NEWS

Group 1 Automotive Reports Record Third Quarter Earnings

Tuesday, Oct 27, 2015

HOUSTON, Oct. 27, 2015 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), an international, Fortune 500 automotive retailer, today reported record third quarter 2015 adjusted net income of $46.0 million, a 15.7 percent increase over the prior year. Adjusted diluted earnings per share of $1.91 were also a third quarter record, reflecting a 21.7 percent increase from the comparable, adjusted prior-year period.

These third quarter results exclude approximately $800 thousand of net, after-tax charges related to non-cash asset impairments. GAAP net income and diluted earnings per share were $45.3 million and $1.88, respectively. Reconciliations of non-GAAP financial measures are included in the attached financial tables.

"We are delighted to announce an all-time quarterly revenue record of $2.8 billion," said Earl J. Hesterberg, Group 1's president and chief executive officer. "Continued expense leverage in the United States and strong top-line growth in both the U.S. and U.K. delivered a record third quarter adjusted diluted EPS of $1.91. We were particularly pleased with the double-digit growth in used vehicle unit Same Store sales that all three of our markets delivered this quarter. In addition, our U.K. operations had an outstanding quarter, with revenue up 39.6 percent on a constant currency basis. Finally, while overall market conditions continue to be challenging in Brazil, with new vehicle industry volumes declining over 25 percent on a year-over-year basis, our team in Brazil grew Same Store revenue by 7.1 percent on a constant currency basis and delivered another profitable quarter," Hesterberg added.

Consolidated Results for Third Quarter 2015 (year-over-year comparable basis)

  • Total revenue increased 6.6 percent to an all-time quarterly record of $2.8 billion; total gross profit grew 6.3 percent, to $398.4 million, also an all-time quarterly record. On a constant currency basis, revenues were up 10.2 percent.
  • New vehicle revenue increased 5.3 percent, reflecting 5.9 percent higher unit sales. On a Same Store basis, new unit sales increased 19.1 percent in the U.K., 4.4 percent in the U.S., and 1.3 percent in Brazil.
  • Used vehicle retail revenue increased 11.6 percent, primarily reflecting 12.9 percent higher used retail unit sales. On a Same Store basis, used retail unit sales increased 10.3 percent in the U.S., 19.0 percent in the U.K., and 15.3 percent in Brazil.
  • Parts and service gross profit increased 7.8 percent on revenue growth of 4.0 percent (7.0 percent on a constant currency basis). U.S. Same Store parts and service gross profit increased 9.4 percent on revenue growth of 6.6 percent.
  • Finance and Insurance (F&I) gross profit increased 10.9 percent, as total retail units sold increased 8.7 percent and F&I per retail unit improved $27, to $1,352. U.S. Same Store F&I gross profit grew 10.8 percent, as F&I per retail unit improved $55, to $1,518.
  • Adjusted selling, general and administrative (SG&A) expenses as a percent of gross profit improved 140 basis points, to 72.5 percent. On a GAAP basis, SG&A expenses as a percent of gross profit increased 200 basis points, to 72.5 percent.
  • Adjusted operating margin improved 20 basis points, to 3.5 percent. On a GAAP basis, operating margin improved 10 basis points, to 3.5 percent.

Segment Results for Third Quarter 2015 (year-over-year comparable basis)

  • United States:

    The Company's U.S. operations accounted for 83.7 percent of total revenues and 87.4 percent of total gross profit. Total U.S. revenues increased 7.7 percent, to $2.3 billion. This increase reflects improvements in all areas of the business, including growth of 6.6 percent and 10.2 percent in new and total used vehicle sales, respectively, and a 12.0 percent increase in F&I revenue, driven by the increase in volume and improved income per retail unit of $65 to $1,515. In addition, parts and service revenue increased 6.1 percent. The higher revenue and expanded parts and service gross margin of 180 basis points drove total U.S. gross profit growth of 8.2 percent.



    On a comparable basis, adjusted SG&A expenses as a percent of gross margin improved 150 basis points to 71.4 percent and adjusted operating margin grew 20 basis points to 3.8 percent.



  • United Kingdom:

    The Company's U.K. operations accounted for 11.7 percent of total revenues and 9.1 percent of total gross profit. Total revenue increased 29.8 percent (39.6 percent on a constant currency basis) to $327.4 million, and gross profit increased 21.5 percent (30.5 percent on a constant currency basis). The revenue increase was driven by new vehicle retail growth of 34.2 percent, total used vehicle growth of 25.1 percent, parts and service growth of 23.1 percent, and an F&I revenue increase of 27.0 percent.



  • Brazil: The Company's Brazil operations accounted for 4.6 percent of total revenues and 3.5 percent of total gross profit. On a Same Store constant currency basis, revenues increased 7.1 percent, driven by a 1.3 percent increase in new vehicle retail unit sales, a 15.3 percent increase in used retail unit sales, and a 3.7 percent increase in parts and service revenues.  

Corporate Development

During the third quarter of 2015, the Company acquired Mercedes-Benz, Sprinter, and Smart franchises within the greater metropolitan area of Austin, Texas that are expected to generate approximately $100 million in annual revenues.

Year to date, the Company has acquired five franchises that are expected to generate approximately $340 million in annual revenues and disposed of four franchises that generated trailing-twelve-month revenues of approximately $30 million.

Share Repurchase Authorization

During the quarter, the Company repurchased 443,447 shares at an average price per share of $85.69 for a total of $38.0 million. Year to date, the Company has repurchased approximately 850,000 shares at an average price of $83.67 for a total of $71.1 million. As of September 30, 2015, $28.3 million remains available under the Company's prior common stock share repurchase authorization. Future repurchases 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.

Third Quarter Earnings Conference Call Details

The Company'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/events. A webcast replay will be available for 30 days.

The conference call will also be available live by dialing in 15 minutes prior to the start of the call at:

Domestic:

1-888-317-6003

International:

1-412-317-6061

Access Code:

5636460

A telephonic replay will be available following the call through November 20, 2015 at 11:59 p.m. ET by dialing:

Domestic:

1-877-344-7529

International:

1-412-317-0088

Access Code:

10074627

About Group 1 Automotive, Inc.

Group 1 owns and operates 153 automotive dealerships, 200 franchises, and 35 collision centers in the United States, the United Kingdom and Brazil that offer 32 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells 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, Financial Services 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, 



2015



2014



% Change

REVENUES:











New vehicle retail sales

$ 1,601,213



$ 1,521,246



5.3

Used vehicle retail sales

687,637



615,924



11.6

Used vehicle wholesale sales

100,483



100,347



0.1

Parts and service

303,557



291,816



4.0

Finance and insurance

107,679



97,115



10.9

Total revenues

2,800,569



2,626,448



6.6













COST OF SALES:











New vehicle retail sales

1,521,721



1,441,016



5.6

Used vehicle retail sales

641,055



571,613



12.1

Used vehicle wholesale sales

102,318



101,643



0.7

Parts and service

137,093



137,467



(0.3)

Total cost of sales

2,402,187



2,251,739



6.7













GROSS PROFIT

398,382



374,709



6.3













SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

289,012



264,233



9.4













DEPRECIATION AND AMORTIZATION EXPENSE

11,811



10,746



9.9













ASSET IMPAIRMENTS

916



9,373



(90.2)













OPERATING INCOME

96,643



90,357



7.0













OTHER EXPENSE:











Floorplan interest expense

(9,685)



(10,452)



(7.3)

Other interest expense, net

(13,922)



(13,246)



5.1

Loss on extinguishment of long-term debt



(22,790)



(100.0)

INCOME BEFORE INCOME TAXES

73,036



43,869



66.5













PROVISION FOR INCOME TAXES

(27,775)



(17,707)



56.9













NET INCOME

$       45,261



$       26,162



73.0

Earnings allocated to participating securities

$       (1,729)



$       (1,000)



72.9

Earnings available to diluted common shares

$       43,532



$       25,162



73.0

DILUTED EARNINGS PER SHARE

$           1.88



$           1.03



82.5

Weighted average dilutive common shares outstanding

23,137



24,432



(5.3)

Weighted average participating securities

925



971



(4.7)

Total weighted average shares outstanding

24,062



25,403



(5.3)















 Nine Months Ended September 30, 



2015



2014



% Change

REVENUES:











New vehicle retail sales

$ 4,468,200



$ 4,256,146



5.0

Used vehicle retail sales

1,993,124



1,743,071



14.3

Used vehicle wholesale sales

302,186



284,491



6.2

Parts and service

888,939



844,340



5.3

Finance and insurance

307,454



270,901



13.5

Total revenues

7,959,903



7,398,949



7.6













COST OF SALES:











New vehicle retail sales

4,242,847



4,028,164



5.3

Used vehicle retail sales

1,854,361



1,610,293



15.2

Used vehicle wholesale sales

302,276



281,434



7.4

Parts and service

406,580



397,079



2.4

Total cost of sales

6,806,064



6,316,970



7.7













GROSS PROFIT

1,153,839



1,081,979



6.6













SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

841,050



793,761



6.0













DEPRECIATION AND AMORTIZATION EXPENSE

35,441



31,424



12.8













ASSET IMPAIRMENTS

1,955



11,094



(82.4)













OPERATING INCOME

275,393



245,700



12.1













OTHER EXPENSE:











Floorplan interest expense

(29,046)



(31,695)



(8.4)

Other interest expense, net

(42,061)



(36,326)



15.8

Loss on extinguishment of long-term debt



(46,403)



(100.0)

INCOME BEFORE INCOME TAXES

204,286



131,276



55.6













PROVISION FOR INCOME TAXES

(76,901)



(56,949)



35.0













NET INCOME

$     127,385



$       74,327



71.4

Earnings allocated to participating securities

$       (4,905)



$       (2,769)



77.1

Earnings available to diluted common shares

$     122,480



$       71,558



71.2

DILUTED EARNINGS PER SHARE

$           5.26



$           2.82



86.5

Weighted average dilutive common shares outstanding

23,298



25,363



(8.1)

Weighted average participating securities

934



973



(4.0)

Total weighted average shares outstanding

24,232



26,336



(8.0)

 

Group 1 Automotive, Inc.

