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Group 1 Automotive

800 Gessner
Houston, TX 77024

  • Sales: (713) 647-5700
Investor Relations

Group 1 Automotive Reports Second Quarter 2017 Financial Results

Acquires Land Rover and Jaguar dealerships in New Mexico

Repurchases 3% of Outstanding Share Float

HOUSTON, July 27, 2017 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI),("Group 1" or the "Company"), an international, Fortune 500 automotive retailer, today reported 2017 second quarter net income of $39.1 million, diluted earnings per common share of $1.84, adjusted net income (a non-GAAP measure) of $39.8 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $1.87.

Second quarter 2017 adjusted net income and diluted earnings per share exclude approximately $681 thousand of net after-tax adjustments, or $0.03 per share, related to catastrophic events and acquisition costs. Reconciliations of non-GAAP financial measures are included in the attached financial tables.

"While we had a strong quarter in Brazil, solid growth in aftersales revenue, and a new record in U.S. F&I performance, these factors were not enough to offset ongoing weakness in vehicle sales in our energy-price-impacted markets. Combined new and used sales dropped seven percent in the quarter for our Texas and Oklahoma stores," said Earl J. Hesterberg, Group 1's president and chief executive officer. "Our single largest market of Houston was extremely volatile in the second quarter with Houston total industry auto sales dropping 24 percent in June after an increase in May. Group 1's Houston sales only decreased 12 percent in June, but this is indicative of the headwinds we continue to face in much of Texas and Oklahoma. As for our overseas businesses, the U.K. market did experience some deceleration as a result of the increased road tax enacted in April, with the overall market declining about 10 percent in the second quarter. However, we were able to significantly outperform the market with our new vehicle unit sales only contracting 1.4 percent and overall same store revenue on a constant currency basis growing 2.5 percent. In addition, Brazil delivered another quarter of profitability, with gross profit up 18 percent on a constant currency basis, reflecting double-digit growth in used, aftersales, and F&I. The team has us well positioned for further improvements as the Brazilian economy begins to rebound."

Consolidated Results for Second 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 4.0 percent (decreased 2.4 percent) to $2.7 billion; total gross profit decreased 1.3 percent (decreased 0.1 percent) to $404.9 million.
  • New vehicle revenues decreased 6.0 percent (decreased 4.6 percent) on a 6.3 percent decrease in unit sales. New vehicle gross profit decreased 7.7 percent (decreased 6.1 percent) to $74.9 million. U.S. Same Store new vehicle margins were down 1.0 percent, or $18 per unit, to $1,858.
  • Retail used vehicle revenues decreased 4.2 percent (decreased 2.2 percent) on a 2.9 percent decrease in unit sales. Retail used vehicle gross profit decreased 6.9 percent (decreased 5.5 percent) to $44.9 million reflecting the impact of lower margins, down $62 per unit, in combination with the volume decline.
  • Parts and service gross profit increased 3.3 percent (increased 4.5 percent) on revenue growth of 3.0 percent (increased 4.1 percent). Same Store parts and service gross profit increased 4.2 percent (increased 5.4 percent) on revenue growth of 4.2 percent (increased 5.3 percent). U.S. Same Store parts & service revenue increased 5.6 percent.
  • Finance and Insurance (F&I) gross profit per retail unit (PRU) increased 4.1 percent (increased 5.0 percent) to $1,461 per retail unit. U.S. F&I gross profit per unit increased 5.4 percent, or $86, to a record $1,688.
  • Selling, General and Administrative (SG&A) expenses as a percent of gross profit increased 80 basis points to 73.7 percent. Adjusted SG&A expenses as a percent of gross profit (a non-GAAP measure) increased 130 basis points to 73.5 percent.

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

  • United States:
    The Company's U.S. operations accounted for 79.5 percent of total revenues and 84.1 percent of total gross profit. On a Same Store basis, U.S. revenues were $2.1 billion, a decrease of 2.7 percent, and total Same Store gross profit was essentially flat. The revenue decrease reflects 5.7 percent and 4.9 percent declines in Same Store retail new and used unit sales, respectively. The vast majority of the sales decline came from the Company's oil-impacted markets of Texas and Oklahoma.
  • United Kingdom:
    The Company's U.K. operations accounted for 16.4 percent of total revenues and 12.6 percent of total gross profit. Although the overall U.K. new vehicle industry sales decreased 10 percent in the quarter, the Company's Same Store new vehicle unit sales outperformed the market with only a slight decrease of 1.4 percent. Total Same Store revenue grew 2.5 percent and total Same Store gross profit grew 2.6 percent, both on a constant currency basis. The gross profit growth was driven by a 4.2 percent increase in aftersales gross profit on a constant currency basis, and a 7.5 percent increase in F&I per retail unit on a constant currency basis.
  • Brazil:
    The Company's Brazilian operations were profitable again this quarter and accounted for 4.1 percent of total revenues and 3.3 percent of total gross profit. Total Same Store revenue grew 10.8 percent (increased 1.7 percent) and total Same Store gross profit increased 28.5 percent (increased 18.0 percent), reflecting strong growth in Same Store total used vehicles gross profit of 46.9 percent (increased 35.2 percent) and a 42.4 percent increase (increased 30.6 percent) in Same Store aftersales gross profit. In addition, Same Store F&I gross profit PRU increased 43.5 percent (increased 32.0 percent). SG&A as a percentage of gross profit improved 440 basis points to 88.3 percent.

Corporate Development

The Company is pleased to announce it has acquired its first Jaguar and Land Rover dealerships in the U.S., which are located in Albuquerque and Santa Fe, New Mexico, and have projected annualized revenues of $40 million. The addition of these two stores expands the Company's global network to seven Land Rover and seven Jaguar franchises. The dealerships, which operate as Jaguar Land Rover Albuquerque and Land Rover Santa Fe, are the only Jaguar and Land Rover dealerships in the state of New Mexico, and expand the Company's presence to 15 states in the U.S.

As previously announced in April, the Company opened Cedar Park Nissan in Austin, Texas, which has an expected annualized revenue of $30 million. This new point of representation for Nissan was awarded to Group 1 by Nissan Motor Corporation U.S.A. Additionally, as previously announced in July 2017, the Company acquired Beadles Group Ltd in the U.K., which expands the dealership footprint in the region to 43 stores. With expected annual revenues of $330 million, the Beadles acquisition increases the Company's projected U.K. annual revenue base to over $2 billion.

Year-to-date 2017, the Company has acquired 16 dealerships, which are expected to generate an estimated $435 million in annualized revenues, and the Company has disposed of two dealerships in Brazil, which generated approximately $25 million in trailing-twelve-month revenues.

Share Repurchase Authorization

During the second quarter, the Company repurchased 629,298 shares, or approximately three percent of its previously outstanding common shares, at an average price per common share of $62.01 for a total of $39.0 million. As of June 30, 2017, $50.7 million remains available under the Company's current common stock share repurchase authorization, which was reset in May 2017.

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.

Second Quarter 2017 Earnings Conference Call Details

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

1935170

A telephonic replay will be available following the call through August 3, 2017 by dialing:

Domestic:

1-877-344-7529

International:

1-412-317-0088

Replay ID:

10110617

About Group 1 Automotive, Inc.
Group 1 owns and operates 173 automotive dealerships, 227 franchises, and 47 collision centers in the United States, the United Kingdom and Brazil that offer 32 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 June 30, 


2017


2016


% Increase/
(Decrease)

REVENUES:






New vehicle retail sales

$ 1,448,768


$ 1,540,759


(6.0)

Used vehicle retail sales

685,949


715,778


(4.2)

Used vehicle wholesale sales

99,377


96,279


3.2

Parts and service

331,631


322,073


3.0

Finance, insurance and other, net

106,470


107,560


(1.0)

Total revenues

2,672,195


2,782,449


(4.0)







COST OF SALES:






New vehicle retail sales

1,373,857


1,459,611


(5.9)

Used vehicle retail sales

641,036


667,513


(4.0)

Used vehicle wholesale sales

99,644


96,331


3.4

Parts and service

152,766


148,875


2.6

Total cost of sales

2,267,303


2,372,330


(4.4)







GROSS PROFIT

404,892


410,119


(1.3)







SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

298,568


299,022


(0.2)







DEPRECIATION AND AMORTIZATION EXPENSE

14,093


12,713


10.9







ASSET IMPAIRMENTS

-


1,024


(100.0)







OPERATING INCOME

92,231


97,360


(5.3)







OTHER EXPENSE:






Floorplan interest expense

(13,226)


(11,593)


14.1

Other interest expense, net

(17,315)


(16,705)


3.7

INCOME BEFORE INCOME TAXES

61,690


69,062


(10.7)







PROVISION FOR INCOME TAXES

(22,557)


(22,482)


0.3







NET INCOME 

$      39,133


$      46,580


(16.0)

Less: Earnings allocated to participating securities

$        1,389


$        1,884


(26.3)

Earnings available to diluted common shares

$      37,744


$      44,696


(15.6)

DILUTED EARNINGS PER SHARE

$          1.84


$          2.12


(13.2)

