Lithia Motors, Inc. (NYSE:LAD) Q3 2023 Results Conference Call October 25, 2023 10:00 AM ET

Company Participants

Amit Marwaha - Director of Investor Relations

Bryan DeBoer - President and CEO

Chris Holzshu - Executive Vice President and COO

Tina Miller - Senior Vice President and CFO

Chuck Lietz - Senior Vice President of Driveway Finance

Conference Call Participants

Daniel Imbro - Stephens

John Murphy - Bank of America

Rajat Gupta - JPMorgan

Ryan Sigdahl - Craig-Hallum

Ron Josey - Citi

Colin Langan - Wells Fargo

David Whiston - Morningstar

Operator

Good morning. And welcome to the Lithia & Driveway Third Quarter 2023 Conference Call [Operator Instructions].

I would now like to turn the call over to your host, Amit Marwaha, Director of Investor Relations. You may now begin.

Amit Marwaha

Thank you for joining us for our third quarter earnings call for 2023. With me today are Bryan DeBoer, President and CEO; Chris Holzshu, Executive Vice President and COO; Tina Miller, Senior Vice President and CFO; and Chuck Lietz, Senior Vice President of Driveway Finance.

Today's discussion may include statements about future events, financial projections and expectations about the company's products, markets and growth. Such statements are forward-looking and subject to risks and uncertainties that could cause actual results to materially differ from the statements made. We disclose those risks and uncertainties we deem to be material in our filings with the Securities and Exchange Commission. We urge you to carefully consider these disclosures and not to place undue reliance on forward-looking statements. We undertake no duty to update any forward-looking statements, which are made as of the date of this release. Our results discussed today include references to non-GAAP financial measures. Please refer to the text of today's press release for a reconciliation of comparable GAAP measures. We have also posted an updated investor presentation on our Web site, investors.lithiadriveway.com highlighting our third quarter results.

With that, I would like to turn the call over to Bryan DeBoer, President and CEO.

Bryan DeBoer

Thanks, Amit. Good morning, and welcome to our third quarter earnings call. We appreciate everyone joining us today and the opportunity to update you on our business, growth initiatives and progress towards our long-term strategies. In Q3, Lithia & Driveway grew revenues to $8.3 billion, up 13% from Q3 of 2022, resulting in adjusted diluted earnings per share of $9.25. Overall same store sales momentum improved sequentially, led by new vehicle units up 5% and aftersales revenues up over 4%. Sequentially, GPUs were in line with our expectations for both new and used vehicles, while F&I margins remained resilient. Year-to-date, GPUs for the new vehicles have come down approximately $100 per month or down 19% from the end of 2022. We are well supplied with new vehicles and parts to meet customer demand across the domestic brands throughout year end. Our teams are driving both growth and profitability while we focus on continuous gains in efficiency across vehicle operations, DFC and our other adjacencies. Our business model is flexible and diversified, giving our store teams the tools and autonomy to adjust with local market dynamics and manufacturers. Our goal is to provide customers with a wide variety of products and services and access to solutions that fit their needs throughout the vehicle ownership life cycle. This allows us to create a culture that is responsive to varying needs and delivers the best possible experience for customers wherever, whenever and however they desire.