Group 1 Automotive Announces First Quarter 2018 Financial Results
Group 1 Automotive Announces First Quarter 2018 Financial Results
Strong U.S. Performance in March and Benefits from New Tax Law Drive Record Earnings
HOUSTON, April 26, 2018 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), ("Group 1" or the "Company"), an international, Fortune 500 automotive retailer, today reported 2018 first quarter net income of $35.8 million, and diluted earnings per common share of $1.70. There were no non-GAAP adjustments for the first quarter of 2018.
In comparison, Group 1 generated $33.9 million of net income, $32.8 million of adjusted net income (a non-GAAP measure), $1.58 of diluted earnings per common share and $1.53 of adjusted diluted earnings per common share (a non-GAAP measure) for the first quarter of 2017. First quarter 2017 adjusted net income and diluted earnings per share exclude a non-core benefit of approximately $1.1 million after-tax, or $0.05 per share, related to a settlement with an Original Equipment Manufacturer (OEM). Reconciliations of non-GAAP financial measures are included in the attached financial tables.
"An acceleration of our U.S. business in March allowed us to deliver record first quarter revenue of $2.9 billion, which coupled with the benefits from the new U.S. tax law, drove record first quarter earnings per share of $1.70," said Earl J. Hesterberg, Group 1's president and chief executive officer. "We also received a major contribution from our U.K. operations despite an extremely weak new vehicle sales market, which declined 12.4 percent in the first quarter. We generated a 26 percent increase in overall gross profit for the quarter in the U.K. on a constant currency basis, driven by an impressive 5 percent increase in same store used vehicle unit sales and the efficient integration of two recent dealer group acquisitions. Additionally, we are pleased to report continued recovery in the Brazilian market, where Same Store total revenue increased 20 percent on a constant currency basis."
Consolidated Results for First Quarter 2018 (year-over-year comparable basis)
For ease of comparison, we have included constant currency metrics (a non-GAAP measure) both below (shown in parenthesis) and in the financial tables that follow:
-- Total revenue grew 13.5 percent (10.8 percent) to $2.9 billion.
-- Total gross profit grew 9.4 percent (7.5 percent), to $419.8 million.
-- New vehicle revenues increased 13.2 percent (10.4 percent) on 7.6
percent higher unit sales. New vehicle gross profit improved 9.0 percent
(6.1 percent), to $75.4 million.
-- Retail used vehicle revenues increased 18.1 percent (15.0 percent) on
14.7 percent higher unit sales. Retail used vehicle gross profit
decreased 3.4 percent (decreased 5.3 percent), to $43.5 million, with
the decline more than offset by stronger wholesale used vehicle gross
profit, which increased $1.6 million. Total used vehicle gross profit
was up slightly, to $45.2 million.
-- Parts and service gross profit increased 8.4 percent (6.6 percent) on
revenue growth of 9.3 percent (7.6 percent). Same Store parts and
service gross profit increased 3.3 percent (1.9 percent) on revenue
growth of 4.6 percent (3.3 percent).
-- Finance and Insurance (F&I) gross profit per retail unit (PRU) increased
4.7 percent (3.3 percent), to $1,451 and total F&I gross profit
increased $15.5 million, or 16.0 percent (14.4 percent), reflecting
strong new and used retail unit growth, as well as the improvement in
PRU.
-- Selling, General and Administrative (SG&A) expenses as a percent of
gross profit increased 170 basis points, to 77.3 percent. Compared with
adjusted 2017 SG&A expense levels, SG&A as a percent of gross profit
increased 130 basis points, to 77.3 percent. As disclosed in the
Company's press release on March 19, 2018, included within the 2018
first quarter results are $3 million of costs associated with a one-time
bonus to qualified U.S. employees and approximately $3 million of costs
associated with the Company's new strategic initiatives.
-- Provision for income taxes declined 40.0 percent to $10.4 million, or
22.4 percent of income before income taxes, primarily reflecting the
impact of the U.S. Tax Reform Bill that reduced the U.S. corporate
income tax rate.
Segment Results for First Quarter 2018 (year-over-year comparable basis)
-- United States:The Company's U.S. operations accounted for 73.0 percent
of total revenues and 80.0 percent of total gross profit. Total U.S.
revenues were $2.1 billion, an increase of 6.1 percent, driven by
increases in new vehicle revenue (up 7.0 percent), used retail (up 8.0
percent), parts and service (up 4.9 percent), and a 12.1 percent
increase in F&I revenue. F&I gross profit PRU grew $81, or 4.9 percent
per unit, to an all-time record of $1,718; and total gross profit grew
4.7 percent, to $335.7 million. New vehicle retail gross profit PRU
decreased $9, to $1,853. Used vehicle retail gross profit PRU declined
$296, to $1,226. This decline was significantly more pronounced in our
luxury brands, and primarily in our certified pre-owned (CPO) business
as we work with our OEM partners to absorb an increased supply of
off-lease and loaner vehicles. Additionally, a portion of the decline
relates to the continuing shift in consumer demand from cars to trucks.
SG&A expenses as a percent of gross profit increased 170 basis points to
75.4 percent and operating margin decreased 40 basis points to 3.3
percent. These costs include $3 million for the one-time bonus paid to
our U.S. non-managerial staff, as well as approximately $3 million
associated with our new initiatives in used and parts and service."As we
announced in March, we have launched several important strategic
initiatives in our U.S. market that are designed to expand our used car
sales and further strengthen our parts and service operations. Although
it is still very early, we are encouraged by the initial results," said
Daryl Kenningham, Group 1's president of U.S. operations. "Same Store
used retail unit sales increased 7.7 percent in the U.S. during the
quarter, the highest growth we have seen in ten quarters. In addition,
we have installed our new work schedule in 65 of our U.S. dealerships as
of March 31, 2018, and we are already seeing an improvement in retention
and hiring, with a 17 percent increase in our service advisor headcount
from the same period last year. Although these actions have added some
costs in the near-term, we remain confident these investments will allow
us to accelerate growth later this year and going forward."
