HOUSTON, July 26, 2012 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), a Fortune 500 automotive retailer, today reported record 2012 second-quarter adjusted net income of $29.7 million, a 20.1 percent increase from the prior-year period, and record adjusted diluted earnings per common share of $1.25 for the period ended June 30, 2012. As shown in the attached reconciliation table, the company recognized a $1.1 million net after-tax adjustment for insurance deductibles associated with property damage from a major hailstorm, and a non-cash asset impairment charge, partially offset by a net gain on real estate transactions in the quarter ended June 30, 2012. Before adjusting for these items, reported net income was $28.6 million and diluted earnings per common share were $1.20.
Year-to-date 2012 adjusted net income increased 31.3 percent, to a record $52.9 million. Adjusted diluted earnings per common share were $2.23, making this the best first six-month results in the company's history.
"Group 1's record-setting second-quarter performance was driven by strong same-store revenue growth in our new and used retail segments and another record-setting quarter in finance and insurance," said Earl J. Hesterberg, Group 1's president and chief executive officer. "Even with the impact of a major hailstorm that severely damaged about 2,200 units at seven of Group 1's Oklahoma dealerships during the quarter, we outpaced the industry unit sales rate and further improved our expense leverage."
Record-Setting Second-Quarter 2012 Highlights
Share Repurchases
As announced on July 11, Group 1 repurchased 241,991 shares of its common stock at an average price of $46.75 during the second quarter. Additionally, it was announced that the board authorized a new $50 million common share repurchase program that replaced the $5.4 million remaining at June 30 under the prior authorization.
Corporate Development Recap
During the second quarter, Group 1 acquired six Audi franchises in the United Kingdom and two Volkswagen and one Honda franchise in Florida. In total, these nine franchises are estimated to generate $361.0 million in annual revenues.
Year to date, Group 1 has acquired 12 franchises that are expected to generate $504.5 million in annual revenues.
Second-Quarter Earnings Conference Call
Group 1's senior management will host a conference call today at 10 a.m. ET to discuss the second-quarter financial results and the company's outlook and strategy.
The conference call will be simulcast live on the Internet at www.group1auto.com, then click on 'Investor Relations' and then 'Events' or through this link: http://www.group1corp.com/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: 10015858
A telephonic replay will be available following the call through Aug. 2 at 9 a.m. ET by dialing:
Domestic: 1.877.344.7529
International: 1.412.317.0088
Conference ID: 10015858
About Group 1 Automotive, Inc.
