HOUSTON, July 23, 2015 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), an international, Fortune 500 automotive retailer, today reported record second quarter 2015 adjusted net income of $47.9 million, a 19.9 percent increase over the prior year. Adjusted diluted earnings per share of $1.98 were also an all-time record for any quarter, and a 34.7 percent increase from the comparable, adjusted prior-year period.
The quarter included non-recurring net after-tax charges of $1.6 million reflecting non-cash asset impairments of $0.8 million, resolution of a prior period legal matter of $0.6 million, losses from flood damage of $0.6 million, and severance costs of $0.2 million, partially offset by a gain on a dealership disposition of $0.6 million. GAAP net income and diluted earnings per share were $46.3 million and $1.91, respectively. Reconciliations of non-GAAP financial measures are included in the attached financial tables.
"We are pleased to report another record-setting quarter," said Earl J. Hesterberg, Group 1's president and chief executive officer. "The combination of continued solid top-line growth in the United States and the United Kingdom, combined with improved expense leverage, delivered all-time record adjusted diluted EPS of $1.98. We are particularly pleased with our 14 percent increase in both U.S. and U.K. Same Store used vehicle sales and the acceleration of our U.S. parts and service revenue, which was up 8 percent on a Same Store basis. Finally, although overall market conditions have continued to deteriorate in Brazil, the combination of our brand profile and cost cutting initiatives allowed us to deliver a pre-tax profit in that market this quarter, which is an impressive accomplishment by our Brazilian operating team."
Consolidated Results for Second Quarter 2015 (year-over-year comparable basis)
-- Total revenue increased 8.6 percent to an all-time quarterly record of $2.7 billion; total gross profit grew 6.1 percent to $391.6 million. On a constant currency basis, revenues were up 11.7 percent. -- New vehicle revenue increased 4.7 percent, reflecting 5.4 percent higher unit sales, as U.S. Same Store new vehicle revenue increased 5.2 percent, reflecting unit sales growth of 4.5 percent. -- Used vehicle retail revenue increased 18.2 percent, primarily reflecting 17.7 percent higher used retail unit sales. U.S. Same Store used vehicle revenue increased 16.1 percent, reflecting 14.2 percent growth in unit sales. -- Parts and service gross profit increased 9.2 percent on revenue growth of 7.1 percent. U.S. Same Store parts and service gross profit increased 9.3 percent on revenue growth of 8.0 percent. -- Finance and Insurance (F&I) gross profit increased 16.7 percent, as total retail units sold increased 10.2 percent and F&I per retail unit improved $78 to $1,381, a 6.0 percent increase. U.S. Same Store F&I gross profit grew 13.1 percent, as F&I per retail unit improved $64 to $1,525. -- Adjusted selling, general and administrative (SG&A) expenses as a percent of gross profit improved 170 basis points, to 71.4 percent. U.S. Same Store adjusted SG&A improved 90 basis points, to a best-quarter-ever level of 69.6 percent. On a GAAP basis, SG&A expenses as a percent of gross profit improved 200 basis points, to 71.7 percent. -- Adjusted operating margin increased 20 basis points to 3.7 percent. On a GAAP basis, operating margin also grew 20 basis points, to 3.6 percent.
For the six-month period ended June 30, 2015, the Company reported adjusted net income of $83.7 million, or $3.44 per diluted share, compared to adjusted net income of $71.3 million, or $2.66 per diluted share for the same period in the prior year. On a GAAP basis, net income and diluted EPS for the six-month period ended June 30, 2015 were $82.1 million and $3.38, respectively. The Company's total revenue for the six-month period ended June 30, 2015 increased 8.1 percent to $5.2 billion. On a constant currency basis, revenue increased 11.0 percent.
Segment Results for Second Quarter 2015 (year-over-year comparable basis)
-- United States: The Company's U.S. revenues were $2.3 billion, an increase of 11.0 percent. The revenue growth was primarily attributed to unit sales increases of 6.3 percent in new vehicles and 18.2 percent in retail used vehicles, as well as an increase of 8.3 percent in parts and service revenue. The higher revenue drove U.S. gross profit growth of 8.0 percent, reflecting the higher new and used retail volumes, expanded parts and service gross margins of 90 basis points, and an F&I gross profit increase of 18.2 percent, driven by an increase in both volume and F&I per retail unit of $93 to $1,535. On a comparable basis, adjusted SG&A expenses as a percent of gross profit improved 150 basis points to a best ever 69.8 percent and adjusted operating margin grew 10 basis points to 4.1 percent. The Company's U.S. operations accounted for 83.9 percent of total revenues and 87.3 percent of total gross profit. -- United Kingdom: The Company's U.K. operations accounted for 11.3 percent of total revenues and 8.7 percent of total gross profit. Total revenue increased 22.6 percent (34.7 percent on a constant currency basis) to $308.2 million, and gross profit increased 14.9 percent (26.1 percent on a local currency basis). The gross profit increase was driven by new vehicle retail revenue growth of 21.6 percent, total used vehicle revenue growth of 23.3 percent, parts and service revenue growth of 24.7 percent, and an F&I revenue increase of 28.7 percent. On a comparable basis, adjusted SG&A expenses as a percent of gross profit increased 230 basis points to 77.9 percent and adjusted operating margin was 2.1 percent. -- Brazil: The Company's Brazil operations accounted for 4.8 percent of total revenues and 4.0 percent of total gross profit. Gross profit was $15.5 million, representing an increase of 0.3 percent over prior year on a Same Store constant currency basis. Adjusted SG&A expenses as a percent of gross profit improved 420 basis points to 90.9 percent and adjusted operating margin was 0.7 percent, an increase of 40 basis points from the prior year.
Corporate Development
During the second quarter of 2015, the Company disposed of one Audi dealership in South Carolina and terminated two Peugeot franchises in Brazil that generated trailing-twelve-month revenues of approximately $25 million.
Year to date, the Company has acquired two Audi franchises that are expected to generate approximately $240 million in annual revenues and disposed of four franchises that generated trailing-twelve-month revenues of approximately $30 million.
Share Repurchase Authorization
During the quarter, the Company repurchased approximately 208,000 shares at an average price per share of $81.30 for a total of $16.9 million. Year to date, the Company has repurchased approximately 407,000 shares at an average price of $81.46 for a total of $33.1 million. As of June 30, 2015, $66.3 million remains available under the Company's prior common stock share repurchase authorization. Future repurchases may be made from time to time, based on market conditions, legal requirements and other corporate considerations, in the open market or in privately negotiated transactions.
Second Quarter Earnings Conference Call Details
The Company's senior management will host a conference call today at 10 a.m. ET to discuss the second quarter financial results and the Company's outlook and strategy.
The conference call will be simulcast live on the Internet at www.group1auto.com, then click on 'Investor Relations' and then 'Events' or through this link: http://www.group1corp.com/events. A webcast replay will be available for 30 days.
The conference call will also be available live by dialing in 15 minutes prior to the start of the call at:
Domestic: 1-888-317-6003 International: 1-412-317-6061 Access Code: 7294157
A telephonic replay will be available following the call through August 28, 2015 at 11:59 p.m. ET by dialing:
Domestic: 1-877-344-7529 International: 1-412-317-0088 Access Code: 10068876
About Group 1 Automotive, Inc.
