Exhibit 99.1
FOR IMMEDIATE RELEASE
Group 1 Automotive Announces Record First Quarter 2022 Financial Results
•Record Quarterly Diluted Earnings Per Common Share from Continuing Operations; $11.78 per share
•Record Net Income from Continuing Operations; $201.1 million or 99.3% Increase
HOUSTON, TX, April 27, 2022 — Group 1 Automotive, Inc. (NYSE: GPI) (“Group 1” or the “Company”), an international, Fortune 300 automotive retailer with 202 dealerships located in the U.S. and U.K., today reported record first quarter 2022 financial results.
Current Quarter Results Overview — Continuing and Discontinued Operations
First quarter 2022 (“current quarter”) net income was $202.9 million. Current quarter adjusted net income (a non-GAAP measure) was $186.4 million.
Current quarter diluted earnings per common share was $11.88. Current quarter adjusted diluted earnings per common share (a non-GAAP measure) was $10.92.
“Our record profit performance this quarter was the result of continued strong consumer demand and outstanding operational performance across all business segments in the U.S. and U.K. Our 2021 acquisitions, especially the Prime Auto Group, performed far above our expectations in the first quarter and our U.K. operations achieved an all-time profit record. Service growth and cost leverage were noteworthy in both the U.S. and U.K. with U.S. service growth of 18.6% over last year on a same store basis and consolidated adjusted SG&A down 381 bps over last year. We expect our strong vehicle sales margins to continue this year in both markets as new vehicle supply is expected to remain constrained for the remainder of this year,” said Earl J. Hesterberg, Group 1’s President and Chief Executive Officer.
Reconciliations for financial results, non-GAAP metrics, and diluted earnings per common share between continuing and discontinued operations are included in the accompanying financial tables.
Current Quarter Results Overview — Continuing Operations
Current quarter total revenues were an all-time record of $3.8 billion, a 30.1% increase compared to total revenues of $3.0 billion for the first quarter of 2021 (“prior year quarter”).
Current quarter net income from continuing operations was an all-time record of $201.1 million, a 99.3% increase compared to net income from continuing operations of $100.9 million for the prior year quarter. Current quarter adjusted net income from continuing operations (a non-GAAP measure) was $184.6 million, an 81.6% increase compared to adjusted net income from continuing operations of $101.7 million for the prior year quarter.
Current quarter diluted earnings per common share from continuing operations was an all-time record of $11.78, a 115.3% increase over diluted earnings per common share from continuing operations of $5.47 for the prior year quarter. Current quarter adjusted diluted earnings per common share from continuing operations (a non-GAAP measure) was also an all-time record of $10.81, a 96.2% increase over adjusted diluted earnings per common share from continuing operations of $5.51 for the prior year quarter. Current quarter and prior year quarter adjusted diluted earnings per common share from continuing operations excludes adjusted diluted earnings per common share from discontinued operations of $0.11 and $0.06, respectively.
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First Quarter 2022 Key Performance Metrics (year-over-year comparable period basis) | Consolidated | Same Store (a non-GAAP measure) | ||||||||||||
| Reported: | 1Q22 | Change | 1Q22 | Change | ||||||||||
| Total revenues | $3.8B | +30.1% | $3.2B | +11.0% | ||||||||||
| Total gross profit (“GP”) | $724.7M | +50.6% | $606.9M | +27.8% | ||||||||||
| New Vehicle (“NV”) Gross Margin (“GM”) | 11.5% | +5.2% | 11.4% | +5.0% | ||||||||||
| NV units sold | 36,733 | +2.9% | 30,260 | (14.2)% | ||||||||||
| NV GP per retail unit (“PRU”) | $5,479 | +104.4% | $5,407 | +101.5% | ||||||||||
| Used vehicle (“UV”) GM | 6.5% | (0.1)% | 6.4% | (0.2)% | ||||||||||
| UV retail units sold | 43,806 | +16.7% | 37,415 | +0.9% | ||||||||||
| UV retail GP PRU | $2,005 | +28.7% | $1,975 | +26.4% | ||||||||||
| Parts & service (“P&S”) GP | $259.8M | +31.4% | $218.9M | +12.4% | ||||||||||
| P&S GM | 54.9% | (1.1)% | 54.0% | (2.0)% | ||||||||||
| Finance and Insurance (“F&I”) revenues | $173.0M | +37.7% | $148.7M | +20.0% | ||||||||||
| F&I GP PRU | $2,148 | +25.2% | $2,197 | +28.3% | ||||||||||
| Selling, General and Administrative (“SG&A”) expenses as a % of GP | 57.7% | (695) bps | 60.5% | (406) bps | ||||||||||
| Adjusted SG&A expenses (a non-GAAP measure) as a % of GP | 60.7% | (381) bps | 60.5% | (380) bps | ||||||||||
Corporate Development
In March 2022, the Company acquired Toyota of North Austin, which is ranked in the top 20 nationally in Toyota new vehicle volume. The dealership is expected to generate $435.0 million in annualized revenues. In April 2022, the Company acquired a Toyota dealership in New Mexico, which is expected to generate $115.0 million in annualized revenues, bringing year-to-date total acquired expected revenues for the Company to $550.0 million.
“The acquisition of these two large Toyota dealerships in growing markets where we already operate is a major growth opportunity for our U.S. operations. We can integrate and leverage these new businesses immediately,” said Daryl A. Kenningham, Group 1’s President of U.S. Operations.
In February 2022, the Company disposed of one Honda and one Toyota dealership in the New England area. These stores generated approximately $125.0 million in annualized revenues.
The Company also announced the pending sale of its Brazilian operations in November 2021. This sale is expected to close in the second quarter of 2022.
Share Repurchase
During the current quarter, the Company repurchased 638,696 shares, representing approximately 4.0% of the Company’s current quarter beginning outstanding common shares, at an average price per common share of $180.30, for a total of $115.2 million. The Company has $103.3 million remaining on its Board authorized common share repurchase program. As of March 31, 2022, the Company had an aggregate 16.7 million outstanding common shares and unvested restricted stock awards. 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, and subject to Board approval and covenant restrictions.
First Quarter 2022 Earnings Conference Call Details
Group 1’s senior management will host a conference call today at 10 a.m. ET to discuss the first quarter 2022 financial results. The conference call will be simulcast live on the Internet at group1auto.com, then click on ‘Investor Relations’ and then ‘Events’ or through this link: group1corp.com/events. A webcast replay will be available for 30 days.
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The conference call will also be available live by dialing in 10 minutes prior to the start of the call at:
Domestic: 1-888-317-6003
International: 1-412-317-6061
Conference ID: 9657751
A telephonic replay will be available following the call through May 4, 2022, by dialing:
Domestic: 1-877-344-7529
International: 1-412-317-0088
Replay ID: 2983745
ABOUT GROUP 1 AUTOMOTIVE, INC.
Group 1 owns and operates 202 automotive dealerships, 268 franchises, and 46 collision centers in the United States and the United Kingdom 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.
Group 1 discloses additional information about the Company, its business, and its results of operations at www.group1corp.com, www.group1auto.com, www.group1collision.com, www.acceleride.com, www.facebook.com/group1auto, and www.twitter.com/group1auto.
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 strategic investments, goals, plans, projections and guidance regarding our financial position, results of operations 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, (i) the impacts of COVID-19 on our business, (j) the impacts of any potential global recession, (k) our ability to maintain sufficient liquidity to operate, (l) the risk that proposed transactions will not be consummated in a timely manner, (m) our ability to successfully integrate recent and future acquisitions, and (n) the impacts on our business resulting from Russia’s military action in Ukraine and the imposition of sanctions on Russia. 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 Securities and Exchange Commission, 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.
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NON-GAAP FINANCIAL MEASURES, SAME STORE DATA, AND OTHER 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, out-of-period adjustments, 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 earnings 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.
