Market Overview

Group 1 Automotive Reports Third Quarter 2017 Financial Results

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Strong Replacement Demand in Texas & Improved Profitability in the U.K. and Brazil Delivers Record Operating Results

HOUSTON, Oct. 26, 2017 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), ("Group 1" or the "Company"), an international, Fortune 500 automotive retailer, today reported 2017 third quarter net income of $29.9 million, diluted earnings per common share of $1.43, adjusted net income (a non-GAAP measure) of $46.6 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $2.23.

Third quarter 2017 adjusted net income and diluted earnings per share exclude approximately $16.8 million of net, after-tax adjustments, or $0.80 per share, for non-core items. These adjustments primarily consist of costs directly associated with Hurricane Harvey of approximately $9.0 million after-tax, or $0.44 per share; and, franchise right impairments of $5.9 million after-tax, or $0.28 per share. Reconciliations of non-GAAP financial measures are included in the attached financial tables.

"While the Company's third quarter results were negatively affected by both the non-recurring costs from Hurricane Harvey, as well as business disruption for more than a week across our largest revenue-generating market, strong demand for replacement vehicles in September provided significant financial recovery," said Earl J. Hesterberg, Group 1's president and chief executive officer. "We expect this recovery to continue for a number of months, as the region continues to rebuild from Hurricane Harvey's widespread impact. Our overseas businesses were also positive factors in our third quarter results. Although the U.K. new vehicle market declined roughly nine percent in the third quarter, we significantly outperformed the industry with our Same Store new vehicle unit sales rising 2.9 percent. Our used vehicle and F&I businesses were up almost 10 percent driving a total Same Store revenue increase of nine percent on a local currency basis. In Brazil, our operations delivered another quarter of profitability, with gross profit up 19.4 percent on a Same Store constant currency basis, reflecting continued double-digit growth in used, aftersales, and F&I. Our combined performance in all three markets delivered record revenues, gross profit, and adjusted earnings for the quarter."

Consolidated Results for Third 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 increased 6.7 percent (increased 6.6 percent) to a record $3.0 billion; total gross profit increased 6.1 percent (increased 6.0 percent) to a record $431.4 million.
  • New vehicle revenues increased 7.7 percent (increased 7.5 percent) on a 6.0 percent increase in unit sales. New vehicle gross profit increased 9.8 percent (increased 9.6 percent) to a record $88.3 million. U.S. new vehicle margins were up 6.1 percent, or $108 per unit, to $1,891.
  • Retail used vehicle revenues increased 5.8 percent (increased 5.7 percent) on a 4.1 percent increase in unit sales. Retail used vehicle gross profit increased 2.5 percent (increased 2.5 percent) to $47.1 million as the unit sales increase was partially offset by a slight margin decrease of 1.4 percent (decreased 1.5 percent), or $20 per unit, to $1,372.
  • Parts and service gross profit increased 6.8 percent (increased 6.7 percent) on revenue growth of 7.4 percent (increased 7.3 percent). Same Store parts and service gross profit increased 4.5 percent (increased 4.4 percent) on revenue growth of 5.1 percent (increased 5.0 percent). U.S. Same Store parts and service revenue increased 4.7 percent.
  • Finance and Insurance (F&I) gross profit per retail unit (PRU) decreased 2.9 percent (decreased 3.0 percent) to $1,343 per retail unit. Adjusted F&I gross profit PRU (a non-GAAP measure) increased 2.8 percent (increased 2.8 percent) to $1,422, reflecting increases in all three regions.
  • Selling, General and Administrative (SG&A) expenses as a percent of gross profit increased 260 basis points to 76.1 percent. Adjusted SG&A expenses as a percent of gross profit (a non-GAAP measure) decreased 80 basis points to 72.8 percent.

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

  • United States:
    The Company's U.S. operations accounted for 76.4 percent of total revenues and 82.0 percent of total gross profit. On a Same Store basis, U.S. revenues were $2.3 billion, an increase of 1.5 percent. Adjusted U.S. revenue (a non-GAAP measure) increased 1.8 percent, reflecting 3.6 percent growth in new vehicles and a 4.7 percent increase in aftersales revenue. The aftersales growth came in spite of losing more than a week of operations in the key markets of Houston/Beaumont, Miami, and portions of the Gulf Coast. Total U.S. Same Store gross profit grew 2.1 percent. Adjusted total U.S. Same Store gross profit (a non-GAAP measure) increased 4.0 percent.
  • United Kingdom:
    The Company's U.K. operations accounted for 19.6 percent of total revenues and 14.7 percent of total gross profit. On a Same Store basis, new vehicle unit sales increased 2.9 percent, which outperformed the U.K.'s new vehicle industry decline of 8.9 percent. Total Same Store revenue grew 8.8 percent and total Same Store gross profit grew 8.6 percent, both on a constant currency basis. This gross profit growth was driven by a 22.2 percent increase in total used vehicle gross profit, a 10.6 percent increase in aftersales gross profit, a 9.8 percent increase in F&I gross profit, and a slight increase of 0.5 percent in new vehicle gross profit, all on a constant currency basis.
  • Brazil:
    The Company's Brazilian operations were profitable again this quarter and accounted for 4.0 percent of total revenues and 3.3 percent of total gross profit. Total Same Store revenue grew 14.0 percent (increased 11.2 percent) and total Same Store gross profit increased 22.4 percent (increased 19.4 percent), reflecting strong growth in Same Store total used vehicles gross profit of 27.7 percent (increased 24.5 percent) and a 30.9 percent increase (increased 27.8 percent) in Same Store aftersales gross profit. In addition, Same Store F&I gross profit PRU increased 30.6 percent (increased 27.4 percent). Same Store SG&A as a percentage of gross profit improved 1160 basis points (930 basis points on an adjusted basis) to 89.8 percent.

Corporate Development

As previously announced in July 2017, the Company acquired the Beadles Group Ltd in the U.K., which expanded the dealership footprint in the region to 43 stores, with expected annual revenues of $330 million. Also in July 2017, as previously announced, the Company acquired its first Jaguar and Land Rover dealerships in the U.S., which are located in Albuquerque and Santa Fe, New Mexico, and have projected annualized revenues of $40 million. Additionally, as previously announced in August 2017, the Company acquired Audi Forth Worth in Texas, which has an expected annualized revenue of $55 million.  In October 2017, the Company closed a SEAT brand sales operation in Watford, England, which generated approximately $10 million in trailing-twelve-month revenues.

Year-to-date 2017, the Company has acquired 17 dealerships, which are expected to generate an estimated $490 million in annualized revenues, and the Company has disposed of three dealerships, which generated approximately $35 million in trailing-twelve-month revenues.

Share Repurchase Authorization

During the third quarter 2017, the Company repurchased approximately 20,000 shares at an average price per common share of $53.46 for a total of $1.1 million. Year to date, we have spent $40.1 million to repurchase approximately 650 thousand shares at an average price per common share of $61.75.  These repurchases represent three percent of the total outstanding common shares at the beginning of 2017. As of September 30, 2017, $49.6 million remains available under the Company's current common stock share repurchase authorization, which was reset in May 2017.

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

Third Quarter 2017 Earnings Conference Call Details

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

The conference call will be simulcast live on the Internet at www.group1auto.com. Click on 'Investor Relations' and then 'Events' or through this link: 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:

7378333

A telephonic replay will be available following the call through November 1, 2017 by dialing:

Domestic:

1-877-344-7529

International:

1-412-317-0088

Replay ID:

10113415

About Group 1 Automotive, Inc.
Group 1 owns and operates 173 automotive dealerships, 227 franchises, and 47 collision centers in the United States, the United Kingdom and Brazil that offer 32 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service contracts; provides automotive maintenance and repair services; and sells vehicle parts.

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

FORWARD-LOOKING STATEMENTS
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 September 30, 


2017


2016


% Increase/

 (Decrease)

REVENUES:






New vehicle retail sales

$ 1,710,241


$ 1,587,952


7.7

Used vehicle retail sales

743,038


702,620


5.8

Used vehicle wholesale sales

104,827


104,218


0.6

Parts and service

343,193


319,676


7.4

Finance, insurance and other, net

110,993


108,710


2.1

Total revenues

3,012,292


2,823,176


6.7







COST OF SALES:






New vehicle retail sales

1,621,909


1,507,517


7.6

Used vehicle retail sales

695,915


656,652


6.0

Used vehicle wholesale sales

105,012


106,077


(1.0)

Parts and service

158,036


146,262


8.0

Total cost of sales

2,580,872


2,416,508


6.8







GROSS PROFIT

431,420


406,668


6.1







SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

328,327


299,006


9.8







DEPRECIATION AND AMORTIZATION EXPENSE

15,059


12,891


16.8







ASSET IMPAIRMENTS

9,526


10,855


(12.2)







OPERATING INCOME

78,508


83,916


(6.4)







OTHER EXPENSE:






Floorplan interest expense

(13,491)


(11,135)


21.2

Other interest expense, net

(17,874)


(17,094)


4.6

INCOME BEFORE INCOME TAXES

47,143


55,687


(15.3)







PROVISION FOR INCOME TAXES

(17,262)


(20,321)


(15.1)







NET INCOME 

$      29,881


$      35,366


(15.5)

Less: Earnings allocated to participating securities

$        1,023


$        1,426


(28.3)

Earnings available to diluted common shares

$      28,858


$      33,940


(15.0)

DILUTED EARNINGS PER SHARE

$          1.43


$          1.65


(13.3)

Weighted average dilutive common shares outstanding

20,225


20,578


(1.7)

Weighted average participating securities

724


872


(17.0)

Total weighted average shares outstanding

20,949


21,450


(2.3)








 Nine Months Ended September 30, 


2017


2016


% Increase/
(Decrease)

REVENUES:






New vehicle retail sales

$ 4,496,222


$ 4,538,562


(0.9)

Used vehicle retail sales

2,089,914


2,106,569


(0.8)

Used vehicle wholesale sales

308,361


302,089


2.1

Parts and service

994,522


950,341


4.6

Finance, insurance and other, net

314,297


316,419


(0.7)

Total revenues

8,203,316


8,213,980


(0.1)







COST OF SALES:






New vehicle retail sales

4,263,752


4,305,252


(1.0)

Used vehicle retail sales

1,952,873


1,963,136


(0.5)

Used vehicle wholesale sales

308,713


302,551


2.0

Parts and service

458,144


437,153


4.8

Total cost of sales

6,983,482


7,008,092


(0.4)







GROSS PROFIT

1,219,834


1,205,888


1.2







SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

916,674


891,692


2.8







DEPRECIATION AND AMORTIZATION EXPENSE

42,758


38,067


12.3







ASSET IMPAIRMENTS

9,526


12,812


(25.6)







OPERATING INCOME

250,876


263,317


(4.7)







OTHER EXPENSE:






Floorplan interest expense

(38,659)


(33,737)


14.6

Other interest expense, net

(52,188)


(50,729)


2.9

INCOME BEFORE INCOME TAXES

160,029


178,851


(10.5)







PROVISION FOR INCOME TAXES

(57,076)


(62,614)


(8.8)







NET INCOME

$    102,953


$    116,237


(11.4)

Less: Earnings allocated to participating securities

$        3,659


$        4,651


(21.3)

Earnings available to diluted common shares

$      99,294


$    111,586


(11.0)

DILUTED EARNINGS PER SHARE

$          4.85


$          5.22


(7.1)

Weighted average dilutive common shares outstanding

20,480


21,364


(4.1)

Weighted average participating securities

767


895


(14.3)

Total weighted average shares outstanding

21,247


22,259


(4.5)

 

Group 1 Automotive, Inc.

