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Group 1 Automotive

800 Gessner
Houston, TX 77024

  • Sales: (713) 647-5700
Investor Relations

Group 1 Automotive Reports Record Fourth Quarter & Full Year 2017 Financial Results

- Delivers All-Time Record Revenue of $11.1 Billion for 2017

- Strong Cost Control Drives Record Fourth Quarter Results

- Benefits $73.0 Million from U.S. Tax Reform Bill

HOUSTON, Feb. 8, 2018 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), ("Group 1" or the "Company"), an international, Fortune 500 automotive retailer, today reported 2017 fourth quarter net income of $110.5 million, diluted earnings per common share of $5.27, adjusted net income (a non-GAAP measure) of $44.3 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $2.11.

As shown in the attached non-GAAP reconciliation tables, the 2017 fourth quarter adjusted results (non-GAAP measures) exclude approximately $66.2 million of net after-tax adjustments, or $3.16 per share, for non-core items. These items primarily relate to a reduction in the corporate income tax rate enacted in the U.S. Tax Reform Bill, which benefited the Company in the fourth quarter of 2017 by approximately $73.0 million after-tax, or $3.48 per share. This benefit was partially offset by non-cash asset impairment charges of approximately $6.5 million after-tax, or $0.30 per share.

For the full year of 2017, net income increased 45.1 percent from the comparable prior-year period, to $213.4 million; and diluted earnings per common share increased 51.1 percent, to $10.08. Full year 2017 adjusted net income was nearly flat at $163.5 million; and adjusted diluted earnings per common share increased 4.2 percent, to an all-time high of $7.73. Total revenue grew 2.2 percent (increased 2.7 percent on a constant currency basis), to a record $11.1 billion.

"Despite the headwinds we encountered in the first half of 2017 in our oil-impacted markets and the significant disruptions across our Southeast Texas markets from Hurricane Harvey, we are pleased to have delivered all-time record revenue of $11.1 billion and all-time record adjusted diluted earnings per share of $7.73 for 2017," said Earl J. Hesterberg, Group 1's president and chief executive officer. "Contributing to the record earnings is the impressive work the teams have done on cost control in the U.S. and Brazil during 2017, with the results of those efforts continuing to provide benefits going forward.  In addition, our team in the U.K. continues to outperform the market, delivering impressive growth even as the overall market slows.  I am pleased with the results in all three regions and believe we are well positioned as we enter 2018."

Consolidated Results for Fourth 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 grew 9.2 percent (7.9 percent) to $2.9 billion.
  • Total gross profit grew 9.4 percent (8.3 percent), to $425.7 million.
  • New vehicle revenues increased 10.2 percent (9.0 percent) on 6.4 percent higher unit sales. New vehicle gross profit improved 7.8 percent (6.5 percent), to $89.5 million.
  • Retail used vehicle revenues increased 8.9 percent (7.4 percent) on 5.4 percent higher unit sales. Retail used vehicle gross profit increased 3.8 percent (2.6 percent), to $40.5 million.
  • Parts and service gross profit increased 9.9 percent (8.9 percent) on revenue growth of 10.5 percent (9.5 percent). Same Store parts and service gross profit increased 6.3 percent (5.5 percent) on revenue growth of 7.3 percent (6.5 percent). U.S. Same Store parts and service gross profit increased 5.3 percent on revenue growth of 6.6 percent.
  • Finance and Insurance (F&I) gross profit PRU increased 3.8 percent (3.0 percent), to $1,495. U.S. F&I gross profit PRU increased $56, or 3.4 percent, to an all-time record of $1,700.
  • Selling, General and Administrative (SG&A) expenses as a percent of gross profit increased 100 basis points, to 72.7 percent. Adjusted SG&A expenses as a percent of gross profit improved 180 basis points, to 72.6 percent.

 

Consolidated Results for Full Year 2017 (year-over-year comparable basis)

  • Total revenue increased 2.2 percent (2.7 percent), to a record $11.1 billion.
  • Total gross profit grew 3.2 percent (3.6 percent).
  • New vehicle gross profit increased 1.8 percent (2.2 percent) on 1.8 percent (2.3 percent) higher revenues, as the Company retailed 172,200 new vehicles in 2017.
  • Retail used vehicle gross profit decreased 2.7 percent (decreased 2.1 percent) on a revenue increase of 1.5 percent (2.2 percent).  The Company retailed 129,933 used vehicles in 2017, a 0.6 percent increase over 2016.
  • Parts and service gross profit rose 5.8 percent (6.3 percent) on 6.1 percent (6.4 percent) higher revenues.
  • Adjusted F&I revenues rose 3.5 percent (3.8 percent).  U.S. Adjusted F&I gross PRU increased $76, to $1,675.
  • SG&A expenses as a percent of gross profit increased 110 basis points, to 74.5 percent. Adjusted SG&A expenses as a percent of gross profit remained flat at 73.7. Adjusted U.S. SG&A expenses as a percent of gross profit improved 60 basis points, to 71.1 percent.
  • Operating margin and adjusted operating margin remained flat at 3.1 and 3.4 percent, respectively.

 

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

  • United States:
    The Company's U.S. operations accounted for 78.3 percent of total revenues and 82.4 percent of total gross profit. Total U.S. revenues were $2.3 billion, an increase of 5.4 percent, driven by an 8.5 percent increase in retail new vehicle revenue. New vehicle gross profit PRU grew $18, or 0.9 percent per unit, to $2,067; and total gross profit grew 5.8 percent, to $350.7 million.  The Company has delivered new vehicle gross profit PRU growth for seven of the last eight quarters.  New vehicle inventory ended the quarter at 64 days' supply.

Same Store SG&A expenses as a percent of gross profit improved 60 basis points to 68.9 percent and operating margin improved 40 basis points to 4.1 percent. Adjusted Same Store SG&A expenses as a percent of gross profit improved 300 basis points, to an all-time record of 68.9 percent. Adjusted operating margin improved 40 basis points to an all-time record of 4.2 percent.

  • United Kingdom:
    The Company's U.K. operations accounted for 17.4 percent of total revenues and 14.2 percent of total gross profit. Total U.K. revenues increased 31.1 percent (22.8 percent), to $507.8 million, and were driven by double-digit revenue growth across each business segment, despite the industry decreasing by nearly 13 percent.  Total gross profit increased 36.0 percent (27.4 percent), to $60.4 million

Same Store SG&A expenses as a percent of gross profit improved 30 basis points to 87.1 percent and operating margin improved 10 basis points to 1.1 percent.

  • Brazil:
    The Company's Brazilian operations were profitable during the fourth quarter and accounted for 4.3 percent of total revenues and 3.4 percent of total gross profit. The Company's Same Store new vehicle revenue grew 14.7 percent on a constant currency basis, which outpaced the industry's rebound of 13.5 percent. On a Same Store basis, total revenues grew 13.8 percent, driven by revenue growth of 31.1 percent in F&I, 14.7 percent in new vehicles, 12.2 percent in total used vehicles, and 8.0 percent in parts & service.  F&I gross profit PRU grew 18.8 percent.

The Company's used vehicle operations in Brazil continued to improve during the quarter. On a Same Store constant currency basis, total used vehicle retail margins increased 60 basis points to 7.5 percent and total used vehicle gross profit grew 23.5 percent, on a constant currency basis.

Same Store SG&A expenses as a percent of gross profit increased 150 basis points to 92.0 percent.  Adjusted Same Store SG&A as a percent of gross profit improved 180 basis points to 88.7 percent.

Share Repurchase Authorization

For the full year of 2017, the Company repurchased 649,298 shares at an average price per common share of $61.75 for a total of $40.1 million. As of February 8, 2018, $49.6 million remains available under the Company's prior common stock share repurchase authorization.

Future repurchases may be made from time to time, based on market conditions, legal requirements and other corporate considerations, in the open market or in privately negotiated transactions, and subject to Board approval and covenant restrictions.

Corporate Development

As previously announced in 2018, the Company:

  • Opened a Land Rover franchise in Watford, a North London suburb in the U.K., which is expected to generate approximately $35 million in annualized revenues;
  • Acquired Audi El Paso, which is expected to generate approximately $35 million in annualized revenues; and
  • Acquired Subaru El Paso, which is expected to generate approximately $30 million in annualized revenues.

During 2017, the Company acquired a total of 20 franchises, which are expected to generate an estimated $490 million in annual revenues. The Company disposed of three franchises that generated approximately $35 million in trailing-twelve-month revenues at the time of disposition.

Corporate Tax Reform

As a result of the U.S. Tax Reform Bill, which was enacted on December 22, 2017, the federal statutory corporate tax rate was reduced from 35 percent to 21 percent.  This change allowed the Company to record a tax benefit of $73 million based on the revaluation of its net deferred tax liabilities as of the enactment date.  Beginning in 2018, and going forward, the Company estimates this change will reduce its effective tax rate from approximately 36 percent to a range of 23-24 percent, and improve annual cash flow by about $20 million.  As a result of this tax savings, the Company announced it will pay a $500 bonus to approximately 6,600 tenured, non-management, dealership employees and support staff on March 1, 2018 at a total cost of approximately $3.3 million.  This one-time payment will be reflected in the Company's first quarter 2018 results. 

Fourth Quarter 2017 Earnings Conference Call Details

Group 1's senior management will host a conference call today at 10 a.m. ET to discuss the fourth quarter financial results and the Company's outlook and strategy.

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

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

Domestic:

1-888-317-6003

International:

1-412-317-6061

Conference ID:

3198411

A telephonic replay will be available following the call through February 15, 2018 by dialing:

Domestic:     

1-877-344-7529

International:  

1-412-317-0088

Replay ID:      

10116253

About Group 1 Automotive, Inc.

Group 1 owns and operates 175 automotive dealerships, 230 franchises, and 48 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
Senior Vice President, Manufacturer Relations, Financial Services and Public Affairs
Group 1 Automotive, Inc.
713-647-5770 | pdelongchamps@group1auto.com

or

Clint Woods
Pierpont Communications, Inc.
713-627-2223 | cwoods@piercom.com  

Group 1 Automotive, Inc.

Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)

           
 

 Three Months Ended December 31, 

 

2017

 

2016

 

% Increase/

(Decrease)

REVENUES:

         

New vehicle retail sales

$ 1,661,309

 

$ 1,507,513

 

10.2

Used vehicle retail sales

709,072

 

651,144

 

8.9

Used vehicle wholesale sales

91,809

 

99,774

 

(8.0)

Parts and service

343,510

 

310,966

 

10.5

Finance, insurance and other, net

114,705

 

104,235

 

10.0

Total revenues

2,920,405

 

2,673,632

 

9.2

           

COST OF SALES:

         

New vehicle retail sales

1,571,774

 

1,424,445

 

10.3

Used vehicle retail sales

668,558

 

612,098

 

9.2

Used vehicle wholesale sales

94,199

 

103,754

 

(9.2)

Parts and service

160,199

 

144,154

 

11.1

Total cost of sales

2,494,730

 

2,284,451

 

9.2

           

GROSS PROFIT

425,675

 

389,181

 

9.4

           

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

309,521

 

279,071

 

10.9

           

DEPRECIATION AND AMORTIZATION EXPENSE

15,178

 

13,166

 

15.3

           

ASSET IMPAIRMENTS

9,980

 

20,027

 

(50.2)

           

OPERATING INCOME

90,996

 

76,917

 

18.3

           

OTHER EXPENSE:

         

Floorplan interest expense

(13,713)

 

(11,189)

 

22.6

Other interest expense, net

(18,309)

 

(17,208)

 

6.4

INCOME BEFORE INCOME TAXES

58,974

 

48,520

 

21.5

           

PROVISION FOR INCOME TAXES

51,515

 

(17,692)

 

391.2

           

NET INCOME 

$    110,489

 

$      30,828

 

258.4

Less: Earnings allocated to participating securities

$        3,718

 

$        1,220

 

204.8

Earnings available to diluted common shares

$    106,771

 

$      29,608

 

260.6

DILUTED EARNINGS PER SHARE

$          5.27

 

$          1.44

 

266.0

Weighted average dilutive common shares outstanding

20,261

 

20,592

 

(1.6)

Weighted average participating securities

708

 

858

 

(17.5)

Total weighted average shares outstanding

20,969

 

21,450

 

(2.2)

           
 

 Twelve Months Ended December 31, 

 

2017

 

2016

 

% Increase/

(Decrease)

REVENUES:

         

New vehicle retail sales

$ 6,157,531

 

$ 6,046,075

 

1.8

Used vehicle retail sales

2,798,986

 

2,757,713

 

1.5

Used vehicle wholesale sales

400,170

 

401,863

 

(0.4)

Parts and service

1,338,032

 

1,261,307

 

6.1

Finance, insurance and other, net

429,002

 

420,654

 

2.0

Total revenues

11,123,721

 

10,887,612

 

2.2

           

COST OF SALES:

         

New vehicle retail sales

5,835,526

 

5,729,697

 

1.8

Used vehicle retail sales

2,621,431

 

2,575,234

 

1.8

Used vehicle wholesale sales

402,912

 

406,305

 

(0.8)

Parts and service

618,343

 

581,307

 

6.4

Total cost of sales

9,478,212

 

9,292,543

 

2.0

           

GROSS PROFIT

1,645,509

 

1,595,069

 

3.2

           

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

1,226,195

 

1,170,763

 

4.7

           

DEPRECIATION AND AMORTIZATION EXPENSE

57,936

 

51,234

 

13.1

           

ASSET IMPAIRMENTS

19,506

 

32,838

 

(40.6)

           

OPERATING INCOME

341,872

 

340,234

 

0.5

           

OTHER EXPENSE:

         

Floorplan interest expense

(52,372)

 

(44,927)

 

16.6

Other interest expense, net

(70,497)

 

(67,936)

 

3.8

INCOME BEFORE INCOME TAXES

219,003

 

227,371

 

(3.7)

           

PROVISION FOR INCOME TAXES

(5,561)

 

(80,306)

 

(93.1)

           

NET INCOME

$    213,442

 

$    147,065

 

45.1

Less: Earnings allocated to participating securities

$        7,511

 

$        5,869

 

28.0

Earnings available to diluted common shares

$    205,931

 

$    141,196

 

45.8

DILUTED EARNINGS PER SHARE

$        10.08

 

$          6.67

 

51.1

Weighted average dilutive common shares outstanding

20,425

 

21,170

 

(3.5)

Weighted average participating securities

752

 

886

 

(15.1)

Total weighted average shares outstanding

21,177

 

22,056

 

(4.0)

 

Group 1 Automotive, Inc.

