Group 1 Automotive Reports Third-Quarter Results
HOUSTON--Nov. 1, 2005--Group 1 Automotive, Inc. , a Fortune 500 specialty retailer, today reported third-quarter net income of $21.6 million, or $0.88 per diluted share, compared with a net loss of $9.6 million, or $0.42 per diluted share, in the third quarter of 2004.
Summary Results of Operations (Unaudited)
(In millions, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------- ---------------------
2005 2004 2005 2004
---------- ---------- ---------- ----------
Revenues $ 1,570.2 $ 1,532.4 $ 4,544.2 $ 3,994.3
Gross Profit $ 243.1 $ 229.9 $ 707.7 $ 611.8
Income from Operations $ 47.3 $ 1.7 $ 127.3 $ 69.9
Income before Cumulative
Effect of a Change in
Accounting Principle $ 21.6 $ (9.6) $ 54.1 $ 16.6
Diluted Earnings per Share
before Cumulative Effect
of a Change in Accounting
Principle $ 0.88 $ (0.42) $ 2.24 $ 0.71
Third-Quarter Results
Total revenues for the third quarter increased 2.5 percent to $1.6 billion. Gross profit increased 5.8 percent from the prior-year period to $243.1 million, reflecting a 50 basis point increase in gross margin to 15.5 percent. Income from operations was $47.3 million in the third quarter, resulting in an operating margin of 3.0 percent.
On a same store basis, excluding the six New Orleans-area dealerships affected by Hurricane Katrina, revenues grew 1.6 percent. This increase was highlighted by increases in each of the company's four businesses. Same store gross profit, excluding New Orleans, increased 5.0 percent, reflecting increases of 11.9 percent in total used vehicles, 6.3 percent in parts and service, 2.5 percent in new vehicles, and 2.0 percent in finance and insurance. Same store gross margin, excluding New Orleans, increased by 50 basis points to 15.6 percent. Excluding New Orleans, same store selling, general and administrative (SG&A) expenses as a percentage of gross profit declined by 490 basis points, reflecting both the above-noted increase in gross profit, as well as a reduction in SG&A expenses from 12.0 percent of revenues to 11.6 percent of revenues. Same store operating margin, excluding New Orleans, was 3.4 percent.
As noted above, the company reported third-quarter net income of $0.88 per diluted share, compared with a net loss of $0.42 per diluted share in the third quarter of 2004. These results include certain asset impairments and hurricane-related losses and charges, as described below.
During the third quarter, the company recorded approximately $0.10 per diluted share in asset impairments associated with the pending disposition of certain of the company's dealership assets in California. In the third quarter of 2004, the company recorded a $1.26 per diluted share charge related to the impairment of goodwill at its Atlanta platform.
The company estimates that the total financial impact of Hurricanes Katrina and Rita in the third quarter was $0.22 per diluted share. This amount includes insurance deductibles, clean up and repair costs, asset impairments, other direct operating losses and the estimated impact of lost sales as a result of the storms at each of the company's New Orleans, Beaumont, Texas, and Houston-area dealerships.
As previously announced, four of Group 1's six New Orleans-area dealerships have resumed operations after being closed for approximately two weeks following Hurricane Katrina. Two dealerships remain closed. As a result of the damage sustained at one of these closed dealerships, the company has terminated its facility lease and is exploring alternatives for returning the dealership to full operation. Group 1's two Beaumont dealerships have resumed operations after temporary closures due to Hurricane Rita.
"Despite the challenges of two hurricanes during the quarter, our profitability improved across the board. I am especially pleased with our gross profit increases in our used vehicle and parts and service operations," said Earl J. Hesterberg, Group 1's president and chief executive officer. "Our results were also impacted by the employee-pricing programs offered by some automobile manufacturers. Although this helped to boost new vehicle sales and reduce inventories in July and August, we have experienced a significant reduction in domestic-brand sales and traffic since early September. It now appears unlikely that overall industry sales levels will soon return to those seen in the summer months, and we remain cautious about the fourth quarter."
Year-to-Date Results
For the first nine months of 2005, total revenues grew 13.8 percent to $4.5 billion. New vehicle revenues grew 13.9 percent and total used vehicle revenues grew 11.9 percent, while parts and service and finance and insurance revenues grew 19.0 percent and 10.1 percent, respectively. On a same store basis, again excluding the company's New Orleans-area dealerships, revenues were up 2.2 percent from 2004. Same store operating margin, excluding New Orleans, was 3.0 percent.
Income before the cumulative effect of a change in accounting principle for the nine-month period was $54.1 million, or $2.24 per diluted share, compared with $16.6 million, or $0.71 per diluted share, in 2004. The 2005 results include the above-noted asset impairments and hurricane-related financial impact other than the impact of lost sales, as well as a $0.04 per diluted share charge related to compensation and other costs associated with the company's CEO transition. The 2004 results included a $1.25 per diluted share charge related to the impairment of goodwill at the company's Atlanta platform and a $0.17 per diluted share charge related to the March 2004 redemption of the company's 10 7/8 percent senior subordinated notes.
