• Acura
  • BMW
  • Buick
  • CADILLAC
  • Audi
  • Chevrolet
  • Chrysler
  • Dodge
  • FIAT
  • Ford
  • GMC
  • Honda
  • Hyundai
  • Jeep
  • Kia
  • Lexus
  • Lincoln
  • MINI
  • Mercedes-Benz
  • Nissan
  • Porsche
  • Ram
  • Preowned
  • Scion
  • Smart
  • Subaru
  • Toyota
  • Volkswagen
  • Volvo

Group 1 Automotive

800 Gessner
Houston, TX 77024

  • Sales: (713) 647-5700
Investor Relations

Group 1 Automotive Reports Record Adjusted 2016 First Quarter Earnings

Earnings Increase Driven by Strong Used Vehicle and Service Sales Growth

HOUSTON, April 27, 2016 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), an international, Fortune 500 automotive retailer, today reported record 2016 first quarter adjusted net income of $37.1 million, a 3.5 percent increase, and record first quarter adjusted diluted earnings per common share of $1.59, an 8.2 percent increase, on a year-over-year comparable basis for the period ended March 31, 2016.

Adjusted net income and diluted earnings per share primarily exclude $1.7 million of net after-tax adjustments for insurance deductibles associated with vehicle damage from hailstorms in the U.S., and approximately $800 thousand related to the decision to divest four stores in Brazil. On a GAAP basis, reported net income for the quarter was $34.3 million and diluted earnings per common share were $1.47. Reconciliations of non-GAAP financial measures are included in the attached financial tables.

"We are pleased with this quarter's consolidated top-line revenue growth of 9.7 percent on a local currency basis, which was driven by strong performance from our U.K. team and impressive used vehicle and service growth in our U.S. operations," said Earl J. Hesterberg, Group 1's president and chief executive officer. "The revenue growth, coupled with stability in U.S. vehicle margins allowed us to grow adjusted net income and earnings for the quarter. Additionally, given the tremendous value we saw in our recent stock price, we executed an aggressive share repurchase program, buying approximately 1.5 million shares since the end of last year."

Mr. Hesterberg also commented, "The Brazilian auto market dropped another 28 percent in Q1 due to massive political turmoil, yet our Brazilian operations held Same Store revenue flat on a local currency basis—an amazing performance. Additionally, we implemented a significant set of portfolio enhancement actions this quarter, which include the divesture of four underperforming stores and the addition of four growth franchises. These actions should largely conclude our store restructuring program and better position us to maintain profitability in Brazil this year."

Consolidated Results for First Quarter 2016 (year-over-year comparable basis)

We have included constant exchange rate growth metrics both below (shown in parenthesis) and in the financial tables that follow for ease of comparison:

  • Total revenue increased 7.2 percent (9.7 percent on a constant exchange basis) to a first-quarter record of $2.6 billion; total gross profit grew 6.9 percent (8.6 percent) to $389.1 million.
  • New vehicle revenues increased 5.8 percent (8.5 percent) on 3.9 percent higher unit sales. New vehicle gross profit increased 2.9 percent (5.9 percent) to $71.7 million.
  • Retail used vehicle revenues increased 10.4 percent (12.6 percent) on 9.4 percent higher unit sales. Retail used vehicle gross profit improved 6.7 percent (7.8 percent) to $49.2 million as lower margins, down $38 per unit, partially offset the quarter's revenue growth.
  • Parts and service gross profit increased 10.5 percent (12.2 percent) on revenue growth of 9.4 percent (11.4 percent). Same Store parts and service gross profit increased 6.5 percent (8.0 percent) on revenue growth of 5.4 percent (7.3 percent).
  • Same Store Finance and Insurance (F&I) gross profit per retail unit (PRU) increased 0.7 percent (1.6 percent) to $1,385 per retail unit. U.S. F&I gross profit per unit increased $26 to a best ever record of $1,564.
  • Adjusted Selling, General and Administrative (SG&A) expenses as a percent of gross profit increased 20 basis points to 74.8 percent.

 

Segment Results for First Quarter 2016 (year-over-year comparable basis)

  • United States:
    The Company's U.S. revenues were $2.1 billion, an increase of 4.2 percent. The revenue growth reflects a 6.7 percent increase in retail used vehicles unit sales, as well as increases of 8.4 percent in parts and service revenue and 3.6 percent in finance and insurance revenue. This sales performance delivered gross profit growth of 5.8 percent, reflecting an 80 basis point improvement in parts and service gross margin, as well as the aforementioned growth in F&I PRU. Adjusted SG&A expenses as a percent of gross profit increased 30 basis points to 73.4 percent and adjusted operating margin was flat at 3.7 percent. The Company's U.S. operations accounted for 79.8 percent of total revenues and 85.5 percent of total gross profit.
  • United Kingdom:
    The Company's U.K. operations accounted for 16.6 percent of total revenues and 12.0 percent of total gross profit. Total revenue increased 44.2 percent (52.4 percent) to $431.9 million, and gross profit increased 36.9 percent (44.6 percent). Revenue growth was primarily driven by 63.2 and 26.1 percent increases in new and used vehicle retail unit sales, respectively. On a Same Store basis, adjusted SG&A expenses as a percent of gross profit improved 370 basis points to 74.6 percent.
  • Brazil:
    The Company's Brazilian operations accounted for 3.6 percent of total revenues and 2.5 percent of total gross profit. Brazil's new vehicle industry volumes declined roughly 28 percent due to continued weakness in the local economy, while the Company's Same Store new vehicle revenue was only down 6.2 percent on a constant exchange basis. Total Same Store revenue was only down 0.4 percent on a local currency basis as strong growth in used retail and parts and service mostly offset the decline in new vehicle sales.

 

Corporate Development

As previously announced, the Company acquired 15 franchises in the U.K. during February 2016. In April 2016, the Company acquired 2 franchises in Brazil, which include BMW and Toyota, and also began operations at the Land Rover and Jaguar open point that had been awarded last year. These acquisitions are expected to generate $595 million in estimated annual revenues.

As previously announced, the Company has disposed of a Volkswagen franchise and Toyota franchise in the U.S. Year to date, the Company has also disposed of 3 stores in Brazil, which include two Nissan franchises and a Peugeot franchise, with plans to dispose of another Peugeot store later this year. These franchises represented approximately $110 million of annual revenues.