Certain amounts in the financial statements may not compute due to rounding. All computations have been calculated using unrounded amounts for all periods presented.
SOURCE: Group 1 Automotive, Inc.
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Investor contacts:
Jason Babbitt
Vice President, Treasurer
Group 1 Automotive, Inc.
713-647-5759 | jbabbitt@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
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| Group 1 Automotive, Inc. | ||||||||||||||||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| (In millions, except per share data) | ||||||||||||||||||||||||||
| Three Months Ended March 31, | ||||||||||||||||||||||||||
| 2022 | 2021 | Increase/(Decrease) | % Change | |||||||||||||||||||||||
| REVENUES: | ||||||||||||||||||||||||||
| New vehicle retail sales | $ | 1,745.1 | $ | 1,509.2 | $ | 235.9 | 15.6 | % | ||||||||||||||||||
| Used vehicle retail sales | 1,359.9 | 888.1 | 471.8 | 53.1 | % | |||||||||||||||||||||
| Used vehicle wholesale sales | 93.5 | 78.2 | 15.2 | 19.5 | % | |||||||||||||||||||||
| Parts and service sales | 472.9 | 352.8 | 120.1 | 34.0 | % | |||||||||||||||||||||
| Finance, insurance and other, net | 173.0 | 125.6 | 47.4 | 37.7 | % | |||||||||||||||||||||
| Total revenues | 3,844.4 | 2,953.9 | 890.4 | 30.1 | % | |||||||||||||||||||||
| COST OF SALES: | ||||||||||||||||||||||||||
| New vehicle retail sales | 1,543.9 | 1,413.6 | 130.3 | 9.2 | % | |||||||||||||||||||||
| Used vehicle retail sales | 1,272.0 | 829.6 | 442.4 | 53.3 | % | |||||||||||||||||||||
| Used vehicle wholesale sales | 90.6 | 74.5 | 16.2 | 21.7 | % | |||||||||||||||||||||
| Parts and service sales | 213.1 | 155.0 | 58.0 | 37.4 | % | |||||||||||||||||||||
| Total cost of sales | 3,119.7 | 2,472.7 | 647.0 | 26.2 | % | |||||||||||||||||||||
| GROSS PROFIT | 724.7 | 481.3 | 243.4 | 50.6 | % | |||||||||||||||||||||
| Selling, general and administrative expenses | 418.5 | 311.4 | 107.1 | 34.4 | % | |||||||||||||||||||||
| Depreciation and amortization expense | 21.2 | 19.2 | 2.0 | 10.3 | % | |||||||||||||||||||||
| INCOME FROM OPERATIONS | 285.0 | 150.7 | 134.3 | 89.1 | % | |||||||||||||||||||||
| Floorplan interest expense | 5.3 | 7.5 | (2.2) | (29.9) | % | |||||||||||||||||||||
| Other interest expense, net | 17.4 | 13.2 | 4.3 | 32.5 | % | |||||||||||||||||||||
| INCOME BEFORE INCOME TAXES | 262.3 | 130.0 | 132.3 | 101.8 | % | |||||||||||||||||||||
| Provision for income taxes | 61.2 | 29.1 | 32.1 | 110.4 | % | |||||||||||||||||||||
| Net income from continuing operations | 201.1 | 100.9 | 100.2 | 99.3 | % | |||||||||||||||||||||
| Net income from discontinued operations | 1.8 | 1.0 | 0.8 | 77.9 | % | |||||||||||||||||||||
| NET INCOME | $ | 202.9 | $ | 101.9 | $ | 101.0 | 99.1 | % | ||||||||||||||||||
| Less: Earnings allocated to participating securities | 5.9 | 3.5 | 2.4 | 69.6 | % | |||||||||||||||||||||
| Net income available to diluted common shares | $ | 197.1 | $ | 98.5 | $ | 98.6 | 100.1 | % | ||||||||||||||||||
| Diluted earnings per share from continuing operations | $ | 11.78 | $ | 5.47 | $ | 6.31 | 115.3 | % | ||||||||||||||||||
| Diluted earnings per share from discontinued operations | $ | 0.11 | $ | 0.06 | $ | 0.05 | 92.2 | % | ||||||||||||||||||
| DILUTED EARNINGS PER SHARE | $ | 11.88 | $ | 5.52 | $ | 6.36 | 115.0 | % | ||||||||||||||||||
| Weighted average dilutive common shares outstanding | 16.6 | 17.8 | (1.2) | (6.9) | % | |||||||||||||||||||||
| Weighted average participating securities | 0.5 | 0.6 | (0.1) | (21.4) | % | |||||||||||||||||||||
| Total weighted average shares | 17.1 | 18.5 | (1.4) | (7.4) | % | |||||||||||||||||||||
| Effective tax rate on continuing operations | 23.3 | % | 22.4 | % | 1.0 | % | ||||||||||||||||||||
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| Group 1 Automotive, Inc. | ||||||||||||||||||||||||||
| Additional Information — Consolidated | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| March 31, 2022 | December 31, 2021 | Increase/(Decrease) | % Change | |||||||||||||||||||||||
| SELECTED BALANCE SHEET INFORMATION: | ||||||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 16.6 | $ | 14.9 | $ | 1.7 | 11.1 | % | ||||||||||||||||||
| Inventories, net | $ | 1,096.4 | $ | 1,073.1 | $ | 23.3 | 2.2 | % | ||||||||||||||||||
Floorplan notes payable, net (1) | $ | 704.7 | $ | 531.0 | $ | 173.7 | 32.7 | % | ||||||||||||||||||
| Total debt | $ | 1,988.7 | $ | 2,035.7 | $ | (47.0) | (2.3) | % | ||||||||||||||||||
| Total equity | $ | 1,949.2 | $ | 1,825.2 | $ | 124.0 | 6.8 | % | ||||||||||||||||||
(1) Amounts are net of offset accounts of $199.6 and $271.9, respectively. | ||||||||||||||||||||||||||
| Three Months Ended March 31, | ||||||||||||||
| 2022 | 2021 | |||||||||||||
| NEW VEHICLE UNIT SALES GEOGRAPHIC MIX: | ||||||||||||||
| United States | 80.3 | % | 81.7 | % | ||||||||||
| United Kingdom | 19.7 | % | 18.3 | % | ||||||||||
| NEW VEHICLE UNIT SALES BRAND MIX: | ||||||||||||||
| Toyota/Lexus | 23.0 | % | 25.8 | % | ||||||||||
| Volkswagen/Audi/Porsche/SEAT/SKODA | 15.3 | % | 14.7 | % | ||||||||||
| BMW/MINI | 13.1 | % | 10.1 | % | ||||||||||
| Ford/Lincoln | 8.2 | % | 10.0 | % | ||||||||||
| Honda/Acura | 8.0 | % | 8.6 | % | ||||||||||
| Chevrolet/GMC/Buick/Cadillac | 6.2 | % | 7.4 | % | ||||||||||
| Mercedes-Benz/smart/Sprinter | 5.9 | % | 5.2 | % | ||||||||||
| Chrysler/Dodge/Jeep/RAM | 5.2 | % | 4.3 | % | ||||||||||
| Nissan | 4.6 | % | 5.3 | % | ||||||||||
| Hyundai/Kia/Genesis | 4.3 | % | 4.9 | % | ||||||||||
| Subaru | 3.0 | % | 1.6 | % | ||||||||||
| Jaguar/Land Rover | 1.4 | % | 2.1 | % | ||||||||||
| Mazda | 1.4 | % | — | % | ||||||||||
| Other | 0.3 | % | — | % | ||||||||||
| 100.0 | % | 100.0 | % | |||||||||||
| March 31, 2022 | December 31, 2021 | March 31, 2021 | ||||||||||||||||||
DAYS’ SUPPLY IN INVENTORY (1): | ||||||||||||||||||||
| Consolidated | ||||||||||||||||||||
| New vehicle inventory | 11 | 12 | 33 | |||||||||||||||||
| Used vehicle inventory | 33 | 42 | 28 | |||||||||||||||||
