HOUSTON, April 25, 2019 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), ("Group 1" or the "Company"), an international, Fortune 500 automotive retailer, today reported 2019 first quarter net income of $38.6 million, diluted earnings per common share (EPS) of $2.08, adjusted net income (a non-GAAP measure) of $38.2 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $2.06.
As shown in the attached non-GAAP reconciliation tables, the 2019 first quarter adjusted results (non-GAAP measures) exclude a net after-tax gain of approximately $0.5 million, or $0.02 cents per common share. This gain is comprised of $3.8 million of net after-tax gains related to dealership and real estate dispositions, partially offset by $1.9 million in after-tax losses related to legal matters, and $1.5 million in after-tax catastrophic losses related to hail storms.
"Our 21-percent growth in adjusted EPS versus last year reflects great performance by our U.S. and U.K. operating teams," said Earl J. Hesterberg, Group 1's president and chief executive officer. "The strategic emphasis we have placed on our used vehicle and aftersales business was obvious in our financial results this quarter. This performance clearly demonstrates our ability to grow earnings in a soft new vehicle sales market."
Consolidated Results for First Quarter 2019 (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:
Segment Results for First Quarter 2019 (year-over-year comparable basis)
The Company's U.S. operations accounted for 73.5 percent of total revenues and 80.4 percent of total gross profit. Total U.S. revenues were $2.1 billion, a decrease of 1.2 percent, driven by a decrease in new vehicle revenue (down 5.3 percent), which was partially offset by strong growth in used vehicles and aftersales. Same Store highlights in the segment were:
The Company's U.K. operations accounted for 22.9 percent of total revenues and 16.7 percent of total gross profit. The U.K. new vehicle industry sales decreased two percent for the first quarter 2019, with the Audi brand industry sales down 13 percent.
On a constant currency basis, Same Store U.K. revenues decreased 2.1 percent, with lower new vehicle sales partially offset by the strength of aftersales (up 12.4 percent), and F&I (up 8.1 percent). Total Same Store U.K. gross profit increased 0.9 percent on a constant currency basis, as strong growth in aftersales and F&I more than offset weaker new and total used vehicle gross profit. On a constant currency basis, Same Store F&I gross profit PRU grew 11.6 percent, to $827.
Same Store SG&A expenses as a percent of gross profit improved 150 basis points to 81.1 percent and operating margin improved 20 basis points to 1.6 percent.
The Company's Brazilian operations accounted for 3.7 percent of total revenues and 2.9 percent of total gross profit. Total revenue grew 8.1 percent on a constant currency basis, reflecting strong growth in each area of the business. Total gross profit grew 15.7 percent, on a constant currency basis, as total gross margin increased 80 basis points to 12.2 percent.
"The dramatic growth of our aftersales business this quarter was especially remarkable and reflects a variety of actions we have taken over the past year. Our Same Store aftersales revenue growth of 6.8 percent in the U.S., as well as 12.4 percent in the U.K., and 10.2 percent in Brazil demonstrates our competence in this area of the business across our entire company," added Hesterberg.
Share Repurchase Authorization
During the first quarter of 2019, the Company did not repurchase any of its outstanding common stock. As of April 25, 2019, $75.0 million remains available under the Company's 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
In February 2019, the Company disposed of a Chrysler-Jeep-Dodge-Ram dealership in California that generated approximately $60 million in trailing-twelve-month revenues. In March 2019, the Company opened a Kia add-point in an existing facility in the U.K, which is expected to generate approximately $15 million in annual revenues.
Year-to-date 2019, the Company has opened two add-points that are expected to generate $40 million in annual revenues, and has disposed of seven franchises that generated approximately $120 million in trailing-twelve-month revenues.
First Quarter 2019 Earnings Conference Call Details
Group 1's senior management will host a conference call today at 10 a.m. ET to discuss the first quarter financial results and the Company's outlook and strategy.
The conference call will be simulcast live on the Internet at www.group1auto.com, 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: |
3041785 |
A telephonic replay will be available following the call through May 3, 2018 by dialing:
|
Domestic: |
1-877-344-7529 |
|
International: |
1-412-317-0088 |
|
Replay ID: |
10130481 |
About Group 1 Automotive, Inc.
Group 1 owns and operates 181 automotive dealerships, 233 franchises, and 47 collision centers in the United States, the United Kingdom and Brazil that offer 30 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service contracts; provides automotive maintenance and repair services; and sells vehicle parts.
Investors please visit www.group1corp.com, www.group1auto.com, www.group1collision.com, www.facebook.com/group1auto, and www.twitter.com/group1auto, where Group 1 discloses additional information about the Company, its business, and its results of operations.
FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements related to future, not past, events and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. In this context, the forward-looking statements often include statements regarding our goals, plans, projections and guidance regarding our financial position, results of operations, market position, pending and potential future acquisitions and business strategy, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should," "foresee," "may" or "will" and similar expressions. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Any such forward-looking statements are not assurances of future performance and involve risks and uncertainties that may cause actual results to differ materially from those set forth in the statements. These risks and uncertainties include, among other things, (a) general economic and business conditions, (b) the level of manufacturer incentives, (c) the future regulatory environment, (d) our ability to obtain an inventory of desirable new and used vehicles, (e) our relationship with our automobile manufacturers and the willingness of manufacturers to approve future acquisitions, (f) our cost of financing and the availability of credit for consumers, (g) our ability to complete acquisitions and dispositions and the risks associated therewith, (h) foreign exchange controls and currency fluctuations, and (i) our ability to retain key personnel. For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with the SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.
NON-GAAP FINANCIAL MEASURES
In addition to evaluating the financial condition and results of our operations in accordance with GAAP, from time to time our management evaluates and analyzes results and any impact on the Company of strategic decisions and actions relating to, among other things, cost reduction, growth, and profitability improvement initiatives, and other events outside of normal, or "core," business and operations, by considering alternative financial measures not prepared in accordance with GAAP. This includes evaluating measures such as adjusted selling, general and administrative expenses, adjusted net income and adjusted diluted earnings per share. These adjusted measures are not measures of financial performance under U.S. GAAP, but are instead considered non-GAAP financial performance measures. Non-GAAP measures do not have definitions under GAAP and may be defined differently by and not be comparable to similarly titled measures used by other companies. As a result, any non-GAAP financial measures considered and evaluated by management are reviewed in conjunction with a review of the most directly comparable measures calculated in accordance with GAAP. We caution investors not to place undue reliance on such non-GAAP measures, but also to consider them with the most directly comparable GAAP measures. In our evaluation of results from time to time, we exclude items that do not arise directly from core operations, such as non-cash asset impairment charges, gains and losses on dealership franchise or real estate transactions, and catastrophic weather events such as hail storms, hurricanes, and snow storms. Because these non-core charges and gains materially affect the Company's financial condition or results in the specific period in which they are recognized, management also evaluates, and makes resource allocation and performance evaluation decisions based on, the related non-GAAP measures excluding such items.
In addition to using such non-GAAP measures to evaluate results in a specific period, management believes that such measures may provide more complete and consistent comparisons of operational performance on a period-over-period historical basis and a better indication of expected future trends. Our management also uses these adjusted measures in conjunction with U.S. GAAP financial measures to assess our business, including communication with our Board of Directors, investors and industry analysts concerning financial performance. We disclose these non-GAAP measures, and the related reconciliations, because we believe investors use these metrics in evaluating longer-term period-over-period performance, and to allow investors to better understand and evaluate the information used by management to assess operating performance. The exclusion of certain expenses in the calculation of non-GAAP financial measures should not be construed as an inference that these costs are unusual or infrequent. We anticipate excluding these expenses in the future presentation of our non-GAAP financial measures.
In addition, we evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our underlying business and results of operations, consistent with how we evaluate our performance. We calculate constant currency percentages by converting our current period reported results for entities reporting in currencies other than United States dollars using comparative period exchange rates rather than the actual exchange rates in effect during the respective periods. The constant currency performance measures should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with U.S. GAAP.
Investor contacts:
Sheila Roth
Manager, Investor Relations
Group 1 Automotive, Inc.
