Market Overview

Group 1 Automotive Reports Record Quarterly Earnings

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Record Revenue and Strong Expense Leverage Help Drive 34.7% Adjusted EPS Increase

HOUSTON, July 23, 2015 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), an international, Fortune 500 automotive retailer, today reported record second quarter 2015 adjusted net income of $47.9 million, a 19.9 percent increase over the prior year. Adjusted diluted earnings per share of $1.98 were also an all-time record for any quarter, and a 34.7 percent increase from the comparable, adjusted prior-year period.

The quarter included non-recurring net after-tax charges of $1.6 million reflecting non-cash asset impairments of $0.8 million, resolution of a prior period legal matter of $0.6 million, losses from flood damage of $0.6 million, and severance costs of $0.2 million, partially offset by a gain on a dealership disposition of $0.6 million. GAAP net income and diluted earnings per share were $46.3 million and $1.91, respectively. Reconciliations of non-GAAP financial measures are included in the attached financial tables.

"We are pleased to report another record-setting quarter," said Earl J. Hesterberg, Group 1's president and chief executive officer. "The combination of continued solid top-line growth in the United States and the United Kingdom, combined with improved expense leverage, delivered all-time record adjusted diluted EPS of $1.98. We are particularly pleased with our 14 percent increase in both U.S. and U.K. Same Store used vehicle sales and the acceleration of our U.S. parts and service revenue, which was up 8 percent on a Same Store basis. Finally, although overall market conditions have continued to deteriorate in Brazil, the combination of our brand profile and cost cutting initiatives allowed us to deliver a pre-tax profit in that market this quarter, which is an impressive accomplishment by our Brazilian operating team."

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

  • Total revenue increased 8.6 percent to an all-time quarterly record of $2.7 billion; total gross profit grew 6.1 percent to $391.6 million. On a constant currency basis, revenues were up 11.7 percent.
  • New vehicle revenue increased 4.7 percent, reflecting 5.4 percent higher unit sales, as U.S. Same Store new vehicle revenue increased 5.2 percent, reflecting unit sales growth of 4.5 percent.
  • Used vehicle retail revenue increased 18.2 percent, primarily reflecting 17.7 percent higher used retail unit sales. U.S. Same Store used vehicle revenue increased 16.1 percent, reflecting 14.2 percent growth in unit sales.
  • Parts and service gross profit increased 9.2 percent on revenue growth of 7.1 percent. U.S. Same Store parts and service gross profit increased 9.3 percent on revenue growth of 8.0 percent.
  • Finance and Insurance (F&I) gross profit increased 16.7 percent, as total retail units sold increased 10.2 percent and F&I per retail unit improved $78 to $1,381, a 6.0 percent increase. U.S. Same Store F&I gross profit grew 13.1 percent, as F&I per retail unit improved $64 to $1,525.
  • Adjusted selling, general and administrative (SG&A) expenses as a percent of gross profit improved 170 basis points, to 71.4 percent. U.S. Same Store adjusted SG&A improved 90 basis points, to a best-quarter-ever level of 69.6 percent. On a GAAP basis, SG&A expenses as a percent of gross profit improved 200 basis points, to 71.7 percent.
  • Adjusted operating margin increased 20 basis points to 3.7 percent. On a GAAP basis, operating margin also grew 20 basis points, to 3.6 percent.

For the six-month period ended June 30, 2015, the Company reported adjusted net income of $83.7 million, or $3.44 per diluted share, compared to adjusted net income of $71.3 million, or $2.66 per diluted share for the same period in the prior year. On a GAAP basis, net income and diluted EPS for the six-month period ended June 30, 2015 were $82.1 million and $3.38, respectively. The Company's total revenue for the six-month period ended June 30, 2015 increased 8.1 percent to $5.2 billion. On a constant currency basis, revenue increased 11.0 percent.

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

  • United States:
    The Company's U.S. revenues were $2.3 billion, an increase of 11.0 percent. The revenue growth was primarily attributed to unit sales increases of 6.3 percent in new vehicles and 18.2 percent in retail used vehicles, as well as an increase of 8.3 percent in parts and service revenue. The higher revenue drove U.S. gross profit growth of 8.0 percent, reflecting the higher new and used retail volumes, expanded parts and service gross margins of 90 basis points, and an F&I gross profit increase of 18.2 percent, driven by an increase in both volume and F&I per retail unit of $93 to $1,535.

    On a comparable basis, adjusted SG&A expenses as a percent of gross profit improved 150 basis points to a best ever 69.8 percent and adjusted operating margin grew 10 basis points to 4.1 percent. The Company's U.S. operations accounted for 83.9 percent of total revenues and 87.3 percent of total gross profit.

  • United Kingdom:
    The Company's U.K. operations accounted for 11.3 percent of total revenues and 8.7 percent of total gross profit. Total revenue increased 22.6 percent (34.7 percent on a constant currency basis) to $308.2 million, and gross profit increased 14.9 percent (26.1 percent on a local currency basis). The gross profit increase was driven by new vehicle retail revenue growth of 21.6 percent, total used vehicle revenue growth of 23.3 percent, parts and service revenue growth of 24.7 percent, and an F&I revenue increase of 28.7 percent. 

    On a comparable basis, adjusted SG&A expenses as a percent of gross profit increased 230 basis points to 77.9 percent and adjusted operating margin was 2.1 percent.

  • Brazil:
    The Company's Brazil operations accounted for 4.8 percent of total revenues and 4.0 percent of total gross profit. Gross profit was $15.5 million, representing an increase of 0.3 percent over prior year on a Same Store constant currency basis.

    Adjusted SG&A expenses as a percent of gross profit improved 420 basis points to 90.9 percent and adjusted operating margin was 0.7 percent, an increase of 40 basis points from the prior year.

Corporate Development

During the second quarter of 2015, the Company disposed of one Audi dealership in South Carolina and terminated two Peugeot franchises in Brazil that generated trailing-twelve-month revenues of approximately $25 million.

Year to date, the Company has acquired two Audi franchises that are expected to generate approximately $240 million in annual revenues and disposed of four franchises that generated trailing-twelve-month revenues of approximately $30 million.

Share Repurchase Authorization

During the quarter, the Company repurchased approximately 208,000 shares at an average price per share of $81.30 for a total of $16.9 million. Year to date, the Company has repurchased approximately 407,000 shares at an average price of $81.46 for a total of $33.1 million. As of June 30, 2015, $66.3 million remains available under the Company's prior common stock share repurchase authorization. Future repurchases may be made from time to time, based on market conditions, legal requirements and other corporate considerations, in the open market or in privately negotiated transactions.

Second Quarter Earnings Conference Call Details

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

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

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

Domestic:

1-888-317-6003

International:

1-412-317-6061

Access Code:

7294157

A telephonic replay will be available following the call through August 28, 2015 at 11:59 p.m. ET by dialing:

Domestic:

1-877-344-7529

International:

1-412-317-0088

Access Code:

10068876

About Group 1 Automotive, Inc. 
Group 1 owns and operates 148 automotive dealerships, 193 franchises, and 38 collision centers in the United States, the United Kingdom and Brazil that offer 32 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service and insurance contracts; provides automotive maintenance and repair services; and sells vehicle parts.

Group 1 Automotive can be reached on the Internet at www.group1auto.com.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements related to future, not past, events and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. In this context, the forward-looking statements often include statements regarding our goals, plans, projections and guidance regarding our financial position, results of operations, market position, pending and potential future acquisitions and business strategy, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should," "foresee," "may" or "will" and similar expressions. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Any such forward-looking statements are not assurances of future performance and involve risks and uncertainties that may cause actual results to differ materially from those set forth in the statements. These risks and uncertainties include, among other things, (a) general economic and business conditions, (b) the level of manufacturer incentives, (c) the future regulatory environment, (d) our ability to obtain an inventory of desirable new and used vehicles, (e) our relationship with our automobile manufacturers and the willingness of manufacturers to approve future acquisitions, (f) our cost of financing and the availability of credit for consumers, (g) our ability to complete acquisitions and dispositions and the risks associated therewith, (h) foreign exchange controls and currency fluctuations, and (i) our ability to retain key personnel. For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with the SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.

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

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

 

Group 1 Automotive, Inc.

Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)








 Three Months Ended June 30, 


2015


2014


% Change

REVENUES:






New vehicle retail sales

$ 1,534,262


$ 1,466,064


4.7

Used vehicle retail sales

682,294


577,250


18.2

Used vehicle wholesale sales

101,512


94,971


6.9

Parts and service

303,193


283,207


7.1

Finance and insurance

105,219


90,146


16.7

Total revenues

2,726,480


2,511,638


8.6







COST OF SALES:






New vehicle retail sales

1,458,132


1,385,218


5.3

Used vehicle retail sales

636,235


531,584


19.7

Used vehicle wholesale sales

102,445


93,730


9.3

Parts and service

138,095


131,958


4.7

Total cost of sales

2,334,907


2,142,490


9.0







GROSS PROFIT

391,573


369,148


6.1







SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

280,568


271,970


3.2







DEPRECIATION AND AMORTIZATION EXPENSE

11,946


10,753


11.1







ASSET IMPAIRMENTS

1,039


1,721


(39.6)







OPERATING INCOME

98,020


84,704


15.7







OTHER EXPENSE:






Floorplan interest expense

(10,015)


(10,329)


(3.0)

Other interest expense, net

(14,228)


(12,567)


13.2

Loss on extinguishment of long-term debt

-


(23,614)


(100.0)

INCOME BEFORE INCOME TAXES

73,777


38,194


93.2







PROVISION FOR INCOME TAXES

(27,467)


(21,332)


28.8







NET INCOME

$      46,310


$      16,862


174.6

Earnings allocated to participating securities

$      (1,792)


$         (619)


189.5

Earnings available to diluted common shares

$      44,518


$      16,243


174.1

DILUTED EARNINGS PER SHARE

$          1.91


$          0.62


208.1

Weighted average dilutive common shares outstanding

23,315


26,242


(11.2)

Weighted average participating securities

944


986


(4.3)

Total weighted average shares outstanding

24,259


27,228


(10.9)












 Six Months Ended June 30, 


2015


2014


% Change

REVENUES:






New vehicle retail sales

$ 2,866,986


$ 2,734,900


4.8

Used vehicle retail sales

1,305,487


1,127,147


15.8

Used vehicle wholesale sales

201,704


184,144


9.5

Parts and service

585,382


552,524


5.9

Finance and insurance

199,775


173,786


15.0

Total revenues

5,159,334


4,772,501


8.1







COST OF SALES:






New vehicle retail sales

2,721,125


2,587,148


5.2

Used vehicle retail sales

1,213,307


1,038,680


16.8

Used vehicle wholesale sales

199,958


179,791


11.2

Parts and service

269,487


259,612


3.8

Total cost of sales

4,403,877


4,065,231


8.3







GROSS PROFIT

755,457


707,270


6.8







SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

552,037


529,528


4.3







DEPRECIATION AND AMORTIZATION EXPENSE

23,630


20,678


14.3







ASSET IMPAIRMENTS

1,039


1,721


(39.6)







OPERATING INCOME

178,751


155,343


15.1







OTHER EXPENSE:






Floorplan interest expense

(19,362)


(21,242)


(8.9)

Other interest expense, net

(28,139)


(23,080)


21.9

Loss on extinguishment of long-term debt

-


(23,614)


(100.0)

INCOME BEFORE INCOME TAXES

131,250


87,407


50.2







PROVISION FOR INCOME TAXES

(49,126)


(39,242)


25.2







NET INCOME

$      82,124


$      48,165


70.5

Earnings allocated to participating securities

$      (3,176)


$      (1,773)


79.1

Earnings available to diluted common shares

$      78,948


$      46,392


70.2

DILUTED EARNINGS PER SHARE

$          3.38


$          1.80


87.8

Weighted average dilutive common shares outstanding

23,380


25,837


(9.5)

Weighted average participating securities

938


974


(3.7)

Total weighted average shares outstanding

24,318


26,811


(9.3)

 

Group 1 Automotive, Inc.

Consolidated Balance Sheets

(Dollars in thousands)










June 30,

2015


December 31,

2014







% Change

 ASSETS: 


(Unaudited)





 CURRENT ASSETS: 







 Cash and cash equivalents 


$         24,225


$            40,975


(40.9)

 Contracts in transit and vehicle receivables, net 


233,888


237,448


(1.5)

 Accounts and notes receivable, net 


144,265


151,330


(4.7)

 Inventories, net 


1,657,105


1,556,705


6.4

 Deferred income taxes 


12,031


11,062


8.8

 Prepaid expenses and other current assets 


27,851


37,699


(26.1)

 Total current assets 


2,099,365


2,035,219


3.2

 PROPERTY AND EQUIPMENT, net 


965,363


950,388


1.6

 GOODWILL AND INTANGIBLE FRANCHISE RIGHTS 


1,219,011


1,134,324


7.5

 OTHER ASSETS 


19,235


21,561


(10.8)

 Total assets 


$    4,302,974


$       4,141,492


3.9








 LIABILITIES AND STOCKHOLDERS' EQUITY: 







 CURRENT LIABILITIES: 







 Floorplan notes payable - credit facility and other 


$    1,205,729


$       1,143,246


5.5

 Offset account related to floorplan notes payable - credit facility 


(22,466)


(39,616)


(43.3)

 Floorplan notes payable - manufacturer affiliates 


308,710


307,656


0.3

 Offset account related to floorplan notes payable - manufacturer affiliates 


(23,300)


(22,500)


3.6

 Current maturities of long-term debt  


76,442


72,630


5.2

 Accounts payable 


304,361


288,320


5.6

 Accrued expenses 


161,123


172,463


(6.6)

 Total current liabilities 


2,010,599


1,922,199


4.6

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


540,666


540,100


0.1

 REAL ESTATE CREDIT FACILITY, net of current maturities 


25,429


27,099


(6.2)

 ACQUISITION LINE 


90,721


69,713


30.1

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


334,736


319,984


4.6

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


50,300


51,941


(3.2)

 DEFERRED INCOME TAXES 


147,818


141,239


4.7

 LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES 


29,020


25,311


14.7

 OTHER LIABILITIES 


69,534


65,896


5.5

 STOCKHOLDERS' EQUITY: 







 Common stock 


258


257


0.4

 Additional paid-in capital 


287,045


286,854


0.1

 Retained earnings 


924,473


852,057


8.5

 Accumulated other comprehensive loss 


(103,341)


(81,984)


26.1

 Treasury stock 


(104,284)


(79,174)


31.7

 Total stockholders' equity 


$    1,004,151


$          978,010


2.7

 Total liabilities and stockholders' equity 


$    4,302,974


$       4,141,492


3.9

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)














Three Months Ended


Six Months Ended




June 30,


June 30,




2015 (%)


2014 (%)


2015 (%)


2014 (%)

NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:








Region

Geographic Market









East

Massachusetts


6.5


5.9


6.2


5.7


Georgia


4.6


4.8


4.6


4.6


New Jersey


2.4


3.7


2.3


3.5


Florida


2.3


1.4


1.8


1.3


New Hampshire


2.0


2.2


1.9


2.2


Louisiana


1.6


1.8


1.6


1.9


Mississippi


1.5


1.5


1.5


1.4


South Carolina


1.4


1.5


1.4


1.4


Alabama


0.7


0.9


0.8


0.8


Maryland


0.5


0.5


0.5


0.5


New York



2.2



2.0




23.5


26.4


22.6


25.3











West

Texas


38.5


34.1


38.6


34.1


California


10.1


9.9


9.8


9.7


Oklahoma


7.5


8.1


7.6


8.3


Kansas


2.1


2.5


2.1


2.5


Louisiana


0.7


0.7


0.7


0.7




58.9


55.3


58.8


55.3











International

United Kingdom


10.5


8.5


10.9


9.2


Brazil


7.1


9.8


7.7


10.2




100.0


100.0


100.0


100.0











NEW VEHICLE UNIT SALES BRAND MIX:









Toyota/Scion/Lexus


26.9


27.2


26.5


26.6

BMW/MINI


11.3


11.7


11.5


11.5

Ford/Lincoln


11.2


10.8


11.6


11.4

Honda/Acura


10.8


11.4


10.8


11.5

Nissan


8.2


9.3


8.7


9.5

Chevrolet/GMC/Buick/Cadillac


7.3


5.4


7.4


5.4

Volkswagen/Audi/Porsche


7.2


6.3


6.6


6.4

Hyundai/Kia


6.4


5.5


6.0


5.5

Chrysler/Dodge/Jeep/RAM


4.8


4.4


4.6


4.5

Mercedes-Benz/smart/Sprinter


4.3


4.4


4.2


4.2

Other


1.6


3.6


2.1


3.5




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,



2015


2014


% Change

REVENUES:







New vehicle retail sales


$    1,279,569


$    1,191,321


7.4

Used vehicle retail sales


572,533


474,075


20.8

Used vehicle wholesale sales


73,493


68,649


7.1

Total used


646,026


542,724


19.0

Parts and service


264,063


243,796


8.3

Finance and insurance


97,789


82,755


18.2

Total


$    2,287,447


$    2,060,596


11.0








GROSS MARGIN %:







New vehicle retail sales


4.6


5.2



Used vehicle retail sales


7.0


8.2



Used vehicle wholesale sales


(0.6)


1.7



Total used


6.2


7.4



Parts and service


55.0


54.1



Finance and insurance


100.0


100.0



Total


15.0


15.4










GROSS PROFIT:







New vehicle retail sales


$         59,434


$         62,096


(4.3)

Used vehicle retail sales


40,301


38,922


3.5

Used vehicle wholesale sales


(457)


1,139


(140.1)

Total used


39,844


40,061


(0.5)

