Oct 25, 2018 SOURCE: PR NewsWire
Group 1 Automotive Announces Third Quarter 2018 Financial Results
HOUSTON, Oct. 25, 2018 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), ("Group 1" or the "Company"), an international, Fortune 500 automotive retailer, today reported 2018 third quarter net income of $34.8 million, diluted earnings per common share of $1.74, adjusted net income (a non-GAAP measure) of $49.2 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $2.47.
Third quarter 2018 adjusted net income and diluted earnings per share exclude approximately $14.4 million of net after-tax adjustments, or $0.73 per common share. These adjustments are more than explained by non-cash asset impairments of $17.7 million and legal settlement reserve adjustments of $1.6 million, which were partially offset by gains on real estate and dealership transactions of $4.2 million and reduced tax liabilities of $0.7 million due to the corporate income tax rate enacted by the U.S. Tax Reform Bill.
"Although our results were impacted by some unusual factors, especially in the U.K., we are pleased with our quarterly results, which established a new all-time quarterly record of $2.47 per share on an adjusted basis," said Earl J. Hesterberg, Group 1's president and chief executive officer. "Strong used vehicle results and good cost control contributed positively to the quarter. However, the severe lack of 2019 model vehicles to sell in the U.K. during a major plate change sales month was unexpected and very damaging to our business. We expect manufacturer supply to improve across the U.K. by year end."
Consolidated Results for Third 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 decreased 4.1 percent (decreased 3.1 percent) to $2.9
billion.
-- Total gross profit increased 0.9 percent (increased 1.8 percent), to
$435.1 million.
-- New vehicle revenues decreased 10.0 percent (decreased 8.9 percent) on a
9.8 percent decrease in unit sales, reflecting difficult year-over-year
comparisons as a result of very strong replacement demand from Hurricane
Harvey in the third quarter 2017 and emission testing-related supply
constraints in the UK in September 2018. New vehicle gross profit
decreased 12.1 percent (decreased 10.5 percent), to $77.6 million.
-- Retail used vehicle revenues increased 6.6 percent (7.5 percent) on 9.7
percent higher unit sales. Retail used vehicle gross profit increased
6.4 percent (7.2 percent), to $50.2 million. Total used vehicle gross
profit was up 6.2 percent (7.1 percent), to $49.8 million.
-- Parts and service gross profit increased 3.5 percent (4.2 percent) on
revenue growth of 3.3 percent (4.2 percent). Same Store parts and
service gross profit increased 1.8 percent (2.5 percent) on Same Store
parts and service revenue growth of 2.0 percent (2.9 percent).
-- Finance and Insurance (F&I) gross profit per retail unit (PRU) increased
6.4 percent (7.0 percent), to $1,429.
-- Selling, General and Administrative (SG&A) expenses as a percent of
gross profit decreased 330 basis points, to 72.8 percent. Adjusted Same
Store SG&A as a percent of gross profit increased 110 basis points, to
73.3 percent.
Segment Results for Third Quarter 2018 (year-over-year comparable basis)
-- United States:The Company's U.S. operations accounted for 76.1 percent
of total revenues and 81.0 percent of total gross profit. Total U.S.
revenues were $2.2 billion, a decrease of 4.4 percent, reflecting the
aforementioned challenging year-over-year comparisons from Hurricane
Harvey in 3Q17. New vehicle revenues decreased 7.7 percent. F&I
revenues increased 5.4 percent, parts and service revenue increased 1.9
percent, and retail used vehicle revenue increased 1.8 percent. F&I
gross profit PRU increased $122, or 7.8 percent per unit, to $1,688; and
total gross profit was about flat at $352.5 million. New vehicle retail
gross profit PRU decreased $104, to $1,787. Total used vehicle gross
profit PRU increased $18, to $1,068. SG&A expenses as a percent of gross
profit improved 530 basis points, to 68.7 percent; and operating margin
expanded 30 basis points, to 3.3 percent. Adjusted SG&A expenses as a
percent of gross profit increased 60 basis points, to 70.6 percent.
Adjusted operating margin was flat at 4.1 percent.
-- United Kingdom:The Company's U.K. operations accounted for 20.3 percent
of total revenues and 15.8 percent of total gross profit. As of
September 1, 2018, all light vehicles sold in the EU are subject to
mandatory emissions standards testing known as the Worldwide Harmonised
Light Vehicle Test Procedure ("WLTP"). This testing procedure created a
serious inventory supply delay in the release of many 2019 model year
vehicles for sale, which resulted in a 10.2 percent industry sales
decrease for the third quarter 2018 and a 20.5 percent industry decrease
in the important sales month of September. Various brands were more
impacted than others. The Company's most significantly impacted brand
was Audi, which experienced an industry sales decrease of 28.6 percent
for the third quarter 2018. This manufacturer supply issue resulted in
a Same Store new vehicle revenues decrease of 26.2 percent (decreased
25.3 percent) and Same Store new vehicle units sold decrease of 21.5
percent. On a constant currency basis, strong Same Store used sales (up
14.3 percent) and after sales growth (up 5.9 percent) were partial
offsets. The Company's total U.K. revenues decreased 0.8 percent (no
change), to $585.9 million. Consistent with the quarterly industry
decrease, Same Store U.K. revenues decreased 11.0 percent (decreased
10.1 percent), to $496.4 million. Total gross profit increased 8.1
percent (9.0 percent), to $68.7 million, while Same Store gross profit
decreased 4.3 percent (decreased 3.4 percent), to $58.0 million. SG&A
expenses as a percent of gross profit increased 290 basis points, to
86.9 percent; and operating margin decreased 30 basis points, to 1.0
percent. Same Store SG&A expenses as a percent of gross profit increased
580 basis points, to 87.7 percent; and Same Store operating margin
decreased 70 basis points, to 0.9 percent, reflecting the deleveraging
impact of the reduced new vehicle volumes.
-- Brazil:The Company's Brazilian operations accounted for 3.6 percent of
total revenues and 3.2 percent of total gross profit. The Company's
Same Store new vehicle revenue decreased 24.3 percent (decreased 5.5
percent), with units down 8.9 percent. Same store total revenues
decreased 19.4 percent (increased 0.5 percent), with the constant
currency increase driven by revenue growth of 17.2 percent in F&I, 14.3
percent in total used vehicles, and 7.6 percent in parts & service. SG&A
expenses as a percent of gross profit increased 14.6 percentage points,
to 106.8 percent. Adjusted Same Store SG&A expenses as a percent of
gross profit improved 460 basis points, to 85.1 percent
Share Repurchase Authorization
During the third quarter of 2018, the Company repurchased 789,509 shares at an average price per common share of $69.77, for a total of $55.1 million. Under SEC Rule 10b5-1, from October 1, 2018 to October 25, 2018, the Company repurchased an additional 399,872 shares at an average price per common share of $62.52, for a total of $25.0 million. Year-to-date through October 25, 2018, the Company has repurchased 1,935,738 shares at an average price per common share of $67.86, for a total of $131.4 million. These repurchases represented approximately 9.5 percent of the Company's share float at the beginning of the year and reduced the total outstanding share count to approximately 18.6 million common shares as of October 25, 2018.
On October 25, 2018, the Company's board of directors increased Group 1's common stock share repurchase authorization to $100.0 million.
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
In August 2018, the Company disposed of Ford Escondido, which generated approximately $60 million in trailing-twelve-month revenues.
Year-to-date 2018, the Company has acquired a total of 14 franchises, which are expected to generate an estimated $530 million in annual revenues; and the Company has disposed of 4 franchises that generated approximately $175 million in trailing-twelve-month revenues.
Third 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 third 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: 4290144
A telephonic replay will be available following the call through November 1, 2018 by dialing:
Domestic:
1-877-344-7529
International:
1-412-317-0088
Replay ID: 10125481
ABOUT GROUP 1 AUTOMOTIVE, INC.
Group 1 owns and operates 181 automotive dealerships, 237 franchises, and 47 collision centers in the United States, the United Kingdom and Brazil that offer 32 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service contracts; provides automotive maintenance and repair services; and sells vehicle parts.
Investors please visit www.group1corp.com, www.group1auto.com, www.group1collision.com, www.facebook.com/group1auto, and www.twitter.com/group1auto, where Group 1 discloses additional information about the Company, its business, and its results of operations.
FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements related to future, not past, events and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. In this context, the forward-looking statements often include statements regarding our goals, plans, projections and guidance regarding our financial position, results of operations, market position, pending and potential future acquisitions and business strategy, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should," "foresee," "may" or "will" and similar expressions. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Any such forward-looking statements are not assurances of future performance and involve risks and uncertainties that may cause actual results to differ materially from those set forth in the statements. These risks and uncertainties include, among other things, (a) general economic and business conditions, (b) the level of manufacturer incentives, (c) the future regulatory environment, (d) our ability to obtain an inventory of desirable new and used vehicles, (e) our relationship with our automobile manufacturers and the willingness of manufacturers to approve future acquisitions, (f) our cost of financing and the availability of credit for consumers, (g) our ability to complete acquisitions and dispositions and the risks associated therewith, (h) foreign exchange controls and currency fluctuations, and (i) our ability to retain key personnel. For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with the SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.
NON-GAAP FINANCIAL MEASURES
In addition to evaluating the financial condition and results of our operations in accordance with GAAP, from time to time our management evaluates and analyzes results and any impact on the Company of strategic decisions and actions relating to, among other things, cost reduction, growth, and profitability improvement initiatives, and other events outside of normal, or "core," business and operations, by considering alternative financial measures not prepared in accordance with GAAP. This includes evaluating measures such as adjusted selling, general and administrative expenses, adjusted net income and adjusted diluted earnings per share. These adjusted measures are not measures of financial performance under U.S. GAAP, but are instead considered non-GAAP financial performance measures. Non-GAAP measures do not have definitions under GAAP and may be defined differently by and not be comparable to similarly titled measures used by other companies. As a result, any non-GAAP financial measures considered and evaluated by management are reviewed in conjunction with a review of the most directly comparable measures calculated in accordance with GAAP. We caution investors not to place undue reliance on such non-GAAP measures, but also to consider them with the most directly comparable GAAP measures. In our evaluation of results from time to time, we exclude items that do not arise directly from core operations, such as non-cash asset impairment charges, gains and losses on dealership franchise or real estate transactions, and catastrophic weather events such as hail storms, hurricanes, and snow storms. Because these non-core charges and gains materially affect the Company's financial condition or results in the specific period in which they are recognized, management also evaluates, and makes resource allocation and performance evaluation decisions based on, the related non-GAAP measures excluding such items.
In addition to using such non-GAAP measures to evaluate results in a specific period, management believes that such measures may provide more complete and consistent comparisons of operational performance on a period-over-period historical basis and a better indication of expected future trends. Our management also uses these adjusted measures in conjunction with U.S. GAAP financial measures to assess our business, including communication with our Board of Directors, investors and industry analysts concerning financial performance. We disclose these non-GAAP measures, and the related reconciliations, because we believe investors use these metrics in evaluating longer-term period-over-period performance, and to allow investors to better understand and evaluate the information used by management to assess operating performance. The exclusion of certain expenses in the calculation of non-GAAP financial measures should not be construed as an inference that these costs are unusual or infrequent. We anticipate excluding these expenses in the future presentation of our non-GAAP financial measures.
In addition, we evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our underlying business and results of operations, consistent with how we evaluate our performance. We calculate constant currency percentages by converting our current period reported results for entities reporting in currencies other than United States dollars using comparative period exchange rates rather than the actual exchange rates in effect during the respective periods. The constant currency performance measures should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with U.S. GAAP.
Investor contacts:
Sheila Roth
Manager, Investor Relations
Group 1 Automotive, Inc.
