Delaware | 1-13461 | 76-0506313 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) |
¨ | 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)) |
Group 1 Automotive, Inc. | ||||
July 25, 2013 | By: | /s/ John C. Rickel | ||
Date | John C. Rickel, Senior Vice President and Chief Financial Officer |
▪ | Total revenue increased 23.2 percent to an all-time quarterly record of $2.3 billion; total gross profit grew 19.6 percent to $341.3 million. |
▪ | New vehicle revenue increased 27.3 percent, reflecting 26.1 percent higher unit sales, as Same Store new vehicle unit sales grew 5.1 percent. |
▪ | Used vehicle retail revenue increased 17.2 percent, reflecting 16.5 percent higher used retail unit sales, as Same Store used vehicle unit sales grew 4.2 percent. |
▪ | Total parts, service, and collision sales increased 18.4 percent, with record Same Store growth of 8.8 percent. |
▪ | Same Store finance and insurance (F&I) per retail unit improved $122 to $1,328, a 10.1 percent increase. |
▪ | Selling, general and administrative (SG&A) expenses as a percent of gross profit improved 180 basis points, to 72.8 percent, with a Same Store improvement of 250 basis points, to 71.2 percent. |
▪ | Operating margin expanded 20 basis points to 3.6 percent, with a Same Store operating margin expansion of 40 basis points to 4.0 percent. Adjusted pretax income grew 33.1 percent to a record $63.6 million. |
▪ | Consolidated adjusted effective tax rate was 37.6 percent. |
▪ | Adjusted diluted earnings per common share increased 21.6 percent, to $1.52, on 33.6 percent higher adjusted net income of $39.7 million, both record results for the Company. |
Group 1 Automotive, Inc. | ||||||||||||
Consolidated Statements of Operations | ||||||||||||
(Unaudited) | ||||||||||||
(In thousands, except per share amounts) | ||||||||||||
Three Months Ended June 30, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 1,376,219 | $ | 1,080,710 | 27.3 | |||||||
Used vehicle retail sales | 534,804 | 456,234 | 17.2 | |||||||||
Used vehicle wholesale sales | 83,316 | 73,134 | 13.9 | |||||||||
Parts and service | 260,950 | 220,313 | 18.4 | |||||||||
Finance and insurance | 79,821 | 65,435 | 22.0 | |||||||||
Total revenues | 2,335,110 | 1,895,826 | 23.2 | |||||||||
COST OF SALES: | ||||||||||||
New vehicle retail sales | 1,295,854 | 1,016,868 | 27.4 | |||||||||
Used vehicle retail sales | 491,299 | 417,388 | 17.7 | |||||||||
Used vehicle wholesale sales | 82,804 | 72,811 | 13.7 | |||||||||
Parts and service | 123,879 | 103,415 | 19.8 | |||||||||
Total cost of sales | 1,993,836 | 1,610,482 | 23.8 | |||||||||
GROSS PROFIT | 341,274 | 285,344 | 19.6 | |||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 251,159 | 214,327 | 17.2 | |||||||||
DEPRECIATION AND AMORTIZATION EXPENSE | 8,884 | 7,742 | 14.8 | |||||||||
ASSET IMPAIRMENTS | 609 | 187 | 225.7 | |||||||||
OPERATING INCOME | 80,622 | 63,088 | 27.8 | |||||||||
OTHER EXPENSE: | ||||||||||||
Floorplan interest expense | (10,873 | ) | (7,863 | ) | 38.3 | |||||||
Other interest expense, net | (9,570 | ) | (9,190 | ) | 4.1 | |||||||
INCOME BEFORE INCOME TAXES | 60,179 | 46,035 | 30.7 | |||||||||
PROVISION FOR INCOME TAXES | (22,791 | ) | (17,410 | ) | 30.9 | |||||||
NET INCOME | $ | 37,388 | $ | 28,625 | 30.6 | |||||||
DILUTED INCOME PER SHARE | $ | 1.43 | $ | 1.20 | 19.2 | |||||||
Weighted average dilutive common shares outstanding | 24,980 | 22,513 | 11.0 | |||||||||
Weighted average participating securities | 1,112 | 1,317 | (15.6 | ) | ||||||||
Total weighted average shares outstanding | 26,092 | 23,830 | 9.5 |
Six Months Ended June 30, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 2,486,454 | $ | 1,993,305 | 24.7 | |||||||
Used vehicle retail sales | 1,006,203 | 871,208 | 15.5 | |||||||||
Used vehicle wholesale sales | 157,867 | 139,991 | 12.8 | |||||||||
Parts and service | 498,460 | 433,414 | 15.0 | |||||||||
Finance and insurance | 149,958 | 122,653 | 22.3 | |||||||||
Total revenues | 4,298,942 | 3,560,571 | 20.7 | |||||||||
COST OF SALES: | ||||||||||||
New vehicle retail sales | 2,343,453 | 1,876,643 | 24.9 | |||||||||
Used vehicle retail sales | 922,422 | 795,965 | 15.9 | |||||||||
Used vehicle wholesale sales | 154,933 | 136,964 | 13.1 | |||||||||
Parts and service | 236,371 | 205,231 | 15.2 | |||||||||
Total cost of sales | 3,657,179 | 3,014,803 | 21.3 | |||||||||
GROSS PROFIT | 641,763 | 545,768 | 17.6 | |||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 484,592 | 413,439 | 17.2 | |||||||||
DEPRECIATION AND AMORTIZATION EXPENSE | 17,297 | 14,978 | 15.5 | |||||||||
ASSET IMPAIRMENTS | 609 | 288 | 111.5 | |||||||||
OPERATING INCOME | 139,265 | 117,063 | 19.0 | |||||||||
OTHER EXPENSE: | ||||||||||||
Floorplan interest expense | (20,237 | ) | (15,482 | ) | 30.7 | |||||||
Other interest expense, net | (18,812 | ) | (18,230 | ) | 3.2 | |||||||
Other expense, net | (789 | ) | — | 100.0 | ||||||||
INCOME BEFORE INCOME TAXES | 99,427 | 83,351 | 19.3 | |||||||||
PROVISION FOR INCOME TAXES | (39,921 | ) | (31,609 | ) | 26.3 | |||||||
NET INCOME | $ | 59,506 | $ | 51,742 | 15.0 | |||||||
DILUTED INCOME PER SHARE | $ | 2.32 | $ | 2.18 | 6.4 | |||||||
Weighted average dilutive common shares outstanding | 24,544 | 22,522 | 9.0 | |||||||||
Weighted average participating securities | 1,093 | 1,263 | (13.5 | ) | ||||||||
Total weighted average shares outstanding | 25,637 | 23,785 | 7.8 |
Group 1 Automotive, Inc. | ||||||||||||
Consolidated Balance Sheets | ||||||||||||
(Dollars in thousands) | ||||||||||||
June 30, | December 31, | |||||||||||
2013 | 2012 | % Change | ||||||||||
(Unaudited) | ||||||||||||
ASSETS: | ||||||||||||
CURRENT ASSETS: | ||||||||||||
Cash and cash equivalents | $ | 10,852 | $ | 4,650 | 133.4 | |||||||
