Group 1 Automotive Reports 44 Percent Rise in Fourth-Quarter Earnings
HOUSTON--Feb. 23, 2006--Group 1 Automotive, Inc. , a Fortune 500 automotive retailer, today reported that 2005 fourth-quarter net income rose 44 percent over the comparable period of 2004 to $16.2 million. Earnings per diluted share increased 40 percent to $0.66.The company also announced that its board of directors declared its first cash dividend of $0.13 per share for the fourth quarter of 2005. The dividend will be paid on March 15, 2006, to stockholders of record on March 6.
Although total revenues for the quarter represented a 1 percent decrease from the prior year to $1.4 billion, a 50 basis-point improvement in total gross margin had a major impact on overall results. The margin improvement was driven by a 70 basis-point increase in used vehicle retail margins, a significant decrease in used vehicle wholesale losses and a 3.9 percent growth in parts and service sales. Additionally, the company realized for the fourth quarter a 280 basis-point reduction in total selling, general and administrative (SG&A) expenses to 80.4 percent of gross profit. Finally, results were positively impacted by adjustments to deferred tax items for certain assets and liabilities of $0.08 per diluted share, offset by asset impairment charges of $0.07 per diluted share.
"Despite lower domestic-brand new vehicle sales during the fourth quarter, our company was able to realize meaningful improvements in our overall profit performance," said Earl J. Hesterberg, Group 1's president and chief executive officer. "This improvement was made possible by strong performances in our used vehicle and parts and service businesses, two key areas of strategic focus. We were able to increase revenues in both areas, and I was particularly pleased with our dramatic improvement in managing our used vehicle inventory."
Full-Year Results
For the year ended Dec. 3, 20051, 2005, income before cumulative effect of a change in accounting principle for the year was $70.3 million, or $2.90 per diluted share, compared with $27.8 million, or $1.18 per diluted share, in 2004. The 2005 results include the previously-noted favorable tax adjustments, asset impairments during the year and the net impact of Hurricanes Katrina and Rita on the company's third- and fourth-quarter results.
Total revenues increased 9.8 percent to $6.0 billion, highlighted by a parts and service revenue increase of 14.9 percent. New vehicle revenues increased 9.7 percent, used vehicle revenues were up 8.8 percent, and finance and insurance revenues improved 7.6 percent over the prior year. On a same store basis, revenues were up 0.5 percent from 2004, with a 100 basis-point increase in same store operating margin to 2.8 percent.
In February 2006, the company disposed of three franchises with 2005 revenues of $27.5 million. Additionally, Group 1 confirmed that it expects to acquire at least $300 million in estimated annual revenues in 2006.
Hesterberg noted that, "Our 2005 results demonstrate that we are making progress in our efforts to improve our profitability and return to shareholders. Despite our corporate restructuring, some key personnel changes and weak domestic-brand vehicle sales in the fourth quarter of 2005, we were able to turn in a very respectable profit performance. This is a testimony to the quality of our management team from Houston all the way through the individual dealership level. Additionally, our brand mix continues to strengthen with 66 percent of our revenue in the fourth quarter derived from luxury and import brands. I believe Group 1 Automotive has a very bright future due to our strong brands, experienced people and strong balance sheet. Our confidence in the company is reflected in the dividend that we announced today. This is just a small signal to confirm our intention to continue to enhance overall shareholder value while growing our company in a responsible and profitable manner."
Group 1 provided 2006 full-year earnings guidance of $3.15 to $3.45 per diluted share based on assumptions of relatively flat industry sales, a 50 basis-point increase in interest rates and an estimated average of 24.5 million shares outstanding. Guidance includes the implementation of SFAS No. 123(R), "Share Based Payment," that the company estimates will have a negative earnings impact of $0.10 per diluted share, and excludes the impacts of any future acquisitions or dispositions. This guidance is consistent with the company's previously announced target of at least 15 percent annual earnings-per-share growth over the next three to five years.
About Group 1 Automotive, Inc.
Group 1 owns 95 automotive dealerships comprised of 139 franchises, 31 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, 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.
FINANCIAL TABLES TO FOLLOW
Group 1 Automotive, Inc.
