Feb 8, 2018 SOURCE: PR NewsWire
Group 1 Automotive Reports Record Fourth Quarter & Full Year 2017 Financial Results
HOUSTON, Feb. 8, 2018 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), ("Group 1" or the "Company"), an international, Fortune 500 automotive retailer, today reported 2017 fourth quarter net income of $110.5 million, diluted earnings per common share of $5.27, adjusted net income (a non-GAAP measure) of $44.3 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $2.11.
As shown in the attached non-GAAP reconciliation tables, the 2017 fourth quarter adjusted results (non-GAAP measures) exclude approximately $66.2 million of net after-tax adjustments, or $3.16 per share, for non-core items. These items primarily relate to a reduction in the corporate income tax rate enacted in the U.S. Tax Reform Bill, which benefited the Company in the fourth quarter of 2017 by approximately $73.0 million after-tax, or $3.48 per share. This benefit was partially offset by non-cash asset impairment charges of approximately $6.5 million after-tax, or $0.30 per share.
For the full year of 2017, net income increased 45.1 percent from the comparable prior-year period, to $213.4 million; and diluted earnings per common share increased 51.1 percent, to $10.08. Full year 2017 adjusted net income was nearly flat at $163.5 million; and adjusted diluted earnings per common share increased 4.2 percent, to an all-time high of $7.73. Total revenue grew 2.2 percent (increased 2.7 percent on a constant currency basis), to a record $11.1 billion.
"Despite the headwinds we encountered in the first half of 2017 in our oil-impacted markets and the significant disruptions across our Southeast Texas markets from Hurricane Harvey, we are pleased to have delivered all-time record revenue of $11.1 billion and all-time record adjusted diluted earnings per share of $7.73 for 2017," said Earl J. Hesterberg, Group 1's president and chief executive officer. "Contributing to the record earnings is the impressive work the teams have done on cost control in the U.S. and Brazil during 2017, with the results of those efforts continuing to provide benefits going forward. In addition, our team in the U.K. continues to outperform the market, delivering impressive growth even as the overall market slows. I am pleased with the results in all three regions and believe we are well positioned as we enter 2018."
Consolidated Results for Fourth 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 grew 9.2 percent (7.9 percent) to $2.9 billion.
-- Total gross profit grew 9.4 percent (8.3 percent), to $425.7 million.
-- New vehicle revenues increased 10.2 percent (9.0 percent) on 6.4 percent
higher unit sales. New vehicle gross profit improved 7.8 percent (6.5
percent), to $89.5 million.
-- Retail used vehicle revenues increased 8.9 percent (7.4 percent) on 5.4
percent higher unit sales. Retail used vehicle gross profit increased
3.8 percent (2.6 percent), to $40.5 million.
-- Parts and service gross profit increased 9.9 percent (8.9 percent) on
revenue growth of 10.5 percent (9.5 percent). Same Store parts and
service gross profit increased 6.3 percent (5.5 percent) on revenue
growth of 7.3 percent (6.5 percent). U.S. Same Store parts and service
gross profit increased 5.3 percent on revenue growth of 6.6 percent.
-- Finance and Insurance (F&I) gross profit PRU increased 3.8 percent (3.0
percent), to $1,495. U.S. F&I gross profit PRU increased $56, or 3.4
percent, to an all-time record of $1,700.
-- Selling, General and Administrative (SG&A) expenses as a percent of
gross profit increased 100 basis points, to 72.7 percent. Adjusted SG&A
expenses as a percent of gross profit improved 180 basis points, to 72.6
percent.
Consolidated Results for Full Year 2017 (year-over-year comparable basis)
-- Total revenue increased 2.2 percent (2.7 percent), to a record $11.1
billion.
-- Total gross profit grew 3.2 percent (3.6 percent).
-- New vehicle gross profit increased 1.8 percent (2.2 percent) on 1.8
percent (2.3 percent) higher revenues, as the Company retailed 172,200
new vehicles in 2017.
-- Retail used vehicle gross profit decreased 2.7 percent (decreased 2.1
percent) on a revenue increase of 1.5 percent (2.2 percent). The
Company retailed 129,933 used vehicles in 2017, a 0.6 percent increase
over 2016.
-- Parts and service gross profit rose 5.8 percent (6.3 percent) on 6.1
percent (6.4 percent) higher revenues.
-- Adjusted F&I revenues rose 3.5 percent (3.8 percent). U.S. Adjusted F&I
gross PRU increased $76, to $1,675.
-- SG&A expenses as a percent of gross profit increased 110 basis points,
to 74.5 percent. Adjusted SG&A expenses as a percent of gross profit
remained flat at 73.7. Adjusted U.S. SG&A expenses as a percent of gross
profit improved 60 basis points, to 71.1 percent.
-- Operating margin and adjusted operating margin remained flat at 3.1 and
3.4 percent, respectively.
Segment Results for Fourth Quarter 2017 (year-over-year comparable basis)
-- United States:The Company's U.S. operations accounted for 78.3 percent
of total revenues and 82.4 percent of total gross profit. Total U.S.
revenues were $2.3 billion, an increase of 5.4 percent, driven by an 8.5
percent increase in retail new vehicle revenue. New vehicle gross profit
PRU grew $18, or 0.9 percent per unit, to $2,067; and total gross profit
grew 5.8 percent, to $350.7 million. The Company has delivered new
vehicle gross profit PRU growth for seven of the last eight quarters.
New vehicle inventory ended the quarter at 64 days' supply.
Same Store SG&A expenses as a percent of gross profit improved 60 basis points to 68.9 percent and operating margin improved 40 basis points to 4.1 percent. Adjusted Same Store SG&A expenses as a percent of gross profit improved 300 basis points, to an all-time record of 68.9 percent. Adjusted operating margin improved 40 basis points to an all-time record of 4.2 percent.
-- United Kingdom:The Company's U.K. operations accounted for 17.4 percent
of total revenues and 14.2 percent of total gross profit. Total U.K.
revenues increased 31.1 percent (22.8 percent), to $507.8 million, and
were driven by double-digit revenue growth across each business segment,
despite the industry decreasing by nearly 13 percent. Total gross
profit increased 36.0 percent (27.4 percent), to $60.4 million.
Same Store SG&A expenses as a percent of gross profit improved 30 basis points to 87.1 percent and operating margin improved 10 basis points to 1.1 percent.
-- Brazil:The Company's Brazilian operations were profitable during the
fourth quarter and accounted for 4.3 percent of total revenues and 3.4
percent of total gross profit. The Company's Same Store new vehicle
revenue grew 14.7 percent on a constant currency basis, which outpaced
the industry's rebound of 13.5 percent. On a Same Store basis, total
revenues grew 13.8 percent, driven by revenue growth of 31.1 percent in
F&I, 14.7 percent in new vehicles, 12.2 percent in total used vehicles,
and 8.0 percent in parts & service. F&I gross profit PRU grew 18.8
percent.
The Company's used vehicle operations in Brazil continued to improve during the quarter. On a Same Store constant currency basis, total used vehicle retail margins increased 60 basis points to 7.5 percent and total used vehicle gross profit grew 23.5 percent, on a constant currency basis.
Same Store SG&A expenses as a percent of gross profit increased 150 basis points to 92.0 percent. Adjusted Same Store SG&A as a percent of gross profit improved 180 basis points to 88.7 percent.
Share Repurchase Authorization
For the full year of 2017, the Company repurchased 649,298 shares at an average price per common share of $61.75 for a total of $40.1 million. As of February 8, 2018, $49.6 million remains available under the Company's prior 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:
-- Opened a Land Rover franchise in Watford, a North London suburb in the
U.K., which is expected to generate approximately $35 million in
annualized revenues;
-- Acquired Audi El Paso, which is expected to generate approximately $35
million in annualized revenues; and
-- Acquired Subaru El Paso, which is expected to generate approximately $30
million in annualized revenues.
During 2017, the Company acquired a total of 20 franchises, which are expected to generate an estimated $490 million in annual revenues. The Company disposed of three franchises that generated approximately $35 million in trailing-twelve-month revenues at the time of disposition.
Corporate Tax Reform
As a result of the U.S. Tax Reform Bill, which was enacted on December 22, 2017, the federal statutory corporate tax rate was reduced from 35 percent to 21 percent. This change allowed the Company to record a tax benefit of $73 million based on the revaluation of its net deferred tax liabilities as of the enactment date. Beginning in 2018, and going forward, the Company estimates this change will reduce its effective tax rate from approximately 36 percent to a range of 23-24 percent, and improve annual cash flow by about $20 million. As a result of this tax savings, the Company announced it will pay a $500 bonus to approximately 6,600 tenured, non-management, dealership employees and support staff on March 1, 2018 at a total cost of approximately $3.3 million. This one-time payment will be reflected in the Company's first quarter 2018 results.
Fourth 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 fourth 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: 3198411
A telephonic replay will be available following the call through February 15, 2018 by dialing:
Domestic: 1-877-344-7529
International: 1-412-317-0088
Replay ID: 10116253
About Group 1 Automotive, Inc.
Group 1 owns and operates 175 automotive dealerships, 230 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 December 31,
-------------------------------
2017 2016 % Increase/
(Decrease)
----------
REVENUES:
New vehicle retail sales $1,661,309 $1,507,513 10.2
Used vehicle retail sales 709,072 651,144 8.9
Used vehicle wholesale sales 91,809 99,774 (8.0)
Parts and service 343,510 310,966 10.5
Finance, insurance and other,
net 114,705 104,235 10.0
------- -------
Total revenues 2,920,405 2,673,632 9.2
COST OF SALES:
New vehicle retail sales 1,571,774 1,424,445 10.3
Used vehicle retail sales 668,558 612,098 9.2
Used vehicle wholesale sales 94,199 103,754 (9.2)
Parts and service 160,199 144,154 11.1
------- -------
Total cost of sales 2,494,730 2,284,451 9.2
GROSS PROFIT 425,675 389,181 9.4
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 309,521 279,071 10.9
DEPRECIATION AND AMORTIZATION
EXPENSE 15,178 13,166 15.3
ASSET IMPAIRMENTS 9,980 20,027 (50.2)
OPERATING INCOME 90,996 76,917 18.3
OTHER EXPENSE:
Floorplan interest expense (13,713) (11,189) 22.6
Other interest expense, net (18,309) (17,208) 6.4
------- -------
INCOME BEFORE INCOME TAXES 58,974 48,520 21.5
PROVISION FOR INCOME TAXES 51,515 (17,692) 391.2
NET INCOME $110,489 $30,828 258.4
======== =======
Less: Earnings allocated to
participating securities $3,718 $1,220 204.8
Earnings available to diluted
common shares $106,771 $29,608 260.6
======== =======
DILUTED EARNINGS PER SHARE $5.27 $1.44 266.0
Weighted average dilutive
common shares outstanding 20,261 20,592 (1.6)
Weighted average participating
securities 708 858 (17.5)
--- ---
Total weighted average shares
outstanding 20,969 21,450 (2.2)
Twelve Months Ended December 31,
--------------------------------
2017 2016 % Increase/
(Decrease)
----------
REVENUES:
New vehicle retail sales $6,157,531 $6,046,075 1.8
Used vehicle retail sales 2,798,986 2,757,713 1.5
Used vehicle wholesale sales 400,170 401,863 (0.4)
Parts and service 1,338,032 1,261,307 6.1
Finance, insurance and other,
net 429,002 420,654 2.0
Total revenues 11,123,721 10,887,612 2.2
COST OF SALES:
New vehicle retail sales 5,835,526 5,729,697 1.8
Used vehicle retail sales 2,621,431 2,575,234 1.8
Used vehicle wholesale sales 402,912 406,305 (0.8)
Parts and service 618,343 581,307 6.4
Total cost of sales 9,478,212 9,292,543 2.0
GROSS PROFIT 1,645,509 1,595,069 3.2
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 1,226,195 1,170,763 4.7
DEPRECIATION AND AMORTIZATION
EXPENSE 57,936 51,234 13.1
ASSET IMPAIRMENTS 19,506 32,838 (40.6)
OPERATING INCOME 341,872 340,234 0.5
OTHER EXPENSE:
Floorplan interest expense (52,372) (44,927) 16.6
Other interest expense, net (70,497) (67,936) 3.8
-------
INCOME BEFORE INCOME TAXES 219,003 227,371 (3.7)
PROVISION FOR INCOME TAXES (5,561) (80,306) (93.1)
NET INCOME $213,442 $147,065 45.1
======== ========
Less: Earnings allocated to
participating securities $7,511 $5,869 28.0
Earnings available to diluted
common shares $205,931 $141,196 45.8
======== ========
DILUTED EARNINGS PER SHARE $10.08 $6.67 51.1
Weighted average dilutive
common shares outstanding 20,425 21,170 (3.5)
Weighted average participating
securities 752 886 (15.1)
--- ---
Total weighted average shares
outstanding 21,177 22,056 (4.0)
Group 1 Automotive, Inc.