| U.S. | ||||||||||||||||||||
| New vehicle inventory | 9 | 9 | 34 | |||||||||||||||||
| Used vehicle inventory | 28 | 36 | 23 | |||||||||||||||||
| U.K. | ||||||||||||||||||||
| New vehicle inventory | 17 | 33 | 28 | |||||||||||||||||
| Used vehicle inventory | 52 | 66 | 44 | |||||||||||||||||
(1) Days’ supply in inventory is calculated based on inventory unit levels and 30-day total unit sales volumes, both at the end of each reporting period. | ||||||||||||||||||||
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| Group 1 Automotive, Inc. | ||||||||||||||||||||||||||||||||||||||
| Reported Operating Data — Consolidated | ||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||
| (In millions, except unit data) | ||||||||||||||||||||||||||||||||||||||
| Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | Increase/ (Decrease) | % Change | Currency Impact on Current Period Results | Constant Currency % Change | |||||||||||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 1,745.1 | $ | 1,509.2 | $ | 235.9 | 15.6 | % | $ | (11.1) | 16.4 | % | ||||||||||||||||||||||||||
| Used vehicle retail sales | 1,359.9 | 888.1 | 471.8 | 53.1 | % | (9.5) | 54.2 | % | ||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | 93.5 | 78.2 | 15.2 | 19.5 | % | (1.0) | 20.8 | % | ||||||||||||||||||||||||||||||
| Total used | 1,453.4 | 966.3 | 487.0 | 50.4 | % | (10.5) | 51.5 | % | ||||||||||||||||||||||||||||||
| Parts and service sales | 472.9 | 352.8 | 120.1 | 34.0 | % | (1.9) | 34.6 | % | ||||||||||||||||||||||||||||||
| F&I, net | 173.0 | 125.6 | 47.4 | 37.7 | % | (0.6) | 38.2 | % | ||||||||||||||||||||||||||||||
| Total revenues | $ | 3,844.4 | $ | 2,953.9 | $ | 890.4 | 30.1 | % | $ | (24.1) | 31.0 | % | ||||||||||||||||||||||||||
| Gross profit: | ||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 201.3 | $ | 95.7 | $ | 105.6 | 110.4 | % | $ | (1.1) | 111.5 | % | ||||||||||||||||||||||||||
| Used vehicle retail sales | 87.8 | 58.5 | 29.4 | 50.2 | % | (0.6) | 51.1 | % | ||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | 2.8 | 3.8 | (0.9) | (25.1) | % | — | (25.6) | % | ||||||||||||||||||||||||||||||
| Total used | 90.7 | 62.3 | 28.4 | 45.6 | % | (0.5) | 46.5 | % | ||||||||||||||||||||||||||||||
| Parts and service sales | 259.8 | 197.7 | 62.1 | 31.4 | % | (1.2) | 32.0 | % | ||||||||||||||||||||||||||||||
| F&I, net | 173.0 | 125.6 | 47.4 | 37.7 | % | (0.6) | 38.2 | % | ||||||||||||||||||||||||||||||
| Total gross profit | $ | 724.7 | $ | 481.3 | $ | 243.4 | 50.6 | % | $ | (3.4) | 51.3 | % | ||||||||||||||||||||||||||
| Gross margin: | ||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | 11.5 | % | 6.3 | % | 5.2 | % | ||||||||||||||||||||||||||||||||
| Used vehicle retail sales | 6.5 | % | 6.6 | % | (0.1) | % | ||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | 3.0 | % | 4.8 | % | (1.8) | % | ||||||||||||||||||||||||||||||||
| Total used | 6.2 | % | 6.4 | % | (0.2) | % | ||||||||||||||||||||||||||||||||
| Parts and service sales | 54.9 | % | 56.1 | % | (1.1) | % | ||||||||||||||||||||||||||||||||
| Total gross margin | 18.9 | % | 16.3 | % | 2.6 | % | ||||||||||||||||||||||||||||||||
| Units sold: | ||||||||||||||||||||||||||||||||||||||
| Retail new vehicles sold | 36,733 | 35,692 | 1,041 | 2.9 | % | |||||||||||||||||||||||||||||||||
| Retail used vehicles sold | 43,806 | 37,543 | 6,263 | 16.7 | % | |||||||||||||||||||||||||||||||||
| Wholesale used vehicles sold | 9,099 | 9,578 | (479) | (5.0) | % | |||||||||||||||||||||||||||||||||
| Total used | 52,905 | 47,121 | 5,784 | 12.3 | % | |||||||||||||||||||||||||||||||||
| Average sales price per unit sold: | ||||||||||||||||||||||||||||||||||||||
| New vehicle retail | $ | 47,509 | $ | 42,285 | $ | 5,224 | 12.4 | % | $ | (301) | 13.1 | % | ||||||||||||||||||||||||||
| Used vehicle retail | $ | 31,043 | $ | 23,656 | $ | 7,387 | 31.2 | % | $ | (217) | 32.1 | % | ||||||||||||||||||||||||||
| Gross profit per unit sold: | ||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 5,479 | $ | 2,680 | $ | 2,799 | 104.4 | % | $ | (30) | 105.5 | % | ||||||||||||||||||||||||||
| Used vehicle retail sales | $ | 2,005 | $ | 1,558 | $ | 447 | 28.7 | % | $ | (13) | 29.5 | % | ||||||||||||||||||||||||||
| Used vehicle wholesale sales | $ | 310 | $ | 394 | $ | (83) | (21.2) | % | $ | 2 | (21.7) | % | ||||||||||||||||||||||||||
| Total used | $ | 1,714 | $ | 1,321 | $ | 392 | 29.7 | % | $ | (10) | 30.5 | % | ||||||||||||||||||||||||||
| F&I PRU | $ | 2,148 | $ | 1,715 | $ | 432 | 25.2 | % | $ | (8) | 25.7 | % | ||||||||||||||||||||||||||
| Other: | ||||||||||||||||||||||||||||||||||||||
| SG&A expenses | $ | 418.5 | $ | 311.4 | $ | 107.1 | 34.4 | % | $ | (1.8) | 35.0 | % | ||||||||||||||||||||||||||
Adjusted SG&A expenses (1) | $ | 439.8 | $ | 310.4 | $ | 129.4 | 41.7 | % | $ | (1.9) | 42.3 | % | ||||||||||||||||||||||||||
| SG&A as % gross profit | 57.7 | % | 64.7 | % | (6.9) | % | ||||||||||||||||||||||||||||||||
Adjusted SG&A as % gross profit (1) | 60.7 | % | 64.5 | % | (3.8) | % | ||||||||||||||||||||||||||||||||
| Operating margin % | 7.4 | % | 5.1 | % | 2.3 | % | ||||||||||||||||||||||||||||||||
Adjusted operating margin % (1) | 6.9 | % | 5.1 | % | 1.7 | % | ||||||||||||||||||||||||||||||||
| Pretax margin % | 6.8 | % | 4.4 | % | 2.4 | % | ||||||||||||||||||||||||||||||||
Adjusted pretax margin % (1) | 6.3 | % | 4.4 | % | 1.8 | % | ||||||||||||||||||||||||||||||||
| Floorplan expense: | ||||||||||||||||||||||||||||||||||||||
| Floorplan interest expense | $ | 5.3 | $ | 7.5 | $ | (2.2) | (29.9) | % | $ | — | (29.3) | % | ||||||||||||||||||||||||||
Less: Floorplan assistance (2) | 14.0 | 13.2 | 0.8 | 6.3 | % | — | 6.3 | % | ||||||||||||||||||||||||||||||
| Net floorplan expense | $ | (8.8) | $ | (5.7) | $ | (3.1) | $ | — | ||||||||||||||||||||||||||||||
(2) Floorplan assistance is included within New vehicle retail Gross profit above and New vehicle retail Cost of sales in our Condensed Consolidated Statements of Operations.
