Market Overview

Group 1 Automotive Reports Record Fourth Quarter & Full Year 2017 Financial Results

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- Delivers All-Time Record Revenue of $11.1 Billion for 2017

- Strong Cost Control Drives Record Fourth Quarter Results

- Benefits $73.0 Million from U.S. Tax Reform Bill

HOUSTON, Feb. 8, 2018 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), ("Group 1" or the "Company"), an international, Fortune 500 automotive retailer, today reported 2017 fourth quarter net income of $110.5 million, diluted earnings per common share of $5.27, adjusted net income (a non-GAAP measure) of $44.3 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $2.11.

As shown in the attached non-GAAP reconciliation tables, the 2017 fourth quarter adjusted results (non-GAAP measures) exclude approximately $66.2 million of net after-tax adjustments, or $3.16 per share, for non-core items. These items primarily relate to a reduction in the corporate income tax rate enacted in the U.S. Tax Reform Bill, which benefited the Company in the fourth quarter of 2017 by approximately $73.0 million after-tax, or $3.48 per share. This benefit was partially offset by non-cash asset impairment charges of approximately $6.5 million after-tax, or $0.30 per share.

For the full year of 2017, net income increased 45.1 percent from the comparable prior-year period, to $213.4 million; and diluted earnings per common share increased 51.1 percent, to $10.08. Full year 2017 adjusted net income was nearly flat at $163.5 million; and adjusted diluted earnings per common share increased 4.2 percent, to an all-time high of $7.73. Total revenue grew 2.2 percent (increased 2.7 percent on a constant currency basis), to a record $11.1 billion.

"Despite the headwinds we encountered in the first half of 2017 in our oil-impacted markets and the significant disruptions across our Southeast Texas markets from Hurricane Harvey, we are pleased to have delivered all-time record revenue of $11.1 billion and all-time record adjusted diluted earnings per share of $7.73 for 2017," said Earl J. Hesterberg, Group 1's president and chief executive officer. "Contributing to the record earnings is the impressive work the teams have done on cost control in the U.S. and Brazil during 2017, with the results of those efforts continuing to provide benefits going forward.  In addition, our team in the U.K. continues to outperform the market, delivering impressive growth even as the overall market slows.  I am pleased with the results in all three regions and believe we are well positioned as we enter 2018."

Consolidated Results for Fourth 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 grew 9.2 percent (7.9 percent) to $2.9 billion.
  • Total gross profit grew 9.4 percent (8.3 percent), to $425.7 million.
  • New vehicle revenues increased 10.2 percent (9.0 percent) on 6.4 percent higher unit sales. New vehicle gross profit improved 7.8 percent (6.5 percent), to $89.5 million.
  • Retail used vehicle revenues increased 8.9 percent (7.4 percent) on 5.4 percent higher unit sales. Retail used vehicle gross profit increased 3.8 percent (2.6 percent), to $40.5 million.
  • Parts and service gross profit increased 9.9 percent (8.9 percent) on revenue growth of 10.5 percent (9.5 percent). Same Store parts and service gross profit increased 6.3 percent (5.5 percent) on revenue growth of 7.3 percent (6.5 percent). U.S. Same Store parts and service gross profit increased 5.3 percent on revenue growth of 6.6 percent.
  • Finance and Insurance (F&I) gross profit PRU increased 3.8 percent (3.0 percent), to $1,495. U.S. F&I gross profit PRU increased $56, or 3.4 percent, to an all-time record of $1,700.
  • Selling, General and Administrative (SG&A) expenses as a percent of gross profit increased 100 basis points, to 72.7 percent. Adjusted SG&A expenses as a percent of gross profit improved 180 basis points, to 72.6 percent.

Consolidated Results for Full Year 2017 (year-over-year comparable basis)

  • Total revenue increased 2.2 percent (2.7 percent), to a record $11.1 billion.
  • Total gross profit grew 3.2 percent (3.6 percent).
  • New vehicle gross profit increased 1.8 percent (2.2 percent) on 1.8 percent (2.3 percent) higher revenues, as the Company retailed 172,200 new vehicles in 2017.
  • Retail used vehicle gross profit decreased 2.7 percent (decreased 2.1 percent) on a revenue increase of 1.5 percent (2.2 percent).  The Company retailed 129,933 used vehicles in 2017, a 0.6 percent increase over 2016.
  • Parts and service gross profit rose 5.8 percent (6.3 percent) on 6.1 percent (6.4 percent) higher revenues.
  • Adjusted F&I revenues rose 3.5 percent (3.8 percent).  U.S. Adjusted F&I gross PRU increased $76, to $1,675.
  • SG&A expenses as a percent of gross profit increased 110 basis points, to 74.5 percent. Adjusted SG&A expenses as a percent of gross profit remained flat at 73.7. Adjusted U.S. SG&A expenses as a percent of gross profit improved 60 basis points, to 71.1 percent.
  • Operating margin and adjusted operating margin remained flat at 3.1 and 3.4 percent, respectively.

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

  • United States:
    The Company's U.S. operations accounted for 78.3 percent of total revenues and 82.4 percent of total gross profit. Total U.S. revenues were $2.3 billion, an increase of 5.4 percent, driven by an 8.5 percent increase in retail new vehicle revenue. New vehicle gross profit PRU grew $18, or 0.9 percent per unit, to $2,067; and total gross profit grew 5.8 percent, to $350.7 million.  The Company has delivered new vehicle gross profit PRU growth for seven of the last eight quarters.  New vehicle inventory ended the quarter at 64 days' supply.

Same Store SG&A expenses as a percent of gross profit improved 60 basis points to 68.9 percent and operating margin improved 40 basis points to 4.1 percent. Adjusted Same Store SG&A expenses as a percent of gross profit improved 300 basis points, to an all-time record of 68.9 percent. Adjusted operating margin improved 40 basis points to an all-time record of 4.2 percent.

  • United Kingdom:
    The Company's U.K. operations accounted for 17.4 percent of total revenues and 14.2 percent of total gross profit. Total U.K. revenues increased 31.1 percent (22.8 percent), to $507.8 million, and were driven by double-digit revenue growth across each business segment, despite the industry decreasing by nearly 13 percent.  Total gross profit increased 36.0 percent (27.4 percent), to $60.4 million

Same Store SG&A expenses as a percent of gross profit improved 30 basis points to 87.1 percent and operating margin improved 10 basis points to 1.1 percent.

  • Brazil:
    The Company's Brazilian operations were profitable during the fourth quarter and accounted for 4.3 percent of total revenues and 3.4 percent of total gross profit. The Company's Same Store new vehicle revenue grew 14.7 percent on a constant currency basis, which outpaced the industry's rebound of 13.5 percent. On a Same Store basis, total revenues grew 13.8 percent, driven by revenue growth of 31.1 percent in F&I, 14.7 percent in new vehicles, 12.2 percent in total used vehicles, and 8.0 percent in parts & service.  F&I gross profit PRU grew 18.8 percent.

The Company's used vehicle operations in Brazil continued to improve during the quarter. On a Same Store constant currency basis, total used vehicle retail margins increased 60 basis points to 7.5 percent and total used vehicle gross profit grew 23.5 percent, on a constant currency basis.

Same Store SG&A expenses as a percent of gross profit increased 150 basis points to 92.0 percent.  Adjusted Same Store SG&A as a percent of gross profit improved 180 basis points to 88.7 percent.

Share Repurchase Authorization

For the full year of 2017, the Company repurchased 649,298 shares at an average price per common share of $61.75 for a total of $40.1 million. As of February 8, 2018, $49.6 million remains available under the Company's prior common stock share repurchase authorization.

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

Corporate Development

As previously announced in 2018, the Company:

  • Opened a Land Rover franchise in Watford, a North London suburb in the U.K., which is expected to generate approximately $35 million in annualized revenues;
  • Acquired Audi El Paso, which is expected to generate approximately $35 million in annualized revenues; and
  • Acquired Subaru El Paso, which is expected to generate approximately $30 million in annualized revenues.

During 2017, the Company acquired a total of 20 franchises, which are expected to generate an estimated $490 million in annual revenues. The Company disposed of three franchises that generated approximately $35 million in trailing-twelve-month revenues at the time of disposition.

Corporate Tax Reform

As a result of the U.S. Tax Reform Bill, which was enacted on December 22, 2017, the federal statutory corporate tax rate was reduced from 35 percent to 21 percent.  This change allowed the Company to record a tax benefit of $73 million based on the revaluation of its net deferred tax liabilities as of the enactment date.  Beginning in 2018, and going forward, the Company estimates this change will reduce its effective tax rate from approximately 36 percent to a range of 23-24 percent, and improve annual cash flow by about $20 million.  As a result of this tax savings, the Company announced it will pay a $500 bonus to approximately 6,600 tenured, non-management, dealership employees and support staff on March 1, 2018 at a total cost of approximately $3.3 million.  This one-time payment will be reflected in the Company's first quarter 2018 results. 

Fourth Quarter 2017 Earnings Conference Call Details

Group 1's senior management will host a conference call today at 10 a.m. ET to discuss the fourth quarter financial results and the Company's outlook and strategy.

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

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

Domestic:

1-888-317-6003

International:

1-412-317-6061

Conference ID:

3198411

A telephonic replay will be available following the call through February 15, 2018 by dialing:

Domestic:     

1-877-344-7529

International:  

1-412-317-0088

Replay ID:      

10116253

About Group 1 Automotive, Inc.

Group 1 owns and operates 175 automotive dealerships, 230 franchises, and 48 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
Senior Vice President, Manufacturer Relations, Financial Services and Public Affairs
Group 1 Automotive, Inc.
713-647-5770 | pdelongchamps@group1auto.com

or

Clint Woods
Pierpont Communications, Inc.
713-627-2223 | cwoods@piercom.com  

Group 1 Automotive, Inc.

Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)








 Three Months Ended December 31, 


2017


2016


% Increase/

(Decrease)

REVENUES:






New vehicle retail sales

$ 1,661,309


$ 1,507,513


10.2

Used vehicle retail sales

709,072


651,144


8.9

Used vehicle wholesale sales

91,809


99,774


(8.0)

Parts and service

343,510


310,966


10.5

Finance, insurance and other, net

114,705


104,235


10.0

Total revenues

2,920,405


2,673,632


9.2







COST OF SALES:






New vehicle retail sales

1,571,774


1,424,445


10.3

Used vehicle retail sales

668,558


612,098


9.2

Used vehicle wholesale sales

94,199


103,754


(9.2)

Parts and service

160,199


144,154


11.1

Total cost of sales

2,494,730


2,284,451


9.2







GROSS PROFIT

425,675


389,181


9.4







SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

309,521


279,071


10.9







DEPRECIATION AND AMORTIZATION EXPENSE

15,178


13,166


15.3







ASSET IMPAIRMENTS

9,980


20,027


(50.2)







OPERATING INCOME

90,996


76,917


18.3







OTHER EXPENSE:






Floorplan interest expense

(13,713)


(11,189)


22.6

Other interest expense, net

(18,309)


(17,208)


6.4

INCOME BEFORE INCOME TAXES

58,974


48,520


21.5







PROVISION FOR INCOME TAXES

51,515


(17,692)


391.2







NET INCOME 

$    110,489


$      30,828


258.4

Less: Earnings allocated to participating securities

$        3,718


$        1,220


204.8

Earnings available to diluted common shares

$    106,771


$      29,608


260.6

DILUTED EARNINGS PER SHARE

$          5.27


$          1.44


266.0

Weighted average dilutive common shares outstanding

20,261


20,592


(1.6)

Weighted average participating securities

708


858


(17.5)

Total weighted average shares outstanding

20,969


21,450


(2.2)








 Twelve Months Ended December 31, 


2017


2016


% Increase/

(Decrease)

REVENUES:






New vehicle retail sales

$ 6,157,531


$ 6,046,075


1.8

Used vehicle retail sales

2,798,986


2,757,713


1.5

Used vehicle wholesale sales

400,170


401,863


(0.4)

Parts and service

1,338,032


1,261,307


6.1

Finance, insurance and other, net

429,002


420,654


2.0

Total revenues

11,123,721


10,887,612


2.2







COST OF SALES:






New vehicle retail sales

5,835,526


5,729,697


1.8

Used vehicle retail sales

2,621,431


2,575,234


1.8

Used vehicle wholesale sales

402,912


406,305


(0.8)

Parts and service

618,343


581,307


6.4

Total cost of sales

9,478,212


9,292,543


2.0







GROSS PROFIT

1,645,509


1,595,069


3.2







SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

1,226,195


1,170,763


4.7







DEPRECIATION AND AMORTIZATION EXPENSE

57,936


51,234


13.1







ASSET IMPAIRMENTS

19,506


32,838


(40.6)







OPERATING INCOME

341,872


340,234


0.5







OTHER EXPENSE:






Floorplan interest expense

(52,372)


(44,927)


16.6

Other interest expense, net

(70,497)


(67,936)


3.8

INCOME BEFORE INCOME TAXES

219,003


227,371


(3.7)







PROVISION FOR INCOME TAXES

(5,561)


(80,306)


(93.1)







NET INCOME

$    213,442


$    147,065


45.1

Less: Earnings allocated to participating securities

$        7,511


$        5,869


28.0

Earnings available to diluted common shares

$    205,931


$    141,196


45.8

DILUTED EARNINGS PER SHARE

$        10.08


$          6.67


51.1

Weighted average dilutive common shares outstanding

20,425


21,170


(3.5)

Weighted average participating securities

752


886


(15.1)

Total weighted average shares outstanding

21,177


22,056


(4.0)

 

Group 1 Automotive, Inc.

Consolidated Balance Sheets

(Dollars in thousands)










December

31, 2017


December

31, 2016


% Increase/

(Decrease)

 ASSETS: 


(Unaudited)





 CURRENT ASSETS: 







 Cash and cash equivalents 


$      28,787


$          20,992


37.1

 Contracts in transit and vehicle receivables, net 


306,433


269,508


13.7

 Accounts and notes receivable, net 


188,611


173,364


8.8

 Inventories, net 


1,763,293


1,651,815


6.7

 Prepaid expenses and other current assets 


42,062


34,908


20.5

 Total current assets 


2,329,186


2,150,587


8.3

 PROPERTY AND EQUIPMENT, net 


1,318,959


1,125,883


17.1

 GOODWILL AND INTANGIBLE FRANCHISE RIGHTS 


1,198,666


1,161,639


3.2

 OTHER ASSETS 


24,254


23,794


1.9

 Total assets 


$ 4,871,065


$     4,461,903


9.2








 LIABILITIES AND STOCKHOLDERS' EQUITY: 







 CURRENT LIABILITIES: 







 Floorplan notes payable - credit facility and other 


$ 1,240,695


$     1,136,654


9.2

 Offset account related to floorplan notes payable - credit facility 


(86,547)


(59,626)


45.1

 Floorplan notes payable - manufacturer affiliates 


397,183


392,661


1.2

 Offset account related to floorplan notes payable - manufacturer affiliates 


(22,500)


(25,500)


(11.8)

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


77,609


72,419


7.2

 Current liabilities from interest rate risk management activities 


1,996


3,941


(49.4)

 Accounts payable 


412,981


356,099


16.0

 Accrued expenses 


177,070


176,469


0.3

 Total current liabilities 


2,198,487


2,053,117


7.1

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


542,063


540,465


0.3

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


296,151


295,591


0.2

 ACQUISITION LINE 


26,988



100.0

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


405,950


333,326


21.8

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


47,032


43,427


8.3

 DEFERRED INCOME TAXES 


124,404


161,502


(23.0)

 LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES 


8,583


20,470


(58.1)

 OTHER LIABILITIES 


97,125


83,805


15.9

 STOCKHOLDERS' EQUITY: 







 Common stock 


255


257


(0.8)

 Additional paid-in capital 


291,461


290,899


0.2

 Retained earnings 


1,246,323


1,053,301


18.3

 Accumulated other comprehensive loss 


(123,226)


(146,944)


(16.1)

 Treasury stock 


(290,531)


(267,313)


8.7

 Total stockholders' equity 


$ 1,124,282


$        930,200


20.9

 Total liabilities and stockholders' equity 


$ 4,871,065


$     4,461,903


9.2

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)














Three Months Ended


Twelve Months Ended




December 31,


December 31,




2017 (%)


2016 (%)


2017 (%)


2016 (%)

NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:








Region

Geographic Market










Texas


39.2


37.1


37.0


36.5


California


7.3


8.6


7.5


9.1


Oklahoma


6.0


6.4


6.1


6.8


Georgia


4.6


4.5


4.6


4.3

United States

Massachusetts


4.5


4.6


4.6


4.8


Florida


2.9


2.8


2.6


2.6


New Hampshire


1.9


2.0


2.0


1.9


Louisiana


1.8


2.0


1.9


2.1


New Jersey


1.6


1.7


1.7


1.6


South Carolina


1.6


1.6


1.4


1.4


Kansas


1.4


1.7


1.6


1.8


Mississippi


1.1


1.3


1.3


1.5


Alabama


0.8


0.9


1.0


0.9


Maryland


0.4


0.5


0.4


0.5


New Mexico 


0.1



0.1





75.2


75.7


73.8


75.8











International

United Kingdom


19.5


18.7


21.3


18.4


Brazil


5.3


5.6


4.9


5.8




100.0


100.0


100.0


100.0











NEW VEHICLE UNIT SALES BRAND MIX:









Toyota/Scion/Lexus


25.4


25.8


25.3


24.9

Volkswagen/Audi/Porsche


13.2


11.2


13.0


11.0

BMW/MINI


12.4


14.4


12.7


13.5

Ford/Lincoln


11.4


10.8


11.5


11.0

Honda/Acura


9.2


8.8


9.2


9.9

Nissan


7.0


7.5


7.4


7.1

Chevrolet/GMC/Buick/Cadillac


6.3


7.0


6.2


7.4

Mercedes-Benz/smart/Sprinter


4.4


4.8


4.0


4.3

Chrysler/Dodge/Jeep/RAM


3.9


3.6


3.9


4.0

Hyundai/Kia


3.8


3.6


3.9


4.2

Other


3.0


2.5


2.9


2.7




100.0


100.0


100.0


100.0

 

Group 1 Automotive, Inc.

Additional Information - U.S.

(Unaudited)

(Dollars in thousands, except per unit amounts)










Three Months Ended December 31,



2017


2016


% Increase/

(Decrease)

REVENUES:







New vehicle retail sales


$ 1,310,577


$ 1,207,922


8.5

Used vehicle retail sales


540,528


532,913


1.4

Used vehicle wholesale sales


50,284


70,954


(29.1)

Total used


590,812


603,867


(2.2)

Parts and service


286,608


266,033


7.7

Finance, insurance and other, net


99,200


93,112


6.5

Total


$ 2,287,197


$ 2,170,934


5.4








GROSS MARGIN %:







New vehicle retail sales


5.3


5.4



Used vehicle retail sales


5.9


6.2



Used vehicle wholesale sales


(4.5)


(3.9)



Total used


5.0


5.0



Parts and service


53.2


53.8



Finance, insurance and other, net


100.0


100.0



Total


15.3


15.3










GROSS PROFIT:







New vehicle retail sales


$      69,455


$      65,101


6.7

Used vehicle retail sales


31,931


32,877


(2.9)

Used vehicle wholesale sales


(2,257)


(2,796)


19.3

Total used


29,674


30,081


(1.4)

Parts and service


152,349


143,023


6.5

Finance, insurance and other, net


99,200


93,112


6.5

Total 


$    350,678


$    331,317


5.8








UNITS SOLD:







Retail new vehicles sold


33,608


31,779


5.8

Retail used vehicles sold


24,735


24,866


(0.5)

Wholesale used vehicles sold


8,194


10,115


(19.0)

Total used


32,929


34,981


(5.9)








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$      38,996


$      38,010


2.6

Used vehicle retail


$      21,853


$      21,431


2.0








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$        2,067


$        2,049


0.9

Used vehicle retail sales


1,291


1,322


(2.3)

Used vehicle wholesale sales


(275)


(276)


0.4

Total used


901


860


4.8

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


$        1,700


$        1,644


3.4








OTHER: 







SG&A expenses


$    242,070


$    227,411


6.4

Adjusted SG&A expenses (1)


$    242,070


$    238,227


1.6

SG&A as % revenues


10.6


10.5



Adjusted SG&A as % revenues (1)


10.6


11.0



SG&A as % gross profit


69.0


68.6



Adjusted SG&A as % gross profit (1)


69.0


71.9



Operating margin %


4.1


3.8



Adjusted operating margin % (1)


4.2


3.8



Pretax margin %


2.8


2.7



Adjusted pretax margin % (1)


2.9


2.6










INTEREST EXPENSE:







Floorplan interest expense


$    (12,267)


$    (10,015)


22.5

Floorplan assistance


12,952


12,201


6.2

Net floorplan income


$           685


$        2,186


(68.7)

Other interest expense, net


$    (16,922)


$    (15,740)


7.5










Twelve Months Ended December 31,



2017


2016


% Increase/

(Decrease)

REVENUES:







New vehicle retail sales


$ 4,768,864


$ 4,766,047


0.1

Used vehicle retail sales


2,160,699


2,242,508


(3.6)

Used vehicle wholesale sales


250,668


276,710


(9.4)

Total used


2,411,367


2,519,218


(4.3)

Parts and service


1,124,380


1,071,651


4.9

Finance, insurance and other, net


375,954


377,756


(0.5)