-- United Kingdom:The Company's U.K. operations accounted for 23.1 percent
of total revenues and 17.0 percent of total gross profit. Total U.K.
revenues increased 46.7 percent (30.3 percent), to $660.5 million,
driven by double-digit revenue growth across each business segment,
despite the industry decreasing by over 12 percent. Total gross profit
increased 42.1 percent (26.2 percent), to $71.5 million. SG&A expenses
as a percent of gross profit increased 60 basis points to 83.4 percent
and operating margin decreased 30 basis points to 1.3 percent.
-- Brazil:The Company's Brazilian operations were approximately breakeven
during the first quarter (traditionally the weakest quarter of the year)
and accounted for 3.9 percent of total revenues and 3.0 percent of total
gross profit. The Company's Same Store new vehicle revenue grew 23.5
percent on a constant currency basis, with units up 23.3 percent, which
significantly outpaced the industry's unit sales increase of 14.7
percent. On a Same Store basis, total revenues grew 19.9 percent, driven
by revenue growth of the aforementioned 23.5 percent in new vehicles,
16.6 percent in total used vehicles, 10.4 percent in parts & service,
and 8.5 percent in F&I.SG&A expenses as a percent of gross profit
improved 60 basis points to 93.5 percent.
Share Repurchase Authorization
For the first quarter of 2018, the Company repurchased 135,605 shares at an average price per common share of $67.83 for a total of $9.2 million. As of April 26, 2018, $40.4 million remains available under the Company's common stock share repurchase authorization.
Future repurchases may be made from time to time, based on market conditions, legal requirements and other corporate considerations, in the open market or in privately negotiated transactions, and subject to Board approval and covenant restrictions.
Corporate Development
As previously announced in 2018, the Company:
-- Acquired Toyota Alpha Trevo Automoveis Ltda in western São Paulo of
Brazil in April 2018, which will operate as T-Drive Toyota Alphaville,
and is expected to generate approximately $45 million in annualized
revenues;
-- Acquired five Mercedes-Benz franchises and three Smart franchises
northeast of London in the U.K. at the end of February 2018, which are
expected to generate approximately $260 million in annualized revenues;
-- Acquired Audi El Paso and Subaru El Paso in January 2018 in West Texas,
which are expected to generate approximately $65 million in annualized
revenues; and
-- Opened a Land Rover franchise in January 2018 in Watford, a North London
suburb in the U.K., which is expected to generate approximately $35
million in annualized revenues.
Year-to-date 2018, the Company has acquired a total of 12 franchises, which are expected to generate an estimated $405 million in annual revenues.
First Quarter 2018 Earnings Conference Call Details
Group 1's senior management will host a conference call today at 10 a.m. ET to discuss the first quarter financial results and the Company's outlook and strategy.
The conference call will be simulcast live on the Internet at www.group1auto.com, then click on 'Investor Relations' and then 'Events' or through this link: http://www.group1corp.com/events. A webcast replay will be available for 30 days.
The conference call will also be available live by dialing in 15 minutes prior to the start of the call at:
Domestic: 1-888-317-6003
International: 1-412-317-6061
Conference ID: 6796253
A telephonic replay will be available following the call through May 3, 2018 by dialing:
Domestic: 1-877-344-7529
International: 1-412-317-0088
Replay ID: 10118929
ABOUT GROUP 1 AUTOMOTIVE, INC.
Group 1 owns and operates 181 automotive dealerships, 239 franchises, and 48 collision centers in the United States, the United Kingdom and Brazil that offer 32 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service contracts; provides automotive maintenance and repair services; and sells vehicle parts.
Investors please visit www.group1corp.com, www.group1auto.com, www.group1collision.com, www.facebook.com/group1auto, and www.twitter.com/group1auto, where Group 1 discloses additional information about the Company, its business, and its results of operations.
FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements related to future, not past, events and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. In this context, the forward-looking statements often include statements regarding our goals, plans, projections and guidance regarding our financial position, results of operations, market position, pending and potential future acquisitions and business strategy, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should," "foresee," "may" or "will" and similar expressions. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Any such forward-looking statements are not assurances of future performance and involve risks and uncertainties that may cause actual results to differ materially from those set forth in the statements. These risks and uncertainties include, among other things, (a) general economic and business conditions, (b) the level of manufacturer incentives, (c) the future regulatory environment, (d) our ability to obtain an inventory of desirable new and used vehicles, (e) our relationship with our automobile manufacturers and the willingness of manufacturers to approve future acquisitions, (f) our cost of financing and the availability of credit for consumers, (g) our ability to complete acquisitions and dispositions and the risks associated therewith, (h) foreign exchange controls and currency fluctuations, and (i) our ability to retain key personnel. For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with the SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.
NON-GAAP FINANCIAL MEASURES
In addition to evaluating the financial condition and results of our operations in accordance with GAAP, from time to time our management evaluates and analyzes results and any impact on the Company of strategic decisions and actions relating to, among other things, cost reduction, growth, and profitability improvement initiatives, and other events outside of normal, or "core," business and operations, by considering alternative financial measures not prepared in accordance with GAAP. This includes evaluating measures such as adjusted selling, general and administrative expenses, adjusted net income and adjusted diluted earnings per share. These adjusted measures are not measures of financial performance under U.S. GAAP, but are instead considered non-GAAP financial performance measures. Non-GAAP measures do not have definitions under GAAP and may be defined differently by and not be comparable to similarly titled measures used by other companies. As a result, any non-GAAP financial measures considered and evaluated by management are reviewed in conjunction with a review of the most directly comparable measures calculated in accordance with GAAP. We caution investors not to place undue reliance on such non-GAAP measures, but also to consider them with the most directly comparable GAAP measures. In our evaluation of results from time to time, we exclude items that do not arise directly from core operations, such as non-cash asset impairment charges, gains and losses on dealership franchise or real estate transactions, and catastrophic weather events such as hail storms, hurricanes, and snow storms. Because these non-core charges and gains materially affect the Company's financial condition or results in the specific period in which they are recognized, management also evaluates, and makes resource allocation and performance evaluation decisions based on, the related non-GAAP measures excluding such items.
