Market Overview

Group 1 Automotive Reports Third Quarter 2016 Results

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HOUSTON, Oct. 20, 2016 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), an international, Fortune 500 automotive retailer, today reported third quarter 2016 net income of $35.4 million, diluted earnings per common share of $1.65, adjusted net income (a non-GAAP measure) of $42.0 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $1.96.

As shown in the attached non-GAAP reconciliation tables, the 2016 third quarter adjusted results exclude approximately $6.6 million of net after-tax adjustments, or $0.31 per share, for non-core items.  These adjustments primarily consist of non-cash asset impairment charges of approximately $6.7 million after-tax, or $0.32 per share; catastrophic losses (primarily storm damage) of approximately $281 thousand after-tax, or $0.01 per share; foreign transaction tax expense of approximately $274 thousand after-tax, or $0.01 per share; and, were partially offset by dealership transaction net gains of approximately $700 thousand, or $0.03 per share.

"Our third quarter earnings were negatively impacted by ongoing sales weakness in our energy-dependent markets, especially Texas and Oklahoma, and some slight market weakness in the U.K. due to uncertainty associated with Brexit," said Earl J. Hesterberg, Group 1's president and chief executive officer.  "While our U.K. sales decreased in July and August, we did see recovery in September, but not enough to offset the weakness that occurred immediately following the vote.  Additionally, the weakening pound, versus the dollar, lowered this quarter's earnings per share by about four cents.  Within the U.S. results, we were encouraged by another quarter of improving new vehicle margins and the progress we have made in reducing new vehicle inventory during the quarter, with days' supply improving nine days from second-quarter levels to 74 days' supply at quarter end."

Consolidated Results for Third Quarter 2016 (year-over-year comparable basis)
For ease of comparison, we have included constant currency metrics (a non-GAAP measure) both below (shown in parenthesis) and in the financial tables that follow:

  • Total revenue increased 0.8 percent (3.3 percent) to a third-quarter record of $2.8 billion; total gross profit grew 2.1 percent (4.0 percent) to $406.7 million.
  • New vehicle revenues decreased 0.8 percent (but increased 1.6 percent on a constant currency basis) driven by a 3.2 percent decrease in unit sales. New vehicle gross profit improved 1.2 percent (3.8 percent) to $80.4 million.
  • Retail used vehicle revenues increased 2.2 percent (4.8 percent) on 1.6 percent higher unit sales. Retail used vehicle gross profit decreased 1.3 percent (but increased 0.5 percent on a constant currency basis) to $46.0 million.
  • Parts and service gross profit increased 4.2 percent (6.1 percent) on revenue growth of 5.3 percent (7.1 percent). Same Store parts and service gross profit increased 1.2 percent (2.5 percent) on revenue growth of 2.6 percent (3.8 percent). U.S. Same Store parts and service gross profit increased 2.4 percent on revenue growth of 3.4 percent.
  • Same Store Finance and Insurance (F&I) gross profit per retail unit (PRU) increased 4.0 percent (5.0 percent) to $1,421. U.S. F&I gross profit PRU increased $73 to $1,588.
  • On a GAAP basis, Selling, General and Administrative (SG&A) expenses as a percent of gross profit increased 100 basis points to 73.5 percent. Adjusted SG&A expenses as a percent of gross profit increased 110 basis points to 73.6 percent.

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

  • United States:
    The Company's U.S. operations accounted for 80.6 percent of total revenues and 85.3 percent of total gross profit. Total U.S. revenues were $2.3 billion, a decrease of 2.9 percent, driven by a 5.5 percent decrease in retail new vehicle revenue. While new vehicle sales volume decreased, new vehicle gross profit per unit sold grew $154, or 9.5 percent per unit, to $1,783 and total gross profit of $346.7 million was only down 0.5 percent. New vehicle inventory improved 9 days from second-quarter levels and ended the quarter at 74 days' supply.
     
    On a GAAP basis, SG&A expenses as a percent of gross profit improved 30 basis points to 71.1 percent and operating margin decreased 40 basis points to 3.4 percent. Adjusted SG&A expenses as a percent of gross profit and adjusted operating margin both improved 10 basis points to 71.3 percent and 3.9, respectively.
     
  • United Kingdom:
    The Company's U.K. operations accounted for 15.4 percent of total revenues and 11.7 percent of total gross profit. Total U.K. revenues increased 33.2 percent (56.7 percent) to $436.0 million, and gross profit increased 31.0 percent (54.2 percent) to $47.5 million. Revenue growth was primarily driven by the acquisition of the Spire dealer group in February of this year. On a constant currency basis, Same Store total revenue increased 5.5 percent, driven by a 6.1 percent increase in new vehicle revenues, 7.9 percent increase in parts and service revenues, and a 15.0 percent increase in F&I gross profit PRU.

    On a Same Store GAAP basis, SG&A expenses as a percent of gross profit and operating margin both improved 10 basis points to 77.5 percent and 2.2 percent, respectively. On a Same Store basis, adjusted SG&A expenses as a percent of gross profit improved 10 basis points to 77.5 percent and adjusted operating margin was unchanged at 2.2 percent.

  • Brazil:
    The Company's Brazilian operations accounted for 4.0 percent of total revenues and 3.1 percent of total gross profit. The Company's Same Store new vehicle revenue declined 24.2 percent on a constant currency basis in a continued weak economic environment. Year-to-date, Brazil's new vehicle industry volumes have declined about 23 percent. For the quarter, Same Store total revenue was down 18.7 percent on a constant currency basis, as F&I gross profit PRU growth of 44.3 percent and parts and service revenue growth of 2.0 percent partially offset the decline in new and used vehicles.

    The Company continues to improve its used vehicle operations in Brazil, with used vehicle retail margins improving 360 basis points to 7.6 percent and total used vehicle gross profit increasing $0.7 million or 69.7 percent on a constant currency basis.

Corporate Development

During the third quarter of 2016, the Company divested two dealerships in the U.S., which included Hyundai of Escondido, California and Ira Porsche of Danvers, Massachusetts.  In October 2016, the Company divested Honda of Van Nuys, California.  In total, these dealerships generated approximately $120 million in trailing-twelve-month revenues.  These divestitures are consistent with Group 1's portfolio management strategy.

Additionally, in the U.S., during third quarter of 2016, the Company was awarded a Porsche open point in El Paso, Texas.  The store's opening is targeted for late 2017.  The Company will provide expected annual revenues for this franchise when its opening is announced.

In October 2016, in the U.K., the Company acquired the Ford Basingstoke and Ford Newbury dealerships, which are located southwest and west of London, respectively and are contiguous with Group 1's existing U.K. Ford operations.  These stores, which will be rebranded as Think Ford Basingstoke and Think Ford Newbury, are expected to generate approximately $65 million in annualized revenues.

Share Repurchase Authorization

During the third quarter of 2016, the Company repurchased 244,205 shares at an average price of $50.61 for a total of $12.4 million, which were previously announced purchases in July 2016.  As of October 20, 2016, $22.4 million remains available under the Company's prior common stock share repurchase authorization.  Year to date, the Company has repurchased 2.3 million shares representing a 10 percent reduction from the previously announced share count as of December 31, 2015.  Purchases may be made from time to time in the open market or in privately negotiated transactions, based on market conditions, legal requirements and other corporate considerations and subject to Board approval and covenant restrictions.

THIRD QUARTER EARNINGS CONFERENCE CALL DETAILS
The Company's senior management will host a conference call today at 9 a.m. ET to discuss the third quarter financial results and the Company's outlook and strategy.

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

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

Domestic:

1-888-317-6003  

International:

1-412-317-6061

Conference ID:

6474498

 

A telephonic replay will be available following the call through October 27, 2016 by dialing:

Domestic:

1-877-344-7529

International:

1-412-317-0088

Replay ID:

10094717

 

About Group 1 Automotive, Inc.
Group 1 owns and operates 160 automotive dealerships, 211 franchises, and 37 collision centers in the United States, the United Kingdom and Brazil that offer 32 brands of automobiles.  Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service contracts; provides automotive maintenance and repair services; and sells vehicle parts.

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

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

NON-GAAP FINANCIAL MEASURES

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

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

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

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

Group 1 Automotive, Inc.

Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)








 Three Months Ended September 30, 


2016


2015


% Increase/
(Decrease)

REVENUES:






New vehicle retail sales

$ 1,587,952


$ 1,601,213


(0.8)

Used vehicle retail sales

702,620


687,637


2.2

Used vehicle wholesale sales

104,218


100,483


3.7

Parts and service

319,676


303,557


5.3

Finance and insurance

108,710


107,679


1.0

Total revenues

2,823,176


2,800,569


0.8







COST OF SALES:






New vehicle retail sales

1,507,517


1,521,721


(0.9)

Used vehicle retail sales

656,652


641,055


2.4

Used vehicle wholesale sales

106,077


102,318


3.7

Parts and service

146,262


137,093


6.7

Total cost of sales

2,416,508


2,402,187


0.6







GROSS PROFIT

406,668


398,382


2.1







SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

299,006


289,012


3.5







DEPRECIATION AND AMORTIZATION EXPENSE

12,891


11,811


9.1







ASSET IMPAIRMENTS

10,855


916


1,085.0







OPERATING INCOME

83,916


96,643


(13.2)







OTHER EXPENSE:






Floorplan interest expense

(11,135)


(9,685)


15.0

Other interest expense, net

(17,094)


(13,922)


22.8

INCOME BEFORE INCOME TAXES

55,687


73,036


(23.8)







PROVISION FOR INCOME TAXES

(20,321)


(27,775)


(26.8)







NET INCOME

$      35,366


$      45,261


(21.9)

Less: Earnings allocated to participating securities

$        1,426


$        1,729


(17.5)

Earnings available to diluted common shares

$      33,940


$      43,532


(22.0)

DILUTED EARNINGS PER SHARE

$          1.65


$          1.88


(12.2)

Weighted average dilutive common shares outstanding

20,578


23,137


(11.1)

Weighted average participating securities

872


925


(5.7)

Total weighted average shares outstanding

21,450


24,062


(10.9)














 Nine Months Ended September 30, 


2016


2015


% Increase/
(Decrease)

REVENUES:






New vehicle retail sales

$ 4,538,562


$ 4,468,200


1.6

Used vehicle retail sales

2,106,569


1,993,124


5.7

Used vehicle wholesale sales

302,089


302,186


Parts and service

950,341


888,939


6.9

Finance and insurance

316,419


307,454


2.9

Total revenues

8,213,980


7,959,903


3.2







COST OF SALES:






New vehicle retail sales

4,305,252


4,242,847


1.5

Used vehicle retail sales

1,963,136


1,854,361


5.9

Used vehicle wholesale sales

302,551


302,276


0.1

Parts and service

437,153


406,580


7.5

Total cost of sales

7,008,092


6,806,064


3.0







GROSS PROFIT

1,205,888


1,153,839


4.5







SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

891,692


841,050


6.0







DEPRECIATION AND AMORTIZATION EXPENSE

38,067


35,441


7.4







ASSET IMPAIRMENTS

12,812


1,955


555.3







OPERATING INCOME

263,317


275,393


(4.4)







OTHER EXPENSE:






Floorplan interest expense

(33,737)


(29,046)


16.2

Other interest expense, net

(50,729)


(42,061)


20.6

INCOME BEFORE INCOME TAXES

178,851


204,286


(12.5)







PROVISION FOR INCOME TAXES

(62,614)


(76,901)


(18.6)







NET INCOME

$    116,237


$    127,385


(8.8)

Less: Earnings allocated to participating securities

$        4,651


$        4,905


(5.2)

Earnings available to diluted common shares

$    111,586


$    122,480


(8.9)

DILUTED EARNINGS PER SHARE

$          5.22


$          5.26


(0.8)

Weighted average dilutive common shares outstanding

21,364


23,298


(8.3)

Weighted average participating securities

895


934


(4.2)

Total weighted average shares outstanding

22,259


24,232


(8.1)

 

Group 1 Automotive, Inc.

Consolidated Balance Sheets

(Unaudited)

(Dollars in thousands)










September 30,
2016


December 31,
2015


% Increase/
(Decrease)

 ASSETS: 







 CURRENT ASSETS: 







 Cash and cash equivalents 


$         22,918


$          13,037


75.8

 Contracts in transit and vehicle receivables, net 


206,292


252,438


(18.3)

 Accounts and notes receivable, net 


156,294


157,768


(0.9)

 Inventories, net 


1,687,379


1,737,751


(2.9)

 Prepaid expenses and other current assets 


25,555


27,376


(6.7)

 Total current assets 


2,098,438


2,188,370


(4.1)

 PROPERTY AND EQUIPMENT, net 


1,118,785


1,033,981


8.2

 GOODWILL AND INTANGIBLE FRANCHISE RIGHTS 


1,190,906


1,162,503


2.4

 OTHER ASSETS 


12,935


11,862


9.0

 Total assets 


$    4,421,064


$     4,396,716


0.6








 LIABILITIES AND STOCKHOLDERS' EQUITY: 







 CURRENT LIABILITIES: 







 Floorplan notes payable - credit facility and other 


$    1,110,104


$     1,265,719


(12.3)

 Offset account related to floorplan notes payable - credit facility 


(59,684)


(110,759)


(46.1)

 Floorplan notes payable - manufacturer affiliates 


387,770


389,071


(0.3)

 Offset account related to floorplan notes payable - manufacturer affiliates 


(22,500)


(25,500)


(11.8)

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


62,349


54,991


13.4

 Accounts payable 


354,957


280,423


26.6

 Accrued expenses 


193,553


185,323


4.4

 Total current liabilities 


2,026,549


2,039,268


(0.6)

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


540,075


538,933


0.2

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


295,455


295,156


0.1

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


352,548


317,290


11.1

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


44,639


48,155


(7.3)

 DEFERRED INCOME TAXES 


148,001


136,644


8.3

 LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES 


45,040


31,153


44.6

 OTHER LIABILITIES 


81,785


71,865


13.8

 STOCKHOLDERS' EQUITY: 







 Common stock 


257


257


 Additional paid-in capital 


287,018


291,092


(1.4)

 Retained earnings 


1,027,393


926,169


10.9

 Accumulated other comprehensive loss 


(157,446)


(137,984)


14.1

 Treasury stock 


(270,250)


(161,282)


67.6

 Total stockholders' equity 


886,972


918,252


(3.4)

 Total liabilities and stockholders' equity 


$    4,421,064


$     4,396,716


0.6

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)














Three Months Ended


Nine Months Ended




September 30,


September 30,




2016 (%)


2015 (%)


2016 (%)


2015 (%)

NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:








Region

Geographic Market









East

Massachusetts


5.0


6.0


4.9


6.1


Georgia


4.6


4.5


4.2


4.6


Florida


2.5


2.3


2.5


2.0


New Hampshire


2.0


2.1


1.9


2.0


New Jersey


1.7


2.3


1.6


2.3


Louisiana


1.6


1.5


1.5


1.6


Mississippi


1.5


1.5


1.5


1.5


South Carolina


1.3


1.4


1.4


1.4


Alabama


1.0


0.6


0.9


0.7


Maryland


0.5


0.5


0.5


0.5




21.7


22.7


20.9


22.7











West

Texas


36.2


38.6


36.4


38.4


California


9.4


9.5


9.3


9.7


Oklahoma


6.6


7.8


6.9


7.7


Kansas


1.6


2.0


1.8


2.1


Louisiana


0.6


0.7


0.6


0.7




54.4


58.6


55.0


58.6











International

United Kingdom


18.6


11.1


18.2


11.0


Brazil


5.3


7.6


5.9


7.7




100.0


100.0


100.0


100.0











NEW VEHICLE UNIT SALES BRAND MIX:









Toyota/Scion/Lexus


25.3


26.6


24.7


26.6

BMW/MINI


13.2


11.3


13.3


11.4

Volkswagen/Audi/Porsche


11.3


7.7


10.9


7.0

Ford/Lincoln


10.8


11.6


11.1


11.6

Honda/Acura


9.9


11.1


10.2


10.9

Chevrolet/GMC/Buick/Cadillac


7.3


7.8


7.6


7.5

Nissan


7.0


8.0


7.0


8.4

Hyundai/Kia


4.3


5.4


4.4


5.8

Mercedes-Benz/smart/Sprinter


4.2


3.8


4.1


4.1

Chrysler/Dodge/Jeep/RAM


4.1


4.6


4.1


4.6

Other


2.6


2.1


2.6


2.1




100.0


100.0


100.0


100.0

 

Group 1 Automotive, Inc.

Additional Information - U.S.

(Unaudited)

(Dollars in thousands, except per unit amounts)










Three Months Ended September 30,



2016


2015


% Increase/
(Decrease)

REVENUES:







New vehicle retail sales


$   1,254,421


$   1,327,049


(5.5)

Used vehicle retail sales


575,551


577,426


(0.3)

Used vehicle wholesale sales


74,821


74,161


0.9

Total used


650,372


651,587


(0.2)

Parts and service


271,635


264,979


2.5

Finance and insurance


98,295


99,952


(1.7)

Total


$   2,274,723


$   2,343,567


(2.9)








GROSS MARGIN %:







New vehicle retail sales


4.9


4.7



Used vehicle retail sales


6.8


7.1



Used vehicle wholesale sales


(2.0)


(2.5)



Total used


5.8


6.0



Parts and service


54.8


55.4



Finance and insurance


100.0


100.0



Total


15.2


14.9










GROSS PROFIT:







New vehicle retail sales


$        61,886


$        62,428


(0.9)

Used vehicle retail sales


39,193


41,053


(4.5)

Used vehicle wholesale sales


(1,514)


(1,855)


18.4

Total used


37,679


39,198


(3.9)

Parts and service


148,866


146,737


1.5

Finance and insurance


98,295


99,952


(1.7)

Total


$      346,726


$      348,315


(0.5)








UNITS SOLD:







Retail new vehicles sold


34,700


38,331


(9.5)

Retail used vehicles sold


27,201


27,664


(1.7)

Wholesale used vehicles sold


11,005


11,733


(6.2)

Total used


38,206


39,397


(3.0)








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$        36,150


$        34,621


4.4

Used vehicle retail


$        21,159


$        20,873


1.4








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$          1,783


$          1,629


9.5

Used vehicle retail sales


1,441


1,484


(2.9)

Used vehicle wholesale sales


(138)


(158)


12.7

Total used


986


995


(0.9)

Finance and insurance (per retail unit)


$          1,588


$          1,515


4.8








OTHER: 







SG&A expenses


$      246,501


$      248,771


(0.9)

Adjusted SG&A expenses(1)


$      247,227


$      248,771


(0.6)

SG&A as % revenues


10.8


10.6



Adjusted SG&A as % revenues (1)


10.9


10.6



SG&A as % gross profit


71.1


71.4



Adjusted SG&A as % gross profit (1)


71.3


71.4



Operating margin %


3.4


3.8



Adjusted operating margin % (1)


