Lithia & Driveway (LAD) Reports Record Fourth Quarter Revenue of $9.2 billion, a 20% Increase, and the First Profitable Year for Finance Operations
Lithia & Driveway (LAD) reported record fourth quarter 2024 revenue of $9.2 billion, a 20% increase from $7.7 billion in Q4 2023. The company achieved diluted earnings per share of $8.12, up 5% year-over-year, while Q4 net income remained flat at $217 million.
Notable achievements include a 7.4% increase in new retail units on a same-store basis, and Driveway Finance originating $501 million in loans with a portfolio of $3.9 billion in average managed receivables. The company marked its first profitable year for Financing Operations with income of $15.4 million, compared to a loss of $45.9 million in 2023.
Full-year 2024 revenue increased 17% to $36.2 billion, though net income decreased 20% to $0.8 billion. The Board approved a dividend of $0.53 per share for Q4 2024. During 2024, LAD repurchased approximately 1,230,000 shares at an average price of $283.
Lithia & Driveway (LAD) ha riportato un fatturato record per il quarto trimestre del 2024 di 9,2 miliardi di dollari, un aumento del 20% rispetto ai 7,7 miliardi di dollari del Q4 2023. L'azienda ha registrato un utile per azione diluito di 8,12 dollari, in aumento del 5% rispetto all'anno precedente, mentre il reddito netto del Q4 è rimasto invariato a 217 milioni di dollari.
Tra i risultati notevoli si evidenzia un aumento del 7,4% delle nuove unità al dettaglio su base same-store, e Driveway Finance ha originato prestiti per 501 milioni di dollari con un portafoglio di 3,9 miliardi di dollari in crediti medi gestiti. L'azienda ha segnato il suo primo anno redditizio per le Operazioni di Finanziamento con un reddito di 15,4 milioni di dollari, rispetto a una perdita di 45,9 milioni di dollari nel 2023.
Il fatturato totale per il 2024 è aumentato del 17% a 36,2 miliardi di dollari, sebbene il reddito netto sia diminuito del 20% a 0,8 miliardi di dollari. Il Consiglio ha approvato un dividendo di 0,53 dollari per azione per il Q4 2024. Durante il 2024, LAD ha riacquistato circa 1.230.000 azioni a un prezzo medio di 283 dollari.
Lithia & Driveway (LAD) reportó ingresos récord de 9.2 mil millones de dólares en el cuarto trimestre de 2024, un aumento del 20% respecto a los 7.7 mil millones de dólares en el Q4 2023. La compañía logró ganancias por acción diluida de 8.12 dólares, un aumento del 5% interanual, mientras que el ingreso neto del Q4 se mantuvo plano en 217 millones de dólares.
Logros notables incluyen un aumento del 7.4% en nuevas unidades minoristas a base de tiendas comparables, y Driveway Finance originó 501 millones de dólares en préstamos con un portafolio de 3.9 mil millones de dólares en cuentas por cobrar gestionadas. La compañía marcó su primer año rentable en Operaciones de Financiamiento con un ingreso de 15.4 millones de dólares, en comparación con una pérdida de 45.9 millones de dólares en 2023.
Los ingresos totales del año 2024 aumentaron un 17% a 36.2 mil millones de dólares, aunque el ingreso neto disminuyó un 20% a 0.8 mil millones de dólares. La Junta aprobó un dividendo de 0.53 dólares por acción para el Q4 2024. Durante 2024, LAD recompró aproximadamente 1,230,000 acciones a un precio promedio de 283 dólares.
리시아 & 드라이브웨이 (LAD)는 2024년 4분기 매출이 92억 달러로 기록적이라고 보고했으며, 이는 2023년 4분기 77억 달러 대비 20% 증가한 수치입니다. 이 회사는 희석 주당 순이익이 8.12달러로, 전년 대비 5% 증가했으며, 4분기 순이익은 2억 1700만 달러로 유지되었습니다.
주목할 만한 성과로는 동일 매장 기준 새 소매 유닛이 7.4% 증가한 것과 드라이브웨이 파이낸스가 5억 1000만 달러의 대출을 발생시키며 평균 관리 채권 포트폴리오가 39억 달러에 달하는 것입니다. 이 회사는 금융 운영에서 1540만 달러의 수익으로 첫 번째 수익성 있는 해를 기록했으며, 이는 2023년 4590만 달러의 손실과 비교됩니다.
2024년 전체 연간 매출은 362억 달러로 17% 증가했으나, 순이익은 20% 감소하여 8억 달러로 집계되었습니다. 이사회는 2024년 4분기 주당 0.53달러의 배당금을 승인했습니다. 2024년 동안 LAD는 평균 283달러의 가격으로 약 123만 주를 재매입했습니다.
Lithia & Driveway (LAD) a annoncé un chiffre d'affaires record de 9,2 milliards de dollars pour le quatrième trimestre 2024, soit une augmentation de 20% par rapport aux 7,7 milliards de dollars du Q4 2023. La société a réalisé un bénéfice par action dilué de 8,12 dollars, en hausse de 5% d'une année sur l'autre, tandis que le revenu net du Q4 est resté stable à 217 millions de dollars.
Parmi les réalisations notables, on note une augmentation de 7,4% des nouvelles unités de vente au détail sur une base de magasins comparables, et Driveway Finance a originairement 501 millions de dollars de prêts avec un portefeuille de 3,9 milliards de dollars en créances gérées. L'entreprise a marqué sa première année rentable pour les opérations de financement avec un revenu de 15,4 millions de dollars, contre une perte de 45,9 millions de dollars en 2023.
