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Group 1 Automotive Reports Fourth Quarter and Full Year Financial Results
PR Newswire
Sets Record Revenue of $10.6 Billion and Earnings of $6.87 Adjusted EPS for FY15
Also Announces Fourth Quarter Dividend & Increased Share Repurchase Authorization

HOUSTON, Feb. 11, 2016 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), ("Group 1" or the "Company"), an international, Fortune 500 automotive retailer, today reported 2015 fourth quarter adjusted net income of $35.7 million, a 12.3 percent decrease from the comparable prior year period, and adjusted diluted earnings per common share of $1.51, a 9.6 percent decrease for the period ended December 31, 2015. Total revenue for the fourth quarter grew 5.3 percent, to $2.7 billion.

Adjusted net income and diluted earnings per share exclude after-tax non-cash impairment charges of $72.8 million primarily related to franchise rights and goodwill for our Brazilian operations, partially offset by a $4.4 million gain on dealership and real estate transactions. On a GAAP basis, the 2015 fourth quarter net loss was $33.4 million.  Reconciliations of non-GAAP financial measures are included in the attached financial tables.

Full year 2015 adjusted net income increased 9.0 percent, to a record $165.5 million, and adjusted diluted earnings per common share increased 17.0 percent, to an all-time high of $6.87. Total revenue grew 7.0 percent, to a record $10.6 billion. On a GAAP basis, net income increased 1.1 percent from the comparable prior-year period to $94.0 million. Reconciliations of non-GAAP financial measures are included in the attached financial tables.

"While we delivered a record year in total for revenue, gross profit, and adjusted diluted earnings per share, our fourth quarter results were significantly hampered by the negative impact of continued oil and gas price decreases on the economy in our prime markets of Houston, Oklahoma and Texas in general," said Earl J. Hesterberg, Group 1's president and chief executive officer. "Additionally, we suffered from increased new and used vehicle margin pressure resulting from oversupply in a variety of key brands, especially in the U.S. luxury segment."

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

  • Total revenue increased 5.3 percent (8.2 percent on a constant currency basis), to $2.7 billion.
  • Total gross profit grew 3.9 percent, to $380.1 million.
  • New vehicle revenues increased 3.2 percent on 3.0 percent higher unit sales. New vehicle gross profit decreased 3.7 percent, to $80.1 million, as margins decreased 6.6 percent or $130 per unit, to $1,843.
  • Retail used vehicle revenues increased 11.0 percent on increased unit sales of 10.0 percent. Retail used vehicle gross profit was flat at $40.7 million, as margins decreased 9.2 percent or $136 per unit, to $1,346.
  • Parts and service gross profit increased 8.7 percent on revenue growth of 5.7 percent. Same Store parts and service gross profit increased 5.4 percent, with U.S. Same Store parts and service gross profit up 7.3 percent.
  • Finance and Insurance (F&I) gross profit per retail unit was flat at $1,374 per unit.
  • Adjusted Selling, General and Administrative (SG&A) expenses as a percent of gross profit increased 260 basis points, to 75.3 percent.
  • Quarter-to-date fully weighted common shares outstanding averaged 23.6 million shares, down 3.2 percent.

Consolidated Results for Full Year 2015 (year-over-year comparable basis)

  • Total gross profit grew 5.9 percent on 7.0 percent higher revenues of $10.6 billion.
  • New vehicle gross profit decreased 1.8 percent on 4.5 percent higher revenues, as the Company retailed 174,614 new vehicles in 2015.
  • Retail used vehicle gross profit was 3.4 percent higher on a 13.5 percent revenue increase, as the Company retailed 124,153 used units in 2015, a 13 percent increase over 2014 levels.
  • Parts and service gross profit rose 8.1 percent on 5.4 percent higher revenues.
  • F&I revenues rose 11.5 percent on 7.9 percent more retail unit sales; gross profit per retail unit was $1,368, an increase of $44 over 2014. U.S. Same Store F&I profit per retail unit grew $41, to $1,522.
  • Adjusted SG&A expenses as a percent of gross profit improved 50 basis points, to 73.4 percent, while Same Store SG&A (adjusted) as a percent of gross profit increased 40 basis points, to 73.2 percent.
  • Operating margin (adjusted) remained flat at 3.4 percent.

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

  • United States:
    The Company's U.S. revenues were $2.3 billion, an increase of 7.6 percent. The revenue growth was primarily explained by unit sales increases of 4.7 percent in new vehicles and 9.0 percent in retail used vehicles, as well as an increase of 7.5 percent in parts and service revenue. This revenue growth drove a gross profit increase of 5.2 percent, reflecting expanded parts and service margins of 130 basis points, offset by lower new and used retail gross profit per retail unit of $130 and $109, respectively.

    On a comparable adjusted basis, SG&A expense as a percent of gross profit increased 310 basis points to 74.0 percent, explained largely by margin pressures experienced in new and used vehicles. The Company's U.S. operations accounted for 84.7 percent of total revenues, 87.8 percent of total gross profit, and 93.0 percent of the Company's adjusted pretax income.

  • United Kingdom:
    The Company's U.K. operations accounted for 10.7 percent of total revenues, 8.8 percent of total gross profit, and 6.3 percent of the Company's adjusted pretax income. Total revenue increased 20.8 percent, to $285.1 million, and gross profit increased 22.0 percent. On a comparable adjusted basis, SG&A expense as a percent of gross profit improved 330 basis points to 81.6 percent.

  • Brazil:
    The Company's Brazilian operations accounted for 4.6 percent of total revenues, 3.4 percent of total gross profit, and 0.7 percent of the Company's adjusted pretax income. On a local currency, same store basis, revenues and gross profit decreased 2.2 percent and 5.3 percent, respectively, reflecting the ongoing impact of overall macroeconomic weakness in Brazil. Overall, new vehicle industry sales declined roughly 26 percent on a full year basis and 34 percent in the fourth quarter, as compared with the same period a year ago.  In this challenging environment, the Brazilian operations delivered an adjusted pre-tax operating profit for the quarter and full year.

Fourth Quarter 2015 Dividend

The Company announced today that its board of directors declared a cash dividend of $0.22 per share for the fourth quarter of 2015. The dividend will be payable on March 15, 2016, to stockholders of record as of March 1, 2016.

Share Repurchase Authorization

The Company also announced today that its board of directors increased the common stock share repurchase authorization to $150 million from $78.2 million, which was the remaining availability as of December 31, 2015 under the Company's prior common stock share repurchase authorization. During the fourth quarter of 2015, the Company repurchased 326,864 shares at an average price per share of $80.62 for a total of $26.4 million. For the full year of 2015, the Company repurchased 1,176,908 shares at an average price per share of $82.82 for a total of $97.5 million.

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.

Corporate Development

As announced last week, the Company acquired the Spire Automotive Group in the U.K., which consists of 12 dealerships in the greater London market. These dealerships are expected to generate approximately $575 million in annual revenues. The Company also divested 3 stores in the U.S. that generated approximately $160 million in trailing-twelve-month revenues. 

During 2015, the Company acquired a total of 3 dealerships, which are expected to generate an estimated $340 million in annual revenues. The Company also disposed of 5 dealerships that generated approximately $115 million in trailing-twelve-month revenues.

Year-to-date in 2016, the Company has disposed of 2 dealerships that generated approximately $75 million in trailing-twelve-month revenues.

Fourth Quarter 2015 Earnings Conference Call Details

Group 1's senior management will host a conference call today at 10 a.m. ET to discuss the fourth 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

Conference ID:  

3365357

 

A telephonic replay will be available following the call through February 17, 2016 by dialing:

Domestic:

1-877-344-7529

International:

1-412-317-0088

Replay ID: 

10079401

 

ABOUT GROUP 1 AUTOMOTIVE, INC.

Group 1 owns and operates 162 automotive dealerships, 212 franchises, and 37 collision centers in the United States, the United Kingdom and Brazil that offer 34 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service contracts; provides automotive maintenance and repair services; and sells vehicle parts.

Investors please visit www.group1corp.com, www.group1auto.com, www.group1collision.com, www.facebook.com/group1auto, and www.twitter.com/group1auto, where Group 1 discloses additional information about the Company, its business, and its results of operations. 

FORWARD-LOOKING STATEMENTS

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.

NON-GAAP FINANCIAL MEASURES

This press release and the attached financial tables contain certain non-GAAP financial measures as defined under SEC rules, such as adjusted net income and adjusted earnings per share from continuing operations, which exclude certain items disclosed in the attached financial tables. As required by SEC rules, the Company provides reconciliations of these measures to the most directly comparable GAAP measures. The Company believes that these non-GAAP financial measures improve the transparency of the Company's disclosure, provide a meaningful presentation of the Company's results from its core business operations excluding the impact of items not related to the Company's ongoing core business operations, and improve the period-to-period comparability of the Company's results from its core business operations.

