Financial Data and Key Metrics Changes - In Q4 2022, Group 1 Automotive generated adjusted net income from continuing operations of $158 million, or $10.86 per diluted share, representing a 15% increase year-over-year [22] - Adjusted net income for the full year grew 15% to a record $729 million, with adjusted EPS increasing 32% to an all-time high of $45.71 [43] - The company generated $916 million of adjusted operating cash flow and $803 million of free cash flow after accounting for $113 million of CapEx [30] Business Line Data and Key Metrics Changes - The F&I business remained strong at $2,369 per unit, showing only a minimal sequential decline [24] - Same store technician headcount increased by 16% in 2022, contributing to aftersales growth [25] - In Q4, the company sold a record 10,100 vehicles through AcceleRide, accounting for 15% of total US retail sales [26] Market Data and Key Metrics Changes - In the UK, vehicle demand remains steady, with a new vehicle order bank of approximately 16,000 units, consistent with the prior quarter [27] - The company noted that new vehicle availability is still constrained, particularly for Toyota and Lexus, which had a combined supply of only 4 days [45] Company Strategy and Development Direction - The company plans to continue integrating the AcceleRide platform with its DMS, CRM, and credit software to enhance customer experience and operational efficiency [49] - Group 1 Automotive aims to find additional growth opportunities in 2023, prioritizing growth in the US and UK markets [55] Management's Comments on Operating Environment and Future Outlook - Management expects a gradual decline in new vehicle margins throughout 2023 as inventory recovers, but anticipates that normalized margins will settle above pre-pandemic levels [23] - The company remains optimistic about the production plans from Toyota, indicating a potential increase in vehicle availability in 2023 [65] Other Important Information - The company repurchased $521 million in shares during the calendar year, reducing the share count by over 22% in the last 15 months [44][77] - Approximately 70% of the company's debt is fixed through interest rate swaps, which mitigates the impact of rising interest rates on earnings [78] Q&A Session Summary Question: Impact of Tesla's price cuts - Management noted that they did reprice their used Teslas in inventory following Tesla's announcement, but the impact was minimal as they had less than 100 units across the country [108] Question: January performance and demand impact - Management indicated that they did not see a significant impact on demand from Tesla's price cuts, with GPUs still above pre-pandemic levels [69] Question: Changes in UK vehicle backlog and consumer demand - Management reported minor changes in the UK vehicle backlog, indicating that demand remains relatively consistent [90] Question: Interest expense outlook - Management stated that approximately 70% of their debt is fixed, which will help mitigate the impact of rising interest rates on their financials [78] Question: Technician hiring initiatives - Management highlighted various initiatives to attract technicians, including a four-day workweek, which is currently implemented in about half of their stores [118]

Financial Data and Key Metrics Changes - Group 1 Automotive reported adjusted net income of $188 million from continuing operations, equating to adjusted earnings per share of $12, a 27% increase over the prior year [8] - Adjusted results excluded non-core items totaling $9 million of after-tax gains, primarily from the sale of a dealership franchise [9] - The company generated $730 million of adjusted operating cash flow and $647 million of free cash flow after backing out $83 million of CapEx [24] Business Line Data and Key Metrics Changes - The aftersales business experienced double-digit same-store gross profit growth, with over 10% consolidated same-store gross profit growth on a local currency basis [14][19] - Same-store used retail sales increased by 2% in the US, despite the industry being down 12% [17] - Used vehicle margins declined sequentially from approximately $1,900 per unit in Q2 to roughly $1,600 in Q3 [10] Market Data and Key Metrics Changes - The UK market showed steady consumer demand with a new vehicle order bank of nearly 17,000 units, representing over a six-month backlog [11] - Texas outperformed total US same-store growth in new vehicle sales, used vehicle sales, aftersales, and net profitability [13] - The US new vehicle inventory stood at 5,000 units, representing a 15-day supply, with Toyota and Lexus having a combined 5-day supply [16] Company Strategy and Development Direction - The company continues to focus on high-quality external growth actions, having