Weighted average dilutive common shares outstanding

20,522


21,070


(2.6)

Weighted average participating securities

761


892


(14.7)

Total weighted average shares outstanding

21,283


21,962


(3.1)








 Six Months Ended June 30, 


2017


2016


% Increase/
(Decrease)

REVENUES:






New vehicle retail sales

$ 2,785,981


$ 2,950,609


(5.6)

Used vehicle retail sales

1,346,876


1,403,949


(4.1)

Used vehicle wholesale sales

203,534


197,871


2.9

Parts and service

651,329


630,665


3.3

Finance, insurance and other, net

203,304


207,710


(2.1)

Total revenues

5,191,024


5,390,804


(3.7)







COST OF SALES:






New vehicle retail sales

2,641,843


2,797,734


(5.6)

Used vehicle retail sales

1,256,958


1,306,484


(3.8)

Used vehicle wholesale sales

203,701


196,474


3.7

Parts and service

300,108


290,891


3.2

Total cost of sales

4,402,610


4,591,583


(4.1)







GROSS PROFIT

788,414


799,221


(1.4)







SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

588,347


592,687


(0.7)







DEPRECIATION AND AMORTIZATION EXPENSE

27,699


25,177


10.0







ASSET IMPAIRMENTS

-


1,956


(100.0)







OPERATING INCOME

172,368


179,401


(3.9)







OTHER EXPENSE:






Floorplan interest expense

(25,168)


(22,603)


11.3

Other interest expense, net

(34,314)


(33,634)


2.0

INCOME BEFORE INCOME TAXES

112,886


123,164


(8.3)







PROVISION FOR INCOME TAXES

(39,814)


(42,293)


(5.9)







NET INCOME

$      73,072


$      80,871


(9.6)

Less: Earnings allocated to participating securities

$        2,645


$        3,223


(17.9)

Earnings available to diluted common shares

$      70,427


$      77,648


(9.3)

DILUTED EARNINGS PER SHARE

$          3.42


$          3.57


(4.2)

Weighted average dilutive common shares outstanding

20,609


21,762


(5.3)

Weighted average participating securities

789


907


(13.0)

Total weighted average shares outstanding

21,398


22,669


(5.6)

 

Group 1 Automotive, Inc.

Consolidated Balance Sheets

(Dollars in thousands)










June 30, 2017


December 31,
2016


% Increase/

 (Decrease)

 ASSETS: 


(Unaudited)





 CURRENT ASSETS: 







 Cash and cash equivalents 


$      26,573


$          20,992


26.6

 Contracts in transit and vehicle receivables, net 


217,378


269,508


(19.3)

 Accounts and notes receivable, net 


158,542


173,364


(8.5)

 Inventories, net 


1,803,909


1,651,815


9.2

 Prepaid expenses and other current assets 


87,470


34,908


150.6

 Total current assets 


2,293,872


2,150,587


6.7

 PROPERTY AND EQUIPMENT, net 


1,167,345


1,125,883


3.7

 GOODWILL AND INTANGIBLE FRANCHISE RIGHTS 


1,164,465


1,161,639


0.2

 OTHER ASSETS 


18,903


23,794


(20.6)

 Total assets 


$ 4,644,585


$     4,461,903


4.1








 LIABILITIES AND STOCKHOLDERS' EQUITY: 







 CURRENT LIABILITIES: 







 Floorplan notes payable - credit facility and other 


$ 1,214,084


$     1,136,654


6.8

 Offset account related to floorplan notes payable - credit facility 


(55,579)


(59,626)


(6.8)

 Floorplan notes payable - manufacturer affiliates 


430,619


392,661


9.7

 Offset account related to floorplan notes payable - manufacturer affiliates 


(21,000)


(25,500)


(17.6)

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


53,184


72,419


(26.6)

 Current liabilities from interest rate risk management activities 


1,626


3,941


(58.7)

 Accounts payable 


330,747


356,099


(7.1)

 Accrued expenses 


173,173


176,469


(1.9)

 Total current liabilities 


2,126,854


2,053,117


3.6

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


541,256


540,465


0.1

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


295,869


295,591


0.1

 ACQUISITION LINE 


32,509



100.0

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


352,872


333,326


5.9

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


41,339


43,427


(4.8)

 DEFERRED INCOME TAXES 


174,220


161,502


7.9

 LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES 


18,065


20,470


(11.7)

 OTHER LIABILITIES 


89,953


83,805


7.3

 STOCKHOLDERS' EQUITY: 







 Common stock 


256


257


(0.4)

 Additional paid-in capital 


287,410


290,899


(1.2)

 Retained earnings 


1,116,195


1,053,301


6.0

 Accumulated other comprehensive loss 


(136,268)


(146,944)


(7.3)

 Treasury stock 


(295,945)


(267,313)


10.7

 Total stockholders' equity 


$    971,648


$        930,200


4.5

 Total liabilities and stockholders' equity 


$ 4,644,585


$     4,461,903


4.1

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)














Three Months Ended


Six Months Ended




June 30,


June 30,




2017 (%)


2016 (%)


2017 (%)


2016 (%)

NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:








Region

Geographic Market









United States

Texas


36.6


36.5


35.6


36.6


California


7.9


9.3


7.9


9.2


Oklahoma


6.5


6.8


6.5


7.0


Massachusetts


4.9


5.0


4.7


4.9


Georgia


4.8


4.1


4.7


4.0


Florida


2.5


2.6


2.5


2.5


New Hampshire


2.3


1.9


2.0


1.8


New Jersey


1.9


1.6


1.7


1.6


Louisiana


1.9


2.0


2.0


2.0


Kansas


1.8


1.9


1.7


1.9


South Carolina


1.5


1.4


1.4


1.4


Mississippi


1.3


1.6


1.4


1.5


Alabama


1.1


0.9


1.1


0.9


Maryland


0.4


0.5


0.4


0.5




75.4


76.1


73.6


75.8











International

United Kingdom


19.3


18.0


21.4


18.0


Brazil


5.3


5.9


5.0


6.2




100.0


100.0


100.0


100.0











NEW VEHICLE UNIT SALES BRAND MIX:









Toyota/Scion/Lexus


25.4


24.8


24.4


24.3

BMW/MINI


13.1


13.5


13.7


13.3

Volkswagen/Audi/Porsche


12.3


10.9


12.4


10.8

Ford/Lincoln


11.3


10.9


12.1


11.2

Honda/Acura


9.6


10.4


9.3


10.4

Nissan


7.6


6.2


7.9


7.0

Chevrolet/GMC/Buick/Cadillac


5.9


7.6


6.3


7.7

Hyundai/Kia


4.3


4.3


3.9


4.5

Mercedes-Benz/smart/Sprinter


4.2


4.3


4.1


4.0

Chrysler/Dodge/Jeep/RAM


4.1


4.1


3.9


4.1

Other


2.2


3.0


2.0


2.7




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 June 30,



2017


2016


% Increase/
(Decrease)

REVENUES:







New vehicle retail sales


$ 1,143,771


$ 1,203,311


(4.9)

Used vehicle retail sales


536,193


575,280


(6.8)

Used vehicle wholesale sales


66,476


62,062


7.1

Total used


602,669


637,342


(5.4)

Parts and service


282,698


270,525


4.5

Finance, insurance and other, net


94,552


96,204


(1.7)

Total


$ 2,123,690


$ 2,207,382


(3.8)








GROSS MARGIN %:







New vehicle retail sales


5.0


5.1



Used vehicle retail sales


6.8


7.0



Used vehicle wholesale sales


0.4




Total used


6.1


6.3



Parts and service


53.8


54.2



Finance, insurance and other, net


100.0


100.0



Total


16.0


15.6










GROSS PROFIT:







New vehicle retail sales


$      57,000


$      61,640


(7.5)

Used vehicle retail sales


36,704


40,184


(8.7)

Used vehicle wholesale sales


246


27


811.1

Total used


36,950


40,211


(8.1)

Parts and service


151,971


146,541


3.7

Finance, insurance and other, net


94,552


96,204


(1.7)

Total 


$    340,473


$    344,596


(1.2)








UNITS SOLD:







Retail new vehicles sold


30,802


33,191


(7.2)

Retail used vehicles sold


25,202


26,856


(6.2)

Wholesale used vehicles sold


9,701


9,476


2.4

Total used


34,903


36,332


(3.9)








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$      37,133


$      36,254


2.4

Used vehicle retail


$      21,276


$      21,421


(0.7)








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$        1,851


$        1,857


(0.3)

Used vehicle retail sales


1,456


1,496


(2.7)

Used vehicle wholesale sales


25


3


733.3

Total used


1,059


1,107


(4.3)

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


$        1,688


$        1,602


5.4








OTHER: 







SG&A expenses


$    243,844


$    245,389


(0.6)

Adjusted SG&A expenses(1)


$    243,201


$    242,370


0.3

SG&A as % revenues


11.5


11.1



Adjusted SG&A as % revenues (1)


11.5


11.0



SG&A as % gross profit


71.6


71.2



Adjusted SG&A as % gross profit (1)


