Market Overview

Group 1 Automotive Reports Record Adjusted 2016 First Quarter Earnings

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Earnings Increase Driven by Strong Used Vehicle and Service Sales Growth

HOUSTON, April 27, 2016 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), an international, Fortune 500 automotive retailer, today reported record 2016 first quarter adjusted net income of $37.1 million, a 3.5 percent increase, and record first quarter adjusted diluted earnings per common share of $1.59, an 8.2 percent increase, on a year-over-year comparable basis for the period ended March 31, 2016.

Adjusted net income and diluted earnings per share primarily exclude $1.7 million of net after-tax adjustments for insurance deductibles associated with vehicle damage from hailstorms in the U.S., and approximately $800 thousand related to the decision to divest four stores in Brazil. On a GAAP basis, reported net income for the quarter was $34.3 million and diluted earnings per common share were $1.47. Reconciliations of non-GAAP financial measures are included in the attached financial tables.

"We are pleased with this quarter's consolidated top-line revenue growth of 9.7 percent on a local currency basis, which was driven by strong performance from our U.K. team and impressive used vehicle and service growth in our U.S. operations," said Earl J. Hesterberg, Group 1's president and chief executive officer. "The revenue growth, coupled with stability in U.S. vehicle margins allowed us to grow adjusted net income and earnings for the quarter. Additionally, given the tremendous value we saw in our recent stock price, we executed an aggressive share repurchase program, buying approximately 1.5 million shares since the end of last year."

Mr. Hesterberg also commented, "The Brazilian auto market dropped another 28 percent in Q1 due to massive political turmoil, yet our Brazilian operations held Same Store revenue flat on a local currency basis—an amazing performance. Additionally, we implemented a significant set of portfolio enhancement actions this quarter, which include the divesture of four underperforming stores and the addition of four growth franchises. These actions should largely conclude our store restructuring program and better position us to maintain profitability in Brazil this year."

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

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

  • Total revenue increased 7.2 percent (9.7 percent on a constant exchange basis) to a first-quarter record of $2.6 billion; total gross profit grew 6.9 percent (8.6 percent) to $389.1 million.
  • New vehicle revenues increased 5.8 percent (8.5 percent) on 3.9 percent higher unit sales. New vehicle gross profit increased 2.9 percent (5.9 percent) to $71.7 million.
  • Retail used vehicle revenues increased 10.4 percent (12.6 percent) on 9.4 percent higher unit sales. Retail used vehicle gross profit improved 6.7 percent (7.8 percent) to $49.2 million as lower margins, down $38 per unit, partially offset the quarter's revenue growth.
  • Parts and service gross profit increased 10.5 percent (12.2 percent) on revenue growth of 9.4 percent (11.4 percent). Same Store parts and service gross profit increased 6.5 percent (8.0 percent) on revenue growth of 5.4 percent (7.3 percent).
  • Same Store Finance and Insurance (F&I) gross profit per retail unit (PRU) increased 0.7 percent (1.6 percent) to $1,385 per retail unit. U.S. F&I gross profit per unit increased $26 to a best ever record of $1,564.
  • Adjusted Selling, General and Administrative (SG&A) expenses as a percent of gross profit increased 20 basis points to 74.8 percent.

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

  • United States:
    The Company's U.S. revenues were $2.1 billion, an increase of 4.2 percent. The revenue growth reflects a 6.7 percent increase in retail used vehicles unit sales, as well as increases of 8.4 percent in parts and service revenue and 3.6 percent in finance and insurance revenue. This sales performance delivered gross profit growth of 5.8 percent, reflecting an 80 basis point improvement in parts and service gross margin, as well as the aforementioned growth in F&I PRU. Adjusted SG&A expenses as a percent of gross profit increased 30 basis points to 73.4 percent and adjusted operating margin was flat at 3.7 percent. The Company's U.S. operations accounted for 79.8 percent of total revenues and 85.5 percent of total gross profit.
  • United Kingdom:
    The Company's U.K. operations accounted for 16.6 percent of total revenues and 12.0 percent of total gross profit. Total revenue increased 44.2 percent (52.4 percent) to $431.9 million, and gross profit increased 36.9 percent (44.6 percent). Revenue growth was primarily driven by 63.2 and 26.1 percent increases in new and used vehicle retail unit sales, respectively. On a Same Store basis, adjusted SG&A expenses as a percent of gross profit improved 370 basis points to 74.6 percent.
  • Brazil:
    The Company's Brazilian operations accounted for 3.6 percent of total revenues and 2.5 percent of total gross profit. Brazil's new vehicle industry volumes declined roughly 28 percent due to continued weakness in the local economy, while the Company's Same Store new vehicle revenue was only down 6.2 percent on a constant exchange basis. Total Same Store revenue was only down 0.4 percent on a local currency basis as strong growth in used retail and parts and service mostly offset the decline in new vehicle sales.

Corporate Development

As previously announced, the Company acquired 15 franchises in the U.K. during February 2016. In April 2016, the Company acquired 2 franchises in Brazil, which include BMW and Toyota, and also began operations at the Land Rover and Jaguar open point that had been awarded last year. These acquisitions are expected to generate $595 million in estimated annual revenues.