Consolidated Statements of Operations
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended December 31,
----------------------------------
2005 2004 % Change
----------- ----------- ---------
REVENUES:
New vehicle retail sales $ 883,068 $ 896,959 (1.5)%
Used vehicle retail sales 255,790 251,256 1.8
Used vehicle wholesale sales 82,437 94,399 (12.7)
Parts and service 161,687 155,625 3.9
Finance and insurance 42,379 42,459 (0.2)
----------- ----------- ---------
Total revenues 1,425,361 1,440,698 (1.1)%
COST OF SALES:
New vehicle retail sales 819,134 831,903 (1.5)%
Used vehicle retail sales 223,458 221,333 1.0
Used vehicle wholesale sales 84,132 97,487 (13.7)
Parts and service 73,928 70,031 5.6
----------- ----------- ---------
Total cost of sales 1,200,652 1,220,754 (1.6)%
GROSS PROFIT 224,709 219,944 2.2 %
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 180,618 182,901 (1.2)%
DEPRECIATION AND AMORTIZATION
EXPENSE 4,405 4,596 (4.2)%
ASSET IMPAIRMENTS 2,620 3,338 (21.5)%
----------- ----------- ---------
INCOME FROM OPERATIONS 37,066 29,109 27.3 %
OTHER INCOME (EXPENSE):
Floorplan interest expense (9,999) (7,688) 30.1 %
Other interest expense, net (3,948) (5,672) (30.4)
Loss on redemption of senior
subordinated notes - - -
Other income (expense), net 30 35 (14.3)
----------- ----------- ---------
INCOME BEFORE INCOME TAXES 23,149 15,784 46.7 %
PROVISION FOR INCOME TAXES 6,995 4,589 52.4 %
----------- ----------- ---------
INCOME BEFORE CUMULATIVE EFFECT OF
A CHANGE IN ACCOUNTING PRINCIPLE 16,154 11,195 44.3 %
CUMULATIVE EFFECT OF A CHANGE IN
ACCOUNTING PRINCIPLE, NET OF TAX
BENEFIT OF $10,231 - - -
----------- ----------- ---------
NET INCOME $ 16,154 $ 11,195 44.3 %
=========== =========== =========
DILUTED EARNINGS PER SHARE:
Income before cumulative effect of
a change in accounting principle $ 0.66 $ 0.47 40.4 %
Cumulative effect of a change in
accounting principle - - -
----------- ----------- ---------
Net income $ 0.66 $ 0.47 40.4 %
=========== =========== =========
Weighted average diluted shares
outstanding 24,465,479 23,693,037 3.3 %
Twelve Months Ended December 31,
----------------------------------
2005 2004 % Change
----------- ----------- ---------
REVENUES:
New vehicle retail sales $ 3,674,880 $ 3,348,875 9.7 %
Used vehicle retail sales 1,075,606 988,797 8.8
Used vehicle wholesale sales 383,856 359,247 6.9
Parts and service 649,221 565,213 14.9
Finance and insurance 186,027 172,901 7.6
----------- ----------- ---------
Total revenues 5,969,590 5,435,033 9.8 %
COST OF SALES:
New vehicle retail sales 3,413,513 3,112,140 9.7 %
Used vehicle retail sales 939,436 868,351 8.2
Used vehicle wholesale sales 387,834 367,513 5.5
Parts and service 296,401 255,263 16.1
----------- ----------- ---------
Total cost of sales 5,037,184 4,603,267 9.4 %
GROSS PROFIT 932,406 831,766 12.1 %
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 741,471 672,210 10.3 %
DEPRECIATION AND AMORTIZATION
EXPENSE 18,927 15,836 19.5 %
ASSET IMPAIRMENTS 7,607 44,711 (83.0)%
----------- ----------- ---------
INCOME FROM OPERATIONS 164,401 99,009 66.0 %
OTHER INCOME (EXPENSE):
Floorplan interest expense (37,997) (25,349) 49.9 %
Other interest expense, net (18,122) (19,299) (6.1)
Loss on redemption of senior
subordinated notes - (6,381) (100.0)
Other income (expense), net 125 (28) (546.4)
----------- ----------- ---------
INCOME BEFORE INCOME TAXES 108,407 47,952 126.1 %
PROVISION FOR INCOME TAXES 38,138 20,171 89.1 %
----------- ----------- ---------
INCOME BEFORE CUMULATIVE EFFECT OF
A CHANGE IN ACCOUNTING PRINCIPLE 70,269 27,781 152.9 %
CUMULATIVE EFFECT OF A CHANGE IN
ACCOUNTING PRINCIPLE, NET OF TAX
BENEFIT OF $10,231 (16,038) - N/A
----------- ----------- ---------
NET INCOME $ 54,231 $ 27,781 95.2 %
=========== =========== =========
DILUTED EARNINGS PER SHARE:
Income before cumulative effect of
a change in accounting principle $ 2.90 $ 1.18 145.8 %
Cumulative effect of a change in
accounting principle (0.66) - -
----------- ----------- ---------
Net income $ 2.24 $ 1.18 89.8 %
=========== =========== =========
Weighted average diluted shares
outstanding 24,229,208 23,493,899 3.1 %
Group 1 Automotive, Inc.
