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. | ||||
April 24, 2014 | By: | /s/ John C. Rickel | ||
Date | John C. Rickel, Senior Vice President and Chief Financial Officer |
▪ | Total revenue increased 15.1 percent to $2.3 billion; total gross profit grew 12.5 percent to $338.1 million. |
▪ | New vehicle revenues increased 14.3 percent. New vehicle gross profit increased 6.8 percent to $66.9 million as lower margins, down $121 per unit, partially offset the revenue growth. Same Store new vehicle unit sales grew 3.5 percent. |
▪ | U.K. Same Store revenue increased 29.7 percent driven by 17.8 percent growth in new vehicle unit sales. |
▪ | Retail used vehicle revenues increased 16.7 percent. Gross profit improved 6.3 percent to $42.8 million as lower margins, down $141 per unit, partially offset the revenue growth. Same Store used vehicle unit sales grew 5.0 percent. |
▪ | Parts and service gross profit increased 13.3 percent on revenue growth of 13.4 percent. Same Store parts and service gross profit increased 6.7 percent on revenue growth of 6.3 percent. |
▪ | Finance and Insurance (F&I) gross profit increased 19.3 percent. Same Store F&I gross profit per retail unit increased 10.8 percent to $1,391 per unit. |
▪ | SG&A expenses as a percent of gross profit increased 80 basis points over adjusted 2013 results to 76.2 percent, primarily explained by a shift in business towards our foreign operations. On a Same Store basis, SG&A expenses as a percent of gross profit increased 10 basis points over adjusted 2013 results to 74.9 percent, primarily explained by the impact of the severe weather in the United States. |
▪ | United States: |
▪ | United Kingdom: |
▪ | Brazil: |
Group 1 Automotive, Inc. | ||||||||||||
Consolidated Statements of Operations | ||||||||||||
(Unaudited) | ||||||||||||
(In thousands, except per share amounts) | ||||||||||||
Three Months Ended March 31, | ||||||||||||
2014 | 2013 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 1,268,836 | $ | 1,110,235 | 14.3 | |||||||
Used vehicle retail sales | 549,897 | 471,399 | 16.7 | |||||||||
Used vehicle wholesale sales | 89,173 | 74,551 | 19.6 | |||||||||
Parts and service | 269,317 | 237,510 | 13.4 | |||||||||
Finance and insurance | 83,640 | 70,137 | 19.3 | |||||||||
Total revenues | 2,260,863 | 1,963,832 | 15.1 | |||||||||
COST OF SALES: | ||||||||||||
New vehicle retail sales | 1,201,930 | 1,047,599 | 14.7 | |||||||||
Used vehicle retail sales | 507,096 | 431,123 | 17.6 | |||||||||
Used vehicle wholesale sales | 86,061 | 72,129 | 19.3 | |||||||||
Parts and service | 127,654 | 112,492 | 13.5 | |||||||||
Total cost of sales | 1,922,741 | 1,663,343 | 15.6 | |||||||||
GROSS PROFIT | 338,122 | 300,489 | 12.5 | |||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 257,558 | 233,433 | 10.3 | |||||||||
DEPRECIATION AND AMORTIZATION EXPENSE | 9,925 | 8,413 | 18.0 | |||||||||
OPERATING INCOME | 70,639 | 58,643 | 20.5 | |||||||||
OTHER EXPENSE: | ||||||||||||
Floorplan interest expense | (10,913 | ) | (9,364 | ) | 16.5 | |||||||
Other interest expense, net | (10,513 | ) | (9,242 | ) | 13.8 | |||||||
Other expense, net | — | (789 | ) | (100.0 | ) | |||||||
INCOME BEFORE INCOME TAXES | 49,213 | 39,248 | 25.4 | |||||||||
PROVISION FOR INCOME TAXES | (17,910 | ) | (17,130 | ) | 4.6 | |||||||
NET INCOME | $ | 31,303 | $ | 22,118 | 41.5 | |||||||
Earnings allocated to participating securities | $ | (1,156 | ) | $ | (930 | ) | 24.3 | |||||
Earnings available to diluted common shares | $ | 30,147 | $ | 21,188 | 42.3 | |||||||
DILUTED EARNINGS PER SHARE | $ | 1.19 | $ | 0.88 | 35.2 | |||||||
Weighted average dilutive common shares outstanding | 25,428 | 24,113 | 5.5 | |||||||||
Weighted average participating securities | 963 | 1,072 | (10.2 | ) | ||||||||
Total weighted average shares outstanding | 26,391 | 25,185 | 4.8 |
Group 1 Automotive, Inc. | ||||||||||||
Consolidated Balance Sheets | ||||||||||||
(Dollars in thousands) | ||||||||||||
