0001031203-13-000011.txt : 20130502 0001031203-13-000011.hdr.sgml : 20130502 20130502072619 ACCESSION NUMBER: 0001031203-13-000011 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20130502 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20130502 DATE AS OF CHANGE: 20130502 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GROUP 1 AUTOMOTIVE INC CENTRAL INDEX KEY: 0001031203 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-AUTO DEALERS & GASOLINE STATIONS [5500] IRS NUMBER: 760506313 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13461 FILM NUMBER: 13805383 BUSINESS ADDRESS: STREET 1: 800 GESSNER STREET 2: SUITE 500 CITY: HOUSTON STATE: TX ZIP: 77024 BUSINESS PHONE: 713-647-5700 MAIL ADDRESS: STREET 1: 800 GESSNER STREET 2: SUITE 500 CITY: HOUSTON STATE: TX ZIP: 77024 8-K 1 a20131stquarterearningsrel.htm CURRENT REPORT 2013 1st Quarter Earnings Release


 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
  
FORM 8-K
  
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 2, 2013
  
Group 1 Automotive, Inc.
(Exact name of Registrant as specified in its charter)
 
  
Delaware
 
1-13461
 
76-0506313
(State or other jurisdiction of
incorporation or organization)
 
(Commission
File Number)
 
(I.R.S. Employer
Identification No.)
800 Gessner, Suite 500
Houston, Texas 77024
(Address of principal executive offices) (Zip code)
(713) 647-5700
(Registrant’s telephone number including area code)
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 40.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 





Item 2.02.     Results of Operations and Financial Condition

On May 2, 2013, Group 1 Automotive, Inc., a Delaware corporation, issued a press release announcing its financial results for the three months ended March 31, 2013. A copy of the press release is attached hereto as Exhibit 99.1.
As provided in General Instruction B.2. of Form 8-K, the information in this Item 2.02 (including the press release attached as Exhibit 99.1 incorporated by reference in this Item 2.02) shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
 

Item 9.01.    Financial Statements and Exhibits.


99.1        Press release of Group 1 Automotive, Inc., dated as of May 2, 2013.




SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
 
 
 
 
 
 
Group 1 Automotive, Inc.
 
 
 
May 2, 2013
 
By:
 
/s/ John C. Rickel
Date
 
 
 
John C. Rickel, Senior Vice President and Chief Financial Officer





INDEX TO EXHIBITS
 

99.1         Press release of Group 1 Automotive, Inc., dated as of May 2, 2013.


 EX-99..1 2 exhibit991.htm PRESS RELEASE Exhibit 99.1
Exhibit 99.1


 

FOR IMMEDIATE RELEASE

Group 1 Automotive Reports Record 2013 First-Quarter Financial Results On Strong Revenue Growth And Improved Cost Leverage

HOUSTON, May 2, 2013 - Group 1 Automotive, Inc. (NYSE: GPI), an international, Fortune 500 automotive retailer, today reported adjusted first-quarter 2013 net income of $29.2 million, a 26.5 percent increase, and adjusted diluted earnings per common share of $1.16, a 19.6 percent increase, on a year-over-year comparable basis for the period ended March 31, 2013.

First-Quarter 2013 Consolidated Results (on a year-over-year, comparable basis unless otherwise noted)
•
Total gross profit grew 15.4 percent on 18.0 percent higher revenues of $2.0 billion.
•
New vehicle revenue increased 21.7 percent reflecting 18.5 percent higher unit sales, as same-store new vehicle unit sales grew 5.8 percent.
•
Used vehicle retail revenue increased 13.6 percent reflecting 12 percent higher used retail unit sales.
•
Selling, general and administrative (SG&A) expenses as a percent of gross profit improved 110 basis points, to 75.4 percent, with a same-store improvement of 130 basis points, to 74.7 percent.
•
Operating margin expanded 10 basis points to 3.3 percent, with a same-store operating margin expansion of 20 basis points to 3.5 percent.
•
Pretax income grew 25.4 percent to $46.8 million.
•
Consolidated effective tax rate was 37.7 percent.
•
Diluted earnings per common share increased 19.6 percent, to $1.16, on 26.5 percent higher net income of $29.2 million, both record first-quarter results for the company.

Corporate Development
As previously announced during the first quarter, Group 1 acquired four franchises in the United Kingdom and 22 franchises in Brazil with total estimated annual revenues of approximately $827.0 million and disposed of a franchise in California that generated trailing-12-month revenues of $35.0 million.

“I am pleased with Group 1's first-quarter operating results including significant revenue growth and solid expense leverage that delivered record first-quarter earnings,” said Earl J. Hesterberg, Group 1's president and chief executive officer. “We also significantly expanded the scale of our U.K. business and entered the rapidly-growing Brazilian automotive market. This is an exciting time for our company - an unprecedented growth phase which should support strong returns for our shareholders over time.”

Segment Results For First-Quarter 2013 (on a year-over-year basis unless otherwise noted)

United States:
Group 1's U.S. revenues were $1.7 billion, an increase of 8.5 percent. The revenue growth was primarily explained by unit sales increases of 7.4 percent in new vehicles and 6.1 percent in retail used vehicles, as well as an increase of 5.3 percent in parts and service revenue. The higher revenue drove gross profit growth of 8.8 percent, reflecting the higher new and used retail volumes, expanded parts and service margins of 100 basis points and a finance and insurance increase of 18.9 percent, or $136, to $1,339 per retail unit, which is another all-time any-quarter record for the company. The gross profit increase was partially offset by a reduction in wholesale used vehicle gross profit per unit.

