Group 1 Automotive Reports Record Second-Quarter Results
Higher Gross Profits, Expense Control Overcome Japanese Brand Supply Shortage
(firmenpresse) - HOUSTON, TX -- (Marketwire) -- 07/26/11 -- (NYSE: GPI), a
Fortune 500 automotive retailer, today reported record second-quarter
earnings of $1.06 per diluted share on net income of $24.7 million for the
period ended June 30.
"Despite an industry SAAR nearly one million units below the first quarter
and severe supply shortages in the 62 percent of our business normally
represented by Japanese brands, Group 1's operating team turned in one of
the best profit performances in our company's history," said Earl J.
Hesterberg, Group 1's president and chief executive officer. "We were able
to generate revenue increases in every business segment, significantly
increase our new and used vehicle margins and maintain strong expense
controls in a constrained vehicle sales market."
Group 1 reported second-quarter total revenues of $1.5 billion, a 3.9
percent increase from the prior-year period. Gross profit grew 7.7 percent
to $244.2 million, as the company successfully managed through the
low-inventory sales environment. Selling, general and administrative
expense as a percent of gross profit improved significantly to 75.0
percent, as the combination of continued cost control and expanding gross
profit significantly leveraged the cost structure.
Earnings per diluted share of $1.06 is the best second-quarter results
ever posted and the second-best quarter in the history of Group 1.
Pretax income of $39.7 million is the second highest ever for Group
1.
New vehicle revenues increased 3.1 percent on 4.0 percent fewer unit
sales.
New vehicle gross profit grew 20.3 percent, as gross profit increased
$455 to $2,252 per retail unit sold.
Retail used vehicle gross profit increased 6.2 percent on 3.8 percent
higher revenues, as gross profit increased $164, to $2,009 per retail
unit.
Parts and service revenues increased 5.2 percent, reflecting increases
in all segments of the business.
Finance and insurance gross profit per retail unit increased $125 to
$1,126, on higher finance income per contract and vehicle service contract
penetration rates.
Selling, general and administrative expense as a percent of gross
profit improved significantly to 75.0 percent, as total gross profit
notably outpaced expenses in the quarter.
Operating margin increased to 3.7 percent -- matching the best ever
quarterly result.
On a same-store basis, Group 1 reported 7.1 percent growth in gross profit
on 9.1 percent higher revenues, reflecting increases in all operating
segments from the prior year. New vehicle gross profit grew 13.8 percent on
10.3 percent higher revenues; used vehicle gross profit was 7.4 percent
higher on a 9.1 percent revenue increase; finance and insurance revenues
increased 12.3 percent on 3.9 percent more retail unit sales; and, parts
and service revenues were 3.7 percent higher. Selling, general and
administrative expenses as a percent of revenues improved 60 basis points
to 12.5 percent, as expenses grew at a slower pace than revenues.
During the second quarter, Group 1 repurchased 381,610 shares of its common
stock at an average price of $36.69 under a board-authorized $25.0 million
share repurchase program. At the end of the second quarter, $3.5 million
remained under the authorization.
As previously announced, in the second quarter Group 1 acquired BMW, MINI,
Ford, Buick and GMC franchises that are expected to generate $245.0 million
in total estimated annualized revenues. Year to date, the company has
acquired seven franchises estimated to generate $340.0 million in
annualized revenues including the second-quarter acquisitions.
Group 1 also announced that it disposed of a Mitsubishi and a Lincoln
franchise during the second quarter. In total, the two franchises generated
$4.1 million in trailing-12-month revenues.
Hesterberg added, "In addition to delivering very strong operating results
in the first half of 2011, Group 1 has used its cash to acquire attractive
brands in growing markets, increase our dividend and repurchase shares to
return value to our shareholders."
Group 1's senior management will host a conference call today at 10 a.m. ET
to discuss the second-quarter financial results and the company's outlook
and strategy.
The conference call will be simulcast live on the Internet at
, then click on 'Investor Relations' and then 'Events' or
through this link: . A replay
will be available for 30 days.
The conference call will also be available live by dialing in 10 minutes
prior to the start of the call at:
Domestic:
International:
Participant Passcode:
A telephonic replay will be available following the call through Aug. 25 by
dialing:
Domestic:
International:
Replay Passcode:
Group 1 owns and operates 105 automotive dealerships, 134 franchises, and
28 collision service centers in the United States and the United Kingdom
that offer 29 brands of automobiles. Through its dealerships, the company
sells new and used cars and light trucks; arranges related financing,
vehicle service and insurance contracts; provides maintenance and repair
services; and sells replacement parts.
This press release contains "forward-looking statements," which are
statements related to future, not past, events and are based on our current
expectations and assumptions regarding our business, the economy and other
future conditions. In this context, the forward-looking statements often
include statements regarding our goals, plans, projections and guidance
regarding our financial position, results of operations, market position,
pending and potential future acquisitions and business strategy, and often
contain words such as "expects," "anticipates," "intends," "plans,"
"believes," "seeks," "may" or "will" and similar expressions. Any such
forward-looking statements are not assurances of future performance and
involve risks and uncertainties that may cause actual results to differ
materially from those set forth in the statements. These risks and
uncertainties include, among other things, (a) general economic and
business conditions, (b) the level of manufacturer incentives, (c) the
future regulatory environment, (d) our ability to obtain an inventory of
desirable new and used vehicles, (e) our relationship with our automobile
manufacturers and the willingness of manufacturers to approve future
acquisitions, (f) our cost of financing and the availability of credit for
consumers, (g) our ability to complete acquisitions and dispositions and
the risks associated therewith, (h) foreign exchange controls and currency
fluctuations, and (i) our ability to retain key personnel. These factors,
as well as additional factors that could affect our forward-looking
statements, are described in our Form 10-K under the headings "Business--
Risk Factors" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations." We urge you to carefully consider
this information. We undertake no duty to update our forward-looking
statements, including our earnings outlook, whether as a result of new
information, future developments or otherwise, except as may be required by
law.
Investor contacts:
Kim Paper Canning
Manager, Investor Relations
Group 1 Automotive Inc.
713-647-5741 |
Media contacts:
Pete DeLongchamps
V.P. Manufacturer Relations and Public Affairs
Group 1 Automotive Inc.
713-647-5770 |
or
Clint Woods
Pierpont Communications, Inc.
713-627-2223 |
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Unternehmensinformation / Kurzprofil:
Datum: 26.07.2011 - 10:00 Uhr
Sprache: Deutsch
News-ID 37561
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contact information:
Town:
HOUSTON, TX
Kategorie:
Cars
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