GPI
$69.34
Group 1 Automotive
$2.43
3.63%
Earnings Details
2nd Quarter June 2017
Thursday, July 27, 2017 7:07:00 AM
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Summary

Group 1 Automotive (GPI) Recent Earnings

Group 1 Automotive (GPI) reported 2nd Quarter June 2017 earnings of $1.87 per share on revenue of $2.7 billion. The consensus earnings estimate was $1.99 per share on revenue of $2.7 billion. Revenue fell 4.0% 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
$1.87
Earnings Whisper
-
Consensus Estimate
$1.99
Reported Revenue
$2.67 Bil
Revenue Estimate
$2.71 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Group 1 Automotive Reports Second Quarter 2017 Financial Results

Group 1 Automotive, Inc. (GPI),("Group 1" or the "Company"), an international, Fortune 500 automotive retailer, today reported 2017 second quarter net income of $39.1 million, diluted earnings per common share of $1.84, adjusted net income (a non-GAAP measure) of $39.8 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $1.87.

Second quarter 2017 adjusted net income and diluted earnings per share exclude approximately $681 thousand of net after-tax adjustments, or $0.03 per share, related to catastrophic events and acquisition costs. Reconciliations of non-GAAP financial measures are included in the attached financial tables.

"While we had a strong quarter in Brazil, solid growth in aftersales revenue, and a new record in U.S. F&I performance, these factors were not enough to offset ongoing weakness in vehicle sales in our energy-price-impacted markets. Combined new and used sales dropped seven percent in the quarter for our Texas and Oklahoma stores," said Earl J. Hesterberg, Group 1’s president and chief executive officer. "Our single largest market of Houston was extremely volatile in the second quarter with Houston total industry auto sales dropping 24 percent in June after an increase in May. Group 1’s Houston sales only decreased 12 percent in June, but this is indicative of the headwinds we continue to face in much of Texas and Oklahoma. As for our overseas businesses, the U.K. market did experience some deceleration as a result of the increased road tax enacted in April, with the overall market declining about 10 percent in the second quarter. However, we were able to significantly outperform the market with our new vehicle unit sales only contracting 1.4 percent and overall same store revenue on a constant currency basis growing 2.5 percent. In addition, Brazil delivered another quarter of profitability, with gross profit up 18 percent on a constant currency basis, reflecting double-digit growth in used, aftersales, and F&I. The team has us well positioned for further improvements as the Brazilian economy begins to rebound."

Consolidated Results for Second 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 4.0 percent (decreased 2.4 percent) to $2.7 billion; total gross profit decreased 1.3 percent (decreased 0.1 percent) to $404.9 million.

New vehicle revenues decreased 6.0 percent (decreased 4.6 percent) on a 6.3 percent decrease in unit sales. New vehicle gross profit decreased 7.7 percent (decreased 6.1 percent) to $74.9 million. U.S. Same Store new vehicle margins were down 1.0 percent, or $18 per unit, to $1,858.

Retail used vehicle revenues decreased 4.2 percent (decreased 2.2 percent) on a 2.9 percent decrease in unit sales. Retail used vehicle gross profit decreased 6.9 percent (decreased 5.5 percent) to $44.9 million reflecting the impact of lower margins, down $62 per unit, in combination with the volume decline.

Parts and service gross profit increased 3.3 percent (increased 4.5 percent) on revenue growth of 3.0 percent (increased 4.1 percent). Same Store parts and service gross profit increased 4.2 percent (increased 5.4 percent) on revenue growth of 4.2 percent (increased 5.3 percent). U.S. Same Store parts & service revenue increased 5.6 percent.

Finance and Insurance (F&I) gross profit per retail unit (PRU) increased 4.1 percent (increased 5.0 percent) to $1,461 per retail unit. U.S. F&I gross profit per unit increased 5.4 percent, or $86, to a record $1,688.

Selling, General and Administrative (SG&A) expenses as a percent of gross profit increased 80 basis points to 73.7 percent. Adjusted SG&A expenses as a percent of gross profit (a non-GAAP measure) increased 130 basis points to 73.5 percent.

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

United States: The Company’s U.S. operations accounted for 79.5 percent of total revenues and 84.1 percent of total gross profit. On a Same Store basis, U.S. revenues were $2.1 billion, a decrease of 2.7 percent, and total Same Store gross profit was essentially flat. The revenue decrease reflects 5.7 percent and 4.9 percent declines in Same Store retail new and used unit sales, respectively. The vast majority of the sales decline came from the Company’s oil-impacted markets of Texas and Oklahoma.

United Kingdom: The Company’s U.K. operations accounted for 16.4 percent of total revenues and 12.6 percent of total gross profit. Although the overall U.K. new vehicle industry sales decreased 10 percent in the quarter, the Company’s Same Store new vehicle unit sales outperformed the market with only a slight decrease of 1.4 percent. Total Same Store revenue grew 2.5 percent and total Same Store gross profit grew 2.6 percent, both on a constant currency basis. The gross profit growth was driven by a 4.2 percent increase in aftersales gross profit on a constant currency basis, and a 7.5 percent increase in F&I per retail unit on a constant currency basis.

Brazil: The Company’s Brazilian operations were profitable again this quarter and accounted for 4.1 percent of total revenues and 3.3 percent of total gross profit. Total Same Store revenue grew 10.8 percent (increased 1.7 percent) and total Same Store gross profit increased 28.5 percent (increased 18.0 percent), reflecting strong growth in Same Store total used vehicles gross profit of 46.9 percent (increased 35.2 percent) and a 42.4 percent increase (increased 30.6 percent) in Same Store aftersales gross profit. In addition, Same Store F&I gross profit PRU increased 43.5 percent (increased 32.0 percent). SG&A as a percentage of gross profit improved 440 basis points to 88.3 percent.

Corporate Development

The Company is pleased to announce it has acquired its first Jaguar and Land Rover dealerships in the U.S., which are located in Albuquerque and Santa Fe, New Mexico, and have projected annualized revenues of $40 million. The addition of these two stores expands the Company’s global network to seven Land Rover and seven Jaguar franchises. The dealerships, which operate as Jaguar Land Rover Albuquerque and Land Rover Santa Fe, are the only Jaguar and Land Rover dealerships in the state of New Mexico, and expand the Company’s presence to 15 states in the U.S.

As previously announced in April, the Company opened Cedar Park Nissan in Austin, Texas, which has an expected annualized revenue of $30 million. This new point of representation for Nissan was awarded to Group 1 by Nissan Motor Corporation U.S.A. Additionally, as previously announced in July 2017, the Company acquired Beadles Group Ltd in the U.K., which expands the dealership footprint in the region to 43 stores. With expected annual revenues of $330 million, the Beadles acquisition increases the Company’s projected U.K. annual revenue base to over $2 billion.

Year-to-date 2017, the Company has acquired 16 dealerships, which are expected to generate an estimated $435 million in annualized revenues, and the Company has disposed of two dealerships in Brazil, which generated approximately $25 million in trailing-twelve-month revenues.

Share Repurchase Authorization

During the second quarter, the Company repurchased 629,298 shares, or approximately three percent of its previously outstanding common shares, at an average price per common share of $62.01 for a total of $39.0 million. As of June 30, 2017, $50.7 million remains available under the Company’s current common stock share repurchase authorization, which was reset in May 2017.

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.

Second Quarter 2017 Earnings Conference Call Details

Group 1’s senior management will host a conference call today at 10 a.m. ET to discuss the 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. Click on ’Investor Relations’ and then ’Events’ or through this link: 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: 1935170

A telephonic replay will be available following the call through August 3, 2017 by dialing:

Domestic:
1-877-344-7529
International: 1-412-317-0088
Replay ID:
10110617

About Group 1 Automotive, Inc. Group 1 owns and operates 173 automotive dealerships, 227 franchises, and 47 collision centers in the United States, the United Kingdom and Brazil that offer 32 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service contracts; provides automotive maintenance and repair services; and sells vehicle parts.