Group 1 owns and operates 148 automotive dealerships, 193 franchises, and 38 collision centers in the United States, the United Kingdom and Brazil that offer 32 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service 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, --------------------------- 2015 2014 % Change ---- ---- -------- REVENUES: New vehicle retail sales $1,534,262 $1,466,064 4.7 Used vehicle retail sales 682,294 577,250 18.2 Used vehicle wholesale sales 101,512 94,971 6.9 Parts and service 303,193 283,207 7.1 Finance and insurance 105,219 90,146 16.7 ------- ------ Total revenues 2,726,480 2,511,638 8.6 COST OF SALES: New vehicle retail sales 1,458,132 1,385,218 5.3 Used vehicle retail sales 636,235 531,584 19.7 Used vehicle wholesale sales 102,445 93,730 9.3 Parts and service 138,095 131,958 4.7 ------- ------- Total cost of sales 2,334,907 2,142,490 9.0 GROSS PROFIT 391,573 369,148 6.1 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 280,568 271,970 3.2 DEPRECIATION AND AMORTIZATION EXPENSE 11,946 10,753 11.1 ASSET IMPAIRMENTS 1,039 1,721 (39.6) OPERATING INCOME 98,020 84,704 15.7 OTHER EXPENSE: Floorplan interest expense (10,015) (10,329) (3.0) Other interest expense, net (14,228) (12,567) 13.2 Loss on extinguishment of long- term debt - (23,614) (100.0) --- ------- INCOME BEFORE INCOME TAXES 73,777 38,194 93.2 PROVISION FOR INCOME TAXES (27,467) (21,332) 28.8 NET INCOME $46,310 $16,862 174.6 ======= ======= Earnings allocated to participating securities $(1,792) $(619) 189.5 Earnings available to diluted common shares $44,518 $16,243 174.1 ======= ======= DILUTED EARNINGS PER SHARE $1.91 $0.62 208.1 Weighted average dilutive common shares outstanding 23,315 26,242 (11.2) Weighted average participating securities 944 986 (4.3) --- --- Total weighted average shares outstanding 24,259 27,228 (10.9) Six Months Ended June 30, ------------------------- 2015 2014 % Change ---- ---- -------- REVENUES: New vehicle retail sales $2,866,986 $2,734,900 4.8 Used vehicle retail sales 1,305,487 1,127,147 15.8 Used vehicle wholesale sales 201,704 184,144 9.5 Parts and service 585,382 552,524 5.9 Finance and insurance 199,775 173,786 15.0 Total revenues 5,159,334 4,772,501 8.1 COST OF SALES: New vehicle retail sales 2,721,125 2,587,148 5.2 Used vehicle retail sales 1,213,307 1,038,680 16.8 Used vehicle wholesale sales 199,958 179,791 11.2 Parts and service 269,487 259,612 3.8 Total cost of sales 4,403,877 4,065,231 8.3 GROSS PROFIT 755,457 707,270 6.8 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 552,037 529,528 4.3 DEPRECIATION AND AMORTIZATION EXPENSE 23,630 20,678 14.3 ASSET IMPAIRMENTS 1,039 1,721 (39.6) OPERATING INCOME 178,751 155,343 15.1 OTHER EXPENSE: Floorplan interest expense (19,362) (21,242) (8.9) Other interest expense, net (28,139) (23,080) 21.9 Loss on extinguishment of long- term debt - (23,614) (100.0) INCOME BEFORE INCOME TAXES 131,250 87,407 50.2 PROVISION FOR INCOME TAXES (49,126) (39,242) 25.2 NET INCOME $82,124 $48,165 70.5 ======= ======= Earnings allocated to participating securities $(3,176) $(1,773) 79.1 Earnings available to diluted common shares $78,948 $46,392 70.2 ======= ======= DILUTED EARNINGS PER SHARE $3.38 $1.80 87.8 Weighted average dilutive common shares outstanding 23,380 25,837 (9.5) Weighted average participating securities 938 974 (3.7) --- --- Total weighted average shares outstanding 24,318 26,811 (9.3)
Group 1 Automotive, Inc. Consolidated Balance Sheets (Dollars in thousands) June 30, December 31, 2015 2014 ---- ---- % Change -------- ASSETS: (Unaudited) CURRENT ASSETS: Cash and cash equivalents $24,225 $40,975 (40.9) Contracts in transit and vehicle receivables, net 233,888 237,448 (1.5) Accounts and notes receivable, net 144,265 151,330 (4.7) Inventories, net 1,657,105 1,556,705 6.4 Deferred income taxes 12,031 11,062 8.8 Prepaid expenses and other current assets 27,851 37,699 (26.1) ------ ------ Total current assets 2,099,365 2,035,219 3.2 --------- --------- PROPERTY AND EQUIPMENT, net 965,363 950,388 1.6 GOODWILL AND INTANGIBLE FRANCHISE RIGHTS 1,219,011 1,134,324 7.5 OTHER ASSETS 19,235 21,561 (10.8) Total assets $4,302,974 $4,141,492 3.9 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY: CURRENT LIABILITIES: Floorplan notes payable -credit facility and other $1,205,729 $1,143,246 5.5 Offset account related to floorplan notes payable -credit facility (22,466) (39,616) (43.3) Floorplan notes payable -manufacturer affiliates 308,710 307,656 0.3 Offset account related to floorplan notes payable -manufacturer affiliates (23,300) (22,500) 3.6 Current maturities of long-term debt 76,442 72,630 5.2 Accounts payable 304,361 288,320 5.6 Accrued expenses 161,123 172,463 (6.6) Total current liabilities 2,010,599 1,922,199 4.6 5.00% SENIOR NOTES (aggregate principal of $550,000 at June 30, 2015 and December 31, 2014) 540,666 540,100 0.1 REAL ESTATE CREDIT FACILITY, net of current maturities 25,429 27,099 (6.2) ACQUISITION LINE 90,721 69,713 30.1 OTHER REAL ESTATE RELATED AND LONG-TERM DEBT, net of current maturities 334,736 319,984 4.6 CAPITAL LEASE OBLIGATIONS RELATED TO REAL ESTATE, net of current maturities 50,300 51,941 (3.2) DEFERRED INCOME TAXES 147,818 141,239 4.7 LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES 29,020 25,311 14.7 OTHER LIABILITIES 69,534 65,896 5.5 STOCKHOLDERS' EQUITY: Common stock 258 257 0.4 Additional paid-in capital 287,045 286,854 0.1 Retained earnings 924,473 852,057 8.5 Accumulated other comprehensive loss (103,341) (81,984) 26.1 Treasury stock (104,284) (79,174) 31.7 Total stockholders' equity $1,004,151 $978,010 2.7 ---------- -------- Total liabilities and stockholders' equity $4,302,974 $4,141,492 3.9 ---------- ----------
Group 1 Automotive, Inc. Additional Information - Consolidated (Unaudited) Three Months Ended Six Months Ended June 30, June 30, -------- -------- 2015 (%) 2014 (%) 2015 (%) 2014 (%) -------- -------- -------- -------- NEW VEHICLE UNIT SALES GEOGRAPHIC MIX: Region Geographic Market ------ ----------------- East Massachusetts 6.5 5.9 6.2 5.7 Georgia 4.6 4.8 4.6 4.6 New Jersey 2.4 3.7 2.3 3.5 Florida 2.3 1.4 1.8 1.3 New Hampshire 2.0 2.2 1.9 2.2 Louisiana 1.6 1.8 1.6 1.9 Mississippi 1.5 1.5 1.5 1.4 South Carolina 1.4 1.5 1.4 1.4 Alabama 0.7 0.9 0.8 0.8 Maryland 0.5 0.5 0.5 0.5 New York - 2.2 - 2.0 23.5 26.4 22.6 25.3 West Texas 38.5 34.1 38.6 34.1 California 10.1 9.9 9.8 9.7 Oklahoma 7.5 8.1 7.6 8.3 Kansas 2.1 2.5 2.1 2.5 Louisiana 0.7 0.7 0.7 0.7 58.9 55.3 58.8 55.3 International United Kingdom 10.5 8.5 10.9 9.2 Brazil 7.1 9.8 7.7 10.2 100.0 100.0 100.0 100.0 ===== ===== ===== ===== NEW VEHICLE UNIT SALES BRAND MIX: --------------------------------- Toyota/Scion/Lexus 26.9 27.2 26.5 26.6 BMW/MINI 11.3 11.7 11.5 11.5 Ford/Lincoln 11.2 10.8 11.6 11.4 Honda/Acura 10.8 11.4 10.8 11.5 Nissan 8.2 9.3 8.7 9.5 Chevrolet/GMC/Buick/Cadillac 7.3 5.4 7.4 5.4 Volkswagen/Audi/Porsche 7.2 6.3 6.6 6.4 Hyundai/Kia 6.4 5.5 6.0 5.5 Chrysler/Dodge/Jeep/RAM 4.8 4.4 4.6 4.5 Mercedes-Benz/smart/Sprinter 4.3 4.4 4.2 4.2 Other 1.6 3.6 2.1 3.5 100.0 100.0 100.0 100.0 ===== ===== ===== =====
