LITHIA MOTORS INC0001023128False00010231282024-02-142024-02-14

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

February 14, 2024
Date of Report (date of earliest event reported)
Lithia_Driveway_Combo_FINAL.jpg
Lithia Motors, Inc.
(Exact name of registrant as specified in its charter)
Oregon001-1473393-0572810
(State or other jurisdiction of incorporation or organization)(Commission File Number) (I.R.S. Employer Identification No.)
   
150 N. Bartlett StreetMedfordOregon97501
(Address of principal executive offices)(Zip Code)
(541) 776-6401
Registrant's telephone number, including area code
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock without par valueLADThe New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02. Results of Operations and Financial Condition

On February 14, 2024 Lithia Motors, Inc. issued a press release announcing financial results for the fourth quarter of 2023. A copy of the press release is attached as Exhibit 99.1

Item 8.01. Other Events

On February 14, 2024, Lithia Motors, Inc. announced a $0.50 per share cash dividend, to be paid on March 22, 2024 to shareholders of record as of March 9, 2024.

The information furnished in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the " Exchange Act"), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits
Press Release of Lithia Motors, Inc. dated February 14, 2024
104Cover Page Interactive Data File (embedded within the Inline XBRL document).


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Date: February 14, 2024LITHIA MOTORS, INC.
Registrant
By:/s/ Tina Miller
Tina Miller
Chief Financial Officer, Senior Vice President, and Principal Accounting Officer



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Lithia & Driveway (LAD) Reports Record Fourth Quarter Revenue of $7.7 billion, 10% Increase
________________________________________________

Announces Dividend of $0.50 per Share for Fourth Quarter

Medford, Oregon, February 14, 2024 - Lithia & Driveway (NYSE: LAD) today reported the highest fourth quarter revenue in company history.

Fourth quarter 2023 revenue increased 10% to $7.7 billion from $6.9 billion in the fourth quarter of 2022.

Fourth quarter 2023 net income attributable to LAD per diluted share was $7.74, a 14% decrease from $9.00 per diluted share reported in the fourth quarter of 2022. Adjusted fourth quarter 2023 net income attributable to LAD per diluted share was $8.24, a 9% decrease compared to $9.05 per diluted share in the same period of 2022. Unrealized foreign currency gains positively impacted earnings per share by $0.21.

Fourth quarter 2023 net income was $216 million, a 13% decrease compared to net income of $250 million in the same period of 2022. Adjusted fourth quarter 2023 net income was $230 million, a 8% decrease compared to adjusted net income of $251 million for the same period of 2022.

As shown in the attached non-GAAP reconciliation tables, the 2023 fourth quarter adjusted results exclude a $0.50 per diluted share impact resulting from non-core items, specifically acquisition expenses, investment loss, and net loss on sale of stores, partially offset by changes in insurance reserves. The 2022 fourth quarter adjusted results exclude a $0.05 per diluted share net non-core charge related to a net gain on the sale of stores, partially offset by investment loss, acquisition expenses and insurances reserves.

Fourth Quarter-Over-Quarter Comparisons and Fourth Quarter 2023 Performance Highlights:

•Total revenues increased 10%
•New vehicle same store units grew by 9.6 %
•Total vehicle gross profit per unit of $4,973, down $717
•Driveway averaged nearly 2.8 million monthly unique visitors (MUVs) in the quarter
•Driveway Finance Corporation (DFC) originated over $428 million in loans in Q4
•Service, body, and parts revenues increased 14%
•SG&A as a percentage of gross profit was 66.4%, and 65.2% adjusted for non-core items

“2023 completes another successful year of tremendous growth and building strategic diversification. My team and I are excited to turn our efforts to even higher levels of execution in 2024, as we now have all the key components of our long-term growth strategy in place,” said Bryan DeBoer, President and CEO. "Our financial position, combined with the diversity and reach of our network and complementary adjacencies, positions us to continue to positively drive results and return capital to our shareholders, providing a distinctive growth strategy.“

Full year 2023 revenue increased 10% to a record $31.0 billion from $28.2 billion in 2022.

