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Group 1 Automotive Announces Second Quarter 2019 Financial Results

Strong Results Driven by Significant Increase in U.S. Same Store Parts & Service Revenue and Record U.S. F&I Profit per Unit Performance

HOUSTON, July 25, 2019 /PRNewswire/ -- Group 1 Automotive, Inc. (GPI), ("Group 1" or the "Company"), an international, Fortune 500 automotive retailer, today reported 2019 second quarter net income of $49.2 million, diluted earnings per common share of $2.64, adjusted net income (a non-GAAP measure) of $52.8 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $2.83.

Second quarter 2019 adjusted net income and diluted earnings per share exclude approximately $3.5 million net after-tax adjustments, or $0.19 per common share. These adjustments consist primarily of $3.0 million related to catastrophic weather events, or $0.16 per common share; and non-cash asset impairments of $0.5 million, or $0.03 per common share.

"We delivered a strong quarter based on exceptional results in the U.S. despite a soft new vehicle sales market.  Record Same Store parts and service revenue growth of more than 10 percent and record F&I per retail unit profitability drove Same Store gross profit growth of 8.5 percent," said Earl J. Hesterberg, Group 1's president and chief executive officer.  "This performance demonstrates that we can continue to increase profits in a less than optimal new vehicle sales environment."

"In contrast to our strong U.S. performance, we saw significant weakness in our U.K. operations.  Weak overall market conditions stemming from BREXIT uncertainty were compounded by a decline in used vehicle market values.  We are in the midst of a significant cost reduction effort in the U.K. to respond to these market fluctuations," added Hesterberg.

Consolidated Results for Second Quarter 2019 (year-over-year comparable basis)

For ease of comparison, we have included constant currency metrics (a non-GAAP measure) both below (shown in parenthesis) and in the financial tables that follow:

  • Total revenue grew 2.1 percent (3.7 percent), to $3.0 billion.
  • Total gross profit grew 3.7 percent (4.8 percent), to $454.3 million.
  • New vehicle revenues increased 0.6 percent (2.2 percent), despite a slight decrease in unit sales. New vehicle gross profit decreased 9.0 percent (decreased 7.7 percent), to $69.7 million, largely explained by the decision to forego certain OEM volume bonuses in the U.K. by not self-registering vehicles this quarter.
  • Retail used vehicle revenues increased 2.1 percent (3.7 percent) on 4.6 percent higher unit sales. Retail used vehicle gross profit increased 4.1 percent (5.4 percent), to $53.3 million. Total used vehicle gross profit was up 3.4 percent (4.7 percent), to $53.2 million. In the U.S., the Val-u-Line® initiative the Company launched last year has continued to build momentum, with Same Store used retail unit sales increasing 7.0 percent, and Val-u-Line® units growing to over 11 percent of the mix.  
  • Parts and service gross profit increased 4.6 percent (5.8 percent), to $204.1 million, on revenue growth of 5.6 percent (6.8 percent). Same Store parts and service gross profit increased 6.0 percent (7.2 percent) on Same Store parts and service revenue growth of 7.9 percent (9.1 percent). U.S. Same Store parts and service revenue increased by 10.1 percent, establishing a new all-time quarterly growth record.
  • Finance and Insurance (F&I) gross profit per retail unit (PRU) increased 10.1 percent (11.0 percent), to $1,555 and total F&I gross profit increased $12.2 million, or 10.6 percent (11.5 percent), to $127.3 million. Same Store U.S. F&I PRU increased $161, or 9.7 percent, to a new all-time record of $1,821 per unit.
  • Selling, General and Administrative (SG&A) expenses as a percent of gross profit increased 430 basis points, to 74.6 percent. Adjusted Same Store SG&A as a percent of gross profit increased 80 basis points, to 73.6 percent, which is more than explained by gross profit deterioration in the U.K., partially offset by U.S. Same Store SG&A as a percent of gross profit, which decreased 60 basis points, to 71.1 percent, and adjusted Same Store U.S. SG&A as a percent of gross profit, which decreased 40 basis points, to 70.0 percent.

