Financial Data and Key Metrics Changes - In Q1 2024, Group 1 Automotive reported adjusted net income of $130 million and an adjusted diluted EPS of $9.49, with total revenues reaching $4.5 billion, marking the highest first-quarter revenues in company history [11][92] - The company generated $171 million of adjusted operating cash flow and $128 million of free cash flow after accounting for $43 million in capital expenditures [15] - Quarterly floorplan interest increased to $20.5 million, up $7.9 million from the prior year due to higher inventory holdings [16] Business Line Data and Key Metrics Changes - Parts and service revenue reached an all-time high of $576.2 million, supported by strong performance across all business lines [11] - F&I gross profit per unit was $2,340, showing a minimal decline on a same-store sequential basis but a 3% increase year-over-year [12] - Used vehicle gross profit per unit improved by $229, or 20% on a sequential quarter basis, indicating resilience in vehicle demand despite market pressures [35] Market Data and Key Metrics Changes - In the U.K., revenues improved with new vehicle sales and parts and service growing by 10% and 9% respectively, although new vehicle margins declined [13] - The U.S. operations saw new vehicle units sold increase by 8% on a same-store basis and 14% on a reported basis, reflecting strong demand [33] - The company reduced used vehicle inventory by 12 days, from 58 days at the end of Q4 2023 to 46 days in Q1 2024 [14] Company Strategy and Development Direction - The acquisition of Inchcape Retail is seen as a generational opportunity to grow and enhance operational capabilities, with expectations of immediate EPS impact [8][92] - The company emphasizes a disciplined capital allocation strategy, focusing on acquisitions, share repurchases, and dividends, while divesting underperforming stores [17][18] - Management believes that close partnerships with OEMs are crucial for success in the current competitive environment [10][106] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the resilience of vehicle demand and the potential for improved performance throughout the year due to recent cost-cutting measures [21][36] - The company anticipates continued pressure on used vehicle finance penetration but expects improvements in new vehicle finance penetration due to increasing OEM incentives [12] - Management highlighted the importance of adapting to market conditions and leveraging technology to optimize operations [28][95] Other Important Information - The company reported a cash liquidity of $222 million and an additional $241 million available to borrow on its acquisition line, totaling $463 million in immediate liquidity [98][99] - Adjusted SG&A as a percentage of gross profit increased by 260 basis points year-over-year to 65.7%, but remains below pre-COVID levels [96] Q&A Session Summary Question: What are the benefits of the Inchcape acquisition? - Management highlighted the exceptional talent and management depth at Inchcape, which is expected to address previous management issues in the U.K. and enhance operational performance [43] Question: Can you provide details on the acquisition costs in Q1? - The acquisition price for Inchcape included real estate valued at GBP 220 million, with the remainder attributed to goodwill and net assets, all acquisitions fell within the company's targeted return model [46] Question: How is the company addressing the collision and wholesale parts business? - Management noted that the collision business has been impacted by insurance companies totaling more vehicles due to falling used car valuations, affecting the wholesale parts business as well [57] Question: What is the outlook for leasing in the U.S. market? - Leasing as a percentage of new vehicle sales increased by 460 basis points year-over-year to 18.6%, indicating a positive trend despite a slight decline in the quarter [65] Question: How is the company managing SG&A costs? - Management indicated that SG&A as a percentage of gross is expected to continue to decrease, with ongoing efforts to optimize costs and improve efficiency [61][84]

Group 1 Automotive (GPI) reported $4.47 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 8.2%. EPS of $9.49 for the same period compares to $10.93 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $4.3 billion, representing a surprise of +3.89%. The company delivered an EPS surprise of -0.32%, with the consensus EPS estimate being $9.52.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- a ...

Group 1 Automotive (GPI) came out with quarterly earnings of $9.49 per share, missing the Zacks Consensus Estimate of $9.52 per share. This compares to earnings of $10.93 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -0.32%. A quarter ago, it was expected that this auto dealer would post earnings of $10.49 per share when it actually produced earnings of $9.50, delivering a surprise of -9.44%.Over the last four quarters, the ...

