GROUP 1 AUTOMOTIVE, INC. HOUSTON, July 24, 2014 /PRNewswire/ --Group 1 Automotive, Inc. (NYSE: GPI), an international, Fortune 500 automotive retailer, today reported 2014 second quarter adjusted net income of $40.0 million, which equates to adjusted earnings per share of $1.47. The quarter included several significant non-recurring charges especially relating to a convertible senior notes redemption, which resulted in GAAP net income and diluted earnings per share of $16.9 million and $0.62, respectively. Adjusted net income increased 0.6 percent from the comparable, adjusted prior-year period. On a GAAP basis, net income decreased 54.9 percent from the comparable prior-year period.
Adjusted net income for the second quarter of 2014 excludes a $20.8 million after-tax loss related to the partial redemption of the Company's 3.00% Convertible Senior Notes, $1.1 million of after-tax, non-cash asset impairment charges, $1.0 million of after-tax charges related to catastrophic events, $0.3 million of after-tax legal settlement charges related to prior years, $0.3 million in net foreign transaction tax and a $0.3 million net, after-tax gain on real estate and dealership transactions. On a comparable basis, adjusted net income for the second quarter of 2013 excludes $6.8 million of after-tax charges related to catastrophic events, a $4.8 million net, after-tax gain on real estate and dealership transactions and $0.4 million of after-tax, non-cash asset impairment charges.
"Our second quarter earnings were significantly impacted by several major factors," said Earl J. Hesterberg, Group 1's president and chief executive officer. "On the positive side, our U.K. operations continue to set new records with a revenue increase of 21.2 percent and a gross profit increase of 24.4 percent. Additionally, our U.S. business continues to grow nicely with revenue up 9.5 percent and increases across all of our major business segments. Also, we took major steps during the quarter to restructure our balance sheet by redeeming a large portion of our 3.00% Convertible Senior Notes and announcing the mandatory redemption of our 2.25% Convertible Senior Notes. This should reduce our ongoing diluted share count by approximately 2.2 million shares, which should provide a major benefit to our shareholders in the future. On the disappointing side, the Brazilian market deteriorated significantly during the quarter due to political and economic uncertainty, as well as major business disruption from the World Cup event. Our Brazilian revenue declined 18.8 percent on a new vehicle unit sales decrease of 22.3 percent. The deterioration in our Brazilian business represents a 15 cent reduction in our total adjusted EPS profit performance versus the comparable period last year."
Consolidated Results for Second Quarter 2014 (year-over-year comparable basis)
-- Total revenue increased 7.6 percent to an all-time quarterly record of
$2.5 billion; total gross profit grew 8.2 percent to $369.1 million.
-- New vehicle revenue increased 6.5 percent, reflecting 2.2 percent higher
unit sales, as U.S. Same Store new vehicle unit sales grew 3.0 percent.
-- Used vehicle retail revenue increased 7.9 percent, reflecting 4.2
percent higher used retail unit sales.
-- Parts and service gross profit increased 10.3 percent on revenue growth
of 8.5 percent. Consolidated Same Store parts and service gross profit
increased 7.0 percent on revenue growth of 5.6 percent.
-- Finance and Insurance (F&I) gross profit increased 12.9 percent. Same
Store consolidated F&I sales grew 9.9 percent as per retail unit
improved $124 to $1,319, a 10.4% increase.
-- Adjusted selling, general and administrative (SG&A) expenses as a
percent of gross profit increased 30 basis points, to 73.1 percent, with
a Same Store expansion of 90 basis points, to 72.7 percent. Both
increases are primarily a result of the deteriorating economic situation
in Brazil. On a GAAP basis, SG&A expenses as a percent of gross profit
increased 10 basis points, to 73.7 percent.
-- Adjusted operating margin declined 10 basis points to 3.5 percent. On a
GAAP basis, operating margin declined 10 basis points, to 3.4 percent.
-- U.K. Same Store revenue increased 21.2 percent driven by 19.3 percent
growth in new vehicle revenue, 25.4 percent growth in used vehicle
revenue, 18.7 percent growth in parts and service, and 27.0 percent
growth in finance and insurance. Gross profit improved 24.5 percent to
$29.5 million.
For the six-month period ended June 30, 2014, the Company reported adjusted net income of $71.3 million, or $2.66 per diluted share, compared to adjusted net income of $69.0 million, or $2.69 per diluted share for the same period in the prior year. On a GAAP basis, net income and EPS for the six-month period ended June 30, 2014 were $48.2 million and $1.80, respectively. The Company's total revenue for the six-month period ended June 30, 2014 increased 11.0 percent to $4.8 billion. Reconciliations of non-GAAP financial measures are included in the attached financial tables.
Segment Results for Second Quarter 2014 (year-over-year comparable basis)
-- United States:
Group 1's U.S. revenues were $2.1 billion, an increase of 9.5 percent. The revenue growth was primarily attributed to unit sales increases of 6.4 percent in new vehicles and 3.6 percent in retail used vehicles, as well as an increase of 8.8 percent in parts and service revenue. The higher revenue drove gross profit growth of 9.1 percent, reflecting the higher new and used retail volumes, expanded parts and service margins of 60 basis points, and an F&I increase of 12.3 percent, or $91, to $1,442 per retail unit.
On a comparable basis, adjusted SG&A expenses as a percent of gross profit improved 30 basis points to 71.3 percent and adjusted operating margin was flat at 4.0 percent. Group 1's U.S. operations accounted for 82.0 percent of total revenues and 85.8 percent of total gross profit.
-- United Kingdom:
Group 1's U.K. operations accounted for 10.0 percent of total revenues and 8.0 percent of total gross profit. Total revenue increased 21.2 percent to $251.3 million, and gross profit increased 24.4 percent. This gross profit increase was driven by new vehicle retail sales growth of 26.2 percent, parts and service growth of 18.2 percent, and an F&I increase of 26.8 percent, on the higher retail unit sales and a $130 increase in F&I per retail unit to $709.
On a comparable basis, SG&A expenses as a percent of gross profit improved 260 basis points to 75.6 percent.
-- Brazil:
Group 1's Brazil operations accounted for 8.0 percent of total revenues and 6.2 percent of total gross profit. Gross profit was $22.8 million on revenues of $199.7 million.
Adjusted SG&A expenses as a percent of gross profit was 95.1 percent and adjusted operating margin was 0.3 percent.
Corporate Development
During the second quarter of 2014, as previously announced, the Company acquired 2 dealerships (Mercedes-Benz and Kia) in Texas that are estimated to generate $140.0 million in annual revenues. In June 2014, the Company was granted a Sprinter franchise in Beverly Hills estimated to generate $15.0 million in annual revenues.
In July 2014, as previously announced, the Company acquired 2 dealerships (Chevrolet and Mazda) in Texas that are estimated to generate $225.0 million in annual revenues.
Year to date, the Company has acquired 9 franchises that are expected to generate $535.0 million in annual revenues and disposed of 2 franchises (Hyundai and Volvo) that generated trailing-twelve-month revenues of $50.0 million.
Convertible Senior Notes
As previously announced, on July 7, 2014, the Company gave notice to holders of its 2.25% Convertible Senior Notes due 2036 that it will redeem all of such outstanding notes on September 4, 2014 at a redemption price equal to 100 percent of the aggregate principal amount of such notes and accrued, but unpaid interest, if any. There is currently $182.8 million in aggregate principal amount of such notes outstanding. Holders may convert their 2.25% Convertible Senior Notes at any time prior to 5:00 p.m. on August 29, 2014, at a conversion rate of 16.8716 shares of the Company's common stock per $1,000 principal amount of such notes with a related observation period beginning on and including July 28, 2014 and ending on and including August 29, 2014.
Additionally, on June 25, 2014, the Company completed its tender offer and purchased $92,450,000 in aggregate principal amount of its outstanding 3.00% Convertible Senior Notes due 2020, representing approximately 80.4 percent of such outstanding notes. The Company has $22,550,000 in aggregate principal amount outstanding of such notes as of June 30, 2014.
Second Quarter Earnings Conference Call Details
Group 1's senior management will host a conference call today at 10 a.m. ET to discuss the second quarter financial results and the Company's outlook and strategy.
The conference call will be simulcast live on the Internet at www.group1auto.com, then click on 'Investor Relations' and then 'Events' or visit 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
Access Code: 1936175
A telephonic replay will be available following the call through August 25, 2014 at 9:00 a.m. ET by dialing:
Domestic: 1-877-344-7529
International: 1-412-317-0088
Access Code: 1936175
About Group 1 Automotive, Inc.