Les revenus annuels pour 2024 ont augmenté de 17% pour atteindre 36,2 milliards de dollars, bien que le revenu net ait diminué de 20% pour atteindre 0,8 milliard de dollars. Le conseil d'administration a approuvé un dividende de 0,53 dollar par action pour le Q4 2024. Au cours de l'année 2024, LAD a racheté environ 1.230.000 actions à un prix moyen de 283 dollars.
Lithia & Driveway (LAD) berichtete von einem Rekordumsatz von 9,2 Milliarden Dollar im vierten Quartal 2024, was einem Anstieg von 20% im Vergleich zu 7,7 Milliarden Dollar im Q4 2023 entspricht. Das Unternehmen erzielte einen verwässerten Gewinn pro Aktie von 8,12 Dollar, was einem Anstieg von 5% im Jahresvergleich entspricht, während der Nettogewinn im Q4 mit 217 Millionen Dollar stabil blieb.
Zu den bemerkenswerten Erfolgen gehört ein Anstieg von 7,4% bei neuen Einzelhandelseinheiten auf vergleichbarer Basis, und Driveway Finance hat Kredite in Höhe von 501 Millionen Dollar mit einem Portfolio von 3,9 Milliarden Dollar an durchschnittlich verwalteten Forderungen vergeben. Das Unternehmen verzeichnete sein erstes profitables Jahr im Finanzierungsbetrieb mit einem Gewinn von 15,4 Millionen Dollar, im Vergleich zu einem Verlust von 45,9 Millionen Dollar im Jahr 2023.
Der Gesamtumsatz für 2024 stieg um 17% auf 36,2 Milliarden Dollar, während der Nettogewinn um 20% auf 0,8 Milliarden Dollar zurückging. Der Vorstand genehmigte eine Dividende von 0,53 Dollar pro Aktie für das Q4 2024. Im Jahr 2024 hat LAD etwa 1.230.000 Aktien zu einem durchschnittlichen Preis von 283 Dollar zurückgekauft.
- Record Q4 revenue of $9.2 billion, up 20% YoY
- 7.4% increase in new retail units on same-store basis
- First profitable year for Financing Operations ($15.4M vs -$45.9M in 2023)
- 4.5% increase in aftermarket gross profit
- Share repurchase of 1.23M shares in 2024
- Q4 adjusted net income decreased 10% YoY to $209M
- Full-year net income decreased 20% to $0.8B
- Full-year adjusted EPS decreased 19% to $29.96
Insights
Lithia & Driveway's Q4 2024 results reveal a company successfully executing its growth strategy while navigating margin pressures. The 20% revenue growth to $9.2 billion demonstrates strong market positioning, particularly impressive given the competitive auto retail landscape. The 7.4% same-store growth in new retail units significantly outperforms industry averages, indicating market share gains and effective inventory management.
A pivotal achievement is Driveway Finance 's first profitable year, posting $15.4 million in income compared to a
However, the
The company's capital allocation strategy remains balanced:- Continued network expansion (Stohlman Subaru acquisition)- Shareholder returns (
The omnichannel strategy's maturation, coupled with the profitable financing arm, positions LAD for sustainable growth. The focus on customer loyalty and ecosystem development suggests a shift from pure volume growth to deeper customer relationships and recurring revenue streams.
Announces Dividend of
Fourth quarter 2024 revenue increased
Fourth quarter 2024 diluted earnings per share attributable to LAD was
Fourth quarter 2024 net income was
As shown in the attached non-GAAP reconciliation tables, the 2024 fourth quarter adjusted results exclude a
Key Fourth Quarter 2024 Highlights:
- Total revenues increased
20% compared to fourth quarter 2023 - New retail units increased 7.4 % on a same-store basis
- Aftersales gross profit increased
4.5% on a same-store basis - Driveway Finance Corporation (DFC) originated
$501 million $3.9 billion 4.7% - Repurchased
0.9% of outstanding shares
"2024 marks another milestone year for Lithia & Driveway, with record-breaking fourth-quarter revenues, the first profitable year for Driveway Finance, and the continued maturity of foundational elements to our strategy." said Bryan DeBoer, President and CEO. "Our focus on providing experiences that enhance customer loyalty, unlocking the full potential of our platform, and accelerating the growth of our unique ecosystem, positions us to deliver sustainable performance and best-in-class returns. We believe our omnichannel strategy, supported by a strong financial foundation, will allow us to drive continued growth in 2025 and beyond."
Full year 2024 revenue increased
Full year 2024 diluted earnings per share attributable to LAD was
As shown in the attached non-GAAP reconciliation tables, the 2024 adjusted results exclude a
Full Year-over-Year and 2024 Operating Highlights:
- Record full year revenues of
$36.2 billion $5.9 billion of acquired annual revenue - Aftersales gross profit increased
4.7% on a same-store basis - Financing operations first profitable year with income of
$15.4 million $45.9 million - Driveway Finance Corporation scaled portfolio to
$3.7 billion 4.2% - Repurchased
$348 million 4.6% of shares outstanding
Corporate Development
In January 2025, LAD continued to expand its network in the Mid-Atlantic region with the acquisition of the Stohlman Subaru store in
Balance Sheet Update
LAD ended the fourth quarter with approximately
Dividend Payment and Share Repurchases
The Board of Directors approved a dividend of
During 2024, we repurchased approximately 1,230,000 shares at a weighted average price of
Fourth Quarter Earnings Conference Call and Updated Presentation
The fourth quarter 2024 conference call may be accessed at 10:00 a.m. ET today by telephone at 877-407-8029. An updated presentation highlighting the fourth quarter 2024 results has been added to our investor relations website. To listen live on our website or for replay, visit investors.lithiadriveway.com and click on quarterly earnings.
