GROUP 1 AUTOMOTIVE, INC. HOUSTON, Oct. 20, 2016 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), an international, Fortune 500 automotive retailer, today reported third quarter 2016 net income of $35.4 million, diluted earnings per common share of $1.65, adjusted net income (a non-GAAP measure) of $42.0 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $1.96.
As shown in the attached non-GAAP reconciliation tables, the 2016 third quarter adjusted results exclude approximately $6.6 million of net after-tax adjustments, or $0.31 per share, for non-core items. These adjustments primarily consist of non-cash asset impairment charges of approximately $6.7 million after-tax, or $0.32 per share; catastrophic losses (primarily storm damage) of approximately $281 thousand after-tax, or $0.01 per share; foreign transaction tax expense of approximately $274 thousand after-tax, or $0.01 per share; and, were partially offset by dealership transaction net gains of approximately $700 thousand, or $0.03 per share.
"Our third quarter earnings were negatively impacted by ongoing sales weakness in our energy-dependent markets, especially Texas and Oklahoma, and some slight market weakness in the U.K. due to uncertainty associated with Brexit," said Earl J. Hesterberg, Group 1's president and chief executive officer. "While our U.K. sales decreased in July and August, we did see recovery in September, but not enough to offset the weakness that occurred immediately following the vote. Additionally, the weakening pound, versus the dollar, lowered this quarter's earnings per share by about four cents. Within the U.S. results, we were encouraged by another quarter of improving new vehicle margins and the progress we have made in reducing new vehicle inventory during the quarter, with days' supply improving nine days from second-quarter levels to 74 days' supply at quarter end."
Consolidated Results for Third Quarter 2016 (year-over-year comparable basis)
For ease of comparison, we have included constant currency metrics (a non-GAAP measure) both below (shown in parenthesis) and in the financial tables that follow:
-- Total revenue increased 0.8 percent (3.3 percent) to a third-quarter
record of $2.8 billion; total gross profit grew 2.1 percent (4.0
percent) to $406.7 million.
-- New vehicle revenues decreased 0.8 percent (but increased 1.6 percent on
a constant currency basis) driven by a 3.2 percent decrease in unit
sales. New vehicle gross profit improved 1.2 percent (3.8 percent) to
$80.4 million.
-- Retail used vehicle revenues increased 2.2 percent (4.8 percent) on 1.6
percent higher unit sales. Retail used vehicle gross profit decreased
1.3 percent (but increased 0.5 percent on a constant currency basis) to
$46.0 million.
-- Parts and service gross profit increased 4.2 percent (6.1 percent) on
revenue growth of 5.3 percent (7.1 percent). Same Store parts and
service gross profit increased 1.2 percent (2.5 percent) on revenue
growth of 2.6 percent (3.8 percent). U.S. Same Store parts and service
gross profit increased 2.4 percent on revenue growth of 3.4 percent.
-- Same Store Finance and Insurance (F&I) gross profit per retail unit
(PRU) increased 4.0 percent (5.0 percent) to $1,421. U.S. F&I gross
profit PRU increased $73 to $1,588.
-- On a GAAP basis, Selling, General and Administrative (SG&A) expenses as
a percent of gross profit increased 100 basis points to 73.5 percent.
Adjusted SG&A expenses as a percent of gross profit increased 110 basis
points to 73.6 percent.
Segment Results for Third Quarter 2016 (year-over-year comparable basis)
-- United States:The Company's U.S. operations accounted for 80.6 percent
of total revenues and 85.3 percent of total gross profit. Total U.S.
revenues were $2.3 billion, a decrease of 2.9 percent, driven by a 5.5
percent decrease in retail new vehicle revenue. While new vehicle sales
volume decreased, new vehicle gross profit per unit sold grew $154, or
9.5 percent per unit, to $1,783 and total gross profit of $346.7 million
was only down 0.5 percent. New vehicle inventory improved 9 days from
second-quarter levels and ended the quarter at 74 days' supply. On a
GAAP basis, SG&A expenses as a percent of gross profit improved 30 basis
points to 71.1 percent and operating margin decreased 40 basis points to
3.4 percent. Adjusted SG&A expenses as a percent of gross profit and
adjusted operating margin both improved 10 basis points to 71.3 percent
and 3.9, respectively.
-- United Kingdom:The Company's U.K. operations accounted for 15.4 percent
of total revenues and 11.7 percent of total gross profit. Total U.K.
revenues increased 33.2 percent (56.7 percent) to $436.0 million, and
gross profit increased 31.0 percent (54.2 percent) to $47.5 million.
Revenue growth was primarily driven by the acquisition of the Spire
dealer group in February of this year. On a constant currency basis,
Same Store total revenue increased 5.5 percent, driven by a 6.1 percent
increase in new vehicle revenues, 7.9 percent increase in parts and
service revenues, and a 15.0 percent increase in F&I gross profit PRU.On
a Same Store GAAP basis, SG&A expenses as a percent of gross profit and
operating margin both improved 10 basis points to 77.5 percent and 2.2
percent, respectively. On a Same Store basis, adjusted SG&A expenses as
a percent of gross profit improved 10 basis points to 77.5 percent and
adjusted operating margin was unchanged at 2.2 percent.
-- Brazil:The Company's Brazilian operations accounted for 4.0 percent of
total revenues and 3.1 percent of total gross profit. The Company's Same
Store new vehicle revenue declined 24.2 percent on a constant currency
basis in a continued weak economic environment. Year-to-date, Brazil's
new vehicle industry volumes have declined about 23 percent. For the
quarter, Same Store total revenue was down 18.7 percent on a constant
currency basis, as F&I gross profit PRU growth of 44.3 percent and parts
and service revenue growth of 2.0 percent partially offset the decline
in new and used vehicles.The Company continues to improve its used
vehicle operations in Brazil, with used vehicle retail margins improving
360 basis points to 7.6 percent and total used vehicle gross profit
increasing $0.7 million or 69.7 percent on a constant currency basis.
Corporate Development
During the third quarter of 2016, the Company divested two dealerships in the U.S., which included Hyundai of Escondido, California and Ira Porsche of Danvers, Massachusetts. In October 2016, the Company divested Honda of Van Nuys, California. In total, these dealerships generated approximately $120 million in trailing-twelve-month revenues. These divestitures are consistent with Group 1's portfolio management strategy.
Additionally, in the U.S., during third quarter of 2016, the Company was awarded a Porsche open point in El Paso, Texas. The store's opening is targeted for late 2017. The Company will provide expected annual revenues for this franchise when its opening is announced.
In October 2016, in the U.K., the Company acquired the Ford Basingstoke and Ford Newbury dealerships, which are located southwest and west of London, respectively and are contiguous with Group 1's existing U.K. Ford operations. These stores, which will be rebranded as Think Ford Basingstoke and Think Ford Newbury, are expected to generate approximately $65 million in annualized revenues.
Share Repurchase Authorization
During the third quarter of 2016, the Company repurchased 244,205 shares at an average price of $50.61 for a total of $12.4 million, which were previously announced purchases in July 2016. As of October 20, 2016, $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.
THIRD QUARTER EARNINGS CONFERENCE CALL DETAILS
The Company's senior management will host a conference call today at 9 a.m. ET to discuss the third quarter financial results and the Company's outlook and strategy.
The conference call will be simulcast live on the Internet at www.group1auto.com, then click on 'Investor Relations' and then 'Events' or through this link: http://www.group1corp.com/events. A webcast replay will be available for 30 days.
The conference call will also be available live by dialing in 15 minutes prior to the start of the call at:
Domestic: 1-888-317-6003
International: 1-412-317-6061
Conference ID: 6474498
A telephonic replay will be available following the call through October 27, 2016 by dialing:
Domestic: 1-877-344-7529
International: 1-412-317-0088
Replay ID: 10094717
About Group 1 Automotive, Inc.
Group 1 owns and operates 160 automotive dealerships, 211 franchises, and 37 collision centers in the United States, the United Kingdom and Brazil that offer 32 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service 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.
We evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our underlying business and results of operations, consistent with how we evaluate our performance. We calculate constant currency percentages by converting our current period reported results for entities reporting in currencies other than United States dollars using comparative period exchange rates rather than the actual exchange rates in effect during the respective periods. The constant currency performance measures should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with U.S. GAAP.
Investor contacts:
Sheila Roth
Manager, Investor Relations
Group 1 Automotive, Inc.
713-647-5741 | sroth@group1auto.com
Media contacts:
Pete DeLongchamps
V.P. Manufacturer Relations, Financial Services and Public Affairs
Group 1 Automotive, Inc.
713-647-5770 | pdelongchamps@group1auto.com
or
Clint Woods
Pierpont Communications, Inc.
