GROUP 1 AUTOMOTIVE INC - FORM 8-K - EX-99.1 - 2018 2ND QUARTER 8-K EXHIBIT 99.1

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8-K - 2018 2ND QUARTER 8-K - GROUP 1 AUTOMOTIVE INC	a20182ndquarterearningsrel.htm

FOR IMMEDIATE RELEASE

Group 1 Automotive Announces Second Quarter 2018 Financial Results

Record Results Driven by Company-Wide Focus on Used Vehicles and Strong Cost Control

HOUSTON, July 26, 2018 - Group 1 Automotive, Inc. (NYSE: GPI), (“Group 1” or the “Company”), an international, Fortune 500 automotive retailer, today reported 2018 second quarter net income of $56.5 million, diluted earnings per common share of $2.72, adjusted net income (a non-GAAP measure) of $50.8 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $2.45.

Second quarter 2018 adjusted net income and diluted earnings per share exclude approximately $5.7 million net after-tax adjustments, or $0.27 per common share. These adjustments consisted of a net gain on real estate and dealership transactions, which was approximately $15.2 million, or $0.73 per common share, partially offset by the impact of catastrophic events of $4.4 million, or $0.21 per common share; non-cash asset impairments of $3.2 million, or $0.15 per common share; and legal settlements of approximately $2.0 million, or $0.10 per common share.

“We delivered a solid quarter, reflecting a relatively strong U.S. vehicle market in June, favorable overall performance in the U.K., a corporate-wide focus on our used vehicle business, and a major cost reduction initiative in both the U.S. and the U.K. early this year that began to pay dividends this quarter,” said Earl J. Hesterberg, Group 1’s president and chief executive officer. “These results demonstrate our ability to grow earnings in a flat retail sales environment. In addition, during the quarter, the Company has launched a renewed focus on capital deployment, with an emphasis on actions, such as disposal of underperforming assets, more stringent control of capital expenditures, and enhanced share repurchases, targeted at delivering improved shareholder value. Actions taken this quarter include the disposal of a large underperforming dealership and a stepped-up pace of share repurchases.”

Consolidated Results for Second Quarter 2018 (year-over-year comparable basis)

For ease of comparison, we have included constant currency metrics (a non-GAAP measure) both below (shown in parenthesis) and in the financial tables that follow:


▪	Total revenue grew 10.2 percent (9.2 percent) to $2.9 billion.


▪	Total gross profit grew 8.2 percent (7.5 percent), to $438.2 million.


▪	New vehicle revenues increased 7.4 percent (6.6 percent) on 6.3 percent higher unit sales. New vehicle gross profit improved 2.2 percent (1.8 percent), to $76.6 million.

▪

Retail used vehicle revenues increased 19.8 percent (18.4 percent) on 18.8 percent higher unit sales. Retail used vehicle gross profit increased 14.0 percent (12.7 percent), to $51.2 million. Total used vehicle gross profit was up 15.3 percent (14.1 percent), to $51.5 million. In the U.S., the Val-u-Line initiative the Company launched last quarter has continued to build momentum, with Same Store used retail unit sales increasing 11 percent, and Val-u-Line units growing to 10 percent of the mix.


▪	Parts and service gross profit increased 9.1 percent (8.3 percent) on revenue growth of 8.0 percent (7.4 percent). Same Store parts and service gross profit increased 3.2 percent (2.7 percent) on Same Store parts and service revenue growth of 2.4 percent (2.0 percent).


▪	Finance and Insurance (F&I) gross profit per retail unit (PRU) decreased 3.4 percent (decreased 3.9 percent), to $1,412 and total F&I gross profit increased $8.6 million, or 8.1 percent (7.5 percent).


▪	Selling, General and Administrative (SG&A) expenses as a percent of gross profit improved 340 basis points, to 70.3 percent. Adjusted Same Store SG&A as a percent of gross profit improved 110 basis points, to 72.3 percent, reflecting strong improvements in all three of our markets.


▪	Provision for income taxes declined 17.0 percent, to $18.7 million, or to approximately 24.9 percent of income before income taxes, primarily reflecting the impact of the U.S. Tax Reform Bill that reduced the U.S. corporate income tax rate.

Segment Results for Second Quarter 2018 (year-over-year comparable basis)


▪	United States:

The Company’s U.S. operations accounted for 73.7 percent of total revenues and 80.0 percent of total gross profit. Total U.S. revenues were $2.2 billion, an increase of 2.1 percent, driven by increases in used retail (up 10.4 percent), F&I revenue (up 3.1 percent), and parts and service (up 2.2 percent). F&I gross profit PRU decreased $33, or 2.0 percent per unit, to $1,655; and total gross profit grew 3.0 percent, to $350.7 million.

“We were pleased with our used car performance and cost control in the U.S. in the second quarter. Same Store used vehicle retail unit sales were up 11 percent and total used vehicle gross profit increased six percent. Total Same Store gross profit increased one percent, which when coupled with strong cost control, evidenced by adjusted SG&A leverage of 110 basis points, drove improved bottom-line results. Same Store adjusted operating income increased five percent and adjusted operating margin improved 20 basis points to 4.2 percent,” said Daryl Kenningham, Group 1’s president of U.S. operations.

New vehicle retail gross profit PRU was roughly flat with a slight increase of $4, to $1,855. Total used vehicle gross profit PRU increased $69, to $1,128, reflecting the impact of the used vehicle initiatives we launched last quarter, which drove a shift of over 2,000 units from low-margin wholesale to higher margin retail sales.

SG&A expenses as a percent of gross profit improved 480 basis points, to 66.8 percent and operating margin increased 60 basis points, to 4.6 percent. Adjusted SG&A expenses as a percent of gross profit improved 110 basis points, to 70.3 percent.


▪	United Kingdom:

The Company’s U.K. operations accounted for 22.7 percent of total revenues and 17.1 percent of total gross profit. Total U.K. revenues increased 52.6 percent (43.6 percent), to $666.9 million, driven by double-digit revenue growth across each business segment. Same Store U.K. revenues grew 13.6 percent (6.9 percent), to $493.1 million, and new vehicle units sold increased 7.2 percent, despite the industry growing only 2.4 percent. Total gross profit increased 46.9 percent (38.3 percent), to $74.8 million, with Same Store gross profit increasing 12.6 percent (6.1 percent), to $57.1 million. This growth was driven by strong improvements of 16.8 percent (10 percent) in Same Store parts and service gross profit, as well as double-digit growth in F&I and used retail gross.

SG&A expenses as a percent of gross profit improved 20 basis points, to 83.2 percent; and operating margin decreased 10 basis points, to 1.4 percent. Adjusted Same Store SG&A expenses as a percent of gross profit improved 140 basis points, to 81.1 percent; and Same Store operating margin increased 10 basis points, to 1.7 percent.


▪	Brazil:

The Company’s Brazilian operations were approximately breakeven during the second quarter and accounted for 3.6 percent of total revenues and 2.9 percent of total gross profit as a trucking strike in May negatively impacted results. The Company’s Same Store new vehicle revenue grew 1.7 percent on a constant currency basis, with units down 5.4 percent. On a Same Store constant currency basis, total revenues grew 5.0 percent, driven by revenue growth of the aforementioned 1.7 percent in new vehicles, 16.5 percent in total used vehicles, 2.7 percent in parts & service, and 5.1 percent in F&I.

SG&A expenses as a percent of gross profit increased 10 basis points, to 91.1 percent. Adjusted Same Store SG&A expenses as a percent of gross profit decreased 280 basis points, to 86.6 percent.

Share Repurchase Authorization

During the second quarter of 2018, the Company repurchased 610,752 shares at an average price per common share of $68.90, for a total of $42.1 million. In July 2018, the Company repurchased an additional 367,773 shares at an average price per common share of $67.98, for a total of $25.0 million. Year-to-date through July 25, 2018, the Company has repurchased 1,114,130 shares at an average price per common share of $68.46, for a total of $76.3 million. These repurchases represent approximately 5.5 percent of the Company’s share float at the beginning of the year. As of July 25, 2018, the Company has $73.4 million remaining on its Board authorized common stock share repurchase program.

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

Corporate Development

As previously announced, the Company acquired Toyota Alpha Trevo Automóveis Ltda in western São Paulo, Brazil in April 2018, which will operate as T-Drive Toyota Alphaville, and is expected to generate approximately $45 million in annualized revenues. This acquisition provides the opportunity to both increase scale in a growing market and further expand the Company’s Toyota presence with additional open points to be announced at a future date. Additionally, the Company is pleased to announce the relocation of Honda São Bernardo do Campo to a new facility. The facility is owned by the Company and will enable significant uplift in new, used and aftersales business.

In June 2018, the Company disposed of 3 franchises, which included a BMW franchise in Kentish Town in the U.K., as well as a Mercedes-Benz franchise and Sprinter franchise in Escondido, California. These three stores generated approximately $115 million in trailing-twelve-month revenues.

Year-to-date 2018, the Company has acquired a total of 12 franchises, which are expected to generate an estimated $405 million in annual revenues; and the Company has disposed of three aforementioned franchises.

Second Quarter 2018 Earnings Conference Call Details

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

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

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

Domestic: 1-888-317-6003

International: 1-412-317-6061

Conference ID: 4003183

A telephonic replay will be available following the call through August 2, 2018 by dialing:

Domestic: 1-877-344-7529

International: 1-412-317-0088

Replay ID: 10122294

About Group 1 Automotive, Inc.

Group 1 owns and operates 180 automotive dealerships, 236 franchises, and 48 collision centers in the United States, the United Kingdom and Brazil that offer 32 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service contracts; provides automotive maintenance and repair services; and sells vehicle parts.

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

FORWARD-LOOKING STATEMENTS

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements related to future, not past, events and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. In this context, the forward-looking statements often include statements regarding our goals, plans, projections and guidance regarding our financial position, results of operations, market position, pending and potential future acquisitions and business strategy, and often contain words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “should,” “foresee,” “may” or “will” and similar expressions. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Any such forward-looking statements are not assurances of future performance and involve risks and uncertainties that may cause actual results to differ materially from those set forth in the statements. These risks and uncertainties include, among other things, (a) general economic and business conditions, (b) the level of manufacturer incentives, (c) the future regulatory environment, (d) our ability to obtain an inventory of desirable new and used vehicles, (e) our relationship with our automobile manufacturers and the willingness of manufacturers to approve future acquisitions, (f) our cost of financing and the availability of credit for consumers, (g) our ability to complete acquisitions and dispositions and the risks associated therewith, (h) foreign exchange controls and currency fluctuations, and (i) our ability to retain key personnel. For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with the SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.

