-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, S3pU6GqrnyUl64ysPg0Ne904sKNMOGAamLqmrwbK0XHkd90MTqnnfYWkb/El/7O4 z4861uqhXMRnZu0RBJS9Lg== 0001157523-03-004573.txt : 20030902 0001157523-03-004573.hdr.sgml : 20030901 20030902145336 ACCESSION NUMBER: 0001157523-03-004573 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20030902 ITEM INFORMATION: FILED AS OF DATE: 20030902 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GROUP 1 AUTOMOTIVE INC CENTRAL INDEX KEY: 0001031203 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-AUTO DEALERS & GASOLINE STATIONS [5500] IRS NUMBER: 760506313 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13461 FILM NUMBER: 03876123 BUSINESS ADDRESS: STREET 1: 950 ECHO LANE STREET 2: STE 100 CITY: HOUSTON STATE: TX ZIP: 77024 BUSINESS PHONE: 7134676268 MAIL ADDRESS: STREET 1: 950 ECHO LANE STREET 2: STE 100 CITY: HOUSTON STATE: TX ZIP: 77024 8-K 1 a4462908.txt GROUP 1 AUTOMOTIVE, INC. 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): September 2, 2003 Group 1 Automotive, Inc. (Exact name of Registrant as specified in its charter) Delaware 1-13461 76-0506313 (State or other jurisdiction of (Commission File (I.R.S. Employer incorporation or organization) Number) Identification No.) 950 Echo Lane, Suite 100 Houston, Texas 77024 (Address of principal executive offices) (Zip code) (713) 647-5700 (Registrant's telephone number including area code) Item 12. Results of Operations and Financial Condition The following sets forth certain information regarding certain historical non-GAAP financial measures (within the meaning of Regulation G and Item 10 of Regulation S-K) of the Company as well as reconciliations of such non-GAAP financial measures to the financial measures of the Company calculated and presented in accordance with GAAP that are most directly comparable to such non-GAAP financial measures. Non-GAAP Financial Measures Return on Invested Capital - -------------------------- Return on Invested Capital (ROIC) is a measurement of the return received on all capital invested in the company, including stockholders' equity, long-term debt and the present value of future rents. It is computed by dividing the net operating profit after tax (NOPAT) by the average invested capital. NOPAT equals operating income minus floorplan interest expense and interest income on excess cash, plus rent expense and amortization expense, net of tax. The average invested capital equals the average of the beginning of the year and end of the year total invested capital, which is the sum of stockholders' equity plus accumulated goodwill amortization, long-term debt and the present value of future rents, minus excess cash. NOPAT is not a measure of operating income under GAAP and invested capital is not a measure of capitalization under GAAP. Additionally, our ROIC, NOPAT and invested capital computations may not be comparable to other similarly titled measures of other companies. We believe that ROIC provides additional information regarding our ability to assess the performance of our operations and the effectiveness of our deployment of capital. These measures are widely used by investors in the valuation, comparison, rating and investment recommendations of companies.
Return on Invested Capital is calculated as follows: The following table reconciles Net Operating Profit after Tax (NOPAT) to Operating Income for the periods presented: Year Ended December 31, -------------------------------------------------------------------- 1998 1999 2000 2001 2002 ---- ---- ---- ---- ---- (dollars in 000's) Operating Income $ 52,046 $ 85,950 $ 117,720 $ 131,348 $ 137,623 Deduct: Floorplan interest expense (12,837) (20,395) (37,536) (27,935) (19,371) Interest income on excess cash (A) (1,129) (1,318) (1,145) (2,621) (1,753) Add: Rent expense 11,121 19,943 28,348 30,668 36,844 Amortization expense 2,643 5,763 8,451 9,142 1,838 -------------------------------------------------------------------- Adjusted operating income 51,844 89,943 115,838 140,602 155,181 Taxes on adjusted operating income (B) (21,360) (35,797) (44,018) (53,429) (58,193) -------------------------------------------------------------------- NOPAT $ 30,484 $ 54,146 $ 71,819 $ 87,173 $ 96,988 -------------------------------------------------------------------- The following table reconciles Invested Capital to Stockholders' Equity for the periods presented: As of December 31, --------------------------------------------------------------------------------- 1997 1998 1999 2000 2001 2002 ---- ---- ---- ---- ---- ---- (dollars in 000's) Stockholders' equity $ 89,372 $ 136,184 $ 232,029 $ 247,416 $ 392,243 $ 443,417 Add: Accumulated goodwill amortization 299 2,504 7,045 13,960 21,448 21,448 Long-term debt 9,369 45,787 114,250 141,899 97,186 84,219 Present value of future rents (C) 66,400 88,968 159,544 226,784 245,344 294,752 Less: Excess cash (D) (20,000) (10,000) (30,000) - (100,000) (20,000) --------------------------------------------------------------------------------- Total invested capital 145,440 263,443 482,868 630,059 656,221 823,836 Average invested capital $ 204,442 $ 373,156 $ 556,464 $ 643,140 $ 740,029 -------------------------------------------------------------------- Return on invested capital (NOPAT/Average invested capital) 14.9% 14.5% 12.9% 13.6% 13.1% ====================================================================
Notes: - ----- (A) Computed using the floorplan interest rate for the period times the average excess cash balance for the year. (B) Computed using the effective tax rate for the period times adjusted operating income. (C) Present value of future rents equals rent expense times 8. (D) Represents cash in excess of the working capital needed to operate our existing business. Excess cash is expected to be invested in acquisitions, capital projects, share repurchases and debt retirements. In accordance with General Instruction B.2. of Form 8-K, the information contained in this report shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such a filing. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Group 1 Automotive, Inc. September 2, 2003 By: /s/ Scott L. Thompson ------------------- -------------------------------------------------- Date Scott L. Thompson, Executive Vice President, Chief Financial Officer and Treasurer -----END PRIVACY-ENHANCED MESSAGE-----