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 December 31, 


2015


2014


% Increase/ (Decrease)

REVENUES:






New vehicle retail sales

$    1,533,108


$    1,485,473


3.2

Used vehicle retail sales

645,844


581,797


11.0

Used vehicle wholesale sales

95,064


94,652


0.4

Parts and service

297,254


281,354


5.7

Finance and insurance

101,332


95,664


5.9

Total revenues

2,672,602


2,538,940


5.3







COST OF SALES:






New vehicle retail sales

1,452,982


1,402,238


3.6

Used vehicle retail sales

605,137


541,053


11.8

Used vehicle wholesale sales

96,896


95,390


1.6

Parts and service

137,454


134,300


2.3

Total cost of sales

2,292,469


2,172,981


5.5







GROSS PROFIT

380,133


365,959


3.9







SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

279,785


268,203


4.3







DEPRECIATION AND AMORTIZATION EXPENSE

11,798


10,920


8.0







ASSET IMPAIRMENTS

85,606


30,426


181.4







OPERATING INCOME

2,944


56,410


(94.8)







OTHER EXPENSE:






Floorplan interest expense

(10,216)


(9,919)


3.0

Other interest expense, net

(14,843)


(13,367)


11.0

(LOSS) INCOME BEFORE INCOME TAXES

(22,115)


33,124


(166.8)







PROVISION FOR INCOME TAXES

(11,272)


(14,447)


(22.0)







NET (LOSS) INCOME

$       (33,387)


$         18,677


(278.8)

Less: (Loss) earnings allocated to participating securities

$         (1,279)


$              695


(284.0)

(Loss) earnings available to diluted common shares

$       (32,108)


$         17,982


(278.6)

DILUTED (LOSS) EARNINGS PER SHARE

$           (1.41)


$             0.77


(283.1)

Weighted average dilutive common shares outstanding

22,718


23,466


(3.2)

Weighted average participating securities

897


925


(3.0)

Total weighted average shares outstanding

23,615


24,391


(3.2)








 Twelve Months Ended December 31, 


2015


2014


% Increase/ (Decrease)

REVENUES:






New vehicle retail sales

$    6,001,306


$    5,741,619


4.5

Used vehicle retail sales

2,638,969


2,324,868


13.5

Used vehicle wholesale sales

397,251


379,143


4.8

Parts and service

1,186,193


1,125,694


5.4

Finance and insurance

408,786


366,565


11.5

Total revenues

10,632,505


9,937,889


7.0







COST OF SALES:






New vehicle retail sales

5,695,829


5,430,402


4.9

Used vehicle retail sales

2,459,499


2,151,346


14.3

Used vehicle wholesale sales

399,171


376,824


5.9

Parts and service

544,034


531,379


2.4

Total cost of sales

9,098,533


8,489,951


7.2







GROSS PROFIT

1,533,972


1,447,938


5.9







SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

1,120,833


1,061,964


5.5







DEPRECIATION AND AMORTIZATION EXPENSE

47,239


42,344


11.6







ASSET IMPAIRMENTS

87,562


41,520


110.9







OPERATING INCOME

278,338


302,110


(7.9)







OTHER EXPENSE:






Floorplan interest expense

(39,264)


(41,614)


(5.6)

Other interest expense, net

(56,903)


(49,693)


14.5

Loss on extinguishment of long-term debt


(46,403)


(100.0)

INCOME BEFORE INCOME TAXES

182,171


164,400


10.8







PROVISION FOR INCOME TAXES

(88,172)


(71,396)


23.5







NET INCOME

$         93,999


$         93,004


1.1

Less: Earnings allocated to participating securities

$           3,595


$           3,468


3.7

Earnings available to diluted common shares

$         90,404


$         89,536


1.0

DILUTED EARNINGS PER SHARE

$             3.90


$             3.60


8.3

Weighted average dilutive common shares outstanding

23,152


24,885


(7.0)

Weighted average participating securities

924


961


(3.9)

Total weighted average shares outstanding

24,076


25,846


(6.8)

 

Group 1 Automotive, Inc.

Consolidated Balance Sheets

(Dollars in thousands)










December 31, 2015


December 31, 2014


% Increase/ (Decrease)

 ASSETS: 


(Unaudited)





 CURRENT ASSETS: 







 Cash and cash equivalents 


$          13,037


$          40,975


(68.2)

 Contracts in transit and vehicle receivables, net 


252,438


237,448


6.3

 Accounts and notes receivable, net 


157,768


151,330


4.3

 Inventories, net 


1,737,751


1,556,705


11.6

 Deferred income taxes 


14,109


11,062


27.5

 Prepaid expenses and other current assets 


27,852


37,699


(26.1)

 Total current assets 


2,202,955


2,035,219


8.2

 PROPERTY AND EQUIPMENT, net 


1,033,981


950,388


8.8

 GOODWILL AND INTANGIBLE FRANCHISE RIGHTS 


1,162,503


1,134,324


2.5

 OTHER ASSETS 


15,490


21,561


(28.2)

 Total assets 


$     4,414,929


$     4,141,492


6.6








 LIABILITIES AND STOCKHOLDERS' EQUITY: 







 CURRENT LIABILITIES: 







 Floorplan notes payable - credit facility and other 


$     1,265,719


$     1,143,246


10.7

 Offset account related to floorplan notes payable - credit facility 


(110,759)


(39,616)


179.6

 Floorplan notes payable - manufacturer affiliates 


389,071


307,656


26.5

 Offset account related to floorplan notes payable - manufacturer affiliates 


(25,500)


(22,500)


13.3

 Current maturities of long-term debt and short-term financing 


55,193


72,630


(24.0)

 Accounts payable 


280,423


288,320


(2.7)

 Accrued expenses 


185,323


172,463


7.5

 Total current liabilities 


2,039,470


1,922,199


6.1

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


541,252


540,100


0.2

 5.25% SENIOR NOTES (principal of $300,000 at December 31, 2015) 


296,274



100.0

 REAL ESTATE CREDIT FACILITY, net of current maturities 


25,567


27,099


(5.7)

 ACQUISITION LINE 



69,713


(100.0)

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


292,188


319,984


(8.7)

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


48,155


51,941


(7.3)

 DEFERRED INCOME TAXES 


150,753


141,239


6.7

 LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES 


31,153


25,311


23.1

 OTHER LIABILITIES 


71,865


65,896


9.1

 STOCKHOLDERS' EQUITY: 







 Common stock 


257


257


-

 Additional paid-in capital 


291,092


286,854


1.5

 Retained earnings 


926,169


852,057


8.7

 Accumulated other comprehensive loss 


(137,984)


(81,984)


68.3

 Treasury stock 


(161,282)


(79,174)


103.7

 Total stockholders' equity 


918,252


978,010


(6.1)

 Total liabilities and stockholders' equity 


$     4,414,929


$     4,141,492


6.6

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)














Three Months Ended


Twelve Months Ended




December 31,


December 31,




2015 (%)


2014 (%)


2015 (%)


2014 (%)

NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:








Region

Geographic Market









East

Massachusetts


5.7


5.6


6.0


5.8


Georgia


4.4


4.2


4.5


4.6


Florida


2.6


1.3


2.1


1.4


New Jersey


2.2


2.7


2.3


3.1


New Hampshire


2.0


1.9


2.0


2.1


Louisiana


1.5


1.5


1.6


1.7


South Carolina


1.5


1.7


1.4


1.5


Mississippi


1.3


1.3


1.5


1.4


Alabama


0.9


0.8


0.8


0.8


Maryland


0.6


0.6


0.5


0.5


New York





1.3




22.7


21.6


22.7


24.2











West

Texas


39.0


39.2


38.7


36.2


California


10.0


9.2


9.7


9.5


Oklahoma


7.5


7.9


7.6


8.3


Kansas


2.0


2.1


2.1


2.3


Louisiana


0.6


0.6


0.7


0.6




59.1


59.0


58.8


56.9











International

United Kingdom


9.9


8.4


10.7


8.8


Brazil


8.3


11.0


7.8


10.1




100.0


100.0


100.0


100.0











NEW VEHICLE UNIT SALES BRAND MIX:









Toyota/Scion/Lexus


26.2


25.4


26.5


26.7

BMW/MINI


12.3


12.2


11.6


11.5

Honda/Acura


11.0


11.5


10.9


11.3

Ford/Lincoln


10.9


10.3


11.4


10.9

Nissan


8.1


9.7


8.4


9.4

Chevrolet/GMC/Buick/Cadillac


8.0


7.6


7.6


6.4

Volkswagen/Audi/Porsche


6.7


5.6


6.9


6.1

Hyundai/Kia


5.0


5.3


5.6


5.5

Mercedes-Benz/smart/Sprinter


4.9


5.2


4.3


4.5

Chrysler/Dodge/Jeep/RAM


4.4


4.1


4.6


4.4

Other


2.5


3.1


2.2


3.3




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 December 31,



2015


2014


% Increase/ (Decrease)

REVENUES:







New vehicle retail sales


$   1,295,513


$   1,220,209


6.2

Used vehicle retail sales


542,796


483,267


12.3

Used vehicle wholesale sales


72,548


70,682


2.6

Total used


615,344


553,949


11.1

Parts and service


260,974


242,833


7.5

Finance and insurance


92,645


87,423


6.0

Total


$   2,264,476


$   2,104,414


7.6








GROSS MARGIN %:







New vehicle retail sales


5.0


5.4



Used vehicle retail sales


6.6


7.3



Used vehicle wholesale sales


(1.6)


(0.7)



Total used


5.6


6.3



Parts and service


54.3


53.0



Finance and insurance


100.0


100.0



Total


14.7


15.1










GROSS PROFIT:







New vehicle retail sales


$        64,947


$        66,459


(2.3)

Used vehicle retail sales


35,746


35,329


1.2

Used vehicle wholesale sales


(1,167)


(508)


(129.7)

Total used


34,579


34,821


(0.7)

