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 26, 2017 | By: | /s/ John C. Rickel | ||
Date | John C. Rickel, Senior Vice President and Chief Financial Officer |
▪ | Total revenue increased 6.7 percent (increased 6.6 percent) to record $3.0 billion; total gross profit increased 6.1 percent (increased 6.0 percent) to a record $431.4 million. |
▪ | New vehicle revenues increased 7.7 percent (increased 7.5 percent) on a 6.0 percent increase in unit sales. New vehicle gross profit increased 9.8 percent (increased 9.6 percent) to a record $88.3 million. U.S. new vehicle margins were up 6.1 percent, or $108 per unit, to $1,891. |
▪ | Retail used vehicle revenues increased 5.8 percent (increased 5.7 percent) on a 4.1 percent increase in unit sales. Retail used vehicle gross profit increased 2.5 percent (increased 2.5 percent) to $47.1 million as the unit sales increase was partially offset by a slight margin decrease of 1.4 percent (decreased 1.5 percent), or $20 per unit, to $1,372. |
▪ | Parts and service gross profit increased 6.8 percent (increased 6.7 percent) on revenue growth of 7.4 percent (increased 7.3 percent). Same Store parts and service gross profit increased 4.5 percent (increased 4.4 percent) on revenue growth of 5.1 percent (increased 5.0 percent). U.S. Same Store parts and service revenue increased 4.7 percent. |
▪ | Finance and Insurance (F&I) gross profit per retail unit (PRU) decreased 2.9 percent (decreased 3.0 percent) to $1,343 per retail unit. Adjusted F&I gross profit PRU (a non-GAAP measure) increased 2.8 percent (increased 2.8 percent) to $1,422, reflecting increases in all three regions. |
▪ | Selling, General and Administrative (SG&A) expenses as a percent of gross profit increased 260 basis points to 76.1 percent. Adjusted SG&A expenses as a percent of gross profit (a non-GAAP measure) decreased 80 basis points to 72.8 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, | ||||||||||||
2017 | 2016 | % Increase/(Decrease) | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 1,710,241 | $ | 1,587,952 | 7.7 | |||||||
Used vehicle retail sales | 743,038 | 702,620 | 5.8 | |||||||||
Used vehicle wholesale sales | 104,827 | 104,218 | 0.6 | |||||||||
Parts and service | 343,193 | 319,676 | 7.4 | |||||||||
Finance, insurance and other, net | 110,993 | 108,710 | 2.1 | |||||||||
Total revenues | 3,012,292 | 2,823,176 | 6.7 | |||||||||
COST OF SALES: | ||||||||||||
New vehicle retail sales | 1,621,909 | 1,507,517 | 7.6 | |||||||||
Used vehicle retail sales | 695,915 | 656,652 | 6.0 | |||||||||
Used vehicle wholesale sales | 105,012 | 106,077 | (1.0 | ) | ||||||||
Parts and service | 158,036 | 146,262 | 8.0 | |||||||||
Total cost of sales | 2,580,872 | 2,416,508 | 6.8 | |||||||||
GROSS PROFIT | 431,420 | 406,668 | 6.1 | |||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 328,327 | 299,006 | 9.8 | |||||||||
DEPRECIATION AND AMORTIZATION EXPENSE | 15,059 | 12,891 | 16.8 | |||||||||
ASSET IMPAIRMENTS | 9,526 | 10,855 | (12.2 | ) | ||||||||
OPERATING INCOME | 78,508 | 83,916 | (6.4 | ) | ||||||||
OTHER EXPENSE: | ||||||||||||
Floorplan interest expense | (13,491 | ) | (11,135 | ) | 21.2 | |||||||
Other interest expense, net | (17,874 | ) | (17,094 | ) | 4.6 | |||||||
INCOME BEFORE INCOME TAXES | 47,143 | 55,687 | (15.3 | ) | ||||||||
PROVISION FOR INCOME TAXES | (17,262 | ) | (20,321 | ) | (15.1 | ) | ||||||
NET INCOME | $ | 29,881 | $ | 35,366 | (15.5 | ) | ||||||
Less: Earnings allocated to participating securities | $ | 1,023 | $ | 1,426 | (28.3 | ) | ||||||
Earnings available to diluted common shares | $ | 28,858 | $ | 33,940 | (15.0 | ) | ||||||
DILUTED EARNINGS PER SHARE | $ | 1.43 | $ | 1.65 | (13.3 | ) | ||||||
Weighted average dilutive common shares outstanding | 20,225 | 20,578 | (1.7 | ) | ||||||||
Weighted average participating securities | 724 | 872 | (17.0 | ) | ||||||||
Total weighted average shares outstanding | 20,949 | 21,450 | (2.3 | ) |
Nine Months Ended September 30, | ||||||||||||
2017 | 2016 | % Increase/(Decrease) | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 4,496,222 | $ | 4,538,562 | (0.9 | ) | ||||||
Used vehicle retail sales | 2,089,914 | 2,106,569 | (0.8 | ) | ||||||||
Used vehicle wholesale sales | 308,361 | 302,089 | 2.1 | |||||||||
Parts and service | 994,522 | 950,341 | 4.6 | |||||||||
Finance, insurance and other, net | 314,297 | 316,419 | (0.7 | ) | ||||||||
Total revenues | 8,203,316 | 8,213,980 | (0.1 | ) | ||||||||
COST OF SALES: | ||||||||||||
New vehicle retail sales | 4,263,752 | 4,305,252 | (1.0 | ) | ||||||||
Used vehicle retail sales | 1,952,873 | 1,963,136 | (0.5 | ) | ||||||||
Used vehicle wholesale sales | 308,713 | 302,551 | 2.0 | |||||||||
Parts and service | 458,144 | 437,153 | 4.8 | |||||||||
Total cost of sales | 6,983,482 | 7,008,092 | (0.4 | ) | ||||||||
GROSS PROFIT | 1,219,834 | 1,205,888 | 1.2 | |||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 916,674 | 891,692 | 2.8 | |||||||||
DEPRECIATION AND AMORTIZATION EXPENSE | 42,758 | 38,067 | 12.3 | |||||||||
ASSET IMPAIRMENTS | 9,526 | 12,812 | (25.6 | ) | ||||||||
OPERATING INCOME | 250,876 | 263,317 | (4.7 | ) | ||||||||
OTHER EXPENSE: | ||||||||||||
Floorplan interest expense | (38,659 | ) | (33,737 | ) | 14.6 | |||||||
Other interest expense, net | (52,188 | ) | (50,729 | ) | 2.9 | |||||||
INCOME BEFORE INCOME TAXES | 160,029 | 178,851 | (10.5 | ) | ||||||||
PROVISION FOR INCOME TAXES | (57,076 | ) | (62,614 | ) | (8.8 | ) | ||||||
NET INCOME | $ | 102,953 | $ | 116,237 | (11.4 | ) | ||||||
Less: Earnings allocated to participating securities | $ | 3,659 | $ | 4,651 | (21.3 | ) | ||||||
Earnings available to diluted common shares | $ | 99,294 | $ | 111,586 | (11.0 | ) | ||||||
DILUTED EARNINGS PER SHARE | $ | 4.85 | $ | 5.22 | (7.1 | ) | ||||||
Weighted average dilutive common shares outstanding | 20,480 | 21,364 | (4.1 | ) | ||||||||
Weighted average participating securities | 767 | 895 | (14.3 | ) | ||||||||
Total weighted average shares outstanding | 21,247 | 22,259 | (4.5 | ) |
Group 1 Automotive, Inc. | ||||||||||||
Consolidated Balance Sheets | ||||||||||||
(Unaudited) | ||||||||||||
(Dollars in thousands) | ||||||||||||
September 30, 2017 | December 31, 2016 | % Increase/(Decrease) | ||||||||||
ASSETS: | ||||||||||||
CURRENT ASSETS: | ||||||||||||
Cash and cash equivalents | $ | 66,883 | $ | 20,992 | 218.6 | |||||||
Contracts in transit and vehicle receivables, net | 288,200 | 269,508 | 6.9 | |||||||||
Accounts and notes receivable, net | 187,672 | 173,364 | 8.3 | |||||||||
Inventories, net | 1,651,789 | 1,651,815 | — | |||||||||
Prepaid expenses and other current assets | 38,111 | 34,908 | 9.2 | |||||||||
Total current assets | 2,232,655 | 2,150,587 | 3.8 | |||||||||
PROPERTY AND EQUIPMENT, net | 1,269,397 | 1,125,883 | 12.7 | |||||||||
GOODWILL AND INTANGIBLE FRANCHISE RIGHTS | 1,208,344 | 1,161,639 | 4.0 | |||||||||
OTHER ASSETS | 20,598 | 23,794 | (13.4 | ) | ||||||||
Total assets | $ | 4,730,994 | $ | 4,461,903 | 6.0 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY: | ||||||||||||
CURRENT LIABILITIES: | ||||||||||||
Floorplan notes payable - credit facility and other | $ | 1,077,287 | $ | 1,136,654 | (5.2 | ) | ||||||
Offset account related to floorplan notes payable - credit facility | (46,248 | ) | (59,626 | ) | (22.4 | ) | ||||||
Floorplan notes payable - manufacturer affiliates | 399,804 | 392,661 | 1.8 | |||||||||
Offset account related to floorplan notes payable - manufacturer affiliates | (22,000 | ) | (25,500 | ) | (13.7 | ) | ||||||
Current maturities of long-term debt and short-term financing | 80,996 | 72,419 | 11.8 | |||||||||
Current liabilities from interest rate risk management activities | 823 | 3,941 | (79.1 | ) | ||||||||
Accounts payable | 436,851 | 356,099 | 22.7 | |||||||||
Accrued expenses | 208,770 | 176,469 | 18.3 | |||||||||
Total current liabilities | 2,136,283 | 2,053,117 | 4.1 | |||||||||
5.00% SENIOR NOTES (principal of $550,000 at September 30, 2017 and December 31, 2016, respectively) | 541,658 | 540,465 | 0.2 | |||||||||
5.25% SENIOR NOTES (principal of $300,000 at September 30, 2017 and December 31, 2016, respectively) | 296,009 | 295,591 | 0.1 | |||||||||
ACQUISITION LINE | 33,508 | — | 100.0 | |||||||||
REAL ESTATE RELATED AND OTHER LONG-TERM DEBT, net of current maturities | 373,466 | 333,326 | 12.0 | |||||||||
CAPITAL LEASE OBLIGATIONS RELATED TO REAL ESTATE, net of current maturities | 48,048 | 43,427 | 10.6 | |||||||||
DEFERRED INCOME TAXES | 181,244 | 161,502 | 12.2 | |||||||||
LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES | 16,157 | 20,470 | (21.1 | ) | ||||||||
OTHER LIABILITIES | 93,474 | 83,805 | 11.5 | |||||||||
STOCKHOLDERS' EQUITY: | ||||||||||||
Common stock | 255 | 257 | (0.8 | ) | ||||||||
Additional paid-in capital | 288,970 | 290,899 | (0.7 | ) | ||||||||
Retained earnings | 1,141,066 | 1,053,301 | 8.3 | |||||||||
Accumulated other comprehensive loss | (126,415 | ) | (146,944 | ) | (14.0 | ) | ||||||
Treasury stock | (292,729 | ) | (267,313 | ) | 9.5 | |||||||
Total stockholders' equity | 1,011,147 | 930,200 | 8.7 | |||||||||
Total liabilities and stockholders' equity | $ | 4,730,994 | $ | 4,461,903 | 6.0 |
Group 1 Automotive, Inc. | ||||||||||||||
Additional Information - Consolidated | ||||||||||||||
(Unaudited) | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2017 (%) | 2016 (%) | 2017 (%) | 2016 (%) | |||||||||||
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX: | ||||||||||||||
Region | Geographic Market | |||||||||||||
United States | Texas | 37.8 | 36.2 | 36.5 | 36.4 | |||||||||
California | 7.0 | 9.4 | 7.6 | 9.3 | ||||||||||
Oklahoma | 5.7 | 6.6 | 6.2 | 6.9 | ||||||||||
Massachusetts | 4.8 | 5.0 | 4.7 | 4.9 | ||||||||||
Georgia | 4.4 | 4.6 | 4.6 | 4.2 | ||||||||||
Florida | 2.4 | 2.5 | 2.5 | 2.5 | ||||||||||
New Hampshire | 1.9 | 2.0 | 2.0 | 1.9 | ||||||||||
Louisiana | 1.9 | 2.2 | 2.0 | 2.1 | ||||||||||
New Jersey | 1.7 | 1.7 | 1.7 | 1.6 | ||||||||||
Kansas | 1.5 | 1.6 | 1.6 | 1.8 | ||||||||||
South Carolina | 1.3 | 1.3 | 1.3 | 1.4 | ||||||||||
Mississippi | 1.2 | 1.5 | 1.3 | 1.5 | ||||||||||
Alabama | 0.9 | 1.0 | 1.0 | 0.9 | ||||||||||
Maryland | 0.3 | 0.5 | 0.4 | 0.5 | ||||||||||
New Mexico | 0.1 | — | — | — | ||||||||||
72.9 | 76.1 | 73.4 | 75.9 | |||||||||||
International | United Kingdom | 22.6 | 18.6 | 21.8 | 18.2 | |||||||||
Brazil | 4.5 | 5.3 | 4.8 | 5.9 | ||||||||||
100.0 | 100.0 | 100.0 | 100.0 | |||||||||||
NEW VEHICLE UNIT SALES BRAND MIX: | ||||||||||||||
Toyota/Scion/Lexus | 26.7 | 25.3 | 25.3 | 24.7 | ||||||||||
Volkswagen/Audi/Porsche | 13.9 | 11.3 | 13.0 | 10.9 | ||||||||||
BMW/MINI | 11.5 | 13.2 | 12.8 | 13.3 | ||||||||||
Ford/Lincoln | 10.6 | 10.8 | 11.5 | 11.1 | ||||||||||
Honda/Acura | 9.0 | 9.9 | 9.2 | 10.2 | ||||||||||
Nissan | 7.0 | 7.0 | 7.5 | 7.0 | ||||||||||
Chevrolet/GMC/Buick/Cadillac | 6.1 | 7.3 | 6.2 | 7.6 | ||||||||||
Hyundai/Kia | 4.2 | 4.3 | 4.0 | 4.4 | ||||||||||
Chrysler/Dodge/Jeep/RAM | 3.9 | 4.1 | 3.9 | 4.1 | ||||||||||
Mercedes-Benz/smart/Sprinter | 3.4 | 4.2 | 3.8 | 4.1 | ||||||||||
Other | 3.7 | 2.6 | 2.8 | 2.6 | ||||||||||
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, | ||||||||||||
2017 | 2016 | % Increase/(Decrease) | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 1,296,267 | $ | 1,254,421 | 3.3 | |||||||
Used vehicle retail sales | 562,031 | 575,551 | (2.3 | ) | ||||||||
Used vehicle wholesale sales | 63,363 | 74,821 | (15.3 | ) | ||||||||
