Group 1 Automotive Announces Second Quarter 2018 Financial Results

Group 1 Automotive Announces Second Quarter 2018 Financial Results

Record Results Driven by Company-Wide Focus on Used Vehicles and Strong Cost Control

PR Newswire

HOUSTON, July 26, 2018 /PRNewswire/ -- Group 1 Automotive, Inc. GPI, ("Group 1" or the "Company"), an international, Fortune 500 automotive retailer, today reported 2018 second quarter net income of $56.5 million, diluted earnings per common share of $2.72, adjusted net income (a non-GAAP measure) of $50.8 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $2.45.

Second quarter 2018 adjusted net income and diluted earnings per share exclude approximately $5.7 million net after-tax adjustments, or $0.27 per common share. These adjustments consisted of a net gain on real estate and dealership transactions, which was approximately $15.2 million, or $0.73 per common share, partially offset by the impact of catastrophic events of $4.4 million, or $0.21 per common share; non-cash asset impairments of $3.2 million, or $0.15 per common share; and legal settlements of approximately $2.0 million, or $0.10 per common share.

"We delivered a solid quarter, reflecting a relatively strong U.S. vehicle market in June, favorable overall performance in the U.K., a corporate-wide focus on our used vehicle business, and a major cost reduction initiative in both the U.S. and the U.K. early this year that began to pay dividends this quarter," said Earl J. Hesterberg, Group 1's president and chief executive officer. "These results demonstrate our ability to grow earnings in a flat retail sales environment. In addition, during the quarter, the Company has launched a renewed focus on capital deployment, with an emphasis on actions, such as disposal of underperforming assets, more stringent control of capital expenditures, and enhanced share repurchases, targeted at delivering improved shareholder value. Actions taken this quarter include the disposal of a large underperforming dealership and a stepped-up pace of share repurchases."

Consolidated Results for Second Quarter 2018 (year-over-year comparable basis)

For ease of comparison, we have included constant currency metrics (a non-GAAP measure) both below (shown in parenthesis) and in the financial tables that follow:

  • Total revenue grew 10.2 percent (9.2 percent) to $2.9 billion.
  • Total gross profit grew 8.2 percent (7.5 percent), to $438.2 million.
  • New vehicle revenues increased 7.4 percent (6.6 percent) on 6.3 percent higher unit sales. New vehicle gross profit improved 2.2 percent (1.8 percent), to $76.6 million.
  • Retail used vehicle revenues increased 19.8 percent (18.4 percent) on 18.8 percent higher unit sales. Retail used vehicle gross profit increased 14.0 percent (12.7 percent), to $51.2 million. Total used vehicle gross profit was up 15.3 percent (14.1 percent), to $51.5 million. In the U.S., the Val-u-Line initiative the Company launched last quarter has continued to build momentum, with Same Store used retail unit sales increasing 11 percent, and Val-u-Line units growing to 10 percent of the mix.
  • Parts and service gross profit increased 9.1 percent (8.3 percent) on revenue growth of 8.0 percent (7.4 percent). Same Store parts and service gross profit increased 3.2 percent (2.7 percent) on Same Store parts and service revenue growth of 2.4 percent (2.0 percent).
  • Finance and Insurance (F&I) gross profit per retail unit (PRU) decreased 3.4 percent (decreased 3.9 percent), to $1,412 and total F&I gross profit increased $8.6 million, or 8.1 percent (7.5 percent).
  • Selling, General and Administrative (SG&A) expenses as a percent of gross profit improved 340 basis points, to 70.3 percent. Adjusted Same Store SG&A as a percent of gross profit improved 110 basis points, to 72.3 percent, reflecting strong improvements in all three of our markets.
  • Provision for income taxes declined 17.0 percent, to $18.7 million, or to approximately 24.9 percent of income before income taxes, primarily reflecting the impact of the U.S. Tax Reform Bill that reduced the U.S. corporate income tax rate.

Segment Results for Second Quarter 2018 (year-over-year comparable basis)

  • United States:



    The Company's U.S. operations accounted for 73.7 percent of total revenues and 80.0 percent of total gross profit. Total U.S. revenues were $2.2 billion, an increase of 2.1 percent, driven by increases in used retail (up 10.4 percent), F&I revenue (up 3.1 percent), and parts and service (up 2.2 percent). F&I gross profit PRU decreased $33, or 2.0 percent per unit, to $1,655; and total gross profit grew 3.0 percent, to $350.7 million.



    "We were pleased with our used car performance and cost control in the U.S. in the second quarter. Same Store used vehicle retail unit sales were up 11 percent and total used vehicle gross profit increased six percent. Total Same Store gross profit increased one percent, which when coupled with strong cost control, evidenced by adjusted SG&A leverage of 110 basis points, drove improved bottom-line results. Same Store adjusted operating income increased five percent and adjusted operating margin improved 20 basis points to 4.2 percent," said Daryl Kenningham, Group 1's president of U.S. operations.



    New vehicle retail gross profit PRU was roughly flat with a slight increase of $4, to $1,855. Total used vehicle gross profit PRU increased $69, to $1,128, reflecting the impact of the used vehicle initiatives we launched last quarter, which drove a shift of over 2,000 units from low-margin wholesale to higher margin retail sales.



    SG&A expenses as a percent of gross profit improved 480 basis points, to 66.8 percent; and operating margin increased 60 basis points, to 4.6 percent. Adjusted SG&A expenses as a percent of gross profit improved 110 basis points, to 70.3 percent.

 

  • United Kingdom



    The Company's U.K. operations accounted for 22.7 percent of total revenues and 17.1 percent of total gross profit. Total U.K. revenues increased 52.6 percent (43.6 percent), to $666.9 million, driven by double-digit revenue growth across each business segment. Same Store U.K. revenues grew 13.6 percent (6.9 percent), to $493.1 million, and new vehicle units sold increased 7.2 percent, despite the industry growing only 2.4 percent. Total gross profit increased 46.9 percent (38.3 percent), to $74.8 million, with Same Store gross profit increasing 12.6 percent (6.1 percent), to $57.1 million. This growth was driven by strong improvements of 16.8 percent (10 percent) in Same Store parts and service gross profit, as well as double-digit growth in F&I and used retail gross.



    SG&A expenses as a percent of gross profit improved 20 basis points, to 83.2 percent; and operating margin decreased 10 basis points, to 1.4 percent. Adjusted Same Store SG&A expenses as a percent of gross profit improved 140 basis points, to 81.1 percent; and Same Store operating margin increased 10 basis points, to 1.7 percent.

 

  • Brazil:



    The Company's Brazilian operations were approximately breakeven during the second quarter and accounted for 3.6 percent of total revenues and 2.9 percent of total gross profit as a trucking strike in May negatively impacted results. The Company's Same Store new vehicle revenue grew 1.7 percent on a constant currency basis, with units down 5.4 percent. On a Same Store constant currency basis, total revenues grew 5.0 percent, driven by revenue growth of the aforementioned 1.7 percent in new vehicles, 16.5 percent in total used vehicles, 2.7 percent in parts & service, and 5.1 percent in F&I.



    SG&A expenses as a percent of gross profit increased 10 basis points, to 91.1 percent. Adjusted Same Store SG&A expenses as a percent of gross profit decreased 280 basis points, to 86.6 percent.

Share Repurchase Authorization

During the second quarter of 2018, the Company repurchased 610,752 shares at an average price per common share of $68.90, for a total of $42.1 million. In July 2018, the Company repurchased an additional 367,773 shares at an average price per common share of $67.98, for a total of $25.0 million. Year-to-date through July 25, 2018, the Company has repurchased 1,114,130 shares at an average price per common share of $68.46, for a total of $76.3 million. These repurchases represent approximately 5.5 percent of the Company's share float at the beginning of the year. As of July 25, 2018, the Company has $73.4 million remaining on its Board authorized common stock share repurchase program.

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, and subject to Board approval and covenant restrictions.

Corporate Development

As previously announced, the Company acquired Toyota Alpha Trevo Automóveis Ltda in western São Paulo, Brazil in April 2018, which will operate as T-Drive Toyota Alphaville, and is expected to generate approximately $45 million in annualized revenues. This acquisition provides the opportunity to both increase scale in a growing market and further expand the Company's Toyota presence with additional open points to be announced at a future date. Additionally, the Company is pleased to announce the relocation of Honda São Bernardo do Campo to a new facility. The facility is owned by the Company and will enable significant uplift in new, used and aftersales business.

In June 2018, the Company disposed of 3 franchises, which included a BMW franchise in Kentish Town in the U.K., as well as a Mercedes-Benz franchise and Sprinter franchise in Escondido, California. These three stores generated approximately $115 million in trailing-twelve-month revenues.

Year-to-date 2018, the Company has acquired a total of 12 franchises, which are expected to generate an estimated $405 million in annual revenues; and the Company has disposed of three aforementioned franchises.

Second Quarter 2018 Earnings Conference Call Details

Group 1'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:

4003183

A telephonic replay will be available following the call through August 2, 2018 by dialing:

Domestic:

1-877-344-7529

International:

1-412-317-0088

Replay ID:

10122294

ABOUT GROUP 1 AUTOMOTIVE, INC.

Group 1 owns and operates 180 automotive dealerships, 236 franchises, and 48 collision centers in the United States, the United Kingdom and Brazil that offer 32 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service contracts; provides automotive maintenance and repair services; and sells vehicle parts.

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

FORWARD-LOOKING STATEMENTS

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

NON-GAAP FINANCIAL MEASURES

In addition to evaluating the financial condition and results of our operations in accordance with GAAP, from time to time our management evaluates and analyzes results and any impact on the Company of strategic decisions and actions relating to, among other things, cost reduction, growth, and profitability improvement initiatives, and other events outside of normal, or "core," business and operations, by considering alternative financial measures not prepared in accordance with GAAP. This includes evaluating measures such as adjusted selling, general and administrative expenses, adjusted net income and adjusted diluted earnings per share. These adjusted measures are not measures of financial performance under U.S. GAAP, but are instead considered non-GAAP financial performance measures. Non-GAAP measures do not have definitions under GAAP and may be defined differently by and not be comparable to similarly titled measures used by other companies. As a result, any non-GAAP financial measures considered and evaluated by management are reviewed in conjunction with a review of the most directly comparable measures calculated in accordance with GAAP. We caution investors not to place undue reliance on such non-GAAP measures, but also to consider them with the most directly comparable GAAP measures. In our evaluation of results from time to time, we exclude items that do not arise directly from core operations, such as non-cash asset impairment charges, gains and losses on dealership franchise or real estate transactions, and catastrophic weather events such as hail storms, hurricanes, and snow storms. Because these non-core charges and gains materially affect the Company's financial condition or results in the specific period in which they are recognized, management also evaluates, and makes resource allocation and performance evaluation decisions based on, the related non-GAAP measures excluding such items.

