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Group 1 Automotive

800 Gessner
Houston, TX 77024

  • Sales: (713) 647-5700
Investor Relations

Group 1 Automotive Announces Second Quarter 2018 Financial Results

Record Results Driven by Company-Wide Focus on Used Vehicles and Strong Cost Control

HOUSTON, July 26, 2018 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), ("Group 1" or the "Company"), an international, Fortune 500 automotive retailer, today reported 2018 second quarter net income of $56.5 million, diluted earnings per common share of $2.72, adjusted net income (a non-GAAP measure) of $50.8 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $2.45.

Second quarter 2018 adjusted net income and diluted earnings per share exclude approximately $5.7 million net after-tax adjustments, or $0.27 per common share. These adjustments consisted of a net gain on real estate and dealership transactions, which was approximately $15.2 million, or $0.73 per common share, partially offset by the impact of catastrophic events of $4.4 million, or $0.21 per common share; non-cash asset impairments of $3.2 million, or $0.15 per common share; and legal settlements of approximately $2.0 million, or $0.10 per common share.

"We delivered a solid quarter, reflecting a relatively strong U.S. vehicle market in June, favorable overall performance in the U.K., a corporate-wide focus on our used vehicle business, and a major cost reduction initiative in both the U.S. and the U.K. early this year that began to pay dividends this quarter," said Earl J. Hesterberg, Group 1's president and chief executive officer. "These results demonstrate our ability to grow earnings in a flat retail sales environment. In addition, during the quarter, the Company has launched a renewed focus on capital deployment, with an emphasis on actions, such as disposal of underperforming assets, more stringent control of capital expenditures, and enhanced share repurchases, targeted at delivering improved shareholder value. Actions taken this quarter include the disposal of a large underperforming dealership and a stepped-up pace of share repurchases."

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

  • Total revenue grew 10.2 percent (9.2 percent) to $2.9 billion.
  • Total gross profit grew 8.2 percent (7.5 percent), to $438.2 million.
  • New vehicle revenues increased 7.4 percent (6.6 percent) on 6.3 percent higher unit sales. New vehicle gross profit improved 2.2 percent (1.8 percent), to $76.6 million.
  • Retail used vehicle revenues increased 19.8 percent (18.4 percent) on 18.8 percent higher unit sales. Retail used vehicle gross profit increased 14.0 percent (12.7 percent), to $51.2 million. Total used vehicle gross profit was up 15.3 percent (14.1 percent), to $51.5 million. In the U.S., the Val-u-Line initiative the Company launched last quarter has continued to build momentum, with Same Store used retail unit sales increasing 11 percent, and Val-u-Line units growing to 10 percent of the mix.
  • Parts and service gross profit increased 9.1 percent (8.3 percent) on revenue growth of 8.0 percent (7.4 percent). Same Store parts and service gross profit increased 3.2 percent (2.7 percent) on Same Store parts and service revenue growth of 2.4 percent (2.0 percent).
  • Finance and Insurance (F&I) gross profit per retail unit (PRU) decreased 3.4 percent (decreased 3.9 percent), to $1,412 and total F&I gross profit increased $8.6 million, or 8.1 percent (7.5 percent).
  • Selling, General and Administrative (SG&A) expenses as a percent of gross profit improved 340 basis points, to 70.3 percent. Adjusted Same Store SG&A as a percent of gross profit improved 110 basis points, to 72.3 percent, reflecting strong improvements in all three of our markets.
  • Provision for income taxes declined 17.0 percent, to $18.7 million, or to approximately 24.9 percent of income before income taxes, primarily reflecting the impact of the U.S. Tax Reform Bill that reduced the U.S. corporate income tax rate.

 

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

  • United States:

    The Company's U.S. operations accounted for 73.7 percent of total revenues and 80.0 percent of total gross profit. Total U.S. revenues were $2.2 billion, an increase of 2.1 percent, driven by increases in used retail (up 10.4 percent), F&I revenue (up 3.1 percent), and parts and service (up 2.2 percent). F&I gross profit PRU decreased $33, or 2.0 percent per unit, to $1,655; and total gross profit grew 3.0 percent, to $350.7 million.

    "We were pleased with our used car performance and cost control in the U.S. in the second quarter. Same Store used vehicle retail unit sales were up 11 percent and total used vehicle gross profit increased six percent. Total Same Store gross profit increased one percent, which when coupled with strong cost control, evidenced by adjusted SG&A leverage of 110 basis points, drove improved bottom-line results. Same Store adjusted operating income increased five percent and adjusted operating margin improved 20 basis points to 4.2 percent," said Daryl Kenningham, Group 1's president of U.S. operations.

    New vehicle retail gross profit PRU was roughly flat with a slight increase of $4, to $1,855. Total used vehicle gross profit PRU increased $69, to $1,128, reflecting the impact of the used vehicle initiatives we launched last quarter, which drove a shift of over 2,000 units from low-margin wholesale to higher margin retail sales.

    SG&A expenses as a percent of gross profit improved 480 basis points, to 66.8 percent; and operating margin increased 60 basis points, to 4.6 percent. Adjusted SG&A expenses as a percent of gross profit improved 110 basis points, to 70.3 percent.

 

  • United Kingdom

    The Company's U.K. operations accounted for 22.7 percent of total revenues and 17.1 percent of total gross profit. Total U.K. revenues increased 52.6 percent (43.6 percent), to $666.9 million, driven by double-digit revenue growth across each business segment. Same Store U.K. revenues grew 13.6 percent (6.9 percent), to $493.1 million, and new vehicle units sold increased 7.2 percent, despite the industry growing only 2.4 percent. Total gross profit increased 46.9 percent (38.3 percent), to $74.8 million, with Same Store gross profit increasing 12.6 percent (6.1 percent), to $57.1 million. This growth was driven by strong improvements of 16.8 percent (10 percent) in Same Store parts and service gross profit, as well as double-digit growth in F&I and used retail gross.

    SG&A expenses as a percent of gross profit improved 20 basis points, to 83.2 percent; and operating margin decreased 10 basis points, to 1.4 percent. Adjusted Same Store SG&A expenses as a percent of gross profit improved 140 basis points, to 81.1 percent; and Same Store operating margin increased 10 basis points, to 1.7 percent.

 

  • Brazil:

    The Company's Brazilian operations were approximately breakeven during the second quarter and accounted for 3.6 percent of total revenues and 2.9 percent of total gross profit as a trucking strike in May negatively impacted results. The Company's Same Store new vehicle revenue grew 1.7 percent on a constant currency basis, with units down 5.4 percent. On a Same Store constant currency basis, total revenues grew 5.0 percent, driven by revenue growth of the aforementioned 1.7 percent in new vehicles, 16.5 percent in total used vehicles, 2.7 percent in parts & service, and 5.1 percent in F&I.

    SG&A expenses as a percent of gross profit increased 10 basis points, to 91.1 percent. Adjusted Same Store SG&A expenses as a percent of gross profit decreased 280 basis points, to 86.6 percent.

 

Share Repurchase Authorization

During the second quarter of 2018, the Company repurchased 610,752 shares at an average price per common share of $68.90, for a total of $42.1 million. In July 2018, the Company repurchased an additional 367,773 shares at an average price per common share of $67.98, for a total of $25.0 million. Year-to-date through July 25, 2018, the Company has repurchased 1,114,130 shares at an average price per common share of $68.46, for a total of $76.3 million. These repurchases represent approximately 5.5 percent of the Company's share float at the beginning of the year. As of July 25, 2018, the Company has $73.4 million remaining on its Board authorized common stock share repurchase program.

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

Corporate Development

As previously announced, the Company acquired Toyota Alpha Trevo Automóveis Ltda in western São Paulo, Brazil in April 2018, which will operate as T-Drive Toyota Alphaville, and is expected to generate approximately $45 million in annualized revenues. This acquisition provides the opportunity to both increase scale in a growing market and further expand the Company's Toyota presence with additional open points to be announced at a future date. Additionally, the Company is pleased to announce the relocation of Honda São Bernardo do Campo to a new facility. The facility is owned by the Company and will enable significant uplift in new, used and aftersales business.

In June 2018, the Company disposed of 3 franchises, which included a BMW franchise in Kentish Town in the U.K., as well as a Mercedes-Benz franchise and Sprinter franchise in Escondido, California. These three stores generated approximately $115 million in trailing-twelve-month revenues.

Year-to-date 2018, the Company has acquired a total of 12 franchises, which are expected to generate an estimated $405 million in annual revenues; and the Company has disposed of three aforementioned franchises.

Second Quarter 2018 Earnings Conference Call Details

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

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

4003183

A telephonic replay will be available following the call through August 2, 2018 by dialing:

Domestic:

1-877-344-7529

International:

1-412-317-0088

Replay ID:

10122294

ABOUT GROUP 1 AUTOMOTIVE, INC.
Group 1 owns and operates 180 automotive dealerships, 236 franchises, and 48 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
Senior Vice President, Manufacturer Relations, Financial Services and Public Affairs
Group 1 Automotive, Inc.
713-647-5770 | pdelongchamps@group1auto.com
or
Clint Woods
Pierpont Communications, Inc.
713-627-2223 | cwoods@piercom.com

Group 1 Automotive, Inc.

Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)

           
 

 Three Months Ended June 30, 

 

2018

 

2017

 

% Increase/
(Decrease)

REVENUES:

         

New vehicle retail sales

$ 1,555,570

 

$ 1,448,768

 

7.4

Used vehicle retail sales

821,853

 

685,949

 

19.8

Used vehicle wholesale sales

92,854

 

99,377

 

(6.6)

Parts and service

358,129

 

331,631

 

8.0

Finance, insurance and other, net

115,056

 

106,470

 

8.1

 Total revenues 

2,943,462

 

2,672,195

 

10.2

           

COST OF SALES:

         

New vehicle retail sales

1,478,988

 

1,373,857

 

7.7

Used vehicle retail sales

770,639

 

641,036

 

20.2

Used vehicle wholesale sales

92,613

 

99,644

 

(7.1)

Parts and service

163,059

 

152,766

 

6.7

 Total cost of sales 

2,505,299

 

2,267,303

 

10.5

           

GROSS PROFIT

438,163

 

404,892

 

8.2

           

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

308,092

 

298,568

 

3.2

           

DEPRECIATION AND AMORTIZATION EXPENSE

16,638

 

14,093

 

18.1

           

ASSET IMPAIRMENTS

4,268

 

-

 

100.0

           

OPERATING INCOME

109,165

 

92,231

 

18.4

           

OTHER EXPENSE:

         

Floorplan interest expense

(14,563)

 

(13,226)

 

10.1

Other interest expense, net

(19,414)

 

(17,315)

 

12.1

INCOME BEFORE INCOME TAXES

75,188

 

61,690

 

21.9

           

PROVISION FOR INCOME TAXES

(18,725)

 

(22,557)

 

(17.0)

           

NET INCOME 

$      56,463

 

$      39,133

 

44.3

Less: Earnings allocated to participating securities

$        1,916

 

$        1,389

 

37.9

Earnings available to diluted common shares

$      54,547

 

$      37,744

 

44.5

DILUTED EARNINGS PER SHARE

$          2.72

 

$          1.84

 

47.8

Weighted average dilutive common shares outstanding

20,046

 

20,522

 

(2.3)

Weighted average participating securities

708

 

761

 

(7.0)

Total weighted average shares outstanding

20,754

 

21,283

 

(2.5)

           
 

 Six Months Ended June 30, 

 

2018

 

2017

 

% Increase/

(Decrease)

REVENUES:

         

New vehicle retail sales

$ 3,069,160

 

$ 2,785,981

 

10.2

Used vehicle retail sales

1,602,423

 

1,346,876

 

19.0

Used vehicle wholesale sales

196,883

 

203,534

 

(3.3)

Parts and service

707,644

 

651,329

 

8.6

Finance, insurance and other, net

227,378

 

203,304

 

11.8

 Total revenues 

5,803,488

 

5,191,024

 

11.8

           

COST OF SALES:

         

New vehicle retail sales

2,917,151

 

2,641,843

 

10.4

Used vehicle retail sales

1,507,714

 

1,256,958

 

19.9

Used vehicle wholesale sales

194,987

 

203,701

 

(4.3)

Parts and service

325,710

 

300,108

 

8.5

 Total cost of sales 

4,945,562

 

4,402,610

 

12.3

           

GROSS PROFIT

857,926

 

788,414

 

8.8

           

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

632,439

 

588,347

 

7.5

           

DEPRECIATION AND AMORTIZATION EXPENSE

32,980

 

27,699

 

19.1

           

ASSET IMPAIRMENTS

4,268

 

-

 

100.0

           

OPERATING INCOME

188,239

 

172,368

 

9.2

           

OTHER EXPENSE:

         

Floorplan interest expense

(28,650)

 

(25,168)

 

13.8

Other interest expense, net

(38,234)

 

(34,314)

 

11.4

INCOME BEFORE INCOME TAXES

121,355

 

112,886

 

7.5

           

PROVISION FOR INCOME TAXES

(29,078)

 

(39,814)

 

(27.0)

           

NET INCOME

$      92,277

 

$      73,072

 

26.3

Less: Earnings allocated to participating securities

$        3,123

 

$        2,645

 

18.1

Earnings available to diluted common shares

$      89,154

 

$      70,427

 

26.6

DILUTED EARNINGS PER SHARE

$          4.42

 

$          3.42

 

29.2

Weighted average dilutive common shares outstanding

20,176

 

20,609

 

(2.1)

Weighted average participating securities

712

 

789

 

(9.8)

Total weighted average shares outstanding

20,888

 

21,398

 

(2.4)

 

Group 1 Automotive, Inc.