Group 1 owns and operates 122 automotive dealerships, 159 franchises, and 28 collision centers in the United States and the United Kingdom that offer 32 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 June 30, |
Six Months Ended June 30, |
|||||||||||||||
2012 |
2011 |
% Change |
2012 |
2011 |
% Change |
|||||||||||
REVENUES: |
||||||||||||||||
New vehicle retail sales |
$ 1,080,710 |
$ 809,881 |
33.4 |
$ 1,993,305 |
$ 1,594,595 |
25.0 |
||||||||||
Used vehicle retail sales |
456,234 |
353,047 |
29.2 |
871,208 |
676,494 |
28.8 |
||||||||||
Used vehicle wholesale sales |
73,134 |
60,607 |
20.7 |
139,991 |
122,558 |
14.2 |
||||||||||
Parts and service |
220,313 |
204,091 |
7.9 |
433,414 |
399,041 |
8.6 |
||||||||||
Finance and insurance |
65,435 |
46,519 |
40.7 |
122,653 |
90,759 |
35.1 |
||||||||||
Total revenues |
1,895,826 |
1,474,145 |
28.6 |
3,560,571 |
2,883,447 |
23.5 |
||||||||||
COST OF SALES: |
||||||||||||||||
New vehicle retail sales |
1,016,868 |
755,617 |
34.6 |
1,876,643 |
1,497,559 |
25.3 |
||||||||||
Used vehicle retail sales |
417,388 |
318,499 |
31.0 |
795,965 |
613,046 |
29.8 |
||||||||||
Used vehicle wholesale sales |
72,811 |
58,940 |
23.5 |
136,964 |
118,397 |
15.7 |
||||||||||
Parts and service |
103,415 |
96,878 |
6.7 |
205,231 |
188,459 |
8.9 |
||||||||||
Total cost of sales |
1,610,482 |
1,229,934 |
30.9 |
3,014,803 |
2,417,461 |
24.7 |
||||||||||
GROSS PROFIT |
285,344 |
244,211 |
16.8 |
545,768 |
465,986 |
17.1 |
||||||||||
SELLING, GENERAL AND |
||||||||||||||||
ADMINISTRATIVE EXPENSES |
214,327 |
183,051 |
17.1 |
413,439 |
358,935 |
15.2 |
||||||||||
DEPRECIATION AND |
||||||||||||||||
AMORTIZATION EXPENSE |
7,742 |
6,581 |
17.6 |
14,978 |
13,036 |
14.9 |
||||||||||
ASSET IMPAIRMENTS |
187 |
142 |
31.7 |
288 |
364 |
(20.9) |
||||||||||
OPERATING INCOME |
63,088 |
54,437 |
15.9 |
117,063 |
93,651 |
25.0 |
||||||||||
OTHER EXPENSE: |
||||||||||||||||
Floorplan interest expense |
(7,863) |
(6,521) |
20.6 |
(15,482) |
(13,281) |
16.6 |
||||||||||
Other interest expense, net |
(9,190) |
(8,225) |
11.7 |
(18,230) |
(16,167) |
12.8 |
||||||||||
INCOME BEFORE INCOME TAXES |
46,035 |
39,691 |
16.0 |
83,351 |
64,203 |
29.8 |
||||||||||
PROVISION FOR INCOME TAXES |
(17,410) |
(15,008) |
16.0 |
(31,609) |
(24,158) |
30.8 |
||||||||||
NET INCOME |
$ 28,625 |
$ 24,683 |
16.0 |
$ 51,742 |
$ 40,045 |
29.2 |
||||||||||
DILUTED INCOME PER SHARE |
$ 1.20 |
$ 1.03 |
16.5 |
$ 2.18 |
$ 1.66 |
31.3 |
||||||||||
Weighted average dilutive common shares outstanding |
22,513 |
22,651 |
(0.6) |
22,522 |
22,693 |
(0.8) |
||||||||||
Weighted average participating securities |
1,317 |
1,393 |
(5.5) |
1,263 |
1,393 |
(9.3) |
||||||||||
Total weighted average shares outstanding |
23,830 |
24,044 |
(0.9) |
23,785 |
24,086 |
(1.2) |
Group 1 Automotive, Inc. |
|||||||
Consolidated Balance Sheets |
|||||||
(Dollars in thousands) |
|||||||
June 30, |
December 31, |
||||||
2012 |
2011 |
% Change |