713-627-2223 | cwoods@piercom.com
Group 1 Automotive, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended September 30,
--------------------------------
2016 2015 % Increase/
(Decrease)
----------
REVENUES:
New vehicle retail sales $1,587,952 $1,601,213 (0.8)
Used vehicle retail sales 702,620 687,637 2.2
Used vehicle wholesale
sales 104,218 100,483 3.7
Parts and service 319,676 303,557 5.3
Finance and insurance 108,710 107,679 1.0
------- -------
Total revenues 2,823,176 2,800,569 0.8
COST OF SALES:
New vehicle retail sales 1,507,517 1,521,721 (0.9)
Used vehicle retail sales 656,652 641,055 2.4
Used vehicle wholesale
sales 106,077 102,318 3.7
Parts and service 146,262 137,093 6.7
------- -------
Total cost of sales 2,416,508 2,402,187 0.6
GROSS PROFIT 406,668 398,382 2.1
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 299,006 289,012 3.5
DEPRECIATION AND
AMORTIZATION EXPENSE 12,891 11,811 9.1
ASSET IMPAIRMENTS 10,855 916 1,085.0
OPERATING INCOME 83,916 96,643 (13.2)
OTHER EXPENSE:
Floorplan interest expense (11,135) (9,685) 15.0
Other interest expense,
net (17,094) (13,922) 22.8
INCOME BEFORE INCOME TAXES 55,687 73,036 (23.8)
PROVISION FOR INCOME TAXES (20,321) (27,775) (26.8)
NET INCOME $35,366 $45,261 (21.9)
======= =======
Less: Earnings allocated
to participating
securities $1,426 $1,729 (17.5)
Earnings available to
diluted common shares $33,940 $43,532 (22.0)
======= =======
DILUTED EARNINGS PER SHARE $1.65 $1.88 (12.2)
Weighted average dilutive
common shares outstanding 20,578 23,137 (11.1)
Weighted average
participating securities 872 925 (5.7)
--- ---
Total weighted average
shares outstanding 21,450 24,062 (10.9)
Nine Months Ended September 30,
-------------------------------
2016 2015 % Increase/
(Decrease)
----------
REVENUES:
New vehicle retail sales $4,538,562 $4,468,200 1.6
Used vehicle retail sales 2,106,569 1,993,124 5.7
Used vehicle wholesale
sales 302,089 302,186 -
Parts and service 950,341 888,939 6.9
Finance and insurance 316,419 307,454 2.9
Total revenues 8,213,980 7,959,903 3.2
COST OF SALES:
New vehicle retail sales 4,305,252 4,242,847 1.5
Used vehicle retail sales 1,963,136 1,854,361 5.9
Used vehicle wholesale
sales 302,551 302,276 0.1
Parts and service 437,153 406,580 7.5
Total cost of sales 7,008,092 6,806,064 3.0
GROSS PROFIT 1,205,888 1,153,839 4.5
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 891,692 841,050 6.0
DEPRECIATION AND
AMORTIZATION EXPENSE 38,067 35,441 7.4
ASSET IMPAIRMENTS 12,812 1,955 555.3
OPERATING INCOME 263,317 275,393 (4.4)
OTHER EXPENSE:
Floorplan interest expense (33,737) (29,046) 16.2
Other interest expense,
net (50,729) (42,061) 20.6
INCOME BEFORE INCOME TAXES 178,851 204,286 (12.5)
PROVISION FOR INCOME TAXES (62,614) (76,901) (18.6)
NET INCOME $116,237 $127,385 (8.8)
======== ========
Less: Earnings allocated
to participating
securities $4,651 $4,905 (5.2)
Earnings available to
diluted common shares $111,586 $122,480 (8.9)
======== ========
DILUTED EARNINGS PER SHARE $5.22 $5.26 (0.8)
Weighted average dilutive
common shares outstanding 21,364 23,298 (8.3)
Weighted average
participating securities 895 934 (4.2)
--- ---
Total weighted average
shares outstanding 22,259 24,232 (8.1)
Group 1 Automotive, Inc.
Consolidated Balance Sheets
(Unaudited)
(Dollars in thousands)
September 30, December 31, % Increase/
2016 2015 (Decrease)
---- ---- ---------
ASSETS:
CURRENT ASSETS:
Cash and cash equivalents $22,918 $13,037 75.8
Contracts in transit and vehicle
receivables, net 206,292 252,438 (18.3)
Accounts and notes receivable, net 156,294 157,768 (0.9)
Inventories, net 1,687,379 1,737,751 (2.9)
Prepaid expenses and other current assets 25,555 27,376 (6.7)
------ ------
Total current assets 2,098,438 2,188,370 (4.1)
PROPERTY AND EQUIPMENT, net 1,118,785 1,033,981 8.2
GOODWILL AND INTANGIBLE FRANCHISE RIGHTS 1,190,906 1,162,503 2.4
OTHER ASSETS 12,935 11,862 9.0
Total assets $4,421,064 $4,396,716 0.6
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES:
Floorplan notes payable -credit facility
and other $1,110,104 $1,265,719 (12.3)
Offset account related to floorplan notes
payable -credit facility (59,684) (110,759) (46.1)
Floorplan notes payable -manufacturer
affiliates 387,770 389,071 (0.3)
Offset account related to floorplan notes
payable -manufacturer affiliates (22,500) (25,500) (11.8)
Current maturities of long-term debt and
short-term financing 62,349 54,991 13.4
Accounts payable 354,957 280,423 26.6
Accrued expenses 193,553 185,323 4.4
Total current liabilities 2,026,549 2,039,268 (0.6)
5.00% SENIOR NOTES (principal of $550,000
at September 30, 2016 and December 31,
2015, respectively) 540,075 538,933 0.2
5.25% SENIOR NOTES (principal of $300,000
at September 30, 2016 and December 31,
2015, respectively) 295,455 295,156 0.1
REAL ESTATE RELATED AND OTHER LONG-TERM
DEBT, net of current maturities 352,548 317,290 11.1
CAPITAL LEASE OBLIGATIONS RELATED TO REAL
ESTATE, net of current maturities 44,639 48,155 (7.3)
DEFERRED INCOME TAXES 148,001 136,644 8.3
LIABILITIES FROM INTEREST RATE RISK
MANAGEMENT ACTIVITIES 45,040 31,153 44.6
OTHER LIABILITIES 81,785 71,865 13.8
STOCKHOLDERS' EQUITY:
Common stock 257 257 -
Additional paid-in capital 287,018 291,092 (1.4)
Retained earnings 1,027,393 926,169 10.9
Accumulated other comprehensive loss (157,446) (137,984) 14.1
Treasury stock (270,250) (161,282) 67.6
Total stockholders' equity 886,972 918,252 (3.4)
------- -------
Total liabilities and stockholders' equity $4,421,064 $4,396,716 0.6
========== ==========
Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2016 (%) 2015 (%) 2016 (%) 2015 (%)
------- ------- ------- -------
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
Region Geographic Market
------ -----------------
East Massachusetts 5.0 6.0 4.9 6.1
Georgia 4.6 4.5 4.2 4.6
Florida 2.5 2.3 2.5 2.0
New Hampshire 2.0 2.1 1.9 2.0
New Jersey 1.7 2.3 1.6 2.3
Louisiana 1.6 1.5 1.5 1.6
Mississippi 1.5 1.5 1.5 1.5
South Carolina 1.3 1.4 1.4 1.4
Alabama 1.0 0.6 0.9 0.7
Maryland 0.5 0.5 0.5 0.5
21.7 22.7 20.9 22.7
West Texas 36.2 38.6 36.4 38.4
California 9.4 9.5 9.3 9.7
Oklahoma 6.6 7.8 6.9 7.7
Kansas 1.6 2.0 1.8 2.1
Louisiana 0.6 0.7 0.6 0.7
54.4 58.6 55.0 58.6
International United Kingdom 18.6 11.1 18.2 11.0
Brazil 5.3 7.6 5.9 7.7
100.0 100.0 100.0 100.0
===== ===== ===== =====
NEW VEHICLE UNIT SALES BRAND MIX:
---------------------------------
Toyota/Scion/Lexus 25.3 26.6 24.7 26.6
BMW/MINI 13.2 11.3 13.3 11.4
Volkswagen/Audi/Porsche 11.3 7.7 10.9 7.0
Ford/Lincoln 10.8 11.6 11.1 11.6
Honda/Acura 9.9 11.1 10.2 10.9
Chevrolet/GMC/Buick/Cadillac 7.3 7.8 7.6 7.5
Nissan 7.0 8.0 7.0 8.4
Hyundai/Kia 4.3 5.4 4.4 5.8
Mercedes-Benz/smart/Sprinter 4.2 3.8 4.1 4.1
Chrysler/Dodge/Jeep/RAM 4.1 4.6 4.1 4.6
Other 2.6 2.1 2.6 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 September 30,
--------------------------------
2016 2015 % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail sales $1,254,421 $1,327,049 (5.5)
Used vehicle retail sales 575,551 577,426 (0.3)
Used vehicle wholesale sales 74,821 74,161 0.9
------ ------
Total used 650,372 651,587 (0.2)
Parts and service 271,635 264,979 2.5
Finance and insurance 98,295 99,952 (1.7)
------ ------
Total $2,274,723 $2,343,567 (2.9)
GROSS MARGIN %:
New vehicle retail sales 4.9 4.7
Used vehicle retail sales 6.8 7.1
Used vehicle wholesale sales (2.0) (2.5)
Total used 5.8 6.0
Parts and service 54.8 55.4
Finance and insurance 100.0 100.0
Total 15.2 14.9
GROSS PROFIT:
New vehicle retail sales $61,886 $62,428 (0.9)
Used vehicle retail sales 39,193 41,053 (4.5)
Used vehicle wholesale sales (1,514) (1,855) 18.4
------ ------
Total used 37,679 39,198 (3.9)
Parts and service 148,866 146,737 1.5
Finance and insurance 98,295 99,952 (1.7)
------ ------
Total $346,726 $348,315 (0.5)
UNITS SOLD:
Retail new vehicles sold 34,700 38,331 (9.5)
Retail used vehicles sold 27,201 27,664 (1.7)
Wholesale used vehicles sold 11,005 11,733 (6.2)
------ ------
Total used 38,206 39,397 (3.0)
AVERAGE RETAIL SALES PRICE:
New vehicle retail $36,150 $34,621 4.4
Used vehicle retail $21,159 $20,873 1.4
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales $1,783 $1,629 9.5
Used vehicle retail sales 1,441 1,484 (2.9)
Used vehicle wholesale sales (138) (158) 12.7
Total used 986 995 (0.9)
Finance and insurance (per
retail unit) $1,588 $1,515 4.8
OTHER:
SG&A expenses $246,501 $248,771 (0.9)