Group 1 Automotive, Inc. Additional Information - U.S. (Unaudited) (Dollars in thousands, except per unit amounts) Three Months Ended June 30, --------------------------- 2015 2014 % Change ---- ---- -------- REVENUES: New vehicle retail sales $1,279,569 $1,191,321 7.4 Used vehicle retail sales 572,533 474,075 20.8 Used vehicle wholesale sales 73,493 68,649 7.1 ------ ------ Total used 646,026 542,724 19.0 Parts and service 264,063 243,796 8.3 Finance and insurance 97,789 82,755 18.2 ------ ------ Total $2,287,447 $2,060,596 11.0 GROSS MARGIN %: New vehicle retail sales 4.6 5.2 Used vehicle retail sales 7.0 8.2 Used vehicle wholesale sales (0.6) 1.7 Total used 6.2 7.4 Parts and service 55.0 54.1 Finance and insurance 100.0 100.0 Total 15.0 15.4 GROSS PROFIT: New vehicle retail sales $59,434 $62,096 (4.3) Used vehicle retail sales 40,301 38,922 3.5 Used vehicle wholesale sales (457) 1,139 (140.1) ---- ----- Total used 39,844 40,061 (0.5) Parts and service 145,117 131,865 10.0 Finance and insurance 97,789 82,755 18.2 ------ ------ Total $342,184 $316,777 8.0 UNITS SOLD: Retail new vehicles sold 36,882 34,685 6.3 Retail used vehicles sold 26,835 22,707 18.2 Wholesale used vehicles sold 11,265 10,461 7.7 ------ ------ Total used 38,100 33,168 14.9 AVERAGE RETAIL SALES PRICE: New vehicle retail $34,694 $34,347 1.0 Used vehicle retail $21,335 $20,878 2.2 GROSS PROFIT PER UNIT SOLD: New vehicle retail sales $1,611 $1,790 (10.0) Used vehicle retail sales 1,502 1,714 (12.4) Used vehicle wholesale sales (41) 109 (137.6) Total used 1,046 1,208 (13.4) Finance and insurance (per retail unit) $1,535 $1,442 6.4 OTHER: (1) SG&A expenses $238,964 $225,898 5.8 SG&A as % revenues 10.4 11.0 SG&A as % gross profit 69.8 71.3 Operating margin % 4.1 4.0 Pretax margin % 3.1 3.0 INTEREST EXPENSE: Floorplan interest $(8,958) $(8,361) 7.1 Floorplan assistance 12,583 11,378 10.6 ------ ------ Net floorplan income $3,625 $3,017 20.2 Other interest expense, net $(13,073) $(11,799) 10.8 Six Months Ended June 30, ------------------------- 2015 2014 % Change ---- ---- -------- REVENUES: New vehicle retail sales $2,366,728 $2,203,873 7.4 Used vehicle retail sales 1,084,506 924,562 17.3 Used vehicle wholesale sales 142,871 133,120 7.3 ------- ------- Total used 1,227,377 1,057,682 16.0 Parts and service 507,007 474,115 6.9 Finance and insurance 184,835 159,552 15.8 ------- ------- Total $4,285,947 $3,895,222 10.0 GROSS MARGIN %: New vehicle retail sales 4.8 5.1 Used vehicle retail sales 7.5 8.3 Used vehicle wholesale sales 1.2 2.6 Total used 6.7 7.5 Parts and service 54.5 53.6 Finance and insurance 100.0 100.0 Total 15.3 15.6 GROSS PROFIT: New vehicle retail sales $113,121 $113,031 0.1 Used vehicle retail sales 80,853 76,362 5.9 Used vehicle wholesale sales 1,688 3,395 (50.3) ----- ----- Total used 82,541 79,757 3.5 Parts and service 276,175 254,168 8.7 Finance and insurance 184,835 159,552 15.8 ------- ------- Total $656,672 $606,508 8.3 UNITS SOLD: Retail new vehicles sold 68,320 64,632 5.7 Retail used vehicles sold 51,983 45,450 14.4 Wholesale used vehicles sold 21,809 20,411 6.8 Total used 73,792 65,861 12.0 AVERAGE RETAIL SALES PRICE: New vehicle retail $34,642 $34,099 1.6 Used vehicle retail $20,863 $20,342 2.6 GROSS PROFIT PER UNIT SOLD: New vehicle retail sales $1,656 $1,749 (5.3) Used vehicle retail sales 1,555 1,680 (7.4) Used vehicle wholesale sales 77 166 (53.6) Total used 1,119 1,211 (7.6) Finance and insurance (per retail unit) $1,536 $1,449 6.0 OTHER: (1) SG&A expenses $468,937 $442,294 6.0 SG&A as % revenues 10.9 11.4 SG&A as % gross profit 71.4 72.9 Operating margin % 3.9 3.8 Pretax margin % 2.9 2.8 INTEREST EXPENSE: Floorplan interest $(17,476) $(16,945) 3.1 Floorplan assistance 23,159 21,093 9.8 ------ ------ Net floorplan income $5,683 $4,148 37.0 Other interest expense, net $(25,797) $(22,062) 16.9
(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, 2015 2014 % Change Local Currency % Change -------- REVENUES: New vehicle retail sales $160,245 $131,803 21.6 33.6 Used vehicle retail sales 91,172 73,260 24.4 36.8 Used vehicle wholesale sales 25,756 21,549 19.5 31.5 ------ ------ Total used 116,928 94,809 23.3 35.6 Parts and service 25,202 20,211 24.7 37.0 Finance and insurance 5,792 4,501 28.7 41.3 ----- ----- Total $308,167 $251,324 22.6 34.7 GROSS MARGIN %: New vehicle retail sales 6.1 6.9 Used vehicle retail sales 5.4 6.7 Used vehicle wholesale sales (2.5) (1.3) Total used 3.6 4.9 Parts and service 55.8 56.1 Finance and insurance 100.0 100.0 Total 11.0 11.7 GROSS PROFIT: New vehicle retail sales $9,792 $9,040 8.3 18.7 Used vehicle retail sales 4,894 4,930 (0.7) 9.2 Used vehicle wholesale sales (632) (281) 124.9 145.5 ---- ---- Total used 4,262 4,649 (8.3) 0.9 Parts and service 14,070 11,336 24.1 36.4 Finance and insurance 5,792 4,501 28.7 41.3 ----- ----- Total $33,916 $29,526 14.9 26.1 UNITS SOLD: Retail new vehicles sold 4,686 3,626 29.2 Retail used vehicles sold 3,638 2,720 33.8 Wholesale used vehicles sold 2,956 2,195 34.7 ----- ----- Total used 6,594 4,915 34.2 AVERAGE RETAIL SALES PRICE: New vehicle retail $34,197 $36,349 (5.9) 3.4 Used vehicle retail $25,061 $26,934 (7.0) 2.3 GROSS PROFIT PER UNIT SOLD: New vehicle retail sales $2,090 $2,493 (16.2) (8.2) Used vehicle retail sales 1,345 1,813 (25.8) (18.4) Used vehicle wholesale sales (214) (128) 67.2 82.3 Total used 646 946 (31.7) (24.8) Finance and insurance (per retail unit) $696 $709 (1.8) 7.7 OTHER: (1) SG&A expenses $26,433 $22,316 18.4 30.2 SG&A as % revenues 8.6 8.9 SG&A as % gross profit 77.9 75.6 Operating margin % 2.1 2.5 Pretax margin % 1.6 2.2 INTEREST EXPENSE: Floorplan interest $(555) $(336) 65.2 Floorplan assistance 198 156 26.9 --- --- Net floorplan expense $(357) $(180) 98.3 Other interest expense, net $(824) $(509) 61.9 Six Months Ended June 30, ------------------------- 2015 2014 % Change Local Currency % Change -------- REVENUES: New vehicle retail sales $311,456 $262,404 18.7 30.4 Used vehicle retail sales 180,308 144,737 24.6 36.5 Used vehicle wholesale sales 53,834 41,194 30.7 43.3 ------ ------ Total used 234,142 185,931 25.9 38.0 Parts and service 50,790 41,571 22.2 33.8 Finance and insurance 11,320 9,119 24.1 36.1 ------ ----- Total $607,708 $499,025 21.8 33.6 GROSS MARGIN %: New vehicle retail sales 6.3 6.7 Used vehicle retail sales 5.3 5.9 Used vehicle wholesale sales (0.6) 0.4 Total used 3.9 4.7 Parts and service 54.7 55.1 Finance and insurance 100.0 100.0 Total 11.2 11.7 GROSS PROFIT: New vehicle retail sales $19,742 $17,538 12.6 23.8 Used vehicle retail sales 9,532 8,519 11.9 22.8 Used vehicle wholesale sales (311) 170 (282.9) (296.2) ---- --- Total used 9,221 8,689 6.1 16.5 Parts and service 27,791 22,909 21.3 32.9 Finance and insurance 11,320 9,119 24.1 36.1 ------ ----- Total $68,074 $58,255 16.9 28.2 UNITS SOLD: Retail new vehicles sold 9,195 7,371 24.7 Retail used vehicles sold 7,281 5,459 33.4 Wholesale used vehicles sold 5,891 4,356 35.2 Total used 13,172 9,815 34.2 AVERAGE RETAIL SALES PRICE: New vehicle retail $33,872 $35,600 (4.9) 4.6 Used vehicle retail $24,764 $26,513 (6.6) 2.3 GROSS PROFIT PER UNIT SOLD: New vehicle retail sales $2,147 $2,379 (9.8) (0.7) Used vehicle retail sales 1,309 1,561 (16.1) (7.9) Used vehicle wholesale sales (53) 39 (235.9) (245.1) Total used 700 885 (20.9) (13.2) Finance and insurance (per retail unit) $687 $711 (3.4) 6.0 OTHER:(1) SG&A expenses $53,195 $44,788 18.8 30.2 SG&A as % revenues 8.8 9.0 SG&A as % gross profit 78.1 76.9 Operating margin % 2.1 2.4 Pretax margin % 1.7 2.0 INTEREST EXPENSE: Floorplan interest $(1,065) $(769) 38.5 Floorplan assistance 383 258 48.4 --- --- Net floorplan expense $(682) $(511) 33.5 Other interest expense, net $(1,559) $(960) 62.4
