Market Overview

Group 1 Automotive Reports Record Third Quarter Earnings

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Record Revenue and Strong Expense Leverage Drive 21.7% Adjusted EPS Increase

HOUSTON, Oct. 27, 2015 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), an international, Fortune 500 automotive retailer, today reported record third quarter 2015 adjusted net income of $46.0 million, a 15.7 percent increase over the prior year. Adjusted diluted earnings per share of $1.91 were also a third quarter record, reflecting a 21.7 percent increase from the comparable, adjusted prior-year period.

These third quarter results exclude approximately $800 thousand of net, after-tax charges related to non-cash asset impairments. GAAP net income and diluted earnings per share were $45.3 million and $1.88, respectively. Reconciliations of non-GAAP financial measures are included in the attached financial tables.

"We are delighted to announce an all-time quarterly revenue record of $2.8 billion," said Earl J. Hesterberg, Group 1's president and chief executive officer. "Continued expense leverage in the United States and strong top-line growth in both the U.S. and U.K. delivered a record third quarter adjusted diluted EPS of $1.91. We were particularly pleased with the double-digit growth in used vehicle unit Same Store sales that all three of our markets delivered this quarter. In addition, our U.K. operations had an outstanding quarter, with revenue up 39.6 percent on a constant currency basis. Finally, while overall market conditions continue to be challenging in Brazil, with new vehicle industry volumes declining over 25 percent on a year-over-year basis, our team in Brazil grew Same Store revenue by 7.1 percent on a constant currency basis and delivered another profitable quarter," Hesterberg added.

Consolidated Results for Third Quarter 2015 (year-over-year comparable basis)

  • Total revenue increased 6.6 percent to an all-time quarterly record of $2.8 billion; total gross profit grew 6.3 percent, to $398.4 million, also an all-time quarterly record. On a constant currency basis, revenues were up 10.2 percent.
  • New vehicle revenue increased 5.3 percent, reflecting 5.9 percent higher unit sales. On a Same Store basis, new unit sales increased 19.1 percent in the U.K., 4.4 percent in the U.S., and 1.3 percent in Brazil.
  • Used vehicle retail revenue increased 11.6 percent, primarily reflecting 12.9 percent higher used retail unit sales. On a Same Store basis, used retail unit sales increased 10.3 percent in the U.S., 19.0 percent in the U.K., and 15.3 percent in Brazil.
  • Parts and service gross profit increased 7.8 percent on revenue growth of 4.0 percent (7.0 percent on a constant currency basis). U.S. Same Store parts and service gross profit increased 9.4 percent on revenue growth of 6.6 percent.
  • Finance and Insurance (F&I) gross profit increased 10.9 percent, as total retail units sold increased 8.7 percent and F&I per retail unit improved $27, to $1,352. U.S. Same Store F&I gross profit grew 10.8 percent, as F&I per retail unit improved $55, to $1,518.
  • Adjusted selling, general and administrative (SG&A) expenses as a percent of gross profit improved 140 basis points, to 72.5 percent. On a GAAP basis, SG&A expenses as a percent of gross profit increased 200 basis points, to 72.5 percent.
  • Adjusted operating margin improved 20 basis points, to 3.5 percent. On a GAAP basis, operating margin improved 10 basis points, to 3.5 percent.

Segment Results for Third Quarter 2015 (year-over-year comparable basis)

  • United States:
    The Company's U.S. operations accounted for 83.7 percent of total revenues and 87.4 percent of total gross profit. Total U.S. revenues increased 7.7 percent, to $2.3 billion. This increase reflects improvements in all areas of the business, including growth of 6.6 percent and 10.2 percent in new and total used vehicle sales, respectively, and a 12.0 percent increase in F&I revenue, driven by the increase in volume and improved income per retail unit of $65 to $1,515. In addition, parts and service revenue increased 6.1 percent. The higher revenue and expanded parts and service gross margin of 180 basis points drove total U.S. gross profit growth of 8.2 percent.

    On a comparable basis, adjusted SG&A expenses as a percent of gross margin improved 150 basis points to 71.4 percent and adjusted operating margin grew 20 basis points to 3.8 percent.

  • United Kingdom:
    The Company's U.K. operations accounted for 11.7 percent of total revenues and 9.1 percent of total gross profit. Total revenue increased 29.8 percent (39.6 percent on a constant currency basis) to $327.4 million, and gross profit increased 21.5 percent (30.5 percent on a constant currency basis). The revenue increase was driven by new vehicle retail growth of 34.2 percent, total used vehicle growth of 25.1 percent, parts and service growth of 23.1 percent, and an F&I revenue increase of 27.0 percent.

  • Brazil: The Company's Brazil operations accounted for 4.6 percent of total revenues and 3.5 percent of total gross profit. On a Same Store constant currency basis, revenues increased 7.1 percent, driven by a 1.3 percent increase in new vehicle retail unit sales, a 15.3 percent increase in used retail unit sales, and a 3.7 percent increase in parts and service revenues.  

Corporate Development

During the third quarter of 2015, the Company acquired Mercedes-Benz, Sprinter, and Smart franchises within the greater metropolitan area of Austin, Texas that are expected to generate approximately $100 million in annual revenues.

Year to date, the Company has acquired five franchises that are expected to generate approximately $340 million in annual revenues and disposed of four franchises that generated trailing-twelve-month revenues of approximately $30 million.

Share Repurchase Authorization

During the quarter, the Company repurchased 443,447 shares at an average price per share of $85.69 for a total of $38.0 million. Year to date, the Company has repurchased approximately 850,000 shares at an average price of $83.67 for a total of $71.1 million. As of September 30, 2015, $28.3 million remains available under the Company's prior common stock share repurchase authorization. Future repurchases may be made from time to time, based on market conditions, legal requirements and other corporate considerations, in the open market or in privately negotiated transactions.

Third Quarter Earnings Conference Call Details

The Company's senior management will host a conference call today at 10 a.m. ET to discuss the third quarter financial results and the Company's outlook and strategy.
The conference call will be simulcast live on the Internet at www.group1auto.com, then click on 'Investor Relations' and then 'Events' or through this link: http://www.group1corp.com/events. A webcast replay will be available for 30 days.

The conference call will also be available live by dialing in 15 minutes prior to the start of the call at:

Domestic:

1-888-317-6003

International:

1-412-317-6061

Access Code:

5636460

A telephonic replay will be available following the call through November 20, 2015 at 11:59 p.m. ET by dialing:

Domestic:

1-877-344-7529

International:

1-412-317-0088

Access Code:

10074627

About Group 1 Automotive, Inc.

Group 1 owns and operates 153 automotive dealerships, 200 franchises, and 35 collision centers in the United States, the United Kingdom and Brazil that offer 32 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service and insurance contracts; provides automotive maintenance and repair services; and sells vehicle parts.

Group 1 Automotive can be reached on the Internet at www.group1auto.com.

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements related to future, not past, events and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. In this context, the forward-looking statements often include statements regarding our goals, plans, projections and guidance regarding our financial position, results of operations, market position, pending and potential future acquisitions and business strategy, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should," "foresee," "may" or "will" and similar expressions. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Any such forward-looking statements are not assurances of future performance and involve risks and uncertainties that may cause actual results to differ materially from those set forth in the statements. These risks and uncertainties include, among other things, (a) general economic and business conditions, (b) the level of manufacturer incentives, (c) the future regulatory environment, (d) our ability to obtain an inventory of desirable new and used vehicles, (e) our relationship with our automobile manufacturers and the willingness of manufacturers to approve future acquisitions, (f) our cost of financing and the availability of credit for consumers, (g) our ability to complete acquisitions and dispositions and the risks associated therewith, (h) foreign exchange controls and currency fluctuations, and (i) our ability to retain key personnel. For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with the SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.

Investor contacts:
Sheila Roth
Manager, Investor Relations
Group 1 Automotive, Inc.
713-647-5741 | sroth@group1auto.com

Media contacts:
Pete DeLongchamps
V.P. Manufacturer Relations, Financial Services and Public Affairs
Group 1 Automotive, Inc.
713-647-5770 | pdelongchamps@group1auto.com
or
Clint Woods
Pierpont Communications, Inc.
713-627-2223 | cwoods@piercom.com

 

Group 1 Automotive, Inc.

Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)








 Three Months Ended September 30, 


2015


2014


% Change

REVENUES:






New vehicle retail sales

$ 1,601,213


$ 1,521,246


5.3

Used vehicle retail sales

687,637


615,924


11.6

Used vehicle wholesale sales

100,483


100,347


0.1

Parts and service

303,557


291,816


4.0

Finance and insurance

107,679


97,115


10.9

Total revenues

2,800,569


2,626,448


6.6







COST OF SALES:






New vehicle retail sales

1,521,721


1,441,016


5.6

Used vehicle retail sales

641,055


571,613


12.1

Used vehicle wholesale sales

102,318


101,643


0.7

Parts and service

137,093


137,467


(0.3)

Total cost of sales

2,402,187


2,251,739


6.7







GROSS PROFIT

398,382


374,709


6.3







SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

289,012


264,233


9.4







DEPRECIATION AND AMORTIZATION EXPENSE

11,811


10,746


9.9







ASSET IMPAIRMENTS

916


9,373


(90.2)







OPERATING INCOME

96,643


90,357


7.0







OTHER EXPENSE:






Floorplan interest expense

(9,685)


(10,452)


(7.3)

Other interest expense, net

(13,922)


(13,246)


5.1

Loss on extinguishment of long-term debt


(22,790)


(100.0)

INCOME BEFORE INCOME TAXES

73,036


43,869


66.5







PROVISION FOR INCOME TAXES

(27,775)


(17,707)


56.9







NET INCOME

$       45,261


$       26,162


73.0

Earnings allocated to participating securities

$       (1,729)


$       (1,000)


72.9

Earnings available to diluted common shares

$       43,532


$       25,162


73.0

DILUTED EARNINGS PER SHARE

$           1.88


$           1.03


82.5

Weighted average dilutive common shares outstanding

23,137


24,432


(5.3)

Weighted average participating securities

925


971


(4.7)

Total weighted average shares outstanding

24,062


25,403


(5.3)








 Nine Months Ended September 30, 


2015


2014


% Change

REVENUES:






New vehicle retail sales

$ 4,468,200


$ 4,256,146


5.0

Used vehicle retail sales

1,993,124


1,743,071


14.3

Used vehicle wholesale sales

302,186


284,491


6.2

Parts and service

888,939


844,340


5.3

Finance and insurance

307,454


270,901


13.5

Total revenues

7,959,903


7,398,949


7.6







COST OF SALES:






New vehicle retail sales

4,242,847


4,028,164


5.3

Used vehicle retail sales

1,854,361


1,610,293


15.2

Used vehicle wholesale sales

302,276


281,434


7.4

Parts and service

406,580


397,079


2.4

Total cost of sales

6,806,064


6,316,970


7.7







GROSS PROFIT

1,153,839


1,081,979


6.6







SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

841,050


793,761


6.0







DEPRECIATION AND AMORTIZATION EXPENSE

35,441


31,424


12.8







ASSET IMPAIRMENTS

1,955


11,094


(82.4)







OPERATING INCOME

275,393


245,700


12.1







OTHER EXPENSE:






Floorplan interest expense

(29,046)


(31,695)


(8.4)

Other interest expense, net

(42,061)


(36,326)


15.8

Loss on extinguishment of long-term debt


(46,403)


(100.0)

INCOME BEFORE INCOME TAXES

204,286


131,276


55.6







PROVISION FOR INCOME TAXES

(76,901)


(56,949)


35.0







NET INCOME

$     127,385


$       74,327


71.4

Earnings allocated to participating securities

$       (4,905)


$       (2,769)


77.1

Earnings available to diluted common shares

$     122,480


$       71,558


71.2

DILUTED EARNINGS PER SHARE

$           5.26


$           2.82


86.5

Weighted average dilutive common shares outstanding

23,298


25,363


(8.1)

Weighted average participating securities

934


973


(4.0)

Total weighted average shares outstanding

24,232


26,336


(8.0)

 

Group 1 Automotive, Inc.

Consolidated Balance Sheets

(Dollars in thousands)










September 30,


December 31,





2015


2014


% Change

 ASSETS: 


(Unaudited)





 CURRENT ASSETS: 







 Cash and cash equivalents 


$             21,968


$            40,975


(46.4)

 Contracts in transit and vehicle receivables, net 


205,636


237,448


(13.4)

 Accounts and notes receivable, net 


147,110


151,330


(2.8)

 Inventories, net 


1,634,421


1,556,705


5.0

 Deferred income taxes 


13,099


11,062


18.4

 Prepaid expenses and other current assets 


22,556


37,699


(40.2)

 Total current assets 


2,044,790


2,035,219


0.5

 PROPERTY AND EQUIPMENT, net 


978,892


950,388


3.0

 GOODWILL AND INTANGIBLE FRANCHISE RIGHTS 


1,252,402


1,134,324


10.4

 OTHER ASSETS 


15,966


21,561


(25.9)

 Total assets 


$        4,292,050


$       4,141,492


3.6








 LIABILITIES AND STOCKHOLDERS' EQUITY: 







 CURRENT LIABILITIES: 







 Floorplan notes payable - credit facility and other 


$        1,177,513


$       1,143,246


3.0

 Offset account related to floorplan notes payable - credit facility 


(28,073)


(39,616)


(29.1)

 Floorplan notes payable - manufacturer affiliates 


347,657


307,656


13.0

 Offset account related to floorplan notes payable - manufacturer affiliates 


(20,001)


(22,500)


(11.1)

 Current maturities of long-term debt  


55,959


72,630


(23.0)

 Accounts payable 


290,509


288,320


0.8

 Accrued expenses 


158,283


172,463


(8.2)

 Total current liabilities 


1,981,847


1,922,199


3.1

 5.00% SENIOR NOTES (aggregate principal of $550,000 at September 30, 2015 and December 31, 2014) 


540,957


540,100


0.2

 REAL ESTATE CREDIT FACILITY, net of current maturities 


24,594


27,099


(9.2)

 ACQUISITION LINE 


138,201


69,713


98.2

 OTHER REAL ESTATE RELATED AND LONG-TERM DEBT, net of current maturities 


331,194


319,984


3.5

 CAPITAL LEASE OBLIGATIONS RELATED TO REAL ESTATE, net of current maturities 


49,215


51,941


(5.2)

 DEFERRED INCOME TAXES 


147,296


141,239


4.3

 LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES 


39,724


25,311


56.9

 OTHER LIABILITIES 


69,694


65,896


5.8

 STOCKHOLDERS' EQUITY: 







 Common stock 


257


257


-

 Additional paid-in capital 


288,754


286,854


0.7

 Retained earnings 


964,703


852,057


13.2

 Accumulated other comprehensive loss 


(145,805)


(81,984)


77.8

 Treasury stock 


(138,581)


(79,174)


75.0

 Total stockholders' equity 


969,328


978,010


(0.9)

 Total liabilities and stockholders' equity 


$        4,292,050


$       4,141,492


3.6

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)














Three Months Ended


Nine Months Ended




September 30,


September 30,




2015 (%)


2014 (%)


2015 (%)


2014 (%)

NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:








Region

Geographic Market









East

Massachusetts


6.0


6.6


6.1


5.9


Georgia


4.5


4.8


4.6


4.7


New Jersey


2.3


2.7


2.3


3.2


Florida


2.3


1.4


2.0


1.4


New Hampshire


2.1


2.1


2.0


2.2


Louisiana


1.5


1.6


1.6


1.7


Mississippi


1.5


1.4


1.5


1.4


South Carolina


1.4


1.6


1.4


1.5


Alabama


0.6


0.7


0.7


0.8


Maryland


0.5


0.5


0.5


0.5


New York



1.2



1.7




22.7


24.6


22.7


25.0











West

Texas


38.6


37.1


38.4


35.4


California


9.5


9.3


9.7


9.6


Oklahoma


7.8


8.6


7.7


8.4


Kansas


2.0


2.1


2.1


2.3


Louisiana


0.7


0.6


0.7


0.6




58.6


57.7


58.6


56.3











International

United Kingdom


11.1


8.5


11.0


8.9


Brazil


7.6


9.2


7.7


9.8




100.0


100.0


100.0


100.0











NEW VEHICLE UNIT SALES BRAND MIX:









Toyota/Scion/Lexus


26.6


28.3


26.6


27.2

Ford/Lincoln


11.6


10.4


11.6


11.1

BMW/MINI


11.3


10.7


11.4


11.2

Honda/Acura


11.1


10.5


10.9


11.2

Nissan


8.0


8.9


8.4


9.3

Chevrolet/GMC/Buick/Cadillac


7.8


7.0


7.5


6.0

Volkswagen/Audi/Porsche


7.7


6.2


7.0


6.3

Hyundai/Kia


5.4


5.7


5.8


5.5

Chrysler/Dodge/Jeep/RAM


4.6


4.4


4.6


4.4

Mercedes-Benz/smart/Sprinter


3.8


4.2


4.1


4.2

Other


2.1


3.7


2.1


3.6




100.0


100.0


100.0


100.0

 

Group 1 Automotive, Inc.

Additional Information - U.S.

