Attached files
| file | filename |
|---|---|
| 8-K - 2017 3RD QUARTER 8-K - GROUP 1 AUTOMOTIVE INC | a20173rdquarterearningsrel.htm |
FOR IMMEDIATE RELEASE
Group 1 Automotive Reports Third Quarter 2017 Financial Results
Strong Replacement Demand in Texas & Improved Profitability in the U.K. and Brazil Delivers Record Operating Results
HOUSTON, October 26, 2017 - Group 1 Automotive, Inc. (NYSE: GPI), (“Group 1” or the “Company”), an international, Fortune 500 automotive retailer, today reported 2017 third quarter net income of $29.9 million, diluted earnings per common share of $1.43, adjusted net income (a non-GAAP measure) of $46.6 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $2.23.
Third quarter 2017 adjusted net income and diluted earnings per share exclude approximately $16.8 million of net, after-tax adjustments, or $0.80 per share, for non-core items. These adjustments primarily consist of costs directly associated with Hurricane Harvey of approximately $9.0 million after-tax, or $0.44 per share; and, franchise right impairments of $5.9 million after-tax, or $0.28 per share. Reconciliations of non-GAAP financial measures are included in the attached financial tables.
“While the Company's third quarter results were negatively affected by both the non-recurring costs from Hurricane Harvey, as well as business disruption for more than a week across our largest revenue-generating market, strong demand for replacement vehicles in September provided significant financial recovery,” said Earl J. Hesterberg, Group 1’s president and chief executive officer. “We expect this recovery to continue for a number of months, as the region continues to rebuild from Hurricane Harvey’s widespread impact. Our overseas businesses were also positive factors in our third quarter results. Although the U.K. new vehicle market declined roughly nine percent in the third quarter, we significantly outperformed the industry with our Same Store new vehicle unit sales rising 2.9 percent. Our used vehicle and F&I businesses were up almost 10 percent driving a total Same Store revenue increase of nine percent on a local currency basis. In Brazil, our operations delivered another quarter of profitability, with gross profit up 19.4 percent on a Same Store constant currency basis, reflecting continued double-digit growth in used, aftersales, and F&I. Our combined performance in all three markets delivered record revenues, gross profit, and adjusted earnings for the quarter.”
Consolidated Results for Third Quarter 2017 (year-over-year comparable basis)
For ease of comparison, we have included constant currency metrics (a non-GAAP measure) both below (shown in parenthesis) and in the financial tables that follow:
▪ | Total revenue increased 6.7 percent (increased 6.6 percent) to record $3.0 billion; total gross profit increased 6.1 percent (increased 6.0 percent) to a record $431.4 million. |
▪ | New vehicle revenues increased 7.7 percent (increased 7.5 percent) on a 6.0 percent increase in unit sales. New vehicle gross profit increased 9.8 percent (increased 9.6 percent) to a record $88.3 million. U.S. new vehicle margins were up 6.1 percent, or $108 per unit, to $1,891. |
▪ | Retail used vehicle revenues increased 5.8 percent (increased 5.7 percent) on a 4.1 percent increase in unit sales. Retail used vehicle gross profit increased 2.5 percent (increased 2.5 percent) to $47.1 million as the unit sales increase was partially offset by a slight margin decrease of 1.4 percent (decreased 1.5 percent), or $20 per unit, to $1,372. |
▪ | Parts and service gross profit increased 6.8 percent (increased 6.7 percent) on revenue growth of 7.4 percent (increased 7.3 percent). Same Store parts and service gross profit increased 4.5 percent (increased 4.4 percent) on revenue growth of 5.1 percent (increased 5.0 percent). U.S. Same Store parts and service revenue increased 4.7 percent. |
1
▪ | Finance and Insurance (F&I) gross profit per retail unit (PRU) decreased 2.9 percent (decreased 3.0 percent) to $1,343 per retail unit. Adjusted F&I gross profit PRU (a non-GAAP measure) increased 2.8 percent (increased 2.8 percent) to $1,422, reflecting increases in all three regions. |
▪ | Selling, General and Administrative (SG&A) expenses as a percent of gross profit increased 260 basis points to 76.1 percent. Adjusted SG&A expenses as a percent of gross profit (a non-GAAP measure) decreased 80 basis points to 72.8 percent. |
Segment Results for Third Quarter 2017 (year-over-year comparable basis)
▪ | United States: |
The Company’s U.S. operations accounted for 76.4 percent of total revenues and 82.0 percent of total gross profit. On a Same Store basis, U.S. revenues were $2.3 billion, an increase of 1.5 percent. Adjusted U.S. revenue (a non-GAAP measure) increased 1.8 percent, reflecting 3.6 percent growth in new vehicles and a 4.7 percent increase in aftersales revenue. The aftersales growth came in spite of losing more than a week of operations in the key markets of Houston/Beaumont, Miami, and portions of the Gulf Coast. Total U.S. Same Store gross profit grew 2.1 percent. Adjusted total U.S. Same Store gross profit (a non-GAAP measure) increased 4.0 percent.
▪ | United Kingdom: |
The Company’s U.K. operations accounted for 19.6 percent of total revenues and 14.7 percent of total gross profit. On a Same Store basis, new vehicle unit sales increased 2.9 percent, which outperformed the U.K.’s new vehicle industry decline of 8.9 percent. Total Same Store revenue grew 8.8 percent and total Same Store gross profit grew 8.6 percent, both on a constant currency basis. This gross profit growth was driven by a 22.2 percent increase in total used vehicle gross profit, a 10.6 percent increase in aftersales gross profit, a 9.8 percent increase in F&I gross profit, and a slight increase of 0.5 percent in new vehicle gross profit, all on a constant currency basis.
▪ | Brazil: |
The Company’s Brazilian operations were profitable again this quarter and accounted for 4.0 percent of total revenues and 3.3 percent of total gross profit. Total Same Store revenue grew 14.0 percent (increased 11.2 percent) and total Same Store gross profit increased 22.4 percent (increased 19.4 percent), reflecting strong growth in Same Store total used vehicles gross profit of 27.7 percent (increased 24.5 percent) and a 30.9 percent increase (increased 27.8 percent) in Same Store aftersales gross profit. In addition, Same Store F&I gross profit PRU increased 30.6 percent (increased 27.4 percent). Same Store SG&A as a percentage of gross profit improved 1160 basis points (930 basis points on an adjusted basis) to 89.8 percent.
Corporate Development
As previously announced in July 2017, the Company acquired the Beadles Group Ltd in the U.K., which expanded the dealership footprint in the region to 43 stores, with expected annual revenues of $330 million. Also in July 2017, as previously announced, the Company acquired its first Jaguar and Land Rover dealerships in the U.S., which are located in Albuquerque and Santa Fe, New Mexico, and have projected annualized revenues of $40 million. Additionally, as previously announced in August 2017, the Company acquired Audi Forth Worth in Texas, which has an expected annualized revenue of $55 million. In October 2017, the Company closed a SEAT brand sales operation in Watford, England, which generated approximately $10 million in trailing-twelve-month revenues.
Year-to-date 2017, the Company has acquired 17 dealerships, which are expected to generate an estimated $490 million in annualized revenues, and the Company has disposed of three dealerships, which generated approximately $35 million in trailing-twelve-month revenues.
Share Repurchase Authorization
During the third quarter 2017, the Company repurchased approximately 20,000 shares at an average price per common share of $53.46 for a total of $1.1 million. Year to date, we have spent $40.1 million to repurchase approximately 650 thousand shares at an average price per common share of $61.75. These repurchases represent
2
three percent of the total outstanding common shares at the beginning of 2017. As of September 30, 2017, $49.6 million remains available under the Company's current common stock share repurchase authorization, which was reset in May 2017.
Purchases may be made from time to time in the open market or in privately negotiated transactions, based on market conditions, legal requirements and other corporate considerations and subject to Board approval and covenant restrictions.
Third Quarter 2017 Earnings Conference Call Details
Group 1’s senior management will host a conference call today at 1 p.m. ET to discuss the third quarter financial results and the Company’s outlook and strategy.
The conference call will be simulcast live on the Internet at www.group1auto.com. Click on ‘Investor Relations’ and then ‘Events’ or through this link: www.group1corp.com/events. A webcast replay will be available for 30 days.
The conference call will also be available live by dialing in 15 minutes prior to the start of the call at:
Domestic: 1-888-317-6003
International: 1-412-317-6061
Conference ID: 7378333
A telephonic replay will be available following the call through November 1, 2017 by dialing:
Domestic: 1-877-344-7529
International: 1-412-317-0088
Replay ID: 10113415
About Group 1 Automotive, Inc.
Group 1 owns and operates 173 automotive dealerships, 227 franchises, and 47 collision centers in the United States, the United Kingdom and Brazil that offer 32 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service contracts; provides automotive maintenance and repair services; and sells vehicle parts.
Investors please visit www.group1corp.com, www.group1auto.com, www.group1collision.com, www.facebook.com/group1auto, and www.twitter.com/group1auto, where Group 1 discloses additional information about the Company, its business, and its results of operations.
FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements related to future, not past, events and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. In this context, the forward-looking statements often include statements regarding our goals, plans, projections and guidance regarding our financial position, results of operations, market position, pending and potential future acquisitions and business strategy, and often contain words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “should,” “foresee,” “may” or “will” and similar expressions. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Any such forward-looking statements are not assurances of future performance and involve risks and uncertainties that may cause actual results to differ materially from those set forth in the statements. These risks and uncertainties include, among other things, (a) general economic and business conditions, (b) the level of manufacturer incentives, (c) the future regulatory environment, (d) our ability to obtain an inventory of desirable new and used vehicles, (e) our relationship with our automobile manufacturers and the willingness of manufacturers to approve future acquisitions, (f) our cost of financing and the availability of credit for consumers, (g) our ability to complete acquisitions and dispositions and the risks associated therewith, (h) foreign exchange controls and currency fluctuations, and (i) our ability to retain key personnel. For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with the SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.
3
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.
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
or
Clint Woods
Pierpont Communications, Inc.
713-627-2223 | cwoods@piercom.com
4
Group 1 Automotive, Inc. | ||||||||||||
Consolidated Statements of Operations | ||||||||||||
(Unaudited) | ||||||||||||
(In thousands, except per share amounts) | ||||||||||||
Three Months Ended September 30, | ||||||||||||
2017 | 2016 | % Increase/(Decrease) | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 1,710,241 | $ | 1,587,952 | 7.7 | |||||||
Used vehicle retail sales | 743,038 | 702,620 | 5.8 | |||||||||
Used vehicle wholesale sales | 104,827 | 104,218 | 0.6 | |||||||||
Parts and service | 343,193 | 319,676 | 7.4 | |||||||||
Finance, insurance and other, net | 110,993 | 108,710 | 2.1 | |||||||||
Total revenues | 3,012,292 | 2,823,176 | 6.7 | |||||||||
COST OF SALES: | ||||||||||||
New vehicle retail sales | 1,621,909 | 1,507,517 | 7.6 | |||||||||
Used vehicle retail sales | 695,915 | 656,652 | 6.0 | |||||||||
Used vehicle wholesale sales | 105,012 | 106,077 | (1.0 | ) | ||||||||
Parts and service | 158,036 | 146,262 | 8.0 | |||||||||
Total cost of sales | 2,580,872 | 2,416,508 | 6.8 | |||||||||
GROSS PROFIT | 431,420 | 406,668 | 6.1 | |||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 328,327 | 299,006 | 9.8 | |||||||||
DEPRECIATION AND AMORTIZATION EXPENSE | 15,059 | 12,891 | 16.8 | |||||||||
ASSET IMPAIRMENTS | 9,526 | 10,855 | (12.2 | ) | ||||||||
OPERATING INCOME | 78,508 | 83,916 | (6.4 | ) | ||||||||
OTHER EXPENSE: | ||||||||||||
Floorplan interest expense | (13,491 | ) | (11,135 | ) | 21.2 | |||||||
Other interest expense, net | (17,874 | ) | (17,094 | ) | 4.6 | |||||||
INCOME BEFORE INCOME TAXES | 47,143 | 55,687 | (15.3 | ) | ||||||||
PROVISION FOR INCOME TAXES | (17,262 | ) | (20,321 | ) | (15.1 | ) | ||||||
NET INCOME | $ | 29,881 | $ | 35,366 | (15.5 | ) | ||||||
Less: Earnings allocated to participating securities | $ | 1,023 | $ | 1,426 | (28.3 | ) | ||||||
Earnings available to diluted common shares | $ | 28,858 | $ | 33,940 | (15.0 | ) | ||||||
DILUTED EARNINGS PER SHARE | $ | 1.43 | $ | 1.65 | (13.3 | ) | ||||||
Weighted average dilutive common shares outstanding | 20,225 | 20,578 | (1.7 | ) | ||||||||
Weighted average participating securities | 724 | 872 | (17.0 | ) | ||||||||
Total weighted average shares outstanding | 20,949 | 21,450 | (2.3 | ) | ||||||||
1
Nine Months Ended September 30, | ||||||||||||
2017 | 2016 | % Increase/(Decrease) | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 4,496,222 | $ | 4,538,562 | (0.9 | ) | ||||||
