GPI
$55.47
Group 1 Automotive
($.98)
(1.74%)
Earnings Details
3rd Quarter September 2018
Thursday, October 25, 2018 7:07:00 AM
Tweet Share Watch
Summary

Group 1 Automotive (GPI) Recent Earnings

Group 1 Automotive (GPI) reported 3rd Quarter September 2018 earnings of $2.47 per share on revenue of $2.9 billion. The consensus earnings estimate was $2.39 per share. Revenue fell 4.1% compared to the same quarter a year ago.

Group 1 Automotive Inc sells new and used cars and light trucks; it also arranges the related vehicle financing. It’s activities include sale service and insurance contracts; provides automotive maintenance and repair services; and sell vehicle parts.

Results
Reported Earnings
$2.47
Earnings Whisper
-
Consensus Estimate
$2.39
Reported Revenue
$2.89 Bil
Revenue Estimate
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Group 1 Automotive Announces Third Quarter 2018 Financial Results

HOUSTON, Oct. 25, 2018 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), ("Group 1" or the "Company"), an international, Fortune 500 automotive retailer, today reported 2018 third quarter net income of $34.8 million, diluted earnings per common share of $1.74, adjusted net income (a non-GAAP measure) of $49.2 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $2.47.

Third quarter 2018 adjusted net income and diluted earnings per share exclude approximately $14.4 million of net after-tax adjustments, or $0.73 per common share. These adjustments are more than explained by non-cash asset impairments of $17.7 million and legal settlement reserve adjustments of $1.6 million, which were partially offset by gains on real estate and dealership transactions of $4.2 million and reduced tax liabilities of $0.7 million due to the corporate income tax rate enacted by the U.S. Tax Reform Bill.

"Although our results were impacted by some unusual factors, especially in the U.K., we are pleased with our quarterly results, which established a new all-time quarterly record of $2.47 per share on an adjusted basis," said Earl J. Hesterberg, Group 1's president and chief executive officer.  "Strong used vehicle results and good cost control contributed positively to the quarter.  However, the severe lack of 2019 model vehicles to sell in the U.K. during a major plate change sales month was unexpected and very damaging to our business.  We expect manufacturer supply to improve across the U.K. by year end."

Consolidated Results for Third Quarter 2018 (year-over-year comparable basis)
For ease of comparison, we have included constant currency metrics (a non-GAAP measure) both below (shown in parenthesis) and in the financial tables that follow:

  • Total revenue decreased 4.1 percent (decreased 3.1 percent) to $2.9 billion.
  • Total gross profit increased 0.9 percent (increased 1.8 percent), to $435.1 million.
  • New vehicle revenues decreased 10.0 percent (decreased 8.9 percent) on a 9.8 percent decrease in unit sales, reflecting difficult year-over-year comparisons as a result of very strong replacement demand from Hurricane Harvey in the third quarter 2017 and emission testing-related supply constraints in the UK in September 2018. New vehicle gross profit decreased 12.1 percent (decreased 10.5 percent), to $77.6 million.
  • Retail used vehicle revenues increased 6.6 percent (7.5 percent) on 9.7 percent higher unit sales. Retail used vehicle gross profit increased 6.4 percent (7.2 percent), to $50.2 million. Total used vehicle gross profit was up 6.2 percent (7.1 percent), to $49.8 million.
  • Parts and service gross profit increased 3.5 percent (4.2 percent) on revenue growth of 3.3 percent (4.2 percent). Same Store parts and service gross profit increased 1.8 percent (2.5 percent) on Same Store parts and service revenue growth of 2.0 percent (2.9 percent).
  • Finance and Insurance (F&I) gross profit per retail unit (PRU) increased 6.4 percent (7.0 percent), to $1,429.
  • Selling, General and Administrative (SG&A) expenses as a percent of gross profit decreased 330 basis points, to 72.8 percent. Adjusted Same Store SG&A as a percent of gross profit increased 110 basis points, to 73.3 percent.

Segment Results for Third Quarter 2018 (year-over-year comparable basis)

  • United States:
    The Company's U.S. operations accounted for 76.1 percent of total revenues and 81.0 percent of total gross profit. Total U.S. revenues were $2.2 billion, a decrease of 4.4 percent, reflecting the aforementioned challenging year-over-year comparisons from Hurricane Harvey in 3Q17.  New vehicle revenues decreased 7.7 percent.  F&I revenues increased 5.4 percent, parts and service revenue increased 1.9 percent, and retail used vehicle revenue increased 1.8 percent.  

    F&I gross profit PRU increased $122, or 7.8 percent per unit, to $1,688; and total gross profit was about flat at $352.5 million.  New vehicle retail gross profit PRU decreased $104, to $1,787. Total used vehicle gross profit PRU increased $18, to $1,068.

    SG&A expenses as a percent of gross profit improved 530 basis points, to 68.7 percent; and operating margin expanded 30 basis points, to 3.3 percent. Adjusted SG&A expenses as a percent of gross profit increased 60 basis points, to 70.6 percent. Adjusted operating margin was flat at 4.1 percent.
     
  • United Kingdom:
    The Company's U.K. operations accounted for 20.3 percent of total revenues and 15.8 percent of total gross profit.  As of September 1, 2018, all light vehicles sold in the EU are subject to mandatory emissions standards testing known as the Worldwide Harmonised Light Vehicle Test Procedure ("WLTP").  This testing procedure created a serious inventory supply delay in the release of many 2019 model year vehicles for sale, which resulted in a 10.2 percent industry sales decrease for the third quarter 2018 and a 20.5 percent industry decrease in the important sales month of September.  Various brands were more impacted than others.  The Company's most significantly impacted brand was Audi, which experienced an industry sales decrease of 28.6 percent for the third quarter 2018.  This manufacturer supply issue resulted in a Same Store new vehicle revenues decrease of 26.2 percent (decreased 25.3 percent) and Same Store new vehicle units sold decrease of 21.5 percent.  On a constant currency basis, strong Same Store used sales (up 14.3 percent) and after sales growth (up 5.9 percent) were partial offsets. The Company's total U.K. revenues decreased 0.8 percent (no change), to $585.9 million.  Consistent with the quarterly industry decrease, Same Store U.K. revenues decreased 11.0 percent (decreased 10.1 percent), to $496.4 million

    Total gross profit increased 8.1 percent (9.0 percent), to $68.7 million, while Same Store gross profit decreased 4.3 percent (decreased 3.4 percent), to $58.0 million.

    SG&A expenses as a percent of gross profit increased 290 basis points, to 86.9 percent; and operating margin decreased 30 basis points, to 1.0 percent. Same Store SG&A expenses as a percent of gross profit increased 580 basis points, to 87.7 percent; and Same Store operating margin decreased 70 basis points, to 0.9 percent, reflecting the deleveraging impact of the reduced new vehicle volumes.
     
  • Brazil:
    The Company's Brazilian operations accounted for 3.6 percent of total revenues and 3.2 percent of total gross profit.  The Company's Same Store new vehicle revenue decreased 24.3 percent (decreased 5.5 percent), with units down 8.9 percent. Same store total revenues decreased 19.4 percent (increased 0.5 percent), with the constant currency increase driven by revenue growth of 17.2 percent in F&I, 14.3 percent in total used vehicles, and 7.6 percent in parts & service. SG&A expenses as a percent of gross profit increased 14.6 percentage points, to 106.8 percent. Adjusted Same Store SG&A expenses as a percent of gross profit improved 460 basis points, to 85.1 percent

Share Repurchase Authorization

During the third quarter of 2018, the Company repurchased 789,509 shares at an average price per common share of $69.77, for a total of $55.1 million. Under SEC Rule 10b5-1, from October 1, 2018 to October 25, 2018, the Company repurchased an additional 399,872 shares at an average price per common share of $62.52, for a total of $25.0 million. Year-to-date through October 25, 2018, the Company has repurchased 1,935,738 shares at an average price per common share of $67.86, for a total of $131.4 million. These repurchases represented approximately 9.5 percent of the Company's share float at the beginning of the year and reduced the total outstanding share count to approximately 18.6 million common shares as of October 25, 2018.

On October 25, 2018, the Company's board of directors increased Group 1's common stock share repurchase authorization to $100.0 million.

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 August 2018, the Company disposed of Ford Escondido, which generated approximately $60 million in trailing-twelve-month revenues.

Year-to-date 2018, the Company has acquired a total of 14 franchises, which are expected to generate an estimated $530 million in annual revenues; and the Company has disposed of 4 franchises that generated approximately $175 million in trailing-twelve-month revenues.

Third Quarter 2018 Earnings Conference Call Details

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

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

4290144

A telephonic replay will be available following the call through November 1, 2018 by dialing:

Domestic:

1-877-344-7529

International:

1-412-317-0088

Replay ID:

10125481

ABOUT GROUP 1 AUTOMOTIVE, INC.
Group 1 owns and operates 181 automotive dealerships, 237 franchises, and 47 collision centers in the United States, the United Kingdom and Brazil that offer 32 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service contracts; provides automotive maintenance and repair services; and sells vehicle parts.

Investors please visit www.group1corp.com, www.group1auto.com, www.group1collision.com, www.facebook.com/group1auto, and www.twitter.com/group1auto, where Group 1 discloses additional information about the Company, its business, and its results of operations.

FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements related to future, not past, events and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. In this context, the forward-looking statements often include statements regarding our goals, plans, projections and guidance regarding our financial position, results of operations, market position, pending and potential future acquisitions and business strategy, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should," "foresee," "may" or "will" and similar expressions. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Any such forward-looking statements are not assurances of future performance and involve risks and uncertainties that may cause actual results to differ materially from those set forth in the statements. These risks and uncertainties include, among other things, (a) general economic and business conditions, (b) the level of manufacturer incentives, (c) the future regulatory environment, (d) our ability to obtain an inventory of desirable new and used vehicles, (e) our relationship with our automobile manufacturers and the willingness of manufacturers to approve future acquisitions, (f) our cost of financing and the availability of credit for consumers, (g) our ability to complete acquisitions and dispositions and the risks associated therewith, (h) foreign exchange controls and currency fluctuations, and (i) our ability to retain key personnel. For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with the SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.

NON-GAAP FINANCIAL MEASURES
In addition to evaluating the financial condition and results of our operations in accordance with GAAP, from time to time our management evaluates and analyzes results and any impact on the Company of strategic decisions and actions relating to, among other things, cost reduction, growth, and profitability improvement initiatives, and other events outside of normal, or "core," business and operations, by considering alternative financial measures not prepared in accordance with GAAP. This includes evaluating measures such as adjusted selling, general and administrative expenses, adjusted net income and adjusted diluted earnings per share. These adjusted measures are not measures of financial performance under U.S. GAAP, but are instead considered non-GAAP financial performance measures. Non-GAAP measures do not have definitions under GAAP and may be defined differently by and not be comparable to similarly titled measures used by other companies. As a result, any non-GAAP financial measures considered and evaluated by management are reviewed in conjunction with a review of the most directly comparable measures calculated in accordance with GAAP. We caution investors not to place undue reliance on such non-GAAP measures, but also to consider them with the most directly comparable GAAP measures. In our evaluation of results from time to time, we exclude items that do not arise directly from core operations, such as non-cash asset impairment charges, gains and losses on dealership franchise or real estate transactions, and catastrophic weather events such as hail storms, hurricanes, and snow storms. Because these non-core charges and gains materially affect the Company's financial condition or results in the specific period in which they are recognized, management also evaluates, and makes resource allocation and performance evaluation decisions based on, the related non-GAAP measures excluding such items.

