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Group 1 Automotive

800 Gessner
Houston, TX 77024

  • Sales: (713) 647-5700
Investor Relations

Group 1 Automotive Reports First Quarter 2017 Financial Results

HOUSTON, April 28, 2017 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), ("Group 1" or the "Company"), an international, Fortune 500 automotive retailer, today reported 2017 first quarter net income of $33.9 million, diluted earnings per common share of $1.58, adjusted net income (a non-GAAP measure) of $32.8 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $1.53.

First quarter 2017 adjusted net income and diluted earnings per share exclude a non-core benefit of approximately $1.1 million after-tax, or $0.05 per share, related to a settlement with an Original Equipment Manufacturer (OEM). Reconciliations of non-GAAP financial measures are included in the attached financial tables.

"Although we had another strong performance in our U.S. new vehicle margins, a record quarter in the U.K., and a profitable quarter in Brazil, these factors were not enough to offset extreme weakness in vehicle sales in our energy price impacted markets. Combined new and used sales dropped 11 percent in Texas and Oklahoma, with the new vehicle industry declining 16 percent for the quarter in our largest single market of Houston. With a decrease of 13 percent in new vehicle sales at our Houston stores, we outperformed the local market, but we still need to make further adjustments to our businesses in the energy price impacted markets," said Earl J. Hesterberg, Group 1's president and chief executive officer. "As for our overseas markets, our U.K. operations had another record quarter, with revenue growth across all business segments and gross profit up double digits on a constant currency basis. And finally, in the face of continued pressure on Brazil's new vehicle industry during the quarter, we are also delighted to have achieved profitability in our Brazil Region by growing gross profit 13 percent on a Same Store constant currency basis reflecting tremendous performance in used vehicles, parts and service, and F&I, and by significantly leveraging our costs."

Consolidated Results for First Quarter 2017 (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 decreased 3.4 percent ((1.5) percent) to $2.5 billion; total gross profit decreased 1.4 percent ((0.1) percent) to $383.5 million.
  • New vehicle revenues decreased 5.2 percent ((3.1) percent) on a 6.1 percent decrease in unit sales. New vehicle gross profit decreased 3.5 percent ((1.3) percent) to $69.2 million, as improved new vehicle margins partially offset the volume decline. U.S. Same Store new vehicle margins were up 5.1 percent or $91 per unit to $1,862.
  • Retail used vehicle revenues decreased 4.0 percent ((2.0) percent) on a 3.7 percent decrease in unit sales. Retail used vehicle gross profit decreased 8.5 percent ((7.5) percent) to $45.0 million reflecting the impact of lower margins, down $74 per unit, in combination with the volume decline.
  • Parts and service gross profit increased 3.5 percent (4.9 percent) on revenue growth of 3.6 percent (4.7 percent). Same Store parts and service gross profit increased 3.4 percent (4.4 percent) on revenue growth of 3.8 percent (4.6 percent).
  • Same Store Finance and Insurance (F&I) gross profit per retail unit (PRU) increased 2.0 percent (2.8 percent) to $1,410 per retail unit. U.S. F&I gross profit per unit increased $73 to a first quarter record of $1,637.
  • Selling, General and Administrative (SG&A) expenses as a percent of gross profit increased 10 basis points to 75.6 percent. Adjusted SG&A expenses as a percent of gross profit (a non-GAAP measure) increased 120 basis points to 76.0 percent.

 

Segment Results for First Quarter 2017 (year-over-year comparable basis)

  • United States:
    The Company's U.S. operations accounted for 78.1 percent of total revenues and 83.6 percent of total gross profit. U.S. revenues were $2.0 billion, a decrease of 5.5 percent. The revenue decrease reflects 10.7 percent and 7.1 percent decreases in retail new and used vehicle unit sales, respectively. The vast majority of the sales decline came from the Company's oil-impacted markets of Texas and Oklahoma. Gross profit decreased 3.6 percent.
  • United Kingdom:
    The Company's U.K. operations accounted for 17.9 percent of total revenues and 13.1 percent of total gross profit. Despite a 14 percent weakening in the pound, total revenue grew 4.3 percent (20.5 percent) to $450.3 million, and gross profit increased 7.6 percent (24.3 percent). Revenue growth was primarily driven by 22.6 percent and 22.1 percent increases in new and used vehicle retail unit sales, respectively.
  • Brazil:
    The Company's Brazilian operations accounted for 4.0 percent of total revenues and 3.3 percent of total gross profit. Despite continued weakness in Brazil's new vehicle industry volumes, which contributed to decreased Same Store total revenue of 13.4 percent on a constant currency basis, gross profit increased 13.0 percent, reflecting strong growth in Same Store total used vehicles gross profit (up almost 180 percent), and a 17.6 percent increase in Same Store parts and sales gross profit. In addition, Same Store F&I gross profit PRU increased 64.5 percent on a constant currency basis. The increase in gross profit, coupled with significantly improved cost leverage, allowed the region to achieve profitability in the quarter.

 

Corporate Development

In January 2017, as previously announced, the Company acquired a BMW motorcycle franchise in Brazil, which is expected to generate approximately $5 million in annual revenues. In March 2017, the Company opened Think Ford Reading, an add point in the U.K., which is contiguous to our existing Ford market. This expands the Company's U.K. Ford network to seven dealerships. In April 2017, the Company also opened Cedar Park Nissan, an add point in Austin, Texas. This addition increases Group 1's U.S. Nissan network to nine dealerships. These add points are expected to generate approximately $60 million in annual revenues.

In February 2017, as previously announced, the Company disposed of two Nissan dealerships in Brazil. These stores generated approximately $25 million in trailing-twelve-month revenues.

Share Repurchase Authorization

As of April 28, 2017, $22.4 million remains available under the Company's prior common stock share repurchase authorization. Purchases may be made from time to time in the open market or in privately negotiated transactions, based on market conditions, legal requirements and other corporate considerations and subject to Board approval and covenant restrictions.

First Quarter 2017 Earnings Conference Call Details

Group 1's senior management will host a conference call today at 9 a.m. ET to discuss the first quarter financial results and the Company's outlook and strategy.

