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Group 1 Automotive Reports 12 Percent Third Quarter Revenue Growth
Delivers Record Adjusted EPS and Brazil Returns to Profitability

HOUSTON, Oct. 23, 2014 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), an international, Fortune 500 automotive retailer, today reported 2014 third quarter adjusted net income of $39.8 million, which equates to a diluted earnings per common share of $1.57. Total revenue grew 12.2 percent to an all-time record of $2.6 billion. The quarter included several significant non-recurring charges, especially relating to a convertible senior notes repurchase, which resulted in GAAP net income and diluted earnings per share of $26.2 million and $1.03, respectively. Adjusted net income increased 21.0 percent from the comparable, adjusted prior-year period. On a GAAP basis, net income decreased 20.2 percent from the comparable prior-year period.

Year-to-date 2014 adjusted net income increased 9.1 percent. Adjusted diluted earnings per common share for the first nine months of 2014 were $4.22. On a GAAP basis, net income decreased 19.4 percent from the comparable prior-year period.

Adjusted net income for the third quarter of 2014 excludes $13.6 million of net, after-tax adjustments, including $17.9 million of charges related to the repurchase of our 2.25% and 3.00% convertible notes, and $6.6 million of asset impairments primarily associated with the pending disposition of vacated U.S. dealership real estate and three Renault franchises in Brazil. These charges were partially offset by a net $8.6 million gain on the sale of U.S. dealerships and associated real estate, and a $3.4 million income tax benefit related to deductible goodwill in Brazil.

"We are delighted to announce all-time record earnings this quarter, with the results driven by strong expense leverage and significant revenue increases across all of our business sectors," said Earl J. Hesterberg, Group 1's president and chief executive officer. "Our International businesses were major factors in our success, with our United Kingdom operations delivering all-time record earnings for the quarter and our Brazilian operations returning to profitability following a significant restructuring."

Financial Highlights for Third Quarter 2014 (year-over-year comparable basis)

  • Total revenue increased 12.2 percent to $2.6 billion, an all-time quarterly record. Total gross profit grew 13.7 percent to $374.7 million.
  • New vehicle revenues increased 9.7 percent on 5.2 percent higher unit sales. New vehicle gross profit increased 9.5 percent to $80.2 million as margins rose 4.1 percent or $71 per unit, to $1,803.
  • Retail used vehicle revenues increased 16.2 percent on increased unit sales of 10.4 percent. Retail used vehicle gross profit increased $6.8 million to $44.3 million, though gross profit per unit sold decreased 3.3 percent, or $52 per unit.
  • Parts and service gross profit increased 15.5 percent on revenue growth of 14.3 percent. Same Store parts and service revenue increased 7.4 percent.
  • Finance and Insurance (F&I) gross profit per retail unit increased 9.8 percent to $1,325 per unit. Same Store consolidated F&I gross profit per retail unit increased 9.3 percent to $1,336 per unit. U.S. Same Store F&I gross profit per retail unit increased 5.4 percent to a record $1,475 per unit. U.K. Same Store performance increased 20.3 percent to $747. Brazilian performance increased 47.6 percent to $586.
  • Adjusted SG&A expenses as a percent of gross profit improved 120 basis points to 73.9 percent. Adjusted Same Store SG&A expenses as a percent of gross profit improved 240 basis points to 74.7 percent in the U.K., and 100 basis points to 71.8 percent in the U.S.
  • Quarter-to-date fully diluted common shares outstanding averaged 24.4 million shares, down roughly 1.8 million shares from the second quarter, due to the Company's redemption of outstanding convertible securities.

 

Segment Results for Third Quarter 2014 (year-over-year comparable basis)

  • United States:

The Company's U.S. revenues were $2.2 billion, an increase of 15.1 percent. The revenue growth was primarily explained by unit sales increases of 11.5 percent in new vehicles and 12.2 percent in retail used vehicles, as well as an increase of 14.1 percent in parts and service revenue. This strong revenue growth drove gross profit growth of 14.9 percent, reflecting the higher new and used retail volumes, expanded parts and service margins of 70 basis points, and an F&I increase of 17.9 percent, or $75, to $1,450 per retail unit. As the Company has rebalanced its U.S. dealership portfolio over the past 12 months, consolidated results differ significantly from Same Store results.

On a comparable adjusted basis, SG&A expense as a percent of gross profit improved 110 basis points to 72.9 percent, operating margin was 3.6 percent and pretax margin was 2.6 percent. The Company's U.S. operations accounted for 82.8 percent of total revenues, 85.9 percent of total gross profit and 90.1 percent of the Company's adjusted pretax income.

  • United Kingdom:

The Company's U.K. operations accounted for 9.6 percent of total revenues, 8.0 percent of total gross profit, and 9.2 percent of the Company's adjusted pretax income. Total revenue increased 7.4 percent to $252.2 million, and gross profit increased 17.0 percent. Revenue growth was primarily driven by 35.3 percent and 2.5 percent increases in new and used vehicle retail gross profit per unit sold, respectively, and continued strong growth in parts and service revenue which was up 21.8 percent for the quarter.

On a comparable adjusted basis, SG&A expense as a percent of gross profit improved 230 basis points to 74.7 percent.

  • Brazil:

After a challenging second quarter due to further deterioration in the Brazilian auto industry and business disruption due to the World Cup, the Company's Brazilian operation returned to profit in the third quarter.  The return to profitability was driven by an organizational restructuring, which eliminated 150 positions, 10 percent of total headcount.  Additional headcount reductions will occur with the disposal of 3 Renault dealerships in the fourth quarter.

The Company's Brazil operations accounted for 7.6 percent of total revenues, 6.1 percent of total gross profit and 0.6 percent of the Company's adjusted pretax income. Gross profit was $22.9 million on revenues of $198.6 million. Improvements in gross profit per unit sold were driven by a 45.3 percent increase in F&I and a 24.0 percent increase in used vehicle retail margins. Growth in used vehicle retail sales and parts and service were the primary revenue contributors with 12.2 percent and 9.8 percent increases, respectively. F&I, used vehicles, and parts and service gross profit improved by 18.6 percent, 11.7 percent, and 9.1 percent, respectively.

On a comparable adjusted basis, SG&A expense as a percent of gross profit was at 86.9 percent, operating margin was 1.2 percent and pretax margin was 0.2 percent. On a sequential basis, adjusted SG&A expense as a percent of gross profit improved 8.2 percentage points, a significant drop from 95.1 percent in the second quarter of 2014.

"Despite continued weakness in the Brazilian auto market, our Brazilian business returned to profit in the third quarter," said Earl J. Hesterberg, Group 1's president and chief executive officer.  "This was accomplished by quick and decisive action by our Brazilian management to restructure our operations to reflect the lower overall market sales levels. I continue to be impressed by the intensity and professionalism of our Brazilian teammates."

Capital Restructure

As previously announced, on September 4, 2014, the Company redeemed all of its 2.25% Convertible Senior Notes due 2036. In conjunction with the redemption of the 2.25% Convertible Senior Notes, the Company issued an additional $200.0 million aggregate principal amount of its 5.00% Senior Notes due 2022. Also during September 2014, the Company purchased the remaining $22,550,000 in aggregate principal amount of its outstanding 3.00% Convertible Senior Notes due 2020.

"We significantly simplified our balance sheet this quarter by repurchasing both the remainder of our 3.00% Convertible Senior Notes and all of our outstanding 2.25% Convertible Senior Notes," said John C. Rickel, Group 1's senior vice president and chief financial officer. These actions will reduce our ongoing diluted share count by approximately 2.7 million shares, and remove a significant amount of variability from our ongoing quarterly results."

Share Repurchase Authorization
During the quarter, the Company repurchased 230,200 shares at an average price per share of $73.09 for a total of $16.8 million. As of September 30, 2014, approximately $37.7 million remains available under the Company's prior common stock share repurchase authorization. Purchases may be made from time to time, based on market conditions, legal requirements and other corporate considerations, in the open market or in privately negotiated transactions.

Corporate Development

As previously announced during the third quarter, the Company acquired a Chevrolet franchise and Mazda franchise in Houston, Texas; a Mercedes-Benz franchise and Sprinter franchise in the greater metropolitan area of San Antonio, Texas; and a Mercedes-Benz franchise in Campo Grande, the capital of the Brazilian state of Mato Grosso do Sul.  These franchises are expected to generate approximately $370 million in annual revenues.

Also during the third quarter, as previously announced, the Company divested its BMW, MINI, Mercedes-Benz and Sprinter franchises and associated dealership real estate on Long Island in New York. The Company also disposed of a Honda franchise in Freehold, New Jersey. In total, these dealerships generated approximately $325 million in trailing-twelve-month revenues.

On September 30, 2014, the Company divested a Volkswagen franchise in Holiday, Florida, which generated trailing-twelve-month revenues of approximately $15 million. Additionally, the Company signed a letter of intent to dispose of three Renault stores in Brazil later this year. Detail and trailing-twelve-month revenues will be disclosed at that time.

Year-to-date, the Company has acquired 12 franchises worldwide that are expected to generate approximately $680 million in annual revenues and has disposed of 7 franchises that generated trailing-twelve-month revenues of roughly $390 million.

Third Quarter Earnings Conference Call Details

Senior management will host a conference call today at 10 a.m. ET to discuss the third quarter financial results and the Company's outlook and strategy.

The conference call will be simulcast live on the Internet at www.group1auto.com, then click on 'Investor Relations' and then 'Events' or through this link: http://www.group1corp.com/events. A webcast replay will be available for 30 days.

The conference call will also be available live by dialing in 15 minutes prior to the start of the call at:

Domestic:          

1-888-317-6003

International:      

1-412-317-6061

Conference ID:    

3198212

A telephonic replay will be available following the call through November 20, 2014 by dialing:

Domestic:          

1-877-344-7529

International:      

1-412-317-0088

Replay Pin:        

1936175

About Group 1 Automotive, Inc.

Group 1 owns and operates 150 automotive dealerships, 192 franchises, and 37 collision centers in the United States, the United Kingdom and Brazil that offer 34 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service and insurance contracts; provides automotive maintenance and repair services; and sells vehicle parts.

Group 1 Automotive can be reached on the Internet at www.group1auto.com.

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements related to future, not past, events and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. In this context, the forward-looking statements often include statements regarding our goals, plans, projections and guidance regarding our financial position, results of operations, market position, pending and potential future acquisitions and business strategy, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should," "foresee," "may" or "will" and similar expressions. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Any such forward-looking statements are not assurances of future performance and involve risks and uncertainties that may cause actual results to differ materially from those set forth in the statements. These risks and uncertainties include, among other things, (a) general economic and business conditions, (b) the level of manufacturer incentives, (c) the future regulatory environment, (d) our ability to obtain an inventory of desirable new and used vehicles, (e) our relationship with our automobile manufacturers and the willingness of manufacturers to approve future acquisitions, (f) our cost of financing and the availability of credit for consumers, (g) our ability to complete acquisitions and dispositions and the risks associated therewith, (h) foreign exchange controls and currency fluctuations, and (i) our ability to retain key personnel. For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with the SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.

