Market Overview

Group 1 Automotive Reports Fourth Quarter and Full Year 2016 Financial Results

Share:

Sets Record Revenue of $10.9 Billion for 2016

HOUSTON, Feb. 2, 2017 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), ("Group 1" or the "Company"), an international, Fortune 500 automotive retailer, today reported 2016 fourth quarter net income of $30.8 million, diluted earnings per common share of $1.44, adjusted net income (a non-GAAP measure) of $37.3 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $1.74.

As shown in the attached non-GAAP reconciliation tables, the 2016 fourth quarter adjusted results exclude approximately $6.4 million of net after-tax adjustments, or $0.30 per share, for non-core items. These adjustments primarily consist of non-cash asset impairment charges of approximately $12.8 million after-tax, or $0.59 per share; and severance costs of approximately $1.2 million after-tax, or $0.06 per share. These adjustments were partially offset by gains related to both a settlement with an OEM of approximately $7.3 million after-tax, or $0.34 per share; and real estate and dealership transactions of approximately $0.3 million after-tax, or $0.01 per share.

For the full year of 2016, net income increased 56.5 percent from the comparable prior-year period, to $147.1 million; and diluted earnings per common share increased 71.0 percent, to $6.67. Full year 2016 adjusted net income decreased 1.1 percent, to $163.7 million; and adjusted diluted earnings per common share increased 8.0 percent, to an all-time high of $7.42. Total revenue grew 2.4 percent (4.7 percent on a constant currency basis), to a record $10.9 billion.

"We are pleased with our overall performance in 2016 given the economic and political challenges we faced in each of our regions. Despite those headwinds, we delivered record revenue of $10.9 billion and grew adjusted diluted earnings per share 8 percent to a new, all-time record of $7.42. We closed the year on a strong note, with fourth quarter adjusted EPS growth of 15 percent over last year, reflecting improved new vehicle margins and strong cost control," said Earl J. Hesterberg, Group 1's president and chief executive officer. "In addition, the progress we delivered on both our cost structure during the fourth quarter and the reduction of our U.S. new vehicle inventory, which ended the Quarter with a 65 day supply, has us well positioned as we enter 2017."

Consolidated Results for Fourth 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 was flat at $2.7 billion (2.6 percent).
  • Total gross profit grew 2.4 percent (4.4 percent), to $389.2 million.
  • New vehicle revenues decreased 1.7 percent (0.8 percent). New vehicle gross profit improved 3.7 percent (6.4 percent), to $83.1 million. While total new vehicles sales volume decreased, new vehicle gross profit per retail unit (PRU) grew 7.2 percent (10.1 percent), to $1,976.
  • Retail used vehicle revenues increased 0.8 percent (3.6 percent) on 0.5 percent higher unit sales. Retail used vehicle gross profit decreased 4.1 percent ((2.2) percent), to $39.0 million.
  • Parts and service gross profit increased 4.4 percent (6.5 percent) on revenue growth of 4.6 percent (6.5 percent). Same Store parts and service gross profit increased 3.6 percent (5.0 percent) on revenue growth of 4.0 percent (5.1 percent). U.S. Same Store parts and service gross profit increased 4.1 percent on revenue growth of 5.1 percent.
  • Finance and Insurance (F&I) gross profit PRU increased 4.8 percent (6.5 percent), to $1,440. U.S. F&I gross profit PRU increased $129, or 8.5 percent, to an all-time record of $1,644.
  • Selling, General and Administrative (SG&A) expenses as a percent of gross profit improved 190 basis points, to 71.7 percent. Adjusted SG&A expenses as a percent of gross profit improved 90 basis points, to 74.4 percent.

Consolidated Results for Full Year 2016 (year-over-year comparable basis)

  • Total revenue increased 2.4 percent (4.7 percent), to a record $10.9 billion.
  • Total gross profit grew 4.0 percent (5.7 percent).
  • New vehicle gross profit increased 3.6 percent (6.2 percent) on 0.7 percent (3.1 percent) higher revenues, as the Company retailed 172,053 new vehicles in 2016.
  • Retail used vehicle gross profit was 1.7 percent (3.3 percent) higher on a 4.5 percent (6.7 percent) revenue increase, as the Company retailed 129,131 used units in 2016, a 4.0 percent increase over 2015 levels.
  • Parts and service gross profit rose 5.9 percent (7.7 percent) on 6.3 percent (8.1 percent) higher revenues.
  • F&I revenues rose 2.9 percent (4.1 percent) on 0.8 percent more retail unit sales; U.S. F&I gross PRU was $1,599, an increase of $74 over 2015.
  • SG&A expenses as a percent of gross profit increased 30 basis points, to 73.4 percent. Adjusted U.S. SG&A expenses as a percent of gross profit improved 40 basis points, to 71.7 percent.
  • Operating margin improved 50 basis points to 3.1 percent. Adjusted operating margin remained flat at 3.4 percent.

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

  • United States:
    The Company's U.S. operations accounted for 81.2 percent of total revenues and 85.1 percent of total gross profit. Total U.S. revenues were $2.2 billion, a decrease of 4.1 percent, driven by a 6.8 percent decrease in retail new vehicle revenue. While new vehicle sales volume decreased, new vehicle gross profit PRU sold grew $225, or 12.3 percent per unit, to $2,049; and total gross profit of $331.3 million was only down 0.8 percent. New vehicle inventory improved 9 days from third-quarter levels and ended the quarter at 65 days' supply.

    SG&A expenses as a percent of gross profit improved 330 basis points to 68.6 percent and operating margin improved 90 basis points to 3.8 percent. Adjusted SG&A expenses as a percent of gross profit improved 210 basis points, to 71.9 percent. Adjusted operating margin improved 40 basis points to 3.8 percent.

  • United Kingdom:
    The Company's U.K. operations accounted for 14.5 percent of total revenues and 11.4 percent of total gross profit. Total U.K. revenues increased 35.9 percent (66.1 percent), to $387.5 million, and gross profit increased 33.3 percent (62.4 percent), to $44.4 million. On a constant currency basis, Same Store total revenue increased 15.1 percent, driven by revenue growth of 21.3 percent in new vehicles, 18.0 percent in F&I, and 7.7 percent in parts and service.

    Same Store SG&A expenses as a percent of gross profit increased 90 basis points to 82.6 percent and operating margin decreased 10 basis points to 1.6 percent.

  • Brazil:
    The Company's Brazilian operations were profitable during the fourth quarter and accounted for 4.3 percent of total revenues and 3.5 percent of total gross profit. The Company's Same Store new vehicle revenue declined 25.6 percent on a constant currency basis in a continued weak economic environment. Year-to-date, Brazil's new vehicle industry volumes have declined about 20 percent. On a constant currency basis, fourth quarter Same Store total revenue was down 19.1 percent, as F&I gross profit PRU growth of 19.7 percent partially offset the decline in new and used vehicles.

    The Company continues to improve its used vehicle operations in Brazil. On a Same Store constant currency basis, used vehicle retail margins increased 360 basis points to 7.1 percent and total used vehicle gross profit grew 97.3 percent.

Share Repurchase Authorization

For the full year of 2016, the Company repurchased 2,282,579 shares, or approximately 10 percent of its outstanding common shares, at an average price per common share of $55.90 for a total of $127.6 million. As of February 1, 2017, $22.4 million remains available under the Company's prior common stock share repurchase authorization.

Future repurchases may be made from time to time, based on market conditions, legal requirements and other corporate considerations, in the open market or in privately negotiated transactions, and subject to Board approval and covenant restrictions.

Corporate Development

As previously announced in October 2016, the Company acquired the Ford Basingstoke and Ford Newbury stores in the U.K., which were rebranded as Think Ford Basingstoke and Think Ford Newbury. These franchises are expected to generate approximately $65 million in annualized revenues.

During October 2016, the Company announced the divestiture of the Honda of Van Nuys store in California. Also during the fourth quarter, the Company disposed of Spire Skoda in the U.K. These franchises generated approximately $80 million in trailing-twelve-month revenues.

During 2016, the Company acquired a total of 21 franchises, which are expected to generate an estimated $660 million in annual revenues. The Company disposed of 10 franchises that generated approximately $240 million in trailing-twelve-month revenues.

Subsequently, in January 2017, the Company acquired a BMW motorcycle franchise in the state of Paraná in Brazil. The franchise, which is expected to generate approximately $5 million in annual revenues, will be moved into one of our existing BMW locations to expand dealership scale. On February 1, 2017, the Company disposed of its remaining two Nissan stores in Brazil, which generated approximately $25 million in trailing-twelve-month revenues.

Fourth Quarter 2016 Earnings Conference Call Details

Group 1's senior management will host a conference call today at 10 a.m. ET to discuss the fourth 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:

6564959

 

A telephonic replay will be available following the call through February 9, 2017 by dialing:

Domestic:

1-877-344-7529

International:

1-412-317-0088

Replay ID:

10100191

 

About Group 1 Automotive, Inc.
Group 1 owns and operates 157 automotive dealerships, 208 franchises, and 38 collision centers in the United States, the United Kingdom and Brazil that offer 31 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service contracts; provides automotive maintenance and repair services; and sells vehicle parts.

