GROUP 1 AUTOMOTIVE, INC. HOUSTON, July 28, 2016 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), an international, Fortune 500 automotive retailer, today reported second quarter 2016 net income of $46.6 million, diluted earnings per common share of $2.12, adjusted net income (a non-GAAP measure) of $47.4 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $2.16.
As shown in the non-GAAP reconciliation tables below, the 2016 second quarter adjusted results exclude approximately $830 thousand of net after-tax adjustments, or $0.04 per share, for non-core items, which primarily consists of hail and flood-related expenses of approximately $1.7 million after-tax, or $0.08 per share; a non-cash asset impairment charge for certain leasehold improvements of approximately $633 thousand after-tax, or $0.03 per share; and partially offset by a deferred income tax benefit within our Brazil segment of approximately $1.7 million, or $0.08 per share.
"While U.S. industry sales growth moderated during the quarter, improved margins and continued growth of our parts and service and finance and insurance businesses delivered top-line revenue growth of 3.8 percent on a local currency basis, and an all-time record for diluted earnings per share," said Earl J. Hesterberg, Group 1's president and chief executive officer. "Additionally, given the ongoing value represented by our recent stock price, we continued our share repurchase program, buying approximately 1.7 million common shares since the end of March 2016."
Consolidated Results for Second Quarter 2016 (year-over-year comparable basis)
For ease of comparison, we have included constant exchange rate growth metrics both below (shown in parenthesis) and in the financial tables that follow:
-- Total revenue increased 2.1 percent (3.8 percent) to a second-quarter
record of $2.8 billion; total gross profit grew 4.7 percent (6.1
percent) to $410.1 million.
-- New vehicle revenues increased 0.4 percent (2.3 percent) despite a 2.5
percent decrease in unit sales. New vehicle gross profit increased 6.6
percent (8.9 percent) to $81.1 million.
-- Retail used vehicle revenues increased 4.9 percent (6.5 percent) on 4.8
percent higher unit sales. Retail used vehicle gross profit improved 4.8
percent (6.1 percent) to $48.3 million.
-- Parts and service gross profit increased 4.9 percent (6.2 percent) on
revenue growth of 6.2 percent (7.7 percent). Same Store parts and
service gross profit increased 1.5 percent (2.5 percent) on revenue
growth of 3.3 percent (4.5 percent).
-- Same Store Finance and Insurance (F&I) gross profit per retail unit
(PRU) increased 3.1 percent (3.8 percent) to $1,435. U.S. F&I gross
profit PRU increased $67 to a best-ever record of $1,602.
-- On a GAAP basis, Selling, General and Administrative (SG&A) expenses as
a percent of gross profit increased 120 basis points to 72.9. Adjusted
SG&A expenses as a percent of gross profit increased 80 basis points to
72.2 percent.
Segment Results for Second Quarter 2016 (year-over-year comparable basis)
-- United States:The Company's U.S. operations accounted for 79.3 percent
of total revenues and 84.0 percent of total gross profit. Total U.S.
revenues were $2.2 billion, a decrease of 3.5 percent, due to a 10.0
percent decrease in retail new vehicle unit sales, as well as a slight
decrease of 1.6 percent in finance and insurance revenue, driven by the
decline in retail unit sales. While new vehicle sales volume contracted,
new vehicle gross profit per unit sold grew $246, or 15.3 percent per
unit, to $1,857. This margin performance delivered a new vehicle gross
profit growth of 3.7 percent. On a GAAP basis, SG&A expenses as a
percent of gross profit increased 110 basis points to 71.2 percent and
operating margin was flat at 4.0 percent. Adjusted SG&A expenses as a
percent of gross profit increased 50 basis points to 70.3 percent and
adjusted operating margin was flat at 4.1 percent.
-- United Kingdom:The Company's U.K. operations accounted for 16.8 percent
of total revenues and 13.3 percent of total gross profit. Total U.K.
revenues increased 51.8 percent (62.1 percent) to $467.8 million, and
gross profit increased 60.2 percent (71.5 percent) to $54.3 million.
Revenue growth was primarily driven by 66.1 percent (77.7 percent)
growth in F&I, 63.5 percent (74.7 percent) growth in new vehicles, and
58.5 percent (69.3 percent) growth in parts and service. On a local
currency basis, Same Store revenue increased 9.4 percent, reflecting
increases in all areas of the business.On a Same Store GAAP basis, SG&A
expenses as a percent of gross profit improved 280 basis points to 75.8
percent and operating margin grew 40 basis points to 2.4 percent. On a
Same Store basis, adjusted SG&A expenses as a percent of gross profit
improved 220 basis points to 75.8 percent and adjusted operating margin
grew 30 basis points to 2.4 percent.
-- Brazil:The Company's Brazilian operations accounted for 3.9 percent of
total revenues and 2.7 percent of total gross profit. Despite Brazil's
new vehicle industry decline of 22 percent from second quarter 2015, the
Company's total revenue, on a Same Store local currency basis, was only
down 4.1 percent. Significant revenue growth of 12.8 percent in used
retail, 7.1 percent in parts and service, and 30.1 percent in F&I mostly
offset the decline in new vehicle sales.
Corporate Development
As previously announced, in April 2016, the Company acquired two franchises in Brazil, which include BMW and Toyota, and also began operations at the Land Rover and Jaguar open point that was awarded last year. These acquisitions are expected to generate $20 million in estimated annual revenues.
Also as previously announced, in April 2016, the Company disposed of one Peugeot franchise in Brazil. In June 2016, the disposition of the last remaining Peugeot store within the Company's portfolio was completed. These franchises represented approximately $15 million of annual revenues.
Share Repurchase Authorization
During the second quarter of 2016, the Company repurchased 1,462,144 shares at an average price of $56.97 for a total of $83.3 million of which 911,207 and $50.0 million were previously announced purchases in April 2016. As of July 27, 2016, the Company has repurchased an additional 244,205 shares at an average price of $50.61 for a total of $12.4 million, and $22.4 million remains available under the Company's prior common stock share repurchase authorization. Year to date, the Company has repurchased 2.3 million shares representing a 10 percent reduction from the previously announced share count as of December 31, 2015. 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.
SECOND QUARTER EARNINGS CONFERENCE CALL DETAILS
The Company's senior management will host a conference call today at 10 a.m. ET to discuss the second quarter financial results and the Company's outlook and strategy.
The conference call will be simulcast live on the Internet at www.group1auto.com, then click on 'Investor Relations' and then 'Events' or through this link: http://www.group1corp.com/events. A webcast replay will be available for 30 days.
The conference call will also be available live by dialing in 15 minutes prior to the start of the call at:
Domestic: 1-888-317-6003
International: 1-412-317-6061
Conference ID: 1346459
A telephonic replay will be available following the call through August 4, 2016 by dialing:
Domestic: 1-877-344-7529
International: 1-412-317-0088
Replay ID: 10089389
ABOUT GROUP 1 AUTOMOTIVE, INC.
Group 1 owns and operates 161 automotive dealerships, 212 franchises, and 37 collision centers in the United States, the United Kingdom and Brazil that offer 33 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
Certain statements in this release may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These 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. 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. 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," "plans," "believes," "may" or "will" and similar expressions. 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 performance 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. Management believes that these non-GAAP financial performance measures improve the transparency of the Company's disclosure, present useful information to investors, and 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 June 30,
---------------------------
2016 2015 % Increase/
(Decrease)
----------
REVENUES:
New vehicle retail sales $1,540,759 $1,534,262 0.4
Used vehicle retail sales 715,778 682,294 4.9
Used vehicle wholesale
sales 96,279 101,512 (5.2)
Parts and service 322,073 303,193 6.2
Finance and insurance 107,560 105,219 2.2
------- -------
Total revenues 2,782,449 2,726,480 2.1
COST OF SALES:
New vehicle retail sales 1,459,611 1,458,132 0.1
Used vehicle retail sales 667,513 636,235 4.9
Used vehicle wholesale
sales 96,331 102,445 (6.0)
Parts and service 148,875 138,095 7.8
------- -------
Total cost of sales 2,372,330 2,334,907 1.6
GROSS PROFIT 410,119 391,573 4.7
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 299,022 280,568 6.6
DEPRECIATION AND
AMORTIZATION EXPENSE 12,713 11,946 6.4
ASSET IMPAIRMENTS 1,024 1,039 (1.4)
OPERATING INCOME 97,360 98,020 (0.7)
OTHER EXPENSE:
Floorplan interest expense (11,593) (10,015) 15.8
Other interest expense,
net (16,705) (14,228) 17.4
INCOME BEFORE INCOME TAXES 69,062 73,777 (6.4)
PROVISION FOR INCOME TAXES (22,482) (27,467) (18.1)
NET INCOME $46,580 $46,310 0.6
======= =======
Less: Earnings allocated
to participating
securities $1,884 $1,792 5.1
Earnings available to
diluted common shares $44,696 $44,518 0.4
======= =======
DILUTED EARNINGS PER SHARE $2.12 $1.91 11.0
Weighted average dilutive
common shares outstanding 21,070 23,315 (9.6)
Weighted average
participating securities 892 944 (5.5)
--- ---
Total weighted average
shares outstanding 21,962 24,259 (9.5)
Six Months Ended June 30,
-------------------------
2016 2015 % Increase/
(Decrease)
----------
REVENUES:
New vehicle retail sales $2,950,609 $2,866,986 2.9
Used vehicle retail sales 1,403,949 1,305,487 7.5
Used vehicle wholesale
sales 197,871 201,704 (1.9)
Parts and service 630,665 585,382 7.7
Finance and insurance 207,710 199,775 4.0
Total revenues 5,390,804 5,159,334 4.5
COST OF SALES:
New vehicle retail sales 2,797,734 2,721,125 2.8
Used vehicle retail sales 1,306,484 1,213,307 7.7
Used vehicle wholesale
sales 196,474 199,958 (1.7)
Parts and service 290,891 269,487 7.9
Total cost of sales 4,591,583 4,403,877 4.3
GROSS PROFIT 799,221 755,457 5.8
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 592,687 552,037 7.4
DEPRECIATION AND
AMORTIZATION EXPENSE 25,177 23,630 6.5
ASSET IMPAIRMENTS 1,956 1,039 88.3
OPERATING INCOME 179,401 178,751 0.4
OTHER EXPENSE:
Floorplan interest expense (22,603) (19,362) 16.7
Other interest expense,
net (33,634) (28,139) 19.5
INCOME BEFORE INCOME TAXES 123,164 131,250 (6.2)
PROVISION FOR INCOME TAXES (42,293) (49,126) (13.9)
NET INCOME $80,871 $82,124 (1.5)
======= =======
Less: Earnings allocated
to participating
securities $3,223 $3,176 1.5
Earnings available to
diluted common shares $77,648 $78,948 (1.6)
======= =======
DILUTED EARNINGS PER SHARE $3.57 $3.38 5.6
Weighted average dilutive
common shares outstanding 21,762 23,380 (6.9)
Weighted average
participating securities 907 938 (3.3)
--- ---
Total weighted average
shares outstanding 22,669 24,318 (6.8)
Group 1 Automotive, Inc.