Investor contacts:
Sheila Roth
Manager, Investor Relations
Group 1 Automotive, Inc.
713-647-5741 | sroth@group1auto.com

Media contacts:
Pete DeLongchamps
V.P. Manufacturer Relations, Financial Services and Public Affairs
Group 1 Automotive, Inc.
713-647-5770 | pdelongchamps@group1auto.com
or
Clint Woods
Pierpont Communications, Inc.
713-627-2223 | cwoods@piercom.com

 

Group 1 Automotive, Inc.

Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)

           
 

 Three Months Ended September 30, 

 

2014

 

2013

 

% Change

REVENUES:

         

New vehicle retail sales

$       1,521,246

 

$       1,386,667

 

9.7

Used vehicle retail sales

615,924

 

529,828

 

16.2

Used vehicle wholesale sales

100,347

 

85,800

 

17.0

Parts and service

291,816

 

255,316

 

14.3

Finance and insurance

97,115

 

82,536

 

17.7

Total revenues

2,626,448

 

2,340,147

 

12.2

           

COST OF SALES:

         

New vehicle retail sales

1,441,016

 

1,313,372

 

9.7

Used vehicle retail sales

571,613

 

488,346

 

17.1

Used vehicle wholesale sales

101,643

 

87,334

 

16.4

Parts and service

137,467

 

121,633

 

13.0

Total cost of sales

2,251,739

 

2,010,685

 

12.0

           

GROSS PROFIT

374,709

 

329,462

 

13.7

           

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

264,233

 

246,863

 

7.0

           

DEPRECIATION AND AMORTIZATION EXPENSE

10,746

 

9,093

 

18.2

           

ASSET IMPAIRMENTS

9,373

 

565

 

1,558.9

           

OPERATING INCOME

90,357

 

72,941

 

23.9

           

OTHER EXPENSE:

         

Floorplan interest expense

(10,452)

 

(10,690)

 

(2.2)

Other interest expense, net

(13,246)

 

(9,971)

 

32.8

Loss on repurchase of long-term debt

(22,790)

 

-

 

100.0

INCOME BEFORE INCOME TAXES

43,869

 

52,280

 

(16.1)

           

PROVISION FOR INCOME TAXES

(17,707)

 

(19,515)

 

(9.3)

           

NET INCOME

$            26,162

 

$            32,765

 

(20.2)

Earnings allocated to participating securities

$            (1,000)

 

$            (1,320)

 

(24.2)

Earnings available to diluted common shares

$            25,162

 

$            31,445

 

(20.0)

DILUTED EARNINGS PER SHARE

$                1.03

 

$                1.19

 

(13.4)

Weighted average dilutive common shares outstanding

24,432

 

26,342

 

(7.3)

Weighted average participating securities

971

 

1,100

 

(11.7)

Total weighted average shares outstanding

25,403

 

27,442

 

(7.4)

           
 

 Nine Months Ended September 30, 

 

2014

 

2013

 

% Change

REVENUES:

         

New vehicle retail sales

$       4,256,146

 

$       3,873,121

 

9.9

Used vehicle retail sales

1,743,071

 

1,536,031

 

13.5

Used vehicle wholesale sales

284,491

 

243,667

 

16.8

Parts and service

844,340

 

753,776

 

12.0

Finance and insurance

270,901

 

232,494

 

16.5

Total revenues

7,398,949

 

6,639,089

 

11.4

           

COST OF SALES:

         

New vehicle retail sales

4,028,164

 

3,656,825

 

10.2

Used vehicle retail sales

1,610,293

 

1,410,768

 

14.1

Used vehicle wholesale sales

281,434

 

242,267

 

16.2

Parts and service

397,079

 

358,004

 

10.9

Total cost of sales

6,316,970

 

5,667,864

 

11.5

           

GROSS PROFIT

1,081,979

 

971,225

 

11.4

           

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

793,761

 

731,455

 

8.5

           

DEPRECIATION AND AMORTIZATION EXPENSE

31,424

 

26,390

 

19.1

           

ASSET IMPAIRMENTS

11,094

 

1,174

 

845.0

           

OPERATING INCOME

245,700

 

212,206

 

15.8

           

OTHER EXPENSE:

         

Floorplan interest expense

(31,695)

 

(30,927)

 

2.5

Other interest expense, net

(36,326)

 

(28,783)

 

26.2

Other expense, net

-

 

(789)

 

(100.0)

Loss on repurchase of long-term debt

(46,403)

 

-

 

100.0

INCOME BEFORE INCOME TAXES

131,276

 

151,707

 

(13.5)

           

PROVISION FOR INCOME TAXES

(56,949)

 

(59,436)

 

(4.2)

           

NET INCOME

$            74,327

 

$            92,271

 

(19.4)

Earnings allocated to participating securities

$            (2,769)

 

$            (3,843)

 

(27.9)

Earnings available to diluted common shares

$            71,558

 

$            88,428

 

(19.1)

DILUTED EARNINGS PER SHARE

$                2.82

 

$                3.52

 

(19.9)

Weighted average dilutive common shares outstanding

25,363

 

25,153

 

0.8

Weighted average participating securities

973

 

1,095

 

(11.1)

Total weighted average shares outstanding

26,336

 

26,248

 

0.3

 

 

Group 1 Automotive, Inc.

Consolidated Balance Sheets

(Dollars in thousands)

           
 

September 30,

 

December 31,

   
 

2014

 

2013

 

% Change

 ASSETS: 

(Unaudited)

       

 CURRENT ASSETS: 

         

 Cash and cash equivalents 

$                   50,652

 

$                 20,215

 

150.6

 Contracts in transit and vehicle receivables, net 

190,641

 

225,156

 

(15.3)

 Accounts and notes receivable, net 

138,735

 

135,058

 

2.7

 Inventories, net 

1,490,520

 

1,542,318

 

(3.4)

 Deferred income taxes 

17,137

 

21,150

 

(19.0)

 Prepaid expenses and other current assets 

41,570

 

24,041

 

72.9

 Total current assets 

1,929,255

 

1,967,938

 

(2.0)

 PROPERTY AND EQUIPMENT, net 

859,339

 

796,356

 

7.9

 GOODWILL AND INTANGIBLE FRANCHISE RIGHTS 

1,160,666

 

1,038,808

 

11.7

 OTHER ASSETS 

13,249

 

16,376

 

(19.1)

 Total assets 

$             3,962,509

 

$             3,819,478

 

3.7

           

 LIABILITIES AND STOCKHOLDERS' EQUITY: 

         

 CURRENT LIABILITIES: 

         

 Floorplan notes payable - credit facility and other 

$             1,077,097

 

$             1,143,104

 

(5.8)

 Offset account related to floorplan notes payable - credit facility 

(37,516)

 

(56,198)

 

(33.2)

 Floorplan notes payable - manufacturer affiliates 

293,846

 

346,572

 

(15.2)

 Offset account related to floorplan notes payable - manufacturer affiliates 

(25,000)

 

 

100.0

 Current maturities of long-term debt and short-term financing 

41,021

 

36,225

 

13.2

 Accounts payable 

292,971

 

254,930

 

14.9

 Accrued expenses 

160,220

 

140,543

 

14.0

 Total current liabilities 

1,802,639

 

1,865,176

 

(3.4)

 2.25% CONVERTIBLE SENIOR NOTES (aggregate principal of $0 and $182,753 at September 30, 2014 and December 31, 2013, respectively) 

 

160,334

 

(100.0)

 3.00% CONVERTIBLE SENIOR NOTES (aggregate principal of $0 and $115,000 at September 30, 2014 and December 31, 2013, respectively) 

 

84,305

 

(100.0)

 5.00% SENIOR NOTES (aggregate principal of $550,000 at September 30, 2014) 

539,822

 

 

100.0

 MORTGAGE FACILITY, net of current maturities 

55,746

 

64,271

 

(13.3)

 ACQUISITION LINE 

 

60,000

 

(100.0)

 OTHER REAL ESTATE RELATED AND LONG-TERM DEBT, net of current maturities 

289,652

 

250,958

 

15.4

 CAPITAL LEASE OBLIGATIONS RELATED TO REAL ESTATE, net of current maturities 

53,279

 

43,821

 

21.6

 DEFERRED INCOME TAXES 

148,304

 

152,291

 

(2.6)

 LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES 

23,483

 

26,078

 

(10.0)

 OTHER LIABILITIES 

64,259

 

47,975

 

33.9

 COMMITMENTS AND CONTINGENCIES 

         

 TEMPORARY EQUITY - REDEEMABLE EQUITY PORTION OF THE 2.25% and 3.00% CONVERTIBLE SENIOR NOTES 

 

29,094

 

(100.0)

 STOCKHOLDERS' EQUITY: 

         

 Common stock 

258

 

257

 

0.4

 Additional paid-in capital 

286,354

 

368,641

 

(22.3)

 Retained earnings 

838,174

 

776,101

 

8.0

 Accumulated other comprehensive loss 

(59,500)

 

(51,677)

 

15.1

 Treasury stock 

(79,961)

 

(58,147)

 

37.5

 Total stockholders' equity 

985,325

 

1,035,175

 

(4.8)

 Total liabilities and stockholders' equity 

$             3,962,509

 

$             3,819,478

 

3.7

 

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

                   
     

Three Months Ended

 

Nine Months Ended

     

September 30,

 

September 30,

     

2014 (%)

 

2013 (%)

 

2014 (%)

 

2013 (%)

NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:

             

Region

Geographic Market

               

East

Massachusetts

 

6.6

 

5.5

 

5.9

 

5.9

 

Georgia

 

4.8

 

3.3

 

4.7

 

3.6

 

New Jersey

 

2.7

 

4.1

 

3.2

 

4.2

 

New Hampshire

 

2.1

 

2.6

 

2.2

 

2.4

 

Louisiana

 

1.6

 

2.1

 

1.7

 

2.3

 

South Carolina

 

1.6

 

1.5

 

1.5

 

1.5

 

Mississippi

 

1.4

 

1.6

 

1.4

 

1.6

 

Florida

 

1.4

 

1.3

 

1.4

 

1.3

 

New York

 

1.2

 

2.4

 

1.7

 

2.7

 

Alabama

 

0.7

 

0.8

 

0.8

 

0.8

 

Maryland

 

0.5

 

0.6

 

0.5

 

0.6

     

24.6

 

25.8

 

25.0

 

26.9

                   

West

Texas

 

37.1

 

32.0

 

35.4

 

32.4

 

California

 

9.3

 

8.7

 

9.6

 

10.7

 

Oklahoma

 

8.6

 

8.0

 

8.4

 

7.8

 

Kansas

 

2.1

 

2.5

 

2.3

 

2.5

 

Louisiana

 

0.6

 

0.7

 

0.6

 

0.3

     

57.7

 

51.9

 

56.3

 

53.7

                   

International

Brazil

 

9.2

 

12.1

 

9.8

 

10.2

 

United Kingdom

 

8.5

 

10.2

 

8.9

 

9.2

     

100.0

 

100.0

 

100.0

 

100.0

                   

NEW VEHICLE UNIT SALES BRAND MIX:

               

Toyota/Scion/Lexus

 

28.3

 

26.9

 

27.2

 

27.0

BMW/MINI

 

10.7

 

11.1

 

11.2

 

10.7

Honda/Acura

 

10.5

 

11.6

 

11.2

 

12.1

Ford/Lincoln

 

10.4

 

12.3

 

11.1

 

11.8

Nissan/Infiniti

 

8.9

 

9.8

 

9.3

 

10.2

Chevrolet/GMC/Buick/Cadillac

 

7.0

 

4.6

 

6.0

 

4.8

Volkswagen/Audi/Porsche

 

6.2

 

6.6

 

6.3

 

6.5

Hyundai/Kia

 

5.7

 

5.0

 

5.5

 

4.7

Chrysler/Dodge/Jeep/RAM

 

4.4

 

3.9

 

4.4

 

4.0

Mercedes-Benz/smart/Sprinter

 

4.2

 

3.8

 

4.2

 

4.2

Other

 

3.7

 

4.4

 

3.6

 

4.0

     

100.0

 

100.0

 

100.0

 

100.0

 

 

Group 1 Automotive, Inc.