Consolidated Balance Sheets

(Unaudited)

(Dollars in thousands)

           
 

June 30, 2018

 

December 31,
2017

 

% Increase/
(Decrease)

 ASSETS: 

         

 CURRENT ASSETS: 

         

 Cash and cash equivalents 

$           41,575

 

$          28,787

 

44.4

 Contracts in transit and vehicle receivables, net 

249,706

 

306,433

 

(18.5)

 Accounts and notes receivable, net 

178,339

 

188,611

 

(5.4)

 Inventories, net 

1,721,249

 

1,763,293

 

(2.4)

 Prepaid expenses and other current assets 

80,957

 

42,062

 

92.5

 Total current assets 

2,271,826

 

2,329,186

 

(2.5)

 PROPERTY AND EQUIPMENT, net 

1,348,521

 

1,318,959

 

2.2

 GOODWILL AND INTANGIBLE FRANCHISE RIGHTS 

1,233,201

 

1,198,666

 

2.9

 OTHER ASSETS 

33,194

 

24,254

 

36.9

 Total assets 

$      4,886,742

 

$     4,871,065

 

0.3

           

 LIABILITIES AND STOCKHOLDERS' EQUITY: 

         

 CURRENT LIABILITIES: 

         

 Floorplan notes payable - credit facility and other 

$      1,147,892

 

$     1,240,695

 

(7.5)

 Offset account related to floorplan notes payable - credit facility 

(119,562)

 

(86,547)

 

38.1

 Floorplan notes payable - manufacturer affiliates 

404,233

 

397,183

 

1.8

 Offset account related to floorplan notes payable - manufacturer affiliates 

(24,500)

 

(22,500)

 

8.9

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

76,412

 

77,609

 

(1.5)

 Current liabilities from interest rate risk management activities 

682

 

1,996

 

(65.8)

 Accounts payable 

442,577

 

412,981

 

7.2

 Accrued expenses 

189,027

 

177,070

 

6.8

 Total current liabilities 

2,116,761

 

2,198,487

 

(3.7)

 5.00% SENIOR NOTES (principal of $550,000 at June 30, 2018 and December 31, 2017, respectively) 

542,888

 

542,063

 

0.2

 5.25% SENIOR NOTES (principal of $300,000 at June 30, 2018 and December 31, 2017, respectively) 

296,440

 

296,151

 

0.1

 ACQUISITION LINE 

39,636

 

26,988

 

46.9

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

419,424

 

405,950

 

3.3

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

59,610

 

47,032

 

26.7

 DEFERRED INCOME TAXES 

138,478

 

124,404

 

11.3

 LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES 

1,597

 

8,583

 

(81.4)

 OTHER LIABILITIES 

99,296

 

97,125

 

2.2

 STOCKHOLDERS' EQUITY: 

         

 Common stock 

255

 

255

 

-

 Additional paid-in capital 

288,492

 

291,461

 

(1.0)

 Retained earnings 

1,339,185

 

1,246,323

 

7.5

 Accumulated other comprehensive loss 

(126,358)

 

(123,226)

 

2.5

 Treasury stock 

(328,962)

 

(290,531)

 

13.2

 Total stockholders' equity 

1,172,612

 

1,124,282

 

4.3

 Total liabilities and stockholders' equity 

$      4,886,742

 

$     4,871,065

 

0.3

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

                 
   

Three Months Ended

 

Six Months Ended

   

June 30,

 

June 30,

   

2018 (%)

 

2017 (%)

 

2018 (%)

 

2017 (%)

NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:

             

Region

Geographic Market

             

United States

Texas

35.2

 

36.6

 

35.4

 

35.6

 

California

6.4

 

7.9

 

6.5

 

7.9

 

Oklahoma

5.9

 

6.5

 

5.9

 

6.5

 

Massachusetts

4.7

 

4.9

 

4.7

 

4.7

 

Georgia

4.4

 

4.8

 

4.3

 

4.7

 

Florida

2.5

 

2.5

 

2.5

 

2.5

 

Louisiana

1.9

 

1.9

 

1.8

 

2.0

 

New Hampshire

1.8

 

2.3

 

1.8

 

2.0

 

New Jersey

1.7

 

1.9

 

1.6

 

1.7

 

South Carolina

1.6

 

1.5

 

1.6

 

1.4

 

Kansas

1.3

 

1.8

 

1.3

 

1.7

 

Mississippi

1.2

 

1.3

 

1.2

 

1.4

 

Alabama

0.6

 

1.1

 

0.6

 

1.1

 

Maryland

0.5

 

0.4

 

0.5

 

0.4

 

New Mexico 

0.2

 

 

0.1

 

   

69.9

 

75.4

 

69.8

 

73.6

                 

International

United Kingdom

25.1

 

19.3

 

25.2

 

21.4

 

Brazil

5.0

 

5.3

 

5.0

 

5.0

   

100.0

 

100.0

 

100.0

 

100.0

                 

NEW VEHICLE UNIT SALES BRAND MIX:

             

Toyota/Lexus

23.9

 

25.4

 

24.0

 

24.4

Volkswagen/Audi/Porsche

13.6

 

12.3

 

13.6

 

12.4

BMW/MINI

12.2

 

13.1

 

12.4

 

13.7

Ford/Lincoln

11.0

 

11.3

 

11.2

 

12.1

Honda/Acura

8.9

 

9.6

 

9.2

 

9.3

Nissan

6.0

 

7.6

 

6.4

 

7.9

Chevrolet/GMC/Buick/Cadillac

5.7

 

5.9

 

5.8

 

6.3

Mercedes-Benz/smart/Sprinter

5.4

 

4.2

 

5.0

 

4.1

Chrysler/Dodge/Jeep/RAM

4.1

 

4.1

 

4.1

 

3.9

Hyundai/Kia

3.8

 

4.3

 

3.9

 

3.9

Jaguar/Land Rover

1.9

 

0.4

 

1.9

 

0.4

Other

3.5

 

1.8

 

2.5

 

1.6

   

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 June 30,

 

2018

 

2017

 

% Increase/
(Decrease)

REVENUES:

         

New vehicle retail sales

$ 1,146,882

 

$ 1,143,771

 

0.3

Used vehicle retail sales

592,007

 

536,193

 

10.4

Used vehicle wholesale sales

42,781

 

66,476

 

(35.6)

Total used

634,788

 

602,669

 

5.3

Parts and service

288,889

 

282,698

 

2.2

Finance, insurance and other, net

97,442

 

94,552

 

3.1

Total

$ 2,168,001

 

$ 2,123,690

 

2.1

           

GROSS MARGIN %:

         

New vehicle retail sales

4.9

 

5.0

   

Used vehicle retail sales

6.6

 

6.8

   

Used vehicle wholesale sales

3.6

 

0.4

   

Total used

6.4

 

6.1

   

Parts and service

54.2

 

53.8

   

Finance, insurance and other, net

100.0

 

100.0

   

Total

16.2

 

16.0

   
           

GROSS PROFIT:

         

New vehicle retail sales

$      56,358

 

$      57,000

 

(1.1)

Used vehicle retail sales

38,809

 

36,704

 

5.7

Used vehicle wholesale sales

1,553

 

246

 

531.3

Total used

40,362

 

36,950

 

9.2

Parts and service

156,508

 

151,971

 

3.0

Finance, insurance and other, net

97,442

 

94,552

 

3.1

Total 

$    350,670

 

$    340,473

 

3.0

           

UNITS SOLD:

         

Retail new vehicles sold

30,388

 

30,802

 

(1.3)

Retail used vehicles sold

28,484

 

25,202

 

13.0

Wholesale used vehicles sold

7,292

 

9,701

 

(24.8)

Total used

35,776

 

34,903

 

2.5

           

AVERAGE RETAIL SALES PRICE:

         

New vehicle retail

$      37,741

 

$      37,133

 

1.6

Used vehicle retail

$      20,784

 

$      21,276

 

(2.3)

           

GROSS PROFIT PER UNIT SOLD:

         

New vehicle retail sales

$        1,855

 

$        1,851

 

0.2

Used vehicle retail sales

1,362

 

1,456

 

(6.5)

Used vehicle wholesale sales

213

 

25

 

752.0

Total used

1,128

 

1,059

 

6.5

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

$        1,655

 

$        1,688

 

(2.0)

           

OTHER: 

         

SG&A expenses

$    234,279

 

$    243,844

 

(3.9)

Adjusted SG&A expenses(1)

$    246,586

 

$    243,201

 

1.4

SG&A as % revenues

10.8

 

11.5

   

Adjusted SG&A as % revenues(1)

11.4

 

11.5

   

SG&A as % gross profit

66.8

 

71.6

   

Adjusted SG&A as % gross profit(1)

70.3

 

71.4

   

Operating margin %

4.6

 

4.0

   

Adjusted operating margin %(1)

4.2

 

4.0

   

Pretax margin %

3.2

 

2.6

   

Adjusted pretax margin % (1)

2.8

 

2.7

   
           

INTEREST EXPENSE:

         

Floorplan interest expense

$    (12,809)

 

$    (12,062)

 

6.2

Floorplan assistance

11,206

 

11,452

 

(2.1)

Net floorplan expense

$      (1,603)

 

$         (610)

 

162.8

Other interest expense, net

$    (17,332)

 

$    (16,572)

 

4.6

           
 

Six Months Ended June 30,

 

2018

 

2017

 

% Increase/
(Decrease)

REVENUES:

         

New vehicle retail sales

$ 2,236,835

 

$ 2,162,020

 

3.5

Used vehicle retail sales

1,155,837

 

1,058,140

 

9.2

Used vehicle wholesale sales

96,783

 

137,021

 

(29.4)

Total used

1,252,620

 

1,195,161

 

4.8

Parts and service

573,403

 

553,857

 

3.5

Finance, insurance and other, net

193,629

 

180,371

 

7.4

Total 

$ 4,256,487

 

$ 4,091,409

 

4.0

           

GROSS MARGIN %:

         

New vehicle retail sales

4.9

 

5.0

   

Used vehicle retail sales

6.3

 

7.1

   

Used vehicle wholesale sales

3.1

 

(0.1)

   

Total used

6.0

 

6.2

   

Parts and service

53.7

 

53.8

   