March 31, | December 31, | |||||||||||
2014 | 2013 | % Change | ||||||||||
(Unaudited) | ||||||||||||
ASSETS: | ||||||||||||
CURRENT ASSETS: | ||||||||||||
Cash and cash equivalents | $ | 17,687 | $ | 20,215 | (12.5 | ) | ||||||
Contracts in transit and vehicle receivables, net | 208,461 | 225,156 | (7.4 | ) | ||||||||
Accounts and notes receivable, net | 131,494 | 135,058 | (2.6 | ) | ||||||||
Inventories, net | 1,537,112 | 1,542,318 | (0.3 | ) | ||||||||
Deferred income taxes | 18,262 | 21,150 | (13.7 | ) | ||||||||
Prepaid expenses and other current assets | 23,257 | 24,041 | (3.3 | ) | ||||||||
Total current assets | 1,936,273 | 1,967,938 | (1.6 | ) | ||||||||
PROPERTY AND EQUIPMENT, net | 827,121 | 796,356 | 3.9 | |||||||||
GOODWILL AND INTANGIBLE FRANCHISE RIGHTS | 1,048,265 | 1,038,808 | 0.9 | |||||||||
OTHER ASSETS | 14,278 | 16,376 | (12.8 | ) | ||||||||
Total assets | $ | 3,825,937 | $ | 3,819,478 | 0.2 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY: | ||||||||||||
CURRENT LIABILITIES: | ||||||||||||
Floorplan notes payable - credit facility and other | $ | 1,108,849 | $ | 1,143,104 | (3.0 | ) | ||||||
Offset account related to floorplan notes payable - credit facility | (33,646 | ) | (56,198 | ) | (40.1 | ) | ||||||
Floorplan notes payable - manufacturer affiliates | 314,976 | 346,572 | (9.1 | ) | ||||||||
Current maturities of long-term debt and short-term financing | 29,967 | 36,225 | (17.3 | ) | ||||||||
Accounts payable | 280,454 | 254,930 | 10.0 | |||||||||
Accrued expenses | 150,319 | 140,543 | 7.0 | |||||||||
Total current liabilities | 1,850,919 | 1,865,176 | (0.8 | ) | ||||||||
2.25% CONVERTIBLE SENIOR NOTES (aggregate principal of $182,753 at March 31, 2014 and December 31, 2013) | 162,425 | 160,334 | 1.3 | |||||||||
3.00% CONVERTIBLE SENIOR NOTES (aggregate principal of $115,000 at March 31, 2014 and December 31, 2013) | 85,255 | 84,305 | 1.1 | |||||||||
MORTGAGE FACILITY, net of current maturities | 63,786 | 64,271 | (0.8 | ) | ||||||||
ACQUISITION LINE | 49,970 | 60,000 | (16.7 | ) | ||||||||
OTHER REAL ESTATE RELATED AND LONG-TERM DEBT, net of current maturities | 260,471 | 250,958 | 3.8 | |||||||||
CAPITAL LEASE OBLIGATIONS RELATED TO REAL ESTATE, net of current maturities | 43,135 | 43,821 | (1.6 | ) | ||||||||
DEFERRED INCOME TAXES | 150,009 | 152,291 | (1.5 | ) | ||||||||
LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES | 25,661 | 26,078 | (1.6 | ) | ||||||||
OTHER LIABILITIES | 49,052 | 47,975 | 2.2 | |||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
TEMPORARY EQUITY - REDEEMABLE EQUITY PORTION OF THE 3.00% CONVERTIBLE SENIOR NOTES | 28,194 | 29,094 | (3.1 | ) | ||||||||
STOCKHOLDERS' EQUITY: | ||||||||||||
Common stock | 258 | 257 | 0.4 | |||||||||
Additional paid-in capital | 368,728 | 368,641 | — | |||||||||
Retained earnings | 803,302 | 776,101 | 3.5 | |||||||||
Accumulated other comprehensive loss | (44,242 | ) | (51,677 | ) | (14.4 | ) | ||||||
Treasury stock | (70,986 | ) | (58,147 | ) | 22.1 | |||||||
Total stockholders' equity | 1,057,060 | 1,035,175 | 2.1 | |||||||||
Total liabilities and stockholders' equity | $ | 3,825,937 | $ | 3,819,478 | 0.2 |
Group 1 Automotive, Inc. | |||||||||||
Consolidated Statements of Adjusted Cash Flow from Operating Activities | |||||||||||
(Unaudited) | |||||||||||
(Dollars in thousands) | |||||||||||
Three Months Ended March 31, | |||||||||||
2014 | 2013 | % Change | |||||||||
Net income | $ | 31,303 | $ | 22,118 | 41.5 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 9,925 | 8,413 | 18.0 | ||||||||
Deferred income taxes | 2,913 | 9,127 | (68.1 | ) | |||||||
Gain on disposition of assets and franchise | (16 | ) | (578 | ) | (97.2 | ) | |||||
Stock-based compensation | 3,660 | 3,403 | 7.6 | ||||||||
Amortization of debt discount and issue costs | 3,612 | 3,386 | 6.7 | ||||||||
Other | (189 | ) | 55 | (443.6 | ) | ||||||
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | |||||||||||