Used vehicle retail sales | 2,089,914 | 2,106,569 | (0.8 | ) | ||||||||
Used vehicle wholesale sales | 308,361 | 302,089 | 2.1 | |||||||||
Parts and service | 994,522 | 950,341 | 4.6 | |||||||||
Finance, insurance and other, net | 314,297 | 316,419 | (0.7 | ) | ||||||||
Total revenues | 8,203,316 | 8,213,980 | (0.1 | ) | ||||||||
COST OF SALES: | ||||||||||||
New vehicle retail sales | 4,263,752 | 4,305,252 | (1.0 | ) | ||||||||
Used vehicle retail sales | 1,952,873 | 1,963,136 | (0.5 | ) | ||||||||
Used vehicle wholesale sales | 308,713 | 302,551 | 2.0 | |||||||||
Parts and service | 458,144 | 437,153 | 4.8 | |||||||||
Total cost of sales | 6,983,482 | 7,008,092 | (0.4 | ) | ||||||||
GROSS PROFIT | 1,219,834 | 1,205,888 | 1.2 | |||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 916,674 | 891,692 | 2.8 | |||||||||
DEPRECIATION AND AMORTIZATION EXPENSE | 42,758 | 38,067 | 12.3 | |||||||||
ASSET IMPAIRMENTS | 9,526 | 12,812 | (25.6 | ) | ||||||||
OPERATING INCOME | 250,876 | 263,317 | (4.7 | ) | ||||||||
OTHER EXPENSE: | ||||||||||||
Floorplan interest expense | (38,659 | ) | (33,737 | ) | 14.6 | |||||||
Other interest expense, net | (52,188 | ) | (50,729 | ) | 2.9 | |||||||
INCOME BEFORE INCOME TAXES | 160,029 | 178,851 | (10.5 | ) | ||||||||
PROVISION FOR INCOME TAXES | (57,076 | ) | (62,614 | ) | (8.8 | ) | ||||||
NET INCOME | $ | 102,953 | $ | 116,237 | (11.4 | ) | ||||||
Less: Earnings allocated to participating securities | $ | 3,659 | $ | 4,651 | (21.3 | ) | ||||||
Earnings available to diluted common shares | $ | 99,294 | $ | 111,586 | (11.0 | ) | ||||||
DILUTED EARNINGS PER SHARE | $ | 4.85 | $ | 5.22 | (7.1 | ) | ||||||
Weighted average dilutive common shares outstanding | 20,480 | 21,364 | (4.1 | ) | ||||||||
Weighted average participating securities | 767 | 895 | (14.3 | ) | ||||||||
Total weighted average shares outstanding | 21,247 | 22,259 | (4.5 | ) | ||||||||
2
Group 1 Automotive, Inc. | ||||||||||||
Consolidated Balance Sheets | ||||||||||||
(Unaudited) | ||||||||||||
(Dollars in thousands) | ||||||||||||
September 30, 2017 | December 31, 2016 | % Increase/(Decrease) | ||||||||||
ASSETS: | ||||||||||||
CURRENT ASSETS: | ||||||||||||
Cash and cash equivalents | $ | 66,883 | $ | 20,992 | 218.6 | |||||||
Contracts in transit and vehicle receivables, net | 288,200 | 269,508 | 6.9 | |||||||||
Accounts and notes receivable, net | 187,672 | 173,364 | 8.3 | |||||||||
Inventories, net | 1,651,789 | 1,651,815 | — | |||||||||
Prepaid expenses and other current assets | 38,111 | 34,908 | 9.2 | |||||||||
Total current assets | 2,232,655 | 2,150,587 | 3.8 | |||||||||
PROPERTY AND EQUIPMENT, net | 1,269,397 | 1,125,883 | 12.7 | |||||||||
GOODWILL AND INTANGIBLE FRANCHISE RIGHTS | 1,208,344 | 1,161,639 | 4.0 | |||||||||
OTHER ASSETS | 20,598 | 23,794 | (13.4 | ) | ||||||||
Total assets | $ | 4,730,994 | $ | 4,461,903 | 6.0 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY: | ||||||||||||
CURRENT LIABILITIES: | ||||||||||||
Floorplan notes payable - credit facility and other | $ | 1,077,287 | $ | 1,136,654 | (5.2 | ) | ||||||
Offset account related to floorplan notes payable - credit facility | (46,248 | ) | (59,626 | ) | (22.4 | ) | ||||||
Floorplan notes payable - manufacturer affiliates | 399,804 | 392,661 | 1.8 | |||||||||
Offset account related to floorplan notes payable - manufacturer affiliates | (22,000 | ) | (25,500 | ) | (13.7 | ) | ||||||
Current maturities of long-term debt and short-term financing | 80,996 | 72,419 | 11.8 | |||||||||
Current liabilities from interest rate risk management activities | 823 | 3,941 | (79.1 | ) | ||||||||
Accounts payable | 436,851 | 356,099 | 22.7 | |||||||||
Accrued expenses | 208,770 | 176,469 | 18.3 | |||||||||
Total current liabilities | 2,136,283 | 2,053,117 | 4.1 | |||||||||
5.00% SENIOR NOTES (principal of $550,000 at September 30, 2017 and December 31, 2016, respectively) | 541,658 | 540,465 | 0.2 | |||||||||
5.25% SENIOR NOTES (principal of $300,000 at September 30, 2017 and December 31, 2016, respectively) | 296,009 | 295,591 | 0.1 | |||||||||
ACQUISITION LINE | 33,508 | — | 100.0 | |||||||||
REAL ESTATE RELATED AND OTHER LONG-TERM DEBT, net of current maturities | 373,466 | 333,326 | 12.0 | |||||||||
CAPITAL LEASE OBLIGATIONS RELATED TO REAL ESTATE, net of current maturities | 48,048 | 43,427 | 10.6 | |||||||||
DEFERRED INCOME TAXES | 181,244 | 161,502 | 12.2 | |||||||||
LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES | 16,157 | 20,470 | (21.1 | ) | ||||||||
OTHER LIABILITIES | 93,474 | 83,805 | 11.5 | |||||||||
STOCKHOLDERS' EQUITY: | ||||||||||||
Common stock | 255 | 257 | (0.8 | ) | ||||||||
Additional paid-in capital | 288,970 | 290,899 | (0.7 | ) | ||||||||
Retained earnings | 1,141,066 | 1,053,301 | 8.3 | |||||||||
Accumulated other comprehensive loss | (126,415 | ) | (146,944 | ) | (14.0 | ) | ||||||
Treasury stock | (292,729 | ) | (267,313 | ) | 9.5 | |||||||
Total stockholders' equity | 1,011,147 | 930,200 | 8.7 | |||||||||
Total liabilities and stockholders' equity | $ | 4,730,994 | $ | 4,461,903 | 6.0 | |||||||
3
Group 1 Automotive, Inc. | ||||||||||||||
Additional Information - Consolidated | ||||||||||||||
(Unaudited) | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2017 (%) | 2016 (%) | 2017 (%) | 2016 (%) | |||||||||||
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX: | ||||||||||||||
Region | Geographic Market | |||||||||||||
United States | Texas | 37.8 | 36.2 | 36.5 | 36.4 | |||||||||
California | 7.0 | 9.4 | 7.6 | 9.3 | ||||||||||
Oklahoma | 5.7 | 6.6 | 6.2 | 6.9 | ||||||||||
Massachusetts | 4.8 | 5.0 | 4.7 | 4.9 | ||||||||||
Georgia | 4.4 | 4.6 | 4.6 | 4.2 | ||||||||||
Florida | 2.4 | 2.5 | 2.5 | 2.5 | ||||||||||
New Hampshire | 1.9 | 2.0 | 2.0 | 1.9 | ||||||||||
Louisiana | 1.9 | 2.2 | 2.0 | 2.1 | ||||||||||
New Jersey | 1.7 | 1.7 | 1.7 | 1.6 | ||||||||||
Kansas | 1.5 | 1.6 | 1.6 | 1.8 | ||||||||||
South Carolina | 1.3 | 1.3 | 1.3 | 1.4 | ||||||||||
Mississippi | 1.2 | 1.5 | 1.3 | 1.5 | ||||||||||
Alabama | 0.9 | 1.0 | 1.0 | 0.9 | ||||||||||
Maryland | 0.3 | 0.5 | 0.4 | 0.5 | ||||||||||
New Mexico | 0.1 | — | — | — | ||||||||||
72.9 | 76.1 | 73.4 | 75.9 | |||||||||||
International | United Kingdom | 22.6 | 18.6 | 21.8 | 18.2 | |||||||||
Brazil | 4.5 | 5.3 | 4.8 | 5.9 | ||||||||||
100.0 | 100.0 | 100.0 | 100.0 | |||||||||||
NEW VEHICLE UNIT SALES BRAND MIX: | ||||||||||||||
Toyota/Scion/Lexus | 26.7 | 25.3 | 25.3 | 24.7 | ||||||||||
Volkswagen/Audi/Porsche | 13.9 | 11.3 | 13.0 | 10.9 | ||||||||||
BMW/MINI | 11.5 | 13.2 | 12.8 | 13.3 | ||||||||||
Ford/Lincoln | 10.6 | 10.8 | 11.5 | 11.1 | ||||||||||
Honda/Acura | 9.0 | 9.9 | 9.2 | 10.2 | ||||||||||
Nissan | 7.0 | 7.0 | 7.5 | 7.0 | ||||||||||
Chevrolet/GMC/Buick/Cadillac | 6.1 | 7.3 | 6.2 | 7.6 | ||||||||||
Hyundai/Kia | 4.2 | 4.3 | 4.0 | 4.4 | ||||||||||
Chrysler/Dodge/Jeep/RAM | 3.9 | 4.1 | 3.9 | 4.1 | ||||||||||
Mercedes-Benz/smart/Sprinter | 3.4 | 4.2 | 3.8 | 4.1 | ||||||||||
Other | 3.7 | 2.6 | 2.8 | 2.6 | ||||||||||
100.0 | 100.0 | 100.0 | 100.0 | |||||||||||
4
Group 1 Automotive, Inc. | ||||||||||||
Additional Information - U.S. | ||||||||||||
(Unaudited) | ||||||||||||
(Dollars in thousands, except per unit amounts) | ||||||||||||
Three Months Ended September 30, | ||||||||||||
2017 | 2016 | % Increase/(Decrease) | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 1,296,267 | $ | 1,254,421 | 3.3 | |||||||
Used vehicle retail sales | 562,031 | 575,551 | (2.3 | ) | ||||||||
Used vehicle wholesale sales | 63,363 | 74,821 | (15.3 | ) | ||||||||
Total used | 625,394 | 650,372 | (3.8 | ) | ||||||||
Parts and service | 283,915 | 271,635 | 4.5 | |||||||||
Finance, insurance and other, net | 96,383 | 98,295 | (1.9 | ) | ||||||||
Total | $ | 2,301,959 | $ | 2,274,723 | 1.2 | |||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 5.1 | 4.9 | ||||||||||
Used vehicle retail sales | 6.8 | 6.8 | ||||||||||
Used vehicle wholesale sales | (0.1 | ) | (2.0 | ) | ||||||||
Total used | 6.1 | 5.8 | ||||||||||
Parts and service | 53.8 | 54.8 | ||||||||||
Finance, insurance and other, net | 100.0 | 100.0 | ||||||||||
Total | 15.4 | 15.2 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 66,622 | $ | 61,886 | 7.7 | |||||||
Used vehicle retail sales | 37,962 | 39,193 | (3.1 | ) | ||||||||
Used vehicle wholesale sales | (54 | ) | (1,514 | ) | 96.4 | |||||||
Total used | 37,908 | 37,679 | 0.6 | |||||||||
Parts and service | 152,654 | 148,866 | 2.5 | |||||||||
Finance, insurance and other, net | 96,383 | 98,295 | (1.9 | ) | ||||||||
Total | $ | 353,567 | $ | 346,726 | 2.0 | |||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 35,233 | 34,700 | 1.5 | |||||||||
Retail used vehicles sold | 26,304 | 27,201 | (3.3 | ) | ||||||||
Wholesale used vehicles sold | 9,786 | 11,005 | (11.1 | ) | ||||||||
Total used | 36,090 | 38,206 | (5.5 | ) | ||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 36,791 | $ | 36,150 | 1.8 | |||||||
Used vehicle retail | $ | 21,367 | $ | 21,159 | 1.0 | |||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 1,891 | $ | 1,783 | 6.1 | |||||||
Used vehicle retail sales | 1,443 | 1,441 | 0.1 | |||||||||
Used vehicle wholesale sales | (6 | ) | (138 | ) | 95.7 | |||||||
Total used | 1,050 | 986 | 6.5 | |||||||||
Finance, insurance and other, net (per retail unit) | $ | 1,566 | $ | 1,588 | (1.4 | ) | ||||||
OTHER: | ||||||||||||
Adjusted Finance, insurance and other revenue, net (1) (2) | $ | 102,933 | $ | 98,295 | 4.7 | |||||||
Adjusted Total revenue (1) | $ | 2,308,509 | $ | 2,274,723 | 1.5 | |||||||
Adjusted Total gross profit (1) | $ | 360,117 | $ | 346,726 | 3.9 | |||||||
Adjusted Total gross margin (1) | 15.6 | 15.2 | ||||||||||
Adjusted Finance, insurance and other, net (per retail unit) (1) | $ | 1,673 | $ | 1,588 | 5.4 | |||||||
SG&A expenses | $ | 261,787 | $ | 246,501 | 6.2 | |||||||
Adjusted SG&A expenses (1) | $ | 252,120 | $ | 247,227 | 2.0 | |||||||
SG&A as % revenues | 11.4 | 10.8 | ||||||||||
Adjusted SG&A as % revenues (1) | 11.0 | 10.9 | ||||||||||
SG&A as % gross profit | 74.0 | 71.1 | ||||||||||
Adjusted SG&A as % gross profit (1) | 70.0 | 71.3 | ||||||||||
Operating margin % | 3.0 | 3.4 | ||||||||||
Adjusted operating margin % (1) | 4.1 | 3.9 | ||||||||||
Pretax margin % | 1.8 | 2.3 | ||||||||||
Adjusted pretax margin % (1) | 2.9 | 2.8 | ||||||||||
INTEREST EXPENSE: | ||||||||||||
Floorplan interest expense | $ | (12,014 | ) | $ | (9,979 | ) | 20.4 | |||||
Floorplan assistance | 13,295 | 12,824 | 3.7 | |||||||||
Net floorplan income | $ | 1,281 | $ | 2,845 | (55.0 | ) | ||||||
Other interest expense, net | $ | (16,727 | ) | $ | (15,710 | ) | 6.5 | |||||
5
Nine Months Ended September 30, | ||||||||||||
2017 | 2016 | % Increase/(Decrease) | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 3,458,287 | $ | 3,558,127 | (2.8 | ) | ||||||
Used vehicle retail sales | 1,620,171 | 1,709,595 | (5.2 | ) | ||||||||
Used vehicle wholesale sales | 200,384 | 205,755 | (2.6 | ) | ||||||||
Total used | 1,820,555 | 1,915,350 | (4.9 | ) | ||||||||
Parts and service | 837,772 | 805,618 | 4.0 | |||||||||
Finance, insurance and other, net | 276,754 | 284,644 | (2.8 | ) | ||||||||
Total | $ | 6,393,368 | $ | 6,563,739 | (2.6 | ) | ||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 5.1 | 5.0 | ||||||||||
Used vehicle retail sales | 6.9 | 7.2 | ||||||||||
Used vehicle wholesale sales | (0.1 | ) | (0.3 | ) | ||||||||
Total used | 6.2 | 6.4 | ||||||||||
Parts and service | 53.8 | 54.6 | ||||||||||
Finance, insurance and other, net | 100.0 | 100.0 | ||||||||||
Total | 15.9 | 15.6 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 174,831 | $ | 177,674 | (1.6 | ) | ||||||
Used vehicle retail sales | 112,598 | 122,832 | (8.3 | ) | ||||||||
Used vehicle wholesale sales | (170 | ) | (643 | ) | 73.6 | |||||||
Total used | 112,428 | 122,189 | (8.0 | ) | ||||||||
Parts and service | 450,623 | 439,526 | 2.5 | |||||||||
Finance, insurance and other, net | 276,754 | 284,644 | (2.8 | ) | ||||||||
Total | $ | 1,014,636 | $ | 1,024,033 | (0.9 | ) | ||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 93,533 | 98,692 | (5.2 | ) | ||||||||
Retail used vehicles sold | 76,435 | 80,888 | (5.5 | ) | ||||||||
Wholesale used vehicles sold | 29,468 | 30,894 | (4.6 | ) | ||||||||
Total used | 105,903 | 111,782 | (5.3 | ) | ||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 36,974 | $ | 36,053 | 2.6 | |||||||
Used vehicle retail | $ | 21,197 | $ | 21,135 | 0.3 | |||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 1,869 | $ | 1,800 | 3.8 | |||||||
Used vehicle retail sales | 1,473 | 1,519 | (3.0 | ) | ||||||||
Used vehicle wholesale sales | (6 | ) | (21 | ) | 71.4 | |||||||
Total used | 1,062 | 1,093 | (2.8 | ) | ||||||||
Finance, insurance and other, net (per retail unit) | $ | 1,628 | $ | 1,585 | 2.7 | |||||||
6
OTHER: | ||||||||||||
Adjusted Finance, insurance and other revenue, net (1) (2) | $ | 283,304 | $ | 284,644 | (0.5 | ) | ||||||
Adjusted Total revenue (1) | $ | 6,399,918 | $ | 6,563,739 | (2.6 | ) | ||||||
Adjusted Total gross profit (1) | $ | 1,021,186 | $ | 1,024,033 | (0.3 | ) | ||||||
Adjusted Total gross margin (1) | 16.0 | 15.6 | ||||||||||
Adjusted Finance, insurance and other, net (per retail unit) (1) | $ | 1,667 | $ | 1,585 | 5.2 | |||||||
SG&A expenses | $ | 741,904 | $ | 737,730 | 0.6 | |||||||
Adjusted SG&A expenses (1) | $ | 733,427 | $ | 733,683 | — | |||||||
SG&A as % revenues | 11.6 | 11.2 | ||||||||||
Adjusted SG&A as % revenues (1) | 11.5 | 11.2 | ||||||||||
SG&A as % gross profit | 73.1 | 72.0 | ||||||||||
Adjusted SG&A as % gross profit (1) | 71.8 | 71.6 | ||||||||||
Operating margin % | 3.6 | 3.7 | ||||||||||
Adjusted operating margin % (1) | 3.9 | 3.9 | ||||||||||
Pretax margin % | 2.2 | 2.5 | ||||||||||
Adjusted pretax margin % (1) | 2.6 | 2.8 | ||||||||||
INTEREST EXPENSE: | ||||||||||||
Floorplan interest expense | $ | (34,954 | ) | $ | (30,428 | ) | 14.9 | |||||
Floorplan assistance | 35,031 | 36,176 | (3.2 | ) | ||||||||
Net floorplan income | $ | 77 | $ | 5,748 | (98.7 | ) | ||||||
Other interest expense, net | $ | (49,571 | ) | $ | (46,581 | ) | 6.4 | |||||
(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.
