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Group 1 Automotive

800 Gessner
Houston, TX 77024

  • Sales: (713) 647-5700
Investor Relations

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

- Delivers All-Time Record Revenue of $11.6 Billion

- Repurchased 1.3 Million Shares During Fourth Quarter

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

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

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

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

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

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

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

 

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

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

 

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

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

 

Share Repurchase Authorization

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

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

Corporate Development

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

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

 

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

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

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

Fourth Quarter 2018 Earnings Conference Call Details

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

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

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

Domestic:

1-888-317-6003

International:

1-412-317-6061

Conference ID:

5218141

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

Domestic:

1-877-344-7529

International:

1-412-317-0088

Replay ID:

10128118

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

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

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

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

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

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

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

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

Group 1 Automotive, Inc.

Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)

           
 

Three Months Ended December 31,

 

2018

 

2017

 

% Increase/

(Decrease)

REVENUES:

         

New vehicle retail sales

$

1,572,713

 

$

1,661,309

 

(5.3)

Used vehicle retail sales

771,242

 

709,072

 

8.8

Used vehicle wholesale sales

86,122

 

91,809

 

(6.2)

Parts and service

354,744

 

343,510

 

3.3

Finance, insurance and other, net

123,991

 

114,705

 

8.1

Total revenues

2,908,812

 

2,920,405

 

(0.4)

COST OF SALES:

         

New vehicle retail sales

1,491,455

 

1,571,774

 

(5.1)

Used vehicle retail sales

730,178

 

668,558

 

9.2

Used vehicle wholesale sales

86,009

 

94,199

 

(8.7)

Parts and service

169,104

 

160,199

 

5.6

Total cost of sales

2,476,746

 

2,494,730

 

(0.7)

GROSS PROFIT

432,066

 

425,675

 

1.5

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

323,847

 

309,521

 

4.6

DEPRECIATION AND AMORTIZATION EXPENSE

17,109

 

15,178

 

12.7

ASSET IMPAIRMENTS

16,456

 

9,980

 

64.9

OPERATING INCOME (LOSS)

74,654

 

90,996

 

(18.0)

OTHER EXPENSE:

         

Floorplan interest expense

(16,547)

 

(13,713)

 

20.7

Other interest expense, net

(18,424)

 

(18,309)

 

0.6

INCOME (LOSS) BEFORE INCOME TAXES

39,683

 

58,974

 

(32.7)

BENEFIT (PROVISION) FOR INCOME TAXES

(8,965)

 

51,515

 

(117.4)

NET INCOME (LOSS)

$

30,718

 

$

110,489

 

(72.2)

Less: Earnings allocated to participating securities

$

1,096

 

$

3,718

 

(70.5)

Earnings available to diluted common shares

$

29,622

 

$

106,771

 

(72.3)

DILUTED EARNINGS PER SHARE

$

1.62

 

$

5.27

 

(69.3)

Weighted average dilutive common shares outstanding

18,255

 

20,261

 

(9.9)

Weighted average participating securities

681

 

708

 

(3.8)

Total weighted average shares outstanding

18,936

 

20,969

 

(9.7)

 

Group 1 Automotive, Inc.

Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)

           
 

Twelve Months Ended December 31,

 

2018

 

2017

 

% Increase/

(Decrease)

REVENUES:

         

New vehicle retail sales

$

6,181,371

 

$

6,157,531

 

0.4

Used vehicle retail sales

3,166,070

 

2,798,986

 

13.1

Used vehicle wholesale sales

369,575

 

400,170

 

(7.6)

Parts and service

1,416,889

 

1,338,032

 

5.9

Finance, insurance and other, net

467,453

 

429,002

 

9.0

Total revenues

11,601,358

 

11,123,721

 

4.3

COST OF SALES:

         

New vehicle retail sales

5,870,502

 

5,835,526

 

0.6

Used vehicle retail sales

2,980,142

 

2,621,431

 

13.7

Used vehicle wholesale sales

367,880

 

402,912

 

(8.7)

Parts and service

657,741

 

618,343

 

6.4

Total cost of sales

9,876,265

 

9,478,212

 

4.2

GROSS PROFIT

1,725,093

 

1,645,509

 

4.8

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

1,273,057

 

1,226,195

 

3.8

DEPRECIATION AND AMORTIZATION EXPENSE

67,070

 

57,936

 

15.8

ASSET IMPAIRMENTS

43,883

 

19,506

 

125.0

OPERATING INCOME (LOSS)

341,083

 

341,872

 

(0.2)

OTHER EXPENSE:

         

Floorplan interest expense

(59,882)

 

(52,372)

 

14.3

Other interest expense, net

(75,798)

 

(70,497)

 

7.5

INCOME (LOSS) BEFORE INCOME TAXES

205,403

 

219,003

 

(6.2)

BENEFIT (PROVISION) FOR INCOME TAXES

(47,631)

 

(5,561)

 

756.5

NET INCOME (LOSS)

$

157,772

 

$

213,442

 

(26.1)

Less: Earnings allocated to participating securities

$

5,414

 

$

7,511

 

(27.9)

Earnings available to diluted common shares

$

152,358

 

$

205,931

 

(26.0)

DILUTED EARNINGS PER SHARE

$

7.83

 

$

10.08

 

(22.3)

Weighted average dilutive common shares outstanding

19,461

 

20,425

 

(4.7)

Weighted average participating securities

697

 

752

 

(7.3)

Total weighted average shares outstanding

20,158

 

21,177

 

(4.8)

 

Group 1 Automotive, Inc.

Consolidated Balance Sheets

(Unaudited)

(Dollars in thousands)

             
 

As of December 31,

 

2018

 

2017

 

% Increase/
(Decrease) 

ASSETS:

         

CURRENT ASSETS:

         

Cash and cash equivalents

$

15,932

 

$

28,787

 

(44.7)

Contracts in transit and vehicle receivables, net

265,660

 

306,433

 

(13.3)

Accounts and notes receivable, net

193,981

 

188,611

 

2.8

Inventories, net

1,844,059

 

1,763,293

 

4.6

Prepaid expenses and other current assets

82,734

 

42,062

 

96.7

Total current assets

2,402,366

 

2,329,186

 

3.1

PROPERTY AND EQUIPMENT, net

1,347,835

 

1,318,959

 

2.2

GOODWILL AND INTANGIBLE FRANCHISE RIGHTS

1,223,555

 

1,198,666

 

2.1

OTHER ASSETS

27,319

 

24,254

 

12.6

Total assets

$

5,001,075

 

$

4,871,065

 

2.7

           

LIABILITIES AND STOCKHOLDERS' EQUITY:

         

CURRENT LIABILITIES:

         

Floorplan notes payable - credit facility and other

$

1,292,452

 

$

1,240,695

 

4.2

Offset account related to floorplan notes payable - credit facility

(33,637)

 

(86,547)

 

(61.1)

Floorplan notes payable - manufacturer affiliates

417,924

 

397,183

 

5.2

Offset account related to floorplan notes payable - manufacturer affiliates

(100)

 

(22,500)

 

(99.6)

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

92,967

 

77,609

 

19.8

Current liabilities from interest rate risk management activities

115

 

1,996

 

(94.2)

Accounts payable

419,350

 

412,981

 

1.5

Accrued expenses

197,494

 

177,070

 

11.5

Total current liabilities

2,386,565

 

2,198,487

 

8.6

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

543,730

 

542,063

 

0.3

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

296,735

 

296,151

 

0.2

ACQUISITION LINE

31,842

 

26,988

 

18.0

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

366,723

 

405,950

 

(9.7)

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

42,459

 

47,032

 

(9.7)

DEFERRED INCOME TAXES

134,683

 

124,404

 

8.3

LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES

1,696

 

8,583

 

(80.2)

OTHER LIABILITIES

100,948

 

97,125

 

3.9

STOCKHOLDERS' EQUITY:

         

Common stock

255

 

255

 

Additional paid-in capital

292,774

 

291,461

 

0.5

Retained earnings

1,394,817

 

1,246,323

 

11.9

Accumulated other comprehensive income (loss)

(137,772)

 

(123,226)

 

11.8

Treasury stock

(454,380)

 

(290,531)

 

56.4

Total stockholders' equity

1,095,694

 

1,124,282

 

(2.5)

Total liabilities and stockholders' equity

$

5,001,075

 

$

4,871,065

 

2.7

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

                 
   

Three Months Ended

 

Twelve Months Ended

   

December 31,

 

December 31,

   

2018 (%)

 

2017 (%)

 

2018 (%)

 

2017 (%)

NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:

             

Region

Geographic Market

             

United States

Texas

38.6

 

39.2

 

36.4

 

37.0

 

Oklahoma

6.7

 

6.0

 

6.3

 

6.1

 

California

6.0

 

7.3

 

6.2

 

7.5

 

Massachusetts

4.7

 

4.5

 

4.9

 

4.6

 

Georgia

4.7

 

4.6

 

4.5

 

4.6

 

Florida

2.7

 

2.9

 

2.7

 

2.6

 

Louisiana

2.5

 

1.8

 

2.1

 

1.9

 

New Hampshire

1.8

 

1.9

 

1.8

 

2.0

 

South Carolina

1.9

 

1.6

 

1.6

 

1.4

 

New Jersey

1.7

 

1.6

 

1.6

 

1.7

 

Kansas

1.3

 

1.4

 

1.4

 

1.6

 

Mississippi

1.1

 

1.1

 

1.2

 

1.3

 

Alabama

0.7

 

0.8

 

0.7

 

1.0

 

Maryland

0.5

 

0.4

 

0.5

 

0.4

 

New Mexico

0.2

 

0.1

 

0.2

 

0.1

   

75.1

 

75.2

 

72.1

 

73.8

                 

International

United Kingdom

19.0

 

19.5

 

22.7

 

21.3

 

Brazil

5.9

 

5.3

 

5.2

 

4.9

   

100.0

 

100.0

 

100.0

 

100.0

               

NEW VEHICLE UNIT SALES BRAND MIX:

             

Toyota/Lexus

25.9

 

25.4

 

25.2

 

25.3

Volkswagen/Audi/Porsche/SEAT/SKODA

11.4

 

13.7

 

13.4

 

13.8

BMW/MINI

11.8

 

12.4

 

12.0

 

12.7

Ford/Lincoln

10.2

 

11.4

 

10.9

 

11.5

Honda/Acura

10.7

 

9.2

 

9.7

 

9.2

Nissan

6.5

 

7.0

 

6.5

 

7.4

Chevrolet/GMC/Buick/Cadillac

7.1

 

6.3

 

6.1

 

6.2

Mercedes-Benz/smart/Sprinter

5.1

 

4.4

 

4.8

 

4.0

Chrysler/Dodge/Jeep/RAM

3.7

 

3.9

 

4.0

 

3.9

Hyundai/Kia

3.7

 

3.8

 

3.9

 

3.9

Jaguar/Land Rover

2.0

 

1.2

 

1.9

 

0.9

Other

1.9

 

1.3

 

1.6

 

1.2

 

100.0

 

100.0

 

100.0

 

100.0

 

Group 1 Automotive, Inc.

Additional Information - U.S.

