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

Group 1 Automotive

800 Gessner
Houston, TX 77024

  • Sales: (713) 647-5700
Investor Relations

Group 1 Automotive Reports Record Profits For First Quarter 2012

PR Newswire
HOUSTON

PR Newswire

HOUSTON, April 26, 2012 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), a Fortune 500 automotive retailer, today reported record first-quarter 2012 net income of $23.1 million, a 49.1 percent increase, and record first-quarter diluted earnings per common share of $0.97, a 51.6 percent increase, on a year-over-year comparable basis for the period ended March 31, 2012.

First-Quarter 2012 Highlights

  • Total revenues of $1.66 billion were the best reported first quarter and second-best all-time quarter in the history of the company.
  • Total gross margin was 15.6 percent, as gross profit grew 17.4 percent from the prior year to an all-time record of $260.4 million.
  • New vehicle gross profit increased 23.5 percent on 16.3 percent higher revenues, as the company retailed 13.1 percent more units and the average selling price expanded 2.9 percent, to $32,674.
  • Retail used vehicle unit sales surged 24.0 percent and the average selling price increased 3.4 percent, to $20,000, driving gross profit growth of 25.9 percent on 28.3 percent higher revenues.
  • Parts and service revenues increased 9.3 percent from the prior year, reflecting continued growth in customer-pay, wholesale parts and collision businesses.
  • Finance and insurance gross profit per retail unit of $1,175 was also a record first-quarter result.
  • Further demonstrating the improving cost leverage, selling, general and administrative expenses as a percent of gross profit improved 280 basis points, to 76.5 percent, from the prior-year period.
  • Operating margin expanded to 3.2 percent, a 40 basis-point improvement from the prior-year period.

"Group 1's strong, first-quarter operating and financial results included record-setting revenues, gross profit and earnings for our shareholders," said Earl J. Hesterberg, Group 1's president and chief executive officer. "In addition, I am delighted with our operating margin expansion, which reflects the improvements and efficiencies we have implemented during the last several years. Based on the first-quarter results, we now expect new vehicle industry sales of 14.5 million units in 2012."

Corporate Development Recap
As previously announced during the first quarter, Group 1 added three franchises to its portfolio including Volkswagen, BMW and Hyundai franchises that are expected to add $143.5 million in annual revenues.

First-Quarter Earnings Conference Call
Group 1's senior management will host a conference call today at 10 a.m. ET to discuss the first-quarter financial results and the company's outlook and strategy.

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

The conference call will also be available live by dialing in 10 minutes prior to the start of the call at:

Domestic: 1.877.317.6789
International: 1.412.317.6789
Conference ID: 10012655

A telephonic replay will be available following the call through May 11 at 9 a.m. ET by dialing:

Domestic: 1.877.344.7529
International: 1.412.317.0088
Conference ID: 10012655

About Group 1 Automotive, Inc.
Group 1 owns and operates 112 automotive dealerships, 144 franchises, and 28 collision centers in the United States and the United Kingdom that offer 31 brands of automobiles. Through its dealerships, the company sells new and used cars and light trucks; arranges related vehicle financing, service and insurance contracts; provides automotive maintenance and repair services; and sells vehicle parts.

Group 1 Automotive can be reached on the Internet at www.group1auto.com.
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.

Investor Contacts:
Kim Paper Canning
Manager, Investor Relations
Group 1 Automotive, Inc.
713-647-5741 | kpaper@group1auto.com

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

Group 1 Automotive, Inc.

Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)

             
   

Three Months Ended March 31,

   

2012

 

2011

 

% Change

REVENUES:

         

New vehicle retail sales

$  912,595

 

$  784,714

 

16.3

Used vehicle retail sales

414,974

 

323,447

 

28.3

Used vehicle wholesale sales

66,857

 

61,951

 

7.9

Parts and service

213,101

 

194,950

 

9.3

Finance and insurance

57,218

 

44,240

 

29.3

 

Total revenues

1,664,745

 

1,409,302

 

18.1

             

COST OF SALES:

         

New vehicle retail sales

859,775

 

741,942

 

15.9

Used vehicle retail sales

378,577

 

294,547

 

28.5

Used vehicle wholesale sales

64,153

 

59,457

 

7.9

Parts and service

101,816

 

91,581

 

11.2

 

Total cost of sales

1,404,321

 

1,187,527

 

18.3

             

GROSS PROFIT

260,424

 

221,775

 

17.4

             

SELLING, GENERAL AND

         

ADMINISTRATIVE EXPENSES

199,112

 

175,884

 

13.2

             

DEPRECIATION AND

         

AMORTIZATION EXPENSE

7,236

 

6,455

 

12.1

             

ASSET IMPAIRMENTS

101

 

222

 

(54.5)

             

OPERATING INCOME

53,975

 

39,214

 

37.6

             

OTHER EXPENSE:

         

Floorplan interest expense

(7,619)

 

(6,760)

 

12.7

             

Other interest expense, net

(9,040)

 

(7,942)

 

13.8

             

INCOME BEFORE INCOME TAXES

37,316

 

24,512

 

52.2

             

PROVISION FOR INCOME TAXES

(14,199)

 

(9,150)

 

55.2

             

NET INCOME

$    23,117

 

$    15,362

 

50.5

             
             

DILUTED INCOME PER SHARE

$        0.97

 

$        0.64

 

51.6

             

Weighted average dilutive common shares outstanding

22,532

 

22,736

 

(0.9)

Weighted average participating securities

1,209

 

1,450

 

(16.6)

Total weighted average shares outstanding

23,741

 

24,186

 

(1.8)

 

 
 

Group 1 Automotive, Inc.

Consolidated Balance Sheets

(Dollars in thousands)

                 
       

March 31,

 

December 31,

   
       

2012

 

2011

 

% Change

ASSETS:

 

(Unaudited)

       
                 

CURRENT ASSETS:

           
 

Cash and cash equivalents

 

$       21,316

 

$          14,895

 

43.1

 

Contracts in transit and vehicle receivables, net

 

149,606

 

167,507

 

(10.7)

 

Accounts and notes receivable, net

 

85,724

 

92,775

 

(7.6)

 

Inventories, net

 

966,209

 

867,470

 

11.4

 

Deferred income taxes

 

18,275

 

16,012

 

14.1

 

Prepaid expenses and other current assets

 

10,112

 

16,925

 

(40.3)

   

Total current assets

 

1,251,242

 

1,175,584

 

6.4

PROPERTY AND EQUIPMENT, net

 

604,831

 

585,633

 

3.3

GOODWILL AND INTANGIBLE FRANCHISE RIGHTS

 

729,116

 

702,145

 

3.8

OTHER ASSETS

 

14,635

 

12,981

 

12.7

   

Total assets

 

$  2,599,824

 

$     2,476,343

 

5.0

                 

LIABILITIES AND STOCKHOLDERS' EQUITY:

           
                 

CURRENT LIABILITIES:

           
 

Floorplan notes payable - credit facility

 

$     800,976

 

$        718,945

 

11.4

   

Offset account related to floorplan notes payable - credit facility

 

(110,998)

 

(109,207)

 

1.6

 

Floorplan notes payable - manufacturer affiliates

 

154,580

 

155,980

 

(0.9)

 

Current maturities of long-term debt

 

15,616

 

14,663

 

6.5

 

Current liabilities from interest rate risk management activities

 

4,719

 

7,273

 

(35.1)

 

Accounts payable

 

144,128

 

148,048

 

(2.6)

 

Accrued expenses

 

113,060

 

109,245

 

3.5

   

Total current liabilities

 

1,122,081

 

1,044,947

 

7.4

2.25% CONVERTIBLE SENIOR NOTES (aggregate principal of 

           
 

$182,753 at March 31, 2012 and December 31, 2011)

 

146,777

 

144,985

 

1.2

3.00% CONVERTIBLE SENIOR NOTES (aggregate principal of 

           
 

