Group 1 Automotive Inc 8-K, filed Jul 12, 2021
Group 1 Automotive Inc (GPI)
About this 8-K
Group 1 Automotive Inc filed this 8-K on July 12, 2021, reporting on events of July 8, 2021.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact name of Registrant as Specified in Its Charter)
|
|
|
|
|
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
|
|
|
|
|
|
|
77024 |
|
(Address of Principal Executive Offices) |
|
(Zip Code) |
Registrant’s Telephone Number, Including Area Code: (
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
|
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
|
Title of each class |
|
Trading Symbol(s) |
|
Name of each exchange on which registered |
|
|
|
|
|
|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company.
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On July 8, 2021, Group 1 Automotive, Inc., a Delaware corporation, issued a press release announcing its revised outlook for its expected earnings per diluted share for the second quarter ended June 30, 2021.
A copy of the press release is attached as Exhibit 99.1, the contents of which are incorporated in this Item 2.02 by reference.
As provided in General Instructions B.2. of Form 8-K, the information in this Item 2.02 (including the portion of the press release attached as Exhibit 99.1 incorporated by reference in this Item 2.02) shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d)Exhibits
Exhibit Index
|
Exhibit Number |
|
Description |
|
|
|
|
|
99.1 |
|
Press Release of Group 1 Automotive, Inc., dated as of July 8, 2021. |
|
|
|
|
|
104 |
|
Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
|
|
|
Group 1 Automotive, Inc. |
|
|
|
|
|
|
|
Date: July 12, 2021 |
|
By: |
/s/ Daniel J. McHenry |
|
|
|
|
Name: Daniel J. McHenry |
|
|
|
|
Title: Sr. Vice President & Chief Financial Officer |
Exhibit 99.1
FOR IMMEDIATE RELEASE
Group 1 Automotive Provides Second Quarter 2021 Preliminary Results and Operational Update
HOUSTON, July 8, 2021 - Group 1 Automotive, Inc. (NYSE: GPI), (“Group 1” or the “Company”), an international, Fortune 500 automotive retailer, today provided preliminary estimates of its earnings and unit sales for the three months ended June 30, 2021.
Group 1 CEO Earl Hesterberg stated, “The unprecedented supply disruption to new vehicle production largely stemming from the microprocessor shortage has made it very difficult for the financial markets to grasp the impact on our business. Therefore, we are providing some preliminary data on how we are navigating through these challenging times – and I think it is fair to say we are navigating the situation quite well.”
Group 1 expects earnings per share on a GAAP and non-GAAP basis for the second quarter of 2021 to range between $10.20 and $10.70 per share. This result was driven by strong vehicle margins in the U.S., a rebound in U.S. service business, recovery of the U.K. market, and ongoing strong cost control throughout the company.
Group 1 expects U.S. second quarter 2021 parts and service gross profit to have increased by approximately 10% versus the second quarter of 2019 on a same-store basis. Comparisons versus the second quarter of 2020 are distorted due to substantial COVID-related business disruptions in the second quarter of last year.
Group 1 President, U.S and Brazilian Operations, Daryl Kenningham added, “As evidenced by U.S. new vehicle industry sales volumes in recent months, the prolonged reduced level of vehicle production by our OEM suppliers has hampered industry sales volumes and our new-vehicle inventory levels by significant amounts compared with normal expectations. However, it should be noted that industry sales volume reflects a dramatic decrease in the fleet segment in the U.S., a market that Group 1 does not actively compete in. Additionally, OEMs are now producing only the fastest selling models, which improved our inventory turn and enabled us to sell more new units in the U.S. in the second quarter of 2021 than we did in the second quarter of 2019, which was the comparable period pre-COVID.”
