• 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 All-Time Record Quarterly Profits

Revenues Increase 29 Percent

PR Newswire
HOUSTON

PR Newswire

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

  • Total revenues of $1.9 billion were a new any-quarter record high for the company – up 28.6 percent over prior year.
  • Total gross margin was 15.1 percent, as gross profit grew 16.8 percent from the prior year to an all-time record of $285.3 million.
  • New vehicle gross profit increased 17.7 percent on 33.4 percent higher revenues, as the company retailed 36.6 percent more units than in the prior-year period. Average vehicle selling price declined 2.3 percent, to $32,824.
  • Retail used vehicle unit sales surged 27.9 percent over the prior year, with the average selling price increasing 1.0 percent, to $20,734. Gross profit grew 12.4 percent on 29.2 percent higher revenues.
  • Parts and service revenues increased 7.9 percent from the prior year, reflecting continued growth in customer-pay, wholesale parts and collision sales.
  • Finance and insurance gross profit per retail unit increased $65 from the prior year, to a record $1,191.
  • Adjusted selling, general and administrative expenses as a percent of gross profit improved to 74.6 percent, compared with the prior-year period, and improved 190 basis points from the first quarter.
  • Adjusted operating margin was 3.4 percent, a 20 basis-point improvement from the first-quarter period.

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