On a comparable basis, SG&A expenses as a percent of gross profit improved 160 basis points to 74.8 percent, operating margin expanded to 3.6 percent and pretax margin increased to 2.6 percent. Group 1's U.S. operations accounted for 87.7 percent of total revenues, 90.8 percent of total gross profit and 93.9 percent of the company's adjusted pretax income.




 
United Kingdom:
Group 1's U.K. operations, which include significant acquisitions, accounted for 8.7 percent of total revenues, 6.4 percent of total gross profit and 4.6 percent of the company's adjusted pretax income. Gross profit grew 101.6 percent on 117.9 percent higher revenues of $171.1 million. Revenue growth was primarily driven by 146.5 percent and 102.3 percent increases in new and used vehicle retail unit sales, respectively. The gross profit increase was driven by parts and service growth of 77.2 percent and a finance and insurance increase of 159.0 percent, or $73, to $604 per retail unit, on the higher retail unit sales.

On a comparable basis, SG&A expenses as a percent of gross profit increased 370 basis points to 82.9 percent, with the increase more than explained by the new acquisitions, operating margin was 1.6 percent and pretax margin was 1.3 percent.
 
Brazil:
Group 1's Brazilian operations were acquired on Feb. 28. The contribution of approximately one month of results accounted for 3.6 percent of total revenues, 2.8 percent of total gross profit and 1.5 percent of the company's adjusted pretax income. Gross profit was $8.4 million on revenues of $71.0 million. New vehicle sales was the primary revenue contributor at 74.4 percent, while new vehicles and parts and service were the primary gross profit contributors at 52.8 percent and 32.4 percent, respectively.

On an adjusted basis, SG&A expenses as a percent of gross profit was 80.0 percent, operating margin was 2.0 percent and pretax margin was 1.0 percent. The adjusted net income generated by the Brazilian operations covered the dilutive effect of the shares issued for the transaction.
 
FIRST-Quarter Earnings Conference Call
Group 1's senior management will host a conference call today at 10 a.m. ET to discuss the first-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/news/events.aspx. A replay will be available for 30 days.

The conference call will also be available live by dialing in 10 minutes prior to the start of the call at:

Domestic: 1.877.317.6789
International: 1.412.317.6789
Conference ID: 10028096

A telephonic replay will be available following the call through May 9 at 9 a.m. ET by dialing:

Domestic: 1.877.344.7529
International: 1.412.317.0088
Conference ID: 10028096


About Group 1 Automotive, Inc.
Group 1 owns and operates 143 automotive dealerships, 182 franchises, and 36 collision centers in the United States, the United Kingdom and Brazil that offer 35 brands of automobiles. Through its dealerships, the company sells new and used cars and light trucks; arranges related vehicle financing, service and insurance contracts; provides automotive maintenance and repair services; and sells vehicle parts.

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

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements related to future, not past, events and are based on our current




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

SOURCE: Group 1 Automotive, Inc.

Investor Contacts:
Kim Paper Canning
Manager, Investor Relations
Group 1 Automotive, Inc.
713-647-5741 | kpaper@group1auto.com

Media Contacts:
Pete DeLongchamps
V.P. Financial Services and Manufacturer Relations
Group 1 Automotive, Inc.
713-647-5770 | pdelongchamps@group1auto.com
or
Clint Woods
Pierpont Communications, Inc.
713-627-2223 | cwoods@piercom.com






Group 1 Automotive, Inc.
 
Consolidated Statements of Operations
 
(Unaudited)
 
(In thousands, except per share amounts)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
 
 
2013
 
2012
 
% Change
 
REVENUES:
 
 
 
 
 
 
 
New vehicle retail sales
 
$
1,110,235

 
$
912,595

 
21.7

 
Used vehicle retail sales
 
471,399

 
414,974

 
13.6

 
Used vehicle wholesale sales
 
74,551

 
66,857

 
11.5

 
Parts and service
 
237,510

 
213,101

 
11.5

 
Finance and insurance
 
70,137

 
57,218

 
22.6

 
Total revenues
 
1,963,832

 
1,664,745

 
18.0

 
COST OF SALES:
 
 
 
 
 
 
 
New vehicle retail sales
 
1,047,599

 
859,775

 
21.8

 
Used vehicle retail sales
 
431,123

 
378,577

 
13.9

 
Used vehicle wholesale sales
 
72,129

 
64,153

 
12.4

 
Parts and service
 
112,492

 
101,816

 
10.5

 
Total cost of sales
 
1,663,343

 
1,404,321

 
18.4

 
GROSS PROFIT
 
300,489

 
260,424

 
15.4

 
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
 
233,433

 
199,112

 
17.2

 
DEPRECIATION AND AMORTIZATION EXPENSE
 
8,413

 
7,236

 
16.3

 
ASSET IMPAIRMENTS
 
—

 
101

 
(100.0
)
 
OPERATING INCOME
 
58,643

 
53,975

 
8.6

 
OTHER EXPENSE:
 
 
 
 
 
 
 
Floorplan interest expense
 
(9,364
)
 
(7,619
)
 
22.9

 
Other interest expense, net
 
(9,242
)
 
(9,040
)
 
2.2

 
Other expense, net
 
(789
)
 
—

 
—

 
INCOME BEFORE INCOME TAXES
 
39,248

 
37,316

 
5.2

 
PROVISION FOR INCOME TAXES
 
(17,130
)
 
(14,199
)
 
20.6

 
NET INCOME
 
$
22,118

 
$
23,117

 
(4.3
)
 
DILUTED INCOME PER SHARE
 
$
0.88

 
$
0.97

 
(9.3
)
 
Weighted average dilutive common shares outstanding
 
24,113

 
22,532

 
7.0

 
Weighted average participating securities
 
1,072

 
1,209

 
(11.3
)
 
Total weighted average shares outstanding
 
25,185

 
23,741

 
6.1

 






Group 1 Automotive, Inc.
 