Accounts payable and accrued expenses | 46,555 | 53,266 | (12.6 | ) | |||||||
Accounts and notes receivable | 4,822 | 1,838 | 162.4 | ||||||||
Inventories | 38,269 | (84,053 | ) | 145.5 | |||||||
Contracts-in-transit and vehicle receivables | 16,780 | 14,065 | 19.3 | ||||||||
Prepaid expenses and other assets | 2,697 | 1,764 | 52.9 | ||||||||
Floorplan notes payable - credit facilities (1) | (43,981 | ) | 39,419 | (211.6 | ) | ||||||
Floorplan notes payable - manufacturer affiliates (2) | (47,173 | ) | 25,769 | (283.1 | ) | ||||||
Deferred revenues | 504 | 79 | 538.0 | ||||||||
Adjusted net cash provided by operating activities (3) | $ | 69,681 | $ | 98,071 | (28.9 | ) |
Group 1 Automotive, Inc. | ||||||||
Additional Information - Consolidated | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 (%) | 2013 (%) | |||||||
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX: | ||||||||
Region | Geographic Market | |||||||
East | Massachusetts | 5.4 | 6.4 | |||||
Georgia | 4.4 | 4.3 | ||||||
New Jersey | 3.3 | 4.8 | ||||||
New Hampshire | 2.1 | 2.3 | ||||||
Louisiana | 2.0 | 2.5 | ||||||
New York | 1.7 | 2.9 | ||||||
South Carolina | 1.3 | 1.6 | ||||||
Mississippi | 1.3 | 1.8 | ||||||
Florida | 1.3 | 1.4 | ||||||
Alabama | 0.8 | 0.9 | ||||||
Maryland | 0.4 | 0.6 | ||||||
24.0 | 29.5 | |||||||
West | Texas | 34.2 | 34.2 | |||||
California | 9.6 | 13.4 | ||||||
Oklahoma | 8.5 | 7.4 | ||||||
Kansas | 2.4 | 2.5 | ||||||
Louisiana | 0.7 | — | ||||||
55.4 | 57.5 | |||||||
International | Brazil | 10.7 | 4.5 | |||||
United Kingdom | 9.9 | 8.5 | ||||||
100.0 | 100.0 | |||||||
NEW VEHICLE UNIT SALES BRAND MIX: | ||||||||
Toyota/Scion/Lexus | 25.8 | 27.6 | ||||||
Ford/Lincoln | 12.1 | 11.5 | ||||||
Honda/Acura | 11.6 | 12.3 | ||||||
BMW/MINI | 11.2 | 10.3 | ||||||
Nissan/Infiniti | 9.7 | 10.6 | ||||||
Volkswagen/Audi/Porsche | 6.6 | 6.9 | ||||||
Chevrolet/GMC/Buick/Cadillac | 5.5 | 5.3 | ||||||
Hyundai/Kia | 5.4 | 4.5 | ||||||
Chrysler/Dodge/Jeep/RAM | 4.6 | 4.3 | ||||||
Mercedes Benz/smart/Sprinter | 4.0 | 4.5 | ||||||
Other | 3.5 | 2.2 | ||||||
100.0 | 100.0 |
Group 1 Automotive, Inc. | ||||||||||||
Additional Information - U.S. | ||||||||||||
(Unaudited) | ||||||||||||
(Dollars in thousands, except per unit amounts) | ||||||||||||
Three Months Ended March 31, | ||||||||||||
2014 | 2013 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 1,012,552 | $ | 962,633 | 5.2 | |||||||
Used vehicle retail sales | 450,487 | 418,339 | 7.7 | |||||||||
Used vehicle wholesale sales | 64,471 | 57,669 | 11.8 | |||||||||
Total used | 514,958 | 476,008 | 8.2 | |||||||||
Parts and service | 230,319 | 216,354 | 6.5 | |||||||||
Finance and insurance | 76,797 | 66,792 | 15.0 | |||||||||
Total | $ | 1,834,626 | $ | 1,721,787 | 6.6 | |||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 5.0 | 5.4 | ||||||||||
Used vehicle retail sales | 8.3 | 9.0 | ||||||||||
Used vehicle wholesale sales | 3.5 | 3.7 | ||||||||||
Total used | 7.7 | 8.3 | ||||||||||
Parts and service | 53.1 | 53.1 | ||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||
Total | 15.8 | 15.9 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 50,935 | $ | 51,582 | (1.3 | ) | ||||||
Used vehicle retail sales | 37,440 | 37,619 | (0.5 | ) | ||||||||
Used vehicle wholesale sales | 2,256 | 2,125 | 6.2 | |||||||||
Total used | 39,696 | 39,744 | (0.1 | ) | ||||||||
Parts and service | 122,303 | 114,823 | 6.5 | |||||||||
Finance and insurance | 76,797 | 66,793 | 15.0 | |||||||||
Total | $ | 289,731 | $ | 272,942 | 6.2 | |||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 29,947 | 28,778 | 4.1 | |||||||||
Retail used vehicles sold | 22,743 | 21,116 | 7.7 | |||||||||
Wholesale used vehicles sold | 9,950 | 9,657 | 3.0 | |||||||||
Total used | 32,693 | 30,773 | 6.2 | |||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 33,811 | $ | 33,450 | 1.1 | |||||||
Used vehicle retail | $ | 19,808 | $ | 19,811 | — | |||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 1,701 | $ | 1,792 | (5.1 | ) | ||||||
