Lithia Motors & Driveway (LAD) Eclipses $2 Billion in May Sales and Adds $350 Million in Revenue in Texas

Rhea-AI Summary

Lithia Motors & Driveway (NYSE: LAD) achieved record revenues of $2.1 billion in May 2021, marking an 89% increase from pre-pandemic 2019 levels and a 104% increase compared to May 2020. The company also acquired the Southwest Kia Auto Group, adding five locations in Texas, which is expected to generate $350 million in annual revenues. With a strategic five-year plan targeting $50 EPS and $50 billion in revenue, Lithia continues to expand its market presence and operational capacity.

Positive

• Record May revenues of $2.1 billion, up 89% compared to May 2019.
• Same store sales increased 26% year-over-year compared to May 2019.
• Acquired Southwest Kia Auto Group, expected to add $350 million in annual revenues.
• Five-year plan targets $50 EPS and $50 billion in revenue ahead of schedule.

Negative

• None.

MEDFORD, Ore., June 15, 2021 /PRNewswire/ -- Lithia Motors & Driveway (NYSE: LAD) today reported record May revenues of $2.1 billion and the acquisition of five locations across Texas.

For the month of May 2021 compared to pre-pandemic 2019 levels, total revenues increased 89% to $2.1 billion and total same stores sales increase 26%. Comparing May 2021 results to 2020 pandemic-impacted levels, total revenues increased 104% and total same store sales increased 42%.

"Our technology and team's ability to procure both new and used inventory, combined with continued strength in margins, drove strong performance," said Bryan Deboer, President and CEO. "With May same store growth of 20% in new vehicles and over 40% in used vehicles compared to pre-pandemic 2019 levels and service body and parts returning to 2019 levels, we are excited to be finishing up the first year of our 5-year plan to achieve $50 in EPS and $50 billion in revenue considerably ahead of plan."

LAD also announced it has acquired the Southwest Kia Auto Group with five locations in the major metropolitan markets of Austin and Dallas, Texas. "We have successfully and rapidly integrated the over $7.0 billion in acquisition completed and welcome the Southwest Kia team the Lithia and Driveway family," said DeBoer. "These locations expand our in-store and online offerings in the region with a brand that provides a diverse selection of products for all customer desires and affordability levels."

These locations are expected to add $350 million in annualized revenues and brings LAD's total expected annualized revenues acquired to $7.5 billion since the launch of its 5-year plan. This transaction was financed using existing on-balance sheet capacity.

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 (#12 on 10-year Revenue growth, #2 on 10-Year EPS Growth, #3 on 10-Year TSR in 2021). 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. 

Sites:
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

 

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SOURCE Lithia Motors, Inc.

FAQ

What were Lithia Motors' revenues in May 2021?

Lithia Motors reported record revenues of $2.1 billion in May 2021.

How much did Lithia Motors increase its revenues compared to pre-pandemic levels?

Revenues increased by 89% compared to pre-pandemic 2019 levels.

What acquisition did Lithia Motors announce?

Lithia Motors announced the acquisition of the Southwest Kia Auto Group, adding five locations in Texas.

What is the expected annual revenue from the Southwest Kia acquisition?

The Southwest Kia acquisition is expected to generate $350 million in annualized revenues.

What is Lithia Motors' five-year financial target?

Lithia Motors aims for $50 in EPS and $50 billion in revenue as part of its five-year plan.