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

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

NON-GAAP FINANCIAL MEASURES

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

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

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

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

Media contacts: Pete DeLongchamps 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 June 30,
2017
2016
% Increase/
(Decrease)
REVENUES:
New vehicle retail sales
$ 1,448,768
$ 1,540,759
(6.0)
Used vehicle retail sales
685,949
715,778
(4.2)
Used vehicle wholesale sales
99,377
96,279
3.2
Parts and service
331,631
322,073
3.0
Finance, insurance and other, net
106,470
107,560
(1.0)
Total revenues
2,672,195
2,782,449
(4.0)
COST OF SALES:
New vehicle retail sales
1,373,857
1,459,611
(5.9)
Used vehicle retail sales
641,036
667,513
(4.0)
Used vehicle wholesale sales
99,644
96,331
3.4
Parts and service
152,766
148,875
2.6
Total cost of sales
2,267,303
2,372,330
(4.4)
GROSS PROFIT
404,892
410,119
(1.3)
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
298,568
299,022
(0.2)
DEPRECIATION AND AMORTIZATION EXPENSE
14,093
12,713
10.9
ASSET IMPAIRMENTS
-
1,024
(100.0)
OPERATING INCOME
92,231
97,360
(5.3)
OTHER EXPENSE:
Floorplan interest expense
(13,226)
(11,593)
14.1
Other interest expense, net
(17,315)
(16,705)
3.7
INCOME BEFORE INCOME TAXES
61,690
69,062
(10.7)
PROVISION FOR INCOME TAXES
(22,557)
(22,482)
0.3
NET INCOME
$
39,133
$
46,580
(16.0)
Less: Earnings allocated to participating securities $
1,389
$
1,884
(26.3)
Earnings available to diluted common shares
$
37,744
$
44,696
(15.6)
DILUTED EARNINGS PER SHARE
$
1.84
$
2.12
(13.2)
Weighted average dilutive common shares outstanding
20,522
21,070
(2.6)
Weighted average participating securities
761
892
(14.7)
Total weighted average shares outstanding
21,283
21,962
(3.1)
Six Months Ended June 30,
2017
2016
% Increase/
(Decrease)
REVENUES:
New vehicle retail sales
$ 2,785,981
$ 2,950,609
(5.6)
Used vehicle retail sales
1,346,876
1,403,949
(4.1)
Used vehicle wholesale sales
203,534
197,871
2.9
Parts and service
651,329
630,665
3.3
Finance, insurance and other, net
203,304
207,710
(2.1)
Total revenues
5,191,024
5,390,804
(3.7)
COST OF SALES:
New vehicle retail sales
2,641,843
2,797,734
(5.6)
Used vehicle retail sales
1,256,958
1,306,484
(3.8)
Used vehicle wholesale sales
203,701
196,474
3.7
Parts and service
300,108
290,891
3.2
Total cost of sales
4,402,610
4,591,583
(4.1)
GROSS PROFIT
788,414
799,221
(1.4)
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
588,347
592,687
(0.7)
DEPRECIATION AND AMORTIZATION EXPENSE
27,699
25,177
10.0
ASSET IMPAIRMENTS
-
1,956
(100.0)
OPERATING INCOME
172,368
179,401
(3.9)
OTHER EXPENSE:
Floorplan interest expense
(25,168)
(22,603)
11.3
Other interest expense, net
(34,314)
(33,634)
2.0
INCOME BEFORE INCOME TAXES
112,886
123,164
(8.3)
PROVISION FOR INCOME TAXES
(39,814)
(42,293)
(5.9)
NET INCOME
$
73,072
$
80,871
(9.6)
Less: Earnings allocated to participating securities $
2,645
$
3,223
(17.9)
Earnings available to diluted common shares
$
70,427
$
77,648
(9.3)
DILUTED EARNINGS PER SHARE
$
3.42
$
3.57
(4.2)
Weighted average dilutive common shares outstanding
20,609
21,762
(5.3)
Weighted average participating securities
789
907
(13.0)
Total weighted average shares outstanding
21,398
22,669
(5.6)
Group 1 Automotive, Inc.
Consolidated Balance Sheets
(Dollars in thousands)
June 30, 2017
December 31,
% Increase/
2016
(Decrease)
ASSETS:
(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents
$
26,573
$
20,992
26.6
Contracts in transit and vehicle receivables, net
217,378
269,508
(19.3)
Accounts and notes receivable, net
158,542
173,364
(8.5)
Inventories, net
1,803,909
1,651,815
9.2
Prepaid expenses and other current assets
87,470
34,908
150.6
Total current assets
2,293,872
2,150,587
6.7
PROPERTY AND EQUIPMENT, net
1,167,345
1,125,883
3.7
GOODWILL AND INTANGIBLE FRANCHISE RIGHTS
1,164,465
1,161,639
0.2
OTHER ASSETS
18,903
23,794
(20.6)
Total assets
$ 4,644,585
$
4,461,903
4.1
LIABILITIES AND STOCKHOLDERS’ EQUITY:
CURRENT LIABILITIES:
Floorplan notes payable - credit facility and other
$ 1,214,084
$
1,136,654
6.8
Offset account related to floorplan notes payable - credit facility
(55,579)
(59,626)
(6.8)
Floorplan notes payable - manufacturer affiliates
430,619
392,661
9.7
Offset account related to floorplan notes payable - manufacturer affiliates
(21,000)
(25,500)
(17.6)
Current maturities of long-term debt and short-term financing
53,184
72,419
(26.6)
Current liabilities from interest rate risk management activities
1,626
3,941
(58.7)
Accounts payable
330,747
356,099
(7.1)
Accrued expenses
173,173
176,469
(1.9)
Total current liabilities
2,126,854
2,053,117
3.6
5.00% SENIOR NOTES (principal of $550,000 at December 31, 2016 and December 31, 2015, respectively)
541,256
540,465
0.1
5.25% SENIOR NOTES (principal of $300,000 at December 31, 2016 and December 31, 2015, respectively)
295,869
295,591
0.1
ACQUISITION LINE
32,509
--
100.0
REAL ESTATE RELATED AND OTHER LONG-TERM DEBT, net of current maturities
352,872
333,326
5.9
CAPITAL LEASE OBLIGATIONS RELATED TO REAL ESTATE, net of current maturities
41,339
43,427
(4.8)
DEFERRED INCOME TAXES
174,220
161,502
7.9
LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES
18,065
20,470
(11.7)
OTHER LIABILITIES
89,953
83,805
7.3
STOCKHOLDERS’ EQUITY:
Common stock
256
257
(0.4)
Additional paid-in capital
287,410
290,899
(1.2)
Retained earnings
1,116,195
1,053,301
6.0
Accumulated other comprehensive loss
(136,268)
(146,944)
(7.3)
Treasury stock
(295,945)
(267,313)
10.7
Total stockholders’ equity
$
971,648
$
930,200
4.5
Total liabilities and stockholders’ equity
$ 4,644,585
$
4,461,903
4.1
Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2017 (%)
2016 (%)
2017 (%)
2016 (%)
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
Region
Geographic Market
United States
Texas
36.6
36.5
35.6
36.6
California
7.9
9.3
7.9
9.2
Oklahoma
6.5
6.8
6.5
7.0
Massachusetts
4.9
5.0
4.7
4.9
Georgia
4.8
4.1
4.7
4.0
Florida
2.5
2.6
2.5
2.5
New Hampshire
2.3
1.9
2.0
1.8
New Jersey
1.9
1.6
1.7
1.6
Louisiana
1.9
2.0
2.0
2.0
Kansas
1.8
1.9
1.7
1.9
South Carolina
1.5
1.4
1.4
1.4
Mississippi
1.3
1.6
1.4
1.5
Alabama
1.1
0.9
1.1
0.9
Maryland
0.4
0.5
0.4
0.5
75.4
76.1
73.6
75.8
International
United Kingdom
19.3
18.0
21.4
18.0
Brazil
5.3
5.9
5.0
6.2
100.0
100.0
100.0
100.0
NEW VEHICLE UNIT SALES BRAND MIX:
Toyota/Scion/Lexus
25.4
24.8
24.4
24.3
BMW/MINI
13.1
13.5
13.7
13.3
Volkswagen/Audi/Porsche
12.3
10.9
12.4
10.8
Ford/Lincoln
11.3
10.9
12.1
11.2
Honda/Acura
9.6
10.4
9.3
10.4
Nissan
7.6
6.2
7.9
7.0
Chevrolet/GMC/Buick/Cadillac
5.9
7.6
6.3
7.7
Hyundai/Kia
4.3
4.3
3.9
4.5
Mercedes-Benz/smart/Sprinter
4.2
4.3
4.1
4.0
Chrysler/Dodge/Jeep/RAM
4.1
4.1
3.9
4.1
Other
2.2
3.0
2.0
2.7
100.0
100.0
100.0
100.0
Group 1 Automotive, Inc.
Additional Information - U.S.
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended June 30,
2017
2016
% Increase/
(Decrease)
REVENUES:
New vehicle retail sales
$ 1,143,771
$ 1,203,311
(4.9)
Used vehicle retail sales
536,193
575,280
(6.8)
Used vehicle wholesale sales
66,476
62,062
7.1
Total used
602,669
637,342
(5.4)
Parts and service
282,698
270,525
4.5
Finance, insurance and other, net
94,552
96,204
(1.7)
Total
$ 2,123,690
