GPI
$78.22
Group 1 Automotive
($.22)
(.28%)
Earnings Details
3rd Quarter September 2017
Thursday, October 26, 2017 7:07:00 AM
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Summary

Group 1 Automotive (GPI) Recent Earnings

Group 1 Automotive (GPI) reported 3rd Quarter September 2017 earnings of $2.23 per share on revenue of $3.0 billion. The consensus earnings estimate was $1.84 per share on revenue of $2.8 billion. Revenue grew 6.7% on a year-over-year basis.

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

Results
Reported Earnings
$2.23
Earnings Whisper
-
Consensus Estimate
$1.84
Reported Revenue
$3.01 Bil
Revenue Estimate
$2.83 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Group 1 Automotive Reports Third Quarter 2017 Financial Results

Group 1 Automotive, Inc. (GPI), ("Group 1" or the "Company"), an international, Fortune 500 automotive retailer, today reported 2017 third quarter net income of $29.9 million, diluted earnings per common share of $1.43, adjusted net income (a non-GAAP measure) of $46.6 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $2.23.

Third quarter 2017 adjusted net income and diluted earnings per share exclude approximately $16.8 million of net, after-tax adjustments, or $0.80 per share, for non-core items. These adjustments primarily consist of costs directly associated with Hurricane Harvey of approximately $9.0 million after-tax, or $0.44 per share; and, franchise right impairments of $5.9 million after-tax, or $0.28 per share. Reconciliations of non-GAAP financial measures are included in the attached financial tables.

"While the Company’s third quarter results were negatively affected by both the non-recurring costs from Hurricane Harvey, as well as business disruption for more than a week across our largest revenue-generating market, strong demand for replacement vehicles in September provided significant financial recovery," said Earl J. Hesterberg, Group 1’s president and chief executive officer. "We expect this recovery to continue for a number of months, as the region continues to rebuild from Hurricane Harvey’s widespread impact. Our overseas businesses were also positive factors in our third quarter results. Although the U.K. new vehicle market declined roughly nine percent in the third quarter, we significantly outperformed the industry with our Same Store new vehicle unit sales rising 2.9 percent. Our used vehicle and F&I businesses were up almost 10 percent driving a total Same Store revenue increase of nine percent on a local currency basis. In Brazil, our operations delivered another quarter of profitability, with gross profit up 19.4 percent on a Same Store constant currency basis, reflecting continued double-digit growth in used, aftersales, and F&I. Our combined performance in all three markets delivered record revenues, gross profit, and adjusted earnings for the quarter."

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

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

Total revenue increased 6.7 percent (increased 6.6 percent) to a record $3.0 billion; total gross profit increased 6.1 percent (increased 6.0 percent) to a record $431.4 million.

New vehicle revenues increased 7.7 percent (increased 7.5 percent) on a 6.0 percent increase in unit sales. New vehicle gross profit increased 9.8 percent (increased 9.6 percent) to a record $88.3 million. U.S. new vehicle margins were up 6.1 percent, or $108 per unit, to $1,891.

Retail used vehicle revenues increased 5.8 percent (increased 5.7 percent) on a 4.1 percent increase in unit sales. Retail used vehicle gross profit increased 2.5 percent (increased 2.5 percent) to $47.1 million as the unit sales increase was partially offset by a slight margin decrease of 1.4 percent (decreased 1.5 percent), or $20 per unit, to $1,372.

Parts and service gross profit increased 6.8 percent (increased 6.7 percent) on revenue growth of 7.4 percent (increased 7.3 percent). Same Store parts and service gross profit increased 4.5 percent (increased 4.4 percent) on revenue growth of 5.1 percent (increased 5.0 percent). U.S. Same Store parts and service revenue increased 4.7 percent.

Finance and Insurance (F&I) gross profit per retail unit (PRU) decreased 2.9 percent (decreased 3.0 percent) to $1,343 per retail unit. Adjusted F&I gross profit PRU (a non-GAAP measure) increased 2.8 percent (increased 2.8 percent) to $1,422, reflecting increases in all three regions.

Selling, General and Administrative (SG&A) expenses as a percent of gross profit increased 260 basis points to 76.1 percent. Adjusted SG&A expenses as a percent of gross profit (a non-GAAP measure) decreased 80 basis points to 72.8 percent.

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

United States: The Company’s U.S. operations accounted for 76.4 percent of total revenues and 82.0 percent of total gross profit. On a Same Store basis, U.S. revenues were $2.3 billion, an increase of 1.5 percent. Adjusted U.S. revenue (a non-GAAP measure) increased 1.8 percent, reflecting 3.6 percent growth in new vehicles and a 4.7 percent increase in aftersales revenue. The aftersales growth came in spite of losing more than a week of operations in the key markets of Houston/Beaumont, Miami, and portions of the Gulf Coast. Total U.S. Same Store gross profit grew 2.1 percent. Adjusted total U.S. Same Store gross profit (a non-GAAP measure) increased 4.0 percent.

United Kingdom: The Company’s U.K. operations accounted for 19.6 percent of total revenues and 14.7 percent of total gross profit. On a Same Store basis, new vehicle unit sales increased 2.9 percent, which outperformed the U.K.’s new vehicle industry decline of 8.9 percent. Total Same Store revenue grew 8.8 percent and total Same Store gross profit grew 8.6 percent, both on a constant currency basis. This gross profit growth was driven by a 22.2 percent increase in total used vehicle gross profit, a 10.6 percent increase in aftersales gross profit, a 9.8 percent increase in F&I gross profit, and a slight increase of 0.5 percent in new vehicle gross profit, all on a constant currency basis.

Brazil: The Company’s Brazilian operations were profitable again this quarter and accounted for 4.0 percent of total revenues and 3.3 percent of total gross profit. Total Same Store revenue grew 14.0 percent (increased 11.2 percent) and total Same Store gross profit increased 22.4 percent (increased 19.4 percent), reflecting strong growth in Same Store total used vehicles gross profit of 27.7 percent (increased 24.5 percent) and a 30.9 percent increase (increased 27.8 percent) in Same Store aftersales gross profit. In addition, Same Store F&I gross profit PRU increased 30.6 percent (increased 27.4 percent). Same Store SG&A as a percentage of gross profit improved 1160 basis points (930 basis points on an adjusted basis) to 89.8 percent.

Corporate Development

As previously announced in July 2017, the Company acquired the Beadles Group Ltd in the U.K., which expanded the dealership footprint in the region to 43 stores, with expected annual revenues of $330 million. Also in July 2017, as previously announced, the Company acquired its first Jaguar and Land Rover dealerships in the U.S., which are located in Albuquerque and Santa Fe, New Mexico, and have projected annualized revenues of $40 million. Additionally, as previously announced in August 2017, the Company acquired Audi Forth Worth in Texas, which has an expected annualized revenue of $55 million. In October 2017, the Company closed a SEAT brand sales operation in Watford, England, which generated approximately $10 million in trailing-twelve-month revenues.

Year-to-date 2017, the Company has acquired 17 dealerships, which are expected to generate an estimated $490 million in annualized revenues, and the Company has disposed of three dealerships, which generated approximately $35 million in trailing-twelve-month revenues.

Share Repurchase Authorization

During the third quarter 2017, the Company repurchased approximately 20,000 shares at an average price per common share of $53.46 for a total of $1.1 million. Year to date, we have spent $40.1 million to repurchase approximately 650 thousand shares at an average price per common share of $61.75. These repurchases represent three percent of the total outstanding common shares at the beginning of 2017. As of September 30, 2017, $49.6 million remains available under the Company’s current common stock share repurchase authorization, which was reset in May 2017.

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

Third Quarter 2017 Earnings Conference Call Details

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

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

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

Domestic:
1-888-317-6003
International: 1-412-317-6061
Conference ID: 7378333

A telephonic replay will be available following the call through November 1, 2017 by dialing:

Domestic:
1-877-344-7529
International: 1-412-317-0088
Replay ID:
10113415

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

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

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

NON-GAAP FINANCIAL MEASURES

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

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

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

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

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

Group 1 Automotive, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended September 30,
2017
2016
% Increase/
(Decrease)
REVENUES:
New vehicle retail sales
$ 1,710,241
$ 1,587,952
7.7
Used vehicle retail sales
743,038
702,620
5.8
Used vehicle wholesale sales
104,827
104,218
0.6
Parts and service
343,193
319,676
7.4
Finance, insurance and other, net
110,993
108,710
2.1
Total revenues
3,012,292
2,823,176
6.7
COST OF SALES:
New vehicle retail sales
1,621,909
1,507,517
7.6
Used vehicle retail sales
695,915
656,652
6.0
Used vehicle wholesale sales
105,012
106,077
(1.0)
Parts and service
158,036
146,262
8.0
Total cost of sales
2,580,872
2,416,508
6.8
GROSS PROFIT
431,420
406,668
6.1
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
328,327
299,006
9.8
DEPRECIATION AND AMORTIZATION EXPENSE
15,059
12,891
16.8
ASSET IMPAIRMENTS
9,526
10,855
(12.2)
OPERATING INCOME
78,508
83,916
(6.4)
OTHER EXPENSE:
Floorplan interest expense
(13,491)
(11,135)
21.2
Other interest expense, net
(17,874)
(17,094)
4.6
INCOME BEFORE INCOME TAXES
47,143
55,687
(15.3)
PROVISION FOR INCOME TAXES
(17,262)
(20,321)
(15.1)
NET INCOME
$
29,881
$
35,366
(15.5)
Less: Earnings allocated to participating securities $
1,023
$
1,426
(28.3)
Earnings available to diluted common shares
$
28,858
$
33,940
(15.0)
DILUTED EARNINGS PER SHARE
$
1.43
$
1.65
(13.3)
Weighted average dilutive common shares outstanding
20,225
20,578
(1.7)
Weighted average participating securities
724
872
(17.0)
Total weighted average shares outstanding
20,949
21,450
(2.3)
Nine Months Ended September 30,
2017
2016
% Increase/
(Decrease)
REVENUES:
New vehicle retail sales
$ 4,496,222
$ 4,538,562
(0.9)
Used vehicle retail sales
2,089,914
2,106,569
(0.8)
Used vehicle wholesale sales
308,361
302,089
2.1
Parts and service
994,522
950,341
4.6
Finance, insurance and other, net
314,297
316,419
(0.7)
Total revenues
8,203,316
8,213,980
(0.1)
COST OF SALES:
New vehicle retail sales
4,263,752
4,305,252
(1.0)
Used vehicle retail sales
1,952,873
1,963,136
(0.5)
Used vehicle wholesale sales
308,713
302,551
2.0
Parts and service
458,144
437,153
4.8
Total cost of sales
6,983,482
7,008,092
(0.4)
GROSS PROFIT
1,219,834
1,205,888
1.2
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
916,674
891,692
2.8
DEPRECIATION AND AMORTIZATION EXPENSE
42,758
38,067
12.3
ASSET IMPAIRMENTS
9,526
12,812
(25.6)
OPERATING INCOME
250,876
263,317
(4.7)
OTHER EXPENSE:
Floorplan interest expense
(38,659)
(33,737)
14.6
Other interest expense, net
(52,188)
(50,729)
2.9
INCOME BEFORE INCOME TAXES
160,029
178,851
(10.5)
PROVISION FOR INCOME TAXES
(57,076)
(62,614)
(8.8)
NET INCOME
$
102,953
$
116,237
(11.4)
Less: Earnings allocated to participating securities $
3,659
$
4,651
(21.3)
Earnings available to diluted common shares
$
99,294
$
111,586
(11.0)
DILUTED EARNINGS PER SHARE
$
4.85
$
5.22
(7.1)
Weighted average dilutive common shares outstanding
20,480
21,364
(4.1)
Weighted average participating securities
767
895
(14.3)
Total weighted average shares outstanding
21,247
22,259
(4.5)
Group 1 Automotive, Inc.
Consolidated Balance Sheets
(Dollars in thousands)
September
December 31,
% Increase/
30, 2017
2016
(Decrease)
ASSETS:
(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents
$
66,883
$
20,992
218.6
Contracts in transit and vehicle receivables, net
288,200
269,508
6.9
Accounts and notes receivable, net
187,672
173,364
8.3
Inventories, net
1,651,789
1,651,815
(0.0)
Prepaid expenses and other current assets
38,111
34,908
9.2
Total current assets
2,232,655
2,150,587
3.8
PROPERTY AND EQUIPMENT, net
1,269,397
1,125,883
12.7
GOODWILL AND INTANGIBLE FRANCHISE RIGHTS
1,208,344
1,161,639
4.0
OTHER ASSETS
20,598
23,794
(13.4)
Total assets
$ 4,730,994
$
4,461,903
6.0
LIABILITIES AND STOCKHOLDERS’ EQUITY:
CURRENT LIABILITIES:
Floorplan notes payable - credit facility and other
$ 1,077,287
$
1,136,654
(5.2)
Offset account related to floorplan notes payable - credit facility
(46,248)
(59,626)
(22.4)
Floorplan notes payable - manufacturer affiliates
399,804
392,661
1.8
Offset account related to floorplan notes payable - manufacturer affiliates
(22,000)
(25,500)
(13.7)
Current maturities of long-term debt and short-term financing
80,996
72,419
11.8
Current liabilities from interest rate risk management activities
823
3,941
(79.1)
Accounts payable
436,851
356,099
22.7
Accrued expenses
208,770
176,469
18.3
Total current liabilities
2,136,283
2,053,117
4.1
5.00% SENIOR NOTES (principal of $550,000 at December 31, 2016 and December 31, 2015, respectively)
541,658
540,465
0.2
5.25% SENIOR NOTES (principal of $300,000 at December 31, 2016 and December 31, 2015, respectively)
296,009
295,591
0.1
ACQUISITION LINE
33,508
--
100.0
REAL ESTATE RELATED AND OTHER LONG-TERM DEBT, net of current maturities
373,466
333,326
12.0
CAPITAL LEASE OBLIGATIONS RELATED TO REAL ESTATE, net of current maturities
48,048
43,427
10.6
DEFERRED INCOME TAXES
181,244
161,502
12.2
LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES
16,157
20,470
(21.1)
OTHER LIABILITIES
93,474
83,805
11.5
STOCKHOLDERS’ EQUITY:
Common stock
255
257
(0.8)
Additional paid-in capital
288,970
290,899
(0.7)
Retained earnings
1,141,066
1,053,301
8.3
Accumulated other comprehensive loss
(126,415)
(146,944)
(14.0)
Treasury stock
(292,729)
(267,313)
9.5
Total stockholders’ equity
$ 1,011,147
$
930,200
8.7
Total liabilities and stockholders’ equity
$ 4,730,994
$
4,461,903
6.0
Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2017 (%)
2016 (%)
2017 (%)
2016 (%)
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
Region
Geographic Market
United States
Texas
37.8
36.2
36.5
36.4
California
7.0
9.4
7.6
9.3
Oklahoma
5.7
6.6
6.2
6.9
Massachusetts
4.8
5.0
4.7
4.9
Georgia
4.4
4.6
4.6
4.2
Florida
2.4
2.5
2.5
2.5
New Hampshire
1.9
2.0
2.0
1.9
Louisiana
1.9
2.2
2.0
2.1
New Jersey
1.7
1.7
1.7
1.6
Kansas
1.5
1.6
1.6
1.8
South Carolina
1.3
1.3
1.3
1.4
Mississippi
1.2
1.5
1.3
1.5
Alabama
0.9
1.0
1.0
0.9
Maryland
0.3
0.5
0.4
0.5
New Mexico
0.1
--
--
--
72.9
76.1
73.4
75.9
International
United Kingdom
22.6
18.6
21.8
18.2
Brazil
4.5
5.3
4.8
5.9
100.0
100.0
100.0
100.0
NEW VEHICLE UNIT SALES BRAND MIX:
Toyota/Scion/Lexus
26.7
25.3
25.3
24.7
Volkswagen/Audi/Porsche
13.9
11.3
13.0
10.9
BMW/MINI
11.5
13.2
12.8
13.3
Ford/Lincoln
10.6
10.8
11.5
11.1
Honda/Acura
9.0
9.9
9.2
10.2
Nissan
7.0
7.0
7.5
7.0
Chevrolet/GMC/Buick/Cadillac
6.1
7.3
6.2
7.6
Hyundai/Kia
4.2
4.3
4.0
4.4
Chrysler/Dodge/Jeep/RAM
3.9
4.1
3.9
4.1
Mercedes-Benz/smart/Sprinter
3.4
4.2
3.8
4.1
Other
3.7
2.6
2.8
2.6
100.0
100.0
100.0
100.0
Group 1 Automotive, Inc.
Additional Information - U.S.
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended September 30,
2017
2016
% Increase/
(Decrease)
REVENUES:
New vehicle retail sales
$ 1,296,267
$ 1,254,421
3.3
Used vehicle retail sales
562,031
575,551
(2.3)
Used vehicle wholesale sales
63,363
74,821
(15.3)
Total used
625,394
650,372
(3.8)
Parts and service
283,915
271,635
4.5
Finance, insurance and other, net
96,383
98,295
(1.9)
Total
$ 2,301,959
$ 2,274,723
1.2
GROSS MARGIN %:
New vehicle retail sales
5.1
4.9
Used vehicle retail sales
6.8
6.8
Used vehicle wholesale sales
(0.1)
(2.0)
Total used
6.1
5.8
Parts and service
53.8
54.8
Finance, insurance and other, net
100.0
100.0
Total
15.4
15.2
GROSS PROFIT:
New vehicle retail sales
$
66,622
$
61,886
7.7
Used vehicle retail sales
37,962
39,193
(3.1)
Used vehicle wholesale sales
(54)
(1,514)
96.4
Total used
37,908
37,679
0.6
Parts and service
152,654
148,866
2.5
Finance, insurance and other, net
96,383
98,295
(1.9)
Total
$
353,567
$
346,726
2.0
UNITS SOLD:
Retail new vehicles sold
35,233
34,700
1.5
Retail used vehicles sold
26,304
27,201
(3.3)
Wholesale used vehicles sold
9,786
11,005
(11.1)
Total used
36,090
38,206
(5.5)
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
36,791
$
36,150
1.8
Used vehicle retail
$
21,367
$
21,159
1.0
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,891
$
1,783
6.1
Used vehicle retail sales
1,443
1,441
0.1
Used vehicle wholesale sales
(6)
(138)
95.7
Total used
1,050
986
6.5
Finance, insurance and other, net (per retail unit)
$
1,566
$
1,588
(1.4)
OTHER:
Adjusted Finance, insurance and other revenue, net(1) (2)
$
102,933
$
98,295
4.7
Adjusted Total revenue (1)
$ 2,308,509
$ 2,274,723
1.5
Adjusted Total gross profit (1)
$
360,117
$
346,726
3.9
Adjusted Total gross margin(1)
15.6
15.2
Adjusted Finance, insurance and other, net (per retail unit) (1)
$
1,673
$
1,588
5.4
SG&A expenses
$
261,787
$
246,501
6.2
Adjusted SG&A expenses (1)
$
252,120
$
247,227
2.0
SG&A as % revenues
11.4
10.8