Consolidated Balance Sheets
(Dollars in thousands)
December December % Increase/
31, 2017 31, 2016 (Decrease)
-------- -------- ---------
ASSETS: (Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $28,787 $20,992 37.1
Contracts in transit and vehicle
receivables, net 306,433 269,508 13.7
Accounts and notes receivable, net 188,611 173,364 8.8
Inventories, net 1,763,293 1,651,815 6.7
Prepaid expenses and other current
assets 42,062 34,908 20.5
------ ------
Total current assets 2,329,186 2,150,587 8.3
PROPERTY AND EQUIPMENT, net 1,318,959 1,125,883 17.1
GOODWILL AND INTANGIBLE FRANCHISE
RIGHTS 1,198,666 1,161,639 3.2
OTHER ASSETS 24,254 23,794 1.9
Total assets $4,871,065 $4,461,903 9.2
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES:
Floorplan notes payable -credit
facility and other $1,240,695 $1,136,654 9.2
Offset account related to floorplan
notes payable -credit facility (86,547) (59,626) 45.1
Floorplan notes payable -manufacturer
affiliates 397,183 392,661 1.2
Offset account related to floorplan
notes payable -manufacturer
affiliates (22,500) (25,500) (11.8)
Current maturities of long-term debt
and short-term financing 77,609 72,419 7.2
Current liabilities from interest rate
risk management activities 1,996 3,941 (49.4)
Accounts payable 412,981 356,099 16.0
Accrued expenses 177,070 176,469 0.3
------- -------
Total current liabilities 2,198,487 2,053,117 7.1
5.00% SENIOR NOTES (principal of
$550,000 at December 31, 2017 and
December 31, 2016, respectively) 542,063 540,465 0.3
5.25% SENIOR NOTES (principal of
$300,000 at December 31, 2017 and
December 31, 2016, respectively) 296,151 295,591 0.2
ACQUISITION LINE 26,988 - 100.0
REAL ESTATE RELATED AND OTHER LONG-
TERM DEBT, net of current maturities 405,950 333,326 21.8
CAPITAL LEASE OBLIGATIONS RELATED TO
REAL ESTATE, net of current maturities 47,032 43,427 8.3
DEFERRED INCOME TAXES 124,404 161,502 (23.0)
LIABILITIES FROM INTEREST RATE RISK
MANAGEMENT ACTIVITIES 8,583 20,470 (58.1)
OTHER LIABILITIES 97,125 83,805 15.9
STOCKHOLDERS' EQUITY:
Common stock 255 257 (0.8)
Additional paid-in capital 291,461 290,899 0.2
Retained earnings 1,246,323 1,053,301 18.3
Accumulated other comprehensive loss (123,226) (146,944) (16.1)
Treasury stock (290,531) (267,313) 8.7
-------- --------
Total stockholders' equity $1,124,282 $930,200 20.9
Total liabilities and stockholders'
equity $4,871,065 $4,461,903 9.2
========== ==========
Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------ ------------
2017 (%) 2016 (%) 2017 (%) 2016 (%)
-------- ------- ------- -------
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
Region Geographic Market
------ -----------------
Texas 39.2 37.1 37.0 36.5
California 7.3 8.6 7.5 9.1
Oklahoma 6.0 6.4 6.1 6.8
Georgia 4.6 4.5 4.6 4.3
United States Massachusetts 4.5 4.6 4.6 4.8
Florida 2.9 2.8 2.6 2.6
New Hampshire 1.9 2.0 2.0 1.9
Louisiana 1.8 2.0 1.9 2.1
New Jersey 1.6 1.7 1.7 1.6
South Carolina 1.6 1.6 1.4 1.4
Kansas 1.4 1.7 1.6 1.8
Mississippi 1.1 1.3 1.3 1.5
Alabama 0.8 0.9 1.0 0.9
Maryland 0.4 0.5 0.4 0.5
New Mexico 0.1 - 0.1 -
75.2 75.7 73.8 75.8
International United Kingdom 19.5 18.7 21.3 18.4
Brazil 5.3 5.6 4.9 5.8
100.0 100.0 100.0 100.0
===== ===== ===== =====
NEW VEHICLE UNIT SALES BRAND MIX:
---------------------------------
Toyota/Scion/Lexus 25.4 25.8 25.3 24.9
Volkswagen/Audi/Porsche 13.2 11.2 13.0 11.0
BMW/MINI 12.4 14.4 12.7 13.5
Ford/Lincoln 11.4 10.8 11.5 11.0
Honda/Acura 9.2 8.8 9.2 9.9
Nissan 7.0 7.5 7.4 7.1
Chevrolet/GMC/Buick/Cadillac 6.3 7.0 6.2 7.4
Mercedes-Benz/smart/Sprinter 4.4 4.8 4.0 4.3
Chrysler/Dodge/Jeep/RAM 3.9 3.6 3.9 4.0
Hyundai/Kia 3.8 3.6 3.9 4.2
Other 3.0 2.5 2.9 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 December 31,
-------------------------------
2017 2016 % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail sales $1,310,577 $1,207,922 8.5
Used vehicle retail sales 540,528 532,913 1.4
Used vehicle wholesale
sales 50,284 70,954 (29.1)
------ ------
Total used 590,812 603,867 (2.2)
Parts and service 286,608 266,033 7.7
Finance, insurance and
other, net 99,200 93,112 6.5
------ ------
Total $2,287,197 $2,170,934 5.4
GROSS MARGIN %:
New vehicle retail sales 5.3 5.4
Used vehicle retail sales 5.9 6.2
Used vehicle wholesale
sales (4.5) (3.9)
Total used 5.0 5.0
Parts and service 53.2 53.8
Finance, insurance and
other, net 100.0 100.0
Total 15.3 15.3
GROSS PROFIT:
New vehicle retail sales $69,455 $65,101 6.7
Used vehicle retail sales 31,931 32,877 (2.9)
Used vehicle wholesale
sales (2,257) (2,796) 19.3
------ ------
Total used 29,674 30,081 (1.4)
Parts and service 152,349 143,023 6.5
Finance, insurance and
other, net 99,200 93,112 6.5
------ ------
Total $350,678 $331,317 5.8
UNITS SOLD:
Retail new vehicles sold 33,608 31,779 5.8
Retail used vehicles sold 24,735 24,866 (0.5)
Wholesale used vehicles
sold 8,194 10,115 (19.0)
----- ------
Total used 32,929 34,981 (5.9)
AVERAGE RETAIL SALES PRICE:
New vehicle retail $38,996 $38,010 2.6
Used vehicle retail $21,853 $21,431 2.0
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales $2,067 $2,049 0.9
Used vehicle retail sales 1,291 1,322 (2.3)
Used vehicle wholesale
sales (275) (276) 0.4
Total used 901 860 4.8
Finance, insurance and
other, net (per retail
unit) $1,700 $1,644 3.4
OTHER:
SG&A expenses $242,070 $227,411 6.4
Adjusted SG&A expenses (1) $242,070 $238,227 1.6
SG&A as % revenues 10.6 10.5
Adjusted SG&A as % revenues
(1) 10.6 11.0
SG&A as % gross profit 69.0 68.6
Adjusted SG&A as % gross
profit (1) 69.0 71.9
Operating margin % 4.1 3.8
Adjusted operating margin %
(1) 4.2 3.8
Pretax margin % 2.8 2.7
Adjusted pretax margin %
(1) 2.9 2.6
INTEREST EXPENSE:
Floorplan interest expense $(12,267) $(10,015) 22.5
Floorplan assistance 12,952 12,201 6.2
------ ------
Net floorplan income $685 $2,186 (68.7)
Other interest expense, net $(16,922) $(15,740) 7.5
Twelve Months Ended December 31,
--------------------------------
2017 2016 % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail sales $4,768,864 $4,766,047 0.1
Used vehicle retail sales 2,160,699 2,242,508 (3.6)
Used vehicle wholesale
sales 250,668 276,710 (9.4)
------- -------
Total used 2,411,367 2,519,218 (4.3)
Parts and service 1,124,380 1,071,651 4.9
Finance, insurance and
other, net 375,954 377,756 (0.5)
------- -------
Total $8,680,565 $8,734,672 (0.6)
GROSS MARGIN %:
New vehicle retail sales 5.1 5.1
Used vehicle retail sales 6.7 6.9
Used vehicle wholesale
sales (1.0) (1.2)
Total used 5.9 6.0
Parts and service 53.6 54.4
Finance, insurance and
other, net 100.0 100.0
Total 15.7 15.5
GROSS PROFIT:
New vehicle retail sales $244,286 $242,773 0.6
Used vehicle retail sales 144,529 155,709 (7.2)
Used vehicle wholesale
sales (2,427) (3,439) 29.4
------ ------
Total used 142,102 152,270 (6.7)
Parts and service 602,972 582,550 3.5
Finance, insurance and
other, net 375,954 377,756 (0.5)
------- -------
Total $1,365,314 $1,355,349 0.7
UNITS SOLD:
Retail new vehicles sold 127,141 130,471 (2.6)
Retail used vehicles sold 101,170 105,754 (4.3)
Wholesale used vehicles
sold 37,662 41,009 (8.2)
------ ------
Total used 138,832 146,763 (5.4)
AVERAGE RETAIL SALES PRICE:
New vehicle retail sales $37,508 $36,530 2.7
Used vehicle retail sales $21,357 $21,205 0.7
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales $1,921 $1,861 3.2
Used vehicle retail sales $1,429 $1,472 (2.9)
Used vehicle wholesale
sales (64) (84) 23.8
Total used $1,024 $1,038 (1.3)
Finance, insurance and
other, net (per retail
unit) $1,647 $1,599 3.0
OTHER:
Adjusted Finance, insurance
and other revenue, net (1)
(2) $382,504 $377,756 1.3
Adjusted Total Revenue (1) $8,687,115 $8,734,672 (0.5)
Adjusted Total Gross Profit
(1) $1,371,864 $1,355,349 1.2
Adjusted Total Gross Margin
(1) 15.8 15.5
Adjusted Finance, insurance
and other, net (per retail
unit) (1) $1,675 $1,599 4.8
SG&A expenses $983,974 $965,139 2.0
Adjusted SG&A expenses (1) $975,497 $971,908 0.4
SG&A as % revenues 11.3 11.0
Adjusted SG&A as % revenues
(1) 11.2 11.1
SG&A as % gross profit 72.1 71.2
Adjusted SG&A as % gross
profit (1) 71.1 71.7
Operating margin % 3.7 3.7
Adjusted operating margin %
(1) 4.0 3.9
Pretax margin % 2.4 2.5
Adjusted pretax margin %
(1) 2.7 2.7
INTEREST EXPENSE:
Floorplan interest expense $(47,221) $(40,444) 16.8
Floorplan assistance 47,984 48,377 (0.8)
------ ------
Net floorplan income $763 $7,933 (90.4)
Other interest expense, net $(66,493) $(62,320) 6.7
(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.