In addition to using such non-GAAP measures to evaluate results in a specific period, management believes that such measures may provide more complete and consistent comparisons of operational performance on a period-over-period historical basis and a better indication of expected future trends. Our management also uses these adjusted measures in conjunction with U.S. GAAP financial measures to assess our business, including communication with our Board of Directors, investors and industry analysts concerning financial performance. We disclose these non-GAAP measures, and the related reconciliations, because we believe investors use these metrics in evaluating longer-term period-over-period performance, and to allow investors to better understand and evaluate the information used by management to assess operating performance. The exclusion of certain expenses in the calculation of non-GAAP financial measures should not be construed as an inference that these costs are unusual or infrequent. We anticipate excluding these expenses in the future presentation of our non-GAAP financial measures.

In addition, we evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our underlying business and results of operations, consistent with how we evaluate our performance. We calculate constant currency percentages by converting our current period reported results for entities reporting in currencies other than United States dollars using comparative period exchange rates rather than the actual exchange rates in effect during the respective periods. The constant currency performance measures should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with U.S. GAAP.

Investor contacts:

Sheila Roth

Manager, Investor Relations

Group 1 Automotive, Inc.

713-647-5741 | sroth@group1auto.com

Media contacts:

Pete DeLongchamps

Senior Vice President, 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, 



2018



2017



% Increase/

(Decrease)

REVENUES:











New vehicle retail sales

$ 1,555,570



$ 1,448,768



7.4

Used vehicle retail sales

821,853



685,949



19.8

Used vehicle wholesale sales

92,854



99,377



(6.6)

Parts and service

358,129



331,631



8.0

Finance, insurance and other, net

115,056



106,470



8.1

 Total revenues 

2,943,462



2,672,195



10.2













COST OF SALES:











New vehicle retail sales

1,478,988



1,373,857



7.7

Used vehicle retail sales

770,639



641,036



20.2

Used vehicle wholesale sales

92,613



99,644



(7.1)

Parts and service

163,059



152,766



6.7

 Total cost of sales 

2,505,299



2,267,303



10.5













GROSS PROFIT

438,163



404,892



8.2













SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

308,092



298,568



3.2













DEPRECIATION AND AMORTIZATION EXPENSE

16,638



14,093



18.1













ASSET IMPAIRMENTS

4,268



-



100.0













OPERATING INCOME

109,165



92,231



18.4













OTHER EXPENSE:











Floorplan interest expense

(14,563)



(13,226)



10.1

Other interest expense, net

(19,414)



(17,315)



12.1

INCOME BEFORE INCOME TAXES

75,188



61,690



21.9













PROVISION FOR INCOME TAXES

(18,725)



(22,557)



(17.0)













NET INCOME 

$      56,463



$      39,133



44.3

Less: Earnings allocated to participating securities

$        1,916



$        1,389



37.9

Earnings available to diluted common shares

$      54,547



$      37,744



44.5

DILUTED EARNINGS PER SHARE

$          2.72



$          1.84



47.8

Weighted average dilutive common shares outstanding

20,046



20,522



(2.3)

Weighted average participating securities

708



761



(7.0)

Total weighted average shares outstanding

20,754



21,283



(2.5)















 Six Months Ended June 30, 



2018



2017



% Increase/

(Decrease)

REVENUES:











New vehicle retail sales

$ 3,069,160



$ 2,785,981



10.2

Used vehicle retail sales

1,602,423



1,346,876



19.0

Used vehicle wholesale sales

196,883



203,534



(3.3)

Parts and service

707,644



651,329



8.6

Finance, insurance and other, net

227,378



203,304



11.8

 Total revenues 

5,803,488



5,191,024



11.8













COST OF SALES:











New vehicle retail sales

2,917,151



2,641,843



10.4

Used vehicle retail sales

1,507,714



1,256,958



19.9

Used vehicle wholesale sales

194,987



203,701



(4.3)

Parts and service

325,710



300,108



8.5

 Total cost of sales 

4,945,562



4,402,610



12.3













GROSS PROFIT

857,926



788,414



8.8













SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

632,439



588,347



7.5













DEPRECIATION AND AMORTIZATION EXPENSE

32,980



27,699



19.1













ASSET IMPAIRMENTS

4,268



-



100.0













OPERATING INCOME

188,239



172,368



9.2













OTHER EXPENSE:











Floorplan interest expense

(28,650)



(25,168)



13.8

Other interest expense, net

(38,234)



(34,314)



11.4

INCOME BEFORE INCOME TAXES

121,355



112,886



7.5













PROVISION FOR INCOME TAXES

(29,078)



(39,814)



(27.0)













NET INCOME

$      92,277



$      73,072



26.3

Less: Earnings allocated to participating securities

$        3,123



$        2,645



18.1

Earnings available to diluted common shares

$      89,154



$      70,427



26.6

DILUTED EARNINGS PER SHARE

$          4.42



$          3.42



29.2

Weighted average dilutive common shares outstanding

20,176



20,609



(2.1)

Weighted average participating securities

712



789



(9.8)

Total weighted average shares outstanding

20,888



21,398



(2.4)

 

Group 1 Automotive, Inc.

Consolidated Balance Sheets

(Unaudited)

(Dollars in thousands)















June 30, 2018



December 31,

2017



% Increase/

(Decrease)

 ASSETS: 











 CURRENT ASSETS: 











 Cash and cash equivalents 

$           41,575



$          28,787



44.4

 Contracts in transit and vehicle receivables, net 

249,706



306,433



(18.5)

 Accounts and notes receivable, net 

178,339



188,611



(5.4)

 Inventories, net 

1,721,249



1,763,293



(2.4)

 Prepaid expenses and other current assets 

80,957



42,062



92.5

 Total current assets 

2,271,826



2,329,186



(2.5)

 PROPERTY AND EQUIPMENT, net 

1,348,521



1,318,959



2.2

 GOODWILL AND INTANGIBLE FRANCHISE RIGHTS 

1,233,201



1,198,666



2.9

 OTHER ASSETS 

33,194



24,254



36.9

 Total assets 

$      4,886,742



$     4,871,065



0.3













 LIABILITIES AND STOCKHOLDERS' EQUITY: 











 CURRENT LIABILITIES: 











 Floorplan notes payable - credit facility and other 

$      1,147,892



$     1,240,695



(7.5)

 Offset account related to floorplan notes payable - credit facility 

(119,562)



(86,547)



38.1

 Floorplan notes payable - manufacturer affiliates 

404,233



397,183



1.8

 Offset account related to floorplan notes payable - manufacturer affiliates 

(24,500)



(22,500)



8.9

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

76,412



77,609



(1.5)

 Current liabilities from interest rate risk management activities 

682



1,996



(65.8)

 Accounts payable 

442,577



412,981



7.2

 Accrued expenses 

189,027



177,070



6.8

 Total current liabilities 

2,116,761



2,198,487



(3.7)

 5.00% SENIOR NOTES (principal of $550,000 at June 30, 2018 and December 31, 2017, respectively) 

542,888



542,063



0.2

 5.25% SENIOR NOTES (principal of $300,000 at June 30, 2018 and December 31, 2017, respectively) 

296,440



296,151



0.1

 ACQUISITION LINE 

39,636



26,988



46.9

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

419,424



405,950



3.3

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

59,610



47,032



26.7

 DEFERRED INCOME TAXES 

138,478



124,404



11.3

 LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES 

1,597



8,583



(81.4)

 OTHER LIABILITIES 

99,296



97,125



2.2

 STOCKHOLDERS' EQUITY: 











 Common stock 

255



255



-

 Additional paid-in capital 

288,492



291,461



(1.0)

 Retained earnings 

1,339,185



1,246,323



7.5

 Accumulated other comprehensive loss 

(126,358)



(123,226)



2.5

 Treasury stock 

(328,962)



(290,531)



13.2

 Total stockholders' equity 

1,172,612



1,124,282



4.3

 Total liabilities and stockholders' equity 

$      4,886,742



$     4,871,065



0.3

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)























Three Months Ended



Six Months Ended





June 30,



June 30,





2018 (%)



2017 (%)



2018 (%)



2017 (%)

NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:















Region

Geographic Market















United States

Texas

35.2



36.6



35.4



35.6



California

6.4



7.9



6.5



7.9



Oklahoma

5.9



6.5



5.9



6.5



Massachusetts

4.7



4.9



4.7



4.7



Georgia

4.4



4.8



4.3



4.7



Florida

2.5



2.5



2.5



2.5



Louisiana

1.9



1.9



1.8



2.0



New Hampshire

1.8



2.3



1.8



2.0



New Jersey

1.7



1.9



1.6



1.7



South Carolina

1.6



1.5



1.6



1.4



Kansas

1.3



1.8



1.3



1.7



Mississippi

1.2



1.3



1.2



1.4



Alabama

0.6



1.1



0.6



1.1



Maryland

0.5



0.4



0.5



0.4



New Mexico 

0.2





0.1







69.9



75.4



69.8



73.6



















International

United Kingdom

25.1



19.3



25.2



21.4



Brazil

5.0



5.3



5.0



5.0





100.0



100.0



100.0



100.0



















NEW VEHICLE UNIT SALES BRAND MIX:















Toyota/Lexus

23.9



25.4



24.0



24.4

Volkswagen/Audi/Porsche

13.6



12.3



13.6



12.4

BMW/MINI

12.2



13.1



12.4



13.7

Ford/Lincoln

11.0



11.3



11.2



12.1

Honda/Acura

8.9



9.6



9.2



9.3

Nissan

6.0



7.6



6.4



7.9

Chevrolet/GMC/Buick/Cadillac

5.7



5.9



5.8



6.3

Mercedes-Benz/smart/Sprinter

5.4



4.2



5.0



4.1

Chrysler/Dodge/Jeep/RAM

4.1



4.1



4.1



3.9

Hyundai/Kia

3.8



4.3



3.9



3.9

Jaguar/Land Rover

1.9



0.4



1.9



0.4

Other

3.5



1.8



2.5



1.6





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 June 30,



2018



2017



% Increase/

(Decrease)

REVENUES:











New vehicle retail sales

$ 1,146,882



$ 1,143,771



0.3

Used vehicle retail sales

592,007



536,193



10.4

Used vehicle wholesale sales

42,781



66,476



(35.6)

Total used

634,788



602,669



5.3

Parts and service

288,889



282,698



2.2

Finance, insurance and other, net

97,442



94,552



3.1

Total

$ 2,168,001



$ 2,123,690



2.1













GROSS MARGIN %:











New vehicle retail sales

4.9



5.0





Used vehicle retail sales

6.6



6.8





Used vehicle wholesale sales

3.6



0.4





Total used

6.4



6.1





Parts and service

54.2



53.8





Finance, insurance and other, net

100.0



100.0





Total

16.2



16.0

















GROSS PROFIT:











New vehicle retail sales

$      56,358



$      57,000



(1.1)

Used vehicle retail sales

38,809



36,704



5.7

Used vehicle wholesale sales

1,553



246



531.3

Total used

40,362



36,950



9.2

Parts and service

156,508



151,971



3.0

Finance, insurance and other, net

97,442



94,552



3.1

Total 

$    350,670



$    340,473



3.0













UNITS SOLD:











Retail new vehicles sold

30,388



30,802



(1.3)

Retail used vehicles sold

28,484



25,202



13.0

Wholesale used vehicles sold

7,292



9,701



(24.8)

Total used

35,776



34,903



2.5













AVERAGE RETAIL SALES PRICE:











New vehicle retail

$      37,741



$      37,133



1.6

Used vehicle retail

$      20,784



$      21,276



(2.3)













GROSS PROFIT PER UNIT SOLD:











New vehicle retail sales

$        1,855



$        1,851



0.2

Used vehicle retail sales

1,362



1,456



(6.5)

Used vehicle wholesale sales

213



25



752.0

Total used

1,128



1,059



6.5

Finance, insurance and other, net (per retail unit)

$        1,655



$        1,688



(2.0)













OTHER: 











SG&A expenses

$    234,279



$    243,844



(3.9)

Adjusted SG&A expenses(1)

$    246,586



$    243,201



1.4

SG&A as % revenues

10.8



11.5





Adjusted SG&A as % revenues(1)

11.4



11.5





SG&A as % gross profit

66.8



71.6





Adjusted SG&A as % gross profit(1)

70.3



71.4





Operating margin %

4.6



4.0





Adjusted operating margin %(1)

4.2



4.0





Pretax margin %

3.2



2.6





Adjusted pretax margin % (1)

2.8



2.7

















INTEREST EXPENSE:











Floorplan interest expense

$    (12,809)



$    (12,062)



6.2

Floorplan assistance

11,206



11,452



(2.1)

Net floorplan expense

$      (1,603)



$         (610)



162.8

Other interest expense, net

$    (17,332)



$    (16,572)



4.6















Six Months Ended June 30,



2018



2017



% Increase/

(Decrease)

REVENUES:











New vehicle retail sales

$ 2,236,835



$ 2,162,020



3.5

Used vehicle retail sales

1,155,837



1,058,140



9.2

Used vehicle wholesale sales

96,783



137,021



(29.4)

Total used

1,252,620



1,195,161



4.8

Parts and service

573,403



553,857



3.5

Finance, insurance and other, net

193,629



180,371



7.4

Total 

$ 4,256,487



$ 4,091,409



4.0













GROSS MARGIN %:











New vehicle retail sales

4.9



5.0





Used vehicle retail sales

6.3



7.1





Used vehicle wholesale sales

3.1



(0.1)





Total used

6.0



6.2





Parts and service

53.7



53.8





Finance, insurance and other, net

100.0



100.0





Total

16.1



16.2

















GROSS PROFIT:











New vehicle retail sales

$    109,493



$    108,209



1.2

Used vehicle retail sales

72,294



74,636



(3.1)

Used vehicle wholesale sales

2,987



(116)



2675.0

Total used

75,281



74,520



1.0

Parts and service

307,952



297,969



3.4

Finance, insurance and other, net

193,629



180,371



7.4

Total 

$    686,355



$    661,069



3.8













UNITS SOLD:











Retail new vehicles sold

59,061



58,300



1.3

Retail used vehicles sold

55,794



50,131



11.3

Wholesale used vehicles sold

16,675



19,682



(15.3)

Total used

72,469



69,813



3.8













AVERAGE RETAIL SALES PRICE:











New vehicle retail

$      37,873



$      37,084



2.1

Used vehicle retail

$      20,716



$      21,107



(1.9)













GROSS PROFIT PER UNIT SOLD:











New vehicle retail sales

$        1,854



$        1,856



(0.1)

Used vehicle retail sales

1,296



1,489



(13.0)

Used vehicle wholesale sales

179



(6)



3083.3

Total used

1,039



1,067



(2.6)

Finance, insurance and other, net (per retail unit)

$        1,686



$        1,663



1.4













OTHER: 











SG&A expenses

$    487,220



$    480,117



1.5

Adjusted SG&A expenses(1)

$    499,527



$    481,307



3.8

SG&A as % revenues

11.4



11.7





Adjusted SG&A as % revenues (1)

11.7



11.8





SG&A as % gross profit

71.0



72.6





Adjusted SG&A as % gross profit (1)

72.8



72.8





Operating margin %

4.0



3.8





Adjusted operating margin %(1)

3.8



3.8





Pretax margin %

2.6



2.5





Adjusted pretax margin %(1)

2.4



2.5

















INTEREST EXPENSE:











Floorplan interest expense

$    (25,146)



$    (22,940)



9.6

Floorplan assistance

21,956



21,736



1.0

Net floorplan expense

$      (3,190)



$      (1,204)



165.0

Other interest expense, net

$    (34,348)



$    (32,844)



4.6













(1)See the section of this release entitled "Non-GAAP Financial Measures" and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.

 

Group 1 Automotive, Inc.

Additional Information - U.K.

(Unaudited)

(Dollars in thousands, except per unit amounts)



















Three Months Ended June 30,



2018



2017



% Increase/

(Decrease)



Constant Currency (1)

% Increase/ (Decrease)

REVENUES:















New vehicle retail sales

$       338,635



$   231,415



46.3



37.7

Used vehicle retail sales

208,108



128,406



62.1



52.4

Used vehicle wholesale sales

46,527



30,448



52.8



43.7

Total used

254,635



158,854



60.3



50.7

Parts and service

57,996



37,050



56.5



47.3

Finance, insurance and other, net

15,617



9,784



59.6



50.7

Total

$       666,883



$   437,103



52.6



43.6

















GROSS MARGIN %:















New vehicle retail sales

4.7



5.9









Used vehicle retail sales

5.3



5.2









Used vehicle wholesale sales

(3.0)



(2.3)









Total used

3.8



3.8









Parts and service

57.9



57.9









Finance, insurance and other, net

100.0



100.0









Total

11.2



11.7

























GROSS PROFIT:















New vehicle retail sales

$         15,907



$     13,744



15.7



9.5

Used vehicle retail sales

11,103



6,679



66.2



55.2

Used vehicle wholesale sales

(1,378)



(715)



(92.7)



(82.7)

Total used

9,725



5,964



63.1



51.9

Parts and service

33,555



21,440



56.5



47.4

Finance, insurance and other, net

15,617



9,784



59.6



50.7

Total 

$         74,804



$     50,932



46.9



38.3

















UNITS SOLD:















Retail new vehicles sold

10,914



7,894



38.3





Retail used vehicles sold

8,501



5,813



46.2





Wholesale used vehicles sold

5,955



4,137



43.9





Total used

14,456



9,950



45.3





















AVERAGE RETAIL SALES PRICE:















New vehicle retail

$         31,028



$     29,315



5.8



(0.4)

Used vehicle retail

$         24,480



$     22,089



10.8



4.2

















GROSS PROFIT PER UNIT SOLD:















New vehicle retail sales

$           1,457



$       1,741



(16.3)



(20.8)

Used vehicle retail sales

1,306



1,149



13.7



6.1

Used vehicle wholesale sales

(231)



(173)



(33.5)



(26.9)

Total used

673



599



12.4



4.5

Finance, insurance and other, net (per retail unit)

$              804



$          714



12.6



6.4

















OTHER: 















SG&A expenses

$         62,258



$     42,456



46.6



37.8

Adjusted SG&A expenses(1)

$         62,258



$     42,168



47.6



38.7

SG&A as % revenues

9.3



9.7









Adjusted SG&A as % revenues (1)

9.3



9.6









SG&A as % gross profit

83.2



83.4









Adjusted SG&A as % gross profit (1)

83.2



82.8









Operating margin %

1.4



1.5









Adjusted operating margin % (1)

1.4



1.6









Pretax margin %

0.9



1.1









Adjusted pretax margin % (1)

0.9



1.2

























INTEREST EXPENSE:















Floorplan interest expense

$         (1,617)



$      (1,053)



53.6



44.3

Floorplan assistance

240



220



9.1



2.8

Net floorplan expense

$         (1,377)



$         (833)



65.3



55.2

Other interest expense, net

$         (1,790)



$         (684)



161.7



144.4



































Six Months Ended June 30,



2018



2017



% Increase/

(Decrease)



Constant Currency (1)

% Increase/ (Decrease)

REVENUES:















New vehicle retail sales

$       693,039



$   490,055



41.4



29.1

Used vehicle retail sales

400,657



243,775



64.4



50.6

Used vehicle wholesale sales

92,712



60,957



52.1



39.1

Total used

493,369



304,732



61.9



48.3

Parts and service

111,137



73,831



50.5



37.8

Finance, insurance and other, net

29,880



18,812



58.8



45.6

Total 

$    1,327,425



$   887,430



49.6



36.7

















GROSS MARGIN %:















New vehicle retail sales

5.0



5.7









Used vehicle retail sales

4.9



5.0









Used vehicle wholesale sales

(1.4)



(0.8)









Total used

3.7



3.8









Parts and service

57.2



57.8









Finance, insurance and other, net

100.0



100.0









Total

11.0



11.4

























GROSS PROFIT:















New vehicle retail sales

$         34,418



$     28,145



22.3



11.8

Used vehicle retail sales

19,663



12,108



62.4



48.4

Used vehicle wholesale sales

(1,308)



(504)



(159.5)



(150.8)

Total used

18,355



11,604



58.2



44.0

Parts and service

63,602



42,665



49.1



36.6

Finance, insurance and other, net

29,880



18,812



58.8



45.6

Total 

$       146,255



$   101,226



44.5



32.2

















UNITS SOLD:















Retail new vehicles sold

21,364



16,912



26.3





Retail used vehicles sold

16,336



11,424



43.0





Wholesale used vehicles sold

11,542



8,306



39.0





Total used

27,878



19,730



41.3





















AVERAGE RETAIL SALES PRICE:















New vehicle retail

$         32,440



$     28,977



12.0



2.2

Used vehicle retail

$         24,526



$     21,339



14.9



5.3

















GROSS PROFIT PER UNIT SOLD:















New vehicle retail sales

$           1,611



$       1,664



(3.2)



(11.5)

Used vehicle retail sales

1,204



1,060



13.6



3.8

Used vehicle wholesale sales

(113)



(61)



(85.2)



(80.5)

Total used

658



588



11.9



1.9

Finance, insurance and other, net (per retail unit)

$              793



$          664



19.4



9.5

















OTHER: 















SG&A expenses

$       121,854



$     84,080



44.9



32.6

Adjusted SG&A expenses(1)

$       121,854



$     83,792



45.4



33.0

SG&A as % revenues

9.2



9.5









Adjusted SG&A as % revenues (1)

9.2



9.4









SG&A as % gross profit

83.3



83.1









Adjusted SG&A as % gross profit (1)

83.3



82.8









Operating margin %

1.4



1.5









Adjusted operating margin % (1)

1.4



1.6









Pretax margin %

0.9



1.2









Adjusted pretax margin % (1)

0.9



1.2

























INTEREST EXPENSE:















Floorplan interest expense

$         (3,131)



$      (2,087)



50.0



37.3

Floorplan assistance

526



449



17.1



6.8

Net floorplan expense

$         (2,605)



$      (1,638)



59.0



45.6

Other interest expense, net

$         (3,322)



$      (1,265)



162.6



140.3













(1) See the section of this release entitled "Non-GAAP Financial Measures" and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.