3.9


3.8



Pretax margin %


2.3


2.9



Adjusted pretax margin % (1)


2.8


2.9










INTEREST EXPENSE:







Floorplan interest expense


$        (9,979)


$        (8,964)


11.3

Floorplan assistance


12,824


13,344


(3.9)

Net floorplan income (expense)


$          2,845


$          4,380


(35.0)

Other interest income (expense), net


$      (15,710)


$      (12,737)


23.3

















Nine Months Ended September 30,



2016


2015


% Increase/
(Decrease)

REVENUES:







New vehicle retail sales


$   3,558,127


$   3,693,777


(3.7)

Used vehicle retail sales


1,709,595


1,661,932


2.9

Used vehicle wholesale sales


205,755


217,032


(5.2)

Total used


1,915,350


1,878,964


1.9

Parts and service


805,618


771,986


4.4

Finance and insurance


284,644


284,787


(0.1)

Total


$   6,563,739


$   6,629,514


(1.0)








GROSS MARGIN %:







New vehicle retail sales


5.0


4.8



Used vehicle retail sales


7.2


7.3



Used vehicle wholesale sales


(0.3)


(0.1)



Total used


6.4


6.5



Parts and service


54.6


54.8



Finance and insurance


100.0


100.0



Total


15.6


15.2










GROSS PROFIT:







New vehicle retail sales


$      177,674


$      175,549


1.2

Used vehicle retail sales


122,832


121,906


0.8

Used vehicle wholesale sales


(643)


(167)


(285.0)

Total used


122,189


121,739


0.4

Parts and service


439,526


422,912


3.9

Finance and insurance


284,644


284,787


(0.1)

Total


$   1,024,033


$   1,004,987


1.9








UNITS SOLD:







Retail new vehicles sold


98,692


106,651


(7.5)

Retail used vehicles sold


80,888


79,647


1.6

Wholesale used vehicles sold


30,894


33,542


(7.9)

Total used


111,782


113,189


(1.2)








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$        36,053


$        34,634


4.1

Used vehicle retail


$        21,135


$        20,866


1.3








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$          1,800


$          1,646


9.4

Used vehicle retail sales


1,519


1,531


(0.8)

Used vehicle wholesale sales


(21)


(5)


(320.0)

Total used


1,093


1,076


1.6

Finance and insurance (per retail unit)


$          1,585


$          1,529


3.7








OTHER: 







SG&A expenses


$      737,730


$      718,607


2.7

Adjusted SG&A expenses(1)


$      733,683


$      717,708


2.2

SG&A as % revenues


11.2


10.8



Adjusted SG&A as % revenues (1)


11.2


10.8



SG&A as % gross profit


72.0


71.5



Adjusted SG&A as % gross profit (1)


71.6


71.4



Operating margin %


3.7


3.8



Adjusted operating margin % (1)


3.9


3.9



Pretax margin %


2.5


2.9



Adjusted pretax margin % (1)


2.8


2.9










INTEREST EXPENSE:







Floorplan interest expense


$      (30,428)


$      (26,440)


15.1

Floorplan assistance


36,176


36,503


(0.9)

Net floorplan income (expense)


$          5,748


$        10,063


(42.9)

Other interest income (expense), net


$      (46,581)


$      (38,534)


20.9


(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 September 30,



2016


2015


% Increase/
(Decrease)


Constant Currency % (2)
Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$      256,143


$  180,967


41.5


66.3

Used vehicle retail sales


106,856


89,321


19.6


41.2

Used vehicle wholesale sales


28,586


24,859


15.0


35.6

Total used


135,442


114,180


18.6


40.0

Parts and service


35,682


26,193


36.2


60.8

Finance and insurance


8,708


6,091


43.0


68.2

Total


$      435,975


$  327,431


33.2


56.7










GROSS MARGIN %:









New vehicle retail sales


5.5


6.1





Used vehicle retail sales


4.9


5.2





Used vehicle wholesale sales


(1.4)


(0.3)





Total used


3.6


4.0





Parts and service


55.7


55.6





Finance and insurance


100.0


100.0





Total


10.9


11.1














GROSS PROFIT:









New vehicle retail sales


$        14,031


$    11,060


26.9


48.7

Used vehicle retail sales


5,265


4,631


13.7


34.3

Used vehicle wholesale sales


(404)


(73)


(453.4)


(558.6)

Total used


4,861


4,558


6.6


25.9

Parts and service


19,892


14,554


36.7


61.3

Finance and insurance


8,708


6,091


43.0


68.2

Total


$        47,492


$    36,263


31.0


54.2










UNITS SOLD:









Retail new vehicles sold


8,468


5,213


62.4



Retail used vehicles sold


4,800


3,582


34.0



Wholesale used vehicles sold


3,689


2,791


32.2



Total used


8,489


6,373


33.2












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$        30,248


$    34,715


(12.9)


2.4

Used vehicle retail


$        22,262


$    24,936


(10.7)


5.4










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$          1,657


$      2,122


(21.9)


(8.5)

Used vehicle retail sales


1,097


1,293


(15.2)


0.2

Used vehicle wholesale sales


(110)


(26)


(323.1)


(398.3)

Total used


573


715


(19.9)


(5.5)

Finance and insurance (per retail unit)


$             656


$         693


(5.3)


11.5










OTHER: 









SG&A expenses


$        39,609


$    28,124


40.8


66.2

Adjusted SG&A expenses(1)


$        39,609


$    28,124


40.8


66.2

SG&A as % revenues


9.1


8.6





Adjusted SG&A as % revenues (1)


9.1


8.6





SG&A as % gross profit


83.4


77.6





Adjusted SG&A as % gross profit (1)


83.4


77.6





Operating margin %


1.4


2.1





Adjusted operating margin % (1)


1.4


2.2





Pretax margin %


0.9


1.6





Adjusted pretax margin % (1)


0.9


1.7














INTEREST EXPENSE:









Floorplan interest expense


$        (1,083)


$        (625)


73.3


104.3

Floorplan assistance


154


201


(23.4)


(9.7)

Net floorplan income (expense)


$           (929)


$        (424)


119.1


158.6

Other interest income (expense), net


$        (1,299)


$        (780)


66.5


96.7





















Nine Months Ended September 30,



2016


2015


% Increase/
(Decrease)


Constant Currency % (2)
Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$      764,707


$  492,424


55.3


70.8

Used vehicle retail sales


339,800


269,629


26.0


38.6

Used vehicle wholesale sales


93,985


78,692


19.4


31.2

Total used


433,785


348,321


24.5


36.9

Parts and service


110,180


76,983


43.1


57.6

Finance and insurance


26,991


17,411


55.0


70.6

Total


$   1,335,663


$  935,139


42.8


57.1










GROSS MARGIN %:









New vehicle retail sales


5.7


6.3





Used vehicle retail sales


5.1


5.3





Used vehicle wholesale sales


0.1


(0.5)





Total used


4.0


4.0





Parts and service


55.2


55.0





Finance and insurance


100.0


100.0





Total


11.1


11.2














GROSS PROFIT:









New vehicle retail sales


$        43,347


$    30,802


40.7


54.7

Used vehicle retail sales


17,329


14,164


22.3


34.3

Used vehicle wholesale sales


54


(385)


114.0


105.5

Total used


17,383


13,779


26.2


38.2

Parts and service


60,845


42,345


43.7


58.3

Finance and insurance


26,991


17,411


55.0


70.6

Total


$      148,566


$  104,337


42.4


56.6










UNITS SOLD:









Retail new vehicles sold


23,694


14,408


64.5



Retail used vehicles sold


14,401


10,863


32.6



Wholesale used vehicles sold


11,328


8,682


30.5



Total used


25,729


19,545


31.6












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$        32,274


$    34,177


(5.6)


3.9

Used vehicle retail


$        23,596


$    24,821


(4.9)


4.5










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$          1,829


$      2,138


(14.5)


(5.9)

Used vehicle retail sales


1,203


1,304


(7.7)


1.3

Used vehicle wholesale sales


5


(44)


111.4


104.2

Total used


676


705


(4.1)


5.0

Finance and insurance (per retail unit)


$             709


$         689


2.9


13.1










OTHER: 









SG&A expenses


$      119,154


$    81,528


46.2


61.0

Adjusted SG&A expenses(1)


$      118,593


$    81,320


45.8


60.7

SG&A as % revenues


8.9


8.7





Adjusted SG&A as % revenues (1)


8.9


8.7





SG&A as % gross profit


80.2


78.1





Adjusted SG&A as % gross profit (1)


79.8


77.9





Operating margin %


1.8


2.1





Adjusted operating margin % (1)


1.9


2.1





Pretax margin %


1.3


1.6





Adjusted pretax margin % (1)


1.3


1.7














INTEREST EXPENSE:









Floorplan interest expense


$        (3,137)


$     (1,689)


85.7


105.0

Floorplan assistance


643


584


10.1


19.9

Net floorplan income (expense)


$        (2,494)


$     (1,105)


125.7


150.0

Other interest income (expense), net


$        (3,966)


$     (2,339)


69.6


86.8










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

(2)We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods.  The non-GAAP financial measures presented above should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with U.S. GAAP. 

 

Group 1 Automotive, Inc.