$ 2,207,382
(3.8)
GROSS MARGIN %:
New vehicle retail sales
5.0
5.1
Used vehicle retail sales
6.8
7.0
Used vehicle wholesale sales
0.4
--
Total used
6.1
6.3
Parts and service
53.8
54.2
Finance, insurance and other, net
100.0
100.0
Total
16.0
15.6
GROSS PROFIT:
New vehicle retail sales
$
57,000
$
61,640
(7.5)
Used vehicle retail sales
36,704
40,184
(8.7)
Used vehicle wholesale sales
246
27
811.1
Total used
36,950
40,211
(8.1)
Parts and service
151,971
146,541
3.7
Finance, insurance and other, net
94,552
96,204
(1.7)
Total
$
340,473
$
344,596
(1.2)
UNITS SOLD:
Retail new vehicles sold
30,802
33,191
(7.2)
Retail used vehicles sold
25,202
26,856
(6.2)
Wholesale used vehicles sold
9,701
9,476
2.4
Total used
34,903
36,332
(3.9)
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
37,133
$
36,254
2.4
Used vehicle retail
$
21,276
$
21,421
(0.7)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,851
$
1,857
(0.3)
Used vehicle retail sales
1,456
1,496
(2.7)
Used vehicle wholesale sales
25
3
733.3
Total used
1,059
1,107
(4.3)
Finance, insurance and other, net (per retail unit)
$
1,688
$
1,602
5.4
OTHER:
SG&A expenses
$
243,844
$
245,389
(0.6)
Adjusted SG&A expenses(1)
$
243,201
$
242,370
0.3
SG&A as % revenues
11.5
11.1
Adjusted SG&A as % revenues (1)
11.5
11.0
SG&A as % gross profit
71.6
71.2
Adjusted SG&A as % gross profit (1)
71.4
70.3
Operating margin %
4.0
4.0
Adjusted operating margin % (1)
4.0
4.1
Pretax margin %
2.6
2.8
Adjusted pretax margin % (1)
2.7
3.0
INTEREST EXPENSE:
Floorplan interest expense
$
(12,062)
$
(10,401)
16.0
Floorplan assistance
11,452
12,100
(5.4)
Net floorplan (expenses) income
$
(610)
$
1,699
(135.9)
Other interest expense, net
$
(16,572)
$
(15,357)
7.9
Six Months Ended June 30,
2017
2016
% Increase/
(Decrease)
REVENUES:
New vehicle retail sales
$ 2,162,020
$ 2,303,703
(6.2)
Used vehicle retail sales
1,058,140
1,134,044
(6.7)
Used vehicle wholesale sales
137,021
130,935
4.6
Total used
1,195,161
1,264,979
(5.5)
Parts and service
553,857
533,983
3.7
Finance, insurance and other, net
180,371
186,350
(3.2)
Total
$ 4,091,409
$ 4,289,015
(4.6)
GROSS MARGIN %:
New vehicle retail sales
5.0
5.0
Used vehicle retail sales
7.1
7.4
Used vehicle wholesale sales
(0.1)
0.7
Total used
6.2
6.7
Parts and service
53.8
54.4
Finance, insurance and other, net
100.0
100.0
Total
16.2
15.8
GROSS PROFIT:
New vehicle retail sales
$
108,209
$
115,787
(6.5)
Used vehicle retail sales
74,636
83,639
(10.8)
Used vehicle wholesale sales
(116)
871
(113.3)
Total used
74,520
84,510
(11.8)
Parts and service
297,969
290,660
2.5
Finance, insurance and other, net
180,371
186,350
(3.2)
Total
$
661,069
$
677,307
(2.4)
UNITS SOLD:
Retail new vehicles sold
58,300
63,992
(8.9)
Retail used vehicles sold
50,131
53,687
(6.6)
Wholesale used vehicles sold
19,682
19,889
(1.0)
Total used
69,813
73,576
(5.1)
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
37,084
$
36,000
3.0
Used vehicle retail
$
21,107
$
21,123
(0.1)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,856
$
1,809
2.6
Used vehicle retail sales
1,489
1,558
(4.4)
Used vehicle wholesale sales
(6)
44
(113.6)
Total used
1,067
1,149
(7.1)
Finance, insurance and other, net (per retail unit)
$
1,663
$
1,584
5.0
OTHER:
SG&A expenses
$
480,117
$
491,229
(2.3)
Adjusted SG&A expenses(1)
$
481,307
$
486,456
(1.1)
SG&A as % revenues
11.7
11.5
Adjusted SG&A as % revenues (1)
11.8
11.3
SG&A as % gross profit
72.6
72.5
Adjusted SG&A as % gross profit (1)
72.8
71.8
Operating margin %
3.8
3.8
Adjusted operating margin % (1)
3.8
4.0
Pretax margin %
2.5
2.6
Adjusted pretax margin % (1)
2.5
2.8
INTEREST EXPENSE:
Floorplan interest expense
$
(22,940)
$
(20,449)
12.2
Floorplan assistance
21,736
23,351
(6.9)
Net floorplan (expense) income
$
(1,204)
$
2,902
(141.5)
Other interest expense, net
$
(32,844)
$
(30,870)
6.4
(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,
2017
2016
% Increase/
Constant Currency (1)
(Decrease)
% Increase/ (Decrease)
REVENUES:
New vehicle retail sales
$
231,415
$
262,028
(11.7)
(1.0)
Used vehicle retail sales
128,406
122,827
4.5
17.2
Used vehicle wholesale sales
30,448
33,367
(8.7)
2.2
Total used
158,854
156,194
1.7
14.0
Parts and service
37,050
39,949
(7.3)
3.9
Finance, insurance and other, net
9,784
9,621
1.7
13.9
Total
$
437,103
$
467,792
(6.6)
4.7
GROSS MARGIN %:
New vehicle retail sales
5.9
5.9
Used vehicle retail sales
5.2
5.6
Used vehicle wholesale sales
(2.3)
(0.3)
Total used
3.8
4.3
Parts and service
57.9
56.3
Finance, insurance and other, net
100.0
100.0
Total
11.7
11.6
GROSS PROFIT:
New vehicle retail sales
$
13,744
$
15,462
(11.1)
(0.6)
Used vehicle retail sales
6,679
6,854
(2.6)
9.4
Used vehicle wholesale sales
(715)
(114)
(527.2)
(585.0)
Total used
5,964
6,740
(11.5)
(0.3)
Parts and service
21,440
22,505
(4.7)
6.7
Finance, insurance and other, net
9,784
9,621
1.7
13.9
Total
$
50,932
$
54,328
(6.3)
5.0
UNITS SOLD:
Retail new vehicles sold
7,894
7,868
0.3
Retail used vehicles sold
5,813
5,006
16.1
Wholesale used vehicles sold
4,137
3,997
3.5
Total used
9,950
9,003
10.5
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
29,315
$
33,303
(12.0)
(1.4)
Used vehicle retail
$
22,089
$
24,536
(10.0)
1.0
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,741
$
1,965
(11.4)
(0.9)
Used vehicle retail sales
1,149
1,369
(16.1)
(5.8)
Used vehicle wholesale sales
(173)
(29)
(496.6)
(561.8)
Total used
599
749
(20.0)
(9.8)
Finance, insurance and other, net (per retail unit)
$
714
$
747
(4.4)
7.0
OTHER:
SG&A expenses
$
42,456
$
42,109
0.8
13.1
Adjusted SG&A expenses(1)
$
42,168
$
42,109
0.1
12.3
SG&A as % revenues
9.7
9.0
Adjusted SG&A as % revenues (1)
9.6
9.0
SG&A as % gross profit
83.4
77.5
Adjusted SG&A as % gross profit (1)
82.8
77.5
Operating margin %
1.5
2.2
Adjusted operating margin % (1)
1.6
2.2
Pretax margin %
1.1
1.7
Adjusted pretax margin % (1)
1.2
1.7
INTEREST EXPENSE:
Floorplan interest expense
$
(1,053)
$
(1,134)
(7.1)
4.1
Floorplan assistance
220
225
(2.2)
9.7
Net floorplan expense
$
(833)
$
(909)
(8.4)
2.8
Other interest expense, net
$
(684)
$
(1,385)
(50.6)
(44.2)
Six Months Ended June 30,
2017
2016
% Increase/
Constant Currency (1)
(Decrease)
% Increase/ (Decrease)
REVENUES:
New vehicle retail sales
$
490,055
$
508,564
(3.6)
9.8
Used vehicle retail sales
243,775
232,944
4.6
19.1
Used vehicle wholesale sales
60,957
65,399
(6.8)
6.1
Total used
304,732
298,343
2.1
16.2
Parts and service
73,831
74,498
(0.9)
12.8
Finance, insurance and other, net
18,812
18,283
2.9
17.0
Total
$
887,430
$
899,688
(1.4)
12.3
GROSS MARGIN %:
New vehicle retail sales
5.7
5.8
Used vehicle retail sales
5.0
5.2
Used vehicle wholesale sales
(0.8)
0.7
Total used
3.8
4.2
Parts and service
57.8
55.0
Finance, insurance and other, net
100.0
100.0
Total
11.4
11.2
GROSS PROFIT:
New vehicle retail sales
$
28,145
$
29,316
(4.0)
9.2
Used vehicle retail sales
12,108
12,064
0.4
14.2
Used vehicle wholesale sales
(504)
458
(210.0)
(220.6)
Total used
11,604
12,522
(7.3)
5.6
Parts and service
42,665
40,953
4.2
18.6
Finance, insurance and other, net
18,812
18,283
2.9
17.0
Total
$
101,226
$
101,074
0.2
14.0
UNITS SOLD:
Retail new vehicles sold
16,912
15,226
11.1
Retail used vehicles sold
11,424
9,601
19.0
Wholesale used vehicles sold
8,306
7,639
8.7
Total used
19,730
17,240
14.4
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
28,977
$
33,401
(13.2)
(1.1)
