HOUSTON, Oct. 24, 2013 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), an international, Fortune 500 automotive retailer, today reported 2013 third quarter adjusted net income of $32.9 million and diluted earnings per common share of $1.20 for the period ended Sept. 30, 2013. Adjusted net income increased 4.9 percent from the comparable, adjusted prior-year period.
Year-to-date 2013 adjusted net income increased 20.9 percent. Adjusted diluted earnings per common share were $3.88.
"Group 1 Automotive continued to demonstrate strong top line growth of over 18 percent in the third quarter. However, margin pressures in the U.S. market and economic pressures in the Brazilian market limited our adjusted earnings growth to 5 percent. We are actively pursuing cost reduction opportunities to address both of these issues," said Earl J. Hesterberg, Group 1's president and chief executive officer. "We continue to see excellent growth prospects for the U.S. auto industry in the year ahead."
Consolidated Results for Third Quarter 2013 (year-over-year comparable basis)
- Total revenue increased 18.4 percent to $2.3 billion.
- New vehicle revenues increased 21.5 percent on 22.5 percent higher unit sales. New vehicle gross profit increased 10.1 percent to $73.3 million as lower margins, down $195 per unit, partially offset the revenue growth.
- U.K. same store revenue increased 14.4 percent driven by 17.8 percent growth in new vehicle unit sales.
- Retail used vehicle revenues increased 14.6 percent on increased unit sales of 16.2 percent. Gross profit improved 9.9 percent to $41.5 million as lower margins, down $90 per unit, partially offset the revenue growth.
- Parts and service gross profit increased 13.2 percent on revenue growth of 13.5 percent. Same store parts and service revenue increased 8.0 percent.
- Same store Finance and Insurance gross profit per retail unit increased 7.1 percent to $1,338 per unit.
- SG&A expenses (adjusted) as a percent of gross profit increased 90 basis points, to 75.1 percent, as lower new and used vehicle margins negatively impacted leverage.
- Fully diluted common shares outstanding averaged 26.3 million shares, up 1.4 million from the second quarter, with the increase primarily explained by the dilutive effect of higher share prices on share count derived from the Company's outstanding convertible securities.
Segment Results for Third Quarter 2013 (year-over-year comparable basis)
Group 1's U.S. revenues were $1.9 billion, an increase of 4.1 percent. The revenue growth was primarily explained by unit sales increases of 2.8 percent in new vehicles and 5.3 percent in retail used vehicles, as well as an increase of 3.3 percent in parts and service revenue. The revenue drove gross profit growth of 3.2 percent, reflecting the higher new and used retail volumes, expanded parts and service margins of 60 basis points, and an F&I increase of 13.3 percent, or $115, to $1,375 per retail unit. As the Company has rebalanced its U.S. dealership portfolio over the past 12 months and disposed of a net of 6 franchises representing annualized revenues of approximately $154.0 million (excluding the Honda franchise acquired in Tulsa, Oklahoma on September 30, 2013), consolidated results are not fully reflective of underlying same store performance in the U.S.
On a comparable basis, SG&A expenses as a percent of gross profit remained flat at 74.0 percent, operating margin was 3.4 percent and pretax margin was 2.5 percent. Group 1's U.S. operations accounted for 80.7 percent of total revenues, 85.1 percent of total gross profit and 90.0 percent of the Company's adjusted pretax income.
Group 1's U.K. operations accounted for 10.0 percent of total revenues, 7.7 percent of total gross profit, and 8.6 percent of the Company's adjusted pretax income. Reflecting significant acquisition activity over the past year, total revenue increased 44.7 percent to $234.9 million, and gross profit increased 29.7 percent. Revenue growth was primarily driven by 67.5 percent and 86.1 percent increases in new and used vehicle retail unit sales, respectively.
On a comparable basis, SG&A expenses as a percent of gross profit increased 20 basis points to 77.0 percent.
Group 1's Brazil operations accounted for 9.2 percent of total revenues, 7.2 percent of total gross profit and 1.4 percent of the Company's adjusted pretax income. Gross profit was $23.7 million on revenues of $215.9 million. New vehicle sales were the primary revenue contributor at 73.5 percent, while new vehicles and parts and service were the primary gross profit contributors at 48.0 percent and 33.8 percent, respectively.
SG&A expenses as a percent of gross profit was at 85.6 percent, operating margin was 1.4 percent and pretax margin was 0.3 percent.
Corporate Development
On September 30, 2013, Group 1 purchased a Honda franchise in Tulsa, Oklahoma that is estimated to generate $60.0 million in annual revenues.
Year to date, Group 1 has disposed of 7 franchises that generated $318.9 million of annual revenues and acquired 29 franchises worldwide that are expected to generate approximately $967.0 million in annual revenues.
Share Repurchase Authorization
Group 1's board of directors increased the Company's common stock share repurchase authorization by 50 percent, to $75.0 million. Purchases may be made from time to time, based on market conditions, legal requirements and other corporate considerations, in the open market or in privately negotiated transactions.
The Company expects that any repurchase of shares will be funded by cash from operations. Repurchased shares will be held in treasury.
Third Quarter Earnings Conference Call Details
Group 1's senior management will host a conference call today at 10 a.m. ET to discuss the third quarter financial results and the Company's outlook and strategy.
The conference call will be simulcast live on the Internet at www.group1auto.com, then click on 'Investor Relations' and then 'Events' or through this link: http://www.group1corp.com/news/events.aspx. A webcast replay will be available for 30 days.
The conference call will also be available live by dialing in 10 minutes prior to the start of the call at:
|
Domestic:
|
1-877-300-8521
|
|
International:
|
1-412-317-6026
|
|
Conference ID:
|
10035201
|
A telephonic replay will be available following the call through October 30, 2013 at 11:59 p.m. ET by dialing:
|
Domestic:
|
1-877-870-5176
|
|
International:
|
1-858-384-5517
|
|
Replay Pin:
|
10035201
|
About Group 1 Automotive, Inc.
Group 1 owns and operates 141 automotive dealerships, 179 franchises, and 35 collision centers in the United States, the United Kingdom and Brazil that offer 33 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing, service and insurance contracts; provides automotive maintenance and repair services; and sells vehicle parts.
Group 1 Automotive can be reached on the Internet at www.group1auto.com.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements related to future, not past, events and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. In this context, the forward-looking statements often include statements regarding our goals, plans, projections and guidance regarding our financial position, results of operations, market position, pending and potential future acquisitions and business strategy, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should," "foresee," "may" or "will" and similar expressions. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Any such forward-looking statements are not assurances of future performance and involve risks and uncertainties that may cause actual results to differ materially from those set forth in the statements. These risks and uncertainties include, among other things, (a) general economic and business conditions, (b) the level of manufacturer incentives, (c) the future regulatory environment, (d) our ability to obtain an inventory of desirable new and used vehicles, (e) our relationship with our automobile manufacturers and the willingness of manufacturers to approve future acquisitions, (f) our cost of financing and the availability of credit for consumers, (g) our ability to complete acquisitions and dispositions and the risks associated therewith, (h) foreign exchange controls and currency fluctuations, and (i) our ability to retain key personnel. For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with the SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.
Investor contacts:
Sheila Roth
Manager, Investor Relations
Group 1 Automotive, Inc.
713-647-5741 | sroth@group1auto.com
Media contacts:
Pete DeLongchamps
V.P. Manufacturer Relations and Public Affairs
Group 1 Automotive, Inc.
713-647-5770 | pdelongchamps@group1auto.com
or
Clint Woods
Pierpont Communications, Inc.
713-627-2223 | cwoods@piercom.com
|
Group 1 Automotive, Inc.