In addition to using such non-GAAP measures to evaluate results in a specific period, management believes that such measures may provide more complete and consistent comparisons of operational performance on a period-over-period historical basis and a better indication of expected future trends. Our management also uses these adjusted measures in conjunction with U.S. GAAP financial measures to assess our business, including communication with our Board of Directors, investors and industry analysts concerning financial performance. We disclose these non-GAAP measures, and the related reconciliations, because we believe investors use these metrics in evaluating longer-term period-over-period performance, and to allow investors to better understand and evaluate the information used by management to assess operating performance. The exclusion of certain expenses in the calculation of non-GAAP financial measures should not be construed as an inference that these costs are unusual or infrequent. We anticipate excluding these expenses in the future presentation of our non-GAAP financial measures.

In addition, we evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our underlying business and results of operations, consistent with how we evaluate our performance. We calculate constant currency percentages by converting our current period reported results for entities reporting in currencies other than United States dollars using comparative period exchange rates rather than the actual exchange rates in effect during the respective periods. The constant currency performance measures should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with U.S. GAAP.

Investor contacts:
Sheila Roth
Manager, Investor Relations
Group
1 Automotive, Inc.
713-647-5741 | sroth@group1auto.com

Media contacts:
Pete DeLongchamps
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 September 30


2018


2017


% Increase/
(Decrease)

REVENUES:






New vehicle retail sales

$ 1,539,498


$ 1,710,241


(10.0)

Used vehicle retail sales

792,405


743,038


6.6

Used vehicle wholesale sales

86,570


104,827


(17.4)

Parts and service

354,501


343,193


3.3

Finance, insurance and other, net

116,084


110,993


4.6

Total revenues

2,889,058


3,012,292


(4.1)







COST OF SALES:






New vehicle retail sales

1,461,896


1,621,909


(9.9)

Used vehicle retail sales

742,250


695,915


6.7

Used vehicle wholesale sales

86,884


105,012


(17.3)

Parts and service

162,927


158,036


3.1

Total cost of sales

2,453,957


2,580,872


(4.9)







GROSS PROFIT

435,101


431,420


0.9







SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

316,771


328,327


(3.5)







DEPRECIATION AND AMORTIZATION EXPENSE

16,981


15,059


12.8







ASSET IMPAIRMENTS

23,159


9,526


143.1







OPERATING INCOME

78,190


78,508


(0.4)







OTHER EXPENSE:






Floorplan interest expense

(14,685)


(13,491)


8.9

Other interest expense, net

(19,140)


(17,874)


7.1

INCOME BEFORE INCOME TAXES

44,365


47,143


(5.9)







PROVISION FOR INCOME TAXES

(9,587)


(17,262)


(44.5)







NET INCOME 

$      34,778


$      29,881


16.4

Less: Earnings allocated to participating securities

$        1,181


$        1,023


15.4

Earnings available to diluted common shares

$      33,597


$      28,858


16.4

DILUTED EARNINGS PER SHARE

$          1.74


$          1.43


21.7

Weighted average dilutive common shares outstanding

19,261


20,225


(4.8)

Weighted average participating securities

684


724


(5.5)

Total weighted average shares outstanding

19,945


20,949


(4.8)








 Nine Months Ended September 30


2018


2017


% Increase/
(Decrease)

REVENUES:






New vehicle retail sales

$ 4,608,658


$ 4,496,222


2.5

Used vehicle retail sales

2,394,828


2,089,914


14.6

Used vehicle wholesale sales

283,453


308,361


(8.1)

Parts and service

1,062,145


994,522


6.8

Finance, insurance and other, net

343,462


314,297


9.3

Total revenues

8,692,546


8,203,316


6.0







COST OF SALES:






New vehicle retail sales

4,379,047


4,263,752


2.7

Used vehicle retail sales

2,249,964


1,952,873


15.2

Used vehicle wholesale sales

281,871


308,713


(8.7)

Parts and service

488,637


458,144


6.7

Total cost of sales

7,399,519


6,983,482


6.0







GROSS PROFIT

1,293,027


1,219,834


6.0







SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

949,210


916,674


3.5







DEPRECIATION AND AMORTIZATION EXPENSE

49,961


42,758


16.8







ASSET IMPAIRMENTS

27,427


9,526


187.9







OPERATING INCOME

266,429


250,876


6.2







OTHER EXPENSE:






Floorplan interest expense

(43,335)


(38,659)


12.1

Other interest expense, net

(57,374)


(52,188)


9.9

INCOME BEFORE INCOME TAXES

165,720


160,029


3.6







PROVISION FOR INCOME TAXES

(38,666)


(57,076)


(32.3)







NET INCOME

$    127,054


$    102,953


23.4

Less: Earnings allocated to participating securities

$        4,306


$        3,659


17.7

Earnings available to diluted common shares

$    122,748


$      99,294


23.6

DILUTED EARNINGS PER SHARE

$          6.18


$          4.85


27.4

Weighted average dilutive common shares outstanding

19,868


20,480


(3.0)

Weighted average participating securities

702


767


(8.5)

Total weighted average shares outstanding

20,570


21,247


(3.2)

 

Group 1 Automotive, Inc.

Consolidated Balance Sheets

(Dollars in thousands)








September 30,
2018


December 31,
2017


% Increase/
(Decrease)

 ASSETS: 

(Unaudited)





 CURRENT ASSETS: 






 Cash and cash equivalents 

$           32,027


$          28,787


11.3

 Contracts in transit and vehicle receivables, net 

235,609


306,433


(23.1)

 Accounts and notes receivable, net 

169,318


188,611


(10.2)

 Inventories, net 

1,733,756


1,763,293


(1.7)

 Prepaid expenses and other current assets 

77,996


42,062


85.4

 Total current assets 

2,248,706


2,329,186


(3.5)

 PROPERTY AND EQUIPMENT, net 

1,350,929


1,318,959


2.4

 GOODWILL AND INTANGIBLE FRANCHISE RIGHTS 

1,245,056


1,198,666


3.9

 OTHER ASSETS 

36,175


24,254


49.2

 Total assets 

$      4,880,866


$     4,871,065


0.2







 LIABILITIES AND STOCKHOLDERS' EQUITY: 






 CURRENT LIABILITIES: 






 Floorplan notes payable - credit facility and other 

$      1,155,034


$     1,240,695


(6.9)

 Offset account related to floorplan notes payable - credit facility 

(71,397)


(86,547)


(17.5)

 Floorplan notes payable - manufacturer affiliates 

415,615


397,183


4.6

 Offset account related to floorplan notes payable - manufacturer affiliates 

(20,500)


(22,500)


(8.9)

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

76,080


77,609


(2.0)

 Current liabilities from interest rate risk management activities 

311


1,996


(84.4)

 Accounts payable 

428,441


412,981


3.7

 Accrued expenses 

207,082


177,070


16.9

 Total current liabilities 

2,190,666


2,198,487


(0.4)

 5.00% SENIOR NOTES (principal of $550,000 at September 30, 2018 and December 31, 2017, respectively) 

543,306


542,063


0.2

 5.25% SENIOR NOTES (principal of $300,000 at September 30, 2018 and December 31, 2017, respectively) 

296,587


296,151


0.1

 ACQUISITION LINE 

32,584


26,988


20.7

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

384,541


405,950


(5.3)

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

47,109


47,032


0.2

 DEFERRED INCOME TAXES 

137,826


124,404


10.8

 LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES 

444


8,583


(94.8)

 OTHER LIABILITIES 

99,457


97,125


2.4

 STOCKHOLDERS' EQUITY: 






 Common stock 

255


255


-

 Additional paid-in capital 

290,666


291,461


(0.3)

 Retained earnings 

1,368,948


1,246,323


9.8

 Accumulated other comprehensive loss 

(128,894)


(123,226)


4.6

 Treasury stock 

(382,629)


(290,531)


31.7

 Total stockholders' equity 

$      1,148,346


$     1,124,282


2.1

 Total liabilities and stockholders' equity 

$      4,880,866


$     4,871,065


0.2

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)












Three Months Ended


Nine Months Ended



September 30,


September 30,



2018 (%)


2017 (%)


2018 (%)


2017 (%)

NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:








Region

Geographic Market








United States

Texas

37.2


37.8


35.8


36.5


Oklahoma

6.7


5.7


6.2


6.2


California

5.8


7.0


6.2


7.6


Massachusetts

5.2


4.8


4.9


4.7


Georgia

4.7


4.4


4.5


4.6


Florida

2.9


2.4


2.6


2.5


Louisiana

2.2


1.9


2.0


2.0


New Hampshire

2.0


1.9


1.9


2.0


South Carolina

1.6


1.3


1.6


1.3


New Jersey

1.5


1.7


1.6


1.7


Kansas

1.4


1.5


1.4


1.6


Mississippi

1.2


1.2


1.2


1.3


Alabama

0.7


0.9


0.7


1.0


Maryland

0.4


0.3


0.4


0.4


New Mexico 

0.1


0.1


0.1




73.6


72.9


71.1


73.4










International

United Kingdom

21.4


22.6


23.9


21.8


Brazil

5.0


4.5


5.0


4.8



100.0


100.0


100.0


100.0










NEW VEHICLE UNIT SALES BRAND MIX:








Toyota/Lexus

27.1


26.7


25.0


25.3

Volkswagen/Audi/Porsche

11.8


13.9


13.0


13.0

BMW/MINI

11.5


11.5


12.1


12.8

Ford/Lincoln

11.0


10.6


11.1


11.5

Honda/Acura

9.5


9.0


9.3


9.2

Nissan

6.8


7.0


6.5


7.5

Chevrolet/GMC/Buick/Cadillac

5.6


6.1


5.7


6.2

Mercedes-Benz/smart/Sprinter

4.2


3.4


4.7


3.8

Chrysler/Dodge/Jeep/RAM

3.9


3.9


4.0


3.9

Hyundai/Kia

4.0


4.2


3.9


4.0

Jaguar/Land Rover

1.7


1.6


1.8


0.8

Other

2.9


2.1


2.9


2.0



100.0


100.0


100.0


100.0

 

Group 1 Automotive, Inc.

Additional Information - U.S.

(Unaudited)

(Dollars in thousands, except per unit amounts)








Three Months Ended September 30,


2018


2017


% Increase/
(Decrease)

REVENUES:






New vehicle retail sales

$ 1,196,551


$ 1,296,267


(7.7)

Used vehicle retail sales

572,011


562,031


1.8

Used vehicle wholesale sales

40,724


63,363


(35.7)

Total used

612,735


625,394


(2.0)

Parts and service

289,334


283,915


1.9

Finance, insurance and other, net

101,610


96,383


5.4

Total

$ 2,200,230


$ 2,301,959


(4.4)







GROSS MARGIN %:






New vehicle retail sales

4.8


5.1



Used vehicle retail sales

6.5


6.8



Used vehicle wholesale sales

1.0


(0.1)



Total used

6.1


6.1



Parts and service

53.9


53.8



Finance, insurance and other, net

100.0


100.0



Total

16.0


15.4









GROSS PROFIT:






New vehicle retail sales

$      57,278


$      66,622


(14.0)

Used vehicle retail sales

37,241


37,962


(1.9)

Used vehicle wholesale sales

400


(54)


840.7

Total used

37,641


37,908


(0.7)

Parts and service

155,942


152,654


2.2

Finance, insurance and other, net

101,610


96,383


5.4

Total 

$    352,471


$    353,567


(0.3)







UNITS SOLD:






Retail new vehicles sold

32,058


35,233


(9.0)

Retail used vehicles sold

28,125


26,304


6.9

Wholesale used vehicles sold

7,118


9,786


(27.3)

Total used

35,243


36,090


(2.3)







AVERAGE RETAIL SALES PRICE:






New vehicle retail

$      37,325


$      36,791


1.5

Used vehicle retail

$      20,338


$      21,367


(4.8)







GROSS PROFIT PER UNIT SOLD:






New vehicle retail sales

$        1,787


$        1,891


(5.5)

Used vehicle retail sales

1,324


1,443


(8.2)

Used vehicle wholesale sales

56


(6)