Share Repurchase Authorization

During the first quarter of 2016, the Company repurchased 576,230 shares at an average price of $55.44 for a total of $31.9 million. Thus far in April 2016, the Company has repurchased an additional 911,207 shares at an average price of $54.87 for a total of $50.0 million. As of April 27, 2016, $68.1 million remains available under the Company's prior common stock share repurchase authorization. Purchases may be made from time to time in the open market or in privately negotiated transactions, based on market conditions, legal requirements and other corporate considerations and subject to Board approval and covenant restrictions.

First Quarter Earnings Conference Call Details

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

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

6811652

A telephonic replay will be available following the call through May 4, 2016 by dialing:

Domestic:

1-877-344-7529

International:

1-412-317-0088

Replay ID: 

10083995

ABOUT GROUP 1 AUTOMOTIVE, INC.

Group 1 owns and operates 162 automotive dealerships, 213 franchises, and 37 collision centersin the United States, the United Kingdom and Brazil that offer 34 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

This press release and the attached financial tables contain certain non-GAAP financial measures as defined under SEC rules, such as adjusted net income and adjusted earnings per share from continuing operations, which exclude certain items disclosed in the attached financial tables. As required by SEC rules, the Company provides reconciliations of these measures to the most directly comparable GAAP measures. The Company believes that these non-GAAP financial measures improve the transparency of the Company's disclosure, provide a meaningful presentation of the Company's results from its core business operations excluding the impact of items not related to the Company's ongoing core business operations, and improve the period-to-period comparability of the Company's results from its core business operations.

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

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

 

Group 1 Automotive, Inc.

Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)

           
 

 Three Months Ended March 31, 

 

2016

 

2015

 

% Increase/
(Decrease)

REVENUES:

         

New vehicle retail sales

$   1,409,851

 

$   1,332,724

 

5.8

Used vehicle retail sales

688,171

 

623,193

 

10.4

Used vehicle wholesale sales

101,592

 

100,192

 

1.4

Parts and service

308,592

 

282,189

 

9.4

Finance and insurance

100,149

 

94,556

 

5.9

Total revenues

2,608,355

 

2,432,854

 

7.2

           

COST OF SALES:

         

New vehicle retail sales

1,338,124

 

1,262,993

 

5.9

Used vehicle retail sales

638,971

 

577,072

 

10.7

Used vehicle wholesale sales

100,143

 

97,513

 

2.7

Parts and service

142,016

 

131,392

 

8.1

Total cost of sales

2,219,254

 

2,068,970

 

7.3

           

GROSS PROFIT

389,101

 

363,884

 

6.9

           

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

293,664

 

271,469

 

8.2

           

DEPRECIATION AND AMORTIZATION EXPENSE

12,464

 

11,684

 

6.7

           

ASSET IMPAIRMENTS

932

 

 

100.0

           

OPERATING INCOME

82,041

 

80,731

 

1.6

           

OTHER EXPENSE:

         

Floorplan interest expense

(11,010)

 

(9,348)

 

17.8

Other interest expense, net

(16,929)

 

(13,911)

 

21.7

INCOME BEFORE INCOME TAXES

54,102

 

57,472

 

(5.9)

           

PROVISION FOR INCOME TAXES

(19,811)

 

(21,657)

 

(8.5)

           

NET INCOME

$        34,291

 

$        35,815

 

(4.3)

Less: Earnings allocated to participating securities

$          1,348

 

$          1,388

 

(2.9)

Earnings available to diluted common shares

$        32,943

 

$        34,427

 

(4.3)

DILUTED EARNINGS PER SHARE

$            1.47

 

$            1.47

 

Weighted average dilutive common shares outstanding

22,453

 

23,446

 

(4.2)

Weighted average participating securities

921

 

932

 

(1.2)

Total weighted average shares outstanding

23,374

 

24,378

 

(4.1)

 

Group 1 Automotive, Inc.

Consolidated Balance Sheets

(Unaudited)

(Dollars in thousands)

             
   

March 31,
2016

 

December 31,
2015

 

% Increase/
(Decrease)

 ASSETS: 

           

 CURRENT ASSETS: 

           

 Cash and cash equivalents 

 

$      22,381

 

$          13,037

 

71.7

 Contracts in transit and vehicle receivables, net 

 

209,542

 

252,438

 

(17.0)

 Accounts and notes receivable, net 

 

154,162

 

157,768

 

(2.3)

 Inventories, net 

 

1,826,531

 

1,737,751

 

5.1

 Prepaid expenses and other current assets 

 

41,463

 

27,376

 

51.5

 Total current assets 

 

2,254,079

 

2,188,370

 

3.0

 PROPERTY AND EQUIPMENT, net 

 

1,063,852

 

1,033,981

 

2.9

 GOODWILL AND INTANGIBLE FRANCHISE RIGHTS 

 

1,206,188

 

1,162,503

 

3.8

 OTHER ASSETS 

 

9,727

 

11,862

 

(18.0)

 Total assets 

 

$ 4,533,846

 

$     4,396,716

 

3.1

             

 LIABILITIES AND STOCKHOLDERS' EQUITY: 

           

 CURRENT LIABILITIES: 

           

 Floorplan notes payable - credit facility and other 

 

$ 1,239,792

 

$     1,265,719

 

(2.0)

 Offset account related to floorplan notes payable - credit facility 

 

(104,081)

 

(110,759)

 

(6.0)

 Floorplan notes payable - manufacturer affiliates 

 

437,672

 

389,071

 

12.5

 Offset account related to floorplan notes payable - manufacturer affiliates 

 

(30,000)

 

(25,500)

 

17.6

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

 

37,506

 

54,991

 

(31.8)

 Accounts payable 

 

327,594

 

280,423

 

16.8

 Accrued expenses 

 

194,870

 

185,323

 

5.2

 Total current liabilities 

 

2,103,353

 

2,039,268

 

3.1

 5.00% SENIOR NOTES (principal of $550,000 at March 31, 2016 and December 31, 2015, respectively) 

 

539,309

 

538,933

 

0.1

 5.25% SENIOR NOTES (principal of $300,000 at March 31, 2016 and December 31, 2015, respectively) 

 

295,186

 

295,156

 

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

 

375,144

 

317,290

 

18.2

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

 

47,040

 

48,155

 

(2.3)

 DEFERRED INCOME TAXES 

 

138,984

 

136,644

 

1.7

 LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES 

 

43,122

 

31,153

 

38.4

 OTHER LIABILITIES 

 

78,915

 

71,865

 

9.8

 STOCKHOLDERS' EQUITY: 

