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Group 1 Automotive (GPI)

Participants
Peter DeLongchamps SVP, Manufacturer Relations, Financial Services and Public Affairs
Earl Hesterberg Chief Executive Officer
Daryl Kenningham President, U.S. and Brazilian Operations
Daniel McHenry Chief Financial Officer
Michael Ward The Benchmark Company
John Murphy Bank of America
Richard Nelson Stephens Inc.
David Whiston Morningstar, Inc.
Rajat Gupta JPMorgan Chase & Co.
Call transcript
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Operator

Good morning, ladies and gentlemen, and welcome to Group 1 Automotive's 2021 Third Quarter Financial Results Conference Call. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please also be advised that today's conference call is being recorded. At this time, I'd like to turn the conference call over to Mr. Pete DeLongchamps, Group 1's Senior Vice President of Manufacturer Relations, Financial Services and Public Affairs. Mr. ahead, go Please DeLongchamps.

Peter DeLongchamps

will and X's this today's slide morning related been results include everyone, for this release purposes comparison presentation The we reconciliations have we adjusted the issued and to to to welcome morning, on call. call Group to posted earnings that refer website. Good a related

mentioned call, we I'd Private of XXXX. like Act measures. about made the and statements non-GAAP of begin, Automotive to financial remarks Group conference to of Reform Before are that use for safe Except during by management information forward-looking the historical forward-looking provisions Litigation harbor statements are make some the the of X Securities brief pursuant statements

available global other virus, XX resulting related the on Copies the prices demand public economy both past months. the Commission vehicles, the cause SEC from materially used supply actual in conditions to increased to, new are the future and and company's periods the risks the and of statements not forecasted but pricing, from shortages, in volume, Securities and company's inventory markets are due for with and and due to risks described Forward-looking services. and the known may involve results differ the developments both impacts filings the to Those associated adverse Those component as with of limited and unknown reduced well are levels to risks results. these risks Exchange manufacturing over include, related company. as production COVID-XX health demand in which and customer filings uncertainties, and

may defined on as be discussed call. In addition, this certain non-GAAP measures, under SEC financial rules,

Chief website. of non-GAAP Financial the Hesterberg, Daryl with the applicable over McHenry, Chief the hand Senior Participating Earl company Officer. measures and As and its call Executive me GAAP Officer; and comparable Daniel I'll provides rules, to required of to measures on Kenningham, our today call: any on SEC the such Brazilian reconciliations Vice and most President Operations; directly now President President our Earl. our U.S. financial by

Earl Hesterberg

and equates Pete, the that of per you, the earnings quarter of This generated quarter, of million. to I'm of increase to diluted report Thank share, increase pleased share and adjusted over adjusted year, over morning, third XXX% net Group $XXX $X.XX XX% per XXXX. the of an for good income pre-pandemic X an everyone. prior

net Prime in impressive able costs of legal on for potentially Our consists offset adjusted consumer results change largely after we to and These approximately transaction, unit after-tax no the well in cost results as the non-core were vehicle during amount demand. out, loss vehicles sales exclude strong $X the the that dynamic of were of growth a sell continued result related than strong control. offset This almost extremely to a by material fourth declines, margins much units Consumer partially demand continue throughout to items profit This after acquisition quarter. should OEM heading quarter. And continue immediately further and delivery. most extinguishment, primarily into net quarter, remains recognized totaling favorable million and assuming as more sales losses. debt settlements fourth

new As have XX, representing vehicle XX-day of a U.S. we supply. September units stock, X,XXX inventory in

supply. after-sales results XX-day recovery very quarter third business. stronger element of shortly. about is in much inventory encouraging used at the units very inventory Daryl more will situation A speak our XX,XXX strong Our and a is continued our

in a increase moment. XX.X% revenues saw versus U.S. markets Daryl Again, year. the U.S. detail in on our after-sales prior will more Our provide results

