Group 1 Automotive Reports Second Quarter 2024 Financial Results

Core Insights - Group 1 Automotive, Inc. reported a net income from continuing operations of $137.9 million for Q2 2024, a decrease of 19.0% compared to $170.3 million in the prior year quarter [7][20] - Total revenues reached $4.7 billion, marking a 3.0% increase from $4.6 billion in Q2 2023, driven by record new vehicle, parts and service, and finance and insurance revenues [20][22] - The company experienced challenges due to extreme weather events and a service outage from CDK Global, yet managed to achieve record revenues in several categories [6][23] Financial Performance - New vehicle retail sales amounted to $2.364 billion, up 5.4% from $2.243 billion in the prior year [2] - Used vehicle retail sales were $1.453 billion, showing a slight increase of 0.2% compared to $1.451 billion [2] - Total revenues for the current quarter were $4.696 billion, a 3.0% increase compared to $4.558 billion for the same period last year [22] Profitability Metrics - Gross profit for new vehicle retail sales was $170.0 million, down 15.6% from $201.5 million [2] - Total gross profit decreased by 1.2% to $766.5 million from $775.5 million in the prior year [2][19] - The gross margin for new vehicle retail sales was 7.2%, down from 9.0% [2] Unit Sales - Retail new vehicles sold totaled 47,661 units, a 6.5% increase from 44,740 units [2] - Retail used vehicles sold were 49,260 units, up 5.3% from 46,764 units [2] - Wholesale used vehicles sold increased by 12.6% to 11,819 units from 10,493 units [2] Earnings Per Share - Diluted earnings per share from continuing operations were $10.15, a decrease of 15.6% from $12.02 in the prior year [8][20] - Adjusted diluted earnings per share from continuing operations were $9.80, down 16.4% from $11.73 [8][20] Strategic Developments - The company is focused on acquiring Inchcape's U.K. retail automotive business, expected to enhance its market presence [6] - Year-to-date, Group 1 has successfully integrated dealership operations with total expected annual revenues of approximately $1.1 billion [25] - The company disposed of one dealership and one collision center, generating approximately $75 million in annual revenues [11] Share Repurchase Activity - During the current quarter, Group 1 repurchased 149,570 shares at an average price of $307.82, totaling $46 million [26] - Year-to-date, the company has repurchased 352,920 shares, representing about 2.6% of its outstanding common shares at the beginning of the year [26]