1,033.3

Total used

1,068


1,050


1.7

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

$        1,688


$        1,566


7.8







OTHER: 






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

$    101,610


$    102,933


(1.3)

Adjusted Total Revenue (1) 

$ 2,200,230


$ 2,308,509


(4.7)

Adjusted Total Gross Profit (1) 

$    352,471


$    360,117


(2.1)

Adjusted Total Gross Margin(1) 

16.0


15.6



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

$        1,688


$        1,673


0.9

SG&A expenses

$    242,210


$    261,787


(7.5)

Adjusted SG&A expenses(1)

$    249,000


$    252,120


(1.2)

SG&A as % revenues

11.0


11.4



Adjusted SG&A as % revenues (1)

11.3


11.0



SG&A as % gross profit

68.7


74.0



Adjusted SG&A as % gross profit (1)

70.6


70.0



Operating margin %

3.3


3.0



Adjusted operating margin % (1)

4.1


4.1



Pretax margin %

2.0


1.8



Adjusted pretax margin %(1)

2.7


2.9









INTEREST EXPENSE:






Floorplan interest expense

$    (12,904)


$    (12,014)


7.4

Floorplan assistance

11,736


13,295


(11.7)

Net floorplan expense

$      (1,168)


$        1,281


(191.2)

Other interest expense, net

$    (17,273)


$    (16,727)


3.3








Nine Months Ended September 30,


2018


2017


% Increase/
(Decrease)

REVENUES:






New vehicle retail sales

$ 3,433,386


$ 3,458,287


(0.7)

Used vehicle retail sales

1,727,848


1,620,171


6.6

Used vehicle wholesale sales

137,507


200,384


(31.4)

Total used

1,865,355


1,820,555


2.5

Parts and service

862,737


837,772


3.0

Finance, insurance and other, net

295,239


276,754


6.7

Total 

$ 6,456,717


$ 6,393,368


1.0







GROSS MARGIN %:






New vehicle retail sales

4.9


5.1



Used vehicle retail sales

6.3


6.9



Used vehicle wholesale sales

2.5


(0.1)



Total used

6.1


6.2



Parts and service

53.8


53.8



Finance, insurance and other, net

100.0


100.0



Total

16.1


15.9









GROSS PROFIT:






New vehicle retail sales

$    166,771


$    174,831


(4.6)

Used vehicle retail sales

109,535


112,598


(2.7)

Used vehicle wholesale sales

3,387


(170)


2,092.4

Total used

112,922


112,428


0.4

Parts and service

463,894


450,623


2.9

Finance, insurance and other, net

295,239


276,754


6.7

Total 

$ 1,038,826


$ 1,014,636


2.4







UNITS SOLD:






Retail new vehicles sold

91,119


93,533


(2.6)

Retail used vehicles sold

83,919


76,435


9.8

Wholesale used vehicles sold

23,793


29,468


(19.3)

Total used

107,712


105,903


1.7







AVERAGE RETAIL SALES PRICE:






New vehicle retail

$      37,680


$      36,974


1.9

Used vehicle retail

$      20,589


$      21,197


(2.9)







GROSS PROFIT PER UNIT SOLD:






New vehicle retail sales

$        1,830


$        1,869


(2.1)

Used vehicle retail sales

1,305


1,473


(11.4)

Used vehicle wholesale sales

142


(6)


2,466.7

Total used

1,048


1,062


(1.3)

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

$        1,687


$        1,628


3.6







OTHER: 






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

$    295,239


$    283,304


4.2

Adjusted Total Revenue (1) 

$ 6,456,717


$ 6,399,918


0.9

Adjusted Total Gross Profit (1) 

$ 1,038,826


$ 1,021,186


1.7

Adjusted Total Gross Margin (1) 

16.1


16.0


-

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

$        1,687


$        1,667


1.2

SG&A expenses

$    729,430


$    741,904


(1.7)

Adjusted SG&A expenses (1)

$    748,527


$    733,427


2.1

SG&A as % revenues

11.3


11.6



Adjusted SG&A as % revenues (1)

11.6


11.5



SG&A as % gross profit

70.2


73.1



Adjusted SG&A as % gross profit (1)

72.1


71.8



Operating margin %

3.8


3.6



Adjusted operating margin % (1)

3.9


3.9



Pretax margin %

2.4


2.2



Adjusted pretax margin % (1)

2.5


2.6









INTEREST EXPENSE:






Floorplan interest expense

$    (38,050)


$    (34,954)


8.9

Floorplan assistance

$      33,692


$      35,031


(3.8)

Net floorplan expense

$      (4,358)


$             77


(5,759.7)

Other interest expense, net

$    (51,621)


$    (49,571)


4.1


(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 in the future. As a result, finance, insurance and other revenue and gross profit are the same. 

 

Group 1 Automotive, Inc.

Additional Information - U.K.

(Unaudited)

(Dollars in thousands, except per unit amounts)










Three Months Ended September 30,


2018


2017


% Increase/
(Decrease)


Constant Currency (1)
% Increase/ (Decrease)

REVENUES:








New vehicle retail sales

$     278,046


$     334,772


(16.9)


(16.1)

Used vehicle retail sales

200,058


158,076


26.6


27.2

Used vehicle wholesale sales

41,696


38,647


7.9


8.5

Total used

241,754


196,723


22.9


23.6

Parts and service

53,817


46,783


15.0


15.6

Finance, insurance and other, net

12,319


12,448


(1.0)


(0.2)

Total

$     585,936


$     590,726


(0.8)


0.0









GROSS MARGIN %:








New vehicle retail sales

5.4


5.1





Used vehicle retail sales

5.8


4.7





Used vehicle wholesale sales

(2.1)


(0.9)





Total used

4.4


3.6





Parts and service

56.7


57.3





Finance, insurance and other, net

100.0


100.0





Total

11.7


10.8













GROSS PROFIT:








New vehicle retail sales

$       15,128


$       17,205


(12.1)


(10.8)

Used vehicle retail sales

11,625


7,471


55.6


56.6

Used vehicle wholesale sales

(880)


(347)


(153.6)


(148.1)

Total used

10,745


7,124


50.8


52.1

Parts and service

30,530


26,823


13.8


14.4

Finance, insurance and other, net

12,319


12,448


(1.0)


(0.2)

Total 

$       68,722


$       63,600


8.1


9.0









UNITS SOLD:








Retail new vehicles sold

9,333


10,909


(14.4)



Retail used vehicles sold

8,482


7,011


21.0



Wholesale used vehicles sold

5,382


4,939


9.0



Total used

13,864


11,950


16.0











AVERAGE RETAIL SALES PRICE:








New vehicle retail

$       29,792


$       30,688


(2.9)


(1.9)

Used vehicle retail

$       23,586


$       22,547


4.6


5.2









GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$         1,621


$         1,577


2.8


4.2

Used vehicle retail sales

1,371


1,066


28.6


29.4

Used vehicle wholesale sales

(164)


(70)


(134.3)


(127.7)

Total used

775


596


30.0


31.1

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

$            691


$            695


(0.6)


0.4









OTHER: 








SG&A expenses

$       59,704


$       53,395


11.8


12.4

SG&A as % revenues

10.2


9.0





SG&A as % gross profit

86.9


84.0





Operating margin %

1.0


1.3





Pretax margin %

0.5


0.9













INTEREST EXPENSE:








Floorplan interest expense

$       (1,556)


$       (1,336)


16.5


17.3

Floorplan assistance

299


265


12.8


13.6

Net floorplan expense

$       (1,257)


$       (1,071)


17.4


18.3

Other interest expense, net

$       (1,693)


$       (1,121)


51.0


52.0


















Nine Months Ended September 30,


2018


2017


% Increase/
(Decrease)


Constant Currency (1)
% Increase/ (Decrease)

REVENUES:








New vehicle retail sales

$     971,085


$     824,827


17.7


11.3

Used vehicle retail sales

600,715


401,851


49.5


41.6

Used vehicle wholesale sales

134,408


99,604


34.9


27.5

Total used

735,123


501,455


46.6


38.8

Parts and service

164,954


120,614


36.8


29.4

Finance, insurance and other, net

42,199


31,260


35.0


27.9

Total 

$  1,913,361


$  1,478,156


29.4


22.4









GROSS MARGIN %:








New vehicle retail sales

5.1


5.5





Used vehicle retail sales

5.2


4.9





Used vehicle wholesale sales

(1.6)


(0.9)





Total used

4.0


3.7





Parts and service

57.1


57.6





Finance, insurance and other, net

100.0


100.0





Total

11.2


11.2













GROSS PROFIT:








New vehicle retail sales

$       49,546


$       45,350


9.3


3.5

Used vehicle retail sales

31,288


19,579


59.8


51.4

Used vehicle wholesale sales

(2,188)


(851)


(157.1)


(149.7)

Total used

29,100


18,728


55.4


47.0

Parts and service

94,132


69,488


35.5


28.2

Finance, insurance and other, net

42,199


31,260


35.0


27.9

Total 

$     214,977


$     164,826


30.4


23.5









UNITS SOLD:








Retail new vehicles sold

30,697


27,821


10.3



Retail used vehicles sold

24,818


18,435


34.6



Wholesale used vehicles sold

16,924


13,245


27.8



Total used

41,742


31,680


31.8











AVERAGE RETAIL SALES PRICE:








New vehicle retail

$       31,635


$       29,648


6.7


0.8

Used vehicle retail

$       24,205


$       21,798


11.0


5.2









GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$         1,614


$         1,630


(1.0)


(6.2)

Used vehicle retail sales

1,261


1,062


18.7


12.5

Used vehicle wholesale sales

(129)


(64)


(101.6)


(95.4)

Total used

697


591


17.9


11.5

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

$            760


$            676


12.4


6.5









OTHER: 








SG&A expenses

$     181,558


$     137,475


32.1


24.9

Adjusted SG&A expenses(1)

$     181,558


$     137,187


32.3


25.2

SG&A as % revenues

9.5


9.3





Adjusted SG&A as % revenues (1)

9.5


9.3





SG&A as % gross profit

84.5


83.4





Adjusted SG&A as % gross profit (1)

84.5


83.2





Operating margin %

1.3


1.5





Adjusted operating margin % (1)

1.3


1.5





Pretax margin %

0.8


1.1





Adjusted pretax margin % (1)

0.8


1.1













INTEREST EXPENSE:








Floorplan interest expense

$       (4,687)


$       (3,423)


36.9


29.7

Floorplan assistance

824


714


15.4


9.3

Net floorplan expense

$       (3,863)


$       (2,709)


42.6


35.1

Other interest expense, net

$       (5,015)


$       (2,386)


110.2


99.7


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

 

Group 1 Automotive, Inc.