Consolidated Balance Sheets

(Dollars in thousands)



















September 30,



December 31,









2015



2014



% Change

 ASSETS: 



(Unaudited)









 CURRENT ASSETS: 













 Cash and cash equivalents 



$             21,968



$            40,975



(46.4)

 Contracts in transit and vehicle receivables, net 



205,636



237,448



(13.4)

 Accounts and notes receivable, net 



147,110



151,330



(2.8)

 Inventories, net 



1,634,421



1,556,705



5.0

 Deferred income taxes 



13,099



11,062



18.4

 Prepaid expenses and other current assets 



22,556



37,699



(40.2)

 Total current assets 



2,044,790



2,035,219



0.5

 PROPERTY AND EQUIPMENT, net 



978,892



950,388



3.0

 GOODWILL AND INTANGIBLE FRANCHISE RIGHTS 



1,252,402



1,134,324



10.4

 OTHER ASSETS 



15,966



21,561



(25.9)

 Total assets 



$        4,292,050



$       4,141,492



3.6















 LIABILITIES AND STOCKHOLDERS' EQUITY: 













 CURRENT LIABILITIES: 













 Floorplan notes payable - credit facility and other 



$        1,177,513



$       1,143,246



3.0

 Offset account related to floorplan notes payable - credit facility 



(28,073)



(39,616)



(29.1)

 Floorplan notes payable - manufacturer affiliates 



347,657



307,656



13.0

 Offset account related to floorplan notes payable - manufacturer affiliates 



(20,001)



(22,500)



(11.1)

 Current maturities of long-term debt  



55,959



72,630



(23.0)

 Accounts payable 



290,509



288,320



0.8

 Accrued expenses 



158,283



172,463



(8.2)

 Total current liabilities 



1,981,847



1,922,199



3.1

 5.00% SENIOR NOTES (aggregate principal of $550,000 at September 30, 2015 and December 31, 2014) 



540,957



540,100



0.2

 REAL ESTATE CREDIT FACILITY, net of current maturities 



24,594



27,099



(9.2)

 ACQUISITION LINE 



138,201



69,713



98.2

 OTHER REAL ESTATE RELATED AND LONG-TERM DEBT, net of current maturities 



331,194



319,984



3.5

 CAPITAL LEASE OBLIGATIONS RELATED TO REAL ESTATE, net of current maturities 



49,215



51,941



(5.2)

 DEFERRED INCOME TAXES 



147,296



141,239



4.3

 LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES 



39,724



25,311



56.9

 OTHER LIABILITIES 



69,694



65,896



5.8

 STOCKHOLDERS' EQUITY: 













 Common stock 



257



257



-

 Additional paid-in capital 



288,754



286,854



0.7

 Retained earnings 



964,703



852,057



13.2

 Accumulated other comprehensive loss 



(145,805)



(81,984)



77.8

 Treasury stock 



(138,581)



(79,174)



75.0

 Total stockholders' equity 



969,328



978,010



(0.9)

 Total liabilities and stockholders' equity 



$        4,292,050



$       4,141,492



3.6

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)



























Three Months Ended



Nine Months Ended







September 30,



September 30,







2015 (%)



2014 (%)



2015 (%)



2014 (%)

NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:















Region

Geographic Market

















East

Massachusetts



6.0



6.6



6.1



5.9



Georgia



4.5



4.8



4.6



4.7



New Jersey



2.3



2.7



2.3



3.2



Florida



2.3



1.4



2.0



1.4



New Hampshire



2.1



2.1



2.0



2.2



Louisiana



1.5



1.6



1.6



1.7



Mississippi



1.5



1.4



1.5



1.4



South Carolina



1.4



1.6



1.4



1.5



Alabama



0.6



0.7



0.7



0.8



Maryland



0.5



0.5



0.5



0.5



New York





1.2





1.7







22.7



24.6



22.7



25.0





















West

Texas



38.6



37.1



38.4



35.4



California



9.5



9.3



9.7



9.6



Oklahoma



7.8



8.6



7.7



8.4



Kansas



2.0



2.1



2.1



2.3



Louisiana



0.7



0.6



0.7



0.6







58.6



57.7



58.6



56.3





















International

United Kingdom



11.1



8.5



11.0



8.9



Brazil



7.6



9.2



7.7



9.8







100.0



100.0



100.0



100.0





















NEW VEHICLE UNIT SALES BRAND MIX:

















Toyota/Scion/Lexus



26.6



28.3



26.6



27.2

Ford/Lincoln



11.6



10.4



11.6



11.1

BMW/MINI



11.3



10.7



11.4



11.2

Honda/Acura



11.1



10.5



10.9



11.2

Nissan



8.0



8.9



8.4



9.3

Chevrolet/GMC/Buick/Cadillac



7.8



7.0



7.5



6.0

Volkswagen/Audi/Porsche



7.7



6.2



7.0



6.3

Hyundai/Kia



5.4



5.7



5.8



5.5

Chrysler/Dodge/Jeep/RAM



4.6



4.4



4.6



4.4

Mercedes-Benz/smart/Sprinter



3.8



4.2



4.1



4.2

Other



2.1



3.7



2.1



3.6







100.0



100.0



100.0



100.0

 

Group 1 Automotive, Inc.

Additional Information - U.S.

(Unaudited)

(Dollars in thousands, except per unit amounts)



















Three Months Ended September 30,





2015



2014



% Change

REVENUES:













New vehicle retail sales



$   1,327,049



$   1,245,430



6.6

Used vehicle retail sales



577,426



515,911



11.9

Used vehicle wholesale sales



74,161



75,272



(1.5)

Total used



651,587



591,183



10.2

Parts and service



264,979



249,724



6.1

Finance and insurance



99,952



89,268



12.0

Total



$   2,343,567



$   2,175,605



7.7















GROSS MARGIN %:













New vehicle retail sales



4.7



5.0





Used vehicle retail sales



7.1



7.4





Used vehicle wholesale sales



(2.5)



(1.9)





Total used



6.0



6.2





Parts and service



55.4



53.6





Finance and insurance



100.0



100.0





Total



14.9



14.8



















GROSS PROFIT:













New vehicle retail sales



$        62,428



$        61,975



0.7

Used vehicle retail sales



41,053



38,251



7.3

Used vehicle wholesale sales



(1,855)



(1,431)



29.6

Total used



39,198



36,820



6.5

Parts and service



146,737



133,874



9.6

Finance and insurance



99,952



89,268



12.0

Total



$      348,315



$      321,937



8.2















UNITS SOLD:













Retail new vehicles sold



38,331



36,649



4.6

Retail used vehicles sold



27,664



24,917



11.0

Wholesale used vehicles sold



11,733



11,984



(2.1)

Total used



39,397



36,901



6.8















AVERAGE RETAIL SALES PRICE:













New vehicle retail



$        34,621



$        33,983



1.9

Used vehicle retail



$        20,873



$        20,705



0.8















GROSS PROFIT PER UNIT SOLD:













New vehicle retail sales



$          1,629



$          1,691



(3.7)

Used vehicle retail sales



1,484



1,535



(3.3)

Used vehicle wholesale sales



(158)



(119)



32.8

Total used



995



998



(0.3)

Finance and insurance (per retail unit)



$          1,515



$          1,450



4.5

OTHER: (1)













SG&A expenses



$      248,771



$      234,849



5.9

SG&A as % revenues



10.6



10.8





SG&A as % gross profit



71.4



72.9





Operating margin %



3.8



3.6





Pretax margin %



2.9



2.6



















INTEREST EXPENSE:













Floorplan interest



$         (8,964)



$         (8,543)



4.9

Floorplan assistance



13,344



11,876



12.4

Net floorplan income



$          4,380



$          3,333



31.4

Other interest expense, net



$       (12,737)



$       (12,265)



3.8

































Nine Months Ended September 30,





2015



2014



% Change

REVENUES:













New vehicle retail sales



$   3,693,777



$   3,449,303



7.1

Used vehicle retail sales



1,661,932



1,440,473



15.4

Used vehicle wholesale sales



217,032



208,392



4.1

Total used



1,878,964



1,648,865



14.0

Parts and service



771,986



723,839



6.7

Finance and insurance



284,787



248,820



14.5

Total



$   6,629,514



$   6,070,827



9.2















GROSS MARGIN %:













New vehicle retail sales



4.8



5.1





Used vehicle retail sales



7.3



8.0





Used vehicle wholesale sales



(0.1)



0.9





Total used



6.5



7.1





Parts and service



54.8



53.6





Finance and insurance



100.0



100.0





Total



15.2



15.3



















GROSS PROFIT:













New vehicle retail sales



$      175,549



$      175,006



0.3

Used vehicle retail sales



121,906



114,613



6.4

Used vehicle wholesale sales



(167)



1,964



(108.5)

Total used



121,739



116,577



4.4

Parts and service



422,912



388,042



9.0

Finance and insurance



284,787



248,820



14.5

Total



$   1,004,987



$      928,445



8.2















UNITS SOLD:













Retail new vehicles sold



106,651



101,281



5.3

Retail used vehicles sold



79,647



70,367



13.2

Wholesale used vehicles sold



33,542



32,395



3.5

Total used



113,189



102,762



10.1















AVERAGE RETAIL SALES PRICE:













New vehicle retail



$        34,634



$        34,057



1.7

Used vehicle retail



$        20,866



$        20,471



1.9















GROSS PROFIT PER UNIT SOLD:













New vehicle retail sales



$          1,646



$          1,728



(4.7)

Used vehicle retail sales



1,531



1,629



(6.0)

Used vehicle wholesale sales



(5)



61



(108.2)

Total used



1,076



1,134



(5.1)

Finance and insurance (per retail unit)



$          1,529



$          1,450



5.4















OTHER: (1)













SG&A expenses



$      717,708



$      677,142



6.0

SG&A as % revenues



10.8



11.2





SG&A as % gross profit



71.4



72.9





Operating margin %



3.9



3.7





Pretax margin %



2.9



2.7



















INTEREST EXPENSE:













 Floorplan interest 



$       (26,440)



$       (25,489)



3.7

 Floorplan assistance 



36,503



32,969



10.7

 Net floorplan income 



$        10,063



$          7,480



34.5

 Other interest expense, net 



$       (38,534)



$       (34,327)



12.3















(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 September 30,





2015



2014



% Change



Local Currency

% Change

REVENUES:

















New vehicle retail sales



$  180,967



$  134,859



34.2



44.0

Used vehicle retail sales



89,321



70,163



27.3



37.1

Used vehicle wholesale sales



24,859



21,110



17.8



27.0

Total used



114,180



91,273



25.1



34.8

Parts and service



26,193



21,272



23.1



32.7

Finance and insurance



6,091



4,797



27.0



36.6

Total



$  327,431



$  252,201



29.8



39.6



















GROSS MARGIN %:

















New vehicle retail sales



6.1



6.9









Used vehicle retail sales



5.2



5.9









Used vehicle wholesale sales



(0.3)



(0.8)









Total used



4.0



4.4









Parts and service



55.6



55.2









Finance and insurance



100.0



100.0









Total



11.1



11.8



























GROSS PROFIT:

















New vehicle retail sales



$    11,060



$      9,305



18.9



27.0

Used vehicle retail sales



4,631



4,165



11.2



19.5

Used vehicle wholesale sales



(73)



(174)



(58.0)



(53.4)

Total used



4,558



3,991



14.2



22.7

Parts and service



14,554



11,746



23.9



33.5

Finance and insurance



6,091



4,797



27.0



36.6

Total



$    36,263



$    29,839



21.5



30.5



















UNITS SOLD:

















Retail new vehicles sold



5,213



3,773



38.2





Retail used vehicles sold



3,582



2,649



35.2





Wholesale used vehicles sold



2,791



2,183



27.9





Total used



6,373



4,832



31.9























AVERAGE RETAIL SALES PRICE:

















New vehicle retail



$    34,715



$    35,743



(2.9)



4.2

Used vehicle retail



$    24,936



$    26,487



(5.9)



1.4



















GROSS PROFIT PER UNIT SOLD:

















New vehicle retail sales



$      2,122



$      2,466



(13.9)



(8.1)

Used vehicle retail sales



1,293



1,572



(17.7)



(11.6)

Used vehicle wholesale sales



(26)



(80)



(67.5)



(63.5)

Total used



715



826



(13.4)



(6.9)

Finance and insurance (per retail unit)



$         693



$         747



(7.2)



(0.2)

OTHER: (1)

















SG&A expenses



$    28,124



$    22,275



26.3



36.0

SG&A as % revenues



8.6



8.8









SG&A as % gross profit



77.6



74.7









Operating margin %



2.2



2.7









Pretax margin %



1.7



2.3



























INTEREST EXPENSE:

















Floorplan interest



$        (625)



$        (419)



49.2





Floorplan assistance



201



246



(18.3)





Net floorplan expense



$        (424)



$        (173)



145.1





Other interest expense, net



$        (780)



$        (442)



76.5













































Nine Months Ended September 30,





2015



2014



% Change



Local Currency

% Change

REVENUES:

















New vehicle retail sales



$  492,424



$  397,263



24.0



35.1

Used vehicle retail sales



269,629



214,900



25.5



36.7

Used vehicle wholesale sales



78,692



62,304



26.3



37.8

Total used



348,321



277,204



25.7



37.0

Parts and service



76,983



62,843



22.5



33.4

Finance and insurance



17,411



13,916



25.1



36.3

Total



$  935,139



$  751,226



24.5



35.6



















GROSS MARGIN %:

















New vehicle retail sales



6.3



6.8









Used vehicle retail sales



5.3



5.9









Used vehicle wholesale sales



(0.5)











Total used



4.0



4.6









Parts and service



55.0



55.1









Finance and insurance



100.0



100.0









Total



11.2



11.7



























GROSS PROFIT:

















New vehicle retail sales



$    30,802



$    26,843



14.7



25.0

Used vehicle retail sales



14,164



12,684



11.7



21.7

Used vehicle wholesale sales



(385)



(4)



9,525.0



9,647.3

Total used



13,779



12,680



8.7



18.5

Parts and service



42,345



34,655



22.2



33.1

Finance and insurance



17,411



13,916



25.1



36.3

Total



$  104,337



$    88,094



18.4



29.0



















UNITS SOLD:

















Retail new vehicles sold



14,408



11,144



29.3





Retail used vehicles sold



10,863



8,108



34.0





Wholesale used vehicles sold



8,682



6,539



32.8





Total used



19,545



14,647



33.4























AVERAGE RETAIL SALES PRICE:

















New vehicle retail



$    34,177



$    35,648



(4.1)



4.5

Used vehicle retail



$    24,821



$    26,505



(6.4)



2.0



















GROSS PROFIT PER UNIT SOLD:

















New vehicle retail sales



$      2,138



$      2,409



(11.2)



(3.3)

Used vehicle retail sales



1,304



1,564



(16.6)



(9.1)

Used vehicle wholesale sales



(44)



(1)



4,300.0



7,241.4

Total used



705



866



(18.6)



(11.2)

Finance and insurance (per retail unit)



$         689



$         723



(4.7)



3.8



















OTHER:(1)

















SG&A expenses



$    81,320



$    67,063



21.3



32.1

SG&A as % revenues



8.7



8.9









SG&A as % gross profit



77.9



76.1









Operating margin %



2.1



2.5









Pretax margin %



1.7



2.1



























INTEREST EXPENSE:

















 Floorplan interest 



$     (1,689)



$     (1,188)



42.2





 Floorplan assistance 



584



504



15.9





 Net floorplan expense 



$     (1,105)



$        (684)



61.5





 Other interest expense, net 



$     (2,339)



$     (1,402)



66.8























(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 September 30,





2015



2014



% Change



Local Currency

% Change

REVENUES:

















New vehicle retail sales



$    93,197



$  140,957



(33.9)



1.8

Used vehicle retail sales



20,890



29,850



(30.0)



8.1

Used vehicle wholesale sales



1,463



3,965



(63.1)



(44.5)

Total used



22,353



33,815



(33.9)



2.0

Parts and service



12,385



20,820



(40.5)



(8.1)

Finance and insurance



1,636



3,050



(46.4)



(15.7)

Total



$  129,571



$  198,642



(34.8)



0.5



















GROSS MARGIN %:

















New vehicle retail sales



6.4



6.3









Used vehicle retail sales



4.3



6.3









Used vehicle wholesale sales



6.4



7.8









Total used



4.4



6.5









Parts and service



41.8



41.9









Finance and insurance



100.0



100.0









Total



10.7



11.5



























GROSS PROFIT:

















New vehicle retail sales



$      6,004



$      8,950



(32.9)



2.7

Used vehicle retail sales



898



1,895



(52.6)



(26.8)

Used vehicle wholesale sales



93



309



(69.9)



(55.1)

Total used



991



2,204



(55.0)



(30.8)

Parts and service



5,173



8,729



(40.7)



(8.5)

Finance and insurance



1,636



3,050



(46.4)



(15.7)

Total



$    13,804



$    22,933



(39.8)



(7.2)



















UNITS SOLD:

















Retail new vehicles sold



3,582



4,072



(12.0)





Retail used vehicles sold



1,245



1,210



2.9





Wholesale used vehicles sold



402



583



(31.0)





Total used



1,647



1,793



(8.1)























AVERAGE RETAIL SALES PRICE:

















New vehicle retail



$    26,018



$    34,616



(24.8)



15.7

Used vehicle retail



$    16,779



$    24,669



(32.0)



5.1



















GROSS PROFIT PER UNIT SOLD:

















New vehicle retail sales



$      1,676



$      2,198



(23.7)



16.7

Used vehicle retail sales



721



1,566



(54.0)



(28.9)

Used vehicle wholesale sales



231



530



(56.4)