 

Group 1 Automotive, Inc.

Additional Information - Brazil

(Unaudited)

(Dollars in thousands, except per unit amounts)



















Three Months Ended June 30,



2018



2017



% Increase/

(Decrease)



Constant Currency (1)

% Increase/ (Decrease)

REVENUES:















New vehicle retail sales

$   70,053



$   73,582



(4.8)



6.2

Used vehicle retail sales

21,738



21,350



1.8



13.6

Used vehicle wholesale sales

3,546



2,453



44.6



63.5

Total used

25,284



23,803



6.2



18.8

Parts and service

11,244



11,883



(5.4)



5.8

Finance, insurance and other, net

1,997



2,134



(6.4)



4.6

Total

$ 108,578



$ 111,402



(2.5)



8.8

















GROSS MARGIN %:















New vehicle retail sales

6.2



5.7









Used vehicle retail sales

6.0



7.2









Used vehicle wholesale sales

1.9



8.2









Total used

5.4



7.3









Parts and service

44.5



45.9









Finance, insurance and other, net

100.0



100.0









Total

11.7



12.1

























GROSS PROFIT:















New vehicle retail sales

$     4,317



$     4,167



3.6



15.6

Used vehicle retail sales

1,302



1,530



(14.9)



(4.9)

Used vehicle wholesale sales

66



202



(67.3)



(66.7)

Total used

1,368



1,732



(21.0)



(12.2)

Parts and service

5,007



5,454



(8.2)



2.6

Finance, insurance and other, net

1,997



2,134



(6.4)



4.6

Total 

$   12,689



$   13,487



(5.9)



5.0

















UNITS SOLD:















Retail new vehicles sold

2,169



2,180



(0.5)





Retail used vehicles sold

1,023



988



3.5





Wholesale used vehicles sold

322



237



35.9





Total used

1,345



1,225



9.8





















AVERAGE RETAIL SALES PRICE:















New vehicle retail

$   32,297



$   33,753



(4.3)



6.8

Used vehicle retail

$   21,249



$   21,609



(1.7)



9.7

















GROSS PROFIT PER UNIT SOLD:















New vehicle retail sales

$     1,990



$     1,911



4.1



16.1

Used vehicle retail sales

1,273



1,549



(17.8)



(8.2)

Used vehicle wholesale sales

205



852



(75.9)



(75.5)

Total used

1,017



1,414



(28.1)



(20.0)

Finance, insurance and other, net (per retail unit)

$        626



$        674



(7.1)



3.8

















OTHER: 















SG&A expenses

$   11,555



$   12,268



(5.8)



5.3

Adjusted SG&A expenses(1)

$   11,005



$   12,268



(10.3)



0.1

SG&A as % revenues

10.6



11.0









Adjusted SG&A as % revenues (1)

10.1



11.0









SG&A as % gross profit

91.1



91.0









Adjusted SG&A as % gross profit (1)

86.7



91.0









Operating margin %

0.6



0.8









Adjusted operating margin % (1)

1.1



0.8









Pretax margin %

0.2



0.6









Adjusted pretax margin % (1)

0.7



0.6

























INTEREST EXPENSE:















Floorplan interest expense

$      (137)



$      (111)



23.4



37.1

Floorplan assistance





-



-

Net floorplan expense

$      (137)



$      (111)



23.4



37.1

Other interest expense, net

$      (292)



$        (59)



394.9



442.1



































Six Months Ended June 30,



2018



2017



% Increase/

(Decrease)



Constant Currency (1)

% Increase/ (Decrease)

REVENUES:















New vehicle retail sales

$ 139,286



$ 133,906



4.0



11.8

Used vehicle retail sales

45,929



44,961



2.2



9.6

Used vehicle wholesale sales

7,388



5,556



33.0



44.1

Total used

53,317



50,517



5.5



13.4

Parts and service

23,104



23,641



(2.3)



5.0

Finance, insurance and other, net

3,869



4,121



(6.1)



1.3

Total 

$ 219,576



$ 212,185



3.5



11.2

















GROSS MARGIN %:















New vehicle retail sales

5.8



5.8









Used vehicle retail sales

6.0



7.1









Used vehicle wholesale sales

2.9



8.2









Total used

5.6



7.2









Parts and service

44.9



44.8









Finance, insurance and other, net

100.0



100.0









Total

11.5



12.3

























GROSS PROFIT:















New vehicle retail sales

$     8,098



$     7,784



4.0



12.2

Used vehicle retail sales

2,752



3,174



(13.3)



(7.0)

Used vehicle wholesale sales

217



453



(52.1)



(50.7)

Total used

2,969



3,627



(18.1)



(12.4)

Parts and service

10,380



10,587



(2.0)



5.2

Finance, insurance and other, net

3,869



4,121



(6.1)



1.3

Total 

$   25,316



$   26,119



(3.1)



4.2

















UNITS SOLD:















Retail new vehicles sold

4,236



3,954



7.1





Retail used vehicles sold

2,094



2,014



4.0





Wholesale used vehicles sold

679



616



10.2





Total used

2,773



2,630



5.4





















AVERAGE RETAIL SALES PRICE:















New vehicle retail

$   32,881



$   33,866



(2.9)



4.4

Used vehicle retail

$   21,934



$   22,324



(1.7)



5.4

















GROSS PROFIT PER UNIT SOLD:















New vehicle retail sales

$     1,912



$     1,969



(2.9)



4.7

Used vehicle retail sales

1,314



1,576



(16.6)



(10.5)

Used vehicle wholesale sales

320



735



(56.5)



(55.3)

Total used

1,071



1,379



(22.3)



(16.9)

Finance, insurance and other, net (per retail unit)

$        611



$        691



(11.6)



(4.5)

















OTHER: 















SG&A expenses

$   23,365



$   24,150



(3.3)



4.0

Adjusted SG&A expenses(1)

$   22,815



$   24,150



(5.5)



1.3

SG&A as % revenues

10.6



11.4









Adjusted SG&A as % revenues (1)

10.4



11.4









SG&A as % gross profit

92.3



92.5









Adjusted SG&A as % gross profit (1)

90.1



92.5









Operating margin %

0.5



0.6









Adjusted operating margin % (1)

0.7



0.6









Pretax margin %

0.1



0.4









Adjusted pretax margin % (1)

0.3



0.4

























INTEREST EXPENSE:















Floorplan interest expense

$      (373)



$      (141)



164.5



178.2

Floorplan assistance





-



-

Net floorplan expense

$      (373)



$      (141)



164.5



178.2

Other interest expense, net

$      (564)



$      (205)



175.1



193.7













(1)See the section of this release entitled "Non-GAAP Financial Measures" and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

(Dollars in thousands, except per unit amounts)



















Three Months Ended June 30,



2018



2017



% Increase/

(Decrease)



Constant Currency % (1)

Increase/ (Decrease)

REVENUES:















New vehicle retail sales

$     1,555,570



$     1,448,768



7.4



6.6

Used vehicle retail sales

821,853



685,949



19.8



18.4

Used vehicle wholesale sales

92,854



99,377



(6.6)



(8.9)

Total used

914,707



785,326



16.5



14.9

Parts and service

358,129



331,631



8.0



7.4

Finance, insurance and other, net

115,056



106,470



8.1



7.5

Total

$     2,943,462



$     2,672,195



10.2



9.2

















GROSS MARGIN %:















New vehicle retail sales

4.9



5.2









Used vehicle retail sales

6.2



6.5









Used vehicle wholesale sales

0.3



(0.3)









Total used

5.6



5.7









Parts and service

54.5



53.9









Finance, insurance and other, net

100.0



100.0









Total

14.9



15.2

























GROSS PROFIT:















New vehicle retail sales

$          76,582



$          74,911



2.2



1.8

Used vehicle retail sales

51,214



44,913



14.0



12.7

Used vehicle wholesale sales

241



(267)



190.3



217.3

Total used

51,455



44,646



15.3



14.1

Parts and service

195,070



178,865



9.1



8.3

Finance, insurance and other, net

115,056



106,470



8.1



7.5

Total 

$        438,163



$        404,892



8.2



7.5

















UNITS SOLD:















Retail new vehicles sold

43,471



40,876



6.3





Retail used vehicles sold

38,008



32,003



18.8





Wholesale used vehicles sold

13,569



14,075



(3.6)





Total used

51,577



46,078



11.9





















AVERAGE RETAIL SALES PRICE:















New vehicle retail

$          35,784



$          35,443



1.0



0.2

Used vehicle retail

$          21,623



$          21,434



0.9



(0.3)

















GROSS PROFIT PER UNIT SOLD:















New vehicle retail sales

$            1,762



$            1,833



(3.9)



(4.3)

Used vehicle retail sales

1,347



1,403



(4.0)



(5.1)

Used vehicle wholesale sales

18



(19)



194.7



221.7

Total used

998



969



3.0



1.9

Finance, insurance and other, net (per retail unit)

$            1,412



$            1,461



(3.4)



(3.9)

















OTHER: 















SG&A expenses

$        308,092



$        298,568



3.2



2.4

Adjusted SG&A expenses (1)

$        319,849



$        297,637



7.5



6.6

SG&A as % revenues

10.5



11.2









Adjusted SG&A as % revenues (1)

10.9



11.1









SG&A as % gross profit

70.3



73.7









Adjusted SG&A as % gross profit (1)

73.0



73.5









Operating margin %

3.7



3.5









Adjusted operating margin % (1)

3.5



3.5









Pretax margin %

2.6



2.3









Adjusted pretax margin % (1)

2.3



2.3

























INTEREST EXPENSE:















Floorplan interest expense

$        (14,563)



$        (13,226)



10.1



9.5

Floorplan assistance

11,447



11,672



(1.9)



(2.1)

Net floorplan expense

$          (3,116)



$          (1,554)



