gp1logoa07.gif                                     

FOR IMMEDIATE RELEASE

Group 1 Automotive Announces Third Quarter 2018 Financial Results
Increases Share Repurchase Authorization to $100 Million

HOUSTON, October 25, 2018 - Group 1 Automotive, Inc. (NYSE: GPI), (“Group 1” or the “Company”), an international, Fortune 500 automotive retailer, today reported 2018 third quarter net income of $34.8 million, diluted earnings per common share of $1.74, adjusted net income (a non-GAAP measure) of $49.2 million, and adjusted diluted earnings per common share (a non-GAAP measure) of $2.47.
Third quarter 2018 adjusted net income and diluted earnings per share exclude approximately $14.4 million of net after-tax adjustments, or $0.73 per common share. These adjustments are more than explained by non-cash asset impairments of $17.7 million and legal settlement reserve adjustments of $1.6 million, which were partially offset by gains on real estate and dealership transactions of $4.2 million and reduced tax liabilities of $0.7 million due to the corporate income tax rate enacted by the U.S. Tax Reform Bill.
“Although our results were impacted by some unusual factors, especially in the U.K., we are pleased with our quarterly results, which established a new all-time quarterly record of $2.47 per share on an adjusted basis,” said Earl J. Hesterberg, Group 1’s president and chief executive officer. “Strong used vehicle results and good cost control contributed positively to the quarter. However, the severe lack of 2019 model vehicles to sell in the U.K. during a major plate change sales month was unexpected and very damaging to our business. We expect manufacturer supply to improve across the U.K. by year end.”
Consolidated Results for Third Quarter 2018 (year-over-year comparable basis)
For ease of comparison, we have included constant currency metrics (a non-GAAP measure) both below (shown in parenthesis) and in the financial tables that follow:
Total revenue decreased 4.1 percent (decreased 3.1 percent) to $2.9 billion.
Total gross profit increased 0.9 percent (increased 1.8 percent), to $435.1 million.
New vehicle revenues decreased 10.0 percent (decreased 8.9 percent) on a 9.8 percent decrease in unit sales, reflecting difficult year-over-year comparisons as a result of very strong replacement demand from Hurricane Harvey in the third quarter 2017 and emission testing-related supply constraints in the UK in September 2018. New vehicle gross profit decreased 12.1 percent (decreased 10.5 percent), to $77.6 million.
Retail used vehicle revenues increased 6.6 percent (7.5 percent) on 9.7 percent higher unit sales. Retail used vehicle gross profit increased 6.4 percent (7.2 percent), to $50.2 million. Total used vehicle gross profit was up 6.2 percent (7.1 percent), to $49.8 million.
Parts and service gross profit increased 3.5 percent (4.2 percent) on revenue growth of 3.3 percent (4.2 percent). Same Store parts and service gross profit increased 1.8 percent (2.5 percent) on Same Store parts and service revenue growth of 2.0 percent (2.9 percent).
Finance and Insurance (F&I) gross profit per retail unit (PRU) increased 6.4 percent (7.0 percent), to $1,429.
Selling, General and Administrative (SG&A) expenses as a percent of gross profit decreased 330 basis points, to 72.8 percent. Adjusted Same Store SG&A as a percent of gross profit increased 110 basis points, to 73.3 percent.

Segment Results for Third Quarter 2018 (year-over-year comparable basis)
United States:
The Company’s U.S. operations accounted for 76.1 percent of total revenues and 81.0 percent of total gross profit. Total U.S. revenues were $2.2 billion, a decrease of 4.4 percent, reflecting the aforementioned challenging year-over-year comparisons from Hurricane Harvey in 3Q17. New vehicle revenues decreased 7.7 percent. F&I revenues increased 5.4 percent, parts and service revenue increased 1.9 percent, and retail used vehicle revenue increased 1.8 percent.