|||||
ASSETS: |
(Unaudited) |
||||||
CURRENT ASSETS: |
|||||||
Cash and cash equivalents |
$ 9,544 |
$ 14,895 |
(35.9) |
||||
Contracts in transit and vehicle receivables, net |
150,978 |
167,507 |
(9.9) |
||||
Accounts and notes receivable, net |
114,361 |
92,775 |
23.3 |
||||
Inventories, net |
1,071,927 |
867,470 |
23.6 |
||||
Deferred income taxes |
18,147 |
16,012 |
13.3 |
||||
Prepaid expenses and other current assets |
20,154 |
16,925 |
19.1 |
||||
Total current assets |
1,385,111 |
1,175,584 |
17.8 |
||||
PROPERTY AND EQUIPMENT, net |
638,971 |
585,633 |
9.1 |
||||
GOODWILL AND INTANGIBLE FRANCHISE RIGHTS |
758,716 |
702,145 |
8.1 |
||||
OTHER ASSETS |
12,459 |
12,981 |
(4.0) |
||||
Total assets |
$ 2,795,257 |
$ 2,476,343 |
12.9 |
||||
LIABILITIES AND STOCKHOLDERS' EQUITY: |
|||||||
CURRENT LIABILITIES: |
|||||||
Floorplan notes payable - credit facility |
$ 886,237 |
$ 718,945 |
23.3 |
||||
Offset account related to floorplan notes payable - credit facility |
(101,760) |
(109,207) |
(6.8) |
||||
Floorplan notes payable - manufacturer affiliates |
174,783 |
155,980 |
12.1 |
||||
Current maturities of long-term debt and short-term financing |
25,184 |
14,663 |
71.8 |
||||
Current liabilities from interest rate risk management activities |
2,119 |
7,273 |
(70.9) |
||||
Accounts payable |
166,127 |
148,048 |
12.2 |
||||
Accrued expenses |
117,625 |
109,245 |
7.7 |
||||
Total current liabilities |
1,270,315 |
1,044,947 |
21.6 |
||||
2.25% CONVERTIBLE SENIOR NOTES (aggregate principal of |
|||||||
$182,753 at June 30, 2012 and December 31, 2011) |
148,603 |
144,985 |
2.5 |
||||
3.00% CONVERTIBLE SENIOR NOTES (aggregate principal of |
|||||||
$115,000 at June 30, 2012 and December 31, 2011) |
79,018 |
77,401 |
2.1 |
||||
MORTGAGE FACILITY, net of current maturities |
54,984 |
38,873 |
41.4 |
||||
OTHER REAL ESTATE RELATED AND LONG-TERM DEBT, |
|||||||
net of current maturities |
199,387 |
184,237 |
8.2 |
||||
CAPITAL LEASE OBLIGATIONS RELATED TO REAL ESTATE, |
|||||||
net of current maturities |
34,978 |
37,105 |
(5.7) |
||||
DEFERRED INCOME TAXES |
83,295 |
78,459 |
6.2 |
||||
LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES |
38,201 |
26,766 |
42.7 |
||||
OTHER LIABILITIES |
40,702 |
36,470 |
11.6 |
||||
COMMITMENTS AND CONTINGENCIES |
|||||||
STOCKHOLDERS' EQUITY: |
|||||||
Common stock |
261 |
260 |
0.4 |
||||
Additional paid-in capital |
368,069 |
363,375 |
1.3 |
||||
Retained earnings |
636,182 |
591,037 |
7.6 |
||||
Accumulated other comprehensive loss |
(33,160) |
(29,236) |
13.4 |
||||
Treasury stock |
(125,578) |
(118,336) |
6.1 |
||||
Total stockholders' equity |
845,774 |
807,100 |
4.8 |
||||
Total liabilities and stockholders' equity |
$ 2,795,257 |
$ 2,476,343 |
12.9 |
||||
KEY DEBT COVENANT METRICS: |
|||||||
Senior secured adjusted ratio (must be less than 3.75) |
2.36 |
2.46 |
|||||
Total leverage ratio (must be less than 5.50) |
3.44 |
3.65 |
|||||