Total used | 625,394 | 650,372 | (3.8 | ) | ||||||||
Parts and service | 283,915 | 271,635 | 4.5 | |||||||||
Finance, insurance and other, net | 96,383 | 98,295 | (1.9 | ) | ||||||||
Total | $ | 2,301,959 | $ | 2,274,723 | 1.2 | |||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 5.1 | 4.9 | ||||||||||
Used vehicle retail sales | 6.8 | 6.8 | ||||||||||
Used vehicle wholesale sales | (0.1 | ) | (2.0 | ) | ||||||||
Total used | 6.1 | 5.8 | ||||||||||
Parts and service | 53.8 | 54.8 | ||||||||||
Finance, insurance and other, net | 100.0 | 100.0 | ||||||||||
Total | 15.4 | 15.2 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 66,622 | $ | 61,886 | 7.7 | |||||||
Used vehicle retail sales | 37,962 | 39,193 | (3.1 | ) | ||||||||
Used vehicle wholesale sales | (54 | ) | (1,514 | ) | 96.4 | |||||||
Total used | 37,908 | 37,679 | 0.6 | |||||||||
Parts and service | 152,654 | 148,866 | 2.5 | |||||||||
Finance, insurance and other, net | 96,383 | 98,295 | (1.9 | ) | ||||||||
Total | $ | 353,567 | $ | 346,726 | 2.0 | |||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 35,233 | 34,700 | 1.5 | |||||||||
Retail used vehicles sold | 26,304 | 27,201 | (3.3 | ) | ||||||||
Wholesale used vehicles sold | 9,786 | 11,005 | (11.1 | ) | ||||||||
Total used | 36,090 | 38,206 | (5.5 | ) | ||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 36,791 | $ | 36,150 | 1.8 | |||||||
Used vehicle retail | $ | 21,367 | $ | 21,159 | 1.0 | |||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 1,891 | $ | 1,783 | 6.1 | |||||||
Used vehicle retail sales | 1,443 | 1,441 | 0.1 | |||||||||
Used vehicle wholesale sales | (6 | ) | (138 | ) | 95.7 | |||||||
Total used | 1,050 | 986 | 6.5 | |||||||||
Finance, insurance and other, net (per retail unit) | $ | 1,566 | $ | 1,588 | (1.4 | ) | ||||||
OTHER: | ||||||||||||
Adjusted Finance, insurance and other revenue, net (1) (2) | $ | 102,933 | $ | 98,295 | 4.7 | |||||||
Adjusted Total revenue (1) | $ | 2,308,509 | $ | 2,274,723 | 1.5 | |||||||
Adjusted Total gross profit (1) | $ | 360,117 | $ | 346,726 | 3.9 | |||||||
Adjusted Total gross margin (1) | 15.6 | 15.2 | ||||||||||
Adjusted Finance, insurance and other, net (per retail unit) (1) | $ | 1,673 | $ | 1,588 | 5.4 | |||||||
SG&A expenses | $ | 261,787 | $ | 246,501 | 6.2 | |||||||
Adjusted SG&A expenses (1) | $ | 252,120 | $ | 247,227 | 2.0 | |||||||
SG&A as % revenues | 11.4 | 10.8 | ||||||||||
Adjusted SG&A as % revenues (1) | 11.0 | 10.9 | ||||||||||
SG&A as % gross profit | 74.0 | 71.1 | ||||||||||
Adjusted SG&A as % gross profit (1) | 70.0 | 71.3 | ||||||||||
Operating margin % | 3.0 | 3.4 | ||||||||||
Adjusted operating margin % (1) | 4.1 | 3.9 | ||||||||||
Pretax margin % | 1.8 | 2.3 | ||||||||||
Adjusted pretax margin % (1) | 2.9 | 2.8 | ||||||||||
INTEREST EXPENSE: | ||||||||||||
Floorplan interest expense | $ | (12,014 | ) | $ | (9,979 | ) | 20.4 | |||||
Floorplan assistance | 13,295 | 12,824 | 3.7 | |||||||||
Net floorplan income | $ | 1,281 | $ | 2,845 | (55.0 | ) | ||||||
Other interest expense, net | $ | (16,727 | ) | $ | (15,710 | ) | 6.5 |
Nine Months Ended September 30, | ||||||||||||
2017 | 2016 | % Increase/(Decrease) | ||||||||||
REVENUES: | ||||||||||||
New vehicle retail sales | $ | 3,458,287 | $ | 3,558,127 | (2.8 | ) | ||||||
Used vehicle retail sales | 1,620,171 | 1,709,595 | (5.2 | ) | ||||||||
Used vehicle wholesale sales | 200,384 | 205,755 | (2.6 | ) | ||||||||
Total used | 1,820,555 | 1,915,350 | (4.9 | ) | ||||||||
Parts and service | 837,772 | 805,618 | 4.0 | |||||||||
Finance, insurance and other, net | 276,754 | 284,644 | (2.8 | ) | ||||||||
Total | $ | 6,393,368 | $ | 6,563,739 | (2.6 | ) | ||||||
GROSS MARGIN %: | ||||||||||||
New vehicle retail sales | 5.1 | 5.0 | ||||||||||
Used vehicle retail sales | 6.9 | 7.2 | ||||||||||
Used vehicle wholesale sales | (0.1 | ) | (0.3 | ) | ||||||||
Total used | 6.2 | 6.4 | ||||||||||
Parts and service | 53.8 | 54.6 | ||||||||||
Finance, insurance and other, net | 100.0 | 100.0 | ||||||||||
Total | 15.9 | 15.6 | ||||||||||
GROSS PROFIT: | ||||||||||||
New vehicle retail sales | $ | 174,831 | $ | 177,674 | (1.6 | ) | ||||||
Used vehicle retail sales | 112,598 | 122,832 | (8.3 | ) | ||||||||
Used vehicle wholesale sales | (170 | ) | (643 | ) | 73.6 | |||||||
Total used | 112,428 | 122,189 | (8.0 | ) | ||||||||
Parts and service | 450,623 | 439,526 | 2.5 | |||||||||
Finance, insurance and other, net | 276,754 | 284,644 | (2.8 | ) | ||||||||
Total | $ | 1,014,636 | $ | 1,024,033 | (0.9 | ) | ||||||
UNITS SOLD: | ||||||||||||
Retail new vehicles sold | 93,533 | 98,692 | (5.2 | ) | ||||||||
Retail used vehicles sold | 76,435 | 80,888 | (5.5 | ) | ||||||||
Wholesale used vehicles sold | 29,468 | 30,894 | (4.6 | ) | ||||||||
Total used | 105,903 | 111,782 | (5.3 | ) | ||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||
New vehicle retail | $ | 36,974 | $ | 36,053 | 2.6 | |||||||
Used vehicle retail | $ | 21,197 | $ | 21,135 | 0.3 | |||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||
New vehicle retail sales | $ | 1,869 | $ | 1,800 | 3.8 | |||||||
Used vehicle retail sales | 1,473 | 1,519 | (3.0 | ) | ||||||||
Used vehicle wholesale sales | (6 | ) | (21 | ) | 71.4 | |||||||
Total used | 1,062 | 1,093 | (2.8 | ) | ||||||||
Finance, insurance and other, net (per retail unit) | $ | 1,628 | $ | 1,585 | 2.7 | |||||||
OTHER: | ||||||||||||
Adjusted Finance, insurance and other revenue, net (1) (2) | $ | 283,304 | $ | 284,644 | (0.5 | ) | ||||||
Adjusted Total revenue (1) | $ | 6,399,918 | $ | 6,563,739 | (2.6 | ) | ||||||
Adjusted Total gross profit (1) | $ | 1,021,186 | $ | 1,024,033 | (0.3 | ) | ||||||
Adjusted Total gross margin (1) | 16.0 | 15.6 | ||||||||||
Adjusted Finance, insurance and other, net (per retail unit) (1) | $ | 1,667 | $ | 1,585 | 5.2 | |||||||
SG&A expenses | $ | 741,904 | $ | 737,730 | 0.6 | |||||||
Adjusted SG&A expenses (1) | $ | 733,427 | $ | 733,683 | — | |||||||
SG&A as % revenues | 11.6 | 11.2 | ||||||||||
Adjusted SG&A as % revenues (1) | 11.5 | 11.2 | ||||||||||
SG&A as % gross profit | 73.1 | 72.0 | ||||||||||
Adjusted SG&A as % gross profit (1) | 71.8 | 71.6 | ||||||||||
Operating margin % | 3.6 | 3.7 | ||||||||||
Adjusted operating margin % (1) | 3.9 | 3.9 | ||||||||||
Pretax margin % | 2.2 | 2.5 | ||||||||||
Adjusted pretax margin % (1) | 2.6 | 2.8 | ||||||||||
INTEREST EXPENSE: | ||||||||||||
Floorplan interest expense | $ | (34,954 | ) | $ | (30,428 | ) | 14.9 | |||||
Floorplan assistance | 35,031 | 36,176 | (3.2 | ) | ||||||||
Net floorplan income | $ | 77 | $ | 5,748 | (98.7 | ) | ||||||
Other interest expense, net | $ | (49,571 | ) | $ | (46,581 | ) | 6.4 |
Group 1 Automotive, Inc. | ||||||||||||||
Additional Information - U.K. | ||||||||||||||
(Unaudited) | ||||||||||||||
(Dollars in thousands, except per unit amounts) | ||||||||||||||
Three Months Ended September 30, | ||||||||||||||
2017 | 2016 | % Increase/(Decrease) | Constant Currency (1) % Increase/(Decrease) | |||||||||||
REVENUES: | ||||||||||||||
New vehicle retail sales | $ | 334,772 | $ | 256,143 | 30.7 | 30.3 | ||||||||
Used vehicle retail sales | 158,076 | 106,856 | 47.9 | 48.3 | ||||||||||
Used vehicle wholesale sales | 38,647 | 28,586 | 35.2 | 35.5 | ||||||||||
Total used | 196,723 | 135,442 | 45.2 | 45.6 | ||||||||||
Parts and service | 46,783 | 35,682 | 31.1 | 31.5 | ||||||||||
Finance, insurance and other, net | 12,448 | 8,708 | 42.9 | 42.8 | ||||||||||
Total | $ | 590,726 | $ | 435,975 | 35.5 | 35.4 | ||||||||
GROSS MARGIN %: | ||||||||||||||
New vehicle retail sales | 5.1 | 5.5 | ||||||||||||
Used vehicle retail sales | 4.7 | 4.9 | ||||||||||||
Used vehicle wholesale sales | (0.9 | ) | (1.4 | ) | ||||||||||
Total used | 3.6 | 3.6 | ||||||||||||
Parts and service | 57.3 | 55.7 | ||||||||||||
Finance, insurance and other, net | 100.0 | 100.0 | ||||||||||||
Total | 10.8 | 10.9 | ||||||||||||
GROSS PROFIT: | ||||||||||||||
New vehicle retail sales | $ | 17,205 | $ | 14,031 | 22.6 | 21.9 | ||||||||
Used vehicle retail sales | 7,471 | 5,265 | 41.9 | 42.3 | ||||||||||
Used vehicle wholesale sales | (347 | ) | (404 | ) | 14.1 | 11.7 | ||||||||
Total used | 7,124 | 4,861 | 46.6 | 46.8 | ||||||||||
Parts and service | 26,823 | 19,892 | 34.8 | 35.2 | ||||||||||
Finance, insurance and other, net | 12,448 | 8,708 | 42.9 | 42.8 | ||||||||||
Total | $ | 63,600 | $ | 47,492 | 33.9 | 33.8 | ||||||||
UNITS SOLD: | ||||||||||||||
Retail new vehicles sold | 10,909 | 8,468 | 28.8 | |||||||||||
Retail used vehicles sold | 7,011 | 4,800 | 46.1 | |||||||||||
Wholesale used vehicles sold | 4,939 | 3,689 | 33.9 | |||||||||||
Total used | 11,950 | 8,489 | 40.8 | |||||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||||
New vehicle retail | $ | 30,688 | $ | 30,248 | 1.5 | 1.2 | ||||||||
Used vehicle retail | $ | 22,547 | $ | 22,262 | 1.3 | 1.5 | ||||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||||
New vehicle retail sales | $ | 1,577 | $ | 1,657 | (4.8 | ) | (5.4 | ) | ||||||
Used vehicle retail sales | 1,066 | 1,097 | (2.8 | ) | (2.6 | ) | ||||||||
Used vehicle wholesale sales | (70 | ) | (110 | ) | 36.4 | 34.1 | ||||||||
Total used | 596 | 573 | 4.0 | 4.3 | ||||||||||
Finance, insurance and other, net (per retail unit) | $ | 695 | $ | 656 | 5.9 | 5.7 | ||||||||
OTHER: | ||||||||||||||
SG&A expenses | $ | 53,395 | $ | 39,609 | 34.8 | 35.2 | ||||||||
SG&A as % revenues | 9.0 | 9.1 | ||||||||||||
SG&A as % gross profit | 84.0 | 83.4 | ||||||||||||
Operating margin % | 1.3 | 1.4 | ||||||||||||
Pretax margin % | 0.9 | 0.9 | ||||||||||||
INTEREST EXPENSE: | ||||||||||||||
Floorplan interest expense | $ | (1,336 | ) | $ | (1,083 | ) | 23.4 | 23.5 | ||||||
Floorplan assistance | 265 | 154 | 72.1 | 72.3 | ||||||||||
Net floorplan expense | $ | (1,071 | ) | $ | (929 | ) | 15.3 | 15.4 | ||||||
Other interest expense, net | $ | (1,121 | ) | $ | (1,299 | ) | (13.7 | ) | (13.6 | ) |
Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | % Increase/(Decrease) | Constant Currency (1) % Increase/(Decrease) | |||||||||||
REVENUES: | ||||||||||||||
New vehicle retail sales | $ | 824,827 | $ | 764,707 | 7.9 | 17.1 | ||||||||
Used vehicle retail sales | 401,851 | 339,800 | 18.3 | 28.8 | ||||||||||
Used vehicle wholesale sales | 99,604 | 93,985 | 6.0 | 15.6 | ||||||||||
Total used | 501,455 | 433,785 | 15.6 | 26.0 | ||||||||||
Parts and service | 120,614 | 110,180 | 9.5 | 19.2 | ||||||||||
Finance, insurance and other, net | 31,260 | 26,991 | 15.8 | 25.8 | ||||||||||
Total | $ | 1,478,156 | $ | 1,335,663 | 10.7 | 20.3 | ||||||||
GROSS MARGIN %: | ||||||||||||||
New vehicle retail sales | 5.5 | 5.7 | ||||||||||||
Used vehicle retail sales | 4.9 | 5.1 | ||||||||||||
Used vehicle wholesale sales | (0.9 | ) | 0.1 | |||||||||||
Total used | 3.7 | 4.0 | ||||||||||||
Parts and service | 57.6 | 55.2 | ||||||||||||
Finance, insurance and other, net | 100.0 | 100.0 | ||||||||||||
Total | 11.2 | 11.1 | ||||||||||||
GROSS PROFIT: | ||||||||||||||
New vehicle retail sales | $ | 45,350 | $ | 43,347 | 4.6 | 13.6 | ||||||||
Used vehicle retail sales | 19,579 | 17,329 | 13.0 | 23.3 | ||||||||||
Used vehicle wholesale sales | (851 | ) | 54 | (1,675.9 | ) | (5,004.1 | ) | |||||||
Total used | 18,728 | 17,383 | 7.7 | 7.6 | ||||||||||
Parts and service | 69,488 | 60,845 | 14.2 | 24.3 | ||||||||||
Finance, insurance and other, net | 31,260 | 26,991 | 15.8 | 25.8 | ||||||||||
Total | $ | 164,826 | $ | 148,566 | 10.9 | 20.7 | ||||||||
UNITS SOLD: | ||||||||||||||
