Group 1 Reports Third Quarter Results
13 November 1997
Group 1 Reports Third Quarter Results
HOUSTON, Nov. 13 -- Group 1 Automotive, Inc.
today reported pro forma revenues for the three months ended
September 30, 1997 increased 8% to $238,707,000 from $221,532,000 in the third
quarter of 1996. Pro forma net income for the third quarter of 1997 was
$3,609,000, up 8% from $3,353,000 in the same period last year. Pro forma
earnings per share increased 9% to $.25 from $.23 last year.
For the nine months ended September 30, 1997, pro forma revenues were
$689,050,000, up from $625,929,000 in the same period last year. Pro forma
net income for the nine months ended September 30, 1997 was $9,102,000, or
$.62 per share, compared to $8,374,000, or $.57 per share for the same period
last year.
"These results are in line with our expectations," said Group 1
Automotive, Inc. Chairman, President and Chief Executive Officer,
B.B. Hollingsworth, Jr.
Mr. Hollingsworth said, "Group 1 is experiencing solid core company
performance with very strong results from our Lexus and Toyota franchises. We
are excited about implementing our growth plan."
Group 1 completed its acquisition of 30 automotive dealership franchises
and its initial public offering on November 4, 1997. The Company's
dealerships are located in Texas and Oklahoma. Group 1 was founded to become
a leading operator and consolidator in the highly fragmented automotive
retailing industry which is estimated by analysts to generate in excess of
$600 billion in retail sales annually.
Group 1 Automotive, Inc.
Unaudited Pro Forma Combined Statements of Operations
(In thousands of dollars, except share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
1996 1997 1996 1997
REVENUES:
New vehicle sales $127,767 $140,098 $354,938 $391,928
Used vehicle sales 68,246 72,168 197,848 220,735
Parts & service sales 20,041 19,988 56,707 58,389
Other dealership
revenue, net 5,478 6,453 16,436 17,998
Total revenues 221,532 238,707 625,929 689,050
COST OF SALES 191,792 206,287 540,302 595,380
Gross Profit 29,740 32,420 85,627 93,670
GOODWILL AMORTIZATION 200 200 599 599
SELLING, GENERAL
& ADMINISTRATIVE
EXPENSES 23,441 26,072 68,947 76,938
Income from operations 6,099 6,148 16,081 16,133
OTHER INCOME (EXPENSE):
Interest expense, net (481) (54) (1,896) (681)
Other income
(expense), net 55 1 47 (17)
INCOME BEFORE
INCOME TAXES 5,673 6,095 14,232 15,435
PROVISION FOR
INCOME TAXES 2,320 2,486 5,858 6,333
NET INCOME $3,353 $3,609 $8,374 $9,102
Earnings per share $0.23 $0.25 $0.57 $0.62
Weighted average
shares outstanding 14,673,051 14,673,051 14,673,051 14,673,051
Other Data:
Gross margin 13.4% 13.6% 13.7% 13.6%
Operating margin 2.8% 2.6% 2.6% 2.3%
Pre-tax income margin 2.6% 2.6% 2.3% 2.2%
Retail new
vehicles sold 5,838 6,298 16,229 17,923
Retail used
vehicles sold 4,509 4,720 13,214 13,923
This press release contains certain forward-looking statements which
involve known and unknown risks, uncertainties or other factors not under the
Company's control which may cause the actual results, performance or
achievement of the Company to be materially different from the results,
performance or other expectations implied by these forward-looking statements.
These factors include, but are not limited to, those disclosed in the
Company's October 29, 1997 Prospectus filed with the Securities and Exchange
Commission.
SOURCE Group 1 Automotive, Inc.