Jul 26, 2018 SOURCE: PR NewsWire
Group 1 Automotive Announces Second Quarter 2018 Financial Results
HOUSTON, July 26, 2018 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), ("Group 1" or the "Company"), an international, Fortune 500 automotive retailer, today reported 2018 second quarter net income of $56.5 million, diluted earnings per common share of $2.72, adjusted net income (a non-GAAP measure) of $50.8 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $2.45.
Second quarter 2018 adjusted net income and diluted earnings per share exclude approximately $5.7 million net after-tax adjustments, or $0.27 per common share. These adjustments consisted of a net gain on real estate and dealership transactions, which was approximately $15.2 million, or $0.73 per common share, partially offset by the impact of catastrophic events of $4.4 million, or $0.21 per common share; non-cash asset impairments of $3.2 million, or $0.15 per common share; and legal settlements of approximately $2.0 million, or $0.10 per common share.
"We delivered a solid quarter, reflecting a relatively strong U.S. vehicle market in June, favorable overall performance in the U.K., a corporate-wide focus on our used vehicle business, and a major cost reduction initiative in both the U.S. and the U.K. early this year that began to pay dividends this quarter," said Earl J. Hesterberg, Group 1's president and chief executive officer. "These results demonstrate our ability to grow earnings in a flat retail sales environment. In addition, during the quarter, the Company has launched a renewed focus on capital deployment, with an emphasis on actions, such as disposal of underperforming assets, more stringent control of capital expenditures, and enhanced share repurchases, targeted at delivering improved shareholder value. Actions taken this quarter include the disposal of a large underperforming dealership and a stepped-up pace of share repurchases."
Consolidated Results for Second 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 10.2 percent (9.2 percent) to $2.9 billion.
-- Total gross profit grew 8.2 percent (7.5 percent), to $438.2 million.
-- New vehicle revenues increased 7.4 percent (6.6 percent) on 6.3 percent
higher unit sales. New vehicle gross profit improved 2.2 percent (1.8
percent), to $76.6 million.
-- Retail used vehicle revenues increased 19.8 percent (18.4 percent) on
18.8 percent higher unit sales. Retail used vehicle gross profit
increased 14.0 percent (12.7 percent), to $51.2 million. Total used
vehicle gross profit was up 15.3 percent (14.1 percent), to $51.5
million. In the U.S., the Val-u-Line initiative the Company launched
last quarter has continued to build momentum, with Same Store used
retail unit sales increasing 11 percent, and Val-u-Line units growing to
10 percent of the mix.
-- Parts and service gross profit increased 9.1 percent (8.3 percent) on
revenue growth of 8.0 percent (7.4 percent). Same Store parts and
service gross profit increased 3.2 percent (2.7 percent) on Same Store
parts and service revenue growth of 2.4 percent (2.0 percent).
-- Finance and Insurance (F&I) gross profit per retail unit (PRU) decreased
3.4 percent (decreased 3.9 percent), to $1,412 and total F&I gross
profit increased $8.6 million, or 8.1 percent (7.5 percent).
-- Selling, General and Administrative (SG&A) expenses as a percent of
gross profit improved 340 basis points, to 70.3 percent. Adjusted Same
Store SG&A as a percent of gross profit improved 110 basis points, to
72.3 percent, reflecting strong improvements in all three of our
markets.
-- Provision for income taxes declined 17.0 percent, to $18.7 million, or
to approximately 24.9 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 Second Quarter 2018 (year-over-year comparable basis)
-- United States:The Company's U.S. operations accounted for 73.7 percent
of total revenues and 80.0 percent of total gross profit. Total U.S.
revenues were $2.2 billion, an increase of 2.1 percent, driven by
increases in used retail (up 10.4 percent), F&I revenue (up 3.1
percent), and parts and service (up 2.2 percent). F&I gross profit PRU
decreased $33, or 2.0 percent per unit, to $1,655; and total gross
profit grew 3.0 percent, to $350.7 million. "We were pleased with our
used car performance and cost control in the U.S. in the second quarter.
Same Store used vehicle retail unit sales were up 11 percent and total
used vehicle gross profit increased six percent. Total Same Store gross
profit increased one percent, which when coupled with strong cost
control, evidenced by adjusted SG&A leverage of 110 basis points, drove
improved bottom-line results. Same Store adjusted operating income
increased five percent and adjusted operating margin improved 20 basis
points to 4.2 percent," said Daryl Kenningham, Group 1's president of
U.S. operations.New vehicle retail gross profit PRU was roughly flat
with a slight increase of $4, to $1,855. Total used vehicle gross profit
PRU increased $69, to $1,128, reflecting the impact of the used vehicle
initiatives we launched last quarter, which drove a shift of over 2,000
units from low-margin wholesale to higher margin retail sales.SG&A
expenses as a percent of gross profit improved 480 basis points, to 66.8
percent; and operating margin increased 60 basis points, to 4.6 percent.
Adjusted SG&A expenses as a percent of gross profit improved 110 basis
points, to 70.3 percent.
-- United KingdomThe Company's U.K. operations accounted for 22.7 percent
of total revenues and 17.1 percent of total gross profit. Total U.K.
revenues increased 52.6 percent (43.6 percent), to $666.9 million,
driven by double-digit revenue growth across each business segment. Same
Store U.K. revenues grew 13.6 percent (6.9 percent), to $493.1 million,
and new vehicle units sold increased 7.2 percent, despite the industry
growing only 2.4 percent. Total gross profit increased 46.9 percent
(38.3 percent), to $74.8 million, with Same Store gross profit
increasing 12.6 percent (6.1 percent), to $57.1 million. This growth was
driven by strong improvements of 16.8 percent (10 percent) in Same Store
parts and service gross profit, as well as double-digit growth in F&I
and used retail gross. SG&A expenses as a percent of gross profit
improved 20 basis points, to 83.2 percent; and operating margin
decreased 10 basis points, to 1.4 percent. Adjusted Same Store SG&A
expenses as a percent of gross profit improved 140 basis points, to 81.1
percent; and Same Store operating margin increased 10 basis points, to
1.7 percent.
-- Brazil:The Company's Brazilian operations were approximately breakeven
during the second quarter and accounted for 3.6 percent of total
revenues and 2.9 percent of total gross profit as a trucking strike in
May negatively impacted results. The Company's Same Store new vehicle
revenue grew 1.7 percent on a constant currency basis, with units down
5.4 percent. On a Same Store constant currency basis, total revenues
grew 5.0 percent, driven by revenue growth of the aforementioned 1.7
percent in new vehicles, 16.5 percent in total used vehicles, 2.7
percent in parts & service, and 5.1 percent in F&I.SG&A expenses as a
percent of gross profit increased 10 basis points, to 91.1 percent.
Adjusted Same Store SG&A expenses as a percent of gross profit decreased
280 basis points, to 86.6 percent.
Share Repurchase Authorization
During the second quarter of 2018, the Company repurchased 610,752 shares at an average price per common share of $68.90, for a total of $42.1 million. In July 2018, the Company repurchased an additional 367,773 shares at an average price per common share of $67.98, for a total of $25.0 million. Year-to-date through July 25, 2018, the Company has repurchased 1,114,130 shares at an average price per common share of $68.46, for a total of $76.3 million. These repurchases represent approximately 5.5 percent of the Company's share float at the beginning of the year. As of July 25, 2018, the Company has $73.4 million remaining on its Board authorized common stock share repurchase program.
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, the Company acquired Toyota Alpha Trevo Automóveis Ltda in western São Paulo, Brazil in April 2018, which will operate as T-Drive Toyota Alphaville, and is expected to generate approximately $45 million in annualized revenues. This acquisition provides the opportunity to both increase scale in a growing market and further expand the Company's Toyota presence with additional open points to be announced at a future date. Additionally, the Company is pleased to announce the relocation of Honda São Bernardo do Campo to a new facility. The facility is owned by the Company and will enable significant uplift in new, used and aftersales business.
In June 2018, the Company disposed of 3 franchises, which included a BMW franchise in Kentish Town in the U.K., as well as a Mercedes-Benz franchise and Sprinter franchise in Escondido, California. These three stores generated approximately $115 million in trailing-twelve-month 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; and the Company has disposed of three aforementioned franchises.
Second 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 second quarter financial results and the Company's outlook and strategy.
The conference call will be simulcast live on the Internet at www.group1auto.com, 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: 4003183
A telephonic replay will be available following the call through August 2, 2018 by dialing:
Domestic: 1-877-344-7529
International: 1-412-317-0088
Replay ID: 10122294
ABOUT GROUP 1 AUTOMOTIVE, INC.
