HOUSTON -

The good news for Group 1 Automotive’s used-vehicle department: The dealer group turned 12.1 percent more used models in 2015 than its stores did a year earlier.

The not-so-good news for Group 1's used performance: Margins on those retail sales softened by 6.3 percent year-over-year.

Company officials shared their fourth-quarter and full-year financial report on Thursday and highlighted that Group 1 stores retailed 105,211 used vehicles in 2015. The average retail price for those used units rose 2.2 percent to $20,955.

However, the gross profit on those used turns settled just below $1,500. According to Group 1, it came in at $1,498, a $100 decline.

On the new-vehicle side, Group 1 sustained a similar drop-off in gross profit as the full-year reading dipped by $94 or 5.3 percent to $1,691. But also like its used-vehicle department, Group 1 moved more new metal as 142,256 units rolled over the dealer group’s curbs in 2015, a 5.1-percent rise year-over-year.

Also of note among the full-year gross profit readings, Group 1 reported its F&I margins came in almost identical year-over-year. The F&I gross profit stood at $1,515 per retailed unit in 2015 after registering in at $1,521 a year earlier.

Eventually, the turning of all of those new and used vehicles as well as F&I activity propelled Group 1 to a full-year adjusted net income record.

The company generated a 9.0-increase in adjusted net income to a record $165.5 million, and adjusted diluted earnings per common share increased 17.0 percent, to an all-time high of $6.87.

Group 1 also highlighted total revenue grew 7.0 percent to a record $10.6 billion.

On a GAAP basis, net income increased 1.1 percent from the comparable prior-year period to $94.0 million.

“While we delivered a record year in total for revenue, gross profit, and adjusted diluted earnings per share, our fourth quarter results were significantly hampered by the negative impact of continued oil and gas price decreases on the economy in our prime markets of Houston, Oklahoma and Texas in general,” Group 1 president and chief executive officer Earl Hesterberg said.

“Additionally, we suffered from increased new and used vehicle margin pressure resulting from oversupply in a variety of key brands, especially in the U.S. luxury segment,” Hesterberg said.

Despite the headwinds Hesterberg referenced, Group 1 indicated its total Q4 revenue increased 5.3 percent — or 8.2 percent on a constant currency basis — to $2.7 billion. And total gross profit grew 3.9 percent to $380.1 million.

The company noted its Q4 retail used-vehicle revenues increased 11.0 percent on increased unit sales of 10.0 percent. For the quarter, retail used-vehicle gross profit was flat at $40.7 million, as margins decreased 9.2 percent or $136 per unit, to $1,346.

On the new-model side, Q4 revenues rose 3.2 percent on 3.0 percent higher unit sales. New-vehicle gross profit for Group 1 decreased 3.7 percent to $80.1 million as margins decreased 6.6 percent or $130 per unit to $1,843.

Also in Q4, F&I gross profit per retail unit was flat at $1,374 per unit.

Editor’s note: Watch for a report in an upcoming installment of Auto Remarketing Today detailing how Group 1 Automotive is navigating the challenges associated with its used-vehicle inventory as well as acquisition possibilities.