Lithia Motors, Inc. (NYSE: LAD) has acquired Downtown Los Angeles Auto
Group ("DTLA"), comprised of Audi, Mercedes-Benz, Nissan, Porsche,
Toyota, and Volkswagen stores located in downtown Los Angeles and a
Nissan store in nearby Carson. On a forecasted annualized basis, DTLA
can generate $1 billion in revenue and $0.55 in earnings per share. We
are increasing 2017 guidance to a range of $8.55 to $8.70 per share.
"We are pleased to continue our robust acquisition cadence of purchasing
strong assets with considerable upside," said Bryan DeBoer, President
and Chief Executive Officer. "These stores are located in the
fast-growing downtown area, within close proximity to the Staples Center
and L.A. Live, and are among the largest volume stores of their brands
in the nation." DeBoer added, "We are excited to partner with Elay Sung
and the entire Downtown LA team to accelerate their growth."
DTLA joins DCH, Carbone and the Baierl Auto Group to further diversify
Lithia and grow through sharing best practices, high-performing people
and innovative technology. Lithia is strengthening its omnichannel
retail strategy focused on expanding its customer base from coast to
coast.
"This opportunity deploys approximately half of the $300 million raised
in our recent senior notes offering," said DeBoer. He added, "The
remaining funds from the notes offering, our free cash flow and a
recently increased syndicated credit facility support our continued
growth cadence. Improving performance to realize the full potential of
our acquisitions achieves greenfield rates of return."
About Lithia
Lithia Motors, Inc. is one of the largest automotive retailers in the
United States and is among the fastest growing companies in the Fortune
500 (#318-2016) with 167 stores representing 30 brands in 18 states. We
offer vehicles online and through our nationwide retail network. Our
"Growth Powered by People" strategy drives us to innovate and
continuously improve the customer experience.
Sites
www.lithiamotors.com
www.lithiainvestorrelations.com
www.lithiacareers.com
Lithia Motors on Facebook
www.facebook.com/LithiaMotors
Lithia Motors on Twitter
http://twitter.com/lithiamotors
Forward-Looking Statements
This press release includes "forward-looking statements" within the
meaning the "Safe-Harbor" provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements include
statements regarding our goals, plans, projections and guidance
regarding our financial position, results of operations, market
position, pending and potential future acquisitions and business
strategy, and often contain words such as "project," "outlook,"
"expect," "anticipate," "intend," "plan," "believe," "estimate," "may,"
"seek," "would," "should," "likely," "goal," "strategy," "future,"
"maintain," "continue," "remain," "target" or "will," and similar
references to future periods.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170808005398/en/
Lithia Motors, Inc.
John North, 541-618-5748
Senior Vice
President and Chief Financial Officer
