Group 1 Automotive Q2 2024 10-Q Filing

TL;DR

GPI Q2 2024 10-Q filed. Shows revenue from new/used car sales. Houston HQ.

AI Summary

Group 1 Automotive, Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance for the second quarter and first half of 2024, including revenues from new and used vehicle sales. The company is based in Houston, Texas, and operates within the auto dealership sector.

Why It Matters

This filing provides investors with a detailed look at Group 1 Automotive's financial health and operational performance in the second quarter of 2024, impacting investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial information.

Key Numbers

• 2024 Q2 — Reporting Period (Second quarter of 2024 financial performance)
• 2024-06-30 — Fiscal Period End (End date for the reported financial data)

Key Players & Entities

• Group 1 Automotive Inc (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 20240724 (date) — Date of filing
• Houston, TX (location) — Company headquarters

FAQ

Key Financial Figures

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

Filing Documents

• gpi-20240630.htm (10-Q) — 2605KB
• a2024q2exhibit41.htm (EX-4.1) — 92KB
• a2024q2exhibit42.htm (EX-4.2) — 90KB
• a2024q2exhibit104.htm (EX-10.4) — 55KB
• a2024q2exhibit105.htm (EX-10.5) — 64KB
• a2024q2exhibit106.htm (EX-10.6) — 24KB
• a2024q2exhibit311.htm (EX-31.1) — 9KB
• a2024q2exhibit312.htm (EX-31.2) — 9KB
• a2024q2exhibit321.htm (EX-32.1) — 5KB
• a2024q2exhibit322.htm (EX-32.2) — 5KB
• 0001031203-24-000058.txt ( ) — 8381KB
• gpi-20240630.xsd (EX-101.SCH) — 46KB
• gpi-20240630_cal.xml (EX-101.CAL) — 80KB
• gpi-20240630_def.xml (EX-101.DEF) — 208KB
• gpi-20240630_lab.xml (EX-101.LAB) — 586KB
• gpi-20240630_pre.xml (EX-101.PRE) — 401KB
• gpi-20240630_htm.xml (XML) — 967KB

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 19

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 44

Controls and Procedures

Item 4. Controls and Procedures 44

OTHER INFORMATION

PART II. OTHER INFORMATION 45

Legal Proceedings

Item 1. Legal Proceedings 45

Risk Factors

Item 1A. Risk Factors 45

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 46

Other Information

Item 5. Other Information 46

Exhibits

Item 6. Exhibits 47 SIGNATURE 48 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 DMS Dealer management system 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, as well as the impact of cyberattacks or other privacy/data security incidents, 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.

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) June 30, 2024 December 31, 2023 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 64.4 $ 57.2 Contracts-in-transit and vehicle receivables, net 349.9 369.2 Accounts and notes receivable, net 259.5 238.4 Inventories 2,356.8 1,963.4 Prepaid expenses 31.1 38.9 Other current assets 101.9 25.1 Current assets classified as held for sale 7.1 99.1 TOTAL CURRENT ASSETS 3,170.7 2,791.3 Property and equipment, net of accumulated depreciation of $ 623.2 and $ 587.7 , respectively 2,492.3 2,248.7 Operating lease assets 226.6 216.5 Goodwill 1,915.7 1,651.9 Intangible franchise rights 872.3 701.2 Other long-term assets 172.6 164.6 TOTAL ASSETS $ 8,850.3 $ 7,774.1 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Floorplan notes payable — credit facility and other, net of offset account of $ 79.4 and $ 236.7 , respectively $ 1,386.6 $ 1,153.0 Floorplan notes payable — manufacturer affiliates, net of offset account of $ 14.8 and $ 38.5 , respectively 713.3 412.4 Current maturities of long-term debt 170.6 109.4 Current operating lease liabilities 20.3 20.9 Accounts payable 490.6 499.3 Accrued expenses and other current liabilities 316.2 303.4 Current liabilities classified as held for sale — 7.2 TOTAL CURRENT LIABILITIES 3,097.7 2,505.7 Long-term debt 2,279.3 1,989.4 Long-term operating lease liabilities 214.3 209.4 Deferred income taxes 256.7 256.6 Other long-term liabilities 136.1 138.6 Commitments and Contingencies (Note 11) STOCKHOLDERS' EQUITY: Common stock, $ 0.01 par value, 50,000,000 shares authorized; 25,092,785 and 25,131,460 shares issued, respectively 0.3 0.3 Additional paid-in capital 359.7 349.1 Retained earnings 3,923.0 3,649.8 Accumulated other comprehensive income (loss) 27.0 28.1 Treasury stock, at cost; 11,687,438 and 11,447,422 shares, respectively ( 1,443.7 ) ( 1,3