(Unaudited)

(Dollars in thousands, except per unit amounts)










Three Months Ended September 30,



2015


2014


% Change

REVENUES:







New vehicle retail sales


$   1,327,049


$   1,245,430


6.6

Used vehicle retail sales


577,426


515,911


11.9

Used vehicle wholesale sales


74,161


75,272


(1.5)

Total used


651,587


591,183


10.2

Parts and service


264,979


249,724


6.1

Finance and insurance


99,952


89,268


12.0

Total


$   2,343,567


$   2,175,605


7.7








GROSS MARGIN %:







New vehicle retail sales


4.7


5.0



Used vehicle retail sales


7.1


7.4



Used vehicle wholesale sales


(2.5)


(1.9)



Total used


6.0


6.2



Parts and service


55.4


53.6



Finance and insurance


100.0


100.0



Total


14.9


14.8










GROSS PROFIT:







New vehicle retail sales


$        62,428


$        61,975


0.7

Used vehicle retail sales


41,053


38,251


7.3

Used vehicle wholesale sales


(1,855)


(1,431)


29.6

Total used


39,198


36,820


6.5

Parts and service


146,737


133,874


9.6

Finance and insurance


99,952


89,268


12.0

Total


$      348,315


$      321,937


8.2








UNITS SOLD:







Retail new vehicles sold


38,331


36,649


4.6

Retail used vehicles sold


27,664


24,917


11.0

Wholesale used vehicles sold


11,733


11,984


(2.1)

Total used


39,397


36,901


6.8








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$        34,621


$        33,983


1.9

Used vehicle retail


$        20,873


$        20,705


0.8








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$          1,629


$          1,691


(3.7)

Used vehicle retail sales


1,484


1,535


(3.3)

Used vehicle wholesale sales


(158)


(119)


32.8

Total used


995


998


(0.3)

Finance and insurance (per retail unit)


$          1,515


$          1,450


4.5

OTHER: (1)







SG&A expenses


$      248,771


$      234,849


5.9

SG&A as % revenues


10.6


10.8



SG&A as % gross profit


71.4


72.9



Operating margin %


3.8


3.6



Pretax margin %


2.9


2.6










INTEREST EXPENSE:







Floorplan interest


$         (8,964)


$         (8,543)


4.9

Floorplan assistance


13,344


11,876


12.4

Net floorplan income


$          4,380


$          3,333


31.4

Other interest expense, net


$       (12,737)


$       (12,265)


3.8

















Nine Months Ended September 30,



2015


2014


% Change

REVENUES:







New vehicle retail sales


$   3,693,777


$   3,449,303


7.1

Used vehicle retail sales


1,661,932


1,440,473


15.4

Used vehicle wholesale sales


217,032


208,392


4.1

Total used


1,878,964


1,648,865


14.0

Parts and service


771,986


723,839


6.7

Finance and insurance


284,787


248,820


14.5

Total


$   6,629,514


$   6,070,827


9.2








GROSS MARGIN %:







New vehicle retail sales


4.8


5.1



Used vehicle retail sales


7.3


8.0



Used vehicle wholesale sales


(0.1)


0.9



Total used


6.5


7.1



Parts and service


54.8


53.6



Finance and insurance


100.0


100.0



Total


15.2


15.3










GROSS PROFIT:







New vehicle retail sales


$      175,549


$      175,006


0.3

Used vehicle retail sales


121,906


114,613


6.4

Used vehicle wholesale sales


(167)


1,964


(108.5)

Total used


121,739


116,577


4.4

Parts and service


422,912


388,042


9.0

Finance and insurance


284,787


248,820


14.5

Total


$   1,004,987


$      928,445


8.2








UNITS SOLD:







Retail new vehicles sold


106,651


101,281


5.3

Retail used vehicles sold


79,647


70,367


13.2

Wholesale used vehicles sold


33,542


32,395


3.5

Total used


113,189


102,762


10.1








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$        34,634


$        34,057


1.7

Used vehicle retail


$        20,866


$        20,471


1.9








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$          1,646


$          1,728


(4.7)

Used vehicle retail sales


1,531


1,629


(6.0)

Used vehicle wholesale sales


(5)


61


(108.2)

Total used


1,076


1,134


(5.1)

Finance and insurance (per retail unit)


$          1,529


$          1,450


5.4








OTHER: (1)







SG&A expenses


$      717,708


$      677,142


6.0

SG&A as % revenues


10.8


11.2



SG&A as % gross profit


71.4


72.9



Operating margin %


3.9


3.7



Pretax margin %


2.9


2.7










INTEREST EXPENSE:







 Floorplan interest 


$       (26,440)


$       (25,489)


3.7

 Floorplan assistance 


36,503


32,969


10.7

 Net floorplan income 


$        10,063


$          7,480


34.5

 Other interest expense, net 


$       (38,534)


$       (34,327)


12.3








(1)These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.

 

Group 1 Automotive, Inc.

Additional Information - U.K.

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended September 30,



2015


2014


% Change


Local Currency
% Change

REVENUES:









New vehicle retail sales


$  180,967


$  134,859


34.2


44.0

Used vehicle retail sales


89,321


70,163


27.3


37.1

Used vehicle wholesale sales


24,859


21,110


17.8


27.0

Total used


114,180


91,273


25.1


34.8

Parts and service


26,193


21,272


23.1


32.7

Finance and insurance


6,091


4,797


27.0


36.6

Total


$  327,431


$  252,201


29.8


39.6










GROSS MARGIN %:









New vehicle retail sales


6.1


6.9





Used vehicle retail sales


5.2


5.9





Used vehicle wholesale sales


(0.3)


(0.8)





Total used


4.0


4.4





Parts and service


55.6


55.2





Finance and insurance


100.0


100.0





Total


11.1


11.8














GROSS PROFIT:









New vehicle retail sales


$    11,060


$      9,305


18.9


27.0

Used vehicle retail sales


4,631


4,165


11.2


19.5

Used vehicle wholesale sales


(73)


(174)


(58.0)


(53.4)

Total used


4,558


3,991


14.2


22.7

Parts and service


14,554


11,746


23.9


33.5

Finance and insurance


6,091


4,797


27.0


36.6

Total


$    36,263


$    29,839


21.5


30.5










UNITS SOLD:









Retail new vehicles sold


5,213


3,773


38.2



Retail used vehicles sold


3,582


2,649


35.2



Wholesale used vehicles sold


2,791


2,183


27.9



Total used


6,373


4,832


31.9












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$    34,715


$    35,743


(2.9)


4.2

Used vehicle retail


$    24,936


$    26,487


(5.9)


1.4










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$      2,122


$      2,466


(13.9)


(8.1)

Used vehicle retail sales


1,293


1,572


(17.7)


(11.6)

Used vehicle wholesale sales


(26)


(80)


(67.5)


(63.5)

Total used


715


826


(13.4)


(6.9)

Finance and insurance (per retail unit)


$         693


$         747


(7.2)


(0.2)

OTHER: (1)









SG&A expenses


$    28,124


$    22,275


26.3


36.0

SG&A as % revenues


8.6


8.8





SG&A as % gross profit


77.6


74.7





Operating margin %


2.2


2.7





Pretax margin %


1.7


2.3














INTEREST EXPENSE:









Floorplan interest


$        (625)


$        (419)


49.2



Floorplan assistance


201


246


(18.3)



Net floorplan expense


$        (424)


$        (173)


145.1



Other interest expense, net


$        (780)


$        (442)


76.5























Nine Months Ended September 30,



2015


2014


% Change


Local Currency
% Change

REVENUES:









New vehicle retail sales


$  492,424


$  397,263


24.0


35.1

Used vehicle retail sales


269,629


214,900


25.5


36.7

Used vehicle wholesale sales


78,692


62,304


26.3


37.8

Total used


348,321


277,204


25.7


37.0

Parts and service


76,983


62,843


22.5


33.4

Finance and insurance


17,411


13,916


25.1


36.3

Total


$  935,139


$  751,226


24.5


35.6










GROSS MARGIN %:









New vehicle retail sales


6.3


6.8





Used vehicle retail sales


5.3


5.9





Used vehicle wholesale sales


(0.5)






Total used


4.0


4.6





Parts and service


55.0


55.1





Finance and insurance


100.0


100.0





Total


11.2


11.7














GROSS PROFIT:









New vehicle retail sales


$    30,802


$    26,843


14.7


25.0

Used vehicle retail sales


14,164


12,684


11.7


21.7

Used vehicle wholesale sales


(385)


(4)


9,525.0


9,647.3

Total used


13,779


12,680


8.7


18.5

Parts and service


42,345


34,655


22.2


33.1

Finance and insurance


17,411


13,916


25.1


36.3

Total


$  104,337


$    88,094


18.4


29.0










UNITS SOLD:









Retail new vehicles sold


14,408


11,144


29.3



Retail used vehicles sold


10,863


8,108


34.0



Wholesale used vehicles sold


8,682


6,539


32.8



Total used


19,545


14,647


33.4












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$    34,177


$    35,648


(4.1)


4.5

Used vehicle retail


$    24,821


$    26,505


(6.4)


2.0










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$      2,138


$      2,409


(11.2)


(3.3)

Used vehicle retail sales


1,304


1,564


(16.6)


(9.1)

Used vehicle wholesale sales


(44)


(1)


4,300.0


7,241.4

Total used


705


866


(18.6)


(11.2)

Finance and insurance (per retail unit)


$         689


$         723


(4.7)


3.8










OTHER:(1)









SG&A expenses


$    81,320


$    67,063


21.3


32.1

SG&A as % revenues


8.7


8.9





SG&A as % gross profit


77.9


76.1





Operating margin %


2.1


2.5





Pretax margin %


1.7


2.1














INTEREST EXPENSE:









 Floorplan interest 


$     (1,689)


$     (1,188)


42.2



 Floorplan assistance 


584


504


15.9



 Net floorplan expense 


$     (1,105)


$        (684)


61.5



 Other interest expense, net 


$     (2,339)


$     (1,402)


66.8












(1)These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.

 

Group 1 Automotive, Inc.