Group 1 owns and operates 180 automotive dealerships, 236 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 June 30,
---------------------------
2018 2017 % Increase/
(Decrease)
----------
REVENUES:
New vehicle retail sales $1,555,570 $1,448,768 7.4
Used vehicle retail sales 821,853 685,949 19.8
Used vehicle wholesale sales 92,854 99,377 (6.6)
Parts and service 358,129 331,631 8.0
Finance, insurance and other,
net 115,056 106,470 8.1
------- -------
Total revenues 2,943,462 2,672,195 10.2
COST OF SALES:
New vehicle retail sales 1,478,988 1,373,857 7.7
Used vehicle retail sales 770,639 641,036 20.2
Used vehicle wholesale sales 92,613 99,644 (7.1)
Parts and service 163,059 152,766 6.7
------- -------
Total cost of sales 2,505,299 2,267,303 10.5
GROSS PROFIT 438,163 404,892 8.2
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 308,092 298,568 3.2
DEPRECIATION AND AMORTIZATION
EXPENSE 16,638 14,093 18.1
ASSET IMPAIRMENTS 4,268 - 100.0
OPERATING INCOME 109,165 92,231 18.4
OTHER EXPENSE:
Floorplan interest expense (14,563) (13,226) 10.1
Other interest expense, net (19,414) (17,315) 12.1
------- -------
INCOME BEFORE INCOME TAXES 75,188 61,690 21.9
PROVISION FOR INCOME TAXES (18,725) (22,557) (17.0)
NET INCOME $56,463 $39,133 44.3
======= =======
Less: Earnings allocated to
participating securities $1,916 $1,389 37.9
Earnings available to diluted
common shares $54,547 $37,744 44.5
======= =======
DILUTED EARNINGS PER SHARE $2.72 $1.84 47.8
Weighted average dilutive
common shares outstanding 20,046 20,522 (2.3)
Weighted average participating
securities 708 761 (7.0)
--- ---
Total weighted average shares
outstanding 20,754 21,283 (2.5)
Six Months Ended June 30,
-------------------------
2018 2017 % Increase/
(Decrease)
----------
REVENUES:
New vehicle retail sales $3,069,160 $2,785,981 10.2
Used vehicle retail sales 1,602,423 1,346,876 19.0
Used vehicle wholesale sales 196,883 203,534 (3.3)
Parts and service 707,644 651,329 8.6
Finance, insurance and other,
net 227,378 203,304 11.8
Total revenues 5,803,488 5,191,024 11.8
COST OF SALES:
New vehicle retail sales 2,917,151 2,641,843 10.4
Used vehicle retail sales 1,507,714 1,256,958 19.9
Used vehicle wholesale sales 194,987 203,701 (4.3)
Parts and service 325,710 300,108 8.5
Total cost of sales 4,945,562 4,402,610 12.3
GROSS PROFIT 857,926 788,414 8.8
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 632,439 588,347 7.5
DEPRECIATION AND AMORTIZATION
EXPENSE 32,980 27,699 19.1
ASSET IMPAIRMENTS 4,268 - 100.0
OPERATING INCOME 188,239 172,368 9.2
OTHER EXPENSE:
Floorplan interest expense (28,650) (25,168) 13.8
Other interest expense, net (38,234) (34,314) 11.4
INCOME BEFORE INCOME TAXES 121,355 112,886 7.5
PROVISION FOR INCOME TAXES (29,078) (39,814) (27.0)
NET INCOME $92,277 $73,072 26.3
======= =======
Less: Earnings allocated to
participating securities $3,123 $2,645 18.1
Earnings available to diluted
common shares $89,154 $70,427 26.6
======= =======
DILUTED EARNINGS PER SHARE $4.42 $3.42 29.2
Weighted average dilutive
common shares outstanding 20,176 20,609 (2.1)
Weighted average participating
securities 712 789 (9.8)
--- ---
Total weighted average shares
outstanding 20,888 21,398 (2.4)
Group 1 Automotive, Inc.
Consolidated Balance Sheets
(Unaudited)
(Dollars in thousands)
June 30, 2018 December 31, % Increase/
2017 (Decrease)
----------
ASSETS:
CURRENT ASSETS:
Cash and cash equivalents $41,575 $28,787 44.4
Contracts in transit and
vehicle receivables, net 249,706 306,433 (18.5)
Accounts and notes receivable,
net 178,339 188,611 (5.4)
Inventories, net 1,721,249 1,763,293 (2.4)
Prepaid expenses and other
current assets 80,957 42,062 92.5
------ ------
Total current assets 2,271,826 2,329,186 (2.5)
PROPERTY AND EQUIPMENT, net 1,348,521 1,318,959 2.2
GOODWILL AND INTANGIBLE
FRANCHISE RIGHTS 1,233,201 1,198,666 2.9
OTHER ASSETS 33,194 24,254 36.9
Total assets $4,886,742 $4,871,065 0.3
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES:
Floorplan notes payable -
credit facility and other $1,147,892 $1,240,695 (7.5)
Offset account related to
floorplan notes payable -
credit facility (119,562) (86,547) 38.1
Floorplan notes payable -
manufacturer affiliates 404,233 397,183 1.8
Offset account related to
floorplan notes payable -
manufacturer affiliates (24,500) (22,500) 8.9
Current maturities of long-
term debt and short-term
financing 76,412 77,609 (1.5)
Current liabilities from
interest rate risk management
activities 682 1,996 (65.8)
Accounts payable 442,577 412,981 7.2
Accrued expenses 189,027 177,070 6.8
------- -------
Total current liabilities 2,116,761 2,198,487 (3.7)
5.00% SENIOR NOTES (principal
of $550,000 at June 30, 2018
and December 31, 2017,
respectively) 542,888 542,063 0.2
5.25% SENIOR NOTES (principal
of $300,000 at June 30, 2018
and December 31, 2017,
respectively) 296,440 296,151 0.1
ACQUISITION LINE 39,636 26,988 46.9
REAL ESTATE RELATED AND OTHER
LONG-TERM DEBT, net of
current maturities 419,424 405,950 3.3
CAPITAL LEASE OBLIGATIONS
RELATED TO REAL ESTATE, net of
current maturities 59,610 47,032 26.7
DEFERRED INCOME TAXES 138,478 124,404 11.3
LIABILITIES FROM INTEREST RATE
RISK MANAGEMENT ACTIVITIES 1,597 8,583 (81.4)
OTHER LIABILITIES 99,296 97,125 2.2
STOCKHOLDERS' EQUITY:
Common stock 255 255 -
Additional paid-in capital 288,492 291,461 (1.0)
Retained earnings 1,339,185 1,246,323 7.5
Accumulated other comprehensive
loss (126,358) (123,226) 2.5
Treasury stock (328,962) (290,531) 13.2
-------- --------
Total stockholders' equity 1,172,612 1,124,282 4.3
Total liabilities and
stockholders' equity $4,886,742 $4,871,065 0.3
========== ==========
Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2018 (%) 2017 (%) 2018 (%) 2017 (%)
------- ------- ------- -------
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
Region Geographic Market
------ -----------------
United States Texas 35.2 36.6 35.4 35.6
California 6.4 7.9 6.5 7.9
Oklahoma 5.9 6.5 5.9 6.5
Massachusetts 4.7 4.9 4.7 4.7
Georgia 4.4 4.8 4.3 4.7
Florida 2.5 2.5 2.5 2.5
Louisiana 1.9 1.9 1.8 2.0
New Hampshire 1.8 2.3 1.8 2.0
New Jersey 1.7 1.9 1.6 1.7
South Carolina 1.6 1.5 1.6 1.4
Kansas 1.3 1.8 1.3 1.7
Mississippi 1.2 1.3 1.2 1.4
Alabama 0.6 1.1 0.6 1.1
Maryland 0.5 0.4 0.5 0.4
New Mexico 0.2 - 0.1 -
---
69.9 75.4 69.8 73.6
International United Kingdom 25.1 19.3 25.2 21.4
Brazil 5.0 5.3 5.0 5.0
---
100.0 100.0 100.0 100.0
===== ===== ===== =====
NEW VEHICLE UNIT SALES BRAND MIX:
---------------------------------
Toyota/Lexus 23.9 25.4 24.0 24.4
Volkswagen/Audi/Porsche 13.6 12.3 13.6 12.4
BMW/MINI 12.2 13.1 12.4 13.7
Ford/Lincoln 11.0 11.3 11.2 12.1
Honda/Acura 8.9 9.6 9.2 9.3
Nissan 6.0 7.6 6.4 7.9
Chevrolet/GMC/Buick/Cadillac 5.7 5.9 5.8 6.3
Mercedes-Benz/smart/Sprinter 5.4 4.2 5.0 4.1
Chrysler/Dodge/Jeep/RAM 4.1 4.1 4.1 3.9
Hyundai/Kia 3.8 4.3 3.9 3.9
Jaguar/Land Rover 1.9 0.4 1.9 0.4
Other 3.5 1.8 2.5 1.6
100.0 100.0 100.0 100.0
===== ===== ===== =====
Group 1 Automotive, Inc.
Additional Information - U.S.