Consolidated Balance Sheets
(Unaudited)
(Dollars in thousands)
June 30, December 31, % Increase/
2016 2015 (Decrease)
---- ---- ---------
ASSETS:
CURRENT ASSETS:
Cash and cash equivalents $24,965 $13,037 91.5
Contracts in transit and vehicle
receivables, net 212,304 252,438 (15.9)
Accounts and notes receivable, net 151,655 157,768 (3.9)
Inventories, net 1,784,114 1,737,751 2.7
Prepaid expenses and other current assets 28,919 27,376 5.6
------ ------
Total current assets 2,201,957 2,188,370 0.6
PROPERTY AND EQUIPMENT, net 1,081,232 1,033,981 4.6
GOODWILL AND INTANGIBLE FRANCHISE RIGHTS 1,204,955 1,162,503 3.7
OTHER ASSETS 12,656 11,862 6.7
Total assets $4,500,800 $4,396,716 2.4
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES:
Floorplan notes payable -credit facility
and other $1,239,220 $1,265,719 (2.1)
Offset account related to floorplan notes
payable -credit facility (35,461) (110,759) (68.0)
Floorplan notes payable -manufacturer
affiliates 397,295 389,071 2.1
Offset account related to floorplan notes
payable -manufacturer affiliates (27,500) (25,500) 7.8
Current maturities of long-term debt and
short-term financing 42,993 54,991 (21.8)
Accounts payable 313,219 280,423 11.7
Accrued expenses 182,108 185,323 (1.7)
Total current liabilities 2,111,874 2,039,268 3.6
5.00% SENIOR NOTES (principal of $550,000
at June 30, 2016 and December 31, 2015,
respectively) 539,690 538,933 0.1
5.25% SENIOR NOTES (principal of $300,000
at June 30, 2016 and December 31, 2015,
respectively) 295,320 295,156 0.1
ACQUISITION LINE 10,000 - 100.0
REAL ESTATE RELATED AND OTHER LONG-TERM
DEBT, net of current maturities 360,141 317,290 13.5
CAPITAL LEASE OBLIGATIONS RELATED TO REAL
ESTATE, net of current maturities 45,789 48,155 (4.9)
DEFERRED INCOME TAXES 140,462 136,644 2.8
LIABILITIES FROM INTEREST RATE RISK
MANAGEMENT ACTIVITIES 49,438 31,153 58.7
OTHER LIABILITIES 80,534 71,865 12.1
STOCKHOLDERS' EQUITY:
Common stock 257 257 -
Additional paid-in capital 284,887 291,092 (2.1)
Retained earnings 996,944 926,169 7.6
Accumulated other comprehensive loss (154,404) (137,984) 11.9
Treasury stock (260,132) (161,282) 61.3
Total stockholders' equity 867,552 918,252 (5.5)
------- -------
Total liabilities and stockholders' equity $4,500,800 $4,396,716 2.4
========== ==========
Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2016 (%) 2015 (%) 2016 (%) 2015 (%)
------- ------- ------- -------
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
Region Geographic Market
------ -----------------
East Massachusetts 5.0 6.5 4.9 6.2
Georgia 4.1 4.6 4.0 4.6
Florida 2.6 2.3 2.5 1.8
New Hampshire 1.9 2.0 1.8 1.9
New Jersey 1.6 2.4 1.6 2.3
Mississippi 1.6 1.5 1.5 1.5
Louisiana 1.4 1.6 1.4 1.6
South Carolina 1.4 1.4 1.4 1.4
Alabama 0.9 0.7 0.9 0.8
Maryland 0.5 0.5 0.5 0.5
21.0 23.5 20.5 22.6
West Texas 36.5 38.5 36.6 38.6
California 9.3 10.1 9.2 9.8
Oklahoma 6.8 7.5 7.0 7.6
Kansas 1.9 2.1 1.9 2.1
Louisiana 0.6 0.7 0.6 0.7
55.1 58.9 55.3 58.8
International United Kingdom 18.0 10.5 18.0 10.9
Brazil 5.9 7.1 6.2 7.7
100.0 100.0 100.0 100.0
===== ===== ===== =====
NEW VEHICLE UNIT SALES BRAND MIX:
---------------------------------
Toyota/Scion/Lexus 24.8 26.9 24.3 26.5
BMW/MINI 13.5 11.3 13.3 11.5
Ford/Lincoln 10.9 11.2 11.2 11.6
Volkswagen/Audi/Porsche 10.9 7.2 10.8 6.6
Honda/Acura 10.4 10.8 10.4 10.8
Chevrolet/GMC/Buick/Cadillac 7.6 7.3 7.7 7.4
Nissan 6.2 8.2 7.0 8.7
Hyundai/Kia 4.3 6.4 4.5 6.0
Mercedes-Benz/smart/Sprinter 4.3 4.3 4.0 4.2
Chrysler/Dodge/Jeep/RAM 4.1 4.8 4.1 4.6
Other 3.0 1.6 2.7 2.1
100.0 100.0 100.0 100.0
===== ===== ===== =====
Group 1 Automotive, Inc.
Additional Information - U.S.
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended June 30,
---------------------------
2016 2015 % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail sales $1,203,311 $1,279,569 (6.0)
Used vehicle retail sales 575,280 572,533 0.5
Used vehicle wholesale sales 62,062 73,493 (15.6)
------ ------
Total used 637,342 646,026 (1.3)
Parts and service 270,525 264,063 2.4
Finance and insurance 96,204 97,789 (1.6)
------ ------
Total $2,207,382 $2,287,447 (3.5)
GROSS MARGIN %:
New vehicle retail sales 5.1 4.6
Used vehicle retail sales 7.0 7.0
Used vehicle wholesale sales - (0.6)
Total used 6.3 6.2
Parts and service 54.2 55.0
Finance and insurance 100.0 100.0
Total 15.6 15.0
GROSS PROFIT:
New vehicle retail sales $61,640 $59,434 3.7
Used vehicle retail sales 40,184 40,301 (0.3)
Used vehicle wholesale sales 27 (457) 105.9
--- ----
Total used 40,211 39,844 0.9
Parts and service 146,541 145,117 1.0
Finance and insurance 96,204 97,789 (1.6)
------ ------
Total $344,596 $342,184 0.7
UNITS SOLD:
Retail new vehicles sold 33,191 36,882 (10.0)
Retail used vehicles sold 26,856 26,835 0.1
Wholesale used vehicles sold 9,476 11,265 (15.9)
----- ------
Total used 36,332 38,100 (4.6)
AVERAGE RETAIL SALES PRICE:
New vehicle retail $36,254 $34,694 4.5
Used vehicle retail $21,421 $21,335 0.4
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales $1,857 $1,611 15.3
Used vehicle retail sales 1,496 1,502 (0.4)
Used vehicle wholesale sales 3 (41) 107.3
Total used 1,107 1,046 5.8
Finance and insurance (per
retail unit) $1,602 $1,535 4.4
OTHER:
SG&A expenses $245,389 $239,863 2.3
Adjusted SG&A expenses(1) $242,370 $238,964 1.4
SG&A as % revenues 11.1 10.5
Adjusted SG&A as % revenues
(1) 11.0 10.4
SG&A as % gross profit 71.2 70.1
Adjusted SG&A as % gross
profit (1) 70.3 69.8
Operating margin % 4.0 4.0
Adjusted operating margin %
(1) 4.1 4.1
Pretax margin % 2.8 3.0
Adjusted pretax margin % (1) 3.0 3.1
INTEREST EXPENSE:
Floorplan interest expense $(10,401) $(8,958) 16.1
Floorplan assistance 12,100 12,583 (3.8)
------ ------
Net floorplan income
(expense) $1,699 $3,625 (53.1)
Other interest income
(expense), net $(15,357) $(13,073) 17.5
Six Months Ended June 30,
-------------------------
2016 2015 % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail sales $2,303,703 $2,366,728 (2.7)
Used vehicle retail sales 1,134,044 1,084,506 4.6
Used vehicle wholesale sales 130,935 142,871 (8.4)
------- -------
Total used 1,264,979 1,227,377 3.1
Parts and service 533,983 507,007 5.3
Finance and insurance 186,350 184,835 0.8
------- -------
Total $4,289,015 $4,285,947 0.1
GROSS MARGIN %:
New vehicle retail sales 5.0 4.8
Used vehicle retail sales 7.4 7.5
Used vehicle wholesale sales 0.7 1.2
Total used 6.7 6.7
Parts and service 54.4 54.5
Finance and insurance 100.0 100.0
Total 15.8 15.3
GROSS PROFIT:
New vehicle retail sales $115,787 $113,121 2.4
Used vehicle retail sales 83,639 80,853 3.4
Used vehicle wholesale sales 871 1,688 (48.4)
--- -----
Total used 84,510 82,541 2.4
Parts and service 290,660 276,175 5.2
Finance and insurance 186,350 184,835 0.8
------- -------
Total $677,307 $656,672 3.1
UNITS SOLD:
Retail new vehicles sold 63,992 68,320 (6.3)
Retail used vehicles sold 53,687 51,983 3.3
Wholesale used vehicles sold 19,889 21,809 (8.8)
------ ------
Total used 73,576 73,792 (0.3)
AVERAGE RETAIL SALES PRICE:
New vehicle retail $36,000 $34,642 3.9
Used vehicle retail $21,123 $20,863 1.2
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales $1,809 $1,656 9.2
Used vehicle retail sales 1,558 1,555 0.2
Used vehicle wholesale sales 44 77 (42.9)
Total used 1,149 1,119 2.7
Finance and insurance (per
retail unit) $1,584 $1,536 3.1
OTHER:
SG&A expenses $491,229 $469,836 4.6
Adjusted SG&A expenses(1) $486,456 $468,937 3.7
SG&A as % revenues 11.5 11.0
Adjusted SG&A as % revenues
(1) 11.3 10.9
SG&A as % gross profit 72.5 71.5
Adjusted SG&A as % gross
profit (1) 71.8 71.4
Operating margin % 3.8 3.9
Adjusted operating margin %
(1) 4.0 3.9
Pretax margin % 2.6 2.9
Adjusted pretax margin % (1) 2.8 2.9
INTEREST EXPENSE:
Floorplan interest expense $(20,449) $(17,476) 17.0
Floorplan assistance 23,351 23,159 0.8
------ ------
Net floorplan income
(expense) $2,902 $5,683 (48.9)
Other interest income
(expense), net $(30,870) $(25,797) 19.7
(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 - U.K.