|
|
Consolidated Statements of Operations
|
|
(Unaudited)
|
|
(In thousands, except per share amounts)
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
2013
|
|
2012
|
|
% Change
|
|
REVENUES:
|
|
|
|
|
|
|
New vehicle retail sales
|
$ 1,386,667
|
|
$ 1,141,286
|
|
21.5
|
|
Used vehicle retail sales
|
529,828
|
|
462,395
|
|
14.6
|
|
Used vehicle wholesale sales
|
85,800
|
|
78,424
|
|
9.4
|
|
Parts and service
|
255,316
|
|
224,990
|
|
13.5
|
|
Finance and insurance
|
82,536
|
|
69,477
|
|
18.8
|
|
Total revenues
|
2,340,147
|
|
1,976,572
|
|
18.4
|
|
|
|
|
|
|
|
COST OF SALES:
|
|
|
|
|
|
|
New vehicle retail sales
|
1,313,372
|
|
1,074,736
|
|
22.2
|
|
Used vehicle retail sales
|
488,346
|
|
424,663
|
|
15.0
|
|
Used vehicle wholesale sales
|
87,334
|
|
79,067
|
|
10.5
|
|
Parts and service
|
121,633
|
|
106,875
|
|
13.8
|
|
Total cost of sales
|
2,010,685
|
|
1,685,341
|
|
19.3
|
|
|
|
|
|
|
|
GROSS PROFIT
|
329,462
|
|
291,231
|
|
13.1
|
|
|
|
|
|
|
|
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
|
246,863
|
|
216,082
|
|
14.2
|
|
|
|
|
|
|
|
DEPRECIATION AND AMORTIZATION EXPENSE
|
9,093
|
|
8,096
|
|
12.3
|
|
|
|
|
|
|
|
ASSET IMPAIRMENTS
|
565
|
|
-
|
|
100.0
|
|
|
|
|
|
|
|
OPERATING INCOME
|
72,941
|
|
67,053
|
|
8.8
|
|
|
|
|
|
|
|
OTHER EXPENSE:
|
|
|
|
|
|
|
Floorplan interest expense
|
(10,690)
|
|
(7,942)
|
|
34.6
|
|
Other interest expense, net
|
(9,971)
|
|
(9,619)
|
|
3.7
|
|
INCOME BEFORE INCOME TAXES
|
52,280
|
|
49,492
|
|
5.6
|
|
|
|
|
|
|
|
PROVISION FOR INCOME TAXES
|
(19,515)
|
|
(18,157)
|
|
7.5
|
|
|
|
|
|
|
|
NET INCOME
|
$ 32,765
|
|
$ 31,335
|
|
4.6
|
|
Earnings allocated to participating securities
|
(1,320)
|
|
(1,641)
|
|
(19.6)
|
|
Earnings available to diluted common shares
|
$ 31,445
|
|
$ 29,694
|
|
5.9
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER SHARE
|
$ 1.19
|
|
$ 1.32
|
|
(9.8)
|
|
|
|
|
|
|
|
Weighted average dilutive common shares outstanding
|
26,342
|
|
22,458
|
|
17.3
|
|
Weighted average participating securities
|
1,100
|
|
1,245
|
|
(11.6)
|
|
Total weighted average shares outstanding
|
27,442
|
|
23,703
|
|
15.8
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
2013
|
|
2012
|
|
% Change
|
|
REVENUES:
|
|
|
|
|
|
|
New vehicle retail sales
|
$ 3,873,121
|
|
$ 3,134,591
|
|
23.6
|
|
Used vehicle retail sales
|
1,536,031
|
|
1,333,603
|
|
15.2
|
|
Used vehicle wholesale sales
|
243,667
|
|
218,415
|
|
11.6
|
|
Parts and service
|
753,776
|
|
658,404
|
|
14.5
|
|
Finance and insurance
|
232,494
|
|
192,130
|
|
21.0
|
|
Total revenues
|
6,639,089
|
|
5,537,143
|
|
19.9
|
|
|
|
|
|
|
|
COST OF SALES:
|
|
|
|
|
|
|
New vehicle retail sales
|
3,656,825
|
|
2,951,379
|
|
23.9
|
|
Used vehicle retail sales
|
1,410,768
|
|
1,220,628
|
|
15.6
|
|
Used vehicle wholesale sales
|
242,267
|
|
216,031
|
|
12.1
|
|
Parts and service
|
358,004
|
|
312,106
|
|
14.7
|
|
Total cost of sales
|
5,667,864
|
|
4,700,144
|
|
20.6
|
|
|
|
|
|
|
|
GROSS PROFIT
|
971,225
|
|
836,999
|
|
16.0
|
|
|
|
|
|
|
|
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
|
731,455
|
|
629,521
|
|
16.2
|
|
|
|
|
|
|
|
DEPRECIATION AND AMORTIZATION EXPENSE
|
26,390
|
|
23,074
|
|
14.4
|
|
|
|
|
|
|
|
ASSET IMPAIRMENTS
|
1,174
|
|
288
|
|
307.6
|
|
|
|
|
|
|
|
OPERATING INCOME
|
212,206
|
|
184,116
|
|
15.3
|
|
|
|
|
|
|
|
OTHER EXPENSE:
|
|
|
|
|
|
|
Floorplan interest expense
|
(30,927)
|
|
(23,424)
|
|
32.0
|
|
Other interest expense, net
|
(28,783)
|
|
(27,849)
|
|
3.4
|
|
Other expense, net
|
(789)
|
|
-
|
|
100.0
|
|
INCOME BEFORE INCOME TAXES
|
151,707
|
|
132,843
|
|
14.2
|
|
|
|
|
|
|
|
PROVISION FOR INCOME TAXES
|
(59,436)
|
|
(49,766)
|
|
19.4
|
|
|
|
|
|
|
|
NET INCOME
|
$ 92,271
|
|
$ 83,077
|
|
11.1
|
|
Earnings allocated to participating securities
|
(3,843)
|
|
(4,373)
|
|
(12.1)
|
|
Earnings available to diluted common shares
|
$ 88,428
|
|
$ 78,704
|
|
12.4
|
|
DILUTED EARNINGS PER SHARE
|
$ 3.52
|
|
$ 3.50
|
|
0.6
|
|
|
|
|
|
|
|
Weighted average dilutive common shares outstanding
|
25,153
|
|
22,501
|
|
11.8
|
|
Weighted average participating securities
|
1,095
|
|
1,257
|
|
(12.9)
|
|
Total weighted average shares outstanding
|
26,248
|
|
23,758
|
|
10.5
|
|
Group 1 Automotive, Inc.
|
|
Consolidated Balance Sheets
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
|
|
2013
|
|
2012
|
|
% Change
|
|
ASSETS:
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$ 26,278
|
|
$ 4,650
|
|
465.1
|
|
Contracts in transit and vehicle receivables, net
|
|
160,554
|
|
204,396
|
|
(21.4)
|
|
Accounts and notes receivable, net
|
|
123,376
|
|
111,228
|
|
10.9
|
|
Inventories, net
|
|
1,351,719
|
|
1,194,288
|
|
13.2
|
|
Deferred income taxes
|
|
22,273
|
|
19,750
|
|
12.8
|
|
Prepaid expenses and other current assets
|
|
23,775
|
|
31,869
|
|
(25.4)
|
|
Total current assets
|
|
1,707,975
|
|
1,566,181
|
|
9.1
|
|
PROPERTY AND EQUIPMENT, net
|
|
716,514
|
|
667,768
|
|
7.3
|
|
GOODWILL AND INTANGIBLE FRANCHISE RIGHTS
|
|
969,677
|
|
778,442
|
|
24.6
|
|
OTHER ASSETS
|
|
15,742
|
|
10,624
|
|
48.2
|
|
Total assets
|
|
$ 3,409,908
|
|
$ 3,023,015
|
|
12.8
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
Floorplan notes payable - credit facility and other
|
|
$ 960,871
|
|
$ 968,959
|
|
(0.8)
|
|
Offset account related to floorplan notes payable - credit facility
|
|
(47,709)
|
|
(112,261)
|
|
(57.5)
|
|
Floorplan notes payable - manufacturer affiliates
|
|
308,869
|
|
211,965
|
|
45.7
|
|
Current maturities of long-term debt and short-term financing
|
|
27,010
|
|
31,358
|
|
(13.9)
|
|
Accounts payable
|
|
201,699
|
|
167,439
|
|
20.5
|
|
Accrued expenses
|
|
133,777
|
|
128,118
|
|
4.4
|
|
Total current liabilities
|
|
1,584,517
|
|
1,395,578
|
|
13.5
|
|
2.25% CONVERTIBLE SENIOR NOTES (aggregate principal of $182,753 at September 30, 2013 and December 31, 2012)
|
|
158,283
|
|
152,363
|
|
3.9
|
|
3.00% CONVERTIBLE SENIOR NOTES (aggregate principal of $115,000 at September 30, 2013 and December 31, 2012)
|
|
83,377
|
|
80,706
|
|
3.3
|
|
MORTGAGE FACILITY, net of current maturities
|
|
46,046
|
|
53,643
|
|
(14.2)
|
|
OTHER REAL ESTATE RELATED AND LONG-TERM DEBT, net of current maturities
|
|
228,271
|
|
232,285
|
|
(1.7)
|
|
CAPITAL LEASE OBLIGATIONS RELATED TO REAL ESTATE, net of current maturities
|
|
44,450
|
|
36,019
|
|
23.4
|
|
DEFERRED INCOME TAXES
|
|
136,664
|
|
94,130
|
|
45.2
|
|
LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES
|
|
29,184
|
|
43,089
|
|
(32.3)
|
|
OTHER LIABILITIES
|
|
46,200
|
|
42,413
|
|
8.9
|
|
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
|
|
TEMPORARY EQUITY - REDEEMABLE EQUITY PORTION OF THE 3.00% CONVERTIBLE SENIOR NOTES
|
|
29,974
|
|
32,505
|
|
(7.8)
|
|
STOCKHOLDERS' EQUITY:
|
|
|
|
|
|
|
|
Common stock
|
|
259
|
|
258
|
|
0.4
|
|
Additional paid-in capital
|
|
369,198
|
|
332,836
|
|
10.9
|
|
Retained earnings
|
|
758,498
|
|
677,864
|
|
11.9
|
|
Accumulated other comprehensive loss
|
|
(46,345)
|
|
(33,057)
|
|
40.2
|
|
Treasury stock
|
|
(58,668)
|
|
(117,617)
|
|
(50.1)
|
|
Total stockholders' equity
|
|
1,022,942
|
|
860,284
|
|
18.9
|
|
Total liabilities and stockholders' equity
|
|
$ 3,409,908
|
|
$ 3,023,015
|
|
12.8
|
|
Group 1 Automotive, Inc.
|
|
Additional Information - Consolidated
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2013 (%)
|
|
2012 (%)
|
|
|
2013 (%)
|
|
2012 (%)
|
|
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
|
|
|
|
|
|
|
|
|
|
|
Region
|
Geographic Market
|
|
|
|
|
|
|
|
|
|
|
East
|
Massachusetts
|
|
5.5
|
|
9.6
|
|
|
5.9
|
|
10.0
|
|
New Jersey
|
|
4.1
|
|
5.0
|
|
|
4.2
|
|
5.0
|
|
Georgia
|
|
3.3
|
|
3.8
|
|
|
3.6
|
|
3.5
|
|
New Hampshire
|
|
2.6
|
|
2.8
|
|
|
2.4
|
|
2.9
|
|
New York
|
|
2.4
|
|
2.5
|
|
|
2.7
|
|
3.0
|
|
Louisiana
|
|
2.1
|
|
2.1
|
|
|
2.3
|
|
2.5
|
|
Mississippi
|
|
1.6
|
|
1.8
|
|
|
1.6
|
|
2.0
|
|
South Carolina
|
|
1.5
|
|
1.7
|
|
|
1.5
|
|
1.8
|
|
Florida
|
|
1.3
|
|
1.7
|
|
|
1.3
|
|
1.2
|
|
Alabama
|
|
0.8
|
|
0.9
|
|
|
0.8
|
|
1.0
|
|
Maryland
|
|
0.6
|
|
0.6
|
|
|
0.6
|
|
0.6
|
|
|
|
25.8
|
|
32.5
|
|
|
26.9
|
|
33.5
|
|
|
|
|
|
|
|
|
|
|
|
|
West
|
Texas
|
|
32.7
|
|
36.2
|
|
|
32.7
|
|
36.7
|
|
California
|
|
8.7
|
|
14.5
|
|
|
10.7
|
|
14.5
|
|
Oklahoma
|
|
8.0
|
|
8.0
|
|
|
7.8
|
|
7.8
|
|
Kansas
|
|
2.5
|
|
1.4
|
|
|
2.5
|
|
1.4
|
|
|
|
51.9
|
|
60.1
|
|
|
53.7
|
|
60.4
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
Brazil
|
|
12.1
|
|
-
|
|
|
10.2
|
|
-
|
|
United Kingdom
|
|
10.2
|
|
7.4
|
|
|
9.2
|
|
6.1
|
|
|
|
100.0
|
|
100.0
|
|
|
100.0
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
NEW VEHICLE UNIT SALES BRAND MIX:
|
|
|
|
|
|
|
|
|
|
|
Toyota/Scion/Lexus
|
|
26.9
|
|
30.8
|
|
|
27.0
|
|
30.9
|
|
Ford/Lincoln
|
|
|
12.3
|
|
8.8
|
|
|
11.8
|
|
9.2
|
|
Honda/Acura
|
|
|
11.6
|
|
11.1
|
|
|
12.1
|
|
11.2
|
|
BMW/MINI
|
|
|
11.1
|
|
10.1
|
|
|
10.7
|
|
10.7
|
|
Nissan/Infiniti
|
|
|
9.8
|
|
12.0
|
|
|
10.2
|
|
11.9
|
|
Volkswagen/Audi/Porsche
|
|
6.6
|
|
8.3
|
|
|
6.5
|
|
6.5
|
|
Hyundai/Kia
|
|
|
5.0
|
|
3.0
|
|
|
4.7
|
|
2.9
|
|
Chevrolet/GMC/Buick/Cadillac
|
|
4.6
|
|
5.5
|
|
|
4.8
|
|
5.8
|
|
Chrysler/Dodge/Jeep/RAM
|
|
3.9
|
|
4.3
|
|
|
4.0
|
|
4.4
|
|
Mercedes Benz/smart/Sprinter
|
|
3.8
|
|
4.3
|
|
|
4.2
|
|
4.6
|
|
Other
|
|
|
4.4
|
|
1.8
|
|
|
4.0
|
|
1.9
|
|
|
|
100.0
|
|
100.0
|
|
|
100.0
|
|
100.0
|
|
Group 1 Automotive, Inc.