7
Group 1 Automotive, Inc. | ||||||||||||||
Additional Information - U.K. | ||||||||||||||
(Unaudited) | ||||||||||||||
(Dollars in thousands, except per unit amounts) | ||||||||||||||
Three Months Ended September 30, | ||||||||||||||
2017 | 2016 | % Increase/(Decrease) | Constant Currency (1) % Increase/(Decrease) | |||||||||||
REVENUES: | ||||||||||||||
New vehicle retail sales | $ | 334,772 | $ | 256,143 | 30.7 | 30.3 | ||||||||
Used vehicle retail sales | 158,076 | 106,856 | 47.9 | 48.3 | ||||||||||
Used vehicle wholesale sales | 38,647 | 28,586 | 35.2 | 35.5 | ||||||||||
Total used | 196,723 | 135,442 | 45.2 | 45.6 | ||||||||||
Parts and service | 46,783 | 35,682 | 31.1 | 31.5 | ||||||||||
Finance, insurance and other, net | 12,448 | 8,708 | 42.9 | 42.8 | ||||||||||
Total | $ | 590,726 | $ | 435,975 | 35.5 | 35.4 | ||||||||
GROSS MARGIN %: | ||||||||||||||
New vehicle retail sales | 5.1 | 5.5 | ||||||||||||
Used vehicle retail sales | 4.7 | 4.9 | ||||||||||||
Used vehicle wholesale sales | (0.9 | ) | (1.4 | ) | ||||||||||
Total used | 3.6 | 3.6 | ||||||||||||
Parts and service | 57.3 | 55.7 | ||||||||||||
Finance, insurance and other, net | 100.0 | 100.0 | ||||||||||||
Total | 10.8 | 10.9 | ||||||||||||
GROSS PROFIT: | ||||||||||||||
New vehicle retail sales | $ | 17,205 | $ | 14,031 | 22.6 | 21.9 | ||||||||
Used vehicle retail sales | 7,471 | 5,265 | 41.9 | 42.3 | ||||||||||
Used vehicle wholesale sales | (347 | ) | (404 | ) | 14.1 | 11.7 | ||||||||
Total used | 7,124 | 4,861 | 46.6 | 46.8 | ||||||||||
Parts and service | 26,823 | 19,892 | 34.8 | 35.2 | ||||||||||
Finance, insurance and other, net | 12,448 | 8,708 | 42.9 | 42.8 | ||||||||||
Total | $ | 63,600 | $ | 47,492 | 33.9 | 33.8 | ||||||||
UNITS SOLD: | ||||||||||||||
Retail new vehicles sold | 10,909 | 8,468 | 28.8 | |||||||||||
Retail used vehicles sold | 7,011 | 4,800 | 46.1 | |||||||||||
Wholesale used vehicles sold | 4,939 | 3,689 | 33.9 | |||||||||||
Total used | 11,950 | 8,489 | 40.8 | |||||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||||
New vehicle retail | $ | 30,688 | $ | 30,248 | 1.5 | 1.2 | ||||||||
Used vehicle retail | $ | 22,547 | $ | 22,262 | 1.3 | 1.5 | ||||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||||
New vehicle retail sales | $ | 1,577 | $ | 1,657 | (4.8 | ) | (5.4 | ) | ||||||
Used vehicle retail sales | 1,066 | 1,097 | (2.8 | ) | (2.6 | ) | ||||||||
Used vehicle wholesale sales | (70 | ) | (110 | ) | 36.4 | 34.1 | ||||||||
Total used | 596 | 573 | 4.0 | 4.3 | ||||||||||
Finance, insurance and other, net (per retail unit) | $ | 695 | $ | 656 | 5.9 | 5.7 | ||||||||
OTHER: | ||||||||||||||
SG&A expenses | $ | 53,395 | $ | 39,609 | 34.8 | 35.2 | ||||||||
SG&A as % revenues | 9.0 | 9.1 | ||||||||||||
SG&A as % gross profit | 84.0 | 83.4 | ||||||||||||
Operating margin % | 1.3 | 1.4 | ||||||||||||
Pretax margin % | 0.9 | 0.9 | ||||||||||||
INTEREST EXPENSE: | ||||||||||||||
Floorplan interest expense | $ | (1,336 | ) | $ | (1,083 | ) | 23.4 | 23.5 | ||||||
Floorplan assistance | 265 | 154 | 72.1 | 72.3 | ||||||||||
Net floorplan expense | $ | (1,071 | ) | $ | (929 | ) | 15.3 | 15.4 | ||||||
Other interest expense, net | $ | (1,121 | ) | $ | (1,299 | ) | (13.7 | ) | (13.6 | ) | ||||
8
Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | % Increase/(Decrease) | Constant Currency (1) % Increase/(Decrease) | |||||||||||
REVENUES: | ||||||||||||||
New vehicle retail sales | $ | 824,827 | $ | 764,707 | 7.9 | 17.1 | ||||||||
Used vehicle retail sales | 401,851 | 339,800 | 18.3 | 28.8 | ||||||||||
Used vehicle wholesale sales | 99,604 | 93,985 | 6.0 | 15.6 | ||||||||||
Total used | 501,455 | 433,785 | 15.6 | 26.0 | ||||||||||
Parts and service | 120,614 | 110,180 | 9.5 | 19.2 | ||||||||||
Finance, insurance and other, net | 31,260 | 26,991 | 15.8 | 25.8 | ||||||||||
Total | $ | 1,478,156 | $ | 1,335,663 | 10.7 | 20.3 | ||||||||
GROSS MARGIN %: | ||||||||||||||
New vehicle retail sales | 5.5 | 5.7 | ||||||||||||
Used vehicle retail sales | 4.9 | 5.1 | ||||||||||||
Used vehicle wholesale sales | (0.9 | ) | 0.1 | |||||||||||
Total used | 3.7 | 4.0 | ||||||||||||
Parts and service | 57.6 | 55.2 | ||||||||||||
Finance, insurance and other, net | 100.0 | 100.0 | ||||||||||||
Total | 11.2 | 11.1 | ||||||||||||
GROSS PROFIT: | ||||||||||||||
New vehicle retail sales | $ | 45,350 | $ | 43,347 | 4.6 | 13.6 | ||||||||
Used vehicle retail sales | 19,579 | 17,329 | 13.0 | 23.3 | ||||||||||
Used vehicle wholesale sales | (851 | ) | 54 | (1,675.9 | ) | (5,004.1 | ) | |||||||
Total used | 18,728 | 17,383 | 7.7 | 7.6 | ||||||||||
Parts and service | 69,488 | 60,845 | 14.2 | 24.3 | ||||||||||
Finance, insurance and other, net | 31,260 | 26,991 | 15.8 | 25.8 | ||||||||||
Total | $ | 164,826 | $ | 148,566 | 10.9 | 20.7 | ||||||||
UNITS SOLD: | ||||||||||||||
Retail new vehicles sold | 27,821 | 23,694 | 17.4 | |||||||||||
Retail used vehicles sold | 18,435 | 14,401 | 28.0 | |||||||||||
Wholesale used vehicles sold | 13,245 | 11,328 | 16.9 | |||||||||||
Total used | 31,680 | 25,729 | 23.1 | |||||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||||
New vehicle retail | $ | 29,648 | $ | 32,274 | (8.1 | ) | (0.3 | ) | ||||||
Used vehicle retail | $ | 21,798 | $ | 23,596 | (7.6 | ) | 0.6 | |||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||||
New vehicle retail sales | $ | 1,630 | $ | 1,829 | (10.9 | ) | (3.3 | ) | ||||||
Used vehicle retail sales | 1,062 | 1,203 | (11.7 | ) | (3.7 | ) | ||||||||
Used vehicle wholesale sales | (64 | ) | 5 | (1,380.0 | ) | (4,294.3 | ) | |||||||
Total used | 591 | 676 | (12.6 | ) | (12.6 | ) | ||||||||
Finance, insurance and other, net (per retail unit) | $ | 676 | $ | 709 | (4.7 | ) | 3.6 | |||||||
OTHER: | ||||||||||||||
SG&A expenses | $ | 137,475 | $ | 119,154 | 15.4 | 25.5 | ||||||||
Adjusted SG&A expenses (1) | $ | 137,187 | $ | 118,593 | 15.7 | 25.9 | ||||||||
SG&A as % revenues | 9.3 | 8.9 | ||||||||||||
Adjusted SG&A as % revenues (1) | 9.3 | 8.9 | ||||||||||||
SG&A as % gross profit | 83.4 | 80.2 | ||||||||||||
Adjusted SG&A as % gross profit (1) | 83.2 | 79.8 | ||||||||||||
Operating margin % | 1.5 | 1.8 | ||||||||||||
Adjusted operating margin % (1) | 1.5 | 1.9 | ||||||||||||
Pretax margin % | 1.1 | 1.3 | ||||||||||||
Adjusted pretax margin % (1) | 1.1 | 1.3 | ||||||||||||
INTEREST EXPENSE: | ||||||||||||||
Floorplan interest expense | $ | (3,423 | ) | $ | (3,137 | ) | 9.1 | 18.5 | ||||||
Floorplan assistance | 714 | 643 | 11.0 | 22.1 | ||||||||||
Net floorplan expense | $ | (2,709 | ) | $ | (2,494 | ) | 8.6 | 17.6 | ||||||
Other interest expense, net | $ | (2,386 | ) | $ | (3,966 | ) | (39.8 | ) | (34.7 | ) | ||||
9
Group 1 Automotive, Inc. | |||||||||||||||
Additional Information - Brazil | |||||||||||||||
(Unaudited) | |||||||||||||||
(Dollars in thousands, except per unit amounts) | |||||||||||||||
Three Months Ended September 30, | |||||||||||||||
2017 | 2016 | % Increase/(Decrease) | Constant Currency (1) % Increase/(Decrease) | ||||||||||||
REVENUES: | |||||||||||||||
New vehicle retail sales | $ | 79,202 | $ | 77,388 | 2.3 | (0.2 | ) | ||||||||
Used vehicle retail sales | 22,931 | 20,213 | 13.4 | 10.6 | |||||||||||
Used vehicle wholesale sales | 2,817 | 811 | 247.3 | 239.0 | |||||||||||
Total used | 25,748 | 21,024 | 22.5 | 19.4 | |||||||||||
Parts and service | 12,495 | 12,359 | 1.1 | (1.4 | ) | ||||||||||
Finance, insurance and other, net | 2,162 | 1,707 | 26.7 | 23.5 | |||||||||||
Total | $ | 119,607 | $ | 112,478 | 6.3 | 3.7 | |||||||||
GROSS MARGIN %: | |||||||||||||||
New vehicle retail sales | 5.7 | 5.8 | |||||||||||||
Used vehicle retail sales | 7.4 | 7.5 | |||||||||||||
Used vehicle wholesale sales | 7.7 | 7.3 | |||||||||||||
Total used | 7.4 | 7.5 | |||||||||||||
Parts and service | 45.5 | 37.7 | |||||||||||||
Finance, insurance and other, net | 100.0 | 100.0 | |||||||||||||
Total | 11.9 | 11.1 | |||||||||||||
GROSS PROFIT: | |||||||||||||||
New vehicle retail sales | $ | 4,505 | $ | 4,518 | (0.3 | ) | (2.7 | ) | |||||||
Used vehicle retail sales | 1,690 | 1,510 | 11.9 | 9.2 | |||||||||||
Used vehicle wholesale sales | 216 | 59 | 266.1 | 258.5 | |||||||||||
Total used | 1,906 | 1,569 | 21.5 | 18.6 | |||||||||||
Parts and service | 5,680 | 4,656 | 22.0 | 19.0 | |||||||||||
Finance, insurance and other, net | 2,162 | 1,707 | 26.7 | 23.5 | |||||||||||
Total | $ | 14,253 | $ | 12,450 | 14.5 | 11.7 | |||||||||
UNITS SOLD: | |||||||||||||||
Retail new vehicles sold | 2,179 | 2,429 | (10.3 | ) | |||||||||||
Retail used vehicles sold | 1,034 | 1,011 | 2.3 | ||||||||||||
Wholesale used vehicles sold | 242 | 333 | (27.3 | ) | |||||||||||
Total used | 1,276 | 1,344 | (5.1 | ) | |||||||||||
AVERAGE RETAIL SALES PRICE: | |||||||||||||||
New vehicle retail | $ | 36,348 | $ | 31,860 | 14.1 | 11.3 | |||||||||
Used vehicle retail | $ | 22,177 | $ | 19,993 | 10.9 | 8.2 | |||||||||
GROSS PROFIT PER UNIT SOLD: | |||||||||||||||
New vehicle retail sales | $ | 2,067 | $ | 1,860 | 11.1 | 8.5 | |||||||||
Used vehicle retail sales | 1,634 | 1,494 | 9.4 | 6.8 | |||||||||||
Used vehicle wholesale sales | 893 | 177 | 404.5 | 393.3 | |||||||||||
Total used | 1,494 | 1,167 | 28.0 | 24.9 | |||||||||||
Finance, insurance and other, net (per retail unit) | $ | 673 | $ | 496 | 35.7 | 32.2 | |||||||||
OTHER: | |||||||||||||||
SG&A expenses | $ | 13,145 | $ | 12,896 | 1.9 | (0.6 | ) | ||||||||
Adjusted SG&A expenses (1) | $ | 13,145 | $ | 12,622 | 4.1 | 1.6 | |||||||||
SG&A as % revenues | 11.0 | 11.5 | |||||||||||||
Adjusted SG&A as % revenues (1) | 11.0 | 11.2 | |||||||||||||
SG&A as % gross profit | 92.2 | 103.6 | |||||||||||||
Adjusted SG&A as % gross profit (1) | 92.2 | 101.4 | |||||||||||||
Operating margin % | 0.6 | (0.6 | ) | ||||||||||||
Adjusted operating margin % (1) | 0.6 | (0.4 | ) | ||||||||||||
Pretax margin % | 0.5 | (0.8 | ) | ||||||||||||
Adjusted pretax margin % (1) | 0.5 | (0.5 | ) | ||||||||||||
INTEREST EXPENSE: | |||||||||||||||
Floorplan interest expense | $ | (141 | ) | $ | (73 | ) | 93.2 | 90.9 | |||||||
Floorplan assistance | — | — | — | — | |||||||||||
Net floorplan expense | $ | (141 | ) | $ | (73 | ) | 93.2 | 90.9 | |||||||
Other interest expense, net | $ | (26 | ) | $ | (85 | ) | (69.4 | ) | (68.7 | ) | |||||
10
Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | % Increase/(Decrease) | Constant Currency (1) % Increase/(Decrease) | |||||||||||
REVENUES: | ||||||||||||||
New vehicle retail sales | $ | 213,108 | $ | 215,728 | (1.2 | ) | (11.0 | ) | ||||||
Used vehicle retail sales | 67,892 | 57,174 | 18.7 | 6.3 | ||||||||||
Used vehicle wholesale sales | 8,373 | 2,349 | 256.4 | 220.7 | ||||||||||
Total used | 76,265 | 59,523 | 28.1 | 14.8 | ||||||||||
Parts and service | 36,136 | 34,543 | 4.6 | (5.9 | ) | |||||||||
Finance, insurance and other, net | 6,283 | 4,784 | 31.3 | 18.3 | ||||||||||
Total | $ | 331,792 | $ | 314,578 | 5.5 | (5.1 | ) | |||||||
GROSS MARGIN %: | ||||||||||||||
New vehicle retail sales | 5.8 | 5.7 | ||||||||||||
Used vehicle retail sales | 7.2 | 5.7 | ||||||||||||
Used vehicle wholesale sales | 8.0 | 5.4 | ||||||||||||
Total used | 7.3 | 5.7 | ||||||||||||
Parts and service | 45.0 | 37.1 | ||||||||||||
Finance, insurance and other, net | 100.0 | 100.0 | ||||||||||||
Total | 12.2 | 10.6 | ||||||||||||
GROSS PROFIT: | ||||||||||||||
New vehicle retail sales | $ | 12,289 | $ | 12,289 | — | (10.0 | ) | |||||||
Used vehicle retail sales | 4,864 | 3,272 | 48.7 | 36.8 | ||||||||||
Used vehicle wholesale sales | 669 | 127 | 426.8 | 378.4 | ||||||||||
Total used | 5,533 | 3,399 | 62.8 | 49.6 | ||||||||||
Parts and service | 16,267 | 12,817 | 26.9 | 14.0 | ||||||||||
Finance, insurance and other, net | 6,283 | 4,784 | 31.3 | 18.3 | ||||||||||
Total | $ | 40,372 | $ | 33,289 | 21.3 | 9.3 | ||||||||
UNITS SOLD: | ||||||||||||||
Retail new vehicles sold | 6,133 | 7,636 | (19.7 | ) | ||||||||||
Retail used vehicles sold | 3,048 | 3,465 | (12.0 | ) | ||||||||||
Wholesale used vehicles sold | 858 | 855 | 0.4 | |||||||||||
Total used | 3,906 | 4,320 | (9.6 | ) | ||||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||||
New vehicle retail | $ | 34,748 | $ | 28,251 | 23.0 | 10.9 | ||||||||
Used vehicle retail | $ | 22,274 | $ | 16,500 | 35.0 | 20.8 | ||||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||||
New vehicle retail sales | $ | 2,004 | $ | 1,609 | 24.5 | 12.0 | ||||||||
Used vehicle retail sales | 1,596 | 944 | 69.1 | 55.5 | ||||||||||
Used vehicle wholesale sales | 780 | 149 | 423.5 | 376.7 | ||||||||||
Total used | 1,417 | 787 | 80.1 | 65.4 | ||||||||||
Finance, insurance and other, net (per retail unit) | $ | 684 | $ | 431 | 58.7 | 43.1 | ||||||||
OTHER: | ||||||||||||||
SG&A expenses | $ | 37,295 | $ | 34,808 | 7.1 | (3.6 | ) | |||||||
Adjusted SG&A expenses (1) | $ | 37,295 | $ | 34,162 | 9.2 | (1.7 | ) | |||||||
SG&A as % revenues | 11.2 | 11.1 | ||||||||||||
Adjusted SG&A as % revenues (1) | 11.2 | 10.9 | ||||||||||||
SG&A as % gross profit | 92.4 | 104.6 | ||||||||||||
Adjusted SG&A as % gross profit (1) | 92.4 | 102.6 | ||||||||||||
Operating margin % | 0.6 | (0.9 | ) | |||||||||||
Adjusted operating margin % (1) | 0.6 | (0.5 | ) | |||||||||||
Pretax margin % | 0.4 | (1.0 | ) | |||||||||||
Adjusted pretax margin % (1) | 0.4 | (0.7 | ) | |||||||||||
INTEREST EXPENSE: | ||||||||||||||
Floorplan interest expense | $ | (282 | ) | $ | (172 | ) | 64.0 | 50.0 | ||||||
Floorplan assistance | — | — | — | — | ||||||||||
Net floorplan expense | $ | (282 | ) | $ | (172 | ) | 64.0 | 50.0 | ||||||
Other interest expense, net | $ | (231 | ) | $ | (182 | ) | 26.9 | 8.7 | ||||||
(1) See the section of this release entitled "Non-GAAP Financial Measures " and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.