Acquisition / Disposition Update
In August, Group 1 acquired Chrysler and Jeep franchises in Beaumont, Texas, to augment its existing autoplex dealership in that market. These two franchises are expected to generate $9.4 million in estimated annual revenues. Including this acquisition, the company has acquired seven franchises with total estimated annual revenues of $118.1 million during 2005. The company noted that it does not anticipate closing any additional acquisitions for the remainder of the year.
On Oct. 17, the company disposed of its Lincoln-Mercury dealership in Edmond, Okla. The dealership had 2004 revenues of approximately $21.8 million.
Company Strategy
Group 1 also announced several strategic initiatives it will pursue over the next year. These initiatives include expansion of used vehicle and parts and service sales, implementation of a used vehicle inventory management software system, rationalization of dealership management system suppliers from three to two, and implementation of a standard chart of accounts. To execute these initiatives and drive greater operational synergies and process consistency, Group 1's field management structure is being revised from its current structure of 13 platform leaders to five regional vice presidents, who will report directly to Hesterberg. This change will take effect Jan. 1, 2006.
Additionally, Group 1 anticipates disposing of dealerships representing at least $120 million in annual revenues during the next 14 months and expects to return to an acquisition level of at least $300 million in estimated revenues per year beginning in 2006.
Finally, the company advised that it will target an annual earnings-per-share growth rate of at least 15 percent during the next three to five years.
Management's Outlook
Group 1 reaffirmed its 2005 full-year earnings-per-share guidance of $2.75 to $2.80 provided by the company earlier this month. The guidance is based on weighted average diluted shares outstanding of 24.1 million. It excludes the impacts of any future acquisitions or dispositions and any cumulative effect of a change in accounting principle.
About Group 1 Automotive, Inc.
Group 1 owns 94 automotive dealerships comprised of 142 franchises, 32 brands and 30 collision service centers located in California, Colorado, Florida, Georgia, Louisiana, Massachusetts, New Hampshire, 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.
Group 1 Automotive, Inc.
Consolidated Statements of Operations
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended September 30,
--------------------------------------
2005 2004 % Change
----------- ----------- ----------
REVENUES:
New vehicle retail sales $ 977,492 $ 962,021 1.6 %
Used vehicle retail sales 279,484 265,544 5.2
Used vehicle wholesale sales 98,439 101,551 (3.1)
Parts and service 165,017 154,285 7.0
Finance and insurance 49,737 49,006 1.5
----------- ----------- ----------
Total revenues 1,570,169 1,532,407 2.5 %
COST OF SALES:
New vehicle retail sales 907,731 895,634 1.4 %
Used vehicle retail sales 243,756 232,779 4.7
Used vehicle wholesale sales 100,248 104,132 (3.7)
Parts and service 75,316 69,978 7.6
----------- ----------- ----------
Total cost of sales 1,327,051 1,302,523 1.9 %
GROSS PROFIT 243,118 229,884 5.8 %
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 186,216 182,682 1.9 %
DEPRECIATION AND
AMORTIZATION EXPENSE 4,597 4,086 12.5 %
IMPAIRMENT OF GOODWILL
AND LONG-LIVED ASSETS 4,987 41,373 (87.9)%
----------- ----------- ----------
INCOME FROM OPERATIONS 47,318 1,743 2,614.7 %
OTHER INCOME (EXPENSE):
Floorplan interest expense (9,259) (6,813) 35.9 %
Other interest expense, net (4,344) (4,697) (7.5)
Loss on redemption of senior
subordinated notes - - -
Other income (expense), net 87 1 8,600.0
----------- ----------- ----------
INCOME (LOSS) BEFORE INCOME
TAXES 33,802 (9,766) (446.1)%
PROVISION (BENEFIT) FOR
INCOME TAXES 12,176 (151) (8,163.6)%
----------- ----------- ----------
INCOME (LOSS) BEFORE
CUMULATIVE EFFECT OF A
CHANGE IN ACCOUNTING
PRINCIPLE 21,626 (9,615) (324.9)
CUMULATIVE EFFECT OF A CHANGE
IN ACCOUNTING PRINCIPLE, NET
OF TAX BENEFIT OF $10,231 - - -
----------- ----------- ----------
NET INCOME (LOSS) $ 21,626 $ (9,615) (324.9)%
=========== =========== ==========
DILUTED EARNINGS (LOSS) PER
SHARE:
Income (loss) before
cumulative effect of a
change in accounting
principle $ 0.88 $ (0.42) (309.5)%
Cumulative effect of a change
in accounting
principle - - -
----------- ----------- ----------
Net income (loss) $ 0.88 $ (0.42) (309.5)%
=========== =========== ==========
Weighted average diluted