|
|
Additional Information - U.S.
|
|
(Unaudited)
|
|
(Dollars in thousands, except per unit amounts)
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
2013
|
|
2012
|
|
% Change
|
|
REVENUES:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$ 1,091,221
|
|
$ 1,048,894
|
|
4.0
|
|
Used vehicle retail sales
|
|
443,716
|
|
423,277
|
|
4.8
|
|
Used vehicle wholesale sales
|
|
59,833
|
|
63,337
|
|
(5.5)
|
|
Total used
|
|
503,549
|
|
486,614
|
|
3.5
|
|
Parts and service
|
|
218,880
|
|
211,835
|
|
3.3
|
|
Finance and insurance
|
|
75,728
|
|
66,843
|
|
13.3
|
|
Total
|
|
$ 1,889,378
|
|
$ 1,814,186
|
|
4.1
|
|
|
|
|
|
|
|
|
GROSS MARGIN %:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
5.0
|
|
5.7
|
|
|
|
Used vehicle retail sales
|
|
8.1
|
|
8.3
|
|
|
|
Used vehicle wholesale sales
|
|
(2.3)
|
|
(1.0)
|
|
|
|
Total used
|
|
6.9
|
|
7.0
|
|
|
|
Parts and service
|
|
52.9
|
|
52.3
|
|
|
|
Finance and insurance
|
|
100.0
|
|
100.0
|
|
|
|
Total
|
|
14.8
|
|
15.0
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$ 54,086
|
|
$ 59,662
|
|
(9.3)
|
|
Used vehicle retail sales
|
|
35,937
|
|
34,937
|
|
2.9
|
|
Used vehicle wholesale sales
|
|
(1,373)
|
|
(636)
|
|
115.9
|
|
Total used
|
|
34,564
|
|
34,301
|
|
0.8
|
|
Parts and service
|
|
115,887
|
|
110,756
|
|
4.6
|
|
Finance and insurance
|
|
75,728
|
|
66,843
|
|
13.3
|
|
Total
|
|
$ 280,265
|
|
$ 271,562
|
|
3.2
|
|
|
|
|
|
|
|
|
UNITS SOLD:
|
|
|
|
|
|
|
|
Retail new vehicles sold
|
|
32,866
|
|
31,962
|
|
2.8
|
|
Retail used vehicles sold
|
|
22,206
|
|
21,084
|
|
5.3
|
|
Wholesale used vehicles sold
|
|
10,455
|
|
10,540
|
|
(0.8)
|
|
Total used
|
|
32,661
|
|
31,624
|
|
3.3
|
|
|
|
|
|
|
|
|
AVERAGE RETAIL SALES PRICE:
|
|
|
|
|
|
|
New vehicle retail
|
|
$ 33,202
|
|
$ 32,817
|
|
1.2
|
|
Used vehicle retail
|
|
$ 19,982
|
|
$ 20,076
|
|
(0.5)
|
|
|
|
|
|
|
|
|
GROSS PROFIT PER UNIT SOLD:
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$ 1,646
|
|
$ 1,867
|
|
(11.8)
|
|
Used vehicle retail sales
|
|
1,618
|
|
1,657
|
|
(2.4)
|
|
Used vehicle wholesale sales
|
|
(131)
|
|
(60)
|
|
118.3
|
|
Total used
|
|
1,058
|
|
1,085
|
|
(2.5)
|
|
Finance and insurance (per retail unit)
|
$ 1,375
|
|
$ 1,260
|
|
9.1
|
|
OTHER: (1)
|
|
|
|
|
|
|
|
SG&A expenses
|
|
$ 207,494
|
|
$ 200,980
|
|
3.2
|
|
SG&A as % revenues
|
|
11.0
|
|
11.1
|
|
|
|
SG&A as % gross profit
|
|
74.0
|
|
74.0
|
|
|
|
Operating margin %
|
|
3.4
|
|
3.5
|
|
|
|
Pretax margin %
|
|
2.5
|
|
2.5
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE:
|
|
|
|
|
|
|
|
Floorplan interest
|
|
$ (8,087)
|
|
$ (7,613)
|
|
6.2
|
|
Floorplan assistance
|
|
10,108
|
|
9,204
|
|
9.8
|
|
Net floorplan (expense) income
|
$ 2,021
|
|
$ 1,591
|
|
27.0
|
|
|
|
|
|
|
|
Other interest expense, net
|
$ (9,650)
|
|
$ (9,417)
|
|
2.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
2013
|
|
2012
|
|
% Change
|
|
REVENUES:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$ 3,132,461
|
|
$ 2,925,453
|
|
7.1
|
|
Used vehicle retail sales
|
|
1,310,629
|
|
1,236,285
|
|
6.0
|
|
Used vehicle wholesale sales
|
|
174,227
|
|
183,369
|
|
(5.0)
|
|
Total used
|
|
1,484,856
|
|
1,419,654
|
|
4.6
|
|
Parts and service
|
|
659,318
|
|
626,515
|
|
5.2
|
|
Finance and insurance
|
|
216,184
|
|
186,417
|
|
16.0
|
|
Total
|
|
$ 5,492,819
|
|
$ 5,158,039
|
|
6.5
|
|
|
|
|
|
|
|
|
GROSS MARGIN %:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
5.2
|
|
5.7
|
|
|
|
Used vehicle retail sales
|
|
8.5
|
|
8.6
|
|
|
|
Used vehicle wholesale sales
|
|
0.6
|
|
1.4
|
|
|
|
Total used
|
|
7.6
|
|
7.7
|
|
|
|
Parts and service
|
|
53.2
|
|
52.5
|
|
|
|
Finance and insurance
|
|
100.0
|
|
100.0
|
|
|
|
Total
|
|
15.4
|
|
15.4
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$ 163,994
|
|
$ 167,762
|
|
(2.2)
|
|
Used vehicle retail sales
|
|
111,897
|
|
106,498
|
|
5.1
|
|
Used vehicle wholesale sales
|
|
1,000
|
|
2,578
|
|
(61.2)
|
|
Total used
|
|
112,897
|
|
109,076
|
|
3.5
|
|
Parts and service
|
|
350,608
|
|
328,791
|
|
6.6
|
|
Finance and insurance
|
|
216,184
|
|
186,417
|
|
16.0
|
|
Total
|
|
$ 843,683
|
|
$ 792,046
|
|
6.5
|
|
|
|
|
|
|
|
|
UNITS SOLD:
|
|
|
|
|
|
|
|
Retail new vehicles sold
|
|
94,233
|
|
89,525
|
|
5.3
|
|
Retail used vehicles sold
|
|
65,250
|
|
61,742
|
|
5.7
|
|
Wholesale used vehicles sold
|
|
30,052
|
|
29,849
|
|
0.7
|
|
Total used
|
|
95,302
|
|
91,591
|
|
4.1
|
|
|
|
|
|
|
|
|
AVERAGE RETAIL SALES PRICE:
|
|
|
|
|
|
|
New vehicle retail
|
|
$ 33,242
|
|
$ 32,677
|
|
1.7
|
|
Used vehicle retail
|
|
$ 20,086
|
|
$ 20,023
|
|
0.3
|
|
|
|
|
|
|
|
|
GROSS PROFIT PER UNIT SOLD:
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$ 1,740
|
|
$ 1,874
|
|
(7.2)
|
|
Used vehicle retail sales
|
|
1,715
|
|
1,725
|
|
(0.6)
|
|
Used vehicle wholesale sales
|
|
33
|
|
86
|
|
(61.6)
|
|
Total used
|
|
1,185
|
|
1,191
|
|
(0.5)
|
|
Finance and insurance (per retail unit)
|
$ 1,356
|
|
$ 1,232
|
|
10.1
|
|
|
|
|
|
|
|
|
OTHER: (1)
|
|
|
|
|
|
|
|
SG&A expenses
|
|
$ 619,562
|
|
$ 592,295
|
|
4.6
|
|
SG&A as % revenues
|
|
11.3
|
|
11.5
|
|
|
|
SG&A as % gross profit
|
|
73.4
|
|
74.8
|
|
|
|
Operating margin %
|
|
3.7
|
|
3.5
|
|
|
|
Pretax margin %
|
|
2.7
|
|
2.5
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE:
|
|
|
|
|
|
|
|
Floorplan interest
|
|
$ (25,027)
|
|
$ (22,641)
|
|
10.5
|
|
Floorplan assistance
|
|
28,291
|
|
25,276
|
|
11.9
|
|
Net floorplan (expense) income
|
$ 3,264
|
|
$ 2,635
|
|
23.9
|
|
|
|
|
|
|
|
Other interest expense, net
|
$ (27,991)
|
|
$ (27,405)
|
|
2.1
|
|
|
|
|
|
|
|
|
(1)
|
These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for the description of aforementioned adjustments.