UK But constrained. severely is vehicles demand consumer new As vehicle with in U.S., is for the availability strong. extremely the

margins Strong to we the into of order that we're UK with next And report an due second to shortages. bank our major extending year. quarterly profit offset brands quarter sales more proud to pandemic able UK have We quarter future. past were inventory the to than declines most We all-time third vehicle will Brexit help an demand and both generated the the drive in years of demand the record foreseeable several XXXX. due built of believe over strong pent-up into

acknowledge work to cost want I Finally, have all the do regions of our to control. on impressive continued

a in The XX.X%. profit U.S. and at Our came a percentage was adjusted as record Brazil was XX.X%, SG&A gross UK XX.X%. of

margins, To turn transitory that the our of provide impact to productivity continue on levels there certainly over call vehicle U.S. very second inventories Daryl is remain color While and vehicle Brazil performances, quarter some normalized. witness to we due Kenningham. a of level to will high now after I'll

Daryl Kenningham

Earl. you, Thank

finished As U.S. supply. levels a inventory the new XX-day mentioned, at and units vehicle quarter X,XXX Earl

Our receipts of September were the inventory year at X,XXX approximately the lowest units.

on receive over OEM increase to same trough. November, the at communications, some quarter. production do be we to expect expect point roughly first We in based We But October we current the XXXX. in have and will level believe much visibility into which the levels yet not

Our adjust team decline. required. supply vehicle operations throughout And did our to as the inventory quarter as we increasing a great will margins continues job continue to

used of sales Our third Same retail the vehicle improved unit by quarter XXXX. Store versus XX%

vehicle which from a purchases Our increased did gross team a directly job PRUs, result also great increasing owners. is profit of

supply public which yet sourcing has strategy, continue vehicle hold us judicious while to constant very auctions. with a aggressive, to our largely inventory relatively We be allowed used avoiding

profit including our channels used-only a As us advantage performance. once to over auctions. sourcing dealer, lease numerous closed due sales distinct inventory, was we returns, afforded a most and the OEM service after franchise drives, operators again a our have encouraging driver The

the continues factor was discipline. The despite with XXXX. our dealership to headwinds of reverse gross foresee cost the of warranty major driving to third believe X%, profit grow over half growth collision, year both very time. final same-store in continuing us strong performance We after dealership allowed profit we profits quarter continued after up of by in a to to will which compared gross first and outstanding the sales following ramp near-term. ramp-up continued XX% This sales pay customer same-store Our

AcceleRide XX% Our be XX.X% third gross XXXX, quarter quarter the adjusted down pre-pandemic the of due in quarter I would part percentage XXXX. the another XX.X%, update permanent. from AcceleRide, improvement which in quarterly from gains, third believe we of was to to a digital down will of SG&A our of is third as of to and productivity incoming vehicles In Material profit is like is provide over and in-transit XX% third our AcceleRide difference we platform. on the last a critical X,XXX retailing transactions pre-selling little increase and customers year. to finalize to our AcceleRide, for have units digitally. a And proving new to we maker again be deposits quarter, vehicles inventory sold since customers. allows take very business

of value an expanding In third Group X. exceptional AcceleRide to our footprint. in-transit X license that uploaded In gives nearly Of proven the to which way has Group AcceleRide who online avenue customers superior last inventory, addition the the clearly experience XX% to a be grow quarter us grow ability continue also satisfaction, vehicles. and new provides quarter, to We of to AcceleRide great application a generate omni-channel another proof in our overall incrementally. driver's through reach XX% our control the completing buyers Customers credit platform. AcceleRide to at volumes placed customer's were of orders orders insurance. had used incremental completed XX% and additional or online to advantages XX% that of the process the is to giving believe their sourcing giving critical all well. any is An as of buying car uploaded

up our acquisitions. of through us the feature That's A digital digitally of AcceleRide or is pay AcceleRide. X,XXX through nearly used we either customers purchased to During trades advantage through payment the ability our quarter, in nearly the from customers vehicles XX% for Zelle, individual took X,XXX total second through quarter. customers from sequentially out X,XXX differentiator

our have delivery far About in third miles, In Texas fees AcceleRide. complete distance look dealerships, September, increases transparency adoption customers we activated dealerships more In to X% integrated and view, addition California integrated delivery AcceleRide encouraging. in half very everyone with will front, delivery We delivery with traditional our in are results the sold in our utilized confirming sales quarter digitizing creates In And professionalism. acquisitions. average final the in experience newly in and are AcceleRide soon. at expand everyday our soon. of AcceleRide U.S. XX% XXX footprint increased dealerships upcoming dealership reach dealership about and of The so acquired demonstrating to AcceleRide for will fees remote process. our the preliminary selling, of the launching launch we extend at vehicle XX Northeast Prime showroom, customers in chose the to significantly saves ability steps. time, up the forward our is further and the