NON-GAAP FINANCIAL MEASURES

In addition to evaluating the financial condition and results of our operations in accordance with GAAP, from time to time our management evaluates and analyzes results and any impact on the Company of strategic decisions and actions relating to, among other things, cost reduction, growth, and profitability improvement initiatives, and other events outside of normal, or "core," business and operations, by considering alternative financial measures not prepared in accordance with GAAP. This includes evaluating measures such as adjusted selling, general and administrative expenses, adjusted net income and adjusted diluted earnings per share. These adjusted measures are not measures of financial performance under U.S. GAAP, but are instead considered non-GAAP financial performance measures. Non-GAAP measures do not have definitions under GAAP and may be defined differently by and not be comparable to similarly titled measures used by other companies. As a result, any non-GAAP financial measures considered and evaluated by management are reviewed in conjunction with a review of the most directly comparable measures calculated in accordance with GAAP. We caution investors not to place undue reliance on such non-GAAP measures, but also to consider them with the most directly comparable GAAP measures. In our evaluation of results from time to time, we exclude items that do not arise directly from core operations, such as non-cash asset impairment charges, gains and losses on dealership franchise or real estate transactions, and catastrophic weather events such as hail storms, hurricanes, and snow storms. Because these non-core charges and gains materially affect the Company's financial condition or results in the specific period in which they are recognized, management also evaluates, and makes resource allocation and performance evaluation decisions based on, the related non-GAAP measures excluding such items.

In addition to using such non-GAAP measures to evaluate results in a specific period, management believes that such measures may provide more complete and consistent comparisons of operational performance on a period-over-period historical basis and a better indication of expected future trends. Our management also uses these adjusted measures in conjunction with U.S. GAAP financial measures to assess our business, including communication with our Board of Directors, investors and industry analysts concerning financial performance. We disclose these non-GAAP measures, and the related reconciliations, because we believe investors use these metrics in evaluating longer-term period-over-period performance, and to allow investors to better understand and evaluate the information used by management to assess operating performance. The exclusion of certain expenses in the calculation of non-GAAP financial measures should not be construed as an inference that these costs are unusual or infrequent. We anticipate excluding these expenses in the future presentation of our non-GAAP financial measures.

In addition, we evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our underlying business and results of operations, consistent with how we evaluate our performance. We calculate constant currency percentages by converting our current period reported results for entities reporting in currencies other than United States dollars using comparative period exchange rates rather than the actual exchange rates in effect during the respective periods. The constant currency performance measures should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with U.S. GAAP.

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

Senior Vice President, Manufacturer Relations, Financial Services and Public Affairs

Group 1 Automotive, Inc.

713-647-5770 | pdelongchamps@group1auto.com

Clint Woods

Pierpont Communications, Inc.

713-627-2223 | cwoods@piercom.com



Group 1 Automotive, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)

	Three Months Ended June 30,
	2018			2017			% Increase/(Decrease)
REVENUES:
New vehicle retail sales	$	1,555,570		$	1,448,768		7.4
Used vehicle retail sales	821,853			685,949			19.8
Used vehicle wholesale sales	92,854			99,377			(6.6	)
Parts and service	358,129			331,631			8.0
Finance, insurance and other, net	115,056			106,470			8.1
Total revenues	2,943,462			2,672,195			10.2
COST OF SALES:
New vehicle retail sales	1,478,988			1,373,857			7.7
Used vehicle retail sales	770,639			641,036			20.2
Used vehicle wholesale sales	92,613			99,644			(7.1	)
Parts and service	163,059			152,766			6.7
Total cost of sales	2,505,299			2,267,303			10.5
GROSS PROFIT	438,163			404,892			8.2
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	308,092			298,568			3.2
DEPRECIATION AND AMORTIZATION EXPENSE	16,638			14,093			18.1
ASSET IMPAIRMENTS	4,268			—			100.0
OPERATING INCOME	109,165			92,231			18.4
OTHER EXPENSE:
Floorplan interest expense	(14,563		)	(13,226		)	10.1
Other interest expense, net	(19,414		)	(17,315		)	12.1
INCOME BEFORE INCOME TAXES	75,188			61,690			21.9
PROVISION FOR INCOME TAXES	(18,725		)	(22,557		)	(17.0	)
NET INCOME	$	56,463		$	39,133		44.3
Less: Earnings allocated to participating securities	$	1,916		$	1,389		37.9
Earnings available to diluted common shares	$	54,547		$	37,744		44.5
DILUTED EARNINGS PER SHARE	$	2.72		$	1.84		47.8
Weighted average dilutive common shares outstanding	20,046			20,522			(2.3	)
Weighted average participating securities	708			761			(7.0	)
Total weighted average shares outstanding	20,754			21,283			(2.5	)



	Six Months Ended June 30,
	2018			2017			% Increase/(Decrease)
REVENUES:
New vehicle retail sales	$	3,069,160		$	2,785,981		10.2
Used vehicle retail sales	1,602,423			1,346,876			19.0
Used vehicle wholesale sales	196,883			203,534			(3.3	)
Parts and service	707,644			651,329			8.6
Finance, insurance and other, net	227,378			203,304			11.8
Total revenues	5,803,488			5,191,024			11.8
COST OF SALES:
New vehicle retail sales	2,917,151			2,641,843			10.4
Used vehicle retail sales	1,507,714			1,256,958			19.9
Used vehicle wholesale sales	194,987			203,701			(4.3	)
Parts and service	325,710			300,108			8.5
Total cost of sales	4,945,562			4,402,610			12.3
GROSS PROFIT	857,926			788,414			8.8
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	632,439			588,347			7.5
DEPRECIATION AND AMORTIZATION EXPENSE	32,980			27,699			19.1
ASSET IMPAIRMENTS	4,268			—			100.0
OPERATING INCOME	188,239			172,368			9.2
OTHER EXPENSE:
Floorplan interest expense	(28,650		)	(25,168		)	13.8
Other interest expense, net	(38,234		)	(34,314		)	11.4
INCOME BEFORE INCOME TAXES	121,355			112,886			7.5
PROVISION FOR INCOME TAXES	(29,078		)	(39,814		)	(27.0	)
NET INCOME	$	92,277		$	73,072		26.3
Less: Earnings allocated to participating securities	$	3,123		$	2,645		18.1
Earnings available to diluted common shares	$	89,154		$	70,427		26.6
DILUTED EARNINGS PER SHARE	$	4.42		$	3.42		29.2
Weighted average dilutive common shares outstanding	20,176			20,609			(2.1	)
Weighted average participating securities	712			789			(9.8	)
Total weighted average shares outstanding	20,888			21,398			(2.4	)



Group 1 Automotive, Inc.
Consolidated Balance Sheets
(Unaudited)
(Dollars in thousands)

	June 30, 2018			December 31, 2017			% Increase/(Decrease)
ASSETS:
CURRENT ASSETS:
Cash and cash equivalents	$	41,575		$	28,787		44.4
Contracts in transit and vehicle receivables, net	249,706			306,433			(18.5	)
Accounts and notes receivable, net	178,339			188,611			(5.4	)
Inventories, net	1,721,249			1,763,293			(2.4	)
Prepaid expenses and other current assets	80,957			42,062			92.5
Total current assets	2,271,826			2,329,186			(2.5	)
PROPERTY AND EQUIPMENT, net	1,348,521			1,318,959			2.2
GOODWILL AND INTANGIBLE FRANCHISE RIGHTS	1,233,201			1,198,666			2.9
OTHER ASSETS	33,194			24,254			36.9
Total assets	$	4,886,742		$	4,871,065		0.3

LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES:
Floorplan notes payable - credit facility and other	$	1,147,892		$	1,240,695		(7.5	)
Offset account related to floorplan notes payable - credit facility	(119,562		)	(86,547		)	38.1
Floorplan notes payable - manufacturer affiliates	404,233			397,183			1.8
Offset account related to floorplan notes payable - manufacturer affiliates	(24,500		)	(22,500		)	8.9
Current maturities of long-term debt and short-term financing	76,412			77,609			(1.5	)
Current liabilities from interest rate risk management activities	682			1,996			(65.8	)
Accounts payable	442,577			412,981			7.2
Accrued expenses	189,027			177,070			6.8
Total current liabilities	2,116,761			2,198,487			(3.7	)
5.00% SENIOR NOTES (principal of $550,000 at June 30, 2018 and December 31, 2017, respectively)	542,888			542,063			0.2
5.25% SENIOR NOTES (principal of $300,000 at June 30, 2018 and December 31, 2017, respectively)	296,440			296,151			0.1
ACQUISITION LINE	39,636			26,988			46.9
REAL ESTATE RELATED AND OTHER LONG-TERM DEBT, net of current maturities	419,424			405,950			3.3
CAPITAL LEASE OBLIGATIONS RELATED TO REAL ESTATE, net of current maturities	59,610			47,032			26.7
DEFERRED INCOME TAXES	138,478			124,404			11.3
LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES	1,597			8,583			(81.4	)
OTHER LIABILITIES	99,296			97,125			2.2
STOCKHOLDERS' EQUITY:
Common stock	255			255			—
Additional paid-in capital	288,492			291,461			(1.0	)
Retained earnings	1,339,185			1,246,323			7.5
Accumulated other comprehensive loss	(126,358		)	(123,226		)	2.5
Treasury stock	(328,962		)	(290,531		)	13.2
Total stockholders' equity	1,172,612			1,124,282			4.3
Total liabilities and stockholders' equity	$	4,886,742		$	4,871,065		0.3



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

		Three Months Ended		Six Months Ended
		June 30,		June 30,
		2018 (%)	2017 (%)	2018 (%)	2017 (%)
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
Region	Geographic Market
United States	Texas	35.2	36.6	35.4	35.6
	California	6.4	7.9	6.5	7.9
	Oklahoma	5.9	6.5	5.9	6.5
	Massachusetts	4.7	4.9	4.7	4.7
	Georgia	4.4	4.8	4.3	4.7
	Florida	2.5	2.5	2.5	2.5
	Louisiana	1.9	1.9	1.8	2.0
	New Hampshire	1.8	2.3	1.8	2.0
	New Jersey	1.7	1.9	1.6	1.7
	South Carolina	1.6	1.5	1.6	1.4
	Kansas	1.3	1.8	1.3	1.7
	Mississippi	1.2	1.3	1.2	1.4
	Alabama	0.6	1.1	0.6	1.1
	Maryland	0.5	0.4	0.5	0.4
	New Mexico	0.2	—	0.1	—
		69.9	75.4	69.8	73.6

International	United Kingdom	25.1	19.3	25.2	21.4
	Brazil	5.0	5.3	5.0	5.0
		100.0	100.0	100.0	100.0

