GPI
$61.77
Group 1 Automotive
$2.32
3.90%
Earnings Details
4th Quarter December 2018
Tuesday, February 5, 2019 7:07:00 AM
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Summary

Group 1 Automotive Misses

Group 1 Automotive (GPI) reported 4th Quarter December 2018 earnings of $2.31 per share on revenue of $2.9 billion. The consensus earnings estimate was $2.45 per share. The Earnings Whisper number was $2.32 per share. Revenue fell 0.4% 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
$2.31
Earnings Whisper
$2.32
Consensus Estimate
$2.45
Reported Revenue
$2.91 Bil
Revenue Estimate
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Group 1 Automotive Reports Fourth Quarter & Full Year 2018 Financial Results

HOUSTON, Feb. 5, 2019 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), ("Group 1" or the "Company"), an international, Fortune 500 automotive retailer, today reported 2018 fourth quarter net income of $30.7 million; diluted earnings per common share of $1.62; adjusted net income (a non-GAAP measure) of $43.8 million; and adjusted diluted earnings per common share (a non-GAAP measure) of $2.31.

As shown in the attached non-GAAP reconciliation tables, the 2018 fourth quarter adjusted results (non-GAAP measures) exclude approximately $13.1 million of net after-tax adjustments, or $0.69 per common share. These adjustments primarily reflect annual intangible asset testing, which resulted in non-cash franchise rights asset impairments of approximately $12.7 million after-tax, or $0.67 per share. 

For the full year of 2018, net income decreased 26.1 percent from the comparable prior-year period, to $157.8 million; and diluted earnings per common share decreased 22.3 percent, to $7.83. Full year 2018 adjusted net income increased 9.8 percent, to $179.6 million; and adjusted diluted earnings per common share increased 15.3 percent, to an all-time high of $8.91. Total revenue grew 4.3 percent to a record $11.6 billion.

Full year and fourth quarter 2017 net after-tax adjustments are primarily explained by exclusion of benefits associated with U.S. tax reform legislation, which generated a gain of $73.0 million, or $3.45 per common share (see attached non-GAAP reconciliation tables for additional details). 

"We are pleased with our 2018 performance that resulted in all-time records in revenue of $11.6 billion and adjusted diluted earnings per share of $8.91," said Earl J. Hesterberg, Group 1's president and chief executive officer. "We faced difficult new vehicle sales comparisons due to unprecedented replacement demand following Hurricane Harvey last year, as well as new vehicle supply shortages this year in the U.K. caused by Worldwide Harmonised Light Vehicle Test Procedure ("WLTP") legislation. Our strong performance in used vehicles, parts and service, and F&I allowed us to deliver positive Same Store gross profit growth despite these very significant headwinds in our new vehicle business."

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

  • Total revenue was nearly flat at $2.9 billion against difficult prior year Hurricane Harvey driven comparisons and continued disruptions in the U.K. from WLTP legislation.
  • Total gross profit grew 1.5 percent (2.6 percent), to $432.1 million.
  • New vehicle revenues decreased 5.3 percent (decreased 4.1 percent) on 5.5 percent lower unit sales. New vehicle gross profit decreased 9.2 percent (decreased 7.7 percent), to $81.3 million.
  • Retail used vehicle revenues increased 8.8 percent (10.0 percent) on 12.8 percent higher unit sales. Retail used vehicle gross profit increased 1.4 percent (2.4 percent), to $41.1 million.
  • Parts and service gross profit increased 1.3 percent (2.2 percent) on revenue growth of 3.3 percent (4.3 percent).
  • Finance and Insurance (F&I) gross profit PRU increased 5.8 percent (6.8 percent), to $1,582. U.S. F&I gross profit PRU increased $60, or 3.5 percent, to an all-time record of $1,760. Same Store U.S. F&I gross profit PRU increased $70, or 4.1 percent, to an all-time record of $1,767.
  • Selling, General and Administrative (SG&A) expenses as a percent of gross profit increased 230 basis points, to 75.0 percent. Adjusted SG&A expenses as a percent of gross profit increased 220 basis points, to 74.8 percent.

Consolidated Results for Full Year 2018 (year-over-year comparable basis)

  • Total revenue increased 4.3 percent (4.1 percent), to a record $11.6 billion.
  • Total gross profit grew 4.8 percent (4.8 percent).
  • New vehicle gross profit decreased 3.5 percent (decreased 3.2 percent). The Company retailed 170,517 new vehicles in 2018, which represented a one-percent decrease of new vehicle unit sales from 2017.
  • Retail used vehicle gross profit increased 4.7 percent (4.4 percent) on a revenue increase of 13.1 percent (12.6 percent). The Company retailed 147,999 used vehicles in 2018, a 13.9 percent increase over 2017.
  • Parts and service gross profit rose 5.5 percent (5.3 percent) on 5.9 percent (5.8 percent) higher revenues.
  • F&I revenues rose 9.0 percent (8.9 percent). U.S. F&I gross profit PRU increased $63, to $1,710. U.S. Same Store F&I gross profit PRU increased $66, to $1,707.
  • SG&A expenses as a percent of gross profit decreased 70 basis points, to 73.8 percent. Adjusted SG&A expenses as a percent of gross profit increased 90 basis points, to 74.6 percent. Adjusted U.S. SG&A expenses as a percent of gross profit increased 80 basis points, to 71.9 percent.
  • Operating margin decreased 20 basis points to 2.9 percent. Adjusted operating margin decreased 20 basis points to 3.2 percent.

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

  • United States:
    The Company's U.S. operations accounted for 77.9 percent of total revenues and 81.6 percent of total gross profit. Total U.S. revenues were $2.3 billion, a decrease of 0.9 percent, driven by a 4.7 percent decrease in retail new vehicle revenue. New vehicle gross profit PRU decreased $105, or 5.1 percent, to $1,962; and total gross profit grew 0.5 percent, to $352.5 million. New vehicle inventory ended the quarter at 68 days' supply. 
     
    As a reminder, our year-over-year comparisons were significantly influenced by Hurricane Harvey, as our Houston and Beaumont markets' combined new vehicle unit sales declined 16 percent from the fourth quarter 2017. These two markets represent approximately 26 percent of our U.S. new vehicle sales.  
     
    Same Store SG&A expenses as a percent of gross profit increased 150 basis points to 70.5 percent. Adjusted Same Store SG&A expenses as a percent of gross profit increased 130 basis points, to 70.3 percent. 
     
    Same Store operating margin decreased 90 basis points to 3.3 percent. Adjusted operating margin decreased 20 basis points, to 4.0 percent.
     
  • United Kingdom:
    The Company's U.K. operations accounted for 18.0 percent of total revenues and 15.0 percent of total gross profit. Total U.K. revenues increased 3.2 percent (6.3 percent), to $524.0 million, and were driven by double-digit revenue growth across used vehicles, aftersales, and F&I, despite the new vehicle industry decreasing by four percent.  WLTP-related supply disruption continued in the quarter with the biggest impact being in the Audi brand, which historically represents approximately 30 percent of our U.K. new vehicle mix. Audi's new vehicle industry sales declined 46 percent for the quarter.  Total gross profit increased 7.4 percent (11.1 percent), to $64.9 million.   
     
    Same Store SG&A expenses as a percent of gross profit increased 240 basis points to 91.6 percent and Same Store operating margin decreased 50 basis points to 0.3 percent.
     
  • Brazil:
    The Company's Brazilian operations were profitable during the fourth quarter and accounted for 4.1 percent of total revenues and 3.4 percent of total gross profit. The Company's Same Store gross profit grew 10.5 percent on a constant currency basis, driven by revenue growth of 44.2 percent in F&I, 11.8 percent in new vehicles, and 5.3 percent in aftersales.  Same Store F&I gross profit PRU grew 52.6 percent on a constant currency basis. 
     
    Same Store SG&A expenses as a percent of gross profit decreased 900 basis points to 83.4 percent.  Adjusted Same Store SG&A as a percent of gross profit decreased 570 basis points to 83.4 percent. 
     
    Same Store operating margin and Same Store adjusted operating margin increased 650 basis points and 70 basis points respectively, to 1.7 percent.

Share Repurchase Authorization

In the fourth quarter 2018, the Company repurchased 1,313,786 shares at an average price per common share of $57.31 for a total of $75.3 million.  For the full year of 2018, the Company repurchased 2,849,652 shares, or approximately 14 percent of the common shares outstanding at the start of the year, at an average price per common share of $63.75 for a total of $181.7 million. As of February 5, 2019, $49.7 million remains available under the Company's prior common stock share repurchase authorization.

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

Corporate Development

During the fourth quarter 2018, as previously announced, the Company opened the following three add points:

  • Sterling McCall Acura Sugarland, an add point in greater Houston, Texas, which is expected to generate approximately $40 million in annualized revenues;
  • Toyota Aricanduva in São Paulo, Brazil, which is expected to generate approximately $25 million in annualized revenues; and
  • Skoda Southend in East London, U.K., which is expected to generate approximately $20 million in annualized revenues.

During the fourth quarter of 2018, the Company disposed of a Vauxhall franchise in Maidstone, southeast of London (U.K.), as well as a Volvo franchise in Columbus, Georgia.  In January 2019, the Company disposed of a Hyundai franchise in Kansas City, Kansas, as well as a Mazda franchise in Houston, TX.  These four franchises generated approximately $65 million in trailing-twelve-month revenues.  The disposals are consistent with Group 1's strategy of actively managing its dealership portfolio to ensure appropriate returns on invested capital.

During 2018, the Company acquired a total of 17 franchises, which are expected to generate an estimated $615 million in annual revenues. The Company disposed of six franchises that generated approximately $195 million in trailing-twelve-month revenues at the time of disposition.

In January 2019, the Company opened Porsche of El Paso in Texas, which is expected to generate $25 million in annualized revenues.

Fourth Quarter 2018 Earnings Conference Call Details

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

The conference call will be simulcast live on the Internet at www.group1auto.com, then click on 'Investor Relations' and then 'Events' or through this link: http://www.group1corp.com/events. A webcast replay will be available for 30 days.

The conference call will also be available live by dialing in 15 minutes prior to the start of the call at:

Domestic:

1-888-317-6003

International:

1-412-317-6061

Conference ID:

5218141

A telephonic replay will be available following the call through February 12, 2019 by dialing:

Domestic:

1-877-344-7529

International:

1-412-317-0088

Replay ID:

10128118

ABOUT GROUP 1 AUTOMOTIVE, INC.
Group 1 owns and operates 182 automotive dealerships, 237 franchises, and 47 collision centers in the United States, the United Kingdom and Brazil that offer 30 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service contracts; provides automotive maintenance and repair services; and sells vehicle parts.

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

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

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

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

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

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

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

Group 1 Automotive, Inc.

Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)








Three Months Ended December 31,


2018


2017


% Increase/

(Decrease)

REVENUES:






New vehicle retail sales

$

1,572,713


$

1,661,309


(5.3)

Used vehicle retail sales

771,242


709,072


8.8

Used vehicle wholesale sales

86,122


91,809


(6.2)

Parts and service

354,744


343,510


3.3

Finance, insurance and other, net

123,991


114,705


8.1

Total revenues

2,908,812


2,920,405


(0.4)

COST OF SALES:






New vehicle retail sales

1,491,455


1,571,774


(5.1)

Used vehicle retail sales

730,178


668,558


9.2

Used vehicle wholesale sales

86,009


94,199


(8.7)

Parts and service

169,104


160,199


5.6

Total cost of sales

2,476,746


2,494,730


(0.7)

GROSS PROFIT

432,066


425,675


1.5

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

323,847


309,521


4.6

DEPRECIATION AND AMORTIZATION EXPENSE

17,109


15,178


12.7

ASSET IMPAIRMENTS

16,456


9,980


64.9

OPERATING INCOME (LOSS)

74,654


90,996


(18.0)

OTHER EXPENSE:






Floorplan interest expense

(16,547)


(13,713)


20.7

Other interest expense, net

(18,424)


(18,309)


0.6

INCOME (LOSS) BEFORE INCOME TAXES

39,683


58,974


(32.7)

BENEFIT (PROVISION) FOR INCOME TAXES

(8,965)


51,515


(117.4)

NET INCOME (LOSS)

$

30,718


$

110,489


(72.2)

Less: Earnings allocated to participating securities

$

1,096


$

3,718


(70.5)

Earnings available to diluted common shares

$

29,622


$

106,771


(72.3)

DILUTED EARNINGS PER SHARE

$

1.62


$

5.27


(69.3)

Weighted average dilutive common shares outstanding

18,255


20,261


(9.9)

Weighted average participating securities

681


708


(3.8)

Total weighted average shares outstanding

18,936


20,969


(9.7)

 

Group 1 Automotive, Inc.

Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)








Twelve Months Ended December 31,


2018


2017


% Increase/

(Decrease)

REVENUES:






New vehicle retail sales

$

6,181,371


$

6,157,531


0.4

Used vehicle retail sales

3,166,070


2,798,986


13.1

Used vehicle wholesale sales

369,575


400,170


(7.6)

Parts and service

1,416,889


1,338,032


5.9

Finance, insurance and other, net

467,453


429,002


9.0

Total revenues

11,601,358


11,123,721


4.3

COST OF SALES:






New vehicle retail sales

5,870,502


5,835,526


0.6

Used vehicle retail sales

2,980,142


2,621,431


13.7

Used vehicle wholesale sales

367,880


402,912


(8.7)

Parts and service

657,741


618,343


6.4

Total cost of sales

9,876,265


9,478,212


4.2

GROSS PROFIT

1,725,093


1,645,509


4.8

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

1,273,057


1,226,195


3.8

DEPRECIATION AND AMORTIZATION EXPENSE

67,070


57,936


15.8

ASSET IMPAIRMENTS

43,883


19,506


125.0

OPERATING INCOME (LOSS)

341,083


341,872


(0.2)

OTHER EXPENSE:






Floorplan interest expense

(59,882)


(52,372)


14.3

Other interest expense, net

(75,798)


(70,497)


7.5

INCOME (LOSS) BEFORE INCOME TAXES

205,403


219,003


(6.2)

BENEFIT (PROVISION) FOR INCOME TAXES

(47,631)


(5,561)


756.5

NET INCOME (LOSS)

$

157,772


$

213,442


(26.1)

Less: Earnings allocated to participating securities

$

5,414


$

7,511


(27.9)

Earnings available to diluted common shares

$

152,358


$

205,931


(26.0)

DILUTED EARNINGS PER SHARE

$

7.83


$

10.08


(22.3)

Weighted average dilutive common shares outstanding

19,461


20,425


(4.7)

Weighted average participating securities

697


752


(7.3)

Total weighted average shares outstanding

20,158


21,177


(4.8)

 

Group 1 Automotive, Inc.

Consolidated Balance Sheets

(Unaudited)

(Dollars in thousands)









As of December 31,


2018


2017


% Increase/
(Decrease) 

ASSETS:






CURRENT ASSETS:






Cash and cash equivalents

$

15,932


$

28,787


(44.7)

Contracts in transit and vehicle receivables, net

265,660


306,433


(13.3)

Accounts and notes receivable, net

193,981


188,611


2.8

Inventories, net

1,844,059


1,763,293


4.6

Prepaid expenses and other current assets

82,734


42,062


96.7

Total current assets

2,402,366


2,329,186


3.1

PROPERTY AND EQUIPMENT, net

1,347,835


1,318,959


2.2

GOODWILL AND INTANGIBLE FRANCHISE RIGHTS

1,223,555


1,198,666


2.1

OTHER ASSETS

27,319


24,254


12.6

Total assets

$

5,001,075


$

4,871,065


2.7







LIABILITIES AND STOCKHOLDERS' EQUITY:






CURRENT LIABILITIES:






Floorplan notes payable - credit facility and other

$

1,292,452


$

1,240,695


4.2

Offset account related to floorplan notes payable - credit facility

(33,637)


(86,547)


(61.1)

Floorplan notes payable - manufacturer affiliates

417,924


397,183


5.2

Offset account related to floorplan notes payable - manufacturer affiliates

(100)


(22,500)


(99.6)

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

92,967


77,609


19.8

Current liabilities from interest rate risk management activities

115


1,996


(94.2)

Accounts payable

419,350


412,981


1.5

Accrued expenses

197,494


177,070


11.5

Total current liabilities

2,386,565


2,198,487


8.6

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

543,730


542,063


0.3

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

296,735


296,151


0.2

ACQUISITION LINE

31,842


26,988


18.0

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

366,723


405,950


(9.7)

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

42,459


47,032


(9.7)

DEFERRED INCOME TAXES

134,683


124,404


8.3

LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES

1,696


8,583


(80.2)

OTHER LIABILITIES

100,948


97,125


3.9

STOCKHOLDERS' EQUITY:






Common stock

255


255


Additional paid-in capital

292,774


291,461


0.5

Retained earnings

1,394,817


1,246,323


11.9

Accumulated other comprehensive income (loss)

(137,772)


(123,226)


11.8

Treasury stock

(454,380)


(290,531)


56.4

Total stockholders' equity

1,095,694


1,124,282


(2.5)

Total liabilities and stockholders' equity

$

5,001,075


$

4,871,065


2.7

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)












Three Months Ended


Twelve Months Ended



December 31,


December 31,



2018 (%)


2017 (%)


2018 (%)


2017 (%)

NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:








Region

Geographic Market








United States

Texas

38.6


39.2


36.4


37.0


Oklahoma

6.7


6.0


6.3


6.1


California

6.0


7.3


6.2


7.5


Massachusetts

4.7


4.5


4.9


4.6


Georgia

4.7


4.6


4.5


4.6


Florida

2.7


2.9


2.7


2.6


Louisiana

2.5


1.8


2.1


1.9


New Hampshire

1.8


1.9


1.8


2.0


South Carolina

1.9


1.6


1.6


1.4


New Jersey

1.7


1.6


1.6


1.7


Kansas

1.3


1.4


1.4


1.6


Mississippi

1.1


1.1


1.2


1.3


Alabama

0.7


0.8


0.7


1.0


Maryland

0.5


0.4


0.5


0.4


New Mexico

0.2


0.1


0.2


0.1



75.1


75.2


72.1


73.8










International

United Kingdom

19.0


19.5


22.7


21.3


Brazil

5.9


5.3


5.2


4.9



100.0


100.0


100.0


100.0









NEW VEHICLE UNIT SALES BRAND MIX:








Toyota/Lexus

25.9


25.4


25.2


25.3

Volkswagen/Audi/Porsche/SEAT/SKODA

11.4


13.7


13.4


13.8

BMW/MINI

11.8


12.4


12.0


12.7

Ford/Lincoln

10.2


11.4


10.9


11.5

Honda/Acura

10.7


9.2


9.7


9.2

Nissan

6.5


7.0


6.5


7.4

Chevrolet/GMC/Buick/Cadillac

7.1


6.3


6.1


6.2

Mercedes-Benz/smart/Sprinter

5.1


4.4


4.8


4.0

Chrysler/Dodge/Jeep/RAM

3.7


3.9


4.0


3.9

Hyundai/Kia

3.7


3.8


3.9


3.9

Jaguar/Land Rover

2.0


1.2


1.9


0.9

Other

1.9


1.3


1.6


1.2


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 December 31,


2018


2017


% Increase/

(Decrease)

REVENUES:






New vehicle retail sales

$

1,249,434


$

1,310,577


(4.7)

Used vehicle retail sales

579,151


540,528


7.1

Used vehicle wholesale sales

41,403


50,284


(17.7)

Total used

620,554


590,812


5.0

Parts and service

290,520


286,608


1.4

Finance, insurance and other, net

106,032


99,200


6.9

Total

$

2,266,540


$

2,287,197


(0.9)

GROSS MARGIN %:






New vehicle retail sales

5.0


5.3



Used vehicle retail sales

5.6


5.9



Used vehicle wholesale sales

0.9


(4.5)



Total used

5.2


5.0



Parts and service

52.2


53.2



Finance, insurance and other, net

100.0


100.0



Total

15.6


15.3



GROSS PROFIT:






New vehicle retail sales

$

62,287


$

69,455


(10.3)

Used vehicle retail sales

32,172


31,931


0.8

Used vehicle wholesale sales

364


(2,257)


116.1

Total used

32,536


29,674


9.6

Parts and service

151,625


152,349


(0.5)

Finance, insurance and other, net

106,032


99,200


6.9

Total

$

352,480


$

350,678


0.5

UNITS SOLD:






Retail new vehicles sold

31,754


33,608


(5.5)

Retail used vehicles sold

27,887


24,735


12.7

Wholesale used vehicles sold

6,832


8,194


(16.6)

Total used

34,719


32,929


5.4

AVERAGE RETAIL SALES PRICE:






New vehicle retail

$

39,347


$

38,996


0.9

Used vehicle retail

$

20,768


$

21,853


(5.0)

GROSS PROFIT PER UNIT SOLD:






New vehicle retail sales

$

1,962


$

2,067


(5.1)

Used vehicle retail sales

1,154


1,291


(10.6)

Used vehicle wholesale sales

53


(275)


119.3

Total used

937


901


4.0

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

$

1,778


$

1,700


4.6

OTHER:






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

$

104,957


$

99,200


5.8

Adjusted Total Revenue (1)

$

2,265,465


$

2,287,197


(1.0)

Adjusted Total Gross Profit (1)

$

351,405


$

350,678


0.2

Adjusted Total Gross Margin (1)

15.5


15.3



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

$

1,760


$

1,700


3.5

SG&A expenses

$

252,634


$

242,070


4.4

Adjusted SG&A expenses (1)

$

251,020


$

242,070


3.7

SG&A as % revenues

11.1


10.6



Adjusted SG&A as % revenues (1)

11.1


10.6



SG&A as % gross profit

71.7


69.0



Adjusted SG&A as % gross profit (1)

71.4


69.0



Operating margin %

3.1


4.1



Adjusted operating margin % (1)

3.8


4.2



Pretax margin %

1.7


2.8



Adjusted pretax margin % (1)

2.5


2.9



INTEREST EXPENSE:






Floorplan interest expense

$

(14,723)


$

(12,267)


20.0

Floorplan assistance

12,621


12,952


(2.6)

Net floorplan income (expense)

$

(2,102)


$

685


(406.9)

Other interest expense, net

$

(16,464)


$

(16,922)


(2.7)


(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.

(2) Finance, insurance and other revenue represents fees earned for the financing of vehicle sales transactions and from the sale of insurance and vehicle service contracts. Such amounts are reported net of estimated amounts to be charged back in the future. As a result, finance, insurance and other revenue and gross profit are the same.

 

Group 1 Automotive, Inc.

Additional Information - U.S.

