Group 1 Automotive Assessing Storm Damage In Oklahoma City and Houston
HOUSTON, May 1, 2013
HOUSTON, May 1, 2013 /PRNewswire/ -- Group 1 Automotive, Inc.(NYSE: GPI), an
international, Fortune 500 automotive retailer, today announced it is
assessing damage at its eight Oklahoma City, Okla., import and domestic
dealerships in the aftermath of an April 26 hailstorm and several Houston
locations impacted by hail and heavy rain on April 27.
Preliminary assessments indicate there is damage to some of the facilities in
Oklahoma City and about 3,200 new and used vehicles located at the eight
Oklahoma City stores and at various Houston locations. The company is insured
with large deductibles and currently estimates it will incur pretax charges
related to the deductibles in the range of $8.0 million to $10.0 million, or
approximately $0.20 to $0.25 per diluted common share, in the second quarter.
The affected dealerships in Oklahoma City are open for business with full
capacity in the parts, service and collision areas, but with limited sales
operations. All of the company's Houston dealerships are open with full
service and sales capacity.
The eight Oklahoma City dealerships are comprised of 12 franchises, including
Buick, GMC, Chevrolet, Chrysler, Dodge, Jeep, Ram, Nissan, Toyota, Honda and
Acura. On a combined basis, the eight dealerships represented 6.1 percent of
Group 1's total new vehicle unit sales in 2012. The company is working with
its manufacturer partners to replace the damaged inventory as quickly as
possible, and will source inventory from its other stores, but does not expect
inventories at these locations to be fully replenished until mid summer.
About Group 1 Automotive, Inc.
Group 1 owns and operates 143 automotive dealerships, 182 franchises, and 36
collision centers in the United States, the United Kingdom and Brazil that
offer 35 brands of automobiles. Through its dealerships, the company sells new
and used cars and light trucks; arranges related vehicle financing, service
and insurance contracts; provides automotive maintenance and repair services;
and sells vehicle parts.
Group 1 Automotive can be reached on the Internet at www.group1auto.com.
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, market position, pending and
potential future acquisitions 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, and (i) our ability to retain key personnel. 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
SEC, 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.
Kim Paper Canning
Manager, Investor Relations
Group 1 Automotive, Inc.
713-647-5741 | firstname.lastname@example.org
V.P. Financial Services and Manufacturer Relations
Group 1 Automotive, Inc.
713-647-5770 | email@example.com
Pierpont Communications, Inc.
713-627-2223 | firstname.lastname@example.org
SOURCE Group 1 Automotive, Inc.
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