Fixed charge coverage ratio (must be greater than 1.35) |
1.97 |
1.94 |
Group 1 Automotive, Inc. |
||||||||||||
Consolidated Statements of Adjusted Cash Flows from Operating Activities |
||||||||||||
(Unaudited) |
||||||||||||
(In thousands) |
||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||
2012 |
2011 |
% Change |
2012 |
2011 |
% Change |
|||||||
Net income |
$ 28,625 |
$ 24,683 |
16.0 |
$ 51,742 |
$ 40,045 |
29.2 |
||||||
Adjustments to reconcile net income to net cash provided by |
||||||||||||
operating activities: |
||||||||||||
Asset impairments |
187 |
142 |
31.7 |
288 |
364 |
(20.9) |
||||||
Depreciation and amortization |
7,742 |
6,581 |
17.6 |
14,978 |
13,036 |
14.9 |
||||||
Deferred income taxes |
3,012 |
7,062 |
(57.3) |
6,075 |
14,110 |
(56.9) |
||||||
Gain on disposition of assets and franchise |
(1,580) |
(786) |
101.0 |
(1,588) |
(786) |
102.0 |
||||||
Stock-based compensation |
3,021 |
2,814 |
7.4 |
5,915 |
5,558 |
6.4 |
||||||
Amortization of debt discount and issue costs |
3,218 |
2,970 |
8.4 |
6,388 |
5,848 |
9.2 |
||||||
Other |
128 |
71 |
80.3 |
57 |
(102) |
155.9 |
||||||
Changes in operating assets and liabilities, net of effects of |
||||||||||||
acquisitions and dispositions: |
||||||||||||
Accounts payable and accrued expenses |
9,785 |
14,453 |
(32.3) |
17,623 |
24,890 |
(29.2) |
||||||
Accounts and notes receivable |
(21,859) |
(3,315) |
559.4 |
(14,720) |
3,963 |
(471.4) |
||||||
Inventories |
(75,482) |
47,067 |
(260.4) |
(160,082) |
52,803 |
(403.2) |
||||||
Contracts-in-transit and vehicle receivables |
5,825 |
11,750 |
(50.4) |
23,871 |
8,127 |
193.7 |
||||||
Prepaid expenses and other assets |
1,763 |
(374) |
571.4 |
6,215 |
1,022 |
508.1 |
||||||
Floorplan notes payable - credit facility (1) |
79,218 |
(69,722) |
213.6 |
151,581 |
(73,286) |
306.8 |
||||||
Floorplan notes payable - manufacturer affiliates (2) |
(1,423) |
10,829 |
(113.1) |
(3,077) |
5,866 |
(152.5) |
||||||
Deferred revenues |
767 |
(447) |
271.6 |
594 |
(948) |
162.7 |
||||||
Adjusted net cash provided by operating activities |
$ 42,947 |
$ 53,778 |
(20.1) |
$ 105,860 |
$ 100,510 |
5.3 |
||||||
(1) |
Excludes net acquisition/(disposition) related activity of $6,043 and $17,926 for the three months ended June 30, 2012 and 2011, respectively. Excludes net acquisition/(disposition) related activity of $15,712 and $20,476 for the six months ended June 30, 2012, and 2011, respectively. |
|||||||||||
(2) |
Excludes net acquisition/(disposition) related activity of $22,419 for the three months ended June 31, 2011 and $26,578 for the six months ended June 30, 2011. |
Group 1 Automotive, Inc. |
|||||||||
Additional Information - Consolidated |
|||||||||
(Unaudited) |
|||||||||
Three Months Ended |
Six Months Ended |
||||||||
June 30, |
June 30, |
||||||||
2012 (%) |
2011 (%) |
2012 (%) |
2011 (%) |
||||||
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX: |
|||||||||
Region |
Geographic Market |