(Unaudited)

(Dollars in thousands, except per unit amounts)

           
 

Three Months Ended December 31,

 

2018

 

2017

 

% Increase/

(Decrease)

REVENUES:

         

New vehicle retail sales

$

1,249,434

 

$

1,310,577

 

(4.7)

Used vehicle retail sales

579,151

 

540,528

 

7.1

Used vehicle wholesale sales

41,403

 

50,284

 

(17.7)

Total used

620,554

 

590,812

 

5.0

Parts and service

290,520

 

286,608

 

1.4

Finance, insurance and other, net

106,032

 

99,200

 

6.9

Total

$

2,266,540

 

$

2,287,197

 

(0.9)

GROSS MARGIN %:

         

New vehicle retail sales

5.0

 

5.3

   

Used vehicle retail sales

5.6

 

5.9

   

Used vehicle wholesale sales

0.9

 

(4.5)

   

Total used

5.2

 

5.0

   

Parts and service

52.2

 

53.2

   

Finance, insurance and other, net

100.0

 

100.0

   

Total

15.6

 

15.3

   

GROSS PROFIT:

         

New vehicle retail sales

$

62,287

 

$

69,455

 

(10.3)

Used vehicle retail sales

32,172

 

31,931

 

0.8

Used vehicle wholesale sales

364

 

(2,257)

 

116.1

Total used

32,536

 

29,674

 

9.6

Parts and service

151,625

 

152,349

 

(0.5)

Finance, insurance and other, net

106,032

 

99,200

 

6.9

Total

$

352,480

 

$

350,678

 

0.5

UNITS SOLD:

         

Retail new vehicles sold

31,754

 

33,608

 

(5.5)

Retail used vehicles sold

27,887

 

24,735

 

12.7

Wholesale used vehicles sold

6,832

 

8,194

 

(16.6)

Total used

34,719

 

32,929

 

5.4

AVERAGE RETAIL SALES PRICE:

         

New vehicle retail

$

39,347

 

$

38,996

 

0.9

Used vehicle retail

$

20,768

 

$

21,853

 

(5.0)

GROSS PROFIT PER UNIT SOLD:

         

New vehicle retail sales

$

1,962

 

$

2,067

 

(5.1)

Used vehicle retail sales

1,154

 

1,291

 

(10.6)

Used vehicle wholesale sales

53

 

(275)

 

119.3

Total used

937

 

901

 

4.0

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

$

1,778

 

$

1,700

 

4.6

OTHER:

         

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

$

104,957

 

$

99,200

 

5.8

Adjusted Total Revenue (1)

$

2,265,465

 

$

2,287,197

 

(1.0)

Adjusted Total Gross Profit (1)

$

351,405

 

$

350,678

 

0.2

Adjusted Total Gross Margin (1)

15.5

 

15.3

   

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

$

1,760

 

$

1,700

 

3.5

SG&A expenses

$

252,634

 

$

242,070

 

4.4

Adjusted SG&A expenses (1)

$

251,020

 

$

242,070

 

3.7

SG&A as % revenues

11.1

 

10.6

   

Adjusted SG&A as % revenues (1)

11.1

 

10.6

   

SG&A as % gross profit

71.7

 

69.0

   

Adjusted SG&A as % gross profit (1)

71.4

 

69.0

   

Operating margin %

3.1

 

4.1

   

Adjusted operating margin % (1)

3.8

 

4.2

   

Pretax margin %

1.7

 

2.8

   

Adjusted pretax margin % (1)

2.5

 

2.9

   

INTEREST EXPENSE:

         

Floorplan interest expense

$

(14,723)

 

$

(12,267)

 

20.0

Floorplan assistance

12,621

 

12,952

 

(2.6)

Net floorplan income (expense)

$

(2,102)

 

$

685

 

(406.9)

Other interest expense, net

$

(16,464)

 

$

(16,922)

 

(2.7)

 

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

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

 

Group 1 Automotive, Inc.

Additional Information - U.S.

(Unaudited)

(Dollars in thousands, except per unit amounts)

           
 

Twelve Months Ended December 31,

 

2018

 

2017

 

% Increase/

(Decrease)

REVENUES:

         

New vehicle retail sales

$

4,682,820

 

$

4,768,864

 

(1.8)

Used vehicle retail sales

2,306,999

 

2,160,699

 

6.8

Used vehicle wholesale sales

178,910

 

250,668

 

(28.6)

Total used

2,485,909

 

2,411,367

 

3.1

Parts and service

1,153,257

 

1,124,380

 

2.6

Finance, insurance and other, net

401,271

 

375,954

 

6.7

Total

$

8,723,257

 

$

8,680,565

 

0.5

GROSS MARGIN %:

         

New vehicle retail sales

4.9

 

5.1

   

Used vehicle retail sales

6.1

 

6.7

   

Used vehicle wholesale sales

2.1

 

(1.0)

   

Total used

5.9

 

5.9

   

Parts and service

53.4

 

53.6

   

Finance, insurance and other, net

100.0

 

100.0

   

Total

15.9

 

15.7

   

GROSS PROFIT:

         

New vehicle retail sales

$

229,058

 

$

244,286

 

(6.2)

Used vehicle retail sales

141,707

 

144,529

 

(2.0)

Used vehicle wholesale sales

3,751

 

(2,427)

 

254.6

Total used

145,458

 

142,102

 

2.4

Parts and service

615,519

 

602,972

 

2.1

Finance, insurance and other, net

401,271

 

375,954

 

6.7

Total

$

1,391,306

 

$

1,365,314

 

1.9

UNITS SOLD:

         

Retail new vehicles sold

122,873

 

127,141

 

(3.4)

Retail used vehicles sold

111,806

 

101,170

 

10.5

Wholesale used vehicles sold

30,625

 

37,662

 

(18.7)

Total used

142,431

 

138,832

 

2.6

AVERAGE RETAIL SALES PRICE:

         

New vehicle retail

$

38,111

 

$

37,508

 

1.6

Used vehicle retail

$

20,634

 

$

21,357

 

(3.4)

GROSS PROFIT PER UNIT SOLD:

         

New vehicle retail sales

$

1,864

 

$

1,921

 

(3.0)

Used vehicle retail sales

1,267

 

1,429

 

(11.3)

Used vehicle wholesale sales

122

 

(64)

 

290.6

Total used

1,021

 

1,024

 

(0.3)

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

$

1,710

 

$

1,647

 

3.8

OTHER:

         

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

$

400,196

 

$

382,504

 

4.6

Adjusted Total revenue (1)

$

8,722,182

 

$

8,687,115

 

0.4

Adjusted Total gross profit (1)

$

1,390,231

 

$

1,371,864

 

1.3

Adjusted Total gross margin (1)

15.9

 

15.8

   

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

$

1,705

 

$

1,675

 

1.8

SG&A expenses

$

982,064

 

$

983,974

 

(0.2)

Adjusted SG&A expenses (1)

$

999,548

 

$

975,497

 

2.5

SG&A as % revenues

11.3

 

11.3

   

Adjusted SG&A as % revenues (1)

11.5

 

11.2

   

SG&A as % gross profit

70.6

 

72.1

   

Adjusted SG&A as % gross profit (1)

71.9

 

71.1

   

Operating margin %

3.6

 

3.7

   

Adjusted operating margin % (1)

3.9

 

4.0

   

Pretax margin %

2.2

 

2.4

   

Adjusted pretax margin % (1)

2.5

 

2.7

   

INTEREST EXPENSE:

         

Floorplan interest expense

$

(52,773)

 

$

(47,221)

 

11.8

Floorplan assistance

46,313

 

47,984

 

(3.5)

Net floorplan income (expense)

$

(6,460)

 

$

763

 

(946.7)

Other interest expense, net

$

(68,085)

 

$

(66,493)

 

2.4

 

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

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

 

Group 1 Automotive, Inc.

Additional Information - U.K.

(Unaudited)

(Dollars in thousands, except per unit amounts)

   
 

Three Months Ended December 31,

 

2018

 

2017

 

% Increase/
(Decrease)

 

Constant Currency (1)
% Increase/(Decrease)

REVENUES:

             

New vehicle retail sales

$

246,050

 

$

267,785

 

(8.1)

 

(5.3)

Used vehicle retail sales

171,004

 

144,415

 

18.4

 

21.9

Used vehicle wholesale sales

39,375

 

37,243

 

5.7

 

8.7

Total used

210,379

 

181,658

 

15.8

 

19.2

Parts and service

52,640

 

45,141

 

16.6

 

20.1

Finance, insurance and other, net

14,955

 

13,263

 

12.8

 

17.0

Total

$

524,024

 

$

507,847

 

3.2

 

6.3

GROSS MARGIN %:

             

New vehicle retail sales

5.7

 

5.7

       

Used vehicle retail sales

4.5

 

4.6

       

Used vehicle wholesale sales

(1.3)

 

(0.9)

       

Total used

3.4

 

3.5

       

Parts and service

54.8

 

56.6

       

Finance, insurance and other, net

100.0

 

100.0

       

Total

12.4

 

11.9

       

GROSS PROFIT:

             

New vehicle retail sales

$

14,033

 

$

15,231

 

(7.9)

 

(4.2)

Used vehicle retail sales

7,610

 

6,696

 

13.6

 

16.8

Used vehicle wholesale sales

(516)

 

(322)

 

(60.2)

 

(66.2)

Total used

7,094

 

6,374

 

11.3

 

14.3

Parts and service

28,843

 

25,559

 

12.8

 

16.2

Finance, insurance and other, net

14,955

 

13,263

 

12.8

 

17.0

Total

$

64,925

 

$

60,427

 

7.4

 

11.1

UNITS SOLD:

             

Retail new vehicles sold

8,019

 

8,750

 

(8.4)

   

Retail used vehicles sold

7,148

 

6,188

 

15.5

   

Wholesale used vehicles sold

4,742

 

5,089

 

(6.8)

   

Total used

11,890

 

11,277

 

5.4

   

AVERAGE RETAIL SALES PRICE:

             

New vehicle retail

$

30,683

 

$

30,604

 

0.3

 

3.3

Used vehicle retail

$

23,923

 

$

23,338

 

2.5

 

5.5

GROSS PROFIT PER UNIT SOLD:

             

New vehicle retail sales

$

1,750

 

$

1,741

 

0.5

 

4.5

Used vehicle retail sales

1,065

 

1,082

 

(1.6)

 

1.1

Used vehicle wholesale sales

(109)

 

(63)

 

(73.0)

 

(78.3)

Total used

597

 

565

 

5.7

 

8.4

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

$

986

 

$

888

 

11.0

 

15.3

OTHER:

             

SG&A expenses

$

58,845

 

$

54,095

 

8.8

 

12.3

SG&A as % revenues

11.2

 

10.7

       

SG&A as % gross profit

90.6

 

89.5

       

Operating margin %

0.4

 

0.8

       

Adjusted operating margin % (1)

0.5

 

0.8

       

Pretax margin %

(0.2)

 

0.3

       

Adjusted pretax margin % (1)

(0.1)

 

0.3

       

INTEREST EXPENSE:

             

Floorplan interest expense

$

(1,635)

 

$

(1,304)

 

25.4

 

29.5

Floorplan assistance

141

 

237

 

(40.5)

 

(38.6)

Net floorplan expense

$

(1,494)

 

$

(1,067)

 

40.0

 

44.6

Other interest expense, net

$

(1,782)

 

$

(1,278)

 

39.4

 

43.9

 

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

 

Group 1 Automotive, Inc.

Additional Information - U.K.