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended June 30,
---------------------------
2018 2017 % Increase/
(Decrease)
----------
REVENUES:
New
vehicle
retail
sales $1,146,882 $1,143,771 0.3
Used
vehicle
retail
sales 592,007 536,193 10.4
Used
vehicle
wholesale
sales 42,781 66,476 (35.6)
------ ------
Total
used 634,788 602,669 5.3
Parts
and
service 288,889 282,698 2.2
Finance,
insurance
and
other,
net 97,442 94,552 3.1
------ ------
Total $2,168,001 $2,123,690 2.1
GROSS MARGIN %:
New
vehicle
retail
sales 4.9 5.0
Used
vehicle
retail
sales 6.6 6.8
Used
vehicle
wholesale
sales 3.6 0.4
Total
used 6.4 6.1
Parts
and
service 54.2 53.8
Finance,
insurance
and
other,
net 100.0 100.0
Total 16.2 16.0
GROSS PROFIT:
New
vehicle
retail
sales $56,358 $57,000 (1.1)
Used
vehicle
retail
sales 38,809 36,704 5.7
Used
vehicle
wholesale
sales 1,553 246 531.3
----- ---
Total
used 40,362 36,950 9.2
Parts
and
service 156,508 151,971 3.0
Finance,
insurance
and
other,
net 97,442 94,552 3.1
------ ------
Total $350,670 $340,473 3.0
UNITS SOLD:
Retail
new
vehicles
sold 30,388 30,802 (1.3)
Retail
used
vehicles
sold 28,484 25,202 13.0
Wholesale
used
vehicles
sold 7,292 9,701 (24.8)
----- -----
Total
used 35,776 34,903 2.5
AVERAGE RETAIL SALES PRICE:
New
vehicle
retail $37,741 $37,133 1.6
Used
vehicle
retail $20,784 $21,276 (2.3)
GROSS PROFIT PER UNIT SOLD:
New
vehicle
retail
sales $1,855 $1,851 0.2
Used
vehicle
retail
sales 1,362 1,456 (6.5)
Used
vehicle
wholesale
sales 213 25 752.0
Total
used 1,128 1,059 6.5
Finance,
insurance
and
other,
net
(per
retail
unit) $1,655 $1,688 (2.0)
OTHER:
SG&A
expenses $234,279 $243,844 (3.9)
Adjusted
SG&A
expenses(1) $246,586 $243,201 1.4
SG&A
as
%
revenues 10.8 11.5
Adjusted
SG&A
as
%
revenues(1) 11.4 11.5
SG&A
as
%
gross
profit 66.8 71.6
Adjusted
SG&A
as
%
gross
profit(1) 70.3 71.4
Operating
margin
% 4.6 4.0
Adjusted
operating
margin
%(1) 4.2 4.0
Pretax
margin
% 3.2 2.6
Adjusted
pretax
margin
%
(1) 2.8 2.7
INTEREST EXPENSE:
Floorplan
interest
expense $(12,809) $(12,062) 6.2
Floorplan
assistance 11,206 11,452 (2.1)
------ ------
Net
floorplan
expense $(1,603) $(610) 162.8
Other
interest
expense,
net $(17,332) $(16,572) 4.6
Six Months Ended June 30,
-------------------------
2018 2017 % Increase/
(Decrease)
----------
REVENUES:
New
vehicle
retail
sales $2,236,835 $2,162,020 3.5
Used
vehicle
retail
sales 1,155,837 1,058,140 9.2
Used
vehicle
wholesale
sales 96,783 137,021 (29.4)
------ -------
Total
used 1,252,620 1,195,161 4.8
Parts
and
service 573,403 553,857 3.5
Finance,
insurance
and
other,
net 193,629 180,371 7.4
------- -------
Total $4,256,487 $4,091,409 4.0
GROSS MARGIN %:
New
vehicle
retail
sales 4.9 5.0
Used
vehicle
retail
sales 6.3 7.1
Used
vehicle
wholesale
sales 3.1 (0.1)
Total
used 6.0 6.2
Parts
and
service 53.7 53.8
Finance,
insurance
and
other,
net 100.0 100.0
Total 16.1 16.2
GROSS PROFIT:
New
vehicle
retail
sales $109,493 $108,209 1.2
Used
vehicle
retail
sales 72,294 74,636 (3.1)
Used
vehicle
wholesale
sales 2,987 (116) 2675.0
----- ----
Total
used 75,281 74,520 1.0
Parts
and
service 307,952 297,969 3.4
Finance,
insurance
and
other,
net 193,629 180,371 7.4
------- -------
Total $686,355 $661,069 3.8
UNITS SOLD:
Retail
new
vehicles
sold 59,061 58,300 1.3
Retail
used
vehicles
sold 55,794 50,131 11.3
Wholesale
used
vehicles
sold 16,675 19,682 (15.3)
------ ------
Total
used 72,469 69,813 3.8
AVERAGE RETAIL SALES PRICE:
New
vehicle
retail $37,873 $37,084 2.1
Used
vehicle
retail $20,716 $21,107 (1.9)
GROSS PROFIT PER UNIT SOLD:
New
vehicle
retail
sales $1,854 $1,856 (0.1)
Used
vehicle
retail
sales 1,296 1,489 (13.0)
Used
vehicle
wholesale
sales 179 (6) 3083.3
Total
used 1,039 1,067 (2.6)
Finance,
insurance
and
other,
net
(per
retail
unit) $1,686 $1,663 1.4
OTHER:
SG&A
expenses $487,220 $480,117 1.5
Adjusted
SG&A
expenses(1) $499,527 $481,307 3.8
SG&A
as
%
revenues 11.4 11.7
Adjusted
SG&A
as
%
revenues
(1) 11.7 11.8
SG&A
as
%
gross
profit 71.0 72.6
Adjusted
SG&A
as
%
gross
profit
(1) 72.8 72.8
Operating
margin
% 4.0 3.8
Adjusted
operating
margin
%(1) 3.8 3.8
Pretax
margin
% 2.6 2.5
Adjusted
pretax
margin
%(1) 2.4 2.5
INTEREST EXPENSE:
Floorplan
interest
expense $(25,146) $(22,940) 9.6
Floorplan
assistance 21,956 21,736 1.0
------ ------
Net
floorplan
expense $(3,190) $(1,204) 165.0
Other
interest
expense,
net $(34,348) $(32,844) 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 June 30,
2018 2017 % Increase/ Constant Currency (1)
(Decrease) % Increase/ (Decrease)
----------------------
REVENUES:
New vehicle retail
sales $338,635 $231,415 46.3 37.7
Used vehicle
retail sales 208,108 128,406 62.1 52.4
Used vehicle
wholesale sales 46,527 30,448 52.8 43.7
------ ------
Total used 254,635 158,854 60.3 50.7
Parts and service 57,996 37,050 56.5 47.3
Finance, insurance
and other, net 15,617 9,784 59.6 50.7
------ -----
Total $666,883 $437,103 52.6 43.6
GROSS MARGIN %:
New vehicle retail
sales 4.7 5.9
Used vehicle
retail sales 5.3 5.2
Used vehicle
wholesale sales (3.0) (2.3)
Total used 3.8 3.8
Parts and service 57.9 57.9
Finance, insurance
and other, net 100.0 100.0
Total 11.2 11.7
GROSS PROFIT:
New vehicle retail
sales $15,907 $13,744 15.7 9.5
Used vehicle
retail sales 11,103 6,679 66.2 55.2
Used vehicle
wholesale sales (1,378) (715) (92.7) (82.7)
------ ----
Total used 9,725 5,964 63.1 51.9
Parts and service 33,555 21,440 56.5 47.4
Finance, insurance
and other, net 15,617 9,784 59.6 50.7
------ -----
Total $74,804 $50,932 46.9 38.3
UNITS SOLD:
Retail new
vehicles sold 10,914 7,894 38.3
Retail used
vehicles sold 8,501 5,813 46.2
Wholesale used
vehicles sold 5,955 4,137 43.9
----- -----
Total used 14,456 9,950 45.3
AVERAGE RETAIL SALES PRICE:
New vehicle retail $31,028 $29,315 5.8 (0.4)
Used vehicle
retail $24,480 $22,089 10.8 4.2
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $1,457 $1,741 (16.3) (20.8)
Used vehicle
retail sales 1,306 1,149 13.7 6.1
Used vehicle
wholesale sales (231) (173) (33.5) (26.9)
Total used 673 599 12.4 4.5
Finance, insurance
and other, net
(per retail unit) $804 $714 12.6 6.4
OTHER:
SG&A expenses $62,258 $42,456 46.6 37.8
Adjusted SG&A
expenses(1) $62,258 $42,168 47.6 38.7
SG&A as % revenues 9.3 9.7
Adjusted SG&A as %
revenues (1) 9.3 9.6
SG&A as % gross
profit 83.2 83.4
Adjusted SG&A as %
gross profit (1) 83.2 82.8
Operating margin % 1.4 1.5
Adjusted operating
margin % (1) 1.4 1.6
Pretax margin % 0.9 1.1
Adjusted pretax
margin % (1) 0.9 1.2
INTEREST EXPENSE:
Floorplan interest
expense $(1,617) $(1,053) 53.6 44.3
Floorplan
assistance 240 220 9.1 2.8
--- ---
Net floorplan
expense $(1,377) $(833) 65.3 55.2
Other interest
expense, net $(1,790) $(684) 161.7 144.4
Six Months Ended June 30,
-------------------------
2018 2017 % Increase/ Constant Currency (1)
% Increase/ (Decrease)
(Decrease)
---
REVENUES:
New vehicle retail
sales $693,039 $490,055 41.4 29.1
Used vehicle
retail sales 400,657 243,775 64.4 50.6
Used vehicle
wholesale sales 92,712 60,957 52.1 39.1
------ ------
Total used 493,369 304,732 61.9 48.3
Parts and service 111,137 73,831 50.5 37.8
Finance, insurance
and other, net 29,880 18,812 58.8 45.6
------ ------
Total $1,327,425 $887,430 49.6 36.7
GROSS MARGIN %:
New vehicle retail
sales 5.0 5.7
Used vehicle
retail sales 4.9 5.0
Used vehicle
wholesale sales (1.4) (0.8)
Total used 3.7 3.8
Parts and service 57.2 57.8
Finance, insurance
and other, net 100.0 100.0
Total 11.0 11.4
GROSS PROFIT:
New vehicle retail
sales $34,418 $28,145 22.3 11.8
Used vehicle
retail sales 19,663 12,108 62.4 48.4
Used vehicle
wholesale sales (1,308) (504) (159.5) (150.8)
------ ----
Total used 18,355 11,604 58.2 44.0
Parts and service 63,602 42,665 49.1 36.6
Finance, insurance
and other, net 29,880 18,812 58.8 45.6
------ ------
Total $146,255 $101,226 44.5 32.2
UNITS SOLD:
Retail new
vehicles sold 21,364 16,912 26.3
Retail used
vehicles sold 16,336 11,424 43.0
Wholesale used
vehicles sold 11,542 8,306 39.0
------ -----
Total used 27,878 19,730 41.3
AVERAGE RETAIL SALES PRICE:
New vehicle retail $32,440 $28,977 12.0 2.2
Used vehicle
retail $24,526 $21,339 14.9 5.3
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $1,611 $1,664 (3.2) (11.5)
Used vehicle
retail sales 1,204 1,060 13.6 3.8
Used vehicle
wholesale sales (113) (61) (85.2) (80.5)
Total used 658 588 11.9 1.9
Finance, insurance
and other, net
(per retail unit) $793 $664 19.4 9.5
OTHER:
SG&A expenses $121,854 $84,080 44.9 32.6
Adjusted SG&A
expenses(1) $121,854 $83,792 45.4 33.0
SG&A as % revenues 9.2 9.5
Adjusted SG&A as %
revenues (1) 9.2 9.4
SG&A as % gross
profit 83.3 83.1
Adjusted SG&A as %
gross profit (1) 83.3 82.8
Operating margin % 1.4 1.5
Adjusted operating
margin % (1) 1.4 1.6
Pretax margin % 0.9 1.2
Adjusted pretax
margin % (1) 0.9 1.2
INTEREST EXPENSE:
Floorplan interest
expense $(3,131) $(2,087) 50.0 37.3
Floorplan
assistance 526 449 17.1 6.8
--- ---
Net floorplan
expense $(2,605) $(1,638) 59.0 45.6
Other interest
expense, net $(3,322) $(1,265) 162.6 140.3
(1) See the section of this release entitled
"Non-GAAP Financial Measures" and the tables
attached hereto for information regarding
certain selected items that the Company
believes impact comparability of financial
results between reporting periods, as well as
for information regarding non-GAAP financial
measures and their reconciliation to the most
directly comparable measures as reported in
accordance with U.S. GAAP.
