Market Overview

Group 1 Automotive Reports Second Quarter 2016 Results

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Delivers Record EPS Driven by Margin Improvement and Continued Growth of Parts & Service and Finance & Insurance

HOUSTON, July 28, 2016 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), an international, Fortune 500 automotive retailer, today reported second quarter 2016 net income of $46.6 million, diluted earnings per common share of $2.12, adjusted net income (a non-GAAP measure) of $47.4 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $2.16.

As shown in the non-GAAP reconciliation tables below, the 2016 second quarter adjusted results exclude approximately $830 thousand of net after-tax adjustments, or $0.04 per share, for non-core items, which primarily consists of hail and flood-related expenses of approximately $1.7 million after-tax, or $0.08 per share; a non-cash asset impairment charge for certain leasehold improvements of approximately $633 thousand after-tax, or $0.03 per share; and partially offset by a deferred income tax benefit within our Brazil segment of approximately $1.7 million, or $0.08 per share.

"While U.S. industry sales growth moderated during the quarter, improved margins and continued growth of our parts and service and finance and insurance businesses delivered top-line revenue growth of 3.8 percent on a local currency basis, and an all-time record for diluted earnings per share," said Earl J. Hesterberg, Group 1's president and chief executive officer. "Additionally, given the ongoing value represented by our recent stock price, we continued our share repurchase program, buying approximately 1.7 million common shares since the end of March 2016."

Consolidated Results for Second Quarter 2016 (year-over-year comparable basis)

For ease of comparison, we have included constant exchange rate growth metrics both below (shown in parenthesis) and in the financial tables that follow:

  • Total revenue increased 2.1 percent (3.8 percent) to a second-quarter record of $2.8 billion; total gross profit grew 4.7 percent (6.1 percent) to $410.1 million.
  • New vehicle revenues increased 0.4 percent (2.3 percent) despite a 2.5 percent decrease in unit sales. New vehicle gross profit increased 6.6 percent (8.9 percent) to $81.1 million.
  • Retail used vehicle revenues increased 4.9 percent (6.5 percent) on 4.8 percent higher unit sales. Retail used vehicle gross profit improved 4.8 percent (6.1 percent) to $48.3 million.
  • Parts and service gross profit increased 4.9 percent (6.2 percent) on revenue growth of 6.2 percent (7.7 percent). Same Store parts and service gross profit increased 1.5 percent (2.5 percent) on revenue growth of 3.3 percent (4.5 percent).
  • Same Store Finance and Insurance (F&I) gross profit per retail unit (PRU) increased 3.1 percent (3.8 percent) to $1,435. U.S. F&I gross profit PRU increased $67 to a best-ever record of $1,602.
  • On a GAAP basis, Selling, General and Administrative (SG&A) expenses as a percent of gross profit increased 120 basis points to 72.9. Adjusted SG&A expenses as a percent of gross profit increased 80 basis points to 72.2 percent.

Segment Results for Second Quarter 2016 (year-over-year comparable basis)

  • United States:
    The Company's U.S. operations accounted for 79.3 percent of total revenues and 84.0 percent of total gross profit. Total U.S. revenues were $2.2 billion, a decrease of 3.5 percent, due to a 10.0 percent decrease in retail new vehicle unit sales, as well as a slight decrease of 1.6 percent in finance and insurance revenue, driven by the decline in retail unit sales. While new vehicle sales volume contracted, new vehicle gross profit per unit sold grew $246, or 15.3 percent per unit, to $1,857. This margin performance delivered a new vehicle gross profit growth of 3.7 percent.

    On a GAAP basis, SG&A expenses as a percent of gross profit increased 110 basis points to 71.2 percent and operating margin was flat at 4.0 percent. Adjusted SG&A expenses as a percent of gross profit increased 50 basis points to 70.3 percent and adjusted operating margin was flat at 4.1 percent.

  • United Kingdom:
    The Company's U.K. operations accounted for 16.8 percent of total revenues and 13.3 percent of total gross profit. Total U.K. revenues increased 51.8 percent (62.1 percent) to $467.8 million, and gross profit increased 60.2 percent (71.5 percent) to $54.3 million. Revenue growth was primarily driven by 66.1 percent (77.7 percent) growth in F&I, 63.5 percent (74.7 percent) growth in new vehicles, and 58.5 percent (69.3 percent) growth in parts and service. On a local currency basis, Same Store revenue increased 9.4 percent, reflecting increases in all areas of the business.

    On a Same Store GAAP basis, SG&A expenses as a percent of gross profit improved 280 basis points to 75.8 percent and operating margin grew 40 basis points to 2.4 percent. On a Same Store basis, adjusted SG&A expenses as a percent of gross profit improved 220 basis points to 75.8 percent and adjusted operating margin grew 30 basis points to 2.4 percent.

  • Brazil:
    The Company's Brazilian operations accounted for 3.9 percent of total revenues and 2.7 percent of total gross profit. Despite Brazil's new vehicle industry decline of 22 percent from second quarter 2015, the Company's total revenue, on a Same Store local currency basis, was only down 4.1 percent. Significant revenue growth of 12.8 percent in used retail, 7.1 percent in parts and service, and 30.1 percent in F&I mostly offset the decline in new vehicle sales.

Corporate Development

As previously announced, in April 2016, the Company acquired two franchises in Brazil, which include BMW and Toyota, and also began operations at the Land Rover and Jaguar open point that was awarded last year. These acquisitions are expected to generate $20 million in estimated annual revenues.

Also as previously announced, in April 2016, the Company disposed of one Peugeot franchise in Brazil. In June 2016, the disposition of the last remaining Peugeot store within the Company's portfolio was completed. These franchises represented approximately $15 million of annual revenues.

Share Repurchase Authorization

During the second quarter of 2016, the Company repurchased 1,462,144 shares at an average price of $56.97 for a total of $83.3 million of which 911,207 and $50.0 million were previously announced purchases in April 2016. As of July 27, 2016, the Company has repurchased an additional 244,205 shares at an average price of $50.61 for a total of $12.4 million, and $22.4 million remains available under the Company's prior common stock share repurchase authorization. Year to date, the Company has repurchased 2.3 million shares representing a 10 percent reduction from the previously announced share count as of December 31, 2015. Purchases may be made from time to time in the open market or in privately negotiated transactions, based on market conditions, legal requirements and other corporate considerations and subject to Board approval and covenant restrictions.

SECOND QUARTER EARNINGS CONFERENCE CALL DETAILS

The Company's senior management will host a conference call today at 10 a.m. ET to discuss the second quarter financial results and the Company's outlook and strategy.

The conference call will be simulcast live on the Internet at www.group1auto.com, then click on 'Investor Relations' and then 'Events' or through this link: http://www.group1corp.com/events. A webcast replay will be available for 30 days.

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

Domestic:

1-888-317-6003

International:

1-412-317-6061

Conference ID: 

1346459

A telephonic replay will be available following the call through August 4, 2016 by dialing:

Domestic:

1-877-344-7529

International:

1-412-317-0088

Replay ID: 

10089389

 

ABOUT GROUP 1 AUTOMOTIVE, INC.

Group 1 owns and operates 161 automotive dealerships, 212 franchises, and 37 collision centers in the United States, the United Kingdom and Brazil that offer 33 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service contracts; provides automotive maintenance and repair services; and sells vehicle parts.

Investors please visit www.group1corp.com, www.group1auto.com, www.group1collision.com, www.facebook.com/group1auto, and www.twitter.com/group1auto, where Group 1 discloses additional information about the Company, its business, and its results of operations.

FORWARD-LOOKING STATEMENTS

Certain statements in this release may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These are statements related to future, not past, events and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. In this context, the forward-looking statements often include statements regarding our goals, plans, projections and guidance regarding our financial position, results of operations, market position, pending and potential future acquisitions and business strategy, and often contain words such as "expects," "anticipates," "plans," "believes," "may" or "will" and similar expressions. Any such forward-looking statements are not assurances of future performance and involve risks and uncertainties that may cause actual results to differ materially from those set forth in the statements. These risks and uncertainties include, among other things, (a) general economic and business conditions, (b) the level of manufacturer incentives, (c) the future regulatory environment, (d) our ability to obtain an inventory of desirable new and used vehicles, (e) our relationship with our automobile manufacturers and the willingness of manufacturers to approve future acquisitions, (f) our cost of financing and the availability of credit for consumers, (g) our ability to complete acquisitions and dispositions and the risks associated therewith, (h) foreign exchange controls and currency fluctuations, and (i) our ability to retain key personnel. For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with the SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.

NON-GAAP FINANCIAL MEASURES

This press release and the attached financial tables contain certain non-GAAP financial performance measures as defined under SEC rules, such as adjusted net income and adjusted earnings per share from continuing operations, which exclude certain items disclosed in the attached financial tables. As required by SEC rules, the Company provides reconciliations of these measures to the most directly comparable GAAP measures. Management believes that these non-GAAP financial performance measures improve the transparency of the Company's disclosure, present useful information to investors, and provide a meaningful presentation of the Company's results from its core business operations excluding the impact of items not related to the Company's ongoing core business operations, and improve the period-to-period comparability of the Company's results from its core business operations.

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

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







Group 1 Automotive, Inc.

Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)








 Three Months Ended June 30, 


2016


2015


% Increase/
(Decrease)

REVENUES:






New vehicle retail sales

$   1,540,759


$   1,534,262


0.4

Used vehicle retail sales

715,778


682,294


4.9

Used vehicle wholesale sales

96,279


101,512


(5.2)

Parts and service

322,073


303,193


6.2

Finance and insurance

107,560


105,219


2.2

Total revenues

2,782,449


2,726,480


2.1







COST OF SALES:






New vehicle retail sales

1,459,611


1,458,132


0.1

Used vehicle retail sales

667,513


636,235


4.9

Used vehicle wholesale sales

96,331


102,445


(6.0)

Parts and service

148,875


138,095


7.8

Total cost of sales

2,372,330


2,334,907


1.6







GROSS PROFIT

410,119


391,573


4.7







SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

299,022


280,568


6.6







DEPRECIATION AND AMORTIZATION EXPENSE

12,713


11,946


6.4







ASSET IMPAIRMENTS

1,024


1,039


(1.4)







OPERATING INCOME

97,360


98,020


(0.7)







OTHER EXPENSE:






Floorplan interest expense

(11,593)


(10,015)


15.8

Other interest expense, net

(16,705)


(14,228)


17.4

INCOME BEFORE INCOME TAXES

69,062


73,777


(6.4)







PROVISION FOR INCOME TAXES

(22,482)


(27,467)


(18.1)







NET INCOME

$        46,580


$        46,310


0.6

Less: Earnings allocated to participating securities

$          1,884


$          1,792


5.1

Earnings available to diluted common shares

$        44,696


$        44,518


0.4

DILUTED EARNINGS PER SHARE

$            2.12


$            1.91


11.0

Weighted average dilutive common shares outstanding

21,070


23,315


(9.6)

Weighted average participating securities

892


944


(5.5)

Total weighted average shares outstanding

21,962


24,259


(9.5)








 Six Months Ended June 30, 


2016


2015


% Increase/
(Decrease)

REVENUES:






New vehicle retail sales

$   2,950,609


$   2,866,986


2.9

Used vehicle retail sales

1,403,949


1,305,487


7.5

Used vehicle wholesale sales

197,871


201,704


(1.9)

Parts and service

630,665


585,382


7.7

Finance and insurance

207,710


199,775


4.0

Total revenues

5,390,804


5,159,334


4.5







COST OF SALES:






New vehicle retail sales

2,797,734


2,721,125


2.8

Used vehicle retail sales

1,306,484


1,213,307


7.7

Used vehicle wholesale sales

196,474


199,958


(1.7)

Parts and service

290,891


269,487


7.9

Total cost of sales

4,591,583


4,403,877


4.3







GROSS PROFIT

799,221


755,457


5.8







SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

592,687


552,037


7.4







DEPRECIATION AND AMORTIZATION EXPENSE

25,177


23,630


6.5







ASSET IMPAIRMENTS

1,956


1,039


88.3







OPERATING INCOME

179,401


178,751


0.4







OTHER EXPENSE:






Floorplan interest expense

(22,603)


(19,362)


16.7

Other interest expense, net

(33,634)


(28,139)


19.5

INCOME BEFORE INCOME TAXES

123,164


131,250


(6.2)







PROVISION FOR INCOME TAXES

(42,293)


(49,126)


(13.9)







NET INCOME

$        80,871


$        82,124


(1.5)

Less: Earnings allocated to participating securities

$          3,223


$          3,176


1.5

Earnings available to diluted common shares

$        77,648


$        78,948


(1.6)

DILUTED EARNINGS PER SHARE

$            3.57


$            3.38


5.6

Weighted average dilutive common shares outstanding

21,762


23,380


(6.9)

Weighted average participating securities

907


938


(3.3)

Total weighted average shares outstanding

22,669


24,318


(6.8)

 

Group 1 Automotive, Inc.

Consolidated Balance Sheets

(Unaudited)

(Dollars in thousands)










June 30,
2016


December 31,
2015


% Increase/
(Decrease)

 ASSETS: 







 CURRENT ASSETS: 







 Cash and cash equivalents 


$         24,965


$          13,037


91.5

 Contracts in transit and vehicle receivables, net 


212,304


252,438


(15.9)

 Accounts and notes receivable, net 


151,655


157,768


(3.9)

 Inventories, net 


1,784,114


1,737,751


2.7

 Prepaid expenses and other current assets 


28,919


27,376


5.6

 Total current assets 


2,201,957


2,188,370


0.6

 PROPERTY AND EQUIPMENT, net 


1,081,232


1,033,981


4.6

 GOODWILL AND INTANGIBLE FRANCHISE RIGHTS 


1,204,955


1,162,503


3.7

 OTHER ASSETS 


12,656


11,862


6.7

 Total assets 


$    4,500,800


$     4,396,716


2.4








 LIABILITIES AND STOCKHOLDERS' EQUITY: 







 CURRENT LIABILITIES: 







 Floorplan notes payable - credit facility and other 


$    1,239,220


$     1,265,719


(2.1)

 Offset account related to floorplan notes payable - credit facility 


(35,461)


(110,759)


(68.0)

 Floorplan notes payable - manufacturer affiliates 


397,295


389,071


2.1

 Offset account related to floorplan notes payable - manufacturer affiliates 


(27,500)


(25,500)


7.8

 Current maturities of long-term debt and short-term financing 


42,993


54,991


(21.8)

 Accounts payable 


313,219


280,423


11.7

 Accrued expenses 


182,108


185,323


(1.7)

 Total current liabilities 


2,111,874


2,039,268


3.6

 5.00% SENIOR NOTES (principal of $550,000 at June 30, 2016 and December 31, 2015, respectively) 


539,690


538,933


0.1

 5.25% SENIOR NOTES (principal of $300,000 at June 30, 2016 and December 31, 2015, respectively) 


295,320


295,156


0.1

 ACQUISITION LINE 


10,000



100.0

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


360,141


317,290


13.5

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


45,789


48,155


(4.9)

 DEFERRED INCOME TAXES 


140,462


136,644


2.8

 LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES 


49,438


31,153


58.7

 OTHER LIABILITIES 


80,534


71,865


12.1

 STOCKHOLDERS' EQUITY: 







 Common stock 


257


257


 Additional paid-in capital 


284,887


291,092


(2.1)

 Retained earnings 


996,944


926,169


7.6

 Accumulated other comprehensive loss 


(154,404)


(137,984)


11.9

 Treasury stock 


(260,132)


(161,282)


61.3

 Total stockholders' equity 


867,552


918,252


(5.5)

 Total liabilities and stockholders' equity 


$    4,500,800


$     4,396,716


2.4

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)














Three Months Ended


Six Months Ended




June 30,


June 30,




2016 (%)


2015 (%)


2016 (%)


2015 (%)

NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:








Region

Geographic Market









East

Massachusetts


5.0


6.5


4.9


6.2


Georgia


4.1


4.6


4.0


4.6


Florida


2.6


2.3


2.5


1.8


New Hampshire


1.9


2.0


1.8


1.9


New Jersey


1.6


2.4


1.6


2.3


Mississippi


1.6


1.5


1.5


1.5


Louisiana


1.4


1.6


1.4


1.6


South Carolina


1.4


1.4


1.4


1.4


Alabama


0.9


0.7


0.9


0.8


Maryland


0.5


0.5


0.5


0.5




21.0


23.5


20.5


22.6











West

Texas


36.5


38.5


36.6


38.6


California


9.3


10.1


9.2


9.8


Oklahoma


6.8


7.5


7.0


7.6


Kansas


1.9


2.1


1.9


2.1


Louisiana


0.6


0.7


0.6


0.7




55.1


58.9


55.3


58.8











International

United Kingdom


18.0


10.5


18.0


10.9


Brazil


5.9


7.1


6.2


7.7




100.0


100.0


100.0


100.0











NEW VEHICLE UNIT SALES BRAND MIX:









Toyota/Scion/Lexus


24.8


26.9


24.3


26.5

BMW/MINI


13.5


11.3


13.3


11.5

Ford/Lincoln


10.9


11.2


11.2


11.6

Volkswagen/Audi/Porsche


10.9


7.2


10.8


6.6

Honda/Acura


10.4


10.8


10.4


10.8

Chevrolet/GMC/Buick/Cadillac


7.6


7.3


7.7


7.4

Nissan


6.2


8.2


7.0


8.7

Hyundai/Kia


4.3


6.4


4.5


6.0

Mercedes-Benz/smart/Sprinter


4.3


4.3


4.0


4.2

Chrysler/Dodge/Jeep/RAM


4.1


4.8


4.1


4.6

Other


3.0


1.6


2.7


2.1




100.0


100.0


100.0


100.0

 

Group 1 Automotive, Inc.

Additional Information - U.S.