Adjusted SG&A expenses(1) $247,227 $248,771 (0.6)
SG&A as % revenues 10.8 10.6
Adjusted SG&A as % revenues
(1) 10.9 10.6
SG&A as % gross profit 71.1 71.4
Adjusted SG&A as % gross
profit (1) 71.3 71.4
Operating margin % 3.4 3.8
Adjusted operating margin %
(1) 3.9 3.8
Pretax margin % 2.3 2.9
Adjusted pretax margin % (1) 2.8 2.9
INTEREST EXPENSE:
Floorplan interest expense $(9,979) $(8,964) 11.3
Floorplan assistance 12,824 13,344 (3.9)
------ ------
Net floorplan income
(expense) $2,845 $4,380 (35.0)
Other interest income
(expense), net $(15,710) $(12,737) 23.3
Nine Months Ended September 30,
-------------------------------
2016 2015 % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail sales $3,558,127 $3,693,777 (3.7)
Used vehicle retail sales 1,709,595 1,661,932 2.9
Used vehicle wholesale sales 205,755 217,032 (5.2)
------- -------
Total used 1,915,350 1,878,964 1.9
Parts and service 805,618 771,986 4.4
Finance and insurance 284,644 284,787 (0.1)
------- -------
Total $6,563,739 $6,629,514 (1.0)
GROSS MARGIN %:
New vehicle retail sales 5.0 4.8
Used vehicle retail sales 7.2 7.3
Used vehicle wholesale sales (0.3) (0.1)
Total used 6.4 6.5
Parts and service 54.6 54.8
Finance and insurance 100.0 100.0
Total 15.6 15.2
GROSS PROFIT:
New vehicle retail sales $177,674 $175,549 1.2
Used vehicle retail sales 122,832 121,906 0.8
Used vehicle wholesale sales (643) (167) (285.0)
---- ----
Total used 122,189 121,739 0.4
Parts and service 439,526 422,912 3.9
Finance and insurance 284,644 284,787 (0.1)
------- -------
Total $1,024,033 $1,004,987 1.9
UNITS SOLD:
Retail new vehicles sold 98,692 106,651 (7.5)
Retail used vehicles sold 80,888 79,647 1.6
Wholesale used vehicles sold 30,894 33,542 (7.9)
------ ------
Total used 111,782 113,189 (1.2)
AVERAGE RETAIL SALES PRICE:
New vehicle retail $36,053 $34,634 4.1
Used vehicle retail $21,135 $20,866 1.3
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales $1,800 $1,646 9.4
Used vehicle retail sales 1,519 1,531 (0.8)
Used vehicle wholesale sales (21) (5) (320.0)
Total used 1,093 1,076 1.6
Finance and insurance (per
retail unit) $1,585 $1,529 3.7
OTHER:
SG&A expenses $737,730 $718,607 2.7
Adjusted SG&A expenses(1) $733,683 $717,708 2.2
SG&A as % revenues 11.2 10.8
Adjusted SG&A as % revenues
(1) 11.2 10.8
SG&A as % gross profit 72.0 71.5
Adjusted SG&A as % gross
profit (1) 71.6 71.4
Operating margin % 3.7 3.8
Adjusted operating margin %
(1) 3.9 3.9
Pretax margin % 2.5 2.9
Adjusted pretax margin % (1) 2.8 2.9
INTEREST EXPENSE:
Floorplan interest expense $(30,428) $(26,440) 15.1
Floorplan assistance 36,176 36,503 (0.9)
------ ------
Net floorplan income
(expense) $5,748 $10,063 (42.9)
Other interest income
(expense), net $(46,581) $(38,534) 20.9
(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 September 30,
2016 2015 % Increase/ Constant Currency % (2)
(Decrease) Increase/ (Decrease)
--------- --------------------
REVENUES:
New vehicle retail sales $256,143 $180,967 41.5 66.3
Used vehicle retail sales 106,856 89,321 19.6 41.2
Used vehicle wholesale sales 28,586 24,859 15.0 35.6
------ ------
Total used 135,442 114,180 18.6 40.0
Parts and service 35,682 26,193 36.2 60.8
Finance and insurance 8,708 6,091 43.0 68.2
----- -----
Total $435,975 $327,431 33.2 56.7
GROSS MARGIN %:
New vehicle retail sales 5.5 6.1
Used vehicle retail sales 4.9 5.2
Used vehicle wholesale sales (1.4) (0.3)
Total used 3.6 4.0
Parts and service 55.7 55.6
Finance and insurance 100.0 100.0
Total 10.9 11.1
GROSS PROFIT:
New vehicle retail sales $14,031 $11,060 26.9 48.7
Used vehicle retail sales 5,265 4,631 13.7 34.3
Used vehicle wholesale sales (404) (73) (453.4) (558.6)
---- ---
Total used 4,861 4,558 6.6 25.9
Parts and service 19,892 14,554 36.7 61.3
Finance and insurance 8,708 6,091 43.0 68.2
----- -----
Total $47,492 $36,263 31.0 54.2
UNITS SOLD:
Retail new vehicles sold 8,468 5,213 62.4
Retail used vehicles sold 4,800 3,582 34.0
Wholesale used vehicles sold 3,689 2,791 32.2
----- -----
Total used 8,489 6,373 33.2
AVERAGE RETAIL SALES PRICE:
New vehicle retail $30,248 $34,715 (12.9) 2.4
Used vehicle retail $22,262 $24,936 (10.7) 5.4
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales $1,657 $2,122 (21.9) (8.5)
Used vehicle retail sales 1,097 1,293 (15.2) 0.2
Used vehicle wholesale sales (110) (26) (323.1) (398.3)
Total used 573 715 (19.9) (5.5)
Finance and insurance (per
retail unit) $656 $693 (5.3) 11.5
OTHER:
SG&A expenses $39,609 $28,124 40.8 66.2
Adjusted SG&A expenses(1) $39,609 $28,124 40.8 66.2
SG&A as % revenues 9.1 8.6
Adjusted SG&A as % revenues
(1) 9.1 8.6
SG&A as % gross profit 83.4 77.6
Adjusted SG&A as % gross
profit (1) 83.4 77.6
Operating margin % 1.4 2.1
Adjusted operating margin %
(1) 1.4 2.2
Pretax margin % 0.9 1.6
Adjusted pretax margin % (1) 0.9 1.7
INTEREST EXPENSE:
Floorplan interest expense $(1,083) $(625) 73.3 104.3
Floorplan assistance 154 201 (23.4) (9.7)
--- ---
Net floorplan income
(expense) $(929) $(424) 119.1 158.6
Other interest income
(expense), net $(1,299) $(780) 66.5 96.7
Nine Months Ended September 30,
-------------------------------
2016 2015 % Increase/ Constant Currency % (2)
(Decrease) Increase/ (Decrease)
--------- --------------------
REVENUES:
New vehicle retail sales $764,707 $492,424 55.3 70.8
Used vehicle retail sales 339,800 269,629 26.0 38.6
Used vehicle wholesale sales 93,985 78,692 19.4 31.2
------ ------
Total used 433,785 348,321 24.5 36.9
Parts and service 110,180 76,983 43.1 57.6
Finance and insurance 26,991 17,411 55.0 70.6
------ ------
Total $1,335,663 $935,139 42.8 57.1
GROSS MARGIN %:
New vehicle retail sales 5.7 6.3
Used vehicle retail sales 5.1 5.3
Used vehicle wholesale sales 0.1 (0.5)
Total used 4.0 4.0
Parts and service 55.2 55.0
Finance and insurance 100.0 100.0
Total 11.1 11.2
GROSS PROFIT:
New vehicle retail sales $43,347 $30,802 40.7 54.7
Used vehicle retail sales 17,329 14,164 22.3 34.3
Used vehicle wholesale sales 54 (385) 114.0 105.5
--- ----
Total used 17,383 13,779 26.2 38.2
Parts and service 60,845 42,345 43.7 58.3
Finance and insurance 26,991 17,411 55.0 70.6
------ ------
Total $148,566 $104,337 42.4 56.6
UNITS SOLD:
Retail new vehicles sold 23,694 14,408 64.5
Retail used vehicles sold 14,401 10,863 32.6
Wholesale used vehicles sold 11,328 8,682 30.5
------ -----
Total used 25,729 19,545 31.6
AVERAGE RETAIL SALES PRICE:
New vehicle retail $32,274 $34,177 (5.6) 3.9
Used vehicle retail $23,596 $24,821 (4.9) 4.5
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales $1,829 $2,138 (14.5) (5.9)
Used vehicle retail sales 1,203 1,304 (7.7) 1.3
Used vehicle wholesale sales 5 (44) 111.4 104.2
Total used 676 705 (4.1) 5.0
Finance and insurance (per
retail unit) $709 $689 2.9 13.1
OTHER:
SG&A expenses $119,154 $81,528 46.2 61.0
Adjusted SG&A expenses(1) $118,593 $81,320 45.8 60.7
SG&A as % revenues 8.9 8.7
Adjusted SG&A as % revenues
(1) 8.9 8.7
SG&A as % gross profit 80.2 78.1
Adjusted SG&A as % gross
profit (1) 79.8 77.9
Operating margin % 1.8 2.1
Adjusted operating margin %
(1) 1.9 2.1
Pretax margin % 1.3 1.6
Adjusted pretax margin % (1) 1.3 1.7
INTEREST EXPENSE:
Floorplan interest expense $(3,137) $(1,689) 85.7 105.0
Floorplan assistance 643 584 10.1 19.9
--- ---
Net floorplan income
(expense) $(2,494) $(1,105) 125.7 150.0
Other interest income
(expense), net $(3,966) $(2,339) 69.6 86.8
(1)These amounts have been adjusted
to exclude the impact of certain
items to provide additional
information regarding the
performance of our operations and
improve period-to-period
comparability. Refer to our
Reconciliation of Certain Non-GAAP
Financial Measures for a description
of the aforementioned adjustments.
(2)We present constant currency
information to provide a framework
for assessing how our underlying
businesses performed excluding the
effect of foreign currency rate
fluctuations. To present this
information, current and comparative
prior period results for entities
reporting in currencies other than
United States dollars are converted
into United States dollars using the
average exchange rates from the
comparative period rather than the
actual exchange rates in effect
during the respective periods. The
non-GAAP financial measures
presented above should not be
considered as a substitute for, or
superior to, the measures of
financial performance prepared in
accordance with U.S. GAAP.
Group 1 Automotive, Inc.