Used vehicle retail
$
21,339
$
24,262
(12.0)
0.1
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,664
$
1,925
(13.6)
(1.7)
Used vehicle retail sales
1,060
1,257
(15.7)
(4.0)
Used vehicle wholesale sales
(61)
60
(201.7)
(210.9)
Total used
588
726
(19.0)
(7.7)
Finance, insurance and other, net (per retail unit)
$
664
$
736
(9.8)
2.5
OTHER:
SG&A expenses
$
84,080
$
79,545
5.7
20.3
Adjusted SG&A expenses(1)
$
83,792
$
78,984
6.1
20.8
SG&A as % revenues
9.5
8.8
Adjusted SG&A as % revenues (1)
9.4
8.8
SG&A as % gross profit
83.1
78.7
Adjusted SG&A as % gross profit (1)
82.8
78.1
Operating margin %
1.5
2.0
Adjusted operating margin % (1)
1.6
2.1
Pretax margin %
1.2
1.5
Adjusted pretax margin % (1)
1.2
1.6
INTEREST EXPENSE:
Floorplan interest expense
$
(2,087)
$
(2,054)
1.6
15.6
Floorplan assistance
449
488
(8.0)
4.8
Net floorplan expense
$
(1,638)
$
(1,566)
4.6
19.0
Other interest expense, net
$
(1,265)
$
(2,667)
(52.6)
(46.0)
(1) See the section of this release entitled "Non-GAAP Financial Measures" and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.
Group 1 Automotive, Inc.
Additional Information - Brazil
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended June 30,
2017
2016
% Increase/
Constant Currency (1)
(Decrease)
% Increase/ (Decrease)
REVENUES:
New vehicle retail sales
$
73,582
$
75,420
(2.4)
(10.5)
Used vehicle retail sales
21,350
17,671
20.8
11.0
Used vehicle wholesale sales
2,453
850
188.6
166.2
Total used
23,803
18,521
28.5
18.1
Parts and service
11,883
11,599
2.4
(6.0)
Finance, insurance and other, net
2,134
1,735
23.0
12.9
Total
$ 111,402
$ 107,275
3.8
(4.7)
GROSS MARGIN %:
New vehicle retail sales
5.7
5.4
Used vehicle retail sales
7.2
6.9
Used vehicle wholesale sales
8.2
4.1
Total used
7.3
6.8
Parts and service
45.9
35.8
Finance, insurance and other, net
100.0
100.0
Total
12.1
10.4
GROSS PROFIT:
New vehicle retail sales
$
4,167
$
4,046
3.0
(5.5)
Used vehicle retail sales
1,530
1,227
24.7
14.6
Used vehicle wholesale sales
202
35
477.1
422.2
Total used
1,732
1,262
37.2
26.0
Parts and service
5,454
4,152
31.4
20.4
Finance, insurance and other, net
2,134
1,735
23.0
12.9
Total
$
13,487
$
11,195
20.5
10.5
UNITS SOLD:
Retail new vehicles sold
2,180
2,585
(15.7)
Retail used vehicles sold
988
1,089
(9.3)
Wholesale used vehicles sold
237
211
12.3
Total used
1,225
1,300
(5.8)
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
33,753
$
29,176
15.7
6.1
Used vehicle retail
$
21,609
$
16,227
33.2
22.3
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,911
$
1,565
22.1
12.1
Used vehicle retail sales
1,549
1,127
37.4
26.3
Used vehicle wholesale sales
852
166
413.3
364.9
Total used
1,414
971
45.6
33.7
Finance, insurance and other, net (per retail unit)
$
674
$
472
42.8
30.9
OTHER:
SG&A expenses
$
12,268
$
11,524
6.5
(2.3)
SG&A as % revenues
11.0
10.7
SG&A as % gross profit
91.0
102.9
Operating margin %
0.8
(0.6)
Pretax margin %
0.6
(0.6)
INTEREST EXPENSE:
Floorplan interest expense
$
(111)
$
(58)
91.4
76.6
Floorplan assistance
-
-
-
-
Net floorplan expense
$
(111)
$
(58)
91.4
76.6
Other interest expense, net
$
(59)
$
37
(259.5)
(248.2)
Six Months Ended June 30,
2017
2016
% Increase/ (Decrease)
Constant Currency (1)%
Increase/ (Decrease)
REVENUES:
New vehicle retail sales
$ 133,906
$ 138,342
(3.2)
(16.3)
Used vehicle retail sales
44,961
36,961
21.6
4.2
Used vehicle wholesale sales
5,556
1,537
261.5
212.1
Total used
50,517
38,498
31.2
12.5
Parts and service
23,641
22,184
6.6
(8.1)
Finance, insurance and other, net
4,121
3,077
33.9
15.8
Total
$ 212,185
$ 202,101
5.0
(9.4)
GROSS MARGIN %:
New vehicle retail sales
5.8
5.6
Used vehicle retail sales
7.1
4.8
Used vehicle wholesale sales
8.2
4.4
Total used
7.2
4.8
Parts and service
44.8
36.8
Finance, insurance and other, net
100.0
100.0
Total
12.3
10.3
GROSS PROFIT:
New vehicle retail sales
$
7,784
$
7,772
0.2
(13.8)
Used vehicle retail sales
3,174
1,762
80.1
58.0
Used vehicle wholesale sales
453
68
566.2
468.8
Total used
3,627
1,830
98.2
73.2
Parts and service
10,587
8,161
29.7
11.6
Finance, insurance and other, net
4,121
3,077
33.9
15.8
Total
$
26,119
$
20,840
25.3
8.1
UNITS SOLD:
Retail new vehicles sold
3,954
5,207
(24.1)
Retail used vehicles sold
2,014
2,454
(17.9)
Wholesale used vehicles sold
616
522
18.0
Total used
2,630
2,976
(11.6)
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
33,866
$
26,568
27.5
10.2
Used vehicle retail
$
22,324
$
15,062
48.2
27.0
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,969
$
1,493
31.9
13.5
Used vehicle retail sales
1,576
718
119.5
92.5
Used vehicle wholesale sales
735
130
465.4
382.0
Total used
1,379
615
124.2
96.0
Finance, insurance and other, net (per retail unit)
$
691
$
402
71.9
48.6
OTHER:
SG&A expenses
$
24,150
$
21,913
10.2
(5.1)
Adjusted SG&A expenses(1)
$
24,150
$
21,542
12.1
(3.4)
SG&A as % revenues
11.4
10.8
Adjusted SG&A as % revenues (1)
11.4
10.7
SG&A as % gross profit
92.5
105.2
Adjusted SG&A as % gross profit (1)
92.5
103.4
Operating margin %
0.6
(1.0)
Adjusted operating margin % (1)
0.6
(0.6)
Pretax margin %
0.4
(1.1)
Adjusted pretax margin % (1)
0.4
(0.7)
INTEREST EXPENSE:
Floorplan interest expense
$
(141)
$
(100)
41.0
23.7
Floorplan assistance
-
-
-
-
Net floorplan expense
$
(141)
$
(100)
41.0
23.7
Other interest expense, net
$
(205)
$
(97)
111.3
61.0
(1) See the section of this release entitled "Non-GAAP Financial Measures" and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.
Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended June 30,
2017
2016
% Increase/
Constant Currency % (1)
(Decrease)
Increase/ (Decrease)
REVENUES:
New vehicle retail sales
$ 1,448,768
$ 1,540,759
(6.0)
(4.6)
Used vehicle retail sales
685,949
715,778
(4.2)
(2.2)
Used vehicle wholesale sales
99,377
96,279
3.2
6.8
Total used
785,326
812,057
(3.3)
(1.2)
Parts and service
331,631
322,073
3.0
4.1
Finance, insurance and other, net
106,470
107,560
(1.0)
(0.1)
Total
$ 2,672,195
$ 2,782,449
(4.0)
(2.4)
GROSS MARGIN %:
New vehicle retail sales
5.2
5.3
Used vehicle retail sales
6.5
6.7
Used vehicle wholesale sales
(0.3)
(0.1)
Total used
5.7
5.9
Parts and service
53.9
53.8
Finance, insurance and other, net
100.0
100.0
Total
15.2
14.7
GROSS PROFIT:
New vehicle retail sales
$
74,911
$
81,148
(7.7)
(6.1)
Used vehicle retail sales
44,913
48,265
(6.9)
(5.5)
Used vehicle wholesale sales
(267)
(52)
(413.5)
(570.2)
Total used
44,646
48,213
(7.4)
(6.1)
Parts and service
178,865
173,198
3.3
4.5
Finance, insurance and other, net
106,470
107,560
(1.0)
(0.1)
Total
$
404,892
$
410,119
(1.3)
(0.1)
UNITS SOLD:
Retail new vehicles sold
40,876
43,644
(6.3)
Retail used vehicles sold
32,003
32,951
(2.9)
Wholesale used vehicles sold
14,075
13,684
2.9
Total used
46,078
46,635
(1.2)
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
35,443
$
35,303
0.4
1.9
Used vehicle retail
$
21,434
$
21,722
(1.3)
0.7
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,833
$
1,859
(1.4)
0.3
Used vehicle retail sales
1,403
1,465
(4.2)
(2.7)
Used vehicle wholesale sales
(19)
(4)
(375.0)
(551.6)
Total used
969
1,034
(6.3)
(5.0)
Finance, insurance and other, net (per retail unit)
$
1,461
$
1,404
4.1
5.0
OTHER:
SG&A expenses
$
298,568
$
299,022
(0.2)
1.2
Adjusted SG&A expenses(1)
$
297,637
$
296,003
0.6
1.9
SG&A as % revenues
11.2
10.7
Adjusted SG&A as % revenues (1)
11.1
10.6
SG&A as % gross profit
73.7
72.9
