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Group 1 Automotive

800 Gessner
Houston, TX 77024

  • Sales: (713) 647-5700
Investor Relations

Group 1 Automotive Announces Second Quarter 2019 Financial Results

Strong Results Driven by Significant Increase in U.S. Same Store Parts & Service Revenue and Record U.S. F&I Profit per Unit Performance

HOUSTON, July 25, 2019 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), ("Group 1" or the "Company"), an international, Fortune 500 automotive retailer, today reported 2019 second quarter net income of $49.2 million, diluted earnings per common share of $2.64, adjusted net income (a non-GAAP measure) of $52.8 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $2.83.

Second quarter 2019 adjusted net income and diluted earnings per share exclude approximately $3.5 million net after-tax adjustments, or $0.19 per common share. These adjustments consist primarily of $3.0 million related to catastrophic weather events, or $0.16 per common share; and non-cash asset impairments of $0.5 million, or $0.03 per common share.

"We delivered a strong quarter based on exceptional results in the U.S. despite a soft new vehicle sales market.  Record Same Store parts and service revenue growth of more than 10 percent and record F&I per retail unit profitability drove Same Store gross profit growth of 8.5 percent," said Earl J. Hesterberg, Group 1's president and chief executive officer.  "This performance demonstrates that we can continue to increase profits in a less than optimal new vehicle sales environment."

"In contrast to our strong U.S. performance, we saw significant weakness in our U.K. operations.  Weak overall market conditions stemming from BREXIT uncertainty were compounded by a decline in used vehicle market values.  We are in the midst of a significant cost reduction effort in the U.K. to respond to these market fluctuations," added Hesterberg.

Consolidated Results for Second 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 grew 2.1 percent (3.7 percent), to $3.0 billion.
  • Total gross profit grew 3.7 percent (4.8 percent), to $454.3 million.
  • New vehicle revenues increased 0.6 percent (2.2 percent), despite a slight decrease in unit sales. New vehicle gross profit decreased 9.0 percent (decreased 7.7 percent), to $69.7 million, largely explained by the decision to forego certain OEM volume bonuses in the U.K. by not self-registering vehicles this quarter.
  • Retail used vehicle revenues increased 2.1 percent (3.7 percent) on 4.6 percent higher unit sales. Retail used vehicle gross profit increased 4.1 percent (5.4 percent), to $53.3 million. Total used vehicle gross profit was up 3.4 percent (4.7 percent), to $53.2 million. In the U.S., the Val-u-Line® initiative the Company launched last year has continued to build momentum, with Same Store used retail unit sales increasing 7.0 percent, and Val-u-Line® units growing to over 11 percent of the mix.  
  • Parts and service gross profit increased 4.6 percent (5.8 percent), to $204.1 million, on revenue growth of 5.6 percent (6.8 percent). Same Store parts and service gross profit increased 6.0 percent (7.2 percent) on Same Store parts and service revenue growth of 7.9 percent (9.1 percent). U.S. Same Store parts and service revenue increased by 10.1 percent, establishing a new all-time quarterly growth record.
  • Finance and Insurance (F&I) gross profit per retail unit (PRU) increased 10.1 percent (11.0 percent), to $1,555 and total F&I gross profit increased $12.2 million, or 10.6 percent (11.5 percent), to $127.3 million. Same Store U.S. F&I PRU increased $161, or 9.7 percent, to a new all-time record of $1,821 per unit.
  • Selling, General and Administrative (SG&A) expenses as a percent of gross profit increased 430 basis points, to 74.6 percent. Adjusted Same Store SG&A as a percent of gross profit increased 80 basis points, to 73.6 percent, which is more than explained by gross profit deterioration in the U.K., partially offset by U.S. Same Store SG&A as a percent of gross profit, which decreased 60 basis points, to 71.1 percent, and adjusted Same Store U.S. SG&A as a percent of gross profit, which decreased 40 basis points, to 70.0 percent.

 

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

  • United States:

    The Company's U.S. operations accounted for 75.8 percent of total revenues and 82.9 percent of total gross profit. Total Same Store U.S. revenues were up 6.1 percent. These results were driven by double-digit growth in Same Store F&I revenue (up 13.4 percent), parts and service revenue (up 10.1 percent), as well as mid-single digit gains in used retail revenue (up 5.9 percent), and new vehicle retail revenue (up 4.6 percent). Same Store F&I gross profit PRU increased $161, or 9.7 percent per unit, to $1,821, and Same Store total gross profit grew 8.5 percent.

    Same Store new vehicle retail gross profit PRU declined $39, to $1,810. Same Store total used vehicle gross profit PRU increased 5.6 percent, or $63, to $1,197, reflecting the impact of the used vehicle initiatives we launched last year.

    Same Store operating margin increased 30 basis points, to 4.2 percent and adjusted Same Store operating margin increased 20 basis points, to 4.4 percent.

    "We are very pleased with our U.S. performance as the numerous initiatives we have implemented across our used vehicle and service departments continue to gain traction and deliver strong Same Store growth," said Daryl Kenningham, Group 1's president of U.S. operations. "We are particularly pleased with the increased level of hiring and retention of service technicians and advisors, with Same Store headcount for both positions increasing by double-digit percentage points compared to the prior year period.  This has driven the highest level of quarterly growth in U.S. Same Store parts and service revenue that we have ever seen."
     
  • United Kingdom:

    The Company's U.K. operations accounted for 20.4 percent of total revenues and 14.1 percent of total gross profit. Total Same Store U.K. revenues decreased 7.5 percent (decreased 2.1 percent), to $603.7 million. Same Store new vehicle units sold decreased 11.5 percent.  Same Store total gross profit decreased 15.1 percent (decreased 10.3 percent), to $61.9 million.

    Same Store SG&A expenses as a percent of gross profit increased 10.2 percentage points, to 92.1 percent; and operating margin decreased 120 basis points, to 0.3 percent.
     
  • Brazil:

    The Company's Brazilian operations accounted for 3.8 percent of total revenues and 3.0 percent of total gross profit. The Company's Same Store new vehicle revenue grew 9.1 percent on a constant currency basis, with units up 7.0 percent. On a Same Store constant currency basis, total revenues grew 8.0 percent, driven by revenue growth of the aforementioned 9.1 percent in new vehicles, 3.9 percent in total used vehicles, and 14.0 percent in parts & service.

    SG&A expenses as a percent of gross profit improved 500 basis points, to 86.1 percent. Adjusted Same Store SG&A expenses as a percent of gross profit increased 400 basis points, to 90.5 percent.

 

Corporate Development

As previously announced in July 2019, the Company acquired two BMW and two MINI franchises in New Mexico, which are expected to generate approximately $100 million in annualized revenues.

Additionally, as recently announced in July 2019, the Company acquired five Volkswagen franchise dealerships in the County of Essex, northeast of London.  This transaction includes four Volkswagen and one Volkswagen Commercial Vehicle franchises and adds further scale to Group 1's numerous existing operations in Essex.  Specifically, the acquired operations are located in the cities of Chelmsford, Colchester, Romford and Southend. This acquisition is expected to generate approximately $115 million in annualized revenues.  The addition of these stores increases the Company's U.K. operations to 49 dealerships (65 franchises), which includes 11 existing brands (Audi, BMW, Ford, Jaguar, Kia, Land Rover, MINI, SEAT, Skoda, Toyota, and Volkswagen Commercial Vehicles).

In June 2019, the Company disposed of four franchises, which included BMW and MINI franchises in Watford (U.K.), a Volkswagen Commercial Vehicle franchise in Hatfield (U.K.), as well as a Mercedes-Benz franchise in Campo Grande (Brazil). These four franchises generated approximately $80 million in trailing-twelve-month revenues.

Year-to-date 2019, the Company has acquired a total of 11 franchises, which are expected to generate an estimated $255 million in annual revenues; and the Company has disposed of 11 franchises, which generated approximately $200 million in trailing-twelve-month revenues.

Second Quarter 2019 Earnings Conference Call Details

Group 1's senior management will host a conference call today at 9 a.m. ET to discuss the second quarter financial results and the Company's outlook and strategy.

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

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

Domestic:

1-888-317-6003

International:

1-412-317-6061

Conference ID:

4859924

A telephonic replay will be available following the call through August 1, 2019 by dialing:

Domestic:

1-877-344-7529

International:

1-412-317-0088

Replay ID:

10133445

ABOUT GROUP 1 AUTOMOTIVE, INC.
Group 1 owns and operates 184 automotive dealerships, 239 franchises, and 48 collision centers in the United States, the United Kingdom and Brazil that offer 31 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 AND SAME STORE DATA
In addition to evaluating the financial condition and results of our operations in accordance with U.S. 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, profitability improvement initiatives, and other events outside of normal, or "core," business and operations, by considering alternative financial measures not prepared in accordance with U.S. GAAP. 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, legal matters, gains and losses on dealership franchise or real estate transactions, and catastrophic events, such as hailstorms, 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. This includes evaluating measures such as adjusted selling, general and administrative expenses, adjusted net income, adjusted diluted income per share, and constant currency. 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 U.S. 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 U.S. GAAP. We caution investors not to place undue reliance on such non-GAAP measures, but also to consider them with the most directly comparable U.S. GAAP measures.

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 U.S. 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.

The Same Store amounts presented include the results of dealerships for the identical months in each period presented in comparison, commencing with the first full month in which the dealership was owned by us and, in the case of dispositions, ending with the last full month it was owned by us. Same Store results also include the activities of our corporate headquarters.

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.

Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)

             
   

Three Months Ended June 30,

   

2019

 

2018

 

%
Increase/(Decrease)

REVENUES

           

New vehicle retail sales

 

$

1,565,375

   

$

1,555,570

   

0.6

 

Used vehicle retail sales

 

838,896

   

821,853

   

2.1

 

Used vehicle wholesale sales

 

95,996

   

92,854

   

3.4

 

Parts and service sales

 

378,167

   

358,129

   

5.6

 

Finance, insurance and other, net

 

127,255

   

115,056

   

10.6

 

Total revenues

 

3,005,689

   

2,943,462

   

2.1

 

COST OF SALES

           

New vehicle retail sales

 

1,495,671

   

1,478,988

   

1.1

 

Used vehicle retail sales

 

785,604

   

770,639

   

1.9

 

Used vehicle wholesale sales

 

96,089

   

92,613

   

3.8

 

Parts and service sales

 

174,072

   

163,059

   

6.8

 

Total cost of sales

 

2,551,436

   

2,505,299

   

1.8

 

GROSS PROFIT

 

454,253

   

438,163

   

3.7

 

Selling, general and administrative expenses

 

338,715

   

308,092

   

9.9

 

Depreciation and amortization expense

 

17,864

   

16,638

   

7.4

 

Asset impairments

 

537

   

4,268

   

(87.4)

 

INCOME (LOSS) FROM OPERATIONS

 

97,137

   

109,165

   

(11.0)

 

OTHER INCOME (EXPENSE)

           

Floorplan interest expense

 

(15,943)

   

(14,563)

   

9.5

 

Other interest expense, net

 

(17,961)

   

(19,414)

   

(7.5)

 

INCOME (LOSS) BEFORE INCOME TAXES

 

63,233

   

75,188

   

(15.9)

 

Benefit (provision) for income taxes

 

(14,008)

   

(18,725)

   

(25.2)

 

NET INCOME (LOSS)

 

$

49,225

   

$

56,463

   

(12.8)

 

Less: earnings allocated to participating securities

 

$

1,842

   

$

1,916

   

(3.9)

 

Earnings available to diluted common shares

 

$

47,383

   

$

54,547

   

(13.1)

 

DILUTED EARNINGS (LOSS) PER SHARE

 

$

2.64

   

$

2.72

   

(2.9)

 

Weighted average dilutive common shares outstanding

 

17,930

   

20,046

   

(10.6)

 

Weighted average participating securities

 

702

   

708

   

(0.8)

 

Total weighted average shares

 

18,632

   

20,754

   

(10.2)

 

 

 

Group 1 Automotive, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)

             
   

Six Months Ended June 30,

   

2019

 

2018

 

%
Increase/(Decrease)

REVENUES

           

New vehicle retail sales

 

$

2,979,860

   

$

3,069,160

   

(2.9)

 

Used vehicle retail sales

 

1,658,099

   

1,602,423

   

3.5

 

Used vehicle wholesale sales

 

188,134

   

196,883

   

(4.4)

 

Parts and service sales

 

747,341

   

707,644

   

5.6

 

Finance, insurance and other, net

 