Adjusted SG&A as % revenues (1)
11.0
10.9
SG&A as % gross profit
74.0
71.1
Adjusted SG&A as % gross profit (1)
70.0
71.3
Operating margin %
3.0
3.4
Adjusted operating margin % (1)
4.1
3.9
Pretax margin %
1.8
2.3
Adjusted pretax margin % (1)
2.9
2.8
INTEREST EXPENSE:
Floorplan interest expense
$
(12,014)
$
(9,979)
20.4
Floorplan assistance
13,295
12,824
3.7
Net floorplan income
$
1,281
$
2,845
(55.0)
Other interest expense, net
$
(16,727)
$
(15,710)
6.5
Nine Months Ended September 30,
2017
2016
% Increase/
(Decrease)
REVENUES:
New vehicle retail sales
$ 3,458,287
$ 3,558,127
(2.8)
Used vehicle retail sales
1,620,171
1,709,595
(5.2)
Used vehicle wholesale sales
200,384
205,755
(2.6)
Total used
1,820,555
1,915,350
4.9
Parts and service
837,772
805,618
4.0
Finance, insurance and other, net
276,754
284,644
(2.8)
Total
$ 6,393,368
$ 6,563,739
(2.6)
GROSS MARGIN %:
New vehicle retail sales
5.1
5.0
Used vehicle retail sales
6.9
7.2
Used vehicle wholesale sales
(0.1)
(0.3)
Total used
6.2
6.4
Parts and service
53.8
54.6
Finance, insurance and other, net
100.0
100.0
Total
15.9
15.6
GROSS PROFIT:
New vehicle retail sales
$
174,831
$
177,674
(1.6)
Used vehicle retail sales
112,598
122,832
(8.3)
Used vehicle wholesale sales
(170)
(643)
73.6
Total used
112,428
122,189
(8.0)
Parts and service
450,623
43,956
2.5
Finance, insurance and other, net
276,754
284,644
(2.8)
Total
$ 1,014,636
$ 1,024,033
(0.9)
UNITS SOLD:
Retail new vehicles sold
93,533
98,692
(5.2)
Retail used vehicles sold
76,435
80,888
(5.5)
Wholesale used vehicles sold
29,468
30,894
(4.6)
Total used
105,903
111,782
(5.3)
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
36,974
$
36,053
2.6
Used vehicle retail
$
21,197
$
21,135
0.3
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,869
$
1,800
3.8
Used vehicle retail sales
1,473
1,519
(3.0)
Used vehicle wholesale sales
(6)
(21)
71.4
Total used
1,062
1,093
(2.8)
Finance, insurance and other, net (per retail unit)
$
1,628
$
1,585
2.7
OTHER:
Adjusted Finance, insurance and other revenue, net(1) (2)
$
283,304
$
284,644
(0.5)
Adjusted Total revenue (1)
$ 6,399,918
$ 6,563,739
(2.6)
Adjusted Total gross profit (1)
$ 1,021,186
$ 1,024,033
(0.3)
Adjusted Total gross margin(1)
16.0
15.6
Adjusted Finance, insurance and other, net (per retail unit) (1)
$
1,667
$
1,585
5.2
SG&A expenses
$
741,904
$
737,730
0.6
Adjusted SG&A expenses (1)
$
733,427
$
733,683
0.0
SG&A as % revenues
11.6
11.2
Adjusted SG&A as % revenues (1)
11.5
11.2
SG&A as % gross profit
73.1
72.0
Adjusted SG&A as % gross profit (1)
71.8
71.6
Operating margin %
3.6
3.7
Adjusted operating margin % (1)
3.9
3.9
Pretax margin %
2.2
2.5
Adjusted pretax margin % (1)
2.6
2.8
INTEREST EXPENSE:
Floorplan interest expense
$
(34,954)
$
(30,428)
14.9
Floorplan assistance
35,031
36,176
(3.2)
Net floorplan income
$
77
$
5,748
98.7
Other interest expense, net
$
(49,571)
$
(46,581)
6.4
(1) See the section of this release entitled "Non-GAAP Financial Measures " and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.
(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 September 30,
2017
2016
% Increase/
Constant Currency (1)
(Decrease)
% Increase/ (Decrease)
REVENUES:
New vehicle retail sales
$
334,772
$
256,143
30.7
30.3
Used vehicle retail sales
158,076
106,856
47.9
48.3
Used vehicle wholesale sales
38,647
28,586
35.2
35.5
Total used
196,723
135,442
45.2
45.6
Parts and service
46,783
35,682
31.1
31.5
Finance, insurance and other, net
12,448
8,708
42.9
42.8
Total
$
590,726
$
435,975
35.5
35.4
GROSS MARGIN %:
New vehicle retail sales
5.1
5.5
Used vehicle retail sales
4.7
4.9
Used vehicle wholesale sales
(0.9)
(1.4)
Total used
3.6
3.6
Parts and service
57.3
55.7
Finance, insurance and other, net
100.0
100.0
Total
10.8
10.9
GROSS PROFIT:
New vehicle retail sales
$
17,205
$
14,031
22.6
21.9
Used vehicle retail sales
7,471
5,265
41.9
42.3
Used vehicle wholesale sales
(347)
(404)
14.1
11.7
Total used
7,124
4,861
46.6
46.8
Parts and service
26,823
19,892
34.8
35.2
Finance, insurance and other, net
12,448
8,708
42.9
42.8
Total
$
63,600
$
47,492
33.9
33.8
UNITS SOLD:
Retail new vehicles sold
10,909
8,468
28.8
Retail used vehicles sold
7,011
4,800
46.1
Wholesale used vehicles sold
4,939
3,689
33.9
Total used
11,950
8,489
40.8
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
30,688
$
30,248
1.5
1.2
Used vehicle retail
$
22,547
$
22,262
1.3
1.5
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,577
$
1,657
(4.8)
(5.4)
Used vehicle retail sales
1,066
1,097
(2.8)
(2.6)
Used vehicle wholesale sales
(70)
(110)
36.4
34.1
Total used
596
573
4.0
4.3
Finance, insurance and other, net (per retail unit)
$
695
$
656
5.9
5.7
OTHER:
SG&A expenses
$
53,395
$
39,609
34.8
35.2
SG&A as % revenues
9.0
9.1
SG&A as % gross profit
84.0
83.4
Operating margin %
1.3
1.4
Pretax margin %
0.9
0.9
INTEREST EXPENSE:
Floorplan interest expense
$
(1,336)
$
(1,083)
23.4
23.5
Floorplan assistance
265
154
72.1
72.3
Net floorplan expense
$
(1,071)
$
(929)
15.3
15.4
Other interest expense, net
$
(1,121)
$
(1,299)
(13.7)
(13.6)
Nine Months Ended September 30,
2017
2016
% Increase/
Constant Currency (1)
(Decrease)
% Increase/ (Decrease)
REVENUES:
New vehicle retail sales
$
824,827
$
764,707
7.9
17.1
Used vehicle retail sales
401,851
339,800
18.3
28.8
Used vehicle wholesale sales
99,604
93,985
6.0
15.6
Total used
501,455
433,785
15.6
26.0
Parts and service
120,614
110,180
9.5
19.2
Finance, insurance and other, net
31,260
26,991
15.8
25.8
Total
$
1,478,156
$
1,335,663
10.7
20.3
GROSS MARGIN %:
New vehicle retail sales
5.5
5.7
Used vehicle retail sales
4.9
5.1
Used vehicle wholesale sales
(0.9)
0.1
Total used
3.7
4.0
Parts and service
57.6
55.2
Finance, insurance and other, net
100.0
100.0
Total
11.2
11.1
GROSS PROFIT:
New vehicle retail sales
$
45,350
$
43,347
4.6
13.6
Used vehicle retail sales
19,579
17,329
13.0
23.3
Used vehicle wholesale sales
(851)
54
(1,675.9)
(5,004.1)
Total used
18,728
17,383
7.7
7.6
Parts and service
69,488
60,845
14.2
24.3
Finance, insurance and other, net
31,260
26,991
15.8
25.8
Total
$
164,826
$
148,566
10.9
20.7
UNITS SOLD:
Retail new vehicles sold
27,821
23,694
17.4
Retail used vehicles sold
18,435
14,401
28.0
Wholesale used vehicles sold
13,245
11,328
16.9
Total used
31,680
25,729
23.1
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
29,648
$
32,274
(8.1)
(0.3)
Used vehicle retail
$
21,798
$
23,596
(7.6)
0.6
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,630
$
1,829
(10.9)
(3.3)
Used vehicle retail sales
1,062
1,203
(11.7)
(3.7)
Used vehicle wholesale sales
(64)
5
(1,380.0)
(4,294.3)
Total used
591
676
(12.6)
(12.6)
Finance, insurance and other, net (per retail unit)
$
676
$
709
(4.7)
3.6
OTHER:
SG&A expenses
$
137,475
$
119,154
15.4
25.5
Adjusted SG&A expenses(1)
$
137,187
$
118,593
15.7
25.9
SG&A as % revenues
9.3
8.9
Adjusted SG&A as % revenues (1)
9.3
8.9
SG&A as % gross profit
83.4
80.2
Adjusted SG&A as % gross profit (1)
83.2
79.8
Operating margin %
1.5
1.8
Adjusted operating margin % (1)
1.5
1.9
Pretax margin %
1.1
1.3
Adjusted pretax margin % (1)
1.1
1.3
INTEREST EXPENSE:
Floorplan interest expense
$
(3,423)
$
(3,137)
9.1
18.5
Floorplan assistance
714
643
11.0
22.1
Net floorplan expense
$
(2,709)
$
(2,494)
8.6
17.6
Other interest expense, net
$
(2,386)
$
(3,966)
(39.8)
(34.7)
(1) See the section of this release entitled "Non-GAAP Financial Measures " and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.
Group 1 Automotive, Inc.
Additional Information - Brazil
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended September 30,
2017
2016
% Increase/
Constant Currency (1)
(Decrease)
% Increase/ (Decrease)
REVENUES:
New vehicle retail sales
$
79,202
$
77,388
2.3
(0.2)
Used vehicle retail sales
22,931
20,213
13.4
10.6
Used vehicle wholesale sales
2,817
811
247.3
239.0
Total used
25,748
21,024
22.5
19.4
Parts and service
12,495
12,359
1.1
(1.4)
Finance, insurance and other, net
2,162
1,707
26.7
23.5
Total
$ 119,607
$ 112,478
6.3
3.7
GROSS MARGIN %:
New vehicle retail sales
5.7
5.8
Used vehicle retail sales
7.4
7.5
Used vehicle wholesale sales
7.7
7.3
Total used
7.4
7.5
Parts and service
45.5
37.7
Finance, insurance and other, net
100.0
100.0
Total
11.9
11.1
GROSS PROFIT:
New vehicle retail sales
$
4,505
$
4,518
(0.3)
(2.7)
Used vehicle retail sales
1,690
1,510
11.9
9.2
Used vehicle wholesale sales
216
59
266.1
258.5
Total used
1,906
1,569
21.5
18.6
Parts and service
5,680
4,656
22.0
19.0
Finance, insurance and other, net
2,162
1,707
26.7
23.5
Total
$
14,253
$
12,450
14.5
11.7
UNITS SOLD:
Retail new vehicles sold
2,179
2,429
(10.3)
Retail used vehicles sold
1,034
1,011
2.3
Wholesale used vehicles sold
242
333
(27.3)
Total used
1,276
1,344
(5.1)
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
36,348
$
31,860
14.1
11.3
Used vehicle retail
$
22,177
$
19,993
10.9
8.2
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
2,067
$
1,860
11.1
8.5
Used vehicle retail sales
1,634
1,494
9.4
6.8
Used vehicle wholesale sales
893
177
404.5
393.3
Total used
1,494
1,167
28.0
24.9
Finance, insurance and other, net (per retail unit)
$
673
$
496
35.7
32.2
OTHER:
SG&A expenses
$
13,145
