Group 1 Automotive, Inc. · NYSE:GPI
Group 1 Automotive — Q4 2024 Earnings Presentation
35 slides from Group 1 Automotive's earnings presentation, Jan 29, 2025
Slide 1: Fourth Quarter & Full Year 2024 Financial Results
Fourth Quarter & Full Year 2024 Financial Results Investor Presentation January 29, 2025
Slide 2: Forward looking statements
Forward looking statements This presentation 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, th
Slide 3: 4Q24 Summary
4Q24 Summary ($MM) Financial Highlights: Total Company Revenues Same Store Revenues + Quarterly record total revenues of $5.5B an increase of 24% YoY $680 + Quarterly record total gross profit of $879M an increase of 20% YoY 25% 9% $576 $226 $530 11% $202 + Full Year all-time record for retail new a
Slide 4: Consistent Profitability & Strong Cash Flow Portfolio
Consistent Profitability Portfolio Parts & Service Employer of Choice Leading Customer & Strong Cash Flow Optimization Growth within the Auto Experience & Partner of Industry Choice + Continued strong EPS: + Balanced M&A, share + Outperformance of the peer + Our employees are the + Strive to be grea
Slide 5: Portfolio Optimization
Portfolio Optimization 2019-20 2021 2022 2023 2024 Acquisitions: Acquisitions: Acquisitions: Acquisitions: Acquisitions: $430M $2.5B $940M $1.1B $3.9B (15 franchises) (58 franchises) (11 franchises) (9 franchises) (84 franchises) M&A Dispositions: Dispositions: Dispositions: Dispositions: Dispositio
Slide 6: 2024 U.S. Acquisitions
2024 U.S. Acquisitions Nine dealerships with expected annual revenues of $1.0B + Portfolio Optimization: Following recent disposals of smaller, lower volume dealerships, these acquisitions include higher throughput. + Highly desirable brands: Acquisitions include 2 Lexus, 1 Mercedes-Benz, 1 . Toyota
Slide 7: 2024 U.K. Acquisitions
2024 U.K. Acquisitions 59 dealerships with expected annual revenues of $2.9B + Highly desirable brands: Acquisitions includes Audi, BMW/MINI, Jaguar Land Rover, Lexus, Mercedes-Benz/smart, Porsche, Toyota, Volkswagen and Volkswagen Commercial Vehicles + Choice Locations: Complementing our footprint
Slide 8: Business Diversification
Business Diversification Parts & Service business provides stability in economic cycles Revenue Gross Profit 4% Finance & Insurance Parts & Service is the heart of Group 1’s >40% 12% 26% Parts & Service Used Vehicles business model and generates of total gross profit New Vehicles 32% 4Q24 Fixed Abso
Slide 9: Diversified Geographic Footprint
Diversified Geographic Footprint United Kingdom England & Wales Total U.S. & U.K.* 114 Dealerships 259 Dealerships 23% of New Vehicle Unit Sales* 331 Franchises United States 39 Collision Centers 17 States Maine (4) 35 Brands Lancashire (1) 145 Dealerships New Hampshire (4) Boston Metro (18) Greater
Slide 10: 2024 Brand Diversification
2024 Brand Diversification Revenue Mix Unit Mix Brand diversity reduces risk from evolving 21% 18% 19% consumer preferences 36% 46% 36% 12% 43% Import Luxury Domestic Import Luxury Domestic 9% 8% 8% 7% 7% 6% 6% 5% 3% 2% 2% 2% 2% 1% <1% Other May not add to 100% due to rounding © Group 1 Automotive 2
Slide 11: New Vehicle Overview
New Vehicle Overview GPI Outperforms the New Vehicle Industry 2024 GPI U.S. Same Store Retail Unit Sales: +4% YoY 2024 U.S. New Market Unit Sales1: +3% YoY Total New Vehicle U.S. New Market Revenues ($MM)* Size1 (MM) Annual New Vehicle Units +10% 17 18 17 17 2019-2024 17 CAGR 16 16 15 15 14 2024 9,9
Slide 12: Used Vehicle Overview