           

 Common stock 

 

257

 

257

 

 Additional paid-in capital 

 

283,196

 

291,092

 

(2.7)

 Retained earnings 

 

955,326

 

926,169

 

3.1

 Accumulated other comprehensive loss 

 

(144,856)

 

(137,984)

 

5.0

 Treasury stock 

 

(181,130)

 

(161,282)

 

12.3

 Total stockholders' equity 

 

912,793

 

918,252

 

(0.6)

 Total liabilities and stockholders' equity 

 

$ 4,533,846

 

$     4,396,716

 

3.1

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

           
     

Three Months Ended

     

March 31,

     

2016 (%)

 

2015 (%)

NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:

     

Region

Geographic Market

       

East

Massachusetts

 

5.0

 

5.8

 

Georgia

 

3.8

 

4.7

 

Florida

 

2.4

 

1.3

 

New Hampshire

 

1.7

 

1.7

 

New Jersey

 

1.6

 

2.2

 

Mississippi

 

1.5

 

1.6

 

Louisiana

 

1.4

 

1.6

 

South Carolina

 

1.4

 

1.4

 

Alabama

 

0.8

 

0.8

 

Maryland

 

0.4

 

0.5

     

20.0

 

21.6

           

West

Texas

 

37.0

 

38.5

 

California

 

9.0

 

9.4

 

Oklahoma

 

7.2

 

7.7

 

Kansas

 

1.8

 

2.2

 

Louisiana

 

0.6

 

0.7

     

55.6

 

58.5

           

International

United Kingdom

 

18.0

 

11.5

 

Brazil

 

6.4

 

8.4

     

100.0

 

100.0

           

NEW VEHICLE UNIT SALES BRAND MIX:

       

Toyota/Scion/Lexus

 

23.8

 

26.1

BMW/MINI

 

13.1

 

11.7

Ford/Lincoln

 

11.5

 

12.0

Volkswagen/Audi/Porsche

 

10.6

 

6.0

Honda/Acura

 

10.5

 

10.7

Nissan

 

7.9

 

9.3

Chevrolet/GMC/Buick/Cadillac

 

7.8

 

7.5

Hyundai/Kia

 

4.7

 

5.7

Chrysler/Dodge/Jeep/RAM

 

4.0

 

4.5

Mercedes-Benz/smart/Sprinter

 

3.7

 

4.1

Other

 

2.4

 

2.4

     

100.0

 

100.0

 

Group 1 Automotive, Inc.

Additional Information - U.S.

(Unaudited)

(Dollars in thousands, except per unit amounts)

             
   

Three Months Ended March 31,

   

2016

 

2015

 

% Increase/
(Decrease)

REVENUES:

           

New vehicle retail sales

 

$   1,100,393

 

$   1,087,159

 

1.2

Used vehicle retail sales

 

558,764

 

511,973

 

9.1

Used vehicle wholesale sales

 

68,873

 

69,378

 

(0.7)

Total used

 

627,637

 

581,351

 

8.0

Parts and service

 

263,458

 

242,944

 

8.4

Finance and insurance

 

90,145

 

87,046

 

3.6

Total

 

$   2,081,633

 

$   1,998,500

 

4.2

             

GROSS MARGIN %:

           

New vehicle retail sales

 

4.9

 

4.9

   

Used vehicle retail sales

 

7.8

 

7.9

   

Used vehicle wholesale sales

 

1.2

 

3.1

   

Total used

 

7.1

 

7.3

   

Parts and service

 

54.7

 

53.9

   

Finance and insurance

 

100.0

 

100.0

   

Total

 

16.0

 

15.7

   
             

GROSS PROFIT:

           

New vehicle retail sales

 

$        54,146

 

$        53,687

 

0.9

Used vehicle retail sales

 

43,455

 

40,552

 

7.2

Used vehicle wholesale sales

 

844

 

2,145

 

(60.7)

Total used

 

44,299

 

42,697

 

3.8

Parts and service

 

144,120

 

131,058

 

10.0

Finance and insurance

 

90,145

 

87,046

 

3.6

Total

 

$      332,710

 

$      314,488

 

5.8

             

UNITS SOLD:

           

Retail new vehicles sold

 

30,801

 

31,438

 

(2.0)

Retail used vehicles sold

 

26,831

 

25,148

 

6.7

Wholesale used vehicles sold

 

10,413

 

10,544

 

(1.2)

Total used

 

37,244

 

35,692

 

4.3

             

AVERAGE RETAIL SALES PRICE:

           

New vehicle retail

 

$        35,726

 

$        34,581

 

3.3

Used vehicle retail

 

$        20,825

 

$        20,358

 

2.3

             

GROSS PROFIT PER UNIT SOLD:

           

New vehicle retail sales

 

$          1,758

 

$          1,708

 

2.9

Used vehicle retail sales

 

1,620

 

1,613

 

0.4

Used vehicle wholesale sales

 

81

 

203

 

(60.1)

Total used

 

1,189

 

1,196

 

(0.6)

Finance and insurance (per retail unit)

 

$          1,564

 

$          1,538

 

1.7

OTHER: (1)

           

SG&A expenses

 

$      244,086

 

$      229,972

 

6.1

SG&A as % revenues

 

11.7

 

11.5

   

SG&A as % gross profit

 

73.4

 

73.1

   

Operating margin %

 

3.7

 

3.7

   

Pretax margin %

 

2.5

 

2.7

   
             

INTEREST EXPENSE:

           

Floorplan interest expense

 

$      (10,049)

 

$        (8,518)

 

18.0

Floorplan assistance

 

11,251

 

10,576

 

6.4

Net floorplan income

 

$          1,202

 

$          2,058

 

(41.6)

Other interest expense, net

 

$      (15,513)

 

$      (12,724)

 

21.9

 

(1) These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.

 

Group 1 Automotive, Inc.

Additional Information - U.K.