11
Group 1 Automotive, Inc. | ||||||||||||||
Additional Information - Consolidated | ||||||||||||||
(Unaudited) | ||||||||||||||
(Dollars in thousands, except per unit amounts) | ||||||||||||||
Three Months Ended September 30, | ||||||||||||||
2017 | 2016 | % Increase/(Decrease) | Constant Currency (1) % Increase/(Decrease) | |||||||||||
REVENUES: | ||||||||||||||
New vehicle retail sales | $ | 1,710,241 | $ | 1,587,952 | 7.7 | 7.5 | ||||||||
Used vehicle retail sales | 743,038 | 702,620 | 5.8 | 5.7 | ||||||||||
Used vehicle wholesale sales | 104,827 | 104,218 | 0.6 | 0.6 | ||||||||||
Total used | 847,865 | 806,838 | 5.1 | 5.1 | ||||||||||
Parts and service | 343,193 | 319,676 | 7.4 | 7.3 | ||||||||||
Finance, insurance and other, net | 110,993 | 108,710 | 2.1 | 2.0 | ||||||||||
Total | $ | 3,012,292 | $ | 2,823,176 | 6.7 | 6.6 | ||||||||
GROSS MARGIN %: | ||||||||||||||
New vehicle retail sales | 5.2 | 5.1 | ||||||||||||
Used vehicle retail sales | 6.3 | 6.5 | ||||||||||||
Used vehicle wholesale sales | (0.2 | ) | (1.8 | ) | ||||||||||
Total used | 5.5 | 5.5 | ||||||||||||
Parts and service | 54.0 | 54.2 | ||||||||||||
Finance, insurance and other, net | 100.0 | 100.0 | ||||||||||||
Total | 14.3 | 14.4 | ||||||||||||
GROSS PROFIT: | ||||||||||||||
New vehicle retail sales | $ | 88,332 | $ | 80,435 | 9.8 | 9.6 | ||||||||
Used vehicle retail sales | 47,123 | 45,968 | 2.5 | 2.5 | ||||||||||
Used vehicle wholesale sales | (185 | ) | (1,859 | ) | 90.0 | 89.3 | ||||||||
Total used | 46,938 | 44,109 | 6.4 | 6.3 | ||||||||||
Parts and service | 185,157 | 173,414 | 6.8 | 6.7 | ||||||||||
Finance, insurance and other, net | 110,993 | 108,710 | 2.1 | 2.0 | ||||||||||
Total | $ | 431,420 | $ | 406,668 | 6.1 | 6.0 | ||||||||
UNITS SOLD: | ||||||||||||||
Retail new vehicles sold | 48,321 | 45,597 | 6.0 | |||||||||||
Retail used vehicles sold | 34,349 | 33,012 | 4.1 | |||||||||||
Wholesale used vehicles sold | 14,967 | 15,027 | (0.4 | ) | ||||||||||
Total used | 49,316 | 48,039 | 2.7 | |||||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||||
New vehicle retail | $ | 35,393 | $ | 34,826 | 1.6 | 1.5 | ||||||||
Used vehicle retail | $ | 21,632 | $ | 21,284 | 1.6 | 1.6 | ||||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||||
New vehicle retail sales | $ | 1,828 | $ | 1,764 | 3.6 | 3.4 | ||||||||
Used vehicle retail sales | 1,372 | 1,392 | (1.4 | ) | (1.5 | ) | ||||||||
Used vehicle wholesale sales | (12 | ) | (124 | ) | 90.3 | 89.2 | ||||||||
Total used | 952 | 918 | 3.7 | 3.6 | ||||||||||
Finance, insurance and other, net (per retail unit) | $ | 1,343 | $ | 1,383 | (2.9 | ) | (3.0 | ) | ||||||
OTHER: | ||||||||||||||
Adjusted Finance, insurance and other revenue, net (1) (2) | $ | 117,543 | $ | 108,710 | 8.1 | 8.1 | ||||||||
Adjusted Total revenue (1) | $ | 3,018,842 | $ | 2,823,176 | 6.9 | 6.8 | ||||||||
Adjusted Total gross profit (1) | $ | 437,970 | $ | 406,668 | 7.7 | 7.6 | ||||||||
Adjusted Total gross margin (1) | 14.5 | 14.4 | ||||||||||||
Adjusted Finance, insurance and other, net (per retail unit) (1) | $ | 1,422 | $ | 1,383 | 2.8 | 2.8 | ||||||||
SG&A expenses | $ | 328,327 | $ | 299,006 | 9.8 | 9.7 | ||||||||
Adjusted SG&A expenses (1) | $ | 318,660 | $ | 299,458 | 6.4 | 6.4 | ||||||||
SG&A as % revenues | 10.9 | 10.6 | ||||||||||||
Adjusted SG&A as % revenues (1) | 10.6 | 10.6 | ||||||||||||
SG&A as % gross profit | 76.1 | 73.5 | ||||||||||||
Adjusted SG&A as % gross profit (1) | 72.8 | 73.6 | ||||||||||||
Operating margin % | 2.6 | 3.0 | ||||||||||||
Adjusted operating margin % (1) | 3.5 | 3.3 | ||||||||||||
Pretax margin % | 1.6 | 2.0 | ||||||||||||
Adjusted pretax margin % (1) | 2.4 | 2.3 | ||||||||||||
INTEREST EXPENSE: | ||||||||||||||
Floorplan interest expense | $ | (13,491 | ) | $ | (11,135 | ) | 21.2 | 21.2 | ||||||
Floorplan assistance | 13,561 | 12,979 | 4.5 | 4.5 | ||||||||||
Net floorplan (expense) income | $ | 70 | $ | 1,844 | (96.2 | ) | (96.1 | ) | ||||||
Other interest expense, net | $ | (17,874 | ) | $ | (17,094 | ) | 4.6 | 4.6 | ||||||
12
Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | % Increase/(Decrease) | Constant Currency (1) % Increase/(Decrease) | |||||||||||
REVENUES: | ||||||||||||||
New vehicle retail sales | $ | 4,496,222 | $ | 4,538,562 | (0.9 | ) | 0.2 | |||||||
Used vehicle retail sales | 2,089,914 | 2,106,569 | (0.8 | ) | 0.6 | |||||||||
Used vehicle wholesale sales | 308,361 | 302,089 | 2.1 | 4.8 | ||||||||||
Total used | 2,398,275 | 2,408,658 | (0.4 | ) | 1.1 | |||||||||
Parts and service | 994,522 | 950,341 | 4.6 | 5.4 | ||||||||||
Finance, insurance and other, net | 314,297 | 316,419 | (0.7 | ) | — | |||||||||
Total | $ | 8,203,316 | $ | 8,213,980 | (0.1 | ) | 1.0 | |||||||
GROSS MARGIN %: | ||||||||||||||
New vehicle retail sales | 5.2 | 5.1 | ||||||||||||
Used vehicle retail sales | 6.6 | 6.8 | ||||||||||||
Used vehicle wholesale sales | (0.1 | ) | (0.2 | ) | ||||||||||
Total used | 5.7 | 5.9 | ||||||||||||
Parts and service | 53.9 | 54.0 | ||||||||||||
Finance, insurance and other, net | 100.0 | 100.0 | ||||||||||||
Total | 14.9 | 14.7 | ||||||||||||
GROSS PROFIT: | ||||||||||||||
New vehicle retail sales | $ | 232,470 | $ | 233,310 | (0.4 | ) | 0.8 | |||||||
Used vehicle retail sales | 137,041 | 143,433 | (4.5 | ) | (3.5 | ) | ||||||||
Used vehicle wholesale sales | (352 | ) | (462 | ) | 23.8 | (381.7 | ) | |||||||
Total used | 136,689 | 142,971 | (4.4 | ) | (4.7 | ) | ||||||||
Parts and service | 536,378 | 513,188 | 4.5 | 5.4 | ||||||||||
Finance, insurance and other, net | 314,297 | 316,419 | (0.7 | ) | — | |||||||||
Total | $ | 1,219,834 | $ | 1,205,888 | 1.2 | 2.0 | ||||||||
UNITS SOLD: | ||||||||||||||
Retail new vehicles sold | 127,487 | 130,022 | (1.9 | ) | ||||||||||
Retail used vehicles sold | 97,918 | 98,754 | (0.8 | ) | ||||||||||
Wholesale used vehicles sold | 43,571 | 43,077 | 1.1 | |||||||||||
Total used | 141,489 | 141,831 | (0.2 | ) | ||||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||||
New vehicle retail | $ | 35,268 | $ | 34,906 | 1.0 | 2.1 | ||||||||
Used vehicle retail | $ | 21,344 | $ | 21,331 | 0.1 | 1.4 | ||||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||||
New vehicle retail sales | $ | 1,823 | $ | 1,794 | 1.6 | 2.8 | ||||||||
Used vehicle retail sales | 1,400 | 1,452 | (3.6 | ) | (2.7 | ) | ||||||||
Used vehicle wholesale sales | (8 | ) | (11 | ) | 27.3 | (376.2 | ) | |||||||
Total used | 966 | 1,008 | (4.2 | ) | (4.5 | ) | ||||||||
Finance, insurance and other, net (per retail unit) | $ | 1,394 | $ | 1,383 | 0.8 | 1.5 | ||||||||
13
OTHER: | ||||||||||||||
Adjusted Finance, insurance and other revenue, net (1) (2) | $ | 320,847 | $ | 316,419 | 1.4 | 2.1 | ||||||||
Adjusted Total revenue (1) | $ | 8,209,866 | $ | 8,213,980 | (0.1 | ) | 1.1 | |||||||
Adjusted Total gross profit (1) | $ | 1,226,384 | $ | 1,205,888 | 1.7 | 2.4 | ||||||||
Adjusted Total gross margin (1) | 14.9 | 14.7 | ||||||||||||
Adjusted Finance, insurance and other, net (per retail unit) (1) | $ | 1,423 | $ | 1,383 | 2.9 | 3.6 | ||||||||
SG&A expenses | $ | 916,674 | $ | 891,692 | 2.8 | 3.7 | ||||||||
Adjusted SG&A expenses (1) | $ | 907,909 | $ | 886,439 | 2.4 | 3.4 | ||||||||
SG&A as % revenues | 11.2 | 10.9 | ||||||||||||
Adjusted SG&A as % revenues (1) | 11.1 | 10.8 | ||||||||||||
SG&A as % gross profit | 75.1 | 73.9 | ||||||||||||
Adjusted SG&A as % gross profit (1) | 74.0 | 73.5 | ||||||||||||
Operating margin % | 3.1 | 3.2 | ||||||||||||
Adjusted operating margin % (1) | 3.4 | 3.4 | ||||||||||||
Pretax margin % | 2.0 | 2.2 | ||||||||||||
Adjusted pretax margin % (1) | 2.3 | 2.4 | ||||||||||||
INTEREST EXPENSE: | ||||||||||||||
Floorplan interest expense | $ | (38,659 | ) | $ | (33,737 | ) | 14.6 | 15.4 | ||||||
Floorplan assistance | 35,745 | 36,818 | (2.9 | ) | (2.7 | ) | ||||||||
Net floorplan (expense) income | $ | (2,914 | ) | $ | 3,081 | (194.6 | ) | (201.1 | ) | |||||
Other interest expense, net | $ | (52,188 | ) | $ | (50,729 | ) | 2.9 | 3.2 | ||||||
(1) See the section of this release entitled "Non-GAAP Financial Measures" and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.
(2) Finance, insurance and other revenue represents fees earned for the financing of vehicle sales transactions and from the sale of insurance and vehicle service contracts. Such amounts are reported net of estimated amounts to be charged back in the future. As a result, finance, insurance and other revenue and gross profit are the same.
