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Group 1 Automotive

800 Gessner
Houston, TX 77024

  • Sales: (713) 647-5700
Investor Relations

Group 1 Automotive Reports Third Quarter 2017 Financial Results

Strong Replacement Demand in Texas & Improved Profitability in the U.K. and Brazil Delivers Record Operating Results

HOUSTON, Oct. 26, 2017 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), ("Group 1" or the "Company"), an international, Fortune 500 automotive retailer, today reported 2017 third quarter net income of $29.9 million, diluted earnings per common share of $1.43, adjusted net income (a non-GAAP measure) of $46.6 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $2.23.

Third quarter 2017 adjusted net income and diluted earnings per share exclude approximately $16.8 million of net, after-tax adjustments, or $0.80 per share, for non-core items. These adjustments primarily consist of costs directly associated with Hurricane Harvey of approximately $9.0 million after-tax, or $0.44 per share; and, franchise right impairments of $5.9 million after-tax, or $0.28 per share. Reconciliations of non-GAAP financial measures are included in the attached financial tables.

"While the Company's third quarter results were negatively affected by both the non-recurring costs from Hurricane Harvey, as well as business disruption for more than a week across our largest revenue-generating market, strong demand for replacement vehicles in September provided significant financial recovery," said Earl J. Hesterberg, Group 1's president and chief executive officer. "We expect this recovery to continue for a number of months, as the region continues to rebuild from Hurricane Harvey's widespread impact. Our overseas businesses were also positive factors in our third quarter results. Although the U.K. new vehicle market declined roughly nine percent in the third quarter, we significantly outperformed the industry with our Same Store new vehicle unit sales rising 2.9 percent. Our used vehicle and F&I businesses were up almost 10 percent driving a total Same Store revenue increase of nine percent on a local currency basis. In Brazil, our operations delivered another quarter of profitability, with gross profit up 19.4 percent on a Same Store constant currency basis, reflecting continued double-digit growth in used, aftersales, and F&I. Our combined performance in all three markets delivered record revenues, gross profit, and adjusted earnings for the quarter."

Consolidated Results for Third 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 increased 6.7 percent (increased 6.6 percent) to a record $3.0 billion; total gross profit increased 6.1 percent (increased 6.0 percent) to a record $431.4 million.
  • New vehicle revenues increased 7.7 percent (increased 7.5 percent) on a 6.0 percent increase in unit sales. New vehicle gross profit increased 9.8 percent (increased 9.6 percent) to a record $88.3 million. U.S. new vehicle margins were up 6.1 percent, or $108 per unit, to $1,891.
  • Retail used vehicle revenues increased 5.8 percent (increased 5.7 percent) on a 4.1 percent increase in unit sales. Retail used vehicle gross profit increased 2.5 percent (increased 2.5 percent) to $47.1 million as the unit sales increase was partially offset by a slight margin decrease of 1.4 percent (decreased 1.5 percent), or $20 per unit, to $1,372.
  • Parts and service gross profit increased 6.8 percent (increased 6.7 percent) on revenue growth of 7.4 percent (increased 7.3 percent). Same Store parts and service gross profit increased 4.5 percent (increased 4.4 percent) on revenue growth of 5.1 percent (increased 5.0 percent). U.S. Same Store parts and service revenue increased 4.7 percent.
  • Finance and Insurance (F&I) gross profit per retail unit (PRU) decreased 2.9 percent (decreased 3.0 percent) to $1,343 per retail unit. Adjusted F&I gross profit PRU (a non-GAAP measure) increased 2.8 percent (increased 2.8 percent) to $1,422, reflecting increases in all three regions.
  • Selling, General and Administrative (SG&A) expenses as a percent of gross profit increased 260 basis points to 76.1 percent. Adjusted SG&A expenses as a percent of gross profit (a non-GAAP measure) decreased 80 basis points to 72.8 percent.

 

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

  • United States:
    The Company's U.S. operations accounted for 76.4 percent of total revenues and 82.0 percent of total gross profit. On a Same Store basis, U.S. revenues were $2.3 billion, an increase of 1.5 percent. Adjusted U.S. revenue (a non-GAAP measure) increased 1.8 percent, reflecting 3.6 percent growth in new vehicles and a 4.7 percent increase in aftersales revenue. The aftersales growth came in spite of losing more than a week of operations in the key markets of Houston/Beaumont, Miami, and portions of the Gulf Coast. Total U.S. Same Store gross profit grew 2.1 percent. Adjusted total U.S. Same Store gross profit (a non-GAAP measure) increased 4.0 percent.
  • United Kingdom:
    The Company's U.K. operations accounted for 19.6 percent of total revenues and 14.7 percent of total gross profit. On a Same Store basis, new vehicle unit sales increased 2.9 percent, which outperformed the U.K.'s new vehicle industry decline of 8.9 percent. Total Same Store revenue grew 8.8 percent and total Same Store gross profit grew 8.6 percent, both on a constant currency basis. This gross profit growth was driven by a 22.2 percent increase in total used vehicle gross profit, a 10.6 percent increase in aftersales gross profit, a 9.8 percent increase in F&I gross profit, and a slight increase of 0.5 percent in new vehicle gross profit, all on a constant currency basis.
  • Brazil:
    The Company's Brazilian operations were profitable again this quarter and accounted for 4.0 percent of total revenues and 3.3 percent of total gross profit. Total Same Store revenue grew 14.0 percent (increased 11.2 percent) and total Same Store gross profit increased 22.4 percent (increased 19.4 percent), reflecting strong growth in Same Store total used vehicles gross profit of 27.7 percent (increased 24.5 percent) and a 30.9 percent increase (increased 27.8 percent) in Same Store aftersales gross profit. In addition, Same Store F&I gross profit PRU increased 30.6 percent (increased 27.4 percent). Same Store SG&A as a percentage of gross profit improved 1160 basis points (930 basis points on an adjusted basis) to 89.8 percent.

 

Corporate Development

As previously announced in July 2017, the Company acquired the Beadles Group Ltd in the U.K., which expanded the dealership footprint in the region to 43 stores, with expected annual revenues of $330 million. Also in July 2017, as previously announced, the Company 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. Additionally, as previously announced in August 2017, the Company acquired Audi Forth Worth in Texas, which has an expected annualized revenue of $55 million.  In October 2017, the Company closed a SEAT brand sales operation in Watford, England, which generated approximately $10 million in trailing-twelve-month revenues.

Year-to-date 2017, the Company has acquired 17 dealerships, which are expected to generate an estimated $490 million in annualized revenues, and the Company has disposed of three dealerships, which generated approximately $35 million in trailing-twelve-month revenues.

Share Repurchase Authorization

During the third quarter 2017, the Company repurchased approximately 20,000 shares at an average price per common share of $53.46 for a total of $1.1 million. Year to date, we have spent $40.1 million to repurchase approximately 650 thousand shares at an average price per common share of $61.75.  These repurchases represent three percent of the total outstanding common shares at the beginning of 2017. As of September 30, 2017, $49.6 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.

Third Quarter 2017 Earnings Conference Call Details

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

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

7378333

A telephonic replay will be available following the call through November 1, 2017 by dialing:

Domestic:

1-877-344-7529

International:

1-412-317-0088

Replay ID:

10113415

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 September 30, 

 

2017

 

2016

 

% Increase/

 (Decrease)

REVENUES:

         

New vehicle retail sales

$ 1,710,241

 

$ 1,587,952

 

7.7

Used vehicle retail sales

743,038

 

702,620

 

5.8

Used vehicle wholesale sales

104,827

 

104,218

 

0.6

Parts and service

343,193

 

319,676

 

7.4

Finance, insurance and other, net

110,993

 

108,710

 

2.1

Total revenues

3,012,292

 

2,823,176

 

6.7

           

COST OF SALES:

         

New vehicle retail sales

1,621,909

 

1,507,517

 

7.6

Used vehicle retail sales

695,915

 

656,652

 

6.0

Used vehicle wholesale sales

105,012

 

106,077

 

(1.0)

Parts and service

158,036

 

146,262

 

8.0

Total cost of sales

2,580,872

 

2,416,508

 

6.8

           

GROSS PROFIT

431,420

 

406,668

 

6.1

           

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

328,327

 

299,006

 

9.8

           

DEPRECIATION AND AMORTIZATION EXPENSE

15,059

 

12,891

 

16.8

           

ASSET IMPAIRMENTS

9,526

 

10,855

 

(12.2)

           

OPERATING INCOME

78,508

 

83,916

 

(6.4)

           

OTHER EXPENSE:

         

Floorplan interest expense

(13,491)

 

(11,135)

 

21.2

Other interest expense, net

(17,874)

 

(17,094)

 

4.6

INCOME BEFORE INCOME TAXES

47,143

 

55,687

 

(15.3)

           

PROVISION FOR INCOME TAXES

(17,262)

 

(20,321)

 

(15.1)

           

NET INCOME 

$      29,881

 

$      35,366

 

(15.5)

Less: Earnings allocated to participating securities

$        1,023

 

$        1,426

 

(28.3)

Earnings available to diluted common shares

$      28,858

 

$      33,940

 

(15.0)

DILUTED EARNINGS PER SHARE

$          1.43

 

$          1.65

 

(13.3)

Weighted average dilutive common shares outstanding

20,225

 

20,578

 

(1.7)

Weighted average participating securities

724

 

872

 

(17.0)

Total weighted average shares outstanding

20,949

 

21,450

 

(2.3)

           
 

 Nine Months Ended September 30, 

 

2017

 

2016

 

% Increase/
(Decrease)

REVENUES:

         

New vehicle retail sales

$ 4,496,222

 

$ 4,538,562

 

(0.9)

Used vehicle retail sales

2,089,914

 

2,106,569

 

(0.8)

Used vehicle wholesale sales

308,361

 

302,089

 

2.1

Parts and service

994,522

 

950,341

 

4.6

Finance, insurance and other, net

314,297

 

316,419

 

(0.7)

Total revenues

8,203,316

 

8,213,980

 

(0.1)

           

COST OF SALES:

         

New vehicle retail sales

4,263,752

 

4,305,252

 

(1.0)

Used vehicle retail sales

1,952,873

 

1,963,136

 

(0.5)

Used vehicle wholesale sales

308,713

 

302,551

 

2.0

Parts and service

458,144

 

437,153

 

4.8

Total cost of sales

6,983,482

 

7,008,092

 

(0.4)

           

GROSS PROFIT

1,219,834

 

1,205,888

 

1.2

           

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

916,674

 

891,692

 

2.8

           

DEPRECIATION AND AMORTIZATION EXPENSE

42,758

 

38,067

 

12.3

           

ASSET IMPAIRMENTS

9,526

 

12,812

 

(25.6)

           

OPERATING INCOME

250,876

 

263,317

 

(4.7)

           

OTHER EXPENSE:

         

Floorplan interest expense

(38,659)

 

(33,737)

 

14.6

Other interest expense, net

(52,188)

 

(50,729)

 

2.9

INCOME BEFORE INCOME TAXES

160,029

 

178,851

 

(10.5)

           

PROVISION FOR INCOME TAXES

(57,076)

 

(62,614)

 

(8.8)

           

NET INCOME

$    102,953

 

$    116,237

 

(11.4)

Less: Earnings allocated to participating securities

$        3,659

 

$        4,651

 

(21.3)

Earnings available to diluted common shares

$      99,294

 

$    111,586

 

(11.0)

DILUTED EARNINGS PER SHARE

$          4.85

 

$          5.22

 

(7.1)

Weighted average dilutive common shares outstanding

20,480

 

21,364

 

(4.1)

Weighted average participating securities

767

 

895

 

(14.3)

Total weighted average shares outstanding

21,247

 

22,259

 

(4.5)

 

 

Group 1 Automotive, Inc.

