GROUP 1 AUTOMOTIVE INC
For the period ended Mar 31, 2025. Filed Apr 25, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed Apr 25, 2025
GPI$261.35-1.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-01.
0001031203-24-000073
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-04-25.
0001031203-25-000029
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 150 previous paragraphs and 119 current paragraphs.
52 unchanged; 41 reworded; 25 added; 46 removed; 11 previous and 1 current paragraphs rearranged.
Tables are not compared: 17 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (25)
Current report
On March 26, 2025, President Donald Trump signed a proclamation invoking Section 232 of the Trade Expansion Act of 1962 to impose a 25 percent tariff on imported automobiles and certain automobile parts. The 25 percent tariff on automobiles took effect on April 3, 2025, with the 25 percent tariff on automobile parts to begin no later than May 3, 2025. The 25 percent tariff will be applied to imported passenger vehicles (sedans, SUVs, crossovers, minivans, cargo vans) and light trucks, as well as key automobile parts (engines, transmissions, powertrain parts and electrical components), with processes to expand tariffs on additional parts if necessary. Importers of automobiles under the United States-Mexico-Canada Agreement (“USMCA”) will be given the opportunity to certify the value of the automobile attributable to parts wholly obtained, produced entirely, or substantially transformed in the United States (“U.S. content”) and systems will be implemented such that the 25 percent tariff will only apply to the value of their non-U.S. content. USMCA-compliant automobile parts will remain tariff-free until the Secretary of Commerce, in consultation with U.S. Customs and Border Protection, establishes a process to apply tariffs to their non-U.S. content.
Current report
On April 2, 2025, President Donald Trump signed an executive order on reciprocal tariffs, effective April 9, 2025, which declared a 10 percent baseline tax on imports from all countries, as well as higher rates for nations that run trade surpluses with the U.S. On April 9, 2025, an executive order was signed granting a 90-day pause on most of the elevated reciprocal tariff rates but maintained the imposed 10 percent tariff. The order also increased the imposed tariff rate on China to 125 percent. On April 15, 2025, an additional executive order went into effect increasing the tariffs on China to up to 245 percent, including a 125 percent reciprocal tariff. Additionally, on the same day, President Donald Trump signed proclamations to close existing loopholes and exemptions to restore a true 25 percent tariff on steel and elevate the tariff to 25 percent on aluminum.
Current report
While the possibility exists for delays, reductions, or exemptions of the automotive and reciprocal tariffs, the potential impacts of the tariffs described above, as well as the reaction of the OEMs to such tariffs, remain uncertain and could significantly increase the price of our products as well as the future mix and demand for vehicles provided by our manufacturers. Additionally, reciprocal tariffs, tariffs on steel and aluminum and the elevated tariffs against China and other countries could negatively impact the global economy, demand for our products and our manufacturers’ global supply chains. Our manufacturers’ supply chain dependencies and production facility locations vary by OEM, and as a result, certain manufacturers, vehicle models, vehicle model variations and parts could be affected more significantly by the imposition of tariffs than others. We will continue to monitor the impact of the Trump Administration’s policies and the response of U.S. trading partners on our results of operations in future periods.
Current report
NM — Not Meaningful
Current report
NM — Not Meaningful
Current report
Revenues
Current report
Total revenues in the U.S. during the three months ended March 31, 2025 (“Current Quarter”) increased $276.1 million, or 7.6%, as compared to the three months ended March 31, 2024 (“Prior Year Quarter”), driven by higher same store revenues and the acquisition of stores.
Current report
New vehicle retail same store revenues outperformed the Prior Year Quarter, driven by more units sold, coupled with higher pricing. This outperformance reflects the resiliency of demand. We ended the Current Quarter with a U.S. new vehicle inventory supply of 38 days, five days lower than the Prior Year Quarter.
Current report
Used vehicle retail same store revenues outperformed the Prior Year Quarter, driven by higher pricing, coupled with slightly more units sold. This outperformance is a testament to our used vehicle management processes and use of technology for used vehicle pricing. Used vehicle wholesale same store revenues outperformed the Prior Year Quarter, driven by more units sold, coupled with higher pricing.
Current report
Gross Profit
Current report
Total gross profit in the U.S. during the Current Quarter increased $35.9 million, or 5.6%, as compared to the Prior Year Quarter, driven by higher same store gross profit and the acqu isition of stores.
Current report
SG&A Expenses
Current report
Total SG&A expenses in the U.S. during the Current Quarter increased $52.6 million, or 13.3%, as compared to the Prior Year Quarter, primarily driven by higher same store SG&A expenses and the acquisition of stores. Total same store SG&A expenses in the U.S. during the Current Quarter, increased $22.4 million, or 5.4%, as compared to the Prior Year Quarter, primarily driven by increased employee related costs, third-party services and higher facility related expenses.
Current report
Revenues
Current report
Total same store revenues in the U.K. during the Current Quarter increased $39.9 million, or 4.9%, as compared to the Prior Year Quarter, primarily driven byoutperformances across all lines of business. On a constant currency basis, same store revenues increased 5.2%, driven by the same outperformances.
Current report
Gross Profit
Current report
Total gross profit in the U.K. during the Current Quarter increased $113.5 million, or 109.6%, as compared to the Prior Year Quarter, primarily driven by the acquisition of stores and higher same store gross profit.
Current report
Total same store gross margin in the U.K. increased 45 basis points, primarily driven by improvements in parts and service and used vehicle wholesale gross margins. This increase was partially offset by underperformances in new and used vehicle retail gross margins, as described above for same store gross profit.
Current report
SG&A Expenses
Current report
SG&A as a percentage of gross profit decreased by 24 and 103 basis points on an as reported and same store basis, respectively, compared to the Prior Year Quarter.