713-647-5741 | sroth@group1auto.com
Media contacts:
Pete DeLongchamps
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 March 31, |
||||||||
|
2019 |
2018 |
% |
||||||
|
REVENUES: |
||||||||
|
New vehicle retail sales |
$ |
1,414,485 |
$ |
1,513,590 |
(6.5) |
|||
|
Used vehicle retail sales |
819,203 |
780,570 |
4.9 |
|||||
|
Used vehicle wholesale sales |
92,138 |
104,029 |
(11.4) |
|||||
|
Parts and service |
369,174 |
349,515 |
5.6 |
|||||
|
Finance, insurance and other, net |
113,376 |
112,322 |
0.9 |
|||||
|
Total revenues |
2,808,376 |
2,860,026 |
(1.8) |
|||||
|
COST OF SALES: |
||||||||
|
New vehicle retail sales |
1,343,094 |
1,438,163 |
(6.6) |
|||||
|
Used vehicle retail sales |
771,394 |
737,075 |
4.7 |
|||||
|
Used vehicle wholesale sales |
91,687 |
102,374 |
(10.4) |
|||||
|
Parts and service |
170,698 |
162,651 |
4.9 |
|||||
|
Total cost of sales |
2,376,873 |
2,440,263 |
(2.6) |
|||||
|
GROSS PROFIT |
431,503 |
419,763 |
2.8 |
|||||
|
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
327,708 |
324,347 |
1.0 |
|||||
|
DEPRECIATION AND AMORTIZATION EXPENSE |
16,997 |
16,342 |
4.0 |
|||||
|
OPERATING INCOME (LOSS) |
86,798 |
79,074 |
9.8 |
|||||
|
OTHER EXPENSE: |
||||||||
|
Floorplan interest expense |
(15,703) |
(14,087) |
11.5 |
|||||
|
Other interest expense, net |
(18,919) |
(18,820) |
0.5 |
|||||
|
INCOME (LOSS) BEFORE INCOME TAXES |
52,176 |
46,167 |
13.0 |
|||||
|
BENEFIT (PROVISION) FOR INCOME TAXES |
(13,528) |
(10,353) |
30.7 |
|||||
|
NET INCOME (LOSS) |
$ |
38,648 |
$ |
35,814 |
7.9 |
|||
|
Less: Earnings allocated to participating securities |
$ |
1,455 |
$ |
1,208 |
20.4 |
|||
|
Earnings available to diluted common shares |
$ |
37,193 |
$ |
34,606 |
7.5 |
|||
|
DILUTED EARNINGS PER SHARE |
$ |
2.08 |
$ |
1.70 |
22.4 |
|||
|
Weighted average dilutive common shares outstanding |
17,849 |
20,307 |
(12.1) |
|||||
|
Weighted average participating securities |
701 |
715 |
(2.0) |
|||||
|
Total weighted average shares outstanding |
18,550 |
21,022 |
(11.8) |
|||||
|
Group 1 Automotive, Inc. |
|||||||||||
|
Consolidated Balance Sheets |
|||||||||||
|
(Unaudited) |
|||||||||||
|
(Dollars in thousands) |
|||||||||||
|
March 31, |
December 31, |
% |
|||||||||
|
ASSETS: |
|||||||||||
|
CURRENT ASSETS: |
|||||||||||
|
Cash and cash equivalents |
$ |
33,623 |
$ |
15,932 |
111.0 |
||||||
|
Contracts in transit and vehicle receivables, net |
261,194 |
265,660 |
(1.7) |
||||||||
|
Accounts and notes receivable, net |
185,311 |
193,981 |
(4.5) |
||||||||
|
Inventories, net |
1,860,907 |
1,844,059 |
0.9 |
||||||||
|
Prepaid expenses and other current assets |
92,036 |
82,734 |
11.2 |
||||||||
|
Total current assets |
2,433,071 |
2,402,366 |
1.3 |
||||||||
|
PROPERTY AND EQUIPMENT, net |
1,370,743 |
1,347,835 |
1.7 |
||||||||
|
OPERATING LEASE ASSETS |
214,776 |
— |
100.0 |
||||||||
|
GOODWILL AND INTANGIBLE FRANCHISE RIGHTS |
1,226,347 |
1,223,555 |
0.2 |
||||||||
|
OTHER ASSETS |
18,554 |
27,319 |
(32.1) |
||||||||
|
Total assets |
$ |
5,263,491 |
$ |
5,001,075 |
5.2 |
||||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY: |
|||||||||||
|
CURRENT LIABILITIES: |
|||||||||||
|
Floorplan notes payable - credit facility and other |
$ |
1,255,784 |
$ |
1,292,452 |
(2.8) |
||||||
|
Offset account related to floorplan notes payable - credit facility |
(72,728) |
(33,637) |
116.2 |
||||||||
|
Floorplan notes payable - manufacturer affiliates |
444,003 |
417,924 |
6.2 |
||||||||
|
Offset account related to floorplan notes payable - manufacturer affiliates |
(26,000) |
(100) |
25,900.0 |
||||||||
|
Current maturities of long-term debt and short-term financing |
96,359 |
92,967 |
3.6 |
||||||||
|
Current operating lease liabilities |
23,907 |
— |
100.0 |
||||||||
|
Current liabilities from interest rate risk management activities |
254 |
115 |
120.9 |
||||||||
|
Accounts payable |
507,348 |
419,350 |
21.0 |
||||||||
|
Accrued expenses |
207,815 |
197,494 |
5.2 |
||||||||
|
Total current liabilities |
2,436,742 |
2,386,565 |
2.1 |
||||||||
|
5.00% SENIOR NOTES (principal of $550,000 at March 31, 2019 and December 31, 2018, respectively) |
544,158 |
543,730 |
0.1 |
||||||||
|
5.25% SENIOR NOTES (principal of $300,000 at March 31, 2019 and December 31, 2018, respectively) |
296,884 |
296,735 |
0.1 |
||||||||
|
ACQUISITION LINE |
29,342 |
31,842 |
(7.9) |
||||||||
|
REAL ESTATE RELATED AND OTHER LONG-TERM DEBT, net of current maturities |
350,884 |
366,723 |
(4.3) |
||||||||
|
CAPITAL LEASE OBLIGATIONS RELATED TO REAL ESTATE, net of current maturities |
41,314 |
42,459 |
(2.7) |
||||||||
|
OPERATING LEASE LIABILITIES, net of current portion |
204,331 |
— |
100.0 |
||||||||
|
DEFERRED INCOME TAXES |
136,219 |
134,683 |
1.1 |
||||||||
|
LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES |
2,430 |
1,696 |
43.3 |
||||||||
|
OTHER LIABILITIES |
93,474 |
100,948 |
(7.4) |
||||||||
|
STOCKHOLDERS' EQUITY: |
|||||||||||
|
Common stock |
255 |
255 |
— |
||||||||
|
Additional paid-in capital |
287,115 |
292,774 |
(1.9) |
||||||||
|
Retained earnings |
1,422,576 |
1,394,817 |
2.0 |
||||||||
|
Accumulated other comprehensive income (loss) |
(138,749) |
(137,772) |
0.7 |
||||||||
|
Treasury stock |
(443,484) |
(454,380) |
(2.4) |
||||||||
|
Total stockholders' equity |
1,127,713 |
1,095,694 |
2.9 |
||||||||
|
Total liabilities and stockholders' equity |
$ |
5,263,491 |
$ |
5,001,075 |
5.2 |
||||||
|
Group 1 Automotive, Inc. |
||||||||
|
Additional Information - Consolidated |
||||||||
|
(Unaudited) |
||||||||
|
Three Months Ended |
||||||||
|
March 31, |
||||||||
|
2019 (%) |
2018 (%) |
|||||||
|
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX: |
||||||||
|
Region |
Geographic Market |
|||||||
|
United States |
Texas |
34.5 |
34.9 |
|||||
|
Oklahoma |
6.1 |
6.0 |
||||||
|
California |
5.3 |
6.5 |
||||||
|
Massachusetts |
4.3 |
4.8 |
||||||
|
Georgia |
4.2 |
4.3 |
||||||
|
Florida |
2.7 |
2.5 |
||||||
|
Louisiana |
2.3 |
1.8 |
||||||
|
New Jersey |
1.8 |
1.6 |
||||||
