Document text
3 of 3 Premium Clicks used this month SUBSCRIBE Print + Online Subscriber Activation | Register x Forgot Password | Need an Account? e-edition | subscribe | newsletter | deals Classifieds Jobs Autos Real Estate FEATURED » NEWS NOW Man shot by police near Dunsmuir was from Nevada ... Stouts fire threatening homes; expected to explode again ... Cable Crossing fire near Glide burns 830 acres ... Man shot by police near Dunsmuir was from Nevada ... Stouts fire threatening homes; expected to explode again ... Cable Crossing fire near Glide burns 830 acres ... AUTO RETAILING Lithia hits $2 billion quarterly revenue plateau Bottom line grows to $51.2 million during 2Q By Greg Stiles Mail Tribune MailTribune.com By Greg Stiles Mail Tribune Posted Jul. 22, 2015 @ 7:36 am Updated Jul 22, 2015 at 6:10 PM By Greg Stiles Mail Tribune Posted Jul. 22, 2015 @ 7:36 am Updated Jul 22, 2015 at 6:10 PM » Social News p bs:newslist StartDate="20121121" EndDate="p bs:datecalc Months="3"" DateSort="1" UseObjects="1" ObjectClass="81" Taxonomywords="2325,665" ExactTaxonomyMatch="1" Image="1" Count="4" --> While the next generation of Lithia Motors executives reveled over a $2 billion revenue quarter during Wednesday morning's conference call with investors and analysts, executive chairman Sid DeBoer quietly basked in the glow. The Medford auto retailer's senior visionary made a cameo appearance, slipping into the 45-minute conversation when his son and present CEO Bryan DeBoer asked his thoughts about improvements to the present business model. "We're turning managers lose attracting and keeping the best talent in the industry," the elder DeBoer said. "People are beginning to love to work for us because they have that autonomy. They have the ability to shine, make decisions on the ground. It's a wonderful model." Pushing used cars harder than ever, adjusting to economic and vehicle choice, Lithia not only pushed the revenue envelope to its highest point to date, but the bottom line grew as well.  Lithia reported adjusted net earnings of $49.4 million, or $1.86 per share, were the highest in company history and a 40 percent gain over the $35.2 million, or $1.34 per share, net a year ago. Revenue grew 63.4 percent, or more than $775 million, from last year's $1.2 billion during the period. During the second quarter, Lithia saw new vehicle sales increase by 11 percent and used-car sales by 16 percent. Industrywide, the pace of new car sales was the highest since 2006, prior to credit and buyers drying up. Lithia's new vehicle revenue grew 8 percent, with the average selling price up 2 percent, and the units climbed 6 percent, doubling the national average. "It takes time and we get these great people in there," Sid DeBoer said. "They use the car as an opportunity, but remember this is not a story about increasing margins on new vehicles and used vehicles. It’s about total gross profit generation out of our fixed costs and that's going to be the story. People get all excited about where your margins are shrinking. Well, we're gaining more total gross profit out of our fixed costs and that's the goal." Bryan DeBoer said  23 general managers comprising Lithia Partners Group were in Medford last week  attending a roundtable discussion. "Their ability to challenge and inspire each other is a critical cultural component of personal ownership and continuous improvement," Bryan DeBoer said. Lithia has recovered enough of its outlay and debt ratio to seriously hunt for new acquisitions, the CEO said. "Our earnings increased a little bit more than expected," he said. "So we really believe that our ability to grow again, we are at a point where we can grow. We believe that market is very robust and we have a lot of activity with I would say pens moving." The company said it has $308 million of liquidity available for potential acquisitions and has identified more than 2,600 stores nationwide as potential targets. "We believe that our staple diet of one and two acquisitions are the type of dealerships will always continue," Bryan DeBoer said. "However, the idea of larger groups is something that will be much more simple and easier to integrate in the future, especially now knowing that we can grow in both metro markets as well as in our typical exclusive markets." Reach reporter Greg Stiles at 541-776-4463 or  [email protected] . Follow him on Twitter at  www.twitter.com/GregMTBusiness , on Facebook at  https://www.facebook.com/greg.stiles.31 , and read his blog at  www.mailtribune.com/EconomicEdge .     By Greg Stiles Mail Tribune MailTribune.com By Greg Stiles Mail Tribune Posted Jul. 22, 2015 @ 7:36 am Updated Jul 22, 2015 at 6:10 PM » Comment or view comments /* $( document ).ready(function() { // Jquery mobile is trying to style the button and leaving a blank gry button on top of a white button $("#viafouracoms .vf-comment-controls li.vf-right").html(' Submit '); });*/ » STAY INFORMED Email NewsLetter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. calendar Connect with MailTribune.com Facebook Twitter RSS Back to top Reader Services Reader Services Home Subscriptions Subscriber controls Contact us Submissions Photos Events Letters to the editor Corrections Announcements Obituaries Story ideas Since you asked Alerts Email Alerts RSS Feeds Text Alerts Advertise Media Kit Home Products and services Ad rates Advertising contacts Propel Marketing Mail Tribune Daily Tidings The Nickel Shop Our Valley Blogs Mobile Site Stay Informed Email newsletter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Your privacy is important, read our privacy policy. © Copyright 2015 Local Media Group, Inc. All Rights Reserved. Privacy Policy | Terms of Service | Local Media Group Publications Original content available for non-commercial use under a Creative Commons license, except where noted. MailTribune.com | P.O. Box 1108, Medford, OR 97501