HOUSTON, July 25, 2013 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), an international, Fortune 500 automotive retailer, today reported second quarter 2013 adjusted net income of $39.7 million, a 33.6 percent increase, and adjusted diluted earnings per common share of $1.52, a 21.6 percent increase, on a year-over-year comparable basis for the period ended June 30, 2013.
CONSOLIDATED RESULTS FOR SECOND QUARTER 2013 (year-over-year comparable basis)
- Total revenue increased 23.2 percent to an all-time quarterly record of $2.3 billion; total gross profit grew 19.6 percent to $341.3 million.
- New vehicle revenue increased 27.3 percent, reflecting 26.1 percent higher unit sales, as Same Store new vehicle unit sales grew 5.1 percent.
- Used vehicle retail revenue increased 17.2 percent, reflecting 16.5 percent higher used retail unit sales, as Same Store used vehicle unit sales grew 4.2 percent.
- Total parts, service, and collision sales increased 18.4 percent, with record Same Store growth of 8.8 percent.
- Same Store finance and insurance (F&I) per retail unit improved $122 to $1,328, a 10.1 percent increase.
- Selling, general and administrative (SG&A) expenses as a percent of gross profit improved 180 basis points, to 72.8 percent, with a Same Store improvement of 250 basis points, to 71.2 percent.
- Operating margin expanded 20 basis points to 3.6 percent, with a Same Store operating margin expansion of 40 basis points to 4.0 percent. Adjusted pretax income grew 33.1 percent to a record $63.6 million.
- Consolidated adjusted effective tax rate was 37.6 percent.
- Adjusted diluted earnings per common share increased 21.6 percent, to $1.52, on 33.6 percent higher adjusted net income of $39.7 million, both record results for the Company.
"We are delighted to announce Group 1's second quarter operating results which reflect double-digit revenue increases across all of our business sectors coupled with strong expense leverage, which delivered record earnings for our shareholders," said Earl J. Hesterberg, Group 1's president and chief executive officer. "As these record results demonstrate, we are beginning to reap the benefits of the significant process improvements and growth investments we have made since the recession."
For the six-month period ended June 30, 2013, the Company reported adjusted net income of $69 million, or $2.69 per diluted share, compared to adjusted net income of $52.9 million, or $2.23 per diluted share in the prior year period. Total revenue increased 20.7 percent to $4.3 billion for the six-month period ended June 30, 2013.
CORPORATE DEVELOPMENT
As previously announced during the second quarter, Group 1 acquired one dealership with estimated annual revenues of approximately $80.0 million and disposed of four dealerships that generated $176.7 million in trailing-twelve-month revenues. Additionally, on July 22, 2013, Group 1 completed the disposition of Miller Nissan, Inc., and Miller Infiniti Inc. These two dealerships, located in California, generated $107.2 million in trailing-twelve-month revenues. "In addition to our ongoing corporate growth efforts via acquisitions, we have continued to rebalance our U.S. dealership portfolio with the disposition of operations not generating an acceptable level of return for our shareholders," said Hesterberg. "Five of these dealership dispositions have occurred in California. Following the two dispositions made earlier this week, we expect no additional near-term disposals in the California market as our remaining seven dealerships are expected to generate positive shareholder returns."
SEGMENT RESULTS FOR SECOND QUARTER 2013 (year-over-year comparable basis)
United States:
Group 1's U.S. revenues were $1.9 billion, an increase of 7.1 percent. The revenue growth was primarily explained by unit sales increases of 5.9 percent in new vehicles and 5.6 percent in retail used vehicles, as well as an increase of 7.1 percent in parts and service revenue. The higher revenue drove gross profit growth of 7.8 percent, reflecting the higher new and used retail volumes, expanded parts and service margins of 50 basis points, and an F&I increase of 16.2 percent, or $121, to $1,351 per retail unit, which is another all-time record for the Company.
On a comparable basis, SG&A expenses as a percent of gross profit improved 250 basis points to 71.6 percent, operating margin expanded to 4.0 percent and pretax margin increased to 3.0 percent. Group 1's U.S. operations accounted for 80.6 percent of total revenues, 85.1 percent of total gross profit and 89.1 percent of the Company's adjusted pretax income.
United Kingdom:
Group 1's U.K. operations accounted for 8.9 percent of total revenues, roughly 7.0 percent of total gross profit and 6.0 percent of the Company's adjusted pretax income. Reflecting significant acquisition activity over the past year, total revenue increased 50.1 percent to $207.4 million, and gross profit increased 50.5 percent. Revenue growth was primarily driven by 68.1 percent and 103.4 percent increases in new and used vehicle retail unit sales, respectively.
On a comparable basis, SG&A expenses as a percent of gross profit improved 430 basis points to 78.2 percent.
Brazil:
Group 1's Brazil operations accounted for 10.5 percent of total revenues, 7.9 percent of total gross profit and 4.9 percent of the Company's adjusted pretax income. Gross profit was $27.1 million on revenues of $246.0 million. New vehicle sales were the primary revenue contributor at 76.1 percent, while new vehicles and parts and service were the primary gross profit contributors at 55.0 percent and 28.0 percent, respectively.
SG&A expenses as a percent of gross profit was at 80.5 percent, operating margin was 2.0 percent and pretax margin was 1.3 percent.
SECOND QUARTER EARNINGS CONFERENCE CALL
Group 1's senior management team will host a conference call to discuss the results later this morning at 10 a.m. ET.
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:
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Domestic:
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1-877-300-8521
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International:
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1-412-317-6026
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Conference ID:
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10031305
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A telephonic replay will be available following the call through July 31, 2013 at 11:59 p.m. ET by dialing:
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Domestic
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1-877-870-5176
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International:
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1-858-384-5517
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Replay Pin:
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105312
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Conference ID:
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10031305
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About Group 1 Automotive, Inc.
Group 1 owns and operates 139 automotive dealerships, 178 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.
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
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Group 1 Automotive, Inc.
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Consolidated Statements of Operations
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(Unaudited)
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(In thousands, except per share amounts)
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Three Months Ended June 30,
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2013
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2012
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% Change
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REVENUES:
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New vehicle retail sales
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$ 1,376,219
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$ 1,080,710
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27.3
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Used vehicle retail sales
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534,804
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456,234
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17.2
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Used vehicle wholesale sales
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83,316
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73,134
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13.9
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Parts and service
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260,950
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220,313
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18.4
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Finance and insurance
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79,821
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65,435
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22.0
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Total revenues
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2,335,110
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1,895,826
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23.2
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COST OF SALES:
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New vehicle retail sales
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1,295,854
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1,016,868
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27.4
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Used vehicle retail sales
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491,299
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417,388
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17.7
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Used vehicle wholesale sales
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82,804
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72,811
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13.7
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Parts and service
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123,879
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103,415
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19.8
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Total cost of sales
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1,993,836
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1,610,482
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23.8
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GROSS PROFIT
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341,274
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285,344
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19.6
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SELLING, GENERAL AND
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ADMINISTRATIVE EXPENSES
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251,159
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214,327
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17.2
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DEPRECIATION AND
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AMORTIZATION EXPENSE
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8,884
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7,742
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14.8
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ASSET IMPAIRMENTS
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609
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187
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225.7
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OPERATING INCOME
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80,622
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63,088
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27.8
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OTHER EXPENSE:
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Floorplan interest expense
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(10,873)
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(7,863)
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38.3
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Other interest expense, net
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(9,570)
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(9,190)
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4.1
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INCOME BEFORE INCOME TAXES
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60,179
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46,035
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30.7
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PROVISION FOR INCOME TAXES
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(22,791)
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(17,410)
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30.9
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NET INCOME
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$ 37,388
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$ 28,625
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30.6
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DILUTED INCOME PER SHARE
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$ 1.43
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$ 1.20
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19.2
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Weighted average dilutive common shares outstanding
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24,980
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22,513
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11.0
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Weighted average participating securities
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1,112
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1,317
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(15.6)
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Total weighted average shares outstanding
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26,092
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23,830
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9.5
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Six Months Ended June 30,
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2013
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2012
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% Change
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REVENUES:
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New vehicle retail sales
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$ 2,486,454
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$ 1,993,305
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24.7
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Used vehicle retail sales
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1,006,203
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871,208
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15.5
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Used vehicle wholesale sales
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157,867
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139,991
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12.8
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Parts and service
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498,460
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433,414
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15.0
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Finance and insurance
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149,958
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122,653
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22.3
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Total revenues
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4,298,942
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3,560,571
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20.7
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COST OF SALES:
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New vehicle retail sales
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2,343,453
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1,876,643
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24.9
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Used vehicle retail sales
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922,422
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795,965
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15.9
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Used vehicle wholesale sales
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154,933
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136,964
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13.1
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Parts and service
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236,371
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205,231
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15.2
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Total cost of sales
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3,657,179
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3,014,803
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21.3
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GROSS PROFIT
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641,763
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545,768
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17.6
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SELLING, GENERAL AND
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ADMINISTRATIVE EXPENSES
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484,592
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413,439
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17.2
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DEPRECIATION AND
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AMORTIZATION EXPENSE
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17,297
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14,978
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15.5
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ASSET IMPAIRMENTS
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609
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288
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111.5
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OPERATING INCOME
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139,265
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117,063
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19.0
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OTHER EXPENSE:
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Floorplan interest expense
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(20,237)
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(15,482)
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30.7
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Other interest expense, net
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(18,812)
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(18,230)
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3.2
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Other expense, net
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(789)
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-
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100.0
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INCOME BEFORE INCOME TAXES
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99,427
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83,351
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19.3
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PROVISION FOR INCOME TAXES
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(39,921)
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(31,609)
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26.3
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NET INCOME
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$ 59,506
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$ 51,742
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15.0
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DILUTED INCOME PER SHARE
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$ 2.32
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$ 2.18
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6.4
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Weighted average dilutive common shares outstanding
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24,544
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22,522
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9.0
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Weighted average participating securities
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1,093
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1,263
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(13.5)
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Total weighted average shares outstanding
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25,637
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23,785
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7.8
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Group 1 Automotive, Inc.