|
New Hampshire |
1.6 |
1.8 |
||||||
|
South Carolina |
1.6 |
1.5 |
||||||
|
Mississippi |
1.2 |
1.2 |
||||||
|
Kansas |
1.0 |
1.4 |
||||||
|
Alabama |
0.7 |
0.7 |
||||||
|
Maryland |
0.4 |
0.5 |
||||||
|
New Mexico |
0.2 |
0.1 |
||||||
|
67.9 |
69.6 |
|||||||
|
International |
United Kingdom |
26.6 |
25.4 |
|||||
|
Brazil |
5.5 |
5.0 |
||||||
|
100.0 |
100.0 |
|||||||
|
NEW VEHICLE UNIT SALES BRAND MIX: |
||||||||
|
Toyota/Lexus |
23.1 |
24.0 |
||||||
|
Volkswagen/Audi/Porsche/SEAT/SKODA |
15.1 |
14.1 |
||||||
|
BMW/MINI |
12.5 |
12.7 |
||||||
|
Honda/Acura |
10.9 |
9.5 |
||||||
|
Ford/Lincoln |
10.6 |
11.3 |
||||||
|
Chevrolet/GMC/Buick/Cadillac |
6.3 |
5.8 |
||||||
|
Nissan |
6.0 |
6.7 |
||||||
|
Mercedes-Benz/smart/Sprinter |
5.4 |
4.7 |
||||||
|
Hyundai/Kia |
3.5 |
3.9 |
||||||
|
Chrysler/Dodge/Jeep/RAM |
3.1 |
4.1 |
||||||
|
Jaguar/Land Rover |
2.5 |
1.8 |
||||||
|
Other |
1.0 |
1.4 |
||||||
|
100.0 |
100.0 |
|||||||
|
Group 1 Automotive, Inc. |
||||||||||
|
Additional Information - U.S. |
||||||||||
|
(Unaudited) |
||||||||||
|
(Dollars in thousands, except per unit amounts) |
||||||||||
|
Three Months Ended March 31, |
||||||||||
|
2019 |
2018 |
% |
||||||||
|
REVENUES: |
||||||||||
|
New vehicle retail sales |
$ |
1,031,742 |
$ |
1,089,953 |
(5.3) |
|||||
|
Used vehicle retail sales |
594,418 |
563,830 |
5.4 |
|||||||
|
Used vehicle wholesale sales |
42,827 |
54,002 |
(20.7) |
|||||||
|
Total used |
637,245 |
617,832 |
3.1 |
|||||||
|
Parts and service |
297,602 |
284,514 |
4.6 |
|||||||
|
Finance, insurance and other, net |
96,193 |
96,187 |
— |
|||||||
|
Total |
$ |
2,062,782 |
$ |
2,088,486 |
(1.2) |
|||||
|
GROSS MARGIN %: |
||||||||||
|
New vehicle retail sales |
4.9 |
4.9 |
||||||||
|
Used vehicle retail sales |
6.4 |
5.9 |
||||||||
|
Used vehicle wholesale sales |
2.7 |
2.7 |
||||||||
|
Total used |
6.2 |
5.7 |
||||||||
|
Parts and service |
53.9 |
53.2 |
||||||||
|
Finance, insurance and other, net |
100.0 |
100.0 |
||||||||
|
Total |
16.8 |
16.1 |
||||||||
|
GROSS PROFIT: |
||||||||||
|
New vehicle retail sales |
$ |
50,804 |
$ |
53,135 |
(4.4) |
|||||
|
Used vehicle retail sales |
38,284 |
33,485 |
14.3 |
|||||||
|
Used vehicle wholesale sales |
1,164 |
1,434 |
(18.8) |
|||||||
|
Total used |
39,448 |
34,919 |
13.0 |
|||||||
|
Parts and service |
160,472 |
151,444 |
6.0 |
|||||||
|
Finance, insurance and other, net |
96,193 |
96,187 |
— |
|||||||
|
Total |
$ |
346,917 |
$ |
335,685 |
3.3 |
|||||
|
UNITS SOLD: |
||||||||||
|
Retail new vehicles sold |
26,390 |
28,673 |
(8.0) |
|||||||
|
Retail used vehicles sold |
29,317 |
27,310 |
7.3 |
|||||||
|
Wholesale used vehicles sold |
7,150 |
9,383 |
(23.8) |
|||||||
|
Total used |
36,467 |
36,693 |
(0.6) |
|||||||
|
AVERAGE RETAIL SALES PRICE: |
||||||||||
|
New vehicle retail |
$ |
39,096 |
$ |
38,013 |
2.8 |
|||||
|
Used vehicle retail |
$ |
20,276 |
$ |
20,646 |
(1.8) |
|||||
|
GROSS PROFIT PER UNIT SOLD: |
||||||||||
|
New vehicle retail sales |
$ |
1,925 |
$ |
1,853 |
3.9 |
|||||
|
Used vehicle retail sales |
$ |
1,306 |
$ |
1,226 |
6.5 |
|||||
|
Used vehicle wholesale sales |
$ |
163 |
$ |
153 |
6.5 |
|||||
|
Total used |
$ |
1,082 |
$ |
952 |
13.7 |
|||||
|
Finance, insurance and other, net (per retail unit) |
$ |
1,727 |
$ |
1,718 |
0.5 |
|||||
|
OTHER: |
||||||||||
|
SG&A expenses |
$ |
256,153 |
$ |
252,941 |
1.3 |
|||||
|
Adjusted SG&A expenses (1) |
$ |
257,567 |
$ |
252,941 |
1.8 |
|||||
|
SG&A as % revenues |
12.4 |
12.1 |
||||||||
|
Adjusted SG&A as % revenues (1) |
12.5 |
12.1 |
||||||||
|
SG&A as % gross profit |
73.8 |
75.4 |
||||||||
|
Adjusted SG&A as % gross profit (1) |
74.2 |
75.4 |
||||||||
|
Operating margin % |
3.8 |
3.3 |
||||||||
|
Adjusted operating margin % (1) |
3.7 |
3.3 |
||||||||
|
Pretax margin % |
2.2 |
1.9 |
||||||||
|
Adjusted pretax margin % (1) |
2.2 |
1.9 |
||||||||
|
INTEREST EXPENSE: |
||||||||||
|
Floorplan interest expense |
$ |
(13,988) |
$ |
(12,337) |
13.4 |
|||||
|
Floorplan assistance |
10,326 |
10,750 |
(3.9) |
|||||||
|
Net floorplan expense |
$ |
(3,662) |
$ |
(1,587) |
130.7 |
|||||
|
Other interest expense, net |
$ |
(17,175) |
$ |
(17,016) |
0.9 |
|||||
|
(1) See the section of this release entitled "Non-GAAP Financial Measures" and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP. |
|
Group 1 Automotive, Inc. |
|||||||||||||
|
Additional Information - U.K. |
|||||||||||||
|
(Unaudited) |
|||||||||||||
|
(Dollars in thousands, except per unit amounts) |
|||||||||||||
|
Three Months Ended March 31, |
|||||||||||||
|
2019 |
2018 |
% |
Constant Currency (1) |
||||||||||
|
REVENUES: |
|||||||||||||
|
New vehicle retail sales |
$ |
318,571 |
$ |
354,404 |
(10.1) |
(4.2) |
|||||||
|
Used vehicle retail sales |
203,561 |
192,549 |
5.7 |
12.9 |
|||||||||
|
Used vehicle wholesale sales |
45,261 |
46,185 |
(2.0) |
4.7 |
|||||||||
|
Total used |
248,822 |
238,734 |
4.2 |
11.3 |
|||||||||
|
Parts and service |
59,566 |
53,141 |
12.1 |
19.8 |
|||||||||
|
Finance, insurance and other, net |
15,199 |
14,263 |
6.6 |
13.6 |
|||||||||
|
Total |
$ |
642,158 |
$ |
660,542 |
(2.8) |
3.7 |
|||||||
|
GROSS MARGIN %: |
|||||||||||||
|
New vehicle retail sales |
5.3 |
5.2 |
|||||||||||
|
Used vehicle retail sales |
4.1 |
4.4 |
|||||||||||
|
Used vehicle wholesale sales |
(2.2) |
0.2 |
|||||||||||
|
Total used |
2.9 |
3.6 |
|||||||||||
|
Parts and service |
55.0 |
56.5 |
|||||||||||
|
Finance, insurance and other, net |
100.0 |
100.0 |
|||||||||||
|
Total |
11.2 |
10.8 |
|||||||||||
|
GROSS PROFIT: |
|||||||||||||
|
New vehicle retail sales |
$ |
16,772 |
$ |
18,511 |
(9.4) |
(3.7) |
|||||||
|
Used vehicle retail sales |
8,288 |
8,560 |
(3.2) |
3.4 |
|||||||||
|
Used vehicle wholesale sales |
(1,010) |
70 |
(1,542.9) |
(1,798.0) |
|||||||||
|
Total used |
7,278 |
8,630 |
(15.7) |
(11.2) |
|||||||||
|
Parts and service |
32,746 |
30,047 |
9.0 |
16.4 |
|||||||||
|
Finance, insurance and other, net |
15,199 |
14,263 |
6.6 |
13.6 |
|||||||||
|
Total |
$ |
71,995 |
$ |
71,451 |
0.8 |