Consolidated Balance Sheets
 
(Dollars in thousands)
 
 
 
March 31,
 
December 31,
 
 
 
 
 
2013
 
2012
 
% Change
 
 
 
(Unaudited)
 
 
 
 
 
ASSETS:
 
 
 
 
 
 
 
CURRENT ASSETS:
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
17,729

 
$
4,650

 
281.3

 
Contracts in transit and vehicle receivables, net
 
190,879

 
204,396

 
(6.6
)
 
Accounts and notes receivable, net
 
131,662

 
111,228

 
18.4

 
Inventories, net
 
1,353,120

 
1,194,288

 
13.3

 
Deferred income taxes
 
19,967

 
19,750

 
1.1

 
Prepaid expenses and other current assets
 
25,698

 
31,869

 
(19.4
)
 
Total current assets
 
1,739,055

 
1,566,181

 
11.0

 
PROPERTY AND EQUIPMENT, net
 
699,940

 
667,768

 
4.8

 
GOODWILL AND INTANGIBLE FRANCHISE RIGHTS
 
935,918

 
778,442

 
20.2

 
OTHER ASSETS
 
20,820

 
10,624

 
96.0

 
Total assets
 
$
3,395,733

 
$
3,023,015

 
12.3

 
LIABILITIES AND STOCKHOLDERS' EQUITY:
 
 
 
 
 
 
 
CURRENT LIABILITIES:
 
 
 
 
 
 
 
Floorplan notes payable - credit facility
 
$
1,004,165

 
$
968,959

 
3.6

 
Offset account related to floorplan notes payable - credit facility
 
(59,245
)
 
(112,261
)
 
(47.2
)
 
Floorplan notes payable - manufacturer affiliates
 
288,808

 
211,965

 
36.3

 
Current maturities of long-term debt and short-term financing
 
37,209

 
31,358

 
18.7

 
Accounts payable
 
255,336

 
167,439

 
52.5

 
Accrued expenses
 
136,914

 
128,118

 
6.9

 
Total current liabilities
 
1,663,187

 
1,395,578

 
19.2

 
2.25% CONVERTIBLE SENIOR NOTES (aggregate principal of $182,753 at March 31, 2013 and December 31, 2012)
 
154,299

 
152,363

 
1.3

 
3.00% CONVERTIBLE SENIOR NOTES (aggregate principal of $115,000 at March 31, 2013 and December 31, 2012)
 
81,578

 
80,706

 
1.1

 
MORTGAGE FACILITY, net of current maturities
 
47,402

 
53,643

 
(11.6
)
 
OTHER REAL ESTATE RELATED AND LONG-TERM DEBT, net of current maturities
 
227,571

 
232,285

 
(2.0
)
 
CAPITAL LEASE OBLIGATIONS RELATED TO REAL ESTATE, net of current maturities
 
38,889

 
36,019

 
8.0

 
DEFERRED INCOME TAXES
 
105,152

 
94,130

 
11.7

 
LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES
 
40,379

 
43,089

 
(6.3
)
 
OTHER LIABILITIES
 
44,440

 
42,413

 
4.8

 
COMMITMENTS AND CONTINGENCIES
 
 
 
 
 
 
 
TEMPORARY EQUITY - REDEEMABLE EQUITY PORTION OF THE 3.00% CONVERTIBLE SENIOR NOTES
 
31,679

 
32,505

 
(2.5
)
 
STOCKHOLDERS' EQUITY:
 
 
 
 
 
 
 
Common stock
 
259

 
258

 
0.4

 
Additional paid-in capital
 
363,511

 
332,837

 
9.2

 
Retained earnings
 
696,366

 
677,863

 
2.7

 
Accumulated other comprehensive loss
 
(38,819
)
 
(33,057
)
 
17.4

 
Treasury stock
 
(60,160
)
 
(117,617
)
 
(48.9
)
 
Total stockholders' equity
 
961,157

 
860,284

 
11.7

 
Total liabilities and stockholders' equity
 
$
3,395,733

 
$
3,023,015

 
12.3

 





Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
 
March 31,
 
 
 
 
2013 (%)
 
2012 (%)
 
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
 
 
 
 
 
Region
Geographic Market
 
 
 
 
 
East
Massachusetts
 
6.4
 
10.6

 
 
New Jersey
 
4.8
 
5.1

 
 
Georgia
 
4.3
 
3.4

 
 
New York
 
2.9
 
3.4

 
 
Louisiana
 
2.5
 
2.8

 
 
New Hampshire
 
2.3
 
2.8

 
 
Mississippi
 
1.8
 
2.2

 
 
South Carolina
 
1.6
 
1.7

 
 
Florida
 
1.4
 
0.7

 
 
Alabama
 
0.9
 
1.1

 
 
Maryland
 
0.6
 
0.7

 
 
 
 
29.5
 
34.5

 
 
 
 
 
 