NEW VEHICLE UNIT SALES BRAND MIX:
Toyota/Lexus		23.9	25.4	24.0	24.4
Volkswagen/Audi/Porsche		13.6	12.3	13.6	12.4
BMW/MINI		12.2	13.1	12.4	13.7
Ford/Lincoln		11.0	11.3	11.2	12.1
Honda/Acura		8.9	9.6	9.2	9.3
Nissan		6.0	7.6	6.4	7.9
Chevrolet/GMC/Buick/Cadillac		5.7	5.9	5.8	6.3
Mercedes-Benz/smart/Sprinter		5.4	4.2	5.0	4.1
Chrysler/Dodge/Jeep/RAM		4.1	4.1	4.1	3.9
Hyundai/Kia		3.8	4.3	3.9	3.9
Jaguar/Land Rover		1.9	0.4	1.9	0.4
Other		3.5	1.8	2.5	1.6
		100.0	100.0	100.0	100.0



Group 1 Automotive, Inc.
Additional Information - U.S.
(Unaudited)
(Dollars in thousands, except per unit amounts)
(Dollars in thousands, except per unit amounts)
	Three Months Ended June 30,
	2018			2017			% Increase/(Decrease)
REVENUES:
New vehicle retail sales	$	1,146,882		$	1,143,771		0.3
Used vehicle retail sales	592,007			536,193			10.4
Used vehicle wholesale sales	42,781			66,476			(35.6	)
Total used	634,788			602,669			5.3
Parts and service	288,889			282,698			2.2
Finance, insurance and other, net	97,442			94,552			3.1
Total	$	2,168,001		$	2,123,690		2.1
GROSS MARGIN %:
New vehicle retail sales	4.9			5.0
Used vehicle retail sales	6.6			6.8
Used vehicle wholesale sales	3.6			0.4
Total used	6.4			6.1
Parts and service	54.2			53.8
Finance, insurance and other, net	100.0			100.0
Total	16.2			16.0
GROSS PROFIT:
New vehicle retail sales	$	56,358		$	57,000		(1.1	)
Used vehicle retail sales	38,809			36,704			5.7
Used vehicle wholesale sales	1,553			246			531.3
Total used	40,362			36,950			9.2
Parts and service	156,508			151,971			3.0
Finance, insurance and other, net	97,442			94,552			3.1
Total	$	350,670		$	340,473		3.0
UNITS SOLD:
Retail new vehicles sold	30,388			30,802			(1.3	)
Retail used vehicles sold	28,484			25,202			13.0
Wholesale used vehicles sold	7,292			9,701			(24.8	)
Total used	35,776			34,903			2.5
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	37,741		$	37,133		1.6
Used vehicle retail	$	20,784		$	21,276		(2.3	)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,855		$	1,851		0.2
Used vehicle retail sales	1,362			1,456			(6.5	)
Used vehicle wholesale sales	213			25			752.0
Total used	1,128			1,059			6.5
Finance, insurance and other, net (per retail unit)	$	1,655		$	1,688		(2.0	)
OTHER:
SG&A expenses	$	234,279		$	243,844		(3.9	)
Adjusted SG&A expenses⁽¹⁾	$	246,586		$	243,201		1.4
SG&A as % revenues	10.8			11.5
Adjusted SG&A as % revenues ⁽¹⁾	11.4			11.5
SG&A as % gross profit	66.8			71.6
Adjusted SG&A as % gross profit ⁽¹⁾	70.3			71.4
Operating margin %	4.6			4.0
Adjusted operating margin % ⁽¹⁾	4.2			4.0
Pretax margin %	3.2			2.6
Adjusted pretax margin % ⁽¹⁾	2.8			2.7
INTEREST EXPENSE:
Floorplan interest expense	$	(12,809	)	$	(12,062	)	6.2
Floorplan assistance	11,206			11,452			(2.1	)
Net floorplan expense	$	(1,603	)	$	(610	)	162.8
Other interest expense, net	$	(17,332	)	$	(16,572	)	4.6

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



	Six Months Ended June 30,
	2018			2017			% Increase/(Decrease)
REVENUES:
New vehicle retail sales	$	2,236,835		$	2,162,020		3.5
Used vehicle retail sales	1,155,837			1,058,140			9.2
Used vehicle wholesale sales	96,783			137,021			(29.4	)
Total used	1,252,620			1,195,161			4.8
Parts and service	573,403			553,857			3.5
Finance, insurance and other, net	193,629			180,371			7.4
Total	$	4,256,487		$	4,091,409		4.0
GROSS MARGIN %:
New vehicle retail sales	4.9			5.0
Used vehicle retail sales	6.3			7.1
Used vehicle wholesale sales	3.1			(0.1		)
Total used	6.0			6.2
Parts and service	53.7			53.8
Finance, insurance and other, net	100.0			100.0
Total	16.1			16.2
GROSS PROFIT:
New vehicle retail sales	$	109,493		$	108,209		1.2
Used vehicle retail sales	72,294			74,636			(3.1	)
Used vehicle wholesale sales	2,987			(116		)	2,675.0
Total used	75,281			74,520			1.0
Parts and service	307,952			297,969			3.4
Finance, insurance and other, net	193,629			180,371			7.4
Total	$	686,355		$	661,069		3.8
UNITS SOLD:
Retail new vehicles sold	59,061			58,300			1.3
Retail used vehicles sold	55,794			50,131			11.3
Wholesale used vehicles sold	16,675			19,682			(15.3	)
Total used	72,469			69,813			3.8
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	37,873		$	37,084		2.1
Used vehicle retail	$	20,716		$	21,107		(1.9	)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,854		$	1,856		(0.1	)
Used vehicle retail sales	1,296			1,489			(13.0	)
Used vehicle wholesale sales	179			(6		)	3,083.3
Total used	1,039			1,067			(2.6	)
Finance, insurance and other, net (per retail unit)	$	1,686		$	1,663		1.4
OTHER:
SG&A expenses	$	487,220		$	480,117		1.5
Adjusted SG&A expenses ⁽¹⁾	$	499,527		$	481,307		3.8
SG&A as % revenues	11.4			11.7
Adjusted SG&A as % revenues⁽¹⁾	11.7			11.8
SG&A as % gross profit	71.0			72.6
Adjusted SG&A as % gross profit ⁽¹⁾	72.8			72.8
Operating margin %	4.0			3.8
Adjusted operating margin % ⁽¹⁾	3.8			3.8
Pretax margin %	2.6			2.5
Adjusted pretax margin % ⁽¹⁾	2.4			2.5
INTEREST EXPENSE:
Floorplan interest expense	$	(25,146	)	$	(22,940	)	9.6
Floorplan assistance	21,956			21,736			1.0
Net floorplan expense	$	(3,190	)	$	(1,204	)	165.0
Other interest expense, net	$	(34,348	)	$	(32,844	)	4.6



Group 1 Automotive, Inc.
Additional Information - U.K.
(Unaudited)
(Dollars in thousands, except per unit amounts)
(Dollars in thousands, except per unit amounts)
	Three Months Ended June 30,
	2018			2017			% Increase/(Decrease)		Constant Currency⁽¹⁾% Increase/(Decrease)
REVENUES:
New vehicle retail sales	$	338,635		$	231,415		46.3		37.7
Used vehicle retail sales	208,108			128,406			62.1		52.4
Used vehicle wholesale sales	46,527			30,448			52.8		43.7
Total used	254,635			158,854			60.3		50.7
Parts and service	57,996			37,050			56.5		47.3
Finance, insurance and other, net	15,617			9,784			59.6		50.7
Total	$	666,883		$	437,103		52.6		43.6
GROSS MARGIN %:
New vehicle retail sales	4.7			5.9
Used vehicle retail sales	5.3			5.2
Used vehicle wholesale sales	(3.0		)	(2.3		)
Total used	3.8			3.8
Parts and service	57.9			57.9
Finance, insurance and other, net	100.0			100.0
Total	11.2			11.7
GROSS PROFIT:
New vehicle retail sales	$	15,907		$	13,744		15.7		9.5
Used vehicle retail sales	11,103			6,679			66.2		55.2
Used vehicle wholesale sales	(1,378		)	(715		)	(92.7	)	(82.7	)
Total used	9,725			5,964			63.1		51.9
Parts and service	33,555			21,440			56.5		47.4
Finance, insurance and other, net	15,617			9,784			59.6		50.7
Total	$	74,804		$	50,932		46.9		38.3
UNITS SOLD:
Retail new vehicles sold	10,914			7,894			38.3
Retail used vehicles sold	8,501			5,813			46.2
Wholesale used vehicles sold	5,955			4,137			43.9
Total used	14,456			9,950			45.3
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	31,028		$	29,315		5.8		(0.4	)
Used vehicle retail	$	24,480		$	22,089		10.8		4.2
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,457		$	1,741		(16.3	)	(20.8	)
Used vehicle retail sales	1,306			1,149			13.7		6.1
Used vehicle wholesale sales	(231		)	(173		)	(33.5	)	(26.9	)
Total used	673			599			12.4		4.5
Finance, insurance and other, net (per retail unit)	$	804		$	714		12.6		6.4
OTHER:
SG&A expenses	$	62,258		$	42,456		46.6		37.8
Adjusted SG&A expenses ⁽¹⁾	$	62,258		$	42,168		47.6		38.7
SG&A as % revenues	9.3			9.7
Adjusted SG&A as % revenues ⁽¹⁾	9.3			9.6
SG&A as % gross profit	83.2			83.4
Adjusted SG&A as % gross profit ⁽¹⁾	83.2			82.8
Operating margin %	1.4			1.5
Adjusted operating margin % ⁽¹⁾	1.4			1.6
Pretax margin %	0.9			1.1
Adjusted pretax margin % ⁽¹⁾	0.9			1.2
INTEREST EXPENSE:
Floorplan interest expense	$	(1,617	)	$	(1,053	)	53.6		44.3
Floorplan assistance	240			220			9.1		2.8
Net floorplan expense	$	(1,377	)	$	(833	)	65.3		55.2
Other interest expense, net	$	(1,790	)	$	(684	)	161.7		144.4



