Market Overview

Group 1 Automotive Reports First Quarter 2017 Financial Results

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HOUSTON, April 28, 2017 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), ("Group 1" or the "Company"), an international, Fortune 500 automotive retailer, today reported 2017 first quarter net income of $33.9 million, diluted earnings per common share of $1.58, adjusted net income (a non-GAAP measure) of $32.8 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $1.53.

First quarter 2017 adjusted net income and diluted earnings per share exclude a non-core benefit of approximately $1.1 million after-tax, or $0.05 per share, related to a settlement with an Original Equipment Manufacturer (OEM). Reconciliations of non-GAAP financial measures are included in the attached financial tables.

"Although we had another strong performance in our U.S. new vehicle margins, a record quarter in the U.K., and a profitable quarter in Brazil, these factors were not enough to offset extreme weakness in vehicle sales in our energy price impacted markets. Combined new and used sales dropped 11 percent in Texas and Oklahoma, with the new vehicle industry declining 16 percent for the quarter in our largest single market of Houston. With a decrease of 13 percent in new vehicle sales at our Houston stores, we outperformed the local market, but we still need to make further adjustments to our businesses in the energy price impacted markets," said Earl J. Hesterberg, Group 1's president and chief executive officer. "As for our overseas markets, our U.K. operations had another record quarter, with revenue growth across all business segments and gross profit up double digits on a constant currency basis. And finally, in the face of continued pressure on Brazil's new vehicle industry during the quarter, we are also delighted to have achieved profitability in our Brazil Region by growing gross profit 13 percent on a Same Store constant currency basis reflecting tremendous performance in used vehicles, parts and service, and F&I, and by significantly leveraging our costs."

Consolidated Results for First Quarter 2017 (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 decreased 3.4 percent ((1.5) percent) to $2.5 billion; total gross profit decreased 1.4 percent ((0.1) percent) to $383.5 million.
  • New vehicle revenues decreased 5.2 percent ((3.1) percent) on a 6.1 percent decrease in unit sales. New vehicle gross profit decreased 3.5 percent ((1.3) percent) to $69.2 million, as improved new vehicle margins partially offset the volume decline. U.S. Same Store new vehicle margins were up 5.1 percent or $91 per unit to $1,862.
  • Retail used vehicle revenues decreased 4.0 percent ((2.0) percent) on a 3.7 percent decrease in unit sales. Retail used vehicle gross profit decreased 8.5 percent ((7.5) percent) to $45.0 million reflecting the impact of lower margins, down $74 per unit, in combination with the volume decline.
  • Parts and service gross profit increased 3.5 percent (4.9 percent) on revenue growth of 3.6 percent (4.7 percent). Same Store parts and service gross profit increased 3.4 percent (4.4 percent) on revenue growth of 3.8 percent (4.6 percent).
  • Same Store Finance and Insurance (F&I) gross profit per retail unit (PRU) increased 2.0 percent (2.8 percent) to $1,410 per retail unit. U.S. F&I gross profit per unit increased $73 to a first quarter record of $1,637.
  • Selling, General and Administrative (SG&A) expenses as a percent of gross profit increased 10 basis points to 75.6 percent. Adjusted SG&A expenses as a percent of gross profit (a non-GAAP measure) increased 120 basis points to 76.0 percent.

Segment Results for First Quarter 2017 (year-over-year comparable basis)

  • United States:
    The Company's U.S. operations accounted for 78.1 percent of total revenues and 83.6 percent of total gross profit. U.S. revenues were $2.0 billion, a decrease of 5.5 percent. The revenue decrease reflects 10.7 percent and 7.1 percent decreases in retail new and used vehicle unit sales, respectively. The vast majority of the sales decline came from the Company's oil-impacted markets of Texas and Oklahoma. Gross profit decreased 3.6 percent.
  • United Kingdom:
    The Company's U.K. operations accounted for 17.9 percent of total revenues and 13.1 percent of total gross profit. Despite a 14 percent weakening in the pound, total revenue grew 4.3 percent (20.5 percent) to $450.3 million, and gross profit increased 7.6 percent (24.3 percent). Revenue growth was primarily driven by 22.6 percent and 22.1 percent increases in new and used vehicle retail unit sales, respectively.
  • Brazil:
    The Company's Brazilian operations accounted for 4.0 percent of total revenues and 3.3 percent of total gross profit. Despite continued weakness in Brazil's new vehicle industry volumes, which contributed to decreased Same Store total revenue of 13.4 percent on a constant currency basis, gross profit increased 13.0 percent, reflecting strong growth in Same Store total used vehicles gross profit (up almost 180 percent), and a 17.6 percent increase in Same Store parts and sales gross profit. In addition, Same Store F&I gross profit PRU increased 64.5 percent on a constant currency basis. The increase in gross profit, coupled with significantly improved cost leverage, allowed the region to achieve profitability in the quarter.

Corporate Development

In January 2017, as previously announced, the Company acquired a BMW motorcycle franchise in Brazil, which is expected to generate approximately $5 million in annual revenues. In March 2017, the Company opened Think Ford Reading, an add point in the U.K., which is contiguous to our existing Ford market. This expands the Company's U.K. Ford network to seven dealerships. In April 2017, the Company also opened Cedar Park Nissan, an add point in Austin, Texas. This addition increases Group 1's U.S. Nissan network to nine dealerships. These add points are expected to generate approximately $60 million in annual revenues.