Additional Information - Brazil

(Unaudited)

(Dollars in thousands, except per unit amounts)










Three Months Ended September 30,


2018


2017


% Increase/
(Decrease)


Constant Currency (1)
% Increase/ (Decrease)

REVENUES:








New vehicle retail sales

$   64,901


$   79,202


(18.1)


2.3

Used vehicle retail sales

20,336


22,931


(11.3)


10.3

Used vehicle wholesale sales

4,150


2,817


47.3


84.7

Total used

24,486


25,748


(4.9)


18.4

Parts and service

11,350


12,495


(9.2)


13.1

Finance, insurance and other, net

2,155


2,162


(0.3)


24.5

Total

$ 102,892


$ 119,607


(14.0)


7.3









GROSS MARGIN %:








New vehicle retail sales

8.0


5.7





Used vehicle retail sales

6.3


7.4





Used vehicle wholesale sales

4.0


7.7





Total used

5.9


7.4





Parts and service

45.0


45.5





Finance, insurance and other, net

100.0


100.0





Total

13.5


11.9













GROSS PROFIT:








New vehicle retail sales

$     5,196


$     4,505


15.3


43.8

Used vehicle retail sales

1,289


1,690


(23.7)


(5.5)

Used vehicle wholesale sales

166


216


(23.1)


(3.6)

Total used

1,455


1,906


(23.7)


(5.2)

Parts and service

5,102


5,680


(10.2)


11.9

Finance, insurance and other, net

2,155


2,162


(0.3)


24.5

Total 

$   13,908


$   14,253


(2.4)


21.6









UNITS SOLD:








Retail new vehicles sold

2,193


2,179


0.6



Retail used vehicles sold

1,069


1,034


3.4



Wholesale used vehicles sold

402


242


66.1



Total used

1,471


1,276


15.3











AVERAGE RETAIL SALES PRICE:








New vehicle retail

$   29,595


$   36,348


(18.6)


1.6

Used vehicle retail

$   19,023


$   22,177


(14.2)


6.7









GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$     2,369


$     2,067


14.6


42.8

Used vehicle retail sales

1,206


1,634


(26.2)


(8.5)

Used vehicle wholesale sales

413


893


(53.8)


(42.0)

Total used

989


1,494


(33.8)


(17.8)

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

$        661


$        673


(1.8)


22.6









OTHER: 








SG&A expenses

$   14,857


$   13,145


13.0


42.2

Adjusted SG&A expenses(1)

$   11,737


$   13,145


(10.7)


11.4

SG&A as % revenues

14.4


11.0





Adjusted SG&A as % revenues (1)

11.4


11.0





SG&A as % gross profit

106.8


92.2





Adjusted SG&A as % gross profit (1)

84.4


92.2





Operating margin %

(1.3)


0.6





Adjusted operating margin % (1)

1.8


0.6





Pretax margin %

(1.7)


0.5





Adjusted pretax margin % (1)

1.4


0.5













INTEREST EXPENSE:








Floorplan interest expense

$      (225)


$      (141)


59.6


99.7

Floorplan assistance



-


-

Net floorplan expense

$      (225)


$      (141)


59.6


99.7

Other interest expense, net

$      (174)


$        (26)


569.2


697.6


















Nine Months Ended September 30,


2018


2017


% Increase/
(Decrease)


Constant Currency (1)
% Increase/ (Decrease)

REVENUES:








New vehicle retail sales

$ 204,187


$ 213,108


(4.2)


8.3

Used vehicle retail sales

66,265


67,892


(2.4)


9.8

Used vehicle wholesale sales

11,538


8,373


37.8


57.8

Total used

77,803


76,265


2.0


15.1

Parts and service

34,454


36,136


(4.7)


7.8

Finance, insurance and other, net

6,024


6,283


(4.1)


9.2

Total 

$ 322,468


$ 331,792


(2.8)


9.8









GROSS MARGIN %:








New vehicle retail sales

6.5


5.8





Used vehicle retail sales

6.1


7.2





Used vehicle wholesale sales

3.3


8.0





Total used

5.7


7.3





Parts and service

44.9


45.0





Finance, insurance and other, net

100.0


100.0





Total

12.2


12.2













GROSS PROFIT:








New vehicle retail sales

$   13,294


$   12,289


8.2


23.7

Used vehicle retail sales

4,041


4,864


(16.9)


(6.4)

Used vehicle wholesale sales

383


669


(42.8)


(35.5)

Total used

4,424


5,533


(20.0)


(10.0)

Parts and service

15,482


16,267


(4.8)


7.5

Finance, insurance and other, net

6,024


6,283


(4.1)


9.2

Total 

$   39,224


$   40,372


(2.8)


10.3









UNITS SOLD:








Retail new vehicles sold

6,429


6,133


4.8



Retail used vehicles sold

3,163


3,048


3.8



Wholesale used vehicles sold

1,081


858


26.0



Total used

4,244


3,906


8.7











AVERAGE RETAIL SALES PRICE:








New vehicle retail

$   31,760


$   34,748


(8.6)


3.3

Used vehicle retail

$   20,950


$   22,274


(5.9)


5.8









GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$     2,068


$     2,004


3.2


18.0

Used vehicle retail sales

1,278


1,596


(19.9)


(9.8)

Used vehicle wholesale sales

354


780


(54.6)


(48.8)

Total used

1,042


1,417


(26.5)


(17.1)

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

$        628


$        684


(8.2)


4.5









OTHER: 








SG&A expenses

$   38,222


$   37,295


2.5


17.4

Adjusted SG&A expenses(1)

$   34,552


$   37,295


(7.4)


4.9

SG&A as % revenues

11.9


11.2





Adjusted SG&A as % revenues (1)

10.7


11.2





SG&A as % gross profit

97.4


92.4





Adjusted SG&A as % gross profit (1)

88.1


92.4





Operating margin %

(0.1)


0.6





Adjusted operating margin % (1)

1.1


0.6





Pretax margin %

(0.5)


0.4





Adjusted pretax margin % (1)

0.7


0.4













INTEREST EXPENSE:








Floorplan interest expense

$      (598)


$      (282)


112.1


139.1

Floorplan assistance



-


-

Net floorplan expense

$      (598)


$      (282)


112.1


139.1

Other interest expense, net

$      (738)


$      (231)


219.5


252.3


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

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

(Dollars in thousands, except per unit amounts)










Three Months Ended September 30,


2018


2017


% Increase/
(Decrease)


Constant Currency % (1)
Increase/ (Decrease)

REVENUES:








New vehicle retail sales

$  1,539,498


$  1,710,241


(10.0)


(8.9)

Used vehicle retail sales

792,405


743,038


6.6


7.5

Used vehicle wholesale sales

86,570


104,827


(17.4)


(16.2)

Total used

878,975


847,865


3.7


4.5

Parts and service

354,501


343,193


3.3


4.2

Finance, insurance and other, net

116,084


110,993


4.6


5.2

Total

$  2,889,058


$  3,012,292


(4.1)


(3.1)









GROSS MARGIN %:








New vehicle retail sales

5.0


5.2





Used vehicle retail sales

6.3


6.3





Used vehicle wholesale sales

(0.4)


(0.2)





Total used

5.7


5.5





Parts and service

54.0


54.0





Finance, insurance and other, net

100.0


100.0





Total

15.1


14.3













GROSS PROFIT:








New vehicle retail sales

$       77,602


$       88,332


(12.1)


(10.5)

Used vehicle retail sales

50,155


47,123


6.4


7.2

Used vehicle wholesale sales

(314)


(185)


(69.7)


(36.3)

Total used

49,841


46,938


6.2


7.1

Parts and service

191,574


185,157


3.5


4.2

Finance, insurance and other, net

116,084


110,993


4.6


5.2

Total 

$     435,101


$     431,420


0.9


1.8









UNITS SOLD:








Retail new vehicles sold

43,584


48,321


(9.8)



Retail used vehicles sold

37,676


34,349


9.7



Wholesale used vehicles sold

12,902


14,967


(13.8)



Total used

50,578


49,316


2.6











AVERAGE RETAIL SALES PRICE:








New vehicle retail

$       35,323


$       35,393


(0.2)


1.0

Used vehicle retail

$       21,032


$       21,632


(2.8)


(2.0)









GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$         1,781


$         1,828


(2.6)


(0.7)

Used vehicle retail sales

1,331


1,372


(3.0)


(2.2)

Used vehicle wholesale sales

(24)


(12)


(100.0)


(58.2)

Total used

985


952


3.5


4.5

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

$         1,429


$         1,343


6.4


7.0









OTHER: 








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

$     116,084


$     117,543


(1.2)


(0.7)

Adjusted Total Revenue (1) 

$  2,889,058


$  3,018,842


(4.3)


(3.3)

Adjusted Total Gross Profit (1) 

$     435,101


$     437,970


(0.7)


0.3

Adjusted Total Gross Margin(1) 

15.1


14.5





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

$         1,429


$         1,422


0.5


1.0

SG&A expenses

$     316,771


$     328,327


(3.5)


(2.3)

Adjusted SG&A expenses (1)

$     320,441


$     318,660


0.6


1.6

SG&A as % revenues

11.0


10.9





Adjusted SG&A as % revenues (1)

11.1


10.6





SG&A as % gross profit

72.8


76.1





Adjusted SG&A as % gross profit (1)

73.6


72.8





Operating margin %

2.7


2.6





Adjusted operating margin % (1)

3.4


3.5





Pretax margin %

1.5


1.6





Adjusted pretax margin %(1)

2.2


2.4













INTEREST EXPENSE:








Floorplan interest expense

$    (14,685.0)


$     (13,491)


8.9


9.4

Floorplan assistance

$        12,034


$       13,561


(11.3)


(11.2)

Net floorplan expense

$     (2,651.0)


$              70


(3,887.1)


(4,015.3)

Other interest expense, net

$   (19,140.0)


$     (17,874)


7.1


7.4


















Nine Months Ended September 30,


2018


2017


% Increase/
(Decrease)


Constant Currency % (1)
Increase/ (Decrease)

REVENUES:








New vehicle retail sales

$  4,608,658


$  4,496,222


2.5


1.9

Used vehicle retail sales

2,394,828


2,089,914


14.6


13.5

Used vehicle wholesale sales

283,453


308,361


(8.1)


(9.9)

Total used

2,678,281


2,398,275


11.7


10.5

Parts and service

1,062,145


994,522


6.8


6.4

Finance, insurance and other, net

343,462


314,297


9.3


8.8

Total 

$  8,692,546


$  8,203,316


6.0


5.2









GROSS MARGIN %:








New vehicle retail sales

5.0


5.2





Used vehicle retail sales

6.0


6.6





Used vehicle wholesale sales

0.6


(0.1)





Total used

5.5


5.7





Parts and service

54.0


53.9





Finance, insurance and other, net

100.0


100.0





Total

14.9


14.9













GROSS PROFIT:








New vehicle retail sales

$     229,611


$     232,470


(1.2)


(1.5)

Used vehicle retail sales

144,864


137,041


5.7


4.9

Used vehicle wholesale sales

1,582


(352)


549.4


581.5

Total used

146,446


136,689


7.1


6.4

Parts and service

573,508


536,378


6.9


6.4

Finance, insurance and other, net

343,462


314,297


9.3


8.8

Total 

$  1,293,027


$  1,219,834


6.0


5.5









UNITS SOLD:








Retail new vehicles sold

128,245


127,487


0.6



Retail used vehicles sold

111,900


97,918


14.3



Wholesale used vehicles sold

41,798


43,571


(4.1)



Total used

153,698


141,489


8.6











AVERAGE RETAIL SALES PRICE:








New vehicle retail

$       35,936


$       35,268


1.9


1.3

Used vehicle retail

$       21,402


$       21,344


0.3


(0.7)









GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$         1,790


$         1,823


(1.8)


(2.1)

Used vehicle retail sales

1,295


1,400


(7.5)


(8.2)

Used vehicle wholesale sales

38


(8)


575.0


601.9

Total used

953


966


(1.3)


(2.1)

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

$         1,430


$         1,394


2.6


2.2









OTHER: 








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

$     343,462


$     320,847


7.0


6.6

Adjusted Total Revenue (1) 

$  8,692,546


$  8,209,866


5.9


5.1

Adjusted Total Gross Profit(1) 

$  1,293,027


$  1,226,384


5.4


4.9

Adjusted Total Gross Margin(1) 

14.9


14.9





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

$         1,430


$         1,423


0.5


0.1

SG&A expenses

$     949,210


$     916,674


3.5


3.1

Adjusted SG&A expenses(1)

$     964,637


$     907,909


6.2


5.7

SG&A as % revenues

10.9


11.2





Adjusted SG&A as % revenues (1)

11.1


11.1





SG&A as % gross profit

73.4


75.1





Adjusted SG&A as % gross profit (1)

74.6


74.0





Operating margin %

3.1


3.1





Adjusted operating margin % (1)

3.2


3.4





Pretax margin %

1.9


2.0





Adjusted pretax margin % (1)

2.0


2.3













INTEREST EXPENSE:








Floorplan interest expense

$     (43,335)


$     (38,659)


12.1


11.7

Floorplan assistance

$       34,516


$       35,745


(3.4)


(3.6)

Net floorplan expense

$       (8,819)


$       (2,914)


202.6


198.3

Other interest expense, net

$     (57,374)


$     (52,188)


9.9


9.6


(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.

