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 27, 2015 | By: | /s/ John C. Rickel | ||
Date | John C. Rickel, Senior Vice President and Chief Financial Officer |
▪ | Total revenue increased 6.6 percent to an all-time quarterly record of $2.8 billion; total gross profit grew 6.3 percent, to $398.4 million, also an all-time quarterly record. On a constant currency basis, revenues were up 10.2 percent. |
▪ | New vehicle revenue increased 5.3 percent, reflecting 5.9 percent higher unit sales. On a Same Store basis, new unit sales increased 19.1 percent in the U.K., 4.4 percent in the U.S., and 1.3 percent in Brazil. |
▪ | Used vehicle retail revenue increased 11.6 percent, primarily reflecting 12.9 percent higher used retail unit sales. On a Same Store basis, used retail unit sales increased 10.3 percent in the U.S., 19.0 percent in the U.K., and 15.3 percent in Brazil. |
▪ | Parts and service gross profit increased 7.8 percent on revenue growth of 4.0 percent (7.0 percent on a constant currency basis). U.S. Same Store parts and service gross profit increased 9.4 percent on revenue growth of 6.6 percent. |
▪ | Finance and Insurance (F&I) gross profit increased 10.9 percent, as total retail units sold increased 8.7 percent and F&I per retail unit improved $27, to $1,352. U.S. Same Store F&I gross profit grew 10.8 percent, as F&I per retail unit improved $55, to $1,518. |
▪ | Adjusted selling, general and administrative (SG&A) expenses as a percent of gross profit improved 140 basis points, to 72.5 percent. On a GAAP basis, SG&A expenses as a percent of gross profit increased 200 basis points, to 72.5 percent. |
▪ | Adjusted operating margin improved 20 basis points, to 3.5 percent. On a GAAP basis, operating margin 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 September 30, | ||||||||||||
2015 | 2014 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 1,601,213 | $ | 1,521,246 | 5.3 | |||||||
Used vehicle retail sales | 687,637 | 615,924 | 11.6 | |||||||||
Used vehicle wholesale sales | 100,483 | 100,347 | 0.1 | |||||||||
Parts and service | 303,557 | 291,816 | 4.0 | |||||||||
Finance and insurance | 107,679 | 97,115 | 10.9 | |||||||||
Total revenues | 2,800,569 | 2,626,448 | 6.6 | |||||||||
COST OF SALES: | ||||||||||||
New vehicle retail sales | 1,521,721 | 1,441,016 | 5.6 | |||||||||
Used vehicle retail sales | 641,055 | 571,613 | 12.1 | |||||||||
Used vehicle wholesale sales | 102,318 | 101,643 | 0.7 | |||||||||
Parts and service | 137,093 | 137,467 | (0.3 | ) | ||||||||
Total cost of sales | 2,402,187 | 2,251,739 | 6.7 | |||||||||
GROSS PROFIT | 398,382 | 374,709 | 6.3 | |||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 289,012 | 264,233 | 9.4 | |||||||||
DEPRECIATION AND AMORTIZATION EXPENSE | 11,811 | 10,746 | 9.9 | |||||||||
ASSET IMPAIRMENTS | 916 | 9,373 | (90.2 | ) | ||||||||
OPERATING INCOME | 96,643 | 90,357 | 7.0 | |||||||||
OTHER EXPENSE: | ||||||||||||
Floorplan interest expense | (9,685 | ) | (10,452 | ) | (7.3 | ) | ||||||
Other interest expense, net | (13,922 | ) | (13,246 | ) | 5.1 | |||||||
Loss on extinguishment of long-term debt | — | (22,790 | ) | (100.0 | ) | |||||||
INCOME BEFORE INCOME TAXES | 73,036 | 43,869 | 66.5 | |||||||||
PROVISION FOR INCOME TAXES | (27,775 | ) | (17,707 | ) | 56.9 | |||||||
NET INCOME | $ | 45,261 | $ | 26,162 | 73.0 | |||||||
Earnings allocated to participating securities | $ | (1,729 | ) | $ | (1,000 | ) | 72.9 | |||||
Earnings available to diluted common shares | $ | 43,532 | $ | 25,162 | 73.0 | |||||||
DILUTED EARNINGS PER SHARE | $ | 1.88 | $ | 1.03 | 82.5 | |||||||
Weighted average dilutive common shares outstanding | 23,137 | 24,432 | (5.3 | ) | ||||||||
Weighted average participating securities | 925 | 971 | (4.7 | ) | ||||||||
Total weighted average shares outstanding | 24,062 | 25,403 | (5.3 | ) |
Nine Months Ended September 30, | ||||||||||||
2015 | 2014 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 4,468,200 | $ | 4,256,146 | 5.0 | |||||||
Used vehicle retail sales | 1,993,124 | 1,743,071 | 14.3 | |||||||||
Used vehicle wholesale sales | 302,186 | 284,491 | 6.2 | |||||||||
Parts and service | 888,939 | 844,340 | 5.3 | |||||||||
Finance and insurance | 307,454 | 270,901 | 13.5 | |||||||||
Total revenues | 7,959,903 | 7,398,949 | 7.6 | |||||||||
COST OF SALES: | ||||||||||||
New vehicle retail sales | 4,242,847 | 4,028,164 | 5.3 | |||||||||
Used vehicle retail sales | 1,854,361 | 1,610,293 | 15.2 | |||||||||
Used vehicle wholesale sales | 302,276 | 281,434 | 7.4 | |||||||||
Parts and service | 406,580 | 397,079 | 2.4 | |||||||||
Total cost of sales | 6,806,064 | 6,316,970 | 7.7 | |||||||||
GROSS PROFIT | 1,153,839 | 1,081,979 | 6.6 | |||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 841,050 | 793,761 | 6.0 | |||||||||
DEPRECIATION AND AMORTIZATION EXPENSE | 35,441 | 31,424 | 12.8 | |||||||||
ASSET IMPAIRMENTS | 1,955 | 11,094 | (82.4 | ) | ||||||||
OPERATING INCOME | 275,393 | 245,700 | 12.1 | |||||||||
OTHER EXPENSE: | ||||||||||||
Floorplan interest expense | (29,046 | ) | (31,695 | ) | (8.4 | ) | ||||||
Other interest expense, net | (42,061 | ) | (36,326 | ) | 15.8 | |||||||
Loss on extinguishment of long-term debt | — | (46,403 | ) | (100.0 | ) | |||||||
INCOME BEFORE INCOME TAXES | 204,286 | 131,276 | 55.6 | |||||||||
PROVISION FOR INCOME TAXES | (76,901 | ) | (56,949 | ) | 35.0 | |||||||
NET INCOME | $ | 127,385 | $ | 74,327 | 71.4 | |||||||
Earnings allocated to participating securities | $ | (4,905 | ) | $ | (2,769 | ) | 77.1 | |||||
Earnings available to diluted common shares | $ | 122,480 | $ | 71,558 | 71.2 | |||||||
DILUTED EARNINGS PER SHARE | $ | 5.26 | $ | 2.82 | 86.5 | |||||||
Weighted average dilutive common shares outstanding | 23,298 | 25,363 | (8.1 | ) | ||||||||
Weighted average participating securities | 934 | 973 | (4.0 | ) | ||||||||
Total weighted average shares outstanding | 24,232 | 26,336 | (8.0 | ) |
Group 1 Automotive, Inc. | ||||||||||||
Consolidated Balance Sheets | ||||||||||||
(Dollars in thousands) | ||||||||||||
September 30, | December 31, | |||||||||||
2015 | 2014 | % Change | ||||||||||
(Unaudited) | ||||||||||||
ASSETS: | ||||||||||||
CURRENT ASSETS: | ||||||||||||
Cash and cash equivalents | $ | 21,968 | $ | 40,975 | (46.4 | ) | ||||||
Contracts in transit and vehicle receivables, net | 205,636 | 237,448 | (13.4 | ) | ||||||||
Accounts and notes receivable, net | 147,110 | 151,330 | (2.8 | ) | ||||||||
Inventories, net | 1,634,421 | 1,556,705 | 5.0 | |||||||||
Deferred income taxes | 13,099 | 11,062 | 18.4 | |||||||||
Prepaid expenses and other current assets | 22,556 | 37,699 | (40.2 | ) | ||||||||
Total current assets | 2,044,790 | 2,035,219 | 0.5 | |||||||||
PROPERTY AND EQUIPMENT, net | 978,892 | 950,388 | 3.0 | |||||||||
GOODWILL AND INTANGIBLE FRANCHISE RIGHTS | 1,252,402 | 1,134,324 | 10.4 | |||||||||
OTHER ASSETS | 15,966 | 21,561 | (25.9 | ) | ||||||||
Total assets | $ | 4,292,050 | $ | 4,141,492 | 3.6 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY: | ||||||||||||
CURRENT LIABILITIES: | ||||||||||||
Floorplan notes payable - credit facility and other | $ | 1,177,513 | $ | 1,143,246 | 3.0 | |||||||
Offset account related to floorplan notes payable - credit facility | (28,073 | ) | (39,616 | ) | (29.1 | ) | ||||||
Floorplan notes payable - manufacturer affiliates | 347,657 | 307,656 | 13.0 | |||||||||
Offset account related to floorplan notes payable - manufacturer affiliates | (20,001 | ) | (22,500 | ) | (11.1 | ) | ||||||
Current maturities of long-term debt | 55,959 | 72,630 | (23.0 | ) | ||||||||
Accounts payable | 290,509 | 288,320 | 0.8 | |||||||||
Accrued expenses | 158,283 | 172,463 | (8.2 | ) | ||||||||
Total current liabilities | 1,981,847 | 1,922,199 | 3.1 | |||||||||
5.00% SENIOR NOTES (aggregate principal of $550,000 at September 30, 2015 and December 31, 2014) | 540,957 | 540,100 | 0.2 | |||||||||
REAL ESTATE CREDIT FACILITY, net of current maturities | 24,594 | 27,099 | (9.2 | ) | ||||||||
ACQUISITION LINE | 138,201 | 69,713 | 98.2 | |||||||||
OTHER REAL ESTATE RELATED AND LONG-TERM DEBT, net of current maturities | 331,194 | 319,984 | 3.5 | |||||||||
CAPITAL LEASE OBLIGATIONS RELATED TO REAL ESTATE, net of current maturities | 49,215 | 51,941 | (5.2 | ) | ||||||||
DEFERRED INCOME TAXES | 147,296 | 141,239 | 4.3 | |||||||||
LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES | 39,724 | 25,311 | 56.9 | |||||||||
OTHER LIABILITIES | 69,694 | 65,896 | 5.8 | |||||||||
STOCKHOLDERS' EQUITY: | ||||||||||||
Common stock | 257 | 257 | — | |||||||||
Additional paid-in capital | 288,754 | 286,854 | 0.7 | |||||||||
Retained earnings | 964,703 | 852,057 | 13.2 | |||||||||
Accumulated other comprehensive loss | (145,805 | ) | (81,984 | ) | 77.8 | |||||||
Treasury stock | (138,581 | ) | (79,174 | ) | 75.0 | |||||||
Total stockholders' equity | 969,328 | 978,010 | (0.9 | ) | ||||||||
Total liabilities and stockholders' equity | $ | 4,292,050 | $ | 4,141,492 | 3.6 |
Group 1 Automotive, Inc. | ||||||||||||||
Additional Information - Consolidated | ||||||||||||||
(Unaudited) | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2015 (%) | 2014 (%) | 2015 (%) | 2014 (%) | |||||||||||
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX: | ||||||||||||||
Region | Geographic Market | |||||||||||||
