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. | ||||
October 24, 2013 | By: | /s/ John C. Rickel | ||
Date | John C. Rickel, Senior Vice President and Chief Financial Officer |
▪ | Total revenue increased 18.4 percent to $2.3 billion. |
▪ | New vehicle revenues increased 21.5 percent on 22.5 percent higher unit sales. New vehicle gross profit increased 10.1 percent to $73.3 million as lower margins, down $195 per unit, partially offset the revenue growth. |
▪ | U.K. same store revenue increased 14.4 percent driven by 17.8 percent growth in new vehicle unit sales. |
▪ | Retail used vehicle revenues increased 14.6 percent on increased unit sales of 16.2 percent. Gross profit improved 9.9 percent to $41.5 million as lower margins, down $90 per unit, partially offset the revenue growth. |
▪ | Parts and service gross profit increased 13.2 percent on revenue growth of 13.5 percent. Same store parts and service revenue increased 8.0 percent. |
▪ | Same store Finance and Insurance gross profit per retail unit increased 7.1 percent to $1,338 per unit. |
▪ | SG&A expenses (adjusted) as a percent of gross profit increased 90 basis points, to 75.1 percent, as lower new and used vehicle margins negatively impacted leverage. |
▪ | Fully diluted common shares outstanding averaged 26.3 million shares, up 1.4 million from the Second Quarter, with the increase primarily explained by the dilutive effect of higher share prices on share count derived from the Company’s outstanding convertible securities. |
▪ | United States: |
▪ | United Kingdom: |
▪ | Brazil: |
Group 1 Automotive, Inc. | ||||||||||||
Consolidated Statements of Operations | ||||||||||||
(Unaudited) | ||||||||||||
(In thousands, except per share amounts) | ||||||||||||
Three Months Ended September 30, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 1,386,667 | $ | 1,141,286 | 21.5 | |||||||
Used vehicle retail sales | 529,828 | 462,395 | 14.6 | |||||||||
Used vehicle wholesale sales | 85,800 | 78,424 | 9.4 | |||||||||
Parts and service | 255,316 | 224,990 | 13.5 | |||||||||
Finance and insurance | 82,536 | 69,477 | 18.8 | |||||||||
Total revenues | 2,340,147 | 1,976,572 | 18.4 | |||||||||
COST OF SALES: | ||||||||||||
New vehicle retail sales | 1,313,372 | 1,074,736 | 22.2 | |||||||||
Used vehicle retail sales | 488,346 | 424,663 | 15.0 | |||||||||
Used vehicle wholesale sales | 87,334 | 79,067 | 10.5 | |||||||||
Parts and service | 121,633 | 106,875 | 13.8 | |||||||||
Total cost of sales | 2,010,685 | 1,685,341 | 19.3 | |||||||||
GROSS PROFIT | 329,462 | 291,231 | 13.1 | |||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 246,863 | 216,082 | 14.2 | |||||||||
DEPRECIATION AND AMORTIZATION EXPENSE | 9,093 | 8,096 | 12.3 | |||||||||
ASSET IMPAIRMENTS | 565 | — | 100.0 | |||||||||
OPERATING INCOME | 72,941 | 67,053 | 8.8 | |||||||||
OTHER EXPENSE: | ||||||||||||
Floorplan interest expense | (10,690 | ) | (7,942 | ) | 34.6 | |||||||
Other interest expense, net | (9,971 | ) | (9,619 | ) | 3.7 | |||||||
INCOME BEFORE INCOME TAXES | 52,280 | 49,492 | 5.6 | |||||||||
PROVISION FOR INCOME TAXES | (19,515 | ) | (18,157 | ) | 7.5 | |||||||
NET INCOME | $ | 32,765 | $ | 31,335 | 4.6 | |||||||
Earnings allocated to participating securities | $ | (1,320 | ) | $ | (1,641 | ) | (19.6 | ) | ||||
Earnings available to diluted common shares | $ | 31,445 | $ | 29,694 | 5.9 | |||||||
DILUTED EARNINGS PER SHARE | $ | 1.19 | $ | 1.32 | (9.8 | ) | ||||||
Weighted average dilutive common shares outstanding | 26,342 | 22,458 | 17.3 | |||||||||
Weighted average participating securities | 1,100 | 1,245 | (11.6 | ) | ||||||||
Total weighted average shares outstanding | 27,442 | 23,703 | 15.8 |
Nine Months Ended September 30, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 3,873,121 | $ | 3,134,591 | 23.6 | |||||||
Used vehicle retail sales | 1,536,031 | 1,333,603 | 15.2 | |||||||||
Used vehicle wholesale sales | 243,667 | 218,415 | 11.6 | |||||||||
Parts and service | 753,776 | 658,404 | 14.5 | |||||||||
Finance and insurance | 232,494 | 192,130 | 21.0 | |||||||||
Total revenues | 6,639,089 | 5,537,143 | 19.9 | |||||||||
COST OF SALES: | ||||||||||||
New vehicle retail sales | 3,656,825 | 2,951,379 | 23.9 | |||||||||
Used vehicle retail sales | 1,410,768 | 1,220,628 | 15.6 | |||||||||
Used vehicle wholesale sales | 242,267 | 216,031 | 12.1 | |||||||||
Parts and service | 358,004 | 312,106 | 14.7 | |||||||||
Total cost of sales | 5,667,864 | 4,700,144 | 20.6 | |||||||||
GROSS PROFIT | 971,225 | 836,999 | 16.0 | |||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 731,455 | 629,521 | 16.2 | |||||||||
DEPRECIATION AND AMORTIZATION EXPENSE | 26,390 | 23,074 | 14.4 | |||||||||
ASSET IMPAIRMENTS | 1,174 | 288 | 307.6 | |||||||||
OPERATING INCOME | 212,206 | 184,116 | 15.3 | |||||||||
OTHER EXPENSE: | ||||||||||||
Floorplan interest expense | (30,927 | ) | (23,424 | ) | 32.0 | |||||||
Other interest expense, net | (28,783 | ) | (27,849 | ) | 3.4 | |||||||
Other expense, net | (789 | ) | — | 100.0 | ||||||||
INCOME BEFORE INCOME TAXES | 151,707 | 132,843 | 14.2 | |||||||||
PROVISION FOR INCOME TAXES | (59,436 | ) | (49,766 | ) | 19.4 | |||||||
NET INCOME | $ | 92,271 | $ | 83,077 | 11.1 | |||||||
Earnings allocated to participating securities | $ | (3,843 | ) | $ | (4,373 | ) | (12.1 | ) | ||||
Earnings available to diluted common shares | $ | 88,428 | $ | 78,704 | 12.4 | |||||||
DILUTED EARNINGS PER SHARE | $ | 3.52 | $ | 3.50 | 0.6 | |||||||
Weighted average dilutive common shares outstanding | 25,153 | 22,501 | 11.8 | |||||||||
Weighted average participating securities | 1,095 | 1,257 | (12.9 | ) | ||||||||
Total weighted average shares outstanding | 26,248 | 23,758 | 10.5 |
Group 1 Automotive, Inc. | ||||||||||||
Consolidated Balance Sheets | ||||||||||||
(Dollars in thousands) | ||||||||||||
September 30, | December 31, | |||||||||||
2013 | 2012 | % Change | ||||||||||
(Unaudited) | ||||||||||||
ASSETS: | ||||||||||||
CURRENT ASSETS: | ||||||||||||
Cash and cash equivalents | $ | 26,278 | $ | 4,650 | 465.1 | |||||||
Contracts in transit and vehicle receivables, net | 160,554 | 204,396 | (21.4 | ) | ||||||||