Used vehicle retail sales | 1,646 | 1,782 | (7.6 | ) | ||||||||
Used vehicle wholesale sales | 227 | 220 | 3.2 | |||||||||
Total used | 1,214 | 1,292 | (6.0 | ) | ||||||||
Finance and insurance (per retail unit) | $ | 1,458 | $ | 1,339 | 8.9 | |||||||
OTHER: (1) | ||||||||||||
SG&A expenses | $ | 216,396 | $ | 204,091 | 6.0 | |||||||
SG&A as % revenues | 11.8 | 11.9 | ||||||||||
SG&A as % gross profit | 74.7 | 74.8 | ||||||||||
Operating margin % | 3.5 | 3.6 | ||||||||||
Pretax margin % | 2.5 | 2.6 | ||||||||||
INTEREST EXPENSE: | ||||||||||||
Floorplan interest | $ | (8,584 | ) | $ | (8,296 | ) | 3.5 | |||||
Floorplan assistance | 9,715 | 8,173 | 18.9 | |||||||||
Net floorplan income (expense) | $ | 1,131 | $ | (123 | ) | 1,019.5 | ||||||
Other interest expense, net | $ | (10,263 | ) | $ | (9,041 | ) | 13.5 |
Group 1 Automotive, Inc. | ||||||||||||
Additional Information - U.K. | ||||||||||||
(Unaudited) | ||||||||||||
(Dollars in thousands, except per unit amounts) | ||||||||||||
Three Months Ended March 31, | ||||||||||||
2014 | 2013 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 130,601 | $ | 94,824 | 37.7 | |||||||
Used vehicle retail sales | 71,477 | 44,965 | 59.0 | |||||||||
Used vehicle wholesale sales | 19,645 | 13,765 | 42.7 | |||||||||
Total used | 91,122 | 58,730 | 55.2 | |||||||||
Parts and service | 21,360 | 14,771 | 44.6 | |||||||||
Finance and insurance | 4,618 | 2,753 | 67.7 | |||||||||
Total | $ | 247,701 | $ | 171,078 | 44.8 | |||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 6.5 | 7.0 | ||||||||||
Used vehicle retail sales | 5.0 | 4.9 | ||||||||||
Used vehicle wholesale sales | 2.3 | 0.6 | ||||||||||
Total used | 4.4 | 3.9 | ||||||||||
Parts and service | 54.2 | 50.7 | ||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||
Total | 11.6 | 11.2 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 8,498 | $ | 6,632 | 28.1 | |||||||
Used vehicle retail sales | 3,589 | 2,217 | 61.9 | |||||||||
Used vehicle wholesale sales | 451 | 84 | 436.9 | |||||||||
Total used | 4,040 | 2,301 | 75.6 | |||||||||
Parts and service | 11,573 | 7,484 | 54.6 | |||||||||
Finance and insurance | 4,618 | 2,753 | 67.7 | |||||||||
Total | $ | 28,729 | $ | 19,170 | 49.9 | |||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 3,745 | 2,827 | 32.5 | |||||||||
Retail used vehicles sold | 2,739 | 1,728 | 58.5 | |||||||||
Wholesale used vehicles sold | 2,161 | 1,443 | 49.8 | |||||||||
Total used | 4,900 | 3,171 | 54.5 | |||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 34,873 | $ | 33,542 | 4.0 | |||||||
Used vehicle retail | $ | 26,096 | $ | 26,021 | 0.3 | |||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 2,269 | $ | 2,346 | (3.3 | ) | ||||||
Used vehicle retail sales | 1,310 | 1,283 | 2.1 | |||||||||
Used vehicle wholesale sales | 209 | 58 | 260.3 | |||||||||
Total used | 824 | 726 | 13.5 | |||||||||
Finance and insurance (per retail unit) | $ | 712 | $ | 604 | 17.9 | |||||||
OTHER: (1) | ||||||||||||
SG&A expenses | $ | 22,472 | $ | 15,894 | 41.4 | |||||||
SG&A as % revenues | 9.1 | 9.3 | ||||||||||
SG&A as % gross profit | 78.2 | 82.9 | ||||||||||
Operating margin % | 2.2 | 1.6 | ||||||||||
Pretax margin % | 1.9 | 1.3 | ||||||||||
INTEREST EXPENSE: | ||||||||||||
Floorplan interest | $ | (433 | ) | $ | (306 | ) | 41.5 | |||||
Floorplan assistance | 102 | — | 100.0 | |||||||||
Net floorplan expense | $ | (331 | ) | $ | (306 | ) | 8.2 | |||||
Other interest expense, net | $ | (451 | ) | $ | (213 | ) | 111.7 |
Group 1 Automotive, Inc. | ||||||||||||
Additional Information - Brazil | ||||||||||||
(Unaudited) | ||||||||||||
(Dollars in thousands, except per unit amounts) | ||||||||||||
Three Months Ended March 31, | ||||||||||||
2014 | 2013 (2) | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 125,683 | $ | 52,778 | 138.1 | |||||||
Used vehicle retail sales | 27,933 | 8,095 | 245.1 | |||||||||
Used vehicle wholesale sales | 5,057 | 3,117 | 62.2 | |||||||||