Group 1 Automotive, Inc.
Additional Information - Brazil
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended June 30,
2018 2017 % Increase/ Constant Currency (1)
(Decrease) % Increase/ (Decrease)
----------------------
REVENUES:
New vehicle retail
sales $70,053 $73,582 (4.8) 6.2
Used vehicle
retail sales 21,738 21,350 1.8 13.6
Used vehicle
wholesale sales 3,546 2,453 44.6 63.5
----- -----
Total used 25,284 23,803 6.2 18.8
Parts and service 11,244 11,883 (5.4) 5.8
Finance, insurance
and other, net 1,997 2,134 (6.4) 4.6
----- -----
Total $108,578 $111,402 (2.5) 8.8
GROSS MARGIN %:
New vehicle retail
sales 6.2 5.7
Used vehicle
retail sales 6.0 7.2
Used vehicle
wholesale sales 1.9 8.2
Total used 5.4 7.3
Parts and service 44.5 45.9
Finance, insurance
and other, net 100.0 100.0
Total 11.7 12.1
GROSS PROFIT:
New vehicle retail
sales $4,317 $4,167 3.6 15.6
Used vehicle
retail sales 1,302 1,530 (14.9) (4.9)
Used vehicle
wholesale sales 66 202 (67.3) (66.7)
--- ---
Total used 1,368 1,732 (21.0) (12.2)
Parts and service 5,007 5,454 (8.2) 2.6
Finance, insurance
and other, net 1,997 2,134 (6.4) 4.6
----- -----
Total $12,689 $13,487 (5.9) 5.0
UNITS SOLD:
Retail new
vehicles sold 2,169 2,180 (0.5)
Retail used
vehicles sold 1,023 988 3.5
Wholesale used
vehicles sold 322 237 35.9
--- ---
Total used 1,345 1,225 9.8
AVERAGE RETAIL SALES PRICE:
New vehicle retail $32,297 $33,753 (4.3) 6.8
Used vehicle
retail $21,249 $21,609 (1.7) 9.7
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $1,990 $1,911 4.1 16.1
Used vehicle
retail sales 1,273 1,549 (17.8) (8.2)
Used vehicle
wholesale sales 205 852 (75.9) (75.5)
Total used 1,017 1,414 (28.1) (20.0)
Finance, insurance
and other, net
(per retail unit) $626 $674 (7.1) 3.8
OTHER:
SG&A expenses $11,555 $12,268 (5.8) 5.3
Adjusted SG&A
expenses(1) $11,005 $12,268 (10.3) 0.1
SG&A as % revenues 10.6 11.0
Adjusted SG&A as %
revenues (1) 10.1 11.0
SG&A as % gross
profit 91.1 91.0
Adjusted SG&A as %
gross profit (1) 86.7 91.0
Operating margin % 0.6 0.8
Adjusted operating
margin % (1) 1.1 0.8
Pretax margin % 0.2 0.6
Adjusted pretax
margin % (1) 0.7 0.6
INTEREST EXPENSE:
Floorplan interest
expense $(137) $(111) 23.4 37.1
Floorplan
assistance - - - -
--- ---
Net floorplan
expense $(137) $(111) 23.4 37.1
Other interest
expense, net $(292) $(59) 394.9 442.1
Six Months Ended June 30,
-------------------------
2018 2017 % Increase/ Constant Currency (1)
(Decrease) % Increase/ (Decrease)
----------------------
REVENUES:
New vehicle retail
sales $139,286 $133,906 4.0 11.8
Used vehicle
retail sales 45,929 44,961 2.2 9.6
Used vehicle
wholesale sales 7,388 5,556 33.0 44.1
----- -----
Total used 53,317 50,517 5.5 13.4
Parts and service 23,104 23,641 (2.3) 5.0
Finance, insurance
and other, net 3,869 4,121 (6.1) 1.3
----- -----
Total $219,576 $212,185 3.5 11.2
GROSS MARGIN %:
New vehicle retail
sales 5.8 5.8
Used vehicle
retail sales 6.0 7.1
Used vehicle
wholesale sales 2.9 8.2
Total used 5.6 7.2
Parts and service 44.9 44.8
Finance, insurance
and other, net 100.0 100.0
Total 11.5 12.3
GROSS PROFIT:
New vehicle retail
sales $8,098 $7,784 4.0 12.2
Used vehicle
retail sales 2,752 3,174 (13.3) (7.0)
Used vehicle
wholesale sales 217 453 (52.1) (50.7)
--- ---
Total used 2,969 3,627 (18.1) (12.4)
Parts and service 10,380 10,587 (2.0) 5.2
Finance, insurance
and other, net 3,869 4,121 (6.1) 1.3
----- -----
Total $25,316 $26,119 (3.1) 4.2
UNITS SOLD:
Retail new
vehicles sold 4,236 3,954 7.1
Retail used
vehicles sold 2,094 2,014 4.0
Wholesale used
vehicles sold 679 616 10.2
--- ---
Total used 2,773 2,630 5.4
AVERAGE RETAIL SALES PRICE:
New vehicle retail $32,881 $33,866 (2.9) 4.4
Used vehicle
retail $21,934 $22,324 (1.7) 5.4
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $1,912 $1,969 (2.9) 4.7
Used vehicle
retail sales 1,314 1,576 (16.6) (10.5)
Used vehicle
wholesale sales 320 735 (56.5) (55.3)
Total used 1,071 1,379 (22.3) (16.9)
Finance, insurance
and other, net
(per retail unit) $611 $691 (11.6) (4.5)
OTHER:
SG&A expenses $23,365 $24,150 (3.3) 4.0
Adjusted SG&A
expenses(1) $22,815 $24,150 (5.5) 1.3
SG&A as % revenues 10.6 11.4
Adjusted SG&A as %
revenues (1) 10.4 11.4
SG&A as % gross
profit 92.3 92.5
Adjusted SG&A as %
gross profit (1) 90.1 92.5
Operating margin % 0.5 0.6
Adjusted operating
margin % (1) 0.7 0.6
Pretax margin % 0.1 0.4
Adjusted pretax
margin % (1) 0.3 0.4
INTEREST EXPENSE:
Floorplan interest
expense $(373) $(141) 164.5 178.2
Floorplan
assistance - - - -
--- ---
Net floorplan
expense $(373) $(141) 164.5 178.2
Other interest
expense, net $(564) $(205) 175.1 193.7
(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.
Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended June 30,
2018 2017 % Increase/ Constant Currency % (1)
Increase/ (Decrease)
(Decrease)
---
REVENUES:
New vehicle retail
sales $1,555,570 $1,448,768 7.4 6.6
Used vehicle
retail sales 821,853 685,949 19.8 18.4
Used vehicle
wholesale sales 92,854 99,377 (6.6) (8.9)
------ ------
Total used 914,707 785,326 16.5 14.9
Parts and service 358,129 331,631 8.0 7.4
Finance, insurance
and other, net 115,056 106,470 8.1 7.5
------- -------
Total $2,943,462 $2,672,195 10.2 9.2
GROSS MARGIN %:
New vehicle retail
sales 4.9 5.2
Used vehicle
retail sales 6.2 6.5
Used vehicle
wholesale sales 0.3 (0.3)
Total used 5.6 5.7
Parts and service 54.5 53.9
Finance, insurance
and other, net 100.0 100.0
Total 14.9 15.2
GROSS PROFIT:
New vehicle retail
sales $76,582 $74,911 2.2 1.8
Used vehicle
retail sales 51,214 44,913 14.0 12.7
Used vehicle
wholesale sales 241 (267) 190.3 217.3
--- ----
Total used 51,455 44,646 15.3 14.1
Parts and service 195,070 178,865 9.1 8.3
Finance, insurance
and other, net 115,056 106,470 8.1 7.5
------- -------
Total $438,163 $404,892 8.2 7.5
UNITS SOLD:
Retail new
vehicles sold 43,471 40,876 6.3
Retail used
vehicles sold 38,008 32,003 18.8
Wholesale used
vehicles sold 13,569 14,075 (3.6)
------ ------
Total used 51,577 46,078 11.9
AVERAGE RETAIL SALES PRICE:
New vehicle retail $35,784 $35,443 1.0 0.2
Used vehicle
retail $21,623 $21,434 0.9 (0.3)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $1,762 $1,833 (3.9) (4.3)
Used vehicle
retail sales 1,347 1,403 (4.0) (5.1)
Used vehicle
wholesale sales 18 (19) 194.7 221.7
Total used 998 969 3.0 1.9
Finance, insurance
and other, net
(per retail unit) $1,412 $1,461 (3.4) (3.9)
OTHER:
SG&A expenses $308,092 $298,568 3.2 2.4
Adjusted SG&A
expenses (1) $319,849 $297,637 7.5 6.6
SG&A as % revenues 10.5 11.2
Adjusted SG&A as %
revenues (1) 10.9 11.1
SG&A as % gross
profit 70.3 73.7
Adjusted SG&A as %
gross profit (1) 73.0 73.5
Operating margin % 3.7 3.5
Adjusted operating
margin % (1) 3.5 3.5
Pretax margin % 2.6 2.3
Adjusted pretax
margin % (1) 2.3 2.3
INTEREST EXPENSE:
Floorplan interest
expense $(14,563) $(13,226) 10.1 9.5
Floorplan
assistance 11,447 11,672 (1.9) (2.1)
------ ------
Net floorplan
expense $(3,116) $(1,554) 100.5 96.2
Other interest
expense, net $(19,414) $(17,315) 12.1 11.6
Six Months Ended June 30,
2018 2017 % Increase/ Constant Currency % (1)
(Decrease) Increase/ (Decrease)
--------------------
REVENUES:
New vehicle retail
sales $3,069,160 $2,785,981 10.2 8.4
Used vehicle
retail sales 1,602,423 1,346,876 19.0 16.7
Used vehicle
wholesale sales 196,883 203,534 (3.3) (6.8)
------- -------
Total used 1,799,306 1,550,410 16.1 13.6
Parts and service 707,644 651,329 8.6 7.5
Finance, insurance
and other, net 227,378 203,304 11.8 10.8
------- -------
Total $5,803,488 $5,191,024 11.8 9.9
GROSS MARGIN %:
New vehicle retail
sales 5.0 5.2
Used vehicle
retail sales 5.9 6.7
Used vehicle
wholesale sales 1.0 (0.1)
Total used 5.4 5.8
Parts and service 54.0 53.9
Finance, insurance
and other, net 100.0 100.0
Total 14.8 15.2
GROSS PROFIT:
New vehicle retail
sales $152,009 $144,138 5.5 3.9
Used vehicle
retail sales 94,709 89,918 5.3 3.7
Used vehicle
wholesale sales 1,896 (167) 1235.3 1266.5
----- ----
Total used 96,605 89,751 7.6 6.0
Parts and service 381,934 351,221 8.7 7.4
Finance, insurance
and other, net 227,378 203,304 11.8 10.8
------- -------
Total $857,926 $788,414 8.8 7.5
UNITS SOLD:
Retail new
vehicles sold 84,661 79,166 6.9
Retail used
vehicles sold 74,224 63,569 16.8
Wholesale used
vehicles sold 28,896 28,604 1.0
------ ------
Total used 103,120 92,173 11.9
AVERAGE RETAIL SALES PRICE:
New vehicle retail $36,252 $35,192 3.0 1.3
Used vehicle
retail $21,589 $21,188 1.9 -
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $1,796 $1,821 (1.4) (2.9)
Used vehicle
retail sales 1,276 1,414 (9.8) (11.2)
Used vehicle
wholesale sales 66 (6) 1200.0 1254.7
Total used 937 974 (3.8) (5.2)
Finance, insurance
and other, net
(per retail unit) $1,431 $1,424 0.5 (0.5)
OTHER:
SG&A expenses $632,439 $588,347 7.5 6.0
Adjusted SG&A
expenses(1) $644,196 $589,249 9.3 7.8
SG&A as % revenues 10.9 11.3
Adjusted SG&A as %
revenues (1) 11.1 11.4
SG&A as % gross
profit 73.7 74.6
Adjusted SG&A as %
gross profit(1) 75.1 74.7
Operating margin % 3.2 3.3
Adjusted operating
margin % (1) 3.1 3.3
Pretax margin % 2.1 2.2
Adjusted pretax
margin %(1) 2.0 2.2
INTEREST EXPENSE:
Floorplan interest
expense $(28,650) $(25,168) 13.8 12.9
Floorplan
assistance 22,482 22,185 1.3 1.1
------ ------
Net floorplan
expense $(6,168) $(2,983) 106.8 100.0
Other interest
expense, net $(38,234) $(34,314) 11.4 10.7
(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.