Retail new vehicles sold | 27,821 | 23,694 | 17.4 | |||||||||||
Retail used vehicles sold | 18,435 | 14,401 | 28.0 | |||||||||||
Wholesale used vehicles sold | 13,245 | 11,328 | 16.9 | |||||||||||
Total used | 31,680 | 25,729 | 23.1 | |||||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||||
New vehicle retail | $ | 29,648 | $ | 32,274 | (8.1 | ) | (0.3 | ) | ||||||
Used vehicle retail | $ | 21,798 | $ | 23,596 | (7.6 | ) | 0.6 | |||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||||
New vehicle retail sales | $ | 1,630 | $ | 1,829 | (10.9 | ) | (3.3 | ) | ||||||
Used vehicle retail sales | 1,062 | 1,203 | (11.7 | ) | (3.7 | ) | ||||||||
Used vehicle wholesale sales | (64 | ) | 5 | (1,380.0 | ) | (4,294.3 | ) | |||||||
Total used | 591 | 676 | (12.6 | ) | (12.6 | ) | ||||||||
Finance, insurance and other, net (per retail unit) | $ | 676 | $ | 709 | (4.7 | ) | 3.6 | |||||||
OTHER: | ||||||||||||||
SG&A expenses | $ | 137,475 | $ | 119,154 | 15.4 | 25.5 | ||||||||
Adjusted SG&A expenses (1) | $ | 137,187 | $ | 118,593 | 15.7 | 25.9 | ||||||||
SG&A as % revenues | 9.3 | 8.9 | ||||||||||||
Adjusted SG&A as % revenues (1) | 9.3 | 8.9 | ||||||||||||
SG&A as % gross profit | 83.4 | 80.2 | ||||||||||||
Adjusted SG&A as % gross profit (1) | 83.2 | 79.8 | ||||||||||||
Operating margin % | 1.5 | 1.8 | ||||||||||||
Adjusted operating margin % (1) | 1.5 | 1.9 | ||||||||||||
Pretax margin % | 1.1 | 1.3 | ||||||||||||
Adjusted pretax margin % (1) | 1.1 | 1.3 | ||||||||||||
INTEREST EXPENSE: | ||||||||||||||
Floorplan interest expense | $ | (3,423 | ) | $ | (3,137 | ) | 9.1 | 18.5 | ||||||
Floorplan assistance | 714 | 643 | 11.0 | 22.1 | ||||||||||
Net floorplan expense | $ | (2,709 | ) | $ | (2,494 | ) | 8.6 | 17.6 | ||||||
Other interest expense, net | $ | (2,386 | ) | $ | (3,966 | ) | (39.8 | ) | (34.7 | ) |
Group 1 Automotive, Inc. | |||||||||||||||
Additional Information - Brazil | |||||||||||||||
(Unaudited) | |||||||||||||||
(Dollars in thousands, except per unit amounts) | |||||||||||||||
Three Months Ended September 30, | |||||||||||||||
2017 | 2016 | % Increase/(Decrease) | Constant Currency (1) % Increase/(Decrease) | ||||||||||||
REVENUES: | |||||||||||||||
New vehicle retail sales | $ | 79,202 | $ | 77,388 | 2.3 | (0.2 | ) | ||||||||
Used vehicle retail sales | 22,931 | 20,213 | 13.4 | 10.6 | |||||||||||
Used vehicle wholesale sales | 2,817 | 811 | 247.3 | 239.0 | |||||||||||
Total used | 25,748 | 21,024 | 22.5 | 19.4 | |||||||||||
Parts and service | 12,495 | 12,359 | 1.1 | (1.4 | ) | ||||||||||
Finance, insurance and other, net | 2,162 | 1,707 | 26.7 | 23.5 | |||||||||||
Total | $ | 119,607 | $ | 112,478 | 6.3 | 3.7 | |||||||||
GROSS MARGIN %: | |||||||||||||||
New vehicle retail sales | 5.7 | 5.8 | |||||||||||||
Used vehicle retail sales | 7.4 | 7.5 | |||||||||||||
Used vehicle wholesale sales | 7.7 | 7.3 | |||||||||||||
Total used | 7.4 | 7.5 | |||||||||||||
Parts and service | 45.5 | 37.7 | |||||||||||||
Finance, insurance and other, net | 100.0 | 100.0 | |||||||||||||
Total | 11.9 | 11.1 | |||||||||||||
GROSS PROFIT: | |||||||||||||||
New vehicle retail sales | $ | 4,505 | $ | 4,518 | (0.3 | ) | (2.7 | ) | |||||||
Used vehicle retail sales | 1,690 | 1,510 | 11.9 | 9.2 | |||||||||||
Used vehicle wholesale sales | 216 | 59 | 266.1 | 258.5 | |||||||||||
Total used | 1,906 | 1,569 | 21.5 | 18.6 | |||||||||||
Parts and service | 5,680 | 4,656 | 22.0 | 19.0 | |||||||||||
Finance, insurance and other, net | 2,162 | 1,707 | 26.7 | 23.5 | |||||||||||
Total | $ | 14,253 | $ | 12,450 | 14.5 | 11.7 | |||||||||
UNITS SOLD: | |||||||||||||||
Retail new vehicles sold | 2,179 | 2,429 | (10.3 | ) | |||||||||||
Retail used vehicles sold | 1,034 | 1,011 | 2.3 | ||||||||||||
Wholesale used vehicles sold | 242 | 333 | (27.3 | ) | |||||||||||
Total used | 1,276 | 1,344 | (5.1 | ) | |||||||||||
AVERAGE RETAIL SALES PRICE: | |||||||||||||||
New vehicle retail | $ | 36,348 | $ | 31,860 | 14.1 | 11.3 | |||||||||
Used vehicle retail | $ | 22,177 | $ | 19,993 | 10.9 | 8.2 | |||||||||
GROSS PROFIT PER UNIT SOLD: | |||||||||||||||
New vehicle retail sales | $ | 2,067 | $ | 1,860 | 11.1 | 8.5 | |||||||||
Used vehicle retail sales | 1,634 | 1,494 | 9.4 | 6.8 | |||||||||||
Used vehicle wholesale sales | 893 | 177 | 404.5 | 393.3 | |||||||||||
Total used | 1,494 | 1,167 | 28.0 | 24.9 | |||||||||||
Finance, insurance and other, net (per retail unit) | $ | 673 | $ | 496 | 35.7 | 32.2 | |||||||||
OTHER: | |||||||||||||||
SG&A expenses | $ | 13,145 | $ | 12,896 | 1.9 | (0.6 | ) | ||||||||
Adjusted SG&A expenses (1) | $ | 13,145 | $ | 12,622 | 4.1 | 1.6 | |||||||||
SG&A as % revenues | 11.0 | 11.5 | |||||||||||||
Adjusted SG&A as % revenues (1) | 11.0 | 11.2 | |||||||||||||
SG&A as % gross profit | 92.2 | 103.6 | |||||||||||||
Adjusted SG&A as % gross profit (1) | 92.2 | 101.4 | |||||||||||||
Operating margin % | 0.6 | (0.6 | ) | ||||||||||||
Adjusted operating margin % (1) | 0.6 | (0.4 | ) | ||||||||||||
Pretax margin % | 0.5 | (0.8 | ) | ||||||||||||
Adjusted pretax margin % (1) | 0.5 | (0.5 | ) | ||||||||||||
INTEREST EXPENSE: | |||||||||||||||
Floorplan interest expense | $ | (141 | ) | $ | (73 | ) | 93.2 | 90.9 | |||||||
Floorplan assistance | — | — | — | — | |||||||||||
Net floorplan expense | $ | (141 | ) | $ | (73 | ) | 93.2 | 90.9 | |||||||
Other interest expense, net | $ | (26 | ) | $ | (85 | ) | (69.4 | ) | (68.7 | ) |
Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | % Increase/(Decrease) | Constant Currency (1) % Increase/(Decrease) | |||||||||||
REVENUES: | ||||||||||||||
New vehicle retail sales | $ | 213,108 | $ | 215,728 | (1.2 | ) | (11.0 | ) | ||||||
Used vehicle retail sales | 67,892 | 57,174 | 18.7 | 6.3 | ||||||||||
Used vehicle wholesale sales | 8,373 | 2,349 | 256.4 | 220.7 | ||||||||||
Total used | 76,265 | 59,523 | 28.1 | 14.8 | ||||||||||
Parts and service | 36,136 | 34,543 | 4.6 | (5.9 | ) | |||||||||
Finance, insurance and other, net | 6,283 | 4,784 | 31.3 | 18.3 | ||||||||||
Total | $ | 331,792 | $ | 314,578 | 5.5 | (5.1 | ) | |||||||
GROSS MARGIN %: | ||||||||||||||
New vehicle retail sales | 5.8 | 5.7 | ||||||||||||
Used vehicle retail sales | 7.2 | 5.7 | ||||||||||||
Used vehicle wholesale sales | 8.0 | 5.4 | ||||||||||||
Total used | 7.3 | 5.7 | ||||||||||||
Parts and service | 45.0 | 37.1 | ||||||||||||
Finance, insurance and other, net | 100.0 | 100.0 | ||||||||||||
Total | 12.2 | 10.6 | ||||||||||||
GROSS PROFIT: | ||||||||||||||
New vehicle retail sales | $ | 12,289 | $ | 12,289 | — | (10.0 | ) | |||||||
Used vehicle retail sales | 4,864 | 3,272 | 48.7 | 36.8 | ||||||||||
Used vehicle wholesale sales | 669 | 127 | 426.8 | 378.4 | ||||||||||
Total used | 5,533 | 3,399 | 62.8 | 49.6 | ||||||||||
Parts and service | 16,267 | 12,817 | 26.9 | 14.0 | ||||||||||
Finance, insurance and other, net | 6,283 | 4,784 | 31.3 | 18.3 | ||||||||||
Total | $ | 40,372 | $ | 33,289 | 21.3 | 9.3 | ||||||||
UNITS SOLD: | ||||||||||||||
Retail new vehicles sold | 6,133 | 7,636 | (19.7 | ) | ||||||||||
Retail used vehicles sold | 3,048 | 3,465 | (12.0 | ) | ||||||||||
Wholesale used vehicles sold | 858 | 855 | 0.4 | |||||||||||
Total used | 3,906 | 4,320 | (9.6 | ) | ||||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||||
New vehicle retail | $ | 34,748 | $ | 28,251 | 23.0 | 10.9 | ||||||||
Used vehicle retail | $ | 22,274 | $ | 16,500 | 35.0 | 20.8 | ||||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||||
New vehicle retail sales | $ | 2,004 | $ | 1,609 | 24.5 | 12.0 | ||||||||
Used vehicle retail sales | 1,596 | 944 | 69.1 | 55.5 | ||||||||||
Used vehicle wholesale sales | 780 | 149 | 423.5 | 376.7 | ||||||||||
Total used | 1,417 | 787 | 80.1 | 65.4 | ||||||||||
Finance, insurance and other, net (per retail unit) | $ | 684 | $ | 431 | 58.7 | 43.1 | ||||||||
OTHER: | ||||||||||||||
SG&A expenses | $ | 37,295 | $ | 34,808 | 7.1 | (3.6 | ) | |||||||
Adjusted SG&A expenses (1) | $ | 37,295 | $ | 34,162 | 9.2 | (1.7 | ) | |||||||
SG&A as % revenues | 11.2 | 11.1 | ||||||||||||
Adjusted SG&A as % revenues (1) | 11.2 | 10.9 | ||||||||||||
SG&A as % gross profit | 92.4 | 104.6 | ||||||||||||
Adjusted SG&A as % gross profit (1) | 92.4 | 102.6 | ||||||||||||
Operating margin % | 0.6 | (0.9 | ) | |||||||||||
Adjusted operating margin % (1) | 0.6 | (0.5 | ) | |||||||||||
Pretax margin % | 0.4 | (1.0 | ) | |||||||||||
Adjusted pretax margin % (1) | 0.4 | (0.7 | ) | |||||||||||
INTEREST EXPENSE: | ||||||||||||||
Floorplan interest expense | $ | (282 | ) | $ | (172 | ) | 64.0 | 50.0 | ||||||
Floorplan assistance | — | — | — | — | ||||||||||
Net floorplan expense | $ | (282 | ) | $ | (172 | ) | 64.0 | 50.0 | ||||||
Other interest expense, net | $ | (231 | ) | $ | (182 | ) | 26.9 | 8.7 |
Group 1 Automotive, Inc. | ||||||||||||||
Additional Information - Consolidated | ||||||||||||||
(Unaudited) | ||||||||||||||
(Dollars in thousands, except per unit amounts) | ||||||||||||||
Three Months Ended September 30, | ||||||||||||||
2017 | 2016 | % Increase/(Decrease) | Constant Currency (1) % Increase/(Decrease) | |||||||||||
REVENUES: | ||||||||||||||
New vehicle retail sales | $ | 1,710,241 | $ | 1,587,952 | 7.7 | 7.5 | ||||||||
Used vehicle retail sales | 743,038 | 702,620 | 5.8 | 5.7 | ||||||||||
Used vehicle wholesale sales | 104,827 | 104,218 | 0.6 | 0.6 | ||||||||||
Total used | 847,865 | 806,838 | 5.1 | 5.1 | ||||||||||
Parts and service | 343,193 | 319,676 | 7.4 | 7.3 | ||||||||||
Finance, insurance and other, net | 110,993 | 108,710 | 2.1 | 2.0 | ||||||||||
Total | $ | 3,012,292 | $ | 2,823,176 | 6.7 | 6.6 | ||||||||
GROSS MARGIN %: | ||||||||||||||
New vehicle retail sales | 5.2 | 5.1 | ||||||||||||
Used vehicle retail sales | 6.3 | 6.5 | ||||||||||||
Used vehicle wholesale sales | (0.2 | ) | (1.8 | ) | ||||||||||
Total used | 5.5 | 5.5 | ||||||||||||
Parts and service | 54.0 | 54.2 | ||||||||||||
Finance, insurance and other, net | 100.0 | 100.0 | ||||||||||||
Total | 14.3 | 14.4 | ||||||||||||
GROSS PROFIT: | ||||||||||||||
New vehicle retail sales | $ | 88,332 | $ | 80,435 | 9.8 | 9.6 | ||||||||
Used vehicle retail sales | 47,123 | 45,968 | 2.5 | 2.5 | ||||||||||
Used vehicle wholesale sales | (185 | ) | (1,859 | ) | 90.0 | 89.3 | ||||||||
Total used | 46,938 | 44,109 | 6.4 | 6.3 | ||||||||||
Parts and service | 185,157 | 173,414 | 6.8 | 6.7 | ||||||||||
Finance, insurance and other, net | 110,993 | 108,710 | 2.1 | 2.0 | ||||||||||
Total | $ | 431,420 | $ | 406,668 | 6.1 | 6.0 | ||||||||
UNITS SOLD: | ||||||||||||||
Retail new vehicles sold | 48,321 | 45,597 | 6.0 | |||||||||||
Retail used vehicles sold | 34,349 | 33,012 | 4.1 | |||||||||||
Wholesale used vehicles sold | 14,967 | 15,027 | (0.4 | ) | ||||||||||
Total used | 49,316 | 48,039 | 2.7 | |||||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||||
New vehicle retail | $ | 35,393 | $ | 34,826 | 1.6 | 1.5 | ||||||||
Used vehicle retail | $ | 21,632 | $ | 21,284 | 1.6 | 1.6 | ||||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||||
New vehicle retail sales | $ | 1,828 | $ | 1,764 | 3.6 | 3.4 | ||||||||
Used vehicle retail sales | 1,372 | 1,392 | (1.4 | ) | (1.5 | ) | ||||||||
Used vehicle wholesale sales | (12 | ) | (124 | ) | 90.3 | 89.2 | ||||||||
Total used | 952 | 918 | 3.7 | 3.6 | ||||||||||
Finance, insurance and other, net (per retail unit) | $ | 1,343 | $ | 1,383 | (2.9 | ) | (3.0 | ) | ||||||
OTHER: | ||||||||||||||
Adjusted Finance, insurance and other revenue, net (1) (2) | $ | 117,543 | $ | 108,710 | 8.1 | 8.1 | ||||||||