Accounts and notes receivable, net | 123,376 | 111,228 | 10.9 | |||||||||
Inventories, net | 1,351,719 | 1,194,288 | 13.2 | |||||||||
Deferred income taxes | 22,273 | 19,750 | 12.8 | |||||||||
Prepaid expenses and other current assets | 23,775 | 31,869 | (25.4 | ) | ||||||||
Total current assets | 1,707,975 | 1,566,181 | 9.1 | |||||||||
PROPERTY AND EQUIPMENT, net | 716,514 | 667,768 | 7.3 | |||||||||
GOODWILL AND INTANGIBLE FRANCHISE RIGHTS | 969,677 | 778,442 | 24.6 | |||||||||
OTHER ASSETS | 15,742 | 10,624 | 48.2 | |||||||||
Total assets | $ | 3,409,908 | $ | 3,023,015 | 12.8 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY: | ||||||||||||
CURRENT LIABILITIES: | ||||||||||||
Floorplan notes payable - credit facility and other | $ | 960,871 | $ | 968,959 | (0.8 | ) | ||||||
Offset account related to floorplan notes payable - credit facility | (47,709 | ) | (112,261 | ) | (57.5 | ) | ||||||
Floorplan notes payable - manufacturer affiliates | 308,869 | 211,965 | 45.7 | |||||||||
Current maturities of long-term debt and short-term financing | 27,010 | 31,358 | (13.9 | ) | ||||||||
Accounts payable | 201,699 | 167,439 | 20.5 | |||||||||
Accrued expenses | 133,777 | 128,118 | 4.4 | |||||||||
Total current liabilities | 1,584,517 | 1,395,578 | 13.5 | |||||||||
2.25% CONVERTIBLE SENIOR NOTES (aggregate principal of $182,753 at September 30, 2013 and December 31, 2012) | 158,283 | 152,363 | 3.9 | |||||||||
3.00% CONVERTIBLE SENIOR NOTES (aggregate principal of $115,000 at September 30, 2013 and December 31, 2012) | 83,377 | 80,706 | 3.3 | |||||||||
MORTGAGE FACILITY, net of current maturities | 46,046 | 53,643 | (14.2 | ) | ||||||||
OTHER REAL ESTATE RELATED AND LONG-TERM DEBT, net of current maturities | 228,271 | 232,285 | (1.7 | ) | ||||||||
CAPITAL LEASE OBLIGATIONS RELATED TO REAL ESTATE, net of current maturities | 44,450 | 36,019 | 23.4 | |||||||||
DEFERRED INCOME TAXES | 136,664 | 94,130 | 45.2 | |||||||||
LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES | 29,184 | 43,089 | (32.3 | ) | ||||||||
OTHER LIABILITIES | 46,200 | 42,413 | 8.9 | |||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
TEMPORARY EQUITY - REDEEMABLE EQUITY PORTION OF THE 3.00% CONVERTIBLE SENIOR NOTES | 29,974 | 32,505 | (7.8 | ) | ||||||||
STOCKHOLDERS' EQUITY: | ||||||||||||
Common stock | 259 | 258 | 0.4 | |||||||||
Additional paid-in capital | 369,198 | 332,836 | 10.9 | |||||||||
Retained earnings | 758,498 | 677,864 | 11.9 | |||||||||
Accumulated other comprehensive loss | (46,345 | ) | (33,057 | ) | 40.2 | |||||||
Treasury stock | (58,668 | ) | (117,617 | ) | (50.1 | ) | ||||||
Total stockholders' equity | 1,022,942 | 860,284 | 18.9 | |||||||||
Total liabilities and stockholders' equity | $ | 3,409,908 | $ | 3,023,015 | 12.8 |
Group 1 Automotive, Inc. | ||||||||||||||
Additional Information - Consolidated | ||||||||||||||
(Unaudited) | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 (%) | 2012 (%) | 2013 (%) | 2012 (%) | |||||||||||
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX: | ||||||||||||||
Region | Geographic Market | |||||||||||||
East | Massachusetts | 5.5 | 9.6 | 5.9 | 10.0 | |||||||||
New Jersey | 4.1 | 5.0 | 4.2 | 5.0 | ||||||||||
Georgia | 3.3 | 3.8 | 3.6 | 3.5 | ||||||||||
New Hampshire | 2.6 | 2.8 | 2.4 | 2.9 | ||||||||||
New York | 2.4 | 2.5 | 2.7 | 3.0 | ||||||||||
Louisiana | 2.1 | 2.1 | 2.3 | 2.5 | ||||||||||
Mississippi | 1.6 | 1.8 | 1.6 | 2.0 | ||||||||||
South Carolina | 1.5 | 1.7 | 1.5 | 1.8 | ||||||||||
Florida | 1.3 | 1.7 | 1.3 | 1.2 | ||||||||||
Alabama | 0.8 | 0.9 | 0.8 | 1.0 | ||||||||||
Maryland | 0.6 | 0.6 | 0.6 | 0.6 | ||||||||||
25.8 | 32.5 | 26.9 | 33.5 | |||||||||||
West | Texas | 32.7 | 36.2 | 32.7 | 36.7 | |||||||||
California | 8.7 | 14.5 | 10.7 | 14.5 | ||||||||||
Oklahoma | 8.0 | 8.0 | 7.8 | 7.8 | ||||||||||
Kansas | 2.5 | 1.4 | 2.5 | 1.4 | ||||||||||
51.9 | 60.1 | 53.7 | 60.4 | |||||||||||
International | Brazil | 12.1 | — | 10.2 | — | |||||||||
United Kingdom | 10.2 | 7.4 | 9.2 | 6.1 | ||||||||||
100.0 | 100.0 | 100.0 | 100.0 | |||||||||||
NEW VEHICLE UNIT SALES BRAND MIX: | ||||||||||||||
Toyota/Scion/Lexus | 26.9 | 30.8 | 27.0 | 30.9 | ||||||||||
Ford/Lincoln | 12.3 | 8.8 | 11.8 | 9.2 | ||||||||||
Honda/Acura | 11.6 | 11.1 | 12.1 | 11.2 | ||||||||||
BMW/MINI | 11.1 | 10.1 | 10.7 | 10.7 | ||||||||||
Nissan/Infiniti | 9.8 | 12.0 | 10.2 | 11.9 | ||||||||||
Volkswagen/Audi/Porsche | 6.6 | 8.3 | 6.5 | 6.5 | ||||||||||
Hyundai/Kia | 5.0 | 3.0 | 4.7 | 2.9 | ||||||||||
Chevrolet/GMC/Buick/Cadillac | 4.6 | 5.5 | 4.8 | 5.8 | ||||||||||
Chrysler/Dodge/Jeep/RAM | 3.9 | 4.3 | 4.0 | 4.4 | ||||||||||
Mercedes Benz/smart/Sprinter | 3.8 | 4.3 | 4.2 | 4.6 | ||||||||||
Other | 4.4 | 1.8 | 4.0 | 1.9 | ||||||||||
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 September 30, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 1,091,221 | $ | 1,048,894 | 4.0 | |||||||
Used vehicle retail sales | 443,716 | 423,277 | 4.8 | |||||||||
Used vehicle wholesale sales | 59,833 | 63,337 | (5.5 | ) | ||||||||
Total used | 503,549 | 486,614 | 3.5 | |||||||||
Parts and service | 218,880 | 211,835 | 3.3 | |||||||||
Finance and insurance | 75,728 | 66,843 | 13.3 | |||||||||
Total | $ | 1,889,378 | $ | 1,814,186 | 4.1 | |||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 5.0 | 5.7 | ||||||||||
Used vehicle retail sales | 8.1 | 8.3 | ||||||||||
Used vehicle wholesale sales | (2.3 | ) | (1.0 | ) | ||||||||
Total used | 6.9 | 7.0 | ||||||||||
Parts and service | 52.9 | 52.3 | ||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||
Total | 14.8 | 15.0 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 54,086 | $ | 59,662 | (9.3 | ) | ||||||
Used vehicle retail sales | 35,937 | 34,937 | 2.9 | |||||||||
Used vehicle wholesale sales | (1,373 | ) | (636 | ) | 115.9 | |||||||
Total used | 34,564 | 34,301 | 0.8 | |||||||||
Parts and service | 115,887 | 110,756 | 4.6 | |||||||||
Finance and insurance | 75,728 | 66,843 | 13.3 | |||||||||
Total | $ | 280,265 | $ | 271,562 | 3.2 | |||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 32,866 | 31,962 | 2.8 | |||||||||