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Consolidated Balance Sheets
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(Dollars in thousands)
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June 30,
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December 31,
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2013
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2012
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% Change
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ASSETS:
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(Unaudited)
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CURRENT ASSETS:
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Cash and cash equivalents
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$ 10,852
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$ 4,650
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133.4
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Contracts in transit and vehicle receivables, net
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185,626
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204,396
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(9.2)
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Accounts and notes receivable, net
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132,513
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111,228
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19.1
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Inventories, net
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1,358,294
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1,194,288
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13.7
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Deferred income taxes
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22,072
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19,750
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11.8
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Prepaid expenses and other current assets
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21,443
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31,869
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(32.7)
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Total current assets
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1,730,800
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1,566,181
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10.5
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PROPERTY AND EQUIPMENT, net
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706,293
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667,768
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5.8
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GOODWILL AND INTANGIBLE FRANCHISE RIGHTS
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955,830
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778,442
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22.8
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OTHER ASSETS
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16,395
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10,624
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54.3
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Total assets
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$ 3,409,318
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$ 3,023,015
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12.8
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LIABILITIES AND STOCKHOLDERS' EQUITY:
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CURRENT LIABILITIES:
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Floorplan notes payable - credit facility and other
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$ 1,016,896
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$ 968,959
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4.9
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Offset account related to floorplan notes payable - credit facility
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(81,996)
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(112,261)
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(27.0)
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Floorplan notes payable - manufacturer affiliates
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301,670
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211,965
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42.3
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Current maturities of long-term debt and short-term financing
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24,338
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31,358
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(22.4)
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Accounts payable
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237,573
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167,439
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41.9
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Accrued expenses
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144,361
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128,118
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12.7
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Total current liabilities
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1,642,842
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1,395,578
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17.7
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2.25% CONVERTIBLE SENIOR NOTES (aggregate principal of $182,753 at June 30, 2013 and December 31, 2012)
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156,272
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152,363
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2.6
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3.00% CONVERTIBLE SENIOR NOTES (aggregate principal of $115,000 at June 30, 2013 and December 31, 2012)
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82,468
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80,706
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2.2
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MORTGAGE FACILITY, net of current maturities
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46,724
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53,643
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(12.9)
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OTHER REAL ESTATE RELATED AND LONG-TERM DEBT, net of current maturities
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217,971
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232,285
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(6.2)
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CAPITAL LEASE OBLIGATIONS RELATED TO REAL ESTATE, net of current maturities
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|
38,274
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|
36,019
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6.3
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DEFERRED INCOME TAXES
|
|
130,517
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|
94,130
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|
38.7
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LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES
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28,116
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|
43,089
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(34.7)
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OTHER LIABILITIES
|
|
44,810
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|
42,413
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5.7
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COMMITMENTS AND CONTINGENCIES
|
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TEMPORARY EQUITY - REDEEMABLE EQUITY PORTION OF THE 3.00% CONVERTIBLE SENIOR NOTES
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30,835
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32,505
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(5.1)
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STOCKHOLDERS' EQUITY:
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Common stock
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259
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|
258
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0.4
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Additional paid-in capital
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|
367,569
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|
332,836
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|
10.4
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Retained earnings
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729,869
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677,864
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7.7
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Accumulated other comprehensive loss
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(48,682)
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(33,057)
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47.3
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Treasury stock
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(58,526)
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(117,617)
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(50.2)
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Total stockholders' equity
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990,489
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860,284
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|
15.1
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Total liabilities and stockholders' equity
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|
$ 3,409,318
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$ 3,023,015
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12.8
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|
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Group 1 Automotive, Inc.
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Additional Information - Consolidated
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(Unaudited)
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|
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|
