GPI
$60.46
Group 1 Automotive
$.07
.12%
Earnings Details
1st Quarter March 2017
Friday, April 28, 2017 6:07:00 AM
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Summary

Group 1 Automotive Misses

Group 1 Automotive (GPI) reported 1st Quarter March 2017 earnings of $1.53 per share on revenue of $2.5 billion. The consensus earnings estimate was $1.71 per share on revenue of $2.6 billion. The Earnings Whisper number was $1.75 per share. Revenue fell 3.4% 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
$1.53
Earnings Whisper
$1.75
Consensus Estimate
$1.71
Reported Revenue
$2.52 Bil
Revenue Estimate
$2.58 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Group 1 Automotive Reports First Quarter 2017 Financial Results

Group 1 Automotive, Inc. (GPI), ("Group 1" or the "Company"), an international, Fortune 500 automotive retailer, today reported 2017 first quarter net income of $33.9 million, diluted earnings per common share of $1.58, adjusted net income (a non-GAAP measure) of $32.8 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $1.53.

First quarter 2017 adjusted net income and diluted earnings per share exclude a non-core benefit of approximately $1.1 million after-tax, or $0.05 per share, related to a settlement with an Original Equipment Manufacturer (OEM). Reconciliations of non-GAAP financial measures are included in the attached financial tables.

"Although we had another strong performance in our U.S. new vehicle margins, a record quarter in the U.K., and a profitable quarter in Brazil, these factors were not enough to offset extreme weakness in vehicle sales in our energy price impacted markets. Combined new and used sales dropped 11 percent in Texas and Oklahoma, with the new vehicle industry declining 16 percent for the quarter in our largest single market of Houston. With a decrease of 13 percent in new vehicle sales at our Houston stores, we outperformed the local market, but we still need to make further adjustments to our businesses in the energy price impacted markets," said Earl J. Hesterberg, Group 1’s president and chief executive officer. "As for our overseas markets, our U.K. operations had another record quarter, with revenue growth across all business segments and gross profit up double digits on a constant currency basis. And finally, in the face of continued pressure on Brazil’s new vehicle industry during the quarter, we are also delighted to have achieved profitability in our Brazil Region by growing gross profit 13 percent on a Same Store constant currency basis reflecting tremendous performance in used vehicles, parts and service, and F&I, and by significantly leveraging our costs."

Consolidated Results for First Quarter 2017 (year-over-year comparable basis)

For ease of comparison, we have included constant currency metrics (a non-GAAP measure) both below (shown in parenthesis) and in the financial tables that follow:

Total revenue decreased 3.4 percent ((1.5) percent) to $2.5 billion; total gross profit decreased 1.4 percent ((0.1) percent) to $383.5 million.

New vehicle revenues decreased 5.2 percent ((3.1) percent) on a 6.1 percent decrease in unit sales. New vehicle gross profit decreased 3.5 percent ((1.3) percent) to $69.2 million, as improved new vehicle margins partially offset the volume decline. U.S. Same Store new vehicle margins were up 5.1 percent or $91 per unit to $1,862.

Retail used vehicle revenues decreased 4.0 percent ((2.0) percent) on a 3.7 percent decrease in unit sales. Retail used vehicle gross profit decreased 8.5 percent ((7.5) percent) to $45.0 million reflecting the impact of lower margins, down $74 per unit, in combination with the volume decline.

Parts and service gross profit increased 3.5 percent (4.9 percent) on revenue growth of 3.6 percent (4.7 percent). Same Store parts and service gross profit increased 3.4 percent (4.4 percent) on revenue growth of 3.8 percent (4.6 percent).

Same Store Finance and Insurance (F&I) gross profit per retail unit (PRU) increased 2.0 percent (2.8 percent) to $1,410 per retail unit. U.S. F&I gross profit per unit increased $73 to a first quarter record of $1,637.

Selling, General and Administrative (SG&A) expenses as a percent of gross profit increased 10 basis points to 75.6 percent. Adjusted SG&A expenses as a percent of gross profit (a non-GAAP measure) increased 120 basis points to 76.0 percent.

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

United States: The Company’s U.S. operations accounted for 78.1 percent of total revenues and 83.6 percent of total gross profit. U.S. revenues were $2.0 billion, a decrease of 5.5 percent. The revenue decrease reflects 10.7 percent and 7.1 percent decreases in retail new and used vehicle unit sales, respectively. The vast majority of the sales decline came from the Company’s oil-impacted markets of Texas and Oklahoma. Gross profit decreased 3.6 percent.

United Kingdom: The Company’s U.K. operations accounted for 17.9 percent of total revenues and 13.1 percent of total gross profit. Despite a 14 percent weakening in the pound, total revenue grew 4.3 percent (20.5 percent) to $450.3 million, and gross profit increased 7.6 percent (24.3 percent). Revenue growth was primarily driven by 22.6 percent and 22.1 percent increases in new and used vehicle retail unit sales, respectively.

Brazil: The Company’s Brazilian operations accounted for 4.0 percent of total revenues and 3.3 percent of total gross profit. Despite continued weakness in Brazil’s new vehicle industry volumes, which contributed to decreased Same Store total revenue of 13.4 percent on a constant currency basis, gross profit increased 13.0 percent, reflecting strong growth in Same Store total used vehicles gross profit (up almost 180 percent), and a 17.6 percent increase in Same Store parts and sales gross profit. In addition, Same Store F&I gross profit PRU increased 64.5 percent on a constant currency basis. The increase in gross profit, coupled with significantly improved cost leverage, allowed the region to achieve profitability in the quarter.