(Unaudited)

(Dollars in thousands, except per unit amounts)

                 
   

Three Months Ended March 31,

   

2016

 

2015

 

% Increase/
(Decrease)

 

Local Currency
% Increase/
(Decrease)

REVENUES:

               

New vehicle retail sales

 

$  246,536

 

$  151,211

 

63.0

 

72.1

Used vehicle retail sales

 

110,117

 

89,136

 

23.5

 

30.8

Used vehicle wholesale sales

 

32,032

 

28,078

 

14.1

 

20.8

Total used

 

142,149

 

117,214

 

21.3

 

28.4

Parts and service

 

34,549

 

25,588

 

35.0

 

43.0

Finance and insurance

 

8,662

 

5,528

 

56.7

 

65.7

Total

 

$  431,896

 

$  299,541

 

44.2

 

52.4

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.6

 

6.6

       

Used vehicle retail sales

 

4.7

 

5.2

       

Used vehicle wholesale sales

 

1.8

 

1.1

       

Total used

 

4.1

 

4.2

       

Parts and service

 

53.4

 

53.6

       

Finance and insurance

 

100.0

 

100.0

       

Total

 

10.8

 

11.4

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$    13,854

 

$      9,950

 

39.2

 

46.6

Used vehicle retail sales

 

5,210

 

4,638

 

12.3

 

18.9

Used vehicle wholesale sales

 

572

 

321

 

78.2

 

88.3

Total used

 

5,782

 

4,959

 

16.6

 

23.4

Parts and service

 

18,448

 

13,721

 

34.5

 

42.3

Finance and insurance

 

8,662

 

5,528

 

56.7

 

65.7

Total

 

$    46,746

 

$    34,158

 

36.9

 

44.6

                 

UNITS SOLD:

               

Retail new vehicles sold

 

7,358

 

4,509

 

63.2

   

Retail used vehicles sold

 

4,595

 

3,643

 

26.1

   

Wholesale used vehicles sold

 

3,642

 

2,935

 

24.1

   

Total used

 

8,237

 

6,578

 

25.2

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$    33,506

 

$    33,535

 

(0.1)

 

5.5

Used vehicle retail

 

$    23,965

 

$    24,468

 

(2.1)

 

3.7

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$      1,883

 

$      2,207

 

(14.7)

 

(10.2)

Used vehicle retail sales

 

1,134

 

1,273

 

(10.9)

 

(5.7)

Used vehicle wholesale sales

 

157

 

109

 

44.0

 

51.7

Total used

 

702

 

754

 

(6.9)

 

(1.4)

Finance and insurance (per retail unit)

 

$         725

 

$         678

 

6.9

 

13.0

OTHER: (1)

               

SG&A expenses

 

$    36,875

 

$    26,762

 

37.8

 

45.9

SG&A as % revenues

 

8.5

 

8.9

       

SG&A as % gross profit

 

78.9

 

78.3

       

Operating margin %

 

1.9

 

2.1

       

Pretax margin %

 

1.4

 

1.7

       
                 

INTEREST EXPENSE:

               

Floorplan interest expense

 

$        (920)

 

$        (510)

 

80.4

 

91.3

Floorplan assistance

 

263

 

185

 

42.2

 

50.4

Net floorplan expense

 

$        (657)

 

$        (325)

 

102.2

 

114.6

Other interest expense, net

 

$     (1,282)

 

$        (735)

 

74.4

 

84.7

 

(1) These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.

 

Group 1 Automotive, Inc.

Additional Information - Brazil

(Unaudited)

(Dollars in thousands, except per unit amounts)

                 
   

Three Months Ended March 31,

   

2016

 

2015

 

% Increase/
(Decrease)

 

Local Currency
% Increase/
(Decrease)

REVENUES:

               

New vehicle retail sales

 

$   62,922

 

$      94,354

 

(33.3)

 

(9.1)

Used vehicle retail sales

 

19,290

 

22,084

 

(12.7)

 

20.3

Used vehicle wholesale sales

 

687

 

2,736

 

(74.9)

 

(65.3)

Total used

 

19,977

 

24,820

 

(19.5)

 

10.9

Parts and service

 

10,585

 

13,657

 

(22.5)

 

5.6

Finance and insurance

 

1,342

 

1,982

 

(32.3)

 

(7.3)

Total

 

$   94,826

 

$    134,813

 

(29.7)

 

(3.9)

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.9

 

6.5

       

Used vehicle retail sales

 

2.8

 

4.2

       

Used vehicle wholesale sales

 

4.8

 

7.8

       

Total used

 

2.8

 

4.6

       

Parts and service

 

37.9

 

44.1

       

Finance and insurance

 

100.0

 

100.0

       

Total

 

10.2

 

11.3

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$     3,727

 

$        6,094

 

(38.8)

 

(16.3)

Used vehicle retail sales

 

535

 

931

 

(42.5)

 

(19.5)

Used vehicle wholesale sales

 

33

 

213

 

(84.5)

 

(78.7)

Total used

 

568

 

1,144

 

(50.3)

 

(30.5)

Parts and service

 

4,008

 

6,018

 

(33.4)

 

(9.0)

Finance and insurance

 

1,342

 

1,982

 

(32.3)

 

(7.3)

Total

 

$     9,645

 

$      15,238

 

(36.7)

 

(13.3)

                 

UNITS SOLD:

               

Retail new vehicles sold

 

2,622

 

3,292

 

(20.4)

   

Retail used vehicles sold

 

1,365

 

1,192

 

14.5

   

Wholesale used vehicles sold

 

311

 

461

 

(32.5)

   

Total used

 

1,676

 

1,653

 

1.4

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$   23,998

 

$      28,662

 

(16.3)

 

14.1

Used vehicle retail

 

$   14,132

 

$      18,527

 

(23.7)

 

5.1

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$     1,421

 

$        1,851

 

(23.2)

 

5.1

Used vehicle retail sales

 

392

 

781

 

(49.8)

 

(29.7)

Used vehicle wholesale sales

 

106

 

462

 

(77.1)

 

(68.4)

Total used

 

339

 

692

 

(51.0)

 

(31.5)

Finance and insurance (per retail unit)

 

$        337

 

$           442

 

(23.8)

 

4.2

OTHER: (1)

               

SG&A expenses

 

$   10,019

 

$      14,735

 

(32.0)

 

(6.9)

SG&A as % revenues

 

10.6

 

10.9

       

SG&A as % gross profit

 

103.9

 

96.7

       

Operating margin %

 

(0.7)

 

       

Pretax margin %

 

(0.9)

 

(0.6)

       
                 

INTEREST EXPENSE:

               

 Floorplan interest expense 

 

$         (41)

 

$         (320)

 

(87.2)

 

(81.2)

 Floorplan assistance 

 

 

 

-

 

-

 Net floorplan expense 

 

$         (41)

 

$         (320)

 

(87.2)

 

(81.2)

 Other interest expense, net 

 

$       (134)

 

$         (452)

 

(70.4)

 

(59.2)

 

(1) These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

(Dollars in thousands, except per unit amounts)