8
| Group 1 Automotive, Inc. | ||||||||||||||||||||||||||
| Reported Operating Data — U.S. | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| (In millions, except unit data) | ||||||||||||||||||||||||||
| Three Months Ended March 31, | ||||||||||||||||||||||||||
| 2022 | 2021 | Increase/(Decrease) | % Change | |||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||
| New vehicle retail sales | $ | 1,433.1 | $ | 1,246.0 | $ | 187.1 | 15.0 | % | ||||||||||||||||||
| Used vehicle retail sales | 1,037.9 | 696.5 | 341.4 | 49.0 | % | |||||||||||||||||||||
| Used vehicle wholesale sales | 57.2 | 50.4 | 6.8 | 13.5 | % | |||||||||||||||||||||
| Total used | 1,095.1 | 746.9 | 348.2 | 46.6 | % | |||||||||||||||||||||
| Parts and service sales | 408.4 | 296.3 | 112.1 | 37.8 | % | |||||||||||||||||||||
| F&I, net | 154.7 | 115.1 | 39.7 | 34.5 | % | |||||||||||||||||||||
| Total revenues | $ | 3,091.3 | $ | 2,404.3 | $ | 687.0 | 28.6 | % | ||||||||||||||||||
| Gross profit: | ||||||||||||||||||||||||||
| New vehicle retail sales | $ | 173.3 | $ | 80.9 | $ | 92.5 | 114.3 | % | ||||||||||||||||||
| Used vehicle retail sales | 68.7 | 50.3 | 18.3 | 36.5 | % | |||||||||||||||||||||
| Used vehicle wholesale sales | 3.2 | 3.9 | (0.7) | (17.5) | % | |||||||||||||||||||||
| Total used | 71.9 | 54.3 | 17.7 | 32.5 | % | |||||||||||||||||||||
| Parts and service sales | 221.0 | 165.1 | 55.9 | 33.8 | % | |||||||||||||||||||||
| F&I, net | 154.7 | 115.1 | 39.7 | 34.5 | % | |||||||||||||||||||||
| Total gross profit | $ | 620.9 | $ | 415.3 | $ | 205.6 | 49.5 | % | ||||||||||||||||||
| Gross margin: | ||||||||||||||||||||||||||
| New vehicle retail sales | 12.1 | % | 6.5 | % | 5.6 | % | ||||||||||||||||||||
| Used vehicle retail sales | 6.6 | % | 7.2 | % | (0.6) | % | ||||||||||||||||||||
| Used vehicle wholesale sales | 5.7 | % | 7.8 | % | (2.1) | % | ||||||||||||||||||||
| Total used | 6.6 | % | 7.3 | % | (0.7) | % | ||||||||||||||||||||
| Parts and service sales | 54.1 | % | 55.7 | % | (1.6) | % | ||||||||||||||||||||
| Total gross margin | 20.1 | % | 17.3 | % | 2.8 | % | ||||||||||||||||||||
| Units sold: | ||||||||||||||||||||||||||
| Retail new vehicles sold | 29,498 | 29,152 | 346 | 1.2 | % | |||||||||||||||||||||
| Retail used vehicles sold | 33,940 | 30,431 | 3,509 | 11.5 | % | |||||||||||||||||||||
| Wholesale used vehicles sold | 6,001 | 6,440 | (439) | (6.8) | % | |||||||||||||||||||||
| Total used | 39,941 | 36,871 | 3,070 | 8.3 | % | |||||||||||||||||||||
| Average sales price per unit sold: | ||||||||||||||||||||||||||
| New vehicle retail | $ | 48,583 | $ | 42,743 | $ | 5,840 | 13.7 | % | ||||||||||||||||||
| Used vehicle retail | $ | 30,580 | $ | 22,888 | $ | 7,692 | 33.6 | % | ||||||||||||||||||
| Gross profit per unit sold: | ||||||||||||||||||||||||||
| New vehicle retail sales | $ | 5,876 | $ | 2,774 | $ | 3,102 | 111.8 | % | ||||||||||||||||||
| Used vehicle retail sales | $ | 2,023 | $ | 1,654 | $ | 369 | 22.3 | % | ||||||||||||||||||
| Used vehicle wholesale sales | $ | 540 | $ | 610 | $ | (70) | (11.5) | % | ||||||||||||||||||
| Total used | $ | 1,800 | $ | 1,471 | $ | 329 | 22.4 | % | ||||||||||||||||||
| F&I PRU | $ | 2,439 | $ | 1,931 | $ | 508 | 26.3 | % | ||||||||||||||||||
| Other: | ||||||||||||||||||||||||||
| SG&A expenses | $ | 353.6 | $ | 261.7 | $ | 91.9 | 35.1 | % | ||||||||||||||||||
Adjusted SG&A expenses (1) | $ | 372.3 | $ | 261.4 | $ | 110.9 | 42.4 | % | ||||||||||||||||||
| SG&A as % gross profit | 56.9 | % | 63.0 | % | (6.1) | % | ||||||||||||||||||||
Adjusted SG&A as % gross profit (1) | 60.0 | % | 62.9 | % | (3.0) | % | ||||||||||||||||||||
(1) See the section in this release titled “Reconciliation of Certain Non-GAAP Financial Measures” for the GAAP to non-GAAP reconciliation of these figures.