Consolidated Balance Sheets

(Dollars in thousands)

             
   

December

31, 2017

 

December

31, 2016

 

% Increase/

(Decrease)

 ASSETS: 

 

(Unaudited)

       

 CURRENT ASSETS: 

           

 Cash and cash equivalents 

 

$      28,787

 

$          20,992

 

37.1

 Contracts in transit and vehicle receivables, net 

 

306,433

 

269,508

 

13.7

 Accounts and notes receivable, net 

 

188,611

 

173,364

 

8.8

 Inventories, net 

 

1,763,293

 

1,651,815

 

6.7

 Prepaid expenses and other current assets 

 

42,062

 

34,908

 

20.5

 Total current assets 

 

2,329,186

 

2,150,587

 

8.3

 PROPERTY AND EQUIPMENT, net 

 

1,318,959

 

1,125,883

 

17.1

 GOODWILL AND INTANGIBLE FRANCHISE RIGHTS 

 

1,198,666

 

1,161,639

 

3.2

 OTHER ASSETS 

 

24,254

 

23,794

 

1.9

 Total assets 

 

$ 4,871,065

 

$     4,461,903

 

9.2

             

 LIABILITIES AND STOCKHOLDERS' EQUITY: 

           

 CURRENT LIABILITIES: 

           

 Floorplan notes payable - credit facility and other 

 

$ 1,240,695

 

$     1,136,654

 

9.2

 Offset account related to floorplan notes payable - credit facility 

 

(86,547)

 

(59,626)

 

45.1

 Floorplan notes payable - manufacturer affiliates 

 

397,183

 

392,661

 

1.2

 Offset account related to floorplan notes payable - manufacturer affiliates 

 

(22,500)

 

(25,500)

 

(11.8)

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

 

77,609

 

72,419

 

7.2

 Current liabilities from interest rate risk management activities 

 

1,996

 

3,941

 

(49.4)

 Accounts payable 

 

412,981

 

356,099

 

16.0

 Accrued expenses 

 

177,070

 

176,469

 

0.3

 Total current liabilities 

 

2,198,487

 

2,053,117

 

7.1

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

 

542,063

 

540,465

 

0.3

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

 

296,151

 

295,591

 

0.2

 ACQUISITION LINE 

 

26,988

 

 

100.0

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

 

405,950

 

333,326

 

21.8

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

 

47,032

 

43,427

 

8.3

 DEFERRED INCOME TAXES 

 

124,404

 

161,502

 

(23.0)

 LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES 

 

8,583

 

20,470

 

(58.1)

 OTHER LIABILITIES 

 

97,125

 

83,805

 

15.9

 STOCKHOLDERS' EQUITY: 

           

 Common stock 

 

255

 

257

 

(0.8)

 Additional paid-in capital 

 

291,461

 

290,899

 

0.2

 Retained earnings 

 

1,246,323

 

1,053,301

 

18.3

 Accumulated other comprehensive loss 

 

(123,226)

 

(146,944)

 

(16.1)

 Treasury stock 

 

(290,531)

 

(267,313)

 

8.7

 Total stockholders' equity 

 

$ 1,124,282

 

$        930,200

 

20.9

 Total liabilities and stockholders' equity 

 

$ 4,871,065

 

$     4,461,903

 

9.2

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

                   
     

Three Months Ended

 

Twelve Months Ended

     

December 31,

 

December 31,

     

2017 (%)

 

2016 (%)

 

2017 (%)

 

2016 (%)

NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:

             

Region

Geographic Market

               
 

Texas

 

39.2

 

37.1

 

37.0

 

36.5

 

California

 

7.3

 

8.6

 

7.5

 

9.1

 

Oklahoma

 

6.0

 

6.4

 

6.1

 

6.8

 

Georgia

 

4.6

 

4.5

 

4.6

 

4.3

United States

Massachusetts

 

4.5

 

4.6

 

4.6

 

4.8

 

Florida

 

2.9

 

2.8

 

2.6

 

2.6

 

New Hampshire

 

1.9

 

2.0

 

2.0

 

1.9

 

Louisiana

 

1.8

 

2.0

 

1.9

 

2.1

 

New Jersey

 

1.6

 

1.7

 

1.7

 

1.6

 

South Carolina

 

1.6

 

1.6

 

1.4

 

1.4

 

Kansas

 

1.4

 

1.7

 

1.6

 

1.8

 

Mississippi

 

1.1

 

1.3

 

1.3

 

1.5

 

Alabama

 

0.8

 

0.9

 

1.0

 

0.9

 

Maryland

 

0.4

 

0.5

 

0.4

 

0.5

 

New Mexico 

 

0.1

 

 

0.1

 

     

75.2

 

75.7

 

73.8

 

75.8

                   

International

United Kingdom

 

19.5

 

18.7

 

21.3

 

18.4

 

Brazil

 

5.3

 

5.6

 

4.9

 

5.8

     

100.0

 

100.0

 

100.0

 

100.0

                   

NEW VEHICLE UNIT SALES BRAND MIX:

               

Toyota/Scion/Lexus

 

25.4

 

25.8

 

25.3

 

24.9

Volkswagen/Audi/Porsche

 

13.2

 

11.2

 

13.0

 

11.0

BMW/MINI

 

12.4

 

14.4

 

12.7

 

13.5

Ford/Lincoln

 

11.4

 

10.8

 

11.5

 

11.0

Honda/Acura

 

9.2

 

8.8

 

9.2

 

9.9

Nissan

 

7.0

 

7.5

 

7.4

 

7.1

Chevrolet/GMC/Buick/Cadillac

 

6.3

 

7.0

 

6.2

 

7.4

Mercedes-Benz/smart/Sprinter

 

4.4

 

4.8

 

4.0

 

4.3

Chrysler/Dodge/Jeep/RAM

 

3.9

 

3.6

 

3.9

 

4.0

Hyundai/Kia

 

3.8

 

3.6

 

3.9

 

4.2

Other

 

3.0

 

2.5

 

2.9

 

2.7

     

100.0

 

100.0

 

100.0

 

100.0

 

Group 1 Automotive, Inc.

Additional Information - U.S.

(Unaudited)

(Dollars in thousands, except per unit amounts)

             
   

Three Months Ended December 31,

   

2017

 

2016

 

% Increase/

(Decrease)

REVENUES:

           

New vehicle retail sales

 

$ 1,310,577

 

$ 1,207,922

 

8.5

Used vehicle retail sales

 

540,528

 

532,913

 

1.4

Used vehicle wholesale sales

 

50,284

 

70,954

 

(29.1)

Total used

 

590,812

 

603,867

 

(2.2)

Parts and service

 

286,608

 

266,033

 

7.7

Finance, insurance and other, net

 

99,200

 

93,112

 

6.5

Total

 

$ 2,287,197

 

$ 2,170,934

 

5.4

             

GROSS MARGIN %:

           

New vehicle retail sales

 

5.3

 

5.4

   

Used vehicle retail sales

 

5.9

 

6.2

   

Used vehicle wholesale sales

 

(4.5)

 

(3.9)

   

Total used

 

5.0

 

5.0

   

Parts and service

 

53.2

 

53.8

   

Finance, insurance and other, net

 

100.0

 

100.0

   

Total

 

15.3

 

15.3

   
             

GROSS PROFIT:

           

New vehicle retail sales

 

$      69,455

 

$      65,101

 

6.7

Used vehicle retail sales

 

31,931

 

32,877

 

(2.9)

Used vehicle wholesale sales

 

(2,257)

 

(2,796)

 

19.3

Total used

 

29,674

 

30,081

 

(1.4)

Parts and service

 

152,349

 

143,023

 

6.5

Finance, insurance and other, net

 

99,200

 

93,112

 

6.5

Total 

 

$    350,678

 

$    331,317

 

5.8

             

UNITS SOLD:

           

Retail new vehicles sold

 

33,608

 

31,779

 

5.8

Retail used vehicles sold

 

24,735

 

24,866

 

(0.5)

Wholesale used vehicles sold

 

8,194

 

10,115

 

(19.0)

Total used

 

32,929

 

34,981

 

(5.9)

             

AVERAGE RETAIL SALES PRICE:

           

New vehicle retail

 

$      38,996

 

$      38,010

 

2.6

Used vehicle retail

 

$      21,853

 

$      21,431

 

2.0

             

GROSS PROFIT PER UNIT SOLD:

           

New vehicle retail sales

 

$        2,067

 

$        2,049

 

0.9

Used vehicle retail sales

 

1,291

 

1,322

 

(2.3)

Used vehicle wholesale sales

 

(275)

 

(276)

 

0.4

Total used

 

901

 

860

 

4.8

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

 

$        1,700

 

$        1,644

 

3.4

             

OTHER: 

           

SG&A expenses

 

$    242,070

 

$    227,411

 

6.4

Adjusted SG&A expenses (1)

 

$    242,070

 

$    238,227

 

1.6

SG&A as % revenues

 

10.6

 

10.5

   

Adjusted SG&A as % revenues (1)

 

10.6

 

11.0

   

SG&A as % gross profit

 

69.0

 

68.6

   

Adjusted SG&A as % gross profit (1)

 

69.0

 

71.9

   

Operating margin %

 

4.1

 

3.8

   

Adjusted operating margin % (1)

 

4.2

 

3.8

   

Pretax margin %

 

2.8

 

2.7

   

Adjusted pretax margin % (1)

 

2.9

 

2.6

   
             

INTEREST EXPENSE:

           

Floorplan interest expense

 

$    (12,267)

 

$    (10,015)

 

22.5

Floorplan assistance

 

12,952

 

12,201

 

6.2

Net floorplan income

 

$           685

 

$        2,186

 

(68.7)

Other interest expense, net

 

$    (16,922)

 

$    (15,740)

 

7.5

             
   

Twelve Months Ended December 31,

   

2017

 

2016

 

% Increase/

(Decrease)

REVENUES:

           

New vehicle retail sales

 

$ 4,768,864

 

$ 4,766,047

 

0.1

Used vehicle retail sales

 

2,160,699

 

2,242,508

 

(3.6)

Used vehicle wholesale sales

 

250,668

 

276,710

 

(9.4)

Total used

 

2,411,367

 

2,519,218

 

(4.3)

Parts and service

 

1,124,380

 

1,071,651

 

4.9

Finance, insurance and other, net

 

375,954

 

377,756

 

(0.5)

Total 

 

$ 8,680,565

 

$ 8,734,672

 

(0.6)

             

GROSS MARGIN %:

           

New vehicle retail sales

 

5.1

 

5.1

   

Used vehicle retail sales

 

6.7

 

6.9

   

Used vehicle wholesale sales

 

(1.0)

 

(1.2)

   

Total used

 

5.9

 

6.0

   

Parts and service

 

53.6

 

54.4

   

Finance, insurance and other, net

 

100.0

 

100.0

   

Total

 

15.7

 

15.5

   
             

GROSS PROFIT:

           

New vehicle retail sales

 

$    244,286

 

$    242,773

 

0.6

Used vehicle retail sales

 

144,529

 

155,709

 

(7.2)

Used vehicle wholesale sales

 

(2,427)

 

(3,439)

 

29.4

Total used

 

142,102

 

152,270

 

(6.7)

Parts and service

 

602,972

 

582,550

 

3.5

Finance, insurance and other, net

 

375,954

 

377,756

 

(0.5)

Total 

 

$ 1,365,314

 

$ 1,355,349

 

0.7

             

UNITS SOLD:

           

Retail new vehicles sold

 

127,141

 

130,471

 

(2.6)

Retail used vehicles sold

 

101,170

 

105,754

 

(4.3)

Wholesale used vehicles sold

 

37,662

 

41,009

 

(8.2)

Total used

 

