Driveway Transacts 800 Units in July, a 45% increase month-over-month and LAD Expands Network with Open Points

Rhea-AI Summary

Lithia & Driveway (NYSE: LAD) reported a significant increase in transaction volume, achieving 800 transactions in July, marking a 45% month-over-month rise from June's 550. This growth positions the company to approach its year-end target of 15,000 annual transactions. The company expanded its footprint in Texas with two new locations, including Grapevine Honda and Kia of Frisco, increasing its total to 32 stores. Additionally, Lithia & Driveway is ahead of its 5-Year Plan aiming for $50 billion in revenue and $50 EPS by 2025, having achieved 41% of its network expansion goal in 2021.

Positive

• 800 transactions in July, a 45% increase from June.
• On track for nearly 10,000 annual transactions.
• Expansion with two new store openings in Texas.
• 41% of network expansion goal achieved in 2021.

Negative

• None.

MEDFORD, Ore., Aug. 10, 2021 /PRNewswire/ -- Lithia & Driveway (NYSE: LAD) reported transaction volume acceleration and are exceeding mid-year projections. Driveway reported 800 transactions in the month of July, compared to 550 in June, a 45% increase month-over-month. The company is now pacing nearly 10,000 annual transactions and one large step closer to the year-end run rate target of 15,000.

"Our omni-channel approach is proving to be a welcome solution providing consumers choices of when, where and how they transact. With Driveway, we gain an incremental channel to reach consumers seeking a more convenient, shop, sell and service online and in-home experience. Driveway leverages our existing strengths of the network, inventory and personnel to a whole new level, translating into more sales and robust customer loyalty through our first national brand," said Bryan DeBoer, President and CEO of Lithia & Driveway. 

In addition to Driveway's growing presence, LAD further expanded in one of the top markets in the United States with the addition of two new open points. 

The addition of Grapevine Honda with new partner Jessie Armstead, former NFL NY Giants star linebacker, adds to the Dallas/Fort Worth market. Additionally, LAD purchased the newly opened Kia of Frisco location. With these additions, LAD's network in Texas totals 32 stores. "Our track record of high performance underpins our relationships with our manufacturer partners, and we appreciate their continued trust in our ability to meet customer needs and grow market share," said DeBoer.

LAD is outpacing its 5-Year Plan to achieve $50 billion in revenue and $50 in earnings per share (EPS) by 2025. Lithia & Driveway has acquired and opened $4.8 billion in total annualized revenues in 2021, achieving 41% of the network expansion portion of its 5-Year Plan. These purchases were financed using existing on-balance sheet capacity.  

About Lithia & Driveway (LAD)   

LAD is a growth company powered by people and innovation with a 5-Year Plan to profitably consolidate the largest retail sector in the country. As the leading provider of personal transportation solutions in the United States, LAD is among the fastest-growing companies in the Fortune 500 and is currently ranked #231 (#2 on 10-Year EPS Growth, #3 on 10-Year TSR and #12 on 10-year Revenue growth in 2021). By providing a wide array of products and services for the entire vehicle ownership lifecycle through various consumer channels, they build magnetic brand loyalty. Operational excellence is achieved by focusing the business on convenient and transparent consumer experiences supported by proprietary data science to improve market share, consumer loyalty and profitability. LAD's omni-channel strategy will continue to pragmatically disrupt the industry by leveraging experienced teams, vast owned inventories, technology, and physical network. Continuing to lead the industry's consolidation and Driveway's e-commerce in-home experiences further accelerates the massive regenerating capital engine. Together, these endeavors create a unique and compelling high-growth strategy that provides transportation solutions wherever, whenever, and however consumers desire.    

Sites:  
www.lithiamotors.com  
www.lithiainvestorrelations.com  
www.lithiacareers.com  
www.driveway.com  

Lithia & Driveway on Facebook  
http://www.facebook.com/LithiaMotors  
http://www.facebook.com/DrivewayHQ 

Lithia & Driveway on Twitter  
http://twitter.com/LithiaMotors  
http://twitter.com/DrivewayHQ   

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SOURCE Lithia Motors, Inc.

FAQ

What was Lithia & Driveway's transaction volume in July 2021?

Lithia & Driveway reported 800 transactions in July 2021, a 45% increase from June.

How many annual transactions is Lithia & Driveway pacing towards?

The company is pacing for nearly 10,000 annual transactions.

What is Lithia & Driveway's 5-Year Plan revenue target?

Lithia & Driveway's 5-Year Plan targets $50 billion in revenue by 2025.

Where did Lithia & Driveway expand its network recently?

Lithia & Driveway expanded its network in Texas with the addition of Grapevine Honda and Kia of Frisco.