XXXX. of start to dealerships in expect AcceleRide January rolling out in those We

third quickly a XX% units versus Turning sold quarter to XXXX. despite in Brazil, decline of nearly industry the

once thinning the again growing resulting history. in a aggressively margins fantastic cost across did region's quarter and all lowest structure, job the in SG&A of the team Our business lines

our at quarter record. For a the second teams an all-time quarterly Brazilian in profit row,

liquidity rebound CFO, well sheet sales the We of our provide I Daniel? continue a the turn to and now benefit to call coming balance out to review. from pandemic. be positioned to a will Daniel over McHenry

Daniel McHenry

everyone. morning, and Daryl, you, Thank good

line, to our capacity expect As $XXX we This cash was additional to XX, X% Group, $XXX immediate which total fund bringing million. $XXX our previously an another issued to U.S. XXXX. existing to raised in and $XXX liquidity the hand, close total November. quarter-end, of acquisition offset notes syndicated $XXX in of to million cash help liquidity of accounts, our million to as also on million. was on of announced Subsequent we September Prime to acquisition $XXX had add-on bonds Automotive debt our bringing we invested borrowing of floorplan million There million

million the generated $XXX fund operating cash quarter free deal of $XX capital brings million our provide and We cash also flow is year-to-date cash flow This Prime million of our in expenditure. after free acquisition raising third backing flexibility. future $XXX majority with to of on access flow in debt to the liquidity allowed cash out on and $XXX to million We us million, $XXX plan which fund the mortgage of approximately hand. September help adjusted

Our by cash which On syndicated facility of considers our was all basis a credit debt U.S. rent-adjusted X.X the leverage end ratio, net September. hand. as U.S. defined on to times at reduced

times leverage XX. at was X.X Our September

we deployment. expect do Prime ratio considering leaving leverage for further As to adjusted not the when rent acquisition, X our plenty flexibility previously of exceed times, pending announced capital

quarterly last due $X.X prior year's or expense, holdings. interest decreased bond of Finally, related expense floorplan to lower to XX% million $X.X million interest a prior was year, primarily $X.X from from inventory our to refinancing. of million vehicle Non-floorplan XX% due or decrease debt interest year,

posted presentation please will on our our schedules to release, additional to condition, over refer well Earl. back For the regarding financial news the attached call of the the additional to, investor I as turn website. detail now as information

Earl Hesterberg

Thank announced in to November. you, purchase close And two California. Daniel. Related Group Total previously the our England of dealership billion. expect one Worth the closed XXXX October in New and development revenues Dallas-Fort dealerships will We in efforts, our acquired in Prime Daniel metroplex our equal we mentioned, to Once the as of corporate acquisitions $X.X

Our I will balance we the And question-and-answer to seek will position begin generation, our call continue to operator maximize turn concludes deployment. to for to flow will over Operator? leverage This into session. the prepared cash allow as XXXX. for remarks. we the ways continue our sheet, head shareholders to now value further capital

Operator

question [Operator Benchmark. session. first And, ahead Ward we'll question-and-answer and with today's with ladies question. Instructions] And go from your from our gentlemen, that Please comes begin Mike

Michael Ward

mistaken, from? everyone. XX.X% Thanks. Up that that more parts you seeing morning, double color a could Same Store, Where U.S. about provide the could the Is bit strength? are particular. not something rest that I Where coming is that's the if if service of and group. the Good continue? I'm wonder in on you

Daryl Kenningham

XX% the Mike, several We strength across in Nearly - seeing are our around our to board. customers an this and that days. is workweek to place that our our want philosophy scheduling our tried able it's schedule X-day customer convenient to when for we with Daryl appointment it the of be these them. customers for Kenningham. our online starts shops availability appointments in We're had years, we've scheduling

ever than and So continue we reaching staff to sales. And up believe more many we us of them are after before.

that's We continuing. see So it we what see.