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F&I gross profit PRU increased $122, or 7.8 percent per unit, to $1,688; and total gross profit was about flat at $352.5 million. New vehicle retail gross profit PRU decreased $104, to $1,787. Total used vehicle gross profit PRU increased $18, to $1,068.
SG&A expenses as a percent of gross profit improved 530 basis points, to 68.7 percent; and operating margin expanded 30 basis points, to 3.3 percent. Adjusted SG&A expenses as a percent of gross profit increased 60 basis points, to 70.6 percent. Adjusted operating margin was flat at 4.1 percent.
United Kingdom:
The Company’s U.K. operations accounted for 20.3 percent of total revenues and 15.8 percent of total gross profit. As of September 1, 2018, all light vehicles sold in the EU are subject to mandatory emissions standards testing known as the Worldwide Harmonised Light Vehicle Test Procedure (“WLTP”). This testing procedure created a serious inventory supply delay in the release of many 2019 model year vehicles for sale, which resulted in a 10.2 percent industry sales decrease for the third quarter 2018 and a 20.5 percent industry decrease in the important sales month of September. Various brands were more impacted than others. The Company’s most significantly impacted brand was Audi, which experienced an industry sales decrease of 28.6 percent for the third quarter 2018. This manufacturer supply issue resulted in a Same Store new vehicle revenues decrease of 26.2 percent (decreased 25.3 percent) and Same Store new vehicle units sold decrease of 21.5 percent. On a constant currency basis, strong Same Store used sales (up 14.3 percent) and after sales growth (up 5.9 percent) were partial offsets. The Company’s total U.K. revenues decreased 0.8 percent (no change), to $585.9 million. Consistent with the quarterly industry decrease, Same Store U.K. revenues decreased 11.0 percent (decreased 10.1 percent), to $496.4 million.
Total gross profit increased 8.1 percent (9.0 percent), to $68.7 million, while Same Store gross profit decreased 4.3 percent (decreased 3.4 percent), to $58.0 million.
SG&A expenses as a percent of gross profit increased 290 basis points, to 86.9 percent; and operating margin decreased 30 basis points, to 1.0 percent. Same Store SG&A expenses as a percent of gross profit increased 580 basis points, to 87.7 percent; and Same Store operating margin decreased 70 basis points, to 0.9 percent, reflecting the deleveraging impact of the reduced new vehicle volumes.
Brazil:
The Company’s Brazilian operations accounted for 3.6 percent of total revenues and 3.2 percent of total gross profit. The Company’s Same Store new vehicle revenue decreased 24.3 percent (decreased 5.5 percent), with units down 8.9 percent. Same store total revenues decreased 19.4 percent (increased 0.5 percent), with the constant currency increase driven by revenue growth of 17.2 percent in F&I, 14.3 percent in total used vehicles, and 7.6 percent in parts & service. SG&A expenses as a percent of gross profit increased 14.6 percentage points, to 106.8 percent. Adjusted Same Store SG&A expenses as a percent of gross profit improved 460 basis points, to 85.1 percent
Share Repurchase Authorization
During the third quarter of 2018, the Company repurchased 789,509 shares at an average price per common share of $69.77, for a total of $55.1 million. Under SEC Rule 10b5-1, from October 1, 2018 to October 25, 2018, the Company repurchased an additional 399,872 shares at an average price per common share of $62.52, for a total of $25.0 million. Year-to-date through October 25, 2018, the Company has repurchased 1,935,738 shares at an average price per common share of $67.86, for a total of $131.4 million. These repurchases represented approximately 9.5 percent of the Company’s share float at the beginning of the year and reduced the total outstanding share count to approximately 18.6 million common shares as of October 25, 2018.
On October 25, 2018, the Company’s board of directors increased Group 1’s common stock share repurchase authorization to $100.0 million.

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Future repurchases may be made from time to time, based on market conditions, legal requirements and other corporate considerations, in the open market or in privately negotiated transactions, and subject to Board approval and covenant restrictions.
Corporate Development
In August 2018, the Company disposed of Ford Escondido, which generated approximately $60 million in trailing-twelve-month revenues.