Adjusted SG&A as % gross profit (1)
73.5
72.2
Operating margin %
3.5
3.5
Adjusted operating margin % (1)
3.5
3.6
Pretax margin %
2.3
2.5
Adjusted pretax margin % (1)
2.3
2.6
INTEREST EXPENSE:
Floorplan interest expense
$
(13,226)
$
(11,593)
14.1
15.1
Floorplan assistance
11,672
12,325
(5.3)
(5.1)
Net floorplan income
$
(1,554)
$
732
(312.3)
(324.9)
Other interest expense, net
$
(17,315)
$
(16,705)
3.7
4.2
Six Months Ended June 30,
2017
2016
% Increase/
Constant Currency % (1)
(Decrease)
Increase/ (Decrease)
REVENUES:
New vehicle retail sales
$ 2,785,981
$ 2,950,609
(5.6)
(3.9)
Used vehicle retail sales
1,346,876
1,403,949
(4.1)
(2.1)
Used vehicle wholesale sales
203,534
197,871
2.9
6.7
Total used
1,550,410
1,601,820
(3.2)
(1.0)
Parts and service
651,329
630,665
3.3
4.4
Finance, insurance and other, net
203,304
207,710
(2.1)
(1.1)
Total
$ 5,191,024
$ 5,390,804
(3.7)
(2.0)
GROSS MARGIN %:
New vehicle retail sales
5.2
5.2
Used vehicle retail sales
6.7
6.9
Used vehicle wholesale sales
(0.1)
0.7
Total used
5.8
6.2
Parts and service
53.9
53.9
Finance, insurance and other, net
100.0
100.0
Total
15.2
14.8
GROSS PROFIT:
New vehicle retail sales
$
144,138
$
152,875
(5.7)
(3.9)
Used vehicle retail sales
89,918
97,465
(7.7)
(6.4)
Used vehicle wholesale sales
(167)
1,397
(112.0)
(120.2)
Total used
89,751
98,862
(9.2)
(8.0)
Parts and service
351,221
339,774
3.4
4.7
Finance, insurance and other, net
203,304
207,710
(2.1)
(1.1)
Total
$
788,414
$
799,221
(1.4)
(0.1)
UNITS SOLD:
Retail new vehicles sold
79,166
84,425
(6.2)
Retail used vehicles sold
63,569
65,742
(3.3)
Wholesale used vehicles sold
28,604
28,050
2.0
Total used
92,173
93,792
(1.7)
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
35,192
$
34,949
0.7
2.5
Used vehicle retail
$
21,188
$
21,355
(0.8)
1.2
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,821
$
1,811
0.6
2.5
Used vehicle retail sales
1,414
1,483
(4.7)
(3.2)
Used vehicle wholesale sales
(6)
50
(112.0)
(119.8)
Total used
974
1,054
(7.6)
(6.4)
Finance, insurance and other, net (per retail unit)
$
1,424
$
1,383
3.0
4.0
OTHER:
SG&A expenses
$
588,347
$
592,687
(0.7)
0.7
Adjusted SG&A expenses(1)
$
589,249
$
586,983
0.4
1.8
SG&A as % revenues
11.3
11.0
Adjusted SG&A as % revenues (1)
11.4
10.9
SG&A as % gross profit
74.6
74.2
Adjusted SG&A as % gross profit (1)
74.7
73.4
Operating margin %
3.3
3.3
Adjusted operating margin % (1)
3.3
3.5
Pretax margin %
2.2
2.3
Adjusted pretax margin % (1)
2.2
2.4
INTEREST EXPENSE:
Floorplan interest expense
$
(25,168)
$
(22,603)
11.3
12.5
Floorplan assistance
22,185
23,839
(6.9)
(6.7)
Net floorplan (expense) income
$
(2,983)
$
1,236
(341.3)
(358.0)
Other interest expense, net
$
(34,314)
$
(33,634)
2.0
2.4
(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,
2017
2016
% Increase/
(Decrease)
REVENUES:
New vehicle retail sales
$ 1,140,004
$ 1,185,994
(3.9)
Used vehicle retail sales
535,010
566,676
(5.6)
Used vehicle wholesale sales
66,221
61,222
8.2
Total used
601,231
627,898
(4.2)
Parts and service
282,293
267,248
5.6
Finance, insurance and other, net
93,879
94,601
(0.8)
Total
$ 2,117,407
$ 2,175,741
(2.7)
GROSS MARGIN %:
New vehicle retail sales
5.0
5.1
Used vehicle retail sales
6.8
7.0
Used vehicle wholesale sales
0.4
0.0
Total used
6.1
6.3
Parts and service
53.8
54.1
Finance, insurance and other, net
100.0
100.0
Total
16.0
15.6
GROSS PROFIT:
New vehicle retail sales
$
56,994
$
61,049
(6.6)
Used vehicle retail sales
36,641
39,778
(7.9)
Used vehicle wholesale sales
248
23
978.3
Total used
36,889
39,801
(7.3)
Parts and service
151,781
144,602
5.0
Finance, insurance and other, net
93,879
94,601
(0.8)
Total
$
339,543
$
340,053
(0.1)
UNITS SOLD:
Retail new vehicles sold
30,675
32,534
(5.7)
Retail used vehicles sold
25,134
26,430
(4.9)
Wholesale used vehicles sold
9,662
9,326
3.6
Total used
34,796
35,756
(2.7)
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
37,164
$
36,454
1.9
Used vehicle retail
$
21,286
$
21,441
(0.7)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,858
$
1,876
(1.0)
Used vehicle retail sales
1,458
1,505
(3.1)
Used vehicle wholesale sales
26
2
1,200.0
Total used
1,060
1,113
(4.8)
Finance, insurance and other, net (per retail unit)
$
1,682
$
1,604
4.9
OTHER:
SG&A expenses
$
242,734
$
240,987
0.7
Adjusted SG&A expenses(2)
$
242,091
$
237,968
1.7
SG&A as % revenues
11.5
11.1
Adjusted SG&A as % revenues (2)
11.4
10.9
SG&A as % gross profit
71.5
70.9
Adjusted SG&A as % gross profit (2)
71.3
70.0
Operating margin %
4.0
4.0
Adjusted operating margin % (2)
4.1
4.2
Six Months Ended June 30,
2017
2016
% Increase/
(Decrease)
REVENUES:
New vehicle retail sales
$ 2,158,251
$ 2,267,346
(4.8)
Used vehicle retail sales
1,056,956
1,116,531
(5.3)
Used vehicle wholesale sales
136,766
127,983
6.9
Total used
1,193,722
1,244,514
(4.1)
Parts and service
553,453
527,383
4.9
Finance, insurance and other, net
179,269
183,233
(2.2)
Total
$ 4,084,695
$ 4,222,476
(3.3)
GROSS MARGIN %:
New vehicle retail sales
5.0
5.0
Used vehicle retail sales
7.1
7.4
Used vehicle wholesale sales
(0.1)
1.0
Total used
6.2
6.7
Parts and service
53.8
54.4
Finance, insurance and other, net
100.0
100.0
Total
16.2
15.8
GROSS PROFIT:
New vehicle retail sales
$
108,198
$
114,285
(5.3)
Used vehicle retail sales
74,576
82,131
(9.2)
Used vehicle wholesale sales
(95)
1,264
(107.5)
Total used
74,481
83,395
(10.7)
Parts and service
297,781
286,664
3.9
Finance, insurance and other, net
179,269
183,233
(2.2)
Total
$
659,729
$
667,577
(1.2)
UNITS SOLD:
Retail new vehicles sold
58,173
62,596
(7.1)
Retail used vehicles sold
50,063
52,787
(5.2)
Wholesale used vehicles sold
19,643
19,439
1.0
Total used
69,706
72,226
(3.5)
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
37,101
$
36,222
2.4
Used vehicle retail
$
21,113
$
21,152
(0.2)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,860
$
1,826
1.9
Used vehicle retail sales
1,490
1,556
(4.2)
Used vehicle wholesale sales
(5)
65
(107.7)
Total used
1,069
1,155
(7.4)
Finance, insurance and other, net (per retail unit)
$
1,656
$
1,588
4.3
OTHER:
SG&A expenses
$
478,685
$
482,012
(0.7)
Adjusted SG&A expenses(2)
$
479,875
$
476,174
0.8
SG&A as % revenues
11.7
11.4
Adjusted SG&A as % revenues (2)
11.7
11.3
SG&A as % gross profit
72.6
72.2
Adjusted SG&A as % gross profit (2)
72.7
71.3
Operating margin %
3.9
3.9
Adjusted operating margin % (2)
3.8
4.0
(1) Same store amounts include the results for the identical months in each period presented in the comparison, commencing with the first full month we owned the dealership and, in the case of dispositions, ending with the last full month we owned it. Same store results also include the activities of our corporate office.
(2) See the section of this release entitled "Non-GAAP Financial Measures" and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.
Group 1 Automotive, Inc.
Additional Information - Same Store U.K. (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended June 30,
2017
2016
% Increase/
Constant Currency (2)
(Decrease)
% Increase/ (Decrease)
REVENUES:
New vehicle retail sales
$ 226,002
$ 259,904
(13.0)
(2.6)
Used vehicle retail sales
121,817
120,775
0.9
13.1
Used vehicle wholesale sales
29,604
32,669
(9.4)
1.5
Total used
151,421
153,444
(1.3)
10.6
Parts and service
35,900
39,566
(9.3)
1.7
Finance, insurance and other, net
9,394
9,513
(1.3)
10.6
Total
$ 422,717
$ 462,427