138,832

 

146,763

 

(5.4)

             

AVERAGE RETAIL SALES PRICE:

           

New vehicle retail sales

 

$      37,508

 

$      36,530

 

2.7

Used vehicle retail sales

 

$      21,357

 

$      21,205

 

0.7

             

GROSS PROFIT PER UNIT SOLD:

           

New vehicle retail sales

 

$        1,921

 

$        1,861

 

3.2

Used vehicle retail sales

 

$        1,429

 

$        1,472

 

(2.9)

Used vehicle wholesale sales

 

(64)

 

(84)

 

23.8

Total used

 

$        1,024

 

$        1,038

 

(1.3)

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

 

$        1,647

 

$        1,599

 

3.0

             

OTHER: 

           

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

 

$    382,504

 

$    377,756

 

1.3

Adjusted Total Revenue (1) 

 

$ 8,687,115

 

$ 8,734,672

 

(0.5)

Adjusted Total Gross Profit (1) 

 

$ 1,371,864

 

$ 1,355,349

 

1.2

Adjusted Total Gross Margin (1) 

 

15.8

 

15.5

   

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

 

$        1,675

 

$        1,599

 

4.8

SG&A expenses

 

$    983,974

 

$    965,139

 

2.0

Adjusted SG&A expenses (1)

 

$    975,497

 

$    971,908

 

0.4

SG&A as % revenues

 

11.3

 

11.0

   

Adjusted SG&A as % revenues (1)

 

11.2

 

11.1

   

SG&A as % gross profit

 

72.1

 

71.2

   

Adjusted SG&A as % gross profit (1)

 

71.1

 

71.7

   

Operating margin %

 

3.7

 

3.7

   

Adjusted operating margin % (1)

 

4.0

 

3.9

   

Pretax margin %

 

2.4

 

2.5

   

Adjusted pretax margin % (1)

 

2.7

 

2.7

   
             

INTEREST EXPENSE:

           

Floorplan interest expense

 

$    (47,221)

 

$    (40,444)

 

16.8

Floorplan assistance

 

47,984

 

48,377

 

(0.8)

Net floorplan income

 

$           763

 

$        7,933

 

(90.4)

Other interest expense, net

 

$    (66,493)

 

$    (62,320)

 

6.7

             
   

(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.

(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 December 31,

   

2017

 

2016

 

% Increase/

(Decrease)

 

Constant Currency (1)

% Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$       267,785

 

$       222,831

 

20.2

 

12.5

Used vehicle retail sales

 

144,415

 

94,403

 

53.0

 

43.3

Used vehicle wholesale sales

 

37,243

 

27,762

 

34.2

 

25.7

Total used

 

181,658

 

122,165

 

48.7

 

39.3

Parts and service

 

45,141

 

33,182

 

36.0

 

27.5

Finance, insurance and other, net

 

13,263

 

9,314

 

42.4

 

33.2

Total

 

$       507,847

 

$       387,492

 

31.1

 

22.8

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.7

 

6.0

       

Used vehicle retail sales

 

4.6

 

4.8

       

Used vehicle wholesale sales

 

(0.9)

 

(4.4)

       

Total used

 

3.5

 

2.7

       

Parts and service

 

56.6

 

55.8

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

11.9

 

11.5

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$         15,231

 

$         13,308

 

14.4

 

7.1

Used vehicle retail sales

 

6,696

 

4,497

 

48.9

 

39.5

Used vehicle wholesale sales

 

(322)

 

(1,235)

 

73.9

 

75.4

Total used

 

6,374

 

3,262

 

95.4

 

83.1

Parts and service

 

25,559

 

18,532

 

37.9

 

29.2

Finance, insurance and other, net

 

13,263

 

9,314

 

42.4

 

33.2

Total 

 

$         60,427

 

$         44,416

 

36.0

 

27.4

                 

UNITS SOLD:

               

Retail new vehicles sold

 

8,750

 

7,880

 

11.0

   

Retail used vehicles sold

 

6,188

 

4,429

 

39.7

   

Wholesale used vehicles sold

 

5,089

 

3,780

 

34.6

   

Total used

 

11,277

 

8,209

 

37.4

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$         30,604

 

$         28,278

 

8.2

 

1.4

Used vehicle retail

 

$         23,338

 

$         21,315

 

9.5

 

2.5

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$           1,741

 

$           1,689

 

3.1

 

(3.6)

Used vehicle retail sales

 

1,082

 

1,015

 

6.6

 

(0.1)

Used vehicle wholesale sales

 

(63)

 

(327)

 

80.7

 

81.7

Total used

 

565

 

397

 

42.3

 

33.3

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

 

$              888

 

$              757

 

17.3

 

9.7

                 

OTHER: 

               

SG&A expenses

 

$         54,095

 

$         39,482

 

37.0

 

28.3

Adjusted SG&A expenses(1)

 

$         54,095

 

$         39,137

 

38.2

 

29.4

SG&A as % revenues

 

10.7

 

10.2

       

Adjusted SG&A as % revenues (1)

 

10.7

 

10.1

       

SG&A as % gross profit

 

89.5

 

88.9

       

Adjusted SG&A as % gross profit (1)

 

89.5

 

88.1

       

Operating margin %

 

0.8

 

0.8

       

Adjusted operating margin % (1)

 

0.8

 

0.9

       

Pretax margin %

 

0.3

 

0.2

       

Adjusted pretax margin % (1)

 

0.3

 

0.3

       
                 

INTEREST EXPENSE:

               

Floorplan interest expense

 

$         (1,304)

 

$         (1,085)

 

20.2

 

12.5

Floorplan assistance

 

237

 

182

 

30.2

 

22.1

Net floorplan expense

 

$         (1,067)

 

$            (903)

 

18.2

 

10.6

Other interest expense, net

 

$         (1,278)

 

$         (1,231)

 

3.8

 

(2.8)

                 
                 
   

Twelve Months Ended December 31,

   

2017

 

2016

 

% Increase/

(Decrease)

 

Constant Currency (1)

% Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$    1,092,612

 

$       987,538

 

10.6

 

16.0

Used vehicle retail sales

 

546,266

 

434,203

 

25.8

 

32.3

Used vehicle wholesale sales

 

136,847

 

121,747

 

12.4

 

18.1

Total used

 

683,113

 

555,950

 

22.9

 

29.2

Parts and service

 

165,755

 

143,362

 

15.6

 

21.3

Finance, insurance and other, net

 

44,523

 

36,305

 

22.6

 

27.9

Total 

 

$    1,986,003

 

$    1,723,155

 

15.3

 

20.9

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.5

 

5.7

       

Used vehicle retail sales

 

4.8

 

5.0

       

Used vehicle wholesale sales

 

(0.9)

 

(1.0)

       

Total used

 

3.7

 

3.7

       

Parts and service

 

57.3

 

55.4

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

11.3

 

11.2

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$         60,581

 

$         56,655

 

6.9

 

11.9

Used vehicle retail sales

 

26,275

 

21,826

 

20.4

 

26.9

Used vehicle wholesale sales

 

(1,173)

 

(1,181)

 

0.7

 

7.8

Total used

 

25,102

 

20,645

 

21.6

 

28.9

Parts and service

 

95,047

 

79,377

 

19.7

 

25.6

Finance, insurance and other, net

 

44,523

 

36,305

 

22.6

 

27.9

Total 

 

$       225,253

 

$       192,982

 

16.7

 

22.4

                 

UNITS SOLD:

               

Retail new vehicles sold

 

36,571

 

31,574

 

15.8

   

Retail used vehicles sold

 

24,623

 

18,830

 

30.8

   

Wholesale used vehicles sold

 

18,334

 

15,108

 

21.4

   

Total used

 

42,957

 

33,938

 

26.6

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$         29,876

 

$         31,277

 

(4.5)

 

0.1

Used vehicle retail

 

$         22,185

 

$         23,059

 

(3.8)

 

1.1

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$           1,657

 

$           1,794

 

(7.6)

 

(3.4)

Used vehicle retail sales

 

1,067

 

1,159

 

(7.9)

 

(2.9)

Used vehicle wholesale sales

 

(64)

 

(78)

 

17.9

 

24.0

Total used

 

584

 

608

 

(3.9)

 

1.9

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

 

$              728

 

$              720

 

1.1

 

5.3

                 

OTHER: 

               

SG&A expenses

 

$       191,570

 

$       158,636

 

20.8

 

26.3

Adjusted SG&A expenses(1)

 

$       191,282

 

$       157,730

 

21.3

 

26.8

SG&A as % revenues

 

9.6

 

9.2

       

Adjusted SG&A as % revenues (1)

 

9.6

 

9.2

       

SG&A as % gross profit

 

85.0

 

82.2

       

Adjusted SG&A as % gross profit (1)

 

84.9

 

81.7

       

Operating margin %

 

1.3

 

1.6

       

Adjusted operating margin % (1)

 

1.3

 

1.7

       

Pretax margin %

 

0.9

 

1.1

       

Adjusted pretax margin % (1)

 

0.9

 

1.1

       
                 

INTEREST EXPENSE:

               

Floorplan interest expense

 

$         (4,727)

 

$         (4,222)

 

12.0

 

16.8

Floorplan assistance

 

951

 

825

 

15.3

 

22.1

Net floorplan expense

 

$         (3,776)

 

$         (3,397)

 

11.2

 

15.6

Other interest expense, net

 

$         (3,664)

 

$         (5,197)

 

(29.5)

 

(26.5)

                 
   

(1)

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

 

Group 1 Automotive, Inc.

Additional Information - Brazil

(Unaudited)

(Dollars in thousands, except per unit amounts)

                 
   

Three Months Ended December 31,

   

2017

 

2016

 

% Increase/

(Decrease)

 

Constant Currency (1)

% Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$   82,947

 

$   76,760

 

8.1

 

6.2

Used vehicle retail sales

 

24,129

 

23,828

 

1.3

 

(0.4)

Used vehicle wholesale sales

 

4,282

 

1,058

 

304.7

 

296.6

Total used

 

28,411

 

24,886

 

14.2

 

12.2

Parts and service

 

11,761

 

11,751

 

0.1

 

(1.5)

Finance, insurance and other, net

 

2,242

 

1,809

 

23.9

 

22.0

Total

 

$ 125,361

 

$ 115,206

 

8.8

 

7.0

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.8

 

6.1

       

Used vehicle retail sales

 

7.8

 

7.0

       

Used vehicle wholesale sales

 

4.4

 

4.8

       

Total used

 

7.3

 

6.9

       

Parts and service

 

45.9

 

44.7

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

11.6

 

11.7

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$     4,849

 

$     4,659

 

4.1

 

2.5

Used vehicle retail sales

 

1,887

 

1,672

 

12.9

 

11.1

Used vehicle wholesale sales

 

189

 

51

 

270.6

 

264.3

Total used

 

2,076

 

1,723

 

20.5

 

18.6

Parts and service

 

5,403

 

5,257

 

2.8

 

1.0

Finance, insurance and other, net

 

2,242

 

1,809

 

23.9

 

22.0

Total 

 

$   14,570

 

$   13,448

 

8.3

 

6.6

                 

UNITS SOLD:

               

Retail new vehicles sold

 

2,355

 

2,372

 

(0.7)

   

Retail used vehicles sold

 

1,092

 

1,082

 

0.9

   

Wholesale used vehicles sold

 

290

 

367

 

(21.0)

   

Total used

 

1,382

 

1,449

 

(4.6)

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$   35,222

 

$   32,361

 

8.8

 

7.0

Used vehicle retail

 

$   22,096

 

$   22,022

 

0.3

 

(1.3)

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$     2,059

 

$     1,964

 

4.8

 

3.3

Used vehicle retail sales

 

1,728

 

1,545

 

11.8

 

10.1

Used vehicle wholesale sales

 

652

 

139

 

369.1

 

361.1

Total used

 

1,502

 

1,189

 

26.3

 

24.4

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

 

$        650

 

$        524

 

24.0

 

22.3

                 

OTHER: 

               

SG&A expenses

 

$   13,356

 

$   12,178

 

9.7

 

8.1

Adjusted SG&A expenses(1)

 

$   12,881

 

$   12,178

 

5.8

 

4.2

SG&A as % revenues

 

10.7

 

10.6

       

Adjusted SG&A as % revenues (1)

 

10.3

 

10.6

       

SG&A as % gross profit

 

91.7

 

90.6

       

Adjusted SG&A as % gross profit (1)

 

88.4

 

90.6

       

Operating margin %

 

(4.7)

 

(8.2)

       

Adjusted operating margin % (1)

 

1.1

 

0.8

       

Pretax margin %

 

(4.9)

 

(8.5)

       

Adjusted pretax margin % (1)

 

0.9

 

0.5

       
                 

INTEREST EXPENSE:

               

Floorplan interest expense

 

$      (142)

 

$        (89)

 

59.6

 

54.4

Floorplan assistance

 

 

 

-

 

-

Net floorplan expense

 

$      (142)

 

$        (89)

 

59.6

 

54.4

Other interest expense, net

 

$      (109)

 

$      (237)

 

(54.0)

 

(54.4)

                 
                 
   

Twelve Months Ended December 31,

   