About Lithia & Driveway (LAD)
Lithia & Driveway (NYSE: LAD) is the largest global automotive retailer providing a wide array of products and services throughout the vehicle ownership lifecycle. Simple, convenient, and transparent experiences are offered through our comprehensive network of physical locations, e-commerce platforms, captive finance solutions, fleet management offerings, and other synergistic adjacencies. We deliver consistent, profitable growth in a massive and unconsolidated industry. Our highly diversified and competitively differentiated design provides us the flexibility and scale to pursue our vision to modernize personal transportation solutions wherever, whenever and however consumers desire.
Sites
www.lithia.com
investors.lithiadriveway.com
www.lithiacareers.com
www.driveway.com
www.greencars.com
www.drivewayfinancecorp.com
Lithia & Driveway on Facebook
https://www.facebook.com/LithiaMotors
https://www.facebook.com/DrivewayHQ
Lithia & Driveway on X
https://x.com/lithiamotors
https://x.com/DrivewayHQ
https://x.com/GreenCarsHQ
Forward-Looking Statements
Certain statements in this presentation, and at times made by our officers and representatives, constitute forward-looking statements within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Generally, you can identify forward-looking statements by terms such as "project," "outlook," "target," "may," "will," "would," "should," "seek," "expect," "plan," "intend," "forecast," "anticipate," "believe," "estimate," "predict," "potential," "likely," "ensure," "goal," "strategy," "future," "maintain," and "continue" or the negative of these terms or other comparable terms. Examples of forward-looking statements in this presentation include, among others, statements regarding:
- Future market conditions, including anticipated car and other sales and gross profit levels and the supply of inventory
- Our business strategy and plans, including our achieving our long-term EPS and other financial targets
- The growth, expansion, make-up and success of our network, including our finding accretive acquisitions that meet our target valuations and acquiring additional stores
- Annualized revenues from acquired stores or achieving target returns
- The growth and performance of our Driveway e-commerce home solution and Driveway Finance Corporation (DFC), their synergies and other impacts on our business and our ability to meet Driveway and DFC-related targets
- The impact of sustainable vehicles and other market and regulatory changes on our business, including evolving vehicle distribution models
- Our capital allocations and uses and levels of capital expenditures in the future
- Expected operating results, such as improved store performance, continued improvement of selling, general and administrative expenses as a percentage of gross profit and any projections
- Our anticipated financial condition and liquidity, including from our cash and the future availability of our credit facilities, unfinanced real estate and other financing sources
- Our continuing to purchase shares under our share repurchase program
- Our compliance with financial and restrictive covenants in our credit facilities and other debt agreements
- Our programs and initiatives for team member recruitment, training, and retention
- Our strategies and targets for customer retention, growth, market position, operations, financial results and risk management
Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Forward-looking statements are not guarantees of future performance, and our actual results of operations, financial condition and liquidity and development of the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements in this presentation. Therefore, you should not rely on any of these forward-looking statements. The risks and uncertainties that could cause actual results to differ materially from estimated or projected results include, without limitation:
- Future national and local economic and financial conditions, including as a result of inflation, governmental programs and spending, and public health issues
- The market for dealerships, including the availability of stores to us for an acceptable price
- Changes in customer demand and the electric vehicle landscape and the impact of evolving digital technologies
- Changes in our relationship with, and the financial and operational stability of, OEMs and other suppliers, and vehicle delivery models
- Changes in the competitive landscape, including through technology and our ability to deliver new products, services and customer experiences and a portfolio of in-demand and available vehicles
- Risks associated with our indebtedness, including available borrowing capacity, interest rates, compliance with financial covenants and ability to refinance or repay indebtedness on favorable terms
- The adequacy of our cash flows and other conditions which may affect our ability to fund capital expenditures, obtain favorable financing and pay our quarterly dividend at planned levels
- Disruptions to our technology network including computer systems, as well as natural events such as severe weather or man-made or other disruptions of our operating systems, facilities or equipment
- Government regulations and legislation
- The risks set forth throughout "Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" and in "Part I, Item 1A. Risk Factors" of our most recent Annual Report on Form 10-K, and in "Part II, Item 1A. Risk Factors" of our Quarterly Reports on Form 10-Q, and from time to time in our other filings with the SEC.
Any forward-looking statement made by us in this presentation is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by law, we undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
Non-GAAP Financial Measures
This presentation contains non-GAAP financial measures, which may include adjusted net income, adjusted net income attributable to LAD, adjusted net income attributable to non-controlling interests, adjusted net income attributable to redeemable non-controlling interest, adjusted diluted earnings per share attributable to LAD, adjusted SG&A, adjusted SG&A as a percentage of revenue and gross profit, adjusted operating income, adjusted net cash provided by operating activities, adjusted income before income taxes, adjusted income tax (provision) benefit, adjusted operating profit as a percentage of revenue and gross profit, adjusted pre-tax margin and net profit margin, EBITDA, adjusted EBITDA and net debt. Non-GAAP measures do not have definitions under GAAP and may be defined differently by and not comparable to similarly titled measures used by other companies. As a result, we review any non-GAAP financial measures in connection with a review of the most directly comparable measures calculated in accordance with GAAP. We caution you not to place undue reliance on such non-GAAP measures, but also to consider them with the most directly comparable GAAP measures. We present cash flows from operations in the attached tables, adjusted to include the change in non-trade floor plan debt to improve the visibility of cash flows related to vehicle financing. As required by SEC rules, we have reconciled these measures to the most directly comparable GAAP measures in the attachments to this release. We believe the non-GAAP financial measures we present improve the transparency of our disclosures; provide a meaningful presentation of our results from core business operations, because they exclude items not related to core business operations and other non-cash items; and improve the period-to-period comparability of our results from core business operations. These presentations should not be considered an alternative to GAAP measures.
