Feb 5, 2019 SOURCE: PR NewsWire
Group 1 Automotive Reports Fourth Quarter & Full Year 2018 Financial Results
HOUSTON, Feb. 5, 2019 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), ("Group 1" or the "Company"), an international, Fortune 500 automotive retailer, today reported 2018 fourth quarter net income of $30.7 million; diluted earnings per common share of $1.62; adjusted net income (a non-GAAP measure) of $43.8 million; and adjusted diluted earnings per common share (a non-GAAP measure) of $2.31.
As shown in the attached non-GAAP reconciliation tables, the 2018 fourth quarter adjusted results (non-GAAP measures) exclude approximately $13.1 million of net after-tax adjustments, or $0.69 per common share. These adjustments primarily reflect annual intangible asset testing, which resulted in non-cash franchise rights asset impairments of approximately $12.7 million after-tax, or $0.67 per share.
For the full year of 2018, net income decreased 26.1 percent from the comparable prior-year period, to $157.8 million; and diluted earnings per common share decreased 22.3 percent, to $7.83. Full year 2018 adjusted net income increased 9.8 percent, to $179.6 million; and adjusted diluted earnings per common share increased 15.3 percent, to an all-time high of $8.91. Total revenue grew 4.3 percent to a record $11.6 billion.
Full year and fourth quarter 2017 net after-tax adjustments are primarily explained by exclusion of benefits associated with U.S. tax reform legislation, which generated a gain of $73.0 million, or $3.45 per common share (see attached non-GAAP reconciliation tables for additional details).
"We are pleased with our 2018 performance that resulted in all-time records in revenue of $11.6 billion and adjusted diluted earnings per share of $8.91," said Earl J. Hesterberg, Group 1's president and chief executive officer. "We faced difficult new vehicle sales comparisons due to unprecedented replacement demand following Hurricane Harvey last year, as well as new vehicle supply shortages this year in the U.K. caused by Worldwide Harmonised Light Vehicle Test Procedure ("WLTP") legislation. Our strong performance in used vehicles, parts and service, and F&I allowed us to deliver positive Same Store gross profit growth despite these very significant headwinds in our new vehicle business."
Consolidated Results for Fourth 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 was nearly flat at $2.9 billion against difficult prior
year Hurricane Harvey driven comparisons and continued disruptions in
the U.K. from WLTP legislation.
-- Total gross profit grew 1.5 percent (2.6 percent), to $432.1 million.
-- New vehicle revenues decreased 5.3 percent (decreased 4.1 percent) on
5.5 percent lower unit sales. New vehicle gross profit decreased 9.2
percent (decreased 7.7 percent), to $81.3 million.
-- Retail used vehicle revenues increased 8.8 percent (10.0 percent) on
12.8 percent higher unit sales. Retail used vehicle gross profit
increased 1.4 percent (2.4 percent), to $41.1 million.
-- Parts and service gross profit increased 1.3 percent (2.2 percent) on
revenue growth of 3.3 percent (4.3 percent).
-- Finance and Insurance (F&I) gross profit PRU increased 5.8 percent (6.8
percent), to $1,582. U.S. F&I gross profit PRU increased $60, or 3.5
percent, to an all-time record of $1,760. Same Store U.S. F&I gross
profit PRU increased $70, or 4.1 percent, to an all-time record of
$1,767.
-- Selling, General and Administrative (SG&A) expenses as a percent of
gross profit increased 230 basis points, to 75.0 percent. Adjusted SG&A
expenses as a percent of gross profit increased 220 basis points, to
74.8 percent.
Consolidated Results for Full Year 2018 (year-over-year comparable basis)
-- Total revenue increased 4.3 percent (4.1 percent), to a record $11.6
billion.
-- Total gross profit grew 4.8 percent (4.8 percent).
-- New vehicle gross profit decreased 3.5 percent (decreased 3.2 percent).
The Company retailed 170,517 new vehicles in 2018, which represented a
one-percent decrease of new vehicle unit sales from 2017.
-- Retail used vehicle gross profit increased 4.7 percent (4.4 percent) on
a revenue increase of 13.1 percent (12.6 percent). The Company retailed
147,999 used vehicles in 2018, a 13.9 percent increase over 2017.
-- Parts and service gross profit rose 5.5 percent (5.3 percent) on 5.9
percent (5.8 percent) higher revenues.
-- F&I revenues rose 9.0 percent (8.9 percent). U.S. F&I gross profit PRU
increased $63, to $1,710. U.S. Same Store F&I gross profit PRU increased
$66, to $1,707.
-- SG&A expenses as a percent of gross profit decreased 70 basis points, to
73.8 percent. Adjusted SG&A expenses as a percent of gross profit
increased 90 basis points, to 74.6 percent. Adjusted U.S. SG&A expenses
as a percent of gross profit increased 80 basis points, to 71.9 percent.
-- Operating margin decreased 20 basis points to 2.9 percent. Adjusted
operating margin decreased 20 basis points to 3.2 percent.
Segment Results for Fourth Quarter 2018 (year-over-year comparable basis)
-- United States:The Company's U.S. operations accounted for 77.9 percent
of total revenues and 81.6 percent of total gross profit. Total U.S.
revenues were $2.3 billion, a decrease of 0.9 percent, driven by a 4.7
percent decrease in retail new vehicle revenue. New vehicle gross profit
PRU decreased $105, or 5.1 percent, to $1,962; and total gross profit
grew 0.5 percent, to $352.5 million. New vehicle inventory ended the
quarter at 68 days' supply. As a reminder, our year-over-year
comparisons were significantly influenced by Hurricane Harvey, as our
Houston and Beaumont markets' combined new vehicle unit sales declined
16 percent from the fourth quarter 2017. These two markets represent
approximately 26 percent of our U.S. new vehicle sales. Same Store
SG&A expenses as a percent of gross profit increased 150 basis points to
70.5 percent. Adjusted Same Store SG&A expenses as a percent of gross
profit increased 130 basis points, to 70.3 percent. Same Store
operating margin decreased 90 basis points to 3.3 percent. Adjusted
operating margin decreased 20 basis points, to 4.0 percent.
-- United Kingdom:The Company's U.K. operations accounted for 18.0 percent
of total revenues and 15.0 percent of total gross profit. Total U.K.
revenues increased 3.2 percent (6.3 percent), to $524.0 million, and
were driven by double-digit revenue growth across used vehicles,
aftersales, and F&I, despite the new vehicle industry decreasing by four
percent. WLTP-related supply disruption continued in the quarter with
the biggest impact being in the Audi brand, which historically
represents approximately 30 percent of our U.K. new vehicle mix. Audi's
new vehicle industry sales declined 46 percent for the quarter. Total
gross profit increased 7.4 percent (11.1 percent), to $64.9 million.
Same Store SG&A expenses as a percent of gross profit increased 240
basis points to 91.6 percent and Same Store operating margin decreased
50 basis points to 0.3 percent.
-- Brazil:The Company's Brazilian operations were profitable during the
fourth quarter and accounted for 4.1 percent of total revenues and 3.4
percent of total gross profit. The Company's Same Store gross profit
grew 10.5 percent on a constant currency basis, driven by revenue growth
of 44.2 percent in F&I, 11.8 percent in new vehicles, and 5.3 percent in
aftersales. Same Store F&I gross profit PRU grew 52.6 percent on a
constant currency basis. Same Store SG&A expenses as a percent of gross
profit decreased 900 basis points to 83.4 percent. Adjusted Same Store
SG&A as a percent of gross profit decreased 570 basis points to 83.4
percent. Same Store operating margin and Same Store adjusted operating
margin increased 650 basis points and 70 basis points respectively, to
1.7 percent.
Share Repurchase Authorization
In the fourth quarter 2018, the Company repurchased 1,313,786 shares at an average price per common share of $57.31 for a total of $75.3 million. For the full year of 2018, the Company repurchased 2,849,652 shares, or approximately 14 percent of the common shares outstanding at the start of the year, at an average price per common share of $63.75 for a total of $181.7 million. As of February 5, 2019, $49.7 million remains available under the Company's prior common stock share repurchase authorization.
Future repurchases may be made from time to time, based on market conditions, legal requirements and other corporate considerations, in the open market or in privately negotiated transactions, and subject to Board approval and covenant restrictions.
Corporate Development
During the fourth quarter 2018, as previously announced, the Company opened the following three add points:
-- Sterling McCall Acura Sugarland, an add point in greater Houston, Texas,
which is expected to generate approximately $40 million in annualized
revenues;
-- Toyota Aricanduva in São Paulo, Brazil, which is expected to generate
approximately $25 million in annualized revenues; and
-- Skoda Southend in East London, U.K., which is expected to generate
approximately $20 million in annualized revenues.
During the fourth quarter of 2018, the Company disposed of a Vauxhall franchise in Maidstone, southeast of London (U.K.), as well as a Volvo franchise in Columbus, Georgia. In January 2019, the Company disposed of a Hyundai franchise in Kansas City, Kansas, as well as a Mazda franchise in Houston, TX. These four franchises generated approximately $65 million in trailing-twelve-month revenues. The disposals are consistent with Group 1's strategy of actively managing its dealership portfolio to ensure appropriate returns on invested capital.
During 2018, the Company acquired a total of 17 franchises, which are expected to generate an estimated $615 million in annual revenues. The Company disposed of six franchises that generated approximately $195 million in trailing-twelve-month revenues at the time of disposition.
In January 2019, the Company opened Porsche of El Paso in Texas, which is expected to generate $25 million in annualized revenues.
Fourth 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 fourth quarter financial results and the Company's outlook and strategy.
The conference call will be simulcast live on the Internet at www.group1auto.com, then click on 'Investor Relations' and then 'Events' or through this link: http://www.group1corp.com/events. A webcast replay will be available for 30 days.
The conference call will also be available live by dialing in 15 minutes prior to the start of the call at:
Domestic:
1-888-317-6003
International:
1-412-317-6061
Conference ID: 5218141
A telephonic replay will be available following the call through February 12, 2019 by dialing:
Domestic:
1-877-344-7529
International:
1-412-317-0088
Replay ID: 10128118
ABOUT GROUP 1 AUTOMOTIVE, INC.
Group 1 owns and operates 182 automotive dealerships, 237 franchises, and 47 collision centers in the United States, the United Kingdom and Brazil that offer 30 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service contracts; provides automotive maintenance and repair services; and sells vehicle parts.
Investors please visit www.group1corp.com, www.group1auto.com, www.group1collision.com, www.facebook.com/group1auto, and www.twitter.com/group1auto, where Group 1 discloses additional information about the Company, its business, and its results of operations.
FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements related to future, not past, events and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. In this context, the forward-looking statements often include statements regarding our goals, plans, projections and guidance regarding our financial position, results of operations, market position, pending and potential future acquisitions and business strategy, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should," "foresee," "may" or "will" and similar expressions. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Any such forward-looking statements are not assurances of future performance and involve risks and uncertainties that may cause actual results to differ materially from those set forth in the statements. These risks and uncertainties include, among other things, (a) general economic and business conditions, (b) the level of manufacturer incentives, (c) the future regulatory environment, (d) our ability to obtain an inventory of desirable new and used vehicles, (e) our relationship with our automobile manufacturers and the willingness of manufacturers to approve future acquisitions, (f) our cost of financing and the availability of credit for consumers, (g) our ability to complete acquisitions and dispositions and the risks associated therewith, (h) foreign exchange controls and currency fluctuations, and (i) our ability to retain key personnel. For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with the SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.
NON-GAAP FINANCIAL MEASURES
In addition to evaluating the financial condition and results of our operations in accordance with GAAP, from time to time our management evaluates and analyzes results and any impact on the Company of strategic decisions and actions relating to, among other things, cost reduction, growth, and profitability improvement initiatives, and other events outside of normal, or "core," business and operations, by considering alternative financial measures not prepared in accordance with GAAP. This includes evaluating measures such as adjusted selling, general and administrative expenses, adjusted net income and adjusted diluted earnings per share. These adjusted measures are not measures of financial performance under U.S. GAAP, but are instead considered non-GAAP financial performance measures. Non-GAAP measures do not have definitions under GAAP and may be defined differently by and not be comparable to similarly titled measures used by other companies. As a result, any non-GAAP financial measures considered and evaluated by management are reviewed in conjunction with a review of the most directly comparable measures calculated in accordance with GAAP. We caution investors not to place undue reliance on such non-GAAP measures, but also to consider them with the most directly comparable GAAP measures. In our evaluation of results from time to time, we exclude items that do not arise directly from core operations, such as non-cash asset impairment charges, gains and losses on dealership franchise or real estate transactions, and catastrophic weather events such as hail storms, hurricanes, and snow storms. Because these non-core charges and gains materially affect the Company's financial condition or results in the specific period in which they are recognized, management also evaluates, and makes resource allocation and performance evaluation decisions based on, the related non-GAAP measures excluding such items.
In addition to using such non-GAAP measures to evaluate results in a specific period, management believes that such measures may provide more complete and consistent comparisons of operational performance on a period-over-period historical basis and a better indication of expected future trends. Our management also uses these adjusted measures in conjunction with U.S. GAAP financial measures to assess our business, including communication with our Board of Directors, investors and industry analysts concerning financial performance. We disclose these non-GAAP measures, and the related reconciliations, because we believe investors use these metrics in evaluating longer-term period-over-period performance, and to allow investors to better understand and evaluate the information used by management to assess operating performance. The exclusion of certain expenses in the calculation of non-GAAP financial measures should not be construed as an inference that these costs are unusual or infrequent. We anticipate excluding these expenses in the future presentation of our non-GAAP financial measures.