$
12,896
1.9
(0.6)
Adjusted SG&A expenses(1)
$
13,145
$
12,622
4.1
1.6
SG&A as % revenues
11.0
11.5
Adjusted SG&A as % revenues (1)
11.0
11.2
SG&A as % gross profit
92.2
103.6
Adjusted SG&A as % gross profit (1)
92.2
101.4
Operating margin %
0.6
(0.6)
Adjusted operating margin % (1)
0.6
(0.4)
Pretax margin %
0.5
(0.8)
Adjusted pretax margin % (1)
0.5
(0.5)
INTEREST EXPENSE:
Floorplan interest expense
$
(141)
$
(73)
93.2
90.9
Floorplan assistance
--
--
-
-
Net floorplan expense
$
(141)
$
(73)
93.2
90.9
Other interest expense, net
$
(26)
$
(85)
(69.4)
(68.7)
Nine Months Ended September 30,
2017
2016
% Increase/
Constant Currency (1)
(Decrease)
% Increase/ (Decrease)
REVENUES:
New vehicle retail sales
$ 213,108
$ 215,728
(1.2)
(11.0)
Used vehicle retail sales
67,892
57,174
18.7
6.3
Used vehicle wholesale sales
8,373
2,349
256.4
220.7
Total used
76,265
59,523
28.1
14.8
Parts and service
36,136
34,543
4.6
(5.9)
Finance, insurance and other, net
6,283
4,784
31.3
18.3
Total
$ 331,792
$ 314,578
5.5
(5.1)
GROSS MARGIN %:
New vehicle retail sales
5.8
5.7
Used vehicle retail sales
7.2
5.7
Used vehicle wholesale sales
8.0
5.4
Total used
7.3
5.7
Parts and service
45.0
37.1
Finance, insurance and other, net
100.0
100.0
Total
12.2
10.6
GROSS PROFIT:
New vehicle retail sales
$
12,289
$
12,289
0.0
(10.0)
Used vehicle retail sales
4,864
3,272
48.7
36.8
Used vehicle wholesale sales
669
127
426.8
378.4
Total used
5,533
3,399
62.8
49.6
Parts and service
16,267
12,817
26.9
14.0
Finance, insurance and other, net
6,283
4,784
31.3
18.3
Total
$
40,372
$
33,289
21.3
9.3
UNITS SOLD:
Retail new vehicles sold
6,133
7,636
(19.7)
Retail used vehicles sold
3,048
3,465
(12.0)
Wholesale used vehicles sold
858
855
0.4
Total used
3,906
4,320
(9.6)
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
34,748
$
28,251
23.0
10.9
Used vehicle retail
$
22,274
$
16,500
35.0
20.8
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
2,004
$
1,609
24.5
12.0
Used vehicle retail sales
1,596
944
69.1
55.5
Used vehicle wholesale sales
780
149
423.5
376.7
Total used
1,417
787
80.1
65.4
Finance, insurance and other, net (per retail unit)
$
684
$
431
58.7
43.1
OTHER:
SG&A expenses
$
37,295
$
34,808
7.1
(3.6)
Adjusted SG&A expenses(1)
$
37,295
$
34,162
9.2
(1.7)
SG&A as % revenues
11.2
11.1
Adjusted SG&A as % revenues (1)
11.2
10.9
SG&A as % gross profit
92.4
104.6
Adjusted SG&A as % gross profit (1)
92.4
102.6
Operating margin %
0.6
(0.9)
Adjusted operating margin % (1)
0.6
(0.5)
Pretax margin %
0.4
(1.0)
Adjusted pretax margin % (1)
0.4
(0.7)
INTEREST EXPENSE:
Floorplan interest expense
$
(282)
$
(172)
64.0
50.0
Floorplan assistance
--
--
-
-
Net floorplan expense
$
(282)
$
(172)
64.0
50.0
Other interest expense, net
$
(231)
$
(182)
26.9
8.7
(1) See the section of this release entitled "Non-GAAP Financial Measures " and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.
Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended September 30,
2017
2016
% Increase/
Constant Currency % (1)
(Decrease)
Increase/ (Decrease)
REVENUES:
New vehicle retail sales
$ 1,710,241
$ 1,587,952
7.7
7.5
Used vehicle retail sales
743,038
702,620
5.8
5.7
Used vehicle wholesale sales
104,827
104,218
0.6
0.6
Total used
847,865
806,838
5.1
5.1
Parts and service
343,193
319,676
7.4
7.3
Finance, insurance and other, net
110,993
108,710
2.1
2.0
Total
$ 3,012,292
$ 2,823,176
6.7
6.6
GROSS MARGIN %:
New vehicle retail sales
5.2
5.1
Used vehicle retail sales
6.3
6.5
Used vehicle wholesale sales
(0.2)
(1.8)
Total used
5.5
5.5
Parts and service
54.0
54.2
Finance, insurance and other, net
100.0
100.0
Total
14.3
14.4
GROSS PROFIT:
New vehicle retail sales
$
88,332
$
80,435
9.8
9.6
Used vehicle retail sales
47,123
45,968
2.5
2.5
Used vehicle wholesale sales
(185)
(1,859)
90.0
89.3
Total used
46,938
44,109
6.4
6.3
Parts and service
185,157
173,414
6.8
6.7
Finance, insurance and other, net
110,993
108,710
2.1
2.0
Total
$
431,420
$
406,668
6.1
6.0
UNITS SOLD:
Retail new vehicles sold
48,321
45,597
6.0
Retail used vehicles sold
34,349
33,012
4.1
Wholesale used vehicles sold
14,967
15,027
(0.4)
Total used
49,316
48,039
2.7
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
35,393
$
34,826
1.6
1.5
Used vehicle retail
$
21,632
$
21,284
1.6
1.6
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,828
$
1,764
3.6
3.4
Used vehicle retail sales
1,372
1,392
(1.4)
(1.5)
Used vehicle wholesale sales
(12)
(124)
90.3
89.2
Total used
952
918
3.7
3.6
Finance, insurance and other, net (per retail unit)
$
1,343
$
1,383
(2.9)
(3.0)
OTHER:
Adjusted Finance, insurance and other revenue, net(1) (2)
$
117,543
$
108,710
8.1
8.1
Adjusted Total revenue (1)
$ 3,018,842
$ 2,823,176
6.9
6.8
Adjusted Total gross profit (1)
$
437,970
$
406,668
7.7
7.6
Adjusted Total gross margin(1)
14.5
14.4
Adjusted Finance, insurance and other, net (per retail unit) (1)
$
1,422
$
1,383
2.8
2.8
SG&A expenses
$
328,327
$
299,006
9.8
9.7
Adjusted SG&A expenses (1)
$
318,660
$
299,458
6.4
6.4
SG&A as % revenues
10.9
10.6
Adjusted SG&A as % revenues (1)
10.6
10.6
SG&A as % gross profit
76.1
73.5
Adjusted SG&A as % gross profit (1)
72.8
73.6
Operating margin %
2.6
3.0
Adjusted operating margin % (1)
3.5
3.3
Pretax margin %
1.6
2.0
Adjusted pretax margin % (1)
2.4
2.3
INTEREST EXPENSE:
Floorplan interest expense
$
(13,491)
$
(11,135)
21.2
21.2
Floorplan assistance
13,561
12,979
4.5
4.5
Net floorplan income
$
70
$
1,844
(96.2)
(96.1)
Other interest expense, net
$
(17,874)
$
(17,094)
4.6
4.6
Three Months Ended September 30,
2017
2016
% Increase/
Constant Currency % (1)
(Decrease)
Increase/ (Decrease)
REVENUES:
New vehicle retail sales
$ 4,496,222
$ 4,538,562
(0.9)
0.2
Used vehicle retail sales
2,089,914
2,106,569
(0.8)
0.6
Used vehicle wholesale sales
308,361
302,089
2.1
4.8
Total used
2,398,275
2,408,658
(0.4)
1.1
Parts and service
994,522
950,341
4.6
5.4
Finance, insurance and other, net
314,297
316,419
(0.7)
(0.0)
Total
$ 8,203,316
$ 8,213,980
(0.1)
1.0
GROSS MARGIN %:
New vehicle retail sales
5.2
5.1
Used vehicle retail sales
6.6
6.8
Used vehicle wholesale sales
(0.1)
(0.2)
Total used
5.7
5.9
Parts and service
53.9
54.0
Finance, insurance and other, net
100.0
100.0
Total
14.9
14.7
GROSS PROFIT:
New vehicle retail sales
$
232,470
$
233,310
(0.4)
0.8
Used vehicle retail sales
137,041
143,433
(4.5)
(3.5)
Used vehicle wholesale sales
(352)
(462)
23.8
(381.7)
Total used
136,689
142,971
(4.4)
(4.7)
Parts and service
536,378
513,188
4.5
5.4
Finance, insurance and other, net
314,297
316,419
(0.7)
(0.0)
Total
$ 1,219,834
$ 1,205,888
1.2
2.0
UNITS SOLD:
Retail new vehicles sold
127,487
130,022
(1.9)
Retail used vehicles sold
97,918
98,754
(0.8)
Wholesale used vehicles sold
43,571
43,077
1.1
Total used
141,489
141,831
(0.2)
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
35,268
$
34,906
1.0
2.1
Used vehicle retail
$
21,344
$
21,331
0.1
1.4
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,823
$
1,794
1.6
2.8
Used vehicle retail sales
1,400
1,452
(3.6)
(2.7)
Used vehicle wholesale sales
(8)
(11)
27.3
(376.2)
Total used
966
1,008
(4.2)
(4.5)
Finance, insurance and other, net (per retail unit)
$
1,394
$
1,383
0.8
1.5
OTHER:
Adjusted Finance, insurance and other revenue, net(1) (2)
$
320,847
$
316,419
1.4
2.1
Adjusted Total revenue (1)
$ 8,209,866
$ 8,213,980
(0.1)
1.1
Adjusted Total gross profit (1)
$ 1,226,384
$ 1,205,888
1.7
2.4
Adjusted Total gross margin(1)
14.9
14.7
Adjusted Finance, insurance and other, net (per retail unit) (1)
$
1,423
$
1,383
2.9
3.6
SG&A expenses
$
916,674
$
891,692
2.8
3.7
Adjusted SG&A expenses (1)
$
907,909
$
886,439
2.4
3.4
SG&A as % revenues
11.2
10.9
Adjusted SG&A as % revenues (1)
11.1
10.8
SG&A as % gross profit
75.1
73.9
Adjusted SG&A as % gross profit (1)
74.0
73.5
Operating margin %
3.1
3.2
Adjusted operating margin % (1)
3.4
3.4
Pretax margin %
2.0
2.2
Adjusted pretax margin % (1)
2.3
2.4
INTEREST EXPENSE:
Floorplan interest expense
$
(38,659)
$
(33,737)
14.6
15.4
Floorplan assistance
35,745
36,818
(2.9)
(2.7)
Net floorplan income
$
(2,914)
$
3,081
(194.6)
(201.1)
Other interest expense, net
$
(52,188)
$
(50,729)
2.9
3.2
(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 September 30,
2017
2016
% Increase/
(Decrease)
REVENUES:
New vehicle retail sales
$ 1,283,050
$ 1,238,239
3.6
Used vehicle retail sales
557,657
568,306
(1.9)
Used vehicle wholesale sales
62,552
74,020
(15.5)
Total used
620,209
642,326
(3.4)
Parts and service
281,735
269,072
4.7
Finance, insurance and other, net
95,195
96,685
(1.5)
Total
$ 2,280,189
$ 2,246,322
1.5
GROSS MARGIN %:
New vehicle retail sales
5.1
4.9
Used vehicle retail sales
6.7
6.8
Used vehicle wholesale sales
(0.2)
(2.0)
Total used
6.0
5.8
Parts and service
53.8
54.7
Finance, insurance and other, net
100.0
100.0
Total
15.3
15.3
GROSS PROFIT:
New vehicle retail sales
$
65,712
$
61,270
7.2
Used vehicle retail sales
37,638
38,909
(3.3)
Used vehicle wholesale sales
(138)
(1,477)
90.7
Total used
37,500
37,432
0.2
Parts and service
151,481
147,215
2.9
Finance, insurance and other, net
95,195
96,685
(1.5)
Total
$
349,888
$
342,602
2.1
UNITS SOLD:
Retail new vehicles sold
34,917
34,080
