NYSE$GPI

Group 1 Automotive Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Announced fourth quarter and full year 2020 financial results, demonstrating strong profits driven by cost control discipline and gross profit growth in new and used vehicles.

Group 1 Automotive reported a strong fourth quarter with net income per diluted share increasing by 111.2 percent to $5.43 compared to Q4 2019. Total revenue decreased by 3.9 percent to $3.0 billion, while total gross profit increased by 3.7 percent to $481.7 million. The company highlighted significant improvements in U.S. technician and salesperson productivity, as well as cost structure improvements in the U.K. business.

  • Net income per diluted share increased 111.2% to $5.43 compared to Q4 2019.
  • Adjusted net income per diluted share increased 88.0% to $5.66 compared to Q4 2019.
  • Total revenue decreased 3.9% to $3.0 billion.
  • Total gross profit increased 3.7% to $481.7 million.

Headline financials

Total Revenue

$2.99B

Previous: $3.11B-3.9%
EPS (adj)

$5.66

Previous: $3.01+88.0%
Gross profit per new vehicle

$105M

Previous: $84.3M+24.1%
Gross profit per used vehicle

$51.2M

Previous: $46.3M+10.6%
F&I gross profit per retail unit

$1.77K

Previous: $1.58K+12.3%
New retail vehicles sold

38.5K

Previous: 43.5K-11.5%
Capital Expenditures

$24.4M

Previous: $52.3M-53.3%
Free Cash Flow

$68.3M

Previous: $7.8M+775.6%
Net Income

$100M

Previous: $48.1M+108.1%
Operating Income

$150M

Previous: $96.5M+55.5%
Gross Profit

$482M

Previous: $465M+3.7%
Cash & Equivalents

$87.3M

Previous: $23.8M+266.8%
Total Assets

$5.09B

Previous: $5.57B-8.6%
Stock-Based Comp

$5.3M

Previous: $4.4M+20.5%

Revenue & EPS history

Group 1 Automotive · Revenue · Quarterly

$2.99B

Q4 2020-3.9%vs Q4 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Group 1 Automotive · $2.99B total across 5 segments · Q4 2020

  • New vehicle sales
    $1.6B-5.1%
  • Used vehicle sales
    $818M-2.5%
  • Parts and service
    $361M-4.7%
  • F&I and other
    $129M-0.3%
  • Wholesale used vehicles
    $86.2M+5.4%

Forward guidance

Group 1 anticipates market recovery in both the U.S. and U.K., positioning the company to more actively pursue growth via acquisitions and through its core aftersales and used vehicle businesses.

Tailwinds

  • Expect long-term benefits from cost improvements as the market recovers in 2021.
  • U.S. performance driven by continued cost discipline and a significant focus on margin retention.
  • Continued growth in AcceleRide® platform, with 3,500 vehicles sold through the platform in 4Q20, a 65-percent increase over 4Q19.
  • Restructured U.K. business to generate outstanding profits and establish an efficient cost structure.
  • Focus on cost in Brazil.

Headwinds

  • Stringent lockdown orders in the U.K. continued to impact service operations and dealership sales.
  • COVID-19 lockdowns closed showrooms in the U.K. for 41 of 92 days in Q4.
  • Weak market in Brazil due to the pandemic.
  • New vehicle revenues decreased 5.1 percent (-4.6 percent) on an 11.5 percent decrease in unit sales.
  • Retail used vehicle revenues decreased 2.5 percent (-2.5 percent) on 10.9 percent lower unit sales.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

+0.5%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+4.2%

Avg return

30 days after

53%

35 / 66 earnings

Positive

+15.3%

Q3 2014

Best reaction

-9.4%

Q1 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.5%-2.3%-9.7%
Q4 2025-8.9%-12.8%-17.8%
Q3 2025-6.4%-5.3%-4.1%
Q2 2025-1.8%-1.5%+1.5%
Q1 2025+2.0%+2.2%+6.8%
Q4 2024-2.0%-2.3%+0.2%
Q3 2024+2.6%+3.7%+19.9%
Q2 2024+2.3%+7.3%+13.3%
Q1 2024+7.5%+7.2%+10.2%
Q4 2023-4.7%-5.0%-3.6%
Q3 2023+7.1%+6.1%+21.8%
Q2 2023+1.7%+4.2%+4.1%
Q1 2023+1.6%+3.3%+2.5%
Q4 2022+7.0%+7.4%+14.5%
Q3 2022+6.4%+6.2%+17.0%
Q2 2022+4.1%+7.3%+9.7%
Q1 2022+6.9%+7.4%+9.9%
Q4 2021-3.2%+0.6%+6.6%
Q3 2021-0.2%+6.0%+10.8%
Q2 2021+5.3%+2.5%+0.7%
Q1 2021-2.9%+0.4%-5.7%
Q4 2020+4.0%+10.4%+10.4%
Q3 2020-2.7%+5.3%+11.4%
Q2 2020-5.7%-0.4%+3.0%
Q1 2020-7.4%+1.3%+36.3%
Q4 2019-8.1%-6.2%-19.7%
Q3 2019+8.6%+10.0%+8.5%
Q2 2019-1.4%-3.0%-17.5%
Q1 2019+6.4%+4.9%+2.4%
Q4 2018-0.6%-8.2%-1.8%
Q3 2018+4.4%+6.1%+4.5%
Q2 2018+6.0%+7.6%+20.7%
Q1 2018-1.1%-0.1%+5.5%
Q4 2017+5.9%+3.2%+2.3%
Q3 2017+11.3%+11.5%+11.4%
Q2 2017+0.5%-2.0%-8.3%
Q1 2017-9.4%-13.1%-17.6%
Q4 2016+1.0%-1.0%-1.4%
Q3 2016-5.4%-6.2%+10.8%
Q2 2016+5.6%+1.7%-1.8%
Q1 2016+8.4%
Q4 2015-7.5%
Q3 2015-1.8%
Q2 2015+3.3%
Q1 2015-5.5%
Q4 2014+3.3%
Q3 2014+15.3%
Q2 2014-5.5%
Q1 2014+6.2%
Q4 2013+1.0%
Q3 2013-6.2%
Q2 2013+5.6%
Q1 2013+6.9%
Q4 2012-9.1%
Q3 2012-3.0%
Q2 2012+5.1%
Q1 2011+0.4%
Q1 2012+1.2%
Q1 2010-6.7%
Q4 2009-6.7%
Q4 2011-6.7%
Q3 2011+4.6%
Q3 2010+4.6%
Q2 2010-3.8%
Q4 2010-3.8%
Q2 2011-3.8%

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