[Q1 2024 Financial Performance Overview](index=1&type=section&id=Q1%202024%20Financial%20Performance%20Overview) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Group 1 Automotive reported a record first-quarter revenue of $4.5 billion, an 8.2% increase year-over-year. Despite this growth, net income from continuing operations decreased by 7.2% to $147.4 million, and adjusted diluted EPS fell 13.2% to $9.49. The company achieved record quarterly revenues in its Parts and Service segment and its U.K. operations Financial Highlights | Metric | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $4.5 billion | $4.1 billion | +8.2% | | **Net Income (Continuing Ops)** | $147.4 million | $158.8 million | -7.2% | | **Adjusted Net Income (Continuing Ops)** | $130.0 million | $156.1 million | -16.7% | | **Diluted EPS (Continuing Ops)** | $10.76 | $11.12 | -3.2% | | **Adjusted Diluted EPS (Continuing Ops)** | $9.49 | $10.93 | -13.2% | - The company achieved several record results in the first quarter of 2024: - Total revenues reached a first-quarter record of **$4.5 billion**[7](index=7&type=chunk) - Parts and service revenues hit a quarterly record of **$576.2 million**[7](index=7&type=chunk) - U.K. total revenues also set a quarterly record at **$824.8 million**[7](index=7&type=chunk) Key Performance Metric (Consolidated YoY, in millions, except units) | Key Performance Metric (Consolidated YoY) | Q1 2024 | % Change | | :--- | :--- | :--- | | **Total Gross Profit** | $742.6M | +2.0% | | **New Vehicle Units Sold** | 44,302 | +11.7% | | **New Vehicle GP per Unit** | $3,601 | -23.5% | | **Used Vehicle Retail Units Sold** | 49,183 | +8.2% | | **Used Vehicle Retail GP per Unit** | $1,669 | -1.2% | | **F&I Revenues** | $188.9M | +14.4% | [Management Commentary](index=1&type=section&id=Management%20Commentary) The CEO highlighted strong execution in the U.S., with double-digit growth in vehicle sales volume and a 16% increase in F&I. The U.K. operations rebounded from Q4 2023, achieving record revenues in parts, service, and new vehicles. The company is actively scaling through acquisitions and expects to realize full benefits from U.K. cost reduction efforts in Q2 and beyond, ahead of the planned Inchcape U.K. acquisition in Q3 2024 - **U.S. Performance:** Achieved double-digit volume growth in both new and used vehicle sales, with F&I growth exceeding **16%** year-over-year[4](index=4&type=chunk) - **U.K. Rebound:** The U.K. team recovered from a challenging Q4 2023, producing record quarterly revenues from parts and service and new vehicles. Used vehicle sales volume increased over **19%** sequentially[4](index=4&type=chunk) - **Strategic Initiatives:** The company is integrating nine dealership acquisitions from Q1 and anticipates realizing the full benefits of its U.K. cost reduction efforts from Q2 2024 onwards. The acquisition of Inchcape's U.K. retail business is planned for Q3 2024[4](index=4&type=chunk) [Corporate Development and Capital Allocation](index=2&type=section&id=Corporate%20Development%20and%20Capital%20Allocation) [Acquisitions and Dispositions](index=2&type=section&id=Acquisitions%20and%20Dispositions) In the first quarter of 2024, the company expanded its portfolio by acquiring dealership operations expected to generate approximately $1.0 billion in annual revenues. Concurrently, it divested six dealerships in Beaumont, Texas, which had about $260.0 million in annual revenues - **Acquisitions:** Acquired and integrated dealership operations with total expected annual revenues of approximately **$1.0 billion** during the first quarter[9](index=9&type=chunk) - **Dispositions:** Disposed of six dealerships in Beaumont, Texas, which generated approximately **$260.0 million** in annual revenues[10](index=10&type=chunk) [Share Repurchases](index=2&type=section&id=Share%20Repurchases) The company repurchased 203,350 shares for $53.8 million during the first quarter of 2024. Over the last 15 months, it has bought back 6.5% of its outstanding common shares. As of March 31, 2024, $89.6 million remains available under the current share repurchase authorization Share Repurchase Activity | Share Repurchase Activity | Value | | :--- | :--- | | **Q1 2024 Shares Repurchased** | 203,350 | | **Q1 2024 Average Price per Share** | $264.41 | | **Q1 2024 Total Cost** | $53.8 million | | **Remaining Authorization (as of Mar 31, 2024)** | $89.6 million | - From January 1, 2023, to March 31, 2024, the company repurchased **932,932 shares** for a total of **$226.5 million**, representing about **6.5%** of the common shares outstanding at the start of the period[11](index=11&type=chunk) [Detailed Financial Statements](index=6&type=section&id=Detailed%20Financial%20Statements) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the first quarter of 2024, total revenues grew 8.2% to $4.47 billion, primarily driven by an 11.6% increase in new vehicle retail sales. However, gross profit grew only 2.0% as cost of sales increased at a faster rate (9.6%). Higher floorplan and other interest expenses contributed to a 7.2% decline in net income from continuing operations to $147.4 million Income Statement (in millions) | Income Statement (in millions) | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $4,470.5 | $4,130.0 | +8.2% | | **Gross Profit** | $742.6 | $727.9 | +2.0% | | **Income from Operations** | $242.6 | $241.5 | +0.5% | | **Net Income from Continuing Ops** | $147.4 | $158.8 | -7.2% | | **Diluted EPS from Continuing Ops** | $10.76 | $11.12 | -3.2% | [Selected Balance Sheet & Other Information](index=7&type=section&id=Selected%20Balance%20Sheet%20%26%20Other%20Information) As of March 31, 2024, total debt increased by 22.6% to $2.57 billion compared to year-end 2023, while inventories grew by 7.0% to $2.10 billion. The days' supply for new vehicles in the U.S. increased to 43 days from 27 a year ago, while in the U.K. it remained stable at 20 days. Toyota/Lexus remains the largest brand mix for new vehicle sales Selected Balance Sheet Items (in millions) | Selected Balance Sheet Items (in millions) | Mar 31, 2024 | Dec 31, 2023 | % Change | | :--- | :--- | :--- | :--- | | **Cash and cash equivalents** | $41.9 | $57.2 | -26.7% | | **Inventories, net** | $2,101.4 | $1,963.4 | +7.0% | | **Total debt** | $2,572.9 | $2,098.8 | +22.6% | | **Total equity** | $2,772.4 | $2,674.4 | +3.7% | - **Geographic Mix (New Vehicle Units):** The U.S. accounted for **79.8%** of sales in Q1 2024, up from **77.9%** in Q1 2023[26](index=26&type=chunk) - **Brand Mix (New Vehicle Units):** Toyota/Lexus increased its share to **25.4%** from **22.1%** YoY, while Volkswagen Group's share decreased to **13.8%** from **17.7%**[26](index=26&type=chunk) Days' Supply in Inventory | Days' Supply in Inventory | Mar 31, 2024 | Mar 31, 2023 | | :--- | :--- | :--- | | **U.S. New Vehicle** | 43 | 27 | | **U.S. Used Vehicle** | 26 | 25 | | **U.K. New Vehicle** | 20 | 19 | | **U.K. Used Vehicle** | 46 | 44 | [Segment and Operational Performance](index=8&type=section&id=Segment%20and%20Operational%20Performance) [Consolidated Operational Data](index=8&type=section&id=Consolidated%20Operational%20Data) On a consolidated basis, the company saw an 11.7% increase in new vehicle units sold and an 8.2% increase in used vehicle retail units. However, profitability per unit faced pressure, with new vehicle gross profit per unit (PRU) declining 23.5% to $3,601. This was partially offset by a 4.1% increase in Finance & Insurance (F&I) PRU to $2,020 Consolidated Operating Metric (YoY, in millions, except units) | Consolidated Operating Metric (YoY) | Q1 2024 | % Change | | :--- | :--- | :--- | | **Total Revenues** | $4,470.5M | +8.2% | | **Total Gross Profit** | $742.6M | +2.0% | | **Retail New Vehicles Sold (Units)** | 44,302 | +11.7% | | **New Vehicle GP per Unit** | $3,601 | -23.5% | | **Retail Used Vehicles Sold (Units)** | 49,183 | +8.2% | | **Used Vehicle Retail GP per Unit** | $1,669 | -1.2% | | **F&I GP per Unit (PRU)** | $2,020 | +4.1% | [U.S. Segment Operational Data](index=10&type=section&id=U.S.%20Segment%20Operational%20Data) The U.S. segment delivered strong top-line growth, with total revenues up 9.1% to $3.6 billion, driven by a 14.4% increase in new vehicle unit sales. Total gross profit grew 3.5%. While new vehicle gross profit per unit fell by 25.2%, this was mitigated by growth in used vehicle and parts & service gross profit, along with a 3.6% increase in F&I PRU to $2,340 U.S. Operating Metric (YoY, in millions, except units) | U.S. Operating Metric (YoY) | Q1 2024 | % Change | | :--- | :--- | :--- | | **Total Revenues** | $3,645.7M | +9.1% | | **Total Gross Profit** | $639.1M | +3.5% | | **Retail New Vehicles Sold (Units)** | 35,341 | +14.4% | | **New Vehicle GP per Unit** | $3,731 | -25.2% | | **Retail Used Vehicles Sold (Units)** | 37,885 | +10.0% | | **Used Vehicle Retail GP per Unit** | $1,758 | +1.3% | | **F&I GP per Unit (PRU)** | $2,340 | +3.6% | [U.K. Segment Operational Data](index=11&type=section&id=U.K.