GROUP 1 AUTOMOTIVE, INC. HOUSTON, April 28, 2017 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), ("Group 1" or the "Company"), an international, Fortune 500 automotive retailer, today reported 2017 first quarter net income of $33.9 million, diluted earnings per common share of $1.58, adjusted net income (a non-GAAP measure) of $32.8 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $1.53.
First quarter 2017 adjusted net income and diluted earnings per share exclude a non-core benefit of approximately $1.1 million after-tax, or $0.05 per share, related to a settlement with an Original Equipment Manufacturer (OEM). Reconciliations of non-GAAP financial measures are included in the attached financial tables.
"Although we had another strong performance in our U.S. new vehicle margins, a record quarter in the U.K., and a profitable quarter in Brazil, these factors were not enough to offset extreme weakness in vehicle sales in our energy price impacted markets. Combined new and used sales dropped 11 percent in Texas and Oklahoma, with the new vehicle industry declining 16 percent for the quarter in our largest single market of Houston. With a decrease of 13 percent in new vehicle sales at our Houston stores, we outperformed the local market, but we still need to make further adjustments to our businesses in the energy price impacted markets," said Earl J. Hesterberg, Group 1's president and chief executive officer. "As for our overseas markets, our U.K. operations had another record quarter, with revenue growth across all business segments and gross profit up double digits on a constant currency basis. And finally, in the face of continued pressure on Brazil's new vehicle industry during the quarter, we are also delighted to have achieved profitability in our Brazil Region by growing gross profit 13 percent on a Same Store constant currency basis reflecting tremendous performance in used vehicles, parts and service, and F&I, and by significantly leveraging our costs."
Consolidated Results for First Quarter 2017 (year-over-year comparable basis)
For ease of comparison, we have included constant currency metrics (a non-GAAP measure) both below (shown in parenthesis) and in the financial tables that follow:
-- Total revenue decreased 3.4 percent ((1.5) percent) to $2.5 billion;
total gross profit decreased 1.4 percent ((0.1) percent) to $383.5
million.
-- New vehicle revenues decreased 5.2 percent ((3.1) percent) on a 6.1
percent decrease in unit sales. New vehicle gross profit decreased 3.5
percent ((1.3) percent) to $69.2 million, as improved new vehicle
margins partially offset the volume decline. U.S. Same Store new vehicle
margins were up 5.1 percent or $91 per unit to $1,862.
-- Retail used vehicle revenues decreased 4.0 percent ((2.0) percent) on a
3.7 percent decrease in unit sales. Retail used vehicle gross profit
decreased 8.5 percent ((7.5) percent) to $45.0 million reflecting the
impact of lower margins, down $74 per unit, in combination with the
volume decline.
-- Parts and service gross profit increased 3.5 percent (4.9 percent) on
revenue growth of 3.6 percent (4.7 percent). Same Store parts and
service gross profit increased 3.4 percent (4.4 percent) on revenue
growth of 3.8 percent (4.6 percent).
-- Same Store Finance and Insurance (F&I) gross profit per retail unit
(PRU) increased 2.0 percent (2.8 percent) to $1,410 per retail unit.
U.S. F&I gross profit per unit increased $73 to a first quarter record
of $1,637.
-- Selling, General and Administrative (SG&A) expenses as a percent of
gross profit increased 10 basis points to 75.6 percent. Adjusted SG&A
expenses as a percent of gross profit (a non-GAAP measure) increased 120
basis points to 76.0 percent.
Segment Results for First Quarter 2017 (year-over-year comparable basis)
-- United States:The Company's U.S. operations accounted for 78.1 percent
of total revenues and 83.6 percent of total gross profit. U.S. revenues
were $2.0 billion, a decrease of 5.5 percent. The revenue decrease
reflects 10.7 percent and 7.1 percent decreases in retail new and used
vehicle unit sales, respectively. The vast majority of the sales decline
came from the Company's oil-impacted markets of Texas and Oklahoma.
Gross profit decreased 3.6 percent.
-- United Kingdom:The Company's U.K. operations accounted for 17.9 percent
of total revenues and 13.1 percent of total gross profit. Despite a 14
percent weakening in the pound, total revenue grew 4.3 percent (20.5
percent) to $450.3 million, and gross profit increased 7.6 percent (24.3
percent). Revenue growth was primarily driven by 22.6 percent and 22.1
percent increases in new and used vehicle retail unit sales,
respectively.
-- Brazil:The Company's Brazilian operations accounted for 4.0 percent of
total revenues and 3.3 percent of total gross profit. Despite continued
weakness in Brazil's new vehicle industry volumes, which contributed to
decreased Same Store total revenue of 13.4 percent on a constant
currency basis, gross profit increased 13.0 percent, reflecting strong
growth in Same Store total used vehicles gross profit (up almost 180
percent), and a 17.6 percent increase in Same Store parts and sales
gross profit. In addition, Same Store F&I gross profit PRU increased
64.5 percent on a constant currency basis. The increase in gross profit,
coupled with significantly improved cost leverage, allowed the region to
achieve profitability in the quarter.
Corporate Development
In January 2017, as previously announced, the Company acquired a BMW motorcycle franchise in Brazil, which is expected to generate approximately $5 million in annual revenues. In March 2017, the Company opened Think Ford Reading, an add point in the U.K., which is contiguous to our existing Ford market. This expands the Company's U.K. Ford network to seven dealerships. In April 2017, the Company also opened Cedar Park Nissan, an add point in Austin, Texas. This addition increases Group 1's U.S. Nissan network to nine dealerships. These add points are expected to generate approximately $60 million in annual revenues.
In February 2017, as previously announced, the Company disposed of two Nissan dealerships in Brazil. These stores generated approximately $25 million in trailing-twelve-month revenues.
Share Repurchase Authorization
As of April 28, 2017, $22.4 million remains available under the Company's prior common stock share repurchase authorization. Purchases may be made from time to time in the open market or in privately negotiated transactions, based on market conditions, legal requirements and other corporate considerations and subject to Board approval and covenant restrictions.
First Quarter 2017 Earnings Conference Call Details
Group 1's senior management will host a conference call today at 9 a.m. ET to discuss the first quarter financial results and the Company's outlook and strategy.
The conference call will be simulcast live on the Internet at www.group1auto.com. Click on 'Investor Relations' and then 'Events' or through this link: http://www.group1corp.com/events. A webcast replay will be available for 30 days.