Corporate Development

In January 2017, as previously announced, the Company acquired a BMW motorcycle franchise in Brazil, which is expected to generate approximately $5 million in annual revenues. In March 2017, the Company opened Think Ford Reading, an add point in the U.K., which is contiguous to our existing Ford market. This expands the Company’s U.K. Ford network to seven dealerships. In April 2017, the Company also opened Cedar Park Nissan, an add point in Austin, Texas. This addition increases Group 1’s U.S. Nissan network to nine dealerships. These add points are expected to generate approximately $60 million in annual revenues.

In February 2017, as previously announced, the Company disposed of two Nissan dealerships in Brazil. These stores generated approximately $25 million in trailing-twelve-month revenues.

Share Repurchase Authorization

As of April 28, 2017, $22.4 million remains available under the Company’s prior common stock share repurchase authorization. Purchases may be made from time to time in the open market or in privately negotiated transactions, based on market conditions, legal requirements and other corporate considerations and subject to Board approval and covenant restrictions.

First Quarter 2017 Earnings Conference Call Details

Group 1’s senior management will host a conference call today at 9 a.m. ET to discuss the first quarter financial results and the Company’s outlook and strategy.

The conference call will be simulcast live on the Internet at www.group1auto.com. 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: 7461950

A telephonic replay will be available following the call through May 5, 2017 by dialing:

Domestic:
1-877-344-7529
International: 1-412-317-0088
Replay ID:
10105151

About Group 1 Automotive, Inc. Group 1 owns and operates 159 automotive dealerships, 210 franchises, and 45 collision centers in the United States, the United Kingdom and Brazil that offer 30 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service contracts; provides automotive maintenance and repair services; and sells vehicle parts.

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

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

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

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

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

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

Media contacts: Pete DeLongchamps V.P. Manufacturer Relations, Financial Services and Public Affairs Group 1 Automotive, Inc. 713-647-5770 | pdelongchamps@group1auto.com