Total 


$ 8,680,565


$ 8,734,672


(0.6)








GROSS MARGIN %:







New vehicle retail sales


5.1


5.1



Used vehicle retail sales


6.7


6.9



Used vehicle wholesale sales


(1.0)


(1.2)



Total used


5.9


6.0



Parts and service


53.6


54.4



Finance, insurance and other, net


100.0


100.0



Total


15.7


15.5










GROSS PROFIT:







New vehicle retail sales


$    244,286


$    242,773


0.6

Used vehicle retail sales


144,529


155,709


(7.2)

Used vehicle wholesale sales


(2,427)


(3,439)


29.4

Total used


142,102


152,270


(6.7)

Parts and service


602,972


582,550


3.5

Finance, insurance and other, net


375,954


377,756


(0.5)

Total 


$ 1,365,314


$ 1,355,349


0.7








UNITS SOLD:







Retail new vehicles sold


127,141


130,471


(2.6)

Retail used vehicles sold


101,170


105,754


(4.3)

Wholesale used vehicles sold


37,662


41,009


(8.2)

Total used


138,832


146,763


(5.4)








AVERAGE RETAIL SALES PRICE:







New vehicle retail sales


$      37,508


$      36,530


2.7

Used vehicle retail sales


$      21,357


$      21,205


0.7








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$        1,921


$        1,861


3.2

Used vehicle retail sales


$        1,429


$        1,472


(2.9)

Used vehicle wholesale sales


(64)


(84)


23.8

Total used


$        1,024


$        1,038


(1.3)

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


$        1,647


$        1,599


3.0








OTHER: 







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


$    382,504


$    377,756


1.3

Adjusted Total Revenue (1) 


$ 8,687,115


$ 8,734,672


(0.5)

Adjusted Total Gross Profit (1) 


$ 1,371,864


$ 1,355,349


1.2

Adjusted Total Gross Margin (1) 


15.8


15.5



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


$        1,675


$        1,599


4.8

SG&A expenses


$    983,974


$    965,139


2.0

Adjusted SG&A expenses (1)


$    975,497


$    971,908


0.4

SG&A as % revenues


11.3


11.0



Adjusted SG&A as % revenues (1)


11.2


11.1



SG&A as % gross profit


72.1


71.2



Adjusted SG&A as % gross profit (1)


71.1


71.7



Operating margin %


3.7


3.7



Adjusted operating margin % (1)


4.0


3.9



Pretax margin %


2.4


2.5



Adjusted pretax margin % (1)


2.7


2.7










INTEREST EXPENSE:







Floorplan interest expense


$    (47,221)


$    (40,444)


16.8

Floorplan assistance


47,984


48,377


(0.8)

Net floorplan income


$           763


$        7,933


(90.4)

Other interest expense, net


$    (66,493)


$    (62,320)


6.7










(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.

(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 December 31,



2017


2016


% Increase/

(Decrease)


Constant Currency (1)

% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$       267,785


$       222,831


20.2


12.5

Used vehicle retail sales


144,415


94,403


53.0


43.3

Used vehicle wholesale sales


37,243


27,762


34.2


25.7

Total used


181,658


122,165


48.7


39.3

Parts and service


45,141


33,182


36.0


27.5

Finance, insurance and other, net


13,263


9,314


42.4


33.2

Total


$       507,847


$       387,492


31.1


22.8










GROSS MARGIN %:









New vehicle retail sales


5.7


6.0





Used vehicle retail sales


4.6


4.8





Used vehicle wholesale sales


(0.9)


(4.4)





Total used


3.5


2.7





Parts and service


56.6


55.8





Finance, insurance and other, net


100.0


100.0





Total


11.9


11.5














GROSS PROFIT:









New vehicle retail sales


$         15,231


$         13,308


14.4


7.1

Used vehicle retail sales


6,696


4,497


48.9


39.5

Used vehicle wholesale sales


(322)


(1,235)


73.9


75.4

Total used


6,374


3,262


95.4


83.1

Parts and service


25,559


18,532


37.9


29.2

Finance, insurance and other, net


13,263


9,314


42.4


33.2

Total 


$         60,427


$         44,416


36.0


27.4










UNITS SOLD:









Retail new vehicles sold


8,750


7,880


11.0



Retail used vehicles sold


6,188


4,429


39.7



Wholesale used vehicles sold


5,089


3,780


34.6



Total used


11,277


8,209


37.4












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$         30,604


$         28,278


8.2


1.4

Used vehicle retail


$         23,338


$         21,315


9.5


2.5










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$           1,741


$           1,689


3.1


(3.6)

Used vehicle retail sales


1,082


1,015


6.6


(0.1)

Used vehicle wholesale sales


(63)


(327)


80.7


81.7

Total used


565


397


42.3


33.3

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


$              888


$              757


17.3


9.7










OTHER: 









SG&A expenses


$         54,095


$         39,482


37.0


28.3

Adjusted SG&A expenses(1)


$         54,095


$         39,137


38.2


29.4

SG&A as % revenues


10.7


10.2





Adjusted SG&A as % revenues (1)


10.7


10.1





SG&A as % gross profit


89.5


88.9





Adjusted SG&A as % gross profit (1)


89.5


88.1





Operating margin %


0.8


0.8





Adjusted operating margin % (1)


0.8


0.9





Pretax margin %


0.3


0.2





Adjusted pretax margin % (1)


0.3


0.3














INTEREST EXPENSE:









Floorplan interest expense


$         (1,304)


$         (1,085)


20.2


12.5

Floorplan assistance


237


182


30.2


22.1

Net floorplan expense


$         (1,067)


$            (903)


18.2


10.6

Other interest expense, net


$         (1,278)


$         (1,231)


3.8


(2.8)





















Twelve Months Ended December 31,



2017


2016


% Increase/

(Decrease)


Constant Currency (1)

% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$    1,092,612


$       987,538


10.6


16.0

Used vehicle retail sales


546,266


434,203


25.8


32.3

Used vehicle wholesale sales


136,847


121,747


12.4


18.1

Total used


683,113


555,950


22.9


29.2

Parts and service


165,755


143,362


15.6


21.3

Finance, insurance and other, net


44,523


36,305


22.6


27.9

Total 


$    1,986,003


$    1,723,155


15.3


20.9










GROSS MARGIN %:









New vehicle retail sales


5.5


5.7





Used vehicle retail sales


4.8


5.0





Used vehicle wholesale sales


(0.9)


(1.0)





Total used


3.7


3.7





Parts and service


57.3


55.4





Finance, insurance and other, net


100.0


100.0





Total


11.3


11.2














GROSS PROFIT:









New vehicle retail sales


$         60,581


$         56,655


6.9


11.9

Used vehicle retail sales


26,275


21,826


20.4


26.9

Used vehicle wholesale sales


(1,173)


(1,181)


0.7


7.8

Total used


25,102


20,645


21.6


28.9

Parts and service


95,047


79,377


19.7


25.6

Finance, insurance and other, net


44,523


36,305


22.6


27.9

Total 


$       225,253


$       192,982


16.7


22.4










UNITS SOLD:









Retail new vehicles sold


36,571


31,574


15.8



Retail used vehicles sold


24,623


18,830


30.8



Wholesale used vehicles sold


18,334


15,108


21.4



Total used


42,957


33,938


26.6












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$         29,876


$         31,277


(4.5)


0.1

Used vehicle retail


$         22,185


$         23,059


(3.8)


1.1










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$           1,657


$           1,794


(7.6)


(3.4)

Used vehicle retail sales


1,067


1,159


(7.9)


(2.9)

Used vehicle wholesale sales


(64)


(78)


17.9


24.0

Total used


584


608


(3.9)


1.9

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


$              728


$              720


1.1


5.3










OTHER: 









SG&A expenses


$       191,570


$       158,636


20.8


26.3

Adjusted SG&A expenses(1)


$       191,282


$       157,730


21.3


26.8

SG&A as % revenues


9.6


9.2





Adjusted SG&A as % revenues (1)


9.6


9.2





SG&A as % gross profit


85.0


82.2





Adjusted SG&A as % gross profit (1)


84.9


81.7





Operating margin %


1.3


1.6





Adjusted operating margin % (1)


1.3


1.7





Pretax margin %


0.9


1.1





Adjusted pretax margin % (1)


0.9


1.1














INTEREST EXPENSE:









Floorplan interest expense


$         (4,727)


$         (4,222)


12.0


16.8

Floorplan assistance


951


825


15.3


22.1

Net floorplan expense


$         (3,776)


$         (3,397)


11.2


15.6

Other interest expense, net


$         (3,664)


$         (5,197)


(29.5)


(26.5)












(1)

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

 

Group 1 Automotive, Inc.

Additional Information - Brazil

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended December 31,



2017


2016


% Increase/

(Decrease)


Constant Currency (1)

% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$   82,947


$   76,760


8.1


6.2

Used vehicle retail sales


24,129


23,828


1.3


(0.4)

Used vehicle wholesale sales


4,282


1,058


304.7


296.6

Total used


28,411


24,886


14.2


12.2

Parts and service


11,761


11,751


0.1


(1.5)

Finance, insurance and other, net


2,242


1,809


23.9


22.0

Total


$ 125,361


$ 115,206


8.8


7.0










GROSS MARGIN %:









New vehicle retail sales


5.8


6.1





Used vehicle retail sales


7.8


7.0





Used vehicle wholesale sales


4.4


4.8





Total used


7.3


6.9





Parts and service


45.9


44.7





Finance, insurance and other, net


100.0


100.0





Total


11.6


11.7














GROSS PROFIT:









New vehicle retail sales


$     4,849


$     4,659


4.1


2.5

Used vehicle retail sales


1,887


1,672


12.9


11.1

Used vehicle wholesale sales


189


51


270.6


264.3

Total used


2,076


1,723


20.5


18.6

Parts and service


5,403


5,257


2.8


1.0

Finance, insurance and other, net


2,242


1,809


23.9


22.0

Total 


$   14,570


$   13,448


8.3


6.6










UNITS SOLD:









Retail new vehicles sold


2,355


2,372


(0.7)



Retail used vehicles sold


1,092


1,082


0.9



Wholesale used vehicles sold


290


367


(21.0)



Total used


1,382


1,449


(4.6)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$   35,222


$   32,361


8.8


7.0

Used vehicle retail


$   22,096


$   22,022


0.3


(1.3)










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$     2,059


$     1,964


4.8


3.3

Used vehicle retail sales


1,728


1,545


11.8


10.1

Used vehicle wholesale sales


652


139


369.1


361.1

Total used


1,502


1,189


26.3


24.4

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


$        650


$        524


24.0


22.3










OTHER: 









SG&A expenses


$   13,356


$   12,178


9.7


8.1

Adjusted SG&A expenses(1)


$   12,881


$   12,178


5.8


4.2

SG&A as % revenues


10.7


10.6





Adjusted SG&A as % revenues (1)