$115,000 at March 31, 2012 and December 31, 2011)

 

78,201

 

77,401

 

1.0

MORTGAGE FACILITY, net of current maturities

 

42,140

 

38,873

 

8.4

OTHER REAL ESTATE RELATED AND LONG-TERM DEBT,

           
 

net of current maturities

 

191,096

 

184,237

 

3.7

CAPITAL LEASE OBLIGATIONS RELATED TO REAL ESTATE,

           
 

net of current maturities

 

36,531

 

37,105

 

(1.5)

DEFERRED INCOME TAXES

 

83,465

 

78,459

 

6.4

LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES

 

27,075

 

26,766

 

1.2

OTHER LIABILITIES

 

38,613

 

36,470

 

5.9

COMMITMENTS AND CONTINGENCIES

           
                 

TEMPORARY EQUITY - REDEEMABLE EQUITY PORTION OF THE

           
 

3.00% CONVERTIBLE SENIOR NOTES

 

34,880

 

-

 

100.0

                 

STOCKHOLDERS' EQUITY:

           
 

Common stock

 

261

 

260

 

0.4

 

Additional paid-in capital

 

330,533

 

363,375

 

(9.0)

 

Retained earnings

 

610,986

 

591,037

 

3.4

 

Accumulated other comprehensive loss

 

(26,436)

 

(29,236)

 

(9.6)

 

Treasury stock

 

(116,379)

 

(118,336)

 

(1.7)

   

Total stockholders' equity

 

798,965

 

807,100

 

(1.0)

   

Total liabilities and stockholders' equity

 

$   2,599,824

 

$    2,476,343

 

5.0

 

               
             

Group 1 Automotive, Inc.

Consolidated Statements of Adjusted Cash Flows from Operating Activities

(Unaudited)

(In thousands)

               
     

Three Months Ended March 31,

     

2012

 

2011

 

% Change

               

Net income

 

$   23,117

 

$   15,362

 

50.5

Adjustments to reconcile net income to net cash provided by

           

  operating activities:

           
 

Asset impairments

 

101

 

222

 

(54.5)

 

Depreciation and amortization

 

7,236

 

6,455

 

12.1

 

Deferred income taxes

 

3,063

 

7,048

 

(56.5)

 

Gain on disposition of assets and franchise

 

(8)

 

-

 

100.0

 

Stock-based compensation

 

2,894

 

2,744

 

5.5

 

Amortization of debt discount and issue costs

 

3,170

 

2,878

 

10.1

 

Other

 

(71)

 

(173)

 

(59.0)

Changes in operating assets and liabilities, net of effects of

           

  acquisitions and dispositions:

           
 

Accounts payable and accrued expenses

 

7,838

 

10,436

 

(24.9)

 

Accounts and notes receivable

 

7,139

 

7,278

 

(1.9)

 

Inventories

 

(84,600)

 

5,736

 

(1,574.9)

 

Contracts-in-transit and vehicle receivables

 

18,046

 

(3,623)

 

598.1

 

Prepaid expenses and other assets

 

4,452

 

1,397

 

218.7

 

Floorplan notes payable - credit facility (1)

 

72,363

 

(3,564)

 

2,130.4

 

Floorplan notes payable - manufacturer affiliates (2)

 

(1,654)

 

(4,962)

 

(66.7)

 

Deferred revenues

 

(173)

 

(501)

 

(65.5)

Adjusted net cash provided by operating activities

 

$   62,913

 

$   46,733

 

34.6

 

(1)

Excludes net acquisition/(disposition) related activity of $9,669 for the three months ended March 31, 2012, and $2,550 for the three months ended March 31, 2011.

(2)

Excludes net acquisition/(disposition) related activity of $4,158 for the three months ended March 31, 2011.