Current report
Asset Impairments
Current report
Asset impairments totaled $0.4 million in the Current Quarter. During the Current Quarter, we recognized an impairment charge of $2.7 million associated with the anticipated termination of certain franchises in the U.K in the second quarter of 2025. The impairment charge was offset by a $2.3 million gain recognized as a result of the increase in value during the Current Quarter of previously impaired assets held for sale.
Current report
Restructuring Charges
Current report
During the Current Quarter, we incurred $11.1 million of restructuring charges. Restructuring charges primarily consist of planned workforce realignment, strategic closing of certain facilities and systems integrations, among other efforts to increase operational efficiency and profitability in connection with the integration of the Inchcape Retail acquisition with our U.K. business.
Current report
Refer to Note 4. Restructuring within our Notes to Condensed Consolidated Financial Statements for further discussion of our restructuring plan.
Removed paragraphs (46)
Previous report
On October 25, 2024, the U.K. Court of Appeal ruled in favor of claimants in a case involving undisclosed commissions paid by lenders to car dealerships. The court found that brokers must disclose commission details to customers, and failure to do so indicated that customers did not give informed consent to these transactions. This ruling could require lenders and dealerships to repay these commissions. In response to the court ruling and regulatory actions in the U.K., certain lenders have already implemented and others are likely to implement new or different commission models and require additional disclosures to customers. The final outcome of the court ruling, including an expected appeal, is uncertain but could materially impact our U.K. operations if we are required to refund past commissions or change our current commission models. Refer to Item 1A. Risk Factors –“We are subject to automotive and other laws and regulations, which, if we are found to have violated, may adversely affect our business and results of operations” for additional information.
Previous report
On August 1, 2024, we completed the acquisition of Inchcape Retail automotive operations in the U.K. The Inchcape Acquisition, comprisedof 54 dealership locations, certain real estate and three collision centers, substantially increased our portfolio across the U.K. Refer to Note 3. Acquisitions and Dispositions within our Notes to Condensed Consolidated Financial Statements for additional discussion of our acquisition of Inchcape Retail.
Previous report
On June 19, 2024, we were informed of a cybersecurity incident experienced by CDK Global LLC (“CDK”), which resulted in service outages on CDK’s dealers’ systems (the “CDK Incident”). CDK provides clients in the automotive industry, including Group 1 dealerships in the U.S., with a software as a service platform (“SaaS platform”) used by dealerships in managing customer relationships, sales, financing, service, inventory and back-office operations. The CDK Incident temporarily disrupted our business applications and processes in our U.S. operations that rely on CDK’s dealers’ systems. Despite the CDK Incident, all Group 1 U.S. dealerships continued to conduct business using alternative processes until CDK’s dealers’ systems were available. On June 26, 2024, CDK restored service to us for the core DMS, at which time, subject to certain modified procedures, we resumed processing transactions through the CDK DMS. We do not expect the CDK Incident to have a material impact on our overall financial condition or on our ongoing results of operations.
Previous report
On March 20, 2024, the Environmental Protection Agency (“EPA”) finalized new emissions standards for light and medium-duty vehicles, including passenger cars, vans, pickups, sedans and sport utility vehicles for model years 2027 through 2032 and beyond. The final rule sets new, strict standards intended to reduce air pollutant emissions, including greenhouse gas emissions; however, the new standards are now subject to legal challenge. The EPA projects the final rule will accelerate the transition to, and availability of, clean vehicle technologies, including hybrid electric vehicles and plug-in hybrid electric vehicles. Although the future impact of these regulations on our operations cannot be predicted with certainty, the regulations may have a significant impact on the future mix and demand for vehicles provided by our manufacturers. We will continue to monitor the impact of the final regulations on our manufacturers and dealership operations.
Previous report
The global economy experienced elevated levels of inflation beginning in 2022. In response to higher than historical average inflationary pressures and challenging macroeconomic conditions, the U.S. Federal Reserve (the “Federal Reserve”), along with other central banks, including in the U.K., maintained interest rates at elevated levels throughout 2023. In 2024, inflation began to return to historical norms. As a result, during the three months ended September 30, 2024 (“Current Quarter”), the Federal Reserve and the Bank of England lowered their interest rates by 50 and 25 basis points, respectively, in an effort to stimulate economic activity and reduce unemployment.
Previous report
Although the Federal Reserve and Bank of England decreased interest rates and inflationary pressures moderated during 2024, existing elevated prices as a result of previous rates of inflation above historical levels continue to reduce the disposable income of our customers. In addition, volatility in new vehicle availability and higher interest rates over historical average rates have increased the monthly cost of financing vehicles as compared to prior periods. These factors have contributed to a continued decline in used vehicle prices during the Current Quarter as compared to the three months ended September 30, 2023 (“Prior Year Quarter”).
Previous report
Reported Operating Data — Consolidated
Previous report
Same Store Operating Data — Consolidated
Previous report
Total same store revenues in the U.S. during the Current Quarter decreased $70.6 million, or 1.9%, as compared to the Prior Year Quarter. This decrease was driven by lower revenues from used vehicle retail, new vehicle retail and F&I, partially offset by higher parts and service revenues.
Previous report
New vehicle retail same store revenues slightly underperformed the Prior Year Quarter, driven by lower pricing, partially offset by more units sold. Manufacturer vehicle deliveries increased in the Current Quarter and as a result, our inventory levels were higher than the Prior Year Quarter, providing for the increase in units sold. Higher new vehicle supply compared to the Prior Year Quarter created downward pressure on pricing and margins. We ended the Current Quarter with a U.S. new vehicle inventory supply of 56 days, 26 days higher than the Prior Year Quarter.