Consolidated Balance Sheets

(Dollars in thousands)










September

30, 2017


December 31,

2016


% Increase/

 (Decrease)

 ASSETS: 


(Unaudited)





 CURRENT ASSETS: 







 Cash and cash equivalents 


$      66,883


$          20,992


218.6

 Contracts in transit and vehicle receivables, net 


288,200


269,508


6.9

 Accounts and notes receivable, net 


187,672


173,364


8.3

 Inventories, net 


1,651,789


1,651,815


(0.0)

 Prepaid expenses and other current assets 


38,111


34,908


9.2

 Total current assets 


2,232,655


2,150,587


3.8

 PROPERTY AND EQUIPMENT, net 


1,269,397


1,125,883


12.7

 GOODWILL AND INTANGIBLE FRANCHISE RIGHTS 


1,208,344


1,161,639


4.0

 OTHER ASSETS 


20,598


23,794


(13.4)

 Total assets 


$ 4,730,994


$     4,461,903


6.0








 LIABILITIES AND STOCKHOLDERS' EQUITY: 







 CURRENT LIABILITIES: 







 Floorplan notes payable - credit facility and other 


$ 1,077,287


$     1,136,654


(5.2)

 Offset account related to floorplan notes payable - credit facility 


(46,248)


(59,626)


(22.4)

 Floorplan notes payable - manufacturer affiliates 


399,804


392,661


1.8

 Offset account related to floorplan notes payable - manufacturer affiliates 


(22,000)


(25,500)


(13.7)

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


80,996


72,419


11.8

 Current liabilities from interest rate risk management activities 


823


3,941


(79.1)

 Accounts payable 


436,851


356,099


22.7

 Accrued expenses 


208,770


176,469


18.3

 Total current liabilities 


2,136,283


2,053,117


4.1

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


541,658


540,465


0.2

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


296,009


295,591


0.1

 ACQUISITION LINE 


33,508



100.0

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


373,466


333,326


12.0

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


48,048


43,427


10.6

 DEFERRED INCOME TAXES 


181,244


161,502


12.2

 LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES 


16,157


20,470


(21.1)

 OTHER LIABILITIES 


93,474


83,805


11.5

 STOCKHOLDERS' EQUITY: 







 Common stock 


255


257


(0.8)

 Additional paid-in capital 


288,970


290,899


(0.7)

 Retained earnings 


1,141,066


1,053,301


8.3

 Accumulated other comprehensive loss 


(126,415)


(146,944)


(14.0)

 Treasury stock 


(292,729)


(267,313)


9.5

 Total stockholders' equity 


$ 1,011,147


$        930,200


8.7

 Total liabilities and stockholders' equity 


$ 4,730,994


$     4,461,903


6.0

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)














Three Months Ended


Nine Months Ended




September 30,


September 30,




2017 (%)


2016 (%)


2017 (%)


2016 (%)

NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:








Region

Geographic Market









United States

Texas


37.8


36.2


36.5


36.4


California


7.0


9.4


7.6


9.3


Oklahoma


5.7


6.6


6.2


6.9


Massachusetts


4.8


5.0


4.7


4.9


Georgia


4.4


4.6


4.6


4.2


Florida


2.4


2.5


2.5


2.5


New Hampshire


1.9


2.0


2.0


1.9


Louisiana


1.9


2.2


2.0


2.1


New Jersey


1.7


1.7


1.7


1.6


Kansas


1.5


1.6


1.6


1.8


South Carolina


1.3


1.3


1.3


1.4


Mississippi


1.2


1.5


1.3


1.5


Alabama


0.9


1.0


1.0


0.9


Maryland


0.3


0.5


0.4


0.5


New Mexico 


0.1







72.9


76.1


73.4


75.9











International

United Kingdom


22.6


18.6


21.8


18.2


Brazil


4.5


5.3


4.8


5.9




100.0


100.0


100.0


100.0











NEW VEHICLE UNIT SALES BRAND MIX:









Toyota/Scion/Lexus


26.7


25.3


25.3


24.7

Volkswagen/Audi/Porsche


13.9


11.3


13.0


10.9

BMW/MINI


11.5


13.2


12.8


13.3

Ford/Lincoln


10.6


10.8


11.5


11.1

Honda/Acura


9.0


9.9


9.2


10.2

Nissan


7.0


7.0


7.5


7.0

Chevrolet/GMC/Buick/Cadillac


6.1


7.3


6.2


7.6

Hyundai/Kia


4.2


4.3


4.0


4.4

Chrysler/Dodge/Jeep/RAM


3.9


4.1


3.9


4.1

Mercedes-Benz/smart/Sprinter


3.4


4.2


3.8


4.1

Other


3.7


2.6


2.8


2.6




100.0


100.0


100.0


100.0

 

Group 1 Automotive, Inc.

Additional Information - U.S.

(Unaudited)

(Dollars in thousands, except per unit amounts)










Three Months Ended September 30,



2017


2016


% Increase/

 (Decrease)

REVENUES:







New vehicle retail sales


$ 1,296,267


$ 1,254,421


3.3

Used vehicle retail sales


562,031


575,551


(2.3)

Used vehicle wholesale sales


63,363


74,821


(15.3)

Total used


625,394


650,372


(3.8)

Parts and service


283,915


271,635


4.5

Finance, insurance and other, net


96,383


98,295


(1.9)

Total


$ 2,301,959


$ 2,274,723


1.2








GROSS MARGIN %:







New vehicle retail sales


5.1


4.9



Used vehicle retail sales


6.8


6.8



Used vehicle wholesale sales


(0.1)


(2.0)



Total used


6.1


5.8



Parts and service


53.8


54.8



Finance, insurance and other, net


100.0


100.0



Total


15.4


15.2










GROSS PROFIT:







New vehicle retail sales


$      66,622


$      61,886


7.7

Used vehicle retail sales


37,962


39,193


(3.1)

Used vehicle wholesale sales


(54)


(1,514)


96.4

Total used


37,908


37,679


0.6

Parts and service


152,654


148,866


2.5

Finance, insurance and other, net


96,383


98,295


(1.9)

Total 


$    353,567


$    346,726


2.0








UNITS SOLD:







Retail new vehicles sold


35,233


34,700


1.5

Retail used vehicles sold


26,304


27,201


(3.3)

Wholesale used vehicles sold


9,786


11,005


(11.1)

Total used


36,090


38,206


(5.5)








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$      36,791


$      36,150


1.8

Used vehicle retail


$      21,367


$      21,159


1.0








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$        1,891


$        1,783


6.1

Used vehicle retail sales


1,443


1,441


0.1

Used vehicle wholesale sales


(6)


(138)


95.7

Total used


1,050


986


6.5

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


$        1,566


$        1,588


(1.4)








OTHER: 







Adjusted Finance, insurance and other revenue, net(1) (2)


$    102,933


$      98,295


4.7

Adjusted Total revenue (1)


$ 2,308,509


$ 2,274,723


1.5

Adjusted Total gross profit (1) 


$    360,117


$    346,726


3.9

Adjusted Total gross margin(1) 


15.6


15.2



Adjusted Finance, insurance and other, net (per retail unit) (1) 


$        1,673


$        1,588


5.4

SG&A expenses


$    261,787


$    246,501


6.2

Adjusted SG&A expenses (1)


$    252,120


$    247,227


2.0

SG&A as % revenues


11.4


10.8



Adjusted SG&A as % revenues (1)


11.0


10.9



SG&A as % gross profit


74.0


71.1



Adjusted SG&A as % gross profit (1)


70.0


71.3



Operating margin %


3.0


3.4



Adjusted operating margin % (1)


4.1


3.9



Pretax margin %


1.8


2.3



Adjusted pretax margin % (1)


2.9


2.8










INTEREST EXPENSE:







Floorplan interest expense


$    (12,014)


$      (9,979)


20.4

Floorplan assistance


13,295


12,824


3.7

Net floorplan income


$        1,281


$        2,845


(55.0)

Other interest expense, net


$    (16,727)


$    (15,710)


6.5

















Nine Months Ended September 30,



2017


2016


% Increase/

 (Decrease)

REVENUES:







New vehicle retail sales


$ 3,458,287


$ 3,558,127


(2.8)

Used vehicle retail sales


1,620,171


1,709,595


(5.2)

Used vehicle wholesale sales


200,384


205,755


(2.6)

Total used


1,820,555


1,915,350


4.9

Parts and service


837,772


805,618


4.0

Finance, insurance and other, net


276,754


284,644


(2.8)

Total


$ 6,393,368


$ 6,563,739


(2.6)








GROSS MARGIN %:







New vehicle retail sales


5.1


5.0



Used vehicle retail sales


6.9


7.2



Used vehicle wholesale sales


(0.1)


(0.3)



Total used


6.2


6.4



Parts and service


53.8


54.6



Finance, insurance and other, net


100.0


100.0



Total


15.9


15.6










GROSS PROFIT:







New vehicle retail sales


$    174,831


$    177,674


(1.6)

Used vehicle retail sales


112,598


122,832


(8.3)

Used vehicle wholesale sales


(170)


(643)


73.6

Total used


112,428


122,189


(8.0)

Parts and service


450,623


43,956


2.5

Finance, insurance and other, net


276,754


284,644


(2.8)

Total 


$ 1,014,636


$ 1,024,033


(0.9)








UNITS SOLD:







Retail new vehicles sold


93,533


98,692


(5.2)

Retail used vehicles sold


76,435


80,888


(5.5)

Wholesale used vehicles sold


29,468


30,894


(4.6)

Total used


105,903


111,782


(5.3)








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$      36,974


$      36,053


2.6

Used vehicle retail


$      21,197


$      21,135


0.3








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$        1,869


$        1,800


3.8

Used vehicle retail sales


1,473


1,519


(3.0)

Used vehicle wholesale sales


(6)


(21)


71.4

Total used


1,062


1,093


(2.8)

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


$        1,628


$        1,585


2.7








OTHER: 







Adjusted Finance, insurance and other revenue, net(1) (2)


$    283,304


$    284,644


(0.5)

Adjusted Total revenue (1)


$ 6,399,918


$ 6,563,739


(2.6)

Adjusted Total gross profit (1) 


$ 1,021,186


$ 1,024,033


(0.3)

Adjusted Total gross margin(1) 


16.0


15.6



Adjusted Finance, insurance and other, net (per retail unit) (1) 


$        1,667


$        1,585


5.2

SG&A expenses


$    741,904


$    737,730


0.6

Adjusted SG&A expenses (1)


$    733,427


$    733,683


0.0

SG&A as % revenues


11.6


11.2



Adjusted SG&A as % revenues (1)


11.5


11.2



SG&A as % gross profit


73.1


72.0



Adjusted SG&A as % gross profit (1)


71.8


71.6



Operating margin %


3.6


3.7



Adjusted operating margin % (1)


3.9


3.9



Pretax margin %


2.2


2.5



Adjusted pretax margin % (1)


2.6


2.8










INTEREST EXPENSE:







Floorplan interest expense


$    (34,954)


$    (30,428)


14.9

Floorplan assistance


35,031


36,176


(3.2)

Net floorplan income


$             77


$        5,748


98.7

Other interest expense, net


$    (49,571)


$    (46,581)


6.4



(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.