240,631

   

227,378

   

5.8

 

Total revenues

 

5,814,065

   

5,803,488

   

0.2

 

COST OF SALES

           

New vehicle retail sales

 

2,838,765

   

2,917,151

   

(2.7)

 

Used vehicle retail sales

 

1,556,998

   

1,507,714

   

3.3

 

Used vehicle wholesale sales

 

187,776

   

194,987

   

(3.7)

 

Parts and service sales

 

344,770

   

325,710

   

5.9

 

Total cost of sales

 

4,928,309

   

4,945,562

   

(0.3)

 

GROSS PROFIT

 

885,756

   

857,926

   

3.2

 

Selling, general and administrative expenses

 

666,423

   

632,439

   

5.4

 

Depreciation and amortization expense

 

34,861

   

32,980

   

5.7

 

Asset impairments

 

537

   

4,268

   

(87.4)

 

INCOME (LOSS) FROM OPERATIONS

 

183,935

   

188,239

   

(2.3)

 

OTHER INCOME (EXPENSE)

           

Floorplan interest expense

 

(31,646)

   

(28,650)

   

10.5

 

Other interest expense, net

 

(36,880)

   

(38,234)

   

(3.5)

 

INCOME (LOSS) BEFORE INCOME TAXES

 

115,409

   

121,355

   

(4.9)

 

Benefit (provision) for income taxes

 

(27,536)

   

(29,078)

   

(5.3)

 

NET INCOME (LOSS)

 

$

87,873

   

$

92,277

   

(4.8)

 

Less: earnings allocated to participating securities

 

$

3,299

   

$

3,123

   

5.6

 

Earnings available to diluted common shares

 

$

84,574

   

$

89,154

   

(5.1)

 

DILUTED EARNINGS (LOSS) PER SHARE

 

$

4.73

   

$

4.42

   

7.0

 

Weighted average dilutive common shares outstanding

 

17,878

   

20,176

   

(11.4)

 

Weighted average participating securities

 

702

   

712

   

(1.4)

 

Total weighted average shares

 

18,580

   

20,888

   

(11.0)

 

 

 

 

Group 1 Automotive, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(Dollars in thousands)

             
   

June 30, 2019

 

December 31, 2018

 

%
Increase/(Decrease)

ASSETS

CURRENT ASSETS

           

Cash and cash equivalents

 

$

37,740

   

$

15,932

   

136.9

 

Contracts in transit and vehicle receivables, net

 

252,529

   

265,660

   

(4.9)

 

Accounts and notes receivable, net

 

188,489

   

193,981

   

(2.8)

 

Inventories, net

 

1,793,671

   

1,844,059

   

(2.7)

 

Prepaid expenses and other current assets

 

89,705

   

82,734

   

8.4

 

TOTAL CURRENT ASSETS

 

2,362,134

   

2,402,366

   

(1.7)

 

Property and equipment, net

 

1,422,986

   

1,347,835

   

5.6

 

Operating lease assets

 

202,719

   

   

100.0

 

Goodwill

 

963,502

   

963,925

   

 

Intangible franchise rights

 

259,540

   

259,630

   

 

Other assets

 

14,880

   

27,319

   

(45.5)

 

TOTAL ASSETS

 

$

5,225,761

   

$

5,001,075

   

4.5

 
             

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES

           

Floorplan notes payable - credit facility and other

 

$

1,199,184

   

$

1,292,452

   

(7.2)

 

Offset account related to floorplan notes payable - credit facility

 

(69,307)

   

(33,637)

   

106.0

 

Floorplan notes payable - manufacturer affiliates

 

426,636

   

417,924

   

2.1

 

Offset account related to floorplan notes payable - manufacturer affiliates

 

(150)

   

(100)

   

50.0

 

Current maturities of long-term debt

 

71,548

   

92,967

   

(23.0)

 

Current operating lease liabilities

 

23,504

   

   

100.0

 

Accounts payable

 

485,908

   

419,350

   

15.9

 

Accrued expenses and other current liabilities

 

198,017

   

197,609

   

0.2

 

TOTAL CURRENT LIABILITIES

 

2,335,340

   

2,386,565

   

(2.1)

 

5.00% Senior Notes (principal of $550,000)

 

544,591

   

543,730

   

0.2

 

5.25% Senior Notes (principal of $300,000)

 

297,035

   

296,735

   

0.1

 

Acquisition line

 

38,113

   

31,842

   

19.7

 

Real estate related and other long-term debt, net of current maturities

 

367,843

   

366,723

   

0.3

 

Finance leases, net of current maturities

 

48,138

   

42,459

   

13.4

 

Operating lease liabilities, net of current portion

 

193,421

   

   

100.0

 

Deferred income taxes

 

134,649

   

134,683

   

 

Other liabilities

 

102,566

   

102,644

   

(0.1)

 

STOCKHOLDERS' EQUITY

           

Common stock

 

255

   

255

   

 

Additional paid-in capital

 

288,197

   

292,774

   

(1.6)

 

Retained earnings

 

1,466,963

   

1,394,817

   

5.2

 

Accumulated other comprehensive income (loss)

 

(152,530)

   

(137,772)

   

10.7

 

Treasury stock

 

(438,820)

   

(454,380)

   

(3.4)

 

TOTAL STOCKHOLDERS' EQUITY

 

1,164,065

   

1,095,694

   

6.2

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

5,225,761

   

$

5,001,075

   

4.5

 

 

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

                   
     

Three Months Ended June 30,

 

Six Months Ended June 30,

     

2019 (%)

 

2018 (%)

 

2019 (%)

 

2018 (%)

NEW VEHICLE UNIT SALES GEOGRAPHIC MIX

             

Region

Geographic Market

               

United States

Texas

 

36.0

   

35.2

   

35.0

   

35.4

 
 

Oklahoma

 

6.8

   

5.9

   

6.5

   

5.9

 
 

California

 

5.8

   

6.4

   

5.6

   

6.5

 
 

Massachusetts

 

4.7

   

4.7

   

4.5

   

4.7

 
 

Georgia

 

4.6

   

4.4

   

4.4

   

4.3

 
 

Florida

 

2.5

   

2.5

   

2.6

   

2.5

 
 

Louisiana

 

2.7

   

1.9

   

2.5

   

1.8

 
 

New Jersey

 

1.7

   

1.7

   

1.8

   

1.6

 
 

New Hampshire

 

1.8

   

1.8

   

1.7

   

1.8

 
 

South Carolina

 

1.7

   

1.6

   

1.7

   

1.6

 
 

Mississippi

 

1.2

   

1.2

   

1.2

   

1.2

 
 

Kansas

 

1.1

   

1.3

   

1.1

   

1.3

 
 

Alabama

 

0.7

   

0.6

   

0.7

   

0.6

 
 

Maryland

 

0.5

   

0.5

   

0.5

   

0.5

 
 

New Mexico

 

0.2

   

0.2

   

0.2

   

0.1

 
     

72.0

   

69.9

   

70.0

   

69.8

 
                   

International

United Kingdom

 

22.0

   

25.1

   

24.2

   

25.2

 
 

Brazil

 

6.0

   

5.0

   

5.8

   

5.0

 
     

100.0

   

100.0

   

100.0

   

100.0

 
                 

NEW VEHICLE UNIT SALES BRAND MIX

             

Toyota/Lexus

 

24.9

   

23.9

   

24.0

   

24.0

 

Volkswagen/Audi/Porsche/SEAT/SKODA

 

13.4

   

15.2

   

14.2

   

14.7

 

BMW/MINI

 

11.9

   

12.2

   

12.2

   

12.4

 

Honda/Acura

 

10.6

   

8.9

   

10.7

   

9.2

 

Ford/Lincoln

 

10.6

   

11.0

   

10.6

   

11.2

 

Chevrolet/GMC/Buick/Cadillac

 

6.7

   

5.7

   

6.5

   

5.8

 

Nissan

 

6.3

   

6.0

   

6.1

   

6.4

 

Mercedes-Benz/smart/Sprinter

 

5.1

   

5.4

   

5.3

   

5.0

 

Hyundai/Kia

 

3.9

   

3.8

   

3.7

   

3.9

 

Chrysler/Dodge/Jeep/RAM

 

3.3

   

4.1

   

3.2

   

4.1

 

Jaguar/Land Rover

 

1.7

   

1.9

   

2.1

   

1.9

 

Other

 

1.6

   

1.9

   

1.4

   

1.4

 
   

100.0

   

100.0

   

100.0

   

100.0

 

 

 

Group 1 Automotive, Inc.

Additional Information - U.S.

(Unaudited)

(Dollars in thousands, except per unit amounts)

             
   

Three Months Ended June 30,

   

2019

 

2018

 

%
Increase/(Decrease)

REVENUES

           

New vehicle retail sales

 

$

1,188,792

   

$

1,146,882

   

3.7

 

Used vehicle retail sales

 

625,452

   

592,007

   

5.6

 

Used vehicle wholesale sales

 

44,285

   

42,781

   

3.5

 

Total used

 

669,737

   

634,788

   

5.5

 

Parts and service sales

 

309,645

   

288,889

   

7.2

 

Finance, insurance and other, net

 

110,506

   

97,442

   

13.4

 

Total revenues

 

$

2,278,680

   

$

2,168,001

   

5.1

 

GROSS MARGIN %

           

New vehicle retail sales

 

4.6

   

4.9

     

Used vehicle retail sales

 

6.9

   

6.6

     

Used vehicle wholesale sales

 

2.1

   

3.6

     

Total used

 

6.6

   

6.4

     

Parts and service sales

 

54.0

   

54.2

     

Finance, insurance and other, net

 

100.0

   

100.0

     

Total gross margin

 

16.5

   

16.2

     

GROSS PROFIT

           

New vehicle retail sales

 

$

54,752

   

$

56,358

   

(2.8)

 

Used vehicle retail sales

 

43,330

   

38,809

   

11.6

 

Used vehicle wholesale sales

 

921

   

1,553

   

(40.7)

 

Total used

 

44,251

   

40,362

   

9.6

 

Parts and service sales

 

167,201

   

156,508

   

6.8

 

Finance, insurance and other, net

 

110,506

   

97,442

   

13.4

 

Total gross profit

 

$

376,710

   

$

350,670

   

7.4

 

UNITS SOLD

           

Retail new vehicles sold

 

30,318

   

30,388

   

(0.2)

 

Retail used vehicles sold

 

30,477

   

28,484

   

7.0

 

Wholesale used vehicles sold

 

6,828

   

7,292

   

(6.4)

 

Total used

 

37,305

   

35,776

   

4.3

 

AVERAGE RETAIL SALES PRICE

           

New vehicle retail

 

$

39,211

   

$

37,741

   

3.9

 

Used vehicle retail

 

$

20,522

   

$

20,784

   

(1.3)

 

GROSS PROFIT PER UNIT SOLD

           

New vehicle retail sales

 

$

1,806

   

$

1,855

   

(2.6)

 

Used vehicle retail sales

 

$

1,422

   

$

1,362

   

4.4

 

Used vehicle wholesale sales

 

$

135

   

$

213

   

(36.6)

 

Total used

 

$

1,186

   

$

1,128

   

5.1

 

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

 

$

1,818

   

$

1,655

   

9.8

 

OTHER

           

SG&A expenses

 

$

268,077

   

$

234,279

   

14.4

 

Adjusted SG&A expenses (1)

 

$

264,085

   

$

246,586

   

7.1

 

SG&A as % revenues

 

11.8

   

10.8

     

Adjusted SG&A as % revenues (1)

 

11.6

   

11.4

     

SG&A as % gross profit

 

71.2

   

66.8

     

Adjusted SG&A as % gross profit (1)

 

70.1

   

70.3

     

Operating margin %

 

4.1

   

4.6

     

Adjusted operating margin % (1)

 

4.3

   

4.2

     

Pretax margin %

 

2.8

   

3.2

     

Adjusted pretax margin % (1)

 

3.0

   

2.8

     

INTEREST EXPENSE

           

Floorplan interest expense

 

$

(14,001)

   

$

(12,809)

   

9.3

 

Floorplan assistance

 

11,712

   

11,206

   

4.5

 

Net floorplan expense

 

$

(2,289)

   

$

(1,603)

   

42.8

 

Other interest expense, net

 

$

(16,611)

   

$

(17,332)

   

(4.2)

 

 

 

(1) See the section of this release titled "Non-GAAP Financial Measures and Same Store Data."


 

Group 1 Automotive, Inc.

Additional Information - U.S.