2017

 

2016

 

% Increase/

(Decrease)

 

Constant Currency (1)

% Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$ 296,055

 

$ 292,490

 

1.2

 

(6.7)

Used vehicle retail sales

 

92,021

 

81,002

 

13.6

 

4.4

Used vehicle wholesale sales

 

12,655

 

3,406

 

271.6

 

243.3

Total used

 

104,676

 

84,408

 

24.0

 

14.1

Parts and service

 

47,897

 

46,294

 

3.5

 

(4.8)

Finance, insurance and other, net

 

8,525

 

6,593

 

29.3

 

19.3

Total 

 

$ 457,153

 

$ 429,785

 

6.4

 

(2.0)

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.8

 

5.8

       

Used vehicle retail sales

 

7.3

 

6.1

       

Used vehicle wholesale sales

 

6.8

 

5.2

       

Total used

 

7.3

 

6.1

       

Parts and service

 

45.2

 

39.0

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

12.0

 

10.9

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$   17,138

 

$   16,950

 

1.1

 

(6.7)

Used vehicle retail sales

 

6,751

 

4,944

 

36.5

 

28.4

Used vehicle wholesale sales

 

858

 

178

 

382.0

 

346.9

Total used

 

7,609

 

5,122

 

48.6

 

39.4

Parts and service

 

21,670

 

18,073

 

19.9

 

10.4

Finance, insurance and other, net

 

8,525

 

6,593

 

29.3

 

19.3

Total 

 

$   54,942

 

$   46,738

 

17.6

 

8.6

                 

UNITS SOLD:

               

Retail new vehicles sold

 

8,488

 

10,008

 

(15.2)

   

Retail used vehicles sold

 

4,140

 

4,547

 

(9.0)

   

Wholesale used vehicles sold

 

1,148

 

1,222

 

(6.1)

   

Total used

 

5,288

 

5,769

 

(8.3)

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$   34,879

 

$   29,226

 

19.3

 

10.1

Used vehicle retail

 

$   22,227

 

$   17,814

 

24.8

 

14.7

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$     2,019

 

$     1,694

 

19.2

 

10.0

Used vehicle retail sales

 

1,631

 

1,087

 

50.0

 

41.0

Used vehicle wholesale sales

 

747

 

146

 

411.6

 

375.8

Total used

 

1,439

 

888

 

62.0

 

52.1

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

 

$        675

 

$        453

 

49.0

 

37.5

                 

OTHER: 

               

SG&A expenses

 

$   50,651

 

$   46,988

 

7.8

 

(0.7)

Adjusted SG&A expenses(1)

 

$   50,176

 

$   46,342

 

8.3

 

(0.2)

SG&A as % revenues

 

11.1

 

10.9

       

Adjusted SG&A as % revenues (1)

 

11.0

 

10.8

       

SG&A as % gross profit

 

92.2

 

100.5

       

Adjusted SG&A as % gross profit (1)

 

91.3

 

99.2

       

Operating margin %

 

(0.9)

 

(2.9)

       

Adjusted operating margin % (1)

 

0.7

 

(0.2)

       

Pretax margin %

 

(1.0)

 

(3.0)

       

Adjusted pretax margin % (1)

 

0.6

 

(0.3)

       
                 

INTEREST EXPENSE:

               

Floorplan interest expense

 

$      (424)

 

$      (261)

 

62.5

 

51.4

Floorplan assistance

 

 

 

-

 

-

Net floorplan expense

 

$      (424)

 

$      (261)

 

62.5

 

51.4

Other interest expense, net

 

$      (340)

 

$      (418)

 

(18.7)

 

(25.0)

                 
   

(1)

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

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

(Dollars in thousands, except per unit amounts)

                 
   

Three Months Ended December 31,

   

2017

 

2016

 

% Increase/

(Decrease)

 

Constant Currency % (1)

Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$   1,661,309

 

$   1,507,513

 

10.2

 

9.0

Used vehicle retail sales

 

709,072

 

651,144

 

8.9

 

7.4

Used vehicle wholesale sales

 

91,809

 

99,774

 

(8.0)

 

(10.4)

Total used

 

800,881

 

750,918

 

6.7

 

5.1

Parts and service

 

343,510

 

310,966

 

10.5

 

9.5

Finance, insurance and other, net

 

114,705

 

104,235

 

10.0

 

9.2

Total

 

$   2,920,405

 

$   2,673,632

 

9.2

 

7.9

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.4

 

5.5

       

Used vehicle retail sales

 

5.7

 

6.0

       

Used vehicle wholesale sales

 

(2.6)

 

(4.0)

       

Total used

 

4.8

 

4.7

       

Parts and service

 

53.4

 

53.6

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

14.6

 

14.6

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$        89,535

 

$        83,068

 

7.8

 

6.5

Used vehicle retail sales

 

40,514

 

39,046

 

3.8

 

2.6

Used vehicle wholesale sales

 

(2,390)

 

(3,980)

 

39.9

 

40.4

Total used

 

38,124

 

35,066

 

8.7

 

7.5

Parts and service

 

183,311

 

166,812

 

9.9

 

8.9

Finance, insurance and other, net

 

114,705

 

104,235

 

10.0

 

9.2

Total 

 

$      425,675

 

$      389,181

 

9.4

 

8.3

                 

UNITS SOLD:

               

Retail new vehicles sold

 

44,713

 

42,031

 

6.4

   

Retail used vehicles sold

 

32,015

 

30,377

 

5.4

   

Wholesale used vehicles sold

 

13,573

 

14,262

 

(4.8)

   

Total used

 

45,588

 

44,639

 

2.1

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$        37,155

 

$        35,867

 

3.6

 

2.4

Used vehicle retail

 

$        22,148

 

$        21,435

 

3.3

 

1.9

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$          2,002

 

$          1,976

 

1.3

 

0.1

Used vehicle retail sales

 

1,265

 

1,285

 

(1.6)

 

(2.6)

Used vehicle wholesale sales

 

(176)

 

(279)

 

36.9

 

37.3

Total used

 

836

 

786

 

6.4

 

5.2

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

 

$          1,495

 

$          1,440

 

3.8

 

3.0

                 

OTHER: 

               

SG&A expenses

 

$      309,521

 

$      279,071

 

10.9

 

9.6

Adjusted SG&A expenses (1)

 

$      309,046

 

$      289,542

 

6.7

 

5.5

SG&A as % revenues

 

10.6

 

10.4

       

Adjusted SG&A as % revenues (1)

 

10.6

 

10.8

       

SG&A as % gross profit

 

72.7

 

71.7

       

Adjusted SG&A as % gross profit (1)

 

72.6

 

74.4

       

Operating margin %

 

3.1

 

2.9

       

Adjusted operating margin % (1)

 

3.5

 

3.2

       

Pretax margin %

 

2.0

 

1.8

       

Adjusted pretax margin % (1)

 

2.4

 

2.2

       
                 

INTEREST EXPENSE:

               

Floorplan interest expense

 

$      (13,713)

 

$      (11,189)

 

22.6

 

21.8

Floorplan assistance

 

13,189

 

12,383

 

6.5

 

6.4

Net floorplan (expense) income

 

$           (524)

 

$          1,194

 

(143.9)

 

(137.7)

Other interest expense, net

 

$      (18,309)

 

$      (17,208)

 

6.4

 

5.9

                 
                 
   

Twelve Months Ended December 31,

   

2017

 

2016

 

% Increase/ (Decrease)

 

Constant Currency %(1)

Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$   6,157,531

 

$   6,046,075

 

1.8

 

2.3

Used vehicle retail sales

 

2,798,986

 

2,757,713

 

1.5

 

2.2

Used vehicle wholesale sales

 

400,170

 

3,159,576

 

(0.4)

 

1.1

Total used

 

3,199,156

 

3,159,576

 

1.3

 

2.1

Parts and service

 

1,338,032

 

1,261,307

 

6.1

 

6.4

Finance, insurance and other, net

 

429,002

 

420,654

 

2.0

 

2.3

Total 

 

$ 11,123,721

 

$ 10,887,612

 

2.2

 

2.7

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.2

 

5.2

       

Used vehicle retail sales

 

6.3

 

6.6

       

Used vehicle wholesale sales

 

(0.7)

 

(1.1)

       

Total used

 

5.5

 

5.6

       

Parts and service

 

53.8

 

53.9

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

14.8

 

14.7

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$      322,005

 

$      316,378

 

1.8

 

2.2

Used vehicle retail sales

 

177,555

 

182,479

 

(2.7)

 

(2.1)

Used vehicle wholesale sales

 

(2,742)

 

(4,442)

 

38.3

 

38.8

Total used

 

174,813

 

178,037

 

(1.8)

 

(1.2)

Parts and service

 

719,689

 

680,000

 

5.8

 

6.3

Finance, insurance and other, net

 

429,002

 

420,654

 

2.0

 

2.3

Total 

 

$   1,645,509

 

$   1,595,069

 

3.2

 

3.6

                 

UNITS SOLD:

               

Retail new vehicles sold

 

172,200

 

172,053

 

0.1

   

Retail used vehicles sold

 

129,933

 

129,131

 

0.6

   

Wholesale used vehicles sold

 

57,144

 

57,339

 

(0.3)

   

Total used

 

187,077

 

186,470

 

0.3

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$        35,758

 

$        35,141

 

1.8

 

2.2

Used vehicle retail

 

$        21,542

 

$        21,356

 

0.9

 

1.6

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$          1,870

 

$          1,839

 

1.7

 

2.2

Used vehicle retail sales

 

1,367

 

1,413

 

(3.3)

 

(2.7)

Used vehicle wholesale sales

 

(48)

 

(77)

 

37.7

 

38.5

Total used

 

934

 

955

 

(2.2)

 

(1.5)

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

 

$          1,420

 

$          1,397

 

1.6

 

2.0

                 

OTHER: 

               

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

 

$      435,552

 

$      420,654

 

3.5

 

3.8

Adjusted Total Revenue (1) 

 

$ 11,130,271

 

$ 10,887,612

 

2.2

 

2.8

Adjusted Total Gross Profit (1) 

 

$   1,652,059

 

$   1,595,069

 

3.6

 

4.0

Adjusted Total Gross Margin (1) 

 

14.8

 

14.7

       

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

 

$          1,442

 

$          1,397

 

3.2

 

3.5

SG&A expenses

 

$   1,226,195

 

$   1,170,763

 

4.7

 

5.1

Adjusted SG&A expenses (1)

 

$   1,216,955

 

$   1,175,980

 

3.5

 

3.9

SG&A as % revenues

 

11.0

 

10.8

       

Adjusted SG&A as % revenues (1)

 

10.9

 

10.8

       

SG&A as % gross profit

 

74.5

 

73.4

       

Adjusted SG&A as % gross profit (1)

 

73.7

 

73.7

       

Operating margin %

 

3.1

 

3.1

       

Adjusted operating margin % (1)

 

3.4

 

3.4

     

17.0

Pretax margin %

 

2.0

 

2.1

     

(0.4)

Adjusted pretax margin % (1)

 

2.3

 

2.3

     

(183.3)

               

4.0

INTEREST EXPENSE:

               

Floorplan interest expense

 

$      (52,372)

 

$      (44,927)

 

16.6

 

17.0

Floorplan assistance

 

48,935

 

49,202

 

(0.5)

 

(0.4)

Net floorplan (expense) income 

 

$        (3,437)

 

$          4,275

 

(180.4)

 

(183.3)

Other interest expense, net

 

$      (70,497)

 

$      (67,936)

 

3.8

 

4.0

                 
   

(1)

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

(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 December 31,

   

2017

 

2016

 

% Increase/

(Decrease)

REVENUES:

           

New vehicle retail sales

 

$ 1,290,879

 

$ 1,207,538

 

6.9

Used vehicle retail sales

 

532,189

 

532,880

 

(0.1)

Used vehicle wholesale sales

 

49,602

 

70,621

 

(29.8)

Total used

 

581,791

 

603,501

 

(3.6)

Parts and service

 

283,561

 

266,011

 

6.6

Finance, insurance and other, net

 

97,536

 

92,661

 

5.3

Total 

 

$ 2,253,767

 

$ 2,169,711

 

3.9

             

GROSS MARGIN %:

           

New vehicle retail sales

 

5.3

 

5.4

   

Used vehicle retail sales

 

5.9

 

6.2

   

Used vehicle wholesale sales

 

(4.5)

 

(3.9)

   

Total used

 

5.0

 

5.0

   

Parts and service

 

53.1

 

53.8

   

Finance, insurance and other, net

 

100.0

 

100.0

   

Total

 

15.3

 

15.2

   
             

GROSS PROFIT:

           

New vehicle retail sales

 

$      68,391

 

$      64,974

 

5.3

Used vehicle retail sales

 

31,474

 

32,871

 

(4.2)

Used vehicle wholesale sales

 

(2,222)

 

(2,750)

 

19.2

Total used

 

29,252

 

30,121

 

(2.9)

Parts and service

 

150,672

 

143,046

 

5.3

Finance, insurance and other, net

 

97,536

 

92,661

 

5.3

Total 

 

$    345,851

 

$    330,802

 