Full year 2023 net income attributable to LAD per diluted share decreased 18% to $36.29 from $44.17 for 2022. Adjusted net income attributable to LAD per diluted share decreased 17% to $36.86 from $44.42 for 2022. Unrealized foreign currency gains positively impacted earnings per share by $0.14. Full year 2023 net income attributable to LAD decreased 20% to $1.0 billion from $1.3 billion for 2022. Adjusted net income attributable to LAD decreased 19% to $1.0 billion for 2023 from $1.3 billion for 2022.

As shown in the attached non-GAAP reconciliation tables, the 2023 adjusted results exclude a $0.57 per diluted share net non-core charge related to an investment loss, acquisition expenses, and insurance reserves, partially offset by a net gain on sale of


stores. The 2022 adjusted results exclude a $0.25 per diluted share impact resulting from non-core items, specifically acquisition expenses, one-time contract buyouts, insurance reserves, and investment loss, partially offset by a net gain on the sale of stores.

Full Year-over-Year and 2023 Operating Highlights:
•Record full year revenues of $31.0 billion
•Used vehicle retail sales increased 1.5%
•F&I per unit decreased 5.1% to $2,090
•Total vehicle gross profit per unit decreased 14.8% to $5,367
•GreenCars MUVs increased by 102% to nearly 900,000
•Driveway Finance Corporation scaled portfolio to over $3 billion

Corporate Development
During the fourth quarter, LAD did not acquire any stores. Year-to-date, we have acquired over $3.8 billion in annualized revenues. Since announcing our plan back in July 2020, we have acquired over $17.7 billion in annualized revenues.

Balance Sheet Update
LAD ended the fourth quarter with approximately $1.7 billion in cash and availability on our revolving lines of credit. In addition, unfinanced real estate could provide additional liquidity of approximately $0.4 billion.

Dividend Payment and Share Repurchases
The Board of Directors approved a dividend of $0.50 per share related to fourth quarter 2023 financial results. The dividend is expected to be paid on March 22, 2024 to shareholders of record on March 9, 2024.

During the fourth quarter and for 2023, we repurchased over 142,700 shares at a weighted average price of $240.81. Under the current share repurchase authorization approximately $467.0 million remains available.

Fourth Quarter Earnings Conference Call and Updated Presentation
The fourth quarter 2023 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 2023 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 one of the largest global automotive retailers providing a wide array of products and services throughout the vehicle ownership lifecycle. We offer convenient and hassle-free experiences through our comprehensive network of physical locations, e-commerce platforms, captive finance solutions 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 Twitter
https://twitter.com/lithiamotors
https://twitter.com/DrivewayHQ
https://twitter.com/GreenCarsHQ



Contact:
Tina Miller 
SVP and Chief Financial Officer
IR@lithia.com 
(541) 864-1748