(Unaudited)

(Dollars in thousands, except per unit amounts)










Three Months Ended June 30,



2016


2015


% Increase/
(Decrease)

REVENUES:







New vehicle retail sales


$   1,203,311


$   1,279,569


(6.0)

Used vehicle retail sales


575,280


572,533


0.5

Used vehicle wholesale sales


62,062


73,493


(15.6)

Total used


637,342


646,026


(1.3)

Parts and service


270,525


264,063


2.4

Finance and insurance


96,204


97,789


(1.6)

Total


$   2,207,382


$   2,287,447


(3.5)








GROSS MARGIN %:







New vehicle retail sales


5.1


4.6



Used vehicle retail sales


7.0


7.0



Used vehicle wholesale sales



(0.6)



Total used


6.3


6.2



Parts and service


54.2


55.0



Finance and insurance


100.0


100.0



Total


15.6


15.0










GROSS PROFIT:







New vehicle retail sales


$        61,640


$        59,434


3.7

Used vehicle retail sales


40,184


40,301


(0.3)

Used vehicle wholesale sales


27


(457)


105.9

Total used


40,211


39,844


0.9

Parts and service


146,541


145,117


1.0

Finance and insurance


96,204


97,789


(1.6)

Total


$      344,596


$      342,184


0.7








UNITS SOLD:







Retail new vehicles sold


33,191


36,882


(10.0)

Retail used vehicles sold


26,856


26,835


0.1

Wholesale used vehicles sold


9,476


11,265


(15.9)

Total used


36,332


38,100


(4.6)








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$        36,254


$        34,694


4.5

Used vehicle retail


$        21,421


$        21,335


0.4








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$          1,857


$          1,611


15.3

Used vehicle retail sales


1,496


1,502


(0.4)

Used vehicle wholesale sales


3


(41)


107.3

Total used


1,107


1,046


5.8

Finance and insurance (per retail unit)


$          1,602


$          1,535


4.4








OTHER: 







SG&A expenses


$      245,389


$      239,863


2.3

Adjusted SG&A expenses(1)


$      242,370


$      238,964


1.4

SG&A as % revenues


11.1


10.5



Adjusted SG&A as % revenues (1)


11.0


10.4



SG&A as % gross profit


71.2


70.1



Adjusted SG&A as % gross profit (1)


70.3


69.8



Operating margin %


4.0


4.0



Adjusted operating margin % (1)


4.1


4.1



Pretax margin %


2.8


3.0



Adjusted pretax margin % (1)


3.0


3.1










INTEREST EXPENSE:







Floorplan interest expense


$      (10,401)


$        (8,958)


16.1

Floorplan assistance


12,100


12,583


(3.8)

Net floorplan income (expense)


$          1,699


$          3,625


(53.1)

Other interest income (expense), net


$      (15,357)


$      (13,073)


17.5

















Six Months Ended June 30,



2016


2015


% Increase/
(Decrease)

REVENUES:







New vehicle retail sales


$   2,303,703


$   2,366,728


(2.7)

Used vehicle retail sales


1,134,044


1,084,506


4.6

Used vehicle wholesale sales


130,935


142,871


(8.4)

Total used


1,264,979


1,227,377


3.1

Parts and service


533,983


507,007


5.3

Finance and insurance


186,350


184,835


0.8

Total


$   4,289,015


$   4,285,947


0.1








GROSS MARGIN %:







New vehicle retail sales


5.0


4.8



Used vehicle retail sales


7.4


7.5



Used vehicle wholesale sales


0.7


1.2



Total used


6.7


6.7



Parts and service


54.4


54.5



Finance and insurance


100.0


100.0



Total


15.8


15.3










GROSS PROFIT:







New vehicle retail sales


$      115,787


$      113,121


2.4

Used vehicle retail sales


83,639


80,853


3.4

Used vehicle wholesale sales


871


1,688


(48.4)

Total used


84,510


82,541


2.4

Parts and service


290,660


276,175


5.2

Finance and insurance


186,350


184,835


0.8

Total


$      677,307


$      656,672


3.1








UNITS SOLD:







Retail new vehicles sold


63,992


68,320


(6.3)

Retail used vehicles sold


53,687


51,983


3.3

Wholesale used vehicles sold


19,889


21,809


(8.8)

Total used


73,576


73,792


(0.3)








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$        36,000


$        34,642


3.9

Used vehicle retail


$        21,123


$        20,863


1.2








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$          1,809


$          1,656


9.2

Used vehicle retail sales


1,558


1,555


0.2

Used vehicle wholesale sales


44


77


(42.9)

Total used


1,149


1,119


2.7

Finance and insurance (per retail unit)


$          1,584


$          1,536


3.1








OTHER: 







SG&A expenses


$      491,229


$      469,836


4.6

Adjusted SG&A expenses(1)


$      486,456


$      468,937


3.7

SG&A as % revenues


11.5


11.0



Adjusted SG&A as % revenues (1)


11.3


10.9



SG&A as % gross profit


72.5


71.5



Adjusted SG&A as % gross profit (1)


71.8


71.4



Operating margin %


3.8


3.9



Adjusted operating margin % (1)


4.0


3.9



Pretax margin %


2.6


2.9



Adjusted pretax margin % (1)


2.8


2.9










INTEREST EXPENSE:







Floorplan interest expense


$      (20,449)


$      (17,476)


17.0

Floorplan assistance


23,351


23,159


0.8

Net floorplan income (expense)


$          2,902


$          5,683


(48.9)

Other interest income (expense), net


$      (30,870)


$      (25,797)


19.7


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

 

Group 1 Automotive, Inc.

Additional Information - U.K.

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended June 30,



2016


2015


% Increase/
(Decrease)


Local Currency
% Increase/
(Decrease)

REVENUES:









New vehicle retail sales


$  262,028


$  160,245


63.5


74.7

Used vehicle retail sales


122,827


91,172


34.7


43.8

Used vehicle wholesale sales


33,367


25,756


29.6


38.3

Total used


156,194


116,928


33.6


42.5

Parts and service


39,949


25,202


58.5


69.3

Finance and insurance


9,621


5,792


66.1


77.7

Total


$  467,792


$  308,167


51.8


62.1










GROSS MARGIN %:









New vehicle retail sales


5.9


6.1





Used vehicle retail sales


5.6


5.4





Used vehicle wholesale sales


(0.3)


(2.5)





Total used


4.3


3.6





Parts and service


56.3


55.8





Finance and insurance


100.0


100.0





Total


11.6


11.0














GROSS PROFIT:









New vehicle retail sales


$    15,462


$      9,792


57.9


70.0

Used vehicle retail sales


6,854


4,894


40.0


49.1

Used vehicle wholesale sales


(114)


(632)


82.0


80.2

Total used


6,740


4,262


58.1


68.2

Parts and service


22,505


14,070


60.0


71.0

Finance and insurance


9,621


5,792


66.1


77.7

Total


$    54,328


$    33,916


60.2


71.5










UNITS SOLD:









Retail new vehicles sold


7,868


4,686


67.9



Retail used vehicles sold


5,006


3,638


37.6



Wholesale used vehicles sold


3,997


2,956


35.2



Total used


9,003


6,594


36.5












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$    33,303


$    34,197


(2.6)


4.1

Used vehicle retail


$    24,536


$    25,061


(2.1)


4.5










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$      1,965


$      2,090


(6.0)


1.2

Used vehicle retail sales


1,369


1,345


1.8


8.3

Used vehicle wholesale sales


(29)


(214)


86.4


85.4

Total used


749


646


15.9


23.2

Finance and insurance (per retail unit)


$         747


$         696


7.3


14.9










OTHER: 









SG&A expenses


$    42,109


$    26,641


58.1


68.8

Adjusted SG&A expenses(1)


$    42,109


$    26,433


59.3


70.1

SG&A as % revenues


9.0


8.6





Adjusted SG&A as % revenues (1)


9.0


8.6





SG&A as % gross profit


77.5


78.5





Adjusted SG&A as % gross profit (1)


77.5


77.9





Operating margin %


2.2


2.0





Adjusted operating margin % (1)


2.2


2.1





Pretax margin %


1.7


1.6





Adjusted pretax margin % (1)


1.7


1.6














INTEREST EXPENSE:









Floorplan interest expense


$     (1,134)


$        (555)


104.3


118.5

Floorplan assistance


225


198


13.6


20.8

Net floorplan income (expense)


$        (909)


$        (357)


154.6


172.7

Other interest income (expense), net


$     (1,385)


$        (824)


68.1


79.6





















Six Months Ended June 30,



2016


2015


% Increase/
(Decrease)


Local Currency
% Increase/
(Decrease)

REVENUES:









New vehicle retail sales


$  508,564


$  311,456


63.3


73.4

Used vehicle retail sales


232,944


180,308


29.2


37.3

Used vehicle wholesale sales


65,399


53,834


21.5


29.1

Total used


298,343


234,142


27.4


35.4

Parts and service


74,498


50,790


46.7


56.0

Finance and insurance


18,283


11,320


61.5


71.8

Total


$  899,688


$  607,708


48.0


57.3










GROSS MARGIN %:









New vehicle retail sales


5.8


6.3





Used vehicle retail sales


5.2


5.3





Used vehicle wholesale sales


0.7


(0.6)





Total used


4.2


3.9





Parts and service


55.0


54.7





Finance and insurance


100.0


100.0





Total


11.2


11.2














GROSS PROFIT:









New vehicle retail sales


$    29,316


$    19,742


48.5


58.1

Used vehicle retail sales


12,064


9,532


26.6


34.4

Used vehicle wholesale sales


458


(311)


247.3


264.1

Total used


12,522


9,221


35.8


44.4

Parts and service


40,953


27,791


47.4


56.8

Finance and insurance


18,283


11,320


61.5


71.8

Total


$  101,074


$    68,074


48.5


57.9










UNITS SOLD:









Retail new vehicles sold


15,226


9,195


65.6



Retail used vehicles sold


9,601


7,281


31.9



Wholesale used vehicles sold


7,639


5,891


29.7



Total used


17,240


13,172


30.9












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$    33,401


$    33,872


(1.4)


4.7

Used vehicle retail


$    24,262


$    24,764


(2.0)


4.1










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$      1,925


$      2,147


(10.3)


(4.5)

Used vehicle retail sales


1,257


1,309


(4.0)


1.9

Used vehicle wholesale sales


60


(53)


213.2


226.5

Total used


726


700


3.7


10.3

Finance and insurance (per retail unit)


$         736


$         687


7.1


14.0










OTHER: 









SG&A expenses


$    79,545


$    53,403


49.0


58.4

Adjusted SG&A expenses(1)


$    78,984


$    53,195


48.5


57.9

SG&A as % revenues


8.8


8.8





Adjusted SG&A as % revenues (1)


8.8


8.8





SG&A as % gross profit


78.7


78.4





Adjusted SG&A as % gross profit (1)


78.1


78.1





Operating margin %


2.0


2.1





Adjusted operating margin % (1)


2.1


2.1





Pretax margin %


1.5


1.6





Adjusted pretax margin % (1)


1.6


1.7














INTEREST EXPENSE:









Floorplan interest expense


$     (2,054)


$     (1,065)


92.9


105.4

Floorplan assistance


488


383


27.4


35.2

Net floorplan income (expense)


$     (1,566)


$        (682)


129.6


144.8

Other interest income (expense), net


$     (2,667)


$     (1,559)


71.1


82.0


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

 

Group 1 Automotive, Inc.

