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Group 1 Automotive

800 Gessner
Houston, TX 77024

  • Sales: (713) 647-5700
Investor Relations

Group 1 Automotive Reports Fourth Quarter and Full Year 2016 Financial Results

Sets Record Revenue of $10.9 Billion for 2016

HOUSTON, Feb. 2, 2017 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), ("Group 1" or the "Company"), an international, Fortune 500 automotive retailer, today reported 2016 fourth quarter net income of $30.8 million, diluted earnings per common share of $1.44, adjusted net income (a non-GAAP measure) of $37.3 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $1.74.

As shown in the attached non-GAAP reconciliation tables, the 2016 fourth quarter adjusted results exclude approximately $6.4 million of net after-tax adjustments, or $0.30 per share, for non-core items. These adjustments primarily consist of non-cash asset impairment charges of approximately $12.8 million after-tax, or $0.59 per share; and severance costs of approximately $1.2 million after-tax, or $0.06 per share. These adjustments were partially offset by gains related to both a settlement with an OEM of approximately $7.3 million after-tax, or $0.34 per share; and real estate and dealership transactions of approximately $0.3 million after-tax, or $0.01 per share.

For the full year of 2016, net income increased 56.5 percent from the comparable prior-year period, to $147.1 million; and diluted earnings per common share increased 71.0 percent, to $6.67. Full year 2016 adjusted net income decreased 1.1 percent, to $163.7 million; and adjusted diluted earnings per common share increased 8.0 percent, to an all-time high of $7.42. Total revenue grew 2.4 percent (4.7 percent on a constant currency basis), to a record $10.9 billion.

"We are pleased with our overall performance in 2016 given the economic and political challenges we faced in each of our regions. Despite those headwinds, we delivered record revenue of $10.9 billion and grew adjusted diluted earnings per share 8 percent to a new, all-time record of $7.42. We closed the year on a strong note, with fourth quarter adjusted EPS growth of 15 percent over last year, reflecting improved new vehicle margins and strong cost control," said Earl J. Hesterberg, Group 1's president and chief executive officer. "In addition, the progress we delivered on both our cost structure during the fourth quarter and the reduction of our U.S. new vehicle inventory, which ended the Quarter with a 65 day supply, has us well positioned as we enter 2017."

Consolidated Results for Fourth Quarter 2016 (year-over-year comparable basis)
For ease of comparison, we have included constant currency metrics (a non-GAAP measure) both below (shown in parenthesis) and in the financial tables that follow:

  • Total revenue was flat at $2.7 billion (2.6 percent).
  • Total gross profit grew 2.4 percent (4.4 percent), to $389.2 million.
  • New vehicle revenues decreased 1.7 percent (0.8 percent). New vehicle gross profit improved 3.7 percent (6.4 percent), to $83.1 million. While total new vehicles sales volume decreased, new vehicle gross profit per retail unit (PRU) grew 7.2 percent (10.1 percent), to $1,976.
  • Retail used vehicle revenues increased 0.8 percent (3.6 percent) on 0.5 percent higher unit sales. Retail used vehicle gross profit decreased 4.1 percent ((2.2) percent), to $39.0 million.
  • Parts and service gross profit increased 4.4 percent (6.5 percent) on revenue growth of 4.6 percent (6.5 percent). Same Store parts and service gross profit increased 3.6 percent (5.0 percent) on revenue growth of 4.0 percent (5.1 percent). U.S. Same Store parts and service gross profit increased 4.1 percent on revenue growth of 5.1 percent.
  • Finance and Insurance (F&I) gross profit PRU increased 4.8 percent (6.5 percent), to $1,440. U.S. F&I gross profit PRU increased $129, or 8.5 percent, to an all-time record of $1,644.
  • Selling, General and Administrative (SG&A) expenses as a percent of gross profit improved 190 basis points, to 71.7 percent. Adjusted SG&A expenses as a percent of gross profit improved 90 basis points, to 74.4 percent.

 

Consolidated Results for Full Year 2016 (year-over-year comparable basis)

  • Total revenue increased 2.4 percent (4.7 percent), to a record $10.9 billion.
  • Total gross profit grew 4.0 percent (5.7 percent).
  • New vehicle gross profit increased 3.6 percent (6.2 percent) on 0.7 percent (3.1 percent) higher revenues, as the Company retailed 172,053 new vehicles in 2016.
  • Retail used vehicle gross profit was 1.7 percent (3.3 percent) higher on a 4.5 percent (6.7 percent) revenue increase, as the Company retailed 129,131 used units in 2016, a 4.0 percent increase over 2015 levels.
  • Parts and service gross profit rose 5.9 percent (7.7 percent) on 6.3 percent (8.1 percent) higher revenues.
  • F&I revenues rose 2.9 percent (4.1 percent) on 0.8 percent more retail unit sales; U.S. F&I gross PRU was $1,599, an increase of $74 over 2015.
  • SG&A expenses as a percent of gross profit increased 30 basis points, to 73.4 percent. Adjusted U.S. SG&A expenses as a percent of gross profit improved 40 basis points, to 71.7 percent.
  • Operating margin improved 50 basis points to 3.1 percent. Adjusted operating margin remained flat at 3.4 percent.

 

Segment Results for Fourth Quarter 2016 (year-over-year comparable basis)

  • United States:
    The Company's U.S. operations accounted for 81.2 percent of total revenues and 85.1 percent of total gross profit. Total U.S. revenues were $2.2 billion, a decrease of 4.1 percent, driven by a 6.8 percent decrease in retail new vehicle revenue. While new vehicle sales volume decreased, new vehicle gross profit PRU sold grew $225, or 12.3 percent per unit, to $2,049; and total gross profit of $331.3 million was only down 0.8 percent. New vehicle inventory improved 9 days from third-quarter levels and ended the quarter at 65 days' supply.

    SG&A expenses as a percent of gross profit improved 330 basis points to 68.6 percent and operating margin improved 90 basis points to 3.8 percent. Adjusted SG&A expenses as a percent of gross profit improved 210 basis points, to 71.9 percent. Adjusted operating margin improved 40 basis points to 3.8 percent.
     
  • United Kingdom:
    The Company's U.K. operations accounted for 14.5 percent of total revenues and 11.4 percent of total gross profit. Total U.K. revenues increased 35.9 percent (66.1 percent), to $387.5 million, and gross profit increased 33.3 percent (62.4 percent), to $44.4 million. On a constant currency basis, Same Store total revenue increased 15.1 percent, driven by revenue growth of 21.3 percent in new vehicles, 18.0 percent in F&I, and 7.7 percent in parts and service.

    Same Store SG&A expenses as a percent of gross profit increased 90 basis points to 82.6 percent and operating margin decreased 10 basis points to 1.6 percent.
     
  • Brazil:
    The Company's Brazilian operations were profitable during the fourth quarter and accounted for 4.3 percent of total revenues and 3.5 percent of total gross profit. The Company's Same Store new vehicle revenue declined 25.6 percent on a constant currency basis in a continued weak economic environment. Year-to-date, Brazil's new vehicle industry volumes have declined about 20 percent. On a constant currency basis, fourth quarter Same Store total revenue was down 19.1 percent, as F&I gross profit PRU growth of 19.7 percent partially offset the decline in new and used vehicles.

    The Company continues to improve its used vehicle operations in Brazil. On a Same Store constant currency basis, used vehicle retail margins increased 360 basis points to 7.1 percent and total used vehicle gross profit grew 97.3 percent.

 

Share Repurchase Authorization

For the full year of 2016, the Company repurchased 2,282,579 shares, or approximately 10 percent of its outstanding common shares, at an average price per common share of $55.90 for a total of $127.6 million. As of February 1, 2017, $22.4 million remains available under the Company's prior common stock share repurchase authorization.

Future repurchases 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, and subject to Board approval and covenant restrictions.

Corporate Development

As previously announced in October 2016, the Company acquired the Ford Basingstoke and Ford Newbury stores in the U.K., which were rebranded as Think Ford Basingstoke and Think Ford Newbury. These franchises are expected to generate approximately $65 million in annualized revenues.

During October 2016, the Company announced the divestiture of the Honda of Van Nuys store in California. Also during the fourth quarter, the Company disposed of Spire Skoda in the U.K. These franchises generated approximately $80 million in trailing-twelve-month revenues.

During 2016, the Company acquired a total of 21 franchises, which are expected to generate an estimated $660 million in annual revenues. The Company disposed of 10 franchises that generated approximately $240 million in trailing-twelve-month revenues.

Subsequently, in January 2017, the Company acquired a BMW motorcycle franchise in the state of Paraná in Brazil. The franchise, which is expected to generate approximately $5 million in annual revenues, will be moved into one of our existing BMW locations to expand dealership scale. On February 1, 2017, the Company disposed of its remaining two Nissan stores in Brazil, which generated approximately $25 million in trailing-twelve-month revenues.

Fourth Quarter 2016 Earnings Conference Call Details

Group 1's senior management will host a conference call today at 10 a.m. ET to discuss the fourth 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:

6564959

 

A telephonic replay will be available following the call through February 9, 2017 by dialing:

Domestic:

1-877-344-7529

International:

1-412-317-0088

Replay ID:

10100191

 

About Group 1 Automotive, Inc.
Group 1 owns and operates 157 automotive dealerships, 208 franchises, and 38 collision centers in the United States, the United Kingdom and Brazil that offer 31 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service contracts; provides automotive maintenance and repair services; and sells vehicle parts.

Investors please visit www.group1corp.com, www.group1auto.com, www.group1collision.com, www.facebook.com/group1auto, and www.twitter.com/group1auto, where Group 1 discloses additional information about the Company, its business, and its results of operations.

FORWARD-LOOKING STATEMENTS
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.

NON-GAAP FINANCIAL MEASURES
In addition to evaluating the financial condition and results of our operations in accordance with GAAP, from time to time our management evaluates and analyzes results and any impact on the Company of strategic decisions and actions relating to, among other things, cost reduction, growth, and profitability improvement initiatives, and other events outside of normal, or "core," business and operations, by considering alternative financial measures not prepared in accordance with GAAP. This includes evaluating measures such as adjusted selling, general and administrative expenses, adjusted net income and adjusted diluted earnings per share. These adjusted measures are not measures of financial performance under U.S. GAAP, but are instead considered non-GAAP financial performance measures. Non-GAAP measures do not have definitions under GAAP and may be defined differently by and not be comparable to similarly titled measures used by other companies. As a result, any non-GAAP financial measures considered and evaluated by management are reviewed in conjunction with a review of the most directly comparable measures calculated in accordance with GAAP. We caution investors not to place undue reliance on such non-GAAP measures, but also to consider them with the most directly comparable GAAP measures. In our evaluation of results from time to time, we exclude items that do not arise directly from core operations, such as non-cash asset impairment charges, gains and losses on dealership franchise or real estate transactions, and catastrophic weather events such as hail storms, hurricanes, and snow storms. Because these non-core charges and gains materially affect the Company's financial condition or results in the specific period in which they are recognized, management also evaluates, and makes resource allocation and performance evaluation decisions based on, the related non-GAAP measures excluding such items.

In addition to using such non-GAAP measures to evaluate results in a specific period, management believes that such measures may provide more complete and consistent comparisons of operational performance on a period-over-period historical basis and a better indication of expected future trends. Our management also uses these adjusted measures in conjunction with U.S. GAAP financial measures to assess our business, including communication with our Board of Directors, investors and industry analysts concerning financial performance. We disclose these non-GAAP measures, and the related reconciliations, because we believe investors use these metrics in evaluating longer-term period-over-period performance, and to allow investors to better understand and evaluate the information used by management to assess operating performance. The exclusion of certain expenses in the calculation of non-GAAP financial measures should not be construed as an inference that these costs are unusual or infrequent. We anticipate excluding these expenses in the future presentation of our non-GAAP financial measures.

In addition, we evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our underlying business and results of operations, consistent with how we evaluate our performance. We calculate constant currency percentages by converting our current period reported results for entities reporting in currencies other than United States dollars using comparative period exchange rates rather than the actual exchange rates in effect during the respective periods. The constant currency performance measures should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with U.S. GAAP.