Additional Information - Brazil

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended September 30,



2015


2014


% Change


Local Currency
% Change

REVENUES:









New vehicle retail sales


$    93,197


$  140,957


(33.9)


1.8

Used vehicle retail sales


20,890


29,850


(30.0)


8.1

Used vehicle wholesale sales


1,463


3,965


(63.1)


(44.5)

Total used


22,353


33,815


(33.9)


2.0

Parts and service


12,385


20,820


(40.5)


(8.1)

Finance and insurance


1,636


3,050


(46.4)


(15.7)

Total


$  129,571


$  198,642


(34.8)


0.5










GROSS MARGIN %:









New vehicle retail sales


6.4


6.3





Used vehicle retail sales


4.3


6.3





Used vehicle wholesale sales


6.4


7.8





Total used


4.4


6.5





Parts and service


41.8


41.9





Finance and insurance


100.0


100.0





Total


10.7


11.5














GROSS PROFIT:









New vehicle retail sales


$      6,004


$      8,950


(32.9)


2.7

Used vehicle retail sales


898


1,895


(52.6)


(26.8)

Used vehicle wholesale sales


93


309


(69.9)


(55.1)

Total used


991


2,204


(55.0)


(30.8)

Parts and service


5,173


8,729


(40.7)


(8.5)

Finance and insurance


1,636


3,050


(46.4)


(15.7)

Total


$    13,804


$    22,933


(39.8)


(7.2)










UNITS SOLD:









Retail new vehicles sold


3,582


4,072


(12.0)



Retail used vehicles sold


1,245


1,210


2.9



Wholesale used vehicles sold


402


583


(31.0)



Total used


1,647


1,793


(8.1)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$    26,018


$    34,616


(24.8)


15.7

Used vehicle retail


$    16,779


$    24,669


(32.0)


5.1










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$      1,676


$      2,198


(23.7)


16.7

Used vehicle retail sales


721


1,566


(54.0)


(28.9)

Used vehicle wholesale sales


231


530


(56.4)


(34.8)

Total used


602


1,229


(51.0)


(24.7)

Finance and insurance (per retail unit)


$         339


$         577


(41.2)


(7.8)

OTHER: (1)









SG&A expenses


$    12,117


$    19,920


(39.2)


(6.3)

SG&A as % revenues


9.4


10.0





SG&A as % gross profit


87.8


86.9





Operating margin %


1.0


1.2





Pretax margin %


0.6


0.2














INTEREST EXPENSE:









 Floorplan interest 


$          (96)


$     (1,490)


(93.6)



 Floorplan assistance 






 Net floorplan expense 


$          (96)


$     (1,490)


(93.6)



 Other interest expense, net 


$        (405)


$        (539)


(24.9)























Nine Months Ended September 30,



2015


2014


% Change


Local Currency
% Change

REVENUES:









New vehicle retail sales


$  281,999


$  409,580


(31.1)


(5.4)

Used vehicle retail sales


61,563


87,698


(29.8)


(3.8)

Used vehicle wholesale sales


6,462


13,795


(53.2)


(37.9)

Total used


68,025


101,493


(33.0)


(8.4)

Parts and service


39,970


57,658


(30.7)


(4.9)

Finance and insurance


5,256


8,165


(35.6)


(11.3)

Total


$  395,250


$  576,896


(31.5)


(6.0)










GROSS MARGIN %:









New vehicle retail sales


6.7


6.4





Used vehicle retail sales


4.4


6.2





Used vehicle wholesale sales


7.1


8.0





Total used


4.6


6.5





Parts and service


42.8


42.6





Finance and insurance


100.0


100.0





Total


11.3


11.3














GROSS PROFIT:









New vehicle retail sales


$    19,002


$    26,133


(27.3)


(0.3)

Used vehicle retail sales


2,693


5,481


(50.9)


(32.9)

Used vehicle wholesale sales


462


1,097


(57.9)


(44.6)

Total used


3,155


6,578


(52.0)


(34.8)

Parts and service


17,102


24,564


(30.4)


(4.7)

Finance and insurance


5,256


8,165


(35.6)


(11.3)

Total


$    44,515


$    65,440


(32.0)


(6.8)










UNITS SOLD:









Retail new vehicles sold


10,071


12,274


(17.9)



Retail used vehicles sold


3,403


3,899


(12.7)



Wholesale used vehicles sold


1,269


1,830


(30.7)



Total used


4,672


5,729


(18.4)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$    28,001


$    33,370


(16.1)


15.3

Used vehicle retail


$    18,091


$    22,492


(19.6)


10.2










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$      1,887


$      2,129


(11.4)


21.5

Used vehicle retail sales


791


1,406


(43.7)


(23.1)

Used vehicle wholesale sales


364


599


(39.2)


(20.0)

Total used


675


1,148


(41.2)


(20.1)

Finance and insurance (per retail unit)


$         390


$         505


(22.8)


6.5










OTHER: (1)









SG&A expenses


$    40,915


$    60,342


(32.2)


(7.4)

SG&A as % revenues


10.4


10.5





SG&A as % gross profit


91.9


92.2





Operating margin %


0.6


0.6





Pretax margin %



(0.4)














INTEREST EXPENSE:









 Floorplan interest 


$        (917)


$     (5,018)


(81.7)



 Floorplan assistance 






 Net floorplan expense 


$        (917)


$     (5,018)


(81.7)



 Other interest expense, net 


$     (1,188)


$        (597)


99.0












(1)These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended September 30,



2015


2014


% Change


Local Currency
% Change

REVENUES:









New vehicle retail sales


$   1,601,213


$   1,521,246


5.3


9.4

Used vehicle retail sales


687,637


615,924


11.6


14.6

Used vehicle wholesale sales


100,483


100,347


0.1


2.8

Total used


788,120


716,271


10.0


13.0

Parts and service


303,557


291,816


4.0


7.0

Finance and insurance


107,679


97,115


10.9


12.3

Total


$   2,800,569


$   2,626,448


6.6


10.2










GROSS MARGIN %:









New vehicle retail sales


5.0


5.3





Used vehicle retail sales


6.8


7.2





Used vehicle wholesale sales


(1.8)


(1.3)





Total used


5.7


6.0





Parts and service


54.8


52.9





Finance and insurance


100.0


100.0





Total


14.2


14.3














GROSS PROFIT:









New vehicle retail sales


$        79,492


$        80,230


(0.9)


4.0

Used vehicle retail sales


46,582


44,311


5.1


7.0

Used vehicle wholesale sales


(1,835)


(1,296)


41.6


38.8

Total used


44,747


43,015


4.0


6.1

Parts and service


166,464


154,349


7.8


10.4

Finance and insurance


107,679


97,115


10.9


12.3

Total


$      398,382


$      374,709


6.3


9.0










UNITS SOLD:









Retail new vehicles sold


47,126


44,494


5.9



Retail used vehicles sold


32,491


28,776


12.9



Wholesale used vehicles sold


14,926


14,750


1.2



Total used


47,417


43,526


8.9












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$        33,977


$        34,190


(0.6)


3.3

Used vehicle retail


$        21,164


$        21,404


(1.1)


1.5










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$          1,687


$          1,803


(6.4)


(1.8)

Used vehicle retail sales


1,434


1,540


(6.9)


(5.2)

Used vehicle wholesale sales


(123)


(88)


39.8


37.1

Total used


944


988


(4.5)


(2.6)

Finance and insurance (per retail unit)


$          1,352


$          1,325


2.0


3.4

OTHER: (1)









SG&A expenses


$      289,012


$      277,044


4.3


7.5

SG&A as % revenues


10.3


10.5





SG&A as % gross profit


72.5


73.9





Operating margin %


3.5


3.3





Pretax margin %


2.6


2.4














INTEREST EXPENSE:









 Floorplan interest 


$        (9,685)


$      (10,452)


(7.3)



 Floorplan assistance 


13,545


12,122


11.7



 Net floorplan expense 


$         3,860


$         1,670


131.1



 Other interest expense, net 


$      (13,922)


$      (13,246)


5.1























Nine Months Ended September 30,



2015


2014


% Change


Local Currency
% Change

REVENUES:









New vehicle retail sales


$   4,468,200


$   4,256,146


5.0


8.5

Used vehicle retail sales


1,993,124


1,743,071


14.3


17.0

Used vehicle wholesale sales


302,186


284,491


6.2


9.5

Total used


2,295,310


2,027,562


13.2


16.0

Parts and service


888,939


844,340


5.3


7.9

Finance and insurance


307,454


270,901


13.5


14.8

Total


$   7,959,903


$   7,398,949


7.6


10.7










GROSS MARGIN %:









New vehicle retail sales


5.0


5.4





Used vehicle retail sales


7.0


7.6





Used vehicle wholesale sales



1.1





Total used


6.0


6.7





Parts and service


54.3


53.0





Finance and insurance


100.0


100.0





Total


14.5


14.6














GROSS PROFIT:









New vehicle retail sales


$      225,353


$      227,982


(1.2)


3.1

Used vehicle retail sales


138,763


132,778


4.5


6.2

Used vehicle wholesale sales


(90)


3,057


(102.9)


(99.2)

Total used


138,673


135,835


2.1


3.8

Parts and service


482,359


447,261


7.8


10.1

Finance and insurance


307,454


270,901


13.5


14.8

Total


$   1,153,839


$   1,081,979


6.6


9.0










UNITS SOLD:









Retail new vehicles sold


131,130


124,699


5.2



Retail used vehicles sold


93,913


82,374


14.0



Wholesale used vehicles sold


43,493


40,764


6.7



Total used


137,406


123,138


11.6












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$        34,075


$        34,131


(0.2)


3.2

Used vehicle retail


$        21,223


$        21,160


0.3


2.7










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$          1,719


$          1,828


(6.0)


(1.9)

Used vehicle retail sales


1,478


1,612


(8.3)


(6.8)

Used vehicle wholesale sales


(2)


75


(102.7)


(99.2)

Total used


1,009


1,103


(8.5)


(6.9)

Finance and insurance (per retail unit)


$          1,366


$          1,308


4.4


5.6










OTHER: (1)









SG&A expenses


$      839,944


$      804,547


4.4


7.2

SG&A as % revenues


10.6


10.9





SG&A as % gross profit


72.8


74.4





Operating margin %


3.5


3.3





Pretax margin %


2.6


2.4














INTEREST EXPENSE:









 Floorplan interest 


$       (29,046)


$       (31,695)


(8.4)



 Floorplan assistance 


37,087


33,473


10.8



 Net floorplan expense 


$           8,041


$           1,778


352.2



 Other interest expense, net 


$       (42,061)


$       (36,326)


15.8












(1)These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.

