Lithia Motors Inc. announced unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2016. For the quarter, the company reported total revenues of $2,269,967,000 against $2,084,845,000 a year ago. Income from operations was $93,423,000 against $72,797,000 a year ago. Income from before income taxes was $80,077,000 against $62,639,000 a year ago. Net income from was $54,041,000 or $2.14 per diluted share compared to $43,391,000 or $1.64 per diluted share a year ago. Adjusted net income for the third quarter of 2016 was $52.0 million, or $2.06 per diluted share, compared to 2015 third quarter adjusted net income of $53.6 million, or $2.03 per diluted share. Capital expenditures, which reduced this free cash flow figure, was $38.9 million for the quarter.

For the nine months, the company reported total revenues of $6,386,167,000 against $5,870,970,000 a year ago. Income from operations was $256,847,000 against $226,320,000 a year ago. Income before income taxes was $217,401,000 against $196,334,000 a year ago. Net income was $145,739,000 or $5.69 diluted income per share against $135,267,000 or $5.10 diluted income per share a year ago. Net cash provided by operating activities was $189,791,000 compared to $106,922,000 a year ago. Adjusted net income was $142.554 million, or $5.57 per diluted share, compared to adjusted net income of $139.937 million, or $5.28 per diluted share a year ago.

For the quarter, the company's asset impairments were $3,498,000 against $4,131,000 a year ago.

Effective January 1, 2017, Chris Holzshu, Senior Vice President and Chief Financial Officer, will be promoted to Executive Vice President and Chief Human Resources Officer. John North, Vice President, Finance and Chief Accounting Officer, will be promoted to Senior Vice President and Chief Financial Officer.

The company's Board of Directors has approved a dividend of $0.25 per share related to third quarter 2016 financial results. The company expects to pay the dividend on November 25, 2016 to shareholders of record on November 11, 2016.

The company projects 2016 full year earnings of $7.40 to $7.45 per diluted share. This projection is based on the annual assumptions of total revenues of $8.5 to $8.6 billion, new vehicle same store sales increasing 2.5%, new vehicle gross margin of 5.7% to 5.9%, used vehicle same store sales increasing 9.5%, used vehicle gross margin of 11.7% to 11.9%, service body and parts same store sales increasing 8.5%, service body and parts gross margin of 48.2% to 48.4%, finance and insurance gross profit of $1,260 to $1,280 per unit, tax rate of 39.5%. For the full year, the company expects to generate $157 million in free cash flow.

The company projects 2017 full year earnings of $8.00 to $8.30 per diluted share. This projection is based on the annual assumptions of total revenues of $9.2 to $9.4 billion, new vehicle same store sales increasing 1.5%, new vehicle gross margin of 5.5% to 5.7%, used vehicle same store sales increasing 5.5%, used vehicle gross margin of 11.5% to 11.7%, service body and parts same store sales increasing 5.0%, service body and parts gross margin of 48.2% to 48.4%, finance and insurance gross profit of $1,270 to $1,295 per unit, tax rate of 39.5%.