The conference call will also be available live by dialing in 15 minutes prior to the start of the call at:
Domestic: 1-888-317-6003
International: 1-412-317-6061
Conference ID: 7461950
A telephonic replay will be available following the call through May 5, 2017 by dialing:
Domestic: 1-877-344-7529
International: 1-412-317-0088
Replay ID: 10105151
About Group 1 Automotive, Inc.
Group 1 owns and operates 159 automotive dealerships, 210 franchises, and 45 collision centers in the United States, the United Kingdom and Brazil that offer 30 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service contracts; provides automotive maintenance and repair services; and sells vehicle parts.
Investors please visit www.group1corp.com, www.group1auto.com, www.group1collision.com, www.facebook.com/group1auto, and www.twitter.com/group1auto, where Group 1 discloses additional information about the Company, its business, and its results of operations.
FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements related to future, not past, events and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. In this context, the forward-looking statements often include statements regarding our goals, plans, projections and guidance regarding our financial position, results of operations, market position, pending and potential future acquisitions and business strategy, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should," "foresee," "may" or "will" and similar expressions. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Any such forward-looking statements are not assurances of future performance and involve risks and uncertainties that may cause actual results to differ materially from those set forth in the statements. These risks and uncertainties include, among other things, (a) general economic and business conditions, (b) the level of manufacturer incentives, (c) the future regulatory environment, (d) our ability to obtain an inventory of desirable new and used vehicles, (e) our relationship with our automobile manufacturers and the willingness of manufacturers to approve future acquisitions, (f) our cost of financing and the availability of credit for consumers, (g) our ability to complete acquisitions and dispositions and the risks associated therewith, (h) foreign exchange controls and currency fluctuations, and (i) our ability to retain key personnel. For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with the SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.
NON-GAAP FINANCIAL MEASURES
In addition to evaluating the financial condition and results of our operations in accordance with GAAP, from time to time our management evaluates and analyzes results and any impact on the Company of strategic decisions and actions relating to, among other things, cost reduction, growth, and profitability improvement initiatives, and other events outside of normal, or "core," business and operations, by considering alternative financial measures not prepared in accordance with GAAP. This includes evaluating measures such as adjusted selling, general and administrative expenses, adjusted net income and adjusted diluted earnings per share. These adjusted measures are not measures of financial performance under U.S. GAAP, but are instead considered non-GAAP financial performance measures. Non-GAAP measures do not have definitions under GAAP and may be defined differently by and not be comparable to similarly titled measures used by other companies. As a result, any non-GAAP financial measures considered and evaluated by management are reviewed in conjunction with a review of the most directly comparable measures calculated in accordance with GAAP. We caution investors not to place undue reliance on such non-GAAP measures, but also to consider them with the most directly comparable GAAP measures. In our evaluation of results from time to time, we exclude items that do not arise directly from core operations, such as non-cash asset impairment charges, gains and losses on dealership franchise or real estate transactions, and catastrophic weather events such as hail storms, hurricanes, and snow storms. Because these non-core charges and gains materially affect the Company's financial condition or results in the specific period in which they are recognized, management also evaluates, and makes resource allocation and performance evaluation decisions based on, the related non-GAAP measures excluding such items.
In addition to using such non-GAAP measures to evaluate results in a specific period, management believes that such measures may provide more complete and consistent comparisons of operational performance on a period-over-period historical basis and a better indication of expected future trends. Our management also uses these adjusted measures in conjunction with U.S. GAAP financial measures to assess our business, including communication with our Board of Directors, investors and industry analysts concerning financial performance. We disclose these non-GAAP measures, and the related reconciliations, because we believe investors use these metrics in evaluating longer-term period-over-period performance, and to allow investors to better understand and evaluate the information used by management to assess operating performance. The exclusion of certain expenses in the calculation of non-GAAP financial measures should not be construed as an inference that these costs are unusual or infrequent. We anticipate excluding these expenses in the future presentation of our non-GAAP financial measures.
In addition, we evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our underlying business and results of operations, consistent with how we evaluate our performance. We calculate constant currency percentages by converting our current period reported results for entities reporting in currencies other than United States dollars using comparative period exchange rates rather than the actual exchange rates in effect during the respective periods. The constant currency performance measures should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with U.S. GAAP.
Investor contacts:
Sheila Roth
Manager, Investor Relations
Group 1 Automotive, Inc.
713-647-5741 | sroth@group1auto.com
Media contacts:
Pete DeLongchamps
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 March 31,
----------------------------
2017 2016 % Increase/
(Decrease)
----------
REVENUES:
New vehicle retail sales $1,337,213 $1,409,851 (5.2)
Used vehicle retail sales 660,927 688,171 (4.0)
Used vehicle wholesale
sales 104,157 101,592 2.5
Parts and service 319,698 308,592 3.6
Finance, insurance and
other, net 96,834 100,149 (3.3)
------ -------
Total revenues 2,518,829 2,608,355 (3.4)
COST OF SALES:
New vehicle retail sales 1,267,986 1,338,124 (5.2)
Used vehicle retail sales 615,922 638,971 (3.6)
Used vehicle wholesale
sales 104,057 100,143 3.9
Parts and service 147,342 142,016 3.8
------- -------
Total cost of sales 2,135,307 2,219,254 (3.8)
GROSS PROFIT 383,522 389,101 (1.4)
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 289,779 293,664 (1.3)
DEPRECIATION AND
AMORTIZATION EXPENSE 13,606 12,464 9.2
ASSET IMPAIRMENTS - 932 (100.0)
OPERATING INCOME 80,137 82,041 (2.3)
OTHER EXPENSE:
Floorplan interest expense (11,942) (11,010) 8.5
Other interest expense,
net (16,999) (16,929) 0.4
------- -------
INCOME BEFORE INCOME TAXES 51,196 54,102 (5.4)
PROVISION FOR INCOME TAXES (17,257) (19,811) (12.9)
NET INCOME $33,939 $34,291 (1.0)
======= =======
Less: Earnings allocated
to participating
securities $1,250 $1,348 (7.3)
Earnings available to
diluted common shares $32,689 $32,943 (0.8)
======= =======
DILUTED EARNINGS PER SHARE $1.58 $1.47 7.5
Weighted average dilutive
common shares outstanding 20,698 22,453 (7.8)
Weighted average
participating securities 818 921 (11.2)
--- ---
Total weighted average
shares outstanding 21,516 23,374 (7.9)
Group 1 Automotive, Inc.