%20Segment%20Operational%20Data) The U.K. segment achieved record quarterly revenue of $824.8 million, a 4.7% increase year-over-year. However, total gross profit declined by 6.2% to $103.5 million. This was due to significant margin compression, with new vehicle gross profit per unit falling 17.0% and used vehicle retail gross profit per unit dropping 11.2%. SG&A as a percentage of gross profit also increased notably from 67.2% to 78.5% U.K. Operating Metric (YoY, in millions, except units) | U.K. Operating Metric (YoY) | Q1 2024 | % Change | | :--- | :--- | :--- | | **Total Revenues** | $824.8M | +4.7% | | **Total Gross Profit** | $103.5M | -6.2% | | **Retail New Vehicles Sold (Units)** | 8,961 | +2.2% | | **New Vehicle GP per Unit** | $3,085 | -17.0% | | **Retail Used Vehicles Sold (Units)** | 11,298 | +2.7% | | **Used Vehicle Retail GP per Unit** | $1,370 | -11.2% | | **F&I GP per Unit (PRU)** | $863 | -2.6% | [Same-Store Operational Data](index=12&type=section&id=Same-Store%20Operational%20Data) On a same-store basis, which excludes the impact of recent acquisitions and dispositions, the company's performance reflects underlying market trends. While revenues grew across all regions, gross profit declined on a consolidated and U.K. basis due to significant pressure on new vehicle margins. The U.S. same-store gross profit remained flat [Consolidated Same-Store Data](index=12&type=section&id=Consolidated%20Same-Store%20Data) Consolidated same-store revenues increased 4.6% to $4.2 billion, but total gross profit fell 1.1% to $695.6 million. The decline was driven by a 24.2% drop in new vehicle gross profit per unit, despite a 6.4% increase in units sold. SG&A expenses as a percentage of gross profit increased by 510 basis points to 68.6% Consolidated Same-Store Metric (YoY, in millions, except units) | Consolidated Same-Store Metric (YoY) | Q1 2024 | % Change | | :--- | :--- | :--- | | **Total Revenues** | $4,174.0M | +4.6% | | **Total Gross Profit** | $695.6M | -1.1% | | **Retail New Vehicles Sold (Units)** | 40,898 | +6.4% | | **New Vehicle GP per Unit** | $3,584 | -24.2% | | **SG&A as % of Gross Profit** | 68.6% | +5.1% | [U.S. Same-Store Data](index=14&type=section&id=U.S.%20Same-Store%20Data) U.S. same-store revenues grew 4.5% to $3.4 billion, while total gross profit was nearly flat, declining just 0.1%. A 7.7% increase in new vehicle unit sales was offset by a 25.9% decrease in gross profit per unit. F&I PRU showed modest growth of 2.9% to $2,340 U.S. Same-Store Metric (YoY, in millions, except units) | U.S. Same-Store Metric (YoY) | Q1 2024 | % Change | | :--- | :--- | :--- | | **Total Revenues** | $3,352.1M | +4.5% | | **Total Gross Profit** | $593.4M | -0.1% | | **Retail New Vehicles Sold (Units)** | 31,937 | +7.7% | | **New Vehicle GP per Unit** | $3,724 | -25.9% | [U.K. Same-Store Data](index=15&type=section&id=U.K.%20Same-Store%20Data) U.K. same-store revenues increased by 4.7% to $821.8 million, but gross profit saw a significant decline of 6.3% to $102.1 million. The drop was driven by margin compression in both new vehicles (GP per unit down 17.0%) and used vehicles (GP per unit down 11.1%) U.K. Same-Store Metric (YoY, in millions, except units) | U.K. Same-Store Metric (YoY) | Q1 2024 | % Change | | :--- | :--- | :--- | | **Total Revenues** | $821.8M | +4.7% | | **Total Gross Profit** | $102.1M | -6.3% | | **Retail New Vehicles Sold (Units)** | 8,961 | +2.2% | | **New Vehicle GP per Unit** | $3,085 | -17.0% | [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) [Explanation of Non-GAAP Measures](index=4&type=section&id=Explanation%20of%20Non-GAAP%20Measures) The company utilizes non-GAAP financial measures, such as adjusted net income and adjusted SG&A, to provide investors with a clearer view of its core operational performance. These measures exclude items that management considers non-core, including gains or losses on asset sales, legal matters, and catastrophic events. The company also presents results on a constant currency basis to remove the impact of foreign exchange fluctuations - Management evaluates