 

Group 1 Automotive, Inc.

Additional Information - Same Store U.S. (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)










Three Months Ended September 30,



2015


2014


% Change

REVENUES:







New vehicle retail sales


$   1,272,198


$   1,199,736


6.0

Used vehicle retail sales


552,722


497,814


11.0

Used vehicle wholesale sales


66,731


72,359


(7.8)

Total used


619,453


570,173


8.6

Parts and service


255,710


239,943


6.6

Finance and insurance


96,952


87,504


10.8

Total


$   2,244,313


$   2,097,356


7.0








GROSS MARGIN %:







New vehicle retail sales


4.7


5.0



Used vehicle retail sales


7.2


7.5



Used vehicle wholesale sales


(2.6)


(1.8)



Total used


6.1


6.3



Parts and service


55.1


53.7



Finance and insurance


100.0


100.0



Total


14.9


14.9










GROSS PROFIT:







New vehicle retail sales


$        59,341


$        59,963


(1.0)

Used vehicle retail sales


39,733


37,492


6.0

Used vehicle wholesale sales


(1,745)


(1,305)


33.7

Total used


37,988


36,187


5.0

Parts and service


141,020


128,879


9.4

Finance and insurance


96,952


87,504


10.8

Total


$      335,301


$      312,533


7.3








UNITS SOLD:







Retail new vehicles sold


37,132


35,567


4.4

Retail used vehicles sold


26,756


24,261


10.3

Wholesale used vehicles sold


11,224


11,645


(3.6)

Total used


37,980


35,906


5.8








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$        34,261


$        33,732


1.6

Used vehicle retail


$        20,658


$        20,519


0.7








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$          1,598


$          1,686


(5.2)

Used vehicle retail sales


1,485


1,545


(3.9)

Used vehicle wholesale sales


(155)


(112)


38.4

Total used


1,000


1,008


(0.8)

Finance and insurance (per retail unit)


$          1,518


$          1,463


3.8








OTHER:(2)







SG&A expenses


$      239,585


$      224,114


6.9

SG&A as % revenues


10.7


10.7



SG&A as % gross profit


71.5


71.7



Operating margin %


3.8


3.8












Nine Months Ended September 30,



2015


2014


% Change

REVENUES:







New vehicle retail sales


$   3,477,534


$   3,292,040


5.6

Used vehicle retail sales


1,549,938


1,384,939


11.9

Used vehicle wholesale sales


197,083


197,854


(0.4)

Total used


1,747,021


1,582,793


10.4

Parts and service


735,509


689,284


6.7

Finance and insurance


269,132


243,002


10.8

Total


$   6,229,196


$   5,807,119


7.3








GROSS MARGIN %:







New vehicle retail sales


4.7


5.1



Used vehicle retail sales


7.4


8.1



Used vehicle wholesale sales


0.1


1.1



Total used


6.5


7.2



Parts and service


54.5


53.6



Finance and insurance


100.0


100.0



Total


15.2


15.4










GROSS PROFIT:







New vehicle retail sales


$      161,991


$      167,156


(3.1)

Used vehicle retail sales


114,268


111,843


2.2

Used vehicle wholesale sales


142


2,101


(93.2)

Total used


114,410


113,944


0.4

Parts and service


400,502


369,343


8.4

Finance and insurance


269,132


243,002


10.8

Total


$      946,035


$      893,445


5.9








UNITS SOLD:







Retail new vehicles sold


101,468


97,436


4.1

Retail used vehicles sold


75,199


68,295


10.1

Wholesale used vehicles sold


31,532


31,229


1.0

Total used


106,731


99,524


7.2








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$        34,272


$        33,787


1.4

Used vehicle retail


$        20,611


$        20,279


1.6








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$          1,596


$          1,716


(7.0)

Used vehicle retail sales


1,520


1,638


(7.2)

Used vehicle wholesale sales


5


67


(92.5)

Total used


1,072


1,145


(6.4)

Finance and insurance (per retail unit)


$          1,523


$          1,466


3.9








OTHER: (2)







SG&A expenses


$      675,873


$      640,801


5.5

SG&A as % revenues


10.9


11.0



SG&A as % gross profit


71.4


71.7



Operating margin %


3.9


3.9










(1) Same store amounts include the results for the identical months in each period presented in the comparison, commencing with the first full month we owned the dealership and, in the case of dispositions, ending with the last full month we owned it. Same store results also include the activities of our corporate office.


(2)These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.

 

Group 1 Automotive, Inc.



Additional Information - Same Store U.K. (1)



(Unaudited)



(Dollars in thousands, except per unit amounts)














Three Months Ended September 30,



2015


2014


% Change


Local Currency
% Change

REVENUES:









New vehicle retail sales


$  151,967


$  134,858


12.7


21.0

Used vehicle retail sales


77,395


70,164


10.3


18.8

Used vehicle wholesale sales


19,303


21,110


(8.6)


(1.4)

Total used


96,698


91,274


5.9


14.1

Parts and service


20,728


21,272


(2.6)


5.0

Finance and insurance


5,289


4,797


10.3


18.6

Total


$  274,682


$  252,201


8.9


17.1










GROSS MARGIN %:









New vehicle retail sales


6.3


6.9





Used vehicle retail sales


5.2


5.9





Used vehicle wholesale sales


(0.2)


(0.8)





Total used


4.1


4.4





Parts and service


57.4


55.2





Finance and insurance


100.0


100.0





Total


11.2


11.8














GROSS PROFIT:









New vehicle retail sales


$      9,572


$      9,303


2.9


9.9

Used vehicle retail sales


4,048


4,166


(2.8)


4.5

Used vehicle wholesale sales


(48)


(175)


(72.6)


(68.8)

Total used


4,000


3,991


0.2


7.7

Parts and service


11,898


11,748


1.3


9.1

Finance and insurance


5,289


4,797


10.3


18.6

Total


$    30,759


$    29,839


3.1


10.7










UNITS SOLD:









Retail new vehicles sold


4,494


3,773


19.1



Retail used vehicles sold


3,153


2,649


19.0



Wholesale used vehicles sold


2,328


2,183


6.6



Total used


5,481


4,832


13.4












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$    33,816


$    35,743


(5.4)


1.5

Used vehicle retail


$    24,546


$    26,487


(7.3)


(0.2)










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$      2,130


$      2,466


(13.6)


(7.7)

Used vehicle retail sales


1,284


1,573


(18.4)


(12.2)

Used vehicle wholesale sales


(21)


(80)


(73.8)


(70.7)

Total used


730


826


(11.6)


(5.1)

Finance and insurance (per retail unit)


$         692


$         747


(7.4)


(0.4)

OTHER:  (2)









SG&A expenses


$    23,100


$    22,278


3.7


11.7

SG&A as % revenues


8.4


8.8





SG&A as % gross profit


75.1


74.7





Operating margin %


2.5


2.7
















Nine Months Ended September 30,



2015


2014


% Change


Local Currency
% Change

REVENUES:









New vehicle retail sales


$  410,135


$  397,264


3.2


12.5

Used vehicle retail sales


225,908


214,900


5.1


14.5

Used vehicle wholesale sales


60,167


62,304


(3.4)


5.3

Total used


286,075


277,204


3.2


12.4

Parts and service


60,632


62,838


(3.5)


5.1

Finance and insurance


15,043


13,915


8.1


17.8

Total


$  771,885


$  751,221


2.8


12.0










GROSS MARGIN %:









New vehicle retail sales


6.3


6.8





Used vehicle retail sales


5.3


5.9





Used vehicle wholesale sales


(0.3)






Total used


4.1


4.6





Parts and service


56.9


55.1





Finance and insurance


100.0


100.0





Total


11.3


11.7














GROSS PROFIT:









New vehicle retail sales


$    25,708


$    26,844


(4.2)


4.3

Used vehicle retail sales


11,868


12,684


(6.4)


2.0

Used vehicle wholesale sales


(169)


(5)


3,280.0


4,130.0

Total used


11,699


12,679


(7.7)


0.6

Parts and service


34,480


34,651


(0.5)


8.4

Finance and insurance


15,043


13,915


8.1


17.8

Total


$    86,930


$    88,089


(1.3)


7.5










UNITS SOLD:









Retail new vehicles sold


12,338


11,144


10.7



Retail used vehicles sold


9,302


8,108


14.7



Wholesale used vehicles sold


7,146


6,539


9.3



Total used


16,448


14,647


12.3












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$    33,242


$    35,648


(6.8)


1.6

Used vehicle retail


$    24,286


$    26,505


(8.4)


(0.2)










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$      2,084


$      2,409


(13.5)


(5.8)

Used vehicle retail sales


1,276


1,564


(18.4)


(11.1)

Used vehicle wholesale sales


(24)


(1)


2,300.0


3,770.7

Total used


711


866


(17.9)


(10.4)

Finance and insurance (per retail unit)


$         695


$         723


(3.9)


4.8










OTHER: (2)









SG&A expenses


$    66,414


$    67,064


(1.0)


7.9

SG&A as % revenues


8.6


8.9





SG&A as % gross profit


76.4


76.1





Operating margin %


2.4


2.5














(1) Same store amounts include the results for the identical months in each period presented in the comparison, commencing with the first full month we owned the dealership and, in the case of dispositions, ending with the last full month we owned it. Same store results also include the activities of our corporate office.