713-647-5741 | sroth@group1auto.com
Media contacts:
Pete DeLongchamps
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 September 30,
2018 2017 % Increase/
(Decrease)
---
REVENUES:
New vehicle retail sales $1,539,498 $1,710,241 (10.0)
Used vehicle retail sales 792,405 743,038 6.6
Used vehicle wholesale sales 86,570 104,827 (17.4)
Parts and service 354,501 343,193 3.3
Finance, insurance and other,
net 116,084 110,993 4.6
Total revenues 2,889,058 3,012,292 (4.1)
COST OF SALES:
New vehicle retail sales 1,461,896 1,621,909 (9.9)
Used vehicle retail sales 742,250 695,915 6.7
Used vehicle wholesale sales 86,884 105,012 (17.3)
Parts and service 162,927 158,036 3.1
Total cost of sales 2,453,957 2,580,872 (4.9)
GROSS PROFIT 435,101 431,420 0.9
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 316,771 328,327 (3.5)
DEPRECIATION AND AMORTIZATION
EXPENSE 16,981 15,059 12.8
ASSET IMPAIRMENTS 23,159 9,526 143.1
OPERATING INCOME 78,190 78,508 (0.4)
OTHER EXPENSE:
Floorplan interest expense (14,685) (13,491) 8.9
Other interest expense, net (19,140) (17,874) 7.1
INCOME BEFORE INCOME TAXES 44,365 47,143 (5.9)
PROVISION FOR INCOME TAXES (9,587) (17,262) (44.5)
NET INCOME $34,778 $29,881 16.4
Less: Earnings allocated to
participating securities $1,181 $1,023 15.4
Earnings available to diluted
common shares $33,597 $28,858 16.4
DILUTED EARNINGS PER SHARE $1.74 $1.43 21.7
Weighted average dilutive
common shares outstanding 19,261 20,225 (4.8)
Weighted average participating
securities 684 724 (5.5)
Total weighted average shares
outstanding 19,945 20,949 (4.8)
Nine Months Ended September 30,
2018 2017 % Increase/
(Decrease)
---
REVENUES:
New vehicle retail sales $4,608,658 $4,496,222 2.5
Used vehicle retail sales 2,394,828 2,089,914 14.6
Used vehicle wholesale sales 283,453 308,361 (8.1)
Parts and service 1,062,145 994,522 6.8
Finance, insurance and other,
net 343,462 314,297 9.3
Total revenues 8,692,546 8,203,316 6.0
COST OF SALES:
New vehicle retail sales 4,379,047 4,263,752 2.7
Used vehicle retail sales 2,249,964 1,952,873 15.2
Used vehicle wholesale sales 281,871 308,713 (8.7)
Parts and service 488,637 458,144 6.7
Total cost of sales 7,399,519 6,983,482 6.0
GROSS PROFIT 1,293,027 1,219,834 6.0
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 949,210 916,674 3.5
DEPRECIATION AND AMORTIZATION
EXPENSE 49,961 42,758 16.8
ASSET IMPAIRMENTS 27,427 9,526 187.9
OPERATING INCOME 266,429 250,876 6.2
OTHER EXPENSE:
Floorplan interest expense (43,335) (38,659) 12.1
Other interest expense, net (57,374) (52,188) 9.9
INCOME BEFORE INCOME TAXES 165,720 160,029 3.6
PROVISION FOR INCOME TAXES (38,666) (57,076) (32.3)
NET INCOME $127,054 $102,953 23.4
Less: Earnings allocated to
participating securities $4,306 $3,659 17.7
Earnings available to diluted
common shares $122,748 $99,294 23.6
DILUTED EARNINGS PER SHARE $6.18 $4.85 27.4
Weighted average dilutive
common shares outstanding 19,868 20,480 (3.0)
Weighted average participating
securities 702 767 (8.5)
Total weighted average shares
outstanding 20,570 21,247 (3.2)
Group 1 Automotive, Inc.
Consolidated Balance Sheets
(Dollars in thousands)
September 30,
December 31, % Increase/
2018 2017 (Decrease)
---
ASSETS:
(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $32,027 $28,787 11.3
Contracts in transit and
vehicle receivables, net 235,609 306,433 (23.1)
Accounts and notes receivable,
net 169,318 188,611 (10.2)
Inventories, net 1,733,756 1,763,293 (1.7)
Prepaid expenses and other
current assets 77,996 42,062 85.4
Total current assets 2,248,706 2,329,186 (3.5)
PROPERTY AND EQUIPMENT, net 1,350,929 1,318,959 2.4
GOODWILL AND INTANGIBLE
FRANCHISE RIGHTS 1,245,056 1,198,666 3.9
OTHER ASSETS 36,175 24,254 49.2
Total assets $4,880,866 $4,871,065 0.2
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES:
Floorplan notes payable -
credit facility and other $1,155,034 $1,240,695 (6.9)
Offset account related to
floorplan notes payable -
credit facility (71,397) (86,547) (17.5)
Floorplan notes payable -
manufacturer affiliates 415,615 397,183 4.6
Offset account related to
floorplan notes payable -
manufacturer affiliates (20,500) (22,500) (8.9)
Current maturities of long-
term debt and short-term
financing 76,080 77,609 (2.0)
Current liabilities from
interest rate risk management
activities 311 1,996 (84.4)
Accounts payable 428,441 412,981 3.7
Accrued expenses 207,082 177,070 16.9
Total current liabilities 2,190,666 2,198,487 (0.4)
5.00% SENIOR NOTES (principal
of $550,000 at September 30,
2018 and December 31, 2017,
respectively) 543,306 542,063 0.2
5.25% SENIOR NOTES (principal
of $300,000 at September 30,
2018 and December 31, 2017,
respectively) 296,587 296,151 0.1
ACQUISITION LINE 32,584 26,988 20.7
REAL ESTATE RELATED AND OTHER
LONG-TERM DEBT, net of
current maturities 384,541 405,950 (5.3)
CAPITAL LEASE OBLIGATIONS
RELATED TO REAL ESTATE, net of
current maturities 47,109 47,032 0.2
DEFERRED INCOME TAXES 137,826 124,404 10.8
LIABILITIES FROM INTEREST RATE
RISK MANAGEMENT ACTIVITIES 444 8,583 (94.8)
OTHER LIABILITIES 99,457 97,125 2.4
STOCKHOLDERS' EQUITY:
Common stock 255 255 -
Additional paid-in capital 290,666 291,461 (0.3)
Retained earnings 1,368,948 1,246,323 9.8
Accumulated other comprehensive
loss (128,894) (123,226) 4.6
Treasury stock (382,629) (290,531) 31.7
Total stockholders' equity $1,148,346 $1,124,282 2.1
Total liabilities and
stockholders' equity $4,880,866 $4,871,065 0.2
Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2018 (%) 2017 (%) 2018 (%) 2017 (%)
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
Region Geographic Market
---
United States
Texas 37.2 37.8 35.8 36.5
Oklahoma 6.7 5.7 6.2 6.2
California 5.8 7.0 6.2 7.6
Massachusetts 5.2 4.8 4.9 4.7
Georgia 4.7 4.4 4.5 4.6
Florida 2.9 2.4 2.6 2.5
Louisiana 2.2 1.9 2.0 2.0
New Hampshire 2.0 1.9 1.9 2.0
South Carolina 1.6 1.3 1.6 1.3
New Jersey 1.5 1.7 1.6 1.7
Kansas 1.4 1.5 1.4 1.6
Mississippi 1.2 1.2 1.2 1.3
Alabama 0.7 0.9 0.7 1.0
Maryland 0.4 0.3 0.4 0.4
New Mexico 0.1 0.1 0.1
73.6 72.9 71.1 73.4
International
United Kingdom 21.4 22.6 23.9 21.8
Brazil 5.0 4.5 5.0 4.8
100.0 100.0 100.0 100.0
NEW VEHICLE UNIT SALES BRAND MIX:
---
Toyota/Lexus 27.1 26.7 25.0 25.3
Volkswagen/Audi/Porsche 11.8 13.9 13.0 13.0
BMW/MINI 11.5 11.5 12.1 12.8
Ford/Lincoln 11.0 10.6 11.1 11.5
Honda/Acura 9.5 9.0 9.3 9.2
Nissan 6.8 7.0 6.5 7.5
Chevrolet/GMC/Buick/Cadillac 5.6 6.1 5.7 6.2
Mercedes-Benz/smart/Sprinter 4.2 3.4 4.7 3.8
Chrysler/Dodge/Jeep/RAM 3.9 3.9 4.0 3.9
Hyundai/Kia 4.0 4.2 3.9 4.0
Jaguar/Land Rover 1.7 1.6 1.8 0.8
Other 2.9 2.1 2.9 2.0
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 September 30,
2018 2017 % Increase/
(Decrease)
---
REVENUES:
New vehicle retail
sales $1,196,551 $1,296,267 (7.7)
Used vehicle retail
sales 572,011 562,031 1.8
Used vehicle
wholesale sales 40,724 63,363 (35.7)
Total used 612,735 625,394 (2.0)
Parts and service 289,334 283,915 1.9
Finance, insurance
and other, net 101,610 96,383 5.4
Total $2,200,230 $2,301,959 (4.4)
GROSS MARGIN %:
New vehicle retail
sales 4.8 5.1
Used vehicle retail
sales 6.5 6.8
Used vehicle
wholesale sales 1.0 (0.1)
Total used 6.1 6.1
Parts and service 53.9 53.8
Finance, insurance
and other, net 100.0 100.0
Total 16.0 15.4
GROSS PROFIT:
New vehicle retail
sales $57,278 $66,622 (14.0)
Used vehicle retail
sales 37,241 37,962 (1.9)
Used vehicle
wholesale sales 400 (54) 840.7
Total used 37,641 37,908 (0.7)
Parts and service 155,942 152,654 2.2
Finance, insurance
and other, net 101,610 96,383 5.4
Total $352,471 $353,567 (0.3)
UNITS SOLD:
Retail new vehicles
sold 32,058 35,233 (9.0)
Retail used vehicles
sold 28,125 26,304 6.9
Wholesale used
vehicles sold 7,118 9,786 (27.3)
Total used 35,243 36,090 (2.3)
AVERAGE RETAIL SALES PRICE:
New vehicle retail $37,325 $36,791 1.5
Used vehicle retail $20,338 $21,367 (4.8)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $1,787 $1,891 (5.5)
Used vehicle retail
sales 1,324 1,443 (8.2)
Used vehicle
wholesale sales 56 (6) 1,033.3
Total used 1,068 1,050 1.7
Finance, insurance
and other, net (per
retail unit) $1,688 $1,566 7.8
OTHER:
Adjusted Finance,
insurance and other
revenue, net (1)(2) $101,610 $102,933 (1.3)
Adjusted Total
Revenue (1) $2,200,230 $2,308,509 (4.7)
Adjusted Total Gross
Profit (1) $352,471 $360,117 (2.1)
Adjusted Total Gross
Margin(1) 16.0 15.6
Adjusted Finance,
insurance and
other, net (per
retail unit)(1) $1,688 $1,673 0.9
SG&A expenses $242,210 $261,787 (7.5)
Adjusted SG&A
expenses(1) $249,000 $252,120 (1.2)
SG&A as % revenues 11.0 11.4
Adjusted SG&A as %
revenues (1) 11.3 11.0
SG&A as % gross
profit 68.7 74.0
Adjusted SG&A as %
gross profit (1) 70.6 70.0
Operating margin % 3.3 3.0
Adjusted operating
margin % (1) 4.1 4.1
Pretax margin % 2.0 1.8
Adjusted pretax
margin %(1) 2.7 2.9
INTEREST EXPENSE:
Floorplan interest
expense $(12,904) $(12,014) 7.4