Group 1 owns and operates 153 automotive dealerships, 195 franchises, and 38 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 June 30,
---------------------------
2014 2013 % Change
---- ---- --------
REVENUES:
New
vehicle
retail
sales $1,466,064 $1,376,219 6.5
Used
vehicle
retail
sales 577,250 534,804 7.9
Used
vehicle
wholesale
sales 94,971 83,316 14.0
Parts
and
service 283,207 260,950 8.5
Finance
and
insurance 90,146 79,821 12.9
------ ------
Total
revenues 2,511,638 2,335,110 7.6
COST OF SALES:
New
vehicle
retail
sales 1,385,218 1,295,854 6.9
Used
vehicle
retail
sales 531,584 491,299 8.2
Used
vehicle
wholesale
sales 93,730 82,804 13.2
Parts
and
service 131,958 123,879 6.5
------- -------
Total
cost of
sales 2,142,490 1,993,836 7.5
GROSS
PROFIT 369,148 341,274 8.2
SELLING,
GENERAL
AND
ADMINISTRATIVE
EXPENSES 271,970 251,159 8.3
DEPRECIATION
AND
AMORTIZATION
EXPENSE 10,753 8,884 21.0
ASSET
IMPAIRMENTS 1,721 609 182.6
OPERATING
INCOME 84,704 80,622 5.1
OTHER EXPENSE:
Floorplan
interest
expense (10,329) (10,873) (5.0)
Other
interest
expense,
net (12,567) (9,570) 31.3
Loss on
redemption
of
long-
term
debt (23,614) - 100.0
------- ---
INCOME
BEFORE
INCOME
TAXES 38,194 60,179 (36.5)
PROVISION
FOR
INCOME
TAXES (21,332) (22,791) (6.4)
NET
INCOME $16,862 $37,388 (54.9)
======= =======
Earnings
allocated
to
participating
securities $(619) $(1,592) (61.1)
Earnings
available
to
diluted
common
shares $16,243 $35,796 (54.6)
======= =======
DILUTED
EARNINGS
PER
SHARE $0.62 $1.43 (56.6)
Weighted
average
dilutive
common
shares
outstanding 26,242 24,980 5.1
Weighted
average
participating
securities 986 1,112 (11.3)
--- -----
Total
weighted
average
shares
outstanding 27,228 26,092 4.4
Six Months Ended June 30,
-------------------------
2014 2013 % Change
---- ---- --------
REVENUES:
New
vehicle
retail
sales $2,734,900 $2,486,454 10.0
Used
vehicle
retail
sales 1,127,147 1,006,203 12.0
Used
vehicle
wholesale
sales 184,144 157,867 16.6
Parts
and
service 552,524 498,460 10.8
Finance
and
insurance 173,786 149,958 15.9
Total
revenues 4,772,501 4,298,942 11.0
COST OF SALES:
New
vehicle
retail
sales 2,587,148 2,343,453 10.4
Used
vehicle
retail
sales 1,038,680 922,422 12.6
Used
vehicle
wholesale
sales 179,791 154,933 16.0
Parts
and
service 259,612 236,371 9.8
Total
cost of
sales 4,065,231 3,657,179 11.2
GROSS
PROFIT 707,270 641,763 10.2
SELLING,
GENERAL
AND
ADMINISTRATIVE
EXPENSES 529,528 484,592 9.3
DEPRECIATION
AND
AMORTIZATION
EXPENSE 20,678 17,297 19.5
ASSET
IMPAIRMENTS 1,721 609 182.6
OPERATING
INCOME 155,343 139,265 11.5
OTHER EXPENSE:
Floorplan
interest
expense (21,242) (20,237) 5.0
Other
interest
expense,
net (23,080) (18,812) 22.7
Other
expense,
net - (789) (100.0)
Loss on
redemption
of
long-
term
debt (23,614) - 100.0
INCOME
BEFORE
INCOME
TAXES 87,407 99,427 (12.1)
PROVISION
FOR
INCOME
TAXES (39,242) (39,921) (1.7)
NET
INCOME $48,165 $59,506 (19.1)
======= =======
Earnings
allocated
to
participating
securities $(1,773) $(2,522) (29.7)
Earnings
available
to
diluted
common
shares $46,392 $56,984 (18.6)
======= =======
DILUTED
EARNINGS
PER
SHARE $1.80 $2.32 (22.4)
Weighted
average
dilutive
common
shares
outstanding 25,837 24,544 5.3
Weighted
average
participating
securities 974 1,093 (10.9)
--- -----
Total
weighted
average
shares
outstanding 26,811 25,637 4.6
Group 1 Automotive, Inc.
Consolidated Balance Sheets
(Dollars in thousands)
June 30, December 31,
2014 2013 % Change
---- ---- --------
ASSETS: (Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $21,295 $20,215 5.3
Contracts in transit and vehicle
receivables, net 210,911 225,156 (6.3)
Accounts and notes receivable, net 142,115 135,058 5.2
Inventories, net 1,514,274 1,542,318 (1.8)
Deferred income taxes 16,595 21,150 (21.5)
Prepaid expenses and other current
assets 119,013 24,041 395.0
------- ------
Total current assets 2,024,203 1,967,938 2.9
--------- ---------
PROPERTY AND EQUIPMENT, net 837,821 796,356 5.2
GOODWILL AND INTANGIBLE FRANCHISE
RIGHTS 1,100,677 1,038,808 6.0
DEFERRED INCOME TAXES - - 100.0
OTHER ASSETS 14,189 16,376 (13.4)
Total assets $3,976,890 $3,819,478 4.1
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES:
Floorplan notes payable -credit
facility and other $1,122,333 $1,143,104 (1.8)
Offset account related to floorplan
notes payable -credit facility (64,614) (56,198) 15.0
Floorplan notes payable -
manufacturer affiliates 298,656 346,572 (13.8)
Current maturities of long-term debt
and short-term financing 30,516 36,225 (15.8)
Accounts payable 283,491 254,930 11.2
Accrued expenses 142,665 140,543 1.5
------- -------
Total current liabilities 1,813,047 1,865,176 (2.8)
--------- ---------
2.25% CONVERTIBLE SENIOR NOTES
(aggregate principal of $182,753 at
June 30, 2014 and December 31, 2013) 164,556 160,334 2.6
3.00% CONVERTIBLE SENIOR NOTES
(aggregate principal of $22,550 and
$115,000 at June 30, 2014 and
December 31, 2013, respectively) 16,907 84,305 (79.9)
5.00% SENIOR NOTES (aggregate
principal of $350,000 at June 30,
2014) 344,796 - 100.0
MORTGAGE FACILITY, net of current
maturities 62,860 64,271 (2.2)
ACQUISITION LINE 20,457 60,000 (65.9)
OTHER REAL ESTATE RELATED AND LONG-
TERM DEBT, net of current maturities 284,667 250,958 13.4
CAPITAL LEASE OBLIGATIONS RELATED TO
REAL ESTATE, net of current
maturities 44,332 43,821 1.2
DEFERRED INCOME TAXES 152,167 152,291 (0.1)
LIABILITIES FROM INTEREST RATE RISK
MANAGEMENT ACTIVITIES 27,271 26,078 4.6
OTHER LIABILITIES 55,900 47,975 16.5
COMMITMENTS AND CONTINGENCIES
TEMPORARY EQUITY -REDEEMABLE EQUITY
PORTION OF THE 2.25% and 3.00%
CONVERTIBLE SENIOR NOTES 22,860 29,094 (21.4)
STOCKHOLDERS' EQUITY:
Common stock 258 257 0.4
Additional paid-in capital 259,783 368,641 (29.5)
Retained earnings 816,056 776,101 5.1
Accumulated other comprehensive loss (39,928) (51,677) (22.7)
Treasury stock (69,099) (58,147) 18.8
------- -------
Total stockholders' equity 967,070 1,035,175 (6.6)
------- ---------
Total liabilities and stockholders'
equity $3,976,890 $3,819,478 4.1
========== ==========
Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2014 (%) 2013 (%) 2014 (%) 2013 (%)
-------- -------- -------- --------
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
Region Geographic Market
------ -----------------
East Massachusetts 5.9 5.8 5.7 6.2
Georgia 4.8 3.4 4.6 3.8
New Jersey 3.7 3.9 3.5 4.3
New Hampshire 2.2 2.2 2.2 2.3
New York 2.2 2.8 2.0 2.8
Louisiana 1.8 2.4 1.9 2.4
South Carolina 1.5 1.4 1.4 1.5
Mississippi 1.5 1.6 1.4 1.7
Florida 1.4 1.2 1.3 1.3
Alabama 0.9 0.8 0.8 0.8
Maryland 0.5 0.5 0.5 0.5
26.4 26.0 25.3 27.6
West Texas 34.1 31.2 34.1 32.6
California 9.9 10.7 9.7 11.9
Oklahoma 8.1 7.9 8.3 7.7
Kansas 2.5 2.6 2.5 2.5
Louisiana 0.7 - 0.7 -
55.3 52.4 55.3 54.7
International Brazil 9.8 12.9 10.2 9.1
United Kingdom 8.5 8.7 9.2 8.6
100.0 100.0 100.0 100.0
===== ===== ===== =====
NEW VEHICLE UNIT SALES BRAND MIX:
---------------------------------
Toyota/Scion/Lexus 27.2 26.5 26.6 27.0
BMW/MINI 11.7 10.8 11.5 10.5
Honda/Acura 11.4 12.6 11.5 12.5
Ford/Lincoln 10.8 11.4 11.4 11.5
Nissan/Infiniti 9.3 10.4 9.5 10.5
Volkswagen/Audi/Porsche 6.3 6.3 6.4 6.5
Hyundai/Kia 5.5 4.6 5.5 4.5
Chevrolet/GMC/Buick/Cadillac 5.4 4.4 5.4 4.8
Chrysler/Dodge/Jeep/RAM 4.4 3.9 4.5 4.1
Mercedes Benz/smart/Sprinter 4.4 4.2 4.2 4.4
Other 3.6 4.9 3.5 3.7
100.0 100.0 100.0 100.0
===== ===== ===== =====
Group 1 Automotive, Inc.
