Lithia Motors(LAD) - 2024 Q4 - Annual Results

Revenue Performance - Fourth quarter 2024 revenue reached a record $9.2 billion, a 20$7.7 billion in the fourth quarter of 2023[3]. - Full year 2024 revenue increased 17% to a record $36.2 billion from$31.0 billion in 2023[7]. - Total revenues for Q4 2024 reached $9,222.1 million, a 20.2$7,674.5 million in Q4 2023[23]. - Total revenues for the three months ended December 31, 2024, increased by 3.1% to $7,854.3 million compared to$7,615.4 million in 2023[25]. Earnings and Profitability - Fourth quarter 2024 diluted earnings per share attributable to Lithia & Driveway was $8.12, a 5$7.74 per share in the same period of 2023[4]. - The company reported a flat net income of $217 million for the fourth quarter 2024, compared to$216 million in the same period of 2023[5]. - Net income attributable to LAD for Q4 2024 was $216.2 million, a 1.3$213.4 million in Q4 2023[23]. - Net income for the twelve months ended December 31, 2024, was $821.6 million, down from$1,011.7 million in 2023[29]. - The company’s net income attributable to LAD for the twelve months ended December 31, 2024, was $802.0 million, down from$1,000.8 million in 2023, a decline of 20%[32]. Expenses and Margins - SG&A expenses as a percentage of revenue decreased to 9.9% in Q4 2024 from 10.7% in Q4 2023[24]. - Total selling, general and administrative expenses for the twelve months ended December 31, 2024, were $3,755.2 million, an increase from$3,294.8 million in 2023, reflecting a growth of 13.9%[32]. - The gross profit margin for new vehicle retail dropped by 240 basis points to 6.8% for the twelve months ended December 31, 2024[25]. Vehicle Sales - New vehicle retail unit sales increased by 20.1% to 96,760 units in Q4 2024, compared to 80,596 units in Q4 2023[24]. - New vehicle retail revenues increased by 18.4% to $4,705.9 million, while used vehicle retail revenues rose by 16.4$2,638.5 million[23]. - New vehicle retail revenues rose by 6.3% to $4,200.5 million, while used vehicle retail revenues decreased by 5.8$2,119.0 million for the same period[25]. Financing and Debt - Driveway Finance Corporation originated $501 million in loans, with a portfolio of$3.9 billion in average managed receivables and a net interest margin of 4.7%[9]. - Total debt increased by 21.7% to $13,265.7 million from$10,900.5 million[34]. - Net debt rose by 28.7% to $4,142.2 million compared to$3,219.1 million[34]. - Floor plan notes payable increased by 34.9% to $4,903.1 million from$3,635.5 million[34]. Cash and Liquidity - The company ended the fourth quarter with approximately $1.4 billion in cash and cash equivalents, plus$0.3 billion in unfinanced real estate liquidity[12]. - Cash, restricted cash, and cash equivalents at the end of the period decreased to $445.8 million from$972.0 million in 2023[29]. - Unrestricted cash and cash equivalents decreased by 72.7% to $225.1 million from$825.0 million[34]. Shareholder Returns - The Board of Directors approved a dividend of 0.53 per share for the fourth quarter 2024, payable on March 21, 2025[13]. - Lithia & Driveway repurchased approximately 1,230,000 shares in 2024, representing 4.6% of shares outstanding[17]. Other Financial Metrics - The financing operations achieved their first profitable year with an income of 15.4 million, compared to a loss of $45.9 million in 2023[17]. - Adjusted EBITDA for the three months ended December 31, 2024, was$419.0 million, representing a 5.4% increase from $397.6 million in the same period of 2023[33]. - The average gross profit per unit for new vehicle retail decreased by 26.4$3,263 for the twelve months ended December 31, 2024[25].