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,” “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 levels and the supply of inventory
•Our business strategy and plans, including our achieving our 2025 Plan and related targets
•The growth, expansion, make-up and success of our network, including our finding accretive acquisitions and acquiring additional stores
•Annualized revenues from acquired stores
•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
•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 employee 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 regional or global public health issues, 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
•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 such as adjusted net income and diluted earnings per share, adjusted SG&A as a percentage of revenue and gross profit, adjusted operating margin, adjusted operating profit as a percentage of revenue and gross profit, adjusted pre-tax margin and net profit margin, EBITDA, adjusted EBITDA, leveraged EBITDA and adjusted total 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
Consolidated Statements of Operations (Unaudited)
(In millions except per share data)
Three months ended December 31,%Twelve months ended December 31,%
IncreaseIncrease
20232022(Decrease)20232022(Decrease)
Revenues:
New vehicle retail$3,974.8 $3,275.1 21.4 %$15,154.2 $12,894.5 17.5 %
Used vehicle retail2,267.5 2,228.1 1.8 9,570.2 9,425.0 1.5 
Used vehicle wholesale242.9 293.7 (17.3)1,325.3 1,425.2 (7.0)
Finance and insurance331.5 308.4 7.5 1,337.0 1,285.4 4.0 
Service, body and parts818.3 716.2 14.3 3,197.1 2,738.8 16.7 
Fleet and other39.4 125.0 (68.5)458.5 418.9 9.5 
Total revenues
7,674.4 6,946.5 10.5 %31,042.3 28,187.8 10.1 %
Cost of sales:
New vehicle retail3,660.5 2,910.9 25.8 13,760.1 11,314.8 21.6 
Used vehicle retail2,113.4 2,066.0 2.3 8,848.8 8,599.6 2.9 
Used vehicle wholesale251.8 309.1 (18.5)1,343.7 1,440.6 (6.7)
Service, body and parts368.0 329.9 11.5 1,445.7 1,275.8 13.3 
Fleet and other19.9 121.4 (83.6)415.1 404.6 2.6 
Total cost of sales6,413.6 5,737.3 11.8 25,813.4 23,035.4 12.1 
Gross profit1,260.8 1,209.2 4.3 %5,228.9 5,152.4 1.5 %
Financing operations loss
(2.1)(7.7)(72.7)%(45.9)(4.0)1,047.5 %
SG&A expense836.8 753.4 11.1 3,294.8 3,044.1 8.2 
Depreciation and amortization49.4 48.2 2.5 195.8 163.2 20.0 
Income from operations372.5 399.9 (6.9)%1,692.4 1,941.1 (12.8)%
Floor plan interest expense(48.3)(19.3)150.3 (150.9)(38.8)288.9 
Other interest expense(59.7)(38.3)55.9 (201.2)(129.1)55.8 
Other income (expense), net15.2 (6.1)NM22.0 (43.2)NM
Income before income taxes279.7 336.2 (16.8) %1,362.3 1,730.0 (21.3)%
Income tax expense (63.5)(86.3)(26.4)(350.6)(468.4)(25.1)
Income tax rate22.7 %25.7 %25.7 %27.1 %
Net income$216.2 $249.9 (13.5)%$1,011.7 $1,261.6 (19.8)%
Net income attributable to non-controlling interests(1.9)(0.9)111.1%(6.5)(4.8)35.4%
Net income attributable to redeemable non-controlling interest(0.8)(1.3)(38.5)%(4.4)(5.8)(24.1)%
Net income attributable to LAD$213.5 $247.7 (13.8)%$1,000.8 $1,251.0 (20.0)%
Diluted earnings per share attributable to LAD:
Net income per share$7.74 $9.00 (14.0) %$36.29 $44.17 (17.8)%
Diluted shares outstanding27.6 27.5 0.4  %27.6 28.3 (2.5)%
NM - not meaningful


