Regardless of a drop in new-vehicle gross sales, Lithia Motors Inc.’s second-quarter internet revenue elevated.
The rising dealership group profited with greater used-vehicle gross sales and double-digit proportion good points in gross revenue per new car offered, finance and insurance coverage income and climbing common car promoting costs on new and used automobiles.
Web revenue jumped 11 p.c to $337.6 million, as income elevated 20 p.c to $7.2 billion, a second-quarter report, the Medford, Ore., retailer mentioned on Wednesday.
“The second quarter outcomes show the variety and power throughout our enterprise strains as we’ve got delivered the best quarterly revenues in our historical past,” Lithia CEO Bryan DeBoer said in a statement.
Whilst Lithia has expanded its dealership community by a brisk acquisition tempo, new-vehicles gross sales fell 8.5 p.c to 68,752. Used-vehicle gross sales, nonetheless, rose 15 p.c to 81,026.
Lithia, the nation’s second-largest new-vehicle retailer, mentioned the common promoting value for every new car jumped 13 p.c to $47,281,whereas the common promoting value per used car rose 21 p.c to $30,976.
The typical gross revenue per new car soared 43 p.c to $5,970 within the second quarter, whereas the common gross revenue per used car fell 11 p.c to $2,955.
Lithia additionally remained energetic within the dealership buy-sell market within the second quarter.
In April, Lithia sold a Honda store in Texas. In Could, the retailer purchased a Honda dealership close to Toronto and divested a Montana Subaru store.
On the finish of June, Lithia bought 10 dealerships in three transactions throughout Southern Florida and Nevada.
And final week, within the third quarter, Lithia bought a Ford store in Northern California.
Lithia’s second-quarter dealership acquisitions, together with the July acquisition, are anticipated to generate mixed annual income of $1.2 billion, the corporate mentioned.
The annual income from dealerships it has acquired up to now this yr reached $2.three billion, Lithia mentioned.
The retailer mentioned it has acquired dealerships representing $12.7 billion in annualized income since July 2020, when it revealed its five-year plan to reach $50 billion in annual revenue by 2025 — almost quadruple 2019’s income of $12.7 billion.
Lithia shares had been buying and selling down about three p.c midmorning to $286.27.
Q2 income: $7.2 billion, up 20 p.c from a yr earlier
Q2 internet revenue: $337.6 million, up 11 p.c from a yr earlier
Q2 adjusted revenue: $355 million, up 12 p.c from a yr earlier
Car gross sales: Lithia offered 149,778 automobiles, new and used, within the second quarter, up three p.c. On a same-store foundation, Lithia offered 119,023 new and used automobiles within the second quarter, down 14 p.c.
Information: Second-quarter income and earnings per share
Rating: Lithia ranks No. 2 on Automotive News‘ list of the top 150 dealership groups based in the U.S., retailing 260,738 new automobiles in 2021.