Though revenue increase of 4% hits a first-quarter record, net income for the auto group fell 33%.
Profit, revenue were up but short of Wall Street forecasts.
Five-dealership purchase expands its Midwest presence.
Most categories of dealership service and parts businesses have recovered from COVID-19 shutdowns, especially customer-pay work.
The auto retailer reports sales jumped 34% in the fourth quarter and soared 51% for the year.
“We expect inventories to continue to normalize throughout the back half of 2021 and in the first part of 2022,” said Chris Holzshu, Lithia chief operating officer, in an earnings conference call.
Lithia Motors acquires Sterling Motorcars luxury brand dealerships, including BMW, MINI, Rolls-Royce Motor Cars, Lamborghini and McLaren in the Washington DC market; marks 5th multi-dealership sale for Kerrigan Advisors in 2020.
All six of America’s big publicly traded dealership groups enjoyed year-over-year gains in F&I profit per vehicle retailed in Q3, led by record highs at AutoNation and Sonic Automotive.
The nation’s six largest publicly traded dealer groups all increased F&I profit per vehicle retailed in the second quarter, led by AutoNation’s $1,926 per copy and Lithia Motors’ segment-leading 11% improvement.
Lithia Motors has purchased Central New Jersey’s Hamilton Honda from Michael Saporito, who will remain as dealer, and former NFL linebacker Jessie Armstead.
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