purchased six dealerships expected to generate $740 million in annual revenues [29] - Geographic exposure in Texas and the UK is viewed as a near-term and long-term advantage for the company and shareholders [13] - The integration of AcceleRide with DMS, CRM, and credit software is expected to provide faster and more transparent transactions for customers [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that consumers are under pressure due to inflation, but the majority of their business is with higher-income individuals who can still afford vehicles [58] - The company is prepared for normalization in used vehicle prices and has been responsive to market changes, maintaining a 30-day supply of used vehicles [60] - The parts and service business is expected to remain resilient even in a potential recession, as seen during the 2008 recession [61] Other Important Information - The company repurchased nearly 2.7 million shares at an average price of $171.1, representing 20% of its share float over the last 12 months [24] - The quarterly floor plan interest increased by $2.2 million from the prior year due to higher vehicle inventory holdings and interest rates [26] Q&A Session Summary Question: What does the new vehicle inventory and order book look like? - Management indicated that OEMs are optimistic about the fourth quarter, with pre-sold units in the US remaining steady compared to the second quarter [33][34] Question: How is the AcceleRide impacting staffing and cost savings? - Management noted that AcceleRide is changing the staffing model, focusing more on appointments and improving productivity [39][40] Question: What is the outlook for aftersales capacity utilization? - Management expressed confidence in increasing technician counts and service capacity, particularly in the UK market [52][54] Question: How does the company view consumer demand trends amid economic uncertainty? - Management acknowledged consumer pressure but emphasized that their customer base is primarily higher-income individuals, which supports continued vehicle purchases [58][59] Question: What is the expectation for F&I per unit into 2023? - Management remains bullish on the F&I business, indicating that structural improvements will sustain current performance levels [72]

Group 1 Automotive, Inc. (NYSE:GPI) Q2 2022 Earnings Conference Call July 27, 2022 10:00 AM ET Company Participants Peter DeLongchamps - SVP, Manufacturer Relations, Financial Services and Public Affairs Earl Hesterberg - President & CEO Daryl Kenningham - President of U.S. Operations Daniel McHenry - SVP & CFO Conference Call Participants John Murphy - Bank of America Rajat Gupta - JPMorgan Daniel Imbro - Stephens Incorporated Adam Jonas - Morgan Stanley David Whiston - Morningstar Michael Ward - Benchmark ...

GROUP 1 AUTOMOTIVE® Second Quarter 2022 Financial Results Investor Presentation July 27, 2022 SCHEDULE PARTS & SERVICE BUY & SELL ONLINE FINANCE & INSURANCE CUSTOMER SUPPORT - AcceleRi GPI LISTED NYSE Forward-Looking Statements Page 2 This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements related to future, not past, events and are based on our current expectations and assumptions regarding our business, the ec ...

Financial Performance & Capital Allocation - Group 1 generated $656 million in free cash flow in 2021 and $293 million in 1Q 2022[5] - The company completed $2.5 billion in acquisitions in 2021 and $550 million year-to-date in 2022[7] - Group 1 repurchased 1.6 million shares over 4Q21 & 1Q22, representing nearly 10% of their share count[7] - In 2021, Group 1 completed $1.8 billion Prime Auto Group acquisition[34] - From 2020 through 1Q22, Group 1 repurchased 2.6 million common shares, or approximately 15% of the company's outstanding common shares, for a total of $405.9 million[34] Operational Highlights & Growth Strategies - AcceleRide® units sold experienced 77% year-over-year growth in 2021[9] - Parts & Service generates approximately 45% of total gross profit[28, 34] - Group 1's Texas locations generated 36% of 1Q22 total new vehicle unit sales[25] - 1Q22 Same Store P&S Sales increased by 18.6% year-over-year[44] - In March 2022, over 60% of vehicles sold utilized at least 1 component of the AcceleRide platform[58]