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

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

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

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

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

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

Media contacts:
Pete DeLongchamps
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 December 31, 


2016


2015


% Increase/

(Decrease)

REVENUES:






New vehicle retail sales

$ 1,507,513


$ 1,533,108


(1.7)

Used vehicle retail sales

651,144


645,844


0.8

Used vehicle wholesale sales

99,774


95,064


5.0

Parts and service

310,966


297,254


4.6

Finance, insurance and other, net

104,235


101,332


2.9

Total revenues

2,673,632


2,672,602


0.0







COST OF SALES:






New vehicle retail sales

1,424,445


1,452,982


(2.0)

Used vehicle retail sales

612,098


605,137


1.2

Used vehicle wholesale sales

103,754


96,896


7.1

Parts and service

144,154


137,454


4.9

Total cost of sales

2,284,451


2,292,469


(0.3)







GROSS PROFIT

389,181


380,133


2.4







SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

279,071


279,785


(0.3)







DEPRECIATION AND AMORTIZATION EXPENSE

13,166


11,798


11.6







ASSET IMPAIRMENTS

20,027


85,606


(76.6)







OPERATING INCOME

76,917


2,944


2,512.7







OTHER EXPENSE:






Floorplan interest expense

(11,189)


(10,216)


9.5

Other interest expense, net

(17,208)


(14,843)


15.9

INCOME (LOSS) BEFORE INCOME TAXES

48,520


(22,115)


319.4







PROVISION FOR INCOME TAXES

(17,692)


(11,272)


57.0







NET INCOME (LOSS)

$      30,828


$    (33,387)


192.3

Less: Earnings (loss) allocated to participating securities

$        1,220


$      (1,279)


195.4

Earnings (loss) available to diluted common shares

$      29,608


$    (32,108)


192.2

DILUTED EARNINGS (LOSS) PER SHARE

$          1.44


$        (1.41)


202.1

Weighted average dilutive common shares outstanding

20,592


22,718


(9.4)

Weighted average participating securities

858


897


(4.3)

Total weighted average shares outstanding

21,450


23,615


(9.2)








 Twelve Months Ended December 31, 


2016


2015


% Increase/

(Decrease)

REVENUES:






New vehicle retail sales

$ 6,046,075


$ 6,001,306


0.7

Used vehicle retail sales

2,757,713


2,638,969


4.5

Used vehicle wholesale sales

401,863


397,251


1.2

Parts and service

1,261,307


1,186,193


6.3

Finance, insurance and other, net

420,654


408,786


2.9

Total revenues

10,887,612


10,632,505


2.4







COST OF SALES:






New vehicle retail sales

5,729,697


5,695,829


0.6

Used vehicle retail sales

2,575,234


2,459,499


4.7

Used vehicle wholesale sales

406,305


399,171


1.8

Parts and service

581,307


544,034


6.9

Total cost of sales

9,292,543


9,098,533


2.1







GROSS PROFIT

1,595,069


1,533,972


4.0







SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

1,170,763


1,120,833


4.5







DEPRECIATION AND AMORTIZATION EXPENSE

51,234


47,239


8.5







ASSET IMPAIRMENTS

32,838


87,562


(62.5)







OPERATING INCOME

340,234


278,338


22.2







OTHER EXPENSE:






Floorplan interest expense

(44,927)


(39,264)


14.4

Other interest expense, net

(67,936)


(56,903)


19.4

INCOME BEFORE INCOME TAXES

227,371


182,171


24.8







PROVISION FOR INCOME TAXES

(80,306)


(88,172)


(8.9)







NET INCOME

$    147,065


$      93,999


56.5

Less: Earnings allocated to participating securities

$        5,869


$        3,595


63.3

Earnings available to diluted common shares

$    141,196


$      90,404


56.2

DILUTED EARNINGS PER SHARE

$          6.67


$          3.90


71.0

Weighted average dilutive common shares outstanding

21,170


23,152


(8.6)

Weighted average participating securities

886


924


(4.1)

Total weighted average shares outstanding

22,056


24,076


(8.4)

 

Group 1 Automotive, Inc.

Consolidated Balance Sheets

(Dollars in thousands)










December 31,

2016


December 31,

2015


% Increase/

(Decrease)

 ASSETS: 


(Unaudited)





 CURRENT ASSETS: 







 Cash and cash equivalents 


$            20,992


$            13,037


61.0

 Contracts in transit and vehicle receivables, net 


269,508


252,438


6.8

 Accounts and notes receivable, net 


173,364


157,768


9.9

 Inventories, net 


1,651,815


1,737,751


(4.9)

 Prepaid expenses and other current assets 


34,908


27,376


27.5

 Total current assets 


2,150,587


2,188,370


(1.7)

 PROPERTY AND EQUIPMENT, net 


1,125,883


1,033,981


8.9

 GOODWILL AND INTANGIBLE FRANCHISE RIGHTS 


1,161,639


1,162,503


(0.1)

 OTHER ASSETS 


23,794


11,862


100.6

 Total assets 


$       4,461,903


$       4,396,716


1.5








 LIABILITIES AND STOCKHOLDERS' EQUITY: 







 CURRENT LIABILITIES: 







 Floorplan notes payable - credit facility and other 


$       1,136,654


$       1,265,719


(10.2)

 Offset account related to floorplan notes payable - credit facility 


(59,626)


(110,759)


(46.2)

 Floorplan notes payable - manufacturer affiliates 


392,661


389,071


0.9

 Offset account related to floorplan notes payable - manufacturer affiliates 


(25,500)


(25,500)


0.0

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


72,419


54,991


31.7

 Current liabilities from interest rate risk management activities 


3,941



100.0

 Accounts payable 


356,099


280,423


27.0

 Accrued expenses 


176,469


185,323


(4.8)

 Total current liabilities 


2,053,117


2,039,268


0.7

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


540,465


538,933


0.3

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


295,591


295,156


0.1

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


333,326


317,290


5.1

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


43,427


48,155


(9.8)

 DEFERRED INCOME TAXES 


161,502


136,644


18.2

 LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES 


20,470


31,153


(34.3)

 OTHER LIABILITIES 


83,805


71,865


16.6

 STOCKHOLDERS' EQUITY: 







 Common stock 


257


257


-

 Additional paid-in capital 


290,899


291,092


(0.1)

 Retained earnings 


1,053,301


926,169


13.7

 Accumulated other comprehensive loss 


(146,944)


(137,984)


6.5

 Treasury stock 


(267,313)


(161,282)


65.7

 Total stockholders' equity 


$          930,200


$          918,252


1.3

 Total liabilities and stockholders' equity 


$       4,461,903


$       4,396,716


1.5

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)














Three Months Ended


Twelve Months Ended




December 31,


December 31,




2016 (%)


2015 (%)


2016 (%)


2015 (%)

NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:








Region

Geographic Market









East

Massachusetts


4.6


5.7


4.8


6.0


Georgia


4.5


4.4


4.3


4.5


Florida


2.8


2.6


2.6


2.1


New Hampshire


2.0


2.0


1.9


2.0


New Jersey


1.7


2.2


1.6


2.3


South Carolina


1.6


1.5


1.4


1.4


Louisiana


1.5


1.5


1.5


1.6


Mississippi


1.3


1.3


1.5


1.5


Alabama


0.9


0.9


0.9


0.8


Maryland


0.5


0.6


0.5


0.5




21.4


22.7


21.0


22.7











West

Texas


37.1


39.0


36.5


38.7


California


8.6


10.0


9.1


9.7


Oklahoma


6.4


7.5


6.8


7.6


Kansas


1.7


2.0


1.8


2.1


Louisiana


0.5


0.6


0.6


0.7




54.3


59.1


54.8


58.8











International

United Kingdom


18.7


9.9


18.4


10.7


Brazil


5.6


8.3


5.8


7.8




100.0


100.0


100.0


100.0











NEW VEHICLE UNIT SALES BRAND MIX:









Toyota/Scion/Lexus


25.8


26.2


24.9


26.5

BMW/MINI


14.4


12.3


13.5


11.6

Volkswagen/Audi/Porsche


11.2


6.7


11.0


6.9

Ford/Lincoln


10.8


10.9


11.0


11.4

Honda/Acura


8.8


11.0


9.9


10.9

Nissan


7.5


8.1


7.1


8.4

Chevrolet/GMC/Buick/Cadillac


7.0


8.0


7.4


7.6

Mercedes-Benz/smart/Sprinter


4.8


4.9


4.3


4.3

Chrysler/Dodge/Jeep/RAM


3.6


4.4


4.0


4.6

Hyundai/Kia


3.6


5.0


4.2


5.6

Other


2.5


2.5


2.7


2.2




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 December 31,



2016


2015


% Increase/

(Decrease)

REVENUES:







New vehicle retail sales


$ 1,207,922


$ 1,295,513


(6.8)

Used vehicle retail sales


532,913


542,796


(1.8)

Used vehicle wholesale sales


70,954


72,548


(2.2)

Total used


603,867


615,344


(1.9)

Parts and service


266,033


260,974


1.9

Finance, insurance and other, net


93,112


92,645


0.5

Total


$ 2,170,934


$ 2,264,476


(4.1)








GROSS MARGIN %:







New vehicle retail sales


5.4


5.0



Used vehicle retail sales


6.2


6.6



Used vehicle wholesale sales


(3.9)


(1.6)



Total used


5.0


5.6



Parts and service


53.8


54.3



Finance, insurance and other, net


100.0


100.0



Total


15.3


14.7










GROSS PROFIT:







New vehicle retail sales


$      65,101


$      64,947


0.2

Used vehicle retail sales


32,877


35,746


(8.0)

Used vehicle wholesale sales


(2,796)


(1,167)


(139.6)

Total used


30,081


34,579


(13.0)

Parts and service


143,023


141,789


0.9

Finance, insurance and other, net


93,112


92,645


0.5

Total 


$    331,317


$    333,960


(0.8)








UNITS SOLD:







Retail new vehicles sold


31,779


35,605


(10.7)

Retail used vehicles sold


24,866


25,564


(2.7)

Wholesale used vehicles sold


10,115


10,768


(6.1)

Total used


34,981


36,332


(3.7)








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$      38,010


$      36,386


4.5

Used vehicle retail


$      21,431


$      21,233


0.9








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$        2,049


$        1,824


12.3

Used vehicle retail sales


1,322


1,398


(5.4)

Used vehicle wholesale sales


(276)


(108)


(155.6)

Total used


860


952


(9.7)

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


$        1,644


$        1,515


8.5








OTHER: 







SG&A expenses


$    227,411


$    240,001


(5.2)

Adjusted SG&A expenses(1)


$    238,227


$    247,203


(3.6)

SG&A as % revenues


10.5


10.6



Adjusted SG&A as % revenues (1)


11.0


10.9



SG&A as % gross profit


68.6


71.9



Adjusted SG&A as % gross profit (1)