(2)

Finance, insurance and other revenue represents fees earned for the financing of vehicle sales transactions and from the sale of insurance and vehicle service contracts. Such amounts are reported net of estimated amounts to be charged back in the future. As a result, finance, insurance and other revenue and gross
profit are the same.

 

Group 1 Automotive, Inc.

Additional Information - U.K.

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended September 30,



2017


2016


% Increase/

(Decrease)


Constant Currency (1) 

% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$       334,772


$       256,143


30.7


30.3

Used vehicle retail sales


158,076


106,856


47.9


48.3

Used vehicle wholesale sales


38,647


28,586


35.2


35.5

Total used


196,723


135,442


45.2


45.6

Parts and service


46,783


35,682


31.1


31.5

Finance, insurance and other, net


12,448


8,708


42.9


42.8

Total


$       590,726


$       435,975


35.5


35.4










GROSS MARGIN %:









New vehicle retail sales


5.1


5.5





Used vehicle retail sales


4.7


4.9





Used vehicle wholesale sales


(0.9)


(1.4)





Total used


3.6


3.6





Parts and service


57.3


55.7





Finance, insurance and other, net


100.0


100.0





Total


10.8


10.9














GROSS PROFIT:









New vehicle retail sales


$         17,205


$         14,031


22.6


21.9

Used vehicle retail sales


7,471


5,265


41.9


42.3

Used vehicle wholesale sales


(347)


(404)


14.1


11.7

Total used


7,124


4,861


46.6


46.8

Parts and service


26,823


19,892


34.8


35.2

Finance, insurance and other, net


12,448


8,708


42.9


42.8

Total 


$         63,600


$         47,492


33.9


33.8










UNITS SOLD:









Retail new vehicles sold


10,909


8,468


28.8



Retail used vehicles sold


7,011


4,800


46.1



Wholesale used vehicles sold


4,939


3,689


33.9



Total used


11,950


8,489


40.8












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$         30,688


$         30,248


1.5


1.2

Used vehicle retail


$         22,547


$         22,262


1.3


1.5










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$           1,577


$           1,657


(4.8)


(5.4)

Used vehicle retail sales


1,066


1,097


(2.8)


(2.6)

Used vehicle wholesale sales


(70)


(110)


36.4


34.1

Total used


596


573


4.0


4.3

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


$              695


$              656


5.9


5.7










OTHER: 









SG&A expenses


$         53,395


$         39,609


34.8


35.2

SG&A as % revenues


9.0


9.1





SG&A as % gross profit


84.0


83.4





Operating margin %


1.3


1.4





Pretax margin %


0.9


0.9














INTEREST EXPENSE:









Floorplan interest expense


$         (1,336)


$         (1,083)


23.4


23.5

Floorplan assistance


265


154


72.1


72.3

Net floorplan expense


$         (1,071)


$            (929)


15.3


15.4

Other interest expense, net


$         (1,121)


$         (1,299)


(13.7)


(13.6)





















Nine Months Ended September 30,



2017


2016


% Increase/

 (Decrease)


Constant Currency (1) 

% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$       824,827


$       764,707


7.9


17.1

Used vehicle retail sales


401,851


339,800


18.3


28.8

Used vehicle wholesale sales


99,604


93,985


6.0


15.6

Total used


501,455


433,785


15.6


26.0

Parts and service


120,614


110,180


9.5


19.2

Finance, insurance and other, net


31,260


26,991


15.8


25.8

Total 


$    1,478,156


$    1,335,663


10.7


20.3










GROSS MARGIN %:









New vehicle retail sales


5.5


5.7





Used vehicle retail sales


4.9


5.1





Used vehicle wholesale sales


(0.9)


0.1





Total used


3.7


4.0





Parts and service


57.6


55.2





Finance, insurance and other, net


100.0


100.0





Total


11.2


11.1














GROSS PROFIT:









New vehicle retail sales


$         45,350


$         43,347


4.6


13.6

Used vehicle retail sales


19,579


17,329


13.0


23.3

Used vehicle wholesale sales


(851)


54


(1,675.9)


(5,004.1)

Total used


18,728


17,383


7.7


7.6

Parts and service


69,488


60,845


14.2


24.3

Finance, insurance and other, net


31,260


26,991


15.8


25.8

Total 


$       164,826


$       148,566


10.9


20.7










UNITS SOLD:









Retail new vehicles sold


27,821


23,694


17.4



Retail used vehicles sold


18,435


14,401


28.0



Wholesale used vehicles sold


13,245


11,328


16.9



Total used


31,680


25,729


23.1












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$         29,648


$         32,274


(8.1)


(0.3)

Used vehicle retail


$         21,798


$         23,596


(7.6)


0.6










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$           1,630


$           1,829


(10.9)


(3.3)

Used vehicle retail sales


1,062


1,203


(11.7)


(3.7)

Used vehicle wholesale sales


(64)


5


(1,380.0)


(4,294.3)

Total used


591


676


(12.6)


(12.6)

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


$              676


$              709


(4.7)


3.6










OTHER: 









SG&A expenses


$       137,475


$       119,154


15.4


25.5

Adjusted SG&A expenses(1)


$       137,187


$       118,593


15.7


25.9

SG&A as % revenues


9.3


8.9





Adjusted SG&A as % revenues (1)


9.3


8.9





SG&A as % gross profit


83.4


80.2





Adjusted SG&A as % gross profit (1)


83.2


79.8





Operating margin %


1.5


1.8





Adjusted operating margin % (1)


1.5


1.9





Pretax margin %


1.1


1.3





Adjusted pretax margin % (1)


1.1


1.3














INTEREST EXPENSE:









Floorplan interest expense


$         (3,423)


$         (3,137)


9.1


18.5

Floorplan assistance


714


643


11.0


22.1

Net floorplan expense


$         (2,709)


$         (2,494)


8.6


17.6

Other interest expense, net


$         (2,386)


$         (3,966)


(39.8)


(34.7)



(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 - Brazil

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended September 30,



2017


2016


% Increase/
(Decrease)


Constant Currency (1) 

 % Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$   79,202


$   77,388


2.3


(0.2)

Used vehicle retail sales


22,931


20,213


13.4


10.6

Used vehicle wholesale sales


2,817


811


247.3


239.0

Total used


25,748


21,024


22.5


19.4

Parts and service


12,495


12,359


1.1


(1.4)

Finance, insurance and other, net


2,162


1,707


26.7


23.5

Total


$ 119,607


$ 112,478


6.3


3.7










GROSS MARGIN %:









New vehicle retail sales


5.7


5.8





Used vehicle retail sales


7.4


7.5





Used vehicle wholesale sales


7.7


7.3





Total used


7.4


7.5





Parts and service


45.5


37.7





Finance, insurance and other, net


100.0


100.0





Total


11.9


11.1














GROSS PROFIT:









New vehicle retail sales


$     4,505


$     4,518


(0.3)


(2.7)

Used vehicle retail sales


1,690


1,510


11.9


9.2

Used vehicle wholesale sales


216


59


266.1


258.5

Total used


1,906


1,569


21.5


18.6

Parts and service


5,680


4,656


22.0


19.0

Finance, insurance and other, net


2,162


1,707


26.7


23.5

Total 


$   14,253


$   12,450


14.5


11.7










UNITS SOLD:









Retail new vehicles sold


2,179


2,429


(10.3)



Retail used vehicles sold


1,034


1,011


2.3



Wholesale used vehicles sold


242


333


(27.3)



Total used


1,276


1,344


(5.1)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$   36,348


$   31,860


14.1


11.3

Used vehicle retail


$   22,177


$   19,993


10.9


8.2










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$     2,067


$     1,860


11.1


8.5

Used vehicle retail sales


1,634


1,494


9.4


6.8

Used vehicle wholesale sales


893


177


404.5


393.3

Total used


1,494


1,167


28.0


24.9

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


$        673


$        496


35.7


32.2










OTHER: 









SG&A expenses


$   13,145


$   12,896


1.9


(0.6)

Adjusted SG&A expenses(1)


$   13,145


$   12,622


4.1


1.6

SG&A as % revenues


11.0


11.5





Adjusted SG&A as % revenues (1)


11.0


11.2





SG&A as % gross profit


92.2


103.6





Adjusted SG&A as % gross profit (1)


92.2


101.4





Operating margin %


0.6


(0.6)





Adjusted operating margin % (1)


0.6


(0.4)





Pretax margin %


0.5


(0.8)





Adjusted pretax margin % (1)


0.5


(0.5)














INTEREST EXPENSE:









Floorplan interest expense


$      (141)


$        (73)


93.2


90.9

Floorplan assistance




-


-

Net floorplan expense


$      (141)


$        (73)


93.2


90.9

Other interest expense, net


$        (26)


$        (85)


(69.4)


(68.7)





















Nine Months Ended September 30,



2017


2016


% Increase/

(Decrease)


Constant Currency (1)
% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$ 213,108


$ 215,728


(1.2)


(11.0)

Used vehicle retail sales


67,892


57,174


18.7


6.3

Used vehicle wholesale sales


8,373


2,349


256.4


220.7

Total used


76,265


59,523


28.1


14.8

Parts and service


36,136


34,543


4.6


(5.9)

Finance, insurance and other, net


6,283


4,784


31.3


18.3

Total 


$ 331,792


$ 314,578


5.5


(5.1)










GROSS MARGIN %:









New vehicle retail sales


5.8


5.7





Used vehicle retail sales


7.2


5.7





Used vehicle wholesale sales


8.0


5.4





Total used


7.3


5.7





Parts and service


45.0


37.1





Finance, insurance and other, net


100.0


100.0





Total


12.2


10.6














GROSS PROFIT:









New vehicle retail sales


$   12,289


$   12,289


0.0


(10.0)

Used vehicle retail sales


4,864


3,272


48.7


36.8

Used vehicle wholesale sales


669


127


426.8


378.4

Total used


5,533


3,399


62.8


49.6

Parts and service


16,267


12,817


26.9


14.0

Finance, insurance and other, net


6,283


4,784


31.3


18.3

Total 


$   40,372


$   33,289


21.3


9.3










UNITS SOLD:









Retail new vehicles sold


6,133


7,636


(19.7)



Retail used vehicles sold


3,048


3,465


(12.0)