Michael Ward

from of Is scheduling, kind was So the that it about online up was, where XX%? it running? that's XX%

Daryl Kenningham

Yes.

Michael Ward

And still being of lack and weighed of because supplies. down now, it's guessing, I'm the trade-ins

right? the of some possibly see type into correct? back holding that that it's we same So store is the on vehicle could increases double-digit sales, through these base is used the XXXX So year, continuing and

Daryl Kenningham

good really the tell but we double about can't it'd you digit, I feel after be sales business.

Michael Ward

Okay.

mentioned thing, in the order second the UK, The you bank.

going XXXX. the from? quarter September you there assume the into order coming like second think, that some this? a deferment was magnitude, where of Is of particular. said of I where registrations it's I it, seeing of In lot the of in of Earl, Or are is was out deliveries it you in

Earl Hesterberg

Most year. Yeah. into our new a car of Mike. next brands, we Absolutely, in when bank that an are sell quarter order second the are going

sales yeah, dictated by holding empty. almost deliveries And you what dealers factory So, don't produce. the on the now of stock new vehicles are as entirely Because basically vehicle site. know, can centers are UK

So the factory. from whatever the flow it's is

how they them. so it's the and And is great, bank quick can just demand order is great build

Michael Ward

seeing, units you're in about particularly dealers, Yeah, pickup having U.S. orders direct they trucks customers, from that Texas? XXX,XXX for in with Is from I think yesterday, what over the on from Ford's talked call

Earl Hesterberg

I'll I correct. let but believe that, answer that's directionally Daryl

Daryl Kenningham

Yeah, Mike. that's what we're Exactly. seeing,

Michael Ward

dealer. to time a Thank good you. be A

Daryl Kenningham

Yes, it is.

Operator

question Murphy next America. Please John from ahead comes question. Bank of your from with Our go

John Murphy

flow high probably in is Good going are side, about tight and vehicle you this had inventory well used go market. used too have question the on but to come than sort they maybe you that will looking going mean, that year, there? the even profit volume XXXX maximize through forward? through the to the side. directly vehicle morning, to do of guys. I just other new they're to of similar not do into they at will on you're given used certainly trade-ins Mike how to participants access next here think versus to How kind GPUs I you're year, I about really XXXX. on think to the more or balancing these controllable a you think down, way of just view the into And there might kind that business that And gross total what's

Daryl Kenningham

of footprint, is volume quite us still we there do. bit a Well, for feel like our in to own opportunity

new included We also great deal fewer our there When from obvious. big trade-ins, of sales days, to cars customers means like from our look you is advantage a are drives. have, John, these car aftersales service last our opportunities and which from we growing is that quarter, crazy, sourced put at business to even emphasis, though of more buy of which is The being sourcing drives. was coming XX% individuals service some

So see opportunity year ago, to from continue that's and a double there. we

we new lid a see So see cars with don't to other used are we're job like on pretty feel the avenues and we that on cars, because doing good we there that. source

John Murphy

do think Daryl, you're that it gross this do when gross I mean, range, trade you that get if gross about to around long. off? gross about you how the though, do in quarter? the you $X,XXX versus the thinking I and you Are way? $XX,XXX improvement this want I Or a it assume dropped to in think XX% about was would think I mean, balancing travel you volume volume, And, all-day is, that might it the X% you

Earl Hesterberg

this is grosses. is we John, at look Yeah, it way the the The market Earl. dictates

moved the inventory what We our month, dictates sourcing, we days, The is. key every have Daryl to days, vehicle our whether it have always XX grosses. is market XX volume The whatever which discussed. is used

bit little never days. quicker. like XX much And obviously, than we had XX more or them, But so, move them a we're moving always still we

sale. properly. sell additional And additional you so, for an now, if more you you'll acquire want get you to one acquire have to vehicles And every them retail