	Six Months Ended June 30,
	2018			2017			% Increase/(Decrease)		Constant Currency ⁽¹⁾ % Increase/(Decrease)
REVENUES:
New vehicle retail sales	$	693,039		$	490,055		41.4		29.1
Used vehicle retail sales	400,657			243,775			64.4		50.6
Used vehicle wholesale sales	92,712			60,957			52.1		39.1
Total used	493,369			304,732			61.9		48.3
Parts and service	111,137			73,831			50.5		37.8
Finance, insurance and other, net	29,880			18,812			58.8		45.6
Total	$	1,327,425		$	887,430		49.6		36.7
GROSS MARGIN %:
New vehicle retail sales	5.0			5.7
Used vehicle retail sales	4.9			5.0
Used vehicle wholesale sales	(1.4		)	(0.8		)
Total used	3.7			3.8
Parts and service	57.2			57.8
Finance, insurance and other, net	100.0			100.0
Total	11.0			11.4
GROSS PROFIT:
New vehicle retail sales	$	34,418		$	28,145		22.3		11.8
Used vehicle retail sales	19,663			12,108			62.4		48.4
Used vehicle wholesale sales	(1,308		)	(504		)	(159.5	)	(150.8	)
Total used	18,355			11,604			58.2		44.0
Parts and service	63,602			42,665			49.1		36.6
Finance, insurance and other, net	29,880			18,812			58.8		45.6
Total	$	146,255		$	101,226		44.5		32.2
UNITS SOLD:
Retail new vehicles sold	21,364			16,912			26.3
Retail used vehicles sold	16,336			11,424			43.0
Wholesale used vehicles sold	11,542			8,306			39.0
Total used	27,878			19,730			41.3
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	32,440		$	28,977		12.0		2.2
Used vehicle retail	$	24,526		$	21,339		14.9		5.3
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,611		$	1,664		(3.2	)	(11.5	)
Used vehicle retail sales	1,204			1,060			13.6		3.8
Used vehicle wholesale sales	(113		)	(61		)	(85.2	)	(80.5	)
Total used	658			588			11.9		1.9
Finance, insurance and other, net (per retail unit)	$	793		$	664		19.4		9.5
OTHER:
SG&A expenses	$	121,854		$	84,080		44.9		32.6
Adjusted SG&A expenses ⁽¹⁾	$	121,854		$	83,792		45.4		33.0
SG&A as % revenues	9.2			9.5
Adjusted SG&A as % revenues⁽¹⁾	9.2			9.4
SG&A as % gross profit	83.3			83.1
Adjusted SG&A as % gross profit ⁽¹⁾	83.3			82.8
Operating margin %	1.4			1.5
Adjusted operating margin % ⁽¹⁾	1.4			1.6
Pretax margin %	0.9			1.2
Adjusted pretax margin % ⁽¹⁾	0.9			1.2
INTEREST EXPENSE:
Floorplan interest expense	$	(3,131	)	$	(2,087	)	50.0		37.3
Floorplan assistance	526			449			17.1		6.8
Net floorplan expense	$	(2,605	)	$	(1,638	)	59.0		45.6
Other interest expense, net	$	(3,322	)	$	(1,265	)	162.6		140.3



Group 1 Automotive, Inc.
Additional Information - Brazil
(Unaudited)
(Dollars in thousands, except per unit amounts)
(Dollars in thousands, except per unit amounts)
	Three Months Ended June 30,
	2018			2017			% Increase/(Decrease)		Constant Currency ⁽¹⁾ % Increase/(Decrease)
REVENUES:
New vehicle retail sales	$	70,053		$	73,582		(4.8	)	6.2
Used vehicle retail sales	21,738			21,350			1.8		13.6
Used vehicle wholesale sales	3,546			2,453			44.6		63.5
Total used	25,284			23,803			6.2		18.8
Parts and service	11,244			11,883			(5.4	)	5.8
Finance, insurance and other, net	1,997			2,134			(6.4	)	4.6
Total	$	108,578		$	111,402		(2.5	)	8.8
GROSS MARGIN %:
New vehicle retail sales	6.2			5.7
Used vehicle retail sales	6.0			7.2
Used vehicle wholesale sales	1.9			8.2
Total used	5.4			7.3
Parts and service	44.5			45.9
Finance, insurance and other, net	100.0			100.0
Total	11.7			12.1
GROSS PROFIT:
New vehicle retail sales	$	4,317		$	4,167		3.6		15.6
Used vehicle retail sales	1,302			1,530			(14.9	)	(4.9	)
Used vehicle wholesale sales	66			202			(67.3	)	(66.7	)
Total used	1,368			1,732			(21.0	)	(12.2	)
Parts and service	5,007			5,454			(8.2	)	2.6
Finance, insurance and other, net	1,997			2,134			(6.4	)	4.6
Total	$	12,689		$	13,487		(5.9	)	5.0
UNITS SOLD:
Retail new vehicles sold	2,169			2,180			(0.5	)
Retail used vehicles sold	1,023			988			3.5
Wholesale used vehicles sold	322			237			35.9
Total used	1,345			1,225			9.8
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	32,297		$	33,753		(4.3	)	6.8
Used vehicle retail	$	21,249		$	21,609		(1.7	)	9.7
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,990		$	1,911		4.1		16.1
Used vehicle retail sales	1,273			1,549			(17.8	)	(8.2	)
Used vehicle wholesale sales	205			852			(75.9	)	(75.5	)
Total used	1,017			1,414			(28.1	)	(20.0	)
Finance, insurance and other, net (per retail unit)	$	626		$	674		(7.1	)	3.8
OTHER:
SG&A expenses	$	11,555		$	12,268		(5.8	)	5.3
Adjusted SG&A expenses ⁽¹⁾	$	11,005		$	12,268		(10.3	)	0.1
SG&A as % revenues	10.6			11.0
Adjusted SG&A as % revenues⁽¹⁾	10.1			11.0
SG&A as % gross profit	91.1			91.0
Adjusted SG&A as % gross profit ⁽¹⁾	86.7			91.0
Operating margin %	0.6			0.8
Adjusted operating margin % ⁽¹⁾	1.1			0.8
Pretax margin %	0.2			0.6
Adjusted pretax margin % ⁽¹⁾	0.7			0.6
INTEREST EXPENSE:
Floorplan interest expense	$	(137	)	$	(111	)	23.4		37.1
Floorplan assistance	—			—			—		—
Net floorplan expense	$	(137	)	$	(111	)	23.4		37.1
Other interest expense, net	$	(292	)	$	(59	)	394.9		442.1



	Six Months Ended June 30,
	2018			2017			% Increase/(Decrease)		Constant Currency ⁽¹⁾ % Increase/(Decrease)
REVENUES:
New vehicle retail sales	$	139,286		$	133,906		4.0		11.8
Used vehicle retail sales	45,929			44,961			2.2		9.6
Used vehicle wholesale sales	7,388			5,556			33.0		44.1
Total used	53,317			50,517			5.5		13.4
Parts and service	23,104			23,641			(2.3	)	5.0
Finance, insurance and other, net	3,869			4,121			(6.1	)	1.3
Total	$	219,576		$	212,185		3.5		11.2
GROSS MARGIN %:
New vehicle retail sales	5.8			5.8
Used vehicle retail sales	6.0			7.1
Used vehicle wholesale sales	2.9			8.2
Total used	5.6			7.2
Parts and service	44.9			44.8
Finance, insurance and other, net	100.0			100.0
Total	11.5			12.3
GROSS PROFIT:
New vehicle retail sales	$	8,098		$	7,784		4.0		12.2
Used vehicle retail sales	2,752			3,174			(13.3	)	(7.0	)
Used vehicle wholesale sales	217			453			(52.1	)	(50.7	)
Total used	2,969			3,627			(18.1	)	(12.4	)
Parts and service	10,380			10,587			(2.0	)	5.2
Finance, insurance and other, net	3,869			4,121			(6.1	)	1.3
Total	$	25,316		$	26,119		(3.1	)	4.2
UNITS SOLD:
Retail new vehicles sold	4,236			3,954			7.1
Retail used vehicles sold	2,094			2,014			4.0
Wholesale used vehicles sold	679			616			10.2
Total used	2,773			2,630			5.4
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	32,881		$	33,866		(2.9	)	4.4
Used vehicle retail	$	21,934		$	22,324		(1.7	)	5.4
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,912		$	1,969		(2.9	)	4.7
Used vehicle retail sales	1,314			1,576			(16.6	)	(10.5	)
Used vehicle wholesale sales	320			735			(56.5	)	(55.3	)
Total used	1,071			1,379			(22.3	)	(16.9	)
Finance, insurance and other, net (per retail unit)	$	611		$	691		(11.6	)	(4.5	)
OTHER:
SG&A expenses	$	23,365		$	24,150		(3.3	)	4.0
Adjusted SG&A expenses ⁽¹⁾	$	22,815		$	24,150		(5.5	)	1.3
SG&A as % revenues	10.6			11.4
Adjusted SG&A as % revenues⁽¹⁾	10.4			11.4
SG&A as % gross profit	92.3			92.5
Adjusted SG&A as % gross profit ⁽¹⁾	90.1			92.5
Operating margin %	0.5			0.6
Adjusted operating margin % ⁽¹⁾	0.7			0.6
Pretax margin %	0.1			0.4
Adjusted pretax margin % ⁽¹⁾	0.3			0.4
INTEREST EXPENSE:
Floorplan interest expense	$	(373	)	$	(141	)	164.5		178.2
Floorplan assistance	—			—			—		—
Net floorplan expense	$	(373	)	$	(141	)	164.5		178.2
Other interest expense, net	$	(564	)	$	(205	)	175.1		193.7

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



Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
(Dollars in thousands, except per unit amounts)
(Dollars in thousands, except per unit amounts)
	Three Months Ended June 30,
	2018			2017			% Increase/(Decrease)		Constant Currency ⁽¹⁾ % Increase/(Decrease)
REVENUES:
New vehicle retail sales	$	1,555,570		$	1,448,768		7.4		6.6
Used vehicle retail sales	821,853			685,949			19.8		18.4
Used vehicle wholesale sales	92,854			99,377			(6.6	)	(8.9	)
Total used	914,707			785,326			16.5		14.9
Parts and service	358,129			331,631			8.0		7.4
Finance, insurance and other, net	115,056			106,470			8.1		7.5
Total	$	2,943,462		$	2,672,195		10.2		9.2
GROSS MARGIN %:
New vehicle retail sales	4.9			5.2
Used vehicle retail sales	6.2			6.5
Used vehicle wholesale sales	0.3			(0.3		)
Total used	5.6			5.7
Parts and service	54.5			53.9
Finance, insurance and other, net	100.0			100.0
Total	14.9			15.2
GROSS PROFIT:
New vehicle retail sales	$	76,582		$	74,911		2.2		1.8
Used vehicle retail sales	51,214			44,913			14.0		12.7
Used vehicle wholesale sales	241			(267		)	190.3		217.3
Total used	51,455			44,646			15.3		14.1
Parts and service	195,070			178,865			9.1		8.3
Finance, insurance and other, net	115,056			106,470			8.1		7.5
Total	$	438,163		$	404,892		8.2		7.5
UNITS SOLD:
Retail new vehicles sold	43,471			40,876			6.3
Retail used vehicles sold	38,008			32,003			18.8
Wholesale used vehicles sold	13,569			14,075			(3.6	)
Total used	51,577			46,078			11.9
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	35,784		$	35,443		1.0		0.2
Used vehicle retail	$	21,623		$	21,434		0.9		(0.3	)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,762		$	1,833		(3.9	)	(4.3	)
Used vehicle retail sales	1,347			1,403			(4.0	)	(5.1	)
Used vehicle wholesale sales	18			(19		)	194.7		221.7
Total used	998			969			3.0		1.9
Finance, insurance and other, net (per retail unit)	$	1,412		$	1,461		(3.4	)	(3.9	)
OTHER:
SG&A expenses	$	308,092		$	298,568		3.2		2.4
Adjusted SG&A expenses ⁽¹⁾	$	319,849		$	297,637		7.5		6.6
SG&A as % revenues	10.5			11.2
Adjusted SG&A as % revenues⁽¹⁾	10.9			11.1
SG&A as % gross profit	70.3			73.7
Adjusted SG&A as % gross profit ⁽¹⁾	73.0			73.5
Operating margin %	3.7			3.5
Adjusted operating margin % ⁽¹⁾	3.5			3.5
Pretax margin %	2.6			2.3
Adjusted pretax margin % ⁽¹⁾	2.3			2.3
INTEREST EXPENSE:
Floorplan interest expense	$	(14,563	)	$	(13,226	)	10.1		9.5
Floorplan assistance	11,447			11,672			(1.9	)	(2.1	)
Net floorplan expense	$	(3,116	)	$	(1,554	)	100.5		96.2
Other interest expense, net	$	(19,414	)	$	(17,315	)	12.1		11.6