Wholesale used vehicles sold


858


855


0.4



Total used


3,906


4,320


(9.6)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$   34,748


$   28,251


23.0


10.9

Used vehicle retail


$   22,274


$   16,500


35.0


20.8










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$     2,004


$     1,609


24.5


12.0

Used vehicle retail sales


1,596


944


69.1


55.5

Used vehicle wholesale sales


780


149


423.5


376.7

Total used


1,417


787


80.1


65.4

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


$        684


$        431


58.7


43.1










OTHER: 









SG&A expenses


$   37,295


$   34,808


7.1


(3.6)

Adjusted SG&A expenses(1)


$   37,295


$   34,162


9.2


(1.7)

SG&A as % revenues


11.2


11.1





Adjusted SG&A as % revenues (1)


11.2


10.9





SG&A as % gross profit


92.4


104.6





Adjusted SG&A as % gross profit (1)


92.4


102.6





Operating margin %


0.6


(0.9)





Adjusted operating margin % (1)


0.6


(0.5)





Pretax margin %


0.4


(1.0)





Adjusted pretax margin % (1)


0.4


(0.7)














INTEREST EXPENSE:









Floorplan interest expense


$      (282)


$      (172)


64.0


50.0

Floorplan assistance




-


-

Net floorplan expense


$      (282)


$      (172)


64.0


50.0

Other interest expense, net


$      (231)


$      (182)


26.9


8.7











(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 - Consolidated

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended September 30,



2017


2016


% Increase/

 (Decrease)


Constant Currency % (1)

Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$ 1,710,241


$ 1,587,952


7.7


7.5

Used vehicle retail sales


743,038


702,620


5.8


5.7

Used vehicle wholesale sales


104,827


104,218


0.6


0.6

Total used


847,865


806,838


5.1


5.1

Parts and service


343,193


319,676


7.4


7.3

Finance, insurance and other, net


110,993


108,710


2.1


2.0

Total


$ 3,012,292


$ 2,823,176


6.7


6.6










GROSS MARGIN %:









New vehicle retail sales


5.2


5.1





Used vehicle retail sales


6.3


6.5





Used vehicle wholesale sales


(0.2)


(1.8)





Total used


5.5


5.5





Parts and service


54.0


54.2





Finance, insurance and other, net


100.0


100.0





Total


14.3


14.4














GROSS PROFIT:









New vehicle retail sales


$      88,332


$      80,435


9.8


9.6

Used vehicle retail sales


47,123


45,968


2.5


2.5

Used vehicle wholesale sales


(185)


(1,859)


90.0


89.3

Total used


46,938


44,109


6.4


6.3

Parts and service


185,157


173,414


6.8


6.7

Finance, insurance and other, net


110,993


108,710


2.1


2.0

Total 


$    431,420


$    406,668


6.1


6.0










UNITS SOLD:









Retail new vehicles sold


48,321


45,597


6.0



Retail used vehicles sold


34,349


33,012


4.1



Wholesale used vehicles sold


14,967


15,027


(0.4)



Total used


49,316


48,039


2.7












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$      35,393


$      34,826


1.6


1.5

Used vehicle retail


$      21,632


$      21,284


1.6


1.6










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$        1,828


$        1,764


3.6


3.4

Used vehicle retail sales


1,372


1,392


(1.4)


(1.5)

Used vehicle wholesale sales


(12)


(124)


90.3


89.2

Total used


952


918


3.7


3.6

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


$        1,343


$        1,383


(2.9)


(3.0)










OTHER: 









Adjusted Finance, insurance and other revenue, net(1) (2)


$    117,543


$    108,710


8.1


8.1

Adjusted Total revenue (1)


$ 3,018,842


$ 2,823,176


6.9


6.8

Adjusted Total gross profit (1) 


$    437,970


$    406,668


7.7


7.6

Adjusted Total gross margin(1) 


14.5


14.4





Adjusted Finance, insurance and other, net (per retail unit) (1) 


$        1,422


$        1,383


2.8


2.8

SG&A expenses


$    328,327


$    299,006


9.8


9.7

Adjusted SG&A expenses (1)


$    318,660


$    299,458


6.4


6.4

SG&A as % revenues


10.9


10.6





Adjusted SG&A as % revenues (1)


10.6


10.6





SG&A as % gross profit


76.1


73.5





Adjusted SG&A as % gross profit (1)


72.8


73.6





Operating margin %


2.6


3.0





Adjusted operating margin % (1)


3.5


3.3





Pretax margin %


1.6


2.0





Adjusted pretax margin % (1)


2.4


2.3














INTEREST EXPENSE:









Floorplan interest expense


$    (13,491)


$    (11,135)


21.2


21.2

Floorplan assistance


13,561


12,979


4.5


4.5

Net floorplan income


$             70


$        1,844


(96.2)


(96.1)

Other interest expense, net


$    (17,874)


$    (17,094)


4.6


4.6





















Three Months Ended September 30,



2017


2016


% Increase/

(Decrease)


Constant Currency % (1)

Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$ 4,496,222


$ 4,538,562


(0.9)


0.2

Used vehicle retail sales


2,089,914


2,106,569


(0.8)


0.6

Used vehicle wholesale sales


308,361


302,089


2.1


4.8

Total used


2,398,275


2,408,658


(0.4)


1.1

Parts and service


994,522


950,341


4.6


5.4

Finance, insurance and other, net


314,297


316,419


(0.7)


(0.0)

Total


$ 8,203,316


$ 8,213,980


(0.1)


1.0










GROSS MARGIN %:









New vehicle retail sales


5.2


5.1





Used vehicle retail sales


6.6


6.8





Used vehicle wholesale sales


(0.1)


(0.2)





Total used


5.7


5.9





Parts and service


53.9


54.0





Finance, insurance and other, net


100.0


100.0





Total


14.9


14.7














GROSS PROFIT:









New vehicle retail sales


$    232,470


$    233,310


(0.4)


0.8

Used vehicle retail sales


137,041


143,433


(4.5)


(3.5)

Used vehicle wholesale sales


(352)


(462)


23.8


(381.7)

Total used


136,689


142,971


(4.4)


(4.7)

Parts and service


536,378


513,188


4.5


5.4

Finance, insurance and other, net


314,297


316,419


(0.7)


(0.0)

Total 


$ 1,219,834


$ 1,205,888


1.2


2.0










UNITS SOLD:









Retail new vehicles sold


127,487


130,022


(1.9)



Retail used vehicles sold


97,918


98,754


(0.8)



Wholesale used vehicles sold


43,571


43,077


1.1



Total used


141,489


141,831


(0.2)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$      35,268


$      34,906


1.0


2.1

Used vehicle retail


$      21,344


$      21,331


0.1


1.4










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$        1,823


$        1,794


1.6


2.8

Used vehicle retail sales


1,400


1,452


(3.6)


(2.7)

Used vehicle wholesale sales


(8)


(11)


27.3


(376.2)

Total used


966


1,008


(4.2)


(4.5)

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


$        1,394


$        1,383


0.8


1.5










OTHER: 









Adjusted Finance, insurance and other revenue, net(1) (2)


$    320,847


$    316,419


1.4


2.1

Adjusted Total revenue (1)


$ 8,209,866


$ 8,213,980


(0.1)


1.1

Adjusted Total gross profit (1) 


$ 1,226,384


$ 1,205,888


1.7


2.4

Adjusted Total gross margin(1) 


14.9


14.7





Adjusted Finance, insurance and other, net (per retail unit) (1) 


$        1,423


$        1,383


2.9


3.6

SG&A expenses


$    916,674


$    891,692


2.8


3.7

Adjusted SG&A expenses (1)


$    907,909


$    886,439


2.4


3.4

SG&A as % revenues


11.2


10.9





Adjusted SG&A as % revenues (1)


11.1


10.8





SG&A as % gross profit


75.1


73.9





Adjusted SG&A as % gross profit (1)


74.0


73.5





Operating margin %


3.1


3.2





Adjusted operating margin % (1)


3.4


3.4





Pretax margin %


2.0


2.2





Adjusted pretax margin % (1)


2.3


2.4














INTEREST EXPENSE:









Floorplan interest expense


$    (38,659)


$    (33,737)


14.6


15.4

Floorplan assistance


35,745


36,818


(2.9)


(2.7)

Net floorplan income


$      (2,914)


$        3,081


(194.6)


(201.1)

Other interest expense, net


$    (52,188)


$    (50,729)


2.9


3.2











(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.

(2)

Finance, insurance and other revenue represents fees earned for the financing of vehicle sales transactions and from the sale of insurance and vehicle service contracts. Such amounts are reported net of estimated amounts to be charged back in the future. As a result, finance, insurance and other revenue and gross
profit are the same.

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)










Three Months Ended September 30,



2017


2016


% Increase/

 (Decrease)

REVENUES:







New vehicle retail sales


$ 1,283,050


$ 1,238,239


3.6

Used vehicle retail sales


557,657


568,306


(1.9)

Used vehicle wholesale sales


62,552


74,020


(15.5)

Total used


620,209


642,326


(3.4)

Parts and service


281,735


269,072


4.7

Finance, insurance and other, net


95,195


96,685


(1.5)

Total 


$ 2,280,189


$ 2,246,322


1.5








GROSS MARGIN %:







New vehicle retail sales


5.1


4.9



Used vehicle retail sales


6.7


6.8



Used vehicle wholesale sales


(0.2)


(2.0)



Total used


6.0


5.8



Parts and service


53.8


54.7



Finance, insurance and other, net


100.0


100.0



Total


15.3


15.3










GROSS PROFIT:







New vehicle retail sales


$      65,712


$      61,270


7.2

Used vehicle retail sales


37,638


38,909


(3.3)

Used vehicle wholesale sales


(138)


(1,477)


90.7

Total used


37,500


37,432


0.2

Parts and service


151,481


147,215


2.9

Finance, insurance and other, net


95,195


96,685


(1.5)

Total 


$    349,888


$    342,602


2.1








UNITS SOLD:







Retail new vehicles sold


34,917


34,080


2.5

Retail used vehicles sold


26,093


26,800


(2.6)

Wholesale used vehicles sold


9,672


10,832


(10.7)

Total used


35,765


37,632


(5.0)








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$      36,746


$      36,333


1.1

Used vehicle retail


$      21,372


$      21,205


0.8








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$        1,882


$        1,798


4.7

Used vehicle retail sales


1,442


1,452


(0.7)

Used vehicle wholesale sales


(14)


(136)


89.7

Total used


1,049


995


5.4

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


$        1,560


$        1,588


(1.8)








OTHER: 







Adjusted Finance, insurance and other revenue, net(2) (3)


$    101,745


$      96,685


5.2

Adjusted Total revenue (2)


$ 2,286,739


$ 2,246,322


1.8

Adjusted Total gross profit (2) 


$    356,438


$    342,602


4.0

Adjusted Total gross margin (2) 


15.6


15.3



Adjusted Finance, insurance and other, net (per retail unit) (2) 


$        1,668


$        1,588


5.0

SG&A expenses


$    258,862


$    243,151


6.5

Adjusted SG&A expenses (2)