Financial Data and Key Metrics Changes - Group 1 Automotive reported adjusted net income of $185 million from continuing operations, translating to adjusted earnings per share of $10.81, a 96% increase year-over-year and an all-time quarterly record [9][11] - The adjusted results excluded noncore items totaling approximately $16 million from the sale of two franchises and excess real estate [10] Business Line Data and Key Metrics Changes - The U.S. same-store used vehicle retail unit sales declined by 4% compared to Q1 2021, while customer pay same-store revenue grew by 19% [16][19] - Same-store collision revenues increased by 28% and wholesale parts revenues increased by 29%, contributing to a 19% growth in same-store total after sales revenue [19] - AcceleRide sold 5,800 vehicles online, representing over 9% of total U.S. retail sales, with a 22% sequential increase from Q4 2021 [21] Market Data and Key Metrics Changes - The U.K. new vehicle order bank exceeds seven months, with some luxury brand orders extending into 2023, indicating strong pent-up demand [12] - Texas market outperformed total U.S. same-store growth in new vehicle sales, used vehicle sales, after sales, and net profitability [13] Company Strategy and Development Direction - The company plans to focus on high-quality external growth actions, including the acquisition of two large U.S. Toyota stores expected to generate $550 million in annual revenues [31] - The balance sheet and cash flow generation will support a flexible capital allocation approach, including share repurchases and pursuing external growth opportunities [32] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer demand for vehicles remains extremely strong, with most units sold almost immediately after OEM delivery [11] - Inflation may impact lower demographic sectors, but the company has not observed a decrease in consumer activity in its stores [46][48] Other Important Information - The company had $216 million in total cash liquidity as of March 31, with $319 million of adjusted operating cash flow generated in Q1 [24][26] - The quarterly floor plan interest decreased by 30% year-over-year, while non-floor plan interest increased by 32% due to debt rates related to acquisitions [28] Q&A Session Summary Question: Comments on parts and service performance - Management confirmed strong customer pay growth and a slight decline in warranty work, with digital service appointments fully integrated at Prime [35][36] Question: Inventory management and sales - U.S. inventory was reported at a nine-day supply, with over 60% of sales occurring off the truck [37][38] Question: Capital allocation and share buybacks - Management confirmed that share buybacks and acquisitions are part of their capital allocation strategy, with a focus on improving structural earnings power [41][43] Question: Demand trends in the market - Management indicated that while inflation affects lower demographics, overall demand remains strong, particularly in luxury brands [45][48] Question: AcceleRide performance and customer retention - AcceleRide customers show a higher attachment rate for F&I products compared to in-store customers, with a retention rate of 71% for AcceleRide customers [57][70] Question: Future outlook on F&I and gross margins - Management acknowledged that margins may not remain high indefinitely, but emphasized their flexible cost structure to adapt to changing conditions [76][78]

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, 2021 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: 1-13461 Group 1 Automotive, Inc. (Exact name of registrant as specified in its charter) (State of other jurisdiction of incorporation or organizati ...

Group 1 Automotive, Inc. (NYSE:GPI) Q4 2021 Earnings Conference Call February 10, 2022 10:00 AM ET Company Participants Pete DeLongchamps - Senior Vice President-Manufacturer Relations, Financial Services and Public Affairs Earl Hesterberg - President & Chief Executive Officer Daryl Kenningham - President of US & Brazilian operations Daniel McHenry - Senior Vice President & Chief Financial Officer Chris Gillette - Vice President & Corporate Controller. Conference Call Participants Michael Ward - Benchmark R ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents the unaudited condensed consolidated financial statements for the quarter ended September 30, 2021 Condensed Consolidated Balance Sheet Highlights (in millions) | Account | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $296.9 | $87.3 | | Inventories | $850.8 | $1,468.0 | | Total Current Assets | $1,570.8 | $2,004.2 | | Goodwill | $1,034.5 | $997.1 | | **Total Assets** | **$4,757.6** | **$5,089.4** | | **Liabilities & Equity** | | | | Floorplan notes payable, net | $318.0 | $1,095.1 | | Total Current Liabilities | $1,046.1 | $1,842.7 | | Long-term debt | $1,276.3 | $1,294.7 | | **Total Stockholders' Equity** | **$1,918.6** | **$1,449.6** | Condensed Consolidated Statements of Operations Highlights (in millions, except per share data) | Metric | Q3 2021 | Q3 2020 | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $3,509.2 | $3,039.6 | $10,219.7 | $7,861.7 | | Gross Profit | $653.2 | $512.0 | $1,805.1 | $1,287.2 | | Income from Operations | $246.8 | $187.1 | $665.3 | $336.0 | | Net Income | $172.1 | $126.4 | $465.0 | $186.4 | | Diluted EPS | $9.33 | $6.83 | $25.21 | $10.08 | - As of September 30, 2021, the company's retail network consisted of **117 dealerships in the U.S.