Group 1 Automotive Inc. (GPI, Financial) filed Quarterly Report for the period ended 2012-09-30.
Group 1 Automotive Inc has a market cap of $1.41 billion; its shares were traded at around $59.64 with a P/E ratio of 14.7 and P/S ratio of 0.2. The dividend yield of Group 1 Automotive Inc stocks is 1%. Group 1 Automotive Inc had an annual average earning growth of 4.8% over the past 5 years.
Coupled with the increase in SAAR, we believe the focus that we have placed on improving our dealership sales processes has contributed to increased Same Store new vehicle sales and profit. In addition, the recovery by our major import brand OEM partners from the natural disasters in Japan in 2011 led to the normalization of inventory levels and bolstered new vehicle sales. Our Same Store new vehicle retail sales revenues increased 20.2%, primarily as a result of increased new vehicle retail unit sales of 22.1% for the three months ended September 30, 2012, as compared to the same period in 2011. From a mix standpoint, we generated the majority of the volume increase through our import brands, which sold 31.1% more units in the third quarter of 2012, as compared to the same period in 2011. Same Store revenues for the three months ended September 30, 2012 improved 29.8% in our import brands, as compared to the same period in 2011, as well as 15.6% and 9.4% in our luxury and domestic categories, respectively. The mix shift effect on revenues from the normalization of import brand inventories contributed to a decline in our Same Store revenues per retail unit (PRU), which decreased 1.6% to $32,948 in the third quarter of 2012, as compared to the same period in 2011. The level of retail sales, as well as our own ability to retain or grow market share during the future periods, is difficult to predict.
For the nine months ended September 30, 2012, as compared to the same period in 2011, Same Store new vehicle retail unit sales increased 17.1% and retail sales revenues increased 16.5%. Same Store retail unit sales increased 22.3%, 16.7%, and 7.3% in our import, domestic, and luxury categories, respectively. Our Same Store new vehicle retail sales revenues PRU were down 0.5% to $32,777 for the nine months ended September 30, 2012, as compared to the same period in 2011. Gross profit PRU decreased 7.7% to $1,895 in the first nine months of 2012 from the same period in 2011, and, as a result, our gross margin decreased 40 basis points from 6.2% to 5.8% for the nine months ended 2012, as compared to the same period in 2011.
The improved selling environment, coupled with our emphasis on improving our dealership sales processes resulted in an increase in our Same Store used vehicle retail units sales of 10.9% for the three months ended September 30, 2012, as compared to the same period in 2011. In addition, our average used vehicle retail selling price increased by $347 to $20,439 during the three months ended September 30, 2012 from the same period in 2011. These factors drove a 12.8% increase in our Same Store used vehicle retail revenues. For the nine months ended September 30, 2012, our Same Store used vehicle retail revenues improved by 16.8% as a result of a 14.8% increase in Same Store used vehicle retail unit sales, as compared to the same period in 2011, as well as an increase in our average selling price PRU of 1.7% to $20,342.
Our focus on improving our finance and insurance business processes, coupled with improved retail vehicle sales volumes, continues to generate growth in finance and insurance revenues. Our Same Store finance and insurance revenues increased by 26.2% to $65.0 million for the three months ended September 30, 2012, as compared to the same period in 2011. This improvement was primarily driven by a 17.3% increase in new and used vehicle unit sales, along with an increase in penetration rates for finance and vehicle service contracts of 90 basis points and 190 basis points, respectively. In addition, income per contract in our vehicle service contract segment increased by 3.4% for the three months ended September 30, 2012, as compared to the same period in 2011, as well as in most of our other product offerings. These increases more than offset an increase in our chargeback expense. As a result, our Same Store revenues PRU for the three months ended September 30, 2012 improved 7.5%, or $87, to $1,243, as compared to the same period in 2011.
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Group 1 Automotive Inc has a market cap of $1.41 billion; its shares were traded at around $59.64 with a P/E ratio of 14.7 and P/S ratio of 0.2. The dividend yield of Group 1 Automotive Inc stocks is 1%. Group 1 Automotive Inc had an annual average earning growth of 4.8% over the past 5 years.