100.5



96.2

Other interest expense, net

$        (19,414)



$        (17,315)



12.1



11.6



































Six Months Ended June 30,



2018



2017



% Increase/

(Decrease)



Constant Currency % (1)

Increase/ (Decrease)

REVENUES:















New vehicle retail sales

$     3,069,160



$     2,785,981



10.2



8.4

Used vehicle retail sales

1,602,423



1,346,876



19.0



16.7

Used vehicle wholesale sales

196,883



203,534



(3.3)



(6.8)

Total used

1,799,306



1,550,410



16.1



13.6

Parts and service

707,644



651,329



8.6



7.5

Finance, insurance and other, net

227,378



203,304



11.8



10.8

Total 

$     5,803,488



$     5,191,024



11.8



9.9

















GROSS MARGIN %:















New vehicle retail sales

5.0



5.2









Used vehicle retail sales

5.9



6.7









Used vehicle wholesale sales

1.0



(0.1)









Total used

5.4



5.8









Parts and service

54.0



53.9









Finance, insurance and other, net

100.0



100.0









Total

14.8



15.2

























GROSS PROFIT:















New vehicle retail sales

$        152,009



$        144,138



5.5



3.9

Used vehicle retail sales

94,709



89,918



5.3



3.7

Used vehicle wholesale sales

1,896



(167)



1235.3



1266.5

Total used

96,605



89,751



7.6



6.0

Parts and service

381,934



351,221



8.7



7.4

Finance, insurance and other, net

227,378



203,304



11.8



10.8

Total 

$        857,926



$        788,414



8.8



7.5

















UNITS SOLD:















Retail new vehicles sold

84,661



79,166



6.9





Retail used vehicles sold

74,224



63,569



16.8





Wholesale used vehicles sold

28,896



28,604



1.0





Total used

103,120



92,173



11.9





















AVERAGE RETAIL SALES PRICE:















New vehicle retail

$          36,252



$          35,192



3.0



1.3

Used vehicle retail

$          21,589



$          21,188



1.9



-

















GROSS PROFIT PER UNIT SOLD:















New vehicle retail sales

$            1,796



$            1,821



(1.4)



(2.9)

Used vehicle retail sales

1,276



1,414



(9.8)



(11.2)

Used vehicle wholesale sales

66



(6)



1200.0



1254.7

Total used

937



974



(3.8)



(5.2)

Finance, insurance and other, net (per retail unit)

$            1,431



$            1,424



0.5



(0.5)

















OTHER: 















SG&A expenses

$        632,439



$        588,347



7.5



6.0

Adjusted SG&A expenses(1)

$        644,196



$        589,249



9.3



7.8

SG&A as % revenues

10.9



11.3









Adjusted SG&A as % revenues (1)

11.1



11.4









SG&A as % gross profit

73.7



74.6









Adjusted SG&A as % gross profit(1)

75.1



74.7









Operating margin %

3.2



3.3









Adjusted operating margin % (1)

3.1



3.3









Pretax margin %

2.1



2.2









Adjusted pretax margin %(1)

2.0



2.2

























INTEREST EXPENSE:















Floorplan interest expense

$        (28,650)



$        (25,168)



13.8



12.9

Floorplan assistance

22,482



22,185



1.3



1.1

Net floorplan expense

$          (6,168)



$          (2,983)



106.8



100.0

Other interest expense, net

$        (38,234)



$        (34,314)



11.4



10.7















(1)See the section of this release entitled "Non-GAAP Financial Measures" and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)















Three Months Ended June 30,



2018



2017



% Increase/

(Decrease)

REVENUES:











New vehicle retail sales

$ 1,121,138



$ 1,139,798



(1.6)

Used vehicle retail sales

579,816



534,934



8.4

Used vehicle wholesale sales

41,158



66,187



(37.8)

Total used

620,974



601,121



3.3

Parts and service

284,494



281,555



1.0

Finance, insurance and other, net

95,298



93,933



1.5

Total 

$ 2,121,904



$ 2,116,407



0.3













GROSS MARGIN %:











New vehicle retail sales

4.9



5.0





Used vehicle retail sales

6.5



6.9





Used vehicle wholesale sales

3.8



0.4





Total used

6.3



6.1





Parts and service

54.2



53.8





Finance, insurance and other, net

100.0



100.0





Total

16.2



16.0

















GROSS PROFIT:











New vehicle retail sales

$      54,648



$      56,783



(3.8)

Used vehicle retail sales

37,716



36,649



2.9

Used vehicle wholesale sales

1,561



254



514.6

Total used

39,277



36,903



6.4

Parts and service

154,088



151,348



1.8

Finance, insurance and other, net

95,298



93,933



1.5

Total 

$    343,311



$    338,967



1.3













UNITS SOLD:











Retail new vehicles sold

29,830



30,730



(2.9)

Retail used vehicles sold

27,971



25,169



11.1

Wholesale used vehicles sold

7,133



9,681



(26.3)

Total used

35,104



34,850



0.7













AVERAGE RETAIL SALES PRICE:











New vehicle retail

$      37,584



$      37,091



1.3

Used vehicle retail

$      20,729



$      21,254



(2.5)













GROSS PROFIT PER UNIT SOLD:











New vehicle retail sales

$        1,832



$        1,848



(0.9)

Used vehicle retail sales

1,348



1,456



(7.4)

Used vehicle wholesale sales

219



26



742.3

Total used

1,119



1,059



5.7

Finance, insurance and other, net (per retail unit)

$        1,649



$        1,680



(1.8)













OTHER: 











SG&A expenses

$    249,033



$    242,559



2.7

Adjusted SG&A expenses(2)

$    241,221



$    241,916



(0.3)

SG&A as % revenues

11.7



11.5





Adjusted SG&A as % revenues (2)

11.4



11.4





SG&A as % gross profit

72.5



71.6





Adjusted SG&A as % gross profit (2)

70.3



71.4





Operating margin %

3.7



4.0





Adjusted operating margin % (2)

4.2



4.0



















Six Months Ended June 30,



2018



2017



% Increase/

(Decrease)

REVENUES:











New vehicle retail sales

$ 2,189,357



$ 2,158,047



1.5

Used vehicle retail sales

1,133,549



1,056,879



7.3

Used vehicle wholesale sales

93,938



136,732



(31.3)

Total used

1,227,487



1,193,611



2.8

Parts and service

564,897



552,714



2.2

Finance, insurance and other, net

189,450



179,323



5.6

Total 

$ 4,171,191



$ 4,083,695



2.1













GROSS MARGIN %:











New vehicle retail sales

4.9



5.0





Used vehicle retail sales

6.2



7.1





Used vehicle wholesale sales

3.2



(0.1)





Total used

6.0



6.2





Parts and service

53.6



53.8





Finance, insurance and other, net

100.0



100.0





Total

16.1



16.1

















GROSS PROFIT:











New vehicle retail sales

$    106,718



$    107,991



(1.2)

Used vehicle retail sales

70,744



74,579



(5.1)

Used vehicle wholesale sales

2,986



(90)



3,417.8

Total used

73,730



74,489



(1.0)

Parts and service

302,998



297,346



1.9

Finance, insurance and other, net

189,450



179,323



5.6

Total 

$    672,896



$    659,149



2.1













UNITS SOLD:











Retail new vehicles sold

57,980



58,228



(0.4)

Retail used vehicles sold

54,829



50,098



9.4

Wholesale used vehicles sold

16,356



19,662



(16.8)

Total used

71,185



69,760



2.0













AVERAGE RETAIL SALES PRICE:











New vehicle retail

$      37,761



$      37,062



1.9

Used vehicle retail

$      20,674



$      21,096



(2.0)













GROSS PROFIT PER UNIT SOLD:











New vehicle retail sales

$        1,841



$        1,855



(0.8)

Used vehicle retail sales

1,290



1,489



(13.4)

Used vehicle wholesale sales

183



(5)



3,760.0

Total used

1,036



1,068



(3.0)

Finance, insurance and other, net (per retail unit)

$        1,679



$        1,655



1.5













OTHER: 











SG&A expenses

$    496,645



$    478,610



3.8

Adjusted SG&A expenses(2)

$    488,833



$    479,800



1.9

SG&A as % revenues

11.9



11.7





Adjusted SG&A as % revenues (2)

11.7



11.7





SG&A as % gross profit

73.8



72.6





Adjusted SG&A as % gross profit (2)

72.6



72.8





Operating margin %

3.5



3.9





Adjusted operating margin % (2)

3.8



3.8

















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

(2)See the section of this release entitled "Non-GAAP Financial Measures" and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)



















Three Months Ended June 30,



2018



2017



% Increase/

(Decrease)



Constant Currency (2)

% Increase/ (Decrease)

REVENUES:















New vehicle retail sales

$ 254,118



$ 229,878



10.5



4.0

Used vehicle retail sales

149,344



127,475



17.2



10.2

Used vehicle wholesale sales

34,939



30,247



15.5



8.7

Total used

184,283



157,722



16.8



9.9

Parts and service

42,786



36,808



16.2



9.4

Finance, insurance and other, net

11,895



9,734



22.2



15.3

Total 

$ 493,082



$ 434,142



13.6



6.9

















GROSS MARGIN %:















New vehicle retail sales

5.2



6.0









Used vehicle retail sales

5.3



5.2









Used vehicle wholesale sales

(2.7)



(2.3)









Total used

3.8



3.8









Parts and service

58.2



57.9









Finance, insurance and other, net

100.0



100.0









Total

11.6



11.7

























GROSS PROFIT:















New vehicle retail sales

$   13,251



$   13,702



(3.3)



(8.5)

Used vehicle retail sales

7,974



6,636



20.2



12.3

Used vehicle wholesale sales

(928)



(696)



(33.3)



(25.9)

Total used

7,046



5,940



18.6



10.7

Parts and service

24,904



21,316



16.8



10.0

Finance, insurance and other, net

11,895



9,734



22.2



15.3

Total 

$   57,096



$   50,692



12.6



6.1

















UNITS SOLD:















Retail new vehicles sold

8,374



7,812



7.2





Retail used vehicles sold

5,998



5,758



4.2





Wholesale used vehicles sold

4,487



4,104



9.3





Total used

10,485



9,862



6.3





















AVERAGE RETAIL SALES PRICE:















New vehicle retail

$   30,346



$   29,426



3.1



(2.9)

Used vehicle retail

$   24,899



$   22,139



12.5



5.8

















GROSS PROFIT PER UNIT SOLD:















New vehicle retail sales

$     1,582



$     1,754



(9.8)



(14.7)

Used vehicle retail sales

1,329



1,152



15.4



7.8

Used vehicle wholesale sales

(207)



(170)



(21.8)



(15.2)

Total used

672



602



11.6



4.1

Finance, insurance and other, net (per retail unit)