Adjusted Total revenue (1) | $ | 3,018,842 | $ | 2,823,176 | 6.9 | 6.8 | ||||||||
Adjusted Total gross profit (1) | $ | 437,970 | $ | 406,668 | 7.7 | 7.6 | ||||||||
Adjusted Total gross margin (1) | 14.5 | 14.4 | ||||||||||||
Adjusted Finance, insurance and other, net (per retail unit) (1) | $ | 1,422 | $ | 1,383 | 2.8 | 2.8 | ||||||||
SG&A expenses | $ | 328,327 | $ | 299,006 | 9.8 | 9.7 | ||||||||
Adjusted SG&A expenses (1) | $ | 318,660 | $ | 299,458 | 6.4 | 6.4 | ||||||||
SG&A as % revenues | 10.9 | 10.6 | ||||||||||||
Adjusted SG&A as % revenues (1) | 10.6 | 10.6 | ||||||||||||
SG&A as % gross profit | 76.1 | 73.5 | ||||||||||||
Adjusted SG&A as % gross profit (1) | 72.8 | 73.6 | ||||||||||||
Operating margin % | 2.6 | 3.0 | ||||||||||||
Adjusted operating margin % (1) | 3.5 | 3.3 | ||||||||||||
Pretax margin % | 1.6 | 2.0 | ||||||||||||
Adjusted pretax margin % (1) | 2.4 | 2.3 | ||||||||||||
INTEREST EXPENSE: | ||||||||||||||
Floorplan interest expense | $ | (13,491 | ) | $ | (11,135 | ) | 21.2 | 21.2 | ||||||
Floorplan assistance | 13,561 | 12,979 | 4.5 | 4.5 | ||||||||||
Net floorplan (expense) income | $ | 70 | $ | 1,844 | (96.2 | ) | (96.1 | ) | ||||||
Other interest expense, net | $ | (17,874 | ) | $ | (17,094 | ) | 4.6 | 4.6 |
Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | % Increase/(Decrease) | Constant Currency (1) % Increase/(Decrease) | |||||||||||
REVENUES: | ||||||||||||||
New vehicle retail sales | $ | 4,496,222 | $ | 4,538,562 | (0.9 | ) | 0.2 | |||||||
Used vehicle retail sales | 2,089,914 | 2,106,569 | (0.8 | ) | 0.6 | |||||||||
Used vehicle wholesale sales | 308,361 | 302,089 | 2.1 | 4.8 | ||||||||||
Total used | 2,398,275 | 2,408,658 | (0.4 | ) | 1.1 | |||||||||
Parts and service | 994,522 | 950,341 | 4.6 | 5.4 | ||||||||||
Finance, insurance and other, net | 314,297 | 316,419 | (0.7 | ) | — | |||||||||
Total | $ | 8,203,316 | $ | 8,213,980 | (0.1 | ) | 1.0 | |||||||
GROSS MARGIN %: | ||||||||||||||
New vehicle retail sales | 5.2 | 5.1 | ||||||||||||
Used vehicle retail sales | 6.6 | 6.8 | ||||||||||||
Used vehicle wholesale sales | (0.1 | ) | (0.2 | ) | ||||||||||
Total used | 5.7 | 5.9 | ||||||||||||
Parts and service | 53.9 | 54.0 | ||||||||||||
Finance, insurance and other, net | 100.0 | 100.0 | ||||||||||||
Total | 14.9 | 14.7 | ||||||||||||
GROSS PROFIT: | ||||||||||||||
New vehicle retail sales | $ | 232,470 | $ | 233,310 | (0.4 | ) | 0.8 | |||||||
Used vehicle retail sales | 137,041 | 143,433 | (4.5 | ) | (3.5 | ) | ||||||||
Used vehicle wholesale sales | (352 | ) | (462 | ) | 23.8 | (381.7 | ) | |||||||
Total used | 136,689 | 142,971 | (4.4 | ) | (4.7 | ) | ||||||||
Parts and service | 536,378 | 513,188 | 4.5 | 5.4 | ||||||||||
Finance, insurance and other, net | 314,297 | 316,419 | (0.7 | ) | — | |||||||||
Total | $ | 1,219,834 | $ | 1,205,888 | 1.2 | 2.0 | ||||||||
UNITS SOLD: | ||||||||||||||
Retail new vehicles sold | 127,487 | 130,022 | (1.9 | ) | ||||||||||
Retail used vehicles sold | 97,918 | 98,754 | (0.8 | ) | ||||||||||
Wholesale used vehicles sold | 43,571 | 43,077 | 1.1 | |||||||||||
Total used | 141,489 | 141,831 | (0.2 | ) | ||||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||||
New vehicle retail | $ | 35,268 | $ | 34,906 | 1.0 | 2.1 | ||||||||
Used vehicle retail | $ | 21,344 | $ | 21,331 | 0.1 | 1.4 | ||||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||||
New vehicle retail sales | $ | 1,823 | $ | 1,794 | 1.6 | 2.8 | ||||||||
Used vehicle retail sales | 1,400 | 1,452 | (3.6 | ) | (2.7 | ) | ||||||||
Used vehicle wholesale sales | (8 | ) | (11 | ) | 27.3 | (376.2 | ) | |||||||
Total used | 966 | 1,008 | (4.2 | ) | (4.5 | ) | ||||||||
Finance, insurance and other, net (per retail unit) | $ | 1,394 | $ | 1,383 | 0.8 | 1.5 | ||||||||
OTHER: | ||||||||||||||
Adjusted Finance, insurance and other revenue, net (1) (2) | $ | 320,847 | $ | 316,419 | 1.4 | 2.1 | ||||||||
Adjusted Total revenue (1) | $ | 8,209,866 | $ | 8,213,980 | (0.1 | ) | 1.1 | |||||||
Adjusted Total gross profit (1) | $ | 1,226,384 | $ | 1,205,888 | 1.7 | 2.4 | ||||||||
Adjusted Total gross margin (1) | 14.9 | 14.7 | ||||||||||||
Adjusted Finance, insurance and other, net (per retail unit) (1) | $ | 1,423 | $ | 1,383 | 2.9 | 3.6 | ||||||||
SG&A expenses | $ | 916,674 | $ | 891,692 | 2.8 | 3.7 | ||||||||
Adjusted SG&A expenses (1) | $ | 907,909 | $ | 886,439 | 2.4 | 3.4 | ||||||||
SG&A as % revenues | 11.2 | 10.9 | ||||||||||||
Adjusted SG&A as % revenues (1) | 11.1 | 10.8 | ||||||||||||
SG&A as % gross profit | 75.1 | 73.9 | ||||||||||||
Adjusted SG&A as % gross profit (1) | 74.0 | 73.5 | ||||||||||||
Operating margin % | 3.1 | 3.2 | ||||||||||||
Adjusted operating margin % (1) | 3.4 | 3.4 | ||||||||||||
Pretax margin % | 2.0 | 2.2 | ||||||||||||
Adjusted pretax margin % (1) | 2.3 | 2.4 | ||||||||||||
INTEREST EXPENSE: | ||||||||||||||
Floorplan interest expense | $ | (38,659 | ) | $ | (33,737 | ) | 14.6 | 15.4 | ||||||
Floorplan assistance | 35,745 | 36,818 | (2.9 | ) | (2.7 | ) | ||||||||
Net floorplan (expense) income | $ | (2,914 | ) | $ | 3,081 | (194.6 | ) | (201.1 | ) | |||||
Other interest expense, net | $ | (52,188 | ) | $ | (50,729 | ) | 2.9 | 3.2 |
Group 1 Automotive, Inc. | |||||||||||
Additional Information - Same Store U.S. (1) | |||||||||||
(Unaudited) | |||||||||||
(Dollars in thousands, except per unit amounts) | |||||||||||
Three Months Ended September 30, | |||||||||||
2017 | 2016 | % Increase/(Decrease) | |||||||||
REVENUES: | |||||||||||
New vehicle retail sales | $ | 1,283,050 | $ | 1,238,239 | 3.6 | ||||||
Used vehicle retail sales | 557,657 | 568,306 | (1.9 | ) | |||||||
Used vehicle wholesale sales | 62,552 | 74,020 | (15.5 | ) | |||||||
Total used | 620,209 | 642,326 | (3.4 | ) | |||||||
Parts and service | 281,735 | 269,072 | 4.7 | ||||||||
Finance, insurance and other, net | 95,195 | 96,685 | (1.5 | ) | |||||||
Total | $ | 2,280,189 | $ | 2,246,322 | 1.5 | ||||||
GROSS MARGIN %: | |||||||||||
New vehicle retail sales | 5.1 | 4.9 | |||||||||
Used vehicle retail sales | 6.7 | 6.8 | |||||||||
Used vehicle wholesale sales | (0.2 | ) | (2.0 | ) | |||||||
Total used | 6.0 | 5.8 | |||||||||
Parts and service | 53.8 | 54.7 | |||||||||
Finance, insurance and other, net | 100.0 | 100.0 | |||||||||
Total | 15.3 | 15.3 | |||||||||
GROSS PROFIT: | |||||||||||
New vehicle retail sales | $ | 65,712 | $ | 61,270 | 7.2 | ||||||
Used vehicle retail sales | 37,638 | 38,909 | (3.3 | ) | |||||||
Used vehicle wholesale sales | (138 | ) | (1,477 | ) | 90.7 | ||||||
Total used | 37,500 | 37,432 | 0.2 | ||||||||
Parts and service | 151,481 | 147,215 | 2.9 | ||||||||
Finance, insurance and other, net | 95,195 | 96,685 | (1.5 | ) | |||||||
Total | $ | 349,888 | $ | 342,602 | 2.1 | ||||||
UNITS SOLD: | |||||||||||
Retail new vehicles sold | 34,917 | 34,080 | 2.5 | ||||||||
Retail used vehicles sold | 26,093 | 26,800 | (2.6 | ) | |||||||
Wholesale used vehicles sold | 9,672 | 10,832 | (10.7 | ) | |||||||
Total used | 35,765 | 37,632 | (5.0 | ) | |||||||
AVERAGE RETAIL SALES PRICE: | |||||||||||
New vehicle retail | $ | 36,746 | $ | 36,333 | 1.1 | ||||||
Used vehicle retail | $ | 21,372 | $ | 21,205 | 0.8 | ||||||
GROSS PROFIT PER UNIT SOLD: | |||||||||||
New vehicle retail sales | $ | 1,882 | $ | 1,798 | 4.7 | ||||||
Used vehicle retail sales | 1,442 | 1,452 | (0.7 | ) | |||||||
Used vehicle wholesale sales | (14 | ) | (136 | ) | 89.7 | ||||||
Total used | 1,049 | 995 | 5.4 | ||||||||
Finance, insurance and other, net (per retail unit) | $ | 1,560 | $ | 1,588 | (1.8 | ) | |||||
OTHER: | |||||||||||
Adjusted Finance, insurance and other revenue, net (2) (3) | $ | 101,745 | $ | 96,685 | 5.2 | ||||||
Adjusted Total revenue (2) | $ | 2,286,739 | $ | 2,246,322 | 1.8 | ||||||
Adjusted Total gross profit (2) | $ | 356,438 | $ | 342,602 | 4.0 | ||||||
Adjusted Total gross margin (2) | 15.6 | 15.3 | |||||||||
Adjusted Finance, insurance and other, net (per retail unit) (2) | $ | 1,668 | $ | 1,588 | 5.0 | ||||||
SG&A expenses | $ | 258,862 | $ | 243,151 | 6.5 | ||||||
Adjusted SG&A expenses (2) | $ | 249,195 | $ | 242,701 | 2.7 | ||||||
SG&A as % revenues | 11.4 | 10.8 | |||||||||
Adjusted SG&A as % revenues (2) | 10.9 | 10.8 | |||||||||
SG&A as % gross profit | 74.0 | 71.0 | |||||||||
Adjusted SG&A as % gross profit (2) | 69.9 | 70.8 | |||||||||
Operating margin % | 3.0 | 3.5 | |||||||||
Adjusted operating margin % (2) | 4.2 | 4.0 |
Nine Months Ended September 30, | |||||||||||
2017 | 2016 | % Increase/(Decrease) | |||||||||
REVENUES: | |||||||||||
New vehicle retail sales | $ | 3,441,300 | $ | 3,505,583 | (1.8 | ) | |||||
Used vehicle retail sales | 1,614,613 | 1,684,837 | (4.2 | ) | |||||||
Used vehicle wholesale sales | 199,320 | 202,003 | (1.3 | ) | |||||||
Total used | 1,813,933 | 1,886,840 | (3.9 | ) | |||||||
Parts and service | 835,188 | 796,455 | 4.9 | ||||||||
Finance, insurance and other, net | 274,464 | 279,919 | (1.9 | ) | |||||||
Total | $ | 6,364,885 | $ | 6,468,797 | (1.6 | ) | |||||
GROSS MARGIN %: | |||||||||||
New vehicle retail sales | 5.1 | 5.0 | |||||||||
Used vehicle retail sales | 7.0 | 7.2 | |||||||||
Used vehicle wholesale sales | (0.1 | ) | (0.1 | ) | |||||||
Total used | 6.2 | 6.4 | |||||||||
Parts and service | 53.8 | 54.5 | |||||||||
Finance, insurance and other, net | 100.0 | 100.0 | |||||||||
Total | 15.9 | 15.6 | |||||||||
GROSS PROFIT: | |||||||||||
New vehicle retail sales | $ | 173,908 | $ | 175,554 | (0.9 | ) | |||||
Used vehicle retail sales | 112,216 | 121,040 | (7.3 | ) | |||||||
Used vehicle wholesale sales | (232 | ) | (213 | ) | (8.9 | ) | |||||
Total used | 111,984 | 120,827 | (7.3 | ) | |||||||
Parts and service | 449,262 | 433,879 | 3.5 | ||||||||
Finance, insurance and other, net | 274,464 | 279,919 | (1.9 | ) | |||||||
Total | $ | 1,009,618 | $ | 1,010,179 | (0.1 | ) | |||||
UNITS SOLD: | |||||||||||
Retail new vehicles sold | 93,090 | 96,676 | (3.7 | ) | |||||||
Retail used vehicles sold | 76,156 | 79,587 | (4.3 | ) | |||||||
Wholesale used vehicles sold | 29,315 | 30,271 | (3.2 | ) | |||||||
Total used | 105,471 | 109,858 | (4.0 | ) | |||||||
AVERAGE RETAIL SALES PRICE: | |||||||||||
New vehicle retail | $ | 36,967 | $ | 36,261 | 1.9 | ||||||
Used vehicle retail | $ | 21,201 | $ | 21,170 | 0.1 | ||||||
GROSS PROFIT PER UNIT SOLD: | |||||||||||
New vehicle retail sales | $ | 1,868 | $ | 1,816 | 2.9 | ||||||
Used vehicle retail sales | 1,474 | 1,521 | (3.1 | ) | |||||||
Used vehicle wholesale sales | (8 | ) | (7 | ) | (14.3 | ) | |||||
Total used | 1,062 | 1,100 | (3.5 | ) | |||||||
Finance, insurance and other, net (per retail unit) | $ | 1,622 | $ | 1,588 | 2.1 |
OTHER: | |||||||||||
Adjusted Finance, insurance and other revenue, net (2) (3) | $ | 281,014 | $ | 279,919 | 0.4 | ||||||
Adjusted Total revenue (2) | $ | 6,371,435 | $ | 6,468,797 | (1.5 | ) | |||||
Adjusted Total gross profit (2) | $ | 1,016,168 | $ | 1,010,179 | 0.6 | ||||||
Adjusted Total gross margin (2) | 15.9 | 15.6 | |||||||||
Adjusted Finance, insurance and other, net (per retail unit) (2) | $ | 1,660 | $ | 1,588 | 4.5 | ||||||
SG&A expenses | $ | 737,548 | $ | 725,162 | 1.7 | ||||||
Adjusted SG&A expenses (2) | $ | 729,071 | $ | 718,875 | 1.4 | ||||||
SG&A as % revenues | 11.6 | 11.2 | |||||||||
Adjusted SG&A as % revenues (2) | 11.5 | 11.1 | |||||||||
SG&A as % gross profit | 73.1 | 71.8 | |||||||||
Adjusted SG&A as % gross profit (2) | 71.7 | 71.2 | |||||||||
