GROUP 1 AUTOMOTIVE INC Files 10-Q for Q1 2024

TL;DR

<b>Group 1 Automotive, Inc. filed its Q1 2024 10-Q report on April 26, 2024, detailing operations for the quarter ending March 31, 2024.</b>

AI Summary

GROUP 1 AUTOMOTIVE INC (GPI) filed a Quarterly Report (10-Q) with the SEC on April 26, 2024. Group 1 Automotive, Inc. filed its Q1 2024 10-Q report on April 26, 2024. The filing covers the period from January 1, 2024, to March 31, 2024. The company's fiscal year ends on December 31st. Group 1 Automotive is classified under SIC code 5500 (Retail - Auto Dealers & Gasoline Stations). The company is incorporated in Delaware.

Why It Matters

For investors and stakeholders tracking GROUP 1 AUTOMOTIVE INC, this filing contains several important signals. This 10-Q filing provides investors with the latest financial performance and operational details for Group 1 Automotive, Inc. for the first quarter of 2024. Understanding the segment performance and financial health reported in this 10-Q is crucial for assessing the company's current market position and future prospects in the automotive retail sector.

Risk Assessment

Risk Level: low — GROUP 1 AUTOMOTIVE INC shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate, significant new risks or material adverse events beyond typical business operations.

Analyst Insight

Monitor Q1 2024 revenue and profit margins across different segments (new vehicles, used vehicles, parts & service) to gauge performance trends.

Key Numbers

• 2024-03-31 — Report Period End Date (CONFORMED PERIOD OF REPORT)
• 2024-04-26 — Filing Date (FILED AS OF DATE)
• 5500 — SIC Code (STANDARD INDUSTRIAL CLASSIFICATION)
• DE — State of Incorporation (STATE OF INCORPORATION)
• 1231 — Fiscal Year End (FISCAL YEAR END)

Key Players & Entities

• GROUP 1 AUTOMOTIVE INC (company) — FILER
• 0001031203-24-000033 (filing_id) — ACCESSION NUMBER
• 20240426 (date) — FILED AS OF DATE
• 20240331 (date) — CONFORMED PERIOD OF REPORT
• 800 GESSNER ROAD SUITE 500 (address) — BUSINESS ADDRESS
• HOUSTON (location) — CITY
• 77024 (zip_code) — ZIP
• 713-647-5700 (phone) — BUSINESS PHONE

FAQ

Key Dates

• 2024-03-31: Quarter End Date — End of the reporting period for the 10-Q.
• 2024-04-26: Filing Date — Date the 10-Q was officially submitted to the SEC.

Key Financial Figures

• $0.01 — ich registered Common stock, par value $0.01 per share GPI New York Stock Exchange

Filing Documents

• gpi-20240331.htm (10-Q) — 1643KB
• a2024q1exhibit103.htm (EX-10.3) — 1614KB
• a2024q1exhibit106.htm (EX-10.6) — 47KB
• a2024q1exhibit107.htm (EX-10.7) — 46KB
• a2024q1exhibit108.htm (EX-10.8) — 49KB
• a2024q1exhibit109.htm (EX-10.9) — 53KB
• a2024q1exhibit311.htm (EX-31.1) — 9KB
• a2024q1exhibit312.htm (EX-31.2) — 9KB
• a2024q1exhibit321.htm (EX-32.1) — 5KB
• a2024q1exhibit322.htm (EX-32.2) — 5KB
• 0001031203-24-000033.txt (&nbsp;) — 8688KB
• gpi-20240331.xsd (EX-101.SCH) — 46KB
• gpi-20240331_cal.xml (EX-101.CAL) — 81KB
• gpi-20240331_def.xml (EX-101.DEF) — 215KB
• gpi-20240331_lab.xml (EX-101.LAB) — 570KB
• gpi-20240331_pre.xml (EX-101.PRE) — 399KB
• gpi-20240331_htm.xml (XML) — 785KB