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 December 31, 

 

2016

 

2015

 

% Increase/

(Decrease)

REVENUES:

         

New vehicle retail sales

$ 1,507,513

 

$ 1,533,108

 

(1.7)

Used vehicle retail sales

651,144

 

645,844

 

0.8

Used vehicle wholesale sales

99,774

 

95,064

 

5.0

Parts and service

310,966

 

297,254

 

4.6

Finance, insurance and other, net

104,235

 

101,332

 

2.9

Total revenues

2,673,632

 

2,672,602

 

0.0

           

COST OF SALES:

         

New vehicle retail sales

1,424,445

 

1,452,982

 

(2.0)

Used vehicle retail sales

612,098

 

605,137

 

1.2

Used vehicle wholesale sales

103,754

 

96,896

 

7.1

Parts and service

144,154

 

137,454

 

4.9

Total cost of sales

2,284,451

 

2,292,469

 

(0.3)

           

GROSS PROFIT

389,181

 

380,133

 

2.4

           

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

279,071

 

279,785

 

(0.3)

           

DEPRECIATION AND AMORTIZATION EXPENSE

13,166

 

11,798

 

11.6

           

ASSET IMPAIRMENTS

20,027

 

85,606

 

(76.6)

           

OPERATING INCOME

76,917

 

2,944

 

2,512.7

           

OTHER EXPENSE:

         

Floorplan interest expense

(11,189)

 

(10,216)

 

9.5

Other interest expense, net

(17,208)

 

(14,843)

 

15.9

INCOME (LOSS) BEFORE INCOME TAXES

48,520

 

(22,115)

 

319.4

           

PROVISION FOR INCOME TAXES

(17,692)

 

(11,272)

 

57.0

           

NET INCOME (LOSS)

$      30,828

 

$    (33,387)

 

192.3

Less: Earnings (loss) allocated to participating securities

$        1,220

 

$      (1,279)

 

195.4

Earnings (loss) available to diluted common shares

$      29,608

 

$    (32,108)

 

192.2

DILUTED EARNINGS (LOSS) PER SHARE

$          1.44

 

$        (1.41)

 

202.1

Weighted average dilutive common shares outstanding

20,592

 

22,718

 

(9.4)

Weighted average participating securities

858

 

897

 

(4.3)

Total weighted average shares outstanding

21,450

 

23,615

 

(9.2)

           
 

 Twelve Months Ended December 31, 

 

2016

 

2015

 

% Increase/

(Decrease)

REVENUES:

         

New vehicle retail sales

$ 6,046,075

 

$ 6,001,306

 

0.7

Used vehicle retail sales

2,757,713

 

2,638,969

 

4.5

Used vehicle wholesale sales

401,863

 

397,251

 

1.2

Parts and service

1,261,307

 

1,186,193

 

6.3

Finance, insurance and other, net

420,654

 

408,786

 

2.9

Total revenues

10,887,612

 

10,632,505

 

2.4

           

COST OF SALES:

         

New vehicle retail sales

5,729,697

 

5,695,829

 

0.6

Used vehicle retail sales

2,575,234

 

2,459,499

 

4.7

Used vehicle wholesale sales

406,305

 

399,171

 

1.8

Parts and service

581,307

 

544,034

 

6.9

Total cost of sales

9,292,543

 

9,098,533

 

2.1

           

GROSS PROFIT

1,595,069

 

1,533,972

 

4.0

           

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

1,170,763

 

1,120,833

 

4.5

           

DEPRECIATION AND AMORTIZATION EXPENSE

51,234

 

47,239

 

8.5

           

ASSET IMPAIRMENTS

32,838

 

87,562

 

(62.5)

           

OPERATING INCOME

340,234

 

278,338

 

22.2

           

OTHER EXPENSE:

         

Floorplan interest expense

(44,927)

 

(39,264)

 

14.4

Other interest expense, net

(67,936)

 

(56,903)

 

19.4

INCOME BEFORE INCOME TAXES

227,371

 

182,171

 

24.8

           

PROVISION FOR INCOME TAXES

(80,306)

 

(88,172)

 

(8.9)

           

NET INCOME

$    147,065

 

$      93,999

 

56.5

Less: Earnings allocated to participating securities

$        5,869

 

$        3,595

 

63.3

Earnings available to diluted common shares

$    141,196

 

$      90,404

 

56.2

DILUTED EARNINGS PER SHARE

$          6.67

 

$          3.90

 

71.0

Weighted average dilutive common shares outstanding

21,170

 

23,152

 

(8.6)

Weighted average participating securities

886

 

924

 

(4.1)

Total weighted average shares outstanding

22,056

 

24,076

 

(8.4)

 

Group 1 Automotive, Inc.

Consolidated Balance Sheets

(Dollars in thousands)

             
   

December 31,

2016

 

December 31,

2015

 

% Increase/

(Decrease)

 ASSETS: 

 

(Unaudited)

       

 CURRENT ASSETS: 

           

 Cash and cash equivalents 

 

$            20,992

 

$            13,037

 

61.0

 Contracts in transit and vehicle receivables, net 

 

269,508

 

252,438

 

6.8

 Accounts and notes receivable, net 

 

173,364

 

157,768

 

9.9

 Inventories, net 

 

1,651,815

 

1,737,751

 

(4.9)

 Prepaid expenses and other current assets 

 

34,908

 

27,376

 

27.5

 Total current assets 

 

2,150,587

 

2,188,370

 

(1.7)

 PROPERTY AND EQUIPMENT, net 

 

1,125,883

 

1,033,981

 

8.9

 GOODWILL AND INTANGIBLE FRANCHISE RIGHTS 

 

1,161,639

 

1,162,503

 

(0.1)

 OTHER ASSETS 

 

23,794

 

11,862

 

100.6

 Total assets 

 

$       4,461,903

 

$       4,396,716

 

1.5

             

 LIABILITIES AND STOCKHOLDERS' EQUITY: 

           

 CURRENT LIABILITIES: 

           

 Floorplan notes payable - credit facility and other 

 

$       1,136,654

 

$       1,265,719

 

(10.2)

 Offset account related to floorplan notes payable - credit facility 

 

(59,626)

 

(110,759)

 

(46.2)

 Floorplan notes payable - manufacturer affiliates 

 

392,661

 

389,071

 

0.9

 Offset account related to floorplan notes payable - manufacturer affiliates 

 

(25,500)

 

(25,500)

 

0.0

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

 

72,419

 

54,991

 

31.7

 Current liabilities from interest rate risk management activities 

 

3,941

 

 

100.0

 Accounts payable 

 

356,099

 

280,423

 

27.0

 Accrued expenses 

 

176,469

 

185,323

 

(4.8)

 Total current liabilities 

 

2,053,117

 

2,039,268

 

0.7

 5.00% SENIOR NOTES (principal of $550,000 at December 31, 2016 and December 31, 2015, respectively) 

 

540,465

 

538,933

 

0.3

 5.25% SENIOR NOTES (principal of $300,000 at December 31, 2016 and December 31, 2015, respectively) 

 

295,591

 

295,156

 

0.1

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

 

333,326

 

317,290

 

5.1

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

 

43,427

 

48,155

 

(9.8)

 DEFERRED INCOME TAXES 

 

161,502

 

136,644

 

18.2

 LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES 

 

20,470

 

31,153

 

(34.3)

 OTHER LIABILITIES 

 

83,805

 

71,865

 

16.6

 STOCKHOLDERS' EQUITY: 

           

 Common stock 

 

257

 

257

 

-

 Additional paid-in capital 

 

290,899

 

291,092

 

(0.1)

 Retained earnings 

 

1,053,301

 

926,169

 

13.7

 Accumulated other comprehensive loss 

 

(146,944)

 

(137,984)

 

6.5

 Treasury stock 

 

(267,313)

 

(161,282)

 

65.7

 Total stockholders' equity 

 

$          930,200

 

$          918,252

 

1.3

 Total liabilities and stockholders' equity 

 

$       4,461,903

 

$       4,396,716

 

1.5

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

                   
     

Three Months Ended

 

Twelve Months Ended

     

December 31,

 

December 31,

     

2016 (%)

 

2015 (%)

 

2016 (%)

 

2015 (%)

NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:

             

Region

Geographic Market

               

East

Massachusetts

 

4.6

 

5.7

 

4.8

 

6.0

 

Georgia

 

4.5

 

4.4

 

4.3

 

4.5

 

Florida

 

2.8

 

2.6

 

2.6

 

2.1

 

New Hampshire

 

2.0

 

2.0

 

1.9

 

2.0

 

New Jersey

 

1.7

 

2.2

 

1.6

 

2.3

 

South Carolina

 

1.6

 

1.5

 

1.4

 

1.4

 

Louisiana

 

1.5

 

1.5

 

1.5

 

1.6

 

Mississippi

 

1.3

 

1.3

 

1.5

 

1.5

 

Alabama

 

0.9

 

0.9

 

0.9

 

0.8

 

Maryland

 

0.5

 

0.6

 

0.5

 

0.5

     

21.4

 

22.7

 

21.0

 

22.7

                   

West

Texas

 

37.1

 

39.0

 

36.5

 

38.7

 

California

 

8.6

 

10.0

 

9.1

 

9.7

 

Oklahoma

 

6.4

 

7.5

 

6.8

 

7.6

 

Kansas

 

1.7

 

2.0

 

1.8

 

2.1

 

Louisiana

 

0.5

 

0.6

 

0.6

 

0.7

     

54.3

 

59.1

 

54.8

 

58.8

                   

International

United Kingdom

 

18.7

 

9.9

 

18.4

 

10.7

 

Brazil

 

5.6

 

8.3

 

5.8

 

7.8

     

100.0

 

100.0

 

100.0

 

100.0

                   

NEW VEHICLE UNIT SALES BRAND MIX:

               

Toyota/Scion/Lexus

 

25.8

 

26.2

 

24.9

 

26.5

BMW/MINI

 

14.4

 

12.3

 

13.5

 

11.6

Volkswagen/Audi/Porsche

 

11.2

 

6.7

 

11.0

 

6.9

Ford/Lincoln

 

10.8

 

10.9

 

11.0

 

11.4

Honda/Acura

 

8.8

 

11.0

 

9.9

 

10.9

Nissan

 

7.5

 

8.1

 

7.1

 

8.4

Chevrolet/GMC/Buick/Cadillac

 

7.0

 

8.0

 

7.4

 

7.6

Mercedes-Benz/smart/Sprinter

 

4.8

 

4.9

 

4.3

 

4.3

Chrysler/Dodge/Jeep/RAM

 

3.6

 

4.4

 

4.0

 

4.6

Hyundai/Kia

 

3.6

 

5.0

 

4.2

 

5.6

Other

 

2.5

 

2.5

 

2.7

 

2.2

     

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 December 31,

   

2016

 

2015

 

% Increase/

(Decrease)

REVENUES:

           

New vehicle retail sales

 

$ 1,207,922

 

$ 1,295,513

 

(6.8)

Used vehicle retail sales

 

532,913

 

542,796

 

(1.8)

Used vehicle wholesale sales

 

70,954

 

72,548

 

(2.2)

Total used

 

603,867

 

615,344

 

(1.9)

Parts and service

 

266,033

 

260,974

 

1.9

Finance, insurance and other, net

 

93,112

 

92,645

 

0.5

Total

 

$ 2,170,934

 

$ 2,264,476

 

(4.1)

             

GROSS MARGIN %:

           

New vehicle retail sales

 

5.4

 

5.0

   

Used vehicle retail sales

 

6.2

 

6.6

   

Used vehicle wholesale sales

 

(3.9)

 

(1.6)

   

Total used

 

5.0

 

5.6

   

Parts and service

 

53.8

 

54.3

   

Finance, insurance and other, net

 

100.0

 

100.0

   

Total

 

15.3

 

14.7

   
             

GROSS PROFIT:

           

New vehicle retail sales

 

$      65,101

 

$      64,947

 

0.2

Used vehicle retail sales

 

32,877

 

35,746

 

(8.0)

Used vehicle wholesale sales

 

(2,796)

 

(1,167)

 

(139.6)

Total used

 

30,081

 

34,579

 

(13.0)

Parts and service

 

143,023

 

141,789

 

0.9

Finance, insurance and other, net

 

93,112

 

92,645

 

0.5

Total 

 

$    331,317

 

$    333,960

 

(0.8)

             

UNITS SOLD:

           

Retail new vehicles sold

 

31,779

 

35,605

 

(10.7)

Retail used vehicles sold

 

24,866

 

25,564

 

(2.7)

Wholesale used vehicles sold

 

10,115

 

10,768

 

(6.1)

Total used

 

34,981

 

36,332

 

(3.7)

             

AVERAGE RETAIL SALES PRICE:

           

New vehicle retail

 

$      38,010

 

$      36,386

 

4.5

Used vehicle retail

 

$      21,431

 

$      21,233

 

0.9

             

GROSS PROFIT PER UNIT SOLD:

           

New vehicle retail sales

 

$        2,049

 

$        1,824

 

12.3

Used vehicle retail sales

 

1,322

 

1,398

 

(5.4)

Used vehicle wholesale sales

 

(276)

 

(108)

 

(155.6)

Total used

 

860

 

952

 

(9.7)

Finance, insurance and other, net (per retail unit)

 

$        1,644

 

$        1,515

 

8.5

             

OTHER: 

           