(Unaudited)

(Dollars in thousands, except per unit amounts)

               
 

Twelve Months Ended December 31,

 

2018

 

2017

 

% Increase/
(Decrease)

 

Constant Currency (1)
% Increase/(Decrease)

REVENUES:

             

New vehicle retail sales

$

1,217,135

 

$

1,092,612

 

11.4

 

7.3

Used vehicle retail sales

771,719

 

546,266

 

41.3

 

36.5

Used vehicle wholesale sales

173,783

 

136,847

 

27.0

 

22.6

Total used

945,502

 

683,113

 

38.4

 

33.7

Parts and service

217,594

 

165,755

 

31.3

 

26.9

Finance, insurance and other, net

57,154

 

44,523

 

28.4

 

24.7

Total

$

2,437,385

 

$

1,986,003

 

22.7

 

18.4

GROSS MARGIN %:

             

New vehicle retail sales

5.2

 

5.5

       

Used vehicle retail sales

5.0

 

4.8

       

Used vehicle wholesale sales

(1.6)

 

(0.9)

       

Total used

3.8

 

3.7

       

Parts and service

56.5

 

57.3

       

Finance, insurance and other, net

100.0

 

100.0

       

Total

11.5

 

11.3

       

GROSS PROFIT:

             

New vehicle retail sales

$

63,579

 

$

60,581

 

4.9

 

1.6

Used vehicle retail sales

38,898

 

26,275

 

48.0

 

42.9

Used vehicle wholesale sales

(2,704)

 

(1,173)

 

(130.5)

 

(127.1)

Total used

36,194

 

25,102

 

44.2

 

38.9

Parts and service

122,975

 

95,047

 

29.4

 

25.1

Finance, insurance and other, net

57,154

 

44,523

 

28.4

 

24.7

Total

$

279,902

 

$

225,253

 

24.3

 

20.3

UNITS SOLD:

             

Retail new vehicles sold

38,716

 

36,571

 

5.9

   

Retail used vehicles sold

31,966

 

24,623

 

29.8

   

Wholesale used vehicles sold

21,666

 

18,334

 

18.2

   

Total used

53,632

 

42,957

 

24.9

   

AVERAGE RETAIL SALES PRICE:

             

New vehicle retail

$

31,438

 

$

29,876

 

5.2

 

1.4

Used vehicle retail

$

24,142

 

$

22,185

 

8.8

 

5.2

GROSS PROFIT PER UNIT SOLD:

             

New vehicle retail sales

$

1,642

 

$

1,657

 

(0.9)

 

(4.0)

Used vehicle retail sales

1,217

 

1,067

 

14.1

 

10.0

Used vehicle wholesale sales

(125)

 

(64)

 

(95.3)

 

(92.2)

Total used

675

 

584

 

15.6

 

11.3

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

$

809

 

$

728

 

11.1

 

8.0

OTHER:

             

SG&A expenses

$

240,403

 

$

191,570

 

25.5

 

21.4

Adjusted SG&A expenses (1)

$

240,403

 

$

191,282

 

25.7

 

21.6

SG&A as % revenues

9.9

 

9.6

       

Adjusted SG&A as % revenues (1)

9.9

 

9.6

       

SG&A as % gross profit

85.9

 

85.0

       

Adjusted SG&A as % gross profit (1)

85.9

 

84.9

       

Operating margin %

1.1

 

1.3

       

Adjusted operating margin % (1)

1.1

 

1.3

       

Pretax margin %

0.5

 

0.9

       

Adjusted pretax margin % (1)

0.6

 

0.9

       

INTEREST EXPENSE:

             

Floorplan interest expense

$

(6,322)

 

$

(4,727)

 

33.7

 

29.6

Floorplan assistance

965

 

951

 

1.5

 

(2.3)

Net floorplan expense

$

(5,357)

 

$

(3,776)

 

41.9

 

37.7

Other interest expense, net

$

(6,797)

 

$

(3,664)

 

85.5

 

80.7

 

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

 

Group 1 Automotive, Inc.

Additional Information - Brazil

(Unaudited)

(Dollars in thousands, except per unit amounts)

               
 

Three Months Ended December 31,

 

2018

 

2017

 

% Increase/
(Decrease)

 

Constant Currency (2)
% Increase/(Decrease)

REVENUES:

             

New vehicle retail sales

$

77,229

 

$

82,947

 

(6.9)

 

9.1

Used vehicle retail sales

21,087

 

24,129

 

(12.6)

 

2.4

Used vehicle wholesale sales

5,344

 

4,282

 

24.8

 

46.5

Total used

26,431

 

28,411

 

(7.0)

 

9.1

Parts and service

11,584

 

11,761

 

(1.5)

 

15.4

Finance, insurance and other, net

3,004

 

2,242

 

34.0

 

56.9

Total

$

118,248

 

$

125,361

 

(5.7)

 

10.5

GROSS MARGIN %:

             

New vehicle retail sales

6.4

 

5.8

       

Used vehicle retail sales

6.1

 

7.8

       

Used vehicle wholesale sales

5.0

 

4.4

       

Total used

5.9

 

7.3

       

Parts and service

44.6

 

45.9

       

Finance, insurance and other, net

100.0

 

100.0

       

Total

12.4

 

11.6

       

GROSS PROFIT:

             

New vehicle retail sales

$

4,938

 

$

4,849

 

1.8

 

19.0

Used vehicle retail sales

1,282

 

1,887

 

(32.1)

 

(20.4)

Used vehicle wholesale sales

265

 

189

 

40.2

 

64.6

Total used

1,547

 

2,076

 

(25.5)

 

(12.7)

Parts and service

5,172

 

5,403

 

(4.3)

 

12.2

Finance, insurance and other, net

3,004

 

2,242

 

34.0

 

56.9

Total

$

14,661

 

$

14,570

 

0.6

 

17.8

UNITS SOLD:

             

Retail new vehicles sold

2,499

 

2,355

 

6.1

   

Retail used vehicles sold

1,064

 

1,092

 

(2.6)

   

Wholesale used vehicles sold

515

 

290

 

77.6

   

Total used

1,579

 

1,382

 

14.3

   

AVERAGE RETAIL SALES PRICE:

             

New vehicle retail

$

30,904

 

$

35,222

 

(12.3)

 

2.8

Used vehicle retail

$

19,819

 

$

22,096

 

(10.3)

 

5.1

GROSS PROFIT PER UNIT SOLD:

             

New vehicle retail sales

$

1,976

 

$

2,059

 

(4.0)

 

12.2

Used vehicle retail sales

1,205

 

1,728

 

(30.3)

 

(18.3)

Used vehicle wholesale sales

515

 

652

 

(21.0)

 

(7.3)

Total used

980

 

1,502

 

(34.8)

 

(23.6)

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

$

843

 

$

650

 

29.7

 

51.8

OTHER:

             

SG&A expenses

$

12,368

 

$

13,356

 

(7.4)

 

8.5

Adjusted SG&A expenses (1)

$

12,368

 

$

12,881

 

(4.0)

 

12.6

SG&A as % revenues

10.5

 

10.7

       

Adjusted SG&A as % revenues (1)

10.5

 

10.3

       

SG&A as % gross profit

84.4

 

91.7

       

Adjusted SG&A as % gross profit (1)

84.4

 

88.4

       

Operating margin %

1.6

 

(4.7)

       

Adjusted operating margin % (1)

1.6

 

1.1

       

Pretax margin %

1.3

 

(4.9)

       

Adjusted pretax margin % (1)

1.3

 

0.9

       

INTEREST EXPENSE:

             

Floorplan interest expense

$

(189)

 

$

(142)

 

33.1

 

55.4

Floorplan assistance

 

 

 

Net floorplan expense

$

(189)

 

$

(142)

 

33.1

 

55.4

Other interest expense, net

$

(178)

 

$

(109)

 

63.3

 

90.0

 

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

 

Group 1 Automotive, Inc.

Additional Information - Brazil

(Unaudited)

(Dollars in thousands, except per unit amounts)

                   
 

Twelve Months Ended December 31,

 

2018

 

2017

 

% Increase/
(Decrease)

 

Constant Currency (1)
% Increase/(Decrease)

REVENUES:

             

New vehicle retail sales

$

281,416

 

$

296,055

 

(4.9)

 

8.5

Used vehicle retail sales

87,352

 

92,021

 

(5.1)

 

7.9

Used vehicle wholesale sales

16,882

 

12,655

 

33.4

 

53.9

Total used

104,234

 

104,676

 

(0.4)

 

13.4

Parts and service

46,038

 

47,897

 

(3.9)

 

9.7

Finance, insurance and other, net

9,028

 

8,525

 

5.9

 

22.0

Total

$

440,716

 

$

457,153

 

(3.6)

 

10.0

GROSS MARGIN %:

             

New vehicle retail sales

6.5

 

5.8

       

Used vehicle retail sales

6.1

 

7.3

       

Used vehicle wholesale sales

3.8

 

6.8

       

Total used

5.7

 

7.3

       

Parts and service

44.9

 

45.2

       

Finance, insurance and other, net

100.0

 

100.0

       

Total

12.2

 

12.0

       

GROSS PROFIT:

             

New vehicle retail sales

$

18,232

 

$

17,138

 

6.4

 

22.4

Used vehicle retail sales

5,323

 

6,751

 

(21.2)

 

(10.4)

Used vehicle wholesale sales

648

 

858

 

(24.5)

 

(13.0)

Total used

5,971

 

7,609

 

(21.5)

 

(10.7)

Parts and service

20,654

 

21,670

 

(4.7)

 

8.7

Finance, insurance and other, net

9,028

 

8,525

 

5.9

 

22.0

Total

$

53,885

 

$

54,942

 

(1.9)

 

12.3

UNITS SOLD:

             

Retail new vehicles sold

8,928

 

8,488

 

5.2

   

Retail used vehicles sold

4,227

 

4,140

 

2.1

   

Wholesale used vehicles sold

1,596

 

1,148

 

39.0

   

Total used

5,823

 

5,288

 

10.1

   

AVERAGE RETAIL SALES PRICE:

             

New vehicle retail

$

31,521

 

$

34,879

 

(9.6)

 

3.2

Used vehicle retail

$

20,665

 

$

22,227

 

(7.0)

 

5.6

GROSS PROFIT PER UNIT SOLD:

             

New vehicle retail sales

$

2,042

 

$

2,019

 

1.1

 

16.3

Used vehicle retail sales

1,259

 

1,631

 

(22.8)

 

(12.3)

Used vehicle wholesale sales

406

 

747

 

(45.6)

 

(37.4)

Total used

1,025

 

1,439

 

(28.8)

 

(18.9)

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

$

686

 

$

675

 

1.6

 

17.1

OTHER:

             

SG&A expenses

$

50,590

 

$

50,651

 

(0.1)

 

15.0

Adjusted SG&A expenses (1)

$

46,920

 

$

50,176

 

(6.5)

 

6.9

SG&A as % revenues

11.5

 

11.1

       

Adjusted SG&A as % revenues (1)

10.6

 

11.0

       

SG&A as % gross profit

93.9

 

92.2

       

Adjusted SG&A as % gross profit (1)

87.1

 

91.3

       

Operating margin %

0.4

 

(0.9)

       

Adjusted operating margin % (1)

1.2

 

0.7

       

Pretax margin %

 

(1.0)

       

Adjusted pretax margin % (1)

0.8

 

0.6

       

INTEREST EXPENSE:

             

Floorplan interest expense

$

(787)

 

$

(424)

 

85.6

 

110.6

Floorplan assistance

 

 

 

Net floorplan expense

$

(787)

