GROUP 1 AUTOMOTIVE, INC. HOUSTON, Oct. 27, 2015 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), an international, Fortune 500 automotive retailer, today reported record third quarter 2015 adjusted net income of $46.0 million, a 15.7 percent increase over the prior year. Adjusted diluted earnings per share of $1.91 were also a third quarter record, reflecting a 21.7 percent increase from the comparable, adjusted prior-year period.
These third quarter results exclude approximately $800 thousand of net, after-tax charges related to non-cash asset impairments. GAAP net income and diluted earnings per share were $45.3 million and $1.88, respectively. Reconciliations of non-GAAP financial measures are included in the attached financial tables.
"We are delighted to announce an all-time quarterly revenue record of $2.8 billion," said Earl J. Hesterberg, Group 1's president and chief executive officer. "Continued expense leverage in the United States and strong top-line growth in both the U.S. and U.K. delivered a record third quarter adjusted diluted EPS of $1.91. We were particularly pleased with the double-digit growth in used vehicle unit Same Store sales that all three of our markets delivered this quarter. In addition, our U.K. operations had an outstanding quarter, with revenue up 39.6 percent on a constant currency basis. Finally, while overall market conditions continue to be challenging in Brazil, with new vehicle industry volumes declining over 25 percent on a year-over-year basis, our team in Brazil grew Same Store revenue by 7.1 percent on a constant currency basis and delivered another profitable quarter," Hesterberg added.
Consolidated Results for Third Quarter 2015 (year-over-year comparable basis)
-- Total revenue increased 6.6 percent to an all-time quarterly record of
$2.8 billion; total gross profit grew 6.3 percent, to $398.4 million,
also an all-time quarterly record. On a constant currency basis,
revenues were up 10.2 percent.
-- New vehicle revenue increased 5.3 percent, reflecting 5.9 percent higher
unit sales. On a Same Store basis, new unit sales increased 19.1 percent
in the U.K., 4.4 percent in the U.S., and 1.3 percent in Brazil.
-- Used vehicle retail revenue increased 11.6 percent, primarily reflecting
12.9 percent higher used retail unit sales. On a Same Store basis, used
retail unit sales increased 10.3 percent in the U.S., 19.0 percent in
the U.K., and 15.3 percent in Brazil.
-- Parts and service gross profit increased 7.8 percent on revenue growth
of 4.0 percent (7.0 percent on a constant currency basis). U.S. Same
Store parts and service gross profit increased 9.4 percent on revenue
growth of 6.6 percent.
-- Finance and Insurance (F&I) gross profit increased 10.9 percent, as
total retail units sold increased 8.7 percent and F&I per retail unit
improved $27, to $1,352. U.S. Same Store F&I gross profit grew 10.8
percent, as F&I per retail unit improved $55, to $1,518.
-- Adjusted selling, general and administrative (SG&A) expenses as a
percent of gross profit improved 140 basis points, to 72.5 percent. On a
GAAP basis, SG&A expenses as a percent of gross profit increased 200
basis points, to 72.5 percent.
-- Adjusted operating margin improved 20 basis points, to 3.5 percent. On a
GAAP basis, operating margin improved 10 basis points, to 3.5 percent.
Segment Results for Third Quarter 2015 (year-over-year comparable basis)
-- United States:The Company's U.S. operations accounted for 83.7 percent
of total revenues and 87.4 percent of total gross profit. Total U.S.
revenues increased 7.7 percent, to $2.3 billion. This increase reflects
improvements in all areas of the business, including growth of 6.6
percent and 10.2 percent in new and total used vehicle sales,
respectively, and a 12.0 percent increase in F&I revenue, driven by the
increase in volume and improved income per retail unit of $65 to $1,515.
In addition, parts and service revenue increased 6.1 percent. The higher
revenue and expanded parts and service gross margin of 180 basis points
drove total U.S. gross profit growth of 8.2 percent.On a comparable
basis, adjusted SG&A expenses as a percent of gross margin improved 150
basis points to 71.4 percent and adjusted operating margin grew 20 basis
points to 3.8 percent.
-- United Kingdom:The Company's U.K. operations accounted for 11.7 percent
of total revenues and 9.1 percent of total gross profit. Total revenue
increased 29.8 percent (39.6 percent on a constant currency basis) to
$327.4 million, and gross profit increased 21.5 percent (30.5 percent on
a constant currency basis). The revenue increase was driven by new
vehicle retail growth of 34.2 percent, total used vehicle growth of 25.1
percent, parts and service growth of 23.1 percent, and an F&I revenue
increase of 27.0 percent.
-- Brazil: The Company's Brazil operations accounted for 4.6 percent of
total revenues and 3.5 percent of total gross profit. On a Same Store
constant currency basis, revenues increased 7.1 percent, driven by a 1.3
percent increase in new vehicle retail unit sales, a 15.3 percent
increase in used retail unit sales, and a 3.7 percent increase in parts
and service revenues.
Corporate Development
During the third quarter of 2015, the Company acquired Mercedes-Benz, Sprinter, and Smart franchises within the greater metropolitan area of Austin, Texas that are expected to generate approximately $100 million in annual revenues.
Year to date, the Company has acquired five franchises that are expected to generate approximately $340 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 443,447 shares at an average price per share of $85.69 for a total of $38.0 million. Year to date, the Company has repurchased approximately 850,000 shares at an average price of $83.67 for a total of $71.1 million. As of September 30, 2015, $28.3 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.
Third Quarter Earnings Conference Call Details
The Company's senior management will host a conference call today at 10 a.m. ET to discuss the third quarter financial results and the Company's outlook and strategy.
The conference call will be simulcast live on the Internet at www.group1auto.com, then click on 'Investor Relations' and then 'Events' or through this link: http://www.group1corp.com/events. A webcast replay will be available for 30 days.
The conference call will also be available live by dialing in 15 minutes prior to the start of the call at:
Domestic: 1-888-317-6003
International: 1-412-317-6061
Access Code: 5636460
A telephonic replay will be available following the call through November 20, 2015 at 11:59 p.m. ET by dialing:
Domestic: 1-877-344-7529
International: 1-412-317-0088
Access Code: 10074627
About Group 1 Automotive, Inc.
Group 1 owns and operates 153 automotive dealerships, 200 franchises, and 35 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 September 30,
--------------------------------
2015 2014 % Change
---- ---- --------
REVENUES:
New
vehicle
retail
sales $1,601,213 $1,521,246 5.3
Used
vehicle
retail
sales 687,637 615,924 11.6
Used
vehicle
wholesale
sales 100,483 100,347 0.1
Parts
and
service 303,557 291,816 4.0
Finance
and
insurance 107,679 97,115 10.9
------- ------
Total
revenues 2,800,569 2,626,448 6.6
COST OF SALES:
New
vehicle
retail
sales 1,521,721 1,441,016 5.6
Used
vehicle
retail
sales 641,055 571,613 12.1
Used
vehicle
wholesale
sales 102,318 101,643 0.7
Parts
and
service 137,093 137,467 (0.3)
------- -------
Total
cost
of
sales 2,402,187 2,251,739 6.7
GROSS
PROFIT 398,382 374,709 6.3
SELLING,
GENERAL
AND
ADMINISTRATIVE
EXPENSES 289,012 264,233 9.4
DEPRECIATION
AND
AMORTIZATION
EXPENSE 11,811 10,746 9.9
ASSET
IMPAIRMENTS 916 9,373 (90.2)
OPERATING
INCOME 96,643 90,357 7.0
OTHER EXPENSE:
Floorplan
interest
expense (9,685) (10,452) (7.3)
Other
interest
expense,
net (13,922) (13,246) 5.1
Loss on
extinguishment
of
long-
term
debt - (22,790) (100.0)
--- -------
INCOME
BEFORE
INCOME
TAXES 73,036 43,869 66.5
PROVISION
FOR
INCOME
TAXES (27,775) (17,707) 56.9
NET
INCOME $45,261 $26,162 73.0
======= =======
Earnings
allocated
to
participating
securities $(1,729) $(1,000) 72.9
Earnings
available
to
diluted
common
shares $43,532 $25,162 73.0
======= =======
DILUTED
EARNINGS
PER
SHARE $1.88 $1.03 82.5
Weighted
average
dilutive
common
shares
outstanding 23,137 24,432 (5.3)
Weighted
average
participating
securities 925 971 (4.7)
--- ---
Total
weighted
average
shares
outstanding 24,062 25,403 (5.3)
Nine Months Ended September 30,
-------------------------------
2015 2014 % Change
---- ---- --------
REVENUES:
New
vehicle
retail
sales $4,468,200 $4,256,146 5.0
Used
vehicle
retail
sales 1,993,124 1,743,071 14.3
Used
vehicle
wholesale
sales 302,186 284,491 6.2
Parts
and
service 888,939 844,340 5.3
Finance
and
insurance 307,454 270,901 13.5
Total
revenues 7,959,903 7,398,949 7.6
COST OF SALES:
New
vehicle
retail
sales 4,242,847 4,028,164 5.3
Used
vehicle
retail
sales 1,854,361 1,610,293 15.2
Used
vehicle
wholesale
sales 302,276 281,434 7.4
Parts
and
service 406,580 397,079 2.4
Total
cost
of
sales 6,806,064 6,316,970 7.7
GROSS
PROFIT 1,153,839 1,081,979 6.6
SELLING,
GENERAL
AND
ADMINISTRATIVE
EXPENSES 841,050 793,761 6.0
DEPRECIATION
AND
AMORTIZATION
EXPENSE 35,441 31,424 12.8
ASSET
IMPAIRMENTS 1,955 11,094 (82.4)
OPERATING
INCOME 275,393 245,700 12.1
OTHER EXPENSE:
Floorplan
interest
expense (29,046) (31,695) (8.4)
Other
interest
expense,
net (42,061) (36,326) 15.8
Loss on
extinguishment
of
long-
term
debt - (46,403) (100.0)
---
INCOME
BEFORE
INCOME
TAXES 204,286 131,276 55.6
PROVISION
FOR
INCOME
TAXES (76,901) (56,949) 35.0
NET
INCOME $127,385 $74,327 71.4
======== =======
Earnings
allocated
to
participating
securities $(4,905) $(2,769) 77.1
Earnings
available
to
diluted
common
shares $122,480 $71,558 71.2
======== =======
DILUTED
EARNINGS
PER
SHARE $5.26 $2.82 86.5
Weighted
average
dilutive
common
shares
outstanding 23,298 25,363 (8.1)
Weighted
average
participating
securities 934 973 (4.0)
--- ---
Total
weighted
average
shares
outstanding 24,232 26,336 (8.0)
Group 1 Automotive, Inc.