2.5
Retail used vehicles sold
26,093
26,800
(2.6)
Wholesale used vehicles sold
9,672
10,832
(10.7)
Total used
35,765
37,632
(5.0)
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
36,746
$
36,333
1.1
Used vehicle retail
$
21,372
$
21,205
0.8
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,882
$
1,798
4.7
Used vehicle retail sales
1,442
1,452
(0.7)
Used vehicle wholesale sales
(14)
(136)
89.7
Total used
1,049
995
5.4
Finance, insurance and other, net (per retail unit)
$
1,560
$
1,588
(1.8)
OTHER:
Adjusted Finance, insurance and other revenue, net(2) (3)
$
101,745
$
96,685
5.2
Adjusted Total revenue (2)
$ 2,286,739
$ 2,246,322
1.8
Adjusted Total gross profit (2)
$
356,438
$
342,602
4.0
Adjusted Total gross margin (2)
15.6
15.3
Adjusted Finance, insurance and other, net (per retail unit) (2)
$
1,668
$
1,588
5.0
SG&A expenses
$
258,862
$
243,151
6.5
Adjusted SG&A expenses (2)
$
249,195
$
242,701
2.7
SG&A as % revenues
11.4
10.8
Adjusted SG&A as % revenues (2)
10.9
10.8
SG&A as % gross profit
74.0
71.0
Adjusted SG&A as % gross profit (2)
69.9
70.8
Operating margin %
3.0
3.5
Adjusted operating margin % (2)
4.2
4.0
Nine Months Ended September 30,
2017
2016
% Increase/
(Decrease)
REVENUES:
New vehicle retail sales
$ 3,441,300
$ 3,505,583
(1.8)
Used vehicle retail sales
1,614,613
1,684,837
(4.2)
Used vehicle wholesale sales
199,320
202,003
(1.3)
Total used
1,813,933
1,886,840
(3.9)
Parts and service
835,188
796,455
4.9
Finance, insurance and other, net
274,464
279,919
(1.9)
Total
$ 6,364,885
$ 6,468,797
(1.6)
GROSS MARGIN %:
New vehicle retail sales
5.1
5.0
Used vehicle retail sales
7.0
7.2
Used vehicle wholesale sales
(0.1)
(0.1)
Total used
6.2
6.4
Parts and service
53.8
54.5
Finance, insurance and other, net
100.0
100.0
Total
15.9
15.6
GROSS PROFIT:
New vehicle retail sales
$
173,908
$
175,554
(0.9)
Used vehicle retail sales
112,216
121,040
(7.3)
Used vehicle wholesale sales
(232)
(213)
(8.9)
Total used
111,984
120,827
(7.3)
Parts and service
449,262
433,879
3.5
Finance, insurance and other, net
274,464
279,919
(1.9)
Total
$ 1,009,618
$ 1,010,179
(0.1)
UNITS SOLD:
Retail new vehicles sold
93,090
96,676
(3.7)
Retail used vehicles sold
76,156
79,587
(4.3)
Wholesale used vehicles sold
29,315
30,271
(3.2)
Total used
105,471
109,858
(4.0)
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
36,967
$
36,261
1.9
Used vehicle retail
$
21,201
$
21,170
0.1
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,868
$
1,816
2.9
Used vehicle retail sales
1,474
1,521
(3.1)
Used vehicle wholesale sales
(8)
(7)
(14.3)
Total used
1,062
1,100
(3.5)
Finance, insurance and other, net (per retail unit)
$
1,622
$
1,588
2.1
OTHER:
Adjusted Finance, insurance and other revenue, net(2) (3)
$
281,014
$
279,919
0.4
Adjusted Total revenue (2)
$ 6,371,435
$ 6,468,797
(1.5)
Adjusted Total gross profit (2)
$ 1,016,168
$ 1,010,179
0.6
Adjusted Total gross margin (2)
15.9
15.6
Adjusted Finance, insurance and other, net (per retail unit) (2)
$
1,660
$
1,588
4.5
SG&A expenses
$
737,548
$
726,162
1.7
Adjusted SG&A expenses (2)
$
729,071
$
718,875
1.4
SG&A as % revenues
11.6
11.2
Adjusted SG&A as % revenues (2)
11.5
11.1
SG&A as % gross profit
73.1
71.8
Adjusted SG&A as % gross profit (2)
71.7
71.2
Operating margin %
3.6
3.7
Adjusted operating margin % (2)
4.0
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 profits are the same.
Group 1 Automotive, Inc.
Additional Information - Same Store U.K. (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended September 30,
2017
2016
% Increase/
Constant Currency (2)
(Decrease)
% Increase/ (Decrease)
REVENUES:
New vehicle retail sales
$
270,750
$
254,246
6.5
6.2
Used vehicle retail sales
120,723
104,692
15.3
15.6
Used vehicle wholesale sales
30,565
27,891
9.6
9.8
Total used
151,288
132,583
14.1
14.4
Parts and service
37,360
35,360
5.7
6.0
Finance, insurance and other, net
9,487
8,634
9.9
9.8
Total
$
468,885
$
430,823
8.8
8.8
GROSS MARGIN %:
New vehicle retail sales
5.2
5.5
Used vehicle retail sales
4.9
4.8
Used vehicle wholesale sales
(1.1)
(1.5)
Total used
3.7
3.5
Parts and service
58.1
55.7
Finance, insurance and other, net
100.0
100.0
Total
10.9
10.9
GROSS PROFIT:
New vehicle retail sales
$
14,065
$
13,919
1.0
0.5
Used vehicle retail sales
5,970
5,034
18.6
19.0
Used vehicle wholesale sales
(332)
(409)
18.8
17.3
Total used
5,638
4,625
21.9
22.2
Parts and service
21,710
19,683
10.3
10.6
Finance, insurance and other, net
9,487
8,634
9.9
9.8
Total
$
50,900
$
46,861
8.6
8.6
UNITS SOLD:
Retail new vehicles sold
8,573
8,331
2.9
Retail used vehicles sold
5,094
4,643
9.7
Wholesale used vehicles sold
3,795
3,563
6.5
Total used
8,889
8,206
8.3
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
31,582
$
30,518
3.5
3.2
Used vehicle retail
$
23,699
$
22,548
5.1
5.4
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,641
$
1,671
(1.8)
(2.3)
Used vehicle retail sales
1,172
1,084
8.1
8.5
Used vehicle wholesale sales
(87)
(115)
24.3
22.3
Total used
634
564
12.4
12.8
Finance, insurance and other, net (per retail unit)
$
694
$
665
4.4
4.2
OTHER:
SG&A expenses
$
41,538
$
38,836
7.0
7.2
SG&A as % revenues
8.9
9.0
SG&A as % gross profit
81.6
82.9
Operating margin %
1.6
1.5
Nine Months Ended September 30,
2017
2016
% Increase/
Constant Currency (2)
(Decrease)
% Increase/ (Decrease)
REVENUES:
New vehicle retail sales
$
719,059
$
746,389
(3.7)
4.6
Used vehicle retail sales
336,591
326,141
3.2
12.4
Used vehicle wholesale sales
84,564
89,360
(5.4)
3.1
Total used
421,155
415,501
1.4
10.4
Parts and service
101,479
105,032
(3.4)
5.1
Finance, insurance and other, net
26,498
26,338
0.6
9.4
Total
$ 1,268,191
$ 1,293,260
(1.9)
6.6
GROSS MARGIN %:
New vehicle retail sales
5.6
5.7
Used vehicle retail sales
5.1
5.2
Used vehicle wholesale sales
(0.6)
0.1
Total used
3.9
4.1
Parts and service
57.6
55.1
Finance, insurance and other, net
100.0
100.0
Total
11.2
11.1
GROSS PROFIT:
New vehicle retail sales
$
40,190
$
42,704
(5.9)
2.2
Used vehicle retail sales
17,047
16,926
0.7
10.1
Used vehicle wholesale sales
(494)
92
(637.0)
(1,035.6)
Total used
16,553
17,018
(2.7)
4.4
Parts and service
58,473
57,903
1.0
9.7
Finance, insurance and other, net
26,498
26,338
0.6
9.4
Total
$
141,714
$
143,963
(1.6)
7.1
UNITS SOLD:
Retail new vehicles sold
23,853
22,956
3.9
Retail used vehicles sold
15,015
13,718
9.5
Wholesale used vehicles sold
11,039
10,803
2.2
Total used
26,054
24,521
6.3
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
30,145
$
32,514
(7.3)
0.7
Used vehicle retail
$
22,417
$
23,775
(5.7)
2.7
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,685
$
1,860
(9.4)
(1.6)
Used vehicle retail sales
1,135
1,234
(8.0)
0.6
Used vehicle wholesale sales
(45)
9
(600.0)
(1,015.6)
Total used
635
694
(8.5)
(1.7)
Finance, insurance and other, net (per retail unit)
$
682
$
718
(5.0)
3.2
OTHER:
SG&A expenses
$
113,338
$
112,159
1.1
9.8
Adjusted SG&A expenses(2)
$
113,050
$
111,598
1.3
10.1
SG&A as % revenues
8.9
8.7
Adjusted SG&A as % revenues (2)
8.9
8.6
SG&A as % gross profit
80.0
77.9
Adjusted SG&A as % gross profit (2)
79.8
77.5
Operating margin %
1.9
2.1
Adjusted operating margin % (2)
1.9
2.1
(1) Same store amounts include the results for the identical months in each period presented in the comparison, commencing with the first full month we owned the dealership and, in the case of dispositions, ending with the last full month we owned it. Same store results also include the activities of our corporate office.
(2) See the section of this release entitled "Non-GAAP Financial Measures " and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.
Group 1 Automotive, Inc.
Additional Information - Same Store Brazil (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended September 30,
2017
2016
% Increase/
Constant Currency (2)
(Decrease)
% Increase/ (Decrease)
REVENUES:
New vehicle retail sales
$
78,689
$
72,086
9.2
6.5
Used vehicle retail sales
22,846
18,717
22.1
19.0
Used vehicle wholesale sales
2,818
811
247.5
239.0
Total used
25,664
19,528
31.4
28.1
Parts and service
12,445
11,138
11.7
9.0
Finance, insurance and other, net
2,157
1,595
35.2
31.9
Total
$ 118,955
$ 104,347
14.0
11.2
GROSS MARGIN %:
New vehicle retail sales
5.7
5.8
Used vehicle retail sales
7.4
7.7
Used vehicle wholesale sales
7.7
7.3
Total used
7.4
7.6
Parts and service
45.5
38.8
Finance, insurance and other, net
100.0
100.0
Total
11.9
11.1
GROSS PROFIT:
New vehicle retail sales
$
4,464
$
4,182
6.7
4.2
Used vehicle retail sales
1,689
1,433
17.9
14.9
Used vehicle wholesale sales
216
59
266.1
258.5
Total used
1,905
1,492
27.7
24.5
Parts and service
5,665
4,327
30.9
27.8
Finance, insurance and other, net
2,157
1,595
35.2
31.9
Total
$
14,191
$
11,596
22.4
19.4
UNITS SOLD:
Retail new vehicles sold
2,155
2,152
0.1
Retail used vehicles sold
1,028
922
11.5
Wholesale used vehicles sold
242
283
(14.5)
Total used
1,270
1,205
5.4
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
36,515
$
33,497
9.0
6.3
Used vehicle retail
$
22,224
$
20,300
9.5
6.7
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
2,071
$
1,943
6.6
4.0
Used vehicle retail sales
1,643
1,554
5.7
3.1
Used vehicle wholesale sales
