Auto Dealers: Group 1 Automotive Reports 2004 Fourth-Quarter and Full-Year Results
HOUSTON--Feb. 24, 2005--| Company Records Annual Revenues of $5.4 Billion |
Group 1 Automotive, Inc. , a Fortune 500 specialty retailer, today reported fourth-quarter net income of $11.2 million, or $0.47 per diluted share, on revenues of $1.4 billion for the three months ended Dec. 3, 20041, 2004. Excluding certain items described in the attached schedules, the company's adjusted fourth-quarter net income was $0.56 per diluted share versus $0.54 per diluted share in 2003 on a comparable basis.
Fourth-Quarter Highlights:
-- Revenues increased 30.8 percent to $1.4 billion
-- Same store revenues grew 2.4 percent
-- Gross profit increased 25.5 percent to $219.9 million
Summary Results of Operations (Unaudited)
(In millions, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- -------------------
2004 2003 2004 2003
--------- --------- --------- ---------
Revenues $1,440.7 $1,101.4 $5,435.0 $4,518.6
Gross Profit $219.9 $175.3 $831.8 $723.4
Income from Operations $29.1 $33.3 $99.2 $149.2
Net Income $11.2 $19.6 $27.8 $76.1
Diluted Earnings per Share $0.47 $0.84 $1.18 $3.26
Results for the Fourth Quarter
During the fourth quarter, revenues increased 30.8 percent to $1.4 billion from $1.1 billion during the same period last year, largely due to acquisitions. New vehicle revenues grew 32.0 percent and used vehicle retail revenues increased 27.1 percent, while parts and service revenues grew 33.2 percent and finance and insurance revenues increased 12.3 percent. On a same store basis, total revenues were up 2.4 percent from the fourth quarter of 2003.
Gross profit for the quarter was $219.9 million, a 25.5 percent increase from $175.3 million in the prior-year period. New and used vehicles had increases in both unit sales and gross profit per retail unit sold. These increases resulted in gross profits that were 32.3 percent and 17.5 percent higher than in the prior year, respectively. Parts and service gross profit increased by 30.7 percent, although gross margin declined from 56.1 percent to 55.0 percent due to an increase in revenues from the company's lower-margin wholesale parts business in relation to its service and collision businesses. Gross profit in finance and insurance increased by 12.3 percent; however, gross profit per retail unit declined by 8.4 percent, from $1,006 to $921, reflecting both a decline in penetration rates for new and used vehicles and the impact of acquisitions with lower average gross profit per retail unit than the company's existing stores. Total gross margin declined by 60 basis points, to 15.3 percent from 15.9 percent during the year-ago period. On a same store basis, total gross profit for the quarter was down 0.5 percent, from $175.3 million in 2003 to $174.4 in 2004.
In connection with its annual assessment of goodwill and indefinite-lived intangible assets, the company determined that the fair value of one of its Los Angeles area franchises no longer supported the carrying value associated with it. As a result, the company recorded a non-cash, pretax charge of $3.3 million, which equates to $2.0 million after tax or $0.08 per diluted share. The company determined the impairment charge in accordance with Statement of Financial Accounting Standards (SFAS) No. 142, "Goodwill and Other Intangible Assets." In addition, a third-party review of the company's previously announced $41.4 million pretax charge related to its Atlanta platform was completed during the fourth quarter. No adjustment to the company's initial charge was required as a result of the review.
The company reported income from operations of $29.1 million, compared with $33.3 million in the fourth quarter of 2003. Excluding the impairment charge, operating margin was 2.2 percent, compared with 3.0 percent during the year-ago period. This decline was primarily due to the decline in gross margin noted above, as well as higher selling, general and administrative (SG&A) expenses. An accrual for costs associated with an ongoing class action lawsuit in Texas, as well as an increase in professional fees associated with the implementation of Section 404 of the Sarbanes-Oxley Act, contributed to this increase in SG&A expenses. On a same store basis, and excluding the Los Angeles impairment charge, operating margin for the quarter was 2.2 percent, compared with 3.0 percent in the prior year.