Consolidated Balance Sheets
(Dollars in thousands)
March 31, December 31, % Increase/
2017 2016 (Decrease)
---- ---- ---------
ASSETS: (Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $33,770 $20,992 60.9
Contracts in transit and vehicle
receivables, net 213,772 269,508 (20.7)
Accounts and notes receivable, net 152,794 173,364 (11.9)
Inventories, net 1,729,525 1,651,815 4.7
Prepaid expenses and other current
assets 23,216 34,908 (33.5)
------ ------
Total current assets 2,153,077 2,150,587 0.1
PROPERTY AND EQUIPMENT, net 1,152,395 1,125,883 2.4
GOODWILL AND INTANGIBLE FRANCHISE
RIGHTS 1,162,351 1,161,639 0.1
OTHER ASSETS 21,540 23,794 (9.5)
Total assets $4,489,363 $4,461,903 0.6
========== ==========
LIABILITIES AND STOCKHOLDERS'
EQUITY:
CURRENT LIABILITIES:
Floorplan notes payable -credit
facility and other $1,170,383 $1,136,654 3.0
Offset account related to floorplan
notes payable -credit facility (97,149) (59,626) 62.9
Floorplan notes payable -
manufacturer affiliates 392,388 392,661 (0.1)
Offset account related to floorplan
notes payable -manufacturer
affiliates (26,750) (25,500) 4.9
Current maturities of long-term
debt and short-term financing 46,340 72,419 (36.0)
Current liabilities from interest
rate risk management activities 2,597 3,941 (34.1)
Accounts payable 347,746 356,099 (2.3)
Accrued expenses 185,720 176,469 5.2
------- -------
Total current liabilities 2,021,275 2,053,117 (1.6)
5.00% SENIOR NOTES (principal of
$550,000 at March 31, 2017 and
December 31, 2016, respectively) 540,858 540,465 0.1
5.25% SENIOR NOTES (principal of
$300,000 at March 31, 2017 and
December 31, 2016, respectively) 295,729 295,591 0.0
REAL ESTATE RELATED AND OTHER LONG-
TERM DEBT, net of current
maturities 345,775 333,326 3.7
CAPITAL LEASE OBLIGATIONS RELATED TO
REAL ESTATE, net of current
maturities 42,356 43,427 (2.5)
DEFERRED INCOME TAXES 168,772 161,502 4.5
LIABILITIES FROM INTEREST RATE RISK
MANAGEMENT ACTIVITIES 17,762 20,470 (13.2)
OTHER LIABILITIES 87,876 83,805 4.9
STOCKHOLDERS' EQUITY:
Common stock 256 257 (0.4)
Additional paid-in capital 285,455 290,899 (1.9)
Retained earnings 1,082,101 1,053,301 2.7
Accumulated other comprehensive loss (140,149) (146,944) (4.6)
Treasury stock (258,703) (267,313) (3.2)
-------- --------
Total stockholders' equity 968,960 930,200 4.2
Total liabilities and stockholders'
equity $4,489,363 $4,461,903 0.6
========== ==========
Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
Three Months Ended
March 31,
---------
2017 (%) 2016 (%)
------- -------
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
Region Geographic Market
------ -----------------
East Georgia 4.5 3.8
Massachusetts 4.2 5.0
Florida 2.5 2.4
New Hampshire 1.8 1.7
New Jersey 1.6 1.6
Louisiana 1.6 1.4
Mississippi 1.5 1.5
South Carolina 1.3 1.4
Alabama 1.2 0.8
Maryland 0.4 0.4
20.6 20.0
West Texas 34.8 37.0
California 7.9 9.0
Oklahoma 6.4 7.2
Kansas 1.6 1.8
Louisiana 0.5 0.6
51.2 55.6
International United Kingdom 23.6 18.0
Brazil 4.6 6.4
100.0 100.0
===== =====
NEW VEHICLE UNIT SALES BRAND MIX:
---------------------------------
Toyota/Scion/Lexus 23.2 23.8
BMW/MINI 14.3 13.1
Ford/Lincoln 12.8 11.5
Volkswagen/Audi/Porsche 12.5 10.6
Honda/Acura 9.1 10.5
Nissan 8.2 7.9
Chevrolet/GMC/Buick/Cadillac 6.7 7.8
Mercedes-Benz/smart/Sprinter 3.9 3.7
Chrysler/Dodge/Jeep/RAM 3.7 4.0
Hyundai/Kia 3.4 4.7
Other 2.2 2.4
100.0 100.0
===== =====
Group 1 Automotive, Inc.
Additional Information - U.S.
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended March 31,
----------------------------
2017 2016 % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail sales $1,018,249 $1,100,393 (7.5)
Used vehicle retail sales 521,947 558,764 (6.6)
Used vehicle wholesale sales 70,545 68,873 2.4
------ ------
Total used 592,492 627,637 (5.6)
Parts and service 271,159 263,458 2.9
Finance, insurance and other,
net 85,819 90,145 (4.8)
------ ------
Total $1,967,719 $2,081,633 (5.5)
GROSS MARGIN %:
New vehicle retail sales 5.0 4.9
Used vehicle retail sales 7.3 7.8
Used vehicle wholesale sales (0.5) 1.2
Total used 6.3 7.1
Parts and service 53.8 54.7
Finance, insurance and other,
net 100.0 100.0
Total 16.3 16.0
GROSS PROFIT:
New vehicle retail sales $51,209 $54,146 (5.4)
Used vehicle retail sales 37,932 43,455 (12.7)
Used vehicle wholesale sales (362) 844 (142.9)
---- ---
Total used 37,570 44,299 (15.2)
Parts and service 145,998 144,120 1.3
Finance, insurance and other,
net 85,819 90,145 (4.8)
------ ------
Total $320,596 $332,710 (3.6)
UNITS SOLD:
Retail new vehicles sold 27,498 30,801 (10.7)
Retail used vehicles sold 24,929 26,831 (7.1)
Wholesale used vehicles sold 9,981 10,413 (4.1)
----- ------
Total used 34,910 37,244 (6.3)
AVERAGE RETAIL SALES PRICE:
New vehicle retail $37,030 $35,726 3.7
Used vehicle retail $20,937 $20,825 0.5
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales $1,862 $1,758 5.9
Used vehicle retail sales 1,522 1,620 (6.0)
Used vehicle wholesale sales (36) 81 (144.4)
Total used 1,076 1,189 (9.5)
Finance, insurance and other,
net (per retail unit) $1,637 $1,564 4.7
OTHER:
SG&A expenses $236,273 $245,838 (3.9)
Adjusted SG&A expenses(1) $238,106 $244,086 (2.4)
SG&A as % revenues 12.0 11.8
Adjusted SG&A as % revenues
(1) 12.1 11.7
SG&A as % gross profit 73.7 73.9
Adjusted SG&A as % gross
profit (1) 74.3 73.4
Operating margin % 3.7 3.6
Adjusted operating margin %
(1) 3.6 3.7
Pretax margin % 2.3 2.4
Adjusted pretax margin % (1) 2.2 2.5
INTEREST EXPENSE:
Floorplan interest expense $(10,878) $(10,049) 8.2
Floorplan assistance 10,284 11,251 (8.6)
------ ------
Net floorplan (expense)
income $(594) $1,202 (149.4)
Other interest expense, net $(16,272) $(15,513) 4.9
(1) See the section of this
release entitled "Non-GAAP
Financial Measures " and the
tables attached hereto for
information regarding certain
selected items that the Company
believes impact comparability
of financial results between
reporting periods, as well as
for information regarding non-
GAAP financial measures and
their reconciliation to the
most directly comparable
measures as reported in
accordance with U.S. GAAP.