Additional Information - U.S.
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended June 30,
---------------------------
2014 2013 % Change
---- ---- --------
REVENUES:
New vehicle retail sales $1,191,321 $1,078,607 10.4
Used vehicle retail sales 474,075 448,574 5.7
Used vehicle wholesale
sales 68,649 56,725 21.0
------ ------
Total used 542,724 505,299 7.4
Parts and service 243,796 224,084 8.8
Finance and insurance 82,755 73,664 12.3
------ ------
Total $2,060,596 $1,881,654 9.5
GROSS MARGIN %:
New vehicle retail sales 5.2 5.4
Used vehicle retail sales 8.2 8.5
Used vehicle wholesale
sales 1.7 0.4
Total used 7.4 7.6
Parts and service 54.1 53.5
Finance and insurance 100.0 100.0
Total 15.4 15.4
GROSS PROFIT:
New vehicle retail sales $62,096 $58,325 6.5
Used vehicle retail sales 38,922 38,341 1.5
Used vehicle wholesale
sales 1,139 248 359.3
----- ---
Total used 40,061 38,589 3.8
Parts and service 131,865 119,898 10.0
Finance and insurance 82,755 73,664 12.3
------ ------
Total $316,777 $290,476 9.1
UNITS SOLD:
Retail new vehicles sold 34,685 32,589 6.4
Retail used vehicles sold 22,707 21,928 3.6
Wholesale used vehicles
sold 10,461 9,940 5.2
------ -----
Total used 33,168 31,868 4.1
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $34,347 $33,097 3.8
Used vehicle retail $20,878 $20,457 2.1
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $1,790 $1,790 0.0
Used vehicle retail sales 1,714 1,748 (1.9)
Used vehicle wholesale
sales 109 25 336.0
Total used 1,208 1,211 (0.2)
Finance and insurance
(per retail unit) $1,442 $1,351 6.7
OTHER: (1)
SG&A expenses $225,898 $207,977 8.6
SG&A as % revenues 11.0 11.1
SG&A as % gross profit 71.3 71.6
Operating margin % 4.0 4.0
Pretax margin % 3.0 3.0
INTEREST EXPENSE:
Floorplan interest $(8,361) $(8,645) (3.3)
Floorplan assistance 11,378 10,010 13.7
------ ------
Net floorplan income $3,017 $1,365 121.0
Other interest expense,
net $(11,799) $(9,301) 26.9
Six Months Ended June 30,
-------------------------
2014 2013 % Change
---- ---- --------
REVENUES:
New vehicle retail sales $2,203,873 $2,041,239 8.0
Used vehicle retail sales 924,562 866,913 6.6
Used vehicle wholesale
sales 133,120 114,394 16.4
------- -------
Total used 1,057,682 981,307 7.8
Parts and service 474,115 440,438 7.6
Finance and insurance 159,552 140,456 13.6
------- -------
Total $3,895,222 $3,603,440 8.1
GROSS MARGIN %:
New vehicle retail sales 5.1 5.4
Used vehicle retail sales 8.3 8.8
Used vehicle wholesale
sales 2.6 2.1
Total used 7.5 8.0
Parts and service 53.6 53.3
Finance and insurance 100.0 100.0
Total 15.6 15.6
GROSS PROFIT:
New vehicle retail sales $113,031 $109,907 2.8
Used vehicle retail sales 76,362 75,960 0.5
Used vehicle wholesale
sales 3,395 2,373 43.1
----- -----
Total used 79,757 78,333 1.8
Parts and service 254,168 234,721 8.3
Finance and insurance 159,552 140,457 13.6
------- -------
Total $606,508 $563,418 7.6
UNITS SOLD:
Retail new vehicles sold 64,632 61,367 5.3
Retail used vehicles sold 45,450 43,044 5.6
Wholesale used vehicles
sold 20,411 19,597 4.2
Total used 65,861 62,641 5.1
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $34,099 $33,263 2.5
Used vehicle retail $20,342 $20,140 1.0
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $1,749 $1,791 (2.3)
Used vehicle retail sales 1,680 1,765 (4.8)
Used vehicle wholesale
sales 166 121 37.2
--- ---
Total used 1,211 1,251 (3.2)
Finance and insurance
(per retail unit) $1,449 $1,345 7.7
OTHER: (1)
SG&A expenses $442,294 $412,068 7.3
SG&A as % revenues 11.4 11.4
SG&A as % gross profit 72.9 73.1
Operating margin % 3.8 3.8
Pretax margin % 2.8 2.8
INTEREST EXPENSE:
Floorplan interest $(16,944) $(16,941) -
Floorplan assistance 21,093 18,183 16.0
------ ------
Net floorplan income $4,148 $1,242 234.0
Other interest expense,
net $(22,062) $(18,341) 20.3
(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 - U.K.
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended June 30,
---------------------------
2014 2013 % Change
---- ---- --------
REVENUES:
New vehicle retail sales $131,803 $110,473 19.3
Used vehicle retail sales 73,260 58,429 25.4
Used vehicle wholesale
sales 21,549 17,958 20.0
------ ------
Total used 94,809 76,387 24.1
Parts and service 20,211 17,024 18.7
Finance and insurance 4,501 3,552 26.7
----- -----
Total $251,324 $207,436 21.2
GROSS MARGIN %:
New vehicle retail sales 6.9 6.5
Used vehicle retail sales 6.7 6.9
Used vehicle wholesale
sales (1.3) (3.4)
Total used 4.9 4.5
Parts and service 56.1 56.4
Finance and insurance 100.0 100.0
Total 11.7 11.4
GROSS PROFIT:
New vehicle retail sales $9,040 $7,161 26.2
Used vehicle retail sales 4,930 4,052 21.7
Used vehicle wholesale
sales (281) (614) (54.2)
---- ----
Total used 4,649 3,438 35.2
Parts and service 11,336 9,594 18.2
Finance and insurance 4,501 3,551 26.8
----- -----
Total $29,526 $23,744 24.4
UNITS SOLD:
Retail new vehicles sold 3,626 3,605 0.6
Retail used vehicles sold 2,720 2,524 7.8
Wholesale used vehicles
sold 2,195 2,251 (2.5)
----- -----
Total used 4,915 4,775 2.9
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $36,349 $30,644 18.6
Used vehicle retail $26,934 $23,149 16.3
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $2,493 $1,986 25.5
Used vehicle retail sales 1,813 1,605 13.0
Used vehicle wholesale
sales (128) (273) (53.1)
Total used 946 720 31.4
Finance and insurance
(per retail unit) $709 $579 22.5
OTHER:
SG&A expenses $22,316 $18,570 20.2
SG&A as % revenues 8.9 9.0
SG&A as % gross profit 75.6 78.2
Operating margin % 2.5 2.2
Pretax margin % 2.2 1.8
INTEREST EXPENSE:
Floorplan interest $(336) $(421) (20.2)
Floorplan assistance 156 - 100.0
--- ---