SG&A expenses

 

$    227,411

 

$    240,001

 

(5.2)

Adjusted SG&A expenses(1)

 

$    238,227

 

$    247,203

 

(3.6)

SG&A as % revenues

 

10.5

 

10.6

   

Adjusted SG&A as % revenues (1)

 

11.0

 

10.9

   

SG&A as % gross profit

 

68.6

 

71.9

   

Adjusted SG&A as % gross profit (1)

 

71.9

 

74.0

   

Operating margin %

 

3.8

 

2.9

   

Adjusted operating margin % (1)

 

3.8

 

3.4

   

Pretax margin %

 

2.7

 

1.9

   

Adjusted pretax margin % (1)

 

2.6

 

2.3

   
             

INTEREST EXPENSE:

           

Floorplan interest expense

 

$    (10,015)

 

$      (9,622)

 

4.1

Floorplan assistance

 

12,201

 

13,128

 

(7.1)

Net floorplan income

 

$        2,186

 

$        3,506

 

(37.6)

Other interest expense, net

 

$    (15,740)

 

$    (13,744)

 

14.5

             
             
   

Twelve Months Ended December 31,

   

2016

 

2015

 

% Increase/

(Decrease)

REVENUES:

           

New vehicle retail sales

 

$ 4,766,047

 

$ 4,989,290

 

(4.5)

Used vehicle retail sales

 

2,242,508

 

2,204,728

 

1.7

Used vehicle wholesale sales

 

276,710

 

289,580

 

(4.4)

Total used

 

2,519,218

 

2,494,308

 

1.0

Parts and service

 

1,071,651

 

1,032,960

 

3.7

Finance, insurance and other, net

 

377,756

 

377,432

 

0.1

Total 

 

$ 8,734,672

 

$ 8,893,990

 

(1.8)

             

GROSS MARGIN %:

           

New vehicle retail sales

 

5.1

 

4.8

   

Used vehicle retail sales

 

6.9

 

7.2

   

Used vehicle wholesale sales

 

(1.2)

 

(0.5)

   

Total used

 

6.0

 

6.3

   

Parts and service

 

54.4

 

54.7

   

Finance, insurance and other, net

 

100.0

 

100.0

   

Total

 

15.5

 

15.1

   
             

GROSS PROFIT:

           

New vehicle retail sales

 

$    242,773

 

$    240,496

 

0.9

Used vehicle retail sales

 

155,709

 

157,652

 

(1.2)

Used vehicle wholesale sales

 

(3,439)

 

(1,334)

 

(157.8)

Total used

 

152,270

 

156,318

 

(2.6)

Parts and service

 

582,550

 

564,701

 

3.2

Finance, insurance and other, net

 

377,756

 

377,432

 

0.1

Total 

 

$ 1,355,349

 

$ 1,338,947

 

1.2

             

UNITS SOLD:

           

Retail new vehicles sold

 

130,471

 

142,256

 

(8.3)

Retail used vehicles sold

 

105,754

 

105,211

 

0.5

Wholesale used vehicles sold

 

41,009

 

44,310

 

(7.4)

Total used

 

146,763

 

149,521

 

(1.8)

             

AVERAGE RETAIL SALES PRICE:

           

New vehicle retail

 

$      36,530

 

$      35,073

 

4.2

Used vehicle retail

 

$      21,205

 

$      20,955

 

1.2

             

GROSS PROFIT PER UNIT SOLD:

           

New vehicle retail sales

 

$        1,861

 

$        1,691

 

10.1

Used vehicle retail sales

 

1,472

 

1,498

 

(1.7)

Used vehicle wholesale sales

 

(84)

 

(30)

 

(180.0)

Total used

 

1,038

 

1,045

 

(0.7)

Finance, insurance and other, net (per retail unit)

 

$        1,599

 

$        1,525

 

4.9

             

OTHER: 

           

SG&A expenses

 

$    965,139

 

$    958,608

 

0.7

Adjusted SG&A expenses(1)

 

$    971,908

 

$    964,911

 

0.7

SG&A as % revenues

 

11.0

 

10.8

   

Adjusted SG&A as % revenues (1)

 

11.1

 

10.8

   

SG&A as % gross profit

 

71.2

 

71.6

   

Adjusted SG&A as % gross profit (1)

 

71.7

 

72.1

   

Operating margin %

 

3.7

 

3.6

   

Adjusted operating margin % (1)

 

3.9

 

3.7

   

Pretax margin %

 

2.5

 

2.6

   

Adjusted pretax margin % (1)

 

2.7

 

2.7

   
             

INTEREST EXPENSE:

           

Floorplan interest expense

 

$    (40,444)

 

$    (36,062)

 

12.2

Floorplan assistance

 

48,377

 

49,631

 

(2.5)

Net floorplan income

 

$        7,933

 

$      13,569

 

(41.5)

Other interest expense, net

 

$    (62,320)

 

$    (52,277)

 

19.2

             

(1)See the section of this release entitled "Non-GAAP Financial Measures " and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.

 

Group 1 Automotive, Inc.

Additional Information - U.K.

(Unaudited)

(Dollars in thousands, except per unit amounts)

                 
   

Three Months Ended December 31,

   

2016

 

2015

 

% Increase/

(Decrease)

 

Constant Currency (1) 

% Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$          222,831

 

$          149,465

 

49.1

 

82.1

Used vehicle retail sales

 

94,403

 

81,682

 

15.6

 

41.3

Used vehicle wholesale sales

 

27,762

 

22,013

 

26.1

 

54.3

Total used

 

122,165

 

103,695

 

17.8

 

44.1

Parts and service

 

33,182

 

25,200

 

31.7

 

60.9

Finance, insurance and other, net

 

9,314

 

6,706

 

38.9

 

68.9

Total

 

$          387,492

 

$          285,066

 

35.9

 

66.1

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

6.0

 

6.4

       

Used vehicle retail sales

 

4.8

 

5.1

       

Used vehicle wholesale sales

 

(4.4)

 

(3.2)

       

Total used

 

2.7

 

3.3

       

Parts and service

 

55.8

 

54.1

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

11.5

 

11.7

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$            13,308

 

$              9,506

 

40.0

 

69.8

Used vehicle retail sales

 

4,497

 

4,172

 

7.8

 

31.7

Used vehicle wholesale sales

 

(1,235)

 

(699)

 

(76.7)

 

(114.4)

Total used

 

3,262

 

3,473

 

(6.1)

 

15.1

Parts and service

 

18,532

 

13,624

 

36.0

 

66.2

Finance, insurance and other, net

 

9,314

 

6,706

 

38.9

 

68.9

Total 

 

$            44,416

 

$            33,309

 

33.3

 

62.4

                 

UNITS SOLD:

               

Retail new vehicles sold

 

7,880

 

4,293

 

83.6

   

Retail used vehicles sold

 

4,429

 

3,211

 

37.9

   

Wholesale used vehicles sold

 

3,780

 

2,678

 

41.2

   

Total used

 

8,209

 

5,889

 

39.4

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$            28,278

 

$            34,816

 

(18.8)

 

(0.8)

Used vehicle retail

 

$            21,315

 

$            25,438

 

(16.2)

 

2.4

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$              1,689

 

$              2,214

 

(23.7)

 

(7.5)

Used vehicle retail sales

 

1,015

 

1,299

 

(21.9)

 

(4.5)

Used vehicle wholesale sales

 

(327)

 

(261)

 

(25.3)

 

(51.9)

Total used

 

397

 

590

 

(32.7)

 

(17.4)

Finance, insurance and other, net (per retail unit)

 

$                 757

 

$                 894

 

(15.3)

 

3.0

                 

OTHER: 

               

SG&A expenses

 

$            39,482

 

$            27,191

 

45.2

 

77.2

Adjusted SG&A expenses(1)

 

$            39,137

 

$            27,191

 

43.9

 

75.7

SG&A as % revenues

 

10.2

 

9.5

       

Adjusted SG&A as % revenues (1)

 

10.1

 

9.5

       

SG&A as % gross profit

 

88.9

 

81.6

       

Adjusted SG&A as % gross profit (1)

 

88.1

 

81.6

       

Operating margin %

 

0.8

 

1.7

       

Adjusted operating margin % (1)

 

0.9

 

1.7

       

Pretax margin %

 

0.2

 

1.3

       

Adjusted pretax margin % (1)

 

0.3

 

1.3

       
                 

INTEREST EXPENSE:

               

Floorplan interest expense

 

$            (1,085)

 

$               (587)

 

84.8

 

125.9

Floorplan assistance

 

182

 

259

 

(29.7)

 

(14.0)

Net floorplan expense

 

$               (903)

 

$               (328)

 

175.3

 

236.2

Other interest expense, net

 

$            (1,231)

 

$               (796)

 

54.6

 

88.6

                 
                 
   

Twelve Months Ended December 31,

   

2016

 

2015

 

% Increase/

(Decrease)

 

Constant Currency (1) 

% Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$          987,538

 

$          641,888

 

53.8

 

73.5

Used vehicle retail sales

 

434,203

 

351,311

 

23.6

 

39.2

Used vehicle wholesale sales

 

121,747

 

100,706

 

20.9

 

36.2

Total used

 

555,950

 

452,017

 

23.0

 

38.6

Parts and service

 

143,362

 

102,183

 

40.3

 

58.4

Finance, insurance and other, net

 

36,305

 

24,117

 

50.5

 

70.1

Total 

 

$       1,723,155

 

$       1,220,205

 

41.2

 

59.2

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.7

 

6.3

       

Used vehicle retail sales

 

5.0

 

5.2

       

Used vehicle wholesale sales

 

(1.0)

 

(1.1)

       

Total used

 

3.7

 

3.8

       

Parts and service

 

55.4

 

54.8

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

11.2

 

11.3

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$            56,655

 

$            40,308

 

40.6

 

58.3

Used vehicle retail sales

 

21,826

 

18,335

 

19.0

 

33.7

Used vehicle wholesale sales

 

(1,181)

 

(1,083)

 

(9.0)

 

(38.8)

Total used

 

20,645

 

17,252

 

19.7

 

33.4

Parts and service

 

79,377

 

55,969

 

41.8

 

60.2

Finance, insurance and other, net

 

36,305

 

24,117

 

50.5

 

70.1

Total 

 

$          192,982

 

$          137,646

 

40.2

 

58.0

                 

UNITS SOLD:

               

Retail new vehicles sold

 

31,574

 

18,701

 

68.8

   

Retail used vehicles sold

 

18,830

 

14,074

 

33.8

   

Wholesale used vehicles sold

 

15,108

 

11,360

 

33.0

   

Total used

 

33,938

 

25,434

 

33.4

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$            31,277

 

$            34,324

 

(8.9)

 

2.7

Used vehicle retail

 

$            23,059

 

$            24,962

 

(7.6)

 

4.1

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$              1,794

 

$              2,155

 

(16.8)

 

(6.2)

Used vehicle retail sales

 

1,159

 

1,303

 

(11.1)

 

(0.0)

Used vehicle wholesale sales

 

(78)

 

(95)

 

17.9

 

(4.4)

Total used

 

608

 

678

 

(10.3)

 

(0.0)

Finance, insurance and other, net (per retail unit)

 

$                 720

 

$                 736

 

(2.2)

 

10.6

                 

OTHER: 

               

SG&A expenses

 

$          158,636

 

$          108,719

 

45.9

 

65.1

Adjusted SG&A expenses(1)

 

$          157,730

 

$          108,511

 

45.4

 

64.5

SG&A as % revenues

 

9.2

 

8.9

       

Adjusted SG&A as % revenues (1)

 

9.2

 

8.9

       

SG&A as % gross profit

 

82.2

 

79.0

       

Adjusted SG&A as % gross profit (1)

 

81.7

 

78.8

       

Operating margin %

 

1.6

 

2.0

       

Adjusted operating margin % (1)

 

1.7

 

2.0

       

Pretax margin %

 

1.1

 

1.5

       

Adjusted pretax margin % (1)

 

1.1

 

1.6

       
                 

INTEREST EXPENSE:

               

Floorplan interest expense

 

$            (4,222)

 

$            (2,276)

 

85.5

 

110.4

Floorplan assistance

 

825

 

843

 

(2.1)

 

9.4

Net floorplan expense

 

$            (3,397)

 

$            (1,433)

 

137.1

 

169.8

Other interest expense, net

 

$            (5,197)

 

$            (3,135)

 

65.8

 

87.3

                 

(1) See the section of this release entitled "Non-GAAP Financial Measures " and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.

 

Group 1 Automotive, Inc.

