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. | ||||
February 5, 2014 | By: | /s/ John C. Rickel | ||
Date | John C. Rickel, Senior Vice President and Chief Financial Officer |
▪ | Total gross profit grew 14.7 percent on 17.6 percent higher revenues of $2.3 billion. |
▪ | New vehicle revenues increased 16.9 percent on 17.4 percent more unit sales. New vehicle gross profit increased 14.6 percent. |
▪ | Retail used vehicle gross profit increased 7.8 percent on 18.9 percent higher revenues, as the Company retailed 18.3 percent more units. |
▪ | Parts and service gross profit increased 17.1 percent on 15.9 percent higher revenues. Same Store parts and service revenues grew 7.5 percent. |
▪ | Same Store finance and insurance (F&I) gross profit per retail unit rose 7.4 percent or $96 to $1,388. Within this growth, U.S. Same Store F&I gross profit per retail unit improved $110 to $1,436. |
▪ | SG&A expenses (adjusted) as a percent of gross profit improved 40 basis points to 76.3 percent. Same Store SG&A (adjusted) as a percent of gross profit improved 70 basis points to 74.9 percent. |
▪ | Operating margin (adjusted) on a Same Store basis improved to 3.2 percent. |
▪ | Total gross profit grew 15.7 percent on 19.3 percent higher revenues of $8.9 billion. |
▪ | New vehicle gross profit increased 17.2 percent on 21.8 percent higher revenues, as the Company retailed 155,866 new vehicles in 2013. |
▪ | Retail used vehicle gross profit was 10.2 percent higher on a 16.1 percent revenue increase, as the Company retailed 98,813 used units in 2013. |
▪ | Parts and service gross profit rose 15.0 percent on 14.8 percent higher revenues. |
▪ | Same Store parts and service revenue grew 7.4 percent. |
▪ | F&I revenues rose 19.8 percent on 19.1 percent more retail unit sales; gross profit per retail unit was a record-setting $1,223. Same Store F&I profit per retail unit grew to a record $1,345, an increase of $111. |
▪ | SG&A expenses (adjusted) as a percent of gross profit improved 60 basis points to 74.8 percent, while Same Store SG&A (adjusted) as a percent of gross profit improved 90 basis points to 73.6 percent. |
▪ | Operating margin (adjusted) on a Same Store basis improved 10 basis points to 3.5 percent. |
▪ | United States: |
▪ | United Kingdom: |
▪ | Brazil: |
Group 1 Automotive, Inc. | ||||||||||||
Consolidated Statements of Operations | ||||||||||||
(Unaudited) | ||||||||||||
(In thousands, except per share amounts) | ||||||||||||
Three Months Ended December 31, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 1,351,800 | $ | 1,156,507 | 16.9 | |||||||
Used vehicle retail sales | 503,397 | 423,315 | 18.9 | |||||||||
Used vehicle wholesale sales | 88,518 | 69,724 | 27.0 | |||||||||
Parts and service | 256,909 | 221,666 | 15.9 | |||||||||
Finance and insurance | 78,868 | 67,745 | 16.4 | |||||||||
Total revenues | 2,279,492 | 1,938,957 | 17.6 | |||||||||
COST OF SALES: | ||||||||||||
New vehicle retail sales | 1,278,221 | 1,092,280 | 17.0 | |||||||||
Used vehicle retail sales | 467,781 | 390,284 | 19.9 | |||||||||
Used vehicle wholesale sales | 90,113 | 69,664 | 29.4 | |||||||||
Parts and service | 122,056 | 106,476 | 14.6 | |||||||||
Total cost of sales | 1,958,171 | 1,658,704 | 18.1 | |||||||||
GROSS PROFIT | 321,321 | 280,253 | 14.7 | |||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 245,401 | 218,925 | 12.1 | |||||||||
DEPRECIATION AND AMORTIZATION EXPENSE | 9,436 | 8,460 | 11.5 | |||||||||
ASSET IMPAIRMENTS | 5,368 | 6,988 | (23.2 | ) | ||||||||
OPERATING INCOME | 61,116 | 45,880 | 33.2 | |||||||||
OTHER EXPENSE: | ||||||||||||
Floorplan interest expense | (10,740 | ) | (8,372 | ) | 28.3 | |||||||
Other interest expense, net | (10,188 | ) | (9,616 | ) | 5.9 | |||||||
INCOME BEFORE INCOME TAXES | 40,188 | 27,892 | 44.1 | |||||||||
PROVISION FOR INCOME TAXES | (18,467 | ) | (10,760 | ) | 71.6 | |||||||
NET INCOME | $ | 21,721 | $ | 17,132 | 26.8 | |||||||
Earnings allocated to participating securities | $ | (794 | ) | $ | (758 | ) | 4.7 | |||||
Earnings available to diluted common shares | $ | 20,927 | $ | 16,374 | 27.8 | |||||||
DILUTED EARNINGS PER SHARE | $ | 0.81 | $ | 0.70 | 15.7 | |||||||
Weighted average dilutive common shares outstanding | 25,792 | 23,244 | 11.0 | |||||||||
Weighted average participating securities | 983 | 1,091 | (9.9 | ) | ||||||||
Total weighted average shares outstanding | 26,775 | 24,335 | 10.0 |
Twelve Months Ended December 31, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 5,224,921 | $ | 4,291,098 | 21.8 | |||||||
Used vehicle retail sales | 2,039,428 | 1,756,918 | 16.1 | |||||||||
Used vehicle wholesale sales | 332,185 | 288,139 | 15.3 | |||||||||
Parts and service | 1,010,685 | 880,070 | 14.8 | |||||||||
Finance and insurance | 311,362 | 259,875 | 19.8 | |||||||||
Total revenues | 8,918,581 | 7,476,100 | 19.3 | |||||||||
COST OF SALES: | ||||||||||||
New vehicle retail sales | 4,935,046 | 4,043,659 | 22.0 | |||||||||
Used vehicle retail sales | 1,878,549 | 1,610,912 | 16.6 | |||||||||
Used vehicle wholesale sales | 332,380 | 285,695 | 16.3 | |||||||||
Parts and service | 480,060 | 418,582 | 14.7 | |||||||||
Total cost of sales | 7,626,035 | 6,358,848 | 19.9 | |||||||||
GROSS PROFIT | 1,292,546 | 1,117,252 | 15.7 | |||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 976,856 | 848,446 | 15.1 | |||||||||
DEPRECIATION AND AMORTIZATION EXPENSE | 35,826 | 31,534 | 13.6 | |||||||||
ASSET IMPAIRMENTS | 6,542 | 7,276 | (10.1 | ) | ||||||||
OPERATING INCOME | 273,322 | 229,996 | 18.8 | |||||||||
OTHER EXPENSE: | ||||||||||||
Floorplan interest expense | (41,667 | ) | (31,796 | ) | 31.0 | |||||||
Other interest expense, net | (38,971 | ) | (37,465 | ) | 4.0 | |||||||
Other expense, net | (789 | ) | — | 100.0 | ||||||||
INCOME BEFORE INCOME TAXES | 191,895 | 160,735 | 19.4 | |||||||||
PROVISION FOR INCOME TAXES | (77,903 | ) | (60,526 | ) | 28.7 | |||||||
NET INCOME | $ | 113,992 | $ | 100,209 | 13.8 | |||||||
Earnings allocated to participating securities | $ | (4,599 | ) | $ | (5,062 | ) | (9.1 | ) | ||||
Earnings available to diluted common shares | $ | 109,393 | $ | 95,147 | 15.0 | |||||||