10.3


10.6





SG&A as % gross profit


91.7


90.6





Adjusted SG&A as % gross profit (1)


88.4


90.6





Operating margin %


(4.7)


(8.2)





Adjusted operating margin % (1)


1.1


0.8





Pretax margin %


(4.9)


(8.5)





Adjusted pretax margin % (1)


0.9


0.5














INTEREST EXPENSE:









Floorplan interest expense


$      (142)


$        (89)


59.6


54.4

Floorplan assistance




-


-

Net floorplan expense


$      (142)


$        (89)


59.6


54.4

Other interest expense, net


$      (109)


$      (237)


(54.0)


(54.4)





















Twelve Months Ended December 31,



2017


2016


% Increase/

(Decrease)


Constant Currency (1)

% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$ 296,055


$ 292,490


1.2


(6.7)

Used vehicle retail sales


92,021


81,002


13.6


4.4

Used vehicle wholesale sales


12,655


3,406


271.6


243.3

Total used


104,676


84,408


24.0


14.1

Parts and service


47,897


46,294


3.5


(4.8)

Finance, insurance and other, net


8,525


6,593


29.3


19.3

Total 


$ 457,153


$ 429,785


6.4


(2.0)










GROSS MARGIN %:









New vehicle retail sales


5.8


5.8





Used vehicle retail sales


7.3


6.1





Used vehicle wholesale sales


6.8


5.2





Total used


7.3


6.1





Parts and service


45.2


39.0





Finance, insurance and other, net


100.0


100.0





Total


12.0


10.9














GROSS PROFIT:









New vehicle retail sales


$   17,138


$   16,950


1.1


(6.7)

Used vehicle retail sales


6,751


4,944


36.5


28.4

Used vehicle wholesale sales


858


178


382.0


346.9

Total used


7,609


5,122


48.6


39.4

Parts and service


21,670


18,073


19.9


10.4

Finance, insurance and other, net


8,525


6,593


29.3


19.3

Total 


$   54,942


$   46,738


17.6


8.6










UNITS SOLD:









Retail new vehicles sold


8,488


10,008


(15.2)



Retail used vehicles sold


4,140


4,547


(9.0)



Wholesale used vehicles sold


1,148


1,222


(6.1)



Total used


5,288


5,769


(8.3)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$   34,879


$   29,226


19.3


10.1

Used vehicle retail


$   22,227


$   17,814


24.8


14.7










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$     2,019


$     1,694


19.2


10.0

Used vehicle retail sales


1,631


1,087


50.0


41.0

Used vehicle wholesale sales


747


146


411.6


375.8

Total used


1,439


888


62.0


52.1

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


$        675


$        453


49.0


37.5










OTHER: 









SG&A expenses


$   50,651


$   46,988


7.8


(0.7)

Adjusted SG&A expenses(1)


$   50,176


$   46,342


8.3


(0.2)

SG&A as % revenues


11.1


10.9





Adjusted SG&A as % revenues (1)


11.0


10.8





SG&A as % gross profit


92.2


100.5





Adjusted SG&A as % gross profit (1)


91.3


99.2





Operating margin %


(0.9)


(2.9)





Adjusted operating margin % (1)


0.7


(0.2)





Pretax margin %


(1.0)


(3.0)





Adjusted pretax margin % (1)


0.6


(0.3)














INTEREST EXPENSE:









Floorplan interest expense


$      (424)


$      (261)


62.5


51.4

Floorplan assistance




-


-

Net floorplan expense


$      (424)


$      (261)


62.5


51.4

Other interest expense, net


$      (340)


$      (418)


(18.7)


(25.0)












(1)

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

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended December 31,



2017


2016


% Increase/

(Decrease)


Constant Currency % (1)

Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$   1,661,309


$   1,507,513


10.2


9.0

Used vehicle retail sales


709,072


651,144


8.9


7.4

Used vehicle wholesale sales


91,809


99,774


(8.0)


(10.4)

Total used


800,881


750,918


6.7


5.1

Parts and service


343,510


310,966


10.5


9.5

Finance, insurance and other, net


114,705


104,235


10.0


9.2

Total


$   2,920,405


$   2,673,632


9.2


7.9










GROSS MARGIN %:









New vehicle retail sales


5.4


5.5





Used vehicle retail sales


5.7


6.0





Used vehicle wholesale sales


(2.6)


(4.0)





Total used


4.8


4.7





Parts and service


53.4


53.6





Finance, insurance and other, net


100.0


100.0





Total


14.6


14.6














GROSS PROFIT:









New vehicle retail sales


$        89,535


$        83,068


7.8


6.5

Used vehicle retail sales


40,514


39,046


3.8


2.6

Used vehicle wholesale sales


(2,390)


(3,980)


39.9


40.4

Total used


38,124


35,066


8.7


7.5

Parts and service


183,311


166,812


9.9


8.9

Finance, insurance and other, net


114,705


104,235


10.0


9.2

Total 


$      425,675


$      389,181


9.4


8.3










UNITS SOLD:









Retail new vehicles sold


44,713


42,031


6.4



Retail used vehicles sold


32,015


30,377


5.4



Wholesale used vehicles sold


13,573


14,262


(4.8)



Total used


45,588


44,639


2.1












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$        37,155


$        35,867


3.6


2.4

Used vehicle retail


$        22,148


$        21,435


3.3


1.9










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$          2,002


$          1,976


1.3


0.1

Used vehicle retail sales


1,265


1,285


(1.6)


(2.6)

Used vehicle wholesale sales


(176)


(279)


36.9


37.3

Total used


836


786


6.4


5.2

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


$          1,495


$          1,440


3.8


3.0










OTHER: 









SG&A expenses


$      309,521


$      279,071


10.9


9.6

Adjusted SG&A expenses (1)


$      309,046


$      289,542


6.7


5.5

SG&A as % revenues


10.6


10.4





Adjusted SG&A as % revenues (1)


10.6


10.8





SG&A as % gross profit


72.7


71.7





Adjusted SG&A as % gross profit (1)


72.6


74.4





Operating margin %


3.1


2.9





Adjusted operating margin % (1)


3.5


3.2





Pretax margin %


2.0


1.8





Adjusted pretax margin % (1)


2.4


2.2














INTEREST EXPENSE:









Floorplan interest expense


$      (13,713)


$      (11,189)


22.6


21.8

Floorplan assistance


13,189


12,383


6.5


6.4

Net floorplan (expense) income


$           (524)


$          1,194


(143.9)


(137.7)

Other interest expense, net


$      (18,309)


$      (17,208)


6.4


5.9





















Twelve Months Ended December 31,



2017


2016


% Increase/ (Decrease)


Constant Currency %(1)

Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$   6,157,531


$   6,046,075


1.8


2.3

Used vehicle retail sales


2,798,986


2,757,713


1.5


2.2

Used vehicle wholesale sales


400,170


3,159,576


(0.4)


1.1

Total used


3,199,156


3,159,576


1.3


2.1

Parts and service


1,338,032


1,261,307


6.1


6.4

Finance, insurance and other, net


429,002


420,654


2.0


2.3

Total 


$ 11,123,721


$ 10,887,612


2.2


2.7










GROSS MARGIN %:









New vehicle retail sales


5.2


5.2





Used vehicle retail sales


6.3


6.6





Used vehicle wholesale sales


(0.7)


(1.1)





Total used


5.5


5.6





Parts and service


53.8


53.9





Finance, insurance and other, net


100.0


100.0





Total


14.8


14.7














GROSS PROFIT:









New vehicle retail sales


$      322,005


$      316,378


1.8


2.2

Used vehicle retail sales


177,555


182,479


(2.7)


(2.1)

Used vehicle wholesale sales


(2,742)


(4,442)


38.3


38.8

Total used


174,813


178,037


(1.8)


(1.2)

Parts and service


719,689


680,000


5.8


6.3

Finance, insurance and other, net


429,002


420,654


2.0


2.3

Total 


$   1,645,509


$   1,595,069


3.2


3.6










UNITS SOLD:









Retail new vehicles sold


172,200


172,053


0.1



Retail used vehicles sold


129,933


129,131


0.6



Wholesale used vehicles sold


57,144


57,339


(0.3)



Total used


187,077


186,470


0.3












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$        35,758


$        35,141


1.8


2.2

Used vehicle retail


$        21,542


$        21,356


0.9


1.6










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$          1,870


$          1,839


1.7


2.2

Used vehicle retail sales


1,367


1,413


(3.3)


(2.7)

Used vehicle wholesale sales


(48)


(77)


37.7


38.5

Total used


934


955


(2.2)


(1.5)

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


$          1,420


$          1,397


1.6


2.0










OTHER: 









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


$      435,552


$      420,654


3.5


3.8

Adjusted Total Revenue (1) 


$ 11,130,271


$ 10,887,612


2.2


2.8

Adjusted Total Gross Profit (1) 


$   1,652,059


$   1,595,069


3.6


4.0

Adjusted Total Gross Margin (1) 


14.8


14.7





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


$          1,442


$          1,397


3.2


3.5

SG&A expenses


$   1,226,195


$   1,170,763


4.7


5.1

Adjusted SG&A expenses (1)


$   1,216,955


$   1,175,980


3.5


3.9

SG&A as % revenues


11.0


10.8





Adjusted SG&A as % revenues (1)


10.9


10.8





SG&A as % gross profit


74.5


73.4





Adjusted SG&A as % gross profit (1)


73.7


73.7





Operating margin %


3.1


3.1





Adjusted operating margin % (1)


3.4


3.4




17.0

Pretax margin %


2.0


2.1




(0.4)

Adjusted pretax margin % (1)


2.3


2.3




(183.3)









4.0

INTEREST EXPENSE:









Floorplan interest expense


$      (52,372)


$      (44,927)


16.6


17.0

Floorplan assistance


48,935


49,202


(0.5)


(0.4)

Net floorplan (expense) income 


$        (3,437)


$          4,275


(180.4)


(183.3)

Other interest expense, net


$      (70,497)


$      (67,936)


3.8


4.0












(1)

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

(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 December 31,



2017


2016


% Increase/

(Decrease)

REVENUES:







New vehicle retail sales


$ 1,290,879


$ 1,207,538


6.9

Used vehicle retail sales


532,189


532,880


(0.1)

Used vehicle wholesale sales


49,602


70,621


(29.8)

Total used


581,791


603,501


(3.6)

Parts and service


283,561


266,011


6.6

Finance, insurance and other, net


97,536


92,661


5.3

Total 


$ 2,253,767


$ 2,169,711


3.9








GROSS MARGIN %:







New vehicle retail sales


5.3


5.4



Used vehicle retail sales


5.9


6.2



Used vehicle wholesale sales


(4.5)


(3.9)



Total used


5.0


5.0



Parts and service


53.1


53.8



Finance, insurance and other, net


100.0


100.0



Total


15.3


15.2










GROSS PROFIT:







New vehicle retail sales


$      68,391


$      64,974


5.3

Used vehicle retail sales


31,474


32,871


(4.2)

Used vehicle wholesale sales


(2,222)


(2,750)


19.2

Total used


29,252


30,121


(2.9)

Parts and service


150,672


143,046


5.3

Finance, insurance and other, net


97,536


92,661


5.3

Total 


$    345,851


$    330,802


4.5








UNITS SOLD:







Retail new vehicles sold


33,157


31,765


4.4

Retail used vehicles sold


24,386


24,864


(1.9)

Wholesale used vehicles sold


8,100


10,090


(19.7)

Total used


32,486


34,954


(7.1)








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$      38,932


$      38,015


2.4

Used vehicle retail


$      21,824


$      21,432


1.8








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$        2,063


$        2,045


0.9

Used vehicle retail sales


1,291


1,322


(2.3)

Used vehicle wholesale sales


(274)


(273)


(0.4)

Total used


900


862


4.4

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


$        1,695


$        1,636


3.6








OTHER: 







SG&A expenses


$    238,151


$    229,946


3.6

Adjusted SG&A expenses(2)


$    238,151


$    237,973


0.1

SG&A as % revenues


10.6


10.6



Adjusted SG&A as % revenues (2)


10.6


11.0



SG&A as % gross profit


68.9


69.5



Adjusted SG&A as % gross profit (2)


68.9


71.9



Operating margin %


4.1


3.7



Adjusted operating margin % (2)


4.2


3.8












Twelve Months Ended December 31,



2017


2016


% Increase/

(Decrease)

REVENUES:







New vehicle retail sales


$ 4,732,177


$ 4,713,124


0.4

Used vehicle retail sales


2,146,803


2,217,717


(3.2)

Used vehicle wholesale sales


248,922


272,623


(8.7)

Total used


2,395,725


2,490,340


(3.8)

Parts and service


1,118,749


1,062,465


5.3

Finance, insurance and other, net


372,001


372,581


(0.2)

Total 


$ 8,618,652


$ 8,638,510


(0.2)








GROSS MARGIN %:







New vehicle retail sales


5.1


5.1



Used vehicle retail sales


6.7


6.9



Used vehicle wholesale sales


(1.0)


(1.1)



Total used


5.9


6.1



Parts and service


53.6


54.3



Finance, insurance and other, net


100.0


100.0



Total


15.7


15.5










GROSS PROFIT:







New vehicle retail sales


$    242,301


$    240,528


0.7

Used vehicle retail sales


143,688


153,911


(6.6)

Used vehicle wholesale sales


(2,452)


(2,964)


17.3

Total used


141,236


150,947


(6.4)

Parts and service


599,933


576,925


4.0

Finance, insurance and other, net


372,001


372,581


(0.2)

Total 


$ 1,355,471


$ 1,340,981


1.1








UNITS SOLD:







Retail new vehicles sold


126,247


128,441


(1.7)

Retail used vehicles sold


100,542


104,451


(3.7)

Wholesale used vehicles sold


37,415


40,361


(7.3)

Total used


137,957


144,812


(4.7)








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$      37,483


$      36,695


2.1

Used vehicle retail


$      21,352


$      21,232


0.6








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$        1,919


$        1,873


2.5

Used vehicle retail sales


1,429


1,474


(3.1)

Used vehicle wholesale sales


(66)


(73)


9.6

Total used


1,024


1,042


(1.7)

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


$        1,640


$        1,600


2.5








OTHER: 







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


$    378,551


$    372,581


1.6

Adjusted Total Revenue (2) 


$ 8,625,202


$ 8,638,510


(0.2)

Adjusted Total Gross Profit (2)


$ 1,362,021


$ 1,340,981


1.6

Adjusted Total Gross Margin (2)


15.8


15.5



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


$        1,669


$        1,600


4.3

SG&A expenses


$    975,701


$    955,108


2.2

Adjusted SG&A expenses (2)


$    967,224


$    956,848


1.1

SG&A as % revenues


11.3


11.1



Adjusted SG&A as % revenues (2)


11.2


11.1



SG&A as % gross profit


72.0


71.2



Adjusted SG&A as % gross profit (2)


71.0


71.4



Operating margin %


3.7


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 profit 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 December 31,



2017


2016


% Increase/

(Decrease)


Constant Currency (2)

% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$    224,123


$    221,036


1.4


(5.0)

Used vehicle retail sales


111,186


93,314


19.2


11.6

Used vehicle wholesale sales


28,518


27,158


5.0


(1.6)

Total used


139,704


120,472


16.0


8.6

Parts and service


36,664


32,768


11.9


4.8

Finance, insurance and other, net


11,264


9,245


21.8


13.9

Total 


$    411,755


$    383,521


7.4


0.5










GROSS MARGIN %:









New vehicle retail sales


5.7


6.0





Used vehicle retail sales


4.6


4.7





Used vehicle wholesale sales


(1.2)


(4.5)





Total used


3.4


2.7





Parts and service


56.2


55.9





Finance, insurance and other, net


100.0


100.0





Total


12.0


11.5














GROSS PROFIT:









New vehicle retail sales


$      12,773


$      13,217


(3.4)


(9.6)

Used vehicle retail sales


5,099


4,424


15.3


8.0

Used vehicle wholesale sales


(336)


(1,215)


72.3


73.9

Total used


4,763


3,209


48.4


39.0

Parts and service


20,610


18,332


12.4


5.3

Finance, insurance and other, net


11,264


9,245


21.8


13.9

Total 


$      49,410


$      44,003


12.3


5.1










UNITS SOLD:









Retail new vehicles sold


7,201


7,763


(7.2)



Retail used vehicles sold


4,617


4,344


6.3



Wholesale used vehicles sold


3,822


3,625


5.4



Total used


8,439


7,969


5.9












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$      31,124


$      28,473


9.3


2.4

Used vehicle retail


$      24,082


$      21,481


12.1


5.0










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$        1,774


$        1,703


4.2


(2.6)

Used vehicle retail sales


1,104


1,018


8.4


1.6

Used vehicle wholesale sales


(88)


(335)


73.7


75.2

Total used


564


403


40.0


31.2

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


$           953


$           764


24.7


16.7










OTHER: 









SG&A expenses


$      43,033


$      38,468


11.9


4.7

Adjusted SG&A expenses(2)


$      43,033


$      38,285


12.4


5.2

SG&A as % revenues


10.5


10.0





Adjusted SG&A as % revenues (2)


10.5


10.0





SG&A as % gross profit


87.1


87.4





Adjusted SG&A as % gross profit (2)


87.1


87.0





Operating margin %


1.1


1.0





Adjusted operating margin % (2)


1.1


1.1
















Twelve Months Ended December 31,



2017


2016


% Increase/ (Decrease)


Constant Currency (2)

% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$    943,182


$    967,424


(2.5)


2.2

Used vehicle retail sales


447,777


419,455


6.8


12.2

Used vehicle wholesale sales


113,082


116,519


(2.9)


1.9

Total used


560,859


535,974


4.6


10.0

Parts and service


138,143


137,800


0.2


5.0

Finance, insurance and other, net


37,762


35,582


6.1


10.7

Total 


$ 1,679,946


$ 1,676,780


0.2


5.1










GROSS MARGIN %:









New vehicle retail sales


5.6


5.8





Used vehicle retail sales


4.9


5.1





Used vehicle wholesale sales


(0.7)


(1.0)





Total used


3.8


3.8





Parts and service


57.2


55.3





Finance, insurance and other, net


100.0


100.0





Total


11.4


11.2














GROSS PROFIT:









New vehicle retail sales


$      52,962


$      55,921


(5.3)


(0.8)

Used vehicle retail sales


22,147


21,350


3.7


9.6

Used vehicle wholesale sales


(831)


(1,122)


25.9


33.2

Total used


21,316


20,228


5.4


12.0

Parts and service


79,083


76,235


3.7


8.6

Finance, insurance and other, net


37,762


35,582


6.1


10.7

Total 


$    191,123


$    187,966


1.7


6.6










UNITS SOLD:









Retail new vehicles sold


31,054


30,719


1.1



Retail used vehicles sold


19,632


18,062


8.7



Wholesale used vehicles sold


14,861


14,428


3.0



Total used


34,493


32,490


6.2












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$      30,372


$      31,493


(3.6)


1.1

Used vehicle retail


$      22,809


$      23,223


(1.8)


3.3










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$        1,705


$        1,820


(6.3)


(1.9)

Used vehicle retail sales


1,128


1,182


(4.6)


0.8

Used vehicle wholesale sales


(56)


(78)


28.2


35.2

Total used


618


623


(0.8)


5.5

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


$           745


$           729


2.2


6.5










OTHER: 









SG&A expenses


$    156,369


$    150,626


3.8


8.4

Adjusted SG&A expenses(2)


$    156,081


$    149,882


4.1


8.7

SG&A as % revenues


9.3


9.0





Adjusted SG&A as % revenues (2)


9.3


8.9





SG&A as % gross profit


81.8


80.1





Adjusted SG&A as % gross profit (2)


81.7


79.7





Operating margin %


1.7


1.8





Adjusted operating margin % (2)


1.7


1.9
















(1)

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

(2)

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

 

Group 1 Automotive, Inc.