**, **55 in the U.K.**, and **16 in Brazil**[25](index=25&type=chunk) - During the first nine months of 2021, the company acquired **nine dealerships** (two in the U.S., seven in the U.K.) for a total of **$74.6 million**[36](index=36&type=chunk) - On September 13, 2021, the company entered an agreement to acquire **Prime Automotive Group for approximately $880 million**, which includes 30 dealerships[38](index=38&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Details management's perspective on financial performance, strategic initiatives, and segment results [Overview and Long-Term Strategy](index=24&type=section&id=Overview%20and%20Long-Term%20Strategy) Outlines the company's strategy of acquisitions and digital platform growth amid semiconductor shortages - The company's 2021 priorities include **growing through acquisitions**, improving the **AcceleRide® digital platform**, and growing parts and service gross profit[98](index=98&type=chunk) - The pending **Prime Automotive Group acquisition for ~$880 million** is expected to add 30 dealerships and **$1.8 billion in annual revenues**[100](index=100&type=chunk) - The AcceleRide® online retail platform saw U.S. total online retail unit sales **increase by 67.8%** in Q3 2021 compared to Q3 2020[104](index=104&type=chunk) - Global semiconductor chip shortages have severely impacted new vehicle inventory, with days' supply dropping to approximately **14 days** at the end of Q3 2021[112](index=112&type=chunk) [Results of Operations - Consolidated](index=27&type=section&id=Results%20of%20Operations%20-%20Consolidated) Reports a 15.4% consolidated revenue increase in Q3 2021, driven by strong used vehicle sales and higher new vehicle margins Consolidated Operating Highlights - Q3 2021 vs Q3 2020 (Reported) | Metric | Q3 2021 | Q3 2020 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $3,509.2M | $3,039.6M | 15.4% | | Total Gross Profit | $653.2M | $512.0M | 27.6% | | New Vehicle Units Sold | 35,126 | 39,869 | (11.9)% | | Used Vehicle Retail Units Sold | 43,240 | 38,347 | 12.8% | | New Vehicle Gross Profit per Unit | $4,773 | $2,489 | 91.8% | | Used Vehicle Retail Gross Profit per Unit | $2,279 | $1,854 | 23.0% | | SG&A as % of Gross Profit | 59.0% | 59.7% | (0.8)% | Consolidated Operating Highlights - Nine Months 2021 vs 2020 (Reported) | Metric | Nine Months 2021 | Nine Months 2020 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $10,219.7M | $7,861.7M | 30.0% | | Total Gross Profit | $1,805.1M | $1,287.2M | 40.2% | | New Vehicle Units Sold | 114,882 | 101,701 | 13.0% | | Used Vehicle Retail Units Sold | 126,301 | 105,665 | 19.5% | | SG&A as % of Gross Profit | 59.8% | 67.7% | (7.8)% | [Results of Operations - U.S. Segment](index=32&type=section&id=Results%20of%20Operations%20-%20U.S.%20Segment) The U.S. segment's total revenues grew 18.6% in Q3 2021, driven by strong used vehicle sales and higher new vehicle margins U.S. Segment Operating Highlights - Q3 2021 vs Q3 2020 (Reported) | Metric | Q3 2021 | Q3 2020 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $2,662.4M | $2,244.6M | 18.6% | | Total Gross Profit | $535.0M | $415.7M | 28.7% | | New Vehicle Units Sold | 25,984 | 27,980 | (7.1)% | | New Vehicle Gross Profit per Unit | $5,388 | $2,852 | 88.9% | | F&I PRU | $2,261 | $2,030 | 11.4% | - U.S. new vehicle inventory supply was only **11 days** at September 30, 2021, a sharp decrease from 41 days in the prior year[127](index=127&type=chunk) [Results of Operations - U.K. Segment](index=39&type=section&id=Results%20of%20Operations%20-%20U.K.%20Segment) The U.K. segment's revenues rose 1.3% in Q3 2021, though same-store sales declined due to severe new vehicle supply constraints U.K. Segment Operating Highlights - Q3 2021 vs Q3 2020 (Reported) | Metric | Q3 2021 | Q3 2020 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $750.4M | $740.8M | 1.3% | | Total Gross Profit | $103.7M | $87.6M | 18.3% | | New Vehicle Units Sold | 7,381 | 10,689 | (30.9)% | | New Vehicle Gross Profit per Unit | $2,910 | $1,571 | 85.2% | | F&I PRU | $857 | $739 | 15.9% | - On a constant currency basis, U.K. same-store revenues **decreased 14.6%** in Q3 2021, driven by a **38.6% drop in new vehicle unit sales**[143](index=143&type=chunk) [Results of Operations - Brazil Segment](index=45&type=section&id=Results%20of%20Operations%20-%20Brazil%20Segment) The Brazil segment showed strong recovery in Q3 2021, with revenues increasing 77.7% as operations normalized post-COVID Brazil Segment Operating Highlights - Q3 2021 vs Q3 2020 (Reported) | Metric | Q3 2021 | Q3 2020 