DILUTED EARNINGS PER SHARE | $ | 4.32 | $ | 4.19 | 3.1 | |||||||
Weighted average dilutive common shares outstanding | 25,314 | 22,688 | 11.6 | |||||||||
Weighted average participating securities | 1,067 | 1,215 | (12.2 | ) | ||||||||
Total weighted average shares outstanding | 26,381 | 23,903 | 10.4 |
Group 1 Automotive, Inc. | ||||||||||||
Consolidated Balance Sheets | ||||||||||||
(Dollars in thousands) | ||||||||||||
December 31, | December 31, | |||||||||||
2013 | 2012 | % Change | ||||||||||
(Unaudited) | ||||||||||||
ASSETS: | ||||||||||||
CURRENT ASSETS: | ||||||||||||
Cash and cash equivalents | $ | 20,215 | $ | 4,650 | 334.7 | |||||||
Contracts in transit and vehicle receivables, net | 225,156 | 204,396 | 10.2 | |||||||||
Accounts and notes receivable, net | 135,058 | 111,228 | 21.4 | |||||||||
Inventories, net | 1,542,318 | 1,194,288 | 29.1 | |||||||||
Deferred income taxes | 21,150 | 19,750 | 7.1 | |||||||||
Prepaid expenses and other current assets | 24,041 | 31,869 | (24.6 | ) | ||||||||
Total current assets | 1,967,938 | 1,566,181 | 25.7 | |||||||||
PROPERTY AND EQUIPMENT, net | 796,356 | 667,768 | 19.3 | |||||||||
GOODWILL AND INTANGIBLE FRANCHISE RIGHTS | 1,038,808 | 778,442 | 33.4 | |||||||||
OTHER ASSETS | 16,376 | 10,624 | 54.1 | |||||||||
Total assets | $ | 3,819,478 | $ | 3,023,015 | 26.3 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY: | ||||||||||||
CURRENT LIABILITIES: | ||||||||||||
Floorplan notes payable - credit facility and other | $ | 1,143,104 | $ | 968,959 | 18.0 | |||||||
Offset account related to floorplan notes payable - credit facility | (56,198 | ) | (112,261 | ) | (49.9 | ) | ||||||
Floorplan notes payable - manufacturer affiliates | 346,572 | 211,965 | 63.5 | |||||||||
Current maturities of long-term debt and short-term financing | 36,225 | 31,358 | 15.5 | |||||||||
Accounts payable | 254,930 | 167,439 | 52.3 | |||||||||
Accrued expenses | 140,543 | 128,118 | 9.7 | |||||||||
Total current liabilities | 1,865,176 | 1,395,578 | 33.6 | |||||||||
2.25% CONVERTIBLE SENIOR NOTES (aggregate principal of $182,753 at December 31, 2013 and December 31, 2012) | 160,334 | 152,363 | 5.2 | |||||||||
3.00% CONVERTIBLE SENIOR NOTES (aggregate principal of $115,000 at December 31, 2013 and December 31, 2012) | 84,305 | 80,706 | 4.5 | |||||||||
MORTGAGE FACILITY, net of current maturities | 64,271 | 53,643 | 19.8 | |||||||||
ACQUISITION LINE | 60,000 | — | 100.0 | |||||||||
OTHER REAL ESTATE RELATED AND LONG-TERM DEBT, net of current maturities | 250,958 | 232,285 | 8.0 | |||||||||
CAPITAL LEASE OBLIGATIONS RELATED TO REAL ESTATE, net of current maturities | 43,821 | 36,019 | 21.7 | |||||||||
DEFERRED INCOME TAXES | 152,291 | 94,130 | 61.8 | |||||||||
LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES | 26,078 | 43,089 | (39.5 | ) | ||||||||
OTHER LIABILITIES | 47,975 | 42,413 | 13.1 | |||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
TEMPORARY EQUITY - REDEEMABLE EQUITY PORTION OF THE 3.00% CONVERTIBLE SENIOR NOTES | 29,094 | 32,505 | (10.5 | ) | ||||||||
STOCKHOLDERS' EQUITY: | ||||||||||||
Common stock | 257 | 258 | (0.4 | ) | ||||||||
Additional paid-in capital | 368,641 | 332,836 | 10.8 | |||||||||
Retained earnings | 776,101 | 677,864 | 14.5 | |||||||||
Accumulated other comprehensive loss | (51,677 | ) | (33,057 | ) | 56.3 | |||||||
Treasury stock | (58,147 | ) | (117,617 | ) | (50.6 | ) | ||||||
Total stockholders' equity | 1,035,175 | 860,284 | 20.3 | |||||||||
Total liabilities and stockholders' equity | $ | 3,819,478 | $ | 3,023,015 | 26.3 |
Group 1 Automotive, Inc. | ||||||||||||||
Additional Information - Consolidated | ||||||||||||||
(Unaudited) | ||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||
December 31, | December 31, | |||||||||||||
2013 (%) | 2012 (%) | 2013 (%) | 2012 (%) | |||||||||||
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX: | ||||||||||||||
Region | Geographic Market | |||||||||||||
East | Massachusetts | 4.6 | 6.6 | 5.6 | 9.1 | |||||||||
New Jersey | 4.2 | 5.4 | 4.2 | 5.1 | ||||||||||
Georgia | 3.4 | 4.0 | 3.5 | 3.6 | ||||||||||
New York | 2.8 | 4.2 | 2.7 | 3.3 | ||||||||||
New Hampshire | 2.1 | 2.6 | 2.3 | 2.8 | ||||||||||
Louisiana | 2.1 | 2.5 | 2.3 | 2.5 | ||||||||||
South Carolina | 1.8 | 2.0 | 1.6 | 1.8 | ||||||||||
Mississippi | 1.3 | 1.8 | 1.5 | 2.0 | ||||||||||
Florida | 1.3 | 1.9 | 1.3 | 1.4 | ||||||||||
Alabama | 0.8 | 1.0 | 0.8 | 1.0 | ||||||||||
Maryland | 0.6 | 0.8 | 0.6 | 0.7 | ||||||||||
25.0 | 32.8 | 26.4 | 33.3 | |||||||||||
West | Texas | 34.5 | 36.8 | 32.9 | 36.7 | |||||||||
California | 9.2 | 14.9 | 10.3 | 14.6 | ||||||||||
Oklahoma | 7.3 | 7.5 | 7.7 | 7.8 | ||||||||||
Kansas | 2.5 | 1.5 | 2.5 | 1.4 | ||||||||||
Louisiana | 0.7 | — | 0.4 | — | ||||||||||
54.2 | 60.7 | 53.8 | 60.5 | |||||||||||
International | Brazil | 13.2 | — | 11.0 | — | |||||||||
United Kingdom | 7.6 | 6.5 | 8.8 | 6.2 | ||||||||||
100.0 | 100.0 | 100.0 | 100.0 | |||||||||||
NEW VEHICLE UNIT SALES BRAND MIX: | ||||||||||||||
Toyota/Scion/Lexus | 25.4 | 28.6 | 26.6 | 30.3 | ||||||||||
Honda/Acura | 12.9 | 11.0 | 12.3 | 11.1 | ||||||||||
BMW/MINI | 12.1 | 13.0 | 11.1 | 11.3 | ||||||||||
Ford/Lincoln | 11.1 | 9.5 | 11.6 | 9.3 | ||||||||||
Nissan/Infiniti | 9.9 | 10.0 | 10.2 | 11.4 | ||||||||||
Mercedes Benz/smart/Sprinter | 5.5 | 6.7 | 4.5 | 5.1 | ||||||||||
Volkswagen/Audi/Porsche | 5.5 | 6.8 | 6.3 | 6.6 | ||||||||||
Chevrolet/GMC/Buick/Cadillac | 5.0 | 5.2 | 4.8 | 5.6 | ||||||||||
Hyundai/Kia | 4.5 | 3.5 | 4.6 | 3.1 | ||||||||||
Chrysler/Dodge/Jeep/RAM | 3.8 | 4.3 | 4.0 | 4.4 | ||||||||||
Other | 4.3 | 1.4 | 4.0 | 1.8 | ||||||||||
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 December 31, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 1,088,452 | $ | 1,078,756 | 0.9 | |||||||
Used vehicle retail sales | 417,443 | 387,303 | 7.8 | |||||||||
Used vehicle wholesale sales | 62,768 | 57,421 | 9.3 | |||||||||
Total used | 480,211 | 444,724 | 8.0 | |||||||||
Parts and service | 219,633 | 207,449 | 5.9 | |||||||||
Finance and insurance | 72,225 | 65,042 | 11.0 | |||||||||
Total | $ | 1,860,521 | $ | 1,795,971 | 3.6 | |||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 5.2 | 5.3 | ||||||||||