Contracts in transit and vehicle receivables, net | 185,626 | 204,396 | (9.2 | ) | ||||||||
Accounts and notes receivable, net | 132,513 | 111,228 | 19.1 | |||||||||
Inventories, net | 1,358,294 | 1,194,288 | 13.7 | |||||||||
Deferred income taxes | 22,072 | 19,750 | 11.8 | |||||||||
Prepaid expenses and other current assets | 21,443 | 31,869 | (32.7 | ) | ||||||||
Total current assets | 1,730,800 | 1,566,181 | 10.5 | |||||||||
PROPERTY AND EQUIPMENT, net | 706,293 | 667,768 | 5.8 | |||||||||
GOODWILL AND INTANGIBLE FRANCHISE RIGHTS | 955,830 | 778,442 | 22.8 | |||||||||
OTHER ASSETS | 16,395 | 10,624 | 54.3 | |||||||||
Total assets | $ | 3,409,318 | $ | 3,023,015 | 12.8 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY: | ||||||||||||
CURRENT LIABILITIES: | ||||||||||||
Floorplan notes payable - credit facility and other | $ | 1,016,896 | $ | 968,959 | 4.9 | |||||||
Offset account related to floorplan notes payable - credit facility | (81,996 | ) | (112,261 | ) | (27.0 | ) | ||||||
Floorplan notes payable - manufacturer affiliates | 301,670 | 211,965 | 42.3 | |||||||||
Current maturities of long-term debt and short-term financing | 24,338 | 31,358 | (22.4 | ) | ||||||||
Accounts payable | 237,573 | 167,439 | 41.9 | |||||||||
Accrued expenses | 144,361 | 128,118 | 12.7 | |||||||||
Total current liabilities | 1,642,842 | 1,395,578 | 17.7 | |||||||||
2.25% CONVERTIBLE SENIOR NOTES (aggregate principal of $182,753 at June 30, 2013 and December 31, 2012) | 156,272 | 152,363 | 2.6 | |||||||||
3.00% CONVERTIBLE SENIOR NOTES (aggregate principal of $115,000 at June 30, 2013 and December 31, 2012) | 82,468 | 80,706 | 2.2 | |||||||||
MORTGAGE FACILITY, net of current maturities | 46,724 | 53,643 | (12.9 | ) | ||||||||
OTHER REAL ESTATE RELATED AND LONG-TERM DEBT, net of current maturities | 217,971 | 232,285 | (6.2 | ) | ||||||||
CAPITAL LEASE OBLIGATIONS RELATED TO REAL ESTATE, net of current maturities | 38,274 | 36,019 | 6.3 | |||||||||
DEFERRED INCOME TAXES | 130,517 | 94,130 | 38.7 | |||||||||
LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES | 28,116 | 43,089 | (34.7 | ) | ||||||||
OTHER LIABILITIES | 44,810 | 42,413 | 5.7 | |||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
TEMPORARY EQUITY - REDEEMABLE EQUITY PORTION OF THE 3.00% CONVERTIBLE SENIOR NOTES | 30,835 | 32,505 | (5.1 | ) | ||||||||
STOCKHOLDERS' EQUITY: | ||||||||||||
Common stock | 259 | 258 | 0.4 | |||||||||
Additional paid-in capital | 367,569 | 332,836 | 10.4 | |||||||||
Retained earnings | 729,869 | 677,864 | 7.7 | |||||||||
Accumulated other comprehensive loss | (48,682 | ) | (33,057 | ) | 47.3 | |||||||
Treasury stock | (58,526 | ) | (117,617 | ) | (50.2 | ) | ||||||
Total stockholders' equity | 990,489 | 860,284 | 15.1 | |||||||||
Total liabilities and stockholders' equity | $ | 3,409,318 | $ | 3,023,015 | 12.8 |
Group 1 Automotive, Inc. | ||||||||||||||
Additional Information - Consolidated | ||||||||||||||
(Unaudited) | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2013 (%) | 2012 (%) | 2013 (%) | 2012 (%) | |||||||||||
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX: | ||||||||||||||
Region | Geographic Market | |||||||||||||
East | Massachusetts | 5.8 | 9.7 | 6.2 | 10.2 | |||||||||
New Jersey | 3.9 | 5.1 | 4.3 | 5.1 | ||||||||||
Georgia | 3.4 | 3.4 | 3.8 | 3.4 | ||||||||||
New York | 2.8 | 3.2 | 2.8 | 3.3 | ||||||||||
Louisiana | 2.4 | 2.5 | 2.4 | 2.6 | ||||||||||
New Hampshire | 2.2 | 3.0 | 2.3 | 2.9 | ||||||||||
Mississippi | 1.6 | 2.1 | 1.7 | 2.1 | ||||||||||
South Carolina | 1.4 | 1.9 | 1.5 | 1.8 | ||||||||||
Florida | 1.2 | 1.2 | 1.3 | 1.0 | ||||||||||
Alabama | 0.8 | 1.0 | 0.8 | 1.0 | ||||||||||
Maryland | 0.5 | 0.6 | 0.5 | 0.7 | ||||||||||
26.0 | 33.7 | 27.6 | 34.1 | |||||||||||
West | Texas | 31.2 | 36.0 | 32.6 | 36.8 | |||||||||
California | 10.7 | 14.4 | 11.9 | 14.5 | ||||||||||
Oklahoma | 7.9 | 7.8 | 7.7 | 7.8 | ||||||||||
Kansas | 2.6 | 1.6 | 2.5 | 1.4 | ||||||||||
52.4 | 59.8 | 54.7 | 60.5 | |||||||||||
International | Brazil | 12.9 | — | 9.1 | — | |||||||||
United Kingdom | 8.7 | 6.5 | 8.6 | 5.4 | ||||||||||
100.0 | 100.0 | 100.0 | 100.0 | |||||||||||
NEW VEHICLE UNIT SALES BRAND MIX: | ||||||||||||||
Toyota/Scion/Lexus | 26.5 | 31.2 | 27.0 | 30.9 | ||||||||||
Honda/Acura | 12.6 | 11.4 | 12.5 | 11.2 | ||||||||||
Ford/Lincoln | 11.4 | 8.8 | 11.5 | 9.5 | ||||||||||
BMW/MINI | 10.8 | 11.3 | 10.5 | 11.0 | ||||||||||
Nissan/Infiniti | 10.4 | 10.8 | 10.5 | 11.8 | ||||||||||
Volkswagen/Audi/Porsche | 6.3 | 6.6 | 6.5 | 5.4 | ||||||||||
Hyundai/Kia | 4.6 | 3.1 | 4.5 | 2.9 | ||||||||||
Chevrolet/GMC/Buick/Cadillac | 4.4 | 5.8 | 4.8 | 6.0 | ||||||||||
Mercedes Benz/smart/Sprinter | 4.2 | 4.8 | 4.4 | 4.7 | ||||||||||
Chrysler/Dodge/Jeep/RAM | 3.9 | 4.4 | 4.1 | 4.4 | ||||||||||
Other | 4.9 | 1.8 | 3.7 | 2.2 | ||||||||||
100.0 | 100.0 | 100.0 | 100.0 |
Group 1 Automotive, Inc. | ||||||||||||
Additional Information - U.S. | ||||||||||||
(Unaudited) | ||||||||||||
(Dollars in thousands, except per unit amounts) | ||||||||||||
Three Months Ended June 30, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 1,078,607 | $ | 1,003,570 | 7.5 | |||||||
Used vehicle retail sales | 448,574 | 420,735 | 6.6 | |||||||||
Used vehicle wholesale sales | 56,725 | 60,614 | (6.4 | ) | ||||||||
Total used | 505,299 | 481,349 | 5.0 | |||||||||
Parts and service | 224,084 | 209,295 | 7.1 | |||||||||
Finance and insurance | 73,664 | 63,420 | 16.2 | |||||||||
Total | $ | 1,881,654 | $ | 1,757,634 | 7.1 | |||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 5.4 | 5.8 | ||||||||||
Used vehicle retail sales | 8.5 | 8.6 | ||||||||||
Used vehicle wholesale sales | 0.4 | 1.0 | ||||||||||
Total used | 7.6 | 7.7 | ||||||||||
Parts and service | 53.5 | 53.0 | ||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||