In February 2017, as previously announced, the Company disposed of two Nissan dealerships in Brazil. These stores generated approximately $25 million in trailing-twelve-month revenues.

Share Repurchase Authorization

As of April 28, 2017, $22.4 million remains available under the Company's prior common stock share repurchase authorization. Purchases may be made from time to time in the open market or in privately negotiated transactions, based on market conditions, legal requirements and other corporate considerations and subject to Board approval and covenant restrictions.

First Quarter 2017 Earnings Conference Call Details

Group 1's senior management will host a conference call today at 9 a.m. ET to discuss the first quarter financial results and the Company's outlook and strategy.

The conference call will be simulcast live on the Internet at www.group1auto.com. 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:    

7461950

A telephonic replay will be available following the call through May 5, 2017 by dialing:

Domestic:           

1-877-344-7529

International:       

1-412-317-0088

Replay ID:           

10105151

About Group 1 Automotive, Inc.
Group 1 owns and operates 159 automotive dealerships, 210 franchises, and 45 collision centers in the United States, the United Kingdom and Brazil that offer 30 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 March 31, 


2017


2016


% Increase/
(Decrease)

REVENUES:






New vehicle retail sales

$ 1,337,213


$ 1,409,851


(5.2)

Used vehicle retail sales

660,927


688,171


(4.0)

Used vehicle wholesale sales

104,157


101,592


2.5

Parts and service

319,698


308,592


3.6

Finance, insurance and other, net

96,834


100,149


(3.3)

Total revenues

2,518,829


2,608,355


(3.4)







COST OF SALES:






New vehicle retail sales

1,267,986


1,338,124


(5.2)

Used vehicle retail sales

615,922


638,971


(3.6)

Used vehicle wholesale sales

104,057


100,143


3.9

Parts and service

147,342


142,016


3.8

Total cost of sales

2,135,307


2,219,254


(3.8)







GROSS PROFIT

383,522


389,101


(1.4)







SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

289,779


293,664


(1.3)







DEPRECIATION AND AMORTIZATION EXPENSE

13,606


12,464


9.2







ASSET IMPAIRMENTS

-


932


(100.0)







OPERATING INCOME

80,137


82,041


(2.3)







OTHER EXPENSE:






Floorplan interest expense

(11,942)


(11,010)


8.5

Other interest expense, net

(16,999)


(16,929)


0.4

INCOME BEFORE INCOME TAXES

51,196


54,102


(5.4)







PROVISION FOR INCOME TAXES

(17,257)


(19,811)


(12.9)







NET INCOME

$       33,939


$       34,291


(1.0)

Less: Earnings allocated to participating securities

$         1,250


$         1,348


(7.3)

Earnings available to diluted common shares

$       32,689


$       32,943


(0.8)

DILUTED EARNINGS PER SHARE

$           1.58


$           1.47


7.5

Weighted average dilutive common shares outstanding

20,698


22,453


(7.8)

Weighted average participating securities

818


921


(11.2)

Total weighted average shares outstanding

21,516


23,374


(7.9)

 

Group 1 Automotive, Inc.

Consolidated Balance Sheets

(Dollars in thousands)










March 31,
2017


December 31,
2016


% Increase/
(Decrease)

 ASSETS: 


(Unaudited)





 CURRENT ASSETS: 







 Cash and cash equivalents 


$       33,770


$       20,992


60.9

 Contracts in transit and vehicle receivables, net 


213,772


269,508


(20.7)

 Accounts and notes receivable, net 


152,794


173,364


(11.9)

 Inventories, net 


1,729,525


1,651,815


4.7

 Prepaid expenses and other current assets 


23,216


34,908


(33.5)

 Total current assets 


2,153,077


2,150,587


0.1

 PROPERTY AND EQUIPMENT, net 


1,152,395


1,125,883


2.4

 GOODWILL AND INTANGIBLE FRANCHISE RIGHTS 


1,162,351


1,161,639


0.1

 OTHER ASSETS 


21,540


23,794


(9.5)

 Total assets 


$ 4,489,363


$ 4,461,903


0.6








 LIABILITIES AND STOCKHOLDERS' EQUITY: 







 CURRENT LIABILITIES: 







 Floorplan notes payable - credit facility and other 


$ 1,170,383


$ 1,136,654


3.0

 Offset account related to floorplan notes payable - credit facility 


(97,149)


(59,626)


62.9

 Floorplan notes payable - manufacturer affiliates 


392,388


392,661


(0.1)

 Offset account related to floorplan notes payable - manufacturer affiliates 


(26,750)


(25,500)


4.9

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


46,340


72,419


(36.0)

 Current liabilities from interest rate risk management activities 


2,597


3,941


(34.1)

 Accounts payable 


347,746


356,099


(2.3)

 Accrued expenses 


185,720


176,469


5.2

 Total current liabilities 


2,021,275


2,053,117


(1.6)

 5.00% SENIOR NOTES (principal of $550,000 at March 31, 2017 and December 31, 2016, respectively) 


540,858


540,465


0.1

 5.25% SENIOR NOTES (principal of $300,000 at March 31, 2017 and December 31, 2016, respectively) 


295,729


295,591


0.0

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


345,775


333,326


3.7

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


42,356


43,427


(2.5)