7.5 |
|||||||
|
UNITS SOLD: |
|||||||||||||
|
Retail new vehicles sold |
10,344 |
10,450 |
(1.0) |
||||||||||
|
Retail used vehicles sold |
8,431 |
7,835 |
7.6 |
||||||||||
|
Wholesale used vehicles sold |
5,367 |
5,587 |
(3.9) |
||||||||||
|
Total used |
13,798 |
13,422 |
2.8 |
||||||||||
|
AVERAGE RETAIL SALES PRICE: |
|||||||||||||
|
New vehicle retail |
$ |
30,798 |
$ |
33,914 |
(9.2) |
(3.3) |
|||||||
|
Used vehicle retail |
$ |
24,144 |
$ |
24,575 |
(1.8) |
5.0 |
|||||||
|
GROSS PROFIT PER UNIT SOLD: |
|||||||||||||
|
New vehicle retail sales |
$ |
1,621 |
$ |
1,771 |
(8.5) |
(2.7) |
|||||||
|
Used vehicle retail sales |
$ |
983 |
$ |
1,093 |
(10.1) |
(3.9) |
|||||||
|
Used vehicle wholesale sales |
$ |
(188) |
$ |
13 |
(1,546.2) |
(1,867.6) |
|||||||
|
Total used |
$ |
527 |
$ |
643 |
(18.0) |
(13.6) |
|||||||
|
Finance, insurance and other, net (per retail unit) |
$ |
810 |
$ |
780 |
3.8 |
10.7 |
|||||||
|
OTHER: |
|||||||||||||
|
SG&A expenses |
$ |
59,192 |
$ |
59,596 |
(0.7) |
6.1 |
|||||||
|
SG&A as % revenues |
9.2 |
9.0 |
|||||||||||
|
SG&A as % gross profit |
82.2 |
83.4 |
|||||||||||
|
Operating margin % |
1.5 |
1.3 |
|||||||||||
|
Pretax margin % |
1.0 |
0.9 |
|||||||||||
|
INTEREST EXPENSE: |
|||||||||||||
|
Floorplan interest expense |
$ |
(1,614) |
$ |
(1,514) |
6.6 |
13.9 |
|||||||
|
Floorplan assistance |
156 |
285 |
(45.3) |
(41.4) |
|||||||||
|
Net floorplan expense |
$ |
(1,458) |
$ |
(1,229) |
18.6 |
26.7 |
|||||||
|
Other interest expense, net |
$ |
(1,584) |
$ |
(1,532) |
3.4 |
10.6 |
|||||||
|
(1) See the section of this release entitled "Non-GAAP Financial Measures" and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP. |
|
Group 1 Automotive, Inc. |
|||||||||||||
|
Additional Information - Brazil |
|||||||||||||
|
(Unaudited) |
|||||||||||||
|
(Dollars in thousands, except per unit amounts) |
|||||||||||||
|
Three Months Ended March 31, |
|||||||||||||
|
2019 |
2018 |
% |
Constant Currency (1) |
||||||||||
|
REVENUES: |
|||||||||||||
|
New vehicle retail sales |
$ |
64,172 |
$ |
69,233 |
(7.3) |
7.6 |
|||||||
|
Used vehicle retail sales |
21,224 |
24,191 |
(12.3) |
1.7 |
|||||||||
|
Used vehicle wholesale sales |
4,050 |
3,842 |
5.4 |
22.9 |
|||||||||
|
Total used |
25,274 |
28,033 |
(9.8) |
4.6 |
|||||||||
|
Parts and service |
12,006 |
11,860 |
1.2 |
17.5 |
|||||||||
|
Finance, insurance and other, net |
1,984 |
1,872 |
6.0 |
22.7 |
|||||||||
|
Total |
$ |
103,436 |
$ |
110,998 |
(6.8) |
8.1 |
|||||||
|
GROSS MARGIN %: |
|||||||||||||
|
New vehicle retail sales |
5.9 |
5.5 |
|||||||||||
|
Used vehicle retail sales |
5.8 |
6.0 |
|||||||||||
|
Used vehicle wholesale sales |
7.3 |
3.9 |
|||||||||||
|
Total used |
6.1 |
5.7 |
|||||||||||
|
Parts and service |
43.8 |
45.3 |
|||||||||||
|
Finance, insurance and other, net |
100.0 |
100.0 |
|||||||||||
|
Total |
12.2 |
11.4 |
|||||||||||
|
GROSS PROFIT: |
|||||||||||||
|
New vehicle retail sales |
$ |
3,815 |
$ |
3,781 |
0.9 |
17.1 |
|||||||
|
Used vehicle retail sales |
1,237 |
1,450 |
(14.7) |
(1.0) |
|||||||||
|
Used vehicle wholesale sales |
297 |
151 |
96.7 |
127.9 |
|||||||||
|
Total used |
1,534 |
1,601 |
(4.2) |
11.2 |
|||||||||
|
Parts and service |
5,258 |
5,373 |
(2.1) |
13.5 |
|||||||||
|
Finance, insurance and other, net |
1,984 |
1,872 |
6.0 |
22.7 |
|||||||||
|
Total |
$ |
12,591 |
$ |
12,627 |
(0.3) |
15.7 |
|||||||
|
UNITS SOLD: |
|||||||||||||
|
Retail new vehicles sold |
2,140 |
2,067 |
3.5 |
||||||||||
|
Retail used vehicles sold |
1,088 |
1,071 |
1.6 |
||||||||||
|
Wholesale used vehicles sold |
472 |
357 |
32.2 |
||||||||||
|
Total used |
1,560 |
1,428 |
9.2 |
||||||||||
|
AVERAGE RETAIL SALES PRICE: |
|||||||||||||
|
New vehicle retail |
$ |
29,987 |
$ |
33,494 |
(10.5) |
3.9 |
|||||||
|
Used vehicle retail |
$ |
19,507 |
$ |
22,587 |
(13.6) |
0.1 |
|||||||
|
GROSS PROFIT PER UNIT SOLD: |
|||||||||||||
|
New vehicle retail sales |
$ |
1,783 |
$ |
1,829 |
(2.5) |
13.1 |
|||||||
|
Used vehicle retail sales |
$ |
1,137 |
$ |
1,354 |
(16.0) |
(2.5) |
|||||||
|
Used vehicle wholesale sales |
$ |
629 |
$ |
423 |
48.7 |
72.3 |
|||||||
|
Total used |
$ |
983 |
$ |
1,121 |
(12.3) |
1.8 |
|||||||
|
Finance, insurance and other, net (per retail unit) |
$ |
615 |
$ |
597 |
3.0 |
19.3 |
|||||||
|
OTHER: |
|||||||||||||
|
SG&A expenses |
$ |
12,363 |
$ |
11,810 |
4.7 |
21.6 |
|||||||
|
Adjusted SG&A expenses (1) |
$ |
11,791 |
$ |
11,810 |
(0.2) |
15.9 |
|||||||
|
SG&A as % revenues |
12.0 |
10.6 |
|||||||||||
|
Adjusted SG&A as % revenues (1) |
11.4 |
10.6 |
|||||||||||
|
SG&A as % gross profit |
98.2 |
93.5 |
|||||||||||
|
Adjusted SG&A as % gross profit (1) |
93.7 |
93.5 |
|||||||||||
|
Operating margin % |
(0.2) |
0.4 |
|||||||||||
|
Adjusted operating margin % (1) |
0.4 |
0.4 |
|||||||||||
|
Pretax margin % |
(0.4) |
(0.1) |
|||||||||||
|
Adjusted pretax margin % (1) |
0.1 |
(0.1) |
|||||||||||
|
INTEREST EXPENSE: |
|||||||||||||
|
Floorplan interest expense |
$ |
(101) |
$ |
(236) |
(57.2) |
(50.0) |
|||||||
|
Other interest expense, net |
$ |
(160) |
$ |
(272) |
(41.2) |
(31.8) |
|||||||
|
(1) See the section of this release entitled "Non-GAAP Financial Measures" and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP. |
|
Group 1 Automotive, Inc. |
|||||||||||||
|
Additional Information - Consolidated |
|||||||||||||
|
(Unaudited) |
|||||||||||||
|
(Dollars in thousands, except per unit amounts) |
|||||||||||||
|
Three Months Ended March 31, |
|||||||||||||
|
2019 |
2018 |
% |
Constant Currency (1) |
||||||||||
|
REVENUES: |
|||||||||||||
|
New vehicle retail sales |
$ |
1,414,485 |
$ |
1,513,590 |
(6.5) |
(4.5) |
|||||||
|
Used vehicle retail sales |
819,203 |
780,570 |
4.9 |
7.2 |
|||||||||
|
Used vehicle wholesale sales |
92,138 |
104,029 |
(11.4) |
(7.8) |
|||||||||
|
Total used |
911,341 |
884,599 |
3.0 |
5.4 |
|||||||||
|
Parts and service |
369,174 |
349,515 |
5.6 |
7.3 |
|||||||||
|
Finance, insurance and other, net |
113,376 |
112,322 |
0.9 |
2.1 |
|||||||||
|
Total |
