Company Reinstates Full-Year Guidance
HOUSTON, TX -- (Marketwire) -- 07/28/09 -- Group 1 Automotive, Inc. (NYSE: GPI), a Fortune
500 automotive retailer, today reported second-quarter adjusted net income
from continuing operations of $10.3 million, or $0.44 per diluted share,
for the period ended June 30, 2009, as compared to the 2008 results of
$17.8 million, or $0.79 per diluted share. For comparison purposes, as
shown in the attached reconciliation table, the 2009 second-quarter results
included after-tax charges of $0.2 million, or $0.01 per diluted share, for
a non-cash impairment charge for a property related to a domestic
manufacturer; pre-payment charges on independent mortgage agreements that
were rolled into the existing syndicated mortgage facility; and, gains on a
dealership disposition and debt redemptions. The 2008 second-quarter
results included lease termination after-tax charges of $0.5 million, or
$0.02 per diluted share. Including the charges, net income from continuing
operations was $10.1 million, or $0.43 per diluted share, for the quarter
ended June 30, 2009.
Second-Quarter Operating Highlights
-- Same-store new vehicle margins expanded 40 basis points from first-
quarter, to 5.8 percent, as lower inventory levels across the industry
begin to reduce selling pressure.
-- Same-store gross margin improved 130 basis points, to 17.2 percent,
from second quarter 2008. The gross margin improvement was attributed to
improved total used vehicle margins, as well as a favorable mix shift to
the higher-margin parts and service business from the lower-margin new
vehicle business.
-- Group 1's same-store parts and service business held relatively
stable, with a gross margin of 52.6 percent on 3.7 percent lower sales.
-- On a consolidated basis, selling, general and administrative (SG&A)
expenses were reduced $44.2 million in the quarter, bringing the total
expense reduction to $86.1 million this year.
-- New vehicle inventory was reduced by $110 million, to $374 million,
bringing inventory down to a 55 days' supply.
"In addition to the stable profitability of Group 1's parts and service
business, the cost cutting measures we completed in the first quarter
coupled with our ongoing inventory management efforts delivered
better-than-anticipated results in the second quarter," said Earl J.
Hesterberg, Group 1's president and chief executive officer. "Group 1's
operating team has been working diligently to reduce expenses and new
vehicle inventories, resulting in more-streamlined operations that run
profitably at current selling rates."
Corporate Development Update
Group 1 previously announced that it augmented its Houston portfolio by
acquiring a Hyundai franchise in April with estimated annual revenues of
approximately $36.7 million.
Group 1 also previously announced that it sold a Ford dealership in March
with trailing-12-month revenues of $38.9 million. Subsequently, in June,
Group 1 terminated a Volvo franchise in New York with trailing-12-month
revenues of $25.3 million.
Group 1's Balance Sheet Strengthened
Group 1 announced that it has remained in compliance with all of its debt
covenants as of June 30.
Group 1 reported it reduced its new vehicle inventory during the quarter by
$109.7 million, to $374.4 million as of June 30. In addition, the company
reduced non-floorplan debt by an additional $41.3 million during the
quarter, reflecting primarily the repurchase of $6.7 million of its 2.25
percent convertible bonds, paying down its acquisition line by $30.0
million and reducing its mortgage debt by $4.7 million. The company ended
the quarter with overall available liquidity of $172.7 million.
"The combination of improving operating performance and significant
reductions in debt continues to strengthen the balance sheet and ensure
strong compliance with our debt covenants," said John C. Rickel, Group 1's
senior vice president and chief financial officer.
2009 Full-Year Guidance
Group 1 believes that the automotive retail market has stabilized and is,
therefore, reinstating 2009 full-year earnings guidance with a range of
$1.25 to $1.35 per diluted share under the following assumptions:
-- Industry seasonally adjusted annual sales rate (SAAR) of 10.0 million
vehicles
-- SG&A expenses as a percent of gross profit at 80 percent to 83.5
percent, excluding any one-time items, as lower sales revenues are expected
to offset cost improvements
-- Total year-over-year reduction in SG&A expenses of $120 million at a
10 million SAAR level
-- Tax rate of 40.0 percent
-- Estimated average diluted shares outstanding of 23.2 million
-- Capital expenditures of $25 million or less
-- Guidance includes the impact of APB 14-1 and excludes the impact of
future acquisitions and dispositions, as well as potential related exit
costs
On a same-store basis:
-- Retail vehicle margins consistent with six-month 2009 levels
-- Parts and service revenues 3 percent to 5 percent lower
-- Finance and insurance gross profit at $950 to $975 per retail unit
Second-Quarter Earnings Conference Call
Group 1's senior management will host a conference call today at 10 a.m. ET
to discuss the second-quarter financial results and the company's 2009
outlook and strategy.