893
208
329.3
319.2
Total used
1,500
1,238
21.2
18.2
Finance, insurance and other, net (per retail unit)
$
678
$
519
30.6
27.4
OTHER:
SG&A expenses
$
12,746
$
11,762
8.4
5.7
Adjusted SG&A expenses(2)
$
12,746
$
11,488
11.0
8.2
SG&A as % revenues
10.7
11.3
Adjusted SG&A as % revenues (2)
10.7
11.0
SG&A as % gross profit
89.8
101.4
Adjusted SG&A as % gross profit (2)
89.8
99.1
Operating margin %
0.9
(0.4)
Adjusted operating margin % (2)
0.9
(0.1)
Nine Months Ended September 30,
2017
2016
% Increase/
Constant Currency (2)
(Decrease)
% Increase/ (Decrease)
REVENUES:
New vehicle retail sales
$ 204,640
$ 200,165
2.2
(7.8)
Used vehicle retail sales
64,126
50,794
26.2
13.4
Used vehicle wholesale sales
8,247
1,871
340.8
301.7
Total used
72,373
52,665
37.4
23.6
Parts and service
34,294
29,006
18.2
6.9
Finance, insurance and other, net
5,913
4,178
41.5
28.1
Total
$ 317,220
$ 286,014
10.9
0.0
GROSS MARGIN %:
New vehicle retail sales
5.8
5.7
Used vehicle retail sales
7.3
5.9
Used vehicle wholesale sales
7.9
7.4
Total used
7.4
6.0
Parts and service
45.8
39.0
Finance, insurance and other, net
100.0
100.0
Total
12.2
10.5
GROSS PROFIT:
New vehicle retail sales
$
11,858
$
11,394
4.1
(6.2)
Used vehicle retail sales
4,708
3,018
56.0
43.8
Used vehicle wholesale sales
653
138
373.2
330.1
Total used
5,361
3,156
69.9
56.3
Parts and service
15,722
11,316
38.9
25.5
Finance, insurance and other, net
5,913
4,178
41.5
28.1
Total
$
38,854
$
30,044
29.3
17.0
UNITS SOLD:
Retail new vehicles sold
5,864
6,690
(12.3)
Retail used vehicles sold
2,925
2,901
0.8
Wholesale used vehicles sold
723
634
14.0
Total used
3,648
3,535
3.2
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
34,898
$
29,920
16.6
5.2
Used vehicle retail
$
21,923
$
17,509
25.2
12.4
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
2,022
$
1,703
18.7
7.0
Used vehicle retail sales
1,610
1,040
54.8
42.6
Used vehicle wholesale sales
903
218
314.2
277.1
Total used
1,470
893
64.6
51.5
Finance, insurance and other, net (per retail unit)
$
673
$
436
54.4
39.8
OTHER:
SG&A expenses
$
34,693
$
29,192
18.8
7.6
Adjusted SG&A expenses(2)
$
34,693
$
28,918
20.0
8.6
SG&A as % revenues
10.9
10.2
Adjusted SG&A as % revenues (2)
10.9
10.1
SG&A as % gross profit
89.3
97.2
Adjusted SG&A as % gross profit (2)
89.3
96.3
Operating margin %
1.0
0.0
Adjusted operating margin % (2)
1.0
0.1
(1) Same store amounts include the results for the identical months in each period presented in the comparison, commencing with the first full month we owned the dealership and, in the case of dispositions, ending with the last full month we owned it. Same store results also include the activities of our corporate office.
(2) See the section of this release entitled "Non-GAAP Financial Measures " and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.
Group 1 Automotive, Inc.
Additional Information - Same Store Consolidated (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended September 30,
2017
2016
% Increase/
Constant Currency (2)
(Decrease)
% Increase/ (Decrease)
REVENUES:
New vehicle retail sales
$ 1,632,489
$ 1,564,571
4.3
4.2
Used vehicle retail sales
701,226
691,715
1.4
1.3
Used vehicle wholesale sales
95,935
102,722
(6.6)
(6.6)
Total used
797,161
794,437
0.3
0.3
Parts and service
331,540
315,570
5.1
5.0
Finance, insurance and other, net
106,839
106,914
(0.1)
(0.1)
Total
$ 2,868,029
$ 2,781,492
3.1
3.0
GROSS MARGIN %:
New vehicle retail sales
5.2
5.1
Used vehicle retail sales
6.5
6.6
Used vehicle wholesale sales
(0.3)
(1.8)
Total used
5.7
5.5
Parts and service
53.9
54.3
Finance, insurance and other, net
100.0
100.0
Total
14.5
14.4
GROSS PROFIT:
New vehicle retail sales
$
84,241
$
79,371
6.1
5.9
Used vehicle retail sales
45,297
45,376
(0.2)
(0.2)
Used vehicle wholesale sales
(254)
(1,827)
86.1
85.5
Total used
45,043
43,549
3.4
3.4
Parts and service
178,856
171,225
4.5
4.4
Finance, insurance and other, net
106,839
106,914
(0.1)
(0.1)
Total
$
414,979
$
401,059
3.5
3.4
UNITS SOLD:
Retail new vehicles sold
45,645
44,563
2.4
Retail used vehicles sold
32,215
32,365
(0.5)
Wholesale used vehicles sold
13,709
14,678
(6.6)
Total used
45,924
47,043
(2.4)
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
35,765
$
35,109
1.9
1.7
Used vehicle retail
$
21,767
$
21,372
1.8
1.8
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,846
$
1,781
3.6
3.4
Used vehicle retail sales
1,406
1,402
0.3
0.2
Used vehicle wholesale sales
(19)
(124)
84.7
84.5
Total used
981
926
5.9
5.9
Finance, insurance and other, net (per retail unit)
$
1,372
$
1,390
(1.3)
(1.3)
OTHER:
Adjusted Finance, insurance and other revenue, net(2) (3)
$
113,389
$
106,914
6.1
6.0
Adjusted Total revenue (2)
$ 2,874,579
$ 2,781,492
3.3
3.2
Adjusted Total gross profit (2)
$
421,529
$
401,059
5.1
5.0
Adjusted Total gross margin (2)
14.7
14.4
Adjusted Finance, insurance and other, net (per retail unit) (2)
$
1,456
$
1,390
4.7
4.7
SG&A expenses
$
313,146
$
293,749
6.6
6.5
Adjusted SG&A expenses (2)
$
303,479
$
293,025
3.6
3.5
SG&A as % revenues
10.9
10.6
Adjusted SG&A as % revenues (2)
10.6
10.5
SG&A as % gross profit
75.5
73.2
Adjusted SG&A as % gross profit (2)
72.0
73.1
Operating margin %
2.7
3.0
Adjusted operating margin % (2)
3.6
3.4
Nine Months Ended September 30,
2017
2016
% Increase/
Constant Currency (2)
(Decrease)
% Increase/ (Decrease)
REVENUES:
New vehicle retail sales
$ 4,364,999
$ 4,452,137
(2.0)
(1.0)
Used vehicle retail sales
2,015,330
2,061,772
(2.3)
(1.1)
Used vehicle wholesale sales
292,131
293,234
(0.4)
2.0
Total used
2,307,461
2,355,006
(2.0)
(0.7)
Parts and service
970,961
930,493
4.3
5.0
Finance, insurance and other, net
306,875
310,435
(1.1)
(0.6)
Total
$ 7,950,296
$ 8,048,071
(1.2)
(0.2)
GROSS MARGIN %:
New vehicle retail sales
5.2
5.2
Used vehicle retail sales
6.6
6.8
Used vehicle wholesale sales
--
--
Total used
5.8
6.0
Parts and service
53.9
54.1
Finance, insurance and other, net
100.0
100.0
Total
15.0
14.7
GROSS PROFIT:
New vehicle retail sales
$
225,956
$
229,652
(1.6)
(0.6)
Used vehicle retail sales
133,971
140,984
(5.0)
(4.1)
Used vehicle wholesale sales
(73)
17
(529.4)
(3,053.6)
Total used
133,898
141,001
(5.0)
(4.5)
Parts and service
523,457
503,098
4.0
4.8
Finance, insurance and other, net
306,875
310,435
(1.1)
(0.6)
Total
$ 1,190,186
$ 1,184,186
0.5
1.2
UNITS SOLD:
Retail new vehicles sold
122,807
126,322
(2.8)
Retail used vehicles sold
94,096
96,206
(2.2)
Wholesale used vehicles sold
41,077
41,708
(1.5)
Total used
135,173
137,914
(2.0)
AVERAGE RETAIL SALES PRICE:
New vehicle retail
$
35,544
$
35,244
0.8
1.8
Used vehicle retail
$
21,418
$
21,431
(0.1)
1.1
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales
$
1,840
$
1,818
1.2
2.2
Used vehicle retail sales
1,424
1,465
(2.8)
(2.0)
Used vehicle wholesale sales
(2)
--
-
(3,099.0)
Total used
991
1,022
(3.0)
(2.5)
Finance, insurance and other, net (per retail unit)
$
1,415
$
1,395
1.4
2.0
OTHER:
Adjusted Finance, insurance and other revenue, net(2) (3)
$
313,425
$
310,435
1.0
1.5
Adjusted Total revenue (2)
$ 7,956,846
$ 8,048,071
(1.1)
(0.1)
Adjusted Total gross profit (2)
$ 1,196,736
$ 1,184,186
1.1
1.8
Adjusted Total gross margin (2)
15.0
14.7
Adjusted Finance, insurance and other, net (per retail unit) (2)
$
1,445
$
1,395
3.6
4.2
SG&A expenses
$
885,579
$
866,513
2.2
3.0
Adjusted SG&A expenses (2)
$
876,814
$
859,391
2.0
2.8
SG&A as % revenues
11.1
10.8
Adjusted SG&A as % revenues (2)
11.0
10.7
SG&A as % gross profit
74.4
73.2
Adjusted SG&A as % gross profit (2)
73.3
72.6
Operating margin %
3.2
3.3
Adjusted operating margin % (2)
3.5
3.6
(1) Same store amounts include the results for the identical months in each period presented in the comparison, commencing with the first full month we owned the dealership and, in the case of dispositions, ending with the last full month we owned it. Same store results also include the activities of our corporate office.
(2) See the section of this release entitled "Non-GAAP Financial Measures " and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.
(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 profits are the same.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - U.S.
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended September 30,
2017
2016
% Increase/
(Decrease)
FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:
As reported
$
96,383
$
98,295
(1.9)
Pre-tax adjustments:
Catastrophic events
6,550
-
Adjusted Finance, insurance and other revenue, net (1) $
102,933
$
98,295
4.7
TOTAL REVENUES RECONCILIATION:
As reported
$
2,301,959
$ 2,274,723
1.2
Pre-tax adjustments:
Catastrophic events
6,550
-
Adjusted Total Revenues (1)
$
2,308,509
$ 2,274,723
1.5
TOTAL GROSS PROFIT RECONCILIATION:
As reported
$
353,567
$
346,726
2.0
Pre-tax adjustments:
Catastrophic events
6,550
-
Adjusted Total Gross Profit (1)
$
360,117
$
346,726
3.9
SG&A RECONCILIATION:
As reported
$
261,787
$
246,501
6.2
Pre-tax adjustments:
Catastrophic events
(8,149)
(450)
Gain (loss) on real estate and dealership transactions (798)
1,176
Legal settlements
(720)
-
Adjusted SG&A (1)
$
252,120
$
247,227
2.0
TOTAL GROSS MARGIN %:
Unadjusted
15.4
15.2