Segment Results for Second Quarter 2019 (year-over-year comparable basis)

  • United States:

    The Company's U.S. operations accounted for 75.8 percent of total revenues and 82.9 percent of total gross profit. Total Same Store U.S. revenues were up 6.1 percent. These results were driven by double-digit growth in Same Store F&I revenue (up 13.4 percent), parts and service revenue (up 10.1 percent), as well as mid-single digit gains in used retail revenue (up 5.9 percent), and new vehicle retail revenue (up 4.6 percent). Same Store F&I gross profit PRU increased $161, or 9.7 percent per unit, to $1,821, and Same Store total gross profit grew 8.5 percent.

    Same Store new vehicle retail gross profit PRU declined $39, to $1,810. Same Store total used vehicle gross profit PRU increased 5.6 percent, or $63, to $1,197, reflecting the impact of the used vehicle initiatives we launched last year.

    Same Store operating margin increased 30 basis points, to 4.2 percent and adjusted Same Store operating margin increased 20 basis points, to 4.4 percent.

    "We are very pleased with our U.S. performance as the numerous initiatives we have implemented across our used vehicle and service departments continue to gain traction and deliver strong Same Store growth," said Daryl Kenningham, Group 1's president of U.S. operations. "We are particularly pleased with the increased level of hiring and retention of service technicians and advisors, with Same Store headcount for both positions increasing by double-digit percentage points compared to the prior year period.  This has driven the highest level of quarterly growth in U.S. Same Store parts and service revenue that we have ever seen."

  • United Kingdom:

    The Company's U.K. operations accounted for 20.4 percent of total revenues and 14.1 percent of total gross profit. Total Same Store U.K. revenues decreased 7.5 percent (decreased 2.1 percent), to $603.7 million. Same Store new vehicle units sold decreased 11.5 percent.  Same Store total gross profit decreased 15.1 percent (decreased 10.3 percent), to $61.9 million.

    Same Store SG&A expenses as a percent of gross profit increased 10.2 percentage points, to 92.1 percent; and operating margin decreased 120 basis points, to 0.3 percent.

  • Brazil:

    The Company's Brazilian operations accounted for 3.8 percent of total revenues and 3.0 percent of total gross profit. The Company's Same Store new vehicle revenue grew 9.1 percent on a constant currency basis, with units up 7.0 percent. On a Same Store constant currency basis, total revenues grew 8.0 percent, driven by revenue growth of the aforementioned 9.1 percent in new vehicles, 3.9 percent in total used vehicles, and 14.0 percent in parts & service.

    SG&A expenses as a percent of gross profit improved 500 basis points, to 86.1 percent. Adjusted Same Store SG&A expenses as a percent of gross profit increased 400 basis points, to 90.5 percent.

Corporate Development

As previously announced in July 2019, the Company acquired two BMW and two MINI franchises in New Mexico, which are expected to generate approximately $100 million in annualized revenues.

Additionally, as recently announced in July 2019, the Company acquired five Volkswagen franchise dealerships in the County of Essex, northeast of London.  This transaction includes four Volkswagen and one Volkswagen Commercial Vehicle franchises and adds further scale to Group 1's numerous existing operations in Essex.  Specifically, the acquired operations are located in the cities of Chelmsford, Colchester, Romford and Southend. This acquisition is expected to generate approximately $115 million in annualized revenues.  The addition of these stores increases the Company's U.K. operations to 49 dealerships (65 franchises), which includes 11 existing brands (Audi, BMW, Ford, Jaguar, Kia, Land Rover, MINI, SEAT, Skoda, Toyota, and Volkswagen Commercial Vehicles).

In June 2019, the Company disposed of four franchises, which included BMW and MINI franchises in Watford (U.K.), a Volkswagen Commercial Vehicle franchise in Hatfield (U.K.), as well as a Mercedes-Benz franchise in Campo Grande (Brazil). These four franchises generated approximately $80 million in trailing-twelve-month revenues.

Year-to-date 2019, the Company has acquired a total of 11 franchises, which are expected to generate an estimated $255 million in annual revenues; and the Company has disposed of 11 franchises, which generated approximately $200 million in trailing-twelve-month revenues.