LAD | |||||||||||
Three months ended | % | Twelve months ended | % | ||||||||
Increase | Increase | ||||||||||
2024 | 2023 | (Decrease) | 2024 | 2023 | (Decrease) | ||||||
Revenues: | |||||||||||
New vehicle retail | $ 4,705.9 | $ 3,974.8 | 18.4 % | $ 17,553.8 | $ 15,154.2 | 15.8 % | |||||
Used vehicle retail | 2,638.5 | 2,267.5 | 16.4 | 11,268.6 | 9,570.2 | 17.7 | |||||
Used vehicle wholesale | 340.9 | 242.9 | 40.3 | 1,359.0 | 1,325.3 | 2.5 | |||||
Finance and insurance | 355.8 | 331.5 | 7.3 | 1,417.7 | 1,337.0 | 6.0 | |||||
Aftersales | 973.8 | 818.3 | 19.0 | 3,850.1 | 3,197.1 | 20.4 | |||||
Fleet and other | 207.2 | 39.5 | 424.6 | 787.7 | 458.5 | 71.8 | |||||
Total revenues | 9,222.1 | 7,674.5 | 20.2 % | 36,236.9 | 31,042.3 | 16.7 % | |||||
Cost of sales: | |||||||||||
New vehicle retail | 4,398.7 | 3,660.5 | 20.2 | 16,324.1 | 13,760.1 | 18.6 | |||||
Used vehicle retail | 2,477.0 | 2,113.4 | 17.2 | 10,539.9 | 8,848.8 | 19.1 | |||||
Used vehicle wholesale | 344.5 | 251.8 | 36.8 | 1,365.3 | 1,343.7 | 1.6 | |||||
Aftersales | 442.1 | 368.0 | 20.1 | 1,727.2 | 1,445.7 | 19.5 | |||||
Fleet and other | 188.3 | 20.0 | 841.5 | 719.4 | 415.1 | 73.3 | |||||
Total cost of sales | 7,850.6 | 6,413.7 | 22.4 | 30,675.9 | 25,813.4 | 18.8 | |||||
Gross profit | 1,371.5 | 1,260.8 | 8.8 % | 5,561.0 | 5,228.9 | 6.4 % | |||||
Finance operations income (loss) | 9.0 | (2.1) | NM | 15.4 | (45.9) | NM | |||||
SG&A expense | 902.1 | 836.8 | 7.8 | 3,755.2 | 3,294.8 | 14.0 | |||||
Depreciation and amortization | 62.1 | 49.4 | 25.7 | 245.6 | 195.8 | 25.4 | |||||
Income from operations | 416.3 | 372.5 | 11.8 % | 1,575.6 | 1,692.4 | (6.9) % | |||||
Floor plan interest expense | (64.8) | (48.3) | 34.2 | (278.8) | (150.9) | 84.8 | |||||
Other interest expense | (68.4) | (59.7) | 14.6 | (257.8) | (201.2) | 28.1 | |||||
Other income | 3.9 | 15.2 | (74.3) | 39.3 | 22.0 | 78.6 | |||||
Income before income taxes | 287.0 | 279.7 | 2.6 % | 1,078.3 | 1,362.3 | (20.8) % | |||||
Income tax expense | (69.8) | (63.6) | 9.7 | (256.7) | (350.6) | (26.8) | |||||
Income tax rate | 24.3 % | 22.7 % | 23.8 % | 25.7 % | |||||||
Net income | $ 217.2 | $ 216.1 | 0.5 % | $ 821.6 | $ 1,011.7 | (18.8) % | |||||
Net income attributable to non-controlling interests | (1.0) | (1.9) | (47.4) % | (4.8) | (6.5) | (26.2) % | |||||
Net income attributable to redeemable non-controlling interest | — | (0.8) | (100.0) % | (14.8) | (4.4) | 236.4 % | |||||
Net income attributable to LAD | $ 216.2 | $ 213.4 | 1.3 % | $ 802.0 | $ 1,000.8 | (19.9) % | |||||
Diluted earnings per share attributable to LAD: | |||||||||||
Net income per share | $ 8.12 | $ 7.74 | 4.9 % | $ 29.65 | $ 36.29 | (18.3) % | |||||
Diluted shares outstanding | 26.6 | 27.6 | (3.6) % | 27.1 | 27.6 | (1.8) % | |||||
NM - not meaningful |
LAD | |||||||||||
Three months ended | % | Twelve months ended | % | ||||||||
Increase | Increase | ||||||||||
2024 | 2023 | (Decrease) | 2024 | 2023 | (Decrease) | ||||||
Gross margin | |||||||||||
New vehicle retail | 6.5 % | 7.9 % | (140) bps | 7.0 % | 9.2 % | (220) bps | |||||
Used vehicle retail | 6.1 | 6.8 | (70) | 6.5 | 7.5 | (100) | |||||
Finance and insurance | 100.0 | 100.0 | — | 100.0 | 100.0 | — | |||||
Aftersales | 54.6 | 55.0 | (40) | 55.1 | 54.8 | 30 | |||||
Gross profit margin | 14.9 | 16.4 | (150) | 15.3 | 16.8 | (150) | |||||
Unit sales | |||||||||||
New vehicle retail | 96,760 | 80,596 | 20.1 % | 369,913 | 314,116 | 17.8 % | |||||
Used vehicle retail | 95,342 | 78,424 | 21.6 | 411,925 | 325,764 | 26.4 | |||||
Average selling price | |||||||||||
New vehicle retail | $ 48,635 | $ 49,318 | (1.4) % | $ 47,454 | $ 48,244 | (1.6) % | |||||
Used vehicle retail | 27,674 | 28,913 | (4.3) | 27,356 | 29,378 | (6.9) | |||||
Average gross profit per unit | |||||||||||
New vehicle retail | (18.6) % | $ 3,324 | $ 4,438 | (25.1) % | |||||||
Used vehicle retail | 1,694 | 1,965 | (13.8) | 1,769 | 2,215 | (20.1) | |||||