Total | 15.4 | 15.3 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 58,325 | $ | 58,334 | — | |||||||
Used vehicle retail sales | 38,341 | 36,225 | 5.8 | |||||||||
Used vehicle wholesale sales | 248 | 614 | (59.6 | ) | ||||||||
Total used | 38,589 | 36,839 | 4.8 | |||||||||
Parts and service | 119,898 | 110,974 | 8.0 | |||||||||
Finance and insurance | 73,664 | 63,420 | 16.2 | |||||||||
Total | $ | 290,476 | $ | 269,567 | 7.8 | |||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 32,589 | 30,780 | 5.9 | |||||||||
Retail used vehicles sold | 21,928 | 20,763 | 5.6 | |||||||||
Wholesale used vehicles sold | 9,940 | 10,005 | (0.6 | ) | ||||||||
Total used | 31,868 | 30,768 | 3.6 | |||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 33,097 | $ | 32,605 | 1.5 | |||||||
Used vehicle retail | $ | 20,457 | $ | 20,264 | 1.0 | |||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 1,790 | $ | 1,895 | (5.5 | ) | ||||||
Used vehicle retail sales | 1,748 | 1,745 | 0.2 | |||||||||
Used vehicle wholesale sales | 25 | 61 | (59.0 | ) | ||||||||
Total used | 1,211 | 1,197 | 1.2 | |||||||||
Finance and insurance (per retail unit) | $ | 1,351 | $ | 1,230 | 9.8 | |||||||
OTHER: (1) | ||||||||||||
SG&A expenses | $ | 207,977 | $ | 199,737 | 4.1 | |||||||
SG&A as % revenues | 11.1 | 11.4 | ||||||||||
SG&A as % gross profit | 71.6 | 74.1 | ||||||||||
Operating margin % | 4.0 | 3.6 | ||||||||||
Pretax margin % | 3.0 | 2.6 | ||||||||||
INTEREST EXPENSE: | ||||||||||||
Floorplan interest | $ | 8,645 | $ | 7,546 | 14.6 | |||||||
Floorplan assistance | (10,010 | ) | (8,658 | ) | 15.6 | |||||||
Net floorplan income | $ | 1,365 | $ | 1,112 | 22.8 | |||||||
Other interest expense, net | $ | 9,301 | $ | 9,070 | 2.5 |
Six Months Ended June 30, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 2,041,239 | $ | 1,876,559 | 8.8 | |||||||
Used vehicle retail sales | 866,913 | 813,008 | 6.6 | |||||||||
Used vehicle wholesale sales | 114,394 | 120,032 | (4.7 | ) | ||||||||
Total used | 981,307 | 933,040 | 5.2 | |||||||||
Parts and service | 440,438 | 414,680 | 6.2 | |||||||||
Finance and insurance | 140,456 | 119,574 | 17.5 | |||||||||
Total | $ | 3,603,440 | $ | 3,343,853 | 7.8 | |||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 5.4 | 5.8 | ||||||||||
Used vehicle retail sales | 8.8 | 8.8 | ||||||||||
Used vehicle wholesale sales | 2.1 | 2.7 | ||||||||||
Total used | 8.0 | 8.0 | ||||||||||
Parts and service | 53.3 | 52.6 | ||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||
Total | 15.6 | 15.6 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 109,907 | $ | 108,100 | 1.7 | |||||||
Used vehicle retail sales | 75,960 | 71,562 | 6.1 | |||||||||
Used vehicle wholesale sales | 2,373 | 3,214 | (26.2 | ) | ||||||||
Total used | 78,333 | 74,776 | 4.8 | |||||||||
Parts and service | 234,721 | 218,035 | 7.7 | |||||||||
Finance and insurance | 140,457 | 119,573 | 17.5 | |||||||||
Total | $ | 563,418 | $ | 520,484 | 8.2 | |||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 61,367 | 57,563 | 6.6 | |||||||||
Retail used vehicles sold | 43,044 | 40,658 | 5.9 | |||||||||
Wholesale used vehicles sold | 19,597 | 19,309 | 1.5 | |||||||||
Total used | 62,641 | 59,967 | 4.5 | |||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 33,263 | $ | 32,600 | 2.0 | |||||||
Used vehicle retail | $ | 20,140 | $ | 19,996 | 0.7 | |||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 1,791 | $ | 1,878 | (4.6 | ) | ||||||
Used vehicle retail sales | 1,765 | 1,760 | 0.3 | |||||||||
Used vehicle wholesale sales | 121 | 166 | (27.1 | ) | ||||||||
Total used | 1,251 | 1,247 | 0.3 | |||||||||
Finance and insurance (per retail unit) | $ | 1,345 | $ | 1,217 | 10.5 | |||||||
OTHER: (1) | ||||||||||||
SG&A expenses | $ | 412,068 | $ | 391,314 | 5.3 | |||||||
SG&A as % revenues | 11.4 | 11.7 | ||||||||||
SG&A as % gross profit | 73.1 | 75.2 | ||||||||||
Operating margin % | 3.8 | 3.4 | ||||||||||
Pretax margin % | 2.8 | 2.5 | ||||||||||
INTEREST EXPENSE: | ||||||||||||
Floorplan interest | $ | 16,941 | $ | 15,028 | 12.7 | |||||||
Floorplan assistance | (18,183 | ) | (16,072 | ) | 13.1 | |||||||
Net floorplan income | $ | 1,242 | $ | 1,044 | 19.0 | |||||||
Other interest expense, net | $ | 18,341 | $ | 17,989 | 2.0 |
Group 1 Automotive, Inc. | ||||||||||||
Additional Information - U.K. | ||||||||||||
(Unaudited) | ||||||||||||
(Dollars in thousands, except per unit amounts) | ||||||||||||
Three Months Ended June 30, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 110,473 | $ | 77,139 | 43.2 | |||||||
Used vehicle retail sales | 58,429 | 35,499 | 64.6 | |||||||||
Used vehicle wholesale sales | 17,958 | 12,520 | 43.4 | |||||||||
Total used | 76,387 | 48,019 | 59.1 | |||||||||
Parts and service | 17,024 | 11,018 | 54.5 | |||||||||
Finance and insurance | 3,552 | 2,016 | 76.2 | |||||||||
Total | $ | 207,436 | $ | 138,192 | 50.1 | |||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 6.5 | 7.1 | ||||||||||
Used vehicle retail sales | 6.9 | 7.4 | ||||||||||
Used vehicle wholesale sales | (3.4 | ) | (2.3 | ) | ||||||||
Total used | 4.5 | 4.9 | ||||||||||
Parts and service | 56.4 | 53.8 | ||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||
Total | 11.4 | 11.4 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 7,161 | $ | 5,506 | 30.1 | |||||||
Used vehicle retail sales | 4,052 | 2,621 | 54.6 | |||||||||
Used vehicle wholesale sales | (614 | ) | (292 | ) | 110.3 | |||||||
Total used | 3,438 | 2,329 | 47.6 | |||||||||
Parts and service | 9,594 | 5,924 | 62.0 | |||||||||
Finance and insurance | 3,551 | 2,017 | 76.1 | |||||||||
Total | $ | 23,744 | $ | 15,776 | 50.5 | |||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 3,605 | 2,144 | 68.1 | |||||||||