 DEFERRED INCOME TAXES 


168,772


161,502


4.5

 LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES 


17,762


20,470


(13.2)

 OTHER LIABILITIES 


87,876


83,805


4.9

 STOCKHOLDERS' EQUITY: 







 Common stock 


256


257


(0.4)

 Additional paid-in capital 


285,455


290,899


(1.9)

 Retained earnings 


1,082,101


1,053,301


2.7

 Accumulated other comprehensive loss 


(140,149)


(146,944)


(4.6)

 Treasury stock 


(258,703)


(267,313)


(3.2)

 Total stockholders' equity 


968,960


930,200


4.2

 Total liabilities and stockholders' equity 


$ 4,489,363


$ 4,461,903


0.6

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)










Three Months Ended




March 31,




2017 (%)


2016 (%)

NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:




Region

Geographic Market





East

Georgia


4.5


3.8


Massachusetts


4.2


5.0


Florida


2.5


2.4


New Hampshire


1.8


1.7


New Jersey


1.6


1.6


Louisiana


1.6


1.4


Mississippi


1.5


1.5


South Carolina


1.3


1.4


Alabama


1.2


0.8


Maryland


0.4


0.4




20.6


20.0







West

Texas


34.8


37.0


California


7.9


9.0


Oklahoma


6.4


7.2


Kansas


1.6


1.8


Louisiana


0.5


0.6




51.2


55.6







International

United Kingdom


23.6


18.0


Brazil


4.6


6.4




100.0


100.0







NEW VEHICLE UNIT SALES BRAND MIX:





Toyota/Scion/Lexus


23.2


23.8

BMW/MINI


14.3


13.1

Ford/Lincoln


12.8


11.5

Volkswagen/Audi/Porsche


12.5


10.6

Honda/Acura


9.1


10.5

Nissan


8.2


7.9

Chevrolet/GMC/Buick/Cadillac


6.7


7.8

Mercedes-Benz/smart/Sprinter


3.9


3.7

Chrysler/Dodge/Jeep/RAM


3.7


4.0

Hyundai/Kia


3.4


4.7

Other


2.2


2.4




100.0


100.0

 

Group 1 Automotive, Inc.

Additional Information - U.S.

(Unaudited)

(Dollars in thousands, except per unit amounts)










Three Months Ended March 31,



2017


2016


% Increase/
(Decrease)

REVENUES:







New vehicle retail sales


$ 1,018,249


$ 1,100,393


(7.5)

Used vehicle retail sales


521,947


558,764


(6.6)

Used vehicle wholesale sales


70,545


68,873


2.4

Total used


592,492


627,637


(5.6)

Parts and service


271,159


263,458


2.9

Finance, insurance and other, net


85,819


90,145


(4.8)

Total


$ 1,967,719


$ 2,081,633


(5.5)








GROSS MARGIN %:







New vehicle retail sales


5.0


4.9



Used vehicle retail sales


7.3


7.8



Used vehicle wholesale sales


(0.5)


1.2



Total used


6.3


7.1



Parts and service


53.8


54.7



Finance, insurance and other, net


100.0


100.0



Total


16.3


16.0










GROSS PROFIT:







New vehicle retail sales


$       51,209


$       54,146


(5.4)

Used vehicle retail sales


37,932


43,455


(12.7)

Used vehicle wholesale sales


(362)


844


(142.9)

Total used


37,570


44,299


(15.2)

Parts and service


145,998


144,120


1.3

Finance, insurance and other, net


85,819


90,145


(4.8)

Total 


$    320,596


$    332,710


(3.6)








UNITS SOLD:







Retail new vehicles sold


27,498


30,801


(10.7)

Retail used vehicles sold


24,929


26,831


(7.1)

Wholesale used vehicles sold


9,981


10,413


(4.1)

Total used


34,910


37,244


(6.3)








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$       37,030


$       35,726


3.7

Used vehicle retail


$       20,937


$       20,825


0.5








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$         1,862


$         1,758


5.9

Used vehicle retail sales


1,522


1,620


(6.0)

Used vehicle wholesale sales


(36)


81


(144.4)

Total used


1,076


1,189


(9.5)

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


$         1,637


$         1,564


4.7








OTHER: 







SG&A expenses


$    236,273


$    245,838


(3.9)

Adjusted SG&A expenses(1)


$    238,106


$    244,086


(2.4)

SG&A as % revenues


12.0


11.8



Adjusted SG&A as % revenues (1)


12.1


11.7



SG&A as % gross profit


73.7


73.9



Adjusted SG&A as % gross profit (1)


74.3


73.4



Operating margin %


3.7


3.6



Adjusted operating margin % (1)


3.6


3.7



Pretax margin %


2.3


2.4



Adjusted pretax margin % (1)


2.2


2.5










INTEREST EXPENSE:







Floorplan interest expense


$     (10,878)


$     (10,049)


8.2

Floorplan assistance


10,284


11,251


(8.6)

Net floorplan (expense) income


$          (594)


$         1,202


(149.4)

Other interest expense, net


$     (16,272)


$     (15,513)


4.9


(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 March 31,



2017


2016


% Increase/
(Decrease)


Constant Currency(1)
% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$ 258,640


$ 246,536


4.9


21.3

Used vehicle retail sales


115,369


110,117


4.8


21.1

Used vehicle wholesale sales


30,509


32,032


(4.8)


