GROUP 1 AUTOMOTIVE, INC. HOUSTON, Oct. 23, 2014 /PRNewswire/ --Group 1 Automotive, Inc. (NYSE: GPI), an international, Fortune 500 automotive retailer, today reported 2014 third quarter adjusted net income of $39.8 million, which equates to a diluted earnings per common share of $1.57. Total revenue grew 12.2 percent to an all-time record of $2.6 billion. The quarter included several significant non-recurring charges, especially relating to a convertible senior notes repurchase, which resulted in GAAP net income and diluted earnings per share of $26.2 million and $1.03, respectively. Adjusted net income increased 21.0 percent from the comparable, adjusted prior-year period. On a GAAP basis, net income decreased 20.2 percent from the comparable prior-year period.
Year-to-date 2014 adjusted net income increased 9.1 percent. Adjusted diluted earnings per common share for the first nine months of 2014 were $4.22. On a GAAP basis, net income decreased 19.4 percent from the comparable prior-year period.
Adjusted net income for the third quarter of 2014 excludes $13.6 million of net, after-tax adjustments, including $17.9 million of charges related to the repurchase of our 2.25% and 3.00% convertible notes, and $6.6 million of asset impairments primarily associated with the pending disposition of vacated U.S. dealership real estate and three Renault franchises in Brazil. These charges were partially offset by a net $8.6 million gain on the sale of U.S. dealerships and associated real estate, and a $3.4 million income tax benefit related to deductible goodwill in Brazil.
"We are delighted to announce all-time record earnings this quarter, with the results driven by strong expense leverage and significant revenue increases across all of our business sectors," said Earl J. Hesterberg, Group 1's president and chief executive officer. "Our International businesses were major factors in our success, with our United Kingdom operations delivering all-time record earnings for the quarter and our Brazilian operations returning to profitability following a significant restructuring."
Financial Highlights for Third Quarter 2014 (year-over-year comparable basis)
-- Total revenue increased 12.2 percent to $2.6 billion, an all-time
quarterly record. Total gross profit grew 13.7 percent to $374.7
million.
-- New vehicle revenues increased 9.7 percent on 5.2 percent higher unit
sales. New vehicle gross profit increased 9.5 percent to $80.2 million
as margins rose 4.1 percent or $71 per unit, to $1,803.
-- Retail used vehicle revenues increased 16.2 percent on increased unit
sales of 10.4 percent. Retail used vehicle gross profit increased $6.8
million to $44.3 million, though gross profit per unit sold decreased
3.3 percent, or $52 per unit.
-- Parts and service gross profit increased 15.5 percent on revenue growth
of 14.3 percent. Same Store parts and service revenue increased 7.4
percent.
-- Finance and Insurance (F&I) gross profit per retail unit increased 9.8
percent to $1,325 per unit. Same Store consolidated F&I gross profit per
retail unit increased 9.3 percent to $1,336 per unit. U.S. Same Store
F&I gross profit per retail unit increased 5.4 percent to a record
$1,475 per unit. U.K. Same Store performance increased 20.3 percent to
$747. Brazilian performance increased 47.6 percent to $586.
-- Adjusted SG&A expenses as a percent of gross profit improved 120 basis
points to 73.9 percent. Adjusted Same Store SG&A expenses as a percent
of gross profit improved 240 basis points to 74.7 percent in the U.K.,
and 100 basis points to 71.8 percent in the U.S.
-- Quarter-to-date fully diluted common shares outstanding averaged 24.4
million shares, down roughly 1.8 million shares from the second quarter,
due to the Company's redemption of outstanding convertible securities.
Segment Results for Third Quarter 2014 (year-over-year comparable basis)
-- United States:
The Company's U.S. revenues were $2.2 billion, an increase of 15.1 percent. The revenue growth was primarily explained by unit sales increases of 11.5 percent in new vehicles and 12.2 percent in retail used vehicles, as well as an increase of 14.1 percent in parts and service revenue. This strong revenue growth drove gross profit growth of 14.9 percent, reflecting the higher new and used retail volumes, expanded parts and service margins of 70 basis points, and an F&I increase of 17.9 percent, or $75, to $1,450 per retail unit. As the Company has rebalanced its U.S. dealership portfolio over the past 12 months, consolidated results differ significantly from Same Store results.
On a comparable adjusted basis, SG&A expense as a percent of gross profit improved 110 basis points to 72.9 percent, operating margin was 3.6 percent and pretax margin was 2.6 percent. The Company's U.S. operations accounted for 82.8 percent of total revenues, 85.9 percent of total gross profit and 90.1 percent of the Company's adjusted pretax income.
-- United Kingdom:
The Company's U.K. operations accounted for 9.6 percent of total revenues, 8.0 percent of total gross profit, and 9.2 percent of the Company's adjusted pretax income. Total revenue increased 7.4 percent to $252.2 million, and gross profit increased 17.0 percent. Revenue growth was primarily driven by 35.3 percent and 2.5 percent increases in new and used vehicle retail gross profit per unit sold, respectively, and continued strong growth in parts and service revenue which was up 21.8 percent for the quarter.
On a comparable adjusted basis, SG&A expense as a percent of gross profit improved 230 basis points to 74.7 percent.
-- Brazil:
After a challenging second quarter due to further deterioration in the Brazilian auto industry and business disruption due to the World Cup, the Company's Brazilian operation returned to profit in the third quarter. The return to profitability was driven by an organizational restructuring, which eliminated 150 positions, 10 percent of total headcount. Additional headcount reductions will occur with the disposal of 3 Renault dealerships in the fourth quarter.
The Company's Brazil operations accounted for 7.6 percent of total revenues, 6.1 percent of total gross profit and 0.6 percent of the Company's adjusted pretax income. Gross profit was $22.9 million on revenues of $198.6 million. Improvements in gross profit per unit sold were driven by a 45.3 percent increase in F&I and a 24.0 percent increase in used vehicle retail margins. Growth in used vehicle retail sales and parts and service were the primary revenue contributors with 12.2 percent and 9.8 percent increases, respectively. F&I, used vehicles, and parts and service gross profit improved by 18.6 percent, 11.7 percent, and 9.1 percent, respectively.
On a comparable adjusted basis, SG&A expense as a percent of gross profit was at 86.9 percent, operating margin was 1.2 percent and pretax margin was 0.2 percent. On a sequential basis, adjusted SG&A expense as a percent of gross profit improved 8.2 percentage points, a significant drop from 95.1 percent in the second quarter of 2014.
"Despite continued weakness in the Brazilian auto market, our Brazilian business returned to profit in the third quarter," said Earl J. Hesterberg, Group 1's president and chief executive officer. "This was accomplished by quick and decisive action by our Brazilian management to restructure our operations to reflect the lower overall market sales levels. I continue to be impressed by the intensity and professionalism of our Brazilian teammates."
Capital Restructure
As previously announced, on September 4, 2014, the Company redeemed all of its 2.25% Convertible Senior Notes due 2036. In conjunction with the redemption of the 2.25% Convertible Senior Notes, the Company issued an additional $200.0 million aggregate principal amount of its 5.00% Senior Notes due 2022. Also during September 2014, the Company purchased the remaining $22,550,000 in aggregate principal amount of its outstanding 3.00% Convertible Senior Notes due 2020.
"We significantly simplified our balance sheet this quarter by repurchasing both the remainder of our 3.00% Convertible Senior Notes and all of our outstanding 2.25% Convertible Senior Notes," said John C. Rickel, Group 1's senior vice president and chief financial officer. These actions will reduce our ongoing diluted share count by approximately 2.7 million shares, and remove a significant amount of variability from our ongoing quarterly results."
Share Repurchase Authorization
During the quarter, the Company repurchased 230,200 shares at an average price per share of $73.09 for a total of $16.8 million. As of September 30, 2014, approximately $37.7 million remains available under the Company's prior common stock share repurchase authorization. Purchases 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.
Corporate Development
As previously announced during the third quarter, the Company acquired a Chevrolet franchise and Mazda franchise in Houston, Texas; a Mercedes-Benz franchise and Sprinter franchise in the greater metropolitan area of San Antonio, Texas; and a Mercedes-Benz franchise in Campo Grande, the capital of the Brazilian state of Mato Grosso do Sul. These franchises are expected to generate approximately $370 million in annual revenues.
Also during the third quarter, as previously announced, the Company divested its BMW, MINI, Mercedes-Benz and Sprinter franchises and associated dealership real estate on Long Island in New York. The Company also disposed of a Honda franchise in Freehold, New Jersey. In total, these dealerships generated approximately $325 million in trailing-twelve-month revenues.
On September 30, 2014, the Company divested a Volkswagen franchise in Holiday, Florida, which generated trailing-twelve-month revenues of approximately $15 million. Additionally, the Company signed a letter of intent to dispose of three Renault stores in Brazil later this year. Detail and trailing-twelve-month revenues will be disclosed at that time.
Year-to-date, the Company has acquired 12 franchises worldwide that are expected to generate approximately $680 million in annual revenues and has disposed of 7 franchises that generated trailing-twelve-month revenues of roughly $390 million.
Third Quarter Earnings Conference Call Details
Senior management will host a conference call today at 10 a.m. ET to discuss the third quarter financial results and the Company's outlook and strategy.
The conference call will be simulcast live on the Internet at www.group1auto.com, then click on 'Investor Relations' and then 'Events' or through this link: http://www.group1corp.com/events. A webcast replay will be available for 30 days.
The conference call will also be available live by dialing in 15 minutes prior to the start of the call at:
Domestic: 1-888-317-6003
International: 1-412-317-6061
Conference ID: 3198212
A telephonic replay will be available following the call through November 20, 2014 by dialing:
Domestic: 1-877-344-7529
International: 1-412-317-0088
Replay Pin: 1936175
About Group 1 Automotive, Inc.
Group 1 owns and operates 150 automotive dealerships, 192 franchises, and 37 collision centers in the United States, the United Kingdom and Brazil that offer 34 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service and insurance contracts; provides automotive maintenance and repair services; and sells vehicle parts.
Group 1 Automotive can be reached on the Internet at www.group1auto.com.
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.
Investor contacts:
Sheila Roth
Manager, Investor Relations
Group 1 Automotive, Inc.
713-647-5741 | sroth@group1auto.com
Media contacts:
Pete DeLongchamps
V.P. Manufacturer Relations, Financial Services and Public Affairs
Group 1 Automotive, Inc.