Retail used vehicles sold | 22,206 | 21,084 | 5.3 | |||||||||
Wholesale used vehicles sold | 10,455 | 10,540 | (0.8 | ) | ||||||||
Total used | 32,661 | 31,624 | 3.3 | |||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 33,202 | $ | 32,817 | 1.2 | |||||||
Used vehicle retail | $ | 19,982 | $ | 20,076 | (0.5 | ) | ||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 1,646 | $ | 1,867 | (11.8 | ) | ||||||
Used vehicle retail sales | 1,618 | 1,657 | (2.4 | ) | ||||||||
Used vehicle wholesale sales | (131 | ) | (60 | ) | 118.3 | |||||||
Total used | 1,058 | 1,085 | (2.5 | ) | ||||||||
Finance and insurance (per retail unit) | $ | 1,375 | $ | 1,260 | 9.1 | |||||||
OTHER: (1) | ||||||||||||
SG&A expenses | $ | 207,494 | $ | 200,980 | 3.2 | |||||||
SG&A as % revenues | 11.0 | 11.1 | ||||||||||
SG&A as % gross profit | 74.0 | 74.0 | ||||||||||
Operating margin % | 3.4 | 3.5 | ||||||||||
Pretax margin % | 2.5 | 2.5 | ||||||||||
INTEREST EXPENSE: | ||||||||||||
Floorplan interest expense | $ | (8,087 | ) | $ | (7,613 | ) | 6.2 | |||||
Floorplan assistance | 10,108 | 9,204 | 9.8 | |||||||||
Net floorplan income | $ | 2,021 | $ | 1,591 | 27.0 | |||||||
Other interest expense, net | $ | (9,650 | ) | $ | (9,417 | ) | 2.5 |
Nine Months Ended September 30, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 3,132,461 | $ | 2,925,453 | 7.1 | |||||||
Used vehicle retail sales | 1,310,629 | 1,236,285 | 6.0 | |||||||||
Used vehicle wholesale sales | 174,227 | 183,369 | (5.0 | ) | ||||||||
Total used | 1,484,856 | 1,419,654 | 4.6 | |||||||||
Parts and service | 659,318 | 626,515 | 5.2 | |||||||||
Finance and insurance | 216,184 | 186,417 | 16.0 | |||||||||
Total | $ | 5,492,819 | $ | 5,158,039 | 6.5 | |||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 5.2 | 5.7 | ||||||||||
Used vehicle retail sales | 8.5 | 8.6 | ||||||||||
Used vehicle wholesale sales | 0.6 | 1.4 | ||||||||||
Total used | 7.6 | 7.7 | ||||||||||
Parts and service | 53.2 | 52.5 | ||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||
Total | 15.4 | 15.4 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 163,994 | $ | 167,762 | (2.2 | ) | ||||||
Used vehicle retail sales | 111,897 | 106,498 | 5.1 | |||||||||
Used vehicle wholesale sales | 1,000 | 2,578 | (61.2 | ) | ||||||||
Total used | 112,897 | 109,076 | 3.5 | |||||||||
Parts and service | 350,608 | 328,791 | 6.6 | |||||||||
Finance and insurance | 216,184 | 186,417 | 16.0 | |||||||||
Total | $ | 843,683 | $ | 792,046 | 6.5 | |||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 94,233 | 89,525 | 5.3 | |||||||||
Retail used vehicles sold | 65,250 | 61,742 | 5.7 | |||||||||
Wholesale used vehicles sold | 30,052 | 29,849 | 0.7 | |||||||||
Total used | 95,302 | 91,591 | 4.1 | |||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 33,242 | $ | 32,677 | 1.7 | |||||||
Used vehicle retail | $ | 20,086 | $ | 20,023 | 0.3 | |||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 1,740 | $ | 1,874 | (7.2 | ) | ||||||
Used vehicle retail sales | 1,715 | 1,725 | (0.6 | ) | ||||||||
Used vehicle wholesale sales | 33 | 86 | (61.6 | ) | ||||||||
Total used | 1,185 | 1,191 | (0.5 | ) | ||||||||
Finance and insurance (per retail unit) | $ | 1,356 | $ | 1,232 | 10.1 | |||||||
OTHER: (1) | ||||||||||||
SG&A expenses | $ | 619,562 | $ | 592,295 | 4.6 | |||||||
SG&A as % revenues | 11.3 | 11.5 | ||||||||||
SG&A as % gross profit | 73.4 | 74.8 | ||||||||||
Operating margin % | 3.7 | 3.5 | ||||||||||
Pretax margin % | 2.7 | 2.5 | ||||||||||
INTEREST EXPENSE: | ||||||||||||
Floorplan interest expense | $ | (25,027 | ) | $ | (22,641 | ) | 10.5 | |||||
Floorplan assistance | 28,291 | 25,276 | 11.9 | |||||||||
Net floorplan income | $ | 3,264 | $ | 2,635 | 23.9 | |||||||
Other interest expense, net | $ | (27,991 | ) | $ | (27,405 | ) | 2.1 |
Group 1 Automotive, Inc. | ||||||||||||
Additional Information - U.K. | ||||||||||||
(Unaudited) | ||||||||||||
(Dollars in thousands, except per unit amounts) | ||||||||||||
Three Months Ended September 30, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 136,740 | $ | 92,392 | 48.0 | |||||||
Used vehicle retail sales | 59,508 | 39,118 | 52.1 | |||||||||
Used vehicle wholesale sales | 16,959 | 15,087 | 12.4 | |||||||||
Total used | 76,467 | 54,205 | 41.1 | |||||||||
Parts and service | 17,470 | 13,155 | 32.8 | |||||||||
Finance and insurance | 4,237 | 2,634 | 60.9 | |||||||||
Total | $ | 234,914 | $ | 162,386 | 44.7 | |||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 5.7 | 7.5 | ||||||||||
Used vehicle retail sales | 6.5 | 7.1 | ||||||||||
Used vehicle wholesale sales | (1.3 | ) | — | |||||||||
Total used | 4.8 | 5.1 | ||||||||||
Parts and service | 56.1 | 55.9 | ||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||
Total | 10.9 | 12.1 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 7,848 | $ | 6,888 | 13.9 | |||||||
Used vehicle retail sales | 3,849 | 2,795 | 37.7 | |||||||||
Used vehicle wholesale sales | (214 | ) | (7 | ) | 2,957.1 | |||||||
Total used | 3,635 | 2,788 | 30.4 | |||||||||
Parts and service | 9,793 | 7,359 | 33.1 | |||||||||
Finance and insurance | 4,237 | 2,634 | 60.9 | |||||||||
Total | $ | 25,513 | $ | 19,669 | 29.7 | |||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 4,306 | 2,570 | 67.5 | |||||||||
Retail used vehicles sold | 2,510 | 1,349 | 86.1 | |||||||||
Wholesale used vehicles sold | 2,078 | 1,509 | 37.7 | |||||||||
Total used | 4,588 | 2,858 | 60.5 | |||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 31,756 | $ | 35,950 | (11.7 | ) | ||||||
Used vehicle retail | $ | 23,708 | $ | 28,998 | (18.2 | ) | ||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 1,823 | $ | 2,680 | (32.0 | ) | ||||||
Used vehicle retail sales | 1,533 | 2,072 | (26.0 | ) | ||||||||
Used vehicle wholesale sales | (103 | ) | (5 | ) | 1,960.0 | |||||||
Total used | 792 | 976 | (18.9 | ) | ||||||||
Finance and insurance (per retail unit) | $ | 622 | $ | 672 | (7.4 | ) | ||||||
OTHER: | ||||||||||||
SG&A expenses | $ | 19,656 | $ | 15,102 | 30.2 | |||||||
SG&A as % revenues | 8.4 | 9.3 | ||||||||||