Previous report
Used vehicle retail same store revenues underperformed the Prior Year Quarter, primarily driven by fewer units sold, coupled with lower used vehicle retail pricing. Used vehicle supply improved as a result of higher new vehicle supply. However, lingering impacts from above-historical average inflation over the past two years reducing the disposable income of our customers and higher interest rates compared to historical averages increasing the monthly cost of financing vehicles, continued to create downward pressure on pricing and demand.
Previous report
Total gross profit in the U.S. during the Current Quarter decreased $4.6 million, or 0.7%, as compared to the Prior Year Quarter, driven by lower same store gross profit, partially offset by the acquisition of stores.
Previous report
New vehicle retail same store gross profit underperformed the Prior Year Quarter, driven by a decrease in same store gross profit per unit sold, partially offset by a slight increase in same store units sold. The decrease in same store gross profit per unit is due to higher deliveries from our OEMs and increasing inventory levels of new vehicles as described above.
Previous report
Total SG&A expenses in the U.S. during the Current Quarter increased $28.0 million, or 6.7%, as compared to the Prior Year Quarter, primarily driven by the acquisition of stores and higher same store SG&A expenses. Total same store SG&A expenses in the U.S. during the Current Quarter, increased $8.1 million, or 2.0%, as compared to the Prior Year Quarter, primarily driven byfees associated with the Inchcape Acquisition, coupled with increased outside services, professional fees and advertising expenses, partially offset by lower employee related costs.
Previous report
Reported Operating Data — U.S.
Previous report
U.S. Region — Nine Months Ended September 30, 2024 Compared to 2023
Previous report
Total revenues in the U.S. during the nine months ended September 30, 2024 (“Current Year”) increased $496.4 million, or 4.5%, as compared to the same period in 2023 (“Prior Year”), driven by the acquisition of stores.
Previous report
New vehicle retail same store revenues slightly outperformed the Prior Year, driven by more units sold, partially offset by lower pricing. Manufacturer vehicle deliveries were increased in the Current Year and as a result, our inventory levels were higher than the Prior Year, providing for the increase in units sold. Higher new vehicle supply compared to the Prior Year created downward pressure on pricing and margins. We ended the Current Year with a U.S. new vehicle inventory supply of 56 days, 26 days higher than the Prior Year.
Previous report
Used vehicle retail same store revenues underperformed the Prior Year, driven by lower pricing, partially offset by more units sold. Used vehicle supply improved as a result of higher new vehicle supply. However, lingering impacts from above-historical average inflation over the past two years reducing the disposable income of our customers and higher interest rates compared to historical averages increasing the monthly cost of financing vehicles, continued to create downward pressure on pricing and demand.
Previous report
Parts and service same store revenues outperformed the Prior Year, driven by increases in warranty and customer pay revenues, partially offset by decreases in collision and wholesale revenues. This outperformance reflects increased business activity and increased same store technician headcount through our technician recruiting and retention efforts, providing greater capacity to meet increased demand.
Previous report
Total gross profit in the U.S. during the Current Year increased $15.0 million, or 0.8%, as compared to the Prior Year, primarily driven by the acquisition of stores, partially offset by lower same store gross profit.
Previous report
Newvehicle retail same store gross profit underperformed the Prior Year, driven by a decrease in new vehicle retail same store gross profit per unit sold, partially offset by an increase in units sold. The decrease in new vehicle retail same store gross profit per unit sold is due to higher deliveries from our OEMs, leading to increasing inventory levels of new vehicles as described above.
Previous report
Used vehicle retail same store gross profit slightly outperformed the Prior Year, primarily driven by higher same store used vehicle retail units sold, partially offset by lower same store gross profit per unit sold.
Previous report
SG&A as a percentage of gross profit increased 196 basis points and increased 442 basis points on an as reported and same store basis, respectively, compared to the Prior Year.
Previous report
Total SG&A expenses in the U.S. during the Current Year increased $48.1 million, or 4.0%, as compared to the Prior Year, primarily driven by higher same store SG&A expenses. Total same store SG&A expenses in the U.S. during the Current Year increased $44.9 million, or 3.8%, as compared to the Prior Year, primarily driven byfees associated with the Inchcape Acquisition, coupled with increased outside services, professional fees, employee related costs, advertising expenses, loaner car and related expenses, information technology equipment and related services, insurance expenses and legal fees. SG&A expenses also included $5.9 million in pre-tax one-time compensation payments to retain our field employees during the CDK Incident.
Previous report
Total same store revenues in the U.K. during the Current Quarter slightly decreased $13.4 million, or 1.7%, as compared to the Prior Year Quarter, primarily driven by anunderperformance in used vehicle sales, partially offset by outperformances in new vehicle sales, parts and service and the benefit of positive foreign currency exchange rate movement. On a constant currency basis, revenues decreased 4.6%, primarily driven by underperformances across all revenue streams except parts and service.
Previous report
New vehicle retail same store revenues, on a constant currency basis, were relatively consistent with the Prior Year Quarter. We ended the Current Quarter with a U.K. new vehicle inventory supply of 23 days, one day higher than the Prior Year Quarter.
Previous report
Used vehicle retail same store revenues, on a constant currency basis, underperformed the Prior Year Quarter, primarily driven by lower used vehicle retail pricing on a constant currency basis and fewer units sold.
Previous report
Used vehicle wholesale same store revenues, on a constant currency basis, underperformed the Prior Year Quarter, primarily driven by a decrease in units sold.
Previous report
F&I same store revenues, on a constant currency basis, underperformed the Prior Year Quarter, primarily driven by a decrease in the number of contracts sold.
Previous report
Total gross profit in the U.K. during the Current Quarter increased $71.0 million, or 68.6%, as compared to the Prior Year Quarter.