(Unaudited)

(Dollars in thousands, except per unit amounts)








Twelve Months Ended December 31,


2018


2017


% Increase/

(Decrease)

REVENUES:






New vehicle retail sales

$

4,682,820


$

4,768,864


(1.8)

Used vehicle retail sales

2,306,999


2,160,699


6.8

Used vehicle wholesale sales

178,910


250,668


(28.6)

Total used

2,485,909


2,411,367


3.1

Parts and service

1,153,257


1,124,380


2.6

Finance, insurance and other, net

401,271


375,954


6.7

Total

$

8,723,257


$

8,680,565


0.5

GROSS MARGIN %:






New vehicle retail sales

4.9


5.1



Used vehicle retail sales

6.1


6.7



Used vehicle wholesale sales

2.1


(1.0)



Total used

5.9


5.9



Parts and service

53.4


53.6



Finance, insurance and other, net

100.0


100.0



Total

15.9


15.7



GROSS PROFIT:






New vehicle retail sales

$

229,058


$

244,286


(6.2)

Used vehicle retail sales

141,707


144,529


(2.0)

Used vehicle wholesale sales

3,751


(2,427)


254.6

Total used

145,458


142,102


2.4

Parts and service

615,519


602,972


2.1

Finance, insurance and other, net

401,271


375,954


6.7

Total

$

1,391,306


$

1,365,314


1.9

UNITS SOLD:






Retail new vehicles sold

122,873


127,141


(3.4)

Retail used vehicles sold

111,806


101,170


10.5

Wholesale used vehicles sold

30,625


37,662


(18.7)

Total used

142,431


138,832


2.6

AVERAGE RETAIL SALES PRICE:






New vehicle retail

$

38,111


$

37,508


1.6

Used vehicle retail

$

20,634


$

21,357


(3.4)

GROSS PROFIT PER UNIT SOLD:






New vehicle retail sales

$

1,864


$

1,921


(3.0)

Used vehicle retail sales

1,267


1,429


(11.3)

Used vehicle wholesale sales

122


(64)


290.6

Total used

1,021


1,024


(0.3)

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

$

1,710


$

1,647


3.8

OTHER:






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

$

400,196


$

382,504


4.6

Adjusted Total revenue (1)

$

8,722,182


$

8,687,115


0.4

Adjusted Total gross profit (1)

$

1,390,231


$

1,371,864


1.3

Adjusted Total gross margin (1)

15.9


15.8



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

$

1,705


$

1,675


1.8

SG&A expenses

$

982,064


$

983,974


(0.2)

Adjusted SG&A expenses (1)

$

999,548


$

975,497


2.5

SG&A as % revenues

11.3


11.3



Adjusted SG&A as % revenues (1)

11.5


11.2



SG&A as % gross profit

70.6


72.1



Adjusted SG&A as % gross profit (1)

71.9


71.1



Operating margin %

3.6


3.7



Adjusted operating margin % (1)

3.9


4.0



Pretax margin %

2.2


2.4



Adjusted pretax margin % (1)

2.5


2.7



INTEREST EXPENSE:






Floorplan interest expense

$

(52,773)


$

(47,221)


11.8

Floorplan assistance

46,313


47,984


(3.5)

Net floorplan income (expense)

$

(6,460)


$

763


(946.7)

Other interest expense, net

$

(68,085)


$

(66,493)


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.

(2) Finance, insurance and other revenue represents fees earned for the financing of vehicle sales transactions and from the sale of insurance and vehicle service contracts. Such amounts are reported net of estimated amounts to be charged back in the future. As a result, finance, insurance and other revenue and gross profit are the same.

 

Group 1 Automotive, Inc.

Additional Information - U.K.

(Unaudited)

(Dollars in thousands, except per unit amounts)




Three Months Ended December 31,


2018


2017


% Increase/
(Decrease)


Constant Currency (1)
% Increase/(Decrease)

REVENUES:








New vehicle retail sales

$

246,050


$

267,785


(8.1)


(5.3)

Used vehicle retail sales

171,004


144,415


18.4


21.9

Used vehicle wholesale sales

39,375


37,243


5.7


8.7

Total used

210,379


181,658


15.8


19.2

Parts and service

52,640


45,141


16.6


20.1

Finance, insurance and other, net

14,955


13,263


12.8


17.0

Total

$

524,024


$

507,847


3.2


6.3

GROSS MARGIN %:








New vehicle retail sales

5.7


5.7





Used vehicle retail sales

4.5


4.6





Used vehicle wholesale sales

(1.3)


(0.9)





Total used

3.4


3.5





Parts and service

54.8


56.6





Finance, insurance and other, net

100.0


100.0





Total

12.4


11.9





GROSS PROFIT:








New vehicle retail sales

$

14,033


$

15,231


(7.9)


(4.2)

Used vehicle retail sales

7,610


6,696


13.6


16.8

Used vehicle wholesale sales

(516)


(322)


(60.2)


(66.2)

Total used

7,094


6,374


11.3


14.3

Parts and service

28,843


25,559


12.8


16.2

Finance, insurance and other, net

14,955


13,263


12.8


17.0

Total

$

64,925


$

60,427


7.4


11.1

UNITS SOLD:








Retail new vehicles sold

8,019


8,750


(8.4)



Retail used vehicles sold

7,148


6,188


15.5



Wholesale used vehicles sold

4,742


5,089


(6.8)



Total used

11,890


11,277


5.4



AVERAGE RETAIL SALES PRICE:








New vehicle retail

$

30,683


$

30,604


0.3


3.3

Used vehicle retail

$

23,923


$

23,338


2.5


5.5

GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$

1,750


$

1,741


0.5


4.5

Used vehicle retail sales

1,065


1,082


(1.6)


1.1

Used vehicle wholesale sales

(109)


(63)


(73.0)


(78.3)

Total used

597


565


5.7


8.4

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

$

986


$

888


11.0


15.3

OTHER:








SG&A expenses

$

58,845


$

54,095


8.8


12.3

SG&A as % revenues

11.2


10.7





SG&A as % gross profit

90.6


89.5





Operating margin %

0.4


0.8





Adjusted operating margin % (1)

0.5


0.8





Pretax margin %

(0.2)


0.3





Adjusted pretax margin % (1)

(0.1)


0.3





INTEREST EXPENSE:








Floorplan interest expense

$

(1,635)


$

(1,304)


25.4


29.5

Floorplan assistance

141


237


(40.5)


(38.6)

Net floorplan expense

$

(1,494)


$

(1,067)


40.0


44.6

Other interest expense, net

$

(1,782)


$

(1,278)


39.4


43.9


(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)










Twelve Months Ended December 31,


2018


2017


% Increase/
(Decrease)


Constant Currency (1)
% Increase/(Decrease)

REVENUES:








New vehicle retail sales

$

1,217,135


$

1,092,612


11.4


7.3

Used vehicle retail sales

771,719


546,266


41.3


36.5

Used vehicle wholesale sales

173,783


136,847


27.0


22.6

Total used

945,502


683,113


38.4


33.7

Parts and service

217,594


165,755


31.3


26.9

Finance, insurance and other, net

57,154


44,523


28.4


24.7

Total

$

2,437,385


$

1,986,003


22.7


18.4

GROSS MARGIN %:








New vehicle retail sales

5.2


5.5





Used vehicle retail sales

5.0


4.8





Used vehicle wholesale sales

(1.6)


(0.9)





Total used

3.8


3.7





Parts and service

56.5


57.3





Finance, insurance and other, net

100.0


100.0





Total

11.5


11.3





GROSS PROFIT:








New vehicle retail sales

$

63,579


$

60,581


4.9


1.6

Used vehicle retail sales

38,898


26,275


48.0


42.9

Used vehicle wholesale sales

(2,704)


(1,173)


(130.5)


(127.1)

Total used

36,194


25,102


44.2


38.9

Parts and service

122,975


95,047


29.4


25.1

Finance, insurance and other, net

57,154


44,523


28.4


24.7

Total

$

279,902


$

225,253


24.3


20.3

UNITS SOLD:








Retail new vehicles sold

38,716


36,571


5.9



Retail used vehicles sold

31,966


24,623


29.8



Wholesale used vehicles sold

21,666


18,334


18.2



Total used

53,632


42,957


24.9



AVERAGE RETAIL SALES PRICE:








New vehicle retail

$

31,438


$

29,876


5.2


1.4

Used vehicle retail

$

24,142


$

22,185


8.8


5.2

GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$

1,642


$

1,657


(0.9)


(4.0)

Used vehicle retail sales

1,217


1,067


14.1


10.0

Used vehicle wholesale sales

(125)


(64)


(95.3)


(92.2)

Total used

675


584


15.6


11.3

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

$

809


$

728


11.1


8.0

OTHER:








SG&A expenses

$

240,403


$

191,570


25.5


21.4

Adjusted SG&A expenses (1)

$

240,403


$

191,282


25.7


21.6

SG&A as % revenues

9.9


9.6





Adjusted SG&A as % revenues (1)

9.9


9.6





SG&A as % gross profit

85.9


85.0





Adjusted SG&A as % gross profit (1)

85.9


84.9





Operating margin %

1.1


1.3





Adjusted operating margin % (1)

1.1


1.3





Pretax margin %

0.5


0.9





Adjusted pretax margin % (1)

0.6


0.9





INTEREST EXPENSE:








Floorplan interest expense

$

(6,322)


$

(4,727)


33.7


29.6

Floorplan assistance

965


951


1.5


(2.3)

Net floorplan expense

$

(5,357)


$

(3,776)


41.9


37.7

Other interest expense, net

$

(6,797)


$

(3,664)


85.5


80.7


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

 

Group 1 Automotive, Inc.

Additional Information - Brazil

(Unaudited)

(Dollars in thousands, except per unit amounts)










Three Months Ended December 31,


2018


2017


% Increase/
(Decrease)


Constant Currency (2)
% Increase/(Decrease)

REVENUES:








New vehicle retail sales

$

77,229


$

82,947


(6.9)


9.1

Used vehicle retail sales

21,087


24,129


(12.6)


2.4

Used vehicle wholesale sales

5,344


4,282


24.8


46.5

Total used

26,431


28,411


(7.0)


9.1

Parts and service

11,584


11,761


(1.5)


15.4

Finance, insurance and other, net

3,004


2,242


34.0


56.9

Total

$

118,248


$

125,361


(5.7)


10.5

GROSS MARGIN %:








New vehicle retail sales

6.4


5.8





Used vehicle retail sales

6.1


7.8





Used vehicle wholesale sales

5.0


4.4





Total used

5.9


7.3





Parts and service

44.6


45.9





Finance, insurance and other, net

100.0


100.0





Total

12.4


11.6





GROSS PROFIT:








New vehicle retail sales

$

4,938


$

4,849


1.8


19.0

Used vehicle retail sales

1,282


1,887


(32.1)


(20.4)

Used vehicle wholesale sales

265


189


40.2


64.6

Total used

1,547


2,076


(25.5)


(12.7)

Parts and service

5,172


5,403


(4.3)


12.2

Finance, insurance and other, net

3,004


2,242


34.0


56.9

Total

$

14,661


$

14,570


0.6


17.8

UNITS SOLD:








Retail new vehicles sold

2,499


2,355


6.1



Retail used vehicles sold

1,064


1,092


(2.6)



Wholesale used vehicles sold

515


290


77.6



Total used

1,579


1,382


14.3



AVERAGE RETAIL SALES PRICE:








New vehicle retail

$

30,904


$

35,222


(12.3)


2.8

Used vehicle retail

$

19,819


$

22,096


(10.3)


5.1

GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$

1,976


$

2,059


(4.0)


12.2

Used vehicle retail sales

1,205


1,728


(30.3)


(18.3)

Used vehicle wholesale sales

515


652


(21.0)


(7.3)

Total used

980


1,502


(34.8)


(23.6)

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

$

843


$

650


29.7


51.8

OTHER:








SG&A expenses

$

12,368


$

13,356


(7.4)


8.5

Adjusted SG&A expenses (1)

$

12,368


$

12,881


(4.0)


12.6

SG&A as % revenues

10.5


10.7





Adjusted SG&A as % revenues (1)

10.5


10.3





SG&A as % gross profit

84.4


91.7





Adjusted SG&A as % gross profit (1)

84.4


88.4





Operating margin %

1.6


(4.7)





Adjusted operating margin % (1)

1.6


1.1





Pretax margin %

1.3


(4.9)





Adjusted pretax margin % (1)

1.3


0.9





INTEREST EXPENSE:








Floorplan interest expense

$

(189)


$

(142)


33.1


55.4

Floorplan assistance




Net floorplan expense

$

(189)


$

(142)


33.1


55.4

Other interest expense, net

$

(178)


$

(109)