4.5

             

UNITS SOLD:

           

Retail new vehicles sold

 

33,157

 

31,765

 

4.4

Retail used vehicles sold

 

24,386

 

24,864

 

(1.9)

Wholesale used vehicles sold

 

8,100

 

10,090

 

(19.7)

Total used

 

32,486

 

34,954

 

(7.1)

             

AVERAGE RETAIL SALES PRICE:

           

New vehicle retail

 

$      38,932

 

$      38,015

 

2.4

Used vehicle retail

 

$      21,824

 

$      21,432

 

1.8

             

GROSS PROFIT PER UNIT SOLD:

           

New vehicle retail sales

 

$        2,063

 

$        2,045

 

0.9

Used vehicle retail sales

 

1,291

 

1,322

 

(2.3)

Used vehicle wholesale sales

 

(274)

 

(273)

 

(0.4)

Total used

 

900

 

862

 

4.4

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

 

$        1,695

 

$        1,636

 

3.6

             

OTHER: 

           

SG&A expenses

 

$    238,151

 

$    229,946

 

3.6

Adjusted SG&A expenses(2)

 

$    238,151

 

$    237,973

 

0.1

SG&A as % revenues

 

10.6

 

10.6

   

Adjusted SG&A as % revenues (2)

 

10.6

 

11.0

   

SG&A as % gross profit

 

68.9

 

69.5

   

Adjusted SG&A as % gross profit (2)

 

68.9

 

71.9

   

Operating margin %

 

4.1

 

3.7

   

Adjusted operating margin % (2)

 

4.2

 

3.8

   
             
   

Twelve Months Ended December 31,

   

2017

 

2016

 

% Increase/

(Decrease)

REVENUES:

           

New vehicle retail sales

 

$ 4,732,177

 

$ 4,713,124

 

0.4

Used vehicle retail sales

 

2,146,803

 

2,217,717

 

(3.2)

Used vehicle wholesale sales

 

248,922

 

272,623

 

(8.7)

Total used

 

2,395,725

 

2,490,340

 

(3.8)

Parts and service

 

1,118,749

 

1,062,465

 

5.3

Finance, insurance and other, net

 

372,001

 

372,581

 

(0.2)

Total 

 

$ 8,618,652

 

$ 8,638,510

 

(0.2)

             

GROSS MARGIN %:

           

New vehicle retail sales

 

5.1

 

5.1

   

Used vehicle retail sales

 

6.7

 

6.9

   

Used vehicle wholesale sales

 

(1.0)

 

(1.1)

   

Total used

 

5.9

 

6.1

   

Parts and service

 

53.6

 

54.3

   

Finance, insurance and other, net

 

100.0

 

100.0

   

Total

 

15.7

 

15.5

   
             

GROSS PROFIT:

           

New vehicle retail sales

 

$    242,301

 

$    240,528

 

0.7

Used vehicle retail sales

 

143,688

 

153,911

 

(6.6)

Used vehicle wholesale sales

 

(2,452)

 

(2,964)

 

17.3

Total used

 

141,236

 

150,947

 

(6.4)

Parts and service

 

599,933

 

576,925

 

4.0

Finance, insurance and other, net

 

372,001

 

372,581

 

(0.2)

Total 

 

$ 1,355,471

 

$ 1,340,981

 

1.1

             

UNITS SOLD:

           

Retail new vehicles sold

 

126,247

 

128,441

 

(1.7)

Retail used vehicles sold

 

100,542

 

104,451

 

(3.7)

Wholesale used vehicles sold

 

37,415

 

40,361

 

(7.3)

Total used

 

137,957

 

144,812

 

(4.7)

             

AVERAGE RETAIL SALES PRICE:

           

New vehicle retail

 

$      37,483

 

$      36,695

 

2.1

Used vehicle retail

 

$      21,352

 

$      21,232

 

0.6

             

GROSS PROFIT PER UNIT SOLD:

           

New vehicle retail sales

 

$        1,919

 

$        1,873

 

2.5

Used vehicle retail sales

 

1,429

 

1,474

 

(3.1)

Used vehicle wholesale sales

 

(66)

 

(73)

 

9.6

Total used

 

1,024

 

1,042

 

(1.7)

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

 

$        1,640

 

$        1,600

 

2.5

             

OTHER: 

           

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

 

$    378,551

 

$    372,581

 

1.6

Adjusted Total Revenue (2) 

 

$ 8,625,202

 

$ 8,638,510

 

(0.2)

Adjusted Total Gross Profit (2)

 

$ 1,362,021

 

$ 1,340,981

 

1.6

Adjusted Total Gross Margin (2)

 

15.8

 

15.5

   

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

 

$        1,669

 

$        1,600

 

4.3

SG&A expenses

 

$    975,701

 

$    955,108

 

2.2

Adjusted SG&A expenses (2)

 

$    967,224

 

$    956,848

 

1.1

SG&A as % revenues

 

11.3

 

11.1

   

Adjusted SG&A as % revenues (2)

 

11.2

 

11.1

   

SG&A as % gross profit

 

72.0

 

71.2

   

Adjusted SG&A as % gross profit (2)

 

71.0

 

71.4

   

Operating margin %

 

3.7

 

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 profit 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 December 31,

   

2017

 

2016

 

% Increase/

(Decrease)

 

Constant Currency (2)

% Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$    224,123

 

$    221,036

 

1.4

 

(5.0)

Used vehicle retail sales

 

111,186

 

93,314

 

19.2

 

11.6

Used vehicle wholesale sales

 

28,518

 

27,158

 

5.0

 

(1.6)

Total used

 

139,704

 

120,472

 

16.0

 

8.6

Parts and service

 

36,664

 

32,768

 

11.9

 

4.8

Finance, insurance and other, net

 

11,264

 

9,245

 

21.8

 

13.9

Total 

 

$    411,755

 

$    383,521

 

7.4

 

0.5

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.7

 

6.0

       

Used vehicle retail sales

 

4.6

 

4.7

       

Used vehicle wholesale sales

 

(1.2)

 

(4.5)

       

Total used

 

3.4

 

2.7

       

Parts and service

 

56.2

 

55.9

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

12.0

 

11.5

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$      12,773

 

$      13,217

 

(3.4)

 

(9.6)

Used vehicle retail sales

 

5,099

 

4,424

 

15.3

 

8.0

Used vehicle wholesale sales

 

(336)

 

(1,215)

 

72.3

 

73.9

Total used

 

4,763

 

3,209

 

48.4

 

39.0

Parts and service

 

20,610

 

18,332

 

12.4

 

5.3

Finance, insurance and other, net

 

11,264

 

9,245

 

21.8

 

13.9

Total 

 

$      49,410

 

$      44,003

 

12.3

 

5.1

                 

UNITS SOLD:

               

Retail new vehicles sold

 

7,201

 

7,763

 

(7.2)

   

Retail used vehicles sold

 

4,617

 

4,344

 

6.3

   

Wholesale used vehicles sold

 

3,822

 

3,625

 

5.4

   

Total used

 

8,439

 

7,969

 

5.9

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$      31,124

 

$      28,473

 

9.3

 

2.4

Used vehicle retail

 

$      24,082

 

$      21,481

 

12.1

 

5.0

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$        1,774

 

$        1,703

 

4.2

 

(2.6)

Used vehicle retail sales

 

1,104

 

1,018

 

8.4

 

1.6

Used vehicle wholesale sales

 

(88)

 

(335)

 

73.7

 

75.2

Total used

 

564

 

403

 

40.0

 

31.2

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

 

$           953

 

$           764

 

24.7

 

16.7

                 

OTHER: 

               

SG&A expenses

 

$      43,033

 

$      38,468

 

11.9

 

4.7

Adjusted SG&A expenses(2)

 

$      43,033

 

$      38,285

 

12.4

 

5.2

SG&A as % revenues

 

10.5

 

10.0

       

Adjusted SG&A as % revenues (2)

 

10.5

 

10.0

       

SG&A as % gross profit

 

87.1

 

87.4

       

Adjusted SG&A as % gross profit (2)

 

87.1

 

87.0

       

Operating margin %

 

1.1

 

1.0

       

Adjusted operating margin % (2)

 

1.1

 

1.1

       
                 
   

Twelve Months Ended December 31,

   

2017

 

2016

 

% Increase/ (Decrease)

 

Constant Currency (2)

% Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$    943,182

 

$    967,424

 

(2.5)

 

2.2

Used vehicle retail sales

 

447,777

 

419,455

 

6.8

 

12.2

Used vehicle wholesale sales

 

113,082

 

116,519

 

(2.9)

 

1.9

Total used

 

560,859

 

535,974

 

4.6

 

10.0

Parts and service

 

138,143

 

137,800

 

0.2

 

5.0

Finance, insurance and other, net

 

37,762

 

35,582

 

6.1

 

10.7

Total 

 

$ 1,679,946

 

$ 1,676,780

 

0.2

 

5.1

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.6

 

5.8

       

Used vehicle retail sales

 

4.9

 

5.1

       

Used vehicle wholesale sales

 

(0.7)

 

(1.0)

       

Total used

 

3.8

 

3.8

       

Parts and service

 

57.2

 

55.3

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

11.4

 

11.2

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$      52,962

 

$      55,921

 

(5.3)

 

(0.8)

Used vehicle retail sales

 

22,147

 

21,350

 

3.7

 

9.6

Used vehicle wholesale sales

 

(831)

 

(1,122)

 

25.9

 

33.2

Total used

 

21,316

 

20,228

 

5.4

 

12.0

Parts and service

 

79,083

 

76,235

 

3.7

 

8.6

Finance, insurance and other, net

 

37,762

 

35,582

 

6.1

 

10.7

Total 

 

$    191,123

 

$    187,966

 

1.7

 

6.6

                 

UNITS SOLD:

               

Retail new vehicles sold

 

31,054

 

30,719

 

1.1

   

Retail used vehicles sold

 

19,632

 

18,062

 

8.7

   

Wholesale used vehicles sold

 

14,861

 

14,428

 

3.0

   

Total used

 

34,493

 

32,490

 

6.2

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$      30,372

 

$      31,493

 

(3.6)

 

1.1

Used vehicle retail

 

$      22,809

 

$      23,223

 

(1.8)

 

3.3

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$        1,705

 

$        1,820

 

(6.3)

 

(1.9)

Used vehicle retail sales

 

1,128

 

1,182

 

(4.6)

 

0.8

Used vehicle wholesale sales

 

(56)

 

(78)

 

28.2

 

35.2

Total used

 

618

 

623

 

(0.8)

 

5.5

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

 

$           745

 

$           729

 

2.2

 

6.5

                 

OTHER: 

               

SG&A expenses

 

$    156,369

 

$    150,626

 

3.8

 

8.4

Adjusted SG&A expenses(2)

 

$    156,081

 

$    149,882

 

4.1

 

8.7

SG&A as % revenues

 

9.3

 

9.0

       

Adjusted SG&A as % revenues (2)

 

9.3

 

8.9

       

SG&A as % gross profit

 

81.8

 

80.1

       

Adjusted SG&A as % gross profit (2)

 

81.7

 

79.7

       

Operating margin %

 

1.7

 

1.8

       

Adjusted operating margin % (2)

 

1.7

 

1.9

       
                 
   

(1)

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

(2)

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

 

Group 1 Automotive, Inc.