Year-to-date 2018, the Company has acquired a total of 14 franchises, which are expected to generate an estimated $530 million in annual revenues; and the Company has disposed of 4 franchises that generated approximately $175 million in trailing-twelve-month revenues.
Third Quarter 2018 Earnings Conference Call Details
Group 1’s senior management will host a conference call today at 10 a.m. ET to discuss the third quarter financial results and the Company’s outlook and strategy.
The conference call will be simulcast live on the Internet at www.group1auto.com, then click on ‘Investor Relations’ and then ‘Events’ or through this link: http://www.group1corp.com/events. A webcast replay will be available for 30 days.
The conference call will also be available live by dialing in 15 minutes prior to the start of the call at:
Domestic:     1-888-317-6003
International:     1-412-317-6061
Conference ID:    4290144
A telephonic replay will be available following the call through November 1, 2018 by dialing:
Domestic:     1-877-344-7529
International:     1-412-317-0088
Replay ID:    10125481

About Group 1 Automotive, Inc.
Group 1 owns and operates 181 automotive dealerships, 237 franchises, and 47 collision centers in the United States, the United Kingdom and Brazil that offer 32 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service contracts; provides automotive maintenance and repair services; and sells vehicle parts.
Investors please visit www.group1corp.com, www.group1auto.com, www.group1collision.com, www.facebook.com/group1auto, and www.twitter.com/group1auto, where Group 1 discloses additional information about the Company, its business, and its results of operations.
FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements related to future, not past, events and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. 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,” “should,” “foresee,” “may” or “will” and similar expressions. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Any such forward-looking statements are not assurances of future performance and involve risks and uncertainties that may cause actual 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

3


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. For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with the SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.
NON-GAAP FINANCIAL MEASURES
In addition to evaluating the financial condition and results of our operations in accordance with GAAP, from time to time our management evaluates and analyzes results and any impact on the Company of strategic decisions and actions relating to, among other things, cost reduction, growth, and profitability improvement initiatives, and other events outside of normal, or "core," business and operations, by considering alternative financial measures not prepared in accordance with GAAP. This includes evaluating measures such as adjusted selling, general and administrative expenses, adjusted net income and adjusted diluted earnings per share. These adjusted measures are not measures of financial performance under U.S. GAAP, but are instead considered non-GAAP financial performance measures. Non-GAAP measures do not have definitions under GAAP and may be defined differently by and not be comparable to similarly titled measures used by other companies. As a result, any non-GAAP financial measures considered and evaluated by management are reviewed in conjunction with a review of the most directly comparable measures calculated in accordance with GAAP. We caution investors not to place undue reliance on such non-GAAP measures, but also to consider them with the most directly comparable GAAP measures. In our evaluation of results from time to time, we exclude items that do not arise directly from core operations, such as non-cash asset impairment charges, gains and losses on dealership franchise or real estate transactions, and catastrophic weather events such as hail storms, hurricanes, and snow storms. Because these non-core charges and gains materially affect the Company's financial condition or results in the specific period in which they are recognized, management also evaluates, and makes resource allocation and performance evaluation decisions based on, the related non-GAAP measures excluding such items.
In addition to using such non-GAAP measures to evaluate results in a specific period, management believes that such measures may provide more complete and consistent comparisons of operational performance on a period-over-period historical basis and a better indication of expected future trends. Our management also uses these adjusted measures in conjunction with U.S. GAAP financial measures to assess our business, including communication with our Board of Directors, investors and industry analysts concerning financial performance. We disclose these non-GAAP measures, and the related reconciliations, because we believe investors use these metrics in evaluating longer-term period-over-period performance, and to allow investors to better understand and evaluate the information used by management to assess operating performance. The exclusion of certain expenses in the calculation of non-GAAP financial measures should not be construed as an inference that these costs are unusual or infrequent. We anticipate excluding these expenses in the future presentation of our non-GAAP financial measures.
In addition, we evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our underlying business and results of operations, consistent with how we evaluate our performance. We calculate constant currency percentages by converting our current period reported results for entities reporting in currencies other than United States dollars using comparative period exchange rates rather than the actual exchange rates in effect during the respective periods. The constant currency performance measures should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with U.S. GAAP.
SOURCE: Group 1 Automotive, Inc.