Finance, insurance and other, net

100.0

 

100.0

   

Total

16.1

 

16.2

   
           

GROSS PROFIT:

         

New vehicle retail sales

$    109,493

 

$    108,209

 

1.2

Used vehicle retail sales

72,294

 

74,636

 

(3.1)

Used vehicle wholesale sales

2,987

 

(116)

 

2675.0

Total used

75,281

 

74,520

 

1.0

Parts and service

307,952

 

297,969

 

3.4

Finance, insurance and other, net

193,629

 

180,371

 

7.4

Total 

$    686,355

 

$    661,069

 

3.8

           

UNITS SOLD:

         

Retail new vehicles sold

59,061

 

58,300

 

1.3

Retail used vehicles sold

55,794

 

50,131

 

11.3

Wholesale used vehicles sold

16,675

 

19,682

 

(15.3)

Total used

72,469

 

69,813

 

3.8

           

AVERAGE RETAIL SALES PRICE:

         

New vehicle retail

$      37,873

 

$      37,084

 

2.1

Used vehicle retail

$      20,716

 

$      21,107

 

(1.9)

           

GROSS PROFIT PER UNIT SOLD:

         

New vehicle retail sales

$        1,854

 

$        1,856

 

(0.1)

Used vehicle retail sales

1,296

 

1,489

 

(13.0)

Used vehicle wholesale sales

179

 

(6)

 

3083.3

Total used

1,039

 

1,067

 

(2.6)

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

$        1,686

 

$        1,663

 

1.4

           

OTHER: 

         

SG&A expenses

$    487,220

 

$    480,117

 

1.5

Adjusted SG&A expenses(1)

$    499,527

 

$    481,307

 

3.8

SG&A as % revenues

11.4

 

11.7

   

Adjusted SG&A as % revenues (1)

11.7

 

11.8

   

SG&A as % gross profit

71.0

 

72.6

   

Adjusted SG&A as % gross profit (1)

72.8

 

72.8

   

Operating margin %

4.0

 

3.8

   

Adjusted operating margin %(1)

3.8

 

3.8

   

Pretax margin %

2.6

 

2.5

   

Adjusted pretax margin %(1)

2.4

 

2.5

   
           

INTEREST EXPENSE:

         

Floorplan interest expense

$    (25,146)

 

$    (22,940)

 

9.6

Floorplan assistance

21,956

 

21,736

 

1.0

Net floorplan expense

$      (3,190)

 

$      (1,204)

 

165.0

Other interest expense, net

$    (34,348)

 

$    (32,844)

 

4.6

           

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

 

Group 1 Automotive, Inc.

Additional Information - U.K.

(Unaudited)

(Dollars in thousands, except per unit amounts)

               
 

Three Months Ended June 30,

 

2018

 

2017

 

% Increase/
(Decrease)

 

Constant Currency (1)
% Increase/ (Decrease)

REVENUES:

             

New vehicle retail sales

$       338,635

 

$   231,415

 

46.3

 

37.7

Used vehicle retail sales

208,108

 

128,406

 

62.1

 

52.4

Used vehicle wholesale sales

46,527

 

30,448

 

52.8

 

43.7

Total used

254,635

 

158,854

 

60.3

 

50.7

Parts and service

57,996

 

37,050

 

56.5

 

47.3

Finance, insurance and other, net

15,617

 

9,784

 

59.6

 

50.7

Total

$       666,883

 

$   437,103

 

52.6

 

43.6

               

GROSS MARGIN %:

             

New vehicle retail sales

4.7

 

5.9

       

Used vehicle retail sales

5.3

 

5.2

       

Used vehicle wholesale sales

(3.0)

 

(2.3)

       

Total used

3.8

 

3.8

       

Parts and service

57.9

 

57.9

       

Finance, insurance and other, net

100.0

 

100.0

       

Total

11.2

 

11.7

       
               

GROSS PROFIT:

             

New vehicle retail sales

$         15,907

 

$     13,744

 

15.7

 

9.5

Used vehicle retail sales

11,103

 

6,679

 

66.2

 

55.2

Used vehicle wholesale sales

(1,378)

 

(715)

 

(92.7)

 

(82.7)

Total used

9,725

 

5,964

 

63.1

 

51.9

Parts and service

33,555

 

21,440

 

56.5

 

47.4

Finance, insurance and other, net

15,617

 

9,784

 

59.6

 

50.7

Total 

$         74,804

 

$     50,932

 

46.9

 

38.3

               

UNITS SOLD:

             

Retail new vehicles sold

10,914

 

7,894

 

38.3

   

Retail used vehicles sold

8,501

 

5,813

 

46.2

   

Wholesale used vehicles sold

5,955

 

4,137

 

43.9

   

Total used

14,456

 

9,950

 

45.3

   
               

AVERAGE RETAIL SALES PRICE:

             

New vehicle retail

$         31,028

 

$     29,315

 

5.8

 

(0.4)

Used vehicle retail

$         24,480

 

$     22,089

 

10.8

 

4.2

               

GROSS PROFIT PER UNIT SOLD:

             

New vehicle retail sales

$           1,457

 

$       1,741

 

(16.3)

 

(20.8)

Used vehicle retail sales

1,306

 

1,149

 

13.7

 

6.1

Used vehicle wholesale sales

(231)

 

(173)

 

(33.5)

 

(26.9)

Total used

673

 

599

 

12.4

 

4.5

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

$              804

 

$          714

 

12.6

 

6.4

               

OTHER: 

             

SG&A expenses

$         62,258

 

$     42,456

 

46.6

 

37.8

Adjusted SG&A expenses(1)

$         62,258

 

$     42,168

 

47.6

 

38.7

SG&A as % revenues

9.3

 

9.7

       

Adjusted SG&A as % revenues (1)

9.3

 

9.6

       

SG&A as % gross profit

83.2

 

83.4

       

Adjusted SG&A as % gross profit (1)

83.2

 

82.8

       

Operating margin %

1.4

 

1.5

       

Adjusted operating margin % (1)

1.4

 

1.6

       

Pretax margin %

0.9

 

1.1

       

Adjusted pretax margin % (1)

0.9

 

1.2

       
               

INTEREST EXPENSE:

             

Floorplan interest expense

$         (1,617)

 

$      (1,053)

 

53.6

 

44.3

Floorplan assistance

240

 

220

 

9.1

 

2.8

Net floorplan expense

$         (1,377)

 

$         (833)

 

65.3

 

55.2

Other interest expense, net

$         (1,790)

 

$         (684)

 

161.7

 

144.4

               
               
 

Six Months Ended June 30,

 

2018

 

2017

 

% Increase/

(Decrease)

 

Constant Currency (1)
% Increase/ (Decrease)

REVENUES:

             

New vehicle retail sales

$       693,039

 

$   490,055

 

41.4

 

29.1

Used vehicle retail sales

400,657

 

243,775

 

64.4

 

50.6

Used vehicle wholesale sales

92,712

 

60,957

 

52.1

 

39.1

Total used

493,369

 

304,732

 

61.9

 

48.3

Parts and service

111,137

 

73,831

 

50.5

 

37.8

Finance, insurance and other, net

29,880

 

18,812

 

58.8

 

45.6

Total 

$    1,327,425

 

$   887,430

 

49.6

 

36.7

               

GROSS MARGIN %:

             

New vehicle retail sales

5.0

 

5.7

       

Used vehicle retail sales

4.9

 

5.0

       

Used vehicle wholesale sales

(1.4)

 

(0.8)

       

Total used

3.7

 

3.8

       

Parts and service

57.2

 

57.8

       

Finance, insurance and other, net

100.0

 

100.0

       

Total

11.0

 

11.4

       
               

GROSS PROFIT:

             

New vehicle retail sales

$         34,418

 

$     28,145

 

22.3

 

11.8

Used vehicle retail sales

19,663

 

12,108

 

62.4

 

48.4

Used vehicle wholesale sales

(1,308)

 

(504)

 

(159.5)

 

(150.8)

Total used

18,355

 

11,604

 

58.2

 

44.0

Parts and service

63,602

 

42,665

 

49.1

 

36.6

Finance, insurance and other, net

29,880

 

18,812

 

58.8

 

45.6

Total 

$       146,255

 

$   101,226

 

44.5

 

32.2

               

UNITS SOLD:

             

Retail new vehicles sold

21,364

 

16,912

 

26.3

   

Retail used vehicles sold

16,336

 

11,424

 

43.0

   

Wholesale used vehicles sold

11,542

 

8,306

 

39.0

   

Total used

27,878

 

19,730

 

41.3

   
               

AVERAGE RETAIL SALES PRICE:

             

New vehicle retail

$         32,440

 

$     28,977

 

12.0

 

2.2

Used vehicle retail

$         24,526

 

$     21,339

 

14.9

 

5.3

               

GROSS PROFIT PER UNIT SOLD:

             

New vehicle retail sales

$           1,611

 

$       1,664

 

(3.2)

 

(11.5)

Used vehicle retail sales

1,204

 

1,060

 

13.6

 

3.8

Used vehicle wholesale sales

(113)

 

(61)

 

(85.2)

 

(80.5)

Total used

658

 

588

 

11.9

 

1.9

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

$              793

 

$          664

 

19.4

 

9.5

               

OTHER: 

             

SG&A expenses

$       121,854

 

$     84,080

 

44.9

 

32.6

Adjusted SG&A expenses(1)

$       121,854

 

$     83,792

 

45.4

 

33.0

SG&A as % revenues

9.2

 

9.5

       

Adjusted SG&A as % revenues (1)

9.2

 

9.4

       

SG&A as % gross profit

83.3

 

83.1

       

Adjusted SG&A as % gross profit (1)

83.3

 

82.8

       

Operating margin %

1.4

 

1.5

       

Adjusted operating margin % (1)

1.4

 

1.6

       

Pretax margin %

0.9

 

1.2

       

Adjusted pretax margin % (1)

0.9

 

1.2

       
               

INTEREST EXPENSE:

             

Floorplan interest expense

$         (3,131)

 

$      (2,087)

 

50.0

 

37.3

Floorplan assistance

526

 

449

 

17.1

 

6.8

Net floorplan expense

$         (2,605)

 

$      (1,638)

 

59.0

 

45.6

Other interest expense, net

$         (3,322)

 

$      (1,265)

 

162.6

 

140.3

           

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

 

Group 1 Automotive, Inc.