Additional Information - U.S.

(Unaudited)

(Dollars in thousands, except per unit amounts)

           
 

Three Months Ended September 30,

 

2014

 

2013

 

% Change

REVENUES:

         

New vehicle retail sales

$         1,245,430

 

$       1,091,221

 

14.1

Used vehicle retail sales

515,911

 

443,716

 

16.3

Used vehicle wholesale sales

75,272

 

59,833

 

25.8

Total used

591,183

 

503,549

 

17.4

Parts and service

249,724

 

218,880

 

14.1

Finance and insurance

89,268

 

75,728

 

17.9

Total

$         2,175,605

 

$       1,889,378

 

15.1

           

GROSS MARGIN %:

         

New vehicle retail sales

5.0

 

5.0

   

Used vehicle retail sales

7.4

 

8.1

   

Used vehicle wholesale sales

(1.9)

 

(2.3)

   

Total used

6.2

 

6.9

   

Parts and service

53.6

 

52.9

   

Finance and insurance

100.0

 

100.0

   

Total

14.8

 

14.8

   
           

GROSS PROFIT:

         

New vehicle retail sales

$              61,975

 

$            54,086

 

14.6

Used vehicle retail sales

38,251

 

35,937

 

6.4

Used vehicle wholesale sales

(1,431)

 

(1,373)

 

4.2

Total used

36,820

 

34,564

 

6.5

Parts and service

133,874

 

115,887

 

15.5

Finance and insurance

89,268

 

75,728

 

17.9

Total

$            321,937

 

$          280,265

 

14.9

           

UNITS SOLD:

         

Retail new vehicles sold

36,649

 

32,866

 

11.5

Retail used vehicles sold

24,917

 

22,206

 

12.2

Wholesale used vehicles sold

11,984

 

10,455

 

14.6

Total used

36,901

 

32,661

 

13.0

           

AVERAGE RETAIL SALES PRICE:

         

New vehicle retail

$              33,983

 

$            33,202

 

2.4

Used vehicle retail

$              20,705

 

$            19,982

 

3.6

           

GROSS PROFIT PER UNIT SOLD:

         

New vehicle retail sales

$                1,691

 

$              1,646

 

2.7

Used vehicle retail sales

1,535

 

1,618

 

(5.1)

Used vehicle wholesale sales

(119)

 

(131)

 

(9.2)

Total used

998

 

1,058

 

(5.7)

Finance and insurance (per retail unit)

$                1,450

 

$              1,375

 

5.5

OTHER: (1)

         

SG&A expenses

$            234,849

 

$          207,494

 

13.2

SG&A as % revenues

10.8

 

11.0

   

SG&A as % gross profit

72.9

 

74.0

   

Operating margin %

3.6

 

3.4

   

Pretax margin %

2.6

 

2.5

   
           

INTEREST EXPENSE:

         

Floorplan interest

$              (8,543)

 

$             (8,087)

 

5.6

Floorplan assistance

11,876

 

10,108

 

17.5

Net floorplan income

$                3,333

 

$               2,021

 

64.9

Other interest expense, net

$            (12,265)

 

$             (9,650)

 

27.1

           
           
 

Nine Months Ended September 30,

 

2014

 

2013

 

% Change

REVENUES:

         

New vehicle retail sales

$         3,449,303

 

$       3,132,461

 

10.1

Used vehicle retail sales

1,440,473

 

1,310,629

 

9.9

Used vehicle wholesale sales

208,392

 

174,227

 

19.6

Total used

1,648,865

 

1,484,856

 

11.0

Parts and service

723,839

 

659,318

 

9.8

Finance and insurance

248,820

 

216,184

 

15.1

Total

$         6,070,827

 

$       5,492,819

 

10.5

           

GROSS MARGIN %:

         

New vehicle retail sales

5.1

 

5.2

   

Used vehicle retail sales

8.0

 

8.5

   

Used vehicle wholesale sales

0.9

 

0.6

   

Total used

7.1

 

7.6

   

Parts and service

53.6

 

53.2

   

Finance and insurance

100.0

 

100.0

   

Total

15.3

 

15.4

   
           

GROSS PROFIT:

         

New vehicle retail sales

$            175,006

 

$          163,994

 

6.7

Used vehicle retail sales

114,613

 

111,897

 

2.4

Used vehicle wholesale sales

1,964

 

1,000

 

96.4

Total used

116,577

 

112,897

 

3.3

Parts and service

388,042

 

350,608

 

10.7

Finance and insurance

248,820

 

216,184

 

15.1

Total

$            928,445

 

$          843,683

 

10.0

           

UNITS SOLD:

         

Retail new vehicles sold

101,281

 

94,233

 

7.5

Retail used vehicles sold

70,367

 

65,250

 

7.8

Wholesale used vehicles sold

32,395

 

30,052

 

7.8

Total used

102,762

 

95,302

 

7.8

           

AVERAGE RETAIL SALES PRICE:

         

New vehicle retail

$              34,057

 

$            33,242

 

2.5

Used vehicle retail

$              20,471

 

$            20,086

 

1.9

           

GROSS PROFIT PER UNIT SOLD:

         

New vehicle retail sales

$                1,728

 

$              1,740

 

(0.7)

Used vehicle retail sales

1,629

 

1,715

 

(5.0)

Used vehicle wholesale sales

61

 

33

 

84.8

Total used

1,134

 

1,185

 

(4.3)

Finance and insurance (per retail unit)

$                1,450

 

$              1,356

 

6.9

           

OTHER: (1)

         

SG&A expenses

$            677,142

 

$          619,562

 

9.3

SG&A as % revenues

11.2

 

11.3

   

SG&A as % gross profit

72.9

 

73.4

   

Operating margin %

3.7

 

3.7

   

Pretax margin %

2.7

 

2.7

   
           

INTEREST EXPENSE:

         

 Floorplan interest 

$            (25,489)

 

$           (25,027)

 

1.8

 Floorplan assistance 

32,969

 

28,291

 

16.5

 Net floorplan income 

$                7,480

 

$               3,264

 

129.2

 Other interest expense, net 

$            (34,327)

 

$           (27,991)

 

22.6

 

   

(1)

These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.

 

Group 1 Automotive, Inc.

Additional Information - U.K.

(Unaudited)

(Dollars in thousands, except per unit amounts)

           
 

Three Months Ended September 30,

 

2014

 

2013

 

% Change

REVENUES:

         

New vehicle retail sales

$       134,859

 

$        136,740

 

(1.4)

Used vehicle retail sales

70,163

 

59,508

 

17.9

Used vehicle wholesale sales

21,110

 

16,959

 

24.5

Total used

91,273

 

76,467

 

19.4

Parts and service

21,272

 

17,470

 

21.8

Finance and insurance

4,797

 

4,237

 

13.2

Total

$       252,201

 

$        234,914

 

7.4

           

GROSS MARGIN %:

         

New vehicle retail sales

6.9

 

5.7

   

Used vehicle retail sales

5.9

 

6.5

   

Used vehicle wholesale sales

(0.8)

 

(1.3)

   

Total used

4.4

 

4.8

   

Parts and service

55.2

 

56.1

   

Finance and insurance

100.0

 

100.0

   

Total

11.8

 

10.9

   
           

GROSS PROFIT:

         

New vehicle retail sales

$           9,305

 

$            7,848

 

18.6

Used vehicle retail sales

4,165

 

3,849

 

8.2

Used vehicle wholesale sales

(174)

 

(214)

 

(18.7)

Total used

3,991

 

3,635

 

9.8

Parts and service

11,746

 

9,793

 

19.9

Finance and insurance

4,797

 

4,237

 

13.2

Total

$         29,839

 

$          25,513

 

17.0

           

UNITS SOLD:

         

Retail new vehicles sold

3,773

 

4,306

 

(12.4)

Retail used vehicles sold

2,649

 

2,510

 

5.5

Wholesale used vehicles sold

2,183

 

2,078

 

5.1

Total used

4,832

 

4,588

 

5.3

           

AVERAGE RETAIL SALES PRICE:

         

New vehicle retail

$         35,743

 

$          31,756

 

12.6

Used vehicle retail

$         26,487

 

$          23,708

 

11.7

           

GROSS PROFIT PER UNIT SOLD:

         

New vehicle retail sales

$           2,466

 

$            1,823

 

35.3

Used vehicle retail sales

1,572

 

1,533

 

2.5

Used vehicle wholesale sales

(80)

 

(103)

 

(22.3)

Total used

826

 

792

 

4.3

Finance and insurance (per retail unit)

$              747

 

$               622

 

20.1

           

OTHER:

         

SG&A expenses

$         22,275

 

$          19,656

 

13.3

SG&A as % revenues

8.8

 

8.4

   

SG&A as % gross profit

74.7

 

77.0

   

Operating margin %

2.7

 

2.2

   

Pretax margin %

2.3

 

1.9

   
           

INTEREST EXPENSE:

         

Floorplan interest

$             (419)

 

$             (425)

 

(1.4)

Floorplan assistance

246

 

111

 

121.6

Net floorplan expense

$             (173)

 

$             (314)

 

(44.9)

Other interest expense, net

$             (442)

 

$             (293)

 

50.9

           
 

Nine Months Ended September 30,

 

2014

 

2013

 

% Change

REVENUES:

         

New vehicle retail sales

$       397,263

 

$        342,038

 

16.1

Used vehicle retail sales

214,900

 

162,901

 

31.9

Used vehicle wholesale sales

62,304

 

48,682

 

28.0

Total used

277,204

 

211,583

 

31.0

Parts and service

62,843

 

49,265

 

27.6

Finance and insurance

13,916

 

10,542

 

32.0

Total

$       751,226

 

$        613,428

 

22.5

           

GROSS MARGIN %:

         

New vehicle retail sales

6.8

 

6.3

   

Used vehicle retail sales

5.9

 

6.2

   

Used vehicle wholesale sales

 

(1.5)

   

Total used

4.6

 

4.4

   

Parts and service

55.1

 

54.5

   

Finance and insurance

100.0

 

100.0

   

Total

11.7

 

11.2

   
           

GROSS PROFIT:

         

New vehicle retail sales

$         26,843

 

$          21,641

 

24.0

Used vehicle retail sales

12,684

 

10,117

 

25.4

Used vehicle wholesale sales

(4)

 

(743)

 

(99.5)

Total used

12,680

 

9,374

 

35.3

Parts and service

34,655

 

26,871

 

29.0

Finance and insurance

13,916

 

10,542

 

32.0

Total

$         88,094

 

$          68,428

 

28.7

           

UNITS SOLD:

         

Retail new vehicles sold

11,144

 

10,738

 

3.8

Retail used vehicles sold

8,108

 

6,762

 

19.9

Wholesale used vehicles sold

6,539

 

5,772

 

13.3

Total used

14,647

 

12,534

 

16.9

           

AVERAGE RETAIL SALES PRICE:

         

New vehicle retail

$         35,648

 

$          31,853

 

11.9

Used vehicle retail

$         26,505

 

$          24,091

 

10.0

           

GROSS PROFIT PER UNIT SOLD:

         

New vehicle retail sales

$           2,409

 

$            2,015

 

19.6

Used vehicle retail sales

1,564

 

1,496

 

4.5

Used vehicle wholesale sales

(1)

 

(129)

 

(99.2)

Total used

866

 

748

 

15.8

Finance and insurance (per retail unit)

$              723

 

$               602

 

20.1

           

OTHER:(1)

         

SG&A expenses

$         67,063

 

$          54,120

 

23.9

SG&A as % revenues

8.9

 

8.8

   

SG&A as % gross profit

76.1

 

79.1

   

Operating margin %

2.5

 

2.0

   

Pretax margin %

2.1

 

1.7

   
           

INTEREST EXPENSE:

         

 Floorplan interest 

$          (1,188)

 

$          (1,152)

 

3.1

 Floorplan assistance 

504

 

111

 

354.1

 Net floorplan expense 

$             (684)

 

$          (1,041)

 

(34.3)

 Other interest expense, net 

$          (1,402)

 

$             (800)

 

75.3

 

   

(1)

These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.