 

$

(424)

 

85.6

 

110.6

Other interest expense, net

$

(916)

 

$

(340)

 

169.4

 

199.6

 

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

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

(Dollars in thousands, except per unit amounts)

                   
 

Three Months Ended December 31,

 

2018

 

2017

 

% Increase/
(Decrease)

 

Constant Currency (1)
% Increase/(Decrease)

REVENUES:

             

New vehicle retail sales

$

1,572,713

 

$

1,661,309

 

(5.3)

 

(4.1)

Used vehicle retail sales

771,242

 

709,072

 

8.8

 

10.0

Used vehicle wholesale sales

86,122

 

91,809

 

(6.2)

 

(4.0)

Total used

857,364

 

800,881

 

7.1

 

8.4

Parts and service

354,744

 

343,510

 

3.3

 

4.3

Finance, insurance and other, net

123,991

 

114,705

 

8.1

 

9.0

Total

$

2,908,812

 

$

2,920,405

 

(0.4)

 

0.8

GROSS MARGIN %:

             

New vehicle retail sales

5.2

 

5.4

       

Used vehicle retail sales

5.3

 

5.7

       

Used vehicle wholesale sales

0.1

 

(2.6)

       

Total used

4.8

 

4.8

       

Parts and service

52.3

 

53.4

       

Finance, insurance and other, net

100.0

 

100.0

       

Total

14.9

 

14.6

       

GROSS PROFIT:

             

New vehicle retail sales

$

81,258

 

$

89,535

 

(9.2)

 

(7.7)

Used vehicle retail sales

41,064

 

40,514

 

1.4

 

2.4

Used vehicle wholesale sales

113

 

(2,390)

 

104.7

 

105.9

Total used

41,177

 

38,124

 

8.0

 

9.2

Parts and service

185,640

 

183,311

 

1.3

 

2.2

Finance, insurance and other, net

123,991

 

114,705

 

8.1

 

9.0

Total

$

432,066

 

$

425,675

 

1.5

 

2.6

UNITS SOLD:

             

Retail new vehicles sold

42,272

 

44,713

 

(5.5)

   

Retail used vehicles sold

36,099

 

32,015

 

12.8

   

Wholesale used vehicles sold

12,089

 

13,573

 

(10.9)

   

Total used

48,188

 

45,588

 

5.7

   

AVERAGE RETAIL SALES PRICE:

             

New vehicle retail

$

37,205

 

$

37,155

 

0.1

 

1.5

Used vehicle retail

$

21,365

 

$

22,148

 

(3.5)

 

(2.5)

GROSS PROFIT PER UNIT SOLD:

             

New vehicle retail sales

$

1,922

 

$

2,002

 

(4.0)

 

(2.4)

Used vehicle retail sales

1,138

 

1,265

 

(10.0)

 

(9.2)

Used vehicle wholesale sales

9

 

(176)

 

105.1

 

106.6

Total used

855

 

836

 

2.3

 

3.3

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

$

1,582

 

$

1,495

 

5.8

 

6.8

OTHER:

             

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

$

122,916

 

$

114,705

 

7.2

 

8.1

Adjusted Total revenue (1)

$

2,907,737

 

$

2,920,405

 

(0.4)

 

0.8

Adjusted Total gross profit (1)

$

430,991

 

$

425,675

 

1.2

 

2.3

Adjusted Total gross margin (1)

14.8

 

14.6

       

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

$

1,568

 

$

1,495

 

4.9

 

5.8

SG&A expenses

$

323,847

 

$

309,521

 

4.6

 

5.9

Adjusted SG&A expenses (1)

$

322,233

 

$

309,046

 

4.3

 

5.6

SG&A as % revenues

11.1

 

10.6

       

Adjusted SG&A as % revenues (1)

11.1

 

10.6

       

SG&A as % gross profit

75.0

 

72.7

       

Adjusted SG&A as % gross profit (1)

74.8

 

72.6

       

Operating margin %

2.6

 

3.1

       

Adjusted operating margin % (1)

3.2

 

3.5

       

Pretax margin %

1.4

 

2.0

       

Adjusted pretax margin % (1)

1.9

 

2.4

       

INTEREST EXPENSE:

             

Floorplan interest expense

$

(16,547)

 

$

(13,713)

 

20.7

 

21.3

Floorplan assistance

12,761

 

13,189

 

(3.2)

 

(3.2)

Net floorplan expense

$

(3,786)

 

$

(524)

 

622.5

 

638.1

Other interest expense, net

$

(18,424)

 

$

(18,309)

 

(0.6)

 

1.1

 

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

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

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

(Dollars in thousands, except per unit amounts)

   
 

Twelve Months Ended December 31,

 

2018

 

2017

 

% Increase/
(Decrease)

 

Constant Currency (1)
% Increase/(Decrease)

REVENUES:

             

New vehicle retail sales

$

6,181,371

 

$

6,157,531

 

0.4

 

0.3

Used vehicle retail sales

3,166,070

 

2,798,986

 

13.1

 

12.6

Used vehicle wholesale sales

369,575

 

400,170

 

(7.6)

 

(8.5)

Total used

3,535,645

 

3,199,156

 

10.5

 

10.0

Parts and service

1,416,889

 

1,338,032

 

5.9

 

5.8

Finance, insurance and other, net

467,453

 

429,002

 

9.0

 

8.9

Total

$

11,601,358

 

$

11,123,721

 

4.3

 

4.1

GROSS MARGIN %:

             

New vehicle retail sales

5.0

 

5.2

       

Used vehicle retail sales

5.9

 

6.3

       

Used vehicle wholesale sales

0.5

 

(0.7)

       

Total used

5.3

 

5.5

       

Parts and service

53.6

 

53.8

       

Finance, insurance and other, net

100.0

 

100.0

       

Total

14.9

 

14.8

       

GROSS PROFIT:

             

New vehicle retail sales

$

310,869

 

$

322,005

 

(3.5)

 

(3.2)

Used vehicle retail sales

185,928

 

177,555

 

4.7

 

4.4

Used vehicle wholesale sales

1,695

 

(2,742)

 

161.8

 

166.9

Total used

187,623

 

174,813

 

7.3

 

7.0

Parts and service

759,148

 

719,689

 

5.5

 

5.3

Finance, insurance and other, net

467,453

 

429,002

 

9.0

 

8.9

Total

$

1,725,093

 

$

1,645,509

 

4.8

 

4.8

UNITS SOLD:

             

Retail new vehicles sold

170,517

 

172,200

 

(1.0)

   

Retail used vehicles sold

147,999

 

129,933

 

13.9

   

Wholesale used vehicles sold

53,887

 

57,144

 

(5.7)

   

Total used

201,886

 

187,077

 

7.9

   

AVERAGE RETAIL SALES PRICE:

             

New vehicle retail

$

36,251

 

$

35,758

 

1.4

 

1.3

Used vehicle retail

$

21,393

 

$

21,542

 

(0.7)

 

(1.1)

GROSS PROFIT PER UNIT SOLD:

             

New vehicle retail sales

$

1,823

 

$

1,870

 

(2.5)

 

(2.3)

Used vehicle retail sales

1,256

 

1,367

 

(8.1)

 

(8.4)

Used vehicle wholesale sales

31

 

(48)

 

164.6

 

171.0

Total used

929

 

934

 

(0.5)

 

(0.8)

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

$

1,468

 

$

1,420

 

3.4

 

3.3

OTHER:

             

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

$

466,378

 

$

435,552

 

7.1

 

7.0

Adjusted Total revenue (1)

$

11,600,283

 

$

11,130,271

 

4.2

 

4.0

Adjusted Total gross profit (1)

$

1,724,018

 

$

1,652,059

 

4.4

 

4.3

Adjusted Total gross margin (1)

14.9

 

14.8

       

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

$

1,464

 

$

1,442

 

1.5

 

1.5

SG&A expenses

$

1,273,057

 

$

1,226,195

 

3.8

 

3.8

Adjusted SG&A expenses (1)

$

1,286,871

 

$

1,216,955

 

5.7

 

5.7

SG&A as % revenues

11.0

 

11.0

       

Adjusted SG&A as % revenues (1)

11.1

 

10.9

       

SG&A as % gross profit

73.8

 

74.5

       

Adjusted SG&A as % gross profit (1)

74.6

 

73.7

       

Operating margin %

2.9

 

3.1

       

Adjusted operating margin % (1)

3.2

 

3.4

       

Pretax margin %

1.8

 

2.0

       

Adjusted pretax margin % (1)

2.0

 

2.3

       

INTEREST EXPENSE:

             

Floorplan interest expense

$

(59,882)

 

$

(52,372)

 

14.3

 

14.2

Floorplan assistance

47,277

 

48,935

 

(3.4)

 

(3.5)

Net floorplan expense

$

(12,605)

 

$

(3,437)

 

266.7

 

265.1

Other interest expense, net

$

(75,798)

 

$

(70,497)

 

7.5

 

7.4

 

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

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

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)

           
 

Three Months Ended December 31,

 

2018

 

2017

 

% Increase/
(Decrease)

REVENUES:

         

New vehicle retail sales

$

1,219,825

 

$

1,286,220

 

(5.2)

Used vehicle retail sales

564,987

 

531,511

 

6.3

Used vehicle wholesale sales

40,580

 

49,224

 

(17.6)

Total used

605,567

 

580,735

 

4.3

Parts and service

287,610

 

281,730

 

2.1

Finance, insurance and other, net

103,412

 

97,593

 

6.0

Total

$

2,216,414

 

$

2,246,278

 

(1.3)

GROSS MARGIN %:

         

New vehicle retail sales

5.0

 

5.3

   

Used vehicle retail sales

5.6

 

5.9

   

Used vehicle wholesale sales

0.9

 

(4.5)

   

Total used

5.2

 

5.0

   

Parts and service

52.1

 

53.2

   

Finance, insurance and other, net

100.0

 

100.0

   

Total

15.6

 

15.3

   

GROSS PROFIT:

         

New vehicle retail sales

$

60,834

 

$

67,832

 

(10.3)

Used vehicle retail sales

31,373

 

31,391

 

(0.1)

Used vehicle wholesale sales

352

 

(2,191)

 

116.1

Total used

31,725

 

29,200

 

8.6

Parts and service

149,750

 

149,765

 

Finance, insurance and other, net

103,412

 

97,593

 

6.0

Total

$

345,721

 

$

344,390

 

0.4

UNITS SOLD:

         

Retail new vehicles sold

30,835

 

33,117

 

(6.9)

Retail used vehicles sold

27,097

 

24,397

 

11.1

Wholesale used vehicles sold

6,627

 

8,083

 

(18.0)

Total used

33,724

 

32,480

 

3.8

AVERAGE RETAIL SALES PRICE:

         

New vehicle retail

$

39,560

 

$

38,839

 

1.9

Used vehicle retail

$

20,851

 

$

21,786

 

(4.3)

GROSS PROFIT PER UNIT SOLD:

         

New vehicle retail sales

$

1,973

 

$

2,048

 

(3.7)

Used vehicle retail sales

1,158

 

1,287

 

(10.0)

Used vehicle wholesale sales

53

 

(271)

 

119.6

Total used

941

 

899

 

4.7

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

$

1,785

 

$

1,697

 

5.2

OTHER:

         

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

$

102,337

 

$

97,593

 

4.9

Adjusted Total revenue (2)

$

2,215,339

 

$

2,246,278

 

(1.4)