Consolidated Balance Sheets

(Dollars in thousands)

             
   

September

30, 2017

 

December 31,

2016

 

% Increase/

 (Decrease)

 ASSETS: 

 

(Unaudited)

       

 CURRENT ASSETS: 

           

 Cash and cash equivalents 

 

$      66,883

 

$          20,992

 

218.6

 Contracts in transit and vehicle receivables, net 

 

288,200

 

269,508

 

6.9

 Accounts and notes receivable, net 

 

187,672

 

173,364

 

8.3

 Inventories, net 

 

1,651,789

 

1,651,815

 

(0.0)

 Prepaid expenses and other current assets 

 

38,111

 

34,908

 

9.2

 Total current assets 

 

2,232,655

 

2,150,587

 

3.8

 PROPERTY AND EQUIPMENT, net 

 

1,269,397

 

1,125,883

 

12.7

 GOODWILL AND INTANGIBLE FRANCHISE RIGHTS 

 

1,208,344

 

1,161,639

 

4.0

 OTHER ASSETS 

 

20,598

 

23,794

 

(13.4)

 Total assets 

 

$ 4,730,994

 

$     4,461,903

 

6.0

             

 LIABILITIES AND STOCKHOLDERS' EQUITY: 

           

 CURRENT LIABILITIES: 

           

 Floorplan notes payable - credit facility and other 

 

$ 1,077,287

 

$     1,136,654

 

(5.2)

 Offset account related to floorplan notes payable - credit facility 

 

(46,248)

 

(59,626)

 

(22.4)

 Floorplan notes payable - manufacturer affiliates 

 

399,804

 

392,661

 

1.8

 Offset account related to floorplan notes payable - manufacturer affiliates 

 

(22,000)

 

(25,500)

 

(13.7)

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

 

80,996

 

72,419

 

11.8

 Current liabilities from interest rate risk management activities 

 

823

 

3,941

 

(79.1)

 Accounts payable 

 

436,851

 

356,099

 

22.7

 Accrued expenses 

 

208,770

 

176,469

 

18.3

 Total current liabilities 

 

2,136,283

 

2,053,117

 

4.1

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

 

541,658

 

540,465

 

0.2

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

 

296,009

 

295,591

 

0.1

 ACQUISITION LINE 

 

33,508

 

 

100.0

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

 

373,466

 

333,326

 

12.0

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

 

48,048

 

43,427

 

10.6

 DEFERRED INCOME TAXES 

 

181,244

 

161,502

 

12.2

 LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES 

 

16,157

 

20,470

 

(21.1)

 OTHER LIABILITIES 

 

93,474

 

83,805

 

11.5

 STOCKHOLDERS' EQUITY: 

           

 Common stock 

 

255

 

257

 

(0.8)

 Additional paid-in capital 

 

288,970

 

290,899

 

(0.7)

 Retained earnings 

 

1,141,066

 

1,053,301

 

8.3

 Accumulated other comprehensive loss 

 

(126,415)

 

(146,944)

 

(14.0)

 Treasury stock 

 

(292,729)

 

(267,313)

 

9.5

 Total stockholders' equity 

 

$ 1,011,147

 

$        930,200

 

8.7

 Total liabilities and stockholders' equity 

 

$ 4,730,994

 

$     4,461,903

 

6.0

 

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

                   
     

Three Months Ended

 

Nine Months Ended

     

September 30,

 

September 30,

     

2017 (%)

 

2016 (%)

 

2017 (%)

 

2016 (%)

NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:

             

Region

Geographic Market

               

United States

Texas

 

37.8

 

36.2

 

36.5

 

36.4

 

California

 

7.0

 

9.4

 

7.6

 

9.3

 

Oklahoma

 

5.7

 

6.6

 

6.2

 

6.9

 

Massachusetts

 

4.8

 

5.0

 

4.7

 

4.9

 

Georgia

 

4.4

 

4.6

 

4.6

 

4.2

 

Florida

 

2.4

 

2.5

 

2.5

 

2.5

 

New Hampshire

 

1.9

 

2.0

 

2.0

 

1.9

 

Louisiana

 

1.9

 

2.2

 

2.0

 

2.1

 

New Jersey

 

1.7

 

1.7

 

1.7

 

1.6

 

Kansas

 

1.5

 

1.6

 

1.6

 

1.8

 

South Carolina

 

1.3

 

1.3

 

1.3

 

1.4

 

Mississippi

 

1.2

 

1.5

 

1.3

 

1.5

 

Alabama

 

0.9

 

1.0

 

1.0

 

0.9

 

Maryland

 

0.3

 

0.5

 

0.4

 

0.5

 

New Mexico 

 

0.1

 

 

 

     

72.9

 

76.1

 

73.4

 

75.9

                   

International

United Kingdom

 

22.6

 

18.6

 

21.8

 

18.2

 

Brazil

 

4.5

 

5.3

 

4.8

 

5.9

     

100.0

 

100.0

 

100.0

 

100.0

                   

NEW VEHICLE UNIT SALES BRAND MIX:

               

Toyota/Scion/Lexus

 

26.7

 

25.3

 

25.3

 

24.7

Volkswagen/Audi/Porsche

 

13.9

 

11.3

 

13.0

 

10.9

BMW/MINI

 

11.5

 

13.2

 

12.8

 

13.3

Ford/Lincoln

 

10.6

 

10.8

 

11.5

 

11.1

Honda/Acura

 

9.0

 

9.9

 

9.2

 

10.2

Nissan

 

7.0

 

7.0

 

7.5

 

7.0

Chevrolet/GMC/Buick/Cadillac

 

6.1

 

7.3

 

6.2

 

7.6

Hyundai/Kia

 

4.2

 

4.3

 

4.0

 

4.4

Chrysler/Dodge/Jeep/RAM

 

3.9

 

4.1

 

3.9

 

4.1

Mercedes-Benz/smart/Sprinter

 

3.4

 

4.2

 

3.8

 

4.1

Other

 

3.7

 

2.6

 

2.8

 

2.6

     

100.0

 

100.0

 

100.0

 

100.0

 

 

Group 1 Automotive, Inc.

Additional Information - U.S.

(Unaudited)

(Dollars in thousands, except per unit amounts)

             
   

Three Months Ended September 30,

   

2017

 

2016

 

% Increase/

 (Decrease)

REVENUES:

           

New vehicle retail sales

 

$ 1,296,267

 

$ 1,254,421

 

3.3

Used vehicle retail sales

 

562,031

 

575,551

 

(2.3)

Used vehicle wholesale sales

 

63,363

 

74,821

 

(15.3)

Total used

 

625,394

 

650,372

 

(3.8)

Parts and service

 

283,915

 

271,635

 

4.5

Finance, insurance and other, net

 

96,383

 

98,295

 

(1.9)

Total

 

$ 2,301,959

 

$ 2,274,723

 

1.2

             

GROSS MARGIN %:

           

New vehicle retail sales

 

5.1

 

4.9

   

Used vehicle retail sales

 

6.8

 

6.8

   

Used vehicle wholesale sales

 

(0.1)

 

(2.0)

   

Total used

 

6.1

 

5.8

   

Parts and service

 

53.8

 

54.8

   

Finance, insurance and other, net

 

100.0

 

100.0

   

Total

 

15.4

 

15.2

   
             

GROSS PROFIT:

           

New vehicle retail sales

 

$      66,622

 

$      61,886

 

7.7

Used vehicle retail sales

 

37,962

 

39,193

 

(3.1)

Used vehicle wholesale sales

 

(54)

 

(1,514)

 

96.4

Total used

 

37,908

 

37,679

 

0.6

Parts and service

 

152,654

 

148,866

 

2.5

Finance, insurance and other, net

 

96,383

 

98,295

 

(1.9)

Total 

 

$    353,567

 

$    346,726

 

2.0

             

UNITS SOLD:

           

Retail new vehicles sold

 

35,233

 

34,700

 

1.5

Retail used vehicles sold

 

26,304

 

27,201

 

(3.3)

Wholesale used vehicles sold

 

9,786

 

11,005

 

(11.1)

Total used

 

36,090

 

38,206

 

(5.5)

             

AVERAGE RETAIL SALES PRICE:

           

New vehicle retail

 

$      36,791

 

$      36,150

 

1.8

Used vehicle retail

 

$      21,367

 

$      21,159

 

1.0

             

GROSS PROFIT PER UNIT SOLD:

           

New vehicle retail sales

 

$        1,891

 

$        1,783

 

6.1

Used vehicle retail sales

 

1,443

 

1,441

 

0.1

Used vehicle wholesale sales

 

(6)

 

(138)

 

95.7

Total used

 

1,050

 

986

 

6.5

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

 

$        1,566

 

$        1,588

 

(1.4)

             

OTHER: 

           

Adjusted Finance, insurance and other revenue, net(1) (2)

 

$    102,933

 

$      98,295

 

4.7

Adjusted Total revenue (1)

 

$ 2,308,509

 

$ 2,274,723

 

1.5

Adjusted Total gross profit (1) 

 

$    360,117

 

$    346,726

 

3.9

Adjusted Total gross margin(1) 

 

15.6

 

15.2

   

Adjusted Finance, insurance and other, net (per retail unit) (1) 

 

$        1,673

 

$        1,588

 

5.4

SG&A expenses

 

$    261,787

 

$    246,501

 

6.2

Adjusted SG&A expenses (1)

 

$    252,120

 

$    247,227

 

2.0

SG&A as % revenues

 

11.4

 

10.8

   

Adjusted SG&A as % revenues (1)

 

11.0

 

10.9

   

SG&A as % gross profit

 

74.0

 

71.1

   

Adjusted SG&A as % gross profit (1)

 

70.0

 

71.3

   

Operating margin %

 

3.0

 

3.4

   

Adjusted operating margin % (1)

 

4.1

 

3.9

   

Pretax margin %

 

1.8

 

2.3

   

Adjusted pretax margin % (1)

 

2.9

 

2.8

   
             

INTEREST EXPENSE:

           

Floorplan interest expense

 

$    (12,014)

 

$      (9,979)

 

20.4

Floorplan assistance

 

13,295

 

12,824

 

3.7

Net floorplan income

 

$        1,281

 

$        2,845

 

(55.0)

Other interest expense, net

 

$    (16,727)

 

$    (15,710)

 

6.5

             
             
   

Nine Months Ended September 30,

   

2017

 

2016

 

% Increase/

 (Decrease)

REVENUES:

           

New vehicle retail sales

 

$ 3,458,287

 

$ 3,558,127

 

(2.8)

Used vehicle retail sales

 

1,620,171

 

1,709,595

 

(5.2)

Used vehicle wholesale sales

 

200,384

 

205,755

 

(2.6)

Total used

 

1,820,555

 

1,915,350

 

4.9

Parts and service

 

837,772

 

805,618

 

4.0

Finance, insurance and other, net

 

276,754

 

284,644

 

(2.8)

Total

 

$ 6,393,368

 

$ 6,563,739

 

(2.6)

             

GROSS MARGIN %:

           

New vehicle retail sales

 

5.1

 

5.0

   

Used vehicle retail sales

 

6.9

 

7.2

   

Used vehicle wholesale sales

 

(0.1)

 

(0.3)

   

Total used

 

6.2

 

6.4

   

Parts and service

 

53.8

 

54.6

   

Finance, insurance and other, net

 

100.0

 

100.0

   

Total

 

15.9

 

15.6

   
             

GROSS PROFIT:

           

New vehicle retail sales

 

$    174,831

 

$    177,674

 

(1.6)

Used vehicle retail sales

 

112,598

 

122,832

 

(8.3)

Used vehicle wholesale sales

 

(170)

 

(643)

 

73.6

Total used

 

112,428

 

122,189

 

(8.0)

Parts and service

 

450,623

 

43,956

 

2.5

Finance, insurance and other, net

 

276,754

 

284,644

 

(2.8)

Total 

 

$ 1,014,636

 

$ 1,024,033

 

(0.9)

             

UNITS SOLD:

           

Retail new vehicles sold

 

93,533

 

98,692

 

(5.2)

Retail used vehicles sold

 

76,435

 

80,888

 

(5.5)

Wholesale used vehicles sold

 

29,468

 

30,894

 

(4.6)

Total used

 

105,903

 

111,782

 

(5.3)

             

AVERAGE RETAIL SALES PRICE:

           

New vehicle retail

 

$      36,974

 

$      36,053

 

2.6

Used vehicle retail

 

$      21,197

 

$      21,135

 

0.3

             

GROSS PROFIT PER UNIT SOLD:

           

New vehicle retail sales

 

$        1,869

 

$        1,800

 

3.8

Used vehicle retail sales

 

1,473

 

1,519

 

(3.0)

Used vehicle wholesale sales

 

(6)

 

(21)

 

71.4

Total used

 

1,062

 

1,093

 

(2.8)

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

 

$        1,628

 

$        1,585

 

2.7

             

OTHER: 

           

Adjusted Finance, insurance and other revenue, net(1) (2)

 

$    283,304

 

$    284,644

 

(0.5)

Adjusted Total revenue (1)

 

$ 6,399,918

 

$ 6,563,739

 

(2.6)

Adjusted Total gross profit (1) 

 

$ 1,021,186

 

$ 1,024,033

 

(0.3)

Adjusted Total gross margin(1) 

 

16.0

 

15.6

   

Adjusted Finance, insurance and other, net (per retail unit) (1) 

 

$        1,667

 

$        1,585

 

5.2

SG&A expenses

 

$    741,904

 

$    737,730

 

0.6

Adjusted SG&A expenses (1)

 

$    733,427

 

$    733,683

 

0.0

SG&A as % revenues

 

11.6

 

11.2

   

Adjusted SG&A as % revenues (1)

 

11.5

 

11.2

   

SG&A as % gross profit

 

73.1

 

72.0

   

Adjusted SG&A as % gross profit (1)

 

71.8

 

71.6

   

Operating margin %

 

3.6

 

3.7

   

Adjusted operating margin % (1)

 

3.9

 

3.9

   

Pretax margin %

 

2.2

 

2.5

   

Adjusted pretax margin % (1)

 

2.6

 

2.8

   
             

INTEREST EXPENSE:

           

Floorplan interest expense

 

$    (34,954)

 

$    (30,428)

 

14.9

Floorplan assistance

 

35,031

 

36,176

 

(3.2)

Net floorplan income

 

$             77

 

$        5,748

 

98.7

Other interest expense, net

 

$    (49,571)

 

$    (46,581)

 

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.

(2)

Finance, insurance and other revenue represents fees earned for the financing of vehicle sales transactions and from the sale of insurance and vehicle service contracts. Such amounts are reported net of estimated amounts to be charged back in the future. As a result, finance, insurance and other revenue and gross
profit are the same.

 

 

Group 1 Automotive, Inc.

Additional Information - U.K.

(Unaudited)

(Dollars in thousands, except per unit amounts)

                 
   

Three Months Ended September 30,

   

2017

 

2016

 

% Increase/

(Decrease)

 

Constant Currency (1) 

% Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$       334,772

 

$       256,143

 

30.7

 

30.3

Used vehicle retail sales

 

158,076

 

106,856

 

47.9

 

48.3

Used vehicle wholesale sales

 

38,647

 

28,586

 

35.2

 

35.5

Total used

 

196,723

 

135,442

 

45.2

 

45.6

Parts and service

 

46,783

 

35,682

 

31.1

 

31.5

Finance, insurance and other, net

 

12,448

 

8,708

 

42.9

 

42.8

Total

 

$       590,726

 

$       435,975

 

35.5

 

35.4

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.1

 

5.5

       

Used vehicle retail sales

 

4.7

 

4.9

       

Used vehicle wholesale sales

 

(0.9)

 

(1.4)

       

Total used

 

3.6

 

3.6

       

Parts and service

 

57.3

 

55.7

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

10.8

 

10.9

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$         17,205

 

$         14,031

 

22.6

 

21.9

Used vehicle retail sales

 

7,471

 

5,265

 

41.9

 

42.3

Used vehicle wholesale sales

 

(347)

 

(404)

 

14.1

 

11.7

Total used

 

7,124

 

4,861

 

46.6

 

46.8

Parts and service

 

26,823

 

19,892

 

34.8

 

35.2

Finance, insurance and other, net

 

12,448

 

8,708

 

42.9

 

42.8

Total 

 

$         63,600

 

$         47,492

 

33.9

 

33.8

                 

UNITS SOLD:

               

Retail new vehicles sold

 

10,909

 

8,468

 

28.8

   

Retail used vehicles sold

 

7,011

 

4,800

 

46.1

   

Wholesale used vehicles sold

 

4,939

 

3,689

 

33.9

   

Total used

 

11,950

 

8,489

 

40.8

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$         30,688

 

$         30,248

 

1.5

 

1.2

Used vehicle retail

 

$         22,547

 

$         22,262

 

1.3

 

1.5

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$           1,577

 

$           1,657

 

(4.8)

 

(5.4)

Used vehicle retail sales

 

1,066

 

1,097

 

(2.8)

 

(2.6)

Used vehicle wholesale sales

 

(70)

 

(110)

 

36.4

 

34.1

Total used

 

596

 

573

 

4.0

 

4.3

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

 

$              695

 

$              656

 

5.9

 

5.7

                 

OTHER: 

               

SG&A expenses

 

$         53,395

 

$         39,609

 

34.8

 

35.2

SG&A as % revenues

 

9.0

 

9.1

       

SG&A as % gross profit

 

84.0

 

83.4

       

Operating margin %

 

1.3

 

1.4

       

Pretax margin %

 

0.9

 

0.9

       
                 

INTEREST EXPENSE:

               

Floorplan interest expense

 

$         (1,336)

 

$         (1,083)

 

23.4

 

23.5

Floorplan assistance

 

265

 

154

 

72.1

 

72.3

Net floorplan expense

 

$         (1,071)

 

$            (929)

 

15.3

 

15.4

Other interest expense, net

 

$         (1,121)

 

$         (1,299)

 

(13.7)

 

(13.6)

                 
                 
   

Nine Months Ended September 30,

   

2017

 

2016

 

% Increase/

 (Decrease)

 

Constant Currency (1) 

% Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$       824,827

 

$       764,707

 

7.9

 

17.1

Used vehicle retail sales

 

401,851

 

339,800

 

18.3

 

28.8

Used vehicle wholesale sales

 

99,604

 

93,985

 

6.0

 

15.6

Total used

 

501,455

 

433,785

 

15.6

 

26.0

Parts and service

 

120,614

 

110,180

 

9.5

 

19.2

Finance, insurance and other, net

 

31,260

 

26,991

 

15.8

 

25.8

Total 

 

$    1,478,156

 

$    1,335,663

 

10.7

 

20.3

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.5

 

5.7

       

Used vehicle retail sales

 

4.9

 

5.1

       

Used vehicle wholesale sales

 

(0.9)

 

0.1

       

Total used

 

3.7

 

4.0

       

Parts and service

 

57.6

 

55.2

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

11.2

 

11.1

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$         45,350

 

$         43,347

 

4.6

 

13.6

Used vehicle retail sales

 

19,579

 

17,329

 

13.0

 

23.3

Used vehicle wholesale sales

 

(851)

 

54

 

(1,675.9)

 

(5,004.1)

Total used

 

18,728

 

17,383

 

7.7

 

7.6

Parts and service

 

69,488

 

60,845

 

14.2

 

24.3

Finance, insurance and other, net

 

31,260

 

26,991

 

15.8

 

25.8

Total 

 

$       164,826

 

$       148,566

 

10.9

 

20.7

                 

UNITS SOLD:

               

Retail new vehicles sold

 

27,821

 

23,694

 

17.4

   

Retail used vehicles sold

 

18,435

 

14,401

 

28.0

   

Wholesale used vehicles sold

 

13,245

 

11,328

 

16.9

   

Total used

 

31,680

 

25,729

 

23.1

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$         29,648

 

$         32,274

 

(8.1)

 

(0.3)

Used vehicle retail

 

$         21,798

 

$         23,596

 

(7.6)

 

0.6

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$           1,630

 

$           1,829

 

(10.9)

 

(3.3)

Used vehicle retail sales

 

1,062

 

1,203

 

(11.7)

 

(3.7)

Used vehicle wholesale sales

 

(64)

 

5

 

(1,380.0)

 

(4,294.3)

Total used

 

591

 

676

 

(12.6)

 

(12.6)

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

 

$              676

 

$              709

 

(4.7)

 

3.6

                 

OTHER: 

               

SG&A expenses

 

$       137,475

 

$       119,154

 

15.4

 

25.5

Adjusted SG&A expenses(1)

 

$       137,187

 

$       118,593

 

15.7

 

25.9

SG&A as % revenues

 

9.3

 

8.9

       

Adjusted SG&A as % revenues (1)

 

9.3

 

8.9

       

SG&A as % gross profit

 

83.4

 

80.2

       

Adjusted SG&A as % gross profit (1)

 

83.2

 

79.8

       

Operating margin %

 

1.5

 

1.8

       

Adjusted operating margin % (1)

 

1.5

 

1.9

       

Pretax margin %

 

1.1

 

1.3

       

Adjusted pretax margin % (1)

 

1.1

 

1.3

       
                 

INTEREST EXPENSE:

               

Floorplan interest expense

 

$         (3,423)

 

$         (3,137)

 

9.1

 

18.5

Floorplan assistance

 

714

 

643

 

11.0

 

22.1

Net floorplan expense

 

$         (2,709)

 

$         (2,494)

 

8.6

 

17.6

Other interest expense, net

 

$         (2,386)

 

$         (3,966)

 

(39.8)

 

(34.7)

   

(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 - Brazil

(Unaudited)

(Dollars in thousands, except per unit amounts)

                 
   

Three Months Ended September 30,

   

2017

 

2016

 

% Increase/
(Decrease)

 

Constant Currency (1) 

 % Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$   79,202

 

$   77,388

 

2.3

 

(0.2)

Used vehicle retail sales

 

22,931

 

20,213

 

13.4

 

10.6

Used vehicle wholesale sales

 

2,817

 

811

 

247.3

 

239.0

Total used

 

25,748

 

21,024

 

22.5

 

19.4

Parts and service

 

12,495

 

12,359

 

1.1

 

(1.4)

Finance, insurance and other, net

 

2,162

 

1,707

 

26.7

 

23.5

Total

 

$ 119,607

 

$ 112,478

 

6.3

 

3.7

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.7

 

5.8

       

Used vehicle retail sales

 

7.4

 

7.5

       

Used vehicle wholesale sales

 

7.7

 

7.3

       

Total used

 

7.4

 

7.5

       

Parts and service

 

45.5

 

37.7

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

11.9

 

11.1

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$     4,505

 

$     4,518

 

(0.3)

 

(2.7)

Used vehicle retail sales

 

1,690

 

1,510

 

11.9

 

9.2

Used vehicle wholesale sales

 

216

 

59

 

266.1

 

258.5

Total used

 

1,906

 

1,569

 

21.5

 

18.6

Parts and service

 

5,680

 

4,656

 

22.0

 

19.0

Finance, insurance and other, net

 

2,162

 

1,707

 

26.7

 

23.5

Total 

 

$   14,253

 

$   12,450

 

14.5

 

11.7

                 

UNITS SOLD:

               

Retail new vehicles sold

 

2,179

 

2,429

 

(10.3)

   

Retail used vehicles sold

 

1,034

 

1,011

 

2.3

   

Wholesale used vehicles sold

 

242

 

333

 

(27.3)

   

Total used

 

1,276

 

1,344

 

(5.1)

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$   36,348

 

$   31,860

 

14.1

 

11.3

Used vehicle retail

 

$   22,177

 

$   19,993

 

10.9

 

8.2

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$     2,067

 

$     1,860

 

11.1

 

8.5

Used vehicle retail sales

 

1,634

 

1,494

 

9.4

 

6.8

Used vehicle wholesale sales

 

893

 

177

 

404.5

 

393.3

Total used

 

1,494

 

1,167

 

28.0

 

24.9

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

 

$        673

 

$        496

 

35.7

 

32.2

                 

OTHER: 

               

SG&A expenses

 

$   13,145

 

$   12,896

 

1.9

 

(0.6)