Used vehicle retail sales | 7.2 | 8.0 | ||||||||||
Used vehicle wholesale sales | (2.9 | ) | 0.4 | |||||||||
Total used | 5.9 | 7.0 | ||||||||||
Parts and service | 52.7 | 52.3 | ||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||
Total | 14.7 | 14.6 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 56,349 | $ | 57,695 | (2.3 | ) | ||||||
Used vehicle retail sales | 30,156 | 30,808 | (2.1 | ) | ||||||||
Used vehicle wholesale sales | (1,830 | ) | 237 | (872.2 | ) | |||||||
Total used | 28,326 | 31,045 | (8.8 | ) | ||||||||
Parts and service | 115,831 | 108,442 | 6.8 | |||||||||
Finance and insurance | 72,225 | 65,042 | 11.0 | |||||||||
Total | $ | 272,731 | $ | 262,224 | 4.0 | |||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 30,836 | 31,010 | (0.6 | ) | ||||||||
Retail used vehicles sold | 20,115 | 18,972 | 6.0 | |||||||||
Wholesale used vehicles sold | 10,069 | 9,207 | 9.4 | |||||||||
Total used | 30,184 | 28,179 | 7.1 | |||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 35,298 | $ | 34,787 | 1.5 | |||||||
Used vehicle retail | $ | 20,753 | $ | 20,414 | 1.7 | |||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 1,827 | $ | 1,861 | (1.8 | ) | ||||||
Used vehicle retail sales | 1,499 | 1,624 | (7.7 | ) | ||||||||
Used vehicle wholesale sales | (182 | ) | 26 | (800.0 | ) | |||||||
Total used | 938 | 1,102 | (14.9 | ) | ||||||||
Finance and insurance (per retail unit) | $ | 1,418 | $ | 1,301 | 9.0 | |||||||
OTHER: (1) | ||||||||||||
SG&A expenses | $ | 202,951 | $ | 199,532 | 1.7 | |||||||
SG&A as % revenues | 10.9 | 11.1 | ||||||||||
SG&A as % gross profit | 74.4 | 76.1 | ||||||||||
Operating margin % | 3.3 | 3.1 | ||||||||||
Pretax margin % | 2.3 | 2.1 | ||||||||||
INTEREST EXPENSE: | ||||||||||||
Floorplan interest expense | $ | (8,761 | ) | $ | (8,095 | ) | 8.2 | |||||
Floorplan assistance | 9,994 | 8,639 | 15.7 | |||||||||
Net floorplan income | $ | 1,233 | $ | 544 | 126.7 | |||||||
Other interest expense, net | $ | (9,991 | ) | $ | (9,425 | ) | 6.0 |
Twelve Months Ended December 31, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 4,220,913 | $ | 4,004,211 | 5.4 | |||||||
Used vehicle retail sales | 1,728,072 | 1,623,588 | 6.4 | |||||||||
Used vehicle wholesale sales | 236,995 | 240,789 | (1.6 | ) | ||||||||
Total used | 1,965,067 | 1,864,377 | 5.4 | |||||||||
Parts and service | 878,951 | 833,964 | 5.4 | |||||||||
Finance and insurance | 288,409 | 251,458 | 14.7 | |||||||||
Total | $ | 7,353,340 | $ | 6,954,010 | 5.7 | |||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 5.2 | 5.6 | ||||||||||
Used vehicle retail sales | 8.2 | 8.5 | ||||||||||
Used vehicle wholesale sales | (0.4 | ) | 1.2 | |||||||||
Total used | 7.2 | 7.5 | ||||||||||
Parts and service | 53.1 | 52.4 | ||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||
Total | 15.2 | 15.2 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 220,344 | $ | 225,459 | (2.3 | ) | ||||||
Used vehicle retail sales | 142,053 | 137,306 | 3.5 | |||||||||
Used vehicle wholesale sales | (830 | ) | 2,814 | (129.5 | ) | |||||||
Total used | 141,223 | 140,120 | 0.8 | |||||||||
Parts and service | 466,439 | 437,233 | 6.7 | |||||||||
Finance and insurance | 288,409 | 251,458 | 14.7 | |||||||||
Total | $ | 1,116,415 | $ | 1,054,270 | 5.9 | |||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 125,069 | 120,535 | 3.8 | |||||||||
Retail used vehicles sold | 85,365 | 80,714 | 5.8 | |||||||||
Wholesale used vehicles sold | 40,121 | 39,056 | 2.7 | |||||||||
Total used | 125,486 | 119,770 | 4.8 | |||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 33,749 | $ | 33,220 | 1.6 | |||||||
Used vehicle retail | $ | 20,243 | $ | 20,115 | 0.6 | |||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 1,762 | $ | 1,870 | (5.8 | ) | ||||||
Used vehicle retail sales | 1,664 | 1,701 | (2.2 | ) | ||||||||
Used vehicle wholesale sales | (21 | ) | 72 | (129.2 | ) | |||||||
Total used | 1,125 | 1,170 | (3.8 | ) | ||||||||
Finance and insurance (per retail unit) | $ | 1,371 | $ | 1,249 | 9.8 | |||||||
OTHER: (1) | ||||||||||||
SG&A expenses | $ | 822,513 | $ | 791,827 | 3.9 | |||||||
SG&A as % revenues | 11.2 | 11.4 | ||||||||||
SG&A as % gross profit | 73.7 | 75.1 | ||||||||||
Operating margin % | 3.6 | 3.4 | ||||||||||
Pretax margin % | 2.6 | 2.4 | ||||||||||
INTEREST EXPENSE: | ||||||||||||
Floorplan interest expense | $ | (33,789 | ) | $ | (30,736 | ) | 9.9 | |||||
Floorplan assistance | 38,285 | 33,915 | 12.9 | |||||||||
Net floorplan income | $ | 4,496 | $ | 3,179 | 41.4 | |||||||
Other interest expense, net | $ | (37,983 | ) | $ | (36,831 | ) | 3.1 |
Group 1 Automotive, Inc. | ||||||||||||
Additional Information - U.K. | ||||||||||||
(Unaudited) | ||||||||||||
(Dollars in thousands, except per unit amounts) | ||||||||||||
Three Months Ended December 31, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 99,499 | $ | 77,751 | 28.0 | |||||||
Used vehicle retail sales | 58,689 | 36,012 | 63.0 | |||||||||
Used vehicle wholesale sales | 17,395 | 12,303 | 41.4 | |||||||||
Total used | 76,084 | 48,315 | 57.5 | |||||||||
Parts and service | 18,292 | 14,217 | 28.7 | |||||||||
Finance and insurance | 3,486 | 2,703 | 29.0 | |||||||||
Total | $ | 197,361 | $ | 142,986 | 38.0 | |||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 6.8 | 8.4 | ||||||||||
Used vehicle retail sales | 7.4 | 6.2 | ||||||||||
Used vehicle wholesale sales | (0.6 | ) | (1.4 | ) | ||||||||
Total used | 5.5 | 4.2 | ||||||||||
Parts and service | 56.2 | 47.5 | ||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||
Total | 12.6 | 12.6 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 6,801 | $ | 6,532 | 4.1 | |||||||
Used vehicle retail sales | 4,334 | 2,223 | 95.0 | |||||||||
Used vehicle wholesale sales | (113 | ) | (177 | ) | (36.2 | ) | ||||||
Total used | 4,221 | 2,046 | 106.3 | |||||||||
Parts and service | 10,285 | 6,748 | 52.4 | |||||||||
Finance and insurance | 3,486 | 2,703 | 29.0 | |||||||||
Total | $ | 24,793 | $ | 18,029 | 37.5 | |||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 2,961 | 2,154 | 37.5 | |||||||||
Retail used vehicles sold | 2,347 | 1,208 | 94.3 | |||||||||