9
| Group 1 Automotive, Inc. | ||||||||||||||||||||||||||||||||||||||
| Reported Operating Data — U.K. | ||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||
| (In millions, except unit data) | ||||||||||||||||||||||||||||||||||||||
| Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | Increase/ (Decrease) | % Change | Currency Impact on Current Period Results | Constant Currency % Change | |||||||||||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 312.0 | $ | 263.2 | $ | 48.9 | 18.6 | % | $ | (11.1) | 22.8 | % | ||||||||||||||||||||||||||
| Used vehicle retail sales | 322.0 | 191.6 | 130.4 | 68.1 | % | (9.5) | 73.0 | % | ||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | 36.3 | 27.8 | 8.4 | 30.3 | % | (1.0) | 33.9 | % | ||||||||||||||||||||||||||||||
| Total used | 358.3 | 219.4 | 138.8 | 63.3 | % | (10.5) | 68.0 | % | ||||||||||||||||||||||||||||||
| Parts and service sales | 64.5 | 56.5 | 8.0 | 14.2 | % | (1.9) | 17.5 | % | ||||||||||||||||||||||||||||||
| F&I, net | 18.3 | 10.6 | 7.7 | 72.9 | % | (0.6) | 78.7 | % | ||||||||||||||||||||||||||||||
| Total revenues | $ | 753.0 | $ | 549.6 | $ | 203.4 | 37.0 | % | $ | (24.1) | 41.4 | % | ||||||||||||||||||||||||||
| Gross profit: | ||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 27.9 | $ | 14.8 | $ | 13.2 | 89.0 | % | $ | (1.1) | 96.3 | % | ||||||||||||||||||||||||||
| Used vehicle retail sales | 19.2 | 8.2 | 11.0 | 134.7 | % | (0.6) | 141.4 | % | ||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | (0.4) | (0.2) | (0.3) | NM | — | NM | ||||||||||||||||||||||||||||||||
| Total used | 18.8 | 8.0 | 10.7 | 134.1 | % | (0.5) | 140.8 | % | ||||||||||||||||||||||||||||||
| Parts and service sales | 38.8 | 32.6 | 6.2 | 19.0 | % | (1.2) | 22.6 | % | ||||||||||||||||||||||||||||||
| F&I, net | 18.3 | 10.6 | 7.7 | 72.9 | % | (0.6) | 78.7 | % | ||||||||||||||||||||||||||||||
| Total gross profit | $ | 103.8 | $ | 66.0 | $ | 37.8 | 57.3 | % | $ | (3.4) | 62.5 | % | ||||||||||||||||||||||||||
| Gross margin: | ||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | 9.0 | % | 5.6 | % | 3.3 | % | ||||||||||||||||||||||||||||||||
| Used vehicle retail sales | 6.0 | % | 4.3 | % | 1.7 | % | ||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | (1.2) | % | (0.6) | % | (0.6) | % | ||||||||||||||||||||||||||||||||
| Total used | 5.2 | % | 3.7 | % | 1.6 | % | ||||||||||||||||||||||||||||||||
| Parts and service sales | 60.2 | % | 57.8 | % | 2.4 | % | ||||||||||||||||||||||||||||||||
| Total gross margin | 13.8 | % | 12.0 | % | 1.8 | % | ||||||||||||||||||||||||||||||||
| Units sold: | ||||||||||||||||||||||||||||||||||||||
| Retail new vehicles sold | 7,235 | 6,540 | 695 | 10.6 | % | |||||||||||||||||||||||||||||||||
| Retail used vehicles sold | 9,866 | 7,112 | 2,754 | 38.7 | % | |||||||||||||||||||||||||||||||||
| Wholesale used vehicles sold | 3,098 | 3,138 | (40) | (1.3) | % | |||||||||||||||||||||||||||||||||
| Total used | 12,964 | 10,250 | 2,714 | 26.5 | % | |||||||||||||||||||||||||||||||||
| Average sales price per unit sold: | ||||||||||||||||||||||||||||||||||||||
| New vehicle retail | $ | 43,129 | $ | 40,240 | $ | 2,889 | 7.2 | % | $ | (1,528) | 11.0 | % | ||||||||||||||||||||||||||
| Used vehicle retail | $ | 32,638 | $ | 26,941 | $ | 5,697 | 21.1 | % | $ | (962) | 24.7 | % | ||||||||||||||||||||||||||
| Gross profit per unit sold: | ||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 3,861 | $ | 2,261 | $ | 1,600 | 70.8 | % | $ | (150) | 77.4 | % | ||||||||||||||||||||||||||
| Used vehicle retail sales | $ | 1,944 | $ | 1,149 | $ | 795 | 69.2 | % | $ | (56) | 74.0 | % | ||||||||||||||||||||||||||
| Used vehicle wholesale sales | $ | (135) | $ | (51) | $ | (84) | NM | $ | 6 | NM | ||||||||||||||||||||||||||||
| Total used | $ | 1,447 | $ | 782 | $ | 666 | 85.1 | % | $ | (41) | 90.4 | % | ||||||||||||||||||||||||||
| F&I PRU | $ | 1,068 | $ | 773 | $ | 294 | 38.1 | % | $ | (36) | 42.7 | % | ||||||||||||||||||||||||||
| Other: | ||||||||||||||||||||||||||||||||||||||
| SG&A expenses | $ | 64.9 | $ | 49.6 | $ | 15.2 | 30.7 | % | $ | (1.8) | 34.3 | % | ||||||||||||||||||||||||||
Adjusted SG&A expenses (1) | $ | 67.5 | $ | 49.1 | $ | 18.5 | 37.7 | % | $ | (1.9) | 41.6 | % | ||||||||||||||||||||||||||
| SG&A as % gross profit | 62.5 | % | 75.2 | % | (12.7) | % | ||||||||||||||||||||||||||||||||
Adjusted SG&A as % gross profit (1) | 65.1 | % | 74.3 | % | (9.3) | % | ||||||||||||||||||||||||||||||||
(1) See the section in this release titled “Reconciliation of Certain Non-GAAP Financial Measures” for the GAAP to non-GAAP reconciliation of these figures.
NM — Not Meaningful
10
| Group 1 Automotive, Inc. | |||||||||||||||||||||||||||||||||||||||||
| Same Store Operating Data — Consolidated | |||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||||||||
| (In millions, except unit data) | |||||||||||||||||||||||||||||||||||||||||
| Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | Increase/ (Decrease) | % Change | Currency Impact on Current Period Results | Constant Currency % Change | ||||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 1,440.7 | $ | 1,490.4 | $ | (49.6) | (3.3) | % | $ | (10.1) | (2.7) | % | |||||||||||||||||||||||||||||
| Used vehicle retail sales | 1,163.1 | 878.3 | 284.8 | 32.4 | % | (8.4) | 33.4 | % | |||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | 79.6 | 77.5 | 2.1 | 2.8 | % | (0.9) | 4.0 | % | |||||||||||||||||||||||||||||||||
| Total used | 1,242.7 | 955.8 | 287.0 | 30.0 | % | (9.3) | 31.0 | % | |||||||||||||||||||||||||||||||||
| Parts and service sales | 405.0 | 347.1 | 57.9 | 16.7 | % | (1.7) | 17.2 | % | |||||||||||||||||||||||||||||||||
| F&I, net | 148.7 | 123.9 | 24.8 | 20.0 | % | (0.6) | 20.4 | % | |||||||||||||||||||||||||||||||||
| Total revenues | $ | 3,237.2 | $ | 2,917.1 | $ | 320.1 | 11.0 | % | $ | (21.7) | 11.7 | % | |||||||||||||||||||||||||||||
| Gross profit: | |||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 163.6 | $ | 94.6 | $ | 69.0 | 72.9 | % | $ | (1.0) | 74.0 | % | |||||||||||||||||||||||||||||
| Used vehicle retail sales | 73.9 | 58.0 | 15.9 | 27.5 | % | (0.5) | 28.3 | % | |||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | 1.8 | 3.8 | (2.0) | (51.8) | % | — | (52.3) | % | |||||||||||||||||||||||||||||||||
| Total used | 75.7 | 61.7 | 14.0 | 22.7 | % | (0.5) | 23.4 | % | |||||||||||||||||||||||||||||||||
| Parts and service sales | 218.9 | 194.7 | 24.2 | 12.4 | % | (1.1) | 13.0 | % | |||||||||||||||||||||||||||||||||
| F&I, net | 148.7 | 123.9 | 24.8 | 20.0 | % | (0.6) | 20.4 | % | |||||||||||||||||||||||||||||||||