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended June 30,
2016 2015 % Increase/ Local Currency
(Decrease) % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail sales $262,028 $160,245 63.5 74.7
Used vehicle retail sales 122,827 91,172 34.7 43.8
Used vehicle wholesale sales 33,367 25,756 29.6 38.3
------ ------
Total used 156,194 116,928 33.6 42.5
Parts and service 39,949 25,202 58.5 69.3
Finance and insurance 9,621 5,792 66.1 77.7
----- -----
Total $467,792 $308,167 51.8 62.1
GROSS MARGIN %:
New vehicle retail sales 5.9 6.1
Used vehicle retail sales 5.6 5.4
Used vehicle wholesale sales (0.3) (2.5)
Total used 4.3 3.6
Parts and service 56.3 55.8
Finance and insurance 100.0 100.0
Total 11.6 11.0
GROSS PROFIT:
New vehicle retail sales $15,462 $9,792 57.9 70.0
Used vehicle retail sales 6,854 4,894 40.0 49.1
Used vehicle wholesale sales (114) (632) 82.0 80.2
---- ----
Total used 6,740 4,262 58.1 68.2
Parts and service 22,505 14,070 60.0 71.0
Finance and insurance 9,621 5,792 66.1 77.7
----- -----
Total $54,328 $33,916 60.2 71.5
UNITS SOLD:
Retail new vehicles sold 7,868 4,686 67.9
Retail used vehicles sold 5,006 3,638 37.6
Wholesale used vehicles sold 3,997 2,956 35.2
----- -----
Total used 9,003 6,594 36.5
AVERAGE RETAIL SALES PRICE:
New vehicle retail $33,303 $34,197 (2.6) 4.1
Used vehicle retail $24,536 $25,061 (2.1) 4.5
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales $1,965 $2,090 (6.0) 1.2
Used vehicle retail sales 1,369 1,345 1.8 8.3
Used vehicle wholesale sales (29) (214) 86.4 85.4
Total used 749 646 15.9 23.2
Finance and insurance (per
retail unit) $747 $696 7.3 14.9
OTHER:
SG&A expenses $42,109 $26,641 58.1 68.8
Adjusted SG&A expenses(1) $42,109 $26,433 59.3 70.1
SG&A as % revenues 9.0 8.6
Adjusted SG&A as % revenues
(1) 9.0 8.6
SG&A as % gross profit 77.5 78.5
Adjusted SG&A as % gross
profit (1) 77.5 77.9
Operating margin % 2.2 2.0
Adjusted operating margin %
(1) 2.2 2.1
Pretax margin % 1.7 1.6
Adjusted pretax margin % (1) 1.7 1.6
INTEREST EXPENSE:
Floorplan interest expense $(1,134) $(555) 104.3 118.5
Floorplan assistance 225 198 13.6 20.8
--- ---
Net floorplan income
(expense) $(909) $(357) 154.6 172.7
Other interest income
(expense), net $(1,385) $(824) 68.1 79.6
Six Months Ended June 30,
-------------------------
2016 2015 % Increase/ Local Currency
(Decrease) % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail sales $508,564 $311,456 63.3 73.4
Used vehicle retail sales 232,944 180,308 29.2 37.3
Used vehicle wholesale sales 65,399 53,834 21.5 29.1
------ ------
Total used 298,343 234,142 27.4 35.4
Parts and service 74,498 50,790 46.7 56.0
Finance and insurance 18,283 11,320 61.5 71.8
------ ------
Total $899,688 $607,708 48.0 57.3
GROSS MARGIN %:
New vehicle retail sales 5.8 6.3
Used vehicle retail sales 5.2 5.3
Used vehicle wholesale sales 0.7 (0.6)
Total used 4.2 3.9
Parts and service 55.0 54.7
Finance and insurance 100.0 100.0
Total 11.2 11.2
GROSS PROFIT:
New vehicle retail sales $29,316 $19,742 48.5 58.1
Used vehicle retail sales 12,064 9,532 26.6 34.4
Used vehicle wholesale sales 458 (311) 247.3 264.1
--- ----
Total used 12,522 9,221 35.8 44.4
Parts and service 40,953 27,791 47.4 56.8
Finance and insurance 18,283 11,320 61.5 71.8
------ ------
Total $101,074 $68,074 48.5 57.9
UNITS SOLD:
Retail new vehicles sold 15,226 9,195 65.6
Retail used vehicles sold 9,601 7,281 31.9
Wholesale used vehicles sold 7,639 5,891 29.7
----- -----
Total used 17,240 13,172 30.9
AVERAGE RETAIL SALES PRICE:
New vehicle retail $33,401 $33,872 (1.4) 4.7
Used vehicle retail $24,262 $24,764 (2.0) 4.1
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales $1,925 $2,147 (10.3) (4.5)
Used vehicle retail sales 1,257 1,309 (4.0) 1.9
Used vehicle wholesale sales 60 (53) 213.2 226.5
Total used 726 700 3.7 10.3
Finance and insurance (per
retail unit) $736 $687 7.1 14.0
OTHER:
SG&A expenses $79,545 $53,403 49.0 58.4
Adjusted SG&A expenses(1) $78,984 $53,195 48.5 57.9
SG&A as % revenues 8.8 8.8
Adjusted SG&A as % revenues
(1) 8.8 8.8
SG&A as % gross profit 78.7 78.4
Adjusted SG&A as % gross
profit (1) 78.1 78.1
Operating margin % 2.0 2.1
Adjusted operating margin %
(1) 2.1 2.1
Pretax margin % 1.5 1.6
Adjusted pretax margin % (1) 1.6 1.7
INTEREST EXPENSE:
Floorplan interest expense $(2,054) $(1,065) 92.9 105.4
Floorplan assistance 488 383 27.4 35.2
--- ---
Net floorplan income
(expense) $(1,566) $(682) 129.6 144.8
Other interest income
(expense), net $(2,667) $(1,559) 71.1 82.0
(1)These amounts have been adjusted
to exclude the impact of certain
items to provide additional
information regarding the
performance of our operations and
improve period-to-period
comparability. Refer to our
Reconciliation of Certain Non-GAAP
Financial Measures for a description
of the aforementioned adjustments.
Group 1 Automotive, Inc.
