Group 1 Automotive Announces First Quarter 2018 Financial Results

Date : 04/26/2018 @ 7:07AM
Source : PR Newswire (US)
Stock : Grp. 1 Automotive, Inc. (GPI)
Quote : 70.27  0.47 (0.67%) @ 4:02PM

Group 1 Automotive Announces First Quarter 2018 Financial Results

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HOUSTON, April 26, 2018 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), ("Group 1" or the "Company"), an international, Fortune 500 automotive retailer, today reported 2018 first quarter net income of $35.8 million, and diluted earnings per common share of $1.70. There were no non-GAAP adjustments for the first quarter of 2018.

In comparison, Group 1 generated $33.9 million of net income, $32.8 million of adjusted net income (a non-GAAP measure), $1.58 of diluted earnings per common share and $1.53 of adjusted diluted earnings per common share (a non-GAAP measure) for the first quarter of 2017. First quarter 2017 adjusted net income and diluted earnings per share exclude a non-core benefit of approximately $1.1 million after-tax, or $0.05 per share, related to a settlement with an Original Equipment Manufacturer (OEM). Reconciliations of non-GAAP financial measures are included in the attached financial tables.

"An acceleration of our U.S. business in March allowed us to deliver record first quarter revenue of $2.9 billion, which coupled with the benefits from the new U.S. tax law, drove record first quarter earnings per share of $1.70," said Earl J. Hesterberg, Group 1's president and chief executive officer. "We also received a major contribution from our U.K. operations despite an extremely weak new vehicle sales market, which declined 12.4 percent in the first quarter. We generated a 26 percent increase in overall gross profit for the quarter in the U.K. on a constant currency basis, driven by an impressive 5 percent increase in same store used vehicle unit sales and the efficient integration of two recent dealer group acquisitions. Additionally, we are pleased to report continued recovery in the Brazilian market, where Same Store total revenue increased 20 percent on a constant currency basis."

Consolidated Results for First Quarter 2018 (year-over-year comparable basis)
For ease of comparison, we have included constant currency metrics (a non-GAAP measure) both below (shown in parenthesis) and in the financial tables that follow:

  • Total revenue grew 13.5 percent (10.8 percent) to $2.9 billion.
  • Total gross profit grew 9.4 percent (7.5 percent), to $419.8 million.
  • New vehicle revenues increased 13.2 percent (10.4 percent) on 7.6 percent higher unit sales. New vehicle gross profit improved 9.0 percent (6.1 percent), to $75.4 million.
  • Retail used vehicle revenues increased 18.1 percent (15.0 percent) on 14.7 percent higher unit sales. Retail used vehicle gross profit decreased 3.4 percent (decreased 5.3 percent), to $43.5 million, with the decline more than offset by stronger wholesale used vehicle gross profit, which increased $1.6 million. Total used vehicle gross profit was up slightly, to $45.2 million.
  • Parts and service gross profit increased 8.4 percent (6.6 percent) on revenue growth of 9.3 percent (7.6 percent). Same Store parts and service gross profit increased 3.3 percent (1.9 percent) on revenue growth of 4.6 percent (3.3 percent).
  • Finance and Insurance (F&I) gross profit per retail unit (PRU) increased 4.7 percent (3.3 percent), to $1,451 and total F&I gross profit increased $15.5 million, or 16.0 percent (14.4 percent), reflecting strong new and used retail unit growth, as well as the improvement in PRU.
  • Selling, General and Administrative (SG&A) expenses as a percent of gross profit increased 170 basis points, to 77.3 percent. Compared with adjusted 2017 SG&A expense levels, SG&A as a percent of gross profit increased 130 basis points, to 77.3 percent. As disclosed in the Company's press release on March 19, 2018, included within the 2018 first quarter results are $3 million of costs associated with a one-time bonus to qualified U.S. employees and approximately $3 million of costs associated with the Company's new strategic initiatives.
  • Provision for income taxes declined 40.0 percent to $10.4 million, or 22.4 percent of income before income taxes, primarily reflecting the impact of the U.S. Tax Reform Bill that reduced the U.S. corporate income tax rate.

Segment Results for First Quarter 2018 (year-over-year comparable basis)

  • United States:
    The Company's U.S. operations accounted for 73.0 percent of total revenues and 80.0 percent of total gross profit. Total U.S. revenues were $2.1 billion, an increase of 6.1 percent, driven by increases in new vehicle revenue (up 7.0 percent), used retail (up 8.0 percent), parts and service (up 4.9 percent), and a 12.1 percent increase in F&I revenue. F&I gross profit PRU grew $81, or 4.9 percent per unit, to an all-time record of $1,718; and total gross profit grew 4.7 percent, to $335.7 million.

    New vehicle retail gross profit PRU decreased $9, to $1,853. Used vehicle retail gross profit PRU declined $296, to $1,226. This decline was significantly more pronounced in our luxury brands, and primarily in our certified pre-owned (CPO) business as we work with our OEM partners to absorb an increased supply of off-lease and loaner vehicles. Additionally, a portion of the decline relates to the continuing shift in consumer demand from cars to trucks. 