 
 
West
Texas
 
34.2
 
38.0

 
 
California
 
13.4
 
14.6

 
 
Oklahoma
 
7.4
 
7.7

 
 
Kansas
 
2.5
 
1.1

 
 
 
 
57.5
 
61.4

 
 
 
 
 
 
 
 
International
United Kingdom
 
8.5
 
4.1

 
 
Brazil
 
4.5
 
—

 
 
 
 
100.0
 
100.0

 
NEW VEHICLE UNIT SALES BRAND MIX:
 
 
 
 
 
Toyota/Scion/Lexus
 
 
27.6
 
30.7

 
Honda/Acura
 
 
12.3
 
10.9

 
Ford/Lincoln
 
 
11.5
 
10.3

 
Nissan/Infiniti
 
 
10.6
 
13.1

 
BMW/MINI
 
 
10.3
 
10.8

 
Volkswagen/Audi/Porsche
 
 
6.9
 
4.0

 
GM/Chevrolet/GMC/Buick/Cadillac
 
5.3
 
6.2

 
Mercedes Benz/smart/Sprinter
 
4.5
 
4.7

 
Hyundai/Kia
 
 
4.5
 
2.6

 
Chrysler/Dodge/Jeep/RAM
 
 
4.3
 
4.5

 
Other
 
 
2.2
 
2.2

 
 
 
 
100.0
 
100.0

 





Group 1 Automotive, Inc.
 
Additional Information - U.S.
 
(Unaudited)
 
(Dollars in thousands, except per unit amounts)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
 
 
2013
 
2012
 
% Change
 
REVENUES:
 
 
 
 
 
 
 
New vehicle retail sales
 
$
962,633

 
$
872,989

 
10.3

 
Used vehicle retail sales
 
418,339

 
392,273

 
6.6

 
Used vehicle wholesale sales
 
57,669

 
59,418

 
(2.9
)
 
Total used
 
476,008

 
451,691

 
5.4

 
Parts and service
 
216,354

 
205,385

 
5.3

 
Finance and insurance
 
66,792

 
56,154

 
18.9

 
Total
 
$
1,721,787

 
$
1,586,219

 
8.5

 
GROSS MARGIN %:
 
 
 
 
 
 
 
New vehicle retail sales
 
5.4

 
5.7

 
 
 
Used vehicle retail sales
 
9.0

 
9.0

 
 
 
Used vehicle wholesale sales
 
3.7

 
4.4

 
 
 
Total used
 
8.3

 
8.4

 
 
 
Parts and service
 
53.1

 
52.1

 
 
 
Finance and insurance
 
100.0

 
100.0

 
 
 
Total
 
15.9

 
15.8

 
 
 
GROSS PROFIT:
 
 
 
 
 
 
 
New vehicle retail sales
 
$
51,582

 
$
49,766

 
3.6

 
Used vehicle retail sales
 
37,619

 
35,336

 
6.5

 
Used vehicle wholesale sales
 
2,125

 
2,600

 
(18.3
)
 
Total used
 
39,744

 
37,936

 
4.8

 
Parts and service
 
114,823

 
107,061

 
7.3

 
Finance and insurance
 
66,793

 
56,154

 
18.9

 
Total
 
$
272,942

 
$
250,917

 
8.8

 
UNITS SOLD:
 
 
 
 
 
 
 
Retail new vehicles sold
 
28,778

 
26,783

 
7.4

 
Retail used vehicles sold
 
21,116

 
19,895

 
6.1

 
Wholesale used vehicles sold
 
9,657

 
9,304

 
3.8

 
Total used
 
30,773

 
29,199

 
5.4

 
AVERAGE RETAIL SALES PRICE:
 
 
 
 
 
 
 
New vehicle retail
 
$
33,450

 
$
32,595

 
2.6

 
Used vehicle retail
 
$
19,811

 
$
19,717

 
0.5

 
GROSS PROFIT PER UNIT SOLD:
 
 
 
 
 
 
 
New vehicle retail sales
 
$
1,792

 
$
1,858

 
(3.6
)
 
Used vehicle retail sales
 
1,782

 
1,776

 
0.3

 
Used vehicle wholesale sales
 
220

 
279

 
(21.1
)
 
Total used
 
1,292

 
1,299

 
(0.5
)
 
Finance and insurance (per retail unit)
 
$
1,339

 
$
1,203

 
11.3

 
OTHER: (1)
 
 
 
 
 
 
 
SG&A expenses
 
$
204,091

 
$
191,578

 
6.5

 
SG&A as % revenues
 
11.9

 
12.1

 
 
 
SG&A as % gross profit
 
74.8

 
76.4

 
 
 
Operating margin %
 
3.6

 
3.3

 
 
 
Pretax margin %
 
2.6

 
2.3

 
 
 
INTEREST EXPENSE:
 
 
 
 
 
 
 
Floorplan interest
 
$
8,296

 
$
7,482

 
10.9

 
Floorplan assistance
 
(8,173
)
 
(7,414
)
 
10.2

 
Net floorplan expense
 
$
123

 
$
68

 
80.9

 
Other interest expense, net
 
$
9,041

 
$
8,919

 
1.4

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




Group 1 Automotive, Inc.
 
Additional Information - U.K.
 