"Our fourth-quarter results reflected a continuation of the market challenges we experienced throughout 2004," said B.B. Hollingsworth Jr., Group 1's chairman, president and chief executive officer. "Despite this tough environment, our Dallas and Florida platforms delivered outstanding fourth-quarter results and, from a brand standpoint, our Honda, Nissan and luxury franchises also performed well."
Full-Year Results
For the full year 2004, revenues grew 20.3 percent to $5.4 billion, largely due to acquisitions. New vehicle revenues grew 22.3 percent and used vehicle retail revenues grew 11.8 percent, while parts and service and finance and insurance revenues grew 21.3 percent and 5.9 percent, respectively. On a same store basis, total revenues were up 2.5 percent from 2003.
Gross profit increased by 15.0 percent to $831.8 million from $723.4 million in the prior year, although gross margin fell by 70 basis points to 15.3 percent from 16.0 percent in 2003. On a same store basis, gross profit for the year decreased by 1.1 percent, from $718.8 million in 2003 to $710.7 million in 2004.
Income from operations declined from $149.2 million in 2003 to $99.2 million in 2004. This includes the non-cash, pretax charges totaling $44.7 million to impair goodwill, certain other long-lived assets and indefinite-lived intangible assets noted above. Excluding these impairment charges, operating margin was 2.6 percent, compared with 3.3 percent during the year-ago period. This 70 basis point decline was largely attributable to the decline in gross margin noted above. SG&A expenses as a percentage of gross profit increased by 320 basis points during the year, as savings from certain variable cost control initiatives were offset by increased costs related to a severe hailstorm in June, hurricanes in September, the class action lawsuit in Texas mentioned above and professional fees associated with the implementation of Section 404 of the Sarbanes-Oxley Act. On a same store basis, and again excluding the impairment charges, operating margin for the year was 2.7 percent, compared with 3.3 percent in the prior year.
Including the impairment charges, net income for the year was $27.8 million, or $1.18 per diluted share, compared with $3.26 per diluted share on net income of $76.1 million during 2003. Excluding certain items described in the attached schedules, the company's adjusted full-year net income was $2.68 per diluted share, a reduction of 6.9 percent on a comparable basis from $2.88 per diluted share in 2003.
Acquisition Update
During 2004, Group 1 added 23 franchises with expected annual revenues of approximately $1.2 billion. The brand mix of these franchises consists of 24 percent domestic and 76 percent import, including 39 percent luxury. The aggregate consideration paid for these acquisitions was approximately $221.7 million in cash, net of cash received, the assumption of approximately $109.7 million in inventory financing and 394,313 shares of Group 1 common stock. The cash portion of these transactions was funded with a combination of cash on hand and borrowings under the company's revolving credit facility.
In January 2005, the company completed the acquisition of new Dodge and Chrysler franchises in Tulsa, Okla. Both of these franchises became part of the Bob Howard Auto Group and are expected to generate aggregate annual revenues of $46 million. The Chrysler franchise has become part of the Crown Auto World dealership, and the Dodge dealership has been renamed Bob Howard Downtown Dodge.
Management's Outlook
Group 1 anticipates 2005 full-year earnings per diluted share of $2.95 to $3.05, excluding any future acquisitions. This estimate is based on average diluted shares outstanding of 24.2 million.
"Oversupply of domestic new vehicles remains a major concern in the industry," said Hollingsworth. "Until inventories more closely match consumer demand, we believe that most of our markets will remain highly competitive, pressures on gross margins will continue and sales will be driven by automakers' incentive programs. In the meantime, we will focus on improving our operating margins and integrating our newly acquired franchises."
Hollingsworth also noted that the company will continue to seek accretive acquisitions that fit its stringent criteria, although at a slower pace than in 2004. "While we are pleased with the results of our 2004 acquisition program, we recognize the need to complete the integration of these newly acquired franchises. As a result, we are establishing a 2005 acquisition target of $300 million in aggregate anticipated annual revenues," he said. The above-mentioned earnings per share guidance excludes any financial impact from these acquisitions.
Fourth-Quarter and Full-Year Conference Call
About Group 1 Automotive, Inc.
