GROUP 1 AUTOMOTIVE INC - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - 8-K - GROUP 1 AUTOMOTIVE INC	a20152ndquarterearningsrel.htm

Exhibit 99.1

FOR IMMEDIATE RELEASE

Group 1 Automotive Reports Record Quarterly Earnings

Record Revenue and Strong Expense Leverage Help Drive 34.7% Adjusted EPS Increase

HOUSTON, July 23, 2015 - Group 1 Automotive, Inc. (NYSE: GPI), an international, Fortune 500 automotive retailer, today reported record second quarter 2015 adjusted net income of $47.9 million, a 19.9 percent increase over the prior year. Adjusted diluted earnings per share of $1.98 were also an all-time record for any quarter, and a 34.7 percent increase from the comparable, adjusted prior-year period.

The quarter included non-recurring net after-tax charges of $1.6 million reflecting non-cash asset impairments of $0.8 million, resolution of a prior period legal matter of $0.6 million, losses from flood damage of $0.6 million, and severance costs of $0.2 million, partially offset by a gain on a dealership disposition of $0.6 million. GAAP net income and diluted earnings per share were $46.3 million and $1.91, respectively. Reconciliations of non-GAAP financial measures are included in the attached financial tables.

“We are pleased to report another record-setting quarter,” said Earl J. Hesterberg, Group 1’s president and chief executive officer. “The combination of continued solid top-line growth in the United States and the United Kingdom, combined with improved expense leverage, delivered all-time record adjusted diluted EPS of $1.98. We are particularly pleased with our 14 percent increase in both U.S. and U.K. Same Store used vehicle sales and the acceleration of our U.S. parts and service revenue, which was up 8 percent on a Same Store basis. Finally, although overall market conditions have continued to deteriorate in Brazil, the combination of our brand profile and cost cutting initiatives allowed us to deliver a pre-tax profit in that market this quarter, which is an impressive accomplishment by our Brazilian operating team.”

Consolidated Results for Second Quarter 2015 (year-over-year comparable basis)


▪	Total revenue increased 8.6 percent to an all-time quarterly record of $2.7 billion; total gross profit grew 6.1 percent to $391.6 million. On a constant currency basis, revenues were up 11.7 percent.


▪	New vehicle revenue increased 4.7 percent, reflecting 5.4 percent higher unit sales, as U.S. Same Store new vehicle revenue increased 5.2 percent, reflecting unit sales growth of 4.5 percent.


▪	Used vehicle retail revenue increased 18.2 percent, primarily reflecting 17.7 percent higher used retail unit sales. U.S. Same Store used vehicle revenue increased 16.1 percent, reflecting 14.2 percent growth in unit sales.


▪	Parts and service gross profit increased 9.2 percent on revenue growth of 7.1 percent. U.S. Same Store parts and service gross profit increased 9.3 percent on revenue growth of 8.0 percent.


▪	Finance and Insurance (F&I) gross profit increased 16.7 percent, as total retail units sold increased 10.2 percent and F&I per retail unit improved $78 to $1,381, a 6.0 percent increase. U.S. Same Store F&I gross profit grew 13.1 percent, as F&I per retail unit improved $64 to $1,525.


▪	Adjusted selling, general and administrative (SG&A) expenses as a percent of gross profit improved 170 basis points, to 71.4 percent. U.S. Same Store adjusted SG&A improved 90 basis points, to a best-quarter-ever level of 69.6 percent. On a GAAP basis, SG&A expenses as a percent of gross profit improved 200 basis points, to 71.7 percent.


▪	Adjusted operating margin increased 20 basis points to 3.7 percent. On a GAAP basis, operating margin also grew 20 basis points, to 3.6 percent.

For the six-month period ended June 30, 2015, the Company reported adjusted net income of $83.7 million, or $3.44 per diluted share, compared to adjusted net income of $71.3 million, or $2.66 per diluted share for the same period in the prior year. On a GAAP basis, net income and diluted EPS for the six-month period ended June 30, 2015 were $82.1 million and $3.38, respectively. The Company’s total revenue for the six-month period ended June 30, 2015 increased 8.1 percent to $5.2 billion. On a constant currency basis, revenue increased 11.0 percent.

Segment Results for Second Quarter 2015 (year-over-year comparable basis)


▪	United States:

The Company’s U.S. revenues were $2.3 billion, an increase of 11.0 percent. The revenue growth was primarily attributed to unit sales increases of 6.3 percent in new vehicles and 18.2 percent in retail used vehicles, as well as an increase of 8.3 percent in parts and service revenue. The higher revenue drove U.S. gross profit growth of 8.0 percent, reflecting the higher new and used retail volumes, expanded parts and service gross margins of 90 basis points, and an F&I gross profit increase of 18.2 percent, driven by an increase in both volume and F&I per retail unit of $93 to $1,535.

On a comparable basis, adjusted SG&A expenses as a percent of gross profit improved 150 basis points to a best ever 69.8 percent and adjusted operating margin grew 10 basis points to 4.1 percent. The Company’s U.S. operations accounted for 83.9 percent of total revenues and 87.3 percent of total gross profit.


▪	United Kingdom:

The Company’s U.K. operations accounted for 11.3 percent of total revenues and 8.7 percent of total gross profit. Total revenue increased 22.6 percent (34.7 percent on a constant currency basis) to $308.2 million, and gross profit increased 14.9 percent (26.1 percent on a local currency basis). The gross profit increase was driven by new vehicle retail revenue growth of 21.6 percent, total used vehicle revenue growth of 23.3 percent, parts and service revenue growth of 24.7 percent, and an F&I revenue increase of 28.7 percent.

On a comparable basis, adjusted SG&A expenses as a percent of gross profit increased 230 basis points to 77.9 percent and adjusted operating margin was 2.1 percent.


▪	Brazil:

The Company’s Brazil operations accounted for 4.8 percent of total revenues and 4.0 percent of total gross profit. Gross profit was $15.5 million, representing an increase of 0.3 percent over prior year on a Same Store constant currency basis.

Adjusted SG&A expenses as a percent of gross profit improved 420 basis points to 90.9 percent and adjusted operating margin was 0.7 percent, an increase of 40 basis points from the prior year.

Corporate Development

During the second quarter of 2015, the Company disposed of one Audi dealership in South Carolina and terminated two Peugeot franchises in Brazil that generated trailing-twelve-month revenues of approximately $25 million.

Year to date, the Company has acquired two Audi franchises that are expected to generate approximately $240 million in annual revenues and disposed of four franchises that generated trailing-twelve-month revenues of approximately $30 million.

Share Repurchase Authorization

During the quarter, the Company repurchased approximately 208,000 shares at an average price per share of $81.30 for a total of $16.9 million. Year to date, the Company has repurchased approximately 407,000 shares at an average price of $81.46 for a total of $33.1 million. As of June 30, 2015, $66.3 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.

Second Quarter Earnings Conference Call Details

The Company’s senior management will host a conference call today at 10 a.m. ET to discuss the second 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

Access Code: 7294157

A telephonic replay will be available following the call through August 28, 2015 at 11:59 p.m. ET by dialing:

Domestic: 1-877-344-7529

International: 1-412-317-0088

Access Code: 10068876

About Group 1 Automotive, Inc.

Group 1 owns and operates 148 automotive dealerships, 193 franchises, and 38 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 and insurance contracts; provides automotive maintenance and repair services; and sells vehicle parts.

Group 1 Automotive can be reached on the Internet at www.group1auto.com.

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.

SOURCE: Group 1 Automotive, Inc.

Investor contacts:

Sheila Roth

Manager, Investor Relations

Group 1 Automotive, Inc.

713-647-5741 | sroth@group1auto.com

Media contacts:

Pete DeLongchamps

V.P. Manufacturer Relations, Financial Services and Public Affairs

Group 1 Automotive, Inc.

713-647-5770 | pdelongchamps@group1auto.com

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 June 30,
	2015			2014			% Change
REVENUES:
New vehicle retail sales	$	1,534,262		$	1,466,064		4.7
Used vehicle retail sales	682,294			577,250			18.2
Used vehicle wholesale sales	101,512			94,971			6.9
Parts and service	303,193			283,207			7.1
Finance and insurance	105,219			90,146			16.7
Total revenues	2,726,480			2,511,638			8.6
COST OF SALES:
New vehicle retail sales	1,458,132			1,385,218			5.3
Used vehicle retail sales	636,235			531,584			19.7
Used vehicle wholesale sales	102,445			93,730			9.3
Parts and service	138,095			131,958			4.7
Total cost of sales	2,334,907			2,142,490			9.0
GROSS PROFIT	391,573			369,148			6.1
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	280,568			271,970			3.2
DEPRECIATION AND AMORTIZATION EXPENSE	11,946			10,753			11.1
ASSET IMPAIRMENTS	1,039			1,721			(39.6	)
OPERATING INCOME	98,020			84,704			15.7
OTHER EXPENSE:
Floorplan interest expense	(10,015		)	(10,329		)	(3.0	)
Other interest expense, net	(14,228		)	(12,567		)	13.2
Loss on extinguishment of long-term debt	—			(23,614		)	(100.0	)
INCOME BEFORE INCOME TAXES	73,777			38,194			93.2
PROVISION FOR INCOME TAXES	(27,467		)	(21,332		)	28.8
NET INCOME	$	46,310		$	16,862		174.6
Earnings allocated to participating securities	$	(1,792	)	$	(619	)	189.5
Earnings available to diluted common shares	$	44,518		$	16,243		174.1
DILUTED EARNINGS PER SHARE	$	1.91		$	0.62		208.1
Weighted average dilutive common shares outstanding	23,315			26,242			(11.2	)
Weighted average participating securities	944			986			(4.3	)
Total weighted average shares outstanding	24,259			27,228			(10.9	)