Group 1 Automotive, Inc.
Additional Information - U.K.
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended March 31,
2017 2016 % Increase/ Constant Currency(1)
(Decrease) % Increase/ (Decrease)
--------- ----------------------
REVENUES:
New vehicle retail sales $258,640 $246,536 4.9 21.3
Used vehicle retail sales 115,369 110,117 4.8 21.1
Used vehicle wholesale
sales 30,509 32,032 (4.8) 10.1
------ ------
Total used 145,878 142,149 2.6 18.6
Parts and service 36,781 34,549 6.5 23.0
Finance, insurance and
other, net 9,028 8,662 4.2 20.5
----- -----
Total $450,327 $431,896 4.3 20.5
GROSS MARGIN %:
New vehicle retail sales 5.6 5.6
Used vehicle retail sales 4.7 4.7
Used vehicle wholesale
sales 0.7 1.8
Total used 3.9 4.1
Parts and service 57.7 53.4
Finance, insurance and
other, net 100.0 100.0
Total 11.2 10.8
GROSS PROFIT:
New vehicle retail sales $14,401 $13,854 3.9 20.2
Used vehicle retail sales 5,429 5,210 4.2 20.5
Used vehicle wholesale
sales 211 572 (63.1) (57.9)
--- ---
Total used 5,640 5,782 (2.5) 12.7
Parts and service 21,225 18,448 15.1 33.0
Finance, insurance and
other, net 9,028 8,662 4.2 20.5
----- -----
Total $50,294 $46,746 7.6 24.3
UNITS SOLD:
Retail new vehicles sold 9,018 7,358 22.6
Retail used vehicles sold 5,611 4,595 22.1
Wholesale used vehicles
sold 4,169 3,642 14.5
----- -----
Total used 9,780 8,237 18.7
AVERAGE RETAIL SALES PRICE:
New vehicle retail $28,680 $33,506 (14.4) (1.1)
Used vehicle retail $20,561 $23,965 (14.2) (0.8)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales $1,597 $1,883 (15.2) (2.0)
Used vehicle retail sales 968 1,134 (14.6) (1.3)
Used vehicle wholesale
sales 51 157 (67.5) (63.2)
Total used 577 702 (17.8) (5.1)
Finance, insurance and
other, net (per retail
unit) $617 $725 (14.9) (1.6)
OTHER:
SG&A expenses $41,624 $37,436 11.2 28.5
Adjusted SG&A expenses(1) $41,624 $36,875 12.9 30.4
SG&A as % revenues 9.2 8.7
Adjusted SG&A as % revenues
(1) 9.2 8.5
SG&A as % gross profit 82.8 80.1
Adjusted SG&A as % gross
profit (1) 82.8 78.9
Operating margin % 1.6 1.8
Adjusted operating margin %
(1) 1.6 1.9
Pretax margin % 1.2 1.3
Adjusted pretax margin %
(1) 1.2 1.4
INTEREST EXPENSE:
Floorplan interest expense $(1,034) $(920) 12.4 29.7
Floorplan assistance 229 263 (12.9) 0.5
--- ---
Net floorplan expense $(805) $(657) 22.5 41.5
Other interest expense, net $(581) $(1,282) (54.7) (47.9)
(1) See the section of this
release entitled "Non-GAAP
Financial Measures " and the
tables attached hereto for
information regarding certain
selected items that the Company
believes impact comparability
of financial results between
reporting periods, as well as
for information regarding non-
GAAP financial measures and
their reconciliation to the
most directly comparable
measures as reported in
accordance with U.S. GAAP.
Group 1 Automotive, Inc.
Additional Information - Brazil
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended March 31,
2017 2016 % Increase/ Constant Currency (1)
(Decrease) % Increase/ (Decrease)
--------- ----------------------
REVENUES:
New vehicle retail sales $60,324 $62,922 (4.1) (22.5)
Used vehicle retail sales 23,611 19,290 22.4 (1.3)
Used vehicle wholesale
sales 3,103 687 351.7 263.1
----- ---
Total used 26,714 19,977 33.7 7.8
Parts and service 11,758 10,585 11.1 (10.3)
Finance, insurance and
other, net 1,987 1,342 48.1 19.1
----- -----
Total $100,783 $94,826 6.3 (14.2)
GROSS MARGIN %:
New vehicle retail sales 6.0 5.9
Used vehicle retail sales 7.0 2.8
Used vehicle wholesale
sales 8.1 4.8
Total used 7.1 2.8
Parts and service 43.7 37.9
Finance, insurance and
other, net 100.0 100.0
Total 12.5 10.2
GROSS PROFIT:
New vehicle retail sales $3,617 $3,727 (3.0) (21.9)
Used vehicle retail sales 1,644 535 207.3 147.2
Used vehicle wholesale
sales 251 33 660.6 514.3
--- ---
Total used 1,895 568 233.6 168.3
Parts and service 5,133 4,008 28.1 3.3
Finance, insurance and
other, net 1,987 1,342 48.1 19.1
----- -----
Total $12,632 $9,645 31.0 5.5
UNITS SOLD:
Retail new vehicles sold 1,774 2,622 (32.3)
Retail used vehicles sold 1,026 1,365 (24.8)
Wholesale used vehicles
sold 379 311 21.9
--- ---
Total used 1,405 1,676 (16.2)
AVERAGE RETAIL SALES PRICE:
New vehicle retail $34,005 $23,998 41.7 14.5
Used vehicle retail $23,013 $14,132 62.8 31.3
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales $2,039 $1,421 43.5 15.5
Used vehicle retail sales 1,602 392 308.7 228.9
Used vehicle wholesale
sales 662 106 524.5 404.1
Total used 1,349 339 297.9 220.0
Finance, insurance and
other, net (per retail
unit) $710 $337 110.7 69.7
OTHER:
SG&A expenses $11,882 $10,390 14.4 (7.9)
Adjusted SG&A expenses(1) $11,882 $10,019 18.6 (4.5)
SG&A as % revenues 11.8 11.0
Adjusted SG&A as % revenues
(1) 11.8 10.6
SG&A as % gross profit 94.1 107.7
Adjusted SG&A as % gross
profit (1) 94.1 103.9
Operating margin % 0.4 (1.5)
Adjusted operating margin %
(1) 0.4 (0.7)
Pretax margin % 0.2 (1.7)
Adjusted pretax margin %
(1) 0.2 (0.9)
INTEREST EXPENSE:
Floorplan interest expense $(30) $(41) (26.8) (42.6)
Floorplan assistance - - - -
--- ---
Net floorplan expense $(30) $(41) (26.8) (42.6)
Other interest expense, net $(146) $(134) 9.0 (13.6)
(1) See the section of this
release entitled "Non-GAAP
Financial Measures " and the
tables attached hereto for
information regarding certain
selected items that the Company
believes impact comparability
of financial results between
reporting periods, as well as
for information regarding non-
GAAP financial measures and
their reconciliation to the
most directly comparable
measures as reported in
accordance with U.S. GAAP.
Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended March 31,
2017 2016 % Increase/ Constant Currency % (1)
(Decrease) Increase/ (Decrease)
--------- --------------------
REVENUES:
New vehicle retail sales $1,337,213 $1,409,851 (5.2) (3.1)
Used vehicle retail sales 660,927 688,171 (4.0) (2.0)
Used vehicle wholesale sales 104,157 101,592 2.5 6.6
------- -------
Total used 765,084 789,763 (3.1) (0.9)
Parts and service 319,698 308,592 3.6 4.7
Finance, insurance and other,
net 96,834 100,149 (3.3) (2.3)
------ -------
Total $2,518,829 $2,608,355 (3.4) (1.5)
GROSS MARGIN %:
New vehicle retail sales 5.2 5.1
Used vehicle retail sales 6.8 7.1
Used vehicle wholesale sales 0.1 1.4
Total used 5.9 6.4
Parts and service 53.9 54.0
Finance, insurance and other,
net 100.0 100.0
Total 15.2 14.9
GROSS PROFIT:
New vehicle retail sales $69,227 $71,727 (3.5) (1.3)
Used vehicle retail sales 45,005 49,200 (8.5) (7.5)
Used vehicle wholesale sales 100 1,449 (93.1) (94.6)
--- -----
Total used 45,105 50,649 (10.9) (9.9)
Parts and service 172,356 166,576 3.5 4.9
Finance, insurance and other,
net 96,834 100,149 (3.3) (2.3)
------ -------
Total $383,522 $389,101 (1.4) (0.1)
UNITS SOLD:
Retail new vehicles sold 38,290 40,781 (6.1)
Retail used vehicles sold 31,566 32,791 (3.7)
Wholesale used vehicles sold 14,529 14,366 1.1
------ ------
Total used 46,095 47,157 (2.3)
AVERAGE RETAIL SALES PRICE:
New vehicle retail $34,923 $34,571 1.0 3.2
Used vehicle retail $20,938 $20,987 (0.2) 1.8
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales $1,808 $1,759 2.8 5.1
Used vehicle retail sales 1,426 1,500 (4.9) (3.9)
Used vehicle wholesale sales 7 101 (93.1) (94.6)
Total used 979 1,074 (8.8) (7.9)
Finance, insurance and other,
net (per retail unit) $1,386 $1,361 1.8 2.9
OTHER:
SG&A expenses $289,779 $293,664 (1.3) 0.1
Adjusted SG&A expenses(1) $291,612 $290,980 0.2 1.6
SG&A as % revenues 11.5 11.3
Adjusted SG&A as % revenues
(1) 11.6 11.2
SG&A as % gross profit 75.6 75.5
Adjusted SG&A as % gross
profit (1) 76.0 74.8
Operating margin % 3.2 3.1
Adjusted operating margin %
(1) 3.1 3.3
Pretax margin % 2.0 2.1
Adjusted pretax margin % (1) 2.0 2.2
INTEREST EXPENSE:
Floorplan interest expense $(11,942) $(11,010) 8.5 9.9
Floorplan assistance 10,513 11,514 (8.7) (8.7)
------ ------
Net floorplan (expense)
income $(1,429) $504 (383.5) (413.7)
Other interest expense, net $(16,999) $(16,929) 0.4 0.7
(1) See the section of this
release entitled "Non-GAAP
Financial Measures " and the
tables attached hereto for
information regarding certain
selected items that the Company
believes impact comparability
of financial results between
reporting periods, as well as
for information regarding non-
GAAP financial measures and
their reconciliation to the
most directly comparable
measures as reported in
accordance with U.S. GAAP.
Group 1 Automotive, Inc.
Additional Information - Same Store U.S. (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended March 31,
----------------------------
2017 2016 % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail
sales $1,018,248 $1,081,354 (5.8)
Used vehicle retail
sales 521,945 549,854 (5.1)
Used vehicle wholesale
sales 70,545 66,761 5.7
------ ------
Total used 592,490 616,615 (3.9)
Parts and service 271,160 260,134 4.2
Finance, insurance and
other, net 85,390 88,632 (3.7)
------ ------
Total $1,967,288 $2,046,735 (3.9)
GROSS MARGIN %:
New vehicle retail
sales 5.0 4.9
Used vehicle retail
sales 7.3 7.7
Used vehicle wholesale
sales (0.5) 1.9
Total used 6.3 7.1
Parts and service 53.8 54.6
Finance, insurance and
other, net 100.0 100.0
Total 16.3 16.0
GROSS PROFIT:
New vehicle retail
sales $51,206 $53,237 (3.8)
Used vehicle retail
sales 37,934 42,352 (10.4)
Used vehicle wholesale
sales (343) 1,242 (127.6)
---- -----
Total used 37,591 43,594 (13.8)
Parts and service 146,000 142,062 2.8
Finance, insurance and
other, net 85,390 88,632 (3.7)
------ ------
Total $320,187 $327,525 (2.2)
UNITS SOLD:
Retail new vehicles
sold 27,498 30,062 (8.5)
Retail used vehicles
sold 24,929 26,357 (5.4)
Wholesale used vehicles
sold 9,981 10,113 (1.3)
----- ------
Total used 34,910 36,470 (4.3)
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $37,030 $35,971 2.9
Used vehicle retail $20,937 $20,862 0.4
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $1,862 $1,771 5.1
Used vehicle retail
sales 1,522 1,607 (5.3)
Used vehicle wholesale
sales (34) 123 (127.6)
Total used 1,077 1,195 (9.9)
Finance, insurance and
other, net (per retail
unit) $1,629 $1,571 3.7
OTHER:
SG&A expenses $235,953 $241,027 (2.1)
Adjusted SG&A
expenses(2) $237,786 $238,208 (0.2)
SG&A as % revenues 12.0 11.8
Adjusted SG&A as %
revenues (2) 12.1 11.6
SG&A as % gross profit 73.7 73.6
Adjusted SG&A as %
gross profit (2) 74.3 72.7
Operating margin % 3.7 3.7
Adjusted operating
margin % (2) 3.6 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) See the section of this
release entitled "Non-GAAP
Financial Measures " and the
tables attached hereto for
information regarding certain
selected items that the Company
believes impact comparability
of financial results between
reporting periods, as well as
for information regarding non-
GAAP financial measures and
their reconciliation to the
most directly comparable
measures as reported in
accordance with U.S. GAAP.