Additional Information - Brazil

(Unaudited)

(Dollars in thousands, except per unit amounts)

               
 

Three Months Ended June 30,

 

2018

 

2017

 

% Increase/
(Decrease)

 

Constant Currency (1)
% Increase/ (Decrease)

REVENUES:

             

New vehicle retail sales

$   70,053

 

$   73,582

 

(4.8)

 

6.2

Used vehicle retail sales

21,738

 

21,350

 

1.8

 

13.6

Used vehicle wholesale sales

3,546

 

2,453

 

44.6

 

63.5

Total used

25,284

 

23,803

 

6.2

 

18.8

Parts and service

11,244

 

11,883

 

(5.4)

 

5.8

Finance, insurance and other, net

1,997

 

2,134

 

(6.4)

 

4.6

Total

$ 108,578

 

$ 111,402

 

(2.5)

 

8.8

               

GROSS MARGIN %:

             

New vehicle retail sales

6.2

 

5.7

       

Used vehicle retail sales

6.0

 

7.2

       

Used vehicle wholesale sales

1.9

 

8.2

       

Total used

5.4

 

7.3

       

Parts and service

44.5

 

45.9

       

Finance, insurance and other, net

100.0

 

100.0

       

Total

11.7

 

12.1

       
               

GROSS PROFIT:

             

New vehicle retail sales

$     4,317

 

$     4,167

 

3.6

 

15.6

Used vehicle retail sales

1,302

 

1,530

 

(14.9)

 

(4.9)

Used vehicle wholesale sales

66

 

202

 

(67.3)

 

(66.7)

Total used

1,368

 

1,732

 

(21.0)

 

(12.2)

Parts and service

5,007

 

5,454

 

(8.2)

 

2.6

Finance, insurance and other, net

1,997

 

2,134

 

(6.4)

 

4.6

Total 

$   12,689

 

$   13,487

 

(5.9)

 

5.0

               

UNITS SOLD:

             

Retail new vehicles sold

2,169

 

2,180

 

(0.5)

   

Retail used vehicles sold

1,023

 

988

 

3.5

   

Wholesale used vehicles sold

322

 

237

 

35.9

   

Total used

1,345

 

1,225

 

9.8

   
               

AVERAGE RETAIL SALES PRICE:

             

New vehicle retail

$   32,297

 

$   33,753

 

(4.3)

 

6.8

Used vehicle retail

$   21,249

 

$   21,609

 

(1.7)

 

9.7

               

GROSS PROFIT PER UNIT SOLD:

             

New vehicle retail sales

$     1,990

 

$     1,911

 

4.1

 

16.1

Used vehicle retail sales

1,273

 

1,549

 

(17.8)

 

(8.2)

Used vehicle wholesale sales

205

 

852

 

(75.9)

 

(75.5)

Total used

1,017

 

1,414

 

(28.1)

 

(20.0)

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

$        626

 

$        674

 

(7.1)

 

3.8

               

OTHER: 

             

SG&A expenses

$   11,555

 

$   12,268

 

(5.8)

 

5.3

Adjusted SG&A expenses(1)

$   11,005

 

$   12,268

 

(10.3)

 

0.1

SG&A as % revenues

10.6

 

11.0

       

Adjusted SG&A as % revenues (1)

10.1

 

11.0

       

SG&A as % gross profit

91.1

 

91.0

       

Adjusted SG&A as % gross profit (1)

86.7

 

91.0

       

Operating margin %

0.6

 

0.8

       

Adjusted operating margin % (1)

1.1

 

0.8

       

Pretax margin %

0.2

 

0.6

       

Adjusted pretax margin % (1)

0.7

 

0.6

       
               

INTEREST EXPENSE:

             

Floorplan interest expense

$      (137)

 

$      (111)

 

23.4

 

37.1

Floorplan assistance

 

 

-

 

-

Net floorplan expense

$      (137)

 

$      (111)

 

23.4

 

37.1

Other interest expense, net

$      (292)

 

$        (59)

 

394.9

 

442.1

               
               
 

Six Months Ended June 30,

 

2018

 

2017

 

% Increase/
(Decrease)

 

Constant Currency (1)
% Increase/ (Decrease)

REVENUES:

             

New vehicle retail sales

$ 139,286

 

$ 133,906

 

4.0

 

11.8

Used vehicle retail sales

45,929

 

44,961

 

2.2

 

9.6

Used vehicle wholesale sales

7,388

 

5,556

 

33.0

 

44.1

Total used

53,317

 

50,517

 

5.5

 

13.4

Parts and service

23,104

 

23,641

 

(2.3)

 

5.0

Finance, insurance and other, net

3,869

 

4,121

 

(6.1)

 

1.3

Total 

$ 219,576

 

$ 212,185

 

3.5

 

11.2

               

GROSS MARGIN %:

             

New vehicle retail sales

5.8

 

5.8

       

Used vehicle retail sales

6.0

 

7.1

       

Used vehicle wholesale sales

2.9

 

8.2

       

Total used

5.6

 

7.2

       

Parts and service

44.9

 

44.8

       

Finance, insurance and other, net

100.0

 

100.0

       

Total

11.5

 

12.3

       
               

GROSS PROFIT:

             

New vehicle retail sales

$     8,098

 

$     7,784

 

4.0

 

12.2

Used vehicle retail sales

2,752

 

3,174

 

(13.3)

 

(7.0)

Used vehicle wholesale sales

217

 

453

 

(52.1)

 

(50.7)

Total used

2,969

 

3,627

 

(18.1)

 

(12.4)

Parts and service

10,380

 

10,587

 

(2.0)

 

5.2

Finance, insurance and other, net

3,869

 

4,121

 

(6.1)

 

1.3

Total 

$   25,316

 

$   26,119

 

(3.1)

 

4.2

               

UNITS SOLD:

             

Retail new vehicles sold

4,236

 

3,954

 

7.1

   

Retail used vehicles sold

2,094

 

2,014

 

4.0

   

Wholesale used vehicles sold

679

 

616

 

10.2

   

Total used

2,773

 

2,630

 

5.4

   
               

AVERAGE RETAIL SALES PRICE:

             

New vehicle retail

$   32,881

 

$   33,866

 

(2.9)

 

4.4

Used vehicle retail

$   21,934

 

$   22,324

 

(1.7)

 

5.4

               

GROSS PROFIT PER UNIT SOLD:

             

New vehicle retail sales

$     1,912

 

$     1,969

 

(2.9)

 

4.7

Used vehicle retail sales

1,314

 

1,576

 

(16.6)

 

(10.5)

Used vehicle wholesale sales

320

 

735

 

(56.5)

 

(55.3)

Total used

1,071

 

1,379

 

(22.3)

 

(16.9)

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

$        611

 

$        691

 

(11.6)

 

(4.5)

               

OTHER: 

             

SG&A expenses

$   23,365

 

$   24,150

 

(3.3)

 

4.0

Adjusted SG&A expenses(1)

$   22,815

 

$   24,150

 

(5.5)

 

1.3

SG&A as % revenues

10.6

 

11.4

       

Adjusted SG&A as % revenues (1)

10.4

 

11.4

       

SG&A as % gross profit

92.3

 

92.5

       

Adjusted SG&A as % gross profit (1)

90.1

 

92.5

       

Operating margin %

0.5

 

0.6

       

Adjusted operating margin % (1)

0.7

 

0.6

       

Pretax margin %

0.1

 

0.4

       

Adjusted pretax margin % (1)

0.3

 

0.4

       
               

INTEREST EXPENSE:

             

Floorplan interest expense

$      (373)

 

$      (141)

 

164.5

 

178.2

Floorplan assistance

 

 

-

 

-

Net floorplan expense

$      (373)

 

$      (141)

 

164.5

 

178.2

Other interest expense, net

$      (564)

 

$      (205)

 

175.1

 

193.7

           

(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 June 30,

 

2018

 

2017

 

% Increase/

(Decrease)

 

Constant Currency % (1)
Increase/ (Decrease)

REVENUES:

             

New vehicle retail sales

$     1,555,570

 

$     1,448,768

 

7.4

 

6.6

Used vehicle retail sales

821,853

 

685,949

 

19.8

 

18.4

Used vehicle wholesale sales

92,854

 

99,377

 

(6.6)

 

(8.9)

Total used

914,707

 

785,326

 

16.5

 

14.9

Parts and service

358,129

 

331,631

 

8.0

 

7.4

Finance, insurance and other, net

115,056

 

106,470

 

8.1

 

7.5

Total

$     2,943,462

 

$     2,672,195

 

10.2

 

9.2

               

GROSS MARGIN %:

             

New vehicle retail sales

4.9

 

5.2

       

Used vehicle retail sales

6.2

 

6.5

       

Used vehicle wholesale sales

0.3

 

(0.3)

       

Total used

5.6

 

5.7

       

Parts and service

54.5

 

53.9

       

Finance, insurance and other, net

100.0

 

100.0

       

Total

14.9

 

15.2

       
               

GROSS PROFIT:

             

New vehicle retail sales

$          76,582

 

$          74,911

 

2.2

 

1.8

Used vehicle retail sales

51,214

 

44,913

 

14.0

 

12.7

Used vehicle wholesale sales

241

 

(267)

 

190.3

 

217.3

Total used

51,455

 

44,646

 

15.3

 

14.1

Parts and service

195,070

 

178,865

 

9.1

 

8.3

Finance, insurance and other, net

115,056

 

106,470

 

8.1

 

7.5

Total 

$        438,163

 

$        404,892

 

8.2

 

7.5

               

UNITS SOLD:

             

Retail new vehicles sold

43,471

 

40,876

 

6.3

   

Retail used vehicles sold

38,008

 

32,003

 

18.8

   

Wholesale used vehicles sold

13,569

 

14,075

 

(3.6)

   

Total used

51,577

 

46,078

 

11.9

   
               

AVERAGE RETAIL SALES PRICE:

             

New vehicle retail

$          35,784

 

$          35,443

 

1.0

 

0.2

Used vehicle retail

$          21,623

 

$          21,434

 

0.9

 

(0.3)

               

GROSS PROFIT PER UNIT SOLD:

             

New vehicle retail sales

$            1,762

 

$            1,833

 

(3.9)

 

(4.3)

Used vehicle retail sales

1,347

 

1,403

 

(4.0)

 

(5.1)

Used vehicle wholesale sales

18

 

(19)

 

194.7

 

221.7

Total used

998

 

969

 

3.0

 

1.9

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

$            1,412

 

$            1,461

 

(3.4)

 

(3.9)

               

OTHER: 

             

SG&A expenses

$        308,092

 

$        298,568

 

3.2

 

2.4

Adjusted SG&A expenses (1)

$        319,849

 

$        297,637

 

7.5

 

6.6

SG&A as % revenues

10.5

 

11.2

       

Adjusted SG&A as % revenues (1)

10.9

 

11.1

       

SG&A as % gross profit

70.3

 

73.7

       

Adjusted SG&A as % gross profit (1)

73.0

 

73.5

       

Operating margin %

3.7

 

3.5

       

Adjusted operating margin % (1)

3.5

 

3.5

       

Pretax margin %

2.6

 

2.3

       

Adjusted pretax margin % (1)

2.3

 

2.3

       
               

INTEREST EXPENSE:

             

Floorplan interest expense

$        (14,563)

 

$        (13,226)

 

10.1

 

9.5

Floorplan assistance

11,447

 

11,672

 

(1.9)

 

(2.1)

Net floorplan expense

$          (3,116)

 

$          (1,554)

 

100.5

 

96.2

Other interest expense, net

$        (19,414)

 

$        (17,315)

 

12.1

 

11.6

               
               
 

Six Months Ended June 30,

 

2018

 

2017

 

% Increase/
(Decrease)

 

Constant Currency % (1)
Increase/ (Decrease)

REVENUES:

             

New vehicle retail sales

$     3,069,160

 

$     2,785,981

 

10.2

 

8.4

Used vehicle retail sales

1,602,423

 

1,346,876

 

19.0

 

16.7

Used vehicle wholesale sales

196,883

 

203,534

 

(3.3)

 

(6.8)

Total used

1,799,306

 

1,550,410

 

16.1

 

13.6

Parts and service

707,644

 

651,329

 

8.6

 

7.5

Finance, insurance and other, net

227,378

 

203,304

 

11.8

 

10.8

Total 

$     5,803,488

 

$     5,191,024

 

11.8

 

9.9

               

GROSS MARGIN %:

             

New vehicle retail sales

5.0

 

5.2

       

Used vehicle retail sales

5.9

 

6.7

       

Used vehicle wholesale sales

1.0

 

(0.1)

       

Total used

5.4

 

5.8

       

Parts and service

54.0

 

53.9

       

Finance, insurance and other, net

100.0

 

100.0

       

Total

14.8

 

15.2

       
               

GROSS PROFIT:

             

New vehicle retail sales

$        152,009

 

$        144,138

 

5.5

 

3.9

Used vehicle retail sales

94,709

 

89,918

 

5.3

 

3.7

Used vehicle wholesale sales

1,896

 

(167)

 

1235.3

 

1266.5

Total used

96,605

 

89,751

 

7.6

 

6.0

Parts and service

381,934

 

351,221

 

8.7

 

7.4

Finance, insurance and other, net

227,378

 

203,304

 

11.8

 

10.8

Total 

$        857,926

 

$        788,414

 

8.8

 

7.5

               

UNITS SOLD:

             

Retail new vehicles sold

84,661

 

79,166

 

6.9

   

Retail used vehicles sold

74,224

 