Parts and service


145,117


131,865


10.0

Finance and insurance


97,789


82,755


18.2

Total


$       342,184


$       316,777


8.0








UNITS SOLD:







Retail new vehicles sold


36,882


34,685


6.3

Retail used vehicles sold


26,835


22,707


18.2

Wholesale used vehicles sold


11,265


10,461


7.7

Total used


38,100


33,168


14.9








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$         34,694


$         34,347


1.0

Used vehicle retail


$         21,335


$         20,878


2.2








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$           1,611


$           1,790


(10.0)

Used vehicle retail sales


1,502


1,714


(12.4)

Used vehicle wholesale sales


(41)


109


(137.6)

Total used


1,046


1,208


(13.4)

Finance and insurance (per retail unit)


$           1,535


$           1,442


6.4

OTHER: (1)







SG&A expenses


$       238,964


$       225,898


5.8

SG&A as % revenues


10.4


11.0



SG&A as % gross profit


69.8


71.3



Operating margin %


4.1


4.0



Pretax margin %


3.1


3.0










INTEREST EXPENSE:







Floorplan interest


$         (8,958)


$         (8,361)


7.1

Floorplan assistance


12,583


11,378


10.6

Net floorplan income


$           3,625


$           3,017


20.2

Other interest expense, net


$       (13,073)


$       (11,799)


10.8
























Six Months Ended June 30,



2015


2014


% Change

REVENUES:







New vehicle retail sales


$    2,366,728


$    2,203,873


7.4

Used vehicle retail sales


1,084,506


924,562


17.3

Used vehicle wholesale sales


142,871


133,120


7.3

Total used


1,227,377


1,057,682


16.0

Parts and service


507,007


474,115


6.9

Finance and insurance


184,835


159,552


15.8

Total


$    4,285,947


$    3,895,222


10.0








GROSS MARGIN %:







New vehicle retail sales


4.8


5.1



Used vehicle retail sales


7.5


8.3



Used vehicle wholesale sales


1.2


2.6



Total used


6.7


7.5



Parts and service


54.5


53.6



Finance and insurance


100.0


100.0



Total


15.3


15.6










GROSS PROFIT:







New vehicle retail sales


$       113,121


$       113,031


0.1

Used vehicle retail sales


80,853


76,362


5.9

Used vehicle wholesale sales


1,688


3,395


(50.3)

Total used


82,541


79,757


3.5

Parts and service


276,175


254,168


8.7

Finance and insurance


184,835


159,552


15.8

Total


$       656,672


$       606,508


8.3








UNITS SOLD:







Retail new vehicles sold


68,320


64,632


5.7

Retail used vehicles sold


51,983


45,450


14.4

Wholesale used vehicles sold


21,809


20,411


6.8

Total used


73,792


65,861


12.0








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$         34,642


$         34,099


1.6

Used vehicle retail


$         20,863


$         20,342


2.6








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$           1,656


$           1,749


(5.3)

Used vehicle retail sales


1,555


1,680


(7.4)

Used vehicle wholesale sales


77


166


(53.6)

Total used


1,119


1,211


(7.6)

Finance and insurance (per retail unit)


$           1,536


$           1,449


6.0








OTHER: (1)







SG&A expenses


$       468,937


$       442,294


6.0

SG&A as % revenues


10.9


11.4



SG&A as % gross profit


71.4


72.9



Operating margin %


3.9


3.8



Pretax margin %


2.9


2.8










INTEREST EXPENSE:







 Floorplan interest 


$       (17,476)


$       (16,945)


3.1

 Floorplan assistance 


23,159


21,093


9.8

 Net floorplan income 


$           5,683


$           4,148


37.0

 Other interest expense, net 


$       (25,797)


$       (22,062)


16.9








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

 

Group 1 Automotive, Inc.

Additional Information - U.K.

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended June 30,



2015


2014


% Change


Local Currency
% Change

REVENUES:









New vehicle retail sales


$ 160,245


$ 131,803


21.6


33.6

Used vehicle retail sales


91,172


73,260


24.4


36.8

Used vehicle wholesale sales


25,756


21,549


19.5


31.5

Total used


116,928


94,809


23.3


35.6

Parts and service


25,202


20,211


24.7


37.0

Finance and insurance


5,792


4,501


28.7


41.3

Total


$ 308,167


$ 251,324


22.6


34.7










GROSS MARGIN %:









New vehicle retail sales


6.1


6.9





Used vehicle retail sales


5.4


6.7





Used vehicle wholesale sales


(2.5)


(1.3)





Total used


3.6


4.9





Parts and service


55.8


56.1





Finance and insurance


100.0


100.0





Total


11.0


11.7














GROSS PROFIT:









New vehicle retail sales


$     9,792


$     9,040


8.3


18.7

Used vehicle retail sales


4,894


4,930


(0.7)


9.2

Used vehicle wholesale sales


(632)


(281)


124.9


145.5

Total used


4,262


4,649


(8.3)


0.9

Parts and service


14,070


11,336


24.1


36.4

Finance and insurance


5,792


4,501


28.7


41.3

Total


$   33,916


$   29,526


14.9


26.1










UNITS SOLD:









Retail new vehicles sold


4,686


3,626


29.2



Retail used vehicles sold


3,638


2,720


33.8



Wholesale used vehicles sold


2,956


2,195


34.7



Total used


6,594


4,915


34.2












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$   34,197


$   36,349


(5.9)


3.4

Used vehicle retail


$   25,061


$   26,934


(7.0)


2.3










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$     2,090


$     2,493


(16.2)


(8.2)

Used vehicle retail sales


1,345


1,813


(25.8)


(18.4)

Used vehicle wholesale sales


(214)


(128)


67.2


82.3

Total used


646


946


(31.7)


(24.8)

Finance and insurance (per retail unit)


$        696


$        709


(1.8)


7.7

OTHER: (1)









SG&A expenses


$   26,433


$   22,316


18.4


30.2

SG&A as % revenues


8.6


8.9





SG&A as % gross profit


77.9


75.6





Operating margin %


2.1


2.5





Pretax margin %


1.6


2.2














INTEREST EXPENSE:









Floorplan interest


$      (555)


$      (336)


65.2



Floorplan assistance


198


156


26.9



Net floorplan expense


$      (357)


$      (180)


98.3



Other interest expense, net


$      (824)


$      (509)


61.9


























Six Months Ended June 30,



2015


2014


% Change


Local Currency
% Change

REVENUES:









New vehicle retail sales


$ 311,456


$ 262,404


18.7


30.4

Used vehicle retail sales


180,308


144,737


24.6


36.5

Used vehicle wholesale sales


53,834


41,194


30.7


43.3

Total used


234,142


185,931


25.9


38.0

Parts and service


50,790


41,571


22.2


33.8

Finance and insurance


11,320


9,119


24.1


36.1

Total


$ 607,708


$ 499,025


21.8


33.6










GROSS MARGIN %:









New vehicle retail sales


6.3


6.7





Used vehicle retail sales


5.3


5.9





Used vehicle wholesale sales


(0.6)


0.4





Total used


3.9


4.7





Parts and service


54.7


55.1





Finance and insurance


100.0


100.0





Total


11.2


11.7














GROSS PROFIT:









New vehicle retail sales


$   19,742


$   17,538


12.6


23.8

Used vehicle retail sales


9,532


8,519


11.9


22.8

Used vehicle wholesale sales


(311)


170


(282.9)


(296.2)

Total used


9,221


8,689


6.1


16.5

Parts and service


27,791


22,909


21.3


32.9

Finance and insurance


11,320


9,119


24.1


36.1

Total


$   68,074


$   58,255


16.9


28.2










UNITS SOLD:









Retail new vehicles sold


9,195


7,371


24.7



Retail used vehicles sold


7,281


5,459


33.4



Wholesale used vehicles sold


5,891


4,356


35.2



Total used


13,172


9,815


34.2












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$   33,872


$   35,600


(4.9)


4.6

Used vehicle retail


$   24,764


$   26,513


(6.6)


2.3










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$     2,147


$     2,379


(9.8)


(0.7)

Used vehicle retail sales


1,309


1,561


(16.1)


(7.9)

Used vehicle wholesale sales


(53)


39


(235.9)


(245.1)

Total used


700


885


(20.9)


(13.2)

Finance and insurance (per retail unit)


$        687


$        711


(3.4)


6.0










OTHER:(1)









SG&A expenses


$   53,195


$   44,788


18.8


30.2

SG&A as % revenues


8.8


9.0





SG&A as % gross profit


78.1


76.9





Operating margin %


2.1


2.4





Pretax margin %


1.7


2.0














INTEREST EXPENSE:









 Floorplan interest 


$   (1,065)


$      (769)


38.5



 Floorplan assistance 


383


258


48.4



 Net floorplan expense 


$      (682)


$      (511)


33.5



 Other interest expense, net 


$   (1,559)


$      (960)


62.4












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

 

Group 1 Automotive, Inc.