Additional Information - Same Store Brazil (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended December 31,



2017


2016


% Increase/

(Decrease)


Constant Currency (2)

% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$   82,548


$   70,759


16.7


14.7

Used vehicle retail sales


22,173


21,755


1.9


0.2

Used vehicle wholesale sales


3,897


1,058


268.3


260.5

Total used


26,070


22,813


14.3


12.2

Parts and service


11,650


10,617


9.7


8.0

Finance, insurance and other, net


2,230


1,674


33.2


31.1

Total 


$ 122,498


$ 105,863


15.7


13.8










GROSS MARGIN %:









New vehicle retail sales


5.8


6.0





Used vehicle retail sales


8.0


7.0





Used vehicle wholesale sales


4.8


4.9





Total used


7.5


6.9





Parts and service


46.2


45.2





Finance, insurance and other, net


100.0


100.0





Total


11.7


11.6














GROSS PROFIT:









New vehicle retail sales


$     4,803


$     4,258


12.8


11.1

Used vehicle retail sales


1,780


1,515


17.5


15.6

Used vehicle wholesale sales


186


52


257.7


257.5

Total used


1,966


1,567


25.5


23.5

Parts and service


5,377


4,795


12.1


10.1

Finance, insurance and other, net


2,230


1,674


33.2


31.1

Total 


$   14,376


$   12,294


16.9


15.0










UNITS SOLD:









Retail new vehicles sold


2,334


2,108


10.7



Retail used vehicles sold


1,049


958


9.5



Wholesale used vehicles sold


274


300


(8.7)



Total used


1,323


1,258


5.2












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$   35,368


$   33,567


5.4


3.6

Used vehicle retail


$   21,137


$   22,709


(6.9)


(8.5)










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$     2,058


$     2,020


1.9


0.3

Used vehicle retail sales


1,697


1,581


7.3


5.6

Used vehicle wholesale sales


679


173


292.5


291.5

Total used


1,486


1,246


19.3


17.4

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


$        659


$        546


20.7


18.8










OTHER: 









SG&A expenses


$   13,233


$   11,124


19.0


17.2

Adjusted SG&A expenses(2)


$   12,758


$   11,124


14.7


12.9

SG&A as % revenues


10.8


10.5





Adjusted SG&A as % revenues (2)


10.4


10.5





SG&A as % gross profit


92.0


90.5





Adjusted SG&A as % gross profit (2)


88.7


90.5





Operating margin %


(4.9)


(9.1)





Adjusted operating margin % (2)


1.0


0.8
















Twelve Months Ended December 31,



2017


2016


% Increase/

(Decrease)


Constant Currency (2)

% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$ 287,190


$ 270,923


6.0


(2.2)

Used vehicle retail sales


86,298


72,549


19.0


9.6

Used vehicle wholesale sales


12,144


2,929


314.6


287.3

Total used


98,442


75,478


30.4


20.4

Parts and service


45,944


39,623


16.0


7.2

Finance, insurance and other, net


8,142


5,852


39.1


28.9

Total 


$ 439,718


$ 391,876


12.2


3.6










GROSS MARGIN %:









New vehicle retail sales


5.8


5.8





Used vehicle retail sales


7.5


6.2





Used vehicle wholesale sales


6.9


6.5





Total used


7.4


6.3





Parts and service


45.9


40.7





Finance, insurance and other, net


100.0


100.0





Total


12.1


10.8














GROSS PROFIT:









New vehicle retail sales


$   16,662


$   15,652


6.5


(1.7)

Used vehicle retail sales


6,488


4,533


43.1


34.6

Used vehicle wholesale sales


838


190


341.1


311.2

Total used


7,326


4,723


55.1


45.7

Parts and service


21,100


16,110


31.0


21.1

Finance, insurance and other, net


8,142


5,852


39.1


28.9

Total 


$   53,230


$   42,337


25.7


16.4










UNITS SOLD:









Retail new vehicles sold


8,198


8,798


(6.8)



Retail used vehicles sold


3,974


3,859


3.0



Wholesale used vehicles sold


997


934


6.7



Total used


4,971


4,793


3.7












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$   35,032


$   30,794


13.8


5.0

Used vehicle retail


$   21,716


$   18,800


15.5


6.4










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$     2,032


$     1,779


14.2


5.5

Used vehicle retail sales


1,633


1,175


39.0


30.7

Used vehicle wholesale sales


841


203


314.3


285.3

Total used


1,474


985


49.6


40.5

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


$        669


$        462


44.8


34.0










OTHER: 









SG&A expenses


$   47,926


$   40,315


18.9


10.1

Adjusted SG&A expenses(2)


$   47,451


$   40,041


18.5


9.7

SG&A as % revenues


10.9


10.3





Adjusted SG&A as % revenues (2)


10.8


10.2





SG&A as % gross profit


90.0


95.2





Adjusted SG&A as % gross profit (2)


89.1


94.6





Operating margin %


(0.6)


(2.4)





Adjusted operating margin % (2)


1.0


0.3
















(1)

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

(2)

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

 

Group 1 Automotive, Inc.

Additional Information - Same Store Consolidated (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended December 31,



2017


2016


% Increase/

(Decrease)


Constant Currency (2)

% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$    1,597,550


$    1,499,333


6.6


5.5

Used vehicle retail sales


665,548


647,949


2.7


1.6

Used vehicle wholesale sales


82,017


98,837


(17.0)


(18.9)

Total used


747,565


746,786


0.1


(1.1)

Parts and service


331,875


309,396


7.3


6.5

Finance, insurance and other, net


111,030


103,580


7.2


6.5

Total 


$    2,788,020


$    2,659,095


4.8


3.8










GROSS MARGIN %:









New vehicle retail sales


5.4


5.5





Used vehicle retail sales


5.8


6.0





Used vehicle wholesale sales


(2.9)


(4.0)





Total used


4.8


4.7





Parts and service


53.2


53.7





Finance, insurance and other, net


100.0


100.0





Total


14.7


14.6














GROSS PROFIT:









New vehicle retail sales


$         85,967


$         82,449


4.3


3.2

Used vehicle retail sales


38,353


38,810


(1.2)


(2.1)

Used vehicle wholesale sales


(2,372)


(3,913)


39.4


39.8

Total used


35,981


34,897


3.1


2.1

Parts and service


176,659


166,173


6.3


5.5

Finance, insurance and other, net


111,030


103,580


7.2


6.5

Total 


$       409,637


$       387,099


5.8


4.9










UNITS SOLD:









Retail new vehicles sold


42,692


41,636


2.5



Retail used vehicles sold


30,052


30,166


(0.4)



Wholesale used vehicles sold


12,196


14,015


(13.0)



Total used


42,248


44,181


(4.4)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$         37,420


$         36,010


3.9


2.9

Used vehicle retail


$         22,147


$         21,479


3.1


2.0










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$           2,014


$           1,980


1.7


0.6

Used vehicle retail sales


1,276


1,287


(0.9)


(1.7)

Used vehicle wholesale sales


(194)


(279)


30.5


30.8

Total used


852


790


7.8


6.8

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


$           1,526


$           1,443


5.8


5.1










OTHER: 









SG&A expenses


$       294,417


$       279,538


5.3


4.3

Adjusted SG&A expenses(2)


$       293,942


$       287,382


2.3


1.3

SG&A as % revenues


10.6


10.5





Adjusted SG&A as % revenues (2)


10.5


10.8





SG&A as % gross profit


71.9


72.2





Adjusted SG&A as % gross profit (2)


71.8


74.2





Operating margin %


3.3


2.8





Adjusted operating margin % (2)


3.6


3.3
















Twelve Months Ended December 31,



2017


2016


% Increase/ (Decrease)


Constant Currency (2)     % Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$    5,962,549


$    5,951,471


0.2


0.6

Used vehicle retail sales


2,680,878


2,709,721


(1.1)


(0.5)

Used vehicle wholesale sales


374,148


392,071


(4.6)


(3.3)

Total used


3,055,026


3,101,792


(1.5)


(0.8)

Parts and service


1,302,836


1,239,888


5.1


5.3

Finance, insurance and other, net


417,905


414,015


0.9


1.2

Total 


$  10,738,316


$  10,707,166


0.3


0.7










GROSS MARGIN %:









New vehicle retail sales


5.2


5.2





Used vehicle retail sales


6.4


6.6





Used vehicle wholesale sales


(0.7)


(1.0)





Total used


5.6


5.7





Parts and service


53.7


54.0





Finance, insurance and other, net


100.0


100.0





Total


14.9


14.7














GROSS PROFIT:









New vehicle retail sales


$       311,925


$       312,101


(0.1)


0.3

Used vehicle retail sales


172,323


179,794


(4.2)


(3.7)

Used vehicle wholesale sales


(2,445)


(3,896)


37.2


37.8

Total used


169,878


175,898


(3.4)


(2.9)

Parts and service


700,116


669,270


4.6


4.9

Finance, insurance and other, net


417,905


414,015


0.9


1.2

Total 


$    1,599,824


$    1,571,284


1.8


2.2










UNITS SOLD:









Retail new vehicles sold


165,499


167,958


(1.5)



Retail used vehicles sold


124,148


126,372


(1.8)



Wholesale used vehicles sold


53,273


55,723


(4.4)



Total used


177,421


182,095


(2.6)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$         36,028


$         35,434


1.7


2.1

Used vehicle retail


$         21,594


$         21,442


0.7


1.3










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$           1,885


$           1,858


1.5


1.8

Used vehicle retail sales


1,388


1,423


(2.5)


(1.9)

Used vehicle wholesale sales


(46)


(70)


34.3


34.9

Total used


957


966


(0.9)


(0.4)

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


$           1,443


$           1,407


2.6


2.8










OTHER: 









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


$       424,455


$       414,015


2.5


2.8

Adjusted Total Revenue (2) 


$  10,744,866


$  10,707,166


0.4


0.8

Adjusted Total Gross Profit (2) 


$    1,606,374


$    1,571,284


2.2


2.6

Adjusted Total Gross Margin (2) 


15.0


14.7





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


$           1,465


$           1,407


4.1


4.4

SG&A expenses


$    1,179,996


$    1,146,049


3.0


3.3

Adjusted SG&A expenses(2)


$    1,170,756


$    1,146,770


2.1


2.4

SG&A as % revenues


11.0


10.7





Adjusted SG&A as % revenues (2)


10.9


10.7





SG&A as % gross profit


73.8


72.9





Adjusted SG&A as % gross profit (2)


72.9


73.0





Operating margin %


3.2


3.2





Adjusted operating margin % (2)


3.5


3.5
















(1)

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

(2)

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 profit are the same. 

 

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

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended December 31,



2017


2016


% Increase/

(Decrease)

SG&A RECONCILIATION:







As reported

$    242,070


$    227,411


6.4


  Pre-tax adjustments:







 Gain on real estate and dealership transactions 

-


982




   Severance costs 

-


(1,837)




      Legal settlements (4)

-


11,671




  Adjusted SG&A (1)

$    242,070


$    238,227


1.6

SG&A AS % REVENUES:







Unadjusted

10.6


10.5




Adjusted(1)

10.6


11.0



SG&A AS % GROSS PROFIT:







Unadjusted

69.0


68.6




Adjusted (1)

69.0


71.9



OPERATING MARGIN %







Unadjusted

4.1


3.8




Adjusted (1), (2)

4.2


3.8



PRETAX MARGIN %:







Unadjusted

2.8


2.7




Adjusted (1), (2)

2.9


2.6



SAME STORE SG&A RECONCILIATION:







As reported

$    238,151


$    229,946


3.6


  Pre-tax adjustments:







   Severance costs 

-


(1,837)




      Legal settlements (4)

-


9,864




 Adjusted Same Store SG&A (1)

$    238,151


$    237,973


0.1

SAME STORE SG&A AS % REVENUES:







Unadjusted

10.6


10.6




Adjusted (1)

10.6


11.0



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

68.9


69.5




Adjusted (1)

68.9


71.9



SAME STORE OPERATING MARGIN %







Unadjusted

4.1


3.7




Adjusted (1), (3)

4.2


3.8












Twelve Months Ended December 31,



2017


2016


% Increase/ (Decrease)

FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION:







As reported

$    375,954


$    377,756


(0.5)


  Pre-tax adjustments:







 Catastrophic events 

6,550


-




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

$    382,504


$    377,756


1.3








TOTAL REVENUES RECONCILIATION:







As reported

$ 8,680,565


$ 8,734,672


(0.6)


  Pre-tax adjustments:







 Catastrophic events 

6,550


-




Adjusted Total Revenues (1)

$ 8,687,115


$ 8,734,672


(0.5)








TOTAL GROSS PROFIT RECONCILIATION:







As reported

$ 1,365,314


$ 1,355,349


0.7


  Pre-tax adjustments:







 Catastrophic events 

6,550


-




Adjusted Total Gross Profit (1)

$ 1,371,864


$ 1,355,349


1.2








SG&A RECONCILIATION:







As reported

$    983,974


$    965,139


2.0


  Pre-tax adjustments:







 Catastrophic events 

(8,792)


(5,873)




 Gain (loss) on real estate and dealership transactions 

(798)


2,838




 Severance costs 

-


(1,837)




 Acquisition costs 

-


(30)




  Legal settlements (4)

1,113


11,671




Adjusted SG&A (1)

$    975,497


$    971,908


0.4








 TOTAL GROSS MARGIN %: 







Unadjusted

15.7


15.5




Adjusted (1)

15.8


15.5



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







Unadjusted

$        1,647


$        1,599


3.0


Adjusted (1)

$        1,675


$        1,599


4.8

SG&A AS % REVENUES:







Unadjusted

11.3


11.0




Adjusted (1)

11.2


11.1



SG&A AS % OF GROSS PROFIT:







Unadjusted

72.1


71.2




Adjusted (1)

71.1


71.7



OPERATING MARGIN %:







 Unadjusted 

3.7


3.7




Adjusted (1), (2)

4.0


3.9



PRETAX MARGIN %:







Unadjusted

2.4


2.5




Adjusted (1), (2)

2.7


2.7










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







As reported

$    372,001


$    372,581


(0.2)


  Pre-tax adjustments:







 Catastrophic events 

6,550


-




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

$    378,551


$    372,581


1.6








 SAME STORE TOTAL REVENUES RECONCILIATION: 







As reported

$ 8,618,652


$ 8,638,510


(0.2)


  Pre-tax adjustments:







 Catastrophic events 

6,550


-




Adjusted Total Revenues (1)

$ 8,625,202


$ 8,638,510


(0.2)








 SAME STORE TOTAL GROSS PROFIT RECONCILIATION: 







As reported

$ 1,355,471


$ 1,340,981


1.1


  Pre-tax adjustments:







 Catastrophic events 

6,550


-




Adjusted Total Gross Profit (1)

$ 1,362,021


$ 1,340,981


1.6








SAME STORE SG&A RECONCILIATION:







As reported

$    975,701


$    955,108


2.2


  Pre-tax adjustments:







 Catastrophic events 

(8,792)


(5,873)




 Loss on real estate and dealership transactions 

(798)


(384)




 Severance costs 

-


(1,837)




 Acquisition costs 

-


(30)




  Legal settlements (4)

1,113


9,864




Adjusted Same Store SG&A (1)

$    967,224


$    956,848


1.1








 SAME STORE TOTAL GROSS MARGIN %: 







Unadjusted

15.7


15.5




Adjusted (1)

15.8


15.5



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







Unadjusted

$        1,640


$        1,600


2.5


Adjusted (1)

$        1,669


$        1,600


4.3

SAME STORE SG&A AS % REVENUES:







Unadjusted

11.3


11.1




Adjusted (1)

11.2


11.1



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

72.0


71.2




Adjusted (1)

71.0


71.4



SAME STORE OPERATING MARGIN %







Unadjusted

3.7


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 $3,236 and $12,762 for the three and twelve months ended December 31, 2017, respectively, and $9,406 and $21,794 for the three and twelve months ended December 31, 2016, respectively.

(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $3,236 and $12,762 for the three and twelve months ended December 31, 2017, respectively, and $9,343 and $21,671 for the three and twelve months ended December 31, 2016, respectively.

(4)

For the twelve months ended December 31, 2017 the Company recognized a net pre-tax gain related to a settlement with an OEM of $1.8 million ($1.1 million on a Same Store basis). For the three and twelve months ended December 31, 2016, respectively, the Company recognized a net pre-tax gain related to a settlement with an OEM of $11.7 million ($9.9 million on a Same Store basis).
 

 

Group 1 Automotive, Inc.

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

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended December 31,



2017


2016


% Increase/

(Decrease)

SG&A RECONCILIATION:







As reported

$   54,095


$   39,482


37.0


  Pre-tax adjustments:







 Loss on real estate and dealership transactions 

-


(223)




 Severance costs 

-


(122)




Adjusted SG&A (1)

$   54,095


$   39,137


38.2








SG&A AS % REVENUES:







Unadjusted

10.7


10.2




Adjusted (1)

10.7


10.1



SG&A AS % GROSS PROFIT:







Unadjusted

89.5


88.9




Adjusted (1)

89.5


88.1



OPERATING MARGIN %







Unadjusted

0.8


0.8




Adjusted (1), (2)

0.8


0.9



PRETAX MARGIN %:







Unadjusted

0.3


0.2




Adjusted (1), (2)

0.3


0.3










SAME STORE SG&A RECONCILIATION:







As reported

$   43,033


$   38,468


11.9


  Pre-tax adjustments:







 Loss on real estate and dealership transactions 

-


(61)




 Severance costs 

-


(122)




Adjusted Same Store SG&A (1)

$   43,033


$   38,285


12.4








SAME STORE SG&A AS % REVENUES:







Unadjusted

10.5


10.0




Adjusted (1)

10.5


10.0



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

87.1


87.4




Adjusted (1)

87.1


87.0



SAME STORE OPERATING MARGIN %







Unadjusted

1.1


1.0




Adjusted (1), (3)

1.1


1.1












 Twelve Months Ended December 31, 



2017


2016


% Increase/(Decrease)

SG&A RECONCILIATION:














As reported

$ 191,570


$ 158,636


20.8


  Pre-tax adjustments:







 Loss on real estate and dealership transactions 

-


(223)




 Severance costs 

-


(122)




 Acquisition costs 

(288)


(561)




Adjusted SG&A (1)

$ 191,282


$ 157,730


21.3








SG&A AS % REVENUES:







Unadjusted

9.6


9.2




Adjusted (1)

9.6


9.2



SG&A AS % OF GROSS PROFIT:







Unadjusted

85.0


82.2




Adjusted (1)

84.9


81.7



OPERATING MARGIN %:







Unadjusted

1.3


1.6




Adjusted (1), (2)

1.3


1.7



PRETAX MARGIN %:







Unadjusted

0.9


1.1




Adjusted (1), (2)

0.9


1.1










SAME STORE SG&A RECONCILIATION:







As reported

$ 156,369


$ 150,626


3.8


  Pre-tax adjustments:







 Loss on real estate and dealership transactions 

-


(61)




 Severance costs 

-


(122)




 Acquisition costs 

(288)


(561)




Adjusted Same Store SG&A (1)

$ 156,081


$ 149,882


4.1








SAME STORE SG&A AS % REVENUES:







Unadjusted

9.3


9.0




Adjusted (1)

9.3


8.9



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

81.8


80.1




Adjusted (1)

81.7


79.7



SAME STORE OPERATING MARGIN %







Unadjusted

1.7


1.8




Adjusted (1), (3)

1.7


1.9












(1)

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

(2)

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

(3)

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

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Brazil

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended December 31,



2017


2016


% Increase/

(Decrease)

SG&A RECONCILIATION:







As reported

$ 13,356


$ 12,178


9.7


  Pre-tax adjustments:







 Severance costs 

(475)


-




Adjusted SG&A (1)

$ 12,881


$ 12,178


5.8








SG&A AS % REVENUES:







Unadjusted

10.7


10.6




Adjusted (1)

10.3


10.6



SG&A AS % GROSS PROFIT:







Unadjusted

91.7


90.6




Adjusted (1)

88.4


90.6



OPERATING MARGIN %







Unadjusted

(4.7)


(8.2)




Adjusted (1), (2)

1.1


0.8



PRETAX MARGIN %:







Unadjusted

(4.9)


(8.5)




Adjusted (1), (2)

0.9


0.5










SAME STORE SG&A RECONCILIATION:







As reported

$ 13,233


$ 11,124


19.0


  Pre-tax adjustments:







 Severance costs 

(475)


-




Adjusted Same Store SG&A (1)

$ 12,758


$ 11,124


14.7








SAME STORE SG&A AS % REVENUES:







Unadjusted

10.8


10.5




Adjusted (1)

10.4


10.5



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

92.0


90.5




Adjusted (1)

88.7


90.5



SAME STORE OPERATING MARGIN %







Unadjusted

(4.9)


(9.1)




Adjusted (1), (3)

1.0


0.8












 Twelve Months Ended December 31, 



2017


2016


% Increase/ (Decrease)

SG&A RECONCILIATION:







As reported

$ 50,651


$ 46,988


7.8


  Pre-tax adjustments:







 Loss on real estate and dealership transactions 

-


(372)




 Severance costs 

(475)


-




 Foreign transaction tax 

-


(274)




Adjusted SG&A (1)

$ 50,176


$ 46,342


8.3








SG&A AS % REVENUES:







Unadjusted

11.1


10.9




Adjusted (1)

11.0


10.8



SG&A AS % OF GROSS PROFIT:







Unadjusted

92.2


100.5




Adjusted (1)

91.3


99.2



OPERATING MARGIN %:







Unadjusted

(0.9)


(2.9)




Adjusted (1), (2)

0.7


(0.2)



PRETAX MARGIN %:







Unadjusted

(1.0)


(3.0)




Adjusted (1), (2)

0.6


(0.3)










SAME STORE SG&A RECONCILIATION:







As reported

$ 47,926


$ 40,315


18.9


  Pre-tax adjustments:







 Severance costs 

(475)


-




 Foreign transaction tax 

-


(274)




Adjusted Same Store SG&A (1)

$ 47,451


$ 40,041


18.5








SAME STORE SG&A AS % REVENUES:







Unadjusted

10.9


10.3




Adjusted (1)

10.8


10.2



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

90.0


95.2




Adjusted (1)

89.1


94.6



SAME STORE OPERATING MARGIN %







Unadjusted

(0.6)


(2.4)




Adjusted (1), (3)

1.0


0.3












(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 $6,744 for the three and twelve months ended December 31, 2017, respectively, and $10,420 and $10,843 for the three and twelve months ended December 31, 2016, respectively.

