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Mar 31, 2020
Group 1 Automotive Q1 2020 Earnings Report
Reported a decrease in revenue and earnings due to the impact of COVID-19, which negatively affected all regions starting in early March. The company focused on fulfilling customer needs within government mandates and resizing the business to lower activity levels.
Key Takeaways
Group 1 Automotive reported a decrease in total revenue by 4.2% to $2.7 billion for the first quarter of 2020. Net income was $29.8 million, with diluted earnings per share at $1.61. The results were impacted by 'shelter in place' mandates related to COVID-19, which significantly affected sales and service operations across all regions.
Total revenue decreased by 4.2% to $2.7 billion.
Net income was $29.8 million, or $1.61 per diluted share.
F&I gross profit per retail unit increased by 6.8% to $1,559.
Aggressive cost reduction actions were taken, including employee furloughs and cuts in various cost categories.
Group 1 Automotive
Group 1 Automotive
Group 1 Automotive Revenue by Segment
Group 1 Automotive Revenue by Geographic Location
Revenue by Segment
New Vehicle Retail Sales Revenue
CapyFin.comUsed Vehicle Retail Sales Revenue
CapyFin.comUsed Vehicle Wholesale Sales Revenue
CapyFin.comParts and Service Sales Revenue
CapyFin.comFinance & Insurance Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.comUnited Kingdom Revenue
CapyFin.com Forward Guidance
The Company expects second quarter results to be significantly lower than the prior year due to the potential long-term impact of COVID-19 pandemic. Service is anticipated to recover more quickly than vehicle sales, with both beginning to recover in the late spring and summer months as shelter in place policies continue to be lifted and consumers transition to more normal habits.
Positive Outlook
- Improvements in weekly sales pace in the U.S.
- Recall of some furloughed workers, with plans to add back 495 positions by June.
- Anticipation of service recovering more quickly than vehicle sales.
- Expectation of recovery in the late spring and summer months as shelter in place policies are lifted.
- Consumers transitioning to more normal habits.
Challenges Ahead
- Potential long-term impact of COVID-19 pandemic.
- Second quarter results expected to be significantly lower than the prior year.
- Shelter in place orders remain in effect across the U.K.
- Stores are closed except for providing service to essential workers’ vehicles in the U.K.
- Service in the U.K. does not generate material gross profit.
Revenue & Expenses
Visualization of income flow from segment revenue to net income