||||||||
East |
Massachusetts |
9.7 |
11.2 |
10.2 |
12.0 |
||||
New Jersey |
5.1 |
5.9 |
5.1 |
5.9 |
|||||
Georgia |
3.4 |
3.2 |
3.4 |
3.6 |
|||||
New York |
3.2 |
4.3 |
3.3 |
3.8 |
|||||
New Hampshire |
3.0 |
3.0 |
2.9 |
3.2 |
|||||
Louisiana |
2.5 |
3.0 |
2.6 |
3.1 |
|||||
Mississippi |
2.1 |
1.9 |
2.1 |
2.0 |
|||||
South Carolina |
1.9 |
1.2 |
1.8 |
1.4 |
|||||
Florida |
1.2 |
0.8 |
1.0 |
0.7 |
|||||
Alabama |
1.0 |
1.1 |
1.0 |
1.2 |
|||||
Maryland |
0.6 |
1.0 |
0.7 |
0.8 |
|||||
33.7 |
36.6 |
34.1 |
37.7 |
||||||
West |
Texas |
36.0 |
34.6 |
36.8 |
33.3 |
||||
California |
14.4 |
13.9 |
14.5 |
14.6 |
|||||
Oklahoma |
7.8 |
8.2 |
7.8 |
8.1 |
|||||
Kansas |
1.6 |
1.1 |
1.4 |
1.0 |
|||||
59.8 |
57.8 |
60.5 |
57.0 |
||||||
International |
United Kingdom |
6.5 |
5.6 |
5.4 |
5.3 |
||||
100.0 |
100.0 |
100.0 |
100.0 |
||||||
NEW VEHICLE UNIT SALES BRAND MIX: |
|||||||||
Toyota/Scion/Lexus |
31.2 |
28.5 |
30.9 |
31.5 |
|||||
Honda/Acura |
11.4 |
11.3 |
11.2 |
12.1 |
|||||
BMW/MINI |
11.3 |
14.9 |
11.0 |
13.3 |
|||||
Nissan/Infiniti |
10.8 |
12.7 |
11.8 |
13.4 |
|||||
Ford |
8.8 |
8.3 |
9.5 |
7.7 |
|||||
Volkswagen/Audi/Porsche |
6.6 |
3.1 |
5.4 |
2.4 |
|||||
GM |
5.8 |
5.0 |
6.0 |
4.8 |
|||||
Daimler |
4.8 |
6.4 |
4.7 |
5.8 |
|||||
Chrysler |
4.4 |
4.7 |
4.4 |
4.1 |
|||||
Other |
4.9 |
5.1 |
5.1 |
4.9 |
|||||
100.0 |
100.0 |
100.0 |
100.0 |
||||||
NEW VEHICLE UNIT SALES OTHER MIX: |
|||||||||
Import |
54.7 |
52.2 |
55.2 |
55.5 |
|||||
Luxury |
27.1 |
30.0 |
25.7 |
28.0 |
|||||
Domestic |
18.2 |
17.8 |
19.1 |
16.5 |
|||||
100.0 |
100.0 |
100.0 |
100.0 |
||||||
Car |
57.4 |
55.9 |
56.7 |
56.0 |
|||||
Truck |
42.6 |
44.1 |
43.3 |
44.0 |
|||||
100.0 |
100.0 |
100.0 |
100.0 |
Group 1 Automotive, Inc. |
|||||||||||||
Additional Information - Consolidated |
|||||||||||||
(Unaudited) |
|||||||||||||
(Dollars in thousands, except per unit amounts) |
|||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||
2012 |
2011 |
% Change |
2012 |
2011 |
% Change |
||||||||
REVENUES: |
|||||||||||||
New vehicle retail sales |
$ 1,080,710 |
$ 809,881 |
33.4 |
$ 1,993,305 |
$ 1,594,595 |
25.0 |
|||||||
Used vehicle retail sales |
456,234 |
353,047 |
29.2 |
871,208 |
676,494 |
28.8 |
|||||||
Used vehicle wholesale sales |
73,134 |
60,607 |
20.7 |
139,991 |
122,558 |
14.2 |
|||||||
Total used |
529,368 |
413,654 |
28.0 |
1,011,199 |
799,052 |
26.5 |
|||||||
Parts and service |
220,313 |
204,091 |
7.9 |
433,414 |
399,041 |
8.6 |
|||||||
Finance and insurance |
65,435 |
46,519 |
40.7 |
122,653 |
90,759 |
35.1 |
|||||||
Total |
$ 1,895,826 |
$ 1,474,145 |
28.6 |
$ 3,560,571 |
$ 2,883,447 |
23.5 |
|||||||
GROSS MARGIN %: |
|||||||||||||
New vehicle retail sales |
5.9 |
6.7 |
5.9 |
6.1 |
|||||||||
Used vehicle retail sales |
8.5 |
9.8 |
8.6 |
9.4 |
|||||||||
Used vehicle wholesale sales |
0.4 |
2.8 |
2.2 |
3.4 |
|||||||||
Total used |
7.4 |
8.8 |
7.7 |
8.5 |
|||||||||
Parts and service |
53.1 |
52.5 |
52.6 |
52.8 |
