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Group 1 Automotive

800 Gessner
Houston, TX 77024

  • Sales: (713) 647-5700
Investor Relations

Group 1 Automotive Announces First Quarter 2019 Financial Results

Strong Growth in Used Vehicle and Aftersales Business Drives Record First Quarter Net Income & EPS

HOUSTON, April 25, 2019 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), ("Group 1" or the "Company"), an international, Fortune 500 automotive retailer, today reported 2019 first quarter net income of $38.6 million, diluted earnings per common share (EPS) of $2.08, adjusted net income (a non-GAAP measure) of $38.2 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $2.06.

As shown in the attached non-GAAP reconciliation tables, the 2019 first quarter adjusted results (non-GAAP measures) exclude a net after-tax gain of approximately $0.5 million, or $0.02 cents per common share.  This gain is comprised of $3.8 million of net after-tax gains related to dealership and real estate dispositions, partially offset by $1.9 million in after-tax losses related to legal matters, and $1.5 million in after-tax catastrophic losses related to hail storms.

"Our 21-percent growth in adjusted EPS versus last year reflects great performance by our U.S. and U.K. operating teams," said Earl J. Hesterberg, Group 1's president and chief executive officer. "The strategic emphasis we have placed on our used vehicle and aftersales business was obvious in our financial results this quarter.  This performance clearly demonstrates our ability to grow earnings in a soft new vehicle sales market."

Consolidated Results for First Quarter 2019 (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 decreased 1.8 percent (increased 0.3 percent) to $2.8 billion.
  • Total gross profit grew 2.8 percent (4.4 percent), to $431.5 million.
  • New vehicle revenues decreased 6.5 percent (4.5 percent) on 5.6 percent lower unit sales. New vehicle gross profit decreased 5.4 percent (3.1 percent), to $71.4 million.
  • Retail used vehicle revenues increased 4.9 percent (7.2 percent) on 7.2 percent higher unit sales. Retail used vehicle gross profit increased 9.9 percent (11.7 percent), to $47.8 million. Total used vehicle gross profit was up 6.9 percent (8.3 percent), to $48.3 million.
  • Aftersales gross profit increased 6.2 percent (7.9 percent) on revenue growth of 5.6 percent (7.3 percent). Same Store aftersales gross profit increased 6.1 percent (7.6 percent) on revenue growth of 6.1 percent (7.7 percent).
  • Finance and Insurance (F&I) gross profit per retail unit (PRU) increased 0.6 percent (1.7 percent), to $1,459 and total F&I gross profit increased $1.1 million, or 0.9 percent (2.1 percent).
  • Adjusted Selling, General and Administrative (SG&A) expenses as a percent of gross profit improved 120 basis points, to 76.1 percent.
  • Total net income increased 7.9 percent to $38.6 million, adjusted net income increased 6.6 percent to $38.2 million, diluted earnings per common share increased 22.4 percent to $2.08, and adjusted diluted earnings per common share increased 21.2 percent to $2.06. The improvement in EPS reflects both the growth in net income, as well as the positive impact of significant share repurchases across 2018.

 

Segment Results for First Quarter 2019 (year-over-year comparable basis)

  • United States:

The Company's U.S. operations accounted for 73.5 percent of total revenues and 80.4 percent of total gross profit. Total U.S. revenues were $2.1 billion, a decrease of 1.2 percent, driven by a decrease in new vehicle revenue (down 5.3 percent), which was partially offset by strong growth in used vehicles and aftersales. Same Store highlights in the segment were:

    • New vehicle gross profit PRU grew 5.1 percent or $94 per unit, to $1,932.
    • Total used vehicle revenue grew 2.9 percent, driven by an increase of 6.6 percent in used vehicle retail units. For the first time in the Company's history, first quarter 2019 used vehicle retail unit sales exceeded new vehicle unit sales in the quarter (by 2,820 units).
    • Total used vehicle gross profit increased 13.3 percent, as the strong volumes were aided by a $91 per unit increase in used vehicle retail gross profit PRU sold.
    • Aftersales delivered a strong quarter with revenue up 6.8 percent and gross profit grew 7.5 percent.
    • F&I gross profit PRU was $1,737.
    • Total gross profit grew 4.0 percent to $339.7 million.
    • SG&A expense as a percent of gross profit improved 40 basis points to 74.6 percent and adjusted SG&A expense as a percent of gross profit improved 120 basis points to 73.8 percent.

 

  • United Kingdom:

The Company's U.K. operations accounted for 22.9 percent of total revenues and 16.7 percent of total gross profit. The U.K. new vehicle industry sales decreased two percent for the first quarter 2019, with the Audi brand industry sales down 13 percent.  

On a constant currency basis, Same Store U.K. revenues decreased 2.1 percent, with lower new vehicle sales partially offset by the strength of aftersales (up 12.4 percent), and F&I (up 8.1 percent).   Total Same Store U.K. gross profit increased 0.9 percent on a constant currency basis, as strong growth in aftersales and F&I more than offset weaker new and total used vehicle gross profit.  On a constant currency basis, Same Store F&I gross profit PRU grew 11.6 percent, to $827.

Same Store SG&A expenses as a percent of gross profit improved 150 basis points to 81.1 percent and operating margin improved 20 basis points to 1.6 percent.

  • Brazil:

The Company's Brazilian operations accounted for 3.7 percent of total revenues and 2.9 percent of total gross profit. Total revenue grew 8.1 percent on a constant currency basis, reflecting strong growth in each area of the business.  Total gross profit grew 15.7 percent, on a constant currency basis, as total gross margin increased 80 basis points to 12.2 percent.

"The dramatic growth of our aftersales business this quarter was especially remarkable and reflects a variety of actions we have taken over the past year.  Our Same Store aftersales revenue growth of 6.8 percent in the U.S., as well as 12.4 percent in the U.K., and 10.2 percent in Brazil demonstrates our competence in this area of the business across our entire company," added Hesterberg.

Share Repurchase Authorization

During the first quarter of 2019, the Company did not repurchase any of its outstanding common stock.  As of April 25, 2019, $75.0 million remains available under the Company's 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

In February 2019, the Company disposed of a Chrysler-Jeep-Dodge-Ram dealership in California that generated approximately $60 million in trailing-twelve-month revenues.  In March 2019, the Company opened a Kia add-point in an existing facility in the U.K, which is expected to generate approximately $15 million in annual revenues.