Additional Information - Brazil

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended June 30,



2016


2015


% Increase/
(Decrease)


Local Currency
% Increase/
(Decrease)

REVENUES:









New vehicle retail sales


$      75,420


$      94,448


(20.1)


(9.0)

Used vehicle retail sales


17,671


18,589


(4.9)


8.5

Used vehicle wholesale sales


850


2,263


(62.4)


(57.4)

Total used


18,521


20,852


(11.2)


1.3

Parts and service


11,599


13,928


(16.7)


(5.1)

Finance and insurance


1,735


1,638


5.9


20.8

Total


$    107,275


$    130,866


(18.0)


(6.5)










GROSS MARGIN %:









New vehicle retail sales


5.4


7.3





Used vehicle retail sales


6.9


4.6





Used vehicle wholesale sales


4.1


6.9





Total used


6.8


4.9





Parts and service


35.8


42.4





Finance and insurance


100.0


100.0





Total


10.4


11.8














GROSS PROFIT:









New vehicle retail sales


$        4,046


$        6,904


(41.4)


(33.2)

Used vehicle retail sales


1,227


864


42.0


61.9

Used vehicle wholesale sales


35


156


(77.6)


(74.0)

Total used


1,262


1,020


23.7


41.1

Parts and service


4,152


5,911


(29.8)


(19.8)

Finance and insurance


1,735


1,638


5.9


20.8

Total


$      11,195


$      15,473


(27.6)


(17.4)










UNITS SOLD:









Retail new vehicles sold


2,585


3,197


(19.1)



Retail used vehicles sold


1,089


966


12.7



Wholesale used vehicles sold


211


406


(48.0)



Total used


1,300


1,372


(5.2)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$      29,176


$      29,543


(1.2)


12.6

Used vehicle retail


$      16,227


$      19,243


(15.7)


(3.8)










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$        1,565


$        2,160


(27.5)


(17.3)

Used vehicle retail sales


1,127


894


26.1


43.6

Used vehicle wholesale sales


166


384


(56.8)


(49.9)

Total used


971


743


30.7


48.9

Finance and insurance (per retail unit)


$           472


$           393


20.1


36.9










OTHER: 









SG&A expenses


$      11,524


$      14,063


(18.1)


(6.6)

Adjusted SG&A expenses(1)


$      11,524


$      14,063


(18.1)


(6.6)

SG&A as % revenues


10.7


10.7





Adjusted SG&A as % revenues (1)


10.7


10.7





SG&A as % gross profit


102.9


90.9





Adjusted SG&A as % gross profit (1)


102.9


90.9





Operating margin %


(0.6)


0.3





Adjusted operating margin % (1)


(0.6)


0.7





Pretax margin %


(0.6)


(0.4)





Adjusted pretax margin % (1)


(0.6)















INTEREST EXPENSE:









Floorplan interest expense


$           (58)


$         (502)


(88.4)


(86.8)

Floorplan assistance




-


-

Net floorplan income (expense)


$           (58)


$         (502)


(88.4)


(86.8)

Other interest income (expense), net


$             37


$         (331)


(111.2)


(112.6)





















Six Months Ended June 30,



2016


2015


% Increase/
(Decrease)


Local Currency
% Increase/
(Decrease)

REVENUES:









New vehicle retail sales


$    138,342


$    188,802


(26.7)


(9.0)

Used vehicle retail sales


36,961


40,673


(9.1)


14.7

Used vehicle wholesale sales


1,537


4,999


(69.3)


(61.5)

Total used


38,498


45,672


(15.7)


6.3

Parts and service


22,184


27,585


(19.6)


-

Finance and insurance


3,077


3,620


(15.0)


5.9

Total


$    202,101


$    265,679


(23.9)


(5.3)










GROSS MARGIN %:









New vehicle retail sales


5.6


6.9





Used vehicle retail sales


4.8


4.4





Used vehicle wholesale sales


4.4


7.4





Total used


4.8


4.7





Parts and service


36.8


43.2





Finance and insurance


100.0


100.0





Total


10.3


11.6














GROSS PROFIT:









New vehicle retail sales


$        7,772


$      12,998


(40.2)


(25.6)

Used vehicle retail sales


1,762


1,795


(1.8)


21.4

Used vehicle wholesale sales


68


369


(81.6)


(76.6)

Total used


1,830


2,164


(15.4)


4.6

Parts and service


8,161


11,929


(31.6)


(14.5)

Finance and insurance


3,077


3,620


(15.0)


5.9

Total


$      20,840


$      30,711


(32.1)


(15.5)










UNITS SOLD:









Retail new vehicles sold


5,207


6,489


(19.8)



Retail used vehicles sold


2,454


2,158


13.7



Wholesale used vehicles sold


522


867


(39.8)



Total used


2,976


3,025


(1.6)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$      26,568


$      29,096


(8.7)


13.4

Used vehicle retail


$      15,062


$      18,848


(20.1)


0.8










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$        1,493


$        2,003


(25.5)


(7.2)

Used vehicle retail sales


718


832


(13.7)


6.7

Used vehicle wholesale sales


130


426


(69.5)


(61.1)

Total used


615


715


(14.0)


6.4

Finance and insurance (per retail unit)


$           402


$           419


(4.1)


19.6










OTHER: 









SG&A expenses


$      21,913


$      28,798


(23.9)


(5.1)

Adjusted SG&A expenses(1)


$      21,542


$      28,798


(25.2)


(6.8)

SG&A as % revenues


10.8


10.8





Adjusted SG&A as % revenues (1)


10.7


10.8





SG&A as % gross profit


105.2


93.8





Adjusted SG&A as % gross profit (1)


103.4


93.8





Operating margin %


(1.0)


0.1





Adjusted operating margin % (1)


(0.6)


0.3





Pretax margin %


(1.1)


(0.5)





Adjusted pretax margin % (1)


(0.7)


(0.3)














INTEREST EXPENSE:









Floorplan interest expense


$         (100)


$         (821)


(87.8)


(84.8)

Floorplan assistance




-


-

Net floorplan income (expense)


$         (100)


$         (821)


(87.8)


(84.8)

Other interest income (expense), net


$           (97)


$         (784)


(87.6)


(82.6)


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

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended June 30,



2016


2015


% Increase/
(Decrease)


Local Currency
% Increase/
(Decrease)

REVENUES:









New vehicle retail sales


$   1,540,759


$   1,534,262


0.4


2.3

Used vehicle retail sales


715,778


682,294


4.9


6.5

Used vehicle wholesale sales


96,279


101,512


(5.2)


(2.8)

Total used


812,057


783,806


3.6


5.3

Parts and service


322,073


303,193


6.2


7.7

Finance and insurance


107,560


105,219


2.2


3.1

Total


$   2,782,449


$   2,726,480


2.1


3.8










GROSS MARGIN %:









New vehicle retail sales


5.3


5.0





Used vehicle retail sales


6.7


6.8





Used vehicle wholesale sales


(0.1)


(0.9)





Total used


5.9


5.8





Parts and service


53.8


54.5





Finance and insurance


100.0


100.0





Total


14.7


14.4














GROSS PROFIT:









New vehicle retail sales


$        81,148


$        76,130


6.6


8.9

Used vehicle retail sales


48,265


46,059


4.8


6.1

Used vehicle wholesale sales


(52)


(933)


94.4


93.8

Total used


48,213


45,126


6.8


8.2

Parts and service


173,198


165,098


4.9


6.2

Finance and insurance


107,560


105,219


2.2


3.1

Total


$      410,119


$      391,573


4.7


6.1










UNITS SOLD:









Retail new vehicles sold


43,644


44,765


(2.5)



Retail used vehicles sold


32,951


31,439


4.8



Wholesale used vehicles sold


13,684


14,627


(6.4)



Total used


46,635


46,066


1.2












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$        35,303


$        34,274


3.0


4.9

Used vehicle retail


$        21,722


$        21,702


0.1


1.6










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$          1,859


$          1,701


9.3


11.7

Used vehicle retail sales


1,465


1,465


0.0


1.3

Used vehicle wholesale sales


(4)


(64)


93.8


93.3

Total used


1,034


980


5.5


6.9

Finance and insurance (per retail unit)


$          1,404


$          1,381


1.7


2.6










OTHER: 









SG&A expenses


$      299,022


$      280,567


6.6


8.2

Adjusted SG&A expenses(1)


$      296,003


$      279,460


5.9


7.5

SG&A as % revenues


10.7


10.3





Adjusted SG&A as % revenues (1)


10.6


10.2





SG&A as % gross profit


72.9


71.7





Adjusted SG&A as % gross profit (1)


72.2


71.4





Operating margin %


3.5


3.6





Adjusted operating margin % (1)


3.6


3.7





Pretax margin %


2.5


2.7





Adjusted pretax margin % (1)


2.6


2.8














INTEREST EXPENSE:









Floorplan interest expense


$      (11,593)


$      (10,015)


15.8


16.6

Floorplan assistance


12,325


12,781


(3.6)


(3.6)

Net floorplan income (expense)


$             732


$          2,766


(73.5)


(76.6)

Other interest income (expense), net


$      (16,705)