Consolidated Balance Sheets
(Dollars in thousands)
September 30, December 31,
2015 2014 % Change
---- ---- --------
ASSETS: (Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $21,968 $40,975 (46.4)
Contracts in transit and vehicle
receivables, net 205,636 237,448 (13.4)
Accounts and notes receivable, net 147,110 151,330 (2.8)
Inventories, net 1,634,421 1,556,705 5.0
Deferred income taxes 13,099 11,062 18.4
Prepaid expenses and other current assets 22,556 37,699 (40.2)
------ ------
Total current assets 2,044,790 2,035,219 0.5
PROPERTY AND EQUIPMENT, net 978,892 950,388 3.0
GOODWILL AND INTANGIBLE FRANCHISE RIGHTS 1,252,402 1,134,324 10.4
OTHER ASSETS 15,966 21,561 (25.9)
Total assets $4,292,050 $4,141,492 3.6
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES:
Floorplan notes payable -credit facility
and other $1,177,513 $1,143,246 3.0
Offset account related to floorplan notes
payable -credit facility (28,073) (39,616) (29.1)
Floorplan notes payable -manufacturer
affiliates 347,657 307,656 13.0
Offset account related to floorplan notes
payable -manufacturer affiliates (20,001) (22,500) (11.1)
Current maturities of long-term debt 55,959 72,630 (23.0)
Accounts payable 290,509 288,320 0.8
Accrued expenses 158,283 172,463 (8.2)
Total current liabilities 1,981,847 1,922,199 3.1
5.00% SENIOR NOTES (aggregate principal of
$550,000 at September 30, 2015 and
December 31, 2014) 540,957 540,100 0.2
REAL ESTATE CREDIT FACILITY, net of
current maturities 24,594 27,099 (9.2)
ACQUISITION LINE 138,201 69,713 98.2
OTHER REAL ESTATE RELATED AND LONG-TERM
DEBT, net of current maturities 331,194 319,984 3.5
CAPITAL LEASE OBLIGATIONS RELATED TO REAL
ESTATE, net of current maturities 49,215 51,941 (5.2)
DEFERRED INCOME TAXES 147,296 141,239 4.3
LIABILITIES FROM INTEREST RATE RISK
MANAGEMENT ACTIVITIES 39,724 25,311 56.9
OTHER LIABILITIES 69,694 65,896 5.8
STOCKHOLDERS' EQUITY:
Common stock 257 257 -
Additional paid-in capital 288,754 286,854 0.7
Retained earnings 964,703 852,057 13.2
Accumulated other comprehensive loss (145,805) (81,984) 77.8
Treasury stock (138,581) (79,174) 75.0
Total stockholders' equity 969,328 978,010 (0.9)
------- -------
Total liabilities and stockholders' equity $4,292,050 $4,141,492 3.6
========== ==========
Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2015 (%) 2014 (%) 2015 (%) 2014 (%)
-------- -------- -------- --------
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
Region Geographic Market
------ -----------------
East Massachusetts 6.0 6.6 6.1 5.9
Georgia 4.5 4.8 4.6 4.7
New Jersey 2.3 2.7 2.3 3.2
Florida 2.3 1.4 2.0 1.4
New Hampshire 2.1 2.1 2.0 2.2
Louisiana 1.5 1.6 1.6 1.7
Mississippi 1.5 1.4 1.5 1.4
South Carolina 1.4 1.6 1.4 1.5
Alabama 0.6 0.7 0.7 0.8
Maryland 0.5 0.5 0.5 0.5
New York - 1.2 - 1.7
22.7 24.6 22.7 25.0
West Texas 38.6 37.1 38.4 35.4
California 9.5 9.3 9.7 9.6
Oklahoma 7.8 8.6 7.7 8.4
Kansas 2.0 2.1 2.1 2.3
Louisiana 0.7 0.6 0.7 0.6
58.6 57.7 58.6 56.3
International United Kingdom 11.1 8.5 11.0 8.9
Brazil 7.6 9.2 7.7 9.8
100.0 100.0 100.0 100.0
===== ===== ===== =====
NEW VEHICLE UNIT SALES BRAND MIX:
---------------------------------
Toyota/Scion/Lexus 26.6 28.3 26.6 27.2
Ford/Lincoln 11.6 10.4 11.6 11.1
BMW/MINI 11.3 10.7 11.4 11.2
Honda/Acura 11.1 10.5 10.9 11.2
Nissan 8.0 8.9 8.4 9.3
Chevrolet/GMC/Buick/Cadillac 7.8 7.0 7.5 6.0
Volkswagen/Audi/Porsche 7.7 6.2 7.0 6.3
Hyundai/Kia 5.4 5.7 5.8 5.5
Chrysler/Dodge/Jeep/RAM 4.6 4.4 4.6 4.4
Mercedes-Benz/smart/Sprinter 3.8 4.2 4.1 4.2
Other 2.1 3.7 2.1 3.6
100.0 100.0 100.0 100.0
===== ===== ===== =====
Group 1 Automotive, Inc.
Additional Information - U.S.
