HOUSTON, July 27, 2017 /PRNewswire/ -- Group 1
Automotive, Inc. (NYSE: GPI),("Group 1" or the
"Company"), an international, Fortune 500 automotive retailer,
today reported 2017 second quarter net income of $39.1 million, diluted earnings per common share
of $1.84, adjusted net income (a
non-GAAP measure) of $39.8 million,
and adjusted diluted earnings per common share (a non-GAAP measure)
of $1.87.
Second quarter 2017 adjusted net income and diluted earnings per
share exclude approximately $681
thousand of net after-tax adjustments, or $0.03 per share, related to catastrophic events
and acquisition costs. Reconciliations of non-GAAP financial
measures are included in the attached financial tables.
"While we had a strong quarter in Brazil, solid growth in aftersales revenue,
and a new record in U.S. F&I performance, these factors were
not enough to offset ongoing weakness in vehicle sales in our
energy-price-impacted markets. Combined new and used sales dropped
seven percent in the quarter for our Texas and Oklahoma stores," said Earl J. Hesterberg, Group 1's president and
chief executive officer. "Our single largest market of Houston was extremely volatile in the second
quarter with Houston total
industry auto sales dropping 24 percent in June after an increase
in May. Group 1's Houston sales
only decreased 12 percent in June, but this is indicative of the
headwinds we continue to face in much of Texas and Oklahoma. As for our overseas businesses, the
U.K. market did experience some deceleration as a result of the
increased road tax enacted in April, with the overall market
declining about 10 percent in the second quarter. However, we were
able to significantly outperform the market with our new vehicle
unit sales only contracting 1.4 percent and overall same store
revenue on a constant currency basis growing 2.5 percent. In
addition, Brazil delivered another
quarter of profitability, with gross profit up 18 percent on a
constant currency basis, reflecting double-digit growth in used,
aftersales, and F&I. The team has us well positioned for
further improvements as the Brazilian economy begins to
rebound."
Consolidated Results for Second Quarter 2017
(year-over-year comparable basis)
For ease of comparison, we have included constant currency
metrics (a non-GAAP measure) both below (shown in parenthesis) and
in the financial tables that follow:
- Total revenue decreased 4.0 percent (decreased 2.4 percent) to
$2.7 billion; total gross profit
decreased 1.3 percent (decreased 0.1 percent) to $404.9 million.
- New vehicle revenues decreased 6.0 percent (decreased 4.6
percent) on a 6.3 percent decrease in unit sales. New vehicle gross
profit decreased 7.7 percent (decreased 6.1 percent) to
$74.9 million. U.S. Same Store new
vehicle margins were down 1.0 percent, or $18 per unit, to $1,858.
- Retail used vehicle revenues decreased 4.2 percent (decreased
2.2 percent) on a 2.9 percent decrease in unit sales. Retail used
vehicle gross profit decreased 6.9 percent (decreased 5.5 percent)
to $44.9 million reflecting the
impact of lower margins, down $62 per
unit, in combination with the volume decline.
- Parts and service gross profit increased 3.3 percent (increased
4.5 percent) on revenue growth of 3.0 percent (increased 4.1
percent). Same Store parts and service gross profit increased 4.2
percent (increased 5.4 percent) on revenue growth of 4.2 percent
(increased 5.3 percent). U.S. Same Store parts & service
revenue increased 5.6 percent.
- Finance and Insurance (F&I) gross profit per retail unit
(PRU) increased 4.1 percent (increased 5.0 percent) to $1,461 per retail unit. U.S. F&I gross profit
per unit increased 5.4 percent, or $86, to a record $1,688.
- Selling, General and Administrative (SG&A) expenses as a
percent of gross profit increased 80 basis points to 73.7 percent.
Adjusted SG&A expenses as a percent of gross profit (a non-GAAP
measure) increased 130 basis points to 73.5 percent.
Segment Results for Second Quarter 2017 (year-over-year
comparable basis)
- United States:
The
Company's U.S. operations accounted for 79.5 percent of total
revenues and 84.1 percent of total gross profit. On a Same Store
basis, U.S. revenues were $2.1
billion, a decrease of 2.7 percent, and total Same Store
gross profit was essentially flat. The revenue decrease reflects
5.7 percent and 4.9 percent declines in Same Store retail new and
used unit sales, respectively. The vast majority of the sales
decline came from the Company's oil-impacted markets of
Texas and Oklahoma.
- United Kingdom:
The
Company's U.K. operations accounted for 16.4 percent of total
revenues and 12.6 percent of total gross profit. Although the
overall U.K. new vehicle industry sales decreased 10 percent in the
quarter, the Company's Same Store new vehicle unit sales
outperformed the market with only a slight decrease of 1.4 percent.
Total Same Store revenue grew 2.5 percent and total Same Store
gross profit grew 2.6 percent, both on a constant currency basis.
The gross profit growth was driven by a 4.2 percent increase in
aftersales gross profit on a constant currency basis, and a 7.5
percent increase in F&I per retail unit on a constant currency
basis.
- Brazil:
The
Company's Brazilian operations were profitable again this quarter
and accounted for 4.1 percent of total revenues and 3.3 percent of
total gross profit. Total Same Store revenue grew 10.8 percent
(increased 1.7 percent) and total Same Store gross profit increased
28.5 percent (increased 18.0 percent), reflecting strong growth in
Same Store total used vehicles gross profit of 46.9 percent
(increased 35.2 percent) and a 42.4 percent increase (increased
30.6 percent) in Same Store aftersales gross profit. In addition,
Same Store F&I gross profit PRU increased 43.5 percent
(increased 32.0 percent). SG&A as a percentage of gross profit
improved 440 basis points to 88.3 percent.
Corporate Development
The Company is pleased to announce it has acquired its first
Jaguar and Land Rover dealerships in the U.S., which are located in
Albuquerque and Santa Fe, New Mexico, and have projected
annualized revenues of $40 million.
The addition of these two stores expands the Company's global
network to seven Land Rover and seven Jaguar franchises. The
dealerships, which operate as Jaguar Land Rover Albuquerque and
Land Rover Santa Fe, are the only Jaguar and Land Rover dealerships
in the state of New Mexico, and
expand the Company's presence to 15 states in the U.S.
As previously announced in April, the Company opened Cedar Park
Nissan in Austin, Texas, which has
an expected annualized revenue of $30
million. This new point of representation for Nissan was
awarded to Group 1 by Nissan Motor Corporation U.S.A. Additionally, as previously announced
in July 2017, the Company acquired
Beadles Group Ltd in the U.K., which expands the dealership
footprint in the region to 43 stores. With expected annual revenues
of $330 million, the Beadles
acquisition increases the Company's projected U.K. annual revenue
base to over $2 billion.
Year-to-date 2017, the Company has acquired 16 dealerships,
which are expected to generate an estimated $435 million in annualized revenues, and the
Company has disposed of two dealerships in Brazil, which generated approximately
$25 million in trailing-twelve-month
revenues.
Share Repurchase Authorization
During the second quarter, the Company repurchased 629,298
shares, or approximately three percent of its previously
outstanding common shares, at an average price per common share of
$62.01 for a total of $39.0 million. As of June
30, 2017, $50.7 million
remains available under the Company's current common stock share
repurchase authorization, which was reset in May 2017.
Purchases may be made from time to time in the open market or in
privately negotiated transactions, based on market conditions,
legal requirements and other corporate considerations and subject
to Board approval and covenant restrictions.
Second Quarter 2017 Earnings Conference Call Details
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. Click on 'Investor Relations' and then 'Events'
or through this link: 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:
|
1935170
|
A telephonic replay will be available following the call through
August 3, 2017 by dialing:
Domestic:
|
1-877-344-7529
|
International:
|
1-412-317-0088
|
Replay ID:
|
10110617
|
About Group 1 Automotive, Inc.
Group 1 owns
and operates 173 automotive dealerships,
227 franchises, and 47 collision
centers in the United
States, the United
Kingdom and Brazil that offer 32 brands of
automobiles. Through its dealerships, the Company sells new and
used cars and light trucks; arranges related vehicle financing;
sells service contracts; provides automotive maintenance and repair
services; and sells vehicle parts.
Investors please visit www.group1corp.com,
www.group1auto.com,
www.group1collision.com,
www.facebook.com/group1auto, and
www.twitter.com/group1auto, where Group 1 discloses
additional information about the Company, its business, and its
results of operations.
FORWARD-LOOKING STATEMENTS
This press
release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995, which are
statements related to future, not past, events and are based on our
current expectations and assumptions regarding our business, the
economy and other future conditions. In this context, the
forward-looking statements often include statements regarding our
goals, plans, projections and guidance regarding our financial
position, results of operations, market position, pending and
potential future acquisitions and business strategy, and often
contain words such as "expects," "anticipates," "intends," "plans,"
"believes," "seeks," "should," "foresee," "may" or "will" and
similar expressions. While management believes that these
forward-looking statements are reasonable as and when made, there
can be no assurance that future developments affecting us will be
those that we anticipate. Any such forward-looking statements are
not assurances of future performance and involve risks and
uncertainties that may cause actual results to differ materially
from those set forth in the statements. These risks and
uncertainties include, among other things, (a) general economic and
business conditions, (b) the level of manufacturer incentives, (c)
the future regulatory environment, (d) our ability to obtain an
inventory of desirable new and used vehicles, (e) our relationship
with our automobile manufacturers and the willingness of
manufacturers to approve future acquisitions, (f) our cost of
financing and the availability of credit for consumers, (g) our
ability to complete acquisitions and dispositions and the risks
associated therewith, (h) foreign exchange controls and currency
fluctuations, and (i) our ability to retain key personnel. For
additional information regarding known material factors that could
cause our actual results to differ from our projected results,
please see our filings with the SEC, including our Annual Report on
Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on
Form 8-K. Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date hereof.
We undertake no obligation to publicly update or revise any
forward-looking statements after the date they are made, whether as
a result of new information, future events or otherwise.
NON-GAAP FINANCIAL MEASURES
In addition to evaluating the financial condition and results
of our operations in accordance with GAAP, from time to time our
management evaluates and analyzes results and any impact on the
Company of strategic decisions and actions relating to, among other
things, cost reduction, growth, and profitability improvement
initiatives, and other events outside of normal, or "core,"
business and operations, by considering alternative financial
measures not prepared in accordance with GAAP. This includes
evaluating measures such as adjusted selling, general and
administrative expenses, adjusted net income and adjusted diluted
earnings per share. These adjusted measures are not measures of
financial performance under U.S. GAAP, but are instead considered
non-GAAP financial performance measures. Non-GAAP measures do not
have definitions under GAAP and may be defined differently by and
not be comparable to similarly titled measures used by other
companies. As a result, any non-GAAP financial measures considered
and evaluated by management are reviewed in conjunction with a
review of the most directly comparable measures calculated in
accordance with GAAP. We caution investors not to place undue
reliance on such non-GAAP measures, but also to consider them with
the most directly comparable GAAP measures. In our evaluation of
results from time to time, we exclude items that do not arise
directly from core operations, such as non-cash asset impairment
charges, gains and losses on dealership franchise or real estate
transactions, and catastrophic weather events such as hail storms,
hurricanes, and snow storms. Because these non-core charges and
gains materially affect the Company's financial condition or
results in the specific period in which they are recognized,
management also evaluates, and makes resource allocation and
performance evaluation decisions based on, the related non-GAAP
measures excluding such items.
In addition to using such non-GAAP measures to evaluate
results in a specific period, management believes that such
measures may provide more complete and consistent comparisons of
operational performance on a period-over-period historical basis
and a better indication of expected future trends. Our management
also uses these adjusted measures in conjunction with U.S. GAAP
financial measures to assess our business, including communication
with our Board of Directors, investors and industry analysts
concerning financial performance. We disclose these non-GAAP
measures, and the related reconciliations, because we believe
investors use these metrics in evaluating longer-term
period-over-period performance, and to allow investors to better
understand and evaluate the information used by management to
assess operating performance. The exclusion of certain expenses in
the calculation of non-GAAP financial measures should not be
construed as an inference that these costs are unusual or
infrequent. We anticipate excluding these expenses in the future
presentation of our non-GAAP financial measures.
In addition, we evaluate our results of operations on both an
as reported and a constant currency basis. The constant currency
presentation, which is a non-GAAP measure, excludes the impact of
fluctuations in foreign currency exchange rates. We believe
providing constant currency information provides valuable
supplemental information regarding our underlying business and
results of operations, consistent with how we evaluate our
performance. We calculate constant currency percentages by
converting our current period reported results for entities
reporting in currencies other than United
States dollars using comparative period exchange rates
rather than the actual exchange rates in effect during the
respective periods. The constant currency performance measures
should not be considered a substitute for, or superior to, the
measures of financial performance prepared in accordance with U.S.
GAAP.
Investor contacts:
Sheila
Roth
Manager, Investor Relations
Group 1 Automotive, Inc.
713-647-5741 | sroth@group1auto.com
Media contacts:
Pete
DeLongchamps
V.P. Manufacturer Relations, Financial Services and Public
Affairs
Group 1 Automotive, Inc.
713-647-5770 | pdelongchamps@group1auto.com
or
Clint Woods
Pierpont Communications, Inc.
713-627-2223 | cwoods@piercom.com
Group 1
Automotive, Inc.
|
Consolidated
Statements of Operations
|
(Unaudited)
|
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
Three Months
Ended June 30,
|
|
2017
|
|
2016
|
|
% Increase/
(Decrease)
|
REVENUES:
|
|
|
|
|
|
New vehicle retail
sales
|
$
1,448,768
|
|
$
1,540,759
|
|
(6.0)
|
Used vehicle retail
sales
|
685,949
|
|
715,778
|
|
(4.2)
|
Used vehicle
wholesale sales
|
99,377
|
|
96,279
|
|
3.2
|
Parts and
service
|
331,631
|
|
322,073
|
|
3.0
|
Finance, insurance
and other, net
|
106,470
|
|
107,560
|
|
(1.0)
|
Total
revenues
|
2,672,195
|
|
2,782,449
|
|
(4.0)
|
|
|
|
|
|
|
COST OF
SALES:
|
|
|
|
|
|
New vehicle retail
sales
|
1,373,857
|
|
1,459,611
|
|
(5.9)
|
Used vehicle retail
sales
|
641,036
|
|
667,513
|
|
(4.0)
|
Used vehicle
wholesale sales
|
99,644
|
|
96,331
|
|
3.4
|
Parts and
service
|
152,766
|
|
148,875
|
|
2.6
|
Total cost of
sales
|
2,267,303
|
|
2,372,330
|
|
(4.4)
|
|
|
|
|
|
|
GROSS
PROFIT
|
404,892
|
|
410,119
|
|
(1.3)
|
|
|
|
|
|
|
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES
|
298,568
|
|
299,022
|
|
(0.2)
|
|
|
|
|
|
|
DEPRECIATION AND
AMORTIZATION EXPENSE
|
14,093
|
|
12,713
|
|
10.9
|
|
|
|
|
|
|
ASSET
IMPAIRMENTS
|
-
|
|
1,024
|
|
(100.0)
|
|
|
|
|
|
|
OPERATING
INCOME
|
92,231
|
|
97,360
|
|
(5.3)
|
|
|
|
|
|
|
OTHER
EXPENSE:
|
|
|
|
|
|
Floorplan interest
expense
|
(13,226)
|
|
(11,593)
|
|
14.1
|
Other interest
expense, net
|
(17,315)
|
|
(16,705)
|
|
3.7
|
INCOME BEFORE
INCOME TAXES
|
61,690
|
|
69,062
|
|
(10.7)
|
|
|
|
|
|
|
PROVISION FOR INCOME
TAXES
|
(22,557)
|
|
(22,482)
|
|
0.3
|
|
|
|
|
|
|
NET
INCOME
|
$
39,133
|
|
$
46,580
|
|
(16.0)
|
Less: Earnings
allocated to participating securities
|
$
1,389
|
|
$
1,884
|
|
(26.3)
|
Earnings available to
diluted common shares
|
$
37,744
|
|
$
44,696
|
|
(15.6)
|
DILUTED EARNINGS
PER SHARE
|
$
1.84
|
|
$
2.12
|
|
(13.2)
|
Weighted average
dilutive common shares outstanding
|
20,522
|
|
21,070
|
|
(2.6)
|
Weighted average
participating securities
|
761
|
|
892
|
|
(14.7)
|
Total weighted
average shares outstanding
|
21,283
|
|
21,962
|
|
(3.1)
|
|
|
|
|
|
|
|
Six Months
Ended June 30,
|
|
2017
|
|
2016
|
|
% Increase/
(Decrease)
|
REVENUES:
|
|
|
|
|
|
New vehicle retail
sales
|
$
2,785,981
|
|
$
2,950,609
|
|
(5.6)
|
Used vehicle retail
sales
|
1,346,876
|
|
1,403,949
|
|
(4.1)
|
Used vehicle
wholesale sales
|
203,534
|
|
197,871
|
|
2.9
|
Parts and
service
|
651,329
|
|
630,665
|
|
3.3
|
Finance, insurance
and other, net
|
203,304
|
|
207,710
|
|
(2.1)
|
Total
revenues
|
5,191,024
|
|
5,390,804
|
|
(3.7)
|
|
|
|
|
|
|
COST OF
SALES:
|
|
|
|
|
|
New vehicle retail
sales
|
2,641,843
|
|
2,797,734
|
|
(5.6)
|
Used vehicle retail
sales
|
1,256,958
|
|
1,306,484
|
|
(3.8)
|
Used vehicle
wholesale sales
|
203,701
|
|
196,474
|
|
3.7
|
Parts and
service
|
300,108
|
|
290,891
|
|
3.2
|
Total cost of
sales
|
4,402,610
|
|
4,591,583
|
|
(4.1)
|
|
|
|
|
|
|
GROSS
PROFIT
|
788,414
|
|
799,221
|
|
(1.4)
|
|
|
|
|
|
|
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES
|
588,347
|
|
592,687
|
|
(0.7)
|
|
|
|
|
|
|
DEPRECIATION AND
AMORTIZATION EXPENSE
|
27,699
|
|
25,177
|
|
10.0
|
|
|
|
|
|
|
ASSET
IMPAIRMENTS
|
-
|
|
1,956
|
|
(100.0)
|
|
|
|
|
|
|
OPERATING
INCOME
|
172,368
|
|
179,401
|
|
(3.9)
|
|
|
|
|
|
|
OTHER
EXPENSE:
|
|
|
|
|
|
Floorplan interest
expense
|
(25,168)
|
|
(22,603)
|
|
11.3
|
Other interest
expense, net
|
(34,314)
|
|
(33,634)
|
|
2.0
|
INCOME BEFORE
INCOME TAXES
|
112,886
|
|
123,164
|
|
(8.3)
|
|
|
|
|
|
|
PROVISION FOR INCOME
TAXES
|
(39,814)
|
|
(42,293)
|
|
(5.9)
|
|
|
|
|
|
|
NET
INCOME
|
$
73,072
|
|
$
80,871
|
|
(9.6)
|
Less: Earnings
allocated to participating securities
|
$
2,645
|
|
$
3,223
|
|
(17.9)
|
Earnings available to
diluted common shares
|
$
70,427
|
|
$
77,648
|
|
(9.3)
|
DILUTED EARNINGS
PER SHARE
|
$
3.42
|
|
$
3.57
|
|
(4.2)
|
Weighted average
dilutive common shares outstanding
|
20,609
|
|
21,762
|
|
(5.3)
|
Weighted average
participating securities
|
789
|
|
907
|
|
(13.0)
|
Total weighted
average shares outstanding
|
21,398
|
|
22,669
|
|
(5.6)
|
Group 1
Automotive, Inc.