Additional Information - Brazil

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended September 30,



2016


2015


% Increase/
(Decrease)


Constant Currency % (2)
Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$      77,388


$      93,197


(17.0)


(22.9)

Used vehicle retail sales


20,213


20,890


(3.2)


(10.3)

Used vehicle wholesale sales


811


1,463


(44.6)


(47.5)

Total used


21,024


22,353


(5.9)


(12.7)

Parts and service


12,359


12,385


(0.2)


(7.5)

Finance and insurance


1,707


1,636


4.3


(5.1)

Total


$    112,478


$    129,571


(13.2)


(19.4)










GROSS MARGIN %:









New vehicle retail sales


5.8


6.4





Used vehicle retail sales


7.5


4.3





Used vehicle wholesale sales


7.3


6.4





Total used


7.5


4.4





Parts and service


37.7


41.8





Finance and insurance


100.0


100.0





Total


11.1


10.7














GROSS PROFIT:









New vehicle retail sales


$        4,518


$        6,004


(24.8)


(29.8)

Used vehicle retail sales


1,510


898


68.2


56.3

Used vehicle wholesale sales


59


93


(36.6)


(39.9)

Total used


1,569


991


58.3


47.2

Parts and service


4,656


5,173


(10.0)


(16.5)

Finance and insurance


1,707


1,636


4.3


(5.1)

Total


$      12,450


$      13,804


(9.8)


(16.3)










UNITS SOLD:









Retail new vehicles sold


2,429


3,582


(32.2)



Retail used vehicles sold


1,011


1,245


(18.8)



Wholesale used vehicles sold


333


402


(17.2)



Total used


1,344


1,647


(18.4)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$      31,860


$      26,018


22.5


13.8

Used vehicle retail


$      19,993


$      16,779


19.2


10.5










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$        1,860


$        1,676


11.0


3.6

Used vehicle retail sales


1,494


721


107.2


92.4

Used vehicle wholesale sales


177


231


(23.4)


(27.4)

Total used


1,167


602


93.9


80.4

Finance and insurance (per retail unit)


$           496


$           339


46.3


33.2










OTHER: 









SG&A expenses


$      12,896


$      12,117


6.4


(1.2)

Adjusted SG&A expenses(1)


$      12,622


$      12,117


4.2


(3.3)

SG&A as % revenues


11.5


9.4





Adjusted SG&A as % revenues (1)


11.2


9.4





SG&A as % gross profit


103.6


87.8





Adjusted SG&A as % gross profit (1)


101.4


87.8





Operating margin %


(0.6)


0.8





Adjusted operating margin % (1)


(0.4)


1.0





Pretax margin %


(0.8)


0.4





Adjusted pretax margin % (1)


(0.5)


0.6














INTEREST EXPENSE:









Floorplan interest expense


$           (73)


$           (96)


(24.0)


(31.8)

Floorplan assistance




-


-

Net floorplan income (expense)


$           (73)


$           (96)


(24.0)


(31.8)

Other interest income (expense), net


$           (85)


$         (405)


(79.0)


(80.0)





















Nine Months Ended September 30,



2016


2015


% Increase/
(Decrease)


Constant Currency % (2)
Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$    215,728


$    281,999


(23.5)


(14.1)

Used vehicle retail sales


57,174


61,563


(7.1)


5.2

Used vehicle wholesale sales


2,349


6,462


(63.6)


(58.0)

Total used


59,523


68,025


(12.5)


(0.8)

Parts and service


34,543


39,970


(13.6)


(2.6)

Finance and insurance


4,784


5,256


(9.0)


2.0

Total


$    314,578


$    395,250


(20.4)


(10.4)










GROSS MARGIN %:









New vehicle retail sales


5.7


6.7





Used vehicle retail sales


5.7


4.4





Used vehicle wholesale sales


5.4


7.1





Total used


5.7


4.6





Parts and service


37.1


42.8





Finance and insurance


100.0


100.0





Total


10.6


11.3














GROSS PROFIT:









New vehicle retail sales


$      12,289


$      19,002


(35.3)


(27.0)

Used vehicle retail sales


3,272


2,693


21.5


34.4

Used vehicle wholesale sales


127


462


(72.5)


(68.3)

Total used


3,399


3,155


7.7


19.3

Parts and service


12,817


17,102


(25.1)


(15.2)

Finance and insurance


4,784


5,256


(9.0)


2.0

Total


$      33,289


$      44,515


(25.2)


(15.8)










UNITS SOLD:









Retail new vehicles sold


7,636


10,071


(24.2)



Retail used vehicles sold


3,465


3,403


1.8



Wholesale used vehicles sold


855


1,269


(32.6)



Total used


4,320


4,672


(7.5)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$      28,251


$      28,001


0.9


13.3

Used vehicle retail


$      16,500


$      18,091


(8.8)


3.3










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$        1,609


$        1,887


(14.7)


(3.8)

Used vehicle retail sales


944


791


19.3


32.0

Used vehicle wholesale sales


149


364


(59.1)


(52.9)

Total used


787


675


16.6


29.1

Finance and insurance (per retail unit)


$           431


$           390


10.5


23.8










OTHER: 









SG&A expenses


$      34,808


$      40,915


(14.9)


(3.8)

Adjusted SG&A expenses(1)


$      34,162


$      40,915


(16.5)


(5.6)

SG&A as % revenues


11.1


10.4





Adjusted SG&A as % revenues (1)


10.9


10.4





SG&A as % gross profit


104.6


91.9





Adjusted SG&A as % gross profit (1)


102.6


91.9





Operating margin %


(0.9)


0.3





Adjusted operating margin % (1)


(0.5)


0.6





Pretax margin %


(1.0)


(0.2)





Adjusted pretax margin % (1)


(0.7)















INTEREST EXPENSE:









Floorplan interest expense


$         (172)


$         (917)


(81.2)


(78.1)

Floorplan assistance




-


-

Net floorplan income (expense)


$         (172)


$         (917)


(81.2)


(78.1)

Other interest income (expense), net


$         (182)


$      (1,188)


(84.7)


(81.6)


(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.

(2)We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods.  The non-GAAP financial measures presented above should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with U.S. GAAP. 

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended September 30,



2016


2015


% Increase/
(Decrease)


Constant Currency % (2)
Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$   1,587,952


$   1,601,213


(0.8)


1.6

Used vehicle retail sales


702,620


687,637


2.2


4.8

Used vehicle wholesale sales


104,218


100,483


3.7


8.8

Total used


806,838


788,120


2.4


5.3

Parts and service


319,676


303,557


5.3


7.1

Finance and insurance


108,710


107,679


1.0


2.2

Total


$   2,823,176


$   2,800,569


0.8


3.3










GROSS MARGIN %:









New vehicle retail sales


5.1


5.0





Used vehicle retail sales


6.5


6.8





Used vehicle wholesale sales


(1.8)


(1.8)





Total used


5.5


5.7





Parts and service


54.2


54.8





Finance and insurance


100.0


100.0





Total


14.4


14.2














GROSS PROFIT:









New vehicle retail sales


$        80,435


$        79,492


1.2


3.8

Used vehicle retail sales


45,968


46,582


(1.3)


0.5

Used vehicle wholesale sales


(1,859)


(1,835)


(1.3)


(5.7)

Total used


44,109


44,747


(1.4)


0.3

Parts and service


173,414


166,464


4.2


6.1

Finance and insurance


108,710


107,679


1.0


2.2

Total


$      406,668


$      398,382


2.1


4.0










UNITS SOLD:









Retail new vehicles sold


45,597


47,126


(3.2)



Retail used vehicles sold


33,012


32,491


1.6



Wholesale used vehicles sold


15,027


14,926


0.7



Total used


48,039


47,417


1.3












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$        34,826


$        33,977


2.5


5.0

Used vehicle retail


$        21,284


$        21,164


0.6


3.1










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$          1,764


$          1,687


4.6


7.3

Used vehicle retail sales


1,392


1,434


(2.9)


(1.1)

Used vehicle wholesale sales


(124)


(123)


(0.8)


(4.9)

Total used


918


944


(2.8)


(1.0)

Finance and insurance (per retail unit)


$          1,383


$          1,352


2.3


3.6










OTHER: 









SG&A expenses


$      299,006


$      289,012


3.5


5.6

Adjusted SG&A expenses(1)


$      299,458


$      289,012


3.6


5.8

SG&A as % revenues


10.6


10.3





Adjusted SG&A as % revenues (1)


10.6


10.3





SG&A as % gross profit


73.5


72.5





Adjusted SG&A as % gross profit (1)


73.6


72.5





Operating margin %


3.0


3.5





Adjusted operating margin % (1)


3.3


3.5





Pretax margin %


2.0


2.6





Adjusted pretax margin % (1)


2.3


2.6














INTEREST EXPENSE:









Floorplan interest expense


$      (11,135)


$        (9,685)


15.0


16.9

Floorplan assistance


12,979


13,545


(4.2)


(4.2)

Net floorplan income (expense)


$          1,844


$          3,860


(52.2)


(57.1)

Other interest income (expense), net


$      (17,094)


$      (13,922)


22.8


24.4




















Nine Months Ended September 30,



2016


2015


% Increase/
(Decrease)


Constant Currency % (2)
Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$   4,538,562


$   4,468,200


1.6


3.9

Used vehicle retail sales


2,106,569


1,993,124


5.7


7.8

Used vehicle wholesale sales


302,089


302,186



3.1

Total used


2,408,658


2,295,310


4.9


7.2

Parts and service


950,341


888,939


6.9


8.7

Finance and insurance


316,419


307,454


2.9


4.0

Total


$   8,213,980


$   7,959,903


3.2


5.4










GROSS MARGIN %:









New vehicle retail sales


5.1


5.0





Used vehicle retail sales


6.8


7.0





Used vehicle wholesale sales


(0.2)


(0.0)





Total used


5.9


6.0





Parts and service


54.0


54.3





Finance and insurance


100.0


100.0





Total


14.7


14.5














GROSS PROFIT:









New vehicle retail sales


$      233,310


$      225,353


3.5


6.1

Used vehicle retail sales


143,433


138,763


3.4


4.8

Used vehicle wholesale sales


(462)


(90)


(413.3)


(432.4)

Total used


142,971


138,673


3.1


4.6

Parts and service


513,188


482,359


6.4


8.0

Finance and insurance


316,419


307,454


2.9


4.0

Total


$   1,205,888


$   1,153,839


4.5


6.2










UNITS SOLD:









Retail new vehicles sold


130,022


131,130


(0.8)



Retail used vehicles sold


98,754


93,913


5.2



Wholesale used vehicles sold


43,077


43,493


(1.0)



Total used


141,831


137,406


3.2












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$        34,906


$        34,075


2.4


4.8

Used vehicle retail


$        21,331


$        21,223


0.5


2.5










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$          1,794


$          1,719


4.4


7.1

Used vehicle retail sales


1,452


1,478


(1.8)


(0.3)

Used vehicle wholesale sales


(11)


(2)


(450.0)


(437.5)

Total used


1,008


1,009


(0.1)


1.3

Finance and insurance (per retail unit)


$          1,383


$          1,366


1.2


2.3










OTHER: 









SG&A expenses


$      891,692


$      841,050


6.0


8.0

Adjusted SG&A expenses(1)


$      886,439


$      839,943


5.5


7.5

SG&A as % revenues


10.9


10.6





Adjusted SG&A as % revenues (1)


10.8


10.6





SG&A as % gross profit


73.9


72.9





Adjusted SG&A as % gross profit (1)


73.5


72.8





Operating margin %


3.2


3.5





Adjusted operating margin % (1)


3.4


3.5





Pretax margin %


2.2


2.6





Adjusted pretax margin % (1)


2.4


2.6














INTEREST EXPENSE:









Floorplan interest expense


$      (33,737)


$      (29,046)


16.2


17.4

Floorplan assistance


36,818


37,087


(0.7)


(0.7)

Net floorplan income (expense)


$          3,081


$          8,041


(61.7)


(66.1)

Other interest income (expense), net


$      (50,729)


$      (42,061)


20.6


21.7


(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.

(2)We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods.  The non-GAAP financial measures presented above should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with U.S. GAAP. 

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)










Three Months Ended September 30,



2016


2015


% Increase/
(Decrease)

REVENUES:







New vehicle retail sales


$    1,240,952


$    1,297,598


(4.4)

Used vehicle retail sales


567,275


565,381


0.3

Used vehicle wholesale sales


73,940


71,204


3.8

Total used


641,215


636,585


0.7

Parts and service


267,909


258,996


3.4

Finance and insurance


96,809


98,577


(1.8)

Total


$    2,246,885


$    2,291,756


(2.0)








GROSS MARGIN %:







New vehicle retail sales


4.9


4.8



Used vehicle retail sales


6.8


7.1



Used vehicle wholesale sales


(2.0)


(2.3)



Total used


5.8


6.1



Parts and service


54.8


55.3



Finance and insurance


100.0


100.0



Total


15.2


14.9










GROSS PROFIT:







New vehicle retail sales


$         60,920


$         61,638


(1.2)

Used vehicle retail sales


38,719


40,358


(4.1)

Used vehicle wholesale sales


(1,460)


(1,605)


9.0

Total used


37,259


38,753


(3.9)

Parts and service


146,738


143,344


2.4

Finance and insurance


96,809


98,577


(1.8)

Total


$       341,726


$       342,312


(0.2)








UNITS SOLD:







Retail new vehicles sold


34,435


37,403


(7.9)

Retail used vehicles sold


26,915


27,164


(0.9)

Wholesale used vehicles sold


10,887


11,340


(4.0)

Total used


37,802


38,504


(1.8)








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$         36,038


$         34,692


3.9

Used vehicle retail


$         21,077


$         20,814


1.3








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$           1,769


$           1,648


7.3

Used vehicle retail sales


1,439


1,486


(3.2)

Used vehicle wholesale sales


(134)


(142)


5.6

Total used


986


1,006


(2.0)

Finance and insurance (per retail unit)


$           1,578


$           1,527


3.3








OTHER: 







SG&A expenses


$       243,405


$       242,056


0.6

Adjusted SG&A expenses(2)


$       242,955


$       242,056


0.4

SG&A as % revenues


10.8


10.6



Adjusted SG&A as % revenues (2)


10.8


10.6



SG&A as % gross profit


71.2


70.7



Adjusted SG&A as % gross profit (2)


71.1


70.7



Operating margin %


3.4


3.9



Adjusted operating margin % (2)


3.9


3.9



















Nine Months Ended September 30,



2016


2015


% Increase/
(Decrease)

REVENUES:







New vehicle retail sales


$    3,483,544


$    3,615,137


(3.6)

Used vehicle retail sales


1,670,922


1,628,417


2.6

Used vehicle wholesale sales


200,066


209,686


(4.6)

Total used


1,870,988


1,838,103


1.8

Parts and service


788,935


753,477


4.7

Finance and insurance


278,883


281,040


(0.8)

Total


$    6,422,350


$    6,487,757


(1.0)








GROSS MARGIN %:







New vehicle retail sales


5.0


4.8



Used vehicle retail sales


7.2


7.4



Used vehicle wholesale sales


(0.2)


0.1



Total used


6.4


6.5



Parts and service


54.5


54.8



Finance and insurance


100.0


100.0



Total


15.6


15.2










GROSS PROFIT:







New vehicle retail sales


$       173,001


$       171,974


0.6

Used vehicle retail sales


120,081


119,995


0.1

Used vehicle wholesale sales


(372)


151


(346.4)

Total used


119,709


120,146


(0.4)

Parts and service


429,838


412,640


4.2

Finance and insurance


278,883


281,040


(0.8)

Total


$    1,001,431


$       985,800


1.6








UNITS SOLD:







Retail new vehicles sold


97,163


104,424


(7.0)

Retail used vehicles sold


79,587


78,292


1.7

Wholesale used vehicles sold


30,367


32,651


(7.0)

Total used


109,954


110,943


(0.9)








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$         35,853


$         34,620


3.6

Used vehicle retail


$         20,995


$         20,799


0.9








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$           1,781


$           1,647


8.1

Used vehicle retail sales


1,509


1,533


(1.6)

Used vehicle wholesale sales


(12)


5


(340.0)

Total used


1,089


1,083


0.6

Finance and insurance (per retail unit)


$           1,578


$           1,538


2.6








OTHER: 







SG&A expenses


$       722,654


$       700,646


3.1

Adjusted SG&A expenses(2)


$       716,366


$       698,331


2.6

SG&A as % revenues


11.3


10.8



Adjusted SG&A as % revenues (2)


11.2


10.8



SG&A as % gross profit


72.2


71.1



Adjusted SG&A as % gross profit (2)


71.5


70.8



Operating margin %


3.7


3.9



Adjusted operating margin % (2)


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 September 30,



2016


2015


% Increase/
(Decrease)


Constant Currency % (3)
Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$  163,396


$  180,967


(9.7)


6.1

Used vehicle retail sales


79,243


89,321


(11.3)


4.7

Used vehicle wholesale sales


20,785


24,859


(16.4)


(1.4)

Total used


100,028


114,180


(12.4)


3.4

Parts and service


23,952


26,193


(8.6)


7.9

Finance and insurance


6,087


6,091


(0.1)


17.6

Total


$  293,463


$  327,431


(10.4)


5.5










GROSS MARGIN %:









New vehicle retail sales


5.9


6.1





Used vehicle retail sales


5.3


5.2





Used vehicle wholesale sales


(0.3)


(0.3)





Total used


4.1


4.0





Parts and service


55.3


55.6





Finance and insurance


100.0


100.0





Total


11.3


11.1














GROSS PROFIT:









New vehicle retail sales


$      9,559


$    11,059


(13.6)


1.3

Used vehicle retail sales


4,189


4,632


(9.6)


6.8

Used vehicle wholesale sales


(66)


(73)


9.6


(8.0)

Total used


4,123


4,559


(9.6)


6.8

Parts and service


13,246


14,554


(9.0)


7.4

Finance and insurance


6,087


6,091


(0.1)


17.6

Total


$    33,015


$    36,263


(9.0)


7.2










UNITS SOLD:









Retail new vehicles sold


5,293


5,213


1.5



Retail used vehicles sold


3,702


3,582


3.4



Wholesale used vehicles sold


2,824


2,791


1.2



Total used


6,526


6,373


2.4












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$    30,870


$    34,715


(11.1)


4.5

Used vehicle retail


$    21,405


$    24,936


(14.2)


1.3










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$      1,806


$      2,121


(14.9)


(0.2)

Used vehicle retail sales


1,132


1,293


(12.5)


3.4

Used vehicle wholesale sales


(23)


(26)


11.5


(6.7)

Total used


632


715


(11.6)


4.3

Finance and insurance (per retail unit)


$         677


$         693


(2.3)


15.0










OTHER:  









SG&A expenses


$    25,588


$    28,130


(9.0)


7.3

Adjusted SG&A expenses(2)


$    25,588


$    28,130


(9.0)


7.3

SG&A as % revenues


8.7


8.6





Adjusted SG&A as % revenues (2)


8.7


8.6





SG&A as % gross profit


77.5


77.6





Adjusted SG&A as % gross profit (2)


77.5


77.6





Operating margin %


2.2


2.1





Adjusted operating margin % (2)


2.2


2.2









Nine Months Ended September 30,



2016


2015


% Increase/
(Decrease)


Constant Currency % (3)
Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$  503,611