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

Group 1 Automotive, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended March 31,
2017
2016
% Increase/
(Decrease)
REVENUES:
New vehicle retail sales
$ 1,337,213
$ 1,409,851
(5.2)
Used vehicle retail sales
660,927
688,171
(4.0)
Used vehicle wholesale sales
104,157
101,592
2.5
Parts and service
319,698
308,592
3.6
Finance, insurance and other, net
96,834
100,149
(3.3)
Total revenues
2,518,829
2,608,355
(3.4)
COST OF SALES:
New vehicle retail sales
1,267,986
1,338,124
(5.2)
Used vehicle retail sales
615,922
638,971
(3.6)
Used vehicle wholesale sales
104,057
100,143
3.9
Parts and service
147,342
142,016
3.8
Total cost of sales
2,135,307
2,219,254
(3.8)
GROSS PROFIT
383,522
389,101
(1.4)
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
289,779
293,664
(1.3)
DEPRECIATION AND AMORTIZATION EXPENSE
13,606
12,464
9.2
ASSET IMPAIRMENTS
-
932
(100.0)
OPERATING INCOME
80,137
82,041
(2.3)
OTHER EXPENSE:
Floorplan interest expense
(11,942)
(11,010)
8.5
Other interest expense, net
(16,999)
(16,929)
0.4
INCOME BEFORE INCOME TAXES
51,196
54,102
(5.4)
PROVISION FOR INCOME TAXES
(17,257)
(19,811)
(12.9)
NET INCOME
$
33,939
$
34,291
(1.0)
Less: Earnings allocated to participating securities $
1,250
$
1,348
(7.3)
Earnings available to diluted common shares
$
32,689
$
32,943
(0.8)
DILUTED EARNINGS PER SHARE
$
1.58
$
1.47
7.5
Weighted average dilutive common shares outstanding
20,698
22,453
(7.8)
Weighted average participating securities
818
921
(11.2)
Total weighted average shares outstanding
21,516
23,374
(7.9)
Group 1 Automotive, Inc.
Consolidated Balance Sheets
(Dollars in thousands)
March 31,
December 31,
% Increase/
2017
2016
(Decrease)
ASSETS:
(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents
$
33,770
$
20,992
60.9
Contracts in transit and vehicle receivables, net
213,772
269,508
(20.7)
Accounts and notes receivable, net
152,794
173,364
(11.9)
Inventories, net
1,729,525
1,651,815
4.7
Prepaid expenses and other current assets
23,216
34,908
(33.5)
Total current assets
2,153,077
2,150,587
0.1
PROPERTY AND EQUIPMENT, net
1,152,395
1,125,883
2.4
GOODWILL AND INTANGIBLE FRANCHISE RIGHTS
1,162,351
1,161,639
0.1
OTHER ASSETS
21,540
23,794
(9.5)
Total assets
$ 4,489,363
$ 4,461,903
0.6
LIABILITIES AND STOCKHOLDERS’ EQUITY:
CURRENT LIABILITIES:
Floorplan notes payable - credit facility and other
$ 1,170,383
$ 1,136,654
3.0
Offset account related to floorplan notes payable - credit facility
(97,149)
(59,626)
62.9
Floorplan notes payable - manufacturer affiliates
392,388
392,661
(0.1)
Offset account related to floorplan notes payable - manufacturer affiliates
(26,750)
(25,500)
4.9
Current maturities of long-term debt and short-term financing
46,340
72,419
(36.0)
Current liabilities from interest rate risk management activities
2,597
3,941
(34.1)
Accounts payable
347,746
356,099
(2.3)
Accrued expenses
185,720
176,469
5.2
Total current liabilities
2,021,275
2,053,117
(1.6)
5.00% SENIOR NOTES (principal of $550,000 at March 31, 2017 and December 31, 2016, respectively)
540,858
540,465
0.1
5.25% SENIOR NOTES (principal of $300,000 at March 31, 2017 and December 31, 2016, respectively)
295,729
295,591
0.0
REAL ESTATE RELATED AND OTHER LONG-TERM DEBT, net of current maturities
345,775
333,326
3.7
CAPITAL LEASE OBLIGATIONS RELATED TO REAL ESTATE, net of current maturities
42,356
43,427
(2.5)
DEFERRED INCOME TAXES
168,772
161,502
4.5
LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES
17,762
20,470
(13.2)
OTHER LIABILITIES
87,876
83,805
4.9
STOCKHOLDERS’ EQUITY:
Common stock
256
257
(0.4)
Additional paid-in capital
285,455
290,899
(1.9)
Retained earnings
1,082,101
1,053,301
2.7
Accumulated other comprehensive loss
(140,149)
(146,944)
(4.6)
Treasury stock
(258,703)
(267,313)
(3.2)
Total stockholders’ equity
968,960
930,200
4.2
Total liabilities and stockholders’ equity
$ 4,489,363
$ 4,461,903
0.6
Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
Three Months Ended
March 31,
2017 (%)
2016 (%)
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
Region
Geographic Market
East
Georgia
4.5
3.8
Massachusetts
4.2
5.0
Florida
2.5
2.4
New Hampshire
1.8
1.7
New Jersey
1.6
1.6
Louisiana
1.6
1.4
Mississippi
1.5
1.5
South Carolina
1.3
1.4
Alabama
1.2
0.8
Maryland
0.4
0.4
20.6
20.0
West
Texas
34.8
37.0
California
7.9
9.0
Oklahoma
6.4
7.2
Kansas
1.6
1.8
Louisiana
0.5
0.6
51.2
55.6
International
United Kingdom
23.6
18.0
Brazil
4.6
6.4
100.0
100.0
NEW VEHICLE UNIT SALES BRAND MIX:
Toyota/Scion/Lexus
23.2
23.8
BMW/MINI
14.3
13.1
Ford/Lincoln
12.8
11.5
Volkswagen/Audi/Porsche
12.5
10.6
Honda/Acura
9.1
10.5
Nissan
8.2
7.9
Chevrolet/GMC/Buick/Cadillac
6.7
7.8
Mercedes-Benz/smart/Sprinter
3.9
3.7
Chrysler/Dodge/Jeep/RAM
3.7
4.0
Hyundai/Kia
3.4
4.7
Other
2.2
2.4
100.0
100.0
Group 1 Automotive, Inc.
Additional Information - U.S.
