Group 1 Auto (GPI) Investigating Damages Incurred from Hurricane Isaac
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Financial Fact:
PROVISION FOR INCOME TAXES: -20.32M
Today's EPS Names:
EDXC, BICX, FBPI, More
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Group 1 Automotive, Inc. (NYSE: GPI), announced it is assessing damage at 12 of its Gulf Coast dealerships in the aftermath of Hurricane Isaac.
"Group 1's primary concern is to assist its employees in the areas affected by Hurricane Isaac," said Earl J. Hesterberg, Group 1's president and chief executive officer. "We are also working to quickly assess and repair the damage at our dealerships in order to restore full operations for the local residents."
Preliminary assessments indicate minor damage to some facilities and inventory due to the heavy rain and winds. There was a loss of business due to store closures, evacuations, the inability for consumers to obtain personal vehicle insurance, and loss of power in the surrounding areas.
The company is insured and estimates it will incur a $250,000 pre-tax deductible charge for the facilities' damages, as well as incur some small losses, estimated at less than $100,000 for inventory damage at the impacted locations in the third quarter.
Group 1's four New Orleans dealerships were closed for six days, including part of the Labor Day weekend, while the remaining eight dealerships in the Gulfport, Miss., Mobile, Ala., and Florida Panhandle areas were closed for four-to-six days. None of the 12 Gulf Coast stores have significant damage. All of the affected dealerships are open for business, but until the surrounding areas have had power restored and the roads are cleared, customer access to the dealerships will continue to be impacted.
The 12 Gulf Coast dealerships are composed of primarily mid-line import franchises. On a combined basis, these dealerships represented 6.3 percent of Group 1's total revenues in the second quarter ending June 30, 2012.
"Group 1's primary concern is to assist its employees in the areas affected by Hurricane Isaac," said Earl J. Hesterberg, Group 1's president and chief executive officer. "We are also working to quickly assess and repair the damage at our dealerships in order to restore full operations for the local residents."
Preliminary assessments indicate minor damage to some facilities and inventory due to the heavy rain and winds. There was a loss of business due to store closures, evacuations, the inability for consumers to obtain personal vehicle insurance, and loss of power in the surrounding areas.
The company is insured and estimates it will incur a $250,000 pre-tax deductible charge for the facilities' damages, as well as incur some small losses, estimated at less than $100,000 for inventory damage at the impacted locations in the third quarter.
Group 1's four New Orleans dealerships were closed for six days, including part of the Labor Day weekend, while the remaining eight dealerships in the Gulfport, Miss., Mobile, Ala., and Florida Panhandle areas were closed for four-to-six days. None of the 12 Gulf Coast stores have significant damage. All of the affected dealerships are open for business, but until the surrounding areas have had power restored and the roads are cleared, customer access to the dealerships will continue to be impacted.
The 12 Gulf Coast dealerships are composed of primarily mid-line import franchises. On a combined basis, these dealerships represented 6.3 percent of Group 1's total revenues in the second quarter ending June 30, 2012.
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