Adjusted SG&A expenses(1)

 

$   13,145

 

$   12,622

 

4.1

 

1.6

SG&A as % revenues

 

11.0

 

11.5

       

Adjusted SG&A as % revenues (1)

 

11.0

 

11.2

       

SG&A as % gross profit

 

92.2

 

103.6

       

Adjusted SG&A as % gross profit (1)

 

92.2

 

101.4

       

Operating margin %

 

0.6

 

(0.6)

       

Adjusted operating margin % (1)

 

0.6

 

(0.4)

       

Pretax margin %

 

0.5

 

(0.8)

       

Adjusted pretax margin % (1)

 

0.5

 

(0.5)

       
                 

INTEREST EXPENSE:

               

Floorplan interest expense

 

$      (141)

 

$        (73)

 

93.2

 

90.9

Floorplan assistance

 

 

 

-

 

-

Net floorplan expense

 

$      (141)

 

$        (73)

 

93.2

 

90.9

Other interest expense, net

 

$        (26)

 

$        (85)

 

(69.4)

 

(68.7)

                 
                 
   

Nine Months Ended September 30,

   

2017

 

2016

 

% Increase/

(Decrease)

 

Constant Currency (1)
% Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$ 213,108

 

$ 215,728

 

(1.2)

 

(11.0)

Used vehicle retail sales

 

67,892

 

57,174

 

18.7

 

6.3

Used vehicle wholesale sales

 

8,373

 

2,349

 

256.4

 

220.7

Total used

 

76,265

 

59,523

 

28.1

 

14.8

Parts and service

 

36,136

 

34,543

 

4.6

 

(5.9)

Finance, insurance and other, net

 

6,283

 

4,784

 

31.3

 

18.3

Total 

 

$ 331,792

 

$ 314,578

 

5.5

 

(5.1)

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.8

 

5.7

       

Used vehicle retail sales

 

7.2

 

5.7

       

Used vehicle wholesale sales

 

8.0

 

5.4

       

Total used

 

7.3

 

5.7

       

Parts and service

 

45.0

 

37.1

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

12.2

 

10.6

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$   12,289

 

$   12,289

 

0.0

 

(10.0)

Used vehicle retail sales

 

4,864

 

3,272

 

48.7

 

36.8

Used vehicle wholesale sales

 

669

 

127

 

426.8

 

378.4

Total used

 

5,533

 

3,399

 

62.8

 

49.6

Parts and service

 

16,267

 

12,817

 

26.9

 

14.0

Finance, insurance and other, net

 

6,283

 

4,784

 

31.3

 

18.3

Total 

 

$   40,372

 

$   33,289

 

21.3

 

9.3

                 

UNITS SOLD:

               

Retail new vehicles sold

 

6,133

 

7,636

 

(19.7)

   

Retail used vehicles sold

 

3,048

 

3,465

 

(12.0)

   

Wholesale used vehicles sold

 

858

 

855

 

0.4

   

Total used

 

3,906

 

4,320

 

(9.6)

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$   34,748

 

$   28,251

 

23.0

 

10.9

Used vehicle retail

 

$   22,274

 

$   16,500

 

35.0

 

20.8

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$     2,004

 

$     1,609

 

24.5

 

12.0

Used vehicle retail sales

 

1,596

 

944

 

69.1

 

55.5

Used vehicle wholesale sales

 

780

 

149

 

423.5

 

376.7

Total used

 

1,417

 

787

 

80.1

 

65.4

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

 

$        684

 

$        431

 

58.7

 

43.1

                 

OTHER: 

               

SG&A expenses

 

$   37,295

 

$   34,808

 

7.1

 

(3.6)

Adjusted SG&A expenses(1)

 

$   37,295

 

$   34,162

 

9.2

 

(1.7)

SG&A as % revenues

 

11.2

 

11.1

       

Adjusted SG&A as % revenues (1)

 

11.2

 

10.9

       

SG&A as % gross profit

 

92.4

 

104.6

       

Adjusted SG&A as % gross profit (1)

 

92.4

 

102.6

       

Operating margin %

 

0.6

 

(0.9)

       

Adjusted operating margin % (1)

 

0.6

 

(0.5)

       

Pretax margin %

 

0.4

 

(1.0)

       

Adjusted pretax margin % (1)

 

0.4

 

(0.7)

       
                 

INTEREST EXPENSE:

               

Floorplan interest expense

 

$      (282)

 

$      (172)

 

64.0

 

50.0

Floorplan assistance

 

 

 

-

 

-

Net floorplan expense

 

$      (282)

 

$      (172)

 

64.0

 

50.0

Other interest expense, net

 

$      (231)

 

$      (182)

 

26.9

 

8.7

                   

(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 - Consolidated

(Unaudited)

(Dollars in thousands, except per unit amounts)

                 
   

Three Months Ended September 30,

   

2017

 

2016

 

% Increase/

 (Decrease)

 

Constant Currency % (1)

Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$ 1,710,241

 

$ 1,587,952

 

7.7

 

7.5

Used vehicle retail sales

 

743,038

 

702,620

 

5.8

 

5.7

Used vehicle wholesale sales

 

104,827

 

104,218

 

0.6

 

0.6

Total used

 

847,865

 

806,838

 

5.1

 

5.1

Parts and service

 

343,193

 

319,676

 

7.4

 

7.3

Finance, insurance and other, net

 

110,993

 

108,710

 

2.1

 

2.0

Total

 

$ 3,012,292

 

$ 2,823,176

 

6.7

 

6.6

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.2

 

5.1

       

Used vehicle retail sales

 

6.3

 

6.5

       

Used vehicle wholesale sales

 

(0.2)

 

(1.8)

       

Total used

 

5.5

 

5.5

       

Parts and service

 

54.0

 

54.2

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

14.3

 

14.4

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$      88,332

 

$      80,435

 

9.8

 

9.6

Used vehicle retail sales

 

47,123

 

45,968

 

2.5

 

2.5

Used vehicle wholesale sales

 

(185)

 

(1,859)

 

90.0

 

89.3

Total used

 

46,938

 

44,109

 

6.4

 

6.3

Parts and service

 

185,157

 

173,414

 

6.8

 

6.7

Finance, insurance and other, net

 

110,993

 

108,710

 

2.1

 

2.0

Total 

 

$    431,420

 

$    406,668

 

6.1

 

6.0

                 

UNITS SOLD:

               

Retail new vehicles sold

 

48,321

 

45,597

 

6.0

   

Retail used vehicles sold

 

34,349

 

33,012

 

4.1

   

Wholesale used vehicles sold

 

14,967

 

15,027

 

(0.4)

   

Total used

 

49,316

 

48,039

 

2.7

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$      35,393

 

$      34,826

 

1.6

 

1.5

Used vehicle retail

 

$      21,632

 

$      21,284

 

1.6

 

1.6

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$        1,828

 

$        1,764

 

3.6

 

3.4

Used vehicle retail sales

 

1,372

 

1,392

 

(1.4)

 

(1.5)

Used vehicle wholesale sales

 

(12)

 

(124)

 

90.3

 

89.2

Total used

 

952

 

918

 

3.7

 

3.6

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

 

$        1,343

 

$        1,383

 

(2.9)

 

(3.0)

                 

OTHER: 

               

Adjusted Finance, insurance and other revenue, net(1) (2)

 

$    117,543

 

$    108,710

 

8.1

 

8.1

Adjusted Total revenue (1)

 

$ 3,018,842

 

$ 2,823,176

 

6.9

 

6.8

Adjusted Total gross profit (1) 

 

$    437,970

 

$    406,668

 

7.7

 

7.6

Adjusted Total gross margin(1) 

 

14.5

 

14.4

       

Adjusted Finance, insurance and other, net (per retail unit) (1) 

 

$        1,422

 

$        1,383

 

2.8

 

2.8

SG&A expenses

 

$    328,327

 

$    299,006

 

9.8

 

9.7

Adjusted SG&A expenses (1)

 

$    318,660

 

$    299,458

 

6.4

 

6.4

SG&A as % revenues

 

10.9

 

10.6

       

Adjusted SG&A as % revenues (1)

 

10.6

 

10.6

       

SG&A as % gross profit

 

76.1

 

73.5

       

Adjusted SG&A as % gross profit (1)

 

72.8

 

73.6

       

Operating margin %

 

2.6

 

3.0

       

Adjusted operating margin % (1)

 

3.5

 

3.3

       

Pretax margin %

 

1.6

 

2.0

       

Adjusted pretax margin % (1)

 

2.4

 

2.3

       
                 

INTEREST EXPENSE:

               

Floorplan interest expense

 

$    (13,491)

 

$    (11,135)

 

21.2

 

21.2

Floorplan assistance

 

13,561

 

12,979

 

4.5

 

4.5

Net floorplan income

 

$             70

 

$        1,844

 

(96.2)

 

(96.1)

Other interest expense, net

 

$    (17,874)

 

$    (17,094)

 

4.6

 

4.6

                 
                 
   

Three Months Ended September 30,

   

2017

 

2016

 

% Increase/

(Decrease)

 

Constant Currency % (1)

Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$ 4,496,222

 

$ 4,538,562

 

(0.9)

 

0.2

Used vehicle retail sales

 

2,089,914

 

2,106,569

 

(0.8)

 

0.6

Used vehicle wholesale sales

 

308,361

 

302,089

 

2.1

 

4.8

Total used

 

2,398,275

 

2,408,658

 

(0.4)

 

1.1

Parts and service

 

994,522

 

950,341

 

4.6

 

5.4

Finance, insurance and other, net

 

314,297

 

316,419

 

(0.7)

 

(0.0)

Total

 

$ 8,203,316

 

$ 8,213,980

 

(0.1)

 

1.0

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.2

 

5.1

       

Used vehicle retail sales

 

6.6

 

6.8

       

Used vehicle wholesale sales

 

(0.1)

 

(0.2)

       

Total used

 

5.7

 

5.9

       

Parts and service

 

53.9

 

54.0

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

14.9

 

14.7

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$    232,470

 

$    233,310

 

(0.4)

 

0.8

Used vehicle retail sales

 

137,041

 

143,433

 

(4.5)

 

(3.5)

Used vehicle wholesale sales

 

(352)

 

(462)

 

23.8

 

(381.7)

Total used

 

136,689

 

142,971

 

(4.4)

 

(4.7)

Parts and service

 

536,378

 

513,188

 

4.5

 

5.4

Finance, insurance and other, net

 

314,297

 

316,419

 

(0.7)

 

(0.0)

Total 

 

$ 1,219,834

 

$ 1,205,888

 

1.2

 

2.0

                 

UNITS SOLD:

               

Retail new vehicles sold

 

127,487

 

130,022

 

(1.9)

   

Retail used vehicles sold

 

97,918

 

98,754

 

(0.8)

   

Wholesale used vehicles sold

 

43,571

 

43,077

 

1.1

   

Total used

 

141,489

 

141,831

 

(0.2)

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$      35,268

 

$      34,906

 

1.0

 

2.1

Used vehicle retail

 

$      21,344

 

$      21,331

 

0.1

 

1.4

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$        1,823

 

$        1,794

 

1.6

 

2.8

Used vehicle retail sales

 

1,400

 

1,452

 

(3.6)

 

(2.7)

Used vehicle wholesale sales

 

(8)

 

(11)

 

27.3

 

(376.2)

Total used

 

966

 

1,008

 

(4.2)

 

(4.5)

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

 

$        1,394

 

$        1,383

 

0.8

 

1.5

                 

OTHER: 

               

Adjusted Finance, insurance and other revenue, net(1) (2)

 

$    320,847

 

$    316,419

 

1.4

 

2.1

Adjusted Total revenue (1)

 

$ 8,209,866

 

$ 8,213,980

 

(0.1)

 

1.1

Adjusted Total gross profit (1) 

 

$ 1,226,384

 

$ 1,205,888

 

1.7

 

2.4

Adjusted Total gross margin(1) 

 

14.9

 

14.7

       

Adjusted Finance, insurance and other, net (per retail unit) (1) 

 

$        1,423

 

$        1,383

 

2.9

 

3.6

SG&A expenses

 

$    916,674

 

$    891,692

 

2.8

 

3.7

Adjusted SG&A expenses (1)

 

$    907,909

 

$    886,439

 

2.4

 

3.4

SG&A as % revenues

 

11.2

 

10.9

       

Adjusted SG&A as % revenues (1)

 

11.1

 

10.8

       

SG&A as % gross profit

 

75.1

 

73.9

       

Adjusted SG&A as % gross profit (1)

 

74.0

 

73.5

       

Operating margin %

 

3.1

 

3.2

       

Adjusted operating margin % (1)

 

3.4

 

3.4

       

Pretax margin %

 

2.0

 

2.2

       

Adjusted pretax margin % (1)

 

2.3

 

2.4

       
                 

INTEREST EXPENSE:

               

Floorplan interest expense

 

$    (38,659)

 

$    (33,737)

 

14.6

 

15.4

Floorplan assistance

 

35,745

 

36,818

 

(2.9)

 

(2.7)

Net floorplan income

 

$      (2,914)

 

$        3,081

 

(194.6)

 

(201.1)

Other interest expense, net

 

$    (52,188)

 

$    (50,729)

 

2.9

 

3.2

                   

(1)

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

(2)

Finance, insurance and other revenue represents fees earned for the financing of vehicle sales transactions and from the sale of insurance and vehicle service contracts. Such amounts are reported net of estimated amounts to be charged back in the future. As a result, finance, insurance and other revenue and gross
profit are the same.