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended March 31,
2017
2016
% Increase/
(Decrease)
REVENUES:
New vehicle retail sales
$ 1,018,249
$ 1,100,393
(7.5)
Used vehicle retail sales
521,947
558,764
(6.6)
Used vehicle wholesale sales
70,545
68,873
2.4
Total used
592,492
627,637
(5.6)
Parts and service
271,159
263,458
2.9
Finance, insurance and other, net
85,819
90,145
(4.8)
Total
$ 1,967,719
$ 2,081,633
(5.5)
GROSS MARGIN %:
New vehicle retail sales
5.0
4.9
Used vehicle retail sales
7.3
7.8
Used vehicle wholesale sales
(0.5)
1.2
Total used
6.3
7.1
Parts and service
53.8
54.7
Finance, insurance and other, net
100.0
100.0
Total
16.3
16.0
GROSS PROFIT:
New vehicle retail sales
$
51,209
$
54,146
(5.4)
Used vehicle retail sales
37,932
43,455
(12.7)
Used vehicle wholesale sales
(362)
844
(142.9)
Total used
37,570
44,299
(15.2)
Parts and service
145,998
144,120
1.3
Finance, insurance and other, net
85,819
90,145
(4.8)
Total
$
320,596
$
332,710
(3.6)
UNITS SOLD:
Retail new vehicles sold
27,498
30,801
(10.7)
Retail used vehicles sold
24,929
26,831
(7.1)
Wholesale used vehicles sold
9,981
10,413
(4.1)
Total used
34,910
37,244
(6.3)
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
37,030
$
35,726
3.7
Used vehicle retail
$
20,937
$
20,825
0.5
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,862
$
1,758
5.9
Used vehicle retail sales
1,522
1,620
(6.0)
Used vehicle wholesale sales
(36)
81
(144.4)
Total used
1,076
1,189
(9.5)
Finance, insurance and other, net (per retail unit)
$
1,637
$
1,564
4.7
OTHER:
SG&A expenses
$
236,273
$
245,838
(3.9)
Adjusted SG&A expenses(1)
$
238,106
$
244,086
(2.4)
SG&A as % revenues
12.0
11.8
Adjusted SG&A as % revenues (1)
12.1
11.7
SG&A as % gross profit
73.7
73.9
Adjusted SG&A as % gross profit (1)
74.3
73.4
Operating margin %
3.7
3.6
Adjusted operating margin % (1)
3.6
3.7
Pretax margin %
2.3
2.4
Adjusted pretax margin % (1)
2.2
2.5
INTEREST EXPENSE:
Floorplan interest expense
$
(10,878)
$
(10,049)
8.2
Floorplan assistance
10,284
11,251
(8.6)
Net floorplan (expense) income
$
(594)
$
1,202
(149.4)
Other interest expense, net
$
(16,272)
$
(15,513)
4.9
(1) See the section of this release entitled "Non-GAAP Financial Measures " and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.
Group 1 Automotive, Inc.
Additional Information - U.K.
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended March 31,
2017
2016
% Increase/
Constant Currency(1)
(Decrease)
% Increase/ (Decrease)
REVENUES:
New vehicle retail sales
$ 258,640
$ 246,536
4.9
21.3
Used vehicle retail sales
115,369
110,117
4.8
21.1
Used vehicle wholesale sales
30,509
32,032
(4.8)
10.1
Total used
145,878
142,149
2.6
18.6
Parts and service
36,781
34,549
6.5
23.0
Finance, insurance and other, net
9,028
8,662
4.2
20.5
Total
$ 450,327
$ 431,896
4.3
20.5
GROSS MARGIN %:
New vehicle retail sales
5.6
5.6
Used vehicle retail sales
4.7
4.7
Used vehicle wholesale sales
0.7
1.8
Total used
3.9
4.1
Parts and service
57.7
53.4
Finance, insurance and other, net
100.0
100.0
Total
11.2
10.8
GROSS PROFIT:
New vehicle retail sales
$
14,401
$
13,854
3.9
20.2
Used vehicle retail sales
5,429
5,210
4.2
20.5
Used vehicle wholesale sales
211
572
(63.1)
(57.9)
Total used
5,640
5,782
(2.5)
12.7
Parts and service
21,225
18,448
15.1
33.0
Finance, insurance and other, net
9,028
8,662
4.2
20.5
Total
$
50,294
$
46,746
7.6
24.3
UNITS SOLD:
Retail new vehicles sold
9,018
7,358
22.6
Retail used vehicles sold
5,611
4,595
22.1
Wholesale used vehicles sold
4,169
3,642
14.5
Total used
9,780
8,237
18.7
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
28,680
$
33,506
(14.4)
(1.1)
Used vehicle retail
$
20,561
$
23,965
(14.2)
(0.8)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,597
$
1,883
(15.2)
(2.0)
Used vehicle retail sales
968
1,134
(14.6)
(1.3)
Used vehicle wholesale sales
51
157
(67.5)
(63.2)
Total used
577
702
(17.8)
(5.1)
Finance, insurance and other, net (per retail unit)
$
617
$
725
(14.9)
(1.6)
OTHER:
SG&A expenses
$
41,624
$
37,436
11.2
28.5
Adjusted SG&A expenses(1)
$
41,624
$
36,875
12.9
30.4
SG&A as % revenues
9.2
8.7
Adjusted SG&A as % revenues (1)
9.2
8.5
SG&A as % gross profit
82.8
80.1
Adjusted SG&A as % gross profit (1)
82.8
78.9
Operating margin %
1.6
1.8
Adjusted operating margin % (1)
1.6
1.9
Pretax margin %
1.2
1.3
Adjusted pretax margin % (1)
1.2
1.4
INTEREST EXPENSE:
Floorplan interest expense
$
(1,034)
$
(920)
12.4
29.7
Floorplan assistance
229
263
(12.9)
0.5
Net floorplan expense
$
(805)
$
(657)
22.5
41.5
Other interest expense, net
$
(581)
$
(1,282)
(54.7)
(47.9)
(1) See the section of this release entitled "Non-GAAP Financial Measures " and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.
Group 1 Automotive, Inc.
Additional Information - Brazil
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended March 31,
2017
2016
% Increase/
Constant Currency (1)
(Decrease)
% Increase/ (Decrease)
REVENUES:
New vehicle retail sales