Group 1 owns 96 automotive dealerships comprised of 142 franchises, 33 brands and 32 collision service centers located in California, Colorado, Florida, Georgia, Louisiana, Massachusetts, New Jersey, New Mexico, New York, Oklahoma and Texas. Through its dealerships and Internet sites, the company sells new and used cars and light trucks; arranges related financing, vehicle service and insurance contracts; provides maintenance and repair services; and sells replacement parts.
Group 1 Automotive can be reached on the Internet at www.group1auto.com.
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FINANCIAL TABLES TO FOLLOW
Group 1 Automotive, Inc.
Consolidated Statements of Operations
(Unaudited)
(Dollars in thousands, except per share amounts)
For the Three Months Ended
December 31,
---------------------------------
2004 2003 % Change
----------- ----------- ---------
REVENUES:
New vehicle retail sales $896,959 $679,475 32.0 %
Used vehicle - retail sales 251,256 197,687 27.1
Used vehicle - wholesale sales 94,399 69,636 35.6
Parts and service 155,625 116,805 33.2
Finance and insurance 42,459 37,796 12.3
----------- ----------- ---------
Total revenues 1,440,698 1,101,399 30.8 %
COST OF SALES:
New vehicle retail sales 831,903 630,293 32.0 %
Used vehicle - retail sales 221,333 174,998 26.5
Used vehicle - wholesale sales 97,487 69,496 40.3
Parts and service 70,031 51,312 36.5
----------- ----------- ---------
Total cost of sales 1,220,754 926,099 31.8 %
GROSS PROFIT 219,944 175,300 25.5 %
SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES 182,943 138,768 31.8 %
DEPRECIATION AND AMORTIZATION EXPENSE 4,596 3,239 41.9 %
ASSET IMPAIRMENTS 3,338 - -
----------- ----------- ---------
Income from operations 29,067 33,293 (12.7)%
OTHER INCOME (EXPENSE):
Floorplan interest expense (7,688) (4,368) 76.0 %
Other interest expense, net (5,672) (5,990) (5.3)
Loss on redemption of senior
subordinated notes - - -
Other income (expense), net 77 738 (89.6)
----------- ----------- ---------
INCOME BEFORE INCOME TAXES 15,784 23,673 (33.3)%
PROVISION FOR INCOME TAXES 4,589 4,037 13.7 %
----------- ----------- ---------
NET INCOME $11,195 $19,636 (43.0)%
=========== =========== =========
Diluted earnings per share $0.47 $0.84 (44.0)%
Weighted average diluted shares
outstanding 23,693,037 23,485,959 0.9 %
For the Twelve Months Ended
December 31,
---------------------------------
2004 2003 % Change
----------- ----------- ---------
REVENUES:
New vehicle retail sales $3,348,875 $2,739,315 22.3 %
Used vehicle - retail sales 988,797 884,819 11.8
Used vehicle - wholesale sales 359,247 265,187 35.5
Parts and service 565,213 465,989 21.3
Finance and insurance 172,901 163,250 5.9
----------- ----------- ---------
Total revenues 5,435,033 4,518,560 20.3 %
COST OF SALES:
New vehicle retail sales 3,112,140 2,539,319 22.6 %
Used vehicle - retail sales 868,351 778,266 11.6
Used vehicle - wholesale sales 367,513 271,328 35.4
Parts and service 255,263 206,236 23.8
----------- ----------- ---------
Total cost of sales 4,603,267 3,795,149 21.3 %
GROSS PROFIT 831,766 723,411 15.0 %
SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES 672,068 561,698 19.6 %
DEPRECIATION AND AMORTIZATION EXPENSE 15,836 12,510 26.6 %
ASSET IMPAIRMENTS 44,711 - -
----------- ----------- ---------
Income from operations 99,151 149,203 (33.5)%
OTHER INCOME (EXPENSE):
Floorplan interest expense (25,349) (21,571) 17.5 %
Other interest expense, net (19,299) (15,191) 27.0
Loss on redemption of senior
subordinated notes (6,381) - -
Other income (expense), net (170) 631 (126.9)
----------- ----------- ---------
INCOME BEFORE INCOME TAXES 47,952 113,072 (57.6)%
PROVISION FOR INCOME TAXES 20,171 36,946 (45.4)%
----------- ----------- ---------
NET INCOME $27,781 $76,126 (63.5)%
=========== =========== =========
Diluted earnings per share $1.18 $3.26 (63.8)%
Weighted average diluted shares
outstanding 23,493,899 23,346,221 0.6 %
Group 1 Automotive, Inc.