 

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)

             
   

Three Months Ended September 30,

   

2017

 

2016

 

% Increase/

 (Decrease)

REVENUES:

           

New vehicle retail sales

 

$ 1,283,050

 

$ 1,238,239

 

3.6

Used vehicle retail sales

 

557,657

 

568,306

 

(1.9)

Used vehicle wholesale sales

 

62,552

 

74,020

 

(15.5)

Total used

 

620,209

 

642,326

 

(3.4)

Parts and service

 

281,735

 

269,072

 

4.7

Finance, insurance and other, net

 

95,195

 

96,685

 

(1.5)

Total 

 

$ 2,280,189

 

$ 2,246,322

 

1.5

             

GROSS MARGIN %:

           

New vehicle retail sales

 

5.1

 

4.9

   

Used vehicle retail sales

 

6.7

 

6.8

   

Used vehicle wholesale sales

 

(0.2)

 

(2.0)

   

Total used

 

6.0

 

5.8

   

Parts and service

 

53.8

 

54.7

   

Finance, insurance and other, net

 

100.0

 

100.0

   

Total

 

15.3

 

15.3

   
             

GROSS PROFIT:

           

New vehicle retail sales

 

$      65,712

 

$      61,270

 

7.2

Used vehicle retail sales

 

37,638

 

38,909

 

(3.3)

Used vehicle wholesale sales

 

(138)

 

(1,477)

 

90.7

Total used

 

37,500

 

37,432

 

0.2

Parts and service

 

151,481

 

147,215

 

2.9

Finance, insurance and other, net

 

95,195

 

96,685

 

(1.5)

Total 

 

$    349,888

 

$    342,602

 

2.1

             

UNITS SOLD:

           

Retail new vehicles sold

 

34,917

 

34,080

 

2.5

Retail used vehicles sold

 

26,093

 

26,800

 

(2.6)

Wholesale used vehicles sold

 

9,672

 

10,832

 

(10.7)

Total used

 

35,765

 

37,632

 

(5.0)

             

AVERAGE RETAIL SALES PRICE:

           

New vehicle retail

 

$      36,746

 

$      36,333

 

1.1

Used vehicle retail

 

$      21,372

 

$      21,205

 

0.8

             

GROSS PROFIT PER UNIT SOLD:

           

New vehicle retail sales

 

$        1,882

 

$        1,798

 

4.7

Used vehicle retail sales

 

1,442

 

1,452

 

(0.7)

Used vehicle wholesale sales

 

(14)

 

(136)

 

89.7

Total used

 

1,049

 

995

 

5.4

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

 

$        1,560

 

$        1,588

 

(1.8)

             

OTHER: 

           

Adjusted Finance, insurance and other revenue, net(2) (3)

 

$    101,745

 

$      96,685

 

5.2

Adjusted Total revenue (2)

 

$ 2,286,739

 

$ 2,246,322

 

1.8

Adjusted Total gross profit (2) 

 

$    356,438

 

$    342,602

 

4.0

Adjusted Total gross margin (2) 

 

15.6

 

15.3

   

Adjusted Finance, insurance and other, net (per retail unit) (2) 

 

$        1,668

 

$        1,588

 

5.0

SG&A expenses

 

$    258,862

 

$    243,151

 

6.5

Adjusted SG&A expenses (2)

 

$    249,195

 

$    242,701

 

2.7

SG&A as % revenues

 

11.4

 

10.8

   

Adjusted SG&A as % revenues (2)

 

10.9

 

10.8

   

SG&A as % gross profit

 

74.0

 

71.0

   

Adjusted SG&A as % gross profit (2)

 

69.9

 

70.8

   

Operating margin %

 

3.0

 

3.5

   

Adjusted operating margin % (2)

 

4.2

 

4.0

   
             
             
   

Nine Months Ended September 30,

   

2017

 

2016

 

% Increase/
(Decrease)

REVENUES:

           

New vehicle retail sales

 

$ 3,441,300

 

$ 3,505,583

 

(1.8)

Used vehicle retail sales

 

1,614,613

 

1,684,837

 

(4.2)

Used vehicle wholesale sales

 

199,320

 

202,003

 

(1.3)

Total used

 

1,813,933

 

1,886,840

 

(3.9)

Parts and service

 

835,188

 

796,455

 

4.9

Finance, insurance and other, net

 

274,464

 

279,919

 

(1.9)

Total 

 

$ 6,364,885

 

$ 6,468,797

 

(1.6)

             

GROSS MARGIN %:

           

New vehicle retail sales

 

5.1

 

5.0

   

Used vehicle retail sales

 

7.0

 

7.2

   

Used vehicle wholesale sales

 

(0.1)

 

(0.1)

   

Total used

 

6.2

 

6.4

   

Parts and service

 

53.8

 

54.5

   

Finance, insurance and other, net

 

100.0

 

100.0

   

Total

 

15.9

 

15.6

   
             

GROSS PROFIT:

           

New vehicle retail sales

 

$    173,908

 

$    175,554

 

(0.9)

Used vehicle retail sales

 

112,216

 

121,040

 

(7.3)

Used vehicle wholesale sales

 

(232)

 

(213)

 

(8.9)

Total used

 

111,984

 

120,827

 

(7.3)

Parts and service

 

449,262

 

433,879

 

3.5

Finance, insurance and other, net

 

274,464

 

279,919

 

(1.9)

Total 

 

$ 1,009,618

 

$ 1,010,179

 

(0.1)

             

UNITS SOLD:

           

Retail new vehicles sold

 

93,090

 

96,676

 

(3.7)

Retail used vehicles sold

 

76,156

 

79,587

 

(4.3)

Wholesale used vehicles sold

 

29,315

 

30,271

 

(3.2)

Total used

 

105,471

 

109,858

 

(4.0)

             

AVERAGE RETAIL SALES PRICE:

           

New vehicle retail

 

$      36,967

 

$      36,261

 

1.9

Used vehicle retail

 

$      21,201

 

$      21,170

 

0.1

             

GROSS PROFIT PER UNIT SOLD:

           

New vehicle retail sales

 

$        1,868

 

$        1,816

 

2.9

Used vehicle retail sales

 

1,474

 

1,521

 

(3.1)

Used vehicle wholesale sales

 

(8)

 

(7)

 

(14.3)

Total used

 

1,062

 

1,100

 

(3.5)

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

 

$        1,622

 

$        1,588

 

2.1

             

OTHER: 

           

Adjusted Finance, insurance and other revenue, net(2) (3)

 

$    281,014

 

$    279,919

 

0.4

Adjusted Total revenue (2)

 

$ 6,371,435

 

$ 6,468,797

 

(1.5)

Adjusted Total gross profit (2) 

 

$ 1,016,168

 

$ 1,010,179

 

0.6

Adjusted Total gross margin (2) 

 

15.9

 

15.6

   

Adjusted Finance, insurance and other, net (per retail unit) (2) 

 

$        1,660

 

$        1,588

 

4.5

SG&A expenses

 

$    737,548

 

$    726,162

 

1.7

Adjusted SG&A expenses (2)

 

$    729,071

 

$    718,875

 

1.4

SG&A as % revenues

 

11.6

 

11.2

   

Adjusted SG&A as % revenues (2)

 

11.5

 

11.1

   

SG&A as % gross profit

 

73.1

 

71.8

   

Adjusted SG&A as % gross profit (2)

 

71.7

 

71.2

   

Operating margin %

 

3.6

 

3.7

   

Adjusted operating margin % (2)

 

4.0

 

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.

(3)

Finance, insurance and other revenue represents fees earned for the financing of vehicle sales transactions and from the sale of insurance and vehicle service contracts. Such amounts are reported net of estimated amounts to be charged back in the future. As a result, finance, insurance and other revenue and gross profits are the same.

 

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)

                 
   

Three Months Ended September 30,

   

2017

 

2016

 

% Increase/

(Decrease)

 

Constant Currency (2)

% Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$    270,750

 

$    254,246

 

6.5

 

6.2

Used vehicle retail sales

 

120,723

 

104,692

 

15.3

 

15.6

Used vehicle wholesale sales

 

30,565

 

27,891

 

9.6

 

9.8

Total used

 

151,288

 

132,583

 

14.1

 

14.4

Parts and service

 

37,360

 

35,360

 

5.7

 

6.0

Finance, insurance and other, net

 

9,487

 

8,634

 

9.9

 

9.8

Total 

 

$    468,885

 

$    430,823

 

8.8

 

8.8

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.2

 

5.5

       

Used vehicle retail sales

 

4.9

 

4.8

       

Used vehicle wholesale sales

 

(1.1)

 

(1.5)

       

Total used

 

3.7

 

3.5

       

Parts and service

 

58.1

 

55.7

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

10.9

 

10.9

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$      14,065

 

$      13,919

 

1.0

 

0.5

Used vehicle retail sales

 

5,970

 

5,034

 

18.6

 

19.0

Used vehicle wholesale sales

 

(332)

 

(409)

 

18.8

 

17.3

Total used

 

5,638

 

4,625

 

21.9

 

22.2

Parts and service

 

21,710

 

19,683

 

10.3

 

10.6

Finance, insurance and other, net

 

9,487

 

8,634

 

9.9

 

9.8

Total 

 

$      50,900

 

$      46,861

 

8.6

 

8.6

                 

UNITS SOLD:

               

Retail new vehicles sold

 

8,573

 

8,331

 

2.9

   

Retail used vehicles sold

 

5,094

 

4,643

 

9.7

   

Wholesale used vehicles sold

 

3,795

 

3,563

 

6.5

   

Total used

 

8,889

 

8,206

 

8.3

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$      31,582

 

$      30,518

 

3.5

 

3.2

Used vehicle retail

 

$      23,699

 

$      22,548

 

5.1

 

5.4

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$        1,641

 

$        1,671

 

(1.8)

 

(2.3)

Used vehicle retail sales

 

1,172

 

1,084

 

8.1

 

8.5

Used vehicle wholesale sales

 

(87)

 

(115)

 

24.3

 

22.3

Total used

 

634

 

564

 

12.4

 

12.8

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

 

$           694

 

$           665

 

4.4

 

4.2

                 

OTHER: 

               

SG&A expenses

 

$      41,538

 

$      38,836

 

7.0

 

7.2

SG&A as % revenues

 

8.9

 

9.0

       

SG&A as % gross profit

 

81.6

 

82.9

       

Operating margin %

 

1.6

 

1.5

       
                 
   

Nine Months Ended September 30,

   

2017

 

2016

 

% Increase/
(Decrease)

 

Constant Currency (2)

% Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$    719,059

 

$    746,389

 

