Lithia Motors Inc. said Wednesday new-car or truck income and web money slipped in the to start with quarter because of the coronavirus pandemic and linked continue to be-at-household orders across the place.

Finance and insurance policies financial gain, utilised-car or truck income and physique and components gains rose in the quarter regardless of sizeable income declines in the 2nd half of March.

The Medford, Ore., retailer said Wednesday web money dropped eighteen per cent to $46.2 million in the to start with quarter. 1st-quarter profits fell 1.six per cent to $2.eight billion.

Ahead of the coronavirus pandemic, which shuttered shops and slowed income across the U.S., the nation’s 3rd-premier retailer skilled growth across its significant enterprise traces, CEO Bryan DeBoer said in a assertion. Lithia is the to start with publicly-traded dealership team to report to start with-quarter earnings.

“These benefits continued via early March right before staying negatively impacted by various stages of shelter-in-location insurance policies enacted in most states because of to COVID-19,” DeBoer said.

On a simply call with traders, Lithia executives said at the time continue to be-at-household orders ended up issued, income volumes halved for new and utilised autos, while actions to slow the virus different across the retailer’s 188-shop footprint. Some marketplaces, this sort of as Pennsylvania and Vermont, experienced just about no income, when dealerships in Montana and Texas altered hours.

This month, Lithia said it minimize staffing 37 per cent, mainly as furloughs. The organization said in the course of the simply call with traders that some of these layoffs will be long term.

Shares of Lithia ended up up eight.4 per cent to $ninety five.29 in midday buying and selling Wednesday.

Acquisitions, funds situation
Lithia obtained two California Lexus shops in the course of the quarter. Lexus of Sacramento and Lexus of Roseville are predicted to make $160 million in once-a-year profits.

“We are doing the job carefully with our long term acquisition associates to restructure transactions in get to maintain funds. In addition, we are also deferring closing right until the 2nd half of this 12 months to obtain increased insights into earnings good quality and current market situations,” DeBoer said.

DeBoer said Lithia has the funds to proceed dealership acquisitions and “weather this interval of uncertainty.” The dealership team completed the quarter with around $550 million in funds and credit rating availability and an supplemental $500 million in unfinanced true estate.

Income: New-car or truck retail income fell nine.five per cent to 35,907 in the quarter, when utilised-car or truck retail income rose 4.eight per cent to forty two,631. In general income totaled 78,538 autos, down 2.three per cent from a 12 months earlier.

Same-shop income: On a exact-shop basis, new-car or truck retail income slid 15 per cent to 33,178, even worse than the twelve per cent fall in U.S. gentle-car or truck income across the sector in the to start with quarter, in accordance to the Automotive News Information Center. Utilised-car or truck retail income rose 1.7 per cent to 40,374.

Lithia is No. three on Automotive News’ listing of the best a hundred and fifty dealership groups centered in the U.S., with new-car or truck retail income of one hundred eighty,532 in 2019.