|
Consolidated
Balance Sheets
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
December 31,
2016
|
|
%
Increase/
(Decrease)
|
ASSETS:
|
|
(Unaudited)
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
26,573
|
|
$
20,992
|
|
26.6
|
Contracts in
transit and vehicle receivables, net
|
|
217,378
|
|
269,508
|
|
(19.3)
|
Accounts and
notes receivable, net
|
|
158,542
|
|
173,364
|
|
(8.5)
|
Inventories,
net
|
|
1,803,909
|
|
1,651,815
|
|
9.2
|
Prepaid
expenses and other current assets
|
|
87,470
|
|
34,908
|
|
150.6
|
Total current
assets
|
|
2,293,872
|
|
2,150,587
|
|
6.7
|
PROPERTY AND
EQUIPMENT, net
|
|
1,167,345
|
|
1,125,883
|
|
3.7
|
GOODWILL AND
INTANGIBLE FRANCHISE RIGHTS
|
|
1,164,465
|
|
1,161,639
|
|
0.2
|
OTHER
ASSETS
|
|
18,903
|
|
23,794
|
|
(20.6)
|
Total
assets
|
|
$
4,644,585
|
|
$
4,461,903
|
|
4.1
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY:
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Floorplan notes
payable - credit facility and other
|
|
$
1,214,084
|
|
$
1,136,654
|
|
6.8
|
Offset account
related to floorplan notes payable - credit
facility
|
|
(55,579)
|
|
(59,626)
|
|
(6.8)
|
Floorplan notes
payable - manufacturer affiliates
|
|
430,619
|
|
392,661
|
|
9.7
|
Offset account
related to floorplan notes payable - manufacturer
affiliates
|
|
(21,000)
|
|
(25,500)
|
|
(17.6)
|
Current
maturities of long-term debt and short-term
financing
|
|
53,184
|
|
72,419
|
|
(26.6)
|
Current
liabilities from interest rate risk management
activities
|
|
1,626
|
|
3,941
|
|
(58.7)
|
Accounts
payable
|
|
330,747
|
|
356,099
|
|
(7.1)
|
Accrued
expenses
|
|
173,173
|
|
176,469
|
|
(1.9)
|
Total current
liabilities
|
|
2,126,854
|
|
2,053,117
|
|
3.6
|
5.00% SENIOR
NOTES (principal of $550,000 at December 31, 2016 and December 31,
2015, respectively)
|
|
541,256
|
|
540,465
|
|
0.1
|
5.25% SENIOR
NOTES (principal of $300,000 at December 31, 2016 and December 31,
2015, respectively)
|
|
295,869
|
|
295,591
|
|
0.1
|
ACQUISITION
LINE
|
|
32,509
|
|
—
|
|
100.0
|
REAL ESTATE
RELATED AND OTHER LONG-TERM DEBT, net of current
maturities
|
|
352,872
|
|
333,326
|
|
5.9
|
CAPITAL LEASE
OBLIGATIONS RELATED TO REAL ESTATE, net of current
maturities
|
|
41,339
|
|
43,427
|
|
(4.8)
|
DEFERRED INCOME
TAXES
|
|
174,220
|
|
161,502
|
|
7.9
|
LIABILITIES
FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES
|
|
18,065
|
|
20,470
|
|
(11.7)
|
OTHER
LIABILITIES
|
|
89,953
|
|
83,805
|
|
7.3
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
|
Common
stock
|
|
256
|
|
257
|
|
(0.4)
|
Additional
paid-in capital
|
|
287,410
|
|
290,899
|
|
(1.2)
|
Retained
earnings
|
|
1,116,195
|
|
1,053,301
|
|
6.0
|
Accumulated
other comprehensive loss
|
|
(136,268)
|
|
(146,944)
|
|
(7.3)
|
Treasury
stock
|
|
(295,945)
|
|
(267,313)
|
|
10.7
|
Total
stockholders' equity
|
|
$
971,648
|
|
$
930,200
|
|
4.5
|
Total
liabilities and stockholders' equity
|
|
$
4,644,585
|
|
$
4,461,903
|
|
4.1
|
Group 1
Automotive, Inc.
|
Additional
Information - Consolidated
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
2017
(%)
|
|
2016
(%)
|
|
2017
(%)
|
|
2016
(%)
|
NEW VEHICLE UNIT
SALES GEOGRAPHIC MIX:
|
|
|
|
|
|
|
|
Region
|
Geographic
Market
|
|
|
|
|
|
|
|
|
United
States
|
Texas
|
|
36.6
|
|
36.5
|
|
35.6
|
|
36.6
|
|
California
|
|
7.9
|
|
9.3
|
|
7.9
|
|
9.2
|
|
Oklahoma
|
|
6.5
|
|
6.8
|
|
6.5
|
|
7.0
|
|
Massachusetts
|
|
4.9
|
|
5.0
|
|
4.7
|
|
4.9
|
|
Georgia
|
|
4.8
|
|
4.1
|
|
4.7
|
|
4.0
|
|
Florida
|
|
2.5
|
|
2.6
|
|
2.5
|
|
2.5
|
|
New
Hampshire
|
|
2.3
|
|
1.9
|
|
2.0
|
|
1.8
|
|
New Jersey
|
|
1.9
|
|
1.6
|
|
1.7
|
|
1.6
|
|
Louisiana
|
|
1.9
|
|
2.0
|
|
2.0
|
|
2.0
|
|
Kansas
|
|
1.8
|
|
1.9
|
|
1.7
|
|
1.9
|
|
South
Carolina
|
|
1.5
|
|
1.4
|
|
1.4
|
|
1.4
|
|
Mississippi
|
|
1.3
|
|
1.6
|
|
1.4
|
|
1.5
|
|
Alabama
|
|
1.1
|
|
0.9
|
|
1.1
|
|
0.9
|
|
Maryland
|
|
0.4
|
|
0.5
|
|
0.4
|
|
0.5
|
|
|
|
75.4
|
|
76.1
|
|
73.6
|
|
75.8
|
|
|
|
|
|
|
|
|
|
|
International
|
United
Kingdom
|
|
19.3
|
|
18.0
|
|
21.4
|
|
18.0
|
|
Brazil
|
|
5.3
|
|
5.9
|
|
5.0
|
|
6.2
|
|
|
|
100.0
|
|
100.0
|
|
100.0
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
NEW VEHICLE UNIT
SALES BRAND MIX:
|
|
|
|
|
|
|
|
|
Toyota/Scion/Lexus
|
|
25.4
|
|
24.8
|
|
24.4
|
|
24.3
|
BMW/MINI
|
|
13.1
|
|
13.5
|
|
13.7
|
|
13.3
|
Volkswagen/Audi/Porsche
|
|
12.3
|
|
10.9
|
|
12.4
|
|
10.8
|
Ford/Lincoln
|
|
11.3
|
|
10.9
|
|
12.1
|
|
11.2
|
Honda/Acura
|
|
9.6
|
|
10.4
|
|
9.3
|
|
10.4
|
Nissan
|
|
7.6
|
|
6.2
|
|
7.9
|
|
7.0
|
Chevrolet/GMC/Buick/Cadillac
|
|
5.9
|
|
7.6
|
|
6.3
|
|
7.7
|
Hyundai/Kia
|
|
4.3
|
|
4.3
|
|
3.9
|
|
4.5
|
Mercedes-Benz/smart/Sprinter
|
|
4.2
|
|
4.3
|
|
4.1
|
|
4.0
|
Chrysler/Dodge/Jeep/RAM
|
|
4.1
|
|
4.1
|
|
3.9
|
|
4.1
|
Other
|
|
2.2
|
|
3.0
|
|
2.0
|
|
2.7
|
|
|
|
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,
|
|
|
2017
|
|
2016
|
|
% Increase/
(Decrease)
|
REVENUES:
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
1,143,771
|
|
$
1,203,311
|
|
(4.9)
|
Used vehicle retail
sales
|
|
536,193
|
|
575,280
|
|
(6.8)
|
Used vehicle
wholesale sales
|
|
66,476
|
|
62,062
|
|
7.1
|
Total used
|
|
602,669
|
|
637,342
|
|
(5.4)
|
Parts and
service
|
|
282,698
|
|
270,525
|
|
4.5
|
Finance, insurance
and other, net
|
|
94,552
|
|
96,204
|
|
(1.7)
|
Total
|
|
$
2,123,690
|
|
$
2,207,382
|
|
(3.8)
|
|
|
|
|
|
|
|
GROSS MARGIN
%:
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
5.0
|
|
5.1
|
|
|
Used vehicle retail
sales
|
|
6.8
|
|
7.0
|
|
|
Used vehicle
wholesale sales
|
|
0.4
|
|
—
|
|
|
Total used
|
|
6.1
|
|
6.3
|
|
|
Parts and
service
|
|
53.8
|
|
54.2
|
|
|
Finance, insurance
and other, net
|
|
100.0
|
|
100.0
|
|
|
Total
|
|
16.0
|
|
15.6
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT:
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
57,000
|
|
$
61,640
|
|
(7.5)
|
Used vehicle retail
sales
|
|
36,704
|
|
40,184
|
|
(8.7)
|
Used vehicle
wholesale sales
|
|
246
|
|
27
|
|
811.1
|
Total used
|
|
36,950
|
|
40,211
|
|
(8.1)
|
Parts and
service
|
|
151,971
|
|
146,541
|
|
3.7
|
Finance, insurance
and other, net
|
|
94,552
|
|
96,204
|
|
(1.7)
|
Total
|
|
$
340,473
|
|
$
344,596
|
|
(1.2)
|
|
|
|
|
|
|
|
UNITS
SOLD:
|
|
|
|
|
|
|
Retail new vehicles
sold
|
|
30,802
|
|
33,191
|
|
(7.2)
|
Retail used vehicles
sold
|
|
25,202
|
|
26,856
|
|
(6.2)
|
Wholesale used
vehicles sold
|
|
9,701
|
|
9,476
|
|
2.4
|
Total used
|
|
34,903
|
|
36,332
|
|
(3.9)
|
|
|
|
|
|
|
|
AVERAGE RETAIL
SALES PRICE:
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
37,133
|
|
$
36,254
|
|
2.4
|
Used vehicle
retail
|
|
$
21,276
|
|
$
21,421
|
|
(0.7)
|
|
|
|
|
|
|
|
GROSS PROFIT PER
UNIT SOLD:
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
1,851
|
|
$
1,857
|
|
(0.3)
|
Used vehicle retail
sales
|
|
1,456
|
|
1,496
|
|
(2.7)
|
Used vehicle
wholesale sales
|
|
25
|
|
3
|
|
733.3
|
Total used
|
|
1,059
|
|
1,107
|
|
(4.3)
|
Finance, insurance
and other, net (per retail unit)
|
|
$
1,688
|
|
$
1,602
|
|
5.4
|
|
|
|
|
|
|
|
OTHER:
|
|
|
|
|
|
|
SG&A
expenses
|
|
$
243,844
|
|
$
245,389
|
|
(0.6)
|
Adjusted SG&A
expenses(1)
|
|
$
243,201
|
|
$
242,370
|
|
0.3
|
SG&A as %
revenues
|
|
11.5
|
|
11.1
|
|
|
Adjusted SG&A as
% revenues (1)
|
|
11.5
|
|
11.0
|
|
|
SG&A as % gross
profit
|
|
71.6
|
|
71.2
|
|
|
Adjusted SG&A as
% gross profit (1)
|
|
71.4
|
|
70.3
|
|
|
Operating margin
%
|
|
4.0
|
|
4.0
|
|
|
Adjusted operating
margin % (1)
|
|
4.0
|
|
4.1
|
|
|
Pretax margin
%
|
|
2.6
|
|
2.8
|
|
|
Adjusted pretax
margin % (1)
|
|
2.7
|
|
3.0
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE:
|
|
|
|
|
|
|
Floorplan interest
expense
|
|
$
(12,062)
|
|
$
(10,401)
|
|
16.0
|
Floorplan
assistance
|
|
11,452
|
|
12,100
|
|
(5.4)
|
Net floorplan
(expenses) income
|
|
$
(610)
|
|
$
1,699
|
|
(135.9)
|
Other interest
expense, net
|
|
$
(16,572)
|
|
$
(15,357)
|
|
7.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
% Increase/
(Decrease)
|
REVENUES:
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
2,162,020
|
|
$
2,303,703
|
|
(6.2)
|
Used vehicle retail
sales
|
|
1,058,140
|
|
1,134,044
|
|
(6.7)
|
Used vehicle
wholesale sales
|
|
137,021
|
|
130,935
|
|
4.6
|
Total used
|
|
1,195,161
|
|
1,264,979
|
|
(5.5)
|
Parts and
service
|
|
553,857
|
|
533,983
|
|
3.7
|
Finance, insurance
and other, net
|
|
180,371
|
|
186,350
|
|
(3.2)
|
Total
|
|
$
4,091,409
|
|
$
4,289,015
|
|
(4.6)
|
|
|
|
|
|
|
|
GROSS MARGIN
%:
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
5.0
|
|
5.0
|
|
|
Used vehicle retail
sales
|
|
7.1
|
|
7.4
|
|
|
Used vehicle
wholesale sales
|
|
(0.1)
|
|
0.7
|
|
|
Total used
|
|
6.2
|
|
6.7
|
|
|
Parts and
service
|
|
53.8
|
|
54.4
|
|
|
Finance, insurance
and other, net
|
|
100.0
|
|
100.0
|
|
|
Total
|
|
16.2
|
|
15.8
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT:
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
108,209
|
|
$
115,787
|
|
(6.5)
|
Used vehicle retail
sales
|
|
74,636
|
|
83,639
|
|
(10.8)
|
Used vehicle
wholesale sales
|
|
(116)
|
|
871
|
|
(113.3)
|
Total used
|
|
74,520
|
|
84,510
|
|
(11.8)
|
Parts and
service
|
|
297,969
|
|
290,660
|
|
2.5
|
Finance, insurance
and other, net
|
|
180,371
|
|
186,350
|
|
(3.2)
|
Total
|
|
$
661,069
|
|
$
677,307
|
|
(2.4)
|
|
|
|
|
|
|
|
UNITS
SOLD:
|
|
|
|
|
|
|
Retail new vehicles
sold
|
|
58,300
|
|
63,992
|
|
(8.9)
|
Retail used vehicles
sold
|
|
50,131
|
|
53,687
|
|
(6.6)
|
Wholesale used
vehicles sold
|
|
19,682
|
|
19,889
|
|
(1.0)
|
Total used
|
|
69,813
|
|
73,576
|
|
(5.1)
|
|
|
|
|
|
|
|
AVERAGE RETAIL
SALES PRICE:
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
37,084
|
|
$
36,000
|
|
3.0
|
Used vehicle
retail
|
|
$
21,107
|
|
$
21,123
|
|
(0.1)
|
|
|
|
|
|
|
|
GROSS PROFIT PER
UNIT SOLD:
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
1,856
|
|
$
1,809
|
|
2.6
|
Used vehicle retail
sales
|
|
1,489
|
|
1,558
|
|
(4.4)
|
Used vehicle
wholesale sales
|
|
(6)
|
|
44
|
|
(113.6)
|
Total used
|
|
1,067
|
|
1,149
|
|
(7.1)
|
Finance, insurance
and other, net (per retail unit)
|
|
$
1,663
|
|
$
1,584
|
|
5.0
|
|
|
|
|
|
|
|
OTHER:
|
|
|
|
|
|
|
SG&A
expenses
|
|
$
480,117
|
|
$
491,229
|
|
(2.3)
|
Adjusted SG&A
expenses(1)
|
|
$
481,307
|
|
$
486,456
|
|
(1.1)
|
SG&A as %
revenues
|
|
11.7
|
|
11.5
|
|
|
Adjusted SG&A as
% revenues (1)
|
|
11.8
|
|
11.3
|
|
|
SG&A as % gross
profit
|
|
72.6
|
|
72.5
|
|
|
Adjusted SG&A as
% gross profit (1)
|
|
72.8
|
|
71.8
|
|
|
Operating margin
%
|
|
3.8
|
|
3.8
|
|
|
Adjusted operating
margin % (1)
|
|
3.8
|
|
4.0
|
|
|
Pretax margin
%
|
|
2.5
|
|
2.6
|
|
|
Adjusted pretax
margin % (1)
|
|
2.5
|
|
2.8
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE:
|
|
|
|
|
|
|
Floorplan interest
expense
|
|
$
(22,940)
|
|
$
(20,449)
|
|
12.2
|
Floorplan
assistance
|
|
21,736
|
|
23,351
|
|
(6.9)
|
Net floorplan
(expense) income
|
|
$
(1,204)
|
|
$
2,902
|
|
(141.5)
|
Other interest
expense, net
|
|
$
(32,844)
|
|
$
(30,870)
|
|
6.4
|
|
|
|
|
|
|
|
|
(1)
|
See the section of
this release entitled "Non-GAAP Financial Measures" and the tables
attached hereto for information regarding certain selected items
that the Company believes impact comparability of financial results
between reporting periods, as well as for information regarding
non-GAAP financial measures and their reconciliation to the most
directly comparable measures as reported in accordance with U.S.