713-647-5770 | pdelongchamps@group1auto.com
or
Clint Woods
Pierpont Communications, Inc.
713-627-2223 | cwoods@piercom.com
Group 1 Automotive, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended September 30,
--------------------------------
2014 2013 % Change
---- ---- --------
REVENUES:
New vehicle retail sales $1,521,246 $1,386,667 9.7
Used vehicle retail sales 615,924 529,828 16.2
Used vehicle wholesale
sales 100,347 85,800 17.0
Parts and service 291,816 255,316 14.3
Finance and insurance 97,115 82,536 17.7
------ ------
Total revenues 2,626,448 2,340,147 12.2
COST OF SALES:
New vehicle retail sales 1,441,016 1,313,372 9.7
Used vehicle retail sales 571,613 488,346 17.1
Used vehicle wholesale
sales 101,643 87,334 16.4
Parts and service 137,467 121,633 13.0
------- -------
Total cost of sales 2,251,739 2,010,685 12.0
GROSS PROFIT 374,709 329,462 13.7
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 264,233 246,863 7.0
DEPRECIATION AND
AMORTIZATION EXPENSE 10,746 9,093 18.2
ASSET IMPAIRMENTS 9,373 565 1,558.9
OPERATING INCOME 90,357 72,941 23.9
OTHER EXPENSE:
Floorplan interest expense (10,452) (10,690) (2.2)
Other interest expense,
net (13,246) (9,971) 32.8
Loss on repurchase of
long-term debt (22,790) - 100.0
------- ---
INCOME BEFORE INCOME TAXES 43,869 52,280 (16.1)
PROVISION FOR INCOME TAXES (17,707) (19,515) (9.3)
NET INCOME $26,162 $32,765 (20.2)
======= =======
Earnings allocated to
participating securities $(1,000) $(1,320) (24.2)
Earnings available to
diluted common shares $25,162 $31,445 (20.0)
======= =======
DILUTED EARNINGS PER SHARE $1.03 $1.19 (13.4)
Weighted average dilutive
common shares outstanding 24,432 26,342 (7.3)
Weighted average
participating securities 971 1,100 (11.7)
--- -----
Total weighted average
shares outstanding 25,403 27,442 (7.4)
Nine Months Ended September 30,
-------------------------------
2014 2013 % Change
---- ---- --------
REVENUES:
New vehicle retail sales $4,256,146 $3,873,121 9.9
Used vehicle retail sales 1,743,071 1,536,031 13.5
Used vehicle wholesale
sales 284,491 243,667 16.8
Parts and service 844,340 753,776 12.0
Finance and insurance 270,901 232,494 16.5
Total revenues 7,398,949 6,639,089 11.4
COST OF SALES:
New vehicle retail sales 4,028,164 3,656,825 10.2
Used vehicle retail sales 1,610,293 1,410,768 14.1
Used vehicle wholesale
sales 281,434 242,267 16.2
Parts and service 397,079 358,004 10.9
Total cost of sales 6,316,970 5,667,864 11.5
GROSS PROFIT 1,081,979 971,225 11.4
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 793,761 731,455 8.5
DEPRECIATION AND
AMORTIZATION EXPENSE 31,424 26,390 19.1
ASSET IMPAIRMENTS 11,094 1,174 845.0
OPERATING INCOME 245,700 212,206 15.8
OTHER EXPENSE:
Floorplan interest expense (31,695) (30,927) 2.5
Other interest expense,
net (36,326) (28,783) 26.2
Other expense, net - (789) (100.0)
Loss on repurchase of
long-term debt (46,403) - 100.0
INCOME BEFORE INCOME TAXES 131,276 151,707 (13.5)
PROVISION FOR INCOME TAXES (56,949) (59,436) (4.2)
NET INCOME $74,327 $92,271 (19.4)
======= =======
Earnings allocated to
participating securities $(2,769) $(3,843) (27.9)
Earnings available to
diluted common shares $71,558 $88,428 (19.1)
======= =======
DILUTED EARNINGS PER SHARE $2.82 $3.52 (19.9)
Weighted average dilutive
common shares outstanding 25,363 25,153 0.8
Weighted average
participating securities 973 1,095 (11.1)
--- -----
Total weighted average
shares outstanding 26,336 26,248 0.3
Group 1 Automotive, Inc.
Consolidated Balance Sheets
(Dollars in thousands)
September 30, December 31,
2014 2013 % Change
---- ---- --------
ASSETS: (Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $50,652 $20,215 150.6
Contracts in transit and
vehicle receivables, net 190,641 225,156 (15.3)
Accounts and notes
receivable, net 138,735 135,058 2.7
Inventories, net 1,490,520 1,542,318 (3.4)
Deferred income taxes 17,137 21,150 (19.0)
Prepaid expenses and other
current assets 41,570 24,041 72.9
------ ------
Total current assets 1,929,255 1,967,938 (2.0)
--------- ---------
PROPERTY AND EQUIPMENT, net 859,339 796,356 7.9
GOODWILL AND INTANGIBLE
FRANCHISE RIGHTS 1,160,666 1,038,808 11.7
OTHER ASSETS 13,249 16,376 (19.1)
Total assets $3,962,509 $3,819,478 3.7
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES:
Floorplan notes payable -
credit facility and other $1,077,097 $1,143,104 (5.8)
Offset account related to
floorplan notes payable -
credit facility (37,516) (56,198) (33.2)
Floorplan notes payable -
manufacturer affiliates 293,846 346,572 (15.2)
Offset account related to
floorplan notes payable -
manufacturer affiliates (25,000) - 100.0
Current maturities of long-
term debt and short-term
financing 41,021 36,225 13.2
Accounts payable 292,971 254,930 14.9
Accrued expenses 160,220 140,543 14.0
Total current liabilities 1,802,639 1,865,176 (3.4)
2.25% CONVERTIBLE SENIOR
NOTES (aggregate principal
of $0 and $182,753 at
September 30, 2014 and
December 31, 2013,
respectively) - 160,334 (100.0)
3.00% CONVERTIBLE SENIOR
NOTES (aggregate principal
of $0 and $115,000 at
September 30, 2014 and
December 31, 2013,
respectively) - 84,305 (100.0)
5.00% SENIOR NOTES (aggregate
principal of $550,000 at
September 30, 2014) 539,822 - 100.0
MORTGAGE FACILITY, net of
current maturities 55,746 64,271 (13.3)
ACQUISITION LINE - 60,000 (100.0)
OTHER REAL ESTATE RELATED AND
LONG-TERM DEBT, net of
current maturities 289,652 250,958 15.4
CAPITAL LEASE OBLIGATIONS
RELATED TO REAL ESTATE, net
of current maturities 53,279 43,821 21.6
DEFERRED INCOME TAXES 148,304 152,291 (2.6)
LIABILITIES FROM INTEREST
RATE RISK MANAGEMENT
ACTIVITIES 23,483 26,078 (10.0)
OTHER LIABILITIES 64,259 47,975 33.9
COMMITMENTS AND CONTINGENCIES
TEMPORARY EQUITY -REDEEMABLE
EQUITY PORTION OF THE 2.25%
and 3.00% CONVERTIBLE SENIOR
NOTES - 29,094 (100.0)
STOCKHOLDERS' EQUITY:
Common stock 258 257 0.4
Additional paid-in capital 286,354 368,641 (22.3)
Retained earnings 838,174 776,101 8.0
Accumulated other
comprehensive loss (59,500) (51,677) 15.1
Treasury stock (79,961) (58,147) 37.5
Total stockholders' equity 985,325 1,035,175 (4.8)
------- ---------
Total liabilities and
stockholders' equity $3,962,509 $3,819,478 3.7
========== ==========
Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2014 (%) 2013 (%) 2014 (%) 2013 (%)
-------- -------- -------- --------
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
Region Geographic Market
------ -----------------
East Massachusetts 6.6 5.5 5.9 5.9
Georgia 4.8 3.3 4.7 3.6
New Jersey 2.7 4.1 3.2 4.2
New Hampshire 2.1 2.6 2.2 2.4
Louisiana 1.6 2.1 1.7 2.3
South Carolina 1.6 1.5 1.5 1.5
Mississippi 1.4 1.6 1.4 1.6
Florida 1.4 1.3 1.4 1.3
New York 1.2 2.4 1.7 2.7
Alabama 0.7 0.8 0.8 0.8
Maryland 0.5 0.6 0.5 0.6
24.6 25.8 25.0 26.9
West Texas 37.1 32.0 35.4 32.4
California 9.3 8.7 9.6 10.7
Oklahoma 8.6 8.0 8.4 7.8
Kansas 2.1 2.5 2.3 2.5
Louisiana 0.6 0.7 0.6 0.3
57.7 51.9 56.3 53.7
International Brazil 9.2 12.1 9.8 10.2
United Kingdom 8.5 10.2 8.9 9.2
100.0 100.0 100.0 100.0
===== ===== ===== =====
NEW VEHICLE UNIT SALES BRAND MIX:
---------------------------------
Toyota/Scion/Lexus 28.3 26.9 27.2 27.0
BMW/MINI 10.7 11.1 11.2 10.7
Honda/Acura 10.5 11.6 11.2 12.1
Ford/Lincoln 10.4 12.3 11.1 11.8
Nissan/Infiniti 8.9 9.8 9.3 10.2
Chevrolet/GMC/Buick/Cadillac 7.0 4.6 6.0 4.8
Volkswagen/Audi/Porsche 6.2 6.6 6.3 6.5
Hyundai/Kia 5.7 5.0 5.5 4.7
Chrysler/Dodge/Jeep/RAM 4.4 3.9 4.4 4.0
Mercedes-Benz/smart/Sprinter 4.2 3.8 4.2 4.2
Other 3.7 4.4 3.6 4.0
100.0 100.0 100.0 100.0
===== ===== ===== =====
Group 1 Automotive, Inc.
Additional Information - U.S.
