GROUP 1 AUTOMOTIVE, INC. HOUSTON, April 27, 2016 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), an international, Fortune 500 automotive retailer, today reported record 2016 first quarter adjusted net income of $37.1 million, a 3.5 percent increase, and record first quarter adjusted diluted earnings per common share of $1.59, an 8.2 percent increase, on a year-over-year comparable basis for the period ended March 31, 2016.
Adjusted net income and diluted earnings per share primarily exclude $1.7 million of net after-tax adjustments for insurance deductibles associated with vehicle damage from hailstorms in the U.S., and approximately $800 thousand related to the decision to divest four stores in Brazil. On a GAAP basis, reported net income for the quarter was $34.3 million and diluted earnings per common share were $1.47. Reconciliations of non-GAAP financial measures are included in the attached financial tables.
"We are pleased with this quarter's consolidated top-line revenue growth of 9.7 percent on a local currency basis, which was driven by strong performance from our U.K. team and impressive used vehicle and service growth in our U.S. operations," said Earl J. Hesterberg, Group 1's president and chief executive officer. "The revenue growth, coupled with stability in U.S. vehicle margins allowed us to grow adjusted net income and earnings for the quarter. Additionally, given the tremendous value we saw in our recent stock price, we executed an aggressive share repurchase program, buying approximately 1.5 million shares since the end of last year."
Mr. Hesterberg also commented, "The Brazilian auto market dropped another 28 percent in Q1 due to massive political turmoil, yet our Brazilian operations held Same Store revenue flat on a local currency basis--an amazing performance. Additionally, we implemented a significant set of portfolio enhancement actions this quarter, which include the divesture of four underperforming stores and the addition of four growth franchises. These actions should largely conclude our store restructuring program and better position us to maintain profitability in Brazil this year."
Consolidated Results for First Quarter 2016 (year-over-year comparable basis)
We have included constant exchange rate growth metrics both below (shown in parenthesis) and in the financial tables that follow for ease of comparison:
-- Total revenue increased 7.2 percent (9.7 percent on a constant exchange
basis) to a first-quarter record of $2.6 billion; total gross profit
grew 6.9 percent (8.6 percent) to $389.1 million.
-- New vehicle revenues increased 5.8 percent (8.5 percent) on 3.9 percent
higher unit sales. New vehicle gross profit increased 2.9 percent (5.9
percent) to $71.7 million.
-- Retail used vehicle revenues increased 10.4 percent (12.6 percent) on
9.4 percent higher unit sales. Retail used vehicle gross profit improved
6.7 percent (7.8 percent) to $49.2 million as lower margins, down $38
per unit, partially offset the quarter's revenue growth.
-- Parts and service gross profit increased 10.5 percent (12.2 percent) on
revenue growth of 9.4 percent (11.4 percent). Same Store parts and
service gross profit increased 6.5 percent (8.0 percent) on revenue
growth of 5.4 percent (7.3 percent).
-- Same Store Finance and Insurance (F&I) gross profit per retail unit
(PRU) increased 0.7 percent (1.6 percent) to $1,385 per retail unit.
U.S. F&I gross profit per unit increased $26 to a best ever record of
$1,564.
-- Adjusted Selling, General and Administrative (SG&A) expenses as a
percent of gross profit increased 20 basis points to 74.8 percent.
Segment Results for First Quarter 2016 (year-over-year comparable basis)
-- United States:The Company's U.S. revenues were $2.1 billion, an increase
of 4.2 percent. The revenue growth reflects a 6.7 percent increase in
retail used vehicles unit sales, as well as increases of 8.4 percent in
parts and service revenue and 3.6 percent in finance and insurance
revenue. This sales performance delivered gross profit growth of 5.8
percent, reflecting an 80 basis point improvement in parts and service
gross margin, as well as the aforementioned growth in F&I PRU. Adjusted
SG&A expenses as a percent of gross profit increased 30 basis points to
73.4 percent and adjusted operating margin was flat at 3.7 percent. The
Company's U.S. operations accounted for 79.8 percent of total revenues
and 85.5 percent of total gross profit.
-- United Kingdom:The Company's U.K. operations accounted for 16.6 percent
of total revenues and 12.0 percent of total gross profit. Total revenue
increased 44.2 percent (52.4 percent) to $431.9 million, and gross
profit increased 36.9 percent (44.6 percent). Revenue growth was
primarily driven by 63.2 and 26.1 percent increases in new and used
vehicle retail unit sales, respectively. On a Same Store basis, adjusted
SG&A expenses as a percent of gross profit improved 370 basis points to
74.6 percent.
-- Brazil:The Company's Brazilian operations accounted for 3.6 percent of
total revenues and 2.5 percent of total gross profit. Brazil's new
vehicle industry volumes declined roughly 28 percent due to continued
weakness in the local economy, while the Company's Same Store new
vehicle revenue was only down 6.2 percent on a constant exchange basis.
Total Same Store revenue was only down 0.4 percent on a local currency
basis as strong growth in used retail and parts and service mostly
offset the decline in new vehicle sales.
Corporate Development
As previously announced, the Company acquired 15 franchises in the U.K. during February 2016. In April 2016, the Company acquired 2 franchises in Brazil, which include BMW and Toyota, and also began operations at the Land Rover and Jaguar open point that had been awarded last year. These acquisitions are expected to generate $595 million in estimated annual revenues.