    SG&A expenses as a percent of gross profit increased 170 basis points to 75.4 percent and operating margin decreased 40 basis points to 3.3 percent. These costs include $3 million for the one-time bonus paid to our U.S. non-managerial staff, as well as approximately $3 million associated with our new initiatives in used and parts and service.

    "As we announced in March, we have launched several important strategic initiatives in our U.S. market that are designed to expand our used car sales and further strengthen our parts and service operations. Although it is still very early, we are encouraged by the initial results," said Daryl Kenningham, Group 1's president of U.S. operations. "Same Store used retail unit sales increased 7.7 percent in the U.S. during the quarter, the highest growth we have seen in ten quarters. In addition, we have installed our new work schedule in 65 of our U.S. dealerships as of March 31, 2018, and we are already seeing an improvement in retention and hiring, with a 17 percent increase in our service advisor headcount from the same period last year. Although these actions have added some costs in the near-term, we remain confident these investments will allow us to accelerate growth later this year and going forward."

  • United Kingdom:
    The Company's U.K. operations accounted for 23.1 percent of total revenues and 17.0 percent of total gross profit. Total U.K. revenues increased 46.7 percent (30.3 percent), to $660.5 million, driven by double-digit revenue growth across each business segment, despite the industry decreasing by over 12 percent. Total gross profit increased 42.1 percent (26.2 percent), to $71.5 million.

    SG&A expenses as a percent of gross profit increased 60 basis points to 83.4 percent and operating margin decreased 30 basis points to 1.3 percent.

  •  Brazil:
    The Company's Brazilian operations were approximately breakeven during the first quarter (traditionally the weakest quarter of the year) and accounted for 3.9 percent of total revenues and 3.0 percent of total gross profit. The Company's Same Store new vehicle revenue grew 23.5 percent on a constant currency basis, with units up 23.3 percent, which significantly outpaced the industry's unit sales increase of 14.7 percent. On a Same Store basis, total revenues grew 19.9 percent, driven by revenue growth of the aforementioned 23.5 percent in new vehicles, 16.6 percent in total used vehicles, 10.4 percent in parts & service, and 8.5 percent in F&I.

    SG&A expenses as a percent of gross profit improved 60 basis points to 93.5 percent.

Share Repurchase Authorization

For the first quarter of 2018, the Company repurchased 135,605 shares at an average price per common share of $67.83 for a total of $9.2 million. As of April 26, 2018, $40.4 million remains available under the Company's common stock share repurchase authorization.

Future repurchases may be made from time to time, based on market conditions, legal requirements and other corporate considerations, in the open market or in privately negotiated transactions, and subject to Board approval and covenant restrictions.

Corporate Development

As previously announced in 2018, the Company:

  • Acquired Toyota Alpha Trevo Automoveis Ltda in western São Paulo of Brazil in April 2018, which will operate as T-Drive Toyota Alphaville, and is expected to generate approximately $45 million in annualized revenues;
  • Acquired five Mercedes-Benz franchises and three Smart franchises northeast of London in the U.K. at the end of February 2018, which are expected to generate approximately $260 million in annualized revenues;
  • Acquired Audi El Paso and Subaru El Paso in January 2018 in West Texas, which are expected to generate approximately $65 million in annualized revenues; and
  • Opened a Land Rover franchise in January 2018 in Watford, a North London suburb in the U.K., which is expected to generate approximately $35 million in annualized revenues.

Year-to-date 2018, the Company has acquired a total of 12 franchises, which are expected to generate an estimated $405 million in annual revenues.

First Quarter 2018 Earnings Conference Call Details

Group 1's senior management will host a conference call today at 10 a.m. ET to discuss the first quarter financial results and the Company's outlook and strategy.

The conference call will be simulcast live on the Internet at www.group1auto.com, then click on 'Investor Relations' and then 'Events' or through this link: http://www.group1corp.com/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:

6796253


A telephonic replay will be available following the call through May 3, 2018 by dialing:

Domestic:

1-877-344-7529

International:

1-412-317-0088

Replay ID:

10118929

ABOUT GROUP 1 AUTOMOTIVE, INC.
Group 1 owns and operates 181 automotive dealerships, 239 franchises, and 48 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
Senior Vice President, Manufacturer Relations, Financial Services and Public Affairs
Group 1 Automotive, Inc.
713-647-5770 | pdelongchamps@group1auto.com 
or
Clint Woods
Pierpont Communications, Inc.
713-627-2223 | cwoods@piercom.com


Group 1 Automotive, Inc.

Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)








 Three Months Ended March 31, 


2018


2017


% Increase/
(Decrease)

REVENUES:






New vehicle retail sales

$              1,513,590


$ 1,337,213


13.2

Used vehicle retail sales

780,570


660,927


18.1

Used vehicle wholesale sales

104,029


104,157


(0.1)

Parts and service

349,515


319,698


9.3

Finance, insurance and other, net

112,322


96,834


16.0

Total revenues

2,860,026


2,518,829


13.5







COST OF SALES:






New vehicle retail sales

1,438,163


1,267,986


13.4

Used vehicle retail sales

737,075


615,922


19.7

Used vehicle wholesale sales

102,374


104,057


(1.6)