Parts and service


141,789


128,759


10.1

Finance and insurance


92,645


87,423


6.0

Total


$      333,960


$      317,462


5.2








UNITS SOLD:







Retail new vehicles sold


35,605


34,020


4.7

Retail used vehicles sold


25,564


23,446


9.0

Wholesale used vehicles sold


10,768


10,956


(1.7)

Total used


36,332


34,402


5.6








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$        36,386


$        35,867


1.4

Used vehicle retail


$        21,233


$        20,612


3.0








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$          1,824


$          1,954


(6.7)

Used vehicle retail sales


1,398


1,507


(7.2)

Used vehicle wholesale sales


(108)


(46)


(134.8)

Total used


952


1,012


(5.9)

Finance and insurance (per retail unit)


$          1,515


$          1,521


(0.4)

OTHER: (1)







SG&A expenses


$      247,203


$      225,168


9.8

SG&A as % revenues


10.9


10.7



SG&A as % gross profit


74.0


70.9



Operating margin %


3.4


3.9



Pretax margin %


2.3


2.9










INTEREST EXPENSE:







Floorplan interest expense


$        (9,622)


$        (8,571)


12.3

Floorplan assistance


13,128


11,525


13.9

Net floorplan income


$          3,506


$          2,954


18.7

Other interest expense, net


$      (13,744)


$      (12,189)


12.8

















Twelve Months Ended December 31,



2015


2014


% Increase/ (Decrease)

REVENUES:







New vehicle retail sales


$   4,989,290


$   4,669,512


6.8

Used vehicle retail sales


2,204,728


1,923,740


14.6

Used vehicle wholesale sales


289,580


279,074


3.8

Total used


2,494,308


2,202,814


13.2

Parts and service


1,032,960


966,672


6.9

Finance and insurance


377,432


336,243


12.2

Total


$   8,893,990


$   8,175,241


8.8








GROSS MARGIN %:







New vehicle retail sales


4.8


5.2



Used vehicle retail sales


7.2


7.8



Used vehicle wholesale sales


(0.5)


0.5



Total used


6.3


6.9



Parts and service


54.7


53.5



Finance and insurance


100.0


100.0



Total


15.1


15.2










GROSS PROFIT:







New vehicle retail sales


$      240,496


$      241,465


(0.4)

Used vehicle retail sales


157,652


149,942


5.1

Used vehicle wholesale sales


(1,334)


1,456


(191.6)

Total used


156,318


151,398


3.2

Parts and service


564,701


516,801


9.3

Finance and insurance


377,432


336,243


12.2

Total


$   1,338,947


$   1,245,907


7.5








UNITS SOLD:







Retail new vehicles sold


142,256


135,301


5.1

Retail used vehicles sold


105,211


93,813


12.1

Wholesale used vehicles sold


44,310


43,351


2.2

Total used


149,521


137,164


9.0








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$        35,073


$        34,512


1.6

Used vehicle retail


$        20,955


$        20,506


2.2








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$          1,691


$          1,785


(5.3)

Used vehicle retail sales


1,498


1,598


(6.3)

Used vehicle wholesale sales


(30)


34


(188.2)

Total used


1,045


1,104


(5.3)

Finance and insurance (per retail unit)


$          1,525


$          1,468


3.9








OTHER: (1)







SG&A expenses


$      964,911


$      902,311


6.9

SG&A as % revenues


10.8


11.0



SG&A as % gross profit


72.1


72.4



Operating margin %


3.7


3.8



Pretax margin %


2.7


2.8










INTEREST EXPENSE:







 Floorplan interest expense 


$      (36,062)


$      (34,060)


5.9

 Floorplan assistance 


49,631


44,494


11.5

 Net floorplan income 


$        13,569


$        10,434


30.0

 Other interest expense, net 


$      (52,277)


$      (46,516)


12.4


(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 - U.K.

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended December 31,



2015


2014


% Increase/ (Decrease)


Local Currency
% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$      149,465


$  121,874


22.6


27.9

Used vehicle retail sales


81,682


68,247


19.7


24.8

Used vehicle wholesale sales


22,013


19,931


10.4


14.9

Total used


103,695


88,178


17.6


22.6

Parts and service


25,200


20,904


20.6


25.7

Finance and insurance


6,706


5,070


32.3


38.1

Total


$      285,066


$  236,026


20.8


25.9










GROSS MARGIN %:









New vehicle retail sales


6.4


6.2





Used vehicle retail sales


5.1


6.0





Used vehicle wholesale sales


(3.2)


(2.6)





Total used


3.3


4.0





Parts and service


54.1


53.2





Finance and insurance


100.0


100.0





Total


11.7


11.6














GROSS PROFIT:









New vehicle retail sales


$          9,506


$      7,552


25.9


31.3

Used vehicle retail sales


4,172


4,088


2.1


6.2

Used vehicle wholesale sales


(699)


(528)


(32.4)


(37.8)

Total used


3,473


3,560


(2.4)


1.5

Parts and service


13,624


11,117


22.6


27.8

Finance and insurance


6,706


5,070


32.3


38.1

Total


$        33,309


$    27,299


22.0


27.3










UNITS SOLD:









Retail new vehicles sold


4,293


3,545


21.1



Retail used vehicles sold


3,211


2,664


20.5



Wholesale used vehicles sold


2,678


2,237


19.7



Total used


5,889


4,901


20.2












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$        34,816


$    34,379


1.3


5.6

Used vehicle retail


$        25,438


$    25,618


(0.7)


3.5










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$          2,214


$      2,130


3.9


8.4

Used vehicle retail sales


1,299


1,535


(15.4)


(11.9)

Used vehicle wholesale sales


(261)


(236)


(10.6)


(15.1)

Total used


590


726


(18.7)


(15.5)

Finance and insurance (per retail unit)


$             894


$         817


9.4


14.3

OTHER: (1)









SG&A expenses


$        27,191


$    23,176


17.3


22.3

SG&A as % revenues


9.5


9.8





SG&A as % gross profit


81.6


84.9





Operating margin %


1.7


1.3





Pretax margin %


1.3


0.9














INTEREST EXPENSE:









Floorplan interest expense


$           (587)


$        (474)


23.8


29.0

Floorplan assistance


259


146


77.4


84.1

Net floorplan expense


$           (328)


$        (328)


-


4.3

Other interest expense, net


$           (796)


$        (663)


20.1


25.1





















Twelve Months Ended December 31,



2015


2014


% Increase/ (Decrease)


Local Currency
% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$      641,888


$  519,137


23.6


33.3

Used vehicle retail sales


351,311


283,147


24.1


33.7

Used vehicle wholesale sales


100,706


82,235


22.5


32.0

Total used


452,017


365,382


23.7


33.3

Parts and service


102,183


83,747


22.0


31.4

Finance and insurance


24,117


18,986


27.0


36.8

Total


$   1,220,205


$  987,252


23.6


33.2










GROSS MARGIN %:









New vehicle retail sales


6.3


6.6





Used vehicle retail sales


5.2


5.9





Used vehicle wholesale sales


(1.1)


(0.6)





Total used


3.8


4.4





Parts and service


54.8


54.7





Finance and insurance


100.0


100.0





Total


11.3


11.7














GROSS PROFIT:









New vehicle retail sales


$        40,308


$    34,395


17.2


26.4

Used vehicle retail sales


18,335


16,772


9.3


17.8

Used vehicle wholesale sales


(1,083)


(532)


(103.6)


(113.8)

Total used


17,252


16,240


6.2


14.6

Parts and service


55,969


45,772


22.3


31.8

Finance and insurance


24,117


18,986


27.0


36.8

Total


$      137,646


$  115,393


19.3


28.6










UNITS SOLD:









Retail new vehicles sold


18,701


14,689


27.3



Retail used vehicles sold


14,074


10,772


30.7



Wholesale used vehicles sold


11,360


8,776


29.4



Total used


25,434


19,548


30.1












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$        34,324


$    35,342


(2.9)


4.7

Used vehicle retail


$        24,962


$    26,285


(5.0)


2.3










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$          2,155


$      2,342


(8.0)


(0.7)

Used vehicle retail sales


1,303


1,557


(16.3)


(9.8)

Used vehicle wholesale sales


(95)


(61)


(55.7)


(65.2)

Total used


678


831


(18.4)


(11.9)

Finance and insurance (per retail unit)


$             736


$         746


(1.3)


6.3










OTHER:(1)









SG&A expenses


$      108,511


$    90,239


20.2


29.5

SG&A as % revenues


8.9


9.1





SG&A as % gross profit


78.8


78.2





Operating margin %


2.0


2.2





Pretax margin %


1.6


1.8














INTEREST EXPENSE:









 Floorplan interest expense 


$        (2,276)


$     (1,662)


36.9


47.0

 Floorplan assistance 


843


651


29.5


40.0

 Net floorplan expense 


$        (1,433)


$     (1,011)


41.7


51.6

 Other interest expense, net 


$        (3,135)


$     (2,065)


51.8


62.9


(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 December 31,



2015


2014


% Increase/ (Decrease)


Local Currency
% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$    88,130


$  143,390


(38.5)


(7.0)

Used vehicle retail sales


21,366


30,283


(29.4)


7.2

Used vehicle wholesale sales


503


4,039


(87.5)


(81.1)

Total used


21,869


34,322


(36.3)


(3.2)

Parts and service


11,080


17,617


(37.1)


(4.4)

Finance and insurance


1,981


3,171


(37.5)


(5.2)