The conference call will be simulcast live on the Internet at www.group1auto.com. 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:    

7461950

A telephonic replay will be available following the call through May 5, 2017 by dialing:

Domestic:           

1-877-344-7529

International:       

1-412-317-0088

Replay ID:           

10105151

About Group 1 Automotive, Inc.
Group 1 owns and operates 159 automotive dealerships, 210 franchises, and 45 collision centers in the United States, the United Kingdom and Brazil that offer 30 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 March 31, 

 

2017

 

2016

 

% Increase/
(Decrease)

REVENUES:

         

New vehicle retail sales

$ 1,337,213

 

$ 1,409,851

 

(5.2)

Used vehicle retail sales

660,927

 

688,171

 

(4.0)

Used vehicle wholesale sales

104,157

 

101,592

 

2.5

Parts and service

319,698

 

308,592

 

3.6

Finance, insurance and other, net

96,834

 

100,149

 

(3.3)

Total revenues

2,518,829

 

2,608,355

 

(3.4)

           

COST OF SALES:

         

New vehicle retail sales

1,267,986

 

1,338,124

 

(5.2)

Used vehicle retail sales

615,922

 

638,971

 

(3.6)

Used vehicle wholesale sales

104,057

 

100,143

 

3.9

Parts and service

147,342

 

142,016

 

3.8

Total cost of sales

2,135,307

 

2,219,254

 

(3.8)

           

GROSS PROFIT

383,522

 

389,101

 

(1.4)

           

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

289,779

 

293,664

 

(1.3)

           

DEPRECIATION AND AMORTIZATION EXPENSE

13,606

 

12,464

 

9.2

           

ASSET IMPAIRMENTS

-

 

932

 

(100.0)

           

OPERATING INCOME

80,137

 

82,041

 

(2.3)

           

OTHER EXPENSE:

         

Floorplan interest expense

(11,942)

 

(11,010)

 

8.5

Other interest expense, net

(16,999)

 

(16,929)

 

0.4

INCOME BEFORE INCOME TAXES

51,196

 

54,102

 

(5.4)

           

PROVISION FOR INCOME TAXES

(17,257)

 

(19,811)

 

(12.9)

           

NET INCOME

$       33,939

 

$       34,291

 

(1.0)

Less: Earnings allocated to participating securities

$         1,250

 

$         1,348

 

(7.3)

Earnings available to diluted common shares

$       32,689

 

$       32,943

 

(0.8)

DILUTED EARNINGS PER SHARE

$           1.58

 

$           1.47

 

7.5

Weighted average dilutive common shares outstanding

20,698

 

22,453

 

(7.8)

Weighted average participating securities

818

 

921

 

(11.2)

Total weighted average shares outstanding

21,516

 

23,374

 

(7.9)

 

Group 1 Automotive, Inc.

Consolidated Balance Sheets

(Dollars in thousands)

             
   

March 31,
2017

 

December 31,
2016

 

% Increase/
(Decrease)

 ASSETS: 

 

(Unaudited)

       

 CURRENT ASSETS: 

           

 Cash and cash equivalents 

 

$       33,770

 

$       20,992

 

60.9

 Contracts in transit and vehicle receivables, net 

 

213,772

 

269,508

 

(20.7)

 Accounts and notes receivable, net 

 

152,794

 

173,364

 

(11.9)

 Inventories, net 

 

1,729,525

 

1,651,815

 

4.7

 Prepaid expenses and other current assets 

 

23,216

 

34,908

 

(33.5)

 Total current assets 

 

2,153,077

 

2,150,587

 

0.1

 PROPERTY AND EQUIPMENT, net 

 

1,152,395

 

1,125,883

 

2.4

 GOODWILL AND INTANGIBLE FRANCHISE RIGHTS 

 

1,162,351

 

1,161,639

 

0.1

 OTHER ASSETS 

 

21,540

 

23,794

 

(9.5)

 Total assets 

 

$ 4,489,363

 

$ 4,461,903

 

0.6

             

 LIABILITIES AND STOCKHOLDERS' EQUITY: 

           

 CURRENT LIABILITIES: 

           

 Floorplan notes payable - credit facility and other 

 

$ 1,170,383

 

$ 1,136,654

 

3.0

 Offset account related to floorplan notes payable - credit facility 

 

(97,149)

 

(59,626)

 

62.9

 Floorplan notes payable - manufacturer affiliates 

 

392,388

 

392,661

 

(0.1)

 Offset account related to floorplan notes payable - manufacturer affiliates 

 

(26,750)

 

(25,500)

 

4.9

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

 

46,340

 

72,419

 

(36.0)

 Current liabilities from interest rate risk management activities 

 

2,597

 

3,941

 

(34.1)

 Accounts payable 

 

347,746

 

356,099

 

(2.3)

 Accrued expenses 

 

185,720

 

176,469

 

5.2

 Total current liabilities 

 

2,021,275

 

2,053,117

 

(1.6)

 5.00% SENIOR NOTES (principal of $550,000 at March 31, 2017 and December 31, 2016, respectively) 

 

540,858

 

540,465

 

0.1

 5.25% SENIOR NOTES (principal of $300,000 at March 31, 2017 and December 31, 2016, respectively) 

 

295,729

 

295,591

 

0.0

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

 

345,775

 

333,326

 

3.7

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

 

42,356

 

43,427

 

(2.5)

 DEFERRED INCOME TAXES 

 

168,772

 

161,502

 

4.5

 LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES 

 

17,762

 

20,470

 

(13.2)

 OTHER LIABILITIES 

 

87,876

 

83,805

 

4.9

 STOCKHOLDERS' EQUITY: 

           

 Common stock 

 

256

 

257

 

(0.4)

 Additional paid-in capital 

 

285,455

 

290,899

 

(1.9)

 Retained earnings 

 

1,082,101

 

1,053,301

 

2.7

 Accumulated other comprehensive loss 

 

(140,149)

 

(146,944)

 

(4.6)

 Treasury stock 

 

(258,703)

 

(267,313)

 

(3.2)

 Total stockholders' equity 

 

968,960

 

930,200

 

4.2

 Total liabilities and stockholders' equity 

 

$ 4,489,363

 

$ 4,461,903

 

0.6

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

           
     

Three Months Ended

     

March 31,

     

2017 (%)

 

2016 (%)

NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:

     

Region

Geographic Market

       

East

Georgia

 

4.5

 

3.8

 

Massachusetts

 

4.2

 

5.0

 

Florida

 

2.5

 

2.4

 

New Hampshire

 

1.8

 

1.7

 

New Jersey

 

1.6

 

1.6

 

Louisiana

 

1.6

 

1.4

 