71.9


74.0



Operating margin %


3.8


2.9



Adjusted operating margin % (1)


3.8


3.4



Pretax margin %


2.7


1.9



Adjusted pretax margin % (1)


2.6


2.3










INTEREST EXPENSE:







Floorplan interest expense


$    (10,015)


$      (9,622)


4.1

Floorplan assistance


12,201


13,128


(7.1)

Net floorplan income


$        2,186


$        3,506


(37.6)

Other interest expense, net


$    (15,740)


$    (13,744)


14.5

















Twelve Months Ended December 31,



2016


2015


% Increase/

(Decrease)

REVENUES:







New vehicle retail sales


$ 4,766,047


$ 4,989,290


(4.5)

Used vehicle retail sales


2,242,508


2,204,728


1.7

Used vehicle wholesale sales


276,710


289,580


(4.4)

Total used


2,519,218


2,494,308


1.0

Parts and service


1,071,651


1,032,960


3.7

Finance, insurance and other, net


377,756


377,432


0.1

Total 


$ 8,734,672


$ 8,893,990


(1.8)








GROSS MARGIN %:







New vehicle retail sales


5.1


4.8



Used vehicle retail sales


6.9


7.2



Used vehicle wholesale sales


(1.2)


(0.5)



Total used


6.0


6.3



Parts and service


54.4


54.7



Finance, insurance and other, net


100.0


100.0



Total


15.5


15.1










GROSS PROFIT:







New vehicle retail sales


$    242,773


$    240,496


0.9

Used vehicle retail sales


155,709


157,652


(1.2)

Used vehicle wholesale sales


(3,439)


(1,334)


(157.8)

Total used


152,270


156,318


(2.6)

Parts and service


582,550


564,701


3.2

Finance, insurance and other, net


377,756


377,432


0.1

Total 


$ 1,355,349


$ 1,338,947


1.2








UNITS SOLD:







Retail new vehicles sold


130,471


142,256


(8.3)

Retail used vehicles sold


105,754


105,211


0.5

Wholesale used vehicles sold


41,009


44,310


(7.4)

Total used


146,763


149,521


(1.8)








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$      36,530


$      35,073


4.2

Used vehicle retail


$      21,205


$      20,955


1.2








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$        1,861


$        1,691


10.1

Used vehicle retail sales


1,472


1,498


(1.7)

Used vehicle wholesale sales


(84)


(30)


(180.0)

Total used


1,038


1,045


(0.7)

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


$        1,599


$        1,525


4.9








OTHER: 







SG&A expenses


$    965,139


$    958,608


0.7

Adjusted SG&A expenses(1)


$    971,908


$    964,911


0.7

SG&A as % revenues


11.0


10.8



Adjusted SG&A as % revenues (1)


11.1


10.8



SG&A as % gross profit


71.2


71.6



Adjusted SG&A as % gross profit (1)


71.7


72.1



Operating margin %


3.7


3.6



Adjusted operating margin % (1)


3.9


3.7



Pretax margin %


2.5


2.6



Adjusted pretax margin % (1)


2.7


2.7










INTEREST EXPENSE:







Floorplan interest expense


$    (40,444)


$    (36,062)


12.2

Floorplan assistance


48,377


49,631


(2.5)

Net floorplan income


$        7,933


$      13,569


(41.5)

Other interest expense, net


$    (62,320)


$    (52,277)


19.2








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

 

Group 1 Automotive, Inc.

Additional Information - U.K.

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended December 31,



2016


2015


% Increase/

(Decrease)


Constant Currency (1) 

% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$          222,831


$          149,465


49.1


82.1

Used vehicle retail sales


94,403


81,682


15.6


41.3

Used vehicle wholesale sales


27,762


22,013


26.1


54.3

Total used


122,165


103,695


17.8


44.1

Parts and service


33,182


25,200


31.7


60.9

Finance, insurance and other, net


9,314


6,706


38.9


68.9

Total


$          387,492


$          285,066


35.9


66.1










GROSS MARGIN %:









New vehicle retail sales


6.0


6.4





Used vehicle retail sales


4.8


5.1





Used vehicle wholesale sales


(4.4)


(3.2)





Total used


2.7


3.3





Parts and service


55.8


54.1





Finance, insurance and other, net


100.0


100.0





Total


11.5


11.7














GROSS PROFIT:









New vehicle retail sales


$            13,308


$              9,506


40.0


69.8

Used vehicle retail sales


4,497


4,172


7.8


31.7

Used vehicle wholesale sales


(1,235)


(699)


(76.7)


(114.4)

Total used


3,262


3,473


(6.1)


15.1

Parts and service


18,532


13,624


36.0


66.2

Finance, insurance and other, net


9,314


6,706


38.9


68.9

Total 


$            44,416


$            33,309


33.3


62.4










UNITS SOLD:









Retail new vehicles sold


7,880


4,293


83.6



Retail used vehicles sold


4,429


3,211


37.9



Wholesale used vehicles sold


3,780


2,678


41.2



Total used


8,209


5,889


39.4












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$            28,278


$            34,816


(18.8)


(0.8)

Used vehicle retail


$            21,315


$            25,438


(16.2)


2.4










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$              1,689


$              2,214


(23.7)


(7.5)

Used vehicle retail sales


1,015


1,299


(21.9)


(4.5)

Used vehicle wholesale sales


(327)


(261)


(25.3)


(51.9)

Total used


397


590


(32.7)


(17.4)

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


$                 757


$                 894


(15.3)


3.0










OTHER: 









SG&A expenses


$            39,482


$            27,191


45.2


77.2

Adjusted SG&A expenses(1)


$            39,137


$            27,191


43.9


75.7

SG&A as % revenues


10.2


9.5





Adjusted SG&A as % revenues (1)


10.1


9.5





SG&A as % gross profit


88.9


81.6





Adjusted SG&A as % gross profit (1)


88.1


81.6





Operating margin %


0.8


1.7





Adjusted operating margin % (1)


0.9


1.7





Pretax margin %


0.2


1.3





Adjusted pretax margin % (1)


0.3


1.3














INTEREST EXPENSE:









Floorplan interest expense


$            (1,085)


$               (587)


84.8


125.9

Floorplan assistance


182


259


(29.7)


(14.0)

Net floorplan expense


$               (903)


$               (328)


175.3


236.2

Other interest expense, net


$            (1,231)


$               (796)


54.6


88.6





















Twelve Months Ended December 31,



2016


2015


% Increase/

(Decrease)


Constant Currency (1) 

% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$          987,538


$          641,888


53.8


73.5

Used vehicle retail sales


434,203


351,311


23.6


39.2

Used vehicle wholesale sales


121,747


100,706


20.9


36.2

Total used


555,950


452,017


23.0


38.6

Parts and service


143,362


102,183


40.3


58.4

Finance, insurance and other, net


36,305


24,117


50.5


70.1

Total 


$       1,723,155


$       1,220,205


41.2


59.2










GROSS MARGIN %:









New vehicle retail sales


5.7


6.3





Used vehicle retail sales


5.0


5.2





Used vehicle wholesale sales


(1.0)


(1.1)





Total used


3.7


3.8





Parts and service


55.4


54.8





Finance, insurance and other, net


100.0


100.0





Total


11.2


11.3














GROSS PROFIT:









New vehicle retail sales


$            56,655


$            40,308


40.6


58.3

Used vehicle retail sales


21,826


18,335


19.0


33.7

Used vehicle wholesale sales


(1,181)


(1,083)


(9.0)


(38.8)

Total used


20,645


17,252


19.7


33.4

Parts and service


79,377


55,969


41.8


60.2

Finance, insurance and other, net


36,305


24,117


50.5


70.1

Total 


$          192,982


$          137,646


40.2


58.0










UNITS SOLD:









Retail new vehicles sold


31,574


18,701


68.8



Retail used vehicles sold


18,830


14,074


33.8



Wholesale used vehicles sold


15,108


11,360


33.0



Total used


33,938


25,434


33.4












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$            31,277


$            34,324


(8.9)


2.7

Used vehicle retail


$            23,059


$            24,962


(7.6)


4.1










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$              1,794


$              2,155


(16.8)


(6.2)

Used vehicle retail sales


1,159


1,303


(11.1)


(0.0)

Used vehicle wholesale sales


(78)


(95)


17.9


(4.4)

Total used


608


678


(10.3)


(0.0)

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


$                 720


$                 736


(2.2)


10.6










OTHER: 









SG&A expenses


$          158,636


$          108,719


45.9


65.1

Adjusted SG&A expenses(1)


$          157,730


$          108,511


45.4


64.5

SG&A as % revenues


9.2


8.9





Adjusted SG&A as % revenues (1)


9.2


8.9





SG&A as % gross profit


82.2


79.0





Adjusted SG&A as % gross profit (1)


81.7


78.8





Operating margin %


1.6


2.0





Adjusted operating margin % (1)


1.7


2.0





Pretax margin %


1.1


1.5





Adjusted pretax margin % (1)


1.1


1.6














INTEREST EXPENSE:









Floorplan interest expense


$            (4,222)


$            (2,276)


85.5


110.4

Floorplan assistance


825


843


(2.1)


9.4

Net floorplan expense


$            (3,397)


$            (1,433)


137.1


169.8

Other interest expense, net


$            (5,197)


$            (3,135)


65.8


87.3










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

 

Group 1 Automotive, Inc.

