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Group 1 Automotive, Inc. Q2 2010 Earnings Call Transcript

In addition, certain non-GAAP financial measures as defined under SEC rules may be discussed on this call. As required by applicable SEC rules, the company provides reconciliations of any such non-GAAP financial measures to the most directly comparable GAAP measures on its website.

Participating today on today's call is Earl Hesterberg, our President and Chief Executive Officer; John Rickel, Senior Vice President and Chief Financial Officer; and Lance Parker, Vice President and Corporate Controller; and myself.

I would now hand the call over to Earl. Earl?

Earl Hesterberg

Thank you Pete and good morning everyone. Before I turn the call over to John Rickel so he can provide details of our second quarter financial results, I'll review our operating highlights.

During the second quarter, as reported by J.D. Power, year-over-year industry new vehicle retail sales increase 10%. We're pleased to report this morning that we far exceeded those results with our same-store new vehicle unit sales increased more than 23% and our new vehicle revenue was up 26.5% from the second quarter of 2009.

We saw strength across the vast majority of markets and brands. In addition to the strong increase in new vehicle sales, we had even better results in our used retail sales where our same-store unit sales increased 24.2% from the same period a year ago and our revenue was up 31.7%. We indicated on our first quarter call that after 18 months of restructuring we were shifting gears on our plan for 2010 with focused on growing our company again.

Our results during the first six months of this year indicates that we have been successful in that effort. In addition to the strong growth in new and used vehicle sales this quarter, we also delivered the following on a same-store basis. 15% growth in gross profit from wholesale used vehicle sales, reported higher finance and insurance growth profit per retail unit and saw F&I revenue increase 31.4%.

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