Used Vehicle Overview GPI Outperforms the Used Vehicle Industry 2024 GPI U.S. Same Store Retail Unit Sales: +3% YoY 2024 U.S. Used Market Unit Sales2: +1% YoY Total Used Vehicle U.S. Used Market Revenues ($MM)* Size1 (MM) 41 Annual Used Vehicle Units U.S. Market Share2 +12% 2019-2024 CAGR 40 40 Reta
Slide 13: Finance & Insurance Overview
4Q24 U.S. Same Store F&I GP PRU: Finance & Insurance Overview +5% YoY U.S. F&I Gross Profit Per Retail Unit (PRU) $2,428 $2,368 $2,338 Improved F&I Profitability $2,155 via focus on compliance & growth: $1,951 $1,782 + Optimized financing strategy with OEM partners and $1,710 $1,647 consolidated len
Slide 14: Parts & Service Overview
Parts & Service Overview Strong Financials + Stability of free cash flow through economic cycles + Above sector-average growth through strategic emphasis on customer service Competitive Advantage + Technology: Easy online booking, #1 ranked call center(1) and customer management software improve eff
Slide 15: Parts & Service Overview
Parts & Service Overview Service-to-Service Retention by Model Year* 76% 77% Consolidated P&S 72% 71% 71% 69% 67% 68% 65% 63% Revenue (1) ($MM) 60% 54% +11% 2019-2024 CAGR 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 10+ Yrs Average *Represents vehicles having 2 service visits in 15 months. 202
Slide 16: Battery EV Parts & Service Outlook
Battery EV Parts & Service Outlook Our dealerships are equipped to service all powertrain types + GPI is investing in the tooling & + BEVs still require repairs and technician training for all brands 5-year repair and maintenance maintenance, despite not needing some common low-margin cost of owners
Slide 17: Structurally Lower SG&A % of GP
Structurally Lower SG&A % of GP We continue to fully leverage our scale and cost structure 2024 Adjusted SG&A % of GP2019 (2) 2019 U.S. Salesperson Productivity (1) Improvement compared to 2019 28% 2024 4.2% Advertising 3.0% 6.1% Rent & Facility 5.5% Other 16.0% Personnel 2024 SS Headcount 15.1% Red
Slide 18: Group Leadership Team
Group 1 Leadership Team Daryl Kenningham Daniel McHenry Pete DeLongchamps President, CEO and Director SVP and CFO SVP, Financial Services and Manufacturer Relations Joined GP1 July 2011 Joined GP1 February 2007 Joined GP1 July 2004 + 35+ Years Industry Experience + 15+ Years Industry Experience + 35
Slide 19: Group 1's Core Values
Group 1’s Core Values Integrity Transparency Professionalism Teamwork Respect We conduct ourselves with the We promote open and honest We set our standards We put the interest of the group We treat everyone, customers highest level of ethics both communication between each high so that we can exceed
Slide 20: Sustainability Highlights
Sustainability Highlights* 1,035 100% 8,000+ 33,000+ EV charging stations of repair centers Solar panels Employee available at Group 1 equipped for hybrids & installed at Group 1 training hours locations EVs locations completed 44% 53% 16,011 80% / 76% of Group 1 Board of Employee Diversity Team Mem
Slide 21: Appendix
Appendix 2024 Financial Results
Slide 22: Revenue, Adjusted EPS, Adjusted FCF
Revenue* ($MM) Adjusted EPS* Adjusted FCF* ($MM) $45.85 $803 $44.24 $19,934 $39.29 $17,874 $656 $35.02 $16,412 $581 $13,802 $504 $12,044 $426 $10,852 $18.06 $237 $10.93 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 +11% +29% +16% CAGR CAGR CAGR *Based on c
Slide 23: Cash Flow Summary
Cash Flow Summary + $179 million in capital expenditures year-to- + $162 million in share buybacks year-to-date representing 4% of share date count Adjusted Operating Cash Flow* $916 Adjusted Free Cash Flow* Rent Adjusted Total Liquidity $803 Leverage Ratio ($MM) $755 $720 $683 $656 $581 3.0x $1,216