$    249,195


$    242,701


2.7

SG&A as % revenues


11.4


10.8



Adjusted SG&A as % revenues (2)


10.9


10.8



SG&A as % gross profit


74.0


71.0



Adjusted SG&A as % gross profit (2)


69.9


70.8



Operating margin %


3.0


3.5



Adjusted operating margin % (2)


4.2


4.0



















Nine Months Ended September 30,



2017


2016


% Increase/
(Decrease)

REVENUES:







New vehicle retail sales


$ 3,441,300


$ 3,505,583


(1.8)

Used vehicle retail sales


1,614,613


1,684,837


(4.2)

Used vehicle wholesale sales


199,320


202,003


(1.3)

Total used


1,813,933


1,886,840


(3.9)

Parts and service


835,188


796,455


4.9

Finance, insurance and other, net


274,464


279,919


(1.9)

Total 


$ 6,364,885


$ 6,468,797


(1.6)








GROSS MARGIN %:







New vehicle retail sales


5.1


5.0



Used vehicle retail sales


7.0


7.2



Used vehicle wholesale sales


(0.1)


(0.1)



Total used


6.2


6.4



Parts and service


53.8


54.5



Finance, insurance and other, net


100.0


100.0



Total


15.9


15.6










GROSS PROFIT:







New vehicle retail sales


$    173,908


$    175,554


(0.9)

Used vehicle retail sales


112,216


121,040


(7.3)

Used vehicle wholesale sales


(232)


(213)


(8.9)

Total used


111,984


120,827


(7.3)

Parts and service


449,262


433,879


3.5

Finance, insurance and other, net


274,464


279,919


(1.9)

Total 


$ 1,009,618


$ 1,010,179


(0.1)








UNITS SOLD:







Retail new vehicles sold


93,090


96,676


(3.7)

Retail used vehicles sold


76,156


79,587


(4.3)

Wholesale used vehicles sold


29,315


30,271


(3.2)

Total used


105,471


109,858


(4.0)








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$      36,967


$      36,261


1.9

Used vehicle retail


$      21,201


$      21,170


0.1








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$        1,868


$        1,816


2.9

Used vehicle retail sales


1,474


1,521


(3.1)

Used vehicle wholesale sales


(8)


(7)


(14.3)

Total used


1,062


1,100


(3.5)

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


$        1,622


$        1,588


2.1








OTHER: 







Adjusted Finance, insurance and other revenue, net(2) (3)


$    281,014


$    279,919


0.4

Adjusted Total revenue (2)


$ 6,371,435


$ 6,468,797


(1.5)

Adjusted Total gross profit (2) 


$ 1,016,168


$ 1,010,179


0.6

Adjusted Total gross margin (2) 


15.9


15.6



Adjusted Finance, insurance and other, net (per retail unit) (2) 


$        1,660


$        1,588


4.5

SG&A expenses


$    737,548


$    726,162


1.7

Adjusted SG&A expenses (2)


$    729,071


$    718,875


1.4

SG&A as % revenues


11.6


11.2



Adjusted SG&A as % revenues (2)


11.5


11.1



SG&A as % gross profit


73.1


71.8



Adjusted SG&A as % gross profit (2)


71.7


71.2



Operating margin %


3.6


3.7



Adjusted operating margin % (2)


4.0


4.0











(1)

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

(2)

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.

(3)

Finance, insurance and other revenue represents fees earned for the financing of vehicle sales transactions and from the sale of insurance and vehicle service contracts. Such amounts are reported net of estimated amounts to be charged back in the future. As a result, finance, insurance and other revenue and gross profits are the same.

 

Group 1 Automotive, Inc.

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

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended September 30,



2017


2016


% Increase/

(Decrease)


Constant Currency (2)

% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$    270,750


$    254,246


6.5


6.2

Used vehicle retail sales


120,723


104,692


15.3


15.6

Used vehicle wholesale sales


30,565


27,891


9.6


9.8

Total used


151,288


132,583


14.1


14.4

Parts and service


37,360


35,360


5.7


6.0

Finance, insurance and other, net


9,487


8,634


9.9


9.8

Total 


$    468,885


$    430,823


8.8


8.8










GROSS MARGIN %:









New vehicle retail sales


5.2


5.5





Used vehicle retail sales


4.9


4.8





Used vehicle wholesale sales


(1.1)


(1.5)





Total used


3.7


3.5





Parts and service


58.1


55.7





Finance, insurance and other, net


100.0


100.0





Total


10.9


10.9














GROSS PROFIT:









New vehicle retail sales


$      14,065


$      13,919


1.0


0.5

Used vehicle retail sales


5,970


5,034


18.6


19.0

Used vehicle wholesale sales


(332)


(409)


18.8


17.3

Total used


5,638


4,625


21.9


22.2

Parts and service


21,710


19,683


10.3


10.6

Finance, insurance and other, net


9,487


8,634


9.9


9.8

Total 


$      50,900


$      46,861


8.6


8.6










UNITS SOLD:









Retail new vehicles sold


8,573


8,331


2.9



Retail used vehicles sold


5,094


4,643


9.7



Wholesale used vehicles sold


3,795


3,563


6.5



Total used


8,889


8,206


8.3












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$      31,582


$      30,518


3.5


3.2

Used vehicle retail


$      23,699


$      22,548


5.1


5.4










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$        1,641


$        1,671


(1.8)


(2.3)

Used vehicle retail sales


1,172


1,084


8.1


8.5

Used vehicle wholesale sales


(87)


(115)


24.3


22.3

Total used


634


564


12.4


12.8

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


$           694


$           665


4.4


4.2










OTHER: 









SG&A expenses


$      41,538


$      38,836


7.0


7.2

SG&A as % revenues


8.9


9.0





SG&A as % gross profit


81.6


82.9





Operating margin %


1.6


1.5
















Nine Months Ended September 30,



2017


2016


% Increase/
(Decrease)


Constant Currency (2)

% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$    719,059


$    746,389


(3.7)


4.6

Used vehicle retail sales


336,591


326,141


3.2


12.4

Used vehicle wholesale sales


84,564


89,360


(5.4)


3.1

Total used


421,155


415,501


1.4


10.4

Parts and service


101,479


105,032


(3.4)


5.1

Finance, insurance and other, net


26,498


26,338


0.6


9.4

Total 


$ 1,268,191


$ 1,293,260


(1.9)


6.6










GROSS MARGIN %:









New vehicle retail sales


5.6


5.7





Used vehicle retail sales


5.1


5.2





Used vehicle wholesale sales


(0.6)


0.1





Total used


3.9


4.1





Parts and service


57.6


55.1





Finance, insurance and other, net


100.0


100.0





Total


11.2


11.1














GROSS PROFIT:









New vehicle retail sales


$      40,190


$      42,704


(5.9)


2.2

Used vehicle retail sales


17,047


16,926


0.7


10.1

Used vehicle wholesale sales


(494)


92


(637.0)


(1,035.6)

Total used


16,553


17,018


(2.7)


4.4

Parts and service


58,473


57,903


1.0


9.7

Finance, insurance and other, net


26,498


26,338


0.6


9.4

Total 


$    141,714


$    143,963


(1.6)


7.1










UNITS SOLD:









Retail new vehicles sold


23,853


22,956


3.9



Retail used vehicles sold


15,015


13,718


9.5



Wholesale used vehicles sold


11,039


10,803


2.2



Total used


26,054


24,521


6.3












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$      30,145


$      32,514


(7.3)


0.7

Used vehicle retail


$      22,417


$      23,775


(5.7)


2.7










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$        1,685


$        1,860


(9.4)


(1.6)

Used vehicle retail sales


1,135


1,234


(8.0)


0.6

Used vehicle wholesale sales


(45)


9


(600.0)


(1,015.6)

Total used


635


694


(8.5)


(1.7)

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


$           682


$           718


(5.0)


3.2










OTHER: 









SG&A expenses


$    113,338


$    112,159


1.1


9.8

Adjusted SG&A expenses(2)


$    113,050


$    111,598


1.3


10.1

SG&A as % revenues


8.9


8.7





Adjusted SG&A as % revenues (2)


8.9


8.6





SG&A as % gross profit


80.0


77.9





Adjusted SG&A as % gross profit (2)


79.8


77.5





Operating margin %


1.9


2.1





Adjusted operating margin % (2)


1.9


2.1















(1)

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

(2)

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 September 30,



2017


2016


% Increase/
(Decrease)


Constant Currency (2)
% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$   78,689


$   72,086


9.2


6.5

Used vehicle retail sales


22,846


18,717


22.1


19.0

Used vehicle wholesale sales


2,818


811


247.5


239.0

Total used


25,664


19,528


31.4


28.1

Parts and service


12,445


11,138


11.7


9.0

Finance, insurance and other, net


2,157


1,595


35.2


31.9

Total 


$ 118,955


$ 104,347


14.0


11.2










GROSS MARGIN %:









New vehicle retail sales


5.7


5.8





Used vehicle retail sales


7.4


7.7





Used vehicle wholesale sales


7.7


7.3





Total used


7.4


7.6





Parts and service


45.5


38.8





Finance, insurance and other, net


100.0


100.0





Total


11.9


11.1














GROSS PROFIT:









New vehicle retail sales


$     4,464


$     4,182


6.7


4.2

Used vehicle retail sales


1,689


1,433


17.9


14.9

Used vehicle wholesale sales


216


59


266.1


258.5

Total used


1,905


1,492


27.7


24.5

Parts and service


5,665


4,327


30.9


27.8

Finance, insurance and other, net


2,157


1,595


35.2


31.9

Total 


$   14,191


$   11,596


22.4


19.4










UNITS SOLD:









Retail new vehicles sold


2,155


2,152


0.1



Retail used vehicles sold


1,028


922


11.5



Wholesale used vehicles sold


242


283


(14.5)



Total used


1,270


1,205


5.4












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$   36,515


$   33,497


9.0


6.3

Used vehicle retail


$   22,224


$   20,300


9.5


6.7










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$     2,071


$     1,943


6.6


4.0

Used vehicle retail sales


1,643


1,554


5.7


3.1

Used vehicle wholesale sales


893


208


329.3


319.2

Total used


1,500


1,238


21.2


18.2

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


$        678


$        519


30.6


27.4










OTHER: 









SG&A expenses


$   12,746


$   11,762


8.4


5.7

Adjusted SG&A expenses(2)


$   12,746


$   11,488


11.0


8.2

SG&A as % revenues


10.7


11.3





Adjusted SG&A as % revenues (2)


10.7


11.0





SG&A as % gross profit


89.8


101.4





Adjusted SG&A as % gross profit (2)


89.8


99.1





Operating margin %


0.9


(0.4)





Adjusted operating margin % (2)


0.9


(0.1)
















Nine Months Ended September 30,



2017


2016


% Increase/

 (Decrease)


Constant Currency (2) 
% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$ 204,640


$ 200,165


2.2


(7.8)