|
|
Group 1 Automotive, Inc.
|
|
Additional Information - U.K.
|
|
(Unaudited)
|
|
(Dollars in thousands, except per unit amounts)
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
2013
|
|
2012
|
|
% Change
|
|
REVENUES:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$136,740
|
|
$ 92,392
|
|
48.0
|
|
Used vehicle retail sales
|
|
59,508
|
|
39,118
|
|
52.1
|
|
Used vehicle wholesale sales
|
|
16,959
|
|
15,087
|
|
12.4
|
|
Total used
|
|
76,467
|
|
54,205
|
|
41.1
|
|
Parts and service
|
|
17,470
|
|
13,155
|
|
32.8
|
|
Finance and insurance
|
|
4,237
|
|
2,634
|
|
60.9
|
|
Total
|
|
$234,914
|
|
$162,386
|
|
44.7
|
|
|
|
|
|
|
|
|
GROSS MARGIN %:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
5.7
|
|
7.5
|
|
|
|
Used vehicle retail sales
|
|
6.5
|
|
7.1
|
|
|
|
Used vehicle wholesale sales
|
|
(1.3)
|
|
(0.0)
|
|
|
|
Total used
|
|
4.8
|
|
5.1
|
|
|
|
Parts and service
|
|
56.1
|
|
55.9
|
|
|
|
Finance and insurance
|
|
100.0
|
|
100.0
|
|
|
|
Total
|
|
10.9
|
|
12.1
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$ 7,848
|
|
$ 6,888
|
|
13.9
|
|
Used vehicle retail sales
|
|
3,849
|
|
2,795
|
|
37.7
|
|
Used vehicle wholesale sales
|
|
(214)
|
|
(7)
|
|
2,957.1
|
|
Total used
|
|
3,635
|
|
2,788
|
|
30.4
|
|
Parts and service
|
|
9,793
|
|
7,359
|
|
33.1
|
|
Finance and insurance
|
|
4,237
|
|
2,634
|
|
60.9
|
|
Total
|
|
$ 25,513
|
|
$ 19,669
|
|
29.7
|
|
|
|
|
|
|
|
|
UNITS SOLD:
|
|
|
|
|
|
|
|
Retail new vehicles sold
|
|
4,306
|
|
2,570
|
|
67.5
|
|
Retail used vehicles sold
|
|
2,510
|
|
1,349
|
|
86.1
|
|
Wholesale used vehicles sold
|
|
2,078
|
|
1,509
|
|
37.7
|
|
Total used
|
|
4,588
|
|
2,858
|
|
60.5
|
|
|
|
|
|
|
|
|
AVERAGE RETAIL SALES PRICE:
|
|
|
|
|
|
|
New vehicle retail
|
|
$ 31,756
|
|
$ 35,950
|
|
(11.7)
|
|
Used vehicle retail
|
|
$ 23,708
|
|
$ 28,998
|
|
(18.2)
|
|
|
|
|
|
|
|
|
GROSS PROFIT PER UNIT SOLD:
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$ 1,823
|
|
$ 2,680
|
|
(32.0)
|
|
Used vehicle retail sales
|
|
1,533
|
|
2,072
|
|
(26.0)
|
|
Used vehicle wholesale sales
|
|
(103)
|
|
(5)
|
|
1,960.0
|
|
Total used
|
|
792
|
|
976
|
|
(18.9)
|
|
Finance and insurance (per retail unit)
|
$ 622
|
|
$ 672
|
|
(7.4)
|
|
|
|
|
|
|
|
|
OTHER:
|
|
|
|
|
|
|
|
SG&A expenses
|
|
$ 19,656
|
|
$ 15,102
|
|
30.2
|
|
SG&A as % revenues
|
|
8.4
|
|
9.3
|
|
|
|
SG&A as % gross profit
|
|
77.0
|
|
76.8
|
|
|
|
Operating margin %
|
|
2.2
|
|
2.4
|
|
|
|
Pretax margin %
|
|
1.9
|
|
2.1
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE:
|
|
|
|
|
|
|
|
Floorplan interest
|
|
$ (425)
|
|
$ (329)
|
|
29.2
|
|
Floorplan assistance
|
|
111
|
|
-
|
|
100.0
|
|
Net floorplan (expense) income
|
$ (314)
|
|
$ (329)
|
|
(4.6)
|
|
|
|
|
|
|
|
Other interest expense, net
|
$ (293)
|
|
$ (203)
|
|
44.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
2013
|
|
2012
|
|
% Change
|
|
REVENUES:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$342,038
|
|
$209,138
|
|
63.5
|
|
Used vehicle retail sales
|
|
162,901
|
|
97,318
|
|
67.4
|
|
Used vehicle wholesale sales
|
|
48,682
|
|
35,046
|
|
38.9
|
|
Total used
|
|
211,583
|
|
132,364
|
|
59.8
|
|
Parts and service
|
|
49,265
|
|
31,889
|
|
54.5
|
|
Finance and insurance
|
|
10,542
|
|
5,713
|
|
84.5
|
|
Total
|
|
$613,428
|
|
$379,104
|
|
61.8
|
|
|
|
|
|
|
|
|
GROSS MARGIN %:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
6.3
|
|
7.4
|
|
|
|
Used vehicle retail sales
|
|
6.2
|
|
6.7
|
|
|
|
Used vehicle wholesale sales
|
|
(1.5)
|
|
(0.6)
|
|
|
|
Total used
|
|
4.4
|
|
4.7
|
|
|
|
Parts and service
|
|
54.5
|
|
54.9
|
|
|
|
Finance and insurance
|
|
100.0
|
|
100.0
|
|
|
|
Total
|
|
11.2
|
|
11.9
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$ 21,641
|
|
$ 15,450
|
|
40.1
|
|
Used vehicle retail sales
|
|
10,117
|
|
6,477
|
|
56.2
|
|
Used vehicle wholesale sales
|
|
(743)
|
|
(194)
|
|
283.0
|
|
Total used
|
|
9,374
|
|
6,283
|
|
49.2
|
|
Parts and service
|
|
26,871
|
|
17,507
|
|
53.5
|
|
Finance and insurance
|
|
10,542
|
|
5,713
|
|
84.5
|
|
Total
|
|
$ 68,428
|
|
$ 44,953
|
|
52.2
|
|
|
|
|
|
|
|
|
UNITS SOLD:
|
|
|
|
|
|
|
|
Retail new vehicles sold
|
|
10,738
|
|
5,861
|
|
83.2
|
|
Retail used vehicles sold
|
|
6,762
|
|
3,444
|
|
96.3
|
|
Wholesale used vehicles sold
|
|
5,772
|
|
3,438
|
|
67.9
|
|
Total used
|
|
12,534
|
|
6,882
|
|
82.1
|
|
|
|
|
|
|
|
|
AVERAGE RETAIL SALES PRICE:
|
|
|
|
|
|
|
New vehicle retail
|
|
$ 31,853
|
|
$ 35,683
|
|
(10.7)
|
|
Used vehicle retail
|
|
$ 24,091
|
|
$ 28,257
|
|
(14.7)
|
|
|
|
|
|
|
|
|
GROSS PROFIT PER UNIT SOLD:
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$ 2,015
|
|
$ 2,636
|
|
(23.6)
|
|
Used vehicle retail sales
|
|
1,496
|
|
1,881
|
|
(20.5)
|
|
Used vehicle wholesale sales
|
|
(129)
|
|
(56)
|
|
130.4
|
|
Total used
|
|
748
|
|
913
|
|
(18.1)
|
|
Finance and insurance (per retail unit)
|
$ 602
|
|
$ 614
|
|
(2.0)
|
|
|
|
|
|
|
|
|
OTHER: (1)
|
|
|
|
|
|
|
|
SG&A expenses
|
|
$ 54,120
|
|
$ 35,647
|
|
51.8
|
|
SG&A as % revenues
|
|
8.8
|
|
9.4
|
|
|
|
SG&A as % gross profit
|
|
79.1
|
|
79.3
|
|
|
|
Operating margin %
|
|
2.0
|
|
2.0
|
|
|
|
Pretax margin %
|
|
1.7
|
|
1.7
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE:
|
|
|
|
|
|
|
|
Floorplan interest
|
|
$ (1,152)
|
|
$ (784)
|
|
46.9
|
|
Floorplan assistance
|
|
111
|
|
-
|
|
100.0
|
|
Net floorplan (expense) income
|
$ (1,041)
|
|
$ (784)
|
|
32.8
|
|
|
|
|
|
|
|
Other interest expense, net
|
$ (800)
|
|
$ (443)
|
|
80.6
|
|
|
|
|
|
|
|
|
(1)
|
These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for the description of aforementioned adjustments.
|
|
Group 1 Automotive, Inc.