(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, 2015 2014 % Change Local Currency % Change -------- REVENUES: New vehicle retail sales $94,448 $142,940 (33.9) (8.9) Used vehicle retail sales 18,589 29,915 (37.9) (14.3) Used vehicle wholesale sales 2,263 4,773 (52.6) (34.6) ----- ----- Total used 20,852 34,688 (39.9) (17.1) Parts and service 13,928 19,200 (27.5) 0.1 Finance and insurance 1,638 2,890 (43.3) (21.9) ----- ----- Total $130,866 $199,718 (34.5) (9.6) GROSS MARGIN %: New vehicle retail sales 7.3 6.8 Used vehicle retail sales 4.6 6.1 Used vehicle wholesale sales 6.9 8.0 Total used 4.9 6.3 Parts and service 42.4 41.9 Finance and insurance 100.0 100.0 Total 11.8 11.4 GROSS PROFIT: New vehicle retail sales $6,904 $9,710 (28.9) (2.0) Used vehicle retail sales 864 1,814 (52.4) (34.3) Used vehicle wholesale sales 156 383 (59.3) (43.9) --- --- Total used 1,020 2,197 (53.6) (36.0) Parts and service 5,911 8,048 (26.6) 1.3 Finance and insurance 1,638 2,890 (43.3) (21.9) ----- ----- Total $15,473 $22,845 (32.3) (6.6) UNITS SOLD: Retail new vehicles sold 3,197 4,145 (22.9) Retail used vehicles sold 966 1,294 (25.3) Wholesale used vehicles sold 406 574 (29.3) --- --- Total used 1,372 1,868 (26.6) AVERAGE RETAIL SALES PRICE: New vehicle retail $29,543 $34,485 (14.3) 18.1 Used vehicle retail $19,243 $23,118 (16.8) 14.8 GROSS PROFIT PER UNIT SOLD: New vehicle retail sales $2,160 $2,343 (7.8) 27.1 Used vehicle retail sales 894 1,402 (36.2) (12.0) Used vehicle wholesale sales 384 667 (42.4) (20.7) Total used 743 1,176 (36.8) (12.8) Finance and insurance (per retail unit) $393 $531 (26.0) 2.1 OTHER: (1) SG&A expenses $14,063 $21,732 (35.3) (10.7) SG&A as % revenues 10.7 10.9 SG&A as % gross profit 90.9 95.1 Operating margin % 0.7 0.3 Pretax margin % - (0.7) INTEREST EXPENSE: Floorplan interest $(502) $(1,632) (69.2) Floorplan assistance - - - --- --- Net floorplan expense $(502) $(1,632) (69.2) Other interest expense, net $(331) $(259) 27.8 Six Months Ended June 30, ------------------------- 2015 2014 % Change Local Currency % Change -------- REVENUES: New vehicle retail sales $188,802 $268,623 (29.7) (9.1) Used vehicle retail sales 40,673 57,848 (29.7) (9.9) Used vehicle wholesale sales 4,999 9,830 (49.1) (35.2) ----- ----- Total used 45,672 67,678 (32.5) (13.5) Parts and service 27,585 36,838 (25.1) (3.0) Finance and insurance 3,620 5,115 (29.2) (8.7) ----- ----- Total $265,679 $378,254 (29.8) (9.3) GROSS MARGIN %: New vehicle retail sales 6.9 6.4 Used vehicle retail sales 4.4 6.2 Used vehicle wholesale sales 7.4 8.0 Total used 4.7 6.5 Parts and service 43.2 43.0 Finance and insurance 100.0 100.0 Total 11.6 11.2 GROSS PROFIT: New vehicle retail sales $12,998 $17,183 (24.4) (1.8) Used vehicle retail sales 1,795 3,586 (49.9) (36.0) Used vehicle wholesale sales 369 788 (53.2) (40.5) --- --- Total used 2,164 4,374 (50.5) (36.8) Parts and service 11,929 15,835 (24.7) (2.7) Finance and insurance 3,620 5,115 (29.2) (8.7) ----- ----- Total $30,711 $42,507 (27.8) (6.6) UNITS SOLD: Retail new vehicles sold 6,489 8,202 (20.9) Retail used vehicles sold 2,158 2,689 (19.7) Wholesale used vehicles sold 867 1,247 (30.5) --- ----- Total used 3,025 3,936 (23.1) AVERAGE RETAIL SALES PRICE: New vehicle retail $29,096 $32,751 (11.2) 14.9 Used vehicle retail $18,848 $21,513 (12.4) 12.3 GROSS PROFIT PER UNIT SOLD: New vehicle retail sales $2,003 $2,095 (4.4) 24.1 Used vehicle retail sales 832 1,334 (37.6) (20.3) Used vehicle wholesale sales 426 632 (32.6) (14.4) Total used 715 1,111 (35.6) (17.8) Finance and insurance (per retail unit) $419 $470 (10.9) 15.0 OTHER: (1) SG&A expenses $28,798 $40,422 (28.8) (7.9) SG&A as % revenues 10.8 10.7 SG&A as % gross profit 93.8 95.1 Operating margin % 0.3 0.3 Pretax margin % (0.3) (0.7) INTEREST EXPENSE: Floorplan interest $(821) $(3,528) (76.7) Floorplan assistance - - - --- --- Net floorplan expense $(821) $(3,528) (76.7) Other interest expense, net $(784) $(58) 1,251.7
(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 - Consolidated (Unaudited) (Dollars in thousands, except per unit amounts) Three Months Ended June 30, 2015 2014 % Change Local Currency % Change -------- REVENUES: New vehicle retail sales $1,534,262 $1,466,064 4.7 8.2 Used vehicle retail sales 682,294 577,250 18.2 21.0 Used vehicle wholesale sales 101,512 94,971 6.9 10.5 ------- ------ Total used 783,806 672,221 16.6 19.5 Parts and service 303,193 283,207 7.1 9.8 Finance and insurance 105,219 90,146 16.7 18.0 ------- ------ Total $2,726,480 $2,511,638 8.6 11.7 GROSS MARGIN %: New vehicle retail sales 5.0 5.5 Used vehicle retail sales 6.8 7.9 Used vehicle wholesale sales (0.9) 1.3 Total used 5.8 7.0 Parts and service 54.5 53.4 Finance and insurance 100.0 100.0 Total 14.4 14.7 GROSS PROFIT: New vehicle retail sales $76,130 $80,846 (5.8) (1.4) Used vehicle retail sales 46,059 45,666 0.9 2.6 Used vehicle wholesale sales (933) 1,241 (175.2) (175.2) ---- ----- Total used 45,126 46,907 (3.8) (2.1) Parts and service 165,098 151,249 9.2 11.6 Finance and insurance 105,219 90,146 16.7 18.0 ------- ------ Total $391,573 $369,148 6.1 8.6 UNITS SOLD: Retail new vehicles sold 44,765 42,456 5.4 Retail used vehicles sold 31,439 26,721 17.7 Wholesale used vehicles sold 14,627 13,230 10.6 ------ ------ Total used 46,066 39,951 15.3 AVERAGE RETAIL SALES PRICE: New vehicle retail $34,274 $34,531 (0.7) 2.6 Used vehicle retail $21,702 $21,603 0.5 2.8 GROSS PROFIT PER UNIT SOLD: New vehicle retail sales $1,701 $1,904 (10.7) (6.5) Used vehicle retail sales 1,465 1,709 (14.3) (12.8) Used vehicle wholesale sales (64) 94 (168.1) (168.0) Total used 980 1,174 (16.5) (15.1) Finance and insurance (per retail unit) $1,381 $1,303 6.0 7.2 OTHER: (1) SG&A expenses $279,460 $269,946 3.5 6.5 SG&A as % revenues 10.2 10.7 SG&A as % gross profit 71.4 73.1 Operating margin % 3.7 3.5 Pretax margin % 2.8 2.6 INTEREST EXPENSE: Floorplan interest $(10,015) $(10,329) (3.0) Floorplan assistance 12,781 11,534 10.8 ------ ------ Net floorplan income $2,766 $1,205 129.5 Other interest expense, net $(14,228) $(12,567) 13.2 Six Months Ended June 30, 2015 2014 % Change Local Currency % Change -------- REVENUES: New vehicle retail sales $2,866,986 $2,734,900 4.8 8.0 Used vehicle retail sales 1,305,487 1,127,147 15.8 18.4 Used vehicle wholesale sales 201,704 184,144 9.5 13.1 ------- ------- Total used 1,507,191 1,311,291 14.9 17.6 Parts and service 585,382 552,524 5.9 8.3 Finance and insurance 199,775 173,786 15.0 16.2 ------- ------- Total $5,159,334 $4,772,501 8.1 11.0 GROSS MARGIN %: New vehicle retail sales 5.1 5.4 Used vehicle retail sales 7.1 7.8 Used vehicle wholesale sales 0.9 2.4 Total used 6.2 7.1 Parts and service 54.0 53.0 Finance and insurance 100.0 100.0 Total 14.6 14.8 GROSS PROFIT: New vehicle retail sales $145,861 $147,752 (1.3) 2.7 Used vehicle retail sales 92,180 88,467 4.2 5.8 Used vehicle wholesale sales 1,746 4,353 (59.9) (58.1) ----- ----- Total used 93,926 92,820 1.2 2.8 Parts and service 315,895 292,912 7.8 9.9 Finance and insurance 199,775 173,786 15.0 16.2 ------- ------- Total $755,457 $707,270 6.8 9.0 UNITS SOLD: Retail new vehicles sold 84,004 80,205 4.7 Retail used vehicles sold 61,422 53,598 14.6 Wholesale used vehicles sold 28,567 26,014 9.8 ------ ------ Total used 89,989 79,612 13.0 AVERAGE RETAIL SALES PRICE: New vehicle retail $34,129 $34,099 0.1 3.1 Used vehicle retail $21,254 $21,030 1.1 3.3 GROSS PROFIT PER UNIT SOLD: New vehicle retail sales $1,736 $1,842 (5.8) (2.0) Used vehicle retail sales 1,501 1,651 (9.1) (7.7) Used vehicle wholesale sales 61 167 (63.5) (61.9) Total used 1,044 1,166 (10.5) (9.0) Finance and insurance (per retail unit) $1,374 $1,299 5.8 6.9 OTHER: (1) SG&A expenses $550,930 $527,504 4.4 7.0 SG&A as % revenues 10.7 11.1 SG&A as % gross profit 72.9 74.6 Operating margin % 3.5 3.3 Pretax margin % 2.6 2.4 INTEREST EXPENSE: Floorplan interest $(19,362) $(21,242) (8.9) Floorplan assistance 23,542 21,351 10.3 ------ ------ Net floorplan income $4,180 $109 3,734.9 Other interest expense, net $(28,139) $(23,080) 21.9