$      (14,228)


17.4


18.0





















Six Months Ended June 30,



2016


2015


% Increase/
(Decrease)


Local Currency
% Increase/
(Decrease)

REVENUES:









New vehicle retail sales


$   2,950,609


$   2,866,986


2.9


5.2

Used vehicle retail sales


1,403,949


1,305,487


7.5


9.4

Used vehicle wholesale sales


197,871


201,704


(1.9)


0.3

Total used


1,601,820


1,507,191


6.3


8.2

Parts and service


630,665


585,382


7.7


9.5

Finance and insurance


207,710


199,775


4.0


4.9

Total


$   5,390,804


$   5,159,334


4.5


6.5










GROSS MARGIN %:









New vehicle retail sales


5.2


5.1





Used vehicle retail sales


6.9


7.1





Used vehicle wholesale sales


0.7


0.9





Total used


6.2


6.2





Parts and service


53.9


54.0





Finance and insurance


100.0


100.0





Total


14.8


14.6














GROSS PROFIT:









New vehicle retail sales


$      152,875


$      145,861


4.8


7.4

Used vehicle retail sales


97,465


92,180


5.7


7.0

Used vehicle wholesale sales


1,397


1,746


(20.0)


(15.9)

Total used


98,862


93,926


5.3


6.6

Parts and service


339,774


315,895


7.6


9.0

Finance and insurance


207,710


199,775


4.0


4.9

Total


$      799,221


$      755,457


5.8


7.3










UNITS SOLD:









Retail new vehicles sold


84,425


84,004


0.5



Retail used vehicles sold


65,742


61,422


7.0



Wholesale used vehicles sold


28,050


28,567


(1.8)



Total used


93,792


89,989


4.2












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$        34,949


$        34,129


2.4


4.7

Used vehicle retail


$        21,355


$        21,254


0.5


2.2










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$          1,811


$          1,736


4.3


6.9

Used vehicle retail sales


1,483


1,501


(1.2)


-

Used vehicle wholesale sales


50


61


(18.0)


(14.4)

Total used


1,054


1,044


1.0


2.2

Finance and insurance (per retail unit)


$          1,383


$          1,374


0.7


1.6










OTHER: 









SG&A expenses


$      592,687


$      552,037


7.4


9.3

Adjusted SG&A expenses(1)


$      586,983


$      550,930


6.5


8.4

SG&A as % revenues


11.0


10.7





Adjusted SG&A as % revenues (1)


10.9


10.7





SG&A as % gross profit


74.2


73.1





Adjusted SG&A as % gross profit (1)


73.4


72.9





Operating margin %


3.3


3.5





Adjusted operating margin % (1)


3.5


3.5





Pretax margin %


2.3


2.5





Adjusted pretax margin % (1)


2.4


2.6














INTEREST EXPENSE:









Floorplan interest expense


$      (22,603)


$      (19,362)


16.7


17.5

Floorplan assistance


23,839


23,542


1.3


1.3

Net floorplan income (expense)


$          1,236


$          4,180


(70.4)


(74.2)

Other interest income (expense), net


$      (33,634)


$      (28,139)


19.5


20.3


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

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)










Three Months Ended June 30,



2016


2015


% Increase/
(Decrease)

REVENUES:







New vehicle retail sales


$  1,181,468


$  1,249,136


(5.4)

Used vehicle retail sales


565,026


560,972


0.7

Used vehicle wholesale sales


61,047


71,101


(14.1)

Total used


626,073


632,073


(0.9)

Parts and service


266,069


256,783


3.6

Finance and insurance


94,476


96,357


(2.0)

Total


$  2,168,086


$  2,234,349


(3.0)








GROSS MARGIN %:







New vehicle retail sales


5.1


4.6



Used vehicle retail sales


7.0


7.1



Used vehicle wholesale sales



(0.5)



Total used


6.3


6.2



Parts and service


54.0


54.9



Finance and insurance


100.0


100.0



Total


15.6


15.0










GROSS PROFIT:







New vehicle retail sales


$       60,242


$       57,689


4.4

Used vehicle retail sales


39,567


39,628


(0.2)

Used vehicle wholesale sales


(3)


(354)


99.2

Total used


39,564


39,274


0.7

Parts and service


143,717


141,009


1.9

Finance and insurance


94,476


96,357


(2.0)

Total


$     337,999


$     334,329


1.1








UNITS SOLD:







Retail new vehicles sold


32,756


36,082


(9.2)

Retail used vehicles sold


26,524


26,367


0.6

Wholesale used vehicles sold


9,368


10,955


(14.5)

Total used


35,892


37,322


(3.8)








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$       36,069


$       34,619


4.2

Used vehicle retail


$       21,302


$       21,276


0.1








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$         1,839


$         1,599


15.0

Used vehicle retail sales


1,492


1,503


(0.7)

Used vehicle wholesale sales



(32)


100.0

Total used


1,102


1,052


4.8

Finance and insurance (per retail unit)


$         1,594


$         1,543


3.3








OTHER: 







SG&A expenses


$     241,144


$     234,247


2.9

Adjusted SG&A expenses(2)


$     238,125


$     231,932


2.7

SG&A as % revenues


11.1


10.5



Adjusted SG&A as % revenues (2)


11.0


10.4



SG&A as % gross profit


71.3


70.1



Adjusted SG&A as % gross profit (2)


70.5


69.4



Operating margin %


3.9


4.0



Adjusted operating margin % (2)


4.1


4.1












Six Months Ended June 30,



2016


2015


% Increase/
(Decrease)

REVENUES:







New vehicle retail sales


$  2,242,595


$  2,317,539


(3.2)

Used vehicle retail sales


1,103,647


1,063,036


3.8

Used vehicle wholesale sales


126,125


138,481


(8.9)

Total used


1,229,772


1,201,517


2.4

Parts and service


521,024


494,481


5.4

Finance and insurance


182,074


182,463


(0.2)

Total


$  4,175,465


$  4,196,000


(0.5)








GROSS MARGIN %:







New vehicle retail sales


5.0


4.8



Used vehicle retail sales


7.4


7.5



Used vehicle wholesale sales


0.9


1.3



Total used


6.7


6.8



Parts and service


54.3


54.5



Finance and insurance


100.0


100.0



Total


15.8


15.3










GROSS PROFIT:







New vehicle retail sales


$     112,085


$     110,337


1.6

Used vehicle retail sales


81,361


79,637


2.2

Used vehicle wholesale sales


1,088


1,755


(38.0)

Total used


82,449


81,392


1.3

Parts and service


283,098


269,295


5.1

Finance and insurance


182,074


182,463


(0.2)

Total


$     659,706


$     643,487


2.5








UNITS SOLD:







Retail new vehicles sold


62,728


67,021


(6.4)

Retail used vehicles sold


52,672


51,128


3.0

Wholesale used vehicles sold


19,480


21,311


(8.6)

Total used


72,152


72,439


(0.4)








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$       35,751


$       34,579


3.4

Used vehicle retail


$       20,953


$       20,792


0.8








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$         1,787


$         1,646


8.6

Used vehicle retail sales


1,545


1,558


(0.8)

Used vehicle wholesale sales


56


82


(31.7)

Total used


1,143


1,124


1.7

Finance and insurance (per retail unit)


$         1,578


$         1,544


2.2








OTHER: 







SG&A expenses


$     479,250


$     458,591


4.5

Adjusted SG&A expenses(2)


$     473,412


$     456,276


3.8

SG&A as % revenues


11.5


10.9



Adjusted SG&A as % revenues (2)


11.3


10.9



SG&A as % gross profit


72.6


71.3



Adjusted SG&A as % gross profit (2)


71.8


70.9



Operating margin %


3.8


3.9



Adjusted operating margin % (2)


4.0


4.0




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

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

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended June 30,



2016


2015


% Increase/
(Decrease)


Local Currency
% Increase/
(Decrease)

REVENUES:









New vehicle retail sales


$  167,601


$  160,246


4.6


11.8

Used vehicle retail sales


90,470


91,172


(0.8)


5.9

Used vehicle wholesale sales


24,789


25,755


(3.8)


2.7

Total used


115,259


116,927


(1.4)


5.2

Parts and service


26,375


25,202


4.7


11.8

Finance and insurance


6,412


5,792


10.7


18.4

Total


$  315,647


$  308,167


2.4


9.4










GROSS MARGIN %:









New vehicle retail sales


6.3


6.1





Used vehicle retail sales


5.7


5.4





Used vehicle wholesale sales


(0.7)


(2.5)





Total used


4.3


3.6





Parts and service


55.8


55.8





Finance and insurance


100.0


100.0





Total


11.6


11.0














GROSS PROFIT:









New vehicle retail sales


$    10,578


$      9,785


8.1


16.5

Used vehicle retail sales


5,165


4,894


5.5


12.4

Used vehicle wholesale sales


(175)


(632)


72.3


70.0

Total used


4,990


4,262


17.1


24.6

Parts and service


14,726


14,070


4.7


11.9

Finance and insurance


6,412


5,792


10.7


18.4

Total


$    36,706


$    33,909


8.2


15.9










UNITS SOLD:









Retail new vehicles sold


4,882


4,686


4.2



Retail used vehicles sold


3,815


3,638


4.9



Wholesale used vehicles sold


3,021


2,956


2.2



Total used


6,836


6,594


3.7












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$    34,330


$    34,197


0.4


7.3

Used vehicle retail


$    23,714


$    25,061


(5.4)


1.0










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$      2,167


$      2,088


3.8


11.8

Used vehicle retail sales


1,354


1,345


0.7


7.2

Used vehicle wholesale sales


(58)


(214)