Consolidated Balance Sheets
(Unaudited)
(Dollars in thousands)
December 31, December 31,
2005 2004 % Change
------------ ------------ ---------
ASSETS:
CURRENT ASSETS:
Cash and cash equivalents $ 37,695 $ 37,750 (0.1)%
Contracts in transit and
vehicle receivables, net 187,769 172,402 8.9
Accounts and notes receivable,
net 81,463 76,687 6.2
Inventories 756,838 877,575 (13.8)
Deferred income taxes 18,780 14,755 27.3
Prepaid expenses and other
current assets 23,283 26,046 (10.6)
----------- ----------- ---------
Total current assets 1,105,828 1,205,215 (8.2)
PROPERTY AND EQUIPMENT, net 161,317 160,297 0.6
GOODWILL 372,844 366,673 1.7
INTANGIBLE FRANCHISE RIGHTS 164,210 187,135 (12.3)
OTHER ASSETS 29,419 27,900 5.4
----------- ----------- ---------
Total assets $ 1,833,618 $ 1,947,220 (5.8)%
=========== =========== =========
LIABILITIES AND STOCKHOLDERS'
EQUITY:
CURRENT LIABILITIES:
Floorplan notes payable --
credit facility $ 407,396 $ 632,593 (35.6)%
Floorplan notes payable --
manufacturer affiliates 316,189 215,667 46.6
Current maturities of long-term
debt 786 1,054 (25.4)
Accounts payable 124,857 108,920 14.6
Accrued expenses 119,404 91,528 30.5
----------- ----------- ---------
Total current liabilities 968,632 1,049,762 (7.7)
LONG-TERM DEBT, net of current
maturities 158,074 156,747 0.8
ACQUISITION LINE - 84,000 (100.0)
DEFERRED INCOME TAXES 28,862 33,197 (13.1)
OTHER LIABILITIES 25,356 24,288 4.4
----------- ----------- ---------
Total liabilities before
deferred revenues 1,180,924 1,347,994 (12.4)
----------- ----------- ---------
DEFERRED REVENUES 25,901 32,052 (19.2)
STOCKHOLDERS' EQUITY:
Common stock 246 239 2.9
Additional paid-in capital 276,904 265,645 4.2
Retained earnings 373,162 318,931 17.0
Accumulated other comprehensive
loss (706) (173) 308.1
Deferred stock-based
compensation (5,413) - N/A
Treasury stock (17,400) (17,468) (0.4)
----------- ----------- ---------
Total stockholders'
equity 626,793 567,174 10.5
----------- ----------- ---------
Total liabilities and
stockholders' equity $ 1,833,618 $ 1,947,220 (5.8)%
=========== =========== =========
BALANCE SHEET DATA:
Working capital $ 137,196 $ 155,453 (11.7)%
Current ratio 1.14 1.15 (0.9)
Long-term debt to
capitalization 20% 30%
Inventory days supply:(1)
New vehicle 56 70 (20.0)%
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 Twelve Months
Ended Ended
December 31, December 31,
----------------- ----------------
2005 2004 2005 2004
--------- ------- -------- -------
NEW VEHICLE UNIT SALES GEOGRAPHIC
MIX:
Region State(s)
------ --------
Northeast Massachusetts 12.3 % 12.2 % 13.0 % 12.8 %
New Hampshire 0.6 - 0.3 -
New Jersey 3.1 3.0 2.9 2.9
New York 2.5 2.6 2.3 1.1
-------- ------ ------- ------
18.5 17.8 18.5 16.8
Southeast Florida 5.2 6.0 5.9 6.1
Georgia 4.2 4.6 4.8 5.1
