Benzinga | Aug 10, 2021 07:33AM EDT

Driveway Transacts 800 Units in July, a 45% Increase Month-Over-Month And LAD Expands Network with Open Points

Lithia & Driveway (NYSE:LAD) reported transaction volume acceleration and are exceeding mid-year projections. Driveway reported 800 transactions in the month of July, compared to 550 in June, a 45% increase month-over-month. The company is now pacing nearly 10,000 annual transactions and one large step closer to the year-end run rate target of 15,000.

"Our omni-channel approach is proving to be a welcome solution providing consumers choices of when, where and how they transact. With Driveway, we gain an incremental channel to reach consumers seeking a more convenient, shop, sell and service online and in-home experience. Driveway leverages our existing strengths of the network, inventory and personnel to a whole new level, translating into more sales and robust customer loyalty through our first national brand," said Bryan DeBoer, President and CEO of Lithia & Driveway.

In addition to Driveway's growing presence, LAD further expanded in one of the top markets in the United States with the addition of two new open points.

The addition of Grapevine Honda with new partner Jessie Armstead, former NFL NY Giants star linebacker, adds to the Dallas/Fort Worth market. Additionally, LAD purchased the newly opened Kia of Frisco location. With these additions, LAD's network in Texas totals 32 stores. "Our track record of high performance underpins our relationships with our manufacturer partners, and we appreciate their continued trust in our ability to meet customer needs and grow market share," said DeBoer.

LAD is outpacing its 5-Year Plan to achieve $50 billion in revenue and $50 in earnings per share (EPS) by 2025. Lithia & Driveway has acquired and opened $4.8 billion in total annualized revenues in 2021, achieving 41% of the network expansion portion of its 5-Year Plan. These purchases were financed using existing on-balance sheet capacity.