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended September 30,
--------------------------------
2015 2014 % Change
---- ---- --------
REVENUES:
New vehicle retail sales $1,327,049 $1,245,430 6.6
Used vehicle retail sales 577,426 515,911 11.9
Used vehicle wholesale
sales 74,161 75,272 (1.5)
------ ------
Total used 651,587 591,183 10.2
Parts and service 264,979 249,724 6.1
Finance and insurance 99,952 89,268 12.0
------ ------
Total $2,343,567 $2,175,605 7.7
GROSS MARGIN %:
New vehicle retail sales 4.7 5.0
Used vehicle retail sales 7.1 7.4
Used vehicle wholesale
sales (2.5) (1.9)
Total used 6.0 6.2
Parts and service 55.4 53.6
Finance and insurance 100.0 100.0
Total 14.9 14.8
GROSS PROFIT:
New vehicle retail sales $62,428 $61,975 0.7
Used vehicle retail sales 41,053 38,251 7.3
Used vehicle wholesale
sales (1,855) (1,431) 29.6
------ ------
Total used 39,198 36,820 6.5
Parts and service 146,737 133,874 9.6
Finance and insurance 99,952 89,268 12.0
------ ------
Total $348,315 $321,937 8.2
UNITS SOLD:
Retail new vehicles sold 38,331 36,649 4.6
Retail used vehicles sold 27,664 24,917 11.0
Wholesale used vehicles
sold 11,733 11,984 (2.1)
------ ------
Total used 39,397 36,901 6.8
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $34,621 $33,983 1.9
Used vehicle retail $20,873 $20,705 0.8
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $1,629 $1,691 (3.7)
Used vehicle retail sales 1,484 1,535 (3.3)
Used vehicle wholesale
sales (158) (119) 32.8
Total used 995 998 (0.3)
Finance and insurance
(per retail unit) $1,515 $1,450 4.5
OTHER: (1)
SG&A expenses $248,771 $234,849 5.9
SG&A as % revenues 10.6 10.8
SG&A as % gross profit 71.4 72.9
Operating margin % 3.8 3.6
Pretax margin % 2.9 2.6
INTEREST EXPENSE:
Floorplan interest $(8,964) $(8,543) 4.9
Floorplan assistance 13,344 11,876 12.4
------ ------
Net floorplan income $4,380 $3,333 31.4
Other interest expense,
net $(12,737) $(12,265) 3.8
Nine Months Ended September 30,
-------------------------------
2015 2014 % Change
---- ---- --------
REVENUES:
New vehicle retail sales $3,693,777 $3,449,303 7.1
Used vehicle retail sales 1,661,932 1,440,473 15.4
Used vehicle wholesale
sales 217,032 208,392 4.1
------- -------
Total used 1,878,964 1,648,865 14.0
Parts and service 771,986 723,839 6.7
Finance and insurance 284,787 248,820 14.5
------- -------
Total $6,629,514 $6,070,827 9.2
GROSS MARGIN %:
New vehicle retail sales 4.8 5.1
Used vehicle retail sales 7.3 8.0
Used vehicle wholesale
sales (0.1) 0.9
Total used 6.5 7.1
Parts and service 54.8 53.6
Finance and insurance 100.0 100.0
Total 15.2 15.3
GROSS PROFIT:
New vehicle retail sales $175,549 $175,006 0.3
Used vehicle retail sales 121,906 114,613 6.4
Used vehicle wholesale
sales (167) 1,964 (108.5)
---- -----
Total used 121,739 116,577 4.4
Parts and service 422,912 388,042 9.0
Finance and insurance 284,787 248,820 14.5
------- -------
Total $1,004,987 $928,445 8.2
UNITS SOLD:
Retail new vehicles sold 106,651 101,281 5.3
Retail used vehicles sold 79,647 70,367 13.2
Wholesale used vehicles
sold 33,542 32,395 3.5
Total used 113,189 102,762 10.1
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $34,634 $34,057 1.7
Used vehicle retail $20,866 $20,471 1.9
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $1,646 $1,728 (4.7)
Used vehicle retail sales 1,531 1,629 (6.0)
Used vehicle wholesale
sales (5) 61 (108.2)
Total used 1,076 1,134 (5.1)
Finance and insurance
(per retail unit) $1,529 $1,450 5.4
OTHER: (1)
SG&A expenses $717,708 $677,142 6.0
SG&A as % revenues 10.8 11.2
SG&A as % gross profit 71.4 72.9
Operating margin % 3.9 3.7
Pretax margin % 2.9 2.7
INTEREST EXPENSE:
Floorplan interest $(26,440) $(25,489) 3.7
Floorplan assistance 36,503 32,969 10.7
------ ------
Net floorplan income $10,063 $7,480 34.5
Other interest expense,
net $(38,534) $(34,327) 12.3
(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 September 30,
2015 2014 % Change Local Currency
% Change
--------
REVENUES:
New vehicle retail sales $180,967 $134,859 34.2 44.0
Used vehicle retail sales 89,321 70,163 27.3 37.1
Used vehicle wholesale
sales 24,859 21,110 17.8 27.0
------ ------
Total used 114,180 91,273 25.1 34.8
Parts and service 26,193 21,272 23.1 32.7
Finance and insurance 6,091 4,797 27.0 36.6
----- -----
Total $327,431 $252,201 29.8 39.6
GROSS MARGIN %:
New vehicle retail sales 6.1 6.9
Used vehicle retail sales 5.2 5.9
Used vehicle wholesale
sales (0.3) (0.8)
Total used 4.0 4.4
Parts and service 55.6 55.2
Finance and insurance 100.0 100.0
Total 11.1 11.8
GROSS PROFIT:
New vehicle retail sales $11,060 $9,305 18.9 27.0
Used vehicle retail sales 4,631 4,165 11.2 19.5
Used vehicle wholesale
sales (73) (174) (58.0) (53.4)
--- ----
Total used 4,558 3,991 14.2 22.7
Parts and service 14,554 11,746 23.9 33.5
Finance and insurance 6,091 4,797 27.0 36.6
----- -----
Total $36,263 $29,839 21.5 30.5
UNITS SOLD:
Retail new vehicles sold 5,213 3,773 38.2
Retail used vehicles sold 3,582 2,649 35.2
Wholesale used vehicles
sold 2,791 2,183 27.9
----- -----
Total used 6,373 4,832 31.9
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $34,715 $35,743 (2.9) 4.2
Used vehicle retail $24,936 $26,487 (5.9) 1.4
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $2,122 $2,466 (13.9) (8.1)
Used vehicle retail sales 1,293 1,572 (17.7) (11.6)
Used vehicle wholesale
sales (26) (80) (67.5) (63.5)
Total used 715 826 (13.4) (6.9)
Finance and insurance
(per retail unit) $693 $747 (7.2) (0.2)
OTHER: (1)
SG&A expenses $28,124 $22,275 26.3 36.0
SG&A as % revenues 8.6 8.8
SG&A as % gross profit 77.6 74.7
Operating margin % 2.2 2.7
Pretax margin % 1.7 2.3
INTEREST EXPENSE:
Floorplan interest $(625) $(419) 49.2
Floorplan assistance 201 246 (18.3)
--- ---
Net floorplan expense $(424) $(173) 145.1
Other interest expense,
net $(780) $(442) 76.5
Nine Months Ended September 30,
-------------------------------
2015 2014 % Change Local Currency
% Change
--------
REVENUES:
New vehicle retail sales $492,424 $397,263 24.0 35.1
Used vehicle retail sales 269,629 214,900 25.5 36.7
Used vehicle wholesale
sales 78,692 62,304 26.3 37.8
------ ------
Total used 348,321 277,204 25.7 37.0
Parts and service 76,983 62,843 22.5 33.4
Finance and insurance 17,411 13,916 25.1 36.3
------ ------
Total $935,139 $751,226 24.5 35.6
GROSS MARGIN %:
New vehicle retail sales 6.3 6.8
Used vehicle retail sales 5.3 5.9
Used vehicle wholesale
sales (0.5) -
Total used 4.0 4.6
Parts and service 55.0 55.1
Finance and insurance 100.0 100.0
Total 11.2 11.7
GROSS PROFIT:
New vehicle retail sales $30,802 $26,843 14.7 25.0
Used vehicle retail sales 14,164 12,684 11.7 21.7
Used vehicle wholesale
sales (385) (4) 9,525.0 9,647.3
---- ---
Total used 13,779 12,680 8.7 18.5
Parts and service 42,345 34,655 22.2 33.1
Finance and insurance 17,411 13,916 25.1 36.3
------ ------
Total $104,337 $88,094 18.4 29.0
UNITS SOLD:
Retail new vehicles sold 14,408 11,144 29.3
Retail used vehicles sold 10,863 8,108 34.0
Wholesale used vehicles
sold 8,682 6,539 32.8
Total used 19,545 14,647 33.4
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $34,177 $35,648 (4.1) 4.5
Used vehicle retail $24,821 $26,505 (6.4) 2.0
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $2,138 $2,409 (11.2) (3.3)
Used vehicle retail sales 1,304 1,564 (16.6) (9.1)
Used vehicle wholesale
sales (44) (1) 4,300.0 7,241.4
Total used 705 866 (18.6) (11.2)
Finance and insurance
(per retail unit) $689 $723 (4.7) 3.8
OTHER:(1)
SG&A expenses $81,320 $67,063 21.3 32.1
SG&A as % revenues 8.7 8.9
SG&A as % gross profit 77.9 76.1
Operating margin % 2.1 2.5
Pretax margin % 1.7 2.1
INTEREST EXPENSE:
Floorplan interest $(1,689) $(1,188) 42.2
Floorplan assistance 584 504 15.9
--- ---
Net floorplan expense $(1,105) $(684) 61.5
Other interest expense,
net $(2,339) $(1,402) 66.8
(1)These amounts have been adjusted
to exclude the impact of certain
items to provide additional
information regarding the
performance of our operations and
improve period-to-period
comparability. Refer to our
Reconciliation of Certain Non-GAAP
Financial Measures for a description
of the aforementioned adjustments.
Group 1 Automotive, Inc.