(2) Finance,
insurance
and other
revenue
represents
fees earned
for the
financing of
vehicle
sales
transactions
and from the
sale of
insurance
and vehicle
service
contracts.
Such amounts
are reported
net of
estimated
amounts to
be charged
back in the
future. As a
result,
finance,
insurance
and other
revenue and
gross profit
are the
same.
Group 1 Automotive, Inc.
Additional Information - U.K.
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended December 31,
2017 2016 % Increase/ Constant Currency (1)
(Decrease) % Increase/ (Decrease)
--------- ----------------------
REVENUES:
New vehicle retail sales $267,785 $222,831 20.2 12.5
Used vehicle retail sales 144,415 94,403 53.0 43.3
Used vehicle wholesale
sales 37,243 27,762 34.2 25.7
------ ------
Total used 181,658 122,165 48.7 39.3
Parts and service 45,141 33,182 36.0 27.5
Finance, insurance and
other, net 13,263 9,314 42.4 33.2
------ -----
Total $507,847 $387,492 31.1 22.8
GROSS MARGIN %:
New vehicle retail sales 5.7 6.0
Used vehicle retail sales 4.6 4.8
Used vehicle wholesale
sales (0.9) (4.4)
Total used 3.5 2.7
Parts and service 56.6 55.8
Finance, insurance and
other, net 100.0 100.0
Total 11.9 11.5
GROSS PROFIT:
New vehicle retail sales $15,231 $13,308 14.4 7.1
Used vehicle retail sales 6,696 4,497 48.9 39.5
Used vehicle wholesale
sales (322) (1,235) 73.9 75.4
---- ------
Total used 6,374 3,262 95.4 83.1
Parts and service 25,559 18,532 37.9 29.2
Finance, insurance and
other, net 13,263 9,314 42.4 33.2
------ -----
Total $60,427 $44,416 36.0 27.4
UNITS SOLD:
Retail new vehicles sold 8,750 7,880 11.0
Retail used vehicles sold 6,188 4,429 39.7
Wholesale used vehicles
sold 5,089 3,780 34.6
----- -----
Total used 11,277 8,209 37.4
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $30,604 $28,278 8.2 1.4
Used vehicle retail $23,338 $21,315 9.5 2.5
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $1,741 $1,689 3.1 (3.6)
Used vehicle retail sales 1,082 1,015 6.6 (0.1)
Used vehicle wholesale
sales (63) (327) 80.7 81.7
Total used 565 397 42.3 33.3
Finance, insurance and
other, net (per retail
unit) $888 $757 17.3 9.7
OTHER:
SG&A expenses $54,095 $39,482 37.0 28.3
Adjusted SG&A expenses(1) $54,095 $39,137 38.2 29.4
SG&A as % revenues 10.7 10.2
Adjusted SG&A as %
revenues (1) 10.7 10.1
SG&A as % gross profit 89.5 88.9
Adjusted SG&A as % gross
profit (1) 89.5 88.1
Operating margin % 0.8 0.8
Adjusted operating margin
% (1) 0.8 0.9
Pretax margin % 0.3 0.2
Adjusted pretax margin %
(1) 0.3 0.3
INTEREST EXPENSE:
Floorplan interest expense $(1,304) $(1,085) 20.2 12.5
Floorplan assistance 237 182 30.2 22.1
--- ---
Net floorplan expense $(1,067) $(903) 18.2 10.6
Other interest expense,
net $(1,278) $(1,231) 3.8 (2.8)
Twelve Months Ended December 31,
--------------------------------
2017 2016 % Increase/ Constant Currency (1)
(Decrease) % Increase/ (Decrease)
--------- ----------------------
REVENUES:
New vehicle retail sales $1,092,612 $987,538 10.6 16.0
Used vehicle retail sales 546,266 434,203 25.8 32.3
Used vehicle wholesale
sales 136,847 121,747 12.4 18.1
------- -------
Total used 683,113 555,950 22.9 29.2
Parts and service 165,755 143,362 15.6 21.3
Finance, insurance and
other, net 44,523 36,305 22.6 27.9
------ ------
Total $1,986,003 $1,723,155 15.3 20.9
GROSS MARGIN %:
New vehicle retail sales 5.5 5.7
Used vehicle retail sales 4.8 5.0
Used vehicle wholesale
sales (0.9) (1.0)
Total used 3.7 3.7
Parts and service 57.3 55.4
Finance, insurance and
other, net 100.0 100.0
Total 11.3 11.2
GROSS PROFIT:
New vehicle retail sales $60,581 $56,655 6.9 11.9
Used vehicle retail sales 26,275 21,826 20.4 26.9
Used vehicle wholesale
sales (1,173) (1,181) 0.7 7.8
------ ------
Total used 25,102 20,645 21.6 28.9
Parts and service 95,047 79,377 19.7 25.6
Finance, insurance and
other, net 44,523 36,305 22.6 27.9
------ ------
Total $225,253 $192,982 16.7 22.4
UNITS SOLD:
Retail new vehicles sold 36,571 31,574 15.8
Retail used vehicles sold 24,623 18,830 30.8
Wholesale used vehicles
sold 18,334 15,108 21.4
------ ------
Total used 42,957 33,938 26.6
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $29,876 $31,277 (4.5) 0.1
Used vehicle retail $22,185 $23,059 (3.8) 1.1
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $1,657 $1,794 (7.6) (3.4)
Used vehicle retail sales 1,067 1,159 (7.9) (2.9)
Used vehicle wholesale
sales (64) (78) 17.9 24.0
Total used 584 608 (3.9) 1.9
Finance, insurance and
other, net (per retail
unit) $728 $720 1.1 5.3
OTHER:
SG&A expenses $191,570 $158,636 20.8 26.3
Adjusted SG&A expenses(1) $191,282 $157,730 21.3 26.8
SG&A as % revenues 9.6 9.2
Adjusted SG&A as %
revenues (1) 9.6 9.2
SG&A as % gross profit 85.0 82.2
Adjusted SG&A as % gross
profit (1) 84.9 81.7
Operating margin % 1.3 1.6
Adjusted operating margin
% (1) 1.3 1.7
Pretax margin % 0.9 1.1
Adjusted pretax margin %
(1) 0.9 1.1
INTEREST EXPENSE:
Floorplan interest expense $(4,727) $(4,222) 12.0 16.8
Floorplan assistance 951 825 15.3 22.1
--- ---
Net floorplan expense $(3,776) $(3,397) 11.2 15.6
Other interest expense,
net $(3,664) $(5,197) (29.5) (26.5)
(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 December 31,
2017 2016 % Increase/ Constant Currency (1)
(Decrease) % Increase/ (Decrease)
--------- ----------------------
REVENUES:
New vehicle retail sales $82,947 $76,760 8.1 6.2
Used vehicle retail sales 24,129 23,828 1.3 (0.4)
Used vehicle wholesale
sales 4,282 1,058 304.7 296.6
----- -----
Total used 28,411 24,886 14.2 12.2
Parts and service 11,761 11,751 0.1 (1.5)
Finance, insurance and
other, net 2,242 1,809 23.9 22.0
----- -----
Total $125,361 $115,206 8.8 7.0
GROSS MARGIN %:
New vehicle retail sales 5.8 6.1
Used vehicle retail sales 7.8 7.0
Used vehicle wholesale
sales 4.4 4.8
Total used 7.3 6.9
Parts and service 45.9 44.7
Finance, insurance and
other, net 100.0 100.0
Total 11.6 11.7
GROSS PROFIT:
New vehicle retail sales $4,849 $4,659 4.1 2.5
Used vehicle retail sales 1,887 1,672 12.9 11.1
Used vehicle wholesale
sales 189 51 270.6 264.3
--- ---
Total used 2,076 1,723 20.5 18.6
Parts and service 5,403 5,257 2.8 1.0
Finance, insurance and
other, net 2,242 1,809 23.9 22.0
----- -----
Total $14,570 $13,448 8.3 6.6
UNITS SOLD:
Retail new vehicles sold 2,355 2,372 (0.7)
Retail used vehicles sold 1,092 1,082 0.9
Wholesale used vehicles
sold 290 367 (21.0)
--- ---
Total used 1,382 1,449 (4.6)
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $35,222 $32,361 8.8 7.0
Used vehicle retail $22,096 $22,022 0.3 (1.3)
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $2,059 $1,964 4.8 3.3
Used vehicle retail sales 1,728 1,545 11.8 10.1
Used vehicle wholesale
sales 652 139 369.1 361.1
Total used 1,502 1,189 26.3 24.4
Finance, insurance and
other, net (per retail
unit) $650 $524 24.0 22.3
OTHER:
SG&A expenses $13,356 $12,178 9.7 8.1
Adjusted SG&A expenses(1) $12,881 $12,178 5.8 4.2
SG&A as % revenues 10.7 10.6
Adjusted SG&A as %
revenues (1) 10.3 10.6
SG&A as % gross profit 91.7 90.6
Adjusted SG&A as % gross
profit (1) 88.4 90.6
Operating margin % (4.7) (8.2)
Adjusted operating margin
% (1) 1.1 0.8
Pretax margin % (4.9) (8.5)
Adjusted pretax margin %
(1) 0.9 0.5
INTEREST EXPENSE:
Floorplan interest expense $(142) $(89) 59.6 54.4
Floorplan assistance - - - -
--- ---
Net floorplan expense $(142) $(89) 59.6 54.4
Other interest expense,
net $(109) $(237) (54.0) (54.4)
Twelve Months Ended December 31,
--------------------------------
2017 2016 % Increase/ Constant Currency (1)
(Decrease) % Increase/ (Decrease)
--------- ----------------------
REVENUES:
New vehicle retail sales $296,055 $292,490 1.2 (6.7)