|||||||||
Finance and insurance |
100.0 |
100.0 |
100.0 |
100.0 |
|||||||||
Total |
15.1 |
16.6 |
15.3 |
16.2 |
|||||||||
GROSS PROFIT: |
|||||||||||||
New vehicle retail sales |
$ 63,842 |
$ 54,264 |
17.7 |
$ 116,662 |
$ 97,036 |
20.2 |
|||||||
Used vehicle retail sales |
38,846 |
34,548 |
12.4 |
75,243 |
63,448 |
18.6 |
|||||||
Used vehicle wholesale sales |
323 |
1,667 |
(80.6) |
3,027 |
4,161 |
(27.3) |
|||||||
Total used |
39,169 |
36,215 |
8.2 |
78,270 |
67,609 |
15.8 |
|||||||
Parts and service |
116,898 |
107,213 |
9.0 |
228,183 |
210,582 |
8.4 |
|||||||
Finance and insurance |
65,435 |
46,519 |
40.7 |
122,653 |
90,759 |
35.1 |
|||||||
Total |
$ 285,344 |
$ 244,211 |
16.8 |
$ 545,768 |
$ 465,986 |
17.1 |
|||||||
UNITS SOLD: |
|||||||||||||
Retail new vehicles sold |
32,924 |
24,097 |
36.6 |
60,854 |
48,801 |
24.7 |
|||||||
Retail used vehicles sold |
22,004 |
17,200 |
27.9 |
42,753 |
33,930 |
26.0 |
|||||||
Wholesale used vehicles sold |
11,244 |
8,494 |
32.4 |
21,238 |
17,549 |
21.0 |
|||||||
Total used |
33,248 |
25,694 |
29.4 |
63,991 |
51,479 |
24.3 |
|||||||
AVERAGE RETAIL SALES PRICE: |
|||||||||||||
New vehicle retail |
$ 32,824 |
$ 33,609 |
(2.3) |
$ 32,756 |
$ 32,676 |
0.2 |
|||||||
Used vehicle retail |
$ 20,734 |
$ 20,526 |
1.0 |
$ 20,378 |
$ 19,938 |
2.2 |
|||||||
GROSS PROFIT PER UNIT SOLD: |
|||||||||||||
New vehicle retail sales |
$ 1,939 |
$ 2,252 |
(13.9) |
$ 1,917 |
$ 1,988 |
(3.6) |
|||||||
Used vehicle retail sales |
1,765 |
2,009 |
(12.1) |
1,760 |
1,870 |
(5.9) |
|||||||
Used vehicle wholesale sales |
29 |
196 |
(85.2) |
143 |
237 |
(39.7) |
|||||||
Total used |
1,178 |
1,409 |
(16.4) |
1,223 |
1,313 |
(6.9) |
|||||||
Finance and insurance (per retail unit) |
$ 1,191 |
$ 1,126 |
5.8 |
$ 1,184 |
$ 1,097 |
7.9 |
|||||||
OTHER: (1) |
|||||||||||||
SG&A expenses |
$ 212,748 |
$ 183,051 |
16.2 |
$ 411,860 |
$ 358,935 |
14.7 |
|||||||
SG&A as % revenues |
11.2 |
12.4 |
11.6 |
12.4 |
|||||||||
SG&A as % gross profit |
74.6 |
75.0 |
75.5 |
77.0 |
|||||||||
Operating margin % |
3.4 |
3.7 |
3.3 |
3.3 |
|||||||||
Pretax margin % |
2.5 |
2.7 |
2.4 |
2.2 |
|||||||||
FLOORPLAN EXPENSE: |
|||||||||||||
Floorplan interest |
$ (7,863) |
$ (6,521) |
20.6 |
$ (15,482) |
$ (13,281) |
16.6 |
|||||||
Floorplan assistance |
8,658 |
5,886 |
47.1 |
16,072 |
12,096 |
32.9 |
|||||||
Net floorplan income (expense) |
$ 795 |
$ (635) |
225.2 |
$ 590 |
$ (1,185) |
149.8 |
|||||||
(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 June 30, |
Six Months Ended June 30, |
||||||||||||
2012 |
2011 |
% Change |
2012 |
2011 |
% Change |
||||||||
REVENUES: |
|||||||||||||
New vehicle retail sales |
$ 979,317 |
$ 806,141 |
21.5 |
$ 1,820,048 |
$ 1,589,794 |
14.5 |
|||||||
Used vehicle retail sales |
417,810 |
351,653 |
18.8 |
803,310 |
674,697 |
19.1 |
|||||||
Used vehicle wholesale sales |
63,212 |
60,542 |
4.4 |
124,427 |
122,478 |
1.6 |
|||||||
Total used |
481,022 |
412,195 |
16.7 |
927,737 |