Total


$  123,060


$  198,500


(38.0)


(6.1)










GROSS MARGIN %:









New vehicle retail sales


6.4


6.4





Used vehicle retail sales


3.7


4.4





Used vehicle wholesale sales


6.8


7.4





Total used


3.8


4.7





Parts and service


39.6


40.7





Finance and insurance


100.0


100.0





Total


10.5


10.7














GROSS PROFIT:









New vehicle retail sales


$      5,673


$      9,224


(38.5)


(6.9)

Used vehicle retail sales


789


1,327


(40.5)


(8.8)

Used vehicle wholesale sales


34


298


(88.6)


(82.5)

Total used


823


1,625


(49.4)


(22.3)

Parts and service


4,387


7,178


(38.9)


(7.1)

Finance and insurance


1,981


3,171


(37.5)


(5.2)

Total


$    12,864


$    21,198


(39.3)


(7.9)










UNITS SOLD:









Retail new vehicles sold


3,586


4,632


(22.6)



Retail used vehicles sold


1,465


1,389


5.5



Wholesale used vehicles sold


287


645


(55.5)



Total used


1,752


2,034


(13.9)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$    24,576


$    30,956


(20.6)


20.2

Used vehicle retail


$    14,584


$    21,802


(33.1)


1.7










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$      1,582


$      1,991


(20.5)


20.3

Used vehicle retail sales


539


955


(43.6)


(13.5)

Used vehicle wholesale sales


118


462


(74.5)


(60.7)

Total used


470


799


(41.2)


(9.8)

Finance and insurance (per retail unit)


$         392


$         527


(25.6)


13.0

OTHER: (1)









SG&A expenses


$    11,847


$    17,810


(33.5)


1.0

SG&A as % revenues


9.6


9.0





SG&A as % gross profit


92.1


84.0





Operating margin %


0.6


1.4





Pretax margin %


0.3


0.7














INTEREST EXPENSE:









 Floorplan interest expense 


$            (7)


$        (874)


(99.2)


(98.6)

 Floorplan assistance 




-


-

 Net floorplan expense 


$            (7)


$        (874)


(99.2)


(98.6)

 Other interest expense, net 


$        (303)


$        (515)


(41.2)


(10.2)





















Twelve Months Ended December 31,



2015


2014


% Increase/ (Decrease)


Local Currency
% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$  370,128


$  552,970


(33.1)


(5.8)

Used vehicle retail sales


82,930


117,981


(29.7)


(0.7)

Used vehicle wholesale sales


6,965


17,834


(60.9)


(48.4)

Total used


89,895


135,815


(33.8)


(7.0)

Parts and service


51,050


75,275


(32.2)


(4.7)

Finance and insurance


7,237


11,336


(36.2)


(9.5)

Total


$  518,310


$  775,396


(33.2)


(6.0)










GROSS MARGIN %:









New vehicle retail sales


6.7


6.4





Used vehicle retail sales


4.2


5.8





Used vehicle wholesale sales


7.1


7.8





Total used


4.4


6.0





Parts and service


42.1


42.2





Finance and insurance


100.0


100.0





Total


11.1


11.2














GROSS PROFIT:









New vehicle retail sales


$    24,673


$    35,357


(30.2)


(2.1)

Used vehicle retail sales


3,483


6,808


(48.8)


(27.6)

Used vehicle wholesale sales


497


1,395


(64.4)


(53.3)

Total used


3,980


8,203


(51.5)


(32.0)

Parts and service


21,489


31,742


(32.3)


(5.3)

Finance and insurance


7,237


11,336


(36.2)


(9.5)

Total


$    57,379


$    86,638


(33.8)


(7.1)










UNITS SOLD:









Retail new vehicles sold


13,657


16,906


(19.2)



Retail used vehicles sold


4,868


5,288


(7.9)



Wholesale used vehicles sold


1,556


2,475


(37.1)



Total used


6,424


7,763


(17.2)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$    27,102


$    32,709


(17.1)


16.6

Used vehicle retail


$    17,036


$    22,311


(23.6)


7.8










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$      1,807


$      2,091


(13.6)


21.1

Used vehicle retail sales


715


1,287


(44.4)


(21.4)

Used vehicle wholesale sales


319


564


(43.4)


(25.8)

Total used


620


1,057


(41.3)


(17.8)

Finance and insurance (per retail unit)


$         391


$         511


(23.5)


8.5










OTHER: (1)









SG&A expenses


$    52,760


$    78,152


(32.5)


(5.3)

SG&A as % revenues


10.2


10.1





SG&A as % gross profit


92.0


90.2





Operating margin %


0.6


0.8





Pretax margin %


0.1


(0.1)














INTEREST EXPENSE:









 Floorplan interest expense 


$        (926)


$     (5,892)


(84.3)


(79.8)

 Floorplan assistance 




-


-

 Net floorplan expense 


$        (926)


$     (5,892)


(84.3)


(79.8)

 Other interest expense, net 


$     (1,491)


$     (1,112)


34.1


85.6


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

 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)

(Dollars in thousands, except per unit amounts)












Three Months Ended December 31,



2015


2014


% Increase/ (Decrease)


Local Currency
% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$      1,533,108


$    1,485,473


3.2


6.7

Used vehicle retail sales


645,844


581,797


11.0


13.5

Used vehicle wholesale sales


95,064


94,652


0.4


1.7

Total used


740,908


676,449


9.5


11.9

Parts and service


297,254


281,354


5.7


8.1

Finance and insurance


101,332


95,664


5.9


7.3

Total


$      2,672,602


$    2,538,940


5.3


8.2










GROSS MARGIN %:









New vehicle retail sales


5.2


5.6





Used vehicle retail sales


6.3


7.0





Used vehicle wholesale sales


(1.9)


(0.8)





Total used


5.2


5.9





Parts and service


53.8


52.3





Finance and insurance


100.0


100.0





Total


14.2


14.4














GROSS PROFIT:









New vehicle retail sales


$           80,126


$         83,235


(3.7)


0.3

Used vehicle retail sales


40,707


40,744


(0.1)


1.4

Used vehicle wholesale sales


(1,832)


(738)


(148.2)


(149.7)

Total used


38,875


40,006


(2.8)


(1.4)

Parts and service


159,800


147,054


8.7


10.6

Finance and insurance


101,332


95,664


5.9


7.3

Total


$         380,133


$       365,959


3.9


6.1










UNITS SOLD:









Retail new vehicles sold


43,484


42,197


3.0



Retail used vehicles sold


30,240


27,499


10.0



Wholesale used vehicles sold


13,733


13,838


(0.8)



Total used


43,973


41,337


6.4












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$           35,257


$         35,203


0.2


3.5

Used vehicle retail


$           21,357


$         21,157


0.9


3.2










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$             1,843


$           1,973


(6.6)


(2.7)

Used vehicle retail sales


1,346


1,482


(9.2)


(7.8)

Used vehicle wholesale sales


(133)


(53)


(150.9)


(151.6)

Total used


884


968


(8.7)


(7.3)

Finance and insurance (per retail unit)


$             1,374


$           1,373


0.1


1.4

OTHER: (1)









SG&A expenses


$         286,240


$       266,154


7.5


10.3

SG&A as % revenues


10.7


10.5





SG&A as % gross profit


75.3


72.7





Operating margin %


3.1


3.5





Pretax margin %


2.1


2.6














INTEREST EXPENSE:









 Floorplan interest expense 


$          (10,216)


$         (9,919)


3.0


3.3

 Floorplan assistance 


13,387


11,672


14.7


14.7

 Net floorplan expense 


$             3,171


$           1,753


80.9


79.3

 Other interest expense, net 


$          (14,843)


$       (13,367)


11.0


12.5





















Twelve Months Ended December 31,



2015


2014


% Increase/ (Decrease)


Local Currency
% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$      6,001,306


$    5,741,619


4.5


8.0

Used vehicle retail sales


2,638,969


2,324,868


13.5


16.2

Used vehicle wholesale sales


397,251


379,143


4.8


7.4

Total used


3,036,220


2,704,011


12.3


14.9

Parts and service


1,186,193


1,125,694


5.4


7.9

Finance and insurance


408,786


366,565


11.5


12.8

Total


$    10,632,505


$    9,937,889


7.0


10.1










GROSS MARGIN %:









New vehicle retail sales


5.1


5.4





Used vehicle retail sales


6.8


7.5





Used vehicle wholesale sales


(0.5)


0.6





Total used


5.8


6.5





Parts and service


54.1


52.8





Finance and insurance


100.0


100.0





Total


14.4


14.6














GROSS PROFIT:









New vehicle retail sales


$         305,477


$       311,217


(1.8)


2.4

Used vehicle retail sales


179,470


173,522


3.4


5.1

Used vehicle wholesale sales


(1,920)


2,319


(182.8)


(178.5)

Total used


177,550


175,841


1.0


2.7

Parts and service


642,159


594,315


8.1


10.2

Finance and insurance


408,786


366,565


11.5


12.8

Total


$      1,533,972


$    1,447,938


5.9


8.3










UNITS SOLD:









Retail new vehicles sold


174,614


166,896


4.6



Retail used vehicles sold


124,153


109,873


13.0



Wholesale used vehicles sold


57,226


54,602


4.8



Total used


181,379


164,475


10.3












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$           34,369


$         34,402


(0.1)


3.2

Used vehicle retail


$           21,256


$         21,160


0.5


2.8










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$             1,749


$           1,865


(6.2)