As previously announced, the Company has disposed of a Volkswagen franchise and Toyota franchise in the U.S. Year to date, the Company has also disposed of 3 stores in Brazil, which include two Nissan franchises and a Peugeot franchise, with plans to dispose of another Peugeot store later this year. These franchises represented approximately $110 million of annual revenues.

Share Repurchase Authorization

During the first quarter of 2016, the Company repurchased 576,230 shares at an average price of $55.44 for a total of $31.9 million. Thus far in April 2016, the Company has repurchased an additional 911,207 shares at an average price of $54.87 for a total of $50.0 million. As of April 27, 2016, $68.1 million remains available under the Company's prior common stock share repurchase authorization. Purchases may be made from time to time in the open market or in privately negotiated transactions, based on market conditions, legal requirements and other corporate considerations and subject to Board approval and covenant restrictions.

First Quarter Earnings Conference Call Details

The Company's senior management will host a conference call today at 10 a.m. ET to discuss the first 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: 

6811652

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

Domestic:

1-877-344-7529

International:

1-412-317-0088

Replay ID: 

10083995

ABOUT GROUP 1 AUTOMOTIVE, INC.

Group 1 owns and operates 162 automotive dealerships, 213 franchises, and 37 collision centersin the United States, the United Kingdom and Brazil that offer 34 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

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

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

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

 

Group 1 Automotive, Inc.

Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)








 Three Months Ended March 31, 


2016


2015


% Increase/
(Decrease)

REVENUES:






New vehicle retail sales

$   1,409,851


$   1,332,724


5.8

Used vehicle retail sales

688,171


623,193


10.4

Used vehicle wholesale sales

101,592


100,192


1.4

Parts and service

308,592


282,189


9.4

Finance and insurance

100,149


94,556


5.9

Total revenues

2,608,355


2,432,854


7.2







COST OF SALES:






New vehicle retail sales

1,338,124


1,262,993


5.9

Used vehicle retail sales

638,971


577,072


10.7

Used vehicle wholesale sales

100,143


97,513


2.7

Parts and service

142,016


131,392


8.1

Total cost of sales

2,219,254


2,068,970


7.3







GROSS PROFIT

389,101


363,884


6.9







SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

293,664


271,469


8.2







DEPRECIATION AND AMORTIZATION EXPENSE

12,464


11,684


6.7







ASSET IMPAIRMENTS

932



100.0







OPERATING INCOME

82,041


80,731


1.6







OTHER EXPENSE:






Floorplan interest expense

(11,010)


(9,348)


17.8

Other interest expense, net

(16,929)


(13,911)


21.7

INCOME BEFORE INCOME TAXES

54,102


57,472


(5.9)







PROVISION FOR INCOME TAXES

(19,811)


(21,657)


(8.5)







NET INCOME

$        34,291


$        35,815


(4.3)

Less: Earnings allocated to participating securities

$          1,348


$          1,388


(2.9)

Earnings available to diluted common shares

$        32,943


$        34,427


(4.3)

DILUTED EARNINGS PER SHARE

$            1.47


$            1.47


Weighted average dilutive common shares outstanding

22,453


23,446


(4.2)

Weighted average participating securities

921


932


(1.2)

Total weighted average shares outstanding

23,374


24,378


(4.1)

 

Group 1 Automotive, Inc.

Consolidated Balance Sheets

(Unaudited)

(Dollars in thousands)










March 31,
2016


December 31,
2015


% Increase/
(Decrease)

 ASSETS: 







 CURRENT ASSETS: 







 Cash and cash equivalents 


$      22,381


$          13,037


71.7

 Contracts in transit and vehicle receivables, net 


209,542


252,438


(17.0)

 Accounts and notes receivable, net 


154,162


157,768


(2.3)

 Inventories, net 


1,826,531


1,737,751


5.1

 Prepaid expenses and other current assets 


41,463


27,376


51.5

 Total current assets 


2,254,079


2,188,370


3.0

 PROPERTY AND EQUIPMENT, net 


1,063,852


1,033,981


2.9

 GOODWILL AND INTANGIBLE FRANCHISE RIGHTS 


1,206,188


1,162,503


3.8

 OTHER ASSETS 


9,727


11,862


(18.0)

 Total assets 


$ 4,533,846


$     4,396,716


3.1








 LIABILITIES AND STOCKHOLDERS' EQUITY: 







 CURRENT LIABILITIES: 







 Floorplan notes payable - credit facility and other 


$ 1,239,792


$     1,265,719


(2.0)

 Offset account related to floorplan notes payable - credit facility 


(104,081)


(110,759)


(6.0)

 Floorplan notes payable - manufacturer affiliates 


437,672


389,071


12.5

 Offset account related to floorplan notes payable - manufacturer affiliates 


(30,000)


(25,500)


17.6

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


37,506


54,991


(31.8)

