Group 1 Automotive recently conducted its third quarter 2020 earnings conference call.
It reported a total gross profit increase of 10.0%, to $512.0 million, according to PR Newswire.
Group 1’s 2020 third quarter posted a net income of $126.4 million, diluted earnings per common share of $6.83, adjusted net income (a non-GAAP measure) of $129.0 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $6.97.
Total revenue dropped by 2.5% with 4.3% decrease in new vehicle revenues and 0.3% decline in retail used vehicle revenues.
"Our record earnings are a function of our hard-working, resilient teammates and a responsive and creative management team that quickly reacted to the realities of the pandemic,” Group 1 Automotive President and Chief Executive Officer, Earl J. Hesterberg said. “As we rebuilt our U.S. and U.K. businesses from the extreme furlough levels in April, we targeted a 20% efficiency improvement in our sales and service processes, which drove our key cost metric, SG&A as a percent of gross profit, below 60% for the first time in our history. Lower U.S. vehicle sales were offset by improved F&I performance and higher margins supported by lower inventory levels. Additionally, our U.K. business turned in a record performance with year-over-year growth in service and vehicle sales."
A webcast playback of the conference call is available through the company’s website for 30 days after the call has been held. The investor presentation can also be accessed through group1corp.com.
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