Retail used vehicles sold | 2,524 | 1,241 | 103.4 | |||||||||
Wholesale used vehicles sold | 2,251 | 1,239 | 81.7 | |||||||||
Total used | 4,775 | 2,480 | 92.5 | |||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 30,644 | $ | 35,979 | (14.8 | ) | ||||||
Used vehicle retail | $ | 23,149 | $ | 28,605 | (19.1 | ) | ||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 1,986 | $ | 2,568 | (22.7 | ) | ||||||
Used vehicle retail sales | 1,605 | 2,112 | (24.0 | ) | ||||||||
Used vehicle wholesale sales | (273 | ) | (236 | ) | 15.7 | |||||||
Total used | 720 | 939 | (23.3 | ) | ||||||||
Finance and insurance (per retail unit) | $ | 579 | $ | 596 | (2.9 | ) | ||||||
OTHER: | ||||||||||||
SG&A expenses | $ | 18,570 | $ | 13,011 | 42.7 | |||||||
SG&A as % revenues | 9.0 | 9.4 | ||||||||||
SG&A as % gross profit | 78.2 | 82.5 | ||||||||||
Operating margin % | 2.2 | 1.6 | ||||||||||
Pretax margin % | 1.8 | 1.3 | ||||||||||
INTEREST EXPENSE: | ||||||||||||
Floorplan interest | $ | 421 | $ | 317 | 32.8 | |||||||
Floorplan assistance | — | — | — | |||||||||
Net floorplan expense | $ | 421 | $ | 317 | 32.8 | |||||||
Other interest expense, net | $ | 293 | $ | 120 | 144.2 |
Six Months Ended June 30, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 205,298 | $ | 116,746 | 75.9 | |||||||
Used vehicle retail sales | 103,394 | 58,200 | 77.7 | |||||||||
Used vehicle wholesale sales | 31,722 | 19,958 | 58.9 | |||||||||
Total used | 135,116 | 78,158 | 72.9 | |||||||||
Parts and service | 31,795 | 18,734 | 69.7 | |||||||||
Finance and insurance | 6,305 | 3,079 | 104.8 | |||||||||
Total | $ | 378,514 | $ | 216,717 | 74.7 | |||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 6.7 | 7.3 | ||||||||||
Used vehicle retail sales | 6.1 | 6.3 | ||||||||||
Used vehicle wholesale sales | (1.7 | ) | (0.9 | ) | ||||||||
Total used | 4.2 | 4.5 | ||||||||||
Parts and service | 53.7 | 54.2 | ||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||
Total | 11.3 | 11.7 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 13,793 | $ | 8,562 | 61.1 | |||||||
Used vehicle retail sales | 6,270 | 3,682 | 70.3 | |||||||||
Used vehicle wholesale sales | (530 | ) | (188 | ) | 181.9 | |||||||
Total used | 5,740 | 3,494 | 64.3 | |||||||||
Parts and service | 17,078 | 10,149 | 68.3 | |||||||||
Finance and insurance | 6,304 | 3,078 | 104.8 | |||||||||
Total | $ | 42,915 | $ | 25,283 | 69.7 | |||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 6,432 | 3,291 | 95.4 | |||||||||
Retail used vehicles sold | 4,252 | 2,095 | 103.0 | |||||||||
Wholesale used vehicles sold | 3,694 | 1,929 | 91.5 | |||||||||
Total used | 7,946 | 4,024 | 97.5 | |||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 31,918 | $ | 35,474 | (10.0 | ) | ||||||
Used vehicle retail | $ | 24,317 | $ | 27,780 | (12.5 | ) | ||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 2,144 | $ | 2,602 | (17.6 | ) | ||||||
Used vehicle retail sales | 1,475 | 1,758 | (16.1 | ) | ||||||||
Used vehicle wholesale sales | (143 | ) | (97 | ) | 47.4 | |||||||
Total used | 722 | 868 | (16.8 | ) | ||||||||
Finance and insurance (per retail unit) | $ | 590 | $ | 571 | 3.3 | |||||||
OTHER: (1) | ||||||||||||
SG&A expenses | $ | 34,464 | $ | 20,546 | 67.7 | |||||||
SG&A as % revenues | 9.1 | 9.5 | ||||||||||
SG&A as % gross profit | 80.3 | 81.3 | ||||||||||
Operating margin % | 1.9 | 1.7 | ||||||||||
Pretax margin % | 1.6 | 1.4 | ||||||||||
INTEREST EXPENSE: | ||||||||||||
Floorplan interest | $ | 727 | $ | 454 | 60.1 | |||||||
Floorplan assistance | — | — | — | |||||||||
Net floorplan expense | $ | 727 | $ | 454 | 60.1 | |||||||
Other interest expense, net | $ | 507 | $ | 241 | 110.4 |
Group 1 Automotive, Inc. | |||||
Additional Information - Brazil | |||||
(Unaudited) | |||||
(Dollars in thousands, except per unit amounts) | |||||
Three Months Ended June 30, 2013 | |||||
REVENUES: | |||||
New vehicle retail sales | $ | 187,139 | |||
Used vehicle retail sales | 27,802 | ||||
Used vehicle wholesale sales | 8,633 | ||||
Total used | 36,435 | ||||
Parts and service | 19,841 | ||||
Finance and insurance | 2,605 | ||||
Total | $ | 246,020 | |||
GROSS MARGIN %: | |||||
New vehicle retail sales | 8.0 | ||||
Used vehicle retail sales | 4.0 | ||||
Used vehicle wholesale sales | 10.2 | ||||
Total used | 5.5 | ||||
Parts and service | 38.2 | ||||
Finance and insurance | 100.0 | ||||
Total | 11.0 | ||||
GROSS PROFIT: | |||||
New vehicle retail sales | $ | 14,879 | |||
Used vehicle retail sales | 1,113 | ||||
Used vehicle wholesale sales | 878 | ||||
Total used | 1,991 | ||||
Parts and service | 7,579 | ||||
Finance and insurance | 2,605 | ||||
Total | $ | 27,054 | |||
UNITS SOLD: | |||||
Retail new vehicles sold | 5,337 | ||||
Retail used vehicles sold | 1,182 | ||||
Wholesale used vehicles sold | 881 | ||||
Total used | 2,063 | ||||
AVERAGE RETAIL SALES PRICE: | |||||
New vehicle retail | $ | 35,064 | |||
Used vehicle retail | $ | 23,521 | |||
GROSS PROFIT PER UNIT SOLD: | |||||
New vehicle retail sales | $ | 2,788 | |||
Used vehicle retail sales | 942 | ||||
Used vehicle wholesale sales | 997 | ||||
Total used | 965 | ||||
Finance and insurance (per retail unit) | $ | 400 | |||
OTHER: | |||||
SG&A expenses | $ | 21,769 | |||
SG&A as % revenues | 8.8 | ||||
SG&A as % gross profit | 80.5 | ||||
Operating margin % | 2.0 | ||||
Pretax margin % | 1.3 | ||||
INTEREST EXPENSE: | |||||
Floorplan interest | $ | 1,807 | |||
Floorplan assistance | — | ||||
Net floorplan expense | $ | 1,807 |
Six Months Ended | |||||
June 30, 2013 (2) | |||||
REVENUES: | |||||
New vehicle retail sales | $ | 239,917 | |||
Used vehicle retail sales | 35,897 | ||||
Used vehicle wholesale sales | 11,750 | ||||
Total used | 47,647 | ||||
Parts and service | 26,227 | ||||
