- Expected Annual Revenues of $350
Million
- The Company Also Provides a Share Repurchase
Update
HOUSTON, Feb. 26,
2024 /PRNewswire/ -- Group 1 Automotive, Inc.
(NYSE: GPI) ("Group 1" or the "Company"), an international
Fortune 300 automotive retailer with 200 dealerships located in the
U.S. and U.K., today announced the acquisition of Newport
Lexus and Tustin Lexus, two high
performing Lexus dealerships in Orange
County, California. The dealerships are expected to
generate $350 million in annual
revenues bringing 2024 year-to-date total acquired revenues for
Group 1 to $850 million, which
follows $1.1 billion of acquired
revenues in 2023.
The Company also updated its year-to-date share repurchase
activity of 174,964 shares of common stock at an average price
of $264.88 for a total of $46.3 million. As of
February 26, 2024, the Company
had $97.0 million available under its current share repurchase
authorization.
Group 1's President and CEO Daryl
Kenningham stated, "We are thrilled to expand our Southern
California platform with this exceptional luxury brand.
Our strong relationship with Lexus and experience in this
market area make this a tremendous addition for Group 1. The
transaction highlights our commitment to strategic portfolio
optimization with growth through larger dealership acquisitions
while disposing of smaller, less profitable stores. We also
intend to opportunistically execute share repurchases when our
stock represents an attractive value."
The Company's share 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. The Company expects that any repurchase of
shares will be funded by cash from operations. Repurchased
shares will be held in treasury.
ABOUT GROUP 1 AUTOMOTIVE, INC.
Group 1 owns
and operates 200 automotive dealerships, 262
franchises, and 43 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 and insurance 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, on a timely
basis, if at all and the risks associated therewith, (h) foreign
exchange controls and currency fluctuations, (i) the armed
conflicts in Ukraine and the Middle East, (j) the impacts of any
potential global recession, (k) our ability to maintain sufficient
liquidity to operate, and (l) 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.
Investor contacts:
Terry
Bratton
Manager, Investor Relations
Group 1 Automotive, Inc.
ir@group1auto.com
Media contacts:
Pete
DeLongchamps
Senior Vice President, Manufacturer Relations, Financial Services
and Public Affairs
Group 1 Automotive, Inc.
pdelongchamps@group1auto.com
or
Clint Woods
Pierpont Communications, Inc.
713-627-2223
cwoods@piercom.com
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SOURCE Group 1 Automotive, Inc.