GAAP.
|
Group 1
Automotive, Inc.
|
Additional
Information - U.K.
|
(Unaudited)
|
(Dollars in
thousands, except per unit amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
% Increase/
(Decrease)
|
|
Constant Currency
(1)
% Increase/
(Decrease)
|
REVENUES:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
231,415
|
|
$
262,028
|
|
(11.7)
|
|
(1.0)
|
Used vehicle retail
sales
|
|
128,406
|
|
122,827
|
|
4.5
|
|
17.2
|
Used vehicle
wholesale sales
|
|
30,448
|
|
33,367
|
|
(8.7)
|
|
2.2
|
Total used
|
|
158,854
|
|
156,194
|
|
1.7
|
|
14.0
|
Parts and
service
|
|
37,050
|
|
39,949
|
|
(7.3)
|
|
3.9
|
Finance, insurance
and other, net
|
|
9,784
|
|
9,621
|
|
1.7
|
|
13.9
|
Total
|
|
$
437,103
|
|
$
467,792
|
|
(6.6)
|
|
4.7
|
|
|
|
|
|
|
|
|
|
GROSS MARGIN
%:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
5.9
|
|
5.9
|
|
|
|
|
Used vehicle retail
sales
|
|
5.2
|
|
5.6
|
|
|
|
|
Used vehicle
wholesale sales
|
|
(2.3)
|
|
(0.3)
|
|
|
|
|
Total used
|
|
3.8
|
|
4.3
|
|
|
|
|
Parts and
service
|
|
57.9
|
|
56.3
|
|
|
|
|
Finance, insurance
and other, net
|
|
100.0
|
|
100.0
|
|
|
|
|
Total
|
|
11.7
|
|
11.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
13,744
|
|
$
15,462
|
|
(11.1)
|
|
(0.6)
|
Used vehicle retail
sales
|
|
6,679
|
|
6,854
|
|
(2.6)
|
|
9.4
|
Used vehicle
wholesale sales
|
|
(715)
|
|
(114)
|
|
(527.2)
|
|
(585.0)
|
Total used
|
|
5,964
|
|
6,740
|
|
(11.5)
|
|
(0.3)
|
Parts and
service
|
|
21,440
|
|
22,505
|
|
(4.7)
|
|
6.7
|
Finance, insurance
and other, net
|
|
9,784
|
|
9,621
|
|
1.7
|
|
13.9
|
Total
|
|
$
50,932
|
|
$
54,328
|
|
(6.3)
|
|
5.0
|
|
|
|
|
|
|
|
|
|
UNITS
SOLD:
|
|
|
|
|
|
|
|
|
Retail new vehicles
sold
|
|
7,894
|
|
7,868
|
|
0.3
|
|
|
Retail used vehicles
sold
|
|
5,813
|
|
5,006
|
|
16.1
|
|
|
Wholesale used
vehicles sold
|
|
4,137
|
|
3,997
|
|
3.5
|
|
|
Total used
|
|
9,950
|
|
9,003
|
|
10.5
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE RETAIL
SALES PRICE:
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
29,315
|
|
$
33,303
|
|
(12.0)
|
|
(1.4)
|
Used vehicle
retail
|
|
$
22,089
|
|
$
24,536
|
|
(10.0)
|
|
1.0
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT PER
UNIT SOLD:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
1,741
|
|
$
1,965
|
|
(11.4)
|
|
(0.9)
|
Used vehicle retail
sales
|
|
1,149
|
|
1,369
|
|
(16.1)
|
|
(5.8)
|
Used vehicle
wholesale sales
|
|
(173)
|
|
(29)
|
|
(496.6)
|
|
(561.8)
|
Total used
|
|
599
|
|
749
|
|
(20.0)
|
|
(9.8)
|
Finance, insurance
and other, net (per retail unit)
|
|
$
714
|
|
$
747
|
|
(4.4)
|
|
7.0
|
|
|
|
|
|
|
|
|
|
OTHER:
|
|
|
|
|
|
|
|
|
SG&A
expenses
|
|
$
42,456
|
|
$
42,109
|
|
0.8
|
|
13.1
|
Adjusted SG&A
expenses(1)
|
|
$
42,168
|
|
$
42,109
|
|
0.1
|
|
12.3
|
SG&A as %
revenues
|
|
9.7
|
|
9.0
|
|
|
|
|
Adjusted SG&A as
% revenues (1)
|
|
9.6
|
|
9.0
|
|
|
|
|
SG&A as % gross
profit
|
|
83.4
|
|
77.5
|
|
|
|
|
Adjusted SG&A as
% gross profit (1)
|
|
82.8
|
|
77.5
|
|
|
|
|
Operating margin
%
|
|
1.5
|
|
2.2
|
|
|
|
|
Adjusted operating
margin % (1)
|
|
1.6
|
|
2.2
|
|
|
|
|
Pretax margin
%
|
|
1.1
|
|
1.7
|
|
|
|
|
Adjusted pretax
margin % (1)
|
|
1.2
|
|
1.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE:
|
|
|
|
|
|
|
|
|
Floorplan interest
expense
|
|
$
(1,053)
|
|
$
(1,134)
|
|
(7.1)
|
|
4.1
|
Floorplan
assistance
|
|
220
|
|
225
|
|
(2.2)
|
|
9.7
|
Net floorplan
expense
|
|
$
(833)
|
|
$
(909)
|
|
(8.4)
|
|
2.8
|
Other interest
expense, net
|
|
$
(684)
|
|
$
(1,385)
|
|
(50.6)
|
|
(44.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
% Increase/
(Decrease)
|
|
Constant Currency
(1)
% Increase/ (Decrease)
|
REVENUES:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
490,055
|
|
$
508,564
|
|
(3.6)
|
|
9.8
|
Used vehicle retail
sales
|
|
243,775
|
|
232,944
|
|
4.6
|
|
19.1
|
Used vehicle
wholesale sales
|
|
60,957
|
|
65,399
|
|
(6.8)
|
|
6.1
|
Total used
|
|
304,732
|
|
298,343
|
|
2.1
|
|
16.2
|
Parts and
service
|
|
73,831
|
|
74,498
|
|
(0.9)
|
|
12.8
|
Finance, insurance
and other, net
|
|
18,812
|
|
18,283
|
|
2.9
|
|
17.0
|
Total
|
|
$
887,430
|
|
$
899,688
|
|
(1.4)
|
|
12.3
|
|
|
|
|
|
|
|
|
|
GROSS MARGIN
%:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
5.7
|
|
5.8
|
|
|
|
|
Used vehicle retail
sales
|
|
5.0
|
|
5.2
|
|
|
|
|
Used vehicle
wholesale sales
|
|
(0.8)
|
|
0.7
|
|
|
|
|
Total used
|
|
3.8
|
|
4.2
|
|
|
|
|
Parts and
service
|
|
57.8
|
|
55.0
|
|
|
|
|
Finance, insurance
and other, net
|
|
100.0
|
|
100.0
|
|
|
|
|
Total
|
|
11.4
|
|
11.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
28,145
|
|
$
29,316
|
|
(4.0)
|
|
9.2
|
Used vehicle retail
sales
|
|
12,108
|
|
12,064
|
|
0.4
|
|
14.2
|
Used vehicle
wholesale sales
|
|
(504)
|
|
458
|
|
(210.0)
|
|
(220.6)
|
Total used
|
|
11,604
|
|
12,522
|
|
(7.3)
|
|
5.6
|
Parts and
service
|
|
42,665
|
|
40,953
|
|
4.2
|
|
18.6
|
Finance, insurance
and other, net
|
|
18,812
|
|
18,283
|
|
2.9
|
|
17.0
|
Total
|
|
$
101,226
|
|
$
101,074
|
|
0.2
|
|
14.0
|
|
|
|
|
|
|
|
|
|
UNITS
SOLD:
|
|
|
|
|
|
|
|
|
Retail new vehicles
sold
|
|
16,912
|
|
15,226
|
|
11.1
|
|
|
Retail used vehicles
sold
|
|
11,424
|
|
9,601
|
|
19.0
|
|
|
Wholesale used
vehicles sold
|
|
8,306
|
|
7,639
|
|
8.7
|
|
|
Total used
|
|
19,730
|
|
17,240
|
|
14.4
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE RETAIL
SALES PRICE:
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
28,977
|
|
$
33,401
|
|
(13.2)
|
|
(1.1)
|
Used vehicle
retail
|
|
$
21,339
|
|
$
24,262
|
|
(12.0)
|
|
0.1
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT PER
UNIT SOLD:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
1,664
|
|
$
1,925
|
|
(13.6)
|
|
(1.7)
|
Used vehicle retail
sales
|
|
1,060
|
|
1,257
|
|
(15.7)
|
|
(4.0)
|
Used vehicle
wholesale sales
|
|
(61)
|
|
60
|
|
(201.7)
|
|
(210.9)
|
Total used
|
|
588
|
|
726
|
|
(19.0)
|
|
(7.7)
|
Finance, insurance
and other, net (per retail unit)
|
|
$
664
|
|
$
736
|
|
(9.8)
|
|
2.5
|
|
|
|
|
|
|
|
|
|
OTHER:
|
|
|
|
|
|
|
|
|
SG&A
expenses
|
|
$
84,080
|
|
$
79,545
|
|
5.7
|
|
20.3
|
Adjusted SG&A
expenses(1)
|
|
$
83,792
|
|
$
78,984
|
|
6.1
|
|
20.8
|
SG&A as %
revenues
|
|
9.5
|
|
8.8
|
|
|
|
|
Adjusted SG&A as
% revenues (1)
|
|
9.4
|
|
8.8
|
|
|
|
|
SG&A as % gross
profit
|
|
83.1
|
|
78.7
|
|
|
|
|
Adjusted SG&A as
% gross profit (1)
|
|
82.8
|
|
78.1
|
|
|
|
|
Operating margin
%
|
|
1.5
|
|
2.0
|
|
|
|
|
Adjusted operating
margin % (1)
|
|
1.6
|
|
2.1
|
|
|
|
|
Pretax margin
%
|
|
1.2
|
|
1.5
|
|
|
|
|
Adjusted pretax
margin % (1)
|
|
1.2
|
|
1.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE:
|
|
|
|
|
|
|
|
|
Floorplan interest
expense
|
|
$
(2,087)
|
|
$
(2,054)
|
|
1.6
|
|
15.6
|
Floorplan
assistance
|
|
449
|
|
488
|
|
(8.0)
|
|
4.8
|
Net floorplan
expense
|
|
$
(1,638)
|
|
$
(1,566)
|
|
4.6
|
|
19.0
|
Other interest
expense, net
|
|
$
(1,265)
|
|
$
(2,667)
|
|
(52.6)
|
|
(46.0)
|
|
|
|
|
|
|
|
|
|
|
(1)
|
See the section of
this release entitled "Non-GAAP Financial Measures" and the tables
attached hereto for information regarding certain selected items
that the Company believes impact comparability of financial results
between reporting periods, as well as for information regarding
non-GAAP financial measures and their reconciliation to the most
directly comparable measures as reported in accordance with U.S.