Finance and insurance | 3,197 | ||||
Total | $ | 316,988 | |||
GROSS MARGIN %: | |||||
New vehicle retail sales | 8.0 | ||||
Used vehicle retail sales | 4.3 | ||||
Used vehicle wholesale sales | 9.3 | ||||
Total used | 5.5 | ||||
Parts and service | 39.2 | ||||
Finance and insurance | 100.0 | ||||
Total | 11.2 | ||||
GROSS PROFIT: | |||||
New vehicle retail sales | $ | 19,301 | |||
Used vehicle retail sales | 1,552 | ||||
Used vehicle wholesale sales | 1,090 | ||||
Total used | 2,642 | ||||
Parts and service | 10,290 | ||||
Finance and insurance | 3,197 | ||||
Total | $ | 35,430 | |||
UNITS SOLD: | |||||
Retail new vehicles sold | 6,828 | ||||
Retail used vehicles sold | 1,576 | ||||
Wholesale used vehicles sold | 1,116 | ||||
Total used | 2,692 | ||||
AVERAGE RETAIL SALES PRICE: | |||||
New vehicle retail | $ | 35,137 | |||
Used vehicle retail | $ | 22,777 | |||
GROSS PROFIT PER UNIT SOLD: | |||||
New vehicle retail sales | $ | 2,827 | |||
Used vehicle retail sales | 985 | ||||
Used vehicle wholesale sales | 977 | ||||
Total used | 981 | ||||
Finance and insurance (per retail unit) | $ | 380 | |||
OTHER: (1) | |||||
SG&A expenses | $ | 28,471 | |||
SG&A as % revenues | 9.0 | ||||
SG&A as % gross profit | 80.4 | ||||
Operating margin % | 2.0 | ||||
Pretax margin % | 1.2 | ||||
INTEREST EXPENSE: | |||||
Floorplan interest | $ | 2,569 | |||
Floorplan assistance | — | ||||
Net floorplan expense | $ | 2,569 |
Group 1 Automotive, Inc. | ||||||||||||
Additional Information - Consolidated | ||||||||||||
(Unaudited) | ||||||||||||
(Dollars in thousands, except per unit amounts) | ||||||||||||
Three Months Ended June 30, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 1,376,219 | $ | 1,080,710 | 27.3 | |||||||
Used vehicle retail sales | 534,804 | 456,234 | 17.2 | |||||||||
Used vehicle wholesale sales | 83,316 | 73,134 | 13.9 | |||||||||
Total used | 618,120 | 529,368 | 16.8 | |||||||||
Parts and service | 260,950 | 220,313 | 18.4 | |||||||||
Finance and insurance | 79,821 | 65,435 | 22.0 | |||||||||
Total | $ | 2,335,110 | $ | 1,895,826 | 23.2 | |||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 5.8 | 5.9 | ||||||||||
Used vehicle retail sales | 8.1 | 8.5 | ||||||||||
Used vehicle wholesale sales | 0.6 | 0.4 | ||||||||||
Total used | 7.1 | 7.4 | ||||||||||
Parts and service | 52.5 | 53.1 | ||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||
Total | 14.6 | 15.1 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 80,365 | $ | 63,842 | 25.9 | |||||||
Used vehicle retail sales | 43,505 | 38,846 | 12.0 | |||||||||
Used vehicle wholesale sales | 512 | 323 | 58.5 | |||||||||
Total used | 44,017 | 39,169 | 12.4 | |||||||||
Parts and service | 137,071 | 116,898 | 17.3 | |||||||||
Finance and insurance | 79,821 | 65,435 | 22.0 | |||||||||
Total | $ | 341,274 | $ | 285,344 | 19.6 | |||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 41,531 | 32,924 | 26.1 | |||||||||
Retail used vehicles sold | 25,634 | 22,004 | 16.5 | |||||||||
Wholesale used vehicles sold | 13,072 | 11,244 | 16.3 | |||||||||
Total used | 38,706 | 33,248 | 16.4 | |||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 33,137 | $ | 32,824 | 1.0 | |||||||
Used vehicle retail | $ | 20,863 | $ | 20,734 | 0.6 | |||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 1,935 | $ | 1,939 | (0.2 | ) | ||||||
Used vehicle retail sales | 1,697 | 1,765 | (3.9 | ) | ||||||||
Used vehicle wholesale sales | 39 | 29 | 34.5 | |||||||||
Total used | 1,137 | 1,178 | (3.5 | ) | ||||||||
Finance and insurance (per retail unit) | $ | 1,188 | $ | 1,191 | (0.3 | ) | ||||||
OTHER: (1) | ||||||||||||
SG&A expenses | $ | 248,316 | $ | 212,748 | 16.7 | |||||||
SG&A as % revenues | 10.6 | 11.2 | ||||||||||
SG&A as % gross profit | 72.8 | 74.6 | ||||||||||
Operating margin % | 3.6 | 3.4 | ||||||||||
Pretax margin % | 2.7 | 2.5 | ||||||||||
INTEREST EXPENSE: | ||||||||||||
Floorplan interest | $ | 10,873 | $ | 7,863 | 38.3 | |||||||
Floorplan assistance | (10,010 | ) | (8,658 | ) | 15.6 | |||||||
Net floorplan income (expense) | $ | (863 | ) | $ | 795 | (208.6 | ) | |||||
Other interest expense, net | $ | 9,570 | $ | 9,190 | 4.1 |
Six Months Ended June 30, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 2,486,454 | $ | 1,993,305 | 24.7 | |||||||
Used vehicle retail sales | 1,006,203 | 871,208 | 15.5 | |||||||||
Used vehicle wholesale sales | 157,867 | 139,991 | 12.8 | |||||||||
Total used | 1,164,070 | 1,011,199 | 15.1 | |||||||||
Parts and service | 498,460 | 433,414 | 15.0 | |||||||||
Finance and insurance | 149,958 | 122,653 | 22.3 | |||||||||
Total | $ | 4,298,942 | $ | 3,560,571 | 20.7 | |||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 5.8 | 5.9 | ||||||||||
Used vehicle retail sales | 8.3 | 8.6 | ||||||||||
Used vehicle wholesale sales | 1.9 | 2.2 | ||||||||||
Total used | 7.4 | 7.7 | ||||||||||
Parts and service | 52.6 | 52.6 | ||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||
Total | 14.9 | 15.3 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 143,000 | $ | 116,662 | 22.6 | |||||||
Used vehicle retail sales | 83,781 | 75,243 | 11.3 | |||||||||
Used vehicle wholesale sales | 2,934 | 3,027 | (3.1 | ) | ||||||||
Total used | 86,715 | 78,270 | 10.8 | |||||||||
Parts and service | 262,089 | 228,183 | 14.9 | |||||||||
Finance and insurance | 149,959 | 122,653 | 22.3 | |||||||||
Total | $ | 641,763 | $ | 545,768 | 17.6 | |||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 74,627 | 60,854 | 22.6 | |||||||||
Retail used vehicles sold | 48,872 | 42,753 | 14.3 | |||||||||
Wholesale used vehicles sold | 24,407 | 21,238 | 14.9 | |||||||||
Total used | 73,279 | 63,991 | 14.5 | |||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 33,318 | $ | 32,756 | 1.7 | |||||||