LAD
Key Performance Metrics (Unaudited)
Three months ended December 31,%Twelve months ended December 31,%
IncreaseIncrease
20232022(Decrease)20232022(Decrease)
Gross margin
New vehicle retail7.9  %11.1 %(320)bps9.2 %12.3 %(310)bps
Used vehicle retail6.8 7.3 (50)7.5 8.8 (130)
Finance and insurance100.0 100.0 — 100.0 100.0 — 
Service, body and parts55.0 53.9 110 54.8 53.4 140 
Gross profit margin16.4 17.4 (100)16.8 18.3 (150)
Unit sales
New vehicle retail80,596 68,159 18.2  %314,116 271,596 15.7  %
Used vehicle retail78,424 75,834 3.4 325,764 311,764 4.5 
Average selling price
New vehicle retail$49,318 $48,051 2.6 %$48,244 $47,477 1.6 %
Used vehicle retail28,913 29,381 (1.6)29,378 30,231 (2.8)
Average gross profit per unit
New vehicle retail$3,899 $5,344 (27.0)%$4,438 $5,816 (23.7)%
Used vehicle retail1,965 2,137 (8.0)2,215 2,648 (16.4)
Finance and insurance2,084 2,142 (2.7)2,090 2,203 (5.1)
Total vehicle(1)
4,973 5,691 (12.6)5,367 6,300 (14.8)
Revenue mix
New vehicle retail51.8  %47.1  %48.8 %45.7 %
Used vehicle retail29.5 32.1 30.8 33.4 
Used vehicle wholesale3.2 4.2 4.3 5.1 
Finance and insurance, net4.3 4.4 4.3 4.6 
Service, body and parts10.7 10.3 10.3 9.7 
Fleet and other0.5 1.9 1.5 1.5 
Gross Profit Mix
New vehicle retail24.9  %30.1  %26.7  %30.7  %
Used vehicle retail12.2 13.4 13.8 16.0 
Used vehicle wholesale(0.7)(1.3)(0.4)(0.3)
Finance and insurance, net26.3 25.5 25.6 24.9 
Service, body and parts35.7 32.0 33.5 28.4 
Fleet and other1.6 0.3 0.8 0.3 
AdjustedAs reportedAdjustedAs reported
Three months ended December 31,Three months ended December 31,Twelve months ended December 31,Twelve months ended December 31,
Other metrics20232022202320222023202220232022
SG&A as a % of revenue10.7  %10.9  %10.9  %10.8  %10.6 %11.0 %10.6 %10.8 %
SG&A as a % of gross profit65.2 62.8 66.4 62.3 62.7 60.0 63.0 59.1 
Operating profit as a % of revenue5.1 5.7 4.9 5.8 5.5 6.7 5.5 6.9 
Operating profit as a % of gross profit30.7 32.5 29.5 33.1 32.7 36.8 32.4 37.7 
Pretax margin3.9 4.8 3.6 4.8 4.4 6.1 4.4 6.1 
Net profit margin3.0 3.6 2.8 3.6 3.3 4.5 3.3 4.5 
(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
Same Store Operating Highlights (Unaudited)
Three months ended December 31,%Twelve months ended December 31,%
IncreaseIncrease
20232022(Decrease)20232022(Decrease)
Revenues
New vehicle retail$3,548.1 $3,223.1 10.1  %$13,197.3 $12,562.0 5.1  %
Used vehicle retail1,954.2 2,191.6 (10.8)8,173.4 9,182.3 (11.0)
Finance and insurance309.0 304.5 1.5 1,205.0 1,253.9 (3.9)
Service, body and parts723.5 704.5 2.7 2,803.1 2,657.4 5.5 
Total revenues6,702.2 6,837.2 (2.0)26,708.4 27,454.4 (2.7)
Gross profit
New vehicle retail$279.3 $359.2 (22.2) %$1,205.3 $1,541.9 (21.8) %
Used vehicle retail134.4 159.3 (15.6)614.1 801.1 (23.3)
Finance and insurance309.0 304.5 1.5 1,205.0 1,253.9 (3.9)
Service, body and parts399.6 381.3 4.8 1,533.5 1,424.0 7.7 
Total gross profit1,119.6 1,192.6 (6.1)4,554.2 5,018.8 (9.3)
Gross margin
New vehicle retail7.9  %11.1  %(320)bps9.1 %12.3 %(320)bps
Used vehicle retail6.9 7.3 (40)7.5 8.7 (120)
Finance and insurance100.0 100.0 — 100.0 100.0 — 
Service, body and parts55.2 54.1 110 54.7 53.6 110 
Gross profit margin16.7 17.4 (70)17.1 18.3 (120)
Unit sales
New vehicle retail73,728 67,247 9.6  %272,780 264,510 3.1  %
Used vehicle retail69,854 74,550 (6.3)285,708 303,037 (5.7)
Average selling price
New vehicle retail$48,125 $47,929 0.4 %$48,381 $47,492 1.9 %
Used vehicle retail27,975 29,398 (4.8)28,607 30,301 (5.6)
Average gross profit per unit
New vehicle retail$3,789 $5,341 (29.1)%$4,419 $5,829 (24.2)%
Used vehicle retail1,925 2,137 (9.9)2,149 2,643 (18.7)
Finance and insurance2,152 2,147 0.2 2,158 2,209 (2.3)
Total vehicle(1)
4,980 5,697 (12.6)5,383 6,312 (14.7)
(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
Other Highlights (Unaudited)

Three months ended December 31,Twelve months ended December 31,
20232023
Key Performance by Region
Total Revenue
Total Gross Profit
Total Revenue
Total Gross Profit
United States
90%92%90%92%
United Kingdom
7%5%6%5%
Canada
3%3%4%3%
As of
December 31,December 31,December 31,
202320222021
Days Supply(1)
New vehicle inventory654724
Used vehicle inventory645561
(1) Days supply calculated based on current inventory levels, including in-transit vehicles, and a 30-day historical cost of sales level.

