MEDFORD, Ore. -

As used-vehicle retail same-store sales increased 16 percent year-over-year during the second quarter, Lithia Motors reported on Wednesday that gross profit on those retailed used units softened by 7.3 percent.

Nonetheless, Lithia generated adjusted net income of $49.4 million in Q2; the highest quarterly net income in company history and a 40-percent increase over the prior year period.

The dealer group’s adjusted net income came in at $1.86 per diluted share. This figure compares to last year’s second quarter adjusted net income from continuing operations of $35.2 million, or $1.34 per diluted share.

The company also highlighted Q2 total revenue from continuing operations increased $775 million, or 63 percent, to $2.0 billion, up from $1.2 billion for the second quarter of last year.

A few other noteworthy achievement from Lithia’s second quarter included:

— Total same store sales increased 11 percent.

— New-vehicle same-store sales increased 8 percent.

— Service, body and parts same store sales increased 10 percent.

— Same store F&I per unit increased $78 to $1,280.

— Adjusted SG&A expense as a percentage of gross profit was 66.6 percent.

“Our store leaders remain focused on continuing to capture more new vehicle market share, increasing used vehicle unit volume and growing service revenue while providing an exceptional customer experience,” Lithia president and chief executive officer Bryan DeBoer said.

“Within both DCH and Lithia, many opportunities remain to improve store performance and to find accretive acquisitions,” DeBoer continued.

The stores already within the company portfolio turned 24,689 used vehicles in Q2. Thanks to those DCH stores in the fold, that amount represented a 53.5 percent lift from a year earlier as the company delivered 8,603 more used models.

That turn performance helped Lithia to overcome a $200 dip year-over-year in gross profit per retailed used vehicle. That Q2 figure came in at $2,539.

Also of note in the used department, Lithia wholesaled 3.4 percent less vehicles in the second quarter, sending 7,077 units the wholesale market.

Turning over to company metrics through the first six months of 2015, Lithia reported that revenue from continuing operations increased 65 percent to $3.8 billion, up from $2.3 billion at the midpoint of 2014.

Through two quarters, the group’s adjusted net income per diluted share increased 38 percent to $3.26, up from $2.36. Unadjusted net income from continuing operations was $3.47 per diluted share for the first six months of 2015, compared to $2.27 per diluted share for the first six months of 2014.

Lithia senior vice president and chief financial officer Chris Holzshu pointed out the company’s adjusted SG&A as a percentage of gross profit was 66.6 percent in the second quarter, bringing the first half of the year down to 68.8 percent.

“DCH has been able to reduce selling costs more quickly than we anticipated,” Holzshu said. “As we continue to integrate operations, we are targeting consolidated SG&A as a percentage of gross profit in the mid-60s on a full year basis.

“Additionally, same store F&I per unit was $1,280 per unit, an increase of $78 over the prior year and the best result in company history,” he continued. “We still believe opportunity remains to improve this number given continued focus by our store personnel.”

Editor’s note: For more reaction from Lithia executives about their latest quarterly performance, watch for a report in an upcoming edition of Auto Remarketing Today.