Group 1 (GPI) Dsicloses Hail Damage to Oklahoma City Dealerships, Sees 7-10c/Share Charge in Q2
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Used vehicle retail sales: 702.62M
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Financial Fact:
Used vehicle retail sales: 702.62M
Today's EPS Names:
EDXC, BICX, FBPI, More
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Group 1 Automotive, Inc.(NYSE: GPI) today announced it is assessing damage at seven of its eight Oklahoma City, Okla., import and domestic dealerships in the aftermath of a May 29 hail storm.
Preliminary assessments indicate there is damage to some of the facilities and most of the new and used vehicle inventory located at the seven stores. The company is insured with large deductibles and currently estimates it will incur after-tax charges related to the deductibles in the range of $1.8 million to $2.3 million, or approximately $0.07 to $0.10 per common share, in the second quarter.
Group 1's three Tulsa-area and one of its Oklahoma City dealerships were not impacted by the storm and continue to operate normally. The seven affected dealerships, which are located in an automall, are open for business with full capacity in the parts, service and collision areas, but with limited sales operations.
The seven Oklahoma City dealerships are composed of 10 franchises, including Buick, GMC, Chevrolet, Chrysler, Dodge, Jeep, Nissan, Toyota, Honda and Acura. On a combined basis, the seven dealerships represented 5.8 percent of Group 1's total new vehicle unit sales in 2011. 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 late summer.
Group 1 noted that it would provide an update if one is warranted.
Preliminary assessments indicate there is damage to some of the facilities and most of the new and used vehicle inventory located at the seven stores. The company is insured with large deductibles and currently estimates it will incur after-tax charges related to the deductibles in the range of $1.8 million to $2.3 million, or approximately $0.07 to $0.10 per common share, in the second quarter.
Group 1's three Tulsa-area and one of its Oklahoma City dealerships were not impacted by the storm and continue to operate normally. The seven affected dealerships, which are located in an automall, are open for business with full capacity in the parts, service and collision areas, but with limited sales operations.
The seven Oklahoma City dealerships are composed of 10 franchises, including Buick, GMC, Chevrolet, Chrysler, Dodge, Jeep, Nissan, Toyota, Honda and Acura. On a combined basis, the seven dealerships represented 5.8 percent of Group 1's total new vehicle unit sales in 2011. 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 late summer.
Group 1 noted that it would provide an update if one is warranted.
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