Selected Financing Operations Financial Information
Three months ended December 31,Twelve months ended December 31,
($ in millions)2023
% (1)
2022
% (1)
2023
% (1)
2022
% (1)
Interest margin:
Interest, fee, and lease income$78.2 9.5 $51.9 10.1 $268.5 9.6 $134.1 8.7 
Interest expense(45.0)(5.4)(28.9)(5.6)(170.5)(6.1)(52.2)(3.4)
Total interest margin$33.2 4.0 $23.0 4.5 $98.0 3.5 $81.9 5.3 
Provision expense$(23.8)(2.9)$(18.9)(3.7)$(98.8)(3.5)$(44.4)(2.9)
Financing operations income (loss)$(2.1)(0.3)$(7.7)(1.5)$(45.9)(1.6)$(4.0)(0.3)
Total average managed finance receivables$3,277.0 $2,039.2 $2,802.8 $1,542.6 
Ending funded managed receivables$2,895.8 $1,866.0 $2,895.8 $1,866.0 
% of ending managed receivables86.5%82.7%86.5%82.7%
(1)Annualized percentage of total average managed finance receivables


LAD
Condensed Consolidated Balance Sheets (Unaudited)
(In millions)
December 31, 2023December 31, 2022
Cash and restricted cash$941.4 $246.7 
Trade receivables, net1,123.1 813.1 
Inventories, net4,753.9 3,409.4 
Other current assets 136.8 161.7 
Total current assets$6,955.2 $4,630.9 
Property and equipment, net3,981.4 3,574.6 
Finance receivables, net3,242.3 2,187.6 
Intangibles4,332.8 3,316.9 
Other non-current assets 1,120.8 1,296.6 
Total assets$19,632.5 $15,006.6 
Floor plan notes payable3,635.5 2,116.6 
Other current liabilities1,296.7 1,061.6 
Total current liabilities$4,932.2 $3,178.3 
Long-term debt, less current maturities5,483.7 5,088.3 
Non-recourse notes payable, less current maturities1,671.7 422.2 
Other long-term liabilities and deferred revenue1,262.0 1,066.7 
Total liabilities$13,349.6 $9,755.5 
Equity6,282.9 5,251.1 
Total liabilities & equity$19,632.5 $15,006.6 



LAD
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)
Twelve months ended December 31,
Cash flows from operating activities:20232022
Net income$1,011.7 $1,261.6 
Adjustments to reconcile net income to net cash used in operating activities
329.1 337.5 
Changes in:
Inventories(863.5)(923.0)
Finance receivables, net(1,045.5)(1,363.0)
Floor plan notes payable, net363.7 273.3 
Other operating activities(267.9)(196.5)
Net cash used in operating activities(472.4)(610.1)
Cash flows from investing activities:
Capital expenditures(230.2)(303.1)
Cash paid for acquisitions, net of cash acquired(1,185.1)(1,243.6)
Proceeds from sales of stores142.9 212.1 
Other investing activities2.1 4.8 
Net cash used in investing activities(1,270.3)(1,329.8)
Cash flows from financing activities:
Net borrowings on floor plan notes payable, non-trade878.7 737.9 
Net borrowings non-recourse notes payable
1,283.4 104.6 
Net borrowings (repayments) of other debt and finance lease liabilities
358.3 1,914.2 
Proceeds from issuance of common stock29.7 36.1 
Repurchase of common stock(48.9)(688.3)
Dividends paid(52.8)(45.2)
Other financing activity(38.6)(23.4)
Net cash provided by financing activities2,409.8 2,035.9 
Effect of exchange rate changes on cash and restricted cash33.4 (3.0)
Change in cash and restricted cash700.5 93.0 
Cash and restricted cash at beginning of period271.5 178.5 
Cash and restricted cash at end of period972.0 271.5 


LAD
Reconciliation of Non-GAAP Cash Flow from Operations (Unaudited)
(In millions)
Twelve months ended December 31,
Net cash provided by operating activities20232022
As reported$(472.4)$(610.1)
Floor plan notes payable, non-trade, net878.7 737.9 
Adjust: finance receivables activity1,045.5 1,363.0 
Less: Borrowings on floor plan notes payable, non-trade associated with acquired new vehicle inventory(109.2)(116.5)
Adjusted$1,342.6 $1,374.3 



LAD
Reconciliation of Certain Non-GAAP Financial Measures (Unaudited)
(In millions, except for per share data)