$  492,424


2.3


12.4

Used vehicle retail sales


261,228


269,629


(3.1)


6.4

Used vehicle wholesale sales


70,361


78,692


(10.6)


(1.9)

Total used


331,589


348,321


(4.8)


4.5

Parts and service


76,063


76,983


(1.2)


8.7

Finance and insurance


19,186


17,411


10.2


21.2

Total


$  930,449


$  935,139


(0.5)


9.3










GROSS MARGIN %:









New vehicle retail sales


6.0


6.3





Used vehicle retail sales


5.3


5.3





Used vehicle wholesale sales


0.5


(0.5)





Total used


4.3


4.0





Parts and service


55.2


55.0





Finance and insurance


100.0


100.0





Total


11.4


11.2














GROSS PROFIT:









New vehicle retail sales


$    30,430


$    30,796


(1.2)


8.6

Used vehicle retail sales


13,795


14,163


(2.6)


6.9

Used vehicle wholesale sales


346


(384)


190.1


198.8

Total used


14,141


13,779


2.6


12.7

Parts and service


42,001


42,344


(0.8)


9.1

Finance and insurance


19,186


17,411


10.2


21.2

Total


$  105,758


$  104,330


1.4


11.4










UNITS SOLD:









Retail new vehicles sold


15,296


14,408


6.2



Retail used vehicles sold


11,413


10,863


5.1



Wholesale used vehicles sold


8,884


8,682


2.3



Total used


20,297


19,545


3.8












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$    32,924


$    34,177


(3.7)


5.9

Used vehicle retail


$    22,889


$    24,821


(7.8)


1.3










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$      1,989


$      2,137


(6.9)


2.3

Used vehicle retail sales


1,209


1,304


(7.3)


1.8

Used vehicle wholesale sales


39


(44)


188.6


196.5

Total used


697


705


(1.1)


8.5

Finance and insurance (per retail unit)


$         718


$         689


4.2


14.6










OTHER: 









SG&A expenses


$    80,868


$    81,546


(0.8)


9.1

Adjusted SG&A expenses(2)


$    80,307


$    81,338


(1.3)


8.6

SG&A as % revenues


8.7


8.7





Adjusted SG&A as % revenues (2)


8.6


8.7





SG&A as % gross profit


76.5


78.2





Adjusted SG&A as % gross profit (2)


75.9


78.0





Operating margin %


2.3


2.1





Adjusted operating margin % (2)


2.4


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.

(3)We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods.  The non-GAAP financial measures presented above should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with U.S. GAAP. 

 

Group 1 Automotive, Inc.

Additional Information - Same Store Brazil (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended September 30,



2016


2015


% Increase/
(Decrease)


Constant Currency % (3)
Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$    71,750


$    87,962


(18.4)


(24.2)

Used vehicle retail sales


18,757


18,600


0.8


(6.5)

Used vehicle wholesale sales


811


1,019


(20.4)


(24.5)

Total used


19,568


19,619


(0.3)


(7.5)

Parts and service


11,557


10,500


10.1


2.0

Finance and insurance


1,651


1,390


18.8


7.8

Total


$  104,526


$  119,471


(12.5)


(18.7)










GROSS MARGIN %:









New vehicle retail sales


5.9


6.4





Used vehicle retail sales


7.6


4.0





Used vehicle wholesale sales


7.3


6.7





Total used


7.5


4.1





Parts and service


37.9


42.8





Finance and insurance


100.0


100.0





Total


11.2


10.3














GROSS PROFIT:









New vehicle retail sales


$      4,213


$      5,649


(25.4)


(30.4)

Used vehicle retail sales


1,417


739


91.7


78.0

Used vehicle wholesale sales


59


68


(13.2)


(18.8)

Total used


1,476


807


82.9


69.7

Parts and service


4,382


4,494


(2.5)


(9.6)

Finance and insurance


1,651


1,390


18.8


7.8

Total


$    11,722


$    12,340


(5.0)


(11.8)










UNITS SOLD:









Retail new vehicles sold


2,261


3,254


(30.5)



Retail used vehicles sold


950


1,045


(9.1)



Wholesale used vehicles sold


304


300


1.3



Total used


1,254


1,345


(6.8)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$    31,734


$    27,032


17.4


9.1

Used vehicle retail


$    19,744


$    17,799


10.9


2.8










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$      1,863


$      1,736


7.3


0.2

Used vehicle retail sales


1,492


707


111.0


95.8

Used vehicle wholesale sales


194


227


(14.5)


(19.9)

Total used


1,177


600


96.2


82.1

Finance and insurance (per retail unit)


$         514


$         323


59.1


44.3










OTHER: 









SG&A expenses


$    12,105


$    10,100


19.9


11.3

Adjusted SG&A expenses(2)


$    11,831


$    10,100


17.1


8.8

SG&A as % revenues


11.6


8.5





Adjusted SG&A as % revenues (2)


11.3


8.5





SG&A as % gross profit


103.3


81.9





Adjusted SG&A as % gross profit (2)


100.9


81.9





Operating margin %


(0.6)


1.5





Adjusted operating margin % (2)


(0.3)


1.6























Nine Months Ended September 30,



2016


2015


% Increase/
(Decrease)


Constant Currency % (3)
Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$  204,560


$  266,408


(23.2)


(13.5)

Used vehicle retail sales


54,321


56,160


(3.3)


10.1

Used vehicle wholesale sales


2,058


5,052


(59.3)


(52.5)

Total used


56,379


61,212


(7.9)


4.9

Parts and service


33,005


35,089


(5.9)


6.5

Finance and insurance


4,661


4,789


(2.7)


9.8

Total


$  298,605


$  367,498


(18.7)


(8.2)










GROSS MARGIN %:









New vehicle retail sales


5.8


6.8





Used vehicle retail sales


5.8


4.2





Used vehicle wholesale sales


6.9


7.3





Total used


5.9


4.4





Parts and service


37.7


43.5





Finance and insurance


100.0


100.0





Total


10.8


11.1














GROSS PROFIT:









New vehicle retail sales


$    11,789


$    18,055


(34.7)


(26.1)

Used vehicle retail sales


3,158


2,331


35.5


51.2

Used vehicle wholesale sales


141


368


(61.7)


(55.5)

Total used


3,299


2,699


22.2


36.7

Parts and service


12,444


15,266


(18.5)


(7.4)

Finance and insurance


4,661


4,789


(2.7)


9.8

Total


$    32,193


$    40,809


(21.1)


(10.8)










UNITS SOLD:









Retail new vehicles sold


7,265


9,165


(20.7)



Retail used vehicles sold


3,312


2,948


12.3



Wholesale used vehicles sold


760


998


(23.8)



Total used


4,072


3,946


3.2












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$    28,157


$    29,068


(3.1)


9.1

Used vehicle retail


$    16,401


$    19,050


(13.9)


(2.0)










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$      1,623


$      1,970


(17.6)


(6.8)

Used vehicle retail sales


954


791


20.6


34.6

Used vehicle wholesale sales


186


369


(49.6)


(41.5)

Total used


810


684


18.4


32.4

Finance and insurance (per retail unit)


$         441


$         395


11.6


25.7










OTHER: 









SG&A expenses


$    31,984


$    34,543


(7.4)


5.0

Adjusted SG&A expenses(2)


$    31,710


$    34,543


(8.2)


4.2

SG&A as % revenues


10.7


9.4





Adjusted SG&A as % revenues (2)


10.6


9.4





SG&A as % gross profit


99.4


84.6





Adjusted SG&A as % gross profit (2)


98.5


84.6





Operating margin %


(0.4)


1.4





Adjusted operating margin % (2)


(0.1)


1.4






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

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

(3)We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods.  The non-GAAP financial measures presented above should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with U.S. GAAP. 

 

Group 1 Automotive, Inc.

Additional Information - Same Store Consolidated (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended September 30,



2016


2015


% Increase/
(Decrease)


Constant Currency % (3)
Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$  1,476,098


$  1,566,527


(5.8)


(4.3)

Used vehicle retail sales


665,275


673,302


(1.2)


0.7

Used vehicle wholesale sales


95,536


97,082


(1.6)


2.2

Total used


760,811


770,384


(1.2)


0.9

Parts and service


303,418


295,689


2.6


3.8

Finance and insurance


104,547


106,058


(1.4)


(0.6)

Total


$  2,644,874


$  2,738,658


(3.4)


(1.8)










GROSS MARGIN %:









New vehicle retail sales


5.1


5.0





Used vehicle retail sales


6.7


6.8





Used vehicle wholesale sales


(1.5)


(1.7)





Total used


5.6


5.7





Parts and service


54.2


54.9





Finance and insurance


100.0


100.0





Total


14.6


14.3














GROSS PROFIT:









New vehicle retail sales


$       74,692


$       78,346


(4.7)


(2.9)

Used vehicle retail sales


44,325


45,729


(3.1)


(1.6)

Used vehicle wholesale sales


(1,467)


(1,610)


8.9


7.9

Total used


42,858


44,119


(2.9)


(1.4)

Parts and service


164,366


162,392


1.2


2.5

Finance and insurance


104,547


106,058


(1.4)


(0.6)

Total


$     386,463


$     390,915


(1.1)


0.1










UNITS SOLD:









Retail new vehicles sold


41,989


45,870


(8.5)



Retail used vehicles sold


31,567


31,791


(0.7)



Wholesale used vehicles sold


14,015


14,431


(2.9)



Total used


45,582


46,222


(1.4)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$       35,154


$       34,151


2.9


4.6

Used vehicle retail


$       21,075


$       21,179


(0.5)