Year-to-date 2019, the Company has opened two add-points that are expected to generate $40 million in annual revenues, and has disposed of seven franchises that generated approximately $120 million in trailing-twelve-month revenues.

First Quarter 2019 Earnings Conference Call Details

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

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

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

Domestic:

1-888-317-6003

International:

1-412-317-6061

Conference ID:

3041785

A telephonic replay will be available following the call through May 3, 2018 by dialing:

Domestic:

1-877-344-7529

International:

1-412-317-0088

Replay ID:

10130481

About Group 1 Automotive, Inc.
Group 1 owns and operates 181 automotive dealerships, 233 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 March 31,

   

2019

 

2018

 

%
Increase/(Decrease)

REVENUES:

           

New vehicle retail sales

 

$

1,414,485

 

$

1,513,590

 

(6.5)

Used vehicle retail sales

 

819,203

 

780,570

 

4.9

Used vehicle wholesale sales

 

92,138

 

104,029

 

(11.4)

Parts and service

 

369,174

 

349,515

 

5.6

Finance, insurance and other, net

 

113,376

 

112,322

 

0.9

Total revenues

 

2,808,376

 

2,860,026

 

(1.8)

COST OF SALES:

       

New vehicle retail sales

 

1,343,094

 

1,438,163

 

(6.6)

Used vehicle retail sales

 

771,394

 

737,075

 

4.7

Used vehicle wholesale sales

 

91,687

 

102,374

 

(10.4)

Parts and service

 

170,698

 

162,651

 

4.9

Total cost of sales

 

2,376,873

 

2,440,263

 

(2.6)

GROSS PROFIT

 

431,503

 

419,763

 

2.8

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

 

327,708

 

324,347

 

1.0

DEPRECIATION AND AMORTIZATION EXPENSE

 

16,997

 

16,342

 

4.0

OPERATING INCOME (LOSS)

 

86,798

 

79,074

 

9.8

OTHER EXPENSE:

       

Floorplan interest expense

 

(15,703)

 

(14,087)

 

11.5

Other interest expense, net

 

(18,919)

 

(18,820)

 

0.5

INCOME (LOSS) BEFORE INCOME TAXES

 

52,176

 

46,167

 

13.0

BENEFIT (PROVISION) FOR INCOME TAXES

 

(13,528)

 

(10,353)

 

30.7

NET INCOME (LOSS)

 

$

38,648

 

$

35,814

 

7.9

Less: Earnings allocated to participating securities

 

$

1,455

 

$

1,208

 

20.4

Earnings available to diluted common shares

 

$

37,193

 

$

34,606

 

7.5

DILUTED EARNINGS PER SHARE

 

$

2.08

 

$

1.70

 

22.4

Weighted average dilutive common shares outstanding

 

17,849

   

20,307

 

(12.1)

Weighted average participating securities

 

701

   

715

 

(2.0)

Total weighted average shares outstanding

 

18,550

   

21,022

 

(11.8)

 

 

 

 

Group 1 Automotive, Inc.

Consolidated Balance Sheets

(Unaudited)

(Dollars in thousands)

             
   

March 31,
2019

 

December 31,
2018

 

%
Increase/(Decrease)

ASSETS:

           

CURRENT ASSETS:

           

Cash and cash equivalents

 

$

33,623

 

$

15,932

 

111.0

Contracts in transit and vehicle receivables, net

 

261,194

 

265,660

 

(1.7)

Accounts and notes receivable, net

 

185,311

 

193,981

 

(4.5)

Inventories, net

 

1,860,907

 

1,844,059

 

0.9

Prepaid expenses and other current assets

 

92,036

 

82,734

 

11.2

Total current assets

 

2,433,071

 

2,402,366

 

1.3

PROPERTY AND EQUIPMENT, net

 

1,370,743

 

1,347,835

 

1.7

OPERATING LEASE ASSETS

 

214,776

 

 

100.0

GOODWILL AND INTANGIBLE FRANCHISE RIGHTS

 

1,226,347

 

1,223,555

 

0.2

OTHER ASSETS

 

18,554

 

27,319

 

(32.1)

Total assets

 

$

5,263,491

 

$

5,001,075

 

5.2

             

LIABILITIES AND STOCKHOLDERS' EQUITY:

           

CURRENT LIABILITIES:

           

Floorplan notes payable - credit facility and other

 

$

1,255,784

 

$

1,292,452

 

(2.8)

Offset account related to floorplan notes payable - credit facility

 

(72,728)

 

(33,637)

 

116.2

Floorplan notes payable - manufacturer affiliates

 

444,003

 

417,924

 

6.2

Offset account related to floorplan notes payable - manufacturer affiliates

 

(26,000)

 

(100)

 

25,900.0

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

 

96,359

 

92,967

 

3.6

Current operating lease liabilities

 

23,907

 

 

100.0

Current liabilities from interest rate risk management activities

 

254

 

115

 

120.9

Accounts payable

 

507,348

 

419,350

 

21.0

Accrued expenses

 

207,815

 

197,494

 

5.2

Total current liabilities

 

2,436,742

 

2,386,565

 

2.1

5.00% SENIOR NOTES (principal of $550,000 at March 31, 2019 and December 31, 2018, respectively)

 

544,158

 

543,730

 

0.1

5.25% SENIOR NOTES (principal of $300,000 at March 31, 2019 and December 31, 2018, respectively)

 

296,884

 

296,735

 

0.1

ACQUISITION LINE

 

29,342

 

31,842

 

(7.9)

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

 

350,884

 

366,723

 

(4.3)

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

 

41,314

 

42,459

 

(2.7)

OPERATING LEASE LIABILITIES, net of current portion

 

204,331

 

 

100.0

DEFERRED INCOME TAXES

 

136,219

 

134,683

 

1.1

LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES

 

2,430

 

1,696

 

43.3

OTHER LIABILITIES

 

93,474

 

100,948

 

(7.4)

STOCKHOLDERS' EQUITY:

           

Common stock

 

255

 

255

 

Additional paid-in capital

 

287,115

 

292,774

 

(1.9)

Retained earnings

 

1,422,576

 

1,394,817

 

2.0

Accumulated other comprehensive income (loss)

 

(138,749)

 

(137,772)

 

