MEDFORD, Ore. — While also explaining its chief executive officer succession plan, Lithia Motors detailed results from a period that produced its best fourth-quarter net income ever in addition to used-vehicle sales that soared double digits.

Specifically, the company sold 10,092 retail used vehicles during the period for a 24.5-percent year-over-year gain. Wholesale used sales increased 22.9 percent at 4,388 units.

Used retail revenue jumped 28.9 percent at $175.3 million, while wholesale revenue climbed 30.3 percent to $35.9 million.

On a same-store basis, retail used sales climbed 19.4 percent (9,659 units) and wholesale was up 18.5 percent (4,225). Same-store used retail revenue reached $164.6 million for a 21.2-percent hike, while same-store wholesale revenue came in shy just of $34 million (up 23.3 percent).

Overall, Lithia pulled in $13.0 million in adjusted income from continuing operations, up from $5.4 million in the fourth quarter of 2010.

The later period was “reduced to exclude a benefit of $0.15 per share gain on the sale of real estate offset by a non-core reserve adjustment charge of $0.02 per share,” officials explained. As for the fourth quarter of 2010, a $0.04 per share non-core charge (related to asset impairment and reserve adjustments) was excluded from the adjusted results.

Lithia notched $16.4 million in unadjusted net income from continuing operations. A year earlier, the total was $4.2 million.

Total revenue came in at $717.5 million, up 33.3 percent year-over-year. Same-store revenue increased 23.2 percent to $662.0 million.

Full-Year Performance

Moving on to  full-year results, Lithia reported unadjusted income from continuing operations at $2.09 per diluted share. A year ago, it was $0.51 per diluted share. Adjusted, it came in at $1.97 per diluted share in 2011 and $0.93 per diluted share in 2010.

Full-year revenues reached $2.7 billion, up from $2.1 billion in 1020.

Used retail revenue hit $695.8 million (up 22.8 percent) and wholesale revenue reached $130.7 million for a 23.7-percent hike.

Dealers moved 40,457 retail used units in 2011 (up 19.5 percent) and made 16,439 wholesale used sales (up 18.2 percent).

On a same-store basis, used retail revenue climbed 16.9 percent to $658.6 million. Lithia improve same-store wholesale revenue by 20.2 percent, pulling in $125.3 million. Same-store used retail sales jumped 15.2 percent (38,762 units) with the wholesale side climbing 15.8 percent (15,942 units).

Overall, same-store revenue totaled $2.5 billion in 2011, compard to $2.1 billion in 2010.

Sharing some overall commentary, president and chief operating officer Bryan DeBoer noted: “We increased both fourth-quarter and full-year total same-store sales 23 percent. New-vehicle same-store sales increased 29 percent in both the fourth quarter and full year 2011.

“Our team is aligned and focused on continuous improvement. Although we had a successful 2011, we still have opportunities to increase new and used vehicles sales in our markets,” he shared. “Improving customer satisfaction in both our sales and service offerings will be a key objective in 2012.”

Senior vice president and chief financial officer Chris Holzshu added: “We continue our focus on leveraging our expense structure as sales volumes increase. Adjusted SG&A as a percentage of gross profit was 72.9 percent for the full year, an improvement of 530 basis points over our 2010 results.

“Our team has remained vigilant to ensure the fixed expenses we took out of the business do not return as sales volumes recover. We believe we can continue to improve our leverage and have a goal to lower full year SG&A to gross profit into the 70-percent range,” he shared.

CEO Transition

Next up, Lithia explained the CEO transition that will take place this spring.

On May 1, Sid DeBoer — the company’s founder, chairman and CEO — will become executive chairman and keep his role as chairman of the board. Bryan DeBoer — who has been with the company for more than 26 years and has held his current post since 2007 — will move into the CEO role.

In essense, the company's strategy and vision will be added to Bryan DeBoer's duties, while Sid DeBoer will maintain his executive capacity. Among those duties include strategic oversight, OEM relations, government relations and business development, officials noted.

“This transition is part of our plan to position the next generation of Lithia's leaders for success. Under Bryan's direction as COO, the team has outperformed the overall automotive retail sector,” explained Tom Becker, lead independent director.

“The board of directors believes the time is right for this change. We look forward to continued success in the future and feel that Lithia has never been better positioned to prosper under the leadership of Bryan as CEO and Sid as founder and executive chairman,” Becker added.