shares outstanding 24,570,979 22,946,245 7.1 %
Nine Months Ended September 30,
--------------------------------------
2005 2004 % Change
----------- ------------ ----------
REVENUES:
New vehicle retail sales $ 2,791,812 $ 2,451,916 13.9 %
Used vehicle retail sales 819,816 737,541 11.2
Used vehicle wholesale sales 301,419 264,848 13.8
Parts and service 487,534 409,588 19.0
Finance and insurance 143,648 130,442 10.1
----------- ------------ ----------
Total revenues 4,544,229 3,994,335 13.8 %
COST OF SALES:
New vehicle retail sales 2,594,379 2,280,237 13.8 %
Used vehicle retail sales 715,978 647,018 10.7
Used vehicle wholesale sales 303,702 270,026 12.5
Parts and service 222,473 185,232 20.1
----------- ------------ ----------
Total cost of sales 3,836,532 3,382,513 13.4 %
GROSS PROFIT 707,697 611,822 15.7 %
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 560,853 489,309 14.6 %
DEPRECIATION AND
AMORTIZATION EXPENSE 14,522 11,241 29.2 %
IMPAIRMENT OF GOODWILL
AND LONG-LIVED ASSETS 4,987 41,373 (87.9)%
----------- ------------ ----------
INCOME FROM OPERATIONS 127,335 69,899 82.2 %
OTHER INCOME (EXPENSE):
Floorplan interest expense (27,998) (17,660) 58.5 %
Other interest expense, net (14,174) (13,627) 4.0
Loss on redemption of senior
subordinated notes - (6,381) (100.0)
Other income (expense), net 95 (63) (250.8)
----------- ------------ ----------
INCOME (LOSS) BEFORE INCOME
TAXES 85,258 32,168 165.0 %
PROVISION (BENEFIT) FOR INCOME
TAXES 31,143 15,582 99.9 %
----------- ------------ ----------
INCOME (LOSS) BEFORE CUMULATIVE
EFFECT OF A CHANGE IN
ACCOUNTING PRINCIPLE 54,115 16,586 226.3
CUMULATIVE EFFECT OF A CHANGE
IN ACCOUNTING PRINCIPLE, NET
OF TAX BENEFIT OF $10,231 (16,038) - -
----------- ------------ ----------
NET INCOME (LOSS) $ 38,077 $ 16,586 129.6 %
=========== ============ ==========
DILUTED EARNINGS (LOSS) PER
SHARE:
Income (loss) before cumulative
effect of a change in
accounting principle $ 2.24 $ 0.71 215.5 %
Cumulative effect of a change
in accounting
principle (0.66) - -
----------- ------------ ----------
Net income (loss) $ 1.58 $ 0.71 122.5 %
=========== ============ ==========
Weighted average diluted shares
outstanding 24,149,585 23,427,035 3.1 %
Group 1 Automotive, Inc.
Consolidated Balance Sheets
(Unaudited)
(Dollars in thousands)
September 30, December 31,
2005 2004 % Change
----------- ---------- ---------
ASSETS:
CURRENT ASSETS:
Cash and cash equivalents $ 33,528 $ 37,750 (11.2)%
Contracts in transit and vehicle
receivables, net 137,000 172,402 (20.5)
Accounts and notes receivable,
net 89,114 76,687 16.2
Inventories 686,694 877,575 (21.8)
Deferred income taxes 17,691 14,755 19.9
Prepaid expenses and other current
assets 17,395 26,046 (33.2)
----------- ---------- ---------
Total current assets 981,422 1,205,215 (18.6)
PROPERTY AND EQUIPMENT, net 176,033 160,297 9.8
GOODWILL 373,530 366,673 1.9
INTANGIBLE FRANCHISE RIGHTS 169,185 187,135 (9.6)
OTHER ASSETS 25,570 27,900 (8.4)
----------- ---------- ---------
Total assets $ 1,725,740 $1,947,220 (11.4)%
=========== ========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES:
Floorplan notes payable $ 634,830 $ 848,260 (25.2)%
Acquisition line of credit 25,000 - N/A
Current maturities of long-term
debt 948 1,054 (10.1)
Accounts payable 99,561 108,920 (8.6)
Accrued expenses 99,469 91,528 8.7
----------- ---------- ---------
Total current liabilities 859,808 1,049,762 (18.1)
LONG-TERM DEBT, net of current
maturities 158,185 156,747 0.9
ACQUISITION LINE - 84,000 (100.0)
DEFERRED INCOME TAXES 27,030 33,197 (18.6)
OTHER LIABILITIES 27,156 24,288 11.8
----------- ---------- ---------
Total liabilities before
deferred revenues 1,072,179 1,347,994 (20.5)
----------- ---------- ---------
DEFERRED REVENUES 27,040 32,052 (15.6)
STOCKHOLDERS' EQUITY:
Common stock 244 239 2.1
Additional paid-in capital 273,112 265,645 2.8
Retained earnings 357,008 318,931 11.9
Accumulated other comprehensive
loss (218) (173) 26.0
Deferred stock-based compensation (3,625) - N/A
Treasury stock - (17,468) (100.0)
----------- ---------- ---------
Total stockholders' equity 626,521 567,174 10.5
----------- ---------- ---------
Total liabilities and
stockholders' equity $ 1,725,740 $1,947,220 (11.4)%
=========== ========== =========
BALANCE SHEET DATA:
Working capital $ 121,614 $ 155,453 (21.8)%
Current ratio 1.14 1.15 (0.9)
Long-term debt to capitalization 20% 30%
Inventory days supply: (1)
New vehicle 57 70 (18.6)%
Used vehicle 28 29 (3.4)
(1) Inventory days supply equals units in inventory as of the end of
the period, divided by unit sales for the month then ended, times
30 days.
Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
Three Months Nine Months
Ended Ended
September 30, September 30,
--------------- ---------------
2005 2004 2005 2004
------- ------- ------- -------
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
Platform State(s)
------------------------------------
Ira Motor Group Massachusetts 14.4 % 13.1 % 13.5 % 13.1 %
Houston Metro Platform Texas 14.1 13.7 14.5 14.5
Bob Howard Auto Group Oklahoma 12.2 11.8 11.9 12.4
Miller Automotive
Group California 12.3 12.9 12.9 11.9
Maxwell Automotive Texas
Group 7.7 7.9 7.6 8.0
West Central Platform TX, CO, NM 8.8 9.9 9.3 10.5
Group 1 Florida Florida 6.4 5.5 6.1 6.2
Bohn Automotive Group Louisiana 4.4 6.1 5.2 6.7
Peterson Automotive California
Group 4.5 5.3 4.3 2.6
Group 1 Atlanta Georgia 5.3 4.7 4.9 5.3
Courtesy Auto Group Texas 4.9 5.0 4.6 5.5
David Michael Motor New Jersey
Group 2.9 2.7 2.8 2.8
Hassel Auto Group New York 2.1 1.4 2.4 0.5
------- ------- ------- -------
100.0 % 100.0 % 100.0 % 100.0 %
NEW VEHICLE UNIT SALES BRAND MIX:
Toyota/Scion/Lexus 28.6 % 27.7 % 28.6 % 27.5 %
Ford 19.6 19.7 18.8 21.1
DaimlerChrysler 15.6 14.4 15.0 13.9
Nissan/Infiniti 10.7 10.8 11.2 10.7
GM 8.9 10.9 10.1 11.0
Honda/Acura 9.7 8.8 9.4 9.8
Other 6.9 7.7 6.9 6.0
------- ------- ------- -------
100.0 % 100.0 % 100.0 % 100.0 %
NEW VEHICLE UNIT OTHER
MIX:
Domestic 39.2 % 40.0 % 38.5 % 41.9 %
Import 45.8 46.2 46.1 45.4
Luxury 15.0 13.8 15.4 12.7
------- ------- ------- -------
100.0 % 100.0 % 100.0 % 100.0 %
Car 46.3 % 43.1 % 45.8 % 42.5 %
Truck 53.7 56.9 54.2 57.5
------- ------- ------- -------
100.0 % 100.0 % 100.0 % 100.0 %
Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended September 30,
-----------------------------------
2005 2004 % Change
----------- ----------- ---------
REVENUES:
New vehicle retail sales $ 977,492 $ 962,021 1.6 %
Used vehicle retail sales 279,484 265,544 5.2
Used vehicle wholesale sales 98,439 101,551 (3.1)
----------- ----------- ---------
Total used 377,923 367,095 2.9
Parts and service 165,017 154,285 7.0
Finance and insurance 49,737 49,006 1.5
----------- ----------- ---------
Total $1,570,169 $1,532,407 2.5 %
GROSS MARGIN:
New vehicle retail sales 7.1 % 6.9 %
Used vehicle retail sales 12.8 12.3
Used vehicle wholesale sales (1.8) (2.5)
----------- -----------
Total used 9.0 8.2
Parts and service 54.4 54.6
Finance and insurance 100.0 100.0
----------- -----------
Total 15.5 % 15.0 %
GROSS PROFIT (LOSS):
New vehicle retail sales $ 69,761 $ 66,387 5.1 %
Used vehicle retail sales 35,728 32,765 9.0
Used vehicle wholesale sales (1,809) (2,581) 29.9
----------- ----------- ---------
Total used 33,919 30,184 12.4
Parts and service 89,701 84,307 6.4
Finance and insurance 49,737 49,006 1.5
----------- ----------- ---------
Total $ 243,118 $ 229,884 5.8 %
UNITS SOLD:
Retail new vehicles sold 34,355 33,991 1.1 %
Retail used vehicles sold 17,826 17,707 0.7
Wholesale used vehicles sold 13,832 13,831 0.0
----------- ----------- ---------
Total used 31,658 31,538 0.4 %
GROSS PROFIT (LOSS) PER UNIT SOLD:
New vehicle retail sales $ 2,031 $ 1,953 4.0 %
Used vehicle retail sales 2,004 1,850 8.3
Used vehicle wholesale sales (131) (187) 29.9
Total used 1,071 957 11.9
Finance and insurance (per
retail unit) 953 948 0.5
OTHER:
Adjusted used gross
margin(1) 12.1 % 11.4 %
Adjusted used gross profit
per retail unit(2) $ 1,903 $ 1,705 11.6 %
SG&A expenses $ 186,216 $ 182,682 1.9 %
SG&A as % revenues 11.9 % 11.9 %
SG&A as % gross profit 76.6 % 79.5 %
Operating margin 3.0 % 0.1 %
Pretax income margin 2.2 % (0.6)%
Floorplan interest $ (9,259) $ (6,813) 35.9 %
Floorplan assistance 9,691 9,499 2.0
----------- ----------- ---------
Net floorplan benefit
(expense) $ 432 $ 2,686 (83.9) %
Nine Months Ended September 30,
--------------------------------------
2005 2004 % Change
----------- ----------- ---------
REVENUES:
New vehicle retail sales $2,791,812 $2,451,916 13.9 %
Used vehicle retail sales 819,816 737,541 11.2
Used vehicle wholesale sales 301,419 264,848 13.8
----------- ----------- ---------
Total used 1,121,235 1,002,389 11.9
Parts and service 487,534 409,588 19.0
Finance and insurance 143,648 130,442 10.1
----------- ----------- ---------
Total $4,544,229 $3,994,335 13.8 %
GROSS MARGIN:
New vehicle retail sales 7.1 % 7.0 %
Used vehicle retail sales 12.7 12.3
Used vehicle wholesale sales (0.8) (2.0)
----------- -----------
Total used 9.1 8.5
Parts and service 54.4 54.8
Finance and insurance 100.0 100.0
----------- -----------
Total 15.6 % 15.3 %
GROSS PROFIT (LOSS):
New vehicle retail sales $ 197,433 $ 171,679 15.0 %
Used vehicle retail sales 103,838 90,523 14.7
Used vehicle wholesale sales (2,283) (5,178) 55.9
----------- ----------- ---------
Total used 101,555 85,345 19.0
Parts and service 265,061 224,356 18.1
Finance and insurance 143,648 130,442 10.1
----------- ----------- ---------
Total $ 707,697 $ 611,822 15.7 %
UNITS SOLD:
Retail new vehicles sold 96,909 87,864 10.3 %
Retail used vehicles sold 52,509 50,318 4.4
Wholesale used vehicles sold 39,520 36,515 8.2
----------- ----------- ---------
Total used 92,029 86,833 6.0 %
GROSS PROFIT (LOSS) PER UNIT SOLD:
New vehicle retail sales $ 2,037 $ 1,954 4.2 %
Used vehicle retail sales 1,978 1,799 9.9
Used vehicle wholesale sales (58) (142) 59.2
Total used 1,104 983 12.3
Finance and insurance (per
retail unit) 961 944 1.8
OTHER:
Adjusted used gross
margin(1) 12.4 % 11.6 %
Adjusted used gross profit
per retail unit(2) $ 1,934 $ 1,696 14.0 %
SG&A expenses $ 560,853 $ 489,309 14.6 %
SG&A as % revenues 12.3 % 12.3 %
SG&A as % gross profit 79.3 % 80.0 %
Operating margin 2.8 % 1.7 %
Pretax income margin 1.9 % 0.8 %
Floorplan interest $ (27,998) $ (17,660) 58.5 %
Floorplan assistance 27,527 24,457 12.6
----------- ----------- ---------
Net floorplan benefit
(expense) $ (471) $ 6,797 (106.9) %
(1) Adjusted used gross margin equals total used vehicle gross profit,
which includes net wholesale loss, divided by used vehicle retail
sales revenues. The profit or loss on wholesale sales is included
in this number, as these transactions facilitate retail vehicle
sales and are not expected to generate profit.
(2) Adjusted used gross profit per retail unit equals total used
vehicle gross profit, which includes net wholesale loss, divided
by retail used vehicle unit sales. The profit or loss on wholesale
sales is included in this number, as these transactions facilitate
retail vehicle sales and are not expected to generate profit.
Group 1 Automotive, Inc.
Additional Information - Same Store(1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended September 30,
2005
------------------------------------
Same Store New Same Store
Orleans excluding
New Orleans
------------------------------------
REVENUES:
New vehicle retail
sales $ 952,583 $40,559 $ 912,024
Used vehicle retail
sales 272,865 9,329 263,536
Used vehicle
wholesale sales 96,783 3,661 93,122
----------- -------- ------------
Total used 369,648 12,990 356,658
Parts and service 161,667 4,780 156,887
Finance and
insurance 49,272 2,119 47,153
----------- -------- ------------
Total $1,533,170 $60,448 $1,472,722
GROSS MARGIN:
New vehicle retail
sales 7.1 % 5.8 % 7.2 %
Used vehicle retail
sales 12.8 13.8 12.8
Used vehicle
wholesale sales (1.8) (0.2) (1.9)
----------- -------- ------------
Total used 9.0 9.9 9.0
Parts and service 54.3 55.5 54.3
Finance and
insurance 100.0 100.0 100.0
----------- -------- ------------
Total 15.5 % 13.9 % 15.6 %
GROSS PROFIT (LOSS):
New vehicle retail
sales $ 67,725 $ 2,336 $ 65,389
Used vehicle retail
sales 35,063 1,290 33,773
Used vehicle
wholesale sales (1,759) (8) (1,751)
----------- -------- ------------
Total used 33,304 1,282 32,022
Parts and service 87,778 2,652 85,126
Finance and
insurance 49,272 2,119 47,153
----------- -------- ------------
Total $ 238,079 $ 8,389 $ 229,690
UNITS SOLD:
Retail new vehicles
sold 33,643 1,492 32,151
Retail used vehicles
sold 17,490 686 16,804
Wholesale used
vehicles sold 13,625 647 12,978
----------- -------- ------------
Total used 31,115 1,333 29,782
GROSS PROFIT (LOSS) PER UNIT SOLD:
New vehicle retail
sales $ 2,013 $ 1,566 $ 2,034
Used vehicle retail
sales 2,005 1,880 2,010
Used vehicle
wholesale sales (129) (12) (135)
Total
used 1,070 962 1,075
Finance and
insurance (per
retail unit) 964 973 963
OTHER:
Adjusted used gross
margin(2) 12.2 % 13.7 % 12.2 %
Adjusted used gross
profit per retail
unit(3) $ 1,904 $ 1,869 $ 1,906
SG&A expenses $ 182,346 $10,905 $ 171,441
SG&A as % revenues 11.9 % 18.0 % 11.6 %