Wholesale used vehicles sold | 1,963 | 1,262 | 55.5 | |||||||||
Total used | 4,310 | 2,470 | 74.5 | |||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 33,603 | $ | 36,096 | (6.9 | ) | ||||||
Used vehicle retail | $ | 25,006 | $ | 29,811 | (16.1 | ) | ||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 2,297 | $ | 3,032 | (24.2 | ) | ||||||
Used vehicle retail sales | 1,847 | 1,840 | 0.4 | |||||||||
Used vehicle wholesale sales | (58 | ) | (140 | ) | (58.6 | ) | ||||||
Total used | 979 | 828 | 18.2 | |||||||||
Finance and insurance (per retail unit) | $ | 657 | $ | 804 | (18.3 | ) | ||||||
OTHER: (1) | ||||||||||||
SG&A expenses | $ | 20,516 | $ | 15,363 | 33.5 | |||||||
SG&A as % revenues | 10.4 | 10.7 | ||||||||||
SG&A as % gross profit | 82.7 | 85.2 | ||||||||||
Operating margin % | 1.8 | 1.4 | ||||||||||
Pretax margin % | 1.4 | 1.1 | ||||||||||
INTEREST EXPENSE: | ||||||||||||
Floorplan interest expense | $ | (437 | ) | $ | (277 | ) | 57.8 | |||||
Floorplan assistance | 147 | — | 100.0 | |||||||||
Net floorplan expense | $ | (290 | ) | $ | (277 | ) | 4.7 | |||||
Other interest expense, net | $ | (358 | ) | $ | (191 | ) | 87.4 |
Twelve Months Ended December 31, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 441,537 | $ | 286,887 | 53.9 | |||||||
Used vehicle retail sales | 221,590 | 133,330 | 66.2 | |||||||||
Used vehicle wholesale sales | 66,077 | 47,350 | 39.6 | |||||||||
Total used | 287,667 | 180,680 | 59.2 | |||||||||
Parts and service | 67,557 | 46,106 | 46.5 | |||||||||
Finance and insurance | 14,028 | 8,417 | 66.7 | |||||||||
Total | $ | 810,789 | $ | 522,090 | 55.3 | |||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 6.4 | 7.7 | ||||||||||
Used vehicle retail sales | 6.5 | 6.5 | ||||||||||
Used vehicle wholesale sales | (1.3 | ) | (0.8 | ) | ||||||||
Total used | 4.7 | 4.6 | ||||||||||
Parts and service | 55.0 | 52.6 | ||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||
Total | 11.5 | 12.1 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 28,442 | $ | 21,980 | 29.4 | |||||||
Used vehicle retail sales | 14,451 | 8,700 | 66.1 | |||||||||
Used vehicle wholesale sales | (856 | ) | (370 | ) | 131.4 | |||||||
Total used | 13,595 | 8,330 | 63.2 | |||||||||
Parts and service | 37,156 | 24,255 | 53.2 | |||||||||
Finance and insurance | 14,028 | 8,417 | 66.7 | |||||||||
Total | $ | 93,221 | $ | 62,982 | 48.0 | |||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 13,699 | 8,015 | 70.9 | |||||||||
Retail used vehicles sold | 9,109 | 4,652 | 95.8 | |||||||||
Wholesale used vehicles sold | 7,735 | 4,700 | 64.6 | |||||||||
Total used | 16,844 | 9,352 | 80.1 | |||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 32,231 | $ | 35,794 | (10.0 | ) | ||||||
Used vehicle retail | $ | 24,326 | $ | 28,661 | (15.1 | ) | ||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 2,076 | $ | 2,742 | (24.3 | ) | ||||||
Used vehicle retail sales | 1,586 | 1,870 | (15.2 | ) | ||||||||
Used vehicle wholesale sales | (111 | ) | (79 | ) | 40.5 | |||||||
Total used | 807 | 891 | (9.4 | ) | ||||||||
Finance and insurance (per retail unit) | $ | 615 | $ | 664 | (7.4 | ) | ||||||
OTHER: (1) | ||||||||||||
SG&A expenses | $ | 74,636 | $ | 51,010 | 46.3 | |||||||
SG&A as % revenues | 9.2 | 9.8 | ||||||||||
SG&A as % gross profit | 80.1 | 81.0 | ||||||||||
Operating margin % | 2.0 | 1.8 | ||||||||||
Pretax margin % | 1.6 | 1.5 | ||||||||||
INTEREST EXPENSE: | ||||||||||||
Floorplan interest expense | $ | (1,589 | ) | $ | (1,060 | ) | 49.9 | |||||
Floorplan assistance | 258 | — | 100.0 | |||||||||
Net floorplan expense | $ | (1,331 | ) | $ | (1,060 | ) | 25.6 | |||||
Other interest expense, net | $ | (1,157 | ) | $ | (634 | ) | 82.5 |
Group 1 Automotive, Inc. | |||||||||
Additional Information - Brazil | |||||||||
(Unaudited) | |||||||||
(Dollars in thousands, except per unit amounts) | |||||||||
Three Months Ended December 31, 2013 | Twelve Months Ended December 31, 2013 (2) | ||||||||
REVENUES: | |||||||||
New vehicle retail sales | $ | 163,849 | $ | 562,471 | |||||
Used vehicle retail sales | 27,265 | 89,766 | |||||||
Used vehicle wholesale sales | 8,355 | 29,113 | |||||||
Total used | 35,620 | 118,879 | |||||||
Parts and service | 18,984 | 64,177 | |||||||
Finance and insurance | 3,157 | 8,925 | |||||||
Total | $ | 221,610 | $ | 754,452 | |||||
GROSS MARGIN %: | |||||||||
New vehicle retail sales | 6.4 | 7.3 | |||||||
Used vehicle retail sales | 4.1 | 4.9 | |||||||
Used vehicle wholesale sales | 4.2 | 5.1 | |||||||
Total used | 4.1 | 4.9 | |||||||
Parts and service | 46.0 | 42.1 | |||||||
Finance and insurance | 100.0 | 100.0 | |||||||
Total | 10.7 | 11.0 | |||||||
GROSS PROFIT: | |||||||||
New vehicle retail sales | $ | 10,429 | $ | 41,089 | |||||
Used vehicle retail sales | 1,126 | 4,375 | |||||||
Used vehicle wholesale sales | 348 | 1,491 | |||||||
Total used | 1,474 | 5,866 | |||||||
Parts and service | 8,737 | 27,030 | |||||||
Finance and insurance | 3,157 | 8,925 | |||||||
Total | $ | 23,797 | $ | 82,910 | |||||
UNITS SOLD: | |||||||||
Retail new vehicles sold | 5,131 | 17,098 | |||||||
Retail used vehicles sold | 1,420 | 4,339 | |||||||
Wholesale used vehicles sold | 852 | 2,880 | |||||||
Total used | 2,272 | 7,219 | |||||||
AVERAGE RETAIL SALES PRICE: | |||||||||
New vehicle retail | $ | 31,933 | $ | 32,897 | |||||
Used vehicle retail | $ | 19,201 | $ | 20,688 | |||||
GROSS PROFIT PER UNIT SOLD: | |||||||||
New vehicle retail sales | $ | 2,033 | $ | 2,403 | |||||
Used vehicle retail sales | 793 | 1,008 | |||||||
Used vehicle wholesale sales | 408 | 518 | |||||||
Total used | 649 | 813 | |||||||
Finance and insurance (per retail unit) | $ | 482 | $ | 416 | |||||
OTHER: | |||||||||
SG&A expenses | $ | 21,549 | $ | 70,297 | |||||
SG&A as % revenues | 9.7 | 9.3 | |||||||
SG&A as % gross profit | 90.6 | 84.8 | |||||||
Operating margin % | 0.8 | 1.5 | |||||||
Pretax margin % | 0.2 | 0.7 | |||||||
INTEREST EXPENSE: | |||||||||
Floorplan interest expense | $ | (1,542 | ) | $ | (6,289 | ) | |||
Floorplan assistance | — | — | |||||||
Net floorplan expense | $ | (1,542 | ) | $ | (6,289 | ) | |||