Mississippi

 

1.5

 

1.5

 

South Carolina

 

1.3

 

1.4

 

Alabama

 

1.2

 

0.8

 

Maryland

 

0.4

 

0.4

     

20.6

 

20.0

           

West

Texas

 

34.8

 

37.0

 

California

 

7.9

 

9.0

 

Oklahoma

 

6.4

 

7.2

 

Kansas

 

1.6

 

1.8

 

Louisiana

 

0.5

 

0.6

     

51.2

 

55.6

           

International

United Kingdom

 

23.6

 

18.0

 

Brazil

 

4.6

 

6.4

     

100.0

 

100.0

           

NEW VEHICLE UNIT SALES BRAND MIX:

       

Toyota/Scion/Lexus

 

23.2

 

23.8

BMW/MINI

 

14.3

 

13.1

Ford/Lincoln

 

12.8

 

11.5

Volkswagen/Audi/Porsche

 

12.5

 

10.6

Honda/Acura

 

9.1

 

10.5

Nissan

 

8.2

 

7.9

Chevrolet/GMC/Buick/Cadillac

 

6.7

 

7.8

Mercedes-Benz/smart/Sprinter

 

3.9

 

3.7

Chrysler/Dodge/Jeep/RAM

 

3.7

 

4.0

Hyundai/Kia

 

3.4

 

4.7

Other

 

2.2

 

2.4

     

100.0

 

100.0

 

Group 1 Automotive, Inc.

Additional Information - U.S.

(Unaudited)

(Dollars in thousands, except per unit amounts)

             
   

Three Months Ended March 31,

   

2017

 

2016

 

% Increase/
(Decrease)

REVENUES:

           

New vehicle retail sales

 

$ 1,018,249

 

$ 1,100,393

 

(7.5)

Used vehicle retail sales

 

521,947

 

558,764

 

(6.6)

Used vehicle wholesale sales

 

70,545

 

68,873

 

2.4

Total used

 

592,492

 

627,637

 

(5.6)

Parts and service

 

271,159

 

263,458

 

2.9

Finance, insurance and other, net

 

85,819

 

90,145

 

(4.8)

Total

 

$ 1,967,719

 

$ 2,081,633

 

(5.5)

             

GROSS MARGIN %:

           

New vehicle retail sales

 

5.0

 

4.9

   

Used vehicle retail sales

 

7.3

 

7.8

   

Used vehicle wholesale sales

 

(0.5)

 

1.2

   

Total used

 

6.3

 

7.1

   

Parts and service

 

53.8

 

54.7

   

Finance, insurance and other, net

 

100.0

 

100.0

   

Total

 

16.3

 

16.0

   
             

GROSS PROFIT:

           

New vehicle retail sales

 

$       51,209

 

$       54,146

 

(5.4)

Used vehicle retail sales

 

37,932

 

43,455

 

(12.7)

Used vehicle wholesale sales

 

(362)

 

844

 

(142.9)

Total used

 

37,570

 

44,299

 

(15.2)

Parts and service

 

145,998

 

144,120

 

1.3

Finance, insurance and other, net

 

85,819

 

90,145

 

(4.8)

Total 

 

$    320,596

 

$    332,710

 

(3.6)

             

UNITS SOLD:

           

Retail new vehicles sold

 

27,498

 

30,801

 

(10.7)

Retail used vehicles sold

 

24,929

 

26,831

 

(7.1)

Wholesale used vehicles sold

 

9,981

 

10,413

 

(4.1)

Total used

 

34,910

 

37,244

 

(6.3)

             

AVERAGE RETAIL SALES PRICE:

           

New vehicle retail

 

$       37,030

 

$       35,726

 

3.7

Used vehicle retail

 

$       20,937

 

$       20,825

 

0.5

             

GROSS PROFIT PER UNIT SOLD:

           

New vehicle retail sales

 

$         1,862

 

$         1,758

 

5.9

Used vehicle retail sales

 

1,522

 

1,620

 

(6.0)

Used vehicle wholesale sales

 

(36)

 

81

 

(144.4)

Total used

 

1,076

 

1,189

 

(9.5)

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

 

$         1,637

 

$         1,564

 

4.7

             

OTHER: 

           

SG&A expenses

 

$    236,273

 

$    245,838

 

(3.9)

Adjusted SG&A expenses(1)

 

$    238,106

 

$    244,086

 

(2.4)

SG&A as % revenues

 

12.0

 

11.8

   

Adjusted SG&A as % revenues (1)

 

12.1

 

11.7

   

SG&A as % gross profit

 

73.7

 

73.9

   

Adjusted SG&A as % gross profit (1)

 

74.3

 

73.4

   

Operating margin %

 

3.7

 

3.6

   

Adjusted operating margin % (1)

 

3.6

 

3.7

   

Pretax margin %

 

2.3

 

2.4

   

Adjusted pretax margin % (1)

 

2.2

 

2.5

   
             

INTEREST EXPENSE:

           

Floorplan interest expense

 

$     (10,878)

 

$     (10,049)

 

8.2

Floorplan assistance

 

10,284

 

11,251

 

(8.6)

Net floorplan (expense) income

 

$          (594)

 

$         1,202

 

(149.4)

Other interest expense, net

 

$     (16,272)

 

$     (15,513)

 

4.9

 

(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 March 31,

   

2017

 

2016

 

% Increase/
(Decrease)

 

Constant Currency(1)
% Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$ 258,640

 

$ 246,536

 

4.9

 

21.3

Used vehicle retail sales

 

115,369

 

110,117

 

4.8

 

21.1

Used vehicle wholesale sales

 

30,509

 

32,032

 

(4.8)

 

10.1

Total used

 

145,878

 

142,149

 

2.6

 

18.6

Parts and service

 

36,781

 

34,549

 

6.5

 

23.0

Finance, insurance and other, net

 

9,028

 

8,662

 

4.2

 

20.5

Total

 

$ 450,327

 

$ 431,896

 

4.3

 

20.5

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.6

 

5.6

       

Used vehicle retail sales

 

4.7

 

4.7

       

Used vehicle wholesale sales

 

0.7

 

1.8

       

Total used

 

3.9

 

4.1

       

Parts and service

 

57.7

 

53.4

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

11.2

 

10.8

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$   14,401

 

$   13,854

 

3.9

 

20.2

Used vehicle retail sales

 

5,429

 

5,210

 

4.2

 