Used vehicle retail sales 92,021 81,002 13.6 4.4
Used vehicle wholesale
sales 12,655 3,406 271.6 243.3
------ -----
Total used 104,676 84,408 24.0 14.1
Parts and service 47,897 46,294 3.5 (4.8)
Finance, insurance and
other, net 8,525 6,593 29.3 19.3
----- -----
Total $457,153 $429,785 6.4 (2.0)
GROSS MARGIN %:
New vehicle retail sales 5.8 5.8
Used vehicle retail sales 7.3 6.1
Used vehicle wholesale
sales 6.8 5.2
Total used 7.3 6.1
Parts and service 45.2 39.0
Finance, insurance and
other, net 100.0 100.0
Total 12.0 10.9
GROSS PROFIT:
New vehicle retail sales $17,138 $16,950 1.1 (6.7)
Used vehicle retail sales 6,751 4,944 36.5 28.4
Used vehicle wholesale
sales 858 178 382.0 346.9
--- ---
Total used 7,609 5,122 48.6 39.4
Parts and service 21,670 18,073 19.9 10.4
Finance, insurance and
other, net 8,525 6,593 29.3 19.3
----- -----
Total $54,942 $46,738 17.6 8.6
UNITS SOLD:
Retail new vehicles sold 8,488 10,008 (15.2)
Retail used vehicles sold 4,140 4,547 (9.0)
Wholesale used vehicles
sold 1,148 1,222 (6.1)
----- -----
Total used 5,288 5,769 (8.3)
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $34,879 $29,226 19.3 10.1
Used vehicle retail $22,227 $17,814 24.8 14.7
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $2,019 $1,694 19.2 10.0
Used vehicle retail sales 1,631 1,087 50.0 41.0
Used vehicle wholesale
sales 747 146 411.6 375.8
Total used 1,439 888 62.0 52.1
Finance, insurance and
other, net (per retail
unit) $675 $453 49.0 37.5
OTHER:
SG&A expenses $50,651 $46,988 7.8 (0.7)
Adjusted SG&A expenses(1) $50,176 $46,342 8.3 (0.2)
SG&A as % revenues 11.1 10.9
Adjusted SG&A as %
revenues (1) 11.0 10.8
SG&A as % gross profit 92.2 100.5
Adjusted SG&A as % gross
profit (1) 91.3 99.2
Operating margin % (0.9) (2.9)
Adjusted operating margin
% (1) 0.7 (0.2)
Pretax margin % (1.0) (3.0)
Adjusted pretax margin %
(1) 0.6 (0.3)
INTEREST EXPENSE:
Floorplan interest expense $(424) $(261) 62.5 51.4
Floorplan assistance - - - -
--- ---
Net floorplan expense $(424) $(261) 62.5 51.4
Other interest expense,
net $(340) $(418) (18.7) (25.0)
(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 December 31,
2017 2016 % Increase/ Constant Currency % (1)
(Decrease) Increase/ (Decrease)
--------- --------------------
REVENUES:
New vehicle retail sales $1,661,309 $1,507,513 10.2 9.0
Used vehicle retail sales 709,072 651,144 8.9 7.4
Used vehicle wholesale
sales 91,809 99,774 (8.0) (10.4)
------ ------
Total used 800,881 750,918 6.7 5.1
Parts and service 343,510 310,966 10.5 9.5
Finance, insurance and
other, net 114,705 104,235 10.0 9.2
------- -------
Total $2,920,405 $2,673,632 9.2 7.9
GROSS MARGIN %:
New vehicle retail sales 5.4 5.5
Used vehicle retail sales 5.7 6.0
Used vehicle wholesale
sales (2.6) (4.0)
Total used 4.8 4.7
Parts and service 53.4 53.6
Finance, insurance and
other, net 100.0 100.0
Total 14.6 14.6
GROSS PROFIT:
New vehicle retail sales $89,535 $83,068 7.8 6.5
Used vehicle retail sales 40,514 39,046 3.8 2.6
Used vehicle wholesale
sales (2,390) (3,980) 39.9 40.4
------ ------
Total used 38,124 35,066 8.7 7.5
Parts and service 183,311 166,812 9.9 8.9
Finance, insurance and
other, net 114,705 104,235 10.0 9.2
------- -------
Total $425,675 $389,181 9.4 8.3
UNITS SOLD:
Retail new vehicles sold 44,713 42,031 6.4
Retail used vehicles sold 32,015 30,377 5.4
Wholesale used vehicles
sold 13,573 14,262 (4.8)
------ ------
Total used 45,588 44,639 2.1
AVERAGE RETAIL SALES PRICE:
New vehicle retail $37,155 $35,867 3.6 2.4
Used vehicle retail $22,148 $21,435 3.3 1.9
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales $2,002 $1,976 1.3 0.1
Used vehicle retail sales 1,265 1,285 (1.6) (2.6)
Used vehicle wholesale
sales (176) (279) 36.9 37.3
Total used 836 786 6.4 5.2
Finance, insurance and
other, net (per retail
unit) $1,495 $1,440 3.8 3.0
OTHER:
SG&A expenses $309,521 $279,071 10.9 9.6
Adjusted SG&A expenses (1) $309,046 $289,542 6.7 5.5
SG&A as % revenues 10.6 10.4
Adjusted SG&A as % revenues
(1) 10.6 10.8
SG&A as % gross profit 72.7 71.7
Adjusted SG&A as % gross
profit (1) 72.6 74.4
Operating margin % 3.1 2.9
Adjusted operating margin %
(1) 3.5 3.2
Pretax margin % 2.0 1.8
Adjusted pretax margin %
(1) 2.4 2.2
INTEREST EXPENSE:
Floorplan interest expense $(13,713) $(11,189) 22.6 21.8
Floorplan assistance 13,189 12,383 6.5 6.4
------ ------
Net floorplan (expense)
income $(524) $1,194 (143.9) (137.7)
Other interest expense, net $(18,309) $(17,208) 6.4 5.9
Twelve Months Ended December 31,
2017 2016 % Increase/ (Decrease) Constant Currency %(1)
Increase/ (Decrease)
--------------------
REVENUES:
New vehicle retail sales $6,157,531 $6,046,075 1.8 2.3
Used vehicle retail sales 2,798,986 2,757,713 1.5 2.2
Used vehicle wholesale
sales 400,170 3,159,576 (0.4) 1.1
------- ---------
Total used 3,199,156 3,159,576 1.3 2.1
Parts and service 1,338,032 1,261,307 6.1 6.4
Finance, insurance and
other, net 429,002 420,654 2.0 2.3
------- -------
Total $11,123,721 $10,887,612 2.2 2.7
GROSS MARGIN %:
New vehicle retail sales 5.2 5.2
Used vehicle retail sales 6.3 6.6
Used vehicle wholesale
sales (0.7) (1.1)
Total used 5.5 5.6
Parts and service 53.8 53.9
Finance, insurance and
other, net 100.0 100.0
Total 14.8 14.7
GROSS PROFIT:
New vehicle retail sales $322,005 $316,378 1.8 2.2
Used vehicle retail sales 177,555 182,479 (2.7) (2.1)
Used vehicle wholesale
sales (2,742) (4,442) 38.3 38.8
------ ------
Total used 174,813 178,037 (1.8) (1.2)
Parts and service 719,689 680,000 5.8 6.3
Finance, insurance and
other, net 429,002 420,654 2.0 2.3
------- -------
Total $1,645,509 $1,595,069 3.2 3.6
UNITS SOLD:
Retail new vehicles sold 172,200 172,053 0.1
Retail used vehicles sold 129,933 129,131 0.6
Wholesale used vehicles
sold 57,144 57,339 (0.3)
------ ------
Total used 187,077 186,470 0.3
AVERAGE RETAIL SALES PRICE:
New vehicle retail $35,758 $35,141 1.8 2.2
Used vehicle retail $21,542 $21,356 0.9 1.6
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales $1,870 $1,839 1.7 2.2
Used vehicle retail sales 1,367 1,413 (3.3) (2.7)
Used vehicle wholesale
sales (48) (77) 37.7 38.5
Total used 934 955 (2.2) (1.5)
Finance, insurance and
other, net (per retail
unit) $1,420 $1,397 1.6 2.0
OTHER:
Adjusted Finance, insurance
and other revenue, net (1)
(2) $435,552 $420,654 3.5 3.8
Adjusted Total Revenue (1) $11,130,271 $10,887,612 2.2 2.8
Adjusted Total Gross Profit
(1) $1,652,059 $1,595,069 3.6 4.0
Adjusted Total Gross Margin
(1) 14.8 14.7
Adjusted Finance, insurance
and other, net (per retail
unit) (1) $1,442 $1,397 3.2 3.5
SG&A expenses $1,226,195 $1,170,763 4.7 5.1
Adjusted SG&A expenses (1) $1,216,955 $1,175,980 3.5 3.9
SG&A as % revenues 11.0 10.8
Adjusted SG&A as % revenues
(1) 10.9 10.8
SG&A as % gross profit 74.5 73.4
Adjusted SG&A as % gross
profit (1) 73.7 73.7
Operating margin % 3.1 3.1
Adjusted operating margin %
(1) 3.4 3.4 17.0
Pretax margin % 2.0 2.1 (0.4)
Adjusted pretax margin %
(1) 2.3 2.3 (183.3)
4.0
INTEREST EXPENSE:
Floorplan interest expense $(52,372) $(44,927) 16.6 17.0
Floorplan assistance 48,935 49,202 (0.5) (0.4)
------ ------
Net floorplan (expense)
income $(3,437) $4,275 (180.4) (183.3)
Other interest expense, net $(70,497) $(67,936) 3.8 4.0
(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.
(2) Finance,
insurance
and other
revenue
represents
fees earned
for the
financing of
vehicle
sales
transactions
and from the
sale of
insurance
and vehicle
service
contracts.
Such amounts
are reported
net of
estimated
amounts to
be charged
back in the
future. As
a result,
finance,
insurance
and other
revenue and
gross profit
are the
same.
Group 1 Automotive, Inc.