14
Group 1 Automotive, Inc. | |||||||||||
Additional Information - Same Store U.S. (1) | |||||||||||
(Unaudited) | |||||||||||
(Dollars in thousands, except per unit amounts) | |||||||||||
Three Months Ended September 30, | |||||||||||
2017 | 2016 | % Increase/(Decrease) | |||||||||
REVENUES: | |||||||||||
New vehicle retail sales | $ | 1,283,050 | $ | 1,238,239 | 3.6 | ||||||
Used vehicle retail sales | 557,657 | 568,306 | (1.9 | ) | |||||||
Used vehicle wholesale sales | 62,552 | 74,020 | (15.5 | ) | |||||||
Total used | 620,209 | 642,326 | (3.4 | ) | |||||||
Parts and service | 281,735 | 269,072 | 4.7 | ||||||||
Finance, insurance and other, net | 95,195 | 96,685 | (1.5 | ) | |||||||
Total | $ | 2,280,189 | $ | 2,246,322 | 1.5 | ||||||
GROSS MARGIN %: | |||||||||||
New vehicle retail sales | 5.1 | 4.9 | |||||||||
Used vehicle retail sales | 6.7 | 6.8 | |||||||||
Used vehicle wholesale sales | (0.2 | ) | (2.0 | ) | |||||||
Total used | 6.0 | 5.8 | |||||||||
Parts and service | 53.8 | 54.7 | |||||||||
Finance, insurance and other, net | 100.0 | 100.0 | |||||||||
Total | 15.3 | 15.3 | |||||||||
GROSS PROFIT: | |||||||||||
New vehicle retail sales | $ | 65,712 | $ | 61,270 | 7.2 | ||||||
Used vehicle retail sales | 37,638 | 38,909 | (3.3 | ) | |||||||
Used vehicle wholesale sales | (138 | ) | (1,477 | ) | 90.7 | ||||||
Total used | 37,500 | 37,432 | 0.2 | ||||||||
Parts and service | 151,481 | 147,215 | 2.9 | ||||||||
Finance, insurance and other, net | 95,195 | 96,685 | (1.5 | ) | |||||||
Total | $ | 349,888 | $ | 342,602 | 2.1 | ||||||
UNITS SOLD: | |||||||||||
Retail new vehicles sold | 34,917 | 34,080 | 2.5 | ||||||||
Retail used vehicles sold | 26,093 | 26,800 | (2.6 | ) | |||||||
Wholesale used vehicles sold | 9,672 | 10,832 | (10.7 | ) | |||||||
Total used | 35,765 | 37,632 | (5.0 | ) | |||||||
AVERAGE RETAIL SALES PRICE: | |||||||||||
New vehicle retail | $ | 36,746 | $ | 36,333 | 1.1 | ||||||
Used vehicle retail | $ | 21,372 | $ | 21,205 | 0.8 | ||||||
GROSS PROFIT PER UNIT SOLD: | |||||||||||
New vehicle retail sales | $ | 1,882 | $ | 1,798 | 4.7 | ||||||
Used vehicle retail sales | 1,442 | 1,452 | (0.7 | ) | |||||||
Used vehicle wholesale sales | (14 | ) | (136 | ) | 89.7 | ||||||
Total used | 1,049 | 995 | 5.4 | ||||||||
Finance, insurance and other, net (per retail unit) | $ | 1,560 | $ | 1,588 | (1.8 | ) | |||||
OTHER: | |||||||||||
Adjusted Finance, insurance and other revenue, net (2) (3) | $ | 101,745 | $ | 96,685 | 5.2 | ||||||
Adjusted Total revenue (2) | $ | 2,286,739 | $ | 2,246,322 | 1.8 | ||||||
Adjusted Total gross profit (2) | $ | 356,438 | $ | 342,602 | 4.0 | ||||||
Adjusted Total gross margin (2) | 15.6 | 15.3 | |||||||||
Adjusted Finance, insurance and other, net (per retail unit) (2) | $ | 1,668 | $ | 1,588 | 5.0 | ||||||
SG&A expenses | $ | 258,862 | $ | 243,151 | 6.5 | ||||||
Adjusted SG&A expenses (2) | $ | 249,195 | $ | 242,701 | 2.7 | ||||||
SG&A as % revenues | 11.4 | 10.8 | |||||||||
Adjusted SG&A as % revenues (2) | 10.9 | 10.8 | |||||||||
SG&A as % gross profit | 74.0 | 71.0 | |||||||||
Adjusted SG&A as % gross profit (2) | 69.9 | 70.8 | |||||||||
Operating margin % | 3.0 | 3.5 | |||||||||
Adjusted operating margin % (2) | 4.2 | 4.0 | |||||||||
15
Nine Months Ended September 30, | |||||||||||
2017 | 2016 | % Increase/(Decrease) | |||||||||
REVENUES: | |||||||||||
New vehicle retail sales | $ | 3,441,300 | $ | 3,505,583 | (1.8 | ) | |||||
Used vehicle retail sales | 1,614,613 | 1,684,837 | (4.2 | ) | |||||||
Used vehicle wholesale sales | 199,320 | 202,003 | (1.3 | ) | |||||||
Total used | 1,813,933 | 1,886,840 | (3.9 | ) | |||||||
Parts and service | 835,188 | 796,455 | 4.9 | ||||||||
Finance, insurance and other, net | 274,464 | 279,919 | (1.9 | ) | |||||||
Total | $ | 6,364,885 | $ | 6,468,797 | (1.6 | ) | |||||
GROSS MARGIN %: | |||||||||||
New vehicle retail sales | 5.1 | 5.0 | |||||||||
Used vehicle retail sales | 7.0 | 7.2 | |||||||||
Used vehicle wholesale sales | (0.1 | ) | (0.1 | ) | |||||||
Total used | 6.2 | 6.4 | |||||||||
Parts and service | 53.8 | 54.5 | |||||||||
Finance, insurance and other, net | 100.0 | 100.0 | |||||||||
Total | 15.9 | 15.6 | |||||||||
GROSS PROFIT: | |||||||||||
New vehicle retail sales | $ | 173,908 | $ | 175,554 | (0.9 | ) | |||||
Used vehicle retail sales | 112,216 | 121,040 | (7.3 | ) | |||||||
Used vehicle wholesale sales | (232 | ) | (213 | ) | (8.9 | ) | |||||
Total used | 111,984 | 120,827 | (7.3 | ) | |||||||
Parts and service | 449,262 | 433,879 | 3.5 | ||||||||
Finance, insurance and other, net | 274,464 | 279,919 | (1.9 | ) | |||||||
Total | $ | 1,009,618 | $ | 1,010,179 | (0.1 | ) | |||||
UNITS SOLD: | |||||||||||
Retail new vehicles sold | 93,090 | 96,676 | (3.7 | ) | |||||||
Retail used vehicles sold | 76,156 | 79,587 | (4.3 | ) | |||||||
Wholesale used vehicles sold | 29,315 | 30,271 | (3.2 | ) | |||||||
Total used | 105,471 | 109,858 | (4.0 | ) | |||||||
AVERAGE RETAIL SALES PRICE: | |||||||||||
New vehicle retail | $ | 36,967 | $ | 36,261 | 1.9 | ||||||
Used vehicle retail | $ | 21,201 | $ | 21,170 | 0.1 | ||||||
GROSS PROFIT PER UNIT SOLD: | |||||||||||
New vehicle retail sales | $ | 1,868 | $ | 1,816 | 2.9 | ||||||
Used vehicle retail sales | 1,474 | 1,521 | (3.1 | ) | |||||||
Used vehicle wholesale sales | (8 | ) | (7 | ) | (14.3 | ) | |||||
Total used | 1,062 | 1,100 | (3.5 | ) | |||||||
Finance, insurance and other, net (per retail unit) | $ | 1,622 | $ | 1,588 | 2.1 | ||||||
16
OTHER: | |||||||||||
Adjusted Finance, insurance and other revenue, net (2) (3) | $ | 281,014 | $ | 279,919 | 0.4 | ||||||
Adjusted Total revenue (2) | $ | 6,371,435 | $ | 6,468,797 | (1.5 | ) | |||||
Adjusted Total gross profit (2) | $ | 1,016,168 | $ | 1,010,179 | 0.6 | ||||||
Adjusted Total gross margin (2) | 15.9 | 15.6 | |||||||||
Adjusted Finance, insurance and other, net (per retail unit) (2) | $ | 1,660 | $ | 1,588 | 4.5 | ||||||
SG&A expenses | $ | 737,548 | $ | 725,162 | 1.7 | ||||||
Adjusted SG&A expenses (2) | $ | 729,071 | $ | 718,875 | 1.4 | ||||||
SG&A as % revenues | 11.6 | 11.2 | |||||||||
Adjusted SG&A as % revenues (2) | 11.5 | 11.1 | |||||||||
SG&A as % gross profit | 73.1 | 71.8 | |||||||||
Adjusted SG&A as % gross profit (2) | 71.7 | 71.2 | |||||||||
Operating margin % | 3.6 | 3.7 | |||||||||
Adjusted operating margin % (2) | 4.0 | 4.0 | |||||||||
(1) Same Store amounts include the results for the identical months in each period presented in the comparison, commencing with the first full month we owned the dealership and, in the case of dispositions, ending with the last full month we owned it. Same Store results also include the activities of our corporate office.
(2) See the section of this release entitled "Non-GAAP Financial Measures" and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.
(3) Finance, insurance and other revenue represents fees earned for the financing of vehicle sales transactions and from the sale of insurance and vehicle service contracts. Such amounts are reported net of estimated amounts to be charged back in the future. As a result, finance, insurance and other revenue and gross profit are the same.
17
Group 1 Automotive, Inc. | ||||||||||||||
Additional Information - Same Store U.K. (1) | ||||||||||||||
(Unaudited) | ||||||||||||||
(Dollars in thousands, except per unit amounts) | ||||||||||||||
Three Months Ended September 30, | ||||||||||||||
2017 | 2016 | % Increase/(Decrease) | Constant Currency (2) % Increase/(Decrease) | |||||||||||
REVENUES: | ||||||||||||||
New vehicle retail sales | $ | 270,750 | $ | 254,246 | 6.5 | 6.2 | ||||||||
Used vehicle retail sales | 120,723 | 104,692 | 15.3 | 15.6 | ||||||||||
Used vehicle wholesale sales | 30,565 | 27,891 | 9.6 | 9.8 | ||||||||||
Total used | 151,288 | 132,583 | 14.1 | 14.4 | ||||||||||
Parts and service | 37,360 | 35,360 | 5.7 | 6.0 | ||||||||||
Finance, insurance and other, net | 9,487 | 8,634 | 9.9 | 9.8 | ||||||||||
Total | $ | 468,885 | $ | 430,823 | 8.8 | 8.8 | ||||||||
GROSS MARGIN %: | ||||||||||||||
New vehicle retail sales | 5.2 | 5.5 | ||||||||||||
Used vehicle retail sales | 4.9 | 4.8 | ||||||||||||
Used vehicle wholesale sales | (1.1 | ) | (1.5 | ) | ||||||||||
Total used | 3.7 | 3.5 | ||||||||||||
Parts and service | 58.1 | 55.7 | ||||||||||||
Finance, insurance and other, net | 100.0 | 100.0 | ||||||||||||
Total | 10.9 | 10.9 | ||||||||||||
GROSS PROFIT: | ||||||||||||||
New vehicle retail sales | $ | 14,065 | $ | 13,919 | 1.0 | 0.5 | ||||||||
Used vehicle retail sales | 5,970 | 5,034 | 18.6 | 19.0 | ||||||||||
Used vehicle wholesale sales | (332 | ) | (409 | ) | 18.8 | 17.3 | ||||||||
Total used | 5,638 | 4,625 | 21.9 | 22.2 | ||||||||||
Parts and service | 21,710 | 19,683 | 10.3 | 10.6 | ||||||||||
Finance, insurance and other, net | 9,487 | 8,634 | 9.9 | 9.8 | ||||||||||
Total | $ | 50,900 | $ | 46,861 | 8.6 | 8.6 | ||||||||
UNITS SOLD: | ||||||||||||||
Retail new vehicles sold | 8,573 | 8,331 | 2.9 | |||||||||||
Retail used vehicles sold | 5,094 | 4,643 | 9.7 | |||||||||||
Wholesale used vehicles sold | 3,795 | 3,563 | 6.5 | |||||||||||
Total used | 8,889 | 8,206 | 8.3 | |||||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||||
New vehicle retail | $ | 31,582 | $ | 30,518 | 3.5 | 3.2 | ||||||||
Used vehicle retail | $ | 23,699 | $ | 22,548 | 5.1 | 5.4 | ||||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||||
New vehicle retail sales | $ | 1,641 | $ | 1,671 | (1.8 | ) | (2.3 | ) | ||||||
Used vehicle retail sales | 1,172 | 1,084 | 8.1 | 8.5 | ||||||||||
Used vehicle wholesale sales | (87 | ) | (115 | ) | 24.3 | 22.3 | ||||||||
Total used | 634 | 564 | 12.4 | 12.8 | ||||||||||
Finance, insurance and other, net (per retail unit) | $ | 694 | $ | 665 | 4.4 | 4.2 | ||||||||
OTHER: | ||||||||||||||
SG&A expenses | $ | 41,538 | $ | 38,836 | 7.0 | 7.2 | ||||||||
SG&A as % revenues | 8.9 | 9.0 | ||||||||||||
SG&A as % gross profit | 81.6 | 82.9 | ||||||||||||
Operating margin % | 1.6 | 1.5 | ||||||||||||
18
Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | % Increase/(Decrease) | Constant Currency (2) % Increase/(Decrease) | |||||||||||
REVENUES: | ||||||||||||||
New vehicle retail sales | $ | 719,059 | $ | 746,389 | (3.7 | ) | 4.6 | |||||||
Used vehicle retail sales | 336,591 | 326,141 | 3.2 | 12.4 | ||||||||||
Used vehicle wholesale sales | 84,564 | 89,360 | (5.4 | ) | 3.1 | |||||||||
Total used | 421,155 | 415,501 | 1.4 | 10.4 | ||||||||||
Parts and service | 101,479 | 105,032 | (3.4 | ) | 5.1 | |||||||||
Finance, insurance and other, net | 26,498 | 26,338 | 0.6 | 9.4 | ||||||||||
Total | $ | 1,268,191 | $ | 1,293,260 | (1.9 | ) | 6.6 | |||||||
GROSS MARGIN %: | ||||||||||||||
New vehicle retail sales | 5.6 | 5.7 | ||||||||||||
Used vehicle retail sales | 5.1 | 5.2 | ||||||||||||
Used vehicle wholesale sales | (0.6 | ) | 0.1 | |||||||||||
Total used | 3.9 | 4.1 | ||||||||||||
Parts and service | 57.6 | 55.1 | ||||||||||||
Finance, insurance and other, net | 100.0 | 100.0 | ||||||||||||
Total | 11.2 | 11.1 | ||||||||||||
GROSS PROFIT: | ||||||||||||||
New vehicle retail sales | $ | 40,190 | $ | 42,704 | (5.9 | ) | 2.2 | |||||||
Used vehicle retail sales | 17,047 | 16,926 | 0.7 | 10.1 | ||||||||||
Used vehicle wholesale sales | (494 | ) | 92 | (637.0 | ) | (1,035.6 | ) | |||||||
Total used | 16,553 | 17,018 | (2.7 | ) | 4.4 | |||||||||
Parts and service | 58,473 | 57,903 | 1.0 | 9.7 | ||||||||||
Finance, insurance and other, net | 26,498 | 26,338 | 0.6 | 9.4 | ||||||||||
Total | $ | 141,714 | $ | 143,963 | (1.6 | ) | 7.1 | |||||||
UNITS SOLD: | ||||||||||||||
Retail new vehicles sold | 23,853 | 22,956 | 3.9 | |||||||||||
Retail used vehicles sold | 15,015 | 13,718 | 9.5 | |||||||||||
Wholesale used vehicles sold | 11,039 | 10,803 | 2.2 | |||||||||||
Total used | 26,054 | 24,521 | 6.3 | |||||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||||
New vehicle retail | $ | 30,145 | $ | 32,514 | (7.3 | ) | 0.7 | |||||||
Used vehicle retail | $ | 22,417 | $ | 23,775 | (5.7 | ) | 2.7 | |||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||||
New vehicle retail sales | $ | 1,685 | $ | 1,860 | (9.4 | ) | (1.6 | ) | ||||||
Used vehicle retail sales | 1,135 | 1,234 | (8.0 | ) | 0.6 | |||||||||
Used vehicle wholesale sales | (45 | ) | 9 | (600.0 | ) | (1,015.6 | ) | |||||||
Total used | 635 | 694 | (8.5 | ) | (1.7 | ) | ||||||||
Finance, insurance and other, net (per retail unit) | $ | 682 | $ | 718 | (5.0 | ) | 3.2 | |||||||
OTHER: | ||||||||||||||
SG&A expenses | $ | 113,338 | $ | 112,159 | 1.1 | 9.8 | ||||||||
Adjusted SG&A expenses (2) | $ | 113,050 | $ | 111,598 | 1.3 | 10.1 | ||||||||
SG&A as % revenues | 8.9 | 8.7 | ||||||||||||
Adjusted SG&A as % revenues (2) | 8.9 | 8.6 | ||||||||||||
SG&A as % gross profit | 80.0 | 77.9 | ||||||||||||
Adjusted SG&A as % gross profit (2) | 79.8 | 77.5 | ||||||||||||
Operating margin % | 1.9 | 2.1 | ||||||||||||
Adjusted operating margin % (2) | 1.9 | 2.1 | ||||||||||||
(1) Same Store amounts include the results for the identical months in each period presented in the comparison, commencing with the first full month we owned the dealership and, in the case of dispositions, ending with the last full month we owned it. Same Store results also include the activities of our corporate office.
(2) See the section of this release entitled "Non-GAAP Financial Measures " and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.