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Investor contacts:
Sheila Roth
Manager, Investor Relations
Group 1 Automotive, Inc.
713-647-5741 | sroth@group1auto.com
Media contacts:
Pete DeLongchamps
Senior Vice President, Manufacturer Relations, Financial Services and Public Affairs
Group 1 Automotive, Inc.
713-647-5770 | pdelongchamps@group1auto.com
or
Clint Woods
Pierpont Communications, Inc.
713-627-2223 | cwoods@piercom.com


5

Exhibit 99.1

Group 1 Automotive, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
 
 
 
 
 
 
 
 
 
Three Months Ended September 30,
 
 
2018
 
2017
 
% Increase/(Decrease)
REVENUES:
 
 
 
 
 
 
New vehicle retail sales
 
$
1,539,498

 
$
1,710,241

 
(10.0
)
Used vehicle retail sales
 
792,405

 
743,038

 
6.6

Used vehicle wholesale sales
 
86,570

 
104,827

 
(17.4
)
Parts and service
 
354,501

 
343,193

 
3.3

Finance, insurance and other, net
 
116,084

 
110,993

 
4.6

Total revenues
 
2,889,058

 
3,012,292

 
(4.1
)
COST OF SALES:
 
 
 
 
 
 
New vehicle retail sales
 
1,461,896

 
1,621,909

 
(9.9
)
Used vehicle retail sales
 
742,250

 
695,915

 
6.7

Used vehicle wholesale sales
 
86,884

 
105,012

 
(17.3
)
Parts and service
 
162,927

 
158,036

 
3.1

Total cost of sales
 
2,453,957

 
2,580,872

 
(4.9
)
GROSS PROFIT
 
435,101

 
431,420

 
0.9

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
 
316,771

 
328,327

 
(3.5
)
DEPRECIATION AND AMORTIZATION EXPENSE
 
16,981

 
15,059

 
12.8

ASSET IMPAIRMENTS
 
23,159

 
9,526

 
143.1

OPERATING INCOME
 
78,190

 
78,508

 
(0.4
)
OTHER EXPENSE:
 
 
 
 
 
 
Floorplan interest expense
 
(14,685
)
 
(13,491
)
 
8.9

Other interest expense, net
 
(19,140
)
 
(17,874
)
 
7.1

INCOME BEFORE INCOME TAXES
 
44,365

 
47,143

 
(5.9
)
PROVISION FOR INCOME TAXES
 
(9,587
)
 
(17,262
)
 
(44.5
)
NET INCOME
 
$
34,778

 
$
29,881

 
16.4

Less: Earnings allocated to participating securities
 
$
1,181

 
$
1,023

 
15.4

Earnings available to diluted common shares
 
$
33,597

 
$
28,858

 
16.4

DILUTED EARNINGS PER SHARE
 
$
1.74

 
$
1.43

 
21.7

Weighted average dilutive common shares outstanding
 
19,261

 
20,225

 
(4.8
)
Weighted average participating securities
 
684

 
724

 
(5.5
)
Total weighted average shares outstanding
 
19,945

 
20,949

 
(4.8
)


1

Exhibit 99.1

Group 1 Automotive, Inc.
 
Consolidated Statements of Operations
 
(Unaudited)
 
(In thousands, except per share amounts)
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30,
 
 
 
2018
 
2017
 
% Increase/(Decrease)
 
REVENUES:
 
 
 
 
 
 
 
New vehicle retail sales
 
$
4,608,658

 
$
4,496,222

 
2.5

 
Used vehicle retail sales
 
2,394,828

 
2,089,914

 
14.6

 
Used vehicle wholesale sales
 
283,453

 
308,361

 
(8.1
)
 
Parts and service
 
1,062,145

 
994,522

 
6.8

 
Finance, insurance and other, net
 
343,462

 
314,297

 
9.3

 
Total revenues
 
8,692,546

 
8,203,316

 
6.0

 
COST OF SALES:
 
 
 
 
 
 
 
New vehicle retail sales
 
4,379,047

 
4,263,752

 
2.7

 
Used vehicle retail sales
 
2,249,964

 
1,952,873

 
15.2

 
Used vehicle wholesale sales
 
281,871

 
308,713

 
(8.7
)
 
Parts and service
 
488,637

 
458,144

 
6.7

 
Total cost of sales
 
7,399,519

 
6,983,482

 
6.0

 
GROSS PROFIT
 
1,293,027

 
1,219,834

 
6.0

 
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
 
949,210

 
916,674

 
3.5

 
DEPRECIATION AND AMORTIZATION EXPENSE
 
49,961

 
42,758

 
16.8

 
ASSET IMPAIRMENTS
 
27,427

 
9,526

 
187.9

 
OPERATING INCOME
 
266,429

 
250,876

 
6.2

 
OTHER EXPENSE:
 