(3.7)

 

4.6

Used vehicle retail sales

 

336,591

 

326,141

 

3.2

 

12.4

Used vehicle wholesale sales

 

84,564

 

89,360

 

(5.4)

 

3.1

Total used

 

421,155

 

415,501

 

1.4

 

10.4

Parts and service

 

101,479

 

105,032

 

(3.4)

 

5.1

Finance, insurance and other, net

 

26,498

 

26,338

 

0.6

 

9.4

Total 

 

$ 1,268,191

 

$ 1,293,260

 

(1.9)

 

6.6

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.6

 

5.7

       

Used vehicle retail sales

 

5.1

 

5.2

       

Used vehicle wholesale sales

 

(0.6)

 

0.1

       

Total used

 

3.9

 

4.1

       

Parts and service

 

57.6

 

55.1

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

11.2

 

11.1

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$      40,190

 

$      42,704

 

(5.9)

 

2.2

Used vehicle retail sales

 

17,047

 

16,926

 

0.7

 

10.1

Used vehicle wholesale sales

 

(494)

 

92

 

(637.0)

 

(1,035.6)

Total used

 

16,553

 

17,018

 

(2.7)

 

4.4

Parts and service

 

58,473

 

57,903

 

1.0

 

9.7

Finance, insurance and other, net

 

26,498

 

26,338

 

0.6

 

9.4

Total 

 

$    141,714

 

$    143,963

 

(1.6)

 

7.1

                 

UNITS SOLD:

               

Retail new vehicles sold

 

23,853

 

22,956

 

3.9

   

Retail used vehicles sold

 

15,015

 

13,718

 

9.5

   

Wholesale used vehicles sold

 

11,039

 

10,803

 

2.2

   

Total used

 

26,054

 

24,521

 

6.3

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$      30,145

 

$      32,514

 

(7.3)

 

0.7

Used vehicle retail

 

$      22,417

 

$      23,775

 

(5.7)

 

2.7

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$        1,685

 

$        1,860

 

(9.4)

 

(1.6)

Used vehicle retail sales

 

1,135

 

1,234

 

(8.0)

 

0.6

Used vehicle wholesale sales

 

(45)

 

9

 

(600.0)

 

(1,015.6)

Total used

 

635

 

694

 

(8.5)

 

(1.7)

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

 

$           682

 

$           718

 

(5.0)

 

3.2

                 

OTHER: 

               

SG&A expenses

 

$    113,338

 

$    112,159

 

1.1

 

9.8

Adjusted SG&A expenses(2)

 

$    113,050

 

$    111,598

 

1.3

 

10.1

SG&A as % revenues

 

8.9

 

8.7

       

Adjusted SG&A as % revenues (2)

 

8.9

 

8.6

       

SG&A as % gross profit

 

80.0

 

77.9

       

Adjusted SG&A as % gross profit (2)

 

79.8

 

77.5

       

Operating margin %

 

1.9

 

2.1

       

Adjusted operating margin % (2)

 

1.9

 

2.1

       
                   

(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 September 30,

   

2017

 

2016

 

% Increase/
(Decrease)

 

Constant Currency (2)
% Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$   78,689

 

$   72,086

 

9.2

 

6.5

Used vehicle retail sales

 

22,846

 

18,717

 

22.1

 

19.0

Used vehicle wholesale sales

 

2,818

 

811

 

247.5

 

239.0

Total used

 

25,664

 

19,528

 

31.4

 

28.1

Parts and service

 

12,445

 

11,138

 

11.7

 

9.0

Finance, insurance and other, net

 

2,157

 

1,595

 

35.2

 

31.9

Total 

 

$ 118,955

 

$ 104,347

 

14.0

 

11.2

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.7

 

5.8

       

Used vehicle retail sales

 

7.4

 

7.7

       

Used vehicle wholesale sales

 

7.7

 

7.3

       

Total used

 

7.4

 

7.6

       

Parts and service

 

45.5

 

38.8

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

11.9

 

11.1

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$     4,464

 

$     4,182

 

6.7

 

4.2

Used vehicle retail sales

 

1,689

 

1,433

 

17.9

 

14.9

Used vehicle wholesale sales

 

216

 

59

 

266.1

 

258.5

Total used

 

1,905

 

1,492

 

27.7

 

24.5

Parts and service

 

5,665

 

4,327

 

30.9

 

27.8

Finance, insurance and other, net

 

2,157

 

1,595

 

35.2

 

31.9

Total 

 

$   14,191

 

$   11,596

 

22.4

 

19.4

                 

UNITS SOLD:

               

Retail new vehicles sold

 

2,155

 

2,152

 

0.1

   

Retail used vehicles sold

 

1,028

 

922

 

11.5

   

Wholesale used vehicles sold

 

242

 

283

 

(14.5)

   

Total used

 

1,270

 

1,205

 

5.4

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$   36,515

 

$   33,497

 

9.0

 

6.3

Used vehicle retail

 

$   22,224

 

$   20,300

 

9.5

 

6.7

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$     2,071

 

$     1,943

 

6.6

 

4.0

Used vehicle retail sales

 

1,643

 

1,554

 

5.7

 

3.1

Used vehicle wholesale sales

 

893

 

208

 

329.3

 

319.2

Total used

 

1,500

 

1,238

 

21.2

 

18.2

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

 

$        678

 

$        519

 

30.6

 

27.4

                 

OTHER: 

               

SG&A expenses

 

$   12,746

 

$   11,762

 

8.4

 

5.7

Adjusted SG&A expenses(2)

 

$   12,746

 

$   11,488

 

11.0

 

8.2

SG&A as % revenues

 

10.7

 

11.3

       

Adjusted SG&A as % revenues (2)

 

10.7

 

11.0

       

SG&A as % gross profit

 

89.8

 

101.4

       

Adjusted SG&A as % gross profit (2)

 

89.8

 

99.1

       

Operating margin %

 

0.9

 

(0.4)

       

Adjusted operating margin % (2)

 

0.9

 

(0.1)

       
                 
   

Nine Months Ended September 30,

   

2017

 

2016

 

% Increase/

 (Decrease)

 

Constant Currency (2) 
% Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$ 204,640

 

$ 200,165

 

2.2

 

(7.8)

Used vehicle retail sales

 

64,126

 

50,794

 

26.2

 

13.4

Used vehicle wholesale sales

 

8,247

 

1,871

 

340.8

 

301.7

Total used

 

72,373

 

52,665

 

37.4

 

23.6

Parts and service

 

34,294

 

29,006

 

18.2

 

6.9

Finance, insurance and other, net

 

5,913

 

4,178

 

41.5

 

28.1

Total 

 

$ 317,220

 

$ 286,014

 

10.9

 

0.0

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.8

 

5.7

       

Used vehicle retail sales

 

7.3

 

5.9

       

Used vehicle wholesale sales

 

7.9

 

7.4

       

Total used

 

7.4

 

6.0

       

Parts and service

 

45.8

 

39.0

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

12.2

 

10.5

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$   11,858

 

$   11,394

 

4.1

 

(6.2)

Used vehicle retail sales

 

4,708

 

3,018

 

56.0

 

43.8

Used vehicle wholesale sales

 

653

 

138

 

373.2

 

330.1

Total used

 

5,361

 

3,156

 

69.9

 

56.3

Parts and service

 

15,722

 

11,316

 

38.9

 

25.5

Finance, insurance and other, net

 

5,913

 

4,178

 

41.5

 

28.1

Total 

 

$   38,854

 

$   30,044

 

29.3

 

17.0

                 

UNITS SOLD:

               

Retail new vehicles sold

 

5,864

 

6,690

 

(12.3)

   

Retail used vehicles sold

 

2,925

 

2,901

 

0.8

   

Wholesale used vehicles sold

 

723

 

634

 

14.0

   

Total used

 

3,648

 

3,535

 

3.2

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$   34,898

 

$   29,920

 

16.6

 

5.2

Used vehicle retail

 

$   21,923

 

$   17,509

 

25.2

 

12.4

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$     2,022

 

$     1,703

 

18.7

 

7.0

Used vehicle retail sales

 

1,610

 

1,040

 

54.8

 

42.6

Used vehicle wholesale sales

 

903

 

218

 

314.2

 

277.1

Total used

 

1,470

 

893

 

64.6

 

51.5

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

 

$        673

 

$        436

 

54.4

 

39.8

                 

OTHER: 

               

SG&A expenses

 

$   34,693

 

$   29,192

 

18.8

 

7.6

Adjusted SG&A expenses(2)

 

$   34,693

 

$   28,918

 

20.0

 

8.6

SG&A as % revenues

 

10.9

 

10.2

       

Adjusted SG&A as % revenues (2)

 

10.9

 

10.1

       

SG&A as % gross profit

 

89.3

 

97.2

       

Adjusted SG&A as % gross profit (2)

 

89.3

 

96.3

       

Operating margin %

 

1.0

 

0.0

       

Adjusted operating margin % (2)

 

1.0

 

0.1

       
                   

(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 September 30,

   

2017

 

2016

 

% Increase/

(Decrease)

 

Constant Currency (2)

% Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$ 1,632,489

 

$ 1,564,571

 

4.3

 

4.2

Used vehicle retail sales

 

701,226

 

691,715

 

1.4

 

1.3

Used vehicle wholesale sales

 

95,935

 

102,722

 

(6.6)

 

(6.6)

Total used

 

797,161

 

794,437

 

0.3

 

0.3

Parts and service

 

331,540

 

315,570

 

5.1

 

5.0

Finance, insurance and other, net

 

106,839

 

106,914

 

(0.1)

 

(0.1)

Total 

 

$ 2,868,029

 

$ 2,781,492

 

3.1

 

3.0

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.2

 

5.1

       

Used vehicle retail sales

 

6.5

 

6.6

       

Used vehicle wholesale sales

 

(0.3)

 

(1.8)

       

Total used

 

5.7

 

5.5

       

Parts and service

 

53.9

 

54.3

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

14.5

 

14.4

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$      84,241

 

$      79,371

 

6.1

 

5.9

Used vehicle retail sales

 

45,297

 

45,376

 

(0.2)

 

(0.2)

Used vehicle wholesale sales

 

(254)

 

(1,827)

 

86.1

 

85.5

Total used

 

45,043

 

43,549

 

3.4

 

3.4

Parts and service

 

178,856

 

171,225

 

4.5

 

4.4

Finance, insurance and other, net

 

106,839

 

106,914

 

(0.1)

 

(0.1)

Total 

 

$    414,979

 

$    401,059

 

3.5

 

3.4

                 

UNITS SOLD:

               

Retail new vehicles sold

 

45,645

 

44,563

 

2.4

   

Retail used vehicles sold

 

32,215

 

32,365

 

(0.5)

   

Wholesale used vehicles sold

 

13,709

 

14,678

 

(6.6)

   

Total used

 

45,924

 

47,043

 

(2.4)

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$      35,765

 

$      35,109

 

1.9

 

1.7

Used vehicle retail

 

$      21,767

 

$      21,372

 

1.8

 

1.8

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$        1,846

 

$        1,781

 

3.6

 

3.4

Used vehicle retail sales

 

1,406

 

1,402

 

0.3

 

0.2

Used vehicle wholesale sales

 

(19)

 

(124)

 

84.7

 

84.5

Total used

 

981

 

926

 

5.9

 

5.9

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

 

$        1,372

 

$        1,390

 

(1.3)

 

(1.3)

                 

OTHER: 

               

Adjusted Finance, insurance and other revenue, net(2) (3)

 

$    113,389

 

$    106,914

 

6.1

 

6.0

Adjusted Total revenue (2)

 

$ 2,874,579

 

$ 2,781,492

 

3.3

 

3.2

Adjusted Total gross profit (2) 

 

$    421,529

 

$    401,059

 

5.1

 

5.0

Adjusted Total gross margin (2) 

 

14.7

 

14.4

       

Adjusted Finance, insurance and other, net (per retail unit) (2) 

 

$        1,456

 

$        1,390

 

4.7

 

4.7

SG&A expenses

 

$    313,146

 