	Six Months Ended June 30,
	2018			2017			% Increase/(Decrease)		Constant Currency ⁽¹⁾ % Increase/(Decrease)
REVENUES:
New vehicle retail sales	$	3,069,160		$	2,785,981		10.2		8.4
Used vehicle retail sales	1,602,423			1,346,876			19.0		16.7
Used vehicle wholesale sales	196,883			203,534			(3.3	)	(6.8	)
Total used	1,799,306			1,550,410			16.1		13.6
Parts and service	707,644			651,329			8.6		7.5
Finance, insurance and other, net	227,378			203,304			11.8		10.8
Total	$	5,803,488		$	5,191,024		11.8		9.9
GROSS MARGIN %:
New vehicle retail sales	5.0			5.2
Used vehicle retail sales	5.9			6.7
Used vehicle wholesale sales	1.0			(0.1		)
Total used	5.4			5.8
Parts and service	54.0			53.9
Finance, insurance and other, net	100.0			100.0
Total	14.8			15.2
GROSS PROFIT:
New vehicle retail sales	$	152,009		$	144,138		5.5		3.9
Used vehicle retail sales	94,709			89,918			5.3		3.7
Used vehicle wholesale sales	1,896			(167		)	1,235.3		1,266.5
Total used	96,605			89,751			7.6		6.0
Parts and service	381,934			351,221			8.7		7.4
Finance, insurance and other, net	227,378			203,304			11.8		10.8
Total	$	857,926		$	788,414		8.8		7.5
UNITS SOLD:
Retail new vehicles sold	84,661			79,166			6.9
Retail used vehicles sold	74,224			63,569			16.8
Wholesale used vehicles sold	28,896			28,604			1.0
Total used	103,120			92,173			11.9
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	36,252		$	35,192		3.0		1.3
Used vehicle retail	$	21,589		$	21,188		1.9		—
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,796		$	1,821		(1.4	)	(2.9	)
Used vehicle retail sales	1,276			1,414			(9.8	)	(11.2	)
Used vehicle wholesale sales	66			(6		)	1,200.0		1,254.7
Total used	937			974			(3.8	)	(5.2	)
Finance, insurance and other, net (per retail unit)	$	1,431		$	1,424		0.5		(0.5	)
OTHER:
SG&A expenses	$	632,439		$	588,347		7.5		6.0
Adjusted SG&A expenses ⁽¹⁾	$	644,196		$	589,249		9.3		7.8
SG&A as % revenues	10.9			11.3
Adjusted SG&A as % revenues⁽¹⁾	11.1			11.4
SG&A as % gross profit	73.7			74.6
Adjusted SG&A as % gross profit ⁽¹⁾	75.1			74.7
Operating margin %	3.2			3.3
Adjusted operating margin % ⁽¹⁾	3.1			3.3
Pretax margin %	2.1			2.2
Adjusted pretax margin % ⁽¹⁾	2.0			2.2
INTEREST EXPENSE:
Floorplan interest expense	$	(28,650	)	$	(25,168	)	13.8		12.9
Floorplan assistance	22,482			22,185			1.3		1.1
Net floorplan expense	$	(6,168	)	$	(2,983	)	106.8		100.0
Other interest expense, net	$	(38,234	)	$	(34,314	)	11.4		10.7



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

	Three Months Ended June 30,
	2018		2017		% Increase/(Decrease)
REVENUES:
New vehicle retail sales	$	1,121,138	$	1,139,798	(1.6	)
Used vehicle retail sales	579,816		534,934		8.4
Used vehicle wholesale sales	41,158		66,187		(37.8	)
Total used	620,974		601,121		3.3
Parts and service	284,494		281,555		1.0
Finance, insurance and other, net	95,298		93,933		1.5
Total	$	2,121,904	$	2,116,407	0.3
GROSS MARGIN %:
New vehicle retail sales	4.9		5.0
Used vehicle retail sales	6.5		6.9
Used vehicle wholesale sales	3.8		0.4
Total used	6.3		6.1
Parts and service	54.2		53.8
Finance, insurance and other, net	100.0		100.0
Total	16.2		16.0
GROSS PROFIT:
New vehicle retail sales	$	54,648	$	56,783	(3.8	)
Used vehicle retail sales	37,716		36,649		2.9
Used vehicle wholesale sales	1,561		254		514.6
Total used	39,277		36,903		6.4
Parts and service	154,088		151,348		1.8
Finance, insurance and other, net	95,298		93,933		1.5
Total	$	343,311	$	338,967	1.3
UNITS SOLD:
Retail new vehicles sold	29,830		30,730		(2.9	)
Retail used vehicles sold	27,971		25,169		11.1
Wholesale used vehicles sold	7,133		9,681		(26.3	)
Total used	35,104		34,850		0.7
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	37,584	$	37,091	1.3
Used vehicle retail	$	20,729	$	21,254	(2.5	)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,832	$	1,848	(0.9	)
Used vehicle retail sales	1,348		1,456		(7.4	)
Used vehicle wholesale sales	219		26		742.3
Total used	1,119		1,059		5.7
Finance, insurance and other, net (per retail unit)	$	1,649	$	1,680	(1.8	)
OTHER:
SG&A expenses	$	249,033	$	242,559	2.7
Adjusted SG&A expenses ⁽²⁾	$	241,221	$	241,916	(0.3	)
SG&A as % revenues	11.7		11.5
Adjusted SG&A as % revenues ⁽²⁾	11.4		11.4
SG&A as % gross profit	72.5		71.6
Adjusted SG&A as % gross profit ⁽²⁾	70.3		71.4
Operating margin %	3.7		4.0
Adjusted operating margin % ⁽²⁾	4.2		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.



	Six Months Ended June 30,
	2018		2017			% Increase/(Decrease)
REVENUES:
New vehicle retail sales	$	2,189,357	$	2,158,047		1.5
Used vehicle retail sales	1,133,549		1,056,879			7.3
Used vehicle wholesale sales	93,938		136,732			(31.3	)
Total used	1,227,487		1,193,611			2.8
Parts and service	564,897		552,714			2.2
Finance, insurance and other, net	189,450		179,323			5.6
Total	$	4,171,191	$	4,083,695		2.1
GROSS MARGIN %:
New vehicle retail sales	4.9		5.0
Used vehicle retail sales	6.2		7.1
Used vehicle wholesale sales	3.2		(0.1		)
Total used	6.0		6.2
Parts and service	53.6		53.8
Finance, insurance and other, net	100.0		100.0
Total	16.1		16.1
GROSS PROFIT:
New vehicle retail sales	$	106,718	$	107,991		(1.2	)
Used vehicle retail sales	70,744		74,579			(5.1	)
Used vehicle wholesale sales	2,986		(90		)	3,417.8
Total used	73,730		74,489			(1.0	)
Parts and service	302,998		297,346			1.9
Finance, insurance and other, net	189,450		179,323			5.6
Total	$	672,896	$	659,149		2.1
UNITS SOLD:
Retail new vehicles sold	57,980		58,228			(0.4	)
Retail used vehicles sold	54,829		50,098			9.4
Wholesale used vehicles sold	16,356		19,662			(16.8	)
Total used	71,185		69,760			2.0
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	37,761	$	37,062		1.9
Used vehicle retail	$	20,674	$	21,096		(2.0	)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,841	$	1,855		(0.8	)
Used vehicle retail sales	1,290		1,489			(13.4	)
Used vehicle wholesale sales	183		(5		)	3,760.0
Total used	1,036		1,068			(3.0	)
Finance, insurance and other, net (per retail unit)	$	1,679	$	1,655		1.5
OTHER:
SG&A expenses	$	496,645	$	478,610		3.8
Adjusted SG&A expenses ⁽²⁾	$	488,833	$	479,800		1.9
SG&A as % revenues	11.9		11.7
Adjusted SG&A as % revenues ⁽²⁾	11.7		11.7
SG&A as % gross profit	73.8		72.6
Adjusted SG&A as % gross profit ⁽²⁾	72.6		72.8
Operating margin %	3.5		3.9
Adjusted operating margin % ⁽²⁾	3.8		3.8



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

	Three Months Ended June 30,
	2018			2017			% Increase/(Decrease)		Constant Currency ⁽²⁾ % Increase/(Decrease)
REVENUES:
New vehicle retail sales	$	254,118		$	229,878		10.5		4.0
Used vehicle retail sales	149,344			127,475			17.2		10.2
Used vehicle wholesale sales	34,939			30,247			15.5		8.7
Total used	184,283			157,722			16.8		9.9
Parts and service	42,786			36,808			16.2		9.4
Finance, insurance and other, net	11,895			9,734			22.2		15.3
Total	$	493,082		$	434,142		13.6		6.9
GROSS MARGIN %:
New vehicle retail sales	5.2			6.0
Used vehicle retail sales	5.3			5.2
Used vehicle wholesale sales	(2.7		)	(2.3		)
Total used	3.8			3.8
Parts and service	58.2			57.9
Finance, insurance and other, net	100.0			100.0
Total	11.6			11.7
GROSS PROFIT:
New vehicle retail sales	$	13,251		$	13,702		(3.3	)	(8.5	)
Used vehicle retail sales	7,974			6,636			20.2		12.3
Used vehicle wholesale sales	(928		)	(696		)	(33.3	)	(25.9	)
Total used	7,046			5,940			18.6		10.7
Parts and service	24,904			21,316			16.8		10.0
Finance, insurance and other, net	11,895			9,734			22.2		15.3
Total	$	57,096		$	50,692		12.6		6.1
UNITS SOLD:
Retail new vehicles sold	8,374			7,812			7.2
Retail used vehicles sold	5,998			5,758			4.2
Wholesale used vehicles sold	4,487			4,104			9.3
Total used	10,485			9,862			6.3
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	30,346		$	29,426		3.1		(2.9	)
Used vehicle retail	$	24,899		$	22,139		12.5		5.8
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,582		$	1,754		(9.8	)	(14.7	)
Used vehicle retail sales	1,329			1,152			15.4		7.8
Used vehicle wholesale sales	(207		)	(170		)	(21.8	)	(15.2	)
Total used	672			602			11.6		4.1
Finance, insurance and other, net (per retail unit)	$	828		$	717		15.5		8.9
OTHER:
SG&A expenses	$	46,319		$	42,087		10.1		3.4
Adjusted SG&A expenses ⁽²⁾	$	46,319		$	41,799		10.8		4.1
SG&A as % revenues	9.4			9.7
Adjusted SG&A as % revenues ⁽²⁾	9.4			9.6
SG&A as % gross profit	81.1			83.0
Adjusted SG&A as % gross profit ⁽²⁾	81.1			82.5
Operating margin %	1.7			1.6
Adjusted operating margin % ⁽²⁾	1.7			1.6