                 
   

Three Months Ended March 31,

   

2016

 

2015

 

% Increase/
(Decrease)

 

Local Currency
% Increase/
(Decrease)

REVENUES:

               

New vehicle retail sales

 

$   1,409,851

 

$   1,332,724

 

5.8

 

8.5

Used vehicle retail sales

 

688,171

 

623,193

 

10.4

 

12.6

Used vehicle wholesale sales

 

101,592

 

100,192

 

1.4

 

3.5

Total used

 

789,763

 

723,385

 

9.2

 

11.4

Parts and service

 

308,592

 

282,189

 

9.4

 

11.4

Finance and insurance

 

100,149

 

94,556

 

5.9

 

7.0

Total

 

$   2,608,355

 

$   2,432,854

 

7.2

 

9.7

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.1

 

5.2

       

Used vehicle retail sales

 

7.1

 

7.4

       

Used vehicle wholesale sales

 

1.4

 

2.7

       

Total used

 

6.4

 

6.7

       

Parts and service

 

54.0

 

53.4

       

Finance and insurance

 

100.0

 

100.0

       

Total

 

14.9

 

15.0

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$        71,727

 

$        69,731

 

2.9

 

5.9

Used vehicle retail sales

 

49,200

 

46,121

 

6.7

 

7.8

Used vehicle wholesale sales

 

1,449

 

2,679

 

(45.9)

 

(44.3)

Total used

 

50,649

 

48,800

 

3.8

 

4.9

Parts and service

 

166,576

 

150,797

 

10.5

 

12.2

Finance and insurance

 

100,149

 

94,556

 

5.9

 

7.0

Total

 

$      389,101

 

$      363,884

 

6.9

 

8.6

                 

UNITS SOLD:

               

Retail new vehicles sold

 

40,781

 

39,239

 

3.9

   

Retail used vehicles sold

 

32,791

 

29,983

 

9.4

   

Wholesale used vehicles sold

 

14,366

 

13,940

 

3.1

   

Total used

 

47,157

 

43,923

 

7.4

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$        34,571

 

$        33,964

 

1.8

 

4.4

Used vehicle retail

 

$        20,987

 

$        20,785

 

1.0

 

3.0

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$          1,759

 

$          1,777

 

(1.0)

 

1.9

Used vehicle retail sales

 

1,500

 

1,538

 

(2.5)

 

(1.4)

Used vehicle wholesale sales

 

101

 

192

 

(47.4)

 

(45.9)

Total used

 

1,074

 

1,111

 

(3.3)

 

(2.3)

Finance and insurance (per retail unit)

 

$          1,361

 

$          1,366

 

(0.4)

 

0.6

OTHER: (1)

               

SG&A expenses

 

$      290,980

 

$      271,469

 

7.2

 

9.4

SG&A as % revenues

 

11.2

 

11.2

       

SG&A as % gross profit

 

74.8

 

74.6

       

Operating margin %

 

3.3

 

3.3

       

Pretax margin %

 

2.2

 

2.4

       
                 

INTEREST EXPENSE:

               

 Floorplan interest expense 

 

$      (11,010)

 

$        (9,348)

 

17.8

 

18.6

 Floorplan assistance 

 

11,514

 

10,761

 

7.0

 

7.0

 Net floorplan expense 

 

$             504

 

$          1,413

 

(64.3)

 

(69.5)

 Other interest expense, net 

 

$      (16,929)

 

$      (13,911)

 

21.7

 

22.6

 

(1) These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)

             
   

Three Months Ended March 31,

   

2016

 

2015

 

% Increase/
(Decrease)

REVENUES:

           

New vehicle retail sales

 

$   1,061,126

 

$   1,068,403

 

(0.7)

Used vehicle retail sales

 

538,622

 

502,064

 

7.3

Used vehicle wholesale sales

 

65,078

 

67,380

 

(3.4)

Total used

 

603,700

 

569,444

 

6.0

Parts and service

 

254,955

 

237,698

 

7.3

Finance and insurance

 

87,598

 

86,106

 

1.7

Total

 

$   2,007,379

 

$   1,961,651

 

2.3

             

GROSS MARGIN %:

           

New vehicle retail sales

 

4.9

 

4.9

   

Used vehicle retail sales

 

7.8

 

8.0

   

Used vehicle wholesale sales

 

1.7

 

3.1

   

Total used

 

7.1

 

7.4

   

Parts and service

 

54.7

 

54.0

   

Finance and insurance

 

100.0

 

100.0

   

Total

 

16.0

 

15.8

   
             

GROSS PROFIT:

           

New vehicle retail sales

 

$        51,842

 

$        52,647

 

(1.5)

Used vehicle retail sales

 

41,795

 

40,009

 

4.5

Used vehicle wholesale sales

 

1,091

 

2,110

 

(48.3)

Total used

 

42,886

 

42,119

 

1.8

Parts and service

 

139,381

 

128,286

 

8.6

Finance and insurance

 

87,598

 

86,106

 

1.7

Total

 

$      321,707

 

$      309,158

 

4.1

             

UNITS SOLD:

           

Retail new vehicles sold

 

29,972

 

30,939

 

(3.1)

Retail used vehicles sold

 

26,148

 

24,761

 

5.6

Wholesale used vehicles sold

 

10,112

 

10,356

 

(2.4)

Total used

 

36,260

 

35,117

 

3.3

             

AVERAGE RETAIL SALES PRICE:

           

New vehicle retail

 

$        35,404

 

$        34,533

 

2.5

Used vehicle retail

 

$        20,599

 

$        20,276

 

1.6

             

GROSS PROFIT PER UNIT SOLD:

           

New vehicle retail sales

 

$          1,730

 

$          1,702

 

1.6

Used vehicle retail sales

 

1,598

 

1,616

 

(1.1)

Used vehicle wholesale sales

 

108

 

204

 

(47.1)

Total used

 

1,183

 

1,199

 

(1.3)

Finance and insurance (per retail unit)

 

$          1,561

 

$          1,546

 

1.0

             

OTHER:(2)

           

SG&A expenses

 

$      235,287

 

$      224,342

 

4.9

SG&A as % revenues

 

11.7

 

11.4

   

SG&A as % gross profit

 

73.1

 

72.6

   

Operating margin %

 

3.8

 

3.8

   
 

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

 

(2) These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.

 

Group 1 Automotive, Inc.