Slide 24: Income from Operations & Margin Trend
Income from Operations & Margin Trend Adjusted Operating Margin* 6.6% 6.5% 5.5% 5.0% 4.7% $1,058 3.4% $991 $945 $893 Adjusted Operating Income* ($MM) $526 395 2019 2020 2021 2022 2023 2024 *See Appendix for Non-GAAP Reconciliations © Group 1 Automotive 2025 All Rights Reserved. 24
Slide 25: Debt & Interest Rate Exposure
Debt & Interest Rate Exposure Debt Maturities in millions, excludes floorplan + GPI’s total debt at December 31, 2024 including floorplan was $4.9B: $917 $ 946 ~$2,020 million of floorplan debt ~$1,250 million of mortgage debt ~$1,250 million of bond debt ~$95 million of acquisition line debt ~$330
Slide 26: Real Estate Strategy
Real Estate Strategy Dealership Property Breakdown by Region (as of December 31, 2024) GPI is shifting toward Dealerships owning more real estate: Region Owned Leased United States 113 32 + Control of dealership real estate is a strong strategic asset United Kingdom 66 48 Total 179 80 + Ownership me
Slide 27: Exposure to Strong Economic Growth
Exposure to Strong Economic Growth Group 1 will continue to benefit from Texas’ sustained economic growth + Texas continues to be the fastest growing state in the U.S. (1) + GPI is the #1 Auto Retailer + Texas is the leading destination for corporate relocation and expansion projects. (2) in Texas +
Slide 28: Non-GAAP Reconciliations
Non-GAAP Reconciliations 2024 Financial Results
Slide 29: Non-GAAP Financial Measures, Same Store Data, and Other Data
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 results and any impact on the Company of strategic decisions and actions
Slide 30: Reconciliation: Adjusted Income from Operations (Non-GAAP)
Reconciliation: Adjusted Income from Operations (Non-GAAP) (Unaudited, $MM) 2019 2020 2021 2022 2023 2024 As Reported Income from Operations $358 $496 $884 $1,091 $969 $909 Asset impairments and accelerated 22 27 2 2 34 40 depreciation (Gain) loss on real estate and dealership (4) (5) (4) (39) (22)
Slide 31: Reconciliation: Adjusted Cash Flow (Non-GAAP)
Reconciliation: Adjusted Cash Flow (Non-GAAP) (Unaudited, $MM) 2019 2020 2021 2022 2023 2024 Operating Cash Flow (GAAP) $371 $805 $1,260 $586 $190 $586 Change in Floorplan notes payable - credit facilities and other, excluding floorplan (43) (314) (491) 320 505 133 offset account and net acquisition
Slide 32: Reconciliation: Adjusted Continuing Ops Earnings Per Share (Non-GAAP)
Reconciliation: Adjusted Continuing Ops Earnings Per Share (Non-GAAP) (Unaudited) 4Q23 4Q24 As Reported EPS from Continuing Ops $7.87 $7.08 After Tax Adjustments: Asset impairments and accelerated depreciation 1.39 1.98 (Gain) loss on real estate and dealership transactions - (0.08) Catastrophic Eve
Slide 33: Reconciliation: Adjusted Total Earnings Per Share (Non-GAAP)
Reconciliation: Adjusted Total Earnings Per Share (Non-GAAP) (Unaudited) 2019 2020 2021 2022 2023 2024 As Reported EPS $9.34 $15.51 $30.11 $47.14 $42.73 $36.81 After Tax Adjustments: Asset impairments and accelerated depreciation 0.94 1.69 0.07 0.10 1.82 2.26 (Gain) loss on real estate and dealershi
Slide 34: Reconciliation: Adjusted SG&A (Non-GAAP)
Reconciliation: Adjusted SG&A (Non-GAAP) (Unaudited, $MM) 2019 2024 SG&A Expenses – GAAP $1,312 $2,179 Gain (loss) on real estate and dealership transactions 4 56 Catastrophic Events (18) (9) Legal items and other professional fees (1.1) (4) Severance Costs - (1) Acquisitions costs - (21) SG&A Expen
Slide 35: Thank you
Thank you www.group1auto.com