Jul 27, 2017 SOURCE: PR NewsWire
Group 1 Automotive Reports Second Quarter 2017 Financial Results
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, % Increase/
2016
(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/ Constant Currency (1)
(Decrease)
% 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/ Constant Currency (1)
(Decrease) % 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/ Constant Currency (1)
(Decrease)
% 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/ Constant Currency % (1)
(Decrease) 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/ Constant Currency % (1)
(Decrease)
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/ Constant Currency (2)
(Decrease) % 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/ Constant Currency (2)
(Decrease) % 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/ Constant Currency (2)
(Decrease) % 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/ Constant Currency (2)
% Increase/ (Decrease)
(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/ Constant Currency (2)
(Decrease) % 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/ Constant Currency (2)
(Decrease) % 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
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.
(1)
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.
(2)
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.
(3)
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.
(4)
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
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.
(1)
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.