Additional Information - Brazil

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended June 30,



2015


2014


% Change


Local Currency
% Change

REVENUES:









New vehicle retail sales


$   94,448


$ 142,940


(33.9)


(8.9)

Used vehicle retail sales


18,589


29,915


(37.9)


(14.3)

Used vehicle wholesale sales


2,263


4,773


(52.6)


(34.6)

Total used


20,852


34,688


(39.9)


(17.1)

Parts and service


13,928


19,200


(27.5)


0.1

Finance and insurance


1,638


2,890


(43.3)


(21.9)

Total


$ 130,866


$ 199,718


(34.5)


(9.6)










GROSS MARGIN %:









New vehicle retail sales


7.3


6.8





Used vehicle retail sales


4.6


6.1





Used vehicle wholesale sales


6.9


8.0





Total used


4.9


6.3





Parts and service


42.4


41.9





Finance and insurance


100.0


100.0





Total


11.8


11.4














GROSS PROFIT:









New vehicle retail sales


$     6,904


$     9,710


(28.9)


(2.0)

Used vehicle retail sales


864


1,814


(52.4)


(34.3)

Used vehicle wholesale sales


156


383


(59.3)


(43.9)

Total used


1,020


2,197


(53.6)


(36.0)

Parts and service


5,911


8,048


(26.6)


1.3

Finance and insurance


1,638


2,890


(43.3)


(21.9)

Total


$   15,473


$   22,845


(32.3)


(6.6)










UNITS SOLD:









Retail new vehicles sold


3,197


4,145


(22.9)



Retail used vehicles sold


966


1,294


(25.3)



Wholesale used vehicles sold


406


574


(29.3)



Total used


1,372


1,868


(26.6)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$   29,543


$   34,485


(14.3)


18.1

Used vehicle retail


$   19,243


$   23,118


(16.8)


14.8










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$     2,160


$     2,343


(7.8)


27.1

Used vehicle retail sales


894


1,402


(36.2)


(12.0)

Used vehicle wholesale sales


384


667


(42.4)


(20.7)

Total used


743


1,176


(36.8)


(12.8)

Finance and insurance (per retail unit)


$        393


$        531


(26.0)


2.1

OTHER: (1)









SG&A expenses


$   14,063


$   21,732


(35.3)


(10.7)

SG&A as % revenues


10.7


10.9





SG&A as % gross profit


90.9


95.1





Operating margin %


0.7


0.3





Pretax margin %


-


(0.7)














INTEREST EXPENSE:









 Floorplan interest 


$      (502)


$   (1,632)


(69.2)



 Floorplan assistance 






 Net floorplan expense 


$      (502)


$   (1,632)


(69.2)



 Other interest expense, net 


$      (331)


$      (259)


27.8


























Six Months Ended June 30,



2015


2014


% Change


Local Currency
% Change

REVENUES:









New vehicle retail sales


$ 188,802


$ 268,623


(29.7)


(9.1)

Used vehicle retail sales


40,673


57,848


(29.7)


(9.9)

Used vehicle wholesale sales


4,999


9,830


(49.1)


(35.2)

Total used


45,672


67,678


(32.5)


(13.5)

Parts and service


27,585


36,838


(25.1)


(3.0)

Finance and insurance


3,620


5,115


(29.2)


(8.7)

Total


$ 265,679


$ 378,254


(29.8)


(9.3)










GROSS MARGIN %:









New vehicle retail sales


6.9


6.4





Used vehicle retail sales


4.4


6.2





Used vehicle wholesale sales


7.4


8.0





Total used


4.7


6.5





Parts and service


43.2


43.0





Finance and insurance


100.0


100.0





Total


11.6


11.2














GROSS PROFIT:









New vehicle retail sales


$   12,998


$   17,183


(24.4)


(1.8)

Used vehicle retail sales


1,795


3,586


(49.9)


(36.0)

Used vehicle wholesale sales


369


788


(53.2)


(40.5)

Total used


2,164


4,374


(50.5)


(36.8)

Parts and service


11,929


15,835


(24.7)


(2.7)

Finance and insurance


3,620


5,115


(29.2)


(8.7)

Total


$   30,711


$   42,507


(27.8)


(6.6)










UNITS SOLD:









Retail new vehicles sold


6,489


8,202


(20.9)



Retail used vehicles sold


2,158


2,689


(19.7)



Wholesale used vehicles sold


867


1,247


(30.5)



Total used


3,025


3,936


(23.1)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$   29,096


$   32,751


(11.2)


14.9

Used vehicle retail


$   18,848


$   21,513


(12.4)


12.3










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$     2,003


$     2,095


(4.4)


24.1

Used vehicle retail sales


832


1,334


(37.6)


(20.3)

Used vehicle wholesale sales


426


632


(32.6)


(14.4)

Total used


715


1,111


(35.6)


(17.8)

Finance and insurance (per retail unit)


$        419


$        470


(10.9)


15.0










OTHER: (1)









SG&A expenses


$   28,798


$   40,422


(28.8)


(7.9)

SG&A as % revenues


10.8


10.7





SG&A as % gross profit


93.8


95.1





Operating margin %


0.3


0.3





Pretax margin %


(0.3)


(0.7)














INTEREST EXPENSE:









 Floorplan interest 


$      (821)


$   (3,528)


(76.7)



 Floorplan assistance 






 Net floorplan expense 


$      (821)


$   (3,528)


(76.7)



 Other interest expense, net 


$      (784)


$        (58)


1,251.7












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

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended June 30,



2015


2014


% Change


Local Currency
% Change

REVENUES:









New vehicle retail sales


$    1,534,262


$    1,466,064


4.7


8.2

Used vehicle retail sales


682,294


577,250


18.2


21.0

Used vehicle wholesale sales


101,512


94,971


6.9


10.5

Total used


783,806


672,221


16.6


19.5

Parts and service


303,193


283,207


7.1


9.8

Finance and insurance


105,219


90,146


16.7


18.0

Total


$    2,726,480


$    2,511,638


8.6


11.7










GROSS MARGIN %:









New vehicle retail sales


5.0


5.5





Used vehicle retail sales


6.8


7.9





Used vehicle wholesale sales


(0.9)


1.3





Total used


5.8


7.0





Parts and service


54.5


53.4





Finance and insurance


100.0


100.0





Total


14.4


14.7














GROSS PROFIT:









New vehicle retail sales


$         76,130


$         80,846


(5.8)


(1.4)

Used vehicle retail sales


46,059


45,666


0.9


2.6

Used vehicle wholesale sales


(933)


1,241


(175.2)


(175.2)

Total used


45,126


46,907


(3.8)


(2.1)

Parts and service


165,098


151,249


9.2


11.6

Finance and insurance


105,219


90,146


16.7


18.0

Total


$       391,573


$       369,148


6.1


8.6










UNITS SOLD:









Retail new vehicles sold


44,765


42,456


5.4



Retail used vehicles sold


31,439


26,721


17.7



Wholesale used vehicles sold


14,627


13,230


10.6



Total used


46,066


39,951


15.3












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$         34,274


$         34,531


(0.7)


2.6

Used vehicle retail


$         21,702


$         21,603


0.5


2.8










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$           1,701


$           1,904


(10.7)


(6.5)

Used vehicle retail sales


1,465


1,709


(14.3)


(12.8)

Used vehicle wholesale sales


(64)


94


(168.1)


(168.0)

Total used


980


1,174


(16.5)


(15.1)

Finance and insurance (per retail unit)


$           1,381


$           1,303


6.0


7.2

OTHER: (1)









SG&A expenses


$       279,460


$       269,946


3.5


6.5

SG&A as % revenues


10.2


10.7





SG&A as % gross profit


71.4


73.1





Operating margin %


3.7


3.5





Pretax margin %


2.8


2.6














INTEREST EXPENSE:









 Floorplan interest 


$       (10,015)


$       (10,329)


(3.0)



 Floorplan assistance 


12,781


11,534


10.8



 Net floorplan income 


$           2,766


$           1,205


129.5



 Other interest expense, net 


$       (14,228)


$       (12,567)


13.2


























Six Months Ended June 30,



2015


2014


% Change


Local Currency
% Change

REVENUES:









New vehicle retail sales


$    2,866,986


$    2,734,900


4.8


8.0

Used vehicle retail sales


1,305,487


1,127,147


15.8


18.4

Used vehicle wholesale sales


201,704


184,144


9.5


13.1

Total used


1,507,191


1,311,291


14.9


17.6

Parts and service


585,382


552,524


5.9


8.3

Finance and insurance


199,775


173,786


15.0


16.2

Total


$    5,159,334


$    4,772,501


8.1


11.0










GROSS MARGIN %:









New vehicle retail sales


5.1


5.4





Used vehicle retail sales


7.1


7.8





Used vehicle wholesale sales


0.9


2.4





Total used


6.2


7.1





Parts and service


54.0


53.0





Finance and insurance


100.0


100.0





Total


14.6


14.8














GROSS PROFIT:









New vehicle retail sales


$       145,861


$       147,752


(1.3)