East | Massachusetts | 6.0 | 6.6 | 6.1 | 5.9 | |||||||||
Georgia | 4.5 | 4.8 | 4.6 | 4.7 | ||||||||||
New Jersey | 2.3 | 2.7 | 2.3 | 3.2 | ||||||||||
Florida | 2.3 | 1.4 | 2.0 | 1.4 | ||||||||||
New Hampshire | 2.1 | 2.1 | 2.0 | 2.2 | ||||||||||
Louisiana | 1.5 | 1.6 | 1.6 | 1.7 | ||||||||||
Mississippi | 1.5 | 1.4 | 1.5 | 1.4 | ||||||||||
South Carolina | 1.4 | 1.6 | 1.4 | 1.5 | ||||||||||
Alabama | 0.6 | 0.7 | 0.7 | 0.8 | ||||||||||
Maryland | 0.5 | 0.5 | 0.5 | 0.5 | ||||||||||
New York | — | 1.2 | — | 1.7 | ||||||||||
22.7 | 24.6 | 22.7 | 25.0 | |||||||||||
West | Texas | 38.6 | 37.1 | 38.4 | 35.4 | |||||||||
California | 9.5 | 9.3 | 9.7 | 9.6 | ||||||||||
Oklahoma | 7.8 | 8.6 | 7.7 | 8.4 | ||||||||||
Kansas | 2.0 | 2.1 | 2.1 | 2.3 | ||||||||||
Louisiana | 0.7 | 0.6 | 0.7 | 0.6 | ||||||||||
58.6 | 57.7 | 58.6 | 56.3 | |||||||||||
International | United Kingdom | 11.1 | 8.5 | 11.0 | 8.9 | |||||||||
Brazil | 7.6 | 9.2 | 7.7 | 9.8 | ||||||||||
100.0 | 100.0 | 100.0 | 100.0 | |||||||||||
NEW VEHICLE UNIT SALES BRAND MIX: | ||||||||||||||
Toyota/Scion/Lexus | 26.6 | 28.3 | 26.6 | 27.2 | ||||||||||
Ford/Lincoln | 11.6 | 10.4 | 11.6 | 11.1 | ||||||||||
BMW/MINI | 11.3 | 10.7 | 11.4 | 11.2 | ||||||||||
Honda/Acura | 11.1 | 10.5 | 10.9 | 11.2 | ||||||||||
Nissan | 8.0 | 8.9 | 8.4 | 9.3 | ||||||||||
Chevrolet/GMC/Buick/Cadillac | 7.8 | 7.0 | 7.5 | 6.0 | ||||||||||
Volkswagen/Audi/Porsche | 7.7 | 6.2 | 7.0 | 6.3 | ||||||||||
Hyundai/Kia | 5.4 | 5.7 | 5.8 | 5.5 | ||||||||||
Chrysler/Dodge/Jeep/RAM | 4.6 | 4.4 | 4.6 | 4.4 | ||||||||||
Mercedes-Benz/smart/Sprinter | 3.8 | 4.2 | 4.1 | 4.2 | ||||||||||
Other | 2.1 | 3.7 | 2.1 | 3.6 | ||||||||||
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, | ||||||||||||
2015 | 2014 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 1,327,049 | $ | 1,245,430 | 6.6 | |||||||
Used vehicle retail sales | 577,426 | 515,911 | 11.9 | |||||||||
Used vehicle wholesale sales | 74,161 | 75,272 | (1.5 | ) | ||||||||
Total used | 651,587 | 591,183 | 10.2 | |||||||||
Parts and service | 264,979 | 249,724 | 6.1 | |||||||||
Finance and insurance | 99,952 | 89,268 | 12.0 | |||||||||
Total | $ | 2,343,567 | $ | 2,175,605 | 7.7 | |||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 4.7 | 5.0 | ||||||||||
Used vehicle retail sales | 7.1 | 7.4 | ||||||||||
Used vehicle wholesale sales | (2.5 | ) | (1.9 | ) | ||||||||
Total used | 6.0 | 6.2 | ||||||||||
Parts and service | 55.4 | 53.6 | ||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||
Total | 14.9 | 14.8 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 62,428 | $ | 61,975 | 0.7 | |||||||
Used vehicle retail sales | 41,053 | 38,251 | 7.3 | |||||||||
Used vehicle wholesale sales | (1,855 | ) | (1,431 | ) | 29.6 | |||||||
Total used | 39,198 | 36,820 | 6.5 | |||||||||
Parts and service | 146,737 | 133,874 | 9.6 | |||||||||
Finance and insurance | 99,952 | 89,268 | 12.0 | |||||||||
Total | $ | 348,315 | $ | 321,937 | 8.2 | |||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 38,331 | 36,649 | 4.6 | |||||||||
Retail used vehicles sold | 27,664 | 24,917 | 11.0 | |||||||||
Wholesale used vehicles sold | 11,733 | 11,984 | (2.1 | ) | ||||||||
Total used | 39,397 | 36,901 | 6.8 | |||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 34,621 | $ | 33,983 | 1.9 | |||||||
Used vehicle retail | $ | 20,873 | $ | 20,705 | 0.8 | |||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 1,629 | $ | 1,691 | (3.7 | ) | ||||||
Used vehicle retail sales | 1,484 | 1,535 | (3.3 | ) | ||||||||
Used vehicle wholesale sales | (158 | ) | (119 | ) | 32.8 | |||||||
Total used | 995 | 998 | (0.3 | ) | ||||||||
Finance and insurance (per retail unit) | $ | 1,515 | $ | 1,450 | 4.5 | |||||||
OTHER: (1) | ||||||||||||
SG&A expenses | $ | 248,771 | $ | 234,849 | 5.9 | |||||||
SG&A as % revenues | 10.6 | 10.8 | ||||||||||
SG&A as % gross profit | 71.4 | 72.9 | ||||||||||
Operating margin % | 3.8 | 3.6 | ||||||||||
Pretax margin % | 2.9 | 2.6 | ||||||||||
INTEREST EXPENSE: | ||||||||||||
Floorplan interest | $ | (8,964 | ) | $ | (8,543 | ) | 4.9 | |||||
Floorplan assistance | 13,344 | 11,876 | 12.4 | |||||||||
Net floorplan income | $ | 4,380 | $ | 3,333 | 31.4 | |||||||
Other interest expense, net | $ | (12,737 | ) | $ | (12,265 | ) | 3.8 |
Nine Months Ended September 30, | ||||||||||||
2015 | 2014 | % Change | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 3,693,777 | $ | 3,449,303 | 7.1 | |||||||
Used vehicle retail sales | 1,661,932 | 1,440,473 | 15.4 | |||||||||
Used vehicle wholesale sales | 217,032 | 208,392 | 4.1 | |||||||||
Total used | 1,878,964 | 1,648,865 | 14.0 | |||||||||
Parts and service | 771,986 | 723,839 | 6.7 | |||||||||
Finance and insurance | 284,787 | 248,820 | 14.5 | |||||||||
Total | $ | 6,629,514 | $ | 6,070,827 | 9.2 | |||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 4.8 | 5.1 | ||||||||||
Used vehicle retail sales | 7.3 | 8.0 | ||||||||||
Used vehicle wholesale sales | (0.1 | ) | 0.9 | |||||||||
Total used | 6.5 | 7.1 | ||||||||||
Parts and service | 54.8 | 53.6 | ||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||
Total | 15.2 | 15.3 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 175,549 | $ | 175,006 | 0.3 | |||||||
Used vehicle retail sales | 121,906 | 114,613 | 6.4 | |||||||||
Used vehicle wholesale sales | (167 | ) | 1,964 | (108.5 | ) | |||||||
Total used | 121,739 | 116,577 | 4.4 | |||||||||
Parts and service | 422,912 | 388,042 | 9.0 | |||||||||
Finance and insurance | 284,787 | 248,820 | 14.5 | |||||||||
Total | $ | 1,004,987 | $ | 928,445 | 8.2 | |||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 106,651 | 101,281 | 5.3 | |||||||||
Retail used vehicles sold | 79,647 | 70,367 | 13.2 | |||||||||
Wholesale used vehicles sold | 33,542 | 32,395 | 3.5 | |||||||||
Total used | 113,189 | 102,762 | 10.1 | |||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 34,634 | $ | 34,057 | 1.7 | |||||||
Used vehicle retail | $ | 20,866 | $ | 20,471 | 1.9 | |||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 1,646 | $ | 1,728 | (4.7 | ) | ||||||
Used vehicle retail sales | 1,531 | 1,629 | (6.0 | ) | ||||||||
Used vehicle wholesale sales | (5 | ) | 61 | (108.2 | ) | |||||||
Total used | 1,076 | 1,134 | (5.1 | ) | ||||||||
Finance and insurance (per retail unit) | $ | 1,529 | $ | 1,450 | 5.4 | |||||||
OTHER: (1) | ||||||||||||
SG&A expenses | $ | 717,708 | $ | 677,142 | 6.0 | |||||||
SG&A as % revenues | 10.8 | 11.2 | ||||||||||
SG&A as % gross profit | 71.4 | 72.9 | ||||||||||
Operating margin % | 3.9 | 3.7 | ||||||||||
Pretax margin % | 2.9 | 2.7 | ||||||||||
INTEREST EXPENSE: | ||||||||||||
Floorplan interest | $ | (26,440 | ) | $ | (25,489 | ) | 3.7 | |||||
Floorplan assistance | 36,503 | 32,969 | 10.7 | |||||||||
Net floorplan income | $ | 10,063 | $ | 7,480 | 34.5 | |||||||
Other interest expense, net | $ | (38,534 | ) | $ | (34,327 | ) | 12.3 |
Group 1 Automotive, Inc. | |||||||||||||||
Additional Information - U.K. | |||||||||||||||
(Unaudited) | |||||||||||||||
(Dollars in thousands, except per unit amounts) | |||||||||||||||
Three Months Ended September 30, | |||||||||||||||
2015 | 2014 | % Change | Local Currency % Change | ||||||||||||
REVENUES: | |||||||||||||||
New vehicle retail sales | $ | 180,967 | $ | 134,859 | 34.2 | 44.0 | |||||||||
Used vehicle retail sales | 89,321 | 70,163 | 27.3 | 37.1 | |||||||||||
Used vehicle wholesale sales | 24,859 | 21,110 | 17.8 | 27.0 | |||||||||||
Total used | 114,180 | 91,273 | 25.1 | 34.8 | |||||||||||
Parts and service | 26,193 | 21,272 | 23.1 | 32.7 | |||||||||||
Finance and insurance | 6,091 | 4,797 | 27.0 | 36.6 | |||||||||||
Total | $ | 327,431 | $ | 252,201 | 29.8 | 39.6 | |||||||||
GROSS MARGIN %: | |||||||||||||||
New vehicle retail sales | 6.1 | 6.9 | |||||||||||||
Used vehicle retail sales | 5.2 | 5.9 | |||||||||||||
Used vehicle wholesale sales | (0.3 | ) | (0.8 | ) | |||||||||||
Total used | 4.0 | 4.4 | |||||||||||||
Parts and service | 55.6 | 55.2 | |||||||||||||
Finance and insurance | 100.0 | 100.0 | |||||||||||||
Total | 11.1 | 11.8 | |||||||||||||
GROSS PROFIT: | |||||||||||||||
New vehicle retail sales | $ | 11,060 | $ | 9,305 | 18.9 | 27.0 | |||||||||
Used vehicle retail sales | 4,631 | 4,165 | 11.2 | 19.5 | |||||||||||
Used vehicle wholesale sales | (73 | ) | (174 | ) | (58.0 | ) | (53.4 | ) | |||||||
Total used | 4,558 | 3,991 | 14.2 | 22.7 | |||||||||||
Parts and service | 14,554 | 11,746 | 23.9 | 33.5 | |||||||||||
Finance and insurance | 6,091 | 4,797 | 27.0 | 36.6 | |||||||||||
Total | $ | 36,263 | $ | 29,839 | 21.5 | 30.5 | |||||||||
UNITS SOLD: | |||||||||||||||
Retail new vehicles sold | 5,213 | 3,773 | 38.2 | ||||||||||||
Retail used vehicles sold | 3,582 | 2,649 | 35.2 | ||||||||||||
Wholesale used vehicles sold | 2,791 | 2,183 | 27.9 | ||||||||||||
Total used | 6,373 | 4,832 | 31.9 | ||||||||||||
AVERAGE RETAIL SALES PRICE: | |||||||||||||||
New vehicle retail | $ | 34,715 | $ | 35,743 | (2.9 | ) | 4.2 | ||||||||
Used vehicle retail | $ | 24,936 | $ | 26,487 | (5.9 | ) | 1.4 | ||||||||
GROSS PROFIT PER UNIT SOLD: | |||||||||||||||
New vehicle retail sales | $ | 2,122 | $ | 2,466 | (13.9 | ) | (8.1 | ) | |||||||
Used vehicle retail sales | 1,293 | 1,572 | (17.7 | ) | (11.6 | ) | |||||||||
Used vehicle wholesale sales | (26 | ) | (80 | ) | (67.5 | ) | (63.5 | ) | |||||||
