Lithia Motors Inc.'s first-quarter net income more than doubled, soaring 119 percent to $342 million as the expanding retailer saw increases in new-vehicle and used-vehicle sales, strong gross profit per vehicle and rising average vehicle selling prices.
Revenue for the Medford, Ore., retailer climbed 54 percent to $6.7 billion, a first-quarter record, Lithia said.
Lithia's new-vehicle and used-vehicle sales increased 23 percent in the first quarter. Lithia said the average selling price for a new vehicle was $47,146, up 16 percent, while the average selling price for a used vehicle was $30,323, a jump of 32 percent.
The average gross profit per unit on new vehicles more than doubled to $6,179 in the first quarter, Lithia said. The average gross profit per unit for used vehicles and finance and insurance also increased.
Lithia, which went on a dealership acquisition tear in 2021, made two acquisitions in the first quarter.
Lithia on Wednesday said the three-store Nevada deal will add an expected $400 million to its annual revenue. Lithia's first-quarter dealership acquisitions combined are expected to generate annual revenue of $1.1 billion, the company said.
The retailer noted that it has acquired $11.5 billion in annualized revenue since July 2020, which is when it revealed its five-year plan to reach $50 billion in annual revenue by 2025 — nearly quadruple 2019's revenue of $12.67 billion.
Meanwhile, the group closed its BMW of Utica dealership in New York in January and sold Lithia Chrysler-Dodge-Jeep-Ram-Fiat of Santa Rosa in California in March. This month, Lithia divested of a Honda dealership in west-central Texas.
The group now has 267 dealerships in the U.S. and 13 in Canada.