Group 1 Automotive, Inc.
Additional Information - Same Store U.K. (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended March 31,
2017 2016 % Increase/ Constant Currency (2)
(Decrease) % Increase/ (Decrease)
--------- ----------------------
REVENUES:
New vehicle retail
sales $222,305 $232,238 (4.3) 10.7
Used vehicle retail
sales 94,051 100,674 (6.6) 8.1
Used vehicle wholesale
sales 24,396 28,800 (15.3) (2.0)
------ ------
Total used 118,447 129,474 (8.5) 5.8
Parts and service 28,219 30,107 (6.3) 8.4
Finance, insurance and
other, net 7,618 8,191 (7.0) 7.5
----- -----
Total $376,589 $400,010 (5.9) 8.9
GROSS MARGIN %:
New vehicle retail
sales 5.7 5.8
Used vehicle retail
sales 5.0 5.2
Used vehicle wholesale
sales 2.0 2.1
Total used 4.4 4.5
Parts and service 56.9 53.0
Finance, insurance and
other, net 100.0 100.0
Total 11.1 10.8
GROSS PROFIT:
New vehicle retail
sales $12,698 $13,444 (5.5) 9.2
Used vehicle retail
sales 4,743 5,198 (8.8) 5.5
Used vehicle wholesale
sales 499 597 (16.4) (4.3)
--- ---
Total used 5,242 5,795 (9.5) 4.5
Parts and service 16,059 15,958 0.6 16.4
Finance, insurance and
other, net 7,618 8,191 (7.0) 7.5
----- -----
Total $41,617 $43,388 (4.1) 10.9
UNITS SOLD:
Retail new vehicles
sold 7,650 6,884 11.1
Retail used vehicles
sold 4,592 4,215 8.9
Wholesale used vehicles
sold 3,361 3,361 -
----- -----
Total used 7,953 7,576 5.0
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $29,059 $33,736 (13.9) (0.4)
Used vehicle retail $20,481 $23,885 (14.2) (0.8)
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $1,660 $1,953 (15.0) (1.8)
Used vehicle retail
sales 1,033 1,233 (16.2) (3.1)
Used vehicle wholesale
sales 148 178 (16.9) (4.3)
Total used 659 765 (13.9) (0.4)
Finance, insurance and
other, net (per retail
unit) $622 $738 (15.7) (2.5)
OTHER:
SG&A expenses $31,186 $32,015 (2.6) 12.6
Adjusted SG&A
expenses(2) $31,186 $31,454 (0.9) 14.6
SG&A as % revenues 8.3 8.0
Adjusted SG&A as %
revenues (2) 8.3 7.9
SG&A as % gross profit 74.9 73.8
Adjusted SG&A as %
gross profit (2) 74.9 72.5
Operating margin % 2.4 2.5
Adjusted operating
margin % (2) 2.4 2.6
(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) See the section of this
release entitled "Non-GAAP
Financial Measures " and the
tables attached hereto for
information regarding certain
selected items that the Company
believes impact comparability
of financial results between
reporting periods, as well as
for information regarding non-
GAAP financial measures and
their reconciliation to the
most directly comparable
measures as reported in
accordance with U.S. GAAP.
Group 1 Automotive, Inc.
Additional Information - Same Store Brazil (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended March 31,
----------------------------
2017 2016 % Increase/ Constant Currency (2)
(Decrease) % Increase/ (Decrease)
--------- ----------------------
REVENUES:
New vehicle retail
sales $53,912 $57,210 (5.8) (23.9)
Used vehicle retail
sales 20,406 16,400 24.4 0.3
Used vehicle wholesale
sales 3,010 442 581.0 450.3
----- ---
Total used 23,416 16,842 39.0 12.1
Parts and service 10,244 8,133 26.0 1.8
Finance, insurance and
other, net 1,690 1,071 57.8 26.7
----- -----
Total $89,262 $83,256 7.2 (13.4)
GROSS MARGIN %:
New vehicle retail
sales 6.1 5.9
Used vehicle retail
sales 7.4 2.9
Used vehicle wholesale
sales 7.9 7.7
Total used 7.5 3.0
Parts and service 45.8 39.6
Finance, insurance and
other, net 100.0 100.0
Total 12.8 9.8
GROSS PROFIT:
New vehicle retail
sales $3,289 $3,350 (1.8) (20.9)
Used vehicle retail
sales 1,515 470 222.3 158.2
Used vehicle wholesale
sales 238 34 600.0 457.1
--- ---
Total used 1,753 504 247.8 178.7
Parts and service 4,689 3,220 45.6 17.6
Finance, insurance and
other, net 1,690 1,071 57.8 26.7
----- -----
Total $11,421 $8,145 40.2 13.0
UNITS SOLD:
Retail new vehicles
sold 1,579 2,207 (28.5)
Retail used vehicles
sold 928 1,048 (11.5)
Wholesale used vehicles
sold 247 204 21.1
--- ---
Total used 1,175 1,252 (6.2)
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $34,143 $25,922 31.7 6.4
Used vehicle retail $21,989 $15,649 40.5 13.2
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $2,083 $1,518 37.2 10.6
Used vehicle retail
sales 1,633 448 264.5 191.5
Used vehicle wholesale
sales 964 167 477.2 360.1
Total used 1,492 403 270.2 196.9
Finance, insurance and
other, net (per retail
unit) $674 $329 104.9 64.5
OTHER:
SG&A expenses $10,252 $7,878 30.1 4.9
SG&A as % revenues 11.5 9.5
SG&A as % gross profit 89.8 96.7
Operating margin % 0.9 0.0
(1) Same store amounts include
the results for the identical
months in each period presented
in the comparison, commencing
with the first full month we
owned the dealership and, in
the case of dispositions,
ending with the last full month
we owned it. Same store results
also include the activities of
our corporate office.