Additional Information - Same Store Brazil (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)

                 
   

Three Months Ended December 31,

   

2017

 

2016

 

% Increase/

(Decrease)

 

Constant Currency (2)

% Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$   82,548

 

$   70,759

 

16.7

 

14.7

Used vehicle retail sales

 

22,173

 

21,755

 

1.9

 

0.2

Used vehicle wholesale sales

 

3,897

 

1,058

 

268.3

 

260.5

Total used

 

26,070

 

22,813

 

14.3

 

12.2

Parts and service

 

11,650

 

10,617

 

9.7

 

8.0

Finance, insurance and other, net

 

2,230

 

1,674

 

33.2

 

31.1

Total 

 

$ 122,498

 

$ 105,863

 

15.7

 

13.8

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.8

 

6.0

       

Used vehicle retail sales

 

8.0

 

7.0

       

Used vehicle wholesale sales

 

4.8

 

4.9

       

Total used

 

7.5

 

6.9

       

Parts and service

 

46.2

 

45.2

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

11.7

 

11.6

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$     4,803

 

$     4,258

 

12.8

 

11.1

Used vehicle retail sales

 

1,780

 

1,515

 

17.5

 

15.6

Used vehicle wholesale sales

 

186

 

52

 

257.7

 

257.5

Total used

 

1,966

 

1,567

 

25.5

 

23.5

Parts and service

 

5,377

 

4,795

 

12.1

 

10.1

Finance, insurance and other, net

 

2,230

 

1,674

 

33.2

 

31.1

Total 

 

$   14,376

 

$   12,294

 

16.9

 

15.0

                 

UNITS SOLD:

               

Retail new vehicles sold

 

2,334

 

2,108

 

10.7

   

Retail used vehicles sold

 

1,049

 

958

 

9.5

   

Wholesale used vehicles sold

 

274

 

300

 

(8.7)

   

Total used

 

1,323

 

1,258

 

5.2

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$   35,368

 

$   33,567

 

5.4

 

3.6

Used vehicle retail

 

$   21,137

 

$   22,709

 

(6.9)

 

(8.5)

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$     2,058

 

$     2,020

 

1.9

 

0.3

Used vehicle retail sales

 

1,697

 

1,581

 

7.3

 

5.6

Used vehicle wholesale sales

 

679

 

173

 

292.5

 

291.5

Total used

 

1,486

 

1,246

 

19.3

 

17.4

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

 

$        659

 

$        546

 

20.7

 

18.8

                 

OTHER: 

               

SG&A expenses

 

$   13,233

 

$   11,124

 

19.0

 

17.2

Adjusted SG&A expenses(2)

 

$   12,758

 

$   11,124

 

14.7

 

12.9

SG&A as % revenues

 

10.8

 

10.5

       

Adjusted SG&A as % revenues (2)

 

10.4

 

10.5

       

SG&A as % gross profit

 

92.0

 

90.5

       

Adjusted SG&A as % gross profit (2)

 

88.7

 

90.5

       

Operating margin %

 

(4.9)

 

(9.1)

       

Adjusted operating margin % (2)

 

1.0

 

0.8

       
                 
   

Twelve Months Ended December 31,

   

2017

 

2016

 

% Increase/

(Decrease)

 

Constant Currency (2)

% Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$ 287,190

 

$ 270,923

 

6.0

 

(2.2)

Used vehicle retail sales

 

86,298

 

72,549

 

19.0

 

9.6

Used vehicle wholesale sales

 

12,144

 

2,929

 

314.6

 

287.3

Total used

 

98,442

 

75,478

 

30.4

 

20.4

Parts and service

 

45,944

 

39,623

 

16.0

 

7.2

Finance, insurance and other, net

 

8,142

 

5,852

 

39.1

 

28.9

Total 

 

$ 439,718

 

$ 391,876

 

12.2

 

3.6

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.8

 

5.8

       

Used vehicle retail sales

 

7.5

 

6.2

       

Used vehicle wholesale sales

 

6.9

 

6.5

       

Total used

 

7.4

 

6.3

       

Parts and service

 

45.9

 

40.7

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

12.1

 

10.8

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$   16,662

 

$   15,652

 

6.5

 

(1.7)

Used vehicle retail sales

 

6,488

 

4,533

 

43.1

 

34.6

Used vehicle wholesale sales

 

838

 

190

 

341.1

 

311.2

Total used

 

7,326

 

4,723

 

55.1

 

45.7

Parts and service

 

21,100

 

16,110

 

31.0

 

21.1

Finance, insurance and other, net

 

8,142

 

5,852

 

39.1

 

28.9

Total 

 

$   53,230

 

$   42,337

 

25.7

 

16.4

                 

UNITS SOLD:

               

Retail new vehicles sold

 

8,198

 

8,798

 

(6.8)

   

Retail used vehicles sold

 

3,974

 

3,859

 

3.0

   

Wholesale used vehicles sold

 

997

 

934

 

6.7

   

Total used

 

4,971

 

4,793

 

3.7

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$   35,032

 

$   30,794

 

13.8

 

5.0

Used vehicle retail

 

$   21,716

 

$   18,800

 

15.5

 

6.4

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$     2,032

 

$     1,779

 

14.2

 

5.5

Used vehicle retail sales

 

1,633

 

1,175

 

39.0

 

30.7

Used vehicle wholesale sales

 

841

 

203

 

314.3

 

285.3

Total used

 

1,474

 

985

 

49.6

 

40.5

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

 

$        669

 

$        462

 

44.8

 

34.0

                 

OTHER: 

               

SG&A expenses

 

$   47,926

 

$   40,315

 

18.9

 

10.1

Adjusted SG&A expenses(2)

 

$   47,451

 

$   40,041

 

18.5

 

9.7

SG&A as % revenues

 

10.9

 

10.3

       

Adjusted SG&A as % revenues (2)

 

10.8

 

10.2

       

SG&A as % gross profit

 

90.0

 

95.2

       

Adjusted SG&A as % gross profit (2)

 

89.1

 

94.6

       

Operating margin %

 

(0.6)

 

(2.4)

       

Adjusted operating margin % (2)

 

1.0

 

0.3

       
                 
   

(1)

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

(2)

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

 

Group 1 Automotive, Inc.

Additional Information - Same Store Consolidated (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)

                 
   

Three Months Ended December 31,

   

2017

 

2016

 

% Increase/

(Decrease)

 

Constant Currency (2)

% Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$    1,597,550

 

$    1,499,333

 

6.6

 

5.5

Used vehicle retail sales

 

665,548

 

647,949

 

2.7

 

1.6

Used vehicle wholesale sales

 

82,017

 

98,837

 

(17.0)

 

(18.9)

Total used

 

747,565

 

746,786

 

0.1

 

(1.1)

Parts and service

 

331,875

 

309,396

 

7.3

 

6.5

Finance, insurance and other, net

 

111,030

 

103,580

 

7.2

 

6.5

Total 

 

$    2,788,020

 

$    2,659,095

 

4.8

 

3.8

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.4

 

5.5

       

Used vehicle retail sales

 

5.8

 

6.0

       

Used vehicle wholesale sales

 

(2.9)

 

(4.0)

       

Total used

 

4.8

 

4.7

       

Parts and service

 

53.2

 

53.7

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

14.7

 

14.6

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$         85,967

 

$         82,449

 

4.3

 

3.2

Used vehicle retail sales

 

38,353

 

38,810

 

(1.2)

 

(2.1)

Used vehicle wholesale sales

 

(2,372)

 

(3,913)

 

39.4

 

39.8

Total used

 

35,981

 

34,897

 

3.1

 

2.1

Parts and service

 

176,659

 

166,173

 

6.3

 

5.5

Finance, insurance and other, net

 

111,030

 

103,580

 

7.2

 

6.5

Total 

 

$       409,637

 

$       387,099

 

5.8

 

4.9

                 

UNITS SOLD:

               

Retail new vehicles sold

 

42,692

 

41,636

 

2.5

   

Retail used vehicles sold

 

30,052

 

30,166

 

(0.4)

   

Wholesale used vehicles sold

 

12,196

 

14,015

 

(13.0)

   

Total used

 

42,248

 

44,181

 

(4.4)

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$         37,420

 

$         36,010

 

3.9

 

2.9

Used vehicle retail

 

$         22,147

 

$         21,479

 

3.1

 

2.0

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$           2,014

 

$           1,980

 

1.7

 

0.6

Used vehicle retail sales

 

1,276

 

1,287

 

(0.9)

 

(1.7)

Used vehicle wholesale sales

 

(194)

 

(279)

 

30.5

 

30.8

Total used

 

852

 

790

 

7.8

 

6.8

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

 

$           1,526

 

$           1,443

 

5.8

 

5.1

                 

OTHER: 

               

SG&A expenses

 

$       294,417

 

$       279,538

 

5.3

 

4.3

Adjusted SG&A expenses(2)

 

$       293,942

 

$       287,382

 

2.3

 

1.3

SG&A as % revenues

 

10.6

 

10.5

       

Adjusted SG&A as % revenues (2)

 

10.5

 

10.8

       

SG&A as % gross profit

 

71.9

 

72.2

       

Adjusted SG&A as % gross profit (2)

 

71.8

 

74.2

       

Operating margin %

 

3.3

 

2.8

       

Adjusted operating margin % (2)

 

3.6

 

3.3

       
                 
   

Twelve Months Ended December 31,

   

2017

 

2016

 

% Increase/ (Decrease)

 

Constant Currency (2)     % Increase/ (Decrease)

REVENUES:

               

New vehicle retail sales

 

$    5,962,549

 

$    5,951,471

 

0.2

 

0.6

Used vehicle retail sales

 

2,680,878

 

2,709,721

 

(1.1)

 

(0.5)

Used vehicle wholesale sales

 

374,148

 

392,071

 

(4.6)

 

(3.3)

Total used

 

3,055,026

 

3,101,792

 

(1.5)

 

(0.8)

Parts and service

 

1,302,836

 

1,239,888

 

5.1

 

5.3

Finance, insurance and other, net

 

417,905

 

414,015

 

0.9

 

1.2

Total 

 

$  10,738,316

 

$  10,707,166

 

0.3

 

0.7

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.2

 

5.2

       

Used vehicle retail sales

 

6.4

 

6.6

       

Used vehicle wholesale sales

 

(0.7)

 

(1.0)

       

Total used

 

5.6

 

5.7

       

Parts and service

 

53.7

 

54.0

       

Finance, insurance and other, net

 

100.0

 

100.0

       

Total

 

14.9

 

14.7

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$       311,925

 

$       312,101

 

(0.1)

 

0.3

Used vehicle retail sales

 

172,323

 

179,794

 

(4.2)

 

(3.7)

Used vehicle wholesale sales

 

(2,445)

 

(3,896)

 

37.2

 

37.8

Total used

 

169,878

 

175,898

 

(3.4)

 

(2.9)

Parts and service

 

700,116

 

669,270

 

4.6

 

4.9

Finance, insurance and other, net

 

417,905

 

414,015

 

0.9

 

1.2

Total 

 

$    1,599,824

 

$    1,571,284

 

1.8

 

2.2

                 

UNITS SOLD:

               

Retail new vehicles sold

 

165,499

 

167,958

 

(1.5)

   

Retail used vehicles sold

 

124,148

 

126,372

 

(1.8)

   

Wholesale used vehicles sold

 

53,273

 

55,723

 

(4.4)

   

Total used

 

177,421

 

182,095

 

(2.6)

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$         36,028

 

$         35,434

 

1.7

 

2.1

Used vehicle retail

 

$         21,594

 

$         21,442

 

0.7

 

1.3

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$           1,885

 

$           1,858

 

1.5

 

1.8

Used vehicle retail sales

 

1,388

 

1,423

 

(2.5)

 

(1.9)

Used vehicle wholesale sales

 

(46)

 

(70)

 

34.3

 

34.9

Total used

 

957

 

966

 

(0.9)

 

(0.4)

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

 

$           1,443

 

$           1,407

 

2.6

 

2.8

                 

OTHER: 

               

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

 

$       424,455

 

$       414,015

 

2.5

 

2.8

Adjusted Total Revenue (2) 

 

$  10,744,866

 

$  10,707,166

 

0.4

 

0.8

Adjusted Total Gross Profit (2) 

 

$    1,606,374

 

$    1,571,284

 

2.2

 

2.6

Adjusted Total Gross Margin (2) 

 

15.0

 

14.7

       

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

 

$           1,465

 

$           1,407

 

4.1

 

4.4

SG&A expenses

 

$    1,179,996

 

$    1,146,049

 

3.0

 

3.3

Adjusted SG&A expenses(2)

 

$    1,170,756

 

$    1,146,770

 

2.1

 

2.4

SG&A as % revenues

 

11.0

 

10.7

       

Adjusted SG&A as % revenues (2)

 

10.9

 

10.7

       

SG&A as % gross profit

 

73.8

 

72.9

       

Adjusted SG&A as % gross profit (2)

 

72.9

 

73.0

       

Operating margin %

 

3.2

 

3.2

       

Adjusted operating margin % (2)

 

3.5

 

3.5

       
                 
   

(1)

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

(2)

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 profit are the same. 

