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Lithia Motors posts 9 percent revenue gain in Q3 Thursday Oct 20, 2016 at 3:19 PM Oct 20, 2016 at 3:19 PM Greg Stiles Mail Tribune @GregMTBusiness New-vehicle sales might be leveling off across the auto industry, but Lithia Motors CEO Bryan DeBoer isn't buying it. Not only did Lithia Motors report its best third quarter ever Thursday, but new-vehicles sales in California, Hawaii and Oregon were decidedly on a roll. "Every market is different," DeBoer said, noting Hawaii new-vehicle sales jumped 40 percent year-over-year during the quarter, while California sales increased 15 percent and Oregon 10 percent. Across the company, same-store new-vehicle sales grew 1 percent, while total sales improved 4 percent. "There are good things happening," he said. The Medford-based auto retailer reported third-quarter revenue increased $185.1 million to $2.3 billion, a 9 percent gain. Lithia posted net earnings of $54 million, or $2.14 per share, compared to $43.4 million, or $1.64 per share, a year ago. Through nine months, Lithia revenue has climbed 8.8 percent to $6.4 billion, compared to $5.9 billion in 2015. While some markets are hot, others are struggling and have been since oil prices plummeted, DeBoer said. "It's really just a matter a dealing with the energy-based markets," he said. Booming auto sales pushed the price of dealerships and groups higher in recent years. Of late, however, the climate has changed. Even with manufacturer incentives, U.S. vehicle sales dropped below a seasonally adjust annual rate of 18 million last month. Still, DeBoer said softening demand for new autos has its advantages. "There's been a big disconnect between pricing of new acquisition opportunities," DeBoer said. "Ultimately, there is disconnect between pricing of dealerships. This slowing and uncertain market will stabilize the market and bring it back to reality so we can acquire more. So to us, we're seeing the best of both worlds." Lithia has added 14 dealerships and opened another this year. During the third quarter it added Carbone Auto Group with nine stores in New York and Vermont. DeBoer said Lithia elected to keep the Carbone name because of its long-standing success. "There was a cultural fit, and Carbone has wonderful Yelp ratings, and they've been around for 80 years," he said. "Because of their reputation, it was a brand name we could leverage and grow from." Lithia will continue to look for auto groups of typically six to 15 dealerships. Separately, Lithia announced a 25 cents per share dividend Nov. 26 to shareholders of record on Nov. 11. Lithia shares declined $8.48 during trading hours to $86.73.