63,569

 

16.8

   

Wholesale used vehicles sold

28,896

 

28,604

 

1.0

   

Total used

103,120

 

92,173

 

11.9

   
               

AVERAGE RETAIL SALES PRICE:

             

New vehicle retail

$          36,252

 

$          35,192

 

3.0

 

1.3

Used vehicle retail

$          21,589

 

$          21,188

 

1.9

 

-

               

GROSS PROFIT PER UNIT SOLD:

             

New vehicle retail sales

$            1,796

 

$            1,821

 

(1.4)

 

(2.9)

Used vehicle retail sales

1,276

 

1,414

 

(9.8)

 

(11.2)

Used vehicle wholesale sales

66

 

(6)

 

1200.0

 

1254.7

Total used

937

 

974

 

(3.8)

 

(5.2)

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

$            1,431

 

$            1,424

 

0.5

 

(0.5)

               

OTHER: 

             

SG&A expenses

$        632,439

 

$        588,347

 

7.5

 

6.0

Adjusted SG&A expenses(1)

$        644,196

 

$        589,249

 

9.3

 

7.8

SG&A as % revenues

10.9

 

11.3

       

Adjusted SG&A as % revenues (1)

11.1

 

11.4

       

SG&A as % gross profit

73.7

 

74.6

       

Adjusted SG&A as % gross profit(1)

75.1

 

74.7

       

Operating margin %

3.2

 

3.3

       

Adjusted operating margin % (1)

3.1

 

3.3

       

Pretax margin %

2.1

 

2.2

       

Adjusted pretax margin %(1)

2.0

 

2.2

       
               

INTEREST EXPENSE:

             

Floorplan interest expense

$        (28,650)

 

$        (25,168)

 

13.8

 

12.9

Floorplan assistance

22,482

 

22,185

 

1.3

 

1.1

Net floorplan expense

$          (6,168)

 

$          (2,983)

 

106.8

 

100.0

Other interest expense, net

$        (38,234)

 

$        (34,314)

 

11.4

 

10.7

             

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

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)

           
 

Three Months Ended June 30,

 

2018

 

2017

 

% Increase/
(Decrease)

REVENUES:

         

New vehicle retail sales

$ 1,121,138

 

$ 1,139,798

 

(1.6)

Used vehicle retail sales

579,816

 

534,934

 

8.4

Used vehicle wholesale sales

41,158

 

66,187

 

(37.8)

Total used

620,974

 

601,121

 

3.3

Parts and service

284,494

 

281,555

 

1.0

Finance, insurance and other, net

95,298

 

93,933

 

1.5

Total 

$ 2,121,904

 

$ 2,116,407

 

0.3

           

GROSS MARGIN %:

         

New vehicle retail sales

4.9

 

5.0

   

Used vehicle retail sales

6.5

 

6.9

   

Used vehicle wholesale sales

3.8

 

0.4

   

Total used

6.3

 

6.1

   

Parts and service

54.2

 

53.8

   

Finance, insurance and other, net

100.0

 

100.0

   

Total

16.2

 

16.0

   
           

GROSS PROFIT:

         

New vehicle retail sales

$      54,648

 

$      56,783

 

(3.8)

Used vehicle retail sales

37,716

 

36,649

 

2.9

Used vehicle wholesale sales

1,561

 

254

 

514.6

Total used

39,277

 

36,903

 

6.4

Parts and service

154,088

 

151,348

 

1.8

Finance, insurance and other, net

95,298

 

93,933

 

1.5

Total 

$    343,311

 

$    338,967

 

1.3

           

UNITS SOLD:

         

Retail new vehicles sold

29,830

 

30,730

 

(2.9)

Retail used vehicles sold

27,971

 

25,169

 

11.1

Wholesale used vehicles sold

7,133

 

9,681

 

(26.3)

Total used

35,104

 

34,850

 

0.7

           

AVERAGE RETAIL SALES PRICE:

         

New vehicle retail

$      37,584

 

$      37,091

 

1.3

Used vehicle retail

$      20,729

 

$      21,254

 

(2.5)

           

GROSS PROFIT PER UNIT SOLD:

         

New vehicle retail sales

$        1,832

 

$        1,848

 

(0.9)

Used vehicle retail sales

1,348

 

1,456

 

(7.4)

Used vehicle wholesale sales

219

 

26

 

742.3

Total used

1,119

 

1,059

 

5.7

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

$        1,649

 

$        1,680

 

(1.8)

           

OTHER: 

         

SG&A expenses

$    249,033

 

$    242,559

 

2.7

Adjusted SG&A expenses(2)

$    241,221

 

$    241,916

 

(0.3)

SG&A as % revenues

11.7

 

11.5

   

Adjusted SG&A as % revenues (2)

11.4

 

11.4

   

SG&A as % gross profit

72.5

 

71.6

   

Adjusted SG&A as % gross profit (2)

70.3

 

71.4

   

Operating margin %

3.7

 

4.0

   

Adjusted operating margin % (2)

4.2

 

4.0

   
           
 

Six Months Ended June 30,

 

2018

 

2017

 

% Increase/
(Decrease)

REVENUES:

         

New vehicle retail sales

$ 2,189,357

 

$ 2,158,047

 

1.5

Used vehicle retail sales

1,133,549

 

1,056,879

 

7.3

Used vehicle wholesale sales

93,938

 

136,732

 

(31.3)

Total used

1,227,487

 

1,193,611

 

2.8

Parts and service

564,897

 

552,714

 

2.2

Finance, insurance and other, net

189,450

 

179,323

 

5.6

Total 

$ 4,171,191

 

$ 4,083,695

 

2.1

           

GROSS MARGIN %:

         

New vehicle retail sales

4.9

 

5.0

   

Used vehicle retail sales

6.2

 

7.1

   

Used vehicle wholesale sales

3.2

 

(0.1)

   

Total used

6.0

 

6.2

   

Parts and service

53.6

 

53.8

   

Finance, insurance and other, net

100.0

 

100.0

   

Total

16.1

 

16.1

   
           

GROSS PROFIT:

         

New vehicle retail sales

$    106,718

 

$    107,991

 

(1.2)

Used vehicle retail sales

70,744

 

74,579

 

(5.1)

Used vehicle wholesale sales

2,986

 

(90)

 

3,417.8

Total used

73,730

 

74,489

 

(1.0)

Parts and service

302,998

 

297,346

 

1.9

Finance, insurance and other, net

189,450

 

179,323

 

5.6

Total 

$    672,896

 

$    659,149

 

2.1

           

UNITS SOLD:

         

Retail new vehicles sold

57,980

 

58,228

 

(0.4)

Retail used vehicles sold

54,829

 

50,098

 

9.4

Wholesale used vehicles sold

16,356

 

19,662

 

(16.8)

Total used

71,185

 

69,760

 

2.0

           

AVERAGE RETAIL SALES PRICE:

         

New vehicle retail

$      37,761

 

$      37,062

 

1.9

Used vehicle retail

$      20,674

 

$      21,096

 

(2.0)

           

GROSS PROFIT PER UNIT SOLD:

         

New vehicle retail sales

$        1,841

 

$        1,855

 

(0.8)

Used vehicle retail sales

1,290

 

1,489

 

(13.4)

Used vehicle wholesale sales

183

 

(5)

 

3,760.0

Total used

1,036

 

1,068

 

(3.0)

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

$        1,679

 

$        1,655

 

1.5

           

OTHER: 

         

SG&A expenses

$    496,645

 

$    478,610

 

3.8

Adjusted SG&A expenses(2)

$    488,833

 

$    479,800

 

1.9

SG&A as % revenues

11.9

 

11.7

   

Adjusted SG&A as % revenues (2)

11.7

 

11.7

   

SG&A as % gross profit

73.8

 

72.6

   

Adjusted SG&A as % gross profit (2)

72.6

 

72.8

   

Operating margin %

3.5

 

3.9

   

Adjusted operating margin % (2)

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

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)

               
 

Three Months Ended June 30,

 

2018

 

2017

 

% Increase/

(Decrease)

 

Constant Currency (2)
% Increase/ (Decrease)

REVENUES:

             

New vehicle retail sales

$ 254,118

 

$ 229,878

 

10.5

 

4.0

Used vehicle retail sales

149,344

 

127,475

 

17.2

 

10.2

Used vehicle wholesale sales

34,939

 

30,247

 

15.5

 

8.7

Total used

184,283

 

157,722

 

16.8

 

9.9

Parts and service

42,786

 

36,808

 

16.2

 

9.4

Finance, insurance and other, net

11,895

 

9,734

 

22.2

 

15.3

Total 

$ 493,082

 

$ 434,142

 

13.6

 

6.9

               

GROSS MARGIN %:

             

New vehicle retail sales

5.2

 

6.0

       

Used vehicle retail sales

5.3

 

5.2

       

Used vehicle wholesale sales

(2.7)

 

(2.3)

       

Total used

3.8

 

3.8

       

Parts and service

58.2

 

57.9

       

Finance, insurance and other, net

100.0

 

100.0

       

Total

11.6

 

11.7

       
               

GROSS PROFIT:

             

New vehicle retail sales

$   13,251

 

$   13,702

 

(3.3)

 

(8.5)

Used vehicle retail sales

7,974

 

6,636

 

20.2

 

12.3

Used vehicle wholesale sales

(928)

 

(696)

 

(33.3)

 

(25.9)

Total used

7,046

 

5,940

 

18.6

 

10.7

Parts and service

24,904

 

21,316

 

16.8

 

10.0

Finance, insurance and other, net

11,895

 

9,734

 

22.2

 

15.3

Total 

$   57,096

 

$   50,692

 

12.6

 

6.1

               

UNITS SOLD:

             

Retail new vehicles sold

8,374

 

7,812

 

7.2

   

Retail used vehicles sold

5,998

 

5,758

 

4.2

   

Wholesale used vehicles sold

4,487

 

4,104

 

9.3

   

Total used

10,485

 

9,862

 

6.3

   
               

AVERAGE RETAIL SALES PRICE:

             

New vehicle retail

$   30,346

 

$   29,426

 

3.1

 

(2.9)

Used vehicle retail

$   24,899

 

$   22,139

 

12.5

 

5.8

               

GROSS PROFIT PER UNIT SOLD:

             

New vehicle retail sales

$     1,582

 

$     1,754

 

(9.8)

 

(14.7)

Used vehicle retail sales

1,329

 

1,152

 

15.4

 

7.8

Used vehicle wholesale sales

(207)

 

(170)

 

(21.8)

 

(15.2)

Total used

672

 

602

 

11.6

 

4.1

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

$        828

 

$        717

 

15.5

 

8.9

               

OTHER: 

             

SG&A expenses

$   46,319

 

$   42,087

 

10.1

 

3.4

Adjusted SG&A expenses(2)

$   46,319

 

$   41,799

 

10.8

 

4.1

SG&A as % revenues

9.4

 

9.7

       

Adjusted SG&A as % revenues (2)

9.4

 

9.6

       

SG&A as % gross profit

81.1

 

83.0

       

Adjusted SG&A as % gross profit (2)

81.1

 

82.5

       

Operating margin %

1.7

 

1.6

       

Adjusted operating margin % (2)

1.7

 

1.6

       
               
 

Six Months Ended June 30,

 

2018

 

2017

 

% Increase/
(Decrease)

 

Constant Currency (2)
% Increase/ (Decrease)

REVENUES:

             

New vehicle retail sales

$ 524,178

 

$ 486,582

 

7.7

 

(1.7)

Used vehicle retail sales

295,584

 

242,281

 

22.0

 

11.7

Used vehicle wholesale sales

71,012

 

60,662

 

17.1

 

7.1

Total used

366,596

 

302,943

 

21.0

 

10.8

Parts and service

84,011

 

73,254

 

14.7

 

5.0

Finance, insurance and other, net

22,530

 

18,707

 

20.4

 

10.4

Total 

$ 997,315

 

$ 881,486

 

13.1

 