Net floorplan expense $(180) $(421) (57.2)
Other interest expense,
net $(509) $(293) 73.7
Six Months Ended June 30,
-------------------------
2014 2013 % Change
---- ---- --------
REVENUES:
New vehicle retail sales $262,404 $205,298 27.8
Used vehicle retail sales 144,737 103,394 40.0
Used vehicle wholesale
sales 41,194 31,722 29.9
------ ------
Total used 185,931 135,116 37.6
Parts and service 41,571 31,795 30.7
Finance and insurance 9,119 6,305 44.6
----- -----
Total $499,025 $378,514 31.8
GROSS MARGIN %:
New vehicle retail sales 6.7 6.7
Used vehicle retail sales 5.9 6.1
Used vehicle wholesale
sales 0.4 (1.7)
Total used 4.7 4.2
Parts and service 55.1 53.7
Finance and insurance 100.0 100.0
Total 11.7 11.3
GROSS PROFIT:
New vehicle retail sales $17,538 $13,793 27.2
Used vehicle retail sales 8,519 6,270 35.9
Used vehicle wholesale
sales 170 (530) 132.1
--- ----
Total used 8,689 5,740 51.4
Parts and service 22,909 17,078 34.1
Finance and insurance 9,119 6,304 44.7
----- -----
Total $58,255 $42,915 35.7
UNITS SOLD:
Retail new vehicles sold 7,371 6,432 14.6
Retail used vehicles sold 5,459 4,252 28.4
Wholesale used vehicles
sold 4,356 3,694 17.9
Total used 9,815 7,946 23.5
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $35,600 $31,918 11.5
Used vehicle retail $26,513 $24,317 9.0
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $2,379 $2,144 11.0
Used vehicle retail sales 1,561 1,475 5.8
Used vehicle wholesale
sales 39 (143) 127.3
Total used 885 722 22.6
Finance and insurance
(per retail unit) $711 $590 20.5
OTHER:(1)
SG&A expenses $44,788 $34,464 30.0
SG&A as % revenues 9.0 9.1
SG&A as % gross profit 76.9 80.3
Operating margin % 2.4 1.9
Pretax margin % 2.0 1.6
INTEREST EXPENSE:
Floorplan interest $(769) $(727) 5.8
Floorplan assistance 258 - 100.0
--- ---
Net floorplan expense $(511) $(727) (29.7)
Other interest expense,
net $(960) $(507) 89.3
(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 June 30,
---------------------------
2014 2013 % Change
---- ---- --------
REVENUES:
New vehicle retail
sales $142,940 $187,139 (23.6)
Used vehicle retail
sales 29,915 27,802 7.6
Used vehicle wholesale
sales 4,773 8,633 (44.7)
----- -----
Total used 34,688 36,435 (4.8)
Parts and service 19,200 19,841 (3.2)
Finance and insurance 2,890 2,605 10.9
----- -----
Total $199,718 $246,020 (18.8)
GROSS MARGIN %:
New vehicle retail
sales 6.8 8.0
Used vehicle retail
sales 6.1 4.0
Used vehicle wholesale
sales 8.0 10.2
Total used 6.3 5.5
Parts and service 41.9 38.2
Finance and insurance 100.0 100.0
Total 11.4 11.0
GROSS PROFIT:
New vehicle retail
sales $9,710 $14,879 (34.7)
Used vehicle retail
sales 1,814 1,113 63.0
Used vehicle wholesale
sales 383 878 (56.4)
--- ---
Total used 2,197 1,991 10.3
Parts and service 8,048 7,579 6.2
Finance and insurance 2,890 2,605 10.9
----- -----
Total $22,845 $27,054 (15.6)
UNITS SOLD:
Retail new vehicles
sold 4,145 5,337 (22.3)
Retail used vehicles
sold 1,294 1,182 9.5
Wholesale used vehicles
sold 574 881 (34.8)
--- ---
Total used 1,868 2,063 (9.5)
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $34,485 $35,064 (1.7)
Used vehicle retail $23,118 $23,521 (1.7)
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $2,343 $2,788 (16.0)
Used vehicle retail
sales 1,402 942 48.8
Used vehicle wholesale
sales 667 997 (33.1)
Total used 1,176 965 21.9
Finance and insurance
(per retail unit) $531 $400 32.8
OTHER: (1)
SG&A expenses $21,732 $21,769 (0.2)
SG&A as % revenues 10.9 8.8
SG&A as % gross profit 95.1 80.5
Operating margin % 0.3 2.0
Pretax margin % (0.7) 1.3
INTEREST EXPENSE:
Floorplan interest $(1,632) $(1,807) (9.7)
Floorplan assistance - - -
--- ---
Net floorplan expense $(1,632) $(1,807) (9.7)
Other interest expense,
net $(259) $24 (1,179.2)
Six Months Ended June 30,
-------------------------
2014 2013 (2) % Change
---- ------- --------
REVENUES:
New vehicle retail
sales $268,623 $239,917 12.0
Used vehicle retail
sales 57,848 35,897 61.1
Used vehicle wholesale
sales 9,830 11,750 (16.3)
----- ------
Total used 67,678 47,647 42.0
Parts and service 36,838 26,227 40.5
Finance and insurance 5,115 3,197 60.0
----- -----
Total $378,254 $316,988 19.3
GROSS MARGIN %:
New vehicle retail
sales 6.4 8.0
Used vehicle retail
sales 6.2 4.3
Used vehicle wholesale
sales 8.0 9.3
Total used 6.5 5.5
Parts and service 43.0 39.2
Finance and insurance 100.0 100.0
Total 11.2 11.2
GROSS PROFIT: -
New vehicle retail
sales $17,183 $19,301 (11.0)
Used vehicle retail
sales 3,586 1,552 131.1
Used vehicle wholesale
sales 788 1,090 (27.7)
--- -----
Total used 4,374 2,642 65.6
Parts and service 15,835 10,290 53.9
Finance and insurance 5,115 3,197 60.0
----- -----
Total $42,507 $35,430 20.0
UNITS SOLD:
Retail new vehicles
sold 8,202 6,828 20.1
Retail used vehicles
sold 2,689 1,576 70.6
Wholesale used vehicles
sold 1,247 1,116 11.7
----- -----
Total used 3,936 2,692 46.2
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $32,751 $35,137 (6.8)
Used vehicle retail $21,513 $22,777 (5.6)
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $2,095 $2,827 (25.9)
Used vehicle retail
sales 1,334 985 35.4
Used vehicle wholesale
sales 632 977 (35.3)
Total used 1,111 981 13.3
Finance and insurance
(per retail unit) $470 $380 23.7
OTHER: (1)
SG&A expenses $40,422 $28,471 42.0
SG&A as % revenues 10.7 9.0
SG&A as % gross profit 95.1 80.4
Operating margin % 0.3 2.0
Pretax margin % (0.7) 1.2
INTEREST EXPENSE:
Floorplan interest $(3,528) $(2,569) 37.3
Floorplan assistance - - -
--- ---
Net floorplan expense $(3,528) $(2,569) 37.3
Other interest income,
net $(58) $(36) 61.1
(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
June 30, 2013.
Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended June 30,
---------------------------
2014 2013 % Change
---- ---- --------
REVENUES:
New vehicle retail
sales $1,466,064 $1,376,219 6.5
Used vehicle retail
sales 577,250 534,804 7.9
Used vehicle wholesale
sales 94,971 83,316 14.0
------ ------
Total used 672,221 618,120 8.8
Parts and service 283,207 260,950 8.5
Finance and insurance 90,146 79,821 12.9
------ ------
Total $2,511,638 $2,335,110 7.6
GROSS MARGIN %:
New vehicle retail
sales 5.5 5.8
Used vehicle retail
sales 7.9 8.1
Used vehicle wholesale
sales 1.3 0.6
Total used 7.0 7.1
Parts and service 53.4 52.5
Finance and insurance 100.0 100.0
Total 14.7 14.6
GROSS PROFIT:
New vehicle retail
sales $80,846 $80,365 0.6
Used vehicle retail
sales 45,666 43,505 5.0
Used vehicle wholesale
sales 1,241 512 142.4
----- ---
Total used 46,907 44,017 6.6
Parts and service 151,249 137,071 10.3
Finance and insurance 90,146 79,821 12.9
------ ------
Total $369,148 $341,274 8.2
UNITS SOLD:
Retail new vehicles
sold 42,456 41,531 2.2
Retail used vehicles
sold 26,721 25,634 4.2
Wholesale used vehicles
sold 13,230 13,072 1.2
------ ------
Total used 39,951 38,706 3.2
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $34,531 $33,137 4.2
Used vehicle retail $21,603 $20,863 3.5
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $1,904 $1,935 (1.6)
Used vehicle retail
sales 1,709 1,697 0.7
Used vehicle wholesale
sales 94 39 141.0
Total used 1,174 1,137 3.3
Finance and insurance
(per retail unit) $1,303 $1,188 9.7
OTHER: (1)
SG&A expenses $269,946 $248,316 8.7
SG&A as % revenues 10.7 10.6
SG&A as % gross profit 73.1 72.8
Operating margin % 3.5 3.6
Pretax margin % 2.6 2.7
INTEREST EXPENSE:
Floorplan interest $(10,329) $(10,873) (5.0)
Floorplan assistance 11,534 10,010 15.2
------ ------
Net floorplan (expense)
income $1,205 $(863) 239.6
Other interest expense,
net $(12,567) $(9,570) 31.3
Six Months Ended June 30,
-------------------------
2014 2013 % Change
---- ---- --------
REVENUES:
New vehicle retail
sales $2,734,900 $2,486,454 10.0
Used vehicle retail
sales 1,127,147 1,006,203 12.0
Used vehicle wholesale
sales 184,144 157,867 16.6
------- -------
Total used 1,311,291 1,164,070 12.6
Parts and service 552,524 498,460 10.8
Finance and insurance 173,786 149,958 15.9
------- -------
Total $4,772,501 $4,298,942 11.0
GROSS MARGIN %:
New vehicle retail
sales 5.4 5.8
Used vehicle retail
sales 7.8 8.3
Used vehicle wholesale
sales 2.4 1.9
Total used 7.1 7.4
Parts and service 53.0 52.6
Finance and insurance 100.0 100.0
Total 14.8 14.9
GROSS PROFIT:
New vehicle retail
sales $147,752 $143,000 3.3
Used vehicle retail
sales 88,467 83,781 5.6
Used vehicle wholesale
sales 4,353 2,934 48.4
----- -----
Total used 92,820 86,715 7.0
Parts and service 292,912 262,089 11.8
Finance and insurance 173,786 149,959 15.9
------- -------
Total $707,270 $641,763 10.2
UNITS SOLD:
Retail new vehicles
sold 80,205 74,627 7.5
Retail used vehicles
sold 53,598 48,872 9.7
Wholesale used vehicles
sold 26,014 24,407 6.6
------ ------
Total used 79,612 73,279 8.6
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $34,099 $33,318 2.3
Used vehicle retail $21,030 $20,589 2.1
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $1,842 $1,916 (3.9)
Used vehicle retail
sales 1,651 1,714 (3.7)
Used vehicle wholesale
sales 167 120 39.2
Total used 1,166 1,183 (1.4)
Finance and insurance
(per retail unit) $1,299 $1,214 7.0
OTHER: (1)
SG&A expenses $527,504 $475,003 11.1
SG&A as % revenues 11.1 11.0
SG&A as % gross profit 74.6 74.0
Operating margin % 3.3 3.5
Pretax margin % 2.4 2.6
INTEREST EXPENSE:
Floorplan interest $(21,242) $(20,237) 5.0
Floorplan assistance 21,351 18,183 17.4
------ ------
Net floorplan (expense)
income $109 $(2,054) 105.3
Other interest expense,
net $(23,080) $(18,812) 22.7
(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 June 30,
---------------------------
2014 2013 % Change
---- ---- --------
REVENUES:
New vehicle retail
sales $1,106,285 $1,041,504 6.2
Used vehicle retail
sales 440,854 435,111 1.3
Used vehicle wholesale
sales 64,025 53,763 19.1
------ ------
Total used 504,879 488,874 3.3
Parts and service 227,172 215,467 5.4
Finance and insurance 78,181 71,744 9.0
------ ------
Total $1,916,517 $1,817,589 5.4
GROSS MARGIN %:
New vehicle retail
sales 5.2 5.5
Used vehicle retail
sales 8.1 8.6
Used vehicle wholesale
sales 1.9 0.9
Total used 7.3 7.7
Parts and service 54.0 53.6
Finance and insurance 100.0 100.0
Total 15.4 15.5
GROSS PROFIT:
New vehicle retail
sales $57,615 $57,091 0.9
Used vehicle retail
sales 35,809 37,299 (4.0)
Used vehicle wholesale
sales 1,192 462 158.0
----- ---
Total used 37,001 37,761 (2.0)
Parts and service 122,599 115,414 6.2
Finance and insurance 78,181 71,744 9.0
------ ------
Total $295,396 $282,010 4.7
UNITS SOLD:
Retail new vehicles
sold 32,231 31,297 3.0
Retail used vehicles
sold 20,955 21,215 (1.2)
Wholesale used vehicles
sold 9,883 9,453 4.5
----- -----
Total used 30,838 30,668 0.6
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $34,324 $33,278 3.1
Used vehicle retail $21,038 $20,510 2.6
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $1,788 $1,824 (2.0)
Used vehicle retail
sales 1,709 1,758 (2.8)
Used vehicle wholesale
sales 121 49 146.9
Total used 1,200 1,231 (2.5)
Finance and insurance
(per retail unit) $1,470 $1,366 7.6
OTHER:(2)
SG&A expenses $208,805 $198,731 5.1
SG&A as % revenues 10.9 10.9
SG&A as % gross profit 70.7 70.5
Operating margin % 4.1 4.2
Six Months Ended June 30,
-------------------------
2014 2013 % Change
---- ---- --------
REVENUES:
New vehicle retail
sales $2,058,721 $1,963,058 4.9
Used vehicle retail
sales 865,179 838,917 3.1
Used vehicle wholesale
sales 124,920 108,883 14.7
------- -------
Total used 990,099 947,800 4.5
Parts and service 444,027 421,248 5.4
Finance and insurance 151,873 136,248 11.5
------- -------
Total $3,644,720 $3,468,354 5.1
GROSS MARGIN %:
New vehicle retail
sales 5.1 5.5
Used vehicle retail
sales 8.1 8.8
Used vehicle wholesale
sales 2.8 2.4
Total used 7.5 8.0
Parts and service 53.5 53.3
Finance and insurance 100.0 100.0
Total 15.6 15.7
GROSS PROFIT:
New vehicle retail
sales $105,410 $107,155 (1.6)
Used vehicle retail
sales 70,471 73,648 (4.3)
Used vehicle wholesale
sales 3,507 2,576 36.1
----- -----
Total used 73,978 76,224 (2.9)
Parts and service 237,416 224,556 5.7
Finance and insurance 151,873 136,248 11.5
------- -------
Total $568,677 $544,183 4.5
UNITS SOLD:
Retail new vehicles
sold 60,347 58,566 3.0
Retail used vehicles
sold 42,156 41,549 1.5
Wholesale used vehicles
sold 19,403 18,638 4.1
------ ------
Total used 61,559 60,187 2.3
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $34,115 $33,519 1.8
Used vehicle retail $20,523 $20,191 1.6
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $1,747 $1,830 (4.5)
Used vehicle retail
sales 1,672 1,773 (5.7)
Used vehicle wholesale
sales 181 138 31.2
Total used 1,202 1,266 (5.1)
Finance and insurance
(per retail unit) $1,482 $1,361 8.9
OTHER: (2)
SG&A expenses $411,766 $392,941 4.8
SG&A as % revenues 11.3 11.3
SG&A as % gross profit 72.4 72.2
Operating margin % 3.8 3.9
(1) Same store
amounts
include the
results for
the identical
months in each
period
presented in
the
comparison,
commencing
with the first
full month we
owned the
dealership
and, in the
case of
dispositions,
ending with
the last full
month we owned
it. Same store
results also
include the
activities of
our corporate
office.