Total used | 715 | 826 | (13.4 | ) | (6.9 | ) | |||||||||
Finance and insurance (per retail unit) | $ | 693 | $ | 747 | (7.2 | ) | (0.2 | ) | |||||||
OTHER: (1) | |||||||||||||||
SG&A expenses | $ | 28,124 | $ | 22,275 | 26.3 | 36.0 | |||||||||
SG&A as % revenues | 8.6 | 8.8 | |||||||||||||
SG&A as % gross profit | 77.6 | 74.7 | |||||||||||||
Operating margin % | 2.2 | 2.7 | |||||||||||||
Pretax margin % | 1.7 | 2.3 | |||||||||||||
INTEREST EXPENSE: | |||||||||||||||
Floorplan interest | $ | (625 | ) | $ | (419 | ) | 49.2 | ||||||||
Floorplan assistance | 201 | 246 | (18.3 | ) | |||||||||||
Net floorplan expense | $ | (424 | ) | $ | (173 | ) | 145.1 | ||||||||
Other interest expense, net | $ | (780 | ) | $ | (442 | ) | 76.5 |
Nine Months Ended September 30, | |||||||||||||||
2015 | 2014 | % Change | Local Currency % Change | ||||||||||||
REVENUES: | |||||||||||||||
New vehicle retail sales | $ | 492,424 | $ | 397,263 | 24.0 | 35.1 | |||||||||
Used vehicle retail sales | 269,629 | 214,900 | 25.5 | 36.7 | |||||||||||
Used vehicle wholesale sales | 78,692 | 62,304 | 26.3 | 37.8 | |||||||||||
Total used | 348,321 | 277,204 | 25.7 | 37.0 | |||||||||||
Parts and service | 76,983 | 62,843 | 22.5 | 33.4 | |||||||||||
Finance and insurance | 17,411 | 13,916 | 25.1 | 36.3 | |||||||||||
Total | $ | 935,139 | $ | 751,226 | 24.5 | 35.6 | |||||||||
GROSS MARGIN %: | |||||||||||||||
New vehicle retail sales | 6.3 | 6.8 | |||||||||||||
Used vehicle retail sales | 5.3 | 5.9 | |||||||||||||
Used vehicle wholesale sales | (0.5 | ) | — | ||||||||||||
Total used | 4.0 | 4.6 | |||||||||||||
Parts and service | 55.0 | 55.1 | |||||||||||||
Finance and insurance | 100.0 | 100.0 | |||||||||||||
Total | 11.2 | 11.7 | |||||||||||||
GROSS PROFIT: | |||||||||||||||
New vehicle retail sales | $ | 30,802 | $ | 26,843 | 14.7 | 25.0 | |||||||||
Used vehicle retail sales | 14,164 | 12,684 | 11.7 | 21.7 | |||||||||||
Used vehicle wholesale sales | (385 | ) | (4 | ) | 9,525.0 | 9,647.3 | |||||||||
Total used | 13,779 | 12,680 | 8.7 | 18.5 | |||||||||||
Parts and service | 42,345 | 34,655 | 22.2 | 33.1 | |||||||||||
Finance and insurance | 17,411 | 13,916 | 25.1 | 36.3 | |||||||||||
Total | $ | 104,337 | $ | 88,094 | 18.4 | 29.0 | |||||||||
UNITS SOLD: | |||||||||||||||
Retail new vehicles sold | 14,408 | 11,144 | 29.3 | ||||||||||||
Retail used vehicles sold | 10,863 | 8,108 | 34.0 | ||||||||||||
Wholesale used vehicles sold | 8,682 | 6,539 | 32.8 | ||||||||||||
Total used | 19,545 | 14,647 | 33.4 | ||||||||||||
AVERAGE RETAIL SALES PRICE: | |||||||||||||||
New vehicle retail | $ | 34,177 | $ | 35,648 | (4.1 | ) | 4.5 | ||||||||
Used vehicle retail | $ | 24,821 | $ | 26,505 | (6.4 | ) | 2.0 | ||||||||
GROSS PROFIT PER UNIT SOLD: | |||||||||||||||
New vehicle retail sales | $ | 2,138 | $ | 2,409 | (11.2 | ) | (3.3 | ) | |||||||
Used vehicle retail sales | 1,304 | 1,564 | (16.6 | ) | (9.1 | ) | |||||||||
Used vehicle wholesale sales | (44 | ) | (1 | ) | 4,300.0 | 7,241.4 | |||||||||
Total used | 705 | 866 | (18.6 | ) | (11.2 | ) | |||||||||
Finance and insurance (per retail unit) | $ | 689 | $ | 723 | (4.7 | ) | 3.8 | ||||||||
OTHER: (1) | |||||||||||||||
SG&A expenses | $ | 81,320 | $ | 67,063 | 21.3 | 32.1 | |||||||||
SG&A as % revenues | 8.7 | 8.9 | |||||||||||||
SG&A as % gross profit | 77.9 | 76.1 | |||||||||||||
Operating margin % | 2.1 | 2.5 | |||||||||||||
Pretax margin % | 1.7 | 2.1 | |||||||||||||
INTEREST EXPENSE: | |||||||||||||||
Floorplan interest | $ | (1,689 | ) | $ | (1,188 | ) | 42.2 | ||||||||
Floorplan assistance | 584 | 504 | 15.9 | ||||||||||||
Net floorplan expense | $ | (1,105 | ) | $ | (684 | ) | 61.5 | ||||||||
Other interest expense, net | $ | (2,339 | ) | $ | (1,402 | ) | 66.8 |
Group 1 Automotive, Inc. | |||||||||||||||
Additional Information - Brazil | |||||||||||||||
(Unaudited) | |||||||||||||||
(Dollars in thousands, except per unit amounts) | |||||||||||||||
Three Months Ended September 30, | |||||||||||||||
2015 | 2014 | % Change | Local Currency % Change | ||||||||||||
REVENUES: | |||||||||||||||
New vehicle retail sales | $ | 93,197 | $ | 140,957 | (33.9 | ) | 1.8 | ||||||||
Used vehicle retail sales | 20,890 | 29,850 | (30.0 | ) | 8.1 | ||||||||||
Used vehicle wholesale sales | 1,463 | 3,965 | (63.1 | ) | (44.5 | ) | |||||||||
Total used | 22,353 | 33,815 | (33.9 | ) | 2.0 | ||||||||||
Parts and service | 12,385 | 20,820 | (40.5 | ) | (8.1 | ) | |||||||||
Finance and insurance | 1,636 | 3,050 | (46.4 | ) | (15.7 | ) | |||||||||
Total | $ | 129,571 | $ | 198,642 | (34.8 | ) | 0.5 | ||||||||
GROSS MARGIN %: | |||||||||||||||
New vehicle retail sales | 6.4 | 6.3 | |||||||||||||
Used vehicle retail sales | 4.3 | 6.3 | |||||||||||||
Used vehicle wholesale sales | 6.4 | 7.8 | |||||||||||||
Total used | 4.4 | 6.5 | |||||||||||||
Parts and service | 41.8 | 41.9 | |||||||||||||
Finance and insurance | 100.0 | 100.0 | |||||||||||||
Total | 10.7 | 11.5 | |||||||||||||
GROSS PROFIT: | |||||||||||||||
New vehicle retail sales | $ | 6,004 | $ | 8,950 | (32.9 | ) | 2.7 | ||||||||
Used vehicle retail sales | 898 | 1,895 | (52.6 | ) | (26.8 | ) | |||||||||
Used vehicle wholesale sales | 93 | 309 | (69.9 | ) | (55.1 | ) | |||||||||
Total used | 991 | 2,204 | (55.0 | ) | (30.8 | ) | |||||||||
Parts and service | 5,173 | 8,729 | (40.7 | ) | (8.5 | ) | |||||||||
Finance and insurance | 1,636 | 3,050 | (46.4 | ) | (15.7 | ) | |||||||||
Total | $ | 13,804 | $ | 22,933 | (39.8 | ) | (7.2 | ) | |||||||
UNITS SOLD: | |||||||||||||||
Retail new vehicles sold | 3,582 | 4,072 | (12.0 | ) | |||||||||||
Retail used vehicles sold | 1,245 | 1,210 | 2.9 | ||||||||||||
Wholesale used vehicles sold | 402 | 583 | (31.0 | ) | |||||||||||
Total used | 1,647 | 1,793 | (8.1 | ) | |||||||||||
AVERAGE RETAIL SALES PRICE: | |||||||||||||||
New vehicle retail | $ | 26,018 | $ | 34,616 | (24.8 | ) | 15.7 | ||||||||
Used vehicle retail | $ | 16,779 | $ | 24,669 | (32.0 | ) | 5.1 | ||||||||
GROSS PROFIT PER UNIT SOLD: | |||||||||||||||
New vehicle retail sales | $ | 1,676 | $ | 2,198 | (23.7 | ) | 16.7 | ||||||||
Used vehicle retail sales | 721 | 1,566 | (54.0 | ) | (28.9 | ) | |||||||||
Used vehicle wholesale sales | 231 | 530 | (56.4 | ) | (34.8 | ) | |||||||||
Total used | 602 | 1,229 | (51.0 | ) | (24.7 | ) | |||||||||
Finance and insurance (per retail unit) | $ | 339 | $ | 577 | (41.2 | ) | (7.8 | ) | |||||||
OTHER: (1) | |||||||||||||||
SG&A expenses | $ | 12,117 | $ | 19,920 | (39.2 | ) | (6.3 | ) | |||||||
SG&A as % revenues | 9.4 | 10.0 | |||||||||||||
SG&A as % gross profit | 87.8 | 86.9 | |||||||||||||
Operating margin % | 1.0 | 1.2 | |||||||||||||
Pretax margin % | 0.6 | 0.2 | |||||||||||||
INTEREST EXPENSE: | |||||||||||||||
Floorplan interest | $ | (96 | ) | $ | (1,490 | ) | (93.6 | ) | |||||||
Floorplan assistance | — | — | — | ||||||||||||
Net floorplan expense | $ | (96 | ) | $ | (1,490 | ) | (93.6 | ) | |||||||
Other interest expense, net | $ | (405 | ) | $ | (539 | ) | (24.9 | ) |
Nine Months Ended September 30, | |||||||||||||||
2015 | 2014 | % Change | Local Currency % Change | ||||||||||||
REVENUES: | |||||||||||||||
New vehicle retail sales | $ | 281,999 | $ | 409,580 | (31.1 | ) | (5.4 | ) | |||||||
Used vehicle retail sales | 61,563 | 87,698 | (29.8 | ) | (3.8 | ) | |||||||||
Used vehicle wholesale sales | 6,462 | 13,795 | (53.2 | ) | (37.9 | ) | |||||||||
Total used | 68,025 | 101,493 | (33.0 | ) | (8.4 | ) | |||||||||
Parts and service | 39,970 | 57,658 | (30.7 | ) | (4.9 | ) | |||||||||
Finance and insurance | 5,256 | 8,165 | (35.6 | ) | (11.3 | ) | |||||||||
Total | $ | 395,250 | $ | 576,896 | (31.5 | ) | (6.0 | ) | |||||||
GROSS MARGIN %: | |||||||||||||||
New vehicle retail sales | 6.7 | 6.4 | |||||||||||||
Used vehicle retail sales | 4.4 | 6.2 | |||||||||||||
Used vehicle wholesale sales | 7.1 | 8.0 | |||||||||||||
Total used | 4.6 | 6.5 | |||||||||||||
Parts and service | 42.8 | 42.6 | |||||||||||||
Finance and insurance | 100.0 | 100.0 | |||||||||||||
Total | 11.3 | 11.3 | |||||||||||||
GROSS PROFIT: | |||||||||||||||
New vehicle retail sales | $ | 19,002 | $ | 26,133 | (27.3 | ) | (0.3 | ) | |||||||
Used vehicle retail sales | 2,693 | 5,481 | (50.9 | ) | (32.9 | ) | |||||||||
Used vehicle wholesale sales | 462 | 1,097 | (57.9 | ) | (44.6 | ) | |||||||||
Total used | 3,155 | 6,578 | (52.0 | ) | (34.8 | ) | |||||||||
Parts and service | 17,102 | 24,564 | (30.4 | ) | (4.7 | ) | |||||||||
Finance and insurance | 5,256 | 8,165 | (35.6 | ) | (11.3 | ) | |||||||||
Total | $ | 44,515 | $ | 65,440 | (32.0 | ) | (6.8 | ) | |||||||
UNITS SOLD: | |||||||||||||||
Retail new vehicles sold | 10,071 | 12,274 | (17.9 | ) | |||||||||||
Retail used vehicles sold | 3,403 | 3,899 | (12.7 | ) | |||||||||||
Wholesale used vehicles sold | 1,269 | 1,830 | (30.7 | ) | |||||||||||
Total used | 4,672 | 5,729 | (18.4 | ) | |||||||||||
AVERAGE RETAIL SALES PRICE: | |||||||||||||||
New vehicle retail | $ | 28,001 | $ | 33,370 | (16.1 | ) | 15.3 | ||||||||
Used vehicle retail | $ | 18,091 | $ | 22,492 | (19.6 | ) | 10.2 | ||||||||
GROSS PROFIT PER UNIT SOLD: | |||||||||||||||
New vehicle retail sales | $ | 1,887 | $ | 2,129 | (11.4 | ) | 21.5 | ||||||||
Used vehicle retail sales | 791 | 1,406 | (43.7 | ) | (23.1 | ) | |||||||||
Used vehicle wholesale sales | 364 | 599 | (39.2 | ) | (20.0 | ) | |||||||||
Total used | 675 | 1,148 | (41.2 | ) | (20.1 | ) | |||||||||