(Unaudited)

(Dollars in thousands, except per unit amounts)

             
   

Six Months Ended June 30,

   

2019

 

2018

 

%
Increase/(Decrease)

REVENUES

           

New vehicle retail sales

 

$

2,220,534

   

$

2,236,835

   

(0.7)

 

Used vehicle retail sales

 

1,219,870

   

1,155,837

   

5.5

 

Used vehicle wholesale sales

 

87,112

   

96,783

   

(10.0)

 

Total used

 

1,306,982

   

1,252,620

   

4.3

 

Parts and service sales

 

607,247

   

573,403

   

5.9

 

Finance, insurance and other, net

 

206,699

   

193,629

   

6.8

 

Total revenues

 

$

4,341,462

   

$

4,256,487

   

2.0

 

GROSS MARGIN %

           

New vehicle retail sales

 

4.8

   

4.9

     

Used vehicle retail sales

 

6.7

   

6.3

     

Used vehicle wholesale sales

 

2.4

   

3.1

     

Total used

 

6.4

   

6.0

     

Parts and service sales

 

54.0

   

53.7

     

Finance, insurance and other, net

 

100.0

   

100.0

     

Total gross margin

 

16.7

   

16.1

     

GROSS PROFIT

           

New vehicle retail sales

 

$

105,556

   

$

109,493

   

(3.6)

 

Used vehicle retail sales

 

81,614

   

72,294

   

12.9

 

Used vehicle wholesale sales

 

2,085

   

2,987

   

(30.2)

 

Total used

 

83,699

   

75,281

   

11.2

 

Parts and service sales

 

327,673

   

307,952

   

6.4

 

Finance, insurance and other, net

 

206,699

   

193,629

   

6.8

 

Total gross profit

 

$

723,627

   

$

686,355

   

5.4

 

UNITS SOLD

           

Retail new vehicles sold

 

56,708

   

59,061

   

(4.0)

 

Retail used vehicles sold

 

59,794

   

55,794

   

7.2

 

Wholesale used vehicles sold

 

13,978

   

16,675

   

(16.2)

 

Total used

 

73,772

   

72,469

   

1.8

 

AVERAGE RETAIL SALES PRICE

           

New vehicle retail

 

$

39,157

   

$

37,873

   

3.4

 

Used vehicle retail

 

$

20,401

   

$

20,716

   

(1.5)

 

GROSS PROFIT PER UNIT SOLD

           

New vehicle retail sales

 

$

1,861

   

$

1,854

   

0.4

 

Used vehicle retail sales

 

$

1,365

   

$

1,296

   

5.3

 

Used vehicle wholesale sales

 

$

149

   

$

179

   

(16.8)

 

Total used

 

$

1,135

   

$

1,039

   

9.2

 

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

 

$

1,774

   

$

1,686

   

5.2

 

OTHER

           

SG&A expenses

 

$

524,230

   

$

487,220

   

7.6

 

Adjusted SG&A expenses (1)

 

$

521,652

   

$

499,527

   

4.4

 

SG&A as % revenues

 

12.1

   

11.4

     

Adjusted SG&A as % revenues (1)

 

12.0

   

11.7

     

SG&A as % gross profit

 

72.4

   

71.0

     

Adjusted SG&A as % gross profit (1)

 

72.1

   

72.8

     

Operating margin %

 

4.0

   

4.0

     

Adjusted operating margin % (1)

 

4.0

   

3.8

     

Pretax margin %

 

2.5

   

2.6

     

Adjusted pretax margin % (1)

 

2.6

   

2.4

     

INTEREST EXPENSE

           

Floorplan interest expense

 

$

(27,989)

   

$

(25,146)

   

11.3

 

Floorplan assistance

 

22,038

   

21,956

   

0.4

 

Net floorplan expense

 

$

(5,951)

   

$

(3,190)

   

86.6

 

Other interest expense, net

 

$

(33,786)

   

$

(34,348)

   

(1.6)

 
 

(1) See the section of this release titled "Non-GAAP Financial Measures and Same Store Data."  

 

Group 1 Automotive, Inc.

Additional Information - U.K.

(Unaudited)

(Dollars in thousands, except per unit amounts)

   
 

Three Months Ended June 30,

 

2019

 

2018

 

%
Increase/(Decrease)

 

Constant Currency (1)
% Increase/(Decrease)

REVENUES

             

New vehicle retail sales

$

302,224

   

$

338,635

   

(10.8)

   

(5.5)

 

Used vehicle retail sales

194,007

   

208,108

   

(6.8)

   

(1.4)

 

Used vehicle wholesale sales

46,882

   

46,527

   

0.8

   

6.6

 

Total used

240,889

   

254,635

   

(5.4)

   

0.1

 

Parts and service sales

56,360

   

57,996

   

(2.8)

   

2.8

 

Finance, insurance and other, net

14,961

   

15,617

   

(4.2)

   

1.3

 

Total revenues

$

614,434

   

$

666,883

   

(7.9)

   

(2.5)

 

GROSS MARGIN %

             

New vehicle retail sales

3.5

   

4.7

         

Used vehicle retail sales

4.3

   

5.3

         

Used vehicle wholesale sales

(2.7)

   

(3.0)

         

Total used

2.9

   

3.8

         

Parts and service sales

55.9

   

57.9

         

Finance, insurance and other, net

100.0

   

100.0

         

Total gross margin

10.4

   

11.2

         

GROSS PROFIT

             

New vehicle retail sales

$

10,625

   

$

15,907

   

(33.2)

   

(29.6)

 

Used vehicle retail sales

8,289

   

11,103

   

(25.3)

   

(20.7)

 

Used vehicle wholesale sales

(1,287)

   

(1,378)

   

6.6

   

1.6

 

Total used

7,002

   

9,725

   

(28.0)

   

(23.4)

 

Parts and service sales

31,483

   

33,555

   

(6.2)

   

(0.9)

 

Finance, insurance and other, net

14,961

   

15,617

   

(4.2)

   

1.3

 

Total gross profit

$

64,071

   

$

74,804

   

(14.3)

   

(9.5)

 

UNITS SOLD

             

Retail new vehicles sold

9,266

   

10,914

   

(15.1)

     

Retail used vehicles sold

8,280

   

8,501

   

(2.6)

     

Wholesale used vehicles sold

5,772

   

5,955

   

(3.1)

     

Total used

14,052

   

14,456

   

(2.8)

     

AVERAGE RETAIL SALES PRICE

             

New vehicle retail

$

32,616

   

$

31,028

   

5.1

   

11.3

 

Used vehicle retail

$

23,431

   

$

24,480

   

(4.3)

   

1.2

 

GROSS PROFIT PER UNIT SOLD

             

New vehicle retail sales

$

1,147

   

$

1,457

   

(21.3)

   

(17.1)

 

Used vehicle retail sales

$

1,001

   

$

1,306

   

(23.4)

   

(18.6)

 

Used vehicle wholesale sales

$

(223)

   

$

(231)

   

3.5

   

(1.5)

 

Total used

$

498

   

$

673

   

(26.0)

   

(21.2)

 

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

$

853

   

$

804

   

6.1

   

12.1

 

OTHER

             

SG&A expenses

$

59,036

   

$

62,258

   

(5.2)

   

0.4

 

SG&A as % revenues

9.6

   

9.3

         

SG&A as % gross profit

92.1

   

83.2

         

Operating margin %

0.3

   

1.4

         

Pretax margin %

(0.3)

   

0.9

         

INTEREST EXPENSE

             

Floorplan interest expense

$

(1,738)

   

$

(1,617)

   

7.5

   

13.9

 

Floorplan assistance

100

   

240

   

(58.3)

   

(55.9)

 

Net floorplan expense

$

(1,638)

   

$

(1,377)

   

19.0

   

26.1

 

Other interest expense, net

$

(1,566)

   

$

(1,790)

   

(12.5)

   

(7.4)

 
 

(1) See the section of this release titled "Non-GAAP Financial Measures and Same Store Data."

 

 

Group 1 Automotive, Inc.

Additional Information - U.K.

(Unaudited)

(Dollars in thousands, except per unit amounts)

               
 

Six Months Ended June 30,

 

2019

 

2018

 

%
Increase/(Decrease)

 

Constant Currency (1)
% Increase/(Decrease)

REVENUES

             

New vehicle retail sales

$

620,795

   

$

693,039

   

(10.4)

   

(4.9)

 

Used vehicle retail sales

397,568

   

400,657

   

(0.8)

   

5.4

 

Used vehicle wholesale sales

92,143

   

92,712

   

(0.6)

   

5.7

 

Total used

489,711

   

493,369

   

(0.7)

   

5.5

 

Parts and service sales

115,926

   

111,137

   

4.3

   

10.8

 

Finance, insurance and other, net

30,160

   

29,880

   

0.9

   

7.1

 

Total revenues

$

1,256,592

   

$

1,327,425

   

(5.3)

   

0.6

 

GROSS MARGIN %

             

New vehicle retail sales

4.4

   

5.0

         

Used vehicle retail sales

4.2

   

4.9

         

Used vehicle wholesale sales

(2.5)

   

(1.4)

         

Total used

2.9

   

3.7

         

Parts and service sales

55.4

   

57.2

         

Finance, insurance and other, net

100.0

   

100.0

         

Total gross margin

10.8

   

11.0

         

GROSS PROFIT

             

New vehicle retail sales

$

27,397

   

$

34,418

   

(20.4)

   

(15.9)

 

Used vehicle retail sales

16,577

   

19,663

   

(15.7)

   

(10.3)

 

Used vehicle wholesale sales

(2,297)

   

(1,308)

   

(75.6)

   

(84.0)

 

Total used

14,280

   

18,355

   

(22.2)

   

(17.0)

 

Parts and service sales

64,229

   

63,602

   

1.0

   

7.2

 

Finance, insurance and other, net

30,160

   

29,880

   

0.9

   

7.1

 

Total gross profit

$

136,066

   

$

146,255

   

(7.0)

   

(1.3)

 

UNITS SOLD

             

Retail new vehicles sold

19,610

   

21,364

   

(8.2)

     

Retail used vehicles sold

16,711

   

16,336

   

2.3

     

Wholesale used vehicles sold

11,139

   

11,542

   

(3.5)

     

Total used

27,850

   

27,878

   

(0.1)

     

AVERAGE RETAIL SALES PRICE

             

New vehicle retail

$

31,657

   

$

32,440

   

(2.4)

   

3.7

 

Used vehicle retail

$

23,791

   

$

24,526

   

(3.0)

   

3.0

 

GROSS PROFIT PER UNIT SOLD

             

New vehicle retail sales

$

1,397

   

$

1,611

   

(13.3)

   

(8.3)

 

Used vehicle retail sales

$

992

   

$

1,204

   

(17.6)

   

(12.3)

 

Used vehicle wholesale sales

$

(206)

   

$

(113)

   

(82.3)

   

(90.7)

 

Total used

$

513

   

$

658

   

(22.0)

   

(16.9)

 

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

$

830

   

$

793

   

4.7

   

11.1

 

OTHER

             

SG&A expenses

$

118,228

   

$

121,854

   

(3.0)

   

3.1

 

SG&A as % revenues

9.4

   

9.2

         

SG&A as % gross profit

86.9

   

83.3

         

Operating margin %

0.9

   

1.4

         

Pretax margin %

0.4

   

0.9

         

INTEREST EXPENSE

             

Floorplan interest expense

$

(3,352)

   

$

(3,131)

   

7.1

   

13.9

 

Floorplan assistance

256

   

526

   

(51.3)

   

(48.1)

 

Net floorplan expense

$

(3,096)

   

$

(2,605)

   

18.8

   

26.4

 

Other interest expense, net

$

(3,150)

   

$

(3,322)

   

(5.2)

   

0.7

 

 

 

(1) See the section of this release titled "Non-GAAP Financial Measures and Same Store Data."

 

Group 1 Automotive, Inc.