Group 1 Automotive, Inc.
Additional Information - Same Store U.S. (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended June 30,
---------------------------
2018 2017 % Increase/
(Decrease)
----------
REVENUES:
New
vehicle
retail
sales $1,121,138 $1,139,798 (1.6)
Used
vehicle
retail
sales 579,816 534,934 8.4
Used
vehicle
wholesale
sales 41,158 66,187 (37.8)
------ ------
Total
used 620,974 601,121 3.3
Parts
and
service 284,494 281,555 1.0
Finance,
insurance
and
other,
net 95,298 93,933 1.5
------ ------
Total $2,121,904 $2,116,407 0.3
GROSS MARGIN %:
New
vehicle
retail
sales 4.9 5.0
Used
vehicle
retail
sales 6.5 6.9
Used
vehicle
wholesale
sales 3.8 0.4
Total
used 6.3 6.1
Parts
and
service 54.2 53.8
Finance,
insurance
and
other,
net 100.0 100.0
Total 16.2 16.0
GROSS PROFIT:
New
vehicle
retail
sales $54,648 $56,783 (3.8)
Used
vehicle
retail
sales 37,716 36,649 2.9
Used
vehicle
wholesale
sales 1,561 254 514.6
----- ---
Total
used 39,277 36,903 6.4
Parts
and
service 154,088 151,348 1.8
Finance,
insurance
and
other,
net 95,298 93,933 1.5
------ ------
Total $343,311 $338,967 1.3
UNITS SOLD:
Retail
new
vehicles
sold 29,830 30,730 (2.9)
Retail
used
vehicles
sold 27,971 25,169 11.1
Wholesale
used
vehicles
sold 7,133 9,681 (26.3)
----- -----
Total
used 35,104 34,850 0.7
AVERAGE RETAIL SALES PRICE:
New
vehicle
retail $37,584 $37,091 1.3
Used
vehicle
retail $20,729 $21,254 (2.5)
GROSS PROFIT PER UNIT SOLD:
New
vehicle
retail
sales $1,832 $1,848 (0.9)
Used
vehicle
retail
sales 1,348 1,456 (7.4)
Used
vehicle
wholesale
sales 219 26 742.3
Total
used 1,119 1,059 5.7
Finance,
insurance
and
other,
net
(per
retail
unit) $1,649 $1,680 (1.8)
OTHER:
SG&A
expenses $249,033 $242,559 2.7
Adjusted
SG&A
expenses(2) $241,221 $241,916 (0.3)
SG&A
as
%
revenues 11.7 11.5
Adjusted
SG&A
as
%
revenues
(2) 11.4 11.4
SG&A
as
%
gross
profit 72.5 71.6
Adjusted
SG&A
as
%
gross
profit
(2) 70.3 71.4
Operating
margin
% 3.7 4.0
Adjusted
operating
margin
%
(2) 4.2 4.0
Six Months Ended June 30,
-------------------------
2018 2017 % Increase/
(Decrease)
----------
REVENUES:
New
vehicle
retail
sales $2,189,357 $2,158,047 1.5
Used
vehicle
retail
sales 1,133,549 1,056,879 7.3
Used
vehicle
wholesale
sales 93,938 136,732 (31.3)
------ -------
Total
used 1,227,487 1,193,611 2.8
Parts
and
service 564,897 552,714 2.2
Finance,
insurance
and
other,
net 189,450 179,323 5.6
------- -------
Total $4,171,191 $4,083,695 2.1
GROSS MARGIN %:
New
vehicle
retail
sales 4.9 5.0
Used
vehicle
retail
sales 6.2 7.1
Used
vehicle
wholesale
sales 3.2 (0.1)
Total
used 6.0 6.2
Parts
and
service 53.6 53.8
Finance,
insurance
and
other,
net 100.0 100.0
Total 16.1 16.1
GROSS PROFIT:
New
vehicle
retail
sales $106,718 $107,991 (1.2)
Used
vehicle
retail
sales 70,744 74,579 (5.1)
Used
vehicle
wholesale
sales 2,986 (90) 3,417.8
----- ---
Total
used 73,730 74,489 (1.0)
Parts
and
service 302,998 297,346 1.9
Finance,
insurance
and
other,
net 189,450 179,323 5.6
------- -------
Total $672,896 $659,149 2.1
UNITS SOLD:
Retail
new
vehicles
sold 57,980 58,228 (0.4)
Retail
used
vehicles
sold 54,829 50,098 9.4
Wholesale
used
vehicles
sold 16,356 19,662 (16.8)
------ ------
Total
used 71,185 69,760 2.0
AVERAGE RETAIL SALES PRICE:
New
vehicle
retail $37,761 $37,062 1.9
Used
vehicle
retail $20,674 $21,096 (2.0)
GROSS PROFIT PER UNIT SOLD:
New
vehicle
retail
sales $1,841 $1,855 (0.8)
Used
vehicle
retail
sales 1,290 1,489 (13.4)
Used
vehicle
wholesale
sales 183 (5) 3,760.0
Total
used 1,036 1,068 (3.0)
Finance,
insurance
and
other,
net
(per
retail
unit) $1,679 $1,655 1.5
OTHER:
SG&A
expenses $496,645 $478,610 3.8
Adjusted
SG&A
expenses(2) $488,833 $479,800 1.9
SG&A
as
%
revenues 11.9 11.7
Adjusted
SG&A
as
%
revenues
(2) 11.7 11.7
SG&A
as
%
gross
profit 73.8 72.6
Adjusted
SG&A
as
%
gross
profit
(2) 72.6 72.8
Operating
margin
% 3.5 3.9
Adjusted
operating
margin
%
(2) 3.8 3.8
(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
Group 1 Automotive, Inc.