72.9


70.7

Total used


730


646


13.0


20.2

Finance and insurance (per retail unit)


$         737


$         696


5.9


13.3










OTHER:  









SG&A expenses


$    27,819


$    26,653


4.4


11.5

Adjusted SG&A expenses(2)


$    27,819


$    26,445


5.2


12.3

SG&A as % revenues


8.8


8.6





Adjusted SG&A as % revenues (2)


8.8


8.6





SG&A as % gross profit


75.8


78.6





Adjusted SG&A as % gross profit (2)


75.8


78.0





Operating margin %


2.4


2.0





Adjusted operating margin % (2)


2.4


2.1
















Six Months Ended June 30,



2016


2015


% Increase/
(Decrease)


Local Currency
% Increase/
(Decrease)

REVENUES:









New vehicle retail sales


$  340,212


$  311,457


9.2


16.0

Used vehicle retail sales


181,986


180,308


0.9


7.3

Used vehicle wholesale sales


49,577


53,833


(7.9)


(2.2)

Total used


231,563


234,141


(1.1)


5.1

Parts and service


52,112


50,790


2.6


9.1

Finance and insurance


13,099


11,320


15.7


23.0

Total


$  636,986


$  607,708


4.8


11.4










GROSS MARGIN %:









New vehicle retail sales


6.1


6.3





Used vehicle retail sales


5.3


5.3





Used vehicle wholesale sales


0.8


(0.6)





Total used


4.3


3.9





Parts and service


55.2


54.7





Finance and insurance


100.0


100.0





Total


11.4


11.2














GROSS PROFIT:









New vehicle retail sales


$    20,868


$    19,736


5.7


12.6

Used vehicle retail sales


9,608


9,531


0.8


7.0

Used vehicle wholesale sales


412


(311)


232.5


248.1

Total used


10,020


9,220


8.7


15.6

Parts and service


28,756


27,791


3.5


10.0

Finance and insurance


13,099


11,320


15.7


23.0

Total


$    72,743


$    68,067


6.9


13.7










UNITS SOLD:









Retail new vehicles sold


10,003


9,195


8.8



Retail used vehicles sold


7,711


7,281


5.9



Wholesale used vehicles sold


6,060


5,891


2.9



Total used


13,771


13,172


4.5












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$    34,011


$    33,872


0.4


6.6

Used vehicle retail


$    23,601


$    24,764


(4.7)


1.3










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$      2,086


$      2,146


(2.8)


3.5

Used vehicle retail sales


1,246


1,309


(4.8)


1.0

Used vehicle wholesale sales


68


(53)


228.3


244.0

Total used


728


700


4.0


10.6

Finance and insurance (per retail unit)


$         739


$         687


7.6


14.4










OTHER: 









SG&A expenses


$    55,280


$    53,416


3.5


10.0

Adjusted SG&A expenses(2)


$    54,719


$    53,208


2.8


9.3

SG&A as % revenues


8.7


8.8





Adjusted SG&A as % revenues (2)


8.6


8.8





SG&A as % gross profit


76.0


78.5





Adjusted SG&A as % gross profit (2)


75.2


78.2





Operating margin %


2.4


2.1





Adjusted operating margin % (2)


2.5


2.1






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

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

 

Group 1 Automotive, Inc.

Additional Information - Same Store Brazil (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended June 30,



2016


2015


% Increase/
(Decrease)


Local Currency
% Increase/
(Decrease)

REVENUES:









New vehicle retail sales


$    70,639


$    88,007


(19.7)


(8.4)

Used vehicle retail sales


16,642


16,855


(1.3)


12.8

Used vehicle wholesale sales


660


1,654


(60.1)


(54.6)

Total used


17,302


18,509


(6.5)


6.8

Parts and service


11,142


11,862


(6.1)


7.1

Finance and insurance


1,678


1,472


14.0


30.1

Total


$  100,761


$  119,850


(15.9)


(4.1)










GROSS MARGIN %:









New vehicle retail sales


5.4


7.4





Used vehicle retail sales


7.1


4.3





Used vehicle wholesale sales


7.1


7.2





Total used


7.1


4.6





Parts and service


37.2


42.8





Finance and insurance


100.0


100.0





Total


10.7


11.6














GROSS PROFIT:









New vehicle retail sales


$      3,786


$      6,538


(42.1)


(33.9)

Used vehicle retail sales


1,175


729


61.2


84.0

Used vehicle wholesale sales


47


119


(60.5)


(55.1)

Total used


1,222


848


44.1


64.6

Parts and service


4,140


5,078


(18.5)


(6.9)

Finance and insurance


1,678


1,472


14.0


30.1

Total


$    10,826


$    13,936


(22.3)


(11.3)










UNITS SOLD:









Retail new vehicles sold


2,445


2,832


(13.7)



Retail used vehicles sold


1,045


833


25.5



Wholesale used vehicles sold


165


314


(47.5)



Total used


1,210


1,147


5.5












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$    28,891


$    31,076


(7.0)


6.1

Used vehicle retail


$    15,925


$    20,234


(21.3)


(10.1)










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$      1,548


$      2,309


(33.0)


(23.4)

Used vehicle retail sales


1,124


875


28.5


46.7

Used vehicle wholesale sales


285


379


(24.8)


(14.6)

Total used


1,010


739


36.7


56.0

Finance and insurance (per retail unit)


$         481


$         402


19.7


36.7










OTHER: 









SG&A expenses


$    10,119


$    11,667


(13.3)


(1.1)

Adjusted SG&A expenses(2)


$    10,119


$    11,667


(13.3)


(1.1)

SG&A as % revenues


10.0


9.7





Adjusted SG&A as % revenues (2)


10.0


9.7





SG&A as % gross profit


93.5


83.7





Adjusted SG&A as % gross profit (2)


93.5


83.7





Operating margin %


0.4


1.6





Adjusted operating margin % (2)


0.4


1.6
















Six Months Ended June 30,



2016


2015


% Increase/
(Decrease)


Local Currency
% Increase/
(Decrease)

REVENUES:









New vehicle retail sales


$  132,809


$  178,446


(25.6)


(7.4)

Used vehicle retail sales


35,564


37,560


(5.3)


19.9

Used vehicle wholesale sales


1,247


4,033


(69.1)


(60.8)

Total used


36,811


41,593


(11.5)


12.1

Parts and service


21,449


24,590


(12.8)


8.8

Finance and insurance


3,010


3,399


(11.4)


10.8

Total


$  194,079


$  248,028


(21.8)


(2.3)










GROSS MARGIN %:









New vehicle retail sales


5.7


7.0





Used vehicle retail sales


4.9


4.2





Used vehicle wholesale sales


6.6


7.4





Total used


5.0


4.5





Parts and service


37.6


43.8





Finance and insurance


100.0


100.0





Total


10.5


11.5














GROSS PROFIT:









New vehicle retail sales


$      7,575


$    12,406


(38.9)


(23.8)

Used vehicle retail sales


1,741


1,592


9.4


36.4

Used vehicle wholesale sales


82


300


(72.7)


(65.3)

Total used


1,823


1,892


(3.6)


20.2

Parts and service


8,063


10,773


(25.2)


(6.3)

Finance and insurance


3,010


3,399


(11.4)


10.8

Total


$    20,471


$    28,470


(28.1)


(10.2)










UNITS SOLD:









Retail new vehicles sold


5,004


5,911


(15.3)



Retail used vehicles sold


2,362


1,903


24.1



Wholesale used vehicles sold


456


698


(34.7)



Total used


2,818


2,601


8.3












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$    26,541


$    30,189


(12.1)


9.4

Used vehicle retail


$    15,057


$    19,737


(23.7)


(3.4)










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$      1,514


$      2,099


(27.9)


(10.0)

Used vehicle retail sales


737


837


(11.9)


9.9

Used vehicle wholesale sales


180


430


(58.1)


(47.0)

Total used


647


727


(11.0)


11.0

Finance and insurance (per retail unit)


$         409


$         435


(6.0)


17.5










OTHER: 









SG&A expenses


$    19,879


$    24,443


(18.7)


1.9

Adjusted SG&A expenses(2)


$    19,879


$    24,443


(18.7)


1.9

SG&A as % revenues


10.2


9.9





Adjusted SG&A as % revenues (2)


10.2


9.9





SG&A as % gross profit


97.1


85.9





Adjusted SG&A as % gross profit (2)


97.1


85.9





Operating margin %


(0.2)


1.4





Adjusted operating margin % (2)



1.4






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

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

 

Group 1 Automotive, Inc.