(34.8)

Total used



602



1,229



(51.0)



(24.7)

Finance and insurance (per retail unit)



$         339



$         577



(41.2)



(7.8)

OTHER: (1)

















SG&A expenses



$    12,117



$    19,920



(39.2)



(6.3)

SG&A as % revenues



9.4



10.0









SG&A as % gross profit



87.8



86.9









Operating margin %



1.0



1.2









Pretax margin %



0.6



0.2



























INTEREST EXPENSE:

















 Floorplan interest 



$          (96)



$     (1,490)



(93.6)





 Floorplan assistance 











 Net floorplan expense 



$          (96)



$     (1,490)



(93.6)





 Other interest expense, net 



$        (405)



$        (539)



(24.9)













































Nine Months Ended September 30,





2015



2014



% Change



Local Currency

% Change

REVENUES:

















New vehicle retail sales



$  281,999



$  409,580



(31.1)



(5.4)

Used vehicle retail sales



61,563



87,698



(29.8)



(3.8)

Used vehicle wholesale sales



6,462



13,795



(53.2)



(37.9)

Total used



68,025



101,493



(33.0)



(8.4)

Parts and service



39,970



57,658



(30.7)



(4.9)

Finance and insurance



5,256



8,165



(35.6)



(11.3)

Total



$  395,250



$  576,896



(31.5)



(6.0)



















GROSS MARGIN %:

















New vehicle retail sales



6.7



6.4









Used vehicle retail sales



4.4



6.2









Used vehicle wholesale sales



7.1



8.0









Total used



4.6



6.5









Parts and service



42.8



42.6









Finance and insurance



100.0



100.0









Total



11.3



11.3



























GROSS PROFIT:

















New vehicle retail sales



$    19,002



$    26,133



(27.3)



(0.3)

Used vehicle retail sales



2,693



5,481



(50.9)



(32.9)

Used vehicle wholesale sales



462



1,097



(57.9)



(44.6)

Total used



3,155



6,578



(52.0)



(34.8)

Parts and service



17,102



24,564



(30.4)



(4.7)

Finance and insurance



5,256



8,165



(35.6)



(11.3)

Total



$    44,515



$    65,440



(32.0)



(6.8)



















UNITS SOLD:

















Retail new vehicles sold



10,071



12,274



(17.9)





Retail used vehicles sold



3,403



3,899



(12.7)





Wholesale used vehicles sold



1,269



1,830



(30.7)





Total used



4,672



5,729



(18.4)























AVERAGE RETAIL SALES PRICE:

















New vehicle retail



$    28,001



$    33,370



(16.1)



15.3

Used vehicle retail



$    18,091



$    22,492



(19.6)



10.2



















GROSS PROFIT PER UNIT SOLD:

















New vehicle retail sales



$      1,887



$      2,129



(11.4)



21.5

Used vehicle retail sales



791



1,406



(43.7)



(23.1)

Used vehicle wholesale sales



364



599



(39.2)



(20.0)

Total used



675



1,148



(41.2)



(20.1)

Finance and insurance (per retail unit)



$         390



$         505



(22.8)



6.5



















OTHER: (1)

















SG&A expenses



$    40,915



$    60,342



(32.2)



(7.4)

SG&A as % revenues



10.4



10.5









SG&A as % gross profit



91.9



92.2









Operating margin %



0.6



0.6









Pretax margin %





(0.4)



























INTEREST EXPENSE:

















 Floorplan interest 



$        (917)



$     (5,018)



(81.7)





 Floorplan assistance 











 Net floorplan expense 



$        (917)



$     (5,018)



(81.7)





 Other interest expense, net 



$     (1,188)



$        (597)



99.0























(1)These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

(Dollars in thousands, except per unit amounts)























Three Months Ended September 30,





2015



2014



% Change



Local Currency

% Change

REVENUES:

















New vehicle retail sales



$   1,601,213



$   1,521,246



5.3



9.4

Used vehicle retail sales



687,637



615,924



11.6



14.6

Used vehicle wholesale sales



100,483



100,347



0.1



2.8

Total used



788,120



716,271



10.0



13.0

Parts and service



303,557



291,816



4.0



7.0

Finance and insurance



107,679



97,115



10.9



12.3

Total



$   2,800,569



$   2,626,448



6.6



10.2



















GROSS MARGIN %:

















New vehicle retail sales



5.0



5.3









Used vehicle retail sales



6.8



7.2









Used vehicle wholesale sales



(1.8)



(1.3)









Total used



5.7



6.0









Parts and service



54.8



52.9









Finance and insurance



100.0



100.0









Total



14.2



14.3



























GROSS PROFIT:

















New vehicle retail sales



$        79,492



$        80,230



(0.9)



4.0

Used vehicle retail sales



46,582



44,311



5.1



7.0

Used vehicle wholesale sales



(1,835)



(1,296)



41.6



38.8

Total used



44,747



43,015



4.0



6.1

Parts and service



166,464



154,349



7.8



10.4

Finance and insurance



107,679



97,115



10.9



12.3

Total



$      398,382



$      374,709



6.3



9.0



















UNITS SOLD:

















Retail new vehicles sold



47,126



44,494



5.9





Retail used vehicles sold



32,491



28,776



12.9





Wholesale used vehicles sold



14,926



14,750



1.2





Total used



47,417



43,526



8.9























AVERAGE RETAIL SALES PRICE:

















New vehicle retail



$        33,977



$        34,190



(0.6)



3.3

Used vehicle retail



$        21,164



$        21,404



(1.1)



1.5



















GROSS PROFIT PER UNIT SOLD:

















New vehicle retail sales



$          1,687



$          1,803



(6.4)



(1.8)

Used vehicle retail sales



1,434



1,540



(6.9)



(5.2)

Used vehicle wholesale sales



(123)



(88)



39.8



37.1

Total used



944



988



(4.5)



(2.6)

Finance and insurance (per retail unit)



$          1,352



$          1,325



2.0



3.4

OTHER: (1)

















SG&A expenses



$      289,012



$      277,044



4.3



7.5

SG&A as % revenues



10.3



10.5









SG&A as % gross profit



72.5



73.9









Operating margin %



3.5



3.3









Pretax margin %



2.6



2.4



























INTEREST EXPENSE:

















 Floorplan interest 



$        (9,685)



$      (10,452)



(7.3)





 Floorplan assistance 



13,545



12,122



11.7





 Net floorplan expense 



$         3,860



$         1,670



131.1





 Other interest expense, net 



$      (13,922)



$      (13,246)



5.1













































Nine Months Ended September 30,





2015



2014



% Change



Local Currency

% Change

REVENUES:

















New vehicle retail sales



$   4,468,200



$   4,256,146



5.0



8.5

Used vehicle retail sales



1,993,124



1,743,071



14.3



17.0

Used vehicle wholesale sales



302,186



284,491



6.2



9.5

Total used



2,295,310



2,027,562



13.2



16.0

Parts and service



888,939



844,340



5.3



7.9

Finance and insurance



307,454



270,901



13.5



14.8

Total



$   7,959,903



$   7,398,949



7.6



10.7



















GROSS MARGIN %:

















New vehicle retail sales



5.0



5.4









Used vehicle retail sales



7.0



7.6









Used vehicle wholesale sales





1.1









Total used



6.0



6.7









Parts and service



54.3



53.0









Finance and insurance



100.0



100.0









Total



14.5



14.6



























GROSS PROFIT:

















New vehicle retail sales



$      225,353



$      227,982



(1.2)



3.1

Used vehicle retail sales



138,763



132,778



4.5



6.2

Used vehicle wholesale sales



(90)



3,057



(102.9)



(99.2)

Total used



138,673



135,835



2.1



3.8

Parts and service



482,359



447,261



7.8



10.1

Finance and insurance



307,454



270,901



13.5



14.8

Total



$   1,153,839



$   1,081,979



6.6



9.0



















UNITS SOLD:

















Retail new vehicles sold



131,130



124,699



5.2





Retail used vehicles sold



93,913



82,374



14.0





Wholesale used vehicles sold



43,493



40,764



6.7





Total used



137,406



123,138



11.6























AVERAGE RETAIL SALES PRICE:

















New vehicle retail



$        34,075



$        34,131



(0.2)



3.2

Used vehicle retail



$        21,223



$        21,160



0.3



2.7



















GROSS PROFIT PER UNIT SOLD:

















New vehicle retail sales



$          1,719



$          1,828



(6.0)



(1.9)

Used vehicle retail sales



1,478



1,612



(8.3)



(6.8)

Used vehicle wholesale sales



(2)



75



(102.7)



(99.2)

Total used



1,009



1,103



(8.5)



(6.9)

Finance and insurance (per retail unit)



$          1,366



$          1,308



4.4



5.6



















OTHER: (1)

















SG&A expenses



$      839,944



$      804,547



4.4



7.2

SG&A as % revenues



10.6



10.9









SG&A as % gross profit



72.8



74.4









Operating margin %



3.5



3.3









Pretax margin %



2.6



2.4



























INTEREST EXPENSE:

















 Floorplan interest 



$       (29,046)



$       (31,695)



(8.4)





 Floorplan assistance 



37,087



33,473



10.8





 Net floorplan expense 



$           8,041



$           1,778



352.2





 Other interest expense, net 



$       (42,061)



$       (36,326)



15.8























(1)These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.

 

Group 1 Automotive, Inc.