Additional Information - Brazil
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended September 30,
2016 2015 % Increase/ Constant Currency % (2)
(Decrease) Increase/ (Decrease)
--------- --------------------
REVENUES:
New vehicle retail sales $77,388 $93,197 (17.0) (22.9)
Used vehicle retail sales 20,213 20,890 (3.2) (10.3)
Used vehicle wholesale sales 811 1,463 (44.6) (47.5)
--- -----
Total used 21,024 22,353 (5.9) (12.7)
Parts and service 12,359 12,385 (0.2) (7.5)
Finance and insurance 1,707 1,636 4.3 (5.1)
----- -----
Total $112,478 $129,571 (13.2) (19.4)
GROSS MARGIN %:
New vehicle retail sales 5.8 6.4
Used vehicle retail sales 7.5 4.3
Used vehicle wholesale sales 7.3 6.4
Total used 7.5 4.4
Parts and service 37.7 41.8
Finance and insurance 100.0 100.0
Total 11.1 10.7
GROSS PROFIT:
New vehicle retail sales $4,518 $6,004 (24.8) (29.8)
Used vehicle retail sales 1,510 898 68.2 56.3
Used vehicle wholesale sales 59 93 (36.6) (39.9)
--- ---
Total used 1,569 991 58.3 47.2
Parts and service 4,656 5,173 (10.0) (16.5)
Finance and insurance 1,707 1,636 4.3 (5.1)
----- -----
Total $12,450 $13,804 (9.8) (16.3)
UNITS SOLD:
Retail new vehicles sold 2,429 3,582 (32.2)
Retail used vehicles sold 1,011 1,245 (18.8)
Wholesale used vehicles sold 333 402 (17.2)
--- ---
Total used 1,344 1,647 (18.4)
AVERAGE RETAIL SALES PRICE:
New vehicle retail $31,860 $26,018 22.5 13.8
Used vehicle retail $19,993 $16,779 19.2 10.5
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales $1,860 $1,676 11.0 3.6
Used vehicle retail sales 1,494 721 107.2 92.4
Used vehicle wholesale sales 177 231 (23.4) (27.4)
Total used 1,167 602 93.9 80.4
Finance and insurance (per
retail unit) $496 $339 46.3 33.2
OTHER:
SG&A expenses $12,896 $12,117 6.4 (1.2)
Adjusted SG&A expenses(1) $12,622 $12,117 4.2 (3.3)
SG&A as % revenues 11.5 9.4
Adjusted SG&A as % revenues
(1) 11.2 9.4
SG&A as % gross profit 103.6 87.8
Adjusted SG&A as % gross
profit (1) 101.4 87.8
Operating margin % (0.6) 0.8
Adjusted operating margin %
(1) (0.4) 1.0
Pretax margin % (0.8) 0.4
Adjusted pretax margin % (1) (0.5) 0.6
INTEREST EXPENSE:
Floorplan interest expense $(73) $(96) (24.0) (31.8)
Floorplan assistance - - - -
--- ---
Net floorplan income
(expense) $(73) $(96) (24.0) (31.8)
Other interest income
(expense), net $(85) $(405) (79.0) (80.0)
Nine Months Ended September 30,
-------------------------------
2016 2015 % Increase/ Constant Currency % (2)
(Decrease) Increase/ (Decrease)
--------- --------------------
REVENUES:
New vehicle retail sales $215,728 $281,999 (23.5) (14.1)
Used vehicle retail sales 57,174 61,563 (7.1) 5.2
Used vehicle wholesale sales 2,349 6,462 (63.6) (58.0)
----- -----
Total used 59,523 68,025 (12.5) (0.8)
Parts and service 34,543 39,970 (13.6) (2.6)
Finance and insurance 4,784 5,256 (9.0) 2.0
----- -----
Total $314,578 $395,250 (20.4) (10.4)
GROSS MARGIN %:
New vehicle retail sales 5.7 6.7
Used vehicle retail sales 5.7 4.4
Used vehicle wholesale sales 5.4 7.1
Total used 5.7 4.6
Parts and service 37.1 42.8
Finance and insurance 100.0 100.0
Total 10.6 11.3
GROSS PROFIT:
New vehicle retail sales $12,289 $19,002 (35.3) (27.0)
Used vehicle retail sales 3,272 2,693 21.5 34.4
Used vehicle wholesale sales 127 462 (72.5) (68.3)
--- ---
Total used 3,399 3,155 7.7 19.3
Parts and service 12,817 17,102 (25.1) (15.2)
Finance and insurance 4,784 5,256 (9.0) 2.0
----- -----
Total $33,289 $44,515 (25.2) (15.8)
UNITS SOLD:
Retail new vehicles sold 7,636 10,071 (24.2)
Retail used vehicles sold 3,465 3,403 1.8
Wholesale used vehicles sold 855 1,269 (32.6)
--- -----
Total used 4,320 4,672 (7.5)
AVERAGE RETAIL SALES PRICE:
New vehicle retail $28,251 $28,001 0.9 13.3
Used vehicle retail $16,500 $18,091 (8.8) 3.3
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales $1,609 $1,887 (14.7) (3.8)
Used vehicle retail sales 944 791 19.3 32.0
Used vehicle wholesale sales 149 364 (59.1) (52.9)
Total used 787 675 16.6 29.1
Finance and insurance (per
retail unit) $431 $390 10.5 23.8
OTHER:
SG&A expenses $34,808 $40,915 (14.9) (3.8)
Adjusted SG&A expenses(1) $34,162 $40,915 (16.5) (5.6)
SG&A as % revenues 11.1 10.4
Adjusted SG&A as % revenues
(1) 10.9 10.4
SG&A as % gross profit 104.6 91.9
Adjusted SG&A as % gross
profit (1) 102.6 91.9
Operating margin % (0.9) 0.3
Adjusted operating margin %
(1) (0.5) 0.6
Pretax margin % (1.0) (0.2)
Adjusted pretax margin % (1) (0.7) -
INTEREST EXPENSE:
Floorplan interest expense $(172) $(917) (81.2) (78.1)
Floorplan assistance - - - -
--- ---
Net floorplan income
(expense) $(172) $(917) (81.2) (78.1)
Other interest income
(expense), net $(182) $(1,188) (84.7) (81.6)
(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.
(2)We present constant currency
information to provide a framework
for assessing how our underlying
businesses performed excluding the
effect of foreign currency rate
fluctuations. To present this
information, current and comparative
prior period results for entities
reporting in currencies other than
United States dollars are converted
into United States dollars using the
average exchange rates from the
comparative period rather than the
actual exchange rates in effect
during the respective periods. The
non-GAAP financial measures
presented above should not be
considered as a substitute for, or
superior to, the measures of
financial performance prepared in
accordance with U.S. GAAP.
Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended September 30,
2016 2015 % Increase/ Constant Currency % (2)
(Decrease) Increase/ (Decrease)
--------- --------------------
REVENUES:
New vehicle retail sales $1,587,952 $1,601,213 (0.8) 1.6
Used vehicle retail sales 702,620 687,637 2.2 4.8
Used vehicle wholesale sales 104,218 100,483 3.7 8.8
------- -------
Total used 806,838 788,120 2.4 5.3
Parts and service 319,676 303,557 5.3 7.1
Finance and insurance 108,710 107,679 1.0 2.2
------- -------
Total $2,823,176 $2,800,569 0.8 3.3
GROSS MARGIN %:
New vehicle retail sales 5.1 5.0
Used vehicle retail sales 6.5 6.8
Used vehicle wholesale sales (1.8) (1.8)
Total used 5.5 5.7
Parts and service 54.2 54.8
Finance and insurance 100.0 100.0
Total 14.4 14.2
GROSS PROFIT:
New vehicle retail sales $80,435 $79,492 1.2 3.8
Used vehicle retail sales 45,968 46,582 (1.3) 0.5
Used vehicle wholesale sales (1,859) (1,835) (1.3) (5.7)
------ ------
Total used 44,109 44,747 (1.4) 0.3
Parts and service 173,414 166,464 4.2 6.1
Finance and insurance 108,710 107,679 1.0 2.2
------- -------
Total $406,668 $398,382 2.1 4.0
UNITS SOLD:
Retail new vehicles sold 45,597 47,126 (3.2)
Retail used vehicles sold 33,012 32,491 1.6
Wholesale used vehicles sold 15,027 14,926 0.7
------ ------
Total used 48,039 47,417 1.3
AVERAGE RETAIL SALES PRICE:
New vehicle retail $34,826 $33,977 2.5 5.0
Used vehicle retail $21,284 $21,164 0.6 3.1
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales $1,764 $1,687 4.6 7.3
Used vehicle retail sales 1,392 1,434 (2.9) (1.1)
Used vehicle wholesale sales (124) (123) (0.8) (4.9)
Total used 918 944 (2.8) (1.0)
Finance and insurance (per
retail unit) $1,383 $1,352 2.3 3.6
OTHER:
SG&A expenses $299,006 $289,012 3.5 5.6
Adjusted SG&A expenses(1) $299,458 $289,012 3.6 5.8
SG&A as % revenues 10.6 10.3
Adjusted SG&A as % revenues
(1) 10.6 10.3
SG&A as % gross profit 73.5 72.5
Adjusted SG&A as % gross
profit (1) 73.6 72.5
Operating margin % 3.0 3.5
Adjusted operating margin %
(1) 3.3 3.5
Pretax margin % 2.0 2.6
Adjusted pretax margin % (1) 2.3 2.6
INTEREST EXPENSE:
Floorplan interest expense $(11,135) $(9,685) 15.0 16.9
Floorplan assistance 12,979 13,545 (4.2) (4.2)
------ ------
Net floorplan income
(expense) $1,844 $3,860 (52.2) (57.1)
Other interest income
(expense), net $(17,094) $(13,922) 22.8 24.4
Nine Months Ended September 30,
2016 2015 % Increase/ Constant Currency % (2)
(Decrease) Increase/ (Decrease)
--------- --------------------
REVENUES:
New vehicle retail sales $4,538,562 $4,468,200 1.6 3.9
Used vehicle retail sales 2,106,569 1,993,124 5.7 7.8
Used vehicle wholesale sales 302,089 302,186 - 3.1
------- -------
Total used 2,408,658 2,295,310 4.9 7.2
Parts and service 950,341 888,939 6.9 8.7
Finance and insurance 316,419 307,454 2.9 4.0
------- -------
Total $8,213,980 $7,959,903 3.2 5.4
GROSS MARGIN %:
New vehicle retail sales 5.1 5.0
Used vehicle retail sales 6.8 7.0
Used vehicle wholesale sales (0.2) (0.0)
Total used 5.9 6.0
Parts and service 54.0 54.3
Finance and insurance 100.0 100.0
Total 14.7 14.5
GROSS PROFIT:
New vehicle retail sales $233,310 $225,353 3.5 6.1
Used vehicle retail sales 143,433 138,763 3.4 4.8
Used vehicle wholesale sales (462) (90) (413.3) (432.4)
---- ---
Total used 142,971 138,673 3.1 4.6
Parts and service 513,188 482,359 6.4 8.0
Finance and insurance 316,419 307,454 2.9 4.0
------- -------
Total $1,205,888 $1,153,839 4.5 6.2
UNITS SOLD:
Retail new vehicles sold 130,022 131,130 (0.8)
Retail used vehicles sold 98,754 93,913 5.2
Wholesale used vehicles sold 43,077 43,493 (1.0)
------ ------
Total used 141,831 137,406 3.2
AVERAGE RETAIL SALES PRICE:
New vehicle retail $34,906 $34,075 2.4 4.8
Used vehicle retail $21,331 $21,223 0.5 2.5
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales $1,794 $1,719 4.4 7.1
Used vehicle retail sales 1,452 1,478 (1.8) (0.3)
Used vehicle wholesale sales (11) (2) (450.0) (437.5)
Total used 1,008 1,009 (0.1) 1.3
Finance and insurance (per
retail unit) $1,383 $1,366 1.2 2.3
OTHER:
SG&A expenses $891,692 $841,050 6.0 8.0
Adjusted SG&A expenses(1) $886,439 $839,943 5.5 7.5
SG&A as % revenues 10.9 10.6
Adjusted SG&A as % revenues
(1) 10.8 10.6
SG&A as % gross profit 73.9 72.9
Adjusted SG&A as % gross
profit (1) 73.5 72.8
Operating margin % 3.2 3.5
Adjusted operating margin %
(1) 3.4 3.5
Pretax margin % 2.2 2.6
Adjusted pretax margin % (1) 2.4 2.6
INTEREST EXPENSE:
Floorplan interest expense $(33,737) $(29,046) 16.2 17.4
Floorplan assistance 36,818 37,087 (0.7) (0.7)
------ ------
Net floorplan income
(expense) $3,081 $8,041 (61.7) (66.1)
Other interest income
(expense), net $(50,729) $(42,061) 20.6 21.7
(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.