Second Quarter 2019 Earnings Conference Call Details

Group 1's senior management will host a conference call today at 9 a.m. ET to discuss the second 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:

4859924

A telephonic replay will be available following the call through August 1, 2019 by dialing:

Domestic:

1-877-344-7529

International:

1-412-317-0088

Replay ID:

10133445

ABOUT GROUP 1 AUTOMOTIVE, INC.
Group 1 owns and operates 184 automotive dealerships, 239 franchises, and 48 collision centers in the United States, the United Kingdom and Brazil that offer 31 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 AND SAME STORE DATA
In addition to evaluating the financial condition and results of our operations in accordance with U.S. GAAP, from time to time our management evaluates and analyzes results and any impact on the Company of strategic decisions and actions relating to, among other things, cost reduction, growth, profitability improvement initiatives, and other events outside of normal, or "core," business and operations, by considering alternative financial measures not prepared in accordance with U.S. GAAP. In our evaluation of results from time to time, we exclude items that do not arise directly from core operations, such as non-cash asset impairment charges, legal matters, gains and losses on dealership franchise or real estate transactions, and catastrophic events, such as hailstorms, hurricanes, and snow storms. Because these non-core charges and gains materially affect the Company's financial condition or results in the specific period in which they are recognized, management also evaluates, and makes resource allocation and performance evaluation decisions based on, the related non-GAAP measures excluding such items. This includes evaluating measures such as adjusted selling, general and administrative expenses, adjusted net income, adjusted diluted income per share, and constant currency. These adjusted measures are not measures of financial performance under U.S. GAAP, but are instead considered non-GAAP financial performance measures. Non-GAAP measures do not have definitions under U.S. GAAP and may be defined differently by, and not be comparable to similarly titled measures used by, other companies. As a result, any non-GAAP financial measures considered and evaluated by management are reviewed in conjunction with a review of the most directly comparable measures calculated in accordance with U.S. GAAP. We caution investors not to place undue reliance on such non-GAAP measures, but also to consider them with the most directly comparable U.S. GAAP measures.

In addition to using such non-GAAP measures to evaluate results in a specific period, management believes that such measures may provide more complete and consistent comparisons of operational performance on a period-over-period historical basis and a better indication of expected future trends. Our management also uses these adjusted measures in conjunction with U.S. GAAP financial measures to assess our business, including communication with our Board of Directors, investors, and industry analysts concerning financial performance. We disclose these non-GAAP measures, and the related reconciliations, because we believe investors use these metrics in evaluating longer-term period-over-period performance, and to allow investors to better understand and evaluate the information used by management to assess operating performance. The exclusion of certain expenses in the calculation of non-GAAP financial measures should not be construed as an inference that these costs are unusual or infrequent. We anticipate excluding these expenses in the future presentation of our non-GAAP financial measures.

In addition, we evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our underlying business and results of operations, consistent with how we evaluate our performance. We calculate constant currency percentages by converting our current period reported results for entities reporting in currencies other than U.S. dollars using comparative period exchange rates rather than the actual exchange rates in effect during the respective periods. The constant currency performance measures should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with U.S. GAAP.

The Same Store amounts presented include the results of dealerships for the identical months in each period presented in comparison, commencing with the first full month in which the dealership was owned by us and, in the case of dispositions, ending with the last full month it was owned by us. Same Store results also include the activities of our corporate headquarters.

Investor contacts:
Sheila Roth
Manager, Investor Relations
Group 1 Automotive, Inc.
713-647-5741 | sroth@group1auto.com

Media contacts:
Pete DeLongchamps
Senior Vice President, 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.

Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)










Three Months Ended June 30,



2019


2018


%
Increase/(Decrease)

REVENUES







New vehicle retail sales


$

1,565,375



$

1,555,570



0.6


Used vehicle retail sales


838,896



821,853



2.1


Used vehicle wholesale sales


95,996



92,854



3.4


Parts and service sales


378,167



358,129



5.6


Finance, insurance and other, net


127,255



115,056



10.6


Total revenues


3,005,689



2,943,462



2.1


COST OF SALES







New vehicle retail sales


1,495,671



1,478,988



1.1


Used vehicle retail sales


785,604



770,639



1.9


Used vehicle wholesale sales


96,089



92,613



3.8


Parts and service sales


174,072



163,059



6.8


Total cost of sales


2,551,436



2,505,299



1.8


GROSS PROFIT


454,253



438,163



3.7


Selling, general and administrative expenses


338,715



308,092



9.9


Depreciation and amortization expense


17,864



16,638



7.4


Asset impairments


537



4,268



(87.4)