	Six Months Ended June 30,
	2015			2014			% Change
REVENUES:
New vehicle retail sales	$	2,866,986		$	2,734,900		4.8
Used vehicle retail sales	1,305,487			1,127,147			15.8
Used vehicle wholesale sales	201,704			184,144			9.5
Parts and service	585,382			552,524			5.9
Finance and insurance	199,775			173,786			15.0
Total revenues	5,159,334			4,772,501			8.1
COST OF SALES:
New vehicle retail sales	2,721,125			2,587,148			5.2
Used vehicle retail sales	1,213,307			1,038,680			16.8
Used vehicle wholesale sales	199,958			179,791			11.2
Parts and service	269,487			259,612			3.8
Total cost of sales	4,403,877			4,065,231			8.3
GROSS PROFIT	755,457			707,270			6.8
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	552,037			529,528			4.3
DEPRECIATION AND AMORTIZATION EXPENSE	23,630			20,678			14.3
ASSET IMPAIRMENTS	1,039			1,721			(39.6	)
OPERATING INCOME	178,751			155,343			15.1
OTHER EXPENSE:
Floorplan interest expense	(19,362		)	(21,242		)	(8.9	)
Other interest expense, net	(28,139		)	(23,080		)	21.9
Loss on extinguishment of long-term debt	—			(23,614		)	(100.0	)
INCOME BEFORE INCOME TAXES	131,250			87,407			50.2
PROVISION FOR INCOME TAXES	(49,126		)	(39,242		)	25.2
NET INCOME	$	82,124		$	48,165		70.5
Earnings allocated to participating securities	$	(3,176	)	$	(1,773	)	79.1
Earnings available to diluted common shares	$	78,948		$	46,392		70.2
DILUTED EARNINGS PER SHARE	$	3.38		$	1.80		87.8
Weighted average dilutive common shares outstanding	23,380			25,837			(9.5	)
Weighted average participating securities	938			974			(3.7	)
Total weighted average shares outstanding	24,318			26,811			(9.3	)



Group 1 Automotive, Inc.
Consolidated Balance Sheets
(Dollars in thousands)
	June 30,			December 31,
	2015			2014			% Change
	(Unaudited)
ASSETS:
CURRENT ASSETS:
Cash and cash equivalents	$	24,225		$	40,975		(40.9	)
Contracts in transit and vehicle receivables, net	233,888			237,448			(1.5	)
Accounts and notes receivable, net	144,265			151,330			(4.7	)
Inventories, net	1,657,105			1,556,705			6.4
Deferred income taxes	12,031			11,062			8.8
Prepaid expenses and other current assets	27,851			37,699			(26.1	)
Total current assets	2,099,365			2,035,219			3.2
PROPERTY AND EQUIPMENT, net	965,363			950,388			1.6
GOODWILL AND INTANGIBLE FRANCHISE RIGHTS	1,219,011			1,134,324			7.5
OTHER ASSETS	19,235			21,561			(10.8	)
Total assets	$	4,302,974		$	4,141,492		3.9

LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES:
Floorplan notes payable - credit facility and other	$	1,205,729		$	1,143,246		5.5
Offset account related to floorplan notes payable - credit facility	(22,466		)	(39,616		)	(43.3	)
Floorplan notes payable - manufacturer affiliates	308,710			307,656			0.3
Offset account related to floorplan notes payable - manufacturer affiliates	(23,300		)	(22,500		)	3.6
Current maturities of long-term debt	76,442			72,630			5.2
Accounts payable	304,361			288,320			5.6
Accrued expenses	161,123			172,463			(6.6	)
Total current liabilities	2,010,599			1,922,199			4.6
5.00% SENIOR NOTES (aggregate principal of $550,000 at June 30, 2015 and December 31, 2014)	540,666			540,100			0.1
REAL ESTATE CREDIT FACILITY, net of current maturities	25,429			27,099			(6.2	)
ACQUISITION LINE	90,721			69,713			30.1
OTHER REAL ESTATE RELATED AND LONG-TERM DEBT, net of current maturities	334,736			319,984			4.6
CAPITAL LEASE OBLIGATIONS RELATED TO REAL ESTATE, net of current maturities	50,300			51,941			(3.2	)
DEFERRED INCOME TAXES	147,818			141,239			4.7
LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES	29,020			25,311			14.7
OTHER LIABILITIES	69,534			65,896			5.5
STOCKHOLDERS' EQUITY:
Common stock	258			257			0.4
Additional paid-in capital	287,045			286,854			0.1
Retained earnings	924,473			852,057			8.5
Accumulated other comprehensive loss	(103,341		)	(81,984		)	26.1
Treasury stock	(104,284		)	(79,174		)	31.7
Total stockholders' equity	1,004,151			978,010			2.7
Total liabilities and stockholders' equity	$	4,302,974		$	4,141,492		3.9



Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)

		Three Months Ended		Six Months Ended
		June 30,		June 30,
		2015 (%)	2014 (%)	2015 (%)	2014 (%)
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
Region	Geographic Market
East	Massachusetts	6.5	5.9	6.2	5.7
	Georgia	4.6	4.8	4.6	4.6
	New Jersey	2.4	3.7	2.3	3.5
	Florida	2.3	1.4	1.8	1.3
	New Hampshire	2.0	2.2	1.9	2.2
	Louisiana	1.6	1.8	1.6	1.9
	Mississippi	1.5	1.5	1.5	1.4
	South Carolina	1.4	1.5	1.4	1.4
	Alabama	0.7	0.9	0.8	0.8
	Maryland	0.5	0.5	0.5	0.5
	New York	—	2.2	—	2.0
		23.5	26.4	22.6	25.3

West	Texas	38.5	34.1	38.6	34.1
	California	10.1	9.9	9.8	9.7
	Oklahoma	7.5	8.1	7.6	8.3
	Kansas	2.1	2.5	2.1	2.5
	Louisiana	0.7	0.7	0.7	0.7
		58.9	55.3	58.8	55.3

International	United Kingdom	10.5	8.5	10.9	9.2
	Brazil	7.1	9.8	7.7	10.2
		100.0	100.0	100.0	100.0
NEW VEHICLE UNIT SALES BRAND MIX:
Toyota/Scion/Lexus		26.9	27.2	26.5	26.6
BMW/MINI		11.3	11.7	11.5	11.5
Ford/Lincoln		11.2	10.8	11.6	11.4
Honda/Acura		10.8	11.4	10.8	11.5
Nissan		8.2	9.3	8.7	9.5
Chevrolet/GMC/Buick/Cadillac		7.3	5.4	7.4	5.4
Volkswagen/Audi/Porsche		7.2	6.3	6.6	6.4
Hyundai/Kia		6.4	5.5	6.0	5.5
Chrysler/Dodge/Jeep/RAM		4.8	4.4	4.6	4.5
Mercedes-Benz/smart/Sprinter		4.3	4.4	4.2	4.2
Other		1.6	3.6	2.1	3.5
		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 June 30,
	2015			2014			% Change
REVENUES:
New vehicle retail sales	$	1,279,569		$	1,191,321		7.4
Used vehicle retail sales	572,533			474,075			20.8
Used vehicle wholesale sales	73,493			68,649			7.1
Total used	646,026			542,724			19.0
Parts and service	264,063			243,796			8.3
Finance and insurance	97,789			82,755			18.2
Total	$	2,287,447		$	2,060,596		11.0
GROSS MARGIN %:
New vehicle retail sales	4.6			5.2
Used vehicle retail sales	7.0			8.2
Used vehicle wholesale sales	(0.6		)	1.7
Total used	6.2			7.4
Parts and service	55.0			54.1
Finance and insurance	100.0			100.0
Total	15.0			15.4
GROSS PROFIT:
New vehicle retail sales	$	59,434		$	62,096		(4.3	)
Used vehicle retail sales	40,301			38,922			3.5
Used vehicle wholesale sales	(457		)	1,139			(140.1	)
Total used	39,844			40,061			(0.5	)
Parts and service	145,117			131,865			10.0
Finance and insurance	97,789			82,755			18.2
Total	$	342,184		$	316,777		8.0
UNITS SOLD:
Retail new vehicles sold	36,882			34,685			6.3
Retail used vehicles sold	26,835			22,707			18.2
Wholesale used vehicles sold	11,265			10,461			7.7
Total used	38,100			33,168			14.9
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	34,694		$	34,347		1.0
Used vehicle retail	$	21,335		$	20,878		2.2
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,611		$	1,790		(10.0	)
Used vehicle retail sales	1,502			1,714			(12.4	)
Used vehicle wholesale sales	(41		)	109			(137.6	)
Total used	1,046			1,208			(13.4	)
Finance and insurance (per retail unit)	$	1,535		$	1,442		6.4
OTHER: ⁽¹⁾
SG&A expenses	$	238,964		$	225,898		5.8
SG&A as % revenues	10.4			11.0
SG&A as % gross profit	69.8			71.3
Operating margin %	4.1			4.0
Pretax margin %	3.1			3.0
INTEREST EXPENSE:
Floorplan interest	$	(8,958	)	$	(8,361	)	7.1
Floorplan assistance	12,583			11,378			10.6
Net floorplan income	$	3,625		$	3,017		20.2
Other interest expense, net	$	(13,073	)	$	(11,799	)	10.8