In addition, we evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our underlying business and results of operations, consistent with how we evaluate our performance. We calculate constant currency percentages by converting our current period reported results for entities reporting in currencies other than United States dollars using comparative period exchange rates rather than the actual exchange rates in effect during the respective periods. The constant currency performance measures should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with U.S. GAAP.
Investor contacts:
Sheila Roth
Manager, Investor Relations
Group 1 Automotive, Inc.
713-647-5741 | sroth@group1auto.com
Media contacts:
Pete DeLongchamps
Senior Vice President, Manufacturer Relations, Financial Services and Public Affairs
Group 1 Automotive, Inc.
713-647-5770 | pdelongchamps@group1auto.com
or
Clint Woods
Pierpont Communications, Inc.
713-627-2223 | cwoods@piercom.com
Group 1 Automotive, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended December 31,
2018 2017 % Increase/
(Decrease)
---
REVENUES:
New vehicle retail sales $
1,572,713 $
1,661,309 (5.3)
Used vehicle retail sales 771,242 709,072 8.8
Used vehicle wholesale sales 86,122 91,809 (6.2)
Parts and service 354,744 343,510 3.3
Finance, insurance and other,
net 123,991 114,705 8.1
Total revenues 2,908,812 2,920,405 (0.4)
COST OF SALES:
New vehicle retail sales 1,491,455 1,571,774 (5.1)
Used vehicle retail sales 730,178 668,558 9.2
Used vehicle wholesale sales 86,009 94,199 (8.7)
Parts and service 169,104 160,199 5.6
Total cost of sales 2,476,746 2,494,730 (0.7)
GROSS PROFIT 432,066 425,675 1.5
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 323,847 309,521 4.6
DEPRECIATION AND AMORTIZATION
EXPENSE 17,109 15,178 12.7
ASSET IMPAIRMENTS 16,456 9,980 64.9
OPERATING INCOME (LOSS) 74,654 90,996 (18.0)
OTHER EXPENSE:
Floorplan interest expense (16,547) (13,713) 20.7
Other interest expense, net (18,424) (18,309) 0.6
INCOME (LOSS) BEFORE INCOME
TAXES 39,683 58,974 (32.7)
BENEFIT (PROVISION) FOR INCOME
TAXES (8,965) 51,515 (117.4)
NET INCOME (LOSS) $
30,718 $
110,489 (72.2)
Less: Earnings allocated to
participating securities $
1,096 $
3,718 (70.5)
Earnings available to diluted
common shares $
29,622 $
106,771 (72.3)
DILUTED EARNINGS PER SHARE $
1.62 $
5.27 (69.3)
Weighted average dilutive
common shares outstanding 18,255 20,261 (9.9)
Weighted average participating
securities 681 708 (3.8)
Total weighted average shares
outstanding 18,936 20,969 (9.7)
Group 1 Automotive, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
Twelve Months Ended December 31,
2018 2017 % Increase/
(Decrease)
---
REVENUES:
New vehicle retail sales $
6,181,371 $
6,157,531 0.4
Used vehicle retail sales 3,166,070 2,798,986 13.1
Used vehicle wholesale sales 369,575 400,170 (7.6)
Parts and service 1,416,889 1,338,032 5.9
Finance, insurance and other,
net 467,453 429,002 9.0
Total revenues 11,601,358 11,123,721 4.3
COST OF SALES:
New vehicle retail sales 5,870,502 5,835,526 0.6
Used vehicle retail sales 2,980,142 2,621,431 13.7
Used vehicle wholesale sales 367,880 402,912 (8.7)
Parts and service 657,741 618,343 6.4
Total cost of sales 9,876,265 9,478,212 4.2
GROSS PROFIT 1,725,093 1,645,509 4.8
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 1,273,057 1,226,195 3.8
DEPRECIATION AND AMORTIZATION
EXPENSE 67,070 57,936 15.8
ASSET IMPAIRMENTS 43,883 19,506 125.0
OPERATING INCOME (LOSS) 341,083 341,872 (0.2)
OTHER EXPENSE:
Floorplan interest expense (59,882) (52,372) 14.3
Other interest expense, net (75,798) (70,497) 7.5
INCOME (LOSS) BEFORE INCOME
TAXES 205,403 219,003 (6.2)
BENEFIT (PROVISION) FOR INCOME
TAXES (47,631) (5,561) 756.5
NET INCOME (LOSS) $
157,772 $
213,442 (26.1)
Less: Earnings allocated to
participating securities $
5,414 $
7,511 (27.9)
Earnings available to diluted
common shares $
152,358 $
205,931 (26.0)
DILUTED EARNINGS PER SHARE $
7.83 $
10.08 (22.3)
Weighted average dilutive
common shares outstanding 19,461 20,425 (4.7)
Weighted average participating
securities 697 752 (7.3)
Total weighted average shares
outstanding 20,158 21,177 (4.8)
Group 1 Automotive, Inc.
Consolidated Balance Sheets
(Unaudited)
(Dollars in thousands)
As of December 31,
2018 2017 % Increase/
(Decrease)
---
ASSETS:
CURRENT ASSETS:
Cash and cash equivalents $
15,932 $
28,787 (44.7)
Contracts in transit and
vehicle receivables, net 265,660 306,433 (13.3)
Accounts and notes receivable,
net 193,981 188,611 2.8
Inventories, net 1,844,059 1,763,293 4.6
Prepaid expenses and other
current assets 82,734 42,062 96.7
Total current assets 2,402,366 2,329,186 3.1
PROPERTY AND EQUIPMENT, net 1,347,835 1,318,959 2.2
GOODWILL AND INTANGIBLE
FRANCHISE RIGHTS 1,223,555 1,198,666 2.1
OTHER ASSETS 27,319 24,254 12.6
Total assets $
5,001,075 $
4,871,065 2.7
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES:
Floorplan notes payable -
credit facility and other $
1,292,452 $
1,240,695 4.2
Offset account related to
floorplan notes payable -
credit facility (33,637) (86,547) (61.1)
Floorplan notes payable -
manufacturer affiliates 417,924 397,183 5.2
Offset account related to
floorplan notes payable -
manufacturer affiliates (100) (22,500) (99.6)
Current maturities of long-
term debt and short-term
financing 92,967 77,609 19.8
Current liabilities from
interest rate risk management
activities 115 1,996 (94.2)
Accounts payable 419,350 412,981 1.5
Accrued expenses 197,494 177,070 11.5
Total current liabilities 2,386,565 2,198,487 8.6
5.00% SENIOR NOTES (principal
of $550,000 at December 31,
2018 and December 31, 2017,
respectively) 543,730 542,063 0.3
5.25% SENIOR NOTES (principal
of $300,000 at December 31,
2018 and December 31, 2017,
respectively) 296,735 296,151 0.2
ACQUISITION LINE 31,842 26,988 18.0
REAL ESTATE RELATED AND OTHER
LONG-TERM DEBT, net of
current maturities 366,723 405,950 (9.7)
CAPITAL LEASE OBLIGATIONS
RELATED TO REAL ESTATE, net of
current maturities 42,459 47,032 (9.7)
DEFERRED INCOME TAXES 134,683 124,404 8.3
LIABILITIES FROM INTEREST RATE
RISK MANAGEMENT ACTIVITIES 1,696 8,583 (80.2)
OTHER LIABILITIES 100,948 97,125 3.9
STOCKHOLDERS' EQUITY:
Common stock 255 255
Additional paid-in capital 292,774 291,461 0.5
Retained earnings 1,394,817 1,246,323 11.9
Accumulated other comprehensive
income (loss) (137,772) (123,226) 11.8
Treasury stock (454,380) (290,531) 56.4
Total stockholders' equity 1,095,694 1,124,282 (2.5)
Total liabilities and
stockholders' equity $
5,001,075 $
4,871,065 2.7
Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2018 (%) 2017 (%) 2018 (%) 2017 (%)
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
---
Region Geographic Market
---
United States
Texas 38.6 39.2 36.4 37.0
Oklahoma 6.7 6.0 6.3 6.1
California 6.0 7.3 6.2 7.5
Massachusetts 4.7 4.5 4.9 4.6
Georgia 4.7 4.6 4.5 4.6
Florida 2.7 2.9 2.7 2.6
Louisiana 2.5 1.8 2.1 1.9
New Hampshire 1.8 1.9 1.8 2.0
South Carolina 1.9 1.6 1.6 1.4
New Jersey 1.7 1.6 1.6 1.7
Kansas 1.3 1.4 1.4 1.6
Mississippi 1.1 1.1 1.2 1.3
Alabama 0.7 0.8 0.7 1.0
Maryland 0.5 0.4 0.5 0.4
New Mexico 0.2 0.1 0.2 0.1
75.1 75.2 72.1 73.8
International
United Kingdom 19.0 19.5 22.7 21.3
Brazil 5.9 5.3 5.2 4.9
100.0 100.0 100.0 100.0
NEW VEHICLE UNIT SALES BRAND MIX:
---
Toyota/Lexus 25.9 25.4 25.2 25.3
Volkswagen/Audi/Porsche/SEAT/SKODA 11.4 13.7 13.4 13.8
BMW/MINI 11.8 12.4 12.0 12.7
Ford/Lincoln 10.2 11.4 10.9 11.5
Honda/Acura 10.7 9.2 9.7 9.2
Nissan 6.5 7.0 6.5 7.4
Chevrolet/GMC/Buick/Cadillac 7.1 6.3 6.1 6.2
Mercedes-Benz/smart/Sprinter 5.1 4.4 4.8 4.0
Chrysler/Dodge/Jeep/RAM 3.7 3.9 4.0 3.9
Hyundai/Kia 3.7 3.8 3.9 3.9
Jaguar/Land Rover 2.0 1.2 1.9 0.9
Other 1.9 1.3 1.6 1.2
100.0 100.0 100.0 100.0
Group 1 Automotive, Inc.
Additional Information - U.S.
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended December 31,
2018 2017 % Increase/
(Decrease)
---
REVENUES:
New vehicle retail
sales $
1,249,434 $
1,310,577 (4.7)
Used vehicle
retail sales 579,151 540,528 7.1
Used vehicle
wholesale sales 41,403 50,284 (17.7)
Total used 620,554 590,812 5.0
Parts and service 290,520 286,608 1.4
Finance, insurance
and other, net 106,032 99,200 6.9
Total $
2,266,540 $
2,287,197 (0.9)
GROSS MARGIN %:
New vehicle retail
sales 5.0 5.3
Used vehicle
retail sales 5.6 5.9
Used vehicle
wholesale sales 0.9 (4.5)
Total used 5.2 5.0
Parts and service 52.2 53.2
Finance, insurance
and other, net 100.0 100.0
Total 15.6 15.3
GROSS PROFIT:
New vehicle retail
sales $
62,287 $
69,455 (10.3)
Used vehicle
retail sales 32,172 31,931 0.8
Used vehicle
wholesale sales 364 (2,257) 116.1
Total used 32,536 29,674 9.6
Parts and service 151,625 152,349 (0.5)
Finance, insurance
and other, net 106,032 99,200 6.9
Total $
352,480 $
350,678 0.5
UNITS SOLD:
Retail new
vehicles sold 31,754 33,608 (5.5)
Retail used
vehicles sold 27,887 24,735 12.7
Wholesale used
vehicles sold 6,832 8,194 (16.6)
Total used 34,719 32,929 5.4
AVERAGE RETAIL SALES PRICE:
New vehicle retail $
39,347 $
38,996 0.9
Used vehicle
retail $
20,768 $
21,853 (5.0)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $
1,962 $
2,067 (5.1)
Used vehicle
retail sales 1,154 1,291 (10.6)
Used vehicle
wholesale sales 53 (275) 119.3
Total used 937 901 4.0
Finance, insurance
and other, net
(per retail unit) $
1,778 $
1,700 4.6
OTHER:
Adjusted Finance,
insurance and
other revenue,
net (1), (2) $
104,957 $
99,200 5.8
Adjusted Total
Revenue (1) $
2,265,465 $
2,287,197 (1.0)
Adjusted Total
Gross Profit (1) $
351,405 $
350,678 0.2
Adjusted Total
Gross Margin (1) 15.5 15.3
Adjusted Finance,
insurance and
other, net (per
retail unit) (1) $
1,760 $
1,700 3.5
SG&A expenses $
252,634 $
242,070 4.4
Adjusted SG&A
expenses (1) $
251,020 $
242,070 3.7
SG&A as % revenues 11.1 10.6
Adjusted SG&A as %
revenues (1) 11.1 10.6
SG&A as % gross
profit 71.7 69.0
Adjusted SG&A as %
gross profit (1) 71.4 69.0
Operating margin % 3.1 4.1
Adjusted operating
margin % (1) 3.8 4.2
Pretax margin % 1.7 2.8
Adjusted pretax
margin % (1) 2.5 2.9
INTEREST EXPENSE:
Floorplan interest
expense $
(14,723) $
(12,267) 20.0
Floorplan
assistance 12,621 12,952 (2.6)
Net floorplan
income (expense) $
(2,102) $
685 (406.9)
Other interest
expense, net $
(16,464) $
(16,922) (2.7)
(1) See the section of this
release entitled "Non-GAAP
Financial Measures" and the
tables attached hereto for
information regarding certain
selected items that the Company
believes impact comparability of
financial results between
reporting periods, as well as
for information regarding non-
GAAP financial measures and
their reconciliation to the most
directly comparable measures as
reported in accordance with U.S.