SG&A as % gross profit | 77.0 | 76.8 | ||||||||||
Operating margin % | 2.2 | 2.4 | ||||||||||
Pretax margin % | 1.9 | 2.1 | ||||||||||
INTEREST EXPENSE: | ||||||||||||
Floorplan interest expense | $ | (425 | ) | $ | (329 | ) | 29.2 | |||||
Floorplan assistance | 111 | — | 100.0 | |||||||||
Net floorplan expense | $ | (314 | ) | $ | (329 | ) | (4.6 | ) | ||||
Other interest expense, net | $ | (293 | ) | $ | (203 | ) | 44.3 |
Nine Months Ended September 30, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 342,038 | $ | 209,138 | 63.5 | |||||||
Used vehicle retail sales | 162,901 | 97,318 | 67.4 | |||||||||
Used vehicle wholesale sales | 48,682 | 35,046 | 38.9 | |||||||||
Total used | 211,583 | 132,364 | 59.8 | |||||||||
Parts and service | 49,265 | 31,889 | 54.5 | |||||||||
Finance and insurance | 10,542 | 5,713 | 84.5 | |||||||||
Total | $ | 613,428 | $ | 379,104 | 61.8 | |||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 6.3 | 7.4 | ||||||||||
Used vehicle retail sales | 6.2 | 6.7 | ||||||||||
Used vehicle wholesale sales | (1.5 | ) | (0.6 | ) | ||||||||
Total used | 4.4 | 4.7 | ||||||||||
Parts and service | 54.5 | 54.9 | ||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||
Total | 11.2 | 11.9 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 21,641 | $ | 15,450 | 40.1 | |||||||
Used vehicle retail sales | 10,117 | 6,477 | 56.2 | |||||||||
Used vehicle wholesale sales | (743 | ) | (194 | ) | 283.0 | |||||||
Total used | 9,374 | 6,283 | 49.2 | |||||||||
Parts and service | 26,871 | 17,507 | 53.5 | |||||||||
Finance and insurance | 10,542 | 5,713 | 84.5 | |||||||||
Total | $ | 68,428 | $ | 44,953 | 52.2 | |||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 10,738 | 5,861 | 83.2 | |||||||||
Retail used vehicles sold | 6,762 | 3,444 | 96.3 | |||||||||
Wholesale used vehicles sold | 5,772 | 3,438 | 67.9 | |||||||||
Total used | 12,534 | 6,882 | 82.1 | |||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 31,853 | $ | 35,683 | (10.7 | ) | ||||||
Used vehicle retail | $ | 24,091 | $ | 28,257 | (14.7 | ) | ||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 2,015 | $ | 2,636 | (23.6 | ) | ||||||
Used vehicle retail sales | 1,496 | 1,881 | (20.5 | ) | ||||||||
Used vehicle wholesale sales | (129 | ) | (56 | ) | 130.4 | |||||||
Total used | 748 | 913 | (18.1 | ) | ||||||||
Finance and insurance (per retail unit) | $ | 602 | $ | 614 | (2.0 | ) | ||||||
OTHER: (1) | ||||||||||||
SG&A expenses | $ | 54,120 | $ | 35,647 | 51.8 | |||||||
SG&A as % revenues | 8.8 | 9.4 | ||||||||||
SG&A as % gross profit | 79.1 | 79.3 | ||||||||||
Operating margin % | 2.0 | 2.0 | ||||||||||
Pretax margin % | 1.7 | 1.7 | ||||||||||
INTEREST EXPENSE: | ||||||||||||
Floorplan interest expense | $ | (1,152 | ) | $ | (784 | ) | 46.9 | |||||
Floorplan assistance | 111 | — | 100.0 | |||||||||
Net floorplan expense | $ | (1,041 | ) | $ | (784 | ) | 32.8 | |||||
Other interest expense, net | $ | (800 | ) | $ | (443 | ) | 80.6 |
Group 1 Automotive, Inc. | |||||
Additional Information - Brazil | |||||
(Unaudited) | |||||
(Dollars in thousands, except per unit amounts) | |||||
Three Months Ended September 30, 2013 | |||||
REVENUES: | |||||
New vehicle retail sales | $ | 158,706 | |||
Used vehicle retail sales | 26,604 | ||||
Used vehicle wholesale sales | 9,008 | ||||
Total used | 35,612 | ||||
Parts and service | 18,966 | ||||
Finance and insurance | 2,571 | ||||
Total | $ | 215,855 | |||
GROSS MARGIN %: | |||||
New vehicle retail sales | 7.2 | ||||
Used vehicle retail sales | 6.4 | ||||
Used vehicle wholesale sales | 0.6 | ||||
Total used | 4.9 | ||||
Parts and service | 42.2 | ||||
Finance and insurance | 100.0 | ||||
Total | 11.0 | ||||
GROSS PROFIT: | |||||
New vehicle retail sales | $ | 11,361 | |||
Used vehicle retail sales | 1,696 | ||||
Used vehicle wholesale sales | 53 | ||||
Total used | 1,749 | ||||
Parts and service | 8,003 | ||||
Finance and insurance | 2,571 | ||||
Total | $ | 23,684 | |||
UNITS SOLD: | |||||
Retail new vehicles sold | 5,139 | ||||
Retail used vehicles sold | 1,343 | ||||
Wholesale used vehicles sold | 912 | ||||
Total used | 2,255 | ||||
AVERAGE RETAIL SALES PRICE: | |||||
New vehicle retail | $ | 30,883 | |||
Used vehicle retail | $ | 19,809 | |||
GROSS PROFIT PER UNIT SOLD: | |||||
New vehicle retail sales | $ | 2,211 | |||
Used vehicle retail sales | 1,263 | ||||
Used vehicle wholesale sales | 58 | ||||
Total used | 776 | ||||
Finance and insurance (per retail unit) | $ | 397 | |||
OTHER: (1) | |||||
SG&A expenses | $ | 20,277 | |||
SG&A as % revenues | 9.4 | ||||
SG&A as % gross profit | 85.6 | ||||
Operating margin % | 1.4 | ||||
Pretax margin % | 0.3 | ||||
INTEREST EXPENSE: | |||||
Floorplan interest expense | $ | (2,178 | ) | ||
Floorplan assistance | — | ||||
Net floorplan expense | $ | (2,178 | ) | ||
Other interest expense, net | $ | (29 | ) |
Nine Months Ended | |||||
September 30, 2013 (2) | |||||
REVENUES: | |||||
New vehicle retail sales | $ | 398,622 | |||
Used vehicle retail sales | 62,501 | ||||
Used vehicle wholesale sales | 20,758 | ||||
Total used | 83,259 | ||||
Parts and service | 45,193 | ||||
Finance and insurance | 5,768 | ||||
Total | $ | 532,842 | |||
GROSS MARGIN %: | |||||
New vehicle retail sales | 7.7 | ||||
Used vehicle retail sales | 5.2 | ||||
Used vehicle wholesale sales | 5.5 | ||||
Total used | 5.3 | ||||
Parts and service | 40.5 | ||||
Finance and insurance | 100.0 | ||||
Total | 11.1 | ||||
GROSS PROFIT: | |||||
New vehicle retail sales | $ | 30,661 | |||
Used vehicle retail sales | 3,249 | ||||
Used vehicle wholesale sales | 1,143 | ||||
Total used | 4,392 | ||||
Parts and service | 18,293 | ||||
Finance and insurance | 5,768 | ||||
Total | $ | 59,114 | |||
UNITS SOLD: | |||||
Retail new vehicles sold | 11,967 | ||||
Retail used vehicles sold | 2,919 | ||||
Wholesale used vehicles sold | 2,028 | ||||
Total used | 4,947 | ||||
AVERAGE RETAIL SALES PRICE: | |||||
New vehicle retail | $ | 33,310 | |||
Used vehicle retail | $ | 21,412 | |||
GROSS PROFIT PER UNIT SOLD: | |||||
New vehicle retail sales | $ | 2,562 | |||
Used vehicle retail sales | 1,113 | ||||