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Three Months Ended
|
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Six Months Ended
|
|
|
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June 30,
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June 30,
|
|
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2013 (%)
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2012 (%)
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2013 (%)
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2012 (%)
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NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
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Region
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Geographic Market
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East
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Massachusetts
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5.8
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9.7
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6.2
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10.2
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New Jersey
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3.9
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5.1
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4.3
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|
5.1
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Georgia
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3.4
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|
3.4
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|
3.8
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|
3.4
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New York
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2.8
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3.2
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|
2.8
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3.3
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Louisiana
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2.4
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2.5
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2.4
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2.6
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New Hampshire
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2.2
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3.0
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|
2.3
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|
2.9
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Mississippi
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|
1.6
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|
2.1
|
|
1.7
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|
2.1
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South Carolina
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|
1.4
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|
1.9
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|
1.5
|
|
1.8
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|
Florida
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|
1.2
|
|
1.2
|
|
1.3
|
|
1.0
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Alabama
|
|
0.8
|
|
1.0
|
|
0.8
|
|
1.0
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|
Maryland
|
|
0.5
|
|
0.6
|
|
0.5
|
|
0.7
|
|
|
|
26.0
|
|
33.7
|
|
27.6
|
|
34.1
|
|
|
|
|
|
|
|
|
|
|
|
West
|
Texas
|
|
31.2
|
|
36.0
|
|
32.6
|
|
36.8
|
|
California
|
|
10.7
|
|
14.4
|
|
11.9
|
|
14.5
|
|
Oklahoma
|
|
7.9
|
|
7.8
|
|
7.7
|
|
7.8
|
|
Kansas
|
|
2.6
|
|
1.6
|
|
2.5
|
|
1.4
|
|
|
|
52.4
|
|
59.8
|
|
54.7
|
|
60.5
|
|
|
|
|
|
|
|
|
|
|
|
International
|
Brazil
|
|
12.9
|
|
-
|
|
9.1
|
|
-
|
|
United Kingdom
|
|
8.7
|
|
6.5
|
|
8.6
|
|
5.4
|
|
|
|
100.0
|
|
100.0
|
|
100.0
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
NEW VEHICLE UNIT SALES BRAND MIX:
|
|
|
|
|
|
|
|
|
|
Toyota/Scion/Lexus
|
|
26.5
|
|
31.2
|
|
27.0
|
|
30.9
|
|
Honda/Acura
|
|
|
12.6
|
|
11.4
|
|
12.5
|
|
11.2
|
|
Ford/Lincoln
|
|
|
11.4
|
|
8.8
|
|
11.5
|
|
9.5
|
|
BMW/MINI
|
|
|
10.8
|
|
11.3
|
|
10.5
|
|
11.0
|
|
Nissan/Infiniti
|
|
|
10.4
|
|
10.8
|
|
10.5
|
|
11.8
|
|
Volkswagen/Audi/Porsche
|
|
6.3
|
|
6.6
|
|
6.5
|
|
5.4
|
|
Hyundai/Kia
|
|
|
4.6
|
|
3.1
|
|
4.5
|
|
2.9
|
|
Chevrolet/GMC/Buick/Cadillac
|
|
4.4
|
|
5.8
|
|
4.8
|
|
6.0
|
|
Mercedes Benz/smart/Sprinter
|
|
4.2
|
|
4.8
|
|
4.4
|
|
4.7
|
|
Chrysler/Dodge/Jeep/RAM
|
|
3.9
|
|
4.4
|
|
4.1
|
|
4.4
|
|
Other
|
|
|
4.9
|
|
1.8
|
|
3.7
|
|
2.2
|
|
|
|
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 June 30,
|
|
|
|
2013
|
|
2012
|
|
% Change
|
|
|
REVENUES:
|
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$ 1,078,607
|
|
$ 1,003,570
|
|
7.5
|
|
|
Used vehicle retail sales
|
|
448,574
|
|
420,735
|
|
6.6
|
|
|
Used vehicle wholesale sales
|
|
56,725
|
|
60,614
|
|
(6.4)
|
|
|
Total used
|
|
505,299
|
|
481,349
|
|
5.0
|
|
|
Parts and service
|
|
224,084
|
|
209,295
|
|
7.1
|
|
|
Finance and insurance
|
|
73,664
|
|
63,420
|
|
16.2
|
|
|
Total
|
|
$ 1,881,654
|
|
$ 1,757,634
|
|
7.1
|
|
|
|
|
|
|
|
|
|
|
GROSS MARGIN %:
|
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
5.4
|
|
5.8
|
|
|
|
|
Used vehicle retail sales
|
|
8.5
|
|
8.6
|
|
|
|
|
Used vehicle wholesale sales
|
|
0.4
|
|
1.0
|
|
|
|
|
Total used
|
|
7.6
|
|
7.7
|
|
|
|
|
Parts and service
|
|
53.5
|
|
53.0
|
|
|
|
|
Finance and insurance
|
|
100.0
|
|
100.0
|
|
|
|
|
Total
|
|
15.4
|
|
15.3
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT:
|
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$ 58,325
|
|
$ 58,334
|
|
(0.0)
|
|
|
Used vehicle retail sales
|
|
38,341
|
|
36,225
|
|
5.8
|
|
|
Used vehicle wholesale sales
|
|
248
|
|
614
|
|
(59.6)
|
|
|
Total used
|
|
38,589
|
|
36,839
|
|
4.8
|
|
|
Parts and service
|
|
119,898
|
|
110,974
|
|
8.0
|
|
|
Finance and insurance
|
|
73,664
|
|
63,420
|
|
16.2
|
|
|
Total
|
|
$ 290,476
|
|
$ 269,567
|
|
7.8
|
|
|
|
|
|
|
|
|
|
|
UNITS SOLD:
|
|
|
|
|
|
|
|
|
Retail new vehicles sold
|
|
32,589
|
|
30,780
|
|
5.9
|
|
|
Retail used vehicles sold
|
|
21,928
|
|
20,763
|
|
5.6
|
|
|
Wholesale used vehicles sold
|
|
9,940
|
|
10,005
|
|
(0.6)
|
|
|
Total used
|
|
31,868
|
|
30,768
|
|
3.6
|
|
|
|
|
|
|
|
|
|
|
AVERAGE RETAIL SALES PRICE:
|
|
|
|
|
|
|
|
New vehicle retail
|
|
$ 33,097
|
|
$ 32,605
|
|
1.5
|
|
|
Used vehicle retail
|
|
$ 20,457
|
|
$ 20,264
|
|
1.0
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT PER UNIT SOLD:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$ 1,790
|
|
$ 1,895
|
|
(5.5)
|
|
|
Used vehicle retail sales
|
|
1,748
|
|
1,745
|
|
0.2
|
|
|
Used vehicle wholesale sales
|
|
25
|
|
61
|
|
(59.0)
|
|
|
Total used
|
|
1,211
|
|
1,197
|
|
1.2
|
|
|
Finance and insurance (per retail unit)
|
$ 1,351
|
|
$ 1,230
|
|
9.8
|
|
|
OTHER: (1)
|
|
|
|
|
|
|
|
|
SG&A expenses
|
|
$ 207,977
|
|
$ 199,737
|
|
4.1
|
|
|
SG&A as % revenues
|
|
11.1
|
|
11.4
|
|
|
|
|
SG&A as % gross profit
|
|
71.6
|
|
74.1
|
|
|
|
|
Operating margin %
|
|
4.0
|
|
3.6
|
|
|
|
|
Pretax margin %
|
|
3.0
|
|
2.6
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE:
|
|
|
|
|
|
|
|
|
Floorplan interest
|
|
$ 8,645
|
|
$ 7,546
|
|
14.6
|
|
|
Floorplan assistance
|
|
(10,010)
|
|
(8,658)
|
|
15.6
|
|
|
Net floorplan income
|
|
$ 1,365
|
|
$ 1,112
|
|
22.8
|
|
|
Other interest expense, net
|
|
$ 9,301
|
|
$ 9,070
|
|
2.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
|
2013
|
|
2012
|
|
% Change
|
|
|
REVENUES:
|
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$ 2,041,239
|
|
$ 1,876,559
|
|
8.8
|
|
|
Used vehicle retail sales
|
|
866,913
|
|
813,008
|
|
6.6
|
|
|
Used vehicle wholesale sales
|
|
114,394
|
|
120,032
|
|
(4.7)
|
|
|
Total used
|
|
981,307
|
|
933,040
|
|
5.2
|
|
|
Parts and service
|
|
440,438
|
|
414,680
|
|
6.2
|
|
|
Finance and insurance
|
|
140,456
|
|
119,574
|
|
17.5
|
|
|
Total
|
|
$ 3,603,440
|
|
$ 3,343,853
|
|
7.8
|
|
|
|
|
|
|
|
|
|
|
GROSS MARGIN %:
|
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
5.4
|
|
5.8
|
|
|
|
|
Used vehicle retail sales
|
|
8.8
|
|
8.8
|
|
|
|
|
Used vehicle wholesale sales
|
|
2.1
|
|
2.7
|
|
|
|
|
Total used
|
|
8.0
|
|
8.0
|
|
|
|
|
Parts and service
|
|
53.3
|
|
52.6
|
|
|
|
|
Finance and insurance
|
|
100.0
|
|
100.0
|
|
|
|
|
Total
|
|
15.6
|
|
15.6
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT:
|
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$ 109,907
|
|
$ 108,100
|
|
1.7
|
|
|
Used vehicle retail sales
|
|
75,960
|
|
71,562
|
|
6.1
|
|
|
Used vehicle wholesale sales
|
|
2,373
|
|
3,214
|
|
(26.2)
|
|
|
Total used
|
|
78,333
|
|
74,776
|
|
4.8
|
|
|
Parts and service
|
|
234,721
|
|
218,035
|
|
7.7
|
|
|
Finance and insurance
|
|
140,457
|
|
119,573
|
|
17.5
|
|
|
Total
|
|
$ 563,418
|
|
$ 520,484
|
|
8.2
|
|
|
|
|
|
|
|
|
|
|
UNITS SOLD:
|
|
|
|
|
|
|
|
|
Retail new vehicles sold
|
|
61,367
|
|
57,563
|
|
6.6
|
|
|
Retail used vehicles sold
|
|
43,044
|
|
40,658
|
|
5.9
|
|
|
Wholesale used vehicles sold
|
|
19,597
|
|
19,309
|
|
1.5
|
|
|
Total used
|
|
62,641
|
|
59,967
|
|
4.5
|
|
|
|
|
|
|
|
|
|
|
AVERAGE RETAIL SALES PRICE:
|
|
|
|
|
|
|
|
New vehicle retail
|
|
$ 33,263
|
|
$ 32,600
|
|
2.0
|
|
|
Used vehicle retail
|
|
$ 20,140
|
|
$ 19,996
|
|
0.7
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT PER UNIT SOLD:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$ 1,791
|
|
$ 1,878
|
|
(4.6)
|
|
|
Used vehicle retail sales
|
|
1,765
|
|
1,760
|
|
0.3
|
|
|
Used vehicle wholesale sales
|
|
121
|
|
166
|
|
(27.1)
|
|
|
Total used
|
|
1,251
|
|
1,247
|
|
0.3
|
|
|
Finance and insurance (per retail unit)
|
$ 1,345
|
|
$ 1,217
|
|
10.5
|
|
|
|
|
|
|
|
|
|
|
OTHER: (1)
|
|
|
|
|
|
|
|
|
SG&A expenses
|
|
$ 412,068
|
|
$ 391,314
|
|
5.3
|
|
|
SG&A as % revenues
|
|
11.4
|
|
11.7
|
|
|
|
|
SG&A as % gross profit
|
|
73.1
|
|
75.2
|
|
|
|
|
Operating margin %
|
|
3.8
|
|
3.4
|
|
|
|
|
Pretax margin %
|
|
2.8
|
|
2.5
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE:
|
|
|
|
|
|
|
|
|
Floorplan interest
|
|
$ 16,941
|
|
$ 15,028
|
|
12.7
|
|
|
Floorplan assistance
|
|
(18,183)
|
|
(16,072)
|
|
13.1
|
|
|
Net floorplan income
|
|
$ 1,242
|
|
$ 1,044
|
|
19.0
|
|
|
Other interest expense, net
|
|
$ 18,341
|
|
$ 17,989
|
|
2.0
|
|
|
|
|
|
|
|
|
|
|
[1] These amounts have been adjusted to exclude the impact of certain items to provide additional information
regarding the performance of our operations and improve period-to-period comparability. Refer to our
Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.
|
|
|
|
|
Group 1 Automotive, Inc.
|
|
Additional Information - U.K.
