Group 1 Automotive, Inc. an international Fortune 500 automotive retailer, which owns and operates 159 automotive dealerships, 210 franchises, and 45 collision centers in the United States, the United Kingdom and Brazil,released its first quarter financials for 2017.
The Company's net income is worth $33.9 million, diluted earnings per common share of $1.58, adjusted net income (a non-GAAP measure) of $32.8 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $1.53.
First quarter 2017 adjusted net income and diluted earnings per share exclude a non-core benefit of approximately $1.1 million after-tax, or $0.05 per share, related to a settlement with an Original Equipment Manufacturer (OEM). Reconciliations of non-GAAP financial measures are included in the attached financial tables.
"Although we had another strong performance in our U.S. new vehicle margins, a record quarter in the U.K., and a profitable quarter in Brazil, these factors were not enough to offset extreme weakness in vehicle sales in our energy price impacted markets," said Earl J. Hesterberg, Group 1's president and chief executive officer.
"As for our overseas markets, our U.K. operations had another record quarter, with revenue growth across all business segments and gross profit up double digits on a constant currency basis. And finally, in the face of continued pressure on Brazil's new vehicle industry during the quarter, we are also delighted to have achieved profitability in our Brazil Region by growing gross profit 13 percent on a Same Store constant currency basis reflecting tremendous performance in used vehicles, parts and service, and F&I, and by significantly leveraging our costs," Hesterberg concluded.
Consolidated Results for First Quarter 2017 (year-over-year comparable basis)
In January 2017, the Company acquired a BMW motorcycle franchise in Brazil, which is expected to generate approximately $5 million in annual revenues. In March 2017, the Company opened Think Ford Reading, an add point in the U.K., which is contiguous to our existing Ford market. This expands the Company's U.K. Ford network to seven dealerships. In April 2017, the Company also opened Cedar Park Nissan, an add point in Austin, Texas. This addition increases Group 1's U.S. Nissan network to nine dealerships. These add points are expected to generate approximately $60 million in annual revenues.
In February 2017, the Company disposed of two Nissan dealerships in Brazil. These stores generated approximately $25 million in trailing-twelve-month revenues.
Share Repurchase Authorization
As of April 28, 2017, $22.4 million remains available under the Company's prior common stock share repurchase authorization. Purchases may be made from time to time in the open market or in privately negotiated transactions, based on market conditions, legal requirements and other corporate considerations and subject to Board approval and covenant restrictions.
First Quarter 2017 Earnings Conference Call Details
Group 1's senior management hosted a conference call April 28th discussing the first quarter financial results and the Company's outlook and strategy. A webcast replay will be available for 30 days by clicking here.
Source: Group 1 Automotive, Inc.
Edited by: G. Davila