10.1

Total used


145,878


142,149


2.6


18.6

Parts and service


36,781


34,549


6.5


23.0

Finance, insurance and other, net


9,028


8,662


4.2


20.5

Total


$ 450,327


$ 431,896


4.3


20.5










GROSS MARGIN %:









New vehicle retail sales


5.6


5.6





Used vehicle retail sales


4.7


4.7





Used vehicle wholesale sales


0.7


1.8





Total used


3.9


4.1





Parts and service


57.7


53.4





Finance, insurance and other, net


100.0


100.0





Total


11.2


10.8














GROSS PROFIT:









New vehicle retail sales


$   14,401


$   13,854


3.9


20.2

Used vehicle retail sales


5,429


5,210


4.2


20.5

Used vehicle wholesale sales


211


572


(63.1)


(57.9)

Total used


5,640


5,782


(2.5)


12.7

Parts and service


21,225


18,448


15.1


33.0

Finance, insurance and other, net


9,028


8,662


4.2


20.5

Total 


$   50,294


$   46,746


7.6


24.3










UNITS SOLD:









Retail new vehicles sold


9,018


7,358


22.6



Retail used vehicles sold


5,611


4,595


22.1



Wholesale used vehicles sold


4,169


3,642


14.5



Total used


9,780


8,237


18.7












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$   28,680


$   33,506


(14.4)


(1.1)

Used vehicle retail


$   20,561


$   23,965


(14.2)


(0.8)










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$      1,597


$      1,883


(15.2)


(2.0)

Used vehicle retail sales


968


1,134


(14.6)


(1.3)

Used vehicle wholesale sales


51


157


(67.5)


(63.2)

Total used


577


702


(17.8)


(5.1)

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


$         617


$         725


(14.9)


(1.6)










OTHER: 









SG&A expenses


$   41,624


$   37,436


11.2


28.5

Adjusted SG&A expenses(1)


$   41,624


$   36,875


12.9


30.4

SG&A as % revenues


9.2


8.7





Adjusted SG&A as % revenues (1)


9.2


8.5





SG&A as % gross profit


82.8


80.1





Adjusted SG&A as % gross profit (1)


82.8


78.9





Operating margin %


1.6


1.8





Adjusted operating margin % (1)


1.6


1.9





Pretax margin %


1.2


1.3





Adjusted pretax margin % (1)


1.2


1.4














INTEREST EXPENSE:









Floorplan interest expense


$    (1,034)


$       (920)


12.4


29.7

Floorplan assistance


229


263


(12.9)


0.5

Net floorplan expense


$       (805)


$       (657)


22.5


41.5

Other interest expense, net


$       (581)


$    (1,282)


(54.7)


(47.9)


(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 March 31,



2017


2016


% Increase/
(Decrease)


Constant Currency (1)
% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$   60,324


$ 62,922


(4.1)


(22.5)

Used vehicle retail sales


23,611


19,290


22.4


(1.3)

Used vehicle wholesale sales


3,103


687


351.7


263.1

Total used


26,714


19,977


33.7


7.8

Parts and service


11,758


10,585


11.1


(10.3)

Finance, insurance and other, net


1,987


1,342


48.1


19.1

Total


$ 100,783


$ 94,826


6.3


(14.2)










GROSS MARGIN %:









New vehicle retail sales


6.0


5.9





Used vehicle retail sales


7.0


2.8





Used vehicle wholesale sales


8.1


4.8





Total used


7.1


2.8





Parts and service


43.7


37.9





Finance, insurance and other, net


100.0


100.0





Total


12.5


10.2














GROSS PROFIT:









New vehicle retail sales


$      3,617


$   3,727


(3.0)


(21.9)

Used vehicle retail sales


1,644


535


207.3


147.2

Used vehicle wholesale sales


251


33


660.6


514.3

Total used


1,895


568


233.6


168.3

Parts and service


5,133


4,008


28.1


3.3

Finance, insurance and other, net


1,987


1,342


48.1


19.1

Total 


$   12,632


$   9,645


31.0


5.5










UNITS SOLD:









Retail new vehicles sold


1,774


2,622


(32.3)



Retail used vehicles sold


1,026


1,365


(24.8)



Wholesale used vehicles sold


379


311


21.9



Total used


1,405


1,676


(16.2)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$   34,005


$ 23,998


41.7


14.5

Used vehicle retail


$   23,013


$ 14,132


62.8


31.3










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$      2,039


$   1,421


43.5


15.5

Used vehicle retail sales


1,602


392


308.7


228.9

Used vehicle wholesale sales


662


106


524.5


404.1

Total used


1,349


339


297.9


220.0

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


$         710


$       337


110.7


69.7










OTHER: 









SG&A expenses


$   11,882


$ 10,390


14.4


(7.9)

Adjusted SG&A expenses(1)


$   11,882


$ 10,019


18.6


(4.5)

SG&A as % revenues


11.8


11.0





Adjusted SG&A as % revenues (1)


11.8


10.6





SG&A as % gross profit


94.1


107.7





Adjusted SG&A as % gross profit (1)


94.1


103.9





Operating margin %


0.4


(1.5)





Adjusted operating margin % (1)


0.4


(0.7)





Pretax margin %


0.2


(1.7)





Adjusted pretax margin % (1)