In addition to using such non-GAAP measures to evaluate results in a specific period, management believes that such measures may provide more complete and consistent comparisons of operational performance on a period-over-period historical basis and a better indication of expected future trends. Our management also uses these adjusted measures in conjunction with U.S. GAAP financial measures to assess our business, including communication with our Board of Directors, investors and industry analysts concerning financial performance. We disclose these non-GAAP measures, and the related reconciliations, because we believe investors use these metrics in evaluating longer-term period-over-period performance, and to allow investors to better understand and evaluate the information used by management to assess operating performance. The exclusion of certain expenses in the calculation of non-GAAP financial measures should not be construed as an inference that these costs are unusual or infrequent. We anticipate excluding these expenses in the future presentation of our non-GAAP financial measures.
In addition, we evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our underlying business and results of operations, consistent with how we evaluate our performance. We calculate constant currency percentages by converting our current period reported results for entities reporting in currencies other than United States dollars using comparative period exchange rates rather than the actual exchange rates in effect during the respective periods. The constant currency performance measures should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with U.S. GAAP.
Investor contacts:
Sheila Roth
Manager, Investor Relations
Group 1 Automotive, Inc.
713-647-5741 | sroth@group1auto.com
Media contacts:
Pete DeLongchamps
Senior Vice President, Manufacturer Relations, Financial Services and Public Affairs
Group 1 Automotive, Inc.
713-647-5770 | pdelongchamps@group1auto.com
or
Clint Woods
Pierpont Communications, Inc.
713-627-2223 | cwoods@piercom.com
Group 1 Automotive, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended March 31,
----------------------------
2018 2017 % Increase/
(Decrease)
----------
REVENUES:
New vehicle retail sales $1,513,590 $1,337,213 13.2
Used vehicle retail sales 780,570 660,927 18.1
Used vehicle wholesale sales 104,029 104,157 (0.1)
Parts and service 349,515 319,698 9.3
Finance, insurance and other, net 112,322 96,834 16.0
------- ------
Total revenues 2,860,026 2,518,829 13.5
COST OF SALES:
New vehicle retail sales 1,438,163 1,267,986 13.4
Used vehicle retail sales 737,075 615,922 19.7
Used vehicle wholesale sales 102,374 104,057 (1.6)
Parts and service 162,651 147,342 10.4
------- -------
Total cost of sales 2,440,263 2,135,307 14.3
GROSS PROFIT 419,763 383,522 9.4
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 324,347 289,779 11.9
DEPRECIATION AND AMORTIZATION EXPENSE 16,342 13,606 20.1
OPERATING INCOME 79,074 80,137 (1.3)
OTHER EXPENSE:
Floorplan interest expense (14,087) (11,942) 18.0
Other interest expense, net (18,820) (16,999) 10.7
------- -------
INCOME BEFORE INCOME TAXES 46,167 51,196 (9.8)
PROVISION FOR INCOME TAXES (10,353) (17,257) (40.0)
NET INCOME $35,814 $33,939 5.5
======= =======
Less: Earnings allocated to participating securities $1,208 $1,250 (3.4)
Earnings available to diluted common shares $34,606 $32,689 5.9
======= =======
DILUTED EARNINGS PER SHARE $1.70 $1.58 7.6
Weighted average dilutive common shares outstanding 20,307 20,698 (1.9)
Weighted average participating securities 715 818 (12.6)
--- ---
Total weighted average shares outstanding 21,022 21,516 (2.3)
Group 1 Automotive, Inc.
Consolidated Balance Sheets
(Dollars in thousands)
March 31, December 31, % Increase/
2018 2017 (Decrease)
---- ---- ---------
ASSETS: (Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $33,090 $28,787 14.9
Contracts in transit and vehicle receivables, net 297,885 306,433 (2.8)
Accounts and notes receivable, net 200,159 188,611 6.1
Inventories, net 1,804,176 1,763,293 2.3
Prepaid expenses and other current assets 77,888 42,062 85.2
------ ------
Total current assets 2,413,198 2,329,186 3.6
PROPERTY AND EQUIPMENT, net 1,357,870 1,318,959 3.0
GOODWILL AND INTANGIBLE FRANCHISE RIGHTS 1,255,736 1,198,666 4.8
OTHER ASSETS 31,674 24,254 30.6
Total assets $5,058,478 $4,871,065 3.8
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES:
Floorplan notes payable - credit facility and other $1,199,741 $1,240,695 (3.3)
Offset account related to floorplan notes payable - credit facility (74,359) (86,547) (14.1)
Floorplan notes payable - manufacturer affiliates 420,315 397,183 5.8
Offset account related to floorplan notes payable - manufacturer affiliates (24,000) (22,500) 6.7
Current maturities of long-term debt and short-term financing 58,195 77,609 (25.0)
Current liabilities from interest rate risk management activities 1,177 1,996 (41.0)
Accounts payable 491,841 412,981 19.1
Accrued expenses 194,248 177,070 9.7
------- -------
Total current liabilities 2,267,158 2,198,487 3.1
5.00% SENIOR NOTES (principal of $550,000 at March 31, 2018 and December 31, 542,474 542,063 0.1
2017, respectively)
5.25% SENIOR NOTES (principal of $300,000 at March 31, 2018 and December 31, 296,295 296,151 -
2017, respectively)
ACQUISITION LINE 28,035 26,988 3.9
REAL ESTATE RELATED AND OTHER LONG-TERM DEBT, net of current maturities 447,540 405,950 10.2
CAPITAL LEASE OBLIGATIONS RELATED TO REAL ESTATE, net of current maturities 62,426 47,032 32.7
DEFERRED INCOME TAXES 134,800 124,404 8.4
LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES 3,512 8,583 (59.1)
OTHER LIABILITIES 98,159 97,125 1.1
STOCKHOLDERS' EQUITY:
Common stock 255 255 -
Additional paid-in capital 286,244 291,461 (1.8)
Retained earnings 1,288,052 1,246,323 3.3
Accumulated other comprehensive loss (105,950) (123,226) (14.0)
Treasury stock (290,522) (290,531) -
-------- --------
Total stockholders' equity 1,178,079 1,124,282 4.8
Total liabilities and stockholders' equity $5,058,478 $4,871,065 3.8
========== ==========
Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
Three Months Ended
March 31,
---------
2018 (%) 2017 (%)
------- -------
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
Region Geographic Market
------ -----------------
United States Texas 34.9 34.8
California 6.5 7.9
Oklahoma 6.0 6.4
Massachusetts 4.8 4.2
Georgia 4.3 4.5
Florida 2.5 2.5
Louisiana 1.8 2.1
New Hampshire 1.8 1.8
New Jersey 1.6 1.6
South Carolina 1.5 1.3
Kansas 1.4 1.6
Mississippi 1.2 1.5
Alabama 0.7 1.2
Maryland 0.5 0.4
New Mexico 0.1 -
---
69.6 71.8
International United Kingdom 25.4 23.6
Brazil 5.0 4.6
---
100.0 100.0
===== =====
NEW VEHICLE UNIT SALES BRAND MIX:
---------------------------------
Toyota/Scion/Lexus 24.1 23.2
Volkswagen/Audi/Porsche 13.6 12.5
BMW/MINI 12.7 14.3
Ford/Lincoln 11.3 12.8
Honda/Acura 9.5 9.1
Nissan 6.7 8.2
Chevrolet/GMC/Buick/Cadillac 5.8 6.7
Mercedes-Benz/smart/Sprinter 4.7 3.9
Chrysler/Dodge/Jeep/RAM 4.1 3.7
Hyundai/Kia 3.9 3.4
Other 3.6 2.2
100.0 100.0
===== =====
Group 1 Automotive, Inc.