1.4










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$         1,779


$         1,708


4.2


6.0

Used vehicle retail sales


1,404


1,438


(2.4)


(0.9)

Used vehicle wholesale sales


(105)


(112)


6.3


5.1

Total used


940


955


(1.6)


(0.0)

Finance and insurance (per retail unit)


$         1,421


$         1,366


4.0


5.0










OTHER: 









SG&A expenses


$     281,098


$     280,286


0.3


1.6

Adjusted SG&A expenses(2)


$     280,374


$     280,286


0.0


1.4

SG&A as % revenues


10.6


10.2





Adjusted SG&A as % revenues (2)


10.6


10.2





SG&A as % gross profit


72.7


71.7





Adjusted SG&A as % gross profit (2)


72.5


71.7





Operating margin %


3.1


3.6





Adjusted operating margin % (2)


3.6


3.6

























Nine Months Ended September 30,



2016


2015


% Increase/
(Decrease)


Constant Currency % (3)
Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$  4,191,715


$  4,373,969


(4.2)


(2.4)

Used vehicle retail sales


1,986,471


1,954,206


1.7


3.4

Used vehicle wholesale sales


272,485


293,430


(7.1)


(4.7)

Total used


2,258,956


2,247,636


0.5


2.3

Parts and service


898,003


865,549


3.7


5.1

Finance and insurance


302,730


303,240


(0.2)


0.7

Total


$  7,651,404


$  7,790,394


(1.8)


(0.1)










GROSS MARGIN %:









New vehicle retail sales


5.1


5.0





Used vehicle retail sales


6.9


7.0





Used vehicle wholesale sales


0.0


0.0





Total used


6.1


6.1





Parts and service


53.9


54.3





Finance and insurance


100.0


100.0





Total


14.9


14.5














GROSS PROFIT:









New vehicle retail sales


$     215,220


$     220,825


(2.5)


(0.5)

Used vehicle retail sales


137,034


136,489


0.4


1.7

Used vehicle wholesale sales


115


135


(14.8)


27.5

Total used


137,149


136,624


0.4


1.7

Parts and service


484,283


470,250


3.0


4.2

Finance and insurance


302,730


303,240


(0.2)


0.7

Total


$  1,139,382


$  1,130,939


0.7


2.0










UNITS SOLD:









Retail new vehicles sold


119,724


127,997


(6.5)



Retail used vehicles sold


94,312


92,103


2.4



Wholesale used vehicles sold


40,011


42,331


(5.5)



Total used


134,323


134,434


(0.1)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$       35,011


$       34,172


2.5


4.3

Used vehicle retail


$       21,063


$       21,218


(0.7)


0.9










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$         1,798


$         1,725


4.2


6.4

Used vehicle retail sales


1,453


1,482


(2.0)


(0.7)

Used vehicle wholesale sales


3


3


-


34.9

Total used


1,021


1,016


0.5


1.8

Finance and insurance (per retail unit)


$         1,414


$         1,378


2.6


3.5










OTHER: 









SG&A expenses


$     835,506


$     816,735


2.3


3.8

Adjusted SG&A expenses(2)


$     828,383


$     814,212


1.7


3.3

SG&A as % revenues


10.9


10.5





Adjusted SG&A as % revenues (2)


10.8


10.5





SG&A as % gross profit


73.3


72.2





Adjusted SG&A as % gross profit (2)


72.7


72.0





Operating margin %


3.3


3.6





Adjusted operating margin % (2)


3.6


3.6






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

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

(3)We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods.  The non-GAAP financial measures presented above should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with U.S. GAAP. 

 

Group 1 Automotive, Inc.

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

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended September 30,



2016


2015


% Increase/
(Decrease)

SG&A RECONCILIATION:







As reported

$ 246,501


$ 248,771


(0.9)


  Pre-tax adjustments:







 Catastrophic events 

(450)





 Gain (loss) on real estate and dealership transactions 

1,176





Adjusted SG&A (1)

$ 247,227


$ 248,771


(0.6)








SG&A AS % REVENUES:







Unadjusted

10.8


10.6




Adjusted (1)

10.9


10.6



SG&A AS % GROSS PROFIT:







Unadjusted

71.1


71.4




Adjusted (1)

71.3


71.4



OPERATING MARGIN %







Unadjusted

3.4


3.8




Adjusted (1), (2)

3.9


3.8



PRETAX MARGIN %:







Unadjusted

2.3


2.9




Adjusted (1), (2)

2.8


2.9










SAME STORE SG&A RECONCILIATION:







As reported

$ 243,405


$ 242,056


0.6


  Pre-tax adjustments:







 Catastrophic events 

(450)





Adjusted Same Store SG&A (1)

$ 242,955


$ 242,056


0.4








SAME STORE SG&A AS % REVENUES:







Unadjusted

10.8


10.6




Adjusted (1)

10.8


10.6



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

71.2


70.7




Adjusted (1)

71.1


70.7



SAME STORE OPERATING MARGIN %







Unadjusted

3.4


3.9




Adjusted (1), (3)

3.9


3.9



















 Nine Months Ended September 30, 



2016


2015


% Increase/
(Decrease)

SG&A RECONCILIATION:







As reported

$ 737,730


$ 718,607


2.7


  Pre-tax adjustments:







 Catastrophic events 

(5,873)


(951)




 Gain (loss) on real estate and dealership transactions 

1,856


1,052




 Acquisition costs 

(30)





 Legal settlements 


(1,000)




Adjusted SG&A (1)

$ 733,683


$ 717,708


2.2








SG&A AS % REVENUES:







Unadjusted

11.2


10.8




Adjusted (1)

11.2


10.8



SG&A AS % OF GROSS PROFIT:







Unadjusted

72.0


71.5




Adjusted (1)

71.6


71.4



OPERATING MARGIN %:







 Unadjusted 

3.7


3.8




Adjusted (1), (2)

3.9


3.9



PRETAX MARGIN %:







Unadjusted

2.5


2.9




Adjusted (1), (2)

2.8


2.9










SAME STORE SG&A RECONCILIATION:







As reported

$ 722,654


$ 700,646


3.1


  Pre-tax adjustments:







 Catastrophic events 

(5,873)


(951)




 Gain (loss) on real estate and dealership transactions 

(385)


(364)




 Acquisition costs 

(30)





 Legal settlements 


(1,000)




Adjusted Same Store SG&A (1)

$ 716,366


$ 698,331


2.6








SAME STORE SG&A AS % REVENUES:







Unadjusted

11.3


10.8




Adjusted (1)

11.2


10.8



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

72.2


71.1




Adjusted (1)

71.5


70.8



SAME STORE OPERATING MARGIN %







Unadjusted

3.7


3.9




Adjusted (1), (3)

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 U.S. GAAP, but are instead considered non-GAAP financial performance measures.  As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable U.S. GAAP measures.  We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations. 

(2)

Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $10,856 and $12,389 for the three and nine months ended September 30, 2016 and $288 and $786 for the three and nine months ended September 30, 2015.

(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $10,776 and $12,310 for the three and nine months ended September 30, 2016 and $288 and $786 for the three and nine months ended September 30, 2015.

 

Group 1 Automotive, Inc.

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

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended September 30,



2016


2015


% Increase/
(Decrease)

OPERATING MARGIN %







Unadjusted

1.4


2.1




Adjusted (1), (2)

1.4


2.2



PRETAX MARGIN %:







Unadjusted

0.9


1.6




Adjusted (1), (2)

0.9


1.7










SAME STORE OPERATING MARGIN %







Unadjusted

2.2


2.1




Adjusted (1), (3)

2.2


2.2



















 Nine Months Ended September 30, 



2016


2015


% Increase/
(Decrease)

SG&A RECONCILIATION:














As reported

$ 119,154


$ 81,528


46.2


  Pre-tax adjustments:







 Severance costs 


(208)




 Acquisition costs 

(561)





Adjusted SG&A (1)

$ 118,593


$ 81,320


45.8








SG&A AS % REVENUES:







Unadjusted

8.9


8.7




Adjusted (1)

8.9


8.7



SG&A AS % OF GROSS PROFIT:







Unadjusted

80.2


78.1




Adjusted (1)

79.8


77.9



OPERATING MARGIN %:







Unadjusted

1.8


2.1




Adjusted (1), (2)

1.9


2.1



PRETAX MARGIN %:







Unadjusted

1.3


1.6




Adjusted (1), (2)

1.3


1.7










SAME STORE SG&A RECONCILIATION:







As reported

$   80,868


$ 81,546


(0.8)


  Pre-tax adjustments:







 Severance costs 


(208)




 Acquisition costs 

(561)





Adjusted Same Store SG&A (1)

$   80,307


$ 81,338


(1.3)








SAME STORE SG&A AS % REVENUES:







Unadjusted

8.7


8.7




Adjusted (1)

8.6


8.7



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

76.5


78.2




Adjusted (1)

75.9


78.0



SAME STORE OPERATING MARGIN %







Unadjusted

2.3


2.1




Adjusted (1), (3)

2.4


2.1





(1)

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

(2)

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

(3)

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

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Brazil

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended September 30,



2016


2015


% Increase/
(Decrease)

SG&A RECONCILIATION:







As reported

$  12,896


$  12,117


6.4


  Pre-tax adjustments:







 Foreign transaction tax 

(274)





Adjusted SG&A (1)

$  12,622


$  12,117


4.2








SG&A AS % REVENUES:







Unadjusted

11.5


9.4




Adjusted (1)

11.2


9.4



SG&A AS % GROSS PROFIT:







Unadjusted

103.6


87.8




Adjusted (1)