Finance and insurance | 1,852 | 2,084 | (11.1) | 1,813 | 2,090 | (13.3) | |||||
Total vehicle(1) | 4,273 | 4,973 | (14.1) | 4,310 | 5,367 | (19.7) | |||||
Revenue mix | |||||||||||
New vehicle retail | 51.0 % | 51.8 % | 48.4 % | 48.8 % | |||||||
Used vehicle retail | 28.6 | 29.5 | 31.1 | 30.8 | |||||||
Used vehicle wholesale | 3.7 | 3.2 | 3.8 | 4.3 | |||||||
Finance and insurance, net | 3.9 | 4.3 | 3.9 | 4.3 | |||||||
Aftersales | 10.6 | 10.7 | 10.6 | 10.3 | |||||||
Fleet and other | 2.2 | 0.5 | 2.2 | 1.5 | |||||||
Gross Profit Mix | |||||||||||
New vehicle retail | 22.4 % | 24.9 % | 22.1 % | 26.7 % | |||||||
Used vehicle retail | 11.8 | 12.2 | 13.1 | 13.8 | |||||||
Used vehicle wholesale | (0.3) | (0.7) | (0.1) | (0.4) | |||||||
Finance and insurance, net | 25.9 | 26.3 | 25.5 | 25.6 | |||||||
Aftersales | 38.8 | 35.7 | 38.2 | 33.5 | |||||||
Fleet and other | 1.4 | 1.6 | 1.2 | 0.8 | |||||||
Adjusted | As reported | Adjusted | As reported | ||||||||||||
Three months | Three months | Twelve months | Twelve months | ||||||||||||
Other metrics | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||
SG&A as a % of revenue | 9.9 % | 10.7 % | 9.8 % | 10.9 % | 10.3 % | 10.6 % | 10.4 % | 10.6 % | |||||||
SG&A as a % of gross profit | 66.3 | 65.2 | 65.8 | 66.4 | 67.4 | 62.7 | 67.5 | 63.0 | |||||||
Operating profit as a % of revenue | 4.4 | 5.1 | 4.5 | 4.9 | 4.4 | 5.5 | 4.3 | 5.5 | |||||||
Operating profit as a % of gross profit | 29.8 | 30.8 | 30.4 | 29.5 | 28.5 | 32.7 | 28.3 | 32.4 | |||||||
Pretax margin | 3.0 | 3.8 | 3.1 | 3.6 | 3.0 | 4.4 | 3.0 | 4.4 | |||||||
Net profit margin | 2.3 | 3.0 | 2.4 | 2.8 | 2.3 | 3.3 | 2.3 | 3.3 | |||||||
(1) | Includes the sales and gross profit related to new, used retail, used wholesale and finance and insurance and unit sales for new and |
LAD | |||||||||||
Three months ended | % | Twelve months ended | % | ||||||||
Increase | Increase | ||||||||||
2024 | 2023 | (Decrease) | 2024 | 2023 | (Decrease) | ||||||
Revenues | |||||||||||
New vehicle retail | $ 4,200.5 | $ 3,949.8 | 6.3 % | $ 15,150.8 | $ 14,884.6 | 1.8 % | |||||
Used vehicle retail | 2,119.0 | 2,248.4 | (5.8) | 8,623.9 | 9,372.6 | (8.0) | |||||
Finance and insurance | 321.8 | 328.4 | (2.0) | 1,251.0 | 1,311.4 | (4.6) | |||||
Aftersales | 838.1 | 810.3 | 3.4 | 3,220.2 | 3,128.1 | 2.9 | |||||
Total revenues | 7,854.3 | 7,615.4 | 3.1 | 29,634.2 | 30,446.9 | (2.7) | |||||
Gross profit | |||||||||||
New vehicle retail | (15.1) % | (24.7) % | |||||||||
Used vehicle retail | 145.8 | 153.6 | (5.1) | 638.4 | 707.7 | (9.8) | |||||
Finance and insurance | 321.8 | 328.4 | (2.0) | 1,251.0 | 1,311.4 | (4.6) | |||||
Aftersales | 467.3 | 447.3 | 4.5 | 1,799.2 | 1,719.0 | 4.7 | |||||
Total gross profit | 1,206.0 | 1,252.7 | (3.7) | 4,738.1 | 5,132.5 | (7.7) | |||||
Gross margin | |||||||||||
New vehicle retail | 6.3 % | 7.9 % | (160) bps | 6.8 % | 9.2 % | (240) bps | |||||
Used vehicle retail | 6.9 | 6.8 | 10 | 7.4 | 7.6 | (20) | |||||
Finance and insurance | 100.0 | 100.0 | — | 100.0 | 100.0 | — | |||||
Aftersales | 55.8 | 55.2 | 60 | 55.9 | 55.0 | 90 | |||||
Gross profit margin | 15.4 | 16.4 | (100) | 16.0 | 16.9 | (90) | |||||
Unit sales | |||||||||||
New vehicle retail | 86,077 | 80,110 | 7.4 % | 315,728 | 308,662 | 2.3 % | |||||
Used vehicle retail | 74,407 | 77,714 | (4.3) | 306,408 | 319,225 | (4.0) | |||||
Average selling price | |||||||||||
New vehicle retail | (1.0) % | (0.5) % | |||||||||
Used vehicle retail | 28,478 | 28,931 | (1.6) | 28,145 | 29,361 | (4.1) | |||||
Average gross profit per unit | |||||||||||
New vehicle retail | (21.0) % | $ 3,263 | $ 4,436 | (26.4) % | |||||||
Used vehicle retail | 1,959 | 1,976 | (0.9) | 2,084 | 2,217 | (6.0) | |||||
Finance and insurance | 2,005 | 2,081 | (3.7) | 2,011 | 2,089 | (3.7) | |||||
Total vehicle(1) | 4,535 | 4,979 | (8.9) | 4,668 | 5,368 | (13.0) | |||||
(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 |
LAD | |||||||