Consolidated Balance Sheets
(Unaudited)
(Dollars in thousands)
As of December 31,
---------------------------------
2004 2003 % Change
----------- ----------- ---------
ASSETS:
CURRENT ASSETS:
Cash $37,809 $26,712 41.5 %
Contracts in transit and vehicle
receivables, net 172,402 143,260 20.3
Accounts and notes receivable, net 76,687 63,669 20.4
Inventories, net 877,575 671,279 30.7
Deferred income taxes 10,870 11,163 (2.6)
Prepaid expenses and other current
assets 31,056 21,046 47.6
----------- ----------- ---------
Total current assets 1,206,399 937,129 28.7
PROPERTY AND EQUIPMENT, net 160,297 131,647 21.8
GOODWILL 366,673 328,491 11.6
INTANGIBLE ASSETS 187,135 76,656 144.1
OTHER ASSETS 22,831 28,522 (20.0)
----------- ----------- ---------
Total assets $1,943,335 $1,502,445 29.3 %
=========== =========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES:
Floorplan notes payable $848,260 $493,568 71.9 %
Current maturities of long-term
debt 1,054 910 15.8
Accounts payable 108,920 87,675 24.2
Accrued expenses 94,510 77,461 22.0
----------- ----------- ---------
Total current liabilities 1,052,744 659,614 59.6
DEBT, net of current maturities 156,747 230,178 (31.9)
ACQUISITION LINE OF CREDIT 84,000 - -
DEFERRED INCOME TAXES 29,312 33,786 (13.2)
OTHER LIABILITIES 21,306 20,003 6.5
----------- ----------- ---------
Total liabilities before
deferred revenues 1,344,109 943,581 42.4
----------- ----------- ---------
DEFERRED REVENUES 32,052 40,755 (21.4)
STOCKHOLDERS' EQUITY:
Common stock 239 235 1.7
Additional paid-in capital 265,645 255,356 4.0
Retained earnings 318,931 291,150 9.5
Accumulated other comprehensive
loss (173) (1,285) (86.5)
Treasury stock (17,468) (27,347) (36.1)
----------- ----------- ---------
Total stockholders' equity 567,174 518,109 9.5
----------- ----------- ---------
Total liabilities and
stockholders' equity $1,943,335 $1,502,445 29.3 %
=========== =========== =========
BALANCE SHEET DATA:
Working capital $153,655 $277,515 (44.6)%
Current ratio 1.15 1.42 (19.0)
Long-term debt to capitalization 30% 31%
Inventory days supply: (1)
New vehicle 70 75 (6.7)
Used vehicle 29 31 (6.5)
(1) Inventory days supply equals units in inventory as of the end of
the period, divided by units sales for the month then ended, times
30 days.
Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
For the Twelve Months
Ended December 31,
------------------------------
2004 2003
-------------- --------------
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
Platform State(s)
----------------------- -------------
Ira Motor Group Massachusetts 12.8 % 12.7 %
Sterling McCall Texas
Automotive Group 12.1 12.7
Bob Howard Auto Group Oklahoma 12.0 14.3
Miller Automotive Group California 11.3 11.9
Gene Messer Auto Group Texas 8.0 9.0
Maxwell Automotive Texas
Group 7.9 7.6
Bohn Automotive Group Louisiana 6.4 6.6
Group 1 Florida Florida 6.1 7.6
Group 1 Atlanta Georgia 5.1 6.0
Peterson Automotive California
Group 4.2 -
Rocky Mountain Colorado/New
Mexico 4.0 4.4
Courtesy Auto Group Texas 3.5 3.9
David Michael Motor New Jersey
Cars 2.9 -
Mike Smith Automotive Texas
Group 2.6 3.3
Hassel Auto Group New York 1.1 -
-------------- --------------
100.0 % 100.0 %
NEW VEHICLE UNIT SALES BRAND MIX:
Toyota/Scion/Lexus 27.7 % 26.2 %
Ford 20.5 25.5
DaimlerChrysler 14.1 12.3
GM 10.9 10.2
Nissan/Infiniti 10.7 10.5
Honda/Acura 9.5 9.8
Other 6.6 5.5
-------------- --------------
100.0 % 100.0 %
NEW VEHICLE UNIT OTHER MIX:
Domestic/Import 42.0 % / 58.0 % 46.9 % / 53.1 %
Luxury/Non-luxury 14.0 % / 86.0 % 12.1 % / 87.9 %
Car/Truck 42.8 % / 57.2 % 41.3 % / 58.7 %
Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
(Dollars in thousands, except per unit amounts)
For the Three Months Ended December 31,
----------------------------------------
2004 2003 % Change
------------- -------------- ----------
REVENUES:
New vehicle retail sales $896,959 $679,475 32.0 %
Used vehicle - retail sales 251,256 197,687 27.1
Used vehicle - wholesale
sales 94,399 69,636 35.6
------------- -------------- ----------
Total used 345,655 267,323 29.3
Parts and service 155,625 116,805 33.2
Finance and insurance 42,459 37,796 12.3
------------- -------------- ----------
Total 1,440,698 1,101,399 30.8 %
GROSS PROFIT (LOSS):
New vehicle retail sales $65,056 $49,182 32.3 %
Used vehicle - retail sales 29,923 22,689 31.9
Used vehicle - wholesale
sales (3,088) 140 (2,305.7)
------------- -------------- ----------
Total used 26,835 22,829 17.5
Parts and service 85,594 65,493 30.7
Finance and insurance 42,459 37,796 12.3
------------- -------------- ----------
Total 219,944 175,300 25.5 %
GROSS MARGIN:
New vehicle retail sales 7.3 % 7.2 %
Used vehicle - retail sales 11.9 11.5
Used vehicle - wholesale
sales (3.3) 0.2
------------- --------------
Total used 7.8 8.5
Parts and service 55.0 56.1
Finance and insurance 100.0 100.0
------------- --------------
Total 15.3 % 15.9 %
UNITS SOLD:
Retail new vehicles sold 30,107 23,854 26.2 %
Retail used vehicles sold 16,018 13,721 16.7
------------- -------------- ----------
Total retail sales 46,125 37,575 22.8
Wholesale used vehicles sold 12,857 10,820 18.8 %
GROSS PROFIT (LOSS) PER UNIT SOLD:
New vehicle retail sales $2,161 $2,062 4.8 %
Used vehicle - retail sales 1,868 1,654 12.9
Used vehicle - wholesale
sales (240) 13 (1,946.2)
Total used (per retail
unit sold) 1,675 1,664 0.7
Finance and insurance 921 1,006 (8.4)
OTHER:
SG&A expenses $182,943 $138,768 31.8 %
SG&A as % revenues 12.7 % 12.6 %
SG&A as % gross profit 83.2 % 79.2 %
Operating margin 2.0 % 3.0 %
Pretax income margin 1.1 % 2.1 %
Floorplan interest $(7,688) $(4,368) 76.0 %
Floorplan assistance 8,748 6,902 26.7
------------- -------------- ----------
Net floorplan benefit 1,060 2,534 (58.2)
For the Twelve Months Ended December 31,
----------------------------------------
2004 2003 % Change
------------- -------------- ----------
REVENUES:
New vehicle retail sales $3,348,875 $2,739,315 22.3 %
Used vehicle - retail sales 988,797 884,819 11.8
Used vehicle - wholesale
sales 359,247 265,187 35.5
------------- -------------- ----------
Total used 1,348,044 1,150,006 17.2
Parts and service 565,213 465,989 21.3
Finance and insurance 172,901 163,250 5.9
------------- -------------- ----------
Total 5,435,033 4,518,560 20.3 %
GROSS PROFIT (LOSS):
New vehicle retail sales $236,735 $199,996 18.4 %
Used vehicle - retail sales 120,446 106,553 13.0
Used vehicle - wholesale
sales (8,266) (6,141) 34.6
------------- -------------- ----------
Total used 112,180 100,412 11.7
Parts and service 309,950 259,753 19.3
Finance and insurance 172,901 163,250 5.9
------------- -------------- ----------
Total 831,766 723,411 15.0 %
GROSS MARGIN:
New vehicle retail sales 7.1 % 7.3 %
Used vehicle - retail sales 12.2 12.0
Used vehicle - wholesale
sales (2.3) (2.3)
------------- --------------
Total used 8.3 8.7
Parts and service 54.8 55.7
Finance and insurance 100.0 100.0
------------- --------------
Total 15.3 % 16.0 %
UNITS SOLD:
Retail new vehicles sold 117,971 99,971 18.0 %
Retail used vehicles sold 66,336 62,721 5.8
------------- -------------- ----------
Total retail sales 184,307 162,692 13.3
Wholesale used vehicles sold 49,372 43,616 13.2 %
GROSS PROFIT (LOSS) PER UNIT SOLD:
New vehicle retail sales $2,007 $2,001 0.3 %
Used vehicle - retail sales 1,816 1,699 6.9
Used vehicle - wholesale
sales (167) (141) 18.4
Total used (per retail
unit sold) 1,691 1,601 5.6
Finance and insurance 938 1,003 (6.5)
OTHER:
SG&A expenses $672,068 $561,698 19.6 %
SG&A as % revenues 12.4 % 12.4 %
SG&A as % gross profit 80.8 % 77.6 %
Operating margin 1.8 % 3.3 %
Pretax income margin 0.9 % 2.5 %
Floorplan interest $(25,349) $(21,571) 17.5 %
Floorplan assistance 33,206 27,354 21.4
------------- -------------- ----------
Net floorplan benefit 7,857 5,783 35.9
Group 1 Automotive, Inc.
Additional Information - Same Store(1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
For the Three Months Ended December 31,
----------------------------------------
2004 2003 % Change
-------------- ------------- -----------
REVENUES:
New vehicle retail sales $684,482 $679,475 0.7 %
Used vehicle - retail sales 210,883 197,686 6.7
Used vehicle - wholesale
sales 75,924 69,637 9.0
-------------- ------------- -----------
Total used 286,807 267,323 7.3
Parts and service 121,045 116,804 3.6
Finance and insurance 35,674 37,833 (5.7)
-------------- ------------- -----------
Total 1,128,008 1,101,435 2.4 %
GROSS PROFIT (LOSS):
New vehicle retail sales $49,446 $49,185 0.5 %
Used vehicle - retail sales 25,576 22,688 12.7
Used vehicle - wholesale
sales (2,781) 141 (2,072.3)
-------------- ------------- -----------
Total used 22,795 22,829 (0.1)
Parts and service 66,515 65,491 1.6
Finance and insurance 35,674 37,833 (5.7)
-------------- ------------- -----------
Total 174,430 175,338 (0.5)%
GROSS MARGIN:
New vehicle retail sales 7.2 % 7.2 %
Used vehicle - retail sales 12.1 11.5
Used vehicle - wholesale
sales (3.7) 0.2
-------------- -------------
Total used 7.9 8.5
Parts and service 55.0 56.1
Finance and insurance 100.0 100.0
-------------- -------------
Total 15.5 % 15.9 %
UNITS SOLD:
Retail new vehicles sold 23,804 23,854 (0.2)%
Retail used vehicles sold 13,886 13,721 1.2
-------------- ------------- -----------
Total retail sales 37,690 37,575 0.3
Wholesale used vehicles sold 10,718 10,820 (0.9)%
GROSS PROFIT (LOSS) PER UNIT
SOLD:
New vehicle retail sales $2,077 $2,062 0.7 %
Used vehicle - retail sales 1,842 1,654 11.4
Used vehicle - wholesale
sales (259) 13 (2,092.3)