2.7

Used vehicle retail sales


92,180


88,467


4.2


5.8

Used vehicle wholesale sales


1,746


4,353


(59.9)


(58.1)

Total used


93,926


92,820


1.2


2.8

Parts and service


315,895


292,912


7.8


9.9

Finance and insurance


199,775


173,786


15.0


16.2

Total


$       755,457


$       707,270


6.8


9.0










UNITS SOLD:









Retail new vehicles sold


84,004


80,205


4.7



Retail used vehicles sold


61,422


53,598


14.6



Wholesale used vehicles sold


28,567


26,014


9.8



Total used


89,989


79,612


13.0












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$         34,129


$         34,099


0.1


3.1

Used vehicle retail


$         21,254


$         21,030


1.1


3.3










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$           1,736


$           1,842


(5.8)


(2.0)

Used vehicle retail sales


1,501


1,651


(9.1)


(7.7)

Used vehicle wholesale sales


61


167


(63.5)


(61.9)

Total used


1,044


1,166


(10.5)


(9.0)

Finance and insurance (per retail unit)


$           1,374


$           1,299


5.8


6.9










OTHER: (1)









SG&A expenses


$       550,930


$       527,504


4.4


7.0

SG&A as % revenues


10.7


11.1





SG&A as % gross profit


72.9


74.6





Operating margin %


3.5


3.3





Pretax margin %


2.6


2.4














INTEREST EXPENSE:









 Floorplan interest 


$       (19,362)


$       (21,242)


(8.9)



 Floorplan assistance 


23,542


21,351


10.3



 Net floorplan income 


$           4,180


$              109


3,734.9



 Other interest expense, net 


$       (28,139)


$       (23,080)


21.9












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

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)










Three Months Ended June 30,



2015


2014


% Change

REVENUES:







New vehicle retail sales


$ 1,186,659


$ 1,128,008


5.2

Used vehicle retail sales


527,586


454,384


16.1

Used vehicle wholesale sales


65,582


65,332


0.4

Total used


593,168


519,716


14.1

Parts and service


249,437


230,988


8.0

Finance and insurance


91,104


80,567


13.1

Total


$ 2,120,368


$ 1,959,279


8.2








GROSS MARGIN %:







New vehicle retail sales


4.5


5.2



Used vehicle retail sales


7.1


8.3



Used vehicle wholesale sales


(0.2)


1.7



Total used


6.3


7.5



Parts and service


54.7


54.0



Finance and insurance


100.0


100.0



Total


15.0


15.5










GROSS PROFIT:







New vehicle retail sales


$      53,742


$      58,636


(8.3)

Used vehicle retail sales


37,374


37,686


(0.8)

Used vehicle wholesale sales


(134)


1,108


(112.1)

Total used


37,240


38,794


(4.0)

Parts and service


136,362


124,758


9.3

Finance and insurance


91,104


80,567


13.1

Total


$    318,448


$    302,755


5.2








UNITS SOLD:







Retail new vehicles sold


34,657


33,155


4.5

Retail used vehicles sold


25,086


21,973


14.2

Wholesale used vehicles sold


10,472


10,123


3.4

Total used


35,558


32,096


10.8








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$      34,240


$      34,022


0.6

Used vehicle retail


$      21,031


$      20,679


1.7








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$        1,551


$        1,769


(12.3)

Used vehicle retail sales


1,490


1,715


(13.1)

Used vehicle wholesale sales


(13)


109


(111.9)

Total used


1,047


1,209


(13.4)

Finance and insurance (per retail unit)


$        1,525


$        1,461


4.4








OTHER:(2)







SG&A expenses


$    221,615


$    213,316


3.9

SG&A as % revenues


10.5


10.9



SG&A as % gross profit


69.6


70.5



Operating margin %


4.1


4.1


















Six Months Ended June 30,



2015


2014


% Change

REVENUES:







New vehicle retail sales


$ 2,205,332


$ 2,092,306


5.4

Used vehicle retail sales


997,217


887,125


12.4

Used vehicle wholesale sales


130,352


125,494


3.9

Total used


1,127,569


1,012,619


11.4

Parts and service


479,800


449,341


6.8

Finance and insurance


172,181


155,497


10.7

Total


$ 3,984,882


$ 3,709,763


7.4








GROSS MARGIN %:







New vehicle retail sales


4.7


5.1



Used vehicle retail sales


7.5


8.4



Used vehicle wholesale sales


1.4


2.7



Total used


6.8


7.7



Parts and service


54.1


53.5



Finance and insurance


100.0


100.0



Total


15.3


15.7










GROSS PROFIT:







New vehicle retail sales


$    102,648


$    107,195


(4.2)

Used vehicle retail sales


74,536


74,351


0.2

Used vehicle wholesale sales


1,886


3,405


(44.6)

Total used


76,422


77,756


(1.7)

Parts and service


259,483


240,464


7.9

Finance and insurance


172,181


155,497


10.7

Total


$    610,734


$    580,912


5.1








UNITS SOLD:







Retail new vehicles sold


64,336


61,869


4.0

Retail used vehicles sold


48,443


44,034


10.0

Wholesale used vehicles sold


20,308


19,584


3.7

Total used


68,751


63,618


8.1








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$      34,278


$      33,818


1.4

Used vehicle retail


$      20,585


$      20,146


2.2








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$        1,595


$        1,733


(8.0)

Used vehicle retail sales


1,539


1,688


(8.8)

Used vehicle wholesale sales


93


174


(46.6)

Total used


1,112


1,222


(9.0)

Finance and insurance (per retail unit)


$        1,527


$        1,468


4.0








OTHER: (2)







SG&A expenses


$    436,289


$    416,686


4.7

SG&A as % revenues


10.9


11.2



SG&A as % gross profit


71.4


71.7



Operating margin %


3.9


4.0










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


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

 

Group 1 Automotive, Inc.



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



(Unaudited)



(Dollars in thousands, except per unit amounts)














Three Months Ended June 30,



2015


2014


% Change


Local Currency
% Change

REVENUES:









New vehicle retail sales


$ 134,107


$ 131,804


1.7


11.8

Used vehicle retail sales


75,449


73,260


3.0


13.2

Used vehicle wholesale sales


20,062


21,549


(6.9)


2.4

Total used


95,511


94,809


0.7


10.7

Parts and service


19,723


20,206


(2.4)


7.2

Finance and insurance


4,934


4,500


9.6


20.3

Total


$ 254,275


$ 251,319


1.2


11.2










GROSS MARGIN %:









New vehicle retail sales


6.0


6.9





Used vehicle retail sales


5.3


6.7





Used vehicle wholesale sales


(2.5)


(1.3)





Total used


3.7


4.9





Parts and service


57.6


56.1





Finance and insurance


100.0


100.0





Total


10.9


11.7














GROSS PROFIT:









New vehicle retail sales


$     8,010


$     9,041


(11.4)


(2.9)

Used vehicle retail sales


4,029


4,930


(18.3)


(10.1)

Used vehicle wholesale sales


(497)


(281)


76.9


92.8

Total used


3,532


4,649


(24.0)


(16.3)

Parts and service


11,359


11,331


0.2


10.1

Finance and insurance


4,934


4,500


9.6


20.3

Total


$   27,835


$   29,521


(5.7)


3.5










UNITS SOLD:









Retail new vehicles sold


4,025


3,626


11.0



Retail used vehicles sold


3,104


2,720


14.1



Wholesale used vehicles sold


2,441


2,195


11.2



Total used


5,545


4,915


12.8












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$   33,319


$   36,350


(8.3)


0.7

Used vehicle retail


$   24,307


$   26,934


(9.8)


(0.8)










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$     1,990


$     2,493


(20.2)


(12.5)

Used vehicle retail sales


1,298


1,813


(28.4)


(21.2)

Used vehicle wholesale sales


(204)


(128)


59.4


73.3

Total used


637


946


(32.7)


(25.8)

Finance and insurance (per retail unit)


$        692


$        709


(2.4)


7.1

OTHER: 









SG&A expenses


$   21,689


$   22,314


(2.8)


6.8

SG&A as % revenues


8.5


8.9





SG&A as % gross profit


77.9


75.6





Operating margin %


2.1


2.5






















Six Months Ended June 30,



2015


2014


% Change


Local Currency
% Change

REVENUES:









New vehicle retail sales


$ 258,169


$ 262,406


(1.6)


8.1

Used vehicle retail sales


148,512


144,736


2.6


12.4

Used vehicle wholesale sales


40,864


41,194


(0.8)


8.8

Total used


189,376


185,930


1.9


11.6

Parts and service


39,904


41,566


(4.0)


5.1

Finance and insurance


9,754


9,118


7.0


17.3

Total


$ 497,203


$ 499,020


(0.4)


9.3










GROSS MARGIN %:









New vehicle retail sales


6.3


6.7





Used vehicle retail sales


5.3


5.9





Used vehicle wholesale sales


(0.3)


0.4





Total used


4.1


4.7





Parts and service


56.6


55.1





Finance and insurance


100.0


100.0





Total


11.3


11.7














GROSS PROFIT:









New vehicle retail sales


$   16,136


$   17,540


(8.0)


1.2

Used vehicle retail sales


7,819


8,518


(8.2)


0.8

Used vehicle wholesale sales


(120)


170


(170.6)


(173.9)

Total used


7,699


8,688


(11.4)


(2.7)

Parts and service


22,582


22,904


(1.4)


8.0

Finance and insurance


9,754


9,118


7.0


17.3

Total


$   56,171


$   58,250


(3.6)


5.8










UNITS SOLD:









Retail new vehicles sold


7,844


7,371


6.4



Retail used vehicles sold


6,149


5,459


12.6



Wholesale used vehicles sold


4,818


4,356


10.6



Total used


10,967


9,815


11.7












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$   32,913


$   35,600


(7.5)


1.6

Used vehicle retail


$   24,152


$   26,513


(8.9)


(0.2)










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$     2,057


$     2,380


(13.6)


(4.9)

Used vehicle retail sales


1,272


1,560


(18.5)


(10.5)

Used vehicle wholesale sales


(25)


39


(164.1)


(166.8)

Total used


702


885


(20.7)


(12.9)

Finance and insurance (per retail unit)


$        697


$        711


(2.0)


7.6










OTHER: 









SG&A expenses


$   43,313


$   44,786


(3.3)


6.0

SG&A as % revenues


8.7


9.0





SG&A as % gross profit


77.1


76.9





Operating margin %


2.3


2.4














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

 

Group 1 Automotive, Inc.



Additional Information - Same Store Brazil (1)



(Unaudited)



(Dollars in thousands, except per unit amounts)














Three Months Ended June 30,



2015


2014


% Change


Local Currency
% Change

REVENUES:









New vehicle retail sales


$   89,804


$ 133,825


(32.9)


(7.5)

Used vehicle retail sales


18,492


28,564


(35.3)


(10.7)

Used vehicle wholesale sales


2,240


3,848


(41.8)


(19.8)

Total used


20,732


32,412


(36.0)


(11.8)

Parts and service


13,794


16,927


(18.5)


12.5

Finance and insurance


1,612


2,593


(37.8)


(14.3)

Total


$ 125,942


$ 185,757


(32.2)


(6.5)










GROSS MARGIN %:









New vehicle retail sales


7.3


6.5





Used vehicle retail sales


4.7


6.0





Used vehicle wholesale sales


7.0


7.6





Total used


4.9


6.2





Parts and service


42.5


43.2





Finance and insurance


100.0


100.0





Total


11.9


11.1














GROSS PROFIT:









New vehicle retail sales


$     6,513


$     8,712


(25.2)


3.1

Used vehicle retail sales


862


1,727


(50.1)


(31.3)

Used vehicle wholesale sales


157


294


(46.6)


(26.7)

Total used


1,019


2,021


(49.6)


(30.6)

Parts and service


5,864


7,307


(19.7)


10.7

Finance and insurance


1,612


2,593


(37.8)


(14.3)

Total


$   15,008


$   20,633


(27.3)


0.3










UNITS SOLD:









Retail new vehicles sold


3,110


3,688


(15.7)



Retail used vehicles sold


959


1,197


(19.9)



Wholesale used vehicles sold


404


461


(12.4)



Total used


1,363


1,658


(17.8)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$   28,876


$   36,287


(20.4)


9.7

Used vehicle retail


$   19,283


$   23,863


(19.2)


11.4










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$     2,094


$     2,362


(11.3)


22.2

Used vehicle retail sales


899


1,443


(37.7)


(14.2)

Used vehicle wholesale sales


389


638


(39.0)


(16.3)

Total used


748


1,219


(38.6)


(15.6)

Finance and insurance (per retail unit)


$        396


$        531


(25.4)


2.9










OTHER:(2)









SG&A expenses


$   13,569


$   19,133


(29.1)


(2.2)

SG&A as % revenues


10.8


10.3





SG&A as % gross profit


90.4


92.7





Operating margin %


0.7


0.5






















Six Months Ended June 30,



2015


2014


% Change


Local Currency
% Change

REVENUES:









New vehicle retail sales


$ 181,959


$ 251,039


(27.5)


(6.4)

Used vehicle retail sales


40,534


54,748


(26.0)


(5.1)

Used vehicle wholesale sales


4,974


7,983


(37.7)


(20.7)

Total used


45,508


62,731


(27.5)


(7.1)

Parts and service


27,334


32,662


(16.3)


8.3

Finance and insurance


3,578


4,569


(21.7)


1.0

Total


$ 258,379


$ 351,001


(26.4)


(5.0)










GROSS MARGIN %:









New vehicle retail sales


6.9


6.1





Used vehicle retail sales


4.4


6.1





Used vehicle wholesale sales


7.4


7.7





Total used


4.8


6.3





Parts and service


43.3


44.3





Finance and insurance


100.0


100.0





Total


11.6


10.9














GROSS PROFIT:









New vehicle retail sales


$   12,514


$   15,389


(18.7)


5.5

Used vehicle retail sales


1,802


3,367


(46.5)


(31.6)

Used vehicle wholesale sales


370


612


(39.5)


(23.3)

Total used


2,172


3,979


(45.4)


(30.4)

Parts and service


11,829


14,467


(18.2)


5.6

Finance and insurance


3,578


4,569


(21.7)


1.0

Total


$   30,093


$   38,404


(21.6)


1.3










UNITS SOLD:









Retail new vehicles sold


6,363


7,281


(12.6)



Retail used vehicles sold


2,151


2,458


(12.5)



Wholesale used vehicles sold


864


989


(12.6)



Total used


3,015


3,447


(12.5)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$   28,596


$   34,479


(17.1)


7.1

Used vehicle retail


$   18,844


$   22,273


(15.4)


8.5










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$     1,967


$     2,114


(7.0)


20.7

Used vehicle retail sales


838


1,370


(38.8)


(21.9)

Used vehicle wholesale sales


428


619


(30.9)


(12.2)

Total used


720


1,154


(37.6)


(20.4)

Finance and insurance (per retail unit)


$        420


$        469


(10.4)


15.5










OTHER: (2)









SG&A expenses


$   27,519


$   35,460


(22.4)


0.4

SG&A as % revenues


10.7


10.1





SG&A as % gross profit


91.4


92.3





Operating margin %


0.6


0.6














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


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

 

Group 1 Automotive, Inc.



Additional Information - Same Store Consolidated (1)



(Unaudited)



(Dollars in thousands, except per unit amounts)














Three Months Ended June 30,



2015


2014


% Change


Local Currency
% Change

REVENUES:









New vehicle retail sales


$ 1,410,570


$ 1,393,637


1.2


4.6

Used vehicle retail sales


621,527


556,208


11.7


14.3

Used vehicle wholesale sales


87,884


90,729


(3.1)


Total used


709,411


646,937


9.7


12.3

Parts and service


282,954


268,121


5.5


8.2

Finance and insurance


97,650


87,660


11.4


12.6

Total


$ 2,500,585


$ 2,396,355


4.3


7.4










GROSS MARGIN %:









New vehicle retail sales


4.8


5.5





Used vehicle retail sales


6.8


8.0





Used vehicle wholesale sales


(0.5)


1.2





Total used


5.9


7.0





Parts and service


54.3


53.5





Finance and insurance


100.0


100.0





Total


14.4


14.7














GROSS PROFIT:









New vehicle retail sales


$      68,265


$      76,389


(10.6)


(6.4)

Used vehicle retail sales


42,265


44,343


(4.7)


(3.0)

Used vehicle wholesale sales


(474)


1,121


(142.3)


(141.0)

Total used


41,791


45,464


(8.1)


(6.4)

Parts and service


153,585


143,396


7.1


9.4

Finance and insurance


97,650


87,660


11.4


12.6

Total


$    361,291


$    352,909


2.4


4.8










UNITS SOLD:









Retail new vehicles sold


41,792


40,469


3.3



Retail used vehicles sold


29,149


25,890


12.6



Wholesale used vehicles sold


13,317


12,779


4.2



Total used


42,466


38,669


9.8












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$      33,752


$      34,437


(2.0)


1.3

Used vehicle retail


$      21,322


$      21,484


(0.7)


1.6










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$        1,633


$        1,888


(13.5)


(9.4)

Used vehicle retail sales


1,450


1,713


(15.4)


(13.9)

Used vehicle wholesale sales


(36)


88


(140.9)


(139.4)

Total used


984


1,176


(16.3)


(14.8)

Finance and insurance (per retail unit)


$        1,376


$        1,321


4.2


5.4










OTHER:(2)









SG&A expenses


$    256,874


$    254,764


0.8


3.7

SG&A as % revenues


10.3


10.6





SG&A as % gross profit


71.1


72.2





Operating margin %


3.7


3.7






















Six Months Ended June 30,



2015


2014


% Change


Local Currency
% Change

REVENUES:









New vehicle retail sales


$ 2,645,460


$ 2,605,751


1.5


4.5

Used vehicle retail sales


1,186,263


1,086,609


9.2


11.5

Used vehicle wholesale sales


176,190


174,671


0.9


3.9

Total used


1,362,453


1,261,280


8.0


10.5

Parts and service


547,038


523,569


4.5


6.7

Finance and insurance


185,513


169,184


9.7


10.8

Total


$ 4,740,464


$ 4,559,784


4.0


6.7










GROSS MARGIN %:









New vehicle retail sales


5.0


5.4





Used vehicle retail sales


7.1


7.9





Used vehicle wholesale sales


1.2


2.4





Total used


6.3


7.2





Parts and service


53.7


53.1





Finance and insurance


100.0


100.0





Total


14.7


14.9














GROSS PROFIT:









New vehicle retail sales


$    131,298


$    140,124


(6.3)


(2.5)

Used vehicle retail sales


84,157


86,236


(2.4)


(0.9)

Used vehicle wholesale sales


2,136


4,187


(49.0)


(46.8)

Total used


86,293


90,423


(4.6)


(3.1)

Parts and service


293,894


277,835


5.8


7.8

Finance and insurance


185,513


169,184


9.7


10.8

Total


$    696,998


$    677,566


2.9


5.0










UNITS SOLD:









Retail new vehicles sold


78,543


76,521


2.6



Retail used vehicles sold


56,743


51,951


9.2



Wholesale used vehicles sold


25,990


24,929


4.3



Total used


82,733


76,880


7.6












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$      33,682


$      34,053


(1.1)


1.8

Used vehicle retail


$      20,906


$      20,916



2.1










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$        1,672


$        1,831


(8.7)


(5.0)

Used vehicle retail sales


1,483


1,660


(10.7)


(9.3)

Used vehicle wholesale sales


82


168


(51.2)


(48.9)

Total used


1,043


1,176


(11.3)


(9.9)

Finance and insurance (per retail unit)


$        1,371


$        1,317


4.1


5.2










OTHER: (2)









SG&A expenses


$    507,121


$    496,933


2.1


4.5

SG&A as % revenues


10.7


10.9





SG&A as % gross profit


72.8


73.3





Operating margin %


3.5


3.5














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


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

 

Group 1 Automotive, Inc.

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

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended June 30,



2015


2014


% Change

SG&A RECONCILIATION:







As reported

$ 239,863


$ 227,506


5.4


  Pre-tax adjustments:







   Catastrophic events 

(951)


(1,676)




   Gain (loss) on real estate and dealership transactions 

1,052


510




   Legal settlements 

(1,000)


(442)




Adjusted SG&A (1)

$ 238,964


$ 225,898


5.8








SG&A AS % REVENUES:







Unadjusted

10.5


11.0




Adjusted (1)

10.4


11.0



SG&A AS % GROSS PROFIT:







Unadjusted

70.1


71.8




Adjusted (1)

69.8


71.3



OPERATING MARGIN %







Unadjusted

4.0


3.8




Adjusted (1), (2)

4.1


4.0



PRETAX MARGIN %:







Unadjusted

3.0


1.7




Adjusted (1), (3)

3.1


3.0










SAME STORE SG&A RECONCILIATION:














As reported

$ 223,930


$ 215,434


3.9


  Pre-tax adjustments:







   Catastrophic events 

(951)


(1,676)




   Gain (loss) on real estate and dealership transactions 

(364)


-




   Legal settlements 

(1,000)


(442)




Adjusted Same Store SG&A (1)

$ 221,615


$ 213,316


3.9








SAME STORE SG&A AS % REVENUES:







Unadjusted

10.6


11.0




Adjusted (1)

10.5


10.9



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

70.3


71.2




Adjusted (1)

69.6


70.5



SAME STORE OPERATING MARGIN %







Unadjusted

4.0


3.9




Adjusted (1), (4)

4.1


4.1


















 Six Months Ended June 30, 



2015


2014


 % Change 

SG&A RECONCILIATION:







As reported

$ 469,836


$ 443,902


5.8


  Pre-tax adjustments:







   Catastrophic events 

(951)


(1,676)




   Gain (loss) on real estate and dealership transactions 

1,052


510




   Legal settlements 

(1,000)


(442)




Adjusted SG&A (1)

$ 468,937


$ 442,294


6.0








SG&A AS % REVENUES:







Unadjusted

11.0


11.4




Adjusted (1)

10.9


11.4



SG&A AS % OF GROSS PROFIT:







Unadjusted

71.5


73.2




Adjusted (1)

71.4


72.9



OPERATING MARGIN %:







 Unadjusted 

3.9


3.7




Adjusted (1), (2)

3.9


3.8



PRETAX MARGIN %:







Unadjusted

2.9


2.1




Adjusted (1), (3)

2.9


2.8










SAME STORE SG&A RECONCILIATION:














As reported

$ 438,604


$ 418,804


4.7


  Pre-tax adjustments:







   Catastrophic events 

(951)


(1,676)




   Gain (loss) on real estate and dealership transactions 

(364)


-




   Legal settlements 

(1,000)


(442)




Adjusted Same Store SG&A (1)

$ 436,289


$ 416,686


4.7








SAME STORE SG&A AS % REVENUES:







Unadjusted

11.0


11.3




Adjusted (1)

10.9


11.2



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

71.8


72.1




Adjusted (1)

71.4


71.7



SAME STORE OPERATING MARGIN %







Unadjusted

3.8


3.9




Adjusted (1), (4)

3.9


4.0










(1)

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



(2)

Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $498 for the three and six months ended June 30, 2015 and $1,721 for the three and six months ended June 30, 2014.



(3)

Excludes the impact of SG&A reconciling items above, as well as loss on redemption of long-term debt of $23,614 for the three and six months ended June 30, 2014, non-cash asset impairment charges of $498 for the three and six months ended June 30, 2015, and non-cash asset impairment charges of $1,721 for the three and six months ended June 30, 2014.



(4)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $498 for the three and six months ended June 30, 2015 and $1,721 for the three and six months ended June 30, 2014. 

 

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,



2015


2014


% Change

SG&A RECONCILIATION:







As reported

$ 26,641


$ 22,316


19.4


  Pre-tax adjustments:







   Severance costs 

(208)


-




Adjusted SG&A (1)

$ 26,433


$ 22,316


18.4








SG&A AS % REVENUES:







Unadjusted

8.6


8.9




Adjusted (1)

8.6


8.9



SG&A AS % GROSS PROFIT:







Unadjusted

78.5


75.6




Adjusted (1)

77.9


75.6



OPERATING MARGIN %







Unadjusted

2.0


2.5




Adjusted (1), (2)

2.1


2.5



PRETAX MARGIN %:







Unadjusted

1.6


2.2




Adjusted (1), (2)

1.6


2.2


















 Six Months Ended June 30, 



2015


2014


 % Change 

SG&A RECONCILIATION:














As reported

$ 53,403


$ 44,788


19.2


  Pre-tax adjustments:







   Severance costs 

(208)


-




Adjusted SG&A (1)

$ 53,195


$ 44,788


18.8








SG&A AS % REVENUES:







Unadjusted

8.8


9.0




Adjusted (1)

8.8


9.0



SG&A AS % OF GROSS PROFIT:







Unadjusted

78.4


76.9




Adjusted (1)

78.1


76.9



OPERATING MARGIN %:







Unadjusted

2.1


2.4




Adjusted (1), (2)

2.1


2.4



PRETAX MARGIN %:







Unadjusted

1.6


2.0




Adjusted (1), (2)

1.7


2.0










(1)

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



(2)

Excludes the impact of SG&A reconciling item above.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Brazil

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended June 30,



2015


2014


% Change

SG&A RECONCILIATION:







As reported

$ 14,063


$ 22,148


(36.5)


  Pre-tax adjustments:







   Foreign transaction tax 

-


(416)




Adjusted SG&A (1)

$ 14,063


$ 21,732


(35.3)








SG&A AS % REVENUES:







Unadjusted

10.7


11.1




Adjusted (1)

10.7


10.9



SG&A AS % GROSS PROFIT:







Unadjusted

90.9


96.9




Adjusted (1)

90.9


95.1



OPERATING MARGIN %







Unadjusted

0.3


0.1




Adjusted (1), (2)

0.7


0.3



PRETAX MARGIN %:







Unadjusted

(0.4)


(0.9)




Adjusted (1), (2)

-


(0.7)










SAME STORE SG&A RECONCILIATION:














As reported

$ 13,569


$ 19,549


(30.6)


  Pre-tax adjustments:







   Foreign transaction tax 

-


(416)




Adjusted Same Store SG&A (1)

$ 13,569


$ 19,133


(29.1)








SAME STORE SG&A AS % REVENUES:







Unadjusted

10.8


10.5




Adjusted (1)

10.8


10.3



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

90.4


94.7




Adjusted (1)

90.4


92.7



SAME STORE OPERATING MARGIN %







Unadjusted

0.7


0.3




Adjusted (1), (3)