Additional Information - Brazil
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended June 30,
2016 2015 % Increase/ Local Currency
(Decrease) % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail sales $75,420 $94,448 (20.1) (9.0)
Used vehicle retail sales 17,671 18,589 (4.9) 8.5
Used vehicle wholesale sales 850 2,263 (62.4) (57.4)
--- -----
Total used 18,521 20,852 (11.2) 1.3
Parts and service 11,599 13,928 (16.7) (5.1)
Finance and insurance 1,735 1,638 5.9 20.8
----- -----
Total $107,275 $130,866 (18.0) (6.5)
GROSS MARGIN %:
New vehicle retail sales 5.4 7.3
Used vehicle retail sales 6.9 4.6
Used vehicle wholesale sales 4.1 6.9
Total used 6.8 4.9
Parts and service 35.8 42.4
Finance and insurance 100.0 100.0
Total 10.4 11.8
GROSS PROFIT:
New vehicle retail sales $4,046 $6,904 (41.4) (33.2)
Used vehicle retail sales 1,227 864 42.0 61.9
Used vehicle wholesale sales 35 156 (77.6) (74.0)
--- ---
Total used 1,262 1,020 23.7 41.1
Parts and service 4,152 5,911 (29.8) (19.8)
Finance and insurance 1,735 1,638 5.9 20.8
----- -----
Total $11,195 $15,473 (27.6) (17.4)
UNITS SOLD:
Retail new vehicles sold 2,585 3,197 (19.1)
Retail used vehicles sold 1,089 966 12.7
Wholesale used vehicles sold 211 406 (48.0)
--- ---
Total used 1,300 1,372 (5.2)
AVERAGE RETAIL SALES PRICE:
New vehicle retail $29,176 $29,543 (1.2) 12.6
Used vehicle retail $16,227 $19,243 (15.7) (3.8)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales $1,565 $2,160 (27.5) (17.3)
Used vehicle retail sales 1,127 894 26.1 43.6
Used vehicle wholesale sales 166 384 (56.8) (49.9)
Total used 971 743 30.7 48.9
Finance and insurance (per
retail unit) $472 $393 20.1 36.9
OTHER:
SG&A expenses $11,524 $14,063 (18.1) (6.6)
Adjusted SG&A expenses(1) $11,524 $14,063 (18.1) (6.6)
SG&A as % revenues 10.7 10.7
Adjusted SG&A as % revenues
(1) 10.7 10.7
SG&A as % gross profit 102.9 90.9
Adjusted SG&A as % gross
profit (1) 102.9 90.9
Operating margin % (0.6) 0.3
Adjusted operating margin %
(1) (0.6) 0.7
Pretax margin % (0.6) (0.4)
Adjusted pretax margin % (1) (0.6) -
INTEREST EXPENSE:
Floorplan interest expense $(58) $(502) (88.4) (86.8)
Floorplan assistance - - - -
--- ---
Net floorplan income
(expense) $(58) $(502) (88.4) (86.8)
Other interest income
(expense), net $37 $(331) (111.2) (112.6)
Six Months Ended June 30,
-------------------------
2016 2015 % Increase/ Local Currency
(Decrease) % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail sales $138,342 $188,802 (26.7) (9.0)
Used vehicle retail sales 36,961 40,673 (9.1) 14.7
Used vehicle wholesale sales 1,537 4,999 (69.3) (61.5)
----- -----
Total used 38,498 45,672 (15.7) 6.3
Parts and service 22,184 27,585 (19.6) -
Finance and insurance 3,077 3,620 (15.0) 5.9
----- -----
Total $202,101 $265,679 (23.9) (5.3)
GROSS MARGIN %:
New vehicle retail sales 5.6 6.9
Used vehicle retail sales 4.8 4.4
Used vehicle wholesale sales 4.4 7.4
Total used 4.8 4.7
Parts and service 36.8 43.2
Finance and insurance 100.0 100.0
Total 10.3 11.6
GROSS PROFIT:
New vehicle retail sales $7,772 $12,998 (40.2) (25.6)
Used vehicle retail sales 1,762 1,795 (1.8) 21.4
Used vehicle wholesale sales 68 369 (81.6) (76.6)
--- ---
Total used 1,830 2,164 (15.4) 4.6
Parts and service 8,161 11,929 (31.6) (14.5)
Finance and insurance 3,077 3,620 (15.0) 5.9
----- -----
Total $20,840 $30,711 (32.1) (15.5)
UNITS SOLD:
Retail new vehicles sold 5,207 6,489 (19.8)
Retail used vehicles sold 2,454 2,158 13.7
Wholesale used vehicles sold 522 867 (39.8)
--- ---
Total used 2,976 3,025 (1.6)
AVERAGE RETAIL SALES PRICE:
New vehicle retail $26,568 $29,096 (8.7) 13.4
Used vehicle retail $15,062 $18,848 (20.1) 0.8
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales $1,493 $2,003 (25.5) (7.2)
Used vehicle retail sales 718 832 (13.7) 6.7
Used vehicle wholesale sales 130 426 (69.5) (61.1)
Total used 615 715 (14.0) 6.4
Finance and insurance (per
retail unit) $402 $419 (4.1) 19.6
OTHER:
SG&A expenses $21,913 $28,798 (23.9) (5.1)
Adjusted SG&A expenses(1) $21,542 $28,798 (25.2) (6.8)
SG&A as % revenues 10.8 10.8
Adjusted SG&A as % revenues
(1) 10.7 10.8
SG&A as % gross profit 105.2 93.8
Adjusted SG&A as % gross
profit (1) 103.4 93.8
Operating margin % (1.0) 0.1
Adjusted operating margin %
(1) (0.6) 0.3
Pretax margin % (1.1) (0.5)
Adjusted pretax margin % (1) (0.7) (0.3)
INTEREST EXPENSE:
Floorplan interest expense $(100) $(821) (87.8) (84.8)
Floorplan assistance - - - -
--- ---
Net floorplan income
(expense) $(100) $(821) (87.8) (84.8)
Other interest income
(expense), net $(97) $(784) (87.6) (82.6)
(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 - Consolidated
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended June 30,
2016 2015 % Increase/ Local Currency
(Decrease) % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail sales $1,540,759 $1,534,262 0.4 2.3
Used vehicle retail sales 715,778 682,294 4.9 6.5
Used vehicle wholesale sales 96,279 101,512 (5.2) (2.8)
------ -------
Total used 812,057 783,806 3.6 5.3
Parts and service 322,073 303,193 6.2 7.7
Finance and insurance 107,560 105,219 2.2 3.1
------- -------
Total $2,782,449 $2,726,480 2.1 3.8
GROSS MARGIN %:
New vehicle retail sales 5.3 5.0
Used vehicle retail sales 6.7 6.8
Used vehicle wholesale sales (0.1) (0.9)
Total used 5.9 5.8
Parts and service 53.8 54.5
Finance and insurance 100.0 100.0
Total 14.7 14.4
GROSS PROFIT:
New vehicle retail sales $81,148 $76,130 6.6 8.9
Used vehicle retail sales 48,265 46,059 4.8 6.1
Used vehicle wholesale sales (52) (933) 94.4 93.8
--- ----
Total used 48,213 45,126 6.8 8.2
Parts and service 173,198 165,098 4.9 6.2
Finance and insurance 107,560 105,219 2.2 3.1
------- -------
Total $410,119 $391,573 4.7 6.1
UNITS SOLD:
Retail new vehicles sold 43,644 44,765 (2.5)
Retail used vehicles sold 32,951 31,439 4.8
Wholesale used vehicles sold 13,684 14,627 (6.4)
------ ------
Total used 46,635 46,066 1.2
AVERAGE RETAIL SALES PRICE:
New vehicle retail $35,303 $34,274 3.0 4.9
Used vehicle retail $21,722 $21,702 0.1 1.6
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales $1,859 $1,701 9.3 11.7
Used vehicle retail sales 1,465 1,465 0.0 1.3
Used vehicle wholesale sales (4) (64) 93.8 93.3
Total used 1,034 980 5.5 6.9
Finance and insurance (per
retail unit) $1,404 $1,381 1.7 2.6
OTHER:
SG&A expenses $299,022 $280,567 6.6 8.2
Adjusted SG&A expenses(1) $296,003 $279,460 5.9 7.5
SG&A as % revenues 10.7 10.3
Adjusted SG&A as % revenues
(1) 10.6 10.2
SG&A as % gross profit 72.9 71.7
Adjusted SG&A as % gross
profit (1) 72.2 71.4
Operating margin % 3.5 3.6
Adjusted operating margin %
(1) 3.6 3.7
Pretax margin % 2.5 2.7
Adjusted pretax margin % (1) 2.6 2.8
INTEREST EXPENSE:
Floorplan interest expense $(11,593) $(10,015) 15.8 16.6
Floorplan assistance 12,325 12,781 (3.6) (3.6)
------ ------
Net floorplan income
(expense) $732 $2,766 (73.5) (76.6)
Other interest income
(expense), net $(16,705) $(14,228) 17.4 18.0
Six Months Ended June 30,
2016 2015 % Increase/ Local Currency
(Decrease) % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail sales $2,950,609 $2,866,986 2.9 5.2
Used vehicle retail sales 1,403,949 1,305,487 7.5 9.4
Used vehicle wholesale sales 197,871 201,704 (1.9) 0.3
------- -------
Total used 1,601,820 1,507,191 6.3 8.2
Parts and service 630,665 585,382 7.7 9.5
Finance and insurance 207,710 199,775 4.0 4.9
------- -------
Total $5,390,804 $5,159,334 4.5 6.5
GROSS MARGIN %:
New vehicle retail sales 5.2 5.1
Used vehicle retail sales 6.9 7.1
Used vehicle wholesale sales 0.7 0.9
Total used 6.2 6.2
Parts and service 53.9 54.0
Finance and insurance 100.0 100.0
Total 14.8 14.6
GROSS PROFIT:
New vehicle retail sales $152,875 $145,861 4.8 7.4
Used vehicle retail sales 97,465 92,180 5.7 7.0
Used vehicle wholesale sales 1,397 1,746 (20.0) (15.9)
----- -----
Total used 98,862 93,926 5.3 6.6
Parts and service 339,774 315,895 7.6 9.0
Finance and insurance 207,710 199,775 4.0 4.9
------- -------
Total $799,221 $755,457 5.8 7.3
UNITS SOLD:
Retail new vehicles sold 84,425 84,004 0.5
Retail used vehicles sold 65,742 61,422 7.0
Wholesale used vehicles sold 28,050 28,567 (1.8)
------ ------
Total used 93,792 89,989 4.2
AVERAGE RETAIL SALES PRICE:
New vehicle retail $34,949 $34,129 2.4 4.7
Used vehicle retail $21,355 $21,254 0.5 2.2
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales $1,811 $1,736 4.3 6.9
Used vehicle retail sales 1,483 1,501 (1.2) -
Used vehicle wholesale sales 50 61 (18.0) (14.4)
Total used 1,054 1,044 1.0 2.2
Finance and insurance (per
retail unit) $1,383 $1,374 0.7 1.6
OTHER:
SG&A expenses $592,687 $552,037 7.4 9.3
Adjusted SG&A expenses(1) $586,983 $550,930 6.5 8.4
SG&A as % revenues 11.0 10.7
Adjusted SG&A as % revenues
(1) 10.9 10.7
SG&A as % gross profit 74.2 73.1
Adjusted SG&A as % gross
profit (1) 73.4 72.9
Operating margin % 3.3 3.5
Adjusted operating margin %
(1) 3.5 3.5
Pretax margin % 2.3 2.5
Adjusted pretax margin % (1) 2.4 2.6
INTEREST EXPENSE:
Floorplan interest expense $(22,603) $(19,362) 16.7 17.5
Floorplan assistance 23,839 23,542 1.3 1.3
------ ------
Net floorplan income
(expense) $1,236 $4,180 (70.4) (74.2)
Other interest income
(expense), net $(33,634) $(28,139) 19.5 20.3
(1)These amounts have been adjusted
to exclude the impact of certain
items to provide additional
information regarding the
performance of our operations and
improve period-to-period
comparability. Refer to our
Reconciliation of Certain Non-GAAP
Financial Measures for a description
of the aforementioned adjustments.