Used vehicle retail | $ | 20,589 | $ | 20,378 | 1.0 | |||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 1,916 | $ | 1,917 | (0.1 | ) | ||||||
Used vehicle retail sales | 1,714 | 1,760 | (2.6 | ) | ||||||||
Used vehicle wholesale sales | 120 | 143 | (16.1 | ) | ||||||||
Total used | 1,183 | 1,223 | (3.3 | ) | ||||||||
Finance and insurance (per retail unit) | $ | 1,214 | $ | 1,184 | 2.5 | |||||||
OTHER: (1) | ||||||||||||
SG&A expenses | $ | 475,003 | $ | 411,860 | 15.3 | |||||||
SG&A as % revenues | 11.0 | 11.6 | ||||||||||
SG&A as % gross profit | 74.0 | 75.5 | ||||||||||
Operating margin % | 3.5 | 3.3 | ||||||||||
Pretax margin % | 2.6 | 2.4 | ||||||||||
INTEREST EXPENSE: | ||||||||||||
Floorplan interest | $ | 20,237 | $ | 15,482 | 30.7 | |||||||
Floorplan assistance | (18,183 | ) | (16,072 | ) | 13.1 | |||||||
Net floorplan income (expense) | $ | (2,054 | ) | $ | 590 | (448.1 | ) | |||||
Other interest expense, net | $ | 18,812 | $ | 18,230 | 3.2 |
Group 1 Automotive, Inc. | ||||||||||||
Additional Information - Same Store(1) | ||||||||||||
(Unaudited) | ||||||||||||
(Dollars in thousands, except per unit amounts) | ||||||||||||
Three Months Ended June 30, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 1,117,203 | $ | 1,047,135 | 6.7 | |||||||
Used vehicle retail sales | 466,996 | 441,638 | 5.7 | |||||||||
Used vehicle wholesale sales | 67,987 | 70,140 | (3.1 | ) | ||||||||
Total used | 534,983 | 511,778 | 4.5 | |||||||||
Parts and service | 231,110 | 212,324 | 8.8 | |||||||||
Finance and insurance | 73,646 | 63,851 | 15.3 | |||||||||
Total | $ | 1,956,942 | $ | 1,835,088 | 6.6 | |||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 5.5 | 5.9 | ||||||||||
Used vehicle retail sales | 8.4 | 8.6 | ||||||||||
Used vehicle wholesale sales | 0.4 | 0.6 | ||||||||||
Total used | 7.4 | 7.5 | ||||||||||
Parts and service | 53.5 | 53.0 | ||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||
Total | 15.3 | 15.1 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 61,974 | $ | 62,216 | (0.4 | ) | ||||||
Used vehicle retail sales | 39,150 | 37,783 | 3.6 | |||||||||
Used vehicle wholesale sales | 241 | 403 | (40.2 | ) | ||||||||
Total used | 39,391 | 38,186 | 3.2 | |||||||||
Parts and service | 123,578 | 112,529 | 9.8 | |||||||||
Finance and insurance | 73,646 | 63,851 | 15.3 | |||||||||
Total | $ | 298,589 | $ | 276,782 | 7.9 | |||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 33,345 | 31,715 | 5.1 | |||||||||
Retail used vehicles sold | 22,106 | 21,209 | 4.2 | |||||||||
Wholesale used vehicles sold | 10,786 | 10,662 | 1.2 | |||||||||
Total used | 32,892 | 31,871 | 3.2 | |||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 33,504 | $ | 33,017 | 1.5 | |||||||
Used vehicle retail | $ | 21,125 | $ | 20,823 | 1.5 | |||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 1,859 | $ | 1,962 | (5.2 | ) | ||||||
Used vehicle retail sales | 1,771 | 1,781 | (0.6 | ) | ||||||||
Used vehicle wholesale sales | 22 | 38 | (42.1 | ) | ||||||||
Total used | 1,198 | 1,198 | — | |||||||||
Finance and insurance (per retail unit) | $ | 1,328 | $ | 1,206 | 10.1 | |||||||
OTHER: (2) | ||||||||||||
SG&A expenses | $ | 212,448 | $ | 204,004 | 4.1 | |||||||
SG&A as % revenues | 10.9 | 11.1 | ||||||||||
SG&A as % gross profit | 71.2 | 73.7 | ||||||||||
Operating margin % | 4.0 | 3.6 |
Six Months Ended June 30, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 2,084,535 | $ | 1,936,297 | 7.7 | |||||||
Used vehicle retail sales | 887,462 | 846,603 | 4.8 | |||||||||
Used vehicle wholesale sales | 130,143 | 134,530 | (3.3 | ) | ||||||||
Total used | 1,017,605 | 981,133 | 3.7 | |||||||||
Parts and service | 450,751 | 420,751 | 7.1 | |||||||||
Finance and insurance | 139,109 | 119,940 | 16.0 | |||||||||
Total | $ | 3,692,000 | $ | 3,458,121 | 6.8 | |||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 5.5 | 5.9 | ||||||||||
Used vehicle retail sales | 8.5 | 8.7 | ||||||||||
Used vehicle wholesale sales | 1.9 | 2.3 | ||||||||||
Total used | 7.7 | 7.8 | ||||||||||
Parts and service | 53.1 | 52.6 | ||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||
Total | 15.5 | 15.4 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 114,256 | $ | 113,779 | 0.4 | |||||||
Used vehicle retail sales | 75,442 | 73,396 | 2.8 | |||||||||
Used vehicle wholesale sales | 2,415 | 3,069 | (21.3 | ) | ||||||||
Total used | 77,857 | 76,465 | 1.8 | |||||||||
Parts and service | 239,569 | 221,325 | 8.2 | |||||||||
Finance and insurance | 139,109 | 119,940 | 16.0 | |||||||||
Total | $ | 570,791 | $ | 531,509 | 7.4 | |||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 61,980 | 58,791 | 5.4 | |||||||||
Retail used vehicles sold | 42,776 | 41,402 | 3.3 | |||||||||
Wholesale used vehicles sold | 20,539 | 20,180 | 1.8 | |||||||||
Total used | 63,315 | 61,582 | 2.8 | |||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 33,632 | $ | 32,935 | 2.1 | |||||||
Used vehicle retail | $ | 20,747 | $ | 20,448 | 1.5 | |||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 1,843 | $ | 1,935 | (4.8 | ) | ||||||
Used vehicle retail sales | 1,764 | 1,773 | (0.5 | ) | ||||||||
Used vehicle wholesale sales | 118 | 152 | (22.4 | ) | ||||||||
Total used | 1,230 | 1,242 | (1.0 | ) | ||||||||
Finance and insurance (per retail unit) | $ | 1,328 | $ | 1,197 | 10.9 | |||||||
OTHER: (2) | ||||||||||||
SG&A expenses | $ | 415,849 | $ | 397,500 | 4.6 | |||||||
SG&A as % revenues | 11.3 | 11.5 | ||||||||||
SG&A as % gross profit | 72.9 | 74.8 | ||||||||||
Operating margin % | 3.8 | 3.4 |
Group 1 Automotive, Inc. | |||||||||||
Reconciliation of Certain Non-GAAP Financial Measures - U.S. | |||||||||||
(Unaudited) | |||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||
Three Months Ended June 30, | |||||||||||