 Accounts payable 


327,594


280,423


16.8

 Accrued expenses 


194,870


185,323


5.2

 Total current liabilities 


2,103,353


2,039,268


3.1

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


539,309


538,933


0.1

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


295,186


295,156


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


375,144


317,290


18.2

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


47,040


48,155


(2.3)

 DEFERRED INCOME TAXES 


138,984


136,644


1.7

 LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES 


43,122


31,153


38.4

 OTHER LIABILITIES 


78,915


71,865


9.8

 STOCKHOLDERS' EQUITY: 







 Common stock 


257


257


 Additional paid-in capital 


283,196


291,092


(2.7)

 Retained earnings 


955,326


926,169


3.1

 Accumulated other comprehensive loss 


(144,856)


(137,984)


5.0

 Treasury stock 


(181,130)


(161,282)


12.3

 Total stockholders' equity 


912,793


918,252


(0.6)

 Total liabilities and stockholders' equity 


$ 4,533,846


$     4,396,716


3.1

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)










Three Months Ended




March 31,




2016 (%)


2015 (%)

NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:




Region

Geographic Market





East

Massachusetts


5.0


5.8


Georgia


3.8


4.7


Florida


2.4


1.3


New Hampshire


1.7


1.7


New Jersey


1.6


2.2


Mississippi


1.5


1.6


Louisiana


1.4


1.6


South Carolina


1.4


1.4


Alabama


0.8


0.8


Maryland


0.4


0.5




20.0


21.6







West

Texas


37.0


38.5


California


9.0


9.4


Oklahoma


7.2


7.7


Kansas


1.8


2.2


Louisiana


0.6


0.7




55.6


58.5







International

United Kingdom


18.0


11.5


Brazil


6.4


8.4




100.0


100.0







NEW VEHICLE UNIT SALES BRAND MIX:





Toyota/Scion/Lexus


23.8


26.1

BMW/MINI


13.1


11.7

Ford/Lincoln


11.5


12.0

Volkswagen/Audi/Porsche


10.6


6.0

Honda/Acura


10.5


10.7

Nissan


7.9


9.3

Chevrolet/GMC/Buick/Cadillac


7.8


7.5

Hyundai/Kia


4.7


5.7

Chrysler/Dodge/Jeep/RAM


4.0


4.5

Mercedes-Benz/smart/Sprinter


3.7


4.1

Other


2.4


2.4




100.0


100.0

 

Group 1 Automotive, Inc.

Additional Information - U.S.

(Unaudited)

(Dollars in thousands, except per unit amounts)










Three Months Ended March 31,



2016


2015


% Increase/
(Decrease)

REVENUES:







New vehicle retail sales


$   1,100,393


$   1,087,159


1.2

Used vehicle retail sales


558,764


511,973


9.1

Used vehicle wholesale sales


68,873


69,378


(0.7)

Total used


627,637


581,351


8.0

Parts and service


263,458


242,944


8.4

Finance and insurance


90,145


87,046


3.6

Total


$   2,081,633


$   1,998,500


4.2








GROSS MARGIN %:







New vehicle retail sales


4.9


4.9



Used vehicle retail sales


7.8


7.9



Used vehicle wholesale sales


1.2


3.1



Total used


7.1


7.3



Parts and service


54.7


53.9



Finance and insurance


100.0


100.0



Total


16.0


15.7










GROSS PROFIT:







New vehicle retail sales


$        54,146


$        53,687


0.9

Used vehicle retail sales


43,455


40,552


7.2

Used vehicle wholesale sales


844


2,145


(60.7)

Total used


44,299


42,697


3.8

Parts and service


144,120


131,058


10.0

Finance and insurance


90,145


87,046


3.6

Total


$      332,710


$      314,488


5.8








UNITS SOLD:







Retail new vehicles sold


30,801


31,438


(2.0)

Retail used vehicles sold


26,831


25,148


6.7

Wholesale used vehicles sold


10,413


10,544


(1.2)

Total used


37,244


35,692


4.3








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$        35,726


$        34,581


3.3

Used vehicle retail


$        20,825


$        20,358


2.3








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$          1,758


$          1,708


2.9

Used vehicle retail sales


1,620


1,613


0.4

Used vehicle wholesale sales


81


203


(60.1)

Total used


1,189


1,196


(0.6)

Finance and insurance (per retail unit)


$          1,564


$          1,538


1.7

OTHER: (1)







SG&A expenses


$      244,086


$      229,972


6.1

SG&A as % revenues


11.7


11.5



SG&A as % gross profit


73.4


73.1



Operating margin %


3.7


3.7



Pretax margin %


2.5


2.7










INTEREST EXPENSE:







Floorplan interest expense


$      (10,049)


$        (8,518)


18.0

Floorplan assistance


11,251


10,576


6.4

Net floorplan income


$          1,202


$          2,058


(41.6)

Other interest expense, net


$      (15,513)


$      (12,724)


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 - U.K.