Other interest income, net | $ | 161 | $ | 169 |
(1) These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for the description of aforementioned adjustments. | |||
(2) Results are for the period from the date of acquisition (February 28, 2013) through December 31, 2013. |
Group 1 Automotive, Inc. | ||||||||||||
Additional Information - Consolidated | ||||||||||||
(Unaudited) | ||||||||||||
(Dollars in thousands, except per unit amounts) | ||||||||||||
Three Months Ended December 31, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 1,351,800 | $ | 1,156,507 | 16.9 | |||||||
Used vehicle retail sales | 503,397 | 423,315 | 18.9 | |||||||||
Used vehicle wholesale sales | 88,518 | 69,724 | 27.0 | |||||||||
Total used | 591,915 | 493,039 | 20.1 | |||||||||
Parts and service | 256,909 | 221,666 | 15.9 | |||||||||
Finance and insurance | 78,868 | 67,745 | 16.4 | |||||||||
Total | $ | 2,279,492 | $ | 1,938,957 | 17.6 | |||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 5.4 | 5.6 | ||||||||||
Used vehicle retail sales | 7.1 | 7.8 | ||||||||||
Used vehicle wholesale sales | (1.8 | ) | 0.1 | |||||||||
Total used | 5.7 | 6.7 | ||||||||||
Parts and service | 52.5 | 52.0 | ||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||
Total | 14.1 | 14.5 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 73,579 | $ | 64,227 | 14.6 | |||||||
Used vehicle retail sales | 35,616 | 33,031 | 7.8 | |||||||||
Used vehicle wholesale sales | (1,595 | ) | 60 | (2,758.3 | ) | |||||||
Total used | 34,021 | 33,091 | 2.8 | |||||||||
Parts and service | 134,853 | 115,190 | 17.1 | |||||||||
Finance and insurance | 78,868 | 67,745 | 16.4 | |||||||||
Total | $ | 321,321 | $ | 280,253 | 14.7 | |||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 38,928 | 33,164 | 17.4 | |||||||||
Retail used vehicles sold | 23,882 | 20,180 | 18.3 | |||||||||
Wholesale used vehicles sold | 12,884 | 10,469 | 23.1 | |||||||||
Total used | 36,766 | 30,649 | 20.0 | |||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 34,726 | $ | 34,872 | (0.4 | ) | ||||||
Used vehicle retail | $ | 21,079 | $ | 20,977 | 0.5 | |||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 1,890 | $ | 1,937 | (2.4 | ) | ||||||
Used vehicle retail sales | 1,491 | 1,637 | (8.9 | ) | ||||||||
Used vehicle wholesale sales | (124 | ) | 6 | (2,166.7 | ) | |||||||
Total used | 925 | 1,080 | (14.4 | ) | ||||||||
Finance and insurance (per retail unit) | $ | 1,256 | $ | 1,270 | (1.1 | ) | ||||||
OTHER: (1) | ||||||||||||
SG&A expenses | $ | 245,016 | $ | 214,895 | 14.0 | |||||||
SG&A as % revenues | 10.7 | 11.1 | ||||||||||
SG&A as % gross profit | 76.3 | 76.7 | ||||||||||
Operating margin % | 2.9 | 2.9 | ||||||||||
Pretax margin % | 2.0 | 2.0 | ||||||||||
INTEREST EXPENSE: | ||||||||||||
Floorplan interest expense | $ | (10,740 | ) | $ | (8,372 | ) | 28.3 | |||||
Floorplan assistance | 10,141 | 8,639 | 17.4 | |||||||||
Net floorplan income (expense) | $ | (599 | ) | $ | 267 | (324.3 | ) | |||||
Other interest expense, net | $ | (10,188 | ) | $ | (9,616 | ) | 5.9 |
Twelve Months Ended December 31, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 5,224,921 | $ | 4,291,098 | 21.8 | |||||||
Used vehicle retail sales | 2,039,428 | 1,756,918 | 16.1 | |||||||||
Used vehicle wholesale sales | 332,185 | 288,139 | 15.3 | |||||||||
Total used | 2,371,613 | 2,045,057 | 16.0 | |||||||||
Parts and service | 1,010,685 | 880,070 | 14.8 | |||||||||
Finance and insurance | 311,362 | 259,875 | 19.8 | |||||||||
Total | $ | 8,918,581 | $ | 7,476,100 | 19.3 | |||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 5.5 | 5.8 | ||||||||||
Used vehicle retail sales | 7.9 | 8.3 | ||||||||||
Used vehicle wholesale sales | (0.1 | ) | 0.8 | |||||||||
Total used | 6.8 | 7.3 | ||||||||||
Parts and service | 52.5 | 52.4 | ||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||
Total | 14.5 | 14.9 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 289,875 | $ | 247,439 | 17.2 | |||||||
Used vehicle retail sales | 160,879 | 146,006 | 10.2 | |||||||||
Used vehicle wholesale sales | (195 | ) | 2,444 | (108.0 | ) | |||||||
Total used | 160,684 | 148,450 | 8.2 | |||||||||
Parts and service | 530,625 | 461,488 | 15.0 | |||||||||
Finance and insurance | 311,362 | 259,875 | 19.8 | |||||||||
Total | $ | 1,292,546 | $ | 1,117,252 | 15.7 | |||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 155,866 | 128,550 | 21.2 | |||||||||
Retail used vehicles sold | 98,813 | 85,366 | 15.8 | |||||||||
Wholesale used vehicles sold | 50,736 | 43,756 | 16.0 | |||||||||
Total used | 149,549 | 129,122 | 15.8 | |||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 33,522 | $ | 33,381 | 0.4 | |||||||
Used vehicle retail | $ | 20,639 | $ | 20,581 | 0.3 | |||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 1,860 | $ | 1,925 | (3.4 | ) | ||||||
Used vehicle retail sales | 1,628 | 1,710 | (4.8 | ) | ||||||||
Used vehicle wholesale sales | (4 | ) | 56 | (107.1 | ) | |||||||
Total used | 1,074 | 1,150 | (6.6 | ) | ||||||||
Finance and insurance (per retail unit) | $ | 1,223 | $ | 1,215 | 0.7 | |||||||
OTHER: (1) | ||||||||||||
SG&A expenses | $ | 967,446 | $ | 842,837 | 14.8 | |||||||
SG&A as % revenues | 10.8 | 11.3 | ||||||||||
SG&A as % gross profit | 74.8 | 75.4 | ||||||||||
Operating margin % | 3.2 | 3.2 | ||||||||||
Pretax margin % | 2.3 | 2.3 | ||||||||||
INTEREST EXPENSE: | ||||||||||||
Floorplan interest expense | $ | (41,667 | ) | $ | (31,796 | ) | 31.0 | |||||
Floorplan assistance | 38,543 | 33,915 | 13.6 | |||||||||
Net floorplan income (expense) | $ | (3,124 | ) | $ | 2,119 | (247.4 | ) | |||||
Other interest expense, net | $ | (38,971 | ) | $ | (37,465 | ) | 4.0 |
Group 1 Automotive, Inc. | ||||||||||||
Additional Information - Same Store(1) | ||||||||||||
(Unaudited) | ||||||||||||
(Dollars in thousands, except per unit amounts) | ||||||||||||
Three Months Ended December 31, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 1,121,091 | $ | 1,104,558 | 1.5 | |||||||
Used vehicle retail sales | 440,319 | 407,766 | 8.0 | |||||||||
Used vehicle wholesale sales | 75,013 | 66,714 | 12.4 | |||||||||
Total used | 515,332 | 474,480 | 8.6 | |||||||||
