LITHIA REPORTS RECORD THIRD QUARTER 2018 RESULTS, INCREASES REVENUE 15%
DECLARES DIVIDEND OF $0.29 PER SHARE FOR THIRD QUARTER
Medford, Oregon, October 24, 2018 - Lithia Motors, Inc. (NYSE: LAD) today reported the highest third quarter revenue and earnings per share in company history.
Third quarter 2018 revenue increased 15% to $3.1 billion from $2.7 billion in the third quarter of 2017.
Third quarter 2018 net income per diluted share was $3.84, an 86% increase over $2.07 per diluted share reported in the third quarter of 2017. Adjusted third quarter 2018 net income per diluted share was $2.83, a 30% increase compared to adjusted net income of $2.18 per diluted share in the same period of 2017. Third quarter 2018 net income was $93 million, a 79% increase over $52 million reported in the third quarter of 2017. Adjusted third quarter 2018 net income was $69 million, a 25% increase compared to adjusted net income of $55 million for the same period of 2017.
As shown in the attached non-GAAP reconciliation tables, the 2018 third quarter adjusted results exclude a $1.01 net non-core benefit related to gains on dispositions and tax attributes. The 2017 third quarter adjusted results exclude a $0.11 net non-core charge related to acquisition expenses and storm insurance reserves.
Third Quarter-over-Quarter Operating Highlights:
Online traffic up 33% over prior year
Total revenues increased 15%
Total same store sales increased 1%
Adjusted SG&A as a percentage of gross profit was 69.6%
"We achieved record results in the third quarter driven by strong top line growth," said Bryan DeBoer, President and CEO. "Total revenue and gross profit both increased over 15%, and adjusted EPS grew 30%. We are seeing traction in realizing the over $250 million of store earnings potential as operations continue to season and stabilize. Our focus on innovation and diversification is producing results as evidenced by ongoing internal and external investment in digital initiatives."
For the first nine months of 2018, revenues increased 20% to $8.8 billion, compared to $7.4 billion in the first nine months of 2017.
Net income for the first nine months of 2018 was $8.31 per diluted share, compared to $6.19 per diluted share for the same period in 2017. Adjusted net income per diluted share for the first nine months of 2018 increased 19% to $7.41 from $6.24 for the first nine months of 2017.
Technology Partnerships and Corporate Development
As previously announced, during the third quarter, we launched a strategic partnership with Shift Technologies, a San Francisco-based digital retailer, committing $54 million to lead their series D fundraising round. Earlier this month, we announced Shift secured a credit line to acquire used vehicle inventory, providing the capacity to reach $1 billion in revenue. This successful operational collaboration resulted in Lithia receiving additional equity ownership in Shift.
Shift is an innovative platform that provides consumers a digital purchase and selling experience, providing vehicle pickup and delivery at a customer’s location. Shift currently operates throughout California and is the largest used car retailer in the San Francisco Bay Area. Our partnership allows both companies to share technology and scale infrastructure to expand into new markets and capture a dominant share of the $1 trillion U.S. retail vehicle market.
“We continue to expand our omni-channel capabilities,” said Bryan DeBoer, President and CEO. “The partnership with Shift is one example of the external innovation initiatives we are pursuing. It is both a strategic and a financial investment. Their proprietary technology platform is robust: it includes a seamless point of sale mobile application, which provides on-the-spot financing, bank payments, vehicle pricing, and contracting. Consumers can sell vehicles directly to Shift, and have them conveniently picked up
The following information was filed by Lithia Motors Inc (LAD) on Wednesday, October 24, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.