Additional Information - Same Store Consolidated (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended June 30,



2016


2015


% Increase/
(Decrease)


Local Currency
% Increase/
(Decrease)

REVENUES:









New vehicle retail sales


$  1,419,708


$  1,497,389


(5.2)


(3.8)

Used vehicle retail sales


672,138


668,999


0.5


1.7

Used vehicle wholesale sales


86,496


98,510


(12.2)


(10.4)

Total used


758,634


767,509


(1.2)


0.2

Parts and service


303,586


293,847


3.3


4.5

Finance and insurance


102,566


103,621


(1.0)


(0.4)

Total


$  2,584,494


$  2,662,366


(2.9)


(1.6)










GROSS MARGIN %:









New vehicle retail sales


5.3


4.9





Used vehicle retail sales


6.8


6.8





Used vehicle wholesale sales


(0.2)


(0.9)





Total used


6.0


5.8





Parts and service


53.6


54.5





Finance and insurance


100.0


100.0





Total


14.9


14.4














GROSS PROFIT:









New vehicle retail sales


$       74,606


$       74,012


0.8


2.6

Used vehicle retail sales


45,907


45,251


1.4


2.6

Used vehicle wholesale sales


(131)


(867)


84.9


84.0

Total used


45,776


44,384


3.1


4.3

Parts and service


162,583


160,157


1.5


2.5

Finance and insurance


102,566


103,621


(1.0)


(0.4)

Total


$     385,531


$     382,174


0.9


2.0










UNITS SOLD:









Retail new vehicles sold


40,083


43,600


(8.1)



Retail used vehicles sold


31,384


30,838


1.8



Wholesale used vehicles sold


12,554


14,225


(11.7)



Total used


43,938


45,063


(2.5)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$       35,419


$       34,344


3.1


4.7

Used vehicle retail


$       21,417


$       21,694


(1.3)


-










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$         1,861


$         1,698


9.6


11.6

Used vehicle retail sales


1,463


1,467


(0.3)


0.8

Used vehicle wholesale sales


(10)


(61)


83.6


81.9

Total used


1,042


985


5.8


6.9

Finance and insurance (per retail unit)


$         1,435


$         1,392


3.1


3.8










OTHER: 









SG&A expenses


$     279,082


$     272,567


2.4


3.6

Adjusted SG&A expenses(2)


$     276,063


$     270,044


2.2


3.5

SG&A as % revenues


10.8


10.2





Adjusted SG&A as % revenues (2)


10.7


10.1





SG&A as % gross profit


72.4


71.3





Adjusted SG&A as % gross profit (2)


71.6


70.7





Operating margin %


3.6


3.7





Adjusted operating margin % (2)


3.8


3.8
















Six Months Ended June 30,



2016


2015


% Increase/
(Decrease)


Local Currency
% Increase/
(Decrease)

REVENUES:









New vehicle retail sales


$  2,715,616


$  2,807,442


(3.3)


(1.4)

Used vehicle retail sales


1,321,197


1,280,904


3.1


4.8

Used vehicle wholesale sales


176,949


196,347


(9.9)


(8.1)

Total used


1,498,146


1,477,251


1.4


3.1

Parts and service


594,585


569,861


4.3


5.8

Finance and insurance


198,183


197,182


0.5


1.3

Total


$  5,006,530


$  5,051,736


(0.9)


0.8










GROSS MARGIN %:









New vehicle retail sales


5.2


5.1





Used vehicle retail sales


7.0


7.1





Used vehicle wholesale sales


0.9


0.9





Total used


6.3


6.3





Parts and service


53.8


54.0





Finance and insurance


100.0


100.0





Total


15.0


14.6














GROSS PROFIT:









New vehicle retail sales


$     140,528


$     142,479


(1.4)


0.9

Used vehicle retail sales


92,710


90,760


2.1


3.3

Used vehicle wholesale sales


1,582


1,744


(9.3)


(5.2)

Total used


94,292


92,504


1.9


3.1

Parts and service


319,917


307,859


3.9


5.2

Finance and insurance


198,183


197,182


0.5


1.3

Total


$     752,920


$     740,024


1.7


3.1










UNITS SOLD:









Retail new vehicles sold


77,735


82,127


(5.3)



Retail used vehicles sold


62,745


60,312


4.0



Wholesale used vehicles sold


25,996


27,900


(6.8)



Total used


88,741


88,212


0.6












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$       34,934


$       34,184


2.2


4.2

Used vehicle retail


$       21,057


$       21,238


(0.9)


0.7










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$         1,808


$         1,735


4.2


6.6

Used vehicle retail sales


1,478


1,505


(1.8)


(0.7)

Used vehicle wholesale sales


61


63


(3.2)


1.7

Total used


1,063


1,049


1.3


2.5

Finance and insurance (per retail unit)


$         1,411


$         1,384


2.0


2.7










OTHER: 









SG&A expenses


$     554,409


$     536,450


3.3


4.9

Adjusted SG&A expenses(2)


$     548,010


$     533,927


2.6


4.2

SG&A as % revenues


11.1


10.6





Adjusted SG&A as % revenues (2)


10.9


10.6





SG&A as % gross profit


73.6


72.5





Adjusted SG&A as % gross profit (2)


72.8


72.1





Operating margin %


3.5


3.6





Adjusted operating margin % (2)


3.6


3.6






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

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

 

Group 1 Automotive, Inc.

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

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended June 30,



2016


2015


% Increase/
(Decrease)

SG&A RECONCILIATION:







As reported

$  245,389


$  239,863


2.3


  Pre-tax adjustments:







   Catastrophic events 

(2,769)


(951)




   Gain (loss) on real estate and dealership transactions 

(250)


1,052




   Legal settlements 


(1,000)




  Adjusted SG&A (1)

$  242,370


$  238,964


1.4








SG&A AS % REVENUES:







Unadjusted

11.1


10.5




Adjusted (1)

11.0


10.4



SG&A AS % GROSS PROFIT:







Unadjusted

71.2


70.1




Adjusted (1)

70.3


69.8



OPERATING MARGIN %







Unadjusted

4.0


4.0




Adjusted (1), (2)

4.1


4.1



PRETAX MARGIN %:







Unadjusted

2.8


3.0




Adjusted (1), (2)

3.0


3.1










SAME STORE SG&A RECONCILIATION:







As reported

$  241,144


$  234,247


2.9


  Pre-tax adjustments:







   Catastrophic events 

(2,769)


(951)




   Gain (loss) on real estate and dealership transactions 

(250)


(364)




   Legal settlements 


(1,000)




  Adjusted Same Store SG&A (1)

$  238,125


$  231,932


2.7








SAME STORE SG&A AS % REVENUES:







Unadjusted

11.1


10.5




Adjusted (1)

11.0


10.4



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

71.3


70.1




Adjusted (1)

70.5


69.4



SAME STORE OPERATING MARGIN %







Unadjusted

3.9


4.0




Adjusted (1), (3)

4.1


4.1












 Six Months Ended June 30, 



2016


2015


% Increase/
(Decrease)

SG&A RECONCILIATION:







As reported

$  491,229


$  469,836


4.6


  Pre-tax adjustments:







   Catastrophic events 

(5,423)


(951)




   Gain (loss) on real estate and dealership transactions 

680


1,052




   Acquisition costs 

(30)





   Legal settlements 


(1,000)




  Adjusted SG&A (1)

$  486,456


$  468,937


3.7








SG&A AS % REVENUES:







Unadjusted

11.5


11.0




Adjusted (1)

11.3


10.9



SG&A AS % OF GROSS PROFIT:







Unadjusted

72.5


71.5




Adjusted (1)

71.8


71.4



OPERATING MARGIN %:







 Unadjusted 

3.8


3.9




Adjusted (1), (2)

4.0


3.9



PRETAX MARGIN %:







Unadjusted

2.6


2.9




Adjusted (1), (2)

2.8


2.9










SAME STORE SG&A RECONCILIATION:







As reported

$  479,250


$  458,591


4.5


  Pre-tax adjustments:







   Catastrophic events 

(5,423)


(951)




   Gain (loss) on real estate and dealership transactions 

(385)


(364)




   Acquisition costs 

(30)





   Legal settlements 


(1,000)




  Adjusted Same Store SG&A (1)

$  473,412


$  456,276


3.8








SAME STORE SG&A AS % REVENUES:







Unadjusted

11.5


10.9




Adjusted (1)

11.3


10.9



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

72.6


71.3




Adjusted (1)

71.8


70.9



SAME STORE OPERATING MARGIN %







Unadjusted

3.8


3.9




Adjusted (1), (3)

4.0


4.0





(1)

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

(2)

Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $1,024 and $1,534 for the three and six months ended June 30, 2016 and $498 for the three and six months ended June 30, 2015.

(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $1,024 and $1,534 for the three and six months ended June 30, 2016 and $498 for the three and six months ended June 30, 2015.

 

Group 1 Automotive, Inc.

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

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended June 30,



2016


2015


% Increase/
(Decrease)

SG&A RECONCILIATION:







As reported

$   42,109


$   26,641


58.1


  Pre-tax adjustments:







   Severance costs 


(208)




  Adjusted SG&A (1)

$   42,109


$   26,433


59.3








SG&A AS % REVENUES:







Unadjusted

9.0


8.6




Adjusted (1)

9.0


8.6



SG&A AS % GROSS PROFIT:







Unadjusted

77.5


78.5




Adjusted (1)

77.5


77.9



OPERATING MARGIN %







Unadjusted

2.2


2.0




Adjusted (1), (2)

2.2


2.1



PRETAX MARGIN %:







Unadjusted

1.7


1.6




Adjusted (1), (2)

1.7


1.6










SAME STORE SG&A RECONCILIATION:







As reported

$   27,819


$   26,653


4.4


  Pre-tax adjustments:







   Severance costs 


(208)




  Adjusted Same Store SG&A (1)

$   27,819


$   26,445


5.2








SAME STORE SG&A AS % REVENUES:







Unadjusted

8.8


8.6




Adjusted (1)

8.8


8.6



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

75.8


78.6




Adjusted (1)

75.8


78.0



SAME STORE OPERATING MARGIN %







Unadjusted

2.4


2.0




Adjusted (1), (3)

2.4


2.1












 Six Months Ended June 30, 



2016


2015


% Increase/
(Decrease)

SG&A RECONCILIATION:







As reported

$   79,545


$   53,403


49.0


  Pre-tax adjustments:







   Severance costs 


(208)




   Acquisition costs 

(561)





  Adjusted SG&A (1)

$   78,984


$   53,195


48.5








SG&A AS % REVENUES:







Unadjusted

8.8


8.8




Adjusted (1)

8.8


8.8



SG&A AS % OF GROSS PROFIT:







Unadjusted

78.7


78.4




Adjusted (1)

78.1


78.1



OPERATING MARGIN %:







Unadjusted

2.0


2.1




Adjusted (1), (2)

2.1


2.1



PRETAX MARGIN %:







Unadjusted

1.5


1.6




Adjusted (1), (2)

1.6


1.7










SAME STORE SG&A RECONCILIATION:







As reported

$   55,280


$   53,416


3.5


  Pre-tax adjustments:







   Severance costs 


(208)




   Acquisition costs 

(561)





  Adjusted Same Store SG&A (1)

$   54,719


$   53,208


2.8








SAME STORE SG&A AS % REVENUES:







Unadjusted

8.7


8.8




Adjusted (1)

8.6


8.8



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

76.0


78.5




Adjusted (1)

75.2


78.2



SAME STORE OPERATING MARGIN %







Unadjusted

2.4


2.1




Adjusted (1), (3)

2.5


2.1





(1)

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

(2)

Excludes the impact of SG&A reconciling items above.

