Lithia & Driveway (LAD) Further Expands Network Adding $170 Million in Revenue

Rhea-AI Summary

Lithia & Driveway (NYSE: LAD) announced its acquisition of Rock Honda, a prominent Honda dealership located in Fontana, CA. This strategic purchase enhances LAD's omni-channel network and is projected to generate $170 million in annual revenues, contributing to an anticipated total of over $4.9 billion in annualized revenue for the year. The acquisition aligns with LAD's ambitious goals to achieve $50 in earnings per share and $50 billion in revenue by 2025. The deal was financed through existing capacity on the balance sheet.

Positive

• Acquisition of Rock Honda expected to generate $170 million in annualized revenues.
• Total expected annualized revenue for LAD in 2021 projected to exceed $4.9 billion.
• Acquisition supports LAD's 5-year plan to reach $50 earnings per share and $50 billion in revenue by 2025.

Negative

• None.

MEDFORD, Ore., Aug. 24, 2021 /PRNewswire/ -- Lithia & Driveway (NYSE: LAD) today announced the acquisition of Rock Honda, a Top 20 Honda New Volume Dealer in the U.S. The purchase of this high-performing Honda dealership in the Inland Empire continues LAD's fast-paced growth trajectory and expands the reach of its omni-channel network.

Rock Honda is located in Fontana, CA and was the 16^th largest New Volume Honda store in the nation in 2020. In addition to vehicle sales and service, Rock Honda is also licensed to provide customers with personal insurance as part of their consumer offerings.

"We are excited to reach more consumers in the Southwest region and welcome the Rock Honda team to the Lithia & Driveway family. This high-performing, customer-focused store expands our omni-channel network and introduces a new adjacency with personal insurance products, further complementing our ability to provide consumers transportation solutions wherever, whenever and however they desire," said Bryan DeBoer, LAD President and CEO.

Rock Honda is expected to generate $170 million in annualized revenues, bringing LAD's total expected annualized revenue acquired to date in 2021 to over $4.9 billion. Lithia is pacing ahead of their 5-year plan to achieve $50 in earnings per share (EPS) and $50 billion in revenue by 2025. This purchase was financed using an 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 accelerate 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

View original content to download multimedia:https://www.prnewswire.com/news-releases/lithia--driveway-lad-further-expands-network-adding-170-million-in-revenue-301361238.html

SOURCE Lithia Motors, Inc.

FAQ

What is the significance of Lithia & Driveway's acquisition of Rock Honda?

The acquisition of Rock Honda expands Lithia & Driveway's omni-channel network and is expected to generate $170 million in annualized revenues.

How does the acquisition of Rock Honda impact LAD's financial outlook?

With the addition of Rock Honda, LAD's expected total annualized revenue for 2021 surpasses $4.9 billion, which supports their growth projections.

When did Lithia & Driveway announce the acquisition of Rock Honda?

The acquisition was announced on August 24, 2021.

What are Lithia & Driveway's goals for 2025?

LAD aims to achieve $50 in earnings per share and $50 billion in revenue by the year 2025.