Additional Information - U.S.
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended March 31,
----------------------------
2018 2017 % Increase/
(Decrease)
----------
REVENUES:
New vehicle retail sales $1,089,953 $1,018,249 7.0
Used vehicle retail sales 563,830 521,947 8.0
Used vehicle wholesale sales 54,002 70,545 (23.5)
------ ------
Total used 617,832 592,492 4.3
Parts and service 284,514 271,159 4.9
Finance, insurance and other, net 96,187 85,819 12.1
------ ------
Total $2,088,486 $1,967,719 6.1
GROSS MARGIN %:
New vehicle retail sales 4.9 5.0
Used vehicle retail sales 5.9 7.3
Used vehicle wholesale sales 2.7 (0.5)
Total used 5.7 6.3
Parts and service 53.2 53.8
Finance, insurance and other, net 100.0 100.0
Total 16.1 16.3
GROSS PROFIT:
New vehicle retail sales $53,135 $51,209 3.8
Used vehicle retail sales 33,485 37,932 (11.7)
Used vehicle wholesale sales 1,434 (362) 496.1
----- ----
Total used 34,919 37,570 (7.1)
Parts and service 151,444 145,998 3.7
Finance, insurance and other, net 96,187 85,819 12.1
------ ------
Total $335,685 $320,596 4.7
UNITS SOLD:
Retail new vehicles sold 28,673 27,498 4.3
Retail used vehicles sold 27,310 24,929 9.6
Wholesale used vehicles sold 9,383 9,981 (6.0)
----- -----
Total used 36,693 34,910 5.1
AVERAGE RETAIL SALES PRICE:
New vehicle retail $38,013 $37,030 2.7
Used vehicle retail $20,646 $20,937 (1.4)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales $1,853 $1,862 (0.5)
Used vehicle retail sales 1,226 1,522 (19.4)
Used vehicle wholesale sales 153 (36) 525.0
Total used 952 1,076 (11.5)
Finance, insurance and other, net (per retail unit) $1,718 $1,637 4.9
OTHER:
SG&A expenses $252,941 $236,273 7.1
Adjusted SG&A expenses (1) $252,941 $238,106 6.2
SG&A as % revenues 12.1 12.0
Adjusted SG&A as % revenues (1) 12.1 12.1
SG&A as % gross profit 75.4 73.7
Adjusted SG&A as % gross profit (1) 75.4 74.3
Operating margin % 3.3 3.7
Adjusted operating margin % (1) 3.3 3.6
Pretax margin % 1.9 2.3
Adjusted pretax margin %(1) 1.9 2.2
INTEREST EXPENSE:
Floorplan interest expense $(12,337) $(10,878) 13.4
Floorplan assistance 10,750 10,284 4.5
------ ------
Net floorplan expense $(1,587) $(594) 167.2
Other interest expense, net $(17,016) $(16,272) 4.6
(1) See the section of this
release entitled "Non-GAAP
Financial Measures" and the
tables attached hereto for
information regarding certain
selected items that the Company
believes impact comparability of
financial results between
reporting periods, as well as
for information regarding non-
GAAP financial measures and
their reconciliation to the most
directly comparable measures as
reported in accordance with U.S.
GAAP.
Group 1 Automotive, Inc.
Additional Information - U.K.
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended March 31,
2018 2017 % Increase/ Constant Currency (1)
(Decrease) % Increase/ (Decrease)
----------------------
REVENUES:
New vehicle retail sales $354,404 $258,640 37.0 21.6
Used vehicle retail sales 192,549 115,369 66.9 48.5
Used vehicle wholesale sales 46,185 30,509 51.4 34.7
------ ------
Total used 238,734 145,878 63.7 45.7
Parts and service 53,141 36,781 44.5 28.6
Finance, insurance and other, net 14,263 9,028 58.0 40.3
------ -----
Total $660,542 $450,327 46.7 30.3
GROSS MARGIN %:
New vehicle retail sales 5.2 5.6
Used vehicle retail sales 4.4 4.7
Used vehicle wholesale sales 0.2 0.7
Total used 3.6 3.9
Parts and service 56.5 57.7
Finance, insurance and other, net 100.0 100.0
Total 10.8 11.2
GROSS PROFIT:
New vehicle retail sales $18,511 $14,401 28.5 13.9
Used vehicle retail sales 8,560 5,429 57.7 40.3
Used vehicle wholesale sales 70 211 (66.8) (72.7)
--- ---
Total used 8,630 5,640 53.0 36.1
Parts and service 30,047 21,225 41.6 26.0
Finance, insurance and other, net 14,263 9,028 58.0 40.3
------ -----
Total $71,451 $50,294 42.1 26.2
UNITS SOLD:
Retail new vehicles sold 10,450 9,018 15.9
Retail used vehicles sold 7,835 5,611 39.6
Wholesale used vehicles sold 5,587 4,169 34.0
----- -----
Total used 13,422 9,780 37.2
AVERAGE RETAIL SALES PRICE:
New vehicle retail $33,914 $28,680 18.2 4.9
Used vehicle retail $24,575 $20,561 19.5 6.4
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales $1,771 $1,597 10.9 (1.7)
Used vehicle retail sales 1,093 968 12.9 0.5
Used vehicle wholesale sales 13 51 (74.5) (79.6)
Total used 643 577 11.4 (0.8)
Finance, insurance and other, net (per retail unit) $780 $617 26.4 12.3
OTHER:
SG&A expenses $59,596 $41,624 43.2 27.4
SG&A as % revenues 9.0 9.2
SG&A as % gross profit 83.4 82.8
Operating margin % 1.3 1.6
Pretax margin % 0.9 1.2
INTEREST EXPENSE:
Floorplan interest expense $(1,514) $(1,034) 46.4 30.4
Floorplan assistance 285 229 24.5 10.6
--- ---
Net floorplan expense $(1,229) $(805) 52.7 36.0
Other interest expense, net $(1,532) $(581) 163.7 135.6
(1) See the section of this
release entitled "Non-GAAP
Financial Measures" and the
tables attached hereto for
information regarding certain
selected items that the Company
believes impact comparability of
financial results between
reporting periods, as well as
for information regarding non-
GAAP financial measures and
their reconciliation to the most
directly comparable measures as
reported in accordance with U.S.