71.4


70.3



Operating margin %


4.0


4.0



Adjusted operating margin % (1)


4.0


4.1



Pretax margin %


2.6


2.8



Adjusted pretax margin % (1)


2.7


3.0










INTEREST EXPENSE:







Floorplan interest expense


$    (12,062)


$    (10,401)


16.0

Floorplan assistance


11,452


12,100


(5.4)

Net floorplan (expenses) income


$         (610)


$        1,699


(135.9)

Other interest expense, net


$    (16,572)


$    (15,357)


7.9

















Six Months Ended June 30,



2017


2016


% Increase/
(Decrease)

REVENUES:







New vehicle retail sales


$ 2,162,020


$ 2,303,703


(6.2)

Used vehicle retail sales


1,058,140


1,134,044


(6.7)

Used vehicle wholesale sales


137,021


130,935


4.6

Total used


1,195,161


1,264,979


(5.5)

Parts and service


553,857


533,983


3.7

Finance, insurance and other, net


180,371


186,350


(3.2)

Total 


$ 4,091,409


$ 4,289,015


(4.6)








GROSS MARGIN %:







New vehicle retail sales


5.0


5.0



Used vehicle retail sales


7.1


7.4



Used vehicle wholesale sales


(0.1)


0.7



Total used


6.2


6.7



Parts and service


53.8


54.4



Finance, insurance and other, net


100.0


100.0



Total


16.2


15.8










GROSS PROFIT:







New vehicle retail sales


$    108,209


$    115,787


(6.5)

Used vehicle retail sales


74,636


83,639


(10.8)

Used vehicle wholesale sales


(116)


871


(113.3)

Total used


74,520


84,510


(11.8)

Parts and service


297,969


290,660


2.5

Finance, insurance and other, net


180,371


186,350


(3.2)

Total 


$    661,069


$    677,307


(2.4)








UNITS SOLD:







Retail new vehicles sold


58,300


63,992


(8.9)

Retail used vehicles sold


50,131


53,687


(6.6)

Wholesale used vehicles sold


19,682


19,889


(1.0)

Total used


69,813


73,576


(5.1)








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$      37,084


$      36,000


3.0

Used vehicle retail


$      21,107


$      21,123


(0.1)








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$        1,856


$        1,809


2.6

Used vehicle retail sales


1,489


1,558


(4.4)

Used vehicle wholesale sales


(6)


44


(113.6)

Total used


1,067


1,149


(7.1)

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


$        1,663


$        1,584


5.0








OTHER: 







SG&A expenses


$    480,117


$    491,229


(2.3)

Adjusted SG&A expenses(1)


$    481,307


$    486,456


(1.1)

SG&A as % revenues


11.7


11.5



Adjusted SG&A as % revenues (1)


11.8


11.3



SG&A as % gross profit


72.6


72.5



Adjusted SG&A as % gross profit (1)


72.8


71.8



Operating margin %


3.8


3.8



Adjusted operating margin % (1)


3.8


4.0



Pretax margin %


2.5


2.6



Adjusted pretax margin % (1)


2.5


2.8










INTEREST EXPENSE:







Floorplan interest expense


$    (22,940)


$    (20,449)


12.2

Floorplan assistance


21,736


23,351


(6.9)

Net floorplan (expense) income


$      (1,204)


$        2,902


(141.5)

Other interest expense, net


$    (32,844)


$    (30,870)


6.4









(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 June 30,



2017


2016


% Increase/
(Decrease)


Constant Currency (1) 

% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$   231,415


$   262,028


(11.7)


(1.0)

Used vehicle retail sales


128,406


122,827


4.5


17.2

Used vehicle wholesale sales


30,448


33,367


(8.7)


2.2

Total used


158,854


156,194


1.7


14.0

Parts and service


37,050


39,949


(7.3)


3.9

Finance, insurance and other, net


9,784


9,621


1.7


13.9

Total


$   437,103


$   467,792


(6.6)


4.7










GROSS MARGIN %:









New vehicle retail sales


5.9


5.9





Used vehicle retail sales


5.2


5.6





Used vehicle wholesale sales


(2.3)


(0.3)





Total used


3.8


4.3





Parts and service


57.9


56.3





Finance, insurance and other, net


100.0


100.0





Total


11.7


11.6














GROSS PROFIT:









New vehicle retail sales


$     13,744


$     15,462


(11.1)


(0.6)

Used vehicle retail sales


6,679


6,854


(2.6)


9.4

Used vehicle wholesale sales


(715)


(114)


(527.2)


(585.0)

Total used


5,964


6,740


(11.5)


(0.3)

Parts and service


21,440


22,505


(4.7)


6.7

Finance, insurance and other, net


9,784


9,621


1.7


13.9

Total 


$     50,932


$     54,328


(6.3)


5.0










UNITS SOLD:









Retail new vehicles sold


7,894


7,868


0.3



Retail used vehicles sold


5,813


5,006


16.1



Wholesale used vehicles sold


4,137


3,997


3.5



Total used


9,950


9,003


10.5












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$     29,315


$     33,303


(12.0)


(1.4)

Used vehicle retail


$     22,089


$     24,536


(10.0)


1.0










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$       1,741


$       1,965


(11.4)


(0.9)

Used vehicle retail sales


1,149


1,369


(16.1)


(5.8)

Used vehicle wholesale sales


(173)


(29)


(496.6)


(561.8)

Total used


599


749


(20.0)


(9.8)

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


$          714


$          747


(4.4)


7.0










OTHER: 









SG&A expenses


$     42,456


$     42,109


0.8


13.1

Adjusted SG&A expenses(1)


$     42,168


$     42,109


0.1


12.3

SG&A as % revenues


9.7


9.0





Adjusted SG&A as % revenues (1)


9.6


9.0





SG&A as % gross profit


83.4


77.5





Adjusted SG&A as % gross profit (1)


82.8


77.5





Operating margin %


1.5


2.2





Adjusted operating margin % (1)


1.6


2.2





Pretax margin %


1.1


1.7





Adjusted pretax margin % (1)


1.2


1.7














INTEREST EXPENSE:









Floorplan interest expense


$      (1,053)


$      (1,134)


(7.1)


4.1

Floorplan assistance


220


225


(2.2)


9.7

Net floorplan expense


$         (833)


$         (909)


(8.4)


2.8

Other interest expense, net


$         (684)


$      (1,385)


(50.6)


(44.2)





















Six Months Ended June 30,



2017


2016


% Increase/
(Decrease)


Constant Currency (1)
% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$   490,055


$   508,564


(3.6)


9.8

Used vehicle retail sales


243,775


232,944


4.6


19.1

Used vehicle wholesale sales


60,957


65,399


(6.8)


6.1

Total used


304,732


298,343


2.1


16.2

Parts and service


73,831


74,498


(0.9)


12.8

Finance, insurance and other, net


18,812


18,283


2.9


17.0

Total 


$   887,430


$   899,688


(1.4)


12.3










GROSS MARGIN %:









New vehicle retail sales


5.7


5.8





Used vehicle retail sales


5.0


5.2





Used vehicle wholesale sales


(0.8)


0.7





Total used


3.8


4.2





Parts and service


57.8


55.0





Finance, insurance and other, net


100.0


100.0





Total


11.4


11.2














GROSS PROFIT:









New vehicle retail sales


$     28,145


$     29,316


(4.0)


9.2

Used vehicle retail sales


12,108


12,064


0.4


14.2

Used vehicle wholesale sales


(504)


458


(210.0)


(220.6)

Total used


11,604


12,522


(7.3)


5.6

Parts and service


42,665


40,953


4.2


18.6

Finance, insurance and other, net


18,812


18,283


2.9


17.0

Total 


$   101,226


$   101,074


0.2


14.0










UNITS SOLD:









Retail new vehicles sold


16,912


15,226


11.1



Retail used vehicles sold


11,424


9,601


19.0



Wholesale used vehicles sold


8,306


7,639


8.7



Total used


19,730


17,240


14.4












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$     28,977


$     33,401


(13.2)


(1.1)

Used vehicle retail


$     21,339


$     24,262


(12.0)


0.1










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$       1,664


$       1,925


(13.6)


(1.7)

Used vehicle retail sales


1,060


1,257


(15.7)


(4.0)

Used vehicle wholesale sales


(61)


60


(201.7)


(210.9)

Total used


588


726


(19.0)


(7.7)

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


$          664


$          736


(9.8)


2.5










OTHER: 









SG&A expenses


$     84,080


$     79,545


5.7


20.3

Adjusted SG&A expenses(1)


$     83,792


$     78,984


6.1


20.8

SG&A as % revenues


9.5


8.8





Adjusted SG&A as % revenues (1)


9.4


8.8





SG&A as % gross profit


83.1


78.7





Adjusted SG&A as % gross profit (1)


82.8


78.1





Operating margin %


1.5


2.0





Adjusted operating margin % (1)


1.6


2.1





Pretax margin %


1.2


1.5





Adjusted pretax margin % (1)


1.2


1.6














INTEREST EXPENSE:









Floorplan interest expense


$      (2,087)


$      (2,054)