Additional Information - Brazil
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended September 30,
2015 2014 % Change Local Currency
% Change
--------
REVENUES:
New vehicle retail sales $93,197 $140,957 (33.9) 1.8
Used vehicle retail sales 20,890 29,850 (30.0) 8.1
Used vehicle wholesale
sales 1,463 3,965 (63.1) (44.5)
----- -----
Total used 22,353 33,815 (33.9) 2.0
Parts and service 12,385 20,820 (40.5) (8.1)
Finance and insurance 1,636 3,050 (46.4) (15.7)
----- -----
Total $129,571 $198,642 (34.8) 0.5
GROSS MARGIN %:
New vehicle retail sales 6.4 6.3
Used vehicle retail sales 4.3 6.3
Used vehicle wholesale
sales 6.4 7.8
Total used 4.4 6.5
Parts and service 41.8 41.9
Finance and insurance 100.0 100.0
Total 10.7 11.5
GROSS PROFIT:
New vehicle retail sales $6,004 $8,950 (32.9) 2.7
Used vehicle retail sales 898 1,895 (52.6) (26.8)
Used vehicle wholesale
sales 93 309 (69.9) (55.1)
--- ---
Total used 991 2,204 (55.0) (30.8)
Parts and service 5,173 8,729 (40.7) (8.5)
Finance and insurance 1,636 3,050 (46.4) (15.7)
----- -----
Total $13,804 $22,933 (39.8) (7.2)
UNITS SOLD:
Retail new vehicles sold 3,582 4,072 (12.0)
Retail used vehicles sold 1,245 1,210 2.9
Wholesale used vehicles
sold 402 583 (31.0)
--- ---
Total used 1,647 1,793 (8.1)
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $26,018 $34,616 (24.8) 15.7
Used vehicle retail $16,779 $24,669 (32.0) 5.1
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $1,676 $2,198 (23.7) 16.7
Used vehicle retail sales 721 1,566 (54.0) (28.9)
Used vehicle wholesale
sales 231 530 (56.4) (34.8)
Total used 602 1,229 (51.0) (24.7)
Finance and insurance
(per retail unit) $339 $577 (41.2) (7.8)
OTHER: (1)
SG&A expenses $12,117 $19,920 (39.2) (6.3)
SG&A as % revenues 9.4 10.0
SG&A as % gross profit 87.8 86.9
Operating margin % 1.0 1.2
Pretax margin % 0.6 0.2
INTEREST EXPENSE:
Floorplan interest $(96) $(1,490) (93.6)
Floorplan assistance - - -
--- ---
Net floorplan expense $(96) $(1,490) (93.6)
Other interest expense,
net $(405) $(539) (24.9)
Nine Months Ended September 30,
-------------------------------
2015 2014 % Change Local Currency
% Change
--------
REVENUES:
New vehicle retail sales $281,999 $409,580 (31.1) (5.4)
Used vehicle retail sales 61,563 87,698 (29.8) (3.8)
Used vehicle wholesale
sales 6,462 13,795 (53.2) (37.9)
----- ------
Total used 68,025 101,493 (33.0) (8.4)
Parts and service 39,970 57,658 (30.7) (4.9)
Finance and insurance 5,256 8,165 (35.6) (11.3)
----- -----
Total $395,250 $576,896 (31.5) (6.0)
GROSS MARGIN %:
New vehicle retail sales 6.7 6.4
Used vehicle retail sales 4.4 6.2
Used vehicle wholesale
sales 7.1 8.0
Total used 4.6 6.5
Parts and service 42.8 42.6
Finance and insurance 100.0 100.0
Total 11.3 11.3
GROSS PROFIT:
New vehicle retail sales $19,002 $26,133 (27.3) (0.3)
Used vehicle retail sales 2,693 5,481 (50.9) (32.9)
Used vehicle wholesale
sales 462 1,097 (57.9) (44.6)
--- -----
Total used 3,155 6,578 (52.0) (34.8)
Parts and service 17,102 24,564 (30.4) (4.7)
Finance and insurance 5,256 8,165 (35.6) (11.3)
----- -----
Total $44,515 $65,440 (32.0) (6.8)
UNITS SOLD:
Retail new vehicles sold 10,071 12,274 (17.9)
Retail used vehicles sold 3,403 3,899 (12.7)
Wholesale used vehicles
sold 1,269 1,830 (30.7)
----- -----
Total used 4,672 5,729 (18.4)
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $28,001 $33,370 (16.1) 15.3
Used vehicle retail $18,091 $22,492 (19.6) 10.2
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $1,887 $2,129 (11.4) 21.5
Used vehicle retail sales 791 1,406 (43.7) (23.1)
Used vehicle wholesale
sales 364 599 (39.2) (20.0)
Total used 675 1,148 (41.2) (20.1)
Finance and insurance
(per retail unit) $390 $505 (22.8) 6.5
OTHER: (1)
SG&A expenses $40,915 $60,342 (32.2) (7.4)
SG&A as % revenues 10.4 10.5
SG&A as % gross profit 91.9 92.2
Operating margin % 0.6 0.6
Pretax margin % - (0.4)
INTEREST EXPENSE:
Floorplan interest $(917) $(5,018) (81.7)
Floorplan assistance - - -
--- ---
Net floorplan expense $(917) $(5,018) (81.7)
Other interest expense,
net $(1,188) $(597) 99.0
(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 September 30,
2015 2014 % Change Local Currency
% Change
--------
REVENUES:
New vehicle retail sales $1,601,213 $1,521,246 5.3 9.4
Used vehicle retail sales 687,637 615,924 11.6 14.6
Used vehicle wholesale
sales 100,483 100,347 0.1 2.8
------- -------
Total used 788,120 716,271 10.0 13.0
Parts and service 303,557 291,816 4.0 7.0
Finance and insurance 107,679 97,115 10.9 12.3
------- ------
Total $2,800,569 $2,626,448 6.6 10.2
GROSS MARGIN %:
New vehicle retail sales 5.0 5.3
Used vehicle retail sales 6.8 7.2
Used vehicle wholesale
sales (1.8) (1.3)
Total used 5.7 6.0
Parts and service 54.8 52.9
Finance and insurance 100.0 100.0
Total 14.2 14.3
GROSS PROFIT:
New vehicle retail sales $79,492 $80,230 (0.9) 4.0
Used vehicle retail sales 46,582 44,311 5.1 7.0
Used vehicle wholesale
sales (1,835) (1,296) 41.6 38.8
------ ------
Total used 44,747 43,015 4.0 6.1
Parts and service 166,464 154,349 7.8 10.4
Finance and insurance 107,679 97,115 10.9 12.3
------- ------
Total $398,382 $374,709 6.3 9.0
UNITS SOLD:
Retail new vehicles sold 47,126 44,494 5.9
Retail used vehicles sold 32,491 28,776 12.9
Wholesale used vehicles
sold 14,926 14,750 1.2
------ ------
Total used 47,417 43,526 8.9
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $33,977 $34,190 (0.6) 3.3
Used vehicle retail $21,164 $21,404 (1.1) 1.5
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $1,687 $1,803 (6.4) (1.8)
Used vehicle retail sales 1,434 1,540 (6.9) (5.2)
Used vehicle wholesale
sales (123) (88) 39.8 37.1
Total used 944 988 (4.5) (2.6)
Finance and insurance
(per retail unit) $1,352 $1,325 2.0 3.4
OTHER: (1)
SG&A expenses $289,012 $277,044 4.3 7.5
SG&A as % revenues 10.3 10.5
SG&A as % gross profit 72.5 73.9
Operating margin % 3.5 3.3
Pretax margin % 2.6 2.4
INTEREST EXPENSE:
Floorplan interest $(9,685) $(10,452) (7.3)
Floorplan assistance 13,545 12,122 11.7
------ ------
Net floorplan expense $3,860 $1,670 131.1
Other interest expense,
net $(13,922) $(13,246) 5.1
Nine Months Ended September 30,
2015 2014 % Change Local Currency
% Change
--------
REVENUES:
New vehicle retail sales $4,468,200 $4,256,146 5.0 8.5
Used vehicle retail sales 1,993,124 1,743,071 14.3 17.0
Used vehicle wholesale
sales 302,186 284,491 6.2 9.5
------- -------
Total used 2,295,310 2,027,562 13.2 16.0
Parts and service 888,939 844,340 5.3 7.9
Finance and insurance 307,454 270,901 13.5 14.8
------- -------
Total $7,959,903 $7,398,949 7.6 10.7
GROSS MARGIN %:
New vehicle retail sales 5.0 5.4
Used vehicle retail sales 7.0 7.6
Used vehicle wholesale
sales - 1.1
Total used 6.0 6.7
Parts and service 54.3 53.0
Finance and insurance 100.0 100.0
Total 14.5 14.6
GROSS PROFIT:
New vehicle retail sales $225,353 $227,982 (1.2) 3.1
Used vehicle retail sales 138,763 132,778 4.5 6.2
Used vehicle wholesale
sales (90) 3,057 (102.9) (99.2)
--- -----
Total used 138,673 135,835 2.1 3.8
Parts and service 482,359 447,261 7.8 10.1
Finance and insurance 307,454 270,901 13.5 14.8
------- -------
Total $1,153,839 $1,081,979 6.6 9.0
UNITS SOLD:
Retail new vehicles sold 131,130 124,699 5.2
Retail used vehicles sold 93,913 82,374 14.0
Wholesale used vehicles
sold 43,493 40,764 6.7
------ ------
Total used 137,406 123,138 11.6
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $34,075 $34,131 (0.2) 3.2
Used vehicle retail $21,223 $21,160 0.3 2.7
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $1,719 $1,828 (6.0) (1.9)
Used vehicle retail sales 1,478 1,612 (8.3) (6.8)
Used vehicle wholesale
sales (2) 75 (102.7) (99.2)
Total used 1,009 1,103 (8.5) (6.9)
Finance and insurance
(per retail unit) $1,366 $1,308 4.4 5.6
OTHER: (1)
SG&A expenses $839,944 $804,547 4.4 7.2
SG&A as % revenues 10.6 10.9
SG&A as % gross profit 72.8 74.4
Operating margin % 3.5 3.3
Pretax margin % 2.6 2.4
INTEREST EXPENSE:
Floorplan interest $(29,046) $(31,695) (8.4)
Floorplan assistance 37,087 33,473 10.8
------ ------
Net floorplan expense $8,041 $1,778 352.2
Other interest expense,
net $(42,061) $(36,326) 15.8
(1)These amounts have been adjusted to
exclude the impact of certain items to
provide additional information
regarding the performance of our
operations and improve period-to-
period comparability. Refer to our
Reconciliation of Certain Non-GAAP
Financial Measures for a description
of the aforementioned adjustments.