Operating margin % | 3.6 | 3.7 | |||||||||
Adjusted operating margin % (2) | 4.0 | 4.0 |
Group 1 Automotive, Inc. | ||||||||||||||
Additional Information - Same Store U.K. (1) | ||||||||||||||
(Unaudited) | ||||||||||||||
(Dollars in thousands, except per unit amounts) | ||||||||||||||
Three Months Ended September 30, | ||||||||||||||
2017 | 2016 | % Increase/(Decrease) | Constant Currency (2) % Increase/(Decrease) | |||||||||||
REVENUES: | ||||||||||||||
New vehicle retail sales | $ | 270,750 | $ | 254,246 | 6.5 | 6.2 | ||||||||
Used vehicle retail sales | 120,723 | 104,692 | 15.3 | 15.6 | ||||||||||
Used vehicle wholesale sales | 30,565 | 27,891 | 9.6 | 9.8 | ||||||||||
Total used | 151,288 | 132,583 | 14.1 | 14.4 | ||||||||||
Parts and service | 37,360 | 35,360 | 5.7 | 6.0 | ||||||||||
Finance, insurance and other, net | 9,487 | 8,634 | 9.9 | 9.8 | ||||||||||
Total | $ | 468,885 | $ | 430,823 | 8.8 | 8.8 | ||||||||
GROSS MARGIN %: | ||||||||||||||
New vehicle retail sales | 5.2 | 5.5 | ||||||||||||
Used vehicle retail sales | 4.9 | 4.8 | ||||||||||||
Used vehicle wholesale sales | (1.1 | ) | (1.5 | ) | ||||||||||
Total used | 3.7 | 3.5 | ||||||||||||
Parts and service | 58.1 | 55.7 | ||||||||||||
Finance, insurance and other, net | 100.0 | 100.0 | ||||||||||||
Total | 10.9 | 10.9 | ||||||||||||
GROSS PROFIT: | ||||||||||||||
New vehicle retail sales | $ | 14,065 | $ | 13,919 | 1.0 | 0.5 | ||||||||
Used vehicle retail sales | 5,970 | 5,034 | 18.6 | 19.0 | ||||||||||
Used vehicle wholesale sales | (332 | ) | (409 | ) | 18.8 | 17.3 | ||||||||
Total used | 5,638 | 4,625 | 21.9 | 22.2 | ||||||||||
Parts and service | 21,710 | 19,683 | 10.3 | 10.6 | ||||||||||
Finance, insurance and other, net | 9,487 | 8,634 | 9.9 | 9.8 | ||||||||||
Total | $ | 50,900 | $ | 46,861 | 8.6 | 8.6 | ||||||||
UNITS SOLD: | ||||||||||||||
Retail new vehicles sold | 8,573 | 8,331 | 2.9 | |||||||||||
Retail used vehicles sold | 5,094 | 4,643 | 9.7 | |||||||||||
Wholesale used vehicles sold | 3,795 | 3,563 | 6.5 | |||||||||||
Total used | 8,889 | 8,206 | 8.3 | |||||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||||
New vehicle retail | $ | 31,582 | $ | 30,518 | 3.5 | 3.2 | ||||||||
Used vehicle retail | $ | 23,699 | $ | 22,548 | 5.1 | 5.4 | ||||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||||
New vehicle retail sales | $ | 1,641 | $ | 1,671 | (1.8 | ) | (2.3 | ) | ||||||
Used vehicle retail sales | 1,172 | 1,084 | 8.1 | 8.5 | ||||||||||
Used vehicle wholesale sales | (87 | ) | (115 | ) | 24.3 | 22.3 | ||||||||
Total used | 634 | 564 | 12.4 | 12.8 | ||||||||||
Finance, insurance and other, net (per retail unit) | $ | 694 | $ | 665 | 4.4 | 4.2 | ||||||||
OTHER: | ||||||||||||||
SG&A expenses | $ | 41,538 | $ | 38,836 | 7.0 | 7.2 | ||||||||
SG&A as % revenues | 8.9 | 9.0 | ||||||||||||
SG&A as % gross profit | 81.6 | 82.9 | ||||||||||||
Operating margin % | 1.6 | 1.5 |
Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | % Increase/(Decrease) | Constant Currency (2) % Increase/(Decrease) | |||||||||||
REVENUES: | ||||||||||||||
New vehicle retail sales | $ | 719,059 | $ | 746,389 | (3.7 | ) | 4.6 | |||||||
Used vehicle retail sales | 336,591 | 326,141 | 3.2 | 12.4 | ||||||||||
Used vehicle wholesale sales | 84,564 | 89,360 | (5.4 | ) | 3.1 | |||||||||
Total used | 421,155 | 415,501 | 1.4 | 10.4 | ||||||||||
Parts and service | 101,479 | 105,032 | (3.4 | ) | 5.1 | |||||||||
Finance, insurance and other, net | 26,498 | 26,338 | 0.6 | 9.4 | ||||||||||
Total | $ | 1,268,191 | $ | 1,293,260 | (1.9 | ) | 6.6 | |||||||
GROSS MARGIN %: | ||||||||||||||
New vehicle retail sales | 5.6 | 5.7 | ||||||||||||
Used vehicle retail sales | 5.1 | 5.2 | ||||||||||||
Used vehicle wholesale sales | (0.6 | ) | 0.1 | |||||||||||
Total used | 3.9 | 4.1 | ||||||||||||
Parts and service | 57.6 | 55.1 | ||||||||||||
Finance, insurance and other, net | 100.0 | 100.0 | ||||||||||||
Total | 11.2 | 11.1 | ||||||||||||
GROSS PROFIT: | ||||||||||||||
New vehicle retail sales | $ | 40,190 | $ | 42,704 | (5.9 | ) | 2.2 | |||||||
Used vehicle retail sales | 17,047 | 16,926 | 0.7 | 10.1 | ||||||||||
Used vehicle wholesale sales | (494 | ) | 92 | (637.0 | ) | (1,035.6 | ) | |||||||
Total used | 16,553 | 17,018 | (2.7 | ) | 4.4 | |||||||||
Parts and service | 58,473 | 57,903 | 1.0 | 9.7 | ||||||||||
Finance, insurance and other, net | 26,498 | 26,338 | 0.6 | 9.4 | ||||||||||
Total | $ | 141,714 | $ | 143,963 | (1.6 | ) | 7.1 | |||||||
UNITS SOLD: | ||||||||||||||
Retail new vehicles sold | 23,853 | 22,956 | 3.9 | |||||||||||
Retail used vehicles sold | 15,015 | 13,718 | 9.5 | |||||||||||
Wholesale used vehicles sold | 11,039 | 10,803 | 2.2 | |||||||||||
Total used | 26,054 | 24,521 | 6.3 | |||||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||||
New vehicle retail | $ | 30,145 | $ | 32,514 | (7.3 | ) | 0.7 | |||||||
Used vehicle retail | $ | 22,417 | $ | 23,775 | (5.7 | ) | 2.7 | |||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||||
New vehicle retail sales | $ | 1,685 | $ | 1,860 | (9.4 | ) | (1.6 | ) | ||||||
Used vehicle retail sales | 1,135 | 1,234 | (8.0 | ) | 0.6 | |||||||||
Used vehicle wholesale sales | (45 | ) | 9 | (600.0 | ) | (1,015.6 | ) | |||||||
Total used | 635 | 694 | (8.5 | ) | (1.7 | ) | ||||||||
Finance, insurance and other, net (per retail unit) | $ | 682 | $ | 718 | (5.0 | ) | 3.2 | |||||||
OTHER: | ||||||||||||||
SG&A expenses | $ | 113,338 | $ | 112,159 | 1.1 | 9.8 | ||||||||
Adjusted SG&A expenses (2) | $ | 113,050 | $ | 111,598 | 1.3 | 10.1 | ||||||||
SG&A as % revenues | 8.9 | 8.7 | ||||||||||||
Adjusted SG&A as % revenues (2) | 8.9 | 8.6 | ||||||||||||
SG&A as % gross profit | 80.0 | 77.9 | ||||||||||||
Adjusted SG&A as % gross profit (2) | 79.8 | 77.5 | ||||||||||||
Operating margin % | 1.9 | 2.1 | ||||||||||||
Adjusted operating margin % (2) | 1.9 | 2.1 |
Group 1 Automotive, Inc. | ||||||||||||||
Additional Information - Same Store Brazil (1) | ||||||||||||||
(Unaudited) | ||||||||||||||
(Dollars in thousands, except per unit amounts) | ||||||||||||||
Three Months Ended September 30, | ||||||||||||||
2017 | 2016 | % Increase/(Decrease) | Constant Currency (2) % Increase/(Decrease) | |||||||||||
REVENUES: | ||||||||||||||
New vehicle retail sales | $ | 78,689 | $ | 72,086 | 9.2 | 6.5 | ||||||||
Used vehicle retail sales | 22,846 | 18,717 | 22.1 | 19.0 | ||||||||||
Used vehicle wholesale sales | 2,818 | 811 | 247.5 | 239.0 | ||||||||||
Total used | 25,664 | 19,528 | 31.4 | 28.1 | ||||||||||
Parts and service | 12,445 | 11,138 | 11.7 | 9.0 | ||||||||||
Finance, insurance and other, net | 2,157 | 1,595 | 35.2 | 31.9 | ||||||||||
Total | $ | 118,955 | $ | 104,347 | 14.0 | 11.2 | ||||||||
GROSS MARGIN %: | ||||||||||||||
New vehicle retail sales | 5.7 | 5.8 | ||||||||||||
Used vehicle retail sales | 7.4 | 7.7 | ||||||||||||
Used vehicle wholesale sales | 7.7 | 7.3 | ||||||||||||
Total used | 7.4 | 7.6 | ||||||||||||
Parts and service | 45.5 | 38.8 | ||||||||||||
Finance, insurance and other, net | 100.0 | 100.0 | ||||||||||||
Total | 11.9 | 11.1 | ||||||||||||
GROSS PROFIT: | ||||||||||||||
New vehicle retail sales | $ | 4,464 | $ | 4,182 | 6.7 | 4.2 | ||||||||
Used vehicle retail sales | 1,689 | 1,433 | 17.9 | 14.9 | ||||||||||
Used vehicle wholesale sales | 216 | 59 | 266.1 | 258.5 | ||||||||||
Total used | 1,905 | 1,492 | 27.7 | 24.5 | ||||||||||
Parts and service | 5,665 | 4,327 | 30.9 | 27.8 | ||||||||||
Finance, insurance and other, net | 2,157 | 1,595 | 35.2 | 31.9 | ||||||||||
Total | $ | 14,191 | $ | 11,596 | 22.4 | 19.4 | ||||||||
UNITS SOLD: | ||||||||||||||
Retail new vehicles sold | 2,155 | 2,152 | 0.1 | |||||||||||
Retail used vehicles sold | 1,028 | 922 | 11.5 | |||||||||||
Wholesale used vehicles sold | 242 | 283 | (14.5 | ) | ||||||||||
Total used | 1,270 | 1,205 | 5.4 | |||||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||||
New vehicle retail | $ | 36,515 | $ | 33,497 | 9.0 | 6.3 | ||||||||
Used vehicle retail | $ | 22,224 | $ | 20,300 | 9.5 | 6.7 | ||||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||||
New vehicle retail sales | $ | 2,071 | $ | 1,943 | 6.6 | 4.0 | ||||||||
Used vehicle retail sales | 1,643 | 1,554 | 5.7 | 3.1 | ||||||||||
Used vehicle wholesale sales | 893 | 208 | 329.3 | 319.2 | ||||||||||
Total used | 1,500 | 1,238 | 21.2 | 18.2 | ||||||||||
Finance, insurance and other, net (per retail unit) | $ | 678 | $ | 519 | 30.6 | 27.4 | ||||||||
OTHER: | ||||||||||||||
SG&A expenses | $ | 12,746 | $ | 11,762 | 8.4 | 5.7 | ||||||||
Adjusted SG&A expenses (2) | $ | 12,746 | $ | 11,488 | 11.0 | 8.2 | ||||||||
SG&A as % revenues | 10.7 | 11.3 | ||||||||||||
Adjusted SG&A as % revenues (2) | 10.7 | 11.0 | ||||||||||||
SG&A as % gross profit | 89.8 | 101.4 | ||||||||||||
Adjusted SG&A as % gross profit (2) | 89.8 | 99.1 | ||||||||||||
Operating margin % | 0.9 | (0.4 | ) | |||||||||||
Adjusted operating margin % (2) | 0.9 | (0.1 | ) |
Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | % Increase/(Decrease) | Constant Currency (2) % Increase/(Decrease) | |||||||||||
REVENUES: | ||||||||||||||
New vehicle retail sales | $ | 204,640 | $ | 200,165 | 2.2 | (7.8 | ) | |||||||
Used vehicle retail sales | 64,126 | 50,794 | 26.2 | 13.4 | ||||||||||
Used vehicle wholesale sales | 8,247 | 1,871 | 340.8 | 301.7 | ||||||||||
Total used | 72,373 | 52,665 | 37.4 | 23.6 | ||||||||||
Parts and service | 34,294 | 29,006 | 18.2 | 6.9 | ||||||||||
Finance, insurance and other, net | 5,913 | 4,178 | 41.5 | 28.1 | ||||||||||
Total | $ | 317,220 | $ | 286,014 | 10.9 | — | ||||||||
GROSS MARGIN %: | ||||||||||||||
New vehicle retail sales | 5.8 | 5.7 | ||||||||||||
Used vehicle retail sales | 7.3 | 5.9 | ||||||||||||
Used vehicle wholesale sales | 7.9 | 7.4 | ||||||||||||
Total used | 7.4 | 6.0 | ||||||||||||
Parts and service | 45.8 | 39.0 | ||||||||||||
Finance, insurance and other, net | 100.0 | 100.0 | ||||||||||||
Total | 12.2 | 10.5 | ||||||||||||
GROSS PROFIT: | ||||||||||||||
New vehicle retail sales | $ | 11,858 | $ | 11,394 | 4.1 | (6.2 | ) | |||||||
Used vehicle retail sales | 4,708 | 3,018 | 56.0 | 43.8 | ||||||||||
Used vehicle wholesale sales | 653 | 138 | 373.2 | 330.1 | ||||||||||
Total used | 5,361 | 3,156 | 69.9 | 56.3 | ||||||||||
Parts and service | 15,722 | 11,316 | 38.9 | 25.5 | ||||||||||
Finance, insurance and other, net | 5,913 | 4,178 | 41.5 | 28.1 | ||||||||||
Total | $ | 38,854 | $ | 30,044 | 29.3 | 17.0 | ||||||||
UNITS SOLD: | ||||||||||||||
Retail new vehicles sold | 5,864 | 6,690 | (12.3 | ) | ||||||||||
Retail used vehicles sold | 2,925 | 2,901 | 0.8 | |||||||||||
Wholesale used vehicles sold | 723 | 634 | 14.0 | |||||||||||
Total used | 3,648 | 3,535 | 3.2 | |||||||||||
AVERAGE RETAIL SALES PRICE: | ||||||||||||||
New vehicle retail | $ | 34,898 | $ | 29,920 | 16.6 | 5.2 | ||||||||
Used vehicle retail | $ | 21,923 | $ | 17,509 | 25.2 | 12.4 | ||||||||
GROSS PROFIT PER UNIT SOLD: | ||||||||||||||
New vehicle retail sales | $ | 2,022 | $ | 1,703 | 18.7 | 7.0 | ||||||||
Used vehicle retail sales | 1,610 | 1,040 | 54.8 | 42.6 | ||||||||||
Used vehicle wholesale sales | 903 | 218 | 314.2 | 277.1 | ||||||||||
Total used | 1,470 | 893 | 64.6 | 51.5 | ||||||||||
Finance, insurance and other, net (per retail unit) | $ | 673 | $ | 436 | 54.4 | 39.8 | ||||||||
OTHER: | ||||||||||||||
SG&A expenses | $ | 34,693 | $ | 29,192 | 18.8 | 7.6 | ||||||||
Adjusted SG&A expenses (2) | $ | 34,693 | $ | 28,918 | 20.0 | 8.6 | ||||||||