 

Group 1 Automotive, Inc.

Additional Information - Brazil

(Unaudited)

(Dollars in thousands, except per unit amounts)

           
 

Three Months Ended September 30,

 

2014

 

2013

 

% Change

REVENUES:

         

New vehicle retail sales

$       140,957

 

$        158,706

 

(11.2)

Used vehicle retail sales

29,850

 

26,604

 

12.2

Used vehicle wholesale sales

3,965

 

9,008

 

(56.0)

Total used

33,815

 

35,612

 

(5.0)

Parts and service

20,820

 

18,966

 

9.8

Finance and insurance

3,050

 

2,571

 

18.6

Total

$       198,642

 

$        215,855

 

(8.0)

           

GROSS MARGIN %:

         

New vehicle retail sales

6.3

 

7.2

   

Used vehicle retail sales

6.3

 

6.4

   

Used vehicle wholesale sales

7.8

 

0.6

   

Total used

6.5

 

4.9

   

Parts and service

41.9

 

42.2

   

Finance and insurance

100.0

 

100.0

   

Total

11.5

 

11.0

   
           

GROSS PROFIT:

         

New vehicle retail sales

$           8,950

 

$          11,361

 

(21.2)

Used vehicle retail sales

1,895

 

1,696

 

11.7

Used vehicle wholesale sales

309

 

53

 

483.0

Total used

2,204

 

1,749

 

26.0

Parts and service

8,729

 

8,003

 

9.1

Finance and insurance

3,050

 

2,571

 

18.6

Total

$         22,933

 

$          23,684

 

(3.2)

           

UNITS SOLD:

         

Retail new vehicles sold

4,072

 

5,139

 

(20.8)

Retail used vehicles sold

1,210

 

1,343

 

(9.9)

Wholesale used vehicles sold

583

 

912

 

(36.1)

Total used

1,793

 

2,255

 

(20.5)

           

AVERAGE RETAIL SALES PRICE:

         

New vehicle retail

$         34,616

 

$          30,883

 

12.1

Used vehicle retail

$         24,669

 

$          19,809

 

24.5

           

GROSS PROFIT PER UNIT SOLD:

         

New vehicle retail sales

$           2,198

 

$            2,211

 

(0.6)

Used vehicle retail sales

1,566

 

1,263

 

24.0

Used vehicle wholesale sales

530

 

58

 

813.8

Total used

1,229

 

776

 

58.4

Finance and insurance (per retail unit)

$              577

 

$               397

 

45.3

           

OTHER: (1)

         

SG&A expenses

$         19,920

 

$          20,277

 

(1.8)

SG&A as % revenues

10.0

 

9.4

   

SG&A as % gross profit

86.9

 

85.6

   

Operating margin %

1.2

 

1.4

   

Pretax margin %

0.2

 

0.3

   
           

INTEREST EXPENSE:

         

 Floorplan interest 

$          (1,490)

 

$          (2,178)

 

(31.6)

 Floorplan assistance 

 

 

-

 Net floorplan expense 

$          (1,490)

 

$          (2,178)

 

(31.6)

 Other interest expense, net 

$             (539)

 

$               (29)

 

1,758.6

           
 

Nine Months Ended September 30,

 

2014

 

2013 (2)

 

% Change

REVENUES:

         

New vehicle retail sales

$       409,580

 

$        398,622

 

2.7

Used vehicle retail sales

87,698

 

62,501

 

40.3

Used vehicle wholesale sales

13,795

 

20,758

 

(33.5)

Total used

101,493

 

83,259

 

21.9

Parts and service

57,658

 

45,193

 

27.6

Finance and insurance

8,165

 

5,768

 

41.6

Total

$       576,896

 

$        532,842

 

8.3

           

GROSS MARGIN %:

         

New vehicle retail sales

6.4

 

7.7

   

Used vehicle retail sales

6.2

 

5.2

   

Used vehicle wholesale sales

8.0

 

5.5

   

Total used

6.5

 

5.3

   

Parts and service

42.6

 

40.5

   

Finance and insurance

100.0

 

100.0

   

Total

11.3

 

11.1

   
           

GROSS PROFIT:

   

   

New vehicle retail sales

$         26,133

 

$          30,661

 

(14.8)

Used vehicle retail sales

5,481

 

3,249

 

68.7

Used vehicle wholesale sales

1,097

 

1,143

 

(4.0)

Total used

6,578

 

4,392

 

49.8

Parts and service

24,564

 

18,293

 

34.3

Finance and insurance

8,165

 

5,768

 

41.6

Total

$         65,440

 

$          59,114

 

10.7

           

UNITS SOLD:

         

Retail new vehicles sold

12,274

 

11,967

 

2.6

Retail used vehicles sold

3,899

 

2,919

 

33.6

Wholesale used vehicles sold

1,830

 

2,028

 

(9.8)

Total used

5,729

 

4,947

 

15.8

           

AVERAGE RETAIL SALES PRICE:

         

New vehicle retail

$         33,370

 

$          33,310

 

0.2

Used vehicle retail

$         22,492

 

$          21,412

 

5.0

           

GROSS PROFIT PER UNIT SOLD:

         

New vehicle retail sales

$           2,129

 

$            2,562

 

(16.9)

Used vehicle retail sales

1,406

 

1,113

 

26.3

Used vehicle wholesale sales

599

 

564

 

6.2

Total used

1,148

 

888

 

29.3

Finance and insurance (per retail unit)

$              505

 

$               387

 

30.5

           

OTHER: (1)

         

SG&A expenses

$         60,342

 

$          48,748

 

23.8

SG&A as % revenues

10.5

 

9.1

   

SG&A as % gross profit

92.2

 

82.5

   

Operating margin %

0.6

 

1.7

   

Pretax margin %

(0.4)

 

0.9

   
           

INTEREST EXPENSE:

         

 Floorplan interest 

$          (5,018)

 

$          (4,748)

 

5.7

 Floorplan assistance 

 

 

-

 Net floorplan expense 

$          (5,018)

 

$          (4,748)

 

5.7

 Other interest (expense) income, net 

$             (597)

 

$                   7

 

(8,628.6)

 

   

(1)

These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.

   

(2)

Results are for the period from the date of acquisition (February 28, 2013) through September 30, 2013.

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

(Dollars in thousands, except per unit amounts)

           
 

Three Months Ended September 30,

 

2014

 

2013

 

% Change

REVENUES:

         

New vehicle retail sales

$     1,521,246

 

$     1,386,667

 

9.7

Used vehicle retail sales

615,924

 

529,828

 

16.2

Used vehicle wholesale sales

100,347

 

85,800

 

17.0

Total used

716,271

 

615,628

 

16.3

Parts and service

291,816

 

255,316

 

14.3

Finance and insurance

97,115

 

82,536

 

17.7

Total

$     2,626,448

 

$     2,340,147

 

12.2

           

GROSS MARGIN %:

         

New vehicle retail sales

5.3

 

5.3

   

Used vehicle retail sales

7.2

 

7.8

   

Used vehicle wholesale sales

(1.3)

 

(1.8)

   

Total used

6.0

 

6.5

   

Parts and service

52.9

 

52.4

   

Finance and insurance

100.0

 

100.0

   

Total

14.3

 

14.1

   
           

GROSS PROFIT:

         

New vehicle retail sales

$          80,230

 

$          73,295

 

9.5

Used vehicle retail sales

44,311

 

41,482

 

6.8

Used vehicle wholesale sales

(1,296)

 

(1,534)

 

(15.5)

Total used

43,015

 

39,948

 

7.7

Parts and service

154,349

 

133,683

 

15.5

Finance and insurance

97,115

 

82,536

 

17.7

Total

$        374,709

 

$        329,462

 

13.7

           

UNITS SOLD:

         

Retail new vehicles sold

44,494

 

42,311

 

5.2

Retail used vehicles sold

28,776

 

26,059

 

10.4

Wholesale used vehicles sold

14,750

 

13,445

 

9.7

Total used

43,526

 

39,504

 

10.2

           

AVERAGE RETAIL SALES PRICE:

         

New vehicle retail

$          34,190

 

$          32,773

 

4.3

Used vehicle retail

$          21,404

 

$          20,332

 

5.3

           

GROSS PROFIT PER UNIT SOLD:

         

New vehicle retail sales

$            1,803

 

$            1,732

 

4.1

Used vehicle retail sales

1,540

 

1,592

 

(3.3)

Used vehicle wholesale sales

(88)

 

(114)

 

(22.8)

Total used

988

 

1,011

 

(2.3)

Finance and insurance (per retail unit)

$            1,325

 

$            1,207

 

9.8

           

OTHER: (1)

         

SG&A expenses

$        277,044

 

$        247,427

 

12.0

SG&A as % revenues

10.5

 

10.6

   

SG&A as % gross profit

73.9

 

75.1

   

Operating margin %

3.3

 

3.1

   

Pretax margin %

2.4

 

2.2

   
           

INTEREST EXPENSE:

         

 Floorplan interest 

$         (10,452)

 

$         (10,690)

 

(2.2)

 Floorplan assistance 

12,122

 

10,219

 

18.6

 Net floorplan income (expense) 

$            1,670

 

$              (471)

 

454.6

 Other interest expense, net 

$         (13,246)

 

$           (9,971)

 

32.8

           
           
 

Nine Months Ended September 30,

 

2014

 

2013

 

% Change

REVENUES:

         

New vehicle retail sales

$     4,256,146

 

$     3,873,121

 

9.9

Used vehicle retail sales

1,743,071

 

1,536,031

 

13.5

Used vehicle wholesale sales

284,491

 

243,667

 

16.8

Total used

2,027,562

 

1,779,698

 

13.9

Parts and service

844,340

 

753,776

 

12.0

Finance and insurance

270,901

 

232,494

 

16.5

Total

$     7,398,949

 

$     6,639,089

 

11.4

           

