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Group 1 Automotive Inc. mentioned Wednesday that first-quarter internet earnings almost doubled and income soared as dealerships the retailer acquired final 12 months outperformed expectations.
The Houston-based dealership group said revenue in the quarter ended March 31 rose 30 % to $3.84 billion, led by development from used automobiles, finance and insurance coverage and elements and repair. Group 1 has acquired dozens of franchised dealerships for the reason that finish of 2021’s first quarter, together with 28 shops from Prime Automotive Group late final 12 months. On a same-store foundation, Group 1’s first-quarter income rose 11 %.
The corporate’s internet earnings rose 99 % for the quarter to $202.9 million, a determine that features its operations in Brazil. Group 1 plans to divest the Brazilian operations by the top of June, and that unit is now reported as discontinued operations.
Internet earnings from persevering with operations, which incorporates Group 1’s U.S. and United Kingdom operations, rose 99 % to $201.1 million within the quarter, a document.
“Our document revenue efficiency this quarter was the results of continued robust shopper demand and excellent operational efficiency throughout all enterprise segments within the U.S. and U.Ok.,” Group 1 CEO Earl Hesterberg mentioned in an announcement. “Our 2021 acquisitions, particularly the Prime Auto Group, carried out far above our expectations within the first quarter and our U.Ok. operations achieved an all-time revenue document.”
Hesterberg added that he expects Group 1’s robust automobile margins to proceed this 12 months in each markets as new-vehicle provide stays constrained for the rest of 2022.
Group 1 had a nine-day provide of latest automobiles within the U.S. on the finish of March, which was unchanged from Dec. 31 however down from a 34-day provide as of March 31, 2021. Provide of used automobiles within the U.S. rose 12 months over 12 months to 28 days as of March 31, up from 23 days a 12 months earlier however down from 36 days on the finish of 2021.
Group 1 in March acquired Charles Maund Toyota in Austin, Texas, which it renamed Toyota of North Austin. The corporate mentioned that retailer ought to generate $435 million in annualized income. Group 1 this month acquired Larry H. Miller Toyota Albuquerque in New Mexico from Asbury Automotive Group Inc. and renamed the shop Sandia Toyota. The New Mexico dealership is predicted to generate $115 million in annualized income
“The acquisition of those two massive Toyota dealerships in rising markets the place we already function is a serious development alternative for our U.S. operations,” Daryl Kenningham, Group 1’s president of U.S. operations, mentioned within the firm’s assertion.
Group 1 in February sold Ira Honda in West Roxbury and Ira Toyota of Tewksbury, each in Massachusetts, to Terry Taylor’s Automotive Administration Companies Inc. The 2 shops had generated about $125 million in annualized income, Group 1 mentioned.
Q1 income: $3.84 billion, up 30 % from a 12 months earlier
Q1 internet earnings: $202.9 million, up 99 %
Q1 internet earnings from persevering with operations: $201.1 million, up 99 %
Q1 automobile gross sales: 29,498 new automobiles within the U.S., up 1.2 %; 33,940 used automobiles, up 12 %. On a same-store foundation, gross sales of latest automobiles within the U.S. fell 17 % to 23,769, whereas gross sales of used automobiles slipped 3.eight % to 28,901
Data: Quarterly income; internet earnings from persevering with operations
Rating: Group 1 ranked No. four on Automotive Information‘ most up-to-date checklist of the highest 150 dealership teams based mostly within the U.S., with retail gross sales of 146,072 new automobiles in 2021.
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