$ |
2,808,376 |
$ |
2,860,026 |
(1.8) |
0.3 |
|||||||
|
GROSS MARGIN %: |
|||||||||||||
|
New vehicle retail sales |
5.0 |
5.0 |
|||||||||||
|
Used vehicle retail sales |
5.8 |
5.6 |
|||||||||||
|
Used vehicle wholesale sales |
0.5 |
1.6 |
|||||||||||
|
Total used |
5.3 |
5.1 |
|||||||||||
|
Parts and service |
53.8 |
53.5 |
|||||||||||
|
Finance, insurance and other, net |
100.0 |
100.0 |
|||||||||||
|
Total |
15.4 |
14.7 |
|||||||||||
|
GROSS PROFIT: |
|||||||||||||
|
New vehicle retail sales |
$ |
71,391 |
$ |
75,427 |
(5.4) |
(3.1) |
|||||||
|
Used vehicle retail sales |
47,809 |
43,495 |
9.9 |
11.7 |
|||||||||
|
Used vehicle wholesale sales |
451 |
1,655 |
(72.7) |
(80.6) |
|||||||||
|
Total used |
48,260 |
45,150 |
6.9 |
8.3 |
|||||||||
|
Parts and service |
198,476 |
186,864 |
6.2 |
7.9 |
|||||||||
|
Finance, insurance and other, net |
113,376 |
112,322 |
0.9 |
2.1 |
|||||||||
|
Total |
$ |
431,503 |
$ |
419,763 |
2.8 |
4.4 |
|||||||
|
UNITS SOLD: |
|||||||||||||
|
Retail new vehicles sold |
38,874 |
41,190 |
(5.6) |
||||||||||
|
Retail used vehicles sold |
38,836 |
36,216 |
7.2 |
||||||||||
|
Wholesale used vehicles sold |
12,989 |
15,327 |
(15.3) |
||||||||||
|
Total used |
51,825 |
51,543 |
0.5 |
||||||||||
|
AVERAGE RETAIL SALES PRICE: |
|||||||||||||
|
New vehicle retail |
$ |
36,386 |
$ |
36,747 |
(1.0) |
1.2 |
|||||||
|
Used vehicle retail |
$ |
21,094 |
$ |
21,553 |
(2.1) |
(0.1) |
|||||||
|
GROSS PROFIT PER UNIT SOLD: |
|||||||||||||
|
New vehicle retail sales |
$ |
1,836 |
$ |
1,831 |
0.3 |
2.6 |
|||||||
|
Used vehicle retail sales |
$ |
1,231 |
$ |
1,201 |
2.5 |
4.1 |
|||||||
|
Used vehicle wholesale sales |
$ |
35 |
$ |
108 |
(67.6) |
(77.1) |
|||||||
|
Total used |
$ |
931 |
$ |
876 |
6.3 |
7.7 |
|||||||
|
Finance, insurance and other, net (per retail unit) |
$ |
1,459 |
$ |
1,451 |
0.6 |
1.7 |
|||||||
|
OTHER: |
|||||||||||||
|
SG&A expenses |
$ |
327,708 |
$ |
324,347 |
1.0 |
2.9 |
|||||||
|
Adjusted SG&A expenses (1) |
$ |
328,550 |
$ |
324,347 |
1.3 |
3.1 |
|||||||
|
SG&A as % revenues |
11.7 |
11.3 |
|||||||||||
|
Adjusted SG&A as % revenues (1) |
11.7 |
11.3 |
|||||||||||
|
SG&A as % gross profit |
75.9 |
77.3 |
|||||||||||
|
Adjusted SG&A as % gross profit (1) |
76.1 |
77.3 |
|||||||||||
|
Operating margin % |
3.1 |
2.8 |
|||||||||||
|
Adjusted operating margin % (1) |
3.1 |
2.8 |
|||||||||||
|
Pretax margin % |
1.9 |
1.6 |
|||||||||||
|
Adjusted pretax margin % (1) |
1.8 |
1.6 |
|||||||||||
|
INTEREST EXPENSE: |
|||||||||||||
|
Floorplan interest expense |
$ |
(15,703) |
$ |
(14,087) |
11.5 |
12.4 |
|||||||
|
Floorplan assistance |
10,483 |
11,035 |
(5.0) |
(4.9) |
|||||||||
|
Net floorplan expense |
$ |
(5,220) |
$ |
(3,052) |
71.0 |
74.9 |
|||||||
|
Other interest expense, net |
$ |
(18,919) |
$ |
(18,820) |
(0.5) |
1.2 |
|||||||
|
(1) See the section of this release entitled "Non-GAAP Financial Measures" and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP. |
|
Group 1 Automotive, Inc. |
||||||||||
|
Additional Information - Same Store U.S. (1) |
||||||||||
|
(Unaudited) |
||||||||||
|
(Dollars in thousands, except per unit amounts) |
||||||||||
|
Three Months Ended March 31, |
||||||||||
|
2019 |
2018 |
% Increase/(Decrease) |
||||||||
|
REVENUES: |
||||||||||
|
New vehicle retail sales |
$ |
1,004,977 |
$ |
1,061,294 |
(5.3) |
|||||
|
Used vehicle retail sales |
577,645 |
549,242 |
5.2 |
|||||||
|
Used vehicle wholesale sales |
41,874 |
52,539 |
(20.3) |
|||||||
|
Total used |
619,519 |
601,781 |
2.9 |
|||||||
|
Parts and service |
293,980 |
275,288 |
6.8 |
|||||||
|
Finance, insurance and other, net |
93,711 |
94,106 |
(0.4) |
|||||||
|
Total |
$ |
2,012,187 |
$ |
2,032,469 |
(1.0) |
|||||
|
GROSS MARGIN %: |
||||||||||
|
New vehicle retail sales |
4.9 |
4.8 |
||||||||
|
Used vehicle retail sales |
6.5 |
5.9 |
||||||||
|
Used vehicle wholesale sales |
2.9 |
2.7 |
||||||||
|
Total used |
6.2 |
5.7 |
||||||||
|
Parts and service |
53.8 |
53.4 |
||||||||
|
Finance, insurance and other, net |
100.0 |
100.0 |
||||||||
|
Total |
16.9 |
16.1 |
||||||||
|
GROSS PROFIT: |
||||||||||
|
New vehicle retail sales |
$ |
49,404 |
$ |
51,471 |
(4.0) |
|||||
|
Used vehicle retail sales |
37,335 |
32,589 |
14.6 |
|||||||
|
Used vehicle wholesale sales |
1,199 |
1,429 |
(16.1) |
|||||||
|
Total used |
38,534 |
34,018 |
13.3 |
|||||||
|
Parts and service |
158,025 |
146,975 |
7.5 |
|||||||
|
Finance, insurance and other, net |
93,711 |
94,106 |
(0.4) |
|||||||
|
Total |
$ |
339,674 |
$ |
326,570 |
4.0 |
|||||
|
UNITS SOLD: |
||||||||||
|
Retail new vehicles sold |
25,569 |
28,007 |
(8.7) |
|||||||
|
Retail used vehicles sold |
28,389 |
26,635 |
6.6 |
|||||||
|
Wholesale used vehicles sold |
6,921 |
9,171 |
(24.5) |
|||||||
|
Total used |
35,310 |
35,806 |
(1.4) |
|||||||
|
AVERAGE RETAIL SALES PRICE: |
||||||||||
|
New vehicle retail |
$ |
39,305 |
$ |
37,894 |
3.7 |
|||||
|
Used vehicle retail |
$ |
20,347 |
$ |
20,621 |
(1.3) |
|||||
|
GROSS PROFIT PER UNIT SOLD: |
||||||||||
|
New vehicle retail sales |
$ |
1,932 |
$ |
1,838 |
5.1 |
|||||
|
Used vehicle retail sales |
$ |
1,315 |
$ |
1,224 |
7.4 |
|||||
|
Used vehicle wholesale sales |
$ |
173 |
$ |
156 |
10.9 |
|||||
|
Total used |
$ |
1,091 |
$ |
950 |
14.8 |
|||||
|
Finance, insurance and other, net (per retail unit) |
$ |
1,737 |
$ |
1,722 |
0.9 |
|||||
|
OTHER: |
||||||||||
|
SG&A expenses |
$ |
253,287 |
$ |
244,952 |
3.4 |
|||||
|
Adjusted SG&A expenses (2) |
$ |
250,561 |
$ |
244,952 |
2.3 |
|||||
|
SG&A as % revenues |
12.6 |
12.1 |
||||||||
|
Adjusted SG&A as % revenues (2) |
12.5 |
12.1 |
||||||||
|
SG&A as % gross profit |
74.6 |
75.0 |
||||||||
|
Adjusted SG&A as % gross profit (2) |
73.8 |
75.0 |
||||||||
|
Operating margin % |
3.6 |
3.4 |
||||||||
|
Adjusted operating margin % (2) |
3.8 |
3.4 |
||||||||
|
(1) Same Store amounts include the results for the identical months in each period presented in the comparison, commencing with the first full month we owned the dealership and, in the case of dispositions, ending with the last full month we owned it. Same Store results also include the activities of our corporate office. |