$    293,749

 

6.6

 

6.5

Adjusted SG&A expenses (2)

 

$    303,479

 

$    293,025

 

3.6

 

3.5

SG&A as % revenues

 

10.9

 

10.6

       

Adjusted SG&A as % revenues (2)

 

10.6

 

10.5

       

SG&A as % gross profit

 

75.5

 

73.2

       

Adjusted SG&A as % gross profit (2)

 

72.0

 

73.1

       

Operating margin %

 

2.7

 

3.0

       

Adjusted operating margin % (2)

 

3.6

 

3.4

       
                 
   

Nine Months Ended September 30,

   

2017

 

2016

 

% Increase/

 (Decrease)

 

Constant Currency (2)

% Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$ 4,364,999

 

$ 4,452,137

 

(2.0)

 

(1.0)

Used vehicle retail sales

 

2,015,330

 

2,061,772

 

(2.3)

 

(1.1)

Used vehicle wholesale sales

 

292,131

 

293,234

 

(0.4)

 

2.0

Total used

 

2,307,461

 

2,355,006

 

(2.0)

 

(0.7)

Parts and service

 

970,961

 

930,493

 

4.3

 

5.0

Finance, insurance and other, net

 

306,875

 

310,435

 

(1.1)

 

(0.6)

Total 

 

$ 7,950,296

 

$ 8,048,071

 

(1.2)

 

(0.2)

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.2

 

5.2

       

Used vehicle retail sales

 

6.6

 

6.8

       

Used vehicle wholesale sales

 

 

       

Total used

 

5.8

 

6.0

       

Parts and service

 

53.9

 

54.1

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

15.0

 

14.7

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$    225,956

 

$    229,652

 

(1.6)

 

(0.6)

Used vehicle retail sales

 

133,971

 

140,984

 

(5.0)

 

(4.1)

Used vehicle wholesale sales

 

(73)

 

17

 

(529.4)

 

(3,053.6)

Total used

 

133,898

 

141,001

 

(5.0)

 

(4.5)

Parts and service

 

523,457

 

503,098

 

4.0

 

4.8

Finance, insurance and other, net

 

306,875

 

310,435

 

(1.1)

 

(0.6)

Total 

 

$ 1,190,186

 

$ 1,184,186

 

0.5

 

1.2

                 

UNITS SOLD:

               

Retail new vehicles sold

 

122,807

 

126,322

 

(2.8)

   

Retail used vehicles sold

 

94,096

 

96,206

 

(2.2)

   

Wholesale used vehicles sold

 

41,077

 

41,708

 

(1.5)

   

Total used

 

135,173

 

137,914

 

(2.0)

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$      35,544

 

$      35,244

 

0.8

 

1.8

Used vehicle retail

 

$      21,418

 

$      21,431

 

(0.1)

 

1.1

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$        1,840

 

$        1,818

 

1.2

 

2.2

Used vehicle retail sales

 

1,424

 

1,465

 

(2.8)

 

(2.0)

Used vehicle wholesale sales

 

(2)

 

 

-

 

(3,099.0)

Total used

 

991

 

1,022

 

(3.0)

 

(2.5)

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

 

$        1,415

 

$        1,395

 

1.4

 

2.0

                 

OTHER: 

               

Adjusted Finance, insurance and other revenue, net(2) (3)

 

$    313,425

 

$    310,435

 

1.0

 

1.5

Adjusted Total revenue (2)

 

$ 7,956,846

 

$ 8,048,071

 

(1.1)

 

(0.1)

Adjusted Total gross profit (2) 

 

$ 1,196,736

 

$ 1,184,186

 

1.1

 

1.8

Adjusted Total gross margin (2) 

 

15.0

 

14.7

       

Adjusted Finance, insurance and other, net (per retail unit) (2) 

 

$        1,445

 

$        1,395

 

3.6

 

4.2

SG&A expenses

 

$    885,579

 

$    866,513

 

2.2

 

3.0

Adjusted SG&A expenses (2)

 

$    876,814

 

$    859,391

 

2.0

 

2.8

SG&A as % revenues

 

11.1

 

10.8

       

Adjusted SG&A as % revenues (2)

 

11.0

 

10.7

       

SG&A as % gross profit

 

74.4

 

73.2

       

Adjusted SG&A as % gross profit (2)

 

73.3

 

72.6

       

Operating margin %

 

3.2

 

3.3

       

Adjusted operating margin % (2)

 

3.5

 

3.6

       
                   

(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.

(3)

Finance, insurance and other revenue represents fees earned for the financing of vehicle sales transactions and from the sale of insurance and vehicle service contracts. Such amounts are reported net of estimated amounts to be charged back in the future. As a result, finance, insurance and other revenue and gross profits are the same.

 

 

Group 1 Automotive, Inc.

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

(Unaudited)

 (Dollars in thousands, except per share amounts)

             
   

Three Months Ended September 30,

   

2017

 

2016

 

% Increase/
(Decrease)

FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:

         
 

As reported

$               96,383

 

$      98,295

 

(1.9)

 

  Pre-tax adjustments:

         
 

    Catastrophic events 

6,550

 

-

   
 

   Adjusted Finance, insurance and other revenue, net (1)

$             102,933

 

$      98,295

 

4.7

             

TOTAL REVENUES RECONCILIATION: 

         
 

As reported

$          2,301,959

 

$ 2,274,723

 

1.2

 

  Pre-tax adjustments:

         
 

    Catastrophic events 

6,550

 

-

   
 

   Adjusted Total Revenues (1)

$          2,308,509

 

$ 2,274,723

 

1.5

             

TOTAL GROSS PROFIT RECONCILIATION:

         
 

As reported

$             353,567

 

$    346,726

 

2.0

 

  Pre-tax adjustments:

         
 

    Catastrophic events 

6,550

 

-

   
 

   Adjusted Total Gross Profit (1)

$             360,117

 

$    346,726

 

3.9

             

SG&A RECONCILIATION:

         
 

As reported

$             261,787

 

$    246,501

 

6.2

 

  Pre-tax adjustments:

         
 

    Catastrophic events 

(8,149)

 

(450)

   
 

    Gain (loss) on real estate and dealership transactions 

(798)

 

1,176

   
 

    Legal settlements 

(720)

 

-

   
 

   Adjusted SG&A (1)

$             252,120

 

$    247,227

 

2.0

             

TOTAL GROSS MARGIN %:

         
 

Unadjusted

15.4

 

15.2

   
 

Adjusted (1)

15.6

 

15.2

   

FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):

         
 

Unadjusted

$                 1,566

 

$        1,588

 

(1.4)

 

Adjusted (1)

$                 1,673

 

$        1,588

 

5.4

SG&A AS % REVENUES:

         
 

Unadjusted

11.4

 

10.8

   
 

Adjusted (1)

11.0

 

10.9

   

SG&A AS % GROSS PROFIT:

         
 

Unadjusted

74.0

 

71.1

   
 

Adjusted (1)

70.0

 

71.3

   

OPERATING MARGIN %:

         
 

Unadjusted

3.0

 

3.4

   
 

Adjusted (1), (2)

4.1

 

3.9

   

PRETAX MARGIN %:

         
 

Unadjusted

1.8

 

2.3

   
 

Adjusted (1), (2)

2.9

 

2.8

   
             

SAME STORE FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:

         
 

As reported

$               95,195

 

$      96,685

 

(1.5)

 

  Pre-tax adjustments:

         
 

    Catastrophic events 

6,550

 

-

   
 

   Adjusted Finance, insurance and other revenue, net (1)

$             101,745

 

$      96,685

 

5.2

             

SAME STORE TOTAL REVENUES RECONCILIATION: 

         
 

As reported

$          2,280,189

 

$ 2,246,322

 

1.5

 

  Pre-tax adjustments:

         
 

    Catastrophic events 

6,550

 

-

   
 

   Adjusted Total Revenues (1)

$          2,286,739

 

$ 2,246,322

 

1.8

             

SAME STORE TOTAL GROSS PROFIT RECONCILIATION:

         
 

As reported

$             349,888

 

$    342,602

 

2.1

 

  Pre-tax adjustments:

         
 

    Catastrophic events 

6,550

 

-

   
 

   Adjusted Total Gross Profit (1)

$             356,438

 

$    342,602

 

4.0

             

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$             258,862

 

$    243,151

 

6.5

 

  Pre-tax adjustments:

         
 

    Catastrophic events 

(8,149)

 

(450)

   
 

    Loss on real estate and dealership transactions 

(798)

 

-

   
 

    Legal settlements 

(720)

 

-

   
 

   Adjusted Same Store SG&A (1)

$             249,195

 

$    242,701

 

2.7

             

SAME STORE TOTAL GROSS MARGIN %:

         
 

Unadjusted

15.3

 

15.3

   
 

Adjusted (1)

15.6

 

15.3

   

SAME STORE FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):

         
 

Unadjusted

$                 1,560

 

$        1,588

 

(1.8)

 

Adjusted (1)

$                 1,668

 

$        1,588

 

5.0

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

11.4

 

10.8

   
 

Adjusted (1)

10.9

 

10.8

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

74.0

 

71.0

   
 

Adjusted (1)

69.9

 

70.8

   

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

3.0

 

3.5

   
 

Adjusted (1), (3)

4.2

 

4.0

   
             
   

Nine Months Ended September 30,

   

2017

 

2016

 

% Increase/
(Decrease)

FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:

         
 

As reported

$             276,754

 

$    284,644

 

(2.8)

 

  Pre-tax adjustments:

         
 

    Catastrophic events 

6,550

 

-

   
 

    Adjusted Finance, insurance and other revenue, net (1)

$             283,304

 

$    284,644

 

(0.5)

             

TOTAL REVENUES RECONCILIATION: 

         
 

As reported

$          6,393,368

 

$ 6,563,739

 

(2.6)

 

  Pre-tax adjustments:

         
 

    Catastrophic events 

6,550

 

-

   
 

    Adjusted Total Revenues (1)

$          6,399,918

 

$ 6,563,739

 

(2.5)

             

TOTAL GROSS PROFIT RECONCILIATION:

         
 

As reported

$          1,014,636

 

$ 1,024,033

 

(0.9)

 

  Pre-tax adjustments:

         
 

    Catastrophic events 

6,550

 

-

   
 

   Adjusted Total Gross Profit (1)

$          1,021,186

 

$ 1,024,033

 

(0.3)

             

SG&A RECONCILIATION:

         
 

As reported

$             741,904

 

$    737,730

 

0.6

 

  Pre-tax adjustments:

         
 

    Catastrophic events 

(8,792)

 

(5,873)

   
 

    Gain (loss) on real estate and dealership transactions 

(798)

 

1,856

   
 

    Acquisition costs 

-

 

(30)

   
 

         Legal Settlements (4)

1,113

 

-

   
 

   Adjusted SG&A (1)

$             733,427

 

$    733,683

 

(0.0)

             

TOTAL GROSS MARGIN %:

         
 

Unadjusted

15.9

 

15.6

   
 

Adjusted (1)

16.0

 

15.6

   

FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):

         
 

Unadjusted

$                 1,628

 

$        1,585

 

2.7

 

Adjusted (1)

$                 1,667

 

$        1,585

 

5.2

SG&A AS % REVENUES:

         
 

Unadjusted

11.6

 

11.2

   
 

Adjusted (1)

11.5

 

11.2

   

SG&A AS % OF GROSS PROFIT:

         
 

Unadjusted

73.1

 

72.0

   
 

Adjusted (1)

71.8

 

71.6

   

OPERATING MARGIN %:

         
 

 Unadjusted 

3.6

 

3.7

   
 

Adjusted (1), (2)

3.9

 

3.9

   

PRETAX MARGIN %:

         
 

Unadjusted

2.2

 

2.5

   
 

Adjusted (1), (2)

2.6

 

2.8

   
             

SAME STORE FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:

         
 

As reported

$             274,464

 

$    279,919

 

(1.9)

 

  Pre-tax adjustments:

         
 

    Catastrophic events 

6,550

 

-

   
 

   Adjusted Finance, insurance and other revenue, net (1)