As previously announced, the Company has disposed of a Volkswagen franchise and Toyota franchise in the U.S. Year to date, the Company has also disposed of 3 stores in Brazil, which include two Nissan franchises and a Peugeot franchise, with plans to dispose of another Peugeot store later this year. These franchises represented approximately $110 million of annual revenues.
Share Repurchase Authorization
During the first quarter of 2016, the Company repurchased 576,230 shares at an average price of $55.44 for a total of $31.9 million. Thus far in April 2016, the Company has repurchased an additional 911,207 shares at an average price of $54.87 for a total of $50.0 million. As of April 27, 2016, $68.1 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 Earnings Conference Call Details
The Company's senior management will host a conference call today at 10 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, then click on 'Investor Relations' and then 'Events' or through this link: http://www.group1corp.com/events. A webcast replay will be available for 30 days.
The conference call will also be available live by dialing in 15 minutes prior to the start of the call at:
Domestic: 1-888-317-6003
International: 1-412-317-6061
Conference ID: 6811652
A telephonic replay will be available following the call through May 4, 2016 by dialing:
Domestic: 1-877-344-7529
International: 1-412-317-0088
Replay ID: 10083995
ABOUT GROUP 1 AUTOMOTIVE, INC.
Group 1 owns and operates 162 automotive dealerships, 213 franchises, and 37 collision centersin the United States, the United Kingdom and Brazil that offer 34 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service 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
This press release and the attached financial tables contain certain non-GAAP financial measures as defined under SEC rules, such as adjusted net income and adjusted earnings per share from continuing operations, which exclude certain items disclosed in the attached financial tables. As required by SEC rules, the Company provides reconciliations of these measures to the most directly comparable GAAP measures. The Company believes that these non-GAAP financial measures improve the transparency of the Company's disclosure, provide a meaningful presentation of the Company's results from its core business operations excluding the impact of items not related to the Company's ongoing core business operations, and improve the period-to-period comparability of the Company's results from its core business operations.
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,
----------------------------
2016 2015 % Increase/
(Decrease)
----------
REVENUES:
New vehicle retail sales $1,409,851 $1,332,724 5.8
Used vehicle retail sales 688,171 623,193 10.4
Used vehicle wholesale
sales 101,592 100,192 1.4
Parts and service 308,592 282,189 9.4
Finance and insurance 100,149 94,556 5.9
------- ------
Total revenues 2,608,355 2,432,854 7.2
COST OF SALES:
New vehicle retail sales 1,338,124 1,262,993 5.9
Used vehicle retail sales 638,971 577,072 10.7
Used vehicle wholesale
sales 100,143 97,513 2.7
Parts and service 142,016 131,392 8.1
------- -------
Total cost of sales 2,219,254 2,068,970 7.3
GROSS PROFIT 389,101 363,884 6.9
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 293,664 271,469 8.2
DEPRECIATION AND
AMORTIZATION EXPENSE 12,464 11,684 6.7
ASSET IMPAIRMENTS 932 - 100.0
OPERATING INCOME 82,041 80,731 1.6
OTHER EXPENSE:
Floorplan interest expense (11,010) (9,348) 17.8
Other interest expense,
net (16,929) (13,911) 21.7
INCOME BEFORE INCOME TAXES 54,102 57,472 (5.9)
PROVISION FOR INCOME TAXES (19,811) (21,657) (8.5)
NET INCOME $34,291 $35,815 (4.3)
======= =======
Less: Earnings allocated
to participating
securities $1,348 $1,388 (2.9)
Earnings available to
diluted common shares $32,943 $34,427 (4.3)
======= =======
DILUTED EARNINGS PER SHARE $1.47 $1.47 -
Weighted average dilutive
common shares outstanding 22,453 23,446 (4.2)
Weighted average
participating securities 921 932 (1.2)
--- ---
Total weighted average
shares outstanding 23,374 24,378 (4.1)
Group 1 Automotive, Inc.