0.7


0.5


















 Six Months Ended June 30, 



2015


2014


 % Change 

SG&A RECONCILIATION:







As reported

$ 28,798


$ 40,838


(29.5)


  Pre-tax adjustments:







   Foreign transaction tax 

-


(416)




Adjusted SG&A (1)

$ 28,798


$ 40,422


(28.8)








SG&A AS % REVENUES:







Unadjusted

10.8


10.8




Adjusted (1)

10.8


10.7



SG&A AS % OF GROSS PROFIT:







Unadjusted

93.8


96.1




Adjusted (1)

93.8


95.1



OPERATING MARGIN %:







Unadjusted

0.1


0.1




Adjusted (1), (2)

0.3


0.3



PRETAX MARGIN %:







Unadjusted

(0.5)


(0.8)




Adjusted (1), (2)

(0.3)


(0.7)










SAME STORE SG&A RECONCILIATION:














As reported

$ 27,519


$ 35,876


(23.3)


  Pre-tax adjustments:







   Foreign transaction tax 

-


(416)




Adjusted Same Store SG&A (1)

$ 27,519


$ 35,460


(22.4)








SAME STORE SG&A AS % REVENUES:







Unadjusted

10.7


10.2




Adjusted (1)

10.7


10.1



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

91.4


93.4




Adjusted (1)

91.4


92.3



SAME STORE OPERATING MARGIN %







Unadjusted

0.6


0.4




Adjusted (1), (3)

0.6


0.6










(1)

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



(2)

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



(3)

Excludes the impact of SG&A reconciling items above.

 

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,



2015


2014


% Change








NET INCOME RECONCILIATION:







As reported

$   46,310


$   16,862


174.6


  Pre-tax adjustments:







   Catastrophic events (5)

593


1,039




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

(601)


(316)




   Severance costs (7)

167


-




   Legal settlements (8)

610


274




   Foreign transaction tax (9)

-


274




   Non-cash asset impairment (10)

848


1,067




   Loss on extinguishment of long-term debt (11)

-


20,778




Adjusted net income (1)

$   47,927


$   39,978


19.9








ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED







COMMON SHARES RECONCILIATION:







Adjusted net income

$   47,927


$   39,978


19.9


Less: Adjusted earnings allocated to participating securities

1,855


1,456


27.4


Adjusted net income available to diluted common shares

$   46,072


$   38,522


19.6








 DILUTED INCOME PER COMMON SHARE RECONCILIATION: 







As reported

$       1.91


$       0.62


208.1


  Pre-tax adjustments:







   Catastrophic events  

0.02


0.04




   Gain (loss) on real estate and dealership transactions  

(0.03)


(0.01)




   Severance costs  

0.01


-




   Legal settlements  

0.03


0.01




   Foreign transaction tax  

-


0.01




   Non-cash asset impairment  

0.04


0.04




   Loss on extinguishment of long-term debt  

-


0.76




Adjusted diluted income per share (1)

$       1.98


$       1.47


34.7








SG&A RECONCILIATION:







As reported

$ 280,567


$ 271,970


3.2


  Pre-tax adjustments:







   Catastrophic events  

(951)


(1,676)




   Gain (loss) on real estate and dealership transactions  

1,052


510




   Severance costs  

(208)


-




   Legal settlements  

(1,000)


(442)




   Foreign transaction tax  

-


(416)




Adjusted SG&A (1)

$ 279,460


$ 269,946


3.5








SG&A AS % REVENUES:







Unadjusted

10.3


10.8




Adjusted (1)

10.2


10.7



SG&A AS % GROSS PROFIT:







Unadjusted

71.7


73.7




Adjusted (1)

71.4


73.1



OPERATING MARGIN %







Unadjusted

3.6


3.4




Adjusted (1), (2)

3.7


3.5



PRETAX MARGIN %:







Unadjusted

2.7


1.5




Adjusted (1), (2)

2.8


2.6










SAME STORE SG&A RECONCILIATION:







As reported

$ 259,189


$ 257,298


0.7


  Pre-tax adjustments:







   Catastrophic events  

(951)


(1,676)




   Gain (loss) on real estate and dealership transactions  

(364)


-




   Legal settlements  

(1,000)


(442)




   Foreign transaction tax  

-


(416)




Adjusted Same Store SG&A (1)

$ 256,874


$ 254,764


0.8








SAME STORE SG&A AS % REVENUES:







Unadjusted

10.4


10.7




Adjusted (1)

10.3


10.6



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

71.7


72.9




Adjusted (1)

71.1


72.2



SAME STORE OPERATING MARGIN %







Unadjusted

3.6


3.5




Adjusted (1), (4)

3.7


3.7


















 Six Months Ended June 30, 



2015


2014


 % Change 

NET INCOME RECONCILIATION:







As reported

$   82,124


$   48,165


70.5


  Pre-tax adjustments:







  Catastrophic events (5)

593


1,039




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

(601)


(316)




  Severance costs (7)

167


-




  Legal settlements (8)

610


274




  Foreign transaction tax (9)

-


274




  Non-cash asset impairment (10)

848


1,067




  Loss on extinguishment of long-term debt (11)

-


20,778




Adjusted net income (1)

$   83,741


$   71,281


17.5








ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED







COMMON SHARES RECONCILIATION:







Adjusted net income

$   83,741


$   71,281


17.5


Less: Adjusted earnings allocated to participating securities

3,238


2,613


23.9


Adjusted net income available to diluted common shares

$   80,503


$   68,668


17.2








 DILUTED INCOME PER COMMON SHARE RECONCILIATION: 







As reported

$       3.38


$       1.80


87.8


  Pre-tax adjustments:







   Catastrophic events  

0.02


0.04




   Gain (loss) on real estate and dealership transactions  

(0.02)


(0.01)




   Severance costs  

0.01


-




   Legal settlements  

0.02


0.01




   Foreign transaction tax  

-


0.01




   Non-cash asset impairment  

0.03


0.04




   Loss on extinguishment of long-term debt  

-


0.77




Adjusted diluted income per share (1)

$       3.44


$       2.66


29.3















SG&A RECONCILIATION:







As reported

$ 552,037


$ 529,528


4.3


  Pre-tax adjustments:







   Catastrophic events  

(951)


(1,676)




   Gain (loss) on real estate and dealership transactions  

1,052


510




   Severance costs  

(208)


-




   Legal settlements  

(1,000)


(442)




   Foreign transaction tax  

-


(416)




Adjusted SG&A (1)

$ 550,930


$ 527,504


4.4








SG&A AS % REVENUES:







Unadjusted

10.7


11.1




Adjusted (1)

10.7


11.1



SG&A AS % OF GROSS PROFIT:







Unadjusted

73.1


74.9




Adjusted (1)

72.9


74.6



OPERATING MARGIN %:







Unadjusted

3.5


3.3




Adjusted (1), (2)

3.5


3.3



PRETAX MARGIN %:







Unadjusted

2.5


1.8




Adjusted (1), (2)

2.6


2.4










SAME STORE SG&A RECONCILIATION:







As reported

$ 509,436


$ 499,467


2.0


  Pre-tax adjustments:







   Catastrophic events  

(951)


(1,676)




   Gain (loss) on real estate and dealership transactions  

(364)


-




   Legal settlements  

(1,000)


(442)




   Foreign transaction tax  

-


(416)




Adjusted Same Store SG&A (1)

$ 507,121


$ 496,933


2.1








SAME STORE SG&A AS % REVENUES:







Unadjusted

10.7


11.0




Adjusted (1)

10.7


10.9



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

73.1


73.7




Adjusted (1)

72.8


73.3



SAME STORE OPERATING MARGIN %







Unadjusted

3.5


3.4




Adjusted (1), (4)

3.5


3.5










(1)

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



(2)

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



(3)

Excludes the impact of SG&A reconciling items above, non-cash asset impairment charges for all periods, as well as loss on redemption of long-term debt of $23,614 for the three and six months ended June 30, 2014.



(4)

 Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $498 for the three and six months ended June 30, 2015, and $1,721 for the three and six months ended June 30, 2014. 



(5)

 Adjustment is net of tax benefit of $359 for the three and six months ended June 30, 2015, and $637 for the three and six months ended June 30, 2014, calculated utilizing the applicable federal and state tax rates for adjustment. 



(6)

 Adjustment is net of tax provision of $452 for the three and six months ended June 30, 2015, and $194 for the three and six months ended June 30, 2014, calculated utilizing the applicable federal and state tax rates for adjustment. 



(7)

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



(8)

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



(9)

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



(10)

 Adjustment is net of tax benefit of $191 for the three and six months ended June 30, 2015, and $654 and for the three and six months ended June 30, 2014, calculated utilizing the applicable federal and state tax rates for adjustment. 



(11)

 Adjustment is net of tax benefit of $2,836 for the three and six months ended June 30, 2014, calculated utilizing the applicable federal and state tax rates for adjustment. 

 

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SOURCE Group 1 Automotive, Inc.

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