|
|
(Unaudited)
|
|
(Dollars in thousands, except per unit amounts)
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
2013
|
|
2012
|
|
% Change
|
|
REVENUES:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$110,473
|
|
$ 77,139
|
|
43.2
|
|
Used vehicle retail sales
|
|
58,429
|
|
35,499
|
|
64.6
|
|
Used vehicle wholesale sales
|
|
17,958
|
|
12,520
|
|
43.4
|
|
Total used
|
|
76,387
|
|
48,019
|
|
59.1
|
|
Parts and service
|
|
17,024
|
|
11,018
|
|
54.5
|
|
Finance and insurance
|
|
3,552
|
|
2,016
|
|
76.2
|
|
Total
|
|
$207,436
|
|
$138,192
|
|
50.1
|
|
|
|
|
|
|
|
|
GROSS MARGIN %:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
6.5
|
|
7.1
|
|
|
|
Used vehicle retail sales
|
|
6.9
|
|
7.4
|
|
|
|
Used vehicle wholesale sales
|
|
(3.4)
|
|
(2.3)
|
|
|
|
Total used
|
|
4.5
|
|
4.9
|
|
|
|
Parts and service
|
|
56.4
|
|
53.8
|
|
|
|
Finance and insurance
|
|
100.0
|
|
100.0
|
|
|
|
Total
|
|
11.4
|
|
11.4
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$ 7,161
|
|
$ 5,506
|
|
30.1
|
|
Used vehicle retail sales
|
|
4,052
|
|
2,621
|
|
54.6
|
|
Used vehicle wholesale sales
|
|
(614)
|
|
(292)
|
|
110.3
|
|
Total used
|
|
3,438
|
|
2,329
|
|
47.6
|
|
Parts and service
|
|
9,594
|
|
5,924
|
|
62.0
|
|
Finance and insurance
|
|
3,551
|
|
2,017
|
|
76.1
|
|
Total
|
|
$ 23,744
|
|
$ 15,776
|
|
50.5
|
|
|
|
|
|
|
|
|
UNITS SOLD:
|
|
|
|
|
|
|
|
Retail new vehicles sold
|
|
3,605
|
|
2,144
|
|
68.1
|
|
Retail used vehicles sold
|
|
2,524
|
|
1,241
|
|
103.4
|
|
Wholesale used vehicles sold
|
|
2,251
|
|
1,239
|
|
81.7
|
|
Total used
|
|
4,775
|
|
2,480
|
|
92.5
|
|
|
|
|
|
|
|
|
AVERAGE RETAIL SALES PRICE:
|
|
|
|
|
|
|
New vehicle retail
|
|
$ 30,644
|
|
$ 35,979
|
|
(14.8)
|
|
Used vehicle retail
|
|
$ 23,149
|
|
$ 28,605
|
|
(19.1)
|
|
|
|
|
|
|
|
|
GROSS PROFIT PER UNIT SOLD:
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$ 1,986
|
|
$ 2,568
|
|
(22.7)
|
|
Used vehicle retail sales
|
|
1,605
|
|
2,112
|
|
(24.0)
|
|
Used vehicle wholesale sales
|
|
(273)
|
|
(236)
|
|
15.7
|
|
Total used
|
|
720
|
|
939
|
|
(23.3)
|
|
Finance and insurance (per retail unit)
|
$ 579
|
|
$ 596
|
|
(2.9)
|
|
OTHER:
|
|
|
|
|
|
|
|
SG&A expenses
|
|
$ 18,570
|
|
$ 13,011
|
|
42.7
|
|
SG&A as % revenues
|
|
9.0
|
|
9.4
|
|
|
|
SG&A as % gross profit
|
|
78.2
|
|
82.5
|
|
|
|
Operating margin %
|
|
2.2
|
|
1.6
|
|
|
|
Pretax margin %
|
|
1.8
|
|
1.3
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE:
|
|
|
|
|
|
|
|
Floorplan interest
|
|
$ 421
|
|
$ 317
|
|
32.8
|
|
Floorplan assistance
|
|
-
|
|
-
|
|
|
|
Net floorplan expense
|
|
$ 421
|
|
$ 317
|
|
32.8
|
|
Other interest expense, net
|
|
$ 293
|
|
$ 120
|
|
144.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
2013
|
|
2012
|
|
% Change
|
|
REVENUES:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$205,298
|
|
$116,746
|
|
75.9
|
|
Used vehicle retail sales
|
|
103,394
|
|
58,200
|
|
77.7
|
|
Used vehicle wholesale sales
|
|
31,722
|
|
19,958
|
|
58.9
|
|
Total used
|
|
135,116
|
|
78,158
|
|
72.9
|
|
Parts and service
|
|
31,795
|
|
18,734
|
|
69.7
|
|
Finance and insurance
|
|
6,305
|
|
3,079
|
|
104.8
|
|
Total
|
|
$378,514
|
|
$216,717
|
|
74.7
|
|
|
|
|
|
|
|
|
GROSS MARGIN %:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
6.7
|
|
7.3
|
|
|
|
Used vehicle retail sales
|
|
6.1
|
|
6.3
|
|
|
|
Used vehicle wholesale sales
|
|
(1.7)
|
|
(0.9)
|
|
|
|
Total used
|
|
4.2
|
|
4.5
|
|
|
|
Parts and service
|
|
53.7
|
|
54.2
|
|
|
|
Finance and insurance
|
|
100.0
|
|
100.0
|
|
|
|
Total
|
|
11.3
|
|
11.7
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$ 13,793
|
|
$ 8,562
|
|
61.1
|
|
Used vehicle retail sales
|
|
6,270
|
|
3,682
|
|
70.3
|
|
Used vehicle wholesale sales
|
|
(530)
|
|
(188)
|
|
181.9
|
|
Total used
|
|
5,740
|
|
3,494
|
|
64.3
|
|
Parts and service
|
|
17,078
|
|
10,149
|
|
68.3
|
|
Finance and insurance
|
|
6,304
|
|
3,078
|
|
104.8
|
|
Total
|
|
$ 42,915
|
|
$ 25,283
|
|
69.7
|
|
|
|
|
|
|
|
|
UNITS SOLD:
|
|
|
|
|
|
|
|
Retail new vehicles sold
|
|
6,432
|
|
3,291
|
|
95.4
|
|
Retail used vehicles sold
|
|
4,252
|
|
2,095
|
|
103.0
|
|
Wholesale used vehicles sold
|
|
3,694
|
|
1,929
|
|
91.5
|
|
Total used
|
|
7,946
|
|
4,024
|
|
97.5
|
|
|
|
|
|
|
|
|
AVERAGE RETAIL SALES PRICE:
|
|
|
|
|
|
|
New vehicle retail
|
|
$ 31,918
|
|
$ 35,474
|
|
(10.0)
|
|
Used vehicle retail
|
|
$ 24,317
|
|
$ 27,780
|
|
(12.5)
|
|
|
|
|
|
|
|
|
GROSS PROFIT PER UNIT SOLD:
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$ 2,144
|
|
$ 2,602
|
|
(17.6)
|
|
Used vehicle retail sales
|
|
1,475
|
|
1,758
|
|
(16.1)
|
|
Used vehicle wholesale sales
|
|
(143)
|
|
(97)
|
|
47.4
|
|
Total used
|
|
722
|
|
868
|
|
(16.8)
|
|
Finance and insurance (per retail unit)
|
$ 590
|
|
$ 571
|
|
3.3
|
|
|
|
|
|
|
|
|
OTHER: (1)
|
|
|
|
|
|
|
|
SG&A expenses
|
|
$ 34,464
|
|
$ 20,546
|
|
67.7
|
|
SG&A as % revenues
|
|
9.1
|
|
9.5
|
|
|
|
SG&A as % gross profit
|
|
80.3
|
|
81.3
|
|
|
|
Operating margin %
|
|
1.9
|
|
1.7
|
|
|
|
Pretax margin %
|
|
1.6
|
|
1.4
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE:
|
|
|
|
|
|
|
|
Floorplan interest
|
|
$ 727
|
|
$ 454
|
|
60.1
|
|
Floorplan assistance
|
|
-
|
|
-
|
|
|
|
Net floorplan expense
|
|
$ 727
|
|
$ 454
|
|
60.1
|
|
Other interest expense, net
|
|
$ 507
|
|
$ 241
|
|
110.4
|
|
|
|
|
|
|
|
|
[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 - Brazil
|
|
(Unaudited)
|
|
(Dollars in thousands, except per unit amounts)
|
|
|
Three Months Ended
June 30, 2013
|
|
|
|
|
|
REVENUES:
|
|
|
|
New vehicle retail sales
|
|
$ 187,139
|
|
Used vehicle retail sales
|
|
27,802
|
|
Used vehicle wholesale sales
|
|
8,633
|
|
Total used
|
|
36,435
|
|
Parts and service
|
|
19,841
|
|
Finance and insurance
|
|
2,605
|
|
Total
|
|
$ 246,020
|
|
|
|
|
GROSS MARGIN %:
|
|
|
|
New vehicle retail sales
|
|
8.0
|
|
Used vehicle retail sales
|
|
4.0
|
|
Used vehicle wholesale sales
|
|
10.2
|
|
Total used
|
|
5.5
|
|
Parts and service
|
|
38.2
|
|
Finance and insurance
|
|
100.0
|
|
Total
|
|
11.0
|
|
|
|
|
GROSS PROFIT:
|
|
|
|
New vehicle retail sales
|
|
$ 14,879
|
|
Used vehicle retail sales
|
|
1,113
|
|
Used vehicle wholesale sales
|
|
878
|
|
Total used
|
|
1,991
|
|
Parts and service
|
|
7,579
|
|
Finance and insurance
|
|
2,605
|
|
Total
|
|
$ 27,054
|
|
|
|
|
UNITS SOLD:
|
|
|
|
Retail new vehicles sold
|
|
5,337
|
|
Retail used vehicles sold
|
|
1,182
|
|
Wholesale used vehicles sold
|
|
881
|
|
Total used
|
|
2,063
|
|
|
|
|
AVERAGE RETAIL SALES PRICE:
|
|
|
|
New vehicle retail
|
|
$ 35,064
|
|
Used vehicle retail
|
|
$ 23,521
|
|
|
|
|
GROSS PROFIT PER UNIT SOLD:
|
|
|
|
New vehicle retail sales
|
|
$ 2,788
|
|
Used vehicle retail sales
|
|
942
|
|
Used vehicle wholesale sales
|
|
997
|
|
Total used
|
|
965
|
|
Finance and insurance (per retail unit)
|
|
$ 400
|
|
OTHER:
|
|
|
|
SG&A expenses
|
|
$ 21,769
|
|
SG&A as % revenues
|
|
8.8
|
|
SG&A as % gross profit
|
|
80.5
|
|
Operating margin %
|
|
2.0
|
|
Pretax margin %
|
|
1.3
|
|
|
|
|
INTEREST EXPENSE:
|
|
|
|
Floorplan interest
|
|
$ 1,807
|
|
Floorplan assistance
|
|
-
|
|
Net floorplan expense
|
|
$ 1,807
|
|
|
|
|
|
Six Months Ended
June 30, 2013 (2)
|
|
|
|
|
|
REVENUES:
|
|
|
|
New vehicle retail sales
|
|
$ 239,917
|
|
Used vehicle retail sales
|
|
35,897
|
|
Used vehicle wholesale sales
|
|
11,750
|
|
Total used
|
|
47,647
|
|
Parts and service
|
|
26,227
|
|
Finance and insurance
|
|
3,197
|
|
Total
|
|
$ 316,988
|
|
|
|
|
GROSS MARGIN %:
|
|
|
|
New vehicle retail sales
|
|
8.0
|
|
Used vehicle retail sales
|
|
4.3
|
|
Used vehicle wholesale sales
|
|
9.3
|
|
Total used
|
|
5.5
|
|
Parts and service
|
|
39.2
|
|
Finance and insurance
|
|
100.0
|
|
Total
|
|
11.2
|
|
|
|
|
GROSS PROFIT:
|
|
|
|
New vehicle retail sales
|
|
$ 19,301
|
|
Used vehicle retail sales
|
|
1,552
|
|
Used vehicle wholesale sales
|
|
1,090
|
|
Total used
|
|
2,642
|
|
Parts and service
|
|
10,290
|
|
Finance and insurance
|
|
3,197
|
|
Total
|
|
$ 35,430
|
|
|
|
|
UNITS SOLD:
|
|
|
|
Retail new vehicles sold
|
|
6,828
|
|
Retail used vehicles sold
|
|
1,576
|
|
Wholesale used vehicles sold
|
|
1,116
|
|
Total used
|
|
2,692
|
|
|
|
|
AVERAGE RETAIL SALES PRICE:
|
|
|
|
New vehicle retail
|
|
$ 35,137
|
|
Used vehicle retail
|
|
$ 22,777
|
|
|
|
|
GROSS PROFIT PER UNIT SOLD:
|
|
|
|
New vehicle retail sales
|
|
$ 2,827
|
|
Used vehicle retail sales
|
|
985
|
|
Used vehicle wholesale sales
|
|
977
|
|
Total used
|
|
981
|
|
Finance and insurance (per retail unit)
|
|
$ 380
|
|
|
|
|
OTHER: (1)
|
|
|
|
SG&A expenses
|
|
$ 28,471
|
|
SG&A as % revenues
|
|
9.0
|
|
SG&A as % gross profit
|
|
80.4
|
|
Operating margin %
|
|
2.0
|
|
Pretax margin %
|
|
1.2
|
|
|
|
|
INTEREST EXPENSE:
|
|
|
|
Floorplan interest
|
|
$ 2,569
|
|
Floorplan assistance
|
|
-
|
|
Net floorplan expense
|
|
$ 2,569
|
|
|
|
|
[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 June 30, 2013.