GAAP.
|
Group 1
Automotive, Inc.
|
Additional
Information - Brazil
|
(Unaudited)
|
(Dollars in
thousands, except per unit amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
% Increase/
(Decrease)
|
|
Constant Currency
(1)
% Increase/
(Decrease)
|
REVENUES:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
73,582
|
|
$
75,420
|
|
(2.4)
|
|
(10.5)
|
Used vehicle retail
sales
|
|
21,350
|
|
17,671
|
|
20.8
|
|
11.0
|
Used vehicle
wholesale sales
|
|
2,453
|
|
850
|
|
188.6
|
|
166.2
|
Total used
|
|
23,803
|
|
18,521
|
|
28.5
|
|
18.1
|
Parts and
service
|
|
11,883
|
|
11,599
|
|
2.4
|
|
(6.0)
|
Finance, insurance
and other, net
|
|
2,134
|
|
1,735
|
|
23.0
|
|
12.9
|
Total
|
|
$ 111,402
|
|
$ 107,275
|
|
3.8
|
|
(4.7)
|
|
|
|
|
|
|
|
|
|
GROSS MARGIN
%:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
5.7
|
|
5.4
|
|
|
|
|
Used vehicle retail
sales
|
|
7.2
|
|
6.9
|
|
|
|
|
Used vehicle
wholesale sales
|
|
8.2
|
|
4.1
|
|
|
|
|
Total used
|
|
7.3
|
|
6.8
|
|
|
|
|
Parts and
service
|
|
45.9
|
|
35.8
|
|
|
|
|
Finance, insurance
and other, net
|
|
100.0
|
|
100.0
|
|
|
|
|
Total
|
|
12.1
|
|
10.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
4,167
|
|
$
4,046
|
|
3.0
|
|
(5.5)
|
Used vehicle retail
sales
|
|
1,530
|
|
1,227
|
|
24.7
|
|
14.6
|
Used vehicle
wholesale sales
|
|
202
|
|
35
|
|
477.1
|
|
422.2
|
Total used
|
|
1,732
|
|
1,262
|
|
37.2
|
|
26.0
|
Parts and
service
|
|
5,454
|
|
4,152
|
|
31.4
|
|
20.4
|
Finance, insurance
and other, net
|
|
2,134
|
|
1,735
|
|
23.0
|
|
12.9
|
Total
|
|
$
13,487
|
|
$
11,195
|
|
20.5
|
|
10.5
|
|
|
|
|
|
|
|
|
|
UNITS
SOLD:
|
|
|
|
|
|
|
|
|
Retail new vehicles
sold
|
|
2,180
|
|
2,585
|
|
(15.7)
|
|
|
Retail used vehicles
sold
|
|
988
|
|
1,089
|
|
(9.3)
|
|
|
Wholesale used
vehicles sold
|
|
237
|
|
211
|
|
12.3
|
|
|
Total used
|
|
1,225
|
|
1,300
|
|
(5.8)
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE RETAIL
SALES PRICE:
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
33,753
|
|
$
29,176
|
|
15.7
|
|
6.1
|
Used vehicle
retail
|
|
$
21,609
|
|
$
16,227
|
|
33.2
|
|
22.3
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT PER
UNIT SOLD:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
1,911
|
|
$
1,565
|
|
22.1
|
|
12.1
|
Used vehicle retail
sales
|
|
1,549
|
|
1,127
|
|
37.4
|
|
26.3
|
Used vehicle
wholesale sales
|
|
852
|
|
166
|
|
413.3
|
|
364.9
|
Total used
|
|
1,414
|
|
971
|
|
45.6
|
|
33.7
|
Finance, insurance
and other, net (per retail unit)
|
|
$
674
|
|
$
472
|
|
42.8
|
|
30.9
|
|
|
|
|
|
|
|
|
|
OTHER:
|
|
|
|
|
|
|
|
|
SG&A
expenses
|
|
$
12,268
|
|
$
11,524
|
|
6.5
|
|
(2.3)
|
SG&A as %
revenues
|
|
11.0
|
|
10.7
|
|
|
|
|
SG&A as % gross
profit
|
|
91.0
|
|
102.9
|
|
|
|
|
Operating margin
%
|
|
0.8
|
|
(0.6)
|
|
|
|
|
Pretax margin
%
|
|
0.6
|
|
(0.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE:
|
|
|
|
|
|
|
|
|
Floorplan interest
expense
|
|
$
(111)
|
|
$
(58)
|
|
91.4
|
|
76.6
|
Floorplan
assistance
|
|
-
|
|
-
|
|
-
|
|
-
|
Net floorplan
expense
|
|
$
(111)
|
|
$
(58)
|
|
91.4
|
|
76.6
|
Other interest
expense, net
|
|
$
(59)
|
|
$
37
|
|
(259.5)
|
|
(248.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
% Increase/
(Decrease)
|
|
Constant Currency
(1)%
Increase/ (Decrease)
|
REVENUES:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$ 133,906
|
|
$ 138,342
|
|
(3.2)
|
|
(16.3)
|
Used vehicle retail
sales
|
|
44,961
|
|
36,961
|
|
21.6
|
|
4.2
|
Used vehicle
wholesale sales
|
|
5,556
|
|
1,537
|
|
261.5
|
|
212.1
|
Total used
|
|
50,517
|
|
38,498
|
|
31.2
|
|
12.5
|
Parts and
service
|
|
23,641
|
|
22,184
|
|
6.6
|
|
(8.1)
|
Finance, insurance
and other, net
|
|
4,121
|
|
3,077
|
|
33.9
|
|
15.8
|
Total
|
|
$ 212,185
|
|
$ 202,101
|
|
5.0
|
|
(9.4)
|
|
|
|
|
|
|
|
|
|
GROSS MARGIN
%:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
5.8
|
|
5.6
|
|
|
|
|
Used vehicle retail
sales
|
|
7.1
|
|
4.8
|
|
|
|
|
Used vehicle
wholesale sales
|
|
8.2
|
|
4.4
|
|
|
|
|
Total used
|
|
7.2
|
|
4.8
|
|
|
|
|
Parts and
service
|
|
44.8
|
|
36.8
|
|
|
|
|
Finance, insurance
and other, net
|
|
100.0
|
|
100.0
|
|
|
|
|
Total
|
|
12.3
|
|
10.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
7,784
|
|
$
7,772
|
|
0.2
|
|
(13.8)
|
Used vehicle retail
sales
|
|
3,174
|
|
1,762
|
|
80.1
|
|
58.0
|
Used vehicle
wholesale sales
|
|
453
|
|
68
|
|
566.2
|
|
468.8
|
Total used
|
|
3,627
|
|
1,830
|
|
98.2
|
|
73.2
|
Parts and
service
|
|
10,587
|
|
8,161
|
|
29.7
|
|
11.6
|
Finance, insurance
and other, net
|
|
4,121
|
|
3,077
|
|
33.9
|
|
15.8
|
Total
|
|
$
26,119
|
|
$
20,840
|
|
25.3
|
|
8.1
|
|
|
|
|
|
|
|
|
|
UNITS
SOLD:
|
|
|
|
|
|
|
|
|
Retail new vehicles
sold
|
|
3,954
|
|
5,207
|
|
(24.1)
|
|
|
Retail used vehicles
sold
|
|
2,014
|
|
2,454
|
|
(17.9)
|
|
|
Wholesale used
vehicles sold
|
|
616
|
|
522
|
|
18.0
|
|
|
Total used
|
|
2,630
|
|
2,976
|
|
(11.6)
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE RETAIL
SALES PRICE:
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
33,866
|
|
$
26,568
|
|
27.5
|
|
10.2
|
Used vehicle
retail
|
|
$
22,324
|
|
$
15,062
|
|
48.2
|
|
27.0
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT PER
UNIT SOLD:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
1,969
|
|
$
1,493
|
|
31.9
|
|
13.5
|
Used vehicle retail
sales
|
|
1,576
|
|
718
|
|
119.5
|
|
92.5
|
Used vehicle
wholesale sales
|
|
735
|
|
130
|
|
465.4
|
|
382.0
|
Total used
|
|
1,379
|
|
615
|
|
124.2
|
|
96.0
|
Finance, insurance
and other, net (per retail unit)
|
|
$
691
|
|
$
402
|
|
71.9
|
|
48.6
|
|
|
|
|
|
|
|
|
|
OTHER:
|
|
|
|
|
|
|
|
|
SG&A
expenses
|
|
$
24,150
|
|
$
21,913
|
|
10.2
|
|
(5.1)
|
Adjusted SG&A
expenses(1)
|
|
$
24,150
|
|
$
21,542
|
|
12.1
|
|
(3.4)
|
SG&A as %
revenues
|
|
11.4
|
|
10.8
|
|
|
|
|
Adjusted SG&A as
% revenues (1)
|
|
11.4
|
|
10.7
|
|
|
|
|
SG&A as % gross
profit
|
|
92.5
|
|
105.2
|
|
|
|
|
Adjusted SG&A as
% gross profit (1)
|
|
92.5
|
|
103.4
|
|
|
|
|
Operating margin
%
|
|
0.6
|
|
(1.0)
|
|
|
|
|
Adjusted operating
margin % (1)
|
|
0.6
|
|
(0.6)
|
|
|
|
|
Pretax margin
%
|
|
0.4
|
|
(1.1)
|
|
|
|
|
Adjusted pretax
margin % (1)
|
|
0.4
|
|
(0.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE:
|
|
|
|
|
|
|
|
|
Floorplan interest
expense
|
|
$
(141)
|
|
$
(100)
|
|
41.0
|
|
23.7
|
Floorplan
assistance
|
|
-
|
|
-
|
|
-
|
|
-
|
Net floorplan
expense
|
|
$
(141)
|
|
$
(100)
|
|
41.0
|
|
23.7
|
Other interest
expense, net
|
|
$
(205)
|
|
$
(97)
|
|
111.3
|
|
61.0
|
|
|
|
|
|
|
|
|
|
|
(1)
|
See the section of
this release entitled "Non-GAAP Financial Measures" and the tables
attached hereto for information regarding certain selected items
that the Company believes impact comparability of financial results
between reporting periods, as well as for information regarding
non-GAAP financial measures and their reconciliation to the most
directly comparable measures as reported in accordance with U.S.
GAAP.
|
Group 1
Automotive, Inc.
|
Additional
Information - Consolidated
|
(Unaudited)
|
(Dollars in
thousands, except per unit amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
% Increase/
(Decrease)
|
|
Constant Currency
% (1) Increase/ (Decrease)
|
REVENUES:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
1,448,768
|
|
$
1,540,759
|
|
(6.0)
|
|
(4.6)
|
Used vehicle retail
sales
|
|
685,949
|
|
715,778
|
|
(4.2)
|
|
(2.2)
|
Used vehicle
wholesale sales
|
|
99,377
|
|
96,279
|
|
3.2
|
|
6.8
|
Total used
|
|
785,326
|
|
812,057
|
|
(3.3)
|
|
(1.2)
|
Parts and
service
|
|
331,631
|
|
322,073
|
|
3.0
|
|
4.1
|
Finance, insurance
and other, net
|
|
106,470
|
|
107,560
|
|
(1.0)
|
|
(0.1)
|
Total
|
|
$
2,672,195
|
|
$
2,782,449
|
|
(4.0)
|
|
(2.4)
|
|
|
|
|
|
|
|
|
|
GROSS MARGIN
%:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
5.2
|
|
5.3
|
|
|
|
|
Used vehicle retail
sales
|
|
6.5
|
|
6.7
|
|
|
|
|
Used vehicle
wholesale sales
|
|
(0.3)
|
|
(0.1)
|
|
|
|
|
Total used
|
|
5.7
|
|
5.9
|
|
|
|
|
Parts and
service
|
|
53.9
|
|
53.8
|
|
|
|
|
Finance, insurance
and other, net
|
|
100.0
|
|
100.0
|
|
|
|
|
Total
|
|
15.2
|
|
14.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
74,911
|
|
$
81,148
|
|
(7.7)
|
|
(6.1)
|
Used vehicle retail
sales
|
|
44,913
|
|
48,265
|
|
(6.9)
|
|
(5.5)
|
Used vehicle
wholesale sales
|
|
(267)
|
|
(52)
|
|
(413.5)
|
|
(570.2)
|
Total used
|
|
44,646
|
|
48,213
|
|
(7.4)
|
|
(6.1)
|
Parts and
service
|
|
178,865
|
|
173,198
|
|
3.3
|
|
4.5
|
Finance, insurance
and other, net
|
|
106,470
|
|
107,560
|
|
(1.0)
|
|
(0.1)
|
Total
|
|
$
404,892
|
|
$
410,119
|
|
(1.3)
|
|
(0.1)
|
|
|
|
|
|
|
|
|
|
UNITS
SOLD:
|
|
|
|
|
|
|
|
|
Retail new vehicles
sold
|
|
40,876
|
|
43,644
|
|
(6.3)
|
|
|
Retail used vehicles
sold
|
|
32,003
|
|
32,951
|
|
(2.9)
|
|
|
Wholesale used
vehicles sold
|
|
14,075
|
|
13,684
|
|
2.9
|
|
|
Total used
|
|
46,078
|
|
46,635
|
|
(1.2)
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE RETAIL
SALES PRICE:
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
35,443
|
|
$
35,303
|
|
0.4
|
|
1.9
|
Used vehicle
retail
|
|
$
21,434
|
|
$
21,722
|
|
(1.3)
|
|
0.7
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT PER
UNIT SOLD:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
1,833
|
|
$
1,859
|
|
(1.4)
|
|
0.3
|
Used vehicle retail
sales
|
|
1,403
|
|
1,465
|
|
(4.2)
|
|
(2.7)
|
Used vehicle
wholesale sales
|
|
(19)
|
|
(4)
|
|
(375.0)
|
|
(551.6)
|
Total used
|
|
969
|
|
1,034
|
|
(6.3)
|
|
(5.0)
|
Finance, insurance
and other, net (per retail unit)
|
|
$
1,461
|
|
$
1,404
|
|
4.1
|
|
5.0
|
|
|
|
|
|
|
|
|
|
OTHER:
|
|
|
|
|
|
|
|
|
SG&A
expenses
|
|
$
298,568
|
|
$
299,022
|
|
(0.2)
|
|
1.2
|
Adjusted SG&A
expenses(1)
|
|
$
297,637
|
|
$
296,003
|
|
0.6
|
|
1.9
|
SG&A as %
revenues
|
|
11.2
|
|
10.7
|
|
|
|
|
Adjusted SG&A as
% revenues (1)
|
|
11.1
|
|
10.6
|
|
|
|
|
SG&A as % gross
profit
|
|
73.7
|
|
72.9
|
|
|
|
|
Adjusted SG&A as
% gross profit (1)
|
|
73.5
|
|
72.2
|
|
|
|
|
Operating margin
%
|
|
3.5
|
|
3.5
|
|
|
|
|
Adjusted operating
margin % (1)
|
|
3.5
|
|
3.6
|
|
|
|
|
Pretax margin
%
|
|
2.3
|
|
2.5
|
|
|
|
|
Adjusted pretax
margin % (1)
|
|
2.3
|
|
2.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE:
|
|
|
|
|
|
|
|
|
Floorplan interest
expense
|
|
$
(13,226)
|
|
$
(11,593)
|
|
14.1
|
|
15.1
|
Floorplan
assistance
|
|
11,672
|
|
12,325
|
|
(5.3)
|
|
(5.1)
|
Net floorplan
income
|
|
$
(1,554)
|
|
$
732
|
|
(312.3)
|
|
(324.9)
|
Other interest
expense, net
|
|
$
(17,315)
|
|
$
(16,705)
|
|
3.7
|
|
4.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
% Increase/
(Decrease)
|
|
Constant Currency
% (1)
Increase/
(Decrease)
|
REVENUES:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
2,785,981
|
|
$
2,950,609
|
|
(5.6)
|
|
(3.9)
|
Used vehicle retail
sales
|
|
1,346,876
|
|
1,403,949
|
|
(4.1)
|
|
(2.1)
|
Used vehicle
wholesale sales
|
|
203,534
|
|
197,871
|
|
2.9
|
|
6.7
|
Total used
|
|
1,550,410
|
|
1,601,820
|
|
(3.2)
|
|
(1.0)
|
Parts and
service
|
|
651,329
|
|
630,665
|
|
3.3
|
|
4.4
|
Finance, insurance
and other, net
|
|
203,304
|
|
207,710
|
|
(2.1)
|
|
(1.1)
|
Total
|
|
$
5,191,024
|
|
$
5,390,804
|
|
(3.7)
|
|
(2.0)
|
|
|
|
|
|
|
|
|
|
GROSS MARGIN
%:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
5.2
|
|
5.2
|
|
|
|
|
Used vehicle retail
sales
|
|
6.7
|
|
6.9
|
|
|
|
|
Used vehicle
wholesale sales
|
|
(0.1)
|
|
0.7
|
|
|
|
|
Total used
|
|
5.8
|
|
6.2
|
|
|
|
|
Parts and
service
|
|
53.9
|
|
53.9
|
|
|
|
|
Finance, insurance
and other, net
|
|
100.0
|
|
100.0
|
|
|
|
|
Total
|
|
15.2
|
|
14.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
144,138
|
|
$
152,875
|
|
(5.7)
|
|
(3.9)
|
Used vehicle retail
sales
|
|
89,918
|
|
97,465
|
|
(7.7)
|
|
(6.4)
|
Used vehicle
wholesale sales
|
|
(167)
|
|
1,397
|
|
(112.0)
|
|
(120.2)
|
Total used
|
|
89,751
|
|
98,862
|
|
(9.2)
|
|
(8.0)
|
Parts and
service
|
|
351,221
|
|
339,774
|
|
3.4
|
|
4.7
|
Finance, insurance
and other, net
|
|
203,304
|
|
207,710
|
|
(2.1)
|
|
(1.1)
|
Total
|
|
$
788,414
|
|
$
799,221
|
|
(1.4)
|
|
(0.1)
|
|
|
|
|
|
|
|
|
|
UNITS
SOLD:
|
|
|
|
|
|
|
|
|
Retail new vehicles
sold
|
|
79,166
|
|
84,425
|
|
(6.2)
|
|
|
Retail used vehicles
sold
|
|
63,569
|
|
65,742
|
|
(3.3)
|
|
|
Wholesale used
vehicles sold
|
|
28,604
|
|
28,050
|
|
2.0
|
|
|
Total used
|
|
92,173
|
|
93,792
|
|
(1.7)
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE RETAIL
SALES PRICE:
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
35,192
|
|
$
34,949
|
|
0.7
|
|
2.5
|
Used vehicle
retail
|
|
$
21,188
|
|
$
21,355
|
|
(0.8)
|
|
1.2
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT PER
UNIT SOLD:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
1,821
|
|
$
1,811
|
|
0.6
|
|
2.5
|
Used vehicle retail
sales
|
|
1,414
|
|
1,483
|
|
(4.7)
|
|
(3.2)
|
Used vehicle
wholesale sales
|
|
(6)
|
|
50
|
|
(112.0)
|
|
(119.8)
|
Total used
|
|
974
|
|
1,054
|
|
(7.6)
|
|
(6.4)
|
Finance, insurance
and other, net (per retail unit)
|
|
$
1,424
|
|
$
1,383
|
|
3.0
|
|
4.0
|
|
|
|
|
|
|
|
|
|
OTHER:
|
|
|
|
|
|
|
|
|
SG&A
expenses
|
|
$
588,347
|
|
$
592,687
|
|
(0.7)
|
|
0.7
|
Adjusted SG&A
expenses(1)
|
|
$
589,249
|
|
$
586,983
|
|
0.4
|
|
1.8
|
SG&A as %
revenues
|
|
11.3
|
|
11.0
|
|
|
|
|
Adjusted SG&A as
% revenues (1)
|
|
11.4
|
|
10.9
|
|
|
|
|
SG&A as % gross
profit
|
|
74.6
|
|
74.2
|
|
|
|
|
Adjusted SG&A as
% gross profit (1)
|
|
74.7
|
|
73.4
|
|
|
|
|
Operating margin
%
|
|
3.3
|
|
3.3
|
|
|
|
|
Adjusted operating
margin % (1)
|
|
3.3
|
|
3.5
|
|
|
|
|
Pretax margin
%
|
|
2.2
|
|
2.3
|
|
|
|
|
Adjusted pretax
margin % (1)
|
|
2.2
|
|
2.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE:
|
|
|
|
|
|
|
|
|
Floorplan interest
expense
|
|
$
(25,168)
|
|
$
(22,603)
|
|
11.3
|
|
12.5
|
Floorplan
assistance
|
|
22,185
|
|
23,839
|
|
(6.9)
|
|
(6.7)
|
Net floorplan
(expense) income
|
|
$
(2,983)
|
|
$
1,236
|
|
(341.3)
|
|
(358.0)
|
Other interest
expense, net
|
|
$
(34,314)
|
|
$
(33,634)
|
|
2.0
|
|
2.4
|
|
|
|
|
|
|
|
|
|
|
(1)
|
See the section of
this release entitled "Non-GAAP Financial Measures" and the tables
attached hereto for information regarding certain selected items
that the Company believes impact comparability of financial results
between reporting periods, as well as for information regarding
non-GAAP financial measures and their reconciliation to the most
directly comparable measures as reported in accordance with U.S.