Floorplan assistance 11,736 13,295 (11.7)
Net floorplan
expense $(1,168) $1,281 (191.2)
Other interest
expense, net $(17,273) $(16,727) 3.3
Nine Months Ended September 30,
2018 2017 % Increase/
(Decrease)
---
REVENUES:
New vehicle retail
sales $3,433,386 $3,458,287 (0.7)
Used vehicle retail
sales 1,727,848 1,620,171 6.6
Used vehicle
wholesale sales 137,507 200,384 (31.4)
Total used 1,865,355 1,820,555 2.5
Parts and service 862,737 837,772 3.0
Finance, insurance
and other, net 295,239 276,754 6.7
Total $6,456,717 $6,393,368 1.0
GROSS MARGIN %:
New vehicle retail
sales 4.9 5.1
Used vehicle retail
sales 6.3 6.9
Used vehicle
wholesale sales 2.5 (0.1)
Total used 6.1 6.2
Parts and service 53.8 53.8
Finance, insurance
and other, net 100.0 100.0
Total 16.1 15.9
GROSS PROFIT:
New vehicle retail
sales $166,771 $174,831 (4.6)
Used vehicle retail
sales 109,535 112,598 (2.7)
Used vehicle
wholesale sales 3,387 (170) 2,092.4
Total used 112,922 112,428 0.4
Parts and service 463,894 450,623 2.9
Finance, insurance
and other, net 295,239 276,754 6.7
Total $1,038,826 $1,014,636 2.4
UNITS SOLD:
Retail new vehicles
sold 91,119 93,533 (2.6)
Retail used vehicles
sold 83,919 76,435 9.8
Wholesale used
vehicles sold 23,793 29,468 (19.3)
Total used 107,712 105,903 1.7
AVERAGE RETAIL SALES PRICE:
New vehicle retail $37,680 $36,974 1.9
Used vehicle retail $20,589 $21,197 (2.9)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $1,830 $1,869 (2.1)
Used vehicle retail
sales 1,305 1,473 (11.4)
Used vehicle
wholesale sales 142 (6) 2,466.7
Total used 1,048 1,062 (1.3)
Finance, insurance
and other, net (per
retail unit) $1,687 $1,628 3.6
OTHER:
Adjusted Finance,
insurance and other
revenue, net (1)(2) $295,239 $283,304 4.2
Adjusted Total
Revenue (1) $6,456,717 $6,399,918 0.9
Adjusted Total Gross
Profit (1) $1,038,826 $1,021,186 1.7
Adjusted Total Gross
Margin (1) 16.1 16.0
Adjusted Finance,
insurance and
other, net (per
retail unit) (1) $1,687 $1,667 1.2
SG&A expenses $729,430 $741,904 (1.7)
Adjusted SG&A
expenses (1) $748,527 $733,427 2.1
SG&A as % revenues 11.3 11.6
Adjusted SG&A as %
revenues (1) 11.6 11.5
SG&A as % gross
profit 70.2 73.1
Adjusted SG&A as %
gross profit (1) 72.1 71.8
Operating margin % 3.8 3.6
Adjusted operating
margin % (1) 3.9 3.9
Pretax margin % 2.4 2.2
Adjusted pretax
margin % (1) 2.5 2.6
INTEREST EXPENSE:
Floorplan interest
expense $(38,050) $(34,954) 8.9
Floorplan assistance $33,692 $35,031 (3.8)
Net floorplan
expense $(4,358) $77 (5,759.7)
Other interest
expense, net $(51,621) $(49,571) 4.1
(1)See the section of this
release entitled "Non-GAAP
Financial Measures" and the
tables attached hereto for
information regarding certain
selected items that the Company
believes impact comparability of
financial results between
reporting periods, as well as
for information regarding non-
GAAP financial measures and
their reconciliation to the most
directly comparable measures as
reported in accordance with U.S.
GAAP.
(2)Finance, insurance and other
revenue represents fees earned
for the financing of vehicle
sales transactions and from the
sale of insurance and vehicle
service contracts. Such amounts
are reported net of estimated
amounts to be charged in the
future. As a result, finance,
insurance and other revenue and
gross profit are the same.
Group 1 Automotive, Inc.
Additional Information - U.K.
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended September 30,
2018 2017 % Increase/
Constant Currency (1)
(Decrease) % Increase/ (Decrease)
---
REVENUES:
New vehicle retail
sales $278,046 $334,772 (16.9) (16.1)
Used vehicle
retail sales 200,058 158,076 26.6 27.2
Used vehicle
wholesale sales 41,696 38,647 7.9 8.5
Total used 241,754 196,723 22.9 23.6
Parts and service 53,817 46,783 15.0 15.6
Finance, insurance
and other, net 12,319 12,448 (1.0) (0.2)
Total $585,936 $590,726 (0.8) 0.0
GROSS MARGIN %:
New vehicle retail
sales 5.4 5.1
Used vehicle
retail sales 5.8 4.7
Used vehicle
wholesale sales (2.1) (0.9)
Total used 4.4 3.6
Parts and service 56.7 57.3
Finance, insurance
and other, net 100.0 100.0
Total 11.7 10.8
GROSS PROFIT:
New vehicle retail
sales $15,128 $17,205 (12.1) (10.8)
Used vehicle
retail sales 11,625 7,471 55.6 56.6
Used vehicle
wholesale sales (880) (347) (153.6) (148.1)
Total used 10,745 7,124 50.8 52.1
Parts and service 30,530 26,823 13.8 14.4
Finance, insurance
and other, net 12,319 12,448 (1.0) (0.2)
Total $68,722 $63,600 8.1 9.0
UNITS SOLD:
Retail new
vehicles sold 9,333 10,909 (14.4)
Retail used
vehicles sold 8,482 7,011 21.0
Wholesale used
vehicles sold 5,382 4,939 9.0
Total used 13,864 11,950 16.0
AVERAGE RETAIL SALES PRICE:
New vehicle retail $29,792 $30,688 (2.9) (1.9)
Used vehicle
retail $23,586 $22,547 4.6 5.2
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $1,621 $1,577 2.8 4.2
Used vehicle
retail sales 1,371 1,066 28.6 29.4
Used vehicle
wholesale sales (164) (70) (134.3) (127.7)
Total used 775 596 30.0 31.1
Finance, insurance
and other, net
(per retail unit) $691 $695 (0.6) 0.4
OTHER:
SG&A expenses $59,704 $53,395 11.8 12.4
SG&A as % revenues 10.2 9.0
SG&A as % gross
profit 86.9 84.0
Operating margin % 1.0 1.3
Pretax margin % 0.5 0.9
INTEREST EXPENSE:
Floorplan interest
expense $(1,556) $(1,336) 16.5 17.3
Floorplan
assistance 299 265 12.8 13.6
Net floorplan
expense $(1,257) $(1,071) 17.4 18.3
Other interest
expense, net $(1,693) $(1,121) 51.0 52.0
Nine Months Ended September 30,
2018 2017 % Increase/
Constant Currency (1)
(Decrease) % Increase/ (Decrease)
---
REVENUES:
New vehicle retail
sales $971,085 $824,827 17.7 11.3
Used vehicle
retail sales 600,715 401,851 49.5 41.6
Used vehicle
wholesale sales 134,408 99,604 34.9 27.5
Total used 735,123 501,455 46.6 38.8
Parts and service 164,954 120,614 36.8 29.4
Finance, insurance
and other, net 42,199 31,260 35.0 27.9
Total $1,913,361 $1,478,156 29.4 22.4
GROSS MARGIN %:
New vehicle retail
sales 5.1 5.5
Used vehicle
retail sales 5.2 4.9
Used vehicle
wholesale sales (1.6) (0.9)
Total used 4.0 3.7
Parts and service 57.1 57.6
Finance, insurance
and other, net 100.0 100.0
Total 11.2 11.2
GROSS PROFIT:
New vehicle retail
sales $49,546 $45,350 9.3 3.5
Used vehicle
retail sales 31,288 19,579 59.8 51.4
Used vehicle
wholesale sales (2,188) (851) (157.1) (149.7)
Total used 29,100 18,728 55.4 47.0
Parts and service 94,132 69,488 35.5 28.2
Finance, insurance
and other, net 42,199 31,260 35.0 27.9
Total $214,977 $164,826 30.4 23.5
UNITS SOLD:
Retail new
vehicles sold 30,697 27,821 10.3
Retail used
vehicles sold 24,818 18,435 34.6
Wholesale used
vehicles sold 16,924 13,245 27.8
Total used 41,742 31,680 31.8
AVERAGE RETAIL SALES PRICE:
New vehicle retail $31,635 $29,648 6.7 0.8
Used vehicle
retail $24,205 $21,798 11.0 5.2
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $1,614 $1,630 (1.0) (6.2)
Used vehicle
retail sales 1,261 1,062 18.7 12.5
Used vehicle
wholesale sales (129) (64) (101.6) (95.4)
Total used 697 591 17.9 11.5
Finance, insurance
and other, net
(per retail unit) $760 $676 12.4 6.5
OTHER:
SG&A expenses $181,558 $137,475 32.1 24.9
Adjusted SG&A
expenses(1) $181,558 $137,187 32.3 25.2
SG&A as % revenues 9.5 9.3
Adjusted SG&A as %
revenues (1) 9.5 9.3
SG&A as % gross
profit 84.5 83.4
Adjusted SG&A as %
gross profit (1) 84.5 83.2
Operating margin % 1.3 1.5
Adjusted operating
margin % (1) 1.3 1.5
Pretax margin % 0.8 1.1
Adjusted pretax
margin % (1) 0.8 1.1
INTEREST EXPENSE:
Floorplan interest
expense $(4,687) $(3,423) 36.9 29.7
Floorplan
assistance 824 714 15.4 9.3
Net floorplan
expense $(3,863) $(2,709) 42.6 35.1
Other interest
expense, net $(5,015) $(2,386) 110.2 99.7
(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 - Brazil
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended September 30,
2018 2017 % Increase/
Constant Currency (1)
(Decrease) % Increase/ (Decrease)
---
REVENUES:
New vehicle retail
sales $64,901 $79,202 (18.1) 2.3
Used vehicle
retail sales 20,336 22,931 (11.3) 10.3
Used vehicle
wholesale sales 4,150 2,817 47.3 84.7
Total used 24,486 25,748 (4.9) 18.4
Parts and service 11,350 12,495 (9.2) 13.1
Finance, insurance
and other, net 2,155 2,162 (0.3) 24.5
Total $102,892 $119,607 (14.0) 7.3
GROSS MARGIN %:
New vehicle retail
sales 8.0 5.7
Used vehicle
retail sales 6.3 7.4
Used vehicle
wholesale sales 4.0 7.7
Total used 5.9 7.4
Parts and service 45.0 45.5
Finance, insurance
and other, net 100.0 100.0
Total 13.5 11.9
GROSS PROFIT:
New vehicle retail
sales $5,196 $4,505 15.3 43.8
Used vehicle
retail sales 1,289 1,690 (23.7) (5.5)
Used vehicle
wholesale sales 166 216 (23.1) (3.6)
Total used 1,455 1,906 (23.7) (5.2)
Parts and service 5,102 5,680 (10.2) 11.9
Finance, insurance
and other, net 2,155 2,162 (0.3) 24.5
Total $13,908 $14,253 (2.4) 21.6
UNITS SOLD:
Retail new
vehicles sold 2,193 2,179 0.6
Retail used
vehicles sold 1,069 1,034 3.4
Wholesale used
vehicles sold 402 242 66.1
Total used 1,471 1,276 15.3