Used vehicle retail sales


64,126


50,794


26.2


13.4

Used vehicle wholesale sales


8,247


1,871


340.8


301.7

Total used


72,373


52,665


37.4


23.6

Parts and service


34,294


29,006


18.2


6.9

Finance, insurance and other, net


5,913


4,178


41.5


28.1

Total 


$ 317,220


$ 286,014


10.9


0.0










GROSS MARGIN %:









New vehicle retail sales


5.8


5.7





Used vehicle retail sales


7.3


5.9





Used vehicle wholesale sales


7.9


7.4





Total used


7.4


6.0





Parts and service


45.8


39.0





Finance, insurance and other, net


100.0


100.0





Total


12.2


10.5














GROSS PROFIT:









New vehicle retail sales


$   11,858


$   11,394


4.1


(6.2)

Used vehicle retail sales


4,708


3,018


56.0


43.8

Used vehicle wholesale sales


653


138


373.2


330.1

Total used


5,361


3,156


69.9


56.3

Parts and service


15,722


11,316


38.9


25.5

Finance, insurance and other, net


5,913


4,178


41.5


28.1

Total 


$   38,854


$   30,044


29.3


17.0










UNITS SOLD:









Retail new vehicles sold


5,864


6,690


(12.3)



Retail used vehicles sold


2,925


2,901


0.8



Wholesale used vehicles sold


723


634


14.0



Total used


3,648


3,535


3.2












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$   34,898


$   29,920


16.6


5.2

Used vehicle retail


$   21,923


$   17,509


25.2


12.4










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$     2,022


$     1,703


18.7


7.0

Used vehicle retail sales


1,610


1,040


54.8


42.6

Used vehicle wholesale sales


903


218


314.2


277.1

Total used


1,470


893


64.6


51.5

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


$        673


$        436


54.4


39.8










OTHER: 









SG&A expenses


$   34,693


$   29,192


18.8


7.6

Adjusted SG&A expenses(2)


$   34,693


$   28,918


20.0


8.6

SG&A as % revenues


10.9


10.2





Adjusted SG&A as % revenues (2)


10.9


10.1





SG&A as % gross profit


89.3


97.2





Adjusted SG&A as % gross profit (2)


89.3


96.3





Operating margin %


1.0


0.0





Adjusted operating margin % (2)


1.0


0.1















(1)

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

(2)

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 September 30,



2017


2016


% Increase/

(Decrease)


Constant Currency (2)

% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$ 1,632,489


$ 1,564,571


4.3


4.2

Used vehicle retail sales


701,226


691,715


1.4


1.3

Used vehicle wholesale sales


95,935


102,722


(6.6)


(6.6)

Total used


797,161


794,437


0.3


0.3

Parts and service


331,540


315,570


5.1


5.0

Finance, insurance and other, net


106,839


106,914


(0.1)


(0.1)

Total 


$ 2,868,029


$ 2,781,492


3.1


3.0










GROSS MARGIN %:









New vehicle retail sales


5.2


5.1





Used vehicle retail sales


6.5


6.6





Used vehicle wholesale sales


(0.3)


(1.8)





Total used


5.7


5.5





Parts and service


53.9


54.3





Finance, insurance and other, net


100.0


100.0





Total


14.5


14.4














GROSS PROFIT:









New vehicle retail sales


$      84,241


$      79,371


6.1


5.9

Used vehicle retail sales


45,297


45,376


(0.2)


(0.2)

Used vehicle wholesale sales


(254)


(1,827)


86.1


85.5

Total used


45,043


43,549


3.4


3.4

Parts and service


178,856


171,225


4.5


4.4

Finance, insurance and other, net


106,839


106,914


(0.1)


(0.1)

Total 


$    414,979


$    401,059


3.5


3.4










UNITS SOLD:









Retail new vehicles sold


45,645


44,563


2.4



Retail used vehicles sold


32,215


32,365


(0.5)



Wholesale used vehicles sold


13,709


14,678


(6.6)



Total used


45,924


47,043


(2.4)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$      35,765


$      35,109


1.9


1.7

Used vehicle retail


$      21,767


$      21,372


1.8


1.8










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$        1,846


$        1,781


3.6


3.4

Used vehicle retail sales


1,406


1,402


0.3


0.2

Used vehicle wholesale sales


(19)


(124)


84.7


84.5

Total used


981


926


5.9


5.9

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


$        1,372


$        1,390


(1.3)


(1.3)










OTHER: 









Adjusted Finance, insurance and other revenue, net(2) (3)


$    113,389


$    106,914


6.1


6.0

Adjusted Total revenue (2)


$ 2,874,579


$ 2,781,492


3.3


3.2

Adjusted Total gross profit (2) 


$    421,529


$    401,059


5.1


5.0

Adjusted Total gross margin (2) 


14.7


14.4





Adjusted Finance, insurance and other, net (per retail unit) (2) 


$        1,456


$        1,390


4.7


4.7

SG&A expenses


$    313,146


$    293,749


6.6


6.5

Adjusted SG&A expenses (2)


$    303,479


$    293,025


3.6


3.5

SG&A as % revenues


10.9


10.6





Adjusted SG&A as % revenues (2)


10.6


10.5





SG&A as % gross profit


75.5


73.2





Adjusted SG&A as % gross profit (2)


72.0


73.1





Operating margin %


2.7


3.0





Adjusted operating margin % (2)


3.6


3.4
















Nine Months Ended September 30,



2017


2016


% Increase/

 (Decrease)


Constant Currency (2)

% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$ 4,364,999


$ 4,452,137


(2.0)


(1.0)

Used vehicle retail sales


2,015,330


2,061,772


(2.3)


(1.1)

Used vehicle wholesale sales


292,131


293,234


(0.4)


2.0

Total used


2,307,461


2,355,006


(2.0)


(0.7)

Parts and service


970,961


930,493


4.3


5.0

Finance, insurance and other, net


306,875


310,435


(1.1)


(0.6)

Total 


$ 7,950,296


$ 8,048,071


(1.2)


(0.2)










GROSS MARGIN %:









New vehicle retail sales


5.2


5.2





Used vehicle retail sales


6.6


6.8





Used vehicle wholesale sales







Total used


5.8


6.0





Parts and service


53.9


54.1





Finance, insurance and other, net


100.0


100.0





Total


15.0


14.7














GROSS PROFIT:









New vehicle retail sales


$    225,956


$    229,652


(1.6)


(0.6)

Used vehicle retail sales


133,971


140,984


(5.0)


(4.1)

Used vehicle wholesale sales


(73)


17


(529.4)


(3,053.6)

Total used


133,898


141,001


(5.0)


(4.5)

Parts and service


523,457


503,098


4.0


4.8

Finance, insurance and other, net


306,875


310,435


(1.1)


(0.6)

Total 


$ 1,190,186


$ 1,184,186


0.5


1.2










UNITS SOLD:









Retail new vehicles sold


122,807


126,322


(2.8)



Retail used vehicles sold


94,096


96,206


(2.2)



Wholesale used vehicles sold


41,077


41,708


(1.5)



Total used


135,173


137,914


(2.0)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$      35,544


$      35,244


0.8


1.8

Used vehicle retail


$      21,418


$      21,431


(0.1)


1.1










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$        1,840


$        1,818


1.2


2.2

Used vehicle retail sales


1,424


1,465


(2.8)


(2.0)

Used vehicle wholesale sales


(2)



-


(3,099.0)

Total used


991


1,022


(3.0)


(2.5)

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


$        1,415


$        1,395


1.4


2.0










OTHER: 









Adjusted Finance, insurance and other revenue, net(2) (3)


$    313,425


$    310,435


1.0


1.5

Adjusted Total revenue (2)


$ 7,956,846


$ 8,048,071


(1.1)


(0.1)

Adjusted Total gross profit (2) 


$ 1,196,736


$ 1,184,186


1.1


1.8

Adjusted Total gross margin (2) 


15.0


14.7





Adjusted Finance, insurance and other, net (per retail unit) (2) 


$        1,445


$        1,395


3.6


4.2

SG&A expenses


$    885,579


$    866,513


2.2


3.0

Adjusted SG&A expenses (2)


$    876,814


$    859,391


2.0


2.8

SG&A as % revenues


11.1


10.8





Adjusted SG&A as % revenues (2)


11.0


10.7





SG&A as % gross profit


74.4


73.2





Adjusted SG&A as % gross profit (2)


73.3


72.6





Operating margin %


3.2


3.3





Adjusted operating margin % (2)


3.5


3.6















(1)

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

(2)

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.

(3)

Finance, insurance and other revenue represents fees earned for the financing of vehicle sales transactions and from the sale of insurance and vehicle service contracts. Such amounts are reported net of estimated amounts to be charged back in the future. As a result, finance, insurance and other revenue and gross profits are the same.

 

Group 1 Automotive, Inc.

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

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended September 30,



2017


2016


% Increase/
(Decrease)

FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:







As reported

$               96,383


$      98,295


(1.9)


  Pre-tax adjustments:







    Catastrophic events 

6,550


-




   Adjusted Finance, insurance and other revenue, net (1)

$             102,933


$      98,295


4.7








TOTAL REVENUES RECONCILIATION: 







As reported

$          2,301,959


$ 2,274,723


1.2


  Pre-tax adjustments:







    Catastrophic events 

6,550


-




   Adjusted Total Revenues (1)

$          2,308,509


$ 2,274,723


1.5








TOTAL GROSS PROFIT RECONCILIATION:







As reported

$             353,567


$    346,726


2.0


  Pre-tax adjustments:







    Catastrophic events 

6,550


-




   Adjusted Total Gross Profit (1)

$             360,117


$    346,726


3.9








SG&A RECONCILIATION:







As reported

$             261,787


$    246,501


6.2


  Pre-tax adjustments:







    Catastrophic events 

(8,149)


(450)




    Gain (loss) on real estate and dealership transactions 

(798)


1,176




    Legal settlements 

(720)


-




   Adjusted SG&A (1)

$             252,120


$    247,227


2.0








TOTAL GROSS MARGIN %:







Unadjusted

15.4


15.2




Adjusted (1)

15.6


15.2



FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):







Unadjusted

$                 1,566


$        1,588


(1.4)


Adjusted (1)

$                 1,673


$        1,588


5.4

SG&A AS % REVENUES:







Unadjusted

11.4


10.8




Adjusted (1)

11.0


10.9



SG&A AS % GROSS PROFIT:







Unadjusted

74.0


71.1




Adjusted (1)

70.0


71.3



OPERATING MARGIN %:







Unadjusted

3.0


3.4




Adjusted (1), (2)

4.1


3.9



PRETAX MARGIN %:







Unadjusted

1.8


2.3




Adjusted (1), (2)

2.9


2.8










SAME STORE FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:







As reported

$               95,195


$      96,685


(1.5)


  Pre-tax adjustments:







    Catastrophic events 

6,550


-




   Adjusted Finance, insurance and other revenue, net (1)

$             101,745


$      96,685


5.2








SAME STORE TOTAL REVENUES RECONCILIATION: 







As reported

$          2,280,189


$ 2,246,322


1.5


  Pre-tax adjustments:







    Catastrophic events 

6,550


-




   Adjusted Total Revenues (1)