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended September 30,
--------------------------------
2014 2013 % Change
---- ---- --------
REVENUES:
New
vehicle
retail
sales $1,245,430 $1,091,221 14.1
Used
vehicle
retail
sales 515,911 443,716 16.3
Used
vehicle
wholesale
sales 75,272 59,833 25.8
------ ------
Total
used 591,183 503,549 17.4
Parts
and
service 249,724 218,880 14.1
Finance
and
insurance 89,268 75,728 17.9
------ ------
Total $2,175,605 $1,889,378 15.1
GROSS MARGIN %:
New
vehicle
retail
sales 5.0 5.0
Used
vehicle
retail
sales 7.4 8.1
Used
vehicle
wholesale
sales (1.9) (2.3)
Total
used 6.2 6.9
Parts
and
service 53.6 52.9
Finance
and
insurance 100.0 100.0
Total 14.8 14.8
GROSS PROFIT:
New
vehicle
retail
sales $61,975 $54,086 14.6
Used
vehicle
retail
sales 38,251 35,937 6.4
Used
vehicle
wholesale
sales (1,431) (1,373) 4.2
------ ------
Total
used 36,820 34,564 6.5
Parts
and
service 133,874 115,887 15.5
Finance
and
insurance 89,268 75,728 17.9
------ ------
Total $321,937 $280,265 14.9
UNITS SOLD:
Retail
new
vehicles
sold 36,649 32,866 11.5
Retail
used
vehicles
sold 24,917 22,206 12.2
Wholesale
used
vehicles
sold 11,984 10,455 14.6
------ ------
Total
used 36,901 32,661 13.0
AVERAGE RETAIL SALES PRICE:
New
vehicle
retail $33,983 $33,202 2.4
Used
vehicle
retail $20,705 $19,982 3.6
GROSS PROFIT PER UNIT SOLD:
New
vehicle
retail
sales $1,691 $1,646 2.7
Used
vehicle
retail
sales 1,535 1,618 (5.1)
Used
vehicle
wholesale
sales (119) (131) (9.2)
Total
used 998 1,058 (5.7)
Finance
and
insurance
(per
retail
unit) $1,450 $1,375 5.5
OTHER: (1)
SG&A
expenses $234,849 $207,494 13.2
SG&A
as %
revenues 10.8 11.0
SG&A
as %
gross
profit 72.9 74.0
Operating
margin
% 3.6 3.4
Pretax
margin
% 2.6 2.5
INTEREST EXPENSE:
Floorplan
interest $(8,543) $(8,087) 5.6
Floorplan
assistance 11,876 10,108 17.5
------ ------
Net
floorplan
income $3,333 $2,021 64.9
Other
interest
expense,
net $(12,265) $(9,650) 27.1
Nine Months Ended September 30,
-------------------------------
2014 2013 % Change
---- ---- --------
REVENUES:
New
vehicle
retail
sales $3,449,303 $3,132,461 10.1
Used
vehicle
retail
sales 1,440,473 1,310,629 9.9
Used
vehicle
wholesale
sales 208,392 174,227 19.6
------- -------
Total
used 1,648,865 1,484,856 11.0
Parts
and
service 723,839 659,318 9.8
Finance
and
insurance 248,820 216,184 15.1
------- -------
Total $6,070,827 $5,492,819 10.5
GROSS MARGIN %:
New
vehicle
retail
sales 5.1 5.2
Used
vehicle
retail
sales 8.0 8.5
Used
vehicle
wholesale
sales 0.9 0.6
Total
used 7.1 7.6
Parts
and
service 53.6 53.2
Finance
and
insurance 100.0 100.0
Total 15.3 15.4
GROSS PROFIT:
New
vehicle
retail
sales $175,006 $163,994 6.7
Used
vehicle
retail
sales 114,613 111,897 2.4
Used
vehicle
wholesale
sales 1,964 1,000 96.4
----- -----
Total
used 116,577 112,897 3.3
Parts
and
service 388,042 350,608 10.7
Finance
and
insurance 248,820 216,184 15.1
------- -------
Total $928,445 $843,683 10.0
UNITS SOLD:
Retail
new
vehicles
sold 101,281 94,233 7.5
Retail
used
vehicles
sold 70,367 65,250 7.8
Wholesale
used
vehicles
sold 32,395 30,052 7.8
Total
used 102,762 95,302 7.8
AVERAGE RETAIL SALES PRICE:
New
vehicle
retail $34,057 $33,242 2.5
Used
vehicle
retail $20,471 $20,086 1.9
GROSS PROFIT PER UNIT SOLD:
New
vehicle
retail
sales $1,728 $1,740 (0.7)
Used
vehicle
retail
sales 1,629 1,715 (5.0)
Used
vehicle
wholesale
sales 61 33 84.8
Total
used 1,134 1,185 (4.3)
Finance
and
insurance
(per
retail
unit) $1,450 $1,356 6.9
OTHER: (1)
SG&A
expenses $677,142 $619,562 9.3
SG&A
as %
revenues 11.2 11.3
SG&A
as %
gross
profit 72.9 73.4
Operating
margin
% 3.7 3.7
Pretax
margin
% 2.7 2.7
INTEREST EXPENSE:
Floorplan
interest $(25,489) $(25,027) 1.8
Floorplan
assistance 32,969 28,291 16.5
------ ------
Net
floorplan
income $7,480 $3,264 129.2
Other
interest
expense,
net $(34,327) $(27,991) 22.6
(1) These amounts have been adjusted to
exclude the impact of certain items
to provide additional information
regarding the performance of our
operations and improve period-to-
period comparability. Refer to our
Reconciliation of Certain Non-GAAP
Financial Measures for a description
of the aforementioned adjustments.
Group 1 Automotive, Inc.
Additional Information - U.K.
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended September 30,
--------------------------------
2014 2013 % Change
---- ---- --------
REVENUES:
New
vehicle
retail
sales $134,859 $136,740 (1.4)
Used
vehicle
retail
sales 70,163 59,508 17.9
Used
vehicle
wholesale
sales 21,110 16,959 24.5
------ ------
Total used 91,273 76,467 19.4
Parts and
service 21,272 17,470 21.8
Finance
and
insurance 4,797 4,237 13.2
----- -----
Total $252,201 $234,914 7.4
GROSS MARGIN %:
New
vehicle
retail
sales 6.9 5.7
Used
vehicle
retail
sales 5.9 6.5
Used
vehicle
wholesale
sales (0.8) (1.3)
Total used 4.4 4.8
Parts and
service 55.2 56.1
Finance
and
insurance 100.0 100.0
Total 11.8 10.9
GROSS PROFIT:
New
vehicle
retail
sales $9,305 $7,848 18.6
Used
vehicle
retail
sales 4,165 3,849 8.2
Used
vehicle
wholesale
sales (174) (214) (18.7)
---- ----
Total used 3,991 3,635 9.8
Parts and
service 11,746 9,793 19.9
Finance
and
insurance 4,797 4,237 13.2
----- -----
Total $29,839 $25,513 17.0
UNITS SOLD:
Retail new
vehicles
sold 3,773 4,306 (12.4)
Retail
used
vehicles
sold 2,649 2,510 5.5
Wholesale
used
vehicles
sold 2,183 2,078 5.1
----- -----
Total used 4,832 4,588 5.3
AVERAGE RETAIL SALES PRICE:
New
vehicle
retail $35,743 $31,756 12.6
Used
vehicle
retail $26,487 $23,708 11.7
GROSS PROFIT PER UNIT SOLD:
New
vehicle
retail
sales $2,466 $1,823 35.3
Used
vehicle
retail
sales 1,572 1,533 2.5
Used
vehicle
wholesale
sales (80) (103) (22.3)
Total used 826 792 4.3
Finance
and
insurance
(per
retail
unit) $747 $622 20.1
OTHER:
SG&A
expenses $22,275 $19,656 13.3
SG&A as %
revenues 8.8 8.4
SG&A as %
gross
profit 74.7 77.0
Operating
margin % 2.7 2.2
Pretax
margin % 2.3 1.9
INTEREST EXPENSE:
Floorplan
interest $(419) $(425) (1.4)
Floorplan
assistance 246 111 121.6
--- ---
Net
floorplan
expense $(173) $(314) (44.9)
Other
interest
expense,
net $(442) $(293) 50.9
Nine Months Ended September 30,
-------------------------------
2014 2013 % Change
---- ---- --------
REVENUES:
New
vehicle
retail
sales $397,263 $342,038 16.1
Used
vehicle
retail
sales 214,900 162,901 31.9
Used
vehicle
wholesale
sales 62,304 48,682 28.0
------ ------
Total used 277,204 211,583 31.0
Parts and
service 62,843 49,265 27.6
Finance
and
insurance 13,916 10,542 32.0
------ ------
Total $751,226 $613,428 22.5
GROSS MARGIN %:
New
vehicle
retail
sales 6.8 6.3
Used
vehicle
retail
sales 5.9 6.2
Used
vehicle
wholesale
sales - (1.5)
Total used 4.6 4.4
Parts and
service 55.1 54.5
Finance
and
insurance 100.0 100.0
Total 11.7 11.2
GROSS PROFIT:
New
vehicle
retail
sales $26,843 $21,641 24.0
Used
vehicle
retail
sales 12,684 10,117 25.4
Used
vehicle
wholesale
sales (4) (743) (99.5)
--- ----
Total used 12,680 9,374 35.3
Parts and
service 34,655 26,871 29.0
Finance
and
insurance 13,916 10,542 32.0
------ ------
Total $88,094 $68,428 28.7
UNITS SOLD:
Retail new
vehicles
sold 11,144 10,738 3.8
Retail
used
vehicles
sold 8,108 6,762 19.9
Wholesale
used
vehicles
sold 6,539 5,772 13.3
Total used 14,647 12,534 16.9
AVERAGE RETAIL SALES PRICE:
New
vehicle
retail $35,648 $31,853 11.9
Used
vehicle
retail $26,505 $24,091 10.0
GROSS PROFIT PER UNIT SOLD:
New
vehicle
retail
sales $2,409 $2,015 19.6
Used
vehicle
retail
sales 1,564 1,496 4.5
Used
vehicle
wholesale
sales (1) (129) (99.2)
Total used 866 748 15.8
Finance
and
insurance
(per
retail
unit) $723 $602 20.1
OTHER:(1)
SG&A
expenses $67,063 $54,120 23.9
SG&A as %
revenues 8.9 8.8
SG&A as %
gross
profit 76.1 79.1
Operating
margin % 2.5 2.0
Pretax
margin % 2.1 1.7
INTEREST EXPENSE:
Floorplan
interest $(1,188) $(1,152) 3.1
Floorplan
assistance 504 111 354.1
--- ---
Net
floorplan
expense $(684) $(1,041) (34.3)
Other
interest
expense,
net $(1,402) $(800) 75.3
(1) These amounts have been adjusted to
exclude the impact of certain items
to provide additional information
regarding the performance of our
operations and improve period-to-
period comparability. Refer to our
Reconciliation of Certain Non-GAAP
Financial Measures for a description
of the aforementioned adjustments.