(3)

Excludes the impact of Same Store SG&A reconciling items above.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Brazil

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended June 30,



2016


2015


% Increase/
(Decrease)

OPERATING MARGIN %







Unadjusted

(0.6)


0.3




Adjusted (1), (2)

(0.6)


0.7



PRETAX MARGIN %:







Unadjusted

(0.6)


(0.4)




Adjusted (1), (2)

(0.6)













 Six Months Ended June 30, 



2016


2015


% Increase/
(Decrease)

SG&A RECONCILIATION:







As reported

$  21,913


$  28,798


(23.9)


  Pre-tax adjustments:







   Gain (loss) on real estate and dealership transactions 

(371)





  Adjusted SG&A (1)

$  21,542


$  28,798


(25.2)








SG&A AS % REVENUES:







Unadjusted

10.8


10.8




Adjusted (1)

10.7


10.8



SG&A AS % OF GROSS PROFIT:







Unadjusted

105.2


93.8




Adjusted (1)

103.4


93.8



OPERATING MARGIN %:







Unadjusted

(1.0)


0.1




Adjusted (1), (3)

(0.6)


0.3



PRETAX MARGIN %:







Unadjusted

(1.1)


(0.5)




Adjusted (1), (3)

(0.7)


(0.3)



SAME STORE OPERATING MARGIN %







Unadjusted

(0.2)


1.4




Adjusted (1), (4)


1.4





(1)

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

(2)

Excludes the impact of non-cash asset impairment charges of $423 for the six months ended June 30, 2016 and $541 for the three and six months ended June 30, 2015.

(3)

Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $423 for the six months ended June 30, 2016 and $541 for the three and six months ended June 30, 2015.

(4)

Excludes the impact of Same Store non-cash asset impairment charges of $423 for the six months ended June 30, 2016.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - CONSOLIDATED

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended June 30,



2016


2015


% Increase/
(Decrease)








NET INCOME RECONCILIATION:







As reported

$    46,580


$    46,310


0.6


  Pre-tax adjustments:







   Catastrophic events 







   Pre-tax 

2,769


951




   Tax impact 

(1,042)


(359)




   (Gain) loss on real estate and dealership transactions 







   Pre-tax 

250


(1,052)




   Tax impact 

(94)


452




   Severance costs 







   Pre-tax 


208




   Tax impact 


(41)




   Legal settlements 







   Pre-tax 


1,000




   Tax impact 


(390)




   Non-cash asset impairment 







   Pre-tax 

1,024


1,039




   Tax impact 

(391)


(191)




   Foreign deferred income tax benefit 







   Tax impact 

(1,686)





  Adjusted net income (1)

$    47,410


$    47,927


(1.1)








ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED







COMMON SHARES RECONCILIATION:







Adjusted net income (1)

$    47,410


$    47,927


(1.1)


Less: Adjusted earnings allocated to participating securities

1,918


1,855


3.4


Adjusted net income available to diluted common shares (1)

$    45,492


$    46,072


(1.3)








 DILUTED INCOME PER COMMON SHARE RECONCILIATION: 






As reported

$        2.12


$        1.91


11.0


  Pre-tax adjustments:







   Catastrophic events 

0.08


0.02




   Gain (loss) on real estate and dealership transactions 

0.01


(0.03)




   Severance costs 


0.01




   Legal settlements 


0.03




   Non-cash asset impairment 

0.03


0.04




   Foreign deferred income tax benefit 

(0.08)





  Adjusted diluted income per share (1)

$        2.16


$        1.98


9.1








SG&A RECONCILIATION:







As reported

$  299,022


$  280,567


6.6


  Pre-tax adjustments:







   Catastrophic events 

(2,769)


(951)




   Gain (loss) on real estate and dealership transactions 

(250)


1,052




   Severance costs 


(208)




   Legal settlements 


(1,000)




  Adjusted SG&A (1)

$  296,003


$  279,460


5.9








SG&A AS % REVENUES:







Unadjusted

10.7


10.3




Adjusted (1)

10.6


10.2



SG&A AS % GROSS PROFIT:







Unadjusted

72.9


71.7




Adjusted (1)

72.2


71.4



OPERATING MARGIN %







Unadjusted

3.5


3.6




Adjusted (1), (2)

3.6


3.7



PRETAX MARGIN %:







Unadjusted

2.5


2.7




Adjusted (1), (2)

2.6


2.8










SAME STORE SG&A RECONCILIATION:







As reported

$  279,082


$  272,567


2.4


  Pre-tax adjustments:







   Catastrophic events 

(2,769)


(951)




   Loss on real estate and dealership transactions 

(250)


(364)




   Severance costs 


(208)




   Legal settlements 


(1,000)




  Adjusted Same Store SG&A (1)

$  276,063


$  270,044


2.2








SAME STORE SG&A AS % REVENUES:







Unadjusted

10.8


10.2




Adjusted (1)

10.7


10.1



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

72.4


71.3




Adjusted (1)

71.6


70.7



SAME STORE OPERATING MARGIN %







Unadjusted

3.6


3.7




Adjusted (1), (3)

3.8


3.8












 Six Months Ended June 30, 



2016


2015


% Increase/
(Decrease)

NET INCOME RECONCILIATION:







As reported

$    80,871


$    82,124


(1.5)


  Pre-tax adjustments:







   Catastrophic events 







   Pre-tax 

5,423


951




   Tax impact 

(2,038)


(359)




   (Gain) loss on real estate and dealership transactions 







   Pre-tax 

113


(1,052)




   Tax impact 

255


452




   Severance costs 







   Pre-tax 


208




   Tax impact 


(41)




   Acquisition costs  







   Pre-tax 

591





   Tax impact 

(11)





   Legal settlements 







   Pre-tax 


1,000




   Tax impact 


(390)




   Non-cash asset impairment 







   Pre-tax 

1,533


1,039




   Tax impact 

(586)


(191)




   Foreign deferred income tax benefit 







   Tax impact 

(1,686)





  Adjusted net income (1)

$    84,465


$    83,741


0.9








ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED







COMMON SHARES RECONCILIATION:







Adjusted net income (1)

$    84,465


$    83,741


0.9


Less: Adjusted earnings allocated to participating securities

3,367


3,238


4.0


Adjusted net income available to diluted common shares (1)

$    81,098


$    80,503


0.7








 DILUTED INCOME PER COMMON SHARE RECONCILIATION: 






As reported

$        3.57


$        3.38


5.6


  Pre-tax adjustments:







   Catastrophic events 

0.15


0.02




   Gain (loss) on real estate and dealership transactions 

0.02


(0.02)




   Severance costs 


0.01




   Acquisition costs  

0.02





   Legal settlements 


0.02




   Non-cash asset impairment 

0.04


0.03




   Foreign deferred income tax benefit 

(0.07)





  Adjusted diluted income per share (1)

$        3.73


$        3.44


8.4















SG&A RECONCILIATION:







As reported

$  592,687


$  552,037


7.4


  Pre-tax adjustments:







   Catastrophic events 

(5,423)


(951)




   Gain (loss) on real estate and dealership transactions 

310


1,052




   Severance costs 


(208)




   Acquisition costs 

(591)





   Legal settlements 


(1,000)




  Adjusted SG&A (1)

$  586,983


$  550,930


6.5








SG&A AS % REVENUES:







Unadjusted

11.0


10.7




Adjusted (1)

10.9


10.7



SG&A AS % OF GROSS PROFIT:







Unadjusted

74.2


73.1




Adjusted (1)

73.4


72.9



OPERATING MARGIN %:







Unadjusted

3.3


3.5




Adjusted (1), (2)

3.5


3.5



PRETAX MARGIN %:







Unadjusted

2.3


2.5




Adjusted (1), (2)

2.4


2.6










SAME STORE SG&A RECONCILIATION:







As reported

$  554,409


$  536,450


3.3


  Pre-tax adjustments:







   Catastrophic events 

(5,423)


(951)




   Gain (loss) on real estate and dealership transactions 

(385)


(364)




   Severance costs 


(208)




   Acquisition costs 

(591)





   Legal settlements 


(1,000)




  Adjusted Same Store SG&A (1)

$  548,010


$  533,927


2.6








SAME STORE SG&A AS % REVENUES:







Unadjusted

11.1


10.6




Adjusted (1)

10.9


10.6



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

73.6


72.5




Adjusted (1)

72.8


72.1



SAME STORE OPERATING MARGIN %







Unadjusted

3.5


3.6




Adjusted (1), (3)

3.6


3.6





(1)

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

(2)

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

(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $1,024 and $1,956 for the three and six months ended June 30, 2016 and $498 for the three and six months ended June 30, 2015.

 

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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/group-1-automotive-reports-second-quarter-2016-results-300305243.html

SOURCE Group 1 Automotive, Inc.

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