GROSS MARGIN %:

         

New vehicle retail sales

5.4

 

5.6

   

Used vehicle retail sales

7.6

 

8.2

   

Used vehicle wholesale sales

1.1

 

0.6

   

Total used

6.7

 

7.1

   

Parts and service

53.0

 

52.5

   

Finance and insurance

100.0

 

100.0

   

Total

14.6

 

14.6

   
           

GROSS PROFIT:

         

New vehicle retail sales

$        227,982

 

$        216,296

 

5.4

Used vehicle retail sales

132,778

 

125,263

 

6.0

Used vehicle wholesale sales

3,057

 

1,400

 

118.4

Total used

135,835

 

126,663

 

7.2

Parts and service

447,261

 

395,772

 

13.0

Finance and insurance

270,901

 

232,494

 

16.5

Total

$     1,081,979

 

$        971,225

 

11.4

           

UNITS SOLD:

         

Retail new vehicles sold

124,699

 

116,938

 

6.6

Retail used vehicles sold

82,374

 

74,931

 

9.9

Wholesale used vehicles sold

40,764

 

37,852

 

7.7

Total used

123,138

 

112,783

 

9.2

           

AVERAGE RETAIL SALES PRICE:

         

New vehicle retail

$          34,131

 

$          33,121

 

3.1

Used vehicle retail

$          21,160

 

$          20,499

 

3.2

           

GROSS PROFIT PER UNIT SOLD:

         

New vehicle retail sales

$            1,828

 

$            1,850

 

(1.2)

Used vehicle retail sales

1,612

 

1,672

 

(3.6)

Used vehicle wholesale sales

75

 

37

 

102.7

Total used

1,103

 

1,123

 

(1.8)

Finance and insurance (per retail unit)

$            1,308

 

$            1,212

 

7.9

           

OTHER: (1)

         

SG&A expenses

$        804,547

 

$        722,430

 

11.4

SG&A as % revenues

10.9

 

10.9

   

SG&A as % gross profit

74.4

 

74.4

   

Operating margin %

3.3

 

3.3

   

Pretax margin %

2.4

 

2.5

   
           

INTEREST EXPENSE:

         

 Floorplan interest 

$         (31,695)

 

$         (30,927)

 

2.5

 Floorplan assistance 

33,473

 

28,402

 

17.9

 Net floorplan income (expense) 

$             1,778

 

$           (2,525)

 

170.4

 Other interest expense, net 

$         (36,326)

 

$         (28,783)

 

26.2

 

   

(1)

These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.

 

Group 1 Automotive, Inc.

Additional Information - Same Store U.S. (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)

           
 

Three Months Ended September 30,

 

2014

 

2013

 

% Change

REVENUES:

         

New vehicle retail sales

$       1,120,864

 

$       1,053,601

 

6.4

Used vehicle retail sales

459,223

 

429,480

 

6.9

Used vehicle wholesale sales

67,404

 

57,456

 

17.3

Total used

526,627

 

486,936

 

8.2

Parts and service

225,737

 

212,800

 

6.1

Finance and insurance

81,553

 

74,479

 

9.5

Total

$       1,954,781

 

$       1,827,816

 

6.9

           

GROSS MARGIN %:

         

New vehicle retail sales

4.9

 

5.0

   

Used vehicle retail sales

7.5

 

8.2

   

Used vehicle wholesale sales

(1.6)

 

(1.6)

   

Total used

6.3

 

7.0

   

Parts and service

53.6

 

52.8

   

Finance and insurance

100.0

 

100.0

   

Total

14.9

 

15.0

   
           

GROSS PROFIT:

         

New vehicle retail sales

$            55,456

 

$            52,448

 

5.7

Used vehicle retail sales

34,303

 

35,055

 

(2.1)

Used vehicle wholesale sales

(1,091)

 

(900)

 

21.2

Total used

33,212

 

34,155

 

(2.8)

Parts and service

120,951

 

112,461

 

7.5

Finance and insurance

81,553

 

74,479

 

9.5

Total

$          291,172

 

$          273,543

 

6.4

           

UNITS SOLD:

         

Retail new vehicles sold

33,100

 

31,717

 

4.4

Retail used vehicles sold

22,180

 

21,521

 

3.1

Wholesale used vehicles sold

10,800

 

10,128

 

6.6

Total used

32,980

 

31,649

 

4.2

           

AVERAGE RETAIL SALES PRICE:

         

New vehicle retail

$            33,863

 

$            33,219

 

1.9

Used vehicle retail

$            20,704

 

$            19,956

 

3.7

           

GROSS PROFIT PER UNIT SOLD:

         

New vehicle retail sales

$              1,675

 

$              1,654

 

1.3

Used vehicle retail sales

1,547

 

1,629

 

(5.0)

Used vehicle wholesale sales

(101)

 

(89)

 

13.5

Total used

1,007

 

1,079

 

(6.7)

Finance and insurance (per retail unit)

$              1,475

 

$              1,399

 

5.4

           

OTHER:(2)

         

SG&A expenses

$          209,060

 

$          199,003

 

5.1

SG&A as % revenues

10.7

 

10.9

   

SG&A as % gross profit

71.8

 

72.8

   

Operating margin %

3.8

 

3.6

   
           
 

Nine Months Ended September 30,

 

2014

 

2013

 

% Change

REVENUES:

         

New vehicle retail sales

$       3,179,584

 

$       3,016,656

 

5.4

Used vehicle retail sales

1,324,402

 

1,268,399

 

4.4

Used vehicle wholesale sales

192,324

 

166,340

 

15.6

Total used

1,516,726

 

1,434,739

 

5.7

Parts and service

669,764

 

634,049

 

5.6

Finance and insurance

233,426

 

210,726

 

10.8

Total

$       5,599,500

 

$       5,296,170

 

5.7

           

GROSS MARGIN %:

         

New vehicle retail sales

5.1

 

5.3

   

Used vehicle retail sales

7.9

 

8.6

   

Used vehicle wholesale sales

1.3

 

1.0

   

Total used

7.1

 

7.7

   

Parts and service

53.5

 

53.2

   

Finance and insurance

100.0

 

100.0

   

Total

15.4

 

15.4

   
           

GROSS PROFIT:

         

New vehicle retail sales

$          160,865

 

$          159,600

 

0.8

Used vehicle retail sales

104,774

 

108,705

 

(3.6)

Used vehicle wholesale sales

2,416

 

1,677

 

44.1

Total used

107,190

 

110,382

 

(2.9)

Parts and service

358,367

 

337,018

 

6.3

Finance and insurance

233,426

 

210,726

 

10.8

Total

$          859,848

 

$          817,726

 

5.2

           

UNITS SOLD:

         

Retail new vehicles sold

93,447

 

90,283

 

3.5

Retail used vehicles sold

64,336

 

63,070

 

2.0

Wholesale used vehicles sold

30,203

 

28,766

 

5.0

Total used

94,539

 

91,836

 

2.9

           

AVERAGE RETAIL SALES PRICE:

         

New vehicle retail

$            34,026

 

$            33,413

 

1.8

Used vehicle retail

$            20,586

 

$            20,111

 

2.4

           

GROSS PROFIT PER UNIT SOLD:

         

New vehicle retail sales

$              1,721

 

$              1,768

 

(2.7)

Used vehicle retail sales

1,629

 

1,724

 

(5.5)

Used vehicle wholesale sales

80

 

58

 

37.9

Total used

1,134

 

1,202

 

(5.7)

Finance and insurance (per retail unit)

$              1,479

 

$              1,374

 

7.6

           

OTHER: (2)

         

SG&A expenses

$          620,825

 

$          591,946

 

4.9

SG&A as % revenues

11.1

 

11.2

   

SG&A as % gross profit

72.2

 

72.4

   

Operating margin %

3.8

 

3.8

   

 

   

(1)

Same store amounts include the results for the identical months in each period presented in the comparison, commencing with the first full month we owned the dealership and, in the case of dispositions, ending with the last full month we owned it. Same store results also include the activities of our corporate office.

   

(2)

These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.

 

           

Group 1 Automotive, Inc.

Additional Information - Same Store U.K. (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)

           
 

Three Months Ended September 30,

 

2014

 

2013

 

% Change

REVENUES:

         

New vehicle retail sales

$      134,858

 

$      136,738

 

(1.4)

Used vehicle retail sales

70,164

 

59,508

 

17.9

Used vehicle wholesale sales

21,110

 

16,960

 

24.5

Total used

91,274

 

76,468

 

19.4

Parts and service

21,272

 

17,471

 

21.8

Finance and insurance

4,797

 

4,233

 

13.3

Total

$      252,201

 

$      234,910

 

7.4

           

GROSS MARGIN %:

         

New vehicle retail sales

6.9

 

5.7

   

Used vehicle retail sales

5.9

 

6.5

   

Used vehicle wholesale sales

(0.8)

 

(1.3)

   

Total used

4.4

 

4.8

   

Parts and service

55.2

 

56.1

   

Finance and insurance

100.0

 

100.0

   

Total

11.8

 

10.9

   
           

GROSS PROFIT:

         

New vehicle retail sales

$          9,303

 

$          7,848

 

18.5

Used vehicle retail sales

4,166

 

3,848

 

8.3

Used vehicle wholesale sales

(175)

 

(213)

 

(17.8)

Total used

3,991

 

3,635

 

9.8

Parts and service

11,748

 

9,794

 

20.0

Finance and insurance

4,797

 

4,233

 

13.3

Total

$        29,839

 

$        25,510

 

17.0

           

UNITS SOLD:

         

Retail new vehicles sold

3,773

 

4,306

 

(12.4)

Retail used vehicles sold

2,649

 

2,510

 

5.5

Wholesale used vehicles sold

2,183

 

2,078

 

5.1

Total used

4,832

 

4,588

 

5.3

           

AVERAGE RETAIL SALES PRICE:

         

New vehicle retail

$        35,743

 

$        31,755

 

12.6

Used vehicle retail

$        26,487

 

$        23,708

 

11.7

           

GROSS PROFIT PER UNIT SOLD:

         

New vehicle retail sales

$          2,466

 

$          1,823

 

35.3

Used vehicle retail sales

1,573

 

1,533

 

2.6

Used vehicle wholesale sales

(80)

 

(103)

 

(22.3)

Total used

826

 

792

 

4.3

Finance and insurance (per retail unit)

$             747

 

$             621

 

20.3

           

OTHER: 

         

SG&A expenses

$        22,278

 

$        19,662

 

13.3

SG&A as % revenues

8.8

 

8.4

   

SG&A as % gross profit

74.7

 

77.1

   

Operating margin %

2.7

 

2.2

   
           
 

Nine Months Ended September 30,

 

2014

 

2013

 

% Change

REVENUES:

         

New vehicle retail sales

$      388,921

 

$      342,038

 

13.7

Used vehicle retail sales

202,968

 

162,901

 

24.6

Used vehicle wholesale sales

60,407

 

48,682

 

24.1

Total used

263,375

 

211,583

 

24.5

Parts and service

59,860

 

49,265

 

21.5

Finance and insurance

13,281

 

10,530

 

26.1

Total

$      725,437

 

$      613,416

 

18.3

           

GROSS MARGIN %:

         

New vehicle retail sales

6.8

 

6.3

   

Used vehicle retail sales

5.9

 

6.2

   