INCOME (LOSS) FROM OPERATIONS


97,137



109,165



(11.0)


OTHER INCOME (EXPENSE)







Floorplan interest expense


(15,943)



(14,563)



9.5


Other interest expense, net


(17,961)



(19,414)



(7.5)


INCOME (LOSS) BEFORE INCOME TAXES


63,233



75,188



(15.9)


Benefit (provision) for income taxes


(14,008)



(18,725)



(25.2)


NET INCOME (LOSS)


$

49,225



$

56,463



(12.8)


Less: earnings allocated to participating securities


$

1,842



$

1,916



(3.9)


Earnings available to diluted common shares


$

47,383



$

54,547



(13.1)


DILUTED EARNINGS (LOSS) PER SHARE


$

2.64



$

2.72



(2.9)


Weighted average dilutive common shares outstanding


17,930



20,046



(10.6)


Weighted average participating securities


702



708



(0.8)


Total weighted average shares


18,632



20,754



(10.2)


 


Group 1 Automotive, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)










Six Months Ended June 30,



2019


2018


%
Increase/(Decrease)

REVENUES







New vehicle retail sales


$

2,979,860



$

3,069,160



(2.9)


Used vehicle retail sales


1,658,099



1,602,423



3.5


Used vehicle wholesale sales


188,134



196,883



(4.4)


Parts and service sales


747,341



707,644



5.6


Finance, insurance and other, net


240,631



227,378



5.8


Total revenues


5,814,065



5,803,488



0.2


COST OF SALES







New vehicle retail sales


2,838,765



2,917,151



(2.7)


Used vehicle retail sales


1,556,998



1,507,714



3.3


Used vehicle wholesale sales


187,776



194,987



(3.7)


Parts and service sales


344,770



325,710



5.9


Total cost of sales


4,928,309



4,945,562



(0.3)


GROSS PROFIT


885,756



857,926



3.2


Selling, general and administrative expenses


666,423



632,439



5.4


Depreciation and amortization expense


34,861



32,980



5.7


Asset impairments


537



4,268



(87.4)


INCOME (LOSS) FROM OPERATIONS


183,935



188,239



(2.3)


OTHER INCOME (EXPENSE)







Floorplan interest expense


(31,646)



(28,650)



10.5


Other interest expense, net


(36,880)



(38,234)



(3.5)


INCOME (LOSS) BEFORE INCOME TAXES


115,409



121,355



(4.9)


Benefit (provision) for income taxes


(27,536)



(29,078)



(5.3)


NET INCOME (LOSS)


$

87,873



$

92,277



(4.8)


Less: earnings allocated to participating securities


$

3,299



$

3,123



5.6


Earnings available to diluted common shares


$

84,574



$

89,154



(5.1)


DILUTED EARNINGS (LOSS) PER SHARE


$

4.73



$

4.42



7.0


Weighted average dilutive common shares outstanding


17,878



20,176



(11.4)


Weighted average participating securities


702



712



(1.4)


Total weighted average shares


18,580



20,888



(11.0)


 


Group 1 Automotive, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(Dollars in thousands)










June 30, 2019


December 31, 2018


%
Increase/(Decrease)

ASSETS

CURRENT ASSETS







Cash and cash equivalents


$

37,740



$

15,932



136.9


Contracts in transit and vehicle receivables, net


252,529



265,660



(4.9)


Accounts and notes receivable, net


188,489



193,981



(2.8)


Inventories, net


1,793,671



1,844,059



(2.7)


Prepaid expenses and other current assets


89,705



82,734



8.4


TOTAL CURRENT ASSETS


2,362,134



2,402,366



(1.7)


Property and equipment, net


1,422,986



1,347,835



5.6


Operating lease assets


202,719





100.0


Goodwill


963,502



963,925




Intangible franchise rights


259,540



259,630




Other assets


14,880



27,319



(45.5)