(2) 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 June 30,
---------------------------
2014 2013 % Change
---- ---- --------
REVENUES:
New vehicle retail
sales $131,803 $110,473 19.3
Used vehicle retail
sales 73,260 58,429 25.4
Used vehicle wholesale
sales 21,549 17,958 20.0
------ ------
Total used 94,809 76,387 24.1
Parts and service 20,206 17,024 18.7
Finance and insurance 4,501 3,544 27.0
----- -----
Total $251,319 $207,428 21.2
GROSS MARGIN %:
New vehicle retail
sales 6.9 6.5
Used vehicle retail
sales 6.7 6.9
Used vehicle wholesale
sales (1.3) (3.4)
Total used 4.9 4.5
Parts and service 56.1 56.3
Finance and insurance 100.0 100.0
Total 11.7 11.4
GROSS PROFIT:
New vehicle retail
sales $9,040 $7,148 26.5
Used vehicle retail
sales 4,930 4,048 21.8
Used vehicle wholesale
sales (281) (614) (54.2)
---- ----
Total used 4,649 3,434 35.4
Parts and service 11,331 9,585 18.2
Finance and insurance 4,501 3,544 27.0
----- -----
Total $29,521 $23,711 24.5
UNITS SOLD:
Retail new vehicles
sold 3,626 3,605 0.6
Retail used vehicles
sold 2,720 2,524 7.8
Wholesale used vehicles
sold 2,195 2,251 (2.5)
----- -----
Total used 4,915 4,775 2.9
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $36,349 $30,644 18.6
Used vehicle retail $26,934 $23,149 16.3
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $2,493 $1,983 25.7
Used vehicle retail
sales 1,813 1,604 13.0
Used vehicle wholesale
sales (128) (273) (53.1)
Total used 946 719 31.6
Finance and insurance
(per retail unit) $709 $578 22.7
OTHER:(2)
SG&A expenses $22,316 $18,563 20.2
SG&A as % revenues 8.9 8.9
SG&A as % gross profit 75.6 78.3
Operating margin % 2.5 2.2
Six Months Ended June 30,
-------------------------
2014 2013 % Change
---- ---- --------
REVENUES:
New vehicle retail
sales $254,063 $205,298 23.8
Used vehicle retail
sales 132,804 103,394 28.4
Used vehicle wholesale
sales 39,297 31,722 23.9
------ ------
Total used 172,101 135,116 27.4
Parts and service 38,588 31,795 21.4
Finance and insurance 8,484 6,297 34.7
----- -----
Total $473,236 $378,506 25.0
GROSS MARGIN %:
New vehicle retail
sales 6.8 6.7
Used vehicle retail
sales 5.9 6.1
Used vehicle wholesale
sales 0.3 (1.7)
Total used 4.6 4.2
Parts and service 55.3 53.7
Finance and insurance 100.0 100.0
Total 11.6 11.3
GROSS PROFIT:
New vehicle retail
sales $17,210 $13,781 24.9
Used vehicle retail
sales 7,830 6,265 25.0
Used vehicle wholesale
sales 131 (531) 124.7
--- ----
Total used 7,961 5,734 38.8
Parts and service 21,351 17,069 25.1
Finance and insurance 8,484 6,297 34.7
----- -----
Total $55,006 $42,881 28.3
UNITS SOLD:
Retail new vehicles
sold 6,955 6,432 8.1
Retail used vehicles
sold 4,773 4,252 12.3
Wholesale used vehicles
sold 3,919 3,694 6.1
----- -----
Total used 8,692 7,946 9.4
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $36,530 $31,918 14.4
Used vehicle retail $27,824 $24,317 14.4
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $2,474 $2,143 15.4
Used vehicle retail
sales 1,640 1,473 11.3
Used vehicle wholesale
sales 33 (144) 122.9
Total used 916 722 26.9
Finance and insurance
(per retail unit) $723 $589 22.8
OTHER: (2)
SG&A expenses $41,977 $34,457 21.8
SG&A as % revenues 8.9 9.1
SG&A as % gross profit 76.3 80.4
Operating margin % 2.4 1.9
(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) 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 June 30,
---------------------------
2014 2013 % Change
---- ---- --------
REVENUES:
New vehicle retail
sales $141,658 $187,139 (24.3)
Used vehicle retail
sales 29,373 27,802 5.7
Used vehicle wholesale
sales 4,773 8,633 (44.7)
----- -----
Total used 34,146 36,435 (6.3)
Parts and service 19,027 19,841 (4.1)
Finance and insurance 2,891 2,605 11.0
----- -----
Total $197,722 $246,020 (19.6)
GROSS MARGIN %:
New vehicle retail
sales 6.6 8.0
Used vehicle retail
sales 6.0 4.0
Used vehicle wholesale
sales 8.0 10.2
Total used 6.3 5.5
Parts and service 41.9 38.2
Finance and insurance 100.0 100.0
Total 11.3 11.0
GROSS PROFIT:
New vehicle retail
sales $9,316 $14,879 (37.4)
Used vehicle retail
sales 1,758 1,113 58.0
Used vehicle wholesale
sales 383 878 (56.4)
--- ---
Total used 2,141 1,991 7.5
Parts and service 7,974 7,579 5.2
Finance and insurance 2,891 2,605 11.0
----- -----
Total $22,322 $27,054 (17.5)
UNITS SOLD:
Retail new vehicles
sold 4,087 5,337 (23.4)
Retail used vehicles
sold 1,271 1,182 7.5
Wholesale used vehicles
sold 561 881 (36.3)
--- ---
Total used 1,832 2,063 (11.2)
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $34,661 $35,064 (1.2)
Used vehicle retail $23,110 $23,521 (1.7)
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $2,279 $2,788 (18.3)
Used vehicle retail
sales 1,383 942 46.8
Used vehicle wholesale
sales 683 997 (31.5)
Total used 1,169 965 21.1
Finance and insurance
(per retail unit) $540 $400 35.0
OTHER:(2)
SG&A expenses $21,491 $21,769 (1.3)
SG&A as % revenues 10.9 8.8
SG&A as % gross profit 96.3 80.5
Operating margin % 0.2 2.0
Six Months Ended June 30,
-------------------------
2014 2013 (3) % Change
---- ------- --------
REVENUES:
New vehicle retail
sales $181,207 $239,917 (24.5)
Used vehicle retail
sales 36,366 35,897 1.3
Used vehicle wholesale
sales 6,040 11,750 (48.6)
----- ------
Total used 42,406 47,647 (11.0)
Parts and service 25,062 26,227 (4.4)
Finance and insurance 3,481 3,197 8.9
----- -----
Total $252,156 $316,988 (20.5)
GROSS MARGIN %:
New vehicle retail
sales 6.5 8.0
Used vehicle retail
sales 6.0 4.3
Used vehicle wholesale
sales 8.1 9.3
Total used 6.3 5.5
Parts and service 42.0 39.2
Finance and insurance 100.0 100.0
Total 11.3 11.2
GROSS PROFIT:
New vehicle retail
sales $11,715 $19,301 (39.3)
Used vehicle retail
sales 2,195 1,552 41.4
Used vehicle wholesale
sales 492 1,090 (54.9)
--- -----
Total used 2,687 2,642 1.7
Parts and service 10,523 10,290 2.3
Finance and insurance 3,481 3,197 8.9
----- -----
Total $28,406 $35,430 (19.8)
UNITS SOLD:
Retail new vehicles
sold 5,330 6,828 (21.9)
Retail used vehicles
sold 1,605 1,576 1.8
Wholesale used vehicles
sold 721 1,116 (35.4)
--- -----
Total used 2,326 2,692 (13.6)
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $33,998 $35,137 (3.2)
Used vehicle retail $22,658 $22,777 (0.5)
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $2,198 $2,827 (22.2)
Used vehicle retail
sales 1,368 985 38.9
Used vehicle wholesale
sales 682 977 (30.2)
Total used 1,155 981 17.7
Finance and insurance
(per retail unit) $502 $380 32.1
OTHER: (2)
SG&A expenses $27,206 $28,471 (4.4)
SG&A as % revenues 10.8 9.0
SG&A as % gross profit 95.8 80.4
Operating margin % 0.2 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.
(3) Results are for
the period
from the date
of acquisition
(February 28,
2013) through
June 30, 2013.
Group 1 Automotive, Inc.
Additional Information - Same Store Consolidated (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended June 30,
---------------------------
2014 2013 % Change
---- ---- --------
REVENUES:
New vehicle retail
sales $1,379,746 $1,339,116 3.0
Used vehicle retail
sales 543,487 521,342 4.2
Used vehicle wholesale
sales 90,347 80,354 12.4
------ ------
Total used 633,834 601,696 5.3
Parts and service 266,405 252,332 5.6
Finance and insurance 85,573 77,893 9.9
------ ------
Total $2,365,558 $2,271,037 4.2
GROSS MARGIN %:
New vehicle retail
sales 5.5 5.9
Used vehicle retail
sales 7.8 8.1
Used vehicle wholesale
sales 1.4 0.9
Total used 6.9 7.2
Parts and service 53.3 52.5
Finance and insurance 100.0 100.0
Total 14.7 14.7
GROSS PROFIT:
New vehicle retail
sales $75,971 $79,118 (4.0)
Used vehicle retail
sales 42,497 42,460 0.1
Used vehicle wholesale
sales 1,294 726 78.2
----- ---
Total used 43,791 43,186 1.4
Parts and service 141,904 132,578 7.0
Finance and insurance 85,573 77,893 9.9
------ ------
Total $347,239 $332,775 4.3
UNITS SOLD:
Retail new vehicles
sold 39,944 40,239 (0.7)
Retail used vehicles
sold 24,946 24,921 0.1
Wholesale used vehicles
sold 12,639 12,585 0.4
------ ------
Total used 37,585 37,506 0.2
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $34,542 $33,279 3.8
Used vehicle retail $21,787 $20,920 4.1
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $1,902 $1,966 (3.3)
Used vehicle retail
sales 1,704 1,704 -
Used vehicle wholesale
sales 102 58 75.9
Total used 1,165 1,151 1.2
Finance and insurance
(per retail unit) $1,319 $1,195 10.4
OTHER:(2)
SG&A expenses $252,612 $239,063 5.7
SG&A as % revenues 10.7 10.5
SG&A as % gross profit 72.7 71.8
Operating margin % 3.6 3.7
Six Months Ended June 30,
-------------------------
2014 2013 % Change
---- ---- --------
REVENUES:
New vehicle retail
sales $2,493,991 $2,408,273 3.6
Used vehicle retail
sales 1,034,349 978,208 5.7
Used vehicle wholesale
sales 170,257 152,355 11.8
------- -------
Total used 1,204,606 1,130,563 6.5
Parts and service 507,677 479,270 5.9
Finance and insurance 163,838 145,742 12.4
------- -------
Total $4,370,112 $4,163,848 5.0
GROSS MARGIN %:
New vehicle retail
sales 5.4 5.8
Used vehicle retail
sales 7.8 8.3
Used vehicle wholesale
sales 2.4 2.1
Total used 7.0 7.5
Parts and service 53.0 52.6
Finance and insurance 100.0 100.0
Total 14.9 14.9
GROSS PROFIT:
New vehicle retail
sales $134,335 $140,237 (4.2)
Used vehicle retail
sales 80,496 81,465 (1.2)
Used vehicle wholesale
sales 4,130 3,135 31.7
----- -----
Total used 84,626 84,600 0.0
Parts and service 269,290 251,915 6.9
Finance and insurance 163,838 145,742 12.4
------- -------
Total $652,089 $622,494 4.8
UNITS SOLD:
Retail new vehicles
sold 72,632 71,826 1.1
Retail used vehicles
sold 48,534 47,377 2.4
Wholesale used vehicles
sold 24,043 23,448 2.5
------ ------
Total used 72,577 70,825 2.5
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $34,337 $33,529 2.4
Used vehicle retail $21,312 $20,647 3.2
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $1,850 $1,952 (5.2)
Used vehicle retail
sales 1,659 1,720 (3.5)
Used vehicle wholesale
sales 172 134 28.4
Total used 1,166 1,194 (2.3)
Finance and insurance
(per retail unit) $1,352 $1,223 10.5
OTHER: (2)
SG&A expenses $480,949 $455,869 5.5
SG&A as % revenues 11.0 10.9
SG&A as % gross profit 73.8 73.2
Operating margin % 3.5 3.6
(1) Same store
amounts
include the
results for
the identical
months in each
period
presented in
the
comparison,
commencing
with the first
full month we
owned the
dealership
and, in the
case of
dispositions,
ending with
the last full
month we owned
it. Same store
results also
include the
activities of
our corporate
office.