|
|
|
|
|
Group 1 Automotive, Inc.
|
|
Additional Information - Consolidated
|
|
(Unaudited)
|
|
(Dollars in thousands, except per unit amounts)
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
2013
|
|
2012
|
|
% Change
|
|
REVENUES:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$ 1,376,219
|
|
$ 1,080,710
|
|
27.3
|
|
Used vehicle retail sales
|
|
534,804
|
|
456,234
|
|
17.2
|
|
Used vehicle wholesale sales
|
|
83,316
|
|
73,134
|
|
13.9
|
|
Total used
|
|
618,120
|
|
529,368
|
|
16.8
|
|
Parts and service
|
|
260,950
|
|
220,313
|
|
18.4
|
|
Finance and insurance
|
|
79,821
|
|
65,435
|
|
22.0
|
|
Total
|
|
$ 2,335,110
|
|
$ 1,895,826
|
|
23.2
|
|
|
|
|
|
|
|
|
GROSS MARGIN %:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
5.8
|
|
5.9
|
|
|
|
Used vehicle retail sales
|
|
8.1
|
|
8.5
|
|
|
|
Used vehicle wholesale sales
|
|
0.6
|
|
0.4
|
|
|
|
Total used
|
|
7.1
|
|
7.4
|
|
|
|
Parts and service
|
|
52.5
|
|
53.1
|
|
|
|
Finance and insurance
|
|
100.0
|
|
100.0
|
|
|
|
Total
|
|
14.6
|
|
15.1
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$ 80,365
|
|
$ 63,842
|
|
25.9
|
|
Used vehicle retail sales
|
|
43,505
|
|
38,846
|
|
12.0
|
|
Used vehicle wholesale sales
|
|
512
|
|
323
|
|
58.5
|
|
Total used
|
|
44,017
|
|
39,169
|
|
12.4
|
|
Parts and service
|
|
137,071
|
|
116,898
|
|
17.3
|
|
Finance and insurance
|
|
79,821
|
|
65,435
|
|
22.0
|
|
Total
|
|
$ 341,274
|
|
$ 285,344
|
|
19.6
|
|
|
|
|
|
|
|
|
UNITS SOLD:
|
|
|
|
|
|
|
|
Retail new vehicles sold
|
|
41,531
|
|
32,924
|
|
26.1
|
|
Retail used vehicles sold
|
|
25,634
|
|
22,004
|
|
16.5
|
|
Wholesale used vehicles sold
|
|
13,072
|
|
11,244
|
|
16.3
|
|
Total used
|
|
38,706
|
|
33,248
|
|
16.4
|
|
|
|
|
|
|
|
|
AVERAGE RETAIL SALES PRICE:
|
|
|
|
|
|
|
|
New vehicle retail
|
|
$ 33,137
|
|
$ 32,824
|
|
1.0
|
|
Used vehicle retail
|
|
$ 20,863
|
|
$ 20,734
|
|
0.6
|
|
|
|
|
|
|
|
|
GROSS PROFIT PER UNIT SOLD:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$ 1,935
|
|
$ 1,939
|
|
(0.2)
|
|
Used vehicle retail sales
|
|
1,697
|
|
1,765
|
|
(3.9)
|
|
Used vehicle wholesale sales
|
|
39
|
|
29
|
|
34.5
|
|
Total used
|
|
1,137
|
|
1,178
|
|
(3.5)
|
|
Finance and insurance (per retail unit)
|
$ 1,188
|
|
$ 1,191
|
|
(0.3)
|
|
OTHER: (1)
|
|
|
|
|
|
|
|
SG&A expenses
|
|
$ 248,316
|
|
$ 212,748
|
|
16.7
|
|
SG&A as % revenues
|
|
10.6
|
|
11.2
|
|
|
|
SG&A as % gross profit
|
|
72.8
|
|
74.6
|
|
|
|
Operating margin %
|
|
3.6
|
|
3.4
|
|
|
|
Pretax margin %
|
|
2.7
|
|
2.5
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE:
|
|
|
|
|
|
|
|
Floorplan interest
|
|
$ 10,873
|
|
$ 7,863
|
|
38.3
|
|
Floorplan assistance
|
|
(10,010)
|
|
(8,658)
|
|
15.6
|
|
Net floorplan income (expense)
|
|
$ (863)
|
|
$ 795
|
|
(208.6)
|
|
Other interest expense, net
|
|
$ 9,570
|
|
$ 9,190
|
|
4.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
2013
|
|
2012
|
|
% Change
|
|
REVENUES:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$ 2,486,454
|
|
$ 1,993,305
|
|
24.7
|
|
Used vehicle retail sales
|
|
1,006,203
|
|
871,208
|
|
15.5
|
|
Used vehicle wholesale sales
|
|
157,867
|
|
139,991
|
|
12.8
|
|
Total used
|
|
1,164,070
|
|
1,011,199
|
|
15.1
|
|
Parts and service
|
|
498,460
|
|
433,414
|
|
15.0
|
|
Finance and insurance
|
|
149,958
|
|
122,653
|
|
22.3
|
|
Total
|
|
$ 4,298,942
|
|
$ 3,560,571
|
|
20.7
|
|
|
|
|
|
|
|
|
GROSS MARGIN %:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
5.8
|
|
5.9
|
|
|
|
Used vehicle retail sales
|
|
8.3
|
|
8.6
|
|
|
|
Used vehicle wholesale sales
|
|
1.9
|
|
2.2
|
|
|
|
Total used
|
|
7.4
|
|
7.7
|
|
|
|
Parts and service
|
|
52.6
|
|
52.6
|
|
|
|
Finance and insurance
|
|
100.0
|
|
100.0
|
|
|
|
Total
|
|
14.9
|
|
15.3
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$ 143,000
|
|
$ 116,662
|
|
22.6
|
|
Used vehicle retail sales
|
|
83,781
|
|
75,243
|
|
11.3
|
|
Used vehicle wholesale sales
|
|
2,934
|
|
3,027
|
|
(3.1)
|
|
Total used
|
|
86,715
|
|
78,270
|
|
10.8
|
|
Parts and service
|
|
262,089
|
|
228,183
|
|
14.9
|
|
Finance and insurance
|
|
149,959
|
|
122,653
|
|
22.3
|
|
Total
|
|
$ 641,763
|
|
$ 545,768
|
|
17.6
|
|
|
|
|
|
|
|
|
UNITS SOLD:
|
|
|
|
|
|
|
|
Retail new vehicles sold
|
|
74,627
|
|
60,854
|
|
22.6
|
|
Retail used vehicles sold
|
|
48,872
|
|
42,753
|
|
14.3
|
|
Wholesale used vehicles sold
|
|
24,407
|
|
21,238
|
|
14.9
|
|
Total used
|
|
73,279
|
|
63,991
|
|
14.5
|
|
|
|
|
|
|
|
|
AVERAGE RETAIL SALES PRICE:
|
|
|
|
|
|
|
|
New vehicle retail
|
|
$ 33,318
|
|
$ 32,756
|
|
1.7
|
|
Used vehicle retail
|
|
$ 20,589
|
|
$ 20,378
|
|
1.0
|
|
|
|
|
|
|
|
|
GROSS PROFIT PER UNIT SOLD:
|
|
|
|
|
|
|
|
New vehicle retail sales
|
|
$ 1,916
|
|
$ 1,917
|
|
(0.1)
|
|
Used vehicle retail sales
|
|
1,714
|
|
1,760
|
|
(2.6)
|
|
Used vehicle wholesale sales
|
|
120
|
|
143
|
|
(16.1)
|
|
Total used
|
|
1,183
|
|
1,223
|
|
(3.3)
|
|
Finance and insurance (per retail unit)
|
$ 1,214
|
|
$ 1,184
|
|
2.5
|
|
|
|
|
|
|
|
|
OTHER: (1)
|
|
|
|
|
|
|
|
SG&A expenses
|
|
$ 475,003
|
|
$ 411,860
|
|
15.3
|
|
SG&A as % revenues
|
|
11.0
|
|
11.6
|
|
|
|