$
60,324
$ 62,922
(4.1)
(22.5)
Used vehicle retail sales
23,611
19,290
22.4
(1.3)
Used vehicle wholesale sales
3,103
687
351.7
263.1
Total used
26,714
19,977
33.7
7.8
Parts and service
11,758
10,585
11.1
(10.3)
Finance, insurance and other, net
1,987
1,342
48.1
19.1
Total
$ 100,783
$ 94,826
6.3
(14.2)
GROSS MARGIN %:
New vehicle retail sales
6.0
5.9
Used vehicle retail sales
7.0
2.8
Used vehicle wholesale sales
8.1
4.8
Total used
7.1
2.8
Parts and service
43.7
37.9
Finance, insurance and other, net
100.0
100.0
Total
12.5
10.2
GROSS PROFIT:
New vehicle retail sales
$
3,617
$
3,727
(3.0)
(21.9)
Used vehicle retail sales
1,644
535
207.3
147.2
Used vehicle wholesale sales
251
33
660.6
514.3
Total used
1,895
568
233.6
168.3
Parts and service
5,133
4,008
28.1
3.3
Finance, insurance and other, net
1,987
1,342
48.1
19.1
Total
$
12,632
$
9,645
31.0
5.5
UNITS SOLD:
Retail new vehicles sold
1,774
2,622
(32.3)
Retail used vehicles sold
1,026
1,365
(24.8)
Wholesale used vehicles sold
379
311
21.9
Total used
1,405
1,676
(16.2)
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
34,005
$ 23,998
41.7
14.5
Used vehicle retail
$
23,013
$ 14,132
62.8
31.3
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
2,039
$
1,421
43.5
15.5
Used vehicle retail sales
1,602
392
308.7
228.9
Used vehicle wholesale sales
662
106
524.5
404.1
Total used
1,349
339
297.9
220.0
Finance, insurance and other, net (per retail unit)
$
710
$
337
110.7
69.7
OTHER:
SG&A expenses
$
11,882
$ 10,390
14.4
(7.9)
Adjusted SG&A expenses(1)
$
11,882
$ 10,019
18.6
(4.5)
SG&A as % revenues
11.8
11.0
Adjusted SG&A as % revenues (1)
11.8
10.6
SG&A as % gross profit
94.1
107.7
Adjusted SG&A as % gross profit (1)
94.1
103.9
Operating margin %
0.4
(1.5)
Adjusted operating margin % (1)
0.4
(0.7)
Pretax margin %
0.2
(1.7)
Adjusted pretax margin % (1)
0.2
(0.9)
INTEREST EXPENSE:
Floorplan interest expense
$
(30)
$
(41)
(26.8)
(42.6)
Floorplan assistance
--
--
-
-
Net floorplan expense
$
(30)
$
(41)
(26.8)
(42.6)
Other interest expense, net
$
(146)
$
(134)
9.0
(13.6)
(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 - Consolidated
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended March 31,
2017
2016
% Increase/
Constant Currency % (1)
(Decrease)
Increase/ (Decrease)
REVENUES:
New vehicle retail sales
$ 1,337,213
$ 1,409,851
(5.2)
(3.1)
Used vehicle retail sales
660,927
688,171
(4.0)
(2.0)
Used vehicle wholesale sales
104,157
101,592
2.5
6.6
Total used
765,084
789,763
(3.1)
(0.9)
Parts and service
319,698
308,592
3.6
4.7
Finance, insurance and other, net
96,834
100,149
(3.3)
(2.3)
Total
$ 2,518,829
$ 2,608,355
(3.4)
(1.5)
GROSS MARGIN %:
New vehicle retail sales
5.2
5.1
Used vehicle retail sales
6.8
7.1
Used vehicle wholesale sales
0.1
1.4
Total used
5.9
6.4
Parts and service
53.9
54.0
Finance, insurance and other, net
100.0
100.0
Total
15.2
14.9
GROSS PROFIT:
New vehicle retail sales
$
69,227
$
71,727
(3.5)
(1.3)
Used vehicle retail sales
45,005
49,200
(8.5)
(7.5)
Used vehicle wholesale sales
100
1,449
(93.1)
(94.6)
Total used
45,105
50,649
(10.9)
(9.9)
Parts and service
172,356
166,576
3.5
4.9
Finance, insurance and other, net
96,834
100,149
(3.3)
(2.3)
Total
$
383,522
$
389,101
(1.4)
(0.1)
UNITS SOLD:
Retail new vehicles sold
38,290
40,781
(6.1)
Retail used vehicles sold
31,566
32,791
(3.7)
Wholesale used vehicles sold
14,529
14,366
1.1
Total used
46,095
47,157
(2.3)
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
34,923
$
34,571
1.0
3.2
Used vehicle retail
$
20,938
$
20,987
(0.2)
1.8
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,808
$
1,759
2.8
5.1
Used vehicle retail sales
1,426
1,500
(4.9)
(3.9)
Used vehicle wholesale sales
7
101
(93.1)
(94.6)
Total used
979
1,074
(8.8)
(7.9)
Finance, insurance and other, net (per retail unit)
$
1,386
$
1,361
1.8
2.9
OTHER:
SG&A expenses
$
289,779
$
293,664
(1.3)
0.1
Adjusted SG&A expenses(1)
$
291,612
$
290,980
0.2
1.6
SG&A as % revenues
11.5
11.3
Adjusted SG&A as % revenues (1)
11.6
11.2
SG&A as % gross profit
75.6
75.5
Adjusted SG&A as % gross profit (1)
76.0
74.8
Operating margin %
3.2
3.1
Adjusted operating margin % (1)
3.1
3.3
Pretax margin %
2.0
2.1
Adjusted pretax margin % (1)
2.0
2.2
INTEREST EXPENSE:
Floorplan interest expense
$
(11,942)
$
(11,010)
8.5
9.9
Floorplan assistance
10,513
11,514
(8.7)
(8.7)
Net floorplan (expense) income
$
(1,429)
$
504
(383.5)
(413.7)
Other interest expense, net
$
(16,999)
$
(16,929)
0.4
0.7
(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 March 31,
2017
2016
% Increase/
(Decrease)
REVENUES:
New vehicle retail sales
$ 1,018,248
$ 1,081,354
(5.8)
Used vehicle retail sales
521,945
549,854
(5.1)
Used vehicle wholesale sales
70,545
66,761
5.7
Total used
592,490
616,615
(3.9)
Parts and service
271,160
260,134
4.2
Finance, insurance and other, net
85,390
88,632
(3.7)
Total
$ 1,967,288
$ 2,046,735
(3.9)
GROSS MARGIN %:
New vehicle retail sales