GAAP.
Group 1 Automotive, Inc.
Additional Information - Brazil
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended March 31,
2018 2017 % Increase/ Constant Currency (1)
(Decrease) % Increase/ (Decrease)
----------------------
REVENUES:
New vehicle retail sales $69,233 $60,324 14.8 18.8
Used vehicle retail sales 24,191 23,611 2.5 5.9
Used vehicle wholesale sales 3,842 3,103 23.8 28.4
----- -----
Total used 28,033 26,714 4.9 8.5
Parts and service 11,860 11,758 0.9 4.1
Finance, insurance and other, net 1,872 1,987 (5.8) (2.4)
----- -----
Total $110,998 $100,783 10.1 13.9
GROSS MARGIN %:
New vehicle retail sales 5.5 6.0
Used vehicle retail sales 6.0 7.0
Used vehicle wholesale sales 3.9 8.1
Total used 5.7 7.1
Parts and service 45.3 43.7
Finance, insurance and other, net 100.0 100.0
Total 11.4 12.5
GROSS PROFIT:
New vehicle retail sales $3,781 $3,617 4.5 8.2
Used vehicle retail sales 1,450 1,644 (11.8) (8.9)
Used vehicle wholesale sales 151 251 (39.8) (37.4)
--- ---
Total used 1,601 1,895 (15.5) (12.7)
Parts and service 5,373 5,133 4.7 8.1
Finance, insurance and other, net 1,872 1,987 (5.8) (2.4)
----- -----
Total $12,627 $12,632 - 3.4
UNITS SOLD:
Retail new vehicles sold 2,067 1,774 16.5
Retail used vehicles sold 1,071 1,026 4.4
Wholesale used vehicles sold 357 379 (5.8)
--- ---
Total used 1,428 1,405 1.6
AVERAGE RETAIL SALES PRICE:
New vehicle retail $33,494 $34,005 (1.5) 2.0
Used vehicle retail $22,587 $23,013 (1.8) 1.5
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales $1,829 $2,039 (10.3) (7.1)
Used vehicle retail sales 1,354 1,602 (15.5) (12.7)
Used vehicle wholesale sales 423 662 (36.1) (33.5)
Total used 1,121 1,349 (16.9) (14.1)
Finance, insurance and other, net (per retail unit) $597 $710 (15.9) (12.9)
OTHER:
SG&A expenses $11,810 $11,882 (0.6) 2.6
SG&A as % revenues 10.6 11.8
SG&A as % gross profit 93.5 94.1
Operating margin % 0.4 0.4
Pretax margin % (0.1) 0.2
INTEREST EXPENSE:
Floorplan interest expense $(236) $(30) 686.7 722.5
Floorplan assistance - - - -
--- ---
Net floorplan expense $(236) $(30) 686.7 722.5
Other interest expense, net $(272) $(146) 86.3 91.0
(1) See the section of this
release entitled "Non-GAAP
Financial Measures" and the
tables attached hereto for
information regarding certain
selected items that the Company
believes impact comparability of
financial results between
reporting periods, as well as
for information regarding non-
GAAP financial measures and
their reconciliation to the most
directly comparable measures as
reported in accordance with U.S.
GAAP.
Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended March 31,
2018 2017 % Increase/ Constant Currency %(1)
(Decrease) Increase/ (Decrease)
--------------------
REVENUES:
New vehicle retail sales $1,513,590 $1,337,213 13.2 10.4
Used vehicle retail sales 780,570 660,927 18.1 15.0
Used vehicle wholesale sales 104,029 104,157 (0.1) (4.9)
------- -------
Total used 884,599 765,084 15.6 12.3
Parts and service 349,515 319,698 9.3 7.6
Finance, insurance and other, net 112,322 96,834 16.0 14.4
------- ------
Total $2,860,026 $2,518,829 13.5 10.8
GROSS MARGIN %:
New vehicle retail sales 5.0 5.2
Used vehicle retail sales 5.6 6.8
Used vehicle wholesale sales 1.6 0.1
Total used 5.1 5.9
Parts and service 53.5 53.9
Finance, insurance and other, net 100.0 100.0
Total 14.7 15.2
GROSS PROFIT:
New vehicle retail sales $75,427 $69,227 9.0 6.1
Used vehicle retail sales 43,495 45,005 (3.4) (5.3)
Used vehicle wholesale sales 1,655 100 1,555.0 1,549.1
----- ---
Total used 45,150 45,105 0.1 (1.9)
Parts and service 186,864 172,356 8.4 6.6
Finance, insurance and other, net 112,322 96,834 16.0 14.4
------- ------
Total $419,763 $383,522 9.4 7.5
UNITS SOLD:
Retail new vehicles sold 41,190 38,290 7.6
Retail used vehicles sold 36,216 31,566 14.7
Wholesale used vehicles sold 15,327 14,529 5.5
------ ------
Total used 51,543 46,095 11.8
AVERAGE RETAIL SALES PRICE:
New vehicle retail $36,747 $34,923 5.2 2.6
Used vehicle retail $21,553 $20,938 2.9 0.3
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales $1,831 $1,808 1.3 (1.4)
Used vehicle retail sales 1,201 1,426 (15.8) (17.5)
Used vehicle wholesale sales 108 7 1,442.9 1,463.3
Total used 876 979 (10.5) (12.3)
Finance, insurance and other, net (per retail unit) $1,451 $1,386 4.7 3.3
OTHER:
SG&A expenses $324,347 $289,779 11.9 9.8
Adjusted SG&A expenses (1) $324,347 $291,612 11.2 9.1
SG&A as % revenues 11.3 11.5
Adjusted SG&A as % revenues (1) 11.3 11.6
SG&A as % gross profit 77.3 75.6
Adjusted SG&A as % gross profit (1) 77.3 76.0
Operating margin % 2.8 3.2
Adjusted operating margin % (1) 2.8 3.1
Pretax margin % 1.6 2.0
Adjusted pretax margin % (1) 1.6 2.0
INTEREST EXPENSE:
Floorplan interest expense $(14,087) $(11,942) 18.0 16.7
Floorplan assistance 11,035 10,513 5.0 4.7
------ ------
Net floorplan expense $(3,052) $(1,429) 113.6 104.9
Other interest expense, net $(18,820) $(16,999) 10.7 9.8
(1) See the section of this
release entitled "Non-GAAP
Financial Measures" and the
tables attached hereto for
information regarding certain
selected items that the Company
believes impact comparability of
financial results between
reporting periods, as well as
for information regarding non-
GAAP financial measures and
their reconciliation to the most
directly comparable measures as
reported in accordance with U.S.
