Group 1 Automotive Announces Record Fourth Quarter and Full Year 2022 Financial Results |

HOUSTON – Group 1 Automotive, Inc. (NYSE: GPI) (‘Group 1’ or the ‘Company’), an international, Fortune 300 automotive retailer with 204 dealerships located in the U.S. and U.K., today reported record fourth quarter (‘current quarter’) and full year 2022 (‘current year’) financial results.

* Fourth Quarter and Full Year Diluted Earnings Per Common Share from Continuing Operations of $10.75 and $47.31, respectively, increased 18.6% and 38.7%, over the comparable prior year period

* Full Year Revenues and Gross Profit of $16.2 billion and $3.0 billion, respectively, increased 20.3% and 21.5%, over the comparable prior year period

* FY22 Share Repurchases of 3,021,023 Shares; ~ 17.6% of Common Shares

Current year total revenues of $16.2 billion, total gross profit of $3.0 billion, and diluted earnings per common share from continuing operations of $47.31 were the highest in Company history. Consolidated revenues for the current year saw double digit growth across all major business lines, and consolidated new vehicle and parts and service gross profit grew over 25.0% in the current year, with parts and service gross profit exceeding $1.0 billion for the first time.

‘I am very proud of our team for their outstanding achievements this year. Together, we delivered record revenues, gross profit, and diluted earnings per common share from continuing operations,’ said Daryl Kenningham, Group 1’s President and Chief Executive Officer. ‘We added incremental scale by acquiring close to $1 billion of revenues and continued to return capital to our shareholders through share repurchases, buying back approximately 18% of our outstanding common shares in 2022. As the industry accelerates into new paradigms, that presents outstanding opportunities for Group 1 to demonstrate our leadership. With our disciplined capital allocation and demonstrated operating excellence in critical areas of our business, we are very well positioned to take advantage of these changes in the future.’

Reconciliations for financial results, non-GAAP metrics, and diluted earnings per common share between continuing and discontinued operations are included in the accompanying financial tables.

Current Quarter Results Overview

Total revenues for the current quarter were $4.1 billion, a 16.6% increase compared to $3.5 billion for the fourth quarter of 2021 (‘prior year quarter’).

Net income from continuing operations for the current quarter was $156.7 million, a 4.0% decrease compared to $163.2 million for the prior year quarter. Current quarter adjusted net income from continuing operations (a non-GAAP measure) was $158.4 million, a 6.7% decrease compared to $169.9 million in the prior year quarter.

Current quarter diluted earnings per common share from continuing operations was $10.75, an 18.6% increase compared to $9.06 for the prior year quarter. Current quarter adjusted diluted earnings per common share from continuing operations (a non-GAAP measure) was $10.86, a 15.2% increase over the prior year quarter of $9.43. Current quarter and prior year quarter adjusted diluted earnings per common share from continuing operations exclude adjusted diluted earnings per common share from discontinued operations of $0.01 and $0.10, respectively.

Fourth Quarter 2022

Key Performance Metrics

https://www.group1corp.com/2023-01-25-Group-1-Automotive-Announces-Record-Fourth-Quarter-and-Full-Year-2022-Financial-Results

Full Year 2022 Results Overview

Current year total revenues were $16.2 billion, a 20.3% increase compared to $13.5 billion for the full year 2021 (‘prior year’).

Current year net income from continuing operations was $754.2 million, a 20.6% increase compared to $625.4 million for the prior year. Current year adjusted net income from continuing operations (a non-GAAP measure) was $728.7 million, a 15.0% increase compared to $633.7 million for the prior year.

Current year diluted earnings per common share from continuing operations was $47.31, a 38.7% increase over $34.11 for the prior year. Current year adjusted diluted earnings per common share from continuing operations (a non-GAAP measure) was $45.71, a 32.3% increase over $34.55 for the prior year. Current year and prior year adjusted diluted earnings per common share from continuing operations exclude adjusted diluted earnings per common share from discontinued operations of $0.14 and $0.46, respectively.

Full Year 2022

Key Performance Metrics: See full release at:

https://www.group1corp.com/2023-01-25-Group-1-Automotive-Announces-Record-Fourth-Quarter-and-Full-Year-2022-Financial-Results

Corporate Development

In December 2022, the Company acquired Mercedes-Benz and Sprinter franchises in California. This acquisition is expected to generate $200.0 million of annual revenues, bringing current year total acquired expected annual revenues to $940.0 million. From January 1, 2021 to December 31, 2022, the Company has acquired total expected annual revenues of $3.4 billion.

Share Repurchases

During the current quarter, the Company repurchased 973,365 shares, representing approximately 5.7% of the Company’s current year beginning outstanding common shares, at an average price per common share of $166.14, for a total of $161.7 million. During the current year, the Company repurchased 3,021,023 shares, representing approximately 17.6% of the Company’s current year beginning outstanding common shares, at an average price per common share of $172.54, for a total of $521.2 million. As of December 31, 2022, the Company had an aggregate 14.3 million outstanding common shares and unvested restricted stock awards.

The Company adopted a Rule 10b5-1 trading plan that was effective from January 3, 2023 to January 23, 2023. Under this plan, the Company repurchased an additional 76,294 shares, at an average price of $179.42, for a total cost of $13.7 million. As of January 23, 2023, the Company’s aggregate outstanding common shares and unvested restricted stock awards approximates 14.2 million shares. The Company currently has $149.7 million remaining on its Board authorized common share repurchase program.

Future repurchases may be made from time to time, based on market conditions, legal requirements, and other corporate considerations, in the open market or in privately negotiated transactions, and subject to Board approval and covenant restrictions.

Fourth Quarter and Full Year 2022 Earnings Conference Call Details

Group 1’s senior management will host a conference call today at 10 a.m. ET to discuss the fourth quarter and full year 2022 financial results. The conference call will be simulcast live on the Internet at group1corp.com/events. A webcast replay will be available for 30 days.

The conference call will also be available live by dialing in 10 minutes prior to the start of the call at:

Domestic:

1-888-317-6003

International:

1-412-317-6061

Passcode:

9229065

A telephonic replay will be available following the call through February 1, 2023, by dialing:

Domestic:

1-877-344-7529

International:

1-412-317-0088

Replay Code:

7685772

ABOUT GROUP 1 AUTOMOTIVE, INC.

Group 1 owns and operates 204 automotive dealerships, 275 franchises, and 46 collision centers in the United States and the United Kingdom that offer 35 brands of automobiles. Through its dealerships and omni-channel platform, 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.

Group 1 discloses additional information about the Company, its business, and its results of operations at www.group1corp.com, www.group1auto.com, www.group1collision.com, www.acceleride.com, www.facebook.com/group1auto, and www.twitter.com/group1auto.

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 and business strategy, including the annualized revenues of recently completed acquisitions or dispositions and other benefits of such currently anticipated or recently completed acquisitions or dispositions. These forward-looking statements often contain words such as ‘expects,’ ‘anticipates,’ ‘intends,’ ‘plans,’ ‘believes,’ ‘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) the impacts of COVID-19 and the armed conflict in Ukraine on our business and the supply chains upon which our business is dependent, (j) the impacts of continued inflation and any potential global recession, (k) our ability to maintain sufficient liquidity to operate, (l) the risk that proposed transactions will not be consummated in a timely manner, and (m) our ability to successfully integrate recent and future acquisitions. 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 Securities and Exchange Commission, 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.

NON-GAAP FINANCIAL MEASURES, SAME STORE DATA, AND OTHER DATA

In addition to evaluating the financial condition and results of our operations in accordance with U.S. GAAP, from time to time our management evaluates and analyzes…