 
 
 
 
 
 
Floorplan interest expense
 
(43,335
)
 
(38,659
)
 
12.1

 
Other interest expense, net
 
(57,374
)
 
(52,188
)
 
9.9

 
INCOME BEFORE INCOME TAXES
 
165,720

 
160,029

 
3.6

 
PROVISION FOR INCOME TAXES
 
(38,666
)
 
(57,076
)
 
(32.3
)
 
NET INCOME
 
$
127,054

 
$
102,953

 
23.4

 
Less: Earnings allocated to participating securities
 
$
4,306

 
$
3,659

 
17.7

 
Earnings available to diluted common shares
 
$
122,748

 
$
99,294

 
23.6

 
DILUTED EARNINGS PER SHARE
 
$
6.18

 
$
4.85

 
27.4

 
Weighted average dilutive common shares outstanding
 
19,868
 
20,480
 
(3.0
)
 
Weighted average participating securities
 
702
 
767
 
(8.5
)
 
Total weighted average shares outstanding
 
20,570
 
21,247

 
(3.2
)
 


2

Exhibit 99.1

Group 1 Automotive, Inc.
Consolidated Balance Sheets
(Unaudited)
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
September 30, 2018
 
December 31, 2017
 
% Increase/(Decrease)
ASSETS:
 
 
 
 
 
 
CURRENT ASSETS:
 
 
 
 
 
 
Cash and cash equivalents
 
$
32,027

 
$
28,787

 
11.3

Contracts in transit and vehicle receivables, net
 
235,609

 
306,433

 
(23.1
)
Accounts and notes receivable, net
 
169,318

 
188,611

 
(10.2
)
Inventories, net
 
1,733,756

 
1,763,293

 
(1.7
)
Prepaid expenses and other current assets
 
77,996

 
42,062

 
85.4

Total current assets
 
2,248,706

 
2,329,186

 
(3.5
)
PROPERTY AND EQUIPMENT, net
 
1,350,929

 
1,318,959

 
2.4

GOODWILL AND INTANGIBLE FRANCHISE RIGHTS
 
1,245,056

 
1,198,666

 
3.9

OTHER ASSETS
 
36,175

 
24,254

 
49.2

Total assets
 
$
4,880,866

 
$
4,871,065

 
0.2

 
 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY:
 
 
 
 
 
 
CURRENT LIABILITIES:
 
 
 
 
 
 
Floorplan notes payable - credit facility and other
 
$
1,155,034

 
$
1,240,695

 
(6.9
)
Offset account related to floorplan notes payable - credit facility
 
(71,397
)
 
(86,547
)
 
(17.5
)
Floorplan notes payable - manufacturer affiliates
 
415,615

 
397,183

 
4.6

Offset account related to floorplan notes payable - manufacturer affiliates
 
(20,500
)
 
(22,500
)
 
(8.9
)
Current maturities of long-term debt and short-term financing
 
76,080

 
77,609

 
(2.0
)
Current liabilities from interest rate risk management activities
 
311

 
1,996

 
(84.4
)
Accounts payable
 
428,441

 
412,981

 
3.7

Accrued expenses
 
207,082

 
177,070

 
16.9

Total current liabilities
 
2,190,666

 
2,198,487

 
(0.4
)
5.00% SENIOR NOTES (principal of $550,000 at September 30, 2018 and December 31, 2017, respectively)
 
543,306

 
542,063

 
0.2

5.25% SENIOR NOTES (principal of $300,000 at September 30, 2018 and December 31, 2017, respectively)
 
296,587

 
296,151

 
0.1

ACQUISITION LINE
 
32,584

 
26,988

 
20.7

REAL ESTATE RELATED AND OTHER LONG-TERM DEBT, net of current maturities
 
384,541

 
405,950

 
(5.3
)
CAPITAL LEASE OBLIGATIONS RELATED TO REAL ESTATE, net of current maturities
 