Consolidated Balance Sheets
(Unaudited)
(Dollars in thousands)
March 31, December 31, % Increase/
2016 2015 (Decrease)
---- ---- ---------
ASSETS:
CURRENT ASSETS:
Cash and cash equivalents $22,381 $13,037 71.7
Contracts in transit and vehicle
receivables, net 209,542 252,438 (17.0)
Accounts and notes receivable, net 154,162 157,768 (2.3)
Inventories, net 1,826,531 1,737,751 5.1
Prepaid expenses and other current assets 41,463 27,376 51.5
------ ------
Total current assets 2,254,079 2,188,370 3.0
PROPERTY AND EQUIPMENT, net 1,063,852 1,033,981 2.9
GOODWILL AND INTANGIBLE FRANCHISE RIGHTS 1,206,188 1,162,503 3.8
OTHER ASSETS 9,727 11,862 (18.0)
Total assets $4,533,846 $4,396,716 3.1
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES:
Floorplan notes payable -credit facility
and other $1,239,792 $1,265,719 (2.0)
Offset account related to floorplan notes
payable -credit facility (104,081) (110,759) (6.0)
Floorplan notes payable -manufacturer
affiliates 437,672 389,071 12.5
Offset account related to floorplan notes
payable -manufacturer affiliates (30,000) (25,500) 17.6
Current maturities of long-term debt and
short-term financing 37,506 54,991 (31.8)
Accounts payable 327,594 280,423 16.8
Accrued expenses 194,870 185,323 5.2
Total current liabilities 2,103,353 2,039,268 3.1
5.00% SENIOR NOTES (principal of $550,000
at March 31, 2016 and December 31, 2015,
respectively) 539,309 538,933 0.1
5.25% SENIOR NOTES (principal of $300,000
at March 31, 2016 and December 31, 2015,
respectively) 295,186 295,156 -
REAL ESTATE RELATED AND OTHER LONG-TERM
DEBT, net of current maturities 375,144 317,290 18.2
CAPITAL LEASE OBLIGATIONS RELATED TO REAL
ESTATE, net of current maturities 47,040 48,155 (2.3)
DEFERRED INCOME TAXES 138,984 136,644 1.7
LIABILITIES FROM INTEREST RATE RISK
MANAGEMENT ACTIVITIES 43,122 31,153 38.4
OTHER LIABILITIES 78,915 71,865 9.8
STOCKHOLDERS' EQUITY:
Common stock 257 257 -
Additional paid-in capital 283,196 291,092 (2.7)
Retained earnings 955,326 926,169 3.1
Accumulated other comprehensive loss (144,856) (137,984) 5.0
Treasury stock (181,130) (161,282) 12.3
Total stockholders' equity 912,793 918,252 (0.6)
------- -------
Total liabilities and stockholders' equity $4,533,846 $4,396,716 3.1
========== ==========
Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
Three Months Ended
March 31,
---------
2016 (%) 2015 (%)
-------- --------
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
Region Geographic Market
------ -----------------
East Massachusetts 5.0 5.8
Georgia 3.8 4.7
Florida 2.4 1.3
New Hampshire 1.7 1.7
New Jersey 1.6 2.2
Mississippi 1.5 1.6
Louisiana 1.4 1.6
South Carolina 1.4 1.4
Alabama 0.8 0.8
Maryland 0.4 0.5
20.0 21.6
West Texas 37.0 38.5
California 9.0 9.4
Oklahoma 7.2 7.7
Kansas 1.8 2.2
Louisiana 0.6 0.7
55.6 58.5
International United Kingdom 18.0 11.5
Brazil 6.4 8.4
100.0 100.0
===== =====
NEW VEHICLE UNIT SALES BRAND MIX:
---------------------------------
Toyota/Scion/Lexus 23.8 26.1
BMW/MINI 13.1 11.7
Ford/Lincoln 11.5 12.0
Volkswagen/Audi/Porsche 10.6 6.0
Honda/Acura 10.5 10.7
Nissan 7.9 9.3
Chevrolet/GMC/Buick/Cadillac 7.8 7.5
Hyundai/Kia 4.7 5.7
Chrysler/Dodge/Jeep/RAM 4.0 4.5
Mercedes-Benz/smart/Sprinter 3.7 4.1
Other 2.4 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,
----------------------------
2016 2015 % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail sales $1,100,393 $1,087,159 1.2
Used vehicle retail sales 558,764 511,973 9.1
Used vehicle wholesale
sales 68,873 69,378 (0.7)
------ ------
Total used 627,637 581,351 8.0
Parts and service 263,458 242,944 8.4
Finance and insurance 90,145 87,046 3.6
------ ------
Total $2,081,633 $1,998,500 4.2
GROSS MARGIN %:
New vehicle retail sales 4.9 4.9
Used vehicle retail sales 7.8 7.9
Used vehicle wholesale
sales 1.2 3.1
Total used 7.1 7.3
Parts and service 54.7 53.9
Finance and insurance 100.0 100.0
Total 16.0 15.7
GROSS PROFIT:
New vehicle retail sales $54,146 $53,687 0.9
Used vehicle retail sales 43,455 40,552 7.2
Used vehicle wholesale
sales 844 2,145 (60.7)
--- -----
Total used 44,299 42,697 3.8
Parts and service 144,120 131,058 10.0
Finance and insurance 90,145 87,046 3.6
------ ------
Total $332,710 $314,488 5.8
UNITS SOLD:
Retail new vehicles sold 30,801 31,438 (2.0)
Retail used vehicles sold 26,831 25,148 6.7
Wholesale used vehicles
sold 10,413 10,544 (1.2)
------ ------
Total used 37,244 35,692 4.3
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $35,726 $34,581 3.3
Used vehicle retail $20,825 $20,358 2.3
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $1,758 $1,708 2.9
Used vehicle retail sales 1,620 1,613 0.4
Used vehicle wholesale
sales 81 203 (60.1)
Total used 1,189 1,196 (0.6)
Finance and insurance
(per retail unit) $1,564 $1,538 1.7
OTHER: (1)
SG&A expenses $244,086 $229,972 6.1
SG&A as % revenues 11.7 11.5
SG&A as % gross profit 73.4 73.1
Operating margin % 3.7 3.7
Pretax margin % 2.5 2.7
INTEREST EXPENSE:
Floorplan interest
expense $(10,049) $(8,518) 18.0
Floorplan assistance 11,251 10,576 6.4
------ ------
Net floorplan income $1,202 $2,058 (41.6)
Other interest expense,
net $(15,513) $(12,724) 21.9
(1) These amounts have been adjusted
to exclude the impact of certain
items to provide additional
information regarding the
performance of our operations and
improve period-to-period
comparability. Refer to our
Reconciliation of Certain Non-GAAP
Financial Measures for a description
of the aforementioned adjustments.
Group 1 Automotive, Inc.
Additional Information - U.K.