(8.6)
2.5
GROSS MARGIN %:
New vehicle retail sales
5.9
5.9
Used vehicle retail sales
5.2
5.5
Used vehicle wholesale sales
(2.2)
(0.3)
Total used
3.7
4.3
Parts and service
57.7
56.3
Finance, insurance and other, net
100.0
100.0
Total
11.6
11.6
GROSS PROFIT:
New vehicle retail sales
$
13,424
$
15,342
(12.5)
(2.1)
Used vehicle retail sales
6,335
6,694
(5.4)
6.3
Used vehicle wholesale sales
(661)
(97)
(581.4)
(641.0)
Total used
5,674
6,597
(14.0)
(3.1)
Parts and service
20,704
22,262
(7.0)
4.2
Finance, insurance and other, net
9,394
9,513
(1.3)
10.6
Total
$
49,196
$
53,714
(8.4)
2.6
UNITS SOLD:
Retail new vehicles sold
7,630
7,741
(1.4)
Retail used vehicles sold
5,329
4,860
9.7
Wholesale used vehicles sold
3,883
3,879
0.1
Total used
9,212
8,739
5.4
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
29,620
$
33,575
(11.8)
(1.1)
Used vehicle retail
$
22,859
$
24,851
(8.0)
3.2
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,759
$
1,982
(11.3)
(0.7)
Used vehicle retail sales
1,189
1,377
(13.7)
(3.1)
Used vehicle wholesale sales
(170)
(25)
(580.0)
(640.2)
Total used
616
755
(18.4)
(8.1)
Finance, insurance and other, net (per retail unit)
$
725
$
755
(4.0)
7.5
OTHER:
SG&A expenses
$
40,612
$
41,306
(1.7)
10.2
Adjusted SG&A expenses(2)
$
40,324
$
41,306
(2.4)
9.5
SG&A as % revenues
9.6
8.9
Adjusted SG&A as % revenues (2)
9.5
8.9
SG&A as % gross profit
82.6
76.9
Adjusted SG&A as % gross profit (2)
82.0
76.9
Operating margin %
1.6
2.3
Adjusted operating margin % (2)
1.7
2.3
Six Months Ended June 30,
2017
2016
% Increase/
Constant Currency (2)
(Decrease)
% Increase/ (Decrease)
REVENUES:
New vehicle retail sales
$ 448,307
$ 492,143
(8.9)
3.7
Used vehicle retail sales
215,868
221,449
(2.5)
10.8
Used vehicle wholesale sales
54,000
61,469
(12.2)
(0.2)
Total used
269,868
282,918
(4.6)
8.4
Parts and service
64,119
69,672
(8.0)
4.6
Finance, insurance and other, net
17,012
17,704
(3.9)
9.2
Total
$ 799,306
$ 862,437
(7.3)
5.4
GROSS MARGIN %:
New vehicle retail sales
5.8
5.8
Used vehicle retail sales
5.1
5.4
Used vehicle wholesale sales
(0.3)
0.8
Total used
4.0
4.4
Parts and service
57.3
54.9
Finance, insurance and other, net
100.0
100.0
Total
11.4
11.3
GROSS PROFIT:
New vehicle retail sales
$
26,123
$
28,786
(9.3)
3.2
Used vehicle retail sales
11,078
11,892
(6.8)
5.9
Used vehicle wholesale sales
(162)
500
(132.4)
(132.2)
Total used
10,916
12,392
(11.9)
0.4
Parts and service
36,763
38,220
(3.8)
9.3
Finance, insurance and other, net
17,012
17,704
(3.9)
9.2
Total
$
90,814
$
97,102
(6.5)
6.3
UNITS SOLD:
Retail new vehicles sold
15,280
14,625
4.5
Retail used vehicles sold
9,921
9,075
9.3
Wholesale used vehicles sold
7,244
7,240
0.1
Total used
17,165
16,315
5.2
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
29,339
$
33,651
(12.8)
(0.7)
Used vehicle retail
$
21,759
$
24,402
(10.8)
1.4
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,710
$
1,968
(13.1)
(1.3)
Used vehicle retail sales
1,117
1,310
(14.7)
(3.1)
Used vehicle wholesale sales
(22)
69
(131.9)
(132.2)
Total used
636
760
(16.3)
(4.6)
Finance, insurance and other, net (per retail unit)
$
675
$
747
(9.6)
2.7
OTHER:
SG&A expenses
$
71,800
$
73,323
(2.1)
11.3
Adjusted SG&A expenses(2)
$
71,512
$
72,762
(1.7)
11.7
SG&A as % revenues
9.0
8.5
Adjusted SG&A as % revenues (2)
8.9
8.4
SG&A as % gross profit
79.1
75.5
Adjusted SG&A as % gross profit (2)
78.7
74.9
Operating margin %
2.0
2.4
Adjusted operating margin % (2)
2.0
2.5
(1) Same store amounts include the results for the identical months in each period presented in the comparison, commencing with the first full month we owned the dealership and, in the case of dispositions, ending with the last full month we owned it. Same store results also include the activities of our corporate office.
(2) See the section of this release entitled "Non-GAAP Financial Measures " and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.
Group 1 Automotive, Inc.
Additional Information - Same Store Brazil (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended June 30,
2017
2016
% Increase/
Constant Currency (2)
(Decrease)
% Increase/ (Decrease)
REVENUES:
New vehicle retail sales
$
72,041
$
70,868
1.7
(6.7)
Used vehicle retail sales
20,874
15,677
33.2
22.3
Used vehicle wholesale sales
2,419
618
291.4
260.4
Total used
23,293
16,295
42.9
31.4
Parts and service
11,605
9,735
19.2
9.5
Finance, insurance and other, net
2,065
1,512
36.6
25.4
Total
$ 109,004
$
98,410
10.8
1.7
GROSS MARGIN %:
New vehicle retail sales
5.7
5.4
Used vehicle retail sales
7.2
7.1
Used vehicle wholesale sales
8.2
7.3
Total used
7.3
7.1
Parts and service
46.3
38.7
Finance, insurance and other, net
100.0
100.0
Total
12.1
10.5
GROSS PROFIT:
New vehicle retail sales
$
4,106
$
3,861
6.3
(2.4)
Used vehicle retail sales
1,505
1,115
35.0
24.2
Used vehicle wholesale sales
199
45
342.2
308.5
Total used
1,704
1,160
46.9
35.2
Parts and service
5,368
3,769
42.4
30.6
Finance, insurance and other, net
2,065
1,512
36.6
25.4
Total
$
13,243
$
10,302
28.5
18.0
UNITS SOLD:
Retail new vehicles sold
2,130
2,331
(8.6)
Retail used vehicles sold
969
931
4.1
Wholesale used vehicles sold
234
147
59.2
Total used
1,203
1,078
11.6
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
33,822
$
30,402
11.2
2.1
Used vehicle retail
$
21,542
$
16,839
27.9
17.5
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,928
$
1,656
16.4
6.8
Used vehicle retail sales
1,553
1,198
29.6
19.3
Used vehicle wholesale sales
850
306
177.8
156.6
Total used
1,416
1,076
31.6
21.1
Finance, insurance and other, net (per retail unit)
$
666
$
464
43.5
32.0
OTHER:
SG&A expenses
$
11,695
$
9,551
22.4
12.4
SG&A as % revenues
10.7
9.7
SG&A as % gross profit
88.3
92.7
Operating margin %
1.1
0.4
Six Months Ended June 30,
2017
2016
% Increase/
Constant Currency (2)
(Decrease)
% Increase/ (Decrease)
REVENUES:
New vehicle retail sales
$ 125,953
$ 128,078
(1.7)
(14.8)
Used vehicle retail sales
41,279
32,077
28.7
10.5
Used vehicle wholesale sales
5,430
1,060
412.3
344.4
Total used
46,709
33,137
41.0
21.1
Parts and service
21,849
17,868
22.3
5.8
Finance, insurance and other, net
3,755
2,583
45.4
26.0
Total
$ 198,266
$ 181,666
9.1
(5.6)
GROSS MARGIN %:
New vehicle retail sales
5.9
5.6
Used vehicle retail sales
7.3
4.9
Used vehicle wholesale sales
8.1
7.5
Total used
7.4
5.0
Parts and service
46.0
39.1
Finance, insurance and other, net
100.0
100.0
Total
12.4
10.2
GROSS PROFIT:
New vehicle retail sales
$
7,395
$
7,211
2.6
(11.5)
Used vehicle retail sales
3,019
1,585
90.5
67.1
Used vehicle wholesale sales
438
80
447.5
376.9
Total used
3,457
1,665
107.6
81.9
Parts and service
10,057
6,989
43.9
24.3
Finance, insurance and other, net
3,755
2,583
45.4
26.0
Total
$
24,664
$
18,448
33.7
15.6
UNITS SOLD:
Retail new vehicles sold
3,709
4,538
(18.3)
Retail used vehicles sold
1,897
1,979
(4.1)
Wholesale used vehicles sold
481
351
37.0
Total used
2,378
2,330
2.1
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
33,959
$
28,223
20.3
4.2
Used vehicle retail
$
21,760
$
16,209
34.2
15.2
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,994
$
1,589
25.5
8.3
Used vehicle retail sales
1,591
801
98.6
74.4
Used vehicle wholesale sales
911
228
299.6
248.0
Total used
1,454
715
103.4
78.3
Finance, insurance and other, net (per retail unit)
$
670
$
396
69.2
46.5
OTHER:
SG&A expenses
$
21,947
$
17,429
25.9
8.8