Additional Information - Same Store U.K. (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended June 30,
2018 2017 % Increase/ Constant Currency (2)
% Increase/ (Decrease)
(Decrease)
---
REVENUES:
New vehicle retail
sales $254,118 $229,878 10.5 4.0
Used vehicle
retail sales 149,344 127,475 17.2 10.2
Used vehicle
wholesale sales 34,939 30,247 15.5 8.7
------ ------
Total used 184,283 157,722 16.8 9.9
Parts and service 42,786 36,808 16.2 9.4
Finance, insurance
and other, net 11,895 9,734 22.2 15.3
------ -----
Total $493,082 $434,142 13.6 6.9
GROSS MARGIN %:
New vehicle retail
sales 5.2 6.0
Used vehicle
retail sales 5.3 5.2
Used vehicle
wholesale sales (2.7) (2.3)
Total used 3.8 3.8
Parts and service 58.2 57.9
Finance, insurance
and other, net 100.0 100.0
Total 11.6 11.7
GROSS PROFIT:
New vehicle retail
sales $13,251 $13,702 (3.3) (8.5)
Used vehicle
retail sales 7,974 6,636 20.2 12.3
Used vehicle
wholesale sales (928) (696) (33.3) (25.9)
---- ----
Total used 7,046 5,940 18.6 10.7
Parts and service 24,904 21,316 16.8 10.0
Finance, insurance
and other, net 11,895 9,734 22.2 15.3
------ -----
Total $57,096 $50,692 12.6 6.1
UNITS SOLD:
Retail new
vehicles sold 8,374 7,812 7.2
Retail used
vehicles sold 5,998 5,758 4.2
Wholesale used
vehicles sold 4,487 4,104 9.3
----- -----
Total used 10,485 9,862 6.3
AVERAGE RETAIL SALES PRICE:
New vehicle retail $30,346 $29,426 3.1 (2.9)
Used vehicle
retail $24,899 $22,139 12.5 5.8
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $1,582 $1,754 (9.8) (14.7)
Used vehicle
retail sales 1,329 1,152 15.4 7.8
Used vehicle
wholesale sales (207) (170) (21.8) (15.2)
Total used 672 602 11.6 4.1
Finance, insurance
and other, net
(per retail unit) $828 $717 15.5 8.9
OTHER:
SG&A expenses $46,319 $42,087 10.1 3.4
Adjusted SG&A
expenses(2) $46,319 $41,799 10.8 4.1
SG&A as % revenues 9.4 9.7
Adjusted SG&A as %
revenues (2) 9.4 9.6
SG&A as % gross
profit 81.1 83.0
Adjusted SG&A as %
gross profit (2) 81.1 82.5
Operating margin % 1.7 1.6
Adjusted operating
margin % (2) 1.7 1.6
Six Months Ended June 30,
2018 2017 % Increase/ Constant Currency (2)
(Decrease) % Increase/ (Decrease)
----------------------
REVENUES:
New vehicle retail
sales $524,178 $486,582 7.7 (1.7)
Used vehicle
retail sales 295,584 242,281 22.0 11.7
Used vehicle
wholesale sales 71,012 60,662 17.1 7.1
------ ------
Total used 366,596 302,943 21.0 10.8
Parts and service 84,011 73,254 14.7 5.0
Finance, insurance
and other, net 22,530 18,707 20.4 10.4
------ ------
Total $997,315 $881,486 13.1 3.4
GROSS MARGIN %:
New vehicle retail
sales 5.3 5.8
Used vehicle
retail sales 5.0 5.0
Used vehicle
wholesale sales (1.4) (0.8)
Total used 3.7 3.8
Parts and service 57.6 57.9
Finance, insurance
and other, net 100.0 100.0
Total 11.3 11.4
GROSS PROFIT:
New vehicle retail
sales $27,835 $27,999 (0.6) (9.1)
Used vehicle
retail sales 14,645 12,019 21.8 11.4
Used vehicle
wholesale sales (978) (484) (102.1) (94.1)
---- ----
Total used 13,667 11,535 18.5 7.9
Parts and service 48,409 42,389 14.2 4.6
Finance, insurance
and other, net 22,530 18,707 20.4 10.4
------ ------
Total $112,441 $100,630 11.7 2.3
UNITS SOLD:
Retail new
vehicles sold 16,386 16,716 (2.0)
Retail used
vehicles sold 11,862 11,336 4.6
Wholesale used
vehicles sold 8,820 8,246 7.0
----- -----
Total used 20,682 19,582 5.6
AVERAGE RETAIL SALES PRICE:
New vehicle retail $31,989 $29,109 9.9 0.3
Used vehicle
retail $24,919 $21,373 16.6 6.8
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $1,699 $1,675 1.4 (7.2)
Used vehicle
retail sales 1,235 1,060 16.5 6.4
Used vehicle
wholesale sales (111) (59) (88.1) (81.5)
Total used 661 589 12.2 2.1
Finance, insurance
and other, net
(per retail unit) $798 $667 19.6 9.7
OTHER:
SG&A expenses $93,134 $83,017 12.2 2.6
Adjusted SG&A
expenses(2) $93,134 $82,729 12.6 3.0
SG&A as % revenues 9.3 9.4
Adjusted SG&A as %
revenues (2) 9.3 9.4
SG&A as % gross
profit 82.8 82.5
Adjusted SG&A as %
gross profit (2) 82.8 82.2
Operating margin % 1.5 1.6
Adjusted operating
margin % (2) 1.5 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 June 30,
---------------------------
2018 2017 % Increase/ Constant Currency (2)
(Decrease)
% Increase/ (Decrease)
----------------------
REVENUES:
New vehicle retail
sales $67,152 $73,584 (8.7) 1.7
Used vehicle
retail sales 21,270 21,350 (0.4) 11.1
Used vehicle
wholesale sales 3,547 2,453 44.6 63.5
----- -----
Total used 24,817 23,803 4.3 16.5
Parts and service 10,932 11,887 (8.0) 2.7
Finance, insurance
and other, net 1,966 2,090 (5.9) 5.1
----- -----
Total $104,867 $111,364 (5.8) 5.0
GROSS MARGIN %:
New vehicle retail
sales 6.2 5.7
Used vehicle
retail sales 6.0 7.2
Used vehicle
wholesale sales 1.9 8.2
Total used 5.4 7.3
Parts and service 44.2 45.9
Finance, insurance
and other, net 100.0 100.0
Total 11.7 12.1
GROSS PROFIT:
New vehicle retail
sales $4,166 $4,169 (0.1) 11.4
Used vehicle
retail sales 1,278 1,537 (16.9) (7.1)
Used vehicle
wholesale sales 66 202 (67.3) (66.7)
--- ---
Total used 1,344 1,739 (22.7) (14.1)
Parts and service 4,831 5,457 (11.5) (1.2)
Finance, insurance
and other, net 1,966 2,090 (5.9) 5.1
----- -----
Total $12,307 $13,455 (8.5) 2.0
UNITS SOLD:
Retail new
vehicles sold 2,063 2,180 (5.4)
Retail used
vehicles sold 996 988 0.8
Wholesale used
vehicles sold 314 237 32.5
--- ---
Total used 1,310 1,225 6.9
AVERAGE RETAIL SALES PRICE:
New vehicle retail $32,551 $33,754 (3.6) 7.5
Used vehicle
retail $21,355 $21,609 (1.2) 10.2
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $2,019 $1,912 5.6 17.7
Used vehicle
retail sales 1,283 1,556 (17.5) (7.9)
Used vehicle
wholesale sales 210 852 (75.4) (74.9)
Total used 1,026 1,420 (27.7) (19.6)
Finance, insurance
and other, net
(per retail unit) $643 $660 (2.6) 8.9
OTHER:
SG&A expenses $11,080 $12,031 (7.9) 3.1
Adjusted SG&A
expenses(2) $10,653 $12,031 (11.5) (1.1)
SG&A as % revenues 10.6 10.8
Adjusted SG&A as %
revenues (2) 10.2 10.8
SG&A as % gross
profit 90.0 89.4
Adjusted SG&A as %
gross profit (2) 86.6 89.4
Operating margin % 0.7 1.0
Adjusted operating
margin % (2) 1.1 1.0
Six Months Ended June 30,
2018 2017 % Increase/ Constant Currency (2)
% Increase/ (Decrease)
(Decrease)
---
REVENUES:
New vehicle retail
sales $136,387 $131,670 3.6 11.2
Used vehicle
retail sales 45,461 43,151 5.4 13.0
Used vehicle
wholesale sales 7,388 5,539 33.4 44.5
----- -----
Total used 52,849 48,690 8.5 16.6
Parts and service 22,791 22,985 (0.8) 6.4
Finance, insurance
and other, net 3,838 3,881 (1.1) 6.6
----- -----
Total $215,865 $207,226 4.2 11.8
GROSS MARGIN %:
New vehicle retail
sales 5.8 5.8
Used vehicle
retail sales 6.0 7.3
Used vehicle
wholesale sales 2.9 8.2
Total used 5.6 7.4
Parts and service 44.8 45.7
Finance, insurance
and other, net 100.0 100.0
Total 11.6 12.4
GROSS PROFIT:
New vehicle retail
sales $7,948 $7,688 3.4 11.4
Used vehicle
retail sales 2,730 3,129 (12.8) (6.4)
Used vehicle
wholesale sales 217 453 (52.1) (50.7)
--- ---
Total used 2,947 3,582 (17.7) (12.0)
Parts and service 10,203 10,499 (2.8) 4.1
Finance, insurance
and other, net 3,838 3,881 (1.1) 6.6
----- -----
Total $24,936 $25,650 (2.8) 4.4
UNITS SOLD:
Retail new
vehicles sold 4,130 3,856 7.1
Retail used
vehicles sold 2,067 1,969 5.0
Wholesale used
vehicles sold 671 506 32.6
--- ---
Total used 2,738 2,475 10.6
AVERAGE RETAIL SALES PRICE:
New vehicle retail $33,023 $34,147 (3.3) 3.8
Used vehicle
retail $21,994 $21,915 0.4 7.6
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $1,924 $1,994 (3.5) 4.0
Used vehicle
retail sales 1,321 1,589 (16.9) (10.9)
Used vehicle
wholesale sales 323 895 (63.9) (62.8)
Total used 1,076 1,447 (25.6) (20.5)
Finance, insurance
and other, net
(per retail unit) $619 $666 (7.1) 0.2
OTHER:
SG&A expenses $22,853 $23,346 (2.1) 5.2
Adjusted SG&A
expenses(2) $22,426 $23,346 (3.9) 3.0
SG&A as % revenues 10.6 11.3
Adjusted SG&A as %
revenues (2) 10.4 11.3
SG&A as % gross
profit 91.6 91.0
Adjusted SG&A as %
gross profit (2) 89.9 91.0
Operating margin % 0.6 0.8
Adjusted operating
margin % (2) 0.8 0.8
(1) Same Store amounts include the results for
the identical months in each period presented
in the comparison, commencing with the first
full month we owned the dealership and, in the
case of dispositions, ending with the last full
month we owned it. Same Store results also
include the activities of our corporate office.
(2)See the section of this release entitled
"Non-GAAP Financial Measures" and the tables
attached hereto for information regarding
certain selected items that the Company
believes impact comparability of financial
results between reporting periods, as well as
for information regarding non-GAAP financial
measures and their reconciliation to the most
directly comparable measures as reported in
accordance with U.S. GAAP.
Group 1 Automotive, Inc.