(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 in the future. As a result, finance, insurance and other revenue and gross profit are the same. 

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)








Three Months Ended September 30,


2018


2017


% Increase/

(Decrease)

REVENUES:






New vehicle retail sales

$  1,168,356


$  1,277,933


(8.6)

Used vehicle retail sales

556,910


552,925


0.7

Used vehicle wholesale sales

39,451


61,896


(36.3)

Total used

596,361


614,821


(3.0)

Parts and service

285,334


279,191


2.2

Finance, insurance and other, net

98,868


95,016


4.1

Total 

$  2,148,919


$  2,266,961


(5.2)







GROSS MARGIN %:






New vehicle retail sales

4.8


5.1



Used vehicle retail sales

6.6


6.7



Used vehicle wholesale sales

1.0


(0.2)



Total used

6.2


6.0



Parts and service

53.9


53.8



Finance, insurance and other, net

100.0


100.0



Total

16.1


15.3









GROSS PROFIT:






New vehicle retail sales

$       55,745


$       65,518


(14.9)

Used vehicle retail sales

36,505


37,316


(2.2)

Used vehicle wholesale sales

409


(130)


414.6

Total used

36,914


37,186


(0.7)

Parts and service

153,657


150,073


2.4

Finance, insurance and other, net

98,868


95,016


4.1

Total 

$     345,184


$     347,793


(0.8)







UNITS SOLD:






Retail new vehicles sold

31,275


34,860


(10.3)

Retail used vehicles sold

27,406


25,980


5.5

Wholesale used vehicles sold

6,932


9,638


(28.1)

Total used

34,338


35,618


(3.6)







AVERAGE RETAIL SALES PRICE:






New vehicle retail

$       37,358


$       36,659


1.9

Used vehicle retail

$       20,321


$       21,283


(4.5)







GROSS PROFIT PER UNIT SOLD:






New vehicle retail sales

$         1,782


$         1,879


(5.2)

Used vehicle retail sales

1,332


1,436


(7.2)

Used vehicle wholesale sales

59


(13)


553.8

Total used

1,075


1,044


3.0

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

$         1,685


$         1,562


7.9







OTHER: 












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

$       98,868


$     101,566


(2.7)

Adjusted Total Revenue (2) 

$  2,148,919


$  2,273,511


(5.5)

Adjusted Total Gross Profit (2) 

$     345,184


$     354,343


(2.6)

Adjusted Total Gross Margin (2) 

16.1


15.6



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

$         1,685


$         1,669


1.0

SG&A expenses

$     239,268


$     257,330


(7.0)

Adjusted SG&A expenses(2)

$     243,036


$     247,663


(1.9)

SG&A as % revenues

11.1


11.4



Adjusted SG&A as % revenues (2)

11.3


10.9



SG&A as % gross profit

69.3


74.0



Adjusted SG&A as % gross profit (2)

70.4


69.9



Operating margin %

3.3


3.0



Adjusted operating margin % (2)

4.1


4.2










Nine Months Ended September 30,


2018


2017


% Increase/

(Decrease)

REVENUES:






New vehicle retail sales

$  3,357,715


$  3,435,980


(2.3)

Used vehicle retail sales

1,690,460


1,609,804


5.0

Used vehicle wholesale sales

133,389


198,628


(32.8)

Total used

1,823,849


1,808,432


0.9

Parts and service

850,231


831,905


2.2

Finance, insurance and other, net

288,317


274,338


5.1

Total 

$  6,320,112


$  6,350,655


(0.5)







GROSS MARGIN %:






New vehicle retail sales

4.8


5.0



Used vehicle retail sales

6.3


7.0



Used vehicle wholesale sales

2.5


(0.1)



Total used

6.1


6.2



Parts and service

53.7


53.8



Finance, insurance and other, net

100.0


100.0



Total

16.1


15.9









GROSS PROFIT:






New vehicle retail sales

$     162,465


$     173,509


(6.4)

Used vehicle retail sales

107,251


111,896


(4.2)

Used vehicle wholesale sales

3,395


(220)


1,643.2

Total used

110,646


111,676


(0.9)

Parts and service

456,654


447,420


2.1

Finance, insurance and other, net

288,317


274,338


5.1

Total 

$  1,018,082


$  1,006,943


1.1







UNITS SOLD:






Retail new vehicles sold

89,255


93,088


(4.1)

Retail used vehicles sold

82,235


76,078


8.1

Wholesale used vehicles sold

23,288


29,300


(20.5)

Total used

105,523


105,378


0.1







AVERAGE RETAIL SALES PRICE:






New vehicle retail

$       37,619


$       36,911


1.9

Used vehicle retail

$       20,556


$       21,160


(2.9)







GROSS PROFIT PER UNIT SOLD:






New vehicle retail sales

$         1,820


$         1,864


(2.4)

Used vehicle retail sales

1,304


1,471


(11.4)

Used vehicle wholesale sales

146


(8)


1,925.0

Total used

1,049


1,060


(1.0)

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

$         1,681


$         1,622


3.6







OTHER: 






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

$     288,317


$     280,888


2.6

Adjusted Total Revenue (2) 

$  6,320,112


$  6,357,205


(0.6)

Adjusted Total Gross Profit (2) 

1,018,082.0


1,013,493.0


0.5

Adjusted Total Gross Margin (2) 

16.1


15.9



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

1,681.0


1,660.0


1.3

SG&A expenses

735,914.0


735,942.0


(0.0)

Adjusted SG&A expenses (2)

731,870.0


727,465.0


0.6

SG&A as % revenues

11.6


11.6



Adjusted SG&A as % revenues (2)

11.6


11.4



SG&A as % gross profit

72.3


73.1



Adjusted SG&A as % gross profit (2)

71.9


71.8



Operating margin %

3.4


3.6



Adjusted operating margin % (2)

3.9


3.9




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

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

(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 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 September 30,


2018


2017


% Increase/
(Decrease)


Constant Currency (2)

% Increase/ (Decrease)

REVENUES:








New vehicle retail sales

$    236,127


$    319,782


(26.2)


(25.3)

Used vehicle retail sales

166,503


146,611


13.6


14.3

Used vehicle wholesale sales

36,763


35,808


2.7


3.4

Total used

203,266


182,419


11.4


12.2

Parts and service

46,187


43,851


5.3


5.9

Finance, insurance and other, net

10,809


11,706


(7.7)


(6.7)

Total 

$    496,389


$    557,758


(11.0)


(10.1)









GROSS MARGIN %:








New vehicle retail sales

5.6


5.2





Used vehicle retail sales

5.4


5.0





Used vehicle wholesale sales

(1.7)


(0.8)





Total used

4.1


3.9





Parts and service

55.6


57.5





Finance, insurance and other, net

100.0


100.0





Total

11.7


10.9













GROSS PROFIT:








New vehicle retail sales

$      13,224


$      16,625


(20.5)


(19.3)

Used vehicle retail sales

8,918


7,384


20.8


21.5

Used vehicle wholesale sales

(623)


(280)


(122.5)


(117.2)

Total used

8,295


7,104


16.8


17.7

Parts and service

25,701


25,208


2.0


2.6

Finance, insurance and other, net

10,809


11,706


(7.7)


(6.7)

Total 

$      58,029


$      60,643


(4.3)


(3.4)









UNITS SOLD:








Retail new vehicles sold

8,121


10,341


(21.5)



Retail used vehicles sold

6,982


6,483


7.7



Wholesale used vehicles sold

4,697


4,594


2.2



Total used

11,679


11,077


5.4











AVERAGE RETAIL SALES PRICE:








New vehicle retail

$      29,076


$      30,924


(6.0)


(4.9)

Used vehicle retail

$      23,847


$      22,615


5.4


6.1









GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$        1,628


$        1,608


1.2


2.8

Used vehicle retail sales

1,277


1,139


12.1


12.8

Used vehicle wholesale sales

(133)


(61)


(118.0)


(112.4)

Total used

710


641


10.8


11.7

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

$           716


$           696


2.9


3.9









OTHER: 








SG&A expenses

$      50,901


$      49,651


2.5


3.2

SG&A as % revenues

10.3


8.9





SG&A as % gross profit

87.7


81.9





Operating margin %

0.9


1.6














Nine Months Ended September 30,


2018


2017


% Increase/
(Decrease)


Constant Currency (2)
% Increase/ (Decrease)

REVENUES:








New vehicle retail sales

$    760,304


$    806,364


(5.7)


(10.8)

Used vehicle retail sales

462,087


388,892


18.8


12.7

Used vehicle wholesale sales

107,775


96,470


11.7


5.7

Total used

569,862


485,362


17.4


11.3

Parts and service

130,198


117,105


11.2


5.3

Finance, insurance and other, net

33,339


30,413


9.6


4.0

Total 

$ 1,493,703


$ 1,439,244


3.8


(1.7)









GROSS MARGIN %:








New vehicle retail sales

5.4


5.5





Used vehicle retail sales

5.1


5.0





Used vehicle wholesale sales

(1.5)


(0.8)





Total used

3.9


3.8





Parts and service

56.9


57.7





Finance, insurance and other, net

100.0


100.0





Total

11.4


11.2













GROSS PROFIT:








New vehicle retail sales

$      41,058


$      44,623


(8.0)


(12.7)

Used vehicle retail sales

23,563


19,404


21.4


15.1

Used vehicle wholesale sales

(1,601)


(764)


(109.6)


(102.7)

Total used

21,962


18,640


17.8


11.5

Parts and service

74,110


67,596


9.6


3.9

Finance, insurance and other, net

33,339


30,413


9.6


4.0

Total 

$    170,469


$    161,272


5.7


0.2









UNITS SOLD:








Retail new vehicles sold

24,507


27,057


(9.4)



Retail used vehicles sold

18,844


17,819


5.8



Wholesale used vehicles sold

13,517


12,840


5.3



Total used

32,361


30,659


5.6











AVERAGE RETAIL SALES PRICE:








New vehicle retail

$      31,024


$      29,802


4.1


(1.5)

Used vehicle retail

$      24,522


$      21,825


12.4


6.5









GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$        1,675


$        1,649


1.6


(3.7)

Used vehicle retail sales

1,250


1,089


14.8


8.9

Used vehicle wholesale sales

(118)


(60)


(96.7)


(92.5)

Total used

679


608


11.7


5.7

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

$           769


$           678


13.4


7.7









OTHER: 








SG&A expenses

$    144,035


$    132,667


8.6


2.8

Adjusted SG&A expenses(2)

$    144,035


$    132,379


8.8


3.0

SG&A as % revenues

9.6


9.2





Adjusted SG&A as % revenues (2)

9.6


9.2





SG&A as % gross profit

84.5


82.3





Adjusted SG&A as % gross profit (2)

84.5


82.1





Operating margin %

1.3


1.6





Adjusted operating margin % (2)

1.3


1.6






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

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

 

Group 1 Automotive, Inc.