AVERAGE RETAIL SALES PRICE:
New vehicle retail $29,595 $36,348 (18.6) 1.6
Used vehicle
retail $19,023 $22,177 (14.2) 6.7
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $2,369 $2,067 14.6 42.8
Used vehicle
retail sales 1,206 1,634 (26.2) (8.5)
Used vehicle
wholesale sales 413 893 (53.8) (42.0)
Total used 989 1,494 (33.8) (17.8)
Finance, insurance
and other, net
(per retail unit) $661 $673 (1.8) 22.6
OTHER:
SG&A expenses $14,857 $13,145 13.0 42.2
Adjusted SG&A
expenses(1) $11,737 $13,145 (10.7) 11.4
SG&A as % revenues 14.4 11.0
Adjusted SG&A as %
revenues (1) 11.4 11.0
SG&A as % gross
profit 106.8 92.2
Adjusted SG&A as %
gross profit (1) 84.4 92.2
Operating margin % (1.3) 0.6
Adjusted operating
margin % (1) 1.8 0.6
Pretax margin % (1.7) 0.5
Adjusted pretax
margin % (1) 1.4 0.5
INTEREST EXPENSE:
Floorplan interest
expense $(225) $(141) 59.6 99.7
Floorplan
assistance -
Net floorplan
expense $(225) $(141) 59.6 99.7
Other interest
expense, net $(174) $(26) 569.2 697.6
Nine Months Ended September 30,
2018 2017 % Increase/
Constant Currency (1)
(Decrease) % Increase/ (Decrease)
---
REVENUES:
New vehicle retail
sales $204,187 $213,108 (4.2) 8.3
Used vehicle
retail sales 66,265 67,892 (2.4) 9.8
Used vehicle
wholesale sales 11,538 8,373 37.8 57.8
Total used 77,803 76,265 2.0 15.1
Parts and service 34,454 36,136 (4.7) 7.8
Finance, insurance
and other, net 6,024 6,283 (4.1) 9.2
Total $322,468 $331,792 (2.8) 9.8
GROSS MARGIN %:
New vehicle retail
sales 6.5 5.8
Used vehicle
retail sales 6.1 7.2
Used vehicle
wholesale sales 3.3 8.0
Total used 5.7 7.3
Parts and service 44.9 45.0
Finance, insurance
and other, net 100.0 100.0
Total 12.2 12.2
GROSS PROFIT:
New vehicle retail
sales $13,294 $12,289 8.2 23.7
Used vehicle
retail sales 4,041 4,864 (16.9) (6.4)
Used vehicle
wholesale sales 383 669 (42.8) (35.5)
Total used 4,424 5,533 (20.0) (10.0)
Parts and service 15,482 16,267 (4.8) 7.5
Finance, insurance
and other, net 6,024 6,283 (4.1) 9.2
Total $39,224 $40,372 (2.8) 10.3
UNITS SOLD:
Retail new
vehicles sold 6,429 6,133 4.8
Retail used
vehicles sold 3,163 3,048 3.8
Wholesale used
vehicles sold 1,081 858 26.0
Total used 4,244 3,906 8.7
AVERAGE RETAIL SALES PRICE:
New vehicle retail $31,760 $34,748 (8.6) 3.3
Used vehicle
retail $20,950 $22,274 (5.9) 5.8
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $2,068 $2,004 3.2 18.0
Used vehicle
retail sales 1,278 1,596 (19.9) (9.8)
Used vehicle
wholesale sales 354 780 (54.6) (48.8)
Total used 1,042 1,417 (26.5) (17.1)
Finance, insurance
and other, net
(per retail unit) $628 $684 (8.2) 4.5
OTHER:
SG&A expenses $38,222 $37,295 2.5 17.4
Adjusted SG&A
expenses(1) $34,552 $37,295 (7.4) 4.9
SG&A as % revenues 11.9 11.2
Adjusted SG&A as %
revenues (1) 10.7 11.2
SG&A as % gross
profit 97.4 92.4
Adjusted SG&A as %
gross profit (1) 88.1 92.4
Operating margin % (0.1) 0.6
Adjusted operating
margin % (1) 1.1 0.6
Pretax margin % (0.5) 0.4
Adjusted pretax
margin % (1) 0.7 0.4
INTEREST EXPENSE:
Floorplan interest
expense $(598) $(282) 112.1 139.1
Floorplan
assistance -
Net floorplan
expense $(598) $(282) 112.1 139.1
Other interest
expense, net $(738) $(231) 219.5 252.3
(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 - Consolidated
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended September 30,
2018 2017 % Increase/
Constant Currency % (1)
(Decrease) Increase/ (Decrease)
---
REVENUES:
New vehicle retail
sales $1,539,498 $1,710,241 (10.0) (8.9)
Used vehicle retail
sales 792,405 743,038 6.6 7.5
Used vehicle
wholesale sales 86,570 104,827 (17.4) (16.2)
Total used 878,975 847,865 3.7 4.5
Parts and service 354,501 343,193 3.3 4.2
Finance, insurance
and other, net 116,084 110,993 4.6 5.2
Total $2,889,058 $3,012,292 (4.1) (3.1)
GROSS MARGIN %:
New vehicle retail
sales 5.0 5.2
Used vehicle retail
sales 6.3 6.3
Used vehicle
wholesale sales (0.4) (0.2)
Total used 5.7 5.5
Parts and service 54.0 54.0
Finance, insurance
and other, net 100.0 100.0
Total 15.1 14.3
GROSS PROFIT:
New vehicle retail
sales $77,602 $88,332 (12.1) (10.5)
Used vehicle retail
sales 50,155 47,123 6.4 7.2
Used vehicle
wholesale sales (314) (185) (69.7) (36.3)
Total used 49,841 46,938 6.2 7.1
Parts and service 191,574 185,157 3.5 4.2
Finance, insurance
and other, net 116,084 110,993 4.6 5.2
Total $435,101 $431,420 0.9 1.8
UNITS SOLD:
Retail new vehicles
sold 43,584 48,321 (9.8)
Retail used vehicles
sold 37,676 34,349 9.7
Wholesale used
vehicles sold 12,902 14,967 (13.8)
Total used 50,578 49,316 2.6
AVERAGE RETAIL SALES PRICE:
New vehicle retail $35,323 $35,393 (0.2) 1.0
Used vehicle retail $21,032 $21,632 (2.8) (2.0)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $1,781 $1,828 (2.6) (0.7)
Used vehicle retail
sales 1,331 1,372 (3.0) (2.2)
Used vehicle
wholesale sales (24) (12) (100.0) (58.2)
Total used 985 952 3.5 4.5
Finance, insurance
and other, net (per
retail unit) $1,429 $1,343 6.4 7.0
OTHER:
Adjusted Finance,
insurance and other
revenue, net (1)(2) $116,084 $117,543 (1.2) (0.7)
Adjusted Total
Revenue (1) $2,889,058 $3,018,842 (4.3) (3.3)
Adjusted Total Gross
Profit (1) $435,101 $437,970 (0.7) 0.3
Adjusted Total Gross
Margin(1) 15.1 14.5
Adjusted Finance,
insurance and
other, net (per
retail unit) (1) $1,429 $1,422 0.5 1.0
SG&A expenses $316,771 $328,327 (3.5) (2.3)
Adjusted SG&A
expenses (1) $320,441 $318,660 0.6 1.6
SG&A as % revenues 11.0 10.9
Adjusted SG&A as %
revenues (1) 11.1 10.6
SG&A as % gross
profit 72.8 76.1
Adjusted SG&A as %
gross profit (1) 73.6 72.8
Operating margin % 2.7 2.6
Adjusted operating
margin % (1) 3.4 3.5
Pretax margin % 1.5 1.6
Adjusted pretax
margin %(1) 2.2 2.4
INTEREST EXPENSE:
Floorplan interest
expense $(14,685.0) $(13,491) 8.9 9.4
Floorplan assistance $12,034 $13,561 (11.3) (11.2)
Net floorplan
expense $(2,651.0) $70 (3,887.1) (4,015.3)
Other interest
expense, net $(19,140.0) $(17,874) 7.1 7.4
Nine Months Ended September 30,
2018 2017 % Increase/
Constant Currency % (1)
(Decrease) Increase/ (Decrease)
---
REVENUES:
New vehicle retail
sales $4,608,658 $4,496,222 2.5 1.9
Used vehicle retail
sales 2,394,828 2,089,914 14.6 13.5
Used vehicle
wholesale sales 283,453 308,361 (8.1) (9.9)
Total used 2,678,281 2,398,275 11.7 10.5
Parts and service 1,062,145 994,522 6.8 6.4
Finance, insurance
and other, net 343,462 314,297 9.3 8.8
Total $8,692,546 $8,203,316 6.0 5.2
GROSS MARGIN %:
New vehicle retail
sales 5.0 5.2
Used vehicle retail
sales 6.0 6.6
Used vehicle
wholesale sales 0.6 (0.1)
Total used 5.5 5.7
Parts and service 54.0 53.9
Finance, insurance
and other, net 100.0 100.0
Total 14.9 14.9
GROSS PROFIT:
New vehicle retail
sales $229,611 $232,470 (1.2) (1.5)
Used vehicle retail
sales 144,864 137,041 5.7 4.9
Used vehicle
wholesale sales 1,582 (352) 549.4 581.5
Total used 146,446 136,689 7.1 6.4
Parts and service 573,508 536,378 6.9 6.4
Finance, insurance
and other, net 343,462 314,297 9.3 8.8
Total $1,293,027 $1,219,834 6.0 5.5
UNITS SOLD:
Retail new vehicles
sold 128,245 127,487 0.6
Retail used vehicles
sold 111,900 97,918 14.3
Wholesale used
vehicles sold 41,798 43,571 (4.1)
Total used 153,698 141,489 8.6
AVERAGE RETAIL SALES PRICE:
New vehicle retail $35,936 $35,268 1.9 1.3
Used vehicle retail $21,402 $21,344 0.3 (0.7)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $1,790 $1,823 (1.8) (2.1)
Used vehicle retail
sales 1,295 1,400 (7.5) (8.2)
Used vehicle
wholesale sales 38 (8) 575.0 601.9
Total used 953 966 (1.3) (2.1)
Finance, insurance
and other, net (per
retail unit) $1,430 $1,394 2.6 2.2
OTHER:
Adjusted Finance,
insurance and other
revenue, net (1)(2) $343,462 $320,847 7.0 6.6
Adjusted Total
Revenue (1) $8,692,546 $8,209,866 5.9 5.1
Adjusted Total Gross
Profit(1) $1,293,027 $1,226,384 5.4 4.9
Adjusted Total Gross
Margin(1) 14.9 14.9
Adjusted Finance,
insurance and
other, net (per
retail unit) (1) $1,430 $1,423 0.5 0.1
SG&A expenses $949,210 $916,674 3.5 3.1
Adjusted SG&A
expenses(1) $964,637 $907,909 6.2 5.7
SG&A as % revenues 10.9 11.2
Adjusted SG&A as %
revenues (1) 11.1 11.1
SG&A as % gross
profit 73.4 75.1
Adjusted SG&A as %
gross profit (1) 74.6 74.0
Operating margin % 3.1 3.1
Adjusted operating
margin % (1) 3.2 3.4
Pretax margin % 1.9 2.0
Adjusted pretax
margin % (1) 2.0 2.3
INTEREST EXPENSE:
Floorplan interest
expense $(43,335) $(38,659) 12.1 11.7
Floorplan assistance $34,516 $35,745 (3.4) (3.6)
Net floorplan
expense $(8,819) $(2,914) 202.6 198.3
Other interest
expense, net $(57,374) $(52,188) 9.9 9.6
(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.
(2)Finance, insurance and other
revenue represents fees earned
for the financing of vehicle
sales transactions and from the
sale of insurance and vehicle
service contracts. Such amounts
are reported net of estimated
amounts to be charged in the
future. As a result, finance,
insurance and other revenue and
gross profit are the same.
Group 1 Automotive, Inc.
