HOUSTON, May 18, 2022
/PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI) ("Group
1" or the "Company"), an international, Fortune 300 automotive
retailer with 202 dealerships located in the U.S. and U.K., today
announced its board of directors increased the Company's common
stock repurchase authorization by $175
million to $250 million, and
also declared an increase to the quarterly cash dividend.
"We continue to demonstrate strong cash flow and a healthy
balance sheet, which has enabled significant capital deployment in
2022. We look to continue growth via acquisitions while also
returning capital to our shareholders," said Earl J. Hesterberg, Group 1's President and
Chief Executive Officer.
- Share Repurchases & Authorization Increase
The
Company announced that its board of directors increased the
Company's common stock share repurchase authorization by
$175 million to $250 million. The Company also updated
their year-to-date repurchase activity of 796,060 shares of common
stock at an average price of $179.72 for a total
of $143.1 million, which represents 4.6 percent of Group 1's
outstanding share count at January 1,
2022. Purchases may be made from time to time, based
on market conditions, legal requirements, and other corporate
considerations, in the open market or in privately negotiated
transactions. The Company expects that any repurchase of
shares will be funded by cash from operations. Repurchased
shares will be held in treasury.
- Quarterly Cash Dividend Increase
Group 1's board of
directors also declared a cash dividend of $0.37 per share for the first quarter of
2022. The dividend represents an increase of 2.8%, or
$0.01 per share, from the fourth
quarter of 2021, and will be payable on June
15, 2022, to stockholders of record as of June 1, 2022.
ABOUT GROUP 1 AUTOMOTIVE,
INC.
Group 1 owns and operates 202 automotive dealerships,
268 franchises, and 46 collision centers in
the United States and the
United Kingdom that offer
34 brands of automobiles. Through its dealerships, the
Company sells new and used cars and light trucks; arranges related
vehicle financing; sells service contracts; provides automotive
maintenance and repair services; and sells vehicle parts.
Group 1 discloses additional information about the Company,
its business, and its results of operations at www.group1corp.com,
www.group1auto.com, www.group1collision.com, www.acceleride.com,
www.facebook.com/group1auto, and
www.twitter.com/group1auto.
FORWARD-LOOKING
STATEMENTS
This press release 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, the economy and other future conditions. In this
context, the forward-looking statements often include statements
regarding our goals, plans, projections and guidance regarding our
financial position, results of operations and business strategy,
and often contain words such as "expects," "anticipates,"
"intends," "plans," "believes," "seeks," "should," "foresee," "may"
or "will" and similar expressions. While management believes that
these forward-looking statements are reasonable as and when made,
there can be no assurance that future developments affecting us
will be those that we anticipate. Any such forward-looking
statements are not assurances of future performance and involve
risks and uncertainties that may cause actual results to differ
materially from those set forth in the statements. These risks and
uncertainties include, among other things, (a) general economic and
business conditions, (b) the level of manufacturer incentives, (c)
the future regulatory environment, (d) our ability to obtain an
inventory of desirable new and used vehicles, (e) our relationship
with our automobile manufacturers and the willingness of
manufacturers to approve future acquisitions, (f) our cost of
financing and the availability of credit for consumers, (g) our
ability to complete acquisitions and dispositions and the risks
associated therewith, (h) foreign exchange controls and currency
fluctuations, (i) the impacts of COVID-19 and the armed conflict in
Ukraine on our business and the supply chains upon which our
business is dependent, (j) the impacts of any potential global
recession, (k) our ability to maintain sufficient liquidity to
operate, (l) the risk that proposed transactions will not be
consummated in a timely manner, and (m) our ability to successfully
integrate recent and future acquisitions. For additional
information regarding known material factors that could cause our
actual results to differ from our projected results, please see our
filings with the Securities and Exchange Commission, including our
Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K. Readers are cautioned not to place
undue reliance on forward-looking statements, which speak only as
of the date hereof. We undertake no obligation to publicly update
or revise any forward-looking statements after the date they are
made, whether as a result of new information, future events or
otherwise.
Investor contacts:
Jason Babbitt
Vice President, Treasurer
Group 1 Automotive, Inc.
jbabbitt@group1auto.com
Media contacts:
Pete DeLongchamps
Senior Vice President, Manufacturer Relations, Financial Services
and Public Affairs
Group 1 Automotive, Inc.
pdelongchamps@group1auto.com
or
Clint Woods
Pierpont Communications, Inc.
713-627-2223
cwoods@piercom.com
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SOURCE Group 1 Automotive, Inc.