Total used | 32,990 | 11,212 | 194.2 | |||||||||
Parts and service | 17,638 | 6,385 | 176.2 | |||||||||
Finance and insurance | 2,225 | 592 | 275.8 | |||||||||
Total | $ | 178,536 | $ | 70,967 | 151.6 | |||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 5.9 | 8.4 | ||||||||||
Used vehicle retail sales | 6.3 | 5.4 | ||||||||||
Used vehicle wholesale sales | 8.0 | 6.8 | ||||||||||
Total used | 6.6 | 5.8 | ||||||||||
Parts and service | 44.1 | 42.4 | ||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||
Total | 11.0 | 11.8 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 7,473 | $ | 4,422 | 69.0 | |||||||
Used vehicle retail sales | 1,772 | 440 | 302.7 | |||||||||
Used vehicle wholesale sales | 405 | 212 | 91.0 | |||||||||
Total used | 2,177 | 652 | 233.9 | |||||||||
Parts and service | 7,787 | 2,710 | 187.3 | |||||||||
Finance and insurance | 2,225 | 592 | 275.8 | |||||||||
Total | $ | 19,662 | $ | 8,376 | 134.7 | |||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 4,057 | 1,491 | 172.1 | |||||||||
Retail used vehicles sold | 1,395 | 394 | 254.1 | |||||||||
Wholesale used vehicles sold | 673 | 235 | 186.4 | |||||||||
Total used | 2,068 | 629 | 228.8 | |||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 30,979 | $ | 35,398 | (12.5 | ) | ||||||
Used vehicle retail | $ | 20,024 | $ | 20,546 | (2.5 | ) | ||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 1,842 | $ | 2,966 | (37.9 | ) | ||||||
Used vehicle retail sales | 1,270 | 1,117 | 13.7 | |||||||||
Used vehicle wholesale sales | 602 | 902 | (33.3 | ) | ||||||||
Total used | 1,053 | 1,037 | 1.5 | |||||||||
Finance and insurance (per retail unit) | $ | 408 | $ | 314 | 29.9 | |||||||
OTHER: (1) | ||||||||||||
SG&A expenses | $ | 18,690 | $ | 6,702 | 178.9 | |||||||
SG&A as % revenues | 10.5 | 9.4 | ||||||||||
SG&A as % gross profit | 95.1 | 80.0 | ||||||||||
Operating margin % | 0.2 | 2.0 | ||||||||||
Pretax margin % | (0.7 | ) | 1.0 | |||||||||
INTEREST EXPENSE: | ||||||||||||
Floorplan interest expense | $ | (1,896 | ) | $ | (762 | ) | 148.8 | |||||
Floorplan assistance | — | — | — | |||||||||
Net floorplan expense | $ | (1,896 | ) | $ | (762 | ) | 148.8 | |||||
Other interest income, net | $ | 201 | $ | 12 | 1,575.0 | |||||||
(1) These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for the description of aforementioned adjustments. | ||||||||||||
(2) Results are for the period from the date of acquisition (February 28, 2013) through March 31, 2013. |
Group 1 Automotive, Inc. | ||||||||||||
Additional Information - Consolidated | ||||||||||||
(Unaudited) | ||||||||||||
(Dollars in thousands, except per unit amounts) | ||||||||||||
Three Months Ended March 31, | ||||||||||||
2014 | 2013 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 1,268,836 | $ | 1,110,235 | 14.3 | |||||||
Used vehicle retail sales | 549,897 | 471,399 | 16.7 | |||||||||
Used vehicle wholesale sales | 89,173 | 74,551 | 19.6 | |||||||||
Total used | 639,070 | 545,950 | 17.1 | |||||||||
Parts and service | 269,317 | 237,510 | 13.4 | |||||||||
Finance and insurance | 83,640 | 70,137 | 19.3 | |||||||||
Total | $ | 2,260,863 | $ | 1,963,832 | 15.1 | |||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 5.3 | 5.6 | ||||||||||
Used vehicle retail sales | 7.8 | 8.5 | ||||||||||
Used vehicle wholesale sales | 3.5 | 3.2 | ||||||||||
Total used | 7.2 | 7.8 | ||||||||||
Parts and service | 52.6 | 52.6 | ||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||
Total | 15.0 | 15.3 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 66,906 | $ | 62,636 | 6.8 | |||||||
Used vehicle retail sales | 42,801 | 40,276 | 6.3 | |||||||||
Used vehicle wholesale sales | 3,112 | 2,422 | 28.5 | |||||||||
Total used | 45,913 | 42,698 | 7.5 | |||||||||
Parts and service | 141,663 | 125,018 | 13.3 | |||||||||
Finance and insurance | 83,640 | 70,137 | 19.3 | |||||||||
Total | $ | 338,122 | $ | 300,489 | 12.5 | |||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 37,749 | 33,096 | 14.1 | |||||||||