As shown below, Group 1 is also providing estimated second quarter 2021 new and used retail unit volumes, along with comparisons on a same store basis versus the second quarters of 2020 and 2019. It should be noted that both the U.K. and Brazilian markets experienced some closures during the second quarter of 2020 and 2021, which distorts comparisons to the second quarter of 2019.
|
|
Estimated |
Est. Same Store |
|
|
Estimated |
Est. Same Store |
||
|
New Retail Unit Sales |
2Q21 |
vs 2Q20 |
vs 2Q19 |
|
Used Retail Unit Sales |
2Q21 |
vs 2Q20 |
vs 2Q19 |
|
U.S. Segment |
34,000 |
+55% |
+11% |
|
U.S. Segment |
34,000 |
+31% |
+12% |
|
U.K. Segment |
7,200 |
+90% |
-29% |
|
U.K. Segment |
10,500 |
+165% |
+21% |
|
Brazil Segment |
1,400 |
+98% |
-44% |
|
Brazil Segment |
500 |
+50% |
-43% |
|
Consolidated |
42,600 |
+61% |
-1% |
|
Consolidated |
45,000 |
+49% |
+12% |
U.S. new vehicle inventories ended the second quarter of 2021 at approximately 5,400 units, which equates to a 16-day supply. U.S. used vehicle inventories ended the second quarter of 2021 at approximately 12,800 units, which equates to a 29-day supply.
Regarding the inventory outlook, CEO Earl Hesterberg commented, “We believe that we are nearing our lowest point of new vehicle supply with approximately 8,500 new U.S. vehicle receipts in June 2021 and a similar number expected in July. We do not have visibility beyond that. A high percentage of our incoming units are pre-sold and we were able to retail approximately 10,000 units in June in the U.S. despite inventory levels never exceeding 7,000 units at any point during the month.”
The foregoing estimated results are based on preliminary information as of this date and are subject to change following completion of the quarter-end review process and other developments arising between now and the time financial results are finalized. In addition, these preliminary unaudited results are not comprehensive financial results for the quarter ending June 30, 2021, should not be viewed as a substitute for complete GAAP financial statements or more comprehensive financial information, and are not indicative of the results for any future period. The Company expects to release earnings for the quarter ended June 30, 2021 on July 29, 2021.
ABOUT GROUP 1 AUTOMOTIVE, INC.
Group 1 owns and operates 188 automotive dealerships, 242 franchises, and 48 collision centers in the United States, the United Kingdom and Brazil that offer 32 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service contracts; provides automotive maintenance and repair services; and sells vehicle parts.
Investors please visit group1corp.com, group1auto.com, group1collision.com, acceleride.com, facebook.com/group1auto, and twitter.com/group1auto, where Group 1 discloses additional information about the Company, its business, and its results of operations.
FORWARD-LOOKING STATEMENTS
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements related to future, not past, events and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. In this context, the forward-looking statements often include statements regarding our strategic investments, goals, plans, projections and guidance regarding our financial position, results of operations, business strategy, and often contain words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “thinks,” “seeks,” “should,” “foresee,” “may” or “will” and similar expressions. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Any such forward-looking statements are not assurances of future performance and involve risks and uncertainties that may cause
actual results to differ materially from those set forth in the statements. These risks and uncertainties include, among other things, (a) general economic and business conditions, (b) the level of manufacturer incentives, (c) the future regulatory environment, (d) our ability to obtain an inventory of desirable new and used vehicles, (e) our relationship with our automobile manufacturers and the willingness of manufacturers to approve future acquisitions, (f) our cost of financing and the availability of credit for consumers, (g) our ability to complete acquisitions and dispositions and the risks associated therewith, (h) foreign exchange controls and currency fluctuations, (i) our ability to retain key personnel, (j) the impacts of COVID-19 on our business, (k) the impacts of any potential global recession and (l) our ability to maintain sufficient liquidity to operate. For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with the SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.
SOURCE: Group 1 Automotive, Inc.
Investor contacts:
Sheila Roth
Manager, Investor Relations
Group 1 Automotive, Inc.
713-647-5741 | sroth@group1auto.com
Media contacts:
Pete DeLongchamps
Senior Vice President, Manufacturer Relations, Financial Services and Public Affairs
Group 1 Automotive, Inc.
713-647-5770 | pdelongchamps@group1auto.com
or
Clint Woods
Pierpont Communications, Inc.
713-627-2223 | cwoods@piercom.cm