Finance and insurance (per retail unit) | $ | 390 | $ | 505 | (22.8 | ) | 6.5 | ||||||||
OTHER: (1) | |||||||||||||||
SG&A expenses | $ | 40,915 | $ | 60,342 | (32.2 | ) | (7.4 | ) | |||||||
SG&A as % revenues | 10.4 | 10.5 | |||||||||||||
SG&A as % gross profit | 91.9 | 92.2 | |||||||||||||
Operating margin % | 0.6 | 0.6 | |||||||||||||
Pretax margin % | — | (0.4 | ) | ||||||||||||
INTEREST EXPENSE: | |||||||||||||||
Floorplan interest | $ | (917 | ) | $ | (5,018 | ) | (81.7 | ) | |||||||
Floorplan assistance | — | — | — | ||||||||||||
Net floorplan expense | $ | (917 | ) | $ | (5,018 | ) | (81.7 | ) | |||||||
Other interest expense, net | $ | (1,188 | ) | $ | (597 | ) | 99.0 | ||||||||
(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. |
Group 1 Automotive, Inc. | |||||||||||||||
Additional Information - Consolidated | |||||||||||||||
(Unaudited) | |||||||||||||||
(Dollars in thousands, except per unit amounts) | |||||||||||||||
Three Months Ended September 30, | |||||||||||||||
2015 | 2014 | % Change | Local Currency % Change | ||||||||||||
REVENUES: | |||||||||||||||
New vehicle retail sales | $ | 1,601,213 | $ | 1,521,246 | 5.3 | 9.4 | |||||||||
Used vehicle retail sales | 687,637 | 615,924 | 11.6 | 14.6 | |||||||||||
Used vehicle wholesale sales | 100,483 | 100,347 | 0.1 | 2.8 | |||||||||||
Total used | 788,120 | 716,271 | 10.0 | 13.0 | |||||||||||
Parts and service | 303,557 | 291,816 | 4.0 | 7.0 | |||||||||||
Finance and insurance | 107,679 | 97,115 | 10.9 | 12.3 | |||||||||||
Total | $ | 2,800,569 | $ | 2,626,448 | 6.6 | 10.2 | |||||||||
GROSS MARGIN %: | |||||||||||||||
New vehicle retail sales | 5.0 | 5.3 | |||||||||||||
Used vehicle retail sales | 6.8 | 7.2 | |||||||||||||
Used vehicle wholesale sales | (1.8 | ) | (1.3 | ) | |||||||||||
Total used | 5.7 | 6.0 | |||||||||||||
Parts and service | 54.8 | 52.9 | |||||||||||||
Finance and insurance | 100.0 | 100.0 | |||||||||||||
Total | 14.2 | 14.3 | |||||||||||||
GROSS PROFIT: | |||||||||||||||
New vehicle retail sales | $ | 79,492 | $ | 80,230 | (0.9 | ) | 4.0 | ||||||||
Used vehicle retail sales | 46,582 | 44,311 | 5.1 | 7.0 | |||||||||||
Used vehicle wholesale sales | (1,835 | ) | (1,296 | ) | 41.6 | 38.8 | |||||||||
Total used | 44,747 | 43,015 | 4.0 | 6.1 | |||||||||||
Parts and service | 166,464 | 154,349 | 7.8 | 10.4 | |||||||||||
Finance and insurance | 107,679 | 97,115 | 10.9 | 12.3 | |||||||||||
Total | $ | 398,382 | $ | 374,709 | 6.3 | 9.0 | |||||||||
UNITS SOLD: | |||||||||||||||
Retail new vehicles sold | 47,126 | 44,494 | 5.9 | ||||||||||||
Retail used vehicles sold | 32,491 | 28,776 | 12.9 | ||||||||||||
Wholesale used vehicles sold | 14,926 | 14,750 | 1.2 | ||||||||||||
Total used | 47,417 | 43,526 | 8.9 | ||||||||||||
AVERAGE RETAIL SALES PRICE: | |||||||||||||||
New vehicle retail | $ | 33,977 | $ | 34,190 | (0.6 | ) | 3.3 | ||||||||
Used vehicle retail | $ | 21,164 | $ | 21,404 | (1.1 | ) | 1.5 | ||||||||
GROSS PROFIT PER UNIT SOLD: | |||||||||||||||
New vehicle retail sales | $ | 1,687 | $ | 1,803 | (6.4 | ) | (1.8 | ) | |||||||
Used vehicle retail sales | 1,434 | 1,540 | (6.9 | ) | (5.2 | ) | |||||||||
Used vehicle wholesale sales | (123 | ) | (88 | ) | 39.8 | 37.1 | |||||||||
Total used | 944 | 988 | (4.5 | ) | (2.6 | ) | |||||||||
Finance and insurance (per retail unit) | $ | 1,352 | $ | 1,325 | 2.0 | 3.4 | |||||||||
OTHER: (1) | |||||||||||||||
SG&A expenses | $ | 289,012 | $ | 277,044 | 4.3 | 7.5 | |||||||||
SG&A as % revenues | 10.3 | 10.5 | |||||||||||||
SG&A as % gross profit | 72.5 | 73.9 | |||||||||||||
Operating margin % | 3.5 | 3.3 | |||||||||||||
Pretax margin % | 2.6 | 2.4 | |||||||||||||
INTEREST EXPENSE: | |||||||||||||||
Floorplan interest | $ | (9,685 | ) | $ | (10,452 | ) | (7.3 | ) | |||||||
Floorplan assistance | 13,545 | 12,122 | 11.7 | ||||||||||||
Net floorplan expense | $ | 3,860 | $ | 1,670 | 131.1 | ||||||||||
Other interest expense, net | $ | (13,922 | ) | $ | (13,246 | ) | 5.1 |
Nine Months Ended September 30, | |||||||||||||||
2015 | 2014 | % Change | Local Currency % Change | ||||||||||||
REVENUES: | |||||||||||||||
New vehicle retail sales | $ | 4,468,200 | $ | 4,256,146 | 5.0 | 8.5 | |||||||||
Used vehicle retail sales | 1,993,124 | 1,743,071 | 14.3 | 17.0 | |||||||||||
Used vehicle wholesale sales | 302,186 | 284,491 | 6.2 | 9.5 | |||||||||||
Total used | 2,295,310 | 2,027,562 | 13.2 | 16.0 | |||||||||||
Parts and service | 888,939 | 844,340 | 5.3 | 7.9 | |||||||||||
Finance and insurance | 307,454 | 270,901 | 13.5 | 14.8 | |||||||||||
Total | $ | 7,959,903 | $ | 7,398,949 | 7.6 | 10.7 | |||||||||
GROSS MARGIN %: | |||||||||||||||
New vehicle retail sales | 5.0 | 5.4 | |||||||||||||
Used vehicle retail sales | 7.0 | 7.6 | |||||||||||||
Used vehicle wholesale sales | — | 1.1 | |||||||||||||
Total used | 6.0 | 6.7 | |||||||||||||
Parts and service | 54.3 | 53.0 | |||||||||||||
Finance and insurance | 100.0 | 100.0 | |||||||||||||
Total | 14.5 | 14.6 | |||||||||||||
GROSS PROFIT: | |||||||||||||||
New vehicle retail sales | $ | 225,353 | $ | 227,982 | (1.2 | ) | 3.1 | ||||||||
Used vehicle retail sales | 138,763 | 132,778 | 4.5 | 6.2 | |||||||||||
Used vehicle wholesale sales | (90 | ) | 3,057 | (102.9 | ) | (99.2 | ) | ||||||||
Total used | 138,673 | 135,835 | 2.1 | 3.8 | |||||||||||
Parts and service | 482,359 | 447,261 | 7.8 | 10.1 | |||||||||||
Finance and insurance | 307,454 | 270,901 | 13.5 | 14.8 | |||||||||||
Total | $ | 1,153,839 | $ | 1,081,979 | 6.6 | 9.0 | |||||||||
UNITS SOLD: | |||||||||||||||
Retail new vehicles sold | 131,130 | 124,699 | 5.2 | ||||||||||||
Retail used vehicles sold | 93,913 | 82,374 | 14.0 | ||||||||||||
Wholesale used vehicles sold | 43,493 | 40,764 | 6.7 | ||||||||||||
Total used | 137,406 | 123,138 | 11.6 | ||||||||||||
AVERAGE RETAIL SALES PRICE: | |||||||||||||||
New vehicle retail | $ | 34,075 | $ | 34,131 | (0.2 | ) | 3.2 | ||||||||
Used vehicle retail | $ | 21,223 | $ | 21,160 | 0.3 | 2.7 | |||||||||
GROSS PROFIT PER UNIT SOLD: | |||||||||||||||
New vehicle retail sales | $ | 1,719 | $ | 1,828 | (6.0 | ) | (1.9 | ) | |||||||
Used vehicle retail sales | 1,478 | 1,612 | (8.3 | ) | (6.8 | ) | |||||||||
Used vehicle wholesale sales | (2 | ) | 75 | (102.7 | ) | (99.2 | ) | ||||||||
Total used | 1,009 | 1,103 | (8.5 | ) | (6.9 | ) | |||||||||
Finance and insurance (per retail unit) | $ | 1,366 | $ | 1,308 | 4.4 | 5.6 | |||||||||
OTHER: (1) | |||||||||||||||
SG&A expenses | $ | 839,944 | $ | 804,547 | 4.4 | 7.2 | |||||||||
SG&A as % revenues | 10.6 | 10.9 | |||||||||||||
SG&A as % gross profit | 72.8 | 74.4 | |||||||||||||
Operating margin % | 3.5 | 3.3 | |||||||||||||
Pretax margin % | 2.6 | 2.4 | |||||||||||||
INTEREST EXPENSE: | |||||||||||||||
Floorplan interest | $ | (29,046 | ) | $ | (31,695 | ) | (8.4 | ) | |||||||
Floorplan assistance | 37,087 | 33,473 | 10.8 | ||||||||||||
Net floorplan expense | $ | 8,041 | $ | 1,778 | 352.2 | ||||||||||
Other interest expense, net | $ | (42,061 | ) | $ | (36,326 | ) | 15.8 | ||||||||
(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 U.S. (1) | |||||||||||
(Unaudited) | |||||||||||
(Dollars in thousands, except per unit amounts) | |||||||||||
Three Months Ended September 30, | |||||||||||
2015 | 2014 | % Change | |||||||||
REVENUES: | |||||||||||
New vehicle retail sales | $ | 1,272,198 | $ | 1,199,736 | 6.0 | ||||||
Used vehicle retail sales | 552,722 | 497,814 | 11.0 | ||||||||
Used vehicle wholesale sales | 66,731 | 72,359 | (7.8 | ) | |||||||
Total used | 619,453 | 570,173 | 8.6 | ||||||||
Parts and service | 255,710 | 239,943 | 6.6 | ||||||||
Finance and insurance | 96,952 | 87,504 | 10.8 | ||||||||
Total | $ | 2,244,313 | $ | 2,097,356 | 7.0 | ||||||
GROSS MARGIN %: | |||||||||||
New vehicle retail sales | 4.7 | 5.0 | |||||||||
Used vehicle retail sales | 7.2 | 7.5 | |||||||||
Used vehicle wholesale sales | (2.6 | ) | (1.8 | ) | |||||||
Total used | 6.1 | 6.3 | |||||||||
Parts and service | 55.1 | 53.7 | |||||||||
Finance and insurance | 100.0 | 100.0 | |||||||||
Total | 14.9 | 14.9 | |||||||||
GROSS PROFIT: | |||||||||||
New vehicle retail sales | $ | 59,341 | $ | 59,963 | (1.0 | ) | |||||
Used vehicle retail sales | 39,733 | 37,492 | 6.0 | ||||||||
Used vehicle wholesale sales | (1,745 | ) | (1,305 | ) | 33.7 | ||||||
Total used | 37,988 | 36,187 | 5.0 | ||||||||
Parts and service | 141,020 | 128,879 | 9.4 | ||||||||
Finance and insurance | 96,952 | 87,504 | 10.8 | ||||||||
Total | $ | 335,301 | $ | 312,533 | 7.3 | ||||||
UNITS SOLD: | |||||||||||
Retail new vehicles sold | 37,132 | 35,567 | 4.4 | ||||||||
Retail used vehicles sold | 26,756 | 24,261 | 10.3 | ||||||||
Wholesale used vehicles sold | 11,224 | 11,645 | (3.6 | ) | |||||||
Total used | 37,980 | 35,906 | 5.8 | ||||||||
AVERAGE RETAIL SALES PRICE: | |||||||||||
New vehicle retail | $ | 34,261 | $ | 33,732 | 1.6 | ||||||
Used vehicle retail | $ | 20,658 | $ | 20,519 | 0.7 | ||||||
GROSS PROFIT PER UNIT SOLD: | |||||||||||
New vehicle retail sales | $ | 1,598 | $ | 1,686 | (5.2 | ) | |||||
Used vehicle retail sales | 1,485 | 1,545 | (3.9 | ) | |||||||
Used vehicle wholesale sales | (155 | ) | (112 | ) | 38.4 | ||||||
Total used | 1,000 | 1,008 | (0.8 | ) | |||||||
Finance and insurance (per retail unit) | $ | 1,518 | $ | 1,463 | 3.8 | ||||||
OTHER: (2) | |||||||||||