Additional Information - Brazil

(Unaudited)

(Dollars in thousands, except per unit amounts)

                 
   

Three Months Ended December 31,

   

2016

 

2015

 

% Increase/

(Decrease)

 

Constant Currency (1) 

% Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$   76,760

 

$   88,130

 

(12.9)

 

(25.1)

Used vehicle retail sales

 

23,828

 

21,366

 

11.5

 

(4.2)

Used vehicle wholesale sales

 

1,058

 

503

 

110.3

 

81.1

Total used

 

24,886

 

21,869

 

13.8

 

(2.2)

Parts and service

 

11,751

 

11,080

 

6.1

 

(9.1)

Finance, insurance and other, net

 

1,809

 

1,981

 

(8.7)

 

(21.7)

Total

 

$ 115,206

 

$ 123,060

 

(6.4)

 

(19.5)

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

6.1

 

6.4

       

Used vehicle retail sales

 

7.0

 

3.7

       

Used vehicle wholesale sales

 

4.8

 

6.8

       

Total used

 

6.9

 

3.8

       

Parts and service

 

44.7

 

39.6

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

11.7

 

10.5

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$     4,659

 

$     5,673

 

(17.9)

 

(29.4)

Used vehicle retail sales

 

1,672

 

789

 

111.9

 

82.0

Used vehicle wholesale sales

 

51

 

34

 

50.0

 

27.2

Total used

 

1,723

 

823

 

109.4

 

79.7

Parts and service

 

5,257

 

4,387

 

19.8

 

3.0

Finance, insurance and other, net

 

1,809

 

1,981

 

(8.7)

 

(21.7)

Total 

 

$   13,448

 

$   12,864

 

4.5

 

(10.2)

                 

UNITS SOLD:

               

Retail new vehicles sold

 

2,372

 

3,586

 

(33.9)

   

Retail used vehicles sold

 

1,082

 

1,465

 

(26.1)

   

Wholesale used vehicles sold

 

367

 

287

 

27.9

   

Total used

 

1,449

 

1,752

 

(17.3)

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$   32,361

 

$   24,576

 

31.7

 

13.2

Used vehicle retail

 

$   22,022

 

$   14,584

 

51.0

 

29.7

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$     1,964

 

$     1,582

 

24.1

 

6.7

Used vehicle retail sales

 

1,545

 

539

 

186.6

 

146.4

Used vehicle wholesale sales

 

139

 

118

 

17.8

 

(0.5)

Total used

 

1,189

 

470

 

153.0

 

117.3

Finance, insurance and other, net (per retail unit)

 

$        524

 

$        392

 

33.7

 

14.5

                 

OTHER: 

               

SG&A expenses

 

$   12,178

 

$   12,593

 

(3.3)

 

(17.1)

Adjusted SG&A expenses(1)

 

$   12,178

 

$   11,847

 

2.8

 

(11.8)

SG&A as % revenues

 

10.6

 

10.2

       

Adjusted SG&A as % revenues (1)

 

10.6

 

9.6

       

SG&A as % gross profit

 

90.6

 

97.9

       

Adjusted SG&A as % gross profit (1)

 

90.6

 

92.1

       

Operating margin %

 

(8.2)

 

(54.8)

       

Adjusted operating margin % (1)

 

0.8

 

0.6

       

Pretax margin %

 

(8.5)

 

(55.0)

       

Adjusted pretax margin % (1)

 

0.5

 

0.3

       
                 

INTEREST EXPENSE:

               

Floorplan interest expense

 

$        (89)

 

$          (7)

 

1,171.4

 

877.4

Floorplan assistance

 

 

 

-

 

-

Net floorplan expense

 

$        (89)

 

$          (7)

 

1,171.4

 

877.4

Other interest expense, net

 

$      (237)

 

$      (303)

 

(21.8)

 

(33.1)

                 
                 
   

Twelve Months Ended December 31,

   

2016

 

2015

 

% Increase/

(Decrease)

 

Constant Currency (1)

% Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$ 292,490

 

$ 370,128

 

(21.0)

 

(17.2)

Used vehicle retail sales

 

81,002

 

82,930

 

(2.3)

 

2.4

Used vehicle wholesale sales

 

3,406

 

6,965

 

(51.1)

 

(45.5)

Total used

 

84,408

 

89,895

 

(6.1)

 

(1.3)

Parts and service

 

46,294

 

51,050

 

(9.3)

 

(4.2)

Finance, insurance and other, net

 

6,593

 

7,237

 

(8.9)

 

(5.5)

Total 

 

$ 429,785

 

$ 518,310

 

(17.1)

 

(12.9)

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.8

 

6.7

       

Used vehicle retail sales

 

6.1

 

4.2

       

Used vehicle wholesale sales

 

5.2

 

7.1

       

Total used

 

6.1

 

4.4

       

Parts and service

 

39.0

 

42.1

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

10.9

 

11.1

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$   16,950

 

$   24,673

 

(31.3)

 

(27.7)

Used vehicle retail sales

 

4,944

 

3,483

 

41.9

 

47.0

Used vehicle wholesale sales

 

178

 

497

 

(64.2)

 

(60.0)

Total used

 

5,122

 

3,980

 

28.7

 

33.7

Parts and service

 

18,073

 

21,489

 

(15.9)

 

(10.8)

Finance, insurance and other, net

 

6,593

 

7,237

 

(8.9)

 

(5.5)

Total 

 

$   46,738

 

$   57,379

 

(18.5)

 

(14.3)

                 

UNITS SOLD:

               

Retail new vehicles sold

 

10,008

 

13,657

 

(26.7)

   

Retail used vehicles sold

 

4,547

 

4,868

 

(6.6)

   

Wholesale used vehicles sold

 

1,222

 

1,556

 

(21.5)

   

Total used

 

5,769

 

6,424

 

(10.2)

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$   29,226

 

$   27,102

 

7.8

 

13.0

Used vehicle retail

 

$   17,814

 

$   17,036

 

4.6

 

9.6

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$     1,694

 

$     1,807

 

(6.3)

 

(1.3)

Used vehicle retail sales

 

1,087

 

715

 

52.0

 

57.4

Used vehicle wholesale sales

 

146

 

319

 

(54.2)

 

(49.0)

Total used

 

888

 

620

 

43.2

 

48.8

Finance, insurance and other, net (per retail unit)

 

$        453

 

$        391

 

15.9

 

20.3

                 

OTHER: 

               

SG&A expenses

 

$   46,988

 

$   53,506

 

(12.2)

 

(7.5)

Adjusted SG&A expenses(1)

 

$   46,342

 

$   52,760

 

(12.2)

 

(7.3)

SG&A as % revenues

 

10.9

 

10.3

       

Adjusted SG&A as % revenues (1)

 

10.8

 

10.2

       

SG&A as % gross profit

 

100.5

 

93.3

       

Adjusted SG&A as % gross profit (1)

 

99.2

 

92.0

       

Operating margin %

 

(2.9)

 

(12.8)

       

Adjusted operating margin % (1)

 

(0.2)

 

0.6

       

Pretax margin %

 

(3.0)

 

(13.2)

       

Adjusted pretax margin % (1)

 

(0.3)

 

0.1

       
                 

INTEREST EXPENSE:

               

Floorplan interest expense

 

$      (261)

 

$      (926)

 

(71.8)

 

(67.5)

Floorplan assistance

 

 

 

-

 

-

Net floorplan expense

 

$      (261)

 

$      (926)

 

(71.8)

 

(67.5)

Other interest expense, net

 

$      (418)

 

$   (1,491)

 

(72.0)

 

(70.0)

                 

(1)See the section of this release entitled "Non-GAAP Financial Measures " and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

(Dollars in thousands, except per unit amounts)

                 
   

Three Months Ended December 31,

   

2016

 

2015

 

% Increase/

(Decrease)

 

Constant Currency % (1)

Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$     1,507,513

 

$     1,533,108

 

(1.7)

 

0.8

Used vehicle retail sales

 

651,144

 

645,844

 

0.8

 

3.6

Used vehicle wholesale sales

 

99,774

 

95,064

 

5.0

 

11.3

Total used

 

750,918

 

740,908

 

1.4

 

4.6

Parts and service

 

310,966

 

297,254

 

4.6

 

6.5

Finance, insurance and other, net

 

104,235

 

101,332

 

2.9

 

4.6

Total

 

$     2,673,632

 

$     2,672,602

 

0.0

 

2.6

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.5

 

5.2

       

Used vehicle retail sales

 

6.0

 

6.3

       

Used vehicle wholesale sales

 

(4.0)

 

(1.9)

       

Total used

 

4.7

 

5.2

       

Parts and service

 

53.6

 

53.8

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

14.6

 

14.2

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$          83,068

 

$          80,126

 

3.7

 

6.4

Used vehicle retail sales

 

39,046

 

40,707

 

(4.1)

 

(2.2)

Used vehicle wholesale sales

 

(3,980)

 

(1,832)

 

(117.2)

 

(132.1)

Total used

 

35,066

 

38,875

 

(9.8)

 

(8.5)

Parts and service

 

166,812

 

159,800

 

4.4

 

6.5

Finance, insurance and other, net

 

104,235

 

101,332

 

2.9

 

4.6

Total 

 

$        389,181

 

$        380,133

 

2.4

 

4.4

                 

UNITS SOLD:

               

Retail new vehicles sold

 

42,031

 

43,484

 

(3.3)

   

Retail used vehicles sold

 

30,377

 

30,240

 

0.5

   

Wholesale used vehicles sold

 

14,262

 

13,733

 

3.9

   

Total used

 

44,639

 

43,973

 

1.5

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$          35,867

 

$          35,257

 

1.7

 

4.3

Used vehicle retail

 

$          21,435

 

$          21,357

 

0.4

 

3.1

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$            1,976

 

$            1,843

 

7.2

 

10.1

Used vehicle retail sales

 

1,285

 

1,346

 

(4.5)

 

(2.6)

Used vehicle wholesale sales

 

(279)

 

(133)

 

(109.8)

 

(123.5)

Total used

 

786

 

884

 

(11.1)

 

(9.9)

Finance, insurance and other, net (per retail unit)

 

$            1,440

 

$            1,374

 

4.8

 

6.5

                 

OTHER: 

               

SG&A expenses

 

$        279,071

 

$        279,785

 

(0.3)

 

2.2

Adjusted SG&A expenses(1)

 

$        289,542

 

$        286,240

 

1.2

 

3.6

SG&A as % revenues

 

10.4

 

10.5

       

Adjusted SG&A as % revenues (1)

 

10.8

 

10.7

       

SG&A as % gross profit

 

71.7

 

73.6

       

Adjusted SG&A as % gross profit (1)

 

74.4

 

75.3

       

Operating margin %

 

2.9

 

0.1

       

Adjusted operating margin % (1)

 

3.2

 

3.1

       

Pretax margin %

 

1.8

 

(0.8)

       

Adjusted pretax margin % (1)

 

2.2

 

2.1

       
                 

INTEREST EXPENSE:

               

Floorplan interest expense

 

$        (11,189)

 

$        (10,216)

 

9.5

 

11.7

Floorplan assistance

 

12,383

 

13,387

 

(7.5)

 

(7.5)

Net floorplan income

 

$            1,194

 

$            3,171

 

(62.3)

 

(69.5)

Other interest expense, net

 

$        (17,208)

 

$        (14,843)

 

15.9

 

17.5

                 
                 
   

Twelve Months Ended December 31,

   

2016

 

2015

 

% Increase/

(Decrease)

 

Constant Currency % (1)

Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$     6,046,075

 

$     6,001,306

 

0.7

 

3.1

Used vehicle retail sales

 

2,757,713

 

2,638,969

 

4.5

 

6.7

Used vehicle wholesale sales

 

401,863

 

397,251

 

1.2

 

5.2

Total used

 

3,159,576

 

3,036,220

 

4.1

 

6.5

Parts and service

 

1,261,307

 

1,186,193

 

6.3

 

8.1

Finance, insurance and other, net

 

420,654

 

408,786

 

2.9

 

4.1

Total 

 

$   10,887,612

 

$   10,632,505

 

2.4

 

4.7

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.2

 

5.1

       

Used vehicle retail sales

 

6.6

 

6.8

       

Used vehicle wholesale sales

 

(1.1)

 

(0.5)

       

Total used

 

5.6

 

5.8

       

Parts and service

 

53.9

 

54.1

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

14.7

 

14.4

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$        316,378

 

$        305,477

 

3.6

 

6.2

Used vehicle retail sales

 

182,479

 

179,470

 

1.7

 

3.3

Used vehicle wholesale sales

 

(4,442)

 

(1,920)

 

(131.4)

 

(146.9)

Total used

 

178,037

 

177,550

 

0.3

 

1.7

Parts and service

 

680,000

 

642,159

 

5.9

 

7.7

Finance, insurance and other, net

 

420,654

 

408,786

 

2.9

 

4.1

Total 

 

$     1,595,069

 

$     1,533,972

 

