Group 1 Automotive Q4 2020 Earnings Report
Key Takeaways
Group 1 Automotive reported a strong fourth quarter with net income per diluted share increasing by 111.2 percent to $5.43 compared to Q4 2019. Total revenue decreased by 3.9 percent to $3.0 billion, while total gross profit increased by 3.7 percent to $481.7 million. The company highlighted significant improvements in U.S. technician and salesperson productivity, as well as cost structure improvements in the U.K. business.
Net income per diluted share increased 111.2% to $5.43 compared to Q4 2019.
Adjusted net income per diluted share increased 88.0% to $5.66 compared to Q4 2019.
Total revenue decreased 3.9% to $3.0 billion.
Total gross profit increased 3.7% to $481.7 million.
Group 1 Automotive
Group 1 Automotive
Group 1 Automotive Revenue by Segment
Group 1 Automotive Revenue by Geographic Location
Forward Guidance
Group 1 anticipates market recovery in both the U.S. and U.K., positioning the company to more actively pursue growth via acquisitions and through its core aftersales and used vehicle businesses.
Positive Outlook
- Expect long-term benefits from cost improvements as the market recovers in 2021.
- U.S. performance driven by continued cost discipline and a significant focus on margin retention.
- Continued growth in AcceleRide® platform, with 3,500 vehicles sold through the platform in 4Q20, a 65-percent increase over 4Q19.
- Restructured U.K. business to generate outstanding profits and establish an efficient cost structure.
- Focus on cost in Brazil.
Challenges Ahead
- Stringent lockdown orders in the U.K. continued to impact service operations and dealership sales.
- COVID-19 lockdowns closed showrooms in the U.K. for 41 of 92 days in Q4.
- Weak market in Brazil due to the pandemic.
- New vehicle revenues decreased 5.1 percent (-4.6 percent) on an 11.5 percent decrease in unit sales.
- Retail used vehicle revenues decreased 2.5 percent (-2.5 percent) on 10.9 percent lower unit sales.
Revenue & Expenses
Visualization of income flow from segment revenue to net income