HOUSTON -

In a period where the company achieved new and used sales gains that bested the industry average, Group 1 Automotive reported significant growth in its earnings and revenue to wrap up a successful year.

Specifically, adjusted net income during the fourth quarter came in at $14.7 million, up 43.4 percent year-over-year.

Meanwhile, net income on a GAAP basis — accounting for $4.1 million in net after-tax adjustments — reached $10.6 million, compared with a net loss of about $2 million in the prior-year period.

The after-tax adjustments for the most recent period included non-cash asset impairment charges of $4.9 million and an income tax benefit related to discrete items of $810,000.

Continuing on, fourth-quarter revenues hit $1.4 billion, a gain of 25 percent year-over-year.

The biggest contributor to the revenue spike was retail unit sales, which climbed 24.2 percent from the fourth quarter of 2009.

Used retail unit sales jumped 22.4 percent and wholesale used unit sales improved 34 percent. Meanwhile, new-vehicle unit sales were up 25.4 percent.

Group 1 pointed out that F&I revenue jumped 29.3 percent with the heftier retail unit sales total and increased penetration.

Moreover, parts and service also experienced some gains. Revenue in that segment was 9.1 percent ahead of the year-ago figure. 

Compared to the fourth quarter of 2009, new-vehicle retail revenue was up 26.3 percent, used-retail revenue jumped 28.8 percent and used-wholesale revenue improved 45.3 percent.

“We were very pleased with our strong sales performance to close 2010,” shared Group 1 president and chief executive officer Earl Hesterberg.

“Our sales increases in new and used vehicles were far above industry average, and our parts and service growth of more than 9 percent is the culmination of several years of focus and investment in this part of our business,” he continued.

Group 1 also shared some full-year results for 2010.

The company enjoyed a 49-percent lift in full-year adjusted net income, which totaled $62.2 million. Meanwhile, full-year net income (on a GAAP basis) reached $50.3 million.

The most recent period accounts for $11.9 million in net after-tax adjustments.

A year ago, full-year net income (on a GAAP basis) was $34.8 million.

Annual revenues for 2010 reached $5.5 billion, a 21.7-percent hike.

As far retail sales, there was a 22.1-percent lift on the used retail side and a 20.6-percent gain for wholesale used unit sales. There was a 32.3-percent increase in total used-vehicle revenue.

New-vehicle retail sales climbed 17.2 percent with new-vehicle revenue climbing 21.4 percent.

Continuing along, there was a 6.2-percent hike in parts and service revenue and an F&I revenue gain of 23.7 percent.

“In 2009, Group 1’s corporate priorities were cash preservation and cost reduction," said Hesterberg. "We executed a cost reduction plan that reduced our SG&A expense structure by nearly $120 million. Group 1’s goal in 2010 was to leverage that lean cost structure with a concentrated sales effort.

“The total revenue increase of almost 22 percent for the year indicates that we were highly successful. Most gratifying is that we demonstrated significant growth in all sales segments, highlighted by the 32 percent increase in used-vehicle revenues,” he continued. “Relative to new-vehicle sales, we far outpaced the national average performance for most brands we sell with Chevrolet up 31 percent, Nissan up 29 percent, Ford up 27 percent, as well as Toyota, where we were up 12 percent versus Toyota’s near-flat national sales results.”

Regarding some financial metrics, $149 million in funds were immediately available as of the quarter’s end. Available liquidity was $382.7 million.