Adjusted Total gross profit (2)

$

344,646

 

$

344,390

 

0.1

Adjusted Total gross margin (2)

15.6

 

15.3

   

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

$

1,767

 

$

1,697

 

4.1

SG&A expenses

$

243,619

 

$

237,470

 

2.6

Adjusted SG&A expenses (2)

$

242,332

 

$

237,470

 

2.0

SG&A as % revenues

11.0

 

10.6

   

Adjusted SG&A as % revenues (2)

10.9

 

10.6

   

SG&A as % gross profit

70.5

 

69.0

   

Adjusted SG&A as % gross profit (2)

70.3

 

69.0

   

Operating margin %

3.3

 

4.2

   

Adjusted operating margin % (2)

4.0

 

4.2

   
 

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

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

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

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)

           
 

Twelve Months Ended December 31,

 

2018

 

2017

 

% Increase/
(Decrease)

REVENUES:

         

New vehicle retail sales

$

4,577,539

 

$

4,722,200

 

(3.1)

Used vehicle retail sales

2,255,446

 

2,141,315

 

5.3

Used vehicle wholesale sales

173,968

 

247,852

 

(29.8)

Total used

2,429,414

 

2,389,167

 

1.7

Parts and service

1,137,841

 

1,113,635

 

2.2

Finance, insurance and other, net

391,730

 

371,932

 

5.3

Total

$

8,536,524

 

$

8,596,934

 

(0.7)

GROSS MARGIN %:

         

New vehicle retail sales

4.9

 

5.1

   

Used vehicle retail sales

6.1

 

6.7

   

Used vehicle wholesale sales

2.2

 

(1.0)

   

Total used

5.9

 

5.9

   

Parts and service

53.3

 

53.6

   

Finance, insurance and other, net

100.0

 

100.0

   

Total

16.0

 

15.7

   

GROSS PROFIT:

         

New vehicle retail sales

$

223,295

 

$

241,341

 

(7.5)

Used vehicle retail sales

138,623

 

143,287

 

(3.3)

Used vehicle wholesale sales

3,747

 

(2,411)

 

255.4

Total used

142,370

 

140,876

 

1.1

Parts and service

606,405

 

597,184

 

1.5

Finance, insurance and other, net

391,730

 

371,932

 

5.3

Total

$

1,363,800

 

$

1,351,333

 

0.9

UNITS SOLD:

         

Retail new vehicles sold

120,090

 

126,205

 

(4.8)

Retail used vehicles sold

109,332

 

100,475

 

8.8

Wholesale used vehicles sold

29,915

 

37,383

 

(20.0)

Total used

139,247

 

137,858

 

1.0

AVERAGE RETAIL SALES PRICE:

         

New vehicle retail

$

38,118

 

$

37,417

 

1.9

Used vehicle retail

$

20,629

 

$

21,312

 

(3.2)

GROSS PROFIT PER UNIT SOLD:

         

New vehicle retail sales

$

1,859

 

$

1,912

 

(2.8)

Used vehicle retail sales

1,268

 

1,426

 

(11.1)

Used vehicle wholesale sales

125

 

(64)

 

295.3

Total used

1,022

 

1,022

 

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

$

1,707

 

$

1,641

 

4.0

OTHER:

         

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

$

390,655

 

$

378,482

 

3.2

Adjusted Total revenue (2)

$

8,535,449

 

$

8,603,484

 

(0.8)

Adjusted Total gross profit (2)

$

1,362,725

 

$

1,357,883

 

0.4

Adjusted Total gross margin (2)

16.0

 

15.8

   

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

$

1,703

 

$

1,670

 

2.0

SG&A expenses

$

979,531

 

$

973,412

 

0.6

Adjusted SG&A expenses (2)

$

974,201

 

$

964,935

 

1.0

SG&A as % revenues

11.5

 

11.3

   

Adjusted SG&A as % revenues (2)

11.4

 

11.2

   

SG&A as % gross profit

71.8

 

72.0

   

Adjusted SG&A as % gross profit (2)

71.5

 

71.1

   

Operating margin %

3.4

 

3.7

   

Adjusted operating margin % (2)

3.9

 

4.0

   
 

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

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

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

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)

               
 

Three Months Ended December 31,

 

2018

 

2017

 

% Increase/
(Decrease)

 

Constant Currency (2)
% Increase/(Decrease)

REVENUES:

             

New vehicle retail sales

$

218,569

 

$

266,779

 

(18.1)

 

(15.6)

Used vehicle retail sales

150,220

 

143,577

 

4.6

 

7.7

Used vehicle wholesale sales

36,527

 

37,013

 

(1.3)

 

1.5

Total used

186,747

 

180,590

 

3.4

 

6.4

Parts and service

46,881

 

44,619

 

5.1

 

8.2

Finance, insurance and other, net

12,449

 

13,171

 

(5.5)

 

(2.0)

Total

$

464,646

 

$

505,159

 

(8.0)

 

(5.2)

GROSS MARGIN %:

             

New vehicle retail sales

6.2

 

5.7

       

Used vehicle retail sales

4.5

 

4.6

       

Used vehicle wholesale sales

(0.9)

 

(0.9)

       

Total used

3.5

 

3.5

       

Parts and service

53.9

 

56.6

       

Finance, insurance and other, net

100.0

 

100.0

       

Total

12.4

 

11.9

       

GROSS PROFIT:

             

New vehicle retail sales

$

13,548

 

$

15,202

 

(10.9)

 

(7.3)

Used vehicle retail sales

6,824

 

6,669

 

2.3

 

5.2

Used vehicle wholesale sales

(346)

 

(325)

 

(6.5)

 

(10.9)

Total used

6,478

 

6,344

 

2.1

 

4.9

Parts and service

25,265

 

25,247

 

0.1

 

3.1

Finance, insurance and other, net

12,449

 

13,171

 

(5.5)

 

(2.0)

Total

$

57,740

 

$

59,964

 

(3.7)

 

(0.5)

UNITS SOLD:

             

Retail new vehicles sold

7,270

 

8,694

 

(16.4)

   

Retail used vehicles sold

6,246

 

6,121

 

2.0

   

Wholesale used vehicles sold

4,366

 

5,031

 

(13.2)

   

Total used

10,612

 

11,152

 

(4.8)

   

AVERAGE RETAIL SALES PRICE:

             

New vehicle retail

$

30,065

 

$

30,685

 

(2.0)

 

1.0

Used vehicle retail

$

24,051

 

$

23,456

 

2.5

 

5.6

GROSS PROFIT PER UNIT SOLD:

             

New vehicle retail sales

$

1,864

 

$

1,749

 

6.6

 

10.8

Used vehicle retail sales

1,093

 

1,090

 

0.3

 

3.1

Used vehicle wholesale sales

(79)

 

(65)

 

(21.5)

 

(27.8)

Total used

610

 

569

 

7.2

 

10.2

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

$

921

 

$

889

 

3.6

 

7.4

OTHER:

             

SG&A expenses

$

52,863

 

$

53,493

 

(1.2)

 

2.0

SG&A as % revenues

11.4

 

10.6

       

SG&A as % gross profit

91.6

 

89.2

       

Operating margin %

0.3

 

0.8

       

Adjusted operating margin % (2)

0.4

 

0.8

       
 

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

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

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)

                 
 

Twelve Months Ended December 31,

 

2018

 

2017

 

% Increase/
(Decrease)

 

Constant Currency (2)
% Increase/(Decrease)

REVENUES:

             

New vehicle retail sales

$

978,873

 

$

1,073,144

 

(8.8)

 

(11.9)

Used vehicle retail sales

612,307

 

532,469

 

15.0

 

11.4

Used vehicle wholesale sales

144,303

 

133,483

 

8.1

 

4.6

Total used

756,610

 

665,952

 

13.6

 

10.0

Parts and service

177,079

 

161,723

 

9.5

 

6.1

Finance, insurance and other, net

45,788

 

43,584

 

5.1

 

2.2

Total

$

1,958,350

 

$

1,944,403

 

0.7

 

(2.6)

GROSS MARGIN %:

             

New vehicle retail sales

5.6

 

5.6

       

Used vehicle retail sales

5.0

 

4.9

       

Used vehicle wholesale sales

(1.3)

 

(0.8)

       

Total used

3.8

 

3.8

       

Parts and service

56.1

 

57.4

       

Finance, insurance and other, net

100.0

 

100.0

       

Total

11.7

 

11.4

       

GROSS PROFIT:

             

New vehicle retail sales

$

54,607

 

$

59,827

 

(8.7)

 

(11.4)

Used vehicle retail sales

30,387

 

26,072

 

16.6

 

12.6

Used vehicle wholesale sales

(1,947)

 

(1,089)

 

(78.8)

 

(75.7)

Total used

28,440

 

24,983

 

13.8

 

9.9

Parts and service

99,375

 

92,842

 

7.0

 

3.7

Finance, insurance and other, net

45,788

 

43,584

 

5.1

 

2.2

Total

$

228,210

 

$

221,236

 

3.2

 

UNITS SOLD:

             

Retail new vehicles sold

31,777

 

35,751

 

(11.1)

   

Retail used vehicles sold

25,090

 

23,940

 

4.8

   

Wholesale used vehicles sold

17,883

 

17,871

 

0.1

   

Total used

42,973

 

41,811

 

2.8

   

AVERAGE RETAIL SALES PRICE:

             

New vehicle retail

$

30,804

 

$

30,017

 

2.6

 

(0.9)

Used vehicle retail

$

24,404

 

$

22,242

 

9.7

 

6.3

GROSS PROFIT PER UNIT SOLD:

             

New vehicle retail sales

$

1,718

 

$

1,673

 

2.7

 

(0.3)

Used vehicle retail sales

1,211

 

1,089

 

11.2

 

7.5

Used vehicle wholesale sales

(109)

 

(61)

 

(78.7)

 

(75.6)

Total used

662

 

598

 

10.7

 

6.9

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

$

805

 

$

730

 

10.3

 

7.3

OTHER:

             

SG&A expenses

$

196,899

 

$

186,160

 

5.8

 

2.6

Adjusted SG&A expenses (2)

$

196,899

 

$

185,872

 

5.9

 

2.7

SG&A as % revenues

10.1

 

9.6

       

Adjusted SG&A as % revenues (2)

10.1

 

9.6

       

SG&A as % gross profit

86.3

 

84.1

       

Adjusted SG&A as % gross profit (2)

86.3

 

84.0

       

Operating margin %

1.0

 

1.4

       

Adjusted operating margin % (2)

1.1

 

1.4

       
 

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

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

 

Group 1 Automotive, Inc.