GAAP.
Group 1 Automotive, Inc.
Additional Information - Same Store U.S. (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended March 31,
----------------------------
2018 2017 % Increase/
(Decrease)
----------
REVENUES:
New vehicle retail sales $1,068,221 $1,018,249 4.9
Used vehicle retail sales 553,733 521,945 6.1
Used vehicle wholesale sales 52,779 70,544 (25.2)
------ ------
Total used 606,512 592,489 2.4
Parts and service 280,403 271,159 3.4
Finance, insurance and other, net 94,151 85,391 10.3
------ ------
Total $2,049,287 $1,967,288 4.2
GROSS MARGIN %:
New vehicle retail sales 4.9 5.0
Used vehicle retail sales 6.0 7.3
Used vehicle wholesale sales 2.7 (0.5)
Total used 5.7 6.3
Parts and service 53.1 53.8
Finance, insurance and other, net 100.0 100.0
Total 16.1 16.3
GROSS PROFIT:
New vehicle retail sales $52,071 $51,207 1.7
Used vehicle retail sales 33,028 37,931 (12.9)
Used vehicle wholesale sales 1,425 (345) 513.0
----- ----
Total used 34,453 37,586 (8.3)
Parts and service 148,910 145,998 2.0
Finance, insurance and other, net 94,151 85,391 10.3
------ ------
Total $329,585 $320,182 2.9
UNITS SOLD:
Retail new vehicles sold 28,150 27,498 2.4
Retail used vehicles sold 26,858 24,929 7.7
Wholesale used vehicles sold 9,223 9,981 (7.6)
----- -----
Total used 36,081 34,910 3.4
AVERAGE RETAIL SALES PRICE:
New vehicle retail $37,947 $37,030 2.5
Used vehicle retail $20,617 $20,937 (1.5)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales $1,850 $1,862 (0.6)
Used vehicle retail sales 1,230 1,522 (19.2)
Used vehicle wholesale sales 155 (35) 542.9
Total used 955 1,077 (11.3)
Finance, insurance and other, net (per retail unit) $1,712 $1,629 5.1
OTHER:
SG&A expenses $247,611 $236,051 4.9
Adjusted SG&A expenses(2) $247,611 $237,884 4.1
SG&A as % revenues 12.1 12.0
Adjusted SG&A as % revenues (2) 12.1 12.1
SG&A as % gross profit 75.1 73.7
Adjusted SG&A as % gross profit (2) 75.1 74.3
Operating margin % 3.4 3.7
Adjusted operating margin % (2) 3.4 3.6
(1) Same store amounts include
the results for the identical
months in each period presented
in the comparison, commencing
with the first full month we
owned the dealership and, in the
case of dispositions, ending
with the last full month we
owned it. Same store results
also include the activities of
our corporate office.
(2) See the section of this
release entitled "Non-GAAP
Financial Measures" and the
tables attached hereto for
information regarding certain
selected items that the Company
believes impact comparability of
financial results between
reporting periods, as well as
for information regarding non-
GAAP financial measures and
their reconciliation to the most
directly comparable measures as
reported in accordance with U.S.
GAAP.
Group 1 Automotive, Inc.
Additional Information - Same Store U.K. (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended March 31,
2018 2017 % Increase/ Constant Currency (2)
(Decrease) % Increase/ (Decrease)
--------- ----------------------
REVENUES:
New vehicle retail sales $270,060 $256,703 5.2 (6.6)
Used vehicle retail sales 146,240 114,806 27.4 13.4
Used vehicle wholesale sales 36,073 30,415 18.6 5.6
------ ------
Total used 182,313 145,221 25.5 11.7
Parts and service 41,225 36,446 13.1 0.7
Finance, insurance and other, net 10,635 8,973 18.5 5.3
------ -----
Total $504,233 $447,343 12.7 0.2
GROSS MARGIN %:
New vehicle retail sales 5.4 5.6
Used vehicle retail sales 4.6 4.7
Used vehicle wholesale sales (0.1) 0.7
Total used 3.6 3.9
Parts and service 57.0 57.8
Finance, insurance and other, net 100.0 100.0
Total 11.0 11.2
GROSS PROFIT:
New vehicle retail sales $14,584 $14,296 2.0 (9.6)
Used vehicle retail sales 6,671 5,383 23.9 10.3
Used vehicle wholesale sales (50) 212 (123.6) (123.5)
--- ---
Total used 6,621 5,595 18.3 5.2
Parts and service 23,505 21,073 11.5 (0.7)
Finance, insurance and other, net 10,635 8,973 18.5 5.3
------ -----
Total $55,345 $49,937 10.8 (1.5)
UNITS SOLD:
Retail new vehicles sold 8,012 8,904 (10.0)
Retail used vehicles sold 5,864 5,578 5.1
Wholesale used vehicles sold 4,333 4,142 4.6
----- -----
Total used 10,197 9,720 4.9
AVERAGE RETAIL SALES PRICE:
New vehicle retail $33,707 $28,830 16.9 3.8
Used vehicle retail $24,939 $20,582 21.2 7.9
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales $1,820 $1,606 13.3 0.5
Used vehicle retail sales 1,138 965 17.9 4.9
Used vehicle wholesale sales (12) 51 (123.5) (122.4)
Total used 649 576 12.7 0.3
Finance, insurance and other, net (per retail unit) $766 $620 23.5 9.9
OTHER:
SG&A expenses $46,816 $40,929 14.4 1.8
SG&A as % revenues 9.3 9.1
SG&A as % gross profit 84.6 82.0
Operating margin % 1.2 1.6
(1) Same store amounts include
the results for the identical
months in each period presented
in the comparison, commencing
with the first full month we
owned the dealership and, in the
case of dispositions, ending
with the last full month we
owned it. Same store results
also include the activities of
our corporate office.