Additional Information - Same Store U.S. (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended September 30,
2018 2017 % Increase/
(Decrease)
---
REVENUES:
New vehicle retail
sales $1,168,356 $1,277,933 (8.6)
Used vehicle
retail sales 556,910 552,925 0.7
Used vehicle
wholesale sales 39,451 61,896 (36.3)
Total used 596,361 614,821 (3.0)
Parts and service 285,334 279,191 2.2
Finance, insurance
and other, net 98,868 95,016 4.1
Total $2,148,919 $2,266,961 (5.2)
GROSS MARGIN %:
New vehicle retail
sales 4.8 5.1
Used vehicle
retail sales 6.6 6.7
Used vehicle
wholesale sales 1.0 (0.2)
Total used 6.2 6.0
Parts and service 53.9 53.8
Finance, insurance
and other, net 100.0 100.0
Total 16.1 15.3
GROSS PROFIT:
New vehicle retail
sales $55,745 $65,518 (14.9)
Used vehicle
retail sales 36,505 37,316 (2.2)
Used vehicle
wholesale sales 409 (130) 414.6
Total used 36,914 37,186 (0.7)
Parts and service 153,657 150,073 2.4
Finance, insurance
and other, net 98,868 95,016 4.1
Total $345,184 $347,793 (0.8)
UNITS SOLD:
Retail new
vehicles sold 31,275 34,860 (10.3)
Retail used
vehicles sold 27,406 25,980 5.5
Wholesale used
vehicles sold 6,932 9,638 (28.1)
Total used 34,338 35,618 (3.6)
AVERAGE RETAIL SALES PRICE:
New vehicle retail $37,358 $36,659 1.9
Used vehicle
retail $20,321 $21,283 (4.5)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $1,782 $1,879 (5.2)
Used vehicle
retail sales 1,332 1,436 (7.2)
Used vehicle
wholesale sales 59 (13) 553.8
Total used 1,075 1,044 3.0
Finance, insurance
and other, net
(per retail unit) $1,685 $1,562 7.9
OTHER:
Adjusted Finance,
insurance and
other revenue,
net(2)(3) $98,868 $101,566 (2.7)
Adjusted Total
Revenue (2) $2,148,919 $2,273,511 (5.5)
Adjusted Total
Gross Profit (2) $345,184 $354,343 (2.6)
Adjusted Total
Gross Margin (2) 16.1 15.6
Adjusted Finance,
insurance and
other, net (per
retail unit) (2) $1,685 $1,669 1.0
SG&A expenses $239,268 $257,330 (7.0)
Adjusted SG&A
expenses(2) $243,036 $247,663 (1.9)
SG&A as % revenues 11.1 11.4
Adjusted SG&A as %
revenues (2) 11.3 10.9
SG&A as % gross
profit 69.3 74.0
Adjusted SG&A as %
gross profit (2) 70.4 69.9
Operating margin % 3.3 3.0
Adjusted operating
margin % (2) 4.1 4.2
Nine Months Ended September 30,
2018 2017 % Increase/
(Decrease)
---
REVENUES:
New vehicle retail
sales $3,357,715 $3,435,980 (2.3)
Used vehicle
retail sales 1,690,460 1,609,804 5.0
Used vehicle
wholesale sales 133,389 198,628 (32.8)
Total used 1,823,849 1,808,432 0.9
Parts and service 850,231 831,905 2.2
Finance, insurance
and other, net 288,317 274,338 5.1
Total $6,320,112 $6,350,655 (0.5)
GROSS MARGIN %:
New vehicle retail
sales 4.8 5.0
Used vehicle
retail sales 6.3 7.0
Used vehicle
wholesale sales 2.5 (0.1)
Total used 6.1 6.2
Parts and service 53.7 53.8
Finance, insurance
and other, net 100.0 100.0
Total 16.1 15.9
GROSS PROFIT:
New vehicle retail
sales $162,465 $173,509 (6.4)
Used vehicle
retail sales 107,251 111,896 (4.2)
Used vehicle
wholesale sales 3,395 (220) 1,643.2
Total used 110,646 111,676 (0.9)
Parts and service 456,654 447,420 2.1
Finance, insurance
and other, net 288,317 274,338 5.1
Total $1,018,082 $1,006,943 1.1
UNITS SOLD:
Retail new
vehicles sold 89,255 93,088 (4.1)
Retail used
vehicles sold 82,235 76,078 8.1
Wholesale used
vehicles sold 23,288 29,300 (20.5)
Total used 105,523 105,378 0.1
AVERAGE RETAIL SALES PRICE:
New vehicle retail $37,619 $36,911 1.9
Used vehicle
retail $20,556 $21,160 (2.9)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $1,820 $1,864 (2.4)
Used vehicle
retail sales 1,304 1,471 (11.4)
Used vehicle
wholesale sales 146 (8) 1,925.0
Total used 1,049 1,060 (1.0)
Finance, insurance
and other, net
(per retail unit) $1,681 $1,622 3.6
OTHER:
Adjusted Finance,
insurance and
other revenue,
net (2)(3) $288,317 $280,888 2.6
Adjusted Total
Revenue (2) $6,320,112 $6,357,205 (0.6)
Adjusted Total
Gross Profit (2) 1,018,082.0 1,013,493.0 0.5
Adjusted Total
Gross Margin (2) 16.1 15.9
Adjusted Finance,
insurance and
other, net (per
retail unit)(2) 1,681.0 1,660.0 1.3
SG&A expenses 735,914.0 735,942.0 (0.0)
Adjusted SG&A
expenses (2) 731,870.0 727,465.0 0.6
SG&A as % revenues 11.6 11.6
Adjusted SG&A as %
revenues (2) 11.6 11.4
SG&A as % gross
profit 72.3 73.1
Adjusted SG&A as %
gross profit (2) 71.9 71.8
Operating margin % 3.4 3.6
Adjusted operating
margin % (2) 3.9 3.9
(1) Same store amounts include
the results for the identical
months in each period presented
in the comparison, commencing
with the first full month we
owned the dealership and, in the
case of dispositions, ending
with the last full month we
owned it. Same store results
also include the activities of
our corporate office.
(2)See the section of this
release entitled "Non-GAAP
Financial Measures" and the
tables attached hereto for
information regarding certain
selected items that the Company
believes impact comparability of
financial results between
reporting periods, as well as
for information regarding non-
GAAP financial measures and
their reconciliation to the most
directly comparable measures as
reported in accordance with U.S.
GAAP.
(3)Finance, insurance and other
revenue represents fees earned
for the financing of vehicle
sales transactions and from the
sale of insurance and vehicle
service contracts. Such amounts
are reported net of estimated
amounts to be charged in the
future. As a result, finance,
insurance and other revenue and
gross profit are the same.
Group 1 Automotive, Inc.
Additional Information - Same Store U.K. (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended September 30,
2018 2017 % Increase/
Constant Currency (2)
(Decrease)
% Increase/ (Decrease)
---
REVENUES:
New vehicle retail
sales $236,127 $319,782 (26.2) (25.3)
Used vehicle
retail sales 166,503 146,611 13.6 14.3
Used vehicle
wholesale sales 36,763 35,808 2.7 3.4
Total used 203,266 182,419 11.4 12.2
Parts and service 46,187 43,851 5.3 5.9
Finance, insurance
and other, net 10,809 11,706 (7.7) (6.7)
Total $496,389 $557,758 (11.0) (10.1)
GROSS MARGIN %:
New vehicle retail
sales 5.6 5.2
Used vehicle
retail sales 5.4 5.0
Used vehicle
wholesale sales (1.7) (0.8)
Total used 4.1 3.9
Parts and service 55.6 57.5
Finance, insurance
and other, net 100.0 100.0
Total 11.7 10.9
GROSS PROFIT:
New vehicle retail
sales $13,224 $16,625 (20.5) (19.3)
Used vehicle
retail sales 8,918 7,384 20.8 21.5
Used vehicle
wholesale sales (623) (280) (122.5) (117.2)
Total used 8,295 7,104 16.8 17.7
Parts and service 25,701 25,208 2.0 2.6
Finance, insurance
and other, net 10,809 11,706 (7.7) (6.7)
Total $58,029 $60,643 (4.3) (3.4)
UNITS SOLD:
Retail new
vehicles sold 8,121 10,341 (21.5)
Retail used
vehicles sold 6,982 6,483 7.7
Wholesale used
vehicles sold 4,697 4,594 2.2
Total used 11,679 11,077 5.4
AVERAGE RETAIL SALES PRICE:
New vehicle retail $29,076 $30,924 (6.0) (4.9)
Used vehicle
retail $23,847 $22,615 5.4 6.1
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $1,628 $1,608 1.2 2.8
Used vehicle
retail sales 1,277 1,139 12.1 12.8
Used vehicle
wholesale sales (133) (61) (118.0) (112.4)
Total used 710 641 10.8 11.7
Finance, insurance
and other, net
(per retail unit) $716 $696 2.9 3.9
OTHER:
SG&A expenses $50,901 $49,651 2.5 3.2
SG&A as % revenues 10.3 8.9
SG&A as % gross
profit 87.7 81.9
Operating margin % 0.9 1.6
Nine Months Ended September 30,
2018 2017 % Increase/
Constant Currency (2)
(Decrease) % Increase/ (Decrease)
---
REVENUES:
New vehicle retail
sales $760,304 $806,364 (5.7) (10.8)
Used vehicle
retail sales 462,087 388,892 18.8 12.7
Used vehicle
wholesale sales 107,775 96,470 11.7 5.7
Total used 569,862 485,362 17.4 11.3
Parts and service 130,198 117,105 11.2 5.3
Finance, insurance
and other, net 33,339 30,413 9.6 4.0
Total $1,493,703 $1,439,244 3.8 (1.7)
GROSS MARGIN %:
New vehicle retail
sales 5.4 5.5
Used vehicle
retail sales 5.1 5.0
Used vehicle
wholesale sales (1.5) (0.8)
Total used 3.9 3.8
Parts and service 56.9 57.7
Finance, insurance
and other, net 100.0 100.0
Total 11.4 11.2
GROSS PROFIT:
New vehicle retail
sales $41,058 $44,623 (8.0) (12.7)
Used vehicle
retail sales 23,563 19,404 21.4 15.1
Used vehicle
wholesale sales (1,601) (764) (109.6) (102.7)
Total used 21,962 18,640 17.8 11.5
Parts and service 74,110 67,596 9.6 3.9
Finance, insurance
and other, net 33,339 30,413 9.6 4.0
Total $170,469 $161,272 5.7 0.2
UNITS SOLD:
Retail new
vehicles sold 24,507 27,057 (9.4)
Retail used
vehicles sold 18,844 17,819 5.8
Wholesale used
vehicles sold 13,517 12,840 5.3
Total used 32,361 30,659 5.6
AVERAGE RETAIL SALES PRICE:
New vehicle retail $31,024 $29,802 4.1 (1.5)
Used vehicle
retail $24,522 $21,825 12.4 6.5
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $1,675 $1,649 1.6 (3.7)
Used vehicle
retail sales 1,250 1,089 14.8 8.9
Used vehicle
wholesale sales (118) (60) (96.7) (92.5)
Total used 679 608 11.7 5.7
Finance, insurance
and other, net
(per retail unit) $769 $678 13.4 7.7
OTHER:
SG&A expenses $144,035 $132,667 8.6 2.8
Adjusted SG&A
expenses(2) $144,035 $132,379 8.8 3.0
SG&A as % revenues 9.6 9.2