GAAP.
(2) Finance, insurance and other
revenue represents fees earned
for the financing of vehicle
sales transactions and from the
sale of insurance and vehicle
service contracts. Such amounts
are reported net of estimated
amounts to be charged back in
the future. As a result,
finance, insurance and other
revenue and gross profit are the
same.
Group 1 Automotive, Inc.
Additional Information - U.S.
(Unaudited)
(Dollars in thousands, except per unit amounts)
Twelve Months Ended December 31,
2018 2017 % Increase/
(Decrease)
---
REVENUES:
New vehicle retail
sales $
4,682,820 $
4,768,864 (1.8)
Used vehicle
retail sales 2,306,999 2,160,699 6.8
Used vehicle
wholesale sales 178,910 250,668 (28.6)
Total used 2,485,909 2,411,367 3.1
Parts and service 1,153,257 1,124,380 2.6
Finance, insurance
and other, net 401,271 375,954 6.7
Total $
8,723,257 $
8,680,565 0.5
GROSS MARGIN %:
New vehicle retail
sales 4.9 5.1
Used vehicle
retail sales 6.1 6.7
Used vehicle
wholesale sales 2.1 (1.0)
Total used 5.9 5.9
Parts and service 53.4 53.6
Finance, insurance
and other, net 100.0 100.0
Total 15.9 15.7
GROSS PROFIT:
New vehicle retail
sales $
229,058 $
244,286 (6.2)
Used vehicle
retail sales 141,707 144,529 (2.0)
Used vehicle
wholesale sales 3,751 (2,427) 254.6
Total used 145,458 142,102 2.4
Parts and service 615,519 602,972 2.1
Finance, insurance
and other, net 401,271 375,954 6.7
Total $
1,391,306 $
1,365,314 1.9
UNITS SOLD:
Retail new
vehicles sold 122,873 127,141 (3.4)
Retail used
vehicles sold 111,806 101,170 10.5
Wholesale used
vehicles sold 30,625 37,662 (18.7)
Total used 142,431 138,832 2.6
AVERAGE RETAIL SALES PRICE:
New vehicle retail $
38,111 $
37,508 1.6
Used vehicle
retail $
20,634 $
21,357 (3.4)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $
1,864 $
1,921 (3.0)
Used vehicle
retail sales 1,267 1,429 (11.3)
Used vehicle
wholesale sales 122 (64) 290.6
Total used 1,021 1,024 (0.3)
Finance, insurance
and other, net
(per retail unit) $
1,710 $
1,647 3.8
OTHER:
Adjusted Finance,
insurance and
other revenue,
net (1), (2) $
400,196 $
382,504 4.6
Adjusted Total
revenue (1) $
8,722,182 $
8,687,115 0.4
Adjusted Total
gross profit (1) $
1,390,231 $
1,371,864 1.3
Adjusted Total
gross margin (1) 15.9 15.8
Adjusted Finance,
insurance and
other, net (per
retail unit) (1) $
1,705 $
1,675 1.8
SG&A expenses $
982,064 $
983,974 (0.2)
Adjusted SG&A
expenses (1) $
999,548 $
975,497 2.5
SG&A as % revenues 11.3 11.3
Adjusted SG&A as %
revenues (1) 11.5 11.2
SG&A as % gross
profit 70.6 72.1
Adjusted SG&A as %
gross profit (1) 71.9 71.1
Operating margin % 3.6 3.7
Adjusted operating
margin % (1) 3.9 4.0
Pretax margin % 2.2 2.4
Adjusted pretax
margin % (1) 2.5 2.7
INTEREST EXPENSE:
Floorplan interest
expense $
(52,773) $
(47,221) 11.8
Floorplan
assistance 46,313 47,984 (3.5)
Net floorplan
income (expense) $
(6,460) $
763 (946.7)
Other interest
expense, net $
(68,085) $
(66,493) 2.4
(1) See the section of this
release entitled "Non-GAAP
Financial Measures" and the
tables attached hereto for
information regarding certain
selected items that the Company
believes impact comparability of
financial results between
reporting periods, as well as
for information regarding non-
GAAP financial measures and
their reconciliation to the most
directly comparable measures as
reported in accordance with U.S.
GAAP.
(2) Finance, insurance and other
revenue represents fees earned
for the financing of vehicle
sales transactions and from the
sale of insurance and vehicle
service contracts. Such amounts
are reported net of estimated
amounts to be charged back in
the future. As a result,
finance, insurance and other
revenue and gross profit are the
same.
Group 1 Automotive, Inc.
Additional Information - U.K.
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended December 31,
2018 2017 % Increase/
Constant Currency (1)
(Decrease) % Increase/(Decrease)
---
REVENUES:
New vehicle retail
sales $
246,050 $
267,785 (8.1) (5.3)
Used vehicle
retail sales 171,004 144,415 18.4 21.9
Used vehicle
wholesale sales 39,375 37,243 5.7 8.7
Total used 210,379 181,658 15.8 19.2
Parts and service 52,640 45,141 16.6 20.1
Finance, insurance
and other, net 14,955 13,263 12.8 17.0
Total $
524,024 $
507,847 3.2 6.3
GROSS MARGIN %:
New vehicle retail
sales 5.7 5.7
Used vehicle
retail sales 4.5 4.6
Used vehicle
wholesale sales (1.3) (0.9)
Total used 3.4 3.5
Parts and service 54.8 56.6
Finance, insurance
and other, net 100.0 100.0
Total 12.4 11.9
GROSS PROFIT:
New vehicle retail
sales $
14,033 $
15,231 (7.9) (4.2)
Used vehicle
retail sales 7,610 6,696 13.6 16.8
Used vehicle
wholesale sales (516) (322) (60.2) (66.2)
Total used 7,094 6,374 11.3 14.3
Parts and service 28,843 25,559 12.8 16.2
Finance, insurance
and other, net 14,955 13,263 12.8 17.0
Total $
64,925 $
60,427 7.4 11.1
UNITS SOLD:
Retail new
vehicles sold 8,019 8,750 (8.4)
Retail used
vehicles sold 7,148 6,188 15.5
Wholesale used
vehicles sold 4,742 5,089 (6.8)
Total used 11,890 11,277 5.4
AVERAGE RETAIL SALES PRICE:
New vehicle retail $
30,683 $
30,604 0.3 3.3
Used vehicle
retail $
23,923 $
23,338 2.5 5.5
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $
1,750 $
1,741 0.5 4.5
Used vehicle
retail sales 1,065 1,082 (1.6) 1.1
Used vehicle
wholesale sales (109) (63) (73.0) (78.3)
Total used 597 565 5.7 8.4
Finance, insurance
and other, net
(per retail unit) $
986 $
888 11.0 15.3
OTHER:
SG&A expenses $
58,845 $
54,095 8.8 12.3
SG&A as % revenues 11.2 10.7
SG&A as % gross
profit 90.6 89.5
Operating margin % 0.4 0.8
Adjusted operating
margin % (1) 0.5 0.8
Pretax margin % (0.2) 0.3
Adjusted pretax
margin % (1) (0.1) 0.3
INTEREST EXPENSE:
Floorplan interest
expense $
(1,635) $
(1,304) 25.4 29.5
Floorplan
assistance 141 237 (40.5) (38.6)
Net floorplan
expense $
(1,494) $
(1,067) 40.0 44.6
Other interest
expense, net $
(1,782) $
(1,278) 39.4 43.9
(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)
Twelve Months Ended December 31,
2018 2017 % Increase/ Constant Currency
(1)
(Decrease) % Increase/(Decrease)
---
REVENUES:
New vehicle retail
sales $
1,217,135 $
1,092,612 11.4 7.3
Used vehicle
retail sales 771,719 546,266 41.3 36.5
Used vehicle
wholesale sales 173,783 136,847 27.0 22.6
Total used 945,502 683,113 38.4 33.7
Parts and service 217,594 165,755 31.3 26.9
Finance, insurance
and other, net 57,154 44,523 28.4 24.7
Total $
2,437,385 $
1,986,003 22.7 18.4
GROSS MARGIN %:
New vehicle retail
sales 5.2 5.5
Used vehicle
retail sales 5.0 4.8
Used vehicle
wholesale sales (1.6) (0.9)
Total used 3.8 3.7
Parts and service 56.5 57.3
Finance, insurance
and other, net 100.0 100.0
Total 11.5 11.3
GROSS PROFIT:
New vehicle retail
sales $
63,579 $
60,581 4.9 1.6
Used vehicle
retail sales 38,898 26,275 48.0 42.9
Used vehicle
wholesale sales (2,704) (1,173) (130.5) (127.1)
Total used 36,194 25,102 44.2 38.9
Parts and service 122,975 95,047 29.4 25.1
Finance, insurance
and other, net 57,154 44,523 28.4 24.7
Total $
279,902 $
225,253 24.3 20.3
UNITS SOLD:
Retail new
vehicles sold 38,716 36,571 5.9
Retail used
vehicles sold 31,966 24,623 29.8
Wholesale used
vehicles sold 21,666 18,334 18.2
Total used 53,632 42,957 24.9
AVERAGE RETAIL SALES PRICE:
New vehicle retail $
31,438 $
29,876 5.2 1.4
Used vehicle
retail $
24,142 $
22,185 8.8 5.2
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $
1,642 $
1,657 (0.9) (4.0)
Used vehicle
retail sales 1,217 1,067 14.1 10.0
Used vehicle
wholesale sales (125) (64) (95.3) (92.2)
Total used 675 584 15.6 11.3
Finance, insurance
and other, net
(per retail unit) $
809 $
728 11.1 8.0
OTHER:
SG&A expenses $
240,403 $
191,570 25.5 21.4
Adjusted SG&A
expenses (1) $
240,403 $
191,282 25.7 21.6
SG&A as % revenues 9.9 9.6
Adjusted SG&A as %
revenues (1) 9.9 9.6
SG&A as % gross
profit 85.9 85.0
Adjusted SG&A as %
gross profit (1) 85.9 84.9
Operating margin % 1.1 1.3
Adjusted operating
margin % (1) 1.1 1.3
Pretax margin % 0.5 0.9
Adjusted pretax
margin % (1) 0.6 0.9
INTEREST EXPENSE:
Floorplan interest
expense $
(6,322) $
(4,727) 33.7 29.6
Floorplan
assistance 965 951 1.5 (2.3)
Net floorplan
expense $
(5,357) $
(3,776) 41.9 37.7
Other interest
expense, net $
(6,797) $
(3,664) 85.5 80.7
(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 December 31,
2018 2017 % Increase/
Constant Currency (2)
(Decrease) % Increase/(Decrease)
---
REVENUES:
New vehicle retail
sales $
77,229 $
82,947 (6.9) 9.1
Used vehicle
retail sales 21,087 24,129 (12.6) 2.4
Used vehicle
wholesale sales 5,344 4,282 24.8 46.5
Total used 26,431 28,411 (7.0) 9.1
Parts and service 11,584 11,761 (1.5) 15.4
Finance, insurance
and other, net 3,004 2,242 34.0 56.9
Total $
118,248 $
125,361 (5.7) 10.5
GROSS MARGIN %:
New vehicle retail
sales 6.4 5.8
Used vehicle
retail sales 6.1 7.8
Used vehicle
wholesale sales 5.0 4.4
Total used 5.9 7.3
Parts and service 44.6 45.9
Finance, insurance
and other, net 100.0 100.0
Total 12.4 11.6
GROSS PROFIT:
New vehicle retail
sales $
4,938 $
4,849 1.8 19.0
Used vehicle
retail sales 1,282 1,887 (32.1) (20.4)
Used vehicle
wholesale sales 265 189 40.2 64.6
Total used 1,547 2,076 (25.5) (12.7)
Parts and service 5,172 5,403 (4.3) 12.2
Finance, insurance
and other, net 3,004 2,242 34.0 56.9
Total $
14,661 $
14,570 0.6 17.8
UNITS SOLD:
Retail new
vehicles sold 2,499 2,355 6.1
Retail used
vehicles sold 1,064 1,092 (2.6)
Wholesale used
vehicles sold 515 290 77.6
Total used 1,579 1,382 14.3
AVERAGE RETAIL SALES PRICE:
New vehicle retail $
30,904 $
35,222 (12.3) 2.8
Used vehicle
retail $
19,819 $
22,096 (10.3) 5.1
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $
1,976 $
2,059 (4.0) 12.2
Used vehicle
retail sales 1,205 1,728 (30.3) (18.3)
Used vehicle
wholesale sales 515 652 (21.0) (7.3)
Total used 980 1,502 (34.8) (23.6)
Finance, insurance
and other, net
(per retail unit) $
843 $
650 29.7 51.8
OTHER:
SG&A expenses $
12,368 $
13,356 (7.4) 8.5
Adjusted SG&A
expenses (1) $
12,368 $
12,881 (4.0) 12.6
SG&A as % revenues 10.5 10.7
Adjusted SG&A as %
revenues (1) 10.5 10.3
SG&A as % gross
profit 84.4 91.7
Adjusted SG&A as %
gross profit (1) 84.4 88.4
Operating margin % 1.6 (4.7)
Adjusted operating
margin % (1) 1.6 1.1
Pretax margin % 1.3 (4.9)
Adjusted pretax
margin % (1) 1.3 0.9
INTEREST EXPENSE:
Floorplan interest
expense $
(189) $
(142) 33.1 55.4
Floorplan
assistance -
Net floorplan
expense $
(189) $
(142) 33.1 55.4
Other interest
expense, net $
(178) $
(109) 63.3 90.0
(1) See the section of this
release entitled "Non-GAAP
Financial Measures" and the
tables attached hereto for
information regarding certain
selected items that the Company
believes impact comparability of
financial results between
reporting periods, as well as
for information regarding non-
GAAP financial measures and
their reconciliation to the most
directly comparable measures as
reported in accordance with U.S.