Used vehicle wholesale sales

(0.1)

 

(1.5)

   

Total used

4.5

 

4.4

   

Parts and service

55.3

 

54.5

   

Finance and insurance

100.0

 

100.0

   

Total

11.7

 

11.1

   
           

GROSS PROFIT:

         

New vehicle retail sales

$        26,514

 

$        21,629

 

22.6

Used vehicle retail sales

11,996

 

10,112

 

18.6

Used vehicle wholesale sales

(44)

 

(743)

 

(94.1)

Total used

11,952

 

9,369

 

27.6

Parts and service

33,098

 

26,862

 

23.2

Finance and insurance

13,281

 

10,530

 

26.1

Total

$        84,845

 

$        68,390

 

24.1

           

UNITS SOLD:

         

Retail new vehicles sold

10,728

 

10,738

 

(0.1)

Retail used vehicles sold

7,422

 

6,762

 

9.8

Wholesale used vehicles sold

6,102

 

5,772

 

5.7

Total used

13,524

 

12,534

 

7.9

           

AVERAGE RETAIL SALES PRICE:

         

New vehicle retail

$        36,253

 

$        31,853

 

13.8

Used vehicle retail

$        27,347

 

$        24,091

 

13.5

           

GROSS PROFIT PER UNIT SOLD:

         

New vehicle retail sales

$          2,471

 

$          2,014

 

22.7

Used vehicle retail sales

1,616

 

1,495

 

8.1

Used vehicle wholesale sales

(7)

 

(129)

 

(94.6)

Total used

884

 

747

 

18.3

Finance and insurance (per retail unit)

$             732

 

$             602

 

21.6

           

OTHER: (2)

         

SG&A expenses

$        64,254

 

$        54,117

 

18.7

SG&A as % revenues

8.9

 

8.8

   

SG&A as % gross profit

75.7

 

79.1

   

Operating margin %

2.5

 

2.0

   

 

   

(1)

Same store amounts include the results for the identical months in each period presented in the comparison, commencing with the first full month we owned the dealership and, in the case of dispositions, ending with the last full month we owned it. Same store results also include the activities of our corporate office.

   

(2)

These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.

 

Group 1 Automotive, Inc.

Additional Information - Same Store Brazil (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)

           
 

Three Months Ended September 30,

 

2014

 

2013

 

% Change

REVENUES:

         

New vehicle retail sales

$     139,640

 

$     158,705

 

(12.0)

Used vehicle retail sales

29,408

 

26,604

 

10.5

Used vehicle wholesale sales

3,965

 

9,008

 

(56.0)

Total used

33,373

 

35,612

 

(6.3)

Parts and service

20,560

 

18,966

 

8.4

Finance and insurance

3,051

 

2,571

 

18.7

Total

$     196,624

 

$     215,854

 

(8.9)

           

GROSS MARGIN %:

         

New vehicle retail sales

6.4

 

7.2

   

Used vehicle retail sales

6.3

 

6.4

   

Used vehicle wholesale sales

7.8

 

0.6

   

Total used

6.5

 

4.9

   

Parts and service

42.0

 

42.2

   

Finance and insurance

100.0

 

100.0

   

Total

11.6

 

11.0

   
           

GROSS PROFIT:

         

New vehicle retail sales

$         8,883

 

$       11,359

 

(21.8)

Used vehicle retail sales

1,862

 

1,697

 

9.7

Used vehicle wholesale sales

310

 

53

 

484.9

Total used

2,172

 

1,750

 

24.1

Parts and service

8,627

 

8,003

 

7.8

Finance and insurance

3,051

 

2,571

 

18.7

Total

$       22,733

 

$       23,683

 

(4.0)

           

UNITS SOLD:

         

Retail new vehicles sold

4,013

 

5,139

 

(21.9)

Retail used vehicles sold

1,192

 

1,343

 

(11.2)

Wholesale used vehicles sold

571

 

912

 

(37.4)

Total used

1,763

 

2,255

 

(21.8)

           

AVERAGE RETAIL SALES PRICE:

         

New vehicle retail

$       34,797

 

$       30,882

 

12.7

Used vehicle retail

$       24,671

 

$       19,809

 

24.5

           

GROSS PROFIT PER UNIT SOLD:

         

New vehicle retail sales

$         2,214

 

$         2,210

 

0.2

Used vehicle retail sales

1,562

 

1,264

 

23.6

Used vehicle wholesale sales

543

 

58

 

836.2

Total used

1,232

 

776

 

58.8

Finance and insurance (per retail unit)

$            586

 

$            397

 

47.6

           

OTHER:(2)

         

SG&A expenses

$       19,499

 

$       20,276

 

(3.8)

SG&A as % revenues

9.9

 

9.4

   

SG&A as % gross profit

85.8

 

85.6

   

Operating margin %

1.4

 

1.4

   
           
 

Nine Months Ended September 30,

 

2014

 

2013 (3)

 

% Change

REVENUES:

         

New vehicle retail sales

$     320,847

 

$     398,622

 

(19.5)

Used vehicle retail sales

65,774

 

62,501

 

5.2

Used vehicle wholesale sales

10,005

 

20,758

 

(51.8)

Total used

75,779

 

83,259

 

(9.0)

Parts and service

45,622

 

45,193

 

0.9

Finance and insurance

6,532

 

5,768

 

13.2

Total

$     448,780

 

$     532,842

 

(15.8)

           

GROSS MARGIN %:

         

New vehicle retail sales

6.4

 

7.7

   

Used vehicle retail sales

6.2

 

5.2

   

Used vehicle wholesale sales

8.0

 

5.5

   

Total used

6.4

 

5.3

   

Parts and service

42.0

 

40.5

   

Finance and insurance

100.0

 

100.0

   

Total

11.4

 

11.1

   
           

GROSS PROFIT:

         

New vehicle retail sales

$       20,598

 

$       30,661

 

(32.8)

Used vehicle retail sales

4,057

 

3,249

 

24.9

Used vehicle wholesale sales

802

 

1,143

 

(29.8)

Total used

4,859

 

4,392

 

10.6

Parts and service

19,150

 

18,293

 

4.7

Finance and insurance

6,532

 

5,768

 

13.2

Total

$       51,139

 

$       59,114

 

(13.5)

           

UNITS SOLD:

         

Retail new vehicles sold

9,343

 

11,967

 

(21.9)

Retail used vehicles sold

2,797

 

2,919

 

(4.2)

Wholesale used vehicles sold

1,292

 

2,028

 

(36.3)

Total used

4,089

 

4,947

 

(17.3)

           

AVERAGE RETAIL SALES PRICE:

         

New vehicle retail

$       34,341

 

$       33,310

 

3.1

Used vehicle retail

$       23,516

 

$       21,412

 

9.8

           

GROSS PROFIT PER UNIT SOLD:

         

New vehicle retail sales

$         2,205

 

$         2,562

 

(13.9)

Used vehicle retail sales

1,450

 

1,113

 

30.3

Used vehicle wholesale sales

621

 

564

 

10.1

Total used

1,188

 

888

 

33.8

Finance and insurance (per retail unit)

$            538

 

$            387

 

39.0

           

OTHER: (2)

         

SG&A expenses

$       46,706

 

$       48,748

 

(4.2)

SG&A as % revenues

10.4

 

9.1

   

SG&A as % gross profit

91.3

 

82.5

   

Operating margin %

0.7

 

1.7

   

 

   

(1)

Same store amounts include the results for the identical months in each period presented in the comparison, commencing with the first full month we owned the dealership and, in the case of dispositions, ending with the last full month we owned it. Same store results also include the activities of our corporate office.

(2)

These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.

(3)

Results are for the period from the date of acquisition (February 28, 2013) through September 30, 2013.

 

Group 1 Automotive, Inc.

Additional Information - Same Store Consolidated (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)

           
 

Three Months Ended September 30,

 

2014

 

2013

 

% Change

REVENUES:

         

New vehicle retail sales

$         1,395,362

 

$         1,349,044

 

3.4

Used vehicle retail sales

558,795

 

515,592

 

8.4

Used vehicle wholesale sales

92,479

 

83,424

 

10.9

Total used

651,274

 

599,016

 

8.7

Parts and service

267,569

 

249,237

 

7.4

Finance and insurance

89,401

 

81,283

 

10.0

Total

$         2,403,606

 

$         2,278,580

 

5.5

           

GROSS MARGIN %:

         

New vehicle retail sales

5.3

 

5.3

   

Used vehicle retail sales

7.2

 

7.9

   

Used vehicle wholesale sales

(1.0)

 

(1.3)

   

Total used

6.0

 

6.6

   

Parts and service

52.8

 

52.3

   

Finance and insurance

100.0

 

100.0

   

Total

14.3

 

14.2

   
           

GROSS PROFIT:

         

New vehicle retail sales

$              73,642

 

$              71,655

 

2.8

Used vehicle retail sales

40,331

 

40,600

 

(0.7)

Used vehicle wholesale sales

(956)

 

(1,060)

 

(9.8)

Total used

39,375

 

39,540

 

(0.4)

Parts and service

141,326

 

130,258

 

8.5

Finance and insurance

89,401

 

81,283

 

10.0

Total

$            343,744

 

$            322,736

 

6.5

           

UNITS SOLD:

         

Retail new vehicles sold

40,886

 

41,162

 

(0.7)

Retail used vehicles sold

26,021

 

25,374

 

2.5

Wholesale used vehicles sold

13,554

 

13,118

 

3.3

Total used

39,575

 

38,492

 

2.8

           

AVERAGE RETAIL SALES PRICE:

         

New vehicle retail

$              34,128

 

$              32,774

 

4.1

Used vehicle retail

$              21,475

 

$              20,320

 

5.7

           

GROSS PROFIT PER UNIT SOLD:

         

New vehicle retail sales

$                1,801

 

$                1,741

 

3.4

Used vehicle retail sales

1,550

 

1,600

 

(3.1)

Used vehicle wholesale sales

(71)

 

(81)

 

(12.3)

Total used

995

 

1,027

 

(3.1)

Finance and insurance (per retail unit)

$                1,336

 

$                1,222

 

9.3

           

OTHER:(2)

         

SG&A expenses

$            250,837

 

$            238,941

 

5.0

SG&A as % revenues

10.4

 

10.5

   

SG&A as % gross profit

73.0

 

74.0

   

Operating margin %

3.5

 

3.3

   
           
 

Nine Months Ended September 30,

 

2014

 

2013

 

% Change

REVENUES:

         

New vehicle retail sales

$         3,889,352

 

$         3,757,316

 

3.5

Used vehicle retail sales

1,593,144

 

1,493,801

 

6.7

Used vehicle wholesale sales

262,736

 

235,780

 

11.4

Total used

1,855,880

 

1,729,581

 

7.3

Parts and service

775,246

 

728,507

 

6.4

Finance and insurance

253,239

 

227,024

 

11.5

Total

$         6,773,717

 

$         6,442,428

 

5.1

           

GROSS MARGIN %:

         

New vehicle retail sales

5.3

 

5.6

   

Used vehicle retail sales

7.6

 

8.2

   

Used vehicle wholesale sales

1.2

 

0.9

   

Total used

6.7

 

7.2

   

Parts and service

53.0

 

52.5

   

Finance and insurance

100.0

 

100.0

   

Total

14.7

 

14.7

   
           