Adjusted SG&A as %
revenues (2) 9.6 9.2
SG&A as % gross
profit 84.5 82.3
Adjusted SG&A as %
gross profit (2) 84.5 82.1
Operating margin % 1.3 1.6
Adjusted operating
margin % (2) 1.3 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 September 30,
2018 2017 % Increase/
Constant Currency (2)
% Increase/ (Decrease)
(Decrease)
---
REVENUES:
New vehicle retail
sales $59,951 $79,203 (24.3) (5.5)
Used vehicle
retail sales 19,679 22,930 (14.2) 6.7
Used vehicle
wholesale sales 3,957 2,818 40.4 76.1
Total used 23,636 25,748 (8.2) 14.3
Parts and service 10,802 12,495 (13.5) 7.6
Finance, insurance
and other, net 2,029 2,162 (6.2) 17.2
Total $96,418 $119,608 (19.4) 0.5
GROSS MARGIN %:
New vehicle retail
sales 8.2 5.7
Used vehicle
retail sales 6.5 7.4
Used vehicle
wholesale sales 3.9 7.7
Total used 6.1 7.4
Parts and service 44.3 45.5
Finance, insurance
and other, net 100.0 100.0
Total 13.7 11.9
GROSS PROFIT:
New vehicle retail
sales $4,930 $4,505 9.4 36.4
Used vehicle
retail sales 1,283 1,693 (24.2) (6.1)
Used vehicle
wholesale sales 155 216 (28.2) (10.2)
Total used 1,438 1,909 (24.7) (6.6)
Parts and service 4,787 5,681 (15.7) 4.9
Finance, insurance
and other, net 2,029 2,162 (6.2) 17.2
Total $13,184 $14,257 (7.5) 15.2
UNITS SOLD:
Retail new
vehicles sold 1,986 2,179 (8.9)
Retail used
vehicles sold 1,027 1,034 (0.7)
Wholesale used
vehicles sold 359 242 48.3
Total used 1,386 1,276 8.6
AVERAGE RETAIL SALES PRICE:
New vehicle retail $30,187 $36,348 (17.0) 3.6
Used vehicle
retail $19,162 $22,176 (13.6) 7.4
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $2,482 $2,067 20.1 49.7
Used vehicle
retail sales 1,249 1,637 (23.7) (5.5)
Used vehicle
wholesale sales 432 893 (51.6) (39.4)
Total used 1,038 1,496 (30.6) (14.0)
Finance, insurance
and other, net
(per retail unit) $673 $673 25.0
OTHER:
SG&A expenses $13,725 $12,794 7.3 34.8
Adjusted SG&A
expenses(2) $11,218 $12,794 (12.3) 9.4
SG&A as % revenues 14.2 10.7
Adjusted SG&A as %
revenues (2) 11.6 10.7
SG&A as % gross
profit 104.1 89.7
Adjusted SG&A as %
gross profit (2) 85.1 89.7
Operating margin % (0.9) 0.9
Adjusted operating
margin % (2) 1.7 0.9
Nine Months Ended September 30,
2018 2017 % Increase/
Constant Currency (2)
% Increase/ (Decrease)
(Decrease)
---
REVENUES:
New vehicle retail
sales $196,338 $210,873 (6.9) 4.9
Used vehicle
retail sales 65,139 66,081 (1.4) 10.8
Used vehicle
wholesale sales 11,345 8,357 35.8 55.2
Total used 76,484 74,438 2.7 15.8
Parts and service 33,593 35,480 (5.3) 6.8
Finance, insurance
and other, net 5,868 6,043 (2.9) 10.4
Total $312,283 $326,834 (4.5) 7.7
GROSS MARGIN %:
New vehicle retail
sales 6.6 5.8
Used vehicle
retail sales 6.2 7.3
Used vehicle
wholesale sales 3.3 8.0
Total used 5.7 7.4
Parts and service 44.6 45.6
Finance, insurance
and other, net 100.0 100.0
Total 12.2 12.2
GROSS PROFIT:
New vehicle retail
sales $12,879 $12,193 5.6 20.6
Used vehicle
retail sales 4,011 4,821 (16.8) (6.3)
Used vehicle
wholesale sales 372 669 (44.4) (37.7)
Total used 4,383 5,490 (20.2) (10.1)
Parts and service 14,990 16,180 (7.4) 4.4
Finance, insurance
and other, net 5,868 6,043 (2.9) 10.4
Total $38,120 $39,906 (4.5) 8.3
UNITS SOLD:
Retail new
vehicles sold 6,116 6,035 1.3
Retail used
vehicles sold 3,094 3,003 3.0
Wholesale used
vehicles sold 1,030 748 37.7
Total used 4,124 3,751 9.9
AVERAGE RETAIL SALES PRICE:
New vehicle retail $32,102 $34,942 (8.1) 3.5
Used vehicle
retail $21,053 $22,005 (4.3) 7.6
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $2,106 $2,020 4.3 19.0
Used vehicle
retail sales 1,296 1,605 (19.3) (9.1)
Used vehicle
wholesale sales 361 894 (59.6) (54.7)
Total used 1,063 1,464 (27.4) (18.3)
Finance, insurance
and other, net
(per retail unit) $637 $669 (4.8) 8.4
OTHER:
SG&A expenses $36,578 $36,139 1.2 15.7
Adjusted SG&A
expenses(2) $33,644 $36,139 (6.9) 5.3
SG&A as % revenues 11.7 11.1
Adjusted SG&A as %
revenues (2) 10.8 11.1
SG&A as % gross
profit 96.0 90.6
Adjusted SG&A as %
gross profit (2) 88.3 90.6
Operating margin % 0.1 0.8
Adjusted operating
margin % (2) 1.0 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 September 30,
2018 2017 % Increase/
Constant Currency (2)
(Decrease) % Increase/ (Decrease)
---
REVENUES:
New vehicle retail
sales $1,464,434 $1,676,918 (12.7) (11.6)
Used vehicle
retail sales 743,092 722,466 2.9 3.7
Used vehicle
wholesale sales 80,171 100,522 (20.2) (19.0)
Total used 823,263 822,988 0.0 0.9
Parts and service 342,323 335,537 2.0 2.9
Finance, insurance
and other, net 111,706 108,884 2.6 3.2
Total $2,741,726 $2,944,327 (6.9) (5.9)
GROSS MARGIN %:
New vehicle retail
sales 5.0 5.2
Used vehicle
retail sales 6.3 6.4
Used vehicle
wholesale sales (0.1) (0.2)
Total used 5.7 5.6
Parts and service 53.8 53.9
Finance, insurance
and other, net 100.0 100.0
Total 15.2 14.4
GROSS PROFIT:
New vehicle retail
sales $73,899 $86,648 (14.7) (13.1)
Used vehicle
retail sales 46,706 46,393 0.7 1.5
Used vehicle
wholesale sales (59) (194) 69.6 97.7
Total used 46,647 46,199 1.0 1.9
Parts and service 184,145 180,962 1.8 2.5
Finance, insurance
and other, net 111,706 108,884 2.6 3.2
Total $416,397 $422,693 (1.5) (0.6)
UNITS SOLD:
Retail new
vehicles sold 41,382 47,380 (12.7)
Retail used
vehicles sold 35,415 33,497 5.7
Wholesale used
vehicles sold 11,988 14,474 (17.2)
Total used 47,403 47,971 (1.2)
AVERAGE RETAIL SALES PRICE:
New vehicle retail $35,388 $35,393 (0.0) 1.2
Used vehicle
retail $20,982 $21,568 (2.7) (1.9)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $1,786 $1,829 (2.4) (0.5)
Used vehicle
retail sales 1,319 1,385 (4.8) (4.0)
Used vehicle
wholesale sales (5) (13) 61.5 97.3
Total used 984 963 2.2 3.1
Finance, insurance
and other, net
(per retail unit) $1,455 $1,346 8.1 8.6
OTHER:
Adjusted Finance,
insurance and
other revenue,
net (2)(3) $111,706 $115,434 (3.2) (2.7)
Adjusted Total
Revenue (2) $2,741,726 $2,950,877 (7.1) (6.1)
Adjusted Total
Gross Profit (2) $416,397 $429,243 (3.0) (2.1)
Adjusted Total
Gross Margin (2) 15.2 14.5
Adjusted Finance,
insurance and
other, net (per
retail unit)(2) $1,455 $1,427 2.0 2.5
SG&A expenses $303,894 $319,775 (5.0) (3.8)
Adjusted SG&A
expenses(2) $305,155 $310,108 (1.6) (0.6)
SG&A as % revenues 11.1 10.9
Adjusted SG&A as %
revenues (2) 11.1 10.5
SG&A as % gross
profit 73.0 75.7
Adjusted SG&A as %
gross profit (2) 73.3 72.2
Operating margin % 2.7 2.7
Adjusted operating
margin % (2) 3.5 3.5
Nine Months Ended September 30,
2018 2017 % Increase/
Constant Currency (2)
(Decrease) % Increase/ (Decrease)
---
REVENUES:
New vehicle retail
sales $4,314,357 $4,453,217 (3.1) (3.5)
Used vehicle
retail sales 2,217,686 2,064,777 7.4 6.6
Used vehicle
wholesale sales 252,509 303,455 (16.8) (18.2)
Total used 2,470,195 2,368,232 4.3 3.5
Parts and service 1,014,022 984,490 3.0 2.7
Finance, insurance
and other, net 327,524 310,794 5.4 5.1
Total $8,126,098 $8,116,733 0.1 (0.4)
GROSS MARGIN %:
New vehicle retail
sales 5.0 5.2
Used vehicle
retail sales 6.1 6.6
Used vehicle
wholesale sales 0.9 (0.1)
Total used 5.5 5.7
Parts and service 53.8 54.0
Finance, insurance
and other, net 100.0 100.0
Total 15.1 14.9
GROSS PROFIT:
New vehicle retail
sales $216,402 $230,325 (6.0) (6.2)
Used vehicle
retail sales 134,825 136,121 (1.0) (1.5)
Used vehicle
wholesale sales 2,166 (315) 787.6 819.3
Total used 136,991 135,806 0.9 0.4
Parts and service 545,754 531,196 2.7 2.4
Finance, insurance
and other, net 327,524 310,794 5.4 5.1
Total $1,226,671 $1,208,121 1.5 1.2
UNITS SOLD:
Retail new
vehicles sold 119,878 126,180 (5.0)
Retail used
vehicles sold 104,173 96,900 7.5
Wholesale used
vehicles sold 37,835 42,888 (11.8)
Total used 142,008 139,788 1.6
AVERAGE RETAIL SALES PRICE:
New vehicle retail $35,990 $35,293 2.0 1.6
Used vehicle
retail $21,288 $21,308 (0.1) (0.8)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $1,805 $1,825 (1.1) (1.2)
Used vehicle
retail sales 1,294 1,405 (7.9) (8.4)
Used vehicle
wholesale sales 57 (7) 914.3 915.3
Total used 965 972 (0.7) (1.2)
Finance, insurance
and other, net
(per retail unit) $1,462 $1,393 5.0 4.6
OTHER:
Adjusted Finance,
insurance and
other revenue,
net (2)(3) $327,524 $317,344 3.2 2.9
Adjusted Total
Revenue (2) $8,126,098 $8,123,283 0.0 (0.4)
Adjusted Total
Gross Profit (2) $1,226,671 $1,214,671 1.0 0.7
Adjusted Total
Gross Margin (2) 15.1 15.0
Adjusted Finance,
insurance and
other, net (per
retail unit) (2) $1,462 $1,423 2.7 2.5
SG&A expenses $916,527 $904,748 1.3 1.0
Adjusted SG&A
expenses(2) $909,549 $895,983 1.5 1.2
SG&A as % revenues 11.3 11.1
Adjusted SG&A as %
revenues (2) 11.2 11.0
SG&A as % gross
profit 74.7 74.9
Adjusted SG&A as %
gross profit (2) 74.1 73.8
Operating margin % 2.9 3.1
Adjusted operating
margin % (2) 3.3 3.4
(1) Same store amounts include
the results for the identical
months in each period presented
in the comparison, commencing
with the first full month we
owned the dealership and, in the
case of dispositions, ending
with the last full month we
owned it. Same store results
also include the activities of
our corporate office.