Additional Information - Brazil

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended December 31,



2016


2015


% Increase/

(Decrease)


Constant Currency (1) 

% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$   76,760


$   88,130


(12.9)


(25.1)

Used vehicle retail sales


23,828


21,366


11.5


(4.2)

Used vehicle wholesale sales


1,058


503


110.3


81.1

Total used


24,886


21,869


13.8


(2.2)

Parts and service


11,751


11,080


6.1


(9.1)

Finance, insurance and other, net


1,809


1,981


(8.7)


(21.7)

Total


$ 115,206


$ 123,060


(6.4)


(19.5)










GROSS MARGIN %:









New vehicle retail sales


6.1


6.4





Used vehicle retail sales


7.0


3.7





Used vehicle wholesale sales


4.8


6.8





Total used


6.9


3.8





Parts and service


44.7


39.6





Finance, insurance and other, net


100.0


100.0





Total


11.7


10.5














GROSS PROFIT:









New vehicle retail sales


$     4,659


$     5,673


(17.9)


(29.4)

Used vehicle retail sales


1,672


789


111.9


82.0

Used vehicle wholesale sales


51


34


50.0


27.2

Total used


1,723


823


109.4


79.7

Parts and service


5,257


4,387


19.8


3.0

Finance, insurance and other, net


1,809


1,981


(8.7)


(21.7)

Total 


$   13,448


$   12,864


4.5


(10.2)










UNITS SOLD:









Retail new vehicles sold


2,372


3,586


(33.9)



Retail used vehicles sold


1,082


1,465


(26.1)



Wholesale used vehicles sold


367


287


27.9



Total used


1,449


1,752


(17.3)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$   32,361


$   24,576


31.7


13.2

Used vehicle retail


$   22,022


$   14,584


51.0


29.7










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$     1,964


$     1,582


24.1


6.7

Used vehicle retail sales


1,545


539


186.6


146.4

Used vehicle wholesale sales


139


118


17.8


(0.5)

Total used


1,189


470


153.0


117.3

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


$        524


$        392


33.7


14.5










OTHER: 









SG&A expenses


$   12,178


$   12,593


(3.3)


(17.1)

Adjusted SG&A expenses(1)


$   12,178


$   11,847


2.8


(11.8)

SG&A as % revenues


10.6


10.2





Adjusted SG&A as % revenues (1)


10.6


9.6





SG&A as % gross profit


90.6


97.9





Adjusted SG&A as % gross profit (1)


90.6


92.1





Operating margin %


(8.2)


(54.8)





Adjusted operating margin % (1)


0.8


0.6





Pretax margin %


(8.5)


(55.0)





Adjusted pretax margin % (1)


0.5


0.3














INTEREST EXPENSE:









Floorplan interest expense


$        (89)


$          (7)


1,171.4


877.4

Floorplan assistance




-


-

Net floorplan expense


$        (89)


$          (7)


1,171.4


877.4

Other interest expense, net


$      (237)


$      (303)


(21.8)


(33.1)





















Twelve Months Ended December 31,



2016


2015


% Increase/

(Decrease)


Constant Currency (1)

% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$ 292,490


$ 370,128


(21.0)


(17.2)

Used vehicle retail sales


81,002


82,930


(2.3)


2.4

Used vehicle wholesale sales


3,406


6,965


(51.1)


(45.5)

Total used


84,408


89,895


(6.1)


(1.3)

Parts and service


46,294


51,050


(9.3)


(4.2)

Finance, insurance and other, net


6,593


7,237


(8.9)


(5.5)

Total 


$ 429,785


$ 518,310


(17.1)


(12.9)










GROSS MARGIN %:









New vehicle retail sales


5.8


6.7





Used vehicle retail sales


6.1


4.2





Used vehicle wholesale sales


5.2


7.1





Total used


6.1


4.4





Parts and service


39.0


42.1





Finance, insurance and other, net


100.0


100.0





Total


10.9


11.1














GROSS PROFIT:









New vehicle retail sales


$   16,950


$   24,673


(31.3)


(27.7)

Used vehicle retail sales


4,944


3,483


41.9


47.0

Used vehicle wholesale sales


178


497


(64.2)


(60.0)

Total used


5,122


3,980


28.7


33.7

Parts and service


18,073


21,489


(15.9)


(10.8)

Finance, insurance and other, net


6,593


7,237


(8.9)


(5.5)

Total 


$   46,738


$   57,379


(18.5)


(14.3)










UNITS SOLD:









Retail new vehicles sold


10,008


13,657


(26.7)



Retail used vehicles sold


4,547


4,868


(6.6)



Wholesale used vehicles sold


1,222


1,556


(21.5)



Total used


5,769


6,424


(10.2)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$   29,226


$   27,102


7.8


13.0

Used vehicle retail


$   17,814


$   17,036


4.6


9.6










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$     1,694


$     1,807


(6.3)


(1.3)

Used vehicle retail sales


1,087


715


52.0


57.4

Used vehicle wholesale sales


146


319


(54.2)


(49.0)

Total used


888


620


43.2


48.8

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


$        453


$        391


15.9


20.3










OTHER: 









SG&A expenses


$   46,988


$   53,506


(12.2)


(7.5)

Adjusted SG&A expenses(1)


$   46,342


$   52,760


(12.2)


(7.3)

SG&A as % revenues


10.9


10.3





Adjusted SG&A as % revenues (1)


10.8


10.2





SG&A as % gross profit


100.5


93.3





Adjusted SG&A as % gross profit (1)


99.2


92.0





Operating margin %


(2.9)


(12.8)





Adjusted operating margin % (1)


(0.2)


0.6





Pretax margin %


(3.0)


(13.2)





Adjusted pretax margin % (1)


(0.3)


0.1














INTEREST EXPENSE:









Floorplan interest expense


$      (261)


$      (926)


(71.8)


(67.5)

Floorplan assistance




-


-

Net floorplan expense


$      (261)


$      (926)


(71.8)


(67.5)

Other interest expense, net


$      (418)


$   (1,491)


(72.0)


(70.0)










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

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended December 31,



2016


2015


% Increase/

(Decrease)


Constant Currency % (1)

Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$     1,507,513


$     1,533,108


(1.7)


0.8

Used vehicle retail sales


651,144


645,844


0.8


3.6

Used vehicle wholesale sales


99,774


95,064


5.0


11.3

Total used


750,918


740,908


1.4


4.6

Parts and service


310,966


297,254


4.6


6.5

Finance, insurance and other, net


104,235


101,332


2.9


4.6

Total


$     2,673,632


$     2,672,602


0.0


2.6










GROSS MARGIN %:









New vehicle retail sales


5.5


5.2





Used vehicle retail sales


6.0


6.3





Used vehicle wholesale sales


(4.0)


(1.9)





Total used


4.7


5.2





Parts and service


53.6


53.8





Finance, insurance and other, net


100.0


100.0





Total


14.6


14.2














GROSS PROFIT:









New vehicle retail sales


$          83,068


$          80,126


3.7


6.4

Used vehicle retail sales


39,046


40,707


(4.1)


(2.2)

Used vehicle wholesale sales


(3,980)


(1,832)


(117.2)


(132.1)

Total used


35,066


38,875


(9.8)


(8.5)

Parts and service


166,812


159,800


4.4


6.5

Finance, insurance and other, net


104,235


101,332


2.9


4.6

Total 


$        389,181


$        380,133


2.4


4.4










UNITS SOLD:









Retail new vehicles sold


42,031


43,484


(3.3)



Retail used vehicles sold


30,377


30,240


0.5



Wholesale used vehicles sold


14,262


13,733


3.9



Total used


44,639


43,973


1.5












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$          35,867


$          35,257


1.7


4.3

Used vehicle retail


$          21,435


$          21,357


0.4


3.1










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$            1,976


$            1,843


7.2


10.1

Used vehicle retail sales


1,285


1,346


(4.5)


(2.6)

Used vehicle wholesale sales


(279)


(133)


(109.8)


(123.5)

Total used


786


884


(11.1)


(9.9)

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


$            1,440


$            1,374


4.8


6.5










OTHER: 









SG&A expenses


$        279,071


$        279,785


(0.3)


2.2

Adjusted SG&A expenses(1)


$        289,542


$        286,240


1.2


3.6

SG&A as % revenues


10.4


10.5





Adjusted SG&A as % revenues (1)


10.8


10.7





SG&A as % gross profit


71.7


73.6





Adjusted SG&A as % gross profit (1)


74.4


75.3





Operating margin %


2.9


0.1





Adjusted operating margin % (1)


3.2


3.1





Pretax margin %


1.8


(0.8)





Adjusted pretax margin % (1)


2.2


2.1














INTEREST EXPENSE:









Floorplan interest expense


$        (11,189)


$        (10,216)


9.5


11.7

Floorplan assistance


12,383


13,387


(7.5)


(7.5)

Net floorplan income


$            1,194


$            3,171


(62.3)


(69.5)

Other interest expense, net


$        (17,208)


$        (14,843)


15.9


17.5





















Twelve Months Ended December 31,



2016


2015


% Increase/

(Decrease)


Constant Currency % (1)

Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$     6,046,075


$     6,001,306


0.7


3.1

Used vehicle retail sales


2,757,713


2,638,969


4.5


6.7

Used vehicle wholesale sales


401,863


397,251


1.2


5.2

Total used


3,159,576


3,036,220


4.1


6.5

Parts and service


1,261,307


1,186,193


6.3


8.1

Finance, insurance and other, net


420,654


408,786


2.9


4.1

Total 


$   10,887,612


$   10,632,505


2.4


4.7










GROSS MARGIN %:









New vehicle retail sales


5.2


5.1





Used vehicle retail sales


6.6


6.8





Used vehicle wholesale sales


(1.1)


(0.5)





Total used


5.6


5.8





Parts and service


53.9


54.1





Finance, insurance and other, net


100.0


100.0





Total


14.7


14.4














GROSS PROFIT:









New vehicle retail sales


$        316,378


$        305,477


3.6


6.2

Used vehicle retail sales


182,479


179,470


1.7


3.3

Used vehicle wholesale sales


(4,442)


(1,920)


(131.4)


(146.9)

Total used


178,037


177,550


0.3


1.7

Parts and service


680,000


642,159


5.9


7.7

Finance, insurance and other, net


420,654


408,786


2.9


4.1

Total 


$     1,595,069


$     1,533,972


4.0


5.7










UNITS SOLD:









Retail new vehicles sold


172,053


174,614


(1.5)



Retail used vehicles sold


129,131


124,153


4.0



Wholesale used vehicles sold


57,339


57,226


0.2



Total used


186,470


181,379


2.8












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$          35,141


$          34,369


2.2


4.6

Used vehicle retail


$          21,356


$          21,256


0.5


2.6










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$            1,839


$            1,749


5.1


7.8

Used vehicle retail sales


1,413


1,446


(2.3)