(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $6,744 for the three and twelve months ended December 31, 2017, respectively, and $10,420 for the three and twelve months ended December 31, 2016, respectively.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - CONSOLIDATED

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended December 31,



2017


2016


% Increase/

(Decrease)








NET INCOME RECONCILIATION:







As reported







  Pretax Net Income

$        58,974


$        48,520




   Income Tax Benefit (Provision) 

51,515


(17,692)




     Net Income  

$      110,489


$        30,828


258.4


       Effective Tax Rate 

(87.4)%


36.5%




 Pre-tax adjustments:  







 (Gain) loss on real estate and dealership transactions 







 Pre-tax 

-


(529)




 Tax impact 

-


264




 Severance costs  







 Pre-tax 

475


1,959




 Tax impact 

(122)


(710)




      Legal settlements (4)







 Pre-tax 

-


(11,671)




 Tax impact 

-


4,359




 Non-cash asset impairment 







 Pre-tax  

9,979


19,797




 Tax impact 

(3,515)


(7,041)




 Tax rate changes 







 Pre-tax  

-


-




 Tax impact 

(73,028)


-




 Adjusted 







   Pretax Net Income 

$        69,428


$        58,076




   Income Tax Provision 

(25,150)


(20,820)




   Adjusted net income (1)

$        44,278


$        37,256


23.4


       Effective Tax Rate 

36.2%


35.8%










ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED







COMMON SHARES RECONCILIATION:







Adjusted net income (1)

$        44,278


$        37,256


23.4


Less: Adjusted earnings allocated to participating securities

1,483


1,477


0.4


Adjusted net income available to diluted common shares (1)

$        42,795


$        35,779


19.6








 DILUTED INCOME PER COMMON SHARE RECONCILIATION: 







As reported

$            5.27


$            1.44


266.0


  After-tax adjustments:







 Gain on real estate and dealership transactions 

-


(0.01)




 Severance costs  

0.02


0.06




 Legal settlements  

-


(0.34)




 Non-cash asset impairment 

0.30


0.59




 Tax rate changes  

(3.48)


-




Adjusted diluted income per share(1)

$            2.11


$            1.74


25.9








SG&A RECONCILIATION:







As reported

$      309,521


$      279,071


10.9


  Pre-tax adjustments:







 Gain on real estate and dealership transactions 

-


759




 Severance costs  

(475)


(1,959)




   Legal settlements (4)

-


11,671




Adjusted SG&A (1)

$      309,046


$      289,542


6.7








SG&A AS % REVENUES:







Unadjusted

10.6


10.4




Adjusted (1)

10.6


10.8



SG&A AS % GROSS PROFIT:







Unadjusted

72.7


71.7




Adjusted (1)

72.6


74.4



OPERATING MARGIN %







Unadjusted

3.1


2.9




Adjusted (1), (2)

3.5


3.2



PRETAX MARGIN %:







Unadjusted

2.0


1.8




Adjusted (1), (2)

2.4


2.2










SAME STORE SG&A RECONCILIATION:







As reported

$      294,417


$      279,538


5.3


  Pre-tax adjustments:







 Loss on real estate and dealership transactions 

-


(61)




 Severance costs  

(475)


(1,959)




  Legal settlements (4)

-


9,864




Adjusted Same Store SG&A (1)

$      293,942


$      287,382


2.3








SAME STORE SG&A AS % REVENUES:







Unadjusted

10.6


10.5




Adjusted (1)

10.5


10.8



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

71.9


72.2




Adjusted (1)

71.8


74.2



SAME STORE OPERATING MARGIN %







Unadjusted

3.3


2.8




Adjusted (1), (3)

3.6


3.3












 Twelve Months Ended December 31, 



2017


2016


% Increase/ (Decrease)

NET INCOME RECONCILIATION:







As reported







  Pretax Net Income

$      219,003


$      227,371




   Income Tax Provision 

(5,561)


(80,306)




     Net Income  

$      213,442


$      147,065


45.1


       Effective Tax Rate 

2.5%


35.3%




 Adjustments: 







 Catastrophic events  







 Pre-tax 

15,342


5,873




 Tax impact 

(5,926)


(2,207)




 (Gain) loss on real estate and dealership transactions 







 Pre-tax 

798


(1,530)




 Tax impact 

(301)


937




 Severance costs  







 Pre-tax 

475


1,959




 Tax impact 

(122)


(710)




 Acquisition costs including related tax impact  







 Pre-tax 

288


591




 Tax impact 

-


(11)




      Legal settlements (4)







 Pre-tax 

(1,113)


(11,671)




 Tax impact 

426


4,359




 Foreign transaction tax  







 Pre-tax 

-


274




 Tax impact 

-


-




 Non-cash asset impairment 







 Pre-tax  

19,505


32,124




 Tax impact 

(7,094)


(11,676)




 Allowance for uncertain tax positions 







 Pre-tax  

-


-




 Tax impact 

834


-




 Tax rate changes 







 Pre-tax  

-


-




 Tax impact 

(73,028)


-




 Foreign deferred income tax benefit 







 Pre-tax  

-


-




 Tax impact 

-


(1,686)




 Adjusted 







   Pretax Net Income 

$      254,298


$      254,991




   Income Tax Provision 

(90,772)


(91,300)




              Adjusted net income (1)

$      163,526


$      163,691


(0.1)


      Effective Tax Rate

35.7%


35.8%










 ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED 







 COMMON SHARES RECONCILIATION: 







 Adjusted net income (1)

$      163,526


$      163,691


(0.1)


 Less: Adjusted earnings allocated to participating securities 

5,738


6,537


(12.2)


 Adjusted net income available to diluted common shares (1)

$      157,788


$      157,154


0.4








 DILUTED INCOME PER COMMON SHARE RECONCILIATION: 







 As reported 

$          10.08


$            6.67


51.1


  After-tax adjustments: 







 Catastrophic events  

0.45


0.17




 (Gain) loss on real estate and dealership transactions 

0.03


(0.03)




 Severance costs  

0.01


0.05




 Acquisition costs including related tax impact  

0.01


0.02




 Legal settlements  

(0.03)


(0.33)




 Foreign transaction tax  

-


0.01




 Non-cash asset impairment 

0.59


0.93




 Allowance for uncertain tax positions 

0.04


-




 Tax rate changes 

(3.45)


-




 Foreign deferred income tax benefit 

-


(0.07)




   Adjusted diluted income per share (1)

$            7.73


$            7.42


4.2








 FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION: 







As reported

$      429,002


$      420,654


2.0


  Pre-tax adjustments:







Catastrophic events

6,550


-




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

$      435,552


$      420,654


3.5








 TOTAL REVENUES RECONCILIATION: 







As reported

$ 11,123,721


$ 10,887,612


2.2


  Pre-tax adjustments:







Catastrophic events

6,550


-




Adjusted Total Revenues (1)

$ 11,130,271


$ 10,887,612


2.2








 TOTAL GROSS PROFIT RECONCILIATION: 







As reported

$   1,645,509


$   1,595,069


3.2


  Pre-tax adjustments:







   Catastrophic events 

6,550


-




Adjusted Total Gross Profit (1)

$   1,652,059


$   1,595,069


3.6








SG&A RECONCILIATION:







As reported

$   1,226,195


$   1,170,763


4.7


  Pre-tax adjustments:







 Catastrophic events  

(8,792)


(5,873)




 Gain (loss) on real estate and dealership transactions 

(798)


2,243




 Severance costs  

(475)


(1,959)




 Acquisition costs 

(288)


(591)




 Legal settlements (4)

1,113


11,671




 Foreign transaction tax  

-


(274)




Adjusted SG&A (1)

$   1,216,955


$   1,175,980


3.5








 TOTAL GROSS MARGIN %: 







Unadjusted

14.8


14.7




Adjusted (1)

14.8


14.7



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







Unadjusted

$          1,420


$          1,397


1.6


Adjusted (1)

$          1,442


$          1,397


3.2

SG&A AS % REVENUES:







Unadjusted

11.0


10.8




Adjusted (1)

10.9


10.8



SG&A AS % OF GROSS PROFIT:







Unadjusted

74.5


73.4




Adjusted (1)

73.7


73.7



OPERATING MARGIN %:







Unadjusted

3.1


3.1




Adjusted (1), (2)

3.4


3.4



PRETAX MARGIN %:







Unadjusted

2.0


2.1




Adjusted(1), (2)

2.3


2.3










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







As reported

$      417,905


$      414,015


0.9


  Pre-tax adjustments:







Catastrophic events

6,550


-




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

$      424,455


$      414,015


2.5

 SAME STORE TOTAL REVENUES RECONCILIATION: 







As reported

$ 10,738,316


$ 10,707,166


0.3


  Pre-tax adjustments:







Catastrophic events

6,550


-




Adjusted Total Revenues (1)

$ 10,744,866


$ 10,707,166


0.4

 SAME STORE TOTAL GROSS PROFIT RECONCILIATION: 







As reported

$   1,599,824


$   1,571,284


1.8


  Pre-tax adjustments:







Catastrophic events

6,550


-




Adjusted Total Gross Profit(1)

$   1,606,374


$   1,571,284


2.2








 SAME STORE SG&A RECONCILIATION: 







As reported

$   1,179,996


$   1,146,049


3.0


  Pre-tax adjustments:







Catastrophic events 

(8,792)


(5,873)




Loss on real estate and dealership transactions

(798)


(446)




Severance costs 

(475)


(1,959)




Acquisition costs

(288)


(591)




      Legal settlements (4)

1,113


9,864




Foreign transaction tax 

-


(274)




Adjusted Same Store SG&A (1)

$   1,170,756


$   1,146,770


2.1








 SAME STORE TOTAL GROSS MARGIN %: 







 Unadjusted 

14.9


14.7




Adjusted (1)

15.0


14.7



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







Unadjusted

$          1,443


$          1,407


2.6


Adjusted(1)

$          1,465


$          1,407


4.1








 SAME STORE SG&A AS % REVENUES: 







 Unadjusted 

11.0


10.7




Adjusted (1)

10.9


10.7



 SAME STORE SG&A AS % GROSS PROFIT: 







Unadjusted

73.8


72.9




Adjusted (1)

72.9


73.0



 SAME STORE OPERATING MARGIN % 







Unadjusted

3.2


3.2




Adjusted (1), (3)

3.5


3.5










(1)

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

(2)

Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $9,979 and $19,505 for the three and twelve months ended December 31, 2017, respectively, and $20,027 and $32,838 for the three and twelve months ended December 31, 2016, respectively.

(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $9,979 and $19,505 for the three and twelve months ended December 31, 2017, respectively, and $19,965 and $32,292 for the three and twelve months ended December 31, 2016, respectively.

(4)

For the twelve months ended December 31, 2017 the Company recognized a net pre-tax gain related to a settlement with an OEM of $1.8 million ($1.1 million on a Same Store basis). For the three and twelve months ended December 31, 2016, respectively, the Company recognized a net pre-tax gain related to a settlement with an OEM of $11.7 million ($9.9 million on a Same Store basis).

 

Cision View original content:http://www.prnewswire.com/news-releases/group-1-automotive-reports-record-fourth-quarter--full-year-2017-financial-results-300595571.html

SOURCE Group 1 Automotive, Inc.

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