Group 1 Automotive Inc., an international, Fortune 500 automotive retailer, reported 2020 second quarter net income of $30.2 million, diluted earnings per common share of $1.63, adjusted net income (a non-GAAP measure) of $69.6 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $3.77.  The company’s 2020 second quarter total revenue was $2.1 billion.

Second quarter 2020 adjusted net income and diluted earnings per share excluded a net after-tax adjustment of $39.4 million, or $2.14 per share, primarily related to the following: non-cash asset impairments of $20.6 million, or $1.11 per share; out-of-period adjustment to accelerate stock-based compensation expense for retirement of eligible employees of $9.7 million, or $0.53 per share; loss on debt extinguishment of $8.1 million, or $0.44 per share; and U.K. severance costs of $1.0 million, or $0.05 per share. Second quarter 2019 adjusted net income and diluted earnings per share excluded approximately $3.5 million net after-tax adjustments, or $0.19 per common share. These adjustments consist primarily of $3.0 million related to catastrophic weather events, or $0.16 per common share; and non-cash asset impairments of $0.5 million, or $0.03 per common share.  Reconciliations of non-GAAP financial measures are included in the attached financial tables. Certain disclosures may not compute due to rounding.

“Rapid and deep cost cuts, combined with a quicker-than-expected U.S. auto market recovery, enabled us to achieve very strong operating results in the second quarter,” said Earl Hesterberg, Group 1’s president and chief executive officer. “Our U.S. and U.K. businesses are operating at their highest efficiency levels ever and we expect this to carry forward.”

Penske Automotive Group Inc. announced second quarter and six-month 2020 results. For the three months ended June 30, 2020, the company reported income from continuing operations attributable to common shareholders of $45.0 million, or $0.56 per share, compared to $117.7 million, or $1.42 per share in the prior year. Foreign exchange had no impact on earnings per share. Revenue was $3.7 billion compared to $5.8 billion in the same period last year.

Second quarter performance was highlighted by the company’s diversification, with retail commercial trucks and Penske Transportation Solutions offsetting the challenging automotive retail environment early in the second quarter. In April and May, many of its U.S. and Germany dealerships were impacted by shelter-in-place orders while operations in Italy, Spain, and the U.K. were closed. As a result, same-store new and used automotive retail unit sales declined 71 percent in April and 50 percent in May when compared to the same month last year. In June, as operations began to reopen, same-store new and used automotive retail unit sales decreased 1 percent.

“The operating environment in the second quarter was one of the most challenging in memory,” Chairman Roger Penske said. “Since the COVID-19 pandemic began impacting operations, our teams took action to protect the safety of employees and customers, control costs, manage vehicle inventory, maximize gross profit and preserve liquidity. Through these actions, our business experienced sequential improvement from month to month in units retailed, service/parts gross profit and overall profitability.”

Penske continued, “Starting in late March, we furloughed approximately 15,000 employees, or 57 percent of the workforce. At the end of June approximately 14 percent of our employees remained on furlough. Additionally, we have reduced our workforce by approximately 8 percent as of June 30.”

For the six months ended June 30, 2020, the company reported income from continuing operations attributable to common shareholders of $96.6 million, or $1.20 per share, compared to $217.8 million, or $2.60 per share in the prior year.

Dealer Specialties announced it has teamed with Experian to make C.A.R.Score reports available within Experian’s AutoCheck vehicle history reports. This new relationship is an added benefit to mutual clients as it gives dealers the opportunity to show C.A.R.Score vehicle condition reports in the VHR, allowing consumers to make their next car purchase decision with confidence.

C.A.R.Score is an all-new, consumer-facing vehicle condition report that displays the exterior and interior condition of the vehicle, including instrument and control panels, mirrors, upholstery, even the scent of the vehicle. These interactive condition reports show specific details that car shoppers are looking for, yet, until now, were not available on vehicle history reports. 

Dealer Specialties vehicle inspectors perform a full, cosmetic vehicle evaluation, which includes photographs of any visual damage. After inspection is completed, the car is rated from 1 to 5 Stars, giving consumers a clear understanding of the vehicle’s current condition.

C.A.R.Score reports will be displayed under the ‘Inspection History Check’ and ‘Detailed Vehicle History’ sections of Experian’s AutoCheck vehicle history report. Each section provides inspection data, location, and a link to the full C.A.R.Score report.

Sonic Automotive reported an “all-time record monthly profit in June” as part of its financial results for the second quarter ended June 30, 2020.

Earnings per diluted share from continuing operations of $0.71 for the second quarter of 2020, compared to $0.62 for the second quarter of 2019 (included in the results for the second quarter of 2020 is a non-recurring tax benefit of $3.2 million, or $0.07 per share).

While new vehicle unit sales volume was down 25 percent, new vehicle gross profit per unit was up 9 percent, to $2,218.

Total Sonic had consolidated second quarter 2020 revenues of $2.1 billion and gross profit of $307.4 million. EchoPark second quarter 2020 revenues of $315.3 million were up 8 percent from the second quarter of 2019.

“Our second quarter results reflect not only a dramatic operating improvement since the onset of COVID-19, but also an all-time record monthly profit in June,” said David Smith, Sonic’s and EchoPark’s chief executive officer. “The record-setting momentum we saw during the month of June has continued throughout July to date.”

As of June 30, 2020, Sonic’s total available liquidity increased to $455.1 million, up from $311.5 million as of March 31, 2020. Sonic’s liquidity as of June 30, 2020 consists of $115.7 million of cash on hand, $83.9 million of floor plan deposit balances and $255.5 million of availability under our credit facilities. From a debt perspective, Sonic has no significant near-term debt maturities.

Sonic’s Board of Directors approved a quarterly cash dividend of $0.10 per share payable on Oct. 15, 2020 to all stockholders of record on September 15, 2020.

Real gross domestic product (GDP) decreased 9.5 percent in the second quarter, a historic annual rate of 32.9 percent, according to the “advance” estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP decreased 5.0 percent.

According to the BEA, the GDP estimate released July 30 is based on source data that are incomplete or subject to further revision by the source agency. The “second” estimate for the second quarter, based on more complete data, will be released on Aug. 27.

The decline in second quarter GDP reflected the response to COVID-19, as “stay-at-home” orders issued in March and April were partially lifted in some areas of the country in May and June, and government pandemic assistance payments were distributed to households and businesses. This led to rapid shifts in activity, as businesses and schools continued remote work and consumers and businesses canceled, restricted, or redirected their spending. The full economic effects of the COVID-19 pandemic cannot be quantified in the GDP estimate for the second quarter of 2020 because the impacts are generally embedded in source data and cannot be separately identified.

The decrease in private inventory investment primarily reflected a decrease in retail, led by motor vehicle dealers.

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