GAAP.
Group 1 Automotive, Inc.
Additional Information - Brazil
(Unaudited)
(Dollars in thousands, except per unit amounts)
Twelve Months Ended December 31,
2018 2017 % Increase/ Constant Currency
(1)
(Decrease) % Increase/(Decrease)
---
REVENUES:
New vehicle retail
sales $
281,416 $
296,055 (4.9) 8.5
Used vehicle
retail sales 87,352 92,021 (5.1) 7.9
Used vehicle
wholesale sales 16,882 12,655 33.4 53.9
Total used 104,234 104,676 (0.4) 13.4
Parts and service 46,038 47,897 (3.9) 9.7
Finance, insurance
and other, net 9,028 8,525 5.9 22.0
Total $
440,716 $
457,153 (3.6) 10.0
GROSS MARGIN %:
New vehicle retail
sales 6.5 5.8
Used vehicle
retail sales 6.1 7.3
Used vehicle
wholesale sales 3.8 6.8
Total used 5.7 7.3
Parts and service 44.9 45.2
Finance, insurance
and other, net 100.0 100.0
Total 12.2 12.0
GROSS PROFIT:
New vehicle retail
sales $
18,232 $
17,138 6.4 22.4
Used vehicle
retail sales 5,323 6,751 (21.2) (10.4)
Used vehicle
wholesale sales 648 858 (24.5) (13.0)
Total used 5,971 7,609 (21.5) (10.7)
Parts and service 20,654 21,670 (4.7) 8.7
Finance, insurance
and other, net 9,028 8,525 5.9 22.0
Total $
53,885 $
54,942 (1.9) 12.3
UNITS SOLD:
Retail new
vehicles sold 8,928 8,488 5.2
Retail used
vehicles sold 4,227 4,140 2.1
Wholesale used
vehicles sold 1,596 1,148 39.0
Total used 5,823 5,288 10.1
AVERAGE RETAIL SALES PRICE:
New vehicle retail $
31,521 $
34,879 (9.6) 3.2
Used vehicle
retail $
20,665 $
22,227 (7.0) 5.6
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $
2,042 $
2,019 1.1 16.3
Used vehicle
retail sales 1,259 1,631 (22.8) (12.3)
Used vehicle
wholesale sales 406 747 (45.6) (37.4)
Total used 1,025 1,439 (28.8) (18.9)
Finance, insurance
and other, net
(per retail unit) $
686 $
675 1.6 17.1
OTHER:
SG&A expenses $
50,590 $
50,651 (0.1) 15.0
Adjusted SG&A
expenses (1) $
46,920 $
50,176 (6.5) 6.9
SG&A as % revenues 11.5 11.1
Adjusted SG&A as %
revenues (1) 10.6 11.0
SG&A as % gross
profit 93.9 92.2
Adjusted SG&A as %
gross profit (1) 87.1 91.3
Operating margin % 0.4 (0.9)
Adjusted operating
margin % (1) 1.2 0.7
Pretax margin % - (1.0)
Adjusted pretax
margin % (1) 0.8 0.6
INTEREST EXPENSE:
Floorplan interest
expense $
(787) $
(424) 85.6 110.6
Floorplan
assistance -
Net floorplan
expense $
(787) $
(424) 85.6 110.6
Other interest
expense, net $
(916) $
(340) 169.4 199.6
(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 - Consolidated
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended December 31,
2018 2017 % Increase/ Constant Currency
(1)
(Decrease) % Increase/(Decrease)
---
REVENUES:
New vehicle retail
sales $
1,572,713 $
1,661,309 (5.3) (4.1)
Used vehicle
retail sales 771,242 709,072 8.8 10.0
Used vehicle
wholesale sales 86,122 91,809 (6.2) (4.0)
Total used 857,364 800,881 7.1 8.4
Parts and service 354,744 343,510 3.3 4.3
Finance, insurance
and other, net 123,991 114,705 8.1 9.0
Total $
2,908,812 $
2,920,405 (0.4) 0.8
GROSS MARGIN %:
New vehicle retail
sales 5.2 5.4
Used vehicle
retail sales 5.3 5.7
Used vehicle
wholesale sales 0.1 (2.6)
Total used 4.8 4.8
Parts and service 52.3 53.4
Finance, insurance
and other, net 100.0 100.0
Total 14.9 14.6
GROSS PROFIT:
New vehicle retail
sales $
81,258 $
89,535 (9.2) (7.7)
Used vehicle
retail sales 41,064 40,514 1.4 2.4
Used vehicle
wholesale sales 113 (2,390) 104.7 105.9
Total used 41,177 38,124 8.0 9.2
Parts and service 185,640 183,311 1.3 2.2
Finance, insurance
and other, net 123,991 114,705 8.1 9.0
Total $
432,066 $
425,675 1.5 2.6
UNITS SOLD:
Retail new
vehicles sold 42,272 44,713 (5.5)
Retail used
vehicles sold 36,099 32,015 12.8
Wholesale used
vehicles sold 12,089 13,573 (10.9)
Total used 48,188 45,588 5.7
AVERAGE RETAIL SALES PRICE:
New vehicle retail $
37,205 $
37,155 0.1 1.5
Used vehicle
retail $
21,365 $
22,148 (3.5) (2.5)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $
1,922 $
2,002 (4.0) (2.4)
Used vehicle
retail sales 1,138 1,265 (10.0) (9.2)
Used vehicle
wholesale sales 9 (176) 105.1 106.6
Total used 855 836 2.3 3.3
Finance, insurance
and other, net
(per retail unit) $
1,582 $
1,495 5.8 6.8
OTHER:
Adjusted Finance,
insurance and
other revenue,
net (1), (2) $
122,916 $
114,705 7.2 8.1
Adjusted Total
revenue (1) $
2,907,737 $
2,920,405 (0.4) 0.8
Adjusted Total
gross profit (1) $
430,991 $
425,675 1.2 2.3
Adjusted Total
gross margin (1) 14.8 14.6
Adjusted Finance,
insurance and
other, net (per
retail unit) (1) $
1,568 $
1,495 4.9 5.8
SG&A expenses $
323,847 $
309,521 4.6 5.9
Adjusted SG&A
expenses (1) $
322,233 $
309,046 4.3 5.6
SG&A as % revenues 11.1 10.6
Adjusted SG&A as %
revenues (1) 11.1 10.6
SG&A as % gross
profit 75.0 72.7
Adjusted SG&A as %
gross profit (1) 74.8 72.6
Operating margin % 2.6 3.1
Adjusted operating
margin % (1) 3.2 3.5
Pretax margin % 1.4 2.0
Adjusted pretax
margin % (1) 1.9 2.4
INTEREST EXPENSE:
Floorplan interest
expense $
(16,547) $
(13,713) 20.7 21.3
Floorplan
assistance 12,761 13,189 (3.2) (3.2)
Net floorplan
expense $
(3,786) $
(524) 622.5 638.1
Other interest
expense, net $
(18,424) $
(18,309) (0.6) 1.1
(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 back in
the future. As a result,
finance, insurance and other
revenue and gross profit are the
same.
Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
(Dollars in thousands, except per unit amounts)
Twelve Months Ended December 31,
2018 2017 % Increase/ Constant Currency
(1)
(Decrease) % Increase/(Decrease)
---
REVENUES:
New vehicle retail
sales $
6,181,371 $
6,157,531 0.4 0.3
Used vehicle
retail sales 3,166,070 2,798,986 13.1 12.6
Used vehicle
wholesale sales 369,575 400,170 (7.6) (8.5)
Total used 3,535,645 3,199,156 10.5 10.0
Parts and service 1,416,889 1,338,032 5.9 5.8
Finance, insurance
and other, net 467,453 429,002 9.0 8.9
Total $
11,601,358 $
11,123,721 4.3 4.1
GROSS MARGIN %:
New vehicle retail
sales 5.0 5.2
Used vehicle
retail sales 5.9 6.3
Used vehicle
wholesale sales 0.5 (0.7)
Total used 5.3 5.5
Parts and service 53.6 53.8
Finance, insurance
and other, net 100.0 100.0
Total 14.9 14.8
GROSS PROFIT:
New vehicle retail
sales $
310,869 $
322,005 (3.5) (3.2)
Used vehicle
retail sales 185,928 177,555 4.7 4.4
Used vehicle
wholesale sales 1,695 (2,742) 161.8 166.9
Total used 187,623 174,813 7.3 7.0
Parts and service 759,148 719,689 5.5 5.3
Finance, insurance
and other, net 467,453 429,002 9.0 8.9
Total $
1,725,093 $
1,645,509 4.8 4.8
UNITS SOLD:
Retail new
vehicles sold 170,517 172,200 (1.0)
Retail used
vehicles sold 147,999 129,933 13.9
Wholesale used
vehicles sold 53,887 57,144 (5.7)
Total used 201,886 187,077 7.9
AVERAGE RETAIL SALES PRICE:
New vehicle retail $
36,251 $
35,758 1.4 1.3
Used vehicle
retail $
21,393 $
21,542 (0.7) (1.1)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $
1,823 $
1,870 (2.5) (2.3)
Used vehicle
retail sales 1,256 1,367 (8.1) (8.4)
Used vehicle
wholesale sales 31 (48) 164.6 171.0
Total used 929 934 (0.5) (0.8)
Finance, insurance
and other, net
(per retail unit) $
1,468 $
1,420 3.4 3.3
OTHER:
Adjusted Finance,
insurance and
other revenue,
net (1), (2) $
466,378 $
435,552 7.1 7.0
Adjusted Total
revenue (1) $
11,600,283 $
11,130,271 4.2 4.0
Adjusted Total
gross profit (1) $
1,724,018 $
1,652,059 4.4 4.3
Adjusted Total
gross margin (1) 14.9 14.8
Adjusted Finance,
insurance and
other, net (per
retail unit) (1) $
1,464 $
1,442 1.5 1.5
SG&A expenses $
1,273,057 $
1,226,195 3.8 3.8
Adjusted SG&A
expenses (1) $
1,286,871 $
1,216,955 5.7 5.7
SG&A as % revenues 11.0 11.0
Adjusted SG&A as %
revenues (1) 11.1 10.9
SG&A as % gross
profit 73.8 74.5
Adjusted SG&A as %
gross profit (1) 74.6 73.7
Operating margin % 2.9 3.1
Adjusted operating
margin % (1) 3.2 3.4
Pretax margin % 1.8 2.0
Adjusted pretax
margin % (1) 2.0 2.3
INTEREST EXPENSE:
Floorplan interest
expense $
(59,882) $
(52,372) 14.3 14.2
Floorplan
assistance 47,277 48,935 (3.4) (3.5)
Net floorplan
expense $
(12,605) $
(3,437) 266.7 265.1
Other interest
expense, net $
(75,798) $
(70,497) 7.5 7.4
(1) See the section of this
release entitled "Non-GAAP
Financial Measures" and the
tables attached hereto for
information regarding certain
selected items that the Company
believes impact comparability of
financial results between
reporting periods, as well as
for information regarding non-
GAAP financial measures and
their reconciliation to the most
directly comparable measures as
reported in accordance with U.S.
GAAP.
(2) Finance, insurance and other
revenue represents fees earned
for the financing of vehicle
sales transactions and from the
sale of insurance and vehicle
service contracts. Such amounts
are reported net of estimated
amounts to be charged back in
the future. As a result,
finance, insurance and other
revenue and gross profit are the
same.
Group 1 Automotive, Inc.
