Company: GPI
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0001031203-25-000061
Chunk: 128

Company: GROUP 1 AUTOMOTIVE INC
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 2
Chunk 128
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 unaffiliated with our manufacturer partners, within Cash Flows from Financing Activities in the Condensed Consolidated Statements of Cash Flows. Refer to Note 11. Floorplan Notes Payable within our Notes to Condensed Consolidated Financial Statements for additional discussion of our Revolving Credit Facility.

However, we believe that all floorplan financing of inventory purchases in the normal course of business should correspond with the related inventory activity and be classified as an operating activity. As a result, we use the non-GAAP measure “Adjusted net cash provided by/used in operating activities” and “Adjusted net cash provided by/used in financing activities” to further evaluate our cash flows. We believe that this classification eliminates excess volatility in our operating cash flows prepared in accordance with U.S. GAAP. In addition, floorplan financing associated with dealership acquisitions and dispositions are classified as investing activities on an adjusted basis to eliminate excess volatility in our operating cash flows prepared in accordance with U.S. GAAP.

The following table reconciles cash flows on a U.S. GAAP basis to the corresponding adjusted amounts (in millions): Nine Months Ended September 30,20252024CASH FLOWS FROM OPERATING ACTIVITIES:Net cash provided by operating activities:$565.3 $373.7 Change in Floorplan notes payable — credit facilities and other, excluding floorplan offset and net acquisitions and dispositions(63.4)120.0 Change in Floorplan notes payable — manufacturer affiliates associated with net acquisitions and dispositions and floorplan offset activity(2.0)(38.5)Adjusted net cash provided by operating activities$500.0 $455.3 CASH FLOWS FROM INVESTING ACTIVITIES:Net cash used in investing activities:$(659.1)$(1,209.3)Change in cash paid for acquisitions, associated with Floorplan notes payable51.2 50.3 Change in proceeds from disposition of franchises, property and equipment, associated with Floorplan notes payable(18.2)(31.9)Adjusted net cash used in investing activities$(626.1)$(1,190.9)CASH FLOWS FROM FINANCING ACTIVITIES:Net cash provided by financing activities:$84.5 $840.9 Change in Floorplan notes payable, excluding floorplan offset32.3 (99.9)Adjusted net cash provided by financing activities$116.7 $741.0 

Sources and Uses of Liquidity from Operating