John Murphy

of But incredibly that's seems there these Pete not on in kind the of of to F&I. sort promises there upside helpful. you're limits this continuous opportunity. reaching is And lastly kind that more and be just F&I, asymptotic Yeah, then always

it level, I there but I would as And year, fade. going that So, much you XXXX you don't beyond? and selling currently? risk the this and might risk up, room maybe I how mean, the penetration volumes do back next think are and and in opportunity And think come ultimately mean, rates do fade how price could lower is forward? maybe in, to start F&I? points think in for be be What you about at rates there

Daryl Kenningham

take have couldn't more the But our pleased we I we when biggest business, John, penetration at the clearly be you think risk a rates. interest current look rates. is with

contracts, Let's rates take penetration a with look have pleased from at vehicle those standpoint. all maintenance, we service have compliance We're increased. very on spread that F&I the a

little job So, may think, we're upside, with there And we our but be to, do more continue very are a where a terrific comfortable I we bit today. teams.

Earl Hesterberg

is this John, Yeah, Earl.

that is, now business have the model change two so terms last comfortable is The F&I very penetrations either or the not other in I'd retailing retailing, model of that online we learned our when online over traditional basically same we're us materially such, for the make the holds year point fee that's and have.

John Murphy

I'm think things is dealerships. that mean, with of mentioned time you necessarily develop consumer dovetails within maybe sorry, an it your does own online kind consumer dealerships, do create AcceleRide is will easier retail, complexity? I'm tandem? website going sneaking that Okay. So you your compete disrupt overlays a and with for branded of into Earl, automakers on doesn't is with their over sort in as work your that I what focus all, Or that, your a increased at you? to actually but hearing make mean, creating efforts? through from Or How one how into last the you're or digital that economics, you one, online disintermediate funnels right? interaction I

Daryl Kenningham

evolve it a on of steps work We've further again. we them an solution. digital in for for this their not solutions every their development what these generally close as determined they see are and meet And issue, that process, realize steps OEMs compliance that take and we the certain are the a is rules. I as I with OEM, is incorporates John, compete see because on the you'll year discussions But brand, the are the more OEM Daryl with with had ahead on to see. than there two with customers and outstanding this what of letting well. all over AcceleRide buying solution in that think, to are the dealers partnership almost And, that OEMs much We OEMs very It's long tools. that's next as different their of us. own OEMs, or

John Murphy

much, you right. Great. All guys. Thank very

Operator

comes Rick Please from from question. question with next Stephens. Our ahead Nelson go your

Richard Nelson

morning. Earl, quarter. speak Good another environment, Thanks. acquisition curious, could there's on those. you're big nice Congrats been if how that a one and slew the how pair multiples Prime deals, of ask saying. much more is to about maybe appetite, you I'm your being you of to

Earl Hesterberg

Yeah, to deals out sure, there motivates same it that seems prices still the are try more get sellers go, many Rick. there, price. other to the Yeah, the higher

So, activity. many the a But, the to I from there's view. and point point think, opportunistically, lot of because we of only of action. financial case, to these view out In to we'll a OEM so that continue deals, continue have we're think, they'll one, work look focused our wherewithal to take I be closing of and will on continue big valuation

a Yeah, and can their I for lot we works still tax, do the the of they're us. moment, if Prime. So, will excited businesses accretive, recent more And only potential I some advantage I think, very don't changes of them about continue take know see and trying to will evaluation people when a pricing. for sell we're the But slow of next at down. year it tax it while.

can us. and we think provide more dust the in do probably when we on So close clarity it, settles it'll for what we

Richard Nelson

that and the pro forma now Great, to leverage Prime in and thanks. the curious about that for how have I'm relative your goals? looks come deals

Daniel McHenry

forma, X in as terms we our we've expect don't So Rick, of to the increase above said, pro leverage times.

the So see as accretive day X. from being acquisition Prime we

Richard Nelson

on AcceleRide. Great. And just follow-up a

a or good do the exactly an And overall necessarily that how transaction order car AcceleRide how enters somebody profitability that and buys online? compares find F&I not places is is really down somebody the in-store online AcceleRide to attachment mentioned an road, you that You sale?

