Business Services Industry
Group 1 Automotive Reports First-Quarter Earnings; Company Reaffirms 2004 Guidance; New Franchise Acquired
Business Wire, April 29, 2004
Group 1 Automotive, Inc.
Statements of Operations
(Unaudited) (Dollars in thousands, except per share amounts)
Three Months Ended
March 31,
-----------------------
2004 2003
----------- -----------
REVENUES:
New vehicle retail sales $675,977 $593,754
Used vehicle retail sales 230,655 225,198
Used vehicle wholesale sales 76,191 61,004
Parts & service sales 124,020 111,113
Retail finance fees 15,562 15,179
Vehicle service contract fees 15,546 15,198
Other F&I revenues, net 9,076 8,345
----------- -----------
Total revenues 1,147,027 1,029,791
COST OF SALES:
New vehicle retail sales 628,084 551,029
Used vehicle retail sales 202,085 197,058
Used vehicle wholesale sales 77,171 62,799
Parts & service sales 56,259 49,457
----------- -----------
Total cost of sales 963,599 860,343
Gross Profit 183,428 169,448
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 146,664 134,838
DEPRECIATION AND AMORTIZATION EXPENSE 4,088 3,250
----------- -----------
Income from operations 32,676 31,360
OTHER INCOME (EXPENSE):
Floorplan interest expense (4,639) (5,447)
Other interest expense, net (4,840) (2,369)
Loss on redemption of senior subordinated
notes (6,381) -
Other expense, net (24) (26)
----------- -----------
INCOME BEFORE INCOME TAXES 16,792 23,518
PROVISION FOR INCOME TAXES 6,305 8,702
----------- -----------
NET INCOME $10,487 $14,816
=========== ===========
Basic earnings per share $0.47 $0.66
Diluted earnings per share $0.45 $0.64
Weighted average shares outstanding:
Basic 22,523,499 22,363,602
Diluted 23,389,805 23,010,648
OTHER DATA:
Gross margin 16.0% 16.5%
Operating margin 2.8% 3.0%
Pretax income margin 1.5% 2.3%
Same store revenues 5.7% (7.8)%
Manufacturer floorplan assistance $6,699 $5,850
Retail new vehicles sold 24,432 22,177
Retail used vehicles sold 16,186 16,312
----------- -----------
Total retail sales 40,618 38,489
----------- -----------
Wholesale used vehicles sold 10,790 10,097
Group 1 Automotive, Inc.
Condensed Consolidated Balance Sheets
(Dollars in thousands)
March 31, December 31,
2004 2003
----------- ------------
(unaudited) (audited)
ASSETS:
Current assets:
Cash $32,315 $25,441
Contracts-in-transit and vehicle receivables 140,406 143,260
Inventories 766,937 671,279
Other assets 89,290 90,943
----------- ------------
Total current assets 1,028,948 930,923
----------- ------------
Property and equipment 144,163 131,647
Intangible assets 433,521 390,867
Investments and deferred costs from insurance
and vehicle service contract sales 27,214 28,263
Other assets 6,142 6,465
----------- ------------
Total assets $1,639,988 $1,488,165
=========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Floorplan notes payable $709,977 $493,568
Other interest-bearing liabilities 895 910
Accounts payable and accrued expenses 162,269 159,915
----------- ------------
Total current liabilities 873,141 654,393
----------- ------------
Debt 156,951 230,178
Other liabilities 45,442 44,730
----------- ------------
Total liabilities before deferred
revenues 1,075,534 929,301
----------- ------------
Deferred revenues 37,852 40,755
Stockholders' equity 526,602 518,109
----------- ------------
Total liabilities and stockholders'
equity $1,639,988 $1,488,165
=========== ============
OTHER DATA:
Working capital $155,807 $276,530
Current ratio 1.18 1.42
Long-term debt to capitalization 23% 31%
Last 12 months return on average equity 14% 16%
Group 1 Automotive, Inc.
First-Quarter Additional Information
(Unaudited)
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX 1Q 2004 1Q 2003
---------------------------------------- ------------- -------------
Oklahoma 12.7% 13.0%
Houston 12.5 13.2
New England 12.5 12.3
California 12.1 12.2
Central Texas 7.7 7.7
New Orleans 7.2 6.5
West Texas 7.2 7.4
Florida 6.7 8.2
Dallas 6.1 5.9
Atlanta 5.7 6.0
Beaumont 3.0 3.3
New Mexico 3.0 3.1
New Jersey 2.4 -
Denver 1.2 1.2
------------- -------------
Total 100.0% 100.0%
NEW VEHICLE UNIT SALES BRAND MIX 1Q 2004 1Q 2003
---------------------------------------- ------------- -------------
Toyota/Lexus 26.9% 25.3%
Ford 22.7 26.5
DaimlerChrysler 13.2 11.6
Nissan/Infiniti 11.6 9.9
GM 10.6 9.6
Honda/Acura 10.3 10.8
Other 4.7 6.3
------------- -------------
Total 100.0% 100.0%
% from Luxury Brands 12.1% 11.2%
Car / Truck Mix 41.7% / 58.3% 43.0% / 57.0%
Domestic / Imports Mix 44.6% / 55.4% 46.2% / 53.8%
INDIVIDUAL PRODUCT DATA 1Q 2004 1Q 2003
---------------------------------------- ------------- -------------
New vehicle retail gross margin 7.1% 7.2%
New vehicle gross profit per retail unit $1,960 $1,927
Retail used vehicle gross margin 12.0% 11.7%
Used vehicle gross profit per retail
unit $1,705 $1,615
Parts & service gross margin 54.6% 55.5%
Finance & insurance revenues, net per
retail unit $989 $1,006
SAME STORE REVENUES 1Q 2004 1Q 2003
---------------------------------------- ------------- -------------
New vehicle retail sales 7.3% (10.3)%
Used vehicle retail sales (2.0)% (8.9)%
Used vehicle wholesale sales 19.9% 3.0%
Parts & service sales 6.9% 3.5%
Finance & insurance revenues, net (1.6)% (5.9)%
Total revenues 5.7% (7.8)%
COPYRIGHT 2004 Business Wire
COPYRIGHT 2008 Gale, Cengage Learning
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