Previous report
Total same store gross profit in the U.K. during the Current Quarter decreased $0.2 million, or 0.2%, as compared to the Prior Year Quarter. On a constant currency basis, total same store gross profit decreased 3.2%, driven by downward pressure on same store new vehicle and used vehicle gross profit, partially offset by higher same store parts and service gross profit.
Previous report
New vehicle retail same store gross profit, on a constant currency basis, underperformed the Prior Year, primarily due to a decrease in new vehicle retail gross profit per unit sold, partially offset by an increase units sold, as a result of the increase in new vehicle production since the Prior Year Quarter, generating downward pressure on new vehicle margins.
Previous report
Used vehicle retail same store gross profit, on a constant currency basis, underperformed the Prior Year Quarter, driven by a decrease in used vehicle retail same store gross profit per unit sold and fewer units sold.
Previous report
Total same store gross margin in the U.K. increased 20 basis points, primarily driven by a slight improvement in used vehicle wholesale margins.
Previous report
SG&A as a percentage of gross profit increased by 714 and 839 basis points on an as reported and same store basis, respectively, compared to the Prior Year Quarter.
Previous report
Reported Operating Data — U.K.
Previous report
U.K. Region — Nine Months Ended September 30, 2024 Compared to 2023
Previous report
Total revenues in the U.K. during the Current Year increased $498.2 million, or 21.2%, as compared to the Prior Year, primarily driven by the acquisition of stores and changes in foreign currency exchange rates.
Previous report
Total same store revenues in the U.K. during the Current Year increased $39.9 million, or 1.7%, as compared to the Prior Year, primarily driven byoutperformances in new vehicle retail sales and parts and service and the benefit of positive foreign currency exchange rate movement, partially offset by lower used vehicle sales and F&I. On a constant currency basis, same store revenues decreased 1.0%, primarily driven by underperformances inused vehicle sales and F&I, offset by highernew vehicle retail sales and parts and service.
Showing the first 40 of 46 passages. Open the source sections for the rest.
Reworded paragraphs (41)
Previous wording
We are a leading operator in the automotive retail industry. Through our omni-channel platform, we sell new and used cars and light trucks, arrange related vehicle financing, sell service and insurance contracts, provide automotive maintenance and repair services and sell vehicle parts. We operate in geographically diverse markets that extend across 17 states in the U.S. and 73 towns and cities in the U.K. As of September 30, 2024, our retail network consisted of 146 dealerships in the U.S. and 113 dealerships in the U.K.
Current wording
We are a leading operator in the automotive retail industry. We sell or lease new and used cars and light trucks; arrange related vehicle financing; sell service and insurance contracts; provide automotive maintenance and repair services; and sell vehicle parts retail and wholesale. We have operations in geographically diverse markets that extend across 17 states in the U.S. and 72 towns and cities in the U.K. As of March 31, 2025, our retail network consisted of 144 dealerships in the U.S. and 116 dealerships in the U.K.
Previous wording
Retail new vehicle units sold include new vehicle agency units sold under agency arrangements with certain manufacturers in the U.K. The agency units and related revenues are excluded from the calculation of the average sales price per unit sold for new vehicles due to their net presentation within revenues as only the sales commission is reported in revenues for dealerships operating under an agency arrangement. The agency units and related net revenues are included in the calculation of gross profit per unit sold.
Current wording
Retail new and used vehicle units sold include new and used vehicle agency units sold under agency arrangements with certain manufacturers in the U.K. The agency units and related revenues are excluded from the calculation of the average sales price per unit sold for new and used vehicles due to their net presentation within revenues as only the sales commission is reported in revenues for dealerships operating under an agency arrangement. The agency units and related net revenues are included in the calculation of gross profit per unit sold.
Previous wording
Total same store revenues in the U.S. during the Current Year increased $8.2 million, or 0.1%, as compared to the Prior Year. This increase was driven by higher revenues from new vehicle retail, parts and service and F&I, largely offset by lower used vehicle revenues.
Current wording
Total same store revenues in the U.S. during the Current Quarter increased $211.6 million, or 6.0%, as compared to the Prior Year Quarter. This increase was driven by higher revenues across all business lines.
Previous wording
Parts and service same store revenues outperformed the Prior Year Quarter, driven by increases in warranty and customer pay revenues, partially offset by decreases in collision and wholesale revenues. This outperformance reflects increased business activity and increased same store technician headcount through our technician recruiting and retention efforts, providing greater capacity to meet increased demand.
Current wording
Parts and service same store revenues outperformed the Prior Year Quarter, driven by increases in customer pay and warranty revenues, partially offset by decreases in wholesale and collision revenues. We are strategically reducing our collision footprint and repurposing a portion of that space to traditional service capacity, which we expect to increase returns from the higher margin service business. Same store technician headcount increased through our continued technician recruiting and retention efforts, providing greater capacity to meet increased demand.
Previous wording
F&I same store revenues outperformed the Prior Year, primarily driven by higher same store new and used vehicle units sold, coupled with higher same store F&I gross profit per unit sold. Penetration rates for vehicle service contracts, new vehicle finance and other F&I products improved, contributing to the higher same store F&I gross profit per unit sold. OEM incentives have increased in the Current Year, leading to the improved new vehicle F&I penetration.
Current wording
F&I same store revenues outperformed the Prior Year Quarter, primarily driven by higher same store new and used vehicle units sold, coupled with higher same store F&I gross profit per unit sold. Penetration rates for vehicle service contracts, used vehicle finance and other F&I products improved, contributing to the higher same store F&I gross profit per unit sold.
Previous wording
Total same store gross profit in the U.S. during the Current Year decreased $58.4 million, or 3.1%, as compared to the Prior Year, primarily driven by downward pressure on new vehicle margins, partially offset by increases from parts and service and F&I.