$        828



$        717



15.5



8.9

















OTHER: 















SG&A expenses

$   46,319



$   42,087



10.1



3.4

Adjusted SG&A expenses(2)

$   46,319



$   41,799



10.8



4.1

SG&A as % revenues

9.4



9.7









Adjusted SG&A as % revenues (2)

9.4



9.6









SG&A as % gross profit

81.1



83.0









Adjusted SG&A as % gross profit (2)

81.1



82.5









Operating margin %

1.7



1.6









Adjusted operating margin % (2)

1.7



1.6



























Six Months Ended June 30,



2018



2017



% Increase/

(Decrease)



Constant Currency (2)

% Increase/ (Decrease)

REVENUES:















New vehicle retail sales

$ 524,178



$ 486,582



7.7



(1.7)

Used vehicle retail sales

295,584



242,281



22.0



11.7

Used vehicle wholesale sales

71,012



60,662



17.1



7.1

Total used

366,596



302,943



21.0



10.8

Parts and service

84,011



73,254



14.7



5.0

Finance, insurance and other, net

22,530



18,707



20.4



10.4

Total 

$ 997,315



$ 881,486



13.1



3.4

















GROSS MARGIN %:















New vehicle retail sales

5.3



5.8









Used vehicle retail sales

5.0



5.0









Used vehicle wholesale sales

(1.4)



(0.8)









Total used

3.7



3.8









Parts and service

57.6



57.9









Finance, insurance and other, net

100.0



100.0









Total

11.3



11.4

























GROSS PROFIT:















New vehicle retail sales

$   27,835



$   27,999



(0.6)



(9.1)

Used vehicle retail sales

14,645



12,019



21.8



11.4

Used vehicle wholesale sales

(978)



(484)



(102.1)



(94.1)

Total used

13,667



11,535



18.5



7.9

Parts and service

48,409



42,389



14.2



4.6

Finance, insurance and other, net

22,530



18,707



20.4



10.4

Total 

$ 112,441



$ 100,630



11.7



2.3

















UNITS SOLD:















Retail new vehicles sold

16,386



16,716



(2.0)





Retail used vehicles sold

11,862



11,336



4.6





Wholesale used vehicles sold

8,820



8,246



7.0





Total used

20,682



19,582



5.6





















AVERAGE RETAIL SALES PRICE:















New vehicle retail

$   31,989



$   29,109



9.9



0.3

Used vehicle retail

$   24,919



$   21,373



16.6



6.8

















GROSS PROFIT PER UNIT SOLD:















New vehicle retail sales

$     1,699



$     1,675



1.4



(7.2)

Used vehicle retail sales

1,235



1,060



16.5



6.4

Used vehicle wholesale sales

(111)



(59)



(88.1)



(81.5)

Total used

661



589



12.2



2.1

Finance, insurance and other, net (per retail unit)

$        798



$        667



19.6



9.7

















OTHER: 















SG&A expenses

$   93,134



$   83,017



12.2



2.6

Adjusted SG&A expenses(2)

$   93,134



$   82,729



12.6



3.0

SG&A as % revenues

9.3



9.4









Adjusted SG&A as % revenues (2)

9.3



9.4









SG&A as % gross profit

82.8



82.5









Adjusted SG&A as % gross profit (2)

82.8



82.2









Operating margin %

1.5



1.6









Adjusted operating margin % (2)

1.5



1.6























(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)See the section of this release entitled "Non-GAAP Financial Measures" and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.

 

Group 1 Automotive, Inc.

Additional Information - Same Store Brazil (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)



















Three Months Ended June 30,



2018



2017



% Increase/

(Decrease)



Constant Currency (2)

% Increase/ (Decrease)

REVENUES:















New vehicle retail sales

$   67,152



$   73,584



(8.7)



1.7

Used vehicle retail sales

21,270



21,350



(0.4)



11.1

Used vehicle wholesale sales

3,547



2,453



44.6



63.5

Total used

24,817



23,803



4.3



16.5

Parts and service

10,932



11,887



(8.0)



2.7

Finance, insurance and other, net

1,966



2,090



(5.9)



5.1

Total 

$ 104,867



$ 111,364



(5.8)



5.0

















GROSS MARGIN %:















New vehicle retail sales

6.2



5.7









Used vehicle retail sales

6.0



7.2









Used vehicle wholesale sales

1.9



8.2









Total used

5.4



7.3









Parts and service

44.2



45.9









Finance, insurance and other, net

100.0



100.0









Total

11.7



12.1

























GROSS PROFIT:















New vehicle retail sales

$     4,166



$     4,169



(0.1)



11.4

Used vehicle retail sales

1,278



1,537



(16.9)



(7.1)

Used vehicle wholesale sales

66



202



(67.3)



(66.7)

Total used

1,344



1,739



(22.7)



(14.1)

Parts and service

4,831



5,457



(11.5)



(1.2)

Finance, insurance and other, net

1,966



2,090



(5.9)



5.1

Total 

$   12,307



$   13,455



(8.5)



2.0

















UNITS SOLD:















Retail new vehicles sold

2,063



2,180



(5.4)





Retail used vehicles sold

996



988



0.8





Wholesale used vehicles sold

314



237



32.5





Total used

1,310



1,225



6.9





















AVERAGE RETAIL SALES PRICE:















New vehicle retail

$   32,551



$   33,754



(3.6)



7.5

Used vehicle retail

$   21,355



$   21,609



(1.2)



10.2

















GROSS PROFIT PER UNIT SOLD:















New vehicle retail sales

$     2,019



$     1,912



5.6



17.7

Used vehicle retail sales

1,283



1,556



(17.5)



(7.9)

Used vehicle wholesale sales

210



852



(75.4)



(74.9)

Total used

1,026



1,420



(27.7)



(19.6)

Finance, insurance and other, net (per retail unit)

$        643



$        660



(2.6)



8.9

















OTHER: 















SG&A expenses

$   11,080



$   12,031



(7.9)



3.1

Adjusted SG&A expenses(2)

$   10,653



$   12,031



(11.5)



(1.1)

SG&A as % revenues

10.6



10.8









Adjusted SG&A as % revenues (2)

10.2



10.8









SG&A as % gross profit

90.0



89.4









Adjusted SG&A as % gross profit (2)

86.6



89.4









Operating margin %

0.7



1.0









Adjusted operating margin % (2)

1.1



1.0



























Six Months Ended June 30,



2018



2017



% Increase/

(Decrease)



Constant Currency (2)

% Increase/ (Decrease)

REVENUES:















New vehicle retail sales

$ 136,387



$ 131,670



3.6



11.2

Used vehicle retail sales

45,461



43,151



5.4



13.0

Used vehicle wholesale sales

7,388



5,539



33.4



44.5

Total used

52,849



48,690



8.5



16.6

Parts and service

22,791



22,985



(0.8)



6.4

Finance, insurance and other, net

3,838



3,881



(1.1)



6.6

Total 

$ 215,865



$ 207,226



4.2



11.8

















GROSS MARGIN %:















New vehicle retail sales

5.8



5.8









Used vehicle retail sales

6.0



7.3









Used vehicle wholesale sales

2.9



8.2









Total used

5.6



7.4









Parts and service

44.8



45.7









Finance, insurance and other, net

100.0



100.0









Total

11.6



12.4

























GROSS PROFIT:















New vehicle retail sales

$     7,948



$     7,688



3.4



11.4

Used vehicle retail sales

2,730



3,129



(12.8)



(6.4)

Used vehicle wholesale sales

217



453



(52.1)



(50.7)

Total used

2,947



3,582



(17.7)



(12.0)

Parts and service

10,203



10,499



(2.8)



4.1

Finance, insurance and other, net

3,838



3,881



(1.1)



6.6

Total 

$   24,936



$   25,650



(2.8)



4.4

















UNITS SOLD:















Retail new vehicles sold

4,130



3,856



7.1





Retail used vehicles sold

2,067



1,969



5.0





Wholesale used vehicles sold

671



506



32.6





Total used

2,738



2,475



10.6





















AVERAGE RETAIL SALES PRICE:















New vehicle retail

$   33,023



$   34,147



(3.3)



3.8

Used vehicle retail

$   21,994



$   21,915



0.4



7.6

















GROSS PROFIT PER UNIT SOLD:















New vehicle retail sales

$     1,924



$     1,994



(3.5)



4.0

Used vehicle retail sales

1,321



1,589



(16.9)



(10.9)

Used vehicle wholesale sales

323



895



(63.9)



(62.8)

Total used

1,076



1,447



(25.6)



(20.5)

Finance, insurance and other, net (per retail unit)

$        619



$        666



(7.1)



0.2

















OTHER: 















SG&A expenses

$   22,853



$   23,346



(2.1)



5.2

Adjusted SG&A expenses(2)

$   22,426



$   23,346



(3.9)



3.0

SG&A as % revenues

10.6



11.3









Adjusted SG&A as % revenues (2)

10.4



11.3









SG&A as % gross profit

91.6



91.0









Adjusted SG&A as % gross profit (2)

89.9



91.0









Operating margin %

0.6



0.8









Adjusted operating margin % (2)

0.8



0.8























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

(2)See the section of this release entitled "Non-GAAP Financial Measures" and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.

 

Group 1 Automotive, Inc.