$          2,286,739


$ 2,246,322


1.8








SAME STORE TOTAL GROSS PROFIT RECONCILIATION:







As reported

$             349,888


$    342,602


2.1


  Pre-tax adjustments:







    Catastrophic events 

6,550


-




   Adjusted Total Gross Profit (1)

$             356,438


$    342,602


4.0








SAME STORE SG&A RECONCILIATION:







As reported

$             258,862


$    243,151


6.5


  Pre-tax adjustments:







    Catastrophic events 

(8,149)


(450)




    Loss on real estate and dealership transactions 

(798)


-




    Legal settlements 

(720)


-




   Adjusted Same Store SG&A (1)

$             249,195


$    242,701


2.7








SAME STORE TOTAL GROSS MARGIN %:







Unadjusted

15.3


15.3




Adjusted (1)

15.6


15.3



SAME STORE FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):







Unadjusted

$                 1,560


$        1,588


(1.8)


Adjusted (1)

$                 1,668


$        1,588


5.0

SAME STORE SG&A AS % REVENUES:







Unadjusted

11.4


10.8




Adjusted (1)

10.9


10.8



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

74.0


71.0




Adjusted (1)

69.9


70.8



SAME STORE OPERATING MARGIN %







Unadjusted

3.0


3.5




Adjusted (1), (3)

4.2


4.0












Nine Months Ended September 30,



2017


2016


% Increase/
(Decrease)

FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:







As reported

$             276,754


$    284,644


(2.8)


  Pre-tax adjustments:







    Catastrophic events 

6,550


-




    Adjusted Finance, insurance and other revenue, net (1)

$             283,304


$    284,644


(0.5)








TOTAL REVENUES RECONCILIATION: 







As reported

$          6,393,368


$ 6,563,739


(2.6)


  Pre-tax adjustments:







    Catastrophic events 

6,550


-




    Adjusted Total Revenues (1)

$          6,399,918


$ 6,563,739


(2.5)








TOTAL GROSS PROFIT RECONCILIATION:







As reported

$          1,014,636


$ 1,024,033


(0.9)


  Pre-tax adjustments:







    Catastrophic events 

6,550


-




   Adjusted Total Gross Profit (1)

$          1,021,186


$ 1,024,033


(0.3)








SG&A RECONCILIATION:







As reported

$             741,904


$    737,730


0.6


  Pre-tax adjustments:







    Catastrophic events 

(8,792)


(5,873)




    Gain (loss) on real estate and dealership transactions 

(798)


1,856




    Acquisition costs 

-


(30)




         Legal Settlements (4)

1,113


-




   Adjusted SG&A (1)

$             733,427


$    733,683


(0.0)








TOTAL GROSS MARGIN %:







Unadjusted

15.9


15.6




Adjusted (1)

16.0


15.6



FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):







Unadjusted

$                 1,628


$        1,585


2.7


Adjusted (1)

$                 1,667


$        1,585


5.2

SG&A AS % REVENUES:







Unadjusted

11.6


11.2




Adjusted (1)

11.5


11.2



SG&A AS % OF GROSS PROFIT:







Unadjusted

73.1


72.0




Adjusted (1)

71.8


71.6



OPERATING MARGIN %:







 Unadjusted 

3.6


3.7




Adjusted (1), (2)

3.9


3.9



PRETAX MARGIN %:







Unadjusted

2.2


2.5




Adjusted (1), (2)

2.6


2.8










SAME STORE FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:







As reported

$             274,464


$    279,919


(1.9)


  Pre-tax adjustments:







    Catastrophic events 

6,550


-




   Adjusted Finance, insurance and other revenue, net (1)

$             281,014


$    279,919


0.4








SAME STORE TOTAL REVENUES RECONCILIATION: 







As reported

$          6,364,885


$ 6,468,797


(1.6)


  Pre-tax adjustments:







    Catastrophic events 

6,550


-




    Adjusted Total Revenues (1)

$          6,371,435


$ 6,468,797


(1.5)








SAME STORE TOTAL GROSS PROFIT RECONCILIATION:







As reported

$          1,009,618


$ 1,010,179


(0.1)


  Pre-tax adjustments:







    Catastrophic events 

6,550


-




   Adjusted Total Gross Profit (1)

$          1,016,168


$ 1,010,179


0.6








SAME STORE SG&A RECONCILIATION:







As reported

$             737,548


$    725,162


1.7


  Pre-tax adjustments:







    Catastrophic events 

(8,792)


(5,873)




    Loss on real estate and dealership transactions 

(798)


(384)




    Acquisition costs 

-


(30)




         Legal Settlements (4)

1,113


-




   Adjusted Same Store SG&A(1)

$             729,071


$    718,875


1.4








SAME STORE TOTAL GROSS MARGIN %:







Unadjusted

15.9


15.6




Adjusted (1)

15.9


15.6



SAME STORE FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):







Unadjusted

$                 1,622


$        1,588


2.1


Adjusted (1)

$                 1,660


$        1,588


4.5

SAME STORE SG&A AS % REVENUES:







Unadjusted

11.6


11.2




Adjusted (1)

11.5


11.1



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

73.1


71.8




Adjusted (1)

71.7


71.2



SAME STORE OPERATING MARGIN %







Unadjusted

3.6


3.7




Adjusted (1), (3)

4.0


4.0










(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 $9,526 for the three and nine months ended September 30, 2017, respectively, and $10,855 and $12,389 for the three and nine months ended September 30, 2016, respectively.

(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $9,526 for the three and nine months ended September 30, 2017, respectively, and $10,793 and $12,327 for the three and nine months ended September 30, 2016, respectively.

(4)

For the nine months ended September 30, 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)










 Nine Months Ended September 30, 



2017


2016


% Increase/

 (Decrease)

SG&A RECONCILIATION:







As reported

$ 137,475


$ 119,154


15.4


  Pre-tax adjustments:







    Acquisition costs 

(288)


(561)




   Adjusted SG&A (1)

$ 137,187


$ 118,593


15.7








SG&A AS % REVENUES:







Unadjusted

9.3


8.9




Adjusted (1)

9.3


8.9



SG&A AS % OF GROSS PROFIT:







Unadjusted

83.4


80.2




Adjusted (1)

83.2


79.8



OPERATING MARGIN %:







Unadjusted

1.5


1.8




Adjusted (1)

1.5


1.9



PRETAX MARGIN %:







Unadjusted

1.1


1.3




Adjusted (1),

1.1


1.3










SAME STORE SG&A RECONCILIATION:







As reported

$ 113,338


$ 112,159


1.1


  Pre-tax adjustments:







    Acquisition costs 

(288)


(561)




   Adjusted Same Store SG&A (1)

$ 113,050


$ 111,598


1.3








SAME STORE SG&A AS % REVENUES:







Unadjusted

8.9


8.7




Adjusted (1)

8.9


8.6



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

80.0


77.9




Adjusted (1)

79.8


77.5



SAME STORE OPERATING MARGIN %







Unadjusted

1.9


2.1




Adjusted (1)

1.9


2.1










(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.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Brazil

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended September 30,



2017


2016


% Increase/
(Decrease)

SG&A RECONCILIATION:







As reported

$ 13,145


$ 12,896


1.9


  Pre-tax adjustments:







    Foreign transaction tax 

-


(274)




   Adjusted SG&A (1)

$ 13,145


$ 12,622


4.1








SG&A AS % REVENUES:







Unadjusted

11.0


11.5




Adjusted (1)

11.0


11.2



SG&A AS % GROSS PROFIT:







Unadjusted

92.2


103.6




Adjusted (1)

92.2


101.4



OPERATING MARGIN %







Unadjusted

0.6


(0.6)




Adjusted (1),

0.6


(0.4)



PRETAX MARGIN %:







Unadjusted

0.5


(0.8)




Adjusted (1)

0.5


(0.5)










SAME STORE SG&A RECONCILIATION:







As reported

$ 12,746


$ 11,762


8.4


  Pre-tax adjustments:







    Foreign transaction tax 

-


(274)




   Adjusted Same Store SG&A (1)

$ 12,746


$ 11,488


11.0








SAME STORE SG&A AS % REVENUES:







Unadjusted

10.7


11.3




Adjusted (1)

10.7


11.0



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

89.8


101.4




Adjusted (1)

89.8


99.1



SAME STORE OPERATING MARGIN %







Unadjusted

0.9


(0.4)




Adjusted (1)

0.9


(0.1)












 Nine Months Ended September 30, 



2017


2016


% Increase/

 (Decrease)

SG&A RECONCILIATION:







As reported

$ 37,295


$ 34,808


7.1


  Pre-tax adjustments:







    Gain (loss) on real estate and dealership transactions 

-


(372)




    Foreign transaction tax 

-


(274)




   Adjusted SG&A (1)

$ 37,295


$ 34,162


9.2








SG&A AS % REVENUES:







Unadjusted

11.2


11.1




Adjusted (1)

11.2


10.9



SG&A AS % OF GROSS PROFIT:







Unadjusted

92.4


104.6




Adjusted (1)

92.4


102.6



OPERATING MARGIN %:







Unadjusted

0.6


(0.9)




Adjusted (1), (2)

0.6


(0.5)



PRETAX MARGIN %:







Unadjusted

0.4


(1.0)




Adjusted (1), (2)

0.4


(0.7)










SAME STORE SG&A RECONCILIATION:







As reported

$ 34,693


$ 29,192


18.8


  Pre-tax adjustments:







    Foreign transaction tax 

-


(274)




   Adjusted Same Store SG&A (1)

$ 34,693


$ 28,918


20.0








SAME STORE SG&A AS % REVENUES:







Unadjusted

10.9


10.2




Adjusted (1)

10.9


10.1



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

89.3


97.2




Adjusted (1)

89.3


96.3



SAME STORE OPERATING MARGIN %







Unadjusted

1.0


0.0




Adjusted (1)

1.0


0.1










(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 nine months ended September 30, 2016.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - CONSOLIDATED

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended September 30,



2017


2016


% Increase/

(Decrease)








NET INCOME RECONCILIATION:







As reported

$            29,881


$            35,366


(15.5)


  Pre-tax adjustments:







    Catastrophic events  







    Pre-tax 

14,699


450




    Tax impact 

(5,677)


(169)




    (Gain) loss on real estate and dealership transactions 







    Pre-tax 

798


(1,114)




    Tax impact 

(301)


418




    Legal settlements  







    Pre-tax 

720


-




    Tax impact 

(270)


-




    Foreign transaction tax  







    Pre-tax 

-


274




    Tax impact 

-


-




    Non-cash asset impairment 







    Pre-tax  

9,526


10,793




    Tax impact 

(3,579)


(4,047)




    Allowance for uncertain tax positions 







    Pre-tax  

-


-




    Tax impact 

834


-




   Adjusted net income (1)

$            46,631


$            41,971


11.1








ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED







COMMON SHARES RECONCILIATION:







Adjusted net income (1)

$            46,631


$            41,971


11.1


Less: Adjusted earnings allocated to participating securities

1,603


1,695


(5.4)