   

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

   

(Unaudited)

   

(Dollars in thousands, except per unit amounts)

   
                 
   

Three Months Ended March 31,

   

2016

 

2015

 

% Increase/
(Decrease)

 

Local Currency
% Increase/
(Decrease)

REVENUES:

               

New vehicle retail sales

 

$  172,612

 

$  151,211

 

14.2

 

20.4

Used vehicle retail sales

 

91,515

 

89,136

 

2.7

 

8.6

Used vehicle wholesale sales

 

24,788

 

28,078

 

(11.7)

 

(6.6)

Total used

 

116,303

 

117,214

 

(0.8)

 

5.0

Parts and service

 

25,737

 

25,588

 

0.6

 

6.5

Finance and insurance

 

6,687

 

5,528

 

21.0

 

27.8

Total

 

$  321,339

 

$  299,541

 

7.3

 

13.3

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

6.0

 

6.6

       

Used vehicle retail sales

 

4.9

 

5.2

       

Used vehicle wholesale sales

 

2.4

 

1.1

       

Total used

 

4.3

 

4.2

       

Parts and service

 

54.5

 

53.6

       

Finance and insurance

 

100.0

 

100.0

       

Total

 

11.2

 

11.4

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$    10,291

 

$      9,952

 

3.4

 

8.9

Used vehicle retail sales

 

4,442

 

4,637

 

(4.2)

 

1.3

Used vehicle wholesale sales

 

587

 

320

 

83.4

 

93.7

Total used

 

5,029

 

4,957

 

1.5

 

7.3

Parts and service

 

14,030

 

13,721

 

2.3

 

8.2

Finance and insurance

 

6,687

 

5,528

 

21.0

 

27.8

Total

 

$    36,037

 

$    34,158

 

5.5

 

11.4

                 

UNITS SOLD:

               

Retail new vehicles sold

 

5,121

 

4,509

 

13.6

   

Retail used vehicles sold

 

3,896

 

3,643

 

6.9

   

Wholesale used vehicles sold

 

3,039

 

2,935

 

3.5

   

Total used

 

6,935

 

6,578

 

5.4

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$    33,707

 

$    33,535

 

0.5

 

6.0

Used vehicle retail

 

$    23,489

 

$    24,468

 

(4.0)

 

1.6

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$      2,010

 

$      2,207

 

(8.9)

 

(4.1)

Used vehicle retail sales

 

1,140

 

1,273

 

(10.4)

 

(5.2)

Used vehicle wholesale sales

 

193

 

109

 

77.1

 

87.1

Total used

 

725

 

754

 

(3.8)

 

1.8

Finance and insurance (per retail unit)

 

$         742

 

$         678

 

9.4

 

15.6

OTHER:  (2)

               

SG&A expenses

 

$    26,899

 

$    26,763

 

0.5

 

6.4

SG&A as % revenues

 

8.4

 

8.9

       

SG&A as % gross profit

 

74.6

 

78.3

       

Operating margin %

 

2.5

 

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) These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.

 

Group 1 Automotive, Inc.

   

Additional Information - Same Store Brazil (1)

   

(Unaudited)

   

(Dollars in thousands, except per unit amounts)

   
                 
   

Three Months Ended March 31,

   

2016

 

2015

 

% Increase/
(Decrease)

 

Local Currency
% Increase/
(Decrease)

REVENUES:

               

New vehicle retail sales

 

$  62,170

 

$    90,439

 

(31.3)

 

(6.2)

Used vehicle retail sales

 

18,922

 

20,705

 

(8.6)

 

26.2

Used vehicle wholesale sales

 

587

 

2,379

 

(75.3)

 

(65.6)

Total used

 

19,509

 

23,084

 

(15.5)

 

16.7

Parts and service

 

10,307

 

12,728

 

(19.0)

 

10.5

Finance and insurance

 

1,332

 

1,927

 

(30.9)

 

(5.2)

Total

 

$  93,318

 

$  128,178

 

(27.2)

 

(0.4)

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

6.1

 

6.5

       

Used vehicle retail sales

 

3.0

 

4.2

       

Used vehicle wholesale sales

 

6.0

 

7.6

       

Total used

 

3.1

 

4.5

       

Parts and service

 

38.1

 

44.7

       

Finance and insurance

 

100.0

 

100.0

       

Total

 

10.3

 

11.3

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$    3,789

 

$      5,868

 

(35.4)

 

(11.7)

Used vehicle retail sales

 

566

 

863

 

(34.4)

 

(7.6)

Used vehicle wholesale sales

 

35

 

181

 

(80.7)

 

(72.7)

Total used

 

601

 

1,044

 

(42.4)

 

(18.9)

Parts and service

 

3,923

 

5,695

 

(31.1)

 

(5.8)

Finance and insurance

 

1,332

 

1,927

 

(30.9)

 

(5.2)

Total

 

$    9,645

 

$    14,534

 

(33.6)

 

(9.1)

                 

UNITS SOLD:

               

Retail new vehicles sold

 

2,559

 

3,079

 

(16.9)

   

Retail used vehicles sold

 

1,317

 

1,070

 

23.1

   

Wholesale used vehicles sold

 

291

 

384

 

(24.2)

   

Total used

 

1,608

 

1,454

 

10.6

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$  24,295

 

$    29,373

 

(17.3)

 

12.8

Used vehicle retail

 

$  14,368

 

$    19,350

 

(25.8)

 

2.5

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$    1,481

 

$      1,906

 

(22.3)

 

6.2

Used vehicle retail sales

 

430

 

807

 

(46.7)

 

(24.9)

Used vehicle wholesale sales

 

120

 

471

 

(74.5)

 

(64.0)

Total used

 

374

 

718

 

(47.9)

 

(26.6)

Finance and insurance (per retail unit)

 

$       344

 

$         464

 

(25.9)

 

1.5

                 

OTHER:(2)

               

SG&A expenses

 

$    9,760

 

$    12,776

 

(23.6)

 

4.8

SG&A as % revenues

 

10.5

 

10.0

       

SG&A as % gross profit

 

101.2

 

87.9

       

Operating margin %

 

(0.4)

 

1.1

       
 

(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) These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.

 

Group 1 Automotive, Inc.