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended March 31,



2016


2015


% Increase/
(Decrease)


Local Currency
% Increase/
(Decrease)

REVENUES:









New vehicle retail sales


$  246,536


$  151,211


63.0


72.1

Used vehicle retail sales


110,117


89,136


23.5


30.8

Used vehicle wholesale sales


32,032


28,078


14.1


20.8

Total used


142,149


117,214


21.3


28.4

Parts and service


34,549


25,588


35.0


43.0

Finance and insurance


8,662


5,528


56.7


65.7

Total


$  431,896


$  299,541


44.2


52.4










GROSS MARGIN %:









New vehicle retail sales


5.6


6.6





Used vehicle retail sales


4.7


5.2





Used vehicle wholesale sales


1.8


1.1





Total used


4.1


4.2





Parts and service


53.4


53.6





Finance and insurance


100.0


100.0





Total


10.8


11.4














GROSS PROFIT:









New vehicle retail sales


$    13,854


$      9,950


39.2


46.6

Used vehicle retail sales


5,210


4,638


12.3


18.9

Used vehicle wholesale sales


572


321


78.2


88.3

Total used


5,782


4,959


16.6


23.4

Parts and service


18,448


13,721


34.5


42.3

Finance and insurance


8,662


5,528


56.7


65.7

Total


$    46,746


$    34,158


36.9


44.6










UNITS SOLD:









Retail new vehicles sold


7,358


4,509


63.2



Retail used vehicles sold


4,595


3,643


26.1



Wholesale used vehicles sold


3,642


2,935


24.1



Total used


8,237


6,578


25.2












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$    33,506


$    33,535


(0.1)


5.5

Used vehicle retail


$    23,965


$    24,468


(2.1)


3.7










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$      1,883


$      2,207


(14.7)


(10.2)

Used vehicle retail sales


1,134


1,273


(10.9)


(5.7)

Used vehicle wholesale sales


157


109


44.0


51.7

Total used


702


754


(6.9)


(1.4)

Finance and insurance (per retail unit)


$         725


$         678


6.9


13.0

OTHER: (1)









SG&A expenses


$    36,875


$    26,762


37.8


45.9

SG&A as % revenues


8.5


8.9





SG&A as % gross profit


78.9


78.3





Operating margin %


1.9


2.1





Pretax margin %


1.4


1.7














INTEREST EXPENSE:









Floorplan interest expense


$        (920)


$        (510)


80.4


91.3

Floorplan assistance


263


185


42.2


50.4

Net floorplan expense


$        (657)


$        (325)


102.2


114.6

Other interest expense, net


$     (1,282)


$        (735)


74.4


84.7


(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 - Brazil

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended March 31,



2016


2015


% Increase/
(Decrease)


Local Currency
% Increase/
(Decrease)

REVENUES:









New vehicle retail sales


$   62,922


$      94,354


(33.3)


(9.1)

Used vehicle retail sales


19,290


22,084


(12.7)


20.3

Used vehicle wholesale sales


687


2,736


(74.9)


(65.3)

Total used


19,977


24,820


(19.5)


10.9

Parts and service


10,585


13,657


(22.5)


5.6

Finance and insurance


1,342


1,982


(32.3)


(7.3)

Total


$   94,826


$    134,813


(29.7)


(3.9)










GROSS MARGIN %:









New vehicle retail sales


5.9


6.5





Used vehicle retail sales


2.8


4.2





Used vehicle wholesale sales


4.8


7.8





Total used


2.8


4.6





Parts and service


37.9


44.1





Finance and insurance


100.0


100.0





Total


10.2


11.3














GROSS PROFIT:









New vehicle retail sales


$     3,727


$        6,094


(38.8)


(16.3)

Used vehicle retail sales


535


931


(42.5)


(19.5)

Used vehicle wholesale sales


33


213


(84.5)


(78.7)

Total used


568


1,144


(50.3)


(30.5)

Parts and service


4,008


6,018


(33.4)


(9.0)

Finance and insurance


1,342


1,982


(32.3)


(7.3)

Total


$     9,645


$      15,238


(36.7)


(13.3)










UNITS SOLD:









Retail new vehicles sold


2,622


3,292


(20.4)



Retail used vehicles sold


1,365


1,192


14.5



Wholesale used vehicles sold


311


461


(32.5)



Total used


1,676


1,653


1.4












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$   23,998


$      28,662


(16.3)


14.1

Used vehicle retail


$   14,132


$      18,527


(23.7)


5.1










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$     1,421


$        1,851


(23.2)


5.1

Used vehicle retail sales


392


781


(49.8)


(29.7)

Used vehicle wholesale sales


106


462


(77.1)


(68.4)

Total used


339


692


(51.0)


(31.5)

Finance and insurance (per retail unit)


$        337


$           442


(23.8)


4.2

OTHER: (1)









SG&A expenses


$   10,019


$      14,735


(32.0)


(6.9)

SG&A as % revenues


10.6


10.9





SG&A as % gross profit


103.9


96.7





Operating margin %


(0.7)






Pretax margin %


(0.9)


(0.6)














INTEREST EXPENSE:









 Floorplan interest expense 


$         (41)


$         (320)


(87.2)


(81.2)

 Floorplan assistance 




-


-

 Net floorplan expense 


$         (41)