TOTAL ASSETS


$

5,225,761



$

5,001,075



4.5









LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES







Floorplan notes payable - credit facility and other


$

1,199,184



$

1,292,452



(7.2)


Offset account related to floorplan notes payable - credit facility


(69,307)



(33,637)



106.0


Floorplan notes payable - manufacturer affiliates


426,636



417,924



2.1


Offset account related to floorplan notes payable - manufacturer affiliates


(150)



(100)



50.0


Current maturities of long-term debt


71,548



92,967



(23.0)


Current operating lease liabilities


23,504





100.0


Accounts payable


485,908



419,350



15.9


Accrued expenses and other current liabilities


198,017



197,609



0.2


TOTAL CURRENT LIABILITIES


2,335,340



2,386,565



(2.1)


5.00% Senior Notes (principal of $550,000)


544,591



543,730



0.2


5.25% Senior Notes (principal of $300,000)


297,035



296,735



0.1


Acquisition line


38,113



31,842



19.7


Real estate related and other long-term debt, net of current maturities


367,843



366,723



0.3


Finance leases, net of current maturities


48,138



42,459



13.4


Operating lease liabilities, net of current portion


193,421





100.0


Deferred income taxes


134,649



134,683




Other liabilities


102,566



102,644



(0.1)


STOCKHOLDERS' EQUITY







Common stock


255



255




Additional paid-in capital


288,197



292,774



(1.6)


Retained earnings


1,466,963



1,394,817



5.2


Accumulated other comprehensive income (loss)


(152,530)



(137,772)



10.7


Treasury stock


(438,820)



(454,380)



(3.4)


TOTAL STOCKHOLDERS' EQUITY


1,164,065



1,095,694



6.2


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY


$

5,225,761



$

5,001,075



4.5


 

Group 1 Automotive, Inc.

Additional Information - Consolidated

(Unaudited)














Three Months Ended June 30,


Six Months Ended June 30,




2019 (%)


2018 (%)


2019 (%)


2018 (%)

NEW VEHICLE UNIT SALES GEOGRAPHIC MIX








Region

Geographic Market









United States

Texas


36.0



35.2



35.0



35.4



Oklahoma


6.8



5.9



6.5



5.9



California


5.8



6.4



5.6



6.5



Massachusetts


4.7



4.7



4.5



4.7



Georgia


4.6



4.4



4.4



4.3



Florida


2.5



2.5



2.6



2.5



Louisiana


2.7



1.9



2.5



1.8



New Jersey


1.7



1.7



1.8



1.6



New Hampshire


1.8



1.8



1.7



1.8



South Carolina


1.7



1.6



1.7



1.6



Mississippi


1.2



1.2



1.2



1.2



Kansas


1.1



1.3



1.1



1.3



Alabama


0.7



0.6



0.7



0.6



Maryland


0.5



0.5



0.5



0.5



New Mexico


0.2



0.2



0.2



0.1





72.0



69.9



70.0



69.8












International

United Kingdom


22.0



25.1



24.2



25.2



Brazil


6.0



5.0



5.8



5.0





100.0



100.0



100.0



100.0











NEW VEHICLE UNIT SALES BRAND MIX








Toyota/Lexus


24.9



23.9



24.0



24.0


Volkswagen/Audi/Porsche/SEAT/SKODA


13.4



15.2



14.2



14.7


BMW/MINI


11.9



12.2



12.2



12.4


Honda/Acura


10.6



8.9



10.7



9.2


Ford/Lincoln


10.6



11.0



10.6



11.2


Chevrolet/GMC/Buick/Cadillac


6.7



5.7



6.5



5.8


Nissan


6.3



6.0



6.1



6.4


Mercedes-Benz/smart/Sprinter


5.1



5.4



5.3



5.0


Hyundai/Kia


3.9



3.8



3.7



3.9


Chrysler/Dodge/Jeep/RAM


3.3



4.1



3.2



4.1


Jaguar/Land Rover


1.7



1.9



2.1



1.9


Other


1.6



1.9



1.4



1.4




100.0



100.0



100.0



100.0


 


Group 1 Automotive, Inc.

Additional Information - U.S.

