HOUSTON -

As the group’s used-vehicle sales jumped by 10.6 percent in the U.S., the segment of Group 1 Automotive’s business that shined brightest during the first quarter was the finance and insurance department.

Delving into more U.S. results, F&I revenue jumped 13.3 percent while Group 1 established an F&I gross profit per unit record. That back-end gross climbed 5.5 percent or $80 to an all-time record of $1,538 per retail unit.

The record-setting gross performance in the F&I department helped to offset the slight dip in used retail gross Group 1 produced in the first quarter. The figure came in at $1,613 in Q1, off by 2 percent or $33 year-over-year.

However, group stores turned more used metal this past quarter, retailing 25,148 units. Group 1 also wholesaled more vehicles in Q1 as the total moved up by 6.0 percent to 10,544.

All of those activities combined to push the company's U.S. revenues to $2.0 billion, an increase of 8.9 percent. The revenue growth reflects unit sales increases of 5.0 percent in new vehicles as well as an increase of 5.5 percent in parts and service revenue.

Group 1 highlighted this strong sales performance drove gross profit growth of 8.5 percent, reflecting the higher new and used retail volumes, and an increase of SG&A expenses as a percent of gross profit improved 160 basis points to 73.1 percent and operating margin improved 20 basis points to 3.7 percent.

The company’s U.S. operations accounted for 82.2 percent of total revenues and 86.4 percent of total gross profit.

Adding in the performance of enterprises in the U.K. and Brazil, Group 1 reported first quarter net income of $35.8 million, a 14.4-percent increase, and record first quarter diluted earnings per common share of $1.47, a 23.5-percent increase, on a year-over-year basis.

“We are pleased with our first quarter record earnings driven by strong top-line growth in the United States and the United Kingdom,” Group 1 president and chief executive officer Earl Hesterberg said.

“Contrary to the widespread concern about the impact of lower oil prices on our business, our improvements were led by double-digit same-store new vehicle growth from our dealerships in Houston and along the Gulf Coast,” Hesterberg continued. “We continue to monitor local market conditions and remain prepared to act if we see any signs of weakening, but to date, sales are holding up in our oil-impacted markets.”

In regards to the company’s Brazilian operations, Hesterberg added, “As expected, the Brazilian auto industry had a weak start to 2015 due to tax changes and overall economic issues. However, our Brazilian team outperformed the market throughout the quarter and almost achieved financial breakeven.

“Although we generated a slight loss in Q1, we expect to be profitable in Brazil this year,” he went on to say.