Additional Information - Same Store U.S. (1)

(Unaudited)

(Dollars in thousands, except per unit amounts)



















Three Months Ended September 30,





2015



2014



% Change

REVENUES:













New vehicle retail sales



$   1,272,198



$   1,199,736



6.0

Used vehicle retail sales



552,722



497,814



11.0

Used vehicle wholesale sales



66,731



72,359



(7.8)

Total used



619,453



570,173



8.6

Parts and service



255,710



239,943



6.6

Finance and insurance



96,952



87,504



10.8

Total



$   2,244,313



$   2,097,356



7.0















GROSS MARGIN %:













New vehicle retail sales



4.7



5.0





Used vehicle retail sales



7.2



7.5





Used vehicle wholesale sales



(2.6)



(1.8)





Total used



6.1



6.3





Parts and service



55.1



53.7





Finance and insurance



100.0



100.0





Total



14.9



14.9



















GROSS PROFIT:













New vehicle retail sales



$        59,341



$        59,963



(1.0)

Used vehicle retail sales



39,733



37,492



6.0

Used vehicle wholesale sales



(1,745)



(1,305)



33.7

Total used



37,988



36,187



5.0

Parts and service



141,020



128,879



9.4

Finance and insurance



96,952



87,504



10.8

Total



$      335,301



$      312,533



7.3















UNITS SOLD:













Retail new vehicles sold



37,132



35,567



4.4

Retail used vehicles sold



26,756



24,261



10.3

Wholesale used vehicles sold



11,224



11,645



(3.6)

Total used



37,980



35,906



5.8















AVERAGE RETAIL SALES PRICE:













New vehicle retail



$        34,261



$        33,732



1.6

Used vehicle retail



$        20,658



$        20,519



0.7















GROSS PROFIT PER UNIT SOLD:













New vehicle retail sales



$          1,598



$          1,686



(5.2)

Used vehicle retail sales



1,485



1,545



(3.9)

Used vehicle wholesale sales



(155)



(112)



38.4

Total used



1,000



1,008



(0.8)

Finance and insurance (per retail unit)



$          1,518



$          1,463



3.8















OTHER:(2)













SG&A expenses



$      239,585



$      224,114



6.9

SG&A as % revenues



10.7



10.7





SG&A as % gross profit



71.5



71.7





Operating margin %



3.8



3.8























Nine Months Ended September 30,





2015



2014



% Change

REVENUES:













New vehicle retail sales



$   3,477,534



$   3,292,040



5.6

Used vehicle retail sales



1,549,938



1,384,939



11.9

Used vehicle wholesale sales



197,083



197,854



(0.4)

Total used



1,747,021



1,582,793



10.4

Parts and service



735,509



689,284



6.7

Finance and insurance



269,132



243,002



10.8

Total



$   6,229,196



$   5,807,119



7.3















GROSS MARGIN %:













New vehicle retail sales



4.7



5.1





Used vehicle retail sales



7.4



8.1





Used vehicle wholesale sales



0.1



1.1





Total used



6.5



7.2





Parts and service



54.5



53.6





Finance and insurance



100.0



100.0





Total



15.2



15.4



















GROSS PROFIT:













New vehicle retail sales



$      161,991



$      167,156



(3.1)

Used vehicle retail sales



114,268



111,843



2.2

Used vehicle wholesale sales



142



2,101



(93.2)

Total used



114,410



113,944



0.4

Parts and service



400,502



369,343



8.4

Finance and insurance



269,132



243,002



10.8

Total



$      946,035



$      893,445



5.9















UNITS SOLD:













Retail new vehicles sold



101,468



97,436



4.1

Retail used vehicles sold



75,199



68,295



10.1

Wholesale used vehicles sold



31,532



31,229



1.0

Total used



106,731



99,524



7.2















AVERAGE RETAIL SALES PRICE:













New vehicle retail



$        34,272



$        33,787



1.4

Used vehicle retail



$        20,611



$        20,279



1.6















GROSS PROFIT PER UNIT SOLD:













New vehicle retail sales



$          1,596



$          1,716



(7.0)

Used vehicle retail sales



1,520



1,638



(7.2)

Used vehicle wholesale sales



5



67



(92.5)

Total used



1,072



1,145



(6.4)

Finance and insurance (per retail unit)



$          1,523



$          1,466



3.9















OTHER: (2)













SG&A expenses



$      675,873



$      640,801



5.5

SG&A as % revenues



10.9



11.0





SG&A as % gross profit



71.4



71.7





Operating margin %



3.9



3.9



















(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.





Additional Information - Same Store U.K. (1)





(Unaudited)





(Dollars in thousands, except per unit amounts)



























Three Months Ended September 30,





2015



2014



% Change



Local Currency

% Change

REVENUES:

















New vehicle retail sales



$  151,967



$  134,858



12.7



21.0

Used vehicle retail sales



77,395



70,164



10.3



18.8

Used vehicle wholesale sales



19,303



21,110



(8.6)



(1.4)

Total used



96,698



91,274



5.9



14.1

Parts and service



20,728



21,272



(2.6)



5.0

Finance and insurance



5,289



4,797



10.3



18.6

Total



$  274,682



$  252,201



8.9



17.1



















GROSS MARGIN %:

















New vehicle retail sales



6.3



6.9









Used vehicle retail sales



5.2



5.9









Used vehicle wholesale sales



(0.2)



(0.8)









Total used



4.1



4.4









Parts and service



57.4



55.2









Finance and insurance



100.0



100.0









Total



11.2



11.8



























GROSS PROFIT:

















New vehicle retail sales



$      9,572



$      9,303



2.9



9.9

Used vehicle retail sales



4,048



4,166



(2.8)



4.5

Used vehicle wholesale sales



(48)



(175)



(72.6)



(68.8)

Total used



4,000



3,991



0.2



7.7

Parts and service



11,898



11,748



1.3



9.1

Finance and insurance



5,289



4,797



10.3



18.6

Total



$    30,759



$    29,839



3.1



10.7



















UNITS SOLD:

















Retail new vehicles sold



4,494



3,773



19.1





Retail used vehicles sold



3,153



2,649



19.0





Wholesale used vehicles sold



2,328



2,183



6.6





Total used



5,481



4,832



13.4























AVERAGE RETAIL SALES PRICE:

















New vehicle retail



$    33,816



$    35,743



(5.4)



1.5

Used vehicle retail



$    24,546



$    26,487



(7.3)



(0.2)



















GROSS PROFIT PER UNIT SOLD:

















New vehicle retail sales



$      2,130



$      2,466



(13.6)



(7.7)

Used vehicle retail sales



1,284



1,573



(18.4)



(12.2)

Used vehicle wholesale sales



(21)



(80)



(73.8)



(70.7)

Total used



730



826



(11.6)



(5.1)

Finance and insurance (per retail unit)



$         692



$         747



(7.4)



(0.4)

OTHER:  (2)

















SG&A expenses



$    23,100



$    22,278



3.7



11.7

SG&A as % revenues



8.4



8.8









SG&A as % gross profit



75.1



74.7









Operating margin %



2.5



2.7































Nine Months Ended September 30,





2015



2014



% Change



Local Currency

% Change

REVENUES:

















New vehicle retail sales



$  410,135



$  397,264



3.2



12.5

Used vehicle retail sales



225,908



214,900



5.1



14.5

Used vehicle wholesale sales



60,167



62,304



(3.4)



5.3

Total used



286,075



277,204



3.2



12.4

Parts and service



60,632



62,838



(3.5)



5.1

Finance and insurance



15,043



13,915



8.1



17.8

Total



$  771,885



$  751,221



2.8



12.0



















GROSS MARGIN %:

















New vehicle retail sales



6.3



6.8









Used vehicle retail sales



5.3



5.9









Used vehicle wholesale sales



(0.3)











Total used



4.1



4.6









Parts and service



56.9



55.1









Finance and insurance



100.0



100.0









Total



11.3



11.7



























GROSS PROFIT:

















New vehicle retail sales



$    25,708



$    26,844



(4.2)



4.3

Used vehicle retail sales



11,868



12,684



(6.4)



2.0

Used vehicle wholesale sales



(169)



(5)



3,280.0



4,130.0

Total used



11,699



12,679



(7.7)



0.6

Parts and service



34,480



34,651



(0.5)



8.4

Finance and insurance



15,043



13,915



8.1



17.8

Total



$    86,930



$    88,089



(1.3)



7.5



















UNITS SOLD:

















Retail new vehicles sold



12,338



11,144



10.7





Retail used vehicles sold



9,302



8,108



14.7





Wholesale used vehicles sold



7,146



6,539



9.3





Total used



16,448



14,647



12.3























AVERAGE RETAIL SALES PRICE:

















New vehicle retail



$    33,242



$    35,648



(6.8)



1.6

Used vehicle retail



$    24,286



$    26,505



(8.4)



(0.2)



















GROSS PROFIT PER UNIT SOLD:

















New vehicle retail sales



$      2,084



$      2,409



(13.5)



(5.8)

Used vehicle retail sales



1,276



1,564



(18.4)



(11.1)

Used vehicle wholesale sales



(24)



(1)



2,300.0



3,770.7

Total used



711



866



(17.9)



(10.4)

Finance and insurance (per retail unit)



$         695



$         723



(3.9)



4.8



















OTHER: (2)

















SG&A expenses



$    66,414



$    67,064



(1.0)



7.9

SG&A as % revenues



8.6



8.9









SG&A as % gross profit



76.4



76.1









Operating margin %



2.4



2.5



























(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.