Total used (per retail
unit sold) 1,642 1,664 (1.3)
Finance and insurance 947 1,007 (6.0)
OTHER:
SG&A expenses $145,676 $138,771 5.0 %
SG&A as % revenues 12.9 % 12.6 %
SG&A as % gross profit 83.5 % 79.1 %
Operating margin 1.9 % 3.0 %
For the Twelve Months Ended December 31,
----------------------------------------
2004 2003 % Change
-------------- ------------- -----------
REVENUES:
New vehicle retail sales $2,783,249 $2,717,746 2.4 %
Used vehicle - retail sales 870,301 876,864 (0.7)
Used vehicle - wholesale
sales 310,202 263,055 17.9
-------------- ------------- -----------
Total used 1,180,503 1,139,919 3.6
Parts and service 477,559 462,579 3.2
Finance and insurance 153,886 162,328 (5.2)
-------------- ------------- -----------
Total 4,595,197 4,482,572 2.5 %
GROSS PROFIT (LOSS):
New vehicle retail sales $195,745 $198,745 (1.5)%
Used vehicle - retail sales 106,601 105,783 0.8
Used vehicle - wholesale
sales (7,740) (6,083) 27.2
-------------- ------------- -----------
Total used 98,861 99,700 (0.8)
Parts and service 262,212 258,006 1.6
Finance and insurance 153,886 162,328 (5.2)
-------------- ------------- -----------
Total 710,704 718,779 (1.1)%
GROSS MARGIN:
New vehicle retail sales 7.0 % 7.3 %
Used vehicle - retail sales 12.2 12.1
Used vehicle - wholesale
sales (2.5) (2.3)
-------------- -------------
Total used 8.4 8.7
Parts and service 54.9 55.8
Finance and insurance 100.0 100.0
-------------- -------------
Total 15.5 % 16.0 %
UNITS SOLD:
Retail new vehicles sold 99,862 99,250 0.6 %
Retail used vehicles sold 59,358 62,177 (4.5)
-------------- ------------- -----------
Total retail sales 159,220 161,427 (1.4)
Wholesale used vehicles sold 43,276 43,362 (0.2)%
GROSS PROFIT (LOSS) PER UNIT
SOLD:
New vehicle retail sales $1,960 $2,002 (2.1)%
Used vehicle - retail sales 1,796 1,701 5.6
Used vehicle - wholesale
sales (179) (140) 27.9
Total used (per retail
unit sold) 1,666 1,603 3.9
Finance and insurance 966 1,006 (4.0)
OTHER:
SG&A expenses $573,210 $557,589 2.8 %
SG&A as % revenues 12.5 % 12.4 %
SG&A as % gross profit 80.7 % 77.6 %
Operating margin 1.7 % 3.3 %
(1) Same store amounts include the results for the identical months in
each period presented in the comparison, commencing with the first
month we owned the dealership and, in the case of dispositions,
ending with the last month we owned it. Same store results also
include the activities of the corporate office.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures
(Unaudited)
(Dollars in thousands, except per share amounts)
Net Income Diluted EPS
--------------------------- -----------------------
Q4 Q4 Q4 Q4
2004 2003 % Change 2004 2003 % Change
-------- -------- --------- ------ ------ ---------
Q4 2004 vs. Q4 2003
RECONCILIATION:
As reported $11,195 $19,636 (43.0)% $0.47 $0.84 (44.0)%
Adjustments:
Asset
impairments 1,979 0.08
Tax
contingencies - (4,840) - (0.21)
Used vehicle
reserves - (2,133) - (0.09)
-------- -------- --------- ------ ------ ---------
As adjusted $13,174 $12,663 4.0 % $0.56 $0.54 1.9 %
Net Income Diluted EPS
--------------------------- -----------------------
2004 2003 % Change 2004 2003 % Change
-------- -------- --------- ------ ------ ---------
2004 vs. 2003
RECONCILIATION:
As reported $27,781 $76,126 (63.5)% $1.18 $3.26 (63.8)%
Adjustments:
Asset
impairments 31,239 - 1.33 -
Loss on
redemption of
senior
subordinated
notes 4,011 - 0.17 -
Tax
contingencies - (5,423) - (0.23)
Used vehicle
reserves - (3,426) - (0.15)
-------- -------- --------- ------ ------ ---------
As adjusted $63,031 $67,277 (6.3)% $2.68 $2.88 (6.9)%
Note: Columns and rows may not foot due to rounding.