SG&A as % revenues
11.1
9.6
SG&A as % gross profit
89.0
94.5
Operating margin %
1.0
0.2
(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,
2017
2016
% Increase/
Constant Currency (2)
(Decrease)
% Increase/ (Decrease)
REVENUES:
New vehicle retail sales
$ 1,438,047
$ 1,516,766
(5.2)
(3.8)
Used vehicle retail sales
677,701
703,128
(3.6)
(1.8)
Used vehicle wholesale sales
98,244
94,509
4.0
7.5
Total used
775,945
797,637
(2.7)
(0.7)
Parts and service
329,798
316,549
4.2
5.3
Finance, insurance and other, net
105,338
105,626
(0.3)
0.6
Total
$ 2,649,128
$ 2,736,578
(3.2)
(1.7)
GROSS MARGIN %:
New vehicle retail sales
5.2
5.3
Used vehicle retail sales
6.6
6.8
Used vehicle wholesale sales
(0.2)
--
Total used
5.7
6.0
Parts and service
53.9
53.9
Finance, insurance and other, net
100.0
100.0
Total
15.2
14.8
GROSS PROFIT:
New vehicle retail sales
$
74,524
$
80,252
(7.1)
(5.6)
Used vehicle retail sales
44,481
47,587
(6.5)
(5.1)
Used vehicle wholesale sales
(214)
(29)
(637.9)
(894.7)
Total used
44,267
47,558
(6.9)
(5.7)
Parts and service
177,853
170,633
4.2
5.4
Finance, insurance and other, net
105,338
105,626
(0.3)
0.6
Total
$
401,982
$
404,069
(0.5)
0.7
UNITS SOLD:
Retail new vehicles sold
40,435
42,606
(5.1)
Retail used vehicles sold
31,432
32,221
(2.4)
Wholesale used vehicles sold
13,779
13,352
3.2
Total used
45,211
45,573
(0.8)
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
35,564
$
35,600
(0.1)
1.4
Used vehicle retail
$
21,561
$
21,822
(1.2)
0.7
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,843
$
1,884
(2.2)
(0.5)
Used vehicle retail sales
1,415
1,477
(4.2)
(2.8)
Used vehicle wholesale sales
(16)
(2)
(700.0)
(863.9)
Total used
979
1,044
(6.2)
(4.9)
Finance, insurance and other, net (per retail unit)
$
1,466
$
1,412
3.8
4.8
OTHER:
SG&A expenses
$
295,041
$
291,844
1.1
2.5
Adjusted SG&A expenses(2)
$
294,110
$
288,825
1.8
3.2
SG&A as % revenues
11.1
10.7
Adjusted SG&A as % revenues (2)
11.1
10.6
SG&A as % gross profit
73.4
72.2
Adjusted SG&A as % gross profit (2)
73.2
71.5
Operating margin %
3.5
3.6
Adjusted operating margin % (2)
3.6
3.8
Six Months Ended June 30,
2017
2016
% Increase/
Constant Currency (2)
(Decrease)
% Increase/ (Decrease)
REVENUES:
New vehicle retail sales
$ 2,732,511
$ 2,887,567
(5.4)
(3.8)
Used vehicle retail sales
1,314,103
1,370,057
(4.1)
(2.4)
Used vehicle wholesale sales
196,196
190,512
3.0
6.5
Total used
1,510,299
1,560,569
(3.2)
(1.3)
Parts and service
639,421
614,923
4.0
4.9
Finance, insurance and other, net
200,036
203,520
(1.7)
(0.8)
Total
$ 5,082,267
$ 5,266,579
(3.5)
(1.9)
GROSS MARGIN %:
New vehicle retail sales
5.2
5.2
Used vehicle retail sales
6.7
7.0
Used vehicle wholesale sales
0.1
1.0
Total used
5.9
6.2
Parts and service
53.9
54.0
Finance, insurance and other, net
100.0
100.0
Total
15.3
14.9
GROSS PROFIT:
New vehicle retail sales
$
141,716
$
150,282
(5.7)
(4.0)
Used vehicle retail sales
88,673
95,608
(7.3)
(6.0)
Used vehicle wholesale sales
181
1,844
(90.2)
(93.3)
Total used
88,854
97,452
(8.8)
(7.7)
Parts and service
344,601
331,873
3.8
4.9
Finance, insurance and other, net
200,036
203,520
(1.7)
(0.8)
Total
$
775,207
$
783,127
(1.0)
0.1
UNITS SOLD:
Retail new vehicles sold
77,162
81,759
(5.6)
Retail used vehicles sold
61,881
63,841
(3.1)
Wholesale used vehicles sold
27,368
27,030
1.3
Total used
89,249
90,871
(1.8)
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
35,413
$
35,318
0.3
1.9
Used vehicle retail
$
21,236
$
21,460
(1.0)
0.7
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,837
$
1,838
(0.1)
1.7
Used vehicle retail sales
1,433
1,498
(4.3)
(3.1)
Used vehicle wholesale sales
7
68
(89.7)
(93.4)
Total used
996
1,072
(7.1)
(6.0)
Finance, insurance and other, net (per retail unit)
$
1,439
$
1,398
2.9
3.9
OTHER:
SG&A expenses
$
572,432
$
572,764
(0.1)
1.1
Adjusted SG&A expenses(2)
$
573,334
$
566,365
1.2
2.4
SG&A as % revenues
11.3
10.9
Adjusted SG&A as % revenues (2)
11.3
10.8
SG&A as % gross profit
73.8
73.1
Adjusted SG&A as % gross profit (2)
74.0
72.3
Operating margin %
3.5
3.5
Adjusted operating margin % (2)
3.4
3.7
(1) Same store amounts include the results for the identical months in each period presented in the comparison, commencing with the first full month we owned the dealership and, in the case of dispositions, ending with the last full month we owned it. Same store results also include the activities of our corporate office.
(2) See the section of this release entitled "Non-GAAP Financial Measures" and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - U.S.
(Unaudited)
(Dollars in thousands)
Three Months Ended June 30,
2017
2016
% Increase/
(Decrease)
SG&A RECONCILIATION:
As reported
$ 243,844
$ 245,389
(0.6)
Pre-tax adjustments:
Catastrophic events
(643)
(2,769)
Loss on real estate and dealership transactions -
(250)
Adjusted SG&A (1)
$ 243,201
$ 242,370
0.3
SG&A AS % REVENUES:
Unadjusted
11.5
11.1
Adjusted (1)
11.5
11.0
SG&A AS % GROSS PROFIT:
Unadjusted
71.6
71.2
Adjusted (1)
71.4
70.3
OPERATING MARGIN %:
Unadjusted
4.0
4.0
Adjusted (1), (2)
4.0
4.1
PRETAX MARGIN %:
Unadjusted
2.6
2.8
Adjusted (1), (2)
2.7
3.0
SAME STORE SG&A RECONCILIATION:
As reported
$ 242,734
$ 240,987
0.7
Pre-tax adjustments:
Catastrophic events
(643)
(2,769)
Loss on real estate and dealership transactions -
(250)
Adjusted Same Store SG&A (1)
$ 242,091
$ 237,968
1.7
SAME STORE SG&A AS % REVENUES:
Unadjusted
11.5
11.1
Adjusted (1)
11.4
10.9
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted
71.5
70.9
Adjusted (1)
71.3
70.0
SAME STORE OPERATING MARGIN %:
Unadjusted
4.0
4.0
Adjusted (1), (3)
4.1
4.2
Six Months Ended June 30,
2017
2016
% Increase/
(Decrease)
SG&A RECONCILIATION:
As reported
$ 480,117
$ 491,229
(2.3)
Pre-tax adjustments:
Catastrophic events
(643)
(5,423)
Gain on real estate and dealership transactions -
680
Acquisition costs
-
(30)
Legal settlements (4)
1,833
-
Adjusted SG&A (1)
$ 481,307
$ 486,456
(1.1)
SG&A AS % REVENUES:
Unadjusted
11.7
11.5
Adjusted (1)
11.8
11.3
SG&A AS % OF GROSS PROFIT:
Unadjusted
72.6
72.5
Adjusted (1)
72.8
71.8
OPERATING MARGIN %:
Unadjusted
3.8
3.8
Adjusted (1), (2)
3.8
4.0
PRETAX MARGIN %:
Unadjusted
2.5
2.6
Adjusted (1), (2)
2.5
2.8
SAME STORE SG&A RECONCILIATION:
As reported
$ 478,685
$ 482,012
(0.7)
Pre-tax adjustments:
Catastrophic events
(643)
(5,423)
Loss on real estate and dealership transactions -
(385)
Acquisition costs
-
(30)
Legal settlements (4)
1,833
-
Adjusted Same Store SG&A (1)
$ 479,875
$ 476,174
0.8
SAME STORE SG&A AS % REVENUES:
Unadjusted
11.7
11.4
Adjusted (1)
11.7
11.3
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted
72.6
72.2
Adjusted (1)
72.7
71.3
SAME STORE OPERATING MARGIN %:
Unadjusted
3.9
3.9
Adjusted (1), (3)
3.8
4.0
(1) See the section of this release entitled "Non-GAAP Financial Measures " for information regarding non-GAAP financial measures and certain selected items that the Company believes impact comparability of financial results between reporting periods.
(2) Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $1,024 and $1,534 for the three and six months ended June 30, 2016, respectively.
(3) Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of
$1,024 and $1,534 for the three and six months ended June 30, 2016, respectively.
(4) For the six months ended June 30, 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)
Three Months Ended June 30,