Group 1 Automotive, Inc.
Additional Information - Same Store U.S. (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended June 30,
---------------------------
2016 2015 % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail
sales $1,181,468 $1,249,136 (5.4)
Used vehicle retail
sales 565,026 560,972 0.7
Used vehicle wholesale
sales 61,047 71,101 (14.1)
------ ------
Total used 626,073 632,073 (0.9)
Parts and service 266,069 256,783 3.6
Finance and insurance 94,476 96,357 (2.0)
------ ------
Total $2,168,086 $2,234,349 (3.0)
GROSS MARGIN %:
New vehicle retail
sales 5.1 4.6
Used vehicle retail
sales 7.0 7.1
Used vehicle wholesale
sales - (0.5)
Total used 6.3 6.2
Parts and service 54.0 54.9
Finance and insurance 100.0 100.0
Total 15.6 15.0
GROSS PROFIT:
New vehicle retail
sales $60,242 $57,689 4.4
Used vehicle retail
sales 39,567 39,628 (0.2)
Used vehicle wholesale
sales (3) (354) 99.2
--- ----
Total used 39,564 39,274 0.7
Parts and service 143,717 141,009 1.9
Finance and insurance 94,476 96,357 (2.0)
------ ------
Total $337,999 $334,329 1.1
UNITS SOLD:
Retail new vehicles
sold 32,756 36,082 (9.2)
Retail used vehicles
sold 26,524 26,367 0.6
Wholesale used vehicles
sold 9,368 10,955 (14.5)
----- ------
Total used 35,892 37,322 (3.8)
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $36,069 $34,619 4.2
Used vehicle retail $21,302 $21,276 0.1
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $1,839 $1,599 15.0
Used vehicle retail
sales 1,492 1,503 (0.7)
Used vehicle wholesale
sales - (32) 100.0
Total used 1,102 1,052 4.8
Finance and insurance
(per retail unit) $1,594 $1,543 3.3
OTHER:
SG&A expenses $241,144 $234,247 2.9
Adjusted SG&A
expenses(2) $238,125 $231,932 2.7
SG&A as % revenues 11.1 10.5
Adjusted SG&A as %
revenues (2) 11.0 10.4
SG&A as % gross profit 71.3 70.1
Adjusted SG&A as %
gross profit (2) 70.5 69.4
Operating margin % 3.9 4.0
Adjusted operating
margin % (2) 4.1 4.1
Six Months Ended June 30,
-------------------------
2016 2015 % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail
sales $2,242,595 $2,317,539 (3.2)
Used vehicle retail
sales 1,103,647 1,063,036 3.8
Used vehicle wholesale
sales 126,125 138,481 (8.9)
------- -------
Total used 1,229,772 1,201,517 2.4
Parts and service 521,024 494,481 5.4
Finance and insurance 182,074 182,463 (0.2)
------- -------
Total $4,175,465 $4,196,000 (0.5)
GROSS MARGIN %:
New vehicle retail
sales 5.0 4.8
Used vehicle retail
sales 7.4 7.5
Used vehicle wholesale
sales 0.9 1.3
Total used 6.7 6.8
Parts and service 54.3 54.5
Finance and insurance 100.0 100.0
Total 15.8 15.3
GROSS PROFIT:
New vehicle retail
sales $112,085 $110,337 1.6
Used vehicle retail
sales 81,361 79,637 2.2
Used vehicle wholesale
sales 1,088 1,755 (38.0)
----- -----
Total used 82,449 81,392 1.3
Parts and service 283,098 269,295 5.1
Finance and insurance 182,074 182,463 (0.2)
------- -------
Total $659,706 $643,487 2.5
UNITS SOLD:
Retail new vehicles
sold 62,728 67,021 (6.4)
Retail used vehicles
sold 52,672 51,128 3.0
Wholesale used vehicles
sold 19,480 21,311 (8.6)
------ ------
Total used 72,152 72,439 (0.4)
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $35,751 $34,579 3.4
Used vehicle retail $20,953 $20,792 0.8
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $1,787 $1,646 8.6
Used vehicle retail
sales 1,545 1,558 (0.8)
Used vehicle wholesale
sales 56 82 (31.7)
Total used 1,143 1,124 1.7
Finance and insurance
(per retail unit) $1,578 $1,544 2.2
OTHER:
SG&A expenses $479,250 $458,591 4.5
Adjusted SG&A
expenses(2) $473,412 $456,276 3.8
SG&A as % revenues 11.5 10.9
Adjusted SG&A as %
revenues (2) 11.3 10.9
SG&A as % gross profit 72.6 71.3
Adjusted SG&A as %
gross profit (2) 71.8 70.9
Operating margin % 3.8 3.9
Adjusted operating
margin % (2) 4.0 4.0
(1) Same store amounts include the
results for the identical months in
each period presented in the
comparison, commencing with the
first full month we owned the
dealership and, in the case of
dispositions, ending with the last
full month we owned it. Same store
results also include the activities
of our corporate office.
(2)These amounts have been adjusted
to exclude the impact of certain
items to provide additional
information regarding the
performance of our operations and
improve period-to-period
comparability. Refer to our
Reconciliation of Certain Non-GAAP
Financial Measures for a description
of the aforementioned adjustments.
Group 1 Automotive, Inc.
Additional Information - Same Store U.K. (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended June 30,
2016 2015 % Increase/ Local Currency
(Decrease) % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail
sales $167,601 $160,246 4.6 11.8
Used vehicle retail
sales 90,470 91,172 (0.8) 5.9
Used vehicle wholesale
sales 24,789 25,755 (3.8) 2.7
------ ------
Total used 115,259 116,927 (1.4) 5.2
Parts and service 26,375 25,202 4.7 11.8
Finance and insurance 6,412 5,792 10.7 18.4
----- -----
Total $315,647 $308,167 2.4 9.4
GROSS MARGIN %:
New vehicle retail
sales 6.3 6.1
Used vehicle retail
sales 5.7 5.4
Used vehicle wholesale
sales (0.7) (2.5)
Total used 4.3 3.6
Parts and service 55.8 55.8
Finance and insurance 100.0 100.0
Total 11.6 11.0
GROSS PROFIT:
New vehicle retail
sales $10,578 $9,785 8.1 16.5
Used vehicle retail
sales 5,165 4,894 5.5 12.4
Used vehicle wholesale
sales (175) (632) 72.3 70.0
---- ----
Total used 4,990 4,262 17.1 24.6
Parts and service 14,726 14,070 4.7 11.9
Finance and insurance 6,412 5,792 10.7 18.4
----- -----
Total $36,706 $33,909 8.2 15.9
UNITS SOLD:
Retail new vehicles
sold 4,882 4,686 4.2
Retail used vehicles
sold 3,815 3,638 4.9
Wholesale used vehicles
sold 3,021 2,956 2.2
----- -----
Total used 6,836 6,594 3.7
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $34,330 $34,197 0.4 7.3
Used vehicle retail $23,714 $25,061 (5.4) 1.0
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $2,167 $2,088 3.8 11.8
Used vehicle retail
sales 1,354 1,345 0.7 7.2
Used vehicle wholesale
sales (58) (214) 72.9 70.7
Total used 730 646 13.0 20.2
Finance and insurance
(per retail unit) $737 $696 5.9 13.3
OTHER:
SG&A expenses $27,819 $26,653 4.4 11.5
Adjusted SG&A
expenses(2) $27,819 $26,445 5.2 12.3
SG&A as % revenues 8.8 8.6
Adjusted SG&A as %
revenues (2) 8.8 8.6
SG&A as % gross profit 75.8 78.6
Adjusted SG&A as %
gross profit (2) 75.8 78.0
Operating margin % 2.4 2.0
Adjusted operating
margin % (2) 2.4 2.1
Six Months Ended June 30,
