From the outside, one might assume Houston's Group 1 Automotive would be hurting.
The nation's third-largest dealership group gets 48 percent of its U.S. new-car and truck sales in Texas -- with 20 percent in the Houston area alone -- and another 9 percent in Oklahoma.
Think falling energy prices and laid-off oil-patch workers. Toss in the devastating floods in Houston this spring. Ouch. That's gotta hurt.
Group 1 said its adjusted net income jumped 20 percent to a second-quarter record of $47.9 million, as revenue climbed 8.6 percent to $2.73 billion.
"We were very much braced, and took quite a few actions, assuming we'd get hit pretty hard" by the drop in energy prices, said Group 1 CEO Earl Hesterberg.
"I'm now starting to think the Houston economy is diversified enough we won't see much" impact from lower oil.
At least, not there. Oklahoma is another story.
"It's very energy dependent," Hesterberg said. He didn't have solid industrywide figures on Oklahoma sales in the second quarter but said they "may've been down double digits." In contrast, Group 1 was down only 2 or 3 percent there, he said.
But what about the floods? They were "a net positive," he added, between replacement demand afterward and "some decent service business."