101.4


87.8



OPERATING MARGIN %







Unadjusted

(0.6)


0.8




Adjusted (1), (2)

(0.4)


1.0



PRETAX MARGIN %:







Unadjusted

(0.8)


0.4




Adjusted (1), (2)

(0.5)


0.6










SAME STORE SG&A RECONCILIATION:







As reported

$  12,105


$  10,100


19.9


  Pre-tax adjustments:







 Foreign transaction tax 

(274)





Adjusted Same Store SG&A (1)

$  11,831


$  10,100


17.1








SAME STORE SG&A AS % REVENUES:







Unadjusted

11.6


8.5




Adjusted (1)

11.3


8.5



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

103.3


81.9




Adjusted (1)

100.9


81.9



SAME STORE OPERATING MARGIN %







Unadjusted

(0.6)


1.5




Adjusted (1), (3)

(0.3)


1.6



















 Nine Months Ended September 30, 



2016


2015


% Increase/
(Decrease)

SG&A RECONCILIATION:







As reported

$  34,808


$  40,915


(14.9)


  Pre-tax adjustments:







 Gain (loss) on real estate and dealership transactions 

(372)





 Foreign transaction tax 

(274)





Adjusted SG&A (1)

$  34,162


$  40,915


(16.5)








SG&A AS % REVENUES:







Unadjusted

11.1


10.4




Adjusted (1)

10.9


10.4



SG&A AS % OF GROSS PROFIT:







Unadjusted

104.6


91.9




Adjusted (1)

102.6


91.9



OPERATING MARGIN %:







Unadjusted

(0.9)


0.3




Adjusted (1), (2)

(0.5)


0.6



PRETAX MARGIN %:







Unadjusted

(1.0)


(0.2)




Adjusted (1), (2)

(0.7)


0.0










SAME STORE SG&A RECONCILIATION:







As reported

$  31,984


$  34,543


(7.4)


  Pre-tax adjustments:







 Foreign transaction tax 

(274)





Adjusted Same Store SG&A (1)

$  31,710


$  34,543


(8.2)








SAME STORE SG&A AS % REVENUES:







Unadjusted

10.7


9.4




Adjusted (1)

10.6


9.4



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

99.4


84.6




Adjusted (1)

98.5


84.6



SAME STORE OPERATING MARGIN %







Unadjusted

(0.4)


1.4




Adjusted (1), (3)

(0.1)


1.4





(1)

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

(2)

Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $423 for the nine months ended September 30, 2016 and $298 and $839 for the three and nine months ended September 30, 2015.

(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $423 for the nine months ended September 30, 2016 and $215 for the three and nine months ended September 30, 2015.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - CONSOLIDATED

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended September 30,



2016


2015


% Increase/
(Decrease)








NET INCOME RECONCILIATION:







As reported

$    35,366


$    45,261


(21.9)


  Pre-tax adjustments:







 Catastrophic events 







 Pre-tax 

450





 Tax impact 

(169)





 (Gain) loss on real estate and dealership transactions 







 Pre-tax 

(1,114)





 Tax impact 

418





 Foreign transaction tax 







 Pre-tax 

274





 Tax impact 





 Non-cash asset impairment 







 Pre-tax 

10,793


916




 Tax impact 

(4,047)


(140)




Adjusted net income (1)

$    41,971


$    46,037


(8.8)








ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED







COMMON SHARES RECONCILIATION:







Adjusted net income (1)

$    41,971


$    46,037


(8.8)


Less: Adjusted earnings allocated to participating securities

1,695


1,759


(3.7)


Adjusted net income available to diluted common shares (1)

$    40,276


$    44,278


(9.0)








 DILUTED (LOSS) INCOME PER COMMON SHARE RECONCILIATION: 






As reported

$        1.65


$        1.88


(12.2)


  Pre-tax adjustments:







 Catastrophic events 

0.01





 Gain (loss) on real estate and dealership transactions 

(0.03)





 Foreign transaction tax 

0.01





 Non-cash asset impairment 

0.32


0.03




Adjusted diluted income per share (1)

$        1.96


$        1.91


2.6








SG&A RECONCILIATION:







As reported

$  299,006


$  289,012


3.5


  Pre-tax adjustments:







 Catastrophic events 

(450)





 Gain (loss) on real estate and dealership transactions 

1,176





 Foreign transaction tax 

(274)





Adjusted SG&A (1)

$  299,458


$  289,012


3.6








SG&A AS % REVENUES:







Unadjusted

10.6


10.3




Adjusted (1)

10.6


10.3



SG&A AS % GROSS PROFIT:







Unadjusted

73.5


72.5




Adjusted (1)

73.6


72.5



OPERATING MARGIN %







Unadjusted

3.0


3.5




Adjusted (1), (2)

3.3


3.5



PRETAX MARGIN %:







Unadjusted

2.0


2.6




Adjusted (1), (2)

2.3


2.6










SAME STORE SG&A RECONCILIATION:







As reported

$  281,098


$  280,286


0.3


  Pre-tax adjustments:







 Catastrophic events 

(450)





 Foreign transaction tax 

(274)





Adjusted Same Store SG&A (1)

$  280,374


$  280,286


0.0








SAME STORE SG&A AS % REVENUES:







Unadjusted

10.6


10.2




Adjusted (1)

10.6


10.2



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

72.7


71.7




Adjusted (1)

72.5


71.7



SAME STORE OPERATING MARGIN %







Unadjusted

3.1


3.6




Adjusted (1), (3)

3.6


3.6



















 Nine Months Ended September 30, 



2016


2015


% Increase/
(Decrease)

NET INCOME RECONCILIATION:







As reported

$  116,237


$  127,385


(8.8)


  Pre-tax adjustments:







 Catastrophic events 







 Pre-tax 

5,873


951




 Tax impact 

(2,207)


(359)




 (Gain) loss on real estate and dealership transactions 







 Pre-tax 

(1,000)


(1,052)




 Tax impact 

672


452




 Severance costs 







 Pre-tax 


208




 Tax impact 


(41)




 Acquisition costs including related tax impact 







 Pre-tax 

591





 Tax impact 

(11)





 Legal settlements 







 Pre-tax 


1,000




 Tax impact 


(390)




 Foreign transaction tax 







 Pre-tax 

274





 Tax impact 





 Non-cash asset impairment 







 Pre-tax 

12,327


1,958




 Tax impact 

(4,634)


(334)




 Foreign deferred income tax benefit 







 Pre-tax 





 Tax impact 

(1,686)





Adjusted net income (1)

$  126,436


$  129,778


(2.6)








ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED







COMMON SHARES RECONCILIATION:







Adjusted net income (1)

$  126,436


$  129,778


(2.6)


Less: Adjusted earnings allocated to participating securities

5,061


4,997


1.3


Adjusted net income available to diluted common shares (1)

$  121,375


$  124,781


(2.7)








 DILUTED INCOME PER COMMON SHARE RECONCILIATION: 






As reported

$        5.22


$        5.26


(0.8)


  Pre-tax adjustments:







 Catastrophic events 

0.16


0.02




 Gain (loss) on real estate and dealership transactions 

(0.01)


(0.02)




 Severance costs 


0.01




 Acquisition costs including related tax impact 

0.02





 Legal settlements 


0.02




 Foreign transaction tax 

0.01





 Non-cash asset impairment 

0.35


0.07




 Foreign deferred income tax benefit 

(0.07)





Adjusted diluted income per share (1)

$        5.68


$        5.36


6.0















SG&A RECONCILIATION:







As reported

$  891,692


$  841,050


6.0


  Pre-tax adjustments:







 Catastrophic events 

(5,873)


(951)




 Gain (loss) on real estate and dealership transactions 

1,485


1,052




 Severance costs 


(208)




 Acquisition costs 

(591)





 Legal settlements 


(1,000)




 Foreign transaction tax 

(274)





Adjusted SG&A (1)

$  886,439


$  839,943


5.5








SG&A AS % REVENUES:







Unadjusted

10.9


10.6




Adjusted (1)

10.8


10.6



SG&A AS % OF GROSS PROFIT:







Unadjusted

73.9


72.9




Adjusted (1)

73.5


72.8



OPERATING MARGIN %:







Unadjusted

3.2


3.5




Adjusted (1), (2)

3.4


3.5



PRETAX MARGIN %:







Unadjusted

2.2


2.6




Adjusted (1), (2)

2.4


2.6










SAME STORE SG&A RECONCILIATION:







As reported

$  835,506


$  816,735


2.3


  Pre-tax adjustments:







 Catastrophic events 

(5,873)


(951)




 Gain (loss) on real estate and dealership transactions 

(385)


(364)




 Severance costs 


(208)




 Acquisition costs 

(591)





 Legal settlements 


(1,000)




 Foreign transaction tax 

(274)





Adjusted Same Store SG&A (1)

$  828,383


$  814,212


1.7








SAME STORE SG&A AS % REVENUES:







Unadjusted

10.9


10.5




Adjusted (1)

10.8


10.5



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

73.3


72.2




Adjusted (1)

72.7


72.0



SAME STORE OPERATING MARGIN %







Unadjusted

3.3


3.6




Adjusted (1), (3)

3.6


3.6





(1)

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

(2)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $10,856 and $12,389 for the three and nine months ended September 30, 2016 $288 and $786 for the three and nine months ended September 30, 2015.

(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $10,776 and $12,310 for the three and nine months ended September 30, 2016 and $288 and $786 for the three and nine months ended September 30, 2015.

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/group-1-automotive-reports-third-quarter-2016-results-300348242.html

SOURCE Group 1 Automotive, Inc.

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