	Six Months Ended June 30,
	2018			2017			% Increase/(Decrease)		Constant Currency ⁽²⁾ % Increase/(Decrease)
REVENUES:
New vehicle retail sales	$	524,178		$	486,582		7.7		(1.7	)
Used vehicle retail sales	295,584			242,281			22.0		11.7
Used vehicle wholesale sales	71,012			60,662			17.1		7.1
Total used	366,596			302,943			21.0		10.8
Parts and service	84,011			73,254			14.7		5.0
Finance, insurance and other, net	22,530			18,707			20.4		10.4
Total	$	997,315		$	881,486		13.1		3.4
GROSS MARGIN %:
New vehicle retail sales	5.3			5.8
Used vehicle retail sales	5.0			5.0
Used vehicle wholesale sales	(1.4		)	(0.8		)
Total used	3.7			3.8
Parts and service	57.6			57.9
Finance, insurance and other, net	100.0			100.0
Total	11.3			11.4
GROSS PROFIT:
New vehicle retail sales	$	27,835		$	27,999		(0.6	)	(9.1	)
Used vehicle retail sales	14,645			12,019			21.8		11.4
Used vehicle wholesale sales	(978		)	(484		)	(102.1	)	(94.1	)
Total used	13,667			11,535			18.5		7.9
Parts and service	48,409			42,389			14.2		4.6
Finance, insurance and other, net	22,530			18,707			20.4		10.4
Total	$	112,441		$	100,630		11.7		2.3
UNITS SOLD:
Retail new vehicles sold	16,386			16,716			(2.0	)
Retail used vehicles sold	11,862			11,336			4.6
Wholesale used vehicles sold	8,820			8,246			7.0
Total used	20,682			19,582			5.6
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	31,989		$	29,109		9.9		0.3
Used vehicle retail	$	24,919		$	21,373		16.6		6.8
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,699		$	1,675		1.4		(7.2	)
Used vehicle retail sales	1,235			1,060			16.5		6.4
Used vehicle wholesale sales	(111		)	(59		)	(88.1	)	(81.5	)
Total used	661			589			12.2		2.1
Finance, insurance and other, net (per retail unit)	$	798		$	667		19.6		9.7
OTHER:
SG&A expenses	$	93,134		$	83,017		12.2		2.6
Adjusted SG&A expenses ⁽²⁾	$	93,134		$	82,729		12.6		3.0
SG&A as % revenues	9.3			9.4
Adjusted SG&A as % revenues ⁽²⁾	9.3			9.4
SG&A as % gross profit	82.8			82.5
Adjusted SG&A as % gross profit ⁽²⁾	82.8			82.2
Operating margin %	1.5			1.6
Adjusted operating margin % ⁽²⁾	1.5			1.6

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



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

	Three Months Ended June 30,
	2018		2017		% Increase/(Decrease)		Constant Currency ⁽²⁾ % Increase/(Decrease)
REVENUES:
New vehicle retail sales	$	67,152	$	73,584	(8.7	)	1.7
Used vehicle retail sales	21,270		21,350		(0.4	)	11.1
Used vehicle wholesale sales	3,547		2,453		44.6		63.5
Total used	24,817		23,803		4.3		16.5
Parts and service	10,932		11,887		(8.0	)	2.7
Finance, insurance and other, net	1,966		2,090		(5.9	)	5.1
Total	$	104,867	$	111,364	(5.8	)	5.0
GROSS MARGIN %:
New vehicle retail sales	6.2		5.7
Used vehicle retail sales	6.0		7.2
Used vehicle wholesale sales	1.9		8.2
Total used	5.4		7.3
Parts and service	44.2		45.9
Finance, insurance and other, net	100.0		100.0
Total	11.7		12.1
GROSS PROFIT:
New vehicle retail sales	$	4,166	$	4,169	(0.1	)	11.4
Used vehicle retail sales	1,278		1,537		(16.9	)	(7.1	)
Used vehicle wholesale sales	66		202		(67.3	)	(66.7	)
Total used	1,344		1,739		(22.7	)	(14.1	)
Parts and service	4,831		5,457		(11.5	)	(1.2	)
Finance, insurance and other, net	1,966		2,090		(5.9	)	5.1
Total	$	12,307	$	13,455	(8.5	)	2.0
UNITS SOLD:
Retail new vehicles sold	2,063		2,180		(5.4	)
Retail used vehicles sold	996		988		0.8
Wholesale used vehicles sold	314		237		32.5
Total used	1,310		1,225		6.9
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	32,551	$	33,754	(3.6	)	7.5
Used vehicle retail	$	21,355	$	21,609	(1.2	)	10.2
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	2,019	$	1,912	5.6		17.7
Used vehicle retail sales	1,283		1,556		(17.5	)	(7.9	)
Used vehicle wholesale sales	210		852		(75.4	)	(74.9	)
Total used	1,026		1,420		(27.7	)	(19.6	)
Finance, insurance and other, net (per retail unit)	$	643	$	660	(2.6	)	8.9
OTHER:
SG&A expenses	$	11,080	$	12,031	(7.9	)	3.1
Adjusted SG&A expenses ⁽²⁾	$	10,653	$	12,031	(11.5	)	(1.1	)
SG&A as % revenues	10.6		10.8
Adjusted SG&A as % revenues⁽²⁾	10.2		10.8
SG&A as % gross profit	90.0		89.4
Adjusted SG&A as % gross profit ⁽²⁾	86.6		89.4
Operating margin %	0.7		1.0
Adjusted operating margin % ⁽²⁾	1.1		1.0



	Six Months Ended June 30,
	2018		2017		% Increase/(Decrease)		Constant Currency⁽²⁾ % Increase/(Decrease)
REVENUES:
New vehicle retail sales	$	136,387	$	131,670	3.6		11.2
Used vehicle retail sales	45,461		43,151		5.4		13.0
Used vehicle wholesale sales	7,388		5,539		33.4		44.5
Total used	52,849		48,690		8.5		16.6
Parts and service	22,791		22,985		(0.8	)	6.4
Finance, insurance and other, net	3,838		3,881		(1.1	)	6.6
Total	$	215,865	$	207,226	4.2		11.8
GROSS MARGIN %:
New vehicle retail sales	5.8		5.8
Used vehicle retail sales	6.0		7.3
Used vehicle wholesale sales	2.9		8.2
Total used	5.6		7.4
Parts and service	44.8		45.7
Finance, insurance and other, net	100.0		100.0
Total	11.6		12.4
GROSS PROFIT:
New vehicle retail sales	$	7,948	$	7,688	3.4		11.4
Used vehicle retail sales	2,730		3,129		(12.8	)	(6.4	)
Used vehicle wholesale sales	217		453		(52.1	)	(50.7	)
Total used	2,947		3,582		(17.7	)	(12.0	)
Parts and service	10,203		10,499		(2.8	)	4.1
Finance, insurance and other, net	3,838		3,881		(1.1	)	6.6
Total	$	24,936	$	25,650	(2.8	)	4.4
UNITS SOLD:
Retail new vehicles sold	4,130		3,856		7.1
Retail used vehicles sold	2,067		1,969		5.0
Wholesale used vehicles sold	671		506		32.6
Total used	2,738		2,475		10.6
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	33,023	$	34,147	(3.3	)	3.8
Used vehicle retail	$	21,994	$	21,915	0.4		7.6
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,924	$	1,994	(3.5	)	4.0
Used vehicle retail sales	1,321		1,589		(16.9	)	(10.9	)
Used vehicle wholesale sales	323		895		(63.9	)	(62.8	)
Total used	1,076		1,447		(25.6	)	(20.5	)
Finance, insurance and other, net (per retail unit)	$	619	$	666	(7.1	)	0.2
OTHER:
SG&A expenses	$	22,853	$	23,346	(2.1	)	5.2
Adjusted SG&A expenses ⁽²⁾	$	22,426	$	23,346	(3.9	)	3.0
SG&A as % revenues	10.6		11.3
Adjusted SG&A as % revenues ⁽²⁾	10.4		11.3
SG&A as % gross profit	91.6		91.0
Adjusted SG&A as % gross profit ⁽²⁾	89.9		91.0
Operating margin %	0.6		0.8
Adjusted operating margin % ⁽²⁾	0.8		0.8



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

	Three Months Ended June 30,
	2018		2017			% Increase/(Decrease)		Constant Currency ⁽²⁾% Increase/(Decrease)
REVENUES:
New vehicle retail sales	$	1,442,408	$	1,443,260		(0.1	)	(0.6	)
Used vehicle retail sales	750,430		683,759			9.8		8.8
Used vehicle wholesale sales	79,644		98,887			(19.5	)	(21.1	)
Total used	830,074		782,646			6.1		5.0
Parts and service	338,212		330,250			2.4		2.0
Finance, insurance and other, net	109,159		105,757			3.2		2.8
Total	$	2,719,853	$	2,661,913		2.2		1.5
GROSS MARGIN %:
New vehicle retail sales	5.0		5.2
Used vehicle retail sales	6.3		6.6
Used vehicle wholesale sales	0.9		(0.2		)
Total used	5.7		5.7
Parts and service	54.4		53.9
Finance, insurance and other, net	100.0		100.0
Total	15.2		15.1
GROSS PROFIT:
New vehicle retail sales	$	72,065	$	74,654		(3.5	)	(3.8	)
Used vehicle retail sales	46,968		44,822			4.8		4.0
Used vehicle wholesale sales	699		(240		)	391.3		413.1
Total used	47,667		44,582			6.9		6.2
Parts and service	183,823		178,121			3.2		2.7
Finance, insurance and other, net	109,159		105,757			3.2		2.8
Total	$	412,714	$	403,114		2.4		1.9
UNITS SOLD:
Retail new vehicles sold	40,267		40,722			(1.1	)
Retail used vehicles sold	34,965		31,915			9.6
Wholesale used vehicles sold	11,934		14,022			(14.9	)
Total used	46,899		45,937			2.1
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	35,821	$	35,442		1.1		0.6
Used vehicle retail	$	21,462	$	21,424		0.2		(0.7	)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,790	$	1,833		(2.3	)	(2.7	)
Used vehicle retail sales	1,343		1,404			(4.3	)	(5.1	)
Used vehicle wholesale sales	59		(17		)	447.1		467.9
Total used	1,016		971			4.6		4.0
Finance, insurance and other, net (per retail unit)	$	1,451	$	1,456		(0.3	)	(0.7	)
OTHER:
SG&A expenses	$	306,432	$	296,677		3.3		2.8
Adjusted SG&A expenses ⁽²⁾	$	298,193	$	295,746		0.8		0.3
SG&A as % revenues	11.3		11.1
Adjusted SG&A as % revenues ⁽²⁾	11.0		11.1
SG&A as % gross profit	74.2		73.6
Adjusted SG&A as % gross profit ⁽²⁾	72.3		73.4
Operating margin %	3.2		3.5
Adjusted operating margin % ⁽²⁾	3.6		3.5

⁽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.