Group 1 Automotive, Inc.
Additional Information - Brazil
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended September 30,
--------------------------------
2014 2013 % Change
---- ---- --------
REVENUES:
New
vehicle
retail
sales $140,957 $158,706 (11.2)
Used
vehicle
retail
sales 29,850 26,604 12.2
Used
vehicle
wholesale
sales 3,965 9,008 (56.0)
----- -----
Total
used 33,815 35,612 (5.0)
Parts
and
service 20,820 18,966 9.8
Finance
and
insurance 3,050 2,571 18.6
----- -----
Total $198,642 $215,855 (8.0)
GROSS MARGIN %:
New
vehicle
retail
sales 6.3 7.2
Used
vehicle
retail
sales 6.3 6.4
Used
vehicle
wholesale
sales 7.8 0.6
Total
used 6.5 4.9
Parts
and
service 41.9 42.2
Finance
and
insurance 100.0 100.0
Total 11.5 11.0
GROSS PROFIT:
New
vehicle
retail
sales $8,950 $11,361 (21.2)
Used
vehicle
retail
sales 1,895 1,696 11.7
Used
vehicle
wholesale
sales 309 53 483.0
--- ---
Total
used 2,204 1,749 26.0
Parts
and
service 8,729 8,003 9.1
Finance
and
insurance 3,050 2,571 18.6
----- -----
Total $22,933 $23,684 (3.2)
UNITS SOLD:
Retail
new
vehicles
sold 4,072 5,139 (20.8)
Retail
used
vehicles
sold 1,210 1,343 (9.9)
Wholesale
used
vehicles
sold 583 912 (36.1)
--- ---
Total
used 1,793 2,255 (20.5)
AVERAGE RETAIL SALES PRICE:
New
vehicle
retail $34,616 $30,883 12.1
Used
vehicle
retail $24,669 $19,809 24.5
GROSS PROFIT PER UNIT SOLD:
New
vehicle
retail
sales $2,198 $2,211 (0.6)
Used
vehicle
retail
sales 1,566 1,263 24.0
Used
vehicle
wholesale
sales 530 58 813.8
Total
used 1,229 776 58.4
Finance
and
insurance
(per
retail
unit) $577 $397 45.3
OTHER: (1)
SG&A
expenses $19,920 $20,277 (1.8)
SG&A as
%
revenues 10.0 9.4
SG&A as
% gross
profit 86.9 85.6
Operating
margin
% 1.2 1.4
Pretax
margin
% 0.2 0.3
INTEREST EXPENSE:
Floorplan
interest $(1,490) $(2,178) (31.6)
Floorplan
assistance - - -
--- ---
Net
floorplan
expense $(1,490) $(2,178) (31.6)
Other
interest
expense,
net $(539) $(29) 1,758.6
Nine Months Ended September 30,
-------------------------------
2014 2013 (2) % Change
---- ------- --------
REVENUES:
New
vehicle
retail
sales $409,580 $398,622 2.7
Used
vehicle
retail
sales 87,698 62,501 40.3
Used
vehicle
wholesale
sales 13,795 20,758 (33.5)
------ ------
Total
used 101,493 83,259 21.9
Parts
and
service 57,658 45,193 27.6
Finance
and
insurance 8,165 5,768 41.6
----- -----
Total $576,896 $532,842 8.3
GROSS MARGIN %:
New
vehicle
retail
sales 6.4 7.7
Used
vehicle
retail
sales 6.2 5.2
Used
vehicle
wholesale
sales 8.0 5.5
Total
used 6.5 5.3
Parts
and
service 42.6 40.5
Finance
and
insurance 100.0 100.0
Total 11.3 11.1
GROSS PROFIT: -
New
vehicle
retail
sales $26,133 $30,661 (14.8)
Used
vehicle
retail
sales 5,481 3,249 68.7
Used
vehicle
wholesale
sales 1,097 1,143 (4.0)
----- -----
Total
used 6,578 4,392 49.8
Parts
and
service 24,564 18,293 34.3
Finance
and
insurance 8,165 5,768 41.6
----- -----
Total $65,440 $59,114 10.7
UNITS SOLD:
Retail
new
vehicles
sold 12,274 11,967 2.6
Retail
used
vehicles
sold 3,899 2,919 33.6
Wholesale
used
vehicles
sold 1,830 2,028 (9.8)
----- -----
Total
used 5,729 4,947 15.8
AVERAGE RETAIL SALES PRICE:
New
vehicle
retail $33,370 $33,310 0.2
Used
vehicle
retail $22,492 $21,412 5.0
GROSS PROFIT PER UNIT SOLD:
New
vehicle
retail
sales $2,129 $2,562 (16.9)
Used
vehicle
retail
sales 1,406 1,113 26.3
Used
vehicle
wholesale
sales 599 564 6.2
Total
used 1,148 888 29.3
Finance
and
insurance
(per
retail
unit) $505 $387 30.5
OTHER: (1)
SG&A
expenses $60,342 $48,748 23.8
SG&A as
%
revenues 10.5 9.1
SG&A as
% gross
profit 92.2 82.5
Operating
margin
% 0.6 1.7
Pretax
margin
% (0.4) 0.9
INTEREST EXPENSE:
Floorplan
interest $(5,018) $(4,748) 5.7
Floorplan
assistance - - -
--- ---
Net
floorplan
expense $(5,018) $(4,748) 5.7
Other
interest
(expense)
income,
net $(597) $7 (8,628.6)
(1) These amounts have been adjusted to
exclude the impact of certain items
to provide additional information
regarding the performance of our
operations and improve period-to-
period comparability. Refer to our
Reconciliation of Certain Non-GAAP
Financial Measures for a description
of the aforementioned adjustments.
(2) Results are for the period from the
date of acquisition (February 28,
2013) through September 30, 2013.
Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended September 30,
--------------------------------
2014 2013 % Change
---- ---- --------
REVENUES:
New
vehicle
retail
sales $1,521,246 $1,386,667 9.7
Used
vehicle
retail
sales 615,924 529,828 16.2
Used
vehicle
wholesale
sales 100,347 85,800 17.0
------- ------
Total
used 716,271 615,628 16.3
Parts and
service 291,816 255,316 14.3
Finance
and
insurance 97,115 82,536 17.7
------ ------
Total $2,626,448 $2,340,147 12.2
GROSS MARGIN %:
New
vehicle
retail
sales 5.3 5.3
Used
vehicle
retail
sales 7.2 7.8
Used
vehicle
wholesale
sales (1.3) (1.8)
Total
used 6.0 6.5
Parts and
service 52.9 52.4
Finance
and
insurance 100.0 100.0
Total 14.3 14.1
GROSS PROFIT:
New
vehicle
retail
sales $80,230 $73,295 9.5
Used
vehicle
retail
sales 44,311 41,482 6.8
Used
vehicle
wholesale
sales (1,296) (1,534) (15.5)
------ ------
Total
used 43,015 39,948 7.7
Parts and
service 154,349 133,683 15.5
Finance
and
insurance 97,115 82,536 17.7
------ ------
Total $374,709 $329,462 13.7
UNITS SOLD:
Retail
new
vehicles
sold 44,494 42,311 5.2
Retail
used
vehicles
sold 28,776 26,059 10.4
Wholesale
used
vehicles
sold 14,750 13,445 9.7
------ ------
Total
used 43,526 39,504 10.2
AVERAGE RETAIL SALES PRICE:
New
vehicle
retail $34,190 $32,773 4.3
Used
vehicle
retail $21,404 $20,332 5.3
GROSS PROFIT PER UNIT SOLD:
New
vehicle
retail
sales $1,803 $1,732 4.1
Used
vehicle
retail
sales 1,540 1,592 (3.3)
Used
vehicle
wholesale
sales (88) (114) (22.8)
Total
used 988 1,011 (2.3)
Finance
and
insurance
(per
retail
unit) $1,325 $1,207 9.8
OTHER: (1)
SG&A
expenses $277,044 $247,427 12.0
SG&A as %
revenues 10.5 10.6
SG&A as %
gross
profit 73.9 75.1
Operating
margin % 3.3 3.1
Pretax
margin % 2.4 2.2
INTEREST EXPENSE:
Floorplan
interest $(10,452) $(10,690) (2.2)
Floorplan
assistance 12,122 10,219 18.6
------ ------
Net
floorplan
income
(expense) $1,670 $(471) 454.6
Other
interest
expense,
net $(13,246) $(9,971) 32.8
Nine Months Ended September 30,
-------------------------------
2014 2013 % Change
---- ---- --------
REVENUES:
New
vehicle
retail
sales $4,256,146 $3,873,121 9.9
Used
vehicle
retail
sales 1,743,071 1,536,031 13.5
Used
vehicle
wholesale
sales 284,491 243,667 16.8
------- -------
Total
used 2,027,562 1,779,698 13.9
Parts and
service 844,340 753,776 12.0
Finance
and
insurance 270,901 232,494 16.5
------- -------
Total $7,398,949 $6,639,089 11.4
GROSS MARGIN %:
New
vehicle
retail
sales 5.4 5.6
Used
vehicle
retail
sales 7.6 8.2
Used
vehicle
wholesale
sales 1.1 0.6
Total
used 6.7 7.1
Parts and
service 53.0 52.5
Finance
and
insurance 100.0 100.0
Total 14.6 14.6
GROSS PROFIT:
New
vehicle
retail
sales $227,982 $216,296 5.4
Used
vehicle
retail
sales 132,778 125,263 6.0
Used
vehicle
wholesale
sales 3,057 1,400 118.4
----- -----
Total
used 135,835 126,663 7.2
Parts and
service 447,261 395,772 13.0
Finance
and
insurance 270,901 232,494 16.5
------- -------
Total $1,081,979 $971,225 11.4
UNITS SOLD:
Retail
new
vehicles
sold 124,699 116,938 6.6
Retail
used
vehicles
sold 82,374 74,931 9.9
Wholesale
used
vehicles
sold 40,764 37,852 7.7
------ ------
Total
used 123,138 112,783 9.2
AVERAGE RETAIL SALES PRICE:
New
vehicle
retail $34,131 $33,121 3.1
Used
vehicle
retail $21,160 $20,499 3.2
GROSS PROFIT PER UNIT SOLD:
New
vehicle
retail
sales $1,828 $1,850 (1.2)
Used
vehicle
retail
sales 1,612 1,672 (3.6)
Used
vehicle
wholesale
sales 75 37 102.7
Total
used 1,103 1,123 (1.8)
Finance
and
insurance
(per
retail
unit) $1,308 $1,212 7.9
OTHER: (1)
SG&A
expenses $804,547 $722,430 11.4
SG&A as %
revenues 10.9 10.9
SG&A as %
gross
profit 74.4 74.4
Operating
margin % 3.3 3.3
Pretax
margin % 2.4 2.5
INTEREST EXPENSE:
Floorplan
interest $(31,695) $(30,927) 2.5
Floorplan
assistance 33,473 28,402 17.9
------ ------
Net
floorplan
income
(expense) $1,778 $(2,525) 170.4
Other
interest
expense,
net $(36,326) $(28,783) 26.2
(1) These amounts have been adjusted to
exclude the impact of certain items
to provide additional information
regarding the performance of our
operations and improve period-to-
period comparability. Refer to our
Reconciliation of Certain Non-GAAP
Financial Measures for a description
of the aforementioned adjustments.
