Q4 2024 Group 1 Automotive Inc Earnings Call Transcript
Key Points
- Group 1 Automotive Inc (GPI) reported all-time quarterly record revenues of $5.5 billion, with significant contributions from new vehicle sales, parts and service revenues, and F&I.
- The company achieved record new vehicle units sold in the U.S., with volumes outpacing the industry and a sequential improvement in PRU.
- Parts and service revenues reached a record for the quarter, with same-store growth of nearly 9% and customer pay same-store growth up more than 8%.
- GPI increased its technician headcount by 7% on a same-store basis in the U.S., indicating a strong focus on expanding aftersales capacity.
- The company maintained a strong balance sheet with $1.2 billion in liquidity, supporting a flexible capital allocation approach, including acquisitions and share repurchases.
- The integration of Inchcape's retail dealerships in the UK has been challenging, with incremental SG&A costs impacting results.
- The UK market faces a challenging macroeconomic backdrop, with government-imposed zero emissions vehicle mandates proving difficult to achieve.
- UK same-store retail used vehicle units sold decreased by 2% year-over-year, indicating challenges in the used car market.
- UK SG&A as a percentage of gross profit worsened sequentially, highlighting ongoing cost management challenges.
- The company faced $33 million in impairment charges primarily attributable to franchise rights and tangible assets for four U.S. dealerships.
Good morning. Ladies and gentlemen, welcome to Group One Automotive's Fourth Quarter and full year 2024 financial results conference call. (Operator instructions)
I would now like to turn the call over to Mr. Pete DeLongchamps. Group One's senior Vice President, manufacturer relations and financial services. Please go ahead Mr DeLong.
Thank you, Betsy 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 that we were referred to on the call this morning. For comparison purposes have been posted to Group One'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 conference call. Statements made by management of Group One Automotive are forward-looking
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