NYSE$LAD

Lithia Motors Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Lithia & Driveway reported record first quarter performance with revenue increased by 54%, EPS by 99%, and adjusted EPS by 103%.

Lithia & Driveway (LAD) reported a record first quarter with a 54% increase in revenue, a 99% increase in EPS, and a 103% increase in adjusted EPS. The company's Driveway platform reached 1 million monthly unique visitors, and Driveway Finance became the #1 lender to LAD customers.

  • Revenues increased 54.4%.
  • New vehicle retail revenues increased 39.6%.
  • Used vehicle retail revenues increased 65.2%.
  • Driveway reached 1 million monthly unique visitors.

Headline financials

Total Revenue

$6.71B

Previous: $4.34B+54.4%
EPS (adj)

$11.96

Previous: $5.89+103.1%
New Vehicle Units Sold

64.9K

Previous: 53.9K+20.6%
Used Vehicle Retail Units

73.7K

Previous: 59.0K+24.8%
New Vehicle Avg Price

$47.1K

Previous: $40.7K+15.8%
Used Vehicle Avg Price

$30.3K

Previous: $22.9K+32.4%
New Vehicle Avg Gross Profit

$6.18K

Previous: $2.91K+112.3%
Used Vehicle Avg Gross Profit

$3.04K

Previous: $2.31K+31.6%
F&I Avg Gross Profit

$2.26K

Previous: $1.76K+28.6%
Total Vehicle Avg Gross Profit

$6.83K

Previous: $4.39K+55.4%
Capital Expenditures

-$60.7M

Previous: -$50M-21.4%
Free Cash Flow

$282M

Previous: $106M+165.1%
Net Income

$342M

Previous: $156M+119.1%
Operating Income

$513M

Previous: $238M+115.2%
Gross Profit

$1.28B

Previous: $716M+78.6%
Cash & Equivalents

$132M

Previous: $170M-22.7%
Total Assets

$12.1B

Previous: $8.25B+46.4%
Stock-Based Comp

$10.5M

Previous: $8M+31.3%

Revenue & EPS history

Lithia Motors · Revenue · Quarterly

$6.71B

Q1 2022+54.4%vs Q1 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Lithia Motors · $6.24B total across 4 segments · Q1 2022

  • New Vehicle Retail
    $3.06B+39.6%
  • Used Vehicle Retail
    $2.23B+65.2%
  • Aftersales
    $628M+55.4%
  • Finance & Insurance
    $313M+57.9%

Forward guidance

LAD recently acquired three Stellantis stores in Las Vegas, diversifying their brand mix in that growing market. Collectively the stores are expected to generate $400 million in annualized revenues. Year-to-date, LAD has acquired $1.1 billion in annualized revenues and since the announcement of the 2025 Plan in July 2020, they have acquired $11.5 billion in annualized revenues.

Tailwinds

  • Strong results across all channels.
  • Significant free cash flows generated.
  • Driveway achieved impressive milestones.
  • DFC achieved impressive milestones.
  • Ability to quickly integrate acquired businesses.

Headwinds

  • Future national and local economic and financial conditions, including as a result of the COVID-19 pandemic, inflation and governmental programs and spending
  • The market for dealerships, including the availability of stores to us for an acceptable price
  • Changes in customer demand, our relationship with, and the financial and operational stability of, OEMs and other suppliers
  • 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

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+1.3%

Avg return

Earnings day

+2.3%

Avg return

5 days after

+1.4%

Avg return

30 days after

49%

32 / 65 earnings

Positive

+26.2%

Q2 2020

Best reaction

-11.7%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.1%+1.6%+4.8%
Q4 2025-1.9%-7.7%-22.0%
Q3 2025-1.2%+3.2%-3.0%
Q1 2025-5.8%-1.6%+5.4%
Q4 2024+4.6%+3.0%-19.8%
Q3 2024+10.1%+11.4%+28.3%
Q2 2024+5.0%+1.3%+9.0%
Q1 2024-2.6%-1.2%-3.1%
Q4 2023+2.0%-2.2%-5.5%
Q3 2023-2.5%-2.8%+8.3%
Q2 2023+5.4%+6.2%+3.0%
Q1 2023-2.3%-0.5%-0.1%
Q4 2022-6.5%-4.2%-25.5%
Q3 2022-11.7%-6.7%+9.9%
Q2 2022-8.2%-13.6%-8.9%
Q1 2022-4.7%-5.3%-7.9%
Q4 2021+4.2%+3.4%+7.2%
Q3 2021-0.4%-0.8%-14.0%
Q2 2021+5.6%+4.8%-7.6%
Q1 2021+2.0%+3.3%-4.4%
Q4 2020+6.2%+12.1%+11.3%
Q3 2020-3.8%-7.2%+8.3%
Q2 2020+26.2%+29.6%+49.6%
Q1 2020+11.1%+21.5%+35.2%
Q4 2019-6.6%-6.5%-31.9%
Q3 2019+18.4%+20.6%+23.2%
Q2 2019+15.4%+14.4%+7.4%
Q1 2019+12.7%+16.5%+19.0%
Q4 2018-2.9%+1.9%+1.8%
Q3 2018+18.9%+17.7%+8.0%
Q2 2018-9.6%-7.2%-8.8%
Q1 2018-2.6%-3.7%-1.9%
Q4 2017-5.8%-5.9%-10.0%
Q3 2017-5.9%-3.7%-1.6%
Q2 2017+3.2%-1.1%+3.0%
Q1 2017+11.1%+11.1%+7.7%
Q4 2016-3.3%-1.5%-9.3%
Q3 2016-7.0%-9.2%-8.7%
Q2 2016+3.5%-1.0%-3.3%
Q1 2016-11.2%
Q4 2015+8.1%
Q3 2015+6.5%
Q2 2015+4.0%
Q1 2015+2.4%
Q4 2014+3.2%
Q3 2014+3.9%
Q2 2014+5.3%
Q1 2014+1.9%
Q4 2013+4.0%
Q3 2013-6.3%
Q2 2013+0.0%
Q1 2013+6.6%
Q4 2012-7.1%
Q3 2012-7.3%
Q2 2012+6.9%
Q1 2011-1.1%
Q1 2012+8.5%
Q2 2011-1.5%
Q4 2010-1.5%
Q4 2011-1.5%
Q4 2009-1.5%
Q3 2010-7.4%
Q3 2011-7.4%
Q2 2010-0.2%
Q1 2010+5.1%

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