SG&A as % gross
profit 76.6 % 130.0 % 74.6 %
Operating margin 3.0 % (6.8) % 3.4 %
Floorplan interest $ (9,010) $ (603) $ (8,407)
Floorplan assistance 9,622 416 9,206
----------- -------- ------------
Net floorplan
benefit (expense) $ 612 $ (187) $ 799
Three Months Ended September 30,
2004
------------------------------------
Same Store New Same Store
Orleans excluding
New Orleans
------------------------------------
REVENUES:
New vehicle retail
sales $ 962,021 $54,875 $ 907,146
Used vehicle retail
sales 265,544 13,545 251,999
Used vehicle
wholesale sales 101,551 4,780 96,771
----------- -------- ------------
Total used 367,095 18,325 348,770
Parts and service 154,285 7,141 147,144
Finance and
insurance 49,006 2,768 46,238
----------- -------- ------------
Total $1,532,407 $83,109 $1,449,298
GROSS MARGIN:
New vehicle retail
sales 6.9 % 4.8 % 7.0
Used vehicle retail
sales 12.3 12.8 12.3
Used vehicle
wholesale sales (2.5) (3.4) (2.5)
----------- -------- ------------
Total used 8.2 8.6 8.2
Parts and service 54.6 59.5 54.4
Finance and
insurance 100.0 100.0 100.0
----------- -------- ------------
Total 15.0 % 13.5 % 15.1
GROSS PROFIT (LOSS):
New vehicle retail
sales $ 66,387 $ 2,618 $ 63,769
Used vehicle retail
sales 32,765 1,734 31,031
Used vehicle
wholesale sales (2,581) (162) (2,419)
----------- -------- ------------
Total used 30,184 1,572 28,612
Parts and service 84,307 4,252 80,055
Finance and
insurance 49,006 2,768 46,238
----------- -------- ------------
Total $ 229,884 $11,210 $ 218,674
UNITS SOLD:
Retail new vehicles
sold 33,991 2,058 31,933
Retail used vehicles
sold 17,707 1,002 16,705
Wholesale used
vehicles sold 13,831 900 12,931
----------- -------- ------------
Total used 31,538 1,902 29,636
GROSS PROFIT (LOSS) PER
UNIT SOLD:
New vehicle retail
sales $ 1,953 $ 1,272 $ 1,997
Used vehicle retail
sales 1,850 1,731 1,858
Used vehicle
wholesale sales (187) (180) (187)
Total
used 957 826 965
Finance and
insurance (per
retail unit) 948 905 951
OTHER:
Adjusted used gross
margin(2) 11.4 % 11.6 % 11.4
Adjusted used gross
profit per retail
unit(3) $ 1,705 $ 1,569 $ 1,713
SG&A expenses $ 182,682 $ 8,923 $ 173,759
SG&A as % revenues 11.9 % 10.7 % 12.0
SG&A as % gross
profit 79.5 % 79.6 % 79.5
Operating margin 0.1 % 2.4 % 0.0
Floorplan interest $ (6,813) $ (379) $ (6,434)
Floorplan assistance 9,499 567 8,932
----------- -------- ------------
Net floorplan
benefit (expense) $ 2,686 $ 188 $ 2,498
Percentage Change
----------------------------
Same New Same Store
Store Orleans excluding
New
Orleans
----------------------------
REVENUES:
New vehicle retail
sales (1.0) % (26.1) % 0.5 %
Used vehicle retail
sales 2.8 (31.1) 4.6
Used vehicle
wholesale sales (4.7) (23.4) (3.8)
-------- -------- ----------
Total used 0.7 (29.1) 2.3
Parts and service 4.8 (33.1) 6.6
Finance and
insurance 0.5 (23.4) 2.0
-------- -------- ----------
Total 0.0 % (27.3) % 1.6 %
GROSS MARGIN:
New vehicle retail
sales
Used vehicle retail
sales
Used vehicle
wholesale sales
Total used
Parts and service
Finance and
insurance
Total
GROSS PROFIT (LOSS):
New vehicle retail
sales 2.0 % (10.8) % 2.5 %
Used vehicle retail
sales 7.0 (25.6) 8.8
Used vehicle
wholesale sales (31.8) (95.1) (27.6)
-------- -------- ----------
Total used 10.3 (18.4) 11.9
Parts and service 4.1 (37.6) 6.3
Finance and
insurance 0.5 (23.4) 2.0
-------- -------- ----------
Total 3.6 % (25.2) % 5.0 %
UNITS SOLD:
Retail new vehicles
sold (1.0) % (27.5) % 0.7 %
Retail used vehicles
sold (1.2) (31.5) 0.6
Wholesale used
vehicles sold (1.5) (28.1) 0.4
-------- -------- ----------
Total used (1.3) % (29.9) % 0.5 %
GROSS PROFIT (LOSS) PER
UNIT SOLD:
New vehicle retail
sales 3.1 % 23.1 % 1.9 %
Used vehicle retail
sales 8.4 8.6 8.2
Used vehicle
wholesale sales (31.0) (93.3) (27.8)
Total
used 11.8 16.5 11.4
Finance and
insurance (per
retail unit) 1.7 7.5 1.3
OTHER:
Adjusted used gross
margin(2)
Adjusted used gross
profit per retail
unit(3) 11.7 % 19.1 % 11.3 %
SG&A expenses (0.2) % 22.2 % (1.3) %
SG&A as % revenues
SG&A as % gross
profit
Operating margin
Floorplan interest 32.2 % 59.1 % 30.7 %
Floorplan assistance 1.3 (26.6) 3.1
-------- -------- ----------
Net floorplan
benefit (expense) (77.2) %(199.5) %(68.0) %
(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.
(2) Adjusted used gross margin equals total used vehicle gross profit,
which includes net wholesale loss, divided by used vehicle retail
sales revenues. The profit or loss on wholesale sales is included
in this number, as these transactions facilitate retail vehicle
sales and are not expected to generate profit.
(3) Adjusted used gross profit per retail unit equals total used
vehicle gross profit, which includes net wholesale loss, divided
by retail used vehicle unit sales. The profit or loss on wholesale
sales is included in this number, as these transactions facilitate
retail vehicle sales and are not expected to generate profit.
Group 1 Automotive, Inc.
Additional Information - Same Store(1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Nine Months Ended September 30, 2005
------------------------------------
Same Store New Orleans Same Store
excluding
New Orleans
-------------------------------------
REVENUES:
New vehicle retail
sales $2,468,519 $131,738 $2,336,781
Used vehicle retail
sales 744,430 37,921 706,509
Used vehicle
wholesale sales 271,292 13,839 257,453
----------- --------- -----------
Total used 1,015,722 51,760 963,962
Parts and service 428,878 18,392 410,486
Finance and
insurance 133,500 7,385 126,115
----------- --------- -----------
Total $4,046,619 $209,275 $3,837,344
GROSS MARGIN:
New vehicle retail
sales 7.0 % 5.7 % 7.1 %
Used vehicle retail
sales 12.8 13.1 12.8
Used vehicle
wholesale sales (0.8) (0.4) (0.9)
----------- --------- -----------
Total used 9.1 9.5 9.1
Parts and service 54.3 56.3 54.2
Finance and
insurance 100.0 100.0 100.0
----------- --------- -----------
Total 15.6 % 14.4 % 15.7 %
GROSS PROFIT (LOSS):
New vehicle retail
sales $ 172,892 $ 7,468 $ 165,424
Used vehicle retail
sales 95,104 4,958 90,146
Used vehicle
wholesale sales (2,290) (62) (2,228)
----------- --------- -----------
Total used 92,814 4,896 87,918
Parts and service 232,749 10,357 222,392
Finance and
insurance 133,500 7,385 126,115
----------- --------- -----------
Total $ 631,955 $ 30,106 $ 601,849
UNITS SOLD:
Retail new vehicles
sold 87,671 4,966 82,705
Retail used vehicles
sold 48,688 2,812 45,876
Wholesale used
vehicles sold 36,503 2,342 34,161
----------- --------- -----------
Total used 85,191 5,154 80,037
GROSS PROFIT (LOSS) PER UNIT SOLD:
New vehicle retail
sales $ 1,972 $ 1,504 $ 2,000
Used vehicle retail
sales 1,953 1,763 1,965
Used vehicle
wholesale sales (63) (26) (65)
Total
used 1,089 950 1,098
Finance and
insurance (per
retail unit) 979 949 981
OTHER:
Adjusted used gross
margin(2) 12.5 % 12.9 % 12.4 %
Adjusted used gross
profit per retail
unit(3) $ 1,906 $ 1,741 $ 1,916
SG&A expenses $ 499,708 $ 28,946 $ 470,762
SG&A as % revenues 12.3 % 13.8 % 12.3 %
SG&A as % gross
profit 79.1 % 96.1 % 78.2 %
Operating margin 2.8 % (0.5) % 3.0 %
Floorplan interest $ (25,007) $ (1,782) $ (23,225)
Floorplan assistance 25,956 1,480 24,476
----------- --------- -----------
Net floorplan
benefit (expense) $ 949 $ (302) $ 1,251
Nine Months Ended September 30, 2004
---------------------------------------
Same Store New Orleans Same Store
excluding New
Orleans
------------ ---------------------------
REVENUES:
New vehicle retail
sales $2,451,916 $ 154,593 $ 2,297,323
Used vehicle retail
sales 737,541 42,085 695,456
Used vehicle
wholesale sales 264,848 13,653 251,195
----------- ----------- ------------
Total used 1,002,389 55,738 946,651
Parts and service 409,588 20,542 389,046
Finance and
insurance 130,442 7,869 122,573
----------- ----------- ------------
Total $3,994,335 $ 238,742 $ 3,755,593
GROSS MARGIN:
New vehicle retail
sales 7.0 % 5.1 % 7.1 %
Used vehicle retail
sales 12.3 11.7 12.3
Used vehicle
wholesale sales (2.0) (3.1) (1.9)
----------- ----------- ------------
Total used 8.5 8.1 8.5
Parts and service 54.8 59.5 54.5
Finance and
insurance 100.0 100.0 100.0
----------- ----------- ------------
Total 15.3 % 13.6 % 15.4 %
GROSS PROFIT (LOSS):
New vehicle retail
sales $ 171,679 $ 7,866 $ 163,813
Used vehicle retail
sales 90,523 4,934 85,589
Used vehicle
wholesale sales (5,178) (421) (4,757)
----------- ----------- ------------
Total used 85,345 4,513 80,832
Parts and service 224,356 12,215 212,141
Finance and
insurance 130,442 7,869 122,573
----------- ----------- ------------
Total $ 611,822 $ 32,463 $ 579,359
UNITS SOLD:
Retail new vehicles
sold 87,864 5,843 82,021
Retail used vehicles
sold 50,318 3,116 47,202
Wholesale used
vehicles sold 36,515 2,527 33,988
----------- ----------- ------------
Total used 86,833 5,643 81,190
GROSS PROFIT (LOSS) PER
UNIT SOLD:
New vehicle retail
sales $ 1,954 $ 1,346 $ 1,997
Used vehicle retail
sales 1,799 1,583 1,813
Used vehicle
wholesale sales (142) (167) (140)
Total
used 983 800 996
Finance and
insurance (per
retail unit) 944 878 949
OTHER:
Adjusted used gross
margin(2) 11.6 % 10.7 % 11.6 %
Adjusted used gross
profit per retail
unit(3) $ 1,696 $ 1,448 $ 1,712
SG&A expenses $ 489,309 $ 26,216 $ 463,093
SG&A as % revenues 12.3 % 11.0 % 12.3 %
SG&A as % gross
profit 80.0 % 80.8 % 79.9 %
Operating margin 1.7 % 2.3 % 1.7 %
Floorplan interest $ (17,660) $ (1,106) $ (16,554)
Floorplan assistance 24,457 1,582 22,875
----------- ----------- ------------
Net floorplan
benefit (expense) $ 6,797 $ 476 $ 6,321
Percentage Change
---------------------------------
Same Store New Same Store
Orleans excluding
New
Orleans
---------------------------------
REVENUES:
New vehicle retail
sales 0.7 % (14.8) % 1.7 %
Used vehicle retail
sales 0.9 (9.9) 1.6
Used vehicle
wholesale sales 2.4 1.4 2.5
------------- -------- ----------
Total used 1.3 (7.1) 1.8
Parts and service 4.7 (10.5) 5.5
Finance and
insurance 2.3 (6.2) 2.9
------------- -------- ----------
Total 1.3 % (12.3) % 2.2 %
GROSS MARGIN:
New vehicle retail
sales
Used vehicle retail
sales
Used vehicle
wholesale sales
Total used
Parts and service
Finance and
insurance
Total
GROSS PROFIT (LOSS):
New vehicle retail
sales 0.7 % (5.1) % 1.0 %
Used vehicle retail
sales 5.1 0.5 5.3
Used vehicle
wholesale sales (55.8) (85.3) (53.2)
------------- -------- ----------
Total used 8.8 8.5 8.8
Parts and service 3.7 (15.2) 4.8
Finance and
insurance 2.3 (6.2) 2.9
------------- -------- ----------
Total 3.3 % (7.3) % 3.9 %
UNITS SOLD:
Retail new vehicles
sold (0.2) % (15.0) % 0.8 %
Retail used vehicles
sold (3.2) (9.8) (2.8)
Wholesale used
vehicles sold (0.0) (7.3) 0.5
------------- -------- ----------
Total used (1.9) % (8.7) % (1.4) %
GROSS PROFIT (LOSS) PER
UNIT SOLD:
New vehicle retail
sales 0.9 % 11.7 % 0.2 %
Used vehicle retail
sales 8.6 11.4 8.4
Used vehicle
wholesale sales (55.6) (84.4) (53.6)
Total
used 10.8 18.8 10.2
Finance and
insurance (per
retail unit) 3.7 8.1 3.4
OTHER:
Adjusted used gross
margin(2)
Adjusted used gross
profit per retail
unit(3) 12.4 % 20.2 % 11.9 %
SG&A expenses 2.1 % 10.4 % 1.7 %
SG&A as % revenues
SG&A as % gross
profit
Operating margin
Floorplan interest 41.6 % 61.1 % 40.3 %
Floorplan assistance 6.1 (6.4) 7.0
------------- -------- ----------
Net floorplan
benefit (expense) (86.0) %(163.4) %(80.2) %
(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.
(2) Adjusted used gross margin equals total used vehicle gross profit,
which includes net wholesale loss, divided by used vehicle retail
sales revenues. The profit or loss on wholesale sales is included
in this number, as these transactions facilitate retail
(3) Adjusted used gross profit per retail unit equals total used
vehicle gross profit, which includes net wholesale loss, divided
by retail used vehicle unit sales. The profit or loss on wholesale
sales is included in this number, as these transactions facilitate
retail vehicle sales and are not expected to generate profit.