Q2 2024 Group 1 Automotive Inc Earnings Call Transcript
Key Points
- Group 1 Automotive Inc (GPI) reported a record total revenue of $4.7 billion for the second quarter of 2024.
- The company achieved all-time records in new vehicle sales ($2.4 billion) and F&I revenues ($200 million).
- Despite the CDK outage, the US team demonstrated exceptional teamwork and resilience, minimizing the financial impact.
- Group 1 Automotive Inc (GPI) successfully integrated new acquisitions, including four Mercedes Benz dealerships and the pending Inchcape acquisition, expected to add $2.7 billion in revenue.
- The company maintained strong SG&A leverage, with US adjusted SG&A as a percentage of gross profit decreasing by 130 basis points sequentially to 64.4%.
- The CDK outage significantly impacted US operations from June 19 to June 26, resulting in an estimated pretax income impact of $17 million.
- One-time pretax compensation payments of $5.9 million were made to employees, affecting earnings per diluted share by $0.34.
- The UK operations faced challenges, with adjusted SG&A as a percentage of gross profit remaining high and used vehicle performance being weak.
- The company experienced severe weather events in Houston, further impacting operations and financial performance.
- Interest rate increases pose a risk, with an annual EPS impact of about $1.23 for every 100 basis points increase in the secured overnight funding rate.
Good morning, ladies and gentlemen. Welcome to Group 1 Automotive's second quarter of 2024 financial results conference call. Please be advised that this call is being recorded today. I would now like to turn the call over to Mr. Pete DeLongchamps, Group 1's Senior Vice President of Manufacturer Relations, Financial Services and Public Affairs. Please go ahead, Mr. DeLongchamps.
Thank you, Joe, and good morning, everyone, and welcome to today's call. The earnings release we issued this morning and a related slide presentation that include reconciliations related to the adjusted results we will refer to on this call for comparison purposes have been posted to Group 1's website.
Before we begin, I'd like to make some brief remarks about forward-looking statements and the use of non-GAAP financial measures, except for historical information mentioned during the call, statements made by management of Group 1 Automotive are
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