$         (320)


(87.2)


(81.2)

 Other interest expense, net 


$       (134)


$         (452)


(70.4)


(59.2)


(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 March 31,



2016


2015


% Increase/
(Decrease)


Local Currency
% Increase/
(Decrease)

REVENUES:









New vehicle retail sales


$   1,409,851


$   1,332,724


5.8


8.5

Used vehicle retail sales


688,171


623,193


10.4


12.6

Used vehicle wholesale sales


101,592


100,192


1.4


3.5

Total used


789,763


723,385


9.2


11.4

Parts and service


308,592


282,189


9.4


11.4

Finance and insurance


100,149


94,556


5.9


7.0

Total


$   2,608,355


$   2,432,854


7.2


9.7










GROSS MARGIN %:









New vehicle retail sales


5.1


5.2





Used vehicle retail sales


7.1


7.4





Used vehicle wholesale sales


1.4


2.7





Total used


6.4


6.7





Parts and service


54.0


53.4





Finance and insurance


100.0


100.0





Total


14.9


15.0














GROSS PROFIT:









New vehicle retail sales


$        71,727


$        69,731


2.9


5.9

Used vehicle retail sales


49,200


46,121


6.7


7.8

Used vehicle wholesale sales


1,449


2,679


(45.9)


(44.3)

Total used


50,649


48,800


3.8


4.9

Parts and service


166,576


150,797


10.5


12.2

Finance and insurance


100,149


94,556


5.9


7.0

Total


$      389,101


$      363,884


6.9


8.6










UNITS SOLD:









Retail new vehicles sold


40,781


39,239


3.9



Retail used vehicles sold


32,791


29,983


9.4



Wholesale used vehicles sold


14,366


13,940


3.1



Total used


47,157


43,923


7.4












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$        34,571


$        33,964


1.8


4.4

Used vehicle retail


$        20,987


$        20,785


1.0


3.0










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$          1,759


$          1,777


(1.0)


1.9

Used vehicle retail sales


1,500


1,538


(2.5)


(1.4)

Used vehicle wholesale sales


101


192


(47.4)


(45.9)

Total used


1,074


1,111


(3.3)


(2.3)

Finance and insurance (per retail unit)


$          1,361


$          1,366


(0.4)


0.6

OTHER: (1)









SG&A expenses


$      290,980


$      271,469


7.2


9.4

SG&A as % revenues


11.2


11.2





SG&A as % gross profit


74.8


74.6





Operating margin %


3.3


3.3





Pretax margin %


2.2


2.4














INTEREST EXPENSE:









 Floorplan interest expense 


$      (11,010)


$        (9,348)


17.8


18.6

 Floorplan assistance 


11,514


10,761


7.0


7.0

 Net floorplan expense 


$             504


$          1,413


(64.3)


(69.5)

 Other interest expense, net 


$      (16,929)


$      (13,911)


21.7


22.6


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

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)










Three Months Ended March 31,



2016


2015


% Increase/
(Decrease)

REVENUES:







New vehicle retail sales


$   1,061,126


$   1,068,403


(0.7)

Used vehicle retail sales


538,622


502,064


7.3

Used vehicle wholesale sales


65,078


67,380


(3.4)

Total used


603,700


569,444


6.0

Parts and service


254,955


237,698


7.3

Finance and insurance


87,598


86,106


1.7

Total


$   2,007,379


$   1,961,651


2.3








GROSS MARGIN %:







New vehicle retail sales


4.9


4.9



Used vehicle retail sales


7.8


8.0



Used vehicle wholesale sales


1.7


3.1



Total used


7.1


7.4



Parts and service


54.7


54.0



Finance and insurance


100.0


100.0



Total


16.0


15.8










GROSS PROFIT:







New vehicle retail sales


$        51,842


$        52,647


(1.5)

Used vehicle retail sales


41,795


40,009


4.5

Used vehicle wholesale sales


1,091


2,110


(48.3)

Total used


42,886


42,119


1.8

Parts and service


139,381


128,286


8.6

Finance and insurance


87,598


86,106


1.7

Total


$      321,707


$      309,158


4.1








UNITS SOLD:







Retail new vehicles sold


29,972


30,939


(3.1)

Retail used vehicles sold


26,148


24,761


5.6

Wholesale used vehicles sold


10,112


10,356


(2.4)

Total used


36,260


35,117


3.3








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$        35,404


$        34,533


2.5

Used vehicle retail


$        20,599


$        20,276


1.6








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$          1,730


$          1,702


1.6

Used vehicle retail sales


1,598


1,616


(1.1)

Used vehicle wholesale sales


108


204


(47.1)

Total used


1,183


1,199


(1.3)

Finance and insurance (per retail unit)


$          1,561


$          1,546


1.0








OTHER:(2)







SG&A expenses


$      235,287


$      224,342


4.9

SG&A as % revenues


11.7


11.4



SG&A as % gross profit


73.1


72.6



Operating margin %


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) 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 March 31,



2016


2015


% Increase/
(Decrease)


Local Currency
% Increase/
(Decrease)

REVENUES:









New vehicle retail sales


$  172,612


$  151,211


14.2


20.4

Used vehicle retail sales


91,515


89,136


2.7


8.6

Used vehicle wholesale sales


24,788


28,078


(11.7)


(6.6)

Total used


116,303


117,214


(0.8)


5.0

Parts and service


25,737


25,588


0.6


6.5

Finance and insurance


6,687


5,528


21.0


27.8

Total


$  321,339


$  299,541


7.3


13.3










GROSS MARGIN %:









New vehicle retail sales


6.0


6.6





Used vehicle retail sales


4.9


5.2





Used vehicle wholesale sales


2.4


1.1





Total used


4.3


4.2





Parts and service


54.5


53.6





Finance and insurance


100.0


100.0





Total


11.2


11.4














GROSS PROFIT:









New vehicle retail sales


$    10,291


$      9,952


3.4


8.9

Used vehicle retail sales


4,442


4,637


(4.2)


1.3

Used vehicle wholesale sales


587


320


83.4


93.7

Total used


5,029


4,957


1.5


7.3

Parts and service


14,030


13,721


2.3


8.2

Finance and insurance


6,687


5,528


21.0


27.8

Total


$    36,037


$    34,158


5.5


11.4










UNITS SOLD:









Retail new vehicles sold


5,121


4,509


13.6



Retail used vehicles sold


3,896


3,643


6.9



Wholesale used vehicles sold


3,039


2,935


3.5



Total used


6,935


6,578


5.4












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$    33,707


$    33,535


0.5


6.0

Used vehicle retail


$    23,489


$    24,468


(4.0)


1.6










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$      2,010


$      2,207


(8.9)


(4.1)

Used vehicle retail sales


1,140


1,273


(10.4)


(5.2)

Used vehicle wholesale sales


193


109


77.1


87.1

Total used


725


754


(3.8)


1.8

Finance and insurance (per retail unit)


$         742


$         678


9.4


15.6

OTHER:  (2)









SG&A expenses


$    26,899


$    26,763


0.5


6.4

SG&A as % revenues


8.4


8.9





SG&A as % gross profit


74.6


78.3





Operating margin %


2.5


2.1






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


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

 

Group 1 Automotive, Inc.



Additional Information - Same Store Brazil (1)



(Unaudited)



(Dollars in thousands, except per unit amounts)














Three Months Ended March 31,



2016


2015


% Increase/
(Decrease)


Local Currency
% Increase/
(Decrease)

REVENUES:









New vehicle retail sales


$  62,170


$    90,439


(31.3)


(6.2)

Used vehicle retail sales


18,922


20,705


(8.6)


26.2

Used vehicle wholesale sales


587


2,379


(75.3)


(65.6)

Total used


19,509


23,084


(15.5)


16.7

Parts and service


10,307


12,728


(19.0)


10.5

Finance and insurance


1,332


1,927


(30.9)


(5.2)

Total


$  93,318


$  128,178


(27.2)


(0.4)










GROSS MARGIN %:









New vehicle retail sales


6.1


6.5





Used vehicle retail sales


3.0


4.2





Used vehicle wholesale sales


6.0


7.6





Total used


3.1


4.5





Parts and service


38.1


44.7





Finance and insurance


100.0


100.0





Total


10.3


11.3














GROSS PROFIT:









New vehicle retail sales


$    3,789


$      5,868


(35.4)


(11.7)

Used vehicle retail sales


566


863


(34.4)


(7.6)

Used vehicle wholesale sales


35


181


(80.7)


(72.7)

Total used


601


1,044


(42.4)


(18.9)

Parts and service


3,923


5,695


(31.1)


(5.8)

Finance and insurance


1,332


1,927


(30.9)


(5.2)

Total


$    9,645


$    14,534


(33.6)


(9.1)










UNITS SOLD:









Retail new vehicles sold


2,559


3,079


(16.9)



Retail used vehicles sold


1,317


1,070


23.1



Wholesale used vehicles sold


291


384


(24.2)



Total used


1,608


1,454


10.6












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$  24,295


$    29,373


(17.3)


12.8

Used vehicle retail


$  14,368


$    19,350


(25.8)


2.5










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$    1,481


$      1,906


(22.3)


6.2

Used vehicle retail sales


430


807


(46.7)


(24.9)

Used vehicle wholesale sales


120


471


(74.5)


(64.0)

Total used


374


718


(47.9)


(26.6)

Finance and insurance (per retail unit)


$       344


$         464


(25.9)


1.5










OTHER:(2)









SG&A expenses


$    9,760


$    12,776


(23.6)


4.8

SG&A as % revenues


10.5


10.0





SG&A as % gross profit


101.2


87.9





Operating margin %


(0.4)


1.1






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


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

 

Group 1 Automotive, Inc.