4.0

 

5.7

                 

UNITS SOLD:

               

Retail new vehicles sold

 

172,053

 

174,614

 

(1.5)

   

Retail used vehicles sold

 

129,131

 

124,153

 

4.0

   

Wholesale used vehicles sold

 

57,339

 

57,226

 

0.2

   

Total used

 

186,470

 

181,379

 

2.8

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$          35,141

 

$          34,369

 

2.2

 

4.6

Used vehicle retail

 

$          21,356

 

$          21,256

 

0.5

 

2.6

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$            1,839

 

$            1,749

 

5.1

 

7.8

Used vehicle retail sales

 

1,413

 

1,446

 

(2.3)

 

(0.7)

Used vehicle wholesale sales

 

(77)

 

(34)

 

(126.5)

 

(146.5)

Total used

 

955

 

979

 

(2.5)

 

(1.1)

Finance, insurance and other, net (per retail unit)

 

$            1,397

 

$            1,368

 

2.1

 

3.3

                 

OTHER: 

               

SG&A expenses

 

$     1,170,763

 

$     1,120,833

 

4.5

 

6.5

Adjusted SG&A expenses(1)

 

$     1,175,980

 

$     1,126,182

 

4.4

 

6.5

SG&A as % revenues

 

10.8

 

10.5

       

Adjusted SG&A as % revenues (1)

 

10.8

 

10.6

       

SG&A as % gross profit

 

73.4

 

73.1

       

Adjusted SG&A as % gross profit (1)

 

73.7

 

73.4

       

Operating margin %

 

3.1

 

2.6

       

Adjusted operating margin % (1)

 

3.4

 

3.4

       

Pretax margin %

 

2.1

 

1.7

       

Adjusted pretax margin % (1)

 

2.3

 

2.5

       
                 

INTEREST EXPENSE:

               

Floorplan interest expense

 

$        (44,927)

 

$        (39,264)

 

14.4

 

16.0

Floorplan assistance

 

49,202

 

50,474

 

(2.5)

 

(2.5)

Net floorplan income 

 

$            4,275

 

$          11,210

 

(61.9)

 

(67.3)

Other interest expense, net

 

$        (67,936)

 

$        (56,903)

 

19.4

 

20.6

                 

(1)See the section of this release entitled "Non-GAAP Financial Measures " and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)

             
   

Three Months Ended December 31,

   

2016

 

2015

 

% Increase/

(Decrease)

REVENUES:

           

New vehicle retail sales

 

$  1,207,486

 

$  1,253,970

 

(3.7)

Used vehicle retail sales

 

532,880

 

527,051

 

1.1

Used vehicle wholesale sales

 

70,622

 

69,223

 

2.0

Total used

 

603,502

 

596,274

 

1.2

Parts and service

 

266,012

 

253,165

 

5.1

Finance, insurance and other, net

 

92,661

 

90,563

 

2.3

Total 

 

$  2,169,661

 

$  2,193,972

 

(1.1)

             

GROSS MARGIN %:

           

New vehicle retail sales

 

5.4

 

5.1

   

Used vehicle retail sales

 

6.2

 

6.6

   

Used vehicle wholesale sales

 

(3.9)

 

(1.4)

   

Total used

 

5.0

 

5.7

   

Parts and service

 

53.7

 

54.2

   

Finance, insurance and other, net

 

100.0

 

100.0

   

Total

 

15.2

 

14.8

   
             

GROSS PROFIT:

           

New vehicle retail sales

 

$       64,912

 

$       63,728

 

1.9

Used vehicle retail sales

 

32,880

 

34,963

 

(6.0)

Used vehicle wholesale sales

 

(2,748)

 

(985)

 

(179.0)

Total used

 

30,132

 

33,978

 

(11.3)

Parts and service

 

142,892

 

137,316

 

4.1

Finance, insurance and other, net

 

92,661

 

90,563

 

2.3

Total 

 

$     330,597

 

$     325,585

 

1.5

             

UNITS SOLD:

           

Retail new vehicles sold

 

31,765

 

34,175

 

(7.1)

Retail used vehicles sold

 

24,864

 

24,859

 

0.0

Wholesale used vehicles sold

 

10,090

 

10,277

 

(1.8)

Total used

 

34,954

 

35,136

 

(0.5)

             

AVERAGE RETAIL SALES PRICE:

           

New vehicle retail

 

$       38,013

 

$       36,693

 

3.6

Used vehicle retail

 

$       21,432

 

$       21,202

 

1.1

             

GROSS PROFIT PER UNIT SOLD:

           

New vehicle retail sales

 

$         2,044

 

$         1,865

 

9.6

Used vehicle retail sales

 

1,322

 

1,406

 

(6.0)

Used vehicle wholesale sales

 

(272)

 

(96)

 

(183.3)

Total used

 

862

 

967

 

(10.9)

Finance, insurance and other, net (per retail unit)

 

$         1,636

 

$         1,534

 

6.6

             

OTHER: 

           

SG&A expenses

 

$     229,943

 

$     238,889

 

(3.7)

Adjusted SG&A expenses(2)

 

$     237,970

 

$     238,047

 

(0.0)

SG&A as % revenues

 

10.6

 

10.9

   

Adjusted SG&A as % revenues (2)

 

11.0

 

10.9

   

SG&A as % gross profit

 

69.6

 

73.4

   

Adjusted SG&A as % gross profit (2)

 

72.0

 

73.1

   

Operating margin %

 

3.7

 

2.8

   

Adjusted operating margin % (2)

 

3.8

 

3.5

   
             
   

Twelve Months Ended December 31,

   

2016

 

2015

 

% Increase/

(Decrease)

REVENUES:

           

New vehicle retail sales

 

$  4,691,033

 

$  4,869,109

 

(3.7)

Used vehicle retail sales

 

2,203,802

 

2,155,468

 

2.2

Used vehicle wholesale sales

 

270,687

 

278,909

 

(2.9)

Total used

 

2,474,489

 

2,434,377

 

1.6

Parts and service

 

1,054,945

 

1,006,640

 

4.8

Finance, insurance and other, net

 

371,544

 

371,603

 

(0.0)

Total 

 

$  8,592,011

 

$  8,681,729

 

(1.0)

             

GROSS MARGIN %:

           

New vehicle retail sales

 

5.1

 

4.8

   

Used vehicle retail sales

 

6.9

 

7.2

   

Used vehicle wholesale sales

 

(1.2)

 

(0.3)

   

Total used

 

6.1

 

6.3

   

Parts and service

 

54.3

 

54.6

   

Finance, insurance and other, net

 

100.0

 

100.0

   

Total

 

15.5

 

15.1

   
             

GROSS PROFIT:

           

New vehicle retail sales

 

$     237,915

 

$     235,706

 

0.9

Used vehicle retail sales

 

152,960

 

154,958

 

(1.3)

Used vehicle wholesale sales

 

(3,120)

 

(834)

 

(274.1)

Total used

 

149,840

 

154,124

 

(2.8)

Parts and service

 

572,729

 

549,952

 

4.1

Finance, insurance and other, net

 

371,544

 

371,603

 

(0.0)

Total 

 

$  1,332,028

 

$  1,311,385

 

1.6

             

UNITS SOLD:

           

Retail new vehicles sold

 

128,928

 

138,599

 

(7.0)

Retail used vehicles sold

 

104,451

 

103,151

 

1.3

Wholesale used vehicles sold

 

40,457

 

42,928

 

(5.8)

Total used

 

144,908

 

146,079

 

(0.8)

             

AVERAGE RETAIL SALES PRICE:

           

New vehicle retail

 

$       36,385

 

$       35,131

 

3.6

Used vehicle retail

 

$       21,099

 

$       20,896

 

1.0

             

GROSS PROFIT PER UNIT SOLD:

           

New vehicle retail sales

 

$         1,845

 

$         1,701

 

8.5

Used vehicle retail sales

 

1,464

 

1,502

 

(2.5)

Used vehicle wholesale sales

 

(77)

 

(19)

 

(305.3)

Total used

 

1,034

 

1,055

 

(2.0)

Finance, insurance and other, net (per retail unit)

 

$         1,592

 

$         1,537

 

3.6

             

OTHER: 

           

SG&A expenses

 

$     952,597

 

$     939,535

 

1.4

Adjusted SG&A expenses(2)

 

$     954,336

 

$     936,378

 

1.9

SG&A as % revenues

 

11.1

 

10.8

   

Adjusted SG&A as % revenues (2)

 

11.1

 

10.8

   

SG&A as % gross profit

 

71.5

 

71.6

   

Adjusted SG&A as % gross profit (2)

 

71.6

 

71.4

   

Operating margin %

 

3.7

 

3.6

   

Adjusted operating margin % (2)

 

3.9

 

3.9

   
             

(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)See the section of this release entitled "Non-GAAP Financial Measures " and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)

                 
   

Three Months Ended December 31,

   

2016

 

2015

 

% Increase/

(Decrease)

 

Constant Currency (2)

% Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$     148,449

 

$     149,465

 

(0.7)

 

21.3

Used vehicle retail sales

 

71,210

 

81,682

 

(12.8)

 

6.6

Used vehicle wholesale sales

 

20,106

 

22,014

 

(8.7)

 

11.8

Total used

 

91,316

 

103,696

 

(11.9)

 

7.7

Parts and service

 

22,209

 

25,199

 

(11.9)

 

7.7

Finance, insurance and other, net

 

6,508

 

6,706

 

(3.0)

 

18.0

Total 

 

$     268,482

 

$     285,066

 

(5.8)

 

15.1

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.9

 

6.4

       

Used vehicle retail sales

 

5.2

 

5.1

       

Used vehicle wholesale sales

 

(2.2)

 

(3.2)

       

Total used

 

3.6

 

3.3

       

Parts and service

 

56.3

 

54.1

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

11.6

 

11.7

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$         8,814

 

$         9,506

 

(7.3)

 

12.5

Used vehicle retail sales

 

3,718

 

4,172

 

(10.9)

 

8.9

Used vehicle wholesale sales

 

(447)

 

(699)

 

36.1

 

22.6

Total used

 

3,271

 

3,473

 

(5.8)

 

15.3

Parts and service

 

12,507

 

13,624

 

(8.2)

 

12.1

Finance, insurance and other, net

 

6,508

 

6,706

 

(3.0)

 

18.0

Total 

 

$       31,100

 

$       33,309

 

(6.6)

 

13.7

                 

UNITS SOLD:

               

Retail new vehicles sold

 

5,105

 

4,293

 

18.9

   

Retail used vehicles sold

 

3,448

 

3,211

 

7.4

   

Wholesale used vehicles sold

 

2,761

 

2,678

 

3.1

   

Total used

 

6,209

 

5,889

 

5.4

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$       29,079

 

$       34,816

 

(16.5)

 

2.0

Used vehicle retail

 

$       20,653

 

$       25,438

 

(18.8)

 

(0.7)

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$         1,727

 

$         2,214

 

(22.0)

 

(5.4)

Used vehicle retail sales

 

1,078

 

1,299

 

(17.0)

 

1.4

Used vehicle wholesale sales

 

(162)

 

(261)

 

37.9

 

25.0

Total used

 

527

 

590

 

(10.7)

 

9.3

Finance, insurance and other, net (per retail unit)

 

$            761

 

$            894

 

(14.9)

 

3.6

                 

OTHER: 

               

SG&A expenses

 

$       25,682

 

$       27,223

 

(5.7)

 

15.1

Adjusted SG&A expenses(2)

 

$       25,621

 

$       27,223

 

(5.9)

 

14.9

SG&A as % revenues

 

9.6

 

9.5

       

Adjusted SG&A as % revenues (2)

 

9.5

 

9.5

       

SG&A as % gross profit

 

82.6

 

81.7

       

Adjusted SG&A as % gross profit (2)

 

82.4

 

81.7

       

Operating margin %

 

1.6

 

1.7

       

Adjusted operating margin % (2)

 

1.6

 

1.7

       
                 
   

Twelve Months Ended December 31,

   

2016

 

2015

 

% Increase/

(Decrease)

 

Constant Currency (2)

% Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$     652,057

 

$     641,888

 

1.6

 

14.5

Used vehicle retail sales

 

332,439

 

351,311

 

(5.4)

 

6.5

Used vehicle wholesale sales

 

90,468

 

100,706

 

(10.2)

 

1.1

Total used

 

422,907

 

452,017

 

(6.4)

 

5.3

Parts and service

 

98,273

 

102,183

 

(3.8)

 

8.5

Finance, insurance and other, net

 

25,694

 

24,117

 

6.5

 

20.3

Total 

 

$  1,198,931

 

$  1,220,205

 

(1.7)

 

10.7

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

6.0

 

6.3

       

Used vehicle retail sales

 

5.3

 