63.3


90.0


(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)












Twelve Months Ended December 31,


2018


2017


% Increase/
(Decrease)


Constant Currency (1)
% Increase/(Decrease)

REVENUES:








New vehicle retail sales

$

281,416


$

296,055


(4.9)


8.5

Used vehicle retail sales

87,352


92,021


(5.1)


7.9

Used vehicle wholesale sales

16,882


12,655


33.4


53.9

Total used

104,234


104,676


(0.4)


13.4

Parts and service

46,038


47,897


(3.9)


9.7

Finance, insurance and other, net

9,028


8,525


5.9


22.0

Total

$

440,716


$

457,153


(3.6)


10.0

GROSS MARGIN %:








New vehicle retail sales

6.5


5.8





Used vehicle retail sales

6.1


7.3





Used vehicle wholesale sales

3.8


6.8





Total used

5.7


7.3





Parts and service

44.9


45.2





Finance, insurance and other, net

100.0


100.0





Total

12.2


12.0





GROSS PROFIT:








New vehicle retail sales

$

18,232


$

17,138


6.4


22.4

Used vehicle retail sales

5,323


6,751


(21.2)


(10.4)

Used vehicle wholesale sales

648


858


(24.5)


(13.0)

Total used

5,971


7,609


(21.5)


(10.7)

Parts and service

20,654


21,670


(4.7)


8.7

Finance, insurance and other, net

9,028


8,525


5.9


22.0

Total

$

53,885


$

54,942


(1.9)


12.3

UNITS SOLD:








Retail new vehicles sold

8,928


8,488


5.2



Retail used vehicles sold

4,227


4,140


2.1



Wholesale used vehicles sold

1,596


1,148


39.0



Total used

5,823


5,288


10.1



AVERAGE RETAIL SALES PRICE:








New vehicle retail

$

31,521


$

34,879


(9.6)


3.2

Used vehicle retail

$

20,665


$

22,227


(7.0)


5.6

GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$

2,042


$

2,019


1.1


16.3

Used vehicle retail sales

1,259


1,631


(22.8)


(12.3)

Used vehicle wholesale sales

406


747


(45.6)


(37.4)

Total used

1,025


1,439


(28.8)


(18.9)

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

$

686


$

675


1.6


17.1

OTHER:








SG&A expenses

$

50,590


$

50,651


(0.1)


15.0

Adjusted SG&A expenses (1)

$

46,920


$

50,176


(6.5)


6.9

SG&A as % revenues

11.5


11.1





Adjusted SG&A as % revenues (1)

10.6


11.0





SG&A as % gross profit

93.9


92.2





Adjusted SG&A as % gross profit (1)

87.1


91.3





Operating margin %

0.4


(0.9)





Adjusted operating margin % (1)

1.2


0.7





Pretax margin %


(1.0)





Adjusted pretax margin % (1)

0.8


0.6





INTEREST EXPENSE:








Floorplan interest expense

$

(787)


$

(424)


85.6


110.6

Floorplan assistance




Net floorplan expense

$

(787)


$

(424)


85.6


110.6

Other interest expense, net

$

(916)


$

(340)


169.4


199.6


(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 December 31,


2018


2017


% Increase/
(Decrease)


Constant Currency (1)
% Increase/(Decrease)

REVENUES:








New vehicle retail sales

$

1,572,713


$

1,661,309


(5.3)


(4.1)

Used vehicle retail sales

771,242


709,072


8.8


10.0

Used vehicle wholesale sales

86,122


91,809


(6.2)


(4.0)

Total used

857,364


800,881


7.1


8.4

Parts and service

354,744


343,510


3.3


4.3

Finance, insurance and other, net

123,991


114,705


8.1


9.0

Total

$

2,908,812


$

2,920,405


(0.4)


0.8

GROSS MARGIN %:








New vehicle retail sales

5.2


5.4





Used vehicle retail sales

5.3


5.7





Used vehicle wholesale sales

0.1


(2.6)





Total used

4.8


4.8





Parts and service

52.3


53.4





Finance, insurance and other, net

100.0


100.0





Total

14.9


14.6





GROSS PROFIT:








New vehicle retail sales

$

81,258


$

89,535


(9.2)


(7.7)

Used vehicle retail sales

41,064


40,514


1.4


2.4

Used vehicle wholesale sales

113


(2,390)


104.7


105.9

Total used

41,177


38,124


8.0


9.2

Parts and service

185,640


183,311


1.3


2.2

Finance, insurance and other, net

123,991


114,705


8.1


9.0

Total

$

432,066


$

425,675


1.5


2.6

UNITS SOLD:








Retail new vehicles sold

42,272


44,713


(5.5)



Retail used vehicles sold

36,099


32,015


12.8



Wholesale used vehicles sold

12,089


13,573


(10.9)



Total used

48,188


45,588


5.7



AVERAGE RETAIL SALES PRICE:








New vehicle retail

$

37,205


$

37,155


0.1


1.5

Used vehicle retail

$

21,365


$

22,148


(3.5)


(2.5)

GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$

1,922


$

2,002


(4.0)


(2.4)

Used vehicle retail sales

1,138


1,265


(10.0)


(9.2)

Used vehicle wholesale sales

9


(176)


105.1


106.6

Total used

855


836


2.3


3.3

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

$

1,582


$

1,495


5.8


6.8

OTHER:








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

$

122,916


$

114,705


7.2


8.1

Adjusted Total revenue (1)

$

2,907,737


$

2,920,405


(0.4)


0.8

Adjusted Total gross profit (1)

$

430,991


$

425,675


1.2


2.3

Adjusted Total gross margin (1)

14.8


14.6





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

$

1,568


$

1,495


4.9


5.8

SG&A expenses

$

323,847


$

309,521


4.6


5.9

Adjusted SG&A expenses (1)

$

322,233


$

309,046


4.3


5.6

SG&A as % revenues

11.1


10.6





Adjusted SG&A as % revenues (1)

11.1


10.6





SG&A as % gross profit

75.0


72.7





Adjusted SG&A as % gross profit (1)

74.8


72.6





Operating margin %

2.6


3.1





Adjusted operating margin % (1)

3.2


3.5





Pretax margin %

1.4


2.0





Adjusted pretax margin % (1)

1.9


2.4





INTEREST EXPENSE:








Floorplan interest expense

$

(16,547)


$

(13,713)


20.7


21.3

Floorplan assistance

12,761


13,189


(3.2)


(3.2)

Net floorplan expense

$

(3,786)


$

(524)


622.5


638.1

Other interest expense, net

$

(18,424)


$

(18,309)


(0.6)


1.1


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

(2) Finance, insurance and other revenue represents fees earned for the financing of vehicle sales transactions and from the sale of insurance and vehicle service contracts. Such amounts are reported net of estimated amounts to be charged back in the future. As a result, finance, insurance and other revenue and gross profit are the same.

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

(Dollars in thousands, except per unit amounts)




Twelve Months Ended December 31,


2018


2017


% Increase/
(Decrease)


Constant Currency (1)
% Increase/(Decrease)

REVENUES:








New vehicle retail sales

$

6,181,371


$

6,157,531


0.4


0.3

Used vehicle retail sales

3,166,070


2,798,986


13.1


12.6

Used vehicle wholesale sales

369,575


400,170


(7.6)


(8.5)

Total used

3,535,645


3,199,156


10.5


10.0

Parts and service

1,416,889


1,338,032


5.9


5.8

Finance, insurance and other, net

467,453


429,002


9.0


8.9

Total

$

11,601,358


$

11,123,721


4.3


4.1

GROSS MARGIN %:








New vehicle retail sales

5.0


5.2





Used vehicle retail sales

5.9


6.3





Used vehicle wholesale sales

0.5


(0.7)





Total used

5.3


5.5





Parts and service

53.6


53.8





Finance, insurance and other, net

100.0


100.0





Total

14.9


14.8





GROSS PROFIT:








New vehicle retail sales

$

310,869


$

322,005


(3.5)


(3.2)

Used vehicle retail sales

185,928


177,555


4.7


4.4

Used vehicle wholesale sales

1,695


(2,742)


161.8


166.9

Total used

187,623


174,813


7.3


7.0

Parts and service

759,148


719,689


5.5


5.3

Finance, insurance and other, net

467,453


429,002


9.0


8.9

Total

$

1,725,093


$

1,645,509


4.8


4.8

UNITS SOLD:








Retail new vehicles sold

170,517


172,200


(1.0)



Retail used vehicles sold

147,999


129,933


13.9



Wholesale used vehicles sold

53,887


57,144


(5.7)



Total used

201,886


187,077


7.9



AVERAGE RETAIL SALES PRICE:








New vehicle retail

$

36,251


$

35,758


1.4


1.3

Used vehicle retail

$

21,393


$

21,542


(0.7)


(1.1)

GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$

1,823


$

1,870


(2.5)


(2.3)

Used vehicle retail sales

1,256


1,367


(8.1)


(8.4)

Used vehicle wholesale sales

31


(48)


164.6


171.0

Total used

929


934


(0.5)


(0.8)

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

$

1,468


$

1,420


3.4


3.3

OTHER:








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

$

466,378


$

435,552


7.1


7.0

Adjusted Total revenue (1)

$

11,600,283


$

11,130,271


4.2


4.0

Adjusted Total gross profit (1)

$

1,724,018


$

1,652,059


4.4


4.3

Adjusted Total gross margin (1)

14.9


14.8





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

$

1,464


$

1,442


1.5


1.5

SG&A expenses

$

1,273,057


$

1,226,195


3.8


3.8

Adjusted SG&A expenses (1)

$

1,286,871


$

1,216,955


5.7


5.7

SG&A as % revenues

11.0


11.0





Adjusted SG&A as % revenues (1)

11.1


10.9





SG&A as % gross profit

73.8


74.5





Adjusted SG&A as % gross profit (1)

74.6


73.7





Operating margin %

2.9


3.1





Adjusted operating margin % (1)

3.2


3.4





Pretax margin %

1.8


2.0





Adjusted pretax margin % (1)

2.0


2.3





INTEREST EXPENSE:








Floorplan interest expense

$

(59,882)


$

(52,372)


14.3


14.2

Floorplan assistance

47,277


48,935


(3.4)


(3.5)

Net floorplan expense

$

(12,605)


$

(3,437)


266.7


265.1

Other interest expense, net

$

(75,798)


$

(70,497)


7.5


7.4


(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.

(2) Finance, insurance and other revenue represents fees earned for the financing of vehicle sales transactions and from the sale of insurance and vehicle service contracts. Such amounts are reported net of estimated amounts to be charged back in the future. As a result, finance, insurance and other revenue and gross profit are the same.

