Lithia Motors Inc., which has embarked on a dealer buying frenzy and kicked off the mega-offer parade in 2021, has not completed its purchases this year as it climbs towards its eventual goal of 500 stores in the United States.

After a busy third quarter in which Lithia’s combined dealer acquisitions – with purchases in Alabama, California, Texas, Georgia and international expansion through Pfaff Automotive Partners of Canada – are expected to generate annual revenue of $ 1.7 billion, the retailer made contracts worth almost the same amount. is expected to close in the fourth quarter.

“While several large contracts have been announced recently, the automotive retail industry remains very fragmented and unbound, with the market share of the top 10 groups being only around 10%,” said the CEO. of Lithia, Bryan DeBoer, during the company’s third quarter earnings call on Wednesday. “We have nearly $ 1.5 billion in annual revenue commitments as well as over $ 12 billion in reserve, which excludes large transactions from our peers.”

Tom Dobry, vice president of marketing at Lithia, said the group expects deals with expected annual revenue of $ 1.5 billion to be reached before the end of 2021, pending finalization. manufacturer approvals.

Lithia said it has acquired stores representing $ 6.2 billion in annualized revenue through acquisitions so far in 2021.

Lithia posted third-quarter net income of $ 307.9 million, almost double the $ 158.8 million earned a year earlier. Lithia had 209 dealers in the United States in 2020, but following the breaking of the ongoing acquisition, the group’s current number of stores is 265. The Medford, Oregon-based retailer’s revenue increased by 70 % to reach $ 6.17 billion.

“We ended the quarter with $ 1.7 billion in cash and available credit, which, if deployed to support network growth, could buy up to $ 6.8 billion in annualized revenue,” CFO Tina Miller said during the earnings call.


Previous

Emerging Trend Of Automotive Dealer Accounting Software Market, Global End User Demand And Forecast To 2028 | Intuit, Advanced Business Computers of America, Autosoft DMS, Autostar Solutions - Puck77

Next

Will car dealers adapt quickly enough to the age of electric cars?

Leave a Reply

Your email address will not be published.

Check Also