Used vehicle wholesale sales | 564 | ||||
Total used | 888 | ||||
Finance and insurance (per retail unit) | $ | 387 | |||
OTHER: (1) | |||||
SG&A expenses | $ | 48,748 | |||
SG&A as % revenues | 9.1 | ||||
SG&A as % gross profit | 82.5 | ||||
Operating margin % | 1.7 | ||||
Pretax margin % | 0.9 | ||||
INTEREST EXPENSE: | |||||
Floorplan interest expense | $ | (4,748 | ) | ||
Floorplan assistance | — | ||||
Net floorplan expense | $ | (4,748 | ) | ||
Other interest income, net | $ | 7 |
Group 1 Automotive, Inc. | ||||||||||||
Additional Information - Consolidated | ||||||||||||
(Unaudited) | ||||||||||||
(Dollars in thousands, except per unit amounts) | ||||||||||||
Three Months Ended September 30, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 1,386,667 | $ | 1,141,286 | 21.5 | |||||||
Used vehicle retail sales | 529,828 | 462,395 | 14.6 | |||||||||
Used vehicle wholesale sales | 85,800 | 78,424 | 9.4 | |||||||||
Total used | 615,628 | 540,819 | 13.8 | |||||||||
Parts and service | 255,316 | 224,990 | 13.5 | |||||||||
Finance and insurance | 82,536 | 69,477 | 18.8 | |||||||||
Total | $ | 2,340,147 | $ | 1,976,572 | 18.4 | |||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 5.3 | 5.8 | ||||||||||
Used vehicle retail sales | 7.8 | 8.2 | ||||||||||
Used vehicle wholesale sales | (1.8 | ) | (0.8 | ) | ||||||||
Total used | 6.5 | 6.9 | ||||||||||
Parts and service | 52.4 | 52.5 | ||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||
Total | 14.1 | 14.7 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 73,295 | $ | 66,550 | 10.1 | |||||||
Used vehicle retail sales | 41,482 | 37,732 | 9.9 | |||||||||
Used vehicle wholesale sales | (1,534 | ) | (643 | ) | 138.6 | |||||||
Total used | 39,948 | 37,089 | 7.7 | |||||||||
Parts and service | 133,683 | 118,115 | 13.2 | |||||||||
Finance and insurance | 82,536 | 69,477 | 18.8 | |||||||||
Total | $ | 329,462 | $ | 291,231 | 13.1 | |||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 42,311 | 34,532 | 22.5 | |||||||||
Retail used vehicles sold | 26,059 | 22,433 | 16.2 | |||||||||
Wholesale used vehicles sold | 13,445 | 12,049 | 11.6 | |||||||||
Total used | 39,504 | 34,482 | 14.6 | |||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 32,773 | $ | 33,050 | (0.8 | ) | ||||||
Used vehicle retail | $ | 20,332 | $ | 20,612 | (1.4 | ) | ||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 1,732 | $ | 1,927 | (10.1 | ) | ||||||
Used vehicle retail sales | 1,592 | 1,682 | (5.4 | ) | ||||||||
Used vehicle wholesale sales | (114 | ) | (53 | ) | 115.1 | |||||||
Total used | 1,011 | 1,076 | (6.0 | ) | ||||||||
Finance and insurance (per retail unit) | $ | 1,207 | $ | 1,220 | (1.1 | ) | ||||||
OTHER: (1) | ||||||||||||
SG&A expenses | $ | 247,427 | $ | 216,082 | 14.5 | |||||||
SG&A as % revenues | 10.6 | 10.9 | ||||||||||
SG&A as % gross profit | 75.1 | 74.2 | ||||||||||
Operating margin % | 3.1 | 3.4 | ||||||||||
Pretax margin % | 2.2 | 2.5 | ||||||||||
INTEREST EXPENSE: | ||||||||||||
Floorplan interest expense | $ | (10,690 | ) | $ | (7,942 | ) | 34.6 | |||||
Floorplan assistance | 10,219 | 9,204 | 11.0 | |||||||||
Net floorplan income (expense) | $ | (471 | ) | $ | 1,262 | (137.3 | ) | |||||
Other interest expense, net | $ | (9,971 | ) | $ | (9,619 | ) | 3.7 |
Nine Months Ended September 30, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 3,873,121 | $ | 3,134,591 | 23.6 | |||||||
Used vehicle retail sales | 1,536,031 | 1,333,603 | 15.2 | |||||||||
Used vehicle wholesale sales | 243,667 | 218,415 | 11.6 | |||||||||
Total used | 1,779,698 | 1,552,018 | 14.7 | |||||||||
Parts and service | 753,776 | 658,404 | 14.5 | |||||||||
Finance and insurance | 232,494 | 192,130 | 21.0 | |||||||||
Total | $ | 6,639,089 | $ | 5,537,143 | 19.9 | |||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 5.6 | 5.8 | ||||||||||
Used vehicle retail sales | 8.2 | 8.5 | ||||||||||
Used vehicle wholesale sales | 0.6 | 1.1 | ||||||||||
Total used | 7.1 | 7.4 | ||||||||||
Parts and service | 52.5 | 52.6 | ||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||
Total | 14.6 | 15.1 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 216,296 | $ | 183,212 | 18.1 | |||||||
Used vehicle retail sales | 125,263 | 112,975 | 10.9 | |||||||||
Used vehicle wholesale sales | 1,400 | 2,384 | (41.3 | ) | ||||||||
Total used | 126,663 | 115,359 | 9.8 | |||||||||
Parts and service | 395,772 | 346,298 | 14.3 | |||||||||
Finance and insurance | 232,494 | 192,130 | 21.0 | |||||||||
Total | $ | 971,225 | $ | 836,999 | 16.0 | |||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 116,938 | 95,386 | 22.6 | |||||||||
Retail used vehicles sold | 74,931 | 65,186 | 14.9 | |||||||||
Wholesale used vehicles sold | 37,852 | 33,287 | 13.7 | |||||||||
Total used | 112,783 | 98,473 | 14.5 | |||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 33,121 | $ | 32,862 | 0.8 | |||||||
Used vehicle retail | $ | 20,499 | $ | 20,458 | 0.2 | |||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 1,850 | $ | 1,921 | (3.7 | ) | ||||||
Used vehicle retail sales | 1,672 | 1,733 | (3.5 | ) | ||||||||
Used vehicle wholesale sales | 37 | 72 | (48.6 | ) | ||||||||
Total used | 1,123 | 1,171 | (4.1 | ) | ||||||||
Finance and insurance (per retail unit) | $ | 1,212 | $ | 1,197 | 1.3 | |||||||
OTHER: (1) | ||||||||||||
SG&A expenses | $ | 722,430 | $ | 627,942 | 15.0 | |||||||
SG&A as % revenues | 10.9 | 11.3 | ||||||||||
SG&A as % gross profit | 74.4 | 75.0 | ||||||||||
Operating margin % | 3.3 | 3.4 | ||||||||||
Pretax margin % | 2.5 | 2.4 | ||||||||||
INTEREST EXPENSE: | ||||||||||||
Floorplan interest expense | $ | (30,927 | ) | $ | (23,424 | ) | 32.0 | |||||
Floorplan assistance | 28,402 | 25,276 | 12.4 | |||||||||
Net floorplan income (expense) | $ | (2,525 | ) | $ | 1,852 | (236.3 | ) | |||||
Other interest expense, net | $ | (28,783 | ) | $ | (27,849 | ) | 3.4 |
Group 1 Automotive, Inc. | ||||||||||||
Additional Information - Same Store(1) | ||||||||||||
(Unaudited) | ||||||||||||
(Dollars in thousands, except per unit amounts) | ||||||||||||