5.0
4.9
Used vehicle retail sales
7.3
7.7
Used vehicle wholesale sales
(0.5)
1.9
Total used
6.3
7.1
Parts and service
53.8
54.6
Finance, insurance and other, net
100.0
100.0
Total
16.3
16.0
GROSS PROFIT:
New vehicle retail sales
$
51,206
$
53,237
(3.8)
Used vehicle retail sales
37,934
42,352
(10.4)
Used vehicle wholesale sales
(343)
1,242
(127.6)
Total used
37,591
43,594
(13.8)
Parts and service
146,000
142,062
2.8
Finance, insurance and other, net
85,390
88,632
(3.7)
Total
$
320,187
$
327,525
(2.2)
UNITS SOLD:
Retail new vehicles sold
27,498
30,062
(8.5)
Retail used vehicles sold
24,929
26,357
(5.4)
Wholesale used vehicles sold
9,981
10,113
(1.3)
Total used
34,910
36,470
(4.3)
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
37,030
$
35,971
2.9
Used vehicle retail
$
20,937
$
20,862
0.4
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,862
$
1,771
5.1
Used vehicle retail sales
1,522
1,607
(5.3)
Used vehicle wholesale sales
(34)
123
(127.6)
Total used
1,077
1,195
(9.9)
Finance, insurance and other, net (per retail unit)
$
1,629
$
1,571
3.7
OTHER:
SG&A expenses
$
235,953
$
241,027
(2.1)
Adjusted SG&A expenses(2)
$
237,786
$
238,208
(0.2)
SG&A as % revenues
12.0
11.8
Adjusted SG&A as % revenues (2)
12.1
11.6
SG&A as % gross profit
73.7
73.6
Adjusted SG&A as % gross profit (2)
74.3
72.7
Operating margin %
3.7
3.7
Adjusted operating margin % (2)
3.6
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.
Group 1 Automotive, Inc.
Additional Information - Same Store U.K. (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended March 31,
2017
2016
% Increase/
Constant Currency (2)
(Decrease)
% Increase/ (Decrease)
REVENUES:
New vehicle retail sales
$ 222,305
$ 232,238
(4.3)
10.7
Used vehicle retail sales
94,051
100,674
(6.6)
8.1
Used vehicle wholesale sales
24,396
28,800
(15.3)
(2.0)
Total used
118,447
129,474
(8.5)
5.8
Parts and service
28,219
30,107
(6.3)
8.4
Finance, insurance and other, net
7,618
8,191
(7.0)
7.5
Total
$ 376,589
$ 400,010
(5.9)
8.9
GROSS MARGIN %:
New vehicle retail sales
5.7
5.8
Used vehicle retail sales
5.0
5.2
Used vehicle wholesale sales
2.0
2.1
Total used
4.4
4.5
Parts and service
56.9
53.0
Finance, insurance and other, net
100.0
100.0
Total
11.1
10.8
GROSS PROFIT:
New vehicle retail sales
$
12,698
$
13,444
(5.5)
9.2
Used vehicle retail sales
4,743
5,198
(8.8)
5.5
Used vehicle wholesale sales
499
597
(16.4)
(4.3)
Total used
5,242
5,795
(9.5)
4.5
Parts and service
16,059
15,958
0.6
16.4
Finance, insurance and other, net
7,618
8,191
(7.0)
7.5
Total
$
41,617
$
43,388
(4.1)
10.9
UNITS SOLD:
Retail new vehicles sold
7,650
6,884
11.1
Retail used vehicles sold
4,592
4,215
8.9
Wholesale used vehicles sold
3,361
3,361
-
Total used
7,953
7,576
5.0
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
29,059
$
33,736
(13.9)
(0.4)
Used vehicle retail
$
20,481
$
23,885
(14.2)
(0.8)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,660
$
1,953
(15.0)
(1.8)
Used vehicle retail sales
1,033
1,233
(16.2)
(3.1)
Used vehicle wholesale sales
148
178
(16.9)
(4.3)
Total used
659
765
(13.9)
(0.4)
Finance, insurance and other, net (per retail unit)
$
622
$
738
(15.7)
(2.5)
OTHER:
SG&A expenses
$
31,186
$
32,015
(2.6)
12.6
Adjusted SG&A expenses(2)
$
31,186
$
31,454
(0.9)
14.6
SG&A as % revenues
8.3
8.0
Adjusted SG&A as % revenues (2)
8.3
7.9
SG&A as % gross profit
74.9
73.8
Adjusted SG&A as % gross profit (2)
74.9
72.5
Operating margin %
2.4
2.5
Adjusted operating margin % (2)
2.4
2.6
(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 March 31,
2017
2016
% Increase/
Constant Currency (2)
(Decrease)
% Increase/ (Decrease)
REVENUES:
New vehicle retail sales
$ 53,912
$ 57,210
(5.8)
(23.9)
Used vehicle retail sales
20,406
16,400
24.4
0.3
Used vehicle wholesale sales
3,010
442
581.0
450.3
Total used
23,416
16,842
39.0
12.1
Parts and service
10,244
8,133
26.0
1.8
Finance, insurance and other, net
1,690
1,071
57.8
26.7
Total
$ 89,262
$ 83,256
7.2
(13.4)
GROSS MARGIN %:
New vehicle retail sales
6.1
5.9
Used vehicle retail sales
7.4
2.9
Used vehicle wholesale sales
7.9
7.7
Total used
7.5
3.0
Parts and service
45.8
39.6
Finance, insurance and other, net
100.0
100.0
Total
12.8
9.8
GROSS PROFIT:
New vehicle retail sales
$
3,289
$
3,350
(1.8)
(20.9)
Used vehicle retail sales
1,515
470
222.3
158.2
Used vehicle wholesale sales
238
34
600.0
457.1
Total used
1,753
504
247.8
178.7
Parts and service
4,689
3,220
45.6
17.6
Finance, insurance and other, net
1,690
1,071
57.8
26.7
Total
$ 11,421
$
8,145
40.2
13.0
UNITS SOLD:
Retail new vehicles sold
1,579
2,207
(28.5)
Retail used vehicles sold
928
1,048
(11.5)
Wholesale used vehicles sold
247
204
21.1
Total used
1,175
1,252
(6.2)
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$ 34,143
$ 25,922
31.7
6.4
Used vehicle retail
$ 21,989
$ 15,649
40.5
13.2
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
2,083
$
1,518
37.2
10.6