(2) See the section of this
release entitled "Non-GAAP
Financial Measures " and the
tables attached hereto for
information regarding certain
selected items that the Company
believes impact comparability
of financial results between
reporting periods, as well as
for information regarding non-
GAAP financial measures and
their reconciliation to the
most directly comparable
measures as reported in
accordance with U.S. GAAP.
Group 1 Automotive, Inc.
Additional Information - Same Store Consolidated (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended March 31,
2017 2016 % Increase/ Constant Currency (2))
(Decrease) % Increase/ (Decrease)
--------- ----------------------
REVENUES:
New vehicle retail
sales $1,294,465 $1,370,802 (5.6) (3.8)
Used vehicle retail
sales 636,402 666,928 (4.6) (3.0)
Used vehicle wholesale
sales 97,951 96,003 2.0 5.4
------ ------
Total used 734,353 762,931 (3.7) (1.9)
Parts and service 309,623 298,374 3.8 4.6
Finance, insurance and
other, net 94,698 97,894 (3.3) (2.4)
------ ------
Total $2,433,139 $2,530,001 (3.8) (2.2)
GROSS MARGIN %:
New vehicle retail
sales 5.2 5.1
Used vehicle retail
sales 6.9 7.2
Used vehicle wholesale
sales 0.4 2.0
Total used 6.1 6.5
Parts and service 53.9 54.0
Finance, insurance and
other, net 100.0 100.0
Total 15.3 15.0
GROSS PROFIT:
New vehicle retail
sales $67,193 $70,031 (4.1) (2.1)
Used vehicle retail
sales 44,192 48,020 (8.0) (7.1)
Used vehicle wholesale
sales 394 1,873 (79.0) (77.5)
--- -----
Total used 44,586 49,893 (10.6) (9.7)
Parts and service 166,748 161,240 3.4 4.4
Finance, insurance and
other, net 94,698 97,894 (3.3) (2.4)
------ ------
Total $373,225 $379,058 (1.5) (0.4)
UNITS SOLD:
Retail new vehicles
sold 36,727 39,153 (6.2)
Retail used vehicles
sold 30,449 31,620 (3.7)
Wholesale used vehicles
sold 13,589 13,678 (0.7)
------ ------
Total used 44,038 45,298 (2.8)
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $35,246 $35,011 0.7 2.6
Used vehicle retail $20,901 $21,092 (0.9) 0.8
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $1,830 $1,789 2.3 4.3
Used vehicle retail
sales 1,451 1,519 (4.5) (3.5)
Used vehicle wholesale
sales 29 137 (78.8) (77.4)
Total used 1,012 1,101 (8.1) (7.1)
Finance, insurance and
other, net (per retail
unit) $1,410 $1,383 2.0 2.8
OTHER:
SG&A expenses $277,391 $280,920 (1.3) (0.2)
Adjusted SG&A
expenses(2) $279,224 $277,540 0.6 1.6
SG&A as % revenues 11.4 11.1
Adjusted SG&A as %
revenues (2) 11.5 11.0
SG&A as % gross profit 74.3 74.1
Adjusted SG&A as %
gross profit (2) 74.8 73.2
Operating margin % 3.4 3.4
Adjusted operating
margin % (2) 3.3 3.5
(1) Same store amounts include
the results for the identical
months in each period presented
in the comparison, commencing
with the first full month we
owned the dealership and, in
the case of dispositions,
ending with the last full month
we owned it. Same store results
also include the activities of
our corporate office.
(2) See the section of this
release entitled "Non-GAAP
Financial Measures " and the
tables attached hereto for
information regarding certain
selected items that the Company
believes impact comparability
of financial results between
reporting periods, as well as
for information regarding non-
GAAP financial measures and
their reconciliation to the
most directly comparable
measures as reported in
accordance with U.S. GAAP.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - U.S.
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended March 31,
----------------------------
2017 2016 % Increase/
(Decrease)
---------
SG&A RECONCILIATION:
As reported $236,273 $245,838 (3.9)
Pre-tax adjustments:
Catastrophic events - (2,655)
Gain on real estate and dealership
transactions - 933
Acquisition costs - (30)
Legal settlements (4) 1,833 -
Adjusted SG&A (1) $238,106 $244,086 (2.4)
SG&A AS % REVENUES:
Unadjusted 12.0 11.8
Adjusted (1) 12.1 11.7
SG&A AS % GROSS PROFIT:
Unadjusted 73.7 73.9
Adjusted (1) 74.3 73.4
OPERATING MARGIN %
Unadjusted 3.7 3.6
Adjusted (1), (2) 3.6 3.7
PRETAX MARGIN %:
Unadjusted 2.3 2.4
Adjusted (1), (2) 2.2 2.5
SAME STORE SG&A RECONCILIATION:
As reported $235,953 $241,027 (2.1)
Pre-tax adjustments:
Catastrophic events - (2,655)
Gain on real estate and dealership
transactions - (134)
Acquisition costs - (30)
Legal settlements (4) 1,833 -
Adjusted Same Store SG&A (1) $237,786 $238,208 (0.2)
SAME STORE SG&A AS % REVENUES:
Unadjusted 12.0 11.8
Adjusted (1) 12.1 11.6
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 73.7 73.6
Adjusted (1) 74.3 72.7
SAME STORE OPERATING MARGIN %
Unadjusted 3.7 3.7
Adjusted (1), (3) 3.6 3.9
(1) See the section of this
release entitled "Non-GAAP
Financial Measures " for
information regarding non-GAAP
financial measures and certain
selected items that the Company
believes impact comparability
of financial results between
reporting periods.
(2) Excludes the impact of SG&A
reconciling items above, as
well as non-cash asset
impairment charges of $510 for
three months March 31, 2016.
(3) Excludes the impact of Same
Store SG&A reconciling items
above, as well as non-cash
asset impairment charges of
$510 for three months March 31,
2016.
(4) For the three months ended
March 31, 2017, the Company
recognized a net pre-tax gain
related to a settlement with an
OEM of $1.8 million.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - U.K.