Additional Information - Same Store Brazil (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)

               
 

Three Months Ended December 31,

 

2018

 

2017

 

% Increase/
(Decrease)

 

Constant Currency (2)
% Increase/(Decrease)

REVENUES:

             

New vehicle retail sales

$

70,923

 

$

82,946

 

(14.5)

 

0.2

Used vehicle retail sales

19,845

 

24,129

 

(17.8)

 

(3.6)

Used vehicle wholesale sales

5,096

 

4,281

 

19.0

 

39.6

Total used

24,941

 

28,410

 

(12.2)

 

2.9

Parts and service

11,003

 

11,762

 

(6.5)

 

9.6

Finance, insurance and other, net

2,763

 

2,243

 

23.2

 

44.2

Total

$

109,630

 

$

125,361

 

(12.5)

 

2.5

GROSS MARGIN %:

             

New vehicle retail sales

6.5

 

5.8

       

Used vehicle retail sales

6.2

 

7.8

       

Used vehicle wholesale sales

5.1

 

4.4

       

Total used

6.0

 

7.3

       

Parts and service

44.1

 

45.9

       

Finance, insurance and other, net

100.0

 

100.0

       

Total

12.5

 

11.6

       

GROSS PROFIT:

             

New vehicle retail sales

$

4,637

 

$

4,849

 

(4.4)

 

11.8

Used vehicle retail sales

1,240

 

1,887

 

(34.3)

 

(23.0)

Used vehicle wholesale sales

258

 

188

 

37.2

 

60.7

Total used

1,498

 

2,075

 

(27.8)

 

(15.4)

Parts and service

4,854

 

5,404

 

(10.2)

 

5.3

Finance, insurance and other, net

2,763

 

2,243

 

23.2

 

44.2

Total

$

13,752

 

$

14,571

 

(5.6)

 

10.5

UNITS SOLD:

             

Retail new vehicles sold

2,253

 

2,355

 

(4.3)

   

Retail used vehicles sold

1,004

 

1,091

 

(8.0)

   

Wholesale used vehicles sold

457

 

290

 

57.6

   

Total used

1,461

 

1,381

 

5.8

   

AVERAGE RETAIL SALES PRICE:

             

New vehicle retail

$

31,479

 

$

35,221

 

(10.6)

 

4.7

Used vehicle retail

$

19,766

 

$

22,116

 

(10.6)

 

4.8

GROSS PROFIT PER UNIT SOLD:

             

New vehicle retail sales

$

2,058

 

$

2,059

 

 

16.8

Used vehicle retail sales

1,235

 

1,730

 

(28.6)

 

(16.4)

Used vehicle wholesale sales

565

 

648

 

(12.8)

 

1.9

Total used

1,025

 

1,503

 

(31.8)

 

(20.1)

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

$

848

 

$

651

 

30.3

 

52.6

OTHER:

             

SG&A expenses

$

11,472

 

$

13,459

 

(14.8)

 

(0.1)

Adjusted SG&A expenses (2)

$

11,472

 

$

12,984

 

(11.6)

 

3.6

SG&A as % revenues

10.5

 

10.7

       

Adjusted SG&A as % revenues (2)

10.5

 

10.4

       

SG&A as % gross profit

83.4

 

92.4

       

Adjusted SG&A as % gross profit (2)

83.4

 

89.1

       

Operating margin %

1.7

 

(4.8)

       

Adjusted operating margin % (2)

1.7

 

1.0

       
 

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

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

 

Group 1 Automotive, Inc.

Additional Information - Same Store Brazil (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)

                 
 

Twelve Months Ended December 31,

 

2018

 

2017

 

% Increase/
(Decrease)

 

Constant Currency (2)
% Increase/(Decrease)

REVENUES:

             

New vehicle retail sales

$

267,261

 

$

293,820

 

(9.0)

 

3.6

Used vehicle retail sales

84,985

 

90,210

 

(5.8)

 

6.9

Used vehicle wholesale sales

16,441

 

12,638

 

30.1

 

49.8

Total used

101,426

 

102,848

 

(1.4)

 

12.2

Parts and service

44,596

 

47,242

 

(5.6)

 

7.5

Finance, insurance and other, net

8,630

 

8,285

 

4.2

 

19.7

Total

$

421,913

 

$

452,195

 

(6.7)

 

6.2

GROSS MARGIN %:

             

New vehicle retail sales

6.6

 

5.8

       

Used vehicle retail sales

6.2

 

7.4

       

Used vehicle wholesale sales

3.8

 

6.8

       

Total used

5.8

 

7.4

       

Parts and service

44.5

 

45.7

       

Finance, insurance and other, net

100.0

 

100.0

       

Total

12.3

 

12.0

       

GROSS PROFIT:

             

New vehicle retail sales

$

17,516

 

$

17,044

 

2.8

 

18.0

Used vehicle retail sales

5,252

 

6,708

 

(21.7)

 

(11.1)

Used vehicle wholesale sales

630

 

857

 

(26.5)

 

(15.6)

Total used

5,882

 

7,565

 

(22.2)

 

(11.6)

Parts and service

19,844

 

21,584

 

(8.1)

 

4.6

Finance, insurance and other, net

8,630

 

8,285

 

4.2

 

19.7

Total

$

51,872

 

$

54,478

 

(4.8)

 

8.9

UNITS SOLD:

             

Retail new vehicles sold

8,369

 

8,390

 

(0.3)

   

Retail used vehicles sold

4,098

 

4,094

 

0.1

   

Wholesale used vehicles sold

1,487

 

1,038

 

43.3

   

Total used

5,585

 

5,132

 

8.8

   

AVERAGE RETAIL SALES PRICE:

             

New vehicle retail

$

31,935

 

$

35,020

 

(8.8)

 

3.8

Used vehicle retail

$

20,738

 

$

22,035

 

(5.9)

 

6.8

GROSS PROFIT PER UNIT SOLD:

             

New vehicle retail sales

$

2,093

 

$

2,031

 

3.1

 

18.3

Used vehicle retail sales

1,282

 

1,638

 

(21.7)

 

(11.2)

Used vehicle wholesale sales

424

 

826

 

(48.7)

 

(41.1)

Total used

1,053

 

1,474

 

(28.6)

 

(18.8)

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

$

692

 

$

664

 

4.2

 

19.9

OTHER:

             

SG&A expenses

$

48,050

 

$

49,599

 

(3.1)

 

11.3

Adjusted SG&A expenses (2)

$

45,116

 

$

49,124

 

(8.2)

 

4.8

SG&A as % revenues

11.4

 

11.0

       

Adjusted SG&A as % revenues (2)

10.7

 

10.9

       

SG&A as % gross profit

92.6

 

91.0

       

Adjusted SG&A as % gross profit (2)

87.0

 

90.2

       

Operating margin %

0.5

 

(0.7)

       

Adjusted operating margin % (2)

1.2

 

0.9

       
 

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

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

 

Group 1 Automotive, Inc.

Additional Information - Same Store Consolidated (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)

               
 

Three Months Ended December 31,

 

2018

 

2017

 

% Increase/
(Decrease)

 

Constant Currency (2)
% Increase/(Decrease)

REVENUES:

             

New vehicle retail sales

$

1,509,317

 

$

1,635,945

 

(7.7)

 

(6.6)

Used vehicle retail sales

735,052

 

699,217

 

5.1

 

6.2

Used vehicle wholesale sales

82,203

 

90,518

 

(9.2)

 

(7.1)

Total used

817,255

 

789,735

 

3.5

 

4.7

Parts and service

345,494

 

338,111

 

2.2

 

3.2

Finance, insurance and other, net

118,624

 

113,007

 

5.0

 

5.8

Total

$

2,790,690

 

$

2,876,798

 

(3.0)

 

(1.9)

GROSS MARGIN %:

             

New vehicle retail sales

5.2

 

5.4

       

Used vehicle retail sales

5.4

 

5.7

       

Used vehicle wholesale sales

0.3

 

(2.6)

       

Total used

4.9

 

4.8

       

Parts and service

52.1

 

53.4

       

Finance, insurance and other, net

100.0

 

100.0

       

Total

15.0

 

14.6

       

GROSS PROFIT:

             

New vehicle retail sales

$

79,019

 

$

87,883

 

(10.1)

 

(8.6)

Used vehicle retail sales

39,437

 

39,947

 

(1.3)

 

(0.3)

Used vehicle wholesale sales

264

 

(2,328)

 

111.3

 

112.7

Total used

39,701

 

37,619

 

5.5

 

6.7

Parts and service

179,869

 

180,416

 

(0.3)

 

0.6

Finance, insurance and other, net

118,624

 

113,007

 

5.0

 

5.8

Total

$

417,213

 

$

418,925

 

(0.4)

 

0.6

UNITS SOLD:

             

Retail new vehicles sold

40,358

 

44,166

 

(8.6)

   

Retail used vehicles sold

34,347

 

31,609

 

8.7

   

Wholesale used vehicles sold

11,450

 

13,404

 

(14.6)

   

Total used

45,797

 

45,013

 

1.7

   

AVERAGE RETAIL SALES PRICE:

             

New vehicle retail

$

37,398

 

$

37,041

 

1.0

 

2.2

Used vehicle retail

$

21,401

 

$

22,121

 

(3.3)

 

(2.2)

GROSS PROFIT PER UNIT SOLD:

             

New vehicle retail sales

$

1,958

 

$

1,990

 

(1.6)

 

Used vehicle retail sales

1,148

 

1,264

 

(9.2)

 

(8.2)

Used vehicle wholesale sales

23

 

(174)

 

113.2

 

114.8

Total used

867

 

836

 

3.7

 

4.9

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

$

1,588

 

$

1,491

 

6.5

 

7.3

OTHER:

             

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

$

117,549

 

$

113,007

 

4.0

 

4.8

Adjusted Total revenue (2)

$

2,789,615

 

$

2,876,798

 

(3.0)

 

(1.9)

Adjusted Total gross profit (2)

$

416,138

 

$

418,925

 

(0.7)

 

0.4

Adjusted Total gross margin (2)

14.9

 

14.6

       

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

$

1,574

 

$

1,491

 

5.6

 

6.3

SG&A expenses

$

307,954

 

$

304,422

 

1.2

 

2.4

Adjusted SG&A expenses (2)

$

306,667

 

$

303,947

 

0.9

 

2.1

SG&A as % revenues

11.0

 

10.6

       

Adjusted SG&A as % revenues (2)

11.0

 

10.6

       

SG&A as % gross profit

73.8

 

72.7

       

Adjusted SG&A as % gross profit (2)

73.7

 

72.6

       

Operating margin %

2.7

 

3.2

       

Adjusted operating margin % (2)

3.3

 

3.5

       
 

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

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

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

 

Group 1 Automotive, Inc.