Parts and service

162,651


147,342


10.4

Total cost of sales

2,440,263


2,135,307


14.3







GROSS PROFIT

419,763


383,522


9.4







SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

324,347


289,779


11.9







DEPRECIATION AND AMORTIZATION EXPENSE

16,342


13,606


20.1







OPERATING INCOME

79,074


80,137


(1.3)







OTHER EXPENSE:






Floorplan interest expense

(14,087)


(11,942)


18.0

Other interest expense, net

(18,820)


(16,999)


10.7

INCOME BEFORE INCOME TAXES

46,167


51,196


(9.8)







PROVISION FOR INCOME TAXES

(10,353)


(17,257)


(40.0)







NET INCOME 

$                   35,814


$      33,939


5.5

Less: Earnings allocated to participating securities

$                     1,208


$        1,250


(3.4)

Earnings available to diluted common shares

$                   34,606


$      32,689


5.9

DILUTED EARNINGS PER SHARE

$                       1.70


$          1.58


7.6

Weighted average dilutive common shares outstanding

20,307


20,698


(1.9)

Weighted average participating securities

715


818


(12.6)

Total weighted average shares outstanding

21,022


21,516


(2.3)

 

Group 1 Automotive, Inc.

Consolidated Balance Sheets

(Dollars in thousands)








March 31,
2018


December 31,
2017


% Increase/
(Decrease)

 ASSETS: 

(Unaudited)





 CURRENT ASSETS: 






 Cash and cash equivalents 

$      33,090


$          28,787


14.9

 Contracts in transit and vehicle receivables, net 

297,885


306,433


(2.8)

 Accounts and notes receivable, net 

200,159


188,611


6.1

 Inventories, net 

1,804,176


1,763,293


2.3

 Prepaid expenses and other current assets 

77,888


42,062


85.2

 Total current assets 

2,413,198


2,329,186


3.6

 PROPERTY AND EQUIPMENT, net 

1,357,870


1,318,959


3.0

 GOODWILL AND INTANGIBLE FRANCHISE RIGHTS 

1,255,736


1,198,666


4.8

 OTHER ASSETS 

31,674


24,254


30.6

 Total assets 

$ 5,058,478


$     4,871,065


3.8







 LIABILITIES AND STOCKHOLDERS' EQUITY: 






 CURRENT LIABILITIES: 






 Floorplan notes payable - credit facility and other 

$ 1,199,741


$     1,240,695


(3.3)

 Offset account related to floorplan notes payable - credit facility 

(74,359)


(86,547)


(14.1)

 Floorplan notes payable - manufacturer affiliates 

420,315


397,183


5.8

 Offset account related to floorplan notes payable - manufacturer affiliates 

(24,000)


(22,500)


6.7

 Current maturities of long-term debt and short-term financing 

58,195


77,609


(25.0)

 Current liabilities from interest rate risk management activities 

1,177


1,996


(41.0)

 Accounts payable 

491,841


412,981


19.1

 Accrued expenses 

194,248


177,070


9.7

 Total current liabilities 

2,267,158


2,198,487


3.1

 5.00% SENIOR NOTES (principal of $550,000 at March 31, 2018 and December 31,
2017, respectively) 

542,474


542,063


0.1

 5.25% SENIOR NOTES (principal of $300,000 at March 31, 2018 and December 31,
2017, respectively) 

296,295


296,151


-

 ACQUISITION LINE 

28,035


26,988


3.9

 REAL ESTATE RELATED AND OTHER LONG-TERM DEBT, net of current maturities 

447,540


405,950


10.2

 CAPITAL LEASE OBLIGATIONS RELATED TO REAL ESTATE, net of current maturities 

62,426


47,032


32.7

 DEFERRED INCOME TAXES 

134,800


124,404


8.4

 LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES 

3,512


8,583


(59.1)

 OTHER LIABILITIES 

98,159


97,125


1.1

 STOCKHOLDERS' EQUITY: 






 Common stock 

255


255


-

 Additional paid-in capital 

286,244


291,461


(1.8)

 Retained earnings 

1,288,052


1,246,323


3.3

 Accumulated other comprehensive loss 

(105,950)


(123,226)


(14.0)

 Treasury stock 

(290,522)


(290,531)


-

 Total stockholders' equity 

1,178,079


1,124,282


4.8

 Total liabilities and stockholders' equity 

$ 5,058,478


$     4,871,065


3.8







 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)








Three Months Ended



March 31,



2018 (%)


2017 (%)

NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:




Region

Geographic Market




United States

Texas

34.9


34.8


California

6.5


7.9


Oklahoma

6.0


6.4


Massachusetts

4.8


4.2


Georgia

4.3


4.5


Florida

2.5


2.5


Louisiana

1.8


2.1


New Hampshire

1.8


1.8


New Jersey

1.6


1.6


South Carolina

1.5


1.3


Kansas

1.4


1.6


Mississippi

1.2


1.5


Alabama

0.7


1.2


Maryland

0.5


0.4


New Mexico 

0.1




69.6


71.8






International

United Kingdom

25.4


23.6


Brazil

5.0


4.6



100.0


100.0






NEW VEHICLE UNIT SALES BRAND MIX:




Toyota/Scion/Lexus

24.1


23.2

Volkswagen/Audi/Porsche

13.6


12.5

BMW/MINI

12.7


14.3

Ford/Lincoln

11.3


12.8

Honda/Acura

9.5


9.1

Nissan

6.7


8.2

Chevrolet/GMC/Buick/Cadillac

5.8


6.7

Mercedes-Benz/smart/Sprinter

4.7


3.9

Chrysler/Dodge/Jeep/RAM

4.1


3.7

Hyundai/Kia

3.9


3.4

Other

3.6


2.2



100.0


100.0

 

Group 1 Automotive, Inc.