 

 
 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

               
       

Three Months Ended

 
       

March 31,

 
       

2012 (%)

 

2011 (%)

 

NEW VEHICLE UNIT SALES GEOGRAPHIC MIX: 

         
 

Region

Geographic Market

         
 

East

Massachusetts

 

10.6

 

12.9

 
   

New Jersey

 

5.1

 

5.9

 
   

New York

 

3.4

 

3.3

 
   

Georgia

 

3.4

 

4.0

 
   

New Hampshire

 

2.8

 

3.4

 
   

Louisiana

 

2.8

 

3.1

 
   

Mississippi

 

2.2

 

2.1

 
   

South Carolina

 

1.7

 

1.6

 
   

Alabama

 

1.1

 

1.2

 
   

Maryland

 

0.7

 

0.7

 
   

Florida

 

0.7

 

0.6

 
       

34.5

 

38.8

 
               
 

West

Texas

 

38.0

 

31.8

 
   

California

 

14.6

 

15.3

 
   

Oklahoma

 

7.7

 

8.1

 
   

Kansas

 

1.1

 

0.9

 
       

61.4

 

56.1

 
               
 

International

United Kingdom

 

4.1

 

5.1

 
       

100.0

 

100.0

 
               

NEW VEHICLE UNIT SALES BRAND MIX:

         
 

Toyota/Scion/Lexus

   

30.7

 

34.5

 
 

Nissan/Infiniti

   

13.1

 

14.1

 
 

Honda/Acura

   

10.9

 

12.8

 
 

BMW/MINI

   

10.8

 

11.7

 
 

Ford

   

10.3

 

7.1

 
 

GM

   

6.2

 

4.7

 
 

Daimler

   

4.7

 

5.3

 
 

Chrysler

   

4.5

 

3.6

 
 

Volkswagen/Audi/Porsche

   

4.0

 

1.7

 
 

Other

   

4.8

 

4.5

 
       

100.0

 

100.0

 
               

NEW VEHICLE UNIT SALES OTHER MIX:

         
 

Import

   

55.8

 

58.5

 
 

Luxury

   

24.1

 

26.2

 
 

Domestic

   

20.1

 

15.3

 
       

100.0

 

100.0

 
               
 

Car

   

55.9

 

56.1

 
 

Truck

   

44.1

 

43.9

 
       

100.0

 

100.0

 

 

 
 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

(Dollars in thousands, except per unit amounts)

               
     

Three Months Ended March 31,

     

2012

 

2011

 

% Change

REVENUES:

         
 

New vehicle retail sales

$    912,595

 

$    784,714

 

16.3

 

Used vehicle retail sales

414,974

 

323,447

 

28.3

 

Used vehicle wholesale sales

66,857

 

61,951

 

7.9

   

Total used

481,831

 

385,398

 

25.0

 

Parts and service

213,101

 

194,950

 

9.3

 

Finance and insurance

57,218

 

44,240

 

29.3

   

Total 

$ 1,664,745

 

$ 1,409,302

 

18.1

               

GROSS MARGIN %:

         
 

New vehicle retail sales

5.8

 

5.5

   
 

Used vehicle retail sales

8.8

 

8.9

   
 

Used vehicle wholesale sales

4.0

 

4.0

   
   

Total used

8.1

 

8.1

   
 

Parts and service

52.2

 

53.0

   
 

Finance and insurance

100.0

 

100.0

   
   

Total

15.6

 

15.7

   
               

GROSS PROFIT:

         
 

New vehicle retail sales

$      52,820

 

$      42,772

 

23.5

 

Used vehicle retail sales

36,397

 

28,900

 

25.9

 

Used vehicle wholesale sales

2,704

 

2,494

 

8.4

   

Total used

39,101

 

31,394

 

24.5

 

Parts and service

111,285

 

103,369

 

7.7

 

Finance and insurance

57,218

 

44,240

 

29.3

   

Total 

$    260,424

 

$    221,775

 

17.4

               

UNITS SOLD:

         
 

Retail new vehicles sold

27,930

 

24,704

 

13.1

 

Retail used vehicles sold

20,749

 

16,730

 

24.0

 

Wholesale used vehicles sold

9,994

 

9,055

 

10.4

   

Total used

30,743

 

25,785

 

19.2

               