2016 2015 % Increase/ Local Currency
(Decrease) % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail
sales $340,212 $311,457 9.2 16.0
Used vehicle retail
sales 181,986 180,308 0.9 7.3
Used vehicle wholesale
sales 49,577 53,833 (7.9) (2.2)
------ ------
Total used 231,563 234,141 (1.1) 5.1
Parts and service 52,112 50,790 2.6 9.1
Finance and insurance 13,099 11,320 15.7 23.0
------ ------
Total $636,986 $607,708 4.8 11.4
GROSS MARGIN %:
New vehicle retail
sales 6.1 6.3
Used vehicle retail
sales 5.3 5.3
Used vehicle wholesale
sales 0.8 (0.6)
Total used 4.3 3.9
Parts and service 55.2 54.7
Finance and insurance 100.0 100.0
Total 11.4 11.2
GROSS PROFIT:
New vehicle retail
sales $20,868 $19,736 5.7 12.6
Used vehicle retail
sales 9,608 9,531 0.8 7.0
Used vehicle wholesale
sales 412 (311) 232.5 248.1
--- ----
Total used 10,020 9,220 8.7 15.6
Parts and service 28,756 27,791 3.5 10.0
Finance and insurance 13,099 11,320 15.7 23.0
------ ------
Total $72,743 $68,067 6.9 13.7
UNITS SOLD:
Retail new vehicles
sold 10,003 9,195 8.8
Retail used vehicles
sold 7,711 7,281 5.9
Wholesale used vehicles
sold 6,060 5,891 2.9
----- -----
Total used 13,771 13,172 4.5
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $34,011 $33,872 0.4 6.6
Used vehicle retail $23,601 $24,764 (4.7) 1.3
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $2,086 $2,146 (2.8) 3.5
Used vehicle retail
sales 1,246 1,309 (4.8) 1.0
Used vehicle wholesale
sales 68 (53) 228.3 244.0
Total used 728 700 4.0 10.6
Finance and insurance
(per retail unit) $739 $687 7.6 14.4
OTHER:
SG&A expenses $55,280 $53,416 3.5 10.0
Adjusted SG&A
expenses(2) $54,719 $53,208 2.8 9.3
SG&A as % revenues 8.7 8.8
Adjusted SG&A as %
revenues (2) 8.6 8.8
SG&A as % gross profit 76.0 78.5
Adjusted SG&A as %
gross profit (2) 75.2 78.2
Operating margin % 2.4 2.1
Adjusted operating
margin % (2) 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 June 30,
---------------------------
2016 2015 % Increase/ Local Currency
(Decrease) % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail
sales $70,639 $88,007 (19.7) (8.4)
Used vehicle retail
sales 16,642 16,855 (1.3) 12.8
Used vehicle wholesale
sales 660 1,654 (60.1) (54.6)
--- -----
Total used 17,302 18,509 (6.5) 6.8
Parts and service 11,142 11,862 (6.1) 7.1
Finance and insurance 1,678 1,472 14.0 30.1
----- -----
Total $100,761 $119,850 (15.9) (4.1)
GROSS MARGIN %:
New vehicle retail
sales 5.4 7.4
Used vehicle retail
sales 7.1 4.3
Used vehicle wholesale
sales 7.1 7.2
Total used 7.1 4.6
Parts and service 37.2 42.8
Finance and insurance 100.0 100.0
Total 10.7 11.6
GROSS PROFIT:
New vehicle retail
sales $3,786 $6,538 (42.1) (33.9)
Used vehicle retail
sales 1,175 729 61.2 84.0
Used vehicle wholesale
sales 47 119 (60.5) (55.1)
--- ---
Total used 1,222 848 44.1 64.6
Parts and service 4,140 5,078 (18.5) (6.9)
Finance and insurance 1,678 1,472 14.0 30.1
----- -----
Total $10,826 $13,936 (22.3) (11.3)
UNITS SOLD:
Retail new vehicles
sold 2,445 2,832 (13.7)
Retail used vehicles
sold 1,045 833 25.5
Wholesale used vehicles
sold 165 314 (47.5)
--- ---
Total used 1,210 1,147 5.5
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $28,891 $31,076 (7.0) 6.1
Used vehicle retail $15,925 $20,234 (21.3) (10.1)
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $1,548 $2,309 (33.0) (23.4)
Used vehicle retail
sales 1,124 875 28.5 46.7
Used vehicle wholesale
sales 285 379 (24.8) (14.6)
Total used 1,010 739 36.7 56.0
Finance and insurance
(per retail unit) $481 $402 19.7 36.7
OTHER:
SG&A expenses $10,119 $11,667 (13.3) (1.1)
Adjusted SG&A
expenses(2) $10,119 $11,667 (13.3) (1.1)
SG&A as % revenues 10.0 9.7
Adjusted SG&A as %
revenues (2) 10.0 9.7
SG&A as % gross profit 93.5 83.7
Adjusted SG&A as %
gross profit (2) 93.5 83.7
Operating margin % 0.4 1.6
Adjusted operating
margin % (2) 0.4 1.6
Six Months Ended June 30,
2016 2015 % Increase/ Local Currency
(Decrease) % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail
sales $132,809 $178,446 (25.6) (7.4)
Used vehicle retail
sales 35,564 37,560 (5.3) 19.9
Used vehicle wholesale
sales 1,247 4,033 (69.1) (60.8)
----- -----
Total used 36,811 41,593 (11.5) 12.1
Parts and service 21,449 24,590 (12.8) 8.8
Finance and insurance 3,010 3,399 (11.4) 10.8
----- -----
Total $194,079 $248,028 (21.8) (2.3)
GROSS MARGIN %:
New vehicle retail
sales 5.7 7.0
Used vehicle retail
sales 4.9 4.2
Used vehicle wholesale
sales 6.6 7.4
Total used 5.0 4.5
Parts and service 37.6 43.8
Finance and insurance 100.0 100.0
Total 10.5 11.5
GROSS PROFIT:
New vehicle retail
sales $7,575 $12,406 (38.9) (23.8)
Used vehicle retail
sales 1,741 1,592 9.4 36.4
Used vehicle wholesale
sales 82 300 (72.7) (65.3)
--- ---
Total used 1,823 1,892 (3.6) 20.2
Parts and service 8,063 10,773 (25.2) (6.3)
Finance and insurance 3,010 3,399 (11.4) 10.8
----- -----
Total $20,471 $28,470 (28.1) (10.2)
UNITS SOLD:
Retail new vehicles
sold 5,004 5,911 (15.3)
Retail used vehicles
sold 2,362 1,903 24.1
Wholesale used vehicles
sold 456 698 (34.7)
--- ---
Total used 2,818 2,601 8.3
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $26,541 $30,189 (12.1) 9.4
Used vehicle retail $15,057 $19,737 (23.7) (3.4)
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $1,514 $2,099 (27.9) (10.0)
Used vehicle retail
sales 737 837 (11.9) 9.9
Used vehicle wholesale
sales 180 430 (58.1) (47.0)
Total used 647 727 (11.0) 11.0
Finance and insurance
(per retail unit) $409 $435 (6.0) 17.5
OTHER:
SG&A expenses $19,879 $24,443 (18.7) 1.9
Adjusted SG&A
expenses(2) $19,879 $24,443 (18.7) 1.9
SG&A as % revenues 10.2 9.9
Adjusted SG&A as %
revenues (2) 10.2 9.9
SG&A as % gross profit 97.1 85.9
Adjusted SG&A as %
gross profit (2) 97.1 85.9
Operating margin % (0.2) 1.4
Adjusted operating
margin % (2) - 1.4
(1) Same store amounts include the
results for the identical months in
each period presented in the
comparison, commencing with the
first full month we owned the
dealership and, in the case of
dispositions, ending with the last
full month we owned it. Same store
results also include the activities
of our corporate office.
(2)These amounts have been adjusted
to exclude the impact of certain
items to provide additional
information regarding the
performance of our operations and
improve period-to-period
comparability. Refer to our
Reconciliation of Certain Non-GAAP
Financial Measures for a description
of the aforementioned adjustments.
Group 1 Automotive, Inc.
