Group 1 Automotive Inc.
) posted a 19.6% rise in earnings per share to $1.16 in the first
quarter of 2013 from 97 cents in the prior-year quarter and
outpaced the Zacks Consensus Estimate of $1.04. Net income grew
26.5% to $29.2 million from $23.1 million in the first quarter of
Revenues increased 18% to $1.96 billion, beating the Zacks
Consensus Estimate of $1.89 billion. The year-over-year
improvement was driven by strong retail new vehicle and used
vehicle unit sales and higher revenues from Finance and insurance
Revenues from new vehicle sales escalated 21.7% to $1.1 billion
on an 18.5% increase in unit sales to 33,096 vehicles. Revenues
from retailed used vehicles improved 13.6% to $471.4 million on a
12% increase in unit sales to 23,238 vehicles.
Revenues from wholesale used vehicles went up 11.5% to $74.5
million. Used vehicles wholesaled increased 13.4% to 11,335
units. Revenues from parts and service business scaled up 11.5%
to $237.5 million. The company's finance and insurance business
witnessed a 22.6% rise in revenues to $70.1 million.
Gross profit increased 15.4% to $300.5 million from $260.4
million in the year-ago quarter. Operating income improved 8.6%
to $58.6 million from $54.0 million in the first quarter of 2012.
Revenues in the
business increased 8.5% to $1.7 billion due to a 10.3% increase
in new vehicle retail sale and 18.9% hike in revenues from
Finance and insurance business. New vehicle retail sales
augmented 7.4% to 28,778 units, while used vehicle retail sales
rose 6.1% to 21,116 units. Gross profit in the segment improved
8.8% to $272.9 million from $250.9 million in the year-ago
Revenues in the
business more than doubled to $171.1 million from $78.5 million
due to increases in new vehicle retail and used vehicle sales.
New vehicle retail sales augmented significantly to 2,827 units
from 1,147 units, while total used vehicle sales improved to
3,171 units from 1,544 units. Gross profit in the segment
enhanced to $19.2 million from $9.5 million in the year ago
Revenues in the
business, which was acquired on Feb 28, was $71.0 million in the
quarter. New vehicle retail sales were 1,491 units, while total
used vehicle sales was 629 units. Gross profit was $8.4 million
in the quarter.
Group 1 Automotive had cash and cash equivalents of $17.7 million
as of Mar 31, 2013, significantly up from $4.7 million as of Dec
31, 2012. Total debt amounted to $37.2 million as of Mar 31, 2013
compared with $31.4 million as of Dec 31, 2012. Debt to
capitalization ratio was 3.7% versus 3.5% a year ago.
During the quarter, Group 1 Automotive acquired four franchises
in the U.K and 22 franchises in Brazil, with combined annual
revenues of $827.0 million. It also disposed a franchise in
Calif. which generated annual revenues of $35.0 million in 2012.
Group 1 Automotive is one of the largest automotive retailers in
the U.S., which provides 35 automotive brands. It has 143
automotive dealerships, 182 franchises and 36 collision centers
in the U.S., U.K and Brazil. Currently, the company retains a
Zacks Rank #3 (Hold).
Some other stocks that are performing well in the industry where
Group 1 Automotive operates include
Asbury Automotive Group, Inc.
Lithia Motors Inc.
). All these companies carry a Zacks Rank #2 (Buy).
ASBURY AUTO GRP (ABG): Free Stock Analysis
AUTONATION INC (AN): Free Stock Analysis
GROUP 1 AUTO (GPI): Free Stock Analysis
LITHIA MOTORS (LAD): Free Stock Analysis
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