Additional Information - Same Store Brazil (1)





(Unaudited)





(Dollars in thousands, except per unit amounts)



























Three Months Ended September 30,





2015



2014



% Change



Local Currency

% Change

REVENUES:

















New vehicle retail sales



$    90,002



$  129,007



(30.2)



7.4

Used vehicle retail sales



20,342



27,499



(26.0)



14.4

Used vehicle wholesale sales



1,463



3,159



(53.7)



(30.4)

Total used



21,805



30,658



(28.9)



9.7

Parts and service



12,193



18,163



(32.9)



3.7

Finance and insurance



1,594



2,857



(44.2)



(12.4)

Total



$  125,594



$  180,685



(30.5)



7.1



















GROSS MARGIN %:

















New vehicle retail sales



6.4



6.4









Used vehicle retail sales



4.4



6.3









Used vehicle wholesale sales



6.4



7.3









Total used



4.5



6.4









Parts and service



41.7



43.1









Finance and insurance



100.0



100.0









Total



10.7



11.6



























GROSS PROFIT:

















New vehicle retail sales



$      5,728



$      8,257



(30.6)



6.2

Used vehicle retail sales



889



1,721



(48.3)



(20.0)

Used vehicle wholesale sales



93



231



(59.7)



(39.8)

Total used



982



1,952



(49.7)



(22.4)

Parts and service



5,079



7,825



(35.1)



0.2

Finance and insurance



1,594



2,857



(44.2)



(12.4)

Total



$    13,383



$    20,891



(35.9)



(1.3)



















UNITS SOLD:

















Retail new vehicles sold



3,511



3,465



1.3





Retail used vehicles sold



1,228



1,065



15.3





Wholesale used vehicles sold



401



454



(11.7)





Total used



1,629



1,519



7.2























AVERAGE RETAIL SALES PRICE:

















New vehicle retail



$    25,634



$    37,231



(31.1)



6.0

Used vehicle retail



$    16,565



$    25,821



(35.8)



(0.8)



















GROSS PROFIT PER UNIT SOLD:

















New vehicle retail sales



$      1,631



$      2,383



(31.6)



4.8

Used vehicle retail sales



724



1,616



(55.2)



(30.6)

Used vehicle wholesale sales



232



509



(54.4)



(31.9)

Total used



603



1,285



(53.1)



(27.6)

Finance and insurance (per retail unit)



$         336



$         631



(46.8)



(16.2)



















OTHER:(2)

















SG&A expenses



$    11,911



$    17,277



(31.1)



6.3

SG&A as % revenues



9.5



9.6









SG&A as % gross profit



89.0



82.7









Operating margin %



0.9



1.8































Nine Months Ended September 30,





2015



2014



% Change



Local Currency

% Change

REVENUES:

















New vehicle retail sales



$  271,960



$  380,047



(28.4)



(1.7)

Used vehicle retail sales



60,876



82,247



(26.0)



1.4

Used vehicle wholesale sales



6,437



11,142



(42.2)



(23.4)

Total used



67,313



93,389



(27.9)



(1.6)

Parts and service



39,527



50,825



(22.2)



6.7

Finance and insurance



5,172



7,425



(30.3)



(4.1)

Total



$  383,972



$  531,686



(27.8)



(0.9)



















GROSS MARGIN %:

















New vehicle retail sales



6.7



6.2









Used vehicle retail sales



4.4



6.2









Used vehicle wholesale sales



7.2



7.6









Total used



4.7



6.4









Parts and service



42.8



43.9









Finance and insurance



100.0



100.0









Total



11.3



11.2



























GROSS PROFIT:

















New vehicle retail sales



$    18,242



$    23,647



(22.9)



5.7

Used vehicle retail sales



2,691



5,088



(47.1)



(27.8)

Used vehicle wholesale sales



463



843



(45.1)



(27.8)

Total used



3,154



5,931



(46.8)



(27.8)

Parts and service



16,908



22,292



(24.2)



3.7

Finance and insurance



5,172



7,425



(30.3)



(4.1)

Total



$    43,476



$    59,295



(26.7)



0.4



















UNITS SOLD:

















Retail new vehicles sold



9,874



10,746



(8.1)





Retail used vehicles sold



3,379



3,523



(4.1)





Wholesale used vehicles sold



1,265



1,443



(12.3)





Total used



4,644



4,966



(6.5)























AVERAGE RETAIL SALES PRICE:

















New vehicle retail



$    27,543



$    35,366



(22.1)



7.0

Used vehicle retail



$    18,016



$    23,346



(22.8)



5.7



















GROSS PROFIT PER UNIT SOLD:

















New vehicle retail sales



$      1,847



$      2,201



(16.1)



15.1

Used vehicle retail sales



796



1,444



(44.9)



(24.7)

Used vehicle wholesale sales



366



584



(37.3)



(17.6)

Total used



679



1,194



(43.1)



(22.8)

Finance and insurance (per retail unit)



$         390



$         520



(25.0)



3.2



















OTHER: (2)

















SG&A expenses



$    39,429



$    52,736



(25.2)



2.3

SG&A as % revenues



10.3



9.9









SG&A as % gross profit



90.7



88.9









Operating margin %



0.7



1.0



























(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.





Additional Information - Same Store Consolidated (1)





(Unaudited)





(Dollars in thousands, except per unit amounts)



























Three Months Ended September 30,





2015



2014



% Change



Local Currency

% Change

REVENUES:

















New vehicle retail sales



$   1,514,167



$   1,463,601



3.5



7.5

Used vehicle retail sales



650,459



595,477



9.2



12.1

Used vehicle wholesale sales



87,497



96,628



(9.4)



(7.1)

Total used



737,956



692,105



6.6



9.4

Parts and service



288,631



279,378



3.3



6.3

Finance and insurance



103,835



95,158



9.1



10.5

Total



$   2,644,589



$   2,530,242



4.5



8.0



















GROSS MARGIN %:

















New vehicle retail sales



4.9



5.3









Used vehicle retail sales



6.9



7.3









Used vehicle wholesale sales



(1.9)



(1.3)









Total used



5.8



6.1









Parts and service



54.7



53.1









Finance and insurance



100.0



100.0









Total



14.3



14.4



























GROSS PROFIT:

















New vehicle retail sales



$        74,641



$        77,523



(3.7)



1.0

Used vehicle retail sales



44,670



43,379



3.0



4.8

Used vehicle wholesale sales



(1,700)



(1,249)



36.1



32.9

Total used



42,970



42,130



2.0



4.0

Parts and service



157,997



148,452



6.4



8.9

Finance and insurance



103,835



95,158



9.1



10.5

Total



$      379,443



$      363,263



4.5



7.1



















UNITS SOLD:

















Retail new vehicles sold



45,137



42,805



5.4





Retail used vehicles sold



31,137



27,975



11.3





Wholesale used vehicles sold



13,953



14,282



(2.3)





Total used



45,090



42,257



6.7























AVERAGE RETAIL SALES PRICE:

















New vehicle retail



$        33,546



$        34,192



(1.9)



2.0

Used vehicle retail



$        20,890



$        21,286



(1.9)



0.7



















GROSS PROFIT PER UNIT SOLD:

















New vehicle retail sales



$          1,654



$          1,811



(8.7)



(4.2)

Used vehicle retail sales



1,435



1,551



(7.5)



(5.8)

Used vehicle wholesale sales



(122)



(87)



40.2



36.1

Total used



953



997



(4.4)



(2.6)

Finance and insurance (per retail unit)



$          1,361



$          1,344



1.3



2.5



















OTHER:(2)

















SG&A expenses



$      274,596



$      263,669



4.1



7.3

SG&A as % revenues



10.4



10.4









SG&A as % gross profit



72.4



72.6









Operating margin %



3.5



3.5































Nine Months Ended September 30,





2015



2014



% Change



Local Currency

% Change

REVENUES:

















New vehicle retail sales



$   4,159,629



$   4,069,351



2.2



5.6

Used vehicle retail sales



1,836,722



1,682,086



9.2



11.7

Used vehicle wholesale sales



263,687



271,300



(2.8)



-

Total used



2,100,409



1,953,386



7.5



10.1

Parts and service



835,668



802,947



4.1



6.6

Finance and insurance



289,347



264,342



9.5



10.7

Total



$   7,385,053



$   7,090,026



4.2



7.1



















GROSS MARGIN %:

















New vehicle retail sales



5.0



5.3









Used vehicle retail sales



7.0



7.7









Used vehicle wholesale sales



0.2



1.1









Total used



6.2



6.8









Parts and service



54.1



53.1









Finance and insurance



100.0



100.0









Total



14.6



14.7



























GROSS PROFIT:

















New vehicle retail sales



$      205,941



$      217,647



(5.4)



(1.2)

Used vehicle retail sales



128,827



129,615



(0.6)



1.0

Used vehicle wholesale sales



436



2,939



(85.2)



(80.6)

Total used



129,263



132,554



(2.5)



(0.8)

Parts and service



451,890



426,286



6.0



8.2

Finance and insurance



289,347



264,342



9.5



10.7

Total



$   1,076,441



$   1,040,829



3.4



5.7



















UNITS SOLD:

