Adjusted net income available to diluted common shares (1)

$            45,028


$            40,276


11.8








 DILUTED INCOME PER COMMON SHARE RECONCILIATION: 







As reported

$                1.43


$                1.65


(13.3)


After-tax adjustments:







    Catastrophic events  

0.44


0.01




    (Gain) loss on real estate and dealership transactions 

0.02


(0.03)




    Legal settlements  

0.02


-




    Foreign transaction tax  

-


0.01




    Non-cash asset impairment 

0.28


0.32




    Allowance for uncertain tax positions 

0.04


-




   Adjusted diluted income per share (1)

$                2.23


$                1.96


13.8








FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:







As reported

$          110,993


$          108,710


2.1


  Pre-tax adjustments:







    Catastrophic events 

6,550


-




   Adjusted Finance, insurance and other revenue, net (1)

$          117,543


$          108,710


8.1








TOTAL REVENUES RECONCILIATION: 







As reported

$       3,012,292


$       2,823,176


6.7


  Pre-tax adjustments:







    Catastrophic events 

6,550


-




   Adjusted Total Revenues (1)

$       3,018,842


$       2,823,176


6.9








TOTAL GROSS PROFIT RECONCILIATION:







As reported

$          431,420


$          406,668


6.1


  Pre-tax adjustments:







    Catastrophic events 

6,550


-




   Adjusted Total Gross Profit (1)

$          437,970


$          406,668


7.7








SG&A RECONCILIATION:







As reported

$          328,327


$          299,006


9.8


  Pre-tax adjustments:







    Catastrophic events  

(8,149)


(450)




    Gain (loss) on real estate and dealership transactions 

(798)


1,176




    Legal settlements  

(720)


-




    Foreign transaction tax  

-


(274)




   Adjusted SG&A(1)

$          318,660


$          299,458


6.4








TOTAL GROSS MARGIN %:







Unadjusted

14.3


14.4




Adjusted (1)

14.5


14.4



FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):







Unadjusted

$              1,343


$              1,383


(2.9)


Adjusted (1)

$              1,422


$              1,383


2.8

SG&A AS % REVENUES:







Unadjusted

10.9


10.6




Adjusted (1)

10.6


10.6



SG&A AS % GROSS PROFIT:







Unadjusted

76.1


73.5




Adjusted (1)

72.8


73.6



OPERATING MARGIN %







Unadjusted

2.6


3.0




Adjusted (1), (2)

3.5


3.3



PRETAX MARGIN %:







Unadjusted

1.6


2.0




Adjusted (1), (2)

2.4


2.3










SAME STORE FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:







As reported

$          106,839


$          106,914


(0.1)


  Pre-tax adjustments:







    Catastrophic events 

6,550


-




   Adjusted Finance, insurance and other revenue, net (1)

$          113,389


$          106,914


6.1








SAME STORE TOTAL REVENUES RECONCILIATION: 







As reported

$       2,868,029


$       2,781,492


3.1


  Pre-tax adjustments:







    Catastrophic events 

6,550


-




   Adjusted Total Revenues (1)

$       2,874,579


$       2,781,492


3.3








SAME STORE TOTAL GROSS PROFIT RECONCILIATION:







As reported

$          414,979


$          401,059


3.5


  Pre-tax adjustments:







    Catastrophic events 

6,550


-




   Adjusted Total Gross Profit (1)

$          421,529


$          401,059


5.1








SAME STORE SG&A RECONCILIATION:







As reported

$          313,146


$          293,749


6.6


  Pre-tax adjustments:







    Catastrophic events  

(8,149)


(450)




    Loss on real estate and dealership transactions 

(798)


-




    Legal settlements  

(720)


-




    Foreign transaction tax  

-


(274)




   Adjusted Same Store SG&A (1)

$          303,479


$          293,025


3.6








SAME STORE TOTAL GROSS MARGIN %:







Unadjusted

14.5


14.4




Adjusted (1)

14.7


14.4



SAME STORE FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):







Unadjusted

$              1,372


$              1,390


(1.3)


Adjusted (1)

$              1,456


$              1,390


4.7

SAME STORE SG&A AS % REVENUES:







Unadjusted

10.9


10.6




Adjusted (1)

10.6


10.5



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

75.5


73.2




Adjusted (1)

72.0


73.1



SAME STORE OPERATING MARGIN %







Unadjusted

2.7


3.0




Adjusted (1), (3)

3.6


3.4












 Nine Months Ended September 30, 



2017


2016


% Increase/

(Decrease)

NET INCOME RECONCILIATION:







As reported

$          102,953


$          116,237


(11.4)


Adjustments:







    Catastrophic events  







    Pre-tax 

15,341


5,873




    Tax impact 

(5,926)


(2,207)




    (Gain) loss on real estate and dealership transactions 







    Pre-tax 

798


(1,000)




    Tax impact 

(301)


672




    Acquisition costs  

-


-




    Pre-tax 

288


591




    Tax impact 

-


(11)




      Legal Settlements (4)

-


-




    Pre-tax 

(1,113)


-




    Tax impact 

426


-




    Foreign transaction tax  

-


-




    Pre-tax 

-


274




    Tax impact 

-


-




    Non-cash asset impairment 

-


-




    Pre-tax  

9,526


12,327




    Tax impact 

(3,579)


(4,634)




    Allowance for uncertain tax positions 

-


-




    Pre-tax  

-


-




    Tax impact 

834


-




    Foreign deferred income tax benefit 

-


-




    Pre-tax  

-


-




    Tax impact 

-


(1,686)




   Adjusted net income (1)

$          119,247


$          126,436


(5.7)








ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED







COMMON SHARES RECONCILIATION:







Adjusted net income (1)

$          119,247


$          126,436


(5.7)


Less: Adjusted earnings allocated to participating securities

4,248


5,061


(16.1)


Adjusted net income available to diluted common shares (1)

$          114,999


$          121,375


(5.3)








 DILUTED INCOME PER COMMON SHARE RECONCILIATION: 







As reported

$                4.85


$                5.22


(7.1)


  After-tax adjustments:

-


-




    Catastrophic events  

0.44


0.16




    (Gain) loss on real estate and dealership transactions 

0.03


(0.01)




    Acquisition costs including related tax impact  

0.02


0.02




    Legal settlements  

(0.03)


-




    Foreign transaction tax  

-


0.01




    Non-cash asset impairment 

0.27


0.35




    Allowance for uncertain tax positions 

0.04


-




    Foreign deferred income tax benefit 

-


(0.07)




   Adjusted diluted income per share (1)

$                5.62


$                5.68


(1.1)








FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:







As reported

$          314,297


$          316,419


(0.7)


  Pre-tax adjustments:







    Catastrophic events 

6,550


-




   Adjusted Finance, insurance and other revenue, net (1)

$          320,487


$          316,419


1.4








TOTAL REVENUES RECONCILIATION: 







As reported

$       8,203,316


$       8,213,980


(0.1)


  Pre-tax adjustments:







    Catastrophic events 

6,550


-




   Adjusted Total Revenues (1)

$       8,209,866


$       8,213,980


(0.1)








TOTAL GROSS PROFIT RECONCILIATION:







As reported

$       1,219,834


$       1,205,888


1.2


  Pre-tax adjustments:







    Catastrophic events 

6,550


-




   Adjusted Total Gross Profit (1)

$       1,226,384


$       1,205,888


1.7








SG&A RECONCILIATION:







As reported

$          916,674


$          891,692


2.8


  Pre-tax adjustments:







    Catastrophic events  

(8,792)


(5,873)




    Gain (loss) on real estate and dealership transactions 

(798)


1,485




    Acquisition costs 

(288)


(591)




    Legal settlements  

1,113


-




    Foreign transaction tax  

-


(274)




   Adjusted SG&A (1)

$          907,909


$          886,439


2.4








TOTAL GROSS MARGIN %:







Unadjusted

14.9


14.7




Adjusted (1)

14.9


14.7



FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):







Unadjusted

$              1,394


$              1,383


0.8


Adjusted (1)

$              1,423


$              1,383


2.9

SG&A AS % REVENUES:







Unadjusted

11.2


10.9




Adjusted (1)

11.1


10.8



SG&A AS % OF GROSS PROFIT:







Unadjusted

75.1


73.9




Adjusted (1)

74.0


73.5



OPERATING MARGIN %:







Unadjusted

3.1


3.2




Adjusted (1), (2)

3.4


3.4



PRETAX MARGIN %:







Unadjusted

2.0


2.2




Adjusted (1), (2)

2.3


2.4










SAME STORE FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:







As reported

$          306,875


$          310,435


(1.1)


  Pre-tax adjustments:







    Catastrophic events 

6,550


-




   Adjusted Finance, insurance and other revenue, net (1)

$          313,425


$          310,435


1.0








SAME STORE TOTAL REVENUES RECONCILIATION: 







As reported

$       7,950,296


$       8,048,071


(1.2)


  Pre-tax adjustments:







    Catastrophic events 

6,550


-




   Adjusted Total Revenues (1)

$       7,956,846


$       8,048,071


(1.1)








SAME STORE TOTAL GROSS PROFIT RECONCILIATION:







As reported

$       1,190,186


$       1,184,186


0.5


  Pre-tax adjustments:







    Catastrophic events 

6,550


-




   Adjusted Total Gross Profit (1)

$       1,196,736


$       1,184,186


1.1








SAME STORE SG&A RECONCILIATION:







As reported

$          885,579


$          866,513


2.2


  Pre-tax adjustments:







    Catastrophic events  

(8,792)


(5,873)




    Loss on real estate and dealership transactions 

(798)


(384)




    Acquisition costs 

(288)


(591)




    Legal settlements  

1,113


-




    Foreign transaction tax  

-


(274)




   Adjusted Same Store SG&A (1)

$          876,814


$          859,391


2.0








SAME STORE TOTAL GROSS MARGIN %:







Unadjusted

15.0


14.7




Adjusted (1)

15.0


14.7



SAME STORE FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT):







Unadjusted

$              1,415


$              1,395


1.4


Adjusted (1)

$              1,445


$              1,395


3.6

SAME STORE SG&A AS % REVENUES:







Unadjusted

11.1


10.8




Adjusted (1)

11.0


10.7



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

74.4


73.2




Adjusted (1)

73.3


72.6



SAME STORE OPERATING MARGIN %







Unadjusted

3.2


3.3




Adjusted (1), (3)

3.5


3.6










(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, as well as non-cash asset impairment charges of $9,526 for the three and nine months ended September 30, 2017, respectively, and $10,855 and $12,812 for the three and nine months ended September 30, 2016, respectively.

(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $9,526 for the three and nine months ended September 30, 2017, respectively, and $10,794 and $12,327 for the three and nine months ended September 30, 2016, respectively.

(4)

For the nine months ended September 30, 2017, the Company recognized a net pre-tax gain related to a settlement with an OEM of $1.8 million. 

 

View original content:http://www.prnewswire.com/news-releases/group-1-automotive-reports-third-quarter-2017-financial-results-300543834.html

SOURCE Group 1 Automotive, Inc.

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