Lithia Motors announced their highest quarterly adjusted net income in the company’s history, and an increase in adjusted net income from continuing operations of 29% for the same quarter last year, in its second quarter earnings today.
New vehicle retail revenues were up 21.9%, used car sales were up 20.1%, and F&I increased 28.1% from the same time last year.
“For the first time in our history, same store sales experienced double digit increases in all four business lines,” Bryan DeBoer, Lithia president and chief executive, said in a press release. “The monthly SAAR accelerated throughout the second quarter, reaching a level of 16.9 million in June, the highest level since July 2006.”
Lithia ended the second quarter with $28 million in cash and $84 million available in its credit facilities. Additionally, approximately $216 million of its operating real estate is currently unfinanced, which could provide an estimated additional $162 million in available liquidity, for total potential liquidity of $274 million, according to the filing.
In June Lithia announced that it had entered into a definitive agreement to acquire 100% of DCH Auto Group’s stores; a deal that will close in the fourth quarter and is estimated to generate approximately $2.3 billion in annualized revenue.
“The acquisition market remains robust. We purchased another three stores in the second quarter of 2014, bringing the total number of stores purchased or opened this year to eight,” DeBoer said in the release. “Additionally we continue to seek stores reflecting Lithia’s exclusive market strategy and believe the potential remains for more acquisitions in 2014.”
Lithia Motor’s, headquartered in Medford, OR, is one of the top ten largest dealership groups in the US, with 101 stores in 12 states.