(Unaudited)
 
(Dollars in thousands, except per unit amounts)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
 
 
2013
 
2012
 
% Change
 
REVENUES:
 
 
 
 
 
 
 
New vehicle retail sales
 
$
94,824

 
$
39,607

 
139.4

 
Used vehicle retail sales
 
44,965

 
22,701

 
98.1

 
Used vehicle wholesale sales
 
13,765

 
7,439

 
85.0

 
Total used
 
58,730

 
30,140

 
94.9

 
Parts and service
 
14,771

 
7,716

 
91.4

 
Finance and insurance
 
2,753

 
1,063

 
159.0

 
Total
 
$
171,078

 
$
78,526

 
117.9

 
GROSS MARGIN %:
 
 
 
 
 
 
 
New vehicle retail sales
 
7.0

 
7.7

 
 
 
Used vehicle retail sales
 
4.9

 
4.7

 
 
 
Used vehicle wholesale sales
 
0.6

 
1.4

 
 
 
Total used
 
3.9

 
3.9

 
 
 
Parts and service
 
50.7

 
54.7

 
 
 
Finance and insurance
 
100.0

 
100.0

 
 
 
Total
 
11.2

 
12.1

 
 
 
GROSS PROFIT:
 
 
 
 
 
 
 
New vehicle retail sales
 
$
6,632

 
$
3,056

 
117.0

 
Used vehicle retail sales
 
2,217

 
1,061

 
109.0

 
Used vehicle wholesale sales
 
84

 
103

 
(18.4
)
 
Total used
 
2,301

 
1,164

 
97.7

 
Parts and service
 
7,484

 
4,224

 
77.2

 
Finance and insurance
 
2,753

 
1,063

 
159.0

 
Total
 
$
19,170

 
$
9,507

 
101.6

 
UNITS SOLD:
 
 
 
 
 
 
 
Retail new vehicles sold
 
2,827

 
1,147

 
146.5

 
Retail used vehicles sold
 
1,728

 
854

 
102.3

 
Wholesale used vehicles sold
 
1,443

 
690

 
109.1

 
Total used
 
3,171

 
1,544

 
105.4

 
AVERAGE RETAIL SALES PRICE:
 
 
 
 
 
 
 
New vehicle retail
 
$
33,542

 
$
34,531

 
(2.9
)
 
Used vehicle retail
 
$
26,021

 
$
26,582

 
(2.1
)
 
GROSS PROFIT PER UNIT SOLD:
 
 
 
 
 
 
 
New vehicle retail sales
 
$
2,346

 
$
2,664

 
(11.9
)
 
Used vehicle retail sales
 
1,283

 
1,242

 
3.3

 
Used vehicle wholesale sales
 
58

 
149

 
(61.1
)
 
Total used
 
726

 
754

 
(3.7
)
 
Finance and insurance (per retail unit)
 
$
604

 
$
531

 
13.7

 
OTHER: (1)
 
 
 
 
 
 
 
SG&A expenses
 
$
15,894

 
$
7,534

 
111.0

 
SG&A as % revenues
 
9.3

 
9.6

 
 
 
SG&A as % gross profit
 
82.9

 
79.2

 
 
 
Operating margin %
 
1.6

 
1.9

 
 
 
Pretax margin %
 
1.3

 
1.6

 
 
 
INTEREST EXPENSE:
 
 
 
 
 
 
 
Floorplan interest
 
$
306

 
$
137

 
123.4

 
Floorplan assistance
 
—

 
$
—

 
—

 
Net floorplan expense
 
$
306

 
$
137

 
123.4

 
Other interest expense, net
 
$
213

 
$
121

 
76.0

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




Group 1 Automotive, Inc.
Additional Information - Brazil
(Unaudited)
(Dollars in thousands, except per unit amounts)
 
 
 
 
 
 
Three Months Ended March 31, 2013
 
REVENUES:
 
 
 
New vehicle retail sales
 
$
52,778

 
Used vehicle retail sales
 
8,095

 
Used vehicle wholesale sales
 
3,117

 
Total used
 
11,212

 
Parts and service
 
6,385

 
Finance and insurance
 
592

 
Total
 
$
70,967

 
GROSS MARGIN %:
 
 
 
New vehicle retail sales
 
8.4

 
Used vehicle retail sales
 
5.4

 
Used vehicle wholesale sales
 
6.8

 
Total used
 
5.8

 
Parts and service
 
42.4

 
Finance and insurance
 
100.0

 
Total
 
11.8

 
GROSS PROFIT:
 
 
 
New vehicle retail sales
 
$
4,422

 
Used vehicle retail sales
 
440

 
Used vehicle wholesale sales
 
212

 
Total used
 
652

 
Parts and service
 
2,710

 
Finance and insurance
 
592

 
Total
 
$
8,376

 
UNITS SOLD:
 
 
 
Retail new vehicles sold
 
1,491

 
Retail used vehicles sold
 
394

 
Wholesale used vehicles sold
 
235

 
Total used
 
629

 
AVERAGE RETAIL SALES PRICE:
 
 
 
New vehicle retail
 
$
35,398

 
Used vehicle retail
 
$
20,546

 
GROSS PROFIT PER UNIT SOLD:
 
 
 
New vehicle retail sales
 
$
2,966

 
Used vehicle retail sales
 
1,117

 
Used vehicle wholesale sales
 
902

 
Total used
 
1,037

 
Finance and insurance (per retail unit)
 
$
314

 
OTHER: (1)
 
 
 
SG&A expenses
 
$
6,702

 
SG&A as % revenues
 
9.4

 
SG&A as % gross profit
 
80.0

 
Operating margin %
 
2.0

 
Pretax margin %
 
1.0

 
INTEREST EXPENSE:
 
 
 
Floorplan interest
 
$
762

 
Floorplan assistance
 
—

 
Net floorplan expense
 
$
762

 
Other interest expense, net
 
$
(12
)
 
(1) These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.