20.5

Used vehicle wholesale sales

 

211

 

572

 

(63.1)

 

(57.9)

Total used

 

5,640

 

5,782

 

(2.5)

 

12.7

Parts and service

 

21,225

 

18,448

 

15.1

 

33.0

Finance, insurance and other, net

 

9,028

 

8,662

 

4.2

 

20.5

Total 

 

$   50,294

 

$   46,746

 

7.6

 

24.3

                 

UNITS SOLD:

               

Retail new vehicles sold

 

9,018

 

7,358

 

22.6

   

Retail used vehicles sold

 

5,611

 

4,595

 

22.1

   

Wholesale used vehicles sold

 

4,169

 

3,642

 

14.5

   

Total used

 

9,780

 

8,237

 

18.7

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$   28,680

 

$   33,506

 

(14.4)

 

(1.1)

Used vehicle retail

 

$   20,561

 

$   23,965

 

(14.2)

 

(0.8)

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$      1,597

 

$      1,883

 

(15.2)

 

(2.0)

Used vehicle retail sales

 

968

 

1,134

 

(14.6)

 

(1.3)

Used vehicle wholesale sales

 

51

 

157

 

(67.5)

 

(63.2)

Total used

 

577

 

702

 

(17.8)

 

(5.1)

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

 

$         617

 

$         725

 

(14.9)

 

(1.6)

                 

OTHER: 

               

SG&A expenses

 

$   41,624

 

$   37,436

 

11.2

 

28.5

Adjusted SG&A expenses(1)

 

$   41,624

 

$   36,875

 

12.9

 

30.4

SG&A as % revenues

 

9.2

 

8.7

       

Adjusted SG&A as % revenues (1)

 

9.2

 

8.5

       

SG&A as % gross profit

 

82.8

 

80.1

       

Adjusted SG&A as % gross profit (1)

 

82.8

 

78.9

       

Operating margin %

 

1.6

 

1.8

       

Adjusted operating margin % (1)

 

1.6

 

1.9

       

Pretax margin %

 

1.2

 

1.3

       

Adjusted pretax margin % (1)

 

1.2

 

1.4

       
                 

INTEREST EXPENSE:

               

Floorplan interest expense

 

$    (1,034)

 

$       (920)

 

12.4

 

29.7

Floorplan assistance

 

229

 

263

 

(12.9)

 

0.5

Net floorplan expense

 

$       (805)

 

$       (657)

 

22.5

 

41.5

Other interest expense, net

 

$       (581)

 

$    (1,282)

 

(54.7)

 

(47.9)

 

(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 March 31,

   

2017

 

2016

 

% Increase/
(Decrease)

 

Constant Currency (1)
% Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$   60,324

 

$ 62,922

 

(4.1)

 

(22.5)

Used vehicle retail sales

 

23,611

 

19,290

 

22.4

 

(1.3)

Used vehicle wholesale sales

 

3,103

 

687

 

351.7

 

263.1

Total used

 

26,714

 

19,977

 

33.7

 

7.8

Parts and service

 

11,758

 

10,585

 

11.1

 

(10.3)

Finance, insurance and other, net

 

1,987

 

1,342

 

48.1

 

19.1

Total

 

$ 100,783

 

$ 94,826

 

6.3

 

(14.2)

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

6.0

 

5.9

       

Used vehicle retail sales

 

7.0

 

2.8

       

Used vehicle wholesale sales

 

8.1

 

4.8

       

Total used

 

7.1

 

2.8

       

Parts and service

 

43.7

 

37.9

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

12.5

 

10.2

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$      3,617

 

$   3,727

 

(3.0)

 

(21.9)

Used vehicle retail sales

 

1,644

 

535

 

207.3

 

147.2

Used vehicle wholesale sales

 

251

 

33

 

660.6

 

514.3

Total used

 

1,895

 

568

 

233.6

 

168.3

Parts and service

 

5,133

 

4,008

 

28.1

 

3.3

Finance, insurance and other, net

 

1,987

 

1,342

 

48.1

 

19.1

Total 

 

$   12,632

 

$   9,645

 

31.0

 

5.5

                 

UNITS SOLD:

               

Retail new vehicles sold

 

1,774

 

2,622

 

(32.3)

   

Retail used vehicles sold

 

1,026

 

1,365

 

(24.8)

   

Wholesale used vehicles sold

 

379

 

311

 

21.9

   

Total used

 

1,405

 

1,676

 

(16.2)

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$   34,005

 

$ 23,998

 

41.7

 

14.5

Used vehicle retail

 

$   23,013

 

$ 14,132

 

62.8

 

31.3

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$      2,039

 

$   1,421

 

43.5

 

15.5

Used vehicle retail sales

 

1,602

 

392

 

308.7

 

228.9

Used vehicle wholesale sales

 

662

 

106

 

524.5

 

404.1

Total used

 

1,349

 

339

 

297.9

 

220.0

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

 

$         710

 

$       337

 

110.7

 

69.7

                 

OTHER: 

               

SG&A expenses

 

$   11,882

 

$ 10,390

 

14.4

 

(7.9)

Adjusted SG&A expenses(1)

 

$   11,882

 

$ 10,019

 

18.6

 

(4.5)

SG&A as % revenues

 

11.8

 

11.0

       

Adjusted SG&A as % revenues (1)

 

11.8

 

10.6

       

SG&A as % gross profit

 

94.1

 

107.7

       

Adjusted SG&A as % gross profit (1)

 

94.1

 

103.9

       

Operating margin %

 

0.4

 

(1.5)

       

Adjusted operating margin % (1)

 

0.4

 

(0.7)

       

Pretax margin %

 

0.2

 

(1.7)

       

Adjusted pretax margin % (1)

 

0.2

 

(0.9)

       
                 

INTEREST EXPENSE:

               

Floorplan interest expense

 

$         (30)

 

$       (41)

 

(26.8)

 

(42.6)

Floorplan assistance

 

 

 

-

 

-

Net floorplan expense

 

$         (30)

 

$       (41)

 

(26.8)

 

(42.6)

Other interest expense, net

 

$       (146)

 

$     (134)

 

9.0

 

(13.6)

 

(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 - Consolidated

(Unaudited)

(Dollars in thousands, except per unit amounts)

                 
   

Three Months Ended March 31,

   

2017

 

2016

 

% Increase/
(Decrease)

 

Constant Currency % (1)
Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$ 1,337,213