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended March 31,
2016 2015 % Increase/ Local Currency
(Decrease) % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail sales $246,536 $151,211 63.0 72.1
Used vehicle retail sales 110,117 89,136 23.5 30.8
Used vehicle wholesale
sales 32,032 28,078 14.1 20.8
------ ------
Total used 142,149 117,214 21.3 28.4
Parts and service 34,549 25,588 35.0 43.0
Finance and insurance 8,662 5,528 56.7 65.7
----- -----
Total $431,896 $299,541 44.2 52.4
GROSS MARGIN %:
New vehicle retail sales 5.6 6.6
Used vehicle retail sales 4.7 5.2
Used vehicle wholesale
sales 1.8 1.1
Total used 4.1 4.2
Parts and service 53.4 53.6
Finance and insurance 100.0 100.0
Total 10.8 11.4
GROSS PROFIT:
New vehicle retail sales $13,854 $9,950 39.2 46.6
Used vehicle retail sales 5,210 4,638 12.3 18.9
Used vehicle wholesale
sales 572 321 78.2 88.3
--- ---
Total used 5,782 4,959 16.6 23.4
Parts and service 18,448 13,721 34.5 42.3
Finance and insurance 8,662 5,528 56.7 65.7
----- -----
Total $46,746 $34,158 36.9 44.6
UNITS SOLD:
Retail new vehicles sold 7,358 4,509 63.2
Retail used vehicles sold 4,595 3,643 26.1
Wholesale used vehicles
sold 3,642 2,935 24.1
----- -----
Total used 8,237 6,578 25.2
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $33,506 $33,535 (0.1) 5.5
Used vehicle retail $23,965 $24,468 (2.1) 3.7
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $1,883 $2,207 (14.7) (10.2)
Used vehicle retail sales 1,134 1,273 (10.9) (5.7)
Used vehicle wholesale
sales 157 109 44.0 51.7
Total used 702 754 (6.9) (1.4)
Finance and insurance
(per retail unit) $725 $678 6.9 13.0
OTHER: (1)
SG&A expenses $36,875 $26,762 37.8 45.9
SG&A as % revenues 8.5 8.9
SG&A as % gross profit 78.9 78.3
Operating margin % 1.9 2.1
Pretax margin % 1.4 1.7
INTEREST EXPENSE:
Floorplan interest
expense $(920) $(510) 80.4 91.3
Floorplan assistance 263 185 42.2 50.4
--- ---
Net floorplan expense $(657) $(325) 102.2 114.6
Other interest expense,
net $(1,282) $(735) 74.4 84.7
(1) These amounts have been adjusted
to exclude the impact of certain
items to provide additional
information regarding the
performance of our operations and
improve period-to-period
comparability. Refer to our
Reconciliation of Certain Non-GAAP
Financial Measures for a description
of the aforementioned adjustments.
Group 1 Automotive, Inc.
Additional Information - Brazil
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended March 31,
2016 2015 % Increase/ Local Currency
(Decrease) % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail sales $62,922 $94,354 (33.3) (9.1)
Used vehicle retail sales 19,290 22,084 (12.7) 20.3
Used vehicle wholesale
sales 687 2,736 (74.9) (65.3)
--- -----
Total used 19,977 24,820 (19.5) 10.9
Parts and service 10,585 13,657 (22.5) 5.6
Finance and insurance 1,342 1,982 (32.3) (7.3)
----- -----
Total $94,826 $134,813 (29.7) (3.9)
GROSS MARGIN %:
New vehicle retail sales 5.9 6.5
Used vehicle retail sales 2.8 4.2
Used vehicle wholesale
sales 4.8 7.8
Total used 2.8 4.6
Parts and service 37.9 44.1
Finance and insurance 100.0 100.0
Total 10.2 11.3
GROSS PROFIT:
New vehicle retail sales $3,727 $6,094 (38.8) (16.3)
Used vehicle retail sales 535 931 (42.5) (19.5)
Used vehicle wholesale
sales 33 213 (84.5) (78.7)
--- ---
Total used 568 1,144 (50.3) (30.5)
Parts and service 4,008 6,018 (33.4) (9.0)
Finance and insurance 1,342 1,982 (32.3) (7.3)
----- -----
Total $9,645 $15,238 (36.7) (13.3)
UNITS SOLD:
Retail new vehicles sold 2,622 3,292 (20.4)
Retail used vehicles sold 1,365 1,192 14.5
Wholesale used vehicles
sold 311 461 (32.5)
--- ---
Total used 1,676 1,653 1.4
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $23,998 $28,662 (16.3) 14.1
Used vehicle retail $14,132 $18,527 (23.7) 5.1
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $1,421 $1,851 (23.2) 5.1
Used vehicle retail sales 392 781 (49.8) (29.7)
Used vehicle wholesale
sales 106 462 (77.1) (68.4)
Total used 339 692 (51.0) (31.5)
Finance and insurance
(per retail unit) $337 $442 (23.8) 4.2
OTHER: (1)
SG&A expenses $10,019 $14,735 (32.0) (6.9)
SG&A as % revenues 10.6 10.9
SG&A as % gross profit 103.9 96.7
Operating margin % (0.7) -
Pretax margin % (0.9) (0.6)
INTEREST EXPENSE:
Floorplan interest
expense $(41) $(320) (87.2) (81.2)
Floorplan assistance - - - -
--- ---
Net floorplan expense $(41) $(320) (87.2) (81.2)
Other interest expense,
net $(134) $(452) (70.4) (59.2)
(1) These amounts have been adjusted
to exclude the impact of certain
items to provide additional
information regarding the
performance of our operations and
improve period-to-period
comparability. Refer to our
Reconciliation of Certain Non-GAAP
Financial Measures for a description
of the aforementioned adjustments.
Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended March 31,
2016 2015 % Increase/ Local Currency
(Decrease) % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail sales $1,409,851 $1,332,724 5.8 8.5
Used vehicle retail sales 688,171 623,193 10.4 12.6
Used vehicle wholesale
sales 101,592 100,192 1.4 3.5
------- -------
Total used 789,763 723,385 9.2 11.4
Parts and service 308,592 282,189 9.4 11.4
Finance and insurance 100,149 94,556 5.9 7.0
------- ------
Total $2,608,355 $2,432,854 7.2 9.7
GROSS MARGIN %:
New vehicle retail sales 5.1 5.2
Used vehicle retail sales 7.1 7.4
Used vehicle wholesale
sales 1.4 2.7
Total used 6.4 6.7
Parts and service 54.0 53.4
Finance and insurance 100.0 100.0
Total 14.9 15.0
GROSS PROFIT:
New vehicle retail sales $71,727 $69,731 2.9 5.9
Used vehicle retail sales 49,200 46,121 6.7 7.8
Used vehicle wholesale
sales 1,449 2,679 (45.9) (44.3)
----- -----
Total used 50,649 48,800 3.8 4.9
Parts and service 166,576 150,797 10.5 12.2
Finance and insurance 100,149 94,556 5.9 7.0
------- ------
Total $389,101 $363,884 6.9 8.6
UNITS SOLD:
Retail new vehicles sold 40,781 39,239 3.9
Retail used vehicles sold 32,791 29,983 9.4
Wholesale used vehicles
sold 14,366 13,940 3.1
------ ------
Total used 47,157 43,923 7.4
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $34,571 $33,964 1.8 4.4
Used vehicle retail $20,987 $20,785 1.0 3.0
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $1,759 $1,777 (1.0) 1.9
Used vehicle retail sales 1,500 1,538 (2.5) (1.4)
Used vehicle wholesale
sales 101 192 (47.4) (45.9)
Total used 1,074 1,111 (3.3) (2.3)
Finance and insurance
(per retail unit) $1,361 $1,366 (0.4) 0.6
OTHER: (1)
SG&A expenses $290,980 $271,469 7.2 9.4
SG&A as % revenues 11.2 11.2
SG&A as % gross profit 74.8 74.6
Operating margin % 3.3 3.3
Pretax margin % 2.2 2.4
INTEREST EXPENSE:
Floorplan interest
expense $(11,010) $(9,348) 17.8 18.6
Floorplan assistance 11,514 10,761 7.0 7.0
------ ------
Net floorplan expense $504 $1,413 (64.3) (69.5)
Other interest expense,
net $(16,929) $(13,911) 21.7 22.6
(1) These amounts have been adjusted
to exclude the impact of certain
items to provide additional
information regarding the
performance of our operations and
improve period-to-period
comparability. Refer to our
Reconciliation of Certain Non-GAAP
Financial Measures for a description
of the aforementioned adjustments.
Group 1 Automotive, Inc.
Additional Information - Same Store U.S. (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended March 31,
----------------------------
2016 2015 % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail
sales $1,061,126 $1,068,403 (0.7)
Used vehicle retail
sales 538,622 502,064 7.3
Used vehicle wholesale
sales 65,078 67,380 (3.4)
------ ------
Total used 603,700 569,444 6.0
Parts and service 254,955 237,698 7.3
Finance and insurance 87,598 86,106 1.7
------ ------
Total $2,007,379 $1,961,651 2.3
GROSS MARGIN %:
New vehicle retail
sales 4.9 4.9
Used vehicle retail
sales 7.8 8.0
Used vehicle wholesale
sales 1.7 3.1
Total used 7.1 7.4
Parts and service 54.7 54.0
Finance and insurance 100.0 100.0
Total 16.0 15.8
GROSS PROFIT:
New vehicle retail
sales $51,842 $52,647 (1.5)
Used vehicle retail
sales 41,795 40,009 4.5
Used vehicle wholesale
sales 1,091 2,110 (48.3)
----- -----
Total used 42,886 42,119 1.8
Parts and service 139,381 128,286 8.6
Finance and insurance 87,598 86,106 1.7
------ ------
Total $321,707 $309,158 4.1
UNITS SOLD:
Retail new vehicles
sold 29,972 30,939 (3.1)
Retail used vehicles
sold 26,148 24,761 5.6
Wholesale used vehicles
sold 10,112 10,356 (2.4)
------ ------
Total used 36,260 35,117 3.3
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $35,404 $34,533 2.5
Used vehicle retail $20,599 $20,276 1.6
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $1,730 $1,702 1.6
Used vehicle retail
sales 1,598 1,616 (1.1)
Used vehicle wholesale
sales 108 204 (47.1)
Total used 1,183 1,199 (1.3)
Finance and insurance
(per retail unit) $1,561 $1,546 1.0
OTHER:(2)
SG&A expenses $235,287 $224,342 4.9
SG&A as % revenues 11.7 11.4
SG&A as % gross profit 73.1 72.6
Operating margin % 3.8 3.8
(1) Same store amounts include the
results for the identical months in
each period presented in the
comparison, commencing with the
first full month we owned the
dealership and, in the case of
dispositions, ending with the last
full month we owned it. Same store
results also include the activities
of our corporate office.