Highlight of Business Operations:
For the three months ended September 30, 2012, total revenues increased 25.9% from 2011 levels to $2.0 billion and gross profit improved 17.1% to $291.2 million. For the nine months ended September 30, 2012, total revenues increased 24.3% from 2011 levels to $5.5 billion and gross profit improved 17.1% to $837.0 million. Operating income increased for the three and nine months ended September 30, 2012 by 33.9% and 28.1%, respectively, from 2011 to $67.1 million and $184.1 million, respectively. Income before income taxes increased to $49.5 million for the third quarter of 2012, which was a 43.6% improvement over the same period from the prior year. For the first nine months of 2012, income before income taxes increased 34.6% to $132.8 million. For the three months ended September 30, 2012 and 2011, we realized net income of $31.3 million and $21.5 million, respectively, and diluted income per share of $1.32 and $0.91, respectively. For the nine months ended September 30, 2012 and 2011, we realized net income of $83.1 million and $61.5 million, respectively, and diluted income per share of $3.50 and $2.57, respectively. For the nine months ended September 30, 2012, our net cash provided was $23.9 million and in the same period of 2011, our net cash used was $8.5 million.Coupled with the increase in SAAR, we believe the focus that we have placed on improving our dealership sales processes has contributed to increased Same Store new vehicle sales and profit. In addition, the recovery by our major import brand OEM partners from the natural disasters in Japan in 2011 led to the normalization of inventory levels and bolstered new vehicle sales. Our Same Store new vehicle retail sales revenues increased 20.2%, primarily as a result of increased new vehicle retail unit sales of 22.1% for the three months ended September 30, 2012, as compared to the same period in 2011. From a mix standpoint, we generated the majority of the volume increase through our import brands, which sold 31.1% more units in the third quarter of 2012, as compared to the same period in 2011. Same Store revenues for the three months ended September 30, 2012 improved 29.8% in our import brands, as compared to the same period in 2011, as well as 15.6% and 9.4% in our luxury and domestic categories, respectively. The mix shift effect on revenues from the normalization of import brand inventories contributed to a decline in our Same Store revenues per retail unit (PRU), which decreased 1.6% to $32,948 in the third quarter of 2012, as compared to the same period in 2011. The level of retail sales, as well as our own ability to retain or grow market share during the future periods, is difficult to predict.
For the nine months ended September 30, 2012, as compared to the same period in 2011, Same Store new vehicle retail unit sales increased 17.1% and retail sales revenues increased 16.5%. Same Store retail unit sales increased 22.3%, 16.7%, and 7.3% in our import, domestic, and luxury categories, respectively. Our Same Store new vehicle retail sales revenues PRU were down 0.5% to $32,777 for the nine months ended September 30, 2012, as compared to the same period in 2011. Gross profit PRU decreased 7.7% to $1,895 in the first nine months of 2012 from the same period in 2011, and, as a result, our gross margin decreased 40 basis points from 6.2% to 5.8% for the nine months ended 2012, as compared to the same period in 2011.
The improved selling environment, coupled with our emphasis on improving our dealership sales processes resulted in an increase in our Same Store used vehicle retail units sales of 10.9% for the three months ended September 30, 2012, as compared to the same period in 2011. In addition, our average used vehicle retail selling price increased by $347 to $20,439 during the three months ended September 30, 2012 from the same period in 2011. These factors drove a 12.8% increase in our Same Store used vehicle retail revenues. For the nine months ended September 30, 2012, our Same Store used vehicle retail revenues improved by 16.8% as a result of a 14.8% increase in Same Store used vehicle retail unit sales, as compared to the same period in 2011, as well as an increase in our average selling price PRU of 1.7% to $20,342.
Our focus on improving our finance and insurance business processes, coupled with improved retail vehicle sales volumes, continues to generate growth in finance and insurance revenues. Our Same Store finance and insurance revenues increased by 26.2% to $65.0 million for the three months ended September 30, 2012, as compared to the same period in 2011. This improvement was primarily driven by a 17.3% increase in new and used vehicle unit sales, along with an increase in penetration rates for finance and vehicle service contracts of 90 basis points and 190 basis points, respectively. In addition, income per contract in our vehicle service contract segment increased by 3.4% for the three months ended September 30, 2012, as compared to the same period in 2011, as well as in most of our other product offerings. These increases more than offset an increase in our chargeback expense. As a result, our Same Store revenues PRU for the three months ended September 30, 2012 improved 7.5%, or $87, to $1,243, as compared to the same period in 2011.
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