Group 1 Automotive, Inc.
Additional Information - Same Store U.S. (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended September 30,
--------------------------------
2014 2013 % Change
---- ---- --------
REVENUES:
New vehicle
retail
sales $1,120,864 $1,053,601 6.4
Used
vehicle
retail
sales 459,223 429,480 6.9
Used
vehicle
wholesale
sales 67,404 57,456 17.3
------ ------
Total used 526,627 486,936 8.2
Parts and
service 225,737 212,800 6.1
Finance and
insurance 81,553 74,479 9.5
------ ------
Total $1,954,781 $1,827,816 6.9
GROSS MARGIN %:
New vehicle
retail
sales 4.9 5.0
Used
vehicle
retail
sales 7.5 8.2
Used
vehicle
wholesale
sales (1.6) (1.6)
Total used 6.3 7.0
Parts and
service 53.6 52.8
Finance and
insurance 100.0 100.0
Total 14.9 15.0
GROSS PROFIT:
New vehicle
retail
sales $55,456 $52,448 5.7
Used
vehicle
retail
sales 34,303 35,055 (2.1)
Used
vehicle
wholesale
sales (1,091) (900) 21.2
------ ----
Total used 33,212 34,155 (2.8)
Parts and
service 120,951 112,461 7.5
Finance and
insurance 81,553 74,479 9.5
------ ------
Total $291,172 $273,543 6.4
UNITS SOLD:
Retail new
vehicles
sold 33,100 31,717 4.4
Retail used
vehicles
sold 22,180 21,521 3.1
Wholesale
used
vehicles
sold 10,800 10,128 6.6
------ ------
Total used 32,980 31,649 4.2
AVERAGE RETAIL SALES PRICE:
New vehicle
retail $33,863 $33,219 1.9
Used
vehicle
retail $20,704 $19,956 3.7
GROSS PROFIT PER UNIT SOLD:
New vehicle
retail
sales $1,675 $1,654 1.3
Used
vehicle
retail
sales 1,547 1,629 (5.0)
Used
vehicle
wholesale
sales (101) (89) 13.5
Total used 1,007 1,079 (6.7)
Finance and
insurance
(per
retail
unit) $1,475 $1,399 5.4
OTHER:(2)
SG&A
expenses $209,060 $199,003 5.1
SG&A as %
revenues 10.7 10.9
SG&A as %
gross
profit 71.8 72.8
Operating
margin % 3.8 3.6
Nine Months Ended September 30,
-------------------------------
2014 2013 % Change
---- ---- --------
REVENUES:
New vehicle
retail
sales $3,179,584 $3,016,656 5.4
Used
vehicle
retail
sales 1,324,402 1,268,399 4.4
Used
vehicle
wholesale
sales 192,324 166,340 15.6
------- -------
Total used 1,516,726 1,434,739 5.7
Parts and
service 669,764 634,049 5.6
Finance and
insurance 233,426 210,726 10.8
------- -------
Total $5,599,500 $5,296,170 5.7
GROSS MARGIN %:
New vehicle
retail
sales 5.1 5.3
Used
vehicle
retail
sales 7.9 8.6
Used
vehicle
wholesale
sales 1.3 1.0
Total used 7.1 7.7
Parts and
service 53.5 53.2
Finance and
insurance 100.0 100.0
Total 15.4 15.4
GROSS PROFIT:
New vehicle
retail
sales $160,865 $159,600 0.8
Used
vehicle
retail
sales 104,774 108,705 (3.6)
Used
vehicle
wholesale
sales 2,416 1,677 44.1
----- -----
Total used 107,190 110,382 (2.9)
Parts and
service 358,367 337,018 6.3
Finance and
insurance 233,426 210,726 10.8
------- -------
Total $859,848 $817,726 5.2
UNITS SOLD:
Retail new
vehicles
sold 93,447 90,283 3.5
Retail used
vehicles
sold 64,336 63,070 2.0
Wholesale
used
vehicles
sold 30,203 28,766 5.0
------ ------
Total used 94,539 91,836 2.9
AVERAGE RETAIL SALES PRICE:
New vehicle
retail $34,026 $33,413 1.8
Used
vehicle
retail $20,586 $20,111 2.4
GROSS PROFIT PER UNIT SOLD:
New vehicle
retail
sales $1,721 $1,768 (2.7)
Used
vehicle
retail
sales 1,629 1,724 (5.5)
Used
vehicle
wholesale
sales 80 58 37.9
Total used 1,134 1,202 (5.7)
Finance and
insurance
(per
retail
unit) $1,479 $1,374 7.6
OTHER: (2)
SG&A
expenses $620,825 $591,946 4.9
SG&A as %
revenues 11.1 11.2
SG&A as %
gross
profit 72.2 72.4
Operating
margin % 3.8 3.8
(1) Same store amounts include the
results for the identical months in
each period presented in the
comparison, commencing with the
first full month we owned the
dealership and, in the case of
dispositions, ending with the last
full month we owned it. Same store
results also include the activities
of our corporate office.
(2) These amounts have been adjusted to
exclude the impact of certain items
to provide additional information
regarding the performance of our
operations and improve period-to-
period comparability. Refer to our
Reconciliation of Certain Non-GAAP
Financial Measures for a description
of the aforementioned adjustments.
Group 1 Automotive, Inc.
Additional Information - Same Store U.K. (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended September 30,
--------------------------------
2014 2013 % Change
---- ---- --------
REVENUES:
New vehicle
retail
sales $134,858 $136,738 (1.4)
Used vehicle
retail
sales 70,164 59,508 17.9
Used vehicle
wholesale
sales 21,110 16,960 24.5
------ ------
Total used 91,274 76,468 19.4
Parts and
service 21,272 17,471 21.8
Finance and
insurance 4,797 4,233 13.3
----- -----
Total $252,201 $234,910 7.4
GROSS MARGIN %:
New vehicle
retail
sales 6.9 5.7
Used vehicle
retail
sales 5.9 6.5
Used vehicle
wholesale
sales (0.8) (1.3)
Total used 4.4 4.8
Parts and
service 55.2 56.1
Finance and
insurance 100.0 100.0
Total 11.8 10.9
GROSS PROFIT:
New vehicle
retail
sales $9,303 $7,848 18.5
Used vehicle
retail
sales 4,166 3,848 8.3
Used vehicle
wholesale
sales (175) (213) (17.8)
---- ----
Total used 3,991 3,635 9.8
Parts and
service 11,748 9,794 20.0
Finance and
insurance 4,797 4,233 13.3
----- -----
Total $29,839 $25,510 17.0
UNITS SOLD:
Retail new
vehicles
sold 3,773 4,306 (12.4)
Retail used
vehicles
sold 2,649 2,510 5.5
Wholesale
used
vehicles
sold 2,183 2,078 5.1
----- -----
Total used 4,832 4,588 5.3
AVERAGE RETAIL SALES PRICE:
New vehicle
retail $35,743 $31,755 12.6
Used vehicle
retail $26,487 $23,708 11.7
GROSS PROFIT PER UNIT SOLD:
New vehicle
retail
sales $2,466 $1,823 35.3
Used vehicle
retail
sales 1,573 1,533 2.6
Used vehicle
wholesale
sales (80) (103) (22.3)
Total used 826 792 4.3
Finance and
insurance
(per retail
unit) $747 $621 20.3
OTHER:
SG&A
expenses $22,278 $19,662 13.3
SG&A as %
revenues 8.8 8.4
SG&A as %
gross
profit 74.7 77.1
Operating
margin % 2.7 2.2
Nine Months Ended September 30,
-------------------------------
2014 2013 % Change
---- ---- --------
REVENUES:
New vehicle
retail
sales $388,921 $342,038 13.7
Used vehicle
retail
sales 202,968 162,901 24.6
Used vehicle
wholesale
sales 60,407 48,682 24.1
------ ------
Total used 263,375 211,583 24.5
Parts and
service 59,860 49,265 21.5
Finance and
insurance 13,281 10,530 26.1
------ ------
Total $725,437 $613,416 18.3
GROSS MARGIN %:
New vehicle
retail
sales 6.8 6.3
Used vehicle
retail
sales 5.9 6.2
Used vehicle
wholesale
sales (0.1) (1.5)
Total used 4.5 4.4
Parts and
service 55.3 54.5
Finance and
insurance 100.0 100.0
Total 11.7 11.1
GROSS PROFIT:
New vehicle
retail
sales $26,514 $21,629 22.6
Used vehicle
retail
sales 11,996 10,112 18.6
Used vehicle
wholesale
sales (44) (743) (94.1)
--- ----
Total used 11,952 9,369 27.6
Parts and
service 33,098 26,862 23.2
Finance and
insurance 13,281 10,530 26.1
------ ------
Total $84,845 $68,390 24.1
UNITS SOLD:
Retail new
vehicles
sold 10,728 10,738 (0.1)
Retail used
vehicles
sold 7,422 6,762 9.8
Wholesale
used
vehicles
sold 6,102 5,772 5.7
----- -----
Total used 13,524 12,534 7.9
AVERAGE RETAIL SALES PRICE:
New vehicle
retail $36,253 $31,853 13.8
Used vehicle
retail $27,347 $24,091 13.5
GROSS PROFIT PER UNIT SOLD:
New vehicle
retail
sales $2,471 $2,014 22.7
Used vehicle
retail
sales 1,616 1,495 8.1
Used vehicle
wholesale
sales (7) (129) (94.6)
Total used 884 747 18.3
Finance and
insurance
(per retail
unit) $732 $602 21.6
OTHER: (2)
SG&A
expenses $64,254 $54,117 18.7
SG&A as %
revenues 8.9 8.8
SG&A as %
gross
profit 75.7 79.1
Operating
margin % 2.5 2.0
(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) These amounts have been adjusted to
exclude the impact of certain items
to provide additional information
regarding the performance of our
operations and improve period-to-
period comparability. Refer to our
Reconciliation of Certain Non-GAAP
Financial Measures for a description
of the aforementioned adjustments.