GAAP.
|
Group 1
Automotive, Inc.
|
Additional
Information - Same Store U.S. (1)
|
(Unaudited)
|
(Dollars in
thousands, except per unit amounts)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
% Increase/
(Decrease)
|
REVENUES:
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
1,140,004
|
|
$
1,185,994
|
|
(3.9)
|
Used vehicle retail
sales
|
|
535,010
|
|
566,676
|
|
(5.6)
|
Used vehicle
wholesale sales
|
|
66,221
|
|
61,222
|
|
8.2
|
Total used
|
|
601,231
|
|
627,898
|
|
(4.2)
|
Parts and
service
|
|
282,293
|
|
267,248
|
|
5.6
|
Finance, insurance
and other, net
|
|
93,879
|
|
94,601
|
|
(0.8)
|
Total
|
|
$
2,117,407
|
|
$
2,175,741
|
|
(2.7)
|
|
|
|
|
|
|
|
GROSS MARGIN
%:
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
5.0
|
|
5.1
|
|
|
Used vehicle retail
sales
|
|
6.8
|
|
7.0
|
|
|
Used vehicle
wholesale sales
|
|
0.4
|
|
0.0
|
|
|
Total used
|
|
6.1
|
|
6.3
|
|
|
Parts and
service
|
|
53.8
|
|
54.1
|
|
|
Finance, insurance
and other, net
|
|
100.0
|
|
100.0
|
|
|
Total
|
|
16.0
|
|
15.6
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT:
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
56,994
|
|
$
61,049
|
|
(6.6)
|
Used vehicle retail
sales
|
|
36,641
|
|
39,778
|
|
(7.9)
|
Used vehicle
wholesale sales
|
|
248
|
|
23
|
|
978.3
|
Total used
|
|
36,889
|
|
39,801
|
|
(7.3)
|
Parts and
service
|
|
151,781
|
|
144,602
|
|
5.0
|
Finance, insurance
and other, net
|
|
93,879
|
|
94,601
|
|
(0.8)
|
Total
|
|
$
339,543
|
|
$
340,053
|
|
(0.1)
|
|
|
|
|
|
|
|
UNITS
SOLD:
|
|
|
|
|
|
|
Retail new vehicles
sold
|
|
30,675
|
|
32,534
|
|
(5.7)
|
Retail used vehicles
sold
|
|
25,134
|
|
26,430
|
|
(4.9)
|
Wholesale used
vehicles sold
|
|
9,662
|
|
9,326
|
|
3.6
|
Total used
|
|
34,796
|
|
35,756
|
|
(2.7)
|
|
|
|
|
|
|
|
AVERAGE RETAIL
SALES PRICE:
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
37,164
|
|
$
36,454
|
|
1.9
|
Used vehicle
retail
|
|
$
21,286
|
|
$
21,441
|
|
(0.7)
|
|
|
|
|
|
|
|
GROSS PROFIT PER
UNIT SOLD:
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
1,858
|
|
$
1,876
|
|
(1.0)
|
Used vehicle retail
sales
|
|
1,458
|
|
1,505
|
|
(3.1)
|
Used vehicle
wholesale sales
|
|
26
|
|
2
|
|
1,200.0
|
Total used
|
|
1,060
|
|
1,113
|
|
(4.8)
|
Finance, insurance
and other, net (per retail unit)
|
|
$
1,682
|
|
$
1,604
|
|
4.9
|
|
|
|
|
|
|
|
OTHER:
|
|
|
|
|
|
|
SG&A
expenses
|
|
$
242,734
|
|
$
240,987
|
|
0.7
|
Adjusted SG&A
expenses(2)
|
|
$
242,091
|
|
$
237,968
|
|
1.7
|
SG&A as %
revenues
|
|
11.5
|
|
11.1
|
|
|
Adjusted SG&A as
% revenues (2)
|
|
11.4
|
|
10.9
|
|
|
SG&A as % gross
profit
|
|
71.5
|
|
70.9
|
|
|
Adjusted SG&A as
% gross profit (2)
|
|
71.3
|
|
70.0
|
|
|
Operating margin
%
|
|
4.0
|
|
4.0
|
|
|
Adjusted operating
margin % (2)
|
|
4.1
|
|
4.2
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
% Increase/
(Decrease)
|
REVENUES:
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
2,158,251
|
|
$
2,267,346
|
|
(4.8)
|
Used vehicle retail
sales
|
|
1,056,956
|
|
1,116,531
|
|
(5.3)
|
Used vehicle
wholesale sales
|
|
136,766
|
|
127,983
|
|
6.9
|
Total used
|
|
1,193,722
|
|
1,244,514
|
|
(4.1)
|
Parts and
service
|
|
553,453
|
|
527,383
|
|
4.9
|
Finance, insurance
and other, net
|
|
179,269
|
|
183,233
|
|
(2.2)
|
Total
|
|
$
4,084,695
|
|
$
4,222,476
|
|
(3.3)
|
|
|
|
|
|
|
|
GROSS MARGIN
%:
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
5.0
|
|
5.0
|
|
|
Used vehicle retail
sales
|
|
7.1
|
|
7.4
|
|
|
Used vehicle
wholesale sales
|
|
(0.1)
|
|
1.0
|
|
|
Total used
|
|
6.2
|
|
6.7
|
|
|
Parts and
service
|
|
53.8
|
|
54.4
|
|
|
Finance, insurance
and other, net
|
|
100.0
|
|
100.0
|
|
|
Total
|
|
16.2
|
|
15.8
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT:
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
108,198
|
|
$
114,285
|
|
(5.3)
|
Used vehicle retail
sales
|
|
74,576
|
|
82,131
|
|
(9.2)
|
Used vehicle
wholesale sales
|
|
(95)
|
|
1,264
|
|
(107.5)
|
Total used
|
|
74,481
|
|
83,395
|
|
(10.7)
|
Parts and
service
|
|
297,781
|
|
286,664
|
|
3.9
|
Finance, insurance
and other, net
|
|
179,269
|
|
183,233
|
|
(2.2)
|
Total
|
|
$
659,729
|
|
$
667,577
|
|
(1.2)
|
|
|
|
|
|
|
|
UNITS
SOLD:
|
|
|
|
|
|
|
Retail new vehicles
sold
|
|
58,173
|
|
62,596
|
|
(7.1)
|
Retail used vehicles
sold
|
|
50,063
|
|
52,787
|
|
(5.2)
|
Wholesale used
vehicles sold
|
|
19,643
|
|
19,439
|
|
1.0
|
Total used
|
|
69,706
|
|
72,226
|
|
(3.5)
|
|
|
|
|
|
|
|
AVERAGE RETAIL
SALES PRICE:
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
37,101
|
|
$
36,222
|
|
2.4
|
Used vehicle
retail
|
|
$
21,113
|
|
$
21,152
|
|
(0.2)
|
|
|
|
|
|
|
|
GROSS PROFIT PER
UNIT SOLD:
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
1,860
|
|
$
1,826
|
|
1.9
|
Used vehicle retail
sales
|
|
1,490
|
|
1,556
|
|
(4.2)
|
Used vehicle
wholesale sales
|
|
(5)
|
|
65
|
|
(107.7)
|
Total used
|
|
1,069
|
|
1,155
|
|
(7.4)
|
Finance, insurance
and other, net (per retail unit)
|
|
$
1,656
|
|
$
1,588
|
|
4.3
|
|
|
|
|
|
|
|
OTHER:
|
|
|
|
|
|
|
SG&A
expenses
|
|
$
478,685
|
|
$
482,012
|
|
(0.7)
|
Adjusted SG&A
expenses(2)
|
|
$
479,875
|
|
$
476,174
|
|
0.8
|
SG&A as %
revenues
|
|
11.7
|
|
11.4
|
|
|
Adjusted SG&A as
% revenues (2)
|
|
11.7
|
|
11.3
|
|
|
SG&A as % gross
profit
|
|
72.6
|
|
72.2
|
|
|
Adjusted SG&A as
% gross profit (2)
|
|
72.7
|
|
71.3
|
|
|
Operating margin
%
|
|
3.9
|
|
3.9
|
|
|
Adjusted operating
margin % (2)
|
|
3.8
|
|
4.0
|
|
|
|
|
|
|
|
|
|
|
(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)
|
See the section of
this release entitled "Non-GAAP Financial Measures" and the tables
attached hereto for information regarding certain selected items
that the Company believes impact comparability of financial results
between reporting periods, as well as for information regarding
non-GAAP financial measures and their reconciliation to the most
directly comparable measures as reported in accordance with U.S.
GAAP.
|
Group 1
Automotive, Inc.
