MEDFORD, Ore., Nov. 30, 2021 /PRNewswire/ -- Lithia &
Driveway (NYSE:LAD) announced today an increase of $750 million to its share repurchase
authorization by its Board of Directors, bringing total funds
available today for future repurchases to approximately
$885 million.
"As discussed in our last earnings call, strong earnings have
generated greater than expected free cash flows, which allows us to
return capital to our shareholders through share repurchases, while
preserving the liquidity necessary to achieve our 2025 Plan," said
Bryan DeBoer, Lithia & Driveway
President and CEO. "Our capital allocation remains focused on
acquisitions and internal investments, such as Driveway and
Driveway Finance, to generate the highest long-term return for
shareholders."
Inaugural Asset-Backed Securities (ABS) Offering for Driveway
Finance
Driveway Finance completed its inaugural issuance of securities
backed by its originated auto loan portfolio, raising $344 million of additional capital to fund the
rapid growth of its auto loan portfolio and network
development.
"Driveway Finance received better than expected pricing and
credit ratings, which was exciting for our first issuance," said
DeBoer. "Planned future reoccurring ABS issuances, will enable us
to more quickly ramp the volume of originations and accelerate the
profit contributed by Driveway Finance in the coming years as we
seek to derive more than $1 dollar in
EPS for each billion dollars in revenue."
Driveway Finance originations now account for approximately 5%
of LAD's overall business and is expected to grow to 15% in the
coming years. This growing income stream further diversifies LAD's
business model, expands profitability, and enhances consumer
loyalty with Lithia stores, Driveway and GreenCars brands.
About Lithia & Driveway (LAD):
LAD is a growth company powered by people and innovation with a
plan to profitably consolidate the largest retail sector in North
America. As the leading provider of personal transportation
solutions in North America, 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, LAD builds 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. LAD continues to lead the
industry's consolidation, and this combined with Driveway's
e-commerce in-home experiences, further accelerates 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.lithiainvestorrelations.com
www.lithia.com
www.driveway.com
www.lithiacareers.com
Lithia & Driveway on Facebook
https://www.facebook.com/LithiaMotors
https://www.facebook.com/DrivewayHQ
Lithia & Driveway on Twitter
https://twitter.com/LithiaMotors
https://twitter.com/DrivewayHQ
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SOURCE Lithia Motors, Inc.