GROSS PROFIT:

         

New vehicle retail sales

$            207,977

 

$            211,890

 

(1.8)

Used vehicle retail sales

120,827

 

122,066

 

(1.0)

Used vehicle wholesale sales

3,174

 

2,077

 

52.8

Total used

124,001

 

124,143

 

(0.1)

Parts and service

410,615

 

382,173

 

7.4

Finance and insurance

253,239

 

227,024

 

11.5

Total

$            995,832

 

$            945,230

 

5.4

           

UNITS SOLD:

         

Retail new vehicles sold

113,518

 

112,988

 

0.5

Retail used vehicles sold

74,555

 

72,751

 

2.5

Wholesale used vehicles sold

37,597

 

36,566

 

2.8

Total used

112,152

 

109,317

 

2.6

           

AVERAGE RETAIL SALES PRICE:

         

New vehicle retail

$              34,262

 

$              33,254

 

3.0

Used vehicle retail

$              21,369

 

$              20,533

 

4.1

           

GROSS PROFIT PER UNIT SOLD:

         

New vehicle retail sales

$                1,832

 

$                1,875

 

(2.3)

Used vehicle retail sales

1,621

 

1,678

 

(3.4)

Used vehicle wholesale sales

84

 

57

 

47.4

Total used

1,106

 

1,136

 

(2.6)

Finance and insurance (per retail unit)

$                1,346

 

$                1,222

 

10.1

           

OTHER: (2)

         

SG&A expenses

$            731,785

 

$            694,811

 

5.3

SG&A as % revenues

10.8

 

10.8

   

SG&A as % gross profit

73.5

 

73.5

   

Operating margin %

3.5

 

3.5

   

 

   

(1)

Same store amounts include the results for the identical months in each period presented in the comparison, commencing with the first full month we owned the dealership and, in the case of dispositions, ending with the last full month we owned it. Same store results also include the activities of our corporate office.

   

(2)

These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - U.S.

(Unaudited)

 (Dollars in thousands, except per share amounts)

             
   

Three Months Ended September 30,

   

2014

 

2013

 

% Change

SG&A RECONCILIATION:

         
 

As reported

$      221,645

 

$      206,635

 

7.3

 

  Pre-tax adjustments:

         
 

   Catastrophic events 

(1,099)

 

(258)

   
 

   Gain on real estate and dealership transactions 

14,303

 

1,373

   
 

   Severance costs 

-

 

(256)

   
 

Adjusted SG&A (1)

$      234,849

 

$      207,494

 

13.2

             

SG&A AS % REVENUES:

         
 

Unadjusted

10.2

 

10.9

   
 

Adjusted (1)

10.8

 

11.0

   

SG&A AS % GROSS PROFIT:

         
 

Unadjusted

68.8

 

73.7

   
 

Adjusted (1)

72.9

 

74.0

   

OPERATING MARGIN %

         
 

Unadjusted

4.0

 

3.4

   
 

Adjusted (1),(2)

3.6

 

3.4

   

PRETAX MARGIN %:

         
 

Unadjusted

2.0

 

2.5

   
 

Adjusted (1), (3)

2.6

 

2.5

   
             

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$      210,182

 

$      199,332

 

5.4

 

  Pre-tax adjustments:

         
 

   Catastrophic events 

(1,099)

 

(258)

   
 

   Loss on real estate and dealership transactions 

(23)

 

-

   
 

   Severance costs 

-

 

(71)

   
 

Adjusted Same Store SG&A (1)

$      209,060

 

$      199,003

 

5.1

             

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

10.8

 

10.9

   
 

Adjusted (1)

10.7

 

10.9

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

72.2

 

72.9

   
 

Adjusted (1)

71.8

 

72.8

   

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

3.7

 

3.6

   
 

Adjusted (1), (4)

3.8

 

3.6

   
             
   

 Nine Months Ended September 30, 

   

2014

 

2013

 

 % Change 

SG&A RECONCILIATION:

         
 

As reported

$      665,547

 

$      626,939

 

6.2

 

  Pre-tax adjustments:

         
 

   Catastrophic events 

(2,775)

 

(12,158)

   
 

   Gain on real estate and dealership transactions 

14,812

 

10,196

   
 

   Severance costs 

-

 

(256)

   
 

   Acquisition costs 

-

 

(5,159)

   
 

   Legal items 

(442)

 

-

   
 

Adjusted SG&A (1)

$      677,142

 

$      619,562

 

9.3

             

SG&A AS % REVENUES:

         
 

Unadjusted

11.0

 

11.4

   
 

Adjusted (1)

11.2

 

11.3

   

SG&A AS % OF GROSS PROFIT:

         
 

Unadjusted

71.7

 

74.3

   
 

Adjusted (1)

72.9

 

73.4

   

OPERATING MARGIN %:

         
 

Unadjusted

3.8

 

3.5

   
 

Adjusted (1),(2)

3.7

 

3.7

   

PRETAX MARGIN %:

         
 

Unadjusted

2.0

 

2.5

   
 

Adjusted (1), (3)

2.7

 

2.7

   
             

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$      624,065

 

$      609,534

 

2.4

 

  Pre-tax adjustments:

         
 

   Catastrophic events 

(2,775)

 

(12,158)

   
 

   Loss on real estate and dealership transactions 

(23)

 

(200)

   
 

   Severance costs 

-

 

(71)

   
 

   Acquisition costs 

-

 

(5,159)

   
 

   Legal items 

(442)

 

-

   
 

Adjusted Same Store SG&A (1)

$      620,825

 

$      591,946

 

4.9

             

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

11.1

 

11.5

   
 

Adjusted (1)

11.1

 

11.2

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

72.6

 

74.5

   
 

Adjusted (1)

72.2

 

72.4

   

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

3.7

 

3.5

   
 

Adjusted (1), (4)

3.8

 

3.8

   

 

   

(1)

We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items.  These adjusted measures are not measures of financial performance under GAAP.  As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures.  We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations. 

   

(2)

Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $4,252 and $5,973 for the three and nine months ended September 30, 2014, and $565 and $1,174 for the three and nine months ended September 30, 2013.

   

(3)

Excludes the impact of SG&A reconciling items above, as well as loss on repurchase of long-term debt of $22,790 and $46,403 for the three and nine months ended September 30, 2014, non-cash asset impairment charges of $4,252 and $5,973 for the three and nine months ended September 30, 2014, and non-cash asset impairment charges of $565 and $1,174 for the three and nine months ended September 30, 2013.

   

(4)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $293 and $2,014 for the three and nine months ended September 30, 2014, and $532 and $1,139 for the three and nine months ended September 30, 2013, respectively.

 

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - U.K.

(Unaudited)

 (Dollars in thousands, except per share amounts)

             
   

 Nine Months Ended September 30, 

   

2014

 

2013

 

 % Change 

SG&A RECONCILIATION:

         
 

As reported

$     67,063

 

$     54,262

 

23.6

 

  Pre-tax adjustments:

         
 

   Acquisition costs 

-

 

(142)

   
 

Adjusted SG&A (1)

$     67,063

 

$     54,120

 

23.9

             

SG&A AS % REVENUES:

         
 

Unadjusted

8.9

 

8.8

   
 

Adjusted (1)

8.9

 

8.8

   

SG&A AS % OF GROSS PROFIT:

         
 

Unadjusted

76.1

 

79.3

   
 

Adjusted (1)

76.1

 

79.1

   

OPERATING MARGIN %:

         
 

Unadjusted

2.5

 

2.0

   
 

Adjusted (1),(2)

2.5

 

2.0

   

PRETAX MARGIN %:

         
 

Unadjusted

2.1

 

1.7

   
 

Adjusted (1),(2)

2.1

 

1.7

   
             

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$     64,254

 

$     54,259

 

18.4

 

  Pre-tax adjustments:

         
 

   Acquisition costs 

-

 

(142)

   
 

Adjusted Same Store SG&A (1)

$     64,254

 

$     54,117

 

18.7

             

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

8.9

 

8.8

   
 

Adjusted (1)

8.9

 

8.8

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

75.7

 

79.3

   
 

Adjusted (1)

75.7

 

79.1

   

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

2.5

 

2.0

   
 

Adjusted (1),(2)

2.5

 

2.0

   

 

   

(1)

We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items.  These adjusted measures are not measures of financial performance under GAAP.  As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures.  We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations. 

   

(2)

Excludes the impact of SG&A reconciling items above.

 

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Brazil

(Unaudited)

 (Dollars in thousands, except per share amounts)

             
   

Three Months Ended September 30,

   

2014

 

2013

 

% Change

SG&A RECONCILIATION:

         
 

As reported

$     20,313

 

$     20,572

 

(1.3)

 

  Pre-tax adjustments:

         
 

   Severance costs 

(393)

 

(295)

   
 

Adjusted SG&A (1)

$     19,920

 

$     20,277

 

(1.8)

             

SG&A AS % REVENUES:

         
 

Unadjusted

10.2

 

9.5

   
 

Adjusted (1)

10.0

 

9.4

   

SG&A AS % GROSS PROFIT:

         
 

Unadjusted

88.6

 

86.9

   
 

Adjusted (1)

86.9

 

85.6

   

OPERATING MARGIN %

         
 

Unadjusted

(1.6)

 

1.2

   
 

Adjusted (1),(2)

1.2

 

1.4

   

PRETAX MARGIN %:

         
 

Unadjusted

(2.6)

 

0.2

   
 

Adjusted (1),(3)

0.2

 

0.3

   
             

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$     19,892

 

$     20,571

 

(3.3)

 

  Pre-tax adjustments:

         
 

   Severance costs 

(393)

 

(295)

   
 

Adjusted SAME STORE SG&A (1)

$     19,499

 

$     20,276

 

(3.8)

             

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

10.1

 

9.5

   
 

Adjusted (1)

9.9

 

9.4

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

87.5

 

86.9

   
 

Adjusted (1)

85.8

 

85.6

   

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

(1.4)

 

1.2

   
 

Adjusted (1),(2)

1.4

 

1.4

   
             
   

 Nine Months Ended September 30, 

   

2014

 

2013 (4)

 

 % Change 

SG&A RECONCILIATION:

         
 

As reported

$     61,151

 

$     50,254

 

21.7

 

  Pre-tax adjustments:

         
 

   Severance costs 

(393)

 

(295)

   
 

   Acquisition costs 

-

 

(1,211)

   
 

   Foreign transaction tax 

(416)

 

-

   
 

Adjusted SG&A (1)

$     60,342

 

$     48,748

 

23.8

             

SG&A AS % REVENUES:

         
 

Unadjusted

10.6

 

9.4

   
 

Adjusted (1)

10.5

 

9.1

   

SG&A AS % OF GROSS PROFIT:

         
 

Unadjusted

93.4

 

85.0

   
 

Adjusted (1)

92.2

 

82.5

   

OPERATING MARGIN %:

         
 

Unadjusted

(0.4)

 

1.5

   
 

Adjusted (1),(2)

0.6

 

1.7

   

PRETAX MARGIN %:

         
 

Unadjusted

(1.4)

 

0.4

   
 

Adjusted (1),(3)

(0.4)

 

0.9

   
             

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$     47,515

 

$     50,254

 

(5.5)

 

  Pre-tax adjustments:

         
 

   Severance costs 

(393)

 

(295)

   
 

   Acquisition costs 

-

 

(1,211)

   
 

   Foreign transaction tax 

(416)

 

-

   
 

Adjusted SAME STORE SG&A (1)

$     46,706

 

$     48,748

 

(4.2)

             

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

10.6

 

9.4

   
 

Adjusted (1)

10.4

 

9.1

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

92.9

 

85.0

   
 

Adjusted (1)

91.3

 

82.5

   

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

(0.6)

 

1.5

   
 

Adjusted (1),(2)

0.7

 

1.7

   

 

   

(1)

We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items.  These adjusted measures are not measures of financial performance under GAAP.  As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures.  We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations. 