(2) These amounts have been adjusted
to exclude the impact of certain
items to provide additional
information regarding the
performance of our operations and
improve period-to-period
comparability. Refer to our
Reconciliation of Certain Non-GAAP
Financial Measures for a description
of the aforementioned adjustments.
Group 1 Automotive, Inc.
Additional Information - Same Store U.K. (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended March 31,
2016 2015 % Increase/ Local Currency
(Decrease) % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail
sales $172,612 $151,211 14.2 20.4
Used vehicle retail
sales 91,515 89,136 2.7 8.6
Used vehicle wholesale
sales 24,788 28,078 (11.7) (6.6)
------ ------
Total used 116,303 117,214 (0.8) 5.0
Parts and service 25,737 25,588 0.6 6.5
Finance and insurance 6,687 5,528 21.0 27.8
----- -----
Total $321,339 $299,541 7.3 13.3
GROSS MARGIN %:
New vehicle retail
sales 6.0 6.6
Used vehicle retail
sales 4.9 5.2
Used vehicle wholesale
sales 2.4 1.1
Total used 4.3 4.2
Parts and service 54.5 53.6
Finance and insurance 100.0 100.0
Total 11.2 11.4
GROSS PROFIT:
New vehicle retail
sales $10,291 $9,952 3.4 8.9
Used vehicle retail
sales 4,442 4,637 (4.2) 1.3
Used vehicle wholesale
sales 587 320 83.4 93.7
--- ---
Total used 5,029 4,957 1.5 7.3
Parts and service 14,030 13,721 2.3 8.2
Finance and insurance 6,687 5,528 21.0 27.8
----- -----
Total $36,037 $34,158 5.5 11.4
UNITS SOLD:
Retail new vehicles
sold 5,121 4,509 13.6
Retail used vehicles
sold 3,896 3,643 6.9
Wholesale used vehicles
sold 3,039 2,935 3.5
----- -----
Total used 6,935 6,578 5.4
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $33,707 $33,535 0.5 6.0
Used vehicle retail $23,489 $24,468 (4.0) 1.6
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $2,010 $2,207 (8.9) (4.1)
Used vehicle retail
sales 1,140 1,273 (10.4) (5.2)
Used vehicle wholesale
sales 193 109 77.1 87.1
Total used 725 754 (3.8) 1.8
Finance and insurance
(per retail unit) $742 $678 9.4 15.6
OTHER: (2)
SG&A expenses $26,899 $26,763 0.5 6.4
SG&A as % revenues 8.4 8.9
SG&A as % gross profit 74.6 78.3
Operating margin % 2.5 2.1
(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 March 31,
----------------------------
2016 2015 % Increase/ Local Currency
(Decrease) % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail
sales $62,170 $90,439 (31.3) (6.2)
Used vehicle retail
sales 18,922 20,705 (8.6) 26.2
Used vehicle wholesale
sales 587 2,379 (75.3) (65.6)
--- -----
Total used 19,509 23,084 (15.5) 16.7
Parts and service 10,307 12,728 (19.0) 10.5
Finance and insurance 1,332 1,927 (30.9) (5.2)
----- -----
Total $93,318 $128,178 (27.2) (0.4)
GROSS MARGIN %:
New vehicle retail
sales 6.1 6.5
Used vehicle retail
sales 3.0 4.2
Used vehicle wholesale
sales 6.0 7.6
Total used 3.1 4.5
Parts and service 38.1 44.7
Finance and insurance 100.0 100.0
Total 10.3 11.3
GROSS PROFIT:
New vehicle retail
sales $3,789 $5,868 (35.4) (11.7)
Used vehicle retail
sales 566 863 (34.4) (7.6)
Used vehicle wholesale
sales 35 181 (80.7) (72.7)
--- ---
Total used 601 1,044 (42.4) (18.9)
Parts and service 3,923 5,695 (31.1) (5.8)
Finance and insurance 1,332 1,927 (30.9) (5.2)
----- -----
Total $9,645 $14,534 (33.6) (9.1)
UNITS SOLD:
Retail new vehicles
sold 2,559 3,079 (16.9)
Retail used vehicles
sold 1,317 1,070 23.1
Wholesale used vehicles
sold 291 384 (24.2)
--- ---
Total used 1,608 1,454 10.6
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $24,295 $29,373 (17.3) 12.8
Used vehicle retail $14,368 $19,350 (25.8) 2.5
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $1,481 $1,906 (22.3) 6.2
Used vehicle retail
sales 430 807 (46.7) (24.9)
Used vehicle wholesale
sales 120 471 (74.5) (64.0)
Total used 374 718 (47.9) (26.6)
Finance and insurance
(per retail unit) $344 $464 (25.9) 1.5
OTHER:(2)
SG&A expenses $9,760 $12,776 (23.6) 4.8
SG&A as % revenues 10.5 10.0
SG&A as % gross profit 101.2 87.9
Operating margin % (0.4) 1.1
(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 March 31,
2016 2015 % Increase/ Local Currency
(Decrease) % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail
sales $1,295,908 $1,310,053 (1.1) 1.4
Used vehicle retail
sales 649,059 611,905 6.1 8.1
Used vehicle wholesale
sales 90,453 97,837 (7.5) (5.8)
------ ------
Total used 739,512 709,742 4.2 6.2
Parts and service 290,999 276,014 5.4 7.3
Finance and insurance 95,617 93,561 2.2 3.1