Current wording
Total same store gross profit in the U.S. during the Current Quarter increased $20.7 million, or 3.3%, as compared to the Prior Year Quarter, driven by increases from parts and service and F&I, partially offset by downward pressure on new vehicle and use vehicle retail margins.
Previous wording
Used vehicle retail same store gross profit underperformed the Prior Year Quarter, primarily driven by a decrease in same store gross profit per unit sold, coupled with fewer same store units sold, as described above for used vehicle retail same store revenues. Our used vehicle wholesale same store gross profit outperformed the Prior Year Quarter, driven by an increase in same store gross profit per unit sold, coupled with an increase in same store units sold.
Current wording
Used vehicle retail same store gross profit underperformed the Prior Year Quarter, prima rily driven by lower same store gross profit per unit sold, partially offset by higher same store used vehicle retail units sold as described above for used vehicle retail same store revenues. Used vehicle wholesale same store gross profit outperformed the Prior Year Quarter, driven by an increase in same store gross profit per unit sold, coupled with an increase in same store units sold.
Previous wording
F&I same store gross profit outperformed the Prior Year, as described above for F&I same store revenues.
Current wording
F&I same store gross profit outperformed the Prior Year Quarter, as described above for F&I same store revenues.
Previous wording
Total same store gross margin in the U.S. decreased 57 basis points, primarily driven by an underperformance in new vehicle retail, for the reasons described above for same store gross profit per unit sold for new vehicle retail. This underperformance was partially offset by improvement in parts and service and used vehicle gross margins.
Current wording
Total same store gross margin in the U.S. decreased 44 basis points, primarily driven by an underperformance in new vehicle retail and used vehicle retail gross margins for the reasons described above for same store gross profit per unit sold for new and used vehicle retail. This underperformance was partially offset by a small improvement in parts and service gross margins.
Previous wording
SG&A as a percentage of gross profit increased 455 basis points and increased 387 basis points on an as reported and same store basis, respectively, compared to the Prior Year Quarter.
Current wording
SG&A as a percentage of gross profit increased 451 basis points and increased 136 basis points on an as reported and same store basis, respectively, compared to the Prior Year Quarter.
Previous wording
Retail new vehicle units sold include new vehicle agency units. The agency units and related revenues are excluded from the calculation of the average sales price per unit sold for new vehicles as only the sales commission is reported within revenues. The agency units and related net revenues are included in the calculation of gross profit per unit sold. The GBP to USD foreign currency exchange rate has fluctuated from £1 to $1.221 at September 30, 2023, to £1 to $1.339 at September 30, 2024, or an increase in the value of the GBP of 9.7%.
Current wording
Retail new and used vehicle units sold include new and used vehicle agency units. The agency units and related revenues are excluded from the calculation of the average sales price per unit sold for new vehicles as only the sales commission is reported within revenues. The agency units and related net revenues are included in the calculation of gross profit per unit sold. The GBP to USD foreign currency exchange rate has fluctuated from £1 to$1.263 at March 31, 2024, to £1 to$1.294 at March 31, 2025, or an increase in the value of the GBP of 2.4%.
Previous wording
Total revenues in the U.K. during the Current Quarter increased $444.8 million, or 55.2%, as compared to the Prior Year Quarter, primarily driven by the acquisition of stores and changes in foreign currency exchange rates.
Current wording
Total revenues in the U.K. during the Current Quarter increased $758.7 million, or 92.0%, as compared to the Prior Year Quarter, primarily driven by the acquisition of stores, higher same store revenues, and changes in foreign currency exchange rates.
Previous wording
New vehicle retail same store revenues, on a constant currency basis, outperformed the Prior Year, driven by more units sold, coupled with slightly higher pricing. We ended the Current Year with a U.K. new vehicle inventory supply of 23 days, one day higher than the Prior Year.
Current wording
New vehicle retail same store revenues, on a constant currency basis, outperformed the Prior Year Quarter, driven by more units sold, coupled with slightly higher pricing. We ended the Current Quarter with a U.K. new vehicle inventory supply of 16 days, four days lower than the Prior Year Quarter.
Previous wording
Total revenues in the U.S. during the Current Quarter increased $71.5 million, or 1.8%, as compared to the Prior Year Quarter, driven by the acquisition of stores, partially offset by slightly lower same store revenues.
Current wording
Used vehicle retail same store revenues, on a constant currency basis, outperformed the Prior Year Quarter, driven by more units sold, partially offset by slightly lower pricing.
Previous wording
Used vehicle wholesale same store revenues, on a constant currency basis, underperformed the Prior Year, primarily driven by a decrease in wholesale used vehicle units sold.
Current wording
Used vehicle wholesale same store revenues, on a constant currency basis, outperformed the Prior Year Quarter, primarily driven by an increase in wholesale used vehicle units sold.
Previous wording
Parts and service same store revenues, on a constant currency basis, outperformed the Prior Year Quarter, driven by increases in customer pay, warranty and wholesale revenues, reflecting increased business activity. We have invested in improvements to our U.K. customer contact center, streamlining operations to make scheduling appointments easier for customers, resulting in an increase in parts and service activity driving an increase in revenues as compared to the Prior Year Quarter.
Current wording
Parts and service same store revenues, on a constant currency basis, outperformed the Prior Year Quarter, driven by increases in customer pay and collision revenues, partially offset by decreases in warranty and wholesale revenues. We have invested in improvements to our U.K. customer contact center, streamlining operations to make scheduling appointments easier for customers, resulting in an increase in parts and service activity driving an increase in revenues as compared to the Prior Year Quarter.
Previous wording
F&I, net same store revenues, on a constant currency basis, underperformed the Prior Year, primarily driven by decreases in income per contract for retail finance fees and service contracts.