 

$ 1,409,851

 

(5.2)

 

(3.1)

Used vehicle retail sales

 

660,927

 

688,171

 

(4.0)

 

(2.0)

Used vehicle wholesale sales

 

104,157

 

101,592

 

2.5

 

6.6

Total used

 

765,084

 

789,763

 

(3.1)

 

(0.9)

Parts and service

 

319,698

 

308,592

 

3.6

 

4.7

Finance, insurance and other, net

 

96,834

 

100,149

 

(3.3)

 

(2.3)

Total

 

$ 2,518,829

 

$ 2,608,355

 

(3.4)

 

(1.5)

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.2

 

5.1

       

Used vehicle retail sales

 

6.8

 

7.1

       

Used vehicle wholesale sales

 

0.1

 

1.4

       

Total used

 

5.9

 

6.4

       

Parts and service

 

53.9

 

54.0

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

15.2

 

14.9

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$       69,227

 

$       71,727

 

(3.5)

 

(1.3)

Used vehicle retail sales

 

45,005

 

49,200

 

(8.5)

 

(7.5)

Used vehicle wholesale sales

 

100

 

1,449

 

(93.1)

 

(94.6)

Total used

 

45,105

 

50,649

 

(10.9)

 

(9.9)

Parts and service

 

172,356

 

166,576

 

3.5

 

4.9

Finance, insurance and other, net

 

96,834

 

100,149

 

(3.3)

 

(2.3)

Total 

 

$    383,522

 

$    389,101

 

(1.4)

 

(0.1)

                 

UNITS SOLD:

               

Retail new vehicles sold

 

38,290

 

40,781

 

(6.1)

   

Retail used vehicles sold

 

31,566

 

32,791

 

(3.7)

   

Wholesale used vehicles sold

 

14,529

 

14,366

 

1.1

   

Total used

 

46,095

 

47,157

 

(2.3)

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$       34,923

 

$       34,571

 

1.0

 

3.2

Used vehicle retail

 

$       20,938

 

$       20,987

 

(0.2)

 

1.8

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$         1,808

 

$         1,759

 

2.8

 

5.1

Used vehicle retail sales

 

1,426

 

1,500

 

(4.9)

 

(3.9)

Used vehicle wholesale sales

 

7

 

101

 

(93.1)

 

(94.6)

Total used

 

979

 

1,074

 

(8.8)

 

(7.9)

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

 

$         1,386

 

$         1,361

 

1.8

 

2.9

                 

OTHER: 

               

SG&A expenses

 

$    289,779

 

$    293,664

 

(1.3)

 

0.1

Adjusted SG&A expenses(1)

 

$    291,612

 

$    290,980

 

0.2

 

1.6

SG&A as % revenues

 

11.5

 

11.3

       

Adjusted SG&A as % revenues (1)

 

11.6

 

11.2

       

SG&A as % gross profit

 

75.6

 

75.5

       

Adjusted SG&A as % gross profit (1)

 

76.0

 

74.8

       

Operating margin %

 

3.2

 

3.1

       

Adjusted operating margin % (1)

 

3.1

 

3.3

       

Pretax margin %

 

2.0

 

2.1

       

Adjusted pretax margin % (1)

 

2.0

 

2.2

       
                 

INTEREST EXPENSE:

               

Floorplan interest expense

 

$     (11,942)

 

$     (11,010)

 

8.5

 

9.9

Floorplan assistance

 

10,513

 

11,514

 

(8.7)

 

(8.7)

Net floorplan (expense) income

 

$       (1,429)

 

$            504

 

(383.5)

 

(413.7)

Other interest expense, net

 

$     (16,999)

 

$     (16,929)

 

0.4

 

0.7

 

(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 March 31,

   

2017

 

2016

 

% Increase/
(Decrease)

REVENUES:

           

New vehicle retail sales

 

$ 1,018,248

 

$ 1,081,354

 

(5.8)

Used vehicle retail sales

 

521,945

 

549,854

 

(5.1)

Used vehicle wholesale sales

 

70,545

 

66,761

 

5.7

Total used

 

592,490

 

616,615

 

(3.9)

Parts and service

 

271,160

 

260,134

 

4.2

Finance, insurance and other, net

 

85,390

 

88,632

 

(3.7)

Total 

 

$ 1,967,288

 

$ 2,046,735

 

(3.9)

             

GROSS MARGIN %:

           

New vehicle retail sales

 

5.0

 

4.9

   

Used vehicle retail sales

 

7.3

 

7.7

   

Used vehicle wholesale sales

 

(0.5)

 

1.9

   

Total used

 

6.3

 

7.1

   

Parts and service

 

53.8

 

54.6

   

Finance, insurance and other, net

 

100.0

 

100.0

   

Total

 

16.3

 

16.0

   
             

GROSS PROFIT:

           

New vehicle retail sales

 

$       51,206

 

$       53,237

 

(3.8)

Used vehicle retail sales

 

37,934

 

42,352

 

(10.4)

Used vehicle wholesale sales

 

(343)

 

1,242

 

(127.6)

Total used

 

37,591

 

43,594

 

(13.8)

Parts and service

 

146,000

 

142,062

 

2.8

Finance, insurance and other, net

 

85,390

 

88,632

 

(3.7)

Total 

 

$    320,187

 

$    327,525

 

(2.2)

             

UNITS SOLD:

           

Retail new vehicles sold

 

27,498

 

30,062

 

(8.5)

Retail used vehicles sold

 

24,929

 

26,357

 

(5.4)

Wholesale used vehicles sold

 

9,981

 

10,113

 

(1.3)

Total used

 

34,910

 

36,470

 

(4.3)

             

AVERAGE RETAIL SALES PRICE:

           

New vehicle retail

 

$       37,030

 

$       35,971

 

2.9

Used vehicle retail

 

$       20,937

 

$       20,862

 

0.4

             

GROSS PROFIT PER UNIT SOLD:

           

New vehicle retail sales

 

$         1,862

 

$         1,771

 

5.1

Used vehicle retail sales

 

1,522

 

1,607

 

(5.3)

Used vehicle wholesale sales

 

(34)

 

123

 

(127.6)

Total used

 

1,077

 

1,195

 

(9.9)

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

 

$         1,629

 

$         1,571

 

3.7

             

OTHER: 

           

SG&A expenses

 

$    235,953

 

$    241,027

 

(2.1)

Adjusted SG&A expenses(2)