3.4

               

GROSS MARGIN %:

             

New vehicle retail sales

5.3

 

5.8

       

Used vehicle retail sales

5.0

 

5.0

       

Used vehicle wholesale sales

(1.4)

 

(0.8)

       

Total used

3.7

 

3.8

       

Parts and service

57.6

 

57.9

       

Finance, insurance and other, net

100.0

 

100.0

       

Total

11.3

 

11.4

       
               

GROSS PROFIT:

             

New vehicle retail sales

$   27,835

 

$   27,999

 

(0.6)

 

(9.1)

Used vehicle retail sales

14,645

 

12,019

 

21.8

 

11.4

Used vehicle wholesale sales

(978)

 

(484)

 

(102.1)

 

(94.1)

Total used

13,667

 

11,535

 

18.5

 

7.9

Parts and service

48,409

 

42,389

 

14.2

 

4.6

Finance, insurance and other, net

22,530

 

18,707

 

20.4

 

10.4

Total 

$ 112,441

 

$ 100,630

 

11.7

 

2.3

               

UNITS SOLD:

             

Retail new vehicles sold

16,386

 

16,716

 

(2.0)

   

Retail used vehicles sold

11,862

 

11,336

 

4.6

   

Wholesale used vehicles sold

8,820

 

8,246

 

7.0

   

Total used

20,682

 

19,582

 

5.6

   
               

AVERAGE RETAIL SALES PRICE:

             

New vehicle retail

$   31,989

 

$   29,109

 

9.9

 

0.3

Used vehicle retail

$   24,919

 

$   21,373

 

16.6

 

6.8

               

GROSS PROFIT PER UNIT SOLD:

             

New vehicle retail sales

$     1,699

 

$     1,675

 

1.4

 

(7.2)

Used vehicle retail sales

1,235

 

1,060

 

16.5

 

6.4

Used vehicle wholesale sales

(111)

 

(59)

 

(88.1)

 

(81.5)

Total used

661

 

589

 

12.2

 

2.1

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

$        798

 

$        667

 

19.6

 

9.7

               

OTHER: 

             

SG&A expenses

$   93,134

 

$   83,017

 

12.2

 

2.6

Adjusted SG&A expenses(2)

$   93,134

 

$   82,729

 

12.6

 

3.0

SG&A as % revenues

9.3

 

9.4

       

Adjusted SG&A as % revenues (2)

9.3

 

9.4

       

SG&A as % gross profit

82.8

 

82.5

       

Adjusted SG&A as % gross profit (2)

82.8

 

82.2

       

Operating margin %

1.5

 

1.6

       

Adjusted operating margin % (2)

1.5

 

1.6

       
             

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

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

 

Group 1 Automotive, Inc.

Additional Information - Same Store Brazil (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)

               
 

Three Months Ended June 30,

 

2018

 

2017

 

% Increase/
(Decrease)

 

Constant Currency (2)

% Increase/ (Decrease)

REVENUES:

             

New vehicle retail sales

$   67,152

 

$   73,584

 

(8.7)

 

1.7

Used vehicle retail sales

21,270

 

21,350

 

(0.4)

 

11.1

Used vehicle wholesale sales

3,547

 

2,453

 

44.6

 

63.5

Total used

24,817

 

23,803

 

4.3

 

16.5

Parts and service

10,932

 

11,887

 

(8.0)

 

2.7

Finance, insurance and other, net

1,966

 

2,090

 

(5.9)

 

5.1

Total 

$ 104,867

 

$ 111,364

 

(5.8)

 

5.0

               

GROSS MARGIN %:

             

New vehicle retail sales

6.2

 

5.7

       

Used vehicle retail sales

6.0

 

7.2

       

Used vehicle wholesale sales

1.9

 

8.2

       

Total used

5.4

 

7.3

       

Parts and service

44.2

 

45.9

       

Finance, insurance and other, net

100.0

 

100.0

       

Total

11.7

 

12.1

       
               

GROSS PROFIT:

             

New vehicle retail sales

$     4,166

 

$     4,169

 

(0.1)

 

11.4

Used vehicle retail sales

1,278

 

1,537

 

(16.9)

 

(7.1)

Used vehicle wholesale sales

66

 

202

 

(67.3)

 

(66.7)

Total used

1,344

 

1,739

 

(22.7)

 

(14.1)

Parts and service

4,831

 

5,457

 

(11.5)

 

(1.2)

Finance, insurance and other, net

1,966

 

2,090

 

(5.9)

 

5.1

Total 

$   12,307

 

$   13,455

 

(8.5)

 

2.0

               

UNITS SOLD:

             

Retail new vehicles sold

2,063

 

2,180

 

(5.4)

   

Retail used vehicles sold

996

 

988

 

0.8

   

Wholesale used vehicles sold

314

 

237

 

32.5

   

Total used

1,310

 

1,225

 

6.9

   
               

AVERAGE RETAIL SALES PRICE:

             

New vehicle retail

$   32,551

 

$   33,754

 

(3.6)

 

7.5

Used vehicle retail

$   21,355

 

$   21,609

 

(1.2)

 

10.2

               

GROSS PROFIT PER UNIT SOLD:

             

New vehicle retail sales

$     2,019

 

$     1,912

 

5.6

 

17.7

Used vehicle retail sales

1,283

 

1,556

 

(17.5)

 

(7.9)

Used vehicle wholesale sales

210

 

852

 

(75.4)

 

(74.9)

Total used

1,026

 

1,420

 

(27.7)

 

(19.6)

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

$        643

 

$        660

 

(2.6)

 

8.9

               

OTHER: 

             

SG&A expenses

$   11,080

 

$   12,031

 

(7.9)

 

3.1

Adjusted SG&A expenses(2)

$   10,653

 

$   12,031

 

(11.5)

 

(1.1)

SG&A as % revenues

10.6

 

10.8

       

Adjusted SG&A as % revenues (2)

10.2

 

10.8

       

SG&A as % gross profit

90.0

 

89.4

       

Adjusted SG&A as % gross profit (2)

86.6

 

89.4

       

Operating margin %

0.7

 

1.0

       

Adjusted operating margin % (2)

1.1

 

1.0

       
               
 

Six Months Ended June 30,

 

2018

 

2017

 

% Increase/

(Decrease)

 

Constant Currency (2)
% Increase/ (Decrease)

REVENUES:

             

New vehicle retail sales

$ 136,387

 

$ 131,670

 

3.6

 

11.2

Used vehicle retail sales

45,461

 

43,151

 

5.4

 

13.0

Used vehicle wholesale sales

7,388

 

5,539

 

33.4

 

44.5

Total used

52,849

 

48,690

 

8.5

 

16.6

Parts and service

22,791

 

22,985

 

(0.8)

 

6.4

Finance, insurance and other, net

3,838

 

3,881

 

(1.1)

 

6.6

Total 

$ 215,865

 

$ 207,226

 

4.2

 

11.8

               

GROSS MARGIN %:

             

New vehicle retail sales

5.8

 

5.8

       

Used vehicle retail sales

6.0

 

7.3

       

Used vehicle wholesale sales

2.9

 

8.2

       

Total used

5.6

 

7.4

       

Parts and service

44.8

 

45.7

       

Finance, insurance and other, net

100.0

 

100.0

       

Total

11.6

 

12.4

       
               

GROSS PROFIT:

             

New vehicle retail sales

$     7,948

 

$     7,688

 

3.4

 

11.4

Used vehicle retail sales

2,730

 

3,129

 

(12.8)

 

(6.4)

Used vehicle wholesale sales

217

 

453

 

(52.1)

 

(50.7)

Total used

2,947

 

3,582

 

(17.7)

 

(12.0)

Parts and service

10,203

 

10,499

 

(2.8)

 

4.1

Finance, insurance and other, net

3,838

 

3,881

 

(1.1)

 

6.6

Total 

$   24,936

 

$   25,650

 

(2.8)

 

4.4

               

UNITS SOLD:

             

Retail new vehicles sold

4,130

 

3,856

 

7.1

   

Retail used vehicles sold

2,067

 

1,969

 

5.0

   

Wholesale used vehicles sold

671

 

506

 

32.6

   

Total used

2,738

 

2,475

 

10.6

   
               

AVERAGE RETAIL SALES PRICE:

             

New vehicle retail

$   33,023

 

$   34,147

 

(3.3)

 

3.8

Used vehicle retail

$   21,994

 

$   21,915

 

0.4

 

7.6

               

GROSS PROFIT PER UNIT SOLD:

             

New vehicle retail sales

$     1,924

 

$     1,994

 

(3.5)

 

4.0

Used vehicle retail sales

1,321

 

1,589

 

(16.9)

 

(10.9)

Used vehicle wholesale sales

323

 

895

 

(63.9)

 

(62.8)

Total used

1,076

 

1,447

 

(25.6)

 

(20.5)

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

$        619

 

$        666

 

(7.1)

 

0.2

               

OTHER: 

             

SG&A expenses

$   22,853

 

$   23,346

 

(2.1)

 

5.2

Adjusted SG&A expenses(2)

$   22,426

 

$   23,346

 

(3.9)

 

3.0

SG&A as % revenues

10.6

 

11.3

       

Adjusted SG&A as % revenues (2)

10.4

 

11.3

       

SG&A as % gross profit

91.6

 

91.0

       

Adjusted SG&A as % gross profit (2)

89.9

 

91.0

       

Operating margin %

0.6

 

0.8

       

Adjusted operating margin % (2)

0.8

 

0.8

       
             

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

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

 

Group 1 Automotive, Inc.

Additional Information - Same Store Consolidated (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)

               
 

Three Months Ended June 30,

 

2018

 

2017

 

% Increase/
(Decrease)

 

Constant Currency (2)

% Increase/ (Decrease)

REVENUES:

             

New vehicle retail sales

$   1,442,408

 

$   1,443,260

 

(0.1)

 

(0.6)

Used vehicle retail sales

750,430

 

683,759

 

9.8

 

8.8

Used vehicle wholesale sales

79,644

 

98,887

 

(19.5)

 

(21.1)

Total used

830,074

 

782,646

 

6.1

 

5.0

Parts and service

338,212

 

330,250

 

2.4

 

2.0

Finance, insurance and other, net

109,159

 

105,757

 

3.2

 

2.8

Total 

$   2,719,853

 

$   2,661,913

 

2.2

 

1.5

               

GROSS MARGIN %:

             

New vehicle retail sales

5.0

 

5.2

       

Used vehicle retail sales

6.3

 

6.6

       

Used vehicle wholesale sales

0.9

 

(0.2)

       

Total used

5.7

 

5.7

       

Parts and service

54.4

 

53.9

       

Finance, insurance and other, net

100.0

 

100.0

       

Total

15.2

 

15.1

       
               

GROSS PROFIT:

             

New vehicle retail sales

$        72,065

 

$        74,654

 

(3.5)

 

(3.8)

Used vehicle retail sales

46,968

 

44,822

 

4.8

 

4.0

Used vehicle wholesale sales

699

 

(240)

 

391.3

 

413.1

Total used

47,667

 

44,582

 

6.9

 

6.2

Parts and service

183,823

 

178,121

 

3.2

 

2.7

Finance, insurance and other, net

109,159

 

105,757

 

3.2

 

2.8

Total 

$      412,714

 

$      403,114

 

2.4

 

1.9

               

UNITS SOLD:

             

Retail new vehicles sold

40,267

 

40,722

 

(1.1)

   

Retail used vehicles sold

34,965

 

31,915

 

9.6

   

Wholesale used vehicles sold

11,934

 

14,022

 

(14.9)

   

Total used

46,899

 

45,937

 

2.1

   
               

AVERAGE RETAIL SALES PRICE:

             

New vehicle retail

$        35,821

 

$        35,442

 

1.1

 

0.6

Used vehicle retail

$        21,462

 

$        21,424

 

0.2

 

(0.7)

               

GROSS PROFIT PER UNIT SOLD:

             

New vehicle retail sales

$          1,790

 