 

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

(Unaudited)

 (Dollars in thousands, except per share amounts)

             
   

Three Months Ended December 31,

   

2017

 

2016

 

% Increase/

(Decrease)

SG&A RECONCILIATION:

         
 

As reported

$    242,070

 

$    227,411

 

6.4

 

  Pre-tax adjustments:

         
 

 Gain on real estate and dealership transactions 

-

 

982

   
 

   Severance costs 

-

 

(1,837)

   
 

      Legal settlements (4)

-

 

11,671

   
 

  Adjusted SG&A (1)

$    242,070

 

$    238,227

 

1.6

SG&A AS % REVENUES:

         
 

Unadjusted

10.6

 

10.5

   
 

Adjusted(1)

10.6

 

11.0

   

SG&A AS % GROSS PROFIT:

         
 

Unadjusted

69.0

 

68.6

   
 

Adjusted (1)

69.0

 

71.9

   

OPERATING MARGIN %

         
 

Unadjusted

4.1

 

3.8

   
 

Adjusted (1), (2)

4.2

 

3.8

   

PRETAX MARGIN %:

         
 

Unadjusted

2.8

 

2.7

   
 

Adjusted (1), (2)

2.9

 

2.6

   

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$    238,151

 

$    229,946

 

3.6

 

  Pre-tax adjustments:

         
 

   Severance costs 

-

 

(1,837)

   
 

      Legal settlements (4)

-

 

9,864

   
 

 Adjusted Same Store SG&A (1)

$    238,151

 

$    237,973

 

0.1

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

10.6

 

10.6

   
 

Adjusted (1)

10.6

 

11.0

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

68.9

 

69.5

   
 

Adjusted (1)

68.9

 

71.9

   

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

4.1

 

3.7

   
 

Adjusted (1), (3)

4.2

 

3.8

   
             
   

Twelve Months Ended December 31,

   

2017

 

2016

 

% Increase/ (Decrease)

FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:

         
 

As reported

$    375,954

 

$    377,756

 

(0.5)

 

  Pre-tax adjustments:

         
 

 Catastrophic events 

6,550

 

-

   
 

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

$    382,504

 

$    377,756

 

1.3

             

TOTAL REVENUES RECONCILIATION:

         
 

As reported

$ 8,680,565

 

$ 8,734,672

 

(0.6)

 

  Pre-tax adjustments:

         
 

 Catastrophic events 

6,550

 

-

   
 

Adjusted Total Revenues (1)

$ 8,687,115

 

$ 8,734,672

 

(0.5)

             

TOTAL GROSS PROFIT RECONCILIATION:

         
 

As reported

$ 1,365,314

 

$ 1,355,349

 

0.7

 

  Pre-tax adjustments:

         
 

 Catastrophic events 

6,550

 

-

   
 

Adjusted Total Gross Profit (1)

$ 1,371,864

 

$ 1,355,349

 

1.2

             

SG&A RECONCILIATION:

         
 

As reported

$    983,974

 

$    965,139

 

2.0

 

  Pre-tax adjustments:

         
 

 Catastrophic events 

(8,792)

 

(5,873)

   
 

 Gain (loss) on real estate and dealership transactions 

(798)

 

2,838

   
 

 Severance costs 

-

 

(1,837)

   
 

 Acquisition costs 

-

 

(30)

   
 

  Legal settlements (4)

1,113

 

11,671

   
 

Adjusted SG&A (1)

$    975,497

 

$    971,908

 

0.4

             

 TOTAL GROSS MARGIN %: 

         
 

Unadjusted

15.7

 

15.5

   
 

Adjusted (1)

15.8

 

15.5

   

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

         
 

Unadjusted

$        1,647

 

$        1,599

 

3.0

 

Adjusted (1)

$        1,675

 

$        1,599

 

4.8

SG&A AS % REVENUES:

         
 

Unadjusted

11.3

 

11.0

   
 

Adjusted (1)

11.2

 

11.1

   

SG&A AS % OF GROSS PROFIT:

         
 

Unadjusted

72.1

 

71.2

   
 

Adjusted (1)

71.1

 

71.7

   

OPERATING MARGIN %:

         
 

 Unadjusted 

3.7

 

3.7

   
 

Adjusted (1), (2)

4.0

 

3.9

   

PRETAX MARGIN %:

         
 

Unadjusted

2.4

 

2.5

   
 

Adjusted (1), (2)

2.7

 

2.7

   
             

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

         
 

As reported

$    372,001

 

$    372,581

 

(0.2)

 

  Pre-tax adjustments:

         
 

 Catastrophic events 

6,550

 

-

   
 

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

$    378,551

 

$    372,581

 

1.6

             

 SAME STORE TOTAL REVENUES RECONCILIATION: 

         
 

As reported

$ 8,618,652

 

$ 8,638,510

 

(0.2)

 

  Pre-tax adjustments:

         
 

 Catastrophic events 

6,550

 

-

   
 

Adjusted Total Revenues (1)

$ 8,625,202

 

$ 8,638,510

 

(0.2)

             

 SAME STORE TOTAL GROSS PROFIT RECONCILIATION: 

         
 

As reported

$ 1,355,471

 

$ 1,340,981

 

1.1

 

  Pre-tax adjustments:

         
 

 Catastrophic events 

6,550

 

-

   
 

Adjusted Total Gross Profit (1)

$ 1,362,021

 

$ 1,340,981

 

1.6

             

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$    975,701

 

$    955,108

 

2.2

 

  Pre-tax adjustments:

         
 

 Catastrophic events 

(8,792)

 

(5,873)

   
 

 Loss on real estate and dealership transactions 

(798)

 

(384)

   
 

 Severance costs 

-

 

(1,837)

   
 

 Acquisition costs 

-

 

(30)

   
 

  Legal settlements (4)

1,113

 

9,864

   
 

Adjusted Same Store SG&A (1)

$    967,224

 

$    956,848

 

1.1

             

 SAME STORE TOTAL GROSS MARGIN %: 

         
 

Unadjusted

15.7

 

15.5

   
 

Adjusted (1)

15.8

 

15.5

   

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

         
 

Unadjusted

$        1,640

 

$        1,600

 

2.5

 

Adjusted (1)

$        1,669

 

$        1,600

 

4.3

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

11.3

 

11.1

   
 

Adjusted (1)

11.2

 

11.1

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

72.0

 

71.2

   
 

Adjusted (1)

71.0

 

71.4

   

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

3.7

 

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 $3,236 and $12,762 for the three and twelve months ended December 31, 2017, respectively, and $9,406 and $21,794 for the three and twelve months ended December 31, 2016, respectively.

(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $3,236 and $12,762 for the three and twelve months ended December 31, 2017, respectively, and $9,343 and $21,671 for the three and twelve months ended December 31, 2016, respectively.

(4)

For the twelve months ended December 31, 2017 the Company recognized a net pre-tax gain related to a settlement with an OEM of $1.8 million ($1.1 million on a Same Store basis). For the three and twelve months ended December 31, 2016, respectively, the Company recognized a net pre-tax gain related to a settlement with an OEM of $11.7 million ($9.9 million on a Same Store basis).
 

 

Group 1 Automotive, Inc.

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

(Unaudited)

 (Dollars in thousands, except per share amounts)

             
   

Three Months Ended December 31,

   

2017

 

2016

 

% Increase/

(Decrease)

SG&A RECONCILIATION:

         
 

As reported

$   54,095

 

$   39,482

 

37.0

 

  Pre-tax adjustments:

         
 

 Loss on real estate and dealership transactions 

-

 

(223)

   
 

 Severance costs 

-

 

(122)

   
 

Adjusted SG&A (1)

$   54,095

 

$   39,137

 

38.2

             

SG&A AS % REVENUES:

         
 

Unadjusted

10.7

 

10.2

   
 

Adjusted (1)

10.7

 

10.1

   

SG&A AS % GROSS PROFIT:

         
 

Unadjusted

89.5

 

88.9

   
 

Adjusted (1)

89.5

 

88.1

   

OPERATING MARGIN %

         
 

Unadjusted

0.8

 

0.8

   
 

Adjusted (1), (2)

0.8

 

0.9

   

PRETAX MARGIN %:

         
 

Unadjusted

0.3

 

0.2

   
 

Adjusted (1), (2)

0.3

 

0.3

   
             

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$   43,033

 

$   38,468

 

11.9

 

  Pre-tax adjustments:

         
 

 Loss on real estate and dealership transactions 

-

 

(61)

   
 

 Severance costs 

-

 

(122)

   
 

Adjusted Same Store SG&A (1)

$   43,033

 

$   38,285

 

12.4

             

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

10.5

 

10.0

   
 

Adjusted (1)

10.5

 

10.0

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

87.1

 

87.4

   
 

Adjusted (1)

87.1

 

87.0

   

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

1.1

 

1.0

   
 

Adjusted (1), (3)

1.1

 

1.1

   
             
   

 Twelve Months Ended December 31, 

   

2017

 

2016

 

% Increase/(Decrease)

SG&A RECONCILIATION:

         
             
 

As reported

$ 191,570

 

$ 158,636

 

20.8

 

  Pre-tax adjustments:

         
 

 Loss on real estate and dealership transactions 

-

 

(223)

   
 

 Severance costs 

-

 

(122)

   
 

 Acquisition costs 

(288)

 

(561)

   
 

Adjusted SG&A (1)

$ 191,282

 

$ 157,730

 

21.3

             

SG&A AS % REVENUES:

         
 

Unadjusted

9.6

 

9.2

   
 

Adjusted (1)

9.6

 

9.2

   

SG&A AS % OF GROSS PROFIT:

         
 

Unadjusted

85.0

 

82.2

   
 

Adjusted (1)

84.9

 

81.7

   

OPERATING MARGIN %:

         
 

Unadjusted

1.3

 

1.6

   
 

Adjusted (1), (2)

1.3

 

1.7

   

PRETAX MARGIN %:

         
 

Unadjusted

0.9

 

1.1

   
 

Adjusted (1), (2)

0.9

 

1.1

   
             

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$ 156,369

 

$ 150,626

 

3.8

 

  Pre-tax adjustments:

         
 

 Loss on real estate and dealership transactions 

-

 

(61)

   
 

 Severance costs 

-

 

(122)

   
 

 Acquisition costs 

(288)

 

(561)

   
 

Adjusted Same Store SG&A (1)

$ 156,081

 

$ 149,882

 

4.1

             

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

9.3

 

9.0

   
 

Adjusted (1)

9.3

 

8.9

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

81.8

 

80.1

   
 

Adjusted (1)

81.7

 

79.7

   

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

1.7

 

1.8

   
 

Adjusted (1), (3)

1.7

 

1.9

   
             
   

(1)

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

(2)

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

(3)

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

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Brazil

(Unaudited)

 (Dollars in thousands, except per share amounts)

             
   

Three Months Ended December 31,

   

2017

 

2016

 

% Increase/

(Decrease)

SG&A RECONCILIATION:

         
 

As reported

$ 13,356

 

$ 12,178

 

9.7

 

  Pre-tax adjustments:

         
 

 Severance costs 

(475)

 

-

   
 

Adjusted SG&A (1)

$ 12,881

 

$ 12,178

 

5.8

             

SG&A AS % REVENUES:

         
 

Unadjusted

10.7

 

10.6

   
 

Adjusted (1)

10.3

 

10.6

   

SG&A AS % GROSS PROFIT:

         
 

Unadjusted

91.7

 

90.6

   
 

Adjusted (1)

88.4

 

90.6

   

OPERATING MARGIN %

         
 

Unadjusted

(4.7)

 

(8.2)

   
 

Adjusted (1), (2)

1.1

 

0.8

   

PRETAX MARGIN %:

         
 

Unadjusted

(4.9)

 

(8.5)

   
 

Adjusted (1), (2)

0.9

 

0.5

   
             

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$ 13,233

 

$ 11,124

 

19.0

 

  Pre-tax adjustments:

         
 

 Severance costs 

(475)

 

-

   
 

Adjusted Same Store SG&A (1)

$ 12,758

 

$ 11,124

 

14.7

             

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

10.8

 

10.5

   
 

Adjusted (1)

10.4

 

10.5

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

92.0

 

90.5

   
 

Adjusted (1)

88.7

 

90.5

   

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

(4.9)

 

(9.1)

   
 

Adjusted (1), (3)

1.0

 

0.8

   
             
   

 Twelve Months Ended December 31, 

   

2017

 

2016

 

% Increase/ (Decrease)

SG&A RECONCILIATION:

         
 

As reported

$ 50,651

 

$ 46,988

 

7.8

 

  Pre-tax adjustments:

         
 

 Loss on real estate and dealership transactions 

-

 

(372)

   
 

 Severance costs 

(475)

 

-

   
 

 Foreign transaction tax 

-

 

(274)

   
 

Adjusted SG&A (1)

$ 50,176

 

$ 46,342

 

8.3

             

SG&A AS % REVENUES:

         
 

Unadjusted

11.1

 

10.9

   
 

Adjusted (1)

11.0

 

10.8

   

SG&A AS % OF GROSS PROFIT:

         
 

Unadjusted

92.2

 

100.5

   
 

Adjusted (1)

91.3

 

99.2

   

OPERATING MARGIN %:

         
 

Unadjusted

(0.9)

 

(2.9)

   
 

Adjusted (1), (2)

0.7

 

(0.2)

   

PRETAX MARGIN %:

         
 

Unadjusted

(1.0)

 

(3.0)

   
 

Adjusted (1), (2)

0.6

 

(0.3)

   
             

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$ 47,926

 

$ 40,315

 

18.9

 

  Pre-tax adjustments:

         
 

 Severance costs 

(475)

 

-

   
 

 Foreign transaction tax 

-

 

(274)

   
 

Adjusted Same Store SG&A (1)

$ 47,451

 

$ 40,041

 

18.5

             

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

10.9

 

10.3

   
 

Adjusted (1)

10.8

 

10.2

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

90.0

 

95.2

   
 

Adjusted (1)

89.1

 

94.6

   

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

(0.6)

 

(2.4)

   
 

Adjusted (1), (3)

1.0

 

0.3

   
             
   

(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 $6,744 for the three and twelve months ended December 31, 2017, respectively, and $10,420 and $10,843 for the three and twelve months ended December 31, 2016, respectively.