|
Additional
Information - Same Store U.K. (1)
|
(Unaudited)
|
(Dollars in
thousands, except per unit amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
% Increase/
(Decrease)
|
|
Constant Currency
(2) % Increase/ (Decrease)
|
REVENUES:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$ 226,002
|
|
$ 259,904
|
|
(13.0)
|
|
(2.6)
|
Used vehicle retail
sales
|
|
121,817
|
|
120,775
|
|
0.9
|
|
13.1
|
Used vehicle
wholesale sales
|
|
29,604
|
|
32,669
|
|
(9.4)
|
|
1.5
|
Total used
|
|
151,421
|
|
153,444
|
|
(1.3)
|
|
10.6
|
Parts and
service
|
|
35,900
|
|
39,566
|
|
(9.3)
|
|
1.7
|
Finance, insurance
and other, net
|
|
9,394
|
|
9,513
|
|
(1.3)
|
|
10.6
|
Total
|
|
$ 422,717
|
|
$ 462,427
|
|
(8.6)
|
|
2.5
|
|
|
|
|
|
|
|
|
|
GROSS MARGIN
%:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
5.9
|
|
5.9
|
|
|
|
|
Used vehicle retail
sales
|
|
5.2
|
|
5.5
|
|
|
|
|
Used vehicle
wholesale sales
|
|
(2.2)
|
|
(0.3)
|
|
|
|
|
Total used
|
|
3.7
|
|
4.3
|
|
|
|
|
Parts and
service
|
|
57.7
|
|
56.3
|
|
|
|
|
Finance, insurance
and other, net
|
|
100.0
|
|
100.0
|
|
|
|
|
Total
|
|
11.6
|
|
11.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
13,424
|
|
$
15,342
|
|
(12.5)
|
|
(2.1)
|
Used vehicle retail
sales
|
|
6,335
|
|
6,694
|
|
(5.4)
|
|
6.3
|
Used vehicle
wholesale sales
|
|
(661)
|
|
(97)
|
|
(581.4)
|
|
(641.0)
|
Total used
|
|
5,674
|
|
6,597
|
|
(14.0)
|
|
(3.1)
|
Parts and
service
|
|
20,704
|
|
22,262
|
|
(7.0)
|
|
4.2
|
Finance, insurance
and other, net
|
|
9,394
|
|
9,513
|
|
(1.3)
|
|
10.6
|
Total
|
|
$
49,196
|
|
$
53,714
|
|
(8.4)
|
|
2.6
|
|
|
|
|
|
|
|
|
|
UNITS
SOLD:
|
|
|
|
|
|
|
|
|
Retail new vehicles
sold
|
|
7,630
|
|
7,741
|
|
(1.4)
|
|
|
Retail used vehicles
sold
|
|
5,329
|
|
4,860
|
|
9.7
|
|
|
Wholesale used
vehicles sold
|
|
3,883
|
|
3,879
|
|
0.1
|
|
|
Total used
|
|
9,212
|
|
8,739
|
|
5.4
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE RETAIL
SALES PRICE:
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
29,620
|
|
$
33,575
|
|
(11.8)
|
|
(1.1)
|
Used vehicle
retail
|
|
$
22,859
|
|
$
24,851
|
|
(8.0)
|
|
3.2
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT PER
UNIT SOLD:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
1,759
|
|
$
1,982
|
|
(11.3)
|
|
(0.7)
|
Used vehicle retail
sales
|
|
1,189
|
|
1,377
|
|
(13.7)
|
|
(3.1)
|
Used vehicle
wholesale sales
|
|
(170)
|
|
(25)
|
|
(580.0)
|
|
(640.2)
|
Total used
|
|
616
|
|
755
|
|
(18.4)
|
|
(8.1)
|
Finance, insurance
and other, net (per retail unit)
|
|
$
725
|
|
$
755
|
|
(4.0)
|
|
7.5
|
|
|
|
|
|
|
|
|
|
OTHER:
|
|
|
|
|
|
|
|
|
SG&A
expenses
|
|
$
40,612
|
|
$
41,306
|
|
(1.7)
|
|
10.2
|
Adjusted SG&A
expenses(2)
|
|
$
40,324
|
|
$
41,306
|
|
(2.4)
|
|
9.5
|
SG&A as %
revenues
|
|
9.6
|
|
8.9
|
|
|
|
|
Adjusted SG&A as
% revenues (2)
|
|
9.5
|
|
8.9
|
|
|
|
|
SG&A as % gross
profit
|
|
82.6
|
|
76.9
|
|
|
|
|
Adjusted SG&A as
% gross profit (2)
|
|
82.0
|
|
76.9
|
|
|
|
|
Operating margin
%
|
|
1.6
|
|
2.3
|
|
|
|
|
Adjusted operating
margin % (2)
|
|
1.7
|
|
2.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
% Increase/
(Decrease)
|
|
Constant Currency
(2) % Increase/ (Decrease)
|
REVENUES:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$ 448,307
|
|
$ 492,143
|
|
(8.9)
|
|
3.7
|
Used vehicle retail
sales
|
|
215,868
|
|
221,449
|
|
(2.5)
|
|
10.8
|
Used vehicle
wholesale sales
|
|
54,000
|
|
61,469
|
|
(12.2)
|
|
(0.2)
|
Total used
|
|
269,868
|
|
282,918
|
|
(4.6)
|
|
8.4
|
Parts and
service
|
|
64,119
|
|
69,672
|
|
(8.0)
|
|
4.6
|
Finance, insurance
and other, net
|
|
17,012
|
|
17,704
|
|
(3.9)
|
|
9.2
|
Total
|
|
$ 799,306
|
|
$ 862,437
|
|
(7.3)
|
|
5.4
|
|
|
|
|
|
|
|
|
|
GROSS MARGIN
%:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
5.8
|
|
5.8
|
|
|
|
|
Used vehicle retail
sales
|
|
5.1
|
|
5.4
|
|
|
|
|
Used vehicle
wholesale sales
|
|
(0.3)
|
|
0.8
|
|
|
|
|
Total used
|
|
4.0
|
|
4.4
|
|
|
|
|
Parts and
service
|
|
57.3
|
|
54.9
|
|
|
|
|
Finance, insurance
and other, net
|
|
100.0
|
|
100.0
|
|
|
|
|
Total
|
|
11.4
|
|
11.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
26,123
|
|
$
28,786
|
|
(9.3)
|
|
3.2
|
Used vehicle retail
sales
|
|
11,078
|
|
11,892
|
|
(6.8)
|
|
5.9
|
Used vehicle
wholesale sales
|
|
(162)
|
|
500
|
|
(132.4)
|
|
(132.2)
|
Total used
|
|
10,916
|
|
12,392
|
|
(11.9)
|
|
0.4
|
Parts and
service
|
|
36,763
|
|
38,220
|
|
(3.8)
|
|
9.3
|
Finance, insurance
and other, net
|
|
17,012
|
|
17,704
|
|
(3.9)
|
|
9.2
|
Total
|
|
$
90,814
|
|
$
97,102
|
|
(6.5)
|
|
6.3
|
|
|
|
|
|
|
|
|
|
UNITS
SOLD:
|
|
|
|
|
|
|
|
|
Retail new vehicles
sold
|
|
15,280
|
|
14,625
|
|
4.5
|
|
|
Retail used vehicles
sold
|
|
9,921
|
|
9,075
|
|
9.3
|
|
|
Wholesale used
vehicles sold
|
|
7,244
|
|
7,240
|
|
0.1
|
|
|
Total used
|
|
17,165
|
|
16,315
|
|
5.2
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE RETAIL
SALES PRICE:
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
29,339
|
|
$
33,651
|
|
(12.8)
|
|
(0.7)
|
Used vehicle
retail
|
|
$
21,759
|
|
$
24,402
|
|
(10.8)
|
|
1.4
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT PER
UNIT SOLD:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
1,710
|
|
$
1,968
|
|
(13.1)
|
|
(1.3)
|
Used vehicle retail
sales
|
|
1,117
|
|
1,310
|
|
(14.7)
|
|
(3.1)
|
Used vehicle
wholesale sales
|
|
(22)
|
|
69
|
|
(131.9)
|
|
(132.2)
|
Total used
|
|
636
|
|
760
|
|
(16.3)
|
|
(4.6)
|
Finance, insurance
and other, net (per retail unit)
|
|
$
675
|
|
$
747
|
|
(9.6)
|
|
2.7
|
|
|
|
|
|
|
|
|
|
OTHER:
|
|
|
|
|
|
|
|
|
SG&A
expenses
|
|
$
71,800
|
|
$
73,323
|
|
(2.1)
|
|
11.3
|
Adjusted SG&A
expenses(2)
|
|
$
71,512
|
|
$
72,762
|
|
(1.7)
|
|
11.7
|
SG&A as %
revenues
|
|
9.0
|
|
8.5
|
|
|
|
|
Adjusted SG&A as
% revenues (2)
|
|
8.9
|
|
8.4
|
|
|
|
|
SG&A as % gross
profit
|
|
79.1
|
|
75.5
|
|
|
|
|
Adjusted SG&A as
% gross profit (2)
|
|
78.7
|
|
74.9
|
|
|
|
|
Operating margin
%
|
|
2.0
|
|
2.4
|
|
|
|
|
Adjusted operating
margin % (2)
|
|
2.0
|
|
2.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Same store amounts
include the results for the identical months in each period
presented in the comparison, commencing with the first full month
we owned the dealership and, in the case of dispositions, ending
with the last full month we owned it. Same store results also
include the activities of our corporate office.
|
(2)
|
See the section of
this release entitled "Non-GAAP Financial Measures " and the tables
attached hereto for information regarding certain selected items
that the Company believes impact comparability of financial results
between reporting periods, as well as for information regarding
non-GAAP financial measures and their reconciliation to the most
directly comparable measures as reported in accordance with U.S.
GAAP.
|
Group 1
Automotive, Inc.
|
Additional
Information - Same Store Brazil (1)
|
(Unaudited)
|
(Dollars in
thousands, except per unit amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
% Increase/
(Decrease)
|
|
Constant Currency
(2) % Increase/ (Decrease)
|
REVENUES:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
72,041
|
|
$
70,868
|
|
1.7
|
|
(6.7)
|
Used vehicle retail
sales
|
|
20,874
|
|
15,677
|
|
33.2
|
|
22.3
|
Used vehicle
wholesale sales
|
|
2,419
|
|
618
|
|
291.4
|
|
260.4
|
Total used
|
|
23,293
|
|
16,295
|
|
42.9
|
|
31.4
|
Parts and
service
|
|
11,605
|
|
9,735
|
|
19.2
|
|
9.5
|
Finance, insurance
and other, net
|
|
2,065
|
|
1,512
|
|
36.6
|
|
25.4
|
Total
|
|
$ 109,004
|
|
$
98,410
|
|
10.8
|
|
1.7
|
|
|
|
|
|
|
|
|
|
GROSS MARGIN
%:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
5.7
|
|
5.4
|
|
|
|
|
Used vehicle retail
sales
|
|
7.2
|
|
7.1
|
|
|
|
|
Used vehicle
wholesale sales
|
|
8.2
|
|
7.3
|
|
|
|
|
Total used
|
|
7.3
|
|
7.1
|
|
|
|
|
Parts and
service
|
|
46.3
|
|
38.7
|
|
|
|
|
Finance, insurance
and other, net
|
|
100.0
|
|
100.0
|
|
|
|
|
Total
|
|
12.1
|
|
10.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
4,106
|
|
$
3,861
|
|
6.3
|
|
(2.4)
|
Used vehicle retail
sales
|
|
1,505
|
|
1,115
|
|
35.0
|
|
24.2
|
Used vehicle
wholesale sales
|
|
199
|
|
45
|
|
342.2
|
|
308.5
|
Total used
|
|
1,704
|
|
1,160
|
|
46.9
|
|
35.2
|
Parts and
service
|
|
5,368
|
|
3,769
|
|
42.4
|
|
30.6
|
Finance, insurance
and other, net
|
|
2,065
|
|
1,512
|
|
36.6
|
|
25.4
|
Total
|
|
$
13,243
|
|
$
10,302
|
|
28.5
|
|
18.0
|
|
|
|
|
|
|
|
|
|
UNITS
SOLD:
|
|
|
|
|
|
|
|
|
Retail new vehicles
sold
|
|
2,130
|
|
2,331
|
|
(8.6)
|
|
|
Retail used vehicles
sold
|
|
969
|
|
931
|
|
4.1
|
|
|
Wholesale used
vehicles sold
|
|
234
|
|
147
|
|
59.2
|
|
|
Total used
|
|
1,203
|
|
1,078
|
|
11.6
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE RETAIL
SALES PRICE:
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
33,822
|
|
$
30,402
|
|
11.2
|
|
2.1
|
Used vehicle
retail
|
|
$
21,542
|
|
$
16,839
|
|
27.9
|
|
17.5
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT PER
UNIT SOLD:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
1,928
|
|
$
1,656
|
|
16.4
|
|
6.8
|
Used vehicle retail
sales
|
|
1,553
|
|
1,198
|
|
29.6
|
|
19.3
|
Used vehicle
wholesale sales
|
|
850
|
|
306
|
|
177.8
|
|
156.6
|
Total used
|
|
1,416
|
|
1,076
|
|
31.6
|
|
21.1
|
Finance, insurance
and other, net (per retail unit)
|
|
$
666
|
|
$
464
|
|
43.5
|
|
32.0
|
|
|
|
|
|
|
|
|
|
OTHER:
|
|
|
|
|
|
|
|
|
SG&A
expenses
|
|
$
11,695
|
|
$
9,551
|
|
22.4
|
|
12.4
|
SG&A as %
revenues
|
|
10.7
|
|
9.7
|
|
|
|
|
SG&A as % gross
profit
|
|
88.3
|
|
92.7
|
|
|
|
|
Operating margin
%
|
|
1.1
|
|
0.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
%
Increase/
(Decrease)
|
|
Constant Currency
(2) % Increase/
(Decrease)
|
REVENUES:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$ 125,953
|
|
$ 128,078
|
|
(1.7)
|
|
(14.8)
|
Used vehicle retail
sales
|
|
41,279
|
|
32,077
|
|
28.7
|
|
10.5
|
Used vehicle
wholesale sales
|
|
5,430
|
|
1,060
|
|
412.3
|
|
344.4
|
Total used
|
|
46,709
|
|
33,137
|
|
41.0
|
|
21.1
|
Parts and
service
|
|
21,849
|
|
17,868
|
|
22.3
|
|
5.8
|
Finance, insurance
and other, net
|
|
3,755
|
|
2,583
|
|
45.4
|
|
26.0
|
Total
|
|
$ 198,266
|
|
$ 181,666
|
|
9.1
|
|
(5.6)
|
|
|
|
|
|
|
|
|
|
GROSS MARGIN
%:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
5.9
|
|
5.6
|
|
|
|
|
Used vehicle retail
sales
|
|
7.3
|
|
4.9
|
|
|
|
|
Used vehicle
wholesale sales
|
|
8.1
|
|
7.5
|
|
|
|
|
Total used
|
|
7.4
|
|
5.0
|
|
|
|
|
Parts and
service
|
|
46.0
|
|
39.1
|
|
|
|
|
Finance, insurance
and other, net
|
|
100.0
|
|
100.0
|
|
|
|
|
Total
|
|
12.4
|
|
10.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
7,395
|
|
$
7,211
|
|
2.6
|
|
(11.5)
|
Used vehicle retail
sales
|
|
3,019
|
|
1,585
|
|
90.5
|
|
67.1
|
Used vehicle
wholesale sales
|
|
438
|
|
80
|
|
447.5
|
|
376.9
|
Total used
|
|
3,457
|
|
1,665
|
|
107.6
|
|
81.9
|
Parts and
service
|
|
10,057
|
|
6,989
|
|
43.9
|
|
24.3
|
Finance, insurance
and other, net
|
|
3,755
|
|
2,583
|
|
45.4
|
|
26.0
|
Total
|
|
$
24,664
|
|
$
18,448
|
|
33.7
|
|
15.6
|
|
|
|
|
|
|
|
|
|
UNITS
SOLD:
|
|
|
|
|
|
|
|
|
Retail new vehicles
sold
|
|
3,709
|
|
4,538
|
|
(18.3)
|
|
|
Retail used vehicles
sold
|
|
1,897
|
|
1,979
|
|
(4.1)
|
|
|
Wholesale used
vehicles sold
|
|
481
|
|
351
|
|
37.0
|
|
|
Total used
|
|
2,378
|
|
2,330
|
|
2.1
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE RETAIL
SALES PRICE:
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
33,959
|
|
$
28,223
|
|
20.3
|
|
4.2
|
Used vehicle
retail
|
|
$
21,760
|
|
$
16,209
|
|
34.2
|
|
15.2
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT PER
UNIT SOLD:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
1,994
|
|
$
1,589
|
|
25.5
|
|
8.3
|
Used vehicle retail
sales
|
|
1,591
|
|
801
|
|
98.6
|
|
74.4
|
Used vehicle
wholesale sales
|
|
911
|
|
228
|
|
299.6
|
|
248.0
|
Total used
|
|
1,454
|
|
715
|
|
103.4
|
|
78.3
|
Finance, insurance
and other, net (per retail unit)
|
|
$
670
|
|
$
396
|
|
69.2
|
|
46.5
|
|
|
|
|
|
|
|
|
|
OTHER:
|
|
|
|
|
|
|
|
|
SG&A
expenses
|
|
$
21,947
|
|
$
17,429
|
|
25.9
|
|
8.8
|
SG&A as %
revenues
|
|
11.1
|
|
9.6
|
|
|
|
|
SG&A as % gross
profit
|
|
89.0
|
|
94.5
|
|
|
|
|
Operating margin
%
|
|
1.0
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Same store amounts
include the results for the identical months in each period
presented in the comparison, commencing with the first full month
we owned the dealership and, in the case of dispositions, ending
with the last full month we owned it. Same store results also
include the activities of our corporate office.
|
(2)
|
See the section of
this release entitled "Non-GAAP Financial Measures" and the tables
attached hereto for information regarding certain selected items
that the Company believes impact comparability of financial results
between reporting periods, as well as for information regarding
non-GAAP financial measures and their reconciliation to the most
directly comparable measures as reported in accordance with U.S.
GAAP.
|
Group 1
Automotive, Inc.