Additional Information - Same Store Consolidated (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)



















Three Months Ended June 30,



2018



2017



% Increase/

(Decrease)



Constant Currency (2)

% Increase/ (Decrease)

REVENUES:















New vehicle retail sales

$   1,442,408



$   1,443,260



(0.1)



(0.6)

Used vehicle retail sales

750,430



683,759



9.8



8.8

Used vehicle wholesale sales

79,644



98,887



(19.5)



(21.1)

Total used

830,074



782,646



6.1



5.0

Parts and service

338,212



330,250



2.4



2.0

Finance, insurance and other, net

109,159



105,757



3.2



2.8

Total 

$   2,719,853



$   2,661,913



2.2



1.5

















GROSS MARGIN %:















New vehicle retail sales

5.0



5.2









Used vehicle retail sales

6.3



6.6









Used vehicle wholesale sales

0.9



(0.2)









Total used

5.7



5.7









Parts and service

54.4



53.9









Finance, insurance and other, net

100.0



100.0









Total

15.2



15.1

























GROSS PROFIT:















New vehicle retail sales

$        72,065



$        74,654



(3.5)



(3.8)

Used vehicle retail sales

46,968



44,822



4.8



4.0

Used vehicle wholesale sales

699



(240)



391.3



413.1

Total used

47,667



44,582



6.9



6.2

Parts and service

183,823



178,121



3.2



2.7

Finance, insurance and other, net

109,159



105,757



3.2



2.8

Total 

$      412,714



$      403,114



2.4



1.9

















UNITS SOLD:















Retail new vehicles sold

40,267



40,722



(1.1)





Retail used vehicles sold

34,965



31,915



9.6





Wholesale used vehicles sold

11,934



14,022



(14.9)





Total used

46,899



45,937



2.1





















AVERAGE RETAIL SALES PRICE:















New vehicle retail

$        35,821



$        35,442



1.1



0.6

Used vehicle retail

$        21,462



$        21,424



0.2



(0.7)

















GROSS PROFIT PER UNIT SOLD:















New vehicle retail sales

$          1,790



$          1,833



(2.3)



(2.7)

Used vehicle retail sales

1,343



1,404



(4.3)



(5.1)

Used vehicle wholesale sales

59



(17)



447.1



467.9

Total used

1,016



971



4.6



4.0

Finance, insurance and other, net (per retail unit)

$          1,451



$          1,456



(0.3)



(0.7)

















OTHER: 















SG&A expenses

$      306,432



$      296,677



3.3



2.8

Adjusted SG&A expenses(2)

$      298,193



$      295,746



0.8



0.3

SG&A as % revenues

11.3



11.1









Adjusted SG&A as % revenues (2)

11.0



11.1









SG&A as % gross profit

74.2



73.6









Adjusted SG&A as % gross profit (2)

72.3



73.4









Operating margin %

3.2



3.5









Adjusted operating margin % (2)

3.6



3.5



























Six Months Ended June 30,



2018



2017



% Increase/

(Decrease)



Constant Currency (2)

% Increase/ (Decrease)

REVENUES:















New vehicle retail sales

$   2,849,922



$   2,776,299



2.7



1.4

Used vehicle retail sales

1,474,594



1,342,311



9.9



8.2

Used vehicle wholesale sales

172,338



202,933



(15.1)



(17.8)

Total used

1,646,932



1,545,244



6.6



4.8

Parts and service

671,699



648,953



3.5



2.7

Finance, insurance and other, net

215,818



201,911



6.9



6.1

Total 

$   5,384,371



$   5,172,407



4.1



2.7

















GROSS MARGIN %:















New vehicle retail sales

5.0



5.2









Used vehicle retail sales

6.0



6.7









Used vehicle wholesale sales

1.3



(0.1)









Total used

5.5



5.8









Parts and service

53.8



54.0









Finance, insurance and other, net

100.0



100.0









Total

15.0



15.2

























GROSS PROFIT:















New vehicle retail sales

$      142,501



$      143,678



(0.8)



(2.0)

Used vehicle retail sales

88,119



89,727



(1.8)



(3.0)

Used vehicle wholesale sales

2,225



(121)



1,938.8



1979.1

Total used

90,344



89,606



0.8



(0.3)

Parts and service

361,610



350,234



3.2



2.3

Finance, insurance and other, net

215,818



201,911



6.9



6.1

Total 

$      810,273



$      785,429



3.2



2.2

















UNITS SOLD:















Retail new vehicles sold

78,496



78,800



(0.4)





Retail used vehicles sold

68,758



63,403



8.4





Wholesale used vehicles sold

25,847



28,414



(9.0)





Total used

94,605



91,817



3.0





















AVERAGE RETAIL SALES PRICE:















New vehicle retail

$        36,307



$        35,232



3.1



1.8

Used vehicle retail

$        21,446



$        21,171



1.3



(0.2)

















GROSS PROFIT PER UNIT SOLD:















New vehicle retail sales

$          1,815



$          1,823



(0.4)



(1.7)

Used vehicle retail sales

1,282



1,415



(9.4)



(10.5)

Used vehicle wholesale sales

86



(4)



2,250.0



2165.7

Total used

955



976



(2.2)



(3.3)

Finance, insurance and other, net (per retail unit)

$          1,466



$          1,420



3.2



2.5

















OTHER: 















SG&A expenses

$      612,632



$      584,973



4.7



3.7

Adjusted SG&A expenses(2)

$      604,393



$      585,875



3.2



2.1

SG&A as % revenues

11.4



11.3









Adjusted SG&A as % revenues (2)

11.2



11.3









SG&A as % gross profit

75.6



74.5









Adjusted SG&A as % gross profit (2)

74.6



74.6









Operating margin %

3.0



3.3









Adjusted operating margin % (2)

3.3



3.3























(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)See the section of this release entitled "Non-GAAP Financial Measures " and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.

 

Group 1 Automotive, Inc.

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

(Unaudited)

 (Dollars in thousands, except per share amounts)





Three Months Ended June 30,





2018



2017



% Increase/

(Decrease)

SG&A RECONCILIATION:













As reported

$ 234,279



$ 243,844



(3.9)



  Pre-tax adjustments:













 Catastrophic events 

(5,812)



(643)







 Gain on real estate and dealership transactions 

20,119



-







 Legal settlements 

(2,000)



-







Adjusted SG&A (1)

$ 246,586



$ 243,201



1.4

SG&A AS % REVENUES:













Unadjusted

10.8



11.5







Adjusted (1)

11.4



11.5





SG&A AS % GROSS PROFIT:













Unadjusted

66.8



71.6







Adjusted (1)

70.3



71.4





OPERATING MARGIN %:













Unadjusted

4.6



4.0







Adjusted (1), (2)

4.2



4.0





PRETAX MARGIN %:













Unadjusted

3.2



2.6







Adjusted (1), (2)

2.8



2.7





SAME STORE SG&A RECONCILIATION:













As reported

$ 249,033



$ 242,559



2.7



  Pre-tax adjustments:













 Catastrophic events 

(5,812)



(643)







 Legal settlements 

(2,000)



-







Adjusted Same Store SG&A (1)

$ 241,221



$ 241,916



(0.3)

SAME STORE SG&A AS % REVENUES:













Unadjusted

11.7



11.5







Adjusted (1)

11.4



11.4





SAME STORE SG&A AS % GROSS PROFIT:













Unadjusted

72.5



71.6







Adjusted (1)

70.3



71.4





SAME STORE OPERATING MARGIN %:













Unadjusted

3.7



4.0







Adjusted (1), (3)

4.2



4.0























Six Months Ended June 30,





2018



2017



% Increase/

(Decrease)

SG&A RECONCILIATION:













As reported

$ 487,220



$ 480,117



1.5



  Pre-tax adjustments:













 Catastrophic events 

(5,812)



(643)







 Gain on real estate and dealership transactions 

20,119



-







 Legal settlements 

(2,000)



1,833







Adjusted SG&A (1)

$ 499,527



$ 481,307



3.8

SG&A AS % REVENUES:













Unadjusted

11.4



11.7







Adjusted (1)

11.7



11.8





SG&A AS % OF GROSS PROFIT:













Unadjusted

71.0



72.6







Adjusted (1)

72.8



72.8





OPERATING MARGIN %:













 Unadjusted 

4.0



3.8







Adjusted (1), (2)

3.8



3.8





PRETAX MARGIN %:













Unadjusted

2.6



2.5







Adjusted (1), (2)

2.4



2.5





SAME STORE SG&A RECONCILIATION:













As reported

$ 496,645



$ 478,610



3.8



  Pre-tax adjustments:













 Catastrophic events 

(5,812)



(643)







 Legal settlements 

(2,000)



1,833







Adjusted Same Store SG&A (1)

$ 488,833



$ 479,800



1.9

SAME STORE SG&A AS % REVENUES:













Unadjusted

11.9



11.7







Adjusted (1)

11.7



11.7





SAME STORE SG&A AS % GROSS PROFIT:













Unadjusted

73.8



72.6







Adjusted (1)

72.6



72.8





SAME STORE OPERATING MARGIN %:













Unadjusted

3.5



3.9







Adjusted (1), (3)

3.8



3.8



















 (1)See the section of this release entitled "Non-GAAP Financial Measures" for information regarding non-GAAP financial measures and certain selected items that the Company believes impact comparability of financial results between reporting periods.

(2)Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $4,268 for the three and six months ended June 30, 2018.

(3)Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $4,022 for the three and six months ended June 30, 2018.

 

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,





2018



2017



% Increase/

(Decrease)

SG&A RECONCILIATION:













As reported

$   62,258



$ 42,456



46.6



  Pre-tax adjustments:













 Acquisition costs 

-



(288)







Adjusted SG&A (1)

$   62,258



$ 42,168



47.6

SG&A AS % REVENUES:













Unadjusted

9.3



9.7







Adjusted (1)

9.3



9.6





SG&A AS % GROSS PROFIT:













Unadjusted

83.2



83.4







Adjusted (1)

83.2



82.8





OPERATING MARGIN %:













Unadjusted

1.4



1.5







Adjusted (1)

1.4



1.6





PRETAX MARGIN %:













Unadjusted

0.9



1.1







Adjusted (1)

0.9



1.2





SAME STORE SG&A RECONCILIATION:













As reported

$   46,319



$ 42,087



10.1



  Pre-tax adjustments:













 Acquisition costs 

-



(288)







Adjusted Same Store SG&A (1)

$   46,319



$ 41,799



10.8

SAME STORE SG&A AS % REVENUES:













Unadjusted

9.4



9.7







Adjusted (1)

9.4



9.6





SAME STORE SG&A AS % GROSS PROFIT:













Unadjusted

81.1



83.0







Adjusted (1)

81.1



82.5





SAME STORE OPERATING MARGIN %:













Unadjusted

1.7



1.6







Adjusted (1)

1.7



1.6























 Six Months Ended June 30, 





2018



2017



% Increase/

(Decrease)

SG&A RECONCILIATION:













As reported

$ 121,854



$ 84,080



44.9



  Pre-tax adjustments:













 Acquisition costs 

-



(288)







Adjusted SG&A (1)

$ 121,854



$ 83,792



45.4

SG&A AS % REVENUES:













Unadjusted

9.2



9.5







Adjusted (1)

9.2



9.4





SG&A AS % OF GROSS PROFIT:













Unadjusted

83.3



83.1







Adjusted (1)

83.3



82.8





OPERATING MARGIN %:













Unadjusted

1.4



1.5







Adjusted (1)

1.4



1.6





PRETAX MARGIN %:













Unadjusted

0.9



1.2







Adjusted (1)

0.9



1.2





SAME STORE SG&A RECONCILIATION:













As reported

$   93,134



$ 83,017



12.2



  Pre-tax adjustments:













 Acquisition costs 

-



(288)







Adjusted Same Store SG&A (1)

$   93,134



$ 82,729



12.6

SAME STORE SG&A AS % REVENUES:













Unadjusted

9.3



9.4







Adjusted (1)

9.3



9.4





SAME STORE SG&A AS % GROSS PROFIT:













Unadjusted

82.8



82.5







Adjusted (1)

82.8



82.2





SAME STORE OPERATING MARGIN %:













Unadjusted

1.5



1.6







Adjusted (1)

1.5



1.6



















 (1)See the section of this release entitled "Non-GAAP Financial Measures" for information regarding non-GAAP financial measures and certain selected items that the Company believes impact comparability of financial results between reporting periods.