(2)See the section of this
release entitled "Non-GAAP
Financial Measures" and the
tables attached hereto for
information regarding certain
selected items that the Company
believes impact comparability of
financial results between
reporting periods, as well as
for information regarding non-
GAAP financial measures and
their reconciliation to the most
directly comparable measures as
reported in accordance with U.S.
GAAP.
(3)Finance, insurance and other
revenue represents fees earned
for the financing of vehicle
sales transactions and from the
sale of insurance and vehicle
service contracts. Such amounts
are reported net of estimated
amounts to be charged in the
future. As a result, finance,
insurance and other revenue and
gross profit are the same.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - U.S.
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended September 30,
2018 2017 % Increase/
(Decrease)
FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:
As reported $101,610 $96,383 5.4
Pre-tax adjustments:
Catastrophic events 6,550
Adjusted Finance, insurance and other revenue, net (1) $101,610 $102,933 (1.3)
TOTAL REVENUES RECONCILIATION:
As reported $2,200,230 $2,301,959 (4.4)
Pre-tax adjustments:
Catastrophic events 6,550
Adjusted Total Revenues (1) $2,200,230 $2,308,509 (4.7)
TOTAL GROSS PROFIT RECONCILIATION:
As reported $352,471 $353,567 (0.3)
Pre-tax adjustments:
Catastrophic events 6,550
Adjusted Total Gross Profit (1) $352,471 $360,117 (2.1)
SG&A RECONCILIATION:
As reported $242,210 $261,787 (7.5)
Pre-tax adjustments:
Catastrophic events (8,149)
Gain (loss) on real estate and dealership transactions 5,394 (798)
Legal settlements 1,396 (720)
Adjusted SG&A (1) $249,000 $252,120 (1.2)
TOTAL GROSS MARGIN %:
Unadjusted 16.0 15.4
Adjusted (1) 16.0 15.6
FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):
Unadjusted $1,688 $1,566 7.8
Adjusted (1) $1,688 $1,673 0.9
SG&A AS % REVENUES:
Unadjusted 11.0 11.4
Adjusted (1) 11.3 11.0
SG&A AS % GROSS PROFIT:
Unadjusted 68.7 74.0
Adjusted (1) 70.6 70.0
OPERATING MARGIN %:
Unadjusted 3.3 3.0
Adjusted (1), (2) 4.1 4.1
PRETAX MARGIN %:
Unadjusted 2.0 1.8
Adjusted (1), (2) 2.7 2.9
SAME STORE FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:
As reported $98,868 $95,016 4.1
Pre-tax adjustments:
Catastrophic events 6,550
Adjusted Finance, insurance and other revenue, net (1) $98,868 $101,566 (2.7)
SAME STORE TOTAL REVENUES RECONCILIATION:
As reported $2,148,919 $2,266,961 (5.2)
Pre-tax adjustments:
Catastrophic events 6,550
Adjusted Total Revenues (1) $2,148,919 $2,273,511 (5.5)
SAME STORE TOTAL GROSS PROFIT RECONCILIATION:
As reported $345,184 $347,793 (0.8)
Pre-tax adjustments:
Catastrophic events 6,550
Adjusted Total Gross Profit (1) $345,184 $354,343 (2.6)
SAME STORE SG&A RECONCILIATION:
As reported $239,268 $257,330 (7.0)
Pre-tax adjustments:
Catastrophic events (8,149)
Gain (loss) on real estate and dealership transactions 2,372 (798)
Legal settlements 1,396 (720)
Adjusted Same Store SG&A (1) $243,036 $247,663 (1.9)
SAME STORE TOTAL GROSS MARGIN %:
Unadjusted 16.1 15.3
Adjusted (1) 16.1 15.6
SAME STORE FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):
Unadjusted $1,685 $1,562 7.9
Adjusted (1) $1,685 $1,669 1.0
SAME STORE SG&A AS % REVENUES:
Unadjusted 11.1 11.4
Adjusted (1) 11.3 10.9
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 69.3 74.0
Adjusted (1) 70.4 69.9
SAME STORE OPERATING MARGIN %:
Unadjusted 3.3 3.0
Adjusted (1), (3) 4.1 4.2
Nine Months Ended September 30,
2018 2017 % Increase/
(Decrease)
FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:
As reported $295,239 $276,754 6.7
Pre-tax adjustments:
Catastrophic events 6,550
Adjusted Finance, insurance and other revenue, net (1) $295,239 $283,304 4.2
TOTAL REVENUES RECONCILIATION:
As reported $6,456,717 $6,393,368 1.0
Pre-tax adjustments:
Catastrophic events 6,550
Adjusted Total Revenues (1) $6,456,717 $6,399,918 0.9
TOTAL GROSS PROFIT RECONCILIATION:
As reported $1,038,826 $1,014,636 2.4
Pre-tax adjustments:
Catastrophic events 6,550
Adjusted Total Gross Profit (1) $1,038,826 $1,021,186 1.7
SG&A RECONCILIATION:
As reported $729,430 $741,904 (1.7)
Pre-tax adjustments:
Catastrophic events (5,812) (8,792)
Gain (loss) on real estate and dealership transactions 25,513 (798)
Legal settlements (604) 1,113
Adjusted SG&A (1) $748,527 $733,427 2.1
TOTAL GROSS MARGIN %:
Unadjusted 16.1 15.9
Adjusted (1) 16.1 16.0
FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):
Unadjusted $1,687 $1,628 3.6
Adjusted (1) $1,687 $1,667 1.2
SG&A AS % REVENUES:
Unadjusted 11.3 11.6
Adjusted (1) 11.6 11.5
SG&A AS % OF GROSS PROFIT:
Unadjusted 70.2 73.1
Adjusted (1) 72.1 71.8
OPERATING MARGIN %:
Unadjusted 3.8 3.6
Adjusted (1), (2) 3.9 3.9
PRETAX MARGIN %:
Unadjusted 2.4 2.2
Adjusted (1), (2) 2.5 2.6
SAME STORE FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:
As reported $288,317 $274,338 5.1
Pre-tax adjustments:
Catastrophic events 6,550
Adjusted Finance, insurance and other revenue, net (1) $288,317 $280,888 2.6
SAME STORE TOTAL REVENUES RECONCILIATION:
As reported $6,320,112 $6,350,655 (0.5)
Pre-tax adjustments:
Catastrophic events 6,550
Adjusted Total Revenues (1) $6,320,112 $6,357,205 (0.6)
SAME STORE TOTAL GROSS PROFIT RECONCILIATION:
As reported $1,018,082 $1,006,943 1.1
Pre-tax adjustments:
Catastrophic events 6,550
Adjusted Total Gross Profit (1) $1,018,082 $1,013,493 0.5
SAME STORE SG&A RECONCILIATION:
As reported $735,914 $735,942 (0.0)
Pre-tax adjustments:
Catastrophic events (5,812) (8,792)
Gain (loss) on real estate and dealership transactions 2,372 (798)
Legal settlements (604) 1,113
Adjusted Same Store SG&A (1) $731,870 $727,465 0.6
SAME STORE TOTAL GROSS MARGIN %:
Unadjusted 16.1 15.9
Adjusted (1) 16.1 15.9
SAME STORE FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):
Unadjusted $1,681 $1,622 3.6
Adjusted (1) $1,681 $1,660 1.3
SAME STORE SG&A AS % REVENUES:
Unadjusted 11.6 11.6
Adjusted (1) 11.6 11.4
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 72.3 73.1
Adjusted (1) 71.9 71.8
SAME STORE OPERATING MARGIN %:
Unadjusted 3.4 3.6
Adjusted (1), (3) 3.9 3.9
(1) See the
section of
this release
entitled
"Non-GAAP
Financial
Measures"
for
information
regarding
non-GAAP
financial
measures and
certain
selected
items that
the Company
believes
impact
comparability
of financial
results
between
reporting
periods.
(2) Excludes the
impact of
SG&A
reconciling
items above,
as well as
non-cash
asset
impairment
charges of
$23,159 and
$27,427 for
the three
and nine
months ended
September
30, 2018,
respectively,
and $9,526
for the
three and
nine months
ended
September
30, 2017.
(3) Excludes the
impact of
Same Store
SG&A
reconciling
items above,
as well as
non-cash
asset
impairment
charges of
$22,161 and
$26,183 for
the three
and nine
months ended
September
30, 2018,
respectively,
and $9,526
for the
three and
nine months
ended
September
30, 2017.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - U.K.