------ ------
Total $2,422,036 $2,389,370 1.4 3.6
GROSS MARGIN %:
New vehicle retail
sales 5.1 5.2
Used vehicle retail
sales 7.2 7.4
Used vehicle wholesale
sales 1.9 2.7
Total used 6.6 6.8
Parts and service 54.1 53.5
Finance and insurance 100.0 100.0
Total 15.2 15.0
GROSS PROFIT:
New vehicle retail
sales $65,922 $68,467 (3.7) (0.9)
Used vehicle retail
sales 46,803 45,509 2.8 3.9
Used vehicle wholesale
sales 1,713 2,611 (34.4) (32.6)
----- -----
Total used 48,516 48,120 0.8 1.9
Parts and service 157,334 147,702 6.5 8.0
Finance and insurance 95,617 93,561 2.2 3.1
------ ------
Total $367,389 $357,850 2.7 4.2
UNITS SOLD:
Retail new vehicles
sold 37,652 38,527 (2.3)
Retail used vehicles
sold 31,361 29,474 6.4
Wholesale used vehicles
sold 13,442 13,675 (1.7)
------ ------
Total used 44,803 43,149 3.8
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $34,418 $34,004 1.2 3.7
Used vehicle retail $20,696 $20,761 (0.3) 1.6
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $1,751 $1,777 (1.5) 1.4
Used vehicle retail
sales 1,492 1,544 (3.4) (2.3)
Used vehicle wholesale
sales 127 191 (33.5) (31.4)
Total used 1,083 1,115 (2.9) (1.8)
Finance and insurance
(per retail unit) $1,385 $1,376 0.7 1.6
OTHER:(2)
SG&A expenses $271,946 $263,881 3.1 5.0
SG&A as % revenues 11.2 11.0
SG&A as % gross profit 74.0 73.7
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 March 31,
----------------------------
2016 2015 % Increase/
(Decrease)
---------
SG&A RECONCILIATION:
As reported $245,838 $229,972 6.9
Pre-tax adjustments:
Catastrophic events (2,655) -
Gain (loss) on real estate and
dealership transactions 933 -
Acquisition costs (30) -
Adjusted SG&A (1) $244,086 $229,972 6.1
SG&A AS % REVENUES:
Unadjusted 11.8 11.5
Adjusted (1) 11.7 11.5
SG&A AS % GROSS PROFIT:
Unadjusted 73.9 73.1
Adjusted (1) 73.4 73.1
OPERATING MARGIN %
Unadjusted 3.6 3.7
Adjusted (1), (2) 3.7 3.7
PRETAX MARGIN %:
Unadjusted 2.4 2.7
Adjusted (1), (3) 2.5 2.7
SAME STORE SG&A RECONCILIATION:
As reported $238,106 $224,342 6.1
Pre-tax adjustments:
Catastrophic events (2,655) -
Gain (loss) on real estate and
dealership transactions (134) -
Acquisition costs (30) -
Adjusted Same Store SG&A (1) $235,287 $224,342 4.9
SAME STORE SG&A AS % REVENUES:
Unadjusted 11.9 11.4
Adjusted (1) 11.7 11.4
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 74.0 72.6
Adjusted (1) 73.1 72.6
SAME STORE OPERATING MARGIN %
Unadjusted 3.6 3.8
Adjusted (1), (3) 3.8 3.8
(1) We have
included
certain non-
GAAP
financial
measures as
defined under
SEC rules,
which exclude
certain
items. These
adjusted
measures are
not measures
of financial
performance
under GAAP.
As required
by SEC rules,
we provide
reconciliations
of these
adjusted
measures to
the most
directly
comparable
GAAP
measures. We
believe that
these
adjusted
financial
measures are
relevant and
useful to
investors
because they
improve the
transparency
of our
disclosure,
provide a
meaningful
presentation
of results
from our core
business
operations
and improve
period-to-
period
comparability
of our
results from
our core
business
operations.
(2) Excludes the
impact of
SG&A
reconciling
items above,
as well as
non-cash
asset
impairment
charges of
$510 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.
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,
----------------------------
2016 2015 % Increase/
(Decrease)
---------
SG&A RECONCILIATION:
As reported $37,436 $26,762 39.9
Pre-tax adjustments:
Acquisition costs (561) -
Adjusted SG&A (1) $36,875 $26,762 37.8
SG&A AS % REVENUES:
Unadjusted 8.7 8.9
Adjusted (1) 8.5 8.9
SG&A AS % GROSS PROFIT:
Unadjusted 80.1 78.3
Adjusted (1) 78.9 78.3
OPERATING MARGIN %
Unadjusted 1.8 2.1
Adjusted (1), (2) 1.9 2.1
PRETAX MARGIN %:
Unadjusted 1.3 1.7
Adjusted (1), (2) 1.4 1.7
SAME STORE SG&A RECONCILIATION:
As reported $27,460 $26,763 2.6
Pre-tax adjustments:
Acquisition costs (561) -
Adjusted Same Store SG&A (1) $26,899 $26,763 0.5
SAME STORE SG&A AS % REVENUES:
Unadjusted 8.5 8.9
Adjusted (1) 8.4 8.9
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 76.2 78.3
Adjusted (1) 74.6 78.3
SAME STORE OPERATING MARGIN %
Unadjusted 2.3 2.1
Adjusted (1), (3) 2.5 2.1
(1) We have
included
certain non-
GAAP
financial
measures as
defined under
SEC rules,
which exclude
certain
items. These
adjusted
measures are
not measures
of financial
performance
under GAAP.