Group 1 Automotive, Inc.
 
Additional Information - Consolidated
 
(Unaudited)
 
(Dollars in thousands, except per unit amounts)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
 
 
2013
 
2012
 
% Change
 
REVENUES:
 
 
 
 
 
 
 
New vehicle retail sales
 
$
1,110,235

 
$
912,595

 
21.7

 
Used vehicle retail sales
 
471,399

 
414,974

 
13.6

 
Used vehicle wholesale sales
 
74,551

 
66,857

 
11.5

 
Total used
 
545,950

 
481,831

 
13.3

 
Parts and service
 
237,510

 
213,101

 
11.5

 
Finance and insurance
 
70,137

 
57,218

 
22.6

 
Total
 
$
1,963,832

 
$
1,664,745

 
18.0

 
GROSS MARGIN %:
 
 
 
 
 
 
 
New vehicle retail sales
 
5.6

 
5.8

 
 
 
Used vehicle retail sales
 
8.5

 
8.8

 
 
 
Used vehicle wholesale sales
 
3.2

 
4.0

 
 
 
Total used
 
7.8

 
8.1

 
 
 
Parts and service
 
52.6

 
52.2

 
 
 
Finance and insurance
 
100.0

 
100.0

 
 
 
Total
 
15.3

 
15.6

 
 
 
GROSS PROFIT:
 
 
 
 
 
 
 
New vehicle retail sales
 
$
62,636

 
$
52,820

 
18.6

 
Used vehicle retail sales
 
40,276

 
36,397

 
10.7

 
Used vehicle wholesale sales
 
2,422

 
2,704

 
(10.4
)
 
Total used
 
42,698

 
39,101

 
9.2

 
Parts and service
 
125,018

 
111,285

 
12.3

 
Finance and insurance
 
70,137

 
57,218

 
22.6

 
Total
 
$
300,489

 
$
260,424

 
15.4

 
UNITS SOLD:
 
 
 
 
 
 
 
Retail new vehicles sold
 
33,096

 
27,930

 
18.5

 
Retail used vehicles sold
 
23,238

 
20,749

 
12.0

 
Wholesale used vehicles sold
 
11,335

 
9,994

 
13.4

 
Total used
 
34,573

 
30,743

 
12.5

 
AVERAGE RETAIL SALES PRICE:
 
 
 
 
 
 
 
New vehicle retail
 
$
33,546

 
$
32,674

 
2.7

 
Used vehicle retail
 
$
20,286

 
$
20,000

 
1.4

 
GROSS PROFIT PER UNIT SOLD:
 
 
 
 
 
 
 
New vehicle retail sales
 
$
1,893

 
$
1,891

 
0.1

 
Used vehicle retail sales
 
1,733

 
1,754

 
(1.2
)
 
Used vehicle wholesale sales
 
214

 
271

 
(21.0
)
 
Total used
 
1,235

 
1,272

 
(2.9
)
 
Finance and insurance (per retail unit)
 
$
1,245

 
$
1,175

 
6.0

 
OTHER: (1)
 
 
 
 
 
 
 
SG&A expenses
 
$
226,687

 
$
199,112

 
13.8

 
SG&A as % revenues
 
11.5

 
12.0

 
 
 
SG&A as % gross profit
 
75.4

 
76.5

 
 
 
Operating margin %
 
3.3

 
3.2

 
 
 
Pretax margin %
 
2.4

 
2.2

 
 
 
INTEREST EXPENSE:
 
 
 
 
 
 
 
Floorplan interest
 
$
9,364

 
$
7,619

 
22.9

 
Floorplan assistance
 
(8,173
)
 
(7,414
)
 
10.2

 
Net floorplan expense
 
$
1,191

 
$
205

 
481.0

 
Other interest expense, net
 
$
9,242

 
$
9,040

 
2.2

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




Group 1 Automotive, Inc.
 
Additional Information - Same Store(1)
 
(Unaudited)
 
(Dollars in thousands, except per unit amounts)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
 
 
2013
 
2012
 
% Change
 
REVENUES:
 
 
 
 
 
 
New vehicle retail sales
$
967,330

 
$
889,162

 
8.8

 
Used vehicle retail sales
420,466

 
404,965

 
3.8

 
Used vehicle wholesale sales
62,157

 
64,390

 
(3.5
)
 
Total used
482,623

 
469,355

 
2.8

 
Parts and service
219,641

 
208,427

 
5.4

 
Finance and insurance
65,464

 
56,089

 
16.7

 
Total
$
1,735,058

 
$
1,623,033

 
6.9

 
GROSS MARGIN %:
 
 
 
 
 
 
New vehicle retail sales
5.4

 
5.8

 
 
 
Used vehicle retail sales
8.6

 
8.8

 
 
 
Used vehicle wholesale sales
3.5

 
4.1

 
 
 
Total used
8.0

 
8.2

 
 
 
Parts and service
52.8

 
52.2

 
 
 
Finance and insurance
100.0

 
100.0

 
 
 
Total
15.7

 
15.7

 
 
 
GROSS PROFIT:
 
 
 
 
 