(2)These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.

 

Group 1 Automotive, Inc.



Additional Information - Same Store Brazil (1)



(Unaudited)



(Dollars in thousands, except per unit amounts)














Three Months Ended September 30,



2015


2014


% Change


Local Currency
% Change

REVENUES:









New vehicle retail sales


$    90,002


$  129,007


(30.2)


7.4

Used vehicle retail sales


20,342


27,499


(26.0)


14.4

Used vehicle wholesale sales


1,463


3,159


(53.7)


(30.4)

Total used


21,805


30,658


(28.9)


9.7

Parts and service


12,193


18,163


(32.9)


3.7

Finance and insurance


1,594


2,857


(44.2)


(12.4)

Total


$  125,594


$  180,685


(30.5)


7.1










GROSS MARGIN %:









New vehicle retail sales


6.4


6.4





Used vehicle retail sales


4.4


6.3





Used vehicle wholesale sales


6.4


7.3





Total used


4.5


6.4





Parts and service


41.7


43.1





Finance and insurance


100.0


100.0





Total


10.7


11.6














GROSS PROFIT:









New vehicle retail sales


$      5,728


$      8,257


(30.6)


6.2

Used vehicle retail sales


889


1,721


(48.3)


(20.0)

Used vehicle wholesale sales


93


231


(59.7)


(39.8)

Total used


982


1,952


(49.7)


(22.4)

Parts and service


5,079


7,825


(35.1)


0.2

Finance and insurance


1,594


2,857


(44.2)


(12.4)

Total


$    13,383


$    20,891


(35.9)


(1.3)










UNITS SOLD:









Retail new vehicles sold


3,511


3,465


1.3



Retail used vehicles sold


1,228


1,065


15.3



Wholesale used vehicles sold


401


454


(11.7)



Total used


1,629


1,519


7.2












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$    25,634


$    37,231


(31.1)


6.0

Used vehicle retail


$    16,565


$    25,821


(35.8)


(0.8)










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$      1,631


$      2,383


(31.6)


4.8

Used vehicle retail sales


724


1,616


(55.2)


(30.6)

Used vehicle wholesale sales


232


509


(54.4)


(31.9)

Total used


603


1,285


(53.1)


(27.6)

Finance and insurance (per retail unit)


$         336


$         631


(46.8)


(16.2)










OTHER:(2)









SG&A expenses


$    11,911


$    17,277


(31.1)


6.3

SG&A as % revenues


9.5


9.6





SG&A as % gross profit


89.0


82.7





Operating margin %


0.9


1.8
















Nine Months Ended September 30,



2015


2014


% Change


Local Currency
% Change

REVENUES:









New vehicle retail sales


$  271,960


$  380,047


(28.4)


(1.7)

Used vehicle retail sales


60,876


82,247


(26.0)


1.4

Used vehicle wholesale sales


6,437


11,142


(42.2)


(23.4)

Total used


67,313


93,389


(27.9)


(1.6)

Parts and service


39,527


50,825


(22.2)


6.7

Finance and insurance


5,172


7,425


(30.3)


(4.1)

Total


$  383,972


$  531,686


(27.8)


(0.9)










GROSS MARGIN %:









New vehicle retail sales


6.7


6.2





Used vehicle retail sales


4.4


6.2





Used vehicle wholesale sales


7.2


7.6





Total used


4.7


6.4





Parts and service


42.8


43.9





Finance and insurance


100.0


100.0





Total


11.3


11.2














GROSS PROFIT:









New vehicle retail sales


$    18,242


$    23,647


(22.9)


5.7

Used vehicle retail sales


2,691


5,088


(47.1)


(27.8)

Used vehicle wholesale sales


463


843


(45.1)


(27.8)

Total used


3,154


5,931


(46.8)


(27.8)

Parts and service


16,908


22,292


(24.2)


3.7

Finance and insurance


5,172


7,425


(30.3)


(4.1)

Total


$    43,476


$    59,295


(26.7)


0.4










UNITS SOLD:









Retail new vehicles sold


9,874


10,746


(8.1)



Retail used vehicles sold


3,379


3,523


(4.1)



Wholesale used vehicles sold


1,265


1,443


(12.3)



Total used


4,644


4,966


(6.5)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$    27,543


$    35,366


(22.1)


7.0

Used vehicle retail


$    18,016


$    23,346


(22.8)


5.7










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$      1,847


$      2,201


(16.1)


15.1

Used vehicle retail sales


796


1,444


(44.9)


(24.7)

Used vehicle wholesale sales


366


584


(37.3)


(17.6)

Total used


679


1,194


(43.1)


(22.8)

Finance and insurance (per retail unit)


$         390


$         520


(25.0)


3.2










OTHER: (2)









SG&A expenses


$    39,429


$    52,736


(25.2)


2.3

SG&A as % revenues


10.3


9.9





SG&A as % gross profit


90.7


88.9





Operating margin %


0.7


1.0














(1) Same store amounts include the results for the identical months in each period presented in the comparison, commencing with the first full month we owned the dealership and, in the case of dispositions, ending with the last full month we owned it. Same store results also include the activities of our corporate office.


(2)These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.

 

Group 1 Automotive, Inc.



Additional Information - Same Store Consolidated (1)



(Unaudited)



(Dollars in thousands, except per unit amounts)














Three Months Ended September 30,



2015


2014


% Change


Local Currency
% Change

REVENUES:









New vehicle retail sales


$   1,514,167


$   1,463,601


3.5


7.5

Used vehicle retail sales


650,459


595,477


9.2


12.1

Used vehicle wholesale sales


87,497


96,628


(9.4)


(7.1)

Total used


737,956


692,105


6.6


9.4

Parts and service


288,631


279,378


3.3


6.3

Finance and insurance


103,835


95,158


9.1


10.5

Total


$   2,644,589


$   2,530,242


4.5


8.0










GROSS MARGIN %:









New vehicle retail sales


4.9


5.3





Used vehicle retail sales


6.9


7.3





Used vehicle wholesale sales


(1.9)


(1.3)





Total used


5.8


6.1





Parts and service


54.7


53.1





Finance and insurance


100.0


100.0





Total


14.3


14.4














GROSS PROFIT:









New vehicle retail sales


$        74,641


$        77,523


(3.7)


1.0

Used vehicle retail sales


44,670


43,379


3.0


4.8

Used vehicle wholesale sales


(1,700)


(1,249)


36.1


32.9

Total used


42,970


42,130


2.0


4.0

Parts and service


157,997


148,452


6.4


8.9

Finance and insurance


103,835


95,158


9.1


10.5

Total


$      379,443


$      363,263


4.5


7.1










UNITS SOLD:









Retail new vehicles sold


45,137


42,805


5.4



Retail used vehicles sold


31,137


27,975


11.3



Wholesale used vehicles sold


13,953


14,282


(2.3)



Total used


45,090


42,257


6.7












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$        33,546


$        34,192


(1.9)


2.0

Used vehicle retail


$        20,890


$        21,286


(1.9)


0.7










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$          1,654


$          1,811


(8.7)


(4.2)

Used vehicle retail sales


1,435


1,551


(7.5)


(5.8)

Used vehicle wholesale sales


(122)


(87)


40.2


36.1

Total used


953


997


(4.4)


(2.6)

Finance and insurance (per retail unit)


$          1,361


$          1,344


1.3


2.5










OTHER:(2)









SG&A expenses


$      274,596


$      263,669


4.1


7.3

SG&A as % revenues


10.4


10.4





SG&A as % gross profit


72.4


72.6





Operating margin %


3.5


3.5
















Nine Months Ended September 30,



2015


2014


% Change


Local Currency
% Change

REVENUES:









New vehicle retail sales


$   4,159,629


$   4,069,351


2.2


5.6

Used vehicle retail sales


1,836,722


1,682,086


9.2


11.7

Used vehicle wholesale sales


263,687


271,300


(2.8)


-

Total used


2,100,409


1,953,386


7.5


10.1

Parts and service


835,668


802,947


4.1


6.6

Finance and insurance


289,347


264,342


9.5


10.7

Total


$   7,385,053


$   7,090,026


4.2


7.1










GROSS MARGIN %:









New vehicle retail sales


5.0


5.3





Used vehicle retail sales


7.0


7.7





Used vehicle wholesale sales


0.2


1.1





Total used


6.2


6.8





Parts and service


54.1


53.1





Finance and insurance


100.0


100.0





Total


14.6


14.7














GROSS PROFIT:









New vehicle retail sales


$      205,941


$      217,647


(5.4)


(1.2)

Used vehicle retail sales


128,827


129,615


(0.6)


1.0

Used vehicle wholesale sales


436


2,939


(85.2)


(80.6)

Total used


129,263


132,554


(2.5)


(0.8)

Parts and service


451,890


426,286


6.0


8.2

Finance and insurance


289,347


264,342


9.5


10.7

Total


$   1,076,441


$   1,040,829


3.4


5.7










UNITS SOLD:









Retail new vehicles sold


123,680


119,326


3.6



Retail used vehicles sold


87,880


79,926


10.0



Wholesale used vehicles sold


39,943


39,211


1.9



Total used


127,823


119,137


7.3












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$        33,632


$        34,103


(1.4)


1.9

Used vehicle retail


$        20,900


$        21,046


(0.7)


1.6










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$          1,665


$          1,824


(8.7)


(4.7)

Used vehicle retail sales


1,466


1,622


(9.6)


(8.2)

Used vehicle wholesale sales


11


75


(85.3)


(81.0)

Total used


1,011


1,113


(9.2)


(7.6)

Finance and insurance (per retail unit)


$          1,368


$          1,327


3.1


4.3










OTHER: (2)









SG&A expenses


$      781,716


$      760,602


2.8


5.5

SG&A as % revenues


10.6


10.7





SG&A as % gross profit


72.6


73.1





Operating margin %


3.5


3.5














(1) Same store amounts include the results for the identical months in each period presented in the comparison, commencing with the first full month we owned the dealership and, in the case of dispositions, ending with the last full month we owned it. Same store results also include the activities of our corporate office.


(2)These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - U.S.

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended September 30,



2015


2014


% Change

SG&A RECONCILIATION:







As reported

$  248,771


$  221,645


12.2


  Pre-tax adjustments:







 Catastrophic events 


(1,099)




 Gain (loss) on real estate and dealership transactions 


14,303




Adjusted SG&A (1)

$  248,771


$  234,849


5.9








SG&A AS % REVENUES:







Unadjusted

10.6


10.2




Adjusted (1)

10.6


10.8



SG&A AS % GROSS PROFIT:







Unadjusted

71.4


68.8




Adjusted (1)

71.4


72.9



OPERATING MARGIN %







Unadjusted

3.8


4.0




Adjusted (1), (2)

3.8


3.6



PRETAX MARGIN %:







Unadjusted

2.9


2.0




Adjusted (1), (3)

2.9


2.6










SAME STORE SG&A RECONCILIATION:














As reported

$  239,585


$  225,236


6.4


  Pre-tax adjustments:







 Catastrophic events 


(1,099)




 Gain (loss) on real estate and dealership transactions 


(23)




Adjusted Same Store SG&A (1)

$  239,585


$  224,114


6.9








SAME STORE SG&A AS % REVENUES:







Unadjusted

10.7


10.7




Adjusted (1)

10.7


10.7



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

71.5


72.1




Adjusted (1)

71.5


71.7



SAME STORE OPERATING MARGIN %







Unadjusted

3.8


3.7




Adjusted (1), (4)

3.8


3.8












 Nine Months Ended September 30, 



2015


2014


 % Change 

SG&A RECONCILIATION:







As reported

$  718,607


$  665,547


8.0


  Pre-tax adjustments:







 Catastrophic events 

(951)


(2,775)




 Gain (loss) on real estate and dealership transactions 

1,052


14,812




 Legal settlements 

(1,000)


(442)




Adjusted SG&A (1)

$  717,708


$  677,142


6.0








SG&A AS % REVENUES:







Unadjusted

10.8


11.0




Adjusted (1)

10.8


11.2



SG&A AS % OF GROSS PROFIT:







Unadjusted

71.5


71.7




Adjusted (1)

71.4


72.9



OPERATING MARGIN %:







 Unadjusted 

3.8


3.8




Adjusted (1), (2)

3.9


3.7



PRETAX MARGIN %:







Unadjusted

2.9


2.0




Adjusted (1), (3)

2.9


2.7










SAME STORE SG&A RECONCILIATION:














As reported

$  678,188


$  644,041


5.3


  Pre-tax adjustments:







 Catastrophic events 

(951)


(2,775)




 Gain (loss) on real estate and dealership transactions 

(364)


(23)




 Legal settlements 

(1,000)


(442)




Adjusted Same Store SG&A (1)

$  675,873


$  640,801


5.5








SAME STORE SG&A AS % REVENUES:







Unadjusted

10.9


11.1




Adjusted (1)

10.9


11.0



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

71.7


72.1




Adjusted (1)

71.4


71.7



SAME STORE OPERATING MARGIN %







Unadjusted

3.8


3.8




Adjusted (1), (4)

3.9


3.9










(1)

We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items.  These adjusted measures are not measures of financial performance under GAAP.  As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures.  We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations. 



(2)

Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $288 and $786 for the three and nine months ended September 30, 2015, respectively, and $4,252 and $5,973 for the three and nine months ended September 30, 2014, respectively.



(3)

Excludes the impact of SG&A reconciling items above, loss on redemption of long-term debt of $22,790 and $46,403 for the three and nine months ended September 30, 2014, respectively, as well as non-cash asset impairment charges of $288 and $786 for the three and nine months ended September 30, 2015 and $4,252 and $5,973 for the three and nine months ended September 30, 2014, respectively.



(4)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $288 and $786 for the three and nine months ended September 30, 2015, respectively, and $293 and $2,014 for the three and nine months ended September 30, 2014, respectively.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - U.K.

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended September 30,



2015


2014


% Change

OPERATING MARGIN %







Unadjusted

2.1


2.7




Adjusted (1), (3)

2.2


2.7



PRETAX MARGIN %:







Unadjusted

1.6


2.3




Adjusted (1), (3)

1.7


2.3










SAME STORE OPERATING MARGIN %







Unadjusted

2.4


2.7




Adjusted (1), (3)

2.5


2.7












 Nine Months Ended September 30, 



2015


2014


 % Change 

SG&A RECONCILIATION:














As reported

$  81,528


$  67,063


21.6


  Pre-tax adjustments:







 Severance costs 

(208)





Adjusted SG&A (1)

$  81,320


$  67,063


21.3








SG&A AS % REVENUES:







Unadjusted

8.7


8.9




Adjusted (1)

8.7


8.9



SG&A AS % OF GROSS PROFIT:







Unadjusted

78.1


76.1




Adjusted (1)

77.9


76.1



OPERATING MARGIN %:







Unadjusted

2.1


2.5




Adjusted (1), (2)

2.1


2.5



PRETAX MARGIN %:







Unadjusted

1.6


2.1




Adjusted (1), (2)

1.7


2.1










SAME STORE OPERATING MARGIN %







Unadjusted

2.3


2.5




Adjusted (1), (3)

2.4


2.5










(1)

We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items.  These adjusted measures are not measures of financial performance under GAAP.  As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures.  We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations. 



(2)

Excludes the impact of SG&A reconciling item above, as well as non-cash asset impairment charges of $333 for the three and nine months ended September 30, 2015.



(3)

Excludes the impact of non-cash asset impairment charges of $333 for the three and nine months ended September 30, 2015.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Brazil

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended September 30,



2015


2014


% Change

SG&A RECONCILIATION:







As reported

$  12,117


$  20,313


(40.3)


  Pre-tax adjustments:







 Severance costs 


(393)




Adjusted SG&A (1)

$  12,117


$  19,920


(39.2)








SG&A AS % REVENUES:







Unadjusted

9.4


10.2




Adjusted (1)

9.4


10.0



SG&A AS % GROSS PROFIT:







Unadjusted

87.8


88.6




Adjusted (1)

87.8


86.9



OPERATING MARGIN %







Unadjusted

0.8


(1.6)




Adjusted (1), (2)

1.0


1.2



PRETAX MARGIN %:







Unadjusted

0.4


(2.6)




Adjusted (1), (2)

0.6


0.2










SAME STORE SG&A RECONCILIATION:














As reported

$  11,911


$  17,566


(32.2)


  Pre-tax adjustments:







 Severance costs 


(289)




Adjusted Same Store SG&A (1)

$  11,911


$  17,277


(31.1)








SAME STORE SG&A AS % REVENUES:







Unadjusted

9.5


9.7




Adjusted (1)

9.5


9.6



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

89.0


84.1




Adjusted (1)

89.0


82.7



SAME STORE OPERATING MARGIN %







Unadjusted

0.7


1.6




Adjusted (1), (3)

0.9


1.8












 Nine Months Ended September 30, 



2015


2014


 % Change 

SG&A RECONCILIATION:







As reported

$  40,915


$  61,151


(33.1)


  Pre-tax adjustments:







 Severance costs 


(393)




 Foreign transaction tax 


(416)




Adjusted SG&A (1)

$  40,915


$  60,342


(32.2)








SG&A AS % REVENUES:







Unadjusted

10.4


10.6




Adjusted (1)

10.4


10.5



SG&A AS % OF GROSS PROFIT:







Unadjusted

91.9


93.4




Adjusted (1)

91.9


92.2



OPERATING MARGIN %:







Unadjusted

0.3


(0.4)




Adjusted (1), (2)

0.6


0.6



PRETAX MARGIN %:







Unadjusted

(0.2)


(1.4)




Adjusted (1), (2)


(0.4)










SAME STORE SG&A RECONCILIATION:














As reported

$  39,429


$  53,441


(26.2)


  Pre-tax adjustments:







 Severance costs 


(289)




 Foreign transaction tax 


(416)




Adjusted Same Store SG&A (1)

$  39,429


$  52,736


(25.2)








SAME STORE SG&A AS % REVENUES:







Unadjusted

10.3


10.1




Adjusted (1)

10.3


9.9



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

90.7


90.1




Adjusted (1)

90.7


88.9



SAME STORE OPERATING MARGIN %







Unadjusted

0.6


0.8




Adjusted (1), (3)

0.7


1.0










(1)

We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items.  These adjusted measures are not measures of financial performance under GAAP.  As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures.  We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations. 