| Total gross profit | $ | 606.9 | $ | 474.9 | $ | 132.0 | 27.8 | % | $ | (3.1) | 28.4 | % | |||||||||||||||||||||||||||||
| Gross margin: | |||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | 11.4 | % | 6.3 | % | 5.0 | % | |||||||||||||||||||||||||||||||||||
| Used vehicle retail sales | 6.4 | % | 6.6 | % | (0.2) | % | |||||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | 2.3 | % | 4.9 | % | (2.6) | % | |||||||||||||||||||||||||||||||||||
| Total used | 6.1 | % | 6.5 | % | (0.4) | % | |||||||||||||||||||||||||||||||||||
| Parts and service sales | 54.0 | % | 56.1 | % | (2.0) | % | |||||||||||||||||||||||||||||||||||
| Total gross margin | 18.7 | % | 16.3 | % | 2.5 | % | |||||||||||||||||||||||||||||||||||
| Units sold: | |||||||||||||||||||||||||||||||||||||||||
| Retail new vehicles sold | 30,260 | 35,263 | (5,003) | (14.2) | % | ||||||||||||||||||||||||||||||||||||
| Retail used vehicles sold | 37,415 | 37,092 | 323 | 0.9 | % | ||||||||||||||||||||||||||||||||||||
| Wholesale used vehicles sold | 7,377 | 9,457 | (2,080) | (22.0) | % | ||||||||||||||||||||||||||||||||||||
| Total used | 44,792 | 46,549 | (1,757) | (3.8) | % | ||||||||||||||||||||||||||||||||||||
| Average sales price per unit sold: | |||||||||||||||||||||||||||||||||||||||||
| New vehicle retail | $ | 47,612 | $ | 42,264 | $ | 5,348 | 12.7 | % | $ | (334) | 13.4 | % | |||||||||||||||||||||||||||||
| Used vehicle retail | $ | 31,087 | $ | 23,679 | $ | 7,408 | 31.3 | % | $ | (224) | 32.2 | % | |||||||||||||||||||||||||||||
| Gross profit per unit sold: | |||||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 5,407 | $ | 2,683 | $ | 2,724 | 101.5 | % | $ | (33) | 102.8 | % | |||||||||||||||||||||||||||||
| Used vehicle retail sales | $ | 1,975 | $ | 1,563 | $ | 412 | 26.4 | % | $ | (13) | 27.2 | % | |||||||||||||||||||||||||||||
| Used vehicle wholesale sales | $ | 246 | $ | 398 | $ | (152) | (38.2) | % | $ | 2 | (38.8) | % | |||||||||||||||||||||||||||||
| Total used | $ | 1,691 | $ | 1,326 | $ | 364 | 27.5 | % | $ | (10) | 28.3 | % | |||||||||||||||||||||||||||||
| F&I PRU | $ | 2,197 | $ | 1,712 | $ | 484 | 28.3 | % | $ | (8) | 28.8 | % | |||||||||||||||||||||||||||||
| Other: | |||||||||||||||||||||||||||||||||||||||||
| SG&A expenses | $ | 367.0 | $ | 306.5 | $ | 60.5 | 19.7 | % | $ | (1.8) | 20.3 | % | |||||||||||||||||||||||||||||
Adjusted SG&A expenses (1) | $ | 367.0 | $ | 305.3 | $ | 61.8 | 20.2 | % | $ | (1.8) | 20.8 | % | |||||||||||||||||||||||||||||
| SG&A as % gross profit | 60.5 | % | 64.5 | % | (4.1) | % | |||||||||||||||||||||||||||||||||||
Adjusted SG&A as % gross profit (1) | 60.5 | % | 64.3 | % | (3.8) | % | |||||||||||||||||||||||||||||||||||
| Operating margin % | 6.8 | % | 5.1 | % | 1.7 | % | |||||||||||||||||||||||||||||||||||
Adjusted operating margin % (1) | 6.8 | % | 5.2 | % | 1.7 | % | |||||||||||||||||||||||||||||||||||
(1) See the section in this release titled “Reconciliation of Certain Non-GAAP Financial Measures” for the GAAP to non-GAAP reconciliation of these figures.
11
| Group 1 Automotive, Inc. | |||||||||||||||||||||||
| Same Store Operating Data — U.S. | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| (In millions, except unit data) | |||||||||||||||||||||||
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2022 | 2021 | Increase/(Decrease) | % Change | ||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| New vehicle retail sales | $ | 1,155.8 | $ | 1,227.6 | $ | (71.8) | (5.8) | % | |||||||||||||||
| Used vehicle retail sales | 878.0 | 687.7 | 190.4 | 27.7 | % | ||||||||||||||||||
| Used vehicle wholesale sales | 46.3 | 49.7 | (3.4) | (6.9) | % | ||||||||||||||||||
| Total used | 924.4 | 737.4 | 187.0 | 25.4 | % | ||||||||||||||||||
| Parts and service sales | 347.8 | 293.3 | 54.5 | 18.6 | % | ||||||||||||||||||
| F&I, net | 131.9 | 113.4 | 18.5 | 16.3 | % | ||||||||||||||||||
| Total revenues | $ | 2,559.8 | $ | 2,371.6 | $ | 188.2 | 7.9 | % | |||||||||||||||
| Gross profit: | |||||||||||||||||||||||
| New vehicle retail sales | $ | 138.3 | $ | 79.9 | $ | 58.5 | 73.2 | % | |||||||||||||||
| Used vehicle retail sales | 57.0 | 49.8 | 7.2 | 14.4 | % | ||||||||||||||||||
| Used vehicle wholesale sales | 2.2 | 3.9 | (1.7) | (42.9) | % | ||||||||||||||||||
| Total used | 59.3 | 53.7 | 5.5 | 10.3 | % | ||||||||||||||||||
| Parts and service sales | 184.4 | 163.2 | 21.2 | 13.0 | % | ||||||||||||||||||
| F&I, net | 131.9 | 113.4 | 18.5 | 16.3 | % | ||||||||||||||||||
| Total gross profit | $ | 513.9 | $ | 410.2 | $ | 103.7 | 25.3 | % | |||||||||||||||
| Gross margin: | |||||||||||||||||||||||
| New vehicle retail sales | 12.0 | % | 6.5 | % | 5.5 | % | |||||||||||||||||
| Used vehicle retail sales | 6.5 | % | 7.2 | % | (0.8) | % | |||||||||||||||||
| Used vehicle wholesale sales | 4.8 | % | 7.8 | % | (3.0) | % | |||||||||||||||||
| Total used | 6.4 | % | 7.3 | % | (0.9) | % | |||||||||||||||||
| Parts and service sales | 53.0 | % | 55.7 | % | (2.6) | % | |||||||||||||||||
| Total gross margin | 20.1 | % | 17.3 | % | 2.8 | % | |||||||||||||||||
| Units sold: | |||||||||||||||||||||||
| Retail new vehicles sold | 23,769 | 28,739 | (4,970) | (17.3) | % | ||||||||||||||||||
| Retail used vehicles sold | 28,901 | 30,037 | (1,136) | (3.8) | % | ||||||||||||||||||
| Wholesale used vehicles sold | 4,639 | 6,344 | (1,705) | (26.9) | % | ||||||||||||||||||
| Total used | 33,540 | 36,381 | (2,841) | (7.8) | % | ||||||||||||||||||
| Average sales price per unit sold: | |||||||||||||||||||||||
| New vehicle retail | $ | 48,625 | $ | 42,714 | $ | 5,912 | 13.8 | % | |||||||||||||||
| Used vehicle retail | $ | 30,381 | $ | 22,894 | $ | 7,488 | 32.7 | % | |||||||||||||||
| Gross profit per unit sold: | |||||||||||||||||||||||
| New vehicle retail sales | $ | 5,819 | $ | 2,779 | $ | 3,041 | 109.4 | % | |||||||||||||||
| Used vehicle retail sales | $ | 1,974 | $ | 1,660 | $ | 314 | 18.9 | % | |||||||||||||||
| Used vehicle wholesale sales | $ | 477 | $ | 611 | $ | (134) | (21.9) | % | |||||||||||||||
| Total used | $ | 1,767 | $ | 1,477 | $ | 290 | 19.7 | % | |||||||||||||||
| F&I PRU | $ | 2,504 | $ | 1,929 | $ | 575 | 29.8 | % | |||||||||||||||
| Other: | |||||||||||||||||||||||
| SG&A expenses | $ | 306.5 | $ | 258.7 | $ | 47.9 | 18.5 | % | |||||||||||||||
Adjusted SG&A expenses (1) | $ | 306.5 | $ | 257.4 | $ | 49.1 | 19.1 | % | |||||||||||||||
| SG&A as % gross profit | 59.6 | % | 63.1 | % | (3.4) | % | |||||||||||||||||
Adjusted SG&A as % gross profit (1) | 59.6 | % | 62.8 | % | (3.1) | % | |||||||||||||||||
(1) See the section in this release titled “Reconciliation of Certain Non-GAAP Financial Measures” for the GAAP to non-GAAP reconciliation of these figures.