Additional Information - Brazil

(Unaudited)

(Dollars in thousands, except per unit amounts)

               
 

Three Months Ended June 30,

 

2019

 

2018

 

%
Increase/(Decrease)

 

Constant Currency (1)
% Increase/(Decrease)

REVENUES

             

New vehicle retail sales

$

74,359

   

$

70,053

   

6.1

   

16.2

 

Used vehicle retail sales

19,437

   

21,738

   

(10.6)

   

(2.4)

 

Used vehicle wholesale sales

4,829

   

3,546

   

36.2

   

47.0

 

Total used

24,266

   

25,284

   

(4.0)

   

4.6

 

Parts and service sales

12,162

   

11,244

   

8.2

   

18.1

 

Finance, insurance and other, net

1,788

   

1,997

   

(10.5)

   

(2.2)

 

Total revenues

$

112,575

   

$

108,578

   

3.7

   

13.4

 

GROSS MARGIN %

             

New vehicle retail sales

5.8

   

6.2

         

Used vehicle retail sales

8.6

   

6.0

         

Used vehicle wholesale sales

5.7

   

1.9

         

Total used

8.0

   

5.4

         

Parts and service sales

44.5

   

44.5

         

Finance, insurance and other, net

100.0

   

100.0

         

Total gross margin

12.0

   

11.7

         

GROSS PROFIT

             

New vehicle retail sales

$

4,327

   

$

4,317

   

0.2

   

9.7

 

Used vehicle retail sales

1,673

   

1,302

   

28.5

   

40.1

 

Used vehicle wholesale sales

273

   

66

   

313.6

   

393.3

 

Total used

1,946

   

1,368

   

42.3

   

57.2

 

Parts and service sales

5,411

   

5,007

   

8.1

   

18.1

 

Finance, insurance and other, net

1,788

   

1,997

   

(10.5)

   

(2.2)

 

Total gross profit

$

13,472

   

$

12,689

   

6.2

   

16.1

 

UNITS SOLD

             

Retail new vehicles sold

2,509

   

2,169

   

15.7

     

Retail used vehicles sold

988

   

1,023

   

(3.4)

     

Wholesale used vehicles sold

484

   

322

   

50.3

     

Total used

1,472

   

1,345

   

9.4

     

AVERAGE RETAIL SALES PRICE

             

New vehicle retail

$

29,637

   

$

32,297

   

(8.2)

   

0.5

 

Used vehicle retail

$

19,673

   

$

21,249

   

(7.4)

   

1.1

 

GROSS PROFIT PER UNIT SOLD

             

New vehicle retail sales

$

1,725

   

$

1,990

   

(13.3)

   

(5.2)

 

Used vehicle retail sales

$

1,693

   

$

1,273

   

33.0

   

45.1

 

Used vehicle wholesale sales

$

564

   

$

205

   

175.1

   

228.2

 

Total used

$

1,322

   

$

1,017

   

30.0

   

43.7

 

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

$

511

   

$

626

   

(18.4)

   

(10.8)

 

OTHER

             

SG&A expenses

$

11,602

   

$

11,555

   

0.4

   

9.7

 

Adjusted SG&A expenses (1)

$

12,162

   

$

11,005

   

10.5

   

20.9

 

SG&A as % revenues

10.3

   

10.6

         

Adjusted SG&A as % revenues (1)

10.8

   

10.1

         

SG&A as % gross profit

86.1

   

91.1

         

Adjusted SG&A as % gross profit (1)

90.3

   

86.7

         

Operating margin %

0.8

   

0.6

         

Adjusted operating margin % (1)

0.8

   

1.1

         

Pretax margin %

0.8

   

0.2

         

Adjusted pretax margin % (1)

0.8

   

0.7

         

INTEREST EXPENSE

             

Floorplan interest expense

$

(204)

   

$

(137)

   

48.9

   

63.3

 

Other interest income (expense), net

$

216

   

$

(292)

   

(174.0)

   

(181.2)

 
 

(1) See the section of this release titled "Non-GAAP Financial Measures and Same Store Data."

 

 

Group 1 Automotive, Inc.

Additional Information - Brazil

(Unaudited)

(Dollars in thousands, except per unit amounts)

   
 

Six Months Ended June 30,

 

2019

 

2018

 

%
Increase/(Decrease)

 

Constant Currency (1)
% Increase/(Decrease)

REVENUES

             

New vehicle retail sales

$

138,531

   

$

139,286

   

(0.5)

   

12.1

 

Used vehicle retail sales

40,661

   

45,929

   

(11.5)

   

(0.3)

 

Used vehicle wholesale sales

8,879

   

7,388

   

20.2

   

35.2

 

Total used

49,540

   

53,317

   

(7.1)

   

4.6

 

Parts and service sales

24,168

   

23,104

   

4.6

   

17.8

 

Finance, insurance and other, net

3,772

   

3,869

   

(2.5)

   

9.2

 

Total revenues

$

216,011

   

$

219,576

   

(1.6)

   

10.8

 

GROSS MARGIN %

             

New vehicle retail sales

5.9

   

5.8

         

Used vehicle retail sales

7.2

   

6.0

         

Used vehicle wholesale sales

6.4

   

2.9

         

Total used

7.0

   

5.6

         

Parts and service sales

44.1

   

44.9

         

Finance, insurance and other, net

100.0

   

100.0

         

Total gross margin

12.1

   

11.5

         

GROSS PROFIT

             

New vehicle retail sales

$

8,142

   

$

8,098

   

0.5

   

12.9

 

Used vehicle retail sales

2,910

   

2,752

   

5.7

   

19.5

 

Used vehicle wholesale sales

570

   

217

   

162.7

   

209.1

 

Total used

3,480

   

2,969

   

17.2

   

33.4

 

Parts and service sales

10,669

   

10,380

   

2.8

   

15.8

 

Finance, insurance and other, net

3,772

   

3,869

   

(2.5)

   

9.2

 

Total gross profit

$

26,063

   

$

25,316

   

3.0

   

15.9

 

UNITS SOLD

             

Retail new vehicles sold

4,649

   

4,236

   

9.7

     

Retail used vehicles sold

2,076

   

2,094

   

(0.9)

     

Wholesale used vehicles sold

956

   

679

   

40.8

     

Total used

3,032

   

2,773

   

9.3

     

AVERAGE RETAIL SALES PRICE

             

New vehicle retail

$

29,798

   

$

32,881

   

(9.4)

   

2.2

 

Used vehicle retail

$

19,586

   

$

21,934

   

(10.7)

   

0.5

 

GROSS PROFIT PER UNIT SOLD

             

New vehicle retail sales

$

1,751

   

$

1,912

   

(8.4)

   

2.9

 

Used vehicle retail sales

$

1,402

   

$

1,314

   

6.7

   

20.6

 

Used vehicle wholesale sales

$

596

   

$

320

   

86.3

   

119.6

 

Total used

$

1,148

   

$

1,071

   

7.2

   

22.0

 

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

$

561

   

$

611

   

(8.2)

   

2.8

 

OTHER

             

SG&A expenses

$

23,965

   

$

23,365

   

2.6

   

15.4

 

Adjusted SG&A expenses (1)

$

23,953

   

$

22,815

   

5.0

   

18.4

 

SG&A as % revenues

11.1

   

10.6

         

Adjusted SG&A as % revenues (1)

11.1

   

10.4

         

SG&A as % gross profit

91.9

   

92.3

         

Adjusted SG&A as % gross profit (1)

91.9

   

90.1

         

Operating margin %

0.3

   

0.5

         

Adjusted operating margin % (1)

0.6

   

0.7

         

Pretax margin %

0.2

   

0.1

         

Adjusted pretax margin % (1)

0.5

   

0.3

         

INTEREST EXPENSE

             

Floorplan interest expense

$

(305)

   

$

(373)

   

(18.2)

   

(5.6)

 

Other interest income (expense), net

$

56

   

$

(564)

   

(109.9)

   

(112.5)

 

 

 

(1) See the section of this release titled "Non-GAAP Financial Measures and Same Store Data."

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

(Dollars in thousands, except per unit amounts)

   
 

Three Months Ended June 30,

 

2019

 

2018

 

%
Increase/(Decrease)

 

Constant Currency (1)
% Increase/(Decrease)

REVENUES

             

New vehicle retail sales

$

1,565,375

   

$

1,555,570

   

0.6

   

2.2

 

Used vehicle retail sales

838,896

   

821,853

   

2.1

   

3.7

 

Used vehicle wholesale sales

95,996

   

92,854

   

3.4

   

6.7

 

Total used

934,892

   

914,707

   

2.2

   

4.0

 

Parts and service sales

378,167

   

358,129

   

5.6

   

6.8

 

Finance, insurance and other, net

127,255

   

115,056

   

10.6

   

11.5

 

Total revenues

$

3,005,689

   

$

2,943,462

   

2.1

   

3.7

 

GROSS MARGIN %

             

New vehicle retail sales

4.5

   

4.9

         

Used vehicle retail sales

6.4

   

6.2

         

Used vehicle wholesale sales

(0.1)

   

0.3

         

Total used

5.7

   

5.6

         

Parts and service sales

54.0

   

54.5

         

Finance, insurance and other, net

100.0

   

100.0

         

Total gross margin

15.1

   

14.9

         

GROSS PROFIT

             

New vehicle retail sales

$

69,704

   

$

76,582

   

(9.0)

   

(7.7)

 

Used vehicle retail sales

53,292

   

51,214

   

4.1

   

5.4

 

Used vehicle wholesale sales

(93)

   

241

   

(138.6)

   

(145.0)

 

Total used

53,199

   

51,455

   

3.4

   

4.7

 

Parts and service sales

204,095

   

195,070

   

4.6

   

5.8

 

Finance, insurance and other, net

127,255

   

115,056

   

10.6

   

11.5

 

Total gross profit

$

454,253

   

$

438,163

   

3.7

   

4.8

 

UNITS SOLD

             

Retail new vehicles sold

42,093

   

43,471

   

(3.2)

     

Retail used vehicles sold

39,745

   

38,008

   

4.6

     

Wholesale used vehicles sold

13,084

   

13,569

   

(3.6)

     

Total used

52,829

   

51,577

   

2.4

     

AVERAGE RETAIL SALES PRICE

             

New vehicle retail

$

37,188

   

$

35,784

   

3.9

   

5.6

 

Used vehicle retail

$

21,107

   

$

21,623

   

(2.4)

   

(0.9)

 

GROSS PROFIT PER UNIT SOLD

             

New vehicle retail sales

$

1,656

   

$

1,762

   

(6.0)

   

(4.7)

 

Used vehicle retail sales

$

1,341

   

$

1,347

   

(0.4)

   

0.8

 

Used vehicle wholesale sales

$

(7)

   

$

18

   

(138.9)

   

(146.7)

 

Total used

$

1,007

   

$

998

   

0.9

   

2.2

 

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

$

1,555

   

$

1,412

   

10.1

   

11.0

 

OTHER

             

SG&A expenses

$

338,715

   

$

308,092

   

9.9

   

11.4

 

Adjusted SG&A expenses (1)

$

335,283

   

$

319,849

   

4.8

   

6.3

 

SG&A as % revenues

11.3

   

10.5

         

Adjusted SG&A as % revenues (1)

11.2

   

10.9

         

SG&A as % gross profit

74.6

   

70.3

         

Adjusted SG&A as % gross profit (1)

73.8

   

73.0

         

Operating margin %

3.2

   

3.7

         

Adjusted operating margin % (1)

3.4

   

3.5

         

Pretax margin %

2.1

   

2.6

         

Adjusted pretax margin % (1)

2.2

   

2.3

         

INTEREST EXPENSE

             

Floorplan interest expense

$

(15,943)

   

$

(14,563)

   

9.5

   

10.3

 

Floorplan assistance

11,812

   

11,447

   

3.2

   

3.2

 

Net floorplan expense

$

(4,131)

   

$

(3,116)

   

32.6

   

36.3

 

Other interest expense, net

$

(17,961)

   

$

(19,414)

   

(7.5)

   

(7.1)

 
 

(1) See the section of this release titled "Non-GAAP Financial Measures and Same Store Data."