Daryl Kenningham

AcceleRide interact an Rick, them define PRUs F&I, fairly is that comparable and don't well between AcceleRide elements many somebody as Daryl. as in as count as sales, this we We And frontend AcceleRide comfortable starts a customers there's AcceleRide on AcceleRide a an sales. sales. or covered Attachment with quote purchases that I rates car. terrestrial and think, well we

Richard Nelson

buyers, And pickup? are an credit or customer more AcceleRide pay maybe delivery taking well yield or they in-store

Peter DeLongchamps

this we're is the There's no So, reasons before, talked as it we've dealership. a tool differentiation. within using one AcceleRide and about Rick, And really of as Pete. the

So, applications are there as AcceleRide we of the mentioned earlier, model. piece credit big

doing modular a So, going really because their application, and type application, customers dealership in so credit because it's it's own helping efficiency.

using our there's who's is AcceleRide, a customer credit up then, an at low the really has that's every credit And look tier, whether to opportunity the between that that set score. the they're you a high to when And we FICO tiers. regardless of not differentiate big get So a or now have score one way difference we of FICO things application. financing, think

Richard Nelson

the Pete. That's Great. Thanks, good guys, color, luck. and helpful, for

Earl Hesterberg

Thank you, Rick.

Operator

go from our Please question next your Morningstar. from And ahead with David Whiston question. comes

David Whiston

inflation consumers the high in or the to all high to such morning. point you that problem they're at now? a demand end in Good the be preferring continuing buy are I a may guess, XXXX, trends, first, stopping either concerned want Thanks. guys about vehicle not

Earl Hesterberg

costs business are be any thinks rate factor. like But no is a near-term. on lent, we've But And up banks to money This to I much that. Earl, been going go about it that that in car inflation massive we and chatting is anything call more financing with vehicles And inflation retail is one values, reining a joke, so transitory will everything, we're and be low the think hit in the sales interest or think much certainly it there's David. dictated the go there's of don't used that. and don't see with vehicle can doubt leasing. not believe car could which do this rates, don't interest of I on But affordability future. new foreseeable high by parade will support prices seeing the that a again but inflation used the I the up, cars prices. it, is I in

David Whiston

But to increase improves, XXXX, conversely, used ease help higher the pricings supply a supply and residual relative right? in lower chip though, should values if little vehicle

Earl Hesterberg

someday clearly the that normalizes supply occur. at when will Well,

We continue by surprised year. of to least by be And of see supply they it of at better duration quarter the shortage. executives suppliers getting our next top the the till third don't that told I

David Whiston

heard and are a that I've I'm Yeah, too. right battling say buying causing to going In bother instead? the now petrol UK, consumers people not I know to that car does shortages whatnot, buying electric or

Earl Hesterberg

it Well, hybrid starting That to there that's or is electric. the rapid That's push from more more to particularly into by fact. electric car a to fact, But in a taxation. UK, taxation, full driven is David. people a company be shift diesel seems

depression. a see mind, uncertainty And, very customer EV no demand prior the to in and retail there's compared to was robust. the used UK for it So double-digits much to delivery, in that market. But, primarily UK automobiles EV the the doesn't bear they in in call the adoption have what absolutely dynamic drivers. of truck is issue I think is shift. in X at enough probably demand Brexit new The vehicle put moment demand yeah, that a U.S. lorry there they we drivers, going into still we're call petrol the quicker the the X COVID UK to was difference higher times problem don't But

a demand the So lot of there's pent-up vehicle in UK.

