GPI
$73.50
Group 1 Automotive
$.72
.99%
Earnings Details
2nd Quarter June 2018
Thursday, July 26, 2018 7:07:00 AM
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Summary

Group 1 Automotive (GPI) Recent Earnings

Group 1 Automotive (GPI) reported 2nd Quarter June 2018 earnings of $2.45 per share on revenue of $2.9 billion. The consensus earnings estimate was $2.18 per share. Revenue grew 10.2% on a year-over-year basis.

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
$2.45
Earnings Whisper
-
Consensus Estimate
$2.18
Reported Revenue
$2.94 Bil
Revenue Estimate
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Group 1 Automotive Announces Second Quarter 2018 Financial Results

HOUSTON, July 26, 2018 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), ("Group 1" or the "Company"), an international, Fortune 500 automotive retailer, today reported 2018 second quarter net income of $56.5 million, diluted earnings per common share of $2.72, adjusted net income (a non-GAAP measure) of $50.8 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $2.45.

Second quarter 2018 adjusted net income and diluted earnings per share exclude approximately $5.7 million net after-tax adjustments, or $0.27 per common share. These adjustments consisted of a net gain on real estate and dealership transactions, which was approximately $15.2 million, or $0.73 per common share, partially offset by the impact of catastrophic events of $4.4 million, or $0.21 per common share; non-cash asset impairments of $3.2 million, or $0.15 per common share; and legal settlements of approximately $2.0 million, or $0.10 per common share.

"We delivered a solid quarter, reflecting a relatively strong U.S. vehicle market in June, favorable overall performance in the U.K., a corporate-wide focus on our used vehicle business, and a major cost reduction initiative in both the U.S. and the U.K. early this year that began to pay dividends this quarter," said Earl J. Hesterberg, Group 1's president and chief executive officer. "These results demonstrate our ability to grow earnings in a flat retail sales environment. In addition, during the quarter, the Company has launched a renewed focus on capital deployment, with an emphasis on actions, such as disposal of underperforming assets, more stringent control of capital expenditures, and enhanced share repurchases, targeted at delivering improved shareholder value. Actions taken this quarter include the disposal of a large underperforming dealership and a stepped-up pace of share repurchases."

Consolidated Results for Second 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 grew 10.2 percent (9.2 percent) to $2.9 billion.
  • Total gross profit grew 8.2 percent (7.5 percent), to $438.2 million.
  • New vehicle revenues increased 7.4 percent (6.6 percent) on 6.3 percent higher unit sales. New vehicle gross profit improved 2.2 percent (1.8 percent), to $76.6 million.
  • Retail used vehicle revenues increased 19.8 percent (18.4 percent) on 18.8 percent higher unit sales. Retail used vehicle gross profit increased 14.0 percent (12.7 percent), to $51.2 million. Total used vehicle gross profit was up 15.3 percent (14.1 percent), to $51.5 million. In the U.S., the Val-u-Line initiative the Company launched last quarter has continued to build momentum, with Same Store used retail unit sales increasing 11 percent, and Val-u-Line units growing to 10 percent of the mix.
  • Parts and service gross profit increased 9.1 percent (8.3 percent) on revenue growth of 8.0 percent (7.4 percent). Same Store parts and service gross profit increased 3.2 percent (2.7 percent) on Same Store parts and service revenue growth of 2.4 percent (2.0 percent).
  • Finance and Insurance (F&I) gross profit per retail unit (PRU) decreased 3.4 percent (decreased 3.9 percent), to $1,412 and total F&I gross profit increased $8.6 million, or 8.1 percent (7.5 percent).
  • Selling, General and Administrative (SG&A) expenses as a percent of gross profit improved 340 basis points, to 70.3 percent. Adjusted Same Store SG&A as a percent of gross profit improved 110 basis points, to 72.3 percent, reflecting strong improvements in all three of our markets.
  • Provision for income taxes declined 17.0 percent, to $18.7 million, or to approximately 24.9 percent of income before income taxes, primarily reflecting the impact of the U.S. Tax Reform Bill that reduced the U.S. corporate income tax rate.

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

  • United States:

    The Company's U.S. operations accounted for 73.7 percent of total revenues and 80.0 percent of total gross profit. Total U.S. revenues were $2.2 billion, an increase of 2.1 percent, driven by increases in used retail (up 10.4 percent), F&I revenue (up 3.1 percent), and parts and service (up 2.2 percent). F&I gross profit PRU decreased $33, or 2.0 percent per unit, to $1,655; and total gross profit grew 3.0 percent, to $350.7 million.

    "We were pleased with our used car performance and cost control in the U.S. in the second quarter. Same Store used vehicle retail unit sales were up 11 percent and total used vehicle gross profit increased six percent. Total Same Store gross profit increased one percent, which when coupled with strong cost control, evidenced by adjusted SG&A leverage of 110 basis points, drove improved bottom-line results. Same Store adjusted operating income increased five percent and adjusted operating margin improved 20 basis points to 4.2 percent," said Daryl Kenningham, Group 1's president of U.S. operations.

    New vehicle retail gross profit PRU was roughly flat with a slight increase of $4, to $1,855. Total used vehicle gross profit PRU increased $69, to $1,128, reflecting the impact of the used vehicle initiatives we launched last quarter, which drove a shift of over 2,000 units from low-margin wholesale to higher margin retail sales.

    SG&A expenses as a percent of gross profit improved 480 basis points, to 66.8 percent; and operating margin increased 60 basis points, to 4.6 percent. Adjusted SG&A expenses as a percent of gross profit improved 110 basis points, to 70.3 percent.

 

  • United Kingdom

    The Company's U.K. operations accounted for 22.7 percent of total revenues and 17.1 percent of total gross profit. Total U.K. revenues increased 52.6 percent (43.6 percent), to $666.9 million, driven by double-digit revenue growth across each business segment. Same Store U.K. revenues grew 13.6 percent (6.9 percent), to $493.1 million, and new vehicle units sold increased 7.2 percent, despite the industry growing only 2.4 percent. Total gross profit increased 46.9 percent (38.3 percent), to $74.8 million, with Same Store gross profit increasing 12.6 percent (6.1 percent), to $57.1 million. This growth was driven by strong improvements of 16.8 percent (10 percent) in Same Store parts and service gross profit, as well as double-digit growth in F&I and used retail gross.

    SG&A expenses as a percent of gross profit improved 20 basis points, to 83.2 percent; and operating margin decreased 10 basis points, to 1.4 percent. Adjusted Same Store SG&A expenses as a percent of gross profit improved 140 basis points, to 81.1 percent; and Same Store operating margin increased 10 basis points, to 1.7 percent.

 

  • Brazil:

    The Company's Brazilian operations were approximately breakeven during the second quarter and accounted for 3.6 percent of total revenues and 2.9 percent of total gross profit as a trucking strike in May negatively impacted results. The Company's Same Store new vehicle revenue grew 1.7 percent on a constant currency basis, with units down 5.4 percent. On a Same Store constant currency basis, total revenues grew 5.0 percent, driven by revenue growth of the aforementioned 1.7 percent in new vehicles, 16.5 percent in total used vehicles, 2.7 percent in parts & service, and 5.1 percent in F&I.

    SG&A expenses as a percent of gross profit increased 10 basis points, to 91.1 percent. Adjusted Same Store SG&A expenses as a percent of gross profit decreased 280 basis points, to 86.6 percent.

Share Repurchase Authorization

During the second quarter of 2018, the Company repurchased 610,752 shares at an average price per common share of $68.90, for a total of $42.1 million. In July 2018, the Company repurchased an additional 367,773 shares at an average price per common share of $67.98, for a total of $25.0 million. Year-to-date through July 25, 2018, the Company has repurchased 1,114,130 shares at an average price per common share of $68.46, for a total of $76.3 million. These repurchases represent approximately 5.5 percent of the Company's share float at the beginning of the year. As of July 25, 2018, the Company has $73.4 million remaining on its Board authorized common stock share repurchase program.

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

Corporate Development

As previously announced, the Company acquired Toyota Alpha Trevo Automóveis Ltda in western São Paulo, Brazil in April 2018, which will operate as T-Drive Toyota Alphaville, and is expected to generate approximately $45 million in annualized revenues. This acquisition provides the opportunity to both increase scale in a growing market and further expand the Company's Toyota presence with additional open points to be announced at a future date. Additionally, the Company is pleased to announce the relocation of Honda São Bernardo do Campo to a new facility. The facility is owned by the Company and will enable significant uplift in new, used and aftersales business.

In June 2018, the Company disposed of 3 franchises, which included a BMW franchise in Kentish Town in the U.K., as well as a Mercedes-Benz franchise and Sprinter franchise in Escondido, California. These three stores generated approximately $115 million in trailing-twelve-month revenues.

Year-to-date 2018, the Company has acquired a total of 12 franchises, which are expected to generate an estimated $405 million in annual revenues; and the Company has disposed of three aforementioned franchises.

Second 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 second quarter financial results and the Company's outlook and strategy.

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

4003183

A telephonic replay will be available following the call through August 2, 2018 by dialing:

Domestic:

1-877-344-7529

International:

1-412-317-0088

Replay ID:

10122294

ABOUT GROUP 1 AUTOMOTIVE, INC.
Group 1 owns and operates 180 automotive dealerships, 236 franchises, and 48 collision centers in the United States, the United Kingdom and Brazil that offer 32 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service contracts; provides automotive maintenance and repair services; and sells vehicle parts.

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

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

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

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

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

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

Media contacts:
Pete DeLongchamps
Senior Vice President, Manufacturer Relations, Financial Services and Public Affairs
Group 1 Automotive, Inc.
713-647-5770 | pdelongchamps@group1auto.com
or
Clint Woods
Pierpont Communications, Inc.
713-627-2223 | cwoods@piercom.com

Group 1 Automotive, Inc.

Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)








 Three Months Ended June 30


2018


2017


% Increase/
(Decrease)

REVENUES:






New vehicle retail sales

$ 1,555,570


$ 1,448,768


7.4

Used vehicle retail sales

821,853


685,949


19.8

Used vehicle wholesale sales

92,854


99,377


(6.6)

Parts and service

358,129


331,631


8.0

Finance, insurance and other, net

115,056


106,470


8.1

 Total revenues 

2,943,462


2,672,195


10.2







COST OF SALES:






New vehicle retail sales

1,478,988


1,373,857


7.7

Used vehicle retail sales

770,639


641,036


20.2

Used vehicle wholesale sales

92,613


99,644


(7.1)

Parts and service

163,059


152,766


6.7

 Total cost of sales 

2,505,299


2,267,303


10.5







GROSS PROFIT

438,163


404,892


8.2







SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

308,092


298,568


3.2







DEPRECIATION AND AMORTIZATION EXPENSE

16,638


14,093


18.1







ASSET IMPAIRMENTS

4,268


-


100.0







OPERATING INCOME

109,165


92,231


18.4







OTHER EXPENSE:






Floorplan interest expense

(14,563)


(13,226)


10.1

Other interest expense, net

(19,414)


(17,315)


12.1

INCOME BEFORE INCOME TAXES

75,188


61,690


21.9







PROVISION FOR INCOME TAXES

(18,725)


(22,557)


(17.0)







NET INCOME 

$      56,463


$      39,133


44.3

Less: Earnings allocated to participating securities

$        1,916


$        1,389


37.9

Earnings available to diluted common shares

$      54,547


$      37,744


44.5

DILUTED EARNINGS PER SHARE

$          2.72


$          1.84


47.8

Weighted average dilutive common shares outstanding

20,046


20,522


(2.3)

Weighted average participating securities

708


761


(7.0)

Total weighted average shares outstanding

20,754


21,283


(2.5)








 Six Months Ended June 30


2018


2017


% Increase/

(Decrease)

REVENUES:






New vehicle retail sales

$ 3,069,160


$ 2,785,981


10.2

Used vehicle retail sales

1,602,423


1,346,876


19.0

Used vehicle wholesale sales

196,883


203,534


(3.3)

Parts and service

707,644


651,329


8.6

Finance, insurance and other, net

227,378


203,304


11.8

 Total revenues 

5,803,488


5,191,024


11.8







COST OF SALES:






New vehicle retail sales

2,917,151


2,641,843


10.4

Used vehicle retail sales

1,507,714


1,256,958


19.9

Used vehicle wholesale sales

194,987


203,701


(4.3)

Parts and service

325,710


300,108


8.5

 Total cost of sales 

4,945,562


4,402,610


12.3







GROSS PROFIT

857,926


788,414


8.8







SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

632,439


588,347


7.5







DEPRECIATION AND AMORTIZATION EXPENSE

32,980


27,699


19.1







ASSET IMPAIRMENTS

4,268


-


100.0







OPERATING INCOME

188,239


172,368


9.2







OTHER EXPENSE:






Floorplan interest expense

(28,650)


(25,168)


13.8

Other interest expense, net

(38,234)


(34,314)


11.4

INCOME BEFORE INCOME TAXES

121,355


112,886


7.5







PROVISION FOR INCOME TAXES

(29,078)


(39,814)


(27.0)







NET INCOME

$      92,277


$      73,072


26.3

Less: Earnings allocated to participating securities

$        3,123


$        2,645


18.1

Earnings available to diluted common shares

$      89,154


$      70,427


26.6

DILUTED EARNINGS PER SHARE

$          4.42


$          3.42


29.2

Weighted average dilutive common shares outstanding

20,176


20,609


(2.1)

Weighted average participating securities

712


789


(9.8)

Total weighted average shares outstanding

20,888


21,398


(2.4)

 

Group 1 Automotive, Inc.

Consolidated Balance Sheets

(Unaudited)

(Dollars in thousands)








June 30, 2018


December 31,
2017


% Increase/
(Decrease)

 ASSETS: 






 CURRENT ASSETS: 






 Cash and cash equivalents 

$           41,575


$          28,787


44.4

 Contracts in transit and vehicle receivables, net 

249,706


306,433


(18.5)

 Accounts and notes receivable, net 

178,339


188,611


(5.4)

 Inventories, net 

1,721,249


1,763,293


(2.4)

 Prepaid expenses and other current assets 

80,957


42,062


92.5

 Total current assets 

2,271,826


2,329,186


(2.5)

 PROPERTY AND EQUIPMENT, net 

1,348,521


1,318,959


2.2

 GOODWILL AND INTANGIBLE FRANCHISE RIGHTS 

1,233,201


1,198,666


2.9

 OTHER ASSETS 

33,194


24,254


36.9

 Total assets 

$      4,886,742


$     4,871,065


0.3







 LIABILITIES AND STOCKHOLDERS' EQUITY: 






 CURRENT LIABILITIES: 






 Floorplan notes payable - credit facility and other 

$      1,147,892


$     1,240,695


(7.5)

 Offset account related to floorplan notes payable - credit facility 

(119,562)


(86,547)


38.1

 Floorplan notes payable - manufacturer affiliates 

404,233


397,183


1.8

 Offset account related to floorplan notes payable - manufacturer affiliates 

(24,500)


(22,500)


8.9

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

76,412


77,609


(1.5)

 Current liabilities from interest rate risk management activities 

682


1,996


(65.8)

 Accounts payable 

442,577


412,981


7.2

 Accrued expenses 

189,027


177,070


6.8

 Total current liabilities 

2,116,761


2,198,487


(3.7)

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

542,888


542,063


0.2

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

296,440


296,151


0.1

 ACQUISITION LINE 

39,636


26,988


46.9

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

419,424


405,950


3.3

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

59,610


47,032


26.7

 DEFERRED INCOME TAXES 

138,478


124,404


11.3

 LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES 

1,597


8,583


(81.4)

 OTHER LIABILITIES 

99,296


97,125


2.2

 STOCKHOLDERS' EQUITY: 






 Common stock 

255


255


-

 Additional paid-in capital 

288,492


291,461


(1.0)

 Retained earnings 

1,339,185


1,246,323


7.5

 Accumulated other comprehensive loss 

(126,358)


(123,226)


2.5

 Treasury stock 

(328,962)


(290,531)


13.2

 Total stockholders' equity 

1,172,612


1,124,282


4.3

 Total liabilities and stockholders' equity 

$      4,886,742


$     4,871,065


0.3

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)












Three Months Ended


Six Months Ended



June 30,


June 30,



2018 (%)


2017 (%)


2018 (%)


2017 (%)

NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:








Region

Geographic Market








United States

Texas

35.2


36.6


35.4


35.6


California

6.4


7.9


6.5


7.9


Oklahoma

5.9


6.5


5.9


6.5


Massachusetts

4.7


4.9


4.7


4.7


Georgia

4.4


4.8


4.3


4.7


Florida

2.5


2.5


2.5


2.5


Louisiana

1.9


1.9


1.8


2.0


New Hampshire

1.8


2.3


1.8


2.0


New Jersey

1.7


1.9


1.6


1.7


South Carolina

1.6


1.5


1.6


1.4


Kansas

1.3


1.8


1.3


1.7


Mississippi

1.2


1.3


1.2


1.4


Alabama

0.6


1.1


0.6


1.1


Maryland

0.5


0.4


0.5


0.4


New Mexico 

0.2



0.1




69.9


75.4


69.8


73.6










International

United Kingdom

25.1


19.3


25.2


21.4


Brazil

5.0


5.3


5.0


5.0



100.0


100.0


100.0


100.0










NEW VEHICLE UNIT SALES BRAND MIX:








Toyota/Lexus

23.9


25.4


24.0


24.4

Volkswagen/Audi/Porsche

13.6


12.3


13.6


12.4

BMW/MINI

12.2


13.1


12.4


13.7

Ford/Lincoln

11.0


11.3


11.2


12.1

Honda/Acura

8.9


9.6


9.2


9.3

Nissan

6.0


7.6


6.4


7.9

Chevrolet/GMC/Buick/Cadillac

5.7


5.9


5.8


6.3

Mercedes-Benz/smart/Sprinter

5.4


4.2


5.0


4.1

Chrysler/Dodge/Jeep/RAM

4.1


4.1


4.1


3.9

Hyundai/Kia

3.8


4.3


3.9


3.9

Jaguar/Land Rover

1.9


0.4


1.9


0.4

Other

3.5


1.8


2.5


1.6



100.0


100.0


100.0


100.0

 

Group 1 Automotive, Inc.

Additional Information - U.S.

(Unaudited)

(Dollars in thousands, except per unit amounts)








Three Months Ended June 30,


2018


2017


% Increase/
(Decrease)

REVENUES:






New vehicle retail sales

$ 1,146,882


$ 1,143,771


0.3

Used vehicle retail sales

592,007


536,193


10.4

Used vehicle wholesale sales

42,781


66,476


(35.6)

Total used

634,788


602,669


5.3

Parts and service

288,889


282,698


2.2

Finance, insurance and other, net

97,442


94,552


3.1

Total

$ 2,168,001


$ 2,123,690


2.1







GROSS MARGIN %:






New vehicle retail sales

4.9


5.0



Used vehicle retail sales

6.6


6.8



Used vehicle wholesale sales

3.6


0.4



Total used

6.4


6.1



Parts and service

54.2


53.8



Finance, insurance and other, net

100.0


100.0



Total

16.2


16.0









GROSS PROFIT:






New vehicle retail sales

$      56,358


$      57,000


(1.1)

Used vehicle retail sales

38,809


36,704


5.7

Used vehicle wholesale sales

1,553


246


531.3

Total used

40,362


36,950


9.2

Parts and service

156,508


151,971


3.0

Finance, insurance and other, net

97,442


94,552


3.1

Total 

$    350,670


$    340,473


3.0







UNITS SOLD:






Retail new vehicles sold

30,388


30,802


(1.3)

Retail used vehicles sold

28,484


25,202


13.0

Wholesale used vehicles sold

7,292


9,701


(24.8)

Total used

35,776


34,903


2.5







AVERAGE RETAIL SALES PRICE:






New vehicle retail

$      37,741


$      37,133


1.6

Used vehicle retail

$      20,784


$      21,276


(2.3)







GROSS PROFIT PER UNIT SOLD:






New vehicle retail sales

$        1,855


$        1,851


0.2

Used vehicle retail sales

1,362


1,456


(6.5)

Used vehicle wholesale sales

213


25


752.0

Total used

1,128


1,059


6.5

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

$        1,655


$        1,688


(2.0)







OTHER: 






SG&A expenses

$    234,279


$    243,844


(3.9)

Adjusted SG&A expenses(1)

$    246,586


$    243,201


1.4

SG&A as % revenues

10.8


11.5



Adjusted SG&A as % revenues(1)

11.4


11.5



SG&A as % gross profit

66.8


71.6



Adjusted SG&A as % gross profit(1)

70.3


71.4



Operating margin %

4.6


4.0



Adjusted operating margin %(1)

4.2


4.0



Pretax margin %

3.2


2.6



Adjusted pretax margin % (1)

2.8


2.7









INTEREST EXPENSE:






Floorplan interest expense

$    (12,809)


$    (12,062)


6.2

Floorplan assistance

11,206


11,452


(2.1)

Net floorplan expense

$      (1,603)


$         (610)


162.8

Other interest expense, net

$    (17,332)


$    (16,572)


4.6








Six Months Ended June 30,


2018


2017


% Increase/
(Decrease)

REVENUES:






New vehicle retail sales

$ 2,236,835


$ 2,162,020


3.5

Used vehicle retail sales

1,155,837


1,058,140


9.2

Used vehicle wholesale sales

96,783


137,021


(29.4)

Total used

1,252,620


1,195,161


4.8

Parts and service

573,403


553,857


3.5

Finance, insurance and other, net

193,629


180,371


7.4

Total 

$ 4,256,487


$ 4,091,409


4.0







GROSS MARGIN %:






New vehicle retail sales

4.9


5.0



Used vehicle retail sales

6.3


7.1



Used vehicle wholesale sales

3.1


(0.1)



Total used

6.0


6.2



Parts and service

53.7


53.8



Finance, insurance and other, net

100.0


100.0



Total

16.1


16.2









GROSS PROFIT:






New vehicle retail sales

$    109,493


$    108,209


1.2

Used vehicle retail sales

72,294


74,636


(3.1)

Used vehicle wholesale sales

2,987


(116)


2675.0

Total used

75,281


74,520


1.0

Parts and service

307,952


297,969


3.4

Finance, insurance and other, net

193,629


180,371


7.4

Total 

$    686,355


$    661,069


3.8







UNITS SOLD:






Retail new vehicles sold

59,061


58,300


1.3

Retail used vehicles sold

55,794


50,131


11.3

Wholesale used vehicles sold

16,675


19,682


(15.3)

Total used

72,469


69,813


3.8







AVERAGE RETAIL SALES PRICE:






New vehicle retail

$      37,873


$      37,084


2.1

Used vehicle retail

$      20,716


$      21,107


(1.9)







GROSS PROFIT PER UNIT SOLD:






New vehicle retail sales

$        1,854


$        1,856


(0.1)

Used vehicle retail sales

1,296


1,489


(13.0)

Used vehicle wholesale sales

179


(6)


3083.3

Total used

1,039


1,067


(2.6)

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

$        1,686


$        1,663


1.4







OTHER: 






SG&A expenses

$    487,220


$    480,117


1.5

Adjusted SG&A expenses(1)

$    499,527


$    481,307


3.8

SG&A as % revenues

11.4


11.7



Adjusted SG&A as % revenues (1)

11.7


11.8



SG&A as % gross profit

71.0


72.6



Adjusted SG&A as % gross profit (1)

72.8


72.8



Operating margin %

4.0


3.8



Adjusted operating margin %(1)

3.8


3.8



Pretax margin %

2.6


2.5



Adjusted pretax margin %(1)

2.4


2.5









INTEREST EXPENSE:






Floorplan interest expense

$    (25,146)


$    (22,940)


9.6

Floorplan assistance

21,956


21,736


1.0

Net floorplan expense

$      (3,190)


$      (1,204)


165.0

Other interest expense, net

$    (34,348)


$    (32,844)


4.6







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

 

Group 1 Automotive, Inc.

Additional Information - U.K.

(Unaudited)

(Dollars in thousands, except per unit amounts)










Three Months Ended June 30,


2018


2017


% Increase/
(Decrease)


Constant Currency (1)
% Increase/ (Decrease)

REVENUES:








New vehicle retail sales

$       338,635


$   231,415


46.3


37.7

Used vehicle retail sales

208,108


128,406


62.1


52.4

Used vehicle wholesale sales

46,527


30,448


52.8


43.7

Total used

254,635


158,854


60.3


50.7

Parts and service

57,996


37,050


56.5


47.3

Finance, insurance and other, net

15,617


9,784


59.6


50.7

Total

$       666,883


$   437,103


52.6


43.6









GROSS MARGIN %:








New vehicle retail sales

4.7


5.9





Used vehicle retail sales

5.3


5.2





Used vehicle wholesale sales

(3.0)


(2.3)





Total used

3.8


3.8





Parts and service

57.9


57.9





Finance, insurance and other, net

100.0


100.0





Total

11.2


11.7













GROSS PROFIT:








New vehicle retail sales

$         15,907


$     13,744


15.7


9.5

Used vehicle retail sales

11,103


6,679


66.2


55.2

Used vehicle wholesale sales

(1,378)


(715)


(92.7)


(82.7)

Total used

9,725


5,964


63.1


51.9

Parts and service

33,555


21,440


56.5


47.4

Finance, insurance and other, net

15,617


9,784


59.6


50.7

Total 

$         74,804


$     50,932


46.9


38.3









UNITS SOLD:








Retail new vehicles sold

10,914


7,894


38.3



Retail used vehicles sold

8,501


5,813


46.2



Wholesale used vehicles sold

5,955


4,137


43.9



Total used

14,456


9,950


45.3











AVERAGE RETAIL SALES PRICE:








New vehicle retail

$         31,028


$     29,315


5.8


(0.4)

Used vehicle retail

$         24,480


$     22,089


10.8


4.2









GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$           1,457


$       1,741


(16.3)


(20.8)

Used vehicle retail sales

1,306


1,149


13.7


6.1

Used vehicle wholesale sales

(231)


(173)


(33.5)


(26.9)

Total used

673


599


12.4


4.5

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

$              804


$          714


12.6


6.4









OTHER: 








SG&A expenses

$         62,258


$     42,456


46.6


37.8

Adjusted SG&A expenses(1)

$         62,258


$     42,168


47.6


38.7

SG&A as % revenues

9.3


9.7





Adjusted SG&A as % revenues (1)

9.3


9.6





SG&A as % gross profit

83.2


83.4





Adjusted SG&A as % gross profit (1)

83.2


82.8





Operating margin %

1.4


1.5





Adjusted operating margin % (1)

1.4


1.6





Pretax margin %

0.9


1.1





Adjusted pretax margin % (1)

0.9


1.2













INTEREST EXPENSE:








Floorplan interest expense

$         (1,617)


$      (1,053)


53.6


44.3

Floorplan assistance

240


220


9.1


2.8

Net floorplan expense

$         (1,377)


$         (833)


65.3


55.2

Other interest expense, net

$         (1,790)


$         (684)


161.7


144.4


















Six Months Ended June 30,


2018


2017


% Increase/

(Decrease)


Constant Currency (1)
% Increase/ (Decrease)

REVENUES:








New vehicle retail sales

$       693,039


$   490,055


41.4


29.1

Used vehicle retail sales

400,657


243,775


64.4


50.6

Used vehicle wholesale sales

92,712


60,957


52.1


39.1

Total used

493,369


304,732


61.9


48.3

Parts and service

111,137


73,831


50.5


37.8

Finance, insurance and other, net

29,880


18,812


58.8


45.6

Total 

$    1,327,425


$   887,430


49.6


36.7









GROSS MARGIN %:








New vehicle retail sales

5.0


5.7





Used vehicle retail sales

4.9


5.0





Used vehicle wholesale sales

(1.4)


(0.8)





Total used

3.7


3.8





Parts and service

57.2


57.8





Finance, insurance and other, net

100.0


100.0





Total

11.0


11.4













GROSS PROFIT:








New vehicle retail sales

$         34,418


$     28,145


22.3


11.8

Used vehicle retail sales

19,663


12,108


62.4


48.4

Used vehicle wholesale sales

(1,308)


(504)


(159.5)


(150.8)

Total used

18,355


11,604


58.2


44.0

Parts and service

63,602


42,665


49.1


36.6

Finance, insurance and other, net

29,880


18,812


58.8


45.6

Total 

$       146,255


$   101,226


44.5


32.2









UNITS SOLD:








Retail new vehicles sold

21,364


16,912


26.3



Retail used vehicles sold

16,336


11,424


43.0



Wholesale used vehicles sold

11,542


8,306


39.0



Total used

27,878


19,730


41.3











AVERAGE RETAIL SALES PRICE:








New vehicle retail

$         32,440


$     28,977


12.0


2.2

Used vehicle retail

$         24,526


$     21,339


14.9


5.3









GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$           1,611


$       1,664


(3.2)


(11.5)

Used vehicle retail sales

1,204


1,060


13.6


3.8

Used vehicle wholesale sales

(113)


(61)


(85.2)


(80.5)

Total used

658


588


11.9


1.9

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

$              793


$          664


19.4


9.5









OTHER: 








SG&A expenses

$       121,854


$     84,080


44.9


32.6

Adjusted SG&A expenses(1)

$       121,854


$     83,792


45.4


33.0

SG&A as % revenues

9.2


9.5





Adjusted SG&A as % revenues (1)

9.2


9.4





SG&A as % gross profit

83.3


83.1





Adjusted SG&A as % gross profit (1)

83.3


82.8





Operating margin %

1.4


1.5





Adjusted operating margin % (1)