5.2

       

Used vehicle wholesale sales

 

(0.1)

 

(1.1)

       

Total used

 

4.1

 

3.8

       

Parts and service

 

55.5

 

54.8

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

11.4

 

11.3

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$       39,241

 

$       40,300

 

(2.6)

 

9.5

Used vehicle retail sales

 

17,514

 

18,335

 

(4.5)

 

7.4

Used vehicle wholesale sales

 

(100)

 

(1,083)

 

90.8

 

83.2

Total used

 

17,414

 

17,252

 

0.9

 

13.1

Parts and service

 

54,509

 

55,970

 

(2.6)

 

9.9

Finance, insurance and other, net

 

25,694

 

24,117

 

6.5

 

20.3

Total 

 

$     136,858

 

$     137,639

 

(0.6)

 

12.0

                 

UNITS SOLD:

               

Retail new vehicles sold

 

20,401

 

18,701

 

9.1

   

Retail used vehicles sold

 

14,861

 

14,074

 

5.6

   

Wholesale used vehicles sold

 

11,645

 

11,360

 

2.5

   

Total used

 

26,506

 

25,434

 

4.2

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$       31,962

 

$       34,324

 

(6.9)

 

4.9

Used vehicle retail

 

$       22,370

 

$       24,962

 

(10.4)

 

0.8

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$         1,923

 

$         2,155

 

(10.8)

 

0.4

Used vehicle retail sales

 

1,179

 

1,303

 

(9.5)

 

1.7

Used vehicle wholesale sales

 

(9)

 

(95)

 

90.5

 

83.6

Total used

 

657

 

678

 

(3.1)

 

8.5

Finance, insurance and other, net (per retail unit)

 

$            729

 

$            736

 

(1.0)

 

11.8

                 

OTHER: 

               

SG&A expenses

 

$     106,551

 

$     108,770

 

(2.0)

 

10.6

Adjusted SG&A expenses(2)

 

$     105,929

 

$     108,562

 

(2.4)

 

10.2

SG&A as % revenues

 

8.9

 

8.9

       

Adjusted SG&A as % revenues (2)

 

8.8

 

8.9

       

SG&A as % gross profit

 

77.9

 

79.0

       

Adjusted SG&A as % gross profit (2)

 

77.4

 

78.9

       

Operating margin %

 

2.1

 

2.0

       

Adjusted operating margin % (2)

 

2.2

 

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)See the section of this release entitled "Non-GAAP Financial Measures " and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.

 

Group 1 Automotive, Inc.

Additional Information - Same Store Brazil (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)

                 
   

Three Months Ended December 31,

   

2016

 

2015

 

% Increase/

(Decrease)

 

Constant Currency (2)  

% Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$    72,232

 

$    83,451

 

(13.4)

 

(25.6)

Used vehicle retail sales

 

21,742

 

19,498

 

11.5

 

(4.2)

Used vehicle wholesale sales

 

1,058

 

302

 

250.3

 

200.8

Total used

 

22,800

 

19,800

 

15.2

 

(1.1)

Parts and service

 

10,971

 

9,452

 

16.1

 

(0.4)

Finance, insurance and other, net

 

1,786

 

1,779

 

0.4

 

(13.9)

Total 

 

$  107,789

 

$  114,482

 

(5.8)

 

(19.1)

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

6.1

 

6.4

       

Used vehicle retail sales

 

7.2

 

3.5

       

Used vehicle wholesale sales

 

4.9

 

7.3

       

Total used

 

7.1

 

3.5

       

Parts and service

 

45.2

 

40.0

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

11.9

 

10.2

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$      4,432

 

$      5,365

 

(17.4)

 

(29.0)

Used vehicle retail sales

 

1,557

 

678

 

129.6

 

97.3

Used vehicle wholesale sales

 

52

 

22

 

136.4

 

98.5

Total used

 

1,609

 

700

 

129.9

 

97.3

Parts and service

 

4,954

 

3,783

 

31.0

 

12.6

Finance, insurance and other, net

 

1,786

 

1,779

 

0.4

 

(13.9)

Total 

 

$    12,781

 

$    11,627

 

9.9

 

(5.6)

                 

UNITS SOLD:

               

Retail new vehicles sold

 

2,253

 

3,269

 

(31.1)

   

Retail used vehicles sold

 

1,013

 

1,273

 

(20.4)

   

Wholesale used vehicles sold

 

326

 

216

 

50.9

   

Total used

 

1,339

 

1,489

 

(10.1)

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$    32,060

 

$    25,528

 

25.6

 

8.0

Used vehicle retail

 

$    21,463

 

$    15,317

 

40.1

 

20.4

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$      1,967

 

$      1,641

 

19.9

 

3.0

Used vehicle retail sales

 

1,537

 

533

 

188.4

 

147.9

Used vehicle wholesale sales

 

160

 

102

 

56.9

 

31.5

Total used

 

1,202

 

470

 

155.7

 

119.4

Finance, insurance and other, net (per retail unit)

 

$         547

 

$         392

 

39.5

 

19.7

                 

OTHER: 

               

SG&A expenses

 

$    11,409

 

$    10,135

 

12.6

 

(3.4)

Adjusted SG&A expenses(2)

 

$    11,409

 

$      9,985

 

14.3

 

(2.0)

SG&A as % revenues

 

10.6

 

8.9

       

Adjusted SG&A as % revenues (2)

 

10.6

 

8.7

       

SG&A as % gross profit

 

89.3

 

87.2

       

Adjusted SG&A as % gross profit (2)

 

89.3

 

85.9

       

Operating margin %

 

(8.2)

 

(56.4)

       

Adjusted operating margin % (2)

 

1.0

 

1.2

       
                 
   

Twelve Months Ended December 31,

   

2016

 

2015

 

% Increase/

(Decrease)

 

Constant Currency (2)  

% Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$  276,791

 

$  349,858

 

(20.9)

 

(16.9)

Used vehicle retail sales

 

76,063

 

75,658

 

0.5

 

5.8

Used vehicle wholesale sales

 

3,116

 

5,354

 

(41.8)

 

(34.4)

Total used

 

79,179

 

81,012

 

(2.3)

 

3.1

Parts and service

 

43,977

 

44,542

 

(1.3)

 

4.8

Finance, insurance and other, net

 

6,447

 

6,568

 

(1.8)

 

2.3

Total 

 

$  406,394

 

$  481,980

 

(15.7)

 

(11.2)

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.9

 

6.7

       

Used vehicle retail sales

 

6.2

 

4.0

       

Used vehicle wholesale sales

 

6.2

 

7.3

       

Total used

 

6.2

 

4.2

       

Parts and service

 

39.6

 

42.8

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

11.1

 

10.9

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$    16,221

 

$    23,419

 

(30.7)

 

(26.9)

Used vehicle retail sales

 

4,716

 

3,009

 

56.7

 

63.5

Used vehicle wholesale sales

 

192

 

390

 

(50.8)

 

(44.5)

Total used

 

4,908

 

3,399

 

44.4

 

51.1

Parts and service

 

17,398

 

19,050

 

(8.7)

 

(2.7)

Finance, insurance and other, net

 

6,447

 

6,568

 

(1.8)

 

2.3

Total 

 

$    44,974

 

$    52,436

 

(14.2)

 

(9.4)

                 

UNITS SOLD:

               

Retail new vehicles sold

 

9,518

 

12,434

 

(23.5)

   

Retail used vehicles sold

 

4,325

 

4,221

 

2.5

   

Wholesale used vehicles sold

 

1,086

 

1,214

 

(10.5)

   

Total used

 

5,411

 

5,435

 

(0.4)

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$    29,081

 

$    28,137

 

3.4

 

8.6

Used vehicle retail

 

$    17,587

 

$    17,924

 

(1.9)

 

3.3

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$      1,704

 

$      1,883

 

(9.5)

 

(4.5)

Used vehicle retail sales

 

1,090

 

713

 

52.9

 

59.5

Used vehicle wholesale sales

 

177

 

321

 

(44.9)

 

(37.9)

Total used

 

907

 

625

 

45.1

 

51.7

Finance, insurance and other, net (per retail unit)

 

$         466

 

$         394

 

18.3

 

23.1

                 

OTHER: 

               

SG&A expenses

 

$    43,393

 

$    44,677

 

(2.9)

 

2.7

Adjusted SG&A expenses(2)

 

$    43,119

 

$    44,527

 

(3.2)

 

2.5

SG&A as % revenues

 

10.7

 

9.3

       

Adjusted SG&A as % revenues (2)

 

10.6

 

9.2

       

SG&A as % gross profit

 

96.5

 

85.2

       

Adjusted SG&A as % gross profit (2)

 

95.9

 

84.9

       

Operating margin %

 

(2.4)

 

(12.3)

       

Adjusted operating margin % (2)

 

0.2

 

1.4

       
                 

(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)See the section of this release entitled "Non-GAAP Financial Measures " and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.

 

Group 1 Automotive, Inc.

Additional Information - Same Store Consolidated (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)

                 
   

Three Months Ended December 31,

   

2016

 

2015

 

% Increase/

(Decrease)

 

Constant Currency (2)   

% Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$   1,428,167

 

$   1,486,886

 

(3.9)

 

(2.4)

Used vehicle retail sales

 

625,832

 

628,231

 

(0.4)

 

1.7

Used vehicle wholesale sales

 

91,786

 

91,539

 

0.3

 

5.0

Total used

 

717,618

 

719,770

 

(0.3)

 

2.1

Parts and service

 

299,192

 

287,816

 

4.0

 

5.1

Finance, insurance and other, net

 

100,955

 

99,048

 

1.9

 

3.1

Total 

 

$   2,545,932

 

$   2,593,520

 

(1.8)

 

(0.1)

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.5

 

5.3

       

Used vehicle retail sales

 

6.1

 

6.3

       

Used vehicle wholesale sales

 

(3.4)

 

(1.8)

       

Total used

 

4.9

 

5.3

       

Parts and service

 

53.6

 

53.8

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

14.7

 

14.3

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$        78,158

 

$        78,599

 

(0.6)

 

1.0

Used vehicle retail sales

 

38,155

 

39,813

 

(4.2)

 

(2.6)

Used vehicle wholesale sales

 

(3,143)

 

(1,662)

 

(89.1)

 

(95.3)

Total used

 

35,012

 

38,151

 

(8.2)

 

(6.9)

Parts and service

 

160,353

 

154,723

 

3.6

 

5.0

Finance, insurance and other, net

 

100,955

 

99,048

 

1.9

 

3.1

Total 

 

$      374,478

 

$      370,521

 

1.1

 

2.4

                 

UNITS SOLD:

               

Retail new vehicles sold

 

39,123

 

41,737

 

(6.3)

   

Retail used vehicles sold

 

29,325

 

29,343

 

(0.1)

   

Wholesale used vehicles sold

 

13,177

 

13,171

 

0.0

   

Total used

 

42,502

 

42,514

 

(0.0)

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$        36,505

 

$        35,625

 

2.5

 

4.1

Used vehicle retail

 

$        21,341

 

$        21,410

 

(0.3)

 

1.7

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$          1,998

 

$          1,883

 

6.1

 

7.8

Used vehicle retail sales

 

1,301

 

1,357

 

(4.1)

 

(2.6)

Used vehicle wholesale sales

 

(239)

 

(126)

 

(89.7)

 

(95.2)

Total used

 

824

 

897

 

(8.1)

 

(6.9)

Finance, insurance and other, net (per retail unit)

 

$          1,475

 

$          1,393

 

5.9

 

7.1

                 

OTHER: 

               

SG&A expenses

 

$      267,034

 

$      276,247

 

(3.3)

 

(1.9)

Adjusted SG&A expenses(2)

 

$      275,000

 

$      275,255

 

(0.1)

 

1.4

SG&A as % revenues

 

10.5

 

10.7

       

Adjusted SG&A as % revenues (2)

 

10.8

 

10.6

       

SG&A as % gross profit

 

71.3

 

74.6

       

Adjusted SG&A as % gross profit (2)

 

73.4

 

74.3

       

Operating margin %

 

3.0

 

0.1

       

Adjusted operating margin % (2)

 

3.4

 

3.2

       
                 
   

Twelve Months Ended December 31,

   

2016

 

2015

 

% Increase/

(Decrease)

 

Constant Currency (2)   

% Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$   5,619,881

 

$   5,860,855

 

(4.1)

 

(2.5)

Used vehicle retail sales

 

2,612,304

 

2,582,437

 

1.2

 

2.9

Used vehicle wholesale sales

 

364,271

 

384,969

 

(5.4)

 

(2.3)

Total used

 

2,976,575

 

2,967,406

 

0.3

 

2.2

Parts and service

 

1,197,195

 

1,153,365

 

3.8

 

5.1

Finance, insurance and other, net

 