SG&A as % gross profit
|
|
74.0
|
|
75.5
|
|
|
|
Operating margin %
|
|
3.5
|
|
3.3
|
|
|
|
Pretax margin %
|
|
2.6
|
|
2.4
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE:
|
|
|
|
|
|
|
|
Floorplan interest
|
|
$ 20,237
|
|
$ 15,482
|
|
30.7
|
|
Floorplan assistance
|
|
(18,183)
|
|
(16,072)
|
|
13.1
|
|
Net floorplan income (expense)
|
|
$ (2,054)
|
|
$ 590
|
|
(448.1)
|
|
Other interest expense, net
|
|
$ 18,812
|
|
$ 18,230
|
|
3.2
|
|
|
|
|
|
|
|
|
[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 June 30,
|
|
|
2013
|
|
2012
|
|
% Change
|
|
REVENUES:
|
|
|
|
|
|
|
New vehicle retail sales
|
$ 1,117,203
|
|
$ 1,047,135
|
|
6.7
|
|
Used vehicle retail sales
|
466,996
|
|
441,638
|
|
5.7
|
|
Used vehicle wholesale sales
|
67,987
|
|
70,140
|
|
(3.1)
|
|
Total used
|
534,983
|
|
511,778
|
|
4.5
|
|
Parts and service
|
231,110
|
|
212,324
|
|
8.8
|
|
Finance and insurance
|
73,646
|
|
63,851
|
|
15.3
|
|
Total
|
$ 1,956,942
|
|
$ 1,835,088
|
|
6.6
|
|
|
|
|
|
|
|
|
GROSS MARGIN %:
|
|
|
|
|
|
|
New vehicle retail sales
|
5.5
|
|
5.9
|
|
|
|
Used vehicle retail sales
|
8.4
|
|
8.6
|
|
|
|
Used vehicle wholesale sales
|
0.4
|
|
0.6
|
|
|
|
Total used
|
7.4
|
|
7.5
|
|
|
|
Parts and service
|
53.5
|
|
53.0
|
|
|
|
Finance and insurance
|
100.0
|
|
100.0
|
|
|
|
Total
|
15.3
|
|
15.1
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT:
|
|
|
|
|
|
|
New vehicle retail sales
|
$ 61,974
|
|
$ 62,216
|
|
(0.4)
|
|
Used vehicle retail sales
|
39,150
|
|
37,783
|
|
3.6
|
|
Used vehicle wholesale sales
|
241
|
|
403
|
|
(40.2)
|
|
Total used
|
39,391
|
|
38,186
|
|
3.2
|
|
Parts and service
|
123,578
|
|
112,529
|
|
9.8
|
|
Finance and insurance
|
73,646
|
|
63,851
|
|
15.3
|
|
Total
|
$ 298,589
|
|
$ 276,782
|
|
7.9
|
|
|
|
|
|
|
|
|
UNITS SOLD:
|
|
|
|
|
|
|
Retail new vehicles sold
|
33,345
|
|
31,715
|
|
5.1
|
|
Retail used vehicles sold
|
22,106
|
|
21,209
|
|
4.2
|
|
Wholesale used vehicles sold
|
10,786
|
|
10,662
|
|
1.2
|
|
Total used
|
32,892
|
|
31,871
|
|
3.2
|
|
|
|
|
|
|
|
|
AVERAGE RETAIL SALES PRICE:
|
|
|
|
|
|
|
New vehicle retail
|
$ 33,504
|
|
$ 33,017
|
|
1.5
|
|
Used vehicle retail
|
$ 21,125
|
|
$ 20,823
|
|
1.5
|
|
|
|
|
|
|
|
|
GROSS PROFIT PER UNIT SOLD:
|
|
|
|
|
|
|
New vehicle retail sales
|
$ 1,859
|
|
$ 1,962
|
|
(5.2)
|
|
Used vehicle retail sales
|
1,771
|
|
1,781
|
|
(0.6)
|
|
Used vehicle wholesale sales
|
22
|
|
38
|
|
(42.1)
|
|
Total used
|
1,198
|
|
1,198
|
|
-
|
|
Finance and insurance (per retail unit)
|
$ 1,328
|
|
$ 1,206
|
|
10.1
|
|
OTHER: (2)
|
|
|
|
|
|
|
SG&A expenses
|
$ 212,448
|
|
$ 204,004
|
|
4.1
|
|
SG&A as % revenues
|
10.9
|
|
11.1
|
|
|
|
SG&A as % gross profit
|
71.2
|
|
73.7
|
|
|
|
Operating margin %
|
4.0
|
|
3.6
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
2013
|
|
2012
|
|
% Change
|
|
REVENUES:
|
|
|
|
|
|
|
New vehicle retail sales
|
$ 2,084,535
|
|
$ 1,936,297
|
|
7.7
|
|
Used vehicle retail sales
|
887,462
|
|
846,603
|
|
4.8
|
|
Used vehicle wholesale sales
|
130,143
|
|
134,530
|
|
(3.3)
|
|
Total used
|
1,017,605
|
|
981,133
|
|
3.7
|
|
Parts and service
|
450,751
|
|
420,751
|
|
7.1
|
|
Finance and insurance
|
139,109
|
|
119,940
|
|
16.0
|
|
Total
|
$ 3,692,000
|
|
$ 3,458,121
|
|
6.8
|
|
|
|
|
|
|
|
|
GROSS MARGIN %:
|
|
|
|
|
|
|
New vehicle retail sales
|
5.5
|
|
5.9
|
|
|
|
Used vehicle retail sales
|
8.5
|
|
8.7
|
|
|
|
Used vehicle wholesale sales
|
1.9
|
|
2.3
|
|
|
|
Total used
|
7.7
|
|
7.8
|
|
|
|
Parts and service
|
53.1
|
|
52.6
|
|
|
|
Finance and insurance
|
100.0
|
|
100.0
|
|
|
|
Total
|
15.5
|
|
15.4
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT:
|
|
|
|
|
|
|
New vehicle retail sales
|
$ 114,256
|
|
$ 113,779
|
|
0.4
|
|
Used vehicle retail sales
|
75,442
|
|
73,396
|
|
2.8
|
|
Used vehicle wholesale sales
|
2,415
|
|
3,069
|
|
(21.3)
|
|
Total used
|
77,857
|
|
76,465
|
|
1.8
|
|
Parts and service
|
239,569
|
|
221,325
|
|
8.2
|
|
Finance and insurance
|
139,109
|
|
119,940
|
|
16.0
|
|
Total
|
$ 570,791
|
|
$ 531,509
|
|
7.4
|
|
|
|
|
|
|
|
|
UNITS SOLD:
|
|
|
|
|
|
|
Retail new vehicles sold
|
61,980
|
|
58,791
|
|
5.4
|
|
Retail used vehicles sold
|
42,776
|
|
41,402
|
|
3.3
|
|
Wholesale used vehicles sold
|
20,539
|
|
20,180
|
|
1.8
|
|
Total used
|
63,315
|
|
61,582
|
|
2.8
|
|
|
|
|
|
|
|
|
AVERAGE RETAIL SALES PRICE:
|
|
|
|
|
|
|
New vehicle retail
|
$ 33,632
|
|
$ 32,935
|
|
2.1
|
|
Used vehicle retail
|
$ 20,747
|
|
$ 20,448
|
|
1.5
|
|
|
|
|
|
|
|
|
GROSS PROFIT PER UNIT SOLD:
|
|
|
|
|
|
|
New vehicle retail sales
|
$ 1,843
|
|
$ 1,935
|
|
(4.8)
|
|
Used vehicle retail sales
|
1,764
|
|
1,773
|
|
(0.5)
|
|
Used vehicle wholesale sales
|
118
|
|
152
|
|
(22.4)
|
|
Total used
|
1,230
|
|
1,242
|
|
(1.0)
|
|
Finance and insurance (per retail unit)
|
$ 1,328
|
|
$ 1,197
|
|
10.9
|
|
|
|
|
|
|
|
|
OTHER: (2)
|
|
|
|
|
|
|
SG&A expenses
|
$ 415,849
|
|
$ 397,500
|
|
4.6
|
|
SG&A as % revenues
|
11.3
|
|
11.5
|
|
|
|
SG&A as % gross profit
|
72.9
|
|
74.8
|
|
|
|
Operating margin %
|
3.8
|
|
3.4
|
|
|
|
|
|
|
|
|
|
|
[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 - U.S.