0.7

Treasury stock

 

(443,484)

 

(454,380)

 

(2.4)

Total stockholders' equity

 

1,127,713

 

1,095,694

 

2.9

Total liabilities and stockholders' equity

 

$

5,263,491

 

$

5,001,075

 

5.2

 

 

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

   
     

Three Months Ended

     

March 31,

     

2019 (%)

 

2018 (%)

NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:

     

Region

Geographic Market

       

United States

Texas

 

34.5

 

34.9

 

Oklahoma

 

6.1

 

6.0

 

California

 

5.3

 

6.5

 

Massachusetts

 

4.3

 

4.8

 

Georgia

 

4.2

 

4.3

 

Florida

 

2.7

 

2.5

 

Louisiana

 

2.3

 

1.8

 

New Jersey

 

1.8

 

1.6

 

New Hampshire

 

1.6

 

1.8

 

South Carolina

 

1.6

 

1.5

 

Mississippi

 

1.2

 

1.2

 

Kansas

 

1.0

 

1.4

 

Alabama

 

0.7

 

0.7

 

Maryland

 

0.4

 

0.5

 

New Mexico

 

0.2

 

0.1

     

67.9

 

69.6

           

International

United Kingdom

 

26.6

 

25.4

 

Brazil

 

5.5

 

5.0

     

100.0

 

100.0

         

NEW VEHICLE UNIT SALES BRAND MIX:

     

Toyota/Lexus

 

23.1

 

24.0

Volkswagen/Audi/Porsche/SEAT/SKODA

 

15.1

 

14.1

BMW/MINI

 

12.5

 

12.7

Honda/Acura

 

10.9

 

9.5

Ford/Lincoln

 

10.6

 

11.3

Chevrolet/GMC/Buick/Cadillac

 

6.3

 

5.8

Nissan

 

6.0

 

6.7

Mercedes-Benz/smart/Sprinter

 

5.4

 

4.7

Hyundai/Kia

 

3.5

 

3.9

Chrysler/Dodge/Jeep/RAM

 

3.1

 

4.1

Jaguar/Land Rover

 

2.5

 

1.8

Other

 

1.0

 

1.4

   

100.0

 

100.0

 

Group 1 Automotive, Inc.

Additional Information - U.S.

(Unaudited)

(Dollars in thousands, except per unit amounts)

           
   

Three Months Ended March 31,

   

2019

 

2018

 

%
Increase/(Decrease)

REVENUES:

           

New vehicle retail sales

 

$

1,031,742

 

$

1,089,953

 

(5.3)

Used vehicle retail sales

 

594,418

 

563,830

 

5.4

Used vehicle wholesale sales

 

42,827

 

54,002

 

(20.7)

Total used

 

637,245

 

617,832

 

3.1

Parts and service

 

297,602

 

284,514

 

4.6

Finance, insurance and other, net

 

96,193

 

96,187

 

Total

 

$

2,062,782

 

$

2,088,486

 

(1.2)

GROSS MARGIN %:

           

New vehicle retail sales

 

4.9

 

4.9

   

Used vehicle retail sales

 

6.4

 

5.9

   

Used vehicle wholesale sales

 

2.7

 

2.7

   

Total used

 

6.2

 

5.7

   

Parts and service

 

53.9

 

53.2

   

Finance, insurance and other, net

 

100.0

 

100.0

   

Total

 

16.8

 

16.1

   

GROSS PROFIT:

           

New vehicle retail sales

 

$

50,804

 

$

53,135

 

(4.4)

Used vehicle retail sales

 

38,284

 

33,485

 

14.3

Used vehicle wholesale sales

 

1,164

 

1,434

 

(18.8)

Total used

 

39,448

 

34,919

 

13.0

Parts and service

 

160,472

 

151,444

 

6.0

Finance, insurance and other, net

 

96,193

 

96,187

 

Total

 

$

346,917

 

$

335,685

 

3.3

UNITS SOLD:

           

Retail new vehicles sold

 

26,390

 

28,673

 

(8.0)

Retail used vehicles sold

 

29,317

 

27,310

 

7.3

Wholesale used vehicles sold

 

7,150

 

9,383

 

(23.8)

Total used

 

36,467

 

36,693

 

(0.6)

AVERAGE RETAIL SALES PRICE:

           

New vehicle retail

 

$

39,096

 

$

38,013

 

2.8

Used vehicle retail

 

$

20,276

 

$

20,646

 

(1.8)

GROSS PROFIT PER UNIT SOLD:

           

New vehicle retail sales

 

$

1,925

 

$

1,853

 

3.9

Used vehicle retail sales

 

$

1,306

 

$

1,226

 

6.5

Used vehicle wholesale sales

 

$

163

 

$

153

 

6.5

Total used

 

$

1,082

 

$

952

 

13.7

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

 

$

1,727

 

$

1,718

 

0.5

OTHER:

           

SG&A expenses

 

$

256,153

 

$

252,941

 

1.3

Adjusted SG&A expenses (1)

 

$

257,567

 

$

252,941

 

1.8

SG&A as % revenues

 

12.4

 

12.1

   

Adjusted SG&A as % revenues (1)

 

12.5

 

12.1

   

SG&A as % gross profit

 

73.8

 

75.4

   

Adjusted SG&A as % gross profit (1)

 

74.2

 

75.4

   

Operating margin %

 

3.8

 

3.3

   

Adjusted operating margin % (1)

 

3.7

 

3.3

   

Pretax margin %

 

2.2

 

1.9

   

Adjusted pretax margin % (1)

 

2.2

 

1.9

   

INTEREST EXPENSE:

           

Floorplan interest expense

 

$

(13,988)

 

$

(12,337)

 

13.4

Floorplan assistance

 

10,326

 

10,750

 

(3.9)

Net floorplan expense

 

$

(3,662)

 

$

(1,587)

 

130.7

Other interest expense, net

 

$

(17,175)

 

$

(17,016)

 

0.9

 

(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)

   
 

Three Months Ended March 31,

 

2019

 

2018

 

%
Increase/(Decrease)

 

Constant Currency (1) 
% Increase/(Decrease)

REVENUES:

             

New vehicle retail sales

$

318,571

 

$

354,404

 

(10.1)

 

(4.2)

Used vehicle retail sales

203,561

 

192,549

 

5.7

 