Additional Information - Same Store Brazil (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)










Three Months Ended September 30,


2018


2017


% Increase/

(Decrease)


Constant Currency (2)
% Increase/ (Decrease)

REVENUES:








New vehicle retail sales

$   59,951


$   79,203


(24.3)


(5.5)

Used vehicle retail sales

19,679


22,930


(14.2)


6.7

Used vehicle wholesale sales

3,957


2,818


40.4


76.1

Total used

23,636


25,748


(8.2)


14.3

Parts and service

10,802


12,495


(13.5)


7.6

Finance, insurance and other, net

2,029


2,162


(6.2)


17.2

Total 

$   96,418


$ 119,608


(19.4)


0.5









GROSS MARGIN %:








New vehicle retail sales

8.2


5.7





Used vehicle retail sales

6.5


7.4





Used vehicle wholesale sales

3.9


7.7





Total used

6.1


7.4





Parts and service

44.3


45.5





Finance, insurance and other, net

100.0


100.0





Total

13.7


11.9













GROSS PROFIT:








New vehicle retail sales

$     4,930


$     4,505


9.4


36.4

Used vehicle retail sales

1,283


1,693


(24.2)


(6.1)

Used vehicle wholesale sales

155


216


(28.2)


(10.2)

Total used

1,438


1,909


(24.7)


(6.6)

Parts and service

4,787


5,681


(15.7)


4.9

Finance, insurance and other, net

2,029


2,162


(6.2)


17.2

Total 

$   13,184


$   14,257


(7.5)


15.2









UNITS SOLD:








Retail new vehicles sold

1,986


2,179


(8.9)



Retail used vehicles sold

1,027


1,034


(0.7)



Wholesale used vehicles sold

359


242


48.3



Total used

1,386


1,276


8.6











AVERAGE RETAIL SALES PRICE:








New vehicle retail

$   30,187


$   36,348


(17.0)


3.6

Used vehicle retail

$   19,162


$   22,176


(13.6)


7.4









GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$     2,482


$     2,067


20.1


49.7

Used vehicle retail sales

1,249


1,637


(23.7)


(5.5)

Used vehicle wholesale sales

432


893


(51.6)


(39.4)

Total used

1,038


1,496


(30.6)


(14.0)

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

$        673


$        673


-


25.0









OTHER: 








SG&A expenses

$   13,725


$   12,794


7.3


34.8

Adjusted SG&A expenses(2)

$   11,218


$   12,794


(12.3)


9.4

SG&A as % revenues

14.2


10.7





Adjusted SG&A as % revenues (2)

11.6


10.7





SG&A as % gross profit

104.1


89.7





Adjusted SG&A as % gross profit (2)

85.1


89.7





Operating margin %

(0.9)


0.9





Adjusted operating margin % (2)

1.7


0.9














Nine Months Ended September 30,


2018


2017


% Increase/

(Decrease)


Constant Currency (2)
% Increase/ (Decrease)

REVENUES:








New vehicle retail sales

$ 196,338


$ 210,873


(6.9)


4.9

Used vehicle retail sales

65,139


66,081


(1.4)


10.8

Used vehicle wholesale sales

11,345


8,357


35.8


55.2

Total used

76,484


74,438


2.7


15.8

Parts and service

33,593


35,480


(5.3)


6.8

Finance, insurance and other, net

5,868


6,043


(2.9)


10.4

Total 

$ 312,283


$ 326,834


(4.5)


7.7









GROSS MARGIN %:








New vehicle retail sales

6.6


5.8





Used vehicle retail sales

6.2


7.3





Used vehicle wholesale sales

3.3


8.0





Total used

5.7


7.4





Parts and service

44.6


45.6





Finance, insurance and other, net

100.0


100.0





Total

12.2


12.2













GROSS PROFIT:








New vehicle retail sales

$   12,879


$   12,193


5.6


20.6

Used vehicle retail sales

4,011


4,821


(16.8)


(6.3)

Used vehicle wholesale sales

372


669


(44.4)


(37.7)

Total used

4,383


5,490


(20.2)


(10.1)

Parts and service

14,990


16,180


(7.4)


4.4

Finance, insurance and other, net

5,868


6,043


(2.9)


10.4

Total 

$   38,120


$   39,906


(4.5)


8.3









UNITS SOLD:








Retail new vehicles sold

6,116


6,035


1.3



Retail used vehicles sold

3,094


3,003


3.0



Wholesale used vehicles sold

1,030


748


37.7



Total used

4,124


3,751


9.9











AVERAGE RETAIL SALES PRICE:








New vehicle retail

$   32,102


$   34,942


(8.1)


3.5

Used vehicle retail

$   21,053


$   22,005


(4.3)


7.6









GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$     2,106


$     2,020


4.3


19.0

Used vehicle retail sales

1,296


1,605


(19.3)


(9.1)

Used vehicle wholesale sales

361


894


(59.6)


(54.7)

Total used

1,063


1,464


(27.4)


(18.3)

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

$        637


$        669


(4.8)


8.4









OTHER: 








SG&A expenses

$   36,578


$   36,139


1.2


15.7

Adjusted SG&A expenses(2)

$   33,644


$   36,139


(6.9)


5.3

SG&A as % revenues

11.7


11.1





Adjusted SG&A as % revenues (2)

10.8


11.1





SG&A as % gross profit

96.0


90.6





Adjusted SG&A as % gross profit (2)

88.3


90.6





Operating margin %

0.1


0.8





Adjusted operating margin % (2)

1.0


0.8






(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.

Additional Information - Same Store Consolidated (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)










Three Months Ended September 30,


2018


2017


% Increase/
(Decrease)


Constant Currency (2)
% Increase/ (Decrease)

REVENUES:








New vehicle retail sales

$   1,464,434


$   1,676,918


(12.7)


(11.6)

Used vehicle retail sales

743,092


722,466


2.9


3.7

Used vehicle wholesale sales

80,171


100,522


(20.2)


(19.0)

Total used

823,263


822,988


0.0


0.9

Parts and service

342,323


335,537


2.0


2.9

Finance, insurance and other, net

111,706


108,884


2.6


3.2

Total 

$   2,741,726


$   2,944,327


(6.9)


(5.9)









GROSS MARGIN %:








New vehicle retail sales

5.0


5.2





Used vehicle retail sales

6.3


6.4





Used vehicle wholesale sales

(0.1)


(0.2)





Total used

5.7


5.6





Parts and service

53.8


53.9





Finance, insurance and other, net

100.0


100.0





Total

15.2


14.4













GROSS PROFIT:








New vehicle retail sales

$        73,899


$        86,648


(14.7)


(13.1)

Used vehicle retail sales

46,706


46,393


0.7


1.5

Used vehicle wholesale sales

(59)


(194)


69.6


97.7

Total used

46,647


46,199


1.0


1.9

Parts and service

184,145


180,962


1.8


2.5

Finance, insurance and other, net

111,706


108,884


2.6


3.2

Total 

$      416,397


$      422,693


(1.5)


(0.6)









UNITS SOLD:








Retail new vehicles sold

41,382


47,380


(12.7)



Retail used vehicles sold

35,415


33,497


5.7



Wholesale used vehicles sold

11,988


14,474


(17.2)



Total used

47,403


47,971


(1.2)











AVERAGE RETAIL SALES PRICE:








New vehicle retail

$        35,388


$        35,393


(0.0)


1.2

Used vehicle retail

$        20,982


$        21,568


(2.7)


(1.9)









GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$          1,786


$          1,829


(2.4)


(0.5)

Used vehicle retail sales

1,319


1,385


(4.8)


(4.0)

Used vehicle wholesale sales

(5)


(13)


61.5


97.3

Total used

984


963


2.2


3.1

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

$          1,455


$          1,346


8.1


8.6









OTHER: 








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

$      111,706


$      115,434


(3.2)


(2.7)

Adjusted Total Revenue (2) 

$   2,741,726


$   2,950,877


(7.1)


(6.1)

Adjusted Total Gross Profit (2) 

$      416,397


$      429,243


(3.0)


(2.1)

Adjusted Total Gross Margin (2) 

15.2


14.5





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

$          1,455


$          1,427


2.0


2.5

SG&A expenses

$      303,894


$      319,775


(5.0)


(3.8)

Adjusted SG&A expenses(2)

$      305,155


$      310,108


(1.6)


(0.6)

SG&A as % revenues

11.1


10.9





Adjusted SG&A as % revenues (2)

11.1


10.5





SG&A as % gross profit

73.0


75.7





Adjusted SG&A as % gross profit (2)

73.3


72.2





Operating margin %

2.7


2.7





Adjusted operating margin % (2)

3.5


3.5














Nine Months Ended September 30,


2018


2017


% Increase/
(Decrease)


Constant Currency (2)
% Increase/ (Decrease)

REVENUES:








New vehicle retail sales

$   4,314,357


$   4,453,217


(3.1)


(3.5)

Used vehicle retail sales

2,217,686


2,064,777


7.4


6.6

Used vehicle wholesale sales

252,509


303,455


(16.8)


(18.2)

Total used

2,470,195


2,368,232


4.3


3.5

Parts and service

1,014,022


984,490


3.0


2.7

Finance, insurance and other, net

327,524


310,794


5.4


5.1

Total 

$   8,126,098


$   8,116,733


0.1


(0.4)









GROSS MARGIN %:








New vehicle retail sales

5.0


5.2





Used vehicle retail sales

6.1


6.6





Used vehicle wholesale sales

0.9


(0.1)





Total used

5.5


5.7





Parts and service

53.8


54.0





Finance, insurance and other, net

100.0


100.0





Total

15.1


14.9













GROSS PROFIT:








New vehicle retail sales

$      216,402


$      230,325


(6.0)


(6.2)

Used vehicle retail sales

134,825


136,121


(1.0)


(1.5)

Used vehicle wholesale sales

2,166


(315)


787.6


819.3

Total used

136,991


135,806


0.9


0.4

Parts and service

545,754


531,196


2.7


2.4

Finance, insurance and other, net

327,524


310,794


5.4


5.1

Total 

$   1,226,671


$   1,208,121


1.5


1.2









UNITS SOLD:








Retail new vehicles sold

119,878


126,180


(5.0)



Retail used vehicles sold

104,173


96,900


7.5



Wholesale used vehicles sold

37,835


42,888


(11.8)



Total used

142,008


139,788


1.6











AVERAGE RETAIL SALES PRICE:








New vehicle retail

$        35,990


$        35,293


2.0


1.6

Used vehicle retail

$        21,288


$        21,308


(0.1)


(0.8)









GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$          1,805


$          1,825


(1.1)


(1.2)

Used vehicle retail sales

1,294


1,405


(7.9)


(8.4)

Used vehicle wholesale sales

57


(7)


914.3


915.3

Total used

965


972


(0.7)


(1.2)

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

$          1,462


$          1,393


5.0


4.6









OTHER: 








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

$      327,524


$      317,344


3.2


2.9

Adjusted Total Revenue (2) 

$   8,126,098


$   8,123,283


0.0


(0.4)

Adjusted Total Gross Profit (2) 

$   1,226,671


$   1,214,671


1.0


0.7

Adjusted Total Gross Margin (2) 

15.1


15.0





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

$          1,462


$          1,423


2.7


2.5

SG&A expenses

$      916,527


$      904,748


1.3


1.0

Adjusted SG&A expenses(2)

$      909,549


$      895,983


1.5


1.2

SG&A as % revenues

11.3


11.1





Adjusted SG&A as % revenues (2)

11.2


11.0





SG&A as % gross profit

74.7


74.9





Adjusted SG&A as % gross profit (2)

74.1


73.8





Operating margin %

2.9


3.1





Adjusted operating margin % (2)

3.3


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.

(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 in the future. As a result, finance, insurance and other revenue and gross profit are the same. 

 

Group 1 Automotive, Inc.

