Group 1 Automotive(US:GPI)2024-11-01 16:34Financial Performance - Total revenues for Q3 2024 reached $5,221.4 million, a 10.9% increase from $4,705.1 million in Q3 2023[8] - New vehicle retail sales amounted to $2,567.6 million, up 13.4% from $2,264.5 million year-over-year[8] - Gross profit for Q3 2024 was $852.7 million, compared to $786.2 million in Q3 2023, reflecting an increase of 8.4%[8] - Net income for Q3 2024 was $117.3 million, down 28.4% from $163.9 million in Q3 2023[9] - Total revenues for the nine months ended September 30, 2024, reached $14,388.3 million, compared to $13,393.7 million in 2023, reflecting an increase of 7.4%[18][19] - Net income for the nine months ended September 30, 2024, was $403.3 million, a decrease of 18.1% from $492.9 million in 2023[14] Assets and Liabilities - Total assets increased to $9,976.5 million as of September 30, 2024, compared to $7,774.1 million at the end of 2023, representing a 28.4% growth[7] - Current liabilities rose to $3,623.9 million, a significant increase from $2,505.7 million at the end of 2023, marking a 44.7% increase[7] - The company’s long-term debt increased to $2,695.1 million, up from $1,989.4 million at the end of 2023, reflecting a 35.5% increase[7] Earnings and Dividends - The company reported a basic earnings per share of $8.74 for Q3 2024, down from $11.70 in Q3 2023[8] - The company declared dividends of $1.41 per share, totaling $19.1 million for the period[11] - The company declared dividends of $0.47 per share in Q3 2024, totaling $6.4 million[10] Inventory and Sales - The company’s inventories rose to $2,752.2 million, a 40.1% increase from $1,963.4 million at the end of 2023[7] - Retail new vehicle units sold rose to 53,775, an 18.6% increase from 45,350 units sold in Q3 2023[73] - Used vehicle retail sales increased to $1,656.5 million, a 6.2% rise from $1,559.6 million in Q3 2023[73] Acquisitions and Dispositions - The acquisition of Inchcape Retail was completed on August 1, 2024, for approximately $517.0 million, which included 54 dealership locations and three collision centers in the U.K.[20] - The Inchcape Acquisition contributed revenues of $333.8 million and net income of $5.1 million from the acquisition date through September 30, 2024[22] - The company acquired nine dealerships in the U.S. for a total consideration of $690.4 million, with associated goodwill of $287.8 million during the nine months ended September 30, 2024[25] - The company recorded a net pre-tax gain of $52.9 million from the disposition of eight dealerships and one collision center in the U.S. during the nine months ended September 30, 2024[25] Cash Flow and Financing - Total cash provided by operating activities for the nine months ended September 30, 2024, was $373.7 million, compared to $392.5 million in 2023[14] - Cash used in investing activities for the nine months ended September 30, 2024, was $1,209.3 million, compared to $345.8 million in 2023[14] - Cash paid for interest was $169.7 million for the nine months ended September 30, 2024, compared to $120.0 million for the same period in 2023[60] Market and Economic Conditions - The company expects to incorporate new segment reporting disclosures as per the FASB's ASU 2023-07, effective for fiscal years beginning after December 15, 2023[17] - The company is currently evaluating the impact of the FASB's ASU 2023-09 on its consolidated financial statements, which will be effective for fiscal years beginning after December 15, 2024[17] - Existing elevated prices from previous inflation rates continue to reduce disposable income for customers, contributing to a decline in used vehicle prices compared to the same period in 2023[68] Segment Performance - Total revenues for the three months ended September 30, 2024, were $5,221.4 million, with $3,971.1 million from the U.S. and $1,250.3 million from the U.K.[28] - Total revenues in the U.S. increased by $496.4 million, or 4.5%, for the nine months ended September 30, 2024, compared to the same period in 2023, driven by the acquisition of stores[94] - New vehicle retail sales in the U.K. reached $550.7 million, a 59.9% increase compared to the Prior Year[99] Interest and Debt Management - The company issued $500.0 million in aggregate principal of 6.375% Senior Notes due January 2030 on July 30, 2024[33] - The carrying value of the company's fixed-rate long-term debt as of September 30, 2024, was $1,393.0 million, with a fair value of $1,366.0 million[34] - The Company has increased its Revolving Credit Facility availability from $2.0 billion to $2.5 billion, with a potential increase to $3.0 billion[53] Shareholder Actions - The company repurchased treasury stock amounting to $130.7 million during the period[11] - The company repurchased 438,165 shares at an average price of $295.80 per share, totaling $129.6 million, with $174.8 million remaining under the current share repurchase authorization as of September 30, 2024[1]