Current wording
F&I, net same store revenues, on a constant currency basis, outperformed the Prior Year Quarter, driven by increases in income per contract for retail finance fees and service contracts.
Previous wording
Total same store gross profit in the U.S. during the Current Quarter decreased $26.7 million, or 4.0%, as compared to the Prior Year Quarter, primarily driven by lower gross profit from new vehicle retail, used vehicle retail and F&I, partially offset by higher parts and service.
Current wording
Total same store gross profit in the U.K. during the Current Quarter increased $8.9 million, or 8.7%, as compared to the Prior Year Quarter. On a constant currency basis, total same store gross profit increased 9.1%, driven byincreases from new vehicle retail, parts and service and F&I, partially offset by downward pressure on used vehicle retail margins.
Previous wording
New vehicle retail same store gross profit, on a constant currency basis, underperformed the Prior Year, primarily due to decrease in new vehicle retail gross profit per unit sold, partially offset by an increase in units sold, as a result of the increase in vehicle inventory production generating downward pressure on new vehicle margins.
Current wording
New vehicle retail same store gross profit, on a constant currency basis, outperformed the Prior Year Quarter, primarily due to an increase in units sold, partially offset by a decrease in new vehicle retail gross profit per unit sold as a result of the increase in vehicle inventory production generating downward pressure on new vehicle margins.
Previous wording
Used vehicle retail same store gross profit, on a constant currency basis, underperformed the Prior Year, driven by a decrease in used vehicle retail same store gross profit per unit sold, partially offset by an increase in used vehicle retail units sold.
Current wording
Used vehicle retail same store gross profit, on a constant currency basis, underperformed the Prior Year Quarter, driven by a decrease in used vehicle retail same store gross profit per unit sold, partially offset by an increase in used vehicle retail units sold.
Previous wording
Parts and service same store gross profit, on a constant currency basis, outperformed the Prior Year, driven by increases in parts and service same store revenues, as discussed above.
Current wording
Parts and service same store gross profit, on a constant currency basis, outperformed the Prior Year Quarter, driven by increases in parts and service same store revenues, as discussed above.
Previous wording
F&I same store gross profit, on a constant currency basis, underperformed the Prior Year Quarter, as described above in F&I same store revenues.
Current wording
F&I same store gross profit, on a constant currency basis, outperformed the Prior Year Quarter, asdescribed above in F&I same store revenues.
Previous wording
Total SG&A expenses in the U.K. during the Current Quarter increased $66.9 million, or 84.4%, as compared to the Prior Year Quarter. Total same store SG&A expenses in the U.K. during the Current Quarter increased $8.4 million, or 10.8%, as compared to the Prior Year Quarter. On a constant currency basis, total same store SG&A expenses increased 7.8%. These increases were primarily driven by fees associated with the Inchcape Acquisition, coupled with increased employee related costs and advertising costs, offset by lower facilities costs compared to the Prior Year Quarter.
Current wording
Total SG&A expenses in the U.K. during the Current Quarter increased $88.6 million, or 109.0%, as compared to the Prior Year Quarter. Total same store SG&A expenses in the U.K. during the Current Quarter increased $5.8 million, or 7.2%, as compared to the Prior Year Quarter. On a constant currency basis, total same store SG&A expenses increased 7.9%. The increases on a total same store basis were primarily driven by fees associated with acquisitions, coupled with increased employee related costs, offset by lower facilities costs, demonstration and loaner car expenses and advertising costs, compared to the Prior Year Quarter.
Previous wording
Consolidated Selected Comparisons — Three and Nine Months Ended September 30, 2024 Compared to 2023
Current wording
Consolidated Selected Comparisons — Three Months Ended March 31, 2025 Compared to 2024
Previous wording
Depreciation and amortization expense for the Current Quarter and Current Year was higher compared to the Prior Year Quarter and Prior Year, primarily driven by acquired property and equipment in our U.S. and U.K. regions, as we continue to strategically add dealership related real estate and facilities to our investment portfolio and make improvements to our existing facilities intended to enhance the profitability of our dealerships and improve the overall customer experience.
Current wording
Depreciation and amortization expense for the Current Quarter was higher compared to the Prior Year Quarter, primarily driven by acquired property and equipment in our U.S. and U.K. regions, as we continue to strategically add dealership related real estate and facilities to our investment portfolio and make improvements to our existing facilities intended to enhance the profitability of our dealerships and improve the overall customer experience.
Previous wording
Total floorplan interest expense during the Current Quarter, increased $14.6 million, or 88.7%, as compared to the Prior Year Quarter. For the Current Year, floorplan interest expense increased $31.6 million, or 70.6%, as compared to the Prior Year. The increase in floorplan interest expense during the Current Quarter and Current Year wasdriven primarily by an increase in inventories added to our floorplan due to improvements in manufacturer production as well as acquisitions, partially offset by realized gains on our interest rate swap portfolio due to increases in corresponding interest rates.
Current wording
Total floorplan interest expense during the Current Quarter, increased $6.4 million, or 31.0%, as compared to the Prior Year Quarter. The increase in floorplan interest expense during the Current Quarter wasdriven primarily by an increase in inventories added to our floorplan due to improvements in manufacturer production as well as acquisitions.
Previous wording
Other interest expense, net consists of interest charges primarily on our $750.0 million 4.00% Senior Notes due August 2028 (“4.00% Senior Notes”), $500.0 million 6.375% Senior Notes due January 2030 (“6.375% Senior Notes”), real estate related debt and other debt, partially offset by interest income.
Current wording
Other interest expense, net consists of interest charges primarily on our 4.00% Senior Notes, 6.375% Senior Notes, real estate related debt and other debt, partially offset by interest income.