David Whiston

- willing like, are a new going few desperate? a opposite, U.S., till the you think ahead a “Forget in they seeing a finally it's feel few improve] and vehicle to and people used wait change And I'm there people to go take is you relative or want months [things any ago, the maybe where Or months ago it, [ph]?” Okay. they now where were more to

Daryl Kenningham

quarter did generally we will David, some that switching for a but new a customers volume it's generally what this of they tell little bit you a a want in is makes, in of see. car. volumes the see some happening. a generally But trend, a wait see that's I is new Daryl. car CPO the huge somebody you We or Luxury of up bit car, that's probably bump our little want and can't

David Whiston

you. Okay. Thank

Operator

comes And with Gupta our question ahead from next Rajat question. your JPMorgan. go from Please

Rajat Gupta

in start you Great. curious Thanks the pretty add here? the to you the for in Thanks. from U.S., go off And have more maybe more more quarter particularly. higher here And here good solid for balance leverage much on the talked a I be Prime with question, adjusted, times we've the want X can taking execution in about how I very sheet questions. Congrats you buyback, maybe forward M&A? near-term willing the or will follow-up. allocation to close deal? on Just on go capital after leverage, a

Daniel McHenry

Yeah, sure.

to times to for or grow, leverage question. we the right such are up be go X.X deal, right see from capital we such and for and, we for acquisition to to happy grow would the I think company. of is course, continue the happy an what we we've as when over acquisition. X, that, opportunity, turn debt to said would always And that of would the I'll to part the Earl of get course, our on to earnings balance sheet, supplementary an allocation add the

Earl Hesterberg

be a near-term are market, the continually execute in we market further opportunities. share is M&A. the through But will in our But We shares repurchase that quarter, the repurchase some both. very good in major financial to share we there possibility undervalued. flexibility information. strongly material absent acquisition And any plenty opportunistically nonpublic because external weren't we Yeah, certainly of had third the market in we have we're believe - growth interested repo

Rajat Gupta

color. the comments productivity helpful just earlier. on that's follow-up And wanted Understood, to

lower ask assumption normalized We in U.S., be to there than some productivity for XXX strong or long-term the how given COVID? X, pre-COVID. us Group points changed, has the targets sector so to surprised general. just like continue earlier been the but productivity, strong not XXX overall you, Curious for given particularly, to in by basis post your You've far, has

context Just And and probably at has curious in has sooner adoption back to [ph] just once normal how also, productivity increased the that more in are [in also changed up if the or hardware that even accelerated in all. store GPUs? gone like, more hit better, personally] that's you're you targets your maybe store, of using making

Earl Hesterberg

by our they the month our that, We've increased our productivity no or a changed. salespeople versus viewpoints at efficient. assumption absolutely, of There of is least reason backwards XX% are to technicians, pre-COVID Well, changed. has with more more go operating XX And Same on absolutely units selling today. our XX. XX%, instead

yes, things probably But, and And to So, supports that. comment, Daryl want efficiency the go online contribute in never future. variety yeah, to intend that. there of It of lower being business Daryl? are back levels certainly we more to those that part productive. certainly is to will

Daryl Kenningham

great Earl, a covered tool to it. you AcceleRide is efficiency. drive

to and And add press that, some transaction more appraisals the ingrained shops, our X-day be workweek, see about, And continuing of our for we our more from with support productivity parts of the all in and scheduling, digitally. to future, and a and the numbers to productivity, customers in enables and we we insurance, that to all adds applications improvements. half uploading expect online using credit departments talked AcceleRide purchases, vehicle that and

Rajat Gupta

the before, see if point, longer we little unchanged? still Yeah, change to the willing that number bps want that are XXX wait improvement, XXX progress…? to given GPUs or you at to had this targets to a you is Or

Daniel McHenry

ongoing and versus normalized probably flat basis on is get on we standard more that it basis. it we XXXX But at where expectation the points will I GPUs an a think levels. more say XXX lower be the least U.S. or for basis the UK, for slightly would that rather that

Rajat Gupta

Understood. Thanks color and good luck. for all Super helpful. the

Earl Hesterberg

Thanks, Rajat.

Operator

conclude and floor that, over Hesterberg I'd to we'll to And, Earl turn any gentlemen, like ladies question-and-answer today's session. for remarks. the with back closing

Earl Hesterberg

Well, thanks you. you to call. our for on looking forward us today. to earnings everyone joining We're fourth quarter Thank updating

Operator

conclude presentation. for gentlemen, today's We today's And, that, ladies conference and call. do with attending thank you we'll

disconnect may You now your lines.