	Six Months Ended June 30,
	2015			2014			% Change
REVENUES:
New vehicle retail sales	$	2,366,728		$	2,203,873		7.4
Used vehicle retail sales	1,084,506			924,562			17.3
Used vehicle wholesale sales	142,871			133,120			7.3
Total used	1,227,377			1,057,682			16.0
Parts and service	507,007			474,115			6.9
Finance and insurance	184,835			159,552			15.8
Total	$	4,285,947		$	3,895,222		10.0
GROSS MARGIN %:
New vehicle retail sales	4.8			5.1
Used vehicle retail sales	7.5			8.3
Used vehicle wholesale sales	1.2			2.6
Total used	6.7			7.5
Parts and service	54.5			53.6
Finance and insurance	100.0			100.0
Total	15.3			15.6
GROSS PROFIT:
New vehicle retail sales	$	113,121		$	113,031		0.1
Used vehicle retail sales	80,853			76,362			5.9
Used vehicle wholesale sales	1,688			3,395			(50.3	)
Total used	82,541			79,757			3.5
Parts and service	276,175			254,168			8.7
Finance and insurance	184,835			159,552			15.8
Total	$	656,672		$	606,508		8.3
UNITS SOLD:
Retail new vehicles sold	68,320			64,632			5.7
Retail used vehicles sold	51,983			45,450			14.4
Wholesale used vehicles sold	21,809			20,411			6.8
Total used	73,792			65,861			12.0
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	34,642		$	34,099		1.6
Used vehicle retail	$	20,863		$	20,342		2.6
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,656		$	1,749		(5.3	)
Used vehicle retail sales	1,555			1,680			(7.4	)
Used vehicle wholesale sales	77			166			(53.6	)
Total used	1,119			1,211			(7.6	)
Finance and insurance (per retail unit)	$	1,536		$	1,449		6.0
OTHER: ⁽¹⁾
SG&A expenses	$	468,937		$	442,294		6.0
SG&A as % revenues	10.9			11.4
SG&A as % gross profit	71.4			72.9
Operating margin %	3.9			3.8
Pretax margin %	2.9			2.8
INTEREST EXPENSE:
Floorplan interest	$	(17,476	)	$	(16,945	)	3.1
Floorplan assistance	23,159			21,093			9.8
Net floorplan income	$	5,683		$	4,148		37.0
Other interest expense, net	$	(25,797	)	$	(22,062	)	16.9

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



Group 1 Automotive, Inc.
Additional Information - U.K.
(Unaudited)
(Dollars in thousands, except per unit amounts)
(Dollars in thousands, except per unit amounts)
	Three Months Ended June 30,
	2015			2014			% Change		Local Currency % Change
REVENUES:
New vehicle retail sales	$	160,245		$	131,803		21.6		33.6
Used vehicle retail sales	91,172			73,260			24.4		36.8
Used vehicle wholesale sales	25,756			21,549			19.5		31.5
Total used	116,928			94,809			23.3		35.6
Parts and service	25,202			20,211			24.7		37.0
Finance and insurance	5,792			4,501			28.7		41.3
Total	$	308,167		$	251,324		22.6		34.7
GROSS MARGIN %:
New vehicle retail sales	6.1			6.9
Used vehicle retail sales	5.4			6.7
Used vehicle wholesale sales	(2.5		)	(1.3		)
Total used	3.6			4.9
Parts and service	55.8			56.1
Finance and insurance	100.0			100.0
Total	11.0			11.7
GROSS PROFIT:
New vehicle retail sales	$	9,792		$	9,040		8.3		18.7
Used vehicle retail sales	4,894			4,930			(0.7	)	9.2
Used vehicle wholesale sales	(632		)	(281		)	124.9		145.5
Total used	4,262			4,649			(8.3	)	0.9
Parts and service	14,070			11,336			24.1		36.4
Finance and insurance	5,792			4,501			28.7		41.3
Total	$	33,916		$	29,526		14.9		26.1
UNITS SOLD:
Retail new vehicles sold	4,686			3,626			29.2
Retail used vehicles sold	3,638			2,720			33.8
Wholesale used vehicles sold	2,956			2,195			34.7
Total used	6,594			4,915			34.2
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	34,197		$	36,349		(5.9	)	3.4
Used vehicle retail	$	25,061		$	26,934		(7.0	)	2.3
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	2,090		$	2,493		(16.2	)	(8.2	)
Used vehicle retail sales	1,345			1,813			(25.8	)	(18.4	)
Used vehicle wholesale sales	(214		)	(128		)	67.2		82.3
Total used	646			946			(31.7	)	(24.8	)
Finance and insurance (per retail unit)	$	696		$	709		(1.8	)	7.7
OTHER: ⁽¹⁾
SG&A expenses	$	26,433		$	22,316		18.4		30.2
SG&A as % revenues	8.6			8.9
SG&A as % gross profit	77.9			75.6
Operating margin %	2.1			2.5
Pretax margin %	1.6			2.2
INTEREST EXPENSE:
Floorplan interest	$	(555	)	$	(336	)	65.2
Floorplan assistance	198			156			26.9
Net floorplan expense	$	(357	)	$	(180	)	98.3
Other interest expense, net	$	(824	)	$	(509	)	61.9



	Six Months Ended June 30,
	2015			2014			% Change		Local Currency % Change
REVENUES:
New vehicle retail sales	$	311,456		$	262,404		18.7		30.4
Used vehicle retail sales	180,308			144,737			24.6		36.5
Used vehicle wholesale sales	53,834			41,194			30.7		43.3
Total used	234,142			185,931			25.9		38.0
Parts and service	50,790			41,571			22.2		33.8
Finance and insurance	11,320			9,119			24.1		36.1
Total	$	607,708		$	499,025		21.8		33.6
GROSS MARGIN %:
New vehicle retail sales	6.3			6.7
Used vehicle retail sales	5.3			5.9
Used vehicle wholesale sales	(0.6		)	0.4
Total used	3.9			4.7
Parts and service	54.7			55.1
Finance and insurance	100.0			100.0
Total	11.2			11.7
GROSS PROFIT:
New vehicle retail sales	$	19,742		$	17,538		12.6		23.8
Used vehicle retail sales	9,532			8,519			11.9		22.8
Used vehicle wholesale sales	(311		)	170			(282.9	)	(296.2	)
Total used	9,221			8,689			6.1		16.5
Parts and service	27,791			22,909			21.3		32.9
Finance and insurance	11,320			9,119			24.1		36.1
Total	$	68,074		$	58,255		16.9		28.2
UNITS SOLD:
Retail new vehicles sold	9,195			7,371			24.7
Retail used vehicles sold	7,281			5,459			33.4
Wholesale used vehicles sold	5,891			4,356			35.2
Total used	13,172			9,815			34.2
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	33,872		$	35,600		(4.9	)	4.6
Used vehicle retail	$	24,764		$	26,513		(6.6	)	2.3
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	2,147		$	2,379		(9.8	)	(0.7	)
Used vehicle retail sales	1,309			1,561			(16.1	)	(7.9	)
Used vehicle wholesale sales	(53		)	39			(235.9	)	(245.1	)
Total used	700			885			(20.9	)	(13.2	)
Finance and insurance (per retail unit)	$	687		$	711		(3.4	)	6.0
OTHER: ⁽¹⁾
SG&A expenses	$	53,195		$	44,788		18.8		30.2
SG&A as % revenues	8.8			9.0
SG&A as % gross profit	78.1			76.9
Operating margin %	2.1			2.4
Pretax margin %	1.7			2.0
INTEREST EXPENSE:
Floorplan interest	$	(1,065	)	$	(769	)	38.5
Floorplan assistance	383			258			48.4
Net floorplan expense	$	(682	)	$	(511	)	33.5
Other interest expense, net	$	(1,559	)	$	(960	)	62.4



Group 1 Automotive, Inc.
Additional Information - Brazil
(Unaudited)
(Dollars in thousands, except per unit amounts)

	Three Months Ended June 30,
	2015			2014			% Change		Local Currency % Change
REVENUES:
New vehicle retail sales	$	94,448		$	142,940		(33.9	)	(8.9	)
Used vehicle retail sales	18,589			29,915			(37.9	)	(14.3	)
Used vehicle wholesale sales	2,263			4,773			(52.6	)	(34.6	)
Total used	20,852			34,688			(39.9	)	(17.1	)
Parts and service	13,928			19,200			(27.5	)	0.1
Finance and insurance	1,638			2,890			(43.3	)	(21.9	)
Total	$	130,866		$	199,718		(34.5	)	(9.6	)
GROSS MARGIN %:
New vehicle retail sales	7.3			6.8
Used vehicle retail sales	4.6			6.1
Used vehicle wholesale sales	6.9			8.0
Total used	4.9			6.3
Parts and service	42.4			41.9
Finance and insurance	100.0			100.0
Total	11.8			11.4
GROSS PROFIT:
New vehicle retail sales	$	6,904		$	9,710		(28.9	)	(2.0	)
Used vehicle retail sales	864			1,814			(52.4	)	(34.3	)
Used vehicle wholesale sales	156			383			(59.3	)	(43.9	)
Total used	1,020			2,197			(53.6	)	(36.0	)
Parts and service	5,911			8,048			(26.6	)	1.3
Finance and insurance	1,638			2,890			(43.3	)	(21.9	)
Total	$	15,473		$	22,845		(32.3	)	(6.6	)
UNITS SOLD:
Retail new vehicles sold	3,197			4,145			(22.9	)
Retail used vehicles sold	966			1,294			(25.3	)
Wholesale used vehicles sold	406			574			(29.3	)
Total used	1,372			1,868			(26.6	)
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	29,543		$	34,485		(14.3	)	18.1
Used vehicle retail	$	19,243		$	23,118		(16.8	)	14.8
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	2,160		$	2,343		(7.8	)	27.1
Used vehicle retail sales	894			1,402			(36.2	)	(12.0	)
Used vehicle wholesale sales	384			667			(42.4	)	(20.7	)
Total used	743			1,176			(36.8	)	(12.8	)
Finance and insurance (per retail unit)	$	393		$	531		(26.0	)	2.1
OTHER: ⁽¹⁾
SG&A expenses	$	14,063		$	21,732		(35.3	)	(10.7	)
SG&A as % revenues	10.7			10.9
SG&A as % gross profit	90.9			95.1
Operating margin %	0.7			0.3
Pretax margin %	—			(0.7		)
INTEREST EXPENSE:
Floorplan interest	$	(502	)	$	(1,632	)	(69.2	)
Floorplan assistance	—			—			—
Net floorplan expense	$	(502	)	$	(1,632	)	(69.2	)
Other interest expense, net	$	(331	)	$	(259	)	27.8