(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, --------------------------- 2015 2014 % Change ---- ---- -------- REVENUES: New vehicle retail sales $1,186,659 $1,128,008 5.2 Used vehicle retail sales 527,586 454,384 16.1 Used vehicle wholesale sales 65,582 65,332 0.4 ------ ------ Total used 593,168 519,716 14.1 Parts and service 249,437 230,988 8.0 Finance and insurance 91,104 80,567 13.1 ------ ------ Total $2,120,368 $1,959,279 8.2 GROSS MARGIN %: New vehicle retail sales 4.5 5.2 Used vehicle retail sales 7.1 8.3 Used vehicle wholesale sales (0.2) 1.7 Total used 6.3 7.5 Parts and service 54.7 54.0 Finance and insurance 100.0 100.0 Total 15.0 15.5 GROSS PROFIT: New vehicle retail sales $53,742 $58,636 (8.3) Used vehicle retail sales 37,374 37,686 (0.8) Used vehicle wholesale sales (134) 1,108 (112.1) ---- ----- Total used 37,240 38,794 (4.0) Parts and service 136,362 124,758 9.3 Finance and insurance 91,104 80,567 13.1 ------ ------ Total $318,448 $302,755 5.2 UNITS SOLD: Retail new vehicles sold 34,657 33,155 4.5 Retail used vehicles sold 25,086 21,973 14.2 Wholesale used vehicles sold 10,472 10,123 3.4 ------ ------ Total used 35,558 32,096 10.8 AVERAGE RETAIL SALES PRICE: New vehicle retail $34,240 $34,022 0.6 Used vehicle retail $21,031 $20,679 1.7 GROSS PROFIT PER UNIT SOLD: New vehicle retail sales $1,551 $1,769 (12.3) Used vehicle retail sales 1,490 1,715 (13.1) Used vehicle wholesale sales (13) 109 (111.9) Total used 1,047 1,209 (13.4) Finance and insurance (per retail unit) $1,525 $1,461 4.4 OTHER:(2) SG&A expenses $221,615 $213,316 3.9 SG&A as % revenues 10.5 10.9 SG&A as % gross profit 69.6 70.5 Operating margin % 4.1 4.1 Six Months Ended June 30, ------------------------- 2015 2014 % Change ---- ---- -------- REVENUES: New vehicle retail sales $2,205,332 $2,092,306 5.4 Used vehicle retail sales 997,217 887,125 12.4 Used vehicle wholesale sales 130,352 125,494 3.9 ------- ------- Total used 1,127,569 1,012,619 11.4 Parts and service 479,800 449,341 6.8 Finance and insurance 172,181 155,497 10.7 ------- ------- Total $3,984,882 $3,709,763 7.4 GROSS MARGIN %: New vehicle retail sales 4.7 5.1 Used vehicle retail sales 7.5 8.4 Used vehicle wholesale sales 1.4 2.7 Total used 6.8 7.7 Parts and service 54.1 53.5 Finance and insurance 100.0 100.0 Total 15.3 15.7 GROSS PROFIT: New vehicle retail sales $102,648 $107,195 (4.2) Used vehicle retail sales 74,536 74,351 0.2 Used vehicle wholesale sales 1,886 3,405 (44.6) ----- ----- Total used 76,422 77,756 (1.7) Parts and service 259,483 240,464 7.9 Finance and insurance 172,181 155,497 10.7 ------- ------- Total $610,734 $580,912 5.1 UNITS SOLD: Retail new vehicles sold 64,336 61,869 4.0 Retail used vehicles sold 48,443 44,034 10.0 Wholesale used vehicles sold 20,308 19,584 3.7 ------ ------ Total used 68,751 63,618 8.1 AVERAGE RETAIL SALES PRICE: New vehicle retail $34,278 $33,818 1.4 Used vehicle retail $20,585 $20,146 2.2 GROSS PROFIT PER UNIT SOLD: New vehicle retail sales $1,595 $1,733 (8.0) Used vehicle retail sales 1,539 1,688 (8.8) Used vehicle wholesale sales 93 174 (46.6) Total used 1,112 1,222 (9.0) Finance and insurance (per retail unit) $1,527 $1,468 4.0 OTHER: (2) SG&A expenses $436,289 $416,686 4.7 SG&A as % revenues 10.9 11.2 SG&A as % gross profit 71.4 71.7 Operating margin % 3.9 4.0
(1) Same store amounts include the results for the identical months in each period presented in the comparison, commencing with the first full month we owned the dealership and, in the case of dispositions, ending with the last full month we owned it. Same store results also include the activities of our corporate office. (2)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, 2015 2014 % Change Local Currency % Change -------- REVENUES: New vehicle retail sales $134,107 $131,804 1.7 11.8 Used vehicle retail sales 75,449 73,260 3.0 13.2 Used vehicle wholesale sales 20,062 21,549 (6.9) 2.4 ------ ------ Total used 95,511 94,809 0.7 10.7 Parts and service 19,723 20,206 (2.4) 7.2 Finance and insurance 4,934 4,500 9.6 20.3 ----- ----- Total $254,275 $251,319 1.2 11.2 GROSS MARGIN %: New vehicle retail sales 6.0 6.9 Used vehicle retail sales 5.3 6.7 Used vehicle wholesale sales (2.5) (1.3) Total used 3.7 4.9 Parts and service 57.6 56.1 Finance and insurance 100.0 100.0 Total 10.9 11.7 GROSS PROFIT: New vehicle retail sales $8,010 $9,041 (11.4) (2.9) Used vehicle retail sales 4,029 4,930 (18.3) (10.1) Used vehicle wholesale sales (497) (281) 76.9 92.8 ---- ---- Total used 3,532 4,649 (24.0) (16.3) Parts and service 11,359 11,331 0.2 10.1 Finance and insurance 4,934 4,500 9.6 20.3 ----- ----- Total $27,835 $29,521 (5.7) 3.5 UNITS SOLD: Retail new vehicles sold 4,025 3,626 11.0 Retail used vehicles sold 3,104 2,720 14.1 Wholesale used vehicles sold 2,441 2,195 11.2 ----- ----- Total used 5,545 4,915 12.8 AVERAGE RETAIL SALES PRICE: New vehicle retail $33,319 $36,350 (8.3) 0.7 Used vehicle retail $24,307 $26,934 (9.8) (0.8) GROSS PROFIT PER UNIT SOLD: New vehicle retail sales $1,990 $2,493 (20.2) (12.5) Used vehicle retail sales 1,298 1,813 (28.4) (21.2) Used vehicle wholesale sales (204) (128) 59.4 73.3 Total used 637 946 (32.7) (25.8) Finance and insurance (per retail unit) $692 $709 (2.4) 7.1 OTHER: SG&A expenses $21,689 $22,314 (2.8) 6.8 SG&A as % revenues 8.5 8.9 SG&A as % gross profit 77.9 75.6 Operating margin % 2.1 2.5 Six Months Ended June 30, 2015 2014 % Change Local Currency % Change -------- REVENUES: New vehicle retail sales $258,169 $262,406 (1.6) 8.1 Used vehicle retail sales 148,512 144,736 2.6 12.4 Used vehicle wholesale sales 40,864 41,194 (0.8) 8.8 ------ ------ Total used 189,376 185,930 1.9 11.6 Parts and service 39,904 41,566 (4.0) 5.1 Finance and insurance 9,754 9,118 7.0 17.3 ----- ----- Total $497,203 $499,020 (0.4) 9.3 GROSS MARGIN %: New vehicle retail sales 6.3 6.7 Used vehicle retail sales 5.3 5.9 Used vehicle wholesale sales (0.3) 0.4 Total used 4.1 4.7 Parts and service 56.6 55.1 Finance and insurance 100.0 100.0 Total 11.3 11.7 GROSS PROFIT: New vehicle retail sales $16,136 $17,540 (8.0) 1.2 Used vehicle retail sales 7,819 8,518 (8.2) 0.8 Used vehicle wholesale sales (120) 170 (170.6) (173.9) ---- --- Total used 7,699 8,688 (11.4) (2.7) Parts and service 22,582 22,904 (1.4) 8.0 Finance and insurance 9,754 9,118 7.0 17.3 ----- ----- Total $56,171 $58,250 (3.6) 5.8 UNITS SOLD: Retail new vehicles sold 7,844 7,371 6.4 Retail used vehicles sold 6,149 5,459 12.6 Wholesale used vehicles sold 4,818 4,356 10.6 ----- ----- Total used 10,967 9,815 11.7 AVERAGE RETAIL SALES PRICE: New vehicle retail $32,913 $35,600 (7.5) 1.6 Used vehicle retail $24,152 $26,513 (8.9) (0.2) GROSS PROFIT PER UNIT SOLD: New vehicle retail sales $2,057 $2,380 (13.6) (4.9) Used vehicle retail sales 1,272 1,560 (18.5) (10.5) Used vehicle wholesale sales (25) 39 (164.1) (166.8) Total used 702 885 (20.7) (12.9) Finance and insurance (per retail unit) $697 $711 (2.0) 7.6 OTHER: SG&A expenses $43,313 $44,786 (3.3) 6.0 SG&A as % revenues 8.7 9.0 SG&A as % gross profit 77.1 76.9 Operating margin % 2.3 2.4
(1) Same store amounts include the results for the identical months in each period presented in the comparison, commencing with the first full month we owned the dealership and, in the case of dispositions, ending with the last full month we owned it. Same store results also include the activities of our corporate office.