 

$    237,786

 

$    238,208

 

(0.2)

SG&A as % revenues

 

12.0

 

11.8

   

Adjusted SG&A as % revenues (2)

 

12.1

 

11.6

   

SG&A as % gross profit

 

73.7

 

73.6

   

Adjusted SG&A as % gross profit (2)

 

74.3

 

72.7

   

Operating margin %

 

3.7

 

3.7

   

Adjusted operating margin % (2)

 

3.6

 

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 March 31,

   

2017

 

2016

 

% Increase/
(Decrease)

 

Constant Currency (2)
% Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$ 222,305

 

$ 232,238

 

(4.3)

 

10.7

Used vehicle retail sales

 

94,051

 

100,674

 

(6.6)

 

8.1

Used vehicle wholesale sales

 

24,396

 

28,800

 

(15.3)

 

(2.0)

Total used

 

118,447

 

129,474

 

(8.5)

 

5.8

Parts and service

 

28,219

 

30,107

 

(6.3)

 

8.4

Finance, insurance and other, net

 

7,618

 

8,191

 

(7.0)

 

7.5

Total 

 

$ 376,589

 

$ 400,010

 

(5.9)

 

8.9

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.7

 

5.8

       

Used vehicle retail sales

 

5.0

 

5.2

       

Used vehicle wholesale sales

 

2.0

 

2.1

       

Total used

 

4.4

 

4.5

       

Parts and service

 

56.9

 

53.0

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

11.1

 

10.8

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$   12,698

 

$   13,444

 

(5.5)

 

9.2

Used vehicle retail sales

 

4,743

 

5,198

 

(8.8)

 

5.5

Used vehicle wholesale sales

 

499

 

597

 

(16.4)

 

(4.3)

Total used

 

5,242

 

5,795

 

(9.5)

 

4.5

Parts and service

 

16,059

 

15,958

 

0.6

 

16.4

Finance, insurance and other, net

 

7,618

 

8,191

 

(7.0)

 

7.5

Total 

 

$   41,617

 

$   43,388

 

(4.1)

 

10.9

                 

UNITS SOLD:

               

Retail new vehicles sold

 

7,650

 

6,884

 

11.1

   

Retail used vehicles sold

 

4,592

 

4,215

 

8.9

   

Wholesale used vehicles sold

 

3,361

 

3,361

 

-

   

Total used

 

7,953

 

7,576

 

5.0

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$   29,059

 

$   33,736

 

(13.9)

 

(0.4)

Used vehicle retail

 

$   20,481

 

$   23,885

 

(14.2)

 

(0.8)

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$      1,660

 

$      1,953

 

(15.0)

 

(1.8)

Used vehicle retail sales

 

1,033

 

1,233

 

(16.2)

 

(3.1)

Used vehicle wholesale sales

 

148

 

178

 

(16.9)

 

(4.3)

Total used

 

659

 

765

 

(13.9)

 

(0.4)

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

 

$         622

 

$         738

 

(15.7)

 

(2.5)

                 

OTHER: 

               

SG&A expenses

 

$   31,186

 

$   32,015

 

(2.6)

 

12.6

Adjusted SG&A expenses(2)

 

$   31,186

 

$   31,454

 

(0.9)

 

14.6

SG&A as % revenues

 

8.3

 

8.0

       

Adjusted SG&A as % revenues (2)

 

8.3

 

7.9

       

SG&A as % gross profit

 

74.9

 

73.8

       

Adjusted SG&A as % gross profit (2)

 

74.9

 

72.5

       

Operating margin %

 

2.4

 

2.5

       

Adjusted operating margin % (2)

 

2.4

 

2.6

       
 

(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 March 31,

   

2017

 

2016

 

% Increase/
(Decrease)

 

Constant Currency (2) 
% Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$ 53,912

 

$ 57,210

 

(5.8)

 

(23.9)

Used vehicle retail sales

 

20,406

 

16,400

 

24.4

 

0.3

Used vehicle wholesale sales

 

3,010

 

442

 

581.0

 

450.3

Total used

 

23,416

 

16,842

 

39.0

 

12.1

Parts and service

 

10,244

 

8,133

 

26.0

 

1.8

Finance, insurance and other, net

 

1,690

 

1,071

 

57.8

 

26.7

Total 

 

$ 89,262

 

$ 83,256

 

7.2

 

(13.4)

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

6.1

 

5.9

       

Used vehicle retail sales

 

7.4

 

2.9

       

Used vehicle wholesale sales

 

7.9

 

7.7

       

Total used

 

7.5

 

3.0

       

Parts and service

 

45.8

 

39.6

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

12.8

 

9.8

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$   3,289

 

$   3,350

 

(1.8)

 

(20.9)

Used vehicle retail sales

 

1,515

 

470

 

222.3

 

158.2

Used vehicle wholesale sales

 

238

 

34

 

600.0

 

457.1

Total used

 

1,753

 

504

 

247.8

 

178.7

Parts and service

 

4,689

 

3,220

 

45.6

 

17.6

Finance, insurance and other, net

 

1,690

 

1,071

 

57.8

 

26.7

Total 

 

$ 11,421

 

$   8,145

 

40.2

 

13.0

                 

UNITS SOLD:

               

Retail new vehicles sold

 

1,579

 

2,207

 

(28.5)

   

Retail used vehicles sold

 

928

 

1,048

 

(11.5)

   

Wholesale used vehicles sold

 

247

 

204

 

21.1

   

Total used

 

1,175

 

1,252

 

(6.2)

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$ 34,143

 

$ 25,922

 

31.7

 

6.4

Used vehicle retail

 

$ 21,989

 

$ 15,649

 

40.5

 

13.2

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$   2,083

 

$   1,518

 

37.2

 

10.6

Used vehicle retail sales

 

1,633

 

448

 

264.5

 

191.5

Used vehicle wholesale sales

 

964

 

167

 

477.2

 

360.1

Total used

 

1,492

 

403

 

270.2

 

196.9

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

 

$       674

 

$       329

 

104.9

 

64.5

                 

OTHER: 

               

SG&A expenses

 

$ 10,252

 

$   7,878

 

30.1

 

4.9

SG&A as % revenues

 

11.5

 

9.5

       

SG&A as % gross profit

 

89.8

 

96.7

       

Operating margin %

 

0.9

 

0.0

       
 

(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 Consolidated (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)

                 
   