Additional Information - Same Store Consolidated (1)



(Unaudited)



(Dollars in thousands, except per unit amounts)














Three Months Ended March 31,



2016


2015


% Increase/
(Decrease)


Local Currency
% Increase/
(Decrease)

REVENUES:









New vehicle retail sales


$  1,295,908


$  1,310,053


(1.1)


1.4

Used vehicle retail sales


649,059


611,905


6.1


8.1

Used vehicle wholesale sales


90,453


97,837


(7.5)


(5.8)

Total used


739,512


709,742


4.2


6.2

Parts and service


290,999


276,014


5.4


7.3

Finance and insurance


95,617


93,561


2.2


3.1

Total


$  2,422,036


$  2,389,370


1.4


3.6










GROSS MARGIN %:









New vehicle retail sales


5.1


5.2





Used vehicle retail sales


7.2


7.4





Used vehicle wholesale sales


1.9


2.7





Total used


6.6


6.8





Parts and service


54.1


53.5





Finance and insurance


100.0


100.0





Total


15.2


15.0














GROSS PROFIT:









New vehicle retail sales


$       65,922


$       68,467


(3.7)


(0.9)

Used vehicle retail sales


46,803


45,509


2.8


3.9

Used vehicle wholesale sales


1,713


2,611


(34.4)


(32.6)

Total used


48,516


48,120


0.8


1.9

Parts and service


157,334


147,702


6.5


8.0

Finance and insurance


95,617


93,561


2.2


3.1

Total


$     367,389


$     357,850


2.7


4.2










UNITS SOLD:









Retail new vehicles sold


37,652


38,527


(2.3)



Retail used vehicles sold


31,361


29,474


6.4



Wholesale used vehicles sold


13,442


13,675


(1.7)



Total used


44,803


43,149


3.8












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$       34,418


$       34,004


1.2


3.7

Used vehicle retail


$       20,696


$       20,761


(0.3)


1.6










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$         1,751


$         1,777


(1.5)


1.4

Used vehicle retail sales


1,492


1,544


(3.4)


(2.3)

Used vehicle wholesale sales


127


191


(33.5)


(31.4)

Total used


1,083


1,115


(2.9)


(1.8)

Finance and insurance (per retail unit)


$         1,385


$         1,376


0.7


1.6










OTHER:(2)









SG&A expenses


$     271,946


$     263,881


3.1


5.0

SG&A as % revenues


11.2


11.0





SG&A as % gross profit


74.0


73.7





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 March 31,



2016


2015


% Increase/
(Decrease)

SG&A RECONCILIATION:







As reported

$  245,838


$  229,972


6.9


  Pre-tax adjustments:







   Catastrophic events 

(2,655)





   Gain (loss) on real estate and dealership transactions 

933





   Acquisition costs 

(30)





Adjusted SG&A (1)

$  244,086


$  229,972


6.1








SG&A AS % REVENUES:







Unadjusted

11.8


11.5




Adjusted (1)

11.7


11.5



SG&A AS % GROSS PROFIT:







Unadjusted

73.9


73.1




Adjusted (1)

73.4


73.1



OPERATING MARGIN %







Unadjusted

3.6


3.7




Adjusted (1), (2)

3.7


3.7



PRETAX MARGIN %:







Unadjusted

2.4


2.7




Adjusted (1), (3)

2.5


2.7










SAME STORE SG&A RECONCILIATION:







As reported

$  238,106


$  224,342


6.1


  Pre-tax adjustments:







   Catastrophic events 

(2,655)





   Gain (loss) on real estate and dealership transactions 

(134)





   Acquisition costs 

(30)





Adjusted Same Store SG&A (1)

$  235,287


$  224,342


4.9








SAME STORE SG&A AS % REVENUES:







Unadjusted

11.9


11.4




Adjusted (1)

11.7


11.4



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

74.0


72.6




Adjusted (1)

73.1


72.6



SAME STORE OPERATING MARGIN %







Unadjusted

3.6


3.8




Adjusted (1), (3)

3.8


3.8





(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 $510 for the three months ended March 31, 2016.



(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $510 for the three months ended March 31, 2016.

 

Group 1 Automotive, Inc.

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

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended March 31,



2016


2015


% Increase/
(Decrease)

SG&A RECONCILIATION:







As reported

$  37,436


$  26,762


39.9


  Pre-tax adjustments:







   Acquisition costs 

(561)





Adjusted SG&A (1)

$  36,875


$  26,762


37.8








SG&A AS % REVENUES:







Unadjusted

8.7


8.9




Adjusted (1)

8.5


8.9



SG&A AS % GROSS PROFIT:







Unadjusted

80.1


78.3




Adjusted (1)

78.9


78.3



OPERATING MARGIN %







Unadjusted

1.8


2.1




Adjusted (1), (2)

1.9


2.1



PRETAX MARGIN %:







Unadjusted

1.3


1.7




Adjusted (1), (2)

1.4


1.7










SAME STORE SG&A RECONCILIATION:







As reported

$  27,460


$  26,763


2.6


  Pre-tax adjustments:







   Acquisition costs 

(561)





Adjusted Same Store SG&A (1)

$  26,899


$  26,763


0.5








SAME STORE SG&A AS % REVENUES:







Unadjusted

8.5


8.9




Adjusted (1)

8.4


8.9



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

76.2


78.3




Adjusted (1)

74.6


78.3



SAME STORE OPERATING MARGIN %







Unadjusted

2.3


2.1




Adjusted (1), (3)

2.5


2.1





(1)

We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items.  These adjusted measures are not measures of financial performance under 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.