19
Group 1 Automotive, Inc. | ||||||||||||||
Additional Information - Same Store Brazil (1) | ||||||||||||||
(Unaudited) | ||||||||||||||
(Dollars in thousands, except per unit amounts) | ||||||||||||||
Three Months Ended September 30, | ||||||||||||||
2017 | 2016 | % Increase/(Decrease) | Constant Currency (2) % Increase/(Decrease) | |||||||||||
REVENUES: | ||||||||||||||
New vehicle retail sales | $ | 78,689 | $ | 72,086 | 9.2 | 6.5 | ||||||||
Used vehicle retail sales | 22,846 | 18,717 | 22.1 | 19.0 | ||||||||||
Used vehicle wholesale sales | 2,818 | 811 | 247.5 | 239.0 | ||||||||||
Total used | 25,664 | 19,528 | 31.4 | 28.1 | ||||||||||
Parts and service | 12,445 | 11,138 | 11.7 | 9.0 | ||||||||||
Finance, insurance and other, net | 2,157 | 1,595 | 35.2 | 31.9 | ||||||||||
Total | $ | 118,955 | $ | 104,347 | 14.0 | 11.2 | ||||||||
GROSS MARGIN %: | ||||||||||||||
New vehicle retail sales | 5.7 | 5.8 | ||||||||||||
Used vehicle retail sales | 7.4 | 7.7 | ||||||||||||
Used vehicle wholesale sales | 7.7 | 7.3 | ||||||||||||
Total used | 7.4 | 7.6 | ||||||||||||
Parts and service | 45.5 | 38.8 | ||||||||||||
Finance, insurance and other, net | 100.0 | 100.0 | ||||||||||||
Total | 11.9 | 11.1 | ||||||||||||
GROSS PROFIT: | ||||||||||||||
New vehicle retail sales | $ | 4,464 | $ | 4,182 | 6.7 | 4.2 | ||||||||
Used vehicle retail sales | 1,689 | 1,433 | 17.9 | 14.9 | ||||||||||
Used vehicle wholesale sales | 216 | 59 | 266.1 | 258.5 | ||||||||||
Total used | 1,905 | 1,492 | 27.7 | 24.5 | ||||||||||
Parts and service | 5,665 | 4,327 | 30.9 | 27.8 | ||||||||||
Finance, insurance and other, net | 2,157 | 1,595 | 35.2 | 31.9 | ||||||||||
Total | $ | 14,191 | $ | 11,596 | 22.4 | 19.4 | ||||||||
UNITS SOLD: | ||||||||||||||
Retail new vehicles sold | 2,155 | 2,152 | 0.1 | |||||||||||
Retail used vehicles sold | 1,028 | 922 | 11.5 | |||||||||||
Wholesale used vehicles sold | 242 | 283 | (14.5 | ) | ||||||||||
Total used | 1,270 | 1,205 | 5.4 | |||||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||||
New vehicle retail | $ | 36,515 | $ | 33,497 | 9.0 | 6.3 | ||||||||
Used vehicle retail | $ | 22,224 | $ | 20,300 | 9.5 | 6.7 | ||||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||||
New vehicle retail sales | $ | 2,071 | $ | 1,943 | 6.6 | 4.0 | ||||||||
Used vehicle retail sales | 1,643 | 1,554 | 5.7 | 3.1 | ||||||||||
Used vehicle wholesale sales | 893 | 208 | 329.3 | 319.2 | ||||||||||
Total used | 1,500 | 1,238 | 21.2 | 18.2 | ||||||||||
Finance, insurance and other, net (per retail unit) | $ | 678 | $ | 519 | 30.6 | 27.4 | ||||||||
OTHER: | ||||||||||||||
SG&A expenses | $ | 12,746 | $ | 11,762 | 8.4 | 5.7 | ||||||||
Adjusted SG&A expenses (2) | $ | 12,746 | $ | 11,488 | 11.0 | 8.2 | ||||||||
SG&A as % revenues | 10.7 | 11.3 | ||||||||||||
Adjusted SG&A as % revenues (2) | 10.7 | 11.0 | ||||||||||||
SG&A as % gross profit | 89.8 | 101.4 | ||||||||||||
Adjusted SG&A as % gross profit (2) | 89.8 | 99.1 | ||||||||||||
Operating margin % | 0.9 | (0.4 | ) | |||||||||||
Adjusted operating margin % (2) | 0.9 | (0.1 | ) | |||||||||||
20
Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | % Increase/(Decrease) | Constant Currency (2) % Increase/(Decrease) | |||||||||||
REVENUES: | ||||||||||||||
New vehicle retail sales | $ | 204,640 | $ | 200,165 | 2.2 | (7.8 | ) | |||||||
Used vehicle retail sales | 64,126 | 50,794 | 26.2 | 13.4 | ||||||||||
Used vehicle wholesale sales | 8,247 | 1,871 | 340.8 | 301.7 | ||||||||||
Total used | 72,373 | 52,665 | 37.4 | 23.6 | ||||||||||
Parts and service | 34,294 | 29,006 | 18.2 | 6.9 | ||||||||||
Finance, insurance and other, net | 5,913 | 4,178 | 41.5 | 28.1 | ||||||||||
Total | $ | 317,220 | $ | 286,014 | 10.9 | — | ||||||||
GROSS MARGIN %: | ||||||||||||||
New vehicle retail sales | 5.8 | 5.7 | ||||||||||||
Used vehicle retail sales | 7.3 | 5.9 | ||||||||||||
Used vehicle wholesale sales | 7.9 | 7.4 | ||||||||||||
Total used | 7.4 | 6.0 | ||||||||||||
Parts and service | 45.8 | 39.0 | ||||||||||||
Finance, insurance and other, net | 100.0 | 100.0 | ||||||||||||
Total | 12.2 | 10.5 | ||||||||||||
GROSS PROFIT: | ||||||||||||||
New vehicle retail sales | $ | 11,858 | $ | 11,394 | 4.1 | (6.2 | ) | |||||||
Used vehicle retail sales | 4,708 | 3,018 | 56.0 | 43.8 | ||||||||||
Used vehicle wholesale sales | 653 | 138 | 373.2 | 330.1 | ||||||||||
Total used | 5,361 | 3,156 | 69.9 | 56.3 | ||||||||||
Parts and service | 15,722 | 11,316 | 38.9 | 25.5 | ||||||||||
Finance, insurance and other, net | 5,913 | 4,178 | 41.5 | 28.1 | ||||||||||
Total | $ | 38,854 | $ | 30,044 | 29.3 | 17.0 | ||||||||
UNITS SOLD: | ||||||||||||||
Retail new vehicles sold | 5,864 | 6,690 | (12.3 | ) | ||||||||||
Retail used vehicles sold | 2,925 | 2,901 | 0.8 | |||||||||||
Wholesale used vehicles sold | 723 | 634 | 14.0 | |||||||||||
Total used | 3,648 | 3,535 | 3.2 | |||||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||||
New vehicle retail | $ | 34,898 | $ | 29,920 | 16.6 | 5.2 | ||||||||
Used vehicle retail | $ | 21,923 | $ | 17,509 | 25.2 | 12.4 | ||||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||||
New vehicle retail sales | $ | 2,022 | $ | 1,703 | 18.7 | 7.0 | ||||||||
Used vehicle retail sales | 1,610 | 1,040 | 54.8 | 42.6 | ||||||||||
Used vehicle wholesale sales | 903 | 218 | 314.2 | 277.1 | ||||||||||
Total used | 1,470 | 893 | 64.6 | 51.5 | ||||||||||
Finance, insurance and other, net (per retail unit) | $ | 673 | $ | 436 | 54.4 | 39.8 | ||||||||
OTHER: | ||||||||||||||
SG&A expenses | $ | 34,693 | $ | 29,192 | 18.8 | 7.6 | ||||||||
Adjusted SG&A expenses (2) | $ | 34,693 | $ | 28,918 | 20.0 | 8.6 | ||||||||
SG&A as % revenues | 10.9 | 10.2 | ||||||||||||
Adjusted SG&A as % revenues (2) | 10.9 | 10.1 | ||||||||||||
SG&A as % gross profit | 89.3 | 97.2 | ||||||||||||
Adjusted SG&A as % gross profit (2) | 89.3 | 96.3 | ||||||||||||
Operating margin % | 1.0 | — | ||||||||||||
Adjusted operating margin % (2) | 1.0 | 0.1 | ||||||||||||
(1) Same Store amounts include the results for the identical months in each period presented in the comparison, commencing with the first full month we owned the dealership and, in the case of dispositions, ending with the last full month we owned it. Same Store results also include the activities of our corporate office.
(2) See the section of this release entitled "Non-GAAP Financial Measures" and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.
21
Group 1 Automotive, Inc. | |||||||||||||||
Additional Information - Same Store Consolidated (1) | |||||||||||||||
(Unaudited) | |||||||||||||||
(Dollars in thousands, except per unit amounts) | |||||||||||||||
Three Months Ended September 30, | |||||||||||||||
2017 | 2016 | % Increase/(Decrease) | Constant Currency (2) % Increase/(Decrease) | ||||||||||||
REVENUES: | |||||||||||||||
New vehicle retail sales | $ | 1,632,489 | $ | 1,564,571 | 4.3 | 4.2 | |||||||||
Used vehicle retail sales | 701,226 | 691,715 | 1.4 | 1.3 | |||||||||||
Used vehicle wholesale sales | 95,935 | 102,722 | (6.6 | ) | (6.6 | ) | |||||||||
Total used | 797,161 | 794,437 | 0.3 | 0.3 | |||||||||||
Parts and service | 331,540 | 315,570 | 5.1 | 5.0 | |||||||||||
Finance, insurance and other, net | 106,839 | 106,914 | (0.1 | ) | (0.1 | ) | |||||||||
Total | $ | 2,868,029 | $ | 2,781,492 | 3.1 | 3.0 | |||||||||
GROSS MARGIN %: | |||||||||||||||
New vehicle retail sales | 5.2 | 5.1 | |||||||||||||
Used vehicle retail sales | 6.5 | 6.6 | |||||||||||||
Used vehicle wholesale sales | (0.3 | ) | (1.8 | ) | |||||||||||
Total used | 5.7 | 5.5 | |||||||||||||
Parts and service | 53.9 | 54.3 | |||||||||||||
Finance, insurance and other, net | 100.0 | 100.0 | |||||||||||||
Total | 14.5 | 14.4 | |||||||||||||
GROSS PROFIT: | |||||||||||||||
New vehicle retail sales | $ | 84,241 | $ | 79,371 | 6.1 | 5.9 | |||||||||
Used vehicle retail sales | 45,297 | 45,376 | (0.2 | ) | (0.2 | ) | |||||||||
Used vehicle wholesale sales | (254 | ) | (1,827 | ) | 86.1 | 85.5 | |||||||||
Total used | 45,043 | 43,549 | 3.4 | 3.4 | |||||||||||
Parts and service | 178,856 | 171,225 | 4.5 | 4.4 | |||||||||||
Finance, insurance and other, net | 106,839 | 106,914 | (0.1 | ) | (0.1 | ) | |||||||||
Total | $ | 414,979 | $ | 401,059 | 3.5 | 3.4 | |||||||||
UNITS SOLD: | |||||||||||||||
Retail new vehicles sold | 45,645 | 44,563 | 2.4 | ||||||||||||
Retail used vehicles sold | 32,215 | 32,365 | (0.5 | ) | |||||||||||
Wholesale used vehicles sold | 13,709 | 14,678 | (6.6 | ) | |||||||||||
Total used | 45,924 | 47,043 | (2.4 | ) | |||||||||||
AVERAGE RETAIL SALES PRICE: | |||||||||||||||
New vehicle retail | $ | 35,765 | $ | 35,109 | 1.9 | 1.7 | |||||||||
Used vehicle retail | $ | 21,767 | $ | 21,372 | 1.8 | 1.8 | |||||||||
GROSS PROFIT PER UNIT SOLD: | |||||||||||||||
New vehicle retail sales | $ | 1,846 | $ | 1,781 | 3.6 | 3.4 | |||||||||
Used vehicle retail sales | 1,406 | 1,402 | 0.3 | 0.2 | |||||||||||
Used vehicle wholesale sales | (19 | ) | (124 | ) | 84.7 | 84.5 | |||||||||
Total used | 981 | 926 | 5.9 | 5.9 | |||||||||||
Finance, insurance and other, net (per retail unit) | $ | 1,372 | $ | 1,390 | (1.3 | ) | (1.3 | ) | |||||||
22
OTHER: | |||||||||||||||
Adjusted Finance, insurance and other revenue, net(2) (3) | $ | 113,389 | $ | 106,914 | 6.1 | 6.0 | |||||||||
Adjusted Total revenue (2) | $ | 2,874,579 | $ | 2,781,492 | 3.3 | 3.2 | |||||||||
Adjusted Total gross profit (2) | $ | 421,529 | $ | 401,059 | 5.1 | 5.0 | |||||||||
Adjusted Total gross margin (2) | 14.7 | 14.4 | |||||||||||||
Adjusted Finance, insurance and other, net (per retail unit) (2) | $ | 1,456 | $ | 1,390 | 4.7 | 4.7 | |||||||||
SG&A expenses | $ | 313,146 | $ | 293,749 | 6.6 | 6.5 | |||||||||
Adjusted SG&A expenses (2) | $ | 303,479 | $ | 293,025 | 3.6 | 3.5 | |||||||||
SG&A as % revenues | 10.9 | 10.6 | |||||||||||||
Adjusted SG&A as % revenues (2) | 10.6 | 10.5 | |||||||||||||
SG&A as % gross profit | 75.5 | 73.2 | |||||||||||||
Adjusted SG&A as % gross profit (2) | 72.0 | 73.1 | |||||||||||||
Operating margin % | 2.7 | 3.0 | |||||||||||||
Adjusted operating margin % (2) | 3.6 | 3.4 | |||||||||||||
23
Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | % Increase/ (Decrease) | Constant Currency (2) % Increase/(Decrease) | ||||||||||||
REVENUES: | |||||||||||||||
New vehicle retail sales | $ | 4,364,999 | $ | 4,452,137 | (2.0 | ) | (1.0 | ) | |||||||
Used vehicle retail sales | 2,015,330 | 2,061,772 | (2.3 | ) | (1.1 | ) | |||||||||
Used vehicle wholesale sales | 292,131 | 293,234 | (0.4 | ) | 2.0 | ||||||||||
Total used | 2,307,461 | 2,355,006 | (2.0 | ) | (0.7 | ) | |||||||||
Parts and service | 970,961 | 930,493 | 4.3 | 5.0 | |||||||||||
Finance, insurance and other, net | 306,875 | 310,435 | (1.1 | ) | (0.6 | ) | |||||||||
Total | $ | 7,950,296 | $ | 8,048,071 | (1.2 | ) | (0.2 | ) | |||||||
GROSS MARGIN %: | |||||||||||||||
New vehicle retail sales | 5.2 | 5.2 | |||||||||||||
Used vehicle retail sales | 6.6 | 6.8 | |||||||||||||
Used vehicle wholesale sales | — | — | |||||||||||||
Total used | 5.8 | 6.0 | |||||||||||||
Parts and service | 53.9 | 54.1 | |||||||||||||
Finance, insurance and other, net | 100.0 | 100.0 | |||||||||||||
Total | 15.0 | 14.7 | |||||||||||||
GROSS PROFIT: | |||||||||||||||
New vehicle retail sales | $ | 225,956 | $ | 229,652 | (1.6 | ) | (0.6 | ) | |||||||
Used vehicle retail sales | 133,971 | 140,984 | (5.0 | ) | (4.1 | ) | |||||||||
Used vehicle wholesale sales | (73 | ) | 17 | (529.4 | ) | (3,053.6 | ) | ||||||||
Total used | 133,898 | 141,001 | (5.0 | ) | (4.5 | ) | |||||||||
Parts and service | 523,457 | 503,098 | 4.0 | 4.8 | |||||||||||
Finance, insurance and other, net | 306,875 | 310,435 | (1.1 | ) | (0.6 | ) | |||||||||
Total | $ | 1,190,186 | $ | 1,184,186 | 0.5 | 1.2 | |||||||||
UNITS SOLD: | |||||||||||||||
Retail new vehicles sold | 122,807 | 126,322 | (2.8 | ) | |||||||||||
Retail used vehicles sold | 94,096 | 96,206 | (2.2 | ) | |||||||||||
Wholesale used vehicles sold | 41,077 | 41,708 | (1.5 | ) | |||||||||||
Total used | 135,173 | 137,914 | (2.0 | ) | |||||||||||
AVERAGE RETAIL SALES PRICE: | |||||||||||||||
New vehicle retail | $ | 35,544 | $ | 35,244 | 0.8 | 1.8 | |||||||||
Used vehicle retail | $ | 21,418 | $ | 21,431 | (0.1 | ) | 1.1 | ||||||||
GROSS PROFIT PER UNIT SOLD: | |||||||||||||||
New vehicle retail sales | $ | 1,840 | $ | 1,818 | 1.2 | 2.2 | |||||||||
Used vehicle retail sales | 1,424 | 1,465 | (2.8 | ) | (2.0 | ) | |||||||||
Used vehicle wholesale sales | (2 | ) | — | — | (3,099.0 | ) | |||||||||
Total used | 991 | 1,022 | (3.0 | ) | (2.5 | ) | |||||||||
Finance, insurance and other, net (per retail unit) | $ | 1,415 | $ | 1,395 | 1.4 | 2.0 | |||||||||
24
OTHER: | |||||||||||||||
Adjusted Finance, insurance and other revenue, net (2) (3) | $ | 313,425 | $ | 310,435 | 1.0 | 1.5 | |||||||||
Adjusted Total revenue (2) | $ | 7,956,846 | $ | 8,048,071 | (1.1 | ) | (0.1 | ) | |||||||
Adjusted Total gross profit (2) | $ | 1,196,736 | $ | 1,184,186 | 1.1 | 1.8 | |||||||||
Adjusted Total gross margin (2) | 15.0 | 14.7 | |||||||||||||
Adjusted Finance, insurance and other, net (per retail unit) (2) | $ | 1,445 | $ | 1,395 | 3.6 | 4.2 | |||||||||
SG&A expenses | $ | 885,579 | $ | 866,513 | 2.2 | 3.0 | |||||||||
Adjusted SG&A expenses (2) | $ | 876,814 | $ | 859,391 | 2.0 | 2.8 | |||||||||
SG&A as % revenues | 11.1 | 10.8 | |||||||||||||
Adjusted SG&A as % revenues (2) | 11.0 | 10.7 | |||||||||||||
SG&A as % gross profit | 74.4 | 73.2 | |||||||||||||
Adjusted SG&A as % gross profit (2) | 73.3 | 72.6 | |||||||||||||
Operating margin % | 3.2 | 3.3 | |||||||||||||
Adjusted operating margin % (2) | 3.5 | 3.6 | |||||||||||||
(1) Same Store amounts include the results for the identical months in each period presented in the comparison, commencing with the first full month we owned the dealership and, in the case of dispositions, ending with the last full month we owned it. Same Store results also include the activities of our corporate office.
