Lithia Motors took another step during the first quarter toward reaching its goal of turning 75 used vehicles a month at each of its stores.

The dealer group reported on Thursday that it retailed 16,316 used vehicles during Q1, representing a 19.4-percent lift year-over-year. Selling the extra 2,655 used vehicles above the year-ago quarter’s total of 13,661 units meant Lithia stores averaged 55 used sales per month.

While Lithia moved more used metal in Q1, the company watched its gross margins on those used deals soften by 110 basis points year-over-year. The group’s gross margin on used retail sales in the first quarter settled at 13.5 percent, down from 14.6 percent a year earlier.

Nonetheless, the used-department retail sales improvement helped Lithia post the highest first-quarter adjusted net income level in company history as increased adjusted net income from continuing operations climbed 24 percent above the prior-year period.

Lithia said its Q1 adjusted net income from continuing operations came in at $27.1 million, or $1.03 per diluted share. That’s up from $21.9 million, or $0.84 per diluted share during the first quarter of last year.

The company’s unadjusted net income from continuing operations for the first quarter was $24.7 million, or $0.94 per diluted share, compared to $21.9 million or $0.84 per diluted share for the first quarter of last year.

The company’s Q1 revenue increased $175 million or 19 percent to $1.1 billion, up from $903 million for the first quarter of 2013.

Lithia mentioned several other year-over-year improvement highlights, including:

—Total same-store sales increased 12 percent.

—New-vehicle same store sales increased 10 percent.

—Service, body and parts same store sales increased 9 percent.

—Same store F&I per unit increased $84 to $1,200.

—Adjusted SG&A expense as a percentage of gross profit decreased 60 basis points to 68.5 percent.

“We grew same store sales in all four business lines in the first quarter,” Lithia president and chief executive officer Bryan DeBoer said. “Notably, we saw a 9-percent increase in service, body and parts sales driven by an 8-percent improvement in customer pay work and a 17-percent increase in warranty activity.

“March was a solid month for national new car sales with a SAAR of 16.3 million, the highest level since November 2007,” DeBoer continued. “March was also the best month in our company’s history in both revenue and pre-tax profit. Our store leaders increased same store used unit volume 12 percent in the quarter as we continue our objective to sell 75 used units per store per month.

“We believe opportunities remain for continued improvement and are optimistic for 2014,” he went on to say.