Three Months Ended December 31, 2023
As reportedNet disposal loss on sale of storesInvestment lossInsurance reservesAcquisition expensesContract buyoutsAdjusted
Selling, general and administrative$836.8 $(0.2)$— $1.7 $(16.6)$— $821.7 
Operating income372.5 0.2 — (1.7)16.6 — 387.6 
Other income (expense), net15.2 — 1.9 — — — 17.1 
Income before income taxes279.7 0.2 1.9 (1.7)16.6 — 296.7 
Income tax (provision) benefit(63.5)(0.3)(4.0)0.5 0.6 — (66.7)
Net income$216.2 $(0.1)$(2.1)$(1.2)$17.2 $— $230.0 
Net income attributable to non-controlling interests(1.9)— — — — — (1.9)
Net income attributable to redeemable non-controlling interest(0.8)— — — — — (0.8)
Net income attributable to LAD$213.5 $(0.1)$(2.1)$(1.2)$17.2 $— $227.3 
Diluted earnings per share attributable to LAD$7.74 $— $(0.08)$(0.04)$0.62 $— $8.24 
Diluted share count27.6 

Three Months Ended December 31, 2022
As reportedNet disposal gain on sale of storesInvestment lossInsurance reservesAcquisition expensesAdjusted
Selling, general and administrative$753.4 $16.4 $— $(4.9)$(5.0)$759.9 
Operating income399.9 (16.4)— 4.9 5.0 393.4 
Other income (expense), net(6.1)— 6.5 — — 0.4 
Income before income taxes336.2 (16.4)6.5 4.9 5.0 336.2 
Income tax (provision) benefit(86.3)5.9 — (1.3)(3.5)(85.2)
Net income$249.9 $(10.5)$6.5 $3.6 $1.5 $251.0 
Net income attributable to non-controlling interests$(0.9)$— $— $— $— $(0.9)
Net income attributable to redeemable non-controlling interest$(1.3)$— $— $— $— $(1.3)
Net income attributable to LAD$247.7 $(10.5)$6.5 $3.6 $1.5 $248.8 
Diluted earnings per share attributable to LAD$9.00 $(0.38)$0.24 $0.13 $0.06 $9.05 
Diluted share count27.5 



LAD
Reconciliation of Certain Non-GAAP Financial Measures (Unaudited)
(In millions, except for per share data)

Twelve Months Ended December 31, 2023
As reportedNet disposal gain on sale of storesInvestment lossInsurance reservesAcquisition expensesContract buyoutsAdjusted
Selling, general and administrative$3,294.8 $31.2 $— $(5.4)$(27.2)$(14.3)$3,279.1 
Operating income1,692.4 (31.2)— 5.4 27.2 14.3 1,708.1 
Other income (expense), net22.0 — 1.7 — — — 23.7 
Income before income taxes1,362.3 (31.2)1.7 5.4 27.2 14.3 1,379.7 
Income tax (provision) benefit(350.6)8.2 (4.0)(1.4)(1.0)(3.8)(352.6)
Net income$1,011.7 $(23.0)$(2.3)$4.0 $26.2 $10.5 $1,027.1 
Net income attributable to non-controlling interests(6.5)— — — — — (6.5)
Net income attributable to redeemable non-controlling interest(4.4)— — — — — (4.4)
Net income attributable to LAD$1,000.8 $(23.0)$(2.3)$4.0 $26.2 $10.5 $1,016.2 
Diluted earnings per share attributable to LAD$36.29 $(0.83)$(0.08)$0.15 $0.95 $0.38 $36.86 
Diluted share count27.6 

Twelve Months Ended December 31, 2022
As reportedNet disposal gain on sale of storesInvestment lossInsurance reservesAcquisition expensesAdjusted
Selling, general and administrative$3,044.1 $66.0 $— $(4.9)$(15.0)$3,090.2 
Operating income1,941.1 (66.0)— 4.9 15.0 1,895.0 
Other income (expense), net(43.2)— 39.2 — — (4.0)
Income before income taxes1,730.0 (66.0)39.2 4.9 15.0 1,723.1 
Income tax (provision) benefit(468.4)19.1 — (1.3)(4.0)(454.6)
Net income$1,261.6 $(46.9)$39.2 $3.6 $11.0 $1,268.5 
Net income attributable to non-controlling interests(4.8)— — — — (4.8)
Net income attributable to redeemable non-controlling interest(5.8)— — — — (5.8)
Net income attributable to LAD$1,251.0 $(46.9)$39.2 $3.6 $11.0 $1,257.9 
Diluted earnings per share attributable to LAD$44.17 $(1.65)$1.38 $0.13 $0.39 $44.42 
Diluted share count28.3 