SG&A as % revenues | 10.9 | 10.2 | ||||||||||||
Adjusted SG&A as % revenues (2) | 10.9 | 10.1 | ||||||||||||
SG&A as % gross profit | 89.3 | 97.2 | ||||||||||||
Adjusted SG&A as % gross profit (2) | 89.3 | 96.3 | ||||||||||||
Operating margin % | 1.0 | — | ||||||||||||
Adjusted operating margin % (2) | 1.0 | 0.1 |
Group 1 Automotive, Inc. | |||||||||||||||
Additional Information - Same Store Consolidated (1) | |||||||||||||||
(Unaudited) | |||||||||||||||
(Dollars in thousands, except per unit amounts) | |||||||||||||||
Three Months Ended September 30, | |||||||||||||||
2017 | 2016 | % Increase/(Decrease) | Constant Currency (2) % Increase/(Decrease) | ||||||||||||
REVENUES: | |||||||||||||||
New vehicle retail sales | $ | 1,632,489 | $ | 1,564,571 | 4.3 | 4.2 | |||||||||
Used vehicle retail sales | 701,226 | 691,715 | 1.4 | 1.3 | |||||||||||
Used vehicle wholesale sales | 95,935 | 102,722 | (6.6 | ) | (6.6 | ) | |||||||||
Total used | 797,161 | 794,437 | 0.3 | 0.3 | |||||||||||
Parts and service | 331,540 | 315,570 | 5.1 | 5.0 | |||||||||||
Finance, insurance and other, net | 106,839 | 106,914 | (0.1 | ) | (0.1 | ) | |||||||||
Total | $ | 2,868,029 | $ | 2,781,492 | 3.1 | 3.0 | |||||||||
GROSS MARGIN %: | |||||||||||||||
New vehicle retail sales | 5.2 | 5.1 | |||||||||||||
Used vehicle retail sales | 6.5 | 6.6 | |||||||||||||
Used vehicle wholesale sales | (0.3 | ) | (1.8 | ) | |||||||||||
Total used | 5.7 | 5.5 | |||||||||||||
Parts and service | 53.9 | 54.3 | |||||||||||||
Finance, insurance and other, net | 100.0 | 100.0 | |||||||||||||
Total | 14.5 | 14.4 | |||||||||||||
GROSS PROFIT: | |||||||||||||||
New vehicle retail sales | $ | 84,241 | $ | 79,371 | 6.1 | 5.9 | |||||||||
Used vehicle retail sales | 45,297 | 45,376 | (0.2 | ) | (0.2 | ) | |||||||||
Used vehicle wholesale sales | (254 | ) | (1,827 | ) | 86.1 | 85.5 | |||||||||
Total used | 45,043 | 43,549 | 3.4 | 3.4 | |||||||||||
Parts and service | 178,856 | 171,225 | 4.5 | 4.4 | |||||||||||
Finance, insurance and other, net | 106,839 | 106,914 | (0.1 | ) | (0.1 | ) | |||||||||
Total | $ | 414,979 | $ | 401,059 | 3.5 | 3.4 | |||||||||
UNITS SOLD: | |||||||||||||||
Retail new vehicles sold | 45,645 | 44,563 | 2.4 | ||||||||||||
Retail used vehicles sold | 32,215 | 32,365 | (0.5 | ) | |||||||||||
Wholesale used vehicles sold | 13,709 | 14,678 | (6.6 | ) | |||||||||||
Total used | 45,924 | 47,043 | (2.4 | ) | |||||||||||
AVERAGE RETAIL SALES PRICE: | |||||||||||||||
New vehicle retail | $ | 35,765 | $ | 35,109 | 1.9 | 1.7 | |||||||||
Used vehicle retail | $ | 21,767 | $ | 21,372 | 1.8 | 1.8 | |||||||||
GROSS PROFIT PER UNIT SOLD: | |||||||||||||||
New vehicle retail sales | $ | 1,846 | $ | 1,781 | 3.6 | 3.4 | |||||||||
Used vehicle retail sales | 1,406 | 1,402 | 0.3 | 0.2 | |||||||||||
Used vehicle wholesale sales | (19 | ) | (124 | ) | 84.7 | 84.5 | |||||||||
Total used | 981 | 926 | 5.9 | 5.9 | |||||||||||
Finance, insurance and other, net (per retail unit) | $ | 1,372 | $ | 1,390 | (1.3 | ) | (1.3 | ) |
OTHER: | |||||||||||||||
Adjusted Finance, insurance and other revenue, net(2) (3) | $ | 113,389 | $ | 106,914 | 6.1 | 6.0 | |||||||||
Adjusted Total revenue (2) | $ | 2,874,579 | $ | 2,781,492 | 3.3 | 3.2 | |||||||||
Adjusted Total gross profit (2) | $ | 421,529 | $ | 401,059 | 5.1 | 5.0 | |||||||||
Adjusted Total gross margin (2) | 14.7 | 14.4 | |||||||||||||
Adjusted Finance, insurance and other, net (per retail unit) (2) | $ | 1,456 | $ | 1,390 | 4.7 | 4.7 | |||||||||
SG&A expenses | $ | 313,146 | $ | 293,749 | 6.6 | 6.5 | |||||||||
Adjusted SG&A expenses (2) | $ | 303,479 | $ | 293,025 | 3.6 | 3.5 | |||||||||
SG&A as % revenues | 10.9 | 10.6 | |||||||||||||
Adjusted SG&A as % revenues (2) | 10.6 | 10.5 | |||||||||||||
SG&A as % gross profit | 75.5 | 73.2 | |||||||||||||
Adjusted SG&A as % gross profit (2) | 72.0 | 73.1 | |||||||||||||
Operating margin % | 2.7 | 3.0 | |||||||||||||
Adjusted operating margin % (2) | 3.6 | 3.4 |
Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | % Increase/ (Decrease) | Constant Currency (2) % Increase/(Decrease) | ||||||||||||
REVENUES: | |||||||||||||||
New vehicle retail sales | $ | 4,364,999 | $ | 4,452,137 | (2.0 | ) | (1.0 | ) | |||||||
Used vehicle retail sales | 2,015,330 | 2,061,772 | (2.3 | ) | (1.1 | ) | |||||||||
Used vehicle wholesale sales | 292,131 | 293,234 | (0.4 | ) | 2.0 | ||||||||||
Total used | 2,307,461 | 2,355,006 | (2.0 | ) | (0.7 | ) | |||||||||
Parts and service | 970,961 | 930,493 | 4.3 | 5.0 | |||||||||||
Finance, insurance and other, net | 306,875 | 310,435 | (1.1 | ) | (0.6 | ) | |||||||||
Total | $ | 7,950,296 | $ | 8,048,071 | (1.2 | ) | (0.2 | ) | |||||||
GROSS MARGIN %: | |||||||||||||||
New vehicle retail sales | 5.2 | 5.2 | |||||||||||||
Used vehicle retail sales | 6.6 | 6.8 | |||||||||||||
Used vehicle wholesale sales | — | — | |||||||||||||
Total used | 5.8 | 6.0 | |||||||||||||
Parts and service | 53.9 | 54.1 | |||||||||||||
Finance, insurance and other, net | 100.0 | 100.0 | |||||||||||||
Total | 15.0 | 14.7 | |||||||||||||
GROSS PROFIT: | |||||||||||||||
New vehicle retail sales | $ | 225,956 | $ | 229,652 | (1.6 | ) | (0.6 | ) | |||||||
Used vehicle retail sales | 133,971 | 140,984 | (5.0 | ) | (4.1 | ) | |||||||||
Used vehicle wholesale sales | (73 | ) | 17 | (529.4 | ) | (3,053.6 | ) | ||||||||
Total used | 133,898 | 141,001 | (5.0 | ) | (4.5 | ) | |||||||||
Parts and service | 523,457 | 503,098 | 4.0 | 4.8 | |||||||||||
Finance, insurance and other, net | 306,875 | 310,435 | (1.1 | ) | (0.6 | ) | |||||||||
Total | $ | 1,190,186 | $ | 1,184,186 | 0.5 | 1.2 | |||||||||
UNITS SOLD: | |||||||||||||||
Retail new vehicles sold | 122,807 | 126,322 | (2.8 | ) | |||||||||||
Retail used vehicles sold | 94,096 | 96,206 | (2.2 | ) | |||||||||||
Wholesale used vehicles sold | 41,077 | 41,708 | (1.5 | ) | |||||||||||
Total used | 135,173 | 137,914 | (2.0 | ) | |||||||||||
AVERAGE RETAIL SALES PRICE: | |||||||||||||||
New vehicle retail | $ | 35,544 | $ | 35,244 | 0.8 | 1.8 | |||||||||
Used vehicle retail | $ | 21,418 | $ | 21,431 | (0.1 | ) | 1.1 | ||||||||
GROSS PROFIT PER UNIT SOLD: | |||||||||||||||
New vehicle retail sales | $ | 1,840 | $ | 1,818 | 1.2 | 2.2 | |||||||||
Used vehicle retail sales | 1,424 | 1,465 | (2.8 | ) | (2.0 | ) | |||||||||
Used vehicle wholesale sales | (2 | ) | — | — | (3,099.0 | ) | |||||||||
Total used | 991 | 1,022 | (3.0 | ) | (2.5 | ) | |||||||||
Finance, insurance and other, net (per retail unit) | $ | 1,415 | $ | 1,395 | 1.4 | 2.0 |
OTHER: | |||||||||||||||
Adjusted Finance, insurance and other revenue, net (2) (3) | $ | 313,425 | $ | 310,435 | 1.0 | 1.5 | |||||||||
Adjusted Total revenue (2) | $ | 7,956,846 | $ | 8,048,071 | (1.1 | ) | (0.1 | ) | |||||||
Adjusted Total gross profit (2) | $ | 1,196,736 | $ | 1,184,186 | 1.1 | 1.8 | |||||||||
Adjusted Total gross margin (2) | 15.0 | 14.7 | |||||||||||||
Adjusted Finance, insurance and other, net (per retail unit) (2) | $ | 1,445 | $ | 1,395 | 3.6 | 4.2 | |||||||||
SG&A expenses | $ | 885,579 | $ | 866,513 | 2.2 | 3.0 | |||||||||
Adjusted SG&A expenses (2) | $ | 876,814 | $ | 859,391 | 2.0 | 2.8 | |||||||||
SG&A as % revenues | 11.1 | 10.8 | |||||||||||||
Adjusted SG&A as % revenues (2) | 11.0 | 10.7 | |||||||||||||
SG&A as % gross profit | 74.4 | 73.2 | |||||||||||||
Adjusted SG&A as % gross profit (2) | 73.3 | 72.6 | |||||||||||||
Operating margin % | 3.2 | 3.3 | |||||||||||||
Adjusted operating margin % (2) | 3.5 | 3.6 |
Group 1 Automotive, Inc. | ||||||||||||
Reconciliation of Certain Non-GAAP Financial Measures - U.S. | ||||||||||||
(Unaudited) | ||||||||||||
(Dollars in thousands) | ||||||||||||
Three Months Ended September 30, | ||||||||||||
2017 | 2016 | % Increase/(Decrease) | ||||||||||
FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION: | ||||||||||||
As reported | $ | 96,383 | $ | 98,295 | (1.9 | ) | ||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Finance, insurance and other revenue, net (1) | $ | 102,933 | $ | 98,295 | 4.7 | |||||||
TOTAL REVENUES RECONCILIATION: | ||||||||||||
As reported | $ | 2,301,959 | $ | 2,274,723 | 1.2 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Total Revenues (1) | $ | 2,308,509 | $ | 2,274,723 | 1.5 | |||||||
TOTAL GROSS PROFIT RECONCILIATION: | ||||||||||||
As reported | $ | 353,567 | $ | 346,726 | 2.0 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Total Gross Profit (1) | $ | 360,117 | $ | 346,726 | 3.9 | |||||||
SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 261,787 | $ | 246,501 | 6.2 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | (8,149 | ) | (450 | ) | ||||||||
Gain (loss) on real estate and dealership transactions | (798 | ) | 1,176 | |||||||||
Legal settlements | (720 | ) | — | |||||||||
Adjusted SG&A (1) | $ | 252,120 | $ | 247,227 | 2.0 | |||||||
TOTAL GROSS MARGIN %: | ||||||||||||
Unadjusted | 15.4 | 15.2 | ||||||||||
Adjusted (1) | 15.6 | 15.2 | ||||||||||
FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT): | ||||||||||||
Unadjusted | $ | 1,566 | $ | 1,588 | (1.4 | ) | ||||||
Adjusted (1) | $ | 1,673 | $ | 1,588 | 5.4 | |||||||
SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 11.4 | 10.8 | ||||||||||
Adjusted (1) | 11.0 | 10.9 | ||||||||||
SG&A AS % GROSS PROFIT: | ||||||||||||
Unadjusted | 74.0 | 71.1 | ||||||||||
Adjusted (1) | 70.0 | 71.3 | ||||||||||
OPERATING MARGIN %: | ||||||||||||
Unadjusted | 3.0 | 3.4 | ||||||||||
Adjusted (1), (2) | 4.1 | 3.9 | ||||||||||
PRETAX MARGIN %: | ||||||||||||
Unadjusted | 1.8 | 2.3 | ||||||||||
Adjusted (1), (2) | 2.9 | 2.8 | ||||||||||
SAME STORE FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION: | ||||||||||||
As reported | $ | 95,195 | $ | 96,685 | (1.5 | ) |
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Finance, insurance and other revenue, net (1) | $ | 101,745 | $ | 96,685 | 5.2 | |||||||
SAME STORE TOTAL REVENUES RECONCILIATION: | ||||||||||||
As reported | $ | 2,280,189 | $ | 2,246,322 | 1.5 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Total Revenues (1) | $ | 2,286,739 | $ | 2,246,322 | 1.8 | |||||||
SAME STORE TOTAL GROSS PROFIT RECONCILIATION: | ||||||||||||
As reported | $ | 349,888 | $ | 342,602 | 2.1 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Total Gross Profit (1) | $ | 356,438 | $ | 342,602 | 4.0 | |||||||
SAME STORE SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 258,862 | $ | 243,151 | 6.5 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | (8,149 | ) | (450 | ) | ||||||||
Loss on real estate and dealership transactions | (798 | ) | — | |||||||||
Legal settlements | (720 | ) | — | |||||||||
Adjusted Same Store SG&A (1) | $ | 249,195 | $ | 242,701 | 2.7 | |||||||
SAME STORE TOTAL GROSS MARGIN %: | ||||||||||||
Unadjusted | 15.3 | 15.3 | ||||||||||
Adjusted (1) | 15.6 | 15.3 | ||||||||||
SAME STORE FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT): | ||||||||||||
Unadjusted | $ | 1,560 | $ | 1,588 | (1.8 | ) | ||||||
Adjusted (1) | $ | 1,668 | $ | 1,588 | 5.0 | |||||||
SAME STORE SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 11.4 | 10.8 | ||||||||||
Adjusted (1) | 10.9 | 10.8 | ||||||||||
SAME STORE SG&A AS % GROSS PROFIT: | ||||||||||||
Unadjusted | 74.0 | 71.0 | ||||||||||
Adjusted (1) | 69.9 | 70.8 | ||||||||||
SAME STORE OPERATING MARGIN % | ||||||||||||
Unadjusted | 3.0 | 3.5 | ||||||||||
Adjusted (1), (3) | 4.2 | 4.0 |
Nine Months Ended September 30, | ||||||||||||
2017 | 2016 | % Increase/(Decrease) | ||||||||||
FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION: | ||||||||||||
As reported | $ | 276,754 | $ | 284,644 | (2.8 | ) | ||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Finance, insurance and other revenue, net (1) | $ | 283,304 | $ | 284,644 | (0.5 | ) | ||||||
TOTAL REVENUES RECONCILIATION: | ||||||||||||
As reported | $ | 6,393,368 | $ | 6,563,739 | (2.6 | ) | ||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Total Revenues (1) | $ | 6,399,918 | $ | 6,563,739 | (2.5 | ) | ||||||
TOTAL GROSS PROFIT RECONCILIATION: | ||||||||||||
As reported | $ | 1,014,636 | $ | 1,024,033 | (0.9 | ) | ||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Total Gross Profit (1) | $ | 1,021,186 | $ | 1,024,033 | (0.3 | ) | ||||||
SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 741,904 | $ | 737,730 | 0.6 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | (8,792 | ) | (5,873 | ) | ||||||||
Gain (loss) on real estate and dealership transactions | (798 | ) | 1,856 | |||||||||
Acquisition costs | — | (30 | ) | |||||||||
Legal settlements (4) | 1,113 | — | ||||||||||
Adjusted SG&A (1) | $ | 733,427 | $ | 733,683 | — | |||||||
TOTAL GROSS MARGIN %: | ||||||||||||
Unadjusted | 15.9 | 15.6 | ||||||||||
Adjusted (1) | 16.0 | 15.6 | ||||||||||
FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT): | ||||||||||||
Unadjusted | $ | 1,628 | $ | 1,585 | 2.7 | |||||||
Adjusted (1) | $ | 1,667 | $ | 1,585 | 5.2 | |||||||
SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 11.6 | 11.2 | ||||||||||
Adjusted (1) | 11.5 | 11.2 | ||||||||||
SG&A AS % OF GROSS PROFIT: | ||||||||||||
Unadjusted | 73.1 | 72.0 | ||||||||||
Adjusted (1) | 71.8 | 71.6 | ||||||||||
OPERATING MARGIN %: | ||||||||||||
Unadjusted | 3.6 | 3.7 | ||||||||||
Adjusted (1), (2) | 3.9 | 3.9 | ||||||||||
PRETAX MARGIN %: | ||||||||||||
Unadjusted | 2.2 | 2.5 | ||||||||||
Adjusted (1), (2) | 2.6 | 2.8 | ||||||||||
SAME STORE FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION: | ||||||||||||
As reported | $ | 274,464 | $ | 279,919 | (1.9 | ) | ||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Finance, insurance and other revenue, net (1) | $ | 281,014 | $ | 279,919 | 0.4 |
SAME STORE TOTAL REVENUES RECONCILIATION: | ||||||||||||
As reported | $ | 6,364,885 | $ | 6,468,797 | (1.6 | ) | ||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Total Revenues (1) | $ | 6,371,435 | $ | 6,468,797 | (1.5 | ) | ||||||
SAME STORE TOTAL GROSS PROFIT RECONCILIATION: | ||||||||||||
As reported | $ | 1,009,618 | $ | 1,010,179 | (0.1 | ) | ||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Total Gross Profit (1) | $ | 1,016,168 | $ | 1,010,179 | 0.6 | |||||||
SAME STORE SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 737,548 | $ | 725,162 | 1.7 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | (8,792 | ) | (5,873 | ) | ||||||||
Loss on real estate and dealership transactions | (798 | ) | (384 | ) | ||||||||
Acquisition costs | — | (30 | ) | |||||||||
Legal settlements (4) | 1,113 | — | ||||||||||
Adjusted Same Store SG&A (1) | $ | 729,071 | $ | 718,875 | 1.4 | |||||||
SAME STORE TOTAL GROSS MARGIN %: | ||||||||||||
Unadjusted | 15.9 | 15.6 | ||||||||||
Adjusted (1) | 15.9 | 15.6 | ||||||||||
SAME STORE FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT): | ||||||||||||
Unadjusted | $ | 1,622 | $ | 1,588 | 2.1 | |||||||
Adjusted (1) | $ | 1,660 | $ | 1,588 | 4.5 | |||||||
SAME STORE SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 11.6 | 11.2 | ||||||||||
Adjusted (1) | 11.5 | 11.1 | ||||||||||
SAME STORE SG&A AS % GROSS PROFIT: | ||||||||||||
Unadjusted | 73.1 | 71.8 | ||||||||||
Adjusted (1) | 71.7 | 71.2 | ||||||||||
SAME STORE OPERATING MARGIN % | ||||||||||||
Unadjusted | 3.6 | 3.7 | ||||||||||
Adjusted (1), (3) | 4.0 | 4.0 | ||||||||||
(1) | See the section of this release entitled "Non-GAAP Financial Measures" for information regarding non-GAAP financial measures and certain selected items that the Company believes impact comparability of financial results between reporting periods. | |||||||||||
(2) | Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $9,526 for the three and nine months ended September 30, 2017, respectively, and $10,855 and $12,389 for the three and nine months ended September 30, 2016, respectively. | |||||||||||
(3) | Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $9,526 for the three and nine months ended September 30, 2017, respectively, and $10,793 and $12,327 for the three and nine months ended September 30, 2016, respectively. | |||||||||||
(4) | For the nine months ended September 30, 2017, the Company recognized a net pre-tax gain related to a settlement with an OEM of $1.8 million. |
Group 1 Automotive, Inc. | ||||||||||||
Reconciliation of Certain Non-GAAP Financial Measures - U.K. | ||||||||||||
(Unaudited) | ||||||||||||
(Dollars in thousands) | ||||||||||||
Nine Months Ended September 30, | ||||||||||||
2017 | 2016 | % Increase/(Decrease) | ||||||||||
SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 137,475 | $ | 119,154 | 15.4 | |||||||
Pre-tax adjustments: | ||||||||||||
Acquisition costs | (288 | ) | (561 | ) | ||||||||
Adjusted SG&A (1) | $ | 137,187 | $ | 118,593 | 15.7 | |||||||
SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 9.3 | 8.9 | ||||||||||
Adjusted (1) | 9.3 | 8.9 | ||||||||||
SG&A AS % OF GROSS PROFIT: | ||||||||||||
Unadjusted | 83.4 | 80.2 | ||||||||||
Adjusted (1) | 83.2 | 79.8 | ||||||||||
OPERATING MARGIN %: | ||||||||||||
Unadjusted | 1.5 | 1.8 | ||||||||||
Adjusted (1) | 1.5 | 1.9 | ||||||||||
PRETAX MARGIN %: | ||||||||||||
Unadjusted | 1.1 | 1.3 | ||||||||||
Adjusted (1) | 1.1 | 1.3 | ||||||||||
SAME STORE SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 113,338 | $ | 112,159 | 1.1 | |||||||
Pre-tax adjustments: | ||||||||||||
Acquisition costs | (288 | ) | (561 | ) | ||||||||
Adjusted Same Store SG&A (1) | $ | 113,050 | $ | 111,598 | 1.3 | |||||||
SAME STORE SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 8.9 | 8.7 | ||||||||||
Adjusted (1) | 8.9 | 8.6 | ||||||||||
SAME STORE SG&A AS % GROSS PROFIT: | ||||||||||||
Unadjusted | 80.0 | 77.9 | ||||||||||
Adjusted (1) | 79.8 | 77.5 | ||||||||||
SAME STORE OPERATING MARGIN % | ||||||||||||
Unadjusted | 1.9 | 2.1 | ||||||||||
Adjusted (1) | 1.9 | 2.1 | ||||||||||
(1) | See the section of this release entitled "Non-GAAP Financial Measures" for information regarding non-GAAP financial measures and certain selected items that the Company believes impact comparability of financial results between reporting periods. |
Group 1 Automotive, Inc. | ||||||||||||
Reconciliation of Certain Non-GAAP Financial Measures - Brazil | ||||||||||||
(Unaudited) | ||||||||||||
(Dollars in thousands) | ||||||||||||
Three Months Ended September 30, | ||||||||||||
2017 | 2016 | % Increase/(Decrease) | ||||||||||
SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 13,145 | $ | 12,896 | 1.9 | |||||||
Pre-tax adjustments: | ||||||||||||
Foreign transaction tax | — | (274 | ) | |||||||||
Adjusted SG&A (1) | $ | 13,145 | $ | 12,622 | 4.1 | |||||||
SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 11.0 | 11.5 | ||||||||||
Adjusted (1) | 11.0 | 11.2 | ||||||||||
SG&A AS % GROSS PROFIT: | ||||||||||||
Unadjusted | 92.2 | 103.6 | ||||||||||
Adjusted (1) | 92.2 | 101.4 | ||||||||||
OPERATING MARGIN % | ||||||||||||
Unadjusted | 0.6 | (0.6 | ) | |||||||||
Adjusted (1) | 0.6 | (0.4 | ) | |||||||||
PRETAX MARGIN %: | ||||||||||||
Unadjusted | 0.5 | (0.8 | ) | |||||||||
Adjusted (1) | 0.5 | (0.5 | ) | |||||||||
SAME STORE SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 12,746 | $ | 11,762 | 8.4 | |||||||
Pre-tax adjustments: | ||||||||||||
Foreign transaction tax | — | (274 | ) | |||||||||
Adjusted Same Store SG&A (1) | $ | 12,746 | $ | 11,488 | 11.0 | |||||||
SAME STORE SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 10.7 | 11.3 | ||||||||||
Adjusted (1) | 10.7 | 11.0 | ||||||||||
SAME STORE SG&A AS % GROSS PROFIT: | ||||||||||||
Unadjusted | 89.8 | 101.4 | ||||||||||
Adjusted (1) | 89.8 | 99.1 | ||||||||||
SAME STORE OPERATING MARGIN % | ||||||||||||
Unadjusted | 0.9 | (0.4 | ) | |||||||||
Adjusted (1) | 0.9 | (0.1 | ) |
Nine Months Ended September 30, | ||||||||||||
2017 | 2016 | % Increase/(Decrease) | ||||||||||
SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 37,295 | $ | 34,808 | 7.1 | |||||||
Pre-tax adjustments: | ||||||||||||
Gain (loss) on real estate and dealership transactions | — | (372 | ) | |||||||||
Foreign transaction tax | — | (274 | ) | |||||||||
Adjusted SG&A (1) | $ | 37,295 | $ | 34,162 | 9.2 | |||||||
SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 11.2 | 11.1 | ||||||||||
Adjusted (1) | 11.2 | 10.9 | ||||||||||
SG&A AS % OF GROSS PROFIT: | ||||||||||||
Unadjusted | 92.4 | 104.6 | ||||||||||
Adjusted (1) | 92.4 | 102.6 | ||||||||||
OPERATING MARGIN %: | ||||||||||||
Unadjusted | 0.6 | (0.9 | ) | |||||||||
Adjusted (1), (2) | 0.6 | (0.5 | ) | |||||||||
PRETAX MARGIN %: | ||||||||||||
Unadjusted | 0.4 | (1.0 | ) | |||||||||
Adjusted (1), (2) | 0.4 | (0.7 | ) | |||||||||
SAME STORE SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 34,693 | $ | 29,192 | 18.8 | |||||||
Pre-tax adjustments: | ||||||||||||
Foreign transaction tax | — | (274 | ) | |||||||||
Adjusted Same Store SG&A (1) | $ | 34,693 | $ | 28,918 | 20.0 | |||||||
SAME STORE SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 10.9 | 10.2 | ||||||||||
Adjusted (1) | 10.9 | 10.1 | ||||||||||
SAME STORE SG&A AS % GROSS PROFIT: | ||||||||||||
Unadjusted | 89.3 | 97.2 | ||||||||||
Adjusted (1) | 89.3 | 96.3 | ||||||||||
SAME STORE OPERATING MARGIN % | ||||||||||||
Unadjusted | 1.0 | — | ||||||||||
Adjusted (1) | 1.0 | 0.1 | ||||||||||
(1) | See the section of this release entitled "Non-GAAP Financial Measures" for information regarding non-GAAP financial measures and certain selected items that the Company believes impact comparability of financial results between reporting periods. | |||||||||||
(2) | Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $423 for the nine months ended September 30, 2016. |
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, | ||||||||||||
2017 | 2016 | % Increase/(Decrease) | ||||||||||
NET INCOME RECONCILIATION: | ||||||||||||
As reported | $ | 29,881 | $ | 35,366 | (15.5 | ) | ||||||
Adjustments: | ||||||||||||
Catastrophic events | ||||||||||||
Pre-tax | 14,699 | 450 | ||||||||||
Tax impact | (5,677 | ) | (169 | ) | ||||||||
(Gain) loss on real estate and dealership transactions | ||||||||||||
Pre-tax | 798 | (1,114 | ) | |||||||||
Tax impact | (301 | ) | 418 | |||||||||
Legal settlements | ||||||||||||
Pre-tax | 720 | — | ||||||||||
Tax impact | (270 | ) | — | |||||||||
Foreign transaction tax | ||||||||||||
Pre-tax | — | 274 | ||||||||||
Tax impact | — | — | ||||||||||
Non-cash asset impairment | ||||||||||||
Pre-tax | 9,526 | 10,793 | ||||||||||
Tax impact | (3,579 | ) | (4,047 | ) | ||||||||
Allowance for uncertain tax positions | ||||||||||||
Pre-tax | — | — | ||||||||||
Tax impact | 834 | — | ||||||||||
Adjusted net income (1) | $ | 46,631 | $ | 41,971 | 11.1 | |||||||
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION: | ||||||||||||
Adjusted net income (1) | $ | 46,631 | $ | 41,971 | 11.1 | |||||||
Less: Adjusted earnings allocated to participating securities | 1,603 | 1,695 | (5.4 | ) | ||||||||
Adjusted net income available to diluted common shares (1) | $ | 45,028 | $ | 40,276 | 11.8 | |||||||