 
New vehicle retail sales
$
52,281

 
$
51,563

 
1.4

 
Used vehicle retail sales
36,291

 
35,613

 
1.9

 
Used vehicle wholesale sales
2,175

 
2,666

 
(18.4
)
 
Total used
38,466

 
38,279

 
0.5

 
Parts and service
115,991

 
108,796

 
6.6

 
Finance and insurance
65,464

 
56,089

 
16.7

 
Total
$
272,202

 
$
254,727

 
6.9

 
UNITS SOLD:
 
 
 
 
 
 
Retail new vehicles sold
28,635

 
27,076

 
5.8

 
Retail used vehicles sold
20,670

 
20,193

 
2.4

 
Wholesale used vehicles sold
9,753

 
9,518

 
2.5

 
Total used
30,423

 
29,711

 
2.4

 
AVERAGE RETAIL SALES PRICE:
 
 
 
 
 
 
New vehicle retail
$
33,781

 
$
32,839

 
2.9

 
Used vehicle retail
$
20,342

 
$
20,055

 
1.4

 
GROSS PROFIT PER UNIT SOLD:
 
 
 
 
 
 
New vehicle retail sales
$
1,826

 
$
1,904

 
(4.1
)
 
Used vehicle retail sales
1,756

 
1,764

 
(0.5
)
 
Used vehicle wholesale sales
223

 
280

 
(20.4
)
 
Total used
1,264

 
1,288

 
(1.9
)
 
Finance and insurance (per retail unit)
$
1,328

 
$
1,187

 
11.9

 
OTHER: (2)
 
 
 
 
 
 
SG&A expenses
$
203,401

 
$
193,495

 
5.1

 
SG&A as % revenues
11.7

 
11.9

 
 
 
SG&A as % gross profit
74.7

 
76.0

 
 
 
Operating Margin %
3.5

 
3.3

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




Group 1 Automotive, Inc.
 
Reconciliation of Certain Non-GAAP Financial Measures - U.S.
 
(Unaudited)
 
 (Dollars in thousands, except per share amounts)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
 
 
2013
 
2012
 
% Change
 
SG&A RECONCILIATION:
 
 
 
 
 
 
 
As reported
$
209,484

 
$
191,578

 
9.3
 
 
  Pre-tax adjustments:
 
 
 
 
 
 
 
Acquisition Costs
(5,159
)
 
 
 
 
 
 
Catastrophic Events
(808
)
 
 
 
 
 
 
Gain on dealership disposition
574

 
 
 
 
 
 
Adjusted SG&A (1)
$
204,091

 
$
191,578

 
6.5
 
SG&A AS % REVENUES:
 
 
 
 
 
 
 
Unadjusted
12.2

 
12.1

 
 
 
 
Adjusted (1)
11.9

 
12.1

 
 
 
SG&A AS % GROSS PROFIT:
 
 
 
 
 
 
 
Unadjusted
76.8

 
76.4

 
 
 
 
Adjusted (1)
74.8

 
76.4

 
 
 
OPERATING MARGIN %:
 
 
 
 
 
 
 
Unadjusted
3.2

 
3.3

 
 
 
 
Adjusted (1),(2)
3.6

 
3.3

 
 
 
PRETAX MARGIN %:
 
 
 
 
 
 
 
Unadjusted
2.2

 
2.3

 
 
 
 
Adjusted (1),(2)
2.6

 
2.3

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




Group 1 Automotive, Inc.
 
Reconciliation of Certain Non-GAAP Financial Measures - U.K.
 
(Unaudited)
 
 (Dollars in thousands, except per share amounts)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
 
 
2013
 
2012
 
% Change
 
SG&A RECONCILIATION:
 
 
 
 
 
 
 
As reported
$
16,036

 
$
7,534

 
112.8

 
 
  Pre-tax adjustments:
 
 
 
 
 
 
 
Acquisition Costs
(142
)
 
 
 
 
 
 
Adjusted SG&A (1)
$
15,894

 
$
7,534

 
111.0

 
SG&A AS % REVENUES:
 
 
 
 
 
 
 
Unadjusted
9.4

 
9.6

 
 
 
 
Adjusted (1)
9.3

 
9.6

 
 
 
SG&A AS % GROSS PROFIT:
 
 
 
 
 
 
 
Unadjusted
83.7

 
79.2

 
 
 
 
Adjusted (1)
82.9

 
79.2

 
 
 
OPERATING MARGIN %:
 
 
 
 
 
 
 
Unadjusted
1.5

 
1.9

 
 
 
 
Adjusted (1),(2)
1.6

 
1.9

 
 
 
PRETAX MARGIN %:
 
 
 
 
 
 
 
Unadjusted
1.2

 
1.6

 
 
 
 
Adjusted (1),(2)
1.3

 
1.6

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




Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - Brazil
(Unaudited)
 (Dollars in thousands, except per share amounts)
 
 
 
 
 
 
Three Months Ended March 31, 2013
 
SG&A RECONCILIATION:
 
 
 
As reported
$
7,913

 
 
  Pre-tax adjustments:
 
 
 
Acquisition Costs
(1,211
)
 
 
Adjusted SG&A (1)
$
6,702

 
SG&A AS % REVENUES:
 
 
 
Unadjusted
11.2

 
 
Adjusted (1)
9.4

 
SG&A AS % GROSS PROFIT:
 
 
 
Unadjusted
94.5

 
 
Adjusted (1)
80.0

 
OPERATING MARGIN %:
 
 
 
Unadjusted
0.3

 
 
Adjusted (1),(2)
2.0

 
PRETAX MARGIN %:
 
 
 
Unadjusted
(1.8
)
 
 
Adjusted (1),(3)
1.0

 
(1) We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items. These adjusted measures are not measures of financial performance under GAAP. As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures. We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations.
(2) Excludes the impact of SG&A reconciling items above.
(3) Excludes the impact of SG&A reconciling items above, as well as the other expense of $789.