	Six Months Ended June 30,
	2018		2017			% Increase/ (Decrease)		Constant Currency⁽²⁾ % Increase/(Decrease)
REVENUES:
New vehicle retail sales	$	2,849,922	$	2,776,299		2.7		1.4
Used vehicle retail sales	1,474,594		1,342,311			9.9		8.2
Used vehicle wholesale sales	172,338		202,933			(15.1	)	(17.8	)
Total used	1,646,932		1,545,244			6.6		4.8
Parts and service	671,699		648,953			3.5		2.7
Finance, insurance and other, net	215,818		201,911			6.9		6.1
Total	$	5,384,371	$	5,172,407		4.1		2.7
GROSS MARGIN %:
New vehicle retail sales	5.0		5.2
Used vehicle retail sales	6.0		6.7
Used vehicle wholesale sales	1.3		(0.1		)
Total used	5.5		5.8
Parts and service	53.8		54.0
Finance, insurance and other, net	100.0		100.0
Total	15.0		15.2
GROSS PROFIT:
New vehicle retail sales	$	142,501	$	143,678		(0.8	)	(2.0	)
Used vehicle retail sales	88,119		89,727			(1.8	)	(3.0	)
Used vehicle wholesale sales	2,225		(121		)	1,938.8		1,979.1
Total used	90,344		89,606			0.8		(0.3	)
Parts and service	361,610		350,234			3.2		2.3
Finance, insurance and other, net	215,818		201,911			6.9		6.1
Total	$	810,273	$	785,429		3.2		2.2
UNITS SOLD:
Retail new vehicles sold	78,496		78,800			(0.4	)
Retail used vehicles sold	68,758		63,403			8.4
Wholesale used vehicles sold	25,847		28,414			(9.0	)
Total used	94,605		91,817			3.0
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	36,307	$	35,232		3.0		1.8
Used vehicle retail	$	21,446	$	21,171		1.3		(0.2	)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,815	$	1,823		(0.4	)	(1.7	)
Used vehicle retail sales	1,282		1,415			(9.4	)	(10.5	)
Used vehicle wholesale sales	86		(4		)	2,250.0		2,165.7
Total used	955		976			(2.2	)	(3.3	)
Finance, insurance and other, net (per retail unit)	$	1,466	$	1,420		3.2		2.5

OTHER:
SG&A expenses	$	612,632	$	584,973		4.7		3.7
Adjusted SG&A expenses⁽²⁾	$	604,393	$	585,875		3.2		2.1
SG&A as % revenues	11.4		11.3
Adjusted SG&A as % revenues⁽²⁾	11.2		11.3
SG&A as % gross profit	75.6		74.5
Adjusted SG&A as % gross profit ⁽²⁾	74.6		74.6
Operating margin %	3.0		3.3
Adjusted operating margin % ⁽²⁾	3.3		3.3

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



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

		Three Months Ended June 30,
		2018			2017			% Increase/ (Decrease)
SG&A RECONCILIATION:
	As reported	$	234,279		$	243,844		(3.9	)
	Pre-tax adjustments:
	Catastrophic events	(5,812		)	(643		)
	Gain on real estate and dealership transactions	20,119			—
	Legal settlements	(2,000		)	—
	Adjusted SG&A ⁽¹⁾	$	246,586		$	243,201		1.4
SG&A AS % REVENUES:
	Unadjusted	10.8			11.5
	Adjusted ⁽¹⁾	11.4			11.5
SG&A AS % GROSS PROFIT:
	Unadjusted	66.8			71.6
	Adjusted ⁽¹⁾	70.3			71.4
OPERATING MARGIN %:
	Unadjusted	4.6			4.0
	Adjusted ^{(1), (2)}	4.2			4.0
PRETAX MARGIN %:
	Unadjusted	3.2			2.6
	Adjusted ^{(1), (2)}	2.8			2.7
SAME STORE SG&A RECONCILIATION:
	As reported	$	249,033		$	242,559		2.7
	Pre-tax adjustments:
	Catastrophic events	(5,812		)	(643		)
	Legal settlements	(2,000		)	—
	Adjusted Same Store SG&A ⁽¹⁾	$	241,221		$	241,916		(0.3	)
SAME STORE SG&A AS % REVENUES:
	Unadjusted	11.7			11.5
	Adjusted ⁽¹⁾	11.4			11.4
SAME STORE SG&A AS % GROSS PROFIT:
	Unadjusted	72.5			71.6
	Adjusted ⁽¹⁾	70.3			71.4
SAME STORE OPERATING MARGIN %:
	Unadjusted	3.7			4.0
	Adjusted^{(1), (3)}	4.2			4.0



		Six Months Ended June 30,
		2018			2017			% Increase/ (Decrease)
SG&A RECONCILIATION:
	As reported	$	487,220		$	480,117		1.5
	Pre-tax adjustments:
	Catastrophic events	(5,812		)	(643		)
	Gain on real estate and dealership transactions	20,119			—
	Legal settlements	(2,000		)	1,833
	Adjusted SG&A ⁽¹⁾	$	499,527		$	481,307		3.8
SG&A AS % REVENUES:
	Unadjusted	11.4			11.7
	Adjusted ⁽¹⁾	11.7			11.8
SG&A AS % OF GROSS PROFIT:
	Unadjusted	71.0			72.6
	Adjusted ⁽¹⁾	72.8			72.8
OPERATING MARGIN %:
	Unadjusted	4.0			3.8
	Adjusted ^{(1), (2)}	3.8			3.8
PRETAX MARGIN %:
	Unadjusted	2.6			2.5
	Adjusted ^{(1), (2)}	2.4			2.5
SAME STORE SG&A RECONCILIATION:
	As reported	$	496,645		$	478,610		3.8
	Pre-tax adjustments:
	Catastrophic events	(5,812		)	(643		)
	Legal settlements	(2,000		)	1,833
	Adjusted Same Store SG&A ⁽¹⁾	$	488,833		$	479,800		1.9
SAME STORE SG&A AS % REVENUES:
	Unadjusted	11.9			11.7
	Adjusted ⁽¹⁾	11.7			11.7
SAME STORE SG&A AS % GROSS PROFIT:
	Unadjusted	73.8			72.6
	Adjusted ⁽¹⁾	72.6			72.8
SAME STORE OPERATING MARGIN %:
	Unadjusted	3.5			3.9
	Adjusted ^{(1), (3)}	3.8			3.8

⁽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 $4,268 for the three and six months ended June 30, 2018.

⁽³⁾Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $4,022 for the three and six months ended June 30, 2018.



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

		Three Months Ended June 30,
		2018		2017			% Increase/ (Decrease)
SG&A RECONCILIATION:
	As reported	$	62,258	$	42,456		46.6
	Pre-tax adjustments:
	Acquisition costs	—		(288		)
	Adjusted SG&A ⁽¹⁾	$	62,258	$	42,168		47.6
SG&A AS % REVENUES:
	Unadjusted	9.3		9.7
	Adjusted ⁽¹⁾	9.3		9.6
SG&A AS % GROSS PROFIT:
	Unadjusted	83.2		83.4
	Adjusted ⁽¹⁾	83.2		82.8
OPERATING MARGIN %:
	Unadjusted	1.4		1.5
	Adjusted ⁽¹⁾	1.4		1.6
PRETAX MARGIN %:
	Unadjusted	0.9		1.1
	Adjusted ⁽¹⁾	0.9		1.2
SAME STORE SG&A RECONCILIATION:
	As reported	$	46,319	$	42,087		10.1
	Pre-tax adjustments:
	Acquisition costs	—		(288		)
	Adjusted Same Store SG&A⁽¹⁾	$	46,319	$	41,799		10.8
SAME STORE SG&A AS % REVENUES:
	Unadjusted	9.4		9.7
	Adjusted ⁽¹⁾	9.4		9.6
SAME STORE SG&A AS % GROSS PROFIT:
	Unadjusted	81.1		83.0
	Adjusted ⁽¹⁾	81.1		82.5
SAME STORE OPERATING MARGIN %:
	Unadjusted	1.7		1.6
	Adjusted ⁽¹⁾	1.7		1.6



		Six Months Ended June 30,
		2018		2017			% Increase/(Decrease)
SG&A RECONCILIATION:
	As reported	$	121,854	$	84,080		44.9
	Pre-tax adjustments:
	Acquisition costs	—		(288		)
	Adjusted SG&A ⁽¹⁾	$	121,854	$	83,792		45.4
SG&A AS % REVENUES:
	Unadjusted	9.2		9.5
	Adjusted ⁽¹⁾	9.2		9.4
SG&A AS % OF GROSS PROFIT:
	Unadjusted	83.3		83.1
	Adjusted ⁽¹⁾	83.3		82.8
OPERATING MARGIN %:
	Unadjusted	1.4		1.5
	Adjusted ⁽¹⁾	1.4		1.6
PRETAX MARGIN %:
	Unadjusted	0.9		1.2
	Adjusted ⁽¹⁾	0.9		1.2
SAME STORE SG&A RECONCILIATION:
	As reported	$	93,134	$	83,017		12.2
	Pre-tax adjustments:
	Acquisition costs	—		(288		)
	Adjusted Same Store SG&A ⁽¹⁾	$	93,134	$	82,729		12.6
SAME STORE SG&A AS % REVENUES:
	Unadjusted	9.3		9.4
	Adjusted ⁽¹⁾	9.3		9.4
SAME STORE SG&A AS % GROSS PROFIT:
	Unadjusted	82.8		82.5
	Adjusted ⁽¹⁾	82.8		82.2
SAME STORE OPERATING MARGIN %:
	Unadjusted	1.5		1.6
	Adjusted ⁽¹⁾	1.5		1.6