0.2


(0.9)














INTEREST EXPENSE:









Floorplan interest expense


$         (30)


$       (41)


(26.8)


(42.6)

Floorplan assistance




-


-

Net floorplan expense


$         (30)


$       (41)


(26.8)


(42.6)

Other interest expense, net


$       (146)


$     (134)


9.0


(13.6)


(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 - Consolidated

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended March 31,



2017


2016


% Increase/
(Decrease)


Constant Currency % (1)
Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$ 1,337,213


$ 1,409,851


(5.2)


(3.1)

Used vehicle retail sales


660,927


688,171


(4.0)


(2.0)

Used vehicle wholesale sales


104,157


101,592


2.5


6.6

Total used


765,084


789,763


(3.1)


(0.9)

Parts and service


319,698


308,592


3.6


4.7

Finance, insurance and other, net


96,834


100,149


(3.3)


(2.3)

Total


$ 2,518,829


$ 2,608,355


(3.4)


(1.5)










GROSS MARGIN %:









New vehicle retail sales


5.2


5.1





Used vehicle retail sales


6.8


7.1





Used vehicle wholesale sales


0.1


1.4





Total used


5.9


6.4





Parts and service


53.9


54.0





Finance, insurance and other, net


100.0


100.0





Total


15.2


14.9














GROSS PROFIT:









New vehicle retail sales


$       69,227


$       71,727


(3.5)


(1.3)

Used vehicle retail sales


45,005


49,200


(8.5)


(7.5)

Used vehicle wholesale sales


100


1,449


(93.1)


(94.6)

Total used


45,105


50,649


(10.9)


(9.9)

Parts and service


172,356


166,576


3.5


4.9

Finance, insurance and other, net


96,834


100,149


(3.3)


(2.3)

Total 


$    383,522


$    389,101


(1.4)


(0.1)










UNITS SOLD:









Retail new vehicles sold


38,290


40,781


(6.1)



Retail used vehicles sold


31,566


32,791


(3.7)



Wholesale used vehicles sold


14,529


14,366


1.1



Total used


46,095


47,157


(2.3)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$       34,923


$       34,571


1.0


3.2

Used vehicle retail


$       20,938


$       20,987


(0.2)


1.8










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$         1,808


$         1,759


2.8


5.1

Used vehicle retail sales


1,426


1,500


(4.9)


(3.9)

Used vehicle wholesale sales


7


101


(93.1)


(94.6)

Total used


979


1,074


(8.8)


(7.9)

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


$         1,386


$         1,361


1.8


2.9










OTHER: 









SG&A expenses


$    289,779


$    293,664


(1.3)


0.1

Adjusted SG&A expenses(1)


$    291,612


$    290,980


0.2


1.6

SG&A as % revenues


11.5


11.3





Adjusted SG&A as % revenues (1)


11.6


11.2





SG&A as % gross profit


75.6


75.5





Adjusted SG&A as % gross profit (1)


76.0


74.8





Operating margin %


3.2


3.1





Adjusted operating margin % (1)


3.1


3.3





Pretax margin %


2.0


2.1





Adjusted pretax margin % (1)


2.0


2.2














INTEREST EXPENSE:









Floorplan interest expense


$     (11,942)


$     (11,010)


8.5


9.9

Floorplan assistance


10,513


11,514


(8.7)


(8.7)

Net floorplan (expense) income


$       (1,429)


$            504


(383.5)


(413.7)

Other interest expense, net


$     (16,999)


$     (16,929)


0.4


0.7


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

 








Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)










Three Months Ended March 31,



2017


2016


% Increase/
(Decrease)

REVENUES:







New vehicle retail sales


$ 1,018,248


$ 1,081,354


(5.8)

Used vehicle retail sales


521,945


549,854


(5.1)

Used vehicle wholesale sales


70,545


66,761


5.7

Total used


592,490


616,615


(3.9)

Parts and service


271,160


260,134


4.2

Finance, insurance and other, net


85,390


88,632


(3.7)

Total 


$ 1,967,288


$ 2,046,735


(3.9)








GROSS MARGIN %:







New vehicle retail sales


5.0


4.9



Used vehicle retail sales


7.3


7.7



Used vehicle wholesale sales


(0.5)


1.9



Total used


6.3


7.1



Parts and service


53.8


54.6



Finance, insurance and other, net


100.0


100.0



Total


16.3


16.0










GROSS PROFIT:







New vehicle retail sales


$       51,206


$       53,237


(3.8)

Used vehicle retail sales


37,934


42,352


(10.4)

Used vehicle wholesale sales


(343)


1,242


(127.6)

Total used


37,591


43,594


(13.8)

Parts and service


146,000


142,062


2.8

Finance, insurance and other, net


85,390


88,632


(3.7)

Total 


$    320,187


$    327,525


(2.2)








UNITS SOLD:







Retail new vehicles sold


27,498


30,062


(8.5)

Retail used vehicles sold


24,929


26,357


(5.4)

Wholesale used vehicles sold


9,981


10,113


(1.3)

Total used


34,910


36,470


(4.3)








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$       37,030


$       35,971


2.9

Used vehicle retail


$       20,937


$       20,862


0.4








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$         1,862


$         1,771


5.1

Used vehicle retail sales


1,522


1,607


(5.3)

Used vehicle wholesale sales


(34)


123


(127.6)