Additional Information - Same Store U.S. (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended December 31,
-------------------------------
2017 2016 % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail sales $1,290,879 $1,207,538 6.9
Used vehicle retail sales 532,189 532,880 (0.1)
Used vehicle wholesale
sales 49,602 70,621 (29.8)
------ ------
Total used 581,791 603,501 (3.6)
Parts and service 283,561 266,011 6.6
Finance, insurance and
other, net 97,536 92,661 5.3
------ ------
Total $2,253,767 $2,169,711 3.9
GROSS MARGIN %:
New vehicle retail sales 5.3 5.4
Used vehicle retail sales 5.9 6.2
Used vehicle wholesale
sales (4.5) (3.9)
Total used 5.0 5.0
Parts and service 53.1 53.8
Finance, insurance and
other, net 100.0 100.0
Total 15.3 15.2
GROSS PROFIT:
New vehicle retail sales $68,391 $64,974 5.3
Used vehicle retail sales 31,474 32,871 (4.2)
Used vehicle wholesale
sales (2,222) (2,750) 19.2
------ ------
Total used 29,252 30,121 (2.9)
Parts and service 150,672 143,046 5.3
Finance, insurance and
other, net 97,536 92,661 5.3
------ ------
Total $345,851 $330,802 4.5
UNITS SOLD:
Retail new vehicles sold 33,157 31,765 4.4
Retail used vehicles sold 24,386 24,864 (1.9)
Wholesale used vehicles
sold 8,100 10,090 (19.7)
----- ------
Total used 32,486 34,954 (7.1)
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $38,932 $38,015 2.4
Used vehicle retail $21,824 $21,432 1.8
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $2,063 $2,045 0.9
Used vehicle retail sales 1,291 1,322 (2.3)
Used vehicle wholesale
sales (274) (273) (0.4)
Total used 900 862 4.4
Finance, insurance and
other, net (per retail
unit) $1,695 $1,636 3.6
OTHER:
SG&A expenses $238,151 $229,946 3.6
Adjusted SG&A expenses(2) $238,151 $237,973 0.1
SG&A as % revenues 10.6 10.6
Adjusted SG&A as %
revenues (2) 10.6 11.0
SG&A as % gross profit 68.9 69.5
Adjusted SG&A as % gross
profit (2) 68.9 71.9
Operating margin % 4.1 3.7
Adjusted operating margin
% (2) 4.2 3.8
Twelve Months Ended December 31,
--------------------------------
2017 2016 % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail sales $4,732,177 $4,713,124 0.4
Used vehicle retail sales 2,146,803 2,217,717 (3.2)
Used vehicle wholesale
sales 248,922 272,623 (8.7)
------- -------
Total used 2,395,725 2,490,340 (3.8)
Parts and service 1,118,749 1,062,465 5.3
Finance, insurance and
other, net 372,001 372,581 (0.2)
------- -------
Total $8,618,652 $8,638,510 (0.2)
GROSS MARGIN %:
New vehicle retail sales 5.1 5.1
Used vehicle retail sales 6.7 6.9
Used vehicle wholesale
sales (1.0) (1.1)
Total used 5.9 6.1
Parts and service 53.6 54.3
Finance, insurance and
other, net 100.0 100.0
Total 15.7 15.5
GROSS PROFIT:
New vehicle retail sales $242,301 $240,528 0.7
Used vehicle retail sales 143,688 153,911 (6.6)
Used vehicle wholesale
sales (2,452) (2,964) 17.3
------ ------
Total used 141,236 150,947 (6.4)
Parts and service 599,933 576,925 4.0
Finance, insurance and
other, net 372,001 372,581 (0.2)
------- -------
Total $1,355,471 $1,340,981 1.1
UNITS SOLD:
Retail new vehicles sold 126,247 128,441 (1.7)
Retail used vehicles sold 100,542 104,451 (3.7)
Wholesale used vehicles
sold 37,415 40,361 (7.3)
------ ------
Total used 137,957 144,812 (4.7)
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $37,483 $36,695 2.1
Used vehicle retail $21,352 $21,232 0.6
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $1,919 $1,873 2.5
Used vehicle retail sales 1,429 1,474 (3.1)
Used vehicle wholesale
sales (66) (73) 9.6
Total used 1,024 1,042 (1.7)
Finance, insurance and
other, net (per retail
unit) $1,640 $1,600 2.5
OTHER:
Adjusted Finance,
insurance and other
revenue, net (2) (3) $378,551 $372,581 1.6
Adjusted Total Revenue (2) $8,625,202 $8,638,510 (0.2)
Adjusted Total Gross
Profit (2) $1,362,021 $1,340,981 1.6
Adjusted Total Gross
Margin (2) 15.8 15.5
Adjusted Finance,
insurance and other, net
(per retail unit) (2) $1,669 $1,600 4.3
SG&A expenses $975,701 $955,108 2.2
Adjusted SG&A expenses (2) $967,224 $956,848 1.1
SG&A as % revenues 11.3 11.1
Adjusted SG&A as %
revenues (2) 11.2 11.1
SG&A as % gross profit 72.0 71.2
Adjusted SG&A as % gross
profit (2) 71.0 71.4
Operating margin % 3.7 3.7
Adjusted operating margin
%(2) 4.0 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.
(3) Finance,
insurance
and other
revenue
represents
fees earned
for the
financing of
vehicle
sales
transactions
and from the
sale of
insurance
and vehicle
service
contracts.
Such amounts
are reported
net of
estimated
amounts to
be charged
back in the
future. As
a result,
finance,
insurance
and other
revenue and
gross profit
are the
same.
Group 1 Automotive, Inc.
Additional Information - Same Store U.K. (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended December 31,
2017 2016 % Increase/ Constant Currency (2)
(Decrease) % Increase/ (Decrease)
--------- ----------------------
REVENUES:
New vehicle retail sales $224,123 $221,036 1.4 (5.0)
Used vehicle retail sales 111,186 93,314 19.2 11.6
Used vehicle wholesale
sales 28,518 27,158 5.0 (1.6)
------ ------
Total used 139,704 120,472 16.0 8.6
Parts and service 36,664 32,768 11.9 4.8
Finance, insurance and
other, net 11,264 9,245 21.8 13.9
------ -----
Total $411,755 $383,521 7.4 0.5
GROSS MARGIN %:
New vehicle retail sales 5.7 6.0
Used vehicle retail sales 4.6 4.7
Used vehicle wholesale
sales (1.2) (4.5)
Total used 3.4 2.7
Parts and service 56.2 55.9
Finance, insurance and
other, net 100.0 100.0
Total 12.0 11.5
GROSS PROFIT:
New vehicle retail sales $12,773 $13,217 (3.4) (9.6)
Used vehicle retail sales 5,099 4,424 15.3 8.0
Used vehicle wholesale
sales (336) (1,215) 72.3 73.9
---- ------
Total used 4,763 3,209 48.4 39.0
Parts and service 20,610 18,332 12.4 5.3
Finance, insurance and
other, net 11,264 9,245 21.8 13.9
------ -----
Total $49,410 $44,003 12.3 5.1
UNITS SOLD:
Retail new vehicles sold 7,201 7,763 (7.2)
Retail used vehicles sold 4,617 4,344 6.3
Wholesale used vehicles
sold 3,822 3,625 5.4
----- -----
Total used 8,439 7,969 5.9
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $31,124 $28,473 9.3 2.4
Used vehicle retail $24,082 $21,481 12.1 5.0
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $1,774 $1,703 4.2 (2.6)
Used vehicle retail sales 1,104 1,018 8.4 1.6
Used vehicle wholesale
sales (88) (335) 73.7 75.2
Total used 564 403 40.0 31.2
Finance, insurance and
other, net (per retail
unit) $953 $764 24.7 16.7
OTHER:
SG&A expenses $43,033 $38,468 11.9 4.7
Adjusted SG&A expenses(2) $43,033 $38,285 12.4 5.2
SG&A as % revenues 10.5 10.0
Adjusted SG&A as %
revenues (2) 10.5 10.0
SG&A as % gross profit 87.1 87.4
Adjusted SG&A as % gross
profit (2) 87.1 87.0
Operating margin % 1.1 1.0
Adjusted operating margin
% (2) 1.1 1.1
Twelve Months Ended December 31,
2017 2016 % Increase/ (Decrease) Constant Currency (2)
% Increase/ (Decrease)
----------------------
REVENUES:
New vehicle retail sales $943,182 $967,424 (2.5) 2.2
Used vehicle retail sales 447,777 419,455 6.8 12.2
Used vehicle wholesale
sales 113,082 116,519 (2.9) 1.9
------- -------
Total used 560,859 535,974 4.6 10.0
Parts and service 138,143 137,800 0.2 5.0
Finance, insurance and
other, net 37,762 35,582 6.1 10.7
------ ------
Total $1,679,946 $1,676,780 0.2 5.1
GROSS MARGIN %:
New vehicle retail sales 5.6 5.8
Used vehicle retail sales 4.9 5.1
Used vehicle wholesale
sales (0.7) (1.0)
Total used 3.8 3.8
Parts and service 57.2 55.3
Finance, insurance and
other, net 100.0 100.0
Total 11.4 11.2
GROSS PROFIT:
New vehicle retail sales $52,962 $55,921 (5.3) (0.8)
Used vehicle retail sales 22,147 21,350 3.7 9.6
Used vehicle wholesale
sales (831) (1,122) 25.9 33.2
---- ------
Total used 21,316 20,228 5.4 12.0
Parts and service 79,083 76,235 3.7 8.6
Finance, insurance and
other, net 37,762 35,582 6.1 10.7
------ ------
Total $191,123 $187,966 1.7 6.6
UNITS SOLD:
Retail new vehicles sold 31,054 30,719 1.1
Retail used vehicles sold 19,632 18,062 8.7
Wholesale used vehicles
sold 14,861 14,428 3.0
------ ------
Total used 34,493 32,490 6.2
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $30,372 $31,493 (3.6) 1.1
Used vehicle retail $22,809 $23,223 (1.8) 3.3
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $1,705 $1,820 (6.3) (1.9)
Used vehicle retail sales 1,128 1,182 (4.6) 0.8
Used vehicle wholesale
sales (56) (78) 28.2 35.2
Total used 618 623 (0.8) 5.5
Finance, insurance and
other, net (per retail
unit) $745 $729 2.2 6.5
OTHER:
SG&A expenses $156,369 $150,626 3.8 8.4
Adjusted SG&A expenses(2) $156,081 $149,882 4.1 8.7
SG&A as % revenues 9.3 9.0
Adjusted SG&A as %
revenues (2) 9.3 8.9
SG&A as % gross profit 81.8 80.1
Adjusted SG&A as % gross
profit (2) 81.7 79.7
Operating margin % 1.7 1.8
Adjusted operating margin
% (2) 1.7 1.9
(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 December 31,
-------------------------------
2017 2016 % Increase/ Constant Currency (2)