(2) 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 June 30,
---------------------------
2014 2013 % Change
---- ---- --------
SG&A RECONCILIATION:
As reported $227,506 $210,820 7.9
Pre-tax adjustments:
Catastrophic events (1,676) (11,092)
Net gain on real estate and dealership
transactions 510 8,249
Legal settlements (442) -
Adjusted SG&A (1) $225,898 $207,977 8.6
SG&A AS % REVENUES:
Unadjusted 11.0 11.2
Adjusted (1) 11.0 11.1
SG&A AS % GROSS PROFIT:
Unadjusted 71.8 72.6
Adjusted (1) 71.3 71.6
OPERATING MARGIN %
Unadjusted 3.8 3.8
Adjusted(1), (2) 4.0 4.0
PRETAX MARGIN %:
Unadjusted 1.7 2.8
Adjusted (1), (3) 3.0 3.0
SAME STORE SG&A RECONCILIATION:
As reported $210,923 $210,023 0.4
Pre-tax adjustments:
Catastrophic events (1,676) (11,092)
Net gain on real estate and dealership
transactions - (200)
Legal settlements (442) -
Adjusted Same Store SG&A (1) $208,805 $198,731 5.1
SAME STORE SG&A AS % REVENUES:
Unadjusted 11.0 11.6
Adjusted (1) 10.9 10.9
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 71.4 74.5
Adjusted (1) 70.7 70.5
SAME STORE OPERATING MARGIN %:
Unadjusted 3.9 3.5
Adjusted (1), (4) 4.1 4.2
Six Months Ended June 30,
-------------------------
2014 2013 % Change
---- ---- --------
SG&A RECONCILIATION:
As reported $443,902 $420,304 5.6
Pre-tax adjustments:
Acquisition costs - (5,159)
Catastrophic events (1,676) (11,900)
Net gain on real estate and dealership
transactions 510 8,823
Legal settlements (442) -
Adjusted SG&A(1) $442,294 $412,068 7.3
SG&A AS % REVENUES:
Unadjusted 11.4 11.7
Adjusted (1) 11.4 11.4
SG&A AS % OF GROSS PROFIT:
Unadjusted 73.2 74.6
Adjusted (1) 72.9 73.1
OPERATING MARGIN %:
Unadjusted 3.7 3.5
Adjusted (1), (2) 3.8 3.8
PRETAX MARGIN %:
Unadjusted 2.1 2.5
Adjusted (1), (3) 2.8 2.8
SAME STORE SG&A RECONCILIATION:
As reported $413,884 $410,200 0.9
Pre-tax adjustments:
Catastrophic events (1,676) (11,900)
Acquisition costs - (5,159)
Net gain on real estate and dealership
transactions - (200)
Legal settlements (442) -
Adjusted Same Store SG&A (1) $411,766 $392,941 4.8
SAME STORE SG&A AS % REVENUES:
Unadjusted 11.4 11.8
Adjusted (1) 11.3 11.3
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 72.8 75.4
Adjusted (1) 72.4 72.2
SAME STORE OPERATING MARGIN %:
Unadjusted 3.7 3.4
Adjusted (1), (4) 3.8 3.9
(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
$1,721 for
the three and
six months
ended June
30, 2014, and
$609 for the
three and six
months ended
June 30,
2013.
(3) Excludes the
impact of
SG&A
reconciling
items above,
as well as
loss on
redemption of
long-term
debt of
$23,614 for
the three and
six months
ended June
30, 2014,
non-cash
asset
impairment
charges of
$1,721 for
the three and
six months
ended June
30, 2014, and
$609 for the
three and six
months ended
June 30,
2013.
(4) Excludes the
impact of
Same Store
SG&A
reconciling
items above,
as well as
non-cash
asset
impairment
charges of
$1,721 for
the three and
six months
ended June
30, 2014, and
$609 and $607
for the three
and six
months ended
June 30,
2013,
respectively.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - U.K.
(Unaudited)
(Dollars in thousands, except per share amounts)
Six Months Ended June 30,
-------------------------
2014 2013 % Change
---- ---- --------
SG&A RECONCILIATION:
As reported $44,788 $34,606 29.4
Pre-tax adjustments:
Acquisition costs - (142)
Adjusted SG&A (1) $44,788 $34,464 30.0
SG&A AS % REVENUES:
Unadjusted 9.0 9.1
Adjusted (1) 9.0 9.1
SG&A AS % OF GROSS PROFIT:
Unadjusted 76.9 80.6
Adjusted (1) 76.9 80.3
OPERATING MARGIN %:
Unadjusted 2.4 1.9
Adjusted (1), (2) 2.4 1.9
PRETAX MARGIN %:
Unadjusted 2.0 1.5
Adjusted (1), (2) 2.0 1.6
SAME STORE SG&A RECONCILIATION:
As reported $41,977 $34,599 21.3
Pre-tax adjustments:
Acquisition costs - (142)
Adjusted Same Store SG&A (1) $41,977 $34,457 21.8
SAME STORE SG&A AS % REVENUES:
Unadjusted 8.9 9.1
Adjusted (1) 8.9 9.1
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 76.3 80.7
Adjusted (1) 76.3 80.4
SAME STORE OPERATING MARGIN %:
Unadjusted 2.4 1.9
Adjusted (1), (2) 2.4 1.9
(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)
Three Months Ended June 30,
---------------------------
2014 2013 % Change
---- ---- --------
SG&A RECONCILIATION:
As reported $22,148 $21,769 1.7
Pre-tax adjustments:
Foreign transaction tax (416) -
Adjusted SG&A(1) $21,732 $21,769 (0.2)
SG&A AS % REVENUES:
Unadjusted 11.1 8.8
Adjusted (1) 10.9 8.8
SG&A AS % GROSS PROFIT:
Unadjusted 96.9 80.5
Adjusted (1) 95.1 80.5
OPERATING MARGIN %
Unadjusted 0.1 2.0
Adjusted (1), (2) 0.3 2.0
PRETAX MARGIN %:
Unadjusted (0.9) 1.3
Adjusted (1), (3) (0.7) 1.3
SAME STORE SG&A RECONCILIATION:
As reported $21,907 $21,769 0.6
Pre-tax adjustments:
Foreign transaction tax (416) -
Adjusted Same Store SG&A (1) $21,491 $21,769 (1.3)
SAME STORE SG&A AS % REVENUES:
Unadjusted 11.1 8.8
Adjusted (1) 10.9 8.8
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 98.1 80.5
Adjusted (1) 96.3 80.5
SAME STORE OPERATING MARGIN %:
Unadjusted (0.1) 2.0
Adjusted (1), (2) 0.2 2.0
Six Months Ended June 30,
-------------------------
2014 2013 (4) % Change
---- ------- --------
SG&A RECONCILIATION:
As reported $40,838 $29,682 37.6
Pre-tax adjustments:
Acquisition costs - (1,211)
Foreign transaction tax (416) -
Adjusted SG&A(1) $40,422 $28,471 42.0
SG&A AS % REVENUES:
Unadjusted 10.8 9.4
Adjusted (1) 10.7 9.0
SG&A AS % OF GROSS PROFIT:
Unadjusted 96.1 83.8
Adjusted (1) 95.1 80.4
OPERATING MARGIN %:
Unadjusted 0.1 1.6
Adjusted (1), (2) 0.3 2.0
PRETAX MARGIN %:
Unadjusted (0.8) 0.6
Adjusted (1), (3) (0.7) 1.2
SAME STORE SG&A RECONCILIATION:
As reported $27,622 $29,682 (6.9)
Pre-tax adjustments:
Acquisition costs - (1,211)
Foreign transaction tax (416) -
Adjusted Same Store SG&A (1) $27,206 $28,471 (4.4)
SAME STORE SG&A AS % REVENUES:
Unadjusted 11.0 9.4
Adjusted (1) 10.8 9.0
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 97.2 83.8
Adjusted (1) 95.8 80.4
SAME STORE OPERATING MARGIN %:
Unadjusted - 1.6
Adjusted (1), (2) 0.2 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.
