HOUSTON -
Group 1 Automotive’s double-digit revenue lift during the third quarter — including substantial gains on the used-vehicle side — helped push the auto retailer’s quarterly earnings to a considerable increase.
Specifically, Group 1 had adjusted net income of $19.3 million, up 14.6 percent from $16.8 million in the year-ago period. Net income for the recent period was $19 million, compared with $18.3 million in the third quarter of 2009.
Group 1 reported $1.5 billion in net revenues, a 17.2-percent upswing from the year-ago period.
In particular, used-vehicle revenue (including retail and wholesale), came in at $399.1 million, which marked a 34-percent year-over-year improvement. New-vehicle revenue was $822.1 million, up 12.9 percent from the prior-year period.
F&I revenue jumped 18.1 percent to $44.3 million, while there was a 7.1-percent gain in parts and service revenue, which came in at $196.3 million.
“We are pleased with our sales performance in the third quarter. Our vehicle sales increase outpaced the market with new vehicle sales facing a challenging comparison versus last year’s Cash for Clunkers program period,” noted Group 1 president and chief executive officer Earl Hesterberg.
“The dramatic revenue increases helped leverage the cost reductions and operating efficiencies Group 1 executed over the past two years,” he continued. “These results continue to demonstrate the leverage Group 1’s business model can deliver as sales volumes and revenues rebound.”
Moving along to look at the company’s balance sheet, Group 1’s new-vehicle inventory was at $537.6 million at the end of the quarter, a sequential gain of $52.8 million.
Immediately available funds at quarter’s end were $154.1 million. The company had $291.6 million in available liquidity.