Total used


1,077


1,195


(9.9)

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


$         1,629


$         1,571


3.7








OTHER: 







SG&A expenses


$    235,953


$    241,027


(2.1)

Adjusted SG&A expenses(2)


$    237,786


$    238,208


(0.2)

SG&A as % revenues


12.0


11.8



Adjusted SG&A as % revenues (2)


12.1


11.6



SG&A as % gross profit


73.7


73.6



Adjusted SG&A as % gross profit (2)


74.3


72.7



Operating margin %


3.7


3.7



Adjusted operating margin % (2)


3.6


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 March 31,



2017


2016


% Increase/
(Decrease)


Constant Currency (2)
% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$ 222,305


$ 232,238


(4.3)


10.7

Used vehicle retail sales


94,051


100,674


(6.6)


8.1

Used vehicle wholesale sales


24,396


28,800


(15.3)


(2.0)

Total used


118,447


129,474


(8.5)


5.8

Parts and service


28,219


30,107


(6.3)


8.4

Finance, insurance and other, net


7,618


8,191


(7.0)


7.5

Total 


$ 376,589


$ 400,010


(5.9)


8.9










GROSS MARGIN %:









New vehicle retail sales


5.7


5.8





Used vehicle retail sales


5.0


5.2





Used vehicle wholesale sales


2.0


2.1





Total used


4.4


4.5





Parts and service


56.9


53.0





Finance, insurance and other, net


100.0


100.0





Total


11.1


10.8














GROSS PROFIT:









New vehicle retail sales


$   12,698


$   13,444


(5.5)


9.2

Used vehicle retail sales


4,743


5,198


(8.8)


5.5

Used vehicle wholesale sales


499


597


(16.4)


(4.3)

Total used


5,242


5,795


(9.5)


4.5

Parts and service


16,059


15,958


0.6


16.4

Finance, insurance and other, net


7,618


8,191


(7.0)


7.5

Total 


$   41,617


$   43,388


(4.1)


10.9










UNITS SOLD:









Retail new vehicles sold


7,650


6,884


11.1



Retail used vehicles sold


4,592


4,215


8.9



Wholesale used vehicles sold


3,361


3,361


-



Total used


7,953


7,576


5.0












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$   29,059


$   33,736


(13.9)


(0.4)

Used vehicle retail


$   20,481


$   23,885


(14.2)


(0.8)










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$      1,660


$      1,953


(15.0)


(1.8)

Used vehicle retail sales


1,033


1,233


(16.2)


(3.1)

Used vehicle wholesale sales


148


178


(16.9)


(4.3)

Total used


659


765


(13.9)


(0.4)

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


$         622


$         738


(15.7)


(2.5)










OTHER: 









SG&A expenses


$   31,186


$   32,015


(2.6)


12.6

Adjusted SG&A expenses(2)


$   31,186


$   31,454


(0.9)


14.6

SG&A as % revenues


8.3


8.0





Adjusted SG&A as % revenues (2)


8.3


7.9





SG&A as % gross profit


74.9


73.8





Adjusted SG&A as % gross profit (2)


74.9


72.5





Operating margin %


2.4


2.5





Adjusted operating margin % (2)


2.4


2.6






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

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

 










Group 1 Automotive, Inc.

Additional Information - Same Store Brazil (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended March 31,



2017


2016


% Increase/
(Decrease)


Constant Currency (2) 
% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$ 53,912


$ 57,210


(5.8)


(23.9)

Used vehicle retail sales


20,406


16,400


24.4


0.3

Used vehicle wholesale sales


3,010


442


581.0


450.3

Total used


23,416


16,842


39.0


12.1

Parts and service


10,244


8,133


26.0


1.8

Finance, insurance and other, net


1,690


1,071


57.8


26.7

Total 


$ 89,262


$ 83,256


7.2


(13.4)










GROSS MARGIN %:









New vehicle retail sales


6.1


5.9





Used vehicle retail sales


7.4


2.9





Used vehicle wholesale sales


7.9


7.7





Total used


7.5


3.0





Parts and service


45.8


39.6





Finance, insurance and other, net


100.0


100.0





Total


12.8


9.8














GROSS PROFIT:









New vehicle retail sales


$   3,289


$   3,350


(1.8)


(20.9)

Used vehicle retail sales


1,515


470


222.3


158.2

Used vehicle wholesale sales


238


34


600.0


457.1

Total used


1,753


504


247.8


178.7

Parts and service


4,689


3,220


45.6


17.6

Finance, insurance and other, net


1,690


1,071


57.8


26.7

Total 


$ 11,421


$   8,145


40.2


13.0










UNITS SOLD:









Retail new vehicles sold


1,579


2,207


(28.5)



Retail used vehicles sold


928


1,048


(11.5)



Wholesale used vehicles sold


247


204


21.1



Total used


1,175


1,252


(6.2)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$ 34,143


$ 25,922


31.7


6.4

Used vehicle retail


$ 21,989


$ 15,649


40.5


13.2










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$   2,083


$   1,518


37.2


10.6

Used vehicle retail sales


1,633


448


264.5


191.5

Used vehicle wholesale sales


964


167


477.2


360.1

Total used


1,492


403


270.2


196.9

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


$       674


$       329


104.9


64.5










OTHER: 