Additional Information - Same Store U.S. (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended December 31,
2018 2017 % Increase/
(Decrease)
---
REVENUES:
New vehicle retail
sales $
1,219,825 $
1,286,220 (5.2)
Used vehicle
retail sales 564,987 531,511 6.3
Used vehicle
wholesale sales 40,580 49,224 (17.6)
Total used 605,567 580,735 4.3
Parts and service 287,610 281,730 2.1
Finance, insurance
and other, net 103,412 97,593 6.0
Total $
2,216,414 $
2,246,278 (1.3)
GROSS MARGIN %:
New vehicle retail
sales 5.0 5.3
Used vehicle
retail sales 5.6 5.9
Used vehicle
wholesale sales 0.9 (4.5)
Total used 5.2 5.0
Parts and service 52.1 53.2
Finance, insurance
and other, net 100.0 100.0
Total 15.6 15.3
GROSS PROFIT:
New vehicle retail
sales $
60,834 $
67,832 (10.3)
Used vehicle
retail sales 31,373 31,391 (0.1)
Used vehicle
wholesale sales 352 (2,191) 116.1
Total used 31,725 29,200 8.6
Parts and service 149,750 149,765
Finance, insurance
and other, net 103,412 97,593 6.0
Total $
345,721 $
344,390 0.4
UNITS SOLD:
Retail new
vehicles sold 30,835 33,117 (6.9)
Retail used
vehicles sold 27,097 24,397 11.1
Wholesale used
vehicles sold 6,627 8,083 (18.0)
Total used 33,724 32,480 3.8
AVERAGE RETAIL SALES PRICE:
New vehicle retail $
39,560 $
38,839 1.9
Used vehicle
retail $
20,851 $
21,786 (4.3)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $
1,973 $
2,048 (3.7)
Used vehicle
retail sales 1,158 1,287 (10.0)
Used vehicle
wholesale sales 53 (271) 119.6
Total used 941 899 4.7
Finance, insurance
and other, net
(per retail unit) $
1,785 $
1,697 5.2
OTHER:
Adjusted Finance,
insurance and
other revenue,
net (2), (3) $
102,337 $
97,593 4.9
Adjusted Total
revenue (2) $
2,215,339 $
2,246,278 (1.4)
Adjusted Total
gross profit (2) $
344,646 $
344,390 0.1
Adjusted Total
gross margin (2) 15.6 15.3
Adjusted Finance,
insurance and
other, net (per
retail unit) (2) $
1,767 $
1,697 4.1
SG&A expenses $
243,619 $
237,470 2.6
Adjusted SG&A
expenses (2) $
242,332 $
237,470 2.0
SG&A as % revenues 11.0 10.6
Adjusted SG&A as %
revenues (2) 10.9 10.6
SG&A as % gross
profit 70.5 69.0
Adjusted SG&A as %
gross profit (2) 70.3 69.0
Operating margin % 3.3 4.2
Adjusted operating
margin % (2) 4.0 4.2
(1) Same Store amounts include
the results for the identical
months in each period presented
in the comparison, commencing
with the first full month we
owned the dealership and, in the
case of dispositions, ending
with the last full month we
owned it. Same Store results
also include the activities of
our corporate office.
(2) See the section of this
release entitled "Non-GAAP
Financial Measures" and the
tables attached hereto for
information regarding certain
selected items that the Company
believes impact comparability of
financial results between
reporting periods, as well as
for information regarding non-
GAAP financial measures and
their reconciliation to the most
directly comparable measures as
reported in accordance with U.S.
GAAP.
(3) Finance, insurance and other
revenue represents fees earned
for the financing of vehicle
sales transactions and from the
sale of insurance and vehicle
service contracts. Such amounts
are reported net of estimated
amounts to be charged back in
the future. As a result,
finance, insurance and other
revenue and gross profit are the
same.
Group 1 Automotive, Inc.
Additional Information - Same Store U.S. (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Twelve Months Ended December 31,
2018 2017 % Increase/
(Decrease)
---
REVENUES:
New vehicle retail
sales $
4,577,539 $
4,722,200 (3.1)
Used vehicle
retail sales 2,255,446 2,141,315 5.3
Used vehicle
wholesale sales 173,968 247,852 (29.8)
Total used 2,429,414 2,389,167 1.7
Parts and service 1,137,841 1,113,635 2.2
Finance, insurance
and other, net 391,730 371,932 5.3
Total $
8,536,524 $
8,596,934 (0.7)
GROSS MARGIN %:
New vehicle retail
sales 4.9 5.1
Used vehicle
retail sales 6.1 6.7
Used vehicle
wholesale sales 2.2 (1.0)
Total used 5.9 5.9
Parts and service 53.3 53.6
Finance, insurance
and other, net 100.0 100.0
Total 16.0 15.7
GROSS PROFIT:
New vehicle retail
sales $
223,295 $
241,341 (7.5)
Used vehicle
retail sales 138,623 143,287 (3.3)
Used vehicle
wholesale sales 3,747 (2,411) 255.4
Total used 142,370 140,876 1.1
Parts and service 606,405 597,184 1.5
Finance, insurance
and other, net 391,730 371,932 5.3
Total $
1,363,800 $
1,351,333 0.9
UNITS SOLD:
Retail new
vehicles sold 120,090 126,205 (4.8)
Retail used
vehicles sold 109,332 100,475 8.8
Wholesale used
vehicles sold 29,915 37,383 (20.0)
Total used 139,247 137,858 1.0
AVERAGE RETAIL SALES PRICE:
New vehicle retail $
38,118 $
37,417 1.9
Used vehicle
retail $
20,629 $
21,312 (3.2)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $
1,859 $
1,912 (2.8)
Used vehicle
retail sales 1,268 1,426 (11.1)
Used vehicle
wholesale sales 125 (64) 295.3
Total used 1,022 1,022
Finance, insurance
and other, net
(per retail unit) $
1,707 $
1,641 4.0
OTHER:
Adjusted Finance,
insurance and
other revenue,
net (2), (3) $
390,655 $
378,482 3.2
Adjusted Total
revenue (2) $
8,535,449 $
8,603,484 (0.8)
Adjusted Total
gross profit (2) $
1,362,725 $
1,357,883 0.4
Adjusted Total
gross margin (2) 16.0 15.8
Adjusted Finance,
insurance and
other, net (per
retail unit) (2) $
1,703 $
1,670 2.0
SG&A expenses $
979,531 $
973,412 0.6
Adjusted SG&A
expenses (2) $
974,201 $
964,935 1.0
SG&A as % revenues 11.5 11.3
Adjusted SG&A as %
revenues (2) 11.4 11.2
SG&A as % gross
profit 71.8 72.0
Adjusted SG&A as %
gross profit (2) 71.5 71.1
Operating margin % 3.4 3.7
Adjusted operating
margin % (2) 3.9 4.0
(1) Same Store amounts include
the results for the identical
months in each period presented
in the comparison, commencing
with the first full month we
owned the dealership and, in the
case of dispositions, ending
with the last full month we
owned it. Same Store results
also include the activities of
our corporate office.
(2) See the section of this
release entitled "Non-GAAP
Financial Measures" and the
tables attached hereto for
information regarding certain
selected items that the Company
believes impact comparability of
financial results between
reporting periods, as well as
for information regarding non-
GAAP financial measures and
their reconciliation to the most
directly comparable measures as
reported in accordance with U.S.
GAAP.
(3) Finance, insurance and other
revenue represents fees earned
for the financing of vehicle
sales transactions and from the
sale of insurance and vehicle
service contracts. Such amounts
are reported net of estimated
amounts to be charged back in
the future. As a result,
finance, insurance and other
revenue and gross profit are the
same.
Group 1 Automotive, Inc.
Additional Information - Same Store U.K. (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended December 31,
2018 2017 % Increase/
Constant Currency (2)
(Decrease) % Increase/(Decrease)
---
REVENUES:
New vehicle retail
sales $
218,569 $
266,779 (18.1) (15.6)
Used vehicle
retail sales 150,220 143,577 4.6 7.7
Used vehicle
wholesale sales 36,527 37,013 (1.3) 1.5
Total used 186,747 180,590 3.4 6.4
Parts and service 46,881 44,619 5.1 8.2
Finance, insurance
and other, net 12,449 13,171 (5.5) (2.0)
Total $
464,646 $
505,159 (8.0) (5.2)
GROSS MARGIN %:
New vehicle retail
sales 6.2 5.7
Used vehicle
retail sales 4.5 4.6
Used vehicle
wholesale sales (0.9) (0.9)
Total used 3.5 3.5
Parts and service 53.9 56.6
Finance, insurance
and other, net 100.0 100.0
Total 12.4 11.9
GROSS PROFIT:
New vehicle retail
sales $
13,548 $
15,202 (10.9) (7.3)
Used vehicle
retail sales 6,824 6,669 2.3 5.2
Used vehicle
wholesale sales (346) (325) (6.5) (10.9)
Total used 6,478 6,344 2.1 4.9
Parts and service 25,265 25,247 0.1 3.1
Finance, insurance
and other, net 12,449 13,171 (5.5) (2.0)
Total $
57,740 $
59,964 (3.7) (0.5)
UNITS SOLD:
Retail new
vehicles sold 7,270 8,694 (16.4)
Retail used
vehicles sold 6,246 6,121 2.0
Wholesale used
vehicles sold 4,366 5,031 (13.2)
Total used 10,612 11,152 (4.8)
AVERAGE RETAIL SALES PRICE:
New vehicle retail $
30,065 $
30,685 (2.0) 1.0
Used vehicle
retail $
24,051 $
23,456 2.5 5.6
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $
1,864 $
1,749 6.6 10.8
Used vehicle
retail sales 1,093 1,090 0.3 3.1
Used vehicle
wholesale sales (79) (65) (21.5) (27.8)
Total used 610 569 7.2 10.2
Finance, insurance
and other, net
(per retail unit) $
921 $
889 3.6 7.4
OTHER:
SG&A expenses $
52,863 $
53,493 (1.2) 2.0
SG&A as % revenues 11.4 10.6
SG&A as % gross
profit 91.6 89.2
Operating margin % 0.3 0.8
Adjusted operating
margin % (2) 0.4 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 U.K. (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Twelve Months Ended December 31,
2018 2017 % Increase/
Constant Currency (2)
(Decrease) % Increase/(Decrease)
---
REVENUES:
New vehicle retail
sales $
978,873 $
1,073,144 (8.8) (11.9)
Used vehicle
retail sales 612,307 532,469 15.0 11.4
Used vehicle
wholesale sales 144,303 133,483 8.1 4.6
Total used 756,610 665,952 13.6 10.0
Parts and service 177,079 161,723 9.5 6.1
Finance, insurance
and other, net 45,788 43,584 5.1 2.2
Total $
1,958,350 $
1,944,403 0.7 (2.6)
GROSS MARGIN %:
New vehicle retail
sales 5.6 5.6
Used vehicle
retail sales 5.0 4.9
Used vehicle
wholesale sales (1.3) (0.8)
Total used 3.8 3.8
Parts and service 56.1 57.4
Finance, insurance
and other, net 100.0 100.0
Total 11.7 11.4
GROSS PROFIT:
New vehicle retail
sales $
54,607 $
59,827 (8.7) (11.4)
Used vehicle
retail sales 30,387 26,072 16.6 12.6
Used vehicle
wholesale sales (1,947) (1,089) (78.8) (75.7)
Total used 28,440 24,983 13.8 9.9
Parts and service 99,375 92,842 7.0 3.7
Finance, insurance
and other, net 45,788 43,584 5.1 2.2
Total $
228,210 $
221,236 3.2
UNITS SOLD:
Retail new
vehicles sold 31,777 35,751 (11.1)
Retail used
vehicles sold 25,090 23,940 4.8
Wholesale used
vehicles sold 17,883 17,871 0.1
Total used 42,973 41,811 2.8
AVERAGE RETAIL SALES PRICE:
New vehicle retail $
30,804 $
30,017 2.6 (0.9)
Used vehicle
retail $
24,404 $
22,242 9.7 6.3
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $
1,718 $
1,673 2.7 (0.3)
Used vehicle
retail sales 1,211 1,089 11.2 7.5
Used vehicle
wholesale sales (109) (61) (78.7) (75.6)
Total used 662 598 10.7 6.9
Finance, insurance
and other, net
(per retail unit) $
805 $
730 10.3 7.3
OTHER:
SG&A expenses $
196,899 $
186,160 5.8 2.6
Adjusted SG&A
expenses (2) $
196,899 $
185,872 5.9 2.7
SG&A as % revenues 10.1 9.6
Adjusted SG&A as %
revenues (2) 10.1 9.6
SG&A as % gross
profit 86.3 84.1
Adjusted SG&A as %
gross profit (2) 86.3 84.0
Operating margin % 1.0 1.4
Adjusted operating
margin % (2) 1.1 1.4
(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.
Group 1 Automotive, Inc.