(Unaudited)
(Dollars in thousands, except per share amounts)
Nine Months Ended September 30,
2018 2017 % Increase/
(Decrease)
SG&A RECONCILIATION:
As reported $181,558 $137,475 32.1
Pre-tax adjustments:
Acquisition costs (288)
Adjusted SG&A (1) $181,558 $137,187 32.3
SG&A AS % REVENUES:
Unadjusted 9.5 9.3
Adjusted (1) 9.5 9.3
SG&A AS % OF GROSS PROFIT:
Unadjusted 84.5 83.4
Adjusted (1) 84.5 83.2
OPERATING MARGIN %:
Unadjusted 1.3 1.5
Adjusted (1) 1.3 1.5
PRETAX MARGIN %:
Unadjusted 0.8 1.1
Adjusted (1) 0.8 1.1
SAME STORE SG&A RECONCILIATION:
As reported $144,035 $132,667 8.6
Pre-tax adjustments:
Acquisition costs (288)
Adjusted Same Store SG&A (1) $144,035 $132,379 8.8
SAME STORE SG&A AS % REVENUES:
Unadjusted 9.6 9.2
Adjusted (1) 9.6 9.2
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 84.5 82.3
Adjusted (1) 84.5 82.1
SAME STORE OPERATING MARGIN %:
Unadjusted 1.3 1.6
Adjusted (1) 1.3 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 September 30,
2018 2017 % Increase/
(Decrease)
SG&A RECONCILIATION:
As reported $14,857 $13,145 13.0
Pre-tax adjustments:
Legal settlements (3,120)
Adjusted SG&A (1) $11,737 $13,145 (10.7)
SG&A AS % REVENUES:
Unadjusted 14.4 11.0
Adjusted (1) 11.4 11.0
SG&A AS % GROSS PROFIT:
Unadjusted 106.8 92.2
Adjusted (1) 84.4 92.2
OPERATING MARGIN %:
Unadjusted (1.3) 0.6
Adjusted (1) 1.8 0.6
PRETAX MARGIN %:
Unadjusted (1.7) 0.5
Adjusted (1) 1.4 0.5
SAME STORE SG&A RECONCILIATION:
As reported $13,725 $12,794 7.3
Pre-tax adjustments:
Legal settlements (2,507)
Adjusted Same Store SG&A (1) $11,218 $12,794 (12.3)
SAME STORE SG&A AS % REVENUES:
Unadjusted 14.2 10.7
Adjusted (1) 11.6 10.7
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 104.1 89.7
Adjusted (1) 85.1 89.7
SAME STORE OPERATING MARGIN %:
Unadjusted (0.9) 0.9
Adjusted (1) 1.7 0.9
Nine Months Ended September 30,
2018 2017 % Increase/
(Decrease)
SG&A RECONCILIATION:
As reported $38,222 $37,295 2.5
Pre-tax adjustments:
Legal settlements (3,670)
Adjusted SG&A (1) $34,552 $37,295 (7.4)
SG&A AS % REVENUES:
Unadjusted 11.9 11.2
Adjusted (1) 10.7 11.2
SG&A AS % OF GROSS PROFIT:
Unadjusted 97.4 92.4
Adjusted (1) 88.1 92.4
OPERATING MARGIN %:
Unadjusted (0.1) 0.6
Adjusted (1) 1.1 0.6
PRETAX MARGIN %:
Unadjusted (0.5) 0.4
Adjusted (1) 0.7 0.4
SAME STORE SG&A RECONCILIATION:
As reported $36,578 $36,139 1.2
Pre-tax adjustments:
Legal settlements (2,934)
Adjusted Same Store SG&A (1) $33,644 $36,139 (6.9)
SAME STORE SG&A AS % REVENUES:
Unadjusted 11.7 11.1
Adjusted (1) 10.8 11.1
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 96.0 90.6
Adjusted (1) 88.3 90.6
SAME STORE OPERATING MARGIN %:
Unadjusted 0.1 0.8
Adjusted (1) 1.0 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 September 30,
2018 2017 % Increase/
(Decrease)
NET INCOME RECONCILIATION:
As reported
Pretax Net Income $44,365 $47,143
Income Tax Provision (9,587) (17,262)
Net Income $34,778 $29,881 16.4
Effective Tax Rate 21.6% 36.6%
Adjustments:
Catastrophic events
Pre-tax 14,699
Tax impact (5,677)
(Gain) loss on real estate and dealership
transactions
Pre-tax (5,394) 798
Tax impact 1,249 (301)
Legal settlements
Pre-tax 1,724 720
Tax impact (118) (270)
Non-cash asset impairment
Pre-tax 23,159 9,526
Tax impact (5,504) (3,579)
Allowance for uncertain tax positions
Pre-tax
Tax impact 834
Tax rate changes
Pre-tax
Tax impact (705)
Adjusted
Pretax Net Income $63,854 $72,886
Income Tax Provision (14,665) (26,255)
Adjusted net income (1) $49,189 $46,631 5.5
Effective Tax Rate 23.0% 36.02%
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED
COMMON
SHARES RECONCILIATION:
Adjusted net income (1) $49,189 $46,631 5.5
Less: Adjusted earnings allocated to
participating securities 1,676 1,603 4.6
Adjusted net income available to diluted
common shares (1) $47,513 $45,028 5.5
DILUTED (LOSS) INCOME PER COMMON SHARE RECONCILIATION:
As reported $1.74 $1.43 21.7
After-tax adjustments:
Catastrophic events 0.44
(Gain) loss on real estate and dealership
transactions (0.21) 0.02
Legal settlements 0.08 0.02
Non-cash asset impairment 0.89 0.28
Allowance for uncertain tax positions 0.04
Tax rate changes (0.03)
Adjusted diluted income per share (1) $2.47 $2.23 10.8
FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:
As reported $116,084 $110,993 4.6
Pre-tax adjustments:
Catastrophic events 6,550
Adjusted Finance, insurance and other
revenue, net (1) $116,084 $117,543 (1.2)
TOTAL REVENUES RECONCILIATION:
As reported $2,889,058 $3,012,292 (4.1)
Pre-tax adjustments:
Catastrophic events 6,550
Adjusted Total Revenues (1) $2,889,058 $3,018,842 (4.3)
TOTAL GROSS PROFIT RECONCILIATION:
As reported $435,101 $431,420 0.9
Pre-tax adjustments:
Catastrophic events 6,550
Adjusted Total Gross Profit (1) $435,101 $437,970 (0.7)
SG&A RECONCILIATION:
As reported $316,771 $328,327 (3.5)
Pre-tax adjustments:
Catastrophic events (8,149)
Gain (loss) on real estate and dealership
transactions 5,394 (798)
Legal settlements (1,724) (720)
Adjusted SG&A (1) $320,441 $318,660 0.6
TOTAL GROSS MARGIN %:
Unadjusted 15.1 14.3
Adjusted (1) 15.1 14.5
FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):
Unadjusted $1,429 $1,343 6.4
Adjusted (1) $1,429 $1,422 0.5
SG&A AS % REVENUES:
Unadjusted 11.0 10.9
Adjusted (1) 11.1 10.6
SG&A AS % GROSS PROFIT:
Unadjusted 72.8 76.1
Adjusted (1) 73.6 72.8
OPERATING MARGIN %:
Unadjusted 2.7 2.7
Adjusted (1), (2) 3.4 3.5
PRETAX MARGIN %:
Unadjusted 1.5 1.6
Adjusted (1), (2) 2.2 2.4
SAME STORE FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:
As reported $111,706 $108,884 2.6
Pre-tax adjustments:
Catastrophic events 6,550
Adjusted Finance, insurance and other
revenue, net (1) $111,706 $115,434 (3.2)
SAME STORE TOTAL REVENUES RECONCILIATION:
As reported $2,741,726 $2,944,327 (6.9)
Pre-tax adjustments:
Catastrophic events 6,550
Adjusted Total Revenues (1) $2,741,726 $2,950,877 (7.1)
SAME STORE TOTAL GROSS PROFIT RECONCILIATION:
As reported $416,397 $422,693 (1.5)
Pre-tax adjustments:
Catastrophic events 6,550
Adjusted Total Gross Profit (1) $416,397 $429,243 (3.0)
SAME STORE SG&A RECONCILIATION:
As reported $303,894 $319,775 (5.0)
Pre-tax adjustments:
Catastrophic events (8,149)
Gain (loss) on real estate and dealership
transactions 2,372 (798)
Legal settlements (1,111) (720)
Adjusted Same Store SG&A (1) $305,155 $310,108 (1.6)
SAME STORE TOTAL GROSS MARGIN %:
Unadjusted 15.2 14.4
Adjusted (1) 15.2 14.5
SAME STORE FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):
Unadjusted $1,455 $1,346 8.1
Adjusted (1) $1,455 $1,427 2.0
SAME STORE SG&A AS % REVENUES:
Unadjusted 11.1 10.9
Adjusted (1) 11.1 10.5
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 73.0 75.7
Adjusted (1) 73.3 72.2
SAME STORE OPERATING MARGIN %:
Unadjusted 2.7 2.7
Adjusted (1), (3) 3.5 3.5
Nine Months Ended September 30,
2018 2017 % Increase/
(Decrease)
NET INCOME RECONCILIATION:
As reported
Pretax Net Income $165,720 $160,029
Income Tax Provision (38,666) (57,076)
Net Income $127,054 $102,953 23.4
Effective Tax Rate 23.3% 35.7%
Adjustments:
Catastrophic events
Pre-tax 5,812 15,341
Tax impact (1,444) (5,926)
(Gain) loss on real estate and dealership
transactions
Pre-tax (25,513) 798
Tax impact 6,166 (301)
Acquisition costs
Pre-tax 288
Tax impact
Legal settlements
Pre-tax 4,274 (1,113)
Tax impact (687) 426
Non-cash asset impairment
Pre-tax 27,427 9,526
Tax impact (6,593) (3,579)
Allowance for uncertain tax positions
Pre-tax
Tax impact 834
Tax rate changes
Pre-tax
Tax impact (705)
Adjusted
Pretax Net Income $177,720 $184,869
Income Tax Provision (41,929) (65,622)
Adjusted net income (1) $135,791 $119,247 13.9
Effective Tax Rate 23.6% 35.5%
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED
COMMON SHARES
RECONCILIATION:
Adjusted net income (1) $135,791 $119,247 13.9
Less: Adjusted earnings allocated to
participating securities 4,605 4,248 8.4
Adjusted net income available to diluted
common shares (1) $131,186 $114,999 14.1
DILUTED INCOME PER COMMON SHARE RECONCILIATION:
As reported $6.18 $4.85 27.4
After-tax adjustments:
Catastrophic events 0.21 0.44
(Gain) loss on real estate and dealership
transactions (0.94) 0.03
Acquisition costs including related tax
impact 0.02
Legal settlements 0.18 (0.03)
Non-cash asset impairment 1.00 0.27
Allowance for uncertain tax positions 0.04
Tax rate changes (0.03)
Adjusted diluted income per share (1) $6.60 $5.62 17.4
FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:
As reported $343,462 $314,297 9.3
Pre-tax adjustments:
Catastrophic events 6,550
Adjusted Finance, insurance and other
revenue, net (1) $343,462 $320,847 7.0
TOTAL REVENUES RECONCILIATION:
As reported $8,692,546 $8,203,316 6.0
Pre-tax adjustments:
Catastrophic events 6,550
Adjusted Total Revenues (1) $8,692,546 $8,209,866 5.9
TOTAL GROSS PROFIT RECONCILIATION:
As reported $1,293,027 $1,219,834 6.0
Pre-tax adjustments:
Catastrophic events 6,550
Adjusted Total Gross Profit (1) $1,293,027 $1,226,384 5.4
SG&A RECONCILIATION:
As reported $949,210 $916,674 3.5
Pre-tax adjustments:
Catastrophic events (5,812) (8,792)
Gain (loss) on real estate and dealership
transactions 25,513 (798)
Acquisition costs (288)
Legal settlements (4,274) 1,113
Adjusted SG&A (1) $964,637 $907,909 6.2
TOTAL GROSS MARGIN %:
Unadjusted 14.9 14.9
Adjusted (1) 14.9 14.9
FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):
Unadjusted $1,430 $1,394 2.6
Adjusted (1) $1,430 $1,423 0.5
SG&A AS % REVENUES:
Unadjusted 10.9 11.2
Adjusted (1) 11.1 11.1
SG&A AS % OF GROSS PROFIT:
Unadjusted 73.4 75.1
Adjusted (1) 74.6 74.0
OPERATING MARGIN %:
Unadjusted 3.1 3.1
Adjusted (1), (2) 3.2 3.4
PRETAX MARGIN %:
Unadjusted 1.9 2.0
Adjusted (1), (2) 2.0 2.3
SAME STORE FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:
As reported $327,524 $310,794 5.4
Pre-tax adjustments:
Catastrophic events 6,550
Adjusted Finance, insurance and other
revenue, net (1) $327,524 $317,344 3.2
SAME STORE TOTAL REVENUES RECONCILIATION:
As reported $8,126,098 $8,116,733 0.1
Pre-tax adjustments:
Catastrophic events 6,550
Adjusted Total Revenues(1) $8,126,098 $8,123,283 0.0
SAME STORE TOTAL GROSS PROFIT RECONCILIATION:
As reported $1,226,671 $1,208,121 1.5
Pre-tax adjustments:
Catastrophic events 6,550
Adjusted Total Gross Profit(1) $1,226,671 $1,214,671 1.0
SAME STORE SG&A RECONCILIATION:
As reported $916,527 $904,748 1.3
Pre-tax adjustments:
Catastrophic events (5,812) (8,792)
Gain (loss) on real estate and dealership
transactions 2,372 (798)
Acquisition costs (288)
Legal settlements (3,538) 1,113
Adjusted Same Store SG&A (1) $909,549 $895,983 1.5
SAME STORE TOTAL GROSS MARGIN %:
Unadjusted 15.1 14.9
Adjusted (1) 15.1 15.0
SAME STORE FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):
Unadjusted 1,462 1,393 5.0
Adjusted (1) 1,462 1,423 2.7
SAME STORE SG&A AS % REVENUES:
Unadjusted 11.3 11.1
Adjusted (1) 11.2 11.0
SAME STORE SG&A AS % GROSS PROFIT: -
Unadjusted 74.7 74.9
Adjusted (1) 74.1 73.8
SAME STORE OPERATING MARGIN %:
Unadjusted 2.9 3.1
Adjusted (1), (3) 3.3 3.4
(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
$23,159 and
$27,427 for
the three
and nine
months ended
September
30, 2018,
respectively,
and $9,526
for the
three and
nine months
ended
September
30, 2017.
(3) Excludes the
impact of
Same Store
SG&A
reconciling
items above,
as well as
non-cash
asset
impairment
charges of
$22,161 and
$26,183 for
the three
and nine
months ended
September
30, 2018,
respectively,
and $9,526
for the
three and
nine months
ended
September
30, 2017.
View original content:http://www.prnewswire.com/news-releases/group-1-automotive-announces-third-quarter-2018-financial-results-300737642.html
SOURCE Group 1 Automotive, Inc.