Retail used vehicles sold | 26,877 | 23,238 | 15.7 | |||||||||
Wholesale used vehicles sold | 12,784 | 11,335 | 12.8 | |||||||||
Total used | 39,661 | 34,573 | 14.7 | |||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 33,612 | $ | 33,546 | 0.2 | |||||||
Used vehicle retail | $ | 20,460 | $ | 20,286 | 0.9 | |||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 1,772 | $ | 1,893 | (6.4 | ) | ||||||
Used vehicle retail sales | 1,592 | 1,733 | (8.1 | ) | ||||||||
Used vehicle wholesale sales | 243 | 214 | 13.6 | |||||||||
Total used | 1,158 | 1,235 | (6.2 | ) | ||||||||
Finance and insurance (per retail unit) | $ | 1,294 | $ | 1,245 | 3.9 | |||||||
OTHER: (1) | ||||||||||||
SG&A expenses | $ | 257,558 | $ | 226,687 | 13.6 | |||||||
SG&A as % revenues | 11.4 | 11.5 | ||||||||||
SG&A as % gross profit | 76.2 | 75.4 | ||||||||||
Operating margin % | 3.1 | 3.3 | ||||||||||
Pretax margin % | 2.2 | 2.4 | ||||||||||
INTEREST EXPENSE: | ||||||||||||
Floorplan interest | $ | (10,913 | ) | $ | (9,364 | ) | 16.5 | |||||
Floorplan assistance | 9,817 | 8,173 | 20.1 | |||||||||
Net floorplan expense | $ | (1,096 | ) | $ | (1,191 | ) | (8.0 | ) | ||||
Other interest expense, net | $ | (10,513 | ) | $ | (9,242 | ) | 13.8 | |||||
(1) These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments. |
Group 1 Automotive, Inc. | ||||||||||||
Additional Information - Same Store(1) | ||||||||||||
(Unaudited) | ||||||||||||
(Dollars in thousands, except per unit amounts) | ||||||||||||
Three Months Ended March 31, | ||||||||||||
2014 | 2013 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 1,114,243 | $ | 1,069,157 | 4.2 | |||||||
Used vehicle retail sales | 490,862 | 456,866 | 7.4 | |||||||||
Used vehicle wholesale sales | 79,910 | 72,001 | 11.0 | |||||||||
Total used | 570,772 | 528,867 | 7.9 | |||||||||
Parts and service | 241,273 | 226,938 | 6.3 | |||||||||
Finance and insurance | 78,266 | 67,849 | 15.4 | |||||||||
Total | $ | 2,004,554 | $ | 1,892,811 | 5.9 | |||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 5.2 | 5.7 | ||||||||||
Used vehicle retail sales | 7.7 | 8.5 | ||||||||||
Used vehicle wholesale sales | 3.5 | 3.3 | ||||||||||
Total used | 7.2 | 7.8 | ||||||||||
Parts and service | 52.8 | 52.6 | ||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||
Total | 15.2 | 15.3 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 58,362 | $ | 61,119 | (4.5 | ) | ||||||
Used vehicle retail sales | 38,000 | 39,006 | (2.6 | ) | ||||||||
Used vehicle wholesale sales | 2,836 | 2,409 | 17.7 | |||||||||
Total used | 40,836 | 41,415 | (1.4 | ) | ||||||||
Parts and service | 127,386 | 119,337 | 6.7 | |||||||||
Finance and insurance | 78,266 | 67,849 | 15.4 | |||||||||
Total | $ | 304,850 | $ | 289,720 | 5.2 | |||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 32,688 | 31,587 | 3.5 | |||||||||
Retail used vehicles sold | 23,588 | 22,456 | 5.0 | |||||||||
Wholesale used vehicles sold | 11,404 | 10,863 | 5.0 | |||||||||
Total used | 34,992 | 33,319 | 5.0 | |||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 34,087 | $ | 33,848 | 0.7 | |||||||
Used vehicle retail | $ | 20,810 | $ | 20,345 | 2.3 | |||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 1,785 | $ | 1,935 | (7.8 | ) | ||||||
Used vehicle retail sales | 1,611 | 1,737 | (7.3 | ) | ||||||||
Used vehicle wholesale sales | 249 | 222 | 12.2 | |||||||||
Total used | 1,167 | 1,243 | (6.1 | ) | ||||||||
Finance and insurance (per retail unit) | $ | 1,391 | $ | 1,255 | 10.8 | |||||||
OTHER: (2) | ||||||||||||
SG&A expenses | $ | 228,338 | $ | 216,809 | 5.3 | |||||||
SG&A as % revenues | 11.4 | 11.5 | ||||||||||
SG&A as % gross profit | 74.9 | 74.8 | ||||||||||
Operating margin % | 3.4 | 3.4 |
Group 1 Automotive, Inc. | |||||||||||
Reconciliation of Certain Non-GAAP Financial Measures - U.S. | |||||||||||
(Unaudited) | |||||||||||
(Dollars in thousands) | |||||||||||
Three Months Ended March 31, | |||||||||||
2014 | 2013 | % Change | |||||||||