Three Months Ended March 31,

   

2017

 

2016

 

% Increase/
(Decrease)

 

Constant Currency (2))
% Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$ 1,294,465

 

$ 1,370,802

 

(5.6)

 

(3.8)

Used vehicle retail sales

 

636,402

 

666,928

 

(4.6)

 

(3.0)

Used vehicle wholesale sales

 

97,951

 

96,003

 

2.0

 

5.4

Total used

 

734,353

 

762,931

 

(3.7)

 

(1.9)

Parts and service

 

309,623

 

298,374

 

3.8

 

4.6

Finance, insurance and other, net

 

94,698

 

97,894

 

(3.3)

 

(2.4)

Total 

 

$ 2,433,139

 

$ 2,530,001

 

(3.8)

 

(2.2)

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.2

 

5.1

       

Used vehicle retail sales

 

6.9

 

7.2

       

Used vehicle wholesale sales

 

0.4

 

2.0

       

Total used

 

6.1

 

6.5

       

Parts and service

 

53.9

 

54.0

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

15.3

 

15.0

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$       67,193

 

$       70,031

 

(4.1)

 

(2.1)

Used vehicle retail sales

 

44,192

 

48,020

 

(8.0)

 

(7.1)

Used vehicle wholesale sales

 

394

 

1,873

 

(79.0)

 

(77.5)

Total used

 

44,586

 

49,893

 

(10.6)

 

(9.7)

Parts and service

 

166,748

 

161,240

 

3.4

 

4.4

Finance, insurance and other, net

 

94,698

 

97,894

 

(3.3)

 

(2.4)

Total 

 

$    373,225

 

$    379,058

 

(1.5)

 

(0.4)

                 

UNITS SOLD:

               

Retail new vehicles sold

 

36,727

 

39,153

 

(6.2)

   

Retail used vehicles sold

 

30,449

 

31,620

 

(3.7)

   

Wholesale used vehicles sold

 

13,589

 

13,678

 

(0.7)

   

Total used

 

44,038

 

45,298

 

(2.8)

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$       35,246

 

$       35,011

 

0.7

 

2.6

Used vehicle retail

 

$       20,901

 

$       21,092

 

(0.9)

 

0.8

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$         1,830

 

$         1,789

 

2.3

 

4.3

Used vehicle retail sales

 

1,451

 

1,519

 

(4.5)

 

(3.5)

Used vehicle wholesale sales

 

29

 

137

 

(78.8)

 

(77.4)

Total used

 

1,012

 

1,101

 

(8.1)

 

(7.1)

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

 

$         1,410

 

$         1,383

 

2.0

 

2.8

                 

OTHER: 

               

SG&A expenses

 

$    277,391

 

$    280,920

 

(1.3)

 

(0.2)

Adjusted SG&A expenses(2)

 

$    279,224

 

$    277,540

 

0.6

 

1.6

SG&A as % revenues

 

11.4

 

11.1

       

Adjusted SG&A as % revenues (2)

 

11.5

 

11.0

       

SG&A as % gross profit

 

74.3

 

74.1

       

Adjusted SG&A as % gross profit (2)

 

74.8

 

73.2

       

Operating margin %

 

3.4

 

3.4

       

Adjusted operating margin % (2)

 

3.3

 

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 March 31,

   

2017

 

2016

 

% Increase/
(Decrease)

SG&A RECONCILIATION:

         
 

As reported

$ 236,273

 

$ 245,838

 

(3.9)

 

  Pre-tax adjustments:

         
 

    Catastrophic events 

-

 

(2,655)

   
 

    Gain on real estate and dealership transactions 

-

 

933

   
 

    Acquisition costs 

-

 

(30)

   
 

    Legal settlements (4)

1,833

 

-

   
 

Adjusted SG&A (1)

$ 238,106

 

$ 244,086

 

(2.4)

             

SG&A AS % REVENUES:

         
 

Unadjusted

12.0

 

11.8

   
 

Adjusted (1)

12.1

 

11.7

   

SG&A AS % GROSS PROFIT:

         
 

Unadjusted

73.7

 

73.9

   
 

Adjusted (1)

74.3

 

73.4

   

OPERATING MARGIN %

         
 

Unadjusted

3.7

 

3.6

   
 

Adjusted (1), (2)

3.6

 

3.7

   

PRETAX MARGIN %:

         
 

Unadjusted

2.3

 

2.4

   
 

Adjusted (1), (2)

2.2

 

2.5

   
             

SAME STORE SG&A RECONCILIATION:

         
             
 

As reported

$ 235,953

 

$ 241,027

 

(2.1)

 

  Pre-tax adjustments:

         
 

    Catastrophic events 

-

 

(2,655)

   
 

    Gain on real estate and dealership transactions 

-

 

(134)

   
 

    Acquisition costs 

-

 

(30)

   
 

    Legal settlements (4)

1,833

 

-

   
 

Adjusted Same Store SG&A (1)

$ 237,786

 

$ 238,208

 

(0.2)

             

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

12.0

 

11.8

   
 

Adjusted (1)

12.1

 

11.6

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

73.7

 

73.6

   
 

Adjusted (1)

74.3

 

72.7

   

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

3.7

 

3.7

   
 

Adjusted (1), (3)

3.6

 

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 $510 for three months March 31, 2016.

(3) Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $510 for three months March 31, 2016.

(4) For the three months ended March 31, 2017, the Company recognized a net pre-tax gain related to a settlement with an OEM of $1.8 million.

 

Group 1 Automotive, Inc.

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

(Unaudited)

 (Dollars in thousands, except per share amounts)

             
   

Three Months Ended March 31,

   

2017

 

2016

 

% Increase/
(Decrease)

SG&A RECONCILIATION:

         
 

As reported

$ 41,624

 

$ 37,436

 

11.2

 

  Pre-tax adjustments:

         
 

    Acquisition costs 

-

 

(561)

   
 

Adjusted SG&A (1)

$ 41,624

 

$ 36,875

 

12.9

             

SG&A AS % REVENUES:

         
 

Unadjusted

9.2

 

8.7

   
 

Adjusted (1)

9.2

 

8.5

   

SG&A AS % GROSS PROFIT:

         
 

Unadjusted

82.8

 

80.1

   
 

Adjusted (1)

82.8

 

78.9

   

OPERATING MARGIN %

         
 

Unadjusted

1.6

 

1.8

   
 

Adjusted (1), (2)

1.6

 

1.9

   

PRETAX MARGIN %:

         
 

Unadjusted

1.2

 

1.3

   
 

Adjusted (1), (2)

1.2

 

1.4

   
             

SAME STORE SG&A RECONCILIATION:

         
             
 

As reported

$ 31,186

 

$ 32,015

 

(2.6)

 

  Pre-tax adjustments:

         
 

    Acquisition costs 

-

 

(561)

   
 

Adjusted Same Store SG&A (1)

$ 31,186

 

$ 31,454

 

(0.9)

             

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

8.3

 

8.0

   
 

Adjusted (1)

8.3

 

7.9

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

74.9

 

73.8

   
 

Adjusted (1)

74.9

 

72.5

   

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

2.4

 

2.5

   
 

Adjusted (1), (3)

2.4

 

2.6

   
 

(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.