|
|
(Unaudited)
|
|
(Dollars in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
2013
|
|
2012
|
|
% Change
|
|
SG&A RECONCILIATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
$ 210,820
|
|
$ 201,316
|
|
4.7
|
|
Pre-tax adjustments:
|
|
|
|
|
|
|
Catastrophic events
|
(11,092)
|
|
(2,650)
|
|
|
|
Net gain on dealership dispositions
|
8,449
|
|
-
|
|
|
|
Net gain on real estate transactions
|
-
|
|
1,071
|
|
|
|
Lease termination
|
(200)
|
|
-
|
|
|
|
Adjusted SG&A (1)
|
$ 207,977
|
|
$ 199,737
|
|
4.1
|
|
|
|
|
|
|
|
|
SG&A AS % REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
11.2
|
|
11.5
|
|
|
|
Adjusted (1)
|
11.1
|
|
11.4
|
|
|
|
|
|
|
|
|
|
|
SG&A AS % GROSS PROFIT:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
72.6
|
|
74.7
|
|
|
|
Adjusted (1)
|
71.6
|
|
74.1
|
|
|
|
|
|
|
|
|
|
|
OPERATING MARGIN %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
3.8
|
|
3.5
|
|
|
|
Adjusted (1), (2)
|
4.0
|
|
3.6
|
|
|
|
|
|
|
|
|
|
|
PRETAX MARGIN %:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
2.8
|
|
2.5
|
|
|
|
Adjusted (1), (2)
|
3.0
|
|
2.6
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
2013
|
|
2012
|
|
% Change
|
|
SG&A RECONCILIATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
$ 420,304
|
|
$ 392,893
|
|
7.0
|
|
Pre-tax adjustments:
|
|
|
|
|
|
|
Acquisition costs
|
(5,159)
|
|
-
|
|
|
|
Catastrophic events
|
(11,900)
|
|
(2,650)
|
|
|
|
Net gain on dealership dispositions
|
9,023
|
|
-
|
|
|
|
Net gain on real estate transactions
|
-
|
|
1,071
|
|
|
|
Lease termination
|
(200)
|
|
-
|
|
|
|
Adjusted SG&A (1)
|
$ 412,068
|
|
$ 391,314
|
|
5.3
|
|
|
|
|
|
|
|
|
SG&A AS % REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
11.7
|
|
11.7
|
|
|
|
Adjusted (1)
|
11.4
|
|
11.7
|
|
|
|
|
|
|
|
|
|
|
SG&A AS % OF GROSS PROFIT:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
74.6
|
|
75.5
|
|
|
|
Adjusted (1)
|
73.1
|
|
75.2
|
|
|
|
|
|
|
|
|
|
|
OPERATING MARGIN %:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
3.5
|
|
3.4
|
|
|
|
Adjusted (1), (2)
|
3.8
|
|
3.4
|
|
|
|
|
|
|
|
|
|
|
PRETAX MARGIN %:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
2.5
|
|
2.4
|
|
|
|
Adjusted (1), (2)
|
2.8
|
|
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 non-cash asset impairment charges of $609
for the three and six months ended June 30, 2013, and $187 for the three and six months ended June 30, 2012.
|
|
|
|
|
Group 1 Automotive, Inc.
|
|
Reconciliation of Certain Non-GAAP Financial Measures - U.K.
|
|
(Unaudited)
|
|
(Dollars in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
2013
|
|
2012
|
|
% Change
|
|
SG&A RECONCILIATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
$ 34,606
|
|
$ 20,546
|
|
68.4
|
|
Pre-tax adjustments:
|
|
|
|
|
|
|
Acquisition costs
|
(142)
|
|
-
|
|
|
|
Adjusted SG&A (1)
|
$ 34,464
|
|
$ 20,546
|
|
67.7
|
|
|
|
|
|
|
|
|
SG&A AS % REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
9.1
|
|
9.5
|
|
|
|
Adjusted (1)
|
9.1
|
|
9.5
|
|
|
|
|
|
|
|
|
|
|
SG&A AS % OF GROSS PROFIT:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
80.6
|
|
81.3
|
|
|
|
Adjusted (1)
|
80.3
|
|
81.3
|
|
|
|
|
|
|
|
|
|
|
OPERATING MARGIN %:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
1.9
|
|
1.7
|
|
|
|
Adjusted (1), (2)
|
1.9
|
|
1.7
|
|
|
|
|
|
|
|
|
|
|
PRETAX MARGIN %:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
1.5
|
|
1.4
|
|
|
|
Adjusted (1), (2)
|
1.6
|
|
1.4
|
|
|
|
|
|
|
|
|
|
|
[1]
|
We have included certain non-GAAP financial measures as defined under SEC rules,
which exclude certain items. These adjusted measures are not measures of financial performance
under GAAP. As required by SEC rules, we provide reconciliations of these adjusted measures to
the most directly comparable GAAP measures. We believe that these adjusted financial measures are
relevant and useful to investors because they improve the transparency of our disclosure, provide a
meaningful presentation of results from our core business operations and improve period-to-period
comparability of our results from our core business operations.
|
|
|
|
[2]
|
Excludes the impact of SG&A reconciling items above.
|
|
|
|
|
Group 1 Automotive, Inc.
|
|
Reconciliation of Certain Non-GAAP Financial Measures - Brazil
|
|
(Unaudited)
|
|
(Dollars in thousands, except per share amounts)
|
|
|
|
|
|
Six Months Ended
June 30, 2013 (3)
|
|
|
|
|
|
SG&A RECONCILIATION:
|
|
|
|
|
|
As reported
|
$ 29,682
|
|
Pre-tax adjustments:
|
|
|
Acquisition costs
|
(1,211)
|
|
Adjusted SG&A (1)
|
$ 28,471
|
|
|
|
|
SG&A AS % REVENUES:
|
|
|
|
|
|
Unadjusted
|
9.4
|
|
Adjusted (1)
|
9.0
|
|
|
|
|
SG&A AS % OF GROSS PROFIT:
|
|
|
|
|
|
Unadjusted
|
83.8
|
|
Adjusted (1)
|
80.4
|
|
|
|
|
OPERATING MARGIN %:
|
|
|
|
|
|
Unadjusted
|
1.6
|
|
Adjusted (1), (2)
|
2.0
|
|
|
|
|
PRETAX MARGIN %:
|
|
|
|
|
|
Unadjusted
|
0.6
|
|
Adjusted (1), (4)
|
1.2
|
|
|
|
|
[1]
|
We have included certain non-GAAP financial measures as defined under SEC rules,
which exclude certain items. These adjusted measures are not measures of financial
performance under GAAP. As required by SEC rules, we provide reconciliations of these
adjusted measures to the most directly comparable GAAP measures. We believe that these
adjusted financial measures are relevant and useful to investors because they improve the
transparency of our disclosure, provide a meaningful presentation of results from our core business
operations and improve period-to-period comparability of our results from our core business operations.
|
|
|
|
[2]
|
Excludes the impact of SG&A reconciling items above.
|
|
|
|
[3]
|
Results are for the period from the date of acquisition (February 28, 2013) through June 30, 2013.
|
|
|
|
[4]
|
Excludes the impact of SG&A reconciling items above, as well as the other expense of $789,
for the period from acquisition through June 30, 2013.
|
|
|
|
|
Group 1 Automotive, Inc.