Retail new vehicles sold



123,680



119,326



3.6





Retail used vehicles sold



87,880



79,926



10.0





Wholesale used vehicles sold



39,943



39,211



1.9





Total used



127,823



119,137



7.3























AVERAGE RETAIL SALES PRICE:

















New vehicle retail



$        33,632



$        34,103



(1.4)



1.9

Used vehicle retail



$        20,900



$        21,046



(0.7)



1.6



















GROSS PROFIT PER UNIT SOLD:

















New vehicle retail sales



$          1,665



$          1,824



(8.7)



(4.7)

Used vehicle retail sales



1,466



1,622



(9.6)



(8.2)

Used vehicle wholesale sales



11



75



(85.3)



(81.0)

Total used



1,011



1,113



(9.2)



(7.6)

Finance and insurance (per retail unit)



$          1,368



$          1,327



3.1



4.3



















OTHER: (2)

















SG&A expenses



$      781,716



$      760,602



2.8



5.5

SG&A as % revenues



10.6



10.7









SG&A as % gross profit



72.6



73.1









Operating margin %



3.5



3.5



























(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 September 30,





2015



2014



% Change

SG&A RECONCILIATION:













As reported

$  248,771



$  221,645



12.2



  Pre-tax adjustments:













 Catastrophic events 



(1,099)







 Gain (loss) on real estate and dealership transactions 



14,303







Adjusted SG&A (1)

$  248,771



$  234,849



5.9















SG&A AS % REVENUES:













Unadjusted

10.6



10.2







Adjusted (1)

10.6



10.8





SG&A AS % GROSS PROFIT:













Unadjusted

71.4



68.8







Adjusted (1)

71.4



72.9





OPERATING MARGIN %













Unadjusted

3.8



4.0







Adjusted (1), (2)

3.8



3.6





PRETAX MARGIN %:













Unadjusted

2.9



2.0







Adjusted (1), (3)

2.9



2.6



















SAME STORE SG&A RECONCILIATION:



























As reported

$  239,585



$  225,236



6.4



  Pre-tax adjustments:













 Catastrophic events 



(1,099)







 Gain (loss) on real estate and dealership transactions 



(23)







Adjusted Same Store SG&A (1)

$  239,585



$  224,114



6.9















SAME STORE SG&A AS % REVENUES:













Unadjusted

10.7



10.7







Adjusted (1)

10.7



10.7





SAME STORE SG&A AS % GROSS PROFIT:













Unadjusted

71.5



72.1







Adjusted (1)

71.5



71.7





SAME STORE OPERATING MARGIN %













Unadjusted

3.8



3.7







Adjusted (1), (4)

3.8



3.8























 Nine Months Ended September 30, 





2015



2014



 % Change 

SG&A RECONCILIATION:













As reported

$  718,607



$  665,547



8.0



  Pre-tax adjustments:













 Catastrophic events 

(951)



(2,775)







 Gain (loss) on real estate and dealership transactions 

1,052



14,812







 Legal settlements 

(1,000)



(442)







Adjusted SG&A (1)

$  717,708



$  677,142



6.0















SG&A AS % REVENUES:













Unadjusted

10.8



11.0







Adjusted (1)

10.8



11.2





SG&A AS % OF GROSS PROFIT:













Unadjusted

71.5



71.7







Adjusted (1)

71.4



72.9





OPERATING MARGIN %:













 Unadjusted 

3.8



3.8







Adjusted (1), (2)

3.9



3.7





PRETAX MARGIN %:













Unadjusted

2.9



2.0







Adjusted (1), (3)

2.9



2.7



















SAME STORE SG&A RECONCILIATION:



























As reported

$  678,188



$  644,041



5.3



  Pre-tax adjustments:













 Catastrophic events 

(951)



(2,775)







 Gain (loss) on real estate and dealership transactions 

(364)



(23)







 Legal settlements 

(1,000)



(442)







Adjusted Same Store SG&A (1)

$  675,873



$  640,801



5.5















SAME STORE SG&A AS % REVENUES:













Unadjusted

10.9



11.1







Adjusted (1)

10.9



11.0





SAME STORE SG&A AS % GROSS PROFIT:













Unadjusted

71.7



72.1







Adjusted (1)

71.4



71.7





SAME STORE OPERATING MARGIN %













Unadjusted

3.8



3.8







Adjusted (1), (4)

3.9



3.9



















(1)

We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items.  These adjusted measures are not measures of financial performance under GAAP.  As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures.  We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations. 





(2)

Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $288 and $786 for the three and nine months ended September 30, 2015, respectively, and $4,252 and $5,973 for the three and nine months ended September 30, 2014, respectively.





(3)

Excludes the impact of SG&A reconciling items above, loss on redemption of long-term debt of $22,790 and $46,403 for the three and nine months ended September 30, 2014, respectively, as well as non-cash asset impairment charges of $288 and $786 for the three and nine months ended September 30, 2015 and $4,252 and $5,973 for the three and nine months ended September 30, 2014, respectively.





(4)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $288 and $786 for the three and nine months ended September 30, 2015, respectively, and $293 and $2,014 for the three and nine months ended September 30, 2014, respectively.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - U.K.

(Unaudited)

 (Dollars in thousands, except per share amounts)



















Three Months Ended September 30,





2015



2014



% Change

OPERATING MARGIN %













Unadjusted

2.1



2.7







Adjusted (1), (3)

2.2



2.7





PRETAX MARGIN %:













Unadjusted

1.6



2.3







Adjusted (1), (3)

1.7



2.3



















SAME STORE OPERATING MARGIN %













Unadjusted

2.4



2.7







Adjusted (1), (3)

2.5



2.7























 Nine Months Ended September 30, 





2015



2014



 % Change 

SG&A RECONCILIATION:



























As reported

$  81,528



$  67,063



21.6



  Pre-tax adjustments:













 Severance costs 

(208)









Adjusted SG&A (1)

$  81,320



$  67,063



21.3















SG&A AS % REVENUES:













Unadjusted

8.7



8.9







Adjusted (1)

8.7



8.9





SG&A AS % OF GROSS PROFIT:













Unadjusted

78.1



76.1







Adjusted (1)

77.9



76.1





OPERATING MARGIN %:













Unadjusted

2.1



2.5







Adjusted (1), (2)

2.1



2.5





PRETAX MARGIN %:













Unadjusted

1.6



2.1







Adjusted (1), (2)

1.7



2.1



















SAME STORE OPERATING MARGIN %













Unadjusted

2.3



2.5







Adjusted (1), (3)

2.4



2.5



















(1)

We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items.  These adjusted measures are not measures of financial performance under GAAP.  As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures.  We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations. 





(2)

Excludes the impact of SG&A reconciling item above, as well as non-cash asset impairment charges of $333 for the three and nine months ended September 30, 2015.





(3)

Excludes the impact of non-cash asset impairment charges of $333 for the three and nine months ended September 30, 2015.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Brazil

(Unaudited)

 (Dollars in thousands, except per share amounts)



















Three Months Ended September 30,





2015



2014



% Change

SG&A RECONCILIATION:













As reported

$  12,117



$  20,313



(40.3)



  Pre-tax adjustments:













 Severance costs 



(393)







Adjusted SG&A (1)

$  12,117



$  19,920



(39.2)















SG&A AS % REVENUES:













Unadjusted

9.4



10.2







Adjusted (1)

9.4



10.0





SG&A AS % GROSS PROFIT:













Unadjusted

87.8



88.6







Adjusted (1)

87.8



86.9





OPERATING MARGIN %













Unadjusted

0.8



(1.6)







Adjusted (1), (2)

1.0



1.2





PRETAX MARGIN %:













Unadjusted

0.4



(2.6)







Adjusted (1), (2)

0.6



0.2



















SAME STORE SG&A RECONCILIATION:



























As reported

$  11,911



$  17,566



(32.2)



  Pre-tax adjustments:













 Severance costs 



(289)







Adjusted Same Store SG&A (1)

$  11,911



$  17,277



(31.1)















SAME STORE SG&A AS % REVENUES:













Unadjusted

9.5



9.7







Adjusted (1)

9.5



9.6





SAME STORE SG&A AS % GROSS PROFIT:













Unadjusted

89.0



84.1







Adjusted (1)

89.0



82.7





SAME STORE OPERATING MARGIN %













Unadjusted

0.7



1.6







Adjusted (1), (3)

0.9



1.8























 Nine Months Ended September 30, 





2015



2014



 % Change 

SG&A RECONCILIATION:













As reported

$  40,915



$  61,151



(33.1)



  Pre-tax adjustments:













 Severance costs 



(393)







 Foreign transaction tax 



(416)







Adjusted SG&A (1)

$  40,915



$  60,342



(32.2)















SG&A AS % REVENUES:













Unadjusted

10.4



10.6







Adjusted (1)

10.4



10.5





SG&A AS % OF GROSS PROFIT:













Unadjusted

91.9



93.4







Adjusted (1)

91.9



92.2





OPERATING MARGIN %:













Unadjusted

0.3



(0.4)







Adjusted (1), (2)

0.6



0.6





PRETAX MARGIN %:













Unadjusted

(0.2)



(1.4)







Adjusted (1), (2)



(0.4)



















SAME STORE SG&A RECONCILIATION:



























As reported

$  39,429



$  53,441



(26.2)



  Pre-tax adjustments:













 Severance costs 



(289)







 Foreign transaction tax 



(416)







Adjusted Same Store SG&A (1)

$  39,429



$  52,736



(25.2)















SAME STORE SG&A AS % REVENUES:













Unadjusted

10.3



10.1







Adjusted (1)

10.3



9.9





SAME STORE SG&A AS % GROSS PROFIT:













Unadjusted

90.7



90.1







Adjusted (1)

90.7



88.9





SAME STORE OPERATING MARGIN %













Unadjusted

0.6



0.8







Adjusted (1), (3)

0.7



1.0



















(1)

We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items.  These adjusted measures are not measures of financial performance under GAAP.  As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures.  We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations. 