2017
2016
% Increase/
(Decrease)
SG&A RECONCILIATION:
As reported
$ 42,456
$ 42,109
0.8
Pre-tax adjustments:
Acquisition costs
(288)
-
Adjusted SG&A (1)
$ 42,168
$ 42,109
0.1
SG&A AS % REVENUES:
Unadjusted
9.7
9.0
Adjusted (1)
9.6
9.0
SG&A AS % GROSS PROFIT:
Unadjusted
83.4
77.5
Adjusted (1)
82.8
77.5
OPERATING MARGIN %
Unadjusted
1.5
2.2
Adjusted (1)
1.6
2.2
PRETAX MARGIN %:
Unadjusted
1.1
1.7
Adjusted (1)
1.2
1.7
SAME STORE SG&A RECONCILIATION:
As reported
$ 40,612
$ 41,306
(1.7)
Pre-tax adjustments:
Acquisition costs
(288)
-
Adjusted Same Store SG&A (1) $ 40,324
$ 41,306
(2.4)
SAME STORE SG&A AS % REVENUES:
Unadjusted
9.6
8.9
Adjusted (1)
9.5
8.9
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted
82.6
76.9
Adjusted (1)
82.0
76.9
SAME STORE OPERATING MARGIN %:
Unadjusted
1.6
2.3
Adjusted (1)
1.7
2.3
Six Months Ended June 30,
2017
2016
% Increase/
(Decrease)
SG&A RECONCILIATION:
As reported
$ 84,080
$ 79,545
5.7
Pre-tax adjustments:
Acquisition costs
(288)
(561)
Adjusted SG&A (1)
$ 83,792
$ 78,984
6.1
SG&A AS % REVENUES:
Unadjusted
9.5
8.8
Adjusted (1)
9.4
8.8
SG&A AS % OF GROSS PROFIT:
Unadjusted
83.1
78.7
Adjusted (1)
82.8
78.1
OPERATING MARGIN %:
Unadjusted
1.5
2.0
Adjusted (1)
1.6
2.1
PRETAX MARGIN %:
Unadjusted
1.2
1.5
Adjusted (1)
1.2
1.6
SAME STORE SG&A RECONCILIATION:
As reported
$ 71,800
$ 73,323
(2.1)
Pre-tax adjustments:
Acquisition costs
(288)
(561)
Adjusted Same Store SG&A (1) $ 71,512
$ 72,762
(1.7)
SAME STORE SG&A AS % REVENUES:
Unadjusted
9.0
8.5
Adjusted (1)
8.9
8.4
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted
79.1
75.5
Adjusted (1)
78.7
74.9
SAME STORE OPERATING MARGIN %:
Unadjusted
2.0
2.4
Adjusted (1)
2.0
2.5
(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.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - Brazil
(Unaudited)
(Dollars in thousands)
Six Months Ended June 30,
2017
2016
% Increase/
(Decrease)
SG&A RECONCILIATION:
As reported
$ 24,150
$ 21,913
10.2
Pre-tax adjustments:
Loss on real estate and dealership transactions -
(371)
Adjusted SG&A (1)
$ 24,150
$ 21,542
12.1
SG&A AS % REVENUES:
Unadjusted
11.4
10.8
Adjusted (1)
11.4
10.7
SG&A AS % OF GROSS PROFIT:
Unadjusted
92.5
105.2
Adjusted (1)
92.5
103.4
OPERATING MARGIN %:
Unadjusted
0.6
(1.0)
Adjusted (1), (2)
0.6
(0.6)
PRETAX MARGIN %:
Unadjusted
0.4
(1.1)
Adjusted (1), (2)
0.4
(0.7)
(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 six months ended June 30, 2016.
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,
2017
2016
% Increase/
(Decrease)
NET INCOME RECONCILIATION:
As reported
$
39,133
$
46,580
(16.0)
Pre-tax adjustments:
Catastrophic events
Pre-tax
643
2,769
Tax impact
(250)
(1,042)
Loss on real estate and dealership transactions
Pre-tax
-
250
Tax impact
-
(94)
Acquisition costs
Pre-tax
288
-
Tax impact
-
-
Non-cash asset impairment
Pre-tax
-
1,024
Tax impact
-
(391)
Foreign deferred income tax benefit
Tax impact
-
(1,686)
Adjusted net income (1)
$
39,814
$
47,410
(16.0)
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED
COMMON SHARES RECONCILIATION:
Adjusted net income (1)
$
39,814
$
47,410
(16.0)
Less: Adjusted earnings allocated to participating securities 1,413
1,918
(26.3)
Adjusted net income available to diluted common shares (1)
$
38,401
$
45,492
(15.6)
DILUTED INCOME PER COMMON SHARE RECONCILIATION:
As reported
$
1.84
$
2.12
(13.2)
After-tax adjustments:
Catastrophic events
0.02
0.08
Loss on real estate and dealership transactions
-
0.01
Acquisition costs
0.01
-
Non-cash asset impairment
-
0.03
Foreign deferred income tax benefit
-
(0.08)
Adjusted diluted income per share (1)
$
1.87
$
2.16
(13.4)
SG&A RECONCILIATION:
As reported
$ 298,568
$ 299,022
(0.2)
Pre-tax adjustments:
Catastrophic events
(643)
(2,769)
Loss on real estate and dealership transactions
-
(250)
Acquisition costs
(288)
-
Adjusted SG&A (1)
$ 297,637
$ 296,003
0.6
SG&A AS % REVENUES:
Unadjusted
11.2
10.7
Adjusted (1)
11.1
10.6
SG&A AS % GROSS PROFIT:
Unadjusted
73.7
72.9
Adjusted (1)
73.5
72.2
OPERATING MARGIN %:
Unadjusted
3.5
3.5
Adjusted (1), (2)
3.5
3.6
PRETAX MARGIN %:
Unadjusted
2.3
2.5
Adjusted (1), (2)
2.3
2.6
SAME STORE SG&A RECONCILIATION:
As reported
$ 295,041
$ 291,844
1.1
Pre-tax adjustments:
Catastrophic events
(643)
(2,769)
Loss on real estate and dealership transactions
-
(250)
Acquisition costs
(288)
-
Adjusted Same Store SG&A (1)
$ 294,110
$ 288,825
1.8
SAME STORE SG&A AS % REVENUES:
Unadjusted
11.1
10.7
Adjusted (1)
11.1
10.6
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted
73.4
72.2
Adjusted (1)
73.2
71.5
SAME STORE OPERATING MARGIN %:
Unadjusted
3.5
3.6
Adjusted (1), (3)
3.6
3.8
Six Months Ended June 30,
2017
2016
% Increase/
(Decrease)
NET INCOME RECONCILIATION:
As reported
$
73,072
$
80,871
(9.6)
Adjustments:
Catastrophic events
Pre-tax
643
5,423
Tax impact
(250)
(2,038)
Loss on real estate and dealership transactions
Pre-tax
-
113
Tax impact
-
255
Acquisition costs
Pre-tax
288
591
Tax impact
-
(11)
Legal settlements (4)
Pre-tax
(1,833)
-
Tax impact
696
-
Non-cash asset impairment
Pre-tax
-
1,533
Tax impact
-
(586)
Foreign deferred income tax benefit
Tax impact
-
(1,686)
Adjusted net income (1)
$
72,616
$
84,465
(14.0)
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED
COMMON SHARES RECONCILIATION:
Adjusted net income (1)
$
72,616
$
84,465
(14.0)
Less: Adjusted earnings allocated to participating securities 2,628
3,367
(21.9)
Adjusted net income available to diluted common shares (1)
$
69,988
$
81,098
(13.7)
DILUTED INCOME PER COMMON SHARE RECONCILIATION:
As reported
$
3.42
$
3.57
(4.2)
After-tax adjustments:
Catastrophic events
0.02
0.15
Loss on real estate and dealership transactions
-
0.02
Acquisition costs
0.01
0.02
Legal settlements (4)
(0.05)
-
Non-cash asset impairment
-
0.04
Foreign deferred income tax benefit
-
(0.07)
Adjusted diluted income per share (1)
$
3.40
$
3.73
(8.8)
SG&A RECONCILIATION:
As reported
$ 588,347
$ 592,687
(0.7)
Pre-tax adjustments:
Catastrophic events
(643)
(5,423)
Gain on real estate and dealership transactions
-
310
Acquisition costs
(288)
(591)
Legal settlements (4)
1,833
-
Adjusted SG&A (1)
$ 589,249
$ 586,983
0.4
SG&A AS % REVENUES:
Unadjusted
11.3
11.0
Adjusted (1)
11.4
10.9
SG&A AS % OF GROSS PROFIT:
Unadjusted
74.6
74.2
Adjusted (1)
74.7
73.4
OPERATING MARGIN %:
Unadjusted
3.3
3.3
Adjusted (1), (2)
3.3
3.5
PRETAX MARGIN %:
Unadjusted
2.2
2.3
Adjusted (1), (2)
2.2
2.4
SAME STORE SG&A RECONCILIATION:
As reported
$ 572,432
$ 572,764
(0.1)
Pre-tax adjustments:
Catastrophic events
(643)
(5,423)
Loss on real estate and dealership transactions
-
(385)
Acquisition costs
(288)
(591)
Legal settlements (4)
1,833
-
Adjusted Same Store SG&A (1)
$ 573,334
$ 566,365
1.2
SAME STORE SG&A AS % REVENUES:
Unadjusted
11.3
10.9
Adjusted (1)
11.3
10.8
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted
73.8
73.1
Adjusted (1)
74.0
72.3
SAME STORE OPERATING MARGIN %:
Unadjusted
3.5
3.5
Adjusted (1), (3)
3.4
3.7
(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 $1,024 and $1,956 for the three and six months ended June 30, 2016, respectively.
(3) Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $1,024 and $1,534 for the three and six months ended June 30, 2016, respectively.
(4) For the six months ended June 30, 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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