Previous wording
Other interest expense, net during the Current Quarter, increased $13.3 million, or 50.1%, as compared to the Prior Year Quarter. For the Current Year, other interest expense, net, increased $30.4 million, or 42.1%, as compared to the Prior Year. The increase in other interest expense, net during the Current Quarter and Current Year was primarily attributable to increased borrowings on the Acquisition Line, the issuance of the 6.375% Senior Notes during the Current Quarter, additional real estate related debt in our U.S. and U.K. regions and higher interest rates on existing borrowings. Additionally, the difference in the Current Year was partly due to a decrease in the gain recognized on the de-designation of mortgage interest rate swaps as compared to the Prior Year of approximately$3.8 million. Refer to Note 8. Debt within our Notes to Condensed Consolidated Financial Statements for additional discussion of our debt. Refer to Note 6. Financial Instruments and Fair Value Measurements within our Notes to Condensed Consolidated Financial Statements for additional discussion of the de-designation of the mortgage interest rate swap.
Current wording
Other interest expense, net during the Current Quarter, increased $10.5 million, or 35.7%, as compared to the Prior Year Quarter. The increase in other interest expense, net during the Current Quarter was primarily attributable to interest expense associated with the 6.375% Senior Notes issued in 2024, as well as additional real estate related debt in our U.S. and U.K. regions. Refer to Note 9. Debt within our Notes to Condensed Consolidated Financial Statements for additional discussion of our debt.
Previous wording
Provision for income taxes of $42.5 million during the Current Quarter decreased by $13.9 million, or 24.7%, as compared to the Prior Year Quarter. For the Current Year, our provision for income taxes of$133.5 million decreased by $28.1 million or 17.4%, as compared to the Prior Year. The tax expense decrease in the Current Quarter and Current Year, as compared to the Prior Year Quarter and Prior Year, was primarily due to lower pre-tax book income. Our Current Year effective tax rate of 24.9%, remained consistent with the Prior Year effective tax rate of 24.7%.
Current wording
Provision for income taxes of $39.7 million during the Current Quarter decreased by $6.1 million, or 13.4%, as compared to the Prior Year Quarter. The tax expense decrease in the Current Quarter, as compared to the Prior Year Quarter, was primarily due to lower pre-tax book income. Our Current Quarter effective tax rate of 23.7%remained consistent with the Prior Year Quarter effective tax rate of 23.7%.
Previous wording
Sources and Uses of Liquidity from Operating Activities — Nine Months Ended September 30, 2024 Compared to 2023
Current wording
Sources and Uses of Liquidity from Operating Activities — Three Months Ended March 31, 2025 Compared to 2024
Previous wording
For the Current Year, net cash provided by operating activities decreased by $18.8 million, as compared to the Prior Year. On an adjusted basis for the same period, adjusted net cash provided by operating activities decreased by $99.4 million. The decrease on an adjusted basis was primarily driven by an $89.5 million decrease in net income, a $56.1 million decrease in accounts payable and accrued expenses and a $21.9 million decrease in floorplan notes payable – manufacturer affiliates, partially offset by an $87.5 million decrease in contracts-in-transit and vehicle receivables.
Current wording
For the Current Quarter, net cash provided by operating activities decreased by $95.2 million, as compared to the Prior Year Quarter. On an adjusted basis for the same period, adjusted net cash provided by operating activities decreased by $33.3 million. The decrease on an adjusted basis was primarily driven by a $19.8 million decrease in net income, a $115.3 million decrease in accounts payable and accrued expenses and a $98.6 million increase in contracts-in-transit and vehicle receivables, partially offset by a $182.8 million decrease in inventory levels.
Previous wording
Sources and Uses of Liquidity from Investing Activities — Nine Months Ended September 30, 2024 Compared to 2023
Current wording
Sources and Uses of Liquidity from Investing Activities — Three Months Ended March 31, 2025 Compared to 2024
Previous wording
For the Current Year, net cash used in investing activities increased by $863.5 million, as compared to the Prior Year. On an adjusted basis for the same period, adjusted net cash used in investing activities increased by $865.9 million, primarily due to a $903.5 million increase in acquisition activity, a $32.1 million increase in escrow payments for acquisitions and a $15.2 million increase in purchases of property and equipment, including real estate, partially offset by a $76.8 million increase in proceeds from disposition of franchises and property and equipment.
Current wording
For the Current Quarter, net cash used in investing activities decreased by $577.2 million, as compared to the Prior Year Quarter. On an adjusted basis for the same period, adjusted net cash used in investing activities decreased by $544.0 million, primarily due to a $624.4 million decrease in acquisition activity, partially offset by a $77.3 million decrease in proceeds from the disposition of franchises and property and equipment.
Previous wording
For the Current Year,$152.6 million was used to purchase property and equipment.
Current wording
For the Current Quarter,$52.2 million was used to purchase property and equipment.
Previous wording
Sources and Uses of Liquidity from Financing Activities — Nine Months Ended September 30, 2024 Compared to 2023
Current wording
Sources and Uses of Liquidity from Financing Activities — Three Months Ended March 31, 2025 Compared to 2024
Previous wording
For the Current Year, net cash provided by financing activities increased by $882.7 million, as compared to the Prior Year. On an adjusted basis for the same period, adjusted net cash provided by financing activities increased by $965.7 million. The increase in net cash provided by financing activities on an adjusted basis was primarily driven by the issuance of $500.0 million of 6.375% Senior Notes, a $419.0 million increase in net borrowings of other debt, including real estate-related debt and increases in net borrowings on our U.S. Floorplan line of $232.5 million (representing the net cash activity in our floorplan offset account). These increases were partially offset by a $179.5 million increase in net repayments on the Acquisition Line.