Parts and service | 225,173 | 209,371 | 7.5 | |||||||||
Finance and insurance | 71,948 | 65,405 | 10.0 | |||||||||
Total | $ | 1,933,544 | $ | 1,853,814 | 4.3 | |||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 5.3 | 5.6 | ||||||||||
Used vehicle retail sales | 7.1 | 7.8 | ||||||||||
Used vehicle wholesale sales | (2.5 | ) | 0.3 | |||||||||
Total used | 5.7 | 6.7 | ||||||||||
Parts and service | 53.0 | 51.9 | ||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||
Total | 14.5 | 14.5 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 59,730 | $ | 62,085 | (3.8 | ) | ||||||
Used vehicle retail sales | 31,430 | 31,730 | (0.9 | ) | ||||||||
Used vehicle wholesale sales | (1,850 | ) | 200 | (1,025.0 | ) | |||||||
Total used | 29,580 | 31,930 | (7.4 | ) | ||||||||
Parts and service | 119,420 | 108,694 | 9.9 | |||||||||
Finance and insurance | 71,948 | 65,405 | 10.0 | |||||||||
Total | $ | 280,678 | $ | 268,114 | 4.7 | |||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 31,487 | 31,348 | 0.4 | |||||||||
Retail used vehicles sold | 20,362 | 19,279 | 5.6 | |||||||||
Wholesale used vehicles sold | 10,741 | 9,913 | 8.4 | |||||||||
Total used | 31,103 | 29,192 | 6.5 | |||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 35,605 | $ | 35,235 | 1.0 | |||||||
Used vehicle retail | $ | 21,625 | $ | 21,151 | 2.2 | |||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 1,897 | $ | 1,981 | (4.2 | ) | ||||||
Used vehicle retail sales | 1,544 | 1,646 | (6.2 | ) | ||||||||
Used vehicle wholesale sales | (172 | ) | 20 | (960.0 | ) | |||||||
Total used | 951 | 1,094 | (13.1 | ) | ||||||||
Finance and insurance (per retail unit) | $ | 1,388 | $ | 1,292 | 7.4 | |||||||
OTHER: (2) | ||||||||||||
SG&A expenses | $ | 210,205 | $ | 202,653 | 3.7 | |||||||
SG&A as % revenues | 10.9 | 10.9 | ||||||||||
SG&A as % gross profit | 74.9 | 75.6 | ||||||||||
Operating margin % | 3.2 | 3.1 |
Twelve Months Ended December 31, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 4,354,540 | $ | 4,107,638 | 6.0 | |||||||
Used vehicle retail sales | 1,794,875 | 1,693,237 | 6.0 | |||||||||
Used vehicle wholesale sales | 276,121 | 275,011 | 0.4 | |||||||||
Total used | 2,070,996 | 1,968,248 | 5.2 | |||||||||
Parts and service | 902,905 | 840,383 | 7.4 | |||||||||
Finance and insurance | 286,837 | 251,544 | 14.0 | |||||||||
Total | $ | 7,615,278 | $ | 7,167,813 | 6.2 | |||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 5.3 | 5.8 | ||||||||||
Used vehicle retail sales | 8.0 | 8.3 | ||||||||||
Used vehicle wholesale sales | (0.2 | ) | 1.0 | |||||||||
Total used | 6.9 | 7.3 | ||||||||||
Parts and service | 53.1 | 52.4 | ||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||
Total | 15.0 | 15.0 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 232,638 | $ | 239,221 | (2.8 | ) | ||||||
Used vehicle retail sales | 143,457 | 141,015 | 1.7 | |||||||||
Used vehicle wholesale sales | (494 | ) | 2,791 | (117.7 | ) | |||||||
Total used | 142,963 | 143,806 | (0.6 | ) | ||||||||
Parts and service | 479,882 | 440,386 | 9.0 | |||||||||
Finance and insurance | 286,837 | 251,544 | 14.0 | |||||||||
Total | $ | 1,142,320 | $ | 1,074,957 | 6.3 | |||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 127,641 | 122,043 | 4.6 | |||||||||
Retail used vehicles sold | 85,616 | 81,784 | 4.7 | |||||||||
Wholesale used vehicles sold | 42,593 | 41,200 | 3.4 | |||||||||
Total used | 128,209 | 122,984 | 4.2 | |||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 34,116 | $ | 33,657 | 1.4 | |||||||
Used vehicle retail | $ | 20,964 | $ | 20,704 | 1.3 | |||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 1,823 | $ | 1,960 | (7.0 | ) | ||||||
Used vehicle retail sales | 1,676 | 1,724 | (2.8 | ) | ||||||||
Used vehicle wholesale sales | (12 | ) | 68 | (117.6 | ) | |||||||
Total used | 1,115 | 1,169 | (4.6 | ) | ||||||||
Finance and insurance (per retail unit) | $ | 1,345 | $ | 1,234 | 9.0 | |||||||
OTHER: (2) | ||||||||||||
SG&A expenses | $ | 840,252 | $ | 801,188 | 4.9 | |||||||
SG&A as % revenues | 11.0 | 11.2 | ||||||||||
SG&A as % gross profit | 73.6 | 74.5 | ||||||||||
Operating margin % | 3.5 | 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 December 31, | |||||||||||
2013 | 2012 | % Change | |||||||||
SG&A RECONCILIATION: | |||||||||||
As reported | $ | 203,336 | $ | 203,124 | 0.1 | ||||||
Pre-tax adjustments: | |||||||||||
Catastrophic events | — | (1,916 | ) | ||||||||
Net gain on real estate and dealership transactions | — | 437 | |||||||||
Severance costs associated with restructuring activities | (385 | ) | (336 | ) | |||||||
Acquisition costs | — | (1,777 | ) | ||||||||
Adjusted SG&A (1) | $ | 202,951 | $ | 199,532 | 1.7 | ||||||
SG&A AS % REVENUES: | |||||||||||
Unadjusted | 10.9 | 11.3 | |||||||||
Adjusted (1) | 10.9 | 11.1 | |||||||||
SG&A AS % GROSS PROFIT: | |||||||||||
Unadjusted | 74.6 | 77.5 | |||||||||
Adjusted (1) | 74.4 | 76.1 | |||||||||
OPERATING MARGIN %: | |||||||||||
Unadjusted | 3.0 | 2.5 | |||||||||
Adjusted (1),(2) | 3.3 | 3.1 | |||||||||
PRETAX MARGIN %: | |||||||||||
Unadjusted | 2.0 | 1.5 | |||||||||
Adjusted (1),(2) | 2.3 | 2.1 |
Twelve Months Ended December 31, | |||||||||||
2013 | 2012 | % Change | |||||||||
SG&A RECONCILIATION: | |||||||||||
As reported | $ | 830,275 | $ | 796,998 | 4.2 | ||||||
Pre-tax adjustments: | |||||||||||
Acquisition costs | (5,159 | ) | (1,777 | ) | |||||||
Catastrophic events | (12,158 | ) | (4,566 | ) | |||||||
Net gain on real estate and dealership transactions | 10,196 | 1,508 | |||||||||
Severance costs associated with restructuring activities | (641 | ) | (336 | ) | |||||||
Adjusted SG&A (1) | $ | 822,513 | $ | 791,827 | 3.9 | ||||||
SG&A AS % REVENUES: | |||||||||||
Unadjusted | 11.3 | 11.5 | |||||||||
Adjusted (1) | 11.2 | 11.4 | |||||||||
SG&A AS % GROSS PROFIT: | |||||||||||
Unadjusted | 74.4 | 75.6 | |||||||||
Adjusted (1) | 73.7 | 75.1 | |||||||||
OPERATING MARGIN %: | |||||||||||
Unadjusted | 3.4 | 3.2 | |||||||||
Adjusted (1),(2) | 3.6 | 3.4 | |||||||||
PRETAX MARGIN %: | |||||||||||
Unadjusted | 2.4 | 2.2 | |||||||||
Adjusted (1),(2) | 2.6 | 2.4 | |||||||||