Louisiana 8.1 5.6 5.8 6.4
-------- ------ ------- ------
17.5 16.2 16.5 17.6
South Central Oklahoma 10.1 10.7 11.5 12.0
Central Texas 11.3 12.3 12.1 13.2
Southeast
Texas 18.5 15.4 15.4 14.7
-------- ------ ------- ------
39.9 38.4 39.0 39.9
West Central Colorado 0.3 1.1 0.8 1.2
New Mexico 2.1 2.6 2.6 2.8
West Texas 5.3 5.4 5.6 6.2
-------- ------ ------- ------
7.7 9.1 9.0 10.2
California California 16.4 18.5 17.0 15.5
--------- ------- -------- -------
Total 100.0 % 100.0 % 100.0 % 100.0 %
======== ====== ======= ======
NEW VEHICLE UNIT SALES BRAND MIX:
Toyota/Scion/Lexus 31.1 % 28.3 % 29.2 % 27.7 %
Ford 17.5 18.8 18.5 20.5
DaimlerChrysler 14.2 14.8 14.8 14.1
Nissan/Infiniti 10.2 11.5 10.9 10.9
GM 8.7 9.9 9.8 10.7
Honda/Acura 10.2 8.8 9.6 9.5
Other 8.1 7.9 7.2 6.6
--------- ------- -------- -------
100.0 % 100.0 % 100.0 % 100.0 %
NEW VEHICLE UNIT OTHER MIX:
Domestic 34.3 % 36.9 % 37.6 % 40.6 %
Import 46.4 45.5 46.1 45.4
Luxury 19.3 17.6 16.3 14.0
--------- ------- -------- -------
100.0 % 100.0 % 100.0 % 100.0 %
Car 46.6 % 43.7 % 46.0 % 42.8 %
Truck 53.4 56.3 54.0 57.2
--------- ------- -------- -------
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 December 31,
----------------------------------
2005 2004 % Change
----------- ----------- ---------
REVENUES:
New vehicle retail sales $ 883,068 $ 896,959 (1.5)%
Used vehicle retail sales 255,790 251,256 1.8
Used vehicle wholesale sales 82,437 94,399 (12.7)
----------- ----------- ---------
Total used 338,227 345,655 (2.1)
Parts and service 161,687 155,625 3.9
Finance and insurance 42,379 42,459 (0.2)
----------- ----------- ---------
Total $1,425,361 $1,440,698 (1.1)%
GROSS MARGIN:
New vehicle retail sales 7.2 % 7.3 %
Used vehicle retail sales 12.6 11.9
Used vehicle wholesale sales (2.1) (3.3)
----------- -----------
Total used 9.1 7.8
Parts and service 54.3 55.0
Finance and insurance 100.0 100.0
----------- -----------
Total 15.8 % 15.3 %
GROSS PROFIT (LOSS):
New vehicle retail sales $ 63,934 $ 65,056 (1.7)%
Used vehicle retail sales 32,332 29,923 8.1
Used vehicle wholesale sales (1,695) (3,088) 45.1
----------- ----------- ---------
Total used 30,637 26,835 14.2
Parts and service 87,759 85,594 2.5
Finance and insurance 42,379 42,459 (0.2)
----------- ----------- ---------
Total $ 224,709 $ 219,944 2.2 %
UNITS SOLD:
Retail new vehicles sold 29,199 30,107 (3.0)%
Retail used vehicles sold 15,777 16,018 (1.5)
Wholesale used vehicles sold 10,969 12,857 (14.7)
----------- ----------- ---------
Total used 26,746 28,875 (7.4)%
GROSS PROFIT (LOSS) PER UNIT SOLD:
New vehicle retail sales $ 2,190 $ 2,161 1.3 %
Used vehicle retail sales 2,049 1,868 9.7
Used vehicle wholesale sales (155) (240) 35.4
Total used 1,145 929 23.3
Finance and insurance (per
retail unit) 942 921 2.3
OTHER:
Adjusted used gross margin(1) 12.0 % 10.7 %
Adjusted used gross profit per
retail unit(2) $ 1,942 $ 1,675 15.9 %
SG&A expenses $ 180,618 $ 182,901 (1.2)%
SG&A as % revenues 12.7 % 12.7 %
SG&A as % gross profit 80.4 % 83.2 %
EBITDA Margin(3) 3.1 % 2.6 %
Operating margin 2.6 % 2.0 %
Pretax income margin 1.6 % 1.1 %
Floorplan interest $ (9,999) $ (7,688) 30.1 %
Floorplan assistance 8,083 8,748 (7.6)
----------- ----------- ---------
Net floorplan benefit
(expense) $ (1,916) $ 1,060 (280.8)%
Twelve Months Ended December 31,
----------------------------------
2005 2004 % Change
----------- ----------- ---------
REVENUES:
New vehicle retail sales $3,674,880 $3,348,875 9.7 %
Used vehicle retail sales 1,075,606 988,797 8.8
Used vehicle wholesale sales 383,856 359,247 6.9
----------- ----------- ---------
Total used 1,459,462 1,348,044 8.3
Parts and service 649,221 565,213 14.9
Finance and insurance 186,027 172,901 7.6
----------- ----------- ---------
Total $5,969,590 $5,435,033 9.8 %
GROSS MARGIN:
New vehicle retail sales 7.1 % 7.1 %
Used vehicle retail sales 12.7 12.2
Used vehicle wholesale sales (1.0) (2.3)
----------- -----------
Total used 9.1 8.3
Parts and service 54.3 54.8
Finance and insurance 100.0 100.0
----------- -----------
Total 15.6 % 15.3 %
GROSS PROFIT (LOSS):
New vehicle retail sales $ 261,367 $ 236,735 10.4 %
Used vehicle retail sales 136,170 120,446 13.1
Used vehicle wholesale sales (3,978) (8,266) 51.9
----------- ----------- ---------
Total used 132,192 112,180 17.8
Parts and service 352,820 309,950 13.8
Finance and insurance 186,027 172,901 7.6
----------- ----------- ---------
Total $ 932,406 $ 831,766 12.1 %
UNITS SOLD:
Retail new vehicles sold 126,108 117,971 6.9 %
Retail used vehicles sold 68,286 66,336 2.9
Wholesale used vehicles sold 50,489 49,372 2.3
----------- ----------- ---------
Total used 118,775 115,708 2.7 %
GROSS PROFIT (LOSS) PER UNIT SOLD:
New vehicle retail sales $ 2,073 $ 2,007 3.3 %
Used vehicle retail sales 1,994 1,816 9.8
Used vehicle wholesale sales (79) (167) 52.7
Total used 1,113 970 14.7
Finance and insurance (per
retail unit) 957 938 2.0
OTHER:
Adjusted used gross margin(1) 12.3 % 11.3 %
Adjusted used gross profit per
retail unit(2) $ 1,936 $ 1,691 14.5 %
SG&A expenses $ 741,471 $ 672,210 10.3 %
SG&A as % revenues 12.4 % 12.4 %
SG&A as % gross profit 79.5 % 80.8 %
EBITDA Margin(3) 3.2 % 2.8 %
Operating margin 2.8 % 1.8 %
Pretax income margin 1.8 % 0.9 %
Floorplan interest $ (37,997) $ (25,349) 49.9 %
Floorplan assistance 35,610 33,206 7.2
----------- ----------- ---------
Net floorplan benefit
(expense) $ (2,387) $ 7,857 (130.4)%
(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.
(3) Earnings before interest, taxes, depreciation, amortization, and
asset impairments divided by total revenues.
Group 1 Automotive, Inc.
Additional Information -- Same Store(1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended December 31,
----------------------------------
2005 2004 % Change
----------- ----------- ---------
REVENUES:
New vehicle retail sales $ 871,235 $ 892,939 (2.4)%
Used vehicle retail sales 252,963 250,001 1.2
Used vehicle wholesale sales 81,588 93,749 (13.0)
----------- ----------- ---------
Total used 334,551 343,750 (2.7)
Parts and service 160,215 155,096 3.3
Finance and insurance 42,110 42,361 (0.6)
----------- ----------- ---------
Total $1,408,111 $1,434,146 (1.8)%
GROSS MARGIN:
New vehicle retail sales 7.2 % 7.3 %
Used vehicle retail sales 12.7 12.0
Used vehicle wholesale sales (2.1) (3.3)
----------- -----------
Total used 9.1 7.8
Parts and service 54.2 55.0
Finance and insurance 100.0 100.0
----------- -----------
Total 15.8 % 15.3 %
GROSS PROFIT (LOSS):
New vehicle retail sales $ 63,063 $ 64,769 (2.6)%
Used vehicle retail sales 32,026 29,901 7.1
Used vehicle wholesale sales (1,696) (3,052) 44.4
----------- ----------- ---------
Total used 30,330 26,849 13.0
Parts and service 86,891 85,283 1.9
Finance and insurance 42,110 42,361 (0.6)
----------- ----------- ---------
Total $ 222,394 $ 219,262 1.4 %
UNITS SOLD:
Retail new vehicles sold 28,904 29,974 (3.6)%
Retail used vehicles sold 15,612 15,923 (2.0)
Wholesale used vehicles sold 10,874 12,775 (14.9)
----------- ----------- ---------
Total used 26,486 28,698 (7.7)%
GROSS PROFIT (LOSS) PER UNIT SOLD:
New vehicle retail sales $ 2,182 $ 2,161 1.0 %
Used vehicle retail sales 2,051 1,878 9.2
Used vehicle wholesale sales (156) (239) 34.7
Total used 1,145 936 22.3
Finance and insurance (per
retail unit) 946 923 2.5
OTHER:
Adjusted used gross margin(2) 12.0 % 10.7 %
Adjusted used gross profit per
retail unit(3) $ 1,943 $ 1,686 15.2 %
SG&A expenses $ 178,820 $ 181,730 (1.6)%
SG&A as % revenues 12.7 % 12.7 %
SG&A as % gross profit 80.4 % 82.9 %
EBITDA Margin(4) 3.1 % 2.6 %
Operating margin 2.6 % 2.1 %
Floorplan interest $ (9,853) $ (7,641) 28.9 %
Floorplan assistance 8,052 8,691 (7.4)
----------- ----------- ---------
Net floorplan benefit $ (1,801) $ 1,050 (271.5)%
Twelve Months Ended December 31,
----------------------------------
2005 2004 % Change
----------- ----------- ---------
REVENUES:
New vehicle retail sales $3,339,754 $3,344,855 (0.2)%
Used vehicle retail sales 997,393 987,542 1.0
Used vehicle wholesale sales 352,880 358,596 (1.6)
----------- ----------- ---------
Total used 1,350,273 1,346,138 0.3
Parts and service 589,093 564,683 4.3
Finance and insurance 175,610 172,812 1.6
----------- ----------- ---------
Total $5,454,730 $5,428,488 0.5 %
GROSS MARGIN:
New vehicle retail sales 7.1 % 7.1 %
Used vehicle retail sales 12.7 12.2
Used vehicle wholesale sales (1.1) (2.3)
----------- -----------
Total used 9.1 8.3
Parts and service 54.3 54.8
Finance and insurance 100.0 100.0
----------- -----------
Total 15.7 % 15.3 %
GROSS PROFIT (LOSS):
New vehicle retail sales $ 235,955 $ 236,448 (0.2)%
Used vehicle retail sales 127,130 120,424 5.6
Used vehicle wholesale sales (3,986) (8,231) 51.6
----------- ----------- ---------
Total used 123,144 112,193 9.8
Parts and service 319,640 309,638 3.2
Finance and insurance 175,610 172,812 1.6
----------- ----------- ---------
Total $ 854,349 $ 831,091 2.8 %
UNITS SOLD:
Retail new vehicles sold 116,610 117,838 (1.0)%
Retail used vehicles sold 64,300 66,241 (2.9)
Wholesale used vehicles sold 47,377 49,290 (3.9)
----------- ----------- ---------
Total used 111,677 115,531 (3.3)%
GROSS PROFIT (LOSS) PER UNIT SOLD:
New vehicle retail sales $ 2,023 $ 2,007 0.8 %
Used vehicle retail sales 1,977 1,818 8.7
Used vehicle wholesale sales (84) (167) 49.7
Total used 1,103 971 13.6
Finance and insurance (per
retail unit) 971 939 3.4
OTHER:
Adjusted used gross margin(2) 12.3 % 11.4 %
Adjusted used gross profit per
retail unit(3) $ 1,915 $ 1,694 13.0 %
SG&A expenses $ 678,527 $ 671,038 1.1 %
SG&A as % revenues 12.4 % 12.4 %
SG&A as % gross profit 79.4 % 80.7 %
EBITDA Margin(4) 3.3 % 2.8 %
Operating margin 2.8 % 1.8 %
Floorplan interest $ (34,860) $ (25,301) 37.8 %
Floorplan assistance 34,007 33,148 2.6
----------- ----------- ---------
Net floorplan benefit $ (853) $ 7,847 (110.9)%
(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.
(4) Earnings before interest, taxes, depreciation, amortization, and
asset impairments divided by total revenues.