Group 1 Automotive, Inc. Additional Information - Same Store Brazil (1) (Unaudited) (Dollars in thousands, except per unit amounts) Three Months Ended June 30, --------------------------- 2015 2014 % Change Local Currency % Change -------- REVENUES: New vehicle retail sales $89,804 $133,825 (32.9) (7.5) Used vehicle retail sales 18,492 28,564 (35.3) (10.7) Used vehicle wholesale sales 2,240 3,848 (41.8) (19.8) ----- ----- Total used 20,732 32,412 (36.0) (11.8) Parts and service 13,794 16,927 (18.5) 12.5 Finance and insurance 1,612 2,593 (37.8) (14.3) ----- ----- Total $125,942 $185,757 (32.2) (6.5) GROSS MARGIN %: New vehicle retail sales 7.3 6.5 Used vehicle retail sales 4.7 6.0 Used vehicle wholesale sales 7.0 7.6 Total used 4.9 6.2 Parts and service 42.5 43.2 Finance and insurance 100.0 100.0 Total 11.9 11.1 GROSS PROFIT: New vehicle retail sales $6,513 $8,712 (25.2) 3.1 Used vehicle retail sales 862 1,727 (50.1) (31.3) Used vehicle wholesale sales 157 294 (46.6) (26.7) --- --- Total used 1,019 2,021 (49.6) (30.6) Parts and service 5,864 7,307 (19.7) 10.7 Finance and insurance 1,612 2,593 (37.8) (14.3) ----- ----- Total $15,008 $20,633 (27.3) 0.3 UNITS SOLD: Retail new vehicles sold 3,110 3,688 (15.7) Retail used vehicles sold 959 1,197 (19.9) Wholesale used vehicles sold 404 461 (12.4) --- --- Total used 1,363 1,658 (17.8) AVERAGE RETAIL SALES PRICE: New vehicle retail $28,876 $36,287 (20.4) 9.7 Used vehicle retail $19,283 $23,863 (19.2) 11.4 GROSS PROFIT PER UNIT SOLD: New vehicle retail sales $2,094 $2,362 (11.3) 22.2 Used vehicle retail sales 899 1,443 (37.7) (14.2) Used vehicle wholesale sales 389 638 (39.0) (16.3) Total used 748 1,219 (38.6) (15.6) Finance and insurance (per retail unit) $396 $531 (25.4) 2.9 OTHER:(2) SG&A expenses $13,569 $19,133 (29.1) (2.2) SG&A as % revenues 10.8 10.3 SG&A as % gross profit 90.4 92.7 Operating margin % 0.7 0.5 Six Months Ended June 30, 2015 2014 % Change Local Currency % Change -------- REVENUES: New vehicle retail sales $181,959 $251,039 (27.5) (6.4) Used vehicle retail sales 40,534 54,748 (26.0) (5.1) Used vehicle wholesale sales 4,974 7,983 (37.7) (20.7) ----- ----- Total used 45,508 62,731 (27.5) (7.1) Parts and service 27,334 32,662 (16.3) 8.3 Finance and insurance 3,578 4,569 (21.7) 1.0 ----- ----- Total $258,379 $351,001 (26.4) (5.0) GROSS MARGIN %: New vehicle retail sales 6.9 6.1 Used vehicle retail sales 4.4 6.1 Used vehicle wholesale sales 7.4 7.7 Total used 4.8 6.3 Parts and service 43.3 44.3 Finance and insurance 100.0 100.0 Total 11.6 10.9 GROSS PROFIT: New vehicle retail sales $12,514 $15,389 (18.7) 5.5 Used vehicle retail sales 1,802 3,367 (46.5) (31.6) Used vehicle wholesale sales 370 612 (39.5) (23.3) --- --- Total used 2,172 3,979 (45.4) (30.4) Parts and service 11,829 14,467 (18.2) 5.6 Finance and insurance 3,578 4,569 (21.7) 1.0 ----- ----- Total $30,093 $38,404 (21.6) 1.3 UNITS SOLD: Retail new vehicles sold 6,363 7,281 (12.6) Retail used vehicles sold 2,151 2,458 (12.5) Wholesale used vehicles sold 864 989 (12.6) --- --- Total used 3,015 3,447 (12.5) AVERAGE RETAIL SALES PRICE: New vehicle retail $28,596 $34,479 (17.1) 7.1 Used vehicle retail $18,844 $22,273 (15.4) 8.5 GROSS PROFIT PER UNIT SOLD: New vehicle retail sales $1,967 $2,114 (7.0) 20.7 Used vehicle retail sales 838 1,370 (38.8) (21.9) Used vehicle wholesale sales 428 619 (30.9) (12.2) Total used 720 1,154 (37.6) (20.4) Finance and insurance (per retail unit) $420 $469 (10.4) 15.5 OTHER: (2) SG&A expenses $27,519 $35,460 (22.4) 0.4 SG&A as % revenues 10.7 10.1 SG&A as % gross profit 91.4 92.3 Operating margin % 0.6 0.6
(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. Additional Information - Same Store Consolidated (1) (Unaudited) (Dollars in thousands, except per unit amounts) Three Months Ended June 30, 2015 2014 % Change Local Currency % Change -------- REVENUES: New vehicle retail sales $1,410,570 $1,393,637 1.2 4.6 Used vehicle retail sales 621,527 556,208 11.7 14.3 Used vehicle wholesale sales 87,884 90,729 (3.1) - ------ ------ Total used 709,411 646,937 9.7 12.3 Parts and service 282,954 268,121 5.5 8.2 Finance and insurance 97,650 87,660 11.4 12.6 ------ ------ Total $2,500,585 $2,396,355 4.3 7.4 GROSS MARGIN %: New vehicle retail sales 4.8 5.5 Used vehicle retail sales 6.8 8.0 Used vehicle wholesale sales (0.5) 1.2 Total used 5.9 7.0 Parts and service 54.3 53.5 Finance and insurance 100.0 100.0 Total 14.4 14.7 GROSS PROFIT: New vehicle retail sales $68,265 $76,389 (10.6) (6.4) Used vehicle retail sales 42,265 44,343 (4.7) (3.0) Used vehicle wholesale sales (474) 1,121 (142.3) (141.0) ---- ----- Total used 41,791 45,464 (8.1) (6.4) Parts and service 153,585 143,396 7.1 9.4 Finance and insurance 97,650 87,660 11.4 12.6 ------ ------ Total $361,291 $352,909 2.4 4.8 UNITS SOLD: Retail new vehicles sold 41,792 40,469 3.3 Retail used vehicles sold 29,149 25,890 12.6 Wholesale used vehicles sold 13,317 12,779 4.2 ------ ------ Total used 42,466 38,669 9.8 AVERAGE RETAIL SALES PRICE: New vehicle retail $33,752 $34,437 (2.0) 1.3 Used vehicle retail $21,322 $21,484 (0.7) 1.6 GROSS PROFIT PER UNIT SOLD: New vehicle retail sales $1,633 $1,888 (13.5) (9.4) Used vehicle retail sales 1,450 1,713 (15.4) (13.9) Used vehicle wholesale sales (36) 88 (140.9) (139.4) Total used 984 1,176 (16.3) (14.8) Finance and insurance (per retail unit) $1,376 $1,321 4.2 5.4 OTHER:(2) SG&A expenses $256,874 $254,764 0.8 3.7 SG&A as % revenues 10.3 10.6 SG&A as % gross profit 71.1 72.2 Operating margin % 3.7 3.7 Six Months Ended June 30, 2015 2014 % Change Local Currency % Change -------- REVENUES: New vehicle