SG&A expenses | $ | 239,585 | $ | 224,114 | 6.9 | ||||||
SG&A as % revenues | 10.7 | 10.7 | |||||||||
SG&A as % gross profit | 71.5 | 71.7 | |||||||||
Operating margin % | 3.8 | 3.8 |
Nine Months Ended September 30, | |||||||||||
2015 | 2014 | % Change | |||||||||
REVENUES: | |||||||||||
New vehicle retail sales | $ | 3,477,534 | $ | 3,292,040 | 5.6 | ||||||
Used vehicle retail sales | 1,549,938 | 1,384,939 | 11.9 | ||||||||
Used vehicle wholesale sales | 197,083 | 197,854 | (0.4 | ) | |||||||
Total used | 1,747,021 | 1,582,793 | 10.4 | ||||||||
Parts and service | 735,509 | 689,284 | 6.7 | ||||||||
Finance and insurance | 269,132 | 243,002 | 10.8 | ||||||||
Total | $ | 6,229,196 | $ | 5,807,119 | 7.3 | ||||||
GROSS MARGIN %: | |||||||||||
New vehicle retail sales | 4.7 | 5.1 | |||||||||
Used vehicle retail sales | 7.4 | 8.1 | |||||||||
Used vehicle wholesale sales | 0.1 | 1.1 | |||||||||
Total used | 6.5 | 7.2 | |||||||||
Parts and service | 54.5 | 53.6 | |||||||||
Finance and insurance | 100.0 | 100.0 | |||||||||
Total | 15.2 | 15.4 | |||||||||
GROSS PROFIT: | |||||||||||
New vehicle retail sales | $ | 161,991 | $ | 167,156 | (3.1 | ) | |||||
Used vehicle retail sales | 114,268 | 111,843 | 2.2 | ||||||||
Used vehicle wholesale sales | 142 | 2,101 | (93.2 | ) | |||||||
Total used | 114,410 | 113,944 | 0.4 | ||||||||
Parts and service | 400,502 | 369,343 | 8.4 | ||||||||
Finance and insurance | 269,132 | 243,002 | 10.8 | ||||||||
Total | $ | 946,035 | $ | 893,445 | 5.9 | ||||||
UNITS SOLD: | |||||||||||
Retail new vehicles sold | 101,468 | 97,436 | 4.1 | ||||||||
Retail used vehicles sold | 75,199 | 68,295 | 10.1 | ||||||||
Wholesale used vehicles sold | 31,532 | 31,229 | 1.0 | ||||||||
Total used | 106,731 | 99,524 | 7.2 | ||||||||
AVERAGE RETAIL SALES PRICE: | |||||||||||
New vehicle retail | $ | 34,272 | $ | 33,787 | 1.4 | ||||||
Used vehicle retail | $ | 20,611 | $ | 20,279 | 1.6 | ||||||
GROSS PROFIT PER UNIT SOLD: | |||||||||||
New vehicle retail sales | $ | 1,596 | $ | 1,716 | (7.0 | ) | |||||
Used vehicle retail sales | 1,520 | 1,638 | (7.2 | ) | |||||||
Used vehicle wholesale sales | 5 | 67 | (92.5 | ) | |||||||
Total used | 1,072 | 1,145 | (6.4 | ) | |||||||
Finance and insurance (per retail unit) | $ | 1,523 | $ | 1,466 | 3.9 | ||||||
OTHER: (2) | |||||||||||
SG&A expenses | $ | 675,873 | $ | 640,801 | 5.5 | ||||||
SG&A as % revenues | 10.9 | 11.0 | |||||||||
SG&A as % gross profit | 71.4 | 71.7 | |||||||||
Operating margin % | 3.9 | 3.9 |
Group 1 Automotive, Inc. | ||||||||||||||
Additional Information - Same Store U.K. (1) | ||||||||||||||
(Unaudited) | ||||||||||||||
(Dollars in thousands, except per unit amounts) | ||||||||||||||
Three Months Ended September 30, | ||||||||||||||
2015 | 2014 | % Change | Local Currency % Change | |||||||||||
REVENUES: | ||||||||||||||
New vehicle retail sales | $ | 151,967 | $ | 134,858 | 12.7 | 21.0 | ||||||||
Used vehicle retail sales | 77,395 | 70,164 | 10.3 | 18.8 | ||||||||||
Used vehicle wholesale sales | 19,303 | 21,110 | (8.6 | ) | (1.4 | ) | ||||||||
Total used | 96,698 | 91,274 | 5.9 | 14.1 | ||||||||||
Parts and service | 20,728 | 21,272 | (2.6 | ) | 5.0 | |||||||||
Finance and insurance | 5,289 | 4,797 | 10.3 | 18.6 | ||||||||||
Total | $ | 274,682 | $ | 252,201 | 8.9 | 17.1 | ||||||||
GROSS MARGIN %: | ||||||||||||||
New vehicle retail sales | 6.3 | 6.9 | ||||||||||||
Used vehicle retail sales | 5.2 | 5.9 | ||||||||||||
Used vehicle wholesale sales | (0.2 | ) | (0.8 | ) | ||||||||||
Total used | 4.1 | 4.4 | ||||||||||||
Parts and service | 57.4 | 55.2 | ||||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||||
Total | 11.2 | 11.8 | ||||||||||||
GROSS PROFIT: | ||||||||||||||
New vehicle retail sales | $ | 9,572 | $ | 9,303 | 2.9 | 9.9 | ||||||||
Used vehicle retail sales | 4,048 | 4,166 | (2.8 | ) | 4.5 | |||||||||
Used vehicle wholesale sales | (48 | ) | (175 | ) | (72.6 | ) | (68.8 | ) | ||||||
Total used | 4,000 | 3,991 | 0.2 | 7.7 | ||||||||||
Parts and service | 11,898 | 11,748 | 1.3 | 9.1 | ||||||||||
Finance and insurance | 5,289 | 4,797 | 10.3 | 18.6 | ||||||||||
Total | $ | 30,759 | $ | 29,839 | 3.1 | 10.7 | ||||||||
UNITS SOLD: | ||||||||||||||
Retail new vehicles sold | 4,494 | 3,773 | 19.1 | |||||||||||
Retail used vehicles sold | 3,153 | 2,649 | 19.0 | |||||||||||
Wholesale used vehicles sold | 2,328 | 2,183 | 6.6 | |||||||||||
Total used | 5,481 | 4,832 | 13.4 | |||||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||||
New vehicle retail | $ | 33,816 | $ | 35,743 | (5.4 | ) | 1.5 | |||||||
Used vehicle retail | $ | 24,546 | $ | 26,487 | (7.3 | ) | (0.2 | ) | ||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||||
New vehicle retail sales | $ | 2,130 | $ | 2,466 | (13.6 | ) | (7.7 | ) | ||||||
Used vehicle retail sales | 1,284 | 1,573 | (18.4 | ) | (12.2 | ) | ||||||||
Used vehicle wholesale sales | (21 | ) | (80 | ) | (73.8 | ) | (70.7 | ) | ||||||
Total used | 730 | 826 | (11.6 | ) | (5.1 | ) | ||||||||
Finance and insurance (per retail unit) | $ | 692 | $ | 747 | (7.4 | ) | (0.4 | ) | ||||||
OTHER: (2) | ||||||||||||||
SG&A expenses | $ | 23,100 | $ | 22,278 | 3.7 | 11.7 | ||||||||
SG&A as % revenues | 8.4 | 8.8 | ||||||||||||
SG&A as % gross profit | 75.1 | 74.7 | ||||||||||||
Operating margin % | 2.5 | 2.7 |
Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | % Change | Local Currency % Change | |||||||||||
REVENUES: | ||||||||||||||
New vehicle retail sales | $ | 410,135 | $ | 397,264 | 3.2 | 12.5 | ||||||||
Used vehicle retail sales | 225,908 | 214,900 | 5.1 | 14.5 | ||||||||||
Used vehicle wholesale sales | 60,167 | 62,304 | (3.4 | ) | 5.3 | |||||||||
Total used | 286,075 | 277,204 | 3.2 | 12.4 | ||||||||||
Parts and service | 60,632 | 62,838 | (3.5 | ) | 5.1 | |||||||||
Finance and insurance | 15,043 | 13,915 | 8.1 | 17.8 | ||||||||||
Total | $ | 771,885 | $ | 751,221 | 2.8 | 12.0 | ||||||||
GROSS MARGIN %: | ||||||||||||||
New vehicle retail sales | 6.3 | 6.8 | ||||||||||||
Used vehicle retail sales | 5.3 | 5.9 | ||||||||||||
Used vehicle wholesale sales | (0.3 | ) | — | |||||||||||
Total used | 4.1 | 4.6 | ||||||||||||
Parts and service | 56.9 | 55.1 | ||||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||||
Total | 11.3 | 11.7 | ||||||||||||
GROSS PROFIT: | ||||||||||||||
New vehicle retail sales | $ | 25,708 | $ | 26,844 | (4.2 | ) | 4.3 | |||||||
Used vehicle retail sales | 11,868 | 12,684 | (6.4 | ) | 2.0 | |||||||||
Used vehicle wholesale sales | (169 | ) | (5 | ) | 3,280.0 | 4,130.0 | ||||||||
Total used | 11,699 | 12,679 | (7.7 | ) | 0.6 | |||||||||
Parts and service | 34,480 | 34,651 | (0.5 | ) | 8.4 | |||||||||
Finance and insurance | 15,043 | 13,915 | 8.1 | 17.8 | ||||||||||
Total | $ | 86,930 | $ | 88,089 | (1.3 | ) | 7.5 | |||||||
UNITS SOLD: | ||||||||||||||
Retail new vehicles sold | 12,338 | 11,144 | 10.7 | |||||||||||
Retail used vehicles sold | 9,302 | 8,108 | 14.7 | |||||||||||
Wholesale used vehicles sold | 7,146 | 6,539 | 9.3 | |||||||||||
Total used | 16,448 | 14,647 | 12.3 | |||||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||||
New vehicle retail | $ | 33,242 | $ | 35,648 | (6.8 | ) | 1.6 | |||||||
Used vehicle retail | $ | 24,286 | $ | 26,505 | (8.4 | ) | (0.2 | ) | ||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||||
New vehicle retail sales | $ | 2,084 | $ | 2,409 | (13.5 | ) | (5.8 | ) | ||||||
Used vehicle retail sales | 1,276 | 1,564 | (18.4 | ) | (11.1 | ) | ||||||||
Used vehicle wholesale sales | (24 | ) | (1 | ) | 2,300.0 | 3,770.7 | ||||||||
Total used | 711 | 866 | (17.9 | ) | (10.4 | ) | ||||||||
Finance and insurance (per retail unit) | $ | 695 | $ | 723 | (3.9 | ) | 4.8 | |||||||
OTHER: (2) | ||||||||||||||
SG&A expenses | $ | 66,414 | $ | 67,064 | (1.0 | ) | 7.9 | |||||||
SG&A as % revenues | 8.6 | 8.9 | ||||||||||||
SG&A as % gross profit | 76.4 | 76.1 | ||||||||||||
Operating margin % | 2.4 | 2.5 |
Group 1 Automotive, Inc. | ||||||||||||||
Additional Information - Same Store Brazil (1) | ||||||||||||||
(Unaudited) | ||||||||||||||
(Dollars in thousands, except per unit amounts) | ||||||||||||||
Three Months Ended September 30, | ||||||||||||||
2015 | 2014 | % Change | Local Currency % Change | |||||||||||
REVENUES: | ||||||||||||||
New vehicle retail sales | $ | 90,002 | $ | 129,007 | (30.2 | ) | 7.4 | |||||||
Used vehicle retail sales | 20,342 | 27,499 | (26.0 | ) | 14.4 | |||||||||
Used vehicle wholesale sales | 1,463 | 3,159 | (53.7 | ) | (30.4 | ) | ||||||||
Total used | 21,805 | 30,658 | (28.9 | ) | 9.7 | |||||||||
Parts and service | 12,193 | 18,163 | (32.9 | ) | 3.7 | |||||||||
Finance and insurance | 1,594 | 2,857 | (44.2 | ) | (12.4 | ) | ||||||||
Total | $ | 125,594 | $ | 180,685 | (30.5 | ) | 7.1 | |||||||
GROSS MARGIN %: | ||||||||||||||
New vehicle retail sales | 6.4 | 6.4 | ||||||||||||
Used vehicle retail sales | 4.4 | 6.3 | ||||||||||||
Used vehicle wholesale sales | 6.4 | 7.3 | ||||||||||||
Total used | 4.5 | 6.4 | ||||||||||||
Parts and service | 41.7 | 43.1 | ||||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||||
Total | 10.7 | 11.6 | ||||||||||||
GROSS PROFIT: | ||||||||||||||
New vehicle retail sales | $ | 5,728 | $ | 8,257 | (30.6 | ) | 6.2 | |||||||
Used vehicle retail sales | 889 | 1,721 | (48.3 | ) | (20.0 | ) | ||||||||
Used vehicle wholesale sales | 93 | 231 | (59.7 | ) | (39.8 | ) | ||||||||