   

Additional Information - Same Store Consolidated (1)

   

(Unaudited)

   

(Dollars in thousands, except per unit amounts)

   
                 
   

Three Months Ended March 31,

   

2016

 

2015

 

% Increase/
(Decrease)

 

Local Currency
% Increase/
(Decrease)

REVENUES:

               

New vehicle retail sales

 

$  1,295,908

 

$  1,310,053

 

(1.1)

 

1.4

Used vehicle retail sales

 

649,059

 

611,905

 

6.1

 

8.1

Used vehicle wholesale sales

 

90,453

 

97,837

 

(7.5)

 

(5.8)

Total used

 

739,512

 

709,742

 

4.2

 

6.2

Parts and service

 

290,999

 

276,014

 

5.4

 

7.3

Finance and insurance

 

95,617

 

93,561

 

2.2

 

3.1

Total

 

$  2,422,036

 

$  2,389,370

 

1.4

 

3.6

                 

GROSS MARGIN %:

               

New vehicle retail sales

 

5.1

 

5.2

       

Used vehicle retail sales

 

7.2

 

7.4

       

Used vehicle wholesale sales

 

1.9

 

2.7

       

Total used

 

6.6

 

6.8

       

Parts and service

 

54.1

 

53.5

       

Finance and insurance

 

100.0

 

100.0

       

Total

 

15.2

 

15.0

       
                 

GROSS PROFIT:

               

New vehicle retail sales

 

$       65,922

 

$       68,467

 

(3.7)

 

(0.9)

Used vehicle retail sales

 

46,803

 

45,509

 

2.8

 

3.9

Used vehicle wholesale sales

 

1,713

 

2,611

 

(34.4)

 

(32.6)

Total used

 

48,516

 

48,120

 

0.8

 

1.9

Parts and service

 

157,334

 

147,702

 

6.5

 

8.0

Finance and insurance

 

95,617

 

93,561

 

2.2

 

3.1

Total

 

$     367,389

 

$     357,850

 

2.7

 

4.2

                 

UNITS SOLD:

               

Retail new vehicles sold

 

37,652

 

38,527

 

(2.3)

   

Retail used vehicles sold

 

31,361

 

29,474

 

6.4

   

Wholesale used vehicles sold

 

13,442

 

13,675

 

(1.7)

   

Total used

 

44,803

 

43,149

 

3.8

   
                 

AVERAGE RETAIL SALES PRICE:

               

New vehicle retail

 

$       34,418

 

$       34,004

 

1.2

 

3.7

Used vehicle retail

 

$       20,696

 

$       20,761

 

(0.3)

 

1.6

                 

GROSS PROFIT PER UNIT SOLD:

               

New vehicle retail sales

 

$         1,751

 

$         1,777

 

(1.5)

 

1.4

Used vehicle retail sales

 

1,492

 

1,544

 

(3.4)

 

(2.3)

Used vehicle wholesale sales

 

127

 

191

 

(33.5)

 

(31.4)

Total used

 

1,083

 

1,115

 

(2.9)

 

(1.8)

Finance and insurance (per retail unit)

 

$         1,385

 

$         1,376

 

0.7

 

1.6

                 

OTHER:(2)

               

SG&A expenses

 

$     271,946

 

$     263,881

 

3.1

 

5.0

SG&A as % revenues

 

11.2

 

11.0

       

SG&A as % gross profit

 

74.0

 

73.7

       

Operating margin %

 

3.5

 

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) These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.

 

Group 1 Automotive, Inc.

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

(Unaudited)

 (Dollars in thousands, except per share amounts)

             
   

Three Months Ended March 31,

   

2016

 

2015

 

% Increase/
(Decrease)

SG&A RECONCILIATION:

         
 

As reported

$  245,838

 

$  229,972

 

6.9

 

  Pre-tax adjustments:

         
 

   Catastrophic events 

(2,655)

 

   
 

   Gain (loss) on real estate and dealership transactions 

933

 

   
 

   Acquisition costs 

(30)

 

   
 

Adjusted SG&A (1)

$  244,086

 

$  229,972

 

6.1

             

SG&A AS % REVENUES:

         
 

Unadjusted

11.8

 

11.5

   
 

Adjusted (1)

11.7

 

11.5

   

SG&A AS % GROSS PROFIT:

         
 

Unadjusted

73.9

 

73.1

   
 

Adjusted (1)

73.4

 

73.1

   

OPERATING MARGIN %

         
 

Unadjusted

3.6

 

3.7

   
 

Adjusted (1), (2)

3.7

 

3.7

   

PRETAX MARGIN %:

         
 

Unadjusted

2.4

 

2.7

   
 

Adjusted (1), (3)

2.5

 

2.7

   
             

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$  238,106

 

$  224,342

 

6.1

 

  Pre-tax adjustments:

         
 

   Catastrophic events 

(2,655)

 

   
 

   Gain (loss) on real estate and dealership transactions 

(134)

 

   
 

   Acquisition costs 

(30)

 

   
 

Adjusted Same Store SG&A (1)

$  235,287

 

$  224,342

 

4.9

             

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

11.9

 

11.4

   
 

Adjusted (1)

11.7

 

11.4

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

74.0

 

72.6

   
 

Adjusted (1)

73.1

 

72.6

   

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

3.6

 

3.8

   
 

Adjusted (1), (3)

3.8

 

3.8

   
   

(1)

We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items.  These adjusted measures are not measures of financial performance under GAAP.  As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures.  We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations. 

   

(2)

Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $510 for the three months ended March 31, 2016.

   

(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $510 for the three months ended March 31, 2016.

 

Group 1 Automotive, Inc.

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

(Unaudited)

 (Dollars in thousands, except per share amounts)

             
   

Three Months Ended March 31,

   

2016

 

2015

 

% Increase/
(Decrease)

SG&A RECONCILIATION:

         
 

As reported

$  37,436

 

$  26,762

 

39.9

 

  Pre-tax adjustments:

         
 

   Acquisition costs 

(561)

 

   
 

Adjusted SG&A (1)

$  36,875

 

$  26,762

 

37.8

             

SG&A AS % REVENUES:

         
 

Unadjusted

8.7

 

8.9

   
 

Adjusted (1)

8.5

 

8.9

   

SG&A AS % GROSS PROFIT:

         
 

Unadjusted

80.1

 

78.3

   
 

Adjusted (1)

78.9

 

78.3

   

OPERATING MARGIN %

         
 

Unadjusted

1.8

 

2.1

   
 

Adjusted (1), (2)

1.9

 

2.1

   

PRETAX MARGIN %:

         
 

Unadjusted

1.3

 

1.7

   
 

Adjusted (1), (2)

1.4

 

1.7

   
             

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$  27,460

 

$  26,763

 

2.6

 

  Pre-tax adjustments:

         
 

   Acquisition costs 

(561)

 

   
 

Adjusted Same Store SG&A (1)

$  26,899

 

$  26,763

 

0.5

             

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

8.5

 

8.9

   
 

Adjusted (1)

8.4

 

8.9

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

76.2

 

78.3

   
 

Adjusted (1)

74.6

 

78.3

   

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

2.3

 

2.1

   
 

Adjusted (1), (3)

2.5

 

2.1

   
   

(1)

We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items.  These adjusted measures are not measures of financial performance under GAAP.  As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures.  We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations. 

