Group 1 Automotive, Inc (GPI) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $30.83 million, or $ 1.44 a share in the quarter, against a net loss of $33.39 million, or $1.41 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $37.26 million, or $1.74 a share compared with $35.67 million or $1.51 a share, a year ago.
Revenue during the quarter went up marginally by 0.04 percent to $2,673.63 million from $2,672.60 million in the previous year period. Gross margin for the quarter expanded 33 basis points over the previous year period to 14.56 percent. Total expenses were 97.12 percent of quarterly revenues, down from 99.89 percent for the same period last year. This has led to an improvement of 277 basis points in operating margin to 2.88 percent.
Operating income for the quarter was $76.92 million, compared with $2.94 million in the previous year period.
"We are pleased with our overall performance in 2016 given the economic and political challenges we faced in each of our regions. Despite those headwinds, we delivered record revenue of $10.9 billion and grew adjusted diluted earnings per share 8 percent to a new, all-time record of $7.42. We closed the year on a strong note, with fourth quarter adjusted EPS growth of 15 percent over last year, reflecting improved new vehicle margins and strong cost control," said Earl J. Hesterberg, Group 1’s president and chief executive officer. "In addition, the progress we delivered on both our cost structure during the fourth quarter and the reduction of our U.S. new vehicle inventory, which ended the Quarter with a 65 day supply, has us well positioned as we enter 2017."
Debt comes down marginally
Group 1 Automotive, Inc has recorded a decline in total debt over the last one year. It stood at $2,729.42 million as on Dec. 31, 2016, down 1.57 percent or $43.64 million from $2,773.06 million on Dec. 31, 2015. Total debt was 61.17 percent of total assets as on Dec. 31, 2016, compared with 62.81 percent on Dec. 31, 2015. Debt to equity ratio was at 2.93 as on Dec. 31, 2016, down from 3.02 as on Dec. 31, 2015. Interest coverage ratio improved to 6.87 for the quarter from 0.29 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
