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Group 1 Automotive, Inc. (NYSE: GPI) is a leading automotive retailer that operates 203 dealerships, 265 franchises, and 43 collision centers in the United States and the United Kingdom. The company offers a wide range of automobile brands, including premium luxury and mainstream vehicles, and is headquartered in Houston, Texas. Since its foundation in 1995, the company has grown significantly, particularly through strategic acquisitions and efficient integration of new dealerships.
In 2023, Group 1 reported record revenues of $17.9 billion, driven by strong performance across all lines of business. Notably, Texas alone contributed 38% of the new-vehicle unit volume. The company's U.K. operations also performed well, generating $3.1 billion in revenue. In a significant development, Group 1 plans to close the acquisition of Inchcape UK's retail business in the third quarter of 2024, adding approximately $3 billion in revenue and increasing the company's total store count to over 250.
Group 1's operations encompass new and used car sales, vehicle financing, service contracts, automotive maintenance, repair services, and parts sales. The company has recently completed numerous acquisitions, including high-performing dealerships in Maryland, California, and the greater Washington, DC area, expected to generate hundreds of millions in annual revenues.
Despite challenges such as declining margins in new vehicle sales and increased SG&A expenses, the company continues to execute its growth strategy effectively. In the first quarter of 2024, Group 1 reported revenues of $4.5 billion and net income from continuing operations of $147.4 million. The company also announced a $500 million upsize in its revolving syndicated credit facility to $2.5 billion, ensuring ample liquidity for future growth.
Group 1 is proactive in shareholder returns, having repurchased significant shares and increased its annual dividend rate. The company maintains robust relationships with major automobile manufacturers and financial institutions, which support its expansive financing capabilities and acquisition strategies.
Group 1 Automotive, Inc. (NYSE: GPI) is set to announce its financial results for Q3 2022 on October 26, 2022, before the market opens. CEO Earl J. Hesterberg and senior management will host a conference call at 10:00 a.m. ET to discuss these results. The call will be available for live streaming and replay on the company's website. Group 1 operates 203 dealerships across the U.S. and U.K., offering various automotive services including vehicle financing, maintenance, and parts sales.
Group 1 Automotive (NYSE: GPI) announced an expansion of its U.K. operations with the acquisition of a BMW/MINI dealership and a collision center in Southend, Essex. This boosts Group 1's U.K. footprint to 56 dealerships (79 franchises). The acquisition is anticipated to generate $80 million in annual revenues, raising year-to-date acquired revenues to $740 million. CEO Earl Hesterberg emphasized the strength of their relationship with BMW, marking this as a strategic addition to their growing U.K. business.
Group 1 Automotive (NYSE:GPI) announced a leadership transition as CEO Earl Hesterberg will retire on December 31, 2022. Daryl Kenningham, current President of U.S. Operations, has been appointed as President and COO and will become CEO on January 1, 2023. Hesterberg, who joined Group 1 in 2005, significantly expanded the company's U.S. and U.K. operations, increasing revenues threefold. Kenningham, with over 30 years in the automotive industry, aims to leverage his experience to enhance the company's growth in a dynamic marketplace.
Group 1 Automotive (NYSE: GPI) announced an increase in its stock repurchase authorization by $130 million, bringing the total to $250 million. The company reported a year-to-date repurchase of 1,546,856 shares at an average price of $176.80. Additionally, it declared a quarterly cash dividend of $0.38 per share, a 2.7% increase from the previous quarter. This strategic move reflects Group 1's strong cash flow and commitment to returning value to shareholders.
Group 1 Automotive, Inc. (GPI) reported record quarterly revenues of $4.1 billion for Q2 2022, reflecting a 14.3% increase year-over-year. Diluted earnings per share reached $12.11, an 18.3% rise from $10.23 in the previous year. Growth was driven by a 34.0% increase in parts and service and a 20.3% surge in finance and insurance revenues. Notably, the company's acquisitions over the past 18 months are projected to add $3.0 billion in annual revenues. Despite continued constraints in new vehicle supply, the overall performance marks a significant milestone for the company.
Group 1 Automotive (NYSE: GPI) has acquired five dealerships in Shreveport, Louisiana, including Holmes Honda Shreveport and Holmes Volvo Cars, from the Holmes Auto Family. This acquisition is part of a broader trend of increasing buy/sell market share among import franchises, which reached 64% in 2021. Kerrigan Advisors facilitated the sale, marking their 160th dealership transaction since 2015. The Holmes Auto Family’s dealerships, known for high performance, are transitioning to new ownership, ensuring continued commitment to customer service and community outreach.
Group 1 Automotive, Inc. (NYSE: GPI) will release its financial results for Q2 2022 on July 27, 2022, before market open. The results will be discussed in a conference call at 10:00 a.m. ET, which will also be available via webcast. The company operates 204 dealerships across the U.S. and U.K., with 273 franchises and 47 collision centers. Group 1 provides various automotive services, including vehicle financing, maintenance, and sales of new and used vehicles.
Group 1 Automotive, Inc. (NYSE: GPI) has announced its acquisition of three dealerships and a collision center in Shreveport, Louisiana, from Holmes European Motors, L.L.C. The dealerships include Mercedes-Benz, Land Rover, Jaguar, and Volvo franchises, which are projected to bring in $110 million in annual revenues. This acquisition increases Group 1's year-to-date acquired revenue to $660 million. Additionally, the company disposed of a Hyundai franchise in Houston and a Volkswagen franchise in Boston, generating $75 million in annual revenues.
Group 1 Automotive (GPI) has announced the sale of its Brazilian operations for BRL 510 million to Original Holdings S.A., marking a strategic exit from the market. This subsidiary operated 16 dealerships with BRL 1.7 billion in annual revenue as of 2021. The company also reported a year-to-date share repurchase of 1,437,729 shares at an average price of $176.74, totaling $254.1 million, which represents 8.3% of outstanding shares. Group 1 aims to reinvest in growth opportunities within the U.S. and U.K.
Group 1 Automotive (NYSE: GPI) announced an increase in its common stock repurchase authorization by $175 million to a total of $250 million. Year-to-date, the company has repurchased 796,060 shares at an average price of $179.72, accounting for 4.6% of its outstanding shares. Additionally, the board declared a cash dividend of $0.37 per share, marking a 2.8% increase from the previous quarter, payable on June 15, 2022. Strong cash flow supports these initiatives, reinforcing the company's commitment to returning value to shareholders.
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