1.6


15.6

Floorplan assistance


449


488


(8.0)


4.8

Net floorplan expense


$      (1,638)


$      (1,566)


4.6


19.0

Other interest expense, net


$      (1,265)


$      (2,667)


(52.6)


(46.0)











(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 - Brazil

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended June 30,



2017


2016


% Increase/
(Decrease)


Constant Currency (1)

  % Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$   73,582


$   75,420


(2.4)


(10.5)

Used vehicle retail sales


21,350


17,671


20.8


11.0

Used vehicle wholesale sales


2,453


850


188.6


166.2

Total used


23,803


18,521


28.5


18.1

Parts and service


11,883


11,599


2.4


(6.0)

Finance, insurance and other, net


2,134


1,735


23.0


12.9

Total


$ 111,402


$ 107,275


3.8


(4.7)










GROSS MARGIN %:









New vehicle retail sales


5.7


5.4





Used vehicle retail sales


7.2


6.9





Used vehicle wholesale sales


8.2


4.1





Total used


7.3


6.8





Parts and service


45.9


35.8





Finance, insurance and other, net


100.0


100.0





Total


12.1


10.4














GROSS PROFIT:









New vehicle retail sales


$     4,167


$     4,046


3.0


(5.5)

Used vehicle retail sales


1,530


1,227


24.7


14.6

Used vehicle wholesale sales


202


35


477.1


422.2

Total used


1,732


1,262


37.2


26.0

Parts and service


5,454


4,152


31.4


20.4

Finance, insurance and other, net


2,134


1,735


23.0


12.9

Total 


$   13,487


$   11,195


20.5


10.5










UNITS SOLD:









Retail new vehicles sold


2,180


2,585


(15.7)



Retail used vehicles sold


988


1,089


(9.3)



Wholesale used vehicles sold


237


211


12.3



Total used


1,225


1,300


(5.8)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$   33,753


$   29,176


15.7


6.1

Used vehicle retail


$   21,609


$   16,227


33.2


22.3










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$     1,911


$     1,565


22.1


12.1

Used vehicle retail sales


1,549


1,127


37.4


26.3

Used vehicle wholesale sales


852


166


413.3


364.9

Total used


1,414


971


45.6


33.7

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


$        674


$        472


42.8


30.9










OTHER: 









SG&A expenses


$   12,268


$   11,524


6.5


(2.3)

SG&A as % revenues


11.0


10.7





SG&A as % gross profit


91.0


102.9





Operating margin %


0.8


(0.6)





Pretax margin %


0.6


(0.6)














INTEREST EXPENSE:









Floorplan interest expense


$      (111)


$        (58)


91.4


76.6

Floorplan assistance


-


-


-


-

Net floorplan expense


$      (111)


$        (58)


91.4


76.6

Other interest expense, net


$        (59)


$          37


(259.5)


(248.2)





















Six Months Ended June 30,



2017


2016


% Increase/ (Decrease)


Constant Currency (1)%
Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$ 133,906


$ 138,342


(3.2)


(16.3)

Used vehicle retail sales


44,961


36,961


21.6


4.2

Used vehicle wholesale sales


5,556


1,537


261.5


212.1

Total used


50,517


38,498


31.2


12.5

Parts and service


23,641


22,184


6.6


(8.1)

Finance, insurance and other, net


4,121


3,077


33.9


15.8

Total 


$ 212,185


$ 202,101


5.0


(9.4)










GROSS MARGIN %:









New vehicle retail sales


5.8


5.6





Used vehicle retail sales


7.1


4.8





Used vehicle wholesale sales


8.2


4.4





Total used


7.2


4.8





Parts and service


44.8


36.8





Finance, insurance and other, net


100.0


100.0





Total


12.3


10.3














GROSS PROFIT:









New vehicle retail sales


$     7,784


$     7,772


0.2


(13.8)

Used vehicle retail sales


3,174


1,762


80.1


58.0

Used vehicle wholesale sales


453


68


566.2


468.8

Total used


3,627


1,830


98.2


73.2

Parts and service


10,587


8,161


29.7


11.6

Finance, insurance and other, net


4,121


3,077


33.9


15.8

Total 


$   26,119


$   20,840


25.3


8.1










UNITS SOLD:









Retail new vehicles sold


3,954


5,207


(24.1)



Retail used vehicles sold


2,014


2,454


(17.9)



Wholesale used vehicles sold


616


522


18.0



Total used


2,630


2,976


(11.6)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$   33,866


$   26,568


27.5


10.2

Used vehicle retail


$   22,324


$   15,062


48.2


27.0










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$     1,969


$     1,493


31.9


13.5

Used vehicle retail sales


1,576


718


119.5


92.5

Used vehicle wholesale sales


735


130


465.4


382.0

Total used


1,379


615


124.2


96.0

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


$        691


$        402


71.9


48.6










OTHER: 









SG&A expenses


$   24,150


$   21,913


10.2


(5.1)

Adjusted SG&A expenses(1)


$   24,150


$   21,542


12.1


(3.4)

SG&A as % revenues


11.4


10.8





Adjusted SG&A as % revenues (1)


11.4


10.7





SG&A as % gross profit


92.5


105.2





Adjusted SG&A as % gross profit (1)


92.5


103.4





Operating margin %


0.6


(1.0)





Adjusted operating margin % (1)


0.6


(0.6)





Pretax margin %


0.4


(1.1)





Adjusted pretax margin % (1)


0.4


(0.7)














INTEREST EXPENSE:









Floorplan interest expense


$      (141)


$      (100)


41.0


23.7

Floorplan assistance


-


-


-


-

Net floorplan expense


$      (141)


$      (100)


41.0


23.7

Other interest expense, net


$      (205)


$        (97)


111.3


61.0











(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 June 30,



2017


2016


% Increase/
(Decrease)


Constant Currency % (1)
Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$ 1,448,768


$ 1,540,759


(6.0)


(4.6)

Used vehicle retail sales


685,949


715,778


(4.2)


(2.2)

Used vehicle wholesale sales


99,377


96,279


3.2


6.8

Total used


785,326


812,057


(3.3)


(1.2)

Parts and service


331,631


322,073


3.0


4.1

Finance, insurance and other, net


106,470


107,560


(1.0)


(0.1)

Total


$ 2,672,195


$ 2,782,449


(4.0)


(2.4)










GROSS MARGIN %:









New vehicle retail sales


5.2


5.3





Used vehicle retail sales


6.5


6.7





Used vehicle wholesale sales


(0.3)


(0.1)





Total used


5.7


5.9





Parts and service


53.9


53.8





Finance, insurance and other, net


100.0


100.0





Total


15.2


14.7














GROSS PROFIT:









New vehicle retail sales


$      74,911


$      81,148


(7.7)


(6.1)

Used vehicle retail sales


44,913


48,265


(6.9)


(5.5)

Used vehicle wholesale sales


(267)


(52)


(413.5)


(570.2)

Total used


44,646


48,213


(7.4)


(6.1)

Parts and service


178,865


173,198


3.3


4.5

Finance, insurance and other, net


106,470


107,560


(1.0)


(0.1)

Total 


$    404,892


$    410,119


(1.3)


(0.1)










UNITS SOLD:









Retail new vehicles sold


40,876


43,644


(6.3)



Retail used vehicles sold


32,003


32,951


(2.9)



Wholesale used vehicles sold


14,075


13,684


2.9



Total used


46,078


46,635


(1.2)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$      35,443


$      35,303


0.4


1.9

Used vehicle retail


$      21,434


$      21,722


(1.3)


0.7










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$        1,833


$        1,859


(1.4)


0.3

Used vehicle retail sales


1,403


1,465


(4.2)


(2.7)

Used vehicle wholesale sales


(19)


(4)


(375.0)


(551.6)

Total used


969


1,034


(6.3)


(5.0)

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


$        1,461


$        1,404


4.1


5.0










OTHER: 









SG&A expenses


$    298,568


$    299,022


(0.2)


1.2

Adjusted SG&A expenses(1)


$    297,637


$    296,003


0.6


1.9

SG&A as % revenues


11.2


10.7





Adjusted SG&A as % revenues (1)


11.1


10.6





SG&A as % gross profit


73.7


72.9





Adjusted SG&A as % gross profit (1)


73.5


72.2





Operating margin %


3.5


3.5





Adjusted operating margin % (1)


3.5


3.6





Pretax margin %


2.3


2.5





Adjusted pretax margin % (1)


2.3


2.6














INTEREST EXPENSE:









Floorplan interest expense


$    (13,226)


$    (11,593)


14.1


15.1

Floorplan assistance


11,672


12,325


(5.3)


(5.1)

Net floorplan income


$      (1,554)


$           732


(312.3)


(324.9)

Other interest expense, net


$    (17,315)


$    (16,705)


3.7


4.2





















Six Months Ended June 30,



2017


2016


% Increase/
(Decrease)


Constant Currency % (1)

Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$ 2,785,981


$ 2,950,609


(5.6)


(3.9)

Used vehicle retail sales


1,346,876


1,403,949


(4.1)


(2.1)