Additional Information - Same Store Consolidated (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended June 30,
2018 2017 % Increase/ Constant Currency (2)
(Decrease)
% Increase/ (Decrease)
----------------------
REVENUES:
New vehicle retail
sales $1,442,408 $1,443,260 (0.1) (0.6)
Used vehicle
retail sales 750,430 683,759 9.8 8.8
Used vehicle
wholesale sales 79,644 98,887 (19.5) (21.1)
------ ------
Total used 830,074 782,646 6.1 5.0
Parts and service 338,212 330,250 2.4 2.0
Finance, insurance
and other, net 109,159 105,757 3.2 2.8
------- -------
Total $2,719,853 $2,661,913 2.2 1.5
GROSS MARGIN %:
New vehicle retail
sales 5.0 5.2
Used vehicle
retail sales 6.3 6.6
Used vehicle
wholesale sales 0.9 (0.2)
Total used 5.7 5.7
Parts and service 54.4 53.9
Finance, insurance
and other, net 100.0 100.0
Total 15.2 15.1
GROSS PROFIT:
New vehicle retail
sales $72,065 $74,654 (3.5) (3.8)
Used vehicle
retail sales 46,968 44,822 4.8 4.0
Used vehicle
wholesale sales 699 (240) 391.3 413.1
--- ----
Total used 47,667 44,582 6.9 6.2
Parts and service 183,823 178,121 3.2 2.7
Finance, insurance
and other, net 109,159 105,757 3.2 2.8
------- -------
Total $412,714 $403,114 2.4 1.9
UNITS SOLD:
Retail new
vehicles sold 40,267 40,722 (1.1)
Retail used
vehicles sold 34,965 31,915 9.6
Wholesale used
vehicles sold 11,934 14,022 (14.9)
------ ------
Total used 46,899 45,937 2.1
AVERAGE RETAIL SALES PRICE:
New vehicle retail $35,821 $35,442 1.1 0.6
Used vehicle
retail $21,462 $21,424 0.2 (0.7)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $1,790 $1,833 (2.3) (2.7)
Used vehicle
retail sales 1,343 1,404 (4.3) (5.1)
Used vehicle
wholesale sales 59 (17) 447.1 467.9
Total used 1,016 971 4.6 4.0
Finance, insurance
and other, net
(per retail unit) $1,451 $1,456 (0.3) (0.7)
OTHER:
SG&A expenses $306,432 $296,677 3.3 2.8
Adjusted SG&A
expenses(2) $298,193 $295,746 0.8 0.3
SG&A as % revenues 11.3 11.1
Adjusted SG&A as %
revenues (2) 11.0 11.1
SG&A as % gross
profit 74.2 73.6
Adjusted SG&A as %
gross profit (2) 72.3 73.4
Operating margin % 3.2 3.5
Adjusted operating
margin % (2) 3.6 3.5
Six Months Ended June 30,
2018 2017 % Increase/ Constant Currency (2)
(Decrease) % Increase/ (Decrease)
----------------------
REVENUES:
New vehicle retail
sales $2,849,922 $2,776,299 2.7 1.4
Used vehicle
retail sales 1,474,594 1,342,311 9.9 8.2
Used vehicle
wholesale sales 172,338 202,933 (15.1) (17.8)
------- -------
Total used 1,646,932 1,545,244 6.6 4.8
Parts and service 671,699 648,953 3.5 2.7
Finance, insurance
and other, net 215,818 201,911 6.9 6.1
------- -------
Total $5,384,371 $5,172,407 4.1 2.7
GROSS MARGIN %:
New vehicle retail
sales 5.0 5.2
Used vehicle
retail sales 6.0 6.7
Used vehicle
wholesale sales 1.3 (0.1)
Total used 5.5 5.8
Parts and service 53.8 54.0
Finance, insurance
and other, net 100.0 100.0
Total 15.0 15.2
GROSS PROFIT:
New vehicle retail
sales $142,501 $143,678 (0.8) (2.0)
Used vehicle
retail sales 88,119 89,727 (1.8) (3.0)
Used vehicle
wholesale sales 2,225 (121) 1,938.8 1979.1
----- ----
Total used 90,344 89,606 0.8 (0.3)
Parts and service 361,610 350,234 3.2 2.3
Finance, insurance
and other, net 215,818 201,911 6.9 6.1
------- -------
Total $810,273 $785,429 3.2 2.2
UNITS SOLD:
Retail new
vehicles sold 78,496 78,800 (0.4)
Retail used
vehicles sold 68,758 63,403 8.4
Wholesale used
vehicles sold 25,847 28,414 (9.0)
------ ------
Total used 94,605 91,817 3.0
AVERAGE RETAIL SALES PRICE:
New vehicle retail $36,307 $35,232 3.1 1.8
Used vehicle
retail $21,446 $21,171 1.3 (0.2)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $1,815 $1,823 (0.4) (1.7)
Used vehicle
retail sales 1,282 1,415 (9.4) (10.5)
Used vehicle
wholesale sales 86 (4) 2,250.0 2165.7
Total used 955 976 (2.2) (3.3)
Finance, insurance
and other, net
(per retail unit) $1,466 $1,420 3.2 2.5
OTHER:
SG&A expenses $612,632 $584,973 4.7 3.7
Adjusted SG&A
expenses(2) $604,393 $585,875 3.2 2.1
SG&A as % revenues 11.4 11.3
Adjusted SG&A as %
revenues (2) 11.2 11.3
SG&A as % gross
profit 75.6 74.5
Adjusted SG&A as %
gross profit (2) 74.6 74.6
Operating margin % 3.0 3.3
Adjusted operating
margin % (2) 3.3 3.3
(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.
Reconciliation of Certain Non-GAAP Financial Measures - U.S.
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended June 30,
---------------------------
2018 2017 % Increase/
(Decrease)
---------
SG&A RECONCILIATION:
As reported $234,279 $243,844 (3.9)
Pre-tax adjustments:
Catastrophic events (5,812) (643)
Gain on real estate and dealership transactions 20,119 -
Legal settlements (2,000) -
Adjusted SG&A (1) $246,586 $243,201 1.4
SG&A AS % REVENUES:
Unadjusted 10.8 11.5
Adjusted (1) 11.4 11.5
SG&A AS % GROSS PROFIT:
Unadjusted 66.8 71.6
Adjusted (1) 70.3 71.4
OPERATING MARGIN %:
Unadjusted 4.6 4.0
Adjusted (1), (2) 4.2 4.0
PRETAX MARGIN %:
Unadjusted 3.2 2.6
Adjusted (1), (2) 2.8 2.7
SAME STORE SG&A RECONCILIATION:
As reported $249,033 $242,559 2.7
Pre-tax adjustments:
Catastrophic events (5,812) (643)
Legal settlements (2,000) -
Adjusted Same Store SG&A (1) $241,221 $241,916 (0.3)
SAME STORE SG&A AS % REVENUES:
Unadjusted 11.7 11.5
Adjusted (1) 11.4 11.4
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 72.5 71.6
Adjusted (1) 70.3 71.4
SAME STORE OPERATING MARGIN %:
Unadjusted 3.7 4.0
Adjusted (1), (3) 4.2 4.0
Six Months Ended June 30,
-------------------------
2018 2017 % Increase/
(Decrease)
---------
SG&A RECONCILIATION:
As reported $487,220 $480,117 1.5
Pre-tax adjustments:
Catastrophic events (5,812) (643)
Gain on real estate and dealership transactions 20,119 -
Legal settlements (2,000) 1,833
Adjusted SG&A (1) $499,527 $481,307 3.8
SG&A AS % REVENUES:
Unadjusted 11.4 11.7
Adjusted (1) 11.7 11.8
SG&A AS % OF GROSS PROFIT:
Unadjusted 71.0 72.6
Adjusted (1) 72.8 72.8
OPERATING MARGIN %:
Unadjusted 4.0 3.8
Adjusted (1), (2) 3.8 3.8
PRETAX MARGIN %:
Unadjusted 2.6 2.5
Adjusted (1), (2) 2.4 2.5
SAME STORE SG&A RECONCILIATION:
As reported $496,645 $478,610 3.8
Pre-tax adjustments:
Catastrophic events (5,812) (643)
Legal settlements (2,000) 1,833
Adjusted Same Store SG&A (1) $488,833 $479,800 1.9
SAME STORE SG&A AS % REVENUES:
Unadjusted 11.9 11.7
Adjusted (1) 11.7 11.7
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 73.8 72.6
Adjusted (1) 72.6 72.8
SAME STORE OPERATING MARGIN %:
Unadjusted 3.5 3.9
Adjusted (1), (3) 3.8 3.8
(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 $4,268 for the three
and six months ended June 30, 2018.
(3)Excludes the impact of Same Store SG&A
reconciling items above, as well as non-cash
asset impairment charges of $4,022 for the
three and six months ended June 30, 2018.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - U.K.
