Acquisition activity
Lithia said it acquired nine stores in the fourth quarter; those locations were expected to generate more than $560 million in annual revenue for the retailer. During the same period, Lithia divested four dealerships representing a combined $160 million in annual revenue. In December, Lithia bought Glenn’s Freedom Chrysler-Dodge-Jeep-Ram in Lexington, Ky., southeast of Louisville. The retailer also purchased Ferrari of Denver, a dealership selling luxury and exotic brands, in December. In November, Lithia acquired Meador Chrysler-Dodge-Jeep-Ram, which it said is the second-largest CDJR store in the Dallas-Fort Worth region. In October, it bought Airstream Adventures, a collection of six RV stores on the West Coast.
In 2022 overall, Lithia acquired 31 stores representing a total of $3.5 billion in annual revenue. Lithia said that was offset by 13 sales representing $663 million in revenue.
The retailer noted that it acquired one store in February.
Lithia said it has now acquired dealerships representing $13.9 billion in annual revenue since July 2020, when it disclosed a five-year plan to reach $50 billion in annual revenue by 2025.
Lithia shares were trading down 5.9 percent at $264.59 mid-morning Wednesday.
Q4 revenue: $6.99 billion, up 11 percent from a year earlier
Q4 net income: $249.9 million, down 15 percent
Q4 adjusted net income: $251 million, down 28 percent
Q4 vehicle sales: 143,993 new and used vehicles, up 6.9 percent. Same-store sales of 127,312 new and used vehicles, down 3.2 percent.
2022 revenue: $28.23 billion, up 24 percent
2022 net income: $1.26 billion, up 19 percent
2022 adjusted net income: $1.27 billion, up 9 percent
2022 vehicle sales: 583,360 new and used vehicles, up 8.8 percent. Same-store sales of 472,415 new and used vehicles, down 7.9 percent.
Record: Full-year revenue
Ranking: Lithia ranked No. 2 on Automotive News‘ most recent list of the top 150 dealership groups based in the U.S., with retail sales of 260,738 new vehicles in 2021.