Additional Information - U.S.

(Unaudited)

(Dollars in thousands, except per unit amounts)








Three Months Ended March 31,


2018


2017


% Increase/
(Decrease)

REVENUES:






New vehicle retail sales

$ 1,089,953


$ 1,018,249


7.0

Used vehicle retail sales

563,830


521,947


8.0

Used vehicle wholesale sales

54,002


70,545


(23.5)

Total used

617,832


592,492


4.3

Parts and service

284,514


271,159


4.9

Finance, insurance and other, net

96,187


85,819


12.1

Total

$ 2,088,486


$ 1,967,719


6.1







GROSS MARGIN %:






New vehicle retail sales

4.9


5.0



Used vehicle retail sales

5.9


7.3



Used vehicle wholesale sales

2.7


(0.5)



Total used

5.7


6.3



Parts and service

53.2


53.8



Finance, insurance and other, net

100.0


100.0



Total

16.1


16.3









GROSS PROFIT:






New vehicle retail sales

$      53,135


$      51,209


3.8

Used vehicle retail sales

33,485


37,932


(11.7)

Used vehicle wholesale sales

1,434


(362)


496.1

Total used

34,919


37,570


(7.1)

Parts and service

151,444


145,998


3.7

Finance, insurance and other, net

96,187


85,819


12.1

Total 

$    335,685


$    320,596


4.7







UNITS SOLD:






Retail new vehicles sold

28,673


27,498


4.3

Retail used vehicles sold

27,310


24,929


9.6

Wholesale used vehicles sold

9,383


9,981


(6.0)

Total used

36,693


34,910


5.1







AVERAGE RETAIL SALES PRICE:






New vehicle retail

$      38,013


$      37,030


2.7

Used vehicle retail

$      20,646


$      20,937


(1.4)







GROSS PROFIT PER UNIT SOLD:






New vehicle retail sales

$        1,853


$        1,862


(0.5)

Used vehicle retail sales

1,226


1,522


(19.4)

Used vehicle wholesale sales

153


(36)


525.0

Total used

952


1,076


(11.5)

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

$        1,718


$        1,637


4.9







OTHER: 






SG&A expenses

$    252,941


$    236,273


7.1

Adjusted SG&A expenses (1)

$    252,941


$    238,106


6.2

SG&A as % revenues

12.1


12.0



Adjusted SG&A as % revenues (1)

12.1


12.1



SG&A as % gross profit

75.4


73.7



Adjusted SG&A as % gross profit (1)

75.4


74.3



Operating margin %

3.3


3.7



Adjusted operating margin % (1)

3.3


3.6



Pretax margin %

1.9


2.3



Adjusted pretax margin %(1)

1.9


2.2









INTEREST EXPENSE:






Floorplan interest expense

$    (12,337)


$    (10,878)


13.4

Floorplan assistance

10,750


10,284


4.5

Net floorplan expense

$      (1,587)


$         (594)


167.2

Other interest expense, net

$    (17,016)


$    (16,272)


4.6







(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 March 31,


2018


2017


% Increase/
(Decrease)


Constant Currency (1)
% Increase/ (Decrease)

REVENUES:








New vehicle retail sales

$   354,404


$   258,640


37.0


21.6

Used vehicle retail sales

192,549


115,369


66.9


48.5

Used vehicle wholesale sales

46,185


30,509


51.4


34.7

Total used

238,734


145,878


63.7


45.7

Parts and service

53,141


36,781


44.5


28.6

Finance, insurance and other, net

14,263


9,028


58.0


40.3

Total

$   660,542


$   450,327


46.7


30.3









GROSS MARGIN %:








New vehicle retail sales

5.2


5.6





Used vehicle retail sales

4.4


4.7





Used vehicle wholesale sales

0.2


0.7





Total used

3.6


3.9





Parts and service

56.5


57.7





Finance, insurance and other, net

100.0


100.0





Total

10.8


11.2













GROSS PROFIT:








New vehicle retail sales

$     18,511


$     14,401


28.5


13.9

Used vehicle retail sales

8,560


5,429


57.7


40.3

Used vehicle wholesale sales

70


211


(66.8)


(72.7)

Total used

8,630


5,640


53.0


36.1

Parts and service

30,047


21,225


41.6


26.0

Finance, insurance and other, net

14,263


9,028


58.0


40.3

Total 

$     71,451


$     50,294


42.1


26.2









UNITS SOLD:








Retail new vehicles sold

10,450


9,018


15.9



Retail used vehicles sold

7,835


5,611


39.6



Wholesale used vehicles sold

5,587


4,169


34.0



Total used

13,422


9,780


37.2











AVERAGE RETAIL SALES PRICE:








New vehicle retail

$     33,914


$     28,680


18.2


4.9

Used vehicle retail

$     24,575


$     20,561


19.5


6.4









GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$       1,771


$       1,597


10.9


(1.7)