403,685

 

402,288

 

0.3

 

1.2

Total 

 

$ 10,197,336

 

$ 10,383,914

 

(1.8)

 

(0.1)

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.2

 

5.1

       

Used vehicle retail sales

 

6.7

 

6.8

       

Used vehicle wholesale sales

 

(0.8)

 

(0.4)

       

Total used

 

5.8

 

5.9

       

Parts and service

 

53.8

 

54.2

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

14.8

 

14.5

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$      293,377

 

$      299,425

 

(2.0)

 

(0.1)

Used vehicle retail sales

 

175,190

 

176,302

 

(0.6)

 

0.7

Used vehicle wholesale sales

 

(3,028)

 

(1,527)

 

(98.3)

 

(102.1)

Total used

 

172,162

 

174,775

 

(1.5)

 

(0.2)

Parts and service

 

644,636

 

624,972

 

3.1

 

4.4

Finance, insurance and other, net

 

403,685

 

402,288

 

0.3

 

1.2

Total 

 

$   1,513,860

 

$   1,501,460

 

0.8

 

2.1

                 

UNITS SOLD:

               

Retail new vehicles sold

 

158,847

 

169,734

 

(6.4)

   

Retail used vehicles sold

 

123,637

 

121,446

 

1.8

   

Wholesale used vehicles sold

 

53,188

 

55,502

 

(4.2)

   

Total used

 

176,825

 

176,948

 

(0.1)

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$        35,379

 

$        34,530

 

2.5

 

4.2

Used vehicle retail

 

$        21,129

 

$        21,264

 

(0.6)

 

1.1

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$          1,847

 

$          1,764

 

4.7

 

6.8

Used vehicle retail sales

 

1,417

 

1,452

 

(2.4)

 

(1.1)

Used vehicle wholesale sales

 

(57)

 

(28)

 

(103.6)

 

(110.9)

Total used

 

974

 

988

 

(1.4)

 

(0.1)

Finance, insurance and other, net (per retail unit)

 

$          1,429

 

$          1,382

 

3.4

 

4.4

                 

OTHER: 

               

SG&A expenses

 

$   1,102,541

 

$   1,092,982

 

0.9

 

2.4

Adjusted SG&A expenses(2)

 

$   1,103,384

 

$   1,089,467

 

1.3

 

2.8

SG&A as % revenues

 

10.8

 

10.5

       

Adjusted SG&A as % revenues (2)

 

10.8

 

10.5

       

SG&A as % gross profit

 

72.8

 

72.8

       

Adjusted SG&A as % gross profit (2)

 

72.9

 

72.6

       

Operating margin %

 

3.2

 

2.7

       

Adjusted operating margin % (2)

 

3.6

 

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)See the section of this release entitled "Non-GAAP Financial Measures " and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.

 

Group 1 Automotive, Inc.

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

(Unaudited)

 (Dollars in thousands, except per share amounts)

             
   

Three Months Ended December 31,

   

2016

 

2015

 

% Increase/

(Decrease)

SG&A RECONCILIATION:

         
 

As reported

$ 227,411

 

$ 240,001

 

(5.2)

 

  Pre-tax adjustments:

         
 

   Catastrophic events 

-

 

(637)

   
 

   Gain on real estate and dealership transactions 

982

 

7,839

   
 

   Severance costs 

(1,837)

 

-

   
 

   Legal settlements (4)

11,671

 

-

   
 

Adjusted SG&A (1)

$ 238,227

 

$ 247,203

 

(3.6)

             

SG&A AS % REVENUES:

         
 

Unadjusted

10.5

 

10.6

   
 

Adjusted (1)

11.0

 

10.9

   

SG&A AS % GROSS PROFIT:

         
 

Unadjusted

68.6

 

71.9

   
 

Adjusted (1)

71.9

 

74.0

   

OPERATING MARGIN %

         
 

Unadjusted

3.8

 

2.9

   
 

Adjusted (1), (2)

3.8

 

3.4

   

PRETAX MARGIN %:

         
 

Unadjusted

2.7

 

1.9

   
 

Adjusted (1), (2)

2.6

 

2.3

   
             

SAME STORE SG&A RECONCILIATION:

         
             
 

As reported

$ 229,943

 

$ 238,889

 

(3.7)

 

  Pre-tax adjustments:

         
 

   Catastrophic events 

-

 

(637)

   
 

   Loss on real estate and dealership transactions 

-

 

(205)

   
 

   Severance costs 

(1,837)

 

-

   
 

   Legal settlements (4)

9,864

 

-

   
 

Adjusted Same Store SG&A (1)

$ 237,970

 

$ 238,047

 

(0.0)

             

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

10.6

 

10.9

   
 

Adjusted (1)

11.0

 

10.9

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

69.6

 

73.4

   
 

Adjusted (1)

72.0

 

73.1

   

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

3.7

 

2.8

   
 

Adjusted (1), (3)

3.8

 

3.5

   
             
   

 Twelve Months Ended December 31, 

   

2016

 

2015

 

% Increase/

(Decrease)

SG&A RECONCILIATION:

         
 

As reported

$ 965,139

 

$ 958,608

 

0.7

 

  Pre-tax adjustments:

         
 

   Catastrophic events 

(5,873)

 

(1,588)

   
 

   Gain on real estate and dealership transactions 

2,838

 

8,891

   
 

   Severance costs 

(1,837)

 

-

   
 

   Acquisition costs 

(30)

 

-

   
 

   Legal settlements (4)

11,671

 

(1,000)

   
 

Adjusted SG&A (1)

$ 971,908

 

$ 964,911

 

0.7

             

SG&A AS % REVENUES:

         
 

Unadjusted

11.0

 

10.8

   
 

Adjusted (1)

11.1

 

10.8

   

SG&A AS % OF GROSS PROFIT:

         
 

Unadjusted

71.2

 

71.6

   
 

Adjusted (1)

71.7

 

72.1

   

OPERATING MARGIN %:

         
 

 Unadjusted 

3.7

 

3.6

   
 

Adjusted (1), (2)

3.9

 

3.7

   

PRETAX MARGIN %:

         
 

Unadjusted

2.5

 

2.6

   
 

Adjusted (1), (2)

2.7

 

2.7

   
             

SAME STORE SG&A RECONCILIATION:

         
             
 

As reported

$ 952,597

 

$ 939,535

 

1.4

 

  Pre-tax adjustments:

         
 

     Catastrophic events 

(5,873)

 

(1,588)

   
 

     Loss on real estate and dealership transactions 

(385)

 

(569)

   
 

     Severance costs 

(1,837)

 

-

   
 

     Acquisition costs 

(30)

 

-

   
 

     Legal settlements (4)

9,864

 

(1,000)

   
 

Adjusted Same Store SG&A (1)

$ 954,336

 

$ 936,378

 

1.9

             

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

11.1

 

10.8

   
 

Adjusted (1)

11.1

 

10.8

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

71.5

 

71.6

   
 

Adjusted (1)

71.6

 

71.4

   

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

3.7

 

3.6

   
 

Adjusted (1), (3)

3.9

 

3.9

   
             

(1)

See the section of this release entitled "Non-GAAP Financial Measures " for information regarding non-GAAP financial measures and certain selected items that the Company believes impact comparability of financial results between reporting periods.

(2)

Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $9,406 and $21,794 for the three and twelve months ended December 31, 2016, respectively, and $18,197 and $18,983 for the three and twelve months ended December 31, 2015, respectively.

(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $9,344 and $21,653 for the three and twelve months ended December 31, 2016, respectively, and $15,749 and $16,535 for the three and twelve months ended December 31, 2015, respectively.

 (4)

For the three months ended December 31, 2016, the Company recognized a net pre-tax gain related to a settlement with an OEM of $11.7 million ($9.9 million on a Same Store basis).

 

Group 1 Automotive, Inc.

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

(Unaudited)

 (Dollars in thousands, except per share amounts)

             
   

Three Months Ended December 31,

   

2016

 

2015

 

% Increase/

(Decrease)

SG&A RECONCILIATION:

         
 

As reported

$   39,482

 

$   27,191

 

45.2

 

  Pre-tax adjustments:

         
 

   Loss on real estate and dealership transactions 

(223)

 

-

   
 

   Severance costs 

(122)

 

-

   
 

Adjusted SG&A (1)

$   39,137

 

$   27,191

 

43.9

             

SG&A AS % REVENUES:

         
 

Unadjusted

10.2

 

9.5

   
 

Adjusted (1)

10.1

 

9.5

   

SG&A AS % GROSS PROFIT:

         
 

Unadjusted

88.9

 

81.6

   
 

Adjusted (1)

88.1

 

81.6

   

OPERATING MARGIN %

         
 

Unadjusted

0.8

 

1.7

   
 

Adjusted (1), (2)

0.9

 

1.7

   

PRETAX MARGIN %:

         
 

Unadjusted

0.2

 

1.3

   
 

Adjusted (1), (2)

0.3

 

1.3

   
             

SAME STORE SG&A RECONCILIATION:

         
             
 

As reported

$   25,682

 

$   27,223

 

(5.7)

 

  Pre-tax adjustments:

         
 

   Loss on real estate and dealership transactions 

(61)

 

-

   
 

Adjusted Same Store SG&A (1)

$   25,621

 

$   27,223

 

(5.9)

             

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

9.6

 

9.5

   
 

Adjusted (1)

9.5

 

9.5

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

82.6

 

81.7

   
 

Adjusted (1)

82.4

 

81.7

   

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

1.6

 

1.7

   
 

Adjusted (1), (3)

1.6

 

1.7

   
             
   

 Twelve Months Ended December 31, 

   

2016

 

2015

 

% Increase/

(Decrease)

SG&A RECONCILIATION:

         
             
 

As reported

$ 158,636

 

$ 108,719

 

45.9

 

  Pre-tax adjustments:

         
 

   Loss on real estate and dealership transactions 

(223)

 

-

   
 

   Severance costs 

(122)

 

(208)

   
 

   Acquisition costs 

(561)

 

-

   
 

Adjusted SG&A (1)

$ 157,730

 

$ 108,511

 

45.4

             

SG&A AS % REVENUES:

         
 

Unadjusted

9.2

 

8.9

   
 

Adjusted (1)

9.2

 

8.9

   

SG&A AS % OF GROSS PROFIT:

         
 

Unadjusted

82.2

 

79.0

   
 

Adjusted (1)

81.7

 

78.8

   

OPERATING MARGIN %:

         
 

Unadjusted

1.6

 

2.0

   
 

Adjusted (1), (2)

1.7

 

2.0

   

PRETAX MARGIN %:

         
 

Unadjusted

1.1

 

1.5

   
 

Adjusted (1), (2)

1.1

 

1.6

   
             

SAME STORE SG&A RECONCILIATION:

         
             
 

As reported

$ 106,551

 

$ 108,770

 

(2.0)

 

  Pre-tax adjustments:

         
 

   Loss on real estate and dealership transactions 

(61)

 

-

   
 

   Severance costs 

-

 

(208)

   
 

   Acquisition costs 

(561)

 

-

   
 

Adjusted Same Store SG&A (1)

$ 105,929

 

$ 108,562

 

(2.4)

             

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

8.9

 

8.9

   
 

Adjusted (1)

8.8

 

8.9

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

77.9

 

79.0

   
 

Adjusted (1)

77.4

 

78.9

   

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

2.1

 

2.0

   
 

Adjusted (1), (3)

2.2

 

2.0

   
             

(1)

See the section of this release entitled "Non-GAAP Financial Measures " for information regarding non-GAAP financial measures and certain selected items that the Company believes impact comparability of financial results between reporting periods.

(2)

Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $201 for the three and twelve months ended December 31, 2016, respectively, and $333 for the twelve months ended December 31, 2015.

(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $333 for the twelve months ended December 31, 2015.