Total used | 982 | 1,952 | (49.7 | ) | (22.4 | ) | ||||||||
Parts and service | 5,079 | 7,825 | (35.1 | ) | 0.2 | |||||||||
Finance and insurance | 1,594 | 2,857 | (44.2 | ) | (12.4 | ) | ||||||||
Total | $ | 13,383 | $ | 20,891 | (35.9 | ) | (1.3 | ) | ||||||
UNITS SOLD: | ||||||||||||||
Retail new vehicles sold | 3,511 | 3,465 | 1.3 | |||||||||||
Retail used vehicles sold | 1,228 | 1,065 | 15.3 | |||||||||||
Wholesale used vehicles sold | 401 | 454 | (11.7 | ) | ||||||||||
Total used | 1,629 | 1,519 | 7.2 | |||||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||||
New vehicle retail | $ | 25,634 | $ | 37,231 | (31.1 | ) | 6.0 | |||||||
Used vehicle retail | $ | 16,565 | $ | 25,821 | (35.8 | ) | (0.8 | ) | ||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||||
New vehicle retail sales | $ | 1,631 | $ | 2,383 | (31.6 | ) | 4.8 | |||||||
Used vehicle retail sales | 724 | 1,616 | (55.2 | ) | (30.6 | ) | ||||||||
Used vehicle wholesale sales | 232 | 509 | (54.4 | ) | (31.9 | ) | ||||||||
Total used | 603 | 1,285 | (53.1 | ) | (27.6 | ) | ||||||||
Finance and insurance (per retail unit) | $ | 336 | $ | 631 | (46.8 | ) | (16.2 | ) | ||||||
OTHER: (2) | ||||||||||||||
SG&A expenses | $ | 11,911 | $ | 17,277 | (31.1 | ) | 6.3 | |||||||
SG&A as % revenues | 9.5 | 9.6 | ||||||||||||
SG&A as % gross profit | 89.0 | 82.7 | ||||||||||||
Operating margin % | 0.9 | 1.8 |
Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | % Change | Local Currency % Change | |||||||||||
REVENUES: | ||||||||||||||
New vehicle retail sales | $ | 271,960 | $ | 380,047 | (28.4 | ) | (1.7 | ) | ||||||
Used vehicle retail sales | 60,876 | 82,247 | (26.0 | ) | 1.4 | |||||||||
Used vehicle wholesale sales | 6,437 | 11,142 | (42.2 | ) | (23.4 | ) | ||||||||
Total used | 67,313 | 93,389 | (27.9 | ) | (1.6 | ) | ||||||||
Parts and service | 39,527 | 50,825 | (22.2 | ) | 6.7 | |||||||||
Finance and insurance | 5,172 | 7,425 | (30.3 | ) | (4.1 | ) | ||||||||
Total | $ | 383,972 | $ | 531,686 | (27.8 | ) | (0.9 | ) | ||||||
GROSS MARGIN %: | ||||||||||||||
New vehicle retail sales | 6.7 | 6.2 | ||||||||||||
Used vehicle retail sales | 4.4 | 6.2 | ||||||||||||
Used vehicle wholesale sales | 7.2 | 7.6 | ||||||||||||
Total used | 4.7 | 6.4 | ||||||||||||
Parts and service | 42.8 | 43.9 | ||||||||||||
Finance and insurance | 100.0 | 100.0 | ||||||||||||
Total | 11.3 | 11.2 | ||||||||||||
GROSS PROFIT: | ||||||||||||||
New vehicle retail sales | $ | 18,242 | $ | 23,647 | (22.9 | ) | 5.7 | |||||||
Used vehicle retail sales | 2,691 | 5,088 | (47.1 | ) | (27.8 | ) | ||||||||
Used vehicle wholesale sales | 463 | 843 | (45.1 | ) | (27.8 | ) | ||||||||
Total used | 3,154 | 5,931 | (46.8 | ) | (27.8 | ) | ||||||||
Parts and service | 16,908 | 22,292 | (24.2 | ) | 3.7 | |||||||||
Finance and insurance | 5,172 | 7,425 | (30.3 | ) | (4.1 | ) | ||||||||
Total | $ | 43,476 | $ | 59,295 | (26.7 | ) | 0.4 | |||||||
UNITS SOLD: | ||||||||||||||
Retail new vehicles sold | 9,874 | 10,746 | (8.1 | ) | ||||||||||
Retail used vehicles sold | 3,379 | 3,523 | (4.1 | ) | ||||||||||
Wholesale used vehicles sold | 1,265 | 1,443 | (12.3 | ) | ||||||||||
Total used | 4,644 | 4,966 | (6.5 | ) | ||||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||||
New vehicle retail | $ | 27,543 | $ | 35,366 | (22.1 | ) | 7.0 | |||||||
Used vehicle retail | $ | 18,016 | $ | 23,346 | (22.8 | ) | 5.7 | |||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||||
New vehicle retail sales | $ | 1,847 | $ | 2,201 | (16.1 | ) | 15.1 | |||||||
Used vehicle retail sales | 796 | 1,444 | (44.9 | ) | (24.7 | ) | ||||||||
Used vehicle wholesale sales | 366 | 584 | (37.3 | ) | (17.6 | ) | ||||||||
Total used | 679 | 1,194 | (43.1 | ) | (22.8 | ) | ||||||||
Finance and insurance (per retail unit) | $ | 390 | $ | 520 | (25.0 | ) | 3.2 | |||||||
OTHER: (2) | ||||||||||||||
SG&A expenses | $ | 39,429 | $ | 52,736 | (25.2 | ) | 2.3 | |||||||
SG&A as % revenues | 10.3 | 9.9 | ||||||||||||
SG&A as % gross profit | 90.7 | 88.9 | ||||||||||||
Operating margin % | 0.7 | 1.0 |
Group 1 Automotive, Inc. | |||||||||||||||
Additional Information - Same Store Consolidated (1) | |||||||||||||||
(Unaudited) | |||||||||||||||
(Dollars in thousands, except per unit amounts) | |||||||||||||||
Three Months Ended September 30, | |||||||||||||||
2015 | 2014 | % Change | Local Currency % Change | ||||||||||||
REVENUES: | |||||||||||||||
New vehicle retail sales | $ | 1,514,167 | $ | 1,463,601 | 3.5 | 7.5 | |||||||||
Used vehicle retail sales | 650,459 | 595,477 | 9.2 | 12.1 | |||||||||||
Used vehicle wholesale sales | 87,497 | 96,628 | (9.4 | ) | (7.1 | ) | |||||||||
Total used | 737,956 | 692,105 | 6.6 | 9.4 | |||||||||||
Parts and service | 288,631 | 279,378 | 3.3 | 6.3 | |||||||||||
Finance and insurance | 103,835 | 95,158 | 9.1 | 10.5 | |||||||||||
Total | $ | 2,644,589 | $ | 2,530,242 | 4.5 | 8.0 | |||||||||
GROSS MARGIN %: | |||||||||||||||
New vehicle retail sales | 4.9 | 5.3 | |||||||||||||
Used vehicle retail sales | 6.9 | 7.3 | |||||||||||||
Used vehicle wholesale sales | (1.9 | ) | (1.3 | ) | |||||||||||
Total used | 5.8 | 6.1 | |||||||||||||
Parts and service | 54.7 | 53.1 | |||||||||||||
Finance and insurance | 100.0 | 100.0 | |||||||||||||
Total | 14.3 | 14.4 | |||||||||||||
GROSS PROFIT: | |||||||||||||||
New vehicle retail sales | $ | 74,641 | $ | 77,523 | (3.7 | ) | 1.0 | ||||||||
Used vehicle retail sales | 44,670 | 43,379 | 3.0 | 4.8 | |||||||||||
Used vehicle wholesale sales | (1,700 | ) | (1,249 | ) | 36.1 | 32.9 | |||||||||
Total used | 42,970 | 42,130 | 2.0 | 4.0 | |||||||||||
Parts and service | 157,997 | 148,452 | 6.4 | 8.9 | |||||||||||
Finance and insurance | 103,835 | 95,158 | 9.1 | 10.5 | |||||||||||
Total | $ | 379,443 | $ | 363,263 | 4.5 | 7.1 | |||||||||
UNITS SOLD: | |||||||||||||||
Retail new vehicles sold | 45,137 | 42,805 | 5.4 | ||||||||||||
Retail used vehicles sold | 31,137 | 27,975 | 11.3 | ||||||||||||
Wholesale used vehicles sold | 13,953 | 14,282 | (2.3 | ) | |||||||||||
Total used | 45,090 | 42,257 | 6.7 | ||||||||||||
AVERAGE RETAIL SALES PRICE: | |||||||||||||||
New vehicle retail | $ | 33,546 | $ | 34,192 | (1.9 | ) | 2.0 | ||||||||
Used vehicle retail | $ | 20,890 | $ | 21,286 | (1.9 | ) | 0.7 | ||||||||
GROSS PROFIT PER UNIT SOLD: | |||||||||||||||
New vehicle retail sales | $ | 1,654 | $ | 1,811 | (8.7 | ) | (4.2 | ) | |||||||
Used vehicle retail sales | 1,435 | 1,551 | (7.5 | ) | (5.8 | ) | |||||||||
Used vehicle wholesale sales | (122 | ) | (87 | ) | 40.2 | 36.1 | |||||||||
Total used | 953 | 997 | (4.4 | ) | (2.6 | ) | |||||||||
Finance and insurance (per retail unit) | $ | 1,361 | $ | 1,344 | 1.3 | 2.5 | |||||||||
OTHER: (2) | |||||||||||||||
SG&A expenses | $ | 274,596 | $ | 263,669 | 4.1 | 7.3 | |||||||||
SG&A as % revenues | 10.4 | 10.4 | |||||||||||||
SG&A as % gross profit | 72.4 | 72.6 | |||||||||||||
Operating margin % | 3.5 | 3.5 |
Nine Months Ended September 30, | |||||||||||||||
2015 | 2014 | % Change | Local Currency % Change | ||||||||||||
REVENUES: | |||||||||||||||
New vehicle retail sales | $ | 4,159,629 | $ | 4,069,351 | 2.2 | 5.6 | |||||||||
Used vehicle retail sales | 1,836,722 | 1,682,086 | 9.2 | 11.7 | |||||||||||
Used vehicle wholesale sales | 263,687 | 271,300 | (2.8 | ) | — | ||||||||||
Total used | 2,100,409 | 1,953,386 | 7.5 | 10.1 | |||||||||||
Parts and service | 835,668 | 802,947 | 4.1 | 6.6 | |||||||||||
Finance and insurance | 289,347 | 264,342 | 9.5 | 10.7 | |||||||||||
Total | $ | 7,385,053 | $ | 7,090,026 | 4.2 | 7.1 | |||||||||
GROSS MARGIN %: | |||||||||||||||
New vehicle retail sales | 5.0 | 5.3 | |||||||||||||
Used vehicle retail sales | 7.0 | 7.7 | |||||||||||||
Used vehicle wholesale sales | 0.2 | 1.1 | |||||||||||||
Total used | 6.2 | 6.8 | |||||||||||||
Parts and service | 54.1 | 53.1 | |||||||||||||
Finance and insurance | 100.0 | 100.0 | |||||||||||||
Total | 14.6 | 14.7 | |||||||||||||
GROSS PROFIT: | |||||||||||||||
New vehicle retail sales | $ | 205,941 | $ | 217,647 | (5.4 | ) | (1.2 | ) | |||||||
Used vehicle retail sales | 128,827 | 129,615 | (0.6 | ) | 1.0 | ||||||||||
Used vehicle wholesale sales | 436 | 2,939 | (85.2 | ) | (80.6 | ) | |||||||||
Total used | 129,263 | 132,554 | (2.5 | ) | (0.8 | ) | |||||||||
Parts and service | 451,890 | 426,286 | 6.0 | 8.2 | |||||||||||
Finance and insurance | 289,347 | 264,342 | 9.5 | 10.7 | |||||||||||
Total | $ | 1,076,441 | $ | 1,040,829 | 3.4 | 5.7 | |||||||||
UNITS SOLD: | |||||||||||||||
Retail new vehicles sold | 123,680 | 119,326 | 3.6 | ||||||||||||
Retail used vehicles sold | 87,880 | 79,926 | 10.0 | ||||||||||||
Wholesale used vehicles sold | 39,943 | 39,211 | 1.9 | ||||||||||||
Total used | 127,823 | 119,137 | 7.3 | ||||||||||||
AVERAGE RETAIL SALES PRICE: | |||||||||||||||
New vehicle retail | $ | 33,632 | $ | 34,103 | (1.4 | ) | 1.9 | ||||||||
Used vehicle retail | $ | 20,900 | $ | 21,046 | (0.7 | ) | 1.6 | ||||||||
GROSS PROFIT PER UNIT SOLD: | |||||||||||||||
New vehicle retail sales | $ | 1,665 | $ | 1,824 | (8.7 | ) | (4.7 | ) | |||||||
Used vehicle retail sales | 1,466 | 1,622 | (9.6 | ) | (8.2 | ) | |||||||||
Used vehicle wholesale sales | 11 | 75 | (85.3 | ) | (81.0 | ) | |||||||||
Total used | 1,011 | 1,113 | (9.2 | ) | (7.6 | ) | |||||||||
Finance and insurance (per retail unit) | $ | 1,368 | $ | 1,327 | 3.1 | 4.3 | |||||||||