Adjusted (1)
15.6
15.2
FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):
Unadjusted
$
1,566
$
1,588
(1.4)
Adjusted (1)
$
1,673
$
1,588
5.4
SG&A AS % REVENUES:
Unadjusted
11.4
10.8
Adjusted (1)
11.0
10.9
SG&A AS % GROSS PROFIT:
Unadjusted
74.0
71.1
Adjusted (1)
70.0
71.3
OPERATING MARGIN %:
Unadjusted
3.0
3.4
Adjusted (1), (2)
4.1
3.9
PRETAX MARGIN %:
Unadjusted
1.8
2.3
Adjusted (1), (2)
2.9
2.8
SAME STORE FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:
As reported
$
95,195
$
96,685
(1.5)
Pre-tax adjustments:
Catastrophic events
6,550
-
Adjusted Finance, insurance and other revenue, net (1) $
101,745
$
96,685
5.2
SAME STORE TOTAL REVENUES RECONCILIATION:
As reported
$
2,280,189
$ 2,246,322
1.5
Pre-tax adjustments:
Catastrophic events
6,550
-
Adjusted Total Revenues (1)
$
2,286,739
$ 2,246,322
1.8
SAME STORE TOTAL GROSS PROFIT RECONCILIATION:
As reported
$
349,888
$
342,602
2.1
Pre-tax adjustments:
Catastrophic events
6,550
-
Adjusted Total Gross Profit (1)
$
356,438
$
342,602
4.0
SAME STORE SG&A RECONCILIATION:
As reported
$
258,862
$
243,151
6.5
Pre-tax adjustments:
Catastrophic events
(8,149)
(450)
Loss on real estate and dealership transactions
(798)
-
Legal settlements
(720)
-
Adjusted Same Store SG&A (1)
$
249,195
$
242,701
2.7
SAME STORE TOTAL GROSS MARGIN %:
Unadjusted
15.3
15.3
Adjusted (1)
15.6
15.3
SAME STORE FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):
Unadjusted
$
1,560
$
1,588
(1.8)
Adjusted (1)
$
1,668
$
1,588
5.0
SAME STORE SG&A AS % REVENUES:
Unadjusted
11.4
10.8
Adjusted (1)
10.9
10.8
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted
74.0
71.0
Adjusted (1)
69.9
70.8
SAME STORE OPERATING MARGIN %
Unadjusted
3.0
3.5
Adjusted (1), (3)
4.2
4.0
Nine Months Ended September 30,
2017
2016
% Increase/
(Decrease)
FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:
As reported
$
276,754
$
284,644
(2.8)
Pre-tax adjustments:
Catastrophic events
6,550
-
Adjusted Finance, insurance and other revenue, net (1) $
283,304
$
284,644
(0.5)
TOTAL REVENUES RECONCILIATION:
As reported
$
6,393,368
$ 6,563,739
(2.6)
Pre-tax adjustments:
Catastrophic events
6,550
-
Adjusted Total Revenues (1)
$
6,399,918
$ 6,563,739
(2.5)
TOTAL GROSS PROFIT RECONCILIATION:
As reported
$
1,014,636
$ 1,024,033
(0.9)
Pre-tax adjustments:
Catastrophic events
6,550
-
Adjusted Total Gross Profit (1)
$
1,021,186
$ 1,024,033
(0.3)
SG&A RECONCILIATION:
As reported
$
741,904
$
737,730
0.6
Pre-tax adjustments:
Catastrophic events
(8,792)
(5,873)
Gain (loss) on real estate and dealership transactions (798)
1,856
Acquisition costs
-
(30)
Legal Settlements (4)
1,113
-
Adjusted SG&A (1)
$
733,427
$
733,683
(0.0)
TOTAL GROSS MARGIN %:
Unadjusted
15.9
15.6
Adjusted (1)
16.0
15.6
FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):
Unadjusted
$
1,628
$
1,585
2.7
Adjusted (1)
$
1,667
$
1,585
5.2
SG&A AS % REVENUES:
Unadjusted
11.6
11.2
Adjusted (1)
11.5
11.2
SG&A AS % OF GROSS PROFIT:
Unadjusted
73.1
72.0
Adjusted (1)
71.8
71.6
OPERATING MARGIN %:
Unadjusted
3.6
3.7
Adjusted (1), (2)
3.9
3.9
PRETAX MARGIN %:
Unadjusted
2.2
2.5
Adjusted (1), (2)
2.6
2.8
SAME STORE FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:
As reported
$
274,464
$
279,919
(1.9)
Pre-tax adjustments:
Catastrophic events
6,550
-
Adjusted Finance, insurance and other revenue, net (1) $
281,014
$
279,919
0.4
SAME STORE TOTAL REVENUES RECONCILIATION:
As reported
$
6,364,885
$ 6,468,797
(1.6)
Pre-tax adjustments:
Catastrophic events
6,550
-
Adjusted Total Revenues (1)
$
6,371,435
$ 6,468,797
(1.5)
SAME STORE TOTAL GROSS PROFIT RECONCILIATION:
As reported
$
1,009,618
$ 1,010,179
(0.1)
Pre-tax adjustments:
Catastrophic events
6,550
-
Adjusted Total Gross Profit (1)
$
1,016,168
$ 1,010,179
0.6
SAME STORE SG&A RECONCILIATION:
As reported
$
737,548
$
725,162
1.7
Pre-tax adjustments:
Catastrophic events
(8,792)
(5,873)
Loss on real estate and dealership transactions
(798)
(384)
Acquisition costs
-
(30)
Legal Settlements (4)
1,113
-
Adjusted Same Store SG&A(1)
$
729,071
$
718,875
1.4
SAME STORE TOTAL GROSS MARGIN %:
Unadjusted
15.9
15.6
Adjusted (1)
15.9
15.6
SAME STORE FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):
Unadjusted
$
1,622
$
1,588
2.1
Adjusted (1)
$
1,660
$
1,588
4.5
SAME STORE SG&A AS % REVENUES:
Unadjusted
11.6
11.2
Adjusted (1)
11.5
11.1
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted
73.1
71.8
Adjusted (1)
71.7
71.2
SAME STORE OPERATING MARGIN %
Unadjusted
3.6
3.7
Adjusted (1), (3)
4.0
4.0
(1) See the section of this release entitled "Non-GAAP Financial Measures " for information regarding non-GAAP financial measures and certain selected items that the Company believes impact comparability of financial results between reporting periods.
(2) Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $9,526 for the three and nine months ended September 30, 2017, respectively, and $10,855 and $12,389 for the three and nine months ended September 30, 2016, respectively.
(3) Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $9,526 for the three and nine months ended September 30, 2017, respectively, and $10,793 and $12,327 for the three and nine months ended September 30, 2016, respectively.
(4) For the nine months ended September 30, 2017, the Company recognized a net pre-tax gain related to a settlement with an OEM of $1.8 million.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - U.K.
(Unaudited)
(Dollars in thousands, except per share amounts)
Nine Months Ended September 30,
2017
2016
% Increase/
(Decrease)
SG&A RECONCILIATION:
As reported
$ 137,475
$ 119,154
15.4
Pre-tax adjustments:
Acquisition costs
(288)
(561)
Adjusted SG&A (1)
$ 137,187
$ 118,593
15.7
SG&A AS % REVENUES:
Unadjusted
9.3
8.9
Adjusted (1)
9.3
8.9
SG&A AS % OF GROSS PROFIT:
Unadjusted
83.4
80.2
Adjusted (1)
83.2
79.8
OPERATING MARGIN %:
Unadjusted
1.5
1.8
Adjusted (1)
1.5
1.9
PRETAX MARGIN %:
Unadjusted
1.1
1.3
Adjusted (1),
1.1
1.3
SAME STORE SG&A RECONCILIATION:
As reported
$ 113,338
$ 112,159
1.1
Pre-tax adjustments:
Acquisition costs
(288)
(561)
Adjusted Same Store SG&A (1) $ 113,050
$ 111,598
1.3
SAME STORE SG&A AS % REVENUES:
Unadjusted
8.9
8.7
Adjusted (1)
8.9
8.6
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted
80.0
77.9
Adjusted (1)
79.8
77.5
SAME STORE OPERATING MARGIN %
Unadjusted
1.9
2.1
Adjusted (1)
1.9
2.1
(1) See the section of this release entitled "Non-GAAP Financial Measures " for information regarding non-GAAP financial measures and certain selected items that the Company believes impact comparability of financial results between reporting periods.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - Brazil
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended September 30,
2017
2016
% Increase/
(Decrease)
SG&A RECONCILIATION:
As reported
$ 13,145
$ 12,896
1.9
Pre-tax adjustments:
Foreign transaction tax
-
(274)
Adjusted SG&A (1)
$ 13,145
$ 12,622
4.1
SG&A AS % REVENUES:
Unadjusted
11.0
11.5
Adjusted (1)
11.0
11.2
SG&A AS % GROSS PROFIT:
Unadjusted
92.2
103.6
Adjusted (1)
92.2
101.4
OPERATING MARGIN %
Unadjusted
0.6
(0.6)
Adjusted (1),
0.6
(0.4)
PRETAX MARGIN %:
Unadjusted
0.5
(0.8)
Adjusted (1)
0.5
(0.5)
SAME STORE SG&A RECONCILIATION:
As reported
$ 12,746
$ 11,762
8.4
Pre-tax adjustments:
Foreign transaction tax
-
(274)
Adjusted Same Store SG&A (1)
$ 12,746
$ 11,488
11.0
SAME STORE SG&A AS % REVENUES:
Unadjusted
10.7
11.3
Adjusted (1)
10.7
11.0
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted
89.8
101.4
Adjusted (1)
89.8
99.1
SAME STORE OPERATING MARGIN %
Unadjusted
0.9
(0.4)
Adjusted (1)
0.9
(0.1)
Nine Months Ended September 30,
2017
2016
% Increase/
(Decrease)
SG&A RECONCILIATION:
As reported
$ 37,295
$ 34,808
7.1
Pre-tax adjustments:
Gain (loss) on real estate and dealership transactions -
(372)
Foreign transaction tax
-
(274)
Adjusted SG&A (1)
$ 37,295
$ 34,162
9.2
SG&A AS % REVENUES:
Unadjusted
11.2
11.1
Adjusted (1)
11.2
10.9
SG&A AS % OF GROSS PROFIT:
Unadjusted
92.4
104.6
Adjusted (1)
92.4
102.6
OPERATING MARGIN %:
Unadjusted
0.6
(0.9)
Adjusted (1), (2)
0.6
(0.5)
PRETAX MARGIN %:
Unadjusted
0.4
(1.0)
Adjusted (1), (2)
0.4
(0.7)
SAME STORE SG&A RECONCILIATION:
As reported
$ 34,693
$ 29,192
18.8
Pre-tax adjustments:
Foreign transaction tax
-
(274)
Adjusted Same Store SG&A (1)
$ 34,693
$ 28,918
20.0
SAME STORE SG&A AS % REVENUES:
Unadjusted
10.9
10.2
Adjusted (1)
10.9
10.1
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted
89.3
97.2
Adjusted (1)
89.3
96.3
SAME STORE OPERATING MARGIN %
Unadjusted
1.0
0.0
Adjusted (1)
1.0
0.1
(1) See the section of this release entitled "Non-GAAP Financial Measures " for information regarding non-GAAP financial measures and certain selected items that the Company believes impact comparability of financial results between reporting periods.
(2) Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $423 for the nine months ended September 30, 2016.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - CONSOLIDATED
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended September 30,
2017
2016
% Increase/
(Decrease)
NET INCOME RECONCILIATION:
As reported
$
29,881
$
35,366
(15.5)