2013 | 2012 | % Change | |||||||||
SG&A RECONCILIATION: | |||||||||||
As reported | $ | 210,820 | $ | 201,316 | 4.7 | ||||||
Pre-tax adjustments: | |||||||||||
Catastrophic events | (11,092 | ) | (2,650 | ) | |||||||
Net gain on dealership dispositions | 8,449 | — | |||||||||
Net gain on real estate transactions | — | 1,071 | |||||||||
Lease termination | (200 | ) | — | ||||||||
Adjusted SG&A (1) | $ | 207,977 | $ | 199,737 | 4.1 | ||||||
SG&A AS % REVENUES: | |||||||||||
Unadjusted | 11.2 | 11.5 | |||||||||
Adjusted (1) | 11.1 | 11.4 | |||||||||
SG&A AS % GROSS PROFIT: | |||||||||||
Unadjusted | 72.6 | 74.7 | |||||||||
Adjusted (1) | 71.6 | 74.1 | |||||||||
OPERATING MARGIN %: | |||||||||||
Unadjusted | 3.8 | 3.5 | |||||||||
Adjusted (1),(2) | 4.0 | 3.6 | |||||||||
PRETAX MARGIN %: | |||||||||||
Unadjusted | 2.8 | 2.5 | |||||||||
Adjusted (1),(2) | 3.0 | 2.6 |
Six Months Ended June 30, | |||||||||||
2013 | 2012 | % Change | |||||||||
SG&A RECONCILIATION: | |||||||||||
As reported | $ | 420,304 | $ | 392,893 | 7.0 | ||||||
Pre-tax adjustments: | |||||||||||
Acquisition costs | (5,159 | ) | — | ||||||||
Catastrophic events | (11,900 | ) | (2,650 | ) | |||||||
Net gain on dealership dispositions | 9,023 | — | |||||||||
Net gain on real estate transactions | — | 1,071 | |||||||||
Lease termination | (200 | ) | — | ||||||||
Adjusted SG&A (1) | $ | 412,068 | $ | 391,314 | 5.3 | ||||||
SG&A AS % REVENUES: | |||||||||||
Unadjusted | 11.7 | 11.7 | |||||||||
Adjusted (1) | 11.4 | 11.7 | |||||||||
SG&A AS % GROSS PROFIT: | |||||||||||
Unadjusted | 74.6 | 75.5 | |||||||||
Adjusted (1) | 73.1 | 75.2 | |||||||||
OPERATING MARGIN %: | |||||||||||
Unadjusted | 3.5 | 3.4 | |||||||||
Adjusted (1),(2) | 3.8 | 3.4 | |||||||||
PRETAX MARGIN %: | |||||||||||
Unadjusted | 2.5 | 2.4 | |||||||||
Adjusted (1),(2) | 2.8 | 2.5 |
Group 1 Automotive, Inc. | |||||||||||
Reconciliation of Certain Non-GAAP Financial Measures - U.K. | |||||||||||
(Unaudited) | |||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||
Six Months Ended June 30, | |||||||||||
2013 | 2012 | % Change | |||||||||
SG&A RECONCILIATION: | |||||||||||
As reported | $ | 34,606 | $ | 20,546 | 68.4 | ||||||
Pre-tax adjustments: | |||||||||||
Acquisition costs | (142 | ) | — | ||||||||
Adjusted SG&A (1) | $ | 34,464 | $ | 20,546 | 67.7 | ||||||
SG&A AS % REVENUES: | |||||||||||
Unadjusted | 9.1 | 9.5 | |||||||||
Adjusted (1) | 9.1 | 9.5 | |||||||||
SG&A AS % GROSS PROFIT: | |||||||||||
Unadjusted | 80.6 | 81.3 | |||||||||
Adjusted (1) | 80.3 | 81.3 | |||||||||
OPERATING MARGIN %: | |||||||||||
Unadjusted | 1.9 | 1.7 | |||||||||
Adjusted (1),(2) | 1.9 | 1.7 | |||||||||
PRETAX MARGIN %: | |||||||||||
Unadjusted | 1.5 | 1.4 | |||||||||
Adjusted (1),(2) | 1.6 | 1.4 |
Group 1 Automotive, Inc. | |||||
Reconciliation of Certain Non-GAAP Financial Measures - Brazil | |||||
(Unaudited) | |||||
(Dollars in thousands, except per share amounts) | |||||
Six Months Ended June 30, 2013 (3) | |||||
SG&A RECONCILIATION: | |||||
As reported | $ | 29,682 | |||
Pre-tax adjustments: | |||||
Acquisition costs | (1,211 | ) | |||
Adjusted SG&A (1) | $ | 28,471 | |||
SG&A AS % REVENUES: | |||||
Unadjusted | 9.4 | ||||
Adjusted (1) | 9.0 | ||||
SG&A AS % GROSS PROFIT: | |||||
Unadjusted | 83.8 | ||||
Adjusted (1) | 80.4 | ||||
OPERATING MARGIN %: | |||||
Unadjusted | 1.6 | ||||
Adjusted (1),(2) | 2.0 | ||||
PRETAX MARGIN %: | |||||
Unadjusted | 0.6 | ||||
Adjusted (1),(4) | 1.2 |
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, | |||||||||||
2013 | 2012 | % Change | |||||||||
NET INCOME RECONCILIATION: | |||||||||||
As reported | $ | 37,388 | $ | 28,625 | 30.6 | ||||||
After-tax adjustments: | |||||||||||
Catastrophic events (3) | 6,757 | 1,658 | |||||||||
Net gain on dealership dispositions (4) | (4,909 | ) | — | ||||||||
Net gain on real estate transactions (10) | — | (659 | ) | ||||||||
Lease termination (5) | 124 | — | |||||||||
Non-cash impairment (6) | 369 | 115 | |||||||||
Adjusted net income (1) | $ | 39,729 | $ | 29,739 | 33.6 | ||||||
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION | |||||||||||
Adjusted net income | $ | 39,729 | $ | 29,739 | 33.6 | ||||||
Less: Adjusted earnings allocated to participating securities | 1,692 | 1,637 | 3.4 | ||||||||
Adjusted net income available to diluted common shares | $ | 38,037 | $ | 28,102 | 35.4 | ||||||
DILUTED INCOME PER COMMON SHARE RECONCILIATION: | |||||||||||
As reported | $ | 1.43 | $ | 1.20 | 19.2 | ||||||
After-tax adjustments: | |||||||||||
Catastrophic events | 0.26 | 0.07 | |||||||||
Net gain on dealership dispositions | (0.19 | ) | — | ||||||||
Net gain on real estate transactions | — | (0.03 | ) | ||||||||
Lease termination | 0.01 | — | |||||||||
Non-cash impairment | 0.01 | 0.01 | |||||||||
Adjusted diluted income per share (1) | $ | 1.52 | $ | 1.25 | 21.6 | ||||||
SG&A RECONCILIATION: | |||||||||||
As reported | $ | 251,159 | $ | 214,327 | 17.2 | ||||||
Pre-tax adjustments: | |||||||||||
Catastrophic events | (11,092 | ) | (2,650 | ) | |||||||
Net gain on dealership dispositions | 8,449 | — | |||||||||
Net gain on real estate transactions | — | 1,071 | |||||||||
Lease termination | (200 | ) | — | ||||||||
Adjusted SG&A (1) | $ | 248,316 | $ | 212,748 | 16.7 | ||||||
SG&A AS % REVENUES: | |||||||||||
Unadjusted | 10.8 | 11.3 | |||||||||
Adjusted (1) | 10.6 | 11.2 | |||||||||
SG&A AS % GROSS PROFIT: | |||||||||||
Unadjusted | 73.6 | 75.1 | |||||||||
Adjusted (1) | 72.8 | 74.6 | |||||||||
OPERATING MARGIN %: | |||||||||||
Unadjusted | 3.5 | 3.3 | |||||||||
Adjusted (1),(7) | 3.6 | 3.4 | |||||||||
PRETAX MARGIN %: | |||||||||||
Unadjusted | 2.6 | 2.4 | |||||||||
Adjusted (1),(8) | 2.7 | 2.5 |
SAME STORE SG&A RECONCILIATION: | |||||||||||
