Company: GPI
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0001031203-25-000061
Chunk: 129

Company: GROUP 1 AUTOMOTIVE INC
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 2
Chunk 129
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 Activities — Nine Months Ended September 30, 2025 Compared to 2024

For the Current Year, net cash provided by operating activities increased by $191.6 million, as compared to the Prior Year. On an adjusted basis for the same period, adjusted net cash provided by operating activities increased by $44.8 million. The increase on an adjusted basis was primarily driven by a $335.2 million decrease in inventories and asset impairment charges of $129.1 million, partially offset by a $121.7 million decrease in net income and $305.5 million decrease in floorplan notes payable - manufacturer affiliates.

Refer to Note 4. Intangible Franchise Rights and Goodwill within our Notes to Condensed Consolidated Financial Statements for further discussion of the asset impairment charges. 

Sources and Uses of Liquidity from Investing Activities — Nine Months Ended September 30, 2025 Compared to 2024

For the Current Year, net cash used in investing activities decreased by $550.2 million, as compared to the Prior Year. On an adjusted basis for the same period, adjusted net cash used in investing activities decreased by $564.8 million, primarily due to a $707.1 million decrease in acquisition activity and a $30.2 million decrease in escrow payments for acquisitions, partially offset by a $123.4 million decrease in proceeds from the disposition of franchises and property and equipment and a $39.6 million increase in purchases of property and equipment, including real estate. 

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Capital Expenditures 

Our capital expenditures include costs to extend the useful lives of current dealership facilities, as well as to start or expand operations. In general, expenditures relating to the construction or expansion of dealership facilities are driven by dealership acquisition activity, new franchises being granted to us by a manufacturer, significant growth in sales at an existing facility, relocation opportunities or manufacturer imaging programs. We critically evaluate all planned future capital spending, working closely with our manufacturer partners to maximize the return on our investments.

For the Current Year, $192.2 million was used to purchase property and equipment.

Sources and Uses of Liquidity from Financing Activities — Nine Months Ended September 30, 2025 Compared to 2024

For the Current Year, net cash provided by financing activities decreased by $756.5 million, as compared to the Prior Year. On an adjusted basis for the same period, adjusted net cash provided by financing activities decreased by $624.3 million. The decrease in net cash provided by financing activities on