OTHER: (2) | |||||||||||||||
SG&A expenses | $ | 781,716 | $ | 760,602 | 2.8 | 5.5 | |||||||||
SG&A as % revenues | 10.6 | 10.7 | |||||||||||||
SG&A as % gross profit | 72.6 | 73.1 | |||||||||||||
Operating margin % | 3.5 | 3.5 |
Group 1 Automotive, Inc. | ||||||||||||
Reconciliation of Certain Non-GAAP Financial Measures - U.S. | ||||||||||||
(Unaudited) | ||||||||||||
(Dollars in thousands) | ||||||||||||
Three Months Ended September 30, | ||||||||||||
2015 | 2014 | % Change | ||||||||||
SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 248,771 | $ | 221,645 | 12.2 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | — | (1,099 | ) | |||||||||
Gain (loss) on real estate and dealership transactions | — | 14,303 | ||||||||||
Adjusted SG&A (1) | $ | 248,771 | $ | 234,849 | 5.9 | |||||||
SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 10.6 | 10.2 | ||||||||||
Adjusted (1) | 10.6 | 10.8 | ||||||||||
SG&A AS % GROSS PROFIT: | ||||||||||||
Unadjusted | 71.4 | 68.8 | ||||||||||
Adjusted (1) | 71.4 | 72.9 | ||||||||||
OPERATING MARGIN %: | ||||||||||||
Unadjusted | 3.8 | 4.0 | ||||||||||
Adjusted (1),(2) | 3.8 | 3.6 | ||||||||||
PRETAX MARGIN %: | ||||||||||||
Unadjusted | 2.9 | 2.0 | ||||||||||
Adjusted (1),(3) | 2.9 | 2.6 | ||||||||||
SAME STORE SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 239,585 | $ | 225,236 | 6.4 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | — | (1,099 | ) | |||||||||
Gain (loss) on real estate and dealership transactions | — | (23 | ) | |||||||||
Adjusted Same Store SG&A (1) | $ | 239,585 | $ | 224,114 | 6.9 | |||||||
SAME STORE SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 10.7 | 10.7 | ||||||||||
Adjusted (1) | 10.7 | 10.7 | ||||||||||
SAME STORE SG&A AS % GROSS PROFIT: | ||||||||||||
Unadjusted | 71.5 | 72.1 | ||||||||||
Adjusted (1) | 71.5 | 71.7 | ||||||||||
SAME STORE OPERATING MARGIN %: | ||||||||||||
Unadjusted | 3.8 | 3.7 | ||||||||||
Adjusted (1),(4) | 3.8 | 3.8 |
Nine Months Ended September 30, | |||||||||||
2015 | 2014 | % Change | |||||||||
SG&A RECONCILIATION: | |||||||||||
As reported | $ | 718,607 | $ | 665,547 | 8.0 | ||||||
Pre-tax adjustments: | |||||||||||
Catastrophic events | (951 | ) | (2,775 | ) | |||||||
Gain (loss) on real estate and dealership transactions | 1,052 | 14,812 | |||||||||
Legal settlements | (1,000 | ) | (442 | ) | |||||||
Adjusted SG&A (1) | $ | 717,708 | $ | 677,142 | 6.0 | ||||||
SG&A AS % REVENUES: | |||||||||||
Unadjusted | 10.8 | 11.0 | |||||||||
Adjusted (1) | 10.8 | 11.2 | |||||||||
SG&A AS % GROSS PROFIT: | |||||||||||
Unadjusted | 71.5 | 71.7 | |||||||||
Adjusted (1) | 71.4 | 72.9 | |||||||||
OPERATING MARGIN %: | |||||||||||
Unadjusted | 3.8 | 3.8 | |||||||||
Adjusted (1),(2) | 3.9 | 3.7 | |||||||||
PRETAX MARGIN %: | |||||||||||
Unadjusted | 2.9 | 2.0 | |||||||||
Adjusted (1),(3) | 2.9 | 2.7 | |||||||||
SAME STORE SG&A RECONCILIATION: | |||||||||||
As reported | $ | 678,188 | $ | 644,041 | 5.3 | ||||||
Pre-tax adjustments: | |||||||||||
Catastrophic events | (951 | ) | (2,775 | ) | |||||||
Gain (loss) on real estate and dealership transactions | (364 | ) | (23 | ) | |||||||
Legal settlements | (1,000 | ) | (442 | ) | |||||||
Adjusted Same Store SG&A (1) | $ | 675,873 | $ | 640,801 | 5.5 | ||||||
SAME STORE SG&A AS % REVENUES: | |||||||||||
Unadjusted | 10.9 | 11.1 | |||||||||
Adjusted (1) | 10.9 | 11.0 | |||||||||
SAME STORE SG&A AS % GROSS PROFIT: | |||||||||||
Unadjusted | 71.7 | 72.1 | |||||||||
Adjusted (1) | 71.4 | 71.7 | |||||||||
SAME STORE OPERATING MARGIN %: | |||||||||||
Unadjusted | 3.8 | 3.8 | |||||||||
Adjusted (1),(4) | 3.9 | 3.9 | |||||||||
(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, as well as non-cash asset impairment charges of $288 and $786 for the three and nine months ended September 30, 2015, respectively, and $4,252 and $5,973 for the three and nine months ended September 30, 2014, respectively. | ||||||||||
(3) | Excludes the impact of SG&A reconciling items above, loss on redemption of long-term debt of $22,790 and $46,403 for the three and nine months ended September 30, 2014, respectively, as well as non-cash asset impairment charges of $288 and $786 for the three and nine months ended September 30, 2015 and $4,252 and $5,973 for the three and nine months ended September 30, 2014, respectively. | ||||||||||
(4) | Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $288 and $786 for the three and nine months ended September 30, 2015, respectively, and $293 and $2,014 for the three and nine months ended September 30, 2014, respectively. |
Group 1 Automotive, Inc. | |||||||||
Reconciliation of Certain Non-GAAP Financial Measures - U.K. | |||||||||
(Unaudited) | |||||||||
(Dollars in thousands) | |||||||||
Three Months Ended September 30, | |||||||||
2015 | 2014 | % Change | |||||||
OPERATING MARGIN %: | |||||||||
Unadjusted | 2.1 | 2.7 | |||||||
Adjusted (1),(3) | 2.2 | 2.7 | |||||||
PRETAX MARGIN %: | |||||||||
Unadjusted | 1.6 | 2.3 | |||||||
Adjusted (1),(3) | 1.7 | 2.3 | |||||||
SAME STORE OPERATING MARGIN %: | |||||||||
Unadjusted | 2.4 | 2.7 | |||||||
Adjusted (1),(3) | 2.5 | 2.7 |
Nine Months Ended September 30, | ||||||||||||
2015 | 2014 | % Change | ||||||||||
SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 81,528 | $ | 67,063 | 21.6 | |||||||
Pre-tax adjustments: | ||||||||||||
Severance costs | (208 | ) | — | |||||||||
Adjusted SG&A (1) | $ | 81,320 | $ | 67,063 | 21.3 | |||||||
SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 8.7 | 8.9 | ||||||||||
Adjusted (1) | 8.7 | 8.9 | ||||||||||
SG&A AS % GROSS PROFIT: | ||||||||||||
Unadjusted | 78.1 | 76.1 | ||||||||||
Adjusted (1) | 77.9 | 76.1 | ||||||||||
OPERATING MARGIN %: | ||||||||||||
Unadjusted | 2.1 | 2.5 | ||||||||||
Adjusted (1),(2) | 2.1 | 2.5 | ||||||||||
PRETAX MARGIN %: | ||||||||||||
Unadjusted | 1.6 | 2.1 | ||||||||||
Adjusted (1),(2) | 1.7 | 2.1 | ||||||||||
SAME STORE OPERATING MARGIN %: | ||||||||||||
Unadjusted | 2.3 | 2.5 | ||||||||||
Adjusted (1),(3) | 2.4 | 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 item above, as well as non-cash asset impairment charges of $333 for the three and nine months ended September 30, 2015. | |||||||||||
(3) | Excludes the impact of non-cash asset impairment charges of $333 for the three and nine months ended September 30, 2015. |
Group 1 Automotive, Inc. | |||||||||||
Reconciliation of Certain Non-GAAP Financial Measures - Brazil | |||||||||||
(Unaudited) | |||||||||||
(Dollars in thousands) | |||||||||||
Three Months Ended September 30, | |||||||||||
2015 | 2014 | % Change | |||||||||
SG&A RECONCILIATION: | |||||||||||
As reported | $ | 12,117 | $ | 20,313 | (40.3 | ) | |||||
Pre-tax adjustments: | |||||||||||
Severance costs | — | (393 | ) | ||||||||
Adjusted SG&A (1) | $ | 12,117 | $ | 19,920 | (39.2 | ) | |||||
SG&A AS % REVENUES: | |||||||||||
Unadjusted | 9.4 | 10.2 | |||||||||
Adjusted (1) | 9.4 | 10.0 | |||||||||
SG&A AS % GROSS PROFIT: | |||||||||||
Unadjusted | 87.8 | 88.6 | |||||||||
Adjusted (1) | 87.8 | 86.9 | |||||||||
OPERATING MARGIN % | |||||||||||
Unadjusted | 0.8 | (1.6 | ) | ||||||||
Adjusted (1),(2) | 1.0 | 1.2 | |||||||||
PRETAX MARGIN %: | |||||||||||
Unadjusted | 0.4 | (2.6 | ) | ||||||||
Adjusted (1),(2) | 0.6 | 0.2 | |||||||||
SAME STORE SG&A RECONCILIATION: | |||||||||||
As reported | $ | 11,911 | $ | 17,566 | (32.2 | ) | |||||
Pre-tax adjustments: | |||||||||||
Severance costs | — | (289 | ) | ||||||||
Adjusted Same Store SG&A (1) | $ | 11,911 | $ | 17,277 | (31.1 | ) | |||||
SAME STORE SG&A AS % REVENUES: | |||||||||||
Unadjusted | 9.5 | 9.7 | |||||||||
Adjusted (1) | 9.5 | 9.6 | |||||||||
SAME STORE SG&A AS % GROSS PROFIT: | |||||||||||
Unadjusted | 89.0 | 84.1 | |||||||||
Adjusted (1) | 89.0 | 82.7 | |||||||||
SAME STORE OPERATING MARGIN %: | |||||||||||
Unadjusted | 0.7 | 1.6 | |||||||||
Adjusted (1),(3) | 0.9 | 1.8 |
Nine Months Ended September 30, | |||||||||||
2015 | 2014 | % Change | |||||||||
SG&A RECONCILIATION: | |||||||||||
As reported | $ | 40,915 | $ | 61,151 | (33.1 | ) | |||||
Pre-tax adjustments: | |||||||||||
Severance costs | — | (393 | ) | ||||||||
Foreign transaction tax | — | (416 | ) | ||||||||
Adjusted SG&A (1) | $ | 40,915 | $ | 60,342 | (32.2 | ) | |||||
SG&A AS % REVENUES: | |||||||||||
Unadjusted | 10.4 | 10.6 | |||||||||
Adjusted (1) | 10.4 | 10.5 | |||||||||
SG&A AS % GROSS PROFIT: | |||||||||||
Unadjusted | 91.9 | 93.4 | |||||||||
Adjusted (1) | 91.9 | 92.2 | |||||||||
OPERATING MARGIN %: | |||||||||||
Unadjusted | 0.3 | (0.4 | ) | ||||||||
Adjusted (1),(2) | 0.6 | 0.6 | |||||||||
PRETAX MARGIN %: | |||||||||||
Unadjusted | (0.2 | ) | (1.4 | ) | |||||||
Adjusted (1),(2) | — | (0.4 | ) | ||||||||
SAME STORE SG&A RECONCILIATION: | |||||||||||
As reported | $ | 39,429 | $ | 53,441 | (26.2 | ) | |||||
Pre-tax adjustments: | |||||||||||
Severance costs | — | (289 | ) | ||||||||
Foreign transaction tax | — | (416 | ) | ||||||||
Adjusted Same Store SG&A (1) | $ | 39,429 | $ | 52,736 | (25.2 | ) | |||||
SAME STORE SG&A AS % REVENUES: | |||||||||||
Unadjusted | 10.3 | 10.1 | |||||||||
Adjusted (1) | 10.3 | 9.9 | |||||||||
SAME STORE SG&A AS % GROSS PROFIT: | |||||||||||
Unadjusted | 90.7 | 90.1 | |||||||||
Adjusted (1) | 90.7 | 88.9 | |||||||||
SAME STORE OPERATING MARGIN %: | |||||||||||
Unadjusted | 0.6 | 0.8 | |||||||||