47,109

 
47,032

 
0.2

DEFERRED INCOME TAXES
 
137,826

 
124,404

 
10.8

LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES
 
444

 
8,583

 
(94.8
)
OTHER LIABILITIES
 
99,457

 
97,125

 
2.4

STOCKHOLDERS' EQUITY:
 
 
 
 
 

Common stock
 
255

 
255

 

Additional paid-in capital
 
290,668

 
291,461

 
(0.3
)
Retained earnings
 
1,368,946

 
1,246,323

 
9.8

Accumulated other comprehensive loss
 
(128,894
)
 
(123,226
)
 
4.6

Treasury stock
 
(382,629
)
 
(290,531
)
 
31.7

Total stockholders' equity
 
1,148,346

 
1,124,282

 
2.1

Total liabilities and stockholders' equity
 
$
4,880,866

 
$
4,871,065

 
0.2


3

Exhibit 99.1

Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
 
September 30,
 
September 30,
 
 
 
2018 (%)
 
2017 (%)
 
2018 (%)
 
2017 (%)
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
 
 
 
 
 
 
 
Region
Geographic Market
 
 
 
 
 
 
 
 
United States
Texas
 
37.2

 
37.8

 
35.8

 
36.5

 
Oklahoma
 
6.7

 
5.7

 
6.2

 
6.2

 
California
 
5.8

 
7.0

 
6.2

 
7.6

 
Massachusetts
 
5.2

 
4.8

 
4.9

 
4.7

 
Georgia
 
4.7

 
4.4

 
4.5

 
4.6

 
Florida
 
2.9

 
2.4

 
2.6

 
2.5

 
Louisiana
 
2.2

 
1.9

 
2.0

 
2.0

 
New Hampshire
 
2.0

 
1.9

 
1.9

 
2.0

 
South Carolina
 
1.6

 
1.3

 
1.6

 
1.3

 
New Jersey
 
1.5

 
1.7

 
1.6

 
1.7

 
Kansas
 
1.4

 
1.5

 
1.4

 
1.6

 
Mississippi
 
1.2

 
1.2

 
1.2

 
1.3

 
Alabama
 
0.7

 
0.9

 
0.7

 
1.0

 
Maryland
 
0.4

 
0.3

 
0.4

 
0.4

 
New Mexico
 
0.1

 
0.1

 
0.1

 

 
 
 
73.6

 
72.9

 
71.1

 
73.4

 
 
 
 
 
 
 
 
 
 
International
United Kingdom
 
21.4

 
22.6

 
23.9

 
21.8

 
Brazil
 
5.0

 
4.5

 
5.0

 
4.8

 
 
 
100.0

 
100.0

 
100.0

 
100.0

 
 
 
 
 
 
 
 
 
NEW VEHICLE UNIT SALES BRAND MIX:
 
 
 
 
 
 
 
Toyota/Lexus
 
27.1

 
26.7

 
25.0

 
25.3

Volkswagen/Audi/Porsche
 
11.8

 
13.9

 
13.0

 
13.0

BMW/MINI
 
11.5

 
11.5

 
12.1

 
12.8

Ford/Lincoln
 
11.0

 
10.6

 
11.1

 
11.5

Honda/Acura
 
9.5

 
9.0

 
9.3

 
9.2

Nissan
 
6.8

 
7.0

 
6.5

 
7.5

Chevrolet/GMC/Buick/Cadillac
 
5.6

 
6.1

 
5.7

 
6.2

Mercedes-Benz/smart/Sprinter
 
4.2

 
3.4

 
4.7

 
3.8

Chrysler/Dodge/Jeep/RAM
 
3.9

 
3.9

 
4.0

 
3.9

Hyundai/Kia
 
4.0

 
4.2

 
3.9

 
4.0

Jaguar/Land Rover
 
1.7

 
1.6

 
1.8

 
0.8

Other
 
2.9

 
2.1

 
2.9

 
2.0

 
 
100.0

 
100.0

 
100.0

 
100.0



4

Exhibit 99.1

Group 1 Automotive, Inc.
 
Additional Information - U.S.
 