|
Additional
Information - Same Store Consolidated (1)
|
(Unaudited)
|
(Dollars in
thousands, except per unit amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
% Increase/
(Decrease)
|
|
Constant Currency
(2)
% Increase/
(Decrease)
|
REVENUES:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
1,438,047
|
|
$
1,516,766
|
|
(5.2)
|
|
(3.8)
|
Used vehicle retail
sales
|
|
677,701
|
|
703,128
|
|
(3.6)
|
|
(1.8)
|
Used vehicle
wholesale sales
|
|
98,244
|
|
94,509
|
|
4.0
|
|
7.5
|
Total used
|
|
775,945
|
|
797,637
|
|
(2.7)
|
|
(0.7)
|
Parts and
service
|
|
329,798
|
|
316,549
|
|
4.2
|
|
5.3
|
Finance, insurance
and other, net
|
|
105,338
|
|
105,626
|
|
(0.3)
|
|
0.6
|
Total
|
|
$
2,649,128
|
|
$
2,736,578
|
|
(3.2)
|
|
(1.7)
|
|
|
|
|
|
|
|
|
|
GROSS MARGIN
%:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
5.2
|
|
5.3
|
|
|
|
|
Used vehicle retail
sales
|
|
6.6
|
|
6.8
|
|
|
|
|
Used vehicle
wholesale sales
|
|
(0.2)
|
|
—
|
|
|
|
|
Total used
|
|
5.7
|
|
6.0
|
|
|
|
|
Parts and
service
|
|
53.9
|
|
53.9
|
|
|
|
|
Finance, insurance
and other, net
|
|
100.0
|
|
100.0
|
|
|
|
|
Total
|
|
15.2
|
|
14.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
74,524
|
|
$
80,252
|
|
(7.1)
|
|
(5.6)
|
Used vehicle retail
sales
|
|
44,481
|
|
47,587
|
|
(6.5)
|
|
(5.1)
|
Used vehicle
wholesale sales
|
|
(214)
|
|
(29)
|
|
(637.9)
|
|
(894.7)
|
Total used
|
|
44,267
|
|
47,558
|
|
(6.9)
|
|
(5.7)
|
Parts and
service
|
|
177,853
|
|
170,633
|
|
4.2
|
|
5.4
|
Finance, insurance
and other, net
|
|
105,338
|
|
105,626
|
|
(0.3)
|
|
0.6
|
Total
|
|
$
401,982
|
|
$
404,069
|
|
(0.5)
|
|
0.7
|
|
|
|
|
|
|
|
|
|
UNITS
SOLD:
|
|
|
|
|
|
|
|
|
Retail new vehicles
sold
|
|
40,435
|
|
42,606
|
|
(5.1)
|
|
|
Retail used vehicles
sold
|
|
31,432
|
|
32,221
|
|
(2.4)
|
|
|
Wholesale used
vehicles sold
|
|
13,779
|
|
13,352
|
|
3.2
|
|
|
Total used
|
|
45,211
|
|
45,573
|
|
(0.8)
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE RETAIL
SALES PRICE:
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
35,564
|
|
$
35,600
|
|
(0.1)
|
|
1.4
|
Used vehicle
retail
|
|
$
21,561
|
|
$
21,822
|
|
(1.2)
|
|
0.7
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT PER
UNIT SOLD:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
1,843
|
|
$
1,884
|
|
(2.2)
|
|
(0.5)
|
Used vehicle retail
sales
|
|
1,415
|
|
1,477
|
|
(4.2)
|
|
(2.8)
|
Used vehicle
wholesale sales
|
|
(16)
|
|
(2)
|
|
(700.0)
|
|
(863.9)
|
Total used
|
|
979
|
|
1,044
|
|
(6.2)
|
|
(4.9)
|
Finance, insurance
and other, net (per retail unit)
|
|
$
1,466
|
|
$
1,412
|
|
3.8
|
|
4.8
|
|
|
|
|
|
|
|
|
|
OTHER:
|
|
|
|
|
|
|
|
|
SG&A
expenses
|
|
$
295,041
|
|
$
291,844
|
|
1.1
|
|
2.5
|
Adjusted SG&A
expenses(2)
|
|
$
294,110
|
|
$
288,825
|
|
1.8
|
|
3.2
|
SG&A as %
revenues
|
|
11.1
|
|
10.7
|
|
|
|
|
Adjusted SG&A as
% revenues (2)
|
|
11.1
|
|
10.6
|
|
|
|
|
SG&A as % gross
profit
|
|
73.4
|
|
72.2
|
|
|
|
|
Adjusted SG&A as
% gross profit (2)
|
|
73.2
|
|
71.5
|
|
|
|
|
Operating margin
%
|
|
3.5
|
|
3.6
|
|
|
|
|
Adjusted operating
margin % (2)
|
|
3.6
|
|
3.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
% Increase/
(Decrease)
|
|
Constant Currency
(2)
% Increase/
(Decrease)
|
REVENUES:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
2,732,511
|
|
$
2,887,567
|
|
(5.4)
|
|
(3.8)
|
Used vehicle retail
sales
|
|
1,314,103
|
|
1,370,057
|
|
(4.1)
|
|
(2.4)
|
Used vehicle
wholesale sales
|
|
196,196
|
|
190,512
|
|
3.0
|
|
6.5
|
Total used
|
|
1,510,299
|
|
1,560,569
|
|
(3.2)
|
|
(1.3)
|
Parts and
service
|
|
639,421
|
|
614,923
|
|
4.0
|
|
4.9
|
Finance, insurance
and other, net
|
|
200,036
|
|
203,520
|
|
(1.7)
|
|
(0.8)
|
Total
|
|
$
5,082,267
|
|
$
5,266,579
|
|
(3.5)
|
|
(1.9)
|
|
|
|
|
|
|
|
|
|
GROSS MARGIN
%:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
5.2
|
|
5.2
|
|
|
|
|
Used vehicle retail
sales
|
|
6.7
|
|
7.0
|
|
|
|
|
Used vehicle
wholesale sales
|
|
0.1
|
|
1.0
|
|
|
|
|
Total used
|
|
5.9
|
|
6.2
|
|
|
|
|
Parts and
service
|
|
53.9
|
|
54.0
|
|
|
|
|
Finance, insurance
and other, net
|
|
100.0
|
|
100.0
|
|
|
|
|
Total
|
|
15.3
|
|
14.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
141,716
|
|
$
150,282
|
|
(5.7)
|
|
(4.0)
|
Used vehicle retail
sales
|
|
88,673
|
|
95,608
|
|
(7.3)
|
|
(6.0)
|
Used vehicle
wholesale sales
|
|
181
|
|
1,844
|
|
(90.2)
|
|
(93.3)
|
Total used
|
|
88,854
|
|
97,452
|
|
(8.8)
|
|
(7.7)
|
Parts and
service
|
|
344,601
|
|
331,873
|
|
3.8
|
|
4.9
|
Finance, insurance
and other, net
|
|
200,036
|
|
203,520
|
|
(1.7)
|
|
(0.8)
|
Total
|
|
$
775,207
|
|
$
783,127
|
|
(1.0)
|
|
0.1
|
|
|
|
|
|
|
|
|
|
UNITS
SOLD:
|
|
|
|
|
|
|
|
|
Retail new vehicles
sold
|
|
77,162
|
|
81,759
|
|
(5.6)
|
|
|
Retail used vehicles
sold
|
|
61,881
|
|
63,841
|
|
(3.1)
|
|
|
Wholesale used
vehicles sold
|
|
27,368
|
|
27,030
|
|
1.3
|
|
|
Total used
|
|
89,249
|
|
90,871
|
|
(1.8)
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE RETAIL
SALES PRICE:
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
35,413
|
|
$
35,318
|
|
0.3
|
|
1.9
|
Used vehicle
retail
|
|
$
21,236
|
|
$
21,460
|
|
(1.0)
|
|
0.7
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT PER
UNIT SOLD:
|
|
|
|
|
|
|
|
|
New vehicle retail
sales
|
|
$
1,837
|
|
$
1,838
|
|
(0.1)
|
|
1.7
|
Used vehicle retail
sales
|
|
1,433
|
|
1,498
|
|
(4.3)
|
|
(3.1)
|
Used vehicle
wholesale sales
|
|
7
|
|
68
|
|
(89.7)
|
|
(93.4)
|
Total used
|
|
996
|
|
1,072
|
|
(7.1)
|
|
(6.0)
|
Finance, insurance
and other, net (per retail unit)
|
|
$
1,439
|
|
$
1,398
|
|
2.9
|
|
3.9
|
|
|
|
|
|
|
|
|
|
OTHER:
|
|
|
|
|
|
|
|
|
SG&A
expenses
|
|
$
572,432
|
|
$
572,764
|
|
(0.1)
|
|
1.1
|
Adjusted SG&A
expenses(2)
|
|
$
573,334
|
|
$
566,365
|
|
1.2
|
|
2.4
|
SG&A as %
revenues
|
|
11.3
|
|
10.9
|
|
|
|
|
Adjusted SG&A as
% revenues (2)
|
|
11.3
|
|
10.8
|
|
|
|
|
SG&A as % gross
profit
|
|
73.8
|
|
73.1
|
|
|
|
|
Adjusted SG&A as
% gross profit (2)
|
|
74.0
|
|
72.3
|
|
|
|
|
Operating margin
%
|
|
3.5
|
|
3.5
|
|
|
|
|
Adjusted operating
margin % (2)
|
|
3.4
|
|
3.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Same store amounts
include the results for the identical months in each period
presented in the comparison, commencing with the first full month
we owned the dealership and, in the case of dispositions, ending
with the last full month we owned it. Same store results also
include the activities of our corporate office.
|
(2)
|
See the section of
this release entitled "Non-GAAP Financial Measures" and the tables
attached hereto for information regarding certain selected items
that the Company believes impact comparability of financial results
between reporting periods, as well as for information regarding
non-GAAP financial measures and their reconciliation to the most
directly comparable measures as reported in accordance with U.S.
GAAP.
|
Group 1
Automotive, Inc.
|
Reconciliation of
Certain Non-GAAP Financial Measures - U.S.
|
(Unaudited)
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
% Increase/
(Decrease)
|
SG&A
RECONCILIATION:
|
|
|
|
|
|
|
As
reported
|
$ 243,844
|
|
$ 245,389
|
|
(0.6)
|
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
Catastrophic
events
|
(643)
|
|
(2,769)
|
|
|
|
Loss on real
estate and dealership transactions
|
-
|
|
(250)
|
|
|
|
Adjusted SG&A
(1)
|
$ 243,201
|
|
$ 242,370
|
|
0.3
|
|
|
|
|
|
|
|
SG&A AS %
REVENUES:
|
|
|
|
|
|
|
Unadjusted
|
11.5
|
|
11.1
|
|
|
|
Adjusted
(1)
|
11.5
|
|
11.0
|
|
|
SG&A AS %
GROSS PROFIT:
|
|
|
|
|
|
|
Unadjusted
|
71.6
|
|
71.2
|
|
|
|
Adjusted
(1)
|
71.4
|
|
70.3
|
|
|
OPERATING MARGIN
%:
|
|
|
|
|
|
|
Unadjusted
|
4.0
|
|
4.0
|
|
|
|
Adjusted (1),
(2)
|
4.0
|
|
4.1
|
|
|
PRETAX MARGIN
%:
|
|
|
|
|
|
|
Unadjusted
|
2.6
|
|
2.8
|
|
|
|
Adjusted (1),
(2)
|
2.7
|
|
3.0
|
|
|
|
|
|
|
|
|
|
SAME STORE
SG&A RECONCILIATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
reported
|
$ 242,734
|
|
$ 240,987
|
|
0.7
|
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
Catastrophic
events
|
(643)
|
|
(2,769)
|
|
|
|
Loss on real
estate and dealership transactions
|
-
|
|
(250)
|
|
|
|
Adjusted Same Store
SG&A (1)
|
$ 242,091
|
|
$ 237,968
|
|
1.7
|
|
|
|
|
|
|
|
SAME STORE
SG&A AS % REVENUES:
|
|
|
|
|
|
|
Unadjusted
|
11.5
|
|
11.1
|
|
|
|
Adjusted
(1)
|
11.4
|
|
10.9
|
|
|
SAME STORE
SG&A AS % GROSS PROFIT:
|
|
|
|
|
|
|
Unadjusted
|
71.5
|
|
70.9
|
|
|
|
Adjusted
(1)
|
71.3
|
|
70.0
|
|
|
SAME STORE
OPERATING MARGIN %:
|
|
|
|
|
|
|
Unadjusted
|
4.0
|
|
4.0
|
|
|
|
Adjusted (1),
(3)
|
4.1
|
|
4.2
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended June 30,
|
|
|
2017
|
|
2016
|
|
% Increase/
(Decrease)
|
SG&A
RECONCILIATION:
|
|
|
|
|
|
|
As
reported
|
$ 480,117
|
|
$ 491,229
|
|
(2.3)
|
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
Catastrophic
events
|
(643)
|
|
(5,423)
|
|
|
|
Gain on real
estate and dealership transactions
|
-
|
|
680
|
|
|
|
Acquisition
costs
|
-
|
|
(30)
|
|
|
|
Legal settlements
(4)
|
1,833
|
|
-
|
|
|
|
Adjusted SG&A
(1)
|
$ 481,307
|
|
$ 486,456
|
|
(1.1)
|
|
|
|
|
|
|
|
SG&A AS %
REVENUES:
|
|
|
|
|
|
|
Unadjusted
|
11.7
|
|
11.5
|
|
|
|
Adjusted
(1)
|
11.8
|
|
11.3
|
|
|
SG&A AS % OF
GROSS PROFIT:
|
|
|
|
|
|
|
Unadjusted
|
72.6
|
|
72.5
|
|
|
|
Adjusted
(1)
|
72.8
|
|
71.8
|
|
|
OPERATING MARGIN
%:
|
|
|
|
|
|
|
Unadjusted
|
3.8
|
|
3.8
|
|
|
|
Adjusted (1),
(2)
|
3.8
|
|
4.0
|
|
|
PRETAX MARGIN
%:
|
|
|
|
|
|
|
Unadjusted
|
2.5
|
|
2.6
|
|
|
|
Adjusted (1),
(2)
|
2.5
|
|
2.8
|
|
|
|
|
|
|
|
|
|
SAME STORE
SG&A RECONCILIATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
reported
|
$ 478,685
|
|
$ 482,012
|
|
(0.7)
|
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
Catastrophic
events
|
(643)
|
|
(5,423)
|
|
|
|
Loss on real
estate and dealership transactions
|
-
|
|
(385)
|
|
|
|
Acquisition
costs
|
-
|
|
(30)
|
|
|
|
Legal settlements
(4)
|
1,833
|
|
-
|
|
|
|
Adjusted Same Store
SG&A (1)
|
$ 479,875
|
|
$ 476,174
|
|
0.8
|
|
|
|
|
|
|
|
SAME STORE
SG&A AS % REVENUES:
|
|
|
|
|
|
|
Unadjusted
|
11.7
|
|
11.4
|
|
|
|
Adjusted
(1)
|
11.7
|
|
11.3
|
|
|
SAME STORE
SG&A AS % GROSS PROFIT:
|
|
|
|
|
|
|
Unadjusted
|
72.6
|
|
72.2
|
|
|
|
Adjusted
(1)
|
72.7
|
|
71.3
|
|
|
SAME STORE
OPERATING MARGIN %:
|
|
|
|
|
|
|
Unadjusted
|
3.9
|
|
3.9
|
|
|
|
Adjusted (1),
(3)
|
3.8
|
|
4.0
|
|
|
|
|
|
|
|
|
|
(1)
|
See the section of this release entitled "Non-GAAP
Financial Measures " for information regarding non-GAAP financial
measures and certain selected items that the Company believes
impact comparability of financial results between reporting
periods.
|
(2)
|
Excludes the impact of SG&A reconciling items
above, as well as non-cash asset impairment charges of $1,024 and
$1,534 for the three and six months ended June 30, 2016,
respectively.
|
(3)
|
Excludes the impact of Same Store SG&A
reconciling items above, as well as non-cash asset impairment
charges of $1,024 and $1,534 for the three and six months
ended June 30, 2016, respectively.
|
(4)
|
For the six months ended June 30, 2017, the Company
recognized a net pre-tax gain related to a settlement with an OEM
of $1.8 million.
|
Group 1
Automotive, Inc.
|
Reconciliation of
Certain Non-GAAP Financial Measures - U.K.
|
(Unaudited)
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
% Increase/
(Decrease)
|
SG&A
RECONCILIATION:
|
|
|
|
|
|
|
As
reported
|
$ 42,456
|
|
$ 42,109
|
|
0.8
|
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
Acquisition
costs
|
(288)
|
|
-
|
|
|
|
Adjusted SG&A
(1)
|
$ 42,168
|
|
$ 42,109
|
|
0.1
|
|
|
|
|
|
|
|
SG&A AS %
REVENUES:
|
|
|
|
|
|
|
Unadjusted
|
9.7
|
|
9.0
|
|
|
|
Adjusted
(1)
|
9.6
|
|
9.0
|
|
|
SG&A AS %
GROSS PROFIT:
|
|
|
|
|
|
|
Unadjusted
|
83.4
|
|
77.5
|
|
|
|
Adjusted
(1)
|
82.8
|
|
77.5
|
|
|
OPERATING MARGIN
%
|
|
|
|
|
|
|
Unadjusted
|
1.5
|
|
2.2
|
|
|
|
Adjusted
(1)
|
1.6
|
|
2.2
|
|
|
PRETAX MARGIN
%:
|
|
|
|
|
|
|
Unadjusted
|
1.1
|
|
1.7
|
|
|
|
Adjusted
(1)
|
1.2
|
|
1.7
|
|
|
|
|
|
|
|
|
|
SAME STORE
SG&A RECONCILIATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
reported
|
$ 40,612
|
|
$ 41,306
|
|
(1.7)
|
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
Acquisition
costs
|
(288)
|
|
-
|
|
|
|
Adjusted Same Store
SG&A (1)
|
$ 40,324
|
|
$ 41,306
|
|
(2.4)
|
|
|
|
|
|
|
|
SAME STORE
SG&A AS % REVENUES:
|
|
|
|
|
|
|
Unadjusted
|
9.6
|
|
8.9
|
|
|
|
Adjusted
(1)
|
9.5
|
|
8.9
|
|
|
SAME STORE
SG&A AS % GROSS PROFIT:
|
|
|
|
|
|
|
Unadjusted
|
82.6
|
|
76.9
|
|
|
|
Adjusted
(1)
|
82.0
|
|
76.9
|
|
|
SAME STORE
OPERATING MARGIN %:
|
|
|
|
|
|
|
Unadjusted
|
1.6
|
|
2.3
|
|
|
|
Adjusted
(1)
|
1.7
|
|
2.3
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended June 30,
|
|
|
2017
|
|
2016
|
|
% Increase/
(Decrease)
|
SG&A
RECONCILIATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
reported
|
$ 84,080
|
|
$ 79,545
|
|
5.7
|
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
Acquisition
costs
|
(288)
|
|
(561)
|
|
|
|
Adjusted SG&A
(1)
|
$ 83,792
|
|
$ 78,984
|
|
6.1
|
|
|
|
|
|
|
|
SG&A AS %
REVENUES:
|
|
|
|
|
|
|
Unadjusted
|
9.5
|
|
8.8
|
|
|
|
Adjusted
(1)
|
9.4
|
|
8.8
|
|
|
SG&A AS % OF
GROSS PROFIT:
|
|
|
|
|
|
|
Unadjusted
|
83.1
|
|
78.7
|
|
|
|
Adjusted
(1)
|
82.8
|
|
78.1
|
|
|
OPERATING MARGIN
%:
|
|
|
|
|
|
|
Unadjusted
|
1.5
|
|
2.0
|
|
|
|
Adjusted
(1)
|
1.6
|
|
2.1
|
|
|
PRETAX MARGIN
%:
|
|
|
|
|
|
|
Unadjusted
|
1.2
|
|
1.5
|
|
|
|
Adjusted
(1)
|
1.2
|
|
1.6
|
|
|
|
|
|
|
|
|
|
SAME STORE
SG&A RECONCILIATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
reported
|
$ 71,800
|
|
$ 73,323
|
|
(2.1)
|
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
Acquisition
costs
|
(288)
|
|
(561)
|
|
|
|
Adjusted Same Store
SG&A (1)
|
$ 71,512
|
|
$ 72,762
|
|
(1.7)
|
|
|
|
|
|
|
|
SAME STORE
SG&A AS % REVENUES:
|
|
|
|
|
|
|
Unadjusted
|
9.0
|
|
8.5
|
|
|
|
Adjusted
(1)
|
8.9
|
|
8.4
|
|
|
SAME STORE
SG&A AS % GROSS PROFIT:
|
|
|
|
|
|
|
Unadjusted
|
79.1
|
|
75.5
|
|
|
|
Adjusted
(1)
|
78.7
|
|
74.9
|
|
|
SAME STORE
OPERATING MARGIN %:
|
|
|
|
|
|
|
Unadjusted
|
2.0
|
|
2.4
|
|
|
|
Adjusted
(1)
|
2.0
|
|
2.5
|
|
|
|
|
|
|
|
|
|
(1)
|
See the section of this release entitled "Non-GAAP
Financial Measures" for information regarding non-GAAP financial
measures and certain selected items that the Company believes
impact comparability of financial results between reporting
periods.