797,175 |
16.4 |
|||||||
Parts and service |
206,171 |
203,592 |
1.3 |
404,708 |
397,666 |
1.8 |
|||||||
Finance and insurance |
60,563 |
46,293 |
30.8 |
113,775 |
90,486 |
25.7 |
|||||||
Total |
$ 1,727,073 |
$ 1,468,221 |
17.6 |
$ 3,266,268 |
$ 2,875,121 |
13.6 |
|||||||
GROSS MARGIN %: |
|||||||||||||
New vehicle retail sales |
5.8 |
6.7 |
5.8 |
6.1 |
|||||||||
Used vehicle retail sales |
8.5 |
9.8 |
8.6 |
9.4 |
|||||||||
Used vehicle wholesale sales |
0.7 |
2.7 |
2.3 |
3.4 |
|||||||||
Total used |
7.5 |
8.7 |
7.7 |
8.4 |
|||||||||
Parts and service |
52.8 |
52.6 |
52.7 |
52.8 |
|||||||||
Finance and insurance |
100.0 |
100.0 |
100.0 |
100.0 |
|||||||||
Total |
15.2 |
16.6 |
15.5 |
16.2 |
|||||||||
GROSS PROFIT: |
|||||||||||||
New vehicle retail sales |
$ 57,204 |
$ 54,018 |
5.9 |
$ 105,967 |
$ 96,699 |
9.6 |
|||||||
Used vehicle retail sales |
35,545 |
34,327 |
3.5 |
68,949 |
63,179 |
9.1 |
|||||||
Used vehicle wholesale sales |
411 |
1,652 |
(75.1) |
2,898 |
4,144 |
(30.1) |
|||||||
Total used |
35,956 |
35,979 |
(0.1) |
71,847 |
67,323 |
6.7 |
|||||||
Parts and service |
108,887 |
106,997 |
1.8 |
213,237 |
210,097 |
1.5 |
|||||||
Finance and insurance |
60,563 |
46,293 |
30.8 |
113,775 |
90,486 |
25.7 |
|||||||
Total |
$ 262,610 |
$ 243,287 |
7.9 |
$ 504,826 |
$ 464,605 |
8.7 |
|||||||
UNITS SOLD: |
|||||||||||||
Retail new vehicles sold |
29,899 |
23,977 |
24.7 |
55,691 |
48,637 |
14.5 |
|||||||
Retail used vehicles sold |
20,310 |
17,131 |
18.6 |
39,590 |
33,836 |
17.0 |
|||||||
Wholesale used vehicles sold |
9,949 |
8,484 |
17.3 |
19,162 |
17,535 |
9.3 |
|||||||
Total used |
30,259 |
25,615 |
18.1 |
58,752 |
51,371 |
14.4 |
|||||||
AVERAGE RETAIL SALES PRICE: |
|||||||||||||
New vehicle retail |
$ 32,754 |
$ 33,621 |
(2.6) |
$ 32,681 |
$ 32,687 |
(0.0) |
|||||||
Used vehicle retail |
$ 20,572 |
$ 20,528 |
0.2 |
$ 20,291 |
$ 19,940 |
1.8 |
|||||||
GROSS PROFIT PER UNIT SOLD: |
|||||||||||||
New vehicle retail sales |
$ 1,913 |
$ 2,253 |
(15.1) |
$ 1,903 |
$ 1,988 |
(4.3) |
|||||||
Used vehicle retail sales |
1,750 |
2,004 |
(12.7) |
1,742 |
1,867 |
(6.7) |
|||||||
Used vehicle wholesale sales |
41 |
195 |
(79.0) |
151 |
236 |
(36.0) |
|||||||
Total used |
1,188 |
1,405 |
(15.4) |
1,223 |
1,311 |
(6.7) |
|||||||
Finance and insurance (per retail unit) |
$ 1,206 |
$ 1,126 |
7.1 |
$ 1,194 |
$ 1,097 |
8.8 |
|||||||
OTHER: (2) |
|||||||||||||
SG&A expenses |
$ 194,490 |
$ 182,674 |
8.2 |
$ 379,767 |
$ 358,185 |
6.9 |
|||||||
SG&A as % revenues |
11.3 |
12.4 |
11.6 |
12.5 |
|||||||||
SG&A as % gross profit |
74.1 |
75.1 |
75.2 |
77.1 |
|||||||||
Operating margin % |
3.5 |
3.7 |
3.4 |
3.2 |
|||||||||
FLOORPLAN EXPENSE: |
|||||||||||||
Floorplan interest |
$ (7,177) |
$ (6,450) |
11.3 |
$ (14,178) |
$ (13,201) |
7.4 |
|||||||
Floorplan assistance |
7,827 |
5,866 |
33.4 |
14,473 |
12,066 |
19.9 |
|||||||
Net floorplan income (expense) |
$ 650 |
$ (584) |
211.3 |
$ 295 |
$ (1,135) |
126.0 |