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)








Three Months Ended December 31,


2018


2017


% Increase/
(Decrease)

REVENUES:






New vehicle retail sales

$

1,219,825


$

1,286,220


(5.2)

Used vehicle retail sales

564,987


531,511


6.3

Used vehicle wholesale sales

40,580


49,224


(17.6)

Total used

605,567


580,735


4.3

Parts and service

287,610


281,730


2.1

Finance, insurance and other, net

103,412


97,593


6.0

Total

$

2,216,414


$

2,246,278


(1.3)

GROSS MARGIN %:






New vehicle retail sales

5.0


5.3



Used vehicle retail sales

5.6


5.9



Used vehicle wholesale sales

0.9


(4.5)



Total used

5.2


5.0



Parts and service

52.1


53.2



Finance, insurance and other, net

100.0


100.0



Total

15.6


15.3



GROSS PROFIT:






New vehicle retail sales

$

60,834


$

67,832


(10.3)

Used vehicle retail sales

31,373


31,391


(0.1)

Used vehicle wholesale sales

352


(2,191)


116.1

Total used

31,725


29,200


8.6

Parts and service

149,750


149,765


Finance, insurance and other, net

103,412


97,593


6.0

Total

$

345,721


$

344,390


0.4

UNITS SOLD:






Retail new vehicles sold

30,835


33,117


(6.9)

Retail used vehicles sold

27,097


24,397


11.1

Wholesale used vehicles sold

6,627


8,083


(18.0)

Total used

33,724


32,480


3.8

AVERAGE RETAIL SALES PRICE:






New vehicle retail

$

39,560


$

38,839


1.9

Used vehicle retail

$

20,851


$

21,786


(4.3)

GROSS PROFIT PER UNIT SOLD:






New vehicle retail sales

$

1,973


$

2,048


(3.7)

Used vehicle retail sales

1,158


1,287


(10.0)

Used vehicle wholesale sales

53


(271)


119.6

Total used

941


899


4.7

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

$

1,785


$

1,697


5.2

OTHER:






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

$

102,337


$

97,593


4.9

Adjusted Total revenue (2)

$

2,215,339


$

2,246,278


(1.4)

Adjusted Total gross profit (2)

$

344,646


$

344,390


0.1

Adjusted Total gross margin (2)

15.6


15.3



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

$

1,767


$

1,697


4.1

SG&A expenses

$

243,619


$

237,470


2.6

Adjusted SG&A expenses (2)

$

242,332


$

237,470


2.0

SG&A as % revenues

11.0


10.6



Adjusted SG&A as % revenues (2)

10.9


10.6



SG&A as % gross profit

70.5


69.0



Adjusted SG&A as % gross profit (2)

70.3


69.0



Operating margin %

3.3


4.2



Adjusted operating margin % (2)

4.0


4.2




(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.

(3) Finance, insurance and other revenue represents fees earned for the financing of vehicle sales transactions and from the sale of insurance and vehicle service contracts. Such amounts are reported net of estimated amounts to be charged back in the future. As a result, finance, insurance and other revenue and gross profit are the same.

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)








Twelve Months Ended December 31,


2018


2017


% Increase/
(Decrease)

REVENUES:






New vehicle retail sales

$

4,577,539


$

4,722,200


(3.1)

Used vehicle retail sales

2,255,446


2,141,315


5.3

Used vehicle wholesale sales

173,968


247,852


(29.8)

Total used

2,429,414


2,389,167


1.7

Parts and service

1,137,841


1,113,635


2.2

Finance, insurance and other, net

391,730


371,932


5.3

Total

$

8,536,524


$

8,596,934


(0.7)

GROSS MARGIN %:






New vehicle retail sales

4.9


5.1



Used vehicle retail sales

6.1


6.7



Used vehicle wholesale sales

2.2


(1.0)



Total used

5.9


5.9



Parts and service

53.3


53.6



Finance, insurance and other, net

100.0


100.0



Total

16.0


15.7



GROSS PROFIT:






New vehicle retail sales

$

223,295


$

241,341


(7.5)

Used vehicle retail sales

138,623


143,287


(3.3)

Used vehicle wholesale sales

3,747


(2,411)


255.4

Total used

142,370


140,876


1.1

Parts and service

606,405


597,184


1.5

Finance, insurance and other, net

391,730


371,932


5.3

Total

$

1,363,800


$

1,351,333


0.9

UNITS SOLD:






Retail new vehicles sold

120,090


126,205


(4.8)

Retail used vehicles sold

109,332


100,475


8.8

Wholesale used vehicles sold

29,915


37,383


(20.0)

Total used

139,247


137,858


1.0

AVERAGE RETAIL SALES PRICE:






New vehicle retail

$

38,118


$

37,417


1.9

Used vehicle retail

$

20,629


$

21,312


(3.2)

GROSS PROFIT PER UNIT SOLD:






New vehicle retail sales

$

1,859


$

1,912


(2.8)

Used vehicle retail sales

1,268


1,426


(11.1)

Used vehicle wholesale sales

125


(64)


295.3

Total used

1,022


1,022


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

$

1,707


$

1,641


4.0

OTHER:






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

$

390,655


$

378,482


3.2

Adjusted Total revenue (2)

$

8,535,449


$

8,603,484


(0.8)

Adjusted Total gross profit (2)

$

1,362,725


$

1,357,883


0.4

Adjusted Total gross margin (2)

16.0


15.8



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

$

1,703


$

1,670


2.0

SG&A expenses

$

979,531


$

973,412


0.6

Adjusted SG&A expenses (2)

$

974,201


$

964,935


1.0

SG&A as % revenues

11.5


11.3



Adjusted SG&A as % revenues (2)

11.4


11.2



SG&A as % gross profit

71.8


72.0



Adjusted SG&A as % gross profit (2)

71.5


71.1



Operating margin %

3.4


3.7



Adjusted operating margin % (2)

3.9


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.

(3) Finance, insurance and other revenue represents fees earned for the financing of vehicle sales transactions and from the sale of insurance and vehicle service contracts. Such amounts are reported net of estimated amounts to be charged back in the future. As a result, finance, insurance and other revenue and gross profit are the same.

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)










Three Months Ended December 31,


2018


2017


% Increase/
(Decrease)


Constant Currency (2)
% Increase/(Decrease)

REVENUES:








New vehicle retail sales

$

218,569


$

266,779


(18.1)


(15.6)

Used vehicle retail sales

150,220


143,577


4.6


7.7

Used vehicle wholesale sales

36,527


37,013


(1.3)


1.5

Total used

186,747


180,590


3.4


6.4

Parts and service

46,881


44,619


5.1


8.2

Finance, insurance and other, net

12,449


13,171


(5.5)


(2.0)

Total

$

464,646


$

505,159


(8.0)


(5.2)

GROSS MARGIN %:








New vehicle retail sales

6.2


5.7





Used vehicle retail sales

4.5


4.6





Used vehicle wholesale sales

(0.9)


(0.9)





Total used

3.5


3.5





Parts and service

53.9


56.6





Finance, insurance and other, net

100.0


100.0





Total

12.4


11.9





GROSS PROFIT:








New vehicle retail sales

$

13,548


$

15,202


(10.9)


(7.3)

Used vehicle retail sales

6,824


6,669


2.3


5.2

Used vehicle wholesale sales

(346)


(325)


(6.5)


(10.9)

Total used

6,478


6,344


2.1


4.9

Parts and service

25,265


25,247


0.1


3.1

Finance, insurance and other, net

12,449


13,171


(5.5)


(2.0)

Total

$

57,740


$

59,964


(3.7)


(0.5)

UNITS SOLD:








Retail new vehicles sold

7,270


8,694


(16.4)



Retail used vehicles sold

6,246


6,121


2.0



Wholesale used vehicles sold

4,366


5,031


(13.2)



Total used

10,612


11,152


(4.8)



AVERAGE RETAIL SALES PRICE:








New vehicle retail

$

30,065


$

30,685


(2.0)


1.0

Used vehicle retail

$

24,051


$

23,456


2.5


5.6

GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$

1,864


$

1,749


6.6


10.8

Used vehicle retail sales

1,093


1,090


0.3


3.1

Used vehicle wholesale sales

(79)


(65)


(21.5)


(27.8)

Total used

610


569


7.2


10.2

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

$

921


$

889


3.6


7.4

OTHER:








SG&A expenses

$

52,863


$

53,493


(1.2)


2.0

SG&A as % revenues

11.4


10.6





SG&A as % gross profit

91.6


89.2





Operating margin %

0.3


0.8





Adjusted operating margin % (2)

0.4


0.8






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

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

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)











Twelve Months Ended December 31,


2018


2017


% Increase/
(Decrease)


Constant Currency (2)
% Increase/(Decrease)

REVENUES:








New vehicle retail sales

$

978,873


$

1,073,144


(8.8)


(11.9)

Used vehicle retail sales

612,307


532,469


15.0


11.4

Used vehicle wholesale sales

144,303


133,483


8.1


4.6

Total used

756,610


665,952


13.6


10.0

Parts and service

177,079


161,723


9.5


6.1

Finance, insurance and other, net

45,788


43,584


5.1


2.2

Total

$

1,958,350


$

1,944,403


0.7


(2.6)

GROSS MARGIN %:








New vehicle retail sales

5.6


5.6





Used vehicle retail sales

5.0


4.9





Used vehicle wholesale sales

(1.3)


(0.8)





Total used

3.8


3.8





Parts and service

56.1


57.4





Finance, insurance and other, net

100.0


100.0





Total

11.7


11.4





GROSS PROFIT:








New vehicle retail sales

$

54,607


$

59,827


(8.7)


(11.4)

Used vehicle retail sales

30,387


26,072


16.6


12.6

Used vehicle wholesale sales

(1,947)


(1,089)


(78.8)


(75.7)

Total used

28,440


24,983


13.8


9.9

Parts and service

99,375


92,842


7.0


3.7

Finance, insurance and other, net

45,788


43,584


5.1


2.2

Total

$

228,210


$

221,236


3.2


UNITS SOLD:








Retail new vehicles sold

31,777


35,751


(11.1)



Retail used vehicles sold

25,090


23,940


4.8



Wholesale used vehicles sold

17,883


17,871


0.1



Total used

42,973


41,811


2.8



AVERAGE RETAIL SALES PRICE:








New vehicle retail

$

30,804


$

30,017


2.6


(0.9)

Used vehicle retail

$

24,404


$

22,242


9.7


6.3

GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$

1,718


$

1,673


2.7


(0.3)

Used vehicle retail sales

1,211


1,089


11.2


7.5

Used vehicle wholesale sales

(109)


(61)


(78.7)


(75.6)

Total used

662


598


10.7


6.9

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

$

805


$

730


10.3


7.3

OTHER:








SG&A expenses

$

196,899


$

186,160


5.8


2.6

Adjusted SG&A expenses (2)

$

196,899


$

185,872


5.9


2.7

SG&A as % revenues

10.1


9.6





Adjusted SG&A as % revenues (2)

10.1


9.6





SG&A as % gross profit

86.3


84.1





Adjusted SG&A as % gross profit (2)

86.3


84.0





Operating margin %

1.0


1.4





Adjusted operating margin % (2)

1.1


1.4






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

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

 

Group 1 Automotive, Inc.

Additional Information - Same Store Brazil (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)










Three Months Ended December 31,


2018


2017


% Increase/
(Decrease)


Constant Currency (2)
% Increase/(Decrease)

REVENUES:








New vehicle retail sales

$

70,923


$

82,946


(14.5)


0.2

Used vehicle retail sales

19,845


24,129


(17.8)


(3.6)

Used vehicle wholesale sales

5,096


4,281


19.0


39.6

Total used

24,941


28,410


(12.2)


2.9

Parts and service

11,003


11,762


(6.5)


9.6

Finance, insurance and other, net

2,763


2,243


23.2


44.2

Total

$

109,630


$

125,361


(12.5)


2.5

GROSS MARGIN %:








New vehicle retail sales

6.5


5.8





Used vehicle retail sales

6.2


7.8





Used vehicle wholesale sales

5.1


4.4





Total used

6.0


7.3





Parts and service

44.1


45.9





Finance, insurance and other, net

100.0


100.0





Total

12.5


11.6





GROSS PROFIT:








New vehicle retail sales

$

4,637


$

4,849


(4.4)


11.8

Used vehicle retail sales

1,240


1,887


(34.3)


(23.0)

Used vehicle wholesale sales

258


188


37.2


60.7

Total used

1,498


2,075


(27.8)


(15.4)

Parts and service

4,854


5,404


(10.2)


5.3

Finance, insurance and other, net

2,763


2,243


23.2


44.2

Total

$

13,752


$

14,571


(5.6)


10.5

UNITS SOLD:








Retail new vehicles sold

2,253


2,355


(4.3)



Retail used vehicles sold

1,004


1,091


(8.0)



Wholesale used vehicles sold

457


290


57.6



Total used

1,461


1,381


5.8



AVERAGE RETAIL SALES PRICE:








New vehicle retail

$

31,479


$

35,221


(10.6)