	Six Months Ended June 30,
	2015			2014			% Change		Local Currency % Change
REVENUES:
New vehicle retail sales	$	188,802		$	268,623		(29.7	)	(9.1	)
Used vehicle retail sales	40,673			57,848			(29.7	)	(9.9	)
Used vehicle wholesale sales	4,999			9,830			(49.1	)	(35.2	)
Total used	45,672			67,678			(32.5	)	(13.5	)
Parts and service	27,585			36,838			(25.1	)	(3.0	)
Finance and insurance	3,620			5,115			(29.2	)	(8.7	)
Total	$	265,679		$	378,254		(29.8	)	(9.3	)
GROSS MARGIN %:
New vehicle retail sales	6.9			6.4
Used vehicle retail sales	4.4			6.2
Used vehicle wholesale sales	7.4			8.0
Total used	4.7			6.5
Parts and service	43.2			43.0
Finance and insurance	100.0			100.0
Total	11.6			11.2
GROSS PROFIT:
New vehicle retail sales	$	12,998		$	17,183		(24.4	)	(1.8	)
Used vehicle retail sales	1,795			3,586			(49.9	)	(36.0	)
Used vehicle wholesale sales	369			788			(53.2	)	(40.5	)
Total used	2,164			4,374			(50.5	)	(36.8	)
Parts and service	11,929			15,835			(24.7	)	(2.7	)
Finance and insurance	3,620			5,115			(29.2	)	(8.7	)
Total	$	30,711		$	42,507		(27.8	)	(6.6	)
UNITS SOLD:
Retail new vehicles sold	6,489			8,202			(20.9	)
Retail used vehicles sold	2,158			2,689			(19.7	)
Wholesale used vehicles sold	867			1,247			(30.5	)
Total used	3,025			3,936			(23.1	)
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	29,096		$	32,751		(11.2	)	14.9
Used vehicle retail	$	18,848		$	21,513		(12.4	)	12.3
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	2,003		$	2,095		(4.4	)	24.1
Used vehicle retail sales	832			1,334			(37.6	)	(20.3	)
Used vehicle wholesale sales	426			632			(32.6	)	(14.4	)
Total used	715			1,111			(35.6	)	(17.8	)
Finance and insurance (per retail unit)	$	419		$	470		(10.9	)	15.0
OTHER: ⁽¹⁾
SG&A expenses	$	28,798		$	40,422		(28.8	)	(7.9	)
SG&A as % revenues	10.8			10.7
SG&A as % gross profit	93.8			95.1
Operating margin %	0.3			0.3
Pretax margin %	(0.3		)	(0.7		)
INTEREST EXPENSE:
Floorplan interest	$	(821	)	$	(3,528	)	(76.7	)
Floorplan assistance	—			—			—
Net floorplan expense	$	(821	)	$	(3,528	)	(76.7	)
Other interest expense, net	$	(784	)	$	(58	)	1,251.7
⁽¹⁾ These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for the description of aforementioned adjustments.



Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
(Dollars in thousands, except per unit amounts)

	Three Months Ended June 30,
	2015			2014			% Change		Local Currency % Change
REVENUES:
New vehicle retail sales	$	1,534,262		$	1,466,064		4.7		8.2
Used vehicle retail sales	682,294			577,250			18.2		21.0
Used vehicle wholesale sales	101,512			94,971			6.9		10.5
Total used	783,806			672,221			16.6		19.5
Parts and service	303,193			283,207			7.1		9.8
Finance and insurance	105,219			90,146			16.7		18.0
Total	$	2,726,480		$	2,511,638		8.6		11.7
GROSS MARGIN %:
New vehicle retail sales	5.0			5.5
Used vehicle retail sales	6.8			7.9
Used vehicle wholesale sales	(0.9		)	1.3
Total used	5.8			7.0
Parts and service	54.5			53.4
Finance and insurance	100.0			100.0
Total	14.4			14.7
GROSS PROFIT:
New vehicle retail sales	$	76,130		$	80,846		(5.8	)	(1.4	)
Used vehicle retail sales	46,059			45,666			0.9		2.6
Used vehicle wholesale sales	(933		)	1,241			(175.2	)	(175.2	)
Total used	45,126			46,907			(3.8	)	(2.1	)
Parts and service	165,098			151,249			9.2		11.6
Finance and insurance	105,219			90,146			16.7		18.0
Total	$	391,573		$	369,148		6.1		8.6
UNITS SOLD:
Retail new vehicles sold	44,765			42,456			5.4
Retail used vehicles sold	31,439			26,721			17.7
Wholesale used vehicles sold	14,627			13,230			10.6
Total used	46,066			39,951			15.3
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	34,274		$	34,531		(0.7	)	2.6
Used vehicle retail	$	21,702		$	21,603		0.5		2.8
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,701		$	1,904		(10.7	)	(6.5	)
Used vehicle retail sales	1,465			1,709			(14.3	)	(12.8	)
Used vehicle wholesale sales	(64		)	94			(168.1	)	(168.0	)
Total used	980			1,174			(16.5	)	(15.1	)
Finance and insurance (per retail unit)	$	1,381		$	1,303		6.0		7.2
OTHER: ⁽¹⁾
SG&A expenses	$	279,460		$	269,946		3.5		6.5
SG&A as % revenues	10.2			10.7
SG&A as % gross profit	71.4			73.1
Operating margin %	3.7			3.5
Pretax margin %	2.8			2.6
INTEREST EXPENSE:
Floorplan interest	$	(10,015	)	$	(10,329	)	(3.0	)
Floorplan assistance	12,781			11,534			10.8
Net floorplan income	$	2,766		$	1,205		129.5
Other interest expense, net	$	(14,228	)	$	(12,567	)	13.2



	Six Months Ended June 30,
	2015			2014			% Change		Local Currency % Change
REVENUES:
New vehicle retail sales	$	2,866,986		$	2,734,900		4.8		8.0
Used vehicle retail sales	1,305,487			1,127,147			15.8		18.4
Used vehicle wholesale sales	201,704			184,144			9.5		13.1
Total used	1,507,191			1,311,291			14.9		17.6
Parts and service	585,382			552,524			5.9		8.3
Finance and insurance	199,775			173,786			15.0		16.2
Total	$	5,159,334		$	4,772,501		8.1		11.0
GROSS MARGIN %:
New vehicle retail sales	5.1			5.4
Used vehicle retail sales	7.1			7.8
Used vehicle wholesale sales	0.9			2.4
Total used	6.2			7.1
Parts and service	54.0			53.0
Finance and insurance	100.0			100.0
Total	14.6			14.8
GROSS PROFIT:
New vehicle retail sales	$	145,861		$	147,752		(1.3	)	2.7
Used vehicle retail sales	92,180			88,467			4.2		5.8
Used vehicle wholesale sales	1,746			4,353			(59.9	)	(58.1	)
Total used	93,926			92,820			1.2		2.8
Parts and service	315,895			292,912			7.8		9.9
Finance and insurance	199,775			173,786			15.0		16.2
Total	$	755,457		$	707,270		6.8		9.0
UNITS SOLD:
Retail new vehicles sold	84,004			80,205			4.7
Retail used vehicles sold	61,422			53,598			14.6
Wholesale used vehicles sold	28,567			26,014			9.8
Total used	89,989			79,612			13.0
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	34,129		$	34,099		0.1		3.1
Used vehicle retail	$	21,254		$	21,030		1.1		3.3
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,736		$	1,842		(5.8	)	(2.0	)
Used vehicle retail sales	1,501			1,651			(9.1	)	(7.7	)
Used vehicle wholesale sales	61			167			(63.5	)	(61.9	)
Total used	1,044			1,166			(10.5	)	(9.0	)
Finance and insurance (per retail unit)	$	1,374		$	1,299		5.8		6.9
OTHER: ⁽¹⁾
SG&A expenses	$	550,930		$	527,504		4.4		7.0
SG&A as % revenues	10.7			11.1
SG&A as % gross profit	72.9			74.6
Operating margin %	3.5			3.3
Pretax margin %	2.6			2.4
INTEREST EXPENSE:
Floorplan interest	$	(19,362	)	$	(21,242	)	(8.9	)
Floorplan assistance	23,542			21,351			10.3
Net floorplan income	$	4,180		$	109		3,734.9
Other interest expense, net	$	(28,139	)	$	(23,080	)	21.9
⁽¹⁾ These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.