12
| Group 1 Automotive, Inc. | ||||||||||||||||||||||||||||||||||||||
| Same Store Operating Data — U.K. | ||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||
| (In millions, except unit data) | ||||||||||||||||||||||||||||||||||||||
| Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | Increase/ (Decrease) | % Change | Currency Impact on Current Period Results | Constant Currency % Change | |||||||||||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 285.0 | $ | 262.8 | $ | 22.2 | 8.4 | % | $ | (10.1) | 12.3 | % | ||||||||||||||||||||||||||
| Used vehicle retail sales | 285.1 | 190.6 | 94.4 | 49.5 | % | (8.4) | 53.9 | % | ||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | 33.3 | 27.7 | 5.6 | 20.1 | % | (0.9) | 23.4 | % | ||||||||||||||||||||||||||||||
| Total used | 318.4 | 218.4 | 100.0 | 45.8 | % | (9.3) | 50.1 | % | ||||||||||||||||||||||||||||||
| Parts and service sales | 57.3 | 53.9 | 3.4 | 6.3 | % | (1.7) | 9.4 | % | ||||||||||||||||||||||||||||||
| F&I, net | 16.8 | 10.5 | 6.2 | 59.4 | % | (0.6) | 64.8 | % | ||||||||||||||||||||||||||||||
| Total revenues | $ | 677.3 | $ | 545.5 | $ | 131.8 | 24.2 | % | $ | (21.7) | 28.1 | % | ||||||||||||||||||||||||||
| Gross profit: | ||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 25.3 | $ | 14.8 | $ | 10.5 | 71.4 | % | $ | (1.0) | 78.1 | % | ||||||||||||||||||||||||||
| Used vehicle retail sales | 16.9 | 8.1 | 8.7 | 107.5 | % | (0.5) | 113.4 | % | ||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | (0.4) | (0.1) | (0.3) | NM | — | NM | ||||||||||||||||||||||||||||||||
| Total used | 16.5 | 8.0 | 8.4 | 105.4 | % | (0.5) | 111.2 | % | ||||||||||||||||||||||||||||||
| Parts and service sales | 34.4 | 31.4 | 3.0 | 9.5 | % | (1.1) | 12.9 | % | ||||||||||||||||||||||||||||||
| F&I, net | 16.8 | 10.5 | 6.2 | 59.4 | % | (0.6) | 64.8 | % | ||||||||||||||||||||||||||||||
| Total gross profit | $ | 93.0 | $ | 64.7 | $ | 28.2 | 43.6 | % | $ | (3.1) | 48.4 | % | ||||||||||||||||||||||||||
| Gross margin: | ||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | 8.9 | % | 5.6 | % | 3.3 | % | ||||||||||||||||||||||||||||||||
| Used vehicle retail sales | 5.9 | % | 4.3 | % | 1.7 | % | ||||||||||||||||||||||||||||||||
| Used vehicle wholesale sales | (1.2) | % | (0.4) | % | (0.8) | % | ||||||||||||||||||||||||||||||||
| Total used | 5.2 | % | 3.7 | % | 1.5 | % | ||||||||||||||||||||||||||||||||
| Parts and service sales | 60.1 | % | 58.4 | % | 1.8 | % | ||||||||||||||||||||||||||||||||
| Total gross margin | 13.7 | % | 11.9 | % | 1.9 | % | ||||||||||||||||||||||||||||||||
| Units sold: | ||||||||||||||||||||||||||||||||||||||
| Retail new vehicles sold | 6,491 | 6,524 | (33) | (0.5) | % | |||||||||||||||||||||||||||||||||
| Retail used vehicles sold | 8,514 | 7,055 | 1,459 | 20.7 | % | |||||||||||||||||||||||||||||||||
| Wholesale used vehicles sold | 2,738 | 3,113 | (375) | (12.0) | % | |||||||||||||||||||||||||||||||||
| Total used | 11,252 | 10,168 | 1,084 | 10.7 | % | |||||||||||||||||||||||||||||||||
| Average sales price per unit sold: | ||||||||||||||||||||||||||||||||||||||
| New vehicle retail | $ | 43,903 | $ | 40,282 | $ | 3,621 | 9.0 | % | $ | (1,557) | 12.9 | % | ||||||||||||||||||||||||||
| Used vehicle retail | $ | 33,483 | $ | 27,023 | $ | 6,460 | 23.9 | % | $ | (986) | 27.6 | % | ||||||||||||||||||||||||||
| Gross profit per unit sold: | ||||||||||||||||||||||||||||||||||||||
| New vehicle retail sales | $ | 3,898 | $ | 2,262 | $ | 1,635 | 72.3 | % | $ | (153) | 79.0 | % | ||||||||||||||||||||||||||
| Used vehicle retail sales | $ | 1,981 | $ | 1,152 | $ | 829 | 71.9 | % | $ | (57) | 76.8 | % | ||||||||||||||||||||||||||
| Used vehicle wholesale sales | $ | (146) | $ | (36) | $ | (110) | NM | $ | 6 | NM | ||||||||||||||||||||||||||||
| Total used | $ | 1,463 | $ | 788 | $ | 675 | 85.6 | % | $ | (41) | 90.8 | % | ||||||||||||||||||||||||||
| F&I PRU | $ | 1,117 | $ | 774 | $ | 343 | 44.3 | % | $ | (38) | 49.1 | % | ||||||||||||||||||||||||||
| Other: | ||||||||||||||||||||||||||||||||||||||
| SG&A expenses | $ | 60.5 | $ | 47.9 | $ | 12.7 | 26.4 | % | $ | (1.8) | 30.1 | % | ||||||||||||||||||||||||||
| SG&A as % gross profit | 65.1 | % | 73.9 | % | (8.8) | % | ||||||||||||||||||||||||||||||||
13
| Group 1 Automotive, Inc. | ||||||||||||||||||||
| Reconciliation of Certain Non-GAAP Financial Measures — Consolidated | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (In millions, except per share data) | ||||||||||||||||||||
| Three Months Ended March 31, 2022 | ||||||||||||||||||||
| U.S. GAAP | Dealership and real estate transactions | Non-GAAP adjusted | ||||||||||||||||||
| SG&A expenses | $ | 418.5 | $ | 21.4 | $ | 439.8 | ||||||||||||||
| Income (loss) from operations | $ | 285.0 | $ | (21.4) | $ | 263.7 | ||||||||||||||
| Income (loss) before income taxes | $ | 262.3 | $ | (21.4) | $ | 240.9 | ||||||||||||||
| Less: Provision (benefit) for income taxes | 61.2 | (4.9) | 56.3 | |||||||||||||||||
| Net income (loss) from continuing operations | 201.1 | (16.5) | 184.6 | |||||||||||||||||
| Less: Earnings (loss) allocated to participating securities | 5.8 | (0.5) | 5.3 | |||||||||||||||||
| Net income (loss) from continuing operations available to diluted common shares | $ | 195.3 | $ | (16.0) | $ | 179.3 | ||||||||||||||
| Diluted earnings (loss) per common share from continuing operations | $ | 11.78 | $ | (0.97) | $ | 10.81 | ||||||||||||||
| Effective tax rate | 23.3 | % | 23.4 | % | ||||||||||||||||
SG&A as % gross profit (1) | 57.7 | % | 60.7 | % | ||||||||||||||||
Operating margin (2) | 7.4 | % | 6.9 | % | ||||||||||||||||
Pretax margin (3) | 6.8 | % | 6.3 | % | ||||||||||||||||
| U.S. GAAP | Non-GAAP adjustments | Non-GAAP adjusted | ||||||||||||||||||
| Net income from discontinued operations | $ | 1.8 | $ | — | $ | 1.8 | ||||||||||||||
| Less: earnings allocated to participating securities | 0.1 | — | 0.1 | |||||||||||||||||
| Net income from discontinued operations available to diluted common shares | $ | 1.8 | $ | — | $ | 1.8 | ||||||||||||||
| Net income (loss) | $ | 202.9 | $ | (16.5) | $ | 186.4 | ||||||||||||||
| Less: earnings (loss) allocated to participating securities | 5.9 | (0.5) | 5.4 | |||||||||||||||||
| Net income (loss) available to diluted common shares | $ | 197.1 | $ | (16.0) | $ | 181.0 | ||||||||||||||
| Diluted earnings per common share from discontinued operations | $ | 0.11 | $ | — | $ | 0.11 | ||||||||||||||
| Diluted earnings (loss) per common share from continuing operations | 11.78 | (0.97) | 10.81 | |||||||||||||||||
| Diluted earnings (loss) per common share | $ | 11.88 | $ | (0.97) | $ | 10.92 | ||||||||||||||
(1) Adjusted SG&A as % of gross profit excludes the impact of SG&A reconciling items above.