Additional Information - Same Store Brazil (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended December 31,
2018 2017 % Increase/
Constant Currency (2)
(Decrease) % Increase/(Decrease)
---
REVENUES:
New vehicle retail
sales $
70,923 $
82,946 (14.5) 0.2
Used vehicle
retail sales 19,845 24,129 (17.8) (3.6)
Used vehicle
wholesale sales 5,096 4,281 19.0 39.6
Total used 24,941 28,410 (12.2) 2.9
Parts and service 11,003 11,762 (6.5) 9.6
Finance, insurance
and other, net 2,763 2,243 23.2 44.2
Total $
109,630 $
125,361 (12.5) 2.5
GROSS MARGIN %:
New vehicle retail
sales 6.5 5.8
Used vehicle
retail sales 6.2 7.8
Used vehicle
wholesale sales 5.1 4.4
Total used 6.0 7.3
Parts and service 44.1 45.9
Finance, insurance
and other, net 100.0 100.0
Total 12.5 11.6
GROSS PROFIT:
New vehicle retail
sales $
4,637 $
4,849 (4.4) 11.8
Used vehicle
retail sales 1,240 1,887 (34.3) (23.0)
Used vehicle
wholesale sales 258 188 37.2 60.7
Total used 1,498 2,075 (27.8) (15.4)
Parts and service 4,854 5,404 (10.2) 5.3
Finance, insurance
and other, net 2,763 2,243 23.2 44.2
Total $
13,752 $
14,571 (5.6) 10.5
UNITS SOLD:
Retail new
vehicles sold 2,253 2,355 (4.3)
Retail used
vehicles sold 1,004 1,091 (8.0)
Wholesale used
vehicles sold 457 290 57.6
Total used 1,461 1,381 5.8
AVERAGE RETAIL SALES PRICE:
New vehicle retail $
31,479 $
35,221 (10.6) 4.7
Used vehicle
retail $
19,766 $
22,116 (10.6) 4.8
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $
2,058 $
2,059 16.8
Used vehicle
retail sales 1,235 1,730 (28.6) (16.4)
Used vehicle
wholesale sales 565 648 (12.8) 1.9
Total used 1,025 1,503 (31.8) (20.1)
Finance, insurance
and other, net
(per retail unit) $
848 $
651 30.3 52.6
OTHER:
SG&A expenses $
11,472 $
13,459 (14.8) (0.1)
Adjusted SG&A
expenses (2) $
11,472 $
12,984 (11.6) 3.6
SG&A as % revenues 10.5 10.7
Adjusted SG&A as %
revenues (2) 10.5 10.4
SG&A as % gross
profit 83.4 92.4
Adjusted SG&A as %
gross profit (2) 83.4 89.1
Operating margin % 1.7 (4.8)
Adjusted operating
margin % (2) 1.7 1.0
(1) Same Store amounts include
the results for the identical
months in each period presented
in the comparison, commencing
with the first full month we
owned the dealership and, in the
case of dispositions, ending
with the last full month we
owned it. Same Store results
also include the activities of
our corporate office.
(2) See the section of this
release entitled "Non-GAAP
Financial Measures" and the
tables attached hereto for
information regarding certain
selected items that the Company
believes impact comparability of
financial results between
reporting periods, as well as
for information regarding non-
GAAP financial measures and
their reconciliation to the most
directly comparable measures as
reported in accordance with U.S.
GAAP.
Group 1 Automotive, Inc.
Additional Information - Same Store Brazil (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Twelve Months Ended December 31,
2018 2017 % Increase/ Constant Currency
(2)
(Decrease) % Increase/(Decrease)
---
REVENUES:
New vehicle retail
sales $
267,261 $
293,820 (9.0) 3.6
Used vehicle
retail sales 84,985 90,210 (5.8) 6.9
Used vehicle
wholesale sales 16,441 12,638 30.1 49.8
Total used 101,426 102,848 (1.4) 12.2
Parts and service 44,596 47,242 (5.6) 7.5
Finance, insurance
and other, net 8,630 8,285 4.2 19.7
Total $
421,913 $
452,195 (6.7) 6.2
GROSS MARGIN %:
New vehicle retail
sales 6.6 5.8
Used vehicle
retail sales 6.2 7.4
Used vehicle
wholesale sales 3.8 6.8
Total used 5.8 7.4
Parts and service 44.5 45.7
Finance, insurance
and other, net 100.0 100.0
Total 12.3 12.0
GROSS PROFIT:
New vehicle retail
sales $
17,516 $
17,044 2.8 18.0
Used vehicle
retail sales 5,252 6,708 (21.7) (11.1)
Used vehicle
wholesale sales 630 857 (26.5) (15.6)
Total used 5,882 7,565 (22.2) (11.6)
Parts and service 19,844 21,584 (8.1) 4.6
Finance, insurance
and other, net 8,630 8,285 4.2 19.7
Total $
51,872 $
54,478 (4.8) 8.9
UNITS SOLD:
Retail new
vehicles sold 8,369 8,390 (0.3)
Retail used
vehicles sold 4,098 4,094 0.1
Wholesale used
vehicles sold 1,487 1,038 43.3
Total used 5,585 5,132 8.8
AVERAGE RETAIL SALES PRICE:
New vehicle retail $
31,935 $
35,020 (8.8) 3.8
Used vehicle
retail $
20,738 $
22,035 (5.9) 6.8
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $
2,093 $
2,031 3.1 18.3
Used vehicle
retail sales 1,282 1,638 (21.7) (11.2)
Used vehicle
wholesale sales 424 826 (48.7) (41.1)
Total used 1,053 1,474 (28.6) (18.8)
Finance, insurance
and other, net
(per retail unit) $
692 $
664 4.2 19.9
OTHER:
SG&A expenses $
48,050 $
49,599 (3.1) 11.3
Adjusted SG&A
expenses (2) $
45,116 $
49,124 (8.2) 4.8
SG&A as % revenues 11.4 11.0
Adjusted SG&A as %
revenues (2) 10.7 10.9
SG&A as % gross
profit 92.6 91.0
Adjusted SG&A as %
gross profit (2) 87.0 90.2
Operating margin % 0.5 (0.7)
Adjusted operating
margin % (2) 1.2 0.9
(1) Same Store amounts include
the results for the identical
months in each period presented
in the comparison, commencing
with the first full month we
owned the dealership and, in the
case of dispositions, ending
with the last full month we
owned it. Same Store results
also include the activities of
our corporate office.
(2) See the section of this
release entitled "Non-GAAP
Financial Measures" and the
tables attached hereto for
information regarding certain
selected items that the Company
believes impact comparability of
financial results between
reporting periods, as well as
for information regarding non-
GAAP financial measures and
their reconciliation to the most
directly comparable measures as
reported in accordance with U.S.
GAAP.
Group 1 Automotive, Inc.
Additional Information - Same Store Consolidated (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended December 31,
2018 2017 % Increase/
Constant Currency (2)
(Decrease) % Increase/(Decrease)
---
REVENUES:
New vehicle retail
sales $
1,509,317 $
1,635,945 (7.7) (6.6)
Used vehicle
retail sales 735,052 699,217 5.1 6.2
Used vehicle
wholesale sales 82,203 90,518 (9.2) (7.1)
Total used 817,255 789,735 3.5 4.7
Parts and service 345,494 338,111 2.2 3.2
Finance, insurance
and other, net 118,624 113,007 5.0 5.8
Total $
2,790,690 $
2,876,798 (3.0) (1.9)
GROSS MARGIN %:
New vehicle retail
sales 5.2 5.4
Used vehicle
retail sales 5.4 5.7
Used vehicle
wholesale sales 0.3 (2.6)
Total used 4.9 4.8
Parts and service 52.1 53.4
Finance, insurance
and other, net 100.0 100.0
Total 15.0 14.6
GROSS PROFIT:
New vehicle retail
sales $
79,019 $
87,883 (10.1) (8.6)
Used vehicle
retail sales 39,437 39,947 (1.3) (0.3)
Used vehicle
wholesale sales 264 (2,328) 111.3 112.7
Total used 39,701 37,619 5.5 6.7
Parts and service 179,869 180,416 (0.3) 0.6
Finance, insurance
and other, net 118,624 113,007 5.0 5.8
Total $
417,213 $
418,925 (0.4) 0.6
UNITS SOLD:
Retail new
vehicles sold 40,358 44,166 (8.6)
Retail used
vehicles sold 34,347 31,609 8.7
Wholesale used
vehicles sold 11,450 13,404 (14.6)
Total used 45,797 45,013 1.7
AVERAGE RETAIL SALES PRICE:
New vehicle retail $
37,398 $
37,041 1.0 2.2
Used vehicle
retail $
21,401 $
22,121 (3.3) (2.2)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $
1,958 $
1,990 (1.6)
Used vehicle
retail sales 1,148 1,264 (9.2) (8.2)
Used vehicle
wholesale sales 23 (174) 113.2 114.8
Total used 867 836 3.7 4.9
Finance, insurance
and other, net
(per retail unit) $
1,588 $
1,491 6.5 7.3
OTHER:
Adjusted Finance,
insurance and
other revenue,
net(2), (3) $
117,549 $
113,007 4.0 4.8
Adjusted Total
revenue (2) $
2,789,615 $
2,876,798 (3.0) (1.9)
Adjusted Total
gross profit (2) $
416,138 $
418,925 (0.7) 0.4
Adjusted Total
gross margin (2) 14.9 14.6
Adjusted Finance,
insurance and
other, net (per
retail unit) (2) $
1,574 $
1,491 5.6 6.3
SG&A expenses $
307,954 $
304,422 1.2 2.4
Adjusted SG&A
expenses (2) $
306,667 $
303,947 0.9 2.1
SG&A as % revenues 11.0 10.6
Adjusted SG&A as %
revenues (2) 11.0 10.6
SG&A as % gross
profit 73.8 72.7
Adjusted SG&A as %
gross profit (2) 73.7 72.6
Operating margin % 2.7 3.2
Adjusted operating
margin % (2) 3.3 3.5
(1) Same Store amounts include
the results for the identical
months in each period presented
in the comparison, commencing
with the first full month we
owned the dealership and, in the
case of dispositions, ending
with the last full month we
owned it. Same Store results
also include the activities of
our corporate office.
(2) See the section of this
release entitled "Non-GAAP
Financial Measures" and the
tables attached hereto for
information regarding certain
selected items that the Company
believes impact comparability of
financial results between
reporting periods, as well as
for information regarding non-
GAAP financial measures and
their reconciliation to the most
directly comparable measures as
reported in accordance with U.S.
GAAP.
(3) Finance, insurance and other
revenue represents fees earned
for the financing of vehicle
sales transactions and from the
sale of insurance and vehicle
service contracts. Such amounts
are reported net of estimated
amounts to be charged back in
the future. As a result,
finance, insurance and other
revenue and gross profit are the
same.
Group 1 Automotive, Inc.
Additional Information - Same Store Consolidated (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Twelve Months Ended December 31,
2018 2017 % Increase/
Constant Currency (2)
(Decrease) % Increase/(Decrease)
---
REVENUES:
New vehicle retail
sales $
5,823,673 $
6,089,164 (4.4) (4.3)
Used vehicle
retail sales 2,952,738 2,763,994 6.8 6.5
Used vehicle
wholesale sales 334,712 393,973 (15.0) (15.6)
Total used 3,287,450 3,157,967 4.1 3.8
Parts and service 1,359,516 1,322,600 2.8 2.8
Finance, insurance
and other, net 446,148 423,801 5.3 5.3
Total $
10,916,787 $
10,993,532 (0.7) (0.8)
GROSS MARGIN %:
New vehicle retail
sales 5.1 5.2
Used vehicle
retail sales 5.9 6.4
Used vehicle
wholesale sales 0.7 (0.7)
Total used 5.4 5.5
Parts and service 53.4 53.8
Finance, insurance
and other, net 100.0 100.0
Total 15.1 14.8
GROSS PROFIT:
New vehicle retail
sales $
295,418 $
318,212 (7.2) (6.9)
Used vehicle
retail sales 174,262 176,067 (1.0) (1.2)
Used vehicle
wholesale sales 2,430 (2,643) 191.9 196.8
Total used 176,692 173,424 1.9 1.8
Parts and service 725,624 711,610 2.0 1.9
Finance, insurance
and other, net 446,148 423,801 5.3 5.3
Total $
1,643,882 $
1,627,047 1.0 1.1
UNITS SOLD:
Retail new
vehicles sold 160,236 170,346 (5.9)
Retail used
vehicles sold 138,520 128,509 7.8
Wholesale used
vehicles sold 49,285 56,292 (12.4)
Total used 187,805 184,801 1.6
AVERAGE RETAIL SALES PRICE:
New vehicle retail $
36,344 $
35,746 1.7 1.7
Used vehicle
retail $
21,316 $
21,508 (0.9) (1.2)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail
sales $
1,844 $
1,868 (1.3) (1.0)
Used vehicle
retail sales 1,258 1,370 (8.2) (8.3)
Used vehicle
wholesale sales 49 (47) 204.3 210.5
Total used 941 938 0.3 0.2
Finance, insurance
and other, net
(per retail unit) $
1,493 $
1,418 5.3 5.3
OTHER:
Adjusted Finance,
insurance and
other revenue,
net (2), (3) $
445,073 $
430,351 3.4 3.4
Adjusted Total
revenue (2) $
10,915,712 $
11,000,082 (0.8) (0.8)
Adjusted Total
gross profit (2) $
1,642,807 $
1,633,597 0.6 0.6
Adjusted Total
gross margin (2) 15.0 14.9
Adjusted Finance,
insurance and
other, net (per
retail unit) (2) $
1,490 $
1,440 3.5 3.5
SG&A expenses $
1,224,480 $
1,209,171 1.3 1.4
Adjusted SG&A
expenses (2) $
1,216,215 $
1,199,931 1.4 1.4
SG&A as % revenues 11.2 11.0
Adjusted SG&A as %
revenues (2) 11.1 10.9
SG&A as % gross
profit 74.5 74.3
Adjusted SG&A as %
gross profit (2) 74.0 73.5
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 back 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)
Three Months Ended December 31,
2018 2017 % Increase/
(Decrease)
FINANCE, INSURANCE AND OTHER REVENUE, NET
RECONCILIATION:
As reported $
106,032 $
99,200 6.9
Pre-tax adjustments:
Catastrophic events (1,075)
Adjusted Finance, insurance and other
revenue, net (1) $
104,957 $
99,200 5.8
TOTAL REVENUES RECONCILIATION:
As reported $
2,266,540 $
2,287,197 (0.9)
Pre-tax adjustments:
Catastrophic events (1,075)
Adjusted Total Revenues (1) $
2,265,465 $
2,287,197 (1.0)
TOTAL GROSS PROFIT RECONCILIATION:
As reported $
352,480 $
350,678 0.5
Pre-tax adjustments:
Catastrophic events (1,075)
Adjusted Total Gross Profit (1) $
351,405 $
350,678 0.2
SG&A RECONCILIATION:
As reported $
252,634 $
242,070 4.4
Pre-tax adjustments:
Catastrophic events (605)
Gain (loss) on real estate and
dealership transactions (327)
Legal settlements (682)
Adjusted SG&A (1) $
251,020 $
242,070 3.7
TOTAL GROSS MARGIN %:
Unadjusted 15.6 15.3
Adjusted (1) 15.5 15.3
FINANCE, INSURANCE AND OTHER, NET (PER RETAIL
UNIT):
Unadjusted $
1,778 $
1,700 4.6
Adjusted (1) $
1,760 $
1,700 3.5
SG&A AS % REVENUES:
Unadjusted 11.1 10.6
Adjusted (1) 11.1 10.6
SG&A AS % GROSS PROFIT:
Unadjusted 71.7 69.0
Adjusted (1) 71.4 69.0
OPERATING MARGIN %:
Unadjusted 3.1 4.1
Adjusted (1), (2) 3.8 4.2
PRETAX MARGIN %:
Unadjusted 1.7 2.8
Adjusted (1), (2) 2.5 2.9
SAME STORE FINANCE, INSURANCE AND OTHER REVENUE,
NET RECONCILIATION:
As reported $
103,412 $
97,593 6.0
Pre-tax adjustments:
Catastrophic events (1,075)
Adjusted Finance, insurance and other
revenue, net (1) $
102,337 $
97,593 4.9
SAME STORE TOTAL REVENUES RECONCILIATION:
As reported $
2,216,414 $
2,246,278 (1.3)
Pre-tax adjustments:
Catastrophic events (1,075)
Adjusted Total Revenues (1) $
2,215,339 $
2,246,278 (1.4)
SAME STORE TOTAL GROSS PROFIT RECONCILIATION:
As reported $
345,721 $
344,390 0.4
Pre-tax adjustments:
Catastrophic events (1,075)
Adjusted Total Gross Profit (1) $
344,646 $
344,390 0.1
SAME STORE SG&A RECONCILIATION:
As reported $
243,619 $
237,470 2.6
Pre-tax adjustments:
Catastrophic events (605)
Legal settlements (682)
Adjusted Same Store SG&A (1) $
242,332 $
237,470 2.0
SAME STORE TOTAL GROSS MARGIN %:
Unadjusted 15.6 15.3
Adjusted (1) 15.6 15.3
SAME STORE FINANCE, INSURANCE AND OTHER, NET
(PER RETAIL UNIT):
Unadjusted $
1,785 $
1,697 5.2
Adjusted (1) $
1,767 $
1,697 4.1
SAME STORE SG&A AS % REVENUES:
Unadjusted 11.0 10.6
Adjusted (1) 10.9 10.6
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 70.5 69.0
Adjusted (1) 70.3 69.0
SAME STORE OPERATING MARGIN %:
Unadjusted 3.3 4.2
Adjusted (1), (3) 4.0 4.2
(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 Revenues
and SG&A reconciling items
above, as well as non-cash
asset impairment charges of
$15,971 for the three months
ended December 31, 2018 and
$3,236 for the three months
ended December 31, 2017.