(3) Excludes the impact of SG&A reconciling items
above, as well as the other expense, net of $789,
for the period from the date of acquisition
(February 28, 2013) through June 30, 2013.
(4) Results are for the period from the date of
acquisition through June 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 June 30,
---------------------------
2014 2013 % Change
---- ---- --------
NET INCOME RECONCILIATION:
As reported $16,862 $37,388 (54.9)
After-tax adjustments:
Catastrophic events(6) 1,039 6,757
Net gain on real estate and dealership
transactions (7) (316) (4,785)
Non-cash asset impairment charges (8) 1,067 369
Loss on redemption of long-term
debt(9) 20,778 -
Legal settlements (10) 274 -
Foreign transaction tax (11) 274 -
Adjusted net income (1) $39,978 $39,729 0.6
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED
COMMON SHARES RECONCILIATION:
Adjusted net income $39,978 $39,729 0.6
Less: Adjusted earnings allocated to
participating securities $1,456 $1,692 (13.9)
------
Adjusted net income available to
diluted common shares $38,522 $38,037 1.3
DILUTED INCOME PER COMMON SHARE RECONCILIATION:
As reported $0.62 $1.43 (56.6)
After-tax adjustments:
Catastrophic events 0.04 0.26
Net gain on real estate and dealership
transactions (0.01) (0.18)
Non-cash asset impairment charges 0.04 0.01
Loss on redemption of long-term debt 0.76 -
Legal settlements 0.01 -
Foreign transaction tax 0.01 -
Adjusted diluted income per share (1) $1.47 $1.52 (3.3)
SG&A RECONCILIATION:
As reported $271,970 $251,159 8.3
Pre-tax adjustments:
Catastrophic events (1,676) (11,092)
Net gain on real estate and dealership
transactions 510 8,249
Legal settlements (442) -
Foreign transaction tax (416) -
Adjusted SG&A (1) $269,946 $248,316 8.7
SG&A AS % REVENUES:
Unadjusted 10.8 10.8
Adjusted (1) 10.7 10.6
SG&A AS % GROSS PROFIT:
Unadjusted 73.7 73.6
Adjusted (1) 73.1 72.8
OPERATING MARGIN %
Unadjusted 3.4 3.5
Adjusted (1),(2) 3.5 3.6
PRETAX MARGIN %:
Unadjusted 1.5 2.6
Adjusted (1),(3) 2.6 2.7
SAME STORE SG&A RECONCILIATION:
As reported $255,146 $250,355 1.9
Pre-tax adjustments:
Catastrophic events (1,676) (11,092)
Net gain on real estate and dealership
transactions - (200)
Legal settlements (442) -
Foreign transaction tax (416) -
Adjusted Same Store SG&A (1) $252,612 $239,063 5.7
SAME STORE SG&A AS % REVENUES:
Unadjusted 10.8 11.0
Adjusted (1) 10.7 10.5
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 73.5 75.2
Adjusted (1) 72.7 71.8
SAME STORE OPERATING MARGIN %:
Unadjusted 3.4 3.2
Adjusted (1) 3.6 3.7
Six Months Ended June 30,
-------------------------
2014 2013 % Change
---- ---- --------
NET INCOME RECONCILIATION:
As reported $48,165 $59,506 (19.1)
After-tax adjustments:
Acquisition costs (5) - 6,968
Catastrophic events(6) 1,039 7,261
Net gain on real estate and dealership
transactions (7) (316) (5,141)
Non-cash asset impairment charges (8) 1,067 369
Loss on redemption of long-term
debt(9) 20,778 -
Legal settlements (10) 274 -
Foreign transaction tax (11) 274 -
Adjusted net income (1) $71,281 $68,963 3.4
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED
COMMON SHARES RECONCILIATION:
Adjusted net income $71,281 $68,963 3.4
Less: Adjusted earnings allocated to
participating securities $2,613 $2,925 (10.7)
Adjusted net income available to
diluted common shares $68,668 $66,038 4.0
DILUTED INCOME PER COMMON SHARE RECONCILIATION:
As reported $1.80 $2.32 (22.4)
After-tax adjustments:
Acquisition costs - 0.27
Catastrophic events 0.04 0.28
Net gain on real estate and dealership
transactions (0.01) (0.19)
Non-cash asset impairment charges 0.04 0.01
Loss on redemption of long-term debt 0.77 -
Legal settlements 0.01 -
Foreign transaction tax 0.01 -
Adjusted diluted income per share (1) $2.66 $2.69 (1.12)
SG&A RECONCILIATION:
As reported $529,528 $484,592 9.3
Pre-tax adjustments:
Acquisition costs - (6,512)
Catastrophic events (1,676) (11,900)
Net gain on real estate and dealership
transactions 510 8,823
Legal settlements (442) -
Foreign transaction tax (416) -
Adjusted SG&A (1) $527,504 $475,003 11.1
SG&A AS % REVENUES:
Unadjusted 11.1 11.3
Adjusted (1) 11.1 11.0
SG&A AS % OF GROSS PROFIT:
Unadjusted 74.9 75.5
Adjusted (1) 74.6 74.0
OPERATING MARGIN %:
Unadjusted 3.3 3.2
Adjusted (1),(2) 3.3 3.5
PRETAX MARGIN %:
Unadjusted 1.8 2.3
Adjusted (1),(3) 2.4 2.6
SAME STORE SG&A RECONCILIATION:
As reported $483,483 $474,481 1.9
Pre-tax adjustments:
Acquisition costs - (6,512)
Catastrophic events (1,676) (11,900)
Net gain on real estate and dealership
transactions - (200)
Legal settlements (442) -
Foreign transaction tax (416) -
Adjusted Same Store SG&A (1) $480,949 $455,869 5.5
SAME STORE SG&A AS % REVENUES:
Unadjusted 11.1 11.4
Adjusted (1) 11.0 10.9
SAME STORE SG&A AS % OF GROSS PROFIT:
Unadjusted 74.1 76.2
Adjusted (1) 73.8 73.2
SAME STORE OPERATING MARGIN %:
Unadjusted 3.4 3.1
Adjusted (1),(4) 3.5 3.6
(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,
as well as loss on redemption of long-term debt of
$23,614 for the three and six months ended June 30,
2014, non-cash asset impairment charges of $1,721
for the three and six months ended June 30, 2014, and
non-cash asset impairment charges of $609 for the
three and six months ended June 30, 2013.
(4) Excludes the impact of Same Store SG&A reconciling
items above, as well as non-cash asset impairment
charges of $1,721 for the three and six months ended
June 30, 2014, respectively, and $609 and $607 for
the three and six months ended June 30, 2013,
respectively.
(5) Adjustment is net of tax benefit of $2,394 for the
six months ended June 30, 2013, calculated utilizing
the applicable federal and state tax rates for the
adjustment.
(6) Adjustment is net of tax benefit of $637 for the three
and six months ended June 30, 2014, and $4,335 and
$4,639 for the three and six month ended June 30,
2013, respectively, calculated utilizing the
applicable federal and state tax rates for the
adjustment.
(7) Adjustment is net of tax provision of $194 for the
three and six months ended June 30, 2014 and $3,464
and $3,682 for the three and six months ended June
30, 2013, respectively, calculated utilizing the
applicable federal and state tax rates for the
adjustment.
(8) Adjustment is net of tax benefit of $654 for the three
and six months ended June 30, 2014, and $240 for the
three and six months ended June 30, 2013, calculated
utilizing the applicable federal and state tax rates
for the adjustment.
(9) Adjustment is net of tax benefit of $2,836 for the
three and six months ended June 30, 2014, calculated
utilizing the applicable federal and state tax rates
for the adjustment.
(10) Adjustment is net of tax benefit of $168 for the three
and six months ended June 30, 2014, calculated
utilizing the applicable federal and state tax rates
for the adjustment.
(11) Adjustment is net of tax benefit of $141 for the three
and six months ended June 30, 2014, calculated
utilizing the applicable federal and state tax rates
for the adjustment.
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SOURCE Group 1 Automotive, Inc.