(3)

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

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Brazil

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended March 31,



2016


2015


% Increase/
(Decrease)

SG&A RECONCILIATION:







As reported

$  10,390


$  14,735


(29.5)


  Pre-tax adjustments:







   Gain (loss) on real estate and dealership transactions 

(371)





Adjusted SG&A (1)

$  10,019


$  14,735


(32.0)








SG&A AS % REVENUES:







Unadjusted

11.0


10.9




Adjusted (1)

10.6


10.9



SG&A AS % GROSS PROFIT:







Unadjusted

107.7


96.7




Adjusted (1)

103.9


96.7



OPERATING MARGIN %







Unadjusted

(1.5)





Adjusted (1), (2)

(0.7)




PRETAX MARGIN %:







Unadjusted

(1.7)


(0.6)




Adjusted (1), (2)

(0.9)


(0.6)










SAME STORE OPERATING MARGIN %







Unadjusted

(0.9)


1.1




Adjusted (1), (3)

(0.4)


1.1





(1)

We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items.  These adjusted measures are not measures of financial performance under 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 $423 for the three months ended March 31, 2016.



(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $423 for the three months ended March 31, 2016.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - CONSOLIDATED

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended March 31,



2016


2015


% Increase/
(Decrease)








NET (LOSS) INCOME RECONCILIATION:







As reported

$    34,291


$    35,815


(4.3)


  Pre-tax adjustments:







  Catastrophic events (4)

1,659





  (Gain) loss on real estate and dealership transactions (5)

212





  Acquisition costs including related tax impact (6)

578





  Non-cash asset impairment (7)

315





Adjusted net income (1)

$    37,055


$    35,815


3.5








ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED







COMMON SHARES RECONCILIATION:







Adjusted net income (1)

$    37,055


$    35,815


3.5


Less: Adjusted earnings allocated to participating securities

1,457


1,388


5.0


Adjusted net income available to diluted common shares (1)

$    35,598


$    34,427


3.4








 DILUTED (LOSS) INCOME PER COMMON SHARE RECONCILIATION: 






As reported

$        1.47


$        1.47



  Pre-tax adjustments:







   Catastrophic events  

0.07





   (Gain) loss on real estate and dealership transactions  

0.01





   Acquisition costs including related tax impact  

0.03





   Non-cash asset impairment  

0.01





Adjusted diluted income per share (1)

$        1.59


$        1.47


8.2








SG&A RECONCILIATION:







As reported

$  293,664


$  271,469


8.2


  Pre-tax adjustments:







   Catastrophic events  

(2,655)





   Gain (loss) on real estate and dealership transactions  

562





   Acquisition costs 

(591)





Adjusted SG&A (1)

$  290,980


$  271,469


7.2








SG&A AS % REVENUES:







Unadjusted

11.3


11.2




Adjusted (1)

11.2


11.2



SG&A AS % GROSS PROFIT:







Unadjusted

75.5


74.6




Adjusted (1)

74.8


74.6



OPERATING MARGIN %







Unadjusted

3.1


3.3




Adjusted (1), (2)

3.3


3.3



PRETAX MARGIN %:







Unadjusted

2.1


2.4




Adjusted (1), (2)

2.2


2.4










SAME STORE SG&A RECONCILIATION:







As reported

$  275,326


$  263,881


4.3


  Pre-tax adjustments:







   Catastrophic events  

(2,655)





   Gain (loss) on real estate and dealership transactions  

(134)





   Acquisition costs 

(591)





Adjusted Same Store SG&A (1)

$  271,946


$  263,881


3.1








SAME STORE SG&A AS % REVENUES:







Unadjusted

11.4


11.0




Adjusted (1)

11.2


11.0



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

74.9


73.7




Adjusted (1)

74.0


73.7



SAME STORE OPERATING MARGIN %







Unadjusted

3.3


3.5




Adjusted (1), (3)

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 Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $932 for the three months ended March 31, 2016.



(4)

Adjustment is net of tax benefit of $996 for the three months ended March 31, 2016, calculated utilizing the applicable federal and state tax rates for adjustment.



(5)

Adjustment is net of tax provision of $349 for the three months ended March 31, 2016, calculated utilizing the applicable federal and state tax rates for adjustment.



(6)

Adjustment is net of tax benefit of $11 for the three months ended March 31, 2016, calculated utilizing the applicable federal and state tax rates for adjustment.



(7)

Adjustment is net of tax benefit of $195 for the three months ended March 31, 2016, calculated utilizing the applicable federal and state tax rates for adjustment.

 

Group 1 Automotive, Inc. Logo.

Logo - http://photos.prnewswire.com/prnh/20110930/MM78360LOGO

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/group-1-automotive-reports-record-adjusted-2016-first-quarter-earnings-300258160.html

SOURCE Group 1 Automotive, Inc.

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