$          1,833

 

(2.3)

 

(2.7)

Used vehicle retail sales

1,343

 

1,404

 

(4.3)

 

(5.1)

Used vehicle wholesale sales

59

 

(17)

 

447.1

 

467.9

Total used

1,016

 

971

 

4.6

 

4.0

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

$          1,451

 

$          1,456

 

(0.3)

 

(0.7)

               

OTHER: 

             

SG&A expenses

$      306,432

 

$      296,677

 

3.3

 

2.8

Adjusted SG&A expenses(2)

$      298,193

 

$      295,746

 

0.8

 

0.3

SG&A as % revenues

11.3

 

11.1

       

Adjusted SG&A as % revenues (2)

11.0

 

11.1

       

SG&A as % gross profit

74.2

 

73.6

       

Adjusted SG&A as % gross profit (2)

72.3

 

73.4

       

Operating margin %

3.2

 

3.5

       

Adjusted operating margin % (2)

3.6

 

3.5

       
               
 

Six Months Ended June 30,

 

2018

 

2017

 

% Increase/
(Decrease)

 

Constant Currency (2)
% Increase/ (Decrease)

REVENUES:

             

New vehicle retail sales

$   2,849,922

 

$   2,776,299

 

2.7

 

1.4

Used vehicle retail sales

1,474,594

 

1,342,311

 

9.9

 

8.2

Used vehicle wholesale sales

172,338

 

202,933

 

(15.1)

 

(17.8)

Total used

1,646,932

 

1,545,244

 

6.6

 

4.8

Parts and service

671,699

 

648,953

 

3.5

 

2.7

Finance, insurance and other, net

215,818

 

201,911

 

6.9

 

6.1

Total 

$   5,384,371

 

$   5,172,407

 

4.1

 

2.7

               

GROSS MARGIN %:

             

New vehicle retail sales

5.0

 

5.2

       

Used vehicle retail sales

6.0

 

6.7

       

Used vehicle wholesale sales

1.3

 

(0.1)

       

Total used

5.5

 

5.8

       

Parts and service

53.8

 

54.0

       

Finance, insurance and other, net

100.0

 

100.0

       

Total

15.0

 

15.2

       
               

GROSS PROFIT:

             

New vehicle retail sales

$      142,501

 

$      143,678

 

(0.8)

 

(2.0)

Used vehicle retail sales

88,119

 

89,727

 

(1.8)

 

(3.0)

Used vehicle wholesale sales

2,225

 

(121)

 

1,938.8

 

1979.1

Total used

90,344

 

89,606

 

0.8

 

(0.3)

Parts and service

361,610

 

350,234

 

3.2

 

2.3

Finance, insurance and other, net

215,818

 

201,911

 

6.9

 

6.1

Total 

$      810,273

 

$      785,429

 

3.2

 

2.2

               

UNITS SOLD:

             

Retail new vehicles sold

78,496

 

78,800

 

(0.4)

   

Retail used vehicles sold

68,758

 

63,403

 

8.4

   

Wholesale used vehicles sold

25,847

 

28,414

 

(9.0)

   

Total used

94,605

 

91,817

 

3.0

   
               

AVERAGE RETAIL SALES PRICE:

             

New vehicle retail

$        36,307

 

$        35,232

 

3.1

 

1.8

Used vehicle retail

$        21,446

 

$        21,171

 

1.3

 

(0.2)

               

GROSS PROFIT PER UNIT SOLD:

             

New vehicle retail sales

$          1,815

 

$          1,823

 

(0.4)

 

(1.7)

Used vehicle retail sales

1,282

 

1,415

 

(9.4)

 

(10.5)

Used vehicle wholesale sales

86

 

(4)

 

2,250.0

 

2165.7

Total used

955

 

976

 

(2.2)

 

(3.3)

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

$          1,466

 

$          1,420

 

3.2

 

2.5

               

OTHER: 

             

SG&A expenses

$      612,632

 

$      584,973

 

4.7

 

3.7

Adjusted SG&A expenses(2)

$      604,393

 

$      585,875

 

3.2

 

2.1

SG&A as % revenues

11.4

 

11.3

       

Adjusted SG&A as % revenues (2)

11.2

 

11.3

       

SG&A as % gross profit

75.6

 

74.5

       

Adjusted SG&A as % gross profit (2)

74.6

 

74.6

       

Operating margin %

3.0

 

3.3

       

Adjusted operating margin % (2)

3.3

 

3.3

       
             

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

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

 

Group 1 Automotive, Inc.

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

(Unaudited)

 (Dollars in thousands, except per share amounts)

   

Three Months Ended June 30,

   

2018

 

2017

 

% Increase/
(Decrease)

SG&A RECONCILIATION:

         
 

As reported

$ 234,279

 

$ 243,844

 

(3.9)

 

  Pre-tax adjustments:

         
 

 Catastrophic events 

(5,812)

 

(643)

   
 

 Gain on real estate and dealership transactions 

20,119

 

-

   
 

 Legal settlements 

(2,000)

 

-

   
 

Adjusted SG&A (1)

$ 246,586

 

$ 243,201

 

1.4

SG&A AS % REVENUES:

         
 

Unadjusted

10.8

 

11.5

   
 

Adjusted (1)

11.4

 

11.5

   

SG&A AS % GROSS PROFIT:

         
 

Unadjusted

66.8

 

71.6

   
 

Adjusted (1)

70.3

 

71.4

   

OPERATING MARGIN %:

         
 

Unadjusted

4.6

 

4.0

   
 

Adjusted (1), (2)

4.2

 

4.0

   

PRETAX MARGIN %:

         
 

Unadjusted

3.2

 

2.6

   
 

Adjusted (1), (2)

2.8

 

2.7

   

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$ 249,033

 

$ 242,559

 

2.7

 

  Pre-tax adjustments:

         
 

 Catastrophic events 

(5,812)

 

(643)

   
 

 Legal settlements 

(2,000)

 

-

   
 

Adjusted Same Store SG&A (1)

$ 241,221

 

$ 241,916

 

(0.3)

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

11.7

 

11.5

   
 

Adjusted (1)

11.4

 

11.4

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

72.5

 

71.6

   
 

Adjusted (1)

70.3

 

71.4

   

SAME STORE OPERATING MARGIN %:

         
 

Unadjusted

3.7

 

4.0

   
 

Adjusted (1), (3)

4.2

 

4.0

   
             
   

Six Months Ended June 30,

   

2018

 

2017

 

% Increase/
(Decrease)

SG&A RECONCILIATION:

         
 

As reported

$ 487,220

 

$ 480,117

 

1.5

 

  Pre-tax adjustments:

         
 

 Catastrophic events 

(5,812)

 

(643)

   
 

 Gain on real estate and dealership transactions 

20,119

 

-

   
 

 Legal settlements 

(2,000)

 

1,833

   
 

Adjusted SG&A (1)

$ 499,527

 

$ 481,307

 

3.8

SG&A AS % REVENUES:

         
 

Unadjusted

11.4

 

11.7

   
 

Adjusted (1)

11.7

 

11.8

   

SG&A AS % OF GROSS PROFIT:

         
 

Unadjusted

71.0

 

72.6

   
 

Adjusted (1)

72.8

 

72.8

   

OPERATING MARGIN %:

         
 

 Unadjusted 

4.0

 

3.8

   
 

Adjusted (1), (2)

3.8

 

3.8

   

PRETAX MARGIN %:

         
 

Unadjusted

2.6

 

2.5

   
 

Adjusted (1), (2)

2.4

 

2.5

   

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$ 496,645

 

$ 478,610

 

3.8

 

  Pre-tax adjustments:

         
 

 Catastrophic events 

(5,812)

 

(643)

   
 

 Legal settlements 

(2,000)

 

1,833

   
 

Adjusted Same Store SG&A (1)

$ 488,833

 

$ 479,800

 

1.9

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

11.9

 

11.7

   
 

Adjusted (1)

11.7

 

11.7

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

73.8

 

72.6

   
 

Adjusted (1)

72.6

 

72.8

   

SAME STORE OPERATING MARGIN %:

         
 

Unadjusted

3.5

 

3.9

   
 

Adjusted (1), (3)

3.8

 

3.8

   
             

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

(2)Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $4,268 for the three and six months ended June 30, 2018.

(3)Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $4,022 for the three and six months ended June 30, 2018.

 

Group 1 Automotive, Inc.

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

(Unaudited)

 (Dollars in thousands, except per share amounts)

             
   

Three Months Ended June 30,

   

2018

 

2017

 

% Increase/

(Decrease)

SG&A RECONCILIATION:

         
 

As reported

$   62,258

 

$ 42,456

 

46.6

 

  Pre-tax adjustments:

         
 

 Acquisition costs 

-

 

(288)

   
 

Adjusted SG&A (1)

$   62,258

 

$ 42,168

 

47.6

SG&A AS % REVENUES:

         
 

Unadjusted

9.3

 

9.7

   
 

Adjusted (1)

9.3

 

9.6

   

SG&A AS % GROSS PROFIT:

         
 

Unadjusted

83.2

 

83.4

   
 

Adjusted (1)

83.2

 

82.8

   

OPERATING MARGIN %:

         
 

Unadjusted

1.4

 

1.5

   
 

Adjusted (1)

1.4

 

1.6

   

PRETAX MARGIN %:

         
 

Unadjusted

0.9

 

1.1

   
 

Adjusted (1)

0.9

 

1.2

   

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$   46,319

 

$ 42,087

 

10.1

 

  Pre-tax adjustments:

         
 

 Acquisition costs 

-

 

(288)

   
 

Adjusted Same Store SG&A (1)

$   46,319

 

$ 41,799

 

10.8

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

9.4

 

9.7

   
 

Adjusted (1)

9.4

 

9.6

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

81.1

 

83.0

   
 

Adjusted (1)

81.1

 

82.5

   

SAME STORE OPERATING MARGIN %:

         
 

Unadjusted

1.7

 

1.6

   
 

Adjusted (1)

1.7

 

1.6

   
             
   

 Six Months Ended June 30, 

   

2018

 

2017

 

% Increase/
(Decrease)

SG&A RECONCILIATION:

         
 

As reported

$ 121,854

 

$ 84,080

 

44.9

 

  Pre-tax adjustments:

         
 

 Acquisition costs 

-

 

(288)

   
 

Adjusted SG&A (1)

$ 121,854

 

$ 83,792

 

45.4

SG&A AS % REVENUES:

         
 

Unadjusted

9.2

 

9.5

   
 

Adjusted (1)

9.2

 

9.4

   

SG&A AS % OF GROSS PROFIT:

         
 

Unadjusted

83.3

 

83.1

   
 

Adjusted (1)

83.3

 

82.8

   

OPERATING MARGIN %:

         
 

Unadjusted

1.4

 

1.5

   
 

Adjusted (1)

1.4

 

1.6

   

PRETAX MARGIN %:

         
 

Unadjusted

0.9

 

1.2

   
 

Adjusted (1)

0.9

 

1.2

   

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$   93,134

 

$ 83,017

 

12.2

 

  Pre-tax adjustments:

         
 

 Acquisition costs 

-

 

(288)

   
 

Adjusted Same Store SG&A (1)

$   93,134

 

$ 82,729

 

12.6

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

9.3

 

9.4

   
 

Adjusted (1)

9.3

 

9.4

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

82.8

 

82.5

   
 

Adjusted (1)

82.8

 

82.2

   

SAME STORE OPERATING MARGIN %:

         
 

Unadjusted

1.5

 

1.6

   
 

Adjusted (1)

1.5

 

1.6

   
             

 (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.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Brazil

(Unaudited)

 (Dollars in thousands, except per share amounts)

             
   

Three Months Ended June 30,

   

2018

 

2017

 

% Increase/
(Decrease)

SG&A RECONCILIATION:

         
 

As reported

$ 11,555

 

$ 12,268

 

(5.8)

 

  Pre-tax adjustments:

         
 

 Legal settlements 

(550)

