Lithia Motors appears well on its way to hitting its annual projection of a 9.5-percent jump in used-vehicle sales thanks to the lift, especially in same-store performance, the dealer group posted during the first quarter.

Lithia reported this week that its Q1 used-vehicle retail same-store sales increased 12 percent year-over-year during a quarter that saw the dealer group generate the highest first-quarter adjusted net income in company history.

All told, Lithia stores turned 27,431 used vehicles in Q1, up 13.3 percent from the year-ago figure of 24,202 units.

Like many dealers are experiencing, too, Lithia watched its gross profit per used vehicle retailed drop again. The Q1 figure came in at $2,343, which was $113 lower than a year earlier.

Making up for it by a nearly identical figure was the extra gross per unit Lithia generated in F&I. The company put the Q1 F&I gross figure at $1,290; an amount $112 higher year-over-year.

On the new-car side, Lithia reported a 1.1-percent gain in gross profit to $2,039 as company stores turned 32,749 new models, representing a 6.9-percent jump compared to the first quarter of last year.

Along with the company record for Q1, Lithia reported that its adjusted net income climbed 9 percent year-over-year to $40.4 million, or $1.55 per diluted share.

Lithia’s Q1 total revenue rose $193.7 million, or 11 percent, to $2.0 billion, up from $1.8 billion.

“Our performance in the first quarter was solid,” Lithia president and chief executive officer Bryan DeBoer said. "We grew adjusted earnings per share 12 percent, drove double digit increases in both used retail vehicle and service, body and parts sales and set a record in F&I per unit. We also continued to increase revenue and profitability in our DCH stores.

“While national new-vehicle sales growth is moderating, we have significant opportunity to drive earnings growth through focus on growing vehicle market share and retaining service customers longer, improving store performance and targeting strategic acquisitions,” DeBoer added.

In Lithia’s news release sharing the Q1 financial report, senior vice president and chief financial officer Chris Holzshu touched on a couple of other areas of dealer group’s performance.

“Adjusted SG&A as a percentage of gross profit was 71.1 percent in the first quarter of 2016, an improvement of 20 basis points over the first quarter of 2015,” Holzshu said.

“In the first quarter, incremental throughput, or the percentage of additional same-store gross profit dollars that we retain after deducting incremental selling costs on a same-store basis, was estimated at 37 percent,” he continued. “Our stores generated strong increases in gross profit and will continue to focus on controlling advertising and personnel cost to improve operating leverage.”

Editor’s note: Watch for a report in an upcoming installment of Auto Remarketing Today recapping more details about Lithia’s operations and performance.