As reported | $ | 223,740 | $ | 207,158 | 8.0 | ||||||
Pre-tax adjustments: | |||||||||||
Catastrophic events | (11,092 | ) | (2,650 | ) | |||||||
Net gain on real estate transactions | — | (504 | ) | ||||||||
Lease termination | (200 | ) | — | ||||||||
Adjusted Same Store SG&A (1) | $ | 212,448 | $ | 204,004 | 4.1 | ||||||
SAME STORE SG&A AS % REVENUES: | |||||||||||
Unadjusted | 11.4 | 11.3 | |||||||||
Adjusted (1) | 10.9 | 11.1 | |||||||||
SAME STORE SG&A AS % GROSS PROFIT: | |||||||||||
Unadjusted | 74.9 | 74.8 | |||||||||
Adjusted (1) | 71.2 | 73.7 | |||||||||
SAME STORE OPERATING MARGIN %: | |||||||||||
Unadjusted | 3.4 | 3.4 | |||||||||
Adjusted (1),(9) | 4.0 | 3.6 |
Six Months Ended June 30, | |||||||||||
2013 | 2012 | % Change | |||||||||
NET INCOME RECONCILIATION: | |||||||||||
As reported | $ | 59,506 | $ | 51,742 | 15.0 | ||||||
After-tax adjustments: | |||||||||||
Acquisition costs (2) | 4,639 | — | |||||||||
Catastrophic events (3) | 7,261 | 1,658 | |||||||||
Net gain on dealership dispositions (4) | (5,265 | ) | — | ||||||||
Net gain on real estate transactions (10) | — | (659 | ) | ||||||||
Lease termination (5) | 124 | — | |||||||||
Non-cash impairment (6) | 369 | 115 | |||||||||
Income tax effect of non-deductible acquisition costs | 2,329 | — | |||||||||
Adjusted net income (1) | $ | 68,963 | $ | 52,856 | 30.5 | ||||||
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION | |||||||||||
Adjusted net income | $ | 68,963 | $ | 52,856 | 30.5 | ||||||
Less: Adjusted earnings allocated to participating securities | 2,925 | 2,789 | 4.9 | ||||||||
Adjusted net income available to diluted common shares | $ | 66,038 | $ | 50,067 | 31.9 | ||||||
DILUTED INCOME PER COMMON SHARE RECONCILIATION: | |||||||||||
As reported | $ | 2.32 | $ | 2.18 | 6.4 | ||||||
After-tax adjustments: | |||||||||||
Acquisition costs | 0.18 | — | |||||||||
Catastrophic events | 0.28 | 0.07 | |||||||||
Net gain on dealership dispositions | (0.20 | ) | — | ||||||||
Net gain on real estate transactions | — | (0.03 | ) | ||||||||
Lease termination | 0.01 | — | |||||||||
Non-cash impairment | 0.01 | 0.01 | |||||||||
Income tax effect of non-deductible acquisition costs | 0.09 | — | |||||||||
Adjusted diluted income per share (1) | $ | 2.69 | $ | 2.23 | 20.6 | ||||||
SG&A RECONCILIATION: | |||||||||||
As reported | $ | 484,592 | $ | 413,439 | 17.2 | ||||||
Pre-tax adjustments: | |||||||||||
Acquisition costs | (6,512 | ) | — | ||||||||
Catastrophic events | (11,900 | ) | (2,650 | ) | |||||||
Net gain on dealership dispositions | 9,023 | — | |||||||||
Net gain on real estate transactions | — | 1,071 | |||||||||
Lease termination | (200 | ) | — | ||||||||
Adjusted SG&A (1) | $ | 475,003 | $ | 411,860 | 15.3 | ||||||
SG&A AS % REVENUES: | |||||||||||
Unadjusted | 11.3 | 11.6 | |||||||||
Adjusted (1) | 11.0 | 11.6 | |||||||||
SG&A AS % GROSS PROFIT: | |||||||||||
Unadjusted | 75.5 | 75.8 | |||||||||
Adjusted (1) | 74.0 | 75.5 | |||||||||
OPERATING MARGIN %: | |||||||||||
Unadjusted | 3.2 | 3.3 | |||||||||
Adjusted (1),(7) | 3.5 | 3.3 |
PRETAX MARGIN %: | |||||||||||
Unadjusted | 2.3 | 2.3 | |||||||||
Adjusted (1),(8) | 2.6 | 2.4 |
SAME STORE SG&A RECONCILIATION: | |||||||||||
As reported | $ | 433,250 | $ | 400,654 | 8.1 | ||||||
Pre-tax adjustments: | |||||||||||
Acquisition costs | (5,301 | ) | — | ||||||||
Catastrophic events | (11,900 | ) | (2,650 | ) | |||||||
Net gain on real estate transactions | — | (504 | ) | ||||||||
Lease termination | (200 | ) | — | ||||||||
Adjusted Same Store SG&A (1) | $ | 415,849 | $ | 397,500 | 4.6 | ||||||
SAME STORE SG&A AS % REVENUES: | |||||||||||
Unadjusted | 11.7 | 11.6 | |||||||||
Adjusted (1) | 11.3 | 11.5 | |||||||||
SAME STORE SG&A AS % GROSS PROFIT: | |||||||||||
Unadjusted | 75.9 | 75.4 | |||||||||
Adjusted (1) | 72.9 | 74.8 | |||||||||
SAME STORE OPERATING MARGIN %: | |||||||||||
Unadjusted | 3.3 | 3.4 | |||||||||
Adjusted (1),(9) | 3.8 | 3.4 |
(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 six months ended June 30, 2013, calculated utilizing the applicable federal and state tax rates for the adjustment. | |||||
(3) | Adjustment is net of tax benefit of $4,335 and $4,639 for the three and six months ended June 30, 2013, respectively, and $992 for the three and six months ended June 30, 2012, calculated utilizing the applicable federal and state tax rates for the adjustment. | |||||
(4) | Adjustment is net of tax provision of $3,540 and $3,758 for the three and six months ended June 30, 2013, respectively, calculated utilizing the applicable federal and state tax rates for the adjustment. | |||||
(5) | Adjustment is net of tax benefit of $76 for the three and six months ended June 30, 2013, calculated utilizing the applicable federal and state tax rates for the adjustment. | |||||
(6) | Adjustment is net of tax benefit of $240 for the three and six months ended June 30, 2013, and $72 for the three and six months ended June 30, 2012, calculated utilizing the applicable federal and state tax rates for the adjustment. | |||||
(7) | Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges for all periods. | |||||
(8) | Excludes the impact of SG&A reconciling items above, non-cash asset impairment charges for all periods, as well as the other expense of $789, for the six months ended June 30, 2013. | |||||
(9) | Excludes the impact of Same Store SG&A reconciling items above, as well as Same Store non-cash asset impairment charges of $609 for the three and six months ended June 30, 2013, and $187 for the three and six months ended June 30, 2012. | |||||
(10) | Adjustment is net of tax provision of $412 for the three and six months ended June 30, 2012, calculated utilizing the applicable federal and state tax rates for the adjustment. |