The conference call will be simulcast live on the Internet at
www.group1auto.com through the Investor Relations section. A replay will be
available for 30 days.
The conference call will also be available live by dialing in 10 minutes
prior to the start of the call at:
Domestic: 877-419-6596
International: 719-325-4862
Confirmation code: 8665542
A telephonic replay will be available following the call through Aug. 7 by
dialing:
Domestic: 888-203-1112
International: 719-457-0820
Confirmation code: 8665542
About Group 1 Automotive, Inc.
Group 1 owns and operates 98 automotive dealerships, 132 franchises, and 24
collision service centers in the United States and the United Kingdom that
offer 31 brands of automobiles. 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.
This press release contains "forward-looking statements," which are
statements related to future, not past, events. In this context, the
forward-looking statements often include statements regarding our goals,
plans, projections and guidance regarding our financial position, results
of operations, market position, pending and potential future acquisitions
and business strategy, and often contain words such as "expects,"
"anticipates," "intends," "plans," "believes," "seeks" or "will." Any such
forward-looking statements are not assurances of future performance and
involve risks and uncertainties that may cause results to differ materially
from those set forth in the statements. These risks and uncertainties
include, among other things, (a) general economic and business conditions,
(b) the level of manufacturer incentives, (c) the future regulatory
environment, (d) our ability to obtain an inventory of desirable new and
used vehicles, (e) our relationship with our automobile manufacturers and
the willingness of manufacturers to approve future acquisitions, (f) our
cost of financing and the availability of credit for consumers, (g) our
ability to complete acquisitions and dispositions and the risks associated
therewith, (h) foreign exchange controls and currency fluctuations, and (i)
our ability to retain key personnel. These factors, as well as additional
factors that could affect our forward-looking statements, are described in
our Form 10-K under the headings "Business--Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of Operations."
We urge you to carefully consider this information. We undertake no duty to
update our forward-looking statements, including our earnings outlook.
FINANCIAL TABLES TO FOLLOW
Group 1 Automotive, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended June 30, Six Months Ended June 30,
----------------------------- -------------------------------
% %
2009 2008 Change 2009 2008 Change
--------- --------- ------ ---------- ---------- ------
REVENUES:
New vehicle
retail
sales $ 608,592 $ 971,281 (37.3)% $1,155,884 $1,860,062 (37.9)%
Used
vehicle
retail
sales 249,770 298,593 (16.4) 474,629 602,588 (21.2)
Used
vehicle
wholesale
sales 34,649 67,496 (48.7) 69,385 134,723 (48.5)
Parts and
service 183,105 192,753 (5.0) 363,970 383,589 (5.1)
Finance and
insurance 32,639 52,992 (38.4) 64,704 105,415 (38.6)
--------- --------- ------ ---------- ---------- ------
Total
revenues 1,108,755 1,583,115 (30.0)% 2,128,572 3,086,377 (31.0)%
COST OF SALES:
New vehicle