(Unaudited)

(Dollars in thousands, except per unit amounts)










Three Months Ended June 30,



2019


2018


%
Increase/(Decrease)

REVENUES







New vehicle retail sales


$

1,188,792



$

1,146,882



3.7


Used vehicle retail sales


625,452



592,007



5.6


Used vehicle wholesale sales


44,285



42,781



3.5


Total used


669,737



634,788



5.5


Parts and service sales


309,645



288,889



7.2


Finance, insurance and other, net


110,506



97,442



13.4


Total revenues


$

2,278,680



$

2,168,001



5.1


GROSS MARGIN %







New vehicle retail sales


4.6



4.9




Used vehicle retail sales


6.9



6.6




Used vehicle wholesale sales


2.1



3.6




Total used


6.6



6.4




Parts and service sales


54.0



54.2




Finance, insurance and other, net


100.0



100.0




Total gross margin


16.5



16.2




GROSS PROFIT







New vehicle retail sales


$

54,752



$

56,358



(2.8)


Used vehicle retail sales


43,330



38,809



11.6


Used vehicle wholesale sales


921



1,553



(40.7)


Total used


44,251



40,362



9.6


Parts and service sales


167,201



156,508



6.8


Finance, insurance and other, net


110,506



97,442



13.4


Total gross profit


$

376,710



$

350,670



7.4


UNITS SOLD







Retail new vehicles sold


30,318



30,388



(0.2)


Retail used vehicles sold


30,477



28,484



7.0


Wholesale used vehicles sold


6,828



7,292



(6.4)


Total used


37,305



35,776



4.3


AVERAGE RETAIL SALES PRICE







New vehicle retail


$

39,211



$

37,741



3.9


Used vehicle retail


$

20,522



$

20,784



(1.3)


GROSS PROFIT PER UNIT SOLD







New vehicle retail sales


$

1,806



$

1,855



(2.6)


Used vehicle retail sales


$

1,422



$

1,362



4.4


Used vehicle wholesale sales


$

135



$

213



(36.6)


Total used


$

1,186



$

1,128



5.1


Finance, insurance and other, net (per retail unit)


$

1,818



$

1,655



9.8


OTHER







SG&A expenses


$

268,077



$

234,279



14.4


Adjusted SG&A expenses (1)


$

264,085



$

246,586



7.1


SG&A as % revenues


11.8



10.8




Adjusted SG&A as % revenues (1)


11.6



11.4




SG&A as % gross profit


71.2



66.8




Adjusted SG&A as % gross profit (1)


70.1



70.3




Operating margin %


4.1



4.6




Adjusted operating margin % (1)


4.3



4.2




Pretax margin %


2.8



3.2




Adjusted pretax margin % (1)


3.0



2.8




INTEREST EXPENSE







Floorplan interest expense


$

(14,001)



$

(12,809)



9.3


Floorplan assistance


11,712



11,206



4.5


Net floorplan expense


$

(2,289)



$

(1,603)



42.8


Other interest expense, net


$

(16,611)



$

(17,332)



(4.2)



(1) See the section of this release titled "Non-GAAP Financial Measures and Same Store Data."


 

Group 1 Automotive, Inc.

Additional Information - U.S.

(Unaudited)

(Dollars in thousands, except per unit amounts)










Six Months Ended June 30,



2019


2018


%
Increase/(Decrease)

REVENUES







New vehicle retail sales


$

2,220,534



$

2,236,835



(0.7)


Used vehicle retail sales


1,219,870



1,155,837



5.5


Used vehicle wholesale sales


87,112



96,783



(10.0)


Total used


1,306,982



1,252,620



4.3


Parts and service sales


607,247



573,403



5.9


Finance, insurance and other, net


206,699



193,629



6.8


Total revenues


$

4,341,462



$

4,256,487



2.0


GROSS MARGIN %







New vehicle retail sales


4.8



4.9




Used vehicle retail sales


6.7



6.3




Used vehicle wholesale sales


2.4



3.1




Total used


6.4



6.0




Parts and service sales


54.0



53.7




Finance, insurance and other, net


100.0



100.0




Total gross margin


16.7



16.1




GROSS PROFIT







New vehicle retail sales


$

105,556



$

109,493



(3.6)