(3) Excludes the impact of Same Store
Revenues and SG&A reconciling
items above, as well as non-
cash asset impairment charges of
$15,971 for the three months
ended December 31, 2018 and
$1,514 for the three months
ended December 31, 2017.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - U.S.
(Unaudited)
(Dollars in thousands)
Twelve Months Ended December 31,
2018 2017 % Increase/
(Decrease)
FINANCE, INSURANCE AND OTHER REVENUE, NET
RECONCILIATION:
As reported $
401,271 $
375,954 6.7
Pre-tax adjustments:
Catastrophic events (1,075) 6,550
Adjusted Finance, insurance and other
revenue, net (1) $
400,196 $
382,504 4.6
TOTAL REVENUES RECONCILIATION:
As reported $
8,723,257 $
8,680,565 0.5
Pre-tax adjustments:
Catastrophic events (1,075) 6,550
Adjusted Total Revenues (1) $
8,722,182 $
8,687,115 0.4
TOTAL GROSS PROFIT RECONCILIATION:
As reported $
1,391,306 $
1,365,314 1.9
Pre-tax adjustments:
Catastrophic events (1,075) 6,550
Adjusted Total Gross Profit (1) $
1,390,231 $
1,371,864 1.3
SG&A RECONCILIATION:
As reported $
982,064 $
983,974 (0.2)
Pre-tax adjustments:
Catastrophic events (6,417) (8,792)
Gain (loss) on real estate and
dealership transactions 25,186 (798)
Legal settlements (1,285) 1,113
Adjusted SG&A (1) $
999,548 $
975,497 2.5
TOTAL GROSS MARGIN %:
Unadjusted 15.9 15.7
Adjusted (1) 15.9 15.8
FINANCE, INSURANCE AND OTHER, NET (PER RETAIL
UNIT):
Unadjusted $
1,710 $
1,647 3.8
Adjusted (1) $
1,705 $
1,675 1.8
SG&A AS % REVENUES:
Unadjusted 11.3 11.3
Adjusted (1) 11.5 11.2
SG&A AS % OF GROSS PROFIT:
Unadjusted 70.6 72.1
Adjusted (1) 71.9 71.1
OPERATING MARGIN %:
Unadjusted 3.6 3.7
Adjusted (1), (2) 3.9 4.0
PRETAX MARGIN %:
Unadjusted 2.2 2.4
Adjusted (1), (2) 2.5 2.7
SAME STORE FINANCE, INSURANCE AND OTHER REVENUE,
NET RECONCILIATION:
As reported $
391,730 $
371,932 5.3
Pre-tax adjustments:
Catastrophic events (1,075) 6,550
Adjusted Finance, insurance and other
revenue, net (1) $
390,655 $
378,482 3.2
SAME STORE TOTAL REVENUES RECONCILIATION:
As reported $
8,536,524 $
8,596,934 (0.7)
Pre-tax adjustments:
Catastrophic events (1,075) 6,550
Adjusted Total Revenues (1) $
8,535,449 $
8,603,484 (0.8)
SAME STORE TOTAL GROSS PROFIT RECONCILIATION:
As reported $
1,363,800 $
1,351,333 0.9
Pre-tax adjustments:
Catastrophic events (1,075) 6,550
Adjusted Total Gross Profit (1) $
1,362,725 $
1,357,883 0.4
SAME STORE SG&A RECONCILIATION:
As reported $
979,531 $
973,412 0.6
Pre-tax adjustments:
Catastrophic events (6,417) (8,792)
Gain (loss) on real estate and
dealership transactions 2,372 (798)
Legal settlements (1,285) 1,113
Adjusted Same Store SG&A (1) $
974,201 $
964,935 1.0
SAME STORE TOTAL GROSS MARGIN %:
Unadjusted 16.0 15.7
Adjusted (1) 16.0 15.8
SAME STORE FINANCE, INSURANCE AND OTHER, NET
(PER RETAIL UNIT):
Unadjusted $
1,707 $
1,641 4.0
Adjusted (1) $
1,703 $
1,670 2.0
SAME STORE SG&A AS % REVENUES:
Unadjusted 11.5 11.3
Adjusted (1) 11.4 11.2
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 71.8 72.0
Adjusted (1) 71.5 71.1
SAME STORE OPERATING MARGIN %:
Unadjusted 3.4 3.7
Adjusted (1), (3) 3.9 4.0
(1) See the section of this release
entitled "Non-GAAP Financial
Measures" for information
regarding non-GAAP financial
measures and certain selected
items that the Company believes
impact comparability of
financial results between
reporting periods.
(2) Excludes the impact of Revenues
and SG&A reconciling items
above, as well as non-cash
asset impairment charges of
$43,398 for the twelve months
ended December 31, 2018 and
$12,762 for the twelve months
ended December 31, 2017.
(3) Excludes the impact of Same Store
Revenues and SG&A reconciling
items above, as well as non-
cash asset impairment charges of
$42,154 for the twelve months
ended December 31, 2018 and
$11,034 for the twelve months
ended December 31, 2017.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - U.K.
(Unaudited)
(Dollars in thousands)
Three Months Ended December 31,
2018 2017
% Increase/
(Decrease)
OPERATING MARGIN %:
Unadjusted 0.4 0.8
Adjusted (1), (2) 0.5 0.8
PRETAX MARGIN %:
Unadjusted (0.2) 0.3
Adjusted (1), (2) (0.1) 0.3
SAME STORE OPERATING MARGIN %:
Unadjusted 0.3 0.8
Adjusted (1), (2) 0.4 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.
(2) Excludes the impact of non-cash
asset impairment charges of $485
for the three months ended
December 31, 2018.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - U.K.
(Unaudited)
(Dollars in thousands)
Twelve Months Ended December 31,
2018 2017 % Increase/
(Decrease)
SG&A RECONCILIATION:
As reported $
240,403 $
191,570 25.5
Pre-tax adjustments:
Acquisition costs (288)
Adjusted SG&A (1) $
240,403 $
191,282 25.7
SG&A AS % REVENUES:
Unadjusted 9.9 9.6
Adjusted (1) 9.9 9.6
SG&A AS % OF GROSS PROFIT:
Unadjusted 85.9 85.0
Adjusted (1) 85.9 84.9
OPERATING MARGIN %:
Unadjusted 1.1 1.3
Adjusted (1), (2) 1.1 1.3
PRETAX MARGIN %:
Unadjusted 0.5 0.9
Adjusted (1), (2) 0.6 0.9
SAME STORE SG&A RECONCILIATION:
As reported $
196,899 $
186,160 5.8
Pre-tax adjustments:
Acquisition costs (288)
Adjusted Same Store SG&A (1) $
196,899 $
185,872 5.9
SAME STORE SG&A AS % REVENUES:
Unadjusted 10.1 9.6
Adjusted (1) 10.1 9.6
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 86.3 84.1
Adjusted (1) 86.3 84.0
SAME STORE OPERATING MARGIN %:
Unadjusted 1.0 1.4
Adjusted (1), (3) 1.1 1.4
(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 $485 for the twelve
months ended December 31, 2018.
(3) Excludes the impact of Same Store
SG&A reconciling items above, as
well as non-cash asset
impairment charges of $485 for
the twelve months ended December
31, 2018.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - Brazil
(Unaudited)
(Dollars in thousands)
Three Months Ended December 31,
2018 2017 % Increase/
(Decrease)
SG&A RECONCILIATION:
As reported $
12,368 $
13,356 (7.4)
Severance costs (475)
Adjusted SG&A (1) $
12,368 $
12,881 (4.0)
SG&A AS % REVENUES:
Unadjusted 10.5 10.7
Adjusted (1) 10.5 10.3
SG&A AS % GROSS PROFIT:
Unadjusted 84.4 91.7
Adjusted (1) 84.4 88.4
OPERATING MARGIN %:
Unadjusted 1.6 (4.7)
Adjusted (1), (2) 1.6 1.1
PRETAX MARGIN %:
Unadjusted 1.3 (4.9)
Adjusted (1), (2) 1.3 0.9
SAME STORE SG&A RECONCILIATION:
As reported $
11,472 $
13,459 (14.8)
Pre-tax adjustments:
Severance costs (475)
Adjusted Same Store SG&A (1) $
11,472 $
12,984 (11.6)
SAME STORE SG&A AS % REVENUES:
Unadjusted 10.5 10.7
Adjusted (1) 10.5 10.4
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 83.4 92.4
Adjusted (1) 83.4 89.1
SAME STORE OPERATING MARGIN %:
Unadjusted 1.7 (4.8)
Adjusted (1), (3) 1.7 1.0
(1) See the section of this release
entitled "Non-GAAP Financial
Measures" for information
regarding non-GAAP financial
measures and certain selected
items that the Company believes
impact comparability of
financial results between
reporting periods.
(2) Excludes the impact of SG&A
reconciling items above, as well
as non-cash asset impairment
charges of $6,744 for the three
months ended December 31, 2017.
(3) Excludes the impact of Same Store
SG&A reconciling items above, as
well as non-cash asset
impairment charges of $6,744 for
the three months ended December
31, 2017.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - Brazil
(Unaudited)
(Dollars in thousands)
Twelve Months Ended December 31,
2018 2017 % Increase/
(Decrease)
SG&A RECONCILIATION:
As reported $
50,590 $
50,651 (0.1)
Pre-tax adjustments:
Severance costs (475)
Legal settlements (3,670)
Adjusted SG&A (1) $
46,920 $
50,176 (6.5)
SG&A AS % REVENUES:
Unadjusted 11.5 11.1
Adjusted (1) 10.6 11.0
SG&A AS % OF GROSS PROFIT:
Unadjusted 93.9 92.2
Adjusted (1) 87.1 91.3
OPERATING MARGIN %:
Unadjusted 0.4 (0.9)
Adjusted (1), (2) 1.2 0.7
PRETAX MARGIN %:
Unadjusted (1.0)
Adjusted (1), (2) 0.8 0.6
SAME STORE SG&A RECONCILIATION:
As reported $
48,050 $
49,599 (3.1)
Pre-tax adjustments:
Severance costs (475)
Legal settlements (2,934)
Adjusted Same Store SG&A (1) $
45,116 $
49,124 (8.2)
SAME STORE SG&A AS % REVENUES:
Unadjusted 11.4 11.0
Adjusted (1) 10.7 10.9
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 92.6 91.0
Adjusted (1) 87.0 90.2
SAME STORE OPERATING MARGIN %:
Unadjusted 0.5 (0.7)
Adjusted (1), (3) 1.2 0.9
(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 $6,744 for the twelve
months ended December 31, 2017.