 

-

   
 

Adjusted SG&A (1)

$ 11,005

 

$ 12,268

 

(10.3)

SG&A AS % REVENUES:

         
 

Unadjusted

10.6

 

11.0

   
 

Adjusted (1)

10.1

 

11.0

   

SG&A AS % GROSS PROFIT:

         
 

Unadjusted

91.1

 

91.0

   
 

Adjusted (1)

86.7

 

91.0

   

OPERATING MARGIN %:

         
 

Unadjusted

0.6

 

0.8

   
 

Adjusted (1)

1.1

 

0.8

   

PRETAX MARGIN %:

         
 

Unadjusted

0.2

 

0.6

   
 

Adjusted (1)

0.7

 

0.6

   

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$ 11,080

 

$ 12,031

 

(7.9)

 

  Pre-tax adjustments:

         
 

 Legal settlements 

(427)

 

-

   
 

Adjusted Same Store SG&A (1)

$ 10,653

 

$ 12,031

 

(11.5)

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

10.6

 

10.8

   
 

Adjusted (1)

10.2

 

10.8

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

90.0

 

89.4

   
 

Adjusted (1)

86.6

 

89.4

   

SAME STORE OPERATING MARGIN %:

         
 

Unadjusted

0.7

 

1.0

   
 

Adjusted (1)

1.1

 

1.0

   
             
   

 Six Months Ended June 30, 

   

2018

 

2017

 

% Increase/
(Decrease)

SG&A RECONCILIATION:

         
 

As reported

$ 23,365

 

$ 24,150

 

(3.3)

 

  Pre-tax adjustments:

         
 

 Legal settlements 

(550)

 

-

   
 

Adjusted SG&A (1)

$ 22,815

 

$ 24,150

 

(5.5)

SG&A AS % REVENUES:

         
 

Unadjusted

10.6

 

11.4

   
 

Adjusted (1)

10.4

 

11.4

   

SG&A AS % OF GROSS PROFIT:

         
 

Unadjusted

92.3

 

92.5

   
 

Adjusted (1)

90.1

 

92.5

   

OPERATING MARGIN %:

         
 

Unadjusted

0.5

 

0.6

   
 

Adjusted (1)

0.7

 

0.6

   

PRETAX MARGIN %:

         
 

Unadjusted

0.1

 

0.4

   
 

Adjusted (1)

0.3

 

0.4

   

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$ 22,853

 

$ 23,346

 

(2.1)

 

  Pre-tax adjustments:

         
 

 Legal settlements 

(427)

 

-

   
 

Adjusted Same Store SG&A (1)

$ 22,426

 

$ 23,346

 

(3.9)

             

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

10.6

 

11.3

   
 

Adjusted (1)

10.4

 

11.3

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

91.6

 

91.0

   
 

Adjusted (1)

89.9

 

91.0

   

SAME STORE OPERATING MARGIN %:

         
 

Unadjusted

0.6

 

0.8

   
 

Adjusted (1)

0.8

 

0.8

   
             

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

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Consolidated

(Unaudited)

 (Dollars in thousands, except per share amounts)

             
   

Three Months Ended June 30,

   

2018

 

2017

 

% Increase/
(Decrease)

             

NET INCOME RECONCILIATION:

         
 

As reported

         
 

  Pretax Net Income

$        75,188

 

$        61,690

   
 

  Income Tax Provision

(18,725)

 

(22,557)

   
 

     Net Income  

$        56,463

 

$        39,133

 

44.3

 

       Effective Tax Rate 

24.9%

 

36.6%

   
 

 Adjustments:  

         
 

 Catastrophic events  

         
 

 Pre-tax 

$          5,812

 

$             643

   
 

 Tax impact 

(1,444)

 

(250)

   
 

 Gain on real estate and dealership transactions 

         
 

 Pre-tax 

(20,119)

 

-

   
 

 Tax impact 

4,917

 

-

   
 

 Acquisition costs  

         
 

 Pre-tax 

-

 

288

   
 

 Tax impact 

-

 

-

   
 

 Legal settlements 

         
 

 Pre-tax 

2,550

 

-

   
 

 Tax impact 

(568)

 

-

   
 

 Non-cash asset impairment 

         
 

 Pre-tax  

4,268

 

-

   
 

 Tax impact 

(1,089)

 

-

   
 

 Adjusted 

         
 

   Pretax Net Income 

$        67,699

 

$        62,621

   
 

   Income Tax Provision 

(16,909)

 

(22,807)

   
 

  Adjusted net income (1)

$        50,790

 

$        39,814

 

27.6

 

       Effective Tax Rate 

25.0%

 

36.42%

   

ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION:

         
 

Adjusted net income (1)

$        50,790

 

$        39,814

 

27.6

 

Less: Adjusted earnings allocated to participating securities

1,722

 

1,413

 

21.9

 

Adjusted net income available to diluted common shares (1)

$        49,068

 

$        38,401

 

27.8

 DILUTED (LOSS) INCOME PER COMMON SHARE RECONCILIATION: 

         
 

As reported

$            2.72

 

$            1.84

 

47.8

 

  After-tax adjustments:

         
 

 Catastrophic events  

0.21

 

0.02

   
 

 Gain on real estate and dealership transactions 

(0.73)

 

-

   
 

 Acquisition costs including related tax impact  

-

 

0.01

   
 

 Legal settlements  

0.10

 

-

   
 

 Non-cash asset impairment 

0.15

 

-

   
 

Adjusted diluted income per share (1)

$            2.45

 

$            1.87

 

31.0

SG&A RECONCILIATION:

         
 

As reported

$      308,092

 

$      298,568

 

3.2

 

  Pre-tax adjustments:

         
 

 Catastrophic events 

(5,812)

 

(643)

   
 

 Gain on real estate and dealership transactions 

20,119

 

-

   
 

 Acquisition costs 

-

 

(288)

   
 

 Legal settlements 

(2,550)

 

-

   
 

Adjusted SG&A (1)

$      319,849

 

$      297,637

 

7.5

SG&A AS % REVENUES:

         
 

Unadjusted

10.5

 

11.2

   
 

Adjusted (1)

10.9

 

11.1

   

SG&A AS % GROSS PROFIT:

         
 

Unadjusted

70.3

 

73.7

   
 

Adjusted (1)

73.0

 

73.5

   

OPERATING MARGIN %:

         
 

Unadjusted

3.7

 

3.5

   
 

Adjusted (1), (2)

3.5

 

3.5

   

PRETAX MARGIN %:

         
 

Unadjusted

2.6

 

2.3

   
 

Adjusted (1), (2)

2.3

 

2.3

   

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$      306,432

 

$      296,677

 

3.3

 

  Pre-tax adjustments:

         
 

 Catastrophic events 

(5,812)

 

(643)

   
 

 Acquisition costs 

-

 

(288)

   
 

 Legal settlements 

(2,427)

 

-

   
 

Adjusted Same Store SG&A (1)

$      298,193

 

$      295,746

 

0.8

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

11.3

 

11.1

   
 

Adjusted (1)

11.0

 

11.1

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

74.2

 

73.6

   
 

Adjusted (1)

72.3

 

73.4

   

SAME STORE OPERATING MARGIN %:

         
 

Unadjusted

3.2

 

3.5

   
 

Adjusted (1), (3)

3.6

 

3.5

   
             
   

 Six Months Ended June 30, 

   

2018

 

2017

 

% Increase/
(Decrease)

NET INCOME RECONCILIATION:

         
 

As reported

         
 

  Pretax Net Income

$      121,355

 

$      112,886

   
 

   Income Tax Provision 

(29,078)

 

(39,814)

   
 

     Net Income  

$        92,277

 

$        73,072

 

26.3

 

       Effective Tax Rate 

24.0%

 

35.3%

   
 

 Adjustments: 

         
 

 Catastrophic events  

         
 

 Pre-tax 

$          5,812

 

$             643

   
 

 Tax impact 

(1,444)

 

(250)

   
 

 Gain on real estate and dealership transactions 

         
 

 Pre-tax 

(20,119)

 

-

   
 

 Tax impact 

4,917

 

-

   
 

 Acquisition costs  

         
 

 Pre-tax 

-

 

288

   
 

 Tax impact 

-

 

-

   
 

 Legal settlements 

         
 

 Pre-tax 

2,550

 

(1,833)

   
 

 Tax impact 

(568)

 

696

   
 

 Non-cash asset impairment 

         
 

 Pre-tax  

4,268

 

-

   
 

 Tax impact 

(1,089)

 

-

   
 

 Adjusted 

         
 

   Pretax Net Income 

$      113,866

 

$      111,984

   
 

   Income Tax Provision 

(27,262)

 

(39,368)

   
 

Adjusted net income (1)

$        86,604

 

$        72,616

 

19.3

 

      Effective Tax Rate

23.9%

 

35.2%

   

 ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION:

         
 

Adjusted net income (1)

$        86,604

 

$        72,616

 

19.3

 

 Less: Adjusted earnings allocated to participating securities 

2,930

 

2,628

 

11.5

 

  Adjusted net income available to diluted common shares (1)

$        83,674

 

$        69,988

 

19.6

 DILUTED INCOME PER COMMON SHARE RECONCILIATION: 

         
 

 As reported 

$            4.42

 

$            3.42

 

29.2

 

   After-tax adjustments: 

         
 

 Catastrophic events  

0.21

 

0.02

   
 

 Gain on real estate and dealership transactions 

(0.73)

 

-

   
 

 Acquisition costs including related tax impact  

-

 

0.01

   
 

 Legal settlements  

0.10

 

(0.05)

   
 

 Non-cash asset impairment 

0.15

 

-

   
 

Adjusted diluted income per share (1)

$            4.15

 

$            3.40

 

22.1

SG&A RECONCILIATION:

         
 

As reported

$      632,439

 

$      588,347

 

7.5

 

  Pre-tax adjustments:

         
 

 Catastrophic events 

(5,812)

 

(643)

   
 

 Gain on real estate and dealership transactions 

20,119

 

-

   
 

 Acquisition costs 

-

 

(288)

   
 

 Legal settlements 

(2,550)

 

1,833

   
 

Adjusted SG&A (1)

$      644,196

 

$      589,249

 

9.3

SG&A AS % REVENUES:

         
 

Unadjusted

10.9

 

11.3

   
 

Adjusted (1)

11.1

 

11.4

   

SG&A AS % OF GROSS PROFIT:

         
 

Unadjusted

73.7

 

74.6

   
 

Adjusted (1)

75.1

 

74.7

   

OPERATING MARGIN %:

         
 

Unadjusted

3.2

 

3.3

   
 

Adjusted (1), (2)

3.1

 

3.3

   

PRETAX MARGIN %:

         
 

Unadjusted

2.1

 

2.2

   
 

Adjusted (1), (2)

2.0

 

2.2

   

 SAME STORE SG&A RECONCILIATION: 

         
 

As reported

$      612,632

 

$      584,973

 

4.7

 

  Pre-tax adjustments:

         
 

 Catastrophic events 

(5,812)

 

(643)

   
 

 Acquisition costs 

-

 

(288)

   
 

 Legal settlements 

(2,427)

 

1,833

   
 

Adjusted Same Store SG&A (1)

$      604,393

 

$      585,875

 

3.2

 SAME STORE SG&A AS % REVENUES: 

         
 

 Unadjusted 

11.4

 

11.3

   
 

Adjusted (1)

11.2

 

11.3

   

 SAME STORE SG&A AS % GROSS PROFIT: 

         
 

Unadjusted

75.6

 

74.5

   
 

Adjusted (1)

74.6

 

74.6

   

 SAME STORE OPERATING MARGIN %: 

         
 

Unadjusted

3.0

 

3.3

   
 

Adjusted (1), (3)

3.3

 

3.3

   
             

 (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 $4,268 for the three and six months ended June 30, 2018.

(3)Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $4,022 for the three and six months ended June 30, 2018.

 

SOURCE Group 1 Automotive, Inc.


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