Additional Information - Same Store Consolidated (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended June 30,
2016 2015 % Increase/ Local Currency
(Decrease) % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail
sales $1,419,708 $1,497,389 (5.2) (3.8)
Used vehicle retail
sales 672,138 668,999 0.5 1.7
Used vehicle wholesale
sales 86,496 98,510 (12.2) (10.4)
------ ------
Total used 758,634 767,509 (1.2) 0.2
Parts and service 303,586 293,847 3.3 4.5
Finance and insurance 102,566 103,621 (1.0) (0.4)
------- -------
Total $2,584,494 $2,662,366 (2.9) (1.6)
GROSS MARGIN %:
New vehicle retail
sales 5.3 4.9
Used vehicle retail
sales 6.8 6.8
Used vehicle wholesale
sales (0.2) (0.9)
Total used 6.0 5.8
Parts and service 53.6 54.5
Finance and insurance 100.0 100.0
Total 14.9 14.4
GROSS PROFIT:
New vehicle retail
sales $74,606 $74,012 0.8 2.6
Used vehicle retail
sales 45,907 45,251 1.4 2.6
Used vehicle wholesale
sales (131) (867) 84.9 84.0
---- ----
Total used 45,776 44,384 3.1 4.3
Parts and service 162,583 160,157 1.5 2.5
Finance and insurance 102,566 103,621 (1.0) (0.4)
------- -------
Total $385,531 $382,174 0.9 2.0
UNITS SOLD:
Retail new vehicles
sold 40,083 43,600 (8.1)
Retail used vehicles
sold 31,384 30,838 1.8
Wholesale used vehicles
sold 12,554 14,225 (11.7)
------ ------
Total used 43,938 45,063 (2.5)
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $35,419 $34,344 3.1 4.7
Used vehicle retail $21,417 $21,694 (1.3) -
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $1,861 $1,698 9.6 11.6
Used vehicle retail
sales 1,463 1,467 (0.3) 0.8
Used vehicle wholesale
sales (10) (61) 83.6 81.9
Total used 1,042 985 5.8 6.9
Finance and insurance
(per retail unit) $1,435 $1,392 3.1 3.8
OTHER:
SG&A expenses $279,082 $272,567 2.4 3.6
Adjusted SG&A
expenses(2) $276,063 $270,044 2.2 3.5
SG&A as % revenues 10.8 10.2
Adjusted SG&A as %
revenues (2) 10.7 10.1
SG&A as % gross profit 72.4 71.3
Adjusted SG&A as %
gross profit (2) 71.6 70.7
Operating margin % 3.6 3.7
Adjusted operating
margin % (2) 3.8 3.8
Six Months Ended June 30,
2016 2015 % Increase/ Local Currency
(Decrease) % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail
sales $2,715,616 $2,807,442 (3.3) (1.4)
Used vehicle retail
sales 1,321,197 1,280,904 3.1 4.8
Used vehicle wholesale
sales 176,949 196,347 (9.9) (8.1)
------- -------
Total used 1,498,146 1,477,251 1.4 3.1
Parts and service 594,585 569,861 4.3 5.8
Finance and insurance 198,183 197,182 0.5 1.3
------- -------
Total $5,006,530 $5,051,736 (0.9) 0.8
GROSS MARGIN %:
New vehicle retail
sales 5.2 5.1
Used vehicle retail
sales 7.0 7.1
Used vehicle wholesale
sales 0.9 0.9
Total used 6.3 6.3
Parts and service 53.8 54.0
Finance and insurance 100.0 100.0
Total 15.0 14.6
GROSS PROFIT:
New vehicle retail
sales $140,528 $142,479 (1.4) 0.9
Used vehicle retail
sales 92,710 90,760 2.1 3.3
Used vehicle wholesale
sales 1,582 1,744 (9.3) (5.2)
----- -----
Total used 94,292 92,504 1.9 3.1
Parts and service 319,917 307,859 3.9 5.2
Finance and insurance 198,183 197,182 0.5 1.3
------- -------
Total $752,920 $740,024 1.7 3.1
UNITS SOLD:
Retail new vehicles
sold 77,735 82,127 (5.3)
Retail used vehicles
sold 62,745 60,312 4.0
Wholesale used vehicles
sold 25,996 27,900 (6.8)
------ ------
Total used 88,741 88,212 0.6
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $34,934 $34,184 2.2 4.2
Used vehicle retail $21,057 $21,238 (0.9) 0.7
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $1,808 $1,735 4.2 6.6
Used vehicle retail
sales 1,478 1,505 (1.8) (0.7)
Used vehicle wholesale
sales 61 63 (3.2) 1.7
Total used 1,063 1,049 1.3 2.5
Finance and insurance
(per retail unit) $1,411 $1,384 2.0 2.7
OTHER:
SG&A expenses $554,409 $536,450 3.3 4.9
Adjusted SG&A
expenses(2) $548,010 $533,927 2.6 4.2
SG&A as % revenues 11.1 10.6
Adjusted SG&A as %
revenues (2) 10.9 10.6
SG&A as % gross profit 73.6 72.5
Adjusted SG&A as %
gross profit (2) 72.8 72.1
Operating margin % 3.5 3.6
Adjusted operating
margin % (2) 3.6 3.6
(1) Same store amounts include the
results for the identical months in
each period presented in the
comparison, commencing with the
first full month we owned the
dealership and, in the case of
dispositions, ending with the last
full month we owned it. Same store
results also include the activities
of our corporate office.
(2)These amounts have been adjusted
to exclude the impact of certain
items to provide additional
information regarding the
performance of our operations and
improve period-to-period
comparability. Refer to our
Reconciliation of Certain Non-GAAP
Financial Measures for a description
of the aforementioned adjustments.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - U.S.
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended June 30,
---------------------------
2016 2015 % Increase/
(Decrease)
---------
SG&A RECONCILIATION:
As reported $245,389 $239,863 2.3
Pre-tax adjustments:
Catastrophic events (2,769) (951)
Gain (loss) on real estate and
dealership transactions (250) 1,052
Legal settlements - (1,000)
Adjusted SG&A (1) $242,370 $238,964 1.4
SG&A AS % REVENUES:
Unadjusted 11.1 10.5
Adjusted (1) 11.0 10.4
SG&A AS % GROSS PROFIT:
Unadjusted 71.2 70.1
Adjusted (1) 70.3 69.8
OPERATING MARGIN %
Unadjusted 4.0 4.0
Adjusted (1), (2) 4.1 4.1
PRETAX MARGIN %:
Unadjusted 2.8 3.0
Adjusted (1), (2) 3.0 3.1
SAME STORE SG&A RECONCILIATION:
As reported $241,144 $234,247 2.9
Pre-tax adjustments:
Catastrophic events (2,769) (951)
Gain (loss) on real estate and
dealership transactions (250) (364)
Legal settlements - (1,000)
Adjusted Same Store SG&A (1) $238,125 $231,932 2.7
SAME STORE SG&A AS % REVENUES:
Unadjusted 11.1 10.5
Adjusted (1) 11.0 10.4
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 71.3 70.1
Adjusted (1) 70.5 69.4
SAME STORE OPERATING MARGIN %
Unadjusted 3.9 4.0
Adjusted (1), (3) 4.1 4.1
Six Months Ended June 30,
-------------------------
2016 2015 % Increase/
(Decrease)
---------
SG&A RECONCILIATION:
As reported $491,229 $469,836 4.6
Pre-tax adjustments:
Catastrophic events (5,423) (951)
Gain (loss) on real estate and
dealership transactions 680 1,052
Acquisition costs (30) -
Legal settlements - (1,000)
Adjusted SG&A (1) $486,456 $468,937 3.7
SG&A AS % REVENUES:
Unadjusted 11.5 11.0
Adjusted (1) 11.3 10.9
SG&A AS % OF GROSS PROFIT:
Unadjusted 72.5 71.5
Adjusted (1) 71.8 71.4
OPERATING MARGIN %:
Unadjusted 3.8 3.9
Adjusted (1), (2) 4.0 3.9
PRETAX MARGIN %:
Unadjusted 2.6 2.9
Adjusted (1), (2) 2.8 2.9
SAME STORE SG&A RECONCILIATION:
As reported $479,250 $458,591 4.5
Pre-tax adjustments:
Catastrophic events (5,423) (951)
Gain (loss) on real estate and
dealership transactions (385) (364)
Acquisition costs (30) -
Legal settlements - (1,000)
Adjusted Same Store SG&A (1) $473,412 $456,276 3.8
SAME STORE SG&A AS % REVENUES:
Unadjusted 11.5 10.9
Adjusted (1) 11.3 10.9
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 72.6 71.3
Adjusted (1) 71.8 70.9
SAME STORE OPERATING MARGIN %
Unadjusted 3.8 3.9
Adjusted (1), (3) 4.0 4.0
(1) We have
included
certain non-
GAAP
financial
measures as
defined under
SEC rules,
which exclude
certain
items. These
adjusted
measures are
not measures
of financial
performance
under U.S.
GAAP, but are
instead
considered
non-GAAP
financial
performance
measures. As
required by
SEC rules, we
provide
reconciliations
of these
adjusted
measures to
the most
directly
comparable
U.S. GAAP
measures. We
believe that
these
adjusted
financial
measures are
relevant and
useful to
investors
because they
improve the
transparency
of our
disclosure,
provide a
meaningful
presentation
of results
from our core
business
operations
and improve
period-to-
period
comparability
of our
results from
our core
business
operations.
(2) Excludes the
impact of
SG&A
reconciling
items above,
as well as
non-cash
asset
impairment
charges of
$1,024 and
$1,534 for
the three and
six months
ended June
30, 2016 and
$498 for the
three and six
months ended
June 30,
2015.
(3) Excludes the
impact of
Same Store
SG&A
reconciling
items above,
as well as
non-cash
asset
impairment
charges of
$1,024 and
$1,534 for
the three and
six months
ended June
30, 2016 and
$498 for the
three and six
months ended
June 30,
2015.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - U.K.
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended June 30,
---------------------------
2016 2015 % Increase/
(Decrease)
---------
SG&A RECONCILIATION:
As reported $42,109 $26,641 58.1
Pre-tax adjustments:
Severance costs - (208)
Adjusted SG&A (1) $42,109 $26,433 59.3
SG&A AS % REVENUES:
Unadjusted 9.0 8.6
Adjusted (1) 9.0 8.6
SG&A AS % GROSS PROFIT:
Unadjusted 77.5 78.5
Adjusted (1) 77.5 77.9
OPERATING MARGIN %
Unadjusted 2.2 2.0
Adjusted (1), (2) 2.2 2.1
PRETAX MARGIN %:
Unadjusted 1.7 1.6
Adjusted (1), (2) 1.7 1.6
SAME STORE SG&A RECONCILIATION:
As reported $27,819 $26,653 4.4
Pre-tax adjustments:
Severance costs - (208)
Adjusted Same Store SG&A (1) $27,819 $26,445 5.2
SAME STORE SG&A AS % REVENUES:
Unadjusted 8.8 8.6
Adjusted (1) 8.8 8.6
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 75.8 78.6
Adjusted (1) 75.8 78.0
SAME STORE OPERATING MARGIN %
Unadjusted 2.4 2.0
Adjusted (1), (3) 2.4 2.1
Six Months Ended June 30,
-------------------------
2016 2015 % Increase/
(Decrease)
---------
SG&A RECONCILIATION:
As reported $79,545 $53,403 49.0
Pre-tax adjustments:
Severance costs - (208)
Acquisition costs (561) -
Adjusted SG&A (1) $78,984 $53,195 48.5
SG&A AS % REVENUES:
Unadjusted 8.8 8.8
Adjusted (1) 8.8 8.8
SG&A AS % OF GROSS PROFIT:
Unadjusted 78.7 78.4
Adjusted (1) 78.1 78.1
OPERATING MARGIN %:
Unadjusted 2.0 2.1
Adjusted (1), (2) 2.1 2.1
PRETAX MARGIN %:
Unadjusted 1.5 1.6
Adjusted (1), (2) 1.6 1.7
SAME STORE SG&A RECONCILIATION:
As reported $55,280 $53,416 3.5
Pre-tax adjustments:
Severance costs - (208)
Acquisition costs (561) -
Adjusted Same Store SG&A (1) $54,719 $53,208 2.8
SAME STORE SG&A AS % REVENUES:
Unadjusted 8.7 8.8
Adjusted (1) 8.6 8.8
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 76.0 78.5
Adjusted (1) 75.2 78.2
SAME STORE OPERATING MARGIN %
Unadjusted 2.4 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 U.S.