LAD
Adjusted EBITDA and Net Debt to Adjusted EBITDA (Unaudited)
(In millions)
Three months ended December 31,%Twelve months ended December 31,%
IncreaseIncrease
20232022(Decrease)20232022(Decrease)
EBITDA and Adjusted EBITDA
Net income$216.2 $249.9 (13.5) %$1,011.7 $1,261.6 (19.8) %
Flooring interest expense48.3 19.3 150.3 150.9 38.8 288.9 
Other interest expense59.7 38.3 55.9 201.2 129.1 55.8 
Financing operations interest expense45.0 28.9 55.7 170.5 52.2 226.6 
Income tax expense63.5 86.3 (26.4)350.6 468.4 (25.1)
Depreciation and amortization49.4 48.2 2.5 195.8 163.2 20.0 
Financing operations depreciation expense2.1 2.5 (16.0) %8.4 9.5 (11.6) %
EBITDA$484.2 $473.4 2.3  %$2,089.1 $2,122.8 (1.6) %
Other adjustments:
Less: flooring interest expense$(48.3)$(19.3)150.3 $(150.9)$(38.8)288.9 
Less: financing operations interest expense(45.0)(28.9)55.7(170.5)(52.2)226.6
Less: used vehicle line of credit interest(8.4)(4.7)78.7(19.6)(9.6)104.2
Add: acquisition expenses16.6 5.0 232.0 27.2 15.0 81.3 
Less: loss (gain) on divestitures
0.2 (16.4)NM(31.2)(66.0)NM
Add: investment loss
1.9 6.5 NM1.7 39.2 NM
Add: insurance reserves(1.7)4.9 NM5.4 4.9 NM
Add: contract buyouts
— — NM14.3 — NM
Adjusted EBITDA$399.5 $420.5 (5.0)%$1,765.5 $2,015.3 (12.4)%
NM - not meaningful



As of%
December 31,Increase
Net Debt to Adjusted EBITDA20232022(Decrease)
Floor plan notes payable: non-trade$2,288.5 $1,489.4 53.7 %
Floor plan notes payable1,347.0 627.2 114.8 
Used and service loaner vehicle inventory financing facility902.8 877.2 2.9
Revolving lines of credit1,620.7 927.6 74.7
Warehouse facilities587.0 930.0 (36.9)
Non-recourse notes payable1,705.6 422.2 304.0 
4.625% Senior notes due 2027400.0 400.0 — 
4.375% Senior notes due 2031550.0 550.0 — 
3.875% Senior notes due 2029800.0 800.0 — 
Finance leases and other debt730.7 653.1 11.9 
Unamortized debt issuance costs(31.8)(29.2)8.9 
Total debt$10,900.5 $7,647.5 42.5 %
Less: Floor plan related debt$(4,538.3)$(2,993.8)51.6 %
Less: Financing operations related debt(2,292.6)(1,352.2)69.5 
Less: Unrestricted cash(825.0)(168.1)390.8 
Less: Availability on used vehicle and service loaner financing facilities(25.5)(18.4)38.6 
Net Debt$3,219.1 $3,115.0 3.3 %
TTM Adjusted EBITDA$1,765.5 $2,015.3 (12.4)%
Net debt to Adjusted EBITDA1.82 x1.55 x
NM - not meaningful

v3.24.0.1
Cover
Feb. 14, 2024
Entity Information [Line Items]  
Document Type 8-K
Document Period End Date Feb. 14, 2024
Entity Registrant Name LITHIA MOTORS INC
Entity Incorporation, State or Country Code OR
Entity File Number 001-14733
Entity Tax Identification Number 93-0572810
Entity Address, Address Line One 150 N. Bartlett Street
Entity Address, City or Town Medford
Entity Address, State or Province OR
Entity Address, Postal Zip Code 97501
City Area Code 541
Local Phone Number 776-6401
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common stock without par value
Trading Symbol LAD
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0001023128
Amendment Flag false
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