Used vehicle retail sales

1,093


968


12.9


0.5

Used vehicle wholesale sales

13


51


(74.5)


(79.6)

Total used

643


577


11.4


(0.8)

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

$          780


$          617


26.4


12.3









OTHER: 








SG&A expenses

$     59,596


$     41,624


43.2


27.4

SG&A as % revenues

9.0


9.2





SG&A as % gross profit

83.4


82.8





Operating margin %

1.3


1.6





Pretax margin %

0.9


1.2













INTEREST EXPENSE:








Floorplan interest expense

$      (1,514)


$      (1,034)


46.4


30.4

Floorplan assistance

285


229


24.5


10.6

Net floorplan expense

$      (1,229)


$         (805)


52.7


36.0

Other interest expense, net

$      (1,532)


$         (581)


163.7


135.6









(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 March 31,


2018


2017


% Increase/
(Decrease)


Constant Currency (1)
% Increase/ (Decrease)

REVENUES:








New vehicle retail sales

$   69,233


$   60,324


14.8


18.8

Used vehicle retail sales

24,191


23,611


2.5


5.9

Used vehicle wholesale sales

3,842


3,103


23.8


28.4

Total used

28,033


26,714


4.9


8.5

Parts and service

11,860


11,758


0.9


4.1

Finance, insurance and other, net

1,872


1,987


(5.8)


(2.4)

Total

$ 110,998


$ 100,783


10.1


13.9









GROSS MARGIN %:








New vehicle retail sales

5.5


6.0





Used vehicle retail sales

6.0


7.0





Used vehicle wholesale sales

3.9


8.1





Total used

5.7


7.1





Parts and service

45.3


43.7





Finance, insurance and other, net

100.0


100.0





Total

11.4


12.5













GROSS PROFIT:








New vehicle retail sales

$     3,781


$     3,617


4.5


8.2

Used vehicle retail sales

1,450


1,644


(11.8)


(8.9)

Used vehicle wholesale sales

151


251


(39.8)


(37.4)

Total used

1,601


1,895


(15.5)


(12.7)

Parts and service

5,373


5,133


4.7


8.1

Finance, insurance and other, net

1,872


1,987


(5.8)


(2.4)

Total 

$   12,627


$   12,632


-


3.4









UNITS SOLD:








Retail new vehicles sold

2,067


1,774


16.5



Retail used vehicles sold

1,071


1,026


4.4



Wholesale used vehicles sold

357


379


(5.8)



Total used

1,428


1,405


1.6











AVERAGE RETAIL SALES PRICE:








New vehicle retail

$   33,494


$   34,005


(1.5)


2.0

Used vehicle retail

$   22,587


$   23,013


(1.8)


1.5









GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$     1,829


$     2,039


(10.3)


(7.1)

Used vehicle retail sales

1,354


1,602


(15.5)


(12.7)

Used vehicle wholesale sales

423


662


(36.1)


(33.5)

Total used

1,121


1,349


(16.9)


(14.1)

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

$        597


$        710


(15.9)


(12.9)









OTHER: 








SG&A expenses

$   11,810


$   11,882


(0.6)


2.6

SG&A as % revenues

10.6


11.8





SG&A as % gross profit

93.5


94.1





Operating margin %

0.4


0.4





Pretax margin %

(0.1)


0.2













INTEREST EXPENSE:








Floorplan interest expense

$      (236)


$        (30)


686.7


722.5

Floorplan assistance



-


-

Net floorplan expense

$      (236)


$        (30)


686.7


722.5

Other interest expense, net

$      (272)


$      (146)


86.3


91.0









(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 March 31,


2018


2017


% Increase/
(Decrease)


Constant Currency %(1)
Increase/ (Decrease)

REVENUES:








New vehicle retail sales

$ 1,513,590


$ 1,337,213


13.2


10.4

Used vehicle retail sales

780,570


660,927


18.1


15.0

Used vehicle wholesale sales

104,029


104,157


(0.1)


(4.9)

Total used

884,599


765,084


15.6


12.3

Parts and service

349,515


319,698


9.3


7.6

Finance, insurance and other, net

112,322


96,834


16.0


14.4

Total

$ 2,860,026


$ 2,518,829


13.5


10.8









GROSS MARGIN %:








New vehicle retail sales

5.0


5.2





Used vehicle retail sales

5.6


6.8





Used vehicle wholesale sales

1.6


0.1





Total used

5.1


5.9





Parts and service

53.5


53.9





Finance, insurance and other, net

100.0


100.0





Total

14.7


15.2













GROSS PROFIT:








New vehicle retail sales

$      75,427


$      69,227


9.0


6.1

Used vehicle retail sales

43,495


45,005


(3.4)


(5.3)

Used vehicle wholesale sales

1,655


100


1,555.0


1,549.1

Total used

45,150


45,105


0.1


(1.9)

Parts and service

186,864


172,356


8.4


6.6

Finance, insurance and other, net

112,322


96,834


16.0


14.4

Total 

$    419,763


$    383,522


9.4


7.5









UNITS SOLD:








Retail new vehicles sold

41,190


38,290


7.6



Retail used vehicles sold

36,216


31,566


14.7



Wholesale used vehicles sold

15,327


14,529


5.5



Total used

51,543


46,095


11.8











AVERAGE RETAIL SALES PRICE:








New vehicle retail

$      36,747


$      34,923


5.2


2.6

Used vehicle retail

$      21,553


$      20,938


2.9


0.3









GROSS PROFIT PER UNIT SOLD:








New vehicle retail sales

$        1,831


$        1,808


1.3


(1.4)

Used vehicle retail sales

1,201


1,426


(15.8)


(17.5)

Used vehicle wholesale sales

108


7


1,442.9


1,463.3

Total used

876


979


(10.5)


(12.3)

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

$        1,451


$        1,386


4.7


3.3









OTHER: 








SG&A expenses

$    324,347


$    289,779


11.9


9.8

Adjusted SG&A expenses (1)

$    324,347


$    291,612


11.2


9.1

SG&A as % revenues

11.3


11.5





Adjusted SG&A as % revenues (1)

11.3


11.6





SG&A as % gross profit

77.3


75.6





Adjusted SG&A as % gross profit (1)

77.3


76.0





Operating margin %

2.8


3.2





Adjusted operating margin % (1)

2.8


3.1





Pretax margin %

1.6


2.0





Adjusted pretax margin % (1)

1.6


2.0













INTEREST EXPENSE:








Floorplan interest expense

$    (14,087)


$    (11,942)


18.0


16.7

Floorplan assistance

11,035


10,513


5.0


4.7

Net floorplan expense

$      (3,052)


$      (1,429)


113.6


104.9

Other interest expense, net

$    (18,820)


$    (16,999)


10.7


9.8









(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 March 31,


2018


2017


% Increase/
(Decrease)

REVENUES:






New vehicle retail sales

$ 1,068,221


$ 1,018,249


4.9

Used vehicle retail sales

553,733


521,945


6.1

Used vehicle wholesale sales

52,779


70,544


(25.2)

Total used

606,512


592,489


2.4

Parts and service

280,403


271,159


3.4

Finance, insurance and other, net

94,151


85,391


10.3

Total 

$ 2,049,287


$ 1,967,288


4.2







GROSS MARGIN %:






New vehicle retail sales

4.9


5.0



Used vehicle retail sales

6.0


7.3



Used vehicle wholesale sales

2.7


(0.5)



Total used

5.7


6.3



Parts and service

53.1


53.8



Finance, insurance and other, net

100.0


100.0



Total

16.1


16.3









GROSS PROFIT:






New vehicle retail sales

$      52,071


$      51,207


1.7

Used vehicle retail sales

33,028


37,931


(12.9)

Used vehicle wholesale sales

1,425


(345)


513.0

Total used

34,453


37,586


(8.3)

Parts and service

148,910


145,998


2.0

Finance, insurance and other, net

94,151


85,391


10.3

Total 

$    329,585


$    320,182


2.9







UNITS SOLD:






Retail new vehicles sold

28,150


27,498


2.4

Retail used vehicles sold

26,858


24,929


7.7

Wholesale used vehicles sold

9,223


9,981


(7.6)

Total used

36,081


34,910


3.4







AVERAGE RETAIL SALES PRICE:






New vehicle retail

$      37,947


$      37,030


2.5

Used vehicle retail

$      20,617


$      20,937


(1.5)







GROSS PROFIT PER UNIT SOLD:






New vehicle retail sales

$        1,850


$        1,862


(0.6)

Used vehicle retail sales

1,230


1,522


(19.2)

Used vehicle wholesale sales

155


(35)


542.9

Total used

955


1,077


(11.3)

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

$        1,712


$        1,629


5.1







OTHER: 






SG&A expenses

$    247,611


$    236,051


4.9

Adjusted SG&A expenses(2)

$    247,611


$    237,884


4.1

SG&A as % revenues

12.1


12.0



Adjusted SG&A as % revenues (2)

12.1


12.1



SG&A as % gross profit

75.1


73.7



Adjusted SG&A as % gross profit (2)

75.1


74.3



Operating margin %

3.4


3.7



Adjusted operating margin % (2)

3.4


3.6









(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 March 31,



2018


2017


% Increase/
(Decrease)


Constant Currency (2)
% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$ 270,060


$ 256,703


5.2


(6.6)

Used vehicle retail sales


146,240


114,806


27.4


13.4

Used vehicle wholesale sales


36,073


30,415


18.6


5.6

Total used


182,313


145,221


25.5


11.7

Parts and service


41,225


36,446


13.1


0.7

Finance, insurance and other, net


10,635


8,973


18.5


5.3

Total 


$ 504,233


$ 447,343


12.7


0.2










GROSS MARGIN %:









New vehicle retail sales


5.4


5.6





Used vehicle retail sales


4.6


4.7





Used vehicle wholesale sales


(0.1)


0.7





Total used


3.6


3.9





Parts and service


57.0


57.8





Finance, insurance and other, net


100.0


100.0





Total


11.0


11.2














GROSS PROFIT:









New vehicle retail sales


$   14,584


$   14,296


2.0


(9.6)

Used vehicle retail sales


6,671


5,383


23.9


10.3

Used vehicle wholesale sales


(50)