 

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,





2018



2017



% Increase/

(Decrease)

SG&A RECONCILIATION:













As reported

$ 11,555



$ 12,268



(5.8)



  Pre-tax adjustments:













 Legal settlements 

(550)



-







Adjusted SG&A (1)

$ 11,005



$ 12,268



(10.3)

SG&A AS % REVENUES:













Unadjusted

10.6



11.0







Adjusted (1)

10.1



11.0





SG&A AS % GROSS PROFIT:













Unadjusted

91.1



91.0







Adjusted (1)

86.7



91.0





OPERATING MARGIN %:













Unadjusted

0.6



0.8







Adjusted (1)

1.1



0.8





PRETAX MARGIN %:













Unadjusted

0.2



0.6







Adjusted (1)

0.7



0.6





SAME STORE SG&A RECONCILIATION:













As reported

$ 11,080



$ 12,031



(7.9)



  Pre-tax adjustments:













 Legal settlements 

(427)



-







Adjusted Same Store SG&A (1)

$ 10,653



$ 12,031



(11.5)

SAME STORE SG&A AS % REVENUES:













Unadjusted

10.6



10.8







Adjusted (1)

10.2



10.8





SAME STORE SG&A AS % GROSS PROFIT:













Unadjusted

90.0



89.4







Adjusted (1)

86.6



89.4





SAME STORE OPERATING MARGIN %:













Unadjusted

0.7



1.0







Adjusted (1)

1.1



1.0























 Six Months Ended June 30, 





2018



2017



% Increase/

(Decrease)

SG&A RECONCILIATION:













As reported

$ 23,365



$ 24,150



(3.3)



  Pre-tax adjustments:













 Legal settlements 

(550)



-







Adjusted SG&A (1)

$ 22,815



$ 24,150



(5.5)

SG&A AS % REVENUES:













Unadjusted

10.6



11.4







Adjusted (1)

10.4



11.4





SG&A AS % OF GROSS PROFIT:













Unadjusted

92.3



92.5







Adjusted (1)

90.1



92.5





OPERATING MARGIN %:













Unadjusted

0.5



0.6







Adjusted (1)

0.7



0.6





PRETAX MARGIN %:













Unadjusted

0.1



0.4







Adjusted (1)

0.3



0.4





SAME STORE SG&A RECONCILIATION:













As reported

$ 22,853



$ 23,346



(2.1)



  Pre-tax adjustments:













 Legal settlements 

(427)



-







Adjusted Same Store SG&A (1)

$ 22,426



$ 23,346



(3.9)















SAME STORE SG&A AS % REVENUES:













Unadjusted

10.6



11.3







Adjusted (1)

10.4



11.3





SAME STORE SG&A AS % GROSS PROFIT:













Unadjusted

91.6



91.0







Adjusted (1)

89.9



91.0





SAME STORE OPERATING MARGIN %:













Unadjusted

0.6



0.8







Adjusted (1)

0.8



0.8



















 (1)See the section of this release entitled "Non-GAAP Financial Measures" for information regarding non-GAAP financial measures and certain selected items that the Company believes impact comparability of financial results between reporting periods.

 

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,





2018



2017



% Increase/

(Decrease)















NET INCOME RECONCILIATION:













As reported













  Pretax Net Income

$        75,188



$        61,690







  Income Tax Provision

(18,725)



(22,557)







     Net Income  

$        56,463



$        39,133



44.3



       Effective Tax Rate 

24.9%



36.6%







 Adjustments:  













 Catastrophic events  













 Pre-tax 

$          5,812



$             643







 Tax impact 

(1,444)



(250)







 Gain on real estate and dealership transactions 













 Pre-tax 

(20,119)



-







 Tax impact 

4,917



-







 Acquisition costs  













 Pre-tax 

-



288







 Tax impact 

-



-







 Legal settlements 













 Pre-tax 

2,550



-







 Tax impact 

(568)



-







 Non-cash asset impairment 













 Pre-tax  

4,268



-







 Tax impact 

(1,089)



-







 Adjusted 













   Pretax Net Income 

$        67,699



$        62,621







   Income Tax Provision 

(16,909)



(22,807)







  Adjusted net income (1)

$        50,790



$        39,814



27.6



       Effective Tax Rate 

25.0%



36.42%





ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION:













Adjusted net income (1)

$        50,790



$        39,814



27.6



Less: Adjusted earnings allocated to participating securities

1,722



1,413



21.9



Adjusted net income available to diluted common shares (1)

$        49,068



$        38,401



27.8

 DILUTED (LOSS) INCOME PER COMMON SHARE RECONCILIATION: 













As reported

$            2.72



$            1.84



47.8



  After-tax adjustments:













 Catastrophic events  

0.21



0.02







 Gain on real estate and dealership transactions 

(0.73)



-







 Acquisition costs including related tax impact  

-



0.01







 Legal settlements  

0.10



-







 Non-cash asset impairment 

0.15



-







Adjusted diluted income per share (1)

$            2.45



$            1.87



31.0

SG&A RECONCILIATION:













As reported

$      308,092



$      298,568



3.2



  Pre-tax adjustments:













 Catastrophic events 

(5,812)



(643)







 Gain on real estate and dealership transactions 

20,119



-







 Acquisition costs 

-



(288)







 Legal settlements 

(2,550)



-







Adjusted SG&A (1)

$      319,849



$      297,637



7.5

SG&A AS % REVENUES:













Unadjusted

10.5



11.2







Adjusted (1)

10.9



11.1





SG&A AS % GROSS PROFIT:













Unadjusted

70.3



73.7







Adjusted (1)

73.0



73.5





OPERATING MARGIN %:













Unadjusted

3.7



3.5







Adjusted (1), (2)

3.5



3.5





PRETAX MARGIN %:













Unadjusted

2.6



2.3







Adjusted (1), (2)

2.3



2.3





SAME STORE SG&A RECONCILIATION:













As reported

$      306,432



$      296,677



3.3



  Pre-tax adjustments:













 Catastrophic events 

(5,812)



(643)







 Acquisition costs 

-



(288)







 Legal settlements 

(2,427)



-







Adjusted Same Store SG&A (1)

$      298,193



$      295,746



0.8

SAME STORE SG&A AS % REVENUES:













Unadjusted

11.3



11.1







Adjusted (1)

11.0



11.1





SAME STORE SG&A AS % GROSS PROFIT:













Unadjusted

74.2



73.6







Adjusted (1)

72.3



73.4





SAME STORE OPERATING MARGIN %:













Unadjusted

3.2



3.5







Adjusted (1), (3)

3.6



3.5























 Six Months Ended June 30, 





2018



2017



% Increase/

(Decrease)

NET INCOME RECONCILIATION:













As reported













  Pretax Net Income

$      121,355



$      112,886







   Income Tax Provision 

(29,078)



(39,814)







     Net Income  

$        92,277



$        73,072



26.3



       Effective Tax Rate 

24.0%



35.3%







 Adjustments: 













 Catastrophic events  













 Pre-tax 

$          5,812



$             643







 Tax impact 

(1,444)



(250)







 Gain on real estate and dealership transactions 













 Pre-tax 

(20,119)



-







 Tax impact 

4,917



-







 Acquisition costs  













 Pre-tax 

-



288







 Tax impact 

-



-







 Legal settlements 













 Pre-tax 

2,550



(1,833)







 Tax impact 

(568)



696







 Non-cash asset impairment 













 Pre-tax  

4,268



-







 Tax impact 

(1,089)



-







 Adjusted 













   Pretax Net Income 

$      113,866



$      111,984







   Income Tax Provision 

(27,262)



(39,368)







Adjusted net income (1)

$        86,604



$        72,616



19.3



      Effective Tax Rate

23.9%



35.2%





 ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION:













Adjusted net income (1)

$        86,604



$        72,616



19.3



 Less: Adjusted earnings allocated to participating securities 

2,930



2,628



11.5



  Adjusted net income available to diluted common shares (1)

$        83,674



$        69,988



19.6

 DILUTED INCOME PER COMMON SHARE RECONCILIATION: 













 As reported 

$            4.42



$            3.42



29.2



   After-tax adjustments: 













 Catastrophic events  

0.21



0.02







 Gain on real estate and dealership transactions 

(0.73)



-







 Acquisition costs including related tax impact  

-



0.01







 Legal settlements  

0.10



(0.05)







 Non-cash asset impairment 

0.15



-







Adjusted diluted income per share (1)

$            4.15



$            3.40



22.1

SG&A RECONCILIATION:













As reported

$      632,439



$      588,347



7.5



  Pre-tax adjustments:













 Catastrophic events 

(5,812)



(643)







 Gain on real estate and dealership transactions 

20,119



-







 Acquisition costs 

-



(288)







 Legal settlements 

(2,550)



1,833







Adjusted SG&A (1)

$      644,196



$      589,249



9.3

SG&A AS % REVENUES:













Unadjusted

10.9



11.3







Adjusted (1)

11.1



11.4





SG&A AS % OF GROSS PROFIT:













Unadjusted

73.7



74.6







Adjusted (1)

75.1



74.7





OPERATING MARGIN %:













Unadjusted

3.2



3.3







Adjusted (1), (2)

3.1



3.3





PRETAX MARGIN %:













Unadjusted

2.1



2.2







Adjusted (1), (2)

2.0



2.2





 SAME STORE SG&A RECONCILIATION: 













As reported

$      612,632



$      584,973



4.7



  Pre-tax adjustments:













 Catastrophic events 

(5,812)



(643)







 Acquisition costs 

-



(288)







 Legal settlements 

(2,427)



1,833







Adjusted Same Store SG&A (1)

$      604,393



$      585,875



3.2

 SAME STORE SG&A AS % REVENUES: 













 Unadjusted 

11.4



11.3







Adjusted (1)

11.2



11.3





 SAME STORE SG&A AS % GROSS PROFIT: 













Unadjusted

75.6



74.5







Adjusted (1)

74.6



74.6





 SAME STORE OPERATING MARGIN %: 













Unadjusted

3.0



3.3







Adjusted (1), (3)

3.3



3.3



















 (1)See the section of this release entitled "Non-GAAP Financial Measures" for information regarding non-GAAP financial measures and certain selected items that the Company believes impact comparability of financial results between reporting periods.

(2)Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $4,268 for the three and six months ended June 30, 2018.

(3)Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $4,022 for the three and six months ended June 30, 2018.

 

Cision View original content:http://www.prnewswire.com/news-releases/group-1-automotive-announces-second-quarter-2018-financial-results-300686850.html

SOURCE Group 1 Automotive, Inc.

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