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended June 30,
---------------------------
2018 2017 % Increase/
(Decrease)
---------
SG&A RECONCILIATION:
As reported $62,258 $42,456 46.6
Pre-tax adjustments:
Acquisition costs - (288)
Adjusted SG&A (1) $62,258 $42,168 47.6
SG&A AS % REVENUES:
Unadjusted 9.3 9.7
Adjusted (1) 9.3 9.6
SG&A AS % GROSS PROFIT:
Unadjusted 83.2 83.4
Adjusted (1) 83.2 82.8
OPERATING MARGIN %:
Unadjusted 1.4 1.5
Adjusted (1) 1.4 1.6
PRETAX MARGIN %:
Unadjusted 0.9 1.1
Adjusted (1) 0.9 1.2
SAME STORE SG&A RECONCILIATION:
As reported $46,319 $42,087 10.1
Pre-tax adjustments:
Acquisition costs - (288)
Adjusted Same Store SG&A (1) $46,319 $41,799 10.8
SAME STORE SG&A AS % REVENUES:
Unadjusted 9.4 9.7
Adjusted (1) 9.4 9.6
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 81.1 83.0
Adjusted (1) 81.1 82.5
SAME STORE OPERATING MARGIN %:
Unadjusted 1.7 1.6
Adjusted (1) 1.7 1.6
Six Months Ended June 30,
-------------------------
2018 2017 % Increase/
(Decrease)
---------
SG&A RECONCILIATION:
As reported $121,854 $84,080 44.9
Pre-tax adjustments:
Acquisition costs - (288)
Adjusted SG&A (1) $121,854 $83,792 45.4
SG&A AS % REVENUES:
Unadjusted 9.2 9.5
Adjusted (1) 9.2 9.4
SG&A AS % OF GROSS PROFIT:
Unadjusted 83.3 83.1
Adjusted (1) 83.3 82.8
OPERATING MARGIN %:
Unadjusted 1.4 1.5
Adjusted (1) 1.4 1.6
PRETAX MARGIN %:
Unadjusted 0.9 1.2
Adjusted (1) 0.9 1.2
SAME STORE SG&A RECONCILIATION:
As reported $93,134 $83,017 12.2
Pre-tax adjustments:
Acquisition costs - (288)
Adjusted Same Store SG&A (1) $93,134 $82,729 12.6
SAME STORE SG&A AS % REVENUES:
Unadjusted 9.3 9.4
Adjusted (1) 9.3 9.4
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 82.8 82.5
Adjusted (1) 82.8 82.2
SAME STORE OPERATING MARGIN %:
Unadjusted 1.5 1.6
Adjusted (1) 1.5 1.6
(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.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - Brazil
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended June 30,
---------------------------
2018 2017 % Increase/
(Decrease)
---------
SG&A RECONCILIATION:
As reported $11,555 $12,268 (5.8)
Pre-tax adjustments:
Legal settlements (550) -
Adjusted SG&A (1) $11,005 $12,268 (10.3)
SG&A AS % REVENUES:
Unadjusted 10.6 11.0
Adjusted (1) 10.1 11.0
SG&A AS % GROSS PROFIT:
Unadjusted 91.1 91.0
Adjusted (1) 86.7 91.0
OPERATING MARGIN %:
Unadjusted 0.6 0.8
Adjusted (1) 1.1 0.8
PRETAX MARGIN %:
Unadjusted 0.2 0.6
Adjusted (1) 0.7 0.6
SAME STORE SG&A RECONCILIATION:
As reported $11,080 $12,031 (7.9)
Pre-tax adjustments:
Legal settlements (427) -
Adjusted Same Store SG&A (1) $10,653 $12,031 (11.5)
SAME STORE SG&A AS % REVENUES:
Unadjusted 10.6 10.8
Adjusted (1) 10.2 10.8
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 90.0 89.4
Adjusted (1) 86.6 89.4
SAME STORE OPERATING MARGIN %:
Unadjusted 0.7 1.0
Adjusted (1) 1.1 1.0
Six Months Ended June 30,
-------------------------
2018 2017 % Increase/
(Decrease)
---------
SG&A RECONCILIATION:
As reported $23,365 $24,150 (3.3)
Pre-tax adjustments:
Legal settlements (550) -
Adjusted SG&A (1) $22,815 $24,150 (5.5)
SG&A AS % REVENUES:
Unadjusted 10.6 11.4
Adjusted (1) 10.4 11.4
SG&A AS % OF GROSS PROFIT:
Unadjusted 92.3 92.5
Adjusted (1) 90.1 92.5
OPERATING MARGIN %:
Unadjusted 0.5 0.6
Adjusted (1) 0.7 0.6
PRETAX MARGIN %:
Unadjusted 0.1 0.4
Adjusted (1) 0.3 0.4
SAME STORE SG&A RECONCILIATION:
As reported $22,853 $23,346 (2.1)
Pre-tax adjustments:
Legal settlements (427) -
Adjusted Same Store SG&A (1) $22,426 $23,346 (3.9)
SAME STORE SG&A AS % REVENUES:
Unadjusted 10.6 11.3
Adjusted (1) 10.4 11.3
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 91.6 91.0
Adjusted (1) 89.9 91.0
SAME STORE OPERATING MARGIN %:
Unadjusted 0.6 0.8
Adjusted (1) 0.8 0.8
(1)See the section of this release entitled
"Non-GAAP Financial Measures" for
information regarding non-GAAP financial
measures and certain selected items that the
Company believes impact comparability of
financial results between reporting periods.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - Consolidated
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended June 30,
---------------------------
2018 2017 % Increase/
(Decrease)
---------
NET INCOME RECONCILIATION:
As reported
Pretax Net Income $75,188 $61,690
Income Tax Provision (18,725) (22,557)
Net Income $56,463 $39,133 44.3
Effective Tax Rate 24.9% 36.6%
Adjustments:
Catastrophic events
Pre-tax $5,812 $643
Tax impact (1,444) (250)
Gain on real estate and dealership transactions
Pre-tax (20,119) -
Tax impact 4,917 -
Acquisition costs
Pre-tax - 288
Tax impact - -
Legal settlements
Pre-tax 2,550 -
Tax impact (568) -
Non-cash asset impairment
Pre-tax 4,268 -
Tax impact (1,089) -
Adjusted
Pretax Net Income $67,699 $62,621
Income Tax Provision (16,909) (22,807)
Adjusted net income (1) $50,790 $39,814 27.6
Effective Tax Rate 25.0% 36.42%
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION:
Adjusted net income (1) $50,790 $39,814 27.6
Less: Adjusted earnings allocated to participating securities 1,722 1,413 21.9
Adjusted net income available to diluted common shares (1) $49,068 $38,401 27.8
DILUTED (LOSS) INCOME PER COMMON SHARE RECONCILIATION:
As reported $2.72 $1.84 47.8
After-tax adjustments:
Catastrophic events 0.21 0.02
Gain on real estate and dealership transactions (0.73) -
Acquisition costs including related tax impact - 0.01
Legal settlements 0.10 -
Non-cash asset impairment 0.15 -
Adjusted diluted income per share (1) $2.45 $1.87 31.0
SG&A RECONCILIATION:
As reported $308,092 $298,568 3.2
Pre-tax adjustments:
Catastrophic events (5,812) (643)
Gain on real estate and dealership transactions 20,119 -
Acquisition costs - (288)
Legal settlements (2,550) -
Adjusted SG&A (1) $319,849 $297,637 7.5
SG&A AS % REVENUES:
Unadjusted 10.5 11.2
Adjusted (1) 10.9 11.1
SG&A AS % GROSS PROFIT:
Unadjusted 70.3 73.7
Adjusted (1) 73.0 73.5
OPERATING MARGIN %:
Unadjusted 3.7 3.5
Adjusted (1), (2) 3.5 3.5
PRETAX MARGIN %:
Unadjusted 2.6 2.3
Adjusted (1), (2) 2.3 2.3
SAME STORE SG&A RECONCILIATION:
As reported $306,432 $296,677 3.3
Pre-tax adjustments:
Catastrophic events (5,812) (643)
Acquisition costs - (288)
Legal settlements (2,427) -
Adjusted Same Store SG&A (1) $298,193 $295,746 0.8
SAME STORE SG&A AS % REVENUES:
Unadjusted 11.3 11.1
Adjusted (1) 11.0 11.1
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 74.2 73.6
Adjusted (1) 72.3 73.4
SAME STORE OPERATING MARGIN %:
Unadjusted 3.2 3.5
Adjusted (1), (3) 3.6 3.5
Six Months Ended June 30,
-------------------------
2018 2017 % Increase/
(Decrease)
---------
NET INCOME RECONCILIATION:
As reported
Pretax Net Income $121,355 $112,886
Income Tax Provision (29,078) (39,814)
Net Income $92,277 $73,072 26.3
Effective Tax Rate 24.0% 35.3%
Adjustments:
Catastrophic events
Pre-tax $5,812 $643
Tax impact (1,444) (250)
Gain on real estate and dealership transactions
Pre-tax (20,119) -
Tax impact 4,917 -
Acquisition costs
Pre-tax - 288
Tax impact - -
Legal settlements
Pre-tax 2,550 (1,833)
Tax impact (568) 696
Non-cash asset impairment
Pre-tax 4,268 -
Tax impact (1,089) -
Adjusted
Pretax Net Income $113,866 $111,984
Income Tax Provision (27,262) (39,368)
Adjusted net income (1) $86,604 $72,616 19.3
Effective Tax Rate 23.9% 35.2%
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION:
Adjusted net income (1) $86,604 $72,616 19.3
Less: Adjusted earnings allocated to participating securities 2,930 2,628 11.5
Adjusted net income available to diluted common shares (1) $83,674 $69,988 19.6
DILUTED INCOME PER COMMON SHARE RECONCILIATION:
As reported $4.42 $3.42 29.2
After-tax adjustments:
Catastrophic events 0.21 0.02
Gain on real estate and dealership transactions (0.73) -
Acquisition costs including related tax impact - 0.01
Legal settlements 0.10 (0.05)
Non-cash asset impairment 0.15 -
Adjusted diluted income per share (1) $4.15 $3.40 22.1
SG&A RECONCILIATION:
As reported $632,439 $588,347 7.5
Pre-tax adjustments:
Catastrophic events (5,812) (643)
Gain on real estate and dealership transactions 20,119 -
Acquisition costs - (288)
Legal settlements (2,550) 1,833
Adjusted SG&A (1) $644,196 $589,249 9.3
SG&A AS % REVENUES:
Unadjusted 10.9 11.3
Adjusted (1) 11.1 11.4
SG&A AS % OF GROSS PROFIT:
Unadjusted 73.7 74.6
Adjusted (1) 75.1 74.7
OPERATING MARGIN %:
Unadjusted 3.2 3.3
Adjusted (1), (2) 3.1 3.3
PRETAX MARGIN %:
Unadjusted 2.1 2.2
Adjusted (1), (2) 2.0 2.2
SAME STORE SG&A RECONCILIATION:
As reported $612,632 $584,973 4.7
Pre-tax adjustments:
Catastrophic events (5,812) (643)
Acquisition costs - (288)
Legal settlements (2,427) 1,833
Adjusted Same Store SG&A (1) $604,393 $585,875 3.2
SAME STORE SG&A AS % REVENUES:
Unadjusted 11.4 11.3
Adjusted (1) 11.2 11.3
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 75.6 74.5
Adjusted (1) 74.6 74.6
SAME STORE OPERATING MARGIN %:
Unadjusted 3.0 3.3
Adjusted (1), (3) 3.3 3.3
(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 $4,268 for the three
and six months ended June 30, 2018.
(3)Excludes the impact of Same Store SG&A
reconciling items above, as well as non-cash
asset impairment charges of $4,022 for the
three and six months ended June 30, 2018.
View original content:http://www.prnewswire.com/news-releases/group-1-automotive-announces-second-quarter-2018-financial-results-300686850.html
SOURCE Group 1 Automotive, Inc.