Three Months Ended September 30, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 1,148,915 | $ | 1,066,782 | 7.7 | |||||||
Used vehicle retail sales | 467,093 | 438,868 | 6.4 | |||||||||
Used vehicle wholesale sales | 70,965 | 73,767 | (3.8 | ) | ||||||||
Total used | 538,058 | 512,635 | 5.0 | |||||||||
Parts and service | 226,981 | 210,261 | 8.0 | |||||||||
Finance and insurance | 75,779 | 66,200 | 14.5 | |||||||||
Total | $ | 1,989,733 | $ | 1,855,878 | 7.2 | |||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 5.1 | 5.9 | ||||||||||
Used vehicle retail sales | 7.8 | 8.2 | ||||||||||
Used vehicle wholesale sales | (1.5 | ) | (0.6 | ) | ||||||||
Total used | 6.6 | 6.9 | ||||||||||
Parts and service | 53.3 | 52.5 | ||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||
Total | 14.6 | 14.8 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 58,652 | $ | 63,355 | (7.4 | ) | ||||||
Used vehicle retail sales | 36,585 | 35,890 | 1.9 | |||||||||
Used vehicle wholesale sales | (1,059 | ) | (478 | ) | 121.5 | |||||||
Total used | 35,526 | 35,412 | 0.3 | |||||||||
Parts and service | 120,894 | 110,366 | 9.5 | |||||||||
Finance and insurance | 75,779 | 66,200 | 14.5 | |||||||||
Total | $ | 290,851 | $ | 275,333 | 5.6 | |||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 34,174 | 31,904 | 7.1 | |||||||||
Retail used vehicles sold | 22,478 | 21,103 | 6.5 | |||||||||
Wholesale used vehicles sold | 11,313 | 11,107 | 1.9 | |||||||||
Total used | 33,791 | 32,210 | 4.9 | |||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 33,620 | $ | 33,437 | 0.5 | |||||||
Used vehicle retail | $ | 20,780 | $ | 20,796 | (0.1 | ) | ||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 1,716 | $ | 1,986 | (13.6 | ) | ||||||
Used vehicle retail sales | 1,628 | 1,701 | (4.3 | ) | ||||||||
Used vehicle wholesale sales | (94 | ) | (43 | ) | 118.6 | |||||||
Total used | 1,051 | 1,099 | (4.4 | ) | ||||||||
Finance and insurance (per retail unit) | $ | 1,338 | $ | 1,249 | 7.1 | |||||||
OTHER: (2) | ||||||||||||
SG&A expenses | $ | 214,197 | $ | 201,034 | 6.5 | |||||||
SG&A as % revenues | 10.8 | 10.8 | ||||||||||
SG&A as % gross profit | 73.6 | 73.0 | ||||||||||
Operating margin % | 3.4 | 3.6 |
Nine Months Ended September 30, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 3,233,449 | $ | 3,003,079 | 7.7 | |||||||
Used vehicle retail sales | 1,354,555 | 1,285,471 | 5.4 | |||||||||
Used vehicle wholesale sales | 201,109 | 208,297 | (3.5 | ) | ||||||||
Total used | 1,555,664 | 1,493,768 | 4.1 | |||||||||
Parts and service | 677,732 | 631,012 | 7.4 | |||||||||
Finance and insurance | 214,889 | 186,140 | 15.4 | |||||||||
Total | $ | 5,681,734 | $ | 5,313,999 | 6.9 | |||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 5.3 | 5.9 | ||||||||||
Used vehicle retail sales | 8.3 | 8.5 | ||||||||||
Used vehicle wholesale sales | 0.7 | 1.2 | ||||||||||
Total used | 7.3 | 7.5 | ||||||||||
Parts and service | 53.2 | 52.6 | ||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||
Total | 15.2 | 15.2 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 172,909 | $ | 177,133 | (2.4 | ) | ||||||
Used vehicle retail sales | 112,026 | 109,286 | 2.5 | |||||||||
Used vehicle wholesale sales | 1,357 | 2,591 | (47.6 | ) | ||||||||
Total used | 113,383 | 111,877 | 1.3 | |||||||||
Parts and service | 360,462 | 331,692 | 8.7 | |||||||||
Finance and insurance | 214,889 | 186,140 | 15.4 | |||||||||
Total | $ | 861,643 | $ | 806,842 | 6.8 | |||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 96,154 | 90,695 | 6.0 | |||||||||
Retail used vehicles sold | 65,254 | 62,505 | 4.4 | |||||||||
Wholesale used vehicles sold | 31,852 | 31,287 | 1.8 | |||||||||
Total used | 97,106 | 93,792 | 3.5 | |||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 33,628 | $ | 33,112 | 1.6 | |||||||
Used vehicle retail | $ | 20,758 | $ | 20,566 | 0.9 | |||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 1,798 | $ | 1,953 | (7.9 | ) | ||||||
Used vehicle retail sales | 1,717 | 1,748 | (1.8 | ) | ||||||||
Used vehicle wholesale sales | 43 | 83 | (48.2 | ) | ||||||||
Total used | 1,168 | 1,193 | (2.1 | ) | ||||||||
Finance and insurance (per retail unit) | $ | 1,331 | $ | 1,215 | 9.5 | |||||||
OTHER: (2) | ||||||||||||
SG&A expenses | $ | 630,048 | $ | 598,533 | 5.3 | |||||||
SG&A as % revenues | 11.1 | 11.3 | ||||||||||
SG&A as % gross profit | 73.1 | 74.2 | ||||||||||
Operating margin % | 3.7 | 3.5 |
Group 1 Automotive, Inc. | |||||||||||
Reconciliation of Certain Non-GAAP Financial Measures - U.S. | |||||||||||
(Unaudited) | |||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||
Three Months Ended September 30, | |||||||||||
2013 | 2012 | % Change | |||||||||
SG&A RECONCILIATION: | |||||||||||
As reported | $ | 206,635 | $ | 200,980 | 2.8 | ||||||
Pre-tax adjustments: | |||||||||||
Catastrophic events | (258 | ) | — | ||||||||
Net gain on dealership dispositions | 1,373 | — | |||||||||
Severance paid | (256 | ) | — | ||||||||
Adjusted SG&A (1) | $ | 207,494 | $ | 200,980 | 3.2 | ||||||
SG&A AS % REVENUES: | |||||||||||
Unadjusted | 10.9 | 11.1 | |||||||||
Adjusted (1) | 11.0 | 11.1 | |||||||||
SG&A AS % GROSS PROFIT: | |||||||||||
Unadjusted | 73.7 | 74.0 | |||||||||
Adjusted (1) | 74.0 | 74.0 | |||||||||
OPERATING MARGIN %: | |||||||||||
Unadjusted | 3.4 | 3.5 | |||||||||
Adjusted (1),(2) | 3.4 | 3.5 | |||||||||
PRETAX MARGIN %: | |||||||||||
Unadjusted | 2.5 | 2.5 | |||||||||
Adjusted (1),(2) | 2.5 | 2.5 |
Nine Months Ended September 30, | |||||||||||
2013 | 2012 | % Change | |||||||||
SG&A RECONCILIATION: | |||||||||||
As reported | $ | 626,939 | $ | 593,874 | 5.6 | ||||||
Pre-tax adjustments: | |||||||||||
Acquisition costs | (5,159 | ) | — | ||||||||
Catastrophic events | (12,158 | ) | (2,650 | ) | |||||||
Net gain on dealership dispositions | 10,396 | — | |||||||||
Net gain on real estate transactions | — | 1,071 | |||||||||
Severance paid | (256 | ) | — | ||||||||
Lease termination | (200 | ) | — | ||||||||
Adjusted SG&A (1) | $ | 619,562 | $ | 592,295 | 4.6 | ||||||
SG&A AS % REVENUES: | |||||||||||
Unadjusted | 11.4 | 11.5 | |||||||||
Adjusted (1) | 11.3 | 11.5 | |||||||||
SG&A AS % GROSS PROFIT: | |||||||||||