(3) Excludes the impact of Same Store SG&A reconciling items above.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Brazil

(Unaudited)

 (Dollars in thousands, except per share amounts)

             
   

Three Months Ended March 31,

   

2017

 

2016

 

% Increase/ (Decrease)

SG&A RECONCILIATION:

         
 

As reported

$               11,882

 

$               10,390

 

14.4

 

  Pre-tax adjustments:

         
 

 Loss on real estate and dealership transactions 

-

 

(371)

   
 

Adjusted SG&A (1)

$               11,882

 

$               10,019

 

18.6

             

SG&A AS % REVENUES:

         
 

Unadjusted

11.8

 

11.0

   
 

Adjusted (1)

11.8

 

10.6

   

SG&A AS % GROSS PROFIT:

         
 

Unadjusted

94.1

 

107.7

   
 

Adjusted (1)

94.1

 

103.9

   

OPERATING MARGIN %

         
 

Unadjusted

0.4

 

(1.5)

   
 

Adjusted (1), (2)

0.4

 

(0.7)

   

PRETAX MARGIN %:

         
 

Unadjusted

0.2

 

(1.7)

   
 

Adjusted (1), (2)

0.2

 

(0.9)

   
             

(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 $423 for the three months ended March 31, 2016.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - CONSOLIDATED

(Unaudited)

 (Dollars in thousands, except per share amounts)

             
   

Three Months Ended March 31,

   

2017

 

2016

 

% Increase/ (Decrease)

             

NET INCOME RECONCILIATION:

         
 

As reported

$   33,939

 

$   34,291

 

(1.0)

 

  Pre-tax adjustments:

         
 

 Catastrophic events 

         
 

 Pre-tax 

-

 

2,655

   
 

 Tax impact 

-

 

(996)

   
 

 Gain on real estate and dealership transactions 

         
 

 Pre-tax 

-

 

(137)

   
 

 Tax impact 

-

 

349

   
 

 Acquisition costs including related tax impact 

         
 

 Pre-tax 

-

 

589

   
 

 Tax impact 

-

 

(11)

   
 

  Legal settlements (4)

         
 

 Pre-tax 

(1,833)

 

-

   
 

 Tax impact 

696

 

-

   
 

 Non-cash asset impairment 

         
 

 Pre-tax 

-

 

510

   
 

 Tax impact 

-

 

(195)

   
 

Adjusted net income (1)

$   32,802

 

$   37,055

 

(11.5)

             

ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED

         
 

COMMON SHARES RECONCILIATION:

         
 

Adjusted net income (1)

$   32,802

 

$   37,055

 

(11.5)

 

Less: Adjusted earnings allocated to participating securities

1,206

 

1,457

 

(17.2)

 

Adjusted net income available to diluted common shares (1)

$   31,596

 

$   35,598

 

(11.2)

             

 DILUTED (LOSS) INCOME PER COMMON SHARE RECONCILIATION: 

       
 

As reported

$       1.58

 

$       1.47

 

7.5

 

  Pre-tax adjustments:

         
 

 Catastrophic events  

-

 

0.07

   
 

 Gain on real estate and dealership transactions 

-

 

0.01

   
 

 Acquisition costs including related tax impact  

-

 

0.03

   
 

  Legal settlements (4)

(0.05)

 

-

   
 

 Non-cash asset impairment 

-

 

0.01

   
 

Adjusted diluted income per share (1)

$       1.53

 

$       1.59

 

(3.8)

             

SG&A RECONCILIATION:

         
 

As reported

$ 289,779

 

$ 293,664

 

(1.3)

 

  Pre-tax adjustments:

         
 

 Catastrophic events  

-

 

(2,655)

   
 

 Gain on real estate and dealership transactions 

-

 

562

   
 

 Acquisition costs 

-

 

(591)

   
 

  Legal settlements (4)

1,833

 

-

   
 

Adjusted SG&A (1)

$ 291,612

 

$ 290,980

 

0.2

             

SG&A AS % REVENUES:

         
 

Unadjusted

11.5

 

11.3

   
 

Adjusted (1)

11.6

 

11.2

   

SG&A AS % GROSS PROFIT:

         
 

Unadjusted

75.6

 

75.5

   
 

Adjusted (1)

76.0

 

74.8

   

OPERATING MARGIN %

         
 

Unadjusted

3.2

 

3.1

   
 

Adjusted (1), (2)

3.1

 

3.3

   

PRETAX MARGIN %:

         
 

Unadjusted

2.0

 

2.1

   
 

Adjusted (1), (2)

2.0

 

2.2

   
             

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$ 277,391

 

$ 280,920

 

(1.3)

 

  Pre-tax adjustments:

         
 

 Catastrophic events  

-

 

(2,655)

   
 

 Loss on real estate and dealership transactions 

-

 

(134)

   
 

 Acquisition costs 

-

 

(591)

   
 

  Legal settlements (4)

1,833

 

-

   
 

Adjusted Same Store SG&A (1)

$ 279,224

 

$ 277,540

 

0.6

             

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

11.4

 

11.1

   
 

Adjusted (1)

11.5

 

11.0

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

74.3

 

74.1

   
 

Adjusted (1)

74.8

 

73.2

   

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

3.4

 

3.4

   
 

Adjusted (1), (3)

3.3

 

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 $932 for the three months ended March 31, 2016.

(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $510 for the three  months ended March 31, 2016.

(4)

For the three months ended March 31, 2017, the Company recognized a net pre-tax gain related to a settlement with an OEM of $1.8 million.

 

 

SOURCE Group 1 Automotive, Inc.


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