retail sales $2,645,460 $2,605,751 1.5 4.5 Used vehicle retail sales 1,186,263 1,086,609 9.2 11.5 Used vehicle wholesale sales 176,190 174,671 0.9 3.9 ------- ------- Total used 1,362,453 1,261,280 8.0 10.5 Parts and service 547,038 523,569 4.5 6.7 Finance and insurance 185,513 169,184 9.7 10.8 ------- ------- Total $4,740,464 $4,559,784 4.0 6.7 GROSS MARGIN %: New vehicle retail sales 5.0 5.4 Used vehicle retail sales 7.1 7.9 Used vehicle wholesale sales 1.2 2.4 Total used 6.3 7.2 Parts and service 53.7 53.1 Finance and insurance 100.0 100.0 Total 14.7 14.9 GROSS PROFIT: New vehicle retail sales $131,298 $140,124 (6.3) (2.5) Used vehicle retail sales 84,157 86,236 (2.4) (0.9) Used vehicle wholesale sales 2,136 4,187 (49.0) (46.8) ----- ----- Total used 86,293 90,423 (4.6) (3.1) Parts and service 293,894 277,835 5.8 7.8 Finance and insurance 185,513 169,184 9.7 10.8 ------- ------- Total $696,998 $677,566 2.9 5.0 UNITS SOLD: Retail new vehicles sold 78,543 76,521 2.6 Retail used vehicles sold 56,743 51,951 9.2 Wholesale used vehicles sold 25,990 24,929 4.3 ------ ------ Total used 82,733 76,880 7.6 AVERAGE RETAIL SALES PRICE: New vehicle retail $33,682 $34,053 (1.1) 1.8 Used vehicle retail $20,906 $20,916 - 2.1 GROSS PROFIT PER UNIT SOLD: New vehicle retail sales $1,672 $1,831 (8.7) (5.0) Used vehicle retail sales 1,483 1,660 (10.7) (9.3) Used vehicle wholesale sales 82 168 (51.2) (48.9) Total used 1,043 1,176 (11.3) (9.9) Finance and insurance (per retail unit) $1,371 $1,317 4.1 5.2 OTHER: (2) SG&A expenses $507,121 $496,933 2.1 4.5 SG&A as % revenues 10.7 10.9 SG&A as % gross profit 72.8 73.3 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 June 30, --------------------------- 2015 2014 % Change ---- ---- -------- SG&A RECONCILIATION: As reported $239,863 $227,506 5.4 Pre-tax adjustments: Catastrophic events (951) (1,676) Gain (loss) on real estate and dealership transactions 1,052 510 Legal settlements (1,000) (442) Adjusted SG&A (1) $238,964 $225,898 5.8 SG&A AS % REVENUES: Unadjusted 10.5 11.0 Adjusted (1) 10.4 11.0 SG&A AS % GROSS PROFIT: Unadjusted 70.1 71.8 Adjusted (1) 69.8 71.3 OPERATING MARGIN % Unadjusted 4.0 3.8 Adjusted (1), (2) 4.1 4.0 PRETAX MARGIN %: Unadjusted 3.0 1.7 Adjusted (1), (3) 3.1 3.0 SAME STORE SG&A RECONCILIATION: As reported $223,930 $215,434 3.9 Pre-tax adjustments: Catastrophic events (951) (1,676) Gain (loss) on real estate and dealership transactions (364) - Legal settlements (1,000) (442) Adjusted Same Store SG&A (1) $221,615 $213,316 3.9 SAME STORE SG&A AS % REVENUES: Unadjusted 10.6 11.0 Adjusted (1) 10.5 10.9 SAME STORE SG&A AS % GROSS PROFIT: Unadjusted 70.3 71.2 Adjusted (1) 69.6 70.5 SAME STORE OPERATING MARGIN % Unadjusted 4.0 3.9 Adjusted (1), (4) 4.1 4.1 Six Months Ended June 30, ------------------------- 2015 2014 % Change ---- ---- -------- SG&A RECONCILIATION: As reported $469,836 $443,902 5.8 Pre-tax adjustments: Catastrophic events (951) (1,676) Gain (loss) on real estate and dealership transactions 1,052 510 Legal settlements (1,000) (442) Adjusted SG&A (1) $468,937 $442,294 6.0 SG&A AS % REVENUES: Unadjusted 11.0 11.4 Adjusted (1) 10.9 11.4 SG&A AS % OF GROSS PROFIT: Unadjusted 71.5 73.2 Adjusted (1) 71.4 72.9 OPERATING MARGIN %: Unadjusted 3.9 3.7 Adjusted (1), (2) 3.9 3.8 PRETAX MARGIN %: Unadjusted 2.9 2.1 Adjusted (1), (3) 2.9 2.8 SAME STORE SG&A RECONCILIATION: As reported $438,604 $418,804 4.7 Pre-tax adjustments: Catastrophic events (951) (1,676) Gain (loss) on real estate and dealership transactions (364) - Legal settlements (1,000) (442) Adjusted Same Store SG&A (1) $436,289 $416,686 4.7 SAME STORE SG&A AS % REVENUES: Unadjusted 11.0 11.3 Adjusted (1) 10.9 11.2 SAME STORE SG&A AS % GROSS PROFIT: Unadjusted 71.8 72.1 Adjusted (1) 71.4 71.7 SAME STORE OPERATING MARGIN % Unadjusted 3.8 3.9 Adjusted (1), (4) 3.9 4.0
(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, as well as non-cash asset impairment charges of $498 for the three and six months ended June 30, 2015 and $1,721 for the three and six months ended June 30, 2014. (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 $498 for the three and six months ended June 30, 2015, and non- cash asset impairment charges of $1,721 for the three and six months ended June 30, 2014. (4) Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $498 for the three and six months ended June 30, 2015 and $1,721 for the three and six months ended June 30, 2014.
Group 1 Automotive, Inc. Reconciliation of Certain Non-GAAP Financial Measures - U.K. (Unaudited) (Dollars in thousands, except per share amounts) Three Months Ended June 30, --------------------------- 2015 2014 % Change ---- ---- -------- SG&A RECONCILIATION: As reported $26,641 $22,316 19.4 Pre-tax adjustments: Severance costs (208) - Adjusted SG&A (1) $26,433 $22,316 18.4 SG&A AS % REVENUES: Unadjusted 8.6 8.9 Adjusted (1) 8.6 8.9 SG&A AS % GROSS PROFIT: Unadjusted 78.5 75.6 Adjusted (1) 77.9 75.6 OPERATING MARGIN % Unadjusted 2.0 2.5 Adjusted (1), (2) 2.1 2.5 PRETAX MARGIN %: Unadjusted 1.6 2.2 Adjusted (1), (2) 1.6 2.2 Six Months Ended June 30, ------------------------- 2015 2014 % Change ---- ---- -------- SG&A RECONCILIATION: As reported $53,403 $44,788 19.2 Pre-tax adjustments: Severance costs (208) - Adjusted SG&A (1) $53,195 $44,788 18.8 SG&A AS % REVENUES: Unadjusted 8.8 9.0 Adjusted (1) 8.8 9.0 SG&A AS % OF GROSS PROFIT: Unadjusted 78.4 76.9 Adjusted (1) 78.1 76.9 OPERATING MARGIN %: Unadjusted 2.1 2.4 Adjusted (1), (2) 2.1 2.4 PRETAX MARGIN %: Unadjusted 1.6 2.0 Adjusted (1), (2) 1.7 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 item above.