|
|
Additional Information - Brazil
|
|
(Unaudited)
|
|
(Dollars in thousands, except per unit amounts)
|
|
Three Months Ended
September 30, 2013
|
|
REVENUES:
|
|
|
|
New vehicle retail sales
|
|
$ 158,706
|
|
Used vehicle retail sales
|
|
26,604
|
|
Used vehicle wholesale sales
|
|
9,008
|
|
Total used
|
|
35,612
|
|
Parts and service
|
|
18,966
|
|
Finance and insurance
|
|
2,571
|
|
Total
|
|
$ 215,855
|
|
|
|
|
GROSS MARGIN %:
|
|
|
|
New vehicle retail sales
|
|
7.2
|
|
Used vehicle retail sales
|
|
6.4
|
|
Used vehicle wholesale sales
|
|
0.6
|
|
Total used
|
|
4.9
|
|
Parts and service
|
|
42.2
|
|
Finance and insurance
|
|
100.0
|
|
Total
|
|
11.0
|
|
|
|
|
GROSS PROFIT:
|
|
|
|
New vehicle retail sales
|
|
$ 11,361
|
|
Used vehicle retail sales
|
|
1,696
|
|
Used vehicle wholesale sales
|
|
53
|
|
Total used
|
|
1,749
|
|
Parts and service
|
|
8,003
|
|
Finance and insurance
|
|
2,571
|
|
Total
|
|
$ 23,684
|
|
|
|
|
UNITS SOLD:
|
|
|
|
Retail new vehicles sold
|
|
5,139
|
|
Retail used vehicles sold
|
|
1,343
|
|
Wholesale used vehicles sold
|
|
912
|
|
Total used
|
|
2,255
|
|
|
|
|
AVERAGE RETAIL SALES PRICE:
|
|
|
|
New vehicle retail
|
|
$ 30,883
|
|
Used vehicle retail
|
|
$ 19,809
|
|
|
|
|
GROSS PROFIT PER UNIT SOLD:
|
|
|
|
New vehicle retail sales
|
|
$ 2,211
|
|
Used vehicle retail sales
|
|
1,263
|
|
Used vehicle wholesale sales
|
|
58
|
|
Total used
|
|
776
|
|
Finance and insurance (per retail unit)
|
|
$ 397
|
|
|
|
|
OTHER: (1)
|
|
|
|
SG&A expenses
|
|
$ 20,277
|
|
SG&A as % revenues
|
|
9.4
|
|
SG&A as % gross profit
|
|
85.6
|
|
Operating margin %
|
|
1.4
|
|
Pretax margin %
|
|
0.3
|
|
|
|
|
INTEREST EXPENSE:
|
|
|
|
Floorplan interest
|
|
$ (2,178)
|
|
Floorplan assistance
|
|
-
|
|
Net floorplan (expense) income
|
|
$ (2,178)
|
|
|
|
|
Other interest expense, net
|
|
$ (29)
|
|
|
|
|
|
Nine Months Ended
September 30, 2013 (2)
|
|
|
|
|
|
|
REVENUES:
|
|
|
|
New vehicle retail sales
|
|
$ 398,622
|
|
Used vehicle retail sales
|
|
62,501
|
|
Used vehicle wholesale sales
|
|
20,758
|
|
Total used
|
|
83,259
|
|
Parts and service
|
|
45,193
|
|
Finance and insurance
|
|
5,768
|
|
Total
|
|
$ 532,842
|
|
|
|
|
GROSS MARGIN %:
|
|
|
|
New vehicle retail sales
|
|
7.7
|
|
Used vehicle retail sales
|
|
5.2
|
|
Used vehicle wholesale sales
|
|
5.5
|
|
Total used
|
|
5.3
|
|
Parts and service
|
|
40.5
|
|
Finance and insurance
|
|
100.0
|
|
Total
|
|
11.1
|
|
|
|
|
GROSS PROFIT:
|
|
|
|
New vehicle retail sales
|
|
$ 30,661
|
|
Used vehicle retail sales
|
|
3,249
|
|
Used vehicle wholesale sales
|
|
1,143
|
|
Total used
|
|
4,392
|
|
Parts and service
|
|
18,293
|
|
Finance and insurance
|
|
5,768
|
|
Total
|
|
$ 59,114
|
|
|
|
|
UNITS SOLD:
|
|
|
|
Retail new vehicles sold
|
|
11,967
|
|
Retail used vehicles sold
|
|
2,919
|
|
Wholesale used vehicles sold
|
|
2,028
|
|
Total used
|
|
4,947
|
|
|
|
|
AVERAGE RETAIL SALES PRICE:
|
|
|
|
New vehicle retail
|
|
$ 33,310
|
|
Used vehicle retail
|
|
$ 21,412
|
|
|
|
|
GROSS PROFIT PER UNIT SOLD:
|
|
|
|
New vehicle retail sales
|
|
$ 2,562
|
|
Used vehicle retail sales
|
|
1,113
|
|
Used vehicle wholesale sales
|
|
564
|
|
Total used
|
|
888
|
|
Finance and insurance (per retail unit)
|
|
$ 387
|
|
|
|
|
OTHER: (1)
|
|
|
|
SG&A expenses
|
|
$ 48,748
|
|
SG&A as % revenues
|
|
9.1
|
|
SG&A as % gross profit
|
|
82.5
|
|
Operating margin %
|
|
1.7
|
|
Pretax margin %
|
|
0.9
|
|
|
|
|
INTEREST EXPENSE:
|
|
|
|
Floorplan interest
|
|
$ (4,748)
|
|
Floorplan assistance
|
|
-
|
|
Net floorplan (expense) income
|
|
$ (4,748)
|
|
|
|
|
Other interest income, net
|
|
$ 7
|
|
|
|
|
(1)
|
These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.
|
|
|
|
(2)
|
Results are for the period from the date of acquisition (February 28, 2013) through September 30, 2013.
|
|
Group 1 Automotive, Inc.
|
|
Additional Information - Consolidated
|
|
(Unaudited)
|
|
(Dollars in thousands, except per unit amounts)
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
2013
|
|
2012
|
|
% Change
|
|
REVENUES:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$ 1,386,667
|
|
$ 1,141,286
|
|
21.5
|
|
Used vehicle retail sales
|
|
529,828
|
|
462,395
|
|
14.6
|
|
Used vehicle wholesale sales
|
|
85,800
|
|
78,424
|
|
9.4
|
|
Total used
|
|
615,628
|
|
540,819
|
|
13.8
|
|
Parts and service
|
|
255,316
|
|
224,990
|
|
13.5
|
|
Finance and insurance
|
|
82,536
|
|
69,477
|
|
18.8
|
|
Total
|
|
$ 2,340,147
|
|
$ 1,976,572
|
|
18.4
|
|
|
|
|
|
|
|
|
GROSS MARGIN %:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
5.3
|
|
5.8
|
|
|
|
Used vehicle retail sales
|
|
7.8
|
|
8.2
|
|
|
|
Used vehicle wholesale sales
|
|
(1.8)
|
|
(0.8)
|
|
|
|
Total used
|
|
6.5
|
|
6.9
|
|
|
|
Parts and service
|
|
52.4
|
|
52.5
|
|
|
|
Finance and insurance
|
|
100.0
|
|
100.0
|
|
|
|
Total
|
|
14.1
|
|
14.7
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$ 73,295
|
|
$ 66,550
|
|
10.1
|
|
Used vehicle retail sales
|
|
41,482
|
|
37,732
|
|
9.9
|
|
Used vehicle wholesale sales
|
|
(1,534)
|
|
(643)
|
|
138.6
|
|
Total used
|
|
39,948
|
|
37,089
|
|
7.7
|
|
Parts and service
|
|
133,683
|
|
118,115
|
|
13.2
|
|
Finance and insurance
|
|
82,536
|
|
69,477
|
|
18.8
|
|
Total
|
|
$ 329,462
|
|
$ 291,231
|
|
13.1
|
|
|
|
|
|
|
|
|
UNITS SOLD:
|
|
|
|
|
|
|
|
Retail new vehicles sold
|
|
42,311
|
|
34,532
|
|
22.5
|
|
Retail used vehicles sold
|
|
26,059
|
|
22,433
|
|
16.2
|
|
Wholesale used vehicles sold
|
|
13,445
|
|
12,049
|
|
11.6
|
|
Total used
|
|
39,504
|
|
34,482
|
|
14.6
|
|
|
|
|
|
|
|
|
AVERAGE RETAIL SALES PRICE:
|
|
|
|
|
|
|
|
New vehicle retail
|
|
$ 32,773
|
|
$ 33,050
|
|
(0.8)
|
|
Used vehicle retail
|
|
$ 20,332
|
|
$ 20,612
|
|
(1.4)
|
|
|
|
|
|
|
|
|
GROSS PROFIT PER UNIT SOLD:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$ 1,732
|
|
$ 1,927
|
|
(10.1)
|
|
Used vehicle retail sales
|
|
1,592
|
|
1,682
|
|
(5.4)
|
|
Used vehicle wholesale sales
|
|
(114)
|
|
(53)
|
|
115.1
|
|
Total used
|
|
1,011
|
|
1,076
|
|
(6.0)
|
|
Finance and insurance (per retail unit)
|
|
$ 1,207
|
|
$ 1,220
|
|
(1.1)
|
|
OTHER: (1)
|
|
|
|
|
|
|
|
SG&A expenses
|
|
$ 247,427
|
|
$ 216,082
|
|
14.5
|
|
SG&A as % revenues
|
|
10.6
|
|
10.9
|
|
|
|
SG&A as % gross profit
|
|
75.1
|
|
74.2
|
|
|
|
Operating margin %
|
|
3.1
|
|
3.4
|
|
|
|
Pretax margin %
|
|
2.2
|
|
2.5
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE:
|
|
|
|
|
|
|
|
Floorplan interest
|
|
$ (10,690)
|
|
$ (7,942)
|
|
34.6
|
|
Floorplan assistance
|
|
10,219
|
|
9,204
|
|
11.0
|
|
Net floorplan (expense) income
|
|
$ (471)
|
|
$ 1,262
|
|
(137.3)
|
|
|
|
|
|
|
|
|
Other interest expense, net
|
|
$ (9,971)
|
|
$ (9,619)
|
|
3.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
2013
|
|
2012
|
|
% Change
|
|
REVENUES:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$ 3,873,121
|
|
$ 3,134,591
|
|
23.6
|
|
Used vehicle retail sales
|
|
1,536,031
|
|
1,333,603
|
|
15.2
|
|
Used vehicle wholesale sales
|
|
243,667
|
|
218,415
|
|
11.6
|
|
Total used
|
|
1,779,698
|
|
1,552,018
|
|
14.7
|
|
Parts and service
|
|
753,776
|
|
658,404
|
|
14.5
|
|
Finance and insurance
|
|
232,494
|
|
192,130
|
|
21.0
|
|
Total
|
|
$ 6,639,089
|
|
$ 5,537,143
|
|
19.9
|
|
|
|
|
|
|
|
|
GROSS MARGIN %:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
5.6
|
|
5.8
|
|
|
|
Used vehicle retail sales
|
|
8.2
|
|
8.5
|
|
|
|
Used vehicle wholesale sales
|
|
0.6
|
|
1.1
|
|
|
|
Total used
|
|
7.1
|
|
7.4
|
|
|
|
Parts and service
|
|
52.5
|
|
52.6
|
|
|
|
Finance and insurance
|
|
100.0
|
|
100.0
|
|
|
|
Total
|
|
14.6
|
|
15.1
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$ 216,296
|
|
$ 183,212
|
|
18.1
|
|
Used vehicle retail sales
|
|
125,263
|
|
112,975
|
|
10.9
|
|
Used vehicle wholesale sales
|
|
1,400
|
|
2,384
|
|
(41.3)
|
|
Total used
|
|
126,663
|
|
115,359
|
|
9.8
|
|
Parts and service
|
|
395,772
|
|
346,298
|
|
14.3
|
|
Finance and insurance
|
|
232,494
|
|
192,130
|
|
21.0
|
|
Total
|
|
$ 971,225
|
|
$ 836,999
|
|
16.0
|
|
|
|
|
|
|
|
|
UNITS SOLD:
|
|
|
|
|
|
|
|
Retail new vehicles sold
|
|
116,938
|
|
95,386
|
|
22.6
|
|
Retail used vehicles sold
|
|
74,931
|
|
65,186
|
|
14.9
|
|
Wholesale used vehicles sold
|
|
37,852
|
|
33,287
|
|
13.7
|
|
Total used
|
|
112,783
|
|
98,473
|
|
14.5
|
|
|
|
|
|
|
|
|
AVERAGE RETAIL SALES PRICE:
|
|
|
|
|
|
|
|
New vehicle retail
|
|
$ 33,121
|
|
$ 32,862
|
|
0.8
|
|
Used vehicle retail
|
|
$ 20,499
|
|
$ 20,458
|
|
0.2
|
|
|
|
|
|
|
|
|
GROSS PROFIT PER UNIT SOLD:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$ 1,850
|
|
$ 1,921
|
|
(3.7)
|
|
Used vehicle retail sales
|
|
1,672
|
|
1,733
|
|
(3.5)
|
|
Used vehicle wholesale sales
|
|
37
|
|
72
|
|
(48.6)
|
|
Total used
|
|
1,123
|
|
1,171
|
|
(4.1)
|
|
Finance and insurance (per retail unit)
|
|
$ 1,212
|
|
$ 1,197
|
|
1.3
|
|
|
|
|
|
|
|
|
OTHER: (1)
|
|
|
|
|
|
|
|
SG&A expenses
|
|
$ 722,430
|
|
$ 627,942
|
|
15.0
|
|
SG&A as % revenues
|
|
10.9
|
|
11.3
|
|
|
|
SG&A as % gross profit
|
|
74.4
|
|
75.0
|
|
|
|
Operating margin %
|
|
3.3
|
|
3.4
|
|
|
|
Pretax margin %
|
|
2.5
|
|
2.4
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE:
|
|
|
|
|
|
|
|
Floorplan interest
|
|
$ (30,927)
|
|
$ (23,424)
|
|
32.0
|
|
Floorplan assistance
|
|
28,402
|
|
25,276
|
|
12.4
|
|
Net floorplan (expense) income
|
|
$ (2,525)
|
|
$ 1,852
|
|
(236.3)
|
|
|
|
|
|
|
|
|
Other interest expense, net
|
|
$ (28,783)
|
|
$ (27,849)
|
|
3.4
|
|
|
|
|
|
|
|
|
(1)
|
These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.
