(2.3)
Lease income, net4.42.3
Selling, general and administrative(10.6)(8.6)
Provision expense(25.0)(2.9)(26.3)(4.3)
Financing operations loss$ (1.7)$ (20.8)
Total average managed finance receivables$ 3,436.6$ 2,461.9
Ending funded managed receivables$ 3,106.3$ 2,247.9
% of ending managed receivables88.1 %84.3 %
(1) Annualized percentage of total average managed finance receivables
Condensed Consolidated Balance Sheets (Unaudited)
(In millions)
March 31, 2024December 31, 2023
Cash, restricted cash, and cash equivalents$ 404.6$ 941.4
Trade receivables, net1,249.31,123.1
Inventories, net5,861.94,753.9
Other current assets217.4136.8
Total current assets$ 7,733.2$ 6,955.2
Property and equipment, net4,502.03,981.4
Finance receivables, net3,412.53,242.3
Other non-current assets1,912.61,120.8
Total assets$ 22,180.0$ 19,632.5
Floor plan notes payable4,962.03,635.5
Other current liabilities1,629.51,296.7
Total current liabilities$ 6,591.5$ 4,932.2
Long-term debt, less current maturities5,662.45,483.7
Non-recourse notes payable, less current maturities1,803.91,671.7
Other long-term liabilities and deferred revenue1,700.61,262.0
Total liabilities$ 15,758.4$ 13,349.6
Redeemable non-controlling interest and equity6,421.66,282.9
Total liabilities, redeemable non-controlling interest, and equity$ 22,180.0$ 19,632.5
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)
Three months ended March 31,
Cash flows from operating activities:20242023
Net income$ 165.0$ 229.6
Adjustments to reconcile net income to net cash used in operating activities127.082.3
Changes in:
Finance receivables, net(173.8)(397.0)
Floor plan notes payable, net327.738.9
Other operating activities29.854.1
Net cash provided by (used in) operating activities292.4(49.0)
Cash flows from investing activities:
Capital expenditures(79.6)(38.9)
Cash paid for acquisitions, net of cash acquired(1,074.4)(387.4)
Proceeds from sales of stores6.422.7
Other investing activities(118.3)(10.3)
Net cash used in investing activities(1,265.9)(413.9)
Cash flows from financing activities:
Net borrowings on floor plan notes payable, non-trade156.1187.6
Net borrowings non-recourse notes payable125.9403.2
Net borrowings (repayments) of other debt and finance lease liabilities201.8(42.1)
Proceeds from issuance of common stock5.76.1
Repurchase of common stock(15.0)(14.4)
Dividends paid(13.8)(11.5)
Other financing activity(15.7)(19.0)
Net cash provided by financing activities445.0509.9
Effect of exchange rate changes on cash and restricted cash(3.0)6.2
Change in cash, restricted cash, and cash equivalents(531.5)53.2
Cash, restricted cash, and cash equivalents at beginning of period972.0271.5
Cash, restricted cash, and cash equivalents at end of period440.5324.7
Reconciliation of Non-GAAP Cash Flow from Operations (Unaudited)
(In millions)
Three months ended March 31,
Net cash provided by operating activities20242023
As reported$ 292.4$ (49.0)
Floor plan notes payable, non-trade, net156.1187.6
Adjust: finance receivables activity173.8397.0
Less: Borrowings on floor plan notes payable, non-trade associated with
acquired new vehicle inventory
Adjusted$ 550.6$ 531.9
Reconciliation of Certain Non-GAAP Financial Measures (Unaudited)
(In millions, except for per share data)
Three Months Ended March 31, 2024
As reportedAcquisition
Selling, general and administrative$ 934.3$ (7.7)$ 926.6
Operating income341.47.7349.1
Income before income taxes220.67.7228.3
Income tax provision(55.6)(1.6)(57.2)
Net income$ 165.0$ 6.1$ 171.1
Net income attributable to non-controlling interests(1.5)(1.5)
Net income attributable to redeemable non-controlling interest(0.9)(0.9)
Net income attributable to LAD$ 162.6$ 6.1$ 168.7
Diluted earnings per share attributable to LAD$ 5.89$ 0.22$ 6.11
Diluted share count27.6
Three Months Ended March 31, 2023
As reportedNet disposal
gain on sale
of stores
Selling, general and administrative$ 764.4$ 7.2$ –$ (0.1)$ (1.3)$ (10.1)$ 760.1
Operating income379.0(7.2)0.11.310.1383.3
Other income (expense), net2.00.52.5
Income before income taxes314.3(7.2)
Income tax (provision) benefit(84.7)1.9(0.2)(2.7)(85.7)
Net income$ 229.6$ (5.3)$ 0.5$ 0.1$ 1.1$ 7.4$ 233.4
Net income attributable to non-
controlling interests
Net income attributable to
redeemable non-controlling interest
Net income attributable to LAD$ 228.7$ (5.3)$ 0.5$ 0.1$ 1.1$ 7.4$ 232.5
Diluted earnings per share
attributable to LAD
$ 8.30$ (0.19)$ 0.02$ –$ 0.04$ 0.27$ 8.44
Diluted share count27.5
Adjusted EBITDA and Net Debt to Adjusted EBITDA (Unaudited)
(In millions)
Three months ended
March 31,
EBITDA and Adjusted EBITDA
Net income$ 165.0$ 229.6(28.1) %
Flooring interest expense60.727.7119.1
Other interest expense63.639.063.1
Financing operations interest expense47.837.527.5
Income tax expense55.684.7(34.4)
Depreciation and amortization57.847.322.2
Financing operations depreciation expense18.02.3682.6 %
EBITDA$ 468.5$ 468.10.1 %
Other adjustments:
Less: flooring interest expense$ (60.7)$ (27.7)119.1
Less: financing operations interest expense(47.8)(37.5)27.5
Less: used vehicle line of credit interest(6.2)(1.5)313.3
Add: acquisition expenses7.71.3492.3
Less: loss (gain) on divestitures(7.2)NM
Add: investment loss0.5NM
Add: insurance reserves0.1NM
Add: contract buyouts10.1NM
Adjusted EBITDA$ 361.5$ 406.2(11.0) %
NM – not meaningful
As of%
March 31,Increase
Net Debt to Adjusted EBITDA20242023(Decrease)
Floor plan notes payable: non-trade$ 2,428.7$ 1,664.945.9 %
Floor plan notes payable2,533.3999.3153.5
Used and service loaner vehicle inventory financing facility912.7843.68.2
Revolving lines of credit1,610.51,012.459.1
Warehouse facilities636.0875.0(27.3)
Non-recourse notes payable1,831.5825.4121.9
4.625% Senior notes due 2027400.0400.0
4.375% Senior notes due 2031550.0550.0
3.875% Senior notes due 2029800.0800.0
Finance leases and other debt880.6651.535.2
Unamortized debt issuance costs(30.2)(30.6)(1.3)
Total debt$ 12,553.1$ 8,591.546.1 %
Less: Floor plan related debt$ (5,874.7)$ (3,507.8)67.5 %
Less: Financing operations related debt(2,467.5)(1,700.4)45.1
Less: Unrestricted cash and cash equivalents(264.4)(184.9)43.0
Less: Marketable securities(49.9)
Less: Availability on used vehicle and service loaner financing facilities(31.7)(5.9)437.3
Net Debt$ 3,864.9$ 3,192.521.1 %
TTM Adjusted EBITDA$ 1,721.4$ 1,875.0(8.2) %
Net debt to Adjusted EBITDA2.25 x1.70 x
NM – not meaningful

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SOURCE Lithia Motors, Inc.

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