Additional Information - Same Store Consolidated (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)

   
 

Twelve Months Ended December 31,

 

2018

 

2017

 

% Increase/
(Decrease)

 

Constant Currency (2)
% Increase/(Decrease)

REVENUES:

             

New vehicle retail sales

$

5,823,673

 

$

6,089,164

 

(4.4)

 

(4.3)

Used vehicle retail sales

2,952,738

 

2,763,994

 

6.8

 

6.5

Used vehicle wholesale sales

334,712

 

393,973

 

(15.0)

 

(15.6)

Total used

3,287,450

 

3,157,967

 

4.1

 

3.8

Parts and service

1,359,516

 

1,322,600

 

2.8

 

2.8

Finance, insurance and other, net

446,148

 

423,801

 

5.3

 

5.3

Total

$

10,916,787

 

$

10,993,532

 

(0.7)

 

(0.8)

GROSS MARGIN %:

             

New vehicle retail sales

5.1

 

5.2

       

Used vehicle retail sales

5.9

 

6.4

       

Used vehicle wholesale sales

0.7

 

(0.7)

       

Total used

5.4

 

5.5

       

Parts and service

53.4

 

53.8

       

Finance, insurance and other, net

100.0

 

100.0

       

Total

15.1

 

14.8

       

GROSS PROFIT:

             

New vehicle retail sales

$

295,418

 

$

318,212

 

(7.2)

 

(6.9)

Used vehicle retail sales

174,262

 

176,067

 

(1.0)

 

(1.2)

Used vehicle wholesale sales

2,430

 

(2,643)

 

191.9

 

196.8

Total used

176,692

 

173,424

 

1.9

 

1.8

Parts and service

725,624

 

711,610

 

2.0

 

1.9

Finance, insurance and other, net

446,148

 

423,801

 

5.3

 

5.3

Total

$

1,643,882

 

$

1,627,047

 

1.0

 

1.1

UNITS SOLD:

             

Retail new vehicles sold

160,236

 

170,346

 

(5.9)

   

Retail used vehicles sold

138,520

 

128,509

 

7.8

   

Wholesale used vehicles sold

49,285

 

56,292

 

(12.4)

   

Total used

187,805

 

184,801

 

1.6

   

AVERAGE RETAIL SALES PRICE:

             

New vehicle retail

$

36,344

 

$

35,746

 

1.7

 

1.7

Used vehicle retail

$

21,316

 

$

21,508

 

(0.9)

 

(1.2)

GROSS PROFIT PER UNIT SOLD:

             

New vehicle retail sales

$

1,844

 

$

1,868

 

(1.3)

 

(1.0)

Used vehicle retail sales

1,258

 

1,370

 

(8.2)

 

(8.3)

Used vehicle wholesale sales

49

 

(47)

 

204.3

 

210.5

Total used

941

 

938

 

0.3

 

0.2

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

$

1,493

 

$

1,418

 

5.3

 

5.3

OTHER:

             

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

$

445,073

 

$

430,351

 

3.4

 

3.4

Adjusted Total revenue (2)

$

10,915,712

 

$

11,000,082

 

(0.8)

 

(0.8)

Adjusted Total gross profit (2)

$

1,642,807

 

$

1,633,597

 

0.6

 

0.6

Adjusted Total gross margin (2)

15.0

 

14.9

       

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

$

1,490

 

$

1,440

 

3.5

 

3.5

SG&A expenses

$

1,224,480

 

$

1,209,171

 

1.3

 

1.4

Adjusted SG&A expenses (2)

$

1,216,215

 

$

1,199,931

 

1.4

 

1.4

SG&A as % revenues

11.2

 

11.0

       

Adjusted SG&A as % revenues (2)

11.1

 

10.9

       

SG&A as % gross profit

74.5

 

74.3

       

Adjusted SG&A as % gross profit (2)

74.0

 

73.5

       

Operating margin %

2.9

 

3.1

       

Adjusted operating margin % (2)

3.3

 

3.4

       
 

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

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

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

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands)

     
   

Three Months Ended December 31,

   

2018

 

2017

 

% Increase/
(Decrease)

FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:

         
 

As reported

$

106,032

 

$

99,200

 

6.9

 

  Pre-tax adjustments:

         
 

Catastrophic events

(1,075)

 

   
 

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

$

104,957

 

$

99,200

 

5.8

TOTAL REVENUES RECONCILIATION:

         
 

As reported

$

2,266,540

 

$

2,287,197

 

(0.9)

 

  Pre-tax adjustments:

         
 

Catastrophic events

(1,075)

 

   
 

Adjusted Total Revenues (1)

$

2,265,465

 

$

2,287,197

 

(1.0)

TOTAL GROSS PROFIT RECONCILIATION:

         
 

As reported

$

352,480

 

$

350,678

 

0.5

 

  Pre-tax adjustments:

         
 

Catastrophic events

(1,075)

 

   
 

Adjusted Total Gross Profit (1)

$

351,405

 

$

350,678

 

0.2

SG&A RECONCILIATION:

         
 

As reported

$

252,634

 

$

242,070

 

4.4

 

  Pre-tax adjustments:

         
 

Catastrophic events

(605)

 

   
 

Gain (loss) on real estate and dealership transactions

(327)

 

   
 

Legal settlements

(682)

 

   
 

Adjusted SG&A (1)

$

251,020

 

$

242,070

 

3.7

TOTAL GROSS MARGIN %:

         
 

Unadjusted

15.6

 

15.3

   
 

Adjusted (1)

15.5

 

15.3

   

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

         
 

Unadjusted

$

1,778

 

$

1,700

 

4.6

 

Adjusted (1)

$

1,760

 

$

1,700

 

3.5

SG&A AS % REVENUES:

         
 

Unadjusted

11.1

 

10.6

   
 

Adjusted (1)

11.1

 

10.6

   

SG&A AS % GROSS PROFIT:

         
 

Unadjusted

71.7

 

69.0

   
 

Adjusted (1)

71.4

 

69.0

   

OPERATING MARGIN %:

         
 

Unadjusted

3.1

 

4.1

   
 

Adjusted (1), (2)

3.8

 

4.2

   

PRETAX MARGIN %:

         
 

Unadjusted

1.7

 

2.8

   
 

Adjusted (1), (2)

2.5

 

2.9

   

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

         
 

As reported

$

103,412

 

$

97,593

 

6.0

 

  Pre-tax adjustments:

         
 

Catastrophic events

(1,075)

 

   
 

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

$

102,337

 

$

97,593

 

4.9

SAME STORE TOTAL REVENUES RECONCILIATION:

         
 

As reported

$

2,216,414

 

$

2,246,278

 

(1.3)

 

  Pre-tax adjustments:

         
 

Catastrophic events

(1,075)

 

   
 

Adjusted Total Revenues (1)

$

2,215,339

 

$

2,246,278

 

(1.4)

SAME STORE TOTAL GROSS PROFIT RECONCILIATION:

         
 

As reported

$

345,721

 

$

344,390

 

0.4

 

  Pre-tax adjustments:

         
 

Catastrophic events

(1,075)

 

   
 

Adjusted Total Gross Profit (1)

$

344,646

 

$

344,390

 

0.1

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$

243,619

 

$

237,470

 

2.6

 

  Pre-tax adjustments:

         
 

Catastrophic events

(605)

 

   
 

Legal settlements

(682)

 

   
 

Adjusted Same Store SG&A (1)

$

242,332

 

$

237,470

 

2.0

SAME STORE TOTAL GROSS MARGIN %:

         
 

Unadjusted

15.6

 

15.3

   
 

Adjusted (1)

15.6

 

15.3

   

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

         
 

Unadjusted

$

1,785

 

$

1,697

 

5.2

 

Adjusted (1)

$

1,767

 

$

1,697

 

4.1

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

11.0

 

10.6

   
 

Adjusted (1)

10.9

 

10.6

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

70.5

 

69.0

   
 

Adjusted (1)

70.3

 

69.0

   

SAME STORE OPERATING MARGIN %:

         
 

Unadjusted

3.3

 

4.2

   
 

Adjusted (1), (3)

4.0

 

4.2

   
   

(1)

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

(2)

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

(3)

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

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands)

     
   

Twelve Months Ended December 31,

   

2018

 

2017

 

% Increase/
(Decrease)

FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:

         
 

As reported

$

401,271

 

$

375,954

 

6.7

 

  Pre-tax adjustments:

         
 

Catastrophic events

(1,075)

 

6,550

   
 

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

$

400,196

 

$

382,504

 

4.6

TOTAL REVENUES RECONCILIATION:

           
 

As reported

$

8,723,257

 

$

8,680,565

 

0.5

 

  Pre-tax adjustments:

         
 

Catastrophic events

(1,075)

 

6,550

   
 

Adjusted Total Revenues (1)

$

8,722,182

 

$

8,687,115

 

0.4

TOTAL GROSS PROFIT RECONCILIATION:

         
 

As reported

$

1,391,306

 

$

1,365,314

 

1.9

 

  Pre-tax adjustments:

         
 

Catastrophic events

(1,075)

 

6,550

   
 

Adjusted Total Gross Profit (1)

$

1,390,231

 

$

1,371,864

 

1.3

SG&A RECONCILIATION:

         
 

As reported

$

982,064

 

$

983,974

 

(0.2)

 

  Pre-tax adjustments:

         
 

Catastrophic events

(6,417)

 

(8,792)

   
 

Gain (loss) on real estate and dealership transactions

25,186

 

(798)

   
 

Legal settlements

(1,285)

 

1,113

   
 

Adjusted SG&A (1)

$

999,548

 

$

975,497

 

2.5

TOTAL GROSS MARGIN %:

         
 

Unadjusted

15.9

 

15.7

   
 

Adjusted (1)

15.9

 

15.8

   

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

         
 

Unadjusted

$

1,710

 

$

1,647

 

3.8

 

Adjusted (1)

$

1,705

 

$

1,675

 

1.8

SG&A AS % REVENUES:

         
 

Unadjusted

11.3

 

11.3

   
 

Adjusted (1)

11.5

 

11.2

   

SG&A AS % OF GROSS PROFIT:

         
 

Unadjusted

70.6

 

72.1

   
 

Adjusted (1)

71.9

 

71.1

   

OPERATING MARGIN %:

         
 

Unadjusted

3.6

 

3.7

   
 

Adjusted (1), (2)

3.9

 

4.0

   

PRETAX MARGIN %:

         
 

Unadjusted

2.2

 

2.4

   
 

Adjusted (1), (2)

2.5

 

2.7

   

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

         
 

As reported

$

391,730

 

$

371,932

 

5.3

 

  Pre-tax adjustments:

         
 

Catastrophic events

(1,075)

 

6,550

   
 

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

$

390,655

 

$

378,482

 

3.2

SAME STORE TOTAL REVENUES RECONCILIATION:

         
 

As reported

$

8,536,524

 

$

8,596,934

 

(0.7)

 

  Pre-tax adjustments:

         
 

Catastrophic events

(1,075)

 

6,550

   
 

Adjusted Total Revenues (1)

$

8,535,449

 

$

8,603,484

 

(0.8)

SAME STORE TOTAL GROSS PROFIT RECONCILIATION:

         
 

As reported

$

1,363,800

 

$

1,351,333

 

0.9

 

  Pre-tax adjustments:

         
 

Catastrophic events

(1,075)

 

6,550

   
 

Adjusted Total Gross Profit (1)

$

1,362,725

 

$

1,357,883

 

0.4

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$

979,531

 

$

973,412

 

0.6

 

  Pre-tax adjustments:

         
 

Catastrophic events

(6,417)

 

(8,792)

   
 

Gain (loss) on real estate and dealership transactions

2,372

 

(798)

   
 

Legal settlements

(1,285)

 

1,113

   
 

Adjusted Same Store SG&A (1)

$

974,201

 

$

964,935

 

1.0

SAME STORE TOTAL GROSS MARGIN %:

         
 

Unadjusted

16.0

 

15.7

   
 

Adjusted (1)

16.0

 

15.8

   

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

         
 

Unadjusted

$

1,707

 

$

1,641

 

4.0

 

Adjusted (1)

$

1,703

 

$

1,670

 

2.0

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

11.5

 

11.3

   
 

Adjusted (1)

11.4

 

11.2

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

71.8

 

72.0

   
 

Adjusted (1)

71.5

 

71.1

   

SAME STORE OPERATING MARGIN %:

         
 

Unadjusted

3.4

 

3.7

   
 

Adjusted (1), (3)

3.9

 

4.0

   
   

(1)

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

(2)

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

(3)

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

 

Group 1 Automotive, Inc.