4.7

Used vehicle retail

$

19,766


$

22,116


(10.6)


4.8

GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$

2,058


$

2,059



16.8

Used vehicle retail sales

1,235


1,730


(28.6)


(16.4)

Used vehicle wholesale sales

565


648


(12.8)


1.9

Total used

1,025


1,503


(31.8)


(20.1)

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

$

848


$

651


30.3


52.6

OTHER:








SG&A expenses

$

11,472


$

13,459


(14.8)


(0.1)

Adjusted SG&A expenses (2)

$

11,472


$

12,984


(11.6)


3.6

SG&A as % revenues

10.5


10.7





Adjusted SG&A as % revenues (2)

10.5


10.4





SG&A as % gross profit

83.4


92.4





Adjusted SG&A as % gross profit (2)

83.4


89.1





Operating margin %

1.7


(4.8)





Adjusted operating margin % (2)

1.7


1.0






(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 Brazil (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)











Twelve Months Ended December 31,


2018


2017


% Increase/
(Decrease)


Constant Currency (2)
% Increase/(Decrease)

REVENUES:








New vehicle retail sales

$

267,261


$

293,820


(9.0)


3.6

Used vehicle retail sales

84,985


90,210


(5.8)


6.9

Used vehicle wholesale sales

16,441


12,638


30.1


49.8

Total used

101,426


102,848


(1.4)


12.2

Parts and service

44,596


47,242


(5.6)


7.5

Finance, insurance and other, net

8,630


8,285


4.2


19.7

Total

$

421,913


$

452,195


(6.7)


6.2

GROSS MARGIN %:








New vehicle retail sales

6.6


5.8





Used vehicle retail sales

6.2


7.4





Used vehicle wholesale sales

3.8


6.8





Total used

5.8


7.4





Parts and service

44.5


45.7





Finance, insurance and other, net

100.0


100.0





Total

12.3


12.0





GROSS PROFIT:








New vehicle retail sales

$

17,516


$

17,044


2.8


18.0

Used vehicle retail sales

5,252


6,708


(21.7)


(11.1)

Used vehicle wholesale sales

630


857


(26.5)


(15.6)

Total used

5,882


7,565


(22.2)


(11.6)

Parts and service

19,844


21,584


(8.1)


4.6

Finance, insurance and other, net

8,630


8,285


4.2


19.7

Total

$

51,872


$

54,478


(4.8)


8.9

UNITS SOLD:








Retail new vehicles sold

8,369


8,390


(0.3)



Retail used vehicles sold

4,098


4,094


0.1



Wholesale used vehicles sold

1,487


1,038


43.3



Total used

5,585


5,132


8.8



AVERAGE RETAIL SALES PRICE:








New vehicle retail

$

31,935


$

35,020


(8.8)


3.8

Used vehicle retail

$

20,738


$

22,035


(5.9)


6.8

GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$

2,093


$

2,031


3.1


18.3

Used vehicle retail sales

1,282


1,638


(21.7)


(11.2)

Used vehicle wholesale sales

424


826


(48.7)


(41.1)

Total used

1,053


1,474


(28.6)


(18.8)

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

$

692


$

664


4.2


19.9

OTHER:








SG&A expenses

$

48,050


$

49,599


(3.1)


11.3

Adjusted SG&A expenses (2)

$

45,116


$

49,124


(8.2)


4.8

SG&A as % revenues

11.4


11.0





Adjusted SG&A as % revenues (2)

10.7


10.9





SG&A as % gross profit

92.6


91.0





Adjusted SG&A as % gross profit (2)

87.0


90.2





Operating margin %

0.5


(0.7)





Adjusted operating margin % (2)

1.2


0.9






(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 Consolidated (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)










Three Months Ended December 31,


2018


2017


% Increase/
(Decrease)


Constant Currency (2)
% Increase/(Decrease)

REVENUES:








New vehicle retail sales

$

1,509,317


$

1,635,945


(7.7)


(6.6)

Used vehicle retail sales

735,052


699,217


5.1


6.2

Used vehicle wholesale sales

82,203


90,518


(9.2)


(7.1)

Total used

817,255


789,735


3.5


4.7

Parts and service

345,494


338,111


2.2


3.2

Finance, insurance and other, net

118,624


113,007


5.0


5.8

Total

$

2,790,690


$

2,876,798


(3.0)


(1.9)

GROSS MARGIN %:








New vehicle retail sales

5.2


5.4





Used vehicle retail sales

5.4


5.7





Used vehicle wholesale sales

0.3


(2.6)





Total used

4.9


4.8





Parts and service

52.1


53.4





Finance, insurance and other, net

100.0


100.0





Total

15.0


14.6





GROSS PROFIT:








New vehicle retail sales

$

79,019


$

87,883


(10.1)


(8.6)

Used vehicle retail sales

39,437


39,947


(1.3)


(0.3)

Used vehicle wholesale sales

264


(2,328)


111.3


112.7

Total used

39,701


37,619


5.5


6.7

Parts and service

179,869


180,416


(0.3)


0.6

Finance, insurance and other, net

118,624


113,007


5.0


5.8

Total

$

417,213


$

418,925


(0.4)


0.6

UNITS SOLD:








Retail new vehicles sold

40,358


44,166


(8.6)



Retail used vehicles sold

34,347


31,609


8.7



Wholesale used vehicles sold

11,450


13,404


(14.6)



Total used

45,797


45,013


1.7



AVERAGE RETAIL SALES PRICE:








New vehicle retail

$

37,398


$

37,041


1.0


2.2

Used vehicle retail

$

21,401


$

22,121


(3.3)


(2.2)

GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$

1,958


$

1,990


(1.6)


Used vehicle retail sales

1,148


1,264


(9.2)


(8.2)

Used vehicle wholesale sales

23


(174)


113.2


114.8

Total used

867


836


3.7


4.9

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

$

1,588


$

1,491


6.5


7.3

OTHER:








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

$

117,549


$

113,007


4.0


4.8

Adjusted Total revenue (2)

$

2,789,615


$

2,876,798


(3.0)


(1.9)

Adjusted Total gross profit (2)

$

416,138


$

418,925


(0.7)


0.4

Adjusted Total gross margin (2)

14.9


14.6





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

$

1,574


$

1,491


5.6


6.3

SG&A expenses

$

307,954


$

304,422


1.2


2.4

Adjusted SG&A expenses (2)

$

306,667


$

303,947


0.9


2.1

SG&A as % revenues

11.0


10.6





Adjusted SG&A as % revenues (2)

11.0


10.6





SG&A as % gross profit

73.8


72.7





Adjusted SG&A as % gross profit (2)

73.7


72.6





Operating margin %

2.7


3.2





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.

(3) Finance, insurance and other revenue represents fees earned for the financing of vehicle sales transactions and from the sale of insurance and vehicle service contracts. Such amounts are reported net of estimated amounts to be charged back in the future. As a result, finance, insurance and other revenue and gross profit are the same.

 

Group 1 Automotive, Inc.

Additional Information - Same Store Consolidated (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)




Twelve Months Ended December 31,


2018


2017


% Increase/
(Decrease)


Constant Currency (2)
% Increase/(Decrease)

REVENUES:








New vehicle retail sales

$

5,823,673


$

6,089,164


(4.4)


(4.3)

Used vehicle retail sales

2,952,738


2,763,994


6.8


6.5

Used vehicle wholesale sales

334,712


393,973


(15.0)


(15.6)

Total used

3,287,450


3,157,967


4.1


3.8

Parts and service

1,359,516


1,322,600


2.8


2.8

Finance, insurance and other, net

446,148


423,801


5.3


5.3

Total

$

10,916,787


$

10,993,532


(0.7)


(0.8)

GROSS MARGIN %:








New vehicle retail sales

5.1


5.2





Used vehicle retail sales

5.9


6.4





Used vehicle wholesale sales

0.7


(0.7)





Total used

5.4


5.5





Parts and service

53.4


53.8





Finance, insurance and other, net

100.0


100.0





Total

15.1


14.8





GROSS PROFIT:








New vehicle retail sales

$

295,418


$

318,212


(7.2)


(6.9)

Used vehicle retail sales

174,262


176,067


(1.0)


(1.2)

Used vehicle wholesale sales

2,430


(2,643)


191.9


196.8

Total used

176,692


173,424


1.9


1.8

Parts and service

725,624


711,610


2.0


1.9

Finance, insurance and other, net

446,148


423,801


5.3


5.3

Total

$

1,643,882


$

1,627,047


1.0


1.1

UNITS SOLD:








Retail new vehicles sold

160,236


170,346


(5.9)



Retail used vehicles sold

138,520


128,509


7.8



Wholesale used vehicles sold

49,285


56,292


(12.4)



Total used

187,805


184,801


1.6



AVERAGE RETAIL SALES PRICE:








New vehicle retail

$

36,344


$

35,746


1.7


1.7

Used vehicle retail

$

21,316


$

21,508


(0.9)


(1.2)

GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$

1,844


$

1,868


(1.3)


(1.0)

Used vehicle retail sales

1,258


1,370


(8.2)


(8.3)

Used vehicle wholesale sales

49


(47)


204.3


210.5

Total used

941


938


0.3


0.2

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

$

1,493


$

1,418


5.3


5.3

OTHER:








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

$

445,073


$

430,351


3.4


3.4

Adjusted Total revenue (2)

$

10,915,712


$

11,000,082


(0.8)


(0.8)

Adjusted Total gross profit (2)

$

1,642,807


$

1,633,597


0.6


0.6

Adjusted Total gross margin (2)

15.0


14.9





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

$

1,490


$

1,440


3.5


3.5

SG&A expenses

$

1,224,480


$

1,209,171


1.3


1.4

Adjusted SG&A expenses (2)

$

1,216,215


$

1,199,931


1.4


1.4

SG&A as % revenues

11.2


11.0





Adjusted SG&A as % revenues (2)

11.1


10.9





SG&A as % gross profit

74.5


74.3





Adjusted SG&A as % gross profit (2)

74.0


73.5





Operating margin %

2.9


3.1





Adjusted operating margin % (2)

3.3


3.4






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

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

(3) Finance, insurance and other revenue represents fees earned for the financing of vehicle sales transactions and from the sale of insurance and vehicle service contracts. Such amounts are reported net of estimated amounts to be charged back in the future. As a result, finance, insurance and other revenue and gross profit are the same.