|
|
Group 1 Automotive, Inc.
|
|
Additional Information - Same Store(1)
|
|
(Unaudited)
|
|
(Dollars in thousands, except per unit amounts)
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
2013
|
|
2012
|
|
% Change
|
|
REVENUES:
|
|
|
|
|
|
|
New vehicle retail sales
|
$ 1,148,915
|
|
$ 1,066,782
|
|
7.7
|
|
Used vehicle retail sales
|
467,093
|
|
438,868
|
|
6.4
|
|
Used vehicle wholesale sales
|
70,965
|
|
73,767
|
|
(3.8)
|
|
Total used
|
538,058
|
|
512,635
|
|
5.0
|
|
Parts and service
|
226,981
|
|
210,261
|
|
8.0
|
|
Finance and insurance
|
75,779
|
|
66,200
|
|
14.5
|
|
Total
|
$ 1,989,733
|
|
$ 1,855,878
|
|
7.2
|
|
|
|
|
|
|
|
|
GROSS MARGIN %:
|
|
|
|
|
|
|
New vehicle retail sales
|
5.1
|
|
5.9
|
|
|
|
Used vehicle retail sales
|
7.8
|
|
8.2
|
|
|
|
Used vehicle wholesale sales
|
(1.5)
|
|
(0.6)
|
|
|
|
Total used
|
6.6
|
|
6.9
|
|
|
|
Parts and service
|
53.3
|
|
52.5
|
|
|
|
Finance and insurance
|
100.0
|
|
100.0
|
|
|
|
Total
|
14.6
|
|
14.8
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT:
|
|
|
|
|
|
|
New vehicle retail sales
|
$ 58,652
|
|
$ 63,355
|
|
(7.4)
|
|
Used vehicle retail sales
|
36,585
|
|
35,890
|
|
1.9
|
|
Used vehicle wholesale sales
|
(1,059)
|
|
(478)
|
|
121.5
|
|
Total used
|
35,526
|
|
35,412
|
|
0.3
|
|
Parts and service
|
120,894
|
|
110,366
|
|
9.5
|
|
Finance and insurance
|
75,779
|
|
66,200
|
|
14.5
|
|
Total
|
$ 290,851
|
|
$ 275,333
|
|
5.6
|
|
|
-
|
|
-
|
|
|
|
UNITS SOLD:
|
|
|
|
|
|
|
Retail new vehicles sold
|
34,174
|
|
31,904
|
|
7.1
|
|
Retail used vehicles sold
|
22,478
|
|
21,103
|
|
6.5
|
|
Wholesale used vehicles sold
|
11,313
|
|
11,107
|
|
1.9
|
|
Total used
|
33,791
|
|
32,210
|
|
4.9
|
|
|
|
|
|
|
|
|
AVERAGE RETAIL SALES PRICE:
|
|
|
|
|
|
|
New vehicle retail
|
$ 33,620
|
|
$ 33,437
|
|
0.5
|
|
Used vehicle retail
|
$ 20,780
|
|
$ 20,796
|
|
(0.1)
|
|
|
|
|
|
|
|
|
GROSS PROFIT PER UNIT SOLD:
|
|
|
|
|
|
|
New vehicle retail sales
|
$ 1,716
|
|
$ 1,986
|
|
(13.6)
|
|
Used vehicle retail sales
|
1,628
|
|
1,701
|
|
(4.3)
|
|
Used vehicle wholesale sales
|
(94)
|
|
(43)
|
|
118.6
|
|
Total used
|
1,051
|
|
1,099
|
|
(4.4)
|
|
Finance and insurance (per retail unit)
|
$ 1,338
|
|
$ 1,249
|
|
7.1
|
|
|
|
|
|
|
|
OTHER: (2)
|
|
|
|
|
|
|
SG&A expenses
|
$ 214,197
|
|
$ 201,034
|
|
6.5
|
|
SG&A as % revenues
|
10.8
|
|
10.8
|
|
|
|
SG&A as % gross profit
|
73.6
|
|
73.0
|
|
|
|
Operating margin %
|
3.4
|
|
3.6
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
2013
|
|
2012
|
|
% Change
|
|
REVENUES:
|
|
|
|
|
|
|
New vehicle retail sales
|
$ 3,233,449
|
|
$ 3,003,079
|
|
7.7
|
|
Used vehicle retail sales
|
1,354,555
|
|
1,285,471
|
|
5.4
|
|
Used vehicle wholesale sales
|
201,109
|
|
208,297
|
|
(3.5)
|
|
Total used
|
1,555,664
|
|
1,493,768
|
|
4.1
|
|
Parts and service
|
677,732
|
|
631,012
|
|
7.4
|
|
Finance and insurance
|
214,889
|
|
186,140
|
|
15.4
|
|
Total
|
$ 5,681,734
|
|
$ 5,313,999
|
|
6.9
|
|
|
|
|
|
|
|
|
GROSS MARGIN %:
|
|
|
|
|
|
|
New vehicle retail sales
|
5.3
|
|
5.9
|
|
|
|
Used vehicle retail sales
|
8.3
|
|
8.5
|
|
|
|
Used vehicle wholesale sales
|
0.7
|
|
1.2
|
|
|
|
Total used
|
7.3
|
|
7.5
|
|
|
|
Parts and service
|
53.2
|
|
52.6
|
|
|
|
Finance and insurance
|
100.0
|
|
100.0
|
|
|
|
Total
|
15.2
|
|
15.2
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT:
|
|
|
|
|
|
|
New vehicle retail sales
|
$ 172,909
|
|
$ 177,133
|
|
(2.4)
|
|
Used vehicle retail sales
|
112,026
|
|
109,286
|
|
2.5
|
|
Used vehicle wholesale sales
|
1,357
|
|
2,591
|
|
(47.6)
|
|
Total used
|
113,383
|
|
111,877
|
|
1.3
|
|
Parts and service
|
360,462
|
|
331,692
|
|
8.7
|
|
Finance and insurance
|
214,889
|
|
186,140
|
|
15.4
|
|
Total
|
$ 861,643
|
|
$ 806,842
|
|
6.8
|
|
|
-
|
|
-
|
|
|
|
UNITS SOLD:
|
|
|
|
|
|
|
Retail new vehicles sold
|
96,154
|
|
90,695
|
|
6.0
|
|
Retail used vehicles sold
|
65,254
|
|
62,505
|
|
4.4
|
|
Wholesale used vehicles sold
|
31,852
|
|
31,287
|
|
1.8
|
|
Total used
|
97,106
|
|
93,792
|
|
3.5
|
|
|
|
|
|
|
|
|
AVERAGE RETAIL SALES PRICE:
|
|
|
|
|
|
|
New vehicle retail
|
$ 33,628
|
|
$ 33,112
|
|
1.6
|
|
Used vehicle retail
|
$ 20,758
|
|
$ 20,566
|
|
0.9
|
|
|
|
|
|
|
|
|
GROSS PROFIT PER UNIT SOLD:
|
|
|
|
|
|
|
New vehicle retail sales
|
$ 1,798
|
|
$ 1,953
|
|
(7.9)
|
|
Used vehicle retail sales
|
1,717
|
|
1,748
|
|
(1.8)
|
|
Used vehicle wholesale sales
|
43
|
|
83
|
|
(48.2)
|
|
Total used
|
1,168
|
|
1,193
|
|
(2.1)
|
|
Finance and insurance (per retail unit)
|
$ 1,331
|
|
$ 1,215
|
|
9.5
|
|
|
|
|
|
|
|
|
OTHER: (2)
|
|
|
|
|
|
|
SG&A expenses
|
$ 630,048
|
|
$ 598,533
|
|
5.3
|
|
SG&A as % revenues
|
11.1
|
|
11.3
|
|
|
|
SG&A as % gross profit
|
73.1
|
|
74.2
|
|
|
|
Operating margin %
|
3.7
|
|
3.5
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Same store amounts include the results for the identical months in each period presented in the comparison, commencing with the first full month we owned the dealership and, in the case of dispositions, ending with the last full month we owned it. Same store results also include the activities of our corporate office.