|
|
Reconciliation of Certain Non-GAAP Financial Measures - Consolidated
|
|
(Unaudited)
|
|
(Dollars in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
NET INCOME RECONCILIATION:
|
2013
|
|
2012
|
|
% Change
|
|
|
|
|
|
|
|
|
As reported
|
$ 37,388
|
|
$ 28,625
|
|
30.6
|
|
After-tax adjustments:
|
|
|
|
|
|
|
Catastrophic events (3)
|
6,757
|
|
1,658
|
|
|
|
Net gain on dealership dispositions (4)
|
(4,909)
|
|
-
|
|
|
|
Net gain on real estate transactions (10)
|
-
|
|
(659)
|
|
|
|
Lease termination (5)
|
124
|
|
-
|
|
|
|
Non-cash impairment (6)
|
369
|
|
115
|
|
|
|
Adjusted net income (1)
|
$ 39,729
|
|
$ 29,739
|
|
33.6
|
|
|
|
|
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED
|
|
|
|
|
|
|
COMMON SHARES RECONCILIATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
|
$ 39,729
|
|
$ 29,739
|
|
33.6
|
|
Less: Adjusted earnings allocated to participating securities
|
1,692
|
|
1,637
|
|
3.4
|
|
Adjusted net income available to diluted common shares
|
$ 38,037
|
|
$ 28,102
|
|
35.4
|
|
|
|
|
|
|
|
|
DILUTED INCOME PER COMMON SHARE RECONCILIATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
$ 1.43
|
|
$ 1.20
|
|
19.2
|
|
After-tax adjustments:
|
|
|
|
|
|
|
Catastrophic events
|
0.26
|
|
0.07
|
|
|
|
Net gain on dealership dispositions
|
(0.19)
|
|
-
|
|
|
|
Net gain on real estate transactions
|
-
|
|
(0.03)
|
|
|
|
Lease termination
|
0.01
|
|
-
|
|
|
|
Non-cash impairment
|
0.01
|
|
0.01
|
|
|
|
Adjusted diluted income per share (1)
|
$ 1.52
|
|
$ 1.25
|
|
21.6
|
|
|
|
|
|
|
|
|
SG&A RECONCILIATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
$ 251,159
|
|
$ 214,327
|
|
17.2
|
|
Pre-tax adjustments:
|
|
|
|
|
|
|
Catastrophic events
|
(11,092)
|
|
(2,650)
|
|
|
|
Net gain on dealership dispositions
|
8,449
|
|
-
|
|
|
|
Net gain on real estate transactions
|
-
|
|
1,071
|
|
|
|
Lease termination
|
(200)
|
|
-
|
|
|
|
Adjusted SG&A (1)
|
$ 248,316
|
|
$ 212,748
|
|
16.7
|
|
|
|
|
|
|
|
|
SG&A AS % REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
10.8
|
|
11.3
|
|
|
|
Adjusted (1)
|
10.6
|
|
11.2
|
|
|
|
|
|
|
|
|
|
|
SG&A AS % GROSS PROFIT:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
73.6
|
|
75.1
|
|
|
|
Adjusted (1)
|
72.8
|
|
74.6
|
|
|
|
|
|
|
|
|
|
|
OPERATING MARGIN %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
3.5
|
|
3.3
|
|
|
|
Adjusted (1), (7)
|
3.6
|
|
3.4
|
|
|
|
|
|
|
|
|
|
|
PRETAX MARGIN %:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
2.6
|
|
2.4
|
|
|
|
Adjusted (1), (8)
|
2.7
|
|
2.5
|
|
|
|
|
|
|
|
|
|
|
SAME STORE SG&A RECONCILIATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
$ 223,740
|
|
$ 207,158
|
|
8.0
|
|
Pre-tax adjustments:
|
|
|
|
|
|
|
Catastrophic events
|
(11,092)
|
|
(2,650)
|
|
|
|
Net gain on real estate transactions
|
-
|
|
(504)
|
|
|
|
Lease termination
|
(200)
|
|
-
|
|
|
|
Adjusted Same Store SG&A (1)
|
$ 212,448
|
|
$ 204,004
|
|
4.1
|
|
|
|
|
|
|
|
|
SAME STORE SG&A AS % REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
11.4
|
|
11.3
|
|
|
|
Adjusted (1)
|
10.9
|
|
11.1
|
|
|
|
|
|
|
|
|
|
|
SAME STORE SG&A AS % GROSS PROFIT:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
74.9
|
|
74.8
|
|
|
|
Adjusted (1)
|
71.2
|
|
73.7
|
|
|
|
|
|
|
|
|
|
|
SAME STORE OPERATING MARGIN %:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
3.4
|
|
3.4
|
|
|
|
Adjusted (1), (9)
|
4.0
|
|
3.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
NET INCOME RECONCILIATION:
|
2013
|
|
2012
|
|
% Change
|
|
|
|
|
|
|
|
|
As reported
|
$ 59,506
|
|
$ 51,742
|
|
15.0
|
|
After-tax adjustments:
|
|
|
|
|
|
|
Acquisition costs(2)
|
4,639
|
|
-
|
|
|
|
Catastrophic events (3)
|
7,261
|
|
1,658
|
|
|
|
Net gain on dealership dispositions (4)
|
(5,265)
|
|
-
|
|
|
|
Net gain on real estate transactions (10)
|
-
|
|
(659)
|
|
|
|
Lease termination (5)
|
124
|
|
-
|
|
|
|
Non-cash impairment (6)
|
369
|
|
115
|
|
|
|
Income tax effect of non-deductible acquisition costs
|
2,329
|
|
-
|
|
|
|
Adjusted net income (1)
|
$ 68,963
|
|
$ 52,856
|
|
30.5
|
|
|
|
|
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED
|
|
|
|
|
|
|
COMMON SHARES RECONCILIATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
|
$ 68,963
|
|
$ 52,856
|
|
30.5
|
|
Less: Adjusted earnings allocated to participating securities
|
2,925
|
|
2,789
|
|
4.9
|
|
Adjusted net income available to diluted common shares
|
$ 66,038
|
|
$ 50,067
|
|
31.9
|
|
|
|
|
|
|
|
|
DILUTED INCOME PER COMMON SHARE RECONCILIATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
$ 2.32
|
|
$ 2.18
|
|
6.4
|
|
After-tax adjustments:
|
|
|
|
|
|
|
Acquisition costs
|
0.18
|
|
-
|
|
|
|
Catastrophic events
|
0.28
|
|
0.07
|
|
|
|
Net gain on dealership dispositions
|
(0.20)
|
|
-
|
|
|
|
Net gain on real estate transactions
|
-
|
|
(0.03)
|
|
|
|
Lease termination
|
0.01
|
|
-
|
|
|
|
Non-cash impairment
|
0.01
|
|
0.01
|
|
|
|
Income tax effect of non-deductible acquisition costs
|
0.09
|
|
-
|
|
|
|
Adjusted diluted income per share (1)
|
$ 2.69
|
|
$ 2.23
|
|
20.6
|
|
|
|
|
|
|
|
|
SG&A RECONCILIATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
$ 484,592
|
|
$ 413,439
|
|
17.2
|
|
Pre-tax adjustments:
|
|
|
|
|
|
|
Acquisition costs
|
(6,512)
|
|
-
|
|
|
|
Catastrophic events
|
(11,900)
|
|
(2,650)
|
|
|
|
Net gain on dealership dispositions
|
9,023
|
|
-
|
|
|
|
Net gain on real estate transactions
|
-
|
|
1,071
|
|
|
|
Lease termination
|
(200)
|
|
-
|
|
|
|
Adjusted SG&A (1)
|
$ 475,003
|
|
$ 411,860
|
|
15.3
|
|
|
|
|
|
|
|
|
SG&A AS % REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
11.3
|
|
11.6
|
|
|
|
Adjusted (1)
|
11.0
|
|
11.6
|
|
|
|
|
|
|
|
|
|
|
SG&A AS % OF GROSS PROFIT:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
75.5
|
|
75.8
|
|
|
|
Adjusted (1)
|
74.0
|
|
75.5
|
|
|
|
|
|
|
|
|
|
|
OPERATING MARGIN %:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
3.2
|
|
3.3
|
|
|
|
Adjusted (1), (7)
|
3.5
|
|
3.3
|
|
|
|
|
|
|
|
|
|
|
PRETAX MARGIN %:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
2.3
|
|
2.3
|
|
|
|
Adjusted (1), (8)
|
2.6
|
|
2.4
|
|
|
|
|
|
|
|
|
|
|
SAME STORE SG&A RECONCILIATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
$ 433,250
|
|
$ 400,654
|
|
8.1
|
|
Pre-tax adjustments:
|
|
|
|
|
|
|
Acquisition costs
|
(5,301)
|
|
-
|
|
|
|
Catastrophic events
|
(11,900)
|
|
(2,650)
|
|
|
|
Net gain on real estate transactions
|
-
|
|
(504)
|
|
|
|
Lease termination
|
(200)
|
|
-
|
|
|
|
Adjusted Same Store SG&A (1)
|
$ 415,849
|
|
$ 397,500
|
|
4.6
|
|
|
|
|
|
|
|
|
SAME STORE SG&A AS % REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
11.7
|
|
11.6
|
|
|
|
Adjusted (1)
|
11.3
|
|
11.5
|
|
|
|
|
|
|
|
|
|
|
SAME STORE SG&A AS % OF GROSS PROFIT:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
75.9
|
|
75.4
|
|
|
|
Adjusted (1)
|
72.9
|
|
74.8
|
|
|
|
|
|
|
|
|
|
|
SAME STORE OPERATING MARGIN %:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
|
3.3
|
|
3.4
|
|
|
|
Adjusted (1), (9)
|
3.8
|
|
3.4
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[1]
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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.
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[2]
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Adjustment is net of tax benefit of $2,394 for the six months ended June 30, 2013, calculated utilizing the applicable federal
and state tax rates for the adjustment.
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[3]
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Adjustment is net of tax benefit of $4,335 and $4,639 for the three and six months ended June 30, 2013, respectively, and $992
for the three and six months ended June 30, 2012, calculated utilizing the applicable federal and state tax rates for the adjustment.
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[4]
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Adjustment is net of tax provision of $3,540 and $3,758 for the three and six months ended June 30, 2013, respectively, calculated
utilizing the applicable federal and state tax rates for the adjustment.
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[5]
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Adjustment is net of tax benefit of $76 for the three and six months ended June 30, 2013, calculated utilizing the applicable federal
and state tax rates for the adjustment.
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[6]
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Adjustment is net of tax benefit of $240 for the three and six months ended June 30, 2013, and $72 for the three and six months ended
June 30, 2012, calculated utilizing the applicable federal and state tax rates for the adjustment.
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[7]
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Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges for all periods.
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[8]
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Excludes the impact of SG&A reconciling items above, non-cash asset impairment charges for all periods, as well as the other expense
of $789, for the six months ended June 30, 2013.
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[9]
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Excludes the impact of Same Store SG&A reconciling items above, as well as Same Store non-cash asset impairment charges of $609
for the three and six months ended June 30, 2013, and $187 for the three and six months ended June 30, 2012.
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[10]
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Adjustment is net of tax provision of $412 for the three and six months ended June 30, 2012, calculated utilizing the applicable federal
and state tax rates for the adjustment.
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SOURCE Group 1 Automotive, Inc.