Group 1 Automotive, Inc.
Additional Information - Same Store Brazil (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended September 30,
--------------------------------
2014 2013 % Change
---- ---- --------
REVENUES:
New vehicle
retail
sales $139,640 $158,705 (12.0)
Used vehicle
retail
sales 29,408 26,604 10.5
Used vehicle
wholesale
sales 3,965 9,008 (56.0)
----- -----
Total used 33,373 35,612 (6.3)
Parts and
service 20,560 18,966 8.4
Finance and
insurance 3,051 2,571 18.7
----- -----
Total $196,624 $215,854 (8.9)
GROSS MARGIN %:
New vehicle
retail
sales 6.4 7.2
Used vehicle
retail
sales 6.3 6.4
Used vehicle
wholesale
sales 7.8 0.6
Total used 6.5 4.9
Parts and
service 42.0 42.2
Finance and
insurance 100.0 100.0
Total 11.6 11.0
GROSS PROFIT:
New vehicle
retail
sales $8,883 $11,359 (21.8)
Used vehicle
retail
sales 1,862 1,697 9.7
Used vehicle
wholesale
sales 310 53 484.9
--- ---
Total used 2,172 1,750 24.1
Parts and
service 8,627 8,003 7.8
Finance and
insurance 3,051 2,571 18.7
----- -----
Total $22,733 $23,683 (4.0)
UNITS SOLD:
Retail new
vehicles
sold 4,013 5,139 (21.9)
Retail used
vehicles
sold 1,192 1,343 (11.2)
Wholesale
used
vehicles
sold 571 912 (37.4)
--- ---
Total used 1,763 2,255 (21.8)
AVERAGE RETAIL SALES PRICE:
New vehicle
retail $34,797 $30,882 12.7
Used vehicle
retail $24,671 $19,809 24.5
GROSS PROFIT PER UNIT SOLD:
New vehicle
retail
sales $2,214 $2,210 0.2
Used vehicle
retail
sales 1,562 1,264 23.6
Used vehicle
wholesale
sales 543 58 836.2
Total used 1,232 776 58.8
Finance and
insurance
(per retail
unit) $586 $397 47.6
OTHER:(2)
SG&A
expenses $19,499 $20,276 (3.8)
SG&A as %
revenues 9.9 9.4
SG&A as %
gross
profit 85.8 85.6
Operating
margin % 1.4 1.4
Nine Months Ended September 30,
-------------------------------
2014 2013 (3) % Change
---- ------- --------
REVENUES:
New vehicle
retail
sales $320,847 $398,622 (19.5)
Used vehicle
retail
sales 65,774 62,501 5.2
Used vehicle
wholesale
sales 10,005 20,758 (51.8)
------ ------
Total used 75,779 83,259 (9.0)
Parts and
service 45,622 45,193 0.9
Finance and
insurance 6,532 5,768 13.2
----- -----
Total $448,780 $532,842 (15.8)
GROSS MARGIN %:
New vehicle
retail
sales 6.4 7.7
Used vehicle
retail
sales 6.2 5.2
Used vehicle
wholesale
sales 8.0 5.5
Total used 6.4 5.3
Parts and
service 42.0 40.5
Finance and
insurance 100.0 100.0
Total 11.4 11.1
GROSS PROFIT:
New vehicle
retail
sales $20,598 $30,661 (32.8)
Used vehicle
retail
sales 4,057 3,249 24.9
Used vehicle
wholesale
sales 802 1,143 (29.8)
--- -----
Total used 4,859 4,392 10.6
Parts and
service 19,150 18,293 4.7
Finance and
insurance 6,532 5,768 13.2
----- -----
Total $51,139 $59,114 (13.5)
UNITS SOLD:
Retail new
vehicles
sold 9,343 11,967 (21.9)
Retail used
vehicles
sold 2,797 2,919 (4.2)
Wholesale
used
vehicles
sold 1,292 2,028 (36.3)
----- -----
Total used 4,089 4,947 (17.3)
AVERAGE RETAIL SALES PRICE:
New vehicle
retail $34,341 $33,310 3.1
Used vehicle
retail $23,516 $21,412 9.8
GROSS PROFIT PER UNIT SOLD:
New vehicle
retail
sales $2,205 $2,562 (13.9)
Used vehicle
retail
sales 1,450 1,113 30.3
Used vehicle
wholesale
sales 621 564 10.1
Total used 1,188 888 33.8
Finance and
insurance
(per retail
unit) $538 $387 39.0
OTHER: (2)
SG&A
expenses $46,706 $48,748 (4.2)
SG&A as %
revenues 10.4 9.1
SG&A as %
gross
profit 91.3 82.5
Operating
margin % 0.7 1.7
(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) These amounts have been adjusted to
exclude the impact of certain items
to provide additional information
regarding the performance of our
operations and improve period-to-
period comparability. Refer to our
Reconciliation of Certain Non-GAAP
Financial Measures for a description
of the aforementioned adjustments.
(3) Results are for the period from the
date of acquisition (February 28,
2013) through September 30, 2013.
Group 1 Automotive, Inc.
Additional Information - Same Store Consolidated (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended September 30,
--------------------------------
2014 2013 % Change
---- ---- --------
REVENUES:
New
vehicle
retail
sales $1,395,362 $1,349,044 3.4
Used
vehicle
retail
sales 558,795 515,592 8.4
Used
vehicle
wholesale
sales 92,479 83,424 10.9
------ ------
Total used 651,274 599,016 8.7
Parts and
service 267,569 249,237 7.4
Finance
and
insurance 89,401 81,283 10.0
------ ------
Total $2,403,606 $2,278,580 5.5
GROSS MARGIN %:
New
vehicle
retail
sales 5.3 5.3
Used
vehicle
retail
sales 7.2 7.9
Used
vehicle
wholesale
sales (1.0) (1.3)
Total used 6.0 6.6
Parts and
service 52.8 52.3
Finance
and
insurance 100.0 100.0
Total 14.3 14.2
GROSS PROFIT:
New
vehicle
retail
sales $73,642 $71,655 2.8
Used
vehicle
retail
sales 40,331 40,600 (0.7)
Used
vehicle
wholesale
sales (956) (1,060) (9.8)
---- ------
Total used 39,375 39,540 (0.4)
Parts and
service 141,326 130,258 8.5
Finance
and
insurance 89,401 81,283 10.0
------ ------
Total $343,744 $322,736 6.5
UNITS SOLD:
Retail new
vehicles
sold 40,886 41,162 (0.7)
Retail
used
vehicles
sold 26,021 25,374 2.5
Wholesale
used
vehicles
sold 13,554 13,118 3.3
------ ------
Total used 39,575 38,492 2.8
AVERAGE RETAIL SALES PRICE:
New
vehicle
retail $34,128 $32,774 4.1
Used
vehicle
retail $21,475 $20,320 5.7
GROSS PROFIT PER UNIT SOLD:
New
vehicle
retail
sales $1,801 $1,741 3.4
Used
vehicle
retail
sales 1,550 1,600 (3.1)
Used
vehicle
wholesale
sales (71) (81) (12.3)
Total used 995 1,027 (3.1)
Finance
and
insurance
(per
retail
unit) $1,336 $1,222 9.3
OTHER:(2)
SG&A
expenses $250,837 $238,941 5.0
SG&A as %
revenues 10.4 10.5
SG&A as %
gross
profit 73.0 74.0
Operating
margin % 3.5 3.3
Nine Months Ended September 30,
-------------------------------
2014 2013 % Change
---- ---- --------
REVENUES:
New
vehicle
retail
sales $3,889,352 $3,757,316 3.5
Used
vehicle
retail
sales 1,593,144 1,493,801 6.7
Used
vehicle
wholesale
sales 262,736 235,780 11.4
------- -------
Total used 1,855,880 1,729,581 7.3
Parts and
service 775,246 728,507 6.4
Finance
and
insurance 253,239 227,024 11.5
------- -------
Total $6,773,717 $6,442,428 5.1
GROSS MARGIN %:
New
vehicle
retail
sales 5.3 5.6
Used
vehicle
retail
sales 7.6 8.2
Used
vehicle
wholesale
sales 1.2 0.9
Total used 6.7 7.2
Parts and
service 53.0 52.5
Finance
and
insurance 100.0 100.0
Total 14.7 14.7
GROSS PROFIT:
New
vehicle
retail
sales $207,977 $211,890 (1.8)
Used
vehicle
retail
sales 120,827 122,066 (1.0)
Used
vehicle
wholesale
sales 3,174 2,077 52.8
----- -----
Total used 124,001 124,143 (0.1)
Parts and
service 410,615 382,173 7.4
Finance
and
insurance 253,239 227,024 11.5
------- -------
Total $995,832 $945,230 5.4
UNITS SOLD:
Retail new
vehicles
sold 113,518 112,988 0.5
Retail
used
vehicles
sold 74,555 72,751 2.5
Wholesale
used
vehicles
sold 37,597 36,566 2.8
------ ------
Total used 112,152 109,317 2.6
AVERAGE RETAIL SALES PRICE:
New
vehicle
retail $34,262 $33,254 3.0
Used
vehicle
retail $21,369 $20,533 4.1
GROSS PROFIT PER UNIT SOLD:
New
vehicle
retail
sales $1,832 $1,875 (2.3)
Used
vehicle
retail
sales 1,621 1,678 (3.4)
Used
vehicle
wholesale
sales 84 57 47.4
Total used 1,106 1,136 (2.6)
Finance
and
insurance
(per
retail
unit) $1,346 $1,222 10.1
OTHER: (2)
SG&A
expenses $731,785 $694,811 5.3
SG&A as %
revenues 10.8 10.8
SG&A as %
gross
profit 73.5 73.5
Operating
margin % 3.5 3.5
(1) Same store amounts include the
results for the identical months in
each period presented in the
comparison, commencing with the
first full month we owned the
dealership and, in the case of
dispositions, ending with the last
full month we owned it. Same store
results also include the activities
of our corporate office.