(2.2)

Used vehicle retail sales


1,446


1,579


(8.4)


(7.0)

Used vehicle wholesale sales


(34)


42


(181.0)


(174.9)

Total used


979


1,069


(8.4)


(6.9)

Finance and insurance (per retail unit)


$             1,368


$           1,324


3.3


4.5










OTHER: (1)









SG&A expenses


$      1,126,182


$    1,070,701


5.2


7.9

SG&A as % revenues


10.6


10.8





SG&A as % gross profit


73.4


73.9





Operating margin %


3.4


3.4





Pretax margin %


2.5


2.5














INTEREST EXPENSE:









 Floorplan interest expense 


$          (39,264)


$       (41,614)


(5.6)


(4.6)

 Floorplan assistance 


50,474


45,145


11.8


11.8

 Net floorplan expense 


$           11,210


$           3,531


217.5


205.3

 Other interest expense, net 


$          (56,903)


$       (49,693)


14.5


16.1


(1)These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for 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 December 31,



2015


2014


% Increase/ (Decrease)

REVENUES:







New vehicle retail sales


$   1,244,957


$   1,209,869


2.9

Used vehicle retail sales


525,560


479,760


9.5

Used vehicle wholesale sales


69,780


69,946


(0.2)

Total used


595,340


549,706


8.3

Parts and service


252,253


241,313


4.5

Finance and insurance


90,306


87,131


3.6

Total


$   2,182,856


$   2,088,019


4.5








GROSS MARGIN %:







New vehicle retail sales


5.0


5.4



Used vehicle retail sales


6.6


7.3



Used vehicle wholesale sales


(1.7)


(0.5)



Total used


5.6


6.3



Parts and service


54.4


53.0



Finance and insurance


100.0


100.0



Total


14.8


15.1










GROSS PROFIT:







New vehicle retail sales


$        62,570


$        65,838


(5.0)

Used vehicle retail sales


34,738


35,158


(1.2)

Used vehicle wholesale sales


(1,158)


(323)


(258.5)

Total used


33,580


34,835


(3.6)

Parts and service


137,198


127,921


7.3

Finance and insurance


90,306


87,131


3.6

Total


$      323,654


$      315,725


2.5








UNITS SOLD:







Retail new vehicles sold


34,526


33,813


2.1

Retail used vehicles sold


24,977


23,311


7.1

Wholesale used vehicles sold


10,533


10,891


(3.3)

Total used


35,510


34,202


3.8








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$        36,059


$        35,781


0.8

Used vehicle retail


$        21,042


$        20,581


2.2








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$          1,812


$          1,947


(6.9)

Used vehicle retail sales


1,391


1,508


(7.8)

Used vehicle wholesale sales


(110)


(30)


(266.7)

Total used


946


1,019


(7.2)

Finance and insurance (per retail unit)


$          1,518


$          1,525


(0.5)








OTHER:(2)







SG&A expenses


$      238,646


$      222,730


7.1

SG&A as % revenues


10.9


10.7



SG&A as % gross profit


73.7


70.5



Operating margin %


3.4


4.0












Twelve Months Ended December 31,



2015


2014


% Increase/ (Decrease)

REVENUES:







New vehicle retail sales


$   4,722,491


$   4,501,913


4.9

Used vehicle retail sales


2,075,497


1,864,698


11.3

Used vehicle wholesale sales


266,864


267,799


(0.3)

Total used


2,342,361


2,132,497


9.8

Parts and service


987,762


930,597


6.1

Finance and insurance


359,439


330,132


8.9

Total


$   8,412,053


$   7,895,139


6.5








GROSS MARGIN %:







New vehicle retail sales


4.8


5.2



Used vehicle retail sales


7.2


7.9



Used vehicle wholesale sales


(0.4)


0.7



Total used


6.3


7.0



Parts and service


54.4


53.4



Finance and insurance


100.0


100.0



Total


15.1


15.3










GROSS PROFIT:







New vehicle retail sales


$      224,561


$      232,997


(3.6)

Used vehicle retail sales


149,006


147,001


1.4

Used vehicle wholesale sales


(1,016)


1,777


(157.2)

Total used


147,990


148,778


(0.5)

Parts and service


537,701


497,265


8.1

Finance and insurance


359,439


330,132


8.9

Total


$   1,269,691


$   1,209,172


5.0








UNITS SOLD:







Retail new vehicles sold


135,994


131,249


3.6

Retail used vehicles sold


100,176


91,606


9.4

Wholesale used vehicles sold


42,065


42,120


(0.1)

Total used


142,241


133,726


6.4








AVERAGE RETAIL SALES PRICE:







New vehicle retail


$        34,726


$        34,301


1.2

Used vehicle retail


$        20,719


$        20,356


1.8








GROSS PROFIT PER UNIT SOLD:







New vehicle retail sales


$          1,651


$          1,775


(7.0)

Used vehicle retail sales


1,487


1,605


(7.4)

Used vehicle wholesale sales


(24)


42


(157.1)

Total used


1,040


1,113


(6.6)

Finance and insurance (per retail unit)


$          1,522


$          1,481


2.8








OTHER: (2)







SG&A expenses


$      914,520


$      863,534


5.9

SG&A as % revenues


10.9


10.9



SG&A as % gross profit


72.0


71.4



Operating margin %


3.7


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 December 31,



2015


2014


% Increase/ (Decrease)


Local Currency
% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$       123,981


$    111,083


11.6


16.5

Used vehicle retail sales


69,759


63,215


10.4


15.2

Used vehicle wholesale sales


17,680


17,586


0.5


4.8

Total used


87,439


80,801


8.2


12.9

Parts and service


19,993


19,288


3.7


8.2

Finance and insurance


5,610


4,798


16.9


22.1

Total


$       237,023


$    215,970


9.7


14.6










GROSS MARGIN %:









New vehicle retail sales


6.7


6.3





Used vehicle retail sales


5.3


6.3





Used vehicle wholesale sales


(2.6)


(2.3)





Total used


3.7


4.4





Parts and service


55.9


53.6





Finance and insurance


100.0


100.0





Total


11.9


11.9














GROSS PROFIT:









New vehicle retail sales


$           8,257


$        6,977


18.3


23.5

Used vehicle retail sales


3,679


3,964


(7.2)


(3.4)

Used vehicle wholesale sales


(462)


(402)


(14.9)


(20.0)

Total used


3,217


3,562


(9.7)


(6.0)

Parts and service


11,173


10,339


8.1


12.8

Finance and insurance


5,610


4,798


16.9


22.1

Total


$         28,257


$      25,676


10.1


14.9










UNITS SOLD:









Retail new vehicles sold


3,636


3,268


11.3



Retail used vehicles sold


2,781


2,480


12.1



Wholesale used vehicles sold


2,233


2,079


7.4



Total used


5,014


4,559


10.0












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$         34,098


$      33,991


0.3


4.7

Used vehicle retail


$         25,084


$      25,490


(1.6)


2.7










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$           2,271


$        2,135


6.4


11.0

Used vehicle retail sales


1,323


1,598


(17.2)


(13.8)

Used vehicle wholesale sales


(207)


(193)


(7.3)


(11.8)

Total used


642


781


(17.8)


(14.5)

Finance and insurance (per retail unit)


$              874


$           835


4.7


9.4

OTHER:  (2)









SG&A expenses


$         22,353


$      21,418


4.4


8.9

SG&A as % revenues


9.4


9.9





SG&A as % gross profit


79.1


83.4





Operating margin %


2.1


1.6

























Twelve Months Ended December 31,



2015


2014


% Increase/ (Decrease)


Local Currency
% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$       534,117


$    508,345


5.1


13.4

Used vehicle retail sales


295,667


278,116


6.3


14.7

Used vehicle wholesale sales


77,846


79,891


(2.6)


5.2

Total used


373,513


358,007


4.3


12.6

Parts and service


80,625


82,126


(1.8)


5.8

Finance and insurance


20,653


18,713


10.4


18.9

Total


$    1,008,908


$    967,191


4.3


12.6










GROSS MARGIN %:









New vehicle retail sales


6.4


6.7





Used vehicle retail sales


5.3


6.0





Used vehicle wholesale sales


(0.8)


(0.5)





Total used


4.0


4.5





Parts and service


56.6


54.8





Finance and insurance


100.0


100.0





Total


11.4


11.8














GROSS PROFIT:









New vehicle retail sales


$         33,967


$      33,820


0.4


8.4

Used vehicle retail sales


15,546


16,648


(6.6)


0.7

Used vehicle wholesale sales


(632)


(406)


(55.7)


(63.3)

Total used


14,914


16,242


(8.2)


(0.9)

Parts and service


45,652


44,990


1.5


9.4

Finance and insurance


20,653


18,713


10.4


18.9

Total


$       115,186


$    113,765


1.2


9.2










UNITS SOLD:









Retail new vehicles sold


15,974


14,412


10.8



Retail used vehicles sold


12,083


10,588


14.1



Wholesale used vehicles sold


9,379


8,618


8.8



Total used


21,462


19,206


11.7












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$         33,437


$      35,272


(5.2)


2.3

Used vehicle retail


$         24,470


$      26,267


(6.8)


0.5










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$           2,126


$        2,347


(9.4)


(2.2)

Used vehicle retail sales


1,287


1,572


(18.1)


(11.8)

Used vehicle wholesale sales


(67)


(47)


(42.6)


(50.1)

Total used


695


846


(17.8)