(2) Adjusted operating margin excludes the impact of SG&A reconciling items above.
(3) Adjusted pretax margin excludes the impact of SG&A reconciling items above.
14
| Group 1 Automotive, Inc. | ||||||||||||||||||||||||||||||||
| Reconciliation of Certain Non-GAAP Financial Measures — Consolidated | ||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||
| (In millions, except per share data) | ||||||||||||||||||||||||||||||||
| Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||||||||
| U.S. GAAP | Catastrophic events | Dealership and real estate transactions | Legal matters | Non-GAAP adjusted | ||||||||||||||||||||||||||||
| SG&A expenses | $ | 311.4 | $ | (2.2) | $ | 0.3 | $ | 1.0 | $ | 310.4 | ||||||||||||||||||||||
| Income (loss) from operations | $ | 150.7 | $ | 2.2 | $ | (0.3) | $ | (1.0) | $ | 151.6 | ||||||||||||||||||||||
| Income (loss) before income taxes | $ | 130.0 | $ | 2.2 | $ | (0.3) | $ | (1.0) | $ | 130.9 | ||||||||||||||||||||||
| Less: Provision (benefit) for income taxes | 29.1 | 0.5 | (0.1) | (0.2) | 29.3 | |||||||||||||||||||||||||||
| Net income (loss) from continuing operations | 100.9 | 1.7 | (0.2) | (0.8) | 101.7 | |||||||||||||||||||||||||||
| Less: Earnings allocated to participating securities | 3.4 | 0.1 | — | — | 3.5 | |||||||||||||||||||||||||||
| Net income (loss) from continuing operations available to diluted common shares | $ | 97.5 | $ | 1.7 | $ | (0.2) | $ | (0.7) | $ | 98.2 | ||||||||||||||||||||||
| Diluted earnings (loss) per common share from continuing operations | $ | 5.47 | $ | 0.09 | $ | (0.01) | $ | (0.04) | $ | 5.51 | ||||||||||||||||||||||
| Effective tax rate | 22.4 | % | 22.4 | % | ||||||||||||||||||||||||||||
SG&A as % gross profit (1) | 64.7 | % | 64.5 | % | ||||||||||||||||||||||||||||
Operating margin (2) | 5.1 | % | 5.1 | % | ||||||||||||||||||||||||||||
Pretax margin (3) | 4.4 | % | 4.4 | % | ||||||||||||||||||||||||||||
| Same Store SG&A expenses | $ | 306.5 | $ | (2.2) | $ | — | $ | 1.0 | $ | 305.3 | ||||||||||||||||||||||
Same Store SG&A as % gross profit (1) | 64.5 | % | 64.3 | % | ||||||||||||||||||||||||||||
| Same Store income (loss) from operations | $ | 149.7 | $ | 2.2 | $ | — | $ | (1.0) | $ | 150.9 | ||||||||||||||||||||||
Same Store operating margin (2) | 5.1 | % | 5.2 | % | ||||||||||||||||||||||||||||
| U.S. GAAP | Non-GAAP adjustments | Non-GAAP adjusted | ||||||||||||||||||
| Net income from discontinued operations | $ | 1.0 | $ | — | $ | 1.0 | ||||||||||||||
| Less: earnings allocated to participating securities | — | — | — | |||||||||||||||||
| Net income from discontinued operations available to diluted common shares | $ | 1.0 | $ | — | $ | 1.0 | ||||||||||||||
| Net income | $ | 101.9 | $ | 0.7 | $ | 102.7 | ||||||||||||||
| Less: earnings allocated to participating securities | 3.5 | — | 3.5 | |||||||||||||||||
| Net income available to diluted common shares | $ | 98.5 | $ | 0.7 | $ | 99.2 | ||||||||||||||
| Diluted earnings per common share from discontinued operations | $ | 0.06 | $ | — | $ | 0.06 | ||||||||||||||
| Diluted earnings per common share from continuing operations | 5.47 | 0.04 | 5.51 | |||||||||||||||||
| Diluted earnings per common share | $ | 5.52 | $ | 0.04 | $ | 5.57 | ||||||||||||||
(1) Adjusted SG&A as % of gross profit excludes the impact of SG&A reconciling items above.
(2) Adjusted operating margin excludes the impact of SG&A reconciling items above.
(3) Adjusted pretax margin excludes the impact of SG&A reconciling items above.
15
| Group 1 Automotive, Inc. | ||||||||||||||||||||
| Reconciliation of Certain Non-GAAP Financial Measures — U.S. | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (In millions) | ||||||||||||||||||||
| Three Months Ended March 31, 2022 | ||||||||||||||||||||
| U.S. GAAP | Dealership and real estate transactions | Non-GAAP adjusted | ||||||||||||||||||
| SG&A expenses | $ | 353.6 | $ | 18.7 | $ | 372.3 | ||||||||||||||
SG&A as % gross profit (1) | 56.9 | % | 60.0 | % | ||||||||||||||||
| Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||||||||
| U.S. GAAP | Catastrophic events | Dealership and real estate transactions | Legal matters | Non-GAAP adjusted | ||||||||||||||||||||||||||||
| SG&A expenses | $ | 261.7 | $ | (2.2) | $ | 0.9 | $ | 1.0 | $ | 261.4 | ||||||||||||||||||||||
SG&A as % gross profit (1) | 63.0 | % | 62.9 | % | ||||||||||||||||||||||||||||
| Same Store SG&A expenses | $ | 258.7 | $ | (2.2) | $ | — | $ | 1.0 | $ | 257.4 | ||||||||||||||||||||||
Same Store SG&A as % gross profit (1) | 63.1 | % | 62.8 | % | ||||||||||||||||||||||||||||
(1) Adjusted SG&A as % of gross profit excludes the impact of SG&A reconciling items above.
16
| Group 1 Automotive, Inc. | ||||||||||||||||||||
| Reconciliation of Certain Non-GAAP Financial Measures — U.K. | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (In millions) | ||||||||||||||||||||
| Three Months Ended March 31, 2022 | ||||||||||||||||||||
| U.S. GAAP | Dealership and real estate transactions | Non-GAAP Adjusted | ||||||||||||||||||
| SG&A expenses | $ | 64.9 | $ | 2.7 | $ | 67.5 | ||||||||||||||
SG&A as % gross profit (1) | 62.5 | % | 65.1 | % | ||||||||||||||||
| Three Months Ended March 31, 2021 | ||||||||||||||||||||
| U.S. GAAP | Dealership and real estate transactions | Non-GAAP Adjusted | ||||||||||||||||||
| SG&A expenses | $ | 49.6 | $ | (0.6) | $ | 49.1 | ||||||||||||||
SG&A as % gross profit (1) | 75.2 | % | 74.3 | % | ||||||||||||||||
(1) Adjusted SG&A as % of gross profit excludes the impact of SG&A reconciling items above.
17