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands)






Three Months Ended December 31,



2018


2017


% Increase/
(Decrease)

FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:







As reported

$

106,032


$

99,200


6.9


  Pre-tax adjustments:







Catastrophic events

(1,075)





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

$

104,957


$

99,200


5.8

TOTAL REVENUES RECONCILIATION:







As reported

$

2,266,540


$

2,287,197


(0.9)


  Pre-tax adjustments:







Catastrophic events

(1,075)





Adjusted Total Revenues (1)

$

2,265,465


$

2,287,197


(1.0)

TOTAL GROSS PROFIT RECONCILIATION:







As reported

$

352,480


$

350,678


0.5


  Pre-tax adjustments:







Catastrophic events

(1,075)





Adjusted Total Gross Profit (1)

$

351,405


$

350,678


0.2

SG&A RECONCILIATION:







As reported

$

252,634


$

242,070


4.4


  Pre-tax adjustments:







Catastrophic events

(605)





Gain (loss) on real estate and dealership transactions

(327)





Legal settlements

(682)





Adjusted SG&A (1)

$

251,020


$

242,070


3.7

TOTAL GROSS MARGIN %:







Unadjusted

15.6


15.3




Adjusted (1)

15.5


15.3



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







Unadjusted

$

1,778


$

1,700


4.6


Adjusted (1)

$

1,760


$

1,700


3.5

SG&A AS % REVENUES:







Unadjusted

11.1


10.6




Adjusted (1)

11.1


10.6



SG&A AS % GROSS PROFIT:







Unadjusted

71.7


69.0




Adjusted (1)

71.4


69.0



OPERATING MARGIN %:







Unadjusted

3.1


4.1




Adjusted (1), (2)

3.8


4.2



PRETAX MARGIN %:







Unadjusted

1.7


2.8




Adjusted (1), (2)

2.5


2.9



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







As reported

$

103,412


$

97,593


6.0


  Pre-tax adjustments:







Catastrophic events

(1,075)





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

$

102,337


$

97,593


4.9

SAME STORE TOTAL REVENUES RECONCILIATION:







As reported

$

2,216,414


$

2,246,278


(1.3)


  Pre-tax adjustments:







Catastrophic events

(1,075)





Adjusted Total Revenues (1)

$

2,215,339


$

2,246,278


(1.4)

SAME STORE TOTAL GROSS PROFIT RECONCILIATION:







As reported

$

345,721


$

344,390


0.4


  Pre-tax adjustments:







Catastrophic events

(1,075)





Adjusted Total Gross Profit (1)

$

344,646


$

344,390


0.1

SAME STORE SG&A RECONCILIATION:







As reported

$

243,619


$

237,470


2.6


  Pre-tax adjustments:







Catastrophic events

(605)





Legal settlements

(682)





Adjusted Same Store SG&A (1)

$

242,332


$

237,470


2.0

SAME STORE TOTAL GROSS MARGIN %:







Unadjusted

15.6


15.3




Adjusted (1)

15.6


15.3



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







Unadjusted

$

1,785


$

1,697


5.2


Adjusted (1)

$

1,767


$

1,697


4.1

SAME STORE SG&A AS % REVENUES:







Unadjusted

11.0


10.6




Adjusted (1)

10.9


10.6



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

70.5


69.0




Adjusted (1)

70.3


69.0



SAME STORE OPERATING MARGIN %:







Unadjusted

3.3


4.2




Adjusted (1), (3)

4.0


4.2





(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 Revenues and SG&A reconciling items above, as well as non-cash asset impairment charges of $15,971 for the three months ended December 31, 2018 and $3,236 for the three months ended December 31, 2017.

(3)

Excludes the impact of Same Store Revenues and SG&A reconciling items above, as well as non-cash asset impairment charges of $15,971 for the three months ended December 31, 2018 and $1,514 for the three months ended December 31, 2017.

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands)






Twelve Months Ended December 31,



2018


2017


% Increase/
(Decrease)

FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:







As reported

$

401,271


$

375,954


6.7


  Pre-tax adjustments:







Catastrophic events

(1,075)


6,550




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

$

400,196


$

382,504


4.6

TOTAL REVENUES RECONCILIATION:








As reported

$

8,723,257


$

8,680,565


0.5


  Pre-tax adjustments:







Catastrophic events

(1,075)


6,550




Adjusted Total Revenues (1)

$

8,722,182


$

8,687,115


0.4

TOTAL GROSS PROFIT RECONCILIATION:







As reported

$

1,391,306


$

1,365,314


1.9


  Pre-tax adjustments:







Catastrophic events

(1,075)


6,550




Adjusted Total Gross Profit (1)

$

1,390,231


$

1,371,864


1.3

SG&A RECONCILIATION:







As reported

$

982,064


$

983,974


(0.2)


  Pre-tax adjustments:







Catastrophic events

(6,417)


(8,792)




Gain (loss) on real estate and dealership transactions

25,186


(798)




Legal settlements

(1,285)


1,113




Adjusted SG&A (1)

$

999,548


$

975,497


2.5

TOTAL GROSS MARGIN %:







Unadjusted

15.9


15.7




Adjusted (1)

15.9


15.8



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







Unadjusted

$

1,710


$

1,647


3.8


Adjusted (1)

$

1,705


$

1,675


1.8

SG&A AS % REVENUES:







Unadjusted

11.3


11.3




Adjusted (1)

11.5


11.2



SG&A AS % OF GROSS PROFIT:







Unadjusted

70.6


72.1




Adjusted (1)

71.9


71.1



OPERATING MARGIN %:







Unadjusted

3.6


3.7




Adjusted (1), (2)

3.9


4.0



PRETAX MARGIN %:







Unadjusted

2.2


2.4




Adjusted (1), (2)

2.5


2.7



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







As reported

$

391,730


$

371,932


5.3


  Pre-tax adjustments:







Catastrophic events

(1,075)


6,550




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

$

390,655


$

378,482


3.2

SAME STORE TOTAL REVENUES RECONCILIATION:







As reported

$

8,536,524


$

8,596,934


(0.7)


  Pre-tax adjustments:







Catastrophic events

(1,075)


6,550




Adjusted Total Revenues (1)

$

8,535,449


$

8,603,484


(0.8)

SAME STORE TOTAL GROSS PROFIT RECONCILIATION:







As reported

$

1,363,800


$

1,351,333


0.9


  Pre-tax adjustments:







Catastrophic events

(1,075)


6,550




Adjusted Total Gross Profit (1)

$

1,362,725


$

1,357,883


0.4

SAME STORE SG&A RECONCILIATION:







As reported

$

979,531


$

973,412


0.6


  Pre-tax adjustments:







Catastrophic events

(6,417)


(8,792)




Gain (loss) on real estate and dealership transactions

2,372


(798)




Legal settlements

(1,285)


1,113




Adjusted Same Store SG&A (1)

$

974,201


$

964,935


1.0

SAME STORE TOTAL GROSS MARGIN %:







Unadjusted

16.0


15.7




Adjusted (1)

16.0


15.8



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







Unadjusted

$

1,707


$

1,641


4.0


Adjusted (1)

$

1,703


$

1,670


2.0

SAME STORE SG&A AS % REVENUES:







Unadjusted

11.5


11.3




Adjusted (1)

11.4


11.2



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

71.8


72.0




Adjusted (1)

71.5


71.1



SAME STORE OPERATING MARGIN %:







Unadjusted

3.4


3.7




Adjusted (1), (3)

3.9


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 Revenues and SG&A reconciling items above, as well as non-cash asset impairment charges of $43,398 for the twelve months ended December 31, 2018 and $12,762 for the twelve months ended December 31, 2017.

(3)

Excludes the impact of Same Store Revenues and SG&A reconciling items above, as well as non-cash asset impairment charges of $42,154 for the twelve months ended December 31, 2018 and $11,034 for the twelve months ended December 31, 2017.

 

Group 1 Automotive, Inc.

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

(Unaudited)

 (Dollars in thousands)






Three Months Ended December 31,



2018


2017


% Increase/
(Decrease)

OPERATING MARGIN %:







Unadjusted

0.4


0.8




Adjusted (1), (2)

0.5


0.8



PRETAX MARGIN %:







Unadjusted

(0.2)


0.3




Adjusted (1), (2)

(0.1)


0.3



SAME STORE OPERATING MARGIN %:







Unadjusted

0.3


0.8




Adjusted (1), (2)

0.4


0.8





(1)

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

(2)

Excludes the impact of non-cash asset impairment charges of $485 for the three months ended December 31, 2018.

 

Group 1 Automotive, Inc.

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

(Unaudited)

 (Dollars in thousands)






Twelve Months Ended December 31,



2018


2017


% Increase/
(Decrease)

SG&A RECONCILIATION:







As reported

$

240,403


$

191,570


25.5


  Pre-tax adjustments:







Acquisition costs


(288)




Adjusted SG&A (1)

$

240,403


$

191,282


25.7

SG&A AS % REVENUES:







Unadjusted

9.9


9.6




Adjusted (1)

9.9


9.6



SG&A AS % OF GROSS PROFIT:







Unadjusted

85.9


85.0




Adjusted (1)

85.9


84.9



OPERATING MARGIN %:







Unadjusted

1.1


1.3




Adjusted (1), (2)

1.1


1.3



PRETAX MARGIN %:







Unadjusted

0.5


0.9




Adjusted (1), (2)

0.6


0.9



SAME STORE SG&A RECONCILIATION:







As reported

$

196,899


$

186,160


5.8


  Pre-tax adjustments:







Acquisition costs


(288)




Adjusted Same Store SG&A (1)

$

196,899


$

185,872


5.9

SAME STORE SG&A AS % REVENUES:







Unadjusted

10.1


9.6




Adjusted (1)

10.1


9.6



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

86.3


84.1




Adjusted (1)

86.3


84.0



SAME STORE OPERATING MARGIN %:







Unadjusted

1.0


1.4




Adjusted (1), (3)

1.1


1.4





(1)

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

(2)

Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $485 for the twelve months ended December 31, 2018.

(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $485 for the twelve months ended December 31, 2018.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Brazil

(Unaudited)

 (Dollars in thousands)






Three Months Ended December 31,



2018


2017


% Increase/
(Decrease)

SG&A RECONCILIATION:







As reported

$

12,368


$

13,356


(7.4)


Severance costs


(475)




Adjusted SG&A (1)

$

12,368


$

12,881


(4.0)

SG&A AS % REVENUES:







Unadjusted

10.5


10.7




Adjusted (1)

10.5


10.3



SG&A AS % GROSS PROFIT:







Unadjusted

84.4


91.7




Adjusted (1)

84.4


88.4



OPERATING MARGIN %:







Unadjusted

1.6


(4.7)




Adjusted (1), (2)

1.6


1.1



PRETAX MARGIN %:







Unadjusted

1.3


(4.9)




Adjusted (1), (2)

1.3


0.9



SAME STORE SG&A RECONCILIATION:







As reported

$

11,472


$

13,459


(14.8)


  Pre-tax adjustments:







Severance costs


(475)




Adjusted Same Store SG&A (1)

$

11,472


$

12,984


(11.6)

SAME STORE SG&A AS % REVENUES:







Unadjusted

10.5


10.7




Adjusted (1)

10.5


10.4



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

83.4


92.4




Adjusted (1)

83.4


89.1



SAME STORE OPERATING MARGIN %:







Unadjusted

1.7


(4.8)




Adjusted (1), (3)

1.7


1.0





(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 $6,744 for the three months ended December 31, 2017.

(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $6,744 for the three months ended December 31, 2017.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Brazil

(Unaudited)

 (Dollars in thousands)










Twelve Months Ended December 31,



2018


2017


% Increase/
(Decrease)

SG&A RECONCILIATION:







As reported

$

50,590


$

50,651


(0.1)


  Pre-tax adjustments:







Severance costs


(475)




Legal settlements

(3,670)





Adjusted SG&A (1)

$

46,920


$

50,176


(6.5)

SG&A AS % REVENUES:







Unadjusted

11.5


11.1




Adjusted (1)

10.6


11.0



SG&A AS % OF GROSS PROFIT:







Unadjusted

93.9


92.2




Adjusted (1)

87.1


91.3



OPERATING MARGIN %:







Unadjusted

0.4


(0.9)




Adjusted (1), (2)

1.2


0.7



PRETAX MARGIN %:







Unadjusted


(1.0)




Adjusted (1), (2)

0.8


0.6



SAME STORE SG&A RECONCILIATION:







As reported

$

48,050


$

49,599


(3.1)


  Pre-tax adjustments:







Severance costs


(475)




Legal settlements

(2,934)





Adjusted Same Store SG&A (1)

$

45,116


$

49,124


(8.2)

SAME STORE SG&A AS % REVENUES:







Unadjusted

11.4


11.0




Adjusted (1)

10.7


10.9



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

92.6


91.0




Adjusted (1)

87.0


90.2



SAME STORE OPERATING MARGIN %:







Unadjusted

0.5


(0.7)




Adjusted (1), (3)

1.2


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 $6,744 for the twelve months ended December 31, 2017.