1.4


1.6





Pretax margin %

0.9


1.2





Adjusted pretax margin % (1)

0.9


1.2













INTEREST EXPENSE:








Floorplan interest expense

$         (3,131)


$      (2,087)


50.0


37.3

Floorplan assistance

526


449


17.1


6.8

Net floorplan expense

$         (2,605)


$      (1,638)


59.0


45.6

Other interest expense, net

$         (3,322)


$      (1,265)


162.6


140.3







(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 - Brazil

(Unaudited)

(Dollars in thousands, except per unit amounts)










Three Months Ended June 30,


2018


2017


% Increase/
(Decrease)


Constant Currency (1)
% Increase/ (Decrease)

REVENUES:








New vehicle retail sales

$   70,053


$   73,582


(4.8)


6.2

Used vehicle retail sales

21,738


21,350


1.8


13.6

Used vehicle wholesale sales

3,546


2,453


44.6


63.5

Total used

25,284


23,803


6.2


18.8

Parts and service

11,244


11,883


(5.4)


5.8

Finance, insurance and other, net

1,997


2,134


(6.4)


4.6

Total

$ 108,578


$ 111,402


(2.5)


8.8









GROSS MARGIN %:








New vehicle retail sales

6.2


5.7





Used vehicle retail sales

6.0


7.2





Used vehicle wholesale sales

1.9


8.2





Total used

5.4


7.3





Parts and service

44.5


45.9





Finance, insurance and other, net

100.0


100.0





Total

11.7


12.1













GROSS PROFIT:








New vehicle retail sales

$     4,317


$     4,167


3.6


15.6

Used vehicle retail sales

1,302


1,530


(14.9)


(4.9)

Used vehicle wholesale sales

66


202


(67.3)


(66.7)

Total used

1,368


1,732


(21.0)


(12.2)

Parts and service

5,007


5,454


(8.2)


2.6

Finance, insurance and other, net

1,997


2,134


(6.4)


4.6

Total 

$   12,689


$   13,487


(5.9)


5.0









UNITS SOLD:








Retail new vehicles sold

2,169


2,180


(0.5)



Retail used vehicles sold

1,023


988


3.5



Wholesale used vehicles sold

322


237


35.9



Total used

1,345


1,225


9.8











AVERAGE RETAIL SALES PRICE:








New vehicle retail

$   32,297


$   33,753


(4.3)


6.8

Used vehicle retail

$   21,249


$   21,609


(1.7)


9.7









GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$     1,990


$     1,911


4.1


16.1

Used vehicle retail sales

1,273


1,549


(17.8)


(8.2)

Used vehicle wholesale sales

205


852


(75.9)


(75.5)

Total used

1,017


1,414


(28.1)


(20.0)

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

$        626


$        674


(7.1)


3.8









OTHER: 








SG&A expenses

$   11,555


$   12,268


(5.8)


5.3

Adjusted SG&A expenses(1)

$   11,005


$   12,268


(10.3)


0.1

SG&A as % revenues

10.6


11.0





Adjusted SG&A as % revenues (1)

10.1


11.0





SG&A as % gross profit

91.1


91.0





Adjusted SG&A as % gross profit (1)

86.7


91.0





Operating margin %

0.6


0.8





Adjusted operating margin % (1)

1.1


0.8





Pretax margin %

0.2


0.6





Adjusted pretax margin % (1)

0.7


0.6













INTEREST EXPENSE:








Floorplan interest expense

$      (137)


$      (111)


23.4


37.1

Floorplan assistance



-


-

Net floorplan expense

$      (137)


$      (111)


23.4


37.1

Other interest expense, net

$      (292)


$        (59)


394.9


442.1


















Six Months Ended June 30,


2018


2017


% Increase/
(Decrease)


Constant Currency (1)
% Increase/ (Decrease)

REVENUES:








New vehicle retail sales

$ 139,286


$ 133,906


4.0


11.8

Used vehicle retail sales

45,929


44,961


2.2


9.6

Used vehicle wholesale sales

7,388


5,556


33.0


44.1

Total used

53,317


50,517


5.5


13.4

Parts and service

23,104


23,641


(2.3)


5.0

Finance, insurance and other, net

3,869


4,121


(6.1)


1.3

Total 

$ 219,576


$ 212,185


3.5


11.2









GROSS MARGIN %:








New vehicle retail sales

5.8


5.8





Used vehicle retail sales

6.0


7.1





Used vehicle wholesale sales

2.9


8.2





Total used

5.6


7.2





Parts and service

44.9


44.8





Finance, insurance and other, net

100.0


100.0





Total

11.5


12.3













GROSS PROFIT:








New vehicle retail sales

$     8,098


$     7,784


4.0


12.2

Used vehicle retail sales

2,752


3,174


(13.3)


(7.0)

Used vehicle wholesale sales

217


453


(52.1)


(50.7)

Total used

2,969


3,627


(18.1)


(12.4)

Parts and service

10,380


10,587


(2.0)


5.2

Finance, insurance and other, net

3,869


4,121


(6.1)


1.3

Total 

$   25,316


$   26,119


(3.1)


4.2









UNITS SOLD:








Retail new vehicles sold

4,236


3,954


7.1



Retail used vehicles sold

2,094


2,014


4.0



Wholesale used vehicles sold

679


616


10.2



Total used

2,773


2,630


5.4











AVERAGE RETAIL SALES PRICE:








New vehicle retail

$   32,881


$   33,866


(2.9)


4.4

Used vehicle retail

$   21,934


$   22,324


(1.7)


5.4









GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$     1,912


$     1,969


(2.9)


4.7

Used vehicle retail sales

1,314


1,576


(16.6)


(10.5)

Used vehicle wholesale sales

320


735


(56.5)


(55.3)

Total used

1,071


1,379


(22.3)


(16.9)

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

$        611


$        691


(11.6)


(4.5)









OTHER: 








SG&A expenses

$   23,365


$   24,150


(3.3)


4.0

Adjusted SG&A expenses(1)

$   22,815


$   24,150


(5.5)


1.3

SG&A as % revenues

10.6


11.4





Adjusted SG&A as % revenues (1)

10.4


11.4





SG&A as % gross profit

92.3


92.5





Adjusted SG&A as % gross profit (1)

90.1


92.5





Operating margin %

0.5


0.6





Adjusted operating margin % (1)

0.7


0.6





Pretax margin %

0.1


0.4





Adjusted pretax margin % (1)

0.3


0.4













INTEREST EXPENSE:








Floorplan interest expense

$      (373)


$      (141)


164.5


178.2

Floorplan assistance



-


-

Net floorplan expense

$      (373)


$      (141)


164.5


178.2

Other interest expense, net

$      (564)


$      (205)


175.1


193.7







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

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

(Dollars in thousands, except per unit amounts)










Three Months Ended June 30,


2018


2017


% Increase/

(Decrease)


Constant Currency % (1)
Increase/ (Decrease)

REVENUES:








New vehicle retail sales

$     1,555,570


$     1,448,768


7.4


6.6

Used vehicle retail sales

821,853


685,949


19.8


18.4

Used vehicle wholesale sales

92,854


99,377


(6.6)


(8.9)

Total used

914,707


785,326


16.5


14.9

Parts and service

358,129


331,631


8.0


7.4

Finance, insurance and other, net

115,056


106,470


8.1


7.5

Total

$     2,943,462


$     2,672,195


10.2


9.2









GROSS MARGIN %:








New vehicle retail sales

4.9


5.2





Used vehicle retail sales

6.2


6.5





Used vehicle wholesale sales

0.3


(0.3)





Total used

5.6


5.7





Parts and service

54.5


53.9





Finance, insurance and other, net

100.0


100.0





Total

14.9


15.2













GROSS PROFIT:








New vehicle retail sales

$          76,582


$          74,911


2.2


1.8

Used vehicle retail sales

51,214


44,913


14.0


12.7

Used vehicle wholesale sales

241


(267)


190.3


217.3

Total used

51,455


44,646


15.3


14.1

Parts and service

195,070


178,865


9.1


8.3

Finance, insurance and other, net

115,056


106,470


8.1


7.5

Total 

$        438,163


$        404,892


8.2


7.5









UNITS SOLD:








Retail new vehicles sold

43,471


40,876


6.3



Retail used vehicles sold

38,008


32,003


18.8



Wholesale used vehicles sold

13,569


14,075


(3.6)



Total used

51,577


46,078


11.9











AVERAGE RETAIL SALES PRICE:








New vehicle retail

$          35,784


$          35,443


1.0


0.2

Used vehicle retail

$          21,623


$          21,434


0.9


(0.3)









GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$            1,762


$            1,833


(3.9)


(4.3)

Used vehicle retail sales

1,347


1,403


(4.0)


(5.1)

Used vehicle wholesale sales

18


(19)


194.7


221.7

Total used

998


969


3.0


1.9

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

$            1,412


$            1,461


(3.4)


(3.9)









OTHER: 








SG&A expenses

$        308,092


$        298,568


3.2


2.4

Adjusted SG&A expenses (1)

$        319,849


$        297,637


7.5


6.6

SG&A as % revenues

10.5


11.2





Adjusted SG&A as % revenues (1)

10.9


11.1





SG&A as % gross profit

70.3


73.7





Adjusted SG&A as % gross profit (1)

73.0


73.5





Operating margin %

3.7


3.5





Adjusted operating margin % (1)

3.5


3.5





Pretax margin %

2.6


2.3





Adjusted pretax margin % (1)

2.3


2.3













INTEREST EXPENSE:








Floorplan interest expense

$        (14,563)


$        (13,226)


10.1


9.5

Floorplan assistance

11,447


11,672


(1.9)


(2.1)

Net floorplan expense

$          (3,116)


$          (1,554)


100.5


96.2

Other interest expense, net

$        (19,414)


$        (17,315)


12.1


11.6


















Six Months Ended June 30,


2018


2017


% Increase/
(Decrease)


Constant Currency % (1)
Increase/ (Decrease)

REVENUES:








New vehicle retail sales

$     3,069,160


$     2,785,981


10.2


8.4

Used vehicle retail sales

1,602,423


1,346,876


19.0


16.7

Used vehicle wholesale sales

196,883


203,534


(3.3)


(6.8)

Total used

1,799,306


1,550,410


16.1


13.6

Parts and service

707,644


651,329


8.6


7.5

Finance, insurance and other, net

227,378


203,304


11.8


10.8

Total 

$     5,803,488


$     5,191,024


11.8


9.9









GROSS MARGIN %:








New vehicle retail sales

5.0


5.2





Used vehicle retail sales

5.9


6.7





Used vehicle wholesale sales

1.0


(0.1)





Total used

5.4


5.8





Parts and service

54.0


53.9





Finance, insurance and other, net

100.0


100.0





Total

14.8


15.2













GROSS PROFIT:








New vehicle retail sales

$        152,009


$        144,138


5.5


3.9

Used vehicle retail sales

94,709


89,918


5.3


3.7

Used vehicle wholesale sales

1,896


(167)


1235.3


1266.5

Total used

96,605


89,751


7.6


6.0

Parts and service

381,934


351,221


8.7


7.4

Finance, insurance and other, net

227,378


203,304


11.8


10.8

Total 

$        857,926


$        788,414


8.8


7.5









UNITS SOLD:








Retail new vehicles sold

84,661


79,166


6.9



Retail used vehicles sold

74,224


63,569


16.8



Wholesale used vehicles sold

28,896


28,604


1.0



Total used

103,120


92,173


11.9











AVERAGE RETAIL SALES PRICE:








New vehicle retail

$          36,252


$          35,192


3.0


1.3

Used vehicle retail

$          21,589


$          21,188


1.9


-









GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$            1,796


$            1,821


(1.4)


(2.9)

Used vehicle retail sales

1,276


1,414


(9.8)


(11.2)

Used vehicle wholesale sales

66


(6)


1200.0


1254.7

Total used

937


974


(3.8)


(5.2)

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

$            1,431


$            1,424


0.5


(0.5)









OTHER: 








SG&A expenses

$        632,439


$        588,347


7.5


6.0

Adjusted SG&A expenses(1)

$        644,196


$        589,249


9.3


7.8

SG&A as % revenues

10.9


11.3





Adjusted SG&A as % revenues (1)

11.1


11.4





SG&A as % gross profit

73.7


74.6





Adjusted SG&A as % gross profit(1)

75.1


74.7





Operating margin %

3.2


3.3





Adjusted operating margin % (1)

3.1


3.3





Pretax margin %

2.1


2.2





Adjusted pretax margin %(1)

2.0


2.2













INTEREST EXPENSE:








Floorplan interest expense

$        (28,650)


$        (25,168)


13.8


12.9

Floorplan assistance

22,482


22,185


1.3


1.1

Net floorplan expense

$          (6,168)


$          (2,983)


106.8


100.0

Other interest expense, net

$        (38,234)


$        (34,314)


11.4


10.7








(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 - Same Store U.S. (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)








Three Months Ended June 30,


2018


2017


% Increase/
(Decrease)

REVENUES:






New vehicle retail sales

$ 1,121,138


$ 1,139,798


(1.6)

Used vehicle retail sales

579,816


534,934


8.4

Used vehicle wholesale sales

41,158


66,187


(37.8)

Total used

620,974


601,121


3.3

Parts and service

284,494


281,555


1.0

Finance, insurance and other, net

95,298


93,933


1.5

Total 

$ 2,121,904


$ 2,116,407


0.3







GROSS MARGIN %:






New vehicle retail sales

4.9


5.0



Used vehicle retail sales

6.5


6.9



Used vehicle wholesale sales

3.8


0.4



Total used

6.3


6.1



Parts and service

54.2


53.8



Finance, insurance and other, net

100.0


100.0



Total

16.2


16.0









GROSS PROFIT:






New vehicle retail sales

$      54,648


$      56,783


(3.8)

Used vehicle retail sales

37,716


36,649


2.9

Used vehicle wholesale sales

1,561


254


514.6

Total used

39,277


36,903


6.4

Parts and service

154,088


151,348


1.8

Finance, insurance and other, net

95,298


93,933


1.5

Total 

$    343,311


$    338,967


1.3







UNITS SOLD:






Retail new vehicles sold

29,830


30,730


(2.9)

Retail used vehicles sold

27,971


25,169


11.1

Wholesale used vehicles sold

7,133


9,681


(26.3)

Total used

35,104


34,850


0.7







AVERAGE RETAIL SALES PRICE:






New vehicle retail

$      37,584


$      37,091


1.3

Used vehicle retail

$      20,729


$      21,254


(2.5)







GROSS PROFIT PER UNIT SOLD:






New vehicle retail sales

$        1,832


$        1,848


(0.9)

Used vehicle retail sales

1,348


1,456


(7.4)

Used vehicle wholesale sales

219


26


742.3

Total used

1,119


1,059


5.7

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

$        1,649


$        1,680


(1.8)







OTHER: 






SG&A expenses

$    249,033


$    242,559


2.7

Adjusted SG&A expenses(2)

$    241,221


$    241,916


(0.3)

SG&A as % revenues

11.7


11.5



Adjusted SG&A as % revenues (2)

11.4


11.4



SG&A as % gross profit

72.5


71.6



Adjusted SG&A as % gross profit (2)

70.3


71.4



Operating margin %

3.7


4.0



Adjusted operating margin % (2)

4.2


4.0










Six Months Ended June 30,


2018


2017


% Increase/
(Decrease)

REVENUES:






New vehicle retail sales

$ 2,189,357


$ 2,158,047


1.5

Used vehicle retail sales

1,133,549


1,056,879


7.3

Used vehicle wholesale sales

93,938


136,732


(31.3)

Total used

1,227,487


1,193,611


2.8

Parts and service

564,897


552,714


2.2

Finance, insurance and other, net

189,450


179,323


5.6

Total 

$ 4,171,191


$ 4,083,695


2.1







GROSS MARGIN %:






New vehicle retail sales

4.9


5.0



Used vehicle retail sales

6.2


7.1



Used vehicle wholesale sales

3.2


(0.1)



Total used

6.0


6.2



Parts and service

53.6


53.8



Finance, insurance and other, net

100.0


100.0



Total

16.1


16.1









GROSS PROFIT:






New vehicle retail sales

$    106,718


$    107,991


(1.2)

Used vehicle retail sales

70,744


74,579


(5.1)

Used vehicle wholesale sales

2,986


(90)


3,417.8

Total used

73,730


74,489


(1.0)

Parts and service

302,998


297,346


1.9

Finance, insurance and other, net

189,450


179,323


5.6

Total 

$    672,896


$    659,149


2.1







UNITS SOLD:






Retail new vehicles sold

57,980


58,228


(0.4)

Retail used vehicles sold

54,829


50,098


9.4

Wholesale used vehicles sold

16,356


19,662


(16.8)

Total used

71,185


69,760


2.0







AVERAGE RETAIL SALES PRICE:






New vehicle retail

$      37,761


$      37,062


1.9

Used vehicle retail

$      20,674


$      21,096


(2.0)







GROSS PROFIT PER UNIT SOLD:






New vehicle retail sales

$        1,841


$        1,855


(0.8)

Used vehicle retail sales

1,290


1,489


(13.4)

Used vehicle wholesale sales

183


(5)


3,760.0

Total used

1,036


1,068


(3.0)

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

$        1,679


$        1,655


1.5







OTHER: 






SG&A expenses

$    496,645


$    478,610


3.8

Adjusted SG&A expenses(2)

$    488,833


$    479,800


1.9

SG&A as % revenues

11.9


11.7



Adjusted SG&A as % revenues (2)

11.7


11.7



SG&A as % gross profit

73.8


72.6



Adjusted SG&A as % gross profit (2)

72.6


72.8



Operating margin %

3.5


3.9



Adjusted operating margin % (2)

3.8


3.8









(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 U.K. (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)










Three Months Ended June 30,


2018


2017


% Increase/

(Decrease)


Constant Currency (2)
% Increase/ (Decrease)

REVENUES:








New vehicle retail sales

$ 254,118


$ 229,878


10.5


4.0

Used vehicle retail sales

149,344


127,475


17.2


10.2

Used vehicle wholesale sales

34,939


30,247


15.5


8.7

Total used

184,283


157,722


16.8


9.9

Parts and service

42,786


36,808


16.2


9.4

Finance, insurance and other, net

11,895


9,734


22.2


15.3

Total 

$ 493,082


$ 434,142


13.6


6.9









GROSS MARGIN %:








New vehicle retail sales

5.2


6.0





Used vehicle retail sales

5.3


5.2





Used vehicle wholesale sales

(2.7)


(2.3)





Total used

3.8


3.8





Parts and service

58.2


57.9





Finance, insurance and other, net

100.0


100.0





Total

11.6


11.7













GROSS PROFIT:








New vehicle retail sales

$   13,251


$   13,702


(3.3)


(8.5)

Used vehicle retail sales

7,974


6,636


20.2


12.3

Used vehicle wholesale sales

(928)


(696)


(33.3)


(25.9)

Total used

7,046


5,940


18.6


10.7

Parts and service

24,904


21,316


16.8


10.0

Finance, insurance and other, net

11,895


9,734


22.2


15.3

Total 

$   57,096


$   50,692


12.6


6.1









UNITS SOLD:








Retail new vehicles sold

8,374


7,812


7.2



Retail used vehicles sold

5,998


5,758


4.2



Wholesale used vehicles sold

4,487


4,104


9.3



Total used

10,485


9,862


6.3











AVERAGE RETAIL SALES PRICE:








New vehicle retail

$   30,346


$   29,426


3.1


(2.9)

Used vehicle retail

$   24,899


$   22,139


12.5


5.8









GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$     1,582


$     1,754


(9.8)


(14.7)

Used vehicle retail sales

1,329


1,152


15.4


7.8

Used vehicle wholesale sales

(207)


(170)


(21.8)


(15.2)