(2)

Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $298 and $839 for the three and nine months ended September 30, 2015, respectively, and $5,121 for the three and nine months ended September 30, 2014.



(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $298 for the three and nine months ended September 30, 2015.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - CONSOLIDATED

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended September 30,



2015


2014


% Change








NET INCOME RECONCILIATION:







As reported

$    45,261


$    26,162


73.0


  Pre-tax adjustments:







Catastrophic events (5)


671




(Gain) loss on real estate and dealership transactions (6)


(8,572)




Severance costs (7)


388




Non-cash asset impairment (10)

776


6,559




Loss on extinguishment of long-term debt (11)


17,934




Non-deductible goodwill


(3,358)




Adjusted net income (1)

$    46,037


$    39,784


15.7








ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED







COMMON SHARES RECONCILIATION:







Adjusted net income (1)

$    46,037


$    39,784


15.7


Less: Adjusted earnings allocated to participating securities

1,759


1,520


15.7


Adjusted net income available to diluted common shares (1)

$    44,278


$    38,264


15.7








 DILUTED INCOME PER COMMON SHARE RECONCILIATION: 






As reported

$        1.88


$        1.03


82.5


  Pre-tax adjustments:







Catastrophic events 


0.03




Gain (loss) on real estate and dealership transactions 


(0.34)




Severance costs 


0.01




Non-cash asset impairment 

0.03


0.26




Loss on extinguishment of long-term debt 


0.71




Non-deductible goodwill


(0.13)




Adjusted diluted income per share (1)

$        1.91


$        1.57


21.7








SG&A RECONCILIATION:







As reported

$  289,012


$  264,233


9.4


  Pre-tax adjustments:







Catastrophic events 


(1,099)




Gain (loss) on real estate and dealership transactions 


14,303




Severance costs 


(393)




Adjusted SG&A (1)

$  289,012


$  277,044


4.3








SG&A AS % REVENUES:







Unadjusted

10.3


10.1




Adjusted (1)

10.3


10.5



SG&A AS % GROSS PROFIT:







Unadjusted

72.5


70.5




Adjusted (1)

72.5


73.9



OPERATING MARGIN %







Unadjusted

3.5


3.4




Adjusted (1), (2)

3.5


3.3



PRETAX MARGIN %:







Unadjusted

2.6


1.7




Adjusted (1), (3)

2.6


2.4










SAME STORE SG&A RECONCILIATION:







As reported

$  274,596


$  265,080


3.6


  Pre-tax adjustments:







Catastrophic events 


(1,099)




Gain (loss) on real estate and dealership transactions 


(23)




Severance costs 


(289)




Adjusted Same Store SG&A (1)

$  274,596


$  263,669


4.1








SAME STORE SG&A AS % REVENUES:







Unadjusted

10.4


10.5




Adjusted (1)

10.4


10.4



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

72.4


73.0




Adjusted (1)

72.4


72.6



SAME STORE OPERATING MARGIN %







Unadjusted

3.5


3.5




Adjusted (1), (4)

3.5


3.5












 Nine Months Ended September 30, 



2015


2014


 % Change 

NET INCOME RECONCILIATION:







As reported

$  127,385


$    74,327


71.4


  Pre-tax adjustments:







Catastrophic events (5)

593


1,710




(Gain) loss on real estate and dealership transactions (6)

(601)


(8,887)




Severance costs (7)

167


388




Legal settlements (8)

610


274




Foreign transaction tax (9)


274




Non-cash asset impairment (10)

1,624


7,626




Loss on extinguishment of long-term debt (11)


38,711




Non-deductible goodwill


(3,358)




Adjusted net income (1)

$  129,778


$  111,065


16.8








ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED







COMMON SHARES RECONCILIATION:







Adjusted net income (1)

$  129,778


$  111,065


16.8


Less: Adjusted earnings allocated to participating securities

4,997


4,126


21.1


Adjusted net income available to diluted common shares (1)

$  124,781


$  106,939


16.7








 DILUTED INCOME PER COMMON SHARE RECONCILIATION: 






As reported

$        5.26


$        2.82


86.5


  Pre-tax adjustments:







 Catastrophic events  

0.02


0.07




 Gain (loss) on real estate and dealership transactions  

(0.02)


(0.33)




 Severance costs  

0.01


0.01




 Legal settlements  

0.02


0.01




 Foreign transaction tax  


0.01




 Non-cash asset impairment  

0.07


0.29




 Loss on extinguishment of long-term debt  


1.47




 Non-deductible goodwill 


(0.13)




Adjusted diluted income per share (1)

$        5.36


$        4.22


27.0















SG&A RECONCILIATION:







As reported

$  841,050


$  793,761


6.0


  Pre-tax adjustments:







 Catastrophic events  

(951)


(2,775)




 Gain (loss) on real estate and dealership transactions  

1,053


14,812




 Severance costs  

(208)


(393)




 Legal settlements  

(1,000)


(442)




 Foreign transaction tax  


(416)




Adjusted SG&A (1)

$  839,944


$  804,547


4.4








SG&A AS % REVENUES:







Unadjusted

10.6


10.7




Adjusted (1)

10.6


10.9



SG&A AS % OF GROSS PROFIT:







Unadjusted

72.9


73.4




Adjusted (1)

72.8


74.4



OPERATING MARGIN %:







Unadjusted

3.5


3.3




Adjusted (1), (2)

3.5


3.3



PRETAX MARGIN %:







Unadjusted

2.6


1.8




Adjusted (1), (3)

2.6


2.4










SAME STORE SG&A RECONCILIATION:







As reported

$  784,031


$  764,546


2.5


  Pre-tax adjustments:







 Catastrophic events  

(951)


(2,774)




 Gain (loss) on real estate and dealership transactions  

(364)


(23)




 Severance costs  


(289)




 Legal settlements  

(1,000)


(442)




 Foreign transaction tax  


(416)




Adjusted Same Store SG&A (1)

$  781,716


$  760,602


2.8








SAME STORE SG&A AS % REVENUES:







Unadjusted

10.6


10.8




Adjusted (1)

10.6


10.7



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

72.8


73.5




Adjusted (1)

72.6


73.1



SAME STORE OPERATING MARGIN %







Unadjusted

3.5


3.4




Adjusted (1), (4)

3.5


3.5










(1)

We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items.  These adjusted measures are not measures of financial performance under GAAP.  As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures.  We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations. 



(2)

Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges for all periods.



(3)

Excludes the impact of SG&A reconciling items above, non-cash asset impairment charges for all periods, as well as loss on redemption of long-term debt of $22,790 and $46,403 for the three and nine months ended September 30, 2014, respectively.



(4)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $916 and $1,418 for the three and nine months ended September 30, 2015, respectively, and $293 and $2,014 for the three and nine months ended September 30, 2014, respectively.



(5)

Adjustment is net of tax benefit of $359 for the nine months ended September 30, 2015, and $428 and $1,065 for the three and nine months ended September 30, 2014, respectively, calculated utilizing the applicable federal and state tax rates for adjustment.



(6)

Adjustment is net of tax provision of $452 for the nine months ended September 30, 2015, and $5,731 and $5,925 for the three and nine months ended September 30, 2014, respectively, calculated utilizing the applicable federal and state tax rates for adjustment.



(7)

Adjustment is net of tax benefit of $42 for the nine months ended September 30, 2015, and $5 for the three and nine months ended September 30, 2014, calculated utilizing the applicable federal and state tax rates for adjustment.



(8)

Adjustment is net of tax benefit of $390 for the nine months ended September 30, 2015, and $168 for the nine months ended September 30, 2014, calculated utilizing the applicable federal and state tax rates for adjustment.



(9)

Adjustment is net of tax benefit of $141 for the nine months ended September 30, 2014, calculated utilizing the applicable federal and state tax rates for adjustment.



(10)

Adjustment is net of tax benefit of $143 and $334 for the three and nine months ended September 30, 2015, respectively, and $2,815 and $3,469 for the three and nine months ended September 30, 2014, respectively, calculated utilizing the applicable federal and state tax rates for adjustment.



(11)

Adjustment is net of tax benefit of $4,856 and $7,692 for the three and nine months ended September 30, 2014, respectively, calculated utilizing the applicable federal and state tax rates for adjustment.

 

Group 1 Automotive, Inc. Logo.

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SOURCE Group 1 Automotive, Inc.

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