Used vehicle retail sales
1,633
448
264.5
191.5
Used vehicle wholesale sales
964
167
477.2
360.1
Total used
1,492
403
270.2
196.9
Finance, insurance and other, net (per retail unit)
$
674
$
329
104.9
64.5
OTHER:
SG&A expenses
$ 10,252
$
7,878
30.1
4.9
SG&A as % revenues
11.5
9.5
SG&A as % gross profit
89.8
96.7
Operating margin %
0.9
0.0
(1) Same store amounts include the results for the identical months in each period presented in the comparison, commencing with the first full month we owned the dealership and, in the case of dispositions, ending with the last full month we owned it. Same store results also include the activities of our corporate office.
(2) See the section of this release entitled "Non-GAAP Financial Measures " and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.
Group 1 Automotive, Inc.
Additional Information - Same Store Consolidated (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended March 31,
2017
2016
% Increase/
Constant Currency (2))
(Decrease)
% Increase/ (Decrease)
REVENUES:
New vehicle retail sales
$ 1,294,465
$ 1,370,802
(5.6)
(3.8)
Used vehicle retail sales
636,402
666,928
(4.6)
(3.0)
Used vehicle wholesale sales
97,951
96,003
2.0
5.4
Total used
734,353
762,931
(3.7)
(1.9)
Parts and service
309,623
298,374
3.8
4.6
Finance, insurance and other, net
94,698
97,894
(3.3)
(2.4)
Total
$ 2,433,139
$ 2,530,001
(3.8)
(2.2)
GROSS MARGIN %:
New vehicle retail sales
5.2
5.1
Used vehicle retail sales
6.9
7.2
Used vehicle wholesale sales
0.4
2.0
Total used
6.1
6.5
Parts and service
53.9
54.0
Finance, insurance and other, net
100.0
100.0
Total
15.3
15.0
GROSS PROFIT:
New vehicle retail sales
$
67,193
$
70,031
(4.1)
(2.1)
Used vehicle retail sales
44,192
48,020
(8.0)
(7.1)
Used vehicle wholesale sales
394
1,873
(79.0)
(77.5)
Total used
44,586
49,893
(10.6)
(9.7)
Parts and service
166,748
161,240
3.4
4.4
Finance, insurance and other, net
94,698
97,894
(3.3)
(2.4)
Total
$
373,225
$
379,058
(1.5)
(0.4)
UNITS SOLD:
Retail new vehicles sold
36,727
39,153
(6.2)
Retail used vehicles sold
30,449
31,620
(3.7)
Wholesale used vehicles sold
13,589
13,678
(0.7)
Total used
44,038
45,298
(2.8)
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
35,246
$
35,011
0.7
2.6
Used vehicle retail
$
20,901
$
21,092
(0.9)
0.8
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,830
$
1,789
2.3
4.3
Used vehicle retail sales
1,451
1,519
(4.5)
(3.5)
Used vehicle wholesale sales
29
137
(78.8)
(77.4)
Total used
1,012
1,101
(8.1)
(7.1)
Finance, insurance and other, net (per retail unit)
$
1,410
$
1,383
2.0
2.8
OTHER:
SG&A expenses
$
277,391
$
280,920
(1.3)
(0.2)
Adjusted SG&A expenses(2)
$
279,224
$
277,540
0.6
1.6
SG&A as % revenues
11.4
11.1
Adjusted SG&A as % revenues (2)
11.5
11.0
SG&A as % gross profit
74.3
74.1
Adjusted SG&A as % gross profit (2)
74.8
73.2
Operating margin %
3.4
3.4
Adjusted operating margin % (2)
3.3
3.5
(1) Same store amounts include the results for the identical months in each period presented in the comparison, commencing with the first full month we owned the dealership and, in the case of dispositions, ending with the last full month we owned it. Same store results also include the activities of our corporate office.
(2) See the section of this release entitled "Non-GAAP Financial Measures " and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - U.S.
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended March 31,
2017
2016
% Increase/
(Decrease)
SG&A RECONCILIATION:
As reported
$ 236,273
$ 245,838
(3.9)
Pre-tax adjustments:
Catastrophic events
-
(2,655)
Gain on real estate and dealership transactions -
933
Acquisition costs
-
(30)
Legal settlements (4)
1,833
-
Adjusted SG&A (1)
$ 238,106
$ 244,086
(2.4)
SG&A AS % REVENUES:
Unadjusted
12.0
11.8
Adjusted (1)
12.1
11.7
SG&A AS % GROSS PROFIT:
Unadjusted
73.7
73.9
Adjusted (1)
74.3
73.4
OPERATING MARGIN %
Unadjusted
3.7
3.6
Adjusted (1), (2)
3.6
3.7
PRETAX MARGIN %:
Unadjusted
2.3
2.4
Adjusted (1), (2)
2.2
2.5
SAME STORE SG&A RECONCILIATION:
As reported
$ 235,953
$ 241,027
(2.1)
Pre-tax adjustments:
Catastrophic events
-
(2,655)
Gain on real estate and dealership transactions -
(134)
Acquisition costs
-
(30)
Legal settlements (4)
1,833
-
Adjusted Same Store SG&A (1)
$ 237,786
$ 238,208
(0.2)
SAME STORE SG&A AS % REVENUES:
Unadjusted
12.0
11.8
Adjusted (1)
12.1
11.6
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted
73.7
73.6
Adjusted (1)
74.3
72.7
SAME STORE OPERATING MARGIN %
Unadjusted
3.7
3.7
Adjusted (1), (3)
3.6
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 $510 for three months March 31, 2016.
(3) Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $510 for three months March 31, 2016.
(4) For the three months ended March 31, 2017, the Company recognized a net pre-tax gain related to a settlement with an OEM of $1.8 million.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - U.K.