(0.7)

Used vehicle wholesale sales


(77)


(34)


(126.5)


(146.5)

Total used


955


979


(2.5)


(1.1)

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


$            1,397


$            1,368


2.1


3.3










OTHER: 









SG&A expenses


$     1,170,763


$     1,120,833


4.5


6.5

Adjusted SG&A expenses(1)


$     1,175,980


$     1,126,182


4.4


6.5

SG&A as % revenues


10.8


10.5





Adjusted SG&A as % revenues (1)


10.8


10.6





SG&A as % gross profit


73.4


73.1





Adjusted SG&A as % gross profit (1)


73.7


73.4





Operating margin %


3.1


2.6





Adjusted operating margin % (1)


3.4


3.4





Pretax margin %


2.1


1.7





Adjusted pretax margin % (1)


2.3


2.5














INTEREST EXPENSE:









Floorplan interest expense


$        (44,927)


$        (39,264)


14.4


16.0

Floorplan assistance


49,202


50,474


(2.5)


(2.5)

Net floorplan income 


$            4,275


$          11,210


(61.9)


(67.3)

Other interest expense, net


$        (67,936)


$        (56,903)


19.4


20.6










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

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)










Three Months Ended December 31,



2016


2015


% Increase/

(Decrease)

REVENUES:







New vehicle retail sales


$  1,207,486


$  1,253,970


(3.7)

Used vehicle retail sales


532,880


527,051


1.1

Used vehicle wholesale sales


70,622


69,223


2.0

Total used


603,502


596,274


1.2

Parts and service


266,012


253,165


5.1

Finance, insurance and other, net


92,661


90,563


2.3

Total 


$  2,169,661


$  2,193,972


(1.1)








GROSS MARGIN %:







New vehicle retail sales


5.4


5.1



Used vehicle retail sales


6.2


6.6



Used vehicle wholesale sales


(3.9)


(1.4)



Total used


5.0


5.7



Parts and service


53.7


54.2



Finance, insurance and other, net


100.0


100.0



Total


15.2


14.8










GROSS PROFIT:







New vehicle retail sales


$       64,912


$       63,728


1.9

Used vehicle retail sales


32,880


34,963


(6.0)

Used vehicle wholesale sales


(2,748)


(985)


(179.0)

Total used


30,132


33,978


(11.3)

Parts and service


142,892


137,316


4.1

Finance, insurance and other, net


92,661


90,563


2.3

Total 


$     330,597


$     325,585


1.5








UNITS SOLD:







Retail new vehicles sold


31,765


34,175


(7.1)

Retail used vehicles sold


24,864


24,859


0.0

Wholesale used vehicles sold


10,090


10,277


(1.8)

Total used


34,954


35,136


(0.5)








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$       38,013


$       36,693


3.6

Used vehicle retail


$       21,432


$       21,202


1.1








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$         2,044


$         1,865


9.6

Used vehicle retail sales


1,322


1,406


(6.0)

Used vehicle wholesale sales


(272)


(96)


(183.3)

Total used


862


967


(10.9)

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


$         1,636


$         1,534


6.6








OTHER: 







SG&A expenses


$     229,943


$     238,889


(3.7)

Adjusted SG&A expenses(2)


$     237,970


$     238,047


(0.0)

SG&A as % revenues


10.6


10.9



Adjusted SG&A as % revenues (2)


11.0


10.9



SG&A as % gross profit


69.6


73.4



Adjusted SG&A as % gross profit (2)


72.0


73.1



Operating margin %


3.7


2.8



Adjusted operating margin % (2)


3.8


3.5












Twelve Months Ended December 31,



2016


2015


% Increase/

(Decrease)

REVENUES:







New vehicle retail sales


$  4,691,033


$  4,869,109


(3.7)

Used vehicle retail sales


2,203,802


2,155,468


2.2

Used vehicle wholesale sales


270,687


278,909


(2.9)

Total used


2,474,489


2,434,377


1.6

Parts and service


1,054,945


1,006,640


4.8

Finance, insurance and other, net


371,544


371,603


(0.0)

Total 


$  8,592,011


$  8,681,729


(1.0)








GROSS MARGIN %:







New vehicle retail sales


5.1


4.8



Used vehicle retail sales


6.9


7.2



Used vehicle wholesale sales


(1.2)


(0.3)



Total used


6.1


6.3



Parts and service


54.3


54.6



Finance, insurance and other, net


100.0


100.0



Total


15.5


15.1










GROSS PROFIT:







New vehicle retail sales


$     237,915


$     235,706


0.9

Used vehicle retail sales


152,960


154,958


(1.3)

Used vehicle wholesale sales


(3,120)


(834)


(274.1)

Total used


149,840


154,124


(2.8)

Parts and service


572,729


549,952


4.1

Finance, insurance and other, net


371,544


371,603


(0.0)

Total 


$  1,332,028


$  1,311,385


1.6








UNITS SOLD:







Retail new vehicles sold


128,928


138,599


(7.0)

Retail used vehicles sold


104,451


103,151


1.3

Wholesale used vehicles sold


40,457


42,928


(5.8)

Total used


144,908


146,079


(0.8)








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$       36,385


$       35,131


3.6

Used vehicle retail


$       21,099


$       20,896


1.0








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$         1,845


$         1,701


8.5

Used vehicle retail sales


1,464


1,502


(2.5)

Used vehicle wholesale sales


(77)


(19)


(305.3)

Total used


1,034


1,055


(2.0)

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


$         1,592


$         1,537


3.6








OTHER: 







SG&A expenses


$     952,597


$     939,535


1.4

Adjusted SG&A expenses(2)


$     954,336


$     936,378


1.9

SG&A as % revenues


11.1


10.8



Adjusted SG&A as % revenues (2)


11.1


10.8



SG&A as % gross profit


71.5


71.6



Adjusted SG&A as % gross profit (2)


71.6


71.4



Operating margin %


3.7


3.6



Adjusted operating margin % (2)


3.9


3.9










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

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

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended December 31,



2016


2015


% Increase/

(Decrease)


Constant Currency (2)

% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$     148,449


$     149,465


(0.7)


21.3

Used vehicle retail sales


71,210


81,682


(12.8)


6.6

Used vehicle wholesale sales


20,106


22,014


(8.7)


11.8

Total used


91,316


103,696


(11.9)


7.7

Parts and service


22,209


25,199


(11.9)


7.7

Finance, insurance and other, net


6,508


6,706


(3.0)


18.0

Total 


$     268,482


$     285,066


(5.8)


15.1










GROSS MARGIN %:









New vehicle retail sales


5.9


6.4





Used vehicle retail sales


5.2


5.1





Used vehicle wholesale sales


(2.2)


(3.2)





Total used


3.6


3.3





Parts and service


56.3


54.1





Finance, insurance and other, net


100.0


100.0





Total


11.6


11.7














GROSS PROFIT:









New vehicle retail sales


$         8,814


$         9,506


(7.3)


12.5

Used vehicle retail sales


3,718


4,172


(10.9)


8.9

Used vehicle wholesale sales


(447)


(699)


36.1


22.6

Total used


3,271


3,473


(5.8)


15.3

Parts and service


12,507


13,624


(8.2)


12.1

Finance, insurance and other, net


6,508


6,706


(3.0)


18.0

Total 


$       31,100


$       33,309


(6.6)


13.7










UNITS SOLD:









Retail new vehicles sold


5,105


4,293


18.9



Retail used vehicles sold


3,448


3,211


7.4



Wholesale used vehicles sold


2,761


2,678


3.1



Total used


6,209


5,889


5.4












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$       29,079


$       34,816


(16.5)


2.0

Used vehicle retail


$       20,653


$       25,438


(18.8)


(0.7)










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$         1,727


$         2,214


(22.0)


(5.4)

Used vehicle retail sales


1,078


1,299


(17.0)


1.4

Used vehicle wholesale sales


(162)


(261)


37.9


25.0

Total used


527


590


(10.7)


9.3

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


$            761


$            894


(14.9)


3.6










OTHER: 









SG&A expenses


$       25,682


$       27,223


(5.7)


15.1

Adjusted SG&A expenses(2)


$       25,621


$       27,223


(5.9)


14.9

SG&A as % revenues


9.6


9.5





Adjusted SG&A as % revenues (2)


9.5


9.5





SG&A as % gross profit


82.6


81.7





Adjusted SG&A as % gross profit (2)


82.4


81.7





Operating margin %


1.6


1.7





Adjusted operating margin % (2)


1.6


1.7
















Twelve Months Ended December 31,



2016


2015


% Increase/

(Decrease)


Constant Currency (2)

% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$     652,057


$     641,888


1.6


14.5

Used vehicle retail sales


332,439


351,311


(5.4)


6.5

Used vehicle wholesale sales


90,468


100,706


(10.2)


1.1

Total used


422,907


452,017


(6.4)


5.3

Parts and service


98,273


102,183


(3.8)


8.5

Finance, insurance and other, net


25,694


24,117


6.5


20.3

Total 


$  1,198,931


$  1,220,205


(1.7)


10.7










GROSS MARGIN %:









New vehicle retail sales


6.0


6.3





Used vehicle retail sales


5.3


5.2





Used vehicle wholesale sales


(0.1)


(1.1)





Total used


4.1


3.8





Parts and service


55.5


54.8





Finance, insurance and other, net


100.0


100.0





Total


11.4


11.3














GROSS PROFIT:









New vehicle retail sales


$       39,241


$       40,300


(2.6)


9.5

Used vehicle retail sales


17,514


18,335


(4.5)


7.4

Used vehicle wholesale sales


(100)


(1,083)


90.8


83.2

Total used


17,414


17,252


0.9


13.1

Parts and service


54,509


55,970


(2.6)


9.9

Finance, insurance and other, net


25,694


24,117


6.5


20.3

Total 


$     136,858


$     137,639


(0.6)


12.0










UNITS SOLD:









Retail new vehicles sold


20,401


18,701


9.1



Retail used vehicles sold


14,861


14,074


5.6



Wholesale used vehicles sold


11,645


11,360


2.5



Total used


26,506


25,434


4.2












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$       31,962


$       34,324


(6.9)


4.9

Used vehicle retail


$       22,370


$       24,962


(10.4)


0.8










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$         1,923


$         2,155


(10.8)


0.4

Used vehicle retail sales


1,179


1,303


(9.5)


1.7

Used vehicle wholesale sales


(9)


(95)


90.5


83.6

Total used


657


678


(3.1)


8.5

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


$            729


$            736


(1.0)


11.8










OTHER: 









SG&A expenses


$     106,551


$     108,770


(2.0)


10.6

Adjusted SG&A expenses(2)


$     105,929


$     108,562


(2.4)


10.2

SG&A as % revenues


8.9


8.9





Adjusted SG&A as % revenues (2)


8.8


8.9





SG&A as % gross profit


77.9


79.0





Adjusted SG&A as % gross profit (2)


77.4


78.9





Operating margin %


2.1


2.0





Adjusted operating margin % (2)


2.2


2.0














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

 

Group 1 Automotive, Inc.

