Lithia Motors Inc. Files 2023 Annual Report on Form 10-K

Ticker: LAD · Form: 10-K · Filed: 2024-02-23T00:00:00.000Z

Sentiment: neutral

Topics: 10-K, Lithia Motors, Automotive Retail, Financial Report, Fiscal Year 2023

TL;DR

<b>Lithia Motors Inc. filed its 2023 10-K report detailing financial performance and operational data.</b>

AI Summary

LITHIA MOTORS INC (LAD) filed a Annual Report (10-K) with the SEC on February 23, 2024. Lithia Motors Inc. reported its 2023 fiscal year results in a 10-K filing. The filing covers the period ending December 31, 2023. The company is incorporated in Oregon and operates in the Auto Dealers & Gasoline Stations sector. Key financial data and segment revenues for 2023, 2022, and 2021 are included. The report details various financial statement line items and debt obligations.

Why It Matters

For investors and stakeholders tracking LITHIA MOTORS INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Lithia Motors' financial health and operational segments for the fiscal year 2023, crucial for investors assessing performance and future outlook. The detailed segment revenues and financial metrics allow for a year-over-year comparison, highlighting trends in new vehicle retail, used vehicle sales, and finance & insurance operations.

Risk Assessment

Risk Level: — LITHIA MOTORS INC shows moderate risk based on this filing. The company's financial performance is subject to the cyclical nature of the automotive industry and potential shifts in consumer demand, as indicated by the detailed segment revenues across new and used vehicles.

Analyst Insight

Investors should analyze the detailed segment revenues and financial metrics in the 10-K to understand Lithia Motors' performance drivers and potential risks in the evolving auto market.

Revenue Breakdown

SegmentRevenueGrowth
New Vehicle Retail
Used Retail Vehicle
Used Wholesale Vehicle
Finance And Insurance

Key Numbers

Key Players & Entities

FAQ

When did LITHIA MOTORS INC file this 10-K?

LITHIA MOTORS INC filed this Annual Report (10-K) with the SEC on February 23, 2024.

What is a 10-K filing?

A 10-K is a comprehensive annual financial report required by the SEC, covering audited financials, business operations, risk factors, and management discussion. This particular 10-K was filed by LITHIA MOTORS INC (LAD).

Where can I read the original 10-K filing from LITHIA MOTORS INC?

You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by LITHIA MOTORS INC.

What are the key takeaways from LITHIA MOTORS INC's 10-K?

LITHIA MOTORS INC filed this 10-K on February 23, 2024. Key takeaways: Lithia Motors Inc. reported its 2023 fiscal year results in a 10-K filing.. The filing covers the period ending December 31, 2023.. The company is incorporated in Oregon and operates in the Auto Dealers & Gasoline Stations sector..

Is LITHIA MOTORS INC a risky investment based on this filing?

Based on this 10-K, LITHIA MOTORS INC presents a moderate-risk profile. The company's financial performance is subject to the cyclical nature of the automotive industry and potential shifts in consumer demand, as indicated by the detailed segment revenues across new and used vehicles.

What should investors do after reading LITHIA MOTORS INC's 10-K?

Investors should analyze the detailed segment revenues and financial metrics in the 10-K to understand Lithia Motors' performance drivers and potential risks in the evolving auto market. The overall sentiment from this filing is neutral.

How does LITHIA MOTORS INC compare to its industry peers?

Lithia Motors operates within the automotive retail sector, which is characterized by sales of new and used vehicles, parts, and service, as well as finance and insurance products.

Are there regulatory concerns for LITHIA MOTORS INC?

As a publicly traded company, Lithia Motors is subject to SEC regulations and reporting requirements, including the annual filing of Form 10-K.

Industry Context

Lithia Motors operates within the automotive retail sector, which is characterized by sales of new and used vehicles, parts, and service, as well as finance and insurance products.

Regulatory Implications

As a publicly traded company, Lithia Motors is subject to SEC regulations and reporting requirements, including the annual filing of Form 10-K.

What Investors Should Do

  1. Review the detailed segment revenues for new and used vehicles to identify growth or decline trends.
  2. Analyze the company's debt structure and capital lease obligations as detailed in the filing.
  3. Examine any disclosed risk factors related to the automotive industry and consumer spending.

Key Dates

Year-Over-Year Comparison

This filing represents the annual 10-K for the fiscal year 2023, providing a comprehensive update compared to previous filings.

Filing Stats: 4,333 words · 17 min read · ~14 pages · Grade level 15.1 · Accepted 2024-02-23 17:14:27

Key Financial Figures

Filing Documents

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 7 Item 1B. Unresolved Staff Comments None Item 1C. Cybersecurity 19 Item 2.

Properties

Properties 20 Item 3.

Legal Proceedings

Legal Proceedings 20 Item 4. Mine Safety Disclosure s Not applicable PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 21 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations : 23 Results of operations 23 Liquidity and capital resources 37 Critical accounting estimates 41 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 43 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 44 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure None Item 9A.

Controls and Procedures

Controls and Procedures 44 Item 9B. Other Information None Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections Not applicable PART III Item 10. Directors, Executive Officers and Corporate Governance 45 Item 11.

Executive Compensation

Executive Compensation 45 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 45 Item 13. Certain Relationships and Related Transactions, and Director Independence 45 Item 14. Principal Accounting Fees and Services 45 PART IV Item 15. Exhibits and Financial Statement Schedules 46

Form 10-K Summary None

Item 16. Form 10-K Summary None SIGNATURES 49 PART I

Business

Item 1. Business As used in this Annual Report, the terms "Lithia," "Lithia and Driveway," "LAD," "the Company," "we," "us," and "our" refer collectively to Lithia Motors, Inc. and its subsidiaries, unless otherwise required by the context. Our store operations are conducted by our subsidiaries.

Forward-Looking Statements

Forward-Looking Statements Certain statements in this Annual Report, including in the sections entitled "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Business" constitute forward-looking statements within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Generally, you can identify forward-looking statements by terms such as "project," "outlook," "target," "may," "will," "would," "should," "seek," "expect," "plan," "intend," "forecast," "anticipate," "believe," "estimate," "predict," "potential," "likely," "goal," "strategy," "future," "maintain," and "continue" or the negative of these terms or other comparable terms. Examples of forward-looking statements in this Form 10-K include, among others, statements regarding: Future market conditions, including anticipated car and other sales levels and the supply of inventory Our business strategy and plans, including our achieving our 2025 Plan and related targets The growth, expansion, make-up, and success of our network, including our finding accretive acquisitions and acquiring additional stores Annualized revenues from acquired stores The growth and performance of our Driveway e-commerce home solution and Driveway Finance Corporation (DFC), their synergies and other impacts on our business and our ability to meet Driveway and DFC-related targets The impact of sustainable vehicles and other market and regulatory changes on our business Our capital allocations and uses and levels of capital expenditures in the future Expected operating results, such as improved store performance, continued improvement of selling, general and administrative expenses (SG&A) as a percentage of gross profit and any projections Our anticipated financial condition and liquidity, including from our cash and the future availability of our credit facilities, unfinanced real estate, and other financing sources Our continu

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