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS 2

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 3

Financial Statements

Item 1. Financial Statements 3

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 18

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 33

Controls and Procedures

Item 4. Controls and Procedures 33

OTHER INFORMATION

PART II. OTHER INFORMATION 34

Legal Proceedings

Item 1. Legal Proceedings 34

Risk Factors

Item 1A. Risk Factors 34

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 34

Other Information

Item 5. Other Information 34

Exhibits

Item 6. Exhibits 35 SIGNATURE 36 i Table of Contents GLOSSARY OF DEFINITIONS The following are abbreviations and definitions of terms used within this report: Terms Definitions AOCI Accumulated other comprehensive income (loss) COVID-19 pandemic Coronavirus disease first emerging in December 2019 and resulting in the global pandemic in 2020, 2021 and 2022 EPS Earnings per share F&I Finance, insurance and other FMCC Ford Motor Credit Company GBP British Pound Sterling () OEM Original equipment manufacturer PRU Per retail unit SEC Securities and Exchange Commission SG&A Selling, general and administrative SOFR Secured Overnight Financing Rate U.K. United Kingdom U.S. United States of America USD United States Dollar ($) U.S. GAAP Accounting principles generally accepted in the U.S. 1 Table of Contents

Forward-Looking Statements

Forward-Looking Statements Unless the context requires otherwise, references to "we," "us," "our" or the "Company" are intended to mean the business and operations of Group 1 Automotive, Inc. and its subsidiaries. This Quarterly Report on Form 10-Q (this "Form 10-Q") includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended ("Exchange Act"). These forward-looking statements include, but are not limited to, statements concerning the Company's strategy, future operating performance, future liquidity and availability of financing, capital allocation, the completion of future acquisitions and divestitures, business trends in the retail automotive industry and changes in regulations. When used in this Form 10-Q, the words "anticipate," "believe," "estimate," "expect," "intend," "may" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on the Company's expectations and beliefs as of the date of this Form 10-Q concerning future developments and their potential effect on the Company. While management believes that these forward-looking statements are reasonable when and as made, there can be no assurance that future developments affecting the Company will be those that are anticipated. The Company's forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, the risks set forth in Item 1A. Risk Factors of this Form 10-Q. For additional information regarding known material factors that could cause actual results to differ from projected results, refer to Part II, Item 1A. Risk Factors herein and Item 1A. Risk Factors in the Company's Annual Report on Form 10-K for the year ended Dece

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements GROUP 1 AUTOMOTIVE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions, except share data) March 31, 2024 December 31, 2023 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 41.9 $ 57.2 Contracts-in-transit and vehicle receivables, net 341.7 369.2 Accounts and notes receivable, net 259.7 238.4 Inventories 2,101.4 1,963.4 Prepaid expenses 21.2 38.9 Other current assets 15.7 25.1 Current assets classified as held for sale 53.2 99.1 TOTAL CURRENT ASSETS 2,834.8 2,791.3 Property and equipment, net of accumulated depreciation of $ 602.2 and $ 587.7 , respectively 2,493.2 2,248.7 Operating lease assets 217.9 216.5 Goodwill 1,842.0 1,651.9 Intangible franchise rights 946.2 701.2 Other long-term assets 175.9 164.6 TOTAL ASSETS $ 8,509.9 $ 7,774.1 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Floorplan notes payable — credit facility and other, net of offset account of $ 210.2 and $ 236.7 , respectively $ 1,044.1 $ 1,153.0 Floorplan notes payable — manufacturer affiliates, net of offset account of $ — and $ 38.5 , respectively 585.4 412.4 Current maturities of long-term debt 156.9 109.4 Current operating lease liabilities 20.0 20.9 Accounts payable 588.6 499.3 Accrued expenses and other current liabilities 326.9 303.4 Current liabilities classified as held for sale — 7.2 TOTAL CURRENT LIABILITIES 2,722.0 2,505.7 Long-term debt 2,416.1 1,989.4 Long-term operating lease liabilities 205.5 209.4 Deferred income taxes 259.8 256.6 Other long-term liabilities 134.3 138.6 Commitments and Contingencies (Note 11) STOCKHOLDERS' EQUITY: Common stock, $ 0.01 par value, 50,000,000 shares authorized; 25,109,781 and 25,131,460 shares issued, respectively 0.3 0.3 Additional paid-in capital 351.7 349.1 Retained earnings 3,791.3 3,649.8 Accumulated other comprehensive income (loss) 30.3 28.1 Treasury stock, at cost; 11,575,624 and 11,447,422 shares, respectively ( 1,401.1 ) ( 1,35