|||||||
(1) |
Same store amounts include the results for the identical months in each period presented in the comparison, commencing with the first full month we owned the dealership and, in the case of dispositions, ending with the last full month we owned it. Same store results also include the activities of our corporate office. |
||||||||||||
(2) |
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 June 30, |
Six Months Ended June 30, |
|||||||||||||||||
NET INCOME RECONCILIATION: |
2012 |
2011 |
% Change |
2012 |
2011 |
% Change |
||||||||||||
As reported |
$ 28,625 |
$ 24,683 |
16.0 |
$ 51,742 |
$ 40,045 |
29.2 |
||||||||||||
After-tax Adjustments: |
||||||||||||||||||
Non-cash asset impairment charges(2) |
115 |
85 |
115 |
225 |
||||||||||||||
Net gain on real estate transactions(3) |
(659) |
- |
(659) |
- |
||||||||||||||
Insurance deductibles for hail storm damage (4) |
1,658 |
- |
1,658 |
- |
||||||||||||||
Adjusted net income (1) |
$ 29,739 |
$ 24,768 |
20.1 |
$ 52,856 |
$ 40,270 |
31.3 |
||||||||||||
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED |
||||||||||||||||||
COMMON SHARES RECONCILIATION: |
||||||||||||||||||
Adjusted net income |
$ 29,739 |
$ 24,768 |
20.1 |
$ 52,856 |
$ 40,270 |
31.3 |
||||||||||||
Less: Adjusted earnings allocated to participating securities |
1,637 |
1,424 |
15.0 |
2,789 |
2,310 |
20.7 |
||||||||||||
Adjusted net income available to diluted common shares |
$ 28,102 |
$ 23,344 |
20.4 |
$ 50,067 |
$ 37,960 |
31.9 |
||||||||||||
DILUTED INCOME PER COMMON SHARE RECONCILIATION: |
||||||||||||||||||
As reported |
$ 1.20 |
$ 1.03 |
16.5 |
$ 2.18 |
$ 1.66 |
31.3 |
||||||||||||
After-tax Adjustments: |
||||||||||||||||||
Non-cash asset impairment charges |
0.01 |
- |
0.01 |
0.01 |
||||||||||||||
Net gain on real estate transactions |
(0.03) |
- |
(0.03) |
- |
||||||||||||||
Insurance deductibles for hail storm damage |
0.07 |
- |
0.07 |
- |
||||||||||||||
Adjusted diluted income per share (1) |
$ 1.25 |
$ 1.03 |
21.4 |
$ 2.23 |
$ 1.67 |
33.5 |
||||||||||||
SG&A RECONCILIATION: |
||||||||||||||||||
As reported |
$ 214,327 |
$ 183,051 |
17.1 |
$ 413,439 |
$ 358,935 |
15.2 |
||||||||||||
Pre-tax Adjustments: |
||||||||||||||||||
Net gain on real estate transactions |
1,071 |
- |
1,071 |
- |
||||||||||||||
Insurance deductibles for hail storm damage |
(2,650) |
- |
(2,650) |
- |
||||||||||||||
Adjusted SG&A (1) |
$ 212,748 |
$ 183,051 |
16.2 |
$ 411,860 |
$ 358,935 |
14.7 |
||||||||||||
SG&A AS % REVENUES: |
||||||||||||||||||
Unadjusted |
11.3 |
12.4 |
11.6 |
12.4 |
||||||||||||||
Adjusted (1) |
11.2 |
12.4 |
11.6 |
12.4 |
||||||||||||||
SG&A AS % OF GROSS PROFIT: |
||||||||||||||||||
Unadjusted |
75.1 |
75.0 |
75.8 |
77.0 |
||||||||||||||
Adjusted (1) |
74.6 |
75.0 |
75.5 |
77.0 |
||||||||||||||
OPERATING MARGIN %: |
||||||||||||||||||
Unadjusted |
3.3 |
3.7 |
3.3 |
3.2 |
||||||||||||||
Adjusted (1), (5) |
3.4 |
3.7 |
3.3 |
3.3 |
||||||||||||||