Used vehicle retail sales


81,614



72,294



12.9


Used vehicle wholesale sales


2,085



2,987



(30.2)


Total used


83,699



75,281



11.2


Parts and service sales


327,673



307,952



6.4


Finance, insurance and other, net


206,699



193,629



6.8


Total gross profit


$

723,627



$

686,355



5.4


UNITS SOLD







Retail new vehicles sold


56,708



59,061



(4.0)


Retail used vehicles sold


59,794



55,794



7.2


Wholesale used vehicles sold


13,978



16,675



(16.2)


Total used


73,772



72,469



1.8


AVERAGE RETAIL SALES PRICE







New vehicle retail


$

39,157



$

37,873



3.4


Used vehicle retail


$

20,401



$

20,716



(1.5)


GROSS PROFIT PER UNIT SOLD







New vehicle retail sales


$

1,861



$

1,854



0.4


Used vehicle retail sales


$

1,365



$

1,296



5.3


Used vehicle wholesale sales


$

149



$

179



(16.8)


Total used


$

1,135



$

1,039



9.2


Finance, insurance and other, net (per retail unit)


$

1,774



$

1,686



5.2


OTHER







SG&A expenses


$

524,230



$

487,220



7.6


Adjusted SG&A expenses (1)


$

521,652



$

499,527



4.4


SG&A as % revenues


12.1



11.4




Adjusted SG&A as % revenues (1)


12.0



11.7




SG&A as % gross profit


72.4



71.0




Adjusted SG&A as % gross profit (1)


72.1



72.8




Operating margin %


4.0



4.0




Adjusted operating margin % (1)


4.0



3.8




Pretax margin %


2.5



2.6




Adjusted pretax margin % (1)


2.6



2.4




INTEREST EXPENSE







Floorplan interest expense


$

(27,989)



$

(25,146)



11.3


Floorplan assistance


22,038



21,956



0.4


Net floorplan expense


$

(5,951)



$

(3,190)



86.6


Other interest expense, net


$

(33,786)



$

(34,348)



(1.6)



(1) See the section of this release titled "Non-GAAP Financial Measures and Same Store Data."  

 

null

Group 1 Automotive, Inc.

Additional Information - U.K.

(Unaudited)

(Dollars in thousands, except per unit amounts)




Three Months Ended June 30,


2019


2018


%
Increase/(Decrease)


Constant Currency (1)
% Increase/(Decrease)

REVENUES








New vehicle retail sales

$

302,224



$

338,635



(10.8)



(5.5)


Used vehicle retail sales

194,007



208,108



(6.8)



(1.4)


Used vehicle wholesale sales

46,882



46,527



0.8



6.6


Total used

240,889



254,635



(5.4)



0.1


Parts and service sales

56,360



57,996



(2.8)



2.8


Finance, insurance and other, net

14,961



15,617



(4.2)



1.3


Total revenues

$

614,434



$

666,883



(7.9)



(2.5)


GROSS MARGIN %








New vehicle retail sales

3.5



4.7






Used vehicle retail sales

4.3



5.3






Used vehicle wholesale sales

(2.7)



(3.0)






Total used

2.9



3.8






Parts and service sales

55.9



57.9






Finance, insurance and other, net

100.0



100.0






Total gross margin

10.4



11.2






GROSS PROFIT








New vehicle retail sales

$

10,625



$

15,907



(33.2)



(29.6)


Used vehicle retail sales

8,289



11,103



(25.3)



(20.7)


Used vehicle wholesale sales

(1,287)



(1,378)



6.6



1.6


Total used

7,002



9,725



(28.0)



(23.4)


Parts and service sales

31,483



33,555



(6.2)



(0.9)


Finance, insurance and other, net

14,961



15,617



(4.2)



1.3


Total gross profit

$

64,071



$

74,804



(14.3)



(9.5)


UNITS SOLD








Retail new vehicles sold

9,266



10,914



(15.1)




Retail used vehicles sold

8,280



8,501



(2.6)




Wholesale used vehicles sold

5,772



5,955



(3.1)




Total used

14,052



14,456



(2.8)




AVERAGE RETAIL SALES PRICE








New vehicle retail

$

32,616



$