Lithia & Driveway (LAD) Expands Footprint in Florida and Nevada, Adding $950 Million in Annualized Revenue and Repurchases 1.9 Million Shares
MEDFORD, Ore., June 28, 2022 /PRNewswire/ -- Lithia & Driveway (NYSE: LAD) announced today they have expanded their south Florida footprint with the purchase of nine Lehman Auto World stores and two Esserman International stores in Miami-Dade County. Together, these eleven stores are projected to generate $850 million in annualized revenue.
LAD also announced their expansion in Las Vegas, Nevada, with the addition of Henderson Hyundai and Genesis. With this purchase, LAD becomes the sole owner of the Hyundai and Genesis stores in the greater metro area. This is LAD's eighth Las Vegas metro store purchase in the past year and adds a projected $100 million in annualized revenue.
"We are thrilled to welcome these teams to our Lithia & Driveway family," said Bryan DeBoer, Lithia & Driveway President and CEO. "The Lehman family has deep roots in south Florida, serving the community for over 86 years. Under its leadership, the stores have achieved a reputation for earning lifelong customers with their impeccable level of service."
The additions of Lehman Auto World, Esserman International, and Henderson Hyundai and Genesis bring LAD's total expected annualized revenue acquired in 2022 to over $2.1 billion. The company is pacing to exceed its 2025 Plan to reach $50 billion in revenue and more than $55 in EPS. These acquisitions were financed using existing on-balance sheet capacity.
Share Repurchase Activity
To date in the second quarter, we have repurchased approximately 1.9 million shares or approximately 6.5% of shares outstanding at a weighted average price of $284. To date in 2022, we have repurchased approximately 2.1 million shares at a weighted average price of $285. Under our current share repurchase authorization, approximately $116 million remains available.
"With our strong balance sheet and continued significant free-cash flows, we continue to successfully execute on our revenue 2025 Plan, while still opportunistically repurchasing a meaningful amount of shares, providing immediate shareholder return," said DeBoer.
About Lithia & Driveway (LAD):
LAD is a growth company focused on profitably consolidating the largest retail sector in North America through providing personal transportation solutions wherever, whenever, and however consumers desire.
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SOURCE Lithia Motors, Inc.