Three months ended December 31, | Twelve months ended December 31, | ||||||
2024 | 2024 | ||||||
Key Performance by Country | Total Revenue | Total Gross Profit | Total Revenue | Total Gross Profit | |||
79.3 % | 84.6 % | 77.9 % | 83.7 % | ||||
17.5 % | 12.9 % | 18.9 % | 13.7 % | ||||
3.2 % | 2.5 % | 3.2 % | 2.6 % | ||||
As of | |||||
December 31, | December 31, | December 31, | |||
Days' Supply(1) | 2024 | 2023 | 2022 | ||
New vehicle inventory | 59 | 47 | 32 | ||
Used vehicle inventory | 53 | 41 | 43 | ||
(1) | Days' supply in inventory is calculated using on-ground inventory unit levels and a 30-day total unit sales volumes, both at |
Selected Financing Operations Financial Information | |||||||||||||||
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
($ in millions) | 2024 | % (1) | 2023 | % (1) | 2024 | % (1) | 2023 | % (1) | |||||||
Interest and fee income | $ 95.6 | 9.7 | $ 73.2 | 8.9 | $ 347.8 | 9.5 | $ 249.4 | 8.9 | |||||||
Interest expense | (49.1) | (5.0) | (45.0) | (5.4) | (195.1) | (5.3) | (170.5) | (6.1) | |||||||
Total interest margin | $ 46.5 | 4.7 | $ 28.2 | 3.4 | $ 152.7 | 4.2 | $ 78.9 | 2.8 | |||||||
Lease income | 13.4 | 5.0 | 74.6 | 19.1 | |||||||||||
Lease costs | (9.3) | (2.1) | (60.3) | (8.4) | |||||||||||
Lease income, net | 4.1 | 2.9 | 14.3 | 10.7 | |||||||||||
Provision expense | (29.7) | (3.0) | (23.8) | (2.9) | (106.7) | (2.9) | (98.8) | (3.5) | |||||||
Other financing operations expenses | (11.8) | (9.4) | (44.9) | (36.7) | |||||||||||
Finance operations income (loss) | $ 9.0 | $ (2.1) | $ 15.4 | $ (45.9) | |||||||||||
Total average managed finance receivables | $ 3,928.7 | $ 3,277.0 | $ 3,659.9 | $ 2,802.8 | |||||||||||
(1) | Annualized percentage of total average managed finance receivables |
LAD | |||
December 31, 2024 | December 31, 2023 | ||
Cash, restricted cash, and cash equivalents | $ 402.2 | $ 941.4 | |
Trade receivables, net | 1,237.0 | 1,105.5 | |
Inventories, net | 5,911.7 | 4,753.9 | |
Other current assets | 221.3 | 136.8 | |
Total current assets | $ 7,772.2 | $ 6,937.6 | |
Property and equipment, net | 4,629.9 | 3,981.4 | |
Finance receivables, net | 3,875.2 | 3,259.9 | |
Intangibles | 4,665.8 | 4,332.8 | |
Other non-current assets | 2,184.8 | 1,120.8 | |
Total assets | $ 23,127.9 | $ 19,632.5 | |
Floor plan notes payable | 4,903.1 | 3,635.5 | |
Other current liabilities | 1,648.0 | 1,296.7 | |
Total current liabilities | $ 6,551.1 | $ 4,932.2 | |
Long-term debt, less current maturities | 6,119.3 | 5,483.7 | |
Non-recourse notes payable, less current maturities | 2,051.2 | 1,671.7 | |
Other long-term liabilities and deferred revenue | 1,726.9 | 1,262.0 | |
Total liabilities | $ 16,448.5 | $ 13,349.6 | |
Equity and redeemable non-controlling interest | 6,679.4 | 6,282.9 | |
Total liabilities, equity, and redeemable non-controlling interest | $ 23,127.9 | $ 19,632.5 | |
LAD | |||
Twelve months ended December 31, | |||
Cash flows from operating activities: | 2024 | 2023 | |
Net income | $ 821.6 | $ 1,011.7 | |
Adjustments to reconcile net income to net cash used in operating activities | 436.9 | 329.1 | |
Changes in: | |||
Inventories | (260.9) | (863.5) | |
Finance receivables | (629.4) | (1,052.0) | |
Floor plan notes payable | 109.4 | 363.7 | |
Other operating activities | (137.6) | (261.4) | |
Net cash provided by (used in) operating activities | 340.0 | (472.4) | |
Cash flows from investing activities: | |||
Capital expenditures | (351.4) | (230.2) | |
Cash paid for acquisitions, net of cash acquired | (1,248.5) | (1,185.1) | |
Proceeds from sales of stores | 85.7 | 142.9 | |
Other investing activities | (340.2) | 2.1 | |
Net cash used in investing activities | (1,854.4) | (1,270.3) | |
Cash flows from financing activities: | |||
Net borrowings on floor plan notes payable, non-trade | 389.9 | 878.7 | |
Net borrowings non-recourse notes payable | 403.7 | 1,283.4 | |
Net borrowings of other debt and finance lease liabilities | 615.8 | 358.3 | |