|
|
|
|
(2)
|
These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.
|
|
Group 1 Automotive, Inc.
|
|
Reconciliation of Certain Non-GAAP Financial Measures - Consolidated
|
|
(Unaudited)
|
|
(Dollars in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
NET INCOME RECONCILIATION:
|
2013
|
|
2012
|
|
% Change
|
|
|
|
|
|
|
|
|
As reported
|
$ 32,765
|
|
$ 31,335
|
|
4.6
|
|
After-tax adjustments:
|
|
|
|
|
|
|
Catastrophic events (3)
|
158
|
|
-
|
|
|
|
Net gain on dealership dispositions (4)
|
(230)
|
|
-
|
|
|
|
Non-cash asset impairment (6)
|
349
|
|
-
|
|
|
|
Severance paid (11)
|
454
|
|
-
|
|
|
|
Income tax effect of acquisition costs
|
(630)
|
|
-
|
|
|
|
Adjusted net income (1)
|
$ 32,866
|
|
$ 31,335
|
|
4.9
|
|
|
|
|
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED
|
|
|
|
|
|
|
COMMON SHARES RECONCILIATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
|
$ 32,866
|
|
$ 31,335
|
|
4.9
|
|
Less: Adjusted earnings allocated to participating securities
|
1,324
|
|
1,641
|
|
(19.3)
|
|
Adjusted net income available to diluted common shares
|
$ 31,542
|
|
$ 29,694
|
|
6.2
|
|
|
|
|
|
|
|
|
DILUTED INCOME PER COMMON SHARE RECONCILIATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
$ 1.19
|
|
$ 1.32
|
|
(9.8)
|
|
After-tax adjustments:
|
|
|
|
|
|
|
Catastrophic events
|
0.01
|
|
-
|
|
|
|
Net gain on dealership dispositions
|
(0.01)
|
|
-
|
|
|
|
Non-cash asset impairment
|
0.01
|
|
-
|
|
|
|
Severance paid
|
0.02
|
|
-
|
|
|
|
Income tax effect of acquisition costs
|
(0.02)
|
|
-
|
|
|
|
Adjusted diluted income per share (1)
|
$ 1.20
|
|
$ 1.32
|
|
(9.1)
|
|
|
|
|
|
|
|
|
SG&A RECONCILIATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
$ 246,863
|
|
$ 216,082
|
|
14.2
|
|
Pre-tax adjustments:
|
|
|
|
|
|
|
Catastrophic events
|
(258)
|
|
-
|
|
|
|
Net gain on dealership dispositions
|
1,373
|
|
-
|
|
|
|
Severance paid
|
(551)
|
|
-
|
|
|
|
Adjusted SG&A (1)
|
$ 247,427
|
|
$ 216,082
|
|
14.5
|
|
|
|
|
|
|
|
|
SG&A AS % REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
10.5
|
|
10.9
|
|
|
|
Adjusted (1)
|
10.6
|
|
10.9
|
|
|
|
|
|
|
|
|
|
|
SG&A AS % GROSS PROFIT:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
74.9
|
|
74.2
|
|
|
|
Adjusted (1)
|
75.1
|
|
74.2
|
|
|
|
|
|
|
|
|
|
|
OPERATING MARGIN %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
3.1
|
|
3.4
|
|
|
|
Adjusted (1), (7)
|
3.1
|
|
3.4
|
|
|
|
|
|
|
|
|
|
|
PRETAX MARGIN %:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
2.2
|
|
2.5
|
|
|
|
Adjusted (1), (8)
|
2.2
|
|
2.5
|
|
|
|
|
|
|
|
|
|
|
SAME STORE SG&A RECONCILIATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
$ 214,526
|
|
$ 201,034
|
|
6.7
|
|
Pre-tax adjustments:
|
|
|
|
|
|
|
Catastrophic events
|
(258)
|
|
-
|
|
|
|
Severance paid
|
(71)
|
|
-
|
|
|
|
Adjusted Same Store SG&A (1)
|
$ 214,197
|
|
$ 201,034
|
|
6.5
|
|
|
|
|
|
|
|
|
SAME STORE SG&A AS % REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
10.8
|
|
10.8
|
|
|
|
Adjusted (1)
|
10.8
|
|
10.8
|
|
|
|
|
|
|
|
|
|
|
SAME STORE SG&A AS % GROSS PROFIT:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
73.8
|
|
73.0
|
|
|
|
Adjusted (1)
|
73.6
|
|
73.0
|
|
|
|
|
|
|
|
|
|
|
SAME STORE OPERATING MARGIN %:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
3.4
|
|
3.6
|
|
|
|
Adjusted (1), (9)
|
3.4
|
|
3.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
NET INCOME RECONCILIATION:
|
2013
|
|
2012
|
|
% Change
|
|
|
|
|
|
|
|
|
As reported
|
$ 92,271
|
|
$ 83,077
|
|
11.1
|
|
After-tax adjustments:
|
|
|
|
|
|
|
Acquisition costs(2)
|
4,638
|
|
-
|
|
|
|
Catastrophic events (3)
|
7,419
|
|
1,658
|
|
|
|
Net gain on dealership dispositions (4)
|
(5,500)
|
|
-
|
|
|
|
Lease termination (5)
|
124
|
|
-
|
|
|
|
Non-cash asset impairment (6)
|
718
|
|
115
|
|
|
|
Net gain on real estate transactions (10)
|
-
|
|
(659)
|
|
|
|
Severance paid (11)
|
454
|
|
-
|
|
|
|
Income tax effect of acquisition costs
|
1,699
|
|
-
|
|
|
|
Adjusted net income (1)
|
$ 101,823
|
|
$ 84,191
|
|
20.9
|
|
|
|
|
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED
|
|
|
|
|
|
|
COMMON SHARES RECONCILIATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
|
$ 101,823
|
|
$ 84,191
|
|
20.9
|
|
Less: Adjusted earnings allocated to participating securities
|
4,241
|
|
4,432
|
|
(4.3)
|
|
Adjusted net income available to diluted common shares
|
$ 97,582
|
|
$ 79,759
|
|
22.3
|
|
|
|
|
|
|
|
|
DILUTED INCOME PER COMMON SHARE RECONCILIATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
$ 3.52
|
|
$ 3.50
|
|
0.6
|
|
After-tax adjustments:
|
|
|
|
|
|
|
Acquisition costs
|
0.17
|
|
-
|
|
|
|
Catastrophic events
|
0.28
|
|
0.07
|
|
|
|
Net gain on dealership dispositions
|
(0.21)
|
|
-
|
|
|
|
Lease termination
|
-
|
|
-
|
|
|
|
Non-cash asset impairment
|
0.03
|
|
-
|
|
|
|
Net gain on real estate transactions
|
-
|
|
(0.03)
|
|
|
|
Severance paid
|
0.02
|
|
-
|
|
|
|
Income tax effect of acquisition costs
|
0.07
|
|
-
|
|
|
|
Adjusted diluted income per share (1)
|
$ 3.88
|
|
$ 3.54
|
|
9.6
|
|
|
|
|
|
|
|
|
SG&A RECONCILIATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
$ 731,455
|
|
$ 629,521
|
|
16.2
|
|
Pre-tax adjustments:
|
|
|
|
|
|
|
Acquisition costs
|
(6,512)
|
|
-
|
|
|
|
Catastrophic events
|
(12,158)
|
|
(2,650)
|
|
|
|
Net gain on dealership dispositions
|
10,396
|
|
-
|
|
|
|
Severance paid
|
(551)
|
|
-
|
|
|
|
Lease termination
|
(200)
|
|
-
|
|
|
|
Net gain on real estate transactions
|
-
|
|
1,071
|
|
|
|
Adjusted SG&A (1)
|
$ 722,430
|
|
$ 627,942
|
|
15.0
|
|
|
|
|
|
|
|
|
SG&A AS % REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
11.0
|
|
11.4
|
|
|
|
Adjusted (1)
|
10.9
|
|
11.3
|
|
|
|
|
|
|
|
|
|
|
SG&A AS % OF GROSS PROFIT:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
75.3
|
|
75.2
|
|
|
|
Adjusted (1)
|
74.4
|
|
75.0
|
|
|
|
|
|
|
|
|
|
|
OPERATING MARGIN %:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
3.2
|
|
3.3
|
|
|
|
Adjusted (1), (7)
|
3.3
|
|
3.4
|
|
|
|
|
|
|
|
|
|
|
PRETAX MARGIN %:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
2.3
|
|
2.4
|
|
|
|
Adjusted (1), (8)
|
2.5
|
|
2.4
|
|
|
|
|
|
|
|
|
|
|
SAME STORE SG&A RECONCILIATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
$ 647,778
|
|
$ 601,687
|
|
7.7
|
|
Pre-tax adjustments:
|
|
|
|
|
|
|
Acquisition costs
|
(5,301)
|
|
-
|
|
|
|
Catastrophic events
|
(12,158)
|
|
(2,650)
|
|
|
|
Severance paid
|
(71)
|
|
-
|
|
|
|
Loss on real estate transaction
|
-
|
|
(504)
|
|
|
|
Lease termination
|
(200)
|
|
-
|
|
|
|
Adjusted Same Store SG&A (1)
|
$ 630,048
|
|
$ 598,533
|
|
5.3
|
|
|
|
|
|
|
|
|
SAME STORE SG&A AS % REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
11.4
|
|
11.3
|
|
|
|
Adjusted (1)
|
11.1
|
|
11.3
|
|
|
|
|
|
|
|
|
|
|
SAME STORE SG&A AS % OF GROSS PROFIT:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
75.2
|
|
74.6
|
|
|
|
Adjusted (1)
|
73.1
|
|
74.2
|
|
|
|
|
|
|
|
|
|
|
SAME STORE OPERATING MARGIN %:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
3.3
|
|
3.4
|
|
|
|
Adjusted (1), (9)
|
3.7
|
|
3.5
|
|
|
|
|
|
|
|
|
|
|
(1)
|
We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items. These adjusted measures are not measures of financial performance under GAAP. As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures. We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations.