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

		Three Months Ended June 30,
		2018			2017		% Increase/(Decrease)
SG&A RECONCILIATION:
	As reported	$	11,555		$	12,268	(5.8	)
	Pre-tax adjustments:
	Legal settlements	(550		)	—
	Adjusted SG&A⁽¹⁾	$	11,005		$	12,268	(10.3	)
SG&A AS % REVENUES:
	Unadjusted	10.6			11.0
	Adjusted ⁽¹⁾	10.1			11.0
SG&A AS % GROSS PROFIT:
	Unadjusted	91.1			91.0
	Adjusted ⁽¹⁾	86.7			91.0
OPERATING MARGIN %:
	Unadjusted	0.6			0.8
	Adjusted ⁽¹⁾	1.1			0.8
PRETAX MARGIN %:
	Unadjusted	0.2			0.6
	Adjusted ⁽¹⁾	0.7			0.6
SAME STORE SG&A RECONCILIATION:
	As reported	$	11,080		$	12,031	(7.9	)
	Pre-tax adjustments:
	Legal settlements	(427		)	—
	Adjusted Same Store SG&A ⁽¹⁾	$	10,653		$	12,031	(11.5	)
SAME STORE SG&A AS % REVENUES:
	Unadjusted	10.6			10.8
	Adjusted ⁽¹⁾	10.2			10.8
SAME STORE SG&A AS % GROSS PROFIT:
	Unadjusted	90.0			89.4
	Adjusted ⁽¹⁾	86.6			89.4
SAME STORE OPERATING MARGIN %:
	Unadjusted	0.7			1.0
	Adjusted ⁽¹⁾	1.1			1.0



		Six Months Ended June 30,
		2018			2017		% Increase/ (Decrease)
SG&A RECONCILIATION:
	As reported	$	23,365		$	24,150	(3.3	)
	Pre-tax adjustments:
	Legal settlements	(550		)	—
	Adjusted SG&A⁽¹⁾	$	22,815		$	24,150	(5.5	)
SG&A AS % REVENUES:
	Unadjusted	10.6			11.4
	Adjusted ⁽¹⁾	10.4			11.4
SG&A AS % OF GROSS PROFIT:
	Unadjusted	92.3			92.5
	Adjusted ⁽¹⁾	90.1			92.5
OPERATING MARGIN %:
	Unadjusted	0.5			0.6
	Adjusted ⁽¹⁾	0.7			0.6
PRETAX MARGIN %:
	Unadjusted	0.1			0.4
	Adjusted ⁽¹⁾	0.3			0.4
SAME STORE SG&A RECONCILIATION:
	As reported	$	22,853		$	23,346	(2.1	)
	Pre-tax adjustments:
	Legal settlements	(427		)	—
	Adjusted Same Store SG&A ⁽¹⁾	$	22,426		$	23,346	(3.9	)
SAME STORE SG&A AS % REVENUES:
	Unadjusted	10.6			11.3
	Adjusted ⁽¹⁾	10.4			11.3
SAME STORE SG&A AS % GROSS PROFIT:
	Unadjusted	91.6			91.0
	Adjusted ⁽¹⁾	89.9			91.0
SAME STORE OPERATING MARGIN %:
	Unadjusted	0.6			0.8
	Adjusted ⁽¹⁾	0.8			0.8



Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - Consolidated
(Unaudited)
(Dollars in thousands, except per share amounts)
		Three Months Ended June 30,
		2018			2017			% Increase/(Decrease)
NET INCOME RECONCILIATION:
	As reported
	Pretax Net Income	$	75,188		$	61,690
	Income Tax Provision	(18,725		)	(22,557		)
	Net Income	$	56,463		$	39,133		44.3
	Effective Tax Rate	24.9		%	36.6		%
	Adjustments:
	Catastrophic events
	Pre-tax	$	5,812		$	643
	Tax impact	(1,444		)	(250		)
	Gain on real estate and dealership transactions
	Pre-tax	(20,119		)	—
	Tax impact	4,917			—
	Acquisition costs
	Pre-tax	—			288
	Tax impact	—			—
	Legal settlements
	Pre-tax	2,550			—
	Tax impact	(568		)	—
	Non-cash asset impairment
	Pre-tax	4,268			—
	Tax impact	(1,089		)	—
	Adjusted
	Pretax Net Income	$	67,699		$	62,621
	Income Tax Provision	(16,909		)	(22,807		)
	Adjusted net income ⁽¹⁾	$	50,790		$	39,814		27.6
	Effective Tax Rate	25.0		%	36.4		%
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED
	COMMON SHARES RECONCILIATION:
	Adjusted net income ⁽¹⁾	$	50,790		$	39,814		27.6
	Less: Adjusted earnings allocated to participating securities	1,722			1,413			21.9
	Adjusted net income available to diluted common shares ⁽¹⁾	$	49,068		$	38,401		27.8
DILUTED (LOSS) INCOME PER COMMON SHARE RECONCILIATION:
	As reported	$	2.72		$	1.84		47.8
	After-tax adjustments:
	Catastrophic events	0.21			0.02
	Gain on real estate and dealership transactions	(0.73		)	—
	Acquisition costs including related tax impact	—			0.01
	Legal settlements	0.10			—
	Non-cash asset impairment	0.15			—
	Adjusted diluted income per share ⁽¹⁾	$	2.45		$	1.87		31.0



SG&A RECONCILIATION:
	As reported	$	308,092		$	298,568		3.2
	Pre-tax adjustments:
	Catastrophic events	(5,812		)	(643		)
	Gain on real estate and dealership transactions	20,119			—
	Acquisition costs	—			(288		)
	Legal settlements	(2,550		)	—
	Adjusted SG&A ⁽¹⁾	$	319,849		$	297,637		7.5
SG&A AS % REVENUES:
	Unadjusted	10.5			11.2
	Adjusted ⁽¹⁾	10.9			11.1
SG&A AS % GROSS PROFIT:
	Unadjusted	70.3			73.7
	Adjusted ⁽¹⁾	73.0			73.5
OPERATING MARGIN %:
	Unadjusted	3.7			3.5
	Adjusted ^{(1), (2)}	3.5			3.5
PRETAX MARGIN %:
	Unadjusted	2.6			2.3
	Adjusted ^{(1), (2)}	2.3			2.3
SAME STORE SG&A RECONCILIATION:
	As reported	$	306,432		$	296,677		3.3
	Pre-tax adjustments:
	Catastrophic events	(5,812		)	(643		)
	Acquisition costs	—			(288		)
	Legal settlements	(2,427		)	—
	Adjusted Same Store SG&A ⁽¹⁾	$	298,193		$	295,746		0.8
SAME STORE SG&A AS % REVENUES:
	Unadjusted	11.3			11.1
	Adjusted ⁽¹⁾	11.0			11.1
SAME STORE SG&A AS % GROSS PROFIT:
	Unadjusted	74.2			73.6
	Adjusted ⁽¹⁾	72.3			73.4
SAME STORE OPERATING MARGIN %:
	Unadjusted	3.2			3.5
	Adjusted ^{(1), (3)}	3.6			3.5



		Six Months Ended June 30,
		2018			2017			% Increase/(Decrease)
NET INCOME RECONCILIATION:
	As reported
	Pretax Net Income	$	121,355		$	112,886
	Income Tax Provision	(29,078		)	(39,814		)
	Net Income	$	92,277		$	73,072		26.3
	Effective Tax Rate	24.0		%	35.3		%
	Adjustments:
	Catastrophic events
	Pre-tax	$	5,812		$	643
	Tax impact	(1,444		)	(250		)
	Gain on real estate and dealership transactions
	Pre-tax	(20,119		)	—
	Tax impact	4,917			—
	Acquisition costs
	Pre-tax	—			288
	Tax impact	—			—
	Legal settlements
	Pre-tax	2,550			(1,833		)
	Tax impact	(568		)	696
	Non-cash asset impairment
	Pre-tax	4,268			—
	Tax impact	(1,089		)	—
	Adjusted
	Pretax Net Income	$	113,866		$	111,984
	Income Tax Provision	(27,262		)	(39,368		)
	Adjusted net income ⁽¹⁾	$	86,604		$	72,616		19.3
	Effective Tax Rate	23.9		%	35.2		%
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED
	COMMON SHARES RECONCILIATION:
	Adjusted net income ⁽¹⁾	$	86,604		$	72,616		19.3
	Less: Adjusted earnings allocated to participating securities	2,930			2,628			11.5
	Adjusted net income available to diluted common shares ⁽¹⁾	$	83,674		$	69,988		19.6
DILUTED INCOME PER COMMON SHARE RECONCILIATION:
	As reported	$	4.42		$	3.42		29.2
	After-tax adjustments:	—			—
	Catastrophic events	0.21			0.02
	Gain on real estate and dealership transactions	(0.73		)	—
	Acquisition costs including related tax impact	—			0.01
	Legal settlements	0.10			(0.05		)
	Non-cash asset impairment	0.15			—
	Adjusted diluted income per share ⁽¹⁾	$	4.15		$	3.40		22.1



SG&A RECONCILIATION:
	As reported	$	632,439		$	588,347		7.5
	Pre-tax adjustments:
	Catastrophic events	(5,812		)	(643		)
	Gain on real estate and dealership transactions	20,119			—
	Acquisition costs	—			(288		)
	Legal settlements	(2,550		)	1,833
	Adjusted SG&A ⁽¹⁾	$	644,196		$	589,249		9.3
SG&A AS % REVENUES:
	Unadjusted	10.9			11.3
	Adjusted ⁽¹⁾	11.1			11.4
SG&A AS % OF GROSS PROFIT:
	Unadjusted	73.7			74.6
	Adjusted ⁽¹⁾	75.1			74.7
OPERATING MARGIN %:
	Unadjusted	3.2			3.3
	Adjusted ^{(1), (2)}	3.1			3.3
PRETAX MARGIN %:
	Unadjusted	2.1			2.2
	Adjusted ^{(1), (2)}	2.0			2.2
SAME STORE SG&A RECONCILIATION:
	As reported	$	612,632		$	584,973		4.7
	Pre-tax adjustments:
	Catastrophic events	(5,812		)	(643		)
	Acquisition costs	—			(288		)
	Legal settlements	(2,427		)	1,833
	Adjusted Same Store SG&A⁽¹⁾	$	604,393		$	585,875		3.2
SAME STORE SG&A AS % REVENUES:
	Unadjusted	11.4			11.3
	Adjusted ⁽¹⁾	11.2			11.3
SAME STORE SG&A AS % GROSS PROFIT:		—			—
	Unadjusted	75.6			74.5
	Adjusted ⁽¹⁾	74.6			74.6
SAME STORE OPERATING MARGIN %:
	Unadjusted	3.0			3.3
	Adjusted ^{(1), (3)}	3.3			3.3

⁽²⁾ Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $4,268 for the three and six months ended June 30, 2018.

⁽³⁾Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $4,022 for the three and six months ended June 30, 2018.

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GROUP 1 AUTOMOTIVE INC Reports