SG&A RECONCILIATION: | |||||||||||
As reported | $ | 216,396 | $ | 209,484 | 3.3 | ||||||
Pre-tax adjustments: | |||||||||||
Catastrophic events | — | (808 | ) | ||||||||
Gain on dealership disposition | — | 574 | |||||||||
Acquisition costs | — | (5,159 | ) | ||||||||
Adjusted SG&A (1) | $ | 216,396 | $ | 204,091 | 6.0 | ||||||
SG&A AS % REVENUES: | |||||||||||
Unadjusted | 11.8 | 12.2 | |||||||||
Adjusted (1) | 11.8 | 11.9 | |||||||||
SG&A AS % GROSS PROFIT: | |||||||||||
Unadjusted | 74.7 | 76.8 | |||||||||
Adjusted (1) | 74.7 | 74.8 | |||||||||
OPERATING MARGIN %: | |||||||||||
Unadjusted | 3.5 | 3.2 | |||||||||
Adjusted (1),(2) | 3.5 | 3.6 | |||||||||
PRETAX MARGIN %: | |||||||||||
Unadjusted | 2.5 | 2.2 | |||||||||
Adjusted (1),(2) | 2.5 | 2.6 |
(1) | We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items. These adjusted measures are not measures of financial performance under GAAP. As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures. We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations. | ||||||
(2) | Excludes the impact of SG&A reconciling items above. |
Group 1 Automotive, Inc. | |||||||||||
Reconciliation of Certain Non-GAAP Financial Measures - U.K. | |||||||||||
(Unaudited) | |||||||||||
(Dollars in thousands) | |||||||||||
Three Months Ended March 31, | |||||||||||
2014 | 2013 | % Change | |||||||||
SG&A RECONCILIATION: | |||||||||||
As reported | $ | 22,472 | $ | 16,036 | 40.1 | ||||||
Pre-tax adjustments: | |||||||||||
Acquisition costs | — | (142 | ) | ||||||||
Adjusted SG&A (1) | $ | 22,472 | $ | 15,894 | 41.4 | ||||||
SG&A AS % REVENUES: | |||||||||||
Unadjusted | 9.1 | 9.4 | |||||||||
Adjusted (1) | 9.1 | 9.3 | |||||||||
SG&A AS % GROSS PROFIT: | |||||||||||
Unadjusted | 78.2 | 83.7 | |||||||||
Adjusted (1) | 78.2 | 82.9 | |||||||||
OPERATING MARGIN %: | |||||||||||
Unadjusted | 2.2 | 1.5 | |||||||||
Adjusted (1),(2) | 2.2 | 1.6 | |||||||||
PRETAX MARGIN %: | |||||||||||
Unadjusted | 1.9 | 1.2 | |||||||||
Adjusted (1),(2) | 1.9 | 1.3 |
(1) | We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items. These adjusted measures are not measures of financial performance under GAAP. As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures. We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations. | ||||||
(2) | Excludes the impact of SG&A reconciling item above. |
Group 1 Automotive, Inc. | ||||||||||
Reconciliation of Certain Non-GAAP Financial Measures - Brazil | ||||||||||
(Unaudited) | ||||||||||
(Dollars in thousands) | ||||||||||
Three Months Ended March 31, | ||||||||||
2014 | 2013 (4) | % Change | ||||||||
SG&A RECONCILIATION: | ||||||||||
As reported | $ | 18,690 | $ | 7,913 | 136.2 | |||||
Pre-tax adjustments: | ||||||||||
Acquisition costs | — | (1,211 | ) | |||||||
Adjusted SG&A (1) | $ | 18,690 | $ | 6,702 | 178.9 | |||||
SG&A AS % REVENUES: | ||||||||||
Unadjusted | 10.5 | 11.2 | ||||||||
Adjusted (1) | 10.5 | 9.4 | ||||||||
SG&A AS % GROSS PROFIT: | ||||||||||
Unadjusted | 95.1 | 94.5 | ||||||||
Adjusted (1) | 95.1 | 80.0 | ||||||||
OPERATING MARGIN % | ||||||||||
Unadjusted | 0.2 | 0.3 | ||||||||
Adjusted (1),(2) | 0.2 | 2.0 | ||||||||
PRETAX MARGIN %: | ||||||||||
Unadjusted | (0.7 | ) | (1.8 | ) | ||||||
Adjusted (1),(3) | (0.7 | ) | 1.0 | |||||||
(1) | We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items. These adjusted measures are not measures of financial performance under GAAP. As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures. We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations. | |||||||||
(2) | Excludes the impact of SG&A reconciling items above. | |||||||||
(3) | Excludes the impact of SG&A reconciling items above, as well as the other expense, net of $789, for the period from the date of acquisition (February 28, 2013) through March 31, 2013. | |||||||||
(4) | Results are for the period from the date of acquisition (February 28, 2013) through March 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 March 31, | ||||||||||||