(Unaudited)
 
(Dollars in thousands, except per unit amounts)
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30,
 
 
 
2018
 
2017
 
% Increase/(Decrease)
 
REVENUES:
 
 
 
 
 
 
 
New vehicle retail sales
 
$
1,196,551

 
$
1,296,267

 
(7.7
)
 
Used vehicle retail sales
 
572,011

 
562,031

 
1.8

 
Used vehicle wholesale sales
 
40,724

 
63,363

 
(35.7
)
 
Total used
 
612,735

 
625,394

 
(2.0
)
 
Parts and service
 
289,334

 
283,915

 
1.9

 
Finance, insurance and other, net
 
101,610

 
96,383

 
5.4

 
Total
 
$
2,200,230

 
$
2,301,959

 
(4.4
)
 
GROSS MARGIN %:
 
 
 
 
 
 
 
New vehicle retail sales
 
4.8

 
5.1

 
 
 
Used vehicle retail sales
 
6.5

 
6.8

 
 
 
Used vehicle wholesale sales
 
1.0

 
(0.1
)
 
 
 
Total used
 
6.1

 
6.1

 
 
 
Parts and service
 
53.9

 
53.8

 
 
 
Finance, insurance and other, net
 
100.0

 
100.0

 
 
 
Total
 
16.0

 
15.4

 
 
 
GROSS PROFIT:
 
 
 
 
 
 
 
New vehicle retail sales
 
$
57,278

 
$
66,622

 
(14.0
)
 
Used vehicle retail sales
 
37,241

 
37,962

 
(1.9
)
 
Used vehicle wholesale sales
 
400

 
(54
)
 
840.7

 
Total used
 
37,641

 
37,908

 
(0.7
)
 
Parts and service
 
155,942

 
152,654

 
2.2

 
Finance, insurance and other, net
 
101,610

 
96,383

 
5.4

 
Total
 
$
352,471

 
$
353,567

 
(0.3
)
 
UNITS SOLD:
 
 
 
 
 
 
 
Retail new vehicles sold
 
32,058

 
35,233

 
(9.0
)
 
Retail used vehicles sold
 
28,125

 
26,304

 
6.9

 
Wholesale used vehicles sold
 
7,118

 
9,786

 
(27.3
)
 
Total used
 
35,243

 
36,090

 
(2.3
)
 
AVERAGE RETAIL SALES PRICE:
 
 
 
 
 
 
 
New vehicle retail
 
$
37,325

 
$
36,791

 
1.5

 
Used vehicle retail
 
$
20,338

 
$
21,367

 
(4.8
)
 
GROSS PROFIT PER UNIT SOLD:
 
 
 
 
 

 
New vehicle retail sales
 
$
1,787

 
$
1,891

 
(5.5
)
 
Used vehicle retail sales
 
1,324

 
1,443

 
(8.2
)
 
Used vehicle wholesale sales
 
56

 
(6
)
 
1,033.3

 
Total used
 
1,068

 
1,050

 
1.7

 
Finance, insurance and other, net (per retail unit)
 
$
1,688

 
$
1,566

 
7.8

 
OTHER:
 
 
 
 
 
 
 
Adjusted Finance, insurance and other revenue, net (1), (2)
 
$
101,610

 
$
102,933

 
(1.3
)
 
Adjusted Total Revenue (1) 
 
$
2,200,230

 
$
2,308,509

 
(4.7
)
 
Adjusted Total Gross Profit (1) 
 
$
352,471

 
$
360,117

 
(2.1
)
 
Adjusted Total Gross Margin (1) 
 
16.0

 
15.6

 
 
 
Adjusted Finance, insurance and other, net (per retail unit) (1) 
 
$
1,688

 
$
1,673

 
0.9

 
SG&A expenses
 
$
242,210

 
$
261,787

 
(7.5
)
 
Adjusted SG&A expenses (1)
 
$
249,000

 
$
252,120

 
(1.2
)
 
SG&A as % revenues
 
11.0

 
11.4

 
 
 
Adjusted SG&A as % revenues (1)
 
11.3

 
11.0

 
 
 
SG&A as % gross profit
 
68.7

 
74.0

 
 
 
Adjusted SG&A as % gross profit (1)
 
70.6

 
70.0

 
 
 
Operating margin %
 
3.3

 
3.0

 
 
 
Adjusted operating margin % (1)
 
4.1

 
4.1

 
 
 
Pretax margin %
 
2.0

 
1.8

 
 