Proceeds from issuance of common stock | 27.3 | 29.7 | |
Repurchase of common stock | (365.9) | (48.9) | |
Dividends paid | (56.5) | (52.8) | |
Other financing activity | (21.6) | (38.6) | |
Net cash provided by financing activities | 992.7 | 2,409.8 | |
Effect of exchange rate changes on cash and restricted cash | (4.5) | 33.4 | |
Change in cash, restricted cash, and cash equivalents | (526.2) | 700.5 | |
Cash, restricted cash, and cash equivalents at beginning of period | 972.0 | 271.5 | |
Cash, restricted cash, and cash equivalents at end of period | 445.8 | 972.0 | |
LAD | |||
Twelve months ended December 31, | |||
Net cash provided by operating activities | 2024 | 2023 | |
As reported | $ 340.0 | $ (472.4) | |
Floor plan notes payable, non-trade, net | 389.9 | 878.7 | |
Adjust: finance receivables activity | 629.4 | 1,052.0 | |
Less: Borrowings on floor plan notes payable, non-trade associated with | (105.5) | (109.2) | |
Adjusted | $ 1,253.8 | $ 1,349.1 | |
LAD | |||||||||
Three Months Ended December 31, 2024 | |||||||||
As reported | Net gain on | Acquisition | Tax attribute | Adjusted | |||||
Selling, general and administrative | $ 902.1 | $ 7.9 | $ (0.3) | $ — | $ 909.7 | ||||
Operating income | 416.3 | (7.9) | 0.3 | — | 408.7 | ||||
Income before income taxes | 287.0 | (7.9) | 0.3 | — | 279.4 | ||||
Income tax (provision) benefit | (69.8) | 4.1 | (0.1) | (5.1) | (70.9) | ||||
Net income | $ 217.2 | $ (3.8) | $ 0.2 | $ (5.1) | $ 208.5 | ||||
Net income attributable to non- | (1.0) | — | — | — | (1.0) | ||||
Net income attributable to | — | — | — | — | — | ||||
Net income attributable to LAD | $ 216.2 | $ (3.8) | $ 0.2 | $ (5.1) | $ 207.5 | ||||
Diluted earnings per share attributable to LAD | $ 8.12 | $ (0.15) | $ 0.01 | $ (0.19) | $ 7.79 | ||||
Diluted share count | 26.6 | ||||||||
Three Months Ended December 31, 2023 | |||||||||
As reported | Net loss on | Insurance | Acquisition | Adjusted | |||||
Selling, general and administrative | $ 836.8 | $ (0.2) | $ 1.7 | $ (16.7) | $ 821.6 | ||||
Operating income | 372.5 | 0.2 | (1.7) | 16.7 | 387.7 | ||||
Income before income taxes | 279.7 | 0.2 | (1.7) | 16.6 | 294.8 | ||||
Income tax (provision) benefit | (63.6) | (0.3) | 0.5 | 0.6 | (62.8) | ||||
Net income | $ 216.1 | $ (0.1) | $ (1.2) | $ 17.2 | $ 232.0 | ||||
Net income attributable to non-controlling interests | $ (1.9) | $ — | $ — | $ — | $ (1.9) | ||||
Net income attributable to redeemable non- | $ (0.8) | $ — | $ — | $ — | $ (0.8) | ||||
Net income attributable to LAD | $ 213.4 | $ (0.1) | $ (1.2) | $ 17.2 | $ 229.3 | ||||
Diluted earnings per share attributable to LAD | $ 7.74 | $ — | $ (0.04) | $ 0.62 | $ 8.32 | ||||
Diluted share count | 27.6 | ||||||||
LAD | |||||||||||||
Twelve Months Ended December 31, 2024 | |||||||||||||
As reported | Net gain on | Insurance | Acquisition | Premium on | Tax attribute | Adjusted | |||||||
Selling, general and administrative | $ 3,755.2 | $ 8.2 | $ (6.1) | $ (10.0) | $ — | $ — | $ 3,747.3 | ||||||
Operating income | 1,575.6 | (8.2) | 6.1 | 10.0 | — | — | 1,583.5 | ||||||
Income before income taxes | 1,078.3 | (8.2) | 6.1 | 10.0 | — | — | 1,086.2 | ||||||
Income tax (provision) benefit | (256.7) | 4.1 | (1.6) | (0.5) | — | (13.1) | (267.8) | ||||||
Net income | $ 821.6 | $ (4.1) | $ 4.5 | $ 9.5 | $ — | $ (13.1) | $ 818.4 | ||||||
Net income attributable to non- | (4.8) | — | — | — | — | — | (4.8) | ||||||
Net income attributable to | (14.8) | — | — | — | 11.6 | — | (3.2) | ||||||
Net income attributable to LAD | $ 802.0 | $ (4.1) | $ 4.5 | $ 9.5 | $ 11.6 | $ (13.1) | $ 810.4 | ||||||
Diluted earnings per share | $ 29.65 | $ (0.15) | $ 0.17 | $ 0.35 | $ 0.43 | $ (0.49) | $ 29.96 | ||||||
Diluted share count | 27.1 | ||||||||||||
Twelve Months Ended December 31, 2023 | |||||||||||||
As reported | Net gain on | Insurance | Acquisition | Contract | Adjusted | ||||||||