Group 1 Automotive, Inc.
 
Reconciliation of Certain Non-GAAP Financial Measures - Consolidated
 
(Unaudited)
 
 (Dollars in thousands, except per share amounts)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
 
 
2013
 
2012
 
% Change
 
NET INCOME RECONCILIATION:
 
 
 
 
 
 
 
As reported
$
22,118

 
$
23,117

 
(4.3
)
 
 
  After-tax adjustments:
 
 
 
 
 
 
 
Acquisition Costs (2)
4,639

 
—

 
 
 
 
Income tax effect of non-deductible acquisition costs
2,329

 
—

 
 
 
 
Catastrophic Events (3)
504

 
—

 
 
 
 
Gain on dealership disposition (4)
(356
)
 
—

 
 
 
 
Adjusted net income (1)
$
29,234

 
$
23,117

 
26.5

 
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED
COMMON SHARES RECONCILIATION
 
 
 
 
 
Adjusted net income
$
29,234

 
$
23,117

 
26.5

 
 
Less: Adjusted earnings allocated to participating securities
1,233

 
1,165

 
5.8

 
 
Adjusted net income available to diluted common shares
$
28,001

 
$
21,952

 
27.6

 
DILUTED INCOME PER COMMON SHARE RECONCILIATION:
 
 
As reported
$
0.88

 
$
0.97

 
(9.3
)
 
 
  After-tax adjustments:
 
 
 
 
 
 
 
Acquisition Costs
0.18

 
—

 
 
 
 
Income tax effect of non-deductible acquisition costs
0.09

 
 
 
 
 
 
Catastrophic Events
0.02

 
—

 
 
 
 
Gain on dealership disposition
(0.01
)
 
—

 
 
 
 
Adjusted diluted income per share (1)
$
1.16

 
$
0.97

 
19.6

 
SG&A RECONCILIATION:
 
 
 
 
 
 
 
As reported
$
233,433

 
$
199,112

 
17.2

 
 
  Pre-tax adjustments:
 
 
 
 
 
 
 
Acquisition Costs
(6,512
)
 
—

 
 
 
 
Catastrophic Events
(808
)
 
—

 
 
 
 
Gain on dealership disposition
574

 
—

 
 
 
 
Adjusted SG&A (1)
$
226,687

 
$
199,112

 
13.8

 
SG&A AS % REVENUES:
 
 
 
 
 
 
 
Unadjusted
11.9

 
12.0

 
 
 
 
Adjusted (1)
11.5

 
12.0

 
 
 
SG&A AS % GROSS PROFIT:
 
 
 
 
 
 
 
Unadjusted
77.7

 
76.5

 
 
 
 
Adjusted (1)
75.4

 
76.5

 
 
 
OPERATING MARGIN %:
 
 
 
 
 
 
 
Unadjusted
3.0

 
3.2

 
 
 
 
Adjusted (1),(5)
3.3

 
3.2

 
 
 
PRETAX MARGIN %:
 
 
 
 
 
 
 
Unadjusted
2.0

 
2.2

 
 
 
 
Adjusted (1),(7)
2.4

 
2.2

 
 
 




SAME STORE SG&A RECONCILIATION:
 
 
 
 
 
 
 
As reported
$
209,510

 
$
193,495

 
8.3
 
 
  Pre-tax adjustments:
 
 
 
 
 
 
 
Acquisition Costs
(5,301
)
 
—

 
 
 
 
Catastrophic Events
(808
)
 
—

 
 
 
 
Adjusted Same Store SG&A (1)
$
203,401

 
$
193,495

 
5.1
 
SAME STORE SG&A AS % REVENUES:
 
 
 
 
 
 
 
Unadjusted
12.1

 
11.9

 
 
 
 
Adjusted (1)
11.7

 
11.9

 
 
 
SAME STORE SG&A AS % GROSS PROFIT:
 
 
 
 
 
 
 
Unadjusted
77.0

 
76.0

 
 
 
 
Adjusted (1)
74.7

 
76.0

 
 
 
SAME STORE OPERATING MARGIN %:
 
 
 
 
 
 
 
Unadjusted
3.2

 
3.3

 
 
 
 
Adjusted (1),(6)
3.5

 
3.3

 
 
 
(1) We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items. These adjusted measures are not measures of financial performance under GAAP. As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures. We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations.
(2) Adjustment is net of tax benefit of $2,394 for the three months ended March 31, 2013, calculated utilizing the applicable federal and state tax rates for the adjustment.
(3) Adjustment is net of tax benefit of $304 for the three months ended March 31, 2013, calculated utilizing the applicable federal and state tax rates for the adjustment.
(4) Adjustment is net of tax provision of $218 for the three months ended March 31, 2013, calculated utilizing the applicable federal and state tax rates for the adjustment.
(5) Excludes the impact of SG&A reconciling items above.
(6) Excludes the impact of Same Store SG&A reconciling items. Adjusted Same Store Operating Income was $61,113 and $54,081 for the periods presented respectively.
(7) Excludes the impact of SG&A reconciling items above, as well as the other expense of $789.



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