12.9

Used vehicle wholesale sales

45,261

 

46,185

 

(2.0)

 

4.7

Total used

248,822

 

238,734

 

4.2

 

11.3

Parts and service

59,566

 

53,141

 

12.1

 

19.8

Finance, insurance and other, net

15,199

 

14,263

 

6.6

 

13.6

Total

$

642,158

 

$

660,542

 

(2.8)

 

3.7

GROSS MARGIN %:

             

New vehicle retail sales

5.3

 

5.2

       

Used vehicle retail sales

4.1

 

4.4

       

Used vehicle wholesale sales

(2.2)

 

0.2

       

Total used

2.9

 

3.6

       

Parts and service

55.0

 

56.5

       

Finance, insurance and other, net

100.0

 

100.0

       

Total

11.2

 

10.8

       

GROSS PROFIT:

             

New vehicle retail sales

$

16,772

 

$

18,511

 

(9.4)

 

(3.7)

Used vehicle retail sales

8,288

 

8,560

 

(3.2)

 

3.4

Used vehicle wholesale sales

(1,010)

 

70

 

(1,542.9)

 

(1,798.0)

Total used

7,278

 

8,630

 

(15.7)

 

(11.2)

Parts and service

32,746

 

30,047

 

9.0

 

16.4

Finance, insurance and other, net

15,199

 

14,263

 

6.6

 

13.6

Total

$

71,995

 

$

71,451

 

0.8

 

7.5

UNITS SOLD:

             

Retail new vehicles sold

10,344

 

10,450

 

(1.0)

   

Retail used vehicles sold

8,431

 

7,835

 

7.6

   

Wholesale used vehicles sold

5,367

 

5,587

 

(3.9)

   

Total used

13,798

 

13,422

 

2.8

   

AVERAGE RETAIL SALES PRICE:

             

New vehicle retail

$

30,798

 

$

33,914

 

(9.2)

 

(3.3)

Used vehicle retail

$

24,144

 

$

24,575

 

(1.8)

 

5.0

GROSS PROFIT PER UNIT SOLD:

             

New vehicle retail sales

$

1,621

 

$

1,771

 

(8.5)

 

(2.7)

Used vehicle retail sales

$

983

 

$

1,093

 

(10.1)

 

(3.9)

Used vehicle wholesale sales

$

(188)

 

$

13

 

(1,546.2)

 

(1,867.6)

Total used

$

527

 

$

643

 

(18.0)

 

(13.6)

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

$

810

 

$

780

 

3.8

 

10.7

OTHER:

             

SG&A expenses

$

59,192

 

$

59,596

 

(0.7)

 

6.1

SG&A as % revenues

9.2

 

9.0

       

SG&A as % gross profit

82.2

 

83.4

       

Operating margin %

1.5

 

1.3

       

Pretax margin %

1.0

 

0.9

       

INTEREST EXPENSE:

             

Floorplan interest expense

$

(1,614)

 

$

(1,514)

 

6.6

 

13.9

Floorplan assistance

156

 

285

 

(45.3)

 

(41.4)

Net floorplan expense

$

(1,458)

 

$

(1,229)

 

18.6

 

26.7

Other interest expense, net

$

(1,584)

 

$

(1,532)

 

3.4

 

10.6

 

(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 - Brazil

(Unaudited)

(Dollars in thousands, except per unit amounts)

   
 

Three Months Ended March 31,

 

2019

 

2018

 

%
Increase/(Decrease)

 

Constant Currency (1) 
% Increase/(Decrease)

REVENUES:

             

New vehicle retail sales

$

64,172

 

$

69,233

 

(7.3)

 

7.6

Used vehicle retail sales

21,224

 

24,191

 

(12.3)

 

1.7

Used vehicle wholesale sales

4,050

 

3,842

 

5.4

 

22.9

Total used

25,274

 

28,033

 

(9.8)

 

4.6

Parts and service

12,006

 

11,860

 

1.2

 

17.5

Finance, insurance and other, net

1,984

 

1,872

 

6.0

 

22.7

Total

$

103,436

 

$

110,998

 

(6.8)

 

8.1

GROSS MARGIN %:

             

New vehicle retail sales

5.9

 

5.5

       

Used vehicle retail sales

5.8

 

6.0

       

Used vehicle wholesale sales

7.3

 

3.9

       

Total used

6.1

 

5.7

       

Parts and service

43.8

 

45.3

       

Finance, insurance and other, net

100.0

 

100.0

       

Total

12.2

 

11.4

       

GROSS PROFIT:

             

New vehicle retail sales

$

3,815

 

$

3,781

 

0.9

 

17.1

Used vehicle retail sales

1,237

 

1,450

 

(14.7)

 

(1.0)

Used vehicle wholesale sales

297

 

151

 

96.7

 

127.9

Total used

1,534

 

1,601

 

(4.2)

 

11.2

Parts and service

5,258

 

5,373

 

(2.1)

 

13.5

Finance, insurance and other, net

1,984

 

1,872

 

6.0

 

22.7

Total

$

12,591

 

$

12,627

 

(0.3)

 

15.7

UNITS SOLD:

             

Retail new vehicles sold

2,140

 

2,067

 

3.5

   

Retail used vehicles sold

1,088

 

1,071

 

1.6

   

Wholesale used vehicles sold

472

 

357

 

32.2

   

Total used

1,560

 

1,428

 

9.2

   

AVERAGE RETAIL SALES PRICE:

             

New vehicle retail

$

29,987

 

$

33,494

 

(10.5)

 

3.9

Used vehicle retail

$

19,507

 

$

22,587

 

(13.6)

 

0.1

GROSS PROFIT PER UNIT SOLD:

             

New vehicle retail sales

$

1,783

 

$

1,829

 

(2.5)

 

13.1

Used vehicle retail sales

$

1,137

 

$

1,354

 

(16.0)

 

(2.5)

Used vehicle wholesale sales

$

629

 

$

423

 

48.7

 

72.3

Total used

$

983

 

$

1,121

 

(12.3)

 

1.8

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

$

615

 

$

597

 

3.0

 

19.3

OTHER:

             

SG&A expenses

$

12,363

 

$

11,810

 

4.7

 

21.6

Adjusted SG&A expenses (1)

$

11,791

 

$

11,810

 

(0.2)

 

15.9

SG&A as % revenues

12.0

 