|
|
(2) See the section of this release entitled "Non-GAAP Financial Measures" and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP. |
|
Group 1 Automotive, Inc. |
|||||||||||||
|
Additional Information - Same Store U.K. (1) |
|||||||||||||
|
(Unaudited) |
|||||||||||||
|
(Dollars in thousands, except per unit amounts) |
|||||||||||||
|
Three Months Ended March 31, |
|||||||||||||
|
2019 |
2018 |
% |
Constant Currency (2) |
||||||||||
|
REVENUES: |
|||||||||||||
|
New vehicle retail sales |
$ |
280,164 |
$ |
325,262 |
(13.9) |
(8.2) |
|||||||
|
Used vehicle retail sales |
177,855 |
182,918 |
(2.8) |
3.9 |
|||||||||
|
Used vehicle wholesale sales |
41,221 |
44,568 |
(7.5) |
(1.2) |
|||||||||
|
Total used |
219,076 |
227,486 |
(3.7) |
2.9 |
|||||||||
|
Parts and service |
50,745 |
48,224 |
5.2 |
12.4 |
|||||||||
|
Finance, insurance and other, net |
13,658 |
13,467 |
1.4 |
8.1 |
|||||||||
|
Total |
$ |
563,643 |
$ |
614,439 |
(8.3) |
(2.1) |
|||||||
|
GROSS MARGIN %: |
|||||||||||||
|
New vehicle retail sales |
5.5 |
5.4 |
|||||||||||
|
Used vehicle retail sales |
4.0 |
4.5 |
|||||||||||
|
Used vehicle wholesale sales |
(1.9) |
0.2 |
|||||||||||
|
Total used |
2.9 |
3.7 |
|||||||||||
|
Parts and service |
54.9 |
57.0 |
|||||||||||
|
Finance, insurance and other, net |
100.0 |
100.0 |
|||||||||||
|
Total |
11.2 |
10.9 |
|||||||||||
|
GROSS PROFIT: |
|||||||||||||
|
New vehicle retail sales |
$ |
15,493 |
$ |
17,506 |
(11.5) |
(5.9) |
|||||||
|
Used vehicle retail sales |
7,073 |
8,320 |
(15.0) |
(9.2) |
|||||||||
|
Used vehicle wholesale sales |
(788) |
98 |
(904.1) |
(1,018.0) |
|||||||||
|
Total used |
6,285 |
8,418 |
(25.3) |
(21.0) |
|||||||||
|
Parts and service |
27,842 |
27,501 |
1.2 |
8.1 |
|||||||||
|
Finance, insurance and other, net |
13,658 |
13,467 |
1.4 |
8.1 |
|||||||||
|
Total |
$ |
63,278 |
$ |
66,892 |
(5.4) |
0.9 |
|||||||
|
UNITS SOLD: |
|||||||||||||
|
Retail new vehicles sold |
9,215 |
9,657 |
(4.6) |
||||||||||
|
Retail used vehicles sold |
7,291 |
7,369 |
(1.1) |
||||||||||
|
Wholesale used vehicles sold |
4,870 |
5,391 |
(9.7) |
||||||||||
|
Total used |
12,161 |
12,760 |
(4.7) |
||||||||||
|
AVERAGE RETAIL SALES PRICE: |
|||||||||||||
|
New vehicle retail |
$ |
30,403 |
$ |
33,681 |
(9.7) |
(3.8) |
|||||||
|
Used vehicle retail |
$ |
24,394 |
$ |
24,823 |
(1.7) |
5.0 |
|||||||
|
GROSS PROFIT PER UNIT SOLD: |
|||||||||||||
|
New vehicle retail sales |
$ |
1,681 |
$ |
1,813 |
(7.3) |
(1.4) |
|||||||
|
Used vehicle retail sales |
$ |
970 |
$ |
1,129 |
(14.1) |
(8.2) |
|||||||
|
Used vehicle wholesale sales |
$ |
(162) |
$ |
18 |
(1,000.0) |
(1,116.2) |
|||||||
|
Total used |
$ |
517 |
$ |
660 |
(21.7) |
(17.1) |
|||||||
|
Finance, insurance and other, net (per retail unit) |
$ |
827 |
$ |
791 |
4.6 |
11.6 |
|||||||
|
OTHER: |
|||||||||||||
|
SG&A expenses |
$ |
51,288 |
$ |
55,284 |
(7.2) |
(0.9) |
|||||||
|
SG&A as % revenues |
9.1 |
9.0 |
|||||||||||
|
SG&A as % gross profit |
81.1 |
82.6 |
|||||||||||
|
Operating margin % |
1.6 |
1.4 |
|||||||||||
|
(1)Same Store amounts include the results for the identical months in each period presented in the comparison, commencing with the first full month we owned the dealership and, in the case of dispositions, ending with the last full month we owned it. Same Store results also include the activities of our corporate office. |
|
(2) See the section of this release entitled "Non-GAAP Financial Measures" and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP. |
|
Group 1 Automotive, Inc. |
|||||||||||||
|
Additional Information - Same Store Brazil (1) |
|||||||||||||
|
(Unaudited) |
|||||||||||||
|
(Dollars in thousands, except per unit amounts) |
|||||||||||||
|
Three Months Ended March 31, |
|||||||||||||
|
2019 |
2018 |
% |
Constant Currency (2) |
||||||||||
|
REVENUES: |
|||||||||||||
|
New vehicle retail sales |
$ |
56,916 |
$ |
69,233 |
(17.8) |
(4.6) |
|||||||
|
Used vehicle retail sales |
19,443 |
24,191 |
(19.6) |
(6.8) |
|||||||||
|
Used vehicle wholesale sales |
4,050 |
3,842 |
5.4 |
22.9 |
|||||||||
|
Total used |
23,493 |
28,033 |
(16.2) |
(2.8) |
|||||||||
|
Parts and service |
11,270 |
11,860 |
(5.0) |
10.2 |
|||||||||
|
Finance, insurance and other, net |
1,715 |
1,872 |
(8.4) |
6.0 |
|||||||||
|
Total |
$ |
93,394 |
$ |
110,998 |
(15.9) |
(2.4) |
|||||||
|
GROSS MARGIN %: |
|||||||||||||
|
New vehicle retail sales |
6.0 |
5.5 |
|||||||||||
|
Used vehicle retail sales |
5.7 |
6.0 |
|||||||||||
|
Used vehicle wholesale sales |
7.3 |
3.9 |
|||||||||||
|
Total used |
6.0 |
5.7 |
|||||||||||
|
Parts and service |
43.5 |
45.3 |
|||||||||||
|
Finance, insurance and other, net |
100.0 |
100.0 |
|||||||||||
|
Total |
12.2 |
11.4 |
|||||||||||
|
GROSS PROFIT: |
|||||||||||||
|
New vehicle retail sales |
$ |
3,415 |
$ |
3,781 |
(9.7) |
4.8 |
|||||||
|
Used vehicle retail sales |
1,102 |
1,452 |
(24.1) |
(11.8) |
|||||||||
|
Used vehicle wholesale sales |
297 |
151 |
96.7 |
127.9 |
|||||||||
|
Total used |
1,399 |
1,603 |
(12.7) |
1.3 |
|||||||||
|
Parts and service |
4,906 |
5,373 |
(8.7) |
5.9 |
|||||||||
|
Finance, insurance and other, net |
1,715 |
1,872 |
(8.4) |
6.0 |
|||||||||
|
Total |
$ |
11,435 |
$ |
12,629 |
(9.5) |
5.0 |
|||||||
|
UNITS SOLD: |
|||||||||||||
|
Retail new vehicles sold |
1,850 |
2,067 |
(10.5) |
||||||||||
|
Retail used vehicles sold |
991 |
1,071 |
(7.5) |
||||||||||
|
Wholesale used vehicles sold |
411 |
357 |
15.1 |
||||||||||
|
Total used |
1,402 |
1,428 |
(1.8) |
||||||||||
|
AVERAGE RETAIL SALES PRICE: |
|||||||||||||
|
New vehicle retail |
$ |
30,765 |
$ |
33,494 |
(8.1) |
6.6 |
|||||||
|
Used vehicle retail |
$ |
19,620 |
$ |
22,587 |
(13.1) |
0.7 |
|||||||
|
GROSS PROFIT PER UNIT SOLD: |
|||||||||||||
|
New vehicle retail sales |
$ |
1,846 |
$ |
1,829 |
0.9 |
17.1 |
|||||||
|
Used vehicle retail sales |
$ |
1,112 |
$ |
1,356 |