Pre-tax adjustments:
Catastrophic events
Pre-tax
14,699
450
Tax impact
(5,677)
(169)
(Gain) loss on real estate and dealership transactions
Pre-tax
798
(1,114)
Tax impact
(301)
418
Legal settlements
Pre-tax
720
-
Tax impact
(270)
-
Foreign transaction tax
Pre-tax
-
274
Tax impact
-
-
Non-cash asset impairment
Pre-tax
9,526
10,793
Tax impact
(3,579)
(4,047)
Allowance for uncertain tax positions
Pre-tax
-
-
Tax impact
834
-
Adjusted net income (1)
$
46,631
$
41,971
11.1
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED
COMMON SHARES RECONCILIATION:
Adjusted net income (1)
$
46,631
$
41,971
11.1
Less: Adjusted earnings allocated to participating securities 1,603
1,695
(5.4)
Adjusted net income available to diluted common shares (1)
$
45,028
$
40,276
11.8
DILUTED INCOME PER COMMON SHARE RECONCILIATION:
As reported
$
1.43
$
1.65
(13.3)
After-tax adjustments:
Catastrophic events
0.44
0.01
(Gain) loss on real estate and dealership transactions
0.02
(0.03)
Legal settlements
0.02
-
Foreign transaction tax
-
0.01
Non-cash asset impairment
0.28
0.32
Allowance for uncertain tax positions
0.04
-
Adjusted diluted income per share (1)
$
2.23
$
1.96
13.8
FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:
As reported
$
110,993
$
108,710
2.1
Pre-tax adjustments:
Catastrophic events
6,550
-
Adjusted Finance, insurance and other revenue, net (1)
$
117,543
$
108,710
8.1
TOTAL REVENUES RECONCILIATION:
As reported
$
3,012,292
$
2,823,176
6.7
Pre-tax adjustments:
Catastrophic events
6,550
-
Adjusted Total Revenues (1)
$
3,018,842
$
2,823,176
6.9
TOTAL GROSS PROFIT RECONCILIATION:
As reported
$
431,420
$
406,668
6.1
Pre-tax adjustments:
Catastrophic events
6,550
-
Adjusted Total Gross Profit (1)
$
437,970
$
406,668
7.7
SG&A RECONCILIATION:
As reported
$
328,327
$
299,006
9.8
Pre-tax adjustments:
Catastrophic events
(8,149)
(450)
Gain (loss) on real estate and dealership transactions
(798)
1,176
Legal settlements
(720)
-
Foreign transaction tax
-
(274)
Adjusted SG&A(1)
$
318,660
$
299,458
6.4
TOTAL GROSS MARGIN %:
Unadjusted
14.3
14.4
Adjusted (1)
14.5
14.4
FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):
Unadjusted
$
1,343
$
1,383
(2.9)
Adjusted (1)
$
1,422
$
1,383
2.8
SG&A AS % REVENUES:
Unadjusted
10.9
10.6
Adjusted (1)
10.6
10.6
SG&A AS % GROSS PROFIT:
Unadjusted
76.1
73.5
Adjusted (1)
72.8
73.6
OPERATING MARGIN %
Unadjusted
2.6
3.0
Adjusted (1), (2)
3.5
3.3
PRETAX MARGIN %:
Unadjusted
1.6
2.0
Adjusted (1), (2)
2.4
2.3
SAME STORE FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:
As reported
$
106,839
$
106,914
(0.1)
Pre-tax adjustments:
Catastrophic events
6,550
-
Adjusted Finance, insurance and other revenue, net (1)
$
113,389
$
106,914
6.1
SAME STORE TOTAL REVENUES RECONCILIATION:
As reported
$
2,868,029
$
2,781,492
3.1
Pre-tax adjustments:
Catastrophic events
6,550
-
Adjusted Total Revenues (1)
$
2,874,579
$
2,781,492
3.3
SAME STORE TOTAL GROSS PROFIT RECONCILIATION:
As reported
$
414,979
$
401,059
3.5
Pre-tax adjustments:
Catastrophic events
6,550
-
Adjusted Total Gross Profit (1)
$
421,529
$
401,059
5.1
SAME STORE SG&A RECONCILIATION:
As reported
$
313,146
$
293,749
6.6
Pre-tax adjustments:
Catastrophic events
(8,149)
(450)
Loss on real estate and dealership transactions
(798)
-
Legal settlements
(720)
-
Foreign transaction tax
-
(274)
Adjusted Same Store SG&A (1)
$
303,479
$
293,025
3.6
SAME STORE TOTAL GROSS MARGIN %:
Unadjusted
14.5
14.4
Adjusted (1)
14.7
14.4
SAME STORE FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):
Unadjusted
$
1,372
$
1,390
(1.3)
Adjusted (1)
$
1,456
$
1,390
4.7
SAME STORE SG&A AS % REVENUES:
Unadjusted
10.9
10.6
Adjusted (1)
10.6
10.5
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted
75.5
73.2
Adjusted (1)
72.0
73.1
SAME STORE OPERATING MARGIN %
Unadjusted
2.7
3.0
Adjusted (1), (3)
3.6
3.4
Nine Months Ended September 30,
2017
2016
% Increase/
(Decrease)
NET INCOME RECONCILIATION:
As reported
$
102,953
$
116,237
(11.4)
Adjustments:
Catastrophic events
Pre-tax
15,341
5,873
Tax impact
(5,926)
(2,207)
(Gain) loss on real estate and dealership transactions
Pre-tax
798
(1,000)
Tax impact
(301)
672
Acquisition costs
-
-
Pre-tax
288
591
Tax impact
-
(11)
Legal Settlements (4)
-
-
Pre-tax
(1,113)
-
Tax impact
426
-
Foreign transaction tax
-
-
Pre-tax
-
274
Tax impact
-
-
Non-cash asset impairment
-
-
Pre-tax
9,526
12,327
Tax impact
(3,579)
(4,634)
Allowance for uncertain tax positions
-
-
Pre-tax
-
-
Tax impact
834
-
Foreign deferred income tax benefit
-
-
Pre-tax
-
-
Tax impact
-
(1,686)
Adjusted net income (1)
$
119,247
$
126,436
(5.7)
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED
COMMON SHARES RECONCILIATION:
Adjusted net income (1)
$
119,247
$
126,436
(5.7)
Less: Adjusted earnings allocated to participating securities 4,248
5,061
(16.1)
Adjusted net income available to diluted common shares (1)
$
114,999
$
121,375
(5.3)
DILUTED INCOME PER COMMON SHARE RECONCILIATION:
As reported
$
4.85
$
5.22
(7.1)
After-tax adjustments:
-
-
Catastrophic events
0.44
0.16
(Gain) loss on real estate and dealership transactions
0.03
(0.01)
Acquisition costs including related tax impact
0.02
0.02
Legal settlements
(0.03)
-
Foreign transaction tax
-
0.01
Non-cash asset impairment
0.27
0.35
Allowance for uncertain tax positions
0.04
-
Foreign deferred income tax benefit
-
(0.07)
Adjusted diluted income per share (1)
$
5.62
$
5.68
(1.1)
FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:
As reported
$
314,297
$
316,419
(0.7)
Pre-tax adjustments:
Catastrophic events
6,550
-
Adjusted Finance, insurance and other revenue, net (1)
$
320,487
$
316,419
1.4
TOTAL REVENUES RECONCILIATION:
As reported
$
8,203,316
$
8,213,980
(0.1)
Pre-tax adjustments:
Catastrophic events
6,550
-
Adjusted Total Revenues (1)
$
8,209,866
$
8,213,980
(0.1)
TOTAL GROSS PROFIT RECONCILIATION:
As reported
$
1,219,834
$
1,205,888
1.2
Pre-tax adjustments:
Catastrophic events
6,550
-
Adjusted Total Gross Profit (1)
$
1,226,384
$
1,205,888
1.7
SG&A RECONCILIATION:
As reported
$
916,674
$
891,692
2.8
Pre-tax adjustments:
Catastrophic events
(8,792)
(5,873)
Gain (loss) on real estate and dealership transactions
(798)
1,485
Acquisition costs
(288)
(591)
Legal settlements
1,113
-
Foreign transaction tax
-
(274)
Adjusted SG&A (1)
$
907,909
$
886,439
2.4
TOTAL GROSS MARGIN %:
Unadjusted
14.9
14.7
Adjusted (1)
14.9
14.7
FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):
Unadjusted
$
1,394
$
1,383
0.8
Adjusted (1)
$
1,423
$
1,383
2.9
SG&A AS % REVENUES:
Unadjusted
11.2
10.9
Adjusted (1)
11.1
10.8
SG&A AS % OF GROSS PROFIT:
Unadjusted
75.1
73.9
Adjusted (1)
74.0
73.5
OPERATING MARGIN %:
Unadjusted
3.1
3.2
Adjusted (1), (2)
3.4
3.4
PRETAX MARGIN %:
Unadjusted
2.0
2.2
Adjusted (1), (2)
2.3
2.4
SAME STORE FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:
As reported
$
306,875
$
310,435
(1.1)
Pre-tax adjustments:
Catastrophic events
6,550
-
Adjusted Finance, insurance and other revenue, net (1)
$
313,425
$
310,435
1.0
SAME STORE TOTAL REVENUES RECONCILIATION:
As reported
$
7,950,296
$
8,048,071
(1.2)
Pre-tax adjustments:
Catastrophic events
6,550
-
Adjusted Total Revenues (1)
$
7,956,846
$
8,048,071
(1.1)
SAME STORE TOTAL GROSS PROFIT RECONCILIATION:
As reported
$
1,190,186
$
1,184,186
0.5
Pre-tax adjustments:
Catastrophic events
6,550
-
Adjusted Total Gross Profit (1)
$
1,196,736
$
1,184,186
1.1
SAME STORE SG&A RECONCILIATION:
As reported
$
885,579
$
866,513
2.2
Pre-tax adjustments:
Catastrophic events
(8,792)
(5,873)
Loss on real estate and dealership transactions
(798)
(384)
Acquisition costs
(288)
(591)
Legal settlements
1,113
-
Foreign transaction tax
-
(274)
Adjusted Same Store SG&A (1)
$
876,814
$
859,391
2.0
SAME STORE TOTAL GROSS MARGIN %:
Unadjusted
15.0
14.7
Adjusted (1)
15.0
14.7
SAME STORE FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):
Unadjusted
$
1,415
$
1,395
1.4
Adjusted (1)
$
1,445
$
1,395
3.6
SAME STORE SG&A AS % REVENUES:
Unadjusted
11.1
10.8
Adjusted (1)
11.0
10.7
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted
74.4
73.2
Adjusted (1)
73.3
72.6
SAME STORE OPERATING MARGIN %
Unadjusted
3.2
3.3
Adjusted (1), (3)
3.5
3.6
(1) See the section of this release entitled "Non-GAAP Financial Measures " for information regarding non-GAAP financial measures and certain selected items that the Company believes impact comparability of financial results between reporting periods.
(2) Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $9,526 for the three and nine months ended September 30, 2017, respectively, and $10,855 and $12,812 for the three and nine months ended September 30, 2016, respectively.
(3) Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $9,526 for the three and nine months ended September 30, 2017, respectively, and $10,794 and $12,327 for the three and nine months ended September 30, 2016, respectively.
(4) For the nine months ended September 30, 2017, the Company recognized a net pre-tax gain related to a settlement with an OEM of $1.8 million.

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SOURCE Group 1 Automotive, Inc.

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