(Decrease) % Increase/ (Decrease)
--------- ----------------------
REVENUES:
New vehicle retail sales $82,548 $70,759 16.7 14.7
Used vehicle retail sales 22,173 21,755 1.9 0.2
Used vehicle wholesale
sales 3,897 1,058 268.3 260.5
----- -----
Total used 26,070 22,813 14.3 12.2
Parts and service 11,650 10,617 9.7 8.0
Finance, insurance and
other, net 2,230 1,674 33.2 31.1
----- -----
Total $122,498 $105,863 15.7 13.8
GROSS MARGIN %:
New vehicle retail sales 5.8 6.0
Used vehicle retail sales 8.0 7.0
Used vehicle wholesale
sales 4.8 4.9
Total used 7.5 6.9
Parts and service 46.2 45.2
Finance, insurance and
other, net 100.0 100.0
Total 11.7 11.6
GROSS PROFIT:
New vehicle retail sales $4,803 $4,258 12.8 11.1
Used vehicle retail sales 1,780 1,515 17.5 15.6
Used vehicle wholesale
sales 186 52 257.7 257.5
--- ---
Total used 1,966 1,567 25.5 23.5
Parts and service 5,377 4,795 12.1 10.1
Finance, insurance and
other, net 2,230 1,674 33.2 31.1
----- -----
Total $14,376 $12,294 16.9 15.0
UNITS SOLD:
Retail new vehicles sold 2,334 2,108 10.7
Retail used vehicles sold 1,049 958 9.5
Wholesale used vehicles
sold 274 300 (8.7)
--- ---
Total used 1,323 1,258 5.2
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $35,368 $33,567 5.4 3.6
Used vehicle retail $21,137 $22,709 (6.9) (8.5)
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $2,058 $2,020 1.9 0.3
Used vehicle retail sales 1,697 1,581 7.3 5.6
Used vehicle wholesale
sales 679 173 292.5 291.5
Total used 1,486 1,246 19.3 17.4
Finance, insurance and
other, net (per retail
unit) $659 $546 20.7 18.8
OTHER:
SG&A expenses $13,233 $11,124 19.0 17.2
Adjusted SG&A expenses(2) $12,758 $11,124 14.7 12.9
SG&A as % revenues 10.8 10.5
Adjusted SG&A as %
revenues (2) 10.4 10.5
SG&A as % gross profit 92.0 90.5
Adjusted SG&A as % gross
profit (2) 88.7 90.5
Operating margin % (4.9) (9.1)
Adjusted operating margin
% (2) 1.0 0.8
Twelve Months Ended December 31,
2017 2016 % Increase/ Constant Currency (2)
(Decrease) % Increase/ (Decrease)
--------- ----------------------
REVENUES:
New vehicle retail sales $287,190 $270,923 6.0 (2.2)
Used vehicle retail sales 86,298 72,549 19.0 9.6
Used vehicle wholesale
sales 12,144 2,929 314.6 287.3
------ -----
Total used 98,442 75,478 30.4 20.4
Parts and service 45,944 39,623 16.0 7.2
Finance, insurance and
other, net 8,142 5,852 39.1 28.9
----- -----
Total $439,718 $391,876 12.2 3.6
GROSS MARGIN %:
New vehicle retail sales 5.8 5.8
Used vehicle retail sales 7.5 6.2
Used vehicle wholesale
sales 6.9 6.5
Total used 7.4 6.3
Parts and service 45.9 40.7
Finance, insurance and
other, net 100.0 100.0
Total 12.1 10.8
GROSS PROFIT:
New vehicle retail sales $16,662 $15,652 6.5 (1.7)
Used vehicle retail sales 6,488 4,533 43.1 34.6
Used vehicle wholesale
sales 838 190 341.1 311.2
--- ---
Total used 7,326 4,723 55.1 45.7
Parts and service 21,100 16,110 31.0 21.1
Finance, insurance and
other, net 8,142 5,852 39.1 28.9
----- -----
Total $53,230 $42,337 25.7 16.4
UNITS SOLD:
Retail new vehicles sold 8,198 8,798 (6.8)
Retail used vehicles sold 3,974 3,859 3.0
Wholesale used vehicles
sold 997 934 6.7
--- ---
Total used 4,971 4,793 3.7
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $35,032 $30,794 13.8 5.0
Used vehicle retail $21,716 $18,800 15.5 6.4
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $2,032 $1,779 14.2 5.5
Used vehicle retail sales 1,633 1,175 39.0 30.7
Used vehicle wholesale
sales 841 203 314.3 285.3
Total used 1,474 985 49.6 40.5
Finance, insurance and
other, net (per retail
unit) $669 $462 44.8 34.0
OTHER:
SG&A expenses $47,926 $40,315 18.9 10.1
Adjusted SG&A expenses(2) $47,451 $40,041 18.5 9.7
SG&A as % revenues 10.9 10.3
Adjusted SG&A as %
revenues (2) 10.8 10.2
SG&A as % gross profit 90.0 95.2
Adjusted SG&A as % gross
profit (2) 89.1 94.6
Operating margin % (0.6) (2.4)
Adjusted operating margin
% (2) 1.0 0.3
(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 December 31,
2017 2016 % Increase/ Constant Currency (2)
(Decrease) % Increase/ (Decrease)
--------- ----------------------
REVENUES:
New vehicle retail sales $1,597,550 $1,499,333 6.6 5.5
Used vehicle retail sales 665,548 647,949 2.7 1.6
Used vehicle wholesale
sales 82,017 98,837 (17.0) (18.9)
------ ------
Total used 747,565 746,786 0.1 (1.1)
Parts and service 331,875 309,396 7.3 6.5
Finance, insurance and
other, net 111,030 103,580 7.2 6.5
------- -------
Total $2,788,020 $2,659,095 4.8 3.8
GROSS MARGIN %:
New vehicle retail sales 5.4 5.5
Used vehicle retail sales 5.8 6.0
Used vehicle wholesale
sales (2.9) (4.0)
Total used 4.8 4.7
Parts and service 53.2 53.7
Finance, insurance and
other, net 100.0 100.0
Total 14.7 14.6
GROSS PROFIT:
New vehicle retail sales $85,967 $82,449 4.3 3.2
Used vehicle retail sales 38,353 38,810 (1.2) (2.1)
Used vehicle wholesale
sales (2,372) (3,913) 39.4 39.8
------ ------
Total used 35,981 34,897 3.1 2.1
Parts and service 176,659 166,173 6.3 5.5
Finance, insurance and
other, net 111,030 103,580 7.2 6.5
------- -------
Total $409,637 $387,099 5.8 4.9
UNITS SOLD:
Retail new vehicles sold 42,692 41,636 2.5
Retail used vehicles sold 30,052 30,166 (0.4)
Wholesale used vehicles
sold 12,196 14,015 (13.0)
------ ------
Total used 42,248 44,181 (4.4)
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $37,420 $36,010 3.9 2.9
Used vehicle retail $22,147 $21,479 3.1 2.0
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $2,014 $1,980 1.7 0.6
Used vehicle retail sales 1,276 1,287 (0.9) (1.7)
Used vehicle wholesale
sales (194) (279) 30.5 30.8
Total used 852 790 7.8 6.8
Finance, insurance and
other, net (per retail
unit) $1,526 $1,443 5.8 5.1
OTHER:
SG&A expenses $294,417 $279,538 5.3 4.3
Adjusted SG&A expenses(2) $293,942 $287,382 2.3 1.3
SG&A as % revenues 10.6 10.5
Adjusted SG&A as %
revenues (2) 10.5 10.8
SG&A as % gross profit 71.9 72.2
Adjusted SG&A as % gross
profit (2) 71.8 74.2
Operating margin % 3.3 2.8
Adjusted operating margin
% (2) 3.6 3.3
Twelve Months Ended December 31,
2017 2016 % Increase/ (Decrease) Constant Currency (2) % Increase/ (Decrease)
---- ---- ---------------------- ------------------------------------------------
REVENUES:
New vehicle retail sales $5,962,549 $5,951,471 0.2 0.6
Used vehicle retail sales 2,680,878 2,709,721 (1.1) (0.5)
Used vehicle wholesale
sales 374,148 392,071 (4.6) (3.3)
------- -------
Total used 3,055,026 3,101,792 (1.5) (0.8)
Parts and service 1,302,836 1,239,888 5.1 5.3
Finance, insurance and
other, net 417,905 414,015 0.9 1.2
------- -------
Total $10,738,316 $10,707,166 0.3 0.7
GROSS MARGIN %:
New vehicle retail sales 5.2 5.2
Used vehicle retail sales 6.4 6.6
Used vehicle wholesale
sales (0.7) (1.0)
Total used 5.6 5.7
Parts and service 53.7 54.0
Finance, insurance and
other, net 100.0 100.0
Total 14.9 14.7
GROSS PROFIT:
New vehicle retail sales $311,925 $312,101 (0.1) 0.3
Used vehicle retail sales 172,323 179,794 (4.2) (3.7)
Used vehicle wholesale
sales (2,445) (3,896) 37.2 37.8
------ ------
Total used 169,878 175,898 (3.4) (2.9)
Parts and service 700,116 669,270 4.6 4.9
Finance, insurance and
other, net 417,905 414,015 0.9 1.2
------- -------
Total $1,599,824 $1,571,284 1.8 2.2
UNITS SOLD:
Retail new vehicles sold 165,499 167,958 (1.5)
Retail used vehicles sold 124,148 126,372 (1.8)
Wholesale used vehicles
sold 53,273 55,723 (4.4)
------ ------
Total used 177,421 182,095 (2.6)
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $36,028 $35,434 1.7 2.1
Used vehicle retail $21,594 $21,442 0.7 1.3
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $1,885 $1,858 1.5 1.8
Used vehicle retail sales 1,388 1,423 (2.5) (1.9)
Used vehicle wholesale
sales (46) (70) 34.3 34.9
Total used 957 966 (0.9) (0.4)
Finance, insurance and
other, net (per retail
unit) $1,443 $1,407 2.6 2.8
OTHER:
Adjusted Finance,
insurance and other
revenue, net (2) (3) $424,455 $414,015 2.5 2.8
Adjusted Total Revenue (2) $10,744,866 $10,707,166 0.4 0.8
Adjusted Total Gross
Profit (2) $1,606,374 $1,571,284 2.2 2.6
Adjusted Total Gross
Margin (2) 15.0 14.7
Adjusted Finance,
insurance and other, net
(per retail unit) (2) $1,465 $1,407 4.1 4.4
SG&A expenses $1,179,996 $1,146,049 3.0 3.3
Adjusted SG&A expenses(2) $1,170,756 $1,146,770 2.1 2.4
SG&A as % revenues 11.0 10.7
Adjusted SG&A as %
revenues (2) 10.9 10.7
SG&A as % gross profit 73.8 72.9
Adjusted SG&A as % gross
profit (2) 72.9 73.0
Operating margin % 3.2 3.2
Adjusted operating margin
% (2) 3.5 3.5
(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.
(3) Finance,
insurance
and other
revenue
represents
fees earned
for the
financing of
vehicle
sales
transactions
and from the
sale of
insurance
and vehicle
service
contracts.
Such amounts
are reported
net of
estimated
amounts to
be charged
back in the
future. As
a result,
finance,
insurance
and other
revenue and
gross profit
are the
same.
Reconciliation of Certain Non-GAAP Financial Measures - U.S.