 

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Brazil

(Unaudited)

 (Dollars in thousands, except per share amounts)

             
   

Three Months Ended December 31,

   

2016

 

2015

 

% Increase/

(Decrease)

SG&A RECONCILIATION:

         
 

As reported

$  12,178

 

$  12,593

 

(3.3)

 

  Pre-tax adjustments:

         
 

   Loss on real estate and dealership transactions 

-

 

(520)

   
 

   Severance costs 

-

 

(226)

   
 

Adjusted SG&A (1)

$  12,178

 

$  11,847

 

2.8

             

SG&A AS % REVENUES:

         
 

Unadjusted

10.6

 

10.2

   
 

Adjusted (1)

10.6

 

9.6

   

SG&A AS % GROSS PROFIT:

         
 

Unadjusted

90.6

 

97.9

   
 

Adjusted (1)

90.6

 

92.1

   

OPERATING MARGIN %

         
 

Unadjusted

(8.2)

 

(54.8)

   
 

Adjusted (1), (2)

0.8

 

0.6

   

PRETAX MARGIN %:

         
 

Unadjusted

(8.5)

 

(55.0)

   
 

Adjusted (1), (2)

0.5

 

0.3

   
             

SAME STORE SG&A RECONCILIATION:

         
             
 

As reported

$  11,409

 

$  10,135

 

12.6

 

  Pre-tax adjustments:

         
 

   Severance costs 

-

 

(150)

   
 

Adjusted Same Store SG&A (1)

$  11,409

 

$    9,985

 

14.3

             

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

10.6

 

8.9

   
 

Adjusted (1)

10.6

 

8.7

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

89.3

 

87.2

   
 

Adjusted (1)

89.3

 

85.9

   

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

(8.2)

 

(56.4)

   
 

Adjusted (1), (3)

1.0

 

1.2

   
             
   

 Twelve Months Ended December 31, 

   

2016

 

2015

 

% Increase/

(Decrease)

SG&A RECONCILIATION:

         
 

As reported

$  46,988

 

$  53,506

 

(12.2)

 

  Pre-tax adjustments:

         
 

   Loss on real estate and dealership transactions 

(372)

 

(520)

   
 

   Severance costs 

-

 

(226)

   
 

   Foreign transaction tax 

(274)

 

-

   
 

Adjusted SG&A (1)

$  46,342

 

$  52,760

 

(12.2)

             

SG&A AS % REVENUES:

         
 

Unadjusted

10.9

 

10.3

   
 

Adjusted (1)

10.8

 

10.2

   

SG&A AS % OF GROSS PROFIT:

         
 

Unadjusted

100.5

 

93.3

   
 

Adjusted (1)

99.2

 

92.0

   

OPERATING MARGIN %:

         
 

Unadjusted

(2.9)

 

(12.8)

   
 

Adjusted (1), (2)

(0.2)

 

0.6

   

PRETAX MARGIN %:

         
 

Unadjusted

(3.0)

 

(13.2)

   
 

Adjusted (1), (2)

(0.3)

 

0.1

   
             

SAME STORE SG&A RECONCILIATION:

         
             
 

As reported

$  43,393

 

$  44,677

 

(2.9)

 

  Pre-tax adjustments:

         
 

   Severance costs 

-

 

(150)

   
 

   Foreign transaction tax 

(274)

 

-

   
 

Adjusted Same Store SG&A (1)

$  43,119

 

$  44,527

 

(3.2)

             

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

10.7

 

9.3

   
 

Adjusted (1)

10.6

 

9.2

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

96.5

 

85.2

   
 

Adjusted (1)

95.9

 

84.9

   

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

(2.4)

 

(12.3)

   
 

Adjusted (1), (3)

0.2

 

1.4

   
             

(1)

See the section of this release entitled "Non-GAAP Financial Measures " for information regarding non-GAAP financial measures and certain selected items that the Company believes impact comparability of financial results between reporting periods.

(2)

Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $10,420 and $10,843 for the three and twelve months ended December 31, 2016, respectively, and $67,410 and $68,249 for the three and twelve months ended December 31, 2015, respectively.

(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $9,901 and $10,324 for the three and twelve months ended December 31, 2016, respectively, and $65,806 and $66,021 for the three and twelve months ended December 31, 2015, respectively.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - CONSOLIDATED

(Unaudited)

 (Dollars in thousands, except per share amounts)

             
   

Three Months Ended December 31,

   

2016

 

2015

 

% Increase/

(Decrease)

             

NET INCOME RECONCILIATION:

         
 

As reported

$      30,828

 

$    (33,387)

 

192.3

 

  Pre-tax adjustments:

         
 

   Catastrophic events 

         
 

   Pre-tax 

-

 

637

   
 

   Tax impact 

-

 

(239)

   
 

   Gain on real estate and dealership transactions 

         
 

   Pre-tax 

(529)

 

(7,319)

   
 

   Tax impact 

264

 

2,962

   
 

   Severance costs 

         
 

   Pre-tax 

1,959

 

227

   
 

   Tax impact 

(710)

 

(7)

   
 

   Legal settlements (4)

         
 

   Pre-tax 

(11,671)

 

-

   
 

   Tax impact 

4,359

 

-

   
 

   Non-cash asset impairment 

         
 

   Pre-tax 

19,797

 

85,607

   
 

   Tax impact 

(7,041)

 

(12,809)

   
 

  Adjusted net income (1)

$      37,256

 

$      35,672

 

4.4

             

ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION:

         
 

Adjusted net income (1)

$      37,256

 

$      35,672

 

4.4

 

Less: Adjusted earnings allocated to participating securities

1,477

 

1,344

 

9.9

 

Adjusted net income available to diluted common shares (1)

$      35,779

 

$      34,328

 

4.2

             

 DILUTED (LOSS) INCOME PER COMMON SHARE RECONCILIATION: 

       
 

As reported

$          1.44

 

$        (1.41)

 

202.1

 

  Pre-tax adjustments:

         
 

   Catastrophic events 

-

 

0.02

   
 

   Gain on real estate and dealership transactions 

(0.01)

 

(0.18)

   
 

   Severance costs 

0.06

 

0.01

   
 

   Legal settlements (4)

(0.34)

 

-

   
 

   Non-cash asset impairment 

0.59

 

3.07

   
 

Adjusted diluted income per share (1)

$          1.74

 

$          1.51

 

15.2

             

SG&A RECONCILIATION:

         
 

As reported

$    279,071

 

$    279,785

 

(0.3)

 

  Pre-tax adjustments:

         
 

   Catastrophic events 

-

 

(637)

   
 

   Gain on real estate and dealership transactions 

759

 

7,318

   
 

   Severance costs 

(1,959)

 

(226)

   
 

   Legal settlements (4)

11,671

 

-

   
 

Adjusted SG&A (1)

$    289,542

 

$    286,240

 

1.2

             

SG&A AS % REVENUES:

         
 

Unadjusted

10.4

 

10.5

   
 

Adjusted (1)

10.8

 

10.7

   

SG&A AS % GROSS PROFIT:

         
 

Unadjusted

71.7

 

73.6

   
 

Adjusted (1)

74.4

 

75.3

   

OPERATING MARGIN %

         
 

Unadjusted

2.9

 

0.1

   
 

Adjusted (1), (2)

3.2

 

3.1

   

PRETAX MARGIN %:

         
 

Unadjusted

1.8

 

(0.8)

   
 

Adjusted (1), (2)

2.2

 

2.1

   
             

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$    267,034

 

$    276,247

 

(3.3)

 

  Pre-tax adjustments:

         
 

   Catastrophic events 

-

 

(637)

   
 

   Loss on real estate and dealership transactions 

(61)

 

(205)

   
 

   Severance costs 

(1,837)

 

(150)

   
 

   Legal settlements (4)

9,864

 

-

   
 

Adjusted Same Store SG&A (1)

$    275,000

 

$    275,255

 

(0.1)

             

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

10.5

 

10.7

   
 

Adjusted (1)

10.8

 

10.6

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

71.3

 

74.6

   
 

Adjusted (1)

73.4

 

74.3

   

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

3.0

 

0.1

   
 

Adjusted (1), (3)

3.4

 

3.2

   
             
   

 Twelve Months Ended December 31, 

   

2016

 

2015

 

% Increase/

(Decrease)

NET INCOME RECONCILIATION:

         
 

As reported

$    147,065

 

$      93,999

 

56.5

 

  Pre-tax adjustments:

         
 

   Catastrophic events 

         
 

   Pre-tax 

5,873

 

1,588

   
 

   Tax impact 

(2,207)

 

(597)

   
 

   Gain on real estate and dealership transactions 

         
 

   Pre-tax 

(1,530)

 

(8,372)

   
 

   Tax impact 

937

 

3,413

   
 

   Severance costs 

         
 

   Pre-tax 

1,959

 

435

   
 

   Tax impact 

(710)

 

(48)

   
 

   Acquisition costs including related tax impact 

         
 

   Pre-tax 

591

 

-

   
 

   Tax impact 

(11)

 

-

   
 

   Legal settlements (4)

         
 

   Pre-tax 

(11,671)

 

1,000

   
 

   Tax impact 

4,359

 

(390)

   
 

   Foreign transaction tax 

         
 

   Pre-tax 

274

 

-

   
 

   Tax impact 

-

 

-

   
 

   Non-cash asset impairment 

         
 

   Pre-tax 

32,124

 

87,565

   
 

   Tax impact 

(11,676)

 

(13,143)

   
 

   Foreign deferred income tax benefit 

         
 

   Pre-tax 

-

 

-

   
 

   Tax impact 

(1,686)

 

-

   
 

  Adjusted net income (1)

$    163,691

 

$    165,450

 

(1.1)

             

ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION:

         
 

Adjusted net income (1)

$    163,691

 

$    165,450

 

(1.1)

 

Less: Adjusted earnings allocated to participating securities

6,537

 

6,338

 

3.1

 

Adjusted net income available to diluted common shares (1)

$    157,154

 

$    159,112

 

(1.2)

             

 DILUTED INCOME PER COMMON SHARE RECONCILIATION: 

       
 

As reported

$          6.67

 

$          3.90

 

71.0

 

  Pre-tax adjustments:

         
 

   Catastrophic events 

0.17

 

0.04

   
 

   Gain on real estate and dealership transactions 

(0.03)

 

(0.21)

   
 

   Severance costs 

0.05

 

0.02

   
 

   Acquisition costs including related tax impact 

0.02

 

-

   
 

   Legal settlements (4)

(0.33)

 

0.03

   
 

   Foreign transaction tax 

0.01

 

-

   
 

   Non-cash asset impairment 

0.93

 

3.09

   
 

   Foreign deferred income tax benefit 

(0.07)

 

-

   
 

Adjusted diluted income per share (1)

$          7.42

 

$          6.87

 

8.0

             
             

SG&A RECONCILIATION:

         
 

As reported

$ 1,170,763

 

$ 1,120,833

 

4.5

 

  Pre-tax adjustments:

         
 

   Catastrophic events 

(5,873)

 

(1,588)

   
 

   Gain on real estate and dealership transactions 

2,243

 

8,372

   
 

   Severance costs 

(1,959)

 

(435)

   
 

   Acquisition costs 

(591)

 

-

   
 

   Legal settlements (4)

11,671

 

(1,000)

   
 

   Foreign transaction tax 

(274)

 

-

   
 

Adjusted SG&A (1)

$ 1,175,980

 

$ 1,126,182

 

4.4

             

SG&A AS % REVENUES:

         
 

Unadjusted

10.8

 

10.5

   
 

Adjusted (1)

10.8

 

10.6

   

SG&A AS % OF GROSS PROFIT:

         
 

Unadjusted

73.4

 

73.1

   
 

Adjusted (1)

73.7

 

73.4

   

OPERATING MARGIN %:

         
 

Unadjusted

3.1

 

2.6

   
 

Adjusted (1), (2)

3.4

 

3.4

   

PRETAX MARGIN %:

         
 

Unadjusted

2.1

 

1.7

   
 

Adjusted (1), (2)

2.3

 

2.5

   
             

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$ 1,102,541

 

$ 1,092,982

 

0.9

 

  Pre-tax adjustments:

         
 

   Catastrophic events 

(5,873)

 

(1,588)

   
 

   Loss on real estate and dealership transactions 

(446)

 

(569)

   
 

   Severance costs 

(1,837)

 

(358)

   
 

   Acquisition costs 

(591)

 

-

   
 

   Legal settlements (4)

9,864

 

(1,000)

   
 

   Foreign transaction tax 

(274)

 

-

   
 

Adjusted Same Store SG&A (1)

$ 1,103,384

 

$ 1,089,467

 

1.3

             

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

10.8

 

10.5

   
 

Adjusted (1)

10.8

 

10.5

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

72.8

 

72.8

   
 

Adjusted (1)

72.9

 

72.6

   

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

3.2

 

2.7

   
 

Adjusted (1), (3)

3.6

 

3.5

   
             

(1)

See the section of this release entitled "Non-GAAP Financial Measures " for information regarding non-GAAP financial measures and certain selected items that the Company believes impact comparability of financial results between reporting periods.

(2)

Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $20,027 and $32,838 for the three and twelve months ended December 31, 2016, respectively, and $85,606 and $87,565 for the three and twelve months ended December 31, 2015, respectively.

(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $19,245 and $31,977 for the three and twelve months ended December 31, 2016, respectively, and $81,555 and $82,889 for the three and twelve months ended December 31, 2015, respectively.

(4)

For the three months ended December 31, 2016, the Company recognized a net pre-tax gain related to a settlement with an OEM of $11.7 million ($9.9 million on a Same Store basis).

 

 

SOURCE Group 1 Automotive, Inc.


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