Group 1 Automotive, Inc.
Additional Information - Same Store U.S. (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended September 30,
--------------------------------
2015 2014 % Change
---- ---- --------
REVENUES:
New vehicle retail
sales $1,272,198 $1,199,736 6.0
Used vehicle retail
sales 552,722 497,814 11.0
Used vehicle wholesale
sales 66,731 72,359 (7.8)
------ ------
Total used 619,453 570,173 8.6
Parts and service 255,710 239,943 6.6
Finance and insurance 96,952 87,504 10.8
------ ------
Total $2,244,313 $2,097,356 7.0
GROSS MARGIN %:
New vehicle retail
sales 4.7 5.0
Used vehicle retail
sales 7.2 7.5
Used vehicle wholesale
sales (2.6) (1.8)
Total used 6.1 6.3
Parts and service 55.1 53.7
Finance and insurance 100.0 100.0
Total 14.9 14.9
GROSS PROFIT:
New vehicle retail
sales $59,341 $59,963 (1.0)
Used vehicle retail
sales 39,733 37,492 6.0
Used vehicle wholesale
sales (1,745) (1,305) 33.7
------ ------
Total used 37,988 36,187 5.0
Parts and service 141,020 128,879 9.4
Finance and insurance 96,952 87,504 10.8
------ ------
Total $335,301 $312,533 7.3
UNITS SOLD:
Retail new vehicles
sold 37,132 35,567 4.4
Retail used vehicles
sold 26,756 24,261 10.3
Wholesale used vehicles
sold 11,224 11,645 (3.6)
------ ------
Total used 37,980 35,906 5.8
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $34,261 $33,732 1.6
Used vehicle retail $20,658 $20,519 0.7
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $1,598 $1,686 (5.2)
Used vehicle retail
sales 1,485 1,545 (3.9)
Used vehicle wholesale
sales (155) (112) 38.4
Total used 1,000 1,008 (0.8)
Finance and insurance
(per retail unit) $1,518 $1,463 3.8
OTHER:(2)
SG&A expenses $239,585 $224,114 6.9
SG&A as % revenues 10.7 10.7
SG&A as % gross profit 71.5 71.7
Operating margin % 3.8 3.8
Nine Months Ended September 30,
-------------------------------
2015 2014 % Change
---- ---- --------
REVENUES:
New vehicle retail
sales $3,477,534 $3,292,040 5.6
Used vehicle retail
sales 1,549,938 1,384,939 11.9
Used vehicle wholesale
sales 197,083 197,854 (0.4)
------- -------
Total used 1,747,021 1,582,793 10.4
Parts and service 735,509 689,284 6.7
Finance and insurance 269,132 243,002 10.8
------- -------
Total $6,229,196 $5,807,119 7.3
GROSS MARGIN %:
New vehicle retail
sales 4.7 5.1
Used vehicle retail
sales 7.4 8.1
Used vehicle wholesale
sales 0.1 1.1
Total used 6.5 7.2
Parts and service 54.5 53.6
Finance and insurance 100.0 100.0
Total 15.2 15.4
GROSS PROFIT:
New vehicle retail
sales $161,991 $167,156 (3.1)
Used vehicle retail
sales 114,268 111,843 2.2
Used vehicle wholesale
sales 142 2,101 (93.2)
--- -----
Total used 114,410 113,944 0.4
Parts and service 400,502 369,343 8.4
Finance and insurance 269,132 243,002 10.8
------- -------
Total $946,035 $893,445 5.9
UNITS SOLD:
Retail new vehicles
sold 101,468 97,436 4.1
Retail used vehicles
sold 75,199 68,295 10.1
Wholesale used vehicles
sold 31,532 31,229 1.0
------ ------
Total used 106,731 99,524 7.2
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $34,272 $33,787 1.4
Used vehicle retail $20,611 $20,279 1.6
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $1,596 $1,716 (7.0)
Used vehicle retail
sales 1,520 1,638 (7.2)
Used vehicle wholesale
sales 5 67 (92.5)
Total used 1,072 1,145 (6.4)
Finance and insurance
(per retail unit) $1,523 $1,466 3.9
OTHER: (2)
SG&A expenses $675,873 $640,801 5.5
SG&A as % revenues 10.9 11.0
SG&A as % gross profit 71.4 71.7
Operating margin % 3.9 3.9
(1) Same store amounts include the
results for the identical months in
each period presented in the
comparison, commencing with the
first full month we owned the
dealership and, in the case of
dispositions, ending with the last
full month we owned it. Same store
results also include the activities
of our corporate office.
(2)These amounts have been adjusted
to exclude the impact of certain
items to provide additional
information regarding the
performance of our operations and
improve period-to-period
comparability. Refer to our
Reconciliation of Certain Non-GAAP
Financial Measures for a description
of the aforementioned adjustments.
Group 1 Automotive, Inc.
Additional Information - Same Store U.K. (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended September 30,
2015 2014 % Change Local Currency
% Change
--------
REVENUES:
New vehicle retail
sales $151,967 $134,858 12.7 21.0
Used vehicle retail
sales 77,395 70,164 10.3 18.8
Used vehicle wholesale
sales 19,303 21,110 (8.6) (1.4)
------ ------
Total used 96,698 91,274 5.9 14.1
Parts and service 20,728 21,272 (2.6) 5.0
Finance and insurance 5,289 4,797 10.3 18.6
----- -----
Total $274,682 $252,201 8.9 17.1
GROSS MARGIN %:
New vehicle retail
sales 6.3 6.9
Used vehicle retail
sales 5.2 5.9
Used vehicle wholesale
sales (0.2) (0.8)
Total used 4.1 4.4
Parts and service 57.4 55.2
Finance and insurance 100.0 100.0
Total 11.2 11.8
GROSS PROFIT:
New vehicle retail
sales $9,572 $9,303 2.9 9.9
Used vehicle retail
sales 4,048 4,166 (2.8) 4.5
Used vehicle wholesale
sales (48) (175) (72.6) (68.8)
--- ----
Total used 4,000 3,991 0.2 7.7
Parts and service 11,898 11,748 1.3 9.1
Finance and insurance 5,289 4,797 10.3 18.6
----- -----
Total $30,759 $29,839 3.1 10.7
UNITS SOLD:
Retail new vehicles
sold 4,494 3,773 19.1
Retail used vehicles
sold 3,153 2,649 19.0
Wholesale used vehicles
sold 2,328 2,183 6.6
----- -----
Total used 5,481 4,832 13.4
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $33,816 $35,743 (5.4) 1.5
Used vehicle retail $24,546 $26,487 (7.3) (0.2)
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $2,130 $2,466 (13.6) (7.7)
Used vehicle retail
sales 1,284 1,573 (18.4) (12.2)
Used vehicle wholesale
sales (21) (80) (73.8) (70.7)
Total used 730 826 (11.6) (5.1)
Finance and insurance
(per retail unit) $692 $747 (7.4) (0.4)
OTHER: (2)
SG&A expenses $23,100 $22,278 3.7 11.7
SG&A as % revenues 8.4 8.8
SG&A as % gross profit 75.1 74.7
Operating margin % 2.5 2.7
Nine Months Ended September 30,
2015 2014 % Change Local Currency
% Change
--------
REVENUES:
New vehicle retail
sales $410,135 $397,264 3.2 12.5
Used vehicle retail
sales 225,908 214,900 5.1 14.5
Used vehicle wholesale
sales 60,167 62,304 (3.4) 5.3
------ ------
Total used 286,075 277,204 3.2 12.4
Parts and service 60,632 62,838 (3.5) 5.1
Finance and insurance 15,043 13,915 8.1 17.8
------ ------
Total $771,885 $751,221 2.8 12.0
GROSS MARGIN %:
New vehicle retail
sales 6.3 6.8
Used vehicle retail
sales 5.3 5.9
Used vehicle wholesale
sales (0.3) -
Total used 4.1 4.6
Parts and service 56.9 55.1
Finance and insurance 100.0 100.0
Total 11.3 11.7
GROSS PROFIT:
New vehicle retail
sales $25,708 $26,844 (4.2) 4.3
Used vehicle retail
sales 11,868 12,684 (6.4) 2.0
Used vehicle wholesale
sales (169) (5) 3,280.0 4,130.0
---- ---
Total used 11,699 12,679 (7.7) 0.6
Parts and service 34,480 34,651 (0.5) 8.4
Finance and insurance 15,043 13,915 8.1 17.8
------ ------
Total $86,930 $88,089 (1.3) 7.5
UNITS SOLD:
Retail new vehicles
sold 12,338 11,144 10.7
Retail used vehicles
sold 9,302 8,108 14.7
Wholesale used vehicles
sold 7,146 6,539 9.3
----- -----
Total used 16,448 14,647 12.3
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $33,242 $35,648 (6.8) 1.6
Used vehicle retail $24,286 $26,505 (8.4) (0.2)
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $2,084 $2,409 (13.5) (5.8)
Used vehicle retail
sales 1,276 1,564 (18.4) (11.1)
Used vehicle wholesale
sales (24) (1) 2,300.0 3,770.7
Total used 711 866 (17.9) (10.4)
Finance and insurance
(per retail unit) $695 $723 (3.9) 4.8
OTHER: (2)
SG&A expenses $66,414 $67,064 (1.0) 7.9
SG&A as % revenues 8.6 8.9
SG&A as % gross profit 76.4 76.1
Operating margin % 2.4 2.5
(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.