   

(2)

Excludes the impact of SG&A reconciling items above.

   

(3)

Excludes the impact of Same Store SG&A reconciling items above.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Brazil

(Unaudited)

 (Dollars in thousands, except per share amounts)

             
   

Three Months Ended March 31,

   

2016

 

2015

 

% Increase/
(Decrease)

SG&A RECONCILIATION:

         
 

As reported

$  10,390

 

$  14,735

 

(29.5)

 

  Pre-tax adjustments:

         
 

   Gain (loss) on real estate and dealership transactions 

(371)

 

   
 

Adjusted SG&A (1)

$  10,019

 

$  14,735

 

(32.0)

             

SG&A AS % REVENUES:

         
 

Unadjusted

11.0

 

10.9

   
 

Adjusted (1)

10.6

 

10.9

   

SG&A AS % GROSS PROFIT:

         
 

Unadjusted

107.7

 

96.7

   
 

Adjusted (1)

103.9

 

96.7

   

OPERATING MARGIN %

         
 

Unadjusted

(1.5)

 

   
 

Adjusted (1), (2)

(0.7)

 

   

PRETAX MARGIN %:

         
 

Unadjusted

(1.7)

 

(0.6)

   
 

Adjusted (1), (2)

(0.9)

 

(0.6)

   
             

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

(0.9)

 

1.1

   
 

Adjusted (1), (3)

(0.4)

 

1.1

   
   

(1)

We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items.  These adjusted measures are not measures of financial performance under GAAP.  As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures.  We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations. 

   

(2)

Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $423 for the three months ended March 31, 2016.

   

(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $423 for the three months ended March 31, 2016.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - CONSOLIDATED

(Unaudited)

 (Dollars in thousands, except per share amounts)

             
   

Three Months Ended March 31,

   

2016

 

2015

 

% Increase/
(Decrease)

             

NET (LOSS) INCOME RECONCILIATION:

         
 

As reported

$    34,291

 

$    35,815

 

(4.3)

 

  Pre-tax adjustments:

         
 

  Catastrophic events (4)

1,659

 

   
 

  (Gain) loss on real estate and dealership transactions (5)

212

 

   
 

  Acquisition costs including related tax impact (6)

578

 

   
 

  Non-cash asset impairment (7)

315

 

   
 

Adjusted net income (1)

$    37,055

 

$    35,815

 

3.5

             

ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED

         
 

COMMON SHARES RECONCILIATION:

         
 

Adjusted net income (1)

$    37,055

 

$    35,815

 

3.5

 

Less: Adjusted earnings allocated to participating securities

1,457

 

1,388

 

5.0

 

Adjusted net income available to diluted common shares (1)

$    35,598

 

$    34,427

 

3.4

             

 DILUTED (LOSS) INCOME PER COMMON SHARE RECONCILIATION: 

       
 

As reported

$        1.47

 

$        1.47

 

 

  Pre-tax adjustments:

         
 

   Catastrophic events  

0.07

 

   
 

   (Gain) loss on real estate and dealership transactions  

0.01

 

   
 

   Acquisition costs including related tax impact  

0.03

 

   
 

   Non-cash asset impairment  

0.01

 

   
 

Adjusted diluted income per share (1)

$        1.59

 

$        1.47

 

8.2

             

SG&A RECONCILIATION:

         
 

As reported

$  293,664

 

$  271,469

 

8.2

 

  Pre-tax adjustments:

         
 

   Catastrophic events  

(2,655)

 

   
 

   Gain (loss) on real estate and dealership transactions  

562

 

   
 

   Acquisition costs 

(591)

 

   
 

Adjusted SG&A (1)

$  290,980

 

$  271,469

 

7.2

             

SG&A AS % REVENUES:

         
 

Unadjusted

11.3

 

11.2

   
 

Adjusted (1)

11.2

 

11.2

   

SG&A AS % GROSS PROFIT:

         
 

Unadjusted

75.5

 

74.6

   
 

Adjusted (1)

74.8

 

74.6

   

OPERATING MARGIN %

         
 

Unadjusted

3.1

 

3.3

   
 

Adjusted (1), (2)

3.3

 

3.3

   

PRETAX MARGIN %:

         
 

Unadjusted

2.1

 

2.4

   
 

Adjusted (1), (2)

2.2

 

2.4

   
             

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$  275,326

 

$  263,881

 

4.3

 

  Pre-tax adjustments:

         
 

   Catastrophic events  

(2,655)

 

   
 

   Gain (loss) on real estate and dealership transactions  

(134)

 

   
 

   Acquisition costs 

(591)

 

   
 

Adjusted Same Store SG&A (1)

$  271,946

 

$  263,881

 

3.1

             

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

11.4

 

11.0

   
 

Adjusted (1)

11.2

 

11.0

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

74.9

 

73.7

   
 

Adjusted (1)

74.0

 

73.7

   

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

3.3

 

3.5

   
 

Adjusted (1), (3)

3.5

 

3.5

   
   

(1)

We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items.  These adjusted measures are not measures of financial performance under GAAP.  As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures.  We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations. 

   

(2)

Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges for all periods.

   

(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $932 for the three months ended March 31, 2016.

   

(4)

Adjustment is net of tax benefit of $996 for the three months ended March 31, 2016, calculated utilizing the applicable federal and state tax rates for adjustment.

   

(5)

Adjustment is net of tax provision of $349 for the three months ended March 31, 2016, calculated utilizing the applicable federal and state tax rates for adjustment.

   

(6)

Adjustment is net of tax benefit of $11 for the three months ended March 31, 2016, calculated utilizing the applicable federal and state tax rates for adjustment.

   

(7)

Adjustment is net of tax benefit of $195 for the three months ended March 31, 2016, calculated utilizing the applicable federal and state tax rates for adjustment.

 

Group 1 Automotive, Inc. Logo.

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SOURCE Group 1 Automotive, Inc.