Additional Information - Same Store Brazil (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended December 31,



2016


2015


% Increase/

(Decrease)


Constant Currency (2)  

% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$    72,232


$    83,451


(13.4)


(25.6)

Used vehicle retail sales


21,742


19,498


11.5


(4.2)

Used vehicle wholesale sales


1,058


302


250.3


200.8

Total used


22,800


19,800


15.2


(1.1)

Parts and service


10,971


9,452


16.1


(0.4)

Finance, insurance and other, net


1,786


1,779


0.4


(13.9)

Total 


$  107,789


$  114,482


(5.8)


(19.1)










GROSS MARGIN %:









New vehicle retail sales


6.1


6.4





Used vehicle retail sales


7.2


3.5





Used vehicle wholesale sales


4.9


7.3





Total used


7.1


3.5





Parts and service


45.2


40.0





Finance, insurance and other, net


100.0


100.0





Total


11.9


10.2














GROSS PROFIT:









New vehicle retail sales


$      4,432


$      5,365


(17.4)


(29.0)

Used vehicle retail sales


1,557


678


129.6


97.3

Used vehicle wholesale sales


52


22


136.4


98.5

Total used


1,609


700


129.9


97.3

Parts and service


4,954


3,783


31.0


12.6

Finance, insurance and other, net


1,786


1,779


0.4


(13.9)

Total 


$    12,781


$    11,627


9.9


(5.6)










UNITS SOLD:









Retail new vehicles sold


2,253


3,269


(31.1)



Retail used vehicles sold


1,013


1,273


(20.4)



Wholesale used vehicles sold


326


216


50.9



Total used


1,339


1,489


(10.1)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$    32,060


$    25,528


25.6


8.0

Used vehicle retail


$    21,463


$    15,317


40.1


20.4










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$      1,967


$      1,641


19.9


3.0

Used vehicle retail sales


1,537


533


188.4


147.9

Used vehicle wholesale sales


160


102


56.9


31.5

Total used


1,202


470


155.7


119.4

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


$         547


$         392


39.5


19.7










OTHER: 









SG&A expenses


$    11,409


$    10,135


12.6


(3.4)

Adjusted SG&A expenses(2)


$    11,409


$      9,985


14.3


(2.0)

SG&A as % revenues


10.6


8.9





Adjusted SG&A as % revenues (2)


10.6


8.7





SG&A as % gross profit


89.3


87.2





Adjusted SG&A as % gross profit (2)


89.3


85.9





Operating margin %


(8.2)


(56.4)





Adjusted operating margin % (2)


1.0


1.2
















Twelve Months Ended December 31,



2016


2015


% Increase/

(Decrease)


Constant Currency (2)  

% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$  276,791


$  349,858


(20.9)


(16.9)

Used vehicle retail sales


76,063


75,658


0.5


5.8

Used vehicle wholesale sales


3,116


5,354


(41.8)


(34.4)

Total used


79,179


81,012


(2.3)


3.1

Parts and service


43,977


44,542


(1.3)


4.8

Finance, insurance and other, net


6,447


6,568


(1.8)


2.3

Total 


$  406,394


$  481,980


(15.7)


(11.2)










GROSS MARGIN %:









New vehicle retail sales


5.9


6.7





Used vehicle retail sales


6.2


4.0





Used vehicle wholesale sales


6.2


7.3





Total used


6.2


4.2





Parts and service


39.6


42.8





Finance, insurance and other, net


100.0


100.0





Total


11.1


10.9














GROSS PROFIT:









New vehicle retail sales


$    16,221


$    23,419


(30.7)


(26.9)

Used vehicle retail sales


4,716


3,009


56.7


63.5

Used vehicle wholesale sales


192


390


(50.8)


(44.5)

Total used


4,908


3,399


44.4


51.1

Parts and service


17,398


19,050


(8.7)


(2.7)

Finance, insurance and other, net


6,447


6,568


(1.8)


2.3

Total 


$    44,974


$    52,436


(14.2)


(9.4)










UNITS SOLD:









Retail new vehicles sold


9,518


12,434


(23.5)



Retail used vehicles sold


4,325


4,221


2.5



Wholesale used vehicles sold


1,086


1,214


(10.5)



Total used


5,411


5,435


(0.4)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$    29,081


$    28,137


3.4


8.6

Used vehicle retail


$    17,587


$    17,924


(1.9)


3.3










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$      1,704


$      1,883


(9.5)


(4.5)

Used vehicle retail sales


1,090


713


52.9


59.5

Used vehicle wholesale sales


177


321


(44.9)


(37.9)

Total used


907


625


45.1


51.7

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


$         466


$         394


18.3


23.1










OTHER: 









SG&A expenses


$    43,393


$    44,677


(2.9)


2.7

Adjusted SG&A expenses(2)


$    43,119


$    44,527


(3.2)


2.5

SG&A as % revenues


10.7


9.3





Adjusted SG&A as % revenues (2)


10.6


9.2





SG&A as % gross profit


96.5


85.2





Adjusted SG&A as % gross profit (2)


95.9


84.9





Operating margin %


(2.4)


(12.3)





Adjusted operating margin % (2)


0.2


1.4














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

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

 

Group 1 Automotive, Inc.

Additional Information - Same Store Consolidated (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended December 31,



2016


2015


% Increase/

(Decrease)


Constant Currency (2)   

% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$   1,428,167


$   1,486,886


(3.9)


(2.4)

Used vehicle retail sales


625,832


628,231


(0.4)


1.7

Used vehicle wholesale sales


91,786


91,539


0.3


5.0

Total used


717,618


719,770


(0.3)


2.1

Parts and service


299,192


287,816


4.0


5.1

Finance, insurance and other, net


100,955


99,048


1.9


3.1

Total 


$   2,545,932


$   2,593,520


(1.8)


(0.1)










GROSS MARGIN %:









New vehicle retail sales


5.5


5.3





Used vehicle retail sales


6.1


6.3





Used vehicle wholesale sales


(3.4)


(1.8)





Total used


4.9


5.3





Parts and service


53.6


53.8





Finance, insurance and other, net


100.0


100.0





Total


14.7


14.3














GROSS PROFIT:









New vehicle retail sales


$        78,158


$        78,599


(0.6)


1.0

Used vehicle retail sales


38,155


39,813


(4.2)


(2.6)

Used vehicle wholesale sales


(3,143)


(1,662)


(89.1)


(95.3)

Total used


35,012


38,151


(8.2)


(6.9)

Parts and service


160,353


154,723


3.6


5.0

Finance, insurance and other, net


100,955


99,048


1.9


3.1

Total 


$      374,478


$      370,521


1.1


2.4










UNITS SOLD:









Retail new vehicles sold


39,123


41,737


(6.3)



Retail used vehicles sold


29,325


29,343


(0.1)



Wholesale used vehicles sold


13,177


13,171


0.0



Total used


42,502


42,514


(0.0)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$        36,505


$        35,625


2.5


4.1

Used vehicle retail


$        21,341


$        21,410


(0.3)


1.7










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$          1,998


$          1,883


6.1


7.8

Used vehicle retail sales


1,301


1,357


(4.1)


(2.6)

Used vehicle wholesale sales


(239)


(126)


(89.7)


(95.2)

Total used


824


897


(8.1)


(6.9)

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


$          1,475


$          1,393


5.9


7.1










OTHER: 









SG&A expenses


$      267,034


$      276,247


(3.3)


(1.9)

Adjusted SG&A expenses(2)


$      275,000


$      275,255


(0.1)


1.4

SG&A as % revenues


10.5


10.7





Adjusted SG&A as % revenues (2)


10.8


10.6





SG&A as % gross profit


71.3


74.6





Adjusted SG&A as % gross profit (2)


73.4


74.3





Operating margin %


3.0


0.1





Adjusted operating margin % (2)


3.4


3.2
















Twelve Months Ended December 31,



2016


2015


% Increase/

(Decrease)


Constant Currency (2)   

% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$   5,619,881


$   5,860,855


(4.1)


(2.5)

Used vehicle retail sales


2,612,304


2,582,437


1.2


2.9

Used vehicle wholesale sales


364,271


384,969


(5.4)


(2.3)

Total used


2,976,575


2,967,406


0.3


2.2

Parts and service


1,197,195


1,153,365


3.8


5.1

Finance, insurance and other, net


403,685


402,288


0.3


1.2

Total 


$ 10,197,336


$ 10,383,914


(1.8)


(0.1)










GROSS MARGIN %:









New vehicle retail sales


5.2


5.1





Used vehicle retail sales


6.7


6.8





Used vehicle wholesale sales


(0.8)


(0.4)





Total used


5.8


5.9





Parts and service


53.8


54.2





Finance, insurance and other, net


100.0


100.0





Total


14.8


14.5














GROSS PROFIT:









New vehicle retail sales


$      293,377


$      299,425


(2.0)


(0.1)