(2) These amounts have been adjusted to
exclude the impact of certain items
to provide additional information
regarding the performance of our
operations and improve period-to-
period comparability. Refer to our
Reconciliation of Certain Non-GAAP
Financial Measures for a description
of the aforementioned adjustments.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - U.S.
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended September 30,
--------------------------------
2014 2013 % Change
---- ---- --------
SG&A RECONCILIATION:
As reported $221,645 $206,635 7.3
Pre-tax adjustments:
Catastrophic events (1,099) (258)
Gain on real estate and dealership
transactions 14,303 1,373
Severance costs - (256)
Adjusted SG&A (1) $234,849 $207,494 13.2
SG&A AS % REVENUES:
Unadjusted 10.2 10.9
Adjusted (1) 10.8 11.0
SG&A AS % GROSS PROFIT:
Unadjusted 68.8 73.7
Adjusted (1) 72.9 74.0
OPERATING MARGIN %
Unadjusted 4.0 3.4
Adjusted (1),(2) 3.6 3.4
PRETAX MARGIN %:
Unadjusted 2.0 2.5
Adjusted (1), (3) 2.6 2.5
SAME STORE SG&A RECONCILIATION:
As reported $210,182 $199,332 5.4
Pre-tax adjustments:
Catastrophic events (1,099) (258)
Loss on real estate and dealership
transactions (23) -
Severance costs - (71)
Adjusted Same Store SG&A (1) $209,060 $199,003 5.1
SAME STORE SG&A AS % REVENUES:
Unadjusted 10.8 10.9
Adjusted (1) 10.7 10.9
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 72.2 72.9
Adjusted (1) 71.8 72.8
SAME STORE OPERATING MARGIN %
Unadjusted 3.7 3.6
Adjusted (1), (4) 3.8 3.6
Nine Months Ended September 30,
-------------------------------
2014 2013 % Change
---- ---- --------
SG&A RECONCILIATION:
As reported $665,547 $626,939 6.2
Pre-tax adjustments:
Catastrophic events (2,775) (12,158)
Gain on real estate and dealership
transactions 14,812 10,196
Severance costs - (256)
Acquisition costs - (5,159)
Legal items (442) -
Adjusted SG&A (1) $677,142 $619,562 9.3
SG&A AS % REVENUES:
Unadjusted 11.0 11.4
Adjusted (1) 11.2 11.3
SG&A AS % OF GROSS PROFIT:
Unadjusted 71.7 74.3
Adjusted (1) 72.9 73.4
OPERATING MARGIN %:
Unadjusted 3.8 3.5
Adjusted (1),(2) 3.7 3.7
PRETAX MARGIN %:
Unadjusted 2.0 2.5
Adjusted (1), (3) 2.7 2.7
SAME STORE SG&A RECONCILIATION:
As reported $624,065 $609,534 2.4
Pre-tax adjustments:
Catastrophic events (2,775) (12,158)
Loss on real estate and dealership
transactions (23) (200)
Severance costs - (71)
Acquisition costs - (5,159)
Legal items (442) -
Adjusted Same Store SG&A (1) $620,825 $591,946 4.9
SAME STORE SG&A AS % REVENUES:
Unadjusted 11.1 11.5
Adjusted (1) 11.1 11.2
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 72.6 74.5
Adjusted (1) 72.2 72.4
SAME STORE OPERATING MARGIN %
Unadjusted 3.7 3.5
Adjusted (1), (4) 3.8 3.8
(1) We have
included
certain non-
GAAP
financial
measures as
defined under
SEC rules,
which exclude
certain
items. These
adjusted
measures are
not measures
of financial
performance
under GAAP.
As required
by SEC rules,
we provide
reconciliations
of these
adjusted
measures to
the most
directly
comparable
GAAP
measures. We
believe that
these
adjusted
financial
measures are
relevant and
useful to
investors
because they
improve the
transparency
of our
disclosure,
provide a
meaningful
presentation
of results
from our core
business
operations
and improve
period-to-
period
comparability
of our
results from
our core
business
operations.
(2) Excludes the
impact of
SG&A
reconciling
items above,
as well as
non-cash
asset
impairment
charges of
$4,252 and
$5,973 for
the three and
nine months
ended
September 30,
2014, and
$565 and
$1,174 for
the three and
nine months
ended
September 30,
2013.
(3) Excludes the
impact of
SG&A
reconciling
items above,
as well as
loss on
repurchase of
long-term
debt of
$22,790 and
$46,403 for
the three and
nine months
ended
September 30,
2014, non-
cash asset
impairment
charges of
$4,252 and
$5,973 for
the three and
nine months
ended
September 30,
2014, and
non-cash
asset
impairment
charges of
$565 and
$1,174 for
the three and
nine months
ended
September 30,
2013.
(4) Excludes the
impact of
Same Store
SG&A
reconciling
items above,
as well as
non-cash
asset
impairment
charges of
$293 and
$2,014 for
the three and
nine months
ended
September 30,
2014, and
$532 and
$1,139 for
the three and
nine months
ended
September 30,
2013,
respectively.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - U.K.
(Unaudited)
(Dollars in thousands, except per share amounts)
Nine Months Ended September 30,
-------------------------------
2014 2013 % Change
---- ---- --------
SG&A RECONCILIATION:
As reported $67,063 $54,262 23.6
Pre-tax adjustments:
Acquisition costs - (142)
Adjusted SG&A (1) $67,063 $54,120 23.9
SG&A AS % REVENUES:
Unadjusted 8.9 8.8
Adjusted (1) 8.9 8.8
SG&A AS % OF GROSS PROFIT:
Unadjusted 76.1 79.3
Adjusted (1) 76.1 79.1
OPERATING MARGIN %:
Unadjusted 2.5 2.0
Adjusted (1),(2) 2.5 2.0
PRETAX MARGIN %:
Unadjusted 2.1 1.7
Adjusted (1),(2) 2.1 1.7
SAME STORE SG&A RECONCILIATION:
As reported $64,254 $54,259 18.4
Pre-tax adjustments:
Acquisition costs - (142)
Adjusted Same Store SG&A (1) $64,254 $54,117 18.7
SAME STORE SG&A AS % REVENUES:
Unadjusted 8.9 8.8
Adjusted (1) 8.9 8.8
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 75.7 79.3
Adjusted (1) 75.7 79.1
SAME STORE OPERATING MARGIN %
Unadjusted 2.5 2.0
Adjusted (1),(2) 2.5 2.0
(1) We have
included
certain non-
GAAP
financial
measures as
defined under
SEC rules,
which exclude
certain
items. These
adjusted
measures are
not measures
of financial
performance
under GAAP.
As required
by SEC rules,
we provide
reconciliations
of these
adjusted
measures to
the most
directly
comparable
GAAP
measures. We
believe that
these
adjusted
financial
measures are
relevant and
useful to
investors
because they
improve the
transparency
of our
disclosure,
provide a
meaningful
presentation
of results
from our core
business
operations
and improve
period-to-
period
comparability
of our
results from
our core
business
operations.
(2) Excludes the
impact of
SG&A
reconciling
items above.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - Brazil
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended September 30,
--------------------------------
2014 2013 % Change
---- ---- --------
SG&A RECONCILIATION:
As reported $20,313 $20,572 (1.3)
Pre-tax adjustments:
Severance costs (393) (295)
Adjusted SG&A (1) $19,920 $20,277 (1.8)
SG&A AS % REVENUES:
Unadjusted 10.2 9.5
Adjusted (1) 10.0 9.4
SG&A AS % GROSS PROFIT:
Unadjusted 88.6 86.9
Adjusted (1) 86.9 85.6
OPERATING MARGIN %
Unadjusted (1.6) 1.2
Adjusted (1),(2) 1.2 1.4
PRETAX MARGIN %:
Unadjusted (2.6) 0.2
Adjusted (1),(3) 0.2 0.3
SAME STORE SG&A RECONCILIATION:
As reported $19,892 $20,571 (3.3)
Pre-tax adjustments:
Severance costs (393) (295)
Adjusted SAME STORE SG&A (1) $19,499 $20,276 (3.8)
SAME STORE SG&A AS % REVENUES:
Unadjusted 10.1 9.5
Adjusted (1) 9.9 9.4
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 87.5 86.9
Adjusted (1) 85.8 85.6
SAME STORE OPERATING MARGIN %
Unadjusted (1.4) 1.2
Adjusted (1),(2) 1.4 1.4
Nine Months Ended September 30,
-------------------------------
2014 2013 (4) % Change
---- ------- --------
SG&A RECONCILIATION:
As reported $61,151 $50,254 21.7
Pre-tax adjustments:
Severance costs (393) (295)
Acquisition costs - (1,211)
Foreign transaction tax (416) -
Adjusted SG&A (1) $60,342 $48,748 23.8
SG&A AS % REVENUES:
Unadjusted 10.6 9.4
Adjusted (1) 10.5 9.1
SG&A AS % OF GROSS PROFIT:
Unadjusted 93.4 85.0
Adjusted (1) 92.2 82.5
OPERATING MARGIN %:
Unadjusted (0.4) 1.5
Adjusted (1),(2) 0.6 1.7
PRETAX MARGIN %:
Unadjusted (1.4) 0.4
Adjusted (1),(3) (0.4) 0.9
SAME STORE SG&A RECONCILIATION:
As reported $47,515 $50,254 (5.5)
Pre-tax adjustments:
Severance costs (393) (295)
Acquisition costs - (1,211)
Foreign transaction tax (416) -
Adjusted SAME STORE SG&A (1) $46,706 $48,748 (4.2)
SAME STORE SG&A AS % REVENUES:
Unadjusted 10.6 9.4
Adjusted (1) 10.4 9.1
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 92.9 85.0
Adjusted (1) 91.3 82.5
SAME STORE OPERATING MARGIN %
Unadjusted (0.6) 1.5
Adjusted (1),(2) 0.7 1.7
(1) We have
included
certain non-
GAAP
financial
measures as
defined under
SEC rules,
which exclude
certain
items. These
adjusted
measures are
not measures
of financial
performance
under GAAP.