(2)We present constant currency
information to provide a framework
for assessing how our underlying
businesses performed excluding the
effect of foreign currency rate
fluctuations. To present this
information, current and comparative
prior period results for entities
reporting in currencies other than
United States dollars are converted
into United States dollars using the
average exchange rates from the
comparative period rather than the
actual exchange rates in effect
during the respective periods. The
non-GAAP financial measures
presented above should not be
considered as a substitute for, or
superior to, the measures of
financial performance prepared in
accordance with U.S. GAAP.
Group 1 Automotive, Inc.
Additional Information - Same Store U.S. (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended September 30,
--------------------------------
2016 2015 % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail sales $1,240,952 $1,297,598 (4.4)
Used vehicle retail
sales 567,275 565,381 0.3
Used vehicle wholesale
sales 73,940 71,204 3.8
------ ------
Total used 641,215 636,585 0.7
Parts and service 267,909 258,996 3.4
Finance and insurance 96,809 98,577 (1.8)
------ ------
Total $2,246,885 $2,291,756 (2.0)
GROSS MARGIN %:
New vehicle retail sales 4.9 4.8
Used vehicle retail
sales 6.8 7.1
Used vehicle wholesale
sales (2.0) (2.3)
Total used 5.8 6.1
Parts and service 54.8 55.3
Finance and insurance 100.0 100.0
Total 15.2 14.9
GROSS PROFIT:
New vehicle retail sales $60,920 $61,638 (1.2)
Used vehicle retail
sales 38,719 40,358 (4.1)
Used vehicle wholesale
sales (1,460) (1,605) 9.0
------ ------
Total used 37,259 38,753 (3.9)
Parts and service 146,738 143,344 2.4
Finance and insurance 96,809 98,577 (1.8)
------ ------
Total $341,726 $342,312 (0.2)
UNITS SOLD:
Retail new vehicles sold 34,435 37,403 (7.9)
Retail used vehicles
sold 26,915 27,164 (0.9)
Wholesale used vehicles
sold 10,887 11,340 (4.0)
------ ------
Total used 37,802 38,504 (1.8)
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $36,038 $34,692 3.9
Used vehicle retail $21,077 $20,814 1.3
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $1,769 $1,648 7.3
Used vehicle retail
sales 1,439 1,486 (3.2)
Used vehicle wholesale
sales (134) (142) 5.6
Total used 986 1,006 (2.0)
Finance and insurance
(per retail unit) $1,578 $1,527 3.3
OTHER:
SG&A expenses $243,405 $242,056 0.6
Adjusted SG&A
expenses(2) $242,955 $242,056 0.4
SG&A as % revenues 10.8 10.6
Adjusted SG&A as %
revenues (2) 10.8 10.6
SG&A as % gross profit 71.2 70.7
Adjusted SG&A as % gross
profit (2) 71.1 70.7
Operating margin % 3.4 3.9
Adjusted operating
margin % (2) 3.9 3.9
Nine Months Ended September 30,
-------------------------------
2016 2015 % Increase/
(Decrease)
---------
REVENUES:
New vehicle retail sales $3,483,544 $3,615,137 (3.6)
Used vehicle retail
sales 1,670,922 1,628,417 2.6
Used vehicle wholesale
sales 200,066 209,686 (4.6)
------- -------
Total used 1,870,988 1,838,103 1.8
Parts and service 788,935 753,477 4.7
Finance and insurance 278,883 281,040 (0.8)
------- -------
Total $6,422,350 $6,487,757 (1.0)
GROSS MARGIN %:
New vehicle retail sales 5.0 4.8
Used vehicle retail
sales 7.2 7.4
Used vehicle wholesale
sales (0.2) 0.1
Total used 6.4 6.5
Parts and service 54.5 54.8
Finance and insurance 100.0 100.0
Total 15.6 15.2
GROSS PROFIT:
New vehicle retail sales $173,001 $171,974 0.6
Used vehicle retail
sales 120,081 119,995 0.1
Used vehicle wholesale
sales (372) 151 (346.4)
---- ---
Total used 119,709 120,146 (0.4)
Parts and service 429,838 412,640 4.2
Finance and insurance 278,883 281,040 (0.8)
------- -------
Total $1,001,431 $985,800 1.6
UNITS SOLD:
Retail new vehicles sold 97,163 104,424 (7.0)
Retail used vehicles
sold 79,587 78,292 1.7
Wholesale used vehicles
sold 30,367 32,651 (7.0)
------ ------
Total used 109,954 110,943 (0.9)
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $35,853 $34,620 3.6
Used vehicle retail $20,995 $20,799 0.9
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $1,781 $1,647 8.1
Used vehicle retail
sales 1,509 1,533 (1.6)
Used vehicle wholesale
sales (12) 5 (340.0)
Total used 1,089 1,083 0.6
Finance and insurance
(per retail unit) $1,578 $1,538 2.6
OTHER:
SG&A expenses $722,654 $700,646 3.1
Adjusted SG&A
expenses(2) $716,366 $698,331 2.6
SG&A as % revenues 11.3 10.8
Adjusted SG&A as %
revenues (2) 11.2 10.8
SG&A as % gross profit 72.2 71.1
Adjusted SG&A as % gross
profit (2) 71.5 70.8
Operating margin % 3.7 3.9
Adjusted operating
margin % (2) 3.9 4.0
(1) Same store amounts include the
results for the identical months in
each period presented in the
comparison, commencing with the
first full month we owned the
dealership and, in the case of
dispositions, ending with the last
full month we owned it. Same store
results also include the activities
of our corporate office.
(2)These amounts have been adjusted
to exclude the impact of certain
items to provide additional
information regarding the
performance of our operations and
improve period-to-period
comparability. Refer to our
Reconciliation of Certain Non-GAAP
Financial Measures for a description
of the aforementioned adjustments.
Group 1 Automotive, Inc.
Additional Information - Same Store U.K. (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended September 30,
2016 2015 % Increase/ Constant Currency % (3)
(Decrease) Increase/ (Decrease)
--------- --------------------
REVENUES:
New vehicle retail
sales $163,396 $180,967 (9.7) 6.1
Used vehicle retail
sales 79,243 89,321 (11.3) 4.7
Used vehicle wholesale
sales 20,785 24,859 (16.4) (1.4)
------ ------
Total used 100,028 114,180 (12.4) 3.4
Parts and service 23,952 26,193 (8.6) 7.9
Finance and insurance 6,087 6,091 (0.1) 17.6
----- -----
Total $293,463 $327,431 (10.4) 5.5
GROSS MARGIN %:
New vehicle retail
sales 5.9 6.1
Used vehicle retail
sales 5.3 5.2
Used vehicle wholesale
sales (0.3) (0.3)
Total used 4.1 4.0
Parts and service 55.3 55.6
Finance and insurance 100.0 100.0
Total 11.3 11.1
GROSS PROFIT:
New vehicle retail
sales $9,559 $11,059 (13.6) 1.3
Used vehicle retail
sales 4,189 4,632 (9.6) 6.8
Used vehicle wholesale
sales (66) (73) 9.6 (8.0)
--- ---
Total used 4,123 4,559 (9.6) 6.8
Parts and service 13,246 14,554 (9.0) 7.4
Finance and insurance 6,087 6,091 (0.1) 17.6
----- -----
Total $33,015 $36,263 (9.0) 7.2
UNITS SOLD:
Retail new vehicles
sold 5,293 5,213 1.5
Retail used vehicles
sold 3,702 3,582 3.4
Wholesale used vehicles
sold 2,824 2,791 1.2
----- -----
Total used 6,526 6,373 2.4
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $30,870 $34,715 (11.1) 4.5
Used vehicle retail $21,405 $24,936 (14.2) 1.3
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $1,806 $2,121 (14.9) (0.2)
Used vehicle retail
sales 1,132 1,293 (12.5) 3.4
Used vehicle wholesale
sales (23) (26) 11.5 (6.7)
Total used 632 715 (11.6) 4.3
Finance and insurance
(per retail unit) $677 $693 (2.3) 15.0
OTHER:
SG&A expenses $25,588 $28,130 (9.0) 7.3
Adjusted SG&A
expenses(2) $25,588 $28,130 (9.0) 7.3
SG&A as % revenues 8.7 8.6
Adjusted SG&A as %
revenues (2) 8.7 8.6
SG&A as % gross profit 77.5 77.6
Adjusted SG&A as %
gross profit (2) 77.5 77.6
Operating margin % 2.2 2.1
Adjusted operating
margin % (2) 2.2 2.2
Nine Months Ended September 30,
2016 2015 % Increase/ Constant Currency % (3)
(Decrease) Increase/ (Decrease)
--------- --------------------
REVENUES:
New vehicle retail
sales $503,611 $492,424 2.3 12.4
Used vehicle retail
sales 261,228 269,629 (3.1) 6.4
Used vehicle wholesale
sales 70,361 78,692 (10.6) (1.9)
------ ------
Total used 331,589 348,321 (4.8) 4.5
Parts and service 76,063 76,983 (1.2) 8.7
Finance and insurance 19,186 17,411 10.2 21.2
------ ------
Total $930,449 $935,139 (0.5) 9.3
GROSS MARGIN %:
New vehicle retail
sales 6.0 6.3
Used vehicle retail
sales 5.3 5.3
Used vehicle wholesale
sales 0.5 (0.5)
Total used 4.3 4.0
Parts and service 55.2 55.0
Finance and insurance 100.0 100.0
Total 11.4 11.2
GROSS PROFIT:
New vehicle retail
sales $30,430 $30,796 (1.2) 8.6
Used vehicle retail
sales 13,795 14,163 (2.6) 6.9
Used vehicle wholesale
sales 346 (384) 190.1 198.8
--- ----
Total used 14,141 13,779 2.6 12.7
Parts and service 42,001 42,344 (0.8) 9.1
Finance and insurance 19,186 17,411 10.2 21.2
------ ------
Total $105,758 $104,330 1.4 11.4
UNITS SOLD:
Retail new vehicles
sold 15,296 14,408 6.2
Retail used vehicles
sold 11,413 10,863 5.1
Wholesale used vehicles
sold 8,884 8,682 2.3
----- -----
Total used 20,297 19,545 3.8
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $32,924 $34,177 (3.7) 5.9
Used vehicle retail $22,889 $24,821 (7.8) 1.3
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail
sales $1,989 $2,137 (6.9) 2.3
Used vehicle retail
sales 1,209 1,304 (7.3) 1.8
Used vehicle wholesale
sales 39 (44) 188.6 196.5
Total used 697 705 (1.1) 8.5
Finance and insurance
(per retail unit) $718 $689 4.2 14.6
OTHER:
SG&A expenses $80,868 $81,546 (0.8) 9.1
Adjusted SG&A
expenses(2) $80,307 $81,338 (1.3) 8.6
SG&A as % revenues 8.7 8.7
Adjusted SG&A as %
revenues (2) 8.6 8.7
SG&A as % gross profit 76.5 78.2
Adjusted SG&A as %
gross profit (2) 75.9 78.0
Operating margin % 2.3 2.1
Adjusted operating
margin % (2) 2.4 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.