SG&A expenses


$ 10,252


$   7,878


30.1


4.9

SG&A as % revenues


11.5


9.5





SG&A as % gross profit


89.8


96.7





Operating margin %


0.9


0.0






(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 Consolidated (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended March 31,



2017


2016


% Increase/
(Decrease)


Constant Currency (2))
% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$ 1,294,465


$ 1,370,802


(5.6)


(3.8)

Used vehicle retail sales


636,402


666,928


(4.6)


(3.0)

Used vehicle wholesale sales


97,951


96,003


2.0


5.4

Total used


734,353


762,931


(3.7)


(1.9)

Parts and service


309,623


298,374


3.8


4.6

Finance, insurance and other, net


94,698


97,894


(3.3)


(2.4)

Total 


$ 2,433,139


$ 2,530,001


(3.8)


(2.2)










GROSS MARGIN %:









New vehicle retail sales


5.2


5.1





Used vehicle retail sales


6.9


7.2





Used vehicle wholesale sales


0.4


2.0





Total used


6.1


6.5





Parts and service


53.9


54.0





Finance, insurance and other, net


100.0


100.0





Total


15.3


15.0














GROSS PROFIT:









New vehicle retail sales


$       67,193


$       70,031


(4.1)


(2.1)

Used vehicle retail sales


44,192


48,020


(8.0)


(7.1)

Used vehicle wholesale sales


394


1,873


(79.0)


(77.5)

Total used


44,586


49,893


(10.6)


(9.7)

Parts and service


166,748


161,240


3.4


4.4

Finance, insurance and other, net


94,698


97,894


(3.3)


(2.4)

Total 


$    373,225


$    379,058


(1.5)


(0.4)










UNITS SOLD:









Retail new vehicles sold


36,727


39,153


(6.2)



Retail used vehicles sold


30,449


31,620


(3.7)



Wholesale used vehicles sold


13,589


13,678


(0.7)



Total used


44,038


45,298


(2.8)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$       35,246


$       35,011


0.7


2.6

Used vehicle retail


$       20,901


$       21,092


(0.9)


0.8










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$         1,830


$         1,789


2.3


4.3

Used vehicle retail sales


1,451


1,519


(4.5)


(3.5)

Used vehicle wholesale sales


29


137


(78.8)


(77.4)

Total used


1,012


1,101


(8.1)


(7.1)

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


$         1,410


$         1,383


2.0


2.8










OTHER: 









SG&A expenses


$    277,391


$    280,920


(1.3)


(0.2)

Adjusted SG&A expenses(2)


$    279,224


$    277,540


0.6


1.6

SG&A as % revenues


11.4


11.1





Adjusted SG&A as % revenues (2)


11.5


11.0





SG&A as % gross profit


74.3


74.1





Adjusted SG&A as % gross profit (2)


74.8


73.2





Operating margin %


3.4


3.4





Adjusted operating margin % (2)


3.3


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 March 31,



2017


2016


% Increase/
(Decrease)

SG&A RECONCILIATION:







As reported

$ 236,273


$ 245,838


(3.9)


  Pre-tax adjustments:







    Catastrophic events 

-


(2,655)




    Gain on real estate and dealership transactions 

-


933




    Acquisition costs 

-


(30)




    Legal settlements (4)

1,833


-




Adjusted SG&A (1)

$ 238,106


$ 244,086


(2.4)








SG&A AS % REVENUES:







Unadjusted

12.0


11.8




Adjusted (1)

12.1


11.7



SG&A AS % GROSS PROFIT:







Unadjusted

73.7


73.9




Adjusted (1)

74.3


73.4



OPERATING MARGIN %







Unadjusted

3.7


3.6




Adjusted (1), (2)

3.6


3.7



PRETAX MARGIN %:







Unadjusted

2.3


2.4




Adjusted (1), (2)

2.2


2.5










SAME STORE SG&A RECONCILIATION:














As reported

$ 235,953


$ 241,027


(2.1)


  Pre-tax adjustments:







    Catastrophic events 

-


(2,655)




    Gain on real estate and dealership transactions 

-


(134)




    Acquisition costs 

-


(30)




    Legal settlements (4)

1,833


-




Adjusted Same Store SG&A (1)

$ 237,786


$ 238,208


(0.2)








SAME STORE SG&A AS % REVENUES:







Unadjusted

12.0


11.8




Adjusted (1)

12.1


11.6



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

73.7


73.6




Adjusted (1)

74.3


72.7



SAME STORE OPERATING MARGIN %







Unadjusted

3.7


3.7




Adjusted (1), (3)

3.6


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 $510 for three months March 31, 2016.

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

(4) For the three months ended March 31, 2017, the Company recognized a net pre-tax gain related to a settlement with an OEM of $1.8 million.

 

Group 1 Automotive, Inc.