(2) See the section of this
release entitled "Non-GAAP
Financial Measures" and the
tables attached hereto for
information regarding certain
selected items that the Company
believes impact comparability of
financial results between
reporting periods, as well as
for information regarding non-
GAAP financial measures and
their reconciliation to the most
directly comparable measures as
reported in accordance with U.S.
GAAP.
Group 1 Automotive, Inc.
Additional Information - Same Store Brazil (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended March 31,
----------------------------
2018 2017 % Increase/ Constant Currency (2)
(Decrease) % Increase/ (Decrease)
--------- ----------------------
REVENUES:
New vehicle retail sales $69,233 $58,086 19.2 23.5
Used vehicle retail sales 24,191 21,801 11.0 14.9
Used vehicle wholesale sales 3,842 3,087 24.5 29.0
----- -----
Total used 28,033 24,888 12.6 16.6
Parts and service 11,860 11,098 6.9 10.4
Finance, insurance and other, net 1,872 1,790 4.6 8.5
----- -----
Total $110,998 $95,862 15.8 19.9
GROSS MARGIN %:
New vehicle retail sales 5.5 6.1
Used vehicle retail sales 6.0 7.3
Used vehicle wholesale sales 3.9 8.2
Total used 5.7 7.4
Parts and service 45.3 45.4
Finance, insurance and other, net 100.0 100.0
Total 11.4 12.7
GROSS PROFIT:
New vehicle retail sales $3,781 $3,520 7.4 11.3
Used vehicle retail sales 1,452 1,591 (8.7) (5.7)
Used vehicle wholesale sales 151 252 (40.1) (37.4)
--- ---
Total used 1,603 1,843 (13.0) (10.0)
Parts and service 5,373 5,042 6.6 10.1
Finance, insurance and other, net 1,872 1,790 4.6 8.5
----- -----
Total $12,629 $12,195 3.6 7.1
UNITS SOLD:
Retail new vehicles sold 2,067 1,676 23.3
Retail used vehicles sold 1,071 981 9.2
Wholesale used vehicles sold 357 269 32.7
--- ---
Total used 1,428 1,250 14.2
AVERAGE RETAIL SALES PRICE:
New vehicle retail $33,494 $34,658 (3.4) 0.1
Used vehicle retail $22,587 $22,223 1.6 5.2
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales $1,829 $2,100 (12.9) (9.8)
Used vehicle retail sales 1,356 1,622 (16.4) (13.6)
Used vehicle wholesale sales 423 937 (54.9) (52.9)
Total used 1,123 1,474 (23.8) (21.3)
Finance, insurance and other, net (per retail unit) $597 $674 (11.4) (8.1)
OTHER:
SG&A expenses $11,773 $11,315 4.0 7.5
SG&A as % revenues 10.6 11.8
SG&A as % gross profit 93.2 92.8
Operating margin % 0.4 0.5
(1) Same store amounts include
the results for the identical
months in each period presented
in the comparison, commencing
with the first full month we
owned the dealership and, in the
case of dispositions, ending
with the last full month we
owned it. Same store results
also include the activities of
our corporate office.
(2) See the section of this
release entitled "Non-GAAP
Financial Measures" and the
tables attached hereto for
information regarding certain
selected items that the Company
believes impact comparability of
financial results between
reporting periods, as well as
for information regarding non-
GAAP financial measures and
their reconciliation to the most
directly comparable measures as
reported in accordance with U.S.
GAAP.
Group 1 Automotive, Inc.
Additional Information - Same Store Consolidated (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended March 31,
2018 2017 % Increase/ Constant Currency (2)
(Decrease) % Increase/ (Decrease)
--------- ----------------------
REVENUES:
New vehicle retail sales $1,407,514 $1,333,038 5.6 3.5
Used vehicle retail sales 724,164 658,552 10.0 7.7
Used vehicle wholesale sales 92,694 104,046 (10.9) (14.6)
------ -------
Total used 816,858 762,598 7.1 4.6
Parts and service 333,488 318,703 4.6 3.3
Finance, insurance and other, net 106,658 96,154 10.9 9.8
------- ------
Total $2,664,518 $2,510,493 6.1 4.1
GROSS MARGIN %:
New vehicle retail sales 5.0 5.2
Used vehicle retail sales 5.7 6.8
Used vehicle wholesale sales 1.6 0.1
Total used 5.2 5.9
Parts and service 53.3 54.0
Finance, insurance and other, net 100.0 100.0
Total 14.9 15.2
GROSS PROFIT:
New vehicle retail sales $70,436 $69,023 2.0 (0.2)
Used vehicle retail sales 41,151 44,905 (8.4) (9.9)
Used vehicle wholesale sales 1,526 119 1,182.4 1,181.5
----- ---
Total used 42,677 45,024 (5.2) (6.7)
Parts and service 177,788 172,113 3.3 1.9
Finance, insurance and other, net 106,658 96,154 10.9 9.8
------- ------
Total $397,559 $382,314 4.0 2.5
UNITS SOLD:
Retail new vehicles sold 38,229 38,078 0.4
Retail used vehicles sold 33,793 31,488 7.3
Wholesale used vehicles sold 13,913 14,392 (3.3)
------ ------
Total used 47,706 45,880 4.0
AVERAGE RETAIL SALES PRICE:
New vehicle retail $36,818 $35,008 5.2 3.1
Used vehicle retail $21,429 $20,914 2.5 0.3
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales $1,842 $1,813 1.6 (0.6)
Used vehicle retail sales 1,218 1,426 (14.6) (16.0)
Used vehicle wholesale sales 110 8 1,275.0 1,225.6
Total used 895 981 (8.8) (10.3)
Finance, insurance and other, net (per retail unit) $1,481 $1,382 7.2 6.0
OTHER:
SG&A expenses $306,200 $288,295 6.2 4.6
Adjusted SG&A expenses(2) $306,200 $290,128 5.5 3.9
SG&A as % revenues 11.5 11.5
Adjusted SG&A as % revenues (2) 11.5 11.6
SG&A as % gross profit 77.0 75.4
Adjusted SG&A as % gross profit (2) 77.0 75.9
Operating margin % 2.9 3.2
Adjusted operating margin % (2) 2.9 3.1
(1) Same store amounts include
the results for the identical
months in each period presented
in the comparison, commencing
with the first full month we
owned the dealership and, in the
case of dispositions, ending
with the last full month we
owned it. Same store results
also include the activities of
our corporate office.