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

(Unaudited)

 (Dollars in thousands, except per share amounts)



Three Months Ended September 30,



2018


2017


% Increase/
(Decrease)

 FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION: 







As reported

$    101,610


$      96,383


5.4


  Pre-tax adjustments:







 Catastrophic events 

-


6,550




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

$    101,610


$    102,933


(1.3)








 TOTAL REVENUES RECONCILIATION: 







As reported

$ 2,200,230


$ 2,301,959


(4.4)


  Pre-tax adjustments:







 Catastrophic events 

-


6,550




Adjusted Total Revenues (1)

$ 2,200,230


$ 2,308,509


(4.7)








 TOTAL GROSS PROFIT RECONCILIATION: 







As reported

$    352,471


$    353,567


(0.3)


  Pre-tax adjustments:







 Catastrophic events 

-


6,550




Adjusted Total Gross Profit (1)

$    352,471


$    360,117


(2.1)








SG&A RECONCILIATION:







As reported

$    242,210


$    261,787


(7.5)


  Pre-tax adjustments:







 Catastrophic events 

-


(8,149)




 Gain (loss) on real estate and dealership transactions 

5,394


(798)




 Legal settlements 

1,396


(720)




Adjusted SG&A (1)

$    249,000


$    252,120


(1.2)








TOTAL GROSS MARGIN %:







Unadjusted

16.0


15.4




Adjusted (1)

16.0


15.6










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







Unadjusted

$        1,688


$        1,566


7.8


Adjusted (1)

$        1,688


$        1,673


0.9








SG&A AS % REVENUES:







Unadjusted

11.0


11.4




Adjusted (1)

11.3


11.0










SG&A AS % GROSS PROFIT:







Unadjusted

68.7


74.0




Adjusted (1)

70.6


70.0










OPERATING MARGIN %:







Unadjusted

3.3


3.0




Adjusted (1), (2)

4.1


4.1










PRETAX MARGIN %:







Unadjusted

2.0


1.8




Adjusted (1), (2)

2.7


2.9










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







As reported

$      98,868


$      95,016


4.1


  Pre-tax adjustments:







 Catastrophic events 

-


6,550




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

$      98,868


$    101,566


(2.7)








 SAME STORE TOTAL REVENUES RECONCILIATION: 







As reported

$ 2,148,919


$ 2,266,961


(5.2)


  Pre-tax adjustments:







 Catastrophic events 

-


6,550




Adjusted Total Revenues (1)

$ 2,148,919


$ 2,273,511


(5.5)








 SAME STORE TOTAL GROSS PROFIT RECONCILIATION: 







As reported

$    345,184


$    347,793


(0.8)


  Pre-tax adjustments:







 Catastrophic events 

-


6,550




Adjusted Total Gross Profit (1)

$    345,184


$    354,343


(2.6)








SAME STORE SG&A RECONCILIATION:














As reported

$    239,268


$    257,330


(7.0)


  Pre-tax adjustments:







 Catastrophic events 

-


(8,149)




 Gain (loss) on real estate and dealership transactions 

2,372


(798)




 Legal settlements 

1,396


(720)




Adjusted Same Store SG&A (1)

$    243,036


$    247,663


(1.9)








SAME STORE TOTAL GROSS MARGIN %:







Unadjusted

16.1


15.3




Adjusted (1)

16.1


15.6










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







Unadjusted

$        1,685


$        1,562


7.9


Adjusted (1)

$        1,685


$        1,669


1.0








SAME STORE SG&A AS % REVENUES:







Unadjusted

11.1


11.4




Adjusted (1)

11.3


10.9










SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

69.3


74.0




Adjusted (1)

70.4


69.9










SAME STORE OPERATING MARGIN %:







Unadjusted

3.3


3.0




Adjusted (1), (3)

4.1


4.2












Nine Months Ended September 30,



2018


2017


% Increase/

(Decrease)

 FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION: 







As reported

$    295,239


$    276,754


6.7


  Pre-tax adjustments:







 Catastrophic events 

-


6,550




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

$    295,239


$    283,304


4.2








TOTAL REVENUES RECONCILIATION:







As reported

$ 6,456,717


$ 6,393,368


1.0


  Pre-tax adjustments:







 Catastrophic events 

-


6,550




Adjusted Total Revenues (1)

$ 6,456,717


$ 6,399,918


0.9








TOTAL GROSS PROFIT RECONCILIATION:







As reported

$ 1,038,826


$ 1,014,636


2.4


  Pre-tax adjustments:







 Catastrophic events 

-


6,550




Adjusted Total Gross Profit (1)

$ 1,038,826


$ 1,021,186


1.7








SG&A RECONCILIATION:







As reported

$    729,430


$    741,904


(1.7)


  Pre-tax adjustments:







 Catastrophic events 

(5,812)


(8,792)




 Gain (loss) on real estate and dealership transactions 

25,513


(798)




 Legal settlements 

(604)


1,113




Adjusted SG&A (1)

$    748,527


$    733,427


2.1








 TOTAL GROSS MARGIN %: 







Unadjusted

16.1


15.9




Adjusted (1)

16.1


16.0










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







Unadjusted

$        1,687


$        1,628


3.6


Adjusted (1)

$        1,687


$        1,667


1.2








SG&A AS % REVENUES:







Unadjusted

11.3


11.6




Adjusted (1)

11.6


11.5










SG&A AS % OF GROSS PROFIT:







Unadjusted

70.2


73.1




Adjusted (1)

72.1


71.8










OPERATING MARGIN %:







 Unadjusted 

3.8


3.6




Adjusted (1), (2)

3.9


3.9










PRETAX MARGIN %:







Unadjusted

2.4


2.2




Adjusted (1), (2)

2.5


2.6










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







As reported

$    288,317


$    274,338


5.1


  Pre-tax adjustments:







 Catastrophic events 

-


6,550




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

$    288,317


$    280,888


2.6








 SAME STORE TOTAL REVENUES RECONCILIATION: 







As reported

$ 6,320,112


$ 6,350,655


(0.5)


  Pre-tax adjustments:







 Catastrophic events 

-


6,550




Adjusted Total Revenues (1)

$ 6,320,112


$ 6,357,205


(0.6)








 SAME STORE TOTAL GROSS PROFIT RECONCILIATION: 







As reported

$ 1,018,082


$ 1,006,943


1.1


  Pre-tax adjustments:







 Catastrophic events 

-


6,550




Adjusted Total Gross Profit (1)

$ 1,018,082


$ 1,013,493


0.5








SAME STORE SG&A RECONCILIATION:







As reported

$    735,914


$    735,942


(0.0)


  Pre-tax adjustments:







 Catastrophic events 

(5,812)


(8,792)




 Gain (loss) on real estate and dealership transactions 

2,372


(798)




 Legal settlements 

(604)


1,113




Adjusted Same Store SG&A (1)

$    731,870


$    727,465


0.6








 SAME STORE TOTAL GROSS MARGIN %: 







Unadjusted

16.1


15.9




Adjusted (1)

16.1


15.9










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







Unadjusted

$        1,681


$        1,622


3.6


Adjusted (1)

$        1,681


$        1,660


1.3








SAME STORE SG&A AS % REVENUES:







Unadjusted

11.6


11.6




Adjusted (1)

11.6


11.4










SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

72.3


73.1




Adjusted (1)

71.9


71.8










SAME STORE OPERATING MARGIN %:







Unadjusted

3.4


3.6




Adjusted (1), (3)

3.9


3.9




(1)

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



(2)

Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $23,159 and $27,427 for the three and nine months ended September 30, 2018, respectively, and $9,526 for the three and nine months ended September 30, 2017.



(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $22,161 and $26,183 for the three and nine months ended September 30, 2018, respectively, and $9,526 for the three and nine months ended September 30, 2017.

 

Group 1 Automotive, Inc.

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

(Unaudited)

 (Dollars in thousands, except per share amounts)










 Nine Months Ended September 30



2018


2017


% Increase/

(Decrease)

SG&A RECONCILIATION:







As reported

$ 181,558


$ 137,475


32.1


  Pre-tax adjustments:







 Acquisition costs 

-


(288)




Adjusted SG&A (1)

$ 181,558


$ 137,187


32.3








SG&A AS % REVENUES:







Unadjusted

9.5


9.3




Adjusted (1)

9.5


9.3










SG&A AS % OF GROSS PROFIT:







Unadjusted

84.5


83.4




Adjusted (1)

84.5


83.2










OPERATING MARGIN %:







Unadjusted

1.3


1.5




Adjusted (1)

1.3


1.5










PRETAX MARGIN %:







Unadjusted

0.8


1.1




Adjusted (1)

0.8


1.1










SAME STORE SG&A RECONCILIATION:







As reported

$ 144,035


$ 132,667


8.6


  Pre-tax adjustments:







 Acquisition costs 

-


(288)




Adjusted Same Store SG&A (1)

$ 144,035


$ 132,379


8.8








SAME STORE SG&A AS % REVENUES:







Unadjusted

9.6


9.2




Adjusted (1)

9.6


9.2










SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

84.5


82.3




Adjusted (1)

84.5


82.1










SAME STORE OPERATING MARGIN %:







Unadjusted

1.3


1.6




Adjusted (1)

1.3


1.6




(1)

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

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Brazil

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended September 30,



2018


2017


% Increase/
(Decrease)

SG&A RECONCILIATION:







As reported

$  14,857


$ 13,145


13.0


  Pre-tax adjustments:







 Legal settlements 

(3,120)


-




Adjusted SG&A (1)

$  11,737


$ 13,145


(10.7)








SG&A AS % REVENUES:







Unadjusted

14.4


11.0




Adjusted (1)

11.4


11.0










SG&A AS % GROSS PROFIT:







Unadjusted

106.8


92.2




Adjusted (1)

84.4


92.2










OPERATING MARGIN %:







Unadjusted

(1.3)


0.6




Adjusted (1)

1.8


0.6










PRETAX MARGIN %:







Unadjusted

(1.7)


0.5




Adjusted (1)

1.4


0.5










SAME STORE SG&A RECONCILIATION:







As reported

$  13,725


$ 12,794


7.3


  Pre-tax adjustments:







 Legal settlements 

(2,507)


-




Adjusted Same Store SG&A (1)

$  11,218


$ 12,794


(12.3)








SAME STORE SG&A AS % REVENUES:







Unadjusted

14.2


10.7




Adjusted (1)

11.6


10.7










SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

104.1


89.7




Adjusted (1)

85.1


89.7










SAME STORE OPERATING MARGIN %:







Unadjusted

(0.9)


0.9




Adjusted (1)

1.7


0.9












 Nine Months Ended September 30



2018


2017


% Increase/
(Decrease)

SG&A RECONCILIATION:







As reported

$  38,222


$ 37,295


2.5


  Pre-tax adjustments:







 Legal settlements 

(3,670)


-




Adjusted SG&A (1)

$  34,552


$ 37,295


(7.4)








SG&A AS % REVENUES:







Unadjusted

11.9


11.2




Adjusted (1)

10.7


11.2










SG&A AS % OF GROSS PROFIT:







Unadjusted

97.4


92.4




Adjusted (1)

88.1


92.4










OPERATING MARGIN %:







Unadjusted

(0.1)


0.6




Adjusted (1)

1.1


0.6



PRETAX MARGIN %:







Unadjusted

(0.5)


0.4




Adjusted (1)

0.7


0.4










SAME STORE SG&A RECONCILIATION:







As reported

$  36,578


$ 36,139


1.2


  Pre-tax adjustments:







 Legal settlements 

(2,934)


-




Adjusted Same Store SG&A (1)

$  33,644


$ 36,139


(6.9)








SAME STORE SG&A AS % REVENUES:







Unadjusted

11.7


11.1




Adjusted (1)

10.8


11.1










SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

96.0


90.6




Adjusted (1)

88.3


90.6










SAME STORE OPERATING MARGIN %:







Unadjusted

0.1


0.8




Adjusted (1)

1.0


0.8




(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.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Consolidated

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended September 30,



2018


2017


% Increase/

(Decrease)








NET INCOME RECONCILIATION:







As reported







  Pretax Net Income

$      44,365


$      47,143




   Income Tax Provision 

(9,587)


(17,262)




     Net Income  

$      34,778


$      29,881


16.4


       Effective Tax Rate 

21.6%


36.6%




 Adjustments:  