AVERAGE RETAIL SALES PRICE:

         
 

New vehicle retail

$      32,674

 

$      31,764

 

2.9

 

Used vehicle retail

$      20,000

 

$      19,334

 

3.4

               

GROSS PROFIT PER UNIT SOLD:

         
 

New vehicle retail sales

$        1,891

 

$        1,731

 

9.2

 

Used vehicle retail sales

1,754

 

1,727

 

1.6

 

Used vehicle wholesale sales

271

 

275

 

(1.5)

   

Total used

1,272

 

1,218

 

4.4

 

Finance and insurance (per retail unit)

$        1,175

 

$        1,068

 

10.0

               

OTHER:

           
 

SG&A expenses

$    199,112

 

$    175,884

 

13.2

 

SG&A as % revenues

12.0

 

12.5

   
 

SG&A as % gross profit

76.5

 

79.3

   
 

Operating margin % (1)

3.2

 

2.8

   
 

Pretax margin % (1)

2.2

 

1.8

   
               

FLOORPLAN EXPENSE:

         
 

Floorplan interest

$      (7,619)

 

$      (6,760)

 

12.7

 

Floorplan assistance

7,414

 

6,210

 

19.4

   

Net floorplan expense

$         (205)

 

$         (550)

 

(62.7)

               
 

(1)

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

 

 
 

Group 1 Automotive, Inc.

Additional Information - Same Store(1)

(Unaudited)

(Dollars in thousands, except per unit amounts)

               
     

Three Months Ended March 31,

     

2012

 

2011

 

% Change

REVENUES:

         
 

New vehicle retail sales

$    840,731

 

$    783,652

 

7.3

 

Used vehicle retail sales

385,501

 

323,044

 

19.3

 

Used vehicle wholesale sales

61,215

 

61,936

 

(1.2)

   

Total used

446,716

 

384,980

 

16.0

 

Parts and service

198,536

 

194,075

 

2.3

 

Finance and insurance

53,212

 

44,193

 

20.4

   

Total 

$ 1,539,195

 

$ 1,406,900

 

9.4

               

GROSS MARGIN %:

         
 

New vehicle retail sales

5.8

 

5.4

   
 

Used vehicle retail sales

8.7

 

8.9

   
 

Used vehicle wholesale sales

4.1

 

4.0

   
   

Total used

8.0

 

8.1

   
 

Parts and service

52.6

 

53.1

   
 

Finance and insurance

100.0

 

100.0

   
   

Total

15.7

 

15.7

   
               

GROSS PROFIT:

         
 

New vehicle retail sales

$      48,765

 

$      42,682

 

14.3

 

Used vehicle retail sales

33,405

 

28,853

 

15.8

 

Used vehicle wholesale sales

2,485

 

2,491

 

(0.2)

   

Total used

35,890

 

31,344

 

14.5

 

Parts and service

104,350

 

103,099

 

1.2

 

Finance and insurance

53,212

 

44,193

 

20.4

   

Total 

$    242,217

 

$    221,318

 

9.4

               

UNITS SOLD:

         
 

Retail new vehicles sold

25,792

 

24,660

 

4.6

 

Retail used vehicles sold

19,280

 

16,705

 

15.4

 

Wholesale used vehicles sold

9,213

 

9,051

 

1.8

   

Total used

28,493

 

25,756

 

10.6

               

AVERAGE RETAIL SALES PRICE:

         
 

New vehicle retail

$      32,597

 

$      31,779

 

2.6

 

Used vehicle retail

$      19,995

 

$      19,338

 

3.4

               

GROSS PROFIT PER UNIT SOLD:

         
 

New vehicle retail sales

$        1,891

 

$        1,731

 

9.2

 

Used vehicle retail sales

1,733

 

1,727

 

0.3

 

Used vehicle wholesale sales

270

 

275

 

(1.8)

   

Total used

1,260

 

1,217

 

3.5

 

Finance and insurance (per retail unit)

$        1,181

 

$        1,068

 

10.6

               

OTHER:

           
 