(3)We present constant currency
information to provide a framework
for assessing how our underlying
businesses performed excluding the
effect of foreign currency rate
fluctuations. To present this
information, current and comparative
prior period results for entities
reporting in currencies other than
United States dollars are converted
into United States dollars using the
average exchange rates from the
comparative period rather than the
actual exchange rates in effect
during the respective periods. The
non-GAAP financial measures
presented above should not be
considered as a substitute for, or
superior to, the measures of
financial performance prepared in
accordance with U.S. GAAP.
Group 1 Automotive, Inc.
Additional Information - Same Store Brazil (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended September 30,
--------------------------------
2016 2015 % Increase/ Constant Currency % (3)
(Decrease) Increase/ (Decrease)
--------- --------------------
REVENUES:
New vehicle retail sales $71,750 $87,962 (18.4) (24.2)
Used vehicle retail
sales 18,757 18,600 0.8 (6.5)
Used vehicle wholesale
sales 811 1,019 (20.4) (24.5)
--- -----
Total used 19,568 19,619 (0.3) (7.5)
Parts and service 11,557 10,500 10.1 2.0
Finance and insurance 1,651 1,390 18.8 7.8
----- -----
Total $104,526 $119,471 (12.5) (18.7)
GROSS MARGIN %:
New vehicle retail sales 5.9 6.4
Used vehicle retail
sales 7.6 4.0
Used vehicle wholesale
sales 7.3 6.7
Total used 7.5 4.1
Parts and service 37.9 42.8
Finance and insurance 100.0 100.0
Total 11.2 10.3
GROSS PROFIT:
New vehicle retail sales $4,213 $5,649 (25.4) (30.4)
Used vehicle retail
sales 1,417 739 91.7 78.0
Used vehicle wholesale
sales 59 68 (13.2) (18.8)
--- ---
Total used 1,476 807 82.9 69.7
Parts and service 4,382 4,494 (2.5) (9.6)
Finance and insurance 1,651 1,390 18.8 7.8
----- -----
Total $11,722 $12,340 (5.0) (11.8)
UNITS SOLD:
Retail new vehicles sold 2,261 3,254 (30.5)
Retail used vehicles
sold 950 1,045 (9.1)
Wholesale used vehicles
sold 304 300 1.3
--- ---
Total used 1,254 1,345 (6.8)
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $31,734 $27,032 17.4 9.1
Used vehicle retail $19,744 $17,799 10.9 2.8
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $1,863 $1,736 7.3 0.2
Used vehicle retail
sales 1,492 707 111.0 95.8
Used vehicle wholesale
sales 194 227 (14.5) (19.9)
Total used 1,177 600 96.2 82.1
Finance and insurance
(per retail unit) $514 $323 59.1 44.3
OTHER:
SG&A expenses $12,105 $10,100 19.9 11.3
Adjusted SG&A
expenses(2) $11,831 $10,100 17.1 8.8
SG&A as % revenues 11.6 8.5
Adjusted SG&A as %
revenues (2) 11.3 8.5
SG&A as % gross profit 103.3 81.9
Adjusted SG&A as % gross
profit (2) 100.9 81.9
Operating margin % (0.6) 1.5
Adjusted operating
margin % (2) (0.3) 1.6
Nine Months Ended September 30,
2016 2015 % Increase/ Constant Currency % (3)
(Decrease) Increase/ (Decrease)
--------- --------------------
REVENUES:
New vehicle retail sales $204,560 $266,408 (23.2) (13.5)
Used vehicle retail
sales 54,321 56,160 (3.3) 10.1
Used vehicle wholesale
sales 2,058 5,052 (59.3) (52.5)
----- -----
Total used 56,379 61,212 (7.9) 4.9
Parts and service 33,005 35,089 (5.9) 6.5
Finance and insurance 4,661 4,789 (2.7) 9.8
----- -----
Total $298,605 $367,498 (18.7) (8.2)
GROSS MARGIN %:
New vehicle retail sales 5.8 6.8
Used vehicle retail
sales 5.8 4.2
Used vehicle wholesale
sales 6.9 7.3
Total used 5.9 4.4
Parts and service 37.7 43.5
Finance and insurance 100.0 100.0
Total 10.8 11.1
GROSS PROFIT:
New vehicle retail sales $11,789 $18,055 (34.7) (26.1)
Used vehicle retail
sales 3,158 2,331 35.5 51.2
Used vehicle wholesale
sales 141 368 (61.7) (55.5)
--- ---
Total used 3,299 2,699 22.2 36.7
Parts and service 12,444 15,266 (18.5) (7.4)
Finance and insurance 4,661 4,789 (2.7) 9.8
----- -----
Total $32,193 $40,809 (21.1) (10.8)
UNITS SOLD:
Retail new vehicles sold 7,265 9,165 (20.7)
Retail used vehicles
sold 3,312 2,948 12.3
Wholesale used vehicles
sold 760 998 (23.8)
--- ---
Total used 4,072 3,946 3.2
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $28,157 $29,068 (3.1) 9.1
Used vehicle retail $16,401 $19,050 (13.9) (2.0)
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $1,623 $1,970 (17.6) (6.8)
Used vehicle retail
sales 954 791 20.6 34.6
Used vehicle wholesale
sales 186 369 (49.6) (41.5)
Total used 810 684 18.4 32.4
Finance and insurance
(per retail unit) $441 $395 11.6 25.7
OTHER:
SG&A expenses $31,984 $34,543 (7.4) 5.0
Adjusted SG&A
expenses(2) $31,710 $34,543 (8.2) 4.2
SG&A as % revenues 10.7 9.4
Adjusted SG&A as %
revenues (2) 10.6 9.4
SG&A as % gross profit 99.4 84.6
Adjusted SG&A as % gross
profit (2) 98.5 84.6
Operating margin % (0.4) 1.4
Adjusted operating
margin % (2) (0.1) 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.
(3)We present constant currency
information to provide a framework
for assessing how our underlying
businesses performed excluding the
effect of foreign currency rate
fluctuations. To present this
information, current and comparative
prior period results for entities
reporting in currencies other than
United States dollars are converted
into United States dollars using the
average exchange rates from the
comparative period rather than the
actual exchange rates in effect
during the respective periods. The
non-GAAP financial measures
presented above should not be
considered as a substitute for, or
superior to, the measures of
financial performance prepared in
accordance with U.S. GAAP.
Group 1 Automotive, Inc.