 

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

(Dollars in thousands, except per unit amounts)

   
 

Six Months Ended June 30,

 

2019

 

2018

 

%
Increase/(Decrease)

 

Constant Currency (1)
% Increase/(Decrease)

REVENUES

             

New vehicle retail sales

$

2,979,860

   

$

3,069,160

   

(2.9)

   

(1.1)

 

Used vehicle retail sales

1,658,099

   

1,602,423

   

3.5

   

5.3

 

Used vehicle wholesale sales

188,134

   

196,883

   

(4.4)

   

(0.9)

 

Total used

1,846,233

   

1,799,306

   

2.6

   

4.7

 

Parts and service sales

747,341

   

707,644

   

5.6

   

7.1

 

Finance, insurance and other, net

240,631

   

227,378

   

5.8

   

6.8

 

Total revenues

$

5,814,065

   

$

5,803,488

   

0.2

   

2.0

 

GROSS MARGIN %

             

New vehicle retail sales

4.7

   

5.0

         

Used vehicle retail sales

6.1

   

5.9

         

Used vehicle wholesale sales

0.2

   

1.0

         

Total used

5.5

   

5.4

         

Parts and service sales

53.9

   

54.0

         

Finance, insurance and other, net

100.0

   

100.0

         

Total gross margin

15.2

   

14.8

         

GROSS PROFIT

             

New vehicle retail sales

$

141,095

   

$

152,009

   

(7.2)

   

(5.5)

 

Used vehicle retail sales

101,101

   

94,709

   

6.7

   

8.3

 

Used vehicle wholesale sales

358

   

1,896

   

(81.1)

   

(81.5)

 

Total used

101,459

   

96,605

   

5.0

   

6.5

 

Parts and service sales

402,571

   

381,934

   

5.4

   

6.8

 

Finance, insurance and other, net

240,631

   

227,378

   

5.8

   

6.8

 

Total gross profit

$

885,756

   

$

857,926

   

3.2

   

4.6

 

UNITS SOLD

             

Retail new vehicles sold

80,967

   

84,661

   

(4.4)

     

Retail used vehicles sold

78,581

   

74,224

   

5.9

     

Wholesale used vehicles sold

26,073

   

28,896

   

(9.8)

     

Total used

104,654

   

103,120

   

1.5

     

AVERAGE RETAIL SALES PRICE

             

New vehicle retail

$

36,803

   

$

36,252

   

1.5

   

3.4

 

Used vehicle retail

$

21,101

   

$

21,589

   

(2.3)

   

(0.5)

 

GROSS PROFIT PER UNIT SOLD

             

New vehicle retail sales

$

1,743

   

$

1,796

   

(3.0)

   

(1.2)

 

Used vehicle retail sales

$

1,287

   

$

1,276

   

0.9

   

2.3

 

Used vehicle wholesale sales

$

14

   

$

66

   

(78.8)

   

(79.5)

 

Total used

$

969

   

$

937

   

3.4

   

4.9

 

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

$

1,508

   

$

1,431

   

5.4

   

6.4

 

OTHER

             

SG&A expenses

$

666,423

   

$

632,439

   

5.4

   

7.0

 

Adjusted SG&A expenses (1)

$

663,833

   

$

644,196

   

3.0

   

4.7

 

SG&A as % revenues

11.5

   

10.9

         

Adjusted SG&A as % revenues (1)

11.4

   

11.1

         

SG&A as % gross profit

75.2

   

73.7

         

Adjusted SG&A as % gross profit (1)

74.9

   

75.1

         

Operating margin %

3.2

   

3.2

         

Adjusted operating margin % (1)

3.2

   

3.1

         

Pretax margin %

2.0

   

2.1

         

Adjusted pretax margin % (1)

2.0

   

2.0

         

INTEREST EXPENSE

             

Floorplan interest expense

$

(31,646)

   

$

(28,650)

   

10.5

   

11.4

 

Floorplan assistance

22,294

   

22,482

   

(0.8)

   

(0.8)

 

Net floorplan expense

$

(9,352)

   

$

(6,168)

   

51.6

   

55.6

 

Other interest expense, net

$

(36,880)

   

$

(38,234)

   

(3.5)

   

(3.1)

 

 

 

(1) See the section of this release titled "Non-GAAP Financial Measures and Same Store Data."

 

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)

           
 

Three Months Ended June 30,

 

2019

 

2018

 

%
Increase/(Decrease)

REVENUES

         

New vehicle retail sales

$

1,165,371

   

$

1,114,450

   

4.6

 

Used vehicle retail sales

611,756

   

577,855

   

5.9

 

Used vehicle wholesale sales

43,391

   

41,368

   

4.9

 

Total used

655,147

   

619,223

   

5.8

 

Parts and service sales

307,085

   

278,881

   

10.1

 

Finance, insurance and other, net

108,102

   

95,304

   

13.4

 

Total revenues

$

2,235,705

   

$

2,107,858

   

6.1

 

GROSS MARGIN %

         

New vehicle retail sales

4.6

   

4.9

     

Used vehicle retail sales

7.0

   

6.6

     

Used vehicle wholesale sales

2.2

   

3.9

     

Total used

6.6

   

6.4

     

Parts and service sales

53.8

   

54.5

     

Finance, insurance and other, net

100.0

   

100.0

     

Total gross margin

16.6

   

16.2

     

GROSS PROFIT

         

New vehicle retail sales

$

53,566

   

$

54,730

   

(2.1)

 

Used vehicle retail sales

42,602

   

37,937

   

12.3

 

Used vehicle wholesale sales

952

   

1,613

   

(41.0)

 

Total used

43,554

   

39,550

   

10.1

 

Parts and service sales

165,177

   

151,895

   

8.7

 

Finance, insurance and other, net

108,102

   

95,304

   

13.4

 

Total gross profit

$

370,399

   

$

341,479

   

8.5

 

UNITS SOLD

         

Retail new vehicles sold

29,588

   

29,595

   

 

Retail used vehicles sold

29,773

   

27,815

   

7.0

 

Wholesale used vehicles sold

6,618

   

7,058

   

(6.2)

 

Total used

36,391

   

34,873

   

4.4

 

AVERAGE RETAIL SALES PRICE

         

New vehicle retail

$

39,387

   

$

37,657

   

4.6

 

Used vehicle retail

$

20,547

   

$

20,775

   

(1.1)

 

GROSS PROFIT PER UNIT SOLD

         

New vehicle retail sales

$

1,810

   

$

1,849

   

(2.1)

 

Used vehicle retail sales

$

1,431

   

$

1,364

   

4.9

 

Used vehicle wholesale sales

$

144

   

$

229

   

(37.1)

 

Total used

$

1,197

   

$

1,134

   

5.6

 

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

$

1,821

   

$

1,660

   

9.7

 

OTHER

         

SG&A expenses

$

263,184

   

$

244,896

   

7.5

 

Adjusted SG&A expenses (1)

$

259,192

   

$

240,302

   

7.9

 

SG&A as % revenues

11.8

   

11.6

     

Adjusted SG&A as % revenues (1)

11.6

   

11.4

     

SG&A as % gross profit

71.1

   

71.7

     

Adjusted SG&A as % gross profit (1)

70.0

   

70.4

     

Operating margin %

4.2

   

3.9

     

Adjusted operating margin % (1)

4.4

   

4.2

     

 

 

(1) See the section of this release titled "Non-GAAP Financial Measures and Same Store Data."

 

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)

           
 

Six Months Ended June 30,

 

2019

 

2018

 

%
Increase/(Decrease)

REVENUES

         

New vehicle retail sales

$

2,170,350

   

$

2,175,744

   

(0.2)

 

Used vehicle retail sales

1,189,401

   

1,127,097

   

5.5

 

Used vehicle wholesale sales

85,265

   

93,907

   

(9.2)

 

Total used

1,274,666

   

1,221,004

   

4.4

 

Parts and service sales

601,064

   

554,170

   

8.5

 

Finance, insurance and other, net

201,812

   

189,410

   

6.5

 

Total revenues

$

4,247,892

   

$

4,140,328

   

2.6

 

GROSS MARGIN %

         

New vehicle retail sales

4.7

   

4.9

     

Used vehicle retail sales

6.7

   

6.3

     

Used vehicle wholesale sales

2.5

   

3.2

     

Total used

6.4

   

6.0

     

Parts and service sales

53.8

   

53.9

     

Finance, insurance and other, net

100.0

   

100.0

     

Total gross margin

16.7

   

16.1

     

GROSS PROFIT

         

New vehicle retail sales

$

102,973

   

$

106,199

   

(3.0)

 

Used vehicle retail sales

79,937

   

70,528

   

13.3

 

Used vehicle wholesale sales

2,151

   

3,041

   

(29.3)

 

Total used

82,088

   

73,569

   

11.6

 

Parts and service sales

323,200

   

298,872

   

8.1

 

Finance, insurance and other, net

201,812

   

189,410

   

6.5

 

Total gross profit

$

710,073

   

$

668,050

   

6.3

 

UNITS SOLD

         

Retail new vehicles sold

55,157

   

57,602

   

(4.2)

 

Retail used vehicles sold

58,162

   

54,450

   

6.8

 

Wholesale used vehicles sold

13,539

   

16,229

   

(16.6)

 

Total used

71,701

   

70,679

   

1.4

 

AVERAGE RETAIL SALES PRICE

         

New vehicle retail

$

39,349

   

$

37,772

   

4.2

 

Used vehicle retail

$

20,450

   

$

20,700

   

(1.2)

 

GROSS PROFIT PER UNIT SOLD

         

New vehicle retail sales

$

1,867

   

$

1,844

   

1.2

 

Used vehicle retail sales

$

1,374

   

$

1,295

   

6.1

 

Used vehicle wholesale sales

$

159

   

$

187

   

(15.0)

 

Total used

$

1,145

   

$

1,041

   

10.0

 

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

$

1,781

   

$

1,690

   

5.4

 

OTHER

         

SG&A expenses

$

516,471

   

$

489,849

   

5.4

 

Adjusted SG&A expenses (1)

$

509,754

   

$

485,256

   

5.0

 

SG&A as % revenues

12.2

   

11.8

     

Adjusted SG&A as % revenues (1)

12.0

   

11.7

     

SG&A as % gross profit

72.7

   

73.3

     

Adjusted SG&A as % gross profit (1)

71.8

   

72.6

     

Operating margin %

3.9

   

3.6

     

Adjusted operating margin % (1)

4.0

   

3.8

     

 

 

(1) See the section of this release titled "Non-GAAP Financial Measures and Same Store Data."

 

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)

               
 

Three Months Ended June 30,

 

2019

 

2018

 

%
Increase/(Decrease)

 

Constant Currency (1)
% Increase/(Decrease)

REVENUES

             

New vehicle retail sales

$

298,728

   

$

332,439

   

(10.1)

   

(4.8)

 

Used vehicle retail sales

190,782

   

204,358

   

(6.6)

   

(1.3)

 

Used vehicle wholesale sales

45,990

   

45,797

   

0.4

   

6.3

 

Total used

236,772

   

250,155

   

(5.3)

   

0.1

 

Parts and service sales

53,528

   

54,970

   

(2.6)

   

3.0

 

Finance, insurance and other, net

14,649

   

15,373

   

(4.7)

   

0.7

 

Total revenues

$

603,677

   

$

652,937

   

(7.5)

   

(2.1)

 

GROSS MARGIN %

             

New vehicle retail sales

3.5

   

4.7

         

Used vehicle retail sales

4.2

   

5.3

         

Used vehicle wholesale sales

(2.7)

   

(2.5)

         

Total used

2.9

   

3.9

         

Parts and service sales

55.8

   

58.2

         

Finance, insurance and other, net

100.0

   

100.0

         

Total gross margin

10.2

   

11.2

         

GROSS PROFIT

             

New vehicle retail sales

$

10,465

   

$

15,785

   

(33.7)

   

(30.2)

 

Used vehicle retail sales

8,088

   

10,823

   

(25.3)

   

(20.6)

 

Used vehicle wholesale sales

(1,225)

   

(1,127)

   

(8.7)

   

(14.6)

 

Total used

6,863

   

9,696

   

(29.2)

   

(24.7)

 

Parts and service sales

29,880

   

32,019

   

(6.7)

   

(1.4)

 

Finance, insurance and other, net

14,649

   

15,373

   

(4.7)

   

0.7

 

Total gross profit

$

61,857

   

$

72,873

   

(15.1)

   

(10.3)

 

UNITS SOLD

             

Retail new vehicles sold

9,109

   

10,290

   

(11.5)

     

Retail used vehicles sold

8,052

   

8,285

   

(2.8)

     

Wholesale used vehicles sold

5,604

   

5,818

   

(3.7)

     

Total used

13,656

   

14,103

   

(3.2)

     

AVERAGE RETAIL SALES PRICE

             

New vehicle retail

$

32,795

   

$

32,307

   

1.5

   

7.5

 

Used vehicle retail

$

23,694

   

$

24,666

   

(3.9)

   

1.6

 

GROSS PROFIT PER UNIT SOLD

             

New vehicle retail sales

$

1,149

   

$

1,534

   

(25.1)

   

(21.1)

 

Used vehicle retail sales

$

1,004

   

$

1,306

   

(23.1)

   

(18.3)

 

Used vehicle wholesale sales

$

(219)

   

$

(194)

   

(12.9)

   

(18.9)

 

Total used

$

503

   

$

688

   

(26.9)

   

(22.3)

 

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

$

854

   

$

828

   

3.1

   

9.0

 

OTHER

             

SG&A expenses

$

56,998

   

$

59,703

   

(4.5)

   

1.0

 

SG&A as % revenues

9.4

   

9.1

         

SG&A as % gross profit

92.1

   

81.9

         

Operating margin %

0.3

   

1.5

         

 

 

(1) See the section of this release titled "Non-GAAP Financial Measures and Same Store Data."