Selling, general and administrative | $ 3,294.8 | $ 31.2 | $ (5.4) | $ (27.2) | $ (14.3) | $ 3,279.1 | |||||||
Operating income | 1,692.4 | (31.2) | 5.4 | 27.2 | 14.3 | 1,708.1 | |||||||
Income before income taxes | 1,362.3 | (31.2) | 5.4 | 27.2 | 14.3 | 1,378.0 | |||||||
Income tax (provision) benefit | (350.6) | 8.2 | (1.4) | (1.0) | (3.8) | (348.6) | |||||||
Net income | $ 1,011.7 | $ (23.0) | $ 4.0 | $ 26.2 | $ 10.5 | $ 1,029.4 | |||||||
Net income attributable to non-controlling interests | (6.5) | — | — | — | — | (6.5) | |||||||
Net income attributable to redeemable non- | (4.4) | — | — | — | — | (4.4) | |||||||
Net income attributable to LAD | $ 1,000.8 | $ (23.0) | $ 4.0 | $ 26.2 | $ 10.5 | $ 1,018.5 | |||||||
Diluted earnings per share attributable to LAD | $ 36.29 | $ (0.83) | $ 0.15 | $ 0.95 | $ 0.38 | $ 36.94 | |||||||
Diluted share count | 27.6 | ||||||||||||
LAD | |||||||||||
Three months ended | % | Twelve months ended | % | ||||||||
Increase | Increase | ||||||||||
2024 | 2023 | (Decrease) | 2024 | 2023 | (Decrease) | ||||||
EBITDA and Adjusted EBITDA | |||||||||||
Net income | $ 217.2 | $ 216.1 | 0.5 % | $ 821.6 | $ 1,011.7 | (18.8) % | |||||
Flooring interest expense | 64.8 | 48.3 | 34.2 | 278.8 | 150.9 | 84.8 | |||||
Other interest expense | 68.4 | 59.7 | 14.6 | 257.8 | 201.2 | 28.1 | |||||
Financing operations interest expense | 49.1 | 45.0 | 9.1 | 195.1 | 170.5 | 14.4 | |||||
Income tax expense | 69.8 | 63.6 | 9.7 | 256.7 | 350.6 | (26.8) | |||||
Depreciation and amortization | 62.1 | 49.4 | 25.7 | 245.6 | 195.8 | 25.4 | |||||
Financing operations depreciation expense | 13.7 | 2.1 | 552.4 | 51.0 | 8.4 | 507.1 | |||||
EBITDA | $ 545.1 | $ 484.2 | 12.6 % | $ 2,106.6 | $ 2,089.1 | 0.8 % | |||||
Other adjustments: | |||||||||||
Less: flooring interest expense | $ (64.8) | $ (48.3) | 34.2 | $ (278.8) | $ (150.9) | 84.8 | |||||
Less: financing operations interest expense | (49.1) | (45.0) | 9.1 | (195.1) | (170.5) | 14.4 | |||||
Less: used vehicle line of credit interest | (4.6) | (8.4) | (45.2) | (24.2) | (19.6) | 23.5 | |||||
Add: acquisition expenses | 0.3 | 16.6 | (98.2) | 10.0 | 27.2 | (63.2) | |||||
Less: loss (gain) on disposal of stores | (7.9) | 0.2 | NM | (8.2) | (31.2) | NM | |||||
Add: insurance reserves | — | (1.7) | NM | 6.1 | 5.4 | NM | |||||
Add: contract buyouts | — | — | NM | — | 14.3 | NM | |||||
Adjusted EBITDA | $ 419.0 | $ 397.6 | 5.4 % | $ 1,616.4 | $ 1,763.8 | (8.4) % | |||||
NM - not meaningful |
As of | % | |||
December 31, | Increase | |||
Net Debt to Adjusted EBITDA | 2024 | 2023 | (Decrease) | |
Floor plan notes payable | 34.9 % | |||
Used and service loaner vehicle inventory financing facility | 975.3 | 902.8 | 8.0 | |
Revolving lines of credit | 1,633.2 | 1,620.7 | 0.8 | |
Warehouse facilities | 834.0 | 587.0 | 42.1 | |
Non-recourse notes payable | 2,109.3 | 1,705.6 | 23.7 | |
400.0 | 400.0 | — | ||
550.0 | 550.0 | — | ||
800.0 | 800.0 | — | ||
Finance leases and other debt | 1,085.9 | 730.8 | 48.6 | |
Unamortized debt issuance costs | (25.1) | (31.8) | (21.1) | |
Total debt | $ 13,265.7 | $ 10,900.5 | 21.7 % | |
Less: Floor plan related debt | $ (5,878.4) | $ (4,538.3) | 29.5 % | |
Less: Financing operations related debt | (2,943.3) | (2,292.6) | 28.4 | |
Less: Unrestricted cash and cash equivalents | (225.1) | (825.0) | (72.7) | |
Less: Marketable securities | (53.4) | — | — | |
Less: Availability on used vehicle and service loaner financing facilities | (23.3) | (25.5) | (8.6) | |
Net Debt | 28.7 % | |||
TTM Adjusted EBITDA | (8.4) % | |||
Net debt to Adjusted EBITDA | 2.56 x | 1.83 x | ||
NM - not meaningful |
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SOURCE Lithia Motors, Inc.
FAQ
What was LAD's revenue growth in Q4 2024?
How much did LAD's Driveway Finance originate in loans during Q4 2024?
What was LAD's share repurchase activity in 2024?
What dividend did LAD announce for Q4 2024?
How did LAD's Financing Operations perform in 2024 compared to 2023?