(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $6,744 for the three and twelve months ended December 31, 2017, respectively, and $10,420 for the three and twelve months ended December 31, 2016, respectively.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - CONSOLIDATED

(Unaudited)

 (Dollars in thousands, except per share amounts)

             
   

Three Months Ended December 31,

   

2017

 

2016

 

% Increase/

(Decrease)

             

NET INCOME RECONCILIATION:

         
 

As reported

         
 

  Pretax Net Income

$        58,974

 

$        48,520

   
 

   Income Tax Benefit (Provision) 

51,515

 

(17,692)

   
 

     Net Income  

$      110,489

 

$        30,828

 

258.4

 

       Effective Tax Rate 

(87.4)%

 

36.5%

   
 

 Pre-tax adjustments:  

         
 

 (Gain) loss on real estate and dealership transactions 

         
 

 Pre-tax 

-

 

(529)

   
 

 Tax impact 

-

 

264

   
 

 Severance costs  

         
 

 Pre-tax 

475

 

1,959

   
 

 Tax impact 

(122)

 

(710)

   
 

      Legal settlements (4)

         
 

 Pre-tax 

-

 

(11,671)

   
 

 Tax impact 

-

 

4,359

   
 

 Non-cash asset impairment 

         
 

 Pre-tax  

9,979

 

19,797

   
 

 Tax impact 

(3,515)

 

(7,041)

   
 

 Tax rate changes 

         
 

 Pre-tax  

-

 

-

   
 

 Tax impact 

(73,028)

 

-

   
 

 Adjusted 

         
 

   Pretax Net Income 

$        69,428

 

$        58,076

   
 

   Income Tax Provision 

(25,150)

 

(20,820)

   
 

   Adjusted net income (1)

$        44,278

 

$        37,256

 

18.8

 

       Effective Tax Rate 

36.2%

 

35.8%

   
             

ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED

         
 

COMMON SHARES RECONCILIATION:

         
 

Adjusted net income (1)

$        44,278

 

$        37,256

 

18.8

 

Less: Adjusted earnings allocated to participating securities

1,483

 

1,477

 

0.4

 

Adjusted net income available to diluted common shares (1)

$        42,795

 

$        35,779

 

19.6

             

 DILUTED INCOME PER COMMON SHARE RECONCILIATION: 

         
 

As reported

$            5.27

 

$            1.44

 

266.0

 

  After-tax adjustments:

         
 

 Gain on real estate and dealership transactions 

-

 

(0.01)

   
 

 Severance costs  

0.02

 

0.06

   
 

 Legal settlements  

-

 

(0.34)

   
 

 Non-cash asset impairment 

0.30

 

0.59

   
 

 Tax rate changes  

(3.48)

 

-

   
 

Adjusted diluted income per share(1)

$            2.11

 

$            1.74

 

21.3

             

SG&A RECONCILIATION:

         
 

As reported

$      309,521

 

$      279,071

 

10.9

 

  Pre-tax adjustments:

         
 

 Gain on real estate and dealership transactions 

-

 

759

   
 

 Severance costs  

(475)

 

(1,959)

   
 

   Legal settlements (4)

-

 

11,671

   
 

Adjusted SG&A (1)

$      309,046

 

$      289,542

 

6.7

             

SG&A AS % REVENUES:

         
 

Unadjusted

10.6

 

10.4

   
 

Adjusted (1)

10.6

 

10.8

   

SG&A AS % GROSS PROFIT:

         
 

Unadjusted

72.7

 

71.7

   
 

Adjusted (1)

72.6

 

74.4

   

OPERATING MARGIN %

         
 

Unadjusted

3.1

 

2.9

   
 

Adjusted (1), (2)

3.5

 

3.2

   

PRETAX MARGIN %:

         
 

Unadjusted

2.0

 

1.8

   
 

Adjusted (1), (2)

2.4

 

2.2

   
             

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$      294,417

 

$      279,538

 

5.3

 

  Pre-tax adjustments:

         
 

 Loss on real estate and dealership transactions 

-

 

(61)

   
 

 Severance costs  

(475)

 

(1,959)

   
 

  Legal settlements (4)

-

 

9,864

   
 

Adjusted Same Store SG&A (1)

$      293,942

 

$      287,382

 

2.3

             

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

10.6

 

10.5

   
 

Adjusted (1)

10.5

 

10.8

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

71.9

 

72.2

   
 

Adjusted (1)

71.8

 

74.2

   

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

3.3

 

2.8

   
 

Adjusted (1), (3)

3.6

 

3.3

   
             
   

 Twelve Months Ended December 31, 

   

2017

 

2016

 

% Increase/ (Decrease)

NET INCOME RECONCILIATION:

         
 

As reported

         
 

  Pretax Net Income

$      219,003

 

$      227,371

   
 

   Income Tax Provision 

(5,561)

 

(80,306)

   
 

     Net Income  

$      213,442

 

$      147,065

 

45.1

 

       Effective Tax Rate 

2.5%

 

35.3%

   
 

 Adjustments: 

         
 

 Catastrophic events  

         
 

 Pre-tax 

15,342

 

5,873

   
 

 Tax impact 

(5,926)

 

(2,207)

   
 

 (Gain) loss on real estate and dealership transactions 

         
 

 Pre-tax 

798

 

(1,530)

   
 

 Tax impact 

(301)

 

937

   
 

 Severance costs  

         
 

 Pre-tax 

475

 

1,959

   
 

 Tax impact 

(122)

 

(710)

   
 

 Acquisition costs including related tax impact  

         
 

 Pre-tax 

288

 

591

   
 

 Tax impact 

-

 

(11)

   
 

      Legal settlements (4)

         
 

 Pre-tax 

(1,113)

 

(11,671)

   
 

 Tax impact 

426

 

4,359

   
 

 Foreign transaction tax  

         
 

 Pre-tax 

-

 

274

   
 

 Tax impact 

-

 

-

   
 

 Non-cash asset impairment 

         
 

 Pre-tax  

19,505

 

32,124

   
 

 Tax impact 

(7,094)

 

(11,676)

   
 

 Allowance for uncertain tax positions 

         
 

 Pre-tax  

-

 

-

   
 

 Tax impact 

834

 

-

   
 

 Tax rate changes 

         
 

 Pre-tax  

-

 

-

   
 

 Tax impact 

(73,028)

 

-

   
 

 Foreign deferred income tax benefit 

         
 

 Pre-tax  

-

 

-

   
 

 Tax impact 

-

 

(1,686)

   
 

 Adjusted 

         
 

   Pretax Net Income 

$      254,298

 

$      254,991

   
 

   Income Tax Provision 

(90,772)

 

(91,300)

   
 

              Adjusted net income (1)

$      163,526

 

$      163,691

 

(0.1)

 

      Effective Tax Rate

35.7%

 

35.8%

   
             

 ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED 

         
 

 COMMON SHARES RECONCILIATION: 

         
 

 Adjusted net income (1)

$      163,526

 

$      163,691

 

(0.1)

 

 Less: Adjusted earnings allocated to participating securities 

5,738

 

6,537

 

(12.2)

 

 Adjusted net income available to diluted common shares (1)

$      157,788

 

$      157,154

 

0.4

             

 DILUTED INCOME PER COMMON SHARE RECONCILIATION: 

         
 

 As reported 

$          10.08

 

$            6.67

 

51.1

 

  After-tax adjustments: 

         
 

 Catastrophic events  

0.45

 

0.17

   
 

 (Gain) loss on real estate and dealership transactions 

0.03

 

(0.03)

   
 

 Severance costs  

0.01

 

0.05

   
 

 Acquisition costs including related tax impact  

0.01

 

0.02

   
 

 Legal settlements  

(0.03)

 

(0.33)

   
 

 Foreign transaction tax  

-

 

0.01

   
 

 Non-cash asset impairment 

0.59

 

0.93

   
 

 Allowance for uncertain tax positions 

0.04

 

-

   
 

 Tax rate changes 

(3.45)

 

-

   
 

 Foreign deferred income tax benefit 

-

 

(0.07)

   
 

   Adjusted diluted income per share (1)

$            7.73

 

$            7.42

 

4.2

             

 FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION: 

         
 

As reported

$      429,002

 

$      420,654

 

2.0

 

  Pre-tax adjustments:

         
 

Catastrophic events

6,550

 

-

   
 

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

$      435,552

 

$      420,654

 

3.5

             

 TOTAL REVENUES RECONCILIATION: 

         
 

As reported

$ 11,123,721

 

$ 10,887,612

 

2.2

 

  Pre-tax adjustments:

         
 

Catastrophic events

6,550

 

-

   
 

Adjusted Total Revenues (1)

$ 11,130,271

 

$ 10,887,612

 

2.2

             

 TOTAL GROSS PROFIT RECONCILIATION: 

         
 

As reported

$   1,645,509

 

$   1,595,069

 

3.2

 

  Pre-tax adjustments:

         
 

   Catastrophic events 

6,550

 

-

   
 

Adjusted Total Gross Profit (1)

$   1,652,059

 

$   1,595,069

 

3.6

             

SG&A RECONCILIATION:

         
 

As reported

$   1,226,195

 

$   1,170,763

 

4.7

 

  Pre-tax adjustments:

         
 

 Catastrophic events  

(8,792)

 

(5,873)

   
 

 Gain (loss) on real estate and dealership transactions 

(798)

 

2,243

   
 

 Severance costs  

(475)

 

(1,959)

   
 

 Acquisition costs 

(288)

 

(591)

   
 

 Legal settlements (4)

1,113

 

11,671

   
 

 Foreign transaction tax  

-

 

(274)

   
 

Adjusted SG&A (1)

$   1,216,955

 

$   1,175,980

 

3.5

             

 TOTAL GROSS MARGIN %: 

         
 

Unadjusted

14.8

 

14.7

   
 

Adjusted (1)

14.8

 

14.7

   

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

         
 

Unadjusted

$          1,420

 

$          1,397

 

1.6

 

Adjusted (1)

$          1,442

 

$          1,397

 

3.2

SG&A AS % REVENUES:

         
 

Unadjusted

11.0

 

10.8

   
 

Adjusted (1)

10.9

 

10.8

   

SG&A AS % OF GROSS PROFIT:

         
 

Unadjusted

74.5

 

73.4

   
 

Adjusted (1)

73.7

 

73.7

   

OPERATING MARGIN %:

         
 

Unadjusted

3.1

 

3.1

   
 

Adjusted (1), (2)

3.4

 

3.4

   

PRETAX MARGIN %:

         
 

Unadjusted

2.0

 

2.1

   
 

Adjusted(1), (2)

2.3

 

2.3

   
             

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

         
 

As reported

$      417,905

 

$      414,015

 

0.9

 

  Pre-tax adjustments:

         
 

Catastrophic events

6,550

 

-

   
 

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

$      424,455

 

$      414,015

 

2.5

 SAME STORE TOTAL REVENUES RECONCILIATION: 

         
 

As reported

$ 10,738,316

 

$ 10,707,166

 

0.3

 

  Pre-tax adjustments:

         
 

Catastrophic events

6,550

 

-

   
 

Adjusted Total Revenues (1)

$ 10,744,866

 

$ 10,707,166

 

0.4

 SAME STORE TOTAL GROSS PROFIT RECONCILIATION: 

         
 

As reported

$   1,599,824

 

$   1,571,284

 

1.8

 

  Pre-tax adjustments:

         
 

Catastrophic events

6,550

 

-

   
 

Adjusted Total Gross Profit(1)

$   1,606,374

 

$   1,571,284

 

2.2

             

 SAME STORE SG&A RECONCILIATION: 

         
 

As reported

$   1,179,996

 

$   1,146,049

 

3.0

 

  Pre-tax adjustments:

         
 

Catastrophic events 

(8,792)

 

(5,873)

   
 

Loss on real estate and dealership transactions

(798)

 

(446)

   
 

Severance costs 

(475)

 

(1,959)

   
 

Acquisition costs

(288)

 

(591)

   
 

      Legal settlements (4)

1,113

 

9,864

   
 

Foreign transaction tax 

-

 

(274)

   
 

Adjusted Same Store SG&A (1)

$   1,170,756

 

$   1,146,770

 

2.1

             

 SAME STORE TOTAL GROSS MARGIN %: 

         
 

 Unadjusted 

14.9

 

14.7

   
 

Adjusted (1)

15.0

 

14.7

   

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

         
 

Unadjusted

$          1,443

 

$          1,407

 

2.6

 

Adjusted(1)

$          1,465

 

$          1,407

 

4.1

             

 SAME STORE SG&A AS % REVENUES: 

         
 

 Unadjusted 

11.0

 

10.7

   
 

Adjusted (1)

10.9

 

10.7

   

 SAME STORE SG&A AS % GROSS PROFIT: 

         
 

Unadjusted

73.8

 

72.9

   
 

Adjusted (1)

72.9

 

73.0

   

 SAME STORE OPERATING MARGIN % 

         
 

Unadjusted

3.2

 

3.2

   
 

Adjusted (1), (3)

3.5

 

3.5

   
             

(1)

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

(2)

Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $9,979 and $19,505 for the three and twelve months ended December 31, 2017, respectively, and $20,027 and $32,838 for the three and twelve months ended December 31, 2016, respectively.

(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $9,979 and $19,505 for the three and twelve months ended December 31, 2017, respectively, and $19,965 and $32,292 for the three and twelve months ended December 31, 2016, respectively.

(4)

For the twelve months ended December 31, 2017 the Company recognized a net pre-tax gain related to a settlement with an OEM of $1.8 million ($1.1 million on a Same Store basis). For the three and twelve months ended December 31, 2016, respectively, the Company recognized a net pre-tax gain related to a settlement with an OEM of $11.7 million ($9.9 million on a Same Store basis).

 

SOURCE Group 1 Automotive, Inc.


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