Additional Information - Same Store Brazil (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended September 30,
--------------------------------
2015 2014 % Change Local Currency
% Change
--------
REVENUES:
New vehicle retail
sales $90,002 $129,007 (30.2) 7.4
Used vehicle retail
sales 20,342 27,499 (26.0) 14.4
Used vehicle wholesale
sales 1,463 3,159 (53.7) (30.4)
----- -----
Total used 21,805 30,658 (28.9) 9.7
Parts and service 12,193 18,163 (32.9) 3.7
Finance and insurance 1,594 2,857 (44.2) (12.4)
----- -----
Total $125,594 $180,685 (30.5) 7.1
GROSS MARGIN %:
New vehicle retail
sales 6.4 6.4
Used vehicle retail
sales 4.4 6.3
Used vehicle wholesale
sales 6.4 7.3
Total used 4.5 6.4
Parts and service 41.7 43.1
Finance and insurance 100.0 100.0
Total 10.7 11.6
GROSS PROFIT:
New vehicle retail
sales $5,728 $8,257 (30.6) 6.2
Used vehicle retail
sales 889 1,721 (48.3) (20.0)
Used vehicle wholesale
sales 93 231 (59.7) (39.8)
--- ---
Total used 982 1,952 (49.7) (22.4)
Parts and service 5,079 7,825 (35.1) 0.2
Finance and insurance 1,594 2,857 (44.2) (12.4)
----- -----
Total $13,383 $20,891 (35.9) (1.3)
UNITS SOLD:
Retail new vehicles
sold 3,511 3,465 1.3
Retail used vehicles
sold 1,228 1,065 15.3
Wholesale used vehicles
sold 401 454 (11.7)
--- ---
Total used 1,629 1,519 7.2
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $25,634 $37,231 (31.1) 6.0
Used vehicle retail $16,565 $25,821 (35.8) (0.8)
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $1,631 $2,383 (31.6) 4.8
Used vehicle retail
sales 724 1,616 (55.2) (30.6)
Used vehicle wholesale
sales 232 509 (54.4) (31.9)
Total used 603 1,285 (53.1) (27.6)
Finance and insurance
(per retail unit) $336 $631 (46.8) (16.2)
OTHER:(2)
SG&A expenses $11,911 $17,277 (31.1) 6.3
SG&A as % revenues 9.5 9.6
SG&A as % gross profit 89.0 82.7
Operating margin % 0.9 1.8
Nine Months Ended September 30,
2015 2014 % Change Local Currency
% Change
--------
REVENUES:
New vehicle retail
sales $271,960 $380,047 (28.4) (1.7)
Used vehicle retail
sales 60,876 82,247 (26.0) 1.4
Used vehicle wholesale
sales 6,437 11,142 (42.2) (23.4)
----- ------
Total used 67,313 93,389 (27.9) (1.6)
Parts and service 39,527 50,825 (22.2) 6.7
Finance and insurance 5,172 7,425 (30.3) (4.1)
----- -----
Total $383,972 $531,686 (27.8) (0.9)
GROSS MARGIN %:
New vehicle retail
sales 6.7 6.2
Used vehicle retail
sales 4.4 6.2
Used vehicle wholesale
sales 7.2 7.6
Total used 4.7 6.4
Parts and service 42.8 43.9
Finance and insurance 100.0 100.0
Total 11.3 11.2
GROSS PROFIT:
New vehicle retail
sales $18,242 $23,647 (22.9) 5.7
Used vehicle retail
sales 2,691 5,088 (47.1) (27.8)
Used vehicle wholesale
sales 463 843 (45.1) (27.8)
--- ---
Total used 3,154 5,931 (46.8) (27.8)
Parts and service 16,908 22,292 (24.2) 3.7
Finance and insurance 5,172 7,425 (30.3) (4.1)
----- -----
Total $43,476 $59,295 (26.7) 0.4
UNITS SOLD:
Retail new vehicles
sold 9,874 10,746 (8.1)
Retail used vehicles
sold 3,379 3,523 (4.1)
Wholesale used vehicles
sold 1,265 1,443 (12.3)
----- -----
Total used 4,644 4,966 (6.5)
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $27,543 $35,366 (22.1) 7.0
Used vehicle retail $18,016 $23,346 (22.8) 5.7
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $1,847 $2,201 (16.1) 15.1
Used vehicle retail
sales 796 1,444 (44.9) (24.7)
Used vehicle wholesale
sales 366 584 (37.3) (17.6)
Total used 679 1,194 (43.1) (22.8)
Finance and insurance
(per retail unit) $390 $520 (25.0) 3.2
OTHER: (2)
SG&A expenses $39,429 $52,736 (25.2) 2.3
SG&A as % revenues 10.3 9.9
SG&A as % gross profit 90.7 88.9
Operating margin % 0.7 1.0
(1) Same store amounts include the
results for the identical months in
each period presented in the
comparison, commencing with the
first full month we owned the
dealership and, in the case of
dispositions, ending with the last
full month we owned it. Same store
results also include the activities
of our corporate office.
(2)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 September 30,
2015 2014 % Change Local Currency
% Change
--------
REVENUES:
New vehicle retail
sales $1,514,167 $1,463,601 3.5 7.5
Used vehicle retail
sales 650,459 595,477 9.2 12.1
Used vehicle wholesale
sales 87,497 96,628 (9.4) (7.1)
------ ------
Total used 737,956 692,105 6.6 9.4
Parts and service 288,631 279,378 3.3 6.3
Finance and insurance 103,835 95,158 9.1 10.5
------- ------
Total $2,644,589 $2,530,242 4.5 8.0
GROSS MARGIN %:
New vehicle retail
sales 4.9 5.3
Used vehicle retail
sales 6.9 7.3
Used vehicle wholesale
sales (1.9) (1.3)
Total used 5.8 6.1
Parts and service 54.7 53.1
Finance and insurance 100.0 100.0
Total 14.3 14.4
GROSS PROFIT:
New vehicle retail
sales $74,641 $77,523 (3.7) 1.0
Used vehicle retail
sales 44,670 43,379 3.0 4.8
Used vehicle wholesale
sales (1,700) (1,249) 36.1 32.9
------ ------
Total used 42,970 42,130 2.0 4.0
Parts and service 157,997 148,452 6.4 8.9
Finance and insurance 103,835 95,158 9.1 10.5
------- ------
Total $379,443 $363,263 4.5 7.1
UNITS SOLD:
Retail new vehicles
sold 45,137 42,805 5.4
Retail used vehicles
sold 31,137 27,975 11.3
Wholesale used vehicles
sold 13,953 14,282 (2.3)
------ ------
Total used 45,090 42,257 6.7
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $33,546 $34,192 (1.9) 2.0
Used vehicle retail $20,890 $21,286 (1.9) 0.7
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $1,654 $1,811 (8.7) (4.2)
Used vehicle retail
sales 1,435 1,551 (7.5) (5.8)
Used vehicle wholesale
sales (122) (87) 40.2 36.1
Total used 953 997 (4.4) (2.6)
Finance and insurance
(per retail unit) $1,361 $1,344 1.3 2.5
OTHER:(2)
SG&A expenses $274,596 $263,669 4.1 7.3
SG&A as % revenues 10.4 10.4
SG&A as % gross profit 72.4 72.6
Operating margin % 3.5 3.5
Nine Months Ended September 30,
2015 2014 % Change Local Currency
% Change
--------
REVENUES:
New vehicle retail
sales $4,159,629 $4,069,351 2.2 5.6
Used vehicle retail
sales 1,836,722 1,682,086 9.2 11.7
Used vehicle wholesale
sales 263,687 271,300 (2.8) -
------- -------
Total used 2,100,409 1,953,386 7.5 10.1
Parts and service 835,668 802,947 4.1 6.6
Finance and insurance 289,347 264,342 9.5 10.7
------- -------
Total $7,385,053 $7,090,026 4.2 7.1
GROSS MARGIN %:
New vehicle retail
sales 5.0 5.3
Used vehicle retail
sales 7.0 7.7
Used vehicle wholesale
sales 0.2 1.1
Total used 6.2 6.8
Parts and service 54.1 53.1
Finance and insurance 100.0 100.0
Total 14.6 14.7
GROSS PROFIT:
New vehicle retail
sales $205,941 $217,647 (5.4) (1.2)
Used vehicle retail
sales 128,827 129,615 (0.6) 1.0
Used vehicle wholesale
sales 436 2,939 (85.2) (80.6)
--- -----
Total used 129,263 132,554 (2.5) (0.8)
Parts and service 451,890 426,286 6.0 8.2
Finance and insurance 289,347 264,342 9.5 10.7
------- -------
Total $1,076,441 $1,040,829 3.4 5.7
UNITS SOLD:
Retail new vehicles
sold 123,680 119,326 3.6
Retail used vehicles
sold 87,880 79,926 10.0
Wholesale used vehicles
sold 39,943 39,211 1.9
------ ------
Total used 127,823 119,137 7.3
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $33,632 $34,103 (1.4) 1.9
Used vehicle retail $20,900 $21,046 (0.7) 1.6
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $1,665 $1,824 (8.7) (4.7)
Used vehicle retail
sales 1,466 1,622 (9.6) (8.2)
Used vehicle wholesale
sales 11 75 (85.3) (81.0)
Total used 1,011 1,113 (9.2) (7.6)
Finance and insurance
(per retail unit) $1,368 $1,327 3.1 4.3
OTHER: (2)
SG&A expenses $781,716 $760,602 2.8 5.5
SG&A as % revenues 10.6 10.7
SG&A as % gross profit 72.6 73.1
Operating margin % 3.5 3.5
(1) Same store amounts include the
results for the identical months in
each period presented in the
comparison, commencing with the
first full month we owned the
dealership and, in the case of
dispositions, ending with the last
full month we owned it. Same store
results also include the activities
of our corporate office.