(2) See the section of this
release entitled "Non-GAAP
Financial Measures" and the
tables attached hereto for
information regarding certain
selected items that the Company
believes impact comparability of
financial results between
reporting periods, as well as
for information regarding non-
GAAP financial measures and
their reconciliation to the most
directly comparable measures as
reported in accordance with U.S.
GAAP.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - U.S.
(Unaudited)
(Dollars in thousands)
Three Months Ended March 31,
----------------------------
2018 2017 % Increase/
(Decrease)
---------
SG&A RECONCILIATION:
As reported $252,941 $236,273 7.1
Pre-tax adjustments:
Legal settlements (2) - 1,833
Adjusted SG&A (1) $252,941 $238,106 6.2
SG&A AS % REVENUES:
Unadjusted 12.1 12.0
Adjusted (1) 12.1 12.1
SG&A AS % GROSS PROFIT:
Unadjusted 75.4 73.7
Adjusted (1) 75.4 74.3
OPERATING MARGIN %
Unadjusted 3.3 3.7
Adjusted (1) 3.3 3.6
PRETAX MARGIN %:
Unadjusted 1.9 2.3
Adjusted (1) 1.9 2.2
SAME STORE SG&A RECONCILIATION:
As reported $247,611 $236,051 4.9
Pre-tax adjustments:
Legal settlements (2) - 1,833
Adjusted Same Store SG&A(1) $247,611 $237,884 4.1
SAME STORE SG&A AS % REVENUES:
Unadjusted 12.1 12.0
Adjusted (1) 12.1 12.1
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 75.1 73.7
Adjusted (1) 75.1 74.3
SAME STORE OPERATING MARGIN %
Unadjusted 3.4 3.7
Adjusted (1) 3.4 3.6
(1) See the
section of
this release
entitled
"Non-GAAP
Financial
Measures"
for
information
regarding
non-GAAP
financial
measures and
certain
selected
items that
the Company
believes
impact
comparability
of financial
results
between
reporting
periods.
(2) For the three
months ended
March 31,
2017, the
Company
recognized a
net pre-tax
gain related
to a
settlement
with an OEM
of $1.8
million.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - CONSOLIDATED
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended March 31,
----------------------------
2018 2017 % Increase/
(Decrease)
---------
NET INCOME RECONCILIATION:
As reported
Pretax Net Income $46,167 $51,196
Income Tax Provision (10,353) (17,257)
--------
Net Income $35,814 $33,939 5.5
Effective Tax Rate 22.4% 33.7%
Adjustments:
Legal settlements (2)
Pre-tax - (1,833)
Tax impact - 696
Adjusted
Pretax Net Income $46,167 $49,363
Income Tax Provision (10,353) (16,561)
Adjusted net income (1) $35,814 $32,802 9.2
Effective Tax Rate 22.4% 33.6%
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED
COMMON SHARES RECONCILIATION:
Adjusted net income (1) $35,814 $32,802 9.2
Less: Adjusted earnings allocated to participating securities 1,208 1,206 0.2
Adjusted net income available to diluted common shares (1) $34,606 $31,596 9.5
DILUTED INCOME PER COMMON SHARE RECONCILIATION:
As reported $1.70 $1.58 7.6
After-tax adjustments:
Legal settlements (2) - (0.05)
Adjusted diluted income per share (1) $1.70 $1.53 11.1
SG&A RECONCILIATION:
As reported $324,347 $289,779 11.9
Pre-tax adjustments:
Legal settlements (2) - 1,833
Adjusted SG&A (1) $324,347 $291,612 11.2
SG&A AS % REVENUES:
Unadjusted 11.3 11.5
Adjusted (1) 11.3 11.6
SG&A AS % GROSS PROFIT:
Unadjusted 77.3 75.6
Adjusted (1) 77.3 76.0
OPERATING MARGIN %
Unadjusted 2.8 3.2
Adjusted (1) 2.8 3.1
PRETAX MARGIN %
Unadjusted 1.6 2.0
Adjusted (1) 1.6 2.0
SAME STORE SG&A RECONCILIATION:
As reported $306,200 $288,295 6.2
Pre-tax adjustments:
Legal settlements (2) - 1,833
Adjusted Same Store SG&A (1) $306,200 $290,128 5.5
SAME STORE SG&A AS % REVENUES:
Unadjusted 11.5 11.5
Adjusted(1) 11.5 11.6
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 77.0 75.4
Adjusted(1) 77.0 75.9
SAME STORE OPERATING MARGIN %
Unadjusted 2.9 3.2
Adjusted (1) 2.9 3.1
(1) See the
section of
this release
entitled
"Non-GAAP
Financial
Measures"
for
information
regarding
non-GAAP
financial
measures and
certain
selected
items that
the Company
believes
impact
comparability
of financial
results
between
reporting
periods.
(2) For the three
months ended
March 31,
2017, the
Company
recognized a
net pre-tax
gain related
to a
settlement
with an OEM
of $1.8
million.
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SOURCE Group 1 Automotive, Inc.