|
Group 1
Automotive, Inc.
|
Reconciliation of
Certain Non-GAAP Financial Measures - Brazil
|
(Unaudited)
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
Six Months
Ended June 30,
|
|
|
2017
|
|
2016
|
|
% Increase/
(Decrease)
|
SG&A
RECONCILIATION:
|
|
|
|
|
|
|
As
reported
|
$ 24,150
|
|
$ 21,913
|
|
10.2
|
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
Loss on real
estate and dealership transactions
|
-
|
|
(371)
|
|
|
|
Adjusted SG&A
(1)
|
$ 24,150
|
|
$ 21,542
|
|
12.1
|
|
|
|
|
|
|
|
SG&A AS %
REVENUES:
|
|
|
|
|
|
|
Unadjusted
|
11.4
|
|
10.8
|
|
|
|
Adjusted
(1)
|
11.4
|
|
10.7
|
|
|
SG&A AS % OF
GROSS PROFIT:
|
|
|
|
|
|
|
Unadjusted
|
92.5
|
|
105.2
|
|
|
|
Adjusted
(1)
|
92.5
|
|
103.4
|
|
|
OPERATING MARGIN
%:
|
|
|
|
|
|
|
Unadjusted
|
0.6
|
|
(1.0)
|
|
|
|
Adjusted (1),
(2)
|
0.6
|
|
(0.6)
|
|
|
PRETAX MARGIN
%:
|
|
|
|
|
|
|
Unadjusted
|
0.4
|
|
(1.1)
|
|
|
|
Adjusted (1),
(2)
|
0.4
|
|
(0.7)
|
|
|
|
|
|
|
|
|
|
(1)
|
See the section of
this release entitled "Non-GAAP Financial Measures" for information
regarding non-GAAP financial measures and certain selected items
that the Company believes impact comparability of financial results
between reporting periods.
|
(2)
|
Excludes the impact
of SG&A reconciling items above, as well as non-cash asset
impairment charges of $423 for the six months ended June 30,
2016.
|
Group 1
Automotive, Inc.
|
Reconciliation of
Certain Non-GAAP Financial Measures - CONSOLIDATED
|
(Unaudited)
|
(Dollars in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
% Increase/
(Decrease)
|
|
|
|
|
|
|
|
NET INCOME
RECONCILIATION:
|
|
|
|
|
|
|
As
reported
|
$
39,133
|
|
$
46,580
|
|
(16.0)
|
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
Catastrophic
events
|
|
|
|
|
|
|
Pre-tax
|
643
|
|
2,769
|
|
|
|
Tax
impact
|
(250)
|
|
(1,042)
|
|
|
|
Loss on real
estate and dealership transactions
|
|
|
|
|
|
|
Pre-tax
|
-
|
|
250
|
|
|
|
Tax
impact
|
-
|
|
(94)
|
|
|
|
Acquisition
costs
|
|
|
|
|
|
|
Pre-tax
|
288
|
|
-
|
|
|
|
Tax
impact
|
-
|
|
-
|
|
|
|
Non-cash asset
impairment
|
|
|
|
|
|
|
Pre-tax
|
-
|
|
1,024
|
|
|
|
Tax
impact
|
-
|
|
(391)
|
|
|
|
Foreign
deferred income tax benefit
|
|
|
|
|
|
|
Tax
impact
|
-
|
|
(1,686)
|
|
|
|
Adjusted net income
(1)
|
$
39,814
|
|
$
47,410
|
|
(16.0)
|
|
|
|
|
|
|
|
ADJUSTED NET
INCOME ATTRIBUTABLE TO DILUTED
|
|
|
|
|
|
|
COMMON SHARES
RECONCILIATION:
|
|
|
|
|
|
|
Adjusted net income
(1)
|
$
39,814
|
|
$
47,410
|
|
(16.0)
|
|
Less: Adjusted
earnings allocated to participating securities
|
1,413
|
|
1,918
|
|
(26.3)
|
|
Adjusted net income
available to diluted common shares (1)
|
$
38,401
|
|
$
45,492
|
|
(15.6)
|
|
|
|
|
|
|
|
DILUTED
INCOME PER COMMON SHARE RECONCILIATION:
|
|
|
|
|
|
As
reported
|
$
1.84
|
|
$
2.12
|
|
(13.2)
|
|
After-tax
adjustments:
|
|
|
|
|
|
|
Catastrophic events
|
0.02
|
|
0.08
|
|
|
|
Loss on real estate and dealership transactions
|
-
|
|
0.01
|
|
|
|
Acquisition costs
|
0.01
|
|
-
|
|
|
|
Non-cash asset impairment
|
-
|
|
0.03
|
|
|
|
Foreign deferred income tax benefit
|
-
|
|
(0.08)
|
|
|
|
Adjusted diluted
income per share (1)
|
$
1.87
|
|
$
2.16
|
|
(13.4)
|
|
|
|
|
|
|
|
SG&A
RECONCILIATION:
|
|
|
|
|
|
|
As
reported
|
$ 298,568
|
|
$ 299,022
|
|
(0.2)
|
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
Catastrophic events
|
(643)
|
|
(2,769)
|
|
|
|
Loss on real estate and dealership transactions
|
-
|
|
(250)
|
|
|
|
Acquisition costs
|
(288)
|
|
-
|
|
|
|
Adjusted SG&A
(1)
|
$ 297,637
|
|
$ 296,003
|
|
0.6
|
|
|
|
|
|
|
|
SG&A AS %
REVENUES:
|
|
|
|
|
|
|
Unadjusted
|
11.2
|
|
10.7
|
|
|
|
Adjusted
(1)
|
11.1
|
|
10.6
|
|
|
SG&A AS %
GROSS PROFIT:
|
|
|
|
|
|
|
Unadjusted
|
73.7
|
|
72.9
|
|
|
|
Adjusted
(1)
|
73.5
|
|
72.2
|
|
|
OPERATING MARGIN
%:
|
|
|
|
|
|
|
Unadjusted
|
3.5
|
|
3.5
|
|
|
|
Adjusted (1),
(2)
|
3.5
|
|
3.6
|
|
|
PRETAX MARGIN
%:
|
|
|
|
|
|
|
Unadjusted
|
2.3
|
|
2.5
|
|
|
|
Adjusted (1),
(2)
|
2.3
|
|
2.6
|
|
|
|
|
|
|
|
|
|
SAME STORE
SG&A RECONCILIATION:
|
|
|
|
|
|
|
As
reported
|
$ 295,041
|
|
$ 291,844
|
|
1.1
|
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
Catastrophic events
|
(643)
|
|
(2,769)
|
|
|
|
Loss on real estate and dealership transactions
|
-
|
|
(250)
|
|
|
|
Acquisition costs
|
(288)
|
|
-
|
|
|
|
Adjusted Same Store
SG&A (1)
|
$ 294,110
|
|
$ 288,825
|
|
1.8
|
|
|
|
|
|
|
|
SAME STORE
SG&A AS % REVENUES:
|
|
|
|
|
|
|
Unadjusted
|
11.1
|
|
10.7
|
|
|
|
Adjusted
(1)
|
11.1
|
|
10.6
|
|
|
SAME STORE
SG&A AS % GROSS PROFIT:
|
|
|
|
|
|
|
Unadjusted
|
73.4
|
|
72.2
|
|
|
|
Adjusted
(1)
|
73.2
|
|
71.5
|
|
|
SAME STORE
OPERATING MARGIN %:
|
|
|
|
|
|
|
Unadjusted
|
3.5
|
|
3.6
|
|
|
|
Adjusted (1),
(3)
|
3.6
|
|
3.8
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended June 30,
|
|
|
2017
|
|
2016
|
|
% Increase/
(Decrease)
|
NET INCOME
RECONCILIATION:
|
|
|
|
|
|
|
As
reported
|
$
73,072
|
|
$
80,871
|
|
(9.6)
|
|
Adjustments:
|
|
|
|
|
|
|
Catastrophic
events
|
|
|
|
|
|
|
Pre-tax
|
643
|
|
5,423
|
|
|
|
Tax
impact
|
(250)
|
|
(2,038)
|
|
|
|
Loss on real
estate and dealership transactions
|
|
|
|
|
|
|
Pre-tax
|
-
|
|
113
|
|
|
|
Tax
impact
|
-
|
|
255
|
|
|
|
Acquisition
costs
|
|
|
|
|
|
|
Pre-tax
|
288
|
|
591
|
|
|
|
Tax
impact
|
-
|
|
(11)
|
|
|
|
Legal settlements
(4)
|
|
|
|
|
|
|
Pre-tax
|
(1,833)
|
|
-
|
|
|
|
Tax
impact
|
696
|
|
-
|
|
|
|
Non-cash asset
impairment
|
|
|
|
|
|
|
Pre-tax
|
-
|
|
1,533
|
|
|
|
Tax
impact
|
-
|
|
(586)
|
|
|
|
Foreign
deferred income tax benefit
|
|
|
|
|
|
|
Tax
impact
|
-
|
|
(1,686)
|
|
|
|
Adjusted net income
(1)
|
$
72,616
|
|
$
84,465
|
|
(14.0)
|
|
|
|
|
|
|
|
ADJUSTED NET
INCOME ATTRIBUTABLE TO DILUTED
|
|
|
|
|
|
|
COMMON SHARES
RECONCILIATION:
|
|
|
|
|
|
|
Adjusted net income
(1)
|
$
72,616
|
|
$
84,465
|
|
(14.0)
|
|
Less: Adjusted
earnings allocated to participating securities
|
2,628
|
|
3,367
|
|
(21.9)
|
|
Adjusted net income
available to diluted common shares (1)
|
$
69,988
|
|
$
81,098
|
|
(13.7)
|
|
|
|
|
|
|
|
DILUTED
INCOME PER COMMON SHARE RECONCILIATION:
|
|
|
|
|
|
As
reported
|
$
3.42
|
|
$
3.57
|
|
(4.2)
|
|
After-tax
adjustments:
|
|
|
|
|
|
|
Catastrophic events
|
0.02
|
|
0.15
|
|
|
|
Loss on real estate and dealership transactions
|
-
|
|
0.02
|
|
|
|
Acquisition costs
|
0.01
|
|
0.02
|
|
|
|
Legal settlements
(4)
|
(0.05)
|
|
-
|
|
|
|
Non-cash asset impairment
|
-
|
|
0.04
|
|
|
|
Foreign deferred income tax benefit
|
-
|
|
(0.07)
|
|
|
|
Adjusted diluted
income per share (1)
|
$
3.40
|
|
$
3.73
|
|
(8.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SG&A
RECONCILIATION:
|
|
|
|
|
|
|
As
reported
|
$ 588,347
|
|
$ 592,687
|
|
(0.7)
|
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
Catastrophic events
|
(643)
|
|
(5,423)
|
|
|
|
Gain on real estate and dealership transactions
|
-
|
|
310
|
|
|
|
Acquisition costs
|
(288)
|
|
(591)
|
|
|
|
Legal settlements
(4)
|
1,833
|
|
-
|
|
|
|
Adjusted SG&A
(1)
|
$ 589,249
|
|
$ 586,983
|
|
0.4
|
|
|
|
|
|
|
|
SG&A AS %
REVENUES:
|
|
|
|
|
|
|
Unadjusted
|
11.3
|
|
11.0
|
|
|
|
Adjusted
(1)
|
11.4
|
|
10.9
|
|
|
SG&A AS % OF
GROSS PROFIT:
|
|
|
|
|
|
|
Unadjusted
|
74.6
|
|
74.2
|
|
|
|
Adjusted
(1)
|
74.7
|
|
73.4
|
|
|
OPERATING MARGIN
%:
|
|
|
|
|
|
|
Unadjusted
|
3.3
|
|
3.3
|
|
|
|
Adjusted (1),
(2)
|
3.3
|
|
3.5
|
|
|
PRETAX MARGIN
%:
|
|
|
|
|
|
|
Unadjusted
|
2.2
|
|
2.3
|
|
|
|
Adjusted (1),
(2)
|
2.2
|
|
2.4
|
|
|
|
|
|
|
|
|
|
SAME STORE
SG&A RECONCILIATION:
|
|
|
|
|
|
|
As
reported
|
$ 572,432
|
|
$ 572,764
|
|
(0.1)
|
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
Catastrophic events
|
(643)
|
|
(5,423)
|
|
|
|
Loss on real estate and dealership transactions
|
-
|
|
(385)
|
|
|
|
Acquisition costs
|
(288)
|
|
(591)
|
|
|
|
Legal settlements
(4)
|
1,833
|
|
-
|
|
|
|
Adjusted Same Store
SG&A (1)
|
$ 573,334
|
|
$ 566,365
|
|
1.2
|
|
|
|
|
|
|
|
SAME STORE
SG&A AS % REVENUES:
|
|
|
|
|
|
|
Unadjusted
|
11.3
|
|
10.9
|
|
|
|
Adjusted
(1)
|
11.3
|
|
10.8
|
|
|
SAME STORE
SG&A AS % GROSS PROFIT:
|
|
|
|
|
|
|
Unadjusted
|
73.8
|
|
73.1
|
|
|
|
Adjusted
(1)
|
74.0
|
|
72.3
|
|
|
SAME STORE
OPERATING MARGIN %:
|
|
|
|
|
|
|
Unadjusted
|
3.5
|
|
3.5
|
|
|
|
Adjusted (1),
(3)
|
3.4
|
|
3.7
|
|
|
|
|
|
|
|
|
|
(1)
|
See the section of
this release entitled "Non-GAAP Financial Measures " for
information regarding non-GAAP financial measures and certain
selected items that the Company believes impact comparability of
financial results between reporting periods.
|
(2)
|
Excludes the impact
of SG&A reconciling items above, as well as non-cash asset
impairment charges of $1,024 and $1,956 for the three and six
months ended June 30, 2016, respectively.
|
(3)
|
Excludes the impact
of Same Store SG&A reconciling items above, as well as non-cash
asset impairment charges of $1,024 and $1,534 for the three and six
months ended June 30, 2016, respectively.
|
(4)
|
For the six months
ended June 30, 2017, the Company recognized a net pre-tax gain
related to a settlement with an OEM of $1.8
million.
|
View original
content:http://www.prnewswire.com/news-releases/group-1-automotive-reports-second-quarter-2017-financial-results-300495085.html
SOURCE Group 1 Automotive, Inc.