(18.0) |
(4.7) |
|||||||
|
Used vehicle wholesale sales |
$ |
723 |
$ |
423 |
70.9 |
97.9 |
|||||||
|
Total used |
$ |
998 |
$ |
1,123 |
(11.1) |
3.2 |
|||||||
|
Finance, insurance and other, net (per retail unit) |
$ |
604 |
$ |
597 |
1.2 |
17.1 |
|||||||
|
OTHER: |
|||||||||||||
|
SG&A expenses |
$ |
11,062 |
$ |
11,731 |
(5.7) |
9.4 |
|||||||
|
SG&A as % revenues |
11.8 |
10.6 |
|||||||||||
|
SG&A as % gross profit |
96.7 |
92.9 |
|||||||||||
|
Operating margin % |
— |
0.5 |
|||||||||||
|
(1) Same Store amounts include the results for the identical months in each period presented in the comparison, commencing with the first full month we owned the dealership and, in the case of dispositions, ending with the last full month we owned it. Same Store results also include the activities of our corporate office. |
|
(2) See the section of this release entitled "Non-GAAP Financial Measures" and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP. |
|
Group 1 Automotive, Inc. |
||||||||||||||
|
Additional Information - Same Store Consolidated (1) |
||||||||||||||
|
(Unaudited) |
||||||||||||||
|
(Dollars in thousands, except per unit amounts) |
||||||||||||||
|
Three Months Ended March 31, |
||||||||||||||
|
2019 |
2018 |
% |
Constant Currency (2) |
|||||||||||
|
REVENUES: |
||||||||||||||
|
New vehicle retail sales |
$ |
1,342,057 |
$ |
1,455,789 |
(7.8) |
(5.9) |
||||||||
|
Used vehicle retail sales |
774,943 |
756,351 |
2.5 |
4.5 |
||||||||||
|
Used vehicle wholesale sales |
87,145 |
100,949 |
(13.7) |
(10.2) |
||||||||||
|
Total used |
862,088 |
857,300 |
0.6 |
2.7 |
||||||||||
|
Parts and service |
355,995 |
335,372 |
6.1 |
7.7 |
||||||||||
|
Finance, insurance and other, net |
109,084 |
109,445 |
(0.3) |
0.7 |
||||||||||
|
Total |
$ |
2,669,224 |
$ |
2,757,906 |
(3.2) |
(1.3) |
||||||||
|
GROSS MARGIN %: |
||||||||||||||
|
New vehicle retail sales |
5.1 |
5.0 |
||||||||||||
|
Used vehicle retail sales |
5.9 |
5.6 |
||||||||||||
|
Used vehicle wholesale sales |
0.8 |
1.7 |
||||||||||||
|
Total used |
5.4 |
5.1 |
||||||||||||
|
Parts and service |
53.6 |
53.6 |
||||||||||||
|
Finance, insurance and other, net |
100.0 |
100.0 |
||||||||||||
|
Total |
15.5 |
14.7 |
||||||||||||
|
GROSS PROFIT: |
||||||||||||||
|
New vehicle retail sales |
$ |
68,312 |
$ |
72,758 |
(6.1) |
(4.0) |
||||||||
|
Used vehicle retail sales |
45,510 |
42,361 |
7.4 |
9.0 |
||||||||||
|
Used vehicle wholesale sales |
708 |
1,678 |
(57.8) |
(62.0) |
||||||||||
|
Total used |
46,218 |
44,039 |
4.9 |
6.3 |
||||||||||
|
Parts and service |
190,773 |
179,849 |
6.1 |
7.6 |
||||||||||
|
Finance, insurance and other, net |
109,084 |
109,445 |
(0.3) |
0.7 |
||||||||||
|
Total |
$ |
414,387 |
$ |
406,091 |
2.0 |
3.5 |
||||||||
|
UNITS SOLD: |
||||||||||||||
|
Retail new vehicles sold |
36,634 |
39,731 |
(7.8) |
|||||||||||
|
Retail used vehicles sold |
36,671 |
35,075 |
4.6 |
|||||||||||
|
Wholesale used vehicles sold |
12,202 |
14,919 |
(18.2) |
|||||||||||
|
Total used |
48,873 |
49,994 |
(2.2) |
|||||||||||
|
AVERAGE RETAIL SALES PRICE: |
||||||||||||||
|
New vehicle retail |
$ |
36,634 |
$ |
36,641 |
— |
2.0 |
||||||||
|
Used vehicle retail |
$ |
21,132 |
$ |
21,564 |
(2.0) |
(0.1) |
||||||||
|
GROSS PROFIT PER UNIT SOLD: |
||||||||||||||
|
New vehicle retail sales |
$ |
1,865 |
$ |
1,831 |
1.9 |
4.1 |
||||||||
|
Used vehicle retail sales |
$ |
1,241 |
$ |
1,208 |
2.7 |
4.3 |
||||||||
|
Used vehicle wholesale sales |
$ |
58 |
$ |
112 |
(48.2) |
(53.5) |
||||||||
|
Total used |
$ |
946 |
$ |
881 |
7.4 |
8.7 |
||||||||
|
Finance, insurance and other, net (per retail unit) |
$ |
1,488 |
$ |
1,463 |
1.7 |
2.8 |
||||||||
|
OTHER: |
||||||||||||||
|
SG&A expenses |
$ |
315,637 |
$ |
311,967 |
1.2 |
2.9 |
||||||||
|
Adjusted SG&A expenses (2) |
$ |
312,911 |
$ |
311,967 |
0.3 |
2.0 |
||||||||
|
SG&A as % revenues |
11.8 |
11.3 |
||||||||||||
|
Adjusted SG&A as % revenues (2) |
11.7 |
11.3 |
||||||||||||
|
SG&A as % gross profit |
76.2 |
76.8 |
||||||||||||
|
Adjusted SG&A as % gross profit (2) |
75.5 |
76.8 |
||||||||||||
|
Operating margin % |
3.1 |
2.8 |
||||||||||||
|
Adjusted operating margin % (2) |
3.2 |
2.8 |
||||||||||||
|
(1) Same Store amounts include the results for the identical months in each period presented in the comparison, commencing with the first full month we owned the dealership and, in the case of dispositions, ending with the last full month we owned it. Same Store results also include the activities of our corporate office. |
|
(2) See the section of this release entitled "Non-GAAP Financial Measures " and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP. |
|
Group 1 Automotive, Inc. |
|||||||||
|
Reconciliation of Certain Non-GAAP Financial Measures - U.S. |
|||||||||
|
(Unaudited) |
|||||||||
|
(Dollars in thousands) |
|||||||||
|
Three Months Ended March 31, |
|||||||||
|
2019 |
2018 |
% Increase/ |
|||||||
|
SG&A RECONCILIATION: |
|||||||||
|
As reported |
$ |
256,153 |
$ |
252,941 |
1.3 |
||||
|
Pre-tax adjustments: |
|||||||||
|
Catastrophic events |
(1,973) |
— |
|||||||
|
Gain (loss) on real estate and dealership transactions |
5,216 |
— |
|||||||
|
Legal settlements |
(1,829) |
— |
|||||||
|
Adjusted SG&A (1) |
$ |
257,567 |
$ |
252,941 |
1.8 |
||||
|
SG&A AS % REVENUES: |
|||||||||
|
Unadjusted |
12.4 |
12.1 |
|||||||
|
Adjusted (1) |
12.5 |
12.1 |
|||||||
|
SG&A AS % GROSS PROFIT: |
|||||||||
|
Unadjusted |
73.8 |
75.4 |
|||||||
|
Adjusted (1) |
74.2 |
75.4 |
|||||||
|
OPERATING MARGIN %: |
|||||||||
|
Unadjusted |
3.8 |
3.3 |
|||||||
|
Adjusted (1), (2) |
3.7 |
3.3 |
|||||||
|
PRETAX MARGIN %: |
|||||||||
|
Unadjusted |
2.2 |
1.9 |
|||||||
|
Adjusted (1), (2) |
2.2 |
1.9 |
|||||||
|
SAME STORE SG&A RECONCILIATION: |
|||||||||
|
As reported |
$ |
253,287 |
$ |
244,952 |
3.4 |
||||
|
Pre-tax adjustments: |
|||||||||
|
Catastrophic events |
(1,973) |
— |
|||||||
|
Gain (loss) on real estate and dealership transactions |
1,076 |
— |
|||||||
|
Legal settlements |
(1,829) |
— |