Used vehicle wholesale sales


203,534


197,871


2.9


6.7

Total used


1,550,410


1,601,820


(3.2)


(1.0)

Parts and service


651,329


630,665


3.3


4.4

Finance, insurance and other, net


203,304


207,710


(2.1)


(1.1)

Total 


$ 5,191,024


$ 5,390,804


(3.7)


(2.0)










GROSS MARGIN %:









New vehicle retail sales


5.2


5.2





Used vehicle retail sales


6.7


6.9





Used vehicle wholesale sales


(0.1)


0.7





Total used


5.8


6.2





Parts and service


53.9


53.9





Finance, insurance and other, net


100.0


100.0





Total


15.2


14.8














GROSS PROFIT:









New vehicle retail sales


$    144,138


$    152,875


(5.7)


(3.9)

Used vehicle retail sales


89,918


97,465


(7.7)


(6.4)

Used vehicle wholesale sales


(167)


1,397


(112.0)


(120.2)

Total used


89,751


98,862


(9.2)


(8.0)

Parts and service


351,221


339,774


3.4


4.7

Finance, insurance and other, net


203,304


207,710


(2.1)


(1.1)

Total 


$    788,414


$    799,221


(1.4)


(0.1)










UNITS SOLD:









Retail new vehicles sold


79,166


84,425


(6.2)



Retail used vehicles sold


63,569


65,742


(3.3)



Wholesale used vehicles sold


28,604


28,050


2.0



Total used


92,173


93,792


(1.7)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$      35,192


$      34,949


0.7


2.5

Used vehicle retail


$      21,188


$      21,355


(0.8)


1.2










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$        1,821


$        1,811


0.6


2.5

Used vehicle retail sales


1,414


1,483


(4.7)


(3.2)

Used vehicle wholesale sales


(6)


50


(112.0)


(119.8)

Total used


974


1,054


(7.6)


(6.4)

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


$        1,424


$        1,383


3.0


4.0










OTHER: 









SG&A expenses


$    588,347


$    592,687


(0.7)


0.7

Adjusted SG&A expenses(1)


$    589,249


$    586,983


0.4


1.8

SG&A as % revenues


11.3


11.0





Adjusted SG&A as % revenues (1)


11.4


10.9





SG&A as % gross profit


74.6


74.2





Adjusted SG&A as % gross profit (1)


74.7


73.4





Operating margin %


3.3


3.3





Adjusted operating margin % (1)


3.3


3.5





Pretax margin %


2.2


2.3





Adjusted pretax margin % (1)


2.2


2.4














INTEREST EXPENSE:









Floorplan interest expense


$    (25,168)


$    (22,603)


11.3


12.5

Floorplan assistance


22,185


23,839


(6.9)


(6.7)

Net floorplan (expense) income 


$      (2,983)


$        1,236


(341.3)


(358.0)

Other interest expense, net


$    (34,314)


$    (33,634)


2.0


2.4











(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 June 30,



2017


2016


% Increase/
(Decrease)

REVENUES:







New vehicle retail sales


$ 1,140,004


$ 1,185,994


(3.9)

Used vehicle retail sales


535,010


566,676


(5.6)

Used vehicle wholesale sales


66,221


61,222


8.2

Total used


601,231


627,898


(4.2)

Parts and service


282,293


267,248


5.6

Finance, insurance and other, net


93,879


94,601


(0.8)

Total 


$ 2,117,407


$ 2,175,741


(2.7)








GROSS MARGIN %:







New vehicle retail sales


5.0


5.1



Used vehicle retail sales


6.8


7.0



Used vehicle wholesale sales


0.4


0.0



Total used


6.1


6.3



Parts and service


53.8


54.1



Finance, insurance and other, net


100.0


100.0



Total


16.0


15.6










GROSS PROFIT:







New vehicle retail sales


$      56,994


$      61,049


(6.6)

Used vehicle retail sales


36,641


39,778


(7.9)

Used vehicle wholesale sales


248


23


978.3

Total used


36,889


39,801


(7.3)

Parts and service


151,781


144,602


5.0

Finance, insurance and other, net


93,879


94,601


(0.8)

Total 


$    339,543


$    340,053


(0.1)








UNITS SOLD:







Retail new vehicles sold


30,675


32,534


(5.7)

Retail used vehicles sold


25,134


26,430


(4.9)

Wholesale used vehicles sold


9,662


9,326


3.6

Total used


34,796


35,756


(2.7)








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$      37,164


$      36,454


1.9

Used vehicle retail


$      21,286


$      21,441


(0.7)








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$        1,858


$        1,876


(1.0)

Used vehicle retail sales


1,458


1,505


(3.1)

Used vehicle wholesale sales


26


2


1,200.0

Total used


1,060


1,113


(4.8)

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


$        1,682


$        1,604


4.9








OTHER: 







SG&A expenses


$    242,734


$    240,987


0.7

Adjusted SG&A expenses(2)


$    242,091


$    237,968


1.7

SG&A as % revenues


11.5


11.1



Adjusted SG&A as % revenues (2)


11.4


10.9



SG&A as % gross profit


71.5


70.9



Adjusted SG&A as % gross profit (2)


71.3


70.0



Operating margin %


4.0


4.0



Adjusted operating margin % (2)


4.1


4.2












Six Months Ended June 30,



2017


2016


% Increase/
(Decrease)

REVENUES:







New vehicle retail sales


$ 2,158,251


$ 2,267,346


(4.8)

Used vehicle retail sales


1,056,956


1,116,531


(5.3)

Used vehicle wholesale sales


136,766


127,983


6.9

Total used


1,193,722


1,244,514


(4.1)

Parts and service


553,453


527,383


4.9

Finance, insurance and other, net


179,269


183,233


(2.2)

Total 


$ 4,084,695


$ 4,222,476


(3.3)








GROSS MARGIN %:







New vehicle retail sales


5.0


5.0



Used vehicle retail sales


7.1


7.4



Used vehicle wholesale sales


(0.1)


1.0



Total used


6.2


6.7



Parts and service


53.8


54.4



Finance, insurance and other, net


100.0


100.0



Total


16.2


15.8










GROSS PROFIT:







New vehicle retail sales


$    108,198


$    114,285


(5.3)

Used vehicle retail sales


74,576


82,131


(9.2)

Used vehicle wholesale sales


(95)


1,264


(107.5)

Total used


74,481


83,395


(10.7)

Parts and service


297,781


286,664


3.9

Finance, insurance and other, net


179,269


183,233


(2.2)

Total 


$    659,729


$    667,577


(1.2)








UNITS SOLD:







Retail new vehicles sold


58,173


62,596


(7.1)

Retail used vehicles sold


50,063


52,787


(5.2)

Wholesale used vehicles sold


19,643


19,439


1.0

Total used


69,706


72,226


(3.5)








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$      37,101


$      36,222


2.4

Used vehicle retail


$      21,113


$      21,152


(0.2)








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$        1,860


$        1,826


1.9

Used vehicle retail sales


1,490


1,556


(4.2)

Used vehicle wholesale sales


(5)


65


(107.7)

Total used


1,069


1,155


(7.4)

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


$        1,656


$        1,588


4.3








OTHER: 







SG&A expenses


$    478,685


$    482,012


(0.7)

Adjusted SG&A expenses(2)


$    479,875


$    476,174


0.8

SG&A as % revenues


11.7


11.4



Adjusted SG&A as % revenues (2)


11.7


11.3



SG&A as % gross profit


72.6


72.2



Adjusted SG&A as % gross profit (2)


72.7


71.3



Operating margin %


3.9


3.9



Adjusted operating margin % (2)


3.8


4.0











(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 U.K. (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended June 30,



2017


2016


% Increase/
(Decrease)


Constant Currency (2)
% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$ 226,002


$ 259,904


(13.0)


(2.6)

Used vehicle retail sales


121,817


120,775


0.9


13.1

Used vehicle wholesale sales


29,604


32,669


(9.4)


1.5

Total used


151,421


153,444


(1.3)


10.6

Parts and service


35,900


39,566


(9.3)


1.7

Finance, insurance and other, net


9,394


9,513


(1.3)


10.6

Total 


$ 422,717


$ 462,427


(8.6)


2.5










GROSS MARGIN %:









New vehicle retail sales


5.9


5.9





Used vehicle retail sales


5.2


5.5





Used vehicle wholesale sales


(2.2)


(0.3)





Total used


3.7


4.3





Parts and service


57.7


56.3





Finance, insurance and other, net


100.0


100.0





Total


11.6


11.6














GROSS PROFIT:









New vehicle retail sales


$   13,424


$   15,342


(12.5)


(2.1)

Used vehicle retail sales


6,335


6,694


(5.4)


6.3

Used vehicle wholesale sales


(661)


(97)


(581.4)


(641.0)

Total used


5,674


6,597


(14.0)


(3.1)

Parts and service


20,704


22,262


(7.0)


4.2

Finance, insurance and other, net


9,394


9,513


(1.3)


10.6

Total 


$   49,196


$   53,714


(8.4)


2.6










UNITS SOLD:









Retail new vehicles sold


7,630


7,741


(1.4)