retail sales 573,612 908,262 (36.8)% 1,091,430 1,739,899 (37.3)%
Used vehicle
retail sales 223,942 266,192 (15.9) 424,195 536,605 (20.9)
Used vehicle
wholesale
sales 33,541 68,290 (50.9) 67,333 135,458 (50.3)
Parts and
service 86,545 88,960 (2.7) 171,845 175,426 (2.0)
--------- --------- ------ ---------- ---------- ------
Total cost
of sales 917,640 1,331,704 (31.1)% 1,754,803 2,587,388 (32.2)%
--------- --------- ------ ---------- ---------- ------
GROSS PROFIT 191,115 251,411 (24.0)% 373,769 498,989 (25.1)%
SELLING,
GENERAL AND
ADMINISTRATIVE
EXPENSES 151,113 195,337 (22.6) 304,347 390,399 (22.0)
DEPRECIATION
AND
AMORTIZATION
EXPENSE 6,462 6,497 (0.5) 12,875 12,314 4.6
ASSET
IMPAIRMENTS 2,040 - 100.0 2,135 - 100.0
--------- --------- ------ ---------- ---------- ------
OPERATING
INCOME 31,500 49,577 (36.5)% 54,412 96,276 (43.5)%
OTHER INCOME
(EXPENSE):
Floorplan
interest
expense (7,857) (12,392) (36.6) (16,819) (24,400) (31.1)
Other interest
expense, net (6,136) (7,065) (13.1) (11,598) (14,904) (22.2)
Gain on
redemption
of long-term
debt 2,102 - 100.0 18,090 - 100.0
Other income,
net (5) (36) (86.1) (2) 723 (100.3)
--------- --------- ------ ---------- ---------- ------
INCOME FROM
CONTINUING
OPERATIONS
BEFORE INCOME
TAXES
AND ADOPTION
OF APB 14-1 19,604 30,084 (34.8)% 44,083 57,695 (23.6)%
PROVISION FOR
INCOME TAXES (7,445) (11,591) (35.8) (17,201) (22,101) (22.2)
--------- --------- ------ ---------- ---------- ------
INCOME FROM
CONTINUING
OPERATIONS
BEFORE
ADOPTION OF
APB 14-1 12,159 18,493 (34.3)% 26,882 35,594 (24.5)%
ADOPTION OF
APB 14-1:
Adjustment
to gain on
redemption of
convertible
notes (1,870) - 100.0 (10,477) - 100.0
Amortization
of convertible
notes
discount (1,440) (1,951) (26.2) (2,941) (3,875) (24.1)
Income tax
benefit
related to
adoption
of APB
14-1 1,233 737 67.3 4,993 1,465 240.8
--------- --------- ------ ---------- ---------- ------
LOSS RELATED
TO ADOPTION
OF APB
14-1 (2,077) (1,214) 71.1 (8,425) (2,410) 249.6
--------- --------- ------ ---------- ---------- ------
INCOME FROM
CONTINUING
OPERATIONS 10,082 17,279 (41.7)% 18,457 33,184 (44.4)%
DISCONTINUED
OPERATIONS:
Loss
related to
discontinued
operations - (2,367) (100.0) - (3,481) (100.0)
Income tax
benefit
related to
loss on
discontinued
operations - 1,091 (100.0) - 1,478 (100.0)
--------- --------- ------ ---------- ---------- ------
LOSS RELATED TO
DISCONTINUED
OPERATIONS - (1,276) (100.0)% - (2,003) (100.0)%
--------- --------- ------ ---------- ---------- ------
NET INCOME $ 10,082 $ 16,003 (37.0)% $ 18,457 $ 31,181 (40.8)%
========= ========= ====== ========== ========== ======
DILUTED INCOME
PER SHARE:
Income per
share from
continuing
operations
before
adoption of
APB 14-1 $ 0.52 $ 0.82 (36.6)% $ 1.16 $ 1.57 (26.1)%
Loss per
share
related to
adoption
of APB 14-1 (0.09) (0.05) 80.0 (0.36) (0.11) 218.2
--------- --------- ------ ---------- ---------- ------
Income per
share from
continuing
operations 0.43 0.77 (44.2) 0.80 1.46 (45.2)
Loss per share
related to
discontinued
operations - (0.06) (100.0) - (0.09) (100.0)
--------- --------- ------ ---------- ---------- ------
Income per
share $ 0.43 $ 0.71 (39.4)% $ 0.80 $ 1.37 (41.6)%
========= ========= ====== ========== ========== ======
Weighted
average
diluted
shares
outstanding 23,288 22,661 2.8% 23,107 22,728 1.7%
Group 1 Automotive, Inc.