Unadjusted | 74.3 | 75.0 | |||||||||
Adjusted (1) | 73.4 | 74.8 | |||||||||
OPERATING MARGIN %: | |||||||||||
Unadjusted | 3.5 | 3.4 | |||||||||
Adjusted (1),(2) | 3.7 | 3.5 | |||||||||
PRETAX MARGIN %: | |||||||||||
Unadjusted | 2.5 | 2.5 | |||||||||
Adjusted (1),(2) | 2.7 | 2.5 | |||||||||
(1) | We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items. These adjusted measures are not measures of financial performance under GAAP. As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures. We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations. | ||||||||||
(2) | Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $565 and $1,174 for the three and nine months ended September 30, 2013, and $187 for the nine months ended September 30, 2012. |
Group 1 Automotive, Inc. | |||||||||||
Reconciliation of Certain Non-GAAP Financial Measures - U.K. | |||||||||||
(Unaudited) | |||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||
Nine Months Ended September 30, | |||||||||||
2013 | 2012 | % Change | |||||||||
SG&A RECONCILIATION: | |||||||||||
As reported | $ | 54,262 | $ | 35,647 | 52.2 | ||||||
Pre-tax adjustments: | |||||||||||
Acquisition costs | (142 | ) | — | ||||||||
Adjusted SG&A (1) | $ | 54,120 | $ | 35,647 | 51.8 | ||||||
SG&A AS % REVENUES: | |||||||||||
Unadjusted | 8.8 | 9.4 | |||||||||
Adjusted (1) | 8.8 | 9.4 | |||||||||
SG&A AS % GROSS PROFIT: | |||||||||||
Unadjusted | 79.3 | 79.3 | |||||||||
Adjusted (1) | 79.1 | 79.3 | |||||||||
OPERATING MARGIN %: | |||||||||||
Unadjusted | 2.0 | 2.0 | |||||||||
Adjusted (1),(2) | 2.0 | 2.0 | |||||||||
PRETAX MARGIN %: | |||||||||||
Unadjusted | 1.7 | 1.7 | |||||||||
Adjusted (1),(2) | 1.7 | 1.7 | |||||||||
(1) | We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items. These adjusted measures are not measures of financial performance under GAAP. As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures. We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations. | ||||||||||
(2) | Excludes the impact of SG&A reconciling item above. |
Group 1 Automotive, Inc. | |||||
Reconciliation of Certain Non-GAAP Financial Measures - Brazil | |||||
(Unaudited) | |||||
(Dollars in thousands, except per share amounts) | |||||
Three Months Ended September 30, 2013 | |||||
SG&A RECONCILIATION: | |||||
As reported | $ | 20,572 | |||
Pre-tax adjustments: | |||||
Severance paid | (295 | ) | |||
Adjusted SG&A (1) | $ | 20,277 | |||
SG&A AS % REVENUES: | |||||
Unadjusted | 9.5 | ||||
Adjusted (1) | 9.4 | ||||
SG&A AS % GROSS PROFIT: | |||||
Unadjusted | 86.9 | ||||
Adjusted (1) | 85.6 | ||||
OPERATING MARGIN % | |||||
Unadjusted | 1.2 | ||||
Adjusted (1),(2) | 1.4 | ||||
PRETAX MARGIN %: | |||||
Unadjusted | 0.2 | ||||
Adjusted (1),(4) | 0.3 | ||||
Nine Months Ended September 30, 2013 (3) | |||||
SG&A RECONCILIATION: | |||||
As reported | $ | 50,254 | |||
Pre-tax adjustments: | |||||
Acquisition costs | (1,211 | ) | |||
Severance paid | (295 | ) | |||
Adjusted SG&A (1) | $ | 48,748 | |||
SG&A AS % REVENUES: | |||||
Unadjusted | 9.4 | ||||
Adjusted (1) | 9.1 | ||||
SG&A AS % GROSS PROFIT: | |||||
Unadjusted | 85.0 | ||||
Adjusted (1) | 82.5 | ||||
OPERATING MARGIN %: | |||||
Unadjusted | 1.5 | ||||
Adjusted (1),(2) | 1.7 | ||||
PRETAX MARGIN %: | |||||
Unadjusted | 0.4 | ||||
Adjusted (1),(4) | 0.9 |
(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) | Results are for the period from the date of acquisition (February 28, 2013) through September 30, 2013. | ||||
(4) | Excludes the impact of SG&A reconciling items above, as well as the other expense, net of $789, for the period from the date of acquisition (February 28, 2013) through September 30, 2013. |
Group 1 Automotive, Inc. | ||||||||||||
Reconciliation of Certain Non-GAAP Financial Measures - Consolidated | ||||||||||||
(Unaudited) | ||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||
Three Months Ended September 30, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
NET INCOME RECONCILIATION: | ||||||||||||
As reported | $ | 32,765 | $ | 31,335 | 4.6 | |||||||
After-tax adjustments: | ||||||||||||
Catastrophic events (3) | 158 | — | ||||||||||
Net gain on dealership dispositions (4) | (230 | ) | — | |||||||||
Non-cash asset impairment (6) | 349 | — | ||||||||||
Severance paid (11) | 454 | — | ||||||||||
Income tax effect of acquisition costs | (630 | ) | — | |||||||||
Adjusted net income (1) | $ | 32,866 | $ | 31,335 | 4.9 | |||||||
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION | ||||||||||||
Adjusted net income | $ | 32,866 | $ | 31,335 | 4.9 | |||||||
Less: Adjusted earnings allocated to participating securities | 1,324 | 1,641 | (19.3 | ) | ||||||||
Adjusted net income available to diluted common shares | $ | 31,542 | $ | 29,694 | 6.2 | |||||||
DILUTED INCOME PER COMMON SHARE RECONCILIATION: | ||||||||||||
As reported | $ | 1.19 | $ | 1.32 | (9.8 | ) | ||||||
After-tax adjustments: | ||||||||||||
Catastrophic events | 0.01 | — | ||||||||||
Net gain on dealership dispositions | (0.01 | ) | — | |||||||||
Non-cash asset impairment | 0.01 | — | ||||||||||
Severance paid | 0.02 | — | ||||||||||
Income tax effect of acquisition costs | (0.02 | ) | — | |||||||||
Adjusted diluted income per share (1) | $ | 1.20 | $ | 1.32 | (9.1 | ) | ||||||
SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 246,863 | $ | 216,082 | 14.2 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | (258 | ) | — | |||||||||
Net gain on dealership dispositions | 1,373 | — | ||||||||||
Severance paid | (551 | ) | — | |||||||||
Adjusted SG&A (1) | $ | 247,427 | $ | 216,082 | 14.5 | |||||||
SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 10.5 | 10.9 | ||||||||||
Adjusted (1) | 10.6 | 10.9 | ||||||||||
SG&A AS % GROSS PROFIT: | ||||||||||||
Unadjusted | 74.9 | 74.2 | ||||||||||
Adjusted (1) | 75.1 | 74.2 | ||||||||||
OPERATING MARGIN %: | ||||||||||||
Unadjusted | 3.1 | 3.4 | ||||||||||
Adjusted (1),(7) | 3.1 | 3.4 | ||||||||||
PRETAX MARGIN %: | ||||||||||||
Unadjusted | 2.2 | 2.5 | ||||||||||
Adjusted (1),(8) | 2.2 | 2.5 |
SAME STORE SG&A RECONCILIATION: | |||||||||||