(2)

Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $298 and $839 for the three and nine months ended September 30, 2015, respectively, and $5,121 for the three and nine months ended September 30, 2014.





(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $298 for the three and nine months ended September 30, 2015.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - CONSOLIDATED

(Unaudited)

 (Dollars in thousands, except per share amounts)



















Three Months Ended September 30,





2015



2014



% Change















NET INCOME RECONCILIATION:













As reported

$    45,261



$    26,162



73.0



  Pre-tax adjustments:













Catastrophic events (5)



671







(Gain) loss on real estate and dealership transactions (6)



(8,572)







Severance costs (7)



388







Non-cash asset impairment (10)

776



6,559







Loss on extinguishment of long-term debt (11)



17,934







Non-deductible goodwill



(3,358)







Adjusted net income (1)

$    46,037



$    39,784



15.7















ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED













COMMON SHARES RECONCILIATION:













Adjusted net income (1)

$    46,037



$    39,784



15.7



Less: Adjusted earnings allocated to participating securities

1,759



1,520



15.7



Adjusted net income available to diluted common shares (1)

$    44,278



$    38,264



15.7















 DILUTED INCOME PER COMMON SHARE RECONCILIATION: 











As reported

$        1.88



$        1.03



82.5



  Pre-tax adjustments:













Catastrophic events 



0.03







Gain (loss) on real estate and dealership transactions 



(0.34)







Severance costs 



0.01







Non-cash asset impairment 

0.03



0.26







Loss on extinguishment of long-term debt 



0.71







Non-deductible goodwill



(0.13)







Adjusted diluted income per share (1)

$        1.91



$        1.57



21.7















SG&A RECONCILIATION:













As reported

$  289,012



$  264,233



9.4



  Pre-tax adjustments:













Catastrophic events 



(1,099)







Gain (loss) on real estate and dealership transactions 



14,303







Severance costs 



(393)







Adjusted SG&A (1)

$  289,012



$  277,044



4.3















SG&A AS % REVENUES:













Unadjusted

10.3



10.1







Adjusted (1)

10.3



10.5





SG&A AS % GROSS PROFIT:













Unadjusted

72.5



70.5







Adjusted (1)

72.5



73.9





OPERATING MARGIN %













Unadjusted

3.5



3.4







Adjusted (1), (2)

3.5



3.3





PRETAX MARGIN %:













Unadjusted

2.6



1.7







Adjusted (1), (3)

2.6



2.4



















SAME STORE SG&A RECONCILIATION:













As reported

$  274,596



$  265,080



3.6



  Pre-tax adjustments:













Catastrophic events 



(1,099)







Gain (loss) on real estate and dealership transactions 



(23)







Severance costs 



(289)







Adjusted Same Store SG&A (1)

$  274,596



$  263,669



4.1















SAME STORE SG&A AS % REVENUES:













Unadjusted

10.4



10.5







Adjusted (1)

10.4



10.4





SAME STORE SG&A AS % GROSS PROFIT:













Unadjusted

72.4



73.0







Adjusted (1)

72.4



72.6





SAME STORE OPERATING MARGIN %













Unadjusted

3.5



3.5







Adjusted (1), (4)

3.5



3.5























 Nine Months Ended September 30, 





2015



2014



 % Change 

NET INCOME RECONCILIATION:













As reported

$  127,385



$    74,327



71.4



  Pre-tax adjustments:













Catastrophic events (5)

593



1,710







(Gain) loss on real estate and dealership transactions (6)

(601)



(8,887)







Severance costs (7)

167



388







Legal settlements (8)

610



274







Foreign transaction tax (9)



274







Non-cash asset impairment (10)

1,624



7,626







Loss on extinguishment of long-term debt (11)



38,711







Non-deductible goodwill



(3,358)







Adjusted net income (1)

$  129,778



$  111,065



16.8















ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED













COMMON SHARES RECONCILIATION:













Adjusted net income (1)

$  129,778



$  111,065



16.8



Less: Adjusted earnings allocated to participating securities

4,997



4,126



21.1



Adjusted net income available to diluted common shares (1)

$  124,781



$  106,939



16.7















 DILUTED INCOME PER COMMON SHARE RECONCILIATION: 











As reported

$        5.26



$        2.82



86.5



  Pre-tax adjustments:













 Catastrophic events  

0.02



0.07







 Gain (loss) on real estate and dealership transactions  

(0.02)



(0.33)







 Severance costs  

0.01



0.01







 Legal settlements  

0.02



0.01







 Foreign transaction tax  



0.01







 Non-cash asset impairment  

0.07



0.29







 Loss on extinguishment of long-term debt  



1.47







 Non-deductible goodwill 



(0.13)







Adjusted diluted income per share (1)

$        5.36



$        4.22



27.0





























SG&A RECONCILIATION:













As reported

$  841,050



$  793,761



6.0



  Pre-tax adjustments:













 Catastrophic events  

(951)



(2,775)







 Gain (loss) on real estate and dealership transactions  

1,053



14,812







 Severance costs  

(208)



(393)







 Legal settlements  

(1,000)



(442)







 Foreign transaction tax  



(416)







Adjusted SG&A (1)

$  839,944



$  804,547



4.4















SG&A AS % REVENUES:













Unadjusted

10.6



10.7







Adjusted (1)

10.6



10.9





SG&A AS % OF GROSS PROFIT:













Unadjusted

72.9



73.4







Adjusted (1)

72.8



74.4





OPERATING MARGIN %:













Unadjusted

3.5



3.3







Adjusted (1), (2)

3.5



3.3





PRETAX MARGIN %:













Unadjusted

2.6



1.8







Adjusted (1), (3)

2.6



2.4



















SAME STORE SG&A RECONCILIATION:













As reported

$  784,031



$  764,546



2.5



  Pre-tax adjustments:













 Catastrophic events  

(951)



(2,774)







 Gain (loss) on real estate and dealership transactions  

(364)



(23)







 Severance costs  



(289)







 Legal settlements  

(1,000)



(442)







 Foreign transaction tax  



(416)







Adjusted Same Store SG&A (1)

$  781,716



$  760,602



2.8















SAME STORE SG&A AS % REVENUES:













Unadjusted

10.6



10.8







Adjusted (1)

10.6



10.7





SAME STORE SG&A AS % GROSS PROFIT:













Unadjusted

72.8



73.5







Adjusted (1)

72.6



73.1





SAME STORE OPERATING MARGIN %













Unadjusted

3.5



3.4







Adjusted (1), (4)

3.5



3.5



















(1)

We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items.  These adjusted measures are not measures of financial performance under GAAP.  As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures.  We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations. 





(2)

Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges for all periods.





(3)

Excludes the impact of SG&A reconciling items above, non-cash asset impairment charges for all periods, as well as loss on redemption of long-term debt of $22,790 and $46,403 for the three and nine months ended September 30, 2014, respectively.





(4)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $916 and $1,418 for the three and nine months ended September 30, 2015, respectively, and $293 and $2,014 for the three and nine months ended September 30, 2014, respectively.





(5)

Adjustment is net of tax benefit of $359 for the nine months ended September 30, 2015, and $428 and $1,065 for the three and nine months ended September 30, 2014, respectively, calculated utilizing the applicable federal and state tax rates for adjustment.





(6)

Adjustment is net of tax provision of $452 for the nine months ended September 30, 2015, and $5,731 and $5,925 for the three and nine months ended September 30, 2014, respectively, calculated utilizing the applicable federal and state tax rates for adjustment.





(7)

Adjustment is net of tax benefit of $42 for the nine months ended September 30, 2015, and $5 for the three and nine months ended September 30, 2014, calculated utilizing the applicable federal and state tax rates for adjustment.





(8)

Adjustment is net of tax benefit of $390 for the nine months ended September 30, 2015, and $168 for the nine months ended September 30, 2014, calculated utilizing the applicable federal and state tax rates for adjustment.





(9)

Adjustment is net of tax benefit of $141 for the nine months ended September 30, 2014, calculated utilizing the applicable federal and state tax rates for adjustment.





(10)

Adjustment is net of tax benefit of $143 and $334 for the three and nine months ended September 30, 2015, respectively, and $2,815 and $3,469 for the three and nine months ended September 30, 2014, respectively, calculated utilizing the applicable federal and state tax rates for adjustment.





(11)

Adjustment is net of tax benefit of $4,856 and $7,692 for the three and nine months ended September 30, 2014, respectively, calculated utilizing the applicable federal and state tax rates for adjustment.

 

Group 1 Automotive, Inc. Logo.

Logo - http://photos.prnewswire.com/prnh/20110930/MM78360LOGO

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/group-1-automotive-reports-record-third-quarter-earnings-300166629.html

SOURCE Group 1 Automotive, Inc.