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $96.4M | $54.3M | 77.7% | | Total Gross Profit | $14.5M | $8.6M | 68.7% | | New Vehicle Units Sold | 1,761 | 1,200 | 46.8% | | New Vehicle Gross Profit per Unit | $3,510 | $2,196 | 59.8% | | SG&A as % of Gross Profit | 60.9% | 79.9% | (19.0)% | - On a constant currency basis, Brazil's same-store revenues **increased 73.1%** in Q3 2021, reflecting a strong recovery[155](index=155&type=chunk) [Liquidity and Capital Resources](index=52&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with sufficient capital to fund operations and the upcoming Prime Acquisition - As of September 30, 2021, the company had **$296.9 million of cash** on hand and total immediate liquidity of **$913.9 million**[195](index=195&type=chunk) - The company generated **$593.8 million in adjusted net cash from operating activities** for the nine months ended September 30, 2021[180](index=180&type=chunk)[182](index=182&type=chunk) - A commitment letter for a **$250.0 million unsecured bridge loan** has been secured to partially finance the Prime Acquisition[193](index=193&type=chunk) - During the first nine months of 2021, the company **repurchased $18.6 million of common stock** and paid dividends totaling **$17.2 million**[197](index=197&type=chunk)[198](index=198&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=56&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is primarily exposed to market risks from interest rate fluctuations and foreign currency exchange rate changes - A **100 basis-point change in interest rates** would impact annual interest expense by approximately **$1.2 million**[201](index=201&type=chunk) - A hypothetical **10% devaluation of the GBP and BRL** would have decreased nine-month 2021 revenues by **$181.9 million** and **$20.7 million**, respectively[204](index=204&type=chunk) [Item 4. Controls and Procedures](index=57&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal controls over financial reporting were effective - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of September 30, 2021[206](index=206&type=chunk) - **No material changes** in internal control over financial reporting were identified during Q3 2021[208](index=208&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=58&type=section&id=Item%201.%20Legal%20Proceedings) The company is not a party to any legal proceedings expected to have a material adverse effect on its financial results - The company is **not party to any legal proceedings** expected to have a material adverse effect on its business[210](index=210&type=chunk) [Item 1A. Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors) Highlights significant risks from the semiconductor shortage, the Prime Acquisition, and potential changes to sales models - The global semiconductor chip shortage has reduced new vehicle days' supply to **14 days**, posing a material risk to financial results[214](index=214&type=chunk) - The **Prime Acquisition** presents numerous risks, including integration difficulties and potential for unanticipated liabilities[220](index=220&type=chunk)[221](index=221&type=chunk) - There is a risk that the company may **not obtain necessary manufacturer approvals** for the Prime Acquisition dealerships[217](index=217&type=chunk)[219](index=219&type=chunk) - Vehicle manufacturers in the U.K. are exploring an **agency model** for new vehicle sales, which could alter the company's business model[216](index=216&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=60&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered sales of equity securities and no share repurchases during the third quarter of 2021 - **No shares of common stock were repurchased** during the three months ended September 30, 2021[228](index=228&type=chunk) - As of September 30, 2021, the company had **$150.1 million available** under its current share repurchase authorization[228](index=228&type=chunk) [Item 6. Exhibits](index=60&type=section&id=Item%206.%20Exhibits) Lists key exhibits filed with the Form 10-Q, including agreements for the Prime Acquisition and required certifications - Key exhibits filed include the **Purchase Agreement for the Prime Acquisition**, a financing Commitment Letter, and CEO/CFO certifications[231](index=231&type=chunk)

Group 1 Automotive, Inc. (NYSE:GPI) Q3 2021 Earnings Conference Call October 28, 2021 10:00 AM ET Company Participants Peter DeLongchamps - SVP, Manufacturer Relations, Financial Services and Public Affairs Earl Hesterberg - Chief Executive Officer Daryl Kenningham - President, U.S. and Brazilian Operations Daniel McHenry - Chief Financial Officer Conference Call Participants Michael Ward - The Benchmark Company John Murphy - Bank of America Richard Nelson - Stephens Inc. David Whiston - Morningstar, Inc. R ...