Used vehicle retail sales


175,190


176,302


(0.6)


0.7

Used vehicle wholesale sales


(3,028)


(1,527)


(98.3)


(102.1)

Total used


172,162


174,775


(1.5)


(0.2)

Parts and service


644,636


624,972


3.1


4.4

Finance, insurance and other, net


403,685


402,288


0.3


1.2

Total 


$   1,513,860


$   1,501,460


0.8


2.1










UNITS SOLD:









Retail new vehicles sold


158,847


169,734


(6.4)



Retail used vehicles sold


123,637


121,446


1.8



Wholesale used vehicles sold


53,188


55,502


(4.2)



Total used


176,825


176,948


(0.1)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$        35,379


$        34,530


2.5


4.2

Used vehicle retail


$        21,129


$        21,264


(0.6)


1.1










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$          1,847


$          1,764


4.7


6.8

Used vehicle retail sales


1,417


1,452


(2.4)


(1.1)

Used vehicle wholesale sales


(57)


(28)


(103.6)


(110.9)

Total used


974


988


(1.4)


(0.1)

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


$          1,429


$          1,382


3.4


4.4










OTHER: 









SG&A expenses


$   1,102,541


$   1,092,982


0.9


2.4

Adjusted SG&A expenses(2)


$   1,103,384


$   1,089,467


1.3


2.8

SG&A as % revenues


10.8


10.5





Adjusted SG&A as % revenues (2)


10.8


10.5





SG&A as % gross profit


72.8


72.8





Adjusted SG&A as % gross profit (2)


72.9


72.6





Operating margin %


3.2


2.7





Adjusted operating margin % (2)


3.6


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

 

Group 1 Automotive, Inc.

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

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended December 31,



2016


2015


% Increase/

(Decrease)

SG&A RECONCILIATION:







As reported

$ 227,411


$ 240,001


(5.2)


  Pre-tax adjustments:







   Catastrophic events 

-


(637)




   Gain on real estate and dealership transactions 

982


7,839




   Severance costs 

(1,837)


-




   Legal settlements (4)

11,671


-




Adjusted SG&A (1)

$ 238,227


$ 247,203


(3.6)








SG&A AS % REVENUES:







Unadjusted

10.5


10.6




Adjusted (1)

11.0


10.9



SG&A AS % GROSS PROFIT:







Unadjusted

68.6


71.9




Adjusted (1)

71.9


74.0



OPERATING MARGIN %







Unadjusted

3.8


2.9




Adjusted (1), (2)

3.8


3.4



PRETAX MARGIN %:







Unadjusted

2.7


1.9




Adjusted (1), (2)

2.6


2.3










SAME STORE SG&A RECONCILIATION:














As reported

$ 229,943


$ 238,889


(3.7)


  Pre-tax adjustments:







   Catastrophic events 

-


(637)




   Loss on real estate and dealership transactions 

-


(205)




   Severance costs 

(1,837)


-




   Legal settlements (4)

9,864


-




Adjusted Same Store SG&A (1)

$ 237,970


$ 238,047


(0.0)








SAME STORE SG&A AS % REVENUES:







Unadjusted

10.6


10.9




Adjusted (1)

11.0


10.9



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

69.6


73.4




Adjusted (1)

72.0


73.1



SAME STORE OPERATING MARGIN %







Unadjusted

3.7


2.8




Adjusted (1), (3)

3.8


3.5












 Twelve Months Ended December 31, 



2016


2015


% Increase/

(Decrease)

SG&A RECONCILIATION:







As reported

$ 965,139


$ 958,608


0.7


  Pre-tax adjustments:







   Catastrophic events 

(5,873)


(1,588)




   Gain on real estate and dealership transactions 

2,838


8,891




   Severance costs 

(1,837)


-




   Acquisition costs 

(30)


-




   Legal settlements (4)

11,671


(1,000)




Adjusted SG&A (1)

$ 971,908


$ 964,911


0.7








SG&A AS % REVENUES:







Unadjusted

11.0


10.8




Adjusted (1)

11.1


10.8



SG&A AS % OF GROSS PROFIT:







Unadjusted

71.2


71.6




Adjusted (1)

71.7


72.1



OPERATING MARGIN %:







 Unadjusted 

3.7


3.6




Adjusted (1), (2)

3.9


3.7



PRETAX MARGIN %:







Unadjusted

2.5


2.6




Adjusted (1), (2)

2.7


2.7










SAME STORE SG&A RECONCILIATION:














As reported

$ 952,597


$ 939,535


1.4


  Pre-tax adjustments:







     Catastrophic events 

(5,873)


(1,588)




     Loss on real estate and dealership transactions 

(385)


(569)




     Severance costs 

(1,837)


-




     Acquisition costs 

(30)


-




     Legal settlements (4)

9,864


(1,000)




Adjusted Same Store SG&A (1)

$ 954,336


$ 936,378


1.9








SAME STORE SG&A AS % REVENUES:







Unadjusted

11.1


10.8




Adjusted (1)

11.1


10.8



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

71.5


71.6




Adjusted (1)

71.6


71.4



SAME STORE OPERATING MARGIN %







Unadjusted

3.7


3.6




Adjusted (1), (3)

3.9


3.9










(1)

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

(2)

Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $9,406 and $21,794 for the three and twelve months ended December 31, 2016, respectively, and $18,197 and $18,983 for the three and twelve months ended December 31, 2015, respectively.

(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $9,344 and $21,653 for the three and twelve months ended December 31, 2016, respectively, and $15,749 and $16,535 for the three and twelve months ended December 31, 2015, respectively.

 (4)

For the three months ended December 31, 2016, the Company recognized a net pre-tax gain related to a settlement with an OEM of $11.7 million ($9.9 million on a Same Store basis).

 

Group 1 Automotive, Inc.

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

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended December 31,



2016


2015


% Increase/

(Decrease)

SG&A RECONCILIATION:







As reported

$   39,482


$   27,191


45.2


  Pre-tax adjustments:







   Loss on real estate and dealership transactions 

(223)


-




   Severance costs 

(122)


-




Adjusted SG&A (1)

$   39,137


$   27,191


43.9








SG&A AS % REVENUES:







Unadjusted

10.2


9.5




Adjusted (1)

10.1


9.5



SG&A AS % GROSS PROFIT:







Unadjusted

88.9


81.6




Adjusted (1)

88.1


81.6



OPERATING MARGIN %







Unadjusted

0.8


1.7




Adjusted (1), (2)

0.9


1.7



PRETAX MARGIN %:







Unadjusted

0.2


1.3




Adjusted (1), (2)

0.3


1.3










SAME STORE SG&A RECONCILIATION:














As reported

$   25,682


$   27,223


(5.7)


  Pre-tax adjustments:







   Loss on real estate and dealership transactions 

(61)


-




Adjusted Same Store SG&A (1)

$   25,621


$   27,223


(5.9)








SAME STORE SG&A AS % REVENUES:







Unadjusted

9.6


9.5




Adjusted (1)

9.5


9.5



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

82.6


81.7




Adjusted (1)

82.4


81.7



SAME STORE OPERATING MARGIN %







Unadjusted

1.6


1.7




Adjusted (1), (3)

1.6


1.7












 Twelve Months Ended December 31, 



2016


2015


% Increase/

(Decrease)

SG&A RECONCILIATION:














As reported

$ 158,636


$ 108,719


45.9


  Pre-tax adjustments:







   Loss on real estate and dealership transactions 

(223)


-




   Severance costs 

(122)


(208)




   Acquisition costs 

(561)


-




Adjusted SG&A (1)

$ 157,730


$ 108,511


45.4








SG&A AS % REVENUES:







Unadjusted

9.2


8.9




Adjusted (1)

9.2


8.9



SG&A AS % OF GROSS PROFIT:







Unadjusted

82.2


79.0




Adjusted (1)

81.7


78.8



OPERATING MARGIN %:







Unadjusted

1.6


2.0




Adjusted (1), (2)

1.7


2.0



PRETAX MARGIN %:







Unadjusted

1.1


1.5




Adjusted (1), (2)

1.1


1.6










SAME STORE SG&A RECONCILIATION:














As reported

$ 106,551


$ 108,770


(2.0)


  Pre-tax adjustments:







   Loss on real estate and dealership transactions 

(61)


-




   Severance costs 

-


(208)




   Acquisition costs 

(561)


-




Adjusted Same Store SG&A (1)

$ 105,929


$ 108,562


(2.4)








SAME STORE SG&A AS % REVENUES:







Unadjusted

8.9


8.9




Adjusted (1)

8.8


8.9



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

77.9


79.0




Adjusted (1)

77.4


78.9



SAME STORE OPERATING MARGIN %







Unadjusted

2.1


2.0




Adjusted (1), (3)

2.2


2.0










(1)

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

(2)

Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $201 for the three and twelve months ended December 31, 2016, respectively, and $333 for the twelve months ended December 31, 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 twelve months ended December 31, 2015.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Brazil

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended December 31,



2016


2015


% Increase/

(Decrease)

SG&A RECONCILIATION:







As reported

$  12,178


$  12,593


(3.3)


  Pre-tax adjustments:







   Loss on real estate and dealership transactions 

-


(520)




   Severance costs 

-


(226)




Adjusted SG&A (1)

$  12,178


$  11,847


2.8








SG&A AS % REVENUES:







Unadjusted

10.6


10.2




Adjusted (1)

10.6


9.6



SG&A AS % GROSS PROFIT:







Unadjusted

90.6


97.9




Adjusted (1)

90.6


92.1



OPERATING MARGIN %







Unadjusted

(8.2)


(54.8)




Adjusted (1), (2)

0.8


0.6



PRETAX MARGIN %:







Unadjusted

(8.5)


(55.0)




Adjusted (1), (2)

0.5


0.3










SAME STORE SG&A RECONCILIATION:














As reported

$  11,409


$  10,135


12.6


  Pre-tax adjustments:







   Severance costs 

-


(150)




Adjusted Same Store SG&A (1)

$  11,409


$    9,985


14.3








SAME STORE SG&A AS % REVENUES:







Unadjusted

10.6


8.9




Adjusted (1)

10.6


8.7



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

89.3


87.2




Adjusted (1)

89.3


85.9



SAME STORE OPERATING MARGIN %







Unadjusted

(8.2)


(56.4)




Adjusted (1), (3)

1.0


1.2












 Twelve Months Ended December 31, 



2016


2015


% Increase/

(Decrease)

SG&A RECONCILIATION:







As reported

$  46,988


$  53,506


(12.2)


  Pre-tax adjustments:







   Loss on real estate and dealership transactions 

(372)


(520)




   Severance costs 

-


(226)




   Foreign transaction tax 

(274)


-




Adjusted SG&A (1)

$  46,342


$  52,760


(12.2)








SG&A AS % REVENUES:







Unadjusted

10.9


10.3




Adjusted (1)

10.8


10.2



SG&A AS % OF GROSS PROFIT:







Unadjusted

100.5


93.3




Adjusted (1)

99.2


92.0



OPERATING MARGIN %:







Unadjusted

(2.9)


(12.8)




Adjusted (1), (2)

(0.2)


0.6



PRETAX MARGIN %:







Unadjusted

(3.0)


(13.2)




Adjusted (1), (2)

(0.3)


0.1










SAME STORE SG&A RECONCILIATION:














As reported

$  43,393


$  44,677


(2.9)


  Pre-tax adjustments:







   Severance costs 

-


(150)




   Foreign transaction tax 

(274)


-




Adjusted Same Store SG&A (1)

$  43,119


$  44,527


(3.2)








SAME STORE SG&A AS % REVENUES:







Unadjusted

10.7


9.3




Adjusted (1)

10.6


9.2



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

96.5


85.2




Adjusted (1)

95.9


84.9



SAME STORE OPERATING MARGIN %







Unadjusted

(2.4)


(12.3)




Adjusted (1), (3)

0.2


1.4










(1)

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

(2)

Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $10,420 and $10,843 for the three and twelve months ended December 31, 2016, respectively, and $67,410 and $68,249 for the three and twelve months ended December 31, 2015, respectively.

(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $9,901 and $10,324 for the three and twelve months ended December 31, 2016, respectively, and $65,806 and $66,021 for the three and twelve months ended December 31, 2015, respectively.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - CONSOLIDATED

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended December 31,



2016


2015


% Increase/

(Decrease)








NET INCOME RECONCILIATION:







As reported

$      30,828


$    (33,387)


192.3


  Pre-tax adjustments:







   Catastrophic events 







   Pre-tax 

-


637




   Tax impact 

-


(239)




   Gain on real estate and dealership transactions 







   Pre-tax 

(529)


(7,319)




   Tax impact 

264


2,962




   Severance costs 







   Pre-tax 

1,959


227




   Tax impact 

(710)


(7)




   Legal settlements (4)







   Pre-tax 

(11,671)


-




   Tax impact 

4,359


-




   Non-cash asset impairment 







   Pre-tax 

19,797


85,607




   Tax impact 

(7,041)


(12,809)




  Adjusted net income (1)

$      37,256


$      35,672


4.4








ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION:







Adjusted net income (1)

$      37,256


$      35,672


4.4


Less: Adjusted earnings allocated to participating securities

1,477


1,344


9.9


Adjusted net income available to diluted common shares (1)

$      35,779


$      34,328


4.2








 DILUTED (LOSS) INCOME PER COMMON SHARE RECONCILIATION: 






As reported

$          1.44


$        (1.41)


202.1


  Pre-tax adjustments:







   Catastrophic events 

-


0.02




   Gain on real estate and dealership transactions 

(0.01)


(0.18)




   Severance costs 

0.06


0.01




   Legal settlements (4)

(0.34)


-




   Non-cash asset impairment 

0.59


3.07




Adjusted diluted income per share (1)

$          1.74


$          1.51


15.2








SG&A RECONCILIATION:







As reported

$    279,071


$    279,785


(0.3)


  Pre-tax adjustments:







   Catastrophic events 

-


(637)




   Gain on real estate and dealership transactions 

759


7,318




   Severance costs 

(1,959)


(226)




   Legal settlements (4)

11,671


-




Adjusted SG&A (1)

$    289,542


$    286,240


1.2








SG&A AS % REVENUES:







Unadjusted

10.4


10.5




Adjusted (1)

10.8


10.7



SG&A AS % GROSS PROFIT:







Unadjusted

71.7


73.6




Adjusted (1)

74.4


75.3



OPERATING MARGIN %







Unadjusted

2.9


0.1




Adjusted (1), (2)

3.2


3.1



PRETAX MARGIN %:







Unadjusted

1.8


(0.8)




Adjusted (1), (2)

2.2


2.1










SAME STORE SG&A RECONCILIATION:







As reported

$    267,034


$    276,247


(3.3)


  Pre-tax adjustments:







   Catastrophic events 

-


(637)




   Loss on real estate and dealership transactions 

(61)


(205)




   Severance costs 

(1,837)


(150)




   Legal settlements (4)

9,864


-




Adjusted Same Store SG&A (1)

$    275,000


$    275,255


(0.1)








SAME STORE SG&A AS % REVENUES:







Unadjusted

10.5


10.7




Adjusted (1)

10.8


10.6



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

71.3


74.6




Adjusted (1)

73.4


74.3



SAME STORE OPERATING MARGIN %







Unadjusted

3.0


0.1




Adjusted (1), (3)

3.4


3.2












 Twelve Months Ended December 31, 



2016


2015


% Increase/

(Decrease)

NET INCOME RECONCILIATION:







As reported

$    147,065


$      93,999


56.5


  Pre-tax adjustments:







   Catastrophic events 







   Pre-tax 

5,873


1,588




   Tax impact 

(2,207)


(597)




   Gain on real estate and dealership transactions 







   Pre-tax 

(1,530)


(8,372)




   Tax impact 

937


3,413




   Severance costs 







   Pre-tax 

1,959


435




   Tax impact 

(710)


(48)




   Acquisition costs including related tax impact 







   Pre-tax 

591


-




   Tax impact 

(11)


-




   Legal settlements (4)







   Pre-tax 

(11,671)


1,000




   Tax impact 

4,359


(390)




   Foreign transaction tax 







   Pre-tax 

274


-




   Tax impact 

-


-




   Non-cash asset impairment 







   Pre-tax 

32,124


87,565




   Tax impact 

(11,676)


(13,143)




   Foreign deferred income tax benefit 







   Pre-tax 

-


-




   Tax impact 

(1,686)


-




  Adjusted net income (1)

$    163,691


$    165,450


(1.1)








ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION:







Adjusted net income (1)

$    163,691


$    165,450


(1.1)


Less: Adjusted earnings allocated to participating securities

6,537


6,338


3.1


Adjusted net income available to diluted common shares (1)

$    157,154


$    159,112


(1.2)








 DILUTED INCOME PER COMMON SHARE RECONCILIATION: 






As reported

$          6.67


$          3.90


71.0


  Pre-tax adjustments:







   Catastrophic events 

0.17


0.04




   Gain on real estate and dealership transactions 

(0.03)


(0.21)




   Severance costs 

0.05


0.02




   Acquisition costs including related tax impact 

0.02


-




   Legal settlements (4)

(0.33)


0.03




   Foreign transaction tax 

0.01


-




   Non-cash asset impairment 

0.93


3.09




   Foreign deferred income tax benefit 

(0.07)


-




Adjusted diluted income per share (1)

$          7.42


$          6.87


8.0















SG&A RECONCILIATION:







As reported

$ 1,170,763


$ 1,120,833


4.5


  Pre-tax adjustments:







   Catastrophic events 

(5,873)


(1,588)




   Gain on real estate and dealership transactions 

2,243


8,372




   Severance costs 

(1,959)


(435)




   Acquisition costs 

(591)


-




   Legal settlements (4)

11,671


(1,000)




   Foreign transaction tax 

(274)


-




Adjusted SG&A (1)

$ 1,175,980


$ 1,126,182


4.4








SG&A AS % REVENUES:







Unadjusted

10.8


10.5




Adjusted (1)

10.8


10.6



SG&A AS % OF GROSS PROFIT:







Unadjusted

73.4


73.1




Adjusted (1)

73.7


73.4



OPERATING MARGIN %:







Unadjusted

3.1


2.6




Adjusted (1), (2)

3.4


3.4



PRETAX MARGIN %:







Unadjusted

2.1


1.7




Adjusted (1), (2)

2.3


2.5










SAME STORE SG&A RECONCILIATION:







As reported

$ 1,102,541


$ 1,092,982


0.9


  Pre-tax adjustments:







   Catastrophic events 

(5,873)


(1,588)




   Loss on real estate and dealership transactions 

(446)


(569)




   Severance costs 

(1,837)


(358)




   Acquisition costs 

(591)


-




   Legal settlements (4)

9,864


(1,000)




   Foreign transaction tax 

(274)


-




Adjusted Same Store SG&A (1)

$ 1,103,384


$ 1,089,467


1.3








SAME STORE SG&A AS % REVENUES:







Unadjusted

10.8


10.5




Adjusted (1)

10.8


10.5



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

72.8


72.8




Adjusted (1)

72.9


72.6



SAME STORE OPERATING MARGIN %







Unadjusted

3.2


2.7




Adjusted (1), (3)

3.6


3.5










(1)

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

(2)

Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $20,027 and $32,838 for the three and twelve months ended December 31, 2016, respectively, and $85,606 and $87,565 for the three and twelve months ended December 31, 2015, respectively.

(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $19,245 and $31,977 for the three and twelve months ended December 31, 2016, respectively, and $81,555 and $82,889 for the three and twelve months ended December 31, 2015, respectively.

(4)

For the three months ended December 31, 2016, the Company recognized a net pre-tax gain related to a settlement with an OEM of $11.7 million ($9.9 million on a Same Store basis).

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/group-1-automotive-reports-fourth-quarter-and-full-year-2016-financial-results-300401068.html

SOURCE Group 1 Automotive, Inc.

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