SG&A expenses

$    185,277

 

$    175,511

 

5.6

 

SG&A as % revenues

12.0

 

12.5

   
 

SG&A as % gross profit

76.5

 

79.3

   
 

Operating margin %(2)

3.2

 

2.8

   
               

FLOORPLAN EXPENSE:

         
 

Floorplan interest

$      (7,002)

 

$      (6,751)

 

3.7

 

Floorplan assistance

6,646

 

6,200

 

7.2

   

Net floorplan expense

$         (356)

 

$         (551)

 

(35.4)

               
 

(1)

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

(2)

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

 

 
 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures

(Unaudited)

 (Dollars in thousands, except per share amounts)

                 
                 
       

Three Months Ended March 31,

NET INCOME RECONCILIATION:

2012

 

2011

 

% Change

                 
 

As reported

$  23,117

 

$  15,362

 

50.5

 

  After-tax Adjustments:

         
   

Non-cash asset impairment charges(2)

-

 

140

   
     

Adjusted net income (1)

$  23,117

 

$  15,502

 

49.1

         

ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED

         

COMMON SHARES RECONCILIATION:

         
                 
 

Adjusted net income

$  23,117

 

$  15,502

 

49.1

 

Less: Adjusted earnings allocated to participating securities

1,165

 

920

 

26.6

 

Adjusted net income available to diluted common shares

$  21,952

 

$  14,582

 

50.5

                 

DILUTED INCOME PER COMMON SHARE RECONCILIATION:

         
                 
 

As reported

$     0.97

 

$     0.64

 

51.6

 

  After-tax Adjustments:

         
   

Non-cash asset impairment charges

-

 

-

   
     

Adjusted diluted income per share (1)

$     0.97

 

$     0.64

 

51.6

                 

OPERATING MARGIN %:

         
                 
 

Unadjusted

3.2

 

2.8

   
 

Adjusted (1), (3)

3.2

 

2.8

   
                 

PRETAX MARGIN %:

         
                 
 

Unadjusted

2.2

 

1.7

   
 

Adjusted (1), (3)

2.2

 

1.8

   
                 

SAME STORE OPERATING MARGIN %:

         
                 
 

Unadjusted

3.2

 

2.8

   
 

Adjusted (1), (4)

3.2

 

2.8

   
                 
       

Three Months Ended March 31,

CASH FLOWS FROM OPERATING ACTIVITIES

2012

 

2011

 

% Change

RECONCILIATION:

         
 

Net cash provided by (used in) operating activities

$   (9,450)

 

$  54,455

 

(117.4)

   

Change in floorplan notes payable-credit facility, excluding

   floorplan offset account and net acquisition and disposition

   related activity

72,363

 

(3,564)

   
   

Change in floorplan notes payable-manufacturer affiliates

   associated with net acquisition and disposition related activity

-

 

(4,158)

   
     

Adjusted net cash provided by operating activities(1)

$   62,913

 

$  46,733

 

34.6

                 
 

(1)

We believe that these adjusted financial measures are relevant and useful to investors because they provide additional information regarding the performance of our operations and improve period-to-period comparability. These measures are not measures of financial performance under GAAP.  Accordingly, they should not be considered as substitutes for their unadjusted counterparts, which are prepared in accordance with GAAP.  Although we find these non-GAAP results useful in evaluating the performance of our business, our reliance on these measures is limited because the adjustments often have a material impact on our financial statements calculated in accordance with GAAP.  Therefore, we typically use these adjusted numbers in conjunction with our GAAP results to address these limitations.

(2)

Adjustment is net of tax benefit of $82 for the three months ended March 31, 2011 and is calculated utilizing the applicable federal and state tax rates for the adjustment.

(3)

Excludes the impact of non-cash asset impairment charges.

(4)

Excludes the impact of Same Store non-cash asset impairment charges of $178 for the three months ended March 31, 2011. Adjusted Same Store operating income was $39,387 for the three months ended March 31, 2011.

 

SOURCE Group 1 Automotive, Inc.