(2)These amounts have been adjusted
to exclude the impact of certain
items to provide additional
information regarding the
performance of our operations and
improve period-to-period
comparability. Refer to our
Reconciliation of Certain Non-GAAP
Financial Measures for a description
of the aforementioned adjustments.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - U.S.
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended September 30,
--------------------------------
2015 2014 % Change
---- ---- --------
SG&A RECONCILIATION:
As reported $248,771 $221,645 12.2
Pre-tax adjustments:
Catastrophic events - (1,099)
Gain (loss) on real estate and
dealership transactions - 14,303
Adjusted SG&A (1) $248,771 $234,849 5.9
SG&A AS % REVENUES:
Unadjusted 10.6 10.2
Adjusted (1) 10.6 10.8
SG&A AS % GROSS PROFIT:
Unadjusted 71.4 68.8
Adjusted (1) 71.4 72.9
OPERATING MARGIN %
Unadjusted 3.8 4.0
Adjusted (1), (2) 3.8 3.6
PRETAX MARGIN %:
Unadjusted 2.9 2.0
Adjusted (1), (3) 2.9 2.6
SAME STORE SG&A RECONCILIATION:
As reported $239,585 $225,236 6.4
Pre-tax adjustments:
Catastrophic events - (1,099)
Gain (loss) on real estate and
dealership transactions - (23)
Adjusted Same Store SG&A (1) $239,585 $224,114 6.9
SAME STORE SG&A AS % REVENUES:
Unadjusted 10.7 10.7
Adjusted (1) 10.7 10.7
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 71.5 72.1
Adjusted (1) 71.5 71.7
SAME STORE OPERATING MARGIN %
Unadjusted 3.8 3.7
Adjusted (1), (4) 3.8 3.8
Nine Months Ended September 30,
-------------------------------
2015 2014 % Change
---- ---- --------
SG&A RECONCILIATION:
As reported $718,607 $665,547 8.0
Pre-tax adjustments:
Catastrophic events (951) (2,775)
Gain (loss) on real estate and
dealership transactions 1,052 14,812
Legal settlements (1,000) (442)
Adjusted SG&A (1) $717,708 $677,142 6.0
SG&A AS % REVENUES:
Unadjusted 10.8 11.0
Adjusted (1) 10.8 11.2
SG&A AS % OF GROSS PROFIT:
Unadjusted 71.5 71.7
Adjusted (1) 71.4 72.9
OPERATING MARGIN %:
Unadjusted 3.8 3.8
Adjusted (1), (2) 3.9 3.7
PRETAX MARGIN %:
Unadjusted 2.9 2.0
Adjusted (1), (3) 2.9 2.7
SAME STORE SG&A RECONCILIATION:
As reported $678,188 $644,041 5.3
Pre-tax adjustments:
Catastrophic events (951) (2,775)
Gain (loss) on real estate and
dealership transactions (364) (23)
Legal settlements (1,000) (442)
Adjusted Same Store SG&A (1) $675,873 $640,801 5.5
SAME STORE SG&A AS % REVENUES:
Unadjusted 10.9 11.1
Adjusted (1) 10.9 11.0
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 71.7 72.1
Adjusted (1) 71.4 71.7
SAME STORE OPERATING MARGIN %
Unadjusted 3.8 3.8
Adjusted (1), (4) 3.9 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
$288 and $786
for the three
and nine
months ended
September 30,
2015,
respectively,
and $4,252
and $5,973
for the three
and nine
months ended
September 30,
2014,
respectively.
(3) Excludes the
impact of
SG&A
reconciling
items above,
loss on
redemption of
long-term
debt of
$22,790 and
$46,403 for
the three and
nine months
ended
September 30,
2014,
respectively,
as well as
non-cash
asset
impairment
charges of
$288 and $786
for the three
and nine
months ended
September 30,
2015 and
$4,252 and
$5,973 for
the three and
nine months
ended
September 30,
2014,
respectively.
(4) Excludes the
impact of
Same Store
SG&A
reconciling
items above,
as well as
non-cash
asset
impairment
charges of
$288 and $786
for the three
and nine
months ended
September 30,
2015,
respectively,
and $293 and
$2,014 for
the three and
nine months
ended
September 30,
2014,
respectively.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - U.K.
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended September 30,
--------------------------------
2015 2014 % Change
---- ---- --------
OPERATING MARGIN %
Unadjusted 2.1 2.7
Adjusted (1), (3) 2.2 2.7
PRETAX MARGIN %:
Unadjusted 1.6 2.3
Adjusted (1), (3) 1.7 2.3
SAME STORE OPERATING MARGIN %
Unadjusted 2.4 2.7
Adjusted (1), (3) 2.5 2.7
Nine Months Ended September 30,
-------------------------------
2015 2014 % Change
---- ---- --------
SG&A RECONCILIATION:
As reported $81,528 $67,063 21.6
Pre-tax adjustments:
Severance costs (208) -
Adjusted SG&A (1) $81,320 $67,063 21.3
SG&A AS % REVENUES:
Unadjusted 8.7 8.9
Adjusted (1) 8.7 8.9
SG&A AS % OF GROSS PROFIT:
Unadjusted 78.1 76.1
Adjusted (1) 77.9 76.1
OPERATING MARGIN %:
Unadjusted 2.1 2.5
Adjusted (1), (2) 2.1 2.5
PRETAX MARGIN %:
Unadjusted 1.6 2.1
Adjusted (1), (2) 1.7 2.1
SAME STORE OPERATING MARGIN %
Unadjusted 2.3 2.5
Adjusted (1), (3) 2.4 2.5
(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
item above,
as well as
non-cash
asset
impairment
charges of
$333 for the
three and
nine months
ended
September 30,
2015.
(3) Excludes the
impact of
non-cash
asset
impairment
charges of
$333 for the
three and
nine months
ended
September 30,
2015.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - Brazil
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended September 30,
--------------------------------
2015 2014 % Change
---- ---- --------
SG&A RECONCILIATION:
As reported $12,117 $20,313 (40.3)
Pre-tax adjustments:
Severance costs - (393)
Adjusted SG&A (1) $12,117 $19,920 (39.2)
SG&A AS % REVENUES:
Unadjusted 9.4 10.2
Adjusted (1) 9.4 10.0
SG&A AS % GROSS PROFIT:
Unadjusted 87.8 88.6
Adjusted (1) 87.8 86.9
OPERATING MARGIN %
Unadjusted 0.8 (1.6)
Adjusted (1), (2) 1.0 1.2
PRETAX MARGIN %:
Unadjusted 0.4 (2.6)
Adjusted (1), (2) 0.6 0.2
SAME STORE SG&A RECONCILIATION:
As reported $11,911 $17,566 (32.2)
Pre-tax adjustments:
Severance costs - (289)
Adjusted Same Store SG&A (1) $11,911 $17,277 (31.1)
SAME STORE SG&A AS % REVENUES:
Unadjusted 9.5 9.7
Adjusted (1) 9.5 9.6
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 89.0 84.1
Adjusted (1) 89.0 82.7
SAME STORE OPERATING MARGIN %
Unadjusted 0.7 1.6
Adjusted (1), (3) 0.9 1.8
Nine Months Ended September 30,
-------------------------------
2015 2014 % Change
---- ---- --------
SG&A RECONCILIATION:
As reported $40,915 $61,151 (33.1)
Pre-tax adjustments:
Severance costs - (393)
Foreign transaction tax - (416)
Adjusted SG&A (1) $40,915 $60,342 (32.2)
SG&A AS % REVENUES:
Unadjusted 10.4 10.6
Adjusted (1) 10.4 10.5
SG&A AS % OF GROSS PROFIT:
Unadjusted 91.9 93.4
Adjusted (1) 91.9 92.2
OPERATING MARGIN %:
Unadjusted 0.3 (0.4)
Adjusted (1), (2) 0.6 0.6
PRETAX MARGIN %:
Unadjusted (0.2) (1.4)
Adjusted (1), (2) - (0.4)
SAME STORE SG&A RECONCILIATION:
As reported $39,429 $53,441 (26.2)
Pre-tax adjustments:
Severance costs - (289)
Foreign transaction tax - (416)
Adjusted Same Store SG&A (1) $39,429 $52,736 (25.2)
SAME STORE SG&A AS % REVENUES:
Unadjusted 10.3 10.1
Adjusted (1) 10.3 9.9
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 90.7 90.1
Adjusted (1) 90.7 88.9
SAME STORE OPERATING MARGIN %
Unadjusted 0.6 0.8
Adjusted (1), (3) 0.7 1.0
(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
$298 and $839
for the three
and nine
months ended
September 30,
2015,
respectively,
and $5,121
for the three
and nine
months ended
September 30,
2014.