Retail used vehicles sold


5,329


4,860


9.7



Wholesale used vehicles sold


3,883


3,879


0.1



Total used


9,212


8,739


5.4












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$   29,620


$   33,575


(11.8)


(1.1)

Used vehicle retail


$   22,859


$   24,851


(8.0)


3.2










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$     1,759


$     1,982


(11.3)


(0.7)

Used vehicle retail sales


1,189


1,377


(13.7)


(3.1)

Used vehicle wholesale sales


(170)


(25)


(580.0)


(640.2)

Total used


616


755


(18.4)


(8.1)

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


$        725


$        755


(4.0)


7.5










OTHER: 









SG&A expenses


$   40,612


$   41,306


(1.7)


10.2

Adjusted SG&A expenses(2)


$   40,324


$   41,306


(2.4)


9.5

SG&A as % revenues


9.6


8.9





Adjusted SG&A as % revenues (2)


9.5


8.9





SG&A as % gross profit


82.6


76.9





Adjusted SG&A as % gross profit (2)


82.0


76.9





Operating margin %


1.6


2.3





Adjusted operating margin % (2)


1.7


2.3
















Six Months Ended June 30,



2017


2016


% Increase/
(Decrease)


Constant Currency (2)
% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$ 448,307


$ 492,143


(8.9)


3.7

Used vehicle retail sales


215,868


221,449


(2.5)


10.8

Used vehicle wholesale sales


54,000


61,469


(12.2)


(0.2)

Total used


269,868


282,918


(4.6)


8.4

Parts and service


64,119


69,672


(8.0)


4.6

Finance, insurance and other, net


17,012


17,704


(3.9)


9.2

Total 


$ 799,306


$ 862,437


(7.3)


5.4










GROSS MARGIN %:









New vehicle retail sales


5.8


5.8





Used vehicle retail sales


5.1


5.4





Used vehicle wholesale sales


(0.3)


0.8





Total used


4.0


4.4





Parts and service


57.3


54.9





Finance, insurance and other, net


100.0


100.0





Total


11.4


11.3














GROSS PROFIT:









New vehicle retail sales


$   26,123


$   28,786


(9.3)


3.2

Used vehicle retail sales


11,078


11,892


(6.8)


5.9

Used vehicle wholesale sales


(162)


500


(132.4)


(132.2)

Total used


10,916


12,392


(11.9)


0.4

Parts and service


36,763


38,220


(3.8)


9.3

Finance, insurance and other, net


17,012


17,704


(3.9)


9.2

Total 


$   90,814


$   97,102


(6.5)


6.3










UNITS SOLD:









Retail new vehicles sold


15,280


14,625


4.5



Retail used vehicles sold


9,921


9,075


9.3



Wholesale used vehicles sold


7,244


7,240


0.1



Total used


17,165


16,315


5.2












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$   29,339


$   33,651


(12.8)


(0.7)

Used vehicle retail


$   21,759


$   24,402


(10.8)


1.4










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$     1,710


$     1,968


(13.1)


(1.3)

Used vehicle retail sales


1,117


1,310


(14.7)


(3.1)

Used vehicle wholesale sales


(22)


69


(131.9)


(132.2)

Total used


636


760


(16.3)


(4.6)

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


$        675


$        747


(9.6)


2.7










OTHER: 









SG&A expenses


$   71,800


$   73,323


(2.1)


11.3

Adjusted SG&A expenses(2)


$   71,512


$   72,762


(1.7)


11.7

SG&A as % revenues


9.0


8.5





Adjusted SG&A as % revenues (2)


8.9


8.4





SG&A as % gross profit


79.1


75.5





Adjusted SG&A as % gross profit (2)


78.7


74.9





Operating margin %


2.0


2.4





Adjusted operating margin % (2)


2.0


2.5















(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.

Additional Information - Same Store Brazil (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended June 30,



2017


2016


% Increase/
(Decrease)


Constant Currency (2)
  % Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$   72,041


$   70,868


1.7


(6.7)

Used vehicle retail sales


20,874


15,677


33.2


22.3

Used vehicle wholesale sales


2,419


618


291.4


260.4

Total used


23,293


16,295


42.9


31.4

Parts and service


11,605


9,735


19.2


9.5

Finance, insurance and other, net


2,065


1,512


36.6


25.4

Total 


$ 109,004


$   98,410


10.8


1.7










GROSS MARGIN %:









New vehicle retail sales


5.7


5.4





Used vehicle retail sales


7.2


7.1





Used vehicle wholesale sales


8.2


7.3





Total used


7.3


7.1





Parts and service


46.3


38.7





Finance, insurance and other, net


100.0


100.0





Total


12.1


10.5














GROSS PROFIT:









New vehicle retail sales


$     4,106


$     3,861


6.3


(2.4)

Used vehicle retail sales


1,505


1,115


35.0


24.2

Used vehicle wholesale sales


199


45


342.2


308.5

Total used


1,704


1,160


46.9


35.2

Parts and service


5,368


3,769


42.4


30.6

Finance, insurance and other, net


2,065


1,512


36.6


25.4

Total 


$   13,243


$   10,302


28.5


18.0










UNITS SOLD:









Retail new vehicles sold


2,130


2,331


(8.6)



Retail used vehicles sold


969


931


4.1



Wholesale used vehicles sold


234


147


59.2



Total used


1,203


1,078


11.6












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$   33,822


$   30,402


11.2


2.1

Used vehicle retail


$   21,542


$   16,839


27.9


17.5










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$     1,928


$     1,656


16.4


6.8

Used vehicle retail sales


1,553


1,198


29.6


19.3

Used vehicle wholesale sales


850


306


177.8


156.6

Total used


1,416


1,076


31.6


21.1

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


$        666


$        464


43.5


32.0










OTHER: 









SG&A expenses


$   11,695


$     9,551


22.4


12.4

SG&A as % revenues


10.7


9.7





SG&A as % gross profit


88.3


92.7





Operating margin %


1.1


0.4
















Six Months Ended June 30,



2017


2016


% Increase/

 (Decrease)


Constant Currency (2)
   % Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$ 125,953


$ 128,078


(1.7)


(14.8)

Used vehicle retail sales


41,279


32,077


28.7


10.5

Used vehicle wholesale sales


5,430


1,060


412.3


344.4

Total used


46,709


33,137


41.0


21.1

Parts and service


21,849


17,868


22.3


5.8

Finance, insurance and other, net


3,755


2,583


45.4


26.0

Total 


$ 198,266


$ 181,666


9.1


(5.6)










GROSS MARGIN %:









New vehicle retail sales


5.9


5.6





Used vehicle retail sales


7.3


4.9





Used vehicle wholesale sales


8.1


7.5





Total used


7.4


5.0





Parts and service


46.0


39.1





Finance, insurance and other, net


100.0


100.0





Total


12.4


10.2














GROSS PROFIT:









New vehicle retail sales


$     7,395


$     7,211


2.6


(11.5)

Used vehicle retail sales


3,019


1,585


90.5


67.1

Used vehicle wholesale sales


438


80


447.5


376.9

Total used


3,457


1,665


107.6


81.9

Parts and service


10,057


6,989


43.9


24.3

Finance, insurance and other, net


3,755


2,583


45.4


26.0

Total 


$   24,664


$   18,448


33.7


15.6










UNITS SOLD:









Retail new vehicles sold


3,709


4,538


(18.3)



Retail used vehicles sold


1,897


1,979


(4.1)



Wholesale used vehicles sold


481


351


37.0



Total used


2,378


2,330


2.1












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$   33,959


$   28,223


20.3


4.2

Used vehicle retail


$   21,760


$   16,209


34.2


15.2










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$     1,994


$     1,589


25.5


8.3

Used vehicle retail sales


1,591


801


98.6


74.4

Used vehicle wholesale sales


911


228


299.6


248.0

Total used


1,454


715


103.4


78.3

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


$        670


$        396


69.2


46.5










OTHER: 









SG&A expenses


$   21,947


$   17,429


25.9


8.8

SG&A as % revenues


11.1


9.6





SG&A as % gross profit


89.0


94.5





Operating margin %


1.0


0.2















(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 June 30,



2017


2016


% Increase/
(Decrease)


Constant Currency (2)
   
 % Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$ 1,438,047


$ 1,516,766


(5.2)


(3.8)

Used vehicle retail sales


677,701


703,128


(3.6)


(1.8)

Used vehicle wholesale sales


98,244


94,509


4.0


7.5

Total used


775,945


797,637


(2.7)


(0.7)

Parts and service


329,798


316,549


4.2


5.3

Finance, insurance and other, net


105,338


105,626


(0.3)


0.6

Total 


$ 2,649,128


$ 2,736,578


(3.2)


(1.7)










GROSS MARGIN %:









New vehicle retail sales


5.2


5.3





Used vehicle retail sales


6.6


6.8





Used vehicle wholesale sales


(0.2)






Total used


5.7


6.0





Parts and service


53.9


53.9





Finance, insurance and other, net


100.0


100.0





Total


15.2


14.8














GROSS PROFIT:









New vehicle retail sales


$      74,524


$      80,252


(7.1)


(5.6)

Used vehicle retail sales


44,481


47,587


(6.5)


(5.1)

Used vehicle wholesale sales


(214)


(29)


(637.9)


(894.7)

Total used


44,267


47,558


(6.9)


(5.7)

Parts and service


177,853


170,633


4.2


5.4

Finance, insurance and other, net


105,338


105,626


(0.3)


0.6

Total 


$    401,982


$    404,069


(0.5)


0.7










UNITS SOLD:









Retail new vehicles sold


40,435


42,606


(5.1)



Retail used vehicles sold


31,432


32,221


(2.4)



Wholesale used vehicles sold


13,779


13,352


3.2



Total used


45,211


45,573


(0.8)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$      35,564


$      35,600


(0.1)


1.4

Used vehicle retail


$      21,561


$      21,822


(1.2)


0.7










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$        1,843


$        1,884


(2.2)


(0.5)

Used vehicle retail sales


1,415


1,477


(4.2)


(2.8)

Used vehicle wholesale sales


(16)


(2)


(700.0)


(863.9)

Total used


979


1,044


(6.2)


(4.9)

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


$        1,466


$        1,412


3.8


4.8










OTHER: 









SG&A expenses


$    295,041


$    291,844


1.1


2.5

Adjusted SG&A expenses(2)


$    294,110


$    288,825


1.8


3.2

SG&A as % revenues


11.1


10.7





Adjusted SG&A as % revenues (2)


11.1


10.6





SG&A as % gross profit


73.4


72.2





Adjusted SG&A as % gross profit (2)


73.2


71.5





Operating margin %


3.5


3.6





Adjusted operating margin % (2)


3.6


3.8
















Six Months Ended June 30,



2017


2016


% Increase/
(Decrease)


Constant Currency (2)
   
 % Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$ 2,732,511


$ 2,887,567


(5.4)


(3.8)

Used vehicle retail sales


1,314,103


1,370,057


(4.1)


(2.4)

Used vehicle wholesale sales


196,196


190,512


3.0


6.5

Total used


1,510,299


1,560,569


(3.2)


(1.3)

Parts and service


639,421


614,923


4.0


4.9

Finance, insurance and other, net


200,036


203,520


(1.7)


(0.8)

Total 


$ 5,082,267


$ 5,266,579


(3.5)


(1.9)










GROSS MARGIN %:









New vehicle retail sales


5.2


5.2





Used vehicle retail sales


6.7


7.0





Used vehicle wholesale sales


0.1


1.0





Total used


5.9


6.2





Parts and service


53.9


54.0





Finance, insurance and other, net


100.0


100.0





Total


15.3


14.9














GROSS PROFIT:









New vehicle retail sales


$    141,716


$    150,282


(5.7)


(4.0)

Used vehicle retail sales


88,673


95,608


(7.3)


(6.0)

Used vehicle wholesale sales


181


1,844


(90.2)


(93.3)

Total used


88,854


97,452


(8.8)


(7.7)

Parts and service


344,601


331,873


3.8


4.9

Finance, insurance and other, net


200,036


203,520


(1.7)


(0.8)

Total 


$    775,207


$    783,127


(1.0)


0.1










UNITS SOLD:









Retail new vehicles sold


77,162


81,759


(5.6)



Retail used vehicles sold


61,881


63,841


(3.1)



Wholesale used vehicles sold


27,368


27,030


1.3



Total used


89,249


90,871


(1.8)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$      35,413


$      35,318


0.3


1.9

Used vehicle retail


$      21,236


$      21,460


(1.0)


0.7










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$        1,837


$        1,838


(0.1)


1.7

Used vehicle retail sales


1,433


1,498


(4.3)


(3.1)

Used vehicle wholesale sales


7


68


(89.7)


(93.4)

Total used


996


1,072


(7.1)


(6.0)

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


$        1,439


$        1,398


2.9


3.9










OTHER: 









SG&A expenses


$    572,432


$    572,764


(0.1)


1.1

Adjusted SG&A expenses(2)


$    573,334


$    566,365


1.2


2.4

SG&A as % revenues


11.3


10.9





Adjusted SG&A as % revenues (2)


11.3


10.8





SG&A as % gross profit


73.8


73.1





Adjusted SG&A as % gross profit (2)


74.0


72.3





Operating margin %


3.5


3.5





Adjusted operating margin % (2)


3.4


3.7















(1)

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

(2)

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)










Three Months Ended June 30,



2017


2016


% Increase/
(Decrease)

SG&A RECONCILIATION:







As reported

$ 243,844


$ 245,389


(0.6)


  Pre-tax adjustments:







 Catastrophic events 

(643)


(2,769)




  Loss on real estate and dealership transactions 

-


(250)




Adjusted SG&A (1)

$ 243,201


$ 242,370


0.3








SG&A AS % REVENUES:







Unadjusted

11.5


11.1




Adjusted (1)

11.5


11.0



SG&A AS % GROSS PROFIT:







Unadjusted

71.6


71.2




Adjusted (1)

71.4


70.3



OPERATING MARGIN %:







Unadjusted

4.0


4.0




Adjusted (1), (2)

4.0


4.1



PRETAX MARGIN %:







Unadjusted

2.6


2.8




Adjusted (1), (2)

2.7


3.0










SAME STORE SG&A RECONCILIATION:














As reported

$ 242,734


$ 240,987


0.7


  Pre-tax adjustments:







 Catastrophic events 

(643)


(2,769)




 Loss on real estate and dealership transactions 

-


(250)




Adjusted Same Store SG&A (1)

$ 242,091


$ 237,968


1.7








SAME STORE SG&A AS % REVENUES:







Unadjusted

11.5


11.1




Adjusted (1)

11.4


10.9



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

71.5


70.9




Adjusted (1)

71.3


70.0



SAME STORE OPERATING MARGIN %:







Unadjusted

4.0


4.0




Adjusted (1), (3)

4.1


4.2












 Six Months Ended June 30, 



2017


2016


% Increase/
(Decrease)

SG&A RECONCILIATION:







As reported

$ 480,117


$ 491,229


(2.3)


  Pre-tax adjustments:







 Catastrophic events 

(643)


(5,423)




 Gain on real estate and dealership transactions 

-


680




 Acquisition costs 

-


(30)




     Legal settlements (4)

1,833


-




Adjusted SG&A (1)

$ 481,307


$ 486,456


(1.1)








SG&A AS % REVENUES:







Unadjusted

11.7


11.5




Adjusted (1)

11.8


11.3



SG&A AS % OF GROSS PROFIT:







Unadjusted

72.6


72.5




Adjusted (1)

72.8


71.8



OPERATING MARGIN %:







 Unadjusted 

3.8


3.8




Adjusted (1), (2)

3.8


4.0



PRETAX MARGIN %:







Unadjusted

2.5


2.6




Adjusted (1), (2)

2.5


2.8










SAME STORE SG&A RECONCILIATION:














As reported

$ 478,685


$ 482,012


(0.7)


  Pre-tax adjustments:







 Catastrophic events 

(643)


(5,423)




 Loss on real estate and dealership transactions 

-


(385)




 Acquisition costs 

-


(30)




     Legal settlements (4)

1,833


-




Adjusted Same Store SG&A (1)

$ 479,875


$ 476,174


0.8








SAME STORE SG&A AS % REVENUES:







Unadjusted

11.7


11.4




Adjusted (1)

11.7


11.3



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

72.6


72.2




Adjusted (1)

72.7


71.3



SAME STORE OPERATING MARGIN %:







Unadjusted

3.9


3.9




Adjusted (1), (3)

3.8


4.0










(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 $1,024 and $1,534 for the three and six months ended June 30, 2016, respectively.

(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of  $1,024 and $1,534 for the three and six months ended June 30, 2016, respectively.