   

(2)

Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $5,121 for the three and nine months ended September 30, 2014.

   

(3)

Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $5,121 for the three and nine months ended September 30, 2014, and other expense, net of $789, for the period from the date of acquisition (February 28, 2013) through September 30, 2013.

   

(4)

 Results are for the period from the date of acquisition (February 28, 2013) through September 30, 2013. 

 

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - CONSOLIDATED

(Unaudited)

 (Dollars in thousands, except per share amounts)

             
   

Three Months Ended September 30,

   

2014

 

2013

 

% Change

             

NET INCOME RECONCILIATION:

         
 

As reported

$        26,162

 

$        32,765

 

(20.2)

 

  After-tax adjustments:

         
 

  Catastrophic events(5)

671

 

158

   
 

  Gain on real estate and dealership transactions(6)

(8,572)

 

(230)

   
 

  Severance costs (7)

388

 

454

   
 

  Acquisition costs including related tax impact(8)

-

 

(630)

   
 

  Non-cash asset impairment(11)

6,559

 

349

   
 

  Loss on repurchase of long-term debt(12)

17,934

 

-

   
 

  Tax impact of foreign deductible goodwill

(3,358)

 

-

   
 

Adjusted net income (1)

$        39,784

 

$        32,866

 

21.0

             

ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED

         
 

COMMON SHARES RECONCILIATION:

         
 

Adjusted net income

$        39,784

 

$        32,866

 

21.0

 

Less: Adjusted earnings allocated to participating securities

1,520

 

1,324

 

14.8

 

Adjusted net income available to diluted common shares

$        38,264

 

$        31,542

 

21.3

             

 DILUTED INCOME PER COMMON SHARE RECONCILIATION: 

         
 

As reported

$            1.03

 

1.19

 

(13.4)

 

  After-tax adjustments:

         
 

   Catastrophic events 

0.03

 

0.01

   
 

   Gain on real estate and dealership transactions 

(0.34)

 

(0.01)

   
 

   Severance costs 

0.01

 

0.02

   
 

   Acquisition costs including related tax impact 

-

 

(0.02)

   
 

   Non-cash asset impairment 

0.26

 

0.01

   
 

   Loss on repurchase of long-term debt 

0.71

 

-

   
 

   Tax impact of foreign deductible goodwill 

(0.13)

 

-

   
 

Adjusted diluted income per share (1)

$            1.57

 

$            1.20

 

30.8

             

SG&A RECONCILIATION:

         
 

As reported

$      264,233

 

$      246,863

 

7.0

 

  Pre-tax adjustments:

         
 

   Catastrophic events 

(1,099)

 

(258)

   
 

   Gain on real estate and dealership transactions 

14,303

 

1,373

   
 

   Severance costs 

(393)

 

(551)

   
 

Adjusted SG&A (1)

$      277,044

 

$      247,427

 

12.0

             

SG&A AS % REVENUES:

         
 

Unadjusted

10.1

 

10.5

   
 

Adjusted (1)

10.5

 

10.6

   

SG&A AS % GROSS PROFIT:

         
 

Unadjusted

70.5

 

74.9

   
 

Adjusted (1)

73.9

 

75.1

   

OPERATING MARGIN %

         
 

Unadjusted

3.4

 

3.1

   
 

Adjusted (1), (2)

3.3

 

3.1

   

PRETAX MARGIN %:

         
 

Unadjusted

1.7

 

2.2

   
 

Adjusted (1), (3)

2.4

 

2.2

   
             

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$      252,352

 

$      239,565

 

5.3

 

  Pre-tax adjustments:

         
 

   Catastrophic events 

(1,099)

 

(258)

   
 

   Loss on real estate and dealership transactions 

(23)

 

-

   
 

   Severance costs 

(393)

 

(366)

   
 

Adjusted Same Store SG&A (1)

$      250,837

 

$      238,941

 

5.0

             

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

10.5

 

10.5

   
 

Adjusted (1)

10.4

 

10.5

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

73.4

 

74.2

   
 

Adjusted (1)

73.0

 

74.0

   

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

3.2

 

3.2

   
 

Adjusted (1), (4)

3.5

 

3.3

   
             
   

 Nine Months Ended September 30, 

   

2014

 

2013

 

 % Change 

NET INCOME RECONCILIATION:

         
 

As reported

$        74,327

 

$        92,271

 

(19.4)

 

  After-tax adjustments:

         
 

  Catastrophic events(5)

1,710

 

7,419

   
 

  Gain on real estate and dealership transactions(6)

(8,887)

 

(5,376)

   
 

  Severance costs (7)

388

 

454

   
 

  Acquisition costs including related tax impact(8)

-

 

6,337

   
 

  Legal items (9)

274

 

-

   
 

  Foreign transaction tax(10)

274

 

-

   
 

  Non-cash asset impairment(11)

7,626

 

718

   
 

  Loss on repurchase of long-term debt(12)

38,711

 

-

   
 

  Tax impact of foreign deductible goodwill

(3,358)

 

-

   
 

Adjusted net income (1)

$      111,065

 

$      101,823

 

9.1

             

ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED

         
 

COMMON SHARES RECONCILIATION:

         
 

Adjusted net income

$      111,065

 

$      101,823

 

9.1

 

Less: Adjusted earnings allocated to participating securities

4,126

 

4,241

 

(2.7)

 

Adjusted net income available to diluted common shares

$      106,939

 

$        97,582

 

9.6

             

 DILUTED INCOME PER COMMON SHARE RECONCILIATION: 

         
 

As reported

$            2.82

 

$            3.52

 

(19.9)

 

  After-tax adjustments:

         
 

   Catastrophic events 

0.07

 

0.28

   
 

   Gain on real estate and dealership transactions 

(0.33)

 

(0.21)

   
 

   Severance costs 

0.01

 

0.02

   
 

   Acquisition costs including related tax impact 

-

 

0.24

   
 

   Legal items 

0.01

 

-

   
 

   Foreign transaction tax 

0.01

 

-

   
 

   Non-cash asset impairment 

0.29

 

0.03

   
 

   Loss on repurchase of long-term debt 

1.47

 

-

   
 

   Tax impact of foreign deductible goodwill 

(0.13)

 

-

   
 

Adjusted diluted income per share (1)

$            4.22

 

$            3.88

 

8.8

             
             

SG&A RECONCILIATION:

         
 

As reported

$      793,761

 

$      731,455

 

8.5

 

  Pre-tax adjustments:

         
 

   Catastrophic events 

(2,775)

 

(12,158)

   
 

   Gain on real estate and dealership transactions 

14,812

 

10,196

   
 

   Severance costs 

(393)

 

(551)

   
 

   Acquisition costs 

-

 

(6,512)

   
 

   Legal items 

(442)

 

-

   
 

   Foreign transaction tax 

(416)

 

-

   
 

Adjusted SG&A (1)

$      804,547

 

$      722,430

 

11.4

             

SG&A AS % REVENUES:

         
 

Unadjusted

10.7

 

11.0

   
 

Adjusted (1)

10.9

 

10.9

   

SG&A AS % OF GROSS PROFIT:

         
 

Unadjusted

73.4

 

75.3

   
 

Adjusted (1)

74.4

 

74.4

   

OPERATING MARGIN %:

         
 

Unadjusted

3.3

 

3.2

   
 

Adjusted (1), (2)

3.3

 

3.3

   

PRETAX MARGIN %:

         
 

Unadjusted

1.8

 

2.3

   
 

Adjusted (1), (3)

2.4

 

2.5

   
             

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$      735,834

 

$      714,047

 

3.1

 

  Pre-tax adjustments:

         
 

 Catastrophic events 

(2,775)

 

(12,158)

   
 

 Loss on real estate and dealership transactions 

(23)

 

(200)

   
 

 Severance costs 

(393)

 

(366)

   
 

 Acquisition costs 

-

 

(6,512)

   
 

 Legal items 

(442)

 

-

   
 

 Foreign transaction tax 

(416)

 

-

   
 

Adjusted Same Store SG&A (1)

$      731,785

 

$      694,811

 

5.3

             

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

10.9

 

11.1

   
 

Adjusted (1)

10.8

 

10.8

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

73.9

 

75.5

   
 

Adjusted (1)

73.5

 

73.5

   

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

3.3

 

3.2

   
 

Adjusted (1), (4)

3.5

 

3.5

   

 

   

(1)

We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items.  These adjusted measures are not measures of financial performance under GAAP.  As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures.  We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations. 

   

(2)

Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges for all periods.

   

(3)

Excludes the impact of SG&A reconciling items above, non-cash asset impairment charges for all periods, as well as loss on repurchase of long-term debt of $22,790 and $46,403 for the three and nine months ended September 30, 2014, respectively, and other expense, net of $789, for the nine months ended September 30, 2013.

   

(4)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $5,414 and $7,135 for the three and nine months ended September 30, 2014, respectively, and $532 and $1,139 for the three and nine months ended September 30, 2013, respectively.

   

(5)

Adjustment is net of tax benefit of $428 and $1,065 for the three and nine months ended September 30, 2014, respectively, and $100 and $4,739 for the three and nine months ended September 30, 2013, respectively, calculated utilizing the applicable federal and state tax rates for the adjustment.

   

(6)

Adjustment is net of tax provision of $5,731 and $5,925 for the three and nine months ended September 30, 2014, respectively, and $1,143 and $4,820 for the three and nine months ended September 30, 2013, respectively, calculated utilizing the applicable federal and state tax rates for the adjustment.

   

(7)

Adjustment is net of tax benefit of $5 for the three and nine months ended September 30, 2014, and $97 for the three and nine months ended September 30, 2013, calculated utilizing the applicable federal and state tax rates for the adjustment.

   

(8)

Adjustment is net of tax benefit of $630 and $963 for the three and nine months ended September 30, 2013, respectively, calculated utilizing the applicable federal and state tax rates for the adjustment.

   

(9)

Adjustment is net of tax benefit of $168 for the nine months ended September 30, 2014, calculated utilizing the applicable federal and state tax rates for the adjustment.

   

(10)

Adjustment is net of tax benefit of $141 for the nine months ended September 30, 2014, calculated utilizing the applicable federal and state tax rates for the adjustment. 

   

(11)

Adjustment is net of tax benefit of $2,815 and $3,469 for the three and nine months ended September 30, 2014, respectively, and $216 and $456 for the three and nine months ended September 30, 2013, respectively, calculated utilizing the applicable federal and state tax rates for the adjustment.

   

(12)

Adjustment is net of tax benefit of $4,856 and $7,692 for the three and nine months ended September 30, 2014, respectively, calculated utilizing the applicable federal and state tax rates for the adjustment.

 

 

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SOURCE Group 1 Automotive, Inc.