Group 1 Automotive, Inc.
Additional Information - Same Store U.S. ⁽¹⁾
(Unaudited)
(Dollars in thousands, except per unit amounts)

	Three Months Ended June 30,
	2015			2014		% Change
REVENUES:
New vehicle retail sales	$	1,186,659		$	1,128,008	5.2
Used vehicle retail sales	527,586			454,384		16.1
Used vehicle wholesale sales	65,582			65,332		0.4
Total used	593,168			519,716		14.1
Parts and service	249,437			230,988		8.0
Finance and insurance	91,104			80,567		13.1
Total	$	2,120,368		$	1,959,279	8.2
GROSS MARGIN %:
New vehicle retail sales	4.5			5.2
Used vehicle retail sales	7.1			8.3
Used vehicle wholesale sales	(0.2		)	1.7
Total used	6.3			7.5
Parts and service	54.7			54.0
Finance and insurance	100.0			100.0
Total	15.0			15.5
GROSS PROFIT:
New vehicle retail sales	$	53,742		$	58,636	(8.3	)
Used vehicle retail sales	37,374			37,686		(0.8	)
Used vehicle wholesale sales	(134		)	1,108		(112.1	)
Total used	37,240			38,794		(4.0	)
Parts and service	136,362			124,758		9.3
Finance and insurance	91,104			80,567		13.1
Total	$	318,448		$	302,755	5.2
UNITS SOLD:
Retail new vehicles sold	34,657			33,155		4.5
Retail used vehicles sold	25,086			21,973		14.2
Wholesale used vehicles sold	10,472			10,123		3.4
Total used	35,558			32,096		10.8
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	34,240		$	34,022	0.6
Used vehicle retail	$	21,031		$	20,679	1.7
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,551		$	1,769	(12.3	)
Used vehicle retail sales	1,490			1,715		(13.1	)
Used vehicle wholesale sales	(13		)	109		(111.9	)
Total used	1,047			1,209		(13.4	)
Finance and insurance (per retail unit)	$	1,525		$	1,461	4.4
OTHER: ⁽²⁾
SG&A expenses	$	221,615		$	213,316	3.9
SG&A as % revenues	10.5			10.9
SG&A as % gross profit	69.6			70.5
Operating margin %	4.1			4.1



	Six Months Ended June 30,
	2015		2014		% Change
REVENUES:
New vehicle retail sales	$	2,205,332	$	2,092,306	5.4
Used vehicle retail sales	997,217		887,125		12.4
Used vehicle wholesale sales	130,352		125,494		3.9
Total used	1,127,569		1,012,619		11.4
Parts and service	479,800		449,341		6.8
Finance and insurance	172,181		155,497		10.7
Total	$	3,984,882	$	3,709,763	7.4
GROSS MARGIN %:
New vehicle retail sales	4.7		5.1
Used vehicle retail sales	7.5		8.4
Used vehicle wholesale sales	1.4		2.7
Total used	6.8		7.7
Parts and service	54.1		53.5
Finance and insurance	100.0		100.0
Total	15.3		15.7
GROSS PROFIT:
New vehicle retail sales	$	102,648	$	107,195	(4.2	)
Used vehicle retail sales	74,536		74,351		0.2
Used vehicle wholesale sales	1,886		3,405		(44.6	)
Total used	76,422		77,756		(1.7	)
Parts and service	259,483		240,464		7.9
Finance and insurance	172,181		155,497		10.7
Total	$	610,734	$	580,912	5.1
UNITS SOLD:
Retail new vehicles sold	64,336		61,869		4.0
Retail used vehicles sold	48,443		44,034		10.0
Wholesale used vehicles sold	20,308		19,584		3.7
Total used	68,751		63,618		8.1
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	34,278	$	33,818	1.4
Used vehicle retail	$	20,585	$	20,146	2.2
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,595	$	1,733	(8.0	)
Used vehicle retail sales	1,539		1,688		(8.8	)
Used vehicle wholesale sales	93		174		(46.6	)
Total used	1,112		1,222		(9.0	)
Finance and insurance (per retail unit)	$	1,527	$	1,468	4.0
OTHER:⁽²⁾
SG&A expenses	$	436,289	$	416,686	4.7
SG&A as % revenues	10.9		11.2
SG&A as % gross profit	71.4		71.7
Operating margin %	3.9		4.0

⁽¹⁾ Same Store amounts include the results for the identical months in each period presented in the comparison, commencing with the first full month we owned the dealership and, in the case of dispositions, ending with the last full month we owned it. Same Store results also include the activities of our corporate office.⁽²⁾ These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.



Group 1 Automotive, Inc.
Additional Information - Same Store U.K. ⁽¹⁾
(Unaudited)
(Dollars in thousands, except per unit amounts)

	Three Months Ended June 30,
	2015			2014			% Change		Local Currency % Change
REVENUES:
New vehicle retail sales	$	134,107		$	131,804		1.7		11.8
Used vehicle retail sales	75,449			73,260			3.0		13.2
Used vehicle wholesale sales	20,062			21,549			(6.9	)	2.4
Total used	95,511			94,809			0.7		10.7
Parts and service	19,723			20,206			(2.4	)	7.2
Finance and insurance	4,934			4,500			9.6		20.3
Total	$	254,275		$	251,319		1.2		11.2
GROSS MARGIN %:
New vehicle retail sales	6.0			6.9
Used vehicle retail sales	5.3			6.7
Used vehicle wholesale sales	(2.5		)	(1.3		)
Total used	3.7			4.9
Parts and service	57.6			56.1
Finance and insurance	100.0			100.0
Total	10.9			11.7
GROSS PROFIT:
New vehicle retail sales	$	8,010		$	9,041		(11.4	)	(2.9	)
Used vehicle retail sales	4,029			4,930			(18.3	)	(10.1	)
Used vehicle wholesale sales	(497		)	(281		)	76.9		92.8
Total used	3,532			4,649			(24.0	)	(16.3	)
Parts and service	11,359			11,331			0.2		10.1
Finance and insurance	4,934			4,500			9.6		20.3
Total	$	27,835		$	29,521		(5.7	)	3.5
UNITS SOLD:
Retail new vehicles sold	4,025			3,626			11.0
Retail used vehicles sold	3,104			2,720			14.1
Wholesale used vehicles sold	2,441			2,195			11.2
Total used	5,545			4,915			12.8
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	33,319		$	36,350		(8.3	)	0.7
Used vehicle retail	$	24,307		$	26,934		(9.8	)	(0.8	)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,990		$	2,493		(20.2	)	(12.5	)
Used vehicle retail sales	1,298			1,813			(28.4	)	(21.2	)
Used vehicle wholesale sales	(204		)	(128		)	59.4		73.3
Total used	637			946			(32.7	)	(25.8	)
Finance and insurance (per retail unit)	$	692		$	709		(2.4	)	7.1
OTHER:
SG&A expenses	$	21,689		$	22,314		(2.8	)	6.8
SG&A as % revenues	8.5			8.9
SG&A as % gross profit	77.9			75.6
Operating margin %	2.1			2.5



	Six Months Ended June 30,
	2015			2014		% Change		Local Currency % Change
REVENUES:
New vehicle retail sales	$	258,169		$	262,406	(1.6	)	8.1
Used vehicle retail sales	148,512			144,736		2.6		12.4
Used vehicle wholesale sales	40,864			41,194		(0.8	)	8.8
Total used	189,376			185,930		1.9		11.6
Parts and service	39,904			41,566		(4.0	)	5.1
Finance and insurance	9,754			9,118		7.0		17.3
Total	$	497,203		$	499,020	(0.4	)	9.3
GROSS MARGIN %:
New vehicle retail sales	6.3			6.7
Used vehicle retail sales	5.3			5.9
Used vehicle wholesale sales	(0.3		)	0.4
Total used	4.1			4.7
Parts and service	56.6			55.1
Finance and insurance	100.0			100.0
Total	11.3			11.7
GROSS PROFIT:
New vehicle retail sales	$	16,136		$	17,540	(8.0	)	1.2
Used vehicle retail sales	7,819			8,518		(8.2	)	0.8
Used vehicle wholesale sales	(120		)	170		(170.6	)	(173.9	)
Total used	7,699			8,688		(11.4	)	(2.7	)
Parts and service	22,582			22,904		(1.4	)	8.0
Finance and insurance	9,754			9,118		7.0		17.3
Total	$	56,171		$	58,250	(3.6	)	5.8
UNITS SOLD:
Retail new vehicles sold	7,844			7,371		6.4
Retail used vehicles sold	6,149			5,459		12.6
Wholesale used vehicles sold	4,818			4,356		10.6
Total used	10,967			9,815		11.7
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	32,913		$	35,600	(7.5	)	1.6
Used vehicle retail	$	24,152		$	26,513	(8.9	)	(0.2	)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	2,057		$	2,380	(13.6	)	(4.9	)
Used vehicle retail sales	1,272			1,560		(18.5	)	(10.5	)
Used vehicle wholesale sales	(25		)	39		(164.1	)	(166.8	)
Total used	702			885		(20.7	)	(12.9	)
Finance and insurance (per retail unit)	$	697		$	711	(2.0	)	7.6
OTHER:
SG&A expenses	$	43,313		$	44,786	(3.3	)	6.0
SG&A as % revenues	8.7			9.0
SG&A as % gross profit	77.1			76.9
Operating margin %	2.3			2.4