10.6

       

Adjusted SG&A as % revenues (1)

11.4

 

10.6

       

SG&A as % gross profit

98.2

 

93.5

       

Adjusted SG&A as % gross profit (1)

93.7

 

93.5

       

Operating margin %

(0.2)

 

0.4

       

Adjusted operating margin % (1)

0.4

 

0.4

       

Pretax margin %

(0.4)

 

(0.1)

       

Adjusted pretax margin % (1)

0.1

 

(0.1)

       

INTEREST EXPENSE:

             

Floorplan interest expense

$

(101)

 

$

(236)

 

(57.2)

 

(50.0)

Other interest expense, net

$

(160)

 

$

(272)

 

(41.2)

 

(31.8)

 

(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 March 31,

 

2019

 

2018

 

%
Increase/(Decrease)

 

Constant Currency (1) 
% Increase/(Decrease)

REVENUES:

             

New vehicle retail sales

$

1,414,485

 

$

1,513,590

 

(6.5)

 

(4.5)

Used vehicle retail sales

819,203

 

780,570

 

4.9

 

7.2

Used vehicle wholesale sales

92,138

 

104,029

 

(11.4)

 

(7.8)

Total used

911,341

 

884,599

 

3.0

 

5.4

Parts and service

369,174

 

349,515

 

5.6

 

7.3

Finance, insurance and other, net

113,376

 

112,322

 

0.9

 

2.1

Total

$

2,808,376

 

$

2,860,026

 

(1.8)

 

0.3

GROSS MARGIN %:

             

New vehicle retail sales

5.0

 

5.0

       

Used vehicle retail sales

5.8

 

5.6

       

Used vehicle wholesale sales

0.5

 

1.6

       

Total used

5.3

 

5.1

       

Parts and service

53.8

 

53.5

       

Finance, insurance and other, net

100.0

 

100.0

       

Total

15.4

 

14.7

       

GROSS PROFIT:

             

New vehicle retail sales

$

71,391

 

$

75,427

 

(5.4)

 

(3.1)

Used vehicle retail sales

47,809

 

43,495

 

9.9

 

11.7

Used vehicle wholesale sales

451

 

1,655

 

(72.7)

 

(80.6)

Total used

48,260

 

45,150

 

6.9

 

8.3

Parts and service

198,476

 

186,864

 

6.2

 

7.9

Finance, insurance and other, net

113,376

 

112,322

 

0.9

 

2.1

Total

$

431,503

 

$

419,763

 

2.8

 

4.4

UNITS SOLD:

             

Retail new vehicles sold

38,874

 

41,190

 

(5.6)

   

Retail used vehicles sold

38,836

 

36,216

 

7.2

   

Wholesale used vehicles sold

12,989

 

15,327

 

(15.3)

   

Total used

51,825

 

51,543

 

0.5

   

AVERAGE RETAIL SALES PRICE:

             

New vehicle retail

$

36,386

 

$

36,747

 

(1.0)

 

1.2

Used vehicle retail

$

21,094

 

$

21,553

 

(2.1)

 

(0.1)

GROSS PROFIT PER UNIT SOLD:

             

New vehicle retail sales

$

1,836

 

$

1,831

 

0.3

 

2.6

Used vehicle retail sales

$

1,231

 

$

1,201

 

2.5

 

4.1

Used vehicle wholesale sales

$

35

 

$

108

 

(67.6)

 

(77.1)

Total used

$

931

 

$

876

 

6.3

 

7.7

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

$

1,459

 

$

1,451

 

0.6

 

1.7

OTHER:

             

SG&A expenses

$

327,708

 

$

324,347

 

1.0

 

2.9

Adjusted SG&A expenses (1)

$

328,550

 

$

324,347

 

1.3

 

3.1

SG&A as % revenues

11.7

 

11.3

       

Adjusted SG&A as % revenues (1)

11.7

 

11.3

       

SG&A as % gross profit

75.9

 

77.3

       

Adjusted SG&A as % gross profit (1)

76.1

 

77.3

       

Operating margin %

3.1

 

2.8

       

Adjusted operating margin % (1)

3.1

 

2.8

       

Pretax margin %

1.9

 

1.6

       

Adjusted pretax margin % (1)

1.8

 

1.6

       

INTEREST EXPENSE:

             

Floorplan interest expense

$

(15,703)

 

$

(14,087)

 

11.5

 

12.4

Floorplan assistance

10,483

 

11,035

 

(5.0)

 

(4.9)

Net floorplan expense

$

(5,220)

 

$

(3,052)

 

71.0

 

74.9

Other interest expense, net

$

(18,919)

 

$

(18,820)

 

(0.5)

 

1.2

 

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

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)

   
 

Three Months Ended March 31,

   
 

2019

 

2018

 

% Increase/(Decrease)

REVENUES:

         

New vehicle retail sales

$

1,004,977

 

$

1,061,294

 

(5.3)

Used vehicle retail sales

577,645

 

549,242

 

5.2

Used vehicle wholesale sales

41,874

 

52,539

 

(20.3)

Total used

619,519

 

601,781

 

2.9

Parts and service

293,980

 

275,288

 

6.8

Finance, insurance and other, net

93,711

 

94,106

 

(0.4)

Total

$

2,012,187

 

$

2,032,469

 

(1.0)

GROSS MARGIN %:

         

New vehicle retail sales

4.9

 

4.8

   

Used vehicle retail sales

6.5

 

5.9

   

Used vehicle wholesale sales

2.9

 

2.7

   

Total used

6.2

 

5.7

   

Parts and service

53.8

 

53.4

   

Finance, insurance and other, net

100.0

 

100.0

   

Total

16.9

 

16.1

   

GROSS PROFIT:

         

New vehicle retail sales

$

49,404

 

$

51,471

 

(4.0)

Used vehicle retail sales

37,335

 

32,589

 

14.6

Used vehicle wholesale sales

1,199

 

1,429

 

(16.1)

Total used

38,534

 

34,018

 

13.3

Parts and service

158,025

 

146,975

 

7.5

Finance, insurance and other, net

93,711

 

94,106

 

(0.4)

Total

$

339,674

 

$

326,570

 

4.0

UNITS SOLD:

         

Retail new vehicles sold

25,569

 

28,007

 

(8.7)

Retail used vehicles sold

28,389

 

26,635

 