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)

   
 

Six Months Ended June 30,

 

2019

 

2018

 

%
Increase/(Decrease)

 

Constant Currency (1)
% Increase/(Decrease)

REVENUES

             

New vehicle retail sales

$

578,891

   

$

657,700

   

(12.0)

   

(6.5)

 

Used vehicle retail sales

368,637

   

387,276

   

(4.8)

   

1.1

 

Used vehicle wholesale sales

87,211

   

90,365

   

(3.5)

   

2.6

 

Total used

455,848

   

477,641

   

(4.6)

   

1.4

 

Parts and service sales

104,274

   

103,193

   

1.0

   

7.3

 

Finance, insurance and other, net

28,307

   

28,841

   

(1.9)

   

4.1

 

Total revenues

$

1,167,320

   

$

1,267,375

   

(7.9)

   

(2.1)

 

GROSS MARGIN %

             

New vehicle retail sales

4.5

   

5.1

         

Used vehicle retail sales

4.1

   

4.9

         

Used vehicle wholesale sales

(2.3)

   

(1.1)

         

Total used

2.9

   

3.8

         

Parts and service sales

55.4

   

57.7

         

Finance, insurance and other, net

100.0

   

100.0

         

Total gross margin

10.7

   

11.0

         

GROSS PROFIT

             

New vehicle retail sales

$

25,956

   

$

33,291

   

(22.0)

   

(17.6)

 

Used vehicle retail sales

15,161

   

19,143

   

(20.8)

   

(15.7)

 

Used vehicle wholesale sales

(2,013)

   

(1,029)

   

(95.6)

   

(105.0)

 

Total used

13,148

   

18,114

   

(27.4)

   

(22.5)

 

Parts and service sales

57,724

   

59,518

   

(3.0)

   

2.9

 

Finance, insurance and other, net

28,307

   

28,841

   

(1.9)

   

4.1

 

Total gross profit

$

125,135

   

$

139,764

   

(10.5)

   

(5.0)

 

UNITS SOLD

             

Retail new vehicles sold

18,324

   

19,947

   

(8.1)

     

Retail used vehicles sold

15,343

   

15,654

   

(2.0)

     

Wholesale used vehicles sold

10,474

   

11,209

   

(6.6)

     

Total used

25,817

   

26,863

   

(3.9)

     

AVERAGE RETAIL SALES PRICE

             

New vehicle retail

$

31,592

   

$

32,972

   

(4.2)

   

1.8

 

Used vehicle retail

$

24,026

   

$

24,740

   

(2.9)

   

3.2

 

GROSS PROFIT PER UNIT SOLD

             

New vehicle retail sales

$

1,417

   

$

1,669

   

(15.1)

   

(10.3)

 

Used vehicle retail sales

$

988

   

$

1,223

   

(19.2)

   

(14.0)

 

Used vehicle wholesale sales

$

(192)

   

$

(92)

   

(108.7)

   

(119.4)

 

Total used

$

509

   

$

674

   

(24.5)

   

(19.4)

 

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

$

841

   

$

810

   

3.8

   

10.1

 

OTHER

             

SG&A expenses

$

108,286

   

$

114,985

   

(5.8)

   

0.1

 

SG&A as % revenues

9.3

   

9.1

         

SG&A as % gross profit

86.5

   

82.3

         

Operating margin %

0.9

   

1.5

         
 

(1) See the section of this release titled "Non-GAAP Financial Measures and Same Store Data."

 

 

Group 1 Automotive, Inc.

Additional Information - Same Store Brazil (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)

               
 

Three Months Ended June 30,

 

2019

 

2018

 

%
Increase/(Decrease)

 

Constant Currency (1)
% Increase/(Decrease)

REVENUES

             

New vehicle retail sales

$

69,103

   

$

69,393

   

(0.4)

   

9.1

 

Used vehicle retail sales

18,707

   

21,014

   

(11.0)

   

(2.6)

 

Used vehicle wholesale sales

4,238

   

3,124

   

35.7

   

47.6

 

Total used

22,945

   

24,138

   

(4.9)

   

3.9

 

Parts and service sales

11,683

   

11,189

   

4.4

   

14.0

 

Finance, insurance and other, net

1,618

   

1,990

   

(18.7)

   

(11.2)

 

Total revenues

$

105,349

   

$

106,710

   

(1.3)

   

8.0

 

GROSS MARGIN %

             

New vehicle retail sales

5.9

   

6.2

         

Used vehicle retail sales

8.2

   

5.9

         

Used vehicle wholesale sales

6.6

   

2.7

         

Total used

7.9

   

5.4

         

Parts and service sales

44.5

   

44.6

         

Finance, insurance and other, net

100.0

   

100.0

         

Total gross margin

12.1

   

11.8

         

GROSS PROFIT

             

New vehicle retail sales

$

4,091

   

$

4,284

   

(4.5)

   

4.5

 

Used vehicle retail sales

1,528

   

1,230

   

24.2

   

35.8

 

Used vehicle wholesale sales

278

   

85

   

227.1

   

274.0

 

Total used

1,806

   

1,315

   

37.3

   

51.4

 

Parts and service sales

5,196

   

4,994

   

4.0

   

13.8

 

Finance, insurance and other, net

1,618

   

1,990

   

(18.7)

   

(11.2)

 

Total gross profit

$

12,711

   

$

12,583

   

1.0

   

10.5

 

UNITS SOLD

             

Retail new vehicles sold

2,301

   

2,150

   

7.0

     

Retail used vehicles sold

928

   

1,007

   

(7.8)

     

Wholesale used vehicles sold

426

   

313

   

36.1

     

Total used

1,354

   

1,320

   

2.6

     

AVERAGE RETAIL SALES PRICE

             

New vehicle retail

$

30,032

   

$

32,276

   

(7.0)

   

1.9

 

Used vehicle retail

$

20,158

   

$

20,868

   

(3.4)

   

5.6

 

GROSS PROFIT PER UNIT SOLD

             

New vehicle retail sales

$

1,778

   

$

1,993

   

(10.8)

   

(2.3)

 

Used vehicle retail sales

$

1,647

   

$

1,221

   

34.9

   

47.4

 

Used vehicle wholesale sales

$

653

   

$

272

   

140.1

   

174.8

 

Total used

$

1,334

   

$

996

   

33.9

   

47.6

 

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

$

501

   

$

630

   

(20.5)

   

(13.1)

 

OTHER

             

SG&A expenses

$

11,506

   

$

11,307

   

1.8

   

11.0

 

Adjusted SG&A expenses (1)

$

11,506

   

$

10,880

   

5.8

   

15.6

 

SG&A as % revenues

10.9

   

10.6

         

Adjusted SG&A as % revenues (1)

10.9

   

10.2

         

SG&A as % gross profit

90.5

   

89.9

         

Adjusted SG&A as % gross profit (1)

90.5

   

86.5

         

Operating margin %

0.2

   

0.8

         

Adjusted operating margin % (1)

0.8

   

1.2

         

 

 

(1) See the section of this release titled "Non-GAAP Financial Measures and Same Store Data."

 

 

Group 1 Automotive, Inc.

Additional Information - Same Store Brazil (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)

   
 

Six Months Ended June 30,

 

2019

 

2018

 

%

Increase/(Decrease)

 

Constant Currency (1)

% Increase/(Decrease)

REVENUES

             

New vehicle retail sales

$

126,019

   

$

138,626

   

(9.1)

   

2.6

 

Used vehicle retail sales

38,150

   

45,205

   

(15.6)

   

(4.8)

 

Used vehicle wholesale sales

8,288

   

6,966

   

19.0

   

34.6

 

Total used

46,438

   

52,171

   

(11.0)

   

0.5

 

Parts and service sales

22,953

   

23,049

   

(0.4)

   

12.2

 

Finance, insurance and other, net

3,333

   

3,861

   

(13.7)

   

(3.3)

 

Total revenues

$

198,743

   

$

217,707

   

(8.7)

   

3.0

 

GROSS MARGIN %

             

New vehicle retail sales

6.0

   

5.8

         

Used vehicle retail sales

6.9

   

5.9

         

Used vehicle wholesale sales

6.9

   

3.4

         

Total used

6.9

   

5.6

         

Parts and service sales

44.0

   

45.0

         

Finance, insurance and other, net

100.0

   

100.0

         

Total gross margin

12.1

   

11.6

         

GROSS PROFIT

             

New vehicle retail sales

$

7,507

   

$

8,065

   

(6.9)

   

4.6

 

Used vehicle retail sales

2,630

   

2,681

   

(1.9)

   

11.2

 

Used vehicle wholesale sales

574

   

237

   

142.2

   

182.1

 

Total used

3,204

   

2,918

   

9.8

   

25.1

 

Parts and service sales

10,102

   

10,367

   

(2.6)

   

9.9

 

Finance, insurance and other, net

3,333

   

3,861

   

(13.7)

   

(3.3)

 

Total gross profit

$

24,146

   

$

25,211

   

(4.2)

   

7.9

 

UNITS SOLD

             

Retail new vehicles sold

4,151

   

4,217

   

(1.6)

     

Retail used vehicles sold

1,919

   

2,078

   

(7.7)

     

Wholesale used vehicles sold

837

   

670

   

24.9

     

Total used

2,756

   

2,748

   

0.3

     

AVERAGE RETAIL SALES PRICE

             

New vehicle retail

$

30,359

   

$

32,873

   

(7.6)

   

4.2

 

Used vehicle retail

$

19,880

   

$

21,754

   

(8.6)

   

3.1

 

GROSS PROFIT PER UNIT SOLD

             

New vehicle retail sales

$

1,808

   

$

1,912

   

(5.4)

   

6.3

 

Used vehicle retail sales

$

1,371

   

$

1,290

   

6.3

   

20.4

 

Used vehicle wholesale sales

$

686

   

$

354

   

93.8

   

125.8

 

Total used

$

1,163

   

$

1,062

   

9.5

   

24.7

 

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

$

549

   

$

613

   

(10.4)

   

0.3

 

OTHER

             

SG&A expenses

$

22,568

   

$

23,038

   

(2.0)

   

10.2

 

Adjusted SG&A expenses (1)

$

22,568

   

$

22,611

   

(0.2)

   

12.5

 

SG&A as % revenues

11.4

   

10.6

         

Adjusted SG&A as % revenues (1)

11.4

   

10.4

         

SG&A as % gross profit

93.5

   

91.4

         

Adjusted SG&A as % gross profit (1)

93.5

   

89.7

         

Operating margin %

0.1

   

0.6

         

Adjusted operating margin % (1)

0.4

   

0.8

         

 

 

(1) See the section of this release titled "Non-GAAP Financial Measures and Same Store Data."

 

 

Group 1 Automotive, Inc.