(4)

For the six months ended June 30, 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)










Three Months Ended June 30,



2017


2016


% Increase/
(Decrease)

SG&A RECONCILIATION:







As reported

$ 42,456


$ 42,109


0.8


  Pre-tax adjustments:







 Acquisition costs 

(288)


-




Adjusted SG&A (1)

$ 42,168


$ 42,109


0.1








SG&A AS % REVENUES:







Unadjusted

9.7


9.0




Adjusted (1)

9.6


9.0



SG&A AS % GROSS PROFIT:







Unadjusted

83.4


77.5




Adjusted (1)

82.8


77.5



OPERATING MARGIN %







Unadjusted

1.5


2.2




Adjusted (1)

1.6


2.2



PRETAX MARGIN %:







Unadjusted

1.1


1.7




Adjusted (1)

1.2


1.7










SAME STORE SG&A RECONCILIATION:














As reported

$ 40,612


$ 41,306


(1.7)


  Pre-tax adjustments:







 Acquisition costs 

(288)


-




Adjusted Same Store SG&A (1)

$ 40,324


$ 41,306


(2.4)








SAME STORE SG&A AS % REVENUES:







Unadjusted

9.6


8.9




Adjusted (1)

9.5


8.9



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

82.6


76.9




Adjusted (1)

82.0


76.9



SAME STORE OPERATING MARGIN %:







Unadjusted

1.6


2.3




Adjusted (1)

1.7


2.3












 Six Months Ended June 30, 



2017


2016


% Increase/
(Decrease)

SG&A RECONCILIATION:














As reported

$ 84,080


$ 79,545


5.7


  Pre-tax adjustments:







 Acquisition costs 

(288)


(561)




Adjusted SG&A (1)

$ 83,792


$ 78,984


6.1








SG&A AS % REVENUES:







Unadjusted

9.5


8.8




Adjusted (1)

9.4


8.8



SG&A AS % OF GROSS PROFIT:







Unadjusted

83.1


78.7




Adjusted (1)

82.8


78.1



OPERATING MARGIN %:







Unadjusted

1.5


2.0




Adjusted (1)

1.6


2.1



PRETAX MARGIN %:







Unadjusted

1.2


1.5




Adjusted (1)

1.2


1.6










SAME STORE SG&A RECONCILIATION:














As reported

$ 71,800


$ 73,323


(2.1)


  Pre-tax adjustments:







 Acquisition costs 

(288)


(561)




Adjusted Same Store SG&A (1)

$ 71,512


$ 72,762


(1.7)








SAME STORE SG&A AS % REVENUES:







Unadjusted

9.0


8.5




Adjusted (1)

8.9


8.4



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

79.1


75.5




Adjusted (1)

78.7


74.9



SAME STORE OPERATING MARGIN %:







Unadjusted

2.0


2.4




Adjusted (1)

2.0


2.5










(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.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Brazil

(Unaudited)

 (Dollars in thousands)










 Six Months Ended June 30, 



2017


2016


% Increase/
(Decrease)

SG&A RECONCILIATION:







As reported

$ 24,150


$ 21,913


10.2


  Pre-tax adjustments:







 Loss on real estate and dealership transactions 

-


(371)




Adjusted SG&A (1)

$ 24,150


$ 21,542


12.1








SG&A AS % REVENUES:







Unadjusted

11.4


10.8




Adjusted (1)

11.4


10.7



SG&A AS % OF GROSS PROFIT:







Unadjusted

92.5


105.2




Adjusted (1)

92.5


103.4



OPERATING MARGIN %:







Unadjusted

0.6


(1.0)




Adjusted (1), (2)

0.6


(0.6)



PRETAX MARGIN %:







Unadjusted

0.4


(1.1)




Adjusted (1), (2)

0.4


(0.7)










(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 six months ended June 30, 2016.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - CONSOLIDATED

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended June 30,



2017


2016


% Increase/
(Decrease)








NET INCOME RECONCILIATION:







As reported

$   39,133


$   46,580


(16.0)


  Pre-tax adjustments:







 Catastrophic events 







 Pre-tax 

643


2,769




 Tax impact 

(250)


(1,042)




 Loss on real estate and dealership transactions 







 Pre-tax 

-


250




 Tax impact 

-


(94)




 Acquisition costs  







 Pre-tax 

288


-




 Tax impact 

-


-




 Non-cash asset impairment 







 Pre-tax  

-


1,024




 Tax impact 

-


(391)




 Foreign deferred income tax benefit 







 Tax impact 

-


(1,686)




Adjusted net income (1)

$   39,814


$   47,410


(16.0)








ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED







COMMON SHARES RECONCILIATION:







Adjusted net income (1)

$   39,814


$   47,410


(16.0)


Less: Adjusted earnings allocated to participating securities

1,413


1,918


(26.3)


Adjusted net income available to diluted common shares (1)

$   38,401


$   45,492


(15.6)








 DILUTED INCOME PER COMMON SHARE RECONCILIATION: 






As reported

$       1.84


$       2.12


(13.2)


  After-tax adjustments:







    Catastrophic events  

0.02


0.08




    Loss on real estate and dealership transactions 

-


0.01




    Acquisition costs  

0.01


-




    Non-cash asset impairment 

-


0.03




    Foreign deferred income tax benefit 

-


(0.08)




Adjusted diluted income per share (1)

$       1.87


$       2.16


(13.4)








SG&A RECONCILIATION:







As reported

$ 298,568


$ 299,022


(0.2)


  Pre-tax adjustments:







    Catastrophic events  

(643)


(2,769)




    Loss on real estate and dealership transactions 

-


(250)




    Acquisition costs 

(288)


-




Adjusted SG&A (1)

$ 297,637


$ 296,003


0.6








SG&A AS % REVENUES:







Unadjusted

11.2


10.7




Adjusted (1)

11.1


10.6



SG&A AS % GROSS PROFIT:







Unadjusted

73.7


72.9




Adjusted (1)

73.5


72.2



OPERATING MARGIN %:







Unadjusted

3.5


3.5




Adjusted (1), (2)

3.5


3.6



PRETAX MARGIN %:







Unadjusted

2.3


2.5




Adjusted (1), (2)

2.3


2.6










SAME STORE SG&A RECONCILIATION:







As reported

$ 295,041


$ 291,844


1.1


  Pre-tax adjustments:







    Catastrophic events  

(643)


(2,769)




    Loss on real estate and dealership transactions 

-


(250)




    Acquisition costs 

(288)


-




Adjusted Same Store SG&A (1)

$ 294,110


$ 288,825


1.8








SAME STORE SG&A AS % REVENUES:







Unadjusted

11.1


10.7




Adjusted (1)

11.1


10.6



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

73.4


72.2




Adjusted (1)

73.2


71.5



SAME STORE OPERATING MARGIN %:







Unadjusted

3.5


3.6




Adjusted (1), (3)

3.6


3.8












 Six Months Ended June 30, 



2017


2016


% Increase/
(Decrease)

NET INCOME RECONCILIATION:







As reported

$   73,072


$   80,871


(9.6)


  Adjustments:







 Catastrophic events  







 Pre-tax 

643


5,423




 Tax impact 

(250)


(2,038)




 Loss on real estate and dealership transactions 







 Pre-tax 

-


113




 Tax impact 

-


255




 Acquisition costs  







 Pre-tax 

288


591




 Tax impact 

-


(11)




   Legal settlements (4)







 Pre-tax 

(1,833)


-




 Tax impact 

696


-




 Non-cash asset impairment 







 Pre-tax 

-


1,533




 Tax impact 

-


(586)




 Foreign deferred income tax benefit 







 Tax impact 

-


(1,686)




Adjusted net income (1)

$   72,616


$   84,465


(14.0)








ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED







COMMON SHARES RECONCILIATION:







Adjusted net income (1)

$   72,616


$   84,465


(14.0)


Less: Adjusted earnings allocated to participating securities

2,628


3,367


(21.9)


Adjusted net income available to diluted common shares (1)

$   69,988


$   81,098


(13.7)








 DILUTED INCOME PER COMMON SHARE RECONCILIATION: 






As reported

$       3.42


$       3.57


(4.2)


  After-tax adjustments:







    Catastrophic events  

0.02


0.15




    Loss on real estate and dealership transactions 

-


0.02




    Acquisition costs  

0.01


0.02




   Legal settlements (4)

(0.05)


-




    Non-cash asset impairment 

-


0.04




    Foreign deferred income tax benefit 

-


(0.07)




Adjusted diluted income per share (1)

$       3.40


$       3.73


(8.8)















SG&A RECONCILIATION:







As reported

$ 588,347


$ 592,687


(0.7)


  Pre-tax adjustments:







    Catastrophic events  

(643)


(5,423)




    Gain on real estate and dealership transactions 

-


310




    Acquisition costs 

(288)


(591)




   Legal settlements (4)

1,833


-




Adjusted SG&A (1)

$ 589,249


$ 586,983


0.4








SG&A AS % REVENUES:







Unadjusted

11.3


11.0




Adjusted (1)

11.4


10.9



SG&A AS % OF GROSS PROFIT:







Unadjusted

74.6


74.2




Adjusted (1)

74.7


73.4



OPERATING MARGIN %:







Unadjusted

3.3


3.3




Adjusted (1), (2)

3.3


3.5



PRETAX MARGIN %:







Unadjusted

2.2


2.3




Adjusted (1), (2)

2.2


2.4










SAME STORE SG&A RECONCILIATION:







As reported

$ 572,432


$ 572,764


(0.1)


  Pre-tax adjustments:







    Catastrophic events  

(643)


(5,423)




    Loss on real estate and dealership transactions 

-


(385)




    Acquisition costs 

(288)


(591)




   Legal settlements (4)

1,833


-




Adjusted Same Store SG&A (1)

$ 573,334


$ 566,365


1.2








SAME STORE SG&A AS % REVENUES:







Unadjusted

11.3


10.9




Adjusted (1)

11.3


10.8



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

73.8


73.1




Adjusted (1)

74.0


72.3



SAME STORE OPERATING MARGIN %:







Unadjusted

3.5


3.5




Adjusted (1), (3)

3.4


3.7










(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 $1,024 and $1,956 for the three and six months ended June 30, 2016, respectively.

(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $1,024 and $1,534 for the three and six months ended June 30, 2016, respectively.

(4)

For the six months ended June 30, 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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