DILUTED INCOME PER COMMON SHARE RECONCILIATION: | ||||||||||||
As reported | $ | 1.43 | $ | 1.65 | (13.3 | ) | ||||||
After-tax adjustments: | ||||||||||||
Catastrophic events | 0.44 | 0.01 | ||||||||||
(Gain) loss on real estate and dealership transactions | 0.02 | (0.03 | ) | |||||||||
Legal settlements | 0.02 | — | ||||||||||
Foreign transaction tax | — | 0.01 | ||||||||||
Non-cash asset impairment | 0.28 | 0.32 | ||||||||||
Allowance for uncertain tax positions | 0.04 | — | ||||||||||
Adjusted diluted income per share (1) | $ | 2.23 | $ | 1.96 | 13.8 | |||||||
FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION: | ||||||||||||
As reported | $ | 110,993 | $ | 108,710 | 2.1 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Finance, insurance and other revenue, net (1) | $ | 117,543 | $ | 108,710 | 8.1 |
TOTAL REVENUES RECONCILIATION: | ||||||||||||
As reported | $ | 3,012,292 | $ | 2,823,176 | 6.7 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Total Revenues (1) | $ | 3,018,842 | $ | 2,823,176 | 6.9 | |||||||
TOTAL GROSS PROFIT RECONCILIATION: | ||||||||||||
As reported | $ | 431,420 | $ | 406,668 | 6.1 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Total Gross Profit (1) | $ | 437,970 | $ | 406,668 | 7.7 | |||||||
SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 328,327 | $ | 299,006 | 9.8 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | (8,149 | ) | (450 | ) | ||||||||
Gain (loss) on real estate and dealership transactions | (798 | ) | 1,176 | |||||||||
Legal settlements | (720 | ) | — | |||||||||
Foreign transaction tax | — | (274 | ) | |||||||||
Adjusted SG&A (1) | $ | 318,660 | $ | 299,458 | 6.4 | |||||||
TOTAL GROSS MARGIN %: | ||||||||||||
Unadjusted | 14.3 | 14.4 | ||||||||||
Adjusted (1) | 14.5 | 14.4 | ||||||||||
FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT): | ||||||||||||
Unadjusted | $ | 1,343 | $ | 1,383 | (2.9 | ) | ||||||
Adjusted (1) | $ | 1,422 | $ | 1,383 | 2.8 | |||||||
SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 10.9 | 10.6 | ||||||||||
Adjusted (1) | 10.6 | 10.6 | ||||||||||
SG&A AS % GROSS PROFIT: | ||||||||||||
Unadjusted | 76.1 | 73.5 | ||||||||||
Adjusted (1) | 72.8 | 73.6 | ||||||||||
OPERATING MARGIN % | ||||||||||||
Unadjusted | 2.6 | 3.0 | ||||||||||
Adjusted (1), (2) | 3.5 | 3.3 | ||||||||||
PRETAX MARGIN %: | ||||||||||||
Unadjusted | 1.6 | 2.0 | ||||||||||
Adjusted (1), (2) | 2.4 | 2.3 |
SAME STORE FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION: | ||||||||||||
As reported | $ | 106,839 | $ | 106,914 | (0.1 | ) | ||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Finance, insurance and other revenue, net (1) | $ | 113,389 | $ | 106,914 | 6.1 | |||||||
SAME STORE TOTAL REVENUES RECONCILIATION: | ||||||||||||
As reported | $ | 2,868,029 | $ | 2,781,492 | 3.1 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Total Revenues (1) | $ | 2,874,579 | $ | 2,781,492 | 3.3 | |||||||
SAME STORE TOTAL GROSS PROFIT RECONCILIATION: | ||||||||||||
As reported | $ | 414,979 | $ | 401,059 | 3.5 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Total Gross Profit (1) | $ | 421,529 | $ | 401,059 | 5.1 | |||||||
SAME STORE SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 313,146 | $ | 293,749 | 6.6 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | (8,149 | ) | (450 | ) | ||||||||
Loss on real estate and dealership transactions | (798 | ) | — | |||||||||
Legal settlements | (720 | ) | — | |||||||||
Foreign transaction tax | — | (274 | ) | |||||||||
Adjusted Same Store SG&A (1) | $ | 303,479 | $ | 293,025 | 3.6 | |||||||
SAME STORE TOTAL GROSS MARGIN %: | ||||||||||||
Unadjusted | 14.5 | 14.4 | ||||||||||
Adjusted (1) | 14.7 | 14.4 | ||||||||||
SAME STORE FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT): | ||||||||||||
Unadjusted | $ | 1,372 | $ | 1,390 | (1.3 | ) | ||||||
Adjusted (1) | $ | 1,456 | $ | 1,390 | 4.7 | |||||||
SAME STORE SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 10.9 | 10.6 | ||||||||||
Adjusted (1) | 10.6 | 10.5 | ||||||||||
SAME STORE SG&A AS % GROSS PROFIT: | ||||||||||||
Unadjusted | 75.5 | 73.2 | ||||||||||
Adjusted (1) | 72.0 | 73.1 | ||||||||||
SAME STORE OPERATING MARGIN % | ||||||||||||
Unadjusted | 2.7 | 3.0 | ||||||||||
Adjusted (1), (3) | 3.6 | 3.4 | ||||||||||
Nine Months Ended September 30, | ||||||||||||
2017 | 2016 | % Increase/ (Decrease) | ||||||||||
NET INCOME RECONCILIATION: | ||||||||||||
As reported | $ | 102,953 | $ | 116,237 | (11.4 | ) | ||||||
Adjustments: | ||||||||||||
Catastrophic events | ||||||||||||
Pre-tax | 15,341 | 5,873 | ||||||||||
Tax impact | (5,926 | ) | (2,207 | ) | ||||||||
(Gain) loss on real estate and dealership transactions | — | — | ||||||||||
Pre-tax | 798 | (1,000 | ) | |||||||||
Tax impact | (301 | ) | 672 | |||||||||
Acquisition costs | — | — | ||||||||||
Pre-tax | 288 | 591 | ||||||||||
Tax impact | — | (11 | ) | |||||||||
Legal settlements (4) | — | — | ||||||||||
Pre-tax | (1,113 | ) | — | |||||||||
Tax impact | 426 | — | ||||||||||
Foreign transaction tax | — | — | ||||||||||
Pre-tax | — | 274 | ||||||||||
Tax impact | — | — | ||||||||||
Non-cash asset impairment | — | — | ||||||||||
Pre-tax | 9,526 | 12,327 | ||||||||||
Tax impact | (3,579 | ) | (4,634 | ) | ||||||||
Allowance for uncertain tax positions | — | — | ||||||||||
Pre-tax | — | — | ||||||||||
Tax impact | 834 | — | ||||||||||
Foreign deferred income tax benefit | — | — | ||||||||||
Pre-tax | — | — | ||||||||||
Tax impact | — | (1,686 | ) | |||||||||
Adjusted net income (1) | $ | 119,247 | $ | 126,436 | (5.7 | ) | ||||||
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION: | ||||||||||||
Adjusted net income (1) | $ | 119,247 | $ | 126,436 | (5.7 | ) | ||||||
Less: Adjusted earnings allocated to participating securities | 4,248 | 5,061 | (16.1 | ) | ||||||||
Adjusted net income available to diluted common shares (1) | $ | 114,999 | $ | 121,375 | (5.3 | ) | ||||||
DILUTED INCOME PER COMMON SHARE RECONCILIATION: | ||||||||||||
As reported | $ | 4.85 | $ | 5.22 | (7.1 | ) | ||||||
After-tax adjustments: | ||||||||||||
Catastrophic events | 0.44 | 0.16 | ||||||||||
(Gain) loss on real estate and dealership transactions | 0.03 | (0.01 | ) | |||||||||
Acquisition costs including related tax impact | 0.02 | 0.02 | ||||||||||
Legal settlements | (0.03 | ) | — | |||||||||
Foreign transaction tax | — | 0.01 | ||||||||||
Non-cash asset impairment | 0.27 | 0.35 | ||||||||||
Allowance for uncertain tax positions | 0.04 | — | ||||||||||
Foreign deferred income tax benefit | — | (0.07 | ) | |||||||||
Adjusted diluted income per share (1) | $ | 5.62 | $ | 5.68 | (1.1 | ) | ||||||
FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION: |
As reported | $ | 314,297 | $ | 316,419 | (0.7 | ) | ||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Finance, insurance and other revenue, net (1) | $ | 320,487 | $ | 316,419 | 1.4 | |||||||
TOTAL REVENUES RECONCILIATION: | ||||||||||||
As reported | $ | 8,203,316 | $ | 8,213,980 | (0.1 | ) | ||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Total Revenues (1) | $ | 8,209,866 | $ | 8,213,980 | (0.1 | ) | ||||||
TOTAL GROSS PROFIT RECONCILIATION: | ||||||||||||
As reported | $ | 1,219,834 | $ | 1,205,888 | 1.2 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Total Gross Profit (1) | $ | 1,226,384 | $ | 1,205,888 | 1.7 | |||||||
SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 916,674 | $ | 891,692 | 2.8 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | (8,792 | ) | (5,873 | ) | ||||||||
Gain (loss) on real estate and dealership transactions | (798 | ) | 1,485 | |||||||||
Acquisition costs | (288 | ) | (591 | ) | ||||||||
Legal settlements | 1,113 | — | ||||||||||
Foreign transaction tax | — | (274 | ) | |||||||||
Adjusted SG&A (1) | $ | 907,909 | $ | 886,439 | 2.4 | |||||||
TOTAL GROSS MARGIN %: | ||||||||||||
Unadjusted | 14.9 | 14.7 | ||||||||||
Adjusted (1) | 14.9 | 14.7 | ||||||||||
FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT): | ||||||||||||
Unadjusted | $ | 1,394 | $ | 1,383 | 0.8 | |||||||
Adjusted (1) | $ | 1,423 | $ | 1,383 | 2.9 | |||||||
SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 11.2 | 10.9 | ||||||||||
Adjusted (1) | 11.1 | 10.8 | ||||||||||
SG&A AS % OF GROSS PROFIT: | ||||||||||||
Unadjusted | 75.1 | 73.9 | ||||||||||
Adjusted (1) | 74.0 | 73.5 | ||||||||||
OPERATING MARGIN %: | ||||||||||||
Unadjusted | 3.1 | 3.2 | ||||||||||
Adjusted (1), (2) | 3.4 | 3.4 | ||||||||||
PRETAX MARGIN %: | ||||||||||||
Unadjusted | 2.0 | 2.2 | ||||||||||
Adjusted (1), (2) | 2.3 | 2.4 | ||||||||||
SAME STORE FINANCE, INSURANCE AND OTHER REVENUE, NET RECONCILIATION: | ||||||||||||
As reported | $ | 306,875 | $ | 310,435 | (1.1 | ) | ||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Finance, insurance and other revenue, net (1) | $ | 313,425 | $ | 310,435 | 1.0 | |||||||
SAME STORE TOTAL REVENUES RECONCILIATION: | ||||||||||||
As reported | $ | 7,950,296 | $ | 8,048,071 | (1.2 | ) |
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Total Revenues (1) | $ | 7,956,846 | $ | 8,048,071 | (1.1 | ) | ||||||
SAME STORE TOTAL GROSS PROFIT RECONCILIATION: | ||||||||||||
As reported | $ | 1,190,186 | $ | 1,184,186 | 0.5 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | 6,550 | — | ||||||||||
Adjusted Total Gross Profit (1) | $ | 1,196,736 | $ | 1,184,186 | 1.1 | |||||||
SAME STORE SG&A RECONCILIATION: | ||||||||||||
As reported | $ | 885,579 | $ | 866,513 | 2.2 | |||||||
Pre-tax adjustments: | ||||||||||||
Catastrophic events | (8,792 | ) | (5,873 | ) | ||||||||
Loss on real estate and dealership transactions | (798 | ) | (384 | ) | ||||||||
Acquisition costs | (288 | ) | (591 | ) | ||||||||
Legal settlements | 1,113 | — | ||||||||||
Foreign transaction tax | — | (274 | ) | |||||||||
Adjusted Same Store SG&A (1) | $ | 876,814 | $ | 859,391 | 2.0 | |||||||
SAME STORE TOTAL GROSS MARGIN %: | ||||||||||||
Unadjusted | 15.0 | 14.7 | ||||||||||
Adjusted (1) | 15.0 | 14.7 | ||||||||||
SAME STORE FINANCE, INSURANCE AND OTHER, NET (PER RETAIL UNIT): | ||||||||||||
Unadjusted | $ | 1,415 | $ | 1,395 | 1.4 | |||||||
Adjusted (1) | $ | 1,445 | $ | 1,395 | 3.6 | |||||||
SAME STORE SG&A AS % REVENUES: | ||||||||||||
Unadjusted | 11.1 | 10.8 | ||||||||||
Adjusted (1) | 11.0 | 10.7 | ||||||||||
SAME STORE SG&A AS % GROSS PROFIT: | ||||||||||||
Unadjusted | 74.4 | 73.2 | ||||||||||
Adjusted (1) | 73.3 | 72.6 | ||||||||||
SAME STORE OPERATING MARGIN % | ||||||||||||
Unadjusted | 3.2 | 3.3 | ||||||||||
Adjusted (1), (3) | 3.5 | 3.6 | ||||||||||
(1) | See the section of this release entitled "Non-GAAP Financial Measures" for information regarding non-GAAP financial measures and certain selected items that the Company believes impact comparability of financial results between reporting periods. | |||||||||||
(2) | Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $9,526 for the three and nine months ended September 30, 2017 and $10,855 and $12,812 for the three and nine months ended September 30, 2016, respectively. | |||||||||||
(3) | Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $9,526 for the three and nine months ended September 30, 2017 and $10,794 and $12,327 for the three and nine months ended September 30, 2016, respectively. | |||||||||||
(4) | For the nine months ended September 30, 2017, the Company recognized a net pre-tax gain related to a settlement with an OEM of $1.8 million. |
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