Group 1 Automotive, Inc. Reconciliation of Certain Non-GAAP Financial Measures - Brazil (Unaudited) (Dollars in thousands, except per share amounts) Three Months Ended June 30, --------------------------- 2015 2014 % Change ---- ---- -------- SG&A RECONCILIATION: As reported $14,063 $22,148 (36.5) Pre-tax adjustments: Foreign transaction tax - (416) Adjusted SG&A (1) $14,063 $21,732 (35.3) SG&A AS % REVENUES: Unadjusted 10.7 11.1 Adjusted (1) 10.7 10.9 SG&A AS % GROSS PROFIT: Unadjusted 90.9 96.9 Adjusted (1) 90.9 95.1 OPERATING MARGIN % Unadjusted 0.3 0.1 Adjusted (1), (2) 0.7 0.3 PRETAX MARGIN %: Unadjusted (0.4) (0.9) Adjusted (1), (2) - (0.7) SAME STORE SG&A RECONCILIATION: As reported $13,569 $19,549 (30.6) Pre-tax adjustments: Foreign transaction tax - (416) Adjusted Same Store SG&A (1) $13,569 $19,133 (29.1) SAME STORE SG&A AS % REVENUES: Unadjusted 10.8 10.5 Adjusted (1) 10.8 10.3 SAME STORE SG&A AS % GROSS PROFIT: Unadjusted 90.4 94.7 Adjusted (1) 90.4 92.7 SAME STORE OPERATING MARGIN % Unadjusted 0.7 0.3 Adjusted (1), (3) 0.7 0.5 Six Months Ended June 30, ------------------------- 2015 2014 % Change ---- ---- -------- SG&A RECONCILIATION: As reported $28,798 $40,838 (29.5) Pre-tax adjustments: Foreign transaction tax - (416) Adjusted SG&A (1) $28,798 $40,422 (28.8) SG&A AS % REVENUES: Unadjusted 10.8 10.8 Adjusted (1) 10.8 10.7 SG&A AS % OF GROSS PROFIT: Unadjusted 93.8 96.1 Adjusted (1) 93.8 95.1 OPERATING MARGIN %: Unadjusted 0.1 0.1 Adjusted (1), (2) 0.3 0.3 PRETAX MARGIN %: Unadjusted (0.5) (0.8) Adjusted (1), (2) (0.3) (0.7) SAME STORE SG&A RECONCILIATION: As reported $27,519 $35,876 (23.3) Pre-tax adjustments: Foreign transaction tax - (416) Adjusted Same Store SG&A (1) $27,519 $35,460 (22.4) SAME STORE SG&A AS % REVENUES: Unadjusted 10.7 10.2 Adjusted (1) 10.7 10.1 SAME STORE SG&A AS % GROSS PROFIT: Unadjusted 91.4 93.4 Adjusted (1) 91.4 92.3 SAME STORE OPERATING MARGIN % Unadjusted 0.6 0.4 Adjusted (1), (3) 0.6 0.6
(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 of $541 for the three and six months ended June 30, 2015. (3) Excludes the impact of SG&A reconciling items above.
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, --------------------------- 2015 2014 % Change ---- ---- -------- NET INCOME RECONCILIATION: As reported $46,310 $16,862 174.6 Pre-tax adjustments: Catastrophic events (5) 593 1,039 Gain (loss) on real estate and dealership transactions (6) (601) (316) Severance costs (7) 167 - Legal settlements (8) 610 274 Foreign transaction tax (9) - 274 Non-cash asset impairment (10) 848 1,067 Loss on extinguishment of long-term debt (11) - 20,778 Adjusted net income (1) $47,927 $39,978 19.9 ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION: Adjusted net income $47,927 $39,978 19.9 Less: Adjusted earnings allocated to participating securities 1,855 1,456 27.4 Adjusted net income available to diluted common shares $46,072 $38,522 19.6 DILUTED INCOME PER COMMON SHARE RECONCILIATION: As reported $1.91 $0.62 208.1 Pre-tax adjustments: Catastrophic events 0.02 0.04 Gain (loss) on real estate and dealership transactions (0.03) (0.01) Severance costs 0.01 - Legal settlements 0.03 0.01 Foreign transaction tax - 0.01 Non-cash asset impairment 0.04 0.04 Loss on extinguishment of long-term debt - 0.76 Adjusted diluted income per share (1) $1.98 $1.47 34.7 SG&A RECONCILIATION: As reported $280,567 $271,970 3.2 Pre-tax adjustments: Catastrophic events (951) (1,676) Gain (loss) on real estate and dealership transactions 1,052 510 Severance costs (208) - Legal settlements (1,000) (442) Foreign transaction tax - (416) Adjusted SG&A (1) $279,460 $269,946 3.5 SG&A AS % REVENUES: Unadjusted 10.3 10.8 Adjusted (1) 10.2 10.7 SG&A AS % GROSS PROFIT: Unadjusted 71.7 73.7 Adjusted (1) 71.4 73.1 OPERATING MARGIN % Unadjusted 3.6 3.4 Adjusted (1), (2) 3.7 3.5 PRETAX MARGIN %: Unadjusted 2.7 1.5 Adjusted (1), (2) 2.8 2.6 SAME STORE SG&A RECONCILIATION: As reported $259,189 $257,298 0.7 Pre-tax adjustments: Catastrophic events (951) (1,676) Gain (loss) on real estate and dealership transactions (364) - Legal settlements (1,000) (442) Foreign transaction tax - (416) Adjusted Same Store SG&A (1) $256,874 $254,764 0.8 SAME STORE SG&A AS % REVENUES: Unadjusted 10.4 10.7 Adjusted (1) 10.3 10.6 SAME STORE SG&A AS % GROSS PROFIT: Unadjusted 71.7 72.9 Adjusted (1) 71.1 72.2 SAME STORE OPERATING MARGIN % Unadjusted 3.6 3.5 Adjusted (1), (4) 3.7 3.7 Six Months Ended June 30, ------------------------- 2015 2014 % Change ---- ---- -------- NET INCOME RECONCILIATION: As reported $82,124 $48,165 70.5 Pre-tax adjustments: Catastrophic events (5) 593 1,039 Gain (loss) on real estate and dealership transactions (6) (601) (316) Severance costs (7) 167 - Legal settlements (8) 610 274 Foreign transaction tax (9) - 274 Non-cash asset impairment (10) 848 1,067 Loss on extinguishment of long-term debt (11) - 20,778 Adjusted net income (1) $83,741 $71,281 17.5 ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION: Adjusted net income $83,741 $71,281 17.5 Less: Adjusted earnings allocated to participating securities 3,238 2,613 23.9 Adjusted net income available to diluted common shares $80,503 $68,668 17.2 DILUTED INCOME PER COMMON SHARE RECONCILIATION: As reported $3.38 $1.80 87.8 Pre-tax adjustments: Catastrophic events 0.02 0.04 Gain (loss) on real estate and dealership transactions (0.02) (0.01) Severance costs 0.01 - Legal settlements 0.02 0.01 Foreign transaction tax - 0.01 Non-cash asset impairment 0.03 0.04 Loss on extinguishment of long-term debt - 0.77 Adjusted diluted income per share (1) $3.44 $2.66 29.3 SG&A RECONCILIATION: As reported $552,037 $529,528 4.3 Pre-tax adjustments: Catastrophic events (951) (1,676) Gain (loss) on real estate and dealership transactions 1,052 510 Severance costs (208) - Legal settlements (1,000) (442) Foreign transaction tax - (416) Adjusted SG&A (1) $550,930 $527,504 4.4 SG&A AS % REVENUES: Unadjusted 10.7 11.1 Adjusted (1) 10.7 11.1 SG&A AS % OF GROSS PROFIT: Unadjusted 73.1 74.9 Adjusted (1) 72.9 74.6 OPERATING MARGIN %: Unadjusted 3.5 3.3 Adjusted (1), (2) 3.5 3.3 PRETAX MARGIN %: Unadjusted 2.5 1.8 Adjusted (1), (2) 2.6 2.4 SAME STORE SG&A RECONCILIATION: As reported $509,436 $499,467 2.0 Pre-tax adjustments: Catastrophic events (951) (1,676) Gain (loss) on real estate and dealership transactions (364) - Legal settlements (1,000) (442) Foreign transaction tax - (416) Adjusted Same Store SG&A (1) $507,121 $496,933 2.1 SAME STORE SG&A AS % REVENUES: Unadjusted 10.7 11.0 Adjusted (1) 10.7 10.9 SAME STORE SG&A AS % GROSS PROFIT: Unadjusted 73.1 73.7 Adjusted (1) 72.8 73.3 SAME STORE OPERATING MARGIN % Unadjusted 3.5 3.4 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 redemption of long- term debt of $23,614 for the three and six months ended June 30, 2014. (4) Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $498 for the three and six months ended June 30, 2015, and $1,721 for the three and six months ended June 30, 2014. (5) Adjustment is net of tax benefit of $359 for the three and six months ended June 30, 2015, and $637 for the three and six months ended June 30, 2014, calculated utilizing the applicable federal and state tax rates for adjustment. (6) Adjustment is net of tax provision of $452 for the three and six months ended June 30, 2015, and $194 for the three and six months ended June 30, 2014, calculated utilizing the applicable federal and state tax rates for adjustment. (7) Adjustment is net of tax benefit of $42 for the three and six months ended June 30, 2015, calculated utilizing the applicable federal and state tax rates for adjustment. (8) Adjustment is net of tax benefit of $390 for the three and six months ended June 30, 2015, and $168 for the three and six months ended June 30, 2014, calculated utilizing the applicable federal and state tax rates for adjustment. (9) 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 adjustment. (10) Adjustment is net of tax benefit of $191 for the three and six months ended June 30, 2015, and $654 and for the three and six months ended June 30, 2014, calculated utilizing the applicable federal and state tax rates for adjustment. (11) 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 adjustment.
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SOURCE Group 1 Automotive, Inc.