performance using non-GAAP measures to exclude items not arising from core operations, such as asset impairment charges, legal matters, gains/losses on dealership transactions, and catastrophic events[17](index=17&type=chunk) - These adjusted measures are used to assess the business, communicate with the Board and investors, and are believed to provide more consistent period-over-period comparisons and better indications of future trends[18](index=18&type=chunk) - The company also evaluates results on a constant currency basis, a non-GAAP measure that excludes the impact of foreign currency exchange rate fluctuations to show underlying business performance[19](index=19&type=chunk) [Reconciliation of Non-GAAP Measures](index=16&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) For Q1 2024, the company's GAAP net income from continuing operations of $147.4 million was adjusted to a non-GAAP figure of $130.0 million. Key adjustments included excluding a $23.0 million net gain from dealership and real estate transactions, while adding back costs related to acquisitions, severance, and legal fees. Consequently, GAAP diluted EPS of $10.76 was reconciled to an adjusted diluted EPS of $9.49 Reconciliation (in millions) | Reconciliation (in millions) | Q1 2024 | | :--- | :--- | | **Net Income from Continuing Ops (GAAP)** | **$147.4** | | Gain on dealership/real estate transactions | ($23.0) | | Acquisition costs | $2.3 | | Legal items and other professional fees | $2.4 | | Other adjustments (catastrophic events, severance) | $0.7 | | **Adjusted Net Income from Continuing Ops (Non-GAAP)** | **$130.0** | EPS Reconciliation | EPS Reconciliation | Q1 2024 | | :--- | :--- | | **Diluted EPS from Continuing Ops (GAAP)** | **$10.76** | | Impact of dealership/real estate transactions | ($1.68) | | Impact of acquisition costs | $0.17 | | Impact of legal/professional fees | $0.17 | | Other adjustments | $0.07 | | **Adjusted Diluted EPS from Continuing Ops (Non-GAAP)** | **$9.49** |

Current quarter diluted earnings per common share from continuing operations of $10.76 and current quarter adjusted diluted earnings per common share from continuing operations (a non-GAAP measure) of $9.49 Total revenues of $4.5 billion, a first quarter record and 8.2% increase over the comparable prior year period Parts and service revenues of $576.2 million, a quarterly record and 5.1% increase over the comparable prior year period U.K. total revenues of $824.8 million, a quarterly record and 4.7% incre ...

The market expects Group 1 Automotive (GPI) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended March 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be rele ...

Group 1 Automotive, Inc. (GPI) has entered into a definitive contract to acquire Inchcape’s U.K. automotive retailing business and the related owned real estate. The all-cash transaction will cost nearly $439 million to GPI, including the appraised real estate value of $279 million.In 2023, Inchcape’s U.K. dealerships registered annual revenues of around $2.7 billion. The completion of the transaction is subject to obtaining approval from the Financial Conduct Authority and is anticipated to close in the th ...

54 Dealership Locations in the United Kingdom HOUSTON, April 15, 2024 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI) ("Group 1" or the "Company"), a  Fortune 300 automotive retailer with 202 dealerships located in the U.S. and U.K., today announced it has entered into a definitive agreement to acquire the U.K. automotive retailing business and related owned real estate from a subsidiary of Inchcape plc for approximately $439 million (£346 million) in an all-cash transaction, inclusive of $279 millio ...

HOUSTON, April 12, 2024 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI) ("Group 1" or the "Company"), a Fortune 300 automotive retailer with 202 dealerships located in the U.S. and U.K., today announced that it will release financial results for the first quarter ended March 31, 2024 on Wednesday, April 24, 2024, before the market opens. Daryl Kenningham, Group 1's President and Chief Executive Officer, and the Company's senior management team will host a conference call to discuss the results later th ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-13461 Group 1 Automotive, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organiza ...