6.6

Wholesale used vehicles sold

6,921

 

9,171

 

(24.5)

Total used

35,310

 

35,806

 

(1.4)

AVERAGE RETAIL SALES PRICE:

         

New vehicle retail

$

39,305

 

$

37,894

 

3.7

Used vehicle retail

$

20,347

 

$

20,621

 

(1.3)

GROSS PROFIT PER UNIT SOLD:

         

New vehicle retail sales

$

1,932

 

$

1,838

 

5.1

Used vehicle retail sales

$

1,315

 

$

1,224

 

7.4

Used vehicle wholesale sales

$

173

 

$

156

 

10.9

Total used

$

1,091

 

$

950

 

14.8

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

$

1,737

 

$

1,722

 

0.9

OTHER:

         

SG&A expenses

$

253,287

 

$

244,952

 

3.4

Adjusted SG&A expenses (2)

$

250,561

 

$

244,952

 

2.3

SG&A as % revenues

12.6

 

12.1

   

Adjusted SG&A as % revenues (2)

12.5

 

12.1

   

SG&A as % gross profit

74.6

 

75.0

   

Adjusted SG&A as % gross profit (2)

73.8

 

75.0

   

Operating margin %

3.6

 

3.4

   

Adjusted operating margin % (2)

3.8

 

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.

 

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)

   
 

Three Months Ended March 31,

 

2019

 

2018

 

%
Increase/(Decrease)

 

Constant Currency (2)
% Increase/(Decrease)

REVENUES:

             

New vehicle retail sales

$

280,164

 

$

325,262

 

(13.9)

 

(8.2)

Used vehicle retail sales

177,855

 

182,918

 

(2.8)

 

3.9

Used vehicle wholesale sales

41,221

 

44,568

 

(7.5)

 

(1.2)

Total used

219,076

 

227,486

 

(3.7)

 

2.9

Parts and service

50,745

 

48,224

 

5.2

 

12.4

Finance, insurance and other, net

13,658

 

13,467

 

1.4

 

8.1

Total

$

563,643

 

$

614,439

 

(8.3)

 

(2.1)

GROSS MARGIN %:

             

New vehicle retail sales

5.5

 

5.4

       

Used vehicle retail sales

4.0

 

4.5

       

Used vehicle wholesale sales

(1.9)

 

0.2

       

Total used

2.9

 

3.7

       

Parts and service

54.9

 

57.0

       

Finance, insurance and other, net

100.0

 

100.0

       

Total

11.2

 

10.9

       

GROSS PROFIT:

             

New vehicle retail sales

$

15,493

 

$

17,506

 

(11.5)

 

(5.9)

Used vehicle retail sales

7,073

 

8,320

 

(15.0)

 

(9.2)

Used vehicle wholesale sales

(788)

 

98

 

(904.1)

 

(1,018.0)

Total used

6,285

 

8,418

 

(25.3)

 

(21.0)

Parts and service

27,842

 

27,501

 

1.2

 

8.1

Finance, insurance and other, net

13,658

 

13,467

 

1.4

 

8.1

Total

$

63,278

 

$

66,892

 

(5.4)

 

0.9

UNITS SOLD:

             

Retail new vehicles sold

9,215

 

9,657

 

(4.6)

   

Retail used vehicles sold

7,291

 

7,369

 

(1.1)

   

Wholesale used vehicles sold

4,870

 

5,391

 

(9.7)

   

Total used

12,161

 

12,760

 

(4.7)

   

AVERAGE RETAIL SALES PRICE:

             

New vehicle retail

$

30,403

 

$

33,681

 

(9.7)

 

(3.8)

Used vehicle retail

$

24,394

 

$

24,823

 

(1.7)

 

5.0

GROSS PROFIT PER UNIT SOLD:

             

New vehicle retail sales

$

1,681

 

$

1,813

 

(7.3)

 

(1.4)

Used vehicle retail sales

$

970

 

$

1,129

 

(14.1)

 

(8.2)

Used vehicle wholesale sales

$

(162)

 

$

18

 

(1,000.0)

 

(1,116.2)

Total used

$

517

 

$

660

 

(21.7)

 

(17.1)

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

$

827

 

$

791

 

4.6

 

11.6

OTHER:

             

SG&A expenses

$

51,288

 

$

55,284

 

(7.2)

 

(0.9)

SG&A as % revenues

9.1

 

9.0

       

SG&A as % gross profit

81.1

 

82.6

       

Operating margin %

1.6

 

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 March 31,

 

2019

 

2018

 

%
Increase/(Decrease)

 

Constant Currency (2)
% Increase/(Decrease)

REVENUES:

             

New vehicle retail sales

$

56,916

 

$

69,233

 

(17.8)

 

(4.6)

Used vehicle retail sales

19,443

 

24,191

 

(19.6)

 

(6.8)

Used vehicle wholesale sales

4,050

 

3,842

 

5.4

 

22.9

Total used

23,493

 

28,033

 

(16.2)

 

(2.8)

Parts and service

11,270

 

11,860

 

(5.0)

 

10.2

Finance, insurance and other, net

1,715

 

1,872

 

(8.4)

 

6.0

Total

$

93,394

 

$

110,998

 

(15.9)

 

(2.4)

GROSS MARGIN %:

             

New vehicle retail sales

6.0

 

5.5

       

Used vehicle retail sales

5.7

 

6.0

       

Used vehicle wholesale sales

7.3

 

3.9

       

Total used

6.0

 

5.7

       

Parts and service

43.5

 

45.3

       

Finance, insurance and other, net

100.0

 

100.0

       

Total

12.2

 

11.4

       

GROSS PROFIT:

             

New vehicle retail sales

$

3,415

 

$

3,781

 

(9.7)

 

4.8

Used vehicle retail sales

1,102

 

1,452

 

(24.1)

 

(11.8)

Used vehicle wholesale sales

297

 

151

 

96.7

 

127.9

Total used

1,399

 

1,603

 

(12.7)

 

1.3

Parts and service

4,906

 

5,373

 

(8.7)

 

5.9

Finance, insurance and other, net

1,715

 

1,872

 

(8.4)

 

6.0

Total

$

11,435

 

$

12,629

 

(9.5)

 

5.0

UNITS SOLD:

             

Retail new vehicles sold

1,850

 

2,067

 

(10.5)

   