$             281,014

 

$    279,919

 

0.4

             

SAME STORE TOTAL REVENUES RECONCILIATION: 

         
 

As reported

$          6,364,885

 

$ 6,468,797

 

(1.6)

 

  Pre-tax adjustments:

         
 

    Catastrophic events 

6,550

 

-

   
 

    Adjusted Total Revenues (1)

$          6,371,435

 

$ 6,468,797

 

(1.5)

             

SAME STORE TOTAL GROSS PROFIT RECONCILIATION:

         
 

As reported

$          1,009,618

 

$ 1,010,179

 

(0.1)

 

  Pre-tax adjustments:

         
 

    Catastrophic events 

6,550

 

-

   
 

   Adjusted Total Gross Profit (1)

$          1,016,168

 

$ 1,010,179

 

0.6

             

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$             737,548

 

$    725,162

 

1.7

 

  Pre-tax adjustments:

         
 

    Catastrophic events 

(8,792)

 

(5,873)

   
 

    Loss on real estate and dealership transactions 

(798)

 

(384)

   
 

    Acquisition costs 

-

 

(30)

   
 

         Legal Settlements (4)

1,113

 

-

   
 

   Adjusted Same Store SG&A(1)

$             729,071

 

$    718,875

 

1.4

             

SAME STORE TOTAL GROSS MARGIN %:

         
 

Unadjusted

15.9

 

15.6

   
 

Adjusted (1)

15.9

 

15.6

   

SAME STORE FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):

         
 

Unadjusted

$                 1,622

 

$        1,588

 

2.1

 

Adjusted (1)

$                 1,660

 

$        1,588

 

4.5

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

11.6

 

11.2

   
 

Adjusted (1)

11.5

 

11.1

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

73.1

 

71.8

   
 

Adjusted (1)

71.7

 

71.2

   

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

3.6

 

3.7

   
 

Adjusted (1), (3)

4.0

 

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 $9,526 for the three and nine months ended September 30, 2017, respectively, and $10,855 and $12,389 for the three and nine months ended September 30, 2016, respectively.

(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $9,526 for the three and nine months ended September 30, 2017, respectively, and $10,793 and $12,327 for the three and nine months ended September 30, 2016, respectively.

(4)

For the nine months ended September 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, except per share amounts)

             
   

 Nine Months Ended September 30, 

   

2017

 

2016

 

% Increase/

 (Decrease)

SG&A RECONCILIATION:

         
 

As reported

$ 137,475

 

$ 119,154

 

15.4

 

  Pre-tax adjustments:

         
 

    Acquisition costs 

(288)

 

(561)

   
 

   Adjusted SG&A (1)

$ 137,187

 

$ 118,593

 

15.7

             

SG&A AS % REVENUES:

         
 

Unadjusted

9.3

 

8.9

   
 

Adjusted (1)

9.3

 

8.9

   

SG&A AS % OF GROSS PROFIT:

         
 

Unadjusted

83.4

 

80.2

   
 

Adjusted (1)

83.2

 

79.8

   

OPERATING MARGIN %:

         
 

Unadjusted

1.5

 

1.8

   
 

Adjusted (1)

1.5

 

1.9

   

PRETAX MARGIN %:

         
 

Unadjusted

1.1

 

1.3

   
 

Adjusted (1),

1.1

 

1.3

   
             

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$ 113,338

 

$ 112,159

 

1.1

 

  Pre-tax adjustments:

         
 

    Acquisition costs 

(288)

 

(561)

   
 

   Adjusted Same Store SG&A (1)

$ 113,050

 

$ 111,598

 

1.3

             

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

8.9

 

8.7

   
 

Adjusted (1)

8.9

 

8.6

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

80.0

 

77.9

   
 

Adjusted (1)

79.8

 

77.5

   

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

1.9

 

2.1

   
 

Adjusted (1)

1.9

 

2.1

   
             

(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, except per share amounts)

             
   

Three Months Ended September 30,

   

2017

 

2016

 

% Increase/
(Decrease)

SG&A RECONCILIATION:

         
 

As reported

$ 13,145

 

$ 12,896

 

1.9

 

  Pre-tax adjustments:

         
 

    Foreign transaction tax 

-

 

(274)

   
 

   Adjusted SG&A (1)

$ 13,145

 

$ 12,622

 

4.1

             

SG&A AS % REVENUES:

         
 

Unadjusted

11.0

 

11.5

   
 

Adjusted (1)

11.0

 

11.2

   

SG&A AS % GROSS PROFIT:

         
 

Unadjusted

92.2

 

103.6

   
 

Adjusted (1)

92.2

 

101.4

   

OPERATING MARGIN %

         
 

Unadjusted

0.6

 

(0.6)

   
 

Adjusted (1),

0.6

 

(0.4)

   

PRETAX MARGIN %:

         
 

Unadjusted

0.5

 

(0.8)

   
 

Adjusted (1)

0.5

 

(0.5)

   
             

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$ 12,746

 

$ 11,762

 

8.4

 

  Pre-tax adjustments:

         
 

    Foreign transaction tax 

-

 

(274)

   
 

   Adjusted Same Store SG&A (1)

$ 12,746

 

$ 11,488

 

11.0

             

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

10.7

 

11.3

   
 

Adjusted (1)

10.7

 

11.0

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

89.8

 

101.4

   
 

Adjusted (1)

89.8

 

99.1

   

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

0.9

 

(0.4)

   
 

Adjusted (1)

0.9

 

(0.1)

   
             
   

 Nine Months Ended September 30, 

   

2017

 

2016

 

% Increase/

 (Decrease)

SG&A RECONCILIATION:

         
 

As reported

$ 37,295

 

$ 34,808

 

7.1

 

  Pre-tax adjustments:

         
 

    Gain (loss) on real estate and dealership transactions 

-

 

(372)

   
 

    Foreign transaction tax 

-

 

(274)

   
 

   Adjusted SG&A (1)

$ 37,295

 

$ 34,162

 

9.2

             

SG&A AS % REVENUES:

         
 

Unadjusted

11.2

 

11.1

   
 

Adjusted (1)

11.2

 

10.9

   

SG&A AS % OF GROSS PROFIT:

         
 

Unadjusted

92.4

 

104.6

   
 

Adjusted (1)

92.4

 

102.6

   

OPERATING MARGIN %:

         
 

Unadjusted

0.6

 

(0.9)

   
 

Adjusted (1), (2)

0.6

 

(0.5)

   

PRETAX MARGIN %:

         
 

Unadjusted

0.4

 

(1.0)

   
 

Adjusted (1), (2)

0.4

 

(0.7)

   
             

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$ 34,693

 

$ 29,192

 

18.8

 

  Pre-tax adjustments:

         
 

    Foreign transaction tax 

-

 

(274)

   
 

   Adjusted Same Store SG&A (1)

$ 34,693

 

$ 28,918

 

20.0

             

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

10.9

 

10.2

   
 

Adjusted (1)

10.9

 

10.1

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

89.3

 

97.2

   
 

Adjusted (1)

89.3

 

96.3

   

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

1.0

 

0.0

   
 

Adjusted (1)

1.0

 

0.1

   
             

(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 nine months ended September 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 September 30,

   

2017

 

2016

 

% Increase/

(Decrease)

             

NET INCOME RECONCILIATION:

         
 

As reported

$            29,881

 

$            35,366

 

(15.5)

 

  Pre-tax adjustments:

         
 

    Catastrophic events  

         
 

    Pre-tax 

14,699

 

450

   
 

    Tax impact 

(5,677)

 

(169)

   
 

    (Gain) loss on real estate and dealership transactions 

         
 

    Pre-tax 

798

 

(1,114)

   
 

    Tax impact 

(301)

 

418

   
 

    Legal settlements  

         
 

    Pre-tax 

720

 

-

   
 

    Tax impact 

(270)

 

-

   
 

    Foreign transaction tax  

         
 

    Pre-tax 

-

 

274

   
 

    Tax impact 

-

 

-

   
 

    Non-cash asset impairment 

         
 

    Pre-tax  

9,526

 

10,793

   
 

    Tax impact 

(3,579)

 

(4,047)

   
 

    Allowance for uncertain tax positions 

         
 

    Pre-tax  

-

 

-

   
 

    Tax impact 

834

 

-

   
 

   Adjusted net income (1)

$            46,631

 

$            41,971

 

11.1

             

ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED

         
 

COMMON SHARES RECONCILIATION:

         
 

Adjusted net income (1)

$            46,631

 

$            41,971

 

11.1

 

Less: Adjusted earnings allocated to participating securities

1,603

 

1,695

 

(5.4)

 

Adjusted net income available to diluted common shares (1)

$            45,028

 

$            40,276

 

11.8

             

 DILUTED INCOME PER COMMON SHARE RECONCILIATION: 

         
 

As reported

$                1.43

 

$                1.65

 

(13.3)

 

After-tax adjustments:

         
 

    Catastrophic events  

0.44

 

0.01

   
 

    (Gain) loss on real estate and dealership transactions 

0.02

 

(0.03)

   
 

    Legal settlements  

0.02

 

-

   
 

    Foreign transaction tax  

-

 

0.01

   
 

    Non-cash asset impairment 

0.28

 

0.32

   
 

    Allowance for uncertain tax positions 

0.04

 

-

   
 

   Adjusted diluted income per share (1)

$                2.23

 

$                1.96

 

13.8

             

FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:

         
 

As reported

$          110,993

 

$          108,710

 

2.1

 

  Pre-tax adjustments:

         
 

    Catastrophic events 

6,550

 

-

   
 

   Adjusted Finance, insurance and other revenue, net (1)

$          117,543

 

$          108,710

 

8.1

             

TOTAL REVENUES RECONCILIATION: 

         
 

As reported

$       3,012,292

 

$       2,823,176

 

6.7

 

  Pre-tax adjustments:

         
 

    Catastrophic events 

6,550

 

-

   
 

   Adjusted Total Revenues (1)

$       3,018,842

 

$       2,823,176

 

6.9

             

TOTAL GROSS PROFIT RECONCILIATION:

         
 

As reported

$          431,420

 

$          406,668

 

6.1

 

  Pre-tax adjustments:

         
 

    Catastrophic events 

6,550

 

-

   
 

   Adjusted Total Gross Profit (1)

$          437,970

 

$          406,668

 

7.7

             

SG&A RECONCILIATION:

         
 

As reported

$          328,327

 

$          299,006

 

9.8

 

  Pre-tax adjustments:

         
 

    Catastrophic events  

(8,149)

 

(450)

   
 

    Gain (loss) on real estate and dealership transactions 

(798)

 

1,176

   
 

    Legal settlements  

(720)

 

-

   
 

    Foreign transaction tax  

-

 

(274)

   
 

   Adjusted SG&A(1)

$          318,660

 

$          299,458

 

6.4

             

TOTAL GROSS MARGIN %:

         
 

Unadjusted

14.3

 

14.4

   
 

Adjusted (1)

14.5

 

14.4

   

FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):

         
 

Unadjusted

$              1,343

 

$              1,383

 

(2.9)

 

Adjusted (1)

$              1,422

 

$              1,383

 

2.8

SG&A AS % REVENUES:

         
 

Unadjusted

10.9

 

10.6

   
 

Adjusted (1)

10.6

 

10.6

   

SG&A AS % GROSS PROFIT:

         
 

Unadjusted

76.1

 

73.5

   
 

Adjusted (1)

72.8

 

73.6

   

OPERATING MARGIN %

         
 

Unadjusted

2.6

 

3.0

   
 

Adjusted (1), (2)

3.5

 

3.3

   

PRETAX MARGIN %:

         
 

Unadjusted

1.6

 

2.0

   
 

Adjusted (1), (2)

2.4

 

2.3

   
             

SAME STORE FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:

         
 

As reported

$          106,839

 

$          106,914

 

(0.1)

 

  Pre-tax adjustments:

         
 

    Catastrophic events 

6,550

 

-

   
 

   Adjusted Finance, insurance and other revenue, net (1)

$          113,389

 

$          106,914

 

6.1