(11.3)

Finance and insurance (per retail unit)


$              736


$           749


(1.7)


6.0










OTHER: (2)









SG&A expenses


$         88,767


$      88,482


0.3


8.1

SG&A as % revenues


8.8


9.1





SG&A as % gross profit


77.1


77.8





Operating margin %


2.3


2.3






(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 December 31,



2015


2014


% Increase/ (Decrease)


Local Currency
% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$      88,131


$    139,763


(36.9)


(4.6)

Used vehicle retail sales


21,366


28,620


(25.3)


13.4

Used vehicle wholesale sales


502


3,666


(86.3)


(79.2)

Total used


21,868


32,286


(32.3)


2.9

Parts and service


11,080


15,387


(28.0)


9.3

Finance and insurance


1,967


3,086


(36.3)


(3.3)

Total


$    123,046


$    190,522


(35.4)


(2.2)










GROSS MARGIN %:









New vehicle retail sales


6.4


6.6





Used vehicle retail sales


3.7


4.5





Used vehicle wholesale sales


6.8


7.6





Total used


3.8


4.8





Parts and service


39.6


43.5





Finance and insurance


100.0


100.0





Total


10.4


10.8














GROSS PROFIT:









New vehicle retail sales


$        5,672


$        9,232


(38.6)


(7.0)

Used vehicle retail sales


791


1,284


(38.4)


(5.9)

Used vehicle wholesale sales


34


279


(87.8)


(81.3)

Total used


825


1,563


(47.2)


(19.3)

Parts and service


4,387


6,700


(34.5)


(0.6)

Finance and insurance


1,967


3,086


(36.3)


(3.3)

Total


$      12,851


$      20,581


(37.6)


(5.3)










UNITS SOLD:









Retail new vehicles sold


3,586


4,434


(19.1)



Retail used vehicles sold


1,465


1,275


14.9



Wholesale used vehicles sold


287


559


(48.7)



Total used


1,752


1,834


(4.5)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$      24,576


$      31,521


(22.0)


18.0

Used vehicle retail


$      14,584


$      22,447


(35.0)


(1.3)










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$        1,582


$        2,082


(24.0)


15.0

Used vehicle retail sales


540


1,007


(46.4)


(18.1)

Used vehicle wholesale sales


118


499


(76.4)


(63.6)

Total used


471


852


(44.7)


(15.5)

Finance and insurance (per retail unit)


$           389


$           541


(28.1)


9.3










OTHER:(2)









SG&A expenses


$      11,809


$      16,024


(26.3)


11.7

SG&A as % revenues


9.6


8.4





SG&A as % gross profit


91.9


77.9





Operating margin %


0.6


2.2

























Twelve Months Ended December 31,



2015


2014


% Increase/ (Decrease)


Local Currency
% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$    360,092


$    519,809


(30.7)


(2.6)

Used vehicle retail sales


82,242


110,867


(25.8)


4.7

Used vehicle wholesale sales


6,939


14,808


(53.1)


(38.3)

Total used


89,181


125,675


(29.0)


(0.4)

Parts and service


50,607


66,213


(23.6)


7.3

Finance and insurance


7,138


10,511


(32.1)


(3.8)

Total


$    507,018


$    722,208


(29.8)


(1.3)










GROSS MARGIN %:









New vehicle retail sales


6.6


6.3





Used vehicle retail sales


4.2


5.7





Used vehicle wholesale sales


7.2


7.6





Total used


4.5


6.0





Parts and service


42.1


43.8





Finance and insurance


100.0


100.0





Total


11.1


11.1














GROSS PROFIT:









New vehicle retail sales


$      23,915


$      32,879


(27.3)


1.9

Used vehicle retail sales


3,482


6,372


(45.4)


(22.8)

Used vehicle wholesale sales


497


1,122


(55.7)


(42.1)

Total used


3,979


7,494


(46.9)


(25.7)

Parts and service


21,295


28,992


(26.5)


2.7

Finance and insurance


7,138


10,511


(32.1)


(3.8)

Total


$      56,327


$      79,876


(29.5)


(1.2)










UNITS SOLD:









Retail new vehicles sold


13,460


15,180


(11.3)



Retail used vehicles sold


4,844


4,798


1.0



Wholesale used vehicles sold


1,552


2,002


(22.5)



Total used


6,396


6,800


(5.9)












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$      26,753


$      34,243


(21.9)


9.9

Used vehicle retail


$      16,978


$      23,107


(26.5)


3.7










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$        1,777


$        2,166


(18.0)


14.9

Used vehicle retail sales


719


1,328


(45.9)


(23.5)

Used vehicle wholesale sales


320


560


(42.9)


(25.4)

Total used


622


1,102


(43.6)


(21.0)

Finance and insurance (per retail unit)


$           390


$           526


(25.9)


4.9










OTHER: (2)









SG&A expenses


$      51,237


$      68,759


(25.5)


4.7

SG&A as % revenues


10.1


9.5





SG&A as % gross profit


91.0


86.1





Operating margin %


0.7


1.3






(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 December 31,



2015


2014


% Increase/ (Decrease)


Local Currency
% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$    1,457,069


$    1,460,715


(0.2)


3.2

Used vehicle retail sales


616,685


571,595


7.9


10.4

Used vehicle wholesale sales


87,962


91,198


(3.5)


(2.4)

Total used


704,647


662,793


6.3


8.6

Parts and service


283,326


275,988


2.7


5.1

Finance and insurance


97,883


95,015


3.0


4.4

Total


$    2,542,925


$    2,494,511


1.9


4.9










GROSS MARGIN %:









New vehicle retail sales


5.3


5.6





Used vehicle retail sales


6.4


7.1





Used vehicle wholesale sales


(1.8)


(0.5)





Total used


5.3


6.0





Parts and service


53.9


52.5





Finance and insurance


100.0


100.0





Total


14.3


14.5














GROSS PROFIT:









New vehicle retail sales


$         76,499


$         82,047


(6.8)


(2.8)

Used vehicle retail sales


39,208


40,406


(3.0)


(1.6)

Used vehicle wholesale sales


(1,586)


(446)


(255.6)


(255.7)

Total used


37,622


39,960


(5.9)


(4.4)

Parts and service


152,758


144,960


5.4


7.3

Finance and insurance


97,883


95,015


3.0


4.4

Total


$       364,762


$       361,982


0.8


2.9










UNITS SOLD:









Retail new vehicles sold


41,748


41,515


0.6



Retail used vehicles sold


29,223


27,066


8.0



Wholesale used vehicles sold


13,053


13,529


(3.5)



Total used


42,276


40,595


4.1












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$         34,902


$         35,185


(0.8)


2.6

Used vehicle retail


$         21,103


$         21,119


(0.1)


2.2










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$           1,832


$           1,976


(7.3)


(3.3)

Used vehicle retail sales


1,342


1,493


(10.1)


(8.8)

Used vehicle wholesale sales


(122)


(33)


(269.7)


(268.7)

Total used


890


984


(9.6)


(8.2)

Finance and insurance (per retail unit)


$           1,379


$           1,385


(0.4)


0.8










OTHER:(2)









SG&A expenses


$       272,808


$       260,172


4.9


7.6

SG&A as % revenues


10.7


10.4





SG&A as % gross profit


74.8


71.9





Operating margin %


3.2


3.7

























Twelve Months Ended December 31,



2015


2014


% Increase/ (Decrease)


Local Currency
% Increase/ (Decrease)

REVENUES:









New vehicle retail sales


$    5,616,700


$    5,530,067


1.6


5.0

Used vehicle retail sales


2,453,406


2,253,681


8.9


11.4

Used vehicle wholesale sales


351,649


362,498


(3.0)


(0.7)

Total used


2,805,055


2,616,179


7.2


9.7

Parts and service


1,118,994


1,078,936


3.7


6.2

Finance and insurance


387,230


359,356


7.8


9.0

Total


$    9,927,979


$    9,584,538


3.6


6.6










GROSS MARGIN %:









New vehicle retail sales


5.0


5.4





Used vehicle retail sales


6.8


7.5





Used vehicle wholesale sales


(0.3)


0.7





Total used


5.9


6.6





Parts and service


54.0


52.9





Finance and insurance


100.0


100.0





Total


14.5


14.6














GROSS PROFIT:









New vehicle retail sales


$       282,443


$       299,696


(5.8)


(1.7)

Used vehicle retail sales


168,034


170,021


(1.2)


0.4

Used vehicle wholesale sales


(1,151)


2,493


(146.2)


(141.4)

Total used


166,883


172,514


(3.3)


(1.7)

Parts and service


604,648


571,247


5.8


8.0

Finance and insurance


387,230


359,356


7.8


9.0

Total


$    1,441,204


$    1,402,813


2.7


5.0










UNITS SOLD:









Retail new vehicles sold


165,428


160,841


2.9



Retail used vehicles sold


117,103


106,992


9.5



Wholesale used vehicles sold


52,996


52,740


0.5



Total used


170,099


159,732


6.5












AVERAGE RETAIL SALES PRICE:









New vehicle retail


$         33,953


$         34,382


(1.2)


2.1

Used vehicle retail


$         20,951


$         21,064


(0.5)


1.8










GROSS PROFIT PER UNIT SOLD:









New vehicle retail sales


$           1,707


$           1,863


(8.4)


(4.4)

Used vehicle retail sales


1,435


1,589


(9.7)


(8.3)