212


(123.6)


(123.5)

Total used


6,621


5,595


18.3


5.2

Parts and service


23,505


21,073


11.5


(0.7)

Finance, insurance and other, net


10,635


8,973


18.5


5.3

Total 


$   55,345


$   49,937


10.8


(1.5)










UNITS SOLD:









Retail new vehicles sold


8,012


8,904


(10.0)



Retail used vehicles sold


5,864


5,578


5.1



Wholesale used vehicles sold


4,333


4,142


4.6



Total used


10,197


9,720


4.9












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$   33,707


$   28,830


16.9


3.8

Used vehicle retail


$   24,939


$   20,582


21.2


7.9










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$     1,820


$     1,606


13.3


0.5

Used vehicle retail sales


1,138


965


17.9


4.9

Used vehicle wholesale sales


(12)


51


(123.5)


(122.4)

Total used


649


576


12.7


0.3

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


$        766


$        620


23.5


9.9










OTHER: 









SG&A expenses


$   46,816


$   40,929


14.4


1.8

SG&A as % revenues


9.3


9.1





SG&A as % gross profit


84.6


82.0





Operating margin %


1.2


1.6














(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 March 31,



2018


2017


% Increase/
(Decrease)


Constant Currency (2)
% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$   69,233


$ 58,086


19.2


23.5

Used vehicle retail sales


24,191


21,801


11.0


14.9

Used vehicle wholesale sales


3,842


3,087


24.5


29.0

Total used


28,033


24,888


12.6


16.6

Parts and service


11,860


11,098


6.9


10.4

Finance, insurance and other, net


1,872


1,790


4.6


8.5

Total 


$ 110,998


$ 95,862


15.8


19.9










GROSS MARGIN %:









New vehicle retail sales


5.5


6.1





Used vehicle retail sales


6.0


7.3





Used vehicle wholesale sales


3.9


8.2





Total used


5.7


7.4





Parts and service


45.3


45.4





Finance, insurance and other, net


100.0


100.0





Total


11.4


12.7














GROSS PROFIT:









New vehicle retail sales


$     3,781


$   3,520


7.4


11.3

Used vehicle retail sales


1,452


1,591


(8.7)


(5.7)

Used vehicle wholesale sales


151


252


(40.1)


(37.4)

Total used


1,603


1,843


(13.0)


(10.0)

Parts and service


5,373


5,042


6.6


10.1

Finance, insurance and other, net


1,872


1,790


4.6


8.5

Total 


$   12,629


$ 12,195


3.6


7.1










UNITS SOLD:









Retail new vehicles sold


2,067


1,676


23.3



Retail used vehicles sold


1,071


981


9.2



Wholesale used vehicles sold


357


269


32.7



Total used


1,428


1,250


14.2












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$   33,494


$ 34,658


(3.4)


0.1

Used vehicle retail


$   22,587


$ 22,223


1.6


5.2










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$     1,829


$   2,100


(12.9)


(9.8)

Used vehicle retail sales


1,356


1,622


(16.4)


(13.6)

Used vehicle wholesale sales


423


937


(54.9)


(52.9)

Total used


1,123


1,474


(23.8)


(21.3)

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


$        597


$      674


(11.4)


(8.1)










OTHER: 









SG&A expenses


$   11,773


$ 11,315


4.0


7.5

SG&A as % revenues


10.6


11.8





SG&A as % gross profit


93.2


92.8





Operating margin %


0.4


0.5














(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 Consolidated (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)




Three Months Ended March 31,



2018


2017


% Increase/
(Decrease)


Constant Currency (2)
% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$ 1,407,514


$ 1,333,038


5.6


3.5

Used vehicle retail sales


724,164


658,552


10.0


7.7

Used vehicle wholesale sales


92,694


104,046


(10.9)


(14.6)

Total used


816,858


762,598


7.1


4.6

Parts and service


333,488


318,703


4.6


3.3

Finance, insurance and other, net


106,658


96,154


10.9


9.8

Total 


$ 2,664,518


$ 2,510,493


6.1


4.1










GROSS MARGIN %:









New vehicle retail sales


5.0


5.2





Used vehicle retail sales


5.7


6.8





Used vehicle wholesale sales


1.6


0.1





Total used


5.2


5.9





Parts and service


53.3


54.0





Finance, insurance and other, net


100.0


100.0





Total


14.9


15.2














GROSS PROFIT:









New vehicle retail sales


$      70,436


$      69,023


2.0


(0.2)

Used vehicle retail sales


41,151


44,905


(8.4)


(9.9)

Used vehicle wholesale sales


1,526


119


1,182.4


1,181.5

Total used


42,677


45,024


(5.2)


(6.7)

Parts and service


177,788


172,113


3.3


1.9

Finance, insurance and other, net


106,658


96,154


10.9


9.8

Total 


$    397,559


$    382,314


4.0


2.5










UNITS SOLD:









Retail new vehicles sold


38,229


38,078


0.4



Retail used vehicles sold


33,793


31,488


7.3



Wholesale used vehicles sold


13,913


14,392


(3.3)



Total used


47,706


45,880


4.0












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$      36,818


$      35,008


5.2


3.1

Used vehicle retail


$      21,429


$      20,914


2.5


0.3










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$        1,842


$        1,813


1.6


(0.6)