Group 1 Automotive, Inc.
Additional Information - Same Store Brazil ⁽¹⁾
(Unaudited)
(Dollars in thousands, except per unit amounts)

	Three Months Ended June 30,
	2015		2014		% Change		Local Currency % Change
REVENUES:
New vehicle retail sales	$	89,804	$	133,825	(32.9	)	(7.5	)
Used vehicle retail sales	18,492		28,564		(35.3	)	(10.7	)
Used vehicle wholesale sales	2,240		3,848		(41.8	)	(19.8	)
Total used	20,732		32,412		(36.0	)	(11.8	)
Parts and service	13,794		16,927		(18.5	)	12.5
Finance and insurance	1,612		2,593		(37.8	)	(14.3	)
Total	$	125,942	$	185,757	(32.2	)	(6.5	)
GROSS MARGIN %:
New vehicle retail sales	7.3		6.5
Used vehicle retail sales	4.7		6.0
Used vehicle wholesale sales	7.0		7.6
Total used	4.9		6.2
Parts and service	42.5		43.2
Finance and insurance	100.0		100.0
Total	11.9		11.1
GROSS PROFIT:
New vehicle retail sales	$	6,513	$	8,712	(25.2	)	3.1
Used vehicle retail sales	862		1,727		(50.1	)	(31.3	)
Used vehicle wholesale sales	157		294		(46.6	)	(26.7	)
Total used	1,019		2,021		(49.6	)	(30.6	)
Parts and service	5,864		7,307		(19.7	)	10.7
Finance and insurance	1,612		2,593		(37.8	)	(14.3	)
Total	$	15,008	$	20,633	(27.3	)	0.3
UNITS SOLD:
Retail new vehicles sold	3,110		3,688		(15.7	)
Retail used vehicles sold	959		1,197		(19.9	)
Wholesale used vehicles sold	404		461		(12.4	)
Total used	1,363		1,658		(17.8	)
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	28,876	$	36,287	(20.4	)	9.7
Used vehicle retail	$	19,283	$	23,863	(19.2	)	11.4
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	2,094	$	2,362	(11.3	)	22.2
Used vehicle retail sales	899		1,443		(37.7	)	(14.2	)
Used vehicle wholesale sales	389		638		(39.0	)	(16.3	)
Total used	748		1,219		(38.6	)	(15.6	)
Finance and insurance (per retail unit)	$	396	$	531	(25.4	)	2.9
OTHER: ⁽²⁾
SG&A expenses	$	13,569	$	19,133	(29.1	)	(2.2	)
SG&A as % revenues	10.8		10.3
SG&A as % gross profit	90.4		92.7
Operating margin %	0.7		0.5



	Six Months Ended June 30,
	2015		2014		% Change		Local Currency % Change
REVENUES:
New vehicle retail sales	$	181,959	$	251,039	(27.5	)	(6.4	)
Used vehicle retail sales	40,534		54,748		(26.0	)	(5.1	)
Used vehicle wholesale sales	4,974		7,983		(37.7	)	(20.7	)
Total used	45,508		62,731		(27.5	)	(7.1	)
Parts and service	27,334		32,662		(16.3	)	8.3
Finance and insurance	3,578		4,569		(21.7	)	1.0
Total	$	258,379	$	351,001	(26.4	)	(5.0	)
GROSS MARGIN %:
New vehicle retail sales	6.9		6.1
Used vehicle retail sales	4.4		6.1
Used vehicle wholesale sales	7.4		7.7
Total used	4.8		6.3
Parts and service	43.3		44.3
Finance and insurance	100.0		100.0
Total	11.6		10.9
GROSS PROFIT:
New vehicle retail sales	$	12,514	$	15,389	(18.7	)	5.5
Used vehicle retail sales	1,802		3,367		(46.5	)	(31.6	)
Used vehicle wholesale sales	370		612		(39.5	)	(23.3	)
Total used	2,172		3,979		(45.4	)	(30.4	)
Parts and service	11,829		14,467		(18.2	)	5.6
Finance and insurance	3,578		4,569		(21.7	)	1.0
Total	$	30,093	$	38,404	(21.6	)	1.3
UNITS SOLD:
Retail new vehicles sold	6,363		7,281		(12.6	)
Retail used vehicles sold	2,151		2,458		(12.5	)
Wholesale used vehicles sold	864		989		(12.6	)
Total used	3,015		3,447		(12.5	)
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	28,596	$	34,479	(17.1	)	7.1
Used vehicle retail	$	18,844	$	22,273	(15.4	)	8.5
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,967	$	2,114	(7.0	)	20.7
Used vehicle retail sales	838		1,370		(38.8	)	(21.9	)
Used vehicle wholesale sales	428		619		(30.9	)	(12.2	)
Total used	720		1,154		(37.6	)	(20.4	)
Finance and insurance (per retail unit)	$	420	$	469	(10.4	)	15.5
OTHER:⁽²⁾
SG&A expenses	$	27,519	$	35,460	(22.4	)	0.4
SG&A as % revenues	10.7		10.1
SG&A as % gross profit	91.4		92.3
Operating margin %	0.6		0.6



Group 1 Automotive, Inc.
Additional Information - Same Store Consolidated ⁽¹⁾
(Unaudited)
(Dollars in thousands, except per unit amounts)

	Three Months Ended June 30,
	2015			2014		% Change		Local Currency % Change
REVENUES:
New vehicle retail sales	$	1,410,570		$	1,393,637	1.2		4.6
Used vehicle retail sales	621,527			556,208		11.7		14.3
Used vehicle wholesale sales	87,884			90,729		(3.1	)	—
Total used	709,411			646,937		9.7		12.3
Parts and service	282,954			268,121		5.5		8.2
Finance and insurance	97,650			87,660		11.4		12.6
Total	$	2,500,585		$	2,396,355	4.3		7.4
GROSS MARGIN %:
New vehicle retail sales	4.8			5.5
Used vehicle retail sales	6.8			8.0
Used vehicle wholesale sales	(0.5		)	1.2
Total used	5.9			7.0
Parts and service	54.3			53.5
Finance and insurance	100.0			100.0
Total	14.4			14.7
GROSS PROFIT:
New vehicle retail sales	$	68,265		$	76,389	(10.6	)	(6.4	)
Used vehicle retail sales	42,265			44,343		(4.7	)	(3.0	)
Used vehicle wholesale sales	(474		)	1,121		(142.3	)	(141.0	)
Total used	41,791			45,464		(8.1	)	(6.4	)
Parts and service	153,585			143,396		7.1		9.4
Finance and insurance	97,650			87,660		11.4		12.6
Total	$	361,291		$	352,909	2.4		4.8
UNITS SOLD:
Retail new vehicles sold	41,792			40,469		3.3
Retail used vehicles sold	29,149			25,890		12.6
Wholesale used vehicles sold	13,317			12,779		4.2
Total used	42,466			38,669		9.8
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	33,752		$	34,437	(2.0	)	1.3
Used vehicle retail	$	21,322		$	21,484	(0.7	)	1.6
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,633		$	1,888	(13.5	)	(9.4	)
Used vehicle retail sales	1,450			1,713		(15.4	)	(13.9	)
Used vehicle wholesale sales	(36		)	88		(140.9	)	(139.4	)
Total used	984			1,176		(16.3	)	(14.8	)
Finance and insurance (per retail unit)	$	1,376		$	1,321	4.2		5.4
OTHER: ⁽²⁾
SG&A expenses	$	256,874		$	254,764	0.8		3.7
SG&A as % revenues	10.3			10.6
SG&A as % gross profit	71.1			72.2
Operating margin %	3.7			3.7



	Six Months Ended June 30,
	2015		2014		% Change		Local Currency % Change
REVENUES:
New vehicle retail sales	$	2,645,460	$	2,605,751	1.5		4.5
Used vehicle retail sales	1,186,263		1,086,609		9.2		11.5
Used vehicle wholesale sales	176,190		174,671		0.9		3.9
Total used	1,362,453		1,261,280		8.0		10.5
Parts and service	547,038		523,569		4.5		6.7
Finance and insurance	185,513		169,184		9.7		10.8
Total	$	4,740,464	$	4,559,784	4.0		6.7
GROSS MARGIN %:
New vehicle retail sales	5.0		5.4
Used vehicle retail sales	7.1		7.9
Used vehicle wholesale sales	1.2		2.4
Total used	6.3		7.2
Parts and service	53.7		53.1
Finance and insurance	100.0		100.0
Total	14.7		14.9
GROSS PROFIT:
New vehicle retail sales	$	131,298	$	140,124	(6.3	)	(2.5	)
Used vehicle retail sales	84,157		86,236		(2.4	)	(0.9	)
Used vehicle wholesale sales	2,136		4,187		(49.0	)	(46.8	)
Total used	86,293		90,423		(4.6	)	(3.1	)
Parts and service	293,894		277,835		5.8		7.8
Finance and insurance	185,513		169,184		9.7		10.8
Total	$	696,998	$	677,566	2.9		5.0
UNITS SOLD:
Retail new vehicles sold	78,543		76,521		2.6
Retail used vehicles sold	56,743		51,951		9.2
Wholesale used vehicles sold	25,990		24,929		4.3
Total used	82,733		76,880		7.6
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	33,682	$	34,053	(1.1	)	1.8
Used vehicle retail	$	20,906	$	20,916	—		2.1
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,672	$	1,831	(8.7	)	(5.0	)
Used vehicle retail sales	1,483		1,660		(10.7	)	(9.3	)
Used vehicle wholesale sales	82		168		(51.2	)	(48.9	)
Total used	1,043		1,176		(11.3	)	(9.9	)
Finance and insurance (per retail unit)	$	1,371	$	1,317	4.1		5.2
OTHER: ⁽²⁾
SG&A expenses	$	507,121	$	496,933	2.1		4.5
SG&A as % revenues	10.7		10.9
SG&A as % gross profit	72.8		73.3
Operating margin %	3.5		3.5