2014 | 2013 | % Change | ||||||||||
NET INCOME RECONCILIATION: | ||||||||||||
As reported | $ | 31,303 | $ | 22,118 | 41.5 | |||||||
After-tax adjustments: | ||||||||||||
Catastrophic events (6) | — | 504 | ||||||||||
Gain on dealership disposition (7) | — | (356 | ) | |||||||||
Acquisition costs (5) | — | 6,968 | ||||||||||
Adjusted net income (1) | $ | 31,303 | $ | 29,234 | 7.1 | |||||||
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION | ||||||||||||
Adjusted net income | $ | 31,303 | $ | 29,234 | 7.1 | |||||||
Less: Adjusted earnings allocated to participating securities | 1,156 | 1,233 | (6.2 | ) | ||||||||
Adjusted net income available to diluted common shares | $ | 30,147 | $ | 28,001 | 7.7 | |||||||
DILUTED INCOME PER COMMON SHARE RECONCILIATION: | ||||||||||||
As reported | $ | 1.19 | $ | 0.88 | 35.2 | |||||||
After-tax adjustments: | ||||||||||||
Catastrophic events | — | 0.02 | ||||||||||
Gain on dealership disposition | — | (0.01 | ) | |||||||||
Acquisition costs | — | 0.27 | ||||||||||
Adjusted diluted income per share (1) | $ | 1.19 | $ | 1.16 | 2.6 | |||||||
SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 257,558 | $ | 233,433 | 10.3 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | — | (808 | ) | |||||||||
Gain on dealership disposition | — | 574 | ||||||||||
Acquisition costs | — | (6,512 | ) | |||||||||
Adjusted SG&A (1) | $ | 257,558 | $ | 226,687 | 13.6 | |||||||
SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 11.4 | 11.9 | ||||||||||
Adjusted (1) | 11.4 | 11.5 | ||||||||||
SG&A AS % GROSS PROFIT: | ||||||||||||
Unadjusted | 76.2 | 77.7 | ||||||||||
Adjusted (1) | 76.2 | 75.4 | ||||||||||
OPERATING MARGIN %: | ||||||||||||
Unadjusted | 3.1 | 3.0 | ||||||||||
Adjusted (1),(2) | 3.1 | 3.3 | ||||||||||
PRETAX MARGIN %: | ||||||||||||
Unadjusted | 2.2 | 2.0 | ||||||||||
Adjusted (1),(3) | 2.2 | 2.4 |
SAME STORE SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 228,338 | $ | 224,129 | 1.9 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | — | (808 | ) | |||||||||
Acquisition costs | — | (6,512 | ) | |||||||||
Adjusted Same Store SG&A (1) | $ | 228,338 | $ | 216,809 | 5.3 | |||||||
SAME STORE SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 11.4 | 11.8 | ||||||||||
Adjusted (1) | 11.4 | 11.5 | ||||||||||
SAME STORE SG&A AS % GROSS PROFIT: | ||||||||||||
Unadjusted | 74.9 | 77.4 | ||||||||||
Adjusted (1) | 74.9 | 74.8 | ||||||||||
SAME STORE OPERATING MARGIN %: | ||||||||||||
Unadjusted | 3.4 | 3.0 | ||||||||||
Adjusted (1),(4) | 3.4 | 3.4 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES RECONCILIATION: | ||||||||||||
Net cash provided by operating activities | $ | 133,192 | $ | 61,926 | 115.1 | |||||||
Change in floorplan notes payable-credit facility, excluding floorplan offset account and net acquisition and disposition related activity | (43,981 | ) | 39,419 | |||||||||
Change in floorplan notes payable-manufacturer affiliates associated with net acquisition and disposition related activity | (19,530 | ) | (3,274 | ) | ||||||||
Adjusted net cash provided by operating activities (1) | $ | 69,681 | $ | 98,071 | (28.9 | ) |
(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) | Excludes the impact of SG&A reconciling items above, as well as the other expense, net of $789, for the three months ended March 31, 2013. | |||||
(4) | Excludes the impact of Same Store SG&A reconciling items above. | |||||
(5) | Adjustment is net of tax benefit of $334 for the three months ended March 31, 2013, calculated utilizing the applicable federal and state tax rates for the adjustment. | |||||
(6) | Adjustment is net of tax benefit of $304 for the three months ended March 31, 2013, calculated utilizing the applicable federal and state tax rates for the adjustment. | |||||
(7) | Adjustment is net of tax provision of $218 for the three months ended March 31, 2013, calculated utilizing the applicable federal and state tax rates for the adjustment. |