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended March 31,
----------------------------
2017 2016 % Increase/
(Decrease)
---------
SG&A RECONCILIATION:
As reported $41,624 $37,436 11.2
Pre-tax adjustments:
Acquisition costs - (561)
Adjusted SG&A (1) $41,624 $36,875 12.9
SG&A AS % REVENUES:
Unadjusted 9.2 8.7
Adjusted (1) 9.2 8.5
SG&A AS % GROSS PROFIT:
Unadjusted 82.8 80.1
Adjusted (1) 82.8 78.9
OPERATING MARGIN %
Unadjusted 1.6 1.8
Adjusted (1), (2) 1.6 1.9
PRETAX MARGIN %:
Unadjusted 1.2 1.3
Adjusted (1), (2) 1.2 1.4
SAME STORE SG&A RECONCILIATION:
As reported $31,186 $32,015 (2.6)
Pre-tax adjustments:
Acquisition costs - (561)
Adjusted Same Store SG&A (1) $31,186 $31,454 (0.9)
SAME STORE SG&A AS % REVENUES:
Unadjusted 8.3 8.0
Adjusted (1) 8.3 7.9
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 74.9 73.8
Adjusted (1) 74.9 72.5
SAME STORE OPERATING MARGIN %
Unadjusted 2.4 2.5
Adjusted (1), (3) 2.4 2.6
(1) See the section of this
release entitled "Non-GAAP
Financial Measures " for
information regarding non-GAAP
financial measures and certain
selected items that the Company
believes impact comparability
of financial results between
reporting periods.
(2) Excludes the impact of SG&A
reconciling items above.
(3) Excludes the impact of Same
Store SG&A reconciling items
above.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - Brazil
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended March 31,
----------------------------
2017 2016 % Increase/ (Decrease)
---- ---- ----------------------
SG&A RECONCILIATION:
As reported $11,882 $10,390 14.4
Pre-tax adjustments:
Loss on real estate and dealership
transactions - (371)
Adjusted SG&A (1) $11,882 $10,019 18.6
SG&A AS % REVENUES:
Unadjusted 11.8 11.0
Adjusted (1) 11.8 10.6
SG&A AS % GROSS PROFIT:
Unadjusted 94.1 107.7
Adjusted (1) 94.1 103.9
OPERATING MARGIN %
Unadjusted 0.4 (1.5)
Adjusted (1), (2) 0.4 (0.7)
PRETAX MARGIN %:
Unadjusted 0.2 (1.7)
Adjusted (1), (2) 0.2 (0.9)
(1) See the
section of
this release
entitled
"Non-GAAP
Financial
Measures "
for
information
regarding
non-GAAP
financial
measures and
certain
selected
items that
the Company
believes
impact
comparability
of financial
results
between
reporting
periods.
(2) Excludes the
impact of
SG&A
reconciling
items above,
as well as
non-cash
asset
impairment
charges of
$423 for the
three months
ended March
31, 2016.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - CONSOLIDATED
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended March 31,
----------------------------
2017 2016 % Increase/ (Decrease)
---- ---- ----------------------
NET INCOME RECONCILIATION:
As reported $33,939 $34,291 (1.0)
Pre-tax adjustments:
Catastrophic events
Pre-tax - 2,655
Tax impact - (996)
Gain on real estate and dealership
transactions
Pre-tax - (137)
Tax impact - 349
Acquisition costs including related tax
impact
Pre-tax - 589
Tax impact - (11)
Legal settlements (4)
Pre-tax (1,833) -
Tax impact 696 -
Non-cash asset impairment
Pre-tax - 510
Tax impact - (195)
Adjusted net income (1) $32,802 $37,055 (11.5)
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED
COMMON SHARES RECONCILIATION:
Adjusted net income (1) $32,802 $37,055 (11.5)
Less: Adjusted earnings allocated to
participating securities 1,206 1,457 (17.2)
Adjusted net income available to diluted
common shares (1) $31,596 $35,598 (11.2)
DILUTED (LOSS) INCOME PER COMMON SHARE RECONCILIATION:
As reported $1.58 $1.47 7.5
Pre-tax adjustments:
Catastrophic events - 0.07
Gain on real estate and dealership
transactions - 0.01
Acquisition costs including related tax
impact - 0.03
Legal settlements (4) (0.05) -
Non-cash asset impairment - 0.01
Adjusted diluted income per share (1) $1.53 $1.59 (3.8)
SG&A RECONCILIATION:
As reported $289,779 $293,664 (1.3)
Pre-tax adjustments:
Catastrophic events - (2,655)
Gain on real estate and dealership
transactions - 562
Acquisition costs - (591)
Legal settlements (4) 1,833 -
Adjusted SG&A (1) $291,612 $290,980 0.2
SG&A AS % REVENUES:
Unadjusted 11.5 11.3
Adjusted (1) 11.6 11.2
SG&A AS % GROSS PROFIT:
Unadjusted 75.6 75.5
Adjusted (1) 76.0 74.8
OPERATING MARGIN %
Unadjusted 3.2 3.1
Adjusted (1), (2) 3.1 3.3
PRETAX MARGIN %:
Unadjusted 2.0 2.1
Adjusted (1), (2) 2.0 2.2
SAME STORE SG&A RECONCILIATION:
As reported $277,391 $280,920 (1.3)
Pre-tax adjustments:
Catastrophic events - (2,655)
Loss on real estate and dealership
transactions - (134)
Acquisition costs - (591)
Legal settlements (4) 1,833 -
Adjusted Same Store SG&A (1) $279,224 $277,540 0.6
SAME STORE SG&A AS % REVENUES:
Unadjusted 11.4 11.1
Adjusted (1) 11.5 11.0
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 74.3 74.1
Adjusted (1) 74.8 73.2
SAME STORE OPERATING MARGIN %
Unadjusted 3.4 3.4
Adjusted (1), (3) 3.3 3.5
(1) See the
section of
this release
entitled
"Non-GAAP
Financial
Measures "
for
information
regarding
non-GAAP
financial
measures and
certain
selected
items that
the Company
believes
impact
comparability
of financial
results
between
reporting
periods.
(2) Excludes the
impact of
SG&A
reconciling
items above,
as well as
non-cash
asset
impairment
charges of
$932 for the
three months
ended March
31, 2016.
(3) Excludes the
impact of
Same Store
SG&A
reconciling
items above,
as well as
non-cash
asset
impairment
charges of
$510 for the
three
months ended
March 31,
2016.
(4) For the three
months ended
March 31,
2017, the
Company
recognized a
net pre-tax
gain related
to a
settlement
with an OEM
of $1.8
million.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/group-1-automotive-reports-first-quarter-2017-financial-results-300447808.html
SOURCE Group 1 Automotive, Inc.