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



Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - U.S.
(Unaudited)
(Dollars in thousands)

		Three Months Ended June 30,
		2015			2014			% Change
SG&A RECONCILIATION:
	As reported	$	239,863		$	227,506		5.4
	Pre-tax adjustments:
	Catastrophic events	(951		)	(1,676		)
	Gain (loss) on real estate and dealership transactions	1,052			510
	Legal settlements	(1,000		)	(442		)
	Adjusted SG&A ⁽¹⁾	$	238,964		$	225,898		5.8
SG&A AS % REVENUES:
	Unadjusted	10.5			11.0
	Adjusted ⁽¹⁾	10.4			11.0
SG&A AS % GROSS PROFIT:
	Unadjusted	70.1			71.8
	Adjusted ⁽¹⁾	69.8			71.3
OPERATING MARGIN %:
	Unadjusted	4.0			3.8
	Adjusted ^(1),(2)	4.1			4.0
PRETAX MARGIN %:
	Unadjusted	3.0			1.7
	Adjusted ^(1),(3)	3.1			3.0
SAME STORE SG&A RECONCILIATION:
	As reported	$	223,930		$	215,434		3.9
	Pre-tax adjustments:
	Catastrophic events	(951		)	(1,676		)
	Gain (loss) on real estate and dealership transactions	(364		)	—
	Legal settlements	(1,000		)	(442		)
	Adjusted Same Store SG&A ⁽¹⁾	$	221,615		$	213,316		3.9
SAME STORE SG&A AS % REVENUES:
	Unadjusted	10.6			11.0
	Adjusted ⁽¹⁾	10.5			10.9
SAME STORE SG&A AS % GROSS PROFIT:
	Unadjusted	70.3			71.2
	Adjusted ⁽¹⁾	69.6			70.5
SAME STORE OPERATING MARGIN %:
	Unadjusted	4.0			3.9
	Adjusted ^(1),(4)	4.1			4.1



		Six Months Ended June 30,
		2015			2014			% Change
SG&A RECONCILIATION:
	As reported	$	469,836		$	443,902		5.8
	Pre-tax adjustments:
	Catastrophic events	(951		)	(1,676		)
	Gain (loss) on real estate and dealership transactions	1,052			510
	Legal settlements	(1,000		)	(442		)
	Adjusted SG&A ⁽¹⁾	$	468,937		$	442,294		6.0
SG&A AS % REVENUES:
	Unadjusted	11.0			11.4
	Adjusted ⁽¹⁾	10.9			11.4
SG&A AS % GROSS PROFIT:
	Unadjusted	71.5			73.2
	Adjusted ⁽¹⁾	71.4			72.9
OPERATING MARGIN %:
	Unadjusted	3.9			3.7
	Adjusted ^(1),(2)	3.9			3.8
PRETAX MARGIN %:
	Unadjusted	2.9			2.1
	Adjusted ^(1),(3)	2.9			2.8
SAME STORE SG&A RECONCILIATION:
	As reported	$	438,604		$	418,804		4.7
	Pre-tax adjustments:
	Catastrophic events	(951		)	(1,676		)
	Gain (loss) on real estate and dealership transactions	(364		)	—
	Legal settlements	(1,000		)	(442		)
	Adjusted Same Store SG&A ⁽¹⁾	$	436,289		$	416,686		4.7
SAME STORE SG&A AS % REVENUES:
	Unadjusted	11.0			11.3
	Adjusted ⁽¹⁾	10.9			11.2
SAME STORE SG&A AS % GROSS PROFIT:
	Unadjusted	71.8			72.1
	Adjusted ⁽¹⁾	71.4			71.7
SAME STORE OPERATING MARGIN %:
	Unadjusted	3.8			3.9
	Adjusted ^(1),(4)	3.9			4.0

(1)	We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items. These adjusted measures are not measures of financial performance under GAAP. As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures. We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations.
(2)	Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $498 for the three and six months ended June 30, 2015 and $1,721 for the three and six months ended June 30, 2014.
(3)	Excludes the impact of SG&A reconciling items above, as well as loss on redemption of long-term debt of $23,614 for the three and six months ended June 30, 2014, non-cash asset impairment charges of $498 for the three and six months ended June 30, 2015, and non-cash asset impairment charges of $1,721 for the three and six months ended June 30, 2014.
(4)	Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $498 for the three and six months ended June 30, 2015 and $1,721 for the three and six months ended June 30, 2014.



Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - U.K.
(Unaudited)
(Dollars in thousands)

		Three Months Ended June 30,
		2015			2014		% Change
SG&A RECONCILIATION:
	As reported	$	26,641		$	22,316	19.4
	Pre-tax adjustments:
	Severance costs	(208		)	—
	Adjusted SG&A ⁽¹⁾	$	26,433		$	22,316	18.4
SG&A AS % REVENUES:
	Unadjusted	8.6			8.9
	Adjusted ⁽¹⁾	8.6			8.9
SG&A AS % GROSS PROFIT:
	Unadjusted	78.5			75.6
	Adjusted ⁽¹⁾	77.9			75.6
OPERATING MARGIN %:
	Unadjusted	2.0			2.5
	Adjusted ^(1),(2)	2.1			2.5
PRETAX MARGIN %:
	Unadjusted	1.6			2.2
	Adjusted ^(1),(2)	1.6			2.2



		Six Months Ended June 30,
		2015			2014		% Change
SG&A RECONCILIATION:
	As reported	$	53,403		$	44,788	19.2
	Pre-tax adjustments:
	Severance costs	(208		)	—
	Adjusted SG&A ⁽¹⁾	$	53,195		$	44,788	18.8
SG&A AS % REVENUES:
	Unadjusted	8.8			9.0
	Adjusted ⁽¹⁾	8.8			9.0
SG&A AS % GROSS PROFIT:
	Unadjusted	78.4			76.9
	Adjusted ⁽¹⁾	78.1			76.9
OPERATING MARGIN %:
	Unadjusted	2.1			2.4
	Adjusted ^(1),(2)	2.1			2.4
PRETAX MARGIN %:
	Unadjusted	1.6			2.0
	Adjusted ^(1),(2)	1.7			2.0

(1)	We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items. These adjusted measures are not measures of financial performance under GAAP. As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures. We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations.
(2)	Excludes the impact of SG&A reconciling item above.



Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - Brazil
(Unaudited)
(Dollars in thousands)

		Three Months Ended June 30,
		2015			2014			% Change
SG&A RECONCILIATION:
	As reported	$	14,063		$	22,148		(36.5	)
	Pre-tax adjustments:
	Foreign transaction tax	—			(416		)
	Adjusted SG&A ⁽¹⁾	$	14,063		$	21,732		(35.3	)
SG&A AS % REVENUES:
	Unadjusted	10.7			11.1
	Adjusted ⁽¹⁾	10.7			10.9
SG&A AS % GROSS PROFIT:
	Unadjusted	90.9			96.9
	Adjusted ⁽¹⁾	90.9			95.1
OPERATING MARGIN %
	Unadjusted	0.3			0.1
	Adjusted ^(1),(2)	0.7			0.3
PRETAX MARGIN %:
	Unadjusted	(0.4		)	(0.9		)
	Adjusted ^(1),(2)	—			(0.7		)
SAME STORE SG&A RECONCILIATION:
	As reported	$	13,569		$	19,549		(30.6	)
	Pre-tax adjustments:
	Foreign transaction tax	—			(416		)
	Adjusted Same Store SG&A ⁽¹⁾	$	13,569		$	19,133		(29.1	)
SAME STORE SG&A AS % REVENUES:
	Unadjusted	10.8			10.5
	Adjusted ⁽¹⁾	10.8			10.3
SAME STORE SG&A AS % GROSS PROFIT:
	Unadjusted	90.4			94.7
	Adjusted ⁽¹⁾	90.4			92.7
SAME STORE OPERATING MARGIN %:
	Unadjusted	0.7			0.3
	Adjusted ^(1),(3)	0.7			0.5



		Six Months Ended June 30,
		2015			2014			% Change
SG&A RECONCILIATION:
	As reported	$	28,798		$	40,838		(29.5	)
	Pre-tax adjustments:
	Foreign transaction tax	—			(416		)
	Adjusted SG&A ⁽¹⁾	$	28,798		$	40,422		(28.8	)
SG&A AS % REVENUES:
	Unadjusted	10.8			10.8
	Adjusted ⁽¹⁾	10.8			10.7
SG&A AS % GROSS PROFIT:
	Unadjusted	93.8			96.1
	Adjusted ⁽¹⁾	93.8			95.1
OPERATING MARGIN %:
	Unadjusted	0.1			0.1
	Adjusted ^(1),(2)	0.3			0.3
PRETAX MARGIN %:
	Unadjusted	(0.5		)	(0.8		)
	Adjusted ^(1),(2)	(0.3		)	(0.7		)
SAME STORE SG&A RECONCILIATION:
	As reported	$	27,519		$	35,876		(23.3	)
	Pre-tax adjustments:
	Foreign transaction tax	—			(416		)
	Adjusted Same Store SG&A ⁽¹⁾	$	27,519		$	35,460		(22.4	)
SAME STORE SG&A AS % REVENUES:
	Unadjusted	10.7			10.2
	Adjusted ⁽¹⁾	10.7			10.1
SAME STORE SG&A AS % GROSS PROFIT:
	Unadjusted	91.4			93.4
	Adjusted ⁽¹⁾	91.4			92.3
SAME STORE OPERATING MARGIN %:
	Unadjusted	0.6			0.4
	Adjusted ^(1),(3)	0.6			0.6

(1)	We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items. These adjusted measures are not measures of financial performance under GAAP. As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures. We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations.
(2)	Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $541 for the three and six months ended June 30, 2015.
(3)	Excludes the impact of SG&A reconciling items above.



Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - Consolidated
(Unaudited)
(Dollars in thousands, except per share amounts)
		Three Months Ended June 30,
		2015			2014			% Change
NET INCOME RECONCILIATION:
	As reported	$	46,310		$	16,862		174.6
	After-tax adjustments:
	Catastrophic events⁽⁵⁾	593			1,039
	(Gain) loss on real estate and dealership transactions⁽⁶⁾	(601		)	(316		)
	Severance costs⁽⁷⁾	167			—
	Legal settlements ⁽⁸⁾	610			274
	Foreign transaction tax ⁽⁹⁾	—			274
	Non-cash asset impairment⁽¹⁰⁾	848			1,067
	Loss on extinguishment of long-term debt⁽¹¹⁾	—			20,778
	Adjusted net income ⁽¹⁾	$	47,927		$	39,978		19.9
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION:
	Adjusted net income	$	47,927		$	39,978		19.9
	Less: Adjusted earnings allocated to participating securities	1,855			1,456			27.4
	Adjusted net income available to diluted common shares	$	46,072		$	38,522		19.6
DILUTED INCOME PER COMMON SHARE RECONCILIATION:
	As reported	$	1.91		$	0.62		208.1
	After-tax adjustments:
	Catastrophic events	0.02			0.04
	Gain (loss) on real estate and dealership transactions	(0.03		)	(0.01		)
	Severance costs	0.01			—
	Legal settlements	0.03			0.01
	Foreign transaction tax	—			0.01
	Non-cash asset impairment	0.04			0.04
	Loss on extinguishment of long-term debt	—			0.76
	Adjusted diluted income per share ⁽¹⁾	$	1.98		$	1.47		34.7
SG&A RECONCILIATION:
	As reported	$	280,567		$	271,970		3.2
	Pre-tax adjustments:
	Catastrophic events	(951		)	(1,676		)
	Gain (loss) on real estate and dealership transactions	1,052			510
	Severance costs	(208		)	—
	Legal settlements	(1,000		)	(442		)
	Foreign transaction tax	—			(416		)
	Adjusted SG&A ⁽¹⁾	$	279,460		$	269,946		3.5
SG&A AS % REVENUES:
	Unadjusted	10.3			10.8
	Adjusted ⁽¹⁾	10.2			10.7
SG&A AS % GROSS PROFIT:
	Unadjusted	71.7			73.7
	Adjusted ⁽¹⁾	71.4			73.1



OPERATING MARGIN %:
	Unadjusted	3.6			3.4
	Adjusted ^(1),(2)	3.7			3.5
PRETAX MARGIN %:
	Unadjusted	2.7			1.5
	Adjusted ^(1),(3)	2.8			2.6
SAME STORE SG&A RECONCILIATION:
	As reported	$	259,189		$	257,298		0.7
	Pre-tax adjustments:
	Catastrophic events	(951		)	(1,676		)
	Gain (loss) on real estate and dealership transactions	(364		)	—
	Legal settlements	(1,000		)	(442		)
	Foreign transaction tax	—			(416		)
	Adjusted Same Store SG&A ⁽¹⁾	$	256,874		$	254,764		0.8
SAME STORE SG&A AS % REVENUES:
	Unadjusted	10.4			10.7
	Adjusted⁽¹⁾	10.3			10.6
SAME STORE SG&A AS % GROSS PROFIT:
	Unadjusted	71.7			72.9
	Adjusted⁽¹⁾	71.1			72.2
SAME STORE OPERATING MARGIN %:
	Unadjusted	3.6			3.5
	Adjusted^(1),(4)	3.7			3.7



		Six Months Ended June 30,
		2015			2014			% Change
NET INCOME RECONCILIATION:
	As reported	$	82,124		$	48,165		70.5
	After-tax adjustments:
	Catastrophic events⁽⁵⁾	593			1,039
	(Gain) loss on real estate and dealership transactions⁽⁶⁾	(601		)	(316		)
	Severance costs⁽⁷⁾	167			—
	Legal settlements ⁽⁸⁾	610			274
	Foreign transaction tax⁽⁹⁾	—			274
	Non-cash asset impairment⁽¹⁰⁾	848			1,067
	Loss on extinguishment of long-term debt⁽¹¹⁾	—			20,778
	Adjusted net income ⁽¹⁾	$	83,741		$	71,281		17.5
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION:
	Adjusted net income	$	83,741		$	71,281		17.5
	Less: Adjusted earnings allocated to participating securities	3,238			2,613			23.9
	Adjusted net income available to diluted common shares	$	80,503		$	68,668		17.2
DILUTED INCOME PER COMMON SHARE RECONCILIATION:
	As reported	$	3.38		$	1.80		87.8
	After-tax adjustments:
	Catastrophic events	0.02			0.04
	Gain (loss) on real estate and dealership transactions	(0.02		)	(0.01		)
	Severance costs	0.01			—
	Legal settlements	0.02			0.01
	Foreign transaction tax	—			0.01
	Non-cash asset impairment	0.03			0.04
	Loss on extinguishment of long-term debt	—			0.77
	Adjusted diluted income per share ⁽¹⁾	$	3.44		$	2.66		29.3
SG&A RECONCILIATION:
	As reported	$	552,037		$	529,528		4.3
	Pre-tax adjustments:
	Catastrophic events	(951		)	(1,676		)
	Gain (loss) on real estate and dealership transactions	1,052			510
	Severance costs	(208		)	—
	Legal settlements	(1,000		)	(442		)
	Foreign transaction tax	—			(416		)
	Adjusted SG&A ⁽¹⁾	$	550,930		$	527,504		4.4
SG&A AS % REVENUES:
	Unadjusted	10.7			11.1
	Adjusted ⁽¹⁾	10.7			11.1
SG&A AS % GROSS PROFIT:
	Unadjusted	73.1			74.9
	Adjusted ⁽¹⁾	72.9			74.6
OPERATING MARGIN %:
	Unadjusted	3.5			3.3



		Adjusted ^(1),(2)	3.5			3.3
PRETAX MARGIN %:
		Unadjusted	2.5			1.8
		Adjusted ^(1),(3)	2.6			2.4
SAME STORE SG&A RECONCILIATION:
		As reported	$	509,436		$	499,467		2.0
		Pre-tax adjustments:
		Catastrophic events	(951		)	(1,676		)
		Gain (loss) on real estate and dealership transactions	(364		)	—
		Legal settlements	(1,000		)	(442		)
		Foreign transaction tax	—			(416		)
		Adjusted Same Store SG&A ⁽¹⁾	$	507,121		$	496,933		2.1
SAME STORE SG&A AS % REVENUES:
		Unadjusted	10.7			11.0
		Adjusted⁽¹⁾	10.7			10.9
SAME STORE SG&A AS % GROSS PROFIT:
		Unadjusted	73.1			73.7
		Adjusted⁽¹⁾	72.8			73.3
SAME STORE OPERATING MARGIN %:
		Unadjusted	3.5			3.4
		Adjusted^(1),(4)	3.5			3.5

(1	)	We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items. These adjusted measures are not measures of financial performance under GAAP. As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures. We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations.
(2	)	Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges for all periods.
(3	)	Excludes the impact of SG&A reconciling items above, non-cash asset impairment charges for all periods, as well as loss on redemption of long-term debt of $23,614 for the three and six months ended June 30, 2014.
(4	)	Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $498 for the three and six months ended June 30, 2015, and $1,721 for the three and six months ended June 30, 2014.
(5	)	Adjustment is net of tax benefit of $359 for the three and six months ended June 30, 2015, and $637 for the three and six months ended June 30, 2014, calculated utilizing the applicable federal and state tax rates for adjustment.
(6	)	Adjustment is net of tax provision of $452 for the three and six months ended June 30, 2015, and $194 for the three and six months ended June 30, 2014, calculated utilizing the applicable federal and state tax rates for adjustment.
(7	)	Adjustment is net of tax benefit of $42 for the three and six months ended June 30, 2015, calculated utilizing the applicable federal and state tax rates for adjustment.
(8	)	Adjustment is net of tax benefit of $390 for the three and six months ended June 30, 2015, and $168 for the three and six months ended June 30, 2014, calculated utilizing the applicable federal and state tax rates for adjustment.
(9	)	Adjustment is net of tax benefit of $141 for the three and six months ended June 30, 2014, calculated utilizing the applicable federal and state tax rates for adjustment.
(10	)	Adjustment is net of tax benefit of $191 for the three and six months ended June 30, 2015, and $654 and for the three and six months ended June 30, 2014, calculated utilizing the applicable federal and state tax rates for adjustment.
(11	)	Adjustment is net of tax benefit of $2,836 for the three and six months ended June 30, 2014, calculated utilizing the applicable federal and state tax rates for adjustment.

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GROUP 1 AUTOMOTIVE INC Reports