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended December 31,
-------------------------------
2017 2016 % Increase/
(Decrease)
---------
SG&A RECONCILIATION:
As reported $242,070 $227,411 6.4
Pre-tax adjustments:
Gain on real estate and dealership
transactions - 982
Severance costs - (1,837)
Legal settlements (4) - 11,671
Adjusted SG&A (1) $242,070 $238,227 1.6
SG&A AS % REVENUES:
Unadjusted 10.6 10.5
Adjusted(1) 10.6 11.0
SG&A AS % GROSS PROFIT:
Unadjusted 69.0 68.6
Adjusted (1) 69.0 71.9
OPERATING MARGIN %
Unadjusted 4.1 3.8
Adjusted (1), (2) 4.2 3.8
PRETAX MARGIN %:
Unadjusted 2.8 2.7
Adjusted (1), (2) 2.9 2.6
SAME STORE SG&A RECONCILIATION:
As reported $238,151 $229,946 3.6
Pre-tax adjustments:
Severance costs - (1,837)
Legal settlements (4) - 9,864
Adjusted Same Store SG&A (1) $238,151 $237,973 0.1
SAME STORE SG&A AS % REVENUES:
Unadjusted 10.6 10.6
Adjusted (1) 10.6 11.0
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 68.9 69.5
Adjusted (1) 68.9 71.9
SAME STORE OPERATING MARGIN %
Unadjusted 4.1 3.7
Adjusted (1), (3) 4.2 3.8
Twelve Months Ended December 31,
--------------------------------
2017 2016 % Increase/ (Decrease)
---- ---- ----------------------
FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:
As reported $375,954 $377,756 (0.5)
Pre-tax adjustments:
Catastrophic events 6,550 -
Adjusted Finance, insurance and other
revenue, net (1) $382,504 $377,756 1.3
TOTAL REVENUES RECONCILIATION:
As reported $8,680,565 $8,734,672 (0.6)
Pre-tax adjustments:
Catastrophic events 6,550 -
Adjusted Total Revenues (1) $8,687,115 $8,734,672 (0.5)
TOTAL GROSS PROFIT RECONCILIATION:
As reported $1,365,314 $1,355,349 0.7
Pre-tax adjustments:
Catastrophic events 6,550 -
Adjusted Total Gross Profit (1) $1,371,864 $1,355,349 1.2
SG&A RECONCILIATION:
As reported $983,974 $965,139 2.0
Pre-tax adjustments:
Catastrophic events (8,792) (5,873)
Gain (loss) on real estate and dealership
transactions (798) 2,838
Severance costs - (1,837)
Acquisition costs - (30)
Legal settlements (4) 1,113 11,671
Adjusted SG&A (1) $975,497 $971,908 0.4
TOTAL GROSS MARGIN %:
Unadjusted 15.7 15.5
Adjusted (1) 15.8 15.5
FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):
Unadjusted $1,647 $1,599 3.0
Adjusted (1) $1,675 $1,599 4.8
SG&A AS % REVENUES:
Unadjusted 11.3 11.0
Adjusted (1) 11.2 11.1
SG&A AS % OF GROSS PROFIT:
Unadjusted 72.1 71.2
Adjusted (1) 71.1 71.7
OPERATING MARGIN %:
Unadjusted 3.7 3.7
Adjusted (1), (2) 4.0 3.9
PRETAX MARGIN %:
Unadjusted 2.4 2.5
Adjusted (1), (2) 2.7 2.7
SAME STORE FINANCE, INSURANCE AND OTHER REVENUE, NET
RECONCILIATION:
As reported $372,001 $372,581 (0.2)
Pre-tax adjustments:
Catastrophic events 6,550 -
Adjusted Finance, insurance and other
revenue, net (1) $378,551 $372,581 1.6
SAME STORE TOTAL REVENUES RECONCILIATION:
As reported $8,618,652 $8,638,510 (0.2)
Pre-tax adjustments:
Catastrophic events 6,550 -
Adjusted Total Revenues (1) $8,625,202 $8,638,510 (0.2)
SAME STORE TOTAL GROSS PROFIT RECONCILIATION:
As reported $1,355,471 $1,340,981 1.1
Pre-tax adjustments:
Catastrophic events 6,550 -
Adjusted Total Gross Profit (1) $1,362,021 $1,340,981 1.6
SAME STORE SG&A RECONCILIATION:
As reported $975,701 $955,108 2.2
Pre-tax adjustments:
Catastrophic events (8,792) (5,873)
Loss on real estate and dealership
transactions (798) (384)
Severance costs - (1,837)
Acquisition costs - (30)
Legal settlements (4) 1,113 9,864
Adjusted Same Store SG&A (1) $967,224 $956,848 1.1
SAME STORE TOTAL GROSS MARGIN %:
Unadjusted 15.7 15.5
Adjusted (1) 15.8 15.5
SAME STORE FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):
Unadjusted $1,640 $1,600 2.5
Adjusted (1) $1,669 $1,600 4.3
SAME STORE SG&A AS % REVENUES:
Unadjusted 11.3 11.1
Adjusted (1) 11.2 11.1
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 72.0 71.2
Adjusted (1) 71.0 71.4
SAME STORE OPERATING MARGIN %
Unadjusted 3.7 3.7
Adjusted (1), (3) 4.0 4.0
(1) See the
section of
this release
entitled
"Non-GAAP
Financial
Measures"
for
information
regarding
non-GAAP
financial
measures and
certain
selected
items that
the Company
believes
impact
comparability
of financial
results
between
reporting
periods.
(2) Excludes the
impact of
SG&A
reconciling
items above,
as well as
non-cash
asset
impairment
charges of
$3,236 and
$12,762 for
the three
and twelve
months ended
December 31,
2017,
respectively,
and $9,406
and $21,794
for the
three and
twelve
months ended
December 31,
2016,
respectively.
(3) Excludes the
impact of
Same Store
SG&A
reconciling
items above,
as well as
non-cash
asset
impairment
charges of
$3,236 and
$12,762 for
the three
and twelve
months ended
December 31,
2017,
respectively,
and $9,343
and $21,671
for the
three and
twelve
months ended
December 31,
2016,
respectively.
(4) For the
twelve
months ended
December 31,
2017 the
Company
recognized a
net pre-tax
gain related
to a
settlement
with an OEM
of $1.8
million
($1.1
million on a
Same Store
basis). For
the three
and twelve
months ended
December 31,
2016,
respectively,
the Company
recognized a
net pre-tax
gain related
to a
settlement
with an OEM
of $11.7
million
($9.9
million on a
Same Store
basis).
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - U.K.
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended December 31,
-------------------------------
2017 2016 % Increase/
(Decrease)
---------
SG&A RECONCILIATION:
As reported $54,095 $39,482 37.0
Pre-tax adjustments:
Loss on real estate and dealership
transactions - (223)
Severance costs - (122)
Adjusted SG&A (1) $54,095 $39,137 38.2
SG&A AS % REVENUES:
Unadjusted 10.7 10.2
Adjusted (1) 10.7 10.1
SG&A AS % GROSS PROFIT:
Unadjusted 89.5 88.9
Adjusted (1) 89.5 88.1
OPERATING MARGIN %
Unadjusted 0.8 0.8
Adjusted (1), (2) 0.8 0.9
PRETAX MARGIN %:
Unadjusted 0.3 0.2
Adjusted (1), (2) 0.3 0.3
SAME STORE SG&A RECONCILIATION:
As reported $43,033 $38,468 11.9
Pre-tax adjustments:
Loss on real estate and dealership
transactions - (61)
Severance costs - (122)
Adjusted Same Store SG&A (1) $43,033 $38,285 12.4
SAME STORE SG&A AS % REVENUES:
Unadjusted 10.5 10.0
Adjusted (1) 10.5 10.0
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 87.1 87.4
Adjusted (1) 87.1 87.0
SAME STORE OPERATING MARGIN %
Unadjusted 1.1 1.0
Adjusted (1), (3) 1.1 1.1
Twelve Months Ended December 31,
--------------------------------
2017 2016 % Increase/(Decrease)
---- ---- ---------------------
SG&A RECONCILIATION:
As reported $191,570 $158,636 20.8
Pre-tax adjustments:
Loss on real estate and dealership
transactions - (223)
Severance costs - (122)
Acquisition costs (288) (561)
Adjusted SG&A (1) $191,282 $157,730 21.3
SG&A AS % REVENUES:
Unadjusted 9.6 9.2
Adjusted (1) 9.6 9.2
SG&A AS % OF GROSS PROFIT:
Unadjusted 85.0 82.2
Adjusted (1) 84.9 81.7
OPERATING MARGIN %:
Unadjusted 1.3 1.6
Adjusted (1), (2) 1.3 1.7
PRETAX MARGIN %:
Unadjusted 0.9 1.1
Adjusted (1), (2) 0.9 1.1
SAME STORE SG&A RECONCILIATION:
As reported $156,369 $150,626 3.8
Pre-tax adjustments:
Loss on real estate and dealership
transactions - (61)
Severance costs - (122)
Acquisition costs (288) (561)
Adjusted Same Store SG&A (1) $156,081 $149,882 4.1
SAME STORE SG&A AS % REVENUES:
Unadjusted 9.3 9.0
Adjusted (1) 9.3 8.9
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 81.8 80.1
Adjusted (1) 81.7 79.7
SAME STORE OPERATING MARGIN %
Unadjusted 1.7 1.8
Adjusted (1), (3) 1.7 1.9
(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
$201 for the
three and
twelve
months ended
December 31,
2016,
respectively.
(3) Excludes the
impact of
Same Store
SG&A
reconciling
items above,
as well as
non-cash
asset
impairment
charges of
$201 for the
three and
twelve
months ended
December 31,
2016,
respectively.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - Brazil
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended December 31,
-------------------------------
2017 2016 % Increase/
(Decrease)
---------
SG&A RECONCILIATION:
As reported $13,356 $12,178 9.7
Pre-tax adjustments:
Severance costs (475) -
Adjusted SG&A (1) $12,881 $12,178 5.8
SG&A AS % REVENUES:
Unadjusted 10.7 10.6
Adjusted (1) 10.3 10.6
SG&A AS % GROSS PROFIT:
Unadjusted 91.7 90.6
Adjusted (1) 88.4 90.6
OPERATING MARGIN %
Unadjusted (4.7) (8.2)
Adjusted (1), (2) 1.1 0.8
PRETAX MARGIN %:
Unadjusted (4.9) (8.5)
Adjusted (1), (2) 0.9 0.5
SAME STORE SG&A RECONCILIATION:
As reported $13,233 $11,124 19.0
Pre-tax adjustments:
Severance costs (475) -
Adjusted Same Store SG&A (1) $12,758 $11,124 14.7
SAME STORE SG&A AS % REVENUES:
Unadjusted 10.8 10.5
Adjusted (1) 10.4 10.5
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 92.0 90.5
Adjusted (1) 88.7 90.5
SAME STORE OPERATING MARGIN %
Unadjusted (4.9) (9.1)
Adjusted (1), (3) 1.0 0.8
Twelve Months Ended December 31,
--------------------------------
2017 2016 % Increase/ (Decrease)
---- ---- ----------------------
SG&A RECONCILIATION:
As reported $50,651 $46,988 7.8
Pre-tax adjustments:
Loss on real estate and dealership
transactions - (372)
Severance costs (475) -
Foreign transaction tax - (274)
Adjusted SG&A (1) $50,176 $46,342 8.3
SG&A AS % REVENUES:
Unadjusted 11.1 10.9
Adjusted (1) 11.0 10.8
SG&A AS % OF GROSS PROFIT:
Unadjusted 92.2 100.5
Adjusted (1) 91.3 99.2
OPERATING MARGIN %:
Unadjusted (0.9) (2.9)
Adjusted (1), (2) 0.7 (0.2)
PRETAX MARGIN %:
Unadjusted (1.0) (3.0)
Adjusted (1), (2) 0.6 (0.3)
SAME STORE SG&A RECONCILIATION:
As reported $47,926 $40,315 18.9
Pre-tax adjustments:
Severance costs (475) -
Foreign transaction tax - (274)
Adjusted Same Store SG&A (1) $47,451 $40,041 18.5
SAME STORE SG&A AS % REVENUES:
Unadjusted 10.9 10.3
Adjusted (1) 10.8 10.2
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 90.0 95.2
Adjusted (1) 89.1 94.6
SAME STORE OPERATING MARGIN %
Unadjusted (0.6) (2.4)
Adjusted (1), (3) 1.0 0.3
(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
$6,744 for
the three
and twelve
months ended
December 31,
2017,
respectively,
and $10,420
and $10,843
for the
three and
twelve
months ended
December 31,
2016,
respectively.