Additional Information - Same Store Consolidated (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)

               
 

Three Months Ended June 30,

 

2019

 

2018

 

%
Increase/(Decrease)

 

Constant Currency (1) 
% Increase/(Decrease)

REVENUES

             

New vehicle retail sales

$

1,533,202

   

$

1,516,282

   

1.1

   

2.7

 

Used vehicle retail sales

821,245

   

803,227

   

2.2

   

3.8

 

Used vehicle wholesale sales

93,619

   

90,289

   

3.7

   

7.1

 

Total used

914,864

   

893,516

   

2.4

   

4.2

 

Parts and service sales

372,296

   

345,040

   

7.9

   

9.1

 

Finance, insurance and other, net

124,369

   

112,667

   

10.4

   

11.3

 

Total revenues

$

2,944,731

   

$

2,867,505

   

2.7

   

4.3

 

GROSS MARGIN %

             

New vehicle retail sales

4.4

   

4.9

         

Used vehicle retail sales

6.4

   

6.2

         

Used vehicle wholesale sales

   

0.6

         

Total used

5.7

   

5.7

         

Parts and service sales

53.8

   

54.7

         

Finance, insurance and other, net

100.0

   

100.0

         

Total gross margin

15.1

   

14.9

         

GROSS PROFIT

             

New vehicle retail sales

$

68,122

   

$

74,799

   

(8.9)

   

(7.7)

 

Used vehicle retail sales

52,218

   

49,990

   

4.5

   

5.8

 

Used vehicle wholesale sales

5

   

571

   

(99.1)

   

(103.3)

 

Total used

52,223

   

50,561

   

3.3

   

4.5

 

Parts and service sales

200,253

   

188,908

   

6.0

   

7.2

 

Finance, insurance and other, net

124,369

   

112,667

   

10.4

   

11.3

 

Total gross profit

$

444,967

   

$

426,935

   

4.2

   

5.3

 

UNITS SOLD

             

Retail new vehicles sold

40,998

   

42,035

   

(2.5)

     

Retail used vehicles sold

38,753

   

37,107

   

4.4

     

Wholesale used vehicles sold

12,648

   

13,189

   

(4.1)

     

Total used

51,401

   

50,296

   

2.2

     

AVERAGE RETAIL SALES PRICE

             

New vehicle retail

$

37,397

   

$

36,072

   

3.7

   

5.3

 

Used vehicle retail

$

21,192

   

$

21,646

   

(2.1)

   

(0.6)

 

GROSS PROFIT PER UNIT SOLD

             

New vehicle retail sales

$

1,662

   

$

1,779

   

(6.6)

   

(5.3)

 

Used vehicle retail sales

$

1,347

   

$

1,347

   

   

1.3

 

Used vehicle wholesale sales

$

   

$

43

   

(100.0)

   

(103.4)

 

Total used

$

1,016

   

$

1,005

   

1.1

   

2.3

 

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

$

1,559

   

$

1,424

   

9.5

   

10.4

 

OTHER

             

SG&A expenses

$

331,688

   

$

315,906

   

5.0

   

6.4

 

Adjusted SG&A expenses (1)

$

327,696

   

$

310,885

   

5.4

   

6.8

 

SG&A as % revenues

11.3

   

11.0

         

Adjusted SG&A as % revenues (1)

11.1

   

10.8

         

SG&A as % gross profit

74.5

   

74.0

         

Adjusted SG&A as % gross profit (1)

73.6

   

72.8

         

Operating margin %

3.2

   

3.2

         

Adjusted operating margin % (1)

3.4

   

3.5

         

 

 

(1) See the section of this release titled "Non-GAAP Financial Measures and Same Store Data."

 

Group 1 Automotive, Inc.

Additional Information - Same Store Consolidated (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)

     
   

Six Months Ended June 30,

   

2019

 

2018

 

% Increase/

(Decrease)

 

Constant Currency (1)

% Increase/(Decrease)

REVENUES

             

New vehicle retail sales

$

2,875,260

   

$

2,972,070

   

(3.3)

   

(1.5)

 

Used vehicle retail sales

1,596,188

   

1,559,578

   

2.3

   

4.1

 

Used vehicle wholesale sales

180,764

   

191,238

   

(5.5)

   

(2.0)

 

Total used

1,776,952

   

1,750,816

   

1.5

   

3.5

 

Parts and service sales

728,291

   

680,412

   

7.0

   

8.4

 

Finance, insurance and other, net

233,452

   

222,112

   

5.1

   

6.1

 

Total revenues

$

5,613,955

   

$

5,625,410

   

(0.2)

   

1.5

 

GROSS MARGIN %

             

New vehicle retail sales

4.7

   

5.0

         

Used vehicle retail sales

6.1

   

5.9

         

Used vehicle wholesale sales

0.4

   

1.2

         

Total used

5.5

   

5.4

         

Parts and service sales

53.7

   

54.2

         

Finance, insurance and other, net

100.0

   

100.0

         

Total gross margin

15.3

   

14.8

         

GROSS PROFIT

             

New vehicle retail sales

$

136,436

   

$

147,555

   

(7.5)

   

(5.9)

 

Used vehicle retail sales

97,728

   

92,352

   

5.8

   

7.3

 

Used vehicle wholesale sales

712

   

2,249

   

(68.3)

   

(68.5)

 

Total used

98,440

   

94,601

   

4.1

   

5.5

 

Parts and service sales

391,026

   

368,757

   

6.0

   

7.4

 

Finance, insurance and other, net

233,452

   

222,112

   

5.1

   

6.1

 

Total gross profit

$

859,354

   

$

833,025

   

3.2

   

4.4

 

UNITS SOLD

             

Retail new vehicles sold

77,632

   

81,766

   

(5.1)

     

Retail used vehicles sold

75,424

   

72,182

   

4.5

     

Wholesale used vehicles sold

24,850

   

28,108

   

(11.6)

     

Total used

100,274

   

100,290

   

     

AVERAGE RETAIL SALES PRICE

             

New vehicle retail

$

37,037

   

$

36,348

   

1.9

   

3.7

 

Used vehicle retail

$

21,163

   

$

21,606

   

(2.1)

   

(0.3)

 

GROSS PROFIT PER UNIT SOLD

             

New vehicle retail sales

$

1,757

   

$

1,805

   

(2.7)

   

(0.9)

 

Used vehicle retail sales

$

1,296

   

$

1,279

   

1.3

   

2.7

 

Used vehicle wholesale sales

$

29

   

$

80

   

(63.8)

   

(64.3)

 

Total used

$

982

   

$

943

   

4.1

   

5.5

 

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

$

1,525

   

$

1,443

   

5.7

   

6.7

 

OTHER

             

SG&A expenses

$

647,325

   

$

627,872

   

3.1

   

4.6

 

Adjusted SG&A expenses (1)

$

640,607

   

$

622,851

   

2.9

   

4.4

 

SG&A as % revenues

11.5

   

11.2

         

Adjusted SG&A as % revenues (1)

11.4

   

11.1

         

SG&A as % gross profit

75.3

   

75.4

         

Adjusted SG&A as % gross profit (1)

74.5

   

74.8

         

Operating margin %

3.2

   

3.0

         

Adjusted operating margin % (1)

3.3

   

3.2

         
 

(1) See the section of this release titled "Non-GAAP Financial Measures and Same Store Data."

 

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - U.S. (1)

(Unaudited)

(Dollars in thousands)

     
   

Three Months Ended June 30,

   

2019

 

2018

 

% Increase/

(Decrease)

SG&A RECONCILIATION

         
 

As reported

$

268,077

   

$

234,279

   

14.4

 
 

  Pre-tax adjustments:

         
 

Catastrophic events

(3,992)

   

(5,812)

     
 

Gain (loss) on real estate and dealership transactions

   

20,119

     
 

Legal matters

   

(2,000)

     
 

Adjusted SG&A

$

264,085

   

$

246,586

   

7.1

 

SG&A AS % REVENUES

         
 

Unadjusted

11.8

   

10.8

     
 

Adjusted

11.6

   

11.4

     

SG&A AS % GROSS PROFIT:

         
 

Unadjusted

71.2

   

66.8

     
 

Adjusted

70.1

   

70.3

     

OPERATING MARGIN %

         
 

Unadjusted

4.1

   

4.6

     
 

Adjusted (2)

4.3

   

4.2

     

PRETAX MARGIN %

         
 

Unadjusted

2.8

   

3.2

     
 

Adjusted (2)

3.0

   

2.8

     

SAME STORE SG&A RECONCILIATION

         
 

As reported

$

263,184

   

$

244,896

   

7.5

 
 

  Pre-tax adjustments:

         
 

Catastrophic events

(3,992)

   

(5,812)

     
 

Gain (loss) on real estate and dealership transactions

   

3,218

     
 

Legal matters

   

(2,000)

     
 

Adjusted Same Store SG&A

$

259,192

   

$

240,302

   

7.9

 

SAME STORE SG&A AS % REVENUES

         
 

Unadjusted

11.8

   

11.6

     
 

Adjusted

11.6

   

11.4

     

SAME STORE SG&A AS % GROSS PROFIT

         
 

Unadjusted

71.1

   

71.7

     
 

Adjusted

70.0

   

70.4

     

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

4.2

   

3.9

     
 

Adjusted (3)

4.4

   

4.2

     

 

 

(1) See the section of this release titled "Non-GAAP Financial Measures and Same Store Data."

(2) Excludes the impact of SG&A reconciling items above, as well as a non-cash asset impairment charge of $4.3 million for the three months ended June 30, 2018.

(3) Excludes the impact of Same Store SG&A reconciling items above, as well as a non-cash asset impairment charge of $2.9 million for the three months ended June 30, 2018.

 

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - U.S. (1)

(Unaudited)

(Dollars in thousands)

     
   

Six Months Ended June 30,

   

2019

 

2018

 

% Increase/
(Decrease)

SG&A RECONCILIATION

         
 

As reported

$

524,230

   

$

487,220

   

7.6

 
 

  Pre-tax adjustments:

         
 

Catastrophic events

(5,965)

   

(5,812)

     
 

Gain (loss) on real estate and dealership transactions

5,216

   

20,119

     
 

Legal matters

(1,829)

   

(2,000)

     
 

Adjusted SG&A

$

521,652

   

$

499,527

   

4.4

 

SG&A AS % REVENUES

         
 

Unadjusted

12.1

   

11.4

     
 

Adjusted

12.0

   

11.7

     

SG&A AS % OF GROSS PROFIT

         
 

Unadjusted

72.4

   

71.0

     
 

Adjusted

72.1

   

72.8

     

OPERATING MARGIN %

         
 

Unadjusted

4.0

   

4.0

     
 

Adjusted (2)

4.0

   

3.8

     

PRETAX MARGIN %

         
 

Unadjusted

2.5

   

2.6

     
 

Adjusted (2)

2.6

   

2.4

     

SAME STORE SG&A RECONCILIATION

         
 

As reported

$

516,471

   

$

489,849

   

5.4

 
 

  Pre-tax adjustments:

         
 

Catastrophic events

(5,964)

   

(5,811)

     
 

Gain (loss) on real estate and dealership transactions

1,076

   

3,218

     
 

Legal matters

(1,829)

   

(2,000)

     
 

Adjusted Same Store SG&A

$

509,754

   

$

485,256

   

5.0

 

SAME STORE SG&A AS % REVENUES

         
 

Unadjusted

12.2

   

11.8

     
 

Adjusted

12.0

   

11.7

     

SAME STORE SG&A AS % GROSS PROFIT

         
 

Unadjusted

72.7

   

73.3

     
 

Adjusted

71.8

   

72.6

     

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

3.9

   

3.6

     
 

Adjusted (3)

4.1

   

3.8

     

 

 

(1) See the section of this release titled "Non-GAAP Financial Measures and Same Store Data."

(2) Excludes the impact of SG&A reconciling items above, as well as a non-cash asset impairment charge of $4.3 million for the six months ended June 30, 2018.

(3) Excludes the impact of Same Store SG&A reconciling items above, as well as a non-cash asset impairment charge of $2.9 million for the six months ended June 30, 2018.

 

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Brazil (1)

(Unaudited)

 (Dollars in thousands)

     
   

Three Months Ended June 30,

   

2019

 

2018

 

%
Increase/(Decrease)

SG&A RECONCILIATION

         
 

As reported

$

11,602

   

$

11,555

   

0.4

 
 

  Pre-tax adjustments:

         
 

Gain (loss) on real estate and dealership transactions

182

   

     
 

Legal matters

378

   

(550)

     
 

Adjusted SG&A

$

12,162

   

$

11,005

   

10.5

 

SG&A AS % REVENUES

         
 

Unadjusted

10.3

   

10.6

     
 

Adjusted

10.8

   

10.1

     

SG&A AS % GROSS PROFIT

         
 

Unadjusted

86.1

   

91.1

     
 

Adjusted

90.3

   

86.7

     

OPERATING MARGIN %

         
 

Unadjusted

0.8

   

0.6

     
 

Adjusted (2)

0.8

   

1.1

     

PRETAX MARGIN %

         
 

Unadjusted

0.8

   

0.2

     
 

Adjusted (2)

0.8

   

0.7

     

SAME STORE SG&A RECONCILIATION

         
 

As reported

$

11,506

   

$

11,307

   

1.8

 
 

  Pre-tax adjustments:

         
 

Legal matters

   

(427)

     
 

Adjusted Same Store SG&A

$

11,506

   

$

10,880

   

5.8

 

SAME STORE SG&A AS % REVENUES

         
 

Unadjusted

10.9

   

10.6

     
 

Adjusted

10.9

   

10.2

     

SAME STORE SG&A AS % GROSS PROFIT

         
 

Unadjusted

90.5

   

89.9

     
 

Adjusted

90.5

   

86.5

     

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

0.2

   

0.8

     
 

Adjusted (3)

0.8

   

1.2

     

 

 

(1) See the section of this release titled "Non-GAAP Financial Measures and Same Store Data."