Used vehicle wholesale sales


(22)


47


(146.8)


(141.2)

Total used


981


1,080


(9.2)


(7.7)

Finance and insurance (per retail unit)


$           1,371


$           1,342


2.2


3.4










OTHER: (2)









SG&A expenses


$    1,054,524


$    1,020,775


3.3


6.0

SG&A as % revenues


10.6


10.7





SG&A as % gross profit


73.2


72.8





Operating margin %


3.4


3.6






(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 December 31,



2015


2014


% Increase/ (Decrease)

SG&A RECONCILIATION:







As reported

$             240,001


$    226,146


6.1


  Pre-tax adjustments:







   Catastrophic events 

(637)





   Gain (loss) on real estate and dealership transactions 

7,839


(978)




Adjusted SG&A (1)

$             247,203


$    225,168


9.8








SG&A AS % REVENUES:







Unadjusted

10.6


10.7




Adjusted (1)

10.9


10.7



SG&A AS % GROSS PROFIT:







Unadjusted

71.9


71.2




Adjusted (1)

74.0


70.9



OPERATING MARGIN %







Unadjusted

2.9


3.4




Adjusted (1), (2)

3.4


3.9



PRETAX MARGIN %:







Unadjusted

1.9


2.4




Adjusted (1), (3)

2.3


2.9










SAME STORE SG&A RECONCILIATION:














As reported

$             239,738


$    223,907


7.1


  Pre-tax adjustments:







   Catastrophic events 

(637)





   Gain (loss) on real estate and dealership transactions 

(455)


(1,177)




Adjusted Same Store SG&A (1)

$             238,646


$    222,730


7.1








SAME STORE SG&A AS % REVENUES:







Unadjusted

11.0


10.7




Adjusted (1)

10.9


10.7



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

74.1


70.9




Adjusted (1)

73.7


70.5



SAME STORE OPERATING MARGIN %







Unadjusted

2.6


3.5




Adjusted (1), (4)

3.4


4.0












 Twelve Months Ended December 31, 



2015


2014


% Increase/ (Decrease)

SG&A RECONCILIATION:







As reported

$             958,608


$    891,693


7.5


  Pre-tax adjustments:







   Catastrophic events 

(1,588)


(2,775)




   Gain (loss) on real estate and dealership transactions 

8,891


13,835




   Legal settlements 

(1,000)


(442)




Adjusted SG&A (1)

$             964,911


$    902,311


6.9








SG&A AS % REVENUES:







Unadjusted

10.8


10.9




Adjusted (1)

10.8


11.0



SG&A AS % OF GROSS PROFIT:







Unadjusted

71.6


71.6




Adjusted (1)

72.1


72.4



OPERATING MARGIN %:







 Unadjusted 

3.6


3.7




Adjusted (1), (2)

3.7


3.8



PRETAX MARGIN %:







Unadjusted

2.6


2.1




Adjusted (1), (3)

2.7


2.8










SAME STORE SG&A RECONCILIATION:














As reported

$             917,927


$    867,951


5.8


  Pre-tax adjustments:







   Catastrophic events 

(1,588)


(2,775)




   Gain (loss) on real estate and dealership transactions 

(819)


(1,200)




   Legal settlements 

(1,000)


(442)




Adjusted Same Store SG&A (1)

$             914,520


$    863,534


5.9








SAME STORE SG&A AS % REVENUES:







Unadjusted

10.9


11.0




Adjusted (1)

10.9


10.9



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

72.3


71.8




Adjusted (1)

72.0


71.4



SAME STORE OPERATING MARGIN %







Unadjusted

3.5


3.7




Adjusted (1), (4)

3.7


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 $18,197 and $18,983 for the three and twelve months ended December 31, 2015, respectively, and $9,596 and $15,570 for the three and twelve months ended December 31, 2014, respectively.

(3)

Excludes the impact of SG&A reconciling items above, loss on redemption of long-term debt of $46,403 for the twelve months ended December 31, 2014, as well as non-cash asset impairment charges of $18,197 and $18,983 for the three and twelve months ended December 31, 2015 and $9,596 and $15,570 for the three and twelve months ended December 31, 2014, respectively.

(4)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $17,908 and $18,694 for the three and twelve months ended December 31, 2015, respectively, and $9,596 and $11,610 for the three and twelve months ended December 31, 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 December 31,



2015


2014


% Increase/ (Decrease)

SG&A RECONCILIATION:







As reported

$      27,191


$   23,364


16.4


  Pre-tax adjustments:







   Acquisition costs 


(188)




Adjusted SG&A (1)

$      27,191


$   23,176


17.3








SG&A AS % REVENUES:







Unadjusted

9.5


9.9




Adjusted (1)

9.5


9.8



SG&A AS % GROSS PROFIT:







Unadjusted

81.6


85.6




Adjusted (1)

81.6


84.9



OPERATING MARGIN %







Unadjusted

1.7


1.3




Adjusted (1), (2)

1.7


1.3



PRETAX MARGIN %:







Unadjusted

1.3


0.8




Adjusted (1), (2)

1.3


0.9










SAME STORE SG&A RECONCILIATION:














As reported

$      22,353


$   21,606


3.5


  Pre-tax adjustments:







   Acquisition costs 


(188)




Adjusted Same Store SG&A (1)

$      22,353


$   21,418


4.4








SAME STORE SG&A AS % REVENUES:







Unadjusted

9.4


10.0




Adjusted (1)

9.4


9.9



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

79.1


84.1




Adjusted (1)

79.1


83.4



SAME STORE OPERATING MARGIN %







Unadjusted

2.1


1.5




Adjusted (1), (2)

2.1


1.6












 Twelve Months Ended December 31, 



2015


2014


% Increase/ (Decrease)

SG&A RECONCILIATION:














As reported

$    108,719


$   90,427


20.2


  Pre-tax adjustments:







   Severance costs 

(208)





   Acquisition costs 


(188)




Adjusted SG&A (1)

$    108,511


$   90,239


20.2








SG&A AS % REVENUES:







Unadjusted

8.9


9.2




Adjusted (1)

8.9


9.1



SG&A AS % OF GROSS PROFIT:







Unadjusted

79.0


78.4




Adjusted (1)

78.8


78.2



OPERATING MARGIN %:







Unadjusted

2.0


2.2




Adjusted (1), (2)

2.0


2.2



PRETAX MARGIN %:







Unadjusted

1.5


1.8




Adjusted (1), (2)

1.6


1.8










SAME STORE SG&A RECONCILIATION:














As reported

$      88,767


$   88,670


0.1


  Pre-tax adjustments:







   Acquisition costs 


(188)




Adjusted Same Store SG&A (1)

$      88,767


$   88,482


0.3








SAME STORE SG&A AS % REVENUES:







Unadjusted

8.8


9.2




Adjusted (1)

8.8


9.1



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

77.1


77.9




Adjusted (1)

77.1


77.8



SAME STORE OPERATING MARGIN %







Unadjusted

2.3


2.3




Adjusted (1), (2)

2.3


2.3





(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 $333 for the twelve months ended December 31, 2015.

(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $333 for the twelve months ended December 31, 2015.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Brazil

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended December 31,



2015


2014


% Increase/ (Decrease)

SG&A RECONCILIATION:







As reported

$  12,593


$  18,693


(32.6)


  Pre-tax adjustments:







   Gain (loss) on real estate and dealership transactions 

(520)


(495)




   Severance costs 

(226)


(388)




Adjusted SG&A (1)

$  11,847


$  17,810


(33.5)








SG&A AS % REVENUES:







Unadjusted

10.2


9.4




Adjusted (1)

9.6


9.0



SG&A AS % GROSS PROFIT:







Unadjusted

97.9


88.2




Adjusted (1)

92.1


84.0



OPERATING MARGIN %







Unadjusted

(54.8)


(9.5)




Adjusted (1), (2)

0.6


1.4



PRETAX MARGIN %:







Unadjusted

(55.0)


(10.2)




Adjusted (1), (2)

0.3


0.7










SAME STORE SG&A RECONCILIATION:














As reported

$  12,035


$  16,064


(25.1)


  Pre-tax adjustments:







   Severance costs 

(226)


(40)




Adjusted Same Store SG&A (1)

$  11,809


$  16,024


(26.3)








SAME STORE SG&A AS % REVENUES:







Unadjusted

9.8


8.4




Adjusted (1)

9.6


8.4



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

93.7


78.1




Adjusted (1)

91.9


77.9



SAME STORE OPERATING MARGIN %







Unadjusted

(54.4)


(8.7)




Adjusted (1), (3)

0.6


2.2












 Twelve Months Ended December 31, 



2015


2014


% Increase/ (Decrease)

SG&A RECONCILIATION:







As reported

$  53,506


$  79,844


(33.0)


  Pre-tax adjustments:







   Gain (loss) on real estate and dealership transactions 

(520)


(495)




   Severance costs 

(226)


(781)




   Foreign transaction tax 


(416)




Adjusted SG&A (1)

$  52,760


$  78,152


(32.5)








SG&A AS % REVENUES:







Unadjusted

10.3


10.3




Adjusted (1)

10.2


10.1



SG&A AS % OF GROSS PROFIT:







Unadjusted

93.3


92.2




Adjusted (1)

92.0


90.2



OPERATING MARGIN %:







Unadjusted

(12.8)


(2.8)




Adjusted (1), (2)

0.6


0.8



PRETAX MARGIN %:







Unadjusted

(13.2)


(3.7)




Adjusted (1), (2)

0.1


(0.1)










SAME STORE SG&A RECONCILIATION:














As reported

$  51,463


$  69,504


(26.0)


  Pre-tax adjustments:







   Severance costs 

(226)


(329)




   Foreign transaction tax 


(416)




Adjusted Same Store SG&A (1)

$  51,237


$  68,759


(25.5)








SAME STORE SG&A AS % REVENUES:







Unadjusted

10.2


9.6




Adjusted (1)

10.1


9.5



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

91.4


87.0




Adjusted (1)

91.0


86.1



SAME STORE OPERATING MARGIN %







Unadjusted

(12.7)


(1.7)




Adjusted (1), (3)

0.7


1.3





(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 $67,410 and $68,249 for the three and twelve months ended December 31, 2015, respectively, and $20,829 and $25,950 for the three and twelve months ended December 31, 2014, respectively.