(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) | Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $5,368 and $6,542 for the three and twelve months ended December 31, 2013, and $6,988 and $7,175 for the three and twelve months ended December 31, 2012. |
Group 1 Automotive, Inc. | |||||||||||
Reconciliation of Certain Non-GAAP Financial Measures - U.K. | |||||||||||
(Unaudited) | |||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||
Three Months Ended December 31, | |||||||||||
2013 | 2012 | % Change | |||||||||
SG&A RECONCILIATION: | |||||||||||
As reported | $ | 20,516 | $ | 15,801 | 29.8 | ||||||
Pre-tax adjustments: | |||||||||||
Severance costs associated with restructuring activities | — | (438 | ) | ||||||||
Adjusted SG&A (1) | $ | 20,516 | $ | 15,363 | 33.5 | ||||||
SG&A AS % REVENUES: | |||||||||||
Unadjusted | 10.4 | 11.1 | |||||||||
Adjusted (1) | 10.4 | 10.7 | |||||||||
SG&A AS % GROSS PROFIT: | |||||||||||
Unadjusted | 82.7 | 87.6 | |||||||||
Adjusted (1) | 82.7 | 85.2 | |||||||||
OPERATING MARGIN %: | |||||||||||
Unadjusted | 1.8 | 1.1 | |||||||||
Adjusted (1),(2) | 1.8 | 1.4 | |||||||||
PRETAX MARGIN %: | |||||||||||
Unadjusted | 1.4 | 0.8 | |||||||||
Adjusted (1),(2) | 1.4 | 1.1 |
Twelve Months Ended December 31, | |||||||||||
2013 | 2012 | % Change | |||||||||
SG&A RECONCILIATION: | |||||||||||
As reported | $ | 74,778 | $ | 51,448 | 45.3 | ||||||
Pre-tax adjustments: | |||||||||||
Acquisition costs | (142 | ) | — | ||||||||
Severance costs associated with restructuring activities | — | (438 | ) | ||||||||
Adjusted SG&A (1) | $ | 74,636 | $ | 51,010 | 46.3 | ||||||
SG&A AS % REVENUES: | |||||||||||
Unadjusted | 9.2 | 9.9 | |||||||||
Adjusted (1) | 9.2 | 9.8 | |||||||||
SG&A AS % GROSS PROFIT: | |||||||||||
Unadjusted | 80.2 | 81.7 | |||||||||
Adjusted (1) | 80.1 | 81.0 | |||||||||
OPERATING MARGIN %: | |||||||||||
Unadjusted | 2.0 | 1.8 | |||||||||
Adjusted (1),(2) | 2.0 | 1.8 | |||||||||
PRETAX MARGIN %: | |||||||||||
Unadjusted | 1.6 | 1.4 | |||||||||
Adjusted (1),(2) | 1.6 | 1.5 | |||||||||
(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 item above. |
Group 1 Automotive, Inc. | |||||
Reconciliation of Certain Non-GAAP Financial Measures - Brazil | |||||
(Unaudited) | |||||
(Dollars in thousands, except per share amounts) | |||||
Twelve Months Ended December 31, 2013 (3) | |||||
SG&A RECONCILIATION: | |||||
As reported | $ | 71,803 | |||
Pre-tax adjustments: | |||||
Acquisition costs | (1,211 | ) | |||
Severance costs associated with restructuring activities | (295 | ) | |||
Adjusted SG&A (1) | $ | 70,297 | |||
SG&A AS % REVENUES: | |||||
Unadjusted | 9.5 | ||||
Adjusted (1) | 9.3 | ||||
SG&A AS % GROSS PROFIT: | |||||
Unadjusted | 86.6 | ||||
Adjusted (1) | 84.8 | ||||
OPERATING MARGIN %: | |||||
Unadjusted | 1.3 | ||||
Adjusted (1),(2) | 1.5 | ||||
PRETAX MARGIN %: | |||||
Unadjusted | 0.3 | ||||
Adjusted (1),(4) | 0.7 | ||||
(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 items above. | ||||
(3) | Results are for the period from the date of acquisition (February 28, 2013) through December 31, 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 December 31, 2013. |
Group 1 Automotive, Inc. | ||||||||||||
Reconciliation of Certain Non-GAAP Financial Measures - Consolidated | ||||||||||||
(Unaudited) | ||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||
Three Months Ended December 31, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
NET INCOME RECONCILIATION: | ||||||||||||
As reported | $ | 21,721 | $ | 17,132 | 26.8 | |||||||
After-tax adjustments: | ||||||||||||
Catastrophic events (6) | — | 1,219 | ||||||||||
Net gain on real estate and dealership transactions (7) | — | (276 | ) | |||||||||
Non-cash asset impairment charges (8) | 3,319 | 4,277 | ||||||||||
Severance costs associated with restructuring activities (9) | 237 | 548 | ||||||||||
Valuation allowance for certain deferred tax assets | 3,629 | — | ||||||||||
Acquisition costs (5) | — | 1,111 | ||||||||||
Adjusted net income (1) | $ | 28,906 | $ | 24,011 | 20.4 | |||||||
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION | ||||||||||||
Adjusted net income | $ | 28,906 | $ | 24,011 | 20.4 | |||||||
Less: Adjusted earnings allocated to participating securities | 1,057 | 1,066 | (0.8 | ) | ||||||||
Adjusted net income available to diluted common shares | $ | 27,849 | $ | 22,945 | 21.4 | |||||||
DILUTED INCOME PER COMMON SHARE RECONCILIATION: | ||||||||||||
As reported | $ | 0.81 | $ | 0.70 | 15.7 | |||||||
After-tax adjustments: | ||||||||||||
Catastrophic events | — | 0.05 | ||||||||||
Net gain on real estate and dealership transactions | — | (0.01 | ) | |||||||||
Non-cash asset impairment charges | 0.12 | 0.18 | ||||||||||
Severance costs associated with restructuring activities | 0.01 | 0.02 | ||||||||||
Valuation allowance for certain deferred tax assets | 0.14 | — | ||||||||||
Acquisition costs | — | 0.05 | ||||||||||
Adjusted diluted income per share (1) | $ | 1.08 | $ | 0.99 | 9.1 | |||||||
SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 245,401 | $ | 218,925 | 12.1 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | — | (1,916 | ) | |||||||||
Net gain on real estate and dealership transactions | — | 437 | ||||||||||
Severance costs associated with restructuring activities | (385 | ) | (774 | ) | ||||||||
Acquisition costs | — | (1,777 | ) | |||||||||
Adjusted SG&A (1) | $ | 245,016 | $ | 214,895 | 14.0 | |||||||
SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 10.8 | 11.3 | ||||||||||
Adjusted (1) | 10.7 | 11.1 | ||||||||||
SG&A AS % GROSS PROFIT: | ||||||||||||
Unadjusted | 76.4 | 78.1 | ||||||||||
Adjusted (1) | 76.3 | 76.7 | ||||||||||
OPERATING MARGIN %: | ||||||||||||
Unadjusted | 2.7 | 2.4 | ||||||||||
Adjusted (1),(2) | 2.9 | 2.9 |
PRETAX MARGIN %: | ||||||||||||
Unadjusted | 1.8 | 1.4 | ||||||||||
Adjusted (1),(3) | 2.0 | 2.0 |
SAME STORE SG&A RECONCILIATION: | |||||||||||
As reported | $ | 210,590 | $ | 206,529 | 2.0 | ||||||
Pre-tax adjustments: | |||||||||||
Catastrophic events | — | (1,916 | ) | ||||||||
Net gain on real estate and dealership transactions | — | 153 | |||||||||
Severance costs associated with restructuring activities | (385 | ) | (336 | ) | |||||||