Total used

672


602


11.6


4.1

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

$        828


$        717


15.5


8.9









OTHER: 








SG&A expenses

$   46,319


$   42,087


10.1


3.4

Adjusted SG&A expenses(2)

$   46,319


$   41,799


10.8


4.1

SG&A as % revenues

9.4


9.7





Adjusted SG&A as % revenues (2)

9.4


9.6





SG&A as % gross profit

81.1


83.0





Adjusted SG&A as % gross profit (2)

81.1


82.5





Operating margin %

1.7


1.6





Adjusted operating margin % (2)

1.7


1.6














Six Months Ended June 30,


2018


2017


% Increase/
(Decrease)


Constant Currency (2)
% Increase/ (Decrease)

REVENUES:








New vehicle retail sales

$ 524,178


$ 486,582


7.7


(1.7)

Used vehicle retail sales

295,584


242,281


22.0


11.7

Used vehicle wholesale sales

71,012


60,662


17.1


7.1

Total used

366,596


302,943


21.0


10.8

Parts and service

84,011


73,254


14.7


5.0

Finance, insurance and other, net

22,530


18,707


20.4


10.4

Total 

$ 997,315


$ 881,486


13.1


3.4









GROSS MARGIN %:








New vehicle retail sales

5.3


5.8





Used vehicle retail sales

5.0


5.0





Used vehicle wholesale sales

(1.4)


(0.8)





Total used

3.7


3.8





Parts and service

57.6


57.9





Finance, insurance and other, net

100.0


100.0





Total

11.3


11.4













GROSS PROFIT:








New vehicle retail sales

$   27,835


$   27,999


(0.6)


(9.1)

Used vehicle retail sales

14,645


12,019


21.8


11.4

Used vehicle wholesale sales

(978)


(484)


(102.1)


(94.1)

Total used

13,667


11,535


18.5


7.9

Parts and service

48,409


42,389


14.2


4.6

Finance, insurance and other, net

22,530


18,707


20.4


10.4

Total 

$ 112,441


$ 100,630


11.7


2.3









UNITS SOLD:








Retail new vehicles sold

16,386


16,716


(2.0)



Retail used vehicles sold

11,862


11,336


4.6



Wholesale used vehicles sold

8,820


8,246


7.0



Total used

20,682


19,582


5.6











AVERAGE RETAIL SALES PRICE:








New vehicle retail

$   31,989


$   29,109


9.9


0.3

Used vehicle retail

$   24,919


$   21,373


16.6


6.8









GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$     1,699


$     1,675


1.4


(7.2)

Used vehicle retail sales

1,235


1,060


16.5


6.4

Used vehicle wholesale sales

(111)


(59)


(88.1)


(81.5)

Total used

661


589


12.2


2.1

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

$        798


$        667


19.6


9.7









OTHER: 








SG&A expenses

$   93,134


$   83,017


12.2


2.6

Adjusted SG&A expenses(2)

$   93,134


$   82,729


12.6


3.0

SG&A as % revenues

9.3


9.4





Adjusted SG&A as % revenues (2)

9.3


9.4





SG&A as % gross profit

82.8


82.5





Adjusted SG&A as % gross profit (2)

82.8


82.2





Operating margin %

1.5


1.6





Adjusted operating margin % (2)

1.5


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 June 30,


2018


2017


% Increase/
(Decrease)


Constant Currency (2)

% Increase/ (Decrease)

REVENUES:








New vehicle retail sales

$   67,152


$   73,584


(8.7)


1.7

Used vehicle retail sales

21,270


21,350


(0.4)


11.1

Used vehicle wholesale sales

3,547


2,453


44.6


63.5

Total used

24,817


23,803


4.3


16.5

Parts and service

10,932


11,887


(8.0)


2.7

Finance, insurance and other, net

1,966


2,090


(5.9)


5.1

Total 

$ 104,867


$ 111,364


(5.8)


5.0









GROSS MARGIN %:








New vehicle retail sales

6.2


5.7





Used vehicle retail sales

6.0


7.2





Used vehicle wholesale sales

1.9


8.2





Total used

5.4


7.3





Parts and service

44.2


45.9





Finance, insurance and other, net

100.0


100.0





Total

11.7


12.1













GROSS PROFIT:








New vehicle retail sales

$     4,166


$     4,169


(0.1)


11.4

Used vehicle retail sales

1,278


1,537


(16.9)


(7.1)

Used vehicle wholesale sales

66


202


(67.3)


(66.7)

Total used

1,344


1,739


(22.7)


(14.1)

Parts and service

4,831


5,457


(11.5)


(1.2)

Finance, insurance and other, net

1,966


2,090


(5.9)


5.1

Total 

$   12,307


$   13,455


(8.5)


2.0









UNITS SOLD:








Retail new vehicles sold

2,063


2,180


(5.4)



Retail used vehicles sold

996


988


0.8



Wholesale used vehicles sold

314


237


32.5



Total used

1,310


1,225


6.9











AVERAGE RETAIL SALES PRICE:








New vehicle retail

$   32,551


$   33,754


(3.6)


7.5

Used vehicle retail

$   21,355


$   21,609


(1.2)


10.2









GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$     2,019


$     1,912


5.6


17.7

Used vehicle retail sales

1,283


1,556


(17.5)


(7.9)

Used vehicle wholesale sales

210


852


(75.4)


(74.9)

Total used

1,026


1,420


(27.7)


(19.6)

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

$        643


$        660


(2.6)


8.9









OTHER: 








SG&A expenses

$   11,080


$   12,031


(7.9)


3.1

Adjusted SG&A expenses(2)

$   10,653


$   12,031


(11.5)


(1.1)

SG&A as % revenues

10.6


10.8





Adjusted SG&A as % revenues (2)

10.2


10.8





SG&A as % gross profit

90.0


89.4





Adjusted SG&A as % gross profit (2)

86.6


89.4





Operating margin %

0.7


1.0





Adjusted operating margin % (2)

1.1


1.0














Six Months Ended June 30,


2018


2017


% Increase/

(Decrease)


Constant Currency (2)
% Increase/ (Decrease)

REVENUES:








New vehicle retail sales

$ 136,387


$ 131,670


3.6


11.2

Used vehicle retail sales

45,461


43,151


5.4


13.0

Used vehicle wholesale sales

7,388


5,539


33.4


44.5

Total used

52,849


48,690


8.5


16.6

Parts and service

22,791


22,985


(0.8)


6.4

Finance, insurance and other, net

3,838


3,881


(1.1)


6.6

Total 

$ 215,865


$ 207,226


4.2


11.8









GROSS MARGIN %:








New vehicle retail sales

5.8


5.8





Used vehicle retail sales

6.0


7.3





Used vehicle wholesale sales

2.9


8.2





Total used

5.6


7.4





Parts and service

44.8


45.7





Finance, insurance and other, net

100.0


100.0





Total

11.6


12.4













GROSS PROFIT:








New vehicle retail sales

$     7,948


$     7,688


3.4


11.4

Used vehicle retail sales

2,730


3,129


(12.8)


(6.4)

Used vehicle wholesale sales

217


453


(52.1)


(50.7)

Total used

2,947


3,582


(17.7)


(12.0)

Parts and service

10,203


10,499


(2.8)


4.1

Finance, insurance and other, net

3,838


3,881


(1.1)


6.6

Total 

$   24,936


$   25,650


(2.8)


4.4









UNITS SOLD:








Retail new vehicles sold

4,130


3,856


7.1



Retail used vehicles sold

2,067


1,969


5.0



Wholesale used vehicles sold

671


506


32.6



Total used

2,738


2,475


10.6











AVERAGE RETAIL SALES PRICE:








New vehicle retail

$   33,023


$   34,147


(3.3)


3.8

Used vehicle retail

$   21,994


$   21,915


0.4


7.6









GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$     1,924


$     1,994


(3.5)


4.0

Used vehicle retail sales

1,321


1,589


(16.9)


(10.9)

Used vehicle wholesale sales

323


895


(63.9)


(62.8)

Total used

1,076


1,447


(25.6)


(20.5)

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

$        619


$        666


(7.1)


0.2









OTHER: 








SG&A expenses

$   22,853


$   23,346


(2.1)


5.2

Adjusted SG&A expenses(2)

$   22,426


$   23,346


(3.9)


3.0

SG&A as % revenues

10.6


11.3





Adjusted SG&A as % revenues (2)

10.4


11.3





SG&A as % gross profit

91.6


91.0





Adjusted SG&A as % gross profit (2)

89.9


91.0





Operating margin %

0.6


0.8





Adjusted operating margin % (2)

0.8


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 June 30,


2018


2017


% Increase/
(Decrease)


Constant Currency (2)

% Increase/ (Decrease)

REVENUES:








New vehicle retail sales

$   1,442,408


$   1,443,260


(0.1)


(0.6)

Used vehicle retail sales

750,430


683,759


9.8


8.8

Used vehicle wholesale sales

79,644


98,887


(19.5)


(21.1)

Total used

830,074


782,646


6.1


5.0

Parts and service

338,212


330,250


2.4


2.0

Finance, insurance and other, net

109,159


105,757


3.2


2.8

Total 

$   2,719,853


$   2,661,913


2.2


1.5









GROSS MARGIN %:








New vehicle retail sales

5.0


5.2





Used vehicle retail sales

6.3


6.6





Used vehicle wholesale sales

0.9


(0.2)





Total used

5.7


5.7





Parts and service

54.4


53.9





Finance, insurance and other, net

100.0


100.0





Total

15.2


15.1













GROSS PROFIT:








New vehicle retail sales

$        72,065


$        74,654


(3.5)


(3.8)

Used vehicle retail sales

46,968


44,822


4.8


4.0

Used vehicle wholesale sales

699


(240)


391.3


413.1

Total used

47,667


44,582


6.9


6.2

Parts and service

183,823


178,121


3.2


2.7

Finance, insurance and other, net

109,159


105,757


3.2


2.8

Total 

$      412,714


$      403,114


2.4


1.9









UNITS SOLD:








Retail new vehicles sold

40,267


40,722


(1.1)



Retail used vehicles sold

34,965


31,915


9.6



Wholesale used vehicles sold

11,934


14,022


(14.9)



Total used

46,899


45,937


2.1











AVERAGE RETAIL SALES PRICE:








New vehicle retail

$        35,821


$        35,442


1.1


0.6

Used vehicle retail

$        21,462


$        21,424


0.2


(0.7)









GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$          1,790


$          1,833


(2.3)


(2.7)

Used vehicle retail sales

1,343


1,404


(4.3)


(5.1)

Used vehicle wholesale sales

59


(17)


447.1


467.9

Total used

1,016


971


4.6


4.0

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

$          1,451


$          1,456


(0.3)


(0.7)









OTHER: 








SG&A expenses

$      306,432


$      296,677


3.3


2.8

Adjusted SG&A expenses(2)

$      298,193


$      295,746


0.8


0.3

SG&A as % revenues

11.3


11.1





Adjusted SG&A as % revenues (2)

11.0


11.1





SG&A as % gross profit

74.2


73.6





Adjusted SG&A as % gross profit (2)

72.3


73.4





Operating margin %

3.2


3.5





Adjusted operating margin % (2)

3.6


3.5














Six Months Ended June 30,


2018


2017


% Increase/
(Decrease)


Constant Currency (2)
% Increase/ (Decrease)

REVENUES:








New vehicle retail sales

$   2,849,922


$   2,776,299


2.7


1.4

Used vehicle retail sales

1,474,594


1,342,311


9.9


8.2

Used vehicle wholesale sales

172,338


202,933


(15.1)


(17.8)

Total used

1,646,932


1,545,244


6.6


4.8

Parts and service

671,699


648,953


3.5


2.7

Finance, insurance and other, net

215,818


201,911


6.9


6.1

Total 

$   5,384,371


$   5,172,407


4.1


2.7









GROSS MARGIN %:








New vehicle retail sales

5.0


5.2





Used vehicle retail sales

6.0


6.7





Used vehicle wholesale sales

1.3


(0.1)





Total used

5.5


5.8





Parts and service

53.8


54.0





Finance, insurance and other, net

100.0


100.0





Total

15.0


15.2













GROSS PROFIT:








New vehicle retail sales

$      142,501


$      143,678


(0.8)


(2.0)

Used vehicle retail sales

88,119


89,727


(1.8)


(3.0)

Used vehicle wholesale sales

2,225


(121)


1,938.8


1979.1

Total used

90,344


89,606


0.8


(0.3)

Parts and service

361,610


350,234


3.2


2.3

Finance, insurance and other, net

215,818


201,911


6.9


6.1

Total 

$      810,273


$      785,429


3.2


2.2









UNITS SOLD:








Retail new vehicles sold

78,496


78,800


(0.4)



Retail used vehicles sold

68,758


63,403


8.4



Wholesale used vehicles sold

25,847


28,414


(9.0)



Total used

94,605


91,817


3.0











AVERAGE RETAIL SALES PRICE:








New vehicle retail

$        36,307


$        35,232


3.1


1.8

Used vehicle retail

$        21,446


$        21,171


1.3


(0.2)









GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$          1,815


$          1,823


(0.4)


(1.7)

Used vehicle retail sales

1,282


1,415


(9.4)


(10.5)

Used vehicle wholesale sales

86


(4)


2,250.0


2165.7

Total used

955


976


(2.2)


(3.3)

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

$          1,466


$          1,420


3.2


2.5









OTHER: 








SG&A expenses

$      612,632


$      584,973


4.7


3.7

Adjusted SG&A expenses(2)

$      604,393


$      585,875


3.2


2.1

SG&A as % revenues

11.4


11.3





Adjusted SG&A as % revenues (2)

11.2


11.3





SG&A as % gross profit

75.6


74.5





Adjusted SG&A as % gross profit (2)

74.6


74.6





Operating margin %

3.0


3.3





Adjusted operating margin % (2)

3.3


3.3












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

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

 

Group 1 Automotive, Inc.

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

(Unaudited)

 (Dollars in thousands, except per share amounts)



Three Months Ended June 30,



2018


2017


% Increase/
(Decrease)

SG&A RECONCILIATION:







As reported

$ 234,279


$ 243,844


(3.9)


  Pre-tax adjustments:







 Catastrophic events 

(5,812)


(643)




 Gain on real estate and dealership transactions 

20,119


-




 Legal settlements 

(2,000)


-




Adjusted SG&A (1)

$ 246,586


$ 243,201


1.4

SG&A AS % REVENUES:







Unadjusted

10.8


11.5




Adjusted (1)

11.4


11.5



SG&A AS % GROSS PROFIT:







Unadjusted

66.8


71.6




Adjusted (1)

70.3


71.4



OPERATING MARGIN %:







Unadjusted

4.6


4.0




Adjusted (1), (2)

4.2


4.0



PRETAX MARGIN %:







Unadjusted

3.2


2.6




Adjusted (1), (2)

2.8


2.7



SAME STORE SG&A RECONCILIATION:







As reported

$ 249,033


$ 242,559


2.7


  Pre-tax adjustments:







 Catastrophic events 

(5,812)


(643)




 Legal settlements 

(2,000)


-




Adjusted Same Store SG&A (1)

$ 241,221


$ 241,916


(0.3)

SAME STORE SG&A AS % REVENUES:







Unadjusted

11.7


11.5




Adjusted (1)

11.4


11.4



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

72.5


71.6




Adjusted (1)

70.3


71.4



SAME STORE OPERATING MARGIN %:







Unadjusted

3.7


4.0




Adjusted (1), (3)

4.2


4.0












Six Months Ended June 30,



2018


2017


% Increase/
(Decrease)

SG&A RECONCILIATION:







As reported

$ 487,220


$ 480,117


1.5


  Pre-tax adjustments:







 Catastrophic events 

(5,812)


(643)




 Gain on real estate and dealership transactions 

20,119


-




 Legal settlements 

(2,000)


1,833




Adjusted SG&A (1)

$ 499,527


$ 481,307


3.8

SG&A AS % REVENUES:







Unadjusted

11.4


11.7




Adjusted (1)

11.7


11.8



SG&A AS % OF GROSS PROFIT:







Unadjusted

71.0


72.6




Adjusted (1)

72.8


72.8



OPERATING MARGIN %:







 Unadjusted 

4.0


3.8




Adjusted (1), (2)

3.8


3.8



PRETAX MARGIN %:







Unadjusted

2.6


2.5




Adjusted (1), (2)

2.4


2.5



SAME STORE SG&A RECONCILIATION:







As reported

$ 496,645


$ 478,610


3.8


  Pre-tax adjustments:







 Catastrophic events 

(5,812)


(643)




 Legal settlements 

(2,000)


1,833




Adjusted Same Store SG&A (1)

$ 488,833


$ 479,800


1.9

SAME STORE SG&A AS % REVENUES:







Unadjusted

11.9


11.7




Adjusted (1)

11.7


11.7



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

73.8


72.6




Adjusted (1)

72.6


72.8



SAME STORE OPERATING MARGIN %:







Unadjusted

3.5


3.9




Adjusted (1), (3)

3.8


3.8










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

(2)Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $4,268 for the three and six months ended June 30, 2018.

(3)Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $4,022 for the three and six months ended June 30, 2018.

 

Group 1 Automotive, Inc.

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

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended June 30,



2018


2017


% Increase/

(Decrease)

SG&A RECONCILIATION:







As reported

$   62,258


$ 42,456


46.6


  Pre-tax adjustments:







 Acquisition costs 

-


(288)




Adjusted SG&A (1)

$   62,258


$ 42,168


47.6

SG&A AS % REVENUES:







Unadjusted

9.3


9.7




Adjusted (1)

9.3


9.6



SG&A AS % GROSS PROFIT:







Unadjusted

83.2


83.4




Adjusted (1)

83.2


82.8



OPERATING MARGIN %:







Unadjusted

1.4


1.5




Adjusted (1)

1.4


1.6



PRETAX MARGIN %:







Unadjusted

0.9


1.1




Adjusted (1)

0.9


1.2



SAME STORE SG&A RECONCILIATION:







As reported

$   46,319


$ 42,087


10.1


  Pre-tax adjustments:







 Acquisition costs 

-


(288)




Adjusted Same Store SG&A (1)

$   46,319


$ 41,799


10.8

SAME STORE SG&A AS % REVENUES:







Unadjusted

9.4


9.7




Adjusted (1)

9.4


9.6



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

81.1


83.0




Adjusted (1)

81.1


82.5



SAME STORE OPERATING MARGIN %:







Unadjusted

1.7


1.6




Adjusted (1)

1.7


1.6












 Six Months Ended June 30



2018


2017


% Increase/
(Decrease)

SG&A RECONCILIATION:







As reported

$ 121,854


$ 84,080


44.9


  Pre-tax adjustments:







 Acquisition costs 

-


(288)




Adjusted SG&A (1)

$ 121,854


$ 83,792


45.4

SG&A AS % REVENUES:







Unadjusted

9.2


9.5




Adjusted (1)

9.2


9.4



SG&A AS % OF GROSS PROFIT:







Unadjusted

83.3


83.1




Adjusted (1)

83.3


82.8



OPERATING MARGIN %:







Unadjusted

1.4


1.5




Adjusted (1)

1.4


1.6



PRETAX MARGIN %:







Unadjusted

0.9


1.2




Adjusted (1)

0.9


1.2



SAME STORE SG&A RECONCILIATION:







As reported

$   93,134


$ 83,017


12.2


  Pre-tax adjustments:







 Acquisition costs 

-


(288)




Adjusted Same Store SG&A (1)

$   93,134


$ 82,729


12.6

SAME STORE SG&A AS % REVENUES:







Unadjusted

9.3


9.4




Adjusted (1)

9.3


9.4



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

82.8


82.5




Adjusted (1)

82.8


82.2



SAME STORE OPERATING MARGIN %:







Unadjusted

1.5


1.6




Adjusted (1)

