Group 1 reported that net income for the period, which ended Sept. 30, was $26.4 million, or $.10 a share, on revenue of $1.6 billion compared with net income of $21.6 million, or $.88 per share a year earlier, reported the Houston Business Journal.
On a same-store basis, total revenue was flat, as Toyota new vehicle sales improved and used vehicle retail sales were offset by lower domestic new vehicle sales and a reduction in used vehicle wholesale sales.
Group 1 achieved a 130 basis-point reduction in total selling, general and administrative expenses to 75.3 percent of gross profit, primarily attributable to gross profit improvements and a continued focus on increasing operating efficiencies.
Over the last year, the company has added one domestic franchise and 14 import franchises. These 15 franchises are expected to generate $732 million in estimated annual revenue. The addition of these franchises completes the company’s acquisition program for 2006.
As a result of the strong quarter and prospects for the rest of the year, Group 1 raised its 2006 full-year earnings guidance range from between $3.40 and $3.70 per diluted share to between $3.65 and $3.75 per diluted share.