(2) Excludes the impact of SG&A reconciling items above, as well as a non-cash asset impairment charge of $0.5 million for the three months ended June 30, 2019.

(3) Excludes the impact of Same Store SG&A reconciling items above, as well as a non-cash asset impairment charge of $0.5 million for the three months ended June 30, 2019.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Brazil (1)

(Unaudited)

 (Dollars in thousands)

             
   

Six Months Ended June 30,

   

2019

 

2018

 

% Increase/

(Decrease)

SG&A RECONCILIATION

         
 

As reported

$

23,965

   

$

23,365

   

2.6

 
 

  Pre-tax adjustments:

         
 

Gain (loss) on real estate and dealership transactions

182

   

     
 

Legal matters

(194)

   

(550)

     
 

Adjusted SG&A

$

23,953

   

$

22,815

   

5.0

 

SG&A AS % REVENUES

         
 

Unadjusted

11.1

   

10.6

     
 

Adjusted

11.1

   

10.4

     

SG&A AS % OF GROSS PROFIT

         
 

Unadjusted

91.9

   

92.3

     
 

Adjusted

91.9

   

90.1

     

OPERATING MARGIN %

         
 

Unadjusted

0.3

   

0.5

     
 

Adjusted (2)

0.6

   

0.7

     

PRETAX MARGIN %

         
 

Unadjusted

0.2

   

0.1

     
 

Adjusted (2)

0.5

   

0.3

     

SAME STORE SG&A RECONCILIATION

         
 

As reported

$

22,568

   

$

23,038

   

(2.0)

 
 

  Pre-tax adjustments:

         
 

Legal matters

   

(427)

     
 

Adjusted Same Store SG&A

$

22,568

   

$

22,611

   

(0.2)

 

SAME STORE SG&A AS % REVENUES

         
 

Unadjusted

11.4

   

10.6

     
 

Adjusted

11.4

   

10.4

     

SAME STORE SG&A AS % GROSS PROFIT

         
 

Unadjusted

93.5

   

91.4

     
 

Adjusted

93.5

   

89.7

     

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

0.1

   

0.6

     
 

Adjusted (3)

0.4

   

0.8

     
 

(1) See the section of this release titled "Non-GAAP Financial Measures and Same Store Data."

(2) Excludes the impact of SG&A reconciling items above, as well as a non-cash asset impairment charge of $0.5 million for the six months ended June 30, 2019.

(3) Excludes the impact of Same Store SG&A reconciling items above, as well as a non-cash asset impairment charge of $0.5 million for the six months ended June 30, 2019.

 

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Consolidated (1)

(Unaudited)

 (Dollars in thousands, except per share amounts)

     
   

Three Months Ended June 30,

   

2019

 

2018

 

%

Increase/(Decrease)

NET INCOME (LOSS) RECONCILIATION

         
 

As reported

         
 

  Pretax net income (loss)

$

63,233

   

$

75,188

     
 

  Income tax benefit (provision)

(14,008)

   

(18,725)

     
 

    Net income (loss)

$

49,225

   

$

56,463

   

(12.8)

 
 

      Effective tax rate

22.2

%

 

24.9

%

   
 

Adjustments:

         
 

Catastrophic events

         
 

Pre-tax

$

3,992

   

$

5,812

     
 

Tax impact

$

(963)

   

$

(1,444)

     
 

(Gain) loss on real estate and dealership transactions

         
 

Pre-tax

$

(182)

   

$

(20,119)

     
 

Tax impact

$

533

   

$

4,917

     
 

Legal matters

         
 

Pre-tax

$

(378)

   

$

2,550

     
 

Tax impact

$

   

$

(568)

     
 

Non-cash asset impairment

         
 

Pre-tax

$

537

   

$

4,268

     
 

Tax impact

$

   

$

(1,089)

     
 

Adjusted

         
 

  Pretax net income (loss)

$

67,202

   

$

67,699

     
 

  Income tax benefit (provision)

(14,438)

   

(16,909)

     
 

Adjusted net income (loss)

$

52,764

   

$

50,790

   

3.9

 
 

      Effective tax rate

21.5

%

 

25.0

%

   

ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO DILUTED

         
 

COMMON SHARES RECONCILIATION

         
 

Adjusted net income (loss)

$

52,764

   

$

50,790

   

3.9

 
 

Less: Adjusted earnings allocated to participating securities

1,975

   

1,722

   

14.7

 
 

Adjusted net income (loss) available to diluted common shares

$

50,789

   

$

49,068

   

3.5

 

DILUTED INCOME (LOSS) PER COMMON SHARE RECONCILIATION

         
 

As reported

$

2.64

   

$

2.72

   

(2.9)

 
 

  After-tax adjustments:

         
 

Catastrophic events

0.16

   

0.21

     
 

(Gain) loss on real estate and dealership transactions

0.02

   

(0.73)

     
 

Legal matters

(0.02)

   

0.10

     
 

Non-cash asset impairment

0.03

   

0.15

     
 

Adjusted diluted income (loss) per share

$

2.83

   

$

2.45

   

15.5

 

SG&A RECONCILIATION

         
 

As reported

$

338,715

   

$

308,092

   

9.9

 
 

  Pre-tax adjustments:

         
 

Catastrophic events

(3,992)

   

(5,812)

     
 

Gain (loss) on real estate and dealership transactions

182

   

20,119

     
 

Legal matters

378

   

(2,550)

     
 

Adjusted SG&A

$

335,283

   

$

319,849

   

4.8

 

SG&A AS % REVENUES

         
 

Unadjusted

11.3

   

10.5

     
 

Adjusted

11.2

   

10.9

     

SG&A AS % GROSS PROFIT

         
 

Unadjusted

74.6

   

70.3

     
 

Adjusted

73.8

   

73.0

     
 
 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Consolidated - (Continued) (1)

(Unaudited)

 (Dollars in thousands, except per share amounts)

             
   

Three Months Ended June 30,

   

2019

 

2018

 

%

Increase/(Decrease)

OPERATING MARGIN %

         
 

Unadjusted

3.2

   

3.7

     
 

Adjusted (2)

3.4

   

3.5

     

PRETAX MARGIN %

         
 

Unadjusted

2.1

   

2.6

     
 

Adjusted (2)

2.2

   

2.3

     

SAME STORE SG&A RECONCILIATION

         
 

As reported

$

331,688

   

$

315,906

   

5.0

 
 

  Pre-tax adjustments:

         
 

Catastrophic events

(3,992)

   

(5,812)

     
 

Gain (loss) on real estate and dealership transactions

   

3,218

     
 

Legal matters

   

(2,427)

     
 

Adjusted Same Store SG&A

$

327,696

   

$

310,885

   

5.4

 

SAME STORE SG&A AS % REVENUES

         
 

Unadjusted

11.3

   

11.0

     
 

Adjusted

11.1

   

10.8

     

SAME STORE SG&A AS % GROSS PROFIT

         
 

Unadjusted

74.5

   

74.0

     
 

Adjusted

73.6

   

72.8

     

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

3.2

   

3.2

     
 

Adjusted (3)

3.4

   

3.5

     

 

 

(1) See the section of this release titled "Non-GAAP Financial Measures and Same Store Data."

(2) Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $0.5 million and $4.3 million for the three months ended June 30, 2019 and 2018.

(3) Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $0.5 million and $2.9 million for the three months ended June 30, 2019 and 2018.

 

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Consolidated (1)

(Unaudited)

 (Dollars in thousands, except per share amounts)

     
   

Six Months Ended June 30, 2019

   

2019

 

2018

 

%

Increase/(Decrease)

NET INCOME (LOSS) RECONCILIATION

         
 

As reported

         
 

  Pretax net income (loss)

$

115,409

   

$

121,355

     
 

  Income tax benefit (provision)

(27,536)

   

(29,078)

     
 

    Net income (loss)

$

87,873

   

$

92,277

   

(4.8)

 
 

      Effective tax rate

23.9

%

 

24.0

%

   
 

Adjustments:

         
 

Catastrophic events

         
 

Pre-tax

$

5,965

   

$

5,812

     
 

Tax impact

$

(1,482)

   

$

(1,444)

     
 

(Gain) loss on real estate and dealership transactions

         
 

Pre-tax

$

(5,398)

   

$

(20,119)

     
 

Tax impact

$

1,914

   

$

4,917

     
 

Legal matters

         
 

Pre-tax

$

2,023

   

$

2,550

     
 

Tax impact

$

(481)

   

$

(568)

     
 

Non-cash asset impairment

         
 

Pre-tax

$

537

   

$

4,268

     
 

Tax impact

$

   

$

(1,089)

     
 

Adjusted

         
 

  Pretax net income (loss)

$

118,536

   

$

113,866

     
 

  Income tax benefit (provision)

(27,585)

   

(27,262)

     
 

Adjusted net income (loss)

$

90,951

   

$

86,604

   

5.0

 
 

      Effective tax rate

23.3

%

 

23.9

%

   

ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO DILUTED

         
 

COMMON SHARES RECONCILIATION

         
 

Adjusted net income (loss)

$

90,951

   

$

86,604

   

5.0

 
 

Less: Adjusted earnings allocated to participating securities

3,415

   

2,930

   

16.6

 
 

Adjusted net income (loss) available to diluted common shares

$

87,536

   

$

83,674

   

4.6

 

DILUTED INCOME (LOSS) PER COMMON SHARE RECONCILIATION

         
 

As reported

$

4.73

   

$

4.42

   

7.0

 
 

  After-tax adjustments:

         
 

Catastrophic events

0.25

   

0.21

     
 

(Gain) loss on real estate and dealership transactions

(0.19)

   

(0.73)

     
 

Legal matters

0.08

   

0.10

     
 

Non-cash asset impairment

0.03

   

0.15

     
 

Adjusted diluted income (loss) per share

$

4.90

   

$

4.15

   

18.1

 

SG&A RECONCILIATION

         
 

As reported

$

666,423

   

$

632,439

   

5.4

 
 

  Pre-tax adjustments:

         
 

Catastrophic events

(5,965)

   

(5,812)

     
 

Gain (loss) on real estate and dealership transactions

5,398

   

20,119

     
 

Legal matters

(2,023)

   

(2,550)

     
 

Adjusted SG&A

$

663,833

   

$

644,196

   

3.0

 

SG&A AS % REVENUES

         
 

Unadjusted

11.5

   

10.9

     
 

Adjusted

11.4

   

11.1

     

SG&A AS % OF GROSS PROFIT

         
 

Unadjusted

75.2

   

73.7

     
 

Adjusted

74.9

   

75.1

     
 
 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Consolidated - (Continued) (1)

(Unaudited)

 (Dollars in thousands, except per share amounts)

             
   

Six Months Ended June 30, 2019

   

2019

 

2018

 

%

Increase/(Decrease)

OPERATING MARGIN %

         
 

Unadjusted

3.2

   

3.2

     
 

Adjusted (2)

3.2

   

3.1

     

PRETAX MARGIN %

         
 

Unadjusted

2.0

   

2.1

     
 

Adjusted (2)

2.0

   

2.0

     

SAME STORE SG&A RECONCILIATION

         
 

As reported

$

647,325

   

$

627,872

   

3.1

 
 

  Pre-tax adjustments:

         
 

Catastrophic events

(5,965)

   

(5,812)

     
 

Gain (loss) on real estate and dealership transactions

1,076

   

3,218

     
 

Legal matters

(1,829)

   

(2,427)

     
 

Adjusted Same Store SG&A

$

640,607

   

$

622,851

   

2.9

 

SAME STORE SG&A AS % REVENUES

         
 

Unadjusted

11.5

   

11.2

     
 

Adjusted

11.4

   

11.1

     

SAME STORE SG&A AS % GROSS PROFIT

         
 

Unadjusted

75.3

   

75.4

     
 

Adjusted

74.5

   

74.8

     

SAME STORE OPERATING MARGIN %

         
 

Unadjusted

3.2

   

3.0

     
 

Adjusted (3)

3.3

   

3.2

     

 

 

(1) See the section of this release titled "Non-GAAP Financial Measures and Same Store Data."

(2) Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $0.5 million and $4.3 million for the six months ended June 30, 2019 and 2018.

(3) Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $0.5 million and $2.9 million for the six months ended June 30, 2019 and 2018.

 

 

SOURCE Group 1 Automotive, Inc.