Used vehicle retail sales


1,218


1,426


(14.6)


(16.0)

Used vehicle wholesale sales


110


8


1,275.0


1,225.6

Total used


895


981


(8.8)


(10.3)

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


$        1,481


$        1,382


7.2


6.0










OTHER: 









SG&A expenses


$    306,200


$    288,295


6.2


4.6

Adjusted SG&A expenses(2)


$    306,200


$    290,128


5.5


3.9

SG&A as % revenues


11.5


11.5





Adjusted SG&A as % revenues (2)


11.5


11.6





SG&A as % gross profit


77.0


75.4





Adjusted SG&A as % gross profit (2)


77.0


75.9





Operating margin %


2.9


3.2





Adjusted operating margin % (2)


2.9


3.1














(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 March 31,



2018


2017


% Increase/
(Decrease)

SG&A RECONCILIATION:







As reported

$ 252,941


$ 236,273


7.1


  Pre-tax adjustments:







      Legal settlements (2)

-


1,833




Adjusted SG&A (1)

$ 252,941


$ 238,106


6.2








SG&A AS % REVENUES:







Unadjusted

12.1


12.0




Adjusted (1)

12.1


12.1



SG&A AS % GROSS PROFIT:







Unadjusted

75.4


73.7




Adjusted (1)

75.4


74.3



OPERATING MARGIN %







Unadjusted

3.3


3.7




Adjusted (1)

3.3


3.6



PRETAX MARGIN %:







Unadjusted

1.9


2.3




Adjusted (1)

1.9


2.2










SAME STORE SG&A RECONCILIATION:







As reported

$ 247,611


$ 236,051


4.9


  Pre-tax adjustments:







      Legal settlements (2)

-


1,833




Adjusted Same Store SG&A(1)

$ 247,611


$ 237,884


4.1








SAME STORE SG&A AS % REVENUES:







Unadjusted

12.1


12.0




Adjusted (1)

12.1


12.1



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

75.1


73.7




Adjusted (1)

75.1


74.3



SAME STORE OPERATING MARGIN %







Unadjusted

3.4


3.7




Adjusted (1)

3.4


3.6










(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)

For the three months ended March 31, 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 - CONSOLIDATED

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended March 31,



2018


2017


% Increase/
(Decrease)








NET INCOME RECONCILIATION:







As reported







  Pretax Net Income

$   46,167


$   51,196




   Income Tax Provision 

(10,353)


(17,257)




     Net Income  

$   35,814


$   33,939


5.5


       Effective Tax Rate 

22.4%


33.7%




  Adjustments:  







      Legal settlements (2)







 Pre-tax 

-


(1,833)




 Tax impact 

-


696




 Adjusted 







   Pretax Net Income 

$   46,167


$   49,363




   Income Tax Provision 

(10,353)


(16,561)




           Adjusted net income (1)

$   35,814


$   32,802


9.2


       Effective Tax Rate 

22.4%


33.6%










ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED







COMMON SHARES RECONCILIATION:







Adjusted net income (1)

$   35,814


$   32,802


9.2


Less: Adjusted earnings allocated to participating securities

1,208


1,206


0.2


Adjusted net income available to diluted common shares (1)

$   34,606


$   31,596


9.5








 DILUTED INCOME PER COMMON SHARE RECONCILIATION: 







As reported

$       1.70


$       1.58


7.6


  After-tax adjustments:







      Legal settlements (2)

-


(0.05)




Adjusted diluted income per share (1)

$       1.70


$       1.53


11.1








SG&A RECONCILIATION:







As reported

$ 324,347


$ 289,779


11.9


  Pre-tax adjustments:







      Legal settlements (2)

-


1,833




Adjusted SG&A (1)

$ 324,347


$ 291,612


11.2








SG&A AS % REVENUES:







Unadjusted

11.3


11.5




Adjusted (1)

11.3


11.6



SG&A AS % GROSS PROFIT:







Unadjusted

77.3


75.6




Adjusted (1)

77.3


76.0



OPERATING MARGIN %







Unadjusted

2.8


3.2




Adjusted (1)

2.8


3.1



PRETAX MARGIN %







Unadjusted

1.6


2.0




Adjusted (1)

1.6


2.0










SAME STORE SG&A RECONCILIATION:







As reported

$ 306,200


$ 288,295


6.2


  Pre-tax adjustments:







      Legal settlements (2)

-


1,833




Adjusted Same Store SG&A (1)

$ 306,200


$ 290,128


5.5








SAME STORE SG&A AS % REVENUES:







Unadjusted

11.5


11.5




Adjusted(1)

11.5


11.6



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

77.0


75.4




Adjusted(1)

77.0


75.9



SAME STORE OPERATING MARGIN %







Unadjusted

2.9


3.2




Adjusted (1)

2.9


3.1










(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)

For the three months ended March 31, 2017, the Company recognized a net pre-tax gain related to a settlement with an OEM of $1.8 million.

 

Cision View original content:http://www.prnewswire.com/news-releases/group-1-automotive-announces-first-quarter-2018-financial-results-300637002.html

SOURCE Group 1 Automotive, Inc.

Copyright 2018 PR Newswire

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