GAAP, but are
instead
considered
non-GAAP
financial
performance
measures. As
required by
SEC rules, we
provide
reconciliations
of these
adjusted
measures to
the most
directly
comparable
U.S. 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 June 30,
---------------------------
2016 2015 % Increase/
(Decrease)
---------
OPERATING MARGIN %
Unadjusted (0.6) 0.3
Adjusted (1), (2) (0.6) 0.7
PRETAX MARGIN %:
Unadjusted (0.6) (0.4)
Adjusted (1), (2) (0.6) -
Six Months Ended June 30,
-------------------------
2016 2015 % Increase/
(Decrease)
---------
SG&A RECONCILIATION:
As reported $21,913 $28,798 (23.9)
Pre-tax adjustments:
Gain (loss) on real estate and
dealership transactions (371) -
Adjusted SG&A (1) $21,542 $28,798 (25.2)
SG&A AS % REVENUES:
Unadjusted 10.8 10.8
Adjusted (1) 10.7 10.8
SG&A AS % OF GROSS PROFIT:
Unadjusted 105.2 93.8
Adjusted (1) 103.4 93.8
OPERATING MARGIN %:
Unadjusted (1.0) 0.1
Adjusted (1), (3) (0.6) 0.3
PRETAX MARGIN %:
Unadjusted (1.1) (0.5)
Adjusted (1), (3) (0.7) (0.3)
SAME STORE OPERATING MARGIN %
Unadjusted (0.2) 1.4
Adjusted (1), (4) - 1.4
(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 U.S.
GAAP, but are
instead
considered
non-GAAP
financial
performance
measures. As
required by
SEC rules, we
provide
reconciliations
of these
adjusted
measures to
the most
directly
comparable
U.S. 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
non-cash
asset
impairment
charges of
$423 for the
six months
ended June
30, 2016 and
$541 for the
three and six
months ended
June 30,
2015.
(3) Excludes the
impact of
SG&A
reconciling
items above,
as well as
non-cash
asset
impairment
charges of
$423 for the
six months
ended June
30, 2016 and
$541 for the
three and six
months ended
June 30,
2015.
(4) Excludes the
impact of
Same Store
non-cash
asset
impairment
charges of
$423 for the
six months
ended June
30, 2016.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - CONSOLIDATED
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended June 30,
---------------------------
2016 2015 % Increase/
(Decrease)
---------
NET INCOME RECONCILIATION:
As reported $46,580 $46,310 0.6
Pre-tax adjustments:
Catastrophic events
Pre-tax 2,769 951
Tax impact (1,042) (359)
(Gain) loss on real estate and dealership
transactions
Pre-tax 250 (1,052)
Tax impact (94) 452
Severance costs
Pre-tax - 208
Tax impact - (41)
Legal settlements
Pre-tax - 1,000
Tax impact - (390)
Non-cash asset impairment
Pre-tax 1,024 1,039
Tax impact (391) (191)
Foreign deferred income tax benefit
Tax impact (1,686) -
Adjusted net income (1) $47,410 $47,927 (1.1)
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED
COMMON SHARES RECONCILIATION:
Adjusted net income (1) $47,410 $47,927 (1.1)
Less: Adjusted earnings allocated to
participating securities 1,918 1,855 3.4
Adjusted net income available to diluted
common shares (1) $45,492 $46,072 (1.3)
DILUTED INCOME PER COMMON SHARE RECONCILIATION:
As reported $2.12 $1.91 11.0
Pre-tax adjustments:
Catastrophic events 0.08 0.02
Gain (loss) on real estate and dealership
transactions 0.01 (0.03)
Severance costs - 0.01
Legal settlements - 0.03
Non-cash asset impairment 0.03 0.04
Foreign deferred income tax benefit (0.08) -
Adjusted diluted income per share (1) $2.16 $1.98 9.1
SG&A RECONCILIATION:
As reported $299,022 $280,567 6.6
Pre-tax adjustments:
Catastrophic events (2,769) (951)
Gain (loss) on real estate and dealership
transactions (250) 1,052
Severance costs - (208)
Legal settlements - (1,000)
Adjusted SG&A (1) $296,003 $279,460 5.9
SG&A AS % REVENUES:
Unadjusted 10.7 10.3
Adjusted (1) 10.6 10.2
SG&A AS % GROSS PROFIT:
Unadjusted 72.9 71.7
Adjusted (1) 72.2 71.4
OPERATING MARGIN %
Unadjusted 3.5 3.6
Adjusted (1), (2) 3.6 3.7
PRETAX MARGIN %:
Unadjusted 2.5 2.7
Adjusted (1), (2) 2.6 2.8
SAME STORE SG&A RECONCILIATION:
As reported $279,082 $272,567 2.4
Pre-tax adjustments:
Catastrophic events (2,769) (951)
Loss on real estate and dealership
transactions (250) (364)
Severance costs - (208)
Legal settlements - (1,000)
Adjusted Same Store SG&A (1) $276,063 $270,044 2.2
SAME STORE SG&A AS % REVENUES:
Unadjusted 10.8 10.2
Adjusted (1) 10.7 10.1
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 72.4 71.3
Adjusted (1) 71.6 70.7
SAME STORE OPERATING MARGIN %
Unadjusted 3.6 3.7
Adjusted (1), (3) 3.8 3.8
Six Months Ended June 30,
-------------------------
2016 2015 % Increase/
(Decrease)
---------
NET INCOME RECONCILIATION:
As reported $80,871 $82,124 (1.5)
Pre-tax adjustments:
Catastrophic events
Pre-tax 5,423 951
Tax impact (2,038) (359)
(Gain) loss on real estate and dealership
transactions
Pre-tax 113 (1,052)
Tax impact 255 452
Severance costs
Pre-tax - 208
Tax impact - (41)
Acquisition costs
Pre-tax 591 -
Tax impact (11) -
Legal settlements
Pre-tax - 1,000
Tax impact - (390)
Non-cash asset impairment
Pre-tax 1,533 1,039
Tax impact (586) (191)
Foreign deferred income tax benefit
Tax impact (1,686) -
Adjusted net income (1) $84,465 $83,741 0.9
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED
COMMON SHARES RECONCILIATION:
Adjusted net income (1) $84,465 $83,741 0.9
Less: Adjusted earnings allocated to
participating securities 3,367 3,238 4.0
Adjusted net income available to diluted
common shares (1) $81,098 $80,503 0.7
DILUTED INCOME PER COMMON SHARE RECONCILIATION:
As reported $3.57 $3.38 5.6
Pre-tax adjustments:
Catastrophic events 0.15 0.02
Gain (loss) on real estate and dealership
transactions 0.02 (0.02)
Severance costs - 0.01
Acquisition costs 0.02 -
Legal settlements - 0.02
Non-cash asset impairment 0.04 0.03
Foreign deferred income tax benefit (0.07) -
Adjusted diluted income per share (1) $3.73 $3.44 8.4
SG&A RECONCILIATION:
As reported $592,687 $552,037 7.4
Pre-tax adjustments:
Catastrophic events (5,423) (951)
Gain (loss) on real estate and dealership
transactions 310 1,052
Severance costs - (208)
Acquisition costs (591) -
Legal settlements - (1,000)
Adjusted SG&A (1) $586,983 $550,930 6.5
SG&A AS % REVENUES:
Unadjusted 11.0 10.7
Adjusted (1) 10.9 10.7
SG&A AS % OF GROSS PROFIT:
Unadjusted 74.2 73.1
Adjusted (1) 73.4 72.9
OPERATING MARGIN %:
Unadjusted 3.3 3.5
Adjusted (1), (2) 3.5 3.5
PRETAX MARGIN %:
Unadjusted 2.3 2.5
Adjusted (1), (2) 2.4 2.6
SAME STORE SG&A RECONCILIATION:
As reported $554,409 $536,450 3.3
Pre-tax adjustments:
Catastrophic events (5,423) (951)
Gain (loss) on real estate and dealership
transactions (385) (364)
Severance costs - (208)
Acquisition costs (591) -
Legal settlements - (1,000)
Adjusted Same Store SG&A (1) $548,010 $533,927 2.6
SAME STORE SG&A AS % REVENUES:
Unadjusted 11.1 10.6
Adjusted (1) 10.9 10.6
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 73.6 72.5
Adjusted (1) 72.8 72.1
SAME STORE OPERATING MARGIN %
Unadjusted 3.5 3.6
Adjusted (1), (3) 3.6 3.6
(1) We have
included
certain non-
GAAP
financial
measures as
defined under
SEC rules,
which exclude
certain
items. These
adjusted
measures are
not measures
of financial
performance
under U.S.
GAAP, but are
instead
considered
non-GAAP
financial
performance
measures. As
required by
SEC rules, we
provide
reconciliations
of these
adjusted
measures to
the most
directly
comparable
U.S. 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
$1,024 and
$1,956 for
the three and
six months
ended June
30, 2016 and
$498 for the
three and six
months ended
June 30,
2015.
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SOURCE Group 1 Automotive, Inc.