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, as well as non-cash asset impairment charges of $298 and $839 for the three and nine months ended September 30, 2015, respectively, and $5,121 for the three and nine months ended September 30, 2014. | ||||||||||
(3) | Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $298 for the three and nine months ended September 30, 2015. |
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, | ||||||||||||
2015 | 2014 | % Change | ||||||||||
NET INCOME RECONCILIATION: | ||||||||||||
As reported | $ | 45,261 | $ | 26,162 | 73.0 | |||||||
After-tax adjustments: | ||||||||||||
Catastrophic events (5) | — | 671 | ||||||||||
(Gain) loss on real estate and dealership transactions (6) | — | (8,572 | ) | |||||||||
Severance costs (7) | — | 388 | ||||||||||
Non-cash asset impairment (10) | 776 | 6,559 | ||||||||||
Loss on extinguishment of long-term debt (11) | — | 17,934 | ||||||||||
Non-deductible goodwill | — | (3,358 | ) | |||||||||
Adjusted net income (1) | $ | 46,037 | $ | 39,784 | 15.7 | |||||||
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION: | ||||||||||||
Adjusted net income (1) | $ | 46,037 | $ | 39,784 | 15.7 | |||||||
Less: Adjusted earnings allocated to participating securities | 1,759 | 1,520 | 15.7 | |||||||||
Adjusted net income available to diluted common shares (1) | $ | 44,278 | $ | 38,264 | 15.7 | |||||||
DILUTED INCOME PER COMMON SHARE RECONCILIATION: | ||||||||||||
As reported | $ | 1.88 | $ | 1.03 | 82.5 | |||||||
After-tax adjustments: | ||||||||||||
Catastrophic events | — | 0.03 | ||||||||||
Gain (loss) on real estate and dealership transactions | — | (0.34 | ) | |||||||||
Severance costs | — | 0.01 | ||||||||||
Non-cash asset impairment | 0.03 | 0.26 | ||||||||||
Loss on extinguishment of long-term debt | — | 0.71 | ||||||||||
Non-deductible goodwill | — | (0.13 | ) | |||||||||
Adjusted diluted income per share (1) | $ | 1.91 | $ | 1.57 | 21.7 | |||||||
SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 289,012 | $ | 264,233 | 9.4 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | — | (1,099 | ) | |||||||||
Gain (loss) on real estate and dealership transactions | — | 14,303 | ||||||||||
Severance costs | — | (393 | ) | |||||||||
Adjusted SG&A (1) | $ | 289,012 | $ | 277,044 | 4.3 | |||||||
SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 10.3 | 10.1 | ||||||||||
Adjusted (1) | 10.3 | 10.5 | ||||||||||
SG&A AS % GROSS PROFIT: | ||||||||||||
Unadjusted | 72.5 | 70.5 | ||||||||||
Adjusted (1) | 72.5 | 73.9 | ||||||||||
OPERATING MARGIN %: | ||||||||||||
Unadjusted | 3.5 | 3.4 | ||||||||||
Adjusted (1),(2) | 3.5 | 3.3 | ||||||||||
PRETAX MARGIN %: | ||||||||||||
Unadjusted | 2.6 | 1.7 | ||||||||||
Adjusted (1),(3) | 2.6 | 2.4 | ||||||||||
SAME STORE SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 274,596 | $ | 265,080 | 3.6 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | — | (1,099 | ) | |||||||||
Gain (loss) on real estate and dealership transactions | — | (23 | ) | |||||||||
Severance costs | — | (289 | ) | |||||||||
Adjusted Same Store SG&A (1) | $ | 274,596 | $ | 263,669 | 4.1 | |||||||
SAME STORE SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 10.4 | 10.5 | ||||||||||
Adjusted (1) | 10.4 | 10.4 | ||||||||||
SAME STORE SG&A AS % GROSS PROFIT: | ||||||||||||
Unadjusted | 72.4 | 73.0 | ||||||||||
Adjusted (1) | 72.4 | 72.6 | ||||||||||
SAME STORE OPERATING MARGIN %: | ||||||||||||
Unadjusted | 3.5 | 3.5 | ||||||||||
Adjusted (1),(4) | 3.5 | 3.5 |
Nine Months Ended September 30, | ||||||||||||
2015 | 2014 | % Change | ||||||||||
NET INCOME RECONCILIATION: | ||||||||||||
As reported | $ | 127,385 | $ | 74,327 | 71.4 | |||||||
After-tax adjustments: | ||||||||||||
Catastrophic events (5) | 593 | 1,710 | ||||||||||
(Gain) loss on real estate and dealership transactions (6) | (601 | ) | (8,887 | ) | ||||||||
Severance costs (7) | 167 | 388 | ||||||||||
Legal settlements (8) | 610 | 274 | ||||||||||
Foreign transaction tax (9) | — | 274 | ||||||||||
Non-cash asset impairment (10) | 1,624 | 7,626 | ||||||||||
Loss on extinguishment of long-term debt (11) | — | 38,711 | ||||||||||
Non-deductible goodwill | — | (3,358 | ) | |||||||||
Adjusted net income (1) | $ | 129,778 | $ | 111,065 | 16.8 | |||||||
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION: | ||||||||||||
Adjusted net income (1) | $ | 129,778 | $ | 111,065 | 16.8 | |||||||
Less: Adjusted earnings allocated to participating securities | 4,997 | 4,126 | 21.1 | |||||||||
Adjusted net income available to diluted common shares (1) | $ | 124,781 | $ | 106,939 | 16.7 | |||||||
DILUTED INCOME PER COMMON SHARE RECONCILIATION: | ||||||||||||
As reported | $ | 5.26 | $ | 2.82 | 86.5 | |||||||
After-tax adjustments: | ||||||||||||
Catastrophic events | 0.02 | 0.07 | ||||||||||
Gain (loss) on real estate and dealership transactions | (0.02 | ) | (0.33 | ) | ||||||||
Severance costs | 0.01 | 0.01 | ||||||||||
Legal settlements | 0.02 | 0.01 | ||||||||||
Foreign transaction tax | — | 0.01 | ||||||||||
Non-cash asset impairment | 0.07 | 0.29 | ||||||||||
Loss on extinguishment of long-term debt | — | 1.47 | ||||||||||
Non-deductible goodwill | — | (0.13 | ) | |||||||||
Adjusted diluted income per share (1) | $ | 5.36 | $ | 4.22 | 27.0 | |||||||
SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 841,050 | $ | 793,761 | 6.0 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | (951 | ) | (2,775 | ) | ||||||||
Gain (loss) on real estate and dealership transactions | 1,053 | 14,812 | ||||||||||
Severance costs | (208 | ) | (393 | ) | ||||||||
Legal settlements | (1,000 | ) | (442 | ) | ||||||||
Foreign transaction tax | — | (416 | ) | |||||||||
Adjusted SG&A (1) | $ | 839,944 | $ | 804,547 | 4.4 | |||||||
SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 10.6 | 10.7 | ||||||||||
Adjusted (1) | 10.6 | 10.9 | ||||||||||
SG&A AS % GROSS PROFIT: | ||||||||||||
Unadjusted | 72.9 | 73.4 | ||||||||||
Adjusted (1) | 72.8 | 74.4 |
OPERATING MARGIN %: | ||||||||||||
Unadjusted | 3.5 | 3.3 | ||||||||||
Adjusted (1),(2) | 3.5 | 3.3 | ||||||||||
PRETAX MARGIN %: | ||||||||||||
Unadjusted | 2.6 | 1.8 | ||||||||||
Adjusted (1),(3) | 2.6 | 2.4 | ||||||||||
SAME STORE SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 784,031 | $ | 764,546 | 2.5 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | (951 | ) | (2,774 | ) | ||||||||
Gain (loss) on real estate and dealership transactions | (364 | ) | (23 | ) | ||||||||
Severance costs | — | (289 | ) | |||||||||
Legal settlements | (1,000 | ) | (442 | ) | ||||||||
Foreign transaction tax | — | (416 | ) | |||||||||
Adjusted Same Store SG&A (1) | $ | 781,716 | $ | 760,602 | 2.8 | |||||||
SAME STORE SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 10.6 | 10.8 | ||||||||||
Adjusted (1) | 10.6 | 10.7 | ||||||||||
SAME STORE SG&A AS % GROSS PROFIT: | ||||||||||||
Unadjusted | 72.8 | 73.5 | ||||||||||
Adjusted (1) | 72.6 | 73.1 | ||||||||||
SAME STORE OPERATING MARGIN %: | ||||||||||||
Unadjusted | 3.5 | 3.4 | ||||||||||
Adjusted (1),(4) | 3.5 | 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) | 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 loss on redemption of long-term debt of $22,790 and $46,403 for the three and nine months ended September 30, 2014, respectively. | |||||||||||
(4) | Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $916 and $1,418 for the three and nine months ended September 30, 2015, respectively, and $293 and $2,014 for the three and nine months ended September 30, 2014, respectively. | |||||||||||
(5) | Adjustment is net of tax benefit of $359 for the nine months ended September 30, 2015, and $428 and $1,065 for the three and nine months ended September 30, 2014, respectively, calculated utilizing the applicable federal and state tax rates for adjustment. | |||||||||||
(6) | Adjustment is net of tax provision of $452 for the nine months ended September 30, 2015, and $5,731 and $5,925 for the three and nine months ended September 30, 2014, respectively, calculated utilizing the applicable federal and state tax rates for adjustment. | |||||||||||
(7) | Adjustment is net of tax benefit of $42 for the nine months ended September 30, 2015, and $5 for the three and nine months ended September 30, 2014, calculated utilizing the applicable federal and state tax rates for adjustment. | |||||||||||
(8) | Adjustment is net of tax benefit of $390 for the nine months ended September 30, 2015, and $168 for the nine months ended September 30, 2014, calculated utilizing the applicable federal and state tax rates for adjustment. | |||||||||||
(9) | Adjustment is net of tax benefit of $141 for the nine months ended September 30, 2014, calculated utilizing the applicable federal and state tax rates for adjustment. | |||||||||||
(10) | Adjustment is net of tax benefit of $143 and $334 for the three and nine months ended September 30, 2015, respectively, and $2,815 and $3,469 for the three and nine months ended September 30, 2014, respectively, calculated utilizing the applicable federal and state tax rates for adjustment. | |||||||||||
(11) | Adjustment is net of tax benefit of $4,856 and $7,692 for the three and nine months ended September 30, 2014, respectively, calculated utilizing the applicable federal and state tax rates for adjustment. |