Additional Information - Same Store Consolidated (1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended September 30,
2016 2015 % Increase/ Constant Currency % (3)
(Decrease) Increase/ (Decrease)
--------- --------------------
REVENUES:
New vehicle retail sales $1,476,098 $1,566,527 (5.8) (4.3)
Used vehicle retail
sales 665,275 673,302 (1.2) 0.7
Used vehicle wholesale
sales 95,536 97,082 (1.6) 2.2
------ ------
Total used 760,811 770,384 (1.2) 0.9
Parts and service 303,418 295,689 2.6 3.8
Finance and insurance 104,547 106,058 (1.4) (0.6)
------- -------
Total $2,644,874 $2,738,658 (3.4) (1.8)
GROSS MARGIN %:
New vehicle retail sales 5.1 5.0
Used vehicle retail
sales 6.7 6.8
Used vehicle wholesale
sales (1.5) (1.7)
Total used 5.6 5.7
Parts and service 54.2 54.9
Finance and insurance 100.0 100.0
Total 14.6 14.3
GROSS PROFIT:
New vehicle retail sales $74,692 $78,346 (4.7) (2.9)
Used vehicle retail
sales 44,325 45,729 (3.1) (1.6)
Used vehicle wholesale
sales (1,467) (1,610) 8.9 7.9
------ ------
Total used 42,858 44,119 (2.9) (1.4)
Parts and service 164,366 162,392 1.2 2.5
Finance and insurance 104,547 106,058 (1.4) (0.6)
------- -------
Total $386,463 $390,915 (1.1) 0.1
UNITS SOLD:
Retail new vehicles sold 41,989 45,870 (8.5)
Retail used vehicles
sold 31,567 31,791 (0.7)
Wholesale used vehicles
sold 14,015 14,431 (2.9)
------ ------
Total used 45,582 46,222 (1.4)
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $35,154 $34,151 2.9 4.6
Used vehicle retail $21,075 $21,179 (0.5) 1.4
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $1,779 $1,708 4.2 6.0
Used vehicle retail
sales 1,404 1,438 (2.4) (0.9)
Used vehicle wholesale
sales (105) (112) 6.3 5.1
Total used 940 955 (1.6) (0.0)
Finance and insurance
(per retail unit) $1,421 $1,366 4.0 5.0
OTHER:
SG&A expenses $281,098 $280,286 0.3 1.6
Adjusted SG&A
expenses(2) $280,374 $280,286 0.0 1.4
SG&A as % revenues 10.6 10.2
Adjusted SG&A as %
revenues (2) 10.6 10.2
SG&A as % gross profit 72.7 71.7
Adjusted SG&A as % gross
profit (2) 72.5 71.7
Operating margin % 3.1 3.6
Adjusted operating
margin % (2) 3.6 3.6
Nine Months Ended September 30,
2016 2015 % Increase/ Constant Currency % (3)
(Decrease) Increase/ (Decrease)
--------- --------------------
REVENUES:
New vehicle retail sales $4,191,715 $4,373,969 (4.2) (2.4)
Used vehicle retail
sales 1,986,471 1,954,206 1.7 3.4
Used vehicle wholesale
sales 272,485 293,430 (7.1) (4.7)
------- -------
Total used 2,258,956 2,247,636 0.5 2.3
Parts and service 898,003 865,549 3.7 5.1
Finance and insurance 302,730 303,240 (0.2) 0.7
------- -------
Total $7,651,404 $7,790,394 (1.8) (0.1)
GROSS MARGIN %:
New vehicle retail sales 5.1 5.0
Used vehicle retail
sales 6.9 7.0
Used vehicle wholesale
sales 0.0 0.0
Total used 6.1 6.1
Parts and service 53.9 54.3
Finance and insurance 100.0 100.0
Total 14.9 14.5
GROSS PROFIT:
New vehicle retail sales $215,220 $220,825 (2.5) (0.5)
Used vehicle retail
sales 137,034 136,489 0.4 1.7
Used vehicle wholesale
sales 115 135 (14.8) 27.5
--- ---
Total used 137,149 136,624 0.4 1.7
Parts and service 484,283 470,250 3.0 4.2
Finance and insurance 302,730 303,240 (0.2) 0.7
------- -------
Total $1,139,382 $1,130,939 0.7 2.0
UNITS SOLD:
Retail new vehicles sold 119,724 127,997 (6.5)
Retail used vehicles
sold 94,312 92,103 2.4
Wholesale used vehicles
sold 40,011 42,331 (5.5)
------ ------
Total used 134,323 134,434 (0.1)
AVERAGE RETAIL SALES
PRICE:
New vehicle retail $35,011 $34,172 2.5 4.3
Used vehicle retail $21,063 $21,218 (0.7) 0.9
GROSS PROFIT PER UNIT
SOLD:
New vehicle retail sales $1,798 $1,725 4.2 6.4
Used vehicle retail
sales 1,453 1,482 (2.0) (0.7)
Used vehicle wholesale
sales 3 3 - 34.9
Total used 1,021 1,016 0.5 1.8
Finance and insurance
(per retail unit) $1,414 $1,378 2.6 3.5
OTHER:
SG&A expenses $835,506 $816,735 2.3 3.8
Adjusted SG&A
expenses(2) $828,383 $814,212 1.7 3.3
SG&A as % revenues 10.9 10.5
Adjusted SG&A as %
revenues (2) 10.8 10.5
SG&A as % gross profit 73.3 72.2
Adjusted SG&A as % gross
profit (2) 72.7 72.0
Operating margin % 3.3 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.
(3)We present constant currency
information to provide a framework
for assessing how our underlying
businesses performed excluding the
effect of foreign currency rate
fluctuations. To present this
information, current and comparative
prior period results for entities
reporting in currencies other than
United States dollars are converted
into United States dollars using the
average exchange rates from the
comparative period rather than the
actual exchange rates in effect
during the respective periods. The
non-GAAP financial measures
presented above should not be
considered as a substitute for, or
superior to, the measures of
financial performance prepared in
accordance with U.S. GAAP.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - U.S.
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended September 30,
--------------------------------
2016 2015 % Increase/
(Decrease)
---------
SG&A RECONCILIATION:
As reported $246,501 $248,771 (0.9)
Pre-tax adjustments:
Catastrophic events (450) -
Gain (loss) on real estate and
dealership transactions 1,176 -
Adjusted SG&A (1) $247,227 $248,771 (0.6)
SG&A AS % REVENUES:
Unadjusted 10.8 10.6
Adjusted (1) 10.9 10.6
SG&A AS % GROSS PROFIT:
Unadjusted 71.1 71.4
Adjusted (1) 71.3 71.4
OPERATING MARGIN %
Unadjusted 3.4 3.8
Adjusted (1), (2) 3.9 3.8
PRETAX MARGIN %:
Unadjusted 2.3 2.9
Adjusted (1), (2) 2.8 2.9
SAME STORE SG&A RECONCILIATION:
As reported $243,405 $242,056 0.6
Pre-tax adjustments:
Catastrophic events (450) -
Adjusted Same Store SG&A (1) $242,955 $242,056 0.4
SAME STORE SG&A AS % REVENUES:
Unadjusted 10.8 10.6
Adjusted (1) 10.8 10.6
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 71.2 70.7
Adjusted (1) 71.1 70.7
SAME STORE OPERATING MARGIN %
Unadjusted 3.4 3.9
Adjusted (1), (3) 3.9 3.9
Nine Months Ended September 30,
-------------------------------
2016 2015 % Increase/
(Decrease)
---------
SG&A RECONCILIATION:
As reported $737,730 $718,607 2.7
Pre-tax adjustments:
Catastrophic events (5,873) (951)
Gain (loss) on real estate and
dealership transactions 1,856 1,052
Acquisition costs (30) -
Legal settlements - (1,000)
Adjusted SG&A (1) $733,683 $717,708 2.2
SG&A AS % REVENUES:
Unadjusted 11.2 10.8
Adjusted (1) 11.2 10.8
SG&A AS % OF GROSS PROFIT:
Unadjusted 72.0 71.5
Adjusted (1) 71.6 71.4
OPERATING MARGIN %:
Unadjusted 3.7 3.8
Adjusted (1), (2) 3.9 3.9
PRETAX MARGIN %:
Unadjusted 2.5 2.9
Adjusted (1), (2) 2.8 2.9
SAME STORE SG&A RECONCILIATION:
As reported $722,654 $700,646 3.1
Pre-tax adjustments:
Catastrophic events (5,873) (951)
Gain (loss) on real estate and
dealership transactions (385) (364)
Acquisition costs (30) -
Legal settlements - (1,000)
Adjusted Same Store SG&A (1) $716,366 $698,331 2.6
SAME STORE SG&A AS % REVENUES:
Unadjusted 11.3 10.8
Adjusted (1) 11.2 10.8
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 72.2 71.1
Adjusted (1) 71.5 70.8
SAME STORE OPERATING MARGIN %
Unadjusted 3.7 3.9
Adjusted (1), (3) 3.9 4.0
(1) We have
included
certain non-
GAAP
financial
measures as
defined under
SEC rules,
which exclude
certain
items. These
adjusted
measures are
not measures
of financial
performance
under 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
$10,856 and
$12,389 for
the three and
nine months
ended
September 30,
2016 and $288
and $786 for
the three and
nine months
ended
September 30,
2015.
(3) Excludes the
impact of
Same Store
SG&A
reconciling
items above,
as well as
non-cash
asset
impairment
charges of
$10,776 and
$12,310 for
the three and
nine months
ended
September 30,
2016 and $288
and $786 for
the three and
nine months
ended
September 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 September 30,
--------------------------------
2016 2015 % Increase/
(Decrease)
---------
OPERATING MARGIN %
Unadjusted 1.4 2.1
Adjusted (1), (2) 1.4 2.2
PRETAX MARGIN %:
Unadjusted 0.9 1.6
Adjusted (1), (2) 0.9 1.7
SAME STORE OPERATING MARGIN %
Unadjusted 2.2 2.1
Adjusted (1), (3) 2.2 2.2
Nine Months Ended September 30,
-------------------------------
2016 2015 % Increase/
(Decrease)
---------
SG&A RECONCILIATION:
As reported $119,154 $81,528 46.2
Pre-tax adjustments:
Severance costs - (208)
Acquisition costs (561) -
Adjusted SG&A (1) $118,593 $81,320 45.8
SG&A AS % REVENUES:
Unadjusted 8.9 8.7
Adjusted (1) 8.9 8.7
SG&A AS % OF GROSS PROFIT:
Unadjusted 80.2 78.1
Adjusted (1) 79.8 77.9
OPERATING MARGIN %:
Unadjusted 1.8 2.1
Adjusted (1), (2) 1.9 2.1
PRETAX MARGIN %:
Unadjusted 1.3 1.6
Adjusted (1), (2) 1.3 1.7
SAME STORE SG&A RECONCILIATION:
As reported $80,868 $81,546 (0.8)
Pre-tax adjustments:
Severance costs - (208)
Acquisition costs (561) -
Adjusted Same Store SG&A (1) $80,307 $81,338 (1.3)
SAME STORE SG&A AS % REVENUES:
Unadjusted 8.7 8.7
Adjusted (1) 8.6 8.7
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 76.5 78.2
Adjusted (1) 75.9 78.0
SAME STORE OPERATING MARGIN %
Unadjusted 2.3 2.1
Adjusted (1), (3) 2.4 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,
as well as
non-cash
asset
impairment
charges of
$333 for the
three and
nine months
ended
September 30,
2015.