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

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended March 31,



2017


2016


% Increase/
(Decrease)

SG&A RECONCILIATION:







As reported

$ 41,624


$ 37,436


11.2


  Pre-tax adjustments:







    Acquisition costs 

-


(561)




Adjusted SG&A (1)

$ 41,624


$ 36,875


12.9








SG&A AS % REVENUES:







Unadjusted

9.2


8.7




Adjusted (1)

9.2


8.5



SG&A AS % GROSS PROFIT:







Unadjusted

82.8


80.1




Adjusted (1)

82.8


78.9



OPERATING MARGIN %







Unadjusted

1.6


1.8




Adjusted (1), (2)

1.6


1.9



PRETAX MARGIN %:







Unadjusted

1.2


1.3




Adjusted (1), (2)

1.2


1.4










SAME STORE SG&A RECONCILIATION:














As reported

$ 31,186


$ 32,015


(2.6)


  Pre-tax adjustments:







    Acquisition costs 

-


(561)




Adjusted Same Store SG&A (1)

$ 31,186


$ 31,454


(0.9)








SAME STORE SG&A AS % REVENUES:







Unadjusted

8.3


8.0




Adjusted (1)

8.3


7.9



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

74.9


73.8




Adjusted (1)

74.9


72.5



SAME STORE OPERATING MARGIN %







Unadjusted

2.4


2.5




Adjusted (1), (3)

2.4


2.6




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

(2) Excludes the impact of SG&A reconciling items above.

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

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Brazil

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended March 31,



2017


2016


% Increase/ (Decrease)

SG&A RECONCILIATION:







As reported

$               11,882


$               10,390


14.4


  Pre-tax adjustments:







 Loss on real estate and dealership transactions 

-


(371)




Adjusted SG&A (1)

$               11,882


$               10,019


18.6








SG&A AS % REVENUES:







Unadjusted

11.8


11.0




Adjusted (1)

11.8


10.6



SG&A AS % GROSS PROFIT:







Unadjusted

94.1


107.7




Adjusted (1)

94.1


103.9



OPERATING MARGIN %







Unadjusted

0.4


(1.5)




Adjusted (1), (2)

0.4


(0.7)



PRETAX MARGIN %:







Unadjusted

0.2


(1.7)




Adjusted (1), (2)

0.2


(0.9)










(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 $423 for the three months ended March 31, 2016.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - CONSOLIDATED

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended March 31,



2017


2016


% Increase/ (Decrease)








NET INCOME RECONCILIATION:







As reported

$   33,939


$   34,291


(1.0)


  Pre-tax adjustments:







 Catastrophic events 







 Pre-tax 

-


2,655




 Tax impact 

-


(996)




 Gain on real estate and dealership transactions 







 Pre-tax 

-


(137)




 Tax impact 

-


349




 Acquisition costs including related tax impact 







 Pre-tax 

-


589




 Tax impact 

-


(11)




  Legal settlements (4)







 Pre-tax 

(1,833)


-




 Tax impact 

696


-




 Non-cash asset impairment 







 Pre-tax 

-


510




 Tax impact 

-


(195)




Adjusted net income (1)

$   32,802


$   37,055


(11.5)








ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED







COMMON SHARES RECONCILIATION:







Adjusted net income (1)

$   32,802


$   37,055


(11.5)


Less: Adjusted earnings allocated to participating securities

1,206


1,457


(17.2)


Adjusted net income available to diluted common shares (1)

$   31,596


$   35,598


(11.2)








 DILUTED (LOSS) INCOME PER COMMON SHARE RECONCILIATION: 






As reported

$       1.58


$       1.47


7.5


  Pre-tax adjustments:







 Catastrophic events  

-


0.07




 Gain on real estate and dealership transactions 

-


0.01




 Acquisition costs including related tax impact  

-


0.03




  Legal settlements (4)

(0.05)


-




 Non-cash asset impairment 

-


0.01




Adjusted diluted income per share (1)

$       1.53


$       1.59


(3.8)








SG&A RECONCILIATION:







As reported

$ 289,779


$ 293,664


(1.3)


  Pre-tax adjustments:







 Catastrophic events  

-


(2,655)




 Gain on real estate and dealership transactions 

-


562




 Acquisition costs 

-


(591)




  Legal settlements (4)

1,833


-




Adjusted SG&A (1)

$ 291,612


$ 290,980


0.2








SG&A AS % REVENUES:







Unadjusted

11.5


11.3




Adjusted (1)

11.6


11.2



SG&A AS % GROSS PROFIT:







Unadjusted

75.6


75.5




Adjusted (1)

76.0


74.8



OPERATING MARGIN %







Unadjusted

3.2


3.1




Adjusted (1), (2)

3.1


3.3



PRETAX MARGIN %:







Unadjusted

2.0


2.1




Adjusted (1), (2)

2.0


2.2










SAME STORE SG&A RECONCILIATION:







As reported

$ 277,391


$ 280,920


(1.3)


  Pre-tax adjustments:







 Catastrophic events  

-


(2,655)




 Loss on real estate and dealership transactions 

-


(134)




 Acquisition costs 

-


(591)




  Legal settlements (4)

1,833


-




Adjusted Same Store SG&A (1)

$ 279,224


$ 277,540


0.6








SAME STORE SG&A AS % REVENUES:







Unadjusted

11.4


11.1




Adjusted (1)

11.5


11.0



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

74.3


74.1




Adjusted (1)

74.8


73.2



SAME STORE OPERATING MARGIN %







Unadjusted

3.4


3.4




Adjusted (1), (3)

3.3


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 $932 for the three months ended March 31, 2016.

(3)

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

(4)

For the three months ended March 31, 2017, the Company recognized a net pre-tax gain related to a settlement with an OEM of $1.8 million.

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/group-1-automotive-reports-first-quarter-2017-financial-results-300447808.html

SOURCE Group 1 Automotive, Inc.

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