Group 1 Automotive Reports 44 Percent Rise in Fourth-Quarter Earnings; Declares First Quarterly Cash Dividend.
Business Wire › February 23, 2006
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Group 1 Automotive Reports 44 Percent Rise in Fourth-Quarter Earnings; Declares First Quarterly Cash Dividend.
HOUSTON -- Group 1 Automotive, Inc. (NYSE:GPI), a Fortune 500 automotive retailer, today reported that 2005 fourth-quarter net income rose 44 percent over the comparable period of 2004 to $16.2 million. Earnings per diluted share increased 40 percent to $0.66.
The company also announced that its board of directors declared its first cash dividend of $0.13 per share for the fourth quarter of 2005. The dividend will be paid on March 15, 2006, to stockholders of record on March 6. Although total revenues for the quarter represented a 1 percent decrease from the prior year to $1.4 billion, a 50 basis-point improvement in total gross margin had a major impact on overall results. The margin improvement was driven by a 70 basis-point increase in used vehicle retail margins, a significant decrease in used vehicle wholesale losses and a 3.9 percent growth in parts and service sales. Additionally, the company realized for the fourth quarter a 280 basis-point reduction in total selling, general and administrative (SG&A) expenses to 80.4 percent of gross profit. Finally, results were positively impacted by adjustments to deferred tax items for certain assets and liabilities of $0.08 per diluted share, offset by asset impairment charges of $0.07 per diluted share. "De...See the full content of this document
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