(2) See the section of this release entitled "Non-GAAP Financial Measures " and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.
(3) Finance, insurance and other revenue represents fees earned for the financing of vehicle sales transactions and from the sale of insurance and vehicle service contracts. Such amounts are reported net of estimated amounts to be charged back in the future. As a result, finance, insurance and other revenue and gross profit are the same.
25
Group 1 Automotive, Inc. | ||||||||||||
Reconciliation of Certain Non-GAAP Financial Measures - U.S. | ||||||||||||
(Unaudited) | ||||||||||||
(Dollars in thousands) | ||||||||||||
Three Months Ended September 30, | ||||||||||||
2017 | 2016 | % Increase/(Decrease) | ||||||||||
FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION: | ||||||||||||
As reported | $ | 96,383 | $ | 98,295 | (1.9 | ) | ||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Finance, insurance and other revenue, net (1) | $ | 102,933 | $ | 98,295 | 4.7 | |||||||
TOTAL REVENUES RECONCILIATION: | ||||||||||||
As reported | $ | 2,301,959 | $ | 2,274,723 | 1.2 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Total Revenues (1) | $ | 2,308,509 | $ | 2,274,723 | 1.5 | |||||||
TOTAL GROSS PROFIT RECONCILIATION: | ||||||||||||
As reported | $ | 353,567 | $ | 346,726 | 2.0 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Total Gross Profit (1) | $ | 360,117 | $ | 346,726 | 3.9 | |||||||
SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 261,787 | $ | 246,501 | 6.2 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | (8,149 | ) | (450 | ) | ||||||||
Gain (loss) on real estate and dealership transactions | (798 | ) | 1,176 | |||||||||
Legal settlements | (720 | ) | — | |||||||||
Adjusted SG&A (1) | $ | 252,120 | $ | 247,227 | 2.0 | |||||||
TOTAL GROSS MARGIN %: | ||||||||||||
Unadjusted | 15.4 | 15.2 | ||||||||||
Adjusted (1) | 15.6 | 15.2 | ||||||||||
FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT): | ||||||||||||
Unadjusted | $ | 1,566 | $ | 1,588 | (1.4 | ) | ||||||
Adjusted (1) | $ | 1,673 | $ | 1,588 | 5.4 | |||||||
SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 11.4 | 10.8 | ||||||||||
Adjusted (1) | 11.0 | 10.9 | ||||||||||
SG&A AS % GROSS PROFIT: | ||||||||||||
Unadjusted | 74.0 | 71.1 | ||||||||||
Adjusted (1) | 70.0 | 71.3 | ||||||||||
OPERATING MARGIN %: | ||||||||||||
Unadjusted | 3.0 | 3.4 | ||||||||||
Adjusted (1), (2) | 4.1 | 3.9 | ||||||||||
PRETAX MARGIN %: | ||||||||||||
Unadjusted | 1.8 | 2.3 | ||||||||||
Adjusted (1), (2) | 2.9 | 2.8 | ||||||||||
SAME STORE FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION: | ||||||||||||
As reported | $ | 95,195 | $ | 96,685 | (1.5 | ) | ||||||
26
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Finance, insurance and other revenue, net (1) | $ | 101,745 | $ | 96,685 | 5.2 | |||||||
SAME STORE TOTAL REVENUES RECONCILIATION: | ||||||||||||
As reported | $ | 2,280,189 | $ | 2,246,322 | 1.5 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Total Revenues (1) | $ | 2,286,739 | $ | 2,246,322 | 1.8 | |||||||
SAME STORE TOTAL GROSS PROFIT RECONCILIATION: | ||||||||||||
As reported | $ | 349,888 | $ | 342,602 | 2.1 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Total Gross Profit (1) | $ | 356,438 | $ | 342,602 | 4.0 | |||||||
SAME STORE SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 258,862 | $ | 243,151 | 6.5 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | (8,149 | ) | (450 | ) | ||||||||
Loss on real estate and dealership transactions | (798 | ) | — | |||||||||
Legal settlements | (720 | ) | — | |||||||||
Adjusted Same Store SG&A (1) | $ | 249,195 | $ | 242,701 | 2.7 | |||||||
SAME STORE TOTAL GROSS MARGIN %: | ||||||||||||
Unadjusted | 15.3 | 15.3 | ||||||||||
Adjusted (1) | 15.6 | 15.3 | ||||||||||
SAME STORE FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT): | ||||||||||||
Unadjusted | $ | 1,560 | $ | 1,588 | (1.8 | ) | ||||||
Adjusted (1) | $ | 1,668 | $ | 1,588 | 5.0 | |||||||
SAME STORE SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 11.4 | 10.8 | ||||||||||
Adjusted (1) | 10.9 | 10.8 | ||||||||||
SAME STORE SG&A AS % GROSS PROFIT: | ||||||||||||
Unadjusted | 74.0 | 71.0 | ||||||||||
Adjusted (1) | 69.9 | 70.8 | ||||||||||
SAME STORE OPERATING MARGIN % | ||||||||||||
Unadjusted | 3.0 | 3.5 | ||||||||||
Adjusted (1), (3) | 4.2 | 4.0 | ||||||||||
27
Nine Months Ended September 30, | ||||||||||||
2017 | 2016 | % Increase/(Decrease) | ||||||||||
FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION: | ||||||||||||
As reported | $ | 276,754 | $ | 284,644 | (2.8 | ) | ||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Finance, insurance and other revenue, net (1) | $ | 283,304 | $ | 284,644 | (0.5 | ) | ||||||
TOTAL REVENUES RECONCILIATION: | ||||||||||||
As reported | $ | 6,393,368 | $ | 6,563,739 | (2.6 | ) | ||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Total Revenues (1) | $ | 6,399,918 | $ | 6,563,739 | (2.5 | ) | ||||||
TOTAL GROSS PROFIT RECONCILIATION: | ||||||||||||
As reported | $ | 1,014,636 | $ | 1,024,033 | (0.9 | ) | ||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Total Gross Profit (1) | $ | 1,021,186 | $ | 1,024,033 | (0.3 | ) | ||||||
SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 741,904 | $ | 737,730 | 0.6 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | (8,792 | ) | (5,873 | ) | ||||||||
Gain (loss) on real estate and dealership transactions | (798 | ) | 1,856 | |||||||||
Acquisition costs | — | (30 | ) | |||||||||
Legal settlements (4) | 1,113 | — | ||||||||||
Adjusted SG&A (1) | $ | 733,427 | $ | 733,683 | — | |||||||
TOTAL GROSS MARGIN %: | ||||||||||||
Unadjusted | 15.9 | 15.6 | ||||||||||
Adjusted (1) | 16.0 | 15.6 | ||||||||||
FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT): | ||||||||||||
Unadjusted | $ | 1,628 | $ | 1,585 | 2.7 | |||||||
Adjusted (1) | $ | 1,667 | $ | 1,585 | 5.2 | |||||||
SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 11.6 | 11.2 | ||||||||||
Adjusted (1) | 11.5 | 11.2 | ||||||||||
SG&A AS % OF GROSS PROFIT: | ||||||||||||
Unadjusted | 73.1 | 72.0 | ||||||||||
Adjusted (1) | 71.8 | 71.6 | ||||||||||
OPERATING MARGIN %: | ||||||||||||
Unadjusted | 3.6 | 3.7 | ||||||||||
Adjusted (1), (2) | 3.9 | 3.9 | ||||||||||
PRETAX MARGIN %: | ||||||||||||
Unadjusted | 2.2 | 2.5 | ||||||||||
Adjusted (1), (2) | 2.6 | 2.8 | ||||||||||
SAME STORE FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION: | ||||||||||||
As reported | $ | 274,464 | $ | 279,919 | (1.9 | ) | ||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Finance, insurance and other revenue, net (1) | $ | 281,014 | $ | 279,919 | 0.4 | |||||||
28
SAME STORE TOTAL REVENUES RECONCILIATION: | ||||||||||||
As reported | $ | 6,364,885 | $ | 6,468,797 | (1.6 | ) | ||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Total Revenues (1) | $ | 6,371,435 | $ | 6,468,797 | (1.5 | ) | ||||||
SAME STORE TOTAL GROSS PROFIT RECONCILIATION: | ||||||||||||
As reported | $ | 1,009,618 | $ | 1,010,179 | (0.1 | ) | ||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Total Gross Profit (1) | $ | 1,016,168 | $ | 1,010,179 | 0.6 | |||||||
SAME STORE SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 737,548 | $ | 725,162 | 1.7 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | (8,792 | ) | (5,873 | ) | ||||||||
Loss on real estate and dealership transactions | (798 | ) | (384 | ) | ||||||||
Acquisition costs | — | (30 | ) | |||||||||
Legal settlements (4) | 1,113 | — | ||||||||||
Adjusted Same Store SG&A (1) | $ | 729,071 | $ | 718,875 | 1.4 | |||||||
SAME STORE TOTAL GROSS MARGIN %: | ||||||||||||
Unadjusted | 15.9 | 15.6 | ||||||||||
Adjusted (1) | 15.9 | 15.6 | ||||||||||
SAME STORE FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT): | ||||||||||||
Unadjusted | $ | 1,622 | $ | 1,588 | 2.1 | |||||||
Adjusted (1) | $ | 1,660 | $ | 1,588 | 4.5 | |||||||
SAME STORE SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 11.6 | 11.2 | ||||||||||
Adjusted (1) | 11.5 | 11.1 | ||||||||||
SAME STORE SG&A AS % GROSS PROFIT: | ||||||||||||
Unadjusted | 73.1 | 71.8 | ||||||||||
Adjusted (1) | 71.7 | 71.2 | ||||||||||
SAME STORE OPERATING MARGIN % | ||||||||||||
Unadjusted | 3.6 | 3.7 | ||||||||||
Adjusted (1), (3) | 4.0 | 4.0 | ||||||||||
(1) | See the section of this release entitled "Non-GAAP Financial Measures" for information regarding non-GAAP financial measures and certain selected items that the Company believes impact comparability of financial results between reporting periods. | |||||||||||
(2) | Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $9,526 for the three and nine months ended September 30, 2017, respectively, and $10,855 and $12,389 for the three and nine months ended September 30, 2016, respectively. | |||||||||||
(3) | Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $9,526 for the three and nine months ended September 30, 2017, respectively, and $10,793 and $12,327 for the three and nine months ended September 30, 2016, respectively. | |||||||||||
(4) | For the nine months ended September 30, 2017, the Company recognized a net pre-tax gain related to a settlement with an OEM of $1.8 million. | |||||||||||
29
Group 1 Automotive, Inc. | ||||||||||||
Reconciliation of Certain Non-GAAP Financial Measures - U.K. | ||||||||||||
(Unaudited) | ||||||||||||
(Dollars in thousands) | ||||||||||||
Nine Months Ended September 30, | ||||||||||||
2017 | 2016 | % Increase/(Decrease) | ||||||||||
SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 137,475 | $ | 119,154 | 15.4 | |||||||
Pre-tax adjustments: | ||||||||||||
Acquisition costs | (288 | ) | (561 | ) | ||||||||
Adjusted SG&A (1) | $ | 137,187 | $ | 118,593 | 15.7 | |||||||
SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 9.3 | 8.9 | ||||||||||
Adjusted (1) | 9.3 | 8.9 | ||||||||||
SG&A AS % OF GROSS PROFIT: | ||||||||||||
Unadjusted | 83.4 | 80.2 | ||||||||||
Adjusted (1) | 83.2 | 79.8 | ||||||||||
OPERATING MARGIN %: | ||||||||||||
Unadjusted | 1.5 | 1.8 | ||||||||||
Adjusted (1) | 1.5 | 1.9 | ||||||||||
PRETAX MARGIN %: | ||||||||||||
Unadjusted | 1.1 | 1.3 | ||||||||||
Adjusted (1) | 1.1 | 1.3 | ||||||||||
SAME STORE SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 113,338 | $ | 112,159 | 1.1 | |||||||
Pre-tax adjustments: | ||||||||||||
Acquisition costs | (288 | ) | (561 | ) | ||||||||
Adjusted Same Store SG&A (1) | $ | 113,050 | $ | 111,598 | 1.3 | |||||||
SAME STORE SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 8.9 | 8.7 | ||||||||||
Adjusted (1) | 8.9 | 8.6 | ||||||||||
SAME STORE SG&A AS % GROSS PROFIT: | ||||||||||||
Unadjusted | 80.0 | 77.9 | ||||||||||
Adjusted (1) | 79.8 | 77.5 | ||||||||||
SAME STORE OPERATING MARGIN % | ||||||||||||
Unadjusted | 1.9 | 2.1 | ||||||||||
Adjusted (1) | 1.9 | 2.1 | ||||||||||
(1) | See the section of this release entitled "Non-GAAP Financial Measures" for information regarding non-GAAP financial measures and certain selected items that the Company believes impact comparability of financial results between reporting periods. | |||||||||||
30
Group 1 Automotive, Inc. | ||||||||||||
Reconciliation of Certain Non-GAAP Financial Measures - Brazil | ||||||||||||
(Unaudited) | ||||||||||||
(Dollars in thousands) | ||||||||||||
Three Months Ended September 30, | ||||||||||||
2017 | 2016 | % Increase/(Decrease) | ||||||||||
SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 13,145 | $ | 12,896 | 1.9 | |||||||
Pre-tax adjustments: | ||||||||||||
Foreign transaction tax | — | (274 | ) | |||||||||
Adjusted SG&A (1) | $ | 13,145 | $ | 12,622 | 4.1 | |||||||
SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 11.0 | 11.5 | ||||||||||
Adjusted (1) | 11.0 | 11.2 | ||||||||||
SG&A AS % GROSS PROFIT: | ||||||||||||
Unadjusted | 92.2 | 103.6 | ||||||||||
Adjusted (1) | 92.2 | 101.4 | ||||||||||
OPERATING MARGIN % | ||||||||||||
Unadjusted | 0.6 | (0.6 | ) | |||||||||
Adjusted (1) | 0.6 | (0.4 | ) | |||||||||
PRETAX MARGIN %: | ||||||||||||
Unadjusted | 0.5 | (0.8 | ) | |||||||||
Adjusted (1) | 0.5 | (0.5 | ) | |||||||||
SAME STORE SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 12,746 | $ | 11,762 | 8.4 | |||||||
Pre-tax adjustments: | ||||||||||||
Foreign transaction tax | — | (274 | ) | |||||||||
Adjusted Same Store SG&A (1) | $ | 12,746 | $ | 11,488 | 11.0 | |||||||
SAME STORE SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 10.7 | 11.3 | ||||||||||
Adjusted (1) | 10.7 | 11.0 | ||||||||||
SAME STORE SG&A AS % GROSS PROFIT: | ||||||||||||
Unadjusted | 89.8 | 101.4 | ||||||||||
Adjusted (1) | 89.8 | 99.1 | ||||||||||
SAME STORE OPERATING MARGIN % | ||||||||||||
Unadjusted | 0.9 | (0.4 | ) | |||||||||
Adjusted (1) | 0.9 | (0.1 | ) | |||||||||
31
Nine Months Ended September 30, | ||||||||||||
2017 | 2016 | % Increase/(Decrease) | ||||||||||
SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 37,295 | $ | 34,808 | 7.1 | |||||||
Pre-tax adjustments: | ||||||||||||
Gain (loss) on real estate and dealership transactions | — | (372 | ) | |||||||||
Foreign transaction tax | — | (274 | ) | |||||||||
Adjusted SG&A (1) | $ | 37,295 | $ | 34,162 | 9.2 | |||||||
SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 11.2 | 11.1 | ||||||||||
Adjusted (1) | 11.2 | 10.9 | ||||||||||
SG&A AS % OF GROSS PROFIT: | ||||||||||||
Unadjusted | 92.4 | 104.6 | ||||||||||
Adjusted (1) | 92.4 | 102.6 | ||||||||||
OPERATING MARGIN %: | ||||||||||||
Unadjusted | 0.6 | (0.9 | ) | |||||||||
Adjusted (1), (2) | 0.6 | (0.5 | ) | |||||||||
PRETAX MARGIN %: | ||||||||||||
Unadjusted | 0.4 | (1.0 | ) | |||||||||
Adjusted (1), (2) | 0.4 | (0.7 | ) | |||||||||
SAME STORE SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 34,693 | $ | 29,192 | 18.8 | |||||||
Pre-tax adjustments: | ||||||||||||
Foreign transaction tax | — | (274 | ) | |||||||||