|||||||
|
Adjusted Same Store SG&A (1) |
$ |
250,561 |
$ |
244,952 |
2.3 |
||||
|
SAME STORE SG&A AS % REVENUES: |
|||||||||
|
Unadjusted |
12.6 |
12.1 |
|||||||
|
Adjusted (1) |
12.5 |
12.1 |
|||||||
|
SAME STORE SG&A AS % GROSS PROFIT: |
|||||||||
|
Unadjusted |
74.6 |
75.0 |
|||||||
|
Adjusted (1) |
73.8 |
75.0 |
|||||||
|
SAME STORE OPERATING MARGIN %: |
|||||||||
|
Unadjusted |
3.6 |
3.4 |
|||||||
|
Adjusted (1), (3) |
3.8 |
3.4 |
|||||||
|
(1) See the section of this release entitled "Non-GAAP Financial Measures" for information regarding non-GAAP financial measures and certain selected items that the Company believes impact comparability of financial results between reporting periods. |
|
(2) Excludes the impact of SG&A reconciling items above for the three months ended March 31, 2019. |
|
(3) Excludes the impact of Same Store SG&A reconciling items above for the three months ended March 31, 2019. |
|
Group 1 Automotive, Inc. |
||||||||||
|
Reconciliation of Certain Non-GAAP Financial Measures - Brazil |
||||||||||
|
(Unaudited) |
||||||||||
|
(Dollars in thousands) |
||||||||||
|
Three Months Ended March 31, |
||||||||||
|
2019 |
2018 |
% |
||||||||
|
SG&A RECONCILIATION: |
||||||||||
|
As reported |
$ |
12,363 |
$ |
11,810 |
4.7 |
|||||
|
Pre-tax adjustments: |
||||||||||
|
Legal settlements |
(572) |
— |
||||||||
|
Adjusted SG&A (1) |
$ |
11,791 |
$ |
11,810 |
(0.2) |
|||||
|
SG&A AS % REVENUES: |
||||||||||
|
Unadjusted |
12.0 |
10.6 |
||||||||
|
Adjusted (1) |
11.4 |
10.6 |
||||||||
|
SG&A AS % GROSS PROFIT: |
||||||||||
|
Unadjusted |
98.2 |
93.5 |
||||||||
|
Adjusted (1) |
93.7 |
93.5 |
||||||||
|
OPERATING MARGIN %: |
||||||||||
|
Unadjusted |
(0.2) |
0.4 |
||||||||
|
Adjusted (1), (2) |
0.4 |
0.4 |
||||||||
|
PRETAX MARGIN %: |
||||||||||
|
Unadjusted |
(0.4) |
(0.1) |
||||||||
|
Adjusted (1), (2) |
0.1 |
(0.1) |
||||||||
|
(1) See the section of this release entitled "Non-GAAP Financial Measures" for information regarding non-GAAP financial measures and certain selected items that the Company believes impact comparability of financial results between reporting periods. |
|
(2) Excludes the impact of SG&A reconciling items above for the three months ended March 31, 2019. |
|
Group 1 Automotive, Inc. |
|||||||||
|
Reconciliation of Certain Non-GAAP Financial Measures - Consolidated |
|||||||||
|
(Unaudited) |
|||||||||
|
(Dollars in thousands, except per share amounts) |
|||||||||
|
Three Months Ended March 31, |
|||||||||
|
2019 |
2018 |
% |
|||||||
|
NET INCOME RECONCILIATION: |
|||||||||
|
As reported |
|||||||||
|
Pretax Net Income |
$ |
52,176 |
$ |
46,167 |
|||||
|
Income Tax Provision |
(13,528) |
(10,353) |
|||||||
|
Net Income |
$ |
38,648 |
$ |
35,814 |
7.9 |
||||
|
Effective Tax Rate |
25.9% |
22.4% |
|||||||
|
Adjustments: |
|||||||||
|
Catastrophic events |
|||||||||
|
Pre-tax |
$ |
1,973 |
$ |
— |
|||||
|
Tax impact |
$ |
(519) |
$ |
— |
|||||
|
(Gain) loss on real estate and dealership transactions |
|||||||||
|
Pre-tax |
$ |
(5,216) |
$ |
— |
|||||
|
Tax impact |
$ |
1,381 |
$ |
— |
|||||
|
Legal settlements |
|||||||||
|
Pre-tax |
$ |
2,401 |
$ |
— |
|||||
|
Tax impact |
$ |
(481) |
$ |
— |
|||||
|
Adjusted |
|||||||||
|
Pretax Net Income |
$ |
51,334 |
$ |
46,167 |
|||||
|
Income Tax Provision |
(13,147) |
(10,353) |
|||||||
|
Adjusted net income (1) |
$ |
38,187 |
$ |
35,814 |
6.6 |
||||
|
Effective Tax Rate |
25.6% |
22.4% |
|||||||
|
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED |
|||||||||
|
COMMON SHARES RECONCILIATION: |
|||||||||
|
Adjusted net income (1) |
$ |
38,187 |
$ |
35,814 |
6.6 |
||||
|
Less: Adjusted earnings allocated to participating securities |
1,437 |
1,208 |
19.0 |
||||||
|
Adjusted net income available to diluted common shares (1) |
$ |
36,750 |
$ |
34,606 |
6.2 |
||||
|
DILUTED (LOSS) INCOME PER COMMON SHARE RECONCILIATION: |
|||||||||
|
As reported |
$ |
2.08 |
$ |
1.70 |
22.4 |
||||
|
After-tax adjustments: |
|||||||||
|
Catastrophic events |
0.08 |
— |
|||||||
|
(Gain) loss on real estate and dealership transactions |
(0.20) |
— |
|||||||
|
Legal settlements |
0.10 |
— |
|||||||
|
Adjusted diluted income per share (1) |
$ |
2.06 |
$ |
1.70 |
21.2 |
||||
|
SG&A RECONCILIATION: |
|||||||||
|
As reported |
$ |
327,708 |
$ |
324,347 |
1.0 |
||||
|
Pre-tax adjustments: |
|||||||||
|
Catastrophic events |
(1,973) |
— |
|||||||
|
Gain (loss) on real estate and dealership transactions |
5,216 |
— |
|||||||
|
Legal settlements |
(2,401) |
— |
|||||||
|
Adjusted SG&A (1) |
$ |
328,550 |
$ |
324,347 |
1.3 |
||||
|
SG&A AS % REVENUES: |
|||||||||
|
Unadjusted |
11.7 |
11.3 |
|||||||
|
Adjusted (1) |
11.7 |
11.3 |
|||||||
|
SG&A AS % GROSS PROFIT: |
|||||||||
|
Unadjusted |
75.9 |
77.3 |
|||||||
|
Adjusted (1) |
76.1 |
77.3 |
|||||||
|
OPERATING MARGIN %: |
|||||||||
|
Unadjusted |
3.1 |
2.8 |
|||||||
|
Adjusted (1), (2) |
3.1 |
2.8 |
|||||||
|
PRETAX MARGIN %: |
|||||||||
|
Unadjusted |
1.9 |
1.6 |
|||||||
|
Adjusted (1), (2) |
1.8 |
1.6 |
|||||||
|
SAME STORE SG&A RECONCILIATION: |
|||||||||
|
As reported |
$ |
315,637 |
$ |
311,967 |
1.2 |
||||
|
Pre-tax adjustments: |
|||||||||
|
Catastrophic events |
(1,973) |
— |
|||||||
|
Gain (loss) on real estate and dealership transactions |
1,076 |
— |
|||||||
|
Legal settlements |
(1,829) |
— |
|||||||
|
Adjusted Same Store SG&A (1) |
$ |
312,911 |
$ |
311,967 |
0.3 |
||||
|
SAME STORE SG&A AS % REVENUES: |
|||||||||
|
Unadjusted |
11.8 |
11.3 |
|||||||
|
Adjusted (1) |
11.7 |
11.3 |
|||||||
|
SAME STORE SG&A AS % GROSS PROFIT: |
|||||||||
|
Unadjusted |
76.2 |
76.8 |
|||||||
|
Adjusted (1) |
75.5 |
76.8 |
|||||||
|
SAME STORE OPERATING MARGIN %: |
|||||||||
|
Unadjusted |
3.1 |
2.8 |
|||||||
|
Adjusted (1), (3) |
3.2 |
2.8 |
|||||||
|
(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 for the three months ended March 31, 2019. |
|
(3) Excludes the impact of Same Store SG&A reconciling items above for the three months ended March 31, 2019. |
SOURCE Group 1 Automotive, Inc.