|
|
|
|
(2)
|
Adjustment is net of tax benefit of $2,663 for the nine months ended September 30, 2013, calculated utilizing the applicable federal and state tax rates for the adjustment.
|
|
|
|
(3)
|
Adjustment is net of tax benefit of $100 and $4,739 for the three and nine months ended September 30, 2013, and $992 for the nine months ended September 30, 2012, respectively, calculated utilizing the applicable federal and state tax rates for the adjustment.
|
|
|
|
(4)
|
Adjustment is net of tax provision of $1,143 and $4,896 for the three and nine months ended September 30, 2013, respectively, calculated utilizing the applicable federal and state tax rates for the adjustment.
|
|
|
|
(5)
|
Adjustment is net of tax benefit of $76 for the nine months ended September 30, 2013, calculated utilizing the applicable federal and state tax rates for the adjustment.
|
|
|
|
(6)
|
Adjustment is net of tax benefit of $216 and $456 for the three and nine months ended September 30, 2013, and $72 for the nine months ended September 30, 2012, calculated utilizing the applicable federal and state tax rates for the adjustment.
|
|
|
|
(7)
|
Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges for all periods except three months ended September 30, 2012.
|
|
|
|
(8)
|
Excludes the impact of SG&A reconciling items above, non-cash asset impairment charges for all periods, as well as the other expense, net of $789, for the nine months ended September 30, 2013.
|
|
|
|
(9)
|
Excludes the impact of Same Store SG&A reconciling items above, as well as Same Store non-cash asset impairment charges of $565 and $1,174 for the three and nine months ended September 30, 2013, and $187 for the nine months ended September 30, 2012.
|
|
|
|
(10)
|
Adjustment is net of tax provision of $412 for the nine months ended September 30, 2012, calculated utilizing the applicable federal and state tax rates for the adjustment.
|
|
|
|
(11)
|
Adjustment is net of tax benefit of $97 for the three and nine months ended September 30, 2013, calculated utilizing the applicable federal and state tax rates for the adjustment.
|
|
Group 1 Automotive, Inc.
|
|
Reconciliation of Certain Non-GAAP Financial Measures - U.S.
|
|
(Unaudited)
|
|
(Dollars in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
2013
|
|
2012
|
|
% Change
|
|
SG&A RECONCILIATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
$ 206,635
|
|
$ 200,980
|
|
2.8
|
|
Pre-tax adjustments:
|
|
|
|
|
|
|
Catastrophic events
|
(258)
|
|
-
|
|
|
|
Net gain on dealership dispositions
|
1,373
|
|
-
|
|
|
|
Severance paid
|
(256)
|
|
-
|
|
|
|
Adjusted SG&A (1)
|
$ 207,494
|
|
$ 200,980
|
|
3.2
|
|
|
|
|
|
|
|
|
SG&A AS % REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
10.9
|
|
11.1
|
|
|
|
Adjusted (1)
|
11.0
|
|
11.1
|
|
|
|
|
|
|
|
|
|
|
SG&A AS % GROSS PROFIT:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
73.7
|
|
74.0
|
|
|
|
Adjusted (1)
|
74.0
|
|
74.0
|
|
|
|
|
|
|
|
|
|
|
OPERATING MARGIN %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
3.4
|
|
3.5
|
|
|
|
Adjusted (1), (2)
|
3.4
|
|
3.5
|
|
|
|
|
|
|
|
|
|
|
PRETAX MARGIN %:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
2.5
|
|
2.5
|
|
|
|
Adjusted (1), (2)
|
2.5
|
|
2.5
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
2013
|
|
2012
|
|
% Change
|
|
SG&A RECONCILIATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
$ 626,939
|
|
$ 593,874
|
|
5.6
|
|
Pre-tax adjustments:
|
|
|
|
|
|
|
Acquisition costs
|
(5,159)
|
|
-
|
|
|
|
Catastrophic events
|
(12,158)
|
|
(2,650)
|
|
|
|
Net gain on dealership dispositions
|
10,396
|
|
-
|
|
|
|
Net gain on real estate transactions
|
-
|
|
1,071
|
|
|
|
Severance paid
|
(256)
|
|
-
|
|
|
|
Lease termination
|
(200)
|
|
-
|
|
|
|
Adjusted SG&A (1)
|
$ 619,562
|
|
$ 592,295
|
|
4.6
|
|
|
|
|
|
|
|
|
SG&A AS % REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
11.4
|
|
11.5
|
|
|
|
Adjusted (1)
|
11.3
|
|
11.5
|
|
|
|
|
|
|
|
|
|
|
SG&A AS % OF GROSS PROFIT:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
74.3
|
|
75.0
|
|
|
|
Adjusted (1)
|
73.4
|
|
74.8
|
|
|
|
|
|
|
|
|
|
|
OPERATING MARGIN %:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
3.5
|
|
3.4
|
|
|
|
Adjusted (1), (2)
|
3.7
|
|
3.5
|
|
|
|
|
|
|
|
|
|
|
PRETAX MARGIN %:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
2.5
|
|
2.5
|
|
|
|
Adjusted (1), (2)
|
2.7
|
|
2.5
|
|
|
|
|
|
|
|
|
|
|
(1)
|
We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items. These adjusted measures are not measures of financial performance under GAAP. As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures. We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations.
|
|
|
|
(2)
|
Excludes the impact of SG&A reconciling items above, as well as asset impairments of $565 and $1,174 for the three and nine months ended September 30, 2013, and $187 for the nine months ended September 30, 2012.
|
|
Group 1 Automotive, Inc.
|
|
Reconciliation of Certain Non-GAAP Financial Measures - U.K.
|
|
(Unaudited)
|
|
(Dollars in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
2013
|
|
2012
|
|
% Change
|
|
SG&A RECONCILIATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
$ 54,262
|
|
$ 35,647
|
|
52.2
|
|
Pre-tax adjustments:
|
|
|
|
|
|
|
Acquisition costs
|
(142)
|
|
-
|
|
|
|
Adjusted SG&A (1)
|
$ 54,120
|
|
$ 35,647
|
|
51.8
|
|
|
|
|
|
|
|
|
SG&A AS % REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
8.8
|
|
9.4
|
|
|
|
Adjusted (1)
|
8.8
|
|
9.4
|
|
|
|
|
|
|
|
|
|
|
SG&A AS % OF GROSS PROFIT:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
79.3
|
|
79.3
|
|
|
|
Adjusted (1)
|
79.1
|
|
79.3
|
|
|
|
|
|
|
|
|
|
|
OPERATING MARGIN %:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
2.0
|
|
2.0
|
|
|
|
Adjusted (1), (2)
|
2.0
|
|
2.0
|
|
|
|
|
|
|
|
|
|
|
PRETAX MARGIN %:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
1.7
|
|
1.7
|
|
|
|
Adjusted (1), (2)
|
1.7
|
|
1.7
|
|
|
|
|
|
|
|
|
|
|
(1)
|
We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items. These adjusted measures are not measures of financial performance under GAAP. As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures. We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations.
|
|
|
|
(2)
|
Excludes the impact of SG&A reconciling item above.
|
|
Group 1 Automotive, Inc.
|
|
Reconciliation of Certain Non-GAAP Financial Measures - Brazil
|
|
(Unaudited)
|
|
(Dollars in thousands, except per share amounts)
|
|
|
Three Months Ended
September 30,
|
|
2013
|
|
|
|
SG&A RECONCILIATION:
|
|
|
|
|
|
As reported
|
$ 20,572
|
|
Pre-tax adjustments:
|
|
|
Severance paid
|
(295)
|
|
Adjusted SG&A (1)
|
$ 20,277
|
|
|
|
|
SG&A AS % REVENUES:
|
|
|
|
|
|
Unadjusted
|
9.5
|
|
Adjusted (1)
|
9.4
|
|
|
|
|
SG&A AS % GROSS PROFIT:
|
|
|
|
|
|
Unadjusted
|
86.9
|
|
Adjusted (1)
|
85.6
|
|
|
|
|
OPERATING MARGIN %
|
|
|
|
|
|
Unadjusted
|
1.2
|
|
Adjusted (1), (2)
|
1.4
|
|
|
|
|
PRETAX MARGIN %:
|
|
|
|
|
|
Unadjusted
|
0.2
|
|
Adjusted (1), (3)
|
0.3
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
2013 (4)
|
|
SG&A RECONCILIATION:
|
|
|
|
|
|
As reported
|
$ 50,254
|
|
Pre-tax adjustments:
|
|
|
Acquisition costs
|
(1,211)
|
|
Severance paid
|
(295)
|
|
Adjusted SG&A (1)
|
$ 48,748
|
|
|
|
|
SG&A AS % REVENUES:
|
|
|
|
|
|
Unadjusted
|
9.4
|
|
Adjusted (1)
|
9.1
|
|
|
|
|
SG&A AS % OF GROSS PROFIT:
|
|
|
|
|
|
Unadjusted
|
85.0
|
|
Adjusted (1)
|
82.5
|
|
|
|
|
OPERATING MARGIN %:
|
|
|
|
|
|
Unadjusted
|
1.5
|
|
Adjusted (1), (2)
|
1.7
|
|
|
|
|
PRETAX MARGIN %:
|
|
|
|
|
|
Unadjusted
|
0.4
|
|
Adjusted (1), (3)
|
0.9
|
|
|
|
|
(1)
|
We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items. These adjusted measures are not measures of financial performance under GAAP. As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures. We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations.
|
|
|
|
(2)
|
Excludes the impact of SG&A reconciling items above.
|
|
|
|
(3)
|
Excludes the impact of SG&A reconciling items above, as well as the other expense, net of $789, for the period from the date of acquisition (February 28, 2013) through September 30, 2013.
|
|
|
|
(4)
|
Results are for the period from the date of acquisition through September 30, 2013.
|
SOURCE Group 1 Automotive, Inc.