Lithia & Driveway (LAD), parent company of Airstream Adventures, reported on Wednesday that first quarter 2024 revenue increased 23% to $8.6 billion from $7.0 billion in the first quarter of 2023, the highest first quarter revenue in company history.
First quarter 2024 net income attributable to LAD per diluted share was $5.89, a 29% decrease from $8.30 per diluted share reported in the first quarter of 2023. Adjusted first quarter 2024 net income attributable to LAD per diluted share was $6.11, a 28% decrease compared to $8.44 per diluted share in the same period of 2023. Unrealized foreign currency losses negatively impacted earnings per share by $0.15.
First quarter 2024 net income was $165 million, a 28% decrease compared to net income of $230 million in the same period of 2023. Adjusted first quarter 2024 net income was $171 million, a 27% decrease compared to adjusted net income of $233 million for the same period of 2023.
First Quarter-Over-Quarter Comparisons & First Quarter 2024 Performance Highlights:
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- Total revenues increased 23%
- New vehicle same store units grew by 3.6 %
- Total vehicle gross profit per unit of $4,346, down $1,239
- GreenCars monthly unique visitors (MUVs) increased by 71%
- Driveway Finance Corporation (DFC) originated approximately $493 million in loans
- Service, body, and parts revenues increased 24%
- Driveway and GreenCars burn-rate has been cut in half
“In the first quarter, our teams responded as the industry continued to normalize inventories and profitability. We are committed to driving improvements across our business,” said Bryan DeBoer, president and CEO. “Our model is diversified with our adjacencies maturing and on a path to profitability, as we continue to deliver the best experience for our customers. Responding to market conditions, we are rebalancing our capital allocation from acquisitions toward returns to our shareholders, with the long-term target of delivering $2 in EPS per billion in revenues.”
Corporate Development
During the first quarter, LAD completed the acquisition of Pendragon PLC’s Fleet Management and UK Motor Divisions in the United Kingdom and grew in the North Central region with the purchase of the Carousel Motor Group. Year-to-date, the company acquired over $5.4 billion in annualized revenues.
Balance Sheet Update
LAD ended the first quarter with approximately $1.3 billion in cash and cash equivalents, marketable securities, and availability on our revolving lines of credit. In addition, unfinanced real estate could provide additional liquidity of approximately $0.3 billion.
Dividend Payment & Share Repurchases
The board of directors approved a dividend of $0.53 per share related to first quarter 2024 financial results. The dividend is expected to be paid on May 24 to shareholders of record on May 10.
During April 2024, LAD repurchased approximately 58,000 shares at a weighted average price of $264.42. Under the current share repurchase authorization approximately $451.7 million remains available.
Click here to read the full release and view LAD’s non-GAAP reconciliation tables.