Retail used vehicles sold

991

 

1,071

 

(7.5)

   

Wholesale used vehicles sold

411

 

357

 

15.1

   

Total used

1,402

 

1,428

 

(1.8)

   

AVERAGE RETAIL SALES PRICE:

             

New vehicle retail

$

30,765

 

$

33,494

 

(8.1)

 

6.6

Used vehicle retail

$

19,620

 

$

22,587

 

(13.1)

 

0.7

GROSS PROFIT PER UNIT SOLD:

             

New vehicle retail sales

$

1,846

 

$

1,829

 

0.9

 

17.1

Used vehicle retail sales

$

1,112

 

$

1,356

 

(18.0)

 

(4.7)

Used vehicle wholesale sales

$

723

 

$

423

 

70.9

 

97.9

Total used

$

998

 

$

1,123

 

(11.1)

 

3.2

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

$

604

 

$

597

 

1.2

 

17.1

OTHER:

             

SG&A expenses

$

11,062

 

$

11,731

 

(5.7)

 

9.4

SG&A as % revenues

11.8

 

10.6

       

SG&A as % gross profit

96.7

 

92.9

       

Operating margin %

 

0.5

       
 

(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.

 

Group 1 Automotive, Inc.

Additional Information - Same Store Consolidated (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)

   
 

Three Months Ended March 31,

 

2019

 

2018

 

%
Increase/(Decrease)

 

Constant Currency (2)
% Increase/(Decrease)

REVENUES:

             

New vehicle retail sales

$

1,342,057

 

$

1,455,789

 

(7.8)

 

(5.9)

Used vehicle retail sales

774,943

 

756,351

 

2.5

 

4.5

Used vehicle wholesale sales

87,145

 

100,949

 

(13.7)

 

(10.2)

Total used

862,088

 

857,300

 

0.6

 

2.7

Parts and service

355,995

 

335,372

 

6.1

 

7.7

Finance, insurance and other, net

109,084

 

109,445

 

(0.3)

 

0.7

Total

$

2,669,224

 

$

2,757,906

 

(3.2)

 

(1.3)

GROSS MARGIN %:

             

New vehicle retail sales

5.1

 

5.0

     

Used vehicle retail sales

5.9

 

5.6

     

Used vehicle wholesale sales

0.8

 

1.7

     

Total used

5.4

 

5.1

     

Parts and service

53.6

 

53.6

     

Finance, insurance and other, net

100.0

 

100.0

     

Total

15.5

 

14.7

     

GROSS PROFIT:

           

New vehicle retail sales

$

68,312

 

$

72,758

 

(6.1)

 

(4.0)

Used vehicle retail sales

45,510

 

42,361

 

7.4

 

9.0

Used vehicle wholesale sales

708

 

1,678

 

(57.8)

 

(62.0)

Total used

46,218

 

44,039

 

4.9

 

6.3

Parts and service

190,773

 

179,849

 

6.1

 

7.6

Finance, insurance and other, net

109,084

 

109,445

 

(0.3)

 

0.7

Total

$

414,387

 

$

406,091

 

2.0

 

3.5

UNITS SOLD:

           

Retail new vehicles sold

36,634

 

39,731

 

(7.8)

   

Retail used vehicles sold

36,671

 

35,075

 

4.6

   

Wholesale used vehicles sold

12,202

 

14,919

 

(18.2)

   

Total used

48,873

 

49,994

 

(2.2)

   

AVERAGE RETAIL SALES PRICE:

           

New vehicle retail

$

36,634

 

$

36,641

 

 

2.0

Used vehicle retail

$

21,132

 

$

21,564

 

(2.0)

 

(0.1)

GROSS PROFIT PER UNIT SOLD:

           

New vehicle retail sales

$

1,865

 

$

1,831

 

1.9

 

4.1

Used vehicle retail sales

$

1,241

 

$

1,208

 

2.7

 

4.3

Used vehicle wholesale sales

$

58

 

$

112

 

(48.2)

 

(53.5)

Total used

$

946

 

$

881

 

7.4

 

8.7

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

$

1,488

 

$

1,463

 

1.7

 

2.8

OTHER:

           

SG&A expenses

$

315,637

 

$

311,967

 

1.2

 

2.9

Adjusted SG&A expenses (2)

$

312,911

 

$

311,967

 

0.3

 

2.0

SG&A as % revenues

11.8

 

11.3

     

Adjusted SG&A as % revenues (2)

11.7

 

11.3

     

SG&A as % gross profit

76.2

 

76.8

     

Adjusted SG&A as % gross profit (2)

75.5

 

76.8

     

Operating margin %

3.1

 

2.8

     

Adjusted operating margin % (2)

3.2

 

2.8

     

 

 

(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.

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

(Unaudited)

(Dollars in thousands)

     
   

Three Months Ended March 31,

   

2019

 

2018

 

% Increase/
(Decrease)

SG&A RECONCILIATION:

         
 

As reported

$

256,153

 

$

252,941

 

1.3

 
 

  Pre-tax adjustments:

         
 

Catastrophic events

(1,973)

 

   
 

Gain (loss) on real estate and dealership transactions

5,216

 

   
 

Legal settlements

(1,829)

 

   
 

Adjusted SG&A (1)

$

257,567

 

$

252,941

 

1.8

 

SG&A AS % REVENUES:

         
 

Unadjusted

12.4

 

12.1

   
 

Adjusted (1)

12.5

 

12.1

   

SG&A AS % GROSS PROFIT:

         
 

Unadjusted

73.8

 

75.4

   
 

Adjusted (1)

74.2

 

75.4

   

OPERATING MARGIN %:

         
 

Unadjusted

3.8

 

3.3

   
 

Adjusted (1), (2)

3.7

 

3.3

   

PRETAX MARGIN %:

         
 

Unadjusted

2.2

 

1.9

   
 

Adjusted (1), (2)

2.2

 

1.9

   

SAME STORE SG&A RECONCILIATION:

         
 

As reported

$

253,287

 

$

244,952

 

3.4

 
 

  Pre-tax adjustments:

         
 

Catastrophic events

(1,973)

 

   
 

Gain (loss) on real estate and dealership transactions

1,076

 

   
 

Legal settlements

(1,829)

 

   
 

Adjusted Same Store SG&A (1)

$

250,561

 

$

244,952

 

2.3

 

SAME STORE SG&A AS % REVENUES:

         
 

Unadjusted

12.6

 

12.1

   
 

Adjusted (1)

12.5

 

12.1

   

SAME STORE SG&A AS % GROSS PROFIT:

         
 

Unadjusted

74.6

 

75.0

   
 

Adjusted (1)

73.8

 

75.0

   

SAME STORE OPERATING MARGIN %:

         
 

Unadjusted

3.6

 

3.4

   
 

Adjusted (1), (3)

3.8

 

3.4

   

 

 

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

(2) Excludes the impact of SG&A reconciling items above for the three months ended March 31, 2019.