(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $6,744 for the twelve months ended December 31, 2017.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Consolidated

(Unaudited)

 (Dollars in thousands, except per share amounts)






Three Months Ended December 31,



2018


2017


% Increase/
(Decrease)

NET INCOME RECONCILIATION:







As reported







  Pretax Net Income

$

39,683


$

58,974




  Income Tax Provision

(8,965)


51,515




    Net Income

$

30,718


$

110,489


(72.2)


      Effective Tax Rate

22.6%


(87.4)%




Adjustments:







Catastrophic events







Pre-tax

(470)





Tax impact

114





(Gain) loss on real estate and dealership transactions







Pre-tax

327





Tax impact

(79)





Severance costs







Pre-tax


475




Tax impact


(122)




Legal settlements







Pre-tax

682





Tax impact

(167)





Non-cash asset impairment







Pre-tax

16,456


9,979




Tax impact

(3,775)


(3,515)




Tax rate changes







Pre-tax





Tax impact


(73,028)




Adjusted







  Pretax Net Income

$

56,678


$

69,428




  Income Tax Provision

(12,872)


(25,150)




Adjusted net income (1)

$

43,806


$

44,278


(1.1)


      Effective Tax Rate

22.7%


36.2%



ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION:







Adjusted net income (1)

$

43,806


$

44,278


(1.1)


Less: Adjusted earnings allocated to participating securities

1,567


1,483


5.6


Adjusted net income available to diluted common shares (1)

$

42,239


$

42,795


(1.3)

DILUTED (LOSS) INCOME PER COMMON SHARE RECONCILIATION:







As reported

$

1.62


$

5.27


(69.3)


  After-tax adjustments:







Catastrophic events

(0.02)





(Gain) loss on real estate and dealership transactions

0.01





Severance costs


0.02




Legal settlements

0.03





Non-cash asset impairment

0.67


0.30




Tax rate changes


(3.48)




Adjusted diluted income per share (1)

$

2.31


$

2.11


9.5

FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:







As reported

$

123,991


$

114,705


8.1


  Pre-tax adjustments:







Catastrophic events

(1,075)





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

$

122,916


$

114,705


7.2

TOTAL REVENUES RECONCILIATION:







As reported

$

2,908,812


$

2,920,405


(0.4)


  Pre-tax adjustments:







Catastrophic events

(1,075)





Adjusted Total Revenues (1)

$

2,907,737


$

2,920,405


(0.4)

TOTAL GROSS PROFIT RECONCILIATION:







As reported

$

432,066


$

425,675


1.5


  Pre-tax adjustments:







Catastrophic events

(1,075)





Adjusted Total Gross Profit (1)

$

430,991


$

425,675


1.2

SG&A RECONCILIATION:







As reported

$

323,847


$

309,521


4.6


  Pre-tax adjustments:







Catastrophic events

(605)





Gain (loss) on real estate and dealership transactions

(327)





Severance costs


(475)




Legal settlements

(682)





Adjusted SG&A (1)

$

322,233


$

309,046


4.3

TOTAL GROSS MARGIN %:







Unadjusted

14.9


14.6




Adjusted (1)

14.8


14.6



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







Unadjusted

$

1,582


$

1,495


5.8


Adjusted (1)

$

1,568


$

1,495


4.9

SG&A AS % REVENUES:







Unadjusted

11.1


10.6




Adjusted (1)

11.1


10.6



SG&A AS % GROSS PROFIT:







Unadjusted

75.0


72.7




Adjusted (1)

74.8


72.6



OPERATING MARGIN %:







Unadjusted

2.6


3.1




Adjusted (1), (2)

3.2


3.5



PRETAX MARGIN %:







Unadjusted

1.4


2.0




Adjusted (1), (2)

1.9


2.4



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






As reported

$

118,624


$

113,007


5.0


  Pre-tax adjustments:







Catastrophic events

(1,075)





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

$

117,549


$

113,007


4.0

SAME STORE TOTAL REVENUES RECONCILIATION:







As reported

$

2,790,690


$

2,876,798


(3.0)


  Pre-tax adjustments:







Catastrophic events

(1,075)





Adjusted Total Revenues (1)

$

2,789,615


$

2,876,798


(3.0)

SAME STORE TOTAL GROSS PROFIT RECONCILIATION:







As reported

$

417,213


$

418,925


(0.4)


  Pre-tax adjustments:







Catastrophic events

(1,075)





Adjusted Total Gross Profit (1)

$

416,138


$

418,925


(0.7)

SAME STORE SG&A RECONCILIATION:







As reported

$

307,954


$

304,422


1.2


  Pre-tax adjustments:







Catastrophic events

(605)





Severance costs


(475)




Legal settlements

(682)





Adjusted Same Store SG&A (1)

$

306,667


$

303,947


0.9

SAME STORE TOTAL GROSS MARGIN %:







Unadjusted

15.0


14.6




Adjusted (1)

14.9


14.6



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







Unadjusted

$

1,588


$

1,491


6.5


Adjusted (1)

$

1,574


$

1,491


5.6

SAME STORE SG&A AS % REVENUES:







Unadjusted

11.0


10.6




Adjusted (1)

11.0


10.6



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

73.8


72.7




Adjusted (1)

73.7


72.6



SAME STORE OPERATING MARGIN %:







Unadjusted

2.7


3.2




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 Revenues and SG&A reconciling items above, as well as non-cash asset impairment charges of $16,456 for the three months ended December 31, 2018 and $9,980 for the three months ended December 31, 2017.

(3)

Excludes the impact of Same Store Revenues and SG&A reconciling items above, as well as non-cash asset impairment charges of $16,456 for the three months ended December 31, 2018 and $8,258 for the three months ended December 31, 2017.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Consolidated

(Unaudited)

 (Dollars in thousands, except per share amounts)






Twelve Months Ended December 31, 2018



2018


2017


% Increase/
(Decrease)

NET INCOME RECONCILIATION:







As reported







  Pretax Net Income

$

205,403


$

219,003




  Income Tax Provision

(47,631)


(5,561)




    Net Income

$

157,772


$

213,442


(26.1)


      Effective Tax Rate

23.2%


2.5%




Adjustments:







Catastrophic events







Pre-tax

5,342


15,342




Tax impact

(1,330)


(5,926)




(Gain) loss on real estate and dealership transactions







Pre-tax

(25,186)


798




Tax impact

6,087


(301)




Severance costs







Pre-tax


475




Tax impact


(122)




Acquisition costs







Pre-tax


288




Tax impact





Legal settlements







Pre-tax

4,955


(1,113)




Tax impact

(854)


426




Non-cash asset impairment







Pre-tax

43,883


19,505




Tax impact

(10,368)


(7,094)




Allowance for uncertain tax positions







Pre-tax





Tax impact


834




Tax rate changes







Pre-tax







Tax impact

(705)


(73,028)




Adjusted







  Pretax Net Income

$

234,397


$

254,298




  Income Tax Provision

(54,801)


(90,772)




Adjusted net income (1)

$

179,596


$

163,526


9.8


      Effective Tax Rate

23.4%


35.7%



ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION:







Adjusted net income (1)

$

179,596


$

163,526


9.8


Less: Adjusted earnings allocated to participating securities

6,169


5,738


7.5


Adjusted net income available to diluted common shares (1)

$

173,427


$

157,788


9.9

DILUTED INCOME PER COMMON SHARE RECONCILIATION:







As reported

$

7.83


$

10.08


(22.3)


  After-tax adjustments:







Catastrophic events

0.20


0.45




(Gain) loss on real estate and dealership transactions

(0.95)


0.03




Severance costs


0.01




Acquisition costs including related tax impact


0.01




Legal settlements

0.21


(0.03)




Non-cash asset impairment

1.65


0.59




Allowance for uncertain tax positions


0.04




Tax rate changes

(0.03)


(3.45)




Adjusted diluted income per share (1)

$

8.91


$

7.73


15.3

FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:







As reported

$

467,453


$

429,002


9.0


  Pre-tax adjustments:







Catastrophic events

(1,075)


6,550




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

$

466,378


$

435,552


7.1

TOTAL REVENUES RECONCILIATION:







As reported

$

11,601,358


$

11,123,721


4.3


  Pre-tax adjustments:







Catastrophic events

(1,075)


6,550




Adjusted Total Revenues (1)

$

11,600,283


$

11,130,271


4.2

TOTAL GROSS PROFIT RECONCILIATION:







As reported

$

1,725,093


$

1,645,509


4.8


  Pre-tax adjustments:







Catastrophic events

(1,075)


6,550




Adjusted Total Gross Profit (1)

$

1,724,018


$

1,652,059


4.4

SG&A RECONCILIATION:







As reported

$

1,273,057


$

1,226,195


3.8


  Pre-tax adjustments:







Catastrophic events

(6,417)


(8,792)




Gain (loss) on real estate and dealership transactions

25,186


(798)




Severance costs


(475)




Acquisition costs


(288)




Legal settlements

(4,955)


1,113




Adjusted SG&A (1)

$

1,286,871


$

1,216,955


5.7

TOTAL GROSS MARGIN %:







Unadjusted

14.9


14.8




Adjusted (1)

14.9


14.8



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







Unadjusted

$

1,468


$

1,420


3.4


Adjusted (1)

$

1,464


$

1,442


1.5

SG&A AS % REVENUES:







Unadjusted

11.0


11.0




Adjusted (1)

11.1


10.9



SG&A AS % OF GROSS PROFIT:







Unadjusted

73.8


74.5




Adjusted (1)

74.6


73.7



OPERATING MARGIN %:







Unadjusted

2.9


3.1




Adjusted (1), (2)

3.2


3.4



PRETAX MARGIN %:







Unadjusted

1.8


2.0




Adjusted (1), (2)

2.0


2.3



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






As reported

$

446,148


$

423,801


5.3


  Pre-tax adjustments:







Catastrophic events

(1,075)


6,550




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

$

445,073


$

430,351


3.4

SAME STORE TOTAL REVENUES RECONCILIATION:







As reported

$

10,916,787


$

10,993,532


(0.7)


  Pre-tax adjustments:







Catastrophic events

(1,075)


6,550




Adjusted Total Revenues (1)

$

10,915,712


$

11,000,082


(0.8)

SAME STORE TOTAL GROSS PROFIT RECONCILIATION:







As reported

$

1,643,882


$

1,627,047


1.0


  Pre-tax adjustments:







Catastrophic events

(1,075)


6,550




Adjusted Total Gross Profit (1)

$

1,642,807


$

1,633,597


0.6

SAME STORE SG&A RECONCILIATION:







As reported

$

1,224,480


$

1,209,171


1.3


  Pre-tax adjustments:







Catastrophic events

(6,417)


(8,792)




Gain (loss) on real estate and dealership transactions

2,372


(798)




Severance costs


(475)




Acquisition costs


(288)




Legal settlements

(4,220)


1,113




Adjusted Same Store SG&A (1)

$

1,216,215


$

1,199,931


1.4

SAME STORE TOTAL GROSS MARGIN %:







Unadjusted

15.1


14.8




Adjusted (1)

15.0


14.9



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







Unadjusted

$

1,493


$

1,418


5.3


Adjusted (1)

$

1,490


$

1,440


3.5

SAME STORE SG&A AS % REVENUES:







Unadjusted

11.2


11.0




Adjusted (1)

11.1


10.9



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

74.5


74.3




Adjusted (1)

74.0


73.5



SAME STORE OPERATING MARGIN %:







Unadjusted

2.9


3.1




Adjusted (1), (3)

3.3


3.4





(1)

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

(2)

Excludes the impact of Revenues and SG&A reconciling items above, as well as non-cash asset impairment charges of $43,883 for the twelve months ended December 31, 2018 and $19,506 for twelve months ended December 31, 2017.

(3)

Excludes the impact of Same Store Revenues and SG&A reconciling items above, as well as non-cash asset impairment charges of $42,639 for the twelve months ended December 31, 2018 and $17,778 for the twelve months ended December 31, 2017.

 

Cision View original content:http://www.prnewswire.com/news-releases/group-1-automotive-reports-fourth-quarter--full-year-2018-financial-results-300789587.html

SOURCE Group 1 Automotive, Inc.