(3) Excludes the
impact of
Same Store
SG&A
reconciling
items above,
as well as
non-cash
asset
impairment
charges of
$333 for the
three and
nine months
ended
September 30,
2015.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - Brazil
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended September 30,
--------------------------------
2016 2015 % Increase/
(Decrease)
---------
SG&A RECONCILIATION:
As reported $12,896 $12,117 6.4
Pre-tax adjustments:
Foreign transaction tax (274) -
Adjusted SG&A (1) $12,622 $12,117 4.2
SG&A AS % REVENUES:
Unadjusted 11.5 9.4
Adjusted (1) 11.2 9.4
SG&A AS % GROSS PROFIT:
Unadjusted 103.6 87.8
Adjusted (1) 101.4 87.8
OPERATING MARGIN %
Unadjusted (0.6) 0.8
Adjusted (1), (2) (0.4) 1.0
PRETAX MARGIN %:
Unadjusted (0.8) 0.4
Adjusted (1), (2) (0.5) 0.6
SAME STORE SG&A RECONCILIATION:
As reported $12,105 $10,100 19.9
Pre-tax adjustments:
Foreign transaction tax (274) -
Adjusted Same Store SG&A (1) $11,831 $10,100 17.1
SAME STORE SG&A AS % REVENUES:
Unadjusted 11.6 8.5
Adjusted (1) 11.3 8.5
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 103.3 81.9
Adjusted (1) 100.9 81.9
SAME STORE OPERATING MARGIN %
Unadjusted (0.6) 1.5
Adjusted (1), (3) (0.3) 1.6
Nine Months Ended September 30,
-------------------------------
2016 2015 % Increase/
(Decrease)
---------
SG&A RECONCILIATION:
As reported $34,808 $40,915 (14.9)
Pre-tax adjustments:
Gain (loss) on real estate and
dealership transactions (372) -
Foreign transaction tax (274) -
Adjusted SG&A (1) $34,162 $40,915 (16.5)
SG&A AS % REVENUES:
Unadjusted 11.1 10.4
Adjusted (1) 10.9 10.4
SG&A AS % OF GROSS PROFIT:
Unadjusted 104.6 91.9
Adjusted (1) 102.6 91.9
OPERATING MARGIN %:
Unadjusted (0.9) 0.3
Adjusted (1), (2) (0.5) 0.6
PRETAX MARGIN %:
Unadjusted (1.0) (0.2)
Adjusted (1), (2) (0.7) 0.0
SAME STORE SG&A RECONCILIATION:
As reported $31,984 $34,543 (7.4)
Pre-tax adjustments:
Foreign transaction tax (274) -
Adjusted Same Store SG&A (1) $31,710 $34,543 (8.2)
SAME STORE SG&A AS % REVENUES:
Unadjusted 10.7 9.4
Adjusted (1) 10.6 9.4
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 99.4 84.6
Adjusted (1) 98.5 84.6
SAME STORE OPERATING MARGIN %
Unadjusted (0.4) 1.4
Adjusted (1), (3) (0.1) 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
SG&A
reconciling
items above,
as well as
non-cash
asset
impairment
charges of
$423 for the
nine months
ended
September 30,
2016 and $298
and $839 for
the three and
nine months
ended
September 30,
2015.
(3) Excludes the
impact of
Same Store
SG&A
reconciling
items above,
as well as
non-cash
asset
impairment
charges of
$423 for the
nine months
ended
September 30,
2016 and $215
for the three
and nine
months ended
September 30,
2015.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - CONSOLIDATED
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended September 30,
--------------------------------
2016 2015 % Increase/
(Decrease)
---------
NET INCOME RECONCILIATION:
As reported $35,366 $45,261 (21.9)
Pre-tax adjustments:
Catastrophic events
Pre-tax 450 -
Tax impact (169) -
(Gain) loss on real estate and dealership
transactions
Pre-tax (1,114) -
Tax impact 418 -
Foreign transaction tax
Pre-tax 274 -
Tax impact - -
Non-cash asset impairment
Pre-tax 10,793 916
Tax impact (4,047) (140)
Adjusted net income (1) $41,971 $46,037 (8.8)
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED
COMMON SHARES RECONCILIATION:
Adjusted net income (1) $41,971 $46,037 (8.8)
Less: Adjusted earnings allocated to
participating securities 1,695 1,759 (3.7)
Adjusted net income available to diluted
common shares (1) $40,276 $44,278 (9.0)
DILUTED (LOSS) INCOME PER COMMON SHARE RECONCILIATION:
As reported $1.65 $1.88 (12.2)
Pre-tax adjustments:
Catastrophic events 0.01 -
Gain (loss) on real estate and dealership
transactions (0.03) -
Foreign transaction tax 0.01 -
Non-cash asset impairment 0.32 0.03
Adjusted diluted income per share (1) $1.96 $1.91 2.6
SG&A RECONCILIATION:
As reported $299,006 $289,012 3.5
Pre-tax adjustments:
Catastrophic events (450) -
Gain (loss) on real estate and dealership
transactions 1,176 -
Foreign transaction tax (274) -
Adjusted SG&A (1) $299,458 $289,012 3.6
SG&A AS % REVENUES:
Unadjusted 10.6 10.3
Adjusted (1) 10.6 10.3
SG&A AS % GROSS PROFIT:
Unadjusted 73.5 72.5
Adjusted (1) 73.6 72.5
OPERATING MARGIN %
Unadjusted 3.0 3.5
Adjusted (1), (2) 3.3 3.5
PRETAX MARGIN %:
Unadjusted 2.0 2.6
Adjusted (1), (2) 2.3 2.6
SAME STORE SG&A RECONCILIATION:
As reported $281,098 $280,286 0.3
Pre-tax adjustments:
Catastrophic events (450) -
Foreign transaction tax (274) -
Adjusted Same Store SG&A (1) $280,374 $280,286 0.0
SAME STORE SG&A AS % REVENUES:
Unadjusted 10.6 10.2
Adjusted (1) 10.6 10.2
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 72.7 71.7
Adjusted (1) 72.5 71.7
SAME STORE OPERATING MARGIN %
Unadjusted 3.1 3.6
Adjusted (1), (3) 3.6 3.6
Nine Months Ended September 30,
-------------------------------
2016 2015 % Increase/
(Decrease)
---------
NET INCOME RECONCILIATION:
As reported $116,237 $127,385 (8.8)
Pre-tax adjustments:
Catastrophic events
Pre-tax 5,873 951
Tax impact (2,207) (359)
(Gain) loss on real estate and dealership
transactions
Pre-tax (1,000) (1,052)
Tax impact 672 452
Severance costs
Pre-tax - 208
Tax impact - (41)
Acquisition costs including related tax
impact
Pre-tax 591 -
Tax impact (11) -
Legal settlements
Pre-tax - 1,000
Tax impact - (390)
Foreign transaction tax
Pre-tax 274 -
Tax impact - -
Non-cash asset impairment
Pre-tax 12,327 1,958
Tax impact (4,634) (334)
Foreign deferred income tax benefit
Pre-tax - -
Tax impact (1,686) -
Adjusted net income (1) $126,436 $129,778 (2.6)
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED
COMMON SHARES RECONCILIATION:
Adjusted net income (1) $126,436 $129,778 (2.6)
Less: Adjusted earnings allocated to
participating securities 5,061 4,997 1.3
Adjusted net income available to diluted
common shares (1) $121,375 $124,781 (2.7)
DILUTED INCOME PER COMMON SHARE RECONCILIATION:
As reported $5.22 $5.26 (0.8)
Pre-tax adjustments:
Catastrophic events 0.16 0.02
Gain (loss) on real estate and dealership
transactions (0.01) (0.02)
Severance costs - 0.01
Acquisition costs including related tax
impact 0.02 -
Legal settlements - 0.02
Foreign transaction tax 0.01 -
Non-cash asset impairment 0.35 0.07
Foreign deferred income tax benefit (0.07) -
Adjusted diluted income per share (1) $5.68 $5.36 6.0
SG&A RECONCILIATION:
As reported $891,692 $841,050 6.0
Pre-tax adjustments:
Catastrophic events (5,873) (951)
Gain (loss) on real estate and dealership
transactions 1,485 1,052
Severance costs - (208)
Acquisition costs (591) -
Legal settlements - (1,000)
Foreign transaction tax (274) -
Adjusted SG&A (1) $886,439 $839,943 5.5
SG&A AS % REVENUES:
Unadjusted 10.9 10.6
Adjusted (1) 10.8 10.6
SG&A AS % OF GROSS PROFIT:
Unadjusted 73.9 72.9
Adjusted (1) 73.5 72.8
OPERATING MARGIN %:
Unadjusted 3.2 3.5
Adjusted (1), (2) 3.4 3.5
PRETAX MARGIN %:
Unadjusted 2.2 2.6
Adjusted (1), (2) 2.4 2.6
SAME STORE SG&A RECONCILIATION:
As reported $835,506 $816,735 2.3
Pre-tax adjustments:
Catastrophic events (5,873) (951)
Gain (loss) on real estate and dealership
transactions (385) (364)
Severance costs - (208)
Acquisition costs (591) -
Legal settlements - (1,000)
Foreign transaction tax (274) -
Adjusted Same Store SG&A (1) $828,383 $814,212 1.7
SAME STORE SG&A AS % REVENUES:
Unadjusted 10.9 10.5
Adjusted (1) 10.8 10.5
SAME STORE SG&A AS % GROSS PROFIT:
Unadjusted 73.3 72.2
Adjusted (1) 72.7 72.0
SAME STORE OPERATING MARGIN %
Unadjusted 3.3 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
Same Store
SG&A
reconciling
items above,
as well as
non-cash
asset
impairment
charges of
$10,856 and
$12,389 for
the three and
nine months
ended
September 30,
2016 $288 and
$786 for the
three and
nine months
ended
September 30,
2015.
(3) Excludes the
impact of
Same Store
SG&A
reconciling
items above,
as well as
non-cash
asset
impairment
charges of
$10,776 and
$12,310 for
the three and
nine months
ended
September 30,
2016 and $288
and $786 for
the three and
nine months
ended
September 30,
2015.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/group-1-automotive-reports-third-quarter-2016-results-300348242.html
SOURCE Group 1 Automotive, Inc.