As required
by SEC rules,
we provide
reconciliations
of these
adjusted
measures to
the most
directly
comparable
GAAP
measures. We
believe that
these
adjusted
financial
measures are
relevant and
useful to
investors
because they
improve the
transparency
of our
disclosure,
provide a
meaningful
presentation
of results
from our core
business
operations
and improve
period-to-
period
comparability
of our
results from
our core
business
operations.
(2) Excludes the
impact of
SG&A
reconciling
items above,
as well as
non-cash
asset
impairment
charges of
$5,121 for
the three and
nine months
ended
September 30,
2014.
(3) Excludes the
impact of
SG&A
reconciling
items above,
as well as
non-cash
asset
impairment
charges of
$5,121 for
the three and
nine months
ended
September 30,
2014, and
other
expense, net
of $789, for
the period
from the date
of
acquisition
(February 28,
2013) through
September 30,
2013.
(4) Results are
for the
period from
the date of
acquisition
(February 28,
2013) through
September 30,
2013.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - CONSOLIDATED
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended September 30,
--------------------------------
2014 2013 % Change
---- ---- --------
NET INCOME RECONCILIATION:
As reported $26,162 $32,765 (20.2)
After-tax adjustments:
Catastrophic events(5) 671 158
Gain on real estate and dealership
transactions(6) (8,572) (230)
Severance costs (7) 388 454
Acquisition costs including related tax
impact(8) - (630)
Non-cash asset impairment(11) 6,559 349
Loss on repurchase of long-term debt(12) 17,934 -
Tax impact of foreign deductible goodwill (3,358) -
Adjusted net income (1) $39,784 $32,866 21.0
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED
COMMON SHARES RECONCILIATION:
Adjusted net income $39,784 $32,866 21.0
Less: Adjusted earnings allocated to
participating securities 1,520 1,324 14.8
Adjusted net income available to diluted
common shares $38,264 $31,542 21.3
DILUTED INCOME PER COMMON SHARE RECONCILIATION:
As reported $1.03 1.19 (13.4)
After-tax adjustments:
Catastrophic events 0.03 0.01
Gain on real estate and dealership
transactions (0.34) (0.01)
Severance costs 0.01 0.02
Acquisition costs including related tax
impact - (0.02)
Non-cash asset impairment 0.26 0.01
Loss on repurchase of long-term debt 0.71 -
Tax impact of foreign deductible goodwill (0.13) -
Adjusted diluted income per share (1) $1.57 $1.20 30.8
SG&A RECONCILIATION:
As reported $264,233 $246,863 7.0
Pre-tax adjustments:
Catastrophic events (1,099) (258)
Gain on real estate and dealership
transactions 14,303 1,373
Severance costs (393) (551)
Adjusted SG&A (1) $277,044 $247,427 12.0
SG&A AS % REVENUES:
Unadjusted 10.1 10.5
Adjusted (1) 10.5 10.6
SG&A AS % GROSS PROFIT:
Unadjusted 70.5 74.9
Adjusted (1) 73.9 75.1
OPERATING MARGIN %
Unadjusted 3.4 3.1
Adjusted (1), (2) 3.3 3.1
PRETAX MARGIN %:
Unadjusted 1.7 2.2
Adjusted (1), (3) 2.4 2.2
SAME STORE SG&A RECONCILIATION:
As reported $252,352 $239,565 5.3
Pre-tax adjustments:
Catastrophic events (1,099) (258)
Loss on real estate and dealership
transactions (23) -
Severance costs (393) (366)
Adjusted Same Store SG&A (1) $250,837 $238,941 5.0
SAME STORE SG&A AS % REVENUES:
Unadjusted 10.5 10.5
Adjusted (1) 10.4 10.5
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 73.4 74.2
Adjusted (1) 73.0 74.0
SAME STORE OPERATING MARGIN %
Unadjusted 3.2 3.2
Adjusted (1), (4) 3.5 3.3
Nine Months Ended September 30,
-------------------------------
2014 2013 % Change
---- ---- --------
NET INCOME RECONCILIATION:
As reported $74,327 $92,271 (19.4)
After-tax adjustments:
Catastrophic events(5) 1,710 7,419
Gain on real estate and dealership
transactions(6) (8,887) (5,376)
Severance costs (7) 388 454
Acquisition costs including related tax
impact(8) - 6,337
Legal items (9) 274 -
Foreign transaction tax(10) 274 -
Non-cash asset impairment(11) 7,626 718
Loss on repurchase of long-term debt(12) 38,711 -
Tax impact of foreign deductible goodwill (3,358) -
Adjusted net income (1) $111,065 $101,823 9.1
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED
COMMON SHARES RECONCILIATION:
Adjusted net income $111,065 $101,823 9.1
Less: Adjusted earnings allocated to
participating securities 4,126 4,241 (2.7)
Adjusted net income available to diluted
common shares $106,939 $97,582 9.6
DILUTED INCOME PER COMMON SHARE RECONCILIATION:
As reported $2.82 $3.52 (19.9)
After-tax adjustments:
Catastrophic events 0.07 0.28
Gain on real estate and dealership
transactions (0.33) (0.21)
Severance costs 0.01 0.02
Acquisition costs including related tax
impact - 0.24
Legal items 0.01 -
Foreign transaction tax 0.01 -
Non-cash asset impairment 0.29 0.03
Loss on repurchase of long-term debt 1.47 -
Tax impact of foreign deductible goodwill (0.13) -
Adjusted diluted income per share (1) $4.22 $3.88 8.8
SG&A RECONCILIATION:
As reported $793,761 $731,455 8.5
Pre-tax adjustments:
Catastrophic events (2,775) (12,158)
Gain on real estate and dealership
transactions 14,812 10,196
Severance costs (393) (551)
Acquisition costs - (6,512)
Legal items (442) -
Foreign transaction tax (416) -
Adjusted SG&A (1) $804,547 $722,430 11.4
SG&A AS % REVENUES:
Unadjusted 10.7 11.0
Adjusted (1) 10.9 10.9
SG&A AS % OF GROSS PROFIT:
Unadjusted 73.4 75.3
Adjusted (1) 74.4 74.4
OPERATING MARGIN %:
Unadjusted 3.3 3.2
Adjusted (1), (2) 3.3 3.3
PRETAX MARGIN %:
Unadjusted 1.8 2.3
Adjusted (1), (3) 2.4 2.5
SAME STORE SG&A RECONCILIATION:
As reported $735,834 $714,047 3.1
Pre-tax adjustments:
Catastrophic events (2,775) (12,158)
Loss on real estate and dealership
transactions (23) (200)
Severance costs (393) (366)
Acquisition costs - (6,512)
Legal items (442) -
Foreign transaction tax (416) -
Adjusted Same Store SG&A (1) $731,785 $694,811 5.3
SAME STORE SG&A AS % REVENUES:
Unadjusted 10.9 11.1
Adjusted (1) 10.8 10.8
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 73.9 75.5
Adjusted (1) 73.5 73.5
SAME STORE OPERATING MARGIN %
Unadjusted 3.3 3.2
Adjusted (1), (4) 3.5 3.5
(1) We have
included
certain non-
GAAP
financial
measures as
defined under
SEC rules,
which exclude
certain
items. These
adjusted
measures are
not measures
of financial
performance
under GAAP.
As required
by SEC rules,
we provide
reconciliations
of these
adjusted
measures to
the most
directly
comparable
GAAP
measures. We
believe that
these
adjusted
financial
measures are
relevant and
useful to
investors
because they
improve the
transparency
of our
disclosure,
provide a
meaningful
presentation
of results
from our core
business
operations
and improve
period-to-
period
comparability
of our
results from
our core
business
operations.
(2) Excludes the
impact of
SG&A
reconciling
items above,
as well as
non-cash
asset
impairment
charges for
all periods.
(3) Excludes the
impact of
SG&A
reconciling
items above,
non-cash
asset
impairment
charges for
all periods,
as well as
loss on
repurchase of
long-term
debt of
$22,790 and
$46,403 for
the three and
nine months
ended
September 30,
2014,
respectively,
and other
expense, net
of $789, for
the nine
months ended
September 30,
2013.
(4) Excludes the
impact of
Same Store
SG&A
reconciling
items above,
as well as
non-cash
asset
impairment
charges of
$5,414 and
$7,135 for
the three and
nine months
ended
September 30,
2014,
respectively,
and $532 and
$1,139 for
the three and
nine months
ended
September 30,
2013,
respectively.
(5) Adjustment is
net of tax
benefit of
$428 and
$1,065 for
the three and
nine months
ended
September 30,
2014,
respectively,
and $100 and
$4,739 for
the three and
nine months
ended
September 30,
2013,
respectively,
calculated
utilizing the
applicable
federal and
state tax
rates for the
adjustment.
(6) Adjustment is
net of tax
provision of
$5,731 and
$5,925 for
the three and
nine months
ended
September 30,
2014,
respectively,
and $1,143
and $4,820
for the three
and nine
months ended
September 30,
2013,
respectively,
calculated
utilizing the
applicable
federal and
state tax
rates for the
adjustment.
(7) Adjustment is
net of tax
benefit of $5
for the three
and nine
months ended
September 30,
2014, and $97
for the three
and nine
months ended
September 30,
2013,
calculated
utilizing the
applicable
federal and
state tax
rates for the
adjustment.
(8) Adjustment is
net of tax
benefit of
$630 and $963
for the three
and nine
months ended
September 30,
2013,
respectively,
calculated
utilizing the
applicable
federal and
state tax
rates for the
adjustment.
(9) Adjustment is
net of tax
benefit of
$168 for the
nine months
ended
September 30,
2014,
calculated
utilizing the
applicable
federal and
state tax
rates for the
adjustment.
(10) Adjustment is
net of tax
benefit of
$141 for the
nine months
ended
September 30,
2014,
calculated
utilizing the
applicable
federal and
state tax
rates for the
adjustment.
(11) Adjustment is
net of tax
benefit of
$2,815 and
$3,469 for
the three and
nine months
ended
September 30,
2014,
respectively,
and $216 and
$456 for the
three and
nine months
ended
September 30,
2013,
respectively,
calculated
utilizing the
applicable
federal and
state tax
rates for the
adjustment.
(12) Adjustment is
net of tax
benefit of
$4,856 and
$7,692 for
the three and
nine months
ended
September 30,
2014,
respectively,
calculated
utilizing the
applicable
federal and
state tax
rates for the
adjustment.
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SOURCE Group 1 Automotive, Inc.