Adjusted Same Store SG&A (1) | $ | 34,693 | $ | 28,918 | 20.0 | |||||||
SAME STORE SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 10.9 | 10.2 | ||||||||||
Adjusted (1) | 10.9 | 10.1 | ||||||||||
SAME STORE SG&A AS % GROSS PROFIT: | ||||||||||||
Unadjusted | 89.3 | 97.2 | ||||||||||
Adjusted (1) | 89.3 | 96.3 | ||||||||||
SAME STORE OPERATING MARGIN % | ||||||||||||
Unadjusted | 1.0 | — | ||||||||||
Adjusted (1) | 1.0 | 0.1 | ||||||||||
(1) | See the section of this release entitled "Non-GAAP Financial Measures" for information regarding non-GAAP financial measures and certain selected items that the Company believes impact comparability of financial results between reporting periods. | |||||||||||
(2) | Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $423 for the nine months ended September 30, 2016. | |||||||||||
32
Group 1 Automotive, Inc. | ||||||||||||
Reconciliation of Certain Non-GAAP Financial Measures - Consolidated | ||||||||||||
(Unaudited) | ||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||
Three Months Ended September 30, | ||||||||||||
2017 | 2016 | % Increase/(Decrease) | ||||||||||
NET INCOME RECONCILIATION: | ||||||||||||
As reported | $ | 29,881 | $ | 35,366 | (15.5 | ) | ||||||
Adjustments: | ||||||||||||
Catastrophic events | ||||||||||||
Pre-tax | 14,699 | 450 | ||||||||||
Tax impact | (5,677 | ) | (169 | ) | ||||||||
(Gain) loss on real estate and dealership transactions | ||||||||||||
Pre-tax | 798 | (1,114 | ) | |||||||||
Tax impact | (301 | ) | 418 | |||||||||
Legal settlements | ||||||||||||
Pre-tax | 720 | — | ||||||||||
Tax impact | (270 | ) | — | |||||||||
Foreign transaction tax | ||||||||||||
Pre-tax | — | 274 | ||||||||||
Tax impact | — | — | ||||||||||
Non-cash asset impairment | ||||||||||||
Pre-tax | 9,526 | 10,793 | ||||||||||
Tax impact | (3,579 | ) | (4,047 | ) | ||||||||
Allowance for uncertain tax positions | ||||||||||||
Pre-tax | — | — | ||||||||||
Tax impact | 834 | — | ||||||||||
Adjusted net income (1) | $ | 46,631 | $ | 41,971 | 11.1 | |||||||
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION: | ||||||||||||
Adjusted net income (1) | $ | 46,631 | $ | 41,971 | 11.1 | |||||||
Less: Adjusted earnings allocated to participating securities | 1,603 | 1,695 | (5.4 | ) | ||||||||
Adjusted net income available to diluted common shares (1) | $ | 45,028 | $ | 40,276 | 11.8 | |||||||
DILUTED INCOME PER COMMON SHARE RECONCILIATION: | ||||||||||||
As reported | $ | 1.43 | $ | 1.65 | (13.3 | ) | ||||||
After-tax adjustments: | ||||||||||||
Catastrophic events | 0.44 | 0.01 | ||||||||||
(Gain) loss on real estate and dealership transactions | 0.02 | (0.03 | ) | |||||||||
Legal settlements | 0.02 | — | ||||||||||
Foreign transaction tax | — | 0.01 | ||||||||||
Non-cash asset impairment | 0.28 | 0.32 | ||||||||||
Allowance for uncertain tax positions | 0.04 | — | ||||||||||
Adjusted diluted income per share (1) | $ | 2.23 | $ | 1.96 | 13.8 | |||||||
FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION: | ||||||||||||
As reported | $ | 110,993 | $ | 108,710 | 2.1 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Finance, insurance and other revenue, net (1) | $ | 117,543 | $ | 108,710 | 8.1 | |||||||
33
TOTAL REVENUES RECONCILIATION: | ||||||||||||
As reported | $ | 3,012,292 | $ | 2,823,176 | 6.7 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Total Revenues (1) | $ | 3,018,842 | $ | 2,823,176 | 6.9 | |||||||
TOTAL GROSS PROFIT RECONCILIATION: | ||||||||||||
As reported | $ | 431,420 | $ | 406,668 | 6.1 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Total Gross Profit (1) | $ | 437,970 | $ | 406,668 | 7.7 | |||||||
SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 328,327 | $ | 299,006 | 9.8 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | (8,149 | ) | (450 | ) | ||||||||
Gain (loss) on real estate and dealership transactions | (798 | ) | 1,176 | |||||||||
Legal settlements | (720 | ) | — | |||||||||
Foreign transaction tax | — | (274 | ) | |||||||||
Adjusted SG&A (1) | $ | 318,660 | $ | 299,458 | 6.4 | |||||||
TOTAL GROSS MARGIN %: | ||||||||||||
Unadjusted | 14.3 | 14.4 | ||||||||||
Adjusted (1) | 14.5 | 14.4 | ||||||||||
FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT): | ||||||||||||
Unadjusted | $ | 1,343 | $ | 1,383 | (2.9 | ) | ||||||
Adjusted (1) | $ | 1,422 | $ | 1,383 | 2.8 | |||||||
SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 10.9 | 10.6 | ||||||||||
Adjusted (1) | 10.6 | 10.6 | ||||||||||
SG&A AS % GROSS PROFIT: | ||||||||||||
Unadjusted | 76.1 | 73.5 | ||||||||||
Adjusted (1) | 72.8 | 73.6 | ||||||||||
OPERATING MARGIN % | ||||||||||||
Unadjusted | 2.6 | 3.0 | ||||||||||
Adjusted (1), (2) | 3.5 | 3.3 | ||||||||||
PRETAX MARGIN %: | ||||||||||||
Unadjusted | 1.6 | 2.0 | ||||||||||
Adjusted (1), (2) | 2.4 | 2.3 | ||||||||||
34
SAME STORE FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION: | ||||||||||||
As reported | $ | 106,839 | $ | 106,914 | (0.1 | ) | ||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Finance, insurance and other revenue, net (1) | $ | 113,389 | $ | 106,914 | 6.1 | |||||||
SAME STORE TOTAL REVENUES RECONCILIATION: | ||||||||||||
As reported | $ | 2,868,029 | $ | 2,781,492 | 3.1 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Total Revenues (1) | $ | 2,874,579 | $ | 2,781,492 | 3.3 | |||||||
SAME STORE TOTAL GROSS PROFIT RECONCILIATION: | ||||||||||||
As reported | $ | 414,979 | $ | 401,059 | 3.5 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Total Gross Profit (1) | $ | 421,529 | $ | 401,059 | 5.1 | |||||||
SAME STORE SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 313,146 | $ | 293,749 | 6.6 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | (8,149 | ) | (450 | ) | ||||||||
Loss on real estate and dealership transactions | (798 | ) | — | |||||||||
Legal settlements | (720 | ) | — | |||||||||
Foreign transaction tax | — | (274 | ) | |||||||||
Adjusted Same Store SG&A (1) | $ | 303,479 | $ | 293,025 | 3.6 | |||||||
SAME STORE TOTAL GROSS MARGIN %: | ||||||||||||
Unadjusted | 14.5 | 14.4 | ||||||||||
Adjusted (1) | 14.7 | 14.4 | ||||||||||
SAME STORE FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT): | ||||||||||||
Unadjusted | $ | 1,372 | $ | 1,390 | (1.3 | ) | ||||||
Adjusted (1) | $ | 1,456 | $ | 1,390 | 4.7 | |||||||
SAME STORE SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 10.9 | 10.6 | ||||||||||
Adjusted (1) | 10.6 | 10.5 | ||||||||||
SAME STORE SG&A AS % GROSS PROFIT: | ||||||||||||
Unadjusted | 75.5 | 73.2 | ||||||||||
Adjusted (1) | 72.0 | 73.1 | ||||||||||
SAME STORE OPERATING MARGIN % | ||||||||||||
Unadjusted | 2.7 | 3.0 | ||||||||||
Adjusted (1), (3) | 3.6 | 3.4 | ||||||||||
35
Nine Months Ended September 30, | ||||||||||||
2017 | 2016 | % Increase/ (Decrease) | ||||||||||
NET INCOME RECONCILIATION: | ||||||||||||
As reported | $ | 102,953 | $ | 116,237 | (11.4 | ) | ||||||
Adjustments: | ||||||||||||
Catastrophic events | ||||||||||||
Pre-tax | 15,341 | 5,873 | ||||||||||
Tax impact | (5,926 | ) | (2,207 | ) | ||||||||
(Gain) loss on real estate and dealership transactions | — | — | ||||||||||
Pre-tax | 798 | (1,000 | ) | |||||||||
Tax impact | (301 | ) | 672 | |||||||||
Acquisition costs | — | — | ||||||||||
Pre-tax | 288 | 591 | ||||||||||
Tax impact | — | (11 | ) | |||||||||
Legal settlements (4) | — | — | ||||||||||
Pre-tax | (1,113 | ) | — | |||||||||
Tax impact | 426 | — | ||||||||||
Foreign transaction tax | — | — | ||||||||||
Pre-tax | — | 274 | ||||||||||
Tax impact | — | — | ||||||||||
Non-cash asset impairment | — | — | ||||||||||
Pre-tax | 9,526 | 12,327 | ||||||||||
Tax impact | (3,579 | ) | (4,634 | ) | ||||||||
Allowance for uncertain tax positions | — | — | ||||||||||
Pre-tax | — | — | ||||||||||
Tax impact | 834 | — | ||||||||||
Foreign deferred income tax benefit | — | — | ||||||||||
Pre-tax | — | — | ||||||||||
Tax impact | — | (1,686 | ) | |||||||||
Adjusted net income (1) | $ | 119,247 | $ | 126,436 | (5.7 | ) | ||||||
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION: | ||||||||||||
Adjusted net income (1) | $ | 119,247 | $ | 126,436 | (5.7 | ) | ||||||
Less: Adjusted earnings allocated to participating securities | 4,248 | 5,061 | (16.1 | ) | ||||||||
Adjusted net income available to diluted common shares (1) | $ | 114,999 | $ | 121,375 | (5.3 | ) | ||||||
DILUTED INCOME PER COMMON SHARE RECONCILIATION: | ||||||||||||
As reported | $ | 4.85 | $ | 5.22 | (7.1 | ) | ||||||
After-tax adjustments: | ||||||||||||
Catastrophic events | 0.44 | 0.16 | ||||||||||
(Gain) loss on real estate and dealership transactions | 0.03 | (0.01 | ) | |||||||||
Acquisition costs including related tax impact | 0.02 | 0.02 | ||||||||||
Legal settlements | (0.03 | ) | — | |||||||||
Foreign transaction tax | — | 0.01 | ||||||||||
Non-cash asset impairment | 0.27 | 0.35 | ||||||||||
Allowance for uncertain tax positions | 0.04 | — | ||||||||||
Foreign deferred income tax benefit | — | (0.07 | ) | |||||||||
Adjusted diluted income per share (1) | $ | 5.62 | $ | 5.68 | (1.1 | ) | ||||||
FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION: | ||||||||||||
36
As reported | $ | 314,297 | $ | 316,419 | (0.7 | ) | ||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Finance, insurance and other revenue, net (1) | $ | 320,487 | $ | 316,419 | 1.4 | |||||||
TOTAL REVENUES RECONCILIATION: | ||||||||||||
As reported | $ | 8,203,316 | $ | 8,213,980 | (0.1 | ) | ||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Total Revenues (1) | $ | 8,209,866 | $ | 8,213,980 | (0.1 | ) | ||||||
TOTAL GROSS PROFIT RECONCILIATION: | ||||||||||||
As reported | $ | 1,219,834 | $ | 1,205,888 | 1.2 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Total Gross Profit (1) | $ | 1,226,384 | $ | 1,205,888 | 1.7 | |||||||
SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 916,674 | $ | 891,692 | 2.8 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | (8,792 | ) | (5,873 | ) | ||||||||
Gain (loss) on real estate and dealership transactions | (798 | ) | 1,485 | |||||||||
Acquisition costs | (288 | ) | (591 | ) | ||||||||
Legal settlements | 1,113 | — | ||||||||||
Foreign transaction tax | — | (274 | ) | |||||||||
Adjusted SG&A (1) | $ | 907,909 | $ | 886,439 | 2.4 | |||||||
TOTAL GROSS MARGIN %: | ||||||||||||
Unadjusted | 14.9 | 14.7 | ||||||||||
Adjusted (1) | 14.9 | 14.7 | ||||||||||
FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT): | ||||||||||||
Unadjusted | $ | 1,394 | $ | 1,383 | 0.8 | |||||||
Adjusted (1) | $ | 1,423 | $ | 1,383 | 2.9 | |||||||
SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 11.2 | 10.9 | ||||||||||
Adjusted (1) | 11.1 | 10.8 | ||||||||||
SG&A AS % OF GROSS PROFIT: | ||||||||||||
Unadjusted | 75.1 | 73.9 | ||||||||||
Adjusted (1) | 74.0 | 73.5 | ||||||||||
OPERATING MARGIN %: | ||||||||||||
Unadjusted | 3.1 | 3.2 | ||||||||||
Adjusted (1), (2) | 3.4 | 3.4 | ||||||||||
PRETAX MARGIN %: | ||||||||||||
Unadjusted | 2.0 | 2.2 | ||||||||||
Adjusted (1), (2) | 2.3 | 2.4 | ||||||||||
SAME STORE FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION: | ||||||||||||
As reported | $ | 306,875 | $ | 310,435 | (1.1 | ) | ||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Finance, insurance and other revenue, net (1) | $ | 313,425 | $ | 310,435 | 1.0 | |||||||
SAME STORE TOTAL REVENUES RECONCILIATION: | ||||||||||||
As reported | $ | 7,950,296 | $ | 8,048,071 | (1.2 | ) | ||||||
37
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Total Revenues (1) | $ | 7,956,846 | $ | 8,048,071 | (1.1 | ) | ||||||
SAME STORE TOTAL GROSS PROFIT RECONCILIATION: | ||||||||||||
As reported | $ | 1,190,186 | $ | 1,184,186 | 0.5 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Total Gross Profit (1) | $ | 1,196,736 | $ | 1,184,186 | 1.1 | |||||||
SAME STORE SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 885,579 | $ | 866,513 | 2.2 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | (8,792 | ) | (5,873 | ) | ||||||||
Loss on real estate and dealership transactions | (798 | ) | (384 | ) | ||||||||
Acquisition costs | (288 | ) | (591 | ) | ||||||||
Legal settlements | 1,113 | — | ||||||||||
Foreign transaction tax | — | (274 | ) | |||||||||
Adjusted Same Store SG&A (1) | $ | 876,814 | $ | 859,391 | 2.0 | |||||||
SAME STORE TOTAL GROSS MARGIN %: | ||||||||||||
Unadjusted | 15.0 | 14.7 | ||||||||||
Adjusted (1) | 15.0 | 14.7 | ||||||||||
SAME STORE FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT): | ||||||||||||
Unadjusted | $ | 1,415 | $ | 1,395 | 1.4 | |||||||
Adjusted (1) | $ | 1,445 | $ | 1,395 | 3.6 | |||||||
SAME STORE SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 11.1 | 10.8 | ||||||||||
Adjusted (1) | 11.0 | 10.7 | ||||||||||
SAME STORE SG&A AS % GROSS PROFIT: | ||||||||||||
Unadjusted | 74.4 | 73.2 | ||||||||||
Adjusted (1) | 73.3 | 72.6 | ||||||||||
SAME STORE OPERATING MARGIN % | ||||||||||||
Unadjusted | 3.2 | 3.3 | ||||||||||
Adjusted (1), (3) | 3.5 | 3.6 | ||||||||||
(1) | See the section of this release entitled "Non-GAAP Financial Measures" for information regarding non-GAAP financial measures and certain selected items that the Company believes impact comparability of financial results between reporting periods. | |||||||||||
(2) | Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $9,526 for the three and nine months ended September 30, 2017 and $10,855 and $12,812 for the three and nine months ended September 30, 2016, respectively. | |||||||||||
(3) | Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $9,526 for the three and nine months ended September 30, 2017 and $10,794 and $12,327 for the three and nine months ended September 30, 2016, respectively. | |||||||||||
(4) | For the nine months ended September 30, 2017, the Company recognized a net pre-tax gain related to a settlement with an OEM of $1.8 million. | |||||||||||
38