As required
by SEC rules,
we provide
reconciliations
of these
adjusted
measures to
the most
directly
comparable
GAAP
measures. We
believe that
these
adjusted
financial
measures are
relevant and
useful to
investors
because they
improve the
transparency
of our
disclosure,
provide a
meaningful
presentation
of results
from our core
business
operations
and improve
period-to-
period
comparability
of our
results from
our core
business
operations.
(2) Excludes the
impact of
SG&A
reconciling
items above.
(3) Excludes the
impact of
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,
----------------------------
2016 2015 % Increase/
(Decrease)
---------
SG&A RECONCILIATION:
As reported $10,390 $14,735 (29.5)
Pre-tax adjustments:
Gain (loss) on real estate and
dealership transactions (371) -
Adjusted SG&A (1) $10,019 $14,735 (32.0)
SG&A AS % REVENUES:
Unadjusted 11.0 10.9
Adjusted (1) 10.6 10.9
SG&A AS % GROSS PROFIT:
Unadjusted 107.7 96.7
Adjusted (1) 103.9 96.7
OPERATING MARGIN %
Unadjusted (1.5) -
Adjusted (1), (2) (0.7) -
PRETAX MARGIN %:
Unadjusted (1.7) (0.6)
Adjusted (1), (2) (0.9) (0.6)
SAME STORE OPERATING MARGIN %
Unadjusted (0.9) 1.1
Adjusted (1), (3) (0.4) 1.1
(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
$423 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
$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,
----------------------------
2016 2015 % Increase/
(Decrease)
---------
NET (LOSS) INCOME RECONCILIATION:
As reported $34,291 $35,815 (4.3)
Pre-tax adjustments:
Catastrophic events (4) 1,659 -
(Gain) loss on real estate and dealership
transactions (5) 212 -
Acquisition costs including related tax
impact (6) 578 -
Non-cash asset impairment (7) 315 -
Adjusted net income (1) $37,055 $35,815 3.5
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED
COMMON SHARES RECONCILIATION:
Adjusted net income (1) $37,055 $35,815 3.5
Less: Adjusted earnings allocated to
participating securities 1,457 1,388 5.0
Adjusted net income available to diluted
common shares (1) $35,598 $34,427 3.4
DILUTED (LOSS) INCOME PER COMMON SHARE RECONCILIATION:
As reported $1.47 $1.47 -
Pre-tax adjustments:
Catastrophic events 0.07 -
(Gain) loss on real estate and dealership
transactions 0.01 -
Acquisition costs including related tax
impact 0.03 -
Non-cash asset impairment 0.01 -
Adjusted diluted income per share (1) $1.59 $1.47 8.2
SG&A RECONCILIATION:
As reported $293,664 $271,469 8.2
Pre-tax adjustments:
Catastrophic events (2,655) -
Gain (loss) on real estate and dealership
transactions 562 -
Acquisition costs (591) -
Adjusted SG&A (1) $290,980 $271,469 7.2
SG&A AS % REVENUES:
Unadjusted 11.3 11.2
Adjusted (1) 11.2 11.2
SG&A AS % GROSS PROFIT:
Unadjusted 75.5 74.6
Adjusted (1) 74.8 74.6
OPERATING MARGIN %
Unadjusted 3.1 3.3
Adjusted (1), (2) 3.3 3.3
PRETAX MARGIN %:
Unadjusted 2.1 2.4
Adjusted (1), (2) 2.2 2.4
SAME STORE SG&A RECONCILIATION:
As reported $275,326 $263,881 4.3
Pre-tax adjustments:
Catastrophic events (2,655) -
Gain (loss) on real estate and dealership
transactions (134) -
Acquisition costs (591) -
Adjusted Same Store SG&A (1) $271,946 $263,881 3.1
SAME STORE SG&A AS % REVENUES:
Unadjusted 11.4 11.0
Adjusted (1) 11.2 11.0
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 74.9 73.7
Adjusted (1) 74.0 73.7
SAME STORE OPERATING MARGIN %
Unadjusted 3.3 3.5
Adjusted (1), (3) 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
Same Store
SG&A
reconciling
items above,
as well as
non-cash
asset
impairment
charges of
$932 for the
three months
ended March
31, 2016.
(4) Adjustment is
net of tax
benefit of
$996 for the
three months
ended March
31, 2016,
calculated
utilizing the
applicable
federal and
state tax
rates for
adjustment.
(5) Adjustment is
net of tax
provision of
$349 for the
three months
ended March
31, 2016,
calculated
utilizing the
applicable
federal and
state tax
rates for
adjustment.
(6) Adjustment is
net of tax
benefit of
$11 for the
three months
ended March
31, 2016,
calculated
utilizing the
applicable
federal and
state tax
rates for
adjustment.
(7) Adjustment is
net of tax
benefit of
$195 for the
three months
ended March
31, 2016,
calculated
utilizing the
applicable
federal and
state tax
rates for
adjustment.
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SOURCE Group 1 Automotive, Inc.