 
Adjusted pretax margin % (1)
 
2.7

 
2.9

 
 
 

5

Exhibit 99.1

INTEREST EXPENSE:
 
 
 
 
 
 
 
Floorplan interest expense
 
$
(12,904
)
 
$
(12,014
)
 
7.4

 
Floorplan assistance
 
11,736

 
13,295

 
(11.7
)
 
Net floorplan (expense) income
 
$
(1,168
)
 
$
1,281

 
(191.2
)
 
Other interest expense, net
 
$
(17,273
)
 
$
(16,727
)
 
3.3

 
(1) See the section of this release entitled "Non-GAAP Financial Measures" and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.
(2) Finance, insurance and other revenue represents fees earned for the financing of vehicle sales transactions and from the sale of insurance and vehicle service contracts. Such amounts are reported net of estimated amounts to be charged back in the future. As a result, finance, insurance and other revenue and gross profit are the same.


6

Exhibit 99.1

Group 1 Automotive, Inc.
Additional Information - U.S.
(Unaudited)
(Dollars in thousands, except per unit amounts)
 
 
Nine Months Ended September 30,
 
 
2018
 
2017
 
% Increase/(Decrease)
REVENUES:
 
 
 
 
 
 
New vehicle retail sales
 
$
3,433,386

 
$
3,458,287

 
(0.7
)
Used vehicle retail sales
 
1,727,848

 
1,620,171

 
6.6

Used vehicle wholesale sales
 
137,507

 
200,384

 
(31.4
)
Total used
 
1,865,355

 
1,820,555

 
2.5

Parts and service
 
862,737

 
837,772

 
3.0

Finance, insurance and other, net
 
295,239

 
276,754

 
6.7

Total
 
$
6,456,717

 
$
6,393,368

 
1.0

GROSS MARGIN %:
 
 
 
 
 
 
New vehicle retail sales
 
4.9

 
5.1

 
 
Used vehicle retail sales
 
6.3

 
6.9

 
 
Used vehicle wholesale sales
 
2.5

 
(0.1
)
 
 
Total used
 
6.1

 
6.2

 
 
Parts and service
 
53.8

 
53.8

 
 
Finance, insurance and other, net
 
100.0

 
100.0

 
 
Total
 
16.1

 
15.9

 
 
GROSS PROFIT:
 
 
 
 
 
 
New vehicle retail sales
 
$
166,771

 
$
174,831

 
(4.6
)
Used vehicle retail sales
 
109,535

 
112,598

 
(2.7
)
Used vehicle wholesale sales
 
3,387

 
(170
)
 
2,092.4

Total used
 
112,922

 
112,428

 
0.4

Parts and service
 
463,894

 
450,623

 
2.9

Finance, insurance and other, net
 
295,239

 
276,754

 
6.7

Total
 
$
1,038,826

 
$
1,014,636

 
2.4

UNITS SOLD:
 
 
 
 
 
 
Retail new vehicles sold
 
91,119

 
93,533

 
(2.6
)
Retail used vehicles sold
 
83,919

 
76,435

 
9.8

Wholesale used vehicles sold
 
23,793

 
29,468

 
(19.3
)
Total used
 
107,712

 
105,903

 
1.7

AVERAGE RETAIL SALES PRICE:
 

 
 
 
 
New vehicle retail
 
$
37,680

 
$
36,974

 
1.9

Used vehicle retail
 
$
20,589

 
$
21,197

 
(2.9
)
GROSS PROFIT PER UNIT SOLD:
 
 
 
 
 
 
New vehicle retail sales
 
$
1,830

 
$
1,869

 
(2.1
)
Used vehicle retail sales
 
1,305

 
1,473

 
(11.4
)
Used vehicle wholesale sales
 
142

 
(6
)
 
2,466.7

Total used
 
1,048

 
1,062

 
(1.3
)
Finance, insurance and other, net (per retail unit)
 
$
1,687

 
$
1,628

 
3.6

OTHER:
 
 
 
 
 
 
Adjusted Finance, insurance and other revenue, net (1), (2)
 
$
295,239

 
$
283,304

 
4.2

Adjusted Total revenue (1)
 
$
6,456,717

 
$
6,399,918

 
0.9

Adjusted Total