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended March 31,
2017
2016
% Increase/
(Decrease)
SG&A RECONCILIATION:
As reported
$ 41,624
$ 37,436
11.2
Pre-tax adjustments:
Acquisition costs
-
(561)
Adjusted SG&A (1)
$ 41,624
$ 36,875
12.9
SG&A AS % REVENUES:
Unadjusted
9.2
8.7
Adjusted (1)
9.2
8.5
SG&A AS % GROSS PROFIT:
Unadjusted
82.8
80.1
Adjusted (1)
82.8
78.9
OPERATING MARGIN %
Unadjusted
1.6
1.8
Adjusted (1), (2)
1.6
1.9
PRETAX MARGIN %:
Unadjusted
1.2
1.3
Adjusted (1), (2)
1.2
1.4
SAME STORE SG&A RECONCILIATION:
As reported
$ 31,186
$ 32,015
(2.6)
Pre-tax adjustments:
Acquisition costs
-
(561)
Adjusted Same Store SG&A (1) $ 31,186
$ 31,454
(0.9)
SAME STORE SG&A AS % REVENUES:
Unadjusted
8.3
8.0
Adjusted (1)
8.3
7.9
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted
74.9
73.8
Adjusted (1)
74.9
72.5
SAME STORE OPERATING MARGIN %
Unadjusted
2.4
2.5
Adjusted (1), (3)
2.4
2.6
(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.
(2) Excludes the impact of SG&A reconciling items above.
(3) Excludes the impact of Same Store SG&A reconciling items above.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - Brazil
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended March 31,
2017
2016
% Increase/ (Decrease)
SG&A RECONCILIATION:
As reported
$
11,882
$
10,390
14.4
Pre-tax adjustments:
Loss on real estate and dealership transactions -
(371)
Adjusted SG&A (1)
$
11,882
$
10,019
18.6
SG&A AS % REVENUES:
Unadjusted
11.8
11.0
Adjusted (1)
11.8
10.6
SG&A AS % GROSS PROFIT:
Unadjusted
94.1
107.7
Adjusted (1)
94.1
103.9
OPERATING MARGIN %
Unadjusted
0.4
(1.5)
Adjusted (1), (2)
0.4
(0.7)
PRETAX MARGIN %:
Unadjusted
0.2
(1.7)
Adjusted (1), (2)
0.2
(0.9)
(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 $423 for the three months ended March 31, 2016.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - CONSOLIDATED
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended March 31,
2017
2016
% Increase/ (Decrease)
NET INCOME RECONCILIATION:
As reported
$
33,939
$
34,291
(1.0)
Pre-tax adjustments:
Catastrophic events
Pre-tax
-
2,655
Tax impact
-
(996)
Gain on real estate and dealership transactions
Pre-tax
-
(137)
Tax impact
-
349
Acquisition costs including related tax impact
Pre-tax
-
589
Tax impact
-
(11)
Legal settlements (4)
Pre-tax
(1,833)
-
Tax impact
696
-
Non-cash asset impairment
Pre-tax
-
510
Tax impact
-
(195)
Adjusted net income (1)
$
32,802
$
37,055
(11.5)
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED
COMMON SHARES RECONCILIATION:
Adjusted net income (1)
$
32,802
$
37,055
(11.5)
Less: Adjusted earnings allocated to participating securities 1,206
1,457
(17.2)
Adjusted net income available to diluted common shares (1)
$
31,596
$
35,598
(11.2)
DILUTED (LOSS) INCOME PER COMMON SHARE RECONCILIATION:
As reported
$
1.58
$
1.47
7.5
Pre-tax adjustments:
Catastrophic events
-
0.07
Gain on real estate and dealership transactions
-
0.01
Acquisition costs including related tax impact
-
0.03
Legal settlements (4)
(0.05)
-
Non-cash asset impairment
-
0.01
Adjusted diluted income per share (1)
$
1.53
$
1.59
(3.8)
SG&A RECONCILIATION:
As reported
$ 289,779
$ 293,664
(1.3)
Pre-tax adjustments:
Catastrophic events
-
(2,655)
Gain on real estate and dealership transactions
-
562
Acquisition costs
-
(591)
Legal settlements (4)
1,833
-
Adjusted SG&A (1)
$ 291,612
$ 290,980
0.2
SG&A AS % REVENUES:
Unadjusted
11.5
11.3
Adjusted (1)
11.6
11.2
SG&A AS % GROSS PROFIT:
Unadjusted
75.6
75.5
Adjusted (1)
76.0
74.8
OPERATING MARGIN %
Unadjusted
3.2
3.1
Adjusted (1), (2)
3.1
3.3
PRETAX MARGIN %:
Unadjusted
2.0
2.1
Adjusted (1), (2)
2.0
2.2
SAME STORE SG&A RECONCILIATION:
As reported
$ 277,391
$ 280,920
(1.3)
Pre-tax adjustments:
Catastrophic events
-
(2,655)
Loss on real estate and dealership transactions
-
(134)
Acquisition costs
-
(591)
Legal settlements (4)
1,833
-
Adjusted Same Store SG&A (1)
$ 279,224
$ 277,540
0.6
SAME STORE SG&A AS % REVENUES:
Unadjusted
11.4
11.1
Adjusted (1)
11.5
11.0
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted
74.3
74.1
Adjusted (1)
74.8
73.2
SAME STORE OPERATING MARGIN %
Unadjusted
3.4
3.4
Adjusted (1), (3)
3.3
3.5
(1) See the section of this release entitled "Non-GAAP Financial Measures " for information regarding non-GAAP financial measures and certain selected items that the Company believes impact comparability of financial results between reporting periods.
(2) Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $932 for the three months ended March 31, 2016.
(3) Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $510 for the three
months ended March 31, 2016.
(4) For the three months ended March 31, 2017, the Company recognized a net pre-tax gain related to a settlement with an OEM of $1.8 million.

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SOURCE Group 1 Automotive, Inc.

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