(3)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $67,410 and $67,708 for the three and twelve months ended December 31, 2015, respectively, and $20,778 for the three and twelve months ended December 31, 2014.

 

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - CONSOLIDATED

(Unaudited)

 (Dollars in thousands, except per share amounts)










Three Months Ended December 31,



2015


2014


% Increase/ (Decrease)








NET (LOSS) INCOME RECONCILIATION:







As reported

$      (33,387)


$        18,677


(278.8)


  Pre-tax adjustments:







  Catastrophic events (5)

398





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

(4,357)


1,550




  Severance costs (7)

220


385




  Acquisition costs including related tax impact


188




  Non-cash asset impairment (10)

72,798


19,878




Adjusted net income (1)

$        35,672


$        40,678


(12.3)








ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED







COMMON SHARES RECONCILIATION:







Adjusted net income (1)

$        35,672


$        40,678


(12.3)


Less: Adjusted earnings allocated to participating securities

1,344


1,529


(12.1)


Adjusted net income available to diluted common shares (1)

$        34,328


$        39,149


(12.3)








 DILUTED (LOSS) INCOME PER COMMON SHARE RECONCILIATION: 






As reported

$          (1.41)


$            0.77


(283.1)


  Pre-tax adjustments:







  Catastrophic events 

0.02





  (Gain) loss on real estate and dealership transactions 

(0.18)


0.06




  Severance costs 

0.01


0.02




  Acquisition costs including related tax impact


0.01




  Non-cash asset impairment 

3.07


0.81




Adjusted diluted income per share (1)

$            1.51


$            1.67


(9.6)








SG&A RECONCILIATION:







As reported

$      279,785


$      268,203


4.3


  Pre-tax adjustments:







  Catastrophic events 

(637)





  Gain (loss) on real estate and dealership transactions 

7,318


(1,473)




  Severance costs 

(226)


(388)




  Acquisition costs


(188)




Adjusted SG&A (1)

$      286,240


$      266,154


7.5








SG&A AS % REVENUES:







Unadjusted

10.5


10.6




Adjusted (1)

10.7


10.5



SG&A AS % GROSS PROFIT:







Unadjusted

73.6


73.3




Adjusted (1)

75.3


72.7



OPERATING MARGIN %







Unadjusted

0.1


2.2




Adjusted (1), (2)

3.1


3.5



PRETAX MARGIN %:







Unadjusted

(0.8)


1.3




Adjusted (1), (2)

2.1


2.6










SAME STORE SG&A RECONCILIATION:







As reported

$      274,126


$      261,577


4.8


  Pre-tax adjustments:







  Catastrophic events 

(637)





  Loss on real estate and dealership transactions 

(455)


(1,177)




  Severance costs 

(226)


(40)




  Acquisition costs


(188)




Adjusted Same Store SG&A (1)

$      272,808


$      260,172


4.9








SAME STORE SG&A AS % REVENUES:







Unadjusted

10.8


10.5




Adjusted (1)

10.7


10.4



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

75.2


72.3




Adjusted (1)

74.8


71.9



SAME STORE OPERATING MARGIN %







Unadjusted

(0.2)


2.4




Adjusted (1), (4)

3.2


3.7












 Twelve Months Ended December 31, 



2015


2014


% Increase/ (Decrease)

NET INCOME RECONCILIATION:







As reported

$        93,999


$        93,004


1.1


  Pre-tax adjustments:







  Catastrophic events (5)

991


1,710




  Gain on real estate and dealership transactions (6)

(4,959)


(7,337)




  Severance costs (7)

387


773




  Acquisition costs including related tax impact


188




  Legal settlements (8)

610


274




  Foreign transaction tax (9)


274




  Non-cash asset impairment (10)

74,422


27,504




  Loss on extinguishment of long-term debt (11)


38,711




  Non-deductible goodwill


(3,358)




Adjusted net income (1)

$      165,450


$      151,743


9.0








ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED







COMMON SHARES RECONCILIATION:







Adjusted net income (1)

$      165,450


$      151,743


9.0


Less: Adjusted earnings allocated to participating securities

6,338


5,652


12.1


Adjusted net income available to diluted common shares (1)

$      159,112


$      146,091


8.9








 DILUTED INCOME PER COMMON SHARE RECONCILIATION: 






As reported

$            3.90


$            3.60


8.3


  Pre-tax adjustments:







  Catastrophic events 

0.04


0.07




  Gain on real estate and dealership transactions 

(0.21)


(0.28)




  Severance costs 

0.02


0.03




  Acquisition costs including related tax impact


0.01




  Legal settlements 

0.03


0.01




  Foreign transaction tax 


0.01




  Non-cash asset impairment 

3.09


1.05




  Loss on extinguishment of long-term debt 


1.50




  Non-deductible goodwill


(0.13)




Adjusted diluted income per share (1)

$            6.87


$            5.87


17.0















SG&A RECONCILIATION:







As reported

$   1,120,833


$   1,061,964


5.5


  Pre-tax adjustments:







  Catastrophic events 

(1,588)


(2,775)




  Gain on real estate and dealership transactions 

8,372


13,339




  Severance costs 

(435)


(781)




  Acquisition costs


(188)




  Legal settlements 

(1,000)


(442)




  Foreign transaction tax 


(416)




Adjusted SG&A (1)

$   1,126,182


$   1,070,701


5.2








SG&A AS % REVENUES:







Unadjusted

10.5


10.7




Adjusted (1)

10.6


10.8



SG&A AS % OF GROSS PROFIT:







Unadjusted

73.1


73.3




Adjusted (1)

73.4


73.9



OPERATING MARGIN %:







Unadjusted

2.6


3.0




Adjusted (1), (2)

3.4


3.4



PRETAX MARGIN %:







Unadjusted

1.7


1.7




Adjusted (1), (2)

2.5


2.5










SAME STORE SG&A RECONCILIATION:







As reported

$   1,058,157


$   1,026,125


3.1


  Pre-tax adjustments:







  Catastrophic events 

(1,588)


(2,775)




  Loss on real estate and dealership transactions 

(819)


(1,200)




  Severance costs 

(226)


(329)




  Acquisition costs


(188)




  Legal settlements 

(1,000)


(442)




  Foreign transaction tax 


(416)




Adjusted Same Store SG&A (1)

$   1,054,524


$   1,020,775


3.3








SAME STORE SG&A AS % REVENUES:







Unadjusted

10.7


10.7




Adjusted (1)

10.6


10.7



SAME STORE SG&A AS % GROSS PROFIT:







Unadjusted

73.4


73.1




Adjusted (1)

73.2


72.8



SAME STORE OPERATING MARGIN %







Unadjusted

2.5


3.2




Adjusted (1), (4)

3.4


3.6





(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 $46,403 for the twelve months ended December 31, 2014.

(4)

Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $85,318 and $86,735 for the three and twelve months ended December 31, 2015, respectively, and $30,374 and $32,388 for the three and twelve months ended December 31, 2014, respectively.

(5)

Adjustment is net of tax benefit of $239 and $597 for the three and twelve months ended December 31, 2015, respectively, and $1,065 for the twelve months ended December 31, 2014, calculated utilizing the applicable federal and state tax rates for adjustment.

(6)

Adjustment is net of tax provision of $2,962 and $3,413 for the three and twelve months ended December 31, 2015, respectively, and $77 and $6,002 for the three and twelve months ended December 31, 2014, respectively, calculated utilizing the applicable federal and state tax rates for adjustment.

(7)

Adjustment is net of tax benefit of $7 and $48 for the three and twelve months ended December 31, 2015, respectively, and $3 and $8 for the three and twelve months ended December 31, 2014, respectively, calculated utilizing the applicable federal and state tax rates for adjustment.

(8)

Adjustment is net of tax benefit of $390 for the twelve months ended December 31, 2015, and $168 for the twelve months ended December 31, 2014, calculated utilizing the applicable federal and state tax rates for adjustment.

(9)

Adjustment is net of tax benefit of $141 for the twelve months ended December 31, 2014, calculated utilizing the applicable federal and state tax rates for adjustment.

(10)

Adjustment is net of tax benefit of $12,809 and $13,143 for the three and twelve months ended December 31, 2015, respectively, and $10,547 and $14,016 for the three and twelve months ended December 31, 2014, respectively, calculated utilizing the applicable federal and state tax rates for adjustment.

(11)

Adjustment is net of tax benefit of $7,692 for the twelve months ended December 31, 2014, calculated utilizing the applicable federal and state tax rates for adjustment.

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SOURCE Group 1 Automotive, Inc.

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