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

(Unaudited)

 (Dollars in thousands)

     
   

Three Months Ended December 31,

   

2018

 

2017

 

% Increase/
(Decrease)

OPERATING MARGIN %:

         
 

Unadjusted

0.4

 

0.8

   
 

Adjusted (1), (2)

0.5

 

0.8

   

PRETAX MARGIN %:

         
 

Unadjusted

(0.2)

 

0.3

   
 

Adjusted (1), (2)

(0.1)

 

0.3

   

SAME STORE OPERATING MARGIN %:

         
 

Unadjusted

0.3

 

0.8

   
 

Adjusted (1), (2)

0.4

 

0.8

   
   

(1)

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

(2)

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

 

Group 1 Automotive, Inc.

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

(Unaudited)

 (Dollars in thousands)

     
   

Twelve Months Ended December 31,

   

2018

 

2017

 

% Increase/
(Decrease)

SG&A RECONCILIATION:

         
 

As reported

$

240,403

 

$

191,570

 

25.5

 

  Pre-tax adjustments:

         
 

Acquisition costs

 

(288)

   
 

Adjusted SG&A (1)

$

240,403

 

$

191,282

 

25.7

SG&A AS % REVENUES:

         
 

Unadjusted

9.9

 

9.6

   
 

Adjusted (1)

9.9

 

9.6

   

SG&A AS % OF GROSS PROFIT:

         
 

Unadjusted

85.9

 

85.0

   
 

Adjusted (1)

85.9

 

84.9

   

OPERATING MARGIN %:

         
 

Unadjusted

1.1

 

1.3

   
 

Adjusted (1), (2)

1.1

 

1.3

   

PRETAX MARGIN %:

         
 

Unadjusted

0.5

 

0.9

   
 

Adjusted (1), (2)

0.6

 

0.9

   

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$

196,899

 

$

186,160

 

5.8

 

  Pre-tax adjustments:

         
 

Acquisition costs

 

(288)

   
 

Adjusted Same Store SG&A (1)

$

196,899

 

$

185,872

 

5.9

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

10.1

 

9.6

   
 

Adjusted (1)

10.1

 

9.6

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

86.3

 

84.1

   
 

Adjusted (1)

86.3

 

84.0

   

SAME STORE OPERATING MARGIN %:

         
 

Unadjusted

1.0

 

1.4

   
 

Adjusted (1), (3)

1.1

 

1.4

   
   

(1)

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

(2)

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

(3)

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

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Brazil

(Unaudited)

 (Dollars in thousands)

     
   

Three Months Ended December 31,

   

2018

 

2017

 

% Increase/
(Decrease)

SG&A RECONCILIATION:

         
 

As reported

$

12,368

 

$

13,356

 

(7.4)

 

Severance costs

 

(475)

   
 

Adjusted SG&A (1)

$

12,368

 

$

12,881

 

(4.0)

SG&A AS % REVENUES:

         
 

Unadjusted

10.5

 

10.7

   
 

Adjusted (1)

10.5

 

10.3

   

SG&A AS % GROSS PROFIT:

         
 

Unadjusted

84.4

 

91.7

   
 

Adjusted (1)

84.4

 

88.4

   

OPERATING MARGIN %:

         
 

Unadjusted

1.6

 

(4.7)

   
 

Adjusted (1), (2)

1.6

 

1.1

   

PRETAX MARGIN %:

         
 

Unadjusted

1.3

 

(4.9)

   
 

Adjusted (1), (2)

1.3

 

0.9

   

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$

11,472

 

$

13,459

 

(14.8)

 

  Pre-tax adjustments:

         
 

Severance costs

 

(475)

   
 

Adjusted Same Store SG&A (1)

$

11,472

 

$

12,984

 

(11.6)

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

10.5

 

10.7

   
 

Adjusted (1)

10.5

 

10.4

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

83.4

 

92.4

   
 

Adjusted (1)

83.4

 

89.1

   

SAME STORE OPERATING MARGIN %:

         
 

Unadjusted

1.7

 

(4.8)

   
 

Adjusted (1), (3)

1.7

 

1.0

   
   

(1)

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

(2)

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

(3)

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

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Brazil

(Unaudited)

 (Dollars in thousands)

             
   

Twelve Months Ended December 31,

   

2018

 

2017

 

% Increase/
(Decrease)

SG&A RECONCILIATION:

         
 

As reported

$

50,590

 

$

50,651

 

(0.1)

 

  Pre-tax adjustments:

         
 

Severance costs

 

(475)

   
 

Legal settlements

(3,670)

 

   
 

Adjusted SG&A (1)

$

46,920

 

$

50,176

 

(6.5)

SG&A AS % REVENUES:

         
 

Unadjusted

11.5

 

11.1

   
 

Adjusted (1)

10.6

 

11.0

   

SG&A AS % OF GROSS PROFIT:

         
 

Unadjusted

93.9

 

92.2

   
 

Adjusted (1)

87.1

 

91.3

   

OPERATING MARGIN %:

         
 

Unadjusted

0.4

 

(0.9)

   
 

Adjusted (1), (2)

1.2

 

0.7

   

PRETAX MARGIN %:

         
 

Unadjusted

 

(1.0)

   
 

Adjusted (1), (2)

0.8

 

0.6

   

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$

48,050

 

$

49,599

 

(3.1)

 

  Pre-tax adjustments:

         
 

Severance costs

 

(475)

   
 

Legal settlements

(2,934)

 

   
 

Adjusted Same Store SG&A (1)

$

45,116

 

$

49,124

 

(8.2)

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

11.4

 

11.0

   
 

Adjusted (1)

10.7

 

10.9

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

92.6

 

91.0

   
 

Adjusted (1)

87.0

 

90.2

   

SAME STORE OPERATING MARGIN %:

         
 

Unadjusted

0.5

 

(0.7)

   
 

Adjusted (1), (3)

1.2

 

0.9

   
   

(1)

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

(2)

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

(3)

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

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Consolidated

(Unaudited)

 (Dollars in thousands, except per share amounts)

     
   

Three Months Ended December 31,

   

2018

 

2017

 

% Increase/
(Decrease)

NET INCOME RECONCILIATION:

         
 

As reported

         
 

  Pretax Net Income

$

39,683

 

$

58,974

   
 

  Income Tax Provision

(8,965)

 

51,515

   
 

    Net Income

$

30,718

 

$

110,489

 

(72.2)

 

      Effective Tax Rate

22.6%

 

(87.4)%

   
 

Adjustments:

         
 

Catastrophic events

         
 

Pre-tax

(470)

 

   
 

Tax impact

114

 

   
 

(Gain) loss on real estate and dealership transactions

         
 

Pre-tax

327

 

   
 

Tax impact

(79)

 

   
 

Severance costs

         
 

Pre-tax

 

475

   
 

Tax impact

 

(122)

   
 

Legal settlements

         
 

Pre-tax

682

 

   
 

Tax impact

(167)

 

   
 

Non-cash asset impairment

         
 

Pre-tax

16,456

 

9,979

   
 

Tax impact

(3,775)

 

(3,515)

   
 

Tax rate changes

         
 

Pre-tax

 

   
 

Tax impact

 

(73,028)

   
 

Adjusted

         
 

  Pretax Net Income

$

56,678

 

$

69,428

   
 

  Income Tax Provision

(12,872)

 

(25,150)

   
 

Adjusted net income (1)

$

43,806

 

$

44,278

 

(1.1)

 

      Effective Tax Rate

22.7%

 

36.2%

   

ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION:

         
 

Adjusted net income (1)

$

43,806

 

$

44,278

 

(1.1)

 

Less: Adjusted earnings allocated to participating securities

1,567

 

1,483

 

5.6

 

Adjusted net income available to diluted common shares (1)

$

42,239

 

$

42,795

 

(1.3)

DILUTED (LOSS) INCOME PER COMMON SHARE RECONCILIATION:

         
 

As reported

$

1.62

 

$

5.27

 

(69.3)

 

  After-tax adjustments:

         
 

Catastrophic events

(0.02)

 

   
 

(Gain) loss on real estate and dealership transactions

0.01

 

   
 

Severance costs

 

0.02

   
 

Legal settlements

0.03

 

   
 

Non-cash asset impairment

0.67

 

0.30

   
 

Tax rate changes

 

(3.48)

   
 

Adjusted diluted income per share (1)

$

2.31

 

$

2.11

 

9.5

FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:

         
 

As reported

$

123,991

 

$

114,705

 

8.1

 

  Pre-tax adjustments:

         
 

Catastrophic events

(1,075)

 

   
 

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

$

122,916

 

$

114,705

 

7.2

TOTAL REVENUES RECONCILIATION:

         
 

As reported

$

2,908,812

 

$

2,920,405

 

(0.4)

 

  Pre-tax adjustments:

         
 

Catastrophic events

(1,075)

 

   
 

Adjusted Total Revenues (1)

$

2,907,737

 

$

2,920,405

 

(0.4)

TOTAL GROSS PROFIT RECONCILIATION:

         
 

As reported

$

432,066

 

$

425,675

 

1.5

 

  Pre-tax adjustments:

         
 

Catastrophic events

(1,075)

 

   
 

Adjusted Total Gross Profit (1)

$

430,991

 

$

425,675

 

1.2

SG&A RECONCILIATION:

         
 

As reported

$

323,847

 

$

309,521

 

4.6

 

  Pre-tax adjustments:

         
 

Catastrophic events

(605)

 

   
 

Gain (loss) on real estate and dealership transactions

(327)

 

   
 

Severance costs

 

(475)

   
 

Legal settlements

(682)

 

   
 

Adjusted SG&A (1)

$

322,233

 

$

309,046

 

4.3

TOTAL GROSS MARGIN %:

         
 

Unadjusted

14.9

 

14.6

   
 

Adjusted (1)

14.8

 

14.6

   

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

         
 

Unadjusted

$

1,582

 

$

1,495

 

5.8

 

Adjusted (1)

$

1,568

 

$

1,495

 

4.9

SG&A AS % REVENUES:

         
 

Unadjusted

11.1

 

10.6

   
 

Adjusted (1)

11.1

 

10.6

   

SG&A AS % GROSS PROFIT:

         
 

Unadjusted

75.0

 

72.7

   
 

Adjusted (1)

74.8

 

72.6

   

OPERATING MARGIN %:

         
 

Unadjusted

2.6

 

3.1

   
 

Adjusted (1), (2)

3.2

 

3.5

   

PRETAX MARGIN %:

         
 

Unadjusted

1.4

 

2.0

   
 

Adjusted (1), (2)

1.9

 

2.4

   

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

       
 

As reported

$

118,624

 

$

113,007

 

5.0

 

  Pre-tax adjustments:

         
 

Catastrophic events

(1,075)

 

   
 

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

$

117,549

 

$

113,007

 

4.0

SAME STORE TOTAL REVENUES RECONCILIATION:

         
 

As reported

$

2,790,690

 

$

2,876,798

 

(3.0)

 

  Pre-tax adjustments:

         
 

Catastrophic events

(1,075)

 

   
 

Adjusted Total Revenues (1)

$

2,789,615

 

$

2,876,798

 

(3.0)

SAME STORE TOTAL GROSS PROFIT RECONCILIATION:

         
 

As reported

$

417,213

 

$

418,925

 

(0.4)

 

  Pre-tax adjustments:

         
 

Catastrophic events

(1,075)

 

   
 

Adjusted Total Gross Profit (1)

$

416,138

 

$

418,925

 

(0.7)

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$

307,954

 

$

304,422

 

1.2

 

  Pre-tax adjustments:

         
 

Catastrophic events

(605)

 

   
 

Severance costs

 

(475)

   
 

Legal settlements

(682)

 

&