Acquisition costs | — | (1,777 | ) | ||||||||
Adjusted Same Store SG&A (1) | $ | 210,205 | $ | 202,653 | 3.7 | ||||||
SAME STORE SG&A AS % REVENUES: | |||||||||||
Unadjusted | 10.9 | 11.1 | |||||||||
Adjusted (1) | 10.9 | 10.9 | |||||||||
SAME STORE SG&A AS % GROSS PROFIT: | |||||||||||
Unadjusted | 75.0 | 77.0 | |||||||||
Adjusted (1) | 74.9 | 75.6 | |||||||||
SAME STORE OPERATING MARGIN %: | |||||||||||
Unadjusted | 2.9 | 2.7 | |||||||||
Adjusted (1),(4) | 3.2 | 3.1 |
Group 1 Automotive, Inc. | ||||||||||||
Reconciliation of Certain Non-GAAP Financial Measures - Consolidated | ||||||||||||
(Unaudited) | ||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||
Twelve Months Ended December 31, | ||||||||||||
2013 | 2012 | % Change | ||||||||||
NET INCOME RECONCILIATION: | ||||||||||||
As reported | $ | 113,992 | $ | 100,209 | 13.8 | |||||||
After-tax adjustments: | ||||||||||||
Acquisition costs (5) | 6,337 | 1,111 | ||||||||||
Catastrophic events (6) | 7,419 | 2,877 | ||||||||||
Net gain on real estate and dealership transactions (7) | (5,370 | ) | (935 | ) | ||||||||
Non-cash asset impairment charges (8) | 4,037 | 4,392 | ||||||||||
Severance costs associated with restructuring activities (9) | 691 | 548 | ||||||||||
Valuation allowance for certain deferred tax assets | 3,629 | — | ||||||||||
Adjusted net income (1) | $ | 130,735 | $ | 108,202 | 20.8 | |||||||
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION | ||||||||||||
Adjusted net income | $ | 130,735 | $ | 108,202 | 20.8 | |||||||
Less: Adjusted earnings allocated to participating securities | 5,276 | 5,469 | (3.5 | ) | ||||||||
Adjusted net income available to diluted common shares | $ | 125,459 | $ | 102,733 | 22.1 | |||||||
DILUTED INCOME PER COMMON SHARE RECONCILIATION: | ||||||||||||
As reported | $ | 4.32 | $ | 4.19 | 3.1 | |||||||
After-tax adjustments: | ||||||||||||
Acquisition costs | 0.24 | 0.05 | ||||||||||
Catastrophic events | 0.28 | 0.12 | ||||||||||
Net gain on real estate and dealership transactions | (0.20 | ) | (0.04 | ) | ||||||||
Non-cash asset impairment charges | 0.15 | 0.19 | ||||||||||
Severance costs associated with restructuring activities | 0.03 | 0.02 | ||||||||||
Valuation allowance for certain deferred tax assets | 0.14 | — | ||||||||||
Adjusted diluted income per share (1) | $ | 4.96 | $ | 4.53 | 9.5 | |||||||
SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 976,856 | $ | 848,446 | 15.1 | |||||||
Pre-tax adjustments: | ||||||||||||
Acquisition costs | (6,512 | ) | (1,777 | ) | ||||||||
Catastrophic events | (12,158 | ) | (4,566 | ) | ||||||||
Net gain on real estate and dealership transactions | 10,196 | 1,508 | ||||||||||
Severance costs associated with restructuring activities | (936 | ) | (774 | ) | ||||||||
Adjusted SG&A (1) | $ | 967,446 | $ | 842,837 | 14.8 | |||||||
SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 11.0 | 11.3 | ||||||||||
Adjusted (1) | 10.8 | 11.3 | ||||||||||
SG&A AS % GROSS PROFIT: | ||||||||||||
Unadjusted | 75.6 | 75.9 | ||||||||||
Adjusted (1) | 74.8 | 75.4 | ||||||||||
OPERATING MARGIN %: | ||||||||||||
Unadjusted | 3.1 | 3.1 | ||||||||||
Adjusted (1),(2) | 3.2 | 3.2 | ||||||||||
PRETAX MARGIN %: | ||||||||||||
Unadjusted | 2.2 | 2.1 | ||||||||||
Adjusted (1),(3) | 2.3 | 2.3 |
SAME STORE SG&A RECONCILIATION: | |||||||||||
As reported | $ | 858,367 | $ | 808,218 | 6.2 | ||||||
Pre-tax adjustments: | |||||||||||
Acquisition costs | (5,301 | ) | (1,777 | ) | |||||||
Catastrophic events | (12,158 | ) | (4,566 | ) | |||||||
Net gain on real estate and dealership transactions | (200 | ) | (351 | ) | |||||||
Severance costs associated with restructuring activities | (456 | ) | (336 | ) | |||||||
Adjusted Same Store SG&A (1) | $ | 840,252 | $ | 801,188 | 4.9 | ||||||
SAME STORE SG&A AS % REVENUES: | |||||||||||
Unadjusted | 11.3 | 11.3 | |||||||||
Adjusted (1) | 11.0 | 11.2 | |||||||||
SAME STORE SG&A AS % GROSS PROFIT: | |||||||||||
Unadjusted | 75.1 | 75.2 | |||||||||
Adjusted (1) | 73.6 | 74.5 | |||||||||
SAME STORE OPERATING MARGIN %: | |||||||||||
Unadjusted | 3.2 | 3.2 | |||||||||
Adjusted (1),(4) | 3.5 | 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) | Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges for all periods. | |||||
(3) | 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 twelve months ended December 31, 2013. | |||||
(4) | Excludes the impact of Same Store SG&A reconciling items above, as well as Same Store non-cash asset impairment charges of $5,368 and $6,542 for the three and twelve months ended December 31, 2013, respectively, and $4,163 and $4,348 for the three and twelve months ended December 31, 2012, respectively. | |||||
(5) | Adjustment is net of tax benefit of $964 for the twelve months ended December 31, 2013, and $666 for the three and twelve months ended December 31, 2012, respectively, calculated utilizing the applicable federal and state tax rates for the adjustment. | |||||
(6) | Adjustment is net of tax benefit of $4,739 for the twelve months ended December 31, 2013, and $697 and $1,689 for the three and twelve months ended December 31, 2012, respectively, calculated utilizing the applicable federal and state tax rates for the adjustment. | |||||
(7) | Adjustment is net of tax provision of $4,827 for the twelve months ended December 31, 2013, and $161 and $573 for the three and twelve months ended December 31, 2012, respectively, calculated utilizing the applicable federal and state tax rates for the adjustment. | |||||
(8) | Adjustment is net of tax benefit of $2,049 and $2,505 for the three and twelve months ended December 31, 2013, respectively, and $2,711 and $2,783 for the three and twelve months ended December 31, 2012, respectively, calculated utilizing the applicable federal and state tax rates for the adjustment. | |||||
(9) | Adjustment is net of tax benefit of $148 and $245 for the three and twelve months ended December 31, 2013, respectively, and $226 for the three and twelve months ended December 31, 2012, respectively, calculated utilizing the applicable federal and state tax rates for the adjustment. |