(3) Excludes the
impact of
Same Store
SG&A
reconciling
items above,
as well as
non-cash
asset
impairment
charges of
$298 for the
three and
nine months
ended
September 30,
2015.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - CONSOLIDATED
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended September 30,
--------------------------------
2015 2014 % Change
---- ---- --------
NET INCOME RECONCILIATION:
As reported $45,261 $26,162 73.0
Pre-tax adjustments:
Catastrophic events (5) - 671
(Gain) loss on real estate and dealership
transactions (6) - (8,572)
Severance costs (7) - 388
Non-cash asset impairment (10) 776 6,559
Loss on extinguishment of long-term debt (11) - 17,934
Non-deductible goodwill - (3,358)
Adjusted net income (1) $46,037 $39,784 15.7
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED
COMMON SHARES RECONCILIATION:
Adjusted net income (1) $46,037 $39,784 15.7
Less: Adjusted earnings allocated to
participating securities 1,759 1,520 15.7
Adjusted net income available to diluted
common shares (1) $44,278 $38,264 15.7
DILUTED INCOME PER COMMON SHARE RECONCILIATION:
As reported $1.88 $1.03 82.5
Pre-tax adjustments:
Catastrophic events - 0.03
Gain (loss) on real estate and dealership
transactions - (0.34)
Severance costs - 0.01
Non-cash asset impairment 0.03 0.26
Loss on extinguishment of long-term debt - 0.71
Non-deductible goodwill - (0.13)
Adjusted diluted income per share (1) $1.91 $1.57 21.7
SG&A RECONCILIATION:
As reported $289,012 $264,233 9.4
Pre-tax adjustments:
Catastrophic events - (1,099)
Gain (loss) on real estate and dealership
transactions - 14,303
Severance costs - (393)
Adjusted SG&A (1) $289,012 $277,044 4.3
SG&A AS % REVENUES:
Unadjusted 10.3 10.1
Adjusted (1) 10.3 10.5
SG&A AS % GROSS PROFIT:
Unadjusted 72.5 70.5
Adjusted (1) 72.5 73.9
OPERATING MARGIN %
Unadjusted 3.5 3.4
Adjusted (1), (2) 3.5 3.3
PRETAX MARGIN %:
Unadjusted 2.6 1.7
Adjusted (1), (3) 2.6 2.4
SAME STORE SG&A RECONCILIATION:
As reported $274,596 $265,080 3.6
Pre-tax adjustments:
Catastrophic events - (1,099)
Gain (loss) on real estate and dealership
transactions - (23)
Severance costs - (289)
Adjusted Same Store SG&A (1) $274,596 $263,669 4.1
SAME STORE SG&A AS % REVENUES:
Unadjusted 10.4 10.5
Adjusted (1) 10.4 10.4
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 72.4 73.0
Adjusted (1) 72.4 72.6
SAME STORE OPERATING MARGIN %
Unadjusted 3.5 3.5
Adjusted (1), (4) 3.5 3.5
Nine Months Ended September 30,
-------------------------------
2015 2014 % Change
---- ---- --------
NET INCOME RECONCILIATION:
As reported $127,385 $74,327 71.4
Pre-tax adjustments:
Catastrophic events (5) 593 1,710
(Gain) loss on real estate and dealership
transactions (6) (601) (8,887)
Severance costs (7) 167 388
Legal settlements (8) 610 274
Foreign transaction tax (9) - 274
Non-cash asset impairment (10) 1,624 7,626
Loss on extinguishment of long-term debt (11) - 38,711
Non-deductible goodwill - (3,358)
Adjusted net income (1) $129,778 $111,065 16.8
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED
COMMON SHARES RECONCILIATION:
Adjusted net income (1) $129,778 $111,065 16.8
Less: Adjusted earnings allocated to
participating securities 4,997 4,126 21.1
Adjusted net income available to diluted
common shares (1) $124,781 $106,939 16.7
DILUTED INCOME PER COMMON SHARE RECONCILIATION:
As reported $5.26 $2.82 86.5
Pre-tax adjustments:
Catastrophic events 0.02 0.07
Gain (loss) on real estate and dealership
transactions (0.02) (0.33)
Severance costs 0.01 0.01
Legal settlements 0.02 0.01
Foreign transaction tax - 0.01
Non-cash asset impairment 0.07 0.29
Loss on extinguishment of long-term debt - 1.47
Non-deductible goodwill - (0.13)
Adjusted diluted income per share (1) $5.36 $4.22 27.0
SG&A RECONCILIATION:
As reported $841,050 $793,761 6.0
Pre-tax adjustments:
Catastrophic events (951) (2,775)
Gain (loss) on real estate and dealership
transactions 1,053 14,812
Severance costs (208) (393)
Legal settlements (1,000) (442)
Foreign transaction tax - (416)
Adjusted SG&A (1) $839,944 $804,547 4.4
SG&A AS % REVENUES:
Unadjusted 10.6 10.7
Adjusted (1) 10.6 10.9
SG&A AS % OF GROSS PROFIT:
Unadjusted 72.9 73.4
Adjusted (1) 72.8 74.4
OPERATING MARGIN %:
Unadjusted 3.5 3.3
Adjusted (1), (2) 3.5 3.3
PRETAX MARGIN %:
Unadjusted 2.6 1.8
Adjusted (1), (3) 2.6 2.4
SAME STORE SG&A RECONCILIATION:
As reported $784,031 $764,546 2.5
Pre-tax adjustments:
Catastrophic events (951) (2,774)
Gain (loss) on real estate and dealership
transactions (364) (23)
Severance costs - (289)
Legal settlements (1,000) (442)
Foreign transaction tax - (416)
Adjusted Same Store SG&A (1) $781,716 $760,602 2.8
SAME STORE SG&A AS % REVENUES:
Unadjusted 10.6 10.8
Adjusted (1) 10.6 10.7
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 72.8 73.5
Adjusted (1) 72.6 73.1
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
$22,790 and
$46,403 for
the three and
nine months
ended
September 30,
2014,
respectively.
(4) Excludes the
impact of
Same Store
SG&A
reconciling
items above,
as well as
non-cash
asset
impairment
charges of
$916 and
$1,418 for
the three and
nine months
ended
September 30,
2015,
respectively,
and $293 and
$2,014 for
the three and
nine months
ended
September 30,
2014,
respectively.
(5) Adjustment is
net of tax
benefit of
$359 for the
nine months
ended
September 30,
2015, and
$428 and
$1,065 for
the three and
nine months
ended
September 30,
2014,
respectively,
calculated
utilizing the
applicable
federal and
state tax
rates for
adjustment.
(6) Adjustment is
net of tax
provision of
$452 for the
nine months
ended
September 30,
2015, and
$5,731 and
$5,925 for
the three and
nine months
ended
September 30,
2014,
respectively,
calculated
utilizing the
applicable
federal and
state tax
rates for
adjustment.
(7) Adjustment is
net of tax
benefit of
$42 for the
nine months
ended
September 30,
2015, and $5
for the three
and nine
months ended
September 30,
2014,
calculated
utilizing the
applicable
federal and
state tax
rates for
adjustment.
(8) Adjustment is
net of tax
benefit of
$390 for the
nine months
ended
September 30,
2015, and
$168 for the
nine months
ended
September 30,
2014,
calculated
utilizing the
applicable
federal and
state tax
rates for
adjustment.
(9) Adjustment is
net of tax
benefit of
$141 for the
nine months
ended
September 30,
2014,
calculated
utilizing the
applicable
federal and
state tax
rates for
adjustment.
(10) Adjustment is
net of tax
benefit of
$143 and $334
for the three
and nine
months ended
September 30,
2015,
respectively,
and $2,815
and $3,469
for the three
and nine
months ended
September 30,
2014,
respectively,
calculated
utilizing the
applicable
federal and
state tax
rates for
adjustment.
(11) Adjustment is
net of tax
benefit of
$4,856 and
$7,692 for
the three and
nine months
ended
September 30,
2014,
respectively,
calculated
utilizing the
applicable
federal and
state tax
rates for
adjustment.
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SOURCE Group 1 Automotive, Inc.