(3) Excludes the
impact of
Same Store
SG&A
reconciling
items above,
as well as
non-cash
asset
impairment
charges of
$6,744 for
the three
and twelve
months ended
December 31,
2017,
respectively,
and $10,420
for the
three and
twelve
months ended
December 31,
2016,
respectively.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - CONSOLIDATED
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended December 31,
-------------------------------
2017 2016 % Increase/
(Decrease)
---------
NET INCOME RECONCILIATION:
As reported
Pretax Net Income $58,974 $48,520
Income Tax Benefit (Provision) 51,515 (17,692)
------
Net Income $110,489 $30,828 258.4
Effective Tax Rate (87.4)% 36.5%
Pre-tax adjustments:
(Gain) loss on real estate and dealership
transactions
Pre-tax - (529)
Tax impact - 264
Severance costs
Pre-tax 475 1,959
Tax impact (122) (710)
Legal settlements (4)
Pre-tax - (11,671)
Tax impact - 4,359
Non-cash asset impairment
Pre-tax 9,979 19,797
Tax impact (3,515) (7,041)
Tax rate changes
Pre-tax - -
Tax impact (73,028) -
Adjusted
Pretax Net Income $69,428 $58,076
Income Tax Provision (25,150) (20,820)
Adjusted net income (1) $44,278 $37,256 23.4
Effective Tax Rate 36.2% 35.8%
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED
COMMON SHARES RECONCILIATION:
Adjusted net income (1) $44,278 $37,256 23.4
Less: Adjusted earnings allocated to participating
securities 1,483 1,477 0.4
Adjusted net income available to diluted common
shares (1) $42,795 $35,779 19.6
DILUTED INCOME PER COMMON SHARE RECONCILIATION:
As reported $5.27 $1.44 266.0
After-tax adjustments:
Gain on real estate and dealership transactions - (0.01)
Severance costs 0.02 0.06
Legal settlements - (0.34)
Non-cash asset impairment 0.30 0.59
Tax rate changes (3.48) -
Adjusted diluted income per share(1) $2.11 $1.74 25.9
SG&A RECONCILIATION:
As reported $309,521 $279,071 10.9
Pre-tax adjustments:
Gain on real estate and dealership transactions - 759
Severance costs (475) (1,959)
Legal settlements (4) - 11,671
Adjusted SG&A (1) $309,046 $289,542 6.7
SG&A AS % REVENUES:
Unadjusted 10.6 10.4
Adjusted (1) 10.6 10.8
SG&A AS % GROSS PROFIT:
Unadjusted 72.7 71.7
Adjusted (1) 72.6 74.4
OPERATING MARGIN %
Unadjusted 3.1 2.9
Adjusted (1), (2) 3.5 3.2
PRETAX MARGIN %:
Unadjusted 2.0 1.8
Adjusted (1), (2) 2.4 2.2
SAME STORE SG&A RECONCILIATION:
As reported $294,417 $279,538 5.3
Pre-tax adjustments:
Loss on real estate and dealership transactions - (61)
Severance costs (475) (1,959)
Legal settlements (4) - 9,864
Adjusted Same Store SG&A (1) $293,942 $287,382 2.3
SAME STORE SG&A AS % REVENUES:
Unadjusted 10.6 10.5
Adjusted (1) 10.5 10.8
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 71.9 72.2
Adjusted (1) 71.8 74.2
SAME STORE OPERATING MARGIN %
Unadjusted 3.3 2.8
Adjusted (1), (3) 3.6 3.3
Twelve Months Ended December 31,
--------------------------------
2017 2016 % Increase/ (Decrease)
---- ---- ----------------------
NET INCOME RECONCILIATION:
As reported
Pretax Net Income $219,003 $227,371
Income Tax Provision (5,561) (80,306)
-------
Net Income $213,442 $147,065 45.1
Effective Tax Rate 2.5% 35.3%
Adjustments:
Catastrophic events
Pre-tax 15,342 5,873
Tax impact (5,926) (2,207)
(Gain) loss on real estate and dealership
transactions
Pre-tax 798 (1,530)
Tax impact (301) 937
Severance costs
Pre-tax 475 1,959
Tax impact (122) (710)
Acquisition costs including related tax impact
Pre-tax 288 591
Tax impact - (11)
Legal settlements (4)
Pre-tax (1,113) (11,671)
Tax impact 426 4,359
Foreign transaction tax
Pre-tax - 274
Tax impact - -
Non-cash asset impairment
Pre-tax 19,505 32,124
Tax impact (7,094) (11,676)
Allowance for uncertain tax positions
Pre-tax - -
Tax impact 834 -
Tax rate changes
Pre-tax - -
Tax impact (73,028) -
Foreign deferred income tax benefit
Pre-tax - -
Tax impact - (1,686)
Adjusted
Pretax Net Income $254,298 $254,991
Income Tax Provision (90,772) (91,300)
Adjusted net income (1) $163,526 $163,691 (0.1)
Effective Tax Rate 35.7% 35.8%
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED
COMMON SHARES RECONCILIATION:
Adjusted net income (1) $163,526 $163,691 (0.1)
Less: Adjusted earnings allocated to participating
securities 5,738 6,537 (12.2)
Adjusted net income available to diluted common
shares (1) $157,788 $157,154 0.4
DILUTED INCOME PER COMMON SHARE RECONCILIATION:
As reported $10.08 $6.67 51.1
After-tax adjustments:
Catastrophic events 0.45 0.17
(Gain) loss on real estate and dealership
transactions 0.03 (0.03)
Severance costs 0.01 0.05
Acquisition costs including related tax impact 0.01 0.02
Legal settlements (0.03) (0.33)
Foreign transaction tax - 0.01
Non-cash asset impairment 0.59 0.93
Allowance for uncertain tax positions 0.04 -
Tax rate changes (3.45) -
Foreign deferred income tax benefit - (0.07)
Adjusted diluted income per share (1) $7.73 $7.42 4.2
FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:
As reported $429,002 $420,654 2.0
Pre-tax adjustments:
Catastrophic events 6,550 -
Adjusted Finance, insurance and other revenue, net
(1) $435,552 $420,654 3.5
TOTAL REVENUES RECONCILIATION:
As reported $11,123,721 $10,887,612 2.2
Pre-tax adjustments:
Catastrophic events 6,550 -
Adjusted Total Revenues (1) $11,130,271 $10,887,612 2.2
TOTAL GROSS PROFIT RECONCILIATION:
As reported $1,645,509 $1,595,069 3.2
Pre-tax adjustments:
Catastrophic events 6,550 -
Adjusted Total Gross Profit (1) $1,652,059 $1,595,069 3.6
SG&A RECONCILIATION:
As reported $1,226,195 $1,170,763 4.7
Pre-tax adjustments:
Catastrophic events (8,792) (5,873)
Gain (loss) on real estate and dealership
transactions (798) 2,243
Severance costs (475) (1,959)
Acquisition costs (288) (591)
Legal settlements (4) 1,113 11,671
Foreign transaction tax - (274)
Adjusted SG&A (1) $1,216,955 $1,175,980 3.5
TOTAL GROSS MARGIN %:
Unadjusted 14.8 14.7
Adjusted (1) 14.8 14.7
FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):
Unadjusted $1,420 $1,397 1.6
Adjusted (1) $1,442 $1,397 3.2
SG&A AS % REVENUES:
Unadjusted 11.0 10.8
Adjusted (1) 10.9 10.8
SG&A AS % OF GROSS PROFIT:
Unadjusted 74.5 73.4
Adjusted (1) 73.7 73.7
OPERATING MARGIN %:
Unadjusted 3.1 3.1
Adjusted (1), (2) 3.4 3.4
PRETAX MARGIN %:
Unadjusted 2.0 2.1
Adjusted(1), (2) 2.3 2.3
SAME STORE FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:
As reported $417,905 $414,015 0.9
Pre-tax adjustments:
Catastrophic events 6,550 -
Adjusted Finance, insurance and other revenue, net
(1) $424,455 $414,015 2.5
SAME STORE TOTAL REVENUES RECONCILIATION:
As reported $10,738,316 $10,707,166 0.3
Pre-tax adjustments:
Catastrophic events 6,550 -
Adjusted Total Revenues (1) $10,744,866 $10,707,166 0.4
SAME STORE TOTAL GROSS PROFIT RECONCILIATION:
As reported $1,599,824 $1,571,284 1.8
Pre-tax adjustments:
Catastrophic events 6,550 -
Adjusted Total Gross Profit(1) $1,606,374 $1,571,284 2.2
SAME STORE SG&A RECONCILIATION:
As reported $1,179,996 $1,146,049 3.0
Pre-tax adjustments:
Catastrophic events (8,792) (5,873)
Loss on real estate and dealership transactions (798) (446)
Severance costs (475) (1,959)
Acquisition costs (288) (591)
Legal settlements (4) 1,113 9,864
Foreign transaction tax - (274)
Adjusted Same Store SG&A (1) $1,170,756 $1,146,770 2.1
SAME STORE TOTAL GROSS MARGIN %:
Unadjusted 14.9 14.7
Adjusted (1) 15.0 14.7
SAME STORE FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):
Unadjusted $1,443 $1,407 2.6
Adjusted(1) $1,465 $1,407 4.1
SAME STORE SG&A AS % REVENUES:
Unadjusted 11.0 10.7
Adjusted (1) 10.9 10.7
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 73.8 72.9
Adjusted (1) 72.9 73.0
SAME STORE OPERATING MARGIN %
Unadjusted 3.2 3.2
Adjusted (1), (3) 3.5 3.5
(1) See the section of
this release
entitled "Non-
GAAP Financial
Measures" for
information
regarding non-
GAAP financial
measures and
certain selected
items that the
Company believes
impact
comparability of
financial results
between reporting
periods.
(2) Excludes the impact
of SG&A
reconciling items
above, as well as
non-cash asset
impairment charges
of $9,979 and
$19,505 for the
three and twelve
months ended
December 31, 2017,
respectively, and
$20,027 and
$32,838 for the
three and twelve
months ended
December 31, 2016,
respectively.
(3) Excludes the impact
of Same Store SG&A
reconciling items
above, as well as
non-cash asset
impairment charges
of $9,979 and
$19,505 for the
three and twelve
months ended
December 31, 2017,
respectively, and
$19,965 and
$32,292 for the
three and twelve
months ended
December 31, 2016,
respectively.
(4) For the twelve
months ended
December 31, 2017
the Company
recognized a net
pre-tax gain
related to a
settlement with an
OEM of $1.8
million ($1.1
million on a Same
Store basis). For
the three and
twelve months
ended December 31,
2016,
respectively, the
Company recognized
a net pre-tax
gain related to a
settlement with an
OEM of $11.7
million ($9.9
million on a Same
Store basis).
View original content:http://www.prnewswire.com/news-releases/group-1-automotive-reports-record-fourth-quarter--full-year-2017-financial-results-300595571.html
SOURCE Group 1 Automotive, Inc.