As reported | $ | 214,526 | $ | 201,034 | 6.7 | ||||||
Pre-tax adjustments: | |||||||||||
Catastrophic events | (258 | ) | — | ||||||||
Severance paid | (71 | ) | — | ||||||||
Adjusted Same Store SG&A (1) | $ | 214,197 | $ | 201,034 | 6.5 | ||||||
SAME STORE SG&A AS % REVENUES: | |||||||||||
Unadjusted | 10.8 | 10.8 | |||||||||
Adjusted (1) | 10.8 | 10.8 | |||||||||
SAME STORE SG&A AS % GROSS PROFIT: | |||||||||||
Unadjusted | 73.8 | 73.0 | |||||||||
Adjusted (1) | 73.6 | 73.0 | |||||||||
SAME STORE OPERATING MARGIN %: | |||||||||||
Unadjusted | 3.4 | 3.6 | |||||||||
Adjusted (1),(9) | 3.4 | 3.6 |
Nine Months Ended September 30, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
NET INCOME RECONCILIATION: | ||||||||||||
As reported | $ | 92,271 | $ | 83,077 | 11.1 | |||||||
After-tax adjustments: | ||||||||||||
Acquisition costs (2) | 4,638 | — | ||||||||||
Catastrophic events (3) | 7,419 | 1,658 | ||||||||||
Net gain on dealership dispositions (4) | (5,500 | ) | — | |||||||||
Lease termination (5) | 124 | — | ||||||||||
Non-cash asset impairment (6) | 718 | 115 | ||||||||||
Net gain on real estate transactions (10) | — | (659 | ) | |||||||||
Severance paid (11) | 454 | — | ||||||||||
Income tax effect of non-deductible acquisition costs | 1,699 | — | ||||||||||
Adjusted net income (1) | $ | 101,823 | $ | 84,191 | 20.9 | |||||||
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION | ||||||||||||
Adjusted net income | $ | 101,823 | $ | 84,191 | 20.9 | |||||||
Less: Adjusted earnings allocated to participating securities | 4,241 | 4,432 | (4.3 | ) | ||||||||
Adjusted net income available to diluted common shares | $ | 97,582 | $ | 79,759 | 22.3 | |||||||
DILUTED INCOME PER COMMON SHARE RECONCILIATION: | ||||||||||||
As reported | $ | 3.52 | $ | 3.50 | 0.6 | |||||||
After-tax adjustments: | ||||||||||||
Acquisition costs | 0.17 | — | ||||||||||
Catastrophic events | 0.28 | 0.07 | ||||||||||
Net gain on dealership dispositions | (0.21 | ) | — | |||||||||
Lease termination | — | — | ||||||||||
Non-cash asset impairment | 0.03 | — | ||||||||||
Net gain on real estate transactions | — | (0.03 | ) | |||||||||
Severance paid | 0.02 | — | ||||||||||
Income tax effect of acquisition costs | 0.07 | — | ||||||||||
Adjusted diluted income per share (1) | $ | 3.88 | $ | 3.54 | 9.6 | |||||||
SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 731,455 | $ | 629,521 | 16.2 | |||||||
Pre-tax adjustments: | ||||||||||||
Acquisition costs | (6,512 | ) | — | |||||||||
Catastrophic events | (12,158 | ) | (2,650 | ) | ||||||||
Net gain on dealership dispositions | 10,396 | — | ||||||||||
Severance paid | (551 | ) | — | |||||||||
Lease termination | (200 | ) | — | |||||||||
Net gain on real estate transactions | — | 1,071 | ||||||||||
Adjusted SG&A (1) | $ | 722,430 | $ | 627,942 | 15.0 | |||||||
SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 11.0 | 11.4 | ||||||||||
Adjusted (1) | 10.9 | 11.3 | ||||||||||
SG&A AS % GROSS PROFIT: | ||||||||||||
Unadjusted | 75.3 | 75.2 | ||||||||||
Adjusted (1) | 74.4 | 75.0 | ||||||||||
OPERATING MARGIN %: | ||||||||||||
Unadjusted | 3.2 | 3.3 | ||||||||||
Adjusted (1),(7) | 3.3 | 3.4 | ||||||||||
PRETAX MARGIN %: | ||||||||||||
Unadjusted | 2.3 | 2.4 | ||||||||||
Adjusted (1),(8) | 2.5 | 2.4 |
SAME STORE SG&A RECONCILIATION: | |||||||||||
As reported | $ | 647,778 | $ | 601,687 | 7.7 | ||||||
Pre-tax adjustments: | |||||||||||
Acquisition costs | (5,301 | ) | — | ||||||||
Catastrophic events | (12,158 | ) | (2,650 | ) | |||||||
Severance paid | (71 | ) | — | ||||||||
Loss on real estate transaction | — | (504 | ) | ||||||||
Lease termination | (200 | ) | — | ||||||||
Adjusted Same Store SG&A (1) | $ | 630,048 | $ | 598,533 | 5.3 | ||||||
SAME STORE SG&A AS % REVENUES: | |||||||||||
Unadjusted | 11.4 | 11.3 | |||||||||
Adjusted (1) | 11.1 | 11.3 | |||||||||
SAME STORE SG&A AS % GROSS PROFIT: | |||||||||||
Unadjusted | 75.2 | 74.6 | |||||||||
Adjusted (1) | 73.1 | 74.2 | |||||||||
SAME STORE OPERATING MARGIN %: | |||||||||||
Unadjusted | 3.3 | 3.4 | |||||||||
Adjusted (1),(9) | 3.7 | 3.5 |
(1) | We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items. These adjusted measures are not measures of financial performance under GAAP. As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures. We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations. | |||||
(2) | Adjustment is net of tax benefit of $2,663 for the nine months ended September 30, 2013, calculated utilizing the applicable federal and state tax rates for the adjustment. | |||||
(3) | Adjustment is net of tax benefit of $100 and $4,739 for the three and nine months ended September 30, 2013, and $992 for the nine months ended September 30, 2012, respectively, calculated utilizing the applicable federal and state tax rates for the adjustment. | |||||
(4) | Adjustment is net of tax provision of $1,143 and $4,896 for the three and nine months ended September 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 nine months ended September 30, 2013, calculated utilizing the applicable federal and state tax rates for the adjustment. | |||||
(6) | Adjustment is net of tax benefit of $216 and $456 for the three and nine months ended September 30, 2013, and $72 for the nine months ended September 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 except three months ended September 30, 2012. | |||||
(8) | Excludes the impact of SG&A reconciling items above, non-cash asset impairment charges for all periods, as well as the other expense, net of $789, for the nine months ended September 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 $565 and $1,174 for the three and nine months ended September 30, 2013, and $187 for the nine months ended September 30, 2012. | |||||
(10) | Adjustment is net of tax provision of $412 for the nine months ended September 30, 2012, calculated utilizing the applicable federal and state tax rates for the adjustment. | |||||
(11) | Adjustment is net of tax benefit of $97 for the three and nine months ended September 30, 2013, calculated utilizing the applicable federal and state tax rates for the adjustment. |