Current wording
For the Current Quarter, net cash used in financing activities increased by $433.0 million, as compared to the Prior Year Quarter. On an adjusted basis for the same period, adjusted net cash used in financing activities increased by $461.7 million. The increase in net cash used in financing activities on an adjusted basis was primarily driven by a $276.7 million increase in net repayments on the Acquisition Line, a $232.9 million increase in net repayments of other debt, including real estate-related debt and a $69.0 million increase in repurchases of common stock. These increases were partially offset by increases in net borrowings on our U.S. Floorplan line of $118.2 million (representing the net cash activity in our floorplan offset account).
Previous wording
(1) The available balance at September 30, 2024, includes $99.8 million of immediately available funds. The remaining available balance can be used for vehicle inventory financing.
Current wording
(1) The available balance at March 31, 2025, includes $105.1 million of immediately available funds. The remaining available balance can be used for vehicle inventory financing.
Previous wording
(2) The outstanding balance of $179.4 million is related to outstanding letters of credit of $12.2 million and $167.2 million in borrowings. The borrowings outstanding under the Acquisition Line included $75.0 million USD borrowings and £70.0 million of GBP borrowings translated at the spot rate on the day borrowed, solely for purposes of calculating the outstanding and available borrowings under the Acquisition Line in accordance with the Revolving Credit Facility. The available borrowings may be limited from time to time, based on certain debt covenant calculations, and as a result, the outstanding balance plus available borrowings may not equal the total commitment.
Current wording
(2) The outstanding balance of $51.8 million is related to outstanding letters of credit of $11.8 million and $40.0 million in USD borrowings. The available borrowings may be limited from time to time, based on certain debt covenant calculations, and as a result, the outstanding balance plus available borrowings may not equal the total commitment.
Previous wording
(5) The outstanding balance excludes $665.0 million of borrowings with manufacturer-affiliates and third-party financial institutions for foreign and rental vehicle financing not associated with any of our U.S. credit facilities.
Current wording
(5) The outstanding balance excludes $653.9 million of borrowings with manufacturer-affiliates and third-party financial institutions for foreign and rental vehicle financing not associated with any of our U.S. credit facilities.
Previous wording
From time to time, our Board of Directors authorizes the repurchase of shares of our common stock up to a certain monetary limit. On May 9, 2024, our Board of Directors increased the share repurchase authorization to $250.0 million. For the Current Year,438,165 shares were repurchased, at an average price of$295.80 per share, for a total of $129.6 million, excluding excise taxes of$1.1 million. As of September 30, 2024, we had $174.8 million available under our current share repurchase authorization.
Current wording
From time to time, our Board of Directors authorizes the repurchase of shares of our common stock up to a certain monetary limit. On November 12, 2024, our Board of Directors increased the share repurchase authorization to $500.0 million. During the Current Quarter,286,731 shares were repurchased, at an average price of$428.33 per share, for a total of $122.8 million, excluding excise taxes of$0.7 million. As of March 31, 2025, we had $353.3 million available under our current share repurchase authorization.
Showing the first 40 of 41 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
New vehicle retail same store gross profit underperformed the Prior Year Quarter, driven by a decrease in new vehicle retail same store gross profit per unit sold, partially offset by an increase in units sold.
Rearranged previous paragraphs (11)
Previous report — wording carried elsewhere
(1) Floorplan assistance is included within Gross Profit — New vehicle retail sales above and Cost of Sales — New vehicle retail sales in our Condensed Consolidated Statements of Operations.
Previous report — wording carried elsewhere
F&I same store revenues slightly underperformed the Prior Year Quarter, primarily driven by fewer same store used vehicle units sold, partially offset by higher same store F&I gross profit per unit sold. Penetration rates for vehicle service contracts, new vehicle finance and other F&I products improved, contributing to the higher same store F&I gross profit per unit sold. OEM incentives have increased in the Current Quarter, leading to the improved new vehicle F&I penetration.
Previous report — wording carried elsewhere
F&I same store gross profit, slightly underperformed the Prior Year Quarter, as described above for F&I same store revenues.
Previous report — wording carried elsewhere
Total same store gross margin in the U.S. decreased 39 basis points, primarily driven by an underperformance in new vehicle retail for the reasons described above for same store gross profit for new vehicle retail. This underperformance was partially offset by an outperformance in used vehicle wholesale as described above in same store used vehicle gross profit.
Previous report — wording carried elsewhere
Same Store Operating Data — U.S.
Previous report — wording carried elsewhere
Parts and service same store gross profit outperformed the Prior Year, as described above for parts and service same store revenues.
Previous report — wording carried elsewhere
Parts and service same store gross profit, on a constant currency basis, outperformed the Prior Year Quarter, driven by increases in parts and service same store revenues, as discussed above in parts and service same store revenues.
Previous report — wording carried elsewhere
Same Store Operating Data — U.K.
Previous report — wording carried elsewhere
Retail new vehicle units sold include new vehicle agency units. The agency units and related revenues are excluded from the calculation of the average sales price per unit sold for new vehicles as only the sales commission is reported within revenues. The agency units and related net revenues are included in the calculation of gross profit per unit sold. The GBP to USD foreign currency exchange rate has fluctuated from £1 to $1.221 at September 30, 2023, to £1 to $1.339 at September 30, 2024, or an increase in the value of the GBP of 9.7%.
Previous report — wording carried elsewhere
Parts and service same store revenues, on a constant currency basis, outperformed the Prior Year, driven by increases in customer pay, warranty and wholesale revenues reflecting increased business activity. We have invested in improvements to our U.K. customer contact center, streamlining operations to make scheduling appointments easier for customers, resulting in an increase in parts and service activity driving an increase in revenues as compared to the Prior Year.
Previous report — wording carried elsewhere
F&I same store gross profit, on a constant currency basis, underperformed the Prior Year, as described above in F&I same store revenues.