LAD Adds $240 Million in Revenue, Expanding Reach in Key Southeast Region

Rhea-AI Summary

Lithia Motors & Driveway (NYSE: LAD) has acquired two stores from Fields Auto Group in Florida, including a Land Rover and a Chrysler Jeep Dodge Ram location. This acquisition enhances their presence in the Southeast Region. Additionally, the company opened a new Infiniti location in Downtown Los Angeles, expected to generate $40 million in annualized revenue. The total projected annualized revenue from these acquisitions is approximately $200 million, contributing to Lithia's goal of reaching $50 billion in revenue as part of their five-year plan.

Positive

• Acquisition of two stores expected to generate $200 million in annual revenue.
• New Infiniti location anticipated to add $40 million in annualized revenue.
• Total projected annualized revenue since launch of five-year plan exceeds $3.5 billion.

Negative

• None.

Lithia Motors & Driveway (NYSE: LAD) today announced it has acquired two stores in Florida from Fields Auto Group. The transaction includes a Land Rover and a Chrysler Jeep Dodge Ram location, both located in the Greater Orlando, Florida market. In addition, LAD announced the opening of a previously awarded Infiniti location in the Downtown Los Angeles area.

The two stores acquired from Fields Auto Group is another key milestone for Lithia & Driveway, marking further expansion in Florida and improves its density in the Southeast Region. “We are excited to welcome the high performing Fields Auto Group to the Lithia & Driveway family,” said Bryan DeBoer, Lithia Motors & Driveway’s President and CEO. “This acquisition will further expand the reach of Driveway, our digital in-home solution, providing products and services throughout the entire vehicle-ownership lifecycle in our growing Southeast Region.”

The Infiniti location in Los Angeles is expected to add $40 million in annualized revenue with Fields Auto Group expected to add $200 million in annualized revenue. This brings the total annualized revenue acquired to over $3.5 billion since the launch of LAD’s five-year plan to reach $50 billion in revenue and $50 of earnings per share. “We are approaching our annual target of $4 billion in revenue with five months remaining in the first year of our plan and are considerably ahead of schedule,” said DeBoer. This transaction was financed using the capital raised in concurrent equity and debt offerings late last year.

About Lithia Motors & Driveway:

Lithia Motors & Driveway is a growth company powered by people and innovation with a 5-year plan to profitably consolidate the largest retail sector in the country. They are a leading provider of personal transportation solutions in the United States and are among the fastest-growing companies in the Fortune 500 (#6 on 10-Year EPS Growth, #4 10-Year TSR in 2020). By providing a wide array of products throughout the entire lifecycle of the consumer's vehicle ownership experience 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 increase market share, consumer loyalty and team performance. Lithia's omni-channel strategy will continue to pragmatically disrupt the industry by leveraging experienced teams, vast owned inventories, technology, and physical network. By purchasing strong businesses, they further strengthen this network, leveraging their national digital home channel Driveway and building upon 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.

Company Websites
www.lithiamotors.com
www.lithiainvestorrelations.com
www.lithiacareers.com
www.driveway.com

Lithia Motors on Facebook
http://www.facebook.com/LithiaMotors

Lithia Motors on Twitter
http://twitter.com/lithiamotors

View source version on businesswire.com: https://www.businesswire.com/news/home/20210209005314/en/

FAQ

What is the recent acquisition by Lithia Motors (LAD)?

Lithia Motors has acquired two stores from Fields Auto Group, including a Land Rover and a Chrysler Jeep Dodge Ram location in Florida.

How much revenue is expected from the new Infiniti location opened by LAD?

The new Infiniti location in Downtown Los Angeles is expected to add $40 million in annualized revenue.

What is the total annualized revenue from the recent acquisitions by LAD?

The total projected annualized revenue from the recent acquisitions, including the Fields Auto Group stores, is approximately $200 million.

How does the recent acquisition impact LAD's five-year plan?

The acquisition contributes to Lithia's goal of reaching $50 billion in revenue as part of their five-year plan.

What is Lithia's current revenue target status?

Lithia Motors is approaching an annual revenue target of $4 billion with five months remaining in their first planning year.