On April 26, automotive retailer Group 1 Automotive
- Revenue increased 7.4%, primarily thanks to growth in new and used vehicle sales and parts and service revenue, offset by a decline in used vehicle wholesale revenue.
- Gross margin decreased 50 bps on continuing weakness in the company's domestic stores and decrease in manufacturer dealer incentives and rebates realized.
- Group 1 has a five-star rating (the highest) in The Motley Fool's community-intelligence tool, CAPS. Competitors AutoNation
(NYSE:AN) and Inside Value recommendation CarMax(NYSE:KMX) have three-star ratings. Interested in understanding why? Then come be a part of the CAPS community!
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$1,522.7 |
$1,417.6 |
7.4% |
|
Net Profit |
$17.4 |
$22.3 |
(21.8%) |
|
EPS |
$0.72 |
$0.91 |
(20.9%) |
|
Diluted Shares |
24.1 |
24.5 |
(1.5%) |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
16.2% |
16.7% |
(0.5) |
|
Operating Margin |
2.9% |
3.7% |
(0.8) |
|
Net Margin |
1.2% |
1.6% |
(0.4) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$37.0 |
$35.2 |
5.1% |
|
Accounts Rec.* |
$262.0 |
$232.4 |
12.8% |
|
Inventory |
$851.2 |
$845.4 |
0.7% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$135.0 |
$117.0 |
15.4% |
|
Long-Term Debt |
$490.1 |
$158.0 |
210.2% |
The balance sheet reflects the company's health.
Cash Flow Highlights
Presenting an earnings release without a cash flow statement is like driving a car without insurance -- not a very good idea.
Free cash flow is a Fool's best friend.
Related Foolishness:
CarMax is a Motley Fool Inside Value selection.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
