Group 1 Automotive(US:GPI)2022-10-28 18:30Financial Performance - Total revenues for Q3 2022 reached $4,163.4 million, a 22.0% increase from $3,412.8 million in Q3 2021[23]. - Net income for Q3 2022 was $195.7 million, compared to $172.1 million in Q3 2021, reflecting a 13.5% year-over-year growth[24]. - Gross profit for the nine months ended September 30, 2022, was $2,245.8 million, up from $1,769.5 million in the same period of 2021, representing a 27.0% increase[23]. - New vehicle retail sales for Q3 2022 were $1,883.3 million, a 24.4% increase from $1,513.9 million in Q3 2021[23]. - Used vehicle retail sales increased to $1,488.6 million in Q3 2022, up 20.9% from $1,230.4 million in Q3 2021[23]. - The company reported a basic earnings per share of $12.53 for Q3 2022, compared to $9.37 for Q3 2021, marking a 33.0% increase[23]. - Net income for the nine months ended September 30, 2022, was $594.6 million, an increase from $465.0 million in the same period of 2021, representing a year-over-year growth of approximately 27.8%[32]. - Total revenues of the company for the nine months ended September 30, 2022, were $12,153.1 million, compared to $9,992.3 million for the same period in 2021, reflecting a year-over-year increase of 21.6%[39]. Assets and Liabilities - Total current assets as of September 30, 2022, were $1,695.1 million, slightly up from $1,666.2 million at the end of 2021[19]. - Total assets increased to $6,251.5 million as of September 30, 2022, compared to $5,749.4 million at the end of 2021[19]. - Retained earnings increased to $2,922.3 million as of September 30, 2022, from $2,345.9 million at the end of 2021[21]. - The company’s total stockholders' equity rose to $2,214.1 million as of September 30, 2022, compared to $1,825.2 million at the end of 2021[21]. - Total debt as of September 30, 2022, was $1,953.0 million, a decrease from $2,046.7 million as of December 31, 2021[78]. - The total assets of the Brazil Discontinued Operations as of September 30, 2022, were $23.2 million, down from $89.5 million as of December 31, 2021[57]. Cash Flow and Investments - Cash provided by operating activities for the nine months ended September 30, 2022, was $533.4 million, compared to $1,117.5 million in the same period of 2021, indicating a decrease of about 52.3%[32]. - Total cash and cash equivalents at the end of the period were $20.5 million, down from $296.9 million at the end of the same period in 2021[32]. - The company reported a net cash used in investing activities of $325.9 million for the nine months ended September 30, 2022, compared to $163.5 million in the same period of 2021, reflecting an increase in investment activity[32]. - The company reported a net cash used in financing activities of $198.4 million for the nine months ended September 30, 2022, compared to $742.2 million in the same period of 2021, indicating a reduction in financing outflows[32]. - The company anticipates generating sufficient cash flows from operations to fund working capital requirements and service debt[199]. Shareholder Returns - The company declared dividends of $0.38 per share in 2022, totaling $6.0 million, compared to $1.11 per share in 2021, totaling $18.2 million[30]. - The company purchased treasury stock amounting to $105.4 million during the nine months ended September 30, 2022[30]. - During the nine months ended September 30, 2022, 2,047,658 shares were repurchased at an average price of $175.58 per share, totaling $359.5 million[213]. Market and Economic Conditions - The U.S. GDP shrank for the second consecutive quarter as of June 30, 2022, indicating a potential recession[104]. - The impact of geopolitical conflicts has led to increased inflationary pressures and supply chain disruptions, affecting material availability and costs[103]. - The GBP to USD foreign currency exchange rate declined by 8.3% from £1 to $1.21 at June 30, 2022, to £1 to $1.11 at September 30, 2022[105]. Operational Highlights - The Company completed the Brazil Disposal on July 1, 2022, for approximately BRL 510.0 million in cash, with a holdback amount of BRL 115.0 million held in escrow for five years[34][47]. - The Prime Acquisition, completed in November 2021, involved 28 dealerships and was valued at $967.6 million, with revenues attributable to Prime for the three months ended September 30, 2022, amounting to $448.0 million[41][43]. - The Company entered into a foreign currency derivative to mitigate exchange rate risks associated with the Brazil Disposal, settling it for a loss of $8.4 million[50]. - The Company incurred a loss of $122.8 million related to currency translation adjustments on the Brazil Disposal, which was reclassified into earnings upon the sale[49]. Sales Performance - Retail new vehicles sold increased by 5,872 units, or 17.6%, from 33,365 units in 2021 to 39,237 units in 2022[111]. - Average sales price per new vehicle retail increased by $2,626, or 5.8%, from $45,373 in 2021 to $47,999 in 2022[111]. - Total revenues in the U.S. increased by $2.0 billion, or 25.3%, compared to the same period in 2021, primarily driven by store acquisitions[141]. - Same store revenues in the U.S. increased by $289.7 million, or 3.7%, compared to the prior year, mainly due to higher revenues from used vehicle retail sales, parts and service sales, and F&I, net[142].