Group 1 Automotive(US:GPI)2024-07-24 21:17Financial Performance - Total revenues for Q2 2024 reached $4,696.4 million, a 3.0% increase from $4,558.5 million in Q2 2023[128]. - Net income for Q2 2024 was $138.2 million, down 18.9% from $170.5 million in Q2 2023[131]. - Basic earnings per share from continuing operations decreased to $10.20, compared to $12.06 in the same quarter last year[128]. - Gross profit for the six months ended June 30, 2024, was $1,509.1 million, slightly up from $1,503.4 million in 2023[128]. - Total revenues for the six months ended June 30, 2024, were $4,696.4 million, down from $9,166.9 million in the same period of 2023, reflecting a decline of 48.7%[167]. - Net income for the six months ended June 30, 2024, was $286.1 million, a decrease of 13.0% from $329.0 million in the same period of 2023[157]. - Total gross profit decreased by 3.2% to $1,398.7 million from $1,444.4 million[226]. - Total revenues grew by 3.0% year-over-year, with a constant currency change of 2.9%[236]. Assets and Liabilities - Total assets increased to $8,850.3 million as of June 30, 2024, up from $7,774.1 million at December 31, 2023, representing a growth of 13.8%[127]. - Total liabilities reached $5,984.0 million, up from $4,799.5 million, indicating a growth of 24.8%[127]. - Long-term debt increased to $2,279.3 million from $1,989.4 million, which is a rise of 14.6%[127]. - Current liabilities increased to $3,097.7 million from $2,505.7 million, reflecting a rise of 23.6%[127]. - As of June 30, 2024, total debt increased to $2,460.6 million from $2,107.5 million as of December 31, 2023, representing a 16.7% increase[182]. Cash Flow and Investments - Net cash provided by operating activities decreased to $129.8 million for the six months ended June 30, 2024, compared to $239.0 million in 2023, a decline of 45.9%[157]. - The company reported a net cash used in investing activities of $669.0 million for the six months ended June 30, 2024, compared to $369.1 million in 2023, an increase of 81.2%[157]. - The company reported a net cash provided by financing activities of $546.4 million for the six months ended June 30, 2024, compared to $103.0 million in 2023, an increase of 429.3%[157]. Stock and Shareholder Information - During the Current Year, 352,920 shares were repurchased at an average price of $282.81 per share, totaling $99.8 million[95]. - As of June 30, 2024, $204.6 million remained available under the current stock repurchase authorization[95]. - The company declared dividends of $0.47 per share, totaling $6.4 million[143]. - The balance of common stock shares decreased from 25,131,460 to 25,092,785 from December 31, 2023, to June 30, 2024[143]. Operational Highlights - The company activated cyber incident response procedures in response to a cybersecurity incident experienced by CDK, ensuring no breach of PII occurred[111]. - The company does not expect the recent CDK Global cybersecurity incident to materially impact its overall financial condition or ongoing results of operations[207]. - The Company operates 147 dealerships in the U.S. and 55 dealerships in the U.K. as of June 30, 2024[216]. Sales Performance - New vehicle retail sales amounted to $2,364.2 million, up 5.4% from $2,243.2 million year-over-year[128]. - Used vehicle retail sales were $1,453.2 million, a marginal increase from $1,450.6 million year-over-year[128]. - Retail new vehicles sold increased by 2.9% to 83,632 units, compared to 81,241 units in 2023[226]. - New vehicle retail sales increased to $4,134.9 million in 2024, up 2.3% from $4,042.8 million in 2023[226]. Cost and Expenses - Total cost of sales for Q2 2024 was $3,929.8 million, an increase of 3.9% from $3,783.0 million in Q2 2023[128]. - SG&A expenses rose to $956.8 million, a 5.1% increase from $910.8 million[226]. - Floorplan interest expense increased significantly by 58.0% to $24.7 million in 2024 from $15.6 million in 2023[236]. Compliance and Legal Matters - The company does not anticipate any material liquidity constraints or issues with compliance with debt covenants[93]. - The company has no ongoing legal proceedings that are expected to materially affect its financial condition[84]. - The company’s management evaluated the effectiveness of disclosure controls and procedures, concluding they were effective as of June 30, 2024[82].