 Catastrophic events  







 Pre-tax 

-


14,699




 Tax impact 

-


(5,677)




 (Gain) loss on real estate and dealership transactions 







 Pre-tax 

(5,394)


798




 Tax impact 

1,249


(301)




 Legal settlements 







 Pre-tax 

1,724


720




 Tax impact 

(118)


(270)




 Non-cash asset impairment 







 Pre-tax  

23,159


9,526




 Tax impact 

(5,504)


(3,579)




 Allowance for uncertain tax positions 







 Pre-tax  

-


-




 Tax impact 

-


834




 Tax rate changes  







 Pre-tax  

-


-




 Tax impact 

(705)


-




 Adjusted 







   Pretax Net Income 

$      63,854


$      72,886




   Income Tax Provision 

(14,665)


(26,255)




   Adjusted net income (1)

$      49,189


$      46,631


5.5


       Effective Tax Rate 

23.0%


36.02%










 ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION:







Adjusted net income (1)

$      49,189


$      46,631


5.5


Less: Adjusted earnings allocated to participating securities

1,676


1,603


4.6


Adjusted net income available to diluted common shares (1)

$      47,513


$      45,028


5.5








 DILUTED (LOSS) INCOME PER COMMON SHARE RECONCILIATION: 







As reported

$          1.74


$          1.43


21.7


  After-tax adjustments:







 Catastrophic events  

-


0.44




 (Gain) loss on real estate and dealership transactions 

(0.21)


0.02




 Legal settlements  

0.08


0.02




 Non-cash asset impairment 

0.89


0.28




 Allowance for uncertain tax positions 

-


0.04




 Tax rate changes  

(0.03)


-




Adjusted diluted income per share (1)

$          2.47


$          2.23


10.8








 FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION: 







As reported

$    116,084


$    110,993


4.6


  Pre-tax adjustments:







Catastrophic events

-


6,550




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

$    116,084


$    117,543


(1.2)








 TOTAL REVENUES RECONCILIATION: 







As reported

$ 2,889,058


$ 3,012,292


(4.1)


  Pre-tax adjustments:







Catastrophic events

-


6,550




Adjusted Total Revenues (1)

$ 2,889,058


$ 3,018,842


(4.3)








 TOTAL GROSS PROFIT RECONCILIATION: 







As reported

$    435,101


$    431,420


0.9


  Pre-tax adjustments:







 Catastrophic events 

-


6,550




Adjusted Total Gross Profit (1)

$    435,101


$    437,970


(0.7)








SG&A RECONCILIATION:







As reported

$    316,771


$    328,327


(3.5)


  Pre-tax adjustments:







 Catastrophic events 

-


(8,149)




 Gain (loss) on real estate and dealership transactions 

5,394


(798)




 Legal settlements 

(1,724)


(720)




Adjusted SG&A (1)

$    320,441


$    318,660


0.6








 TOTAL GROSS MARGIN %: 







Unadjusted

15.1


14.3




Adjusted (1)

15.1


14.5










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







Unadjusted

$        1,429


$        1,343


6.4


Adjusted (1)

$        1,429


$        1,422


0.5








SG&A AS % REVENUES:







Unadjusted

11.0


10.9




Adjusted (1)

11.1


10.6










SG&A AS % GROSS PROFIT:







Unadjusted

72.8


76.1




Adjusted (1)

73.6


72.8










OPERATING MARGIN %:







Unadjusted

2.7


2.7




Adjusted (1), (2)

3.4


3.5










PRETAX MARGIN %:







Unadjusted

1.5


1.6




Adjusted (1), (2)

2.2


2.4










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






As reported

$    111,706


$    108,884


2.6


  Pre-tax adjustments:







Catastrophic events

-


6,550




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

$    111,706


$    115,434


(3.2)








 SAME STORE TOTAL REVENUES RECONCILIATION: 







As reported

$ 2,741,726


$ 2,944,327


(6.9)


  Pre-tax adjustments:







Catastrophic events

-


6,550




Adjusted Total Revenues (1)

$ 2,741,726


$ 2,950,877


(7.1)








 SAME STORE TOTAL GROSS PROFIT RECONCILIATION: 







As reported

$    416,397


$    422,693


(1.5)


  Pre-tax adjustments:

-


-




Catastrophic events

-


6,550




Adjusted Total Gross Profit (1)

$    416,397


$    429,243


(3.0)








SAME STORE SG&A RECONCILIATION:







As reported

$    303,894


$    319,775


(5.0)


  Pre-tax adjustments:







 Catastrophic events 

-


(8,149)




 Gain (loss) on real estate and dealership transactions 

2,372


(798)




 Legal settlements 

(1,111)


(720)




Adjusted Same Store SG&A (1)

$    305,155


$    310,108


(1.6)








SAME STORE TOTAL GROSS MARGIN %:







Unadjusted

15.2


14.4




Adjusted (1)

15.2


14.5










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







Unadjusted

$        1,455


$        1,346


8.1


Adjusted (1)

$        1,455


$        1,427


2.0








SAME STORE SG&A AS % REVENUES:







Unadjusted

11.1


10.9




Adjusted (1)

11.1


10.5










SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

73.0


75.7




Adjusted (1)

73.3


72.2










SAME STORE OPERATING MARGIN %:







Unadjusted

2.7


2.7




Adjusted (1), (3)

3.5


3.5












 Nine Months Ended September 30, 



2018


2017


% Increase/
(Decrease)

NET INCOME RECONCILIATION:







As reported







  Pretax Net Income

$    165,720


$    160,029




   Income Tax Provision 

(38,666)


(57,076)




     Net Income  

$    127,054


$    102,953


23.4


       Effective Tax Rate 

23.3%


35.7%




 Adjustments: 







 Catastrophic events  







 Pre-tax 

5,812


15,341




 Tax impact 

(1,444)


(5,926)




 (Gain) loss on real estate and dealership transactions 







 Pre-tax 

(25,513)


798




 Tax impact 

6,166


(301)




 Acquisition costs  







 Pre-tax 

-


288




 Tax impact 

-


-




 Legal settlements 







 Pre-tax 

4,274


(1,113)




 Tax impact 

(687)


426




 Non-cash asset impairment 







 Pre-tax  

27,427


9,526




 Tax impact 

(6,593)


(3,579)




 Allowance for uncertain tax positions 







 Pre-tax  

-


-




 Tax impact 

-


834




 Tax rate changes  







 Pre-tax 

-


-




 Tax impact 

(705)


-




 Adjusted 







   Pretax Net Income 

$    177,720


$    184,869




   Income Tax Provision 

(41,929)


(65,622)




  Adjusted net income (1)

$    135,791


$    119,247


13.9


      Effective Tax Rate

23.6%


35.5%










 ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION: 







Adjusted net income (1)

$    135,791


$    119,247


13.9


 Less: Adjusted earnings allocated to participating securities 

4,605


4,248


8.4


 Adjusted net income available to diluted common shares (1) 

$    131,186


$    114,999


14.1








 DILUTED INCOME PER COMMON SHARE RECONCILIATION: 







 As reported 

$          6.18


$          4.85


27.4


   After-tax adjustments: 

-


-




 Catastrophic events  

0.21


0.44




 (Gain) loss on real estate and dealership transactions 

(0.94)


0.03




 Acquisition costs including related tax impact  

-


0.02




 Legal settlements  

0.18


(0.03)




 Non-cash asset impairment 

1.00


0.27




 Allowance for uncertain tax positions 

-


0.04




 Tax rate changes  

(0.03)


-




Adjusted diluted income per share (1)

$          6.60


$          5.62


17.4








 FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION: 







As reported

$    343,462


$    314,297


9.3


  Pre-tax adjustments:







Catastrophic events

-


6,550




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

$    343,462


$    320,847


7.0








 TOTAL REVENUES RECONCILIATION: 







As reported

$ 8,692,546


$ 8,203,316


6.0


  Pre-tax adjustments:







Catastrophic events

-


6,550




Adjusted Total Revenues (1)

$ 8,692,546


$ 8,209,866


5.9








 TOTAL GROSS PROFIT RECONCILIATION: 







As reported

$ 1,293,027


$ 1,219,834


6.0


  Pre-tax adjustments:







 Catastrophic events 

-


6,550




Adjusted Total Gross Profit (1)

$ 1,293,027


$ 1,226,384


5.4








SG&A RECONCILIATION:







As reported

$    949,210


$    916,674


3.5


  Pre-tax adjustments:







 Catastrophic events 

(5,812)


(8,792)




 Gain (loss) on real estate and dealership transactions 

25,513


(798)




 Acquisition costs 

-


(288)




 Legal settlements 

(4,274)


1,113




Adjusted SG&A (1)

$    964,637


$    907,909


6.2








 TOTAL GROSS MARGIN %: 







Unadjusted

14.9


14.9




Adjusted (1)

14.9


14.9










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







Unadjusted

$        1,430


$        1,394


2.6


Adjusted (1)

$        1,430


$        1,423


0.5








SG&A AS % REVENUES:







Unadjusted

10.9


11.2




Adjusted (1)

11.1


11.1










SG&A AS % OF GROSS PROFIT:







Unadjusted

73.4


75.1




Adjusted (1)

74.6


74.0










OPERATING MARGIN %:







Unadjusted

3.1


3.1




Adjusted (1), (2)

3.2


3.4










PRETAX MARGIN %:







Unadjusted

1.9


2.0




Adjusted (1), (2)

2.0


2.3










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






As reported

$    327,524


$    310,794


5.4


  Pre-tax adjustments:







Catastrophic events

-


6,550




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

$    327,524


$    317,344


3.2

 SAME STORE TOTAL REVENUES RECONCILIATION: 







As reported

$ 8,126,098


$ 8,116,733


0.1


  Pre-tax adjustments:







Catastrophic events

-


6,550




Adjusted Total Revenues(1)

$ 8,126,098


$ 8,123,283


0.0








 SAME STORE TOTAL GROSS PROFIT RECONCILIATION: 







As reported

$ 1,226,671


$ 1,208,121


1.5


Pre-tax adjustments:







Catastrophic events

-


6,550




Adjusted Total Gross Profit(1)

$ 1,226,671


$ 1,214,671


1.0








 SAME STORE SG&A RECONCILIATION: 







As reported

$    916,527


$    904,748


1.3


  Pre-tax adjustments:







 Catastrophic events 

(5,812)


(8,792)




 Gain (loss) on real estate and dealership transactions 

2,372


(798)




 Acquisition costs 

-


(288)




 Legal settlements 

(3,538)


1,113




Adjusted Same Store SG&A (1)

$    909,549


$    895,983


1.5








 SAME STORE TOTAL GROSS MARGIN %: 







 Unadjusted 

15.1


14.9




Adjusted (1)

15.1


15.0



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







Unadjusted

1,462


1,393


5.0


Adjusted (1)

1,462


1,423


2.7








 SAME STORE SG&A AS % REVENUES: 







 Unadjusted 

11.3


11.1




Adjusted (1)

11.2


11.0



 SAME STORE SG&A AS % GROSS PROFIT: 

-


-




Unadjusted

74.7


74.9




Adjusted (1)

74.1


73.8



 SAME STORE OPERATING MARGIN %: 







Unadjusted

2.9


3.1




Adjusted (1), (3)

3.3


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, as well as non-cash asset impairment charges of $23,159 and $27,427 for the three and nine months ended September 30, 2018, respectively, and $9,526 for the three and nine months ended September 30, 2017.

(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $22,161 and $26,183 for the three and nine months ended September 30, 2018, respectively, and $9,526 for the three and nine months ended September 30, 2017.

 

Cision View original content:http://www.prnewswire.com/news-releases/group-1-automotive-announces-third-quarter-2018-financial-results-300737642.html

SOURCE Group 1 Automotive, Inc.