(3) Excludes the impact of Same Store
SG&A reconciling items above, as
well as non-cash asset
impairment charges of $6,744 for
the twelve months ended December
31, 2017.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - Consolidated
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended December 31,
2018 2017 % Increase/
(Decrease)
NET INCOME RECONCILIATION:
As reported
Pretax Net Income $
39,683 $
58,974
Income Tax Provision (8,965) 51,515
Net Income $
30,718 $
110,489 (72.2)
Effective Tax Rate 22.6% (87.4)%
Adjustments:
Catastrophic events
Pre-tax (470)
Tax impact 114
(Gain) loss on real estate and dealership
transactions
Pre-tax 327
Tax impact (79)
Severance costs
Pre-tax 475
Tax impact (122)
Legal settlements
Pre-tax 682
Tax impact (167)
Non-cash asset impairment
Pre-tax 16,456 9,979
Tax impact (3,775) (3,515)
Tax rate changes
Pre-tax
Tax impact (73,028)
Adjusted
Pretax Net Income $
56,678 $
69,428
Income Tax Provision (12,872) (25,150)
Adjusted net income (1) $
43,806 $
44,278 (1.1)
Effective Tax Rate 22.7% 36.2%
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES
RECONCILIATION:
Adjusted net income (1) $
43,806 $
44,278 (1.1)
Less: Adjusted earnings allocated to
participating securities 1,567 1,483 5.6
Adjusted net income available to diluted
common shares (1) $
42,239 $
42,795 (1.3)
DILUTED (LOSS) INCOME PER COMMON SHARE RECONCILIATION:
As reported $
1.62 $
5.27 (69.3)
After-tax adjustments:
Catastrophic events (0.02)
(Gain) loss on real estate and dealership
transactions 0.01
Severance costs 0.02
Legal settlements 0.03
Non-cash asset impairment 0.67 0.30
Tax rate changes (3.48)
Adjusted diluted income per share (1) $
2.31 $
2.11 9.5
FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:
As reported $
123,991 $
114,705 8.1
Pre-tax adjustments:
Catastrophic events (1,075)
Adjusted Finance, insurance and other
revenue, net (1) $
122,916 $
114,705 7.2
TOTAL REVENUES RECONCILIATION:
As reported $
2,908,812 $
2,920,405 (0.4)
Pre-tax adjustments:
Catastrophic events (1,075)
Adjusted Total Revenues (1) $
2,907,737 $
2,920,405 (0.4)
TOTAL GROSS PROFIT RECONCILIATION:
As reported $
432,066 $
425,675 1.5
Pre-tax adjustments:
Catastrophic events (1,075)
Adjusted Total Gross Profit (1) $
430,991 $
425,675 1.2
SG&A RECONCILIATION:
As reported $
323,847 $
309,521 4.6
Pre-tax adjustments:
Catastrophic events (605)
Gain (loss) on real estate and dealership
transactions (327)
Severance costs (475)
Legal settlements (682)
Adjusted SG&A (1) $
322,233 $
309,046 4.3
TOTAL GROSS MARGIN %:
Unadjusted 14.9 14.6
Adjusted (1) 14.8 14.6
FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):
Unadjusted $
1,582 $
1,495 5.8
Adjusted (1) $
1,568 $
1,495 4.9
SG&A AS % REVENUES:
Unadjusted 11.1 10.6
Adjusted (1) 11.1 10.6
SG&A AS % GROSS PROFIT:
Unadjusted 75.0 72.7
Adjusted (1) 74.8 72.6
OPERATING MARGIN %:
Unadjusted 2.6 3.1
Adjusted (1), (2) 3.2 3.5
PRETAX MARGIN %:
Unadjusted 1.4 2.0
Adjusted (1), (2) 1.9 2.4
SAME STORE FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:
As reported $
118,624 $
113,007 5.0
Pre-tax adjustments:
Catastrophic events (1,075)
Adjusted Finance, insurance and other
revenue, net (1) $
117,549 $
113,007 4.0
SAME STORE TOTAL REVENUES RECONCILIATION:
As reported $
2,790,690 $
2,876,798 (3.0)
Pre-tax adjustments:
Catastrophic events (1,075)
Adjusted Total Revenues (1) $
2,789,615 $
2,876,798 (3.0)
SAME STORE TOTAL GROSS PROFIT RECONCILIATION:
As reported $
417,213 $
418,925 (0.4)
Pre-tax adjustments:
Catastrophic events (1,075)
Adjusted Total Gross Profit (1) $
416,138 $
418,925 (0.7)
SAME STORE SG&A RECONCILIATION:
As reported $
307,954 $
304,422 1.2
Pre-tax adjustments:
Catastrophic events (605)
Severance costs (475)
Legal settlements (682)
Adjusted Same Store SG&A (1) $
306,667 $
303,947 0.9
SAME STORE TOTAL GROSS MARGIN %:
Unadjusted 15.0 14.6
Adjusted (1) 14.9 14.6
SAME STORE FINANCE, INSURANCE AND OTHER, NET (PER RETAIL
UNIT):
Unadjusted $
1,588 $
1,491 6.5
Adjusted (1) $
1,574 $
1,491 5.6
SAME STORE SG&A AS % REVENUES:
Unadjusted 11.0 10.6
Adjusted (1) 11.0 10.6
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 73.8 72.7
Adjusted (1) 73.7 72.6
SAME STORE OPERATING MARGIN %:
Unadjusted 2.7 3.2
Adjusted (1), (3) 3.3 3.5
(1) See the section of this release
entitled "Non-GAAP Financial
Measures" for information
regarding non-GAAP financial
measures and certain selected
items that the Company believes
impact comparability of
financial results between
reporting periods.
(2) Excludes the impact of Revenues
and SG&A reconciling items
above, as well as non-cash
asset impairment charges of
$16,456 for the three months
ended December 31, 2018 and
$9,980 for the three months
ended December 31, 2017.
(3) Excludes the impact of Same Store
Revenues and SG&A reconciling
items above, as well as non-
cash asset impairment charges of
$16,456 for the three months
ended December 31, 2018 and
$8,258 for the three months
ended December 31, 2017.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - Consolidated
(Unaudited)
(Dollars in thousands, except per share amounts)
Twelve Months Ended December 31, 2018
2018 2017 % Increase/
(Decrease)
NET INCOME RECONCILIATION:
As reported
Pretax Net Income $
205,403 $
219,003
Income Tax Provision (47,631) (5,561)
Net Income $
157,772 $
213,442 (26.1)
Effective Tax Rate 23.2% 2.5%
Adjustments:
Catastrophic events
Pre-tax 5,342 15,342
Tax impact (1,330) (5,926)
(Gain) loss on real estate and
dealership transactions
Pre-tax (25,186) 798
Tax impact 6,087 (301)
Severance costs
Pre-tax 475
Tax impact (122)
Acquisition costs
Pre-tax 288
Tax impact
Legal settlements
Pre-tax 4,955 (1,113)
Tax impact (854) 426
Non-cash asset impairment
Pre-tax 43,883 19,505
Tax impact (10,368) (7,094)
Allowance for uncertain tax positions
Pre-tax
Tax impact 834
Tax rate changes
Pre-tax
Tax impact (705) (73,028)
Adjusted
Pretax Net Income $
234,397 $
254,298
Income Tax Provision (54,801) (90,772)
Adjusted net income (1) $
179,596 $
163,526 9.8
Effective Tax Rate 23.4% 35.7%
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON
SHARES RECONCILIATION:
Adjusted net income (1) $
179,596 $
163,526 9.8
Less: Adjusted earnings allocated to
participating securities 6,169 5,738 7.5
Adjusted net income available to
diluted common shares (1) $
173,427 $
157,788 9.9
DILUTED INCOME PER COMMON SHARE RECONCILIATION:
As reported $
7.83 $
10.08 (22.3)
After-tax adjustments:
Catastrophic events 0.20 0.45
(Gain) loss on real estate and
dealership transactions (0.95) 0.03
Severance costs 0.01
Acquisition costs including related tax
impact 0.01
Legal settlements 0.21 (0.03)
Non-cash asset impairment 1.65 0.59
Allowance for uncertain tax positions 0.04
Tax rate changes (0.03) (3.45)
Adjusted diluted income per share (1) $
8.91 $
7.73 15.3
FINANCE, INSURANCE AND OTHER REVENUE, NET
RECONCILIATION:
As reported $
467,453 $
429,002 9.0
Pre-tax adjustments:
Catastrophic events (1,075) 6,550
Adjusted Finance, insurance and other
revenue, net (1) $
466,378 $
435,552 7.1
TOTAL REVENUES RECONCILIATION:
As reported $
11,601,358 $
11,123,721 4.3
Pre-tax adjustments:
Catastrophic events (1,075) 6,550
Adjusted Total Revenues (1) $
11,600,283 $
11,130,271 4.2
TOTAL GROSS PROFIT RECONCILIATION:
As reported $
1,725,093 $
1,645,509 4.8
Pre-tax adjustments:
Catastrophic events (1,075) 6,550
Adjusted Total Gross Profit (1) $
1,724,018 $
1,652,059 4.4
SG&A RECONCILIATION:
As reported $
1,273,057 $
1,226,195 3.8
Pre-tax adjustments:
Catastrophic events (6,417) (8,792)
Gain (loss) on real estate and
dealership transactions 25,186 (798)
Severance costs (475)
Acquisition costs (288)
Legal settlements (4,955) 1,113
Adjusted SG&A (1) $
1,286,871 $
1,216,955 5.7
TOTAL GROSS MARGIN %:
Unadjusted 14.9 14.8
Adjusted (1) 14.9 14.8
FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):
Unadjusted $
1,468 $
1,420 3.4
Adjusted (1) $
1,464 $
1,442 1.5
SG&A AS % REVENUES:
Unadjusted 11.0 11.0
Adjusted (1) 11.1 10.9
SG&A AS % OF GROSS PROFIT:
Unadjusted 73.8 74.5
Adjusted (1) 74.6 73.7
OPERATING MARGIN %:
Unadjusted 2.9 3.1
Adjusted (1), (2) 3.2 3.4
PRETAX MARGIN %:
Unadjusted 1.8 2.0
Adjusted (1), (2) 2.0 2.3
SAME STORE FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:
As reported $
446,148 $
423,801 5.3
Pre-tax adjustments:
Catastrophic events (1,075) 6,550
Adjusted Finance, insurance and other
revenue, net (1) $
445,073 $
430,351 3.4
SAME STORE TOTAL REVENUES RECONCILIATION:
As reported $
10,916,787 $
10,993,532 (0.7)
Pre-tax adjustments:
Catastrophic events (1,075) 6,550
Adjusted Total Revenues (1) $
10,915,712 $
11,000,082 (0.8)
SAME STORE TOTAL GROSS PROFIT RECONCILIATION:
As reported $
1,643,882 $
1,627,047 1.0
Pre-tax adjustments:
Catastrophic events (1,075) 6,550
Adjusted Total Gross Profit (1) $
1,642,807 $
1,633,597 0.6
SAME STORE SG&A RECONCILIATION:
As reported $
1,224,480 $
1,209,171 1.3
Pre-tax adjustments:
Catastrophic events (6,417) (8,792)
Gain (loss) on real estate and
dealership transactions 2,372 (798)
Severance costs (475)
Acquisition costs (288)
Legal settlements (4,220) 1,113
Adjusted Same Store SG&A (1) $
1,216,215 $
1,199,931 1.4
SAME STORE TOTAL GROSS MARGIN %:
Unadjusted 15.1 14.8
Adjusted (1) 15.0 14.9
SAME STORE FINANCE, INSURANCE AND OTHER, NET (PER
RETAIL UNIT):
Unadjusted $
1,493 $
1,418 5.3
Adjusted (1) $
1,490 $
1,440 3.5
SAME STORE SG&A AS % REVENUES:
Unadjusted 11.2 11.0
Adjusted (1) 11.1 10.9
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 74.5 74.3
Adjusted (1) 74.0 73.5
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 Revenues
and SG&A reconciling items
above, as well as non-cash
asset impairment charges of
$43,883 for the twelve months
ended December 31, 2018 and
$19,506 for twelve months ended
December 31, 2017.
(3) Excludes the impact of Same Store
Revenues and SG&A reconciling
items above, as well as non-
cash asset impairment charges of
$42,639 for the twelve months
ended December 31, 2018 and
$17,778 for the twelve months
ended December 31, 2017.
View original content:http://www.prnewswire.com/news-releases/group-1-automotive-reports-fourth-quarter--full-year-2018-financial-results-300789587.html
SOURCE Group 1 Automotive, Inc.