(3) Excludes the impact of Same Store SG&A reconciling items above for the three months ended March 31, 2019.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Brazil

(Unaudited)

 (Dollars in thousands)

     
   

Three Months Ended March 31,

   

2019

 

2018

 

%
Increase/(Decrease)

SG&A RECONCILIATION:

         
 

As reported

$

12,363

 

$

11,810

 

4.7

 
 

  Pre-tax adjustments:

         
 

Legal settlements

(572)

 

   
 

Adjusted SG&A (1)

$

11,791

 

$

11,810

 

(0.2)

 

SG&A AS % REVENUES:

     
 

Unadjusted

12.0

 

10.6

   
 

Adjusted (1)

11.4

 

10.6

   

SG&A AS % GROSS PROFIT:

     
 

Unadjusted

98.2

 

93.5

   
 

Adjusted (1)

93.7

 

93.5

   

OPERATING MARGIN %:

     
 

Unadjusted

(0.2)

 

0.4

   
 

Adjusted (1), (2)

0.4

 

0.4

   

PRETAX MARGIN %:

     
 

Unadjusted

(0.4)

 

(0.1)

   
 

Adjusted (1), (2)

0.1

 

(0.1)

   
 

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

(2) Excludes the impact of SG&A reconciling items above for the three months ended March 31, 2019.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Consolidated

(Unaudited)

 (Dollars in thousands, except per share amounts)

     
   

Three Months Ended March 31,

   

2019

 

2018

 

%
Increase/(Decrease)

NET INCOME RECONCILIATION:

         
 

As reported

         
 

  Pretax Net Income

$

52,176

 

$

46,167

   
 

  Income Tax Provision

(13,528)

 

(10,353)

   
 

    Net Income

$

38,648

 

$

35,814

 

7.9

 
 

      Effective Tax Rate

25.9%

 

22.4%

   
 

Adjustments:

         
 

Catastrophic events

         
 

Pre-tax

$

1,973

 

$

   
 

Tax impact

$

(519)

 

$

   
 

(Gain) loss on real estate and dealership transactions

         
 

Pre-tax

$

(5,216)

 

$

   
 

Tax impact

$

1,381

 

$

   
 

Legal settlements

         
 

Pre-tax

$

2,401

 

$

   
 

Tax impact

$

(481)

 

$

   
 

Adjusted

       
 

  Pretax Net Income

$

51,334

 

$

46,167

   
 

  Income Tax Provision

(13,147)

 

(10,353)

   
 

Adjusted net income (1)

$

38,187

 

$

35,814

 

6.6

 
 

      Effective Tax Rate

25.6%

 

22.4%

   

ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED

       
 

COMMON SHARES RECONCILIATION:

       
 

Adjusted net income (1)

$

38,187

 

$

35,814

 

6.6

 
 

Less: Adjusted earnings allocated to participating securities

1,437

 

1,208

 

19.0

 
 

Adjusted net income available to diluted common shares (1)

$

36,750

 

$

34,606

 

6.2

 

DILUTED (LOSS) INCOME PER COMMON SHARE RECONCILIATION:

       
 

As reported

$

2.08

 

$

1.70

 

22.4

 
 

  After-tax adjustments:

       
 

Catastrophic events

0.08

 

   
 

(Gain) loss on real estate and dealership transactions

(0.20)

 

   
 

Legal settlements

0.10

 

   
 

Adjusted diluted income per share (1)

$

2.06

 

$

1.70

 

21.2

 

SG&A RECONCILIATION:

       
 

As reported

$

327,708

 

$

324,347

 

1.0

 
 

  Pre-tax adjustments:

       
 

Catastrophic events

(1,973)

 

   
 

Gain (loss) on real estate and dealership transactions

5,216

 

   
 

Legal settlements

(2,401)

 

   
 

Adjusted SG&A (1)

$

328,550

 

$

324,347

 

1.3

 

SG&A AS % REVENUES:

       
 

Unadjusted

11.7

 

11.3

   
 

Adjusted (1)

11.7

 

11.3

   

SG&A AS % GROSS PROFIT:

       
 

Unadjusted

75.9

 

77.3

   
 

Adjusted (1)

76.1

 

77.3

   

OPERATING MARGIN %:

       
 

Unadjusted

3.1

 

2.8

   
 

Adjusted (1), (2)

3.1

 

2.8

   

PRETAX MARGIN %:

       
 

Unadjusted

1.9

 

1.6

   
 

Adjusted (1), (2)

1.8

 

1.6

   

SAME STORE SG&A RECONCILIATION:

       
 

As reported

$

315,637

 

$

311,967

 

1.2

 
 

  Pre-tax adjustments:

       
 

Catastrophic events

(1,973)

 

   
 

Gain (loss) on real estate and dealership transactions

1,076

 

   
 

Legal settlements

(1,829)

 

   
 

Adjusted Same Store SG&A (1)

$

312,911

 

$

311,967

 

0.3

 

SAME STORE SG&A AS % REVENUES:

       
 

Unadjusted

11.8

 

11.3

   
 

Adjusted (1)

11.7

 

11.3

   

SAME STORE SG&A AS % GROSS PROFIT:

       
 

Unadjusted

76.2

 

76.8

   
 

Adjusted (1)

75.5

 

76.8

   

SAME STORE OPERATING MARGIN %:

       
 

Unadjusted

3.1

 

2.8

   
 

Adjusted (1), (3)

3.2

 

2.8

   
 

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

(2) Excludes the impact of SG&A reconciling items above for the three months ended March 31, 2019.

(3) Excludes the impact of Same Store SG&A reconciling items above for the three months ended March 31, 2019.

 

 

 

 

 

 

SOURCE Group 1 Automotive, Inc.