1.5


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 June 30,



2018


2017


% Increase/
(Decrease)

SG&A RECONCILIATION:







As reported

$ 11,555


$ 12,268


(5.8)


  Pre-tax adjustments:







 Legal settlements 

(550)


-




Adjusted SG&A (1)

$ 11,005


$ 12,268


(10.3)

SG&A AS % REVENUES:







Unadjusted

10.6


11.0




Adjusted (1)

10.1


11.0



SG&A AS % GROSS PROFIT:







Unadjusted

91.1


91.0




Adjusted (1)

86.7


91.0



OPERATING MARGIN %:







Unadjusted

0.6


0.8




Adjusted (1)

1.1


0.8



PRETAX MARGIN %:







Unadjusted

0.2


0.6




Adjusted (1)

0.7


0.6



SAME STORE SG&A RECONCILIATION:







As reported

$ 11,080


$ 12,031


(7.9)


  Pre-tax adjustments:







 Legal settlements 

(427)


-




Adjusted Same Store SG&A (1)

$ 10,653


$ 12,031


(11.5)

SAME STORE SG&A AS % REVENUES:







Unadjusted

10.6


10.8




Adjusted (1)

10.2


10.8



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

90.0


89.4




Adjusted (1)

86.6


89.4



SAME STORE OPERATING MARGIN %:







Unadjusted

0.7


1.0




Adjusted (1)

1.1


1.0












 Six Months Ended June 30



2018


2017


% Increase/
(Decrease)

SG&A RECONCILIATION:







As reported

$ 23,365


$ 24,150


(3.3)


  Pre-tax adjustments:







 Legal settlements 

(550)


-




Adjusted SG&A (1)

$ 22,815


$ 24,150


(5.5)

SG&A AS % REVENUES:







Unadjusted

10.6


11.4




Adjusted (1)

10.4


11.4



SG&A AS % OF GROSS PROFIT:







Unadjusted

92.3


92.5




Adjusted (1)

90.1


92.5



OPERATING MARGIN %:







Unadjusted

0.5


0.6




Adjusted (1)

0.7


0.6



PRETAX MARGIN %:







Unadjusted

0.1


0.4




Adjusted (1)

0.3


0.4



SAME STORE SG&A RECONCILIATION:







As reported

$ 22,853


$ 23,346


(2.1)


  Pre-tax adjustments:







 Legal settlements 

(427)


-




Adjusted Same Store SG&A (1)

$ 22,426


$ 23,346


(3.9)








SAME STORE SG&A AS % REVENUES:







Unadjusted

10.6


11.3




Adjusted (1)

10.4


11.3



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

91.6


91.0




Adjusted (1)

89.9


91.0



SAME STORE OPERATING MARGIN %:







Unadjusted

0.6


0.8




Adjusted (1)

0.8


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 June 30,



2018


2017


% Increase/
(Decrease)








NET INCOME RECONCILIATION:







As reported







  Pretax Net Income

$        75,188


$        61,690




  Income Tax Provision

(18,725)


(22,557)




     Net Income  

$        56,463


$        39,133


44.3


       Effective Tax Rate 

24.9%


36.6%




 Adjustments:  







 Catastrophic events  







 Pre-tax 

$          5,812


$             643




 Tax impact 

(1,444)


(250)




 Gain on real estate and dealership transactions 







 Pre-tax 

(20,119)


-




 Tax impact 

4,917


-




 Acquisition costs  







 Pre-tax 

-


288




 Tax impact 

-


-




 Legal settlements 







 Pre-tax 

2,550


-




 Tax impact 

(568)


-




 Non-cash asset impairment 







 Pre-tax  

4,268


-




 Tax impact 

(1,089)


-




 Adjusted 







   Pretax Net Income 

$        67,699


$        62,621




   Income Tax Provision 

(16,909)


(22,807)




  Adjusted net income (1)

$        50,790


$        39,814


27.6


       Effective Tax Rate 

25.0%


36.42%



ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION:







Adjusted net income (1)

$        50,790


$        39,814


27.6


Less: Adjusted earnings allocated to participating securities

1,722


1,413


21.9


Adjusted net income available to diluted common shares (1)

$        49,068


$        38,401


27.8

 DILUTED (LOSS) INCOME PER COMMON SHARE RECONCILIATION: 







As reported

$            2.72


$            1.84


47.8


  After-tax adjustments:







 Catastrophic events  

0.21


0.02




 Gain on real estate and dealership transactions 

(0.73)


-




 Acquisition costs including related tax impact  

-


0.01




 Legal settlements  

0.10


-




 Non-cash asset impairment 

0.15


-




Adjusted diluted income per share (1)

$            2.45


$            1.87


31.0

SG&A RECONCILIATION:







As reported

$      308,092


$      298,568


3.2


  Pre-tax adjustments:







 Catastrophic events 

(5,812)


(643)




 Gain on real estate and dealership transactions 

20,119


-




 Acquisition costs 

-


(288)




 Legal settlements 

(2,550)


-




Adjusted SG&A (1)

$      319,849


$      297,637


7.5

SG&A AS % REVENUES:







Unadjusted

10.5


11.2




Adjusted (1)

10.9


11.1



SG&A AS % GROSS PROFIT:







Unadjusted

70.3


73.7




Adjusted (1)

73.0


73.5



OPERATING MARGIN %:







Unadjusted

3.7


3.5




Adjusted (1), (2)

3.5


3.5



PRETAX MARGIN %:







Unadjusted

2.6


2.3




Adjusted (1), (2)

2.3


2.3



SAME STORE SG&A RECONCILIATION:







As reported

$      306,432


$      296,677


3.3


  Pre-tax adjustments:







 Catastrophic events 

(5,812)


(643)




 Acquisition costs 

-


(288)




 Legal settlements 

(2,427)


-




Adjusted Same Store SG&A (1)

$      298,193


$      295,746


0.8

SAME STORE SG&A AS % REVENUES:







Unadjusted

11.3


11.1




Adjusted (1)

11.0


11.1



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

74.2


73.6




Adjusted (1)

72.3


73.4



SAME STORE OPERATING MARGIN %:







Unadjusted

3.2


3.5




Adjusted (1), (3)

3.6


3.5












 Six Months Ended June 30, 



2018


2017


% Increase/
(Decrease)

NET INCOME RECONCILIATION:







As reported







  Pretax Net Income

$      121,355


$      112,886




   Income Tax Provision 

(29,078)


(39,814)




     Net Income  

$        92,277


$        73,072


26.3


       Effective Tax Rate 

24.0%


35.3%




 Adjustments: 







 Catastrophic events  







 Pre-tax 

$          5,812


$             643




 Tax impact 

(1,444)


(250)




 Gain on real estate and dealership transactions 







 Pre-tax 

(20,119)


-




 Tax impact 

4,917


-




 Acquisition costs  







 Pre-tax 

-


288




 Tax impact 

-


-




 Legal settlements 







 Pre-tax 

2,550


(1,833)




 Tax impact 

(568)


696




 Non-cash asset impairment 







 Pre-tax  

4,268


-




 Tax impact 

(1,089)


-




 Adjusted 







   Pretax Net Income 

$      113,866


$      111,984




   Income Tax Provision 

(27,262)


(39,368)




Adjusted net income (1)

$        86,604


$        72,616


19.3


      Effective Tax Rate

23.9%


35.2%



 ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION:







Adjusted net income (1)

$        86,604


$        72,616


19.3


 Less: Adjusted earnings allocated to participating securities 

2,930


2,628


11.5


  Adjusted net income available to diluted common shares (1)

$        83,674


$        69,988


19.6

 DILUTED INCOME PER COMMON SHARE RECONCILIATION: 







 As reported 

$            4.42


$            3.42


29.2


   After-tax adjustments: 







 Catastrophic events  

0.21


0.02




 Gain on real estate and dealership transactions 

(0.73)


-




 Acquisition costs including related tax impact  

-


0.01




 Legal settlements  

0.10


(0.05)




 Non-cash asset impairment 

0.15


-




Adjusted diluted income per share (1)

$            4.15


$            3.40


22.1

SG&A RECONCILIATION:







As reported

$      632,439


$      588,347


7.5


  Pre-tax adjustments:







 Catastrophic events 

(5,812)


(643)




 Gain on real estate and dealership transactions 

20,119


-




 Acquisition costs 

-


(288)




 Legal settlements 

(2,550)


1,833




Adjusted SG&A (1)

$      644,196


$      589,249


9.3

SG&A AS % REVENUES:







Unadjusted

10.9


11.3




Adjusted (1)

11.1


11.4



SG&A AS % OF GROSS PROFIT:







Unadjusted

73.7


74.6




Adjusted (1)

75.1


74.7



OPERATING MARGIN %:







Unadjusted

3.2


3.3




Adjusted (1), (2)

3.1


3.3



PRETAX MARGIN %:







Unadjusted

2.1


2.2




Adjusted (1), (2)

2.0


2.2



 SAME STORE SG&A RECONCILIATION: 







As reported

$      612,632


$      584,973


4.7


  Pre-tax adjustments:







 Catastrophic events 

(5,812)


(643)




 Acquisition costs 

-


(288)




 Legal settlements 

(2,427)


1,833




Adjusted Same Store SG&A (1)

$      604,393


$      585,875


3.2

 SAME STORE SG&A AS % REVENUES: 







 Unadjusted 

11.4


11.3




Adjusted (1)

11.2


11.3



 SAME STORE SG&A AS % GROSS PROFIT: 







Unadjusted

75.6


74.5




Adjusted (1)

74.6


74.6



 SAME STORE OPERATING MARGIN %: 







Unadjusted

3.0


3.3




Adjusted (1), (3)

3.3


3.3










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

(2)Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $4,268 for the three and six months ended June 30, 2018.

(3)Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $4,022 for the three and six months ended June 30, 2018.

 

Cision View original content:http://www.prnewswire.com/news-releases/group-1-automotive-announces-second-quarter-2018-financial-results-300686850.html

SOURCE Group 1 Automotive, Inc.