Consolidated Balance Sheets
(Unaudited)
(Dollars in thousands)
June 30, December 31,
2009 2008 % Change
----------- ----------- -----------
ASSETS:
CURRENT ASSETS:
Cash and cash equivalents $ 22,527 $ 23,144 (2.7)%
Contracts in transit and vehicle
receivables, net 78,881 102,834 (23.3)
Accounts and notes receivable,
net 59,513 67,350 (11.6)
Inventories 541,213 845,944 (36.0)
Deferred income taxes 15,129 18,474 (18.1)
Prepaid expenses and other
current assets 39,016 38,878 0.4
----------- ----------- -----------
Total current assets 756,279 1,096,624 (31.0)
PROPERTY AND EQUIPMENT, net 498,486 514,891 (3.2)
GOODWILL AND OTHER INTANGIBLES 656,319 655,784 0.1
OTHER ASSETS 18,657 20,815 (10.4)
----------- ----------- -----------
Total assets $ 1,929,741 $ 2,288,114 (15.7)%
=========== =========== ===========
LIABILITIES AND STOCKHOLDERS'
EQUITY:
CURRENT LIABILITIES:
Floorplan notes payable - credit
facility $ 458,247 $ 738,551 (38.0)%
Offset account related to
floorplan notes payable -
credit facility (44,235) (44,859) (1.4)
Floorplan notes payable -
manufacturer affiliates 85,481 128,580 (33.5)
Current maturities of long-term
debt 13,197 13,594 (2.9)
Accounts payable 70,533 74,235 (5.0)
Accrued expenses 85,918 94,395 (9.0)
----------- ----------- -----------
Total current liabilities 669,141 1,004,496 (33.4)
2.25% CONVERTIBLE SENIOR NOTES
(aggregate principal of
$187,753 and $224,500, respectively) 132,848 155,333 (14.5)
8.25% SENIOR SUBORDINATED NOTES 73,112 72,962 0.2
MORTGAGE FACILITY, net of current
maturities 180,665 168,583 7.2
OTHER REAL ESTATE RELATED AND
LONG-TERM DEBT, net of
current maturities 20,900 50,444 (58.6)
CAPITAL LEASE OBLIGATIONS RELATED
TO REAL ESTATE, net of current
maturities 38,558 39,401 (2.1)
ACQUISITION LINE 30,000 50,000 (40.0)
DEFERRED INCOME TAXES 17,075 2,768 516.9
LIABILITIES FROM INTEREST RATE RISK
MANAGEMENT ACTIVITIES 37,479 44,655 (16.1)
OTHER LIABILITIES 27,080 27,135 (0.2)
----------- ----------- -----------
Total liabilities before
deferred revenues 1,226,858 1,615,777 (24.1)
----------- ----------- -----------
DEFERRED REVENUES 7,656 10,220 (25.1)
STOCKHOLDERS' EQUITY:
Common stock 261 261 -
Additional paid-in capital 348,592 351,405 (0.8)
Retained earnings 455,544 437,087 4.2
Accumulated other comprehensive
loss (29,606) (38,109) (22.3)
Treasury stock (79,564) (88,527) (10.1)
----------- ----------- -----------
Total stockholders' equity 695,227 662,117 5.0
----------- ----------- -----------
Total liabilities and
stockholders' equity $ 1,929,741 $ 2,288,114 (15.7)%
=========== =========== ===========
KEY DEBT COVENANT METRICS: *
Senior secured leverage ratio
(must be less than 2.75) 1.40 1.49
Total leverage ratio (must be
less than 4.50) 3.26 3.46
Fixed charge coverage ratio
(must be greater than 1.25) 1.72 1.59
Current ratio (must be greater
than 1.15) 1.26 1.18
* Refer to website, www.group1auto.com, for debt covenant calculation
definitions.
Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
Three Months Six Months
Ended, Ended,
June 30, June 30,
-------------- --------------
2009 2008 2009 2008
------ ------ ------ ------
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
Region Geographic Market
Eastern Massachusetts 14.6% 11.8% 14.2% 11.7%
New Jersey 6.7 7.1 6.9 6.8
New York 4.6 4.3 4.4 4.2
New Hampshire 3.9 3.7 3.8 3.5
Georgia 3.7 3.3 3.7 3.4
Louisiana 3.0 3.1 3.2 3.4
Florida 1.6 2.3 1.8 2.6
Mississippi 1.8 1.7 1.7 1.6
Maryland 1.0 0.6 1.0 0.3
Alabama 0.6 0.9 0.6 0.9
South Carolina 0.3 0.3 0.3 0.3
------ ------ ------ ------
41.8 39.1 41.6 38.7
Central Texas 33.1 32.2 32.5 32.6
Oklahoma 8.8 9.6 8.5 9.4
Kansas 1.3 1.4 1.2 1.3
------ ------ ------ ------
43.2 43.2 42.2 43.3
Western California 12.7 16.0 14.1 16.3
International United Kingdom 2.3 1.7 2.1 1.7
------ ------ ------ ------
100.0% 100.0% 100.0% 100.0%
NEW VEHICLE UNIT SALES BRAND MIX:
Toyota/Scion/Lexus 34.3% 35.5% 34.7% 35.2%
Honda/Acura 13.5 14.9 13.6 14.0
Nissan/Infiniti 12.6 12.7 12.1 12.9
BMW/Mini 10.3 8.9 9.7 8.2
Ford 8.9 8.7 9.1 9.7
Chrysler 6.2 5.7 6.5 6.3
Mercedes-Benz 5.4 5.7 5.8 5.6
GM 3.8 4.5 3.9 4.7
Other 5.0 3.4 4.6 3.4
------ ------ ------ ------
100.0% 100.0% 100.0% 100.0%
NEW VEHICLE UNIT OTHER MIX:
Import 56.3% 58.0% 55.9% 56.8%
Luxury 26.0 24.3 25.7 23.8
Domestic 17.7 17.7 18.4 19.4
------ ------ ------ ------
100.0% 100.0% 100.0% 100.00%
Car 58.0% 61.8% 57.0% 58.7%
Truck 42.0 38.2 43.0 41.3
------ ------ ------ ------
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 June 30, Six Months Ended June 30,
----------------------------- -----------------------------
% %
2009 2008 Change 2009 2008 Change
---------- ---------- ----- ---------- ---------- -----
REVENUES:
New vehicle
retail
sales $ 608,592 $ 971,281 (37.3)% $1,155,884 $1,860,062 (37.9)%
Used
vehicle
retail
sales 249,770 298,593 (16.4) 474,629 602,588 (21.2)
Used
vehicle
wholesale
sales 34,649 67,496 (48.7) 69,385 134,723 (48.5)
---------- ---------- ---------- ----------
Total
used 284,419 366,089 (22.3) 544,014 737,311 (26.2)
Parts and
service 183,105 192,753 (5.0) 363,970 383,589 (5.1)
Finance
and
insurance 32,639 52,992 (38.4) 64,704 105,415 (38.6)
---------- ---------- ---------- ----------
Total $1,108,755 $1,583,115 (30.0)% $2,128,572 $3,086,377 (31.0)%
GROSS MARGIN:
New vehicle
retail sales 5.7% 6.5% 5.6% 6.5%
Used vehicle
retail
sales 10.3 10.9 10.6 10.9
Used vehicle
wholesale
sales 3.2 (1.2) 3.0 (0.5)
Total
used 9.5 8.6 9.6 8.8
Parts and
service 52.7 53.8 52.8 54.3
Finance
and
insurance 100.0 100.0 100.0 100.0
Total 17.2% 15.9% 17.6% 16.2%
GROSS PROFIT:
New vehicle
retail
sales $ 34,980 $ 63,019 (44.5)% $ 64,454 $ 120,163 (46.4)%
Used
vehicle
retail
sales 25,828 32,401 (20.3) 50,434 65,983 (23.6)
Used
vehicle
wholesale
sales 1,108 (794) 239.5 2,052 (735) 379.2
---------- ---------- ---------- ----------
Total
used 26,936 31,607 (14.8) 52,486 65,248 (19.6)
Parts and
service 96,560 103,793 (7.0) 192,125 208,163 (7.7)
Finance
and
insurance 32,639 52,992 (38.4) 64,704 105,415 (38.6)
---------- ---------- ---------- ----------
Total $ 191,115 $ 251,411 (24.0)% $ 373,769 $ 498,989 (25.1)%
UNITS SOLD:
Retail new
vehicles
sold 19,954 32,368 (38.4)% 37,885 60,887 (37.8)%
Retail used
vehicles
sold 13,914 16,783 (17.1) 27,006 33,888 (20.3)
Wholesale
used
vehicles
sold 6,426 10,304 (37.6) 12,855 20,252 (36.5)
---------- ---------- ---------- ----------
Total
used 20,340 27,087 (24.9)% 39,861 54,140 (26.4)%
GROSS PROFIT
PER UNIT SOLD:
New vehicle
retail
sales $ 1,753 $ 1,947 (10.0)% $ 1,701 $ 1,974 (13.8)%
Used
vehicle
retail
sales 1,856 1,931 (3.9) 1,868 1,947 (4.1)
Used
vehicle
wholesale
sales 172 (77) 323.4 160 (36) 544.4
Total
used 1,324 1,167 13.5 1,317 1,205 9.3
Finance and
insurance
(per
retail
unit) $ 964 $ 1,078 (10.6)% $ 997 $ 1,112 (10.3)%
OTHER:
SG&A
expenses $ 151,113 $ 195,337 (22.6)% $ 304,347 $ 390,399 (22.0)%
SG&A as
% revenues 13.6% 12.3% 14.3% 12.6%
SG&A as
% gross
profit 79.1% 77.7% 81.4% 78.2%
Operating
margin 2.8% 3.1% 2.6% 3.1%
Pretax
margin 1.8% 1.9% 2.1% 1.9%
Floorplan
interest $ (7,857) $ (12,392) (36.6)% $ (16,819) $ (24,400) (31.1)%
Floorplan
assistance 4,725 7,839 (39.7) 9,259 15,565 (40.5)
---------- ---------- ---------- ----------
Net
floorplan
expense $ (3,132) $ (4,553) (31.2)% $ (7,560) $ (8,835) (14.4)%
Group 1 Automotive, Inc.
Additional Information - Same Store(1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended June 30, Six Months Ended June 30,
----------------------------- -----------------------------
% %
2009 2008 Change 2009 2008 Change
---------- ---------- ----- ---------- ---------- -----
REVENUES:
New vehicle
retail
sales $ 602,897 $ 954,220 (36.8)% $1,143,572 $1,834,094 (37.6)%
Used
vehicle
retail
sales 247,301 292,781 (15.5) 468,250 593,534 (21.1)
Used
vehicle
wholesale
sales 34,207 66,167 (48.3) 68,425 132,683 (48.4)
---------- ---------- ---------- ----------
Total
used 281,508 358,948 (21.6) 536,675 726,217 (26.1)
Parts and
service 181,333 188,353 (3.7) 359,149 376,624 (4.6)
Finance and
insurance 32,553 52,430 (37.9) 64,299 104,501 (38.5)
---------- ---------- ---------- ----------
Total $1,098,291 $1,553,951 (29.3)% $2,103,695 $3,041,436 (30.8)%
GROSS MARGIN:
New vehicle
retail
sales 5.8% 6.5% 5.6% 6.5%
Used vehicle
retail
sales 10.3 10.8 10.6 10.9
Used
vehicle
wholesale
sales 3.1 (0.9) 3.0 (0.4)
Total
used 9.5 8.7 9.6 8.9
Parts and
service 52.6 53.8 52.7 54.2
Finance
and
insurance 100.0 100.0 100.0 100.0
Total 17.2% 15.9% 17.6% 16.2%
GROSS PROFIT:
New vehicle
retail
sales $ 34,722 $ 61,803 (43.8)% $ 63,952 $ 118,555 (46.1)%
Used
vehicle
retail
sales 25,560 31,756 (19.5) 49,751 64,910 (23.4)
Used
vehicle
wholesale
sales 1,062 (573) 285.3 2,037 (494) 512.3
---------- ---------- ---------- ----------
Total
used 26,622 31,183 (14.6) 51,788 64,416 (19.6)
Parts and
service 95,467 101,342 (5.8) 189,390 204,254 (7.3)
Finance and
insurance 32,553 52,430 (37.9) 64,299 104,501 (38.5)
---------- ---------- ---------- ----------
Total $ 189,364 $ 246,758 (23.3)% $ 369,429 $ 491,726 (24.9)%
UNITS SOLD:
Retail new
vehicles
sold 19,807 31,825 (37.8)% 37,551 60,049 (37.5)%
Retail
used
vehicles
sold 13,826 16,437 (15.9) 26,760 33,338 (19.7)
Wholesale
used
vehicles
sold 6,375 10,125 (37.0) 12,737 19,940 (36.1)
---------- ---------- ---------- ----------
Total
used 20,201 26,562 (23.9)% 39,497 53,278 (25.9)%
GROSS PROFIT
PER UNIT SOLD:
New vehicle
retail
sales $ 1,753 $ 1,942 (9.7)% $ 1,703 $ 1,974 (13.7)%
Used
vehicle
retail
sales 1,849 1,932 (4.3) 1,859 1,947 (4.5)
Used
vehicle
wholesale
sales 167 (57) 393.0 160 (25) 740.0
Total
used 1,318 1,174 12.3 1,311 1,209 8.4
Finance
and
insurance
(per
retail
unit) $ 968 $ 1,086 (10.9)% $ 1,000 $ 1,119 (10.6)%
OTHER:
SG&A
expenses $ 150,482 $ 190,620 (21.1)% $ 300,728 $ 382,844 (21.4)%
SG&A as
% revenues 13.7% 12.3% 14.3% 12.6%
SG&A as
% gross
profit 79.5% 77.2% 81.4% 77.9%
Operating
margin 3.0% 3.2% 2.7% 3.2%
Floorplan
interest $ (7,816) $ (12,153) (35.7)% $ (16,731) $ (24,020) (30.3)%
Floorplan
assistance 4,724 7,669 (38.4) 9,240 15,307 (39.6)
---------- ---------- ---------- ----------
Net
floorplan
expense $ (3,092) $ (4,484) (31.0)% $ (7,491) $ (8,713) (14.0)%
(1) Same store amounts include the results for the identical months in
each period presented in the comparison, commencing with the first
full month we owned the dealership and, in the case of dispositions,
ending with the last full month we owned it. Same store results also
include the activities of our corporate office.
Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures
(Unaudited)
(Dollars in thousands, except per share amounts)
NET INCOME FROM CONTINUING OPERATIONS RECONCILIATION:
Three Months Ended June 30, Six Months Ended June 30,
------------------------ ------------------------
% %
2009 2008 Change 2009 2008 Change
------- -------- ------ ------- -------- ------
Reported net income
from continuing
operations $10,082 $ 17,279 (41.7)% $18,457 $ 33,184 (44.4)%
Adjustments:
Non-Cash asset
impairments
charges 1,265 - 1,265 -
Mortgage debt
refinance
charges 331 - 331 -
Gain on
dealership
disposition (902) - (451) -
Gain on debt
redemption (475) - (4,906) -
Lease
termination
charges - 535 - 535
------- -------- ------- --------
Adjusted net
income from
continuing
operations
(1) $10,301 $ 17,814 (42.2)% $14,696 $ 33,719 (56.4)%
DILUTED INCOME PER SHARE FROM CONTINUING OPERATIONS RECONCILIATION:
Three Months Ended June 30, Six Months Ended June 30,
------------------------ ------------------------
% %
2009 2008 Change 2009 2008 Change
------- -------- ------ ------- -------- ------
Reported income per
share from
continuing
operations $ 0.43 $ 0.77 (44.2)% $ 0.80 $ 1.46 (45.2)%
Adjustments:
Non-Cash asset
impairments
charges 0.06 - 0.06 -
Mortgage debt
refinance
charges 0.01 - 0.01 -
Gain on
dealership
disposition (0.04) - (0.02) -
Gain on debt
redemption (0.02) - (0.21) -
Lease
termination
charges - 0.02 - 0.02
------- -------- ------- --------
Adjusted
diluted
income per
share from
continuing
operations
(1) 0.44 0.79 (44.3)% 0.64 1.48 (56.8)%
(1) Adjusted net income from continuing operations and adjusted diluted
earnings per share from continuing operations means net income from
continuing operations or diluted earnings per share from continuing
operations, as the case may be, plus the adjustments noted above.
We use adjusted net income from continuing operations and adjusted
diluted earnings per share from continuing operations in our
evaluation of the performance of the company, as we believe that they
provide additional information regarding the performance of our
operations. We believe the presentation of these measures is
relevant and useful to investors because they improve period-to-period
comparability. Neither of these measures is a measure of financial
performance under GAAP. Accordingly, they should not be considered
as substitutes for net income from continuing operations or diluted
earnings per share from continuing operations prepared in accordance
with GAAP. Although we find these non-GAAP results useful in
evaluating the performance of our business, our reliance on these
measures is limited because the adjustments often have a material
impact on our net income from continuing operations and diluted
earnings per share from continuing operations calculated in
accordance with GAAP. Therefore, we typically use these adjusted
numbers in conjunction with our GAAP results to address these
limitations.
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AT GROUP 1:
President and CEO
Earl J. Hesterberg
(713) 647-5700
Senior Vice President and CFO
John C. Rickel
(713) 647-5700
Manager, Investor Relations
Kim Paper Canning
(713) 647-5700
AT Fleishman-Hillard:
Investors
John Roper
(713) 513-9505
AT Pierpont Communications:
Media
Clint L. Woods
(713) 627-2223
