Group 1 Automotive, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company achieved total revenues of $5,221.4 million for the three months ended September 30, 2024, marking an increase of $516.3 million (11.0%) compared to $4,705.1 million in the same period of 2023. For the nine months ended September 30, 2024, total revenues reached $14,388.3 million, up from $13,393.7 million, reflecting a growth of $994.6 million (7.4%).
Gross profit for the third quarter was $852.7 million, an increase of $66.4 million (8.4%) from $786.2 million in the prior year. However, income from operations decreased to $231.6 million from $261.6 million, and net income from continuing operations fell to $117.1 million from $164.1 million year-over-year. Basic earnings per share from continuing operations also declined to $8.73 from $11.72.
The company’s balance sheet showed total assets of $9,976.5 million as of September 30, 2024, up from $7,774.1 million at the end of 2023. This increase was driven by a rise in inventories, which reached $2,752.2 million, compared to $1,963.4 million at the end of 2023. Total current liabilities also increased significantly to $3,623.9 million from $2,505.7 million.
Strategically, Group 1 completed the acquisition of Inchcape Retail on August 1, 2024, for approximately $517.0 million, adding 54 dealership locations and three collision centers in the U.K. The acquisition contributed $333.8 million in revenues from the acquisition date through September 30, 2024, with a net income of $5.1 million attributed to Inchcape Retail during the same period. The company also acquired nine dealerships in the U.S. for $690.4 million during the nine months ended September 30, 2024.
Operating expenses increased, with SG&A expenses for the third quarter rising to $591.6 million from $496.7 million in 2023, reflecting a 19.1% increase. The company also faced higher floorplan interest expenses, which rose to $31.1 million from $16.5 million year-over-year.
In terms of cash flow, net cash provided by operating activities decreased to $373.7 million for the nine months ended September 30, 2024, down from $392.5 million in the prior year. However, net cash provided by financing activities surged to $840.9 million, compared to a negative $41.7 million in the same period of 2023, primarily due to the issuance of $500.0 million in senior notes.
Overall, while Group 1 Automotive experienced revenue growth and strategic expansion through acquisitions, profitability metrics showed declines, reflecting increased operational costs and market pressures.
About GROUP 1 AUTOMOTIVE INC
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