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Sep 30, 2020
Group 1 Automotive Q3 2020 Earnings Report
Group 1 Automotive achieved record earnings per share and demonstrated strong cost leverage, with a rebound in U.K. performance.
Key Takeaways
Group 1 Automotive reported all-time record quarterly earnings per share, more than tripling from Q3 2019. Net income reached $126.4 million, with a total revenue of $3.0 billion.
Record earnings driven by resilient teammates and a responsive management team.
Targeted 20% efficiency improvement in sales and service processes.
SG&A as a percent of gross profit decreased below 60% for the first time.
U.K. business turned in a record performance with year-over-year growth in service and vehicle sales.
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 announced a new $200 million share repurchase program and expects to reinstate a quarterly cash dividend following its board meeting in mid-November 2020, payable in mid-December 2020.
Positive Outlook
- New $200 million share repurchase program announced.
- Purchases may be made based on market conditions and legal requirements.
- Quarterly cash dividend expected to be reinstated.
- Dividend payable in mid-December 2020.
- Continued focus on cost efficiency and strategic initiatives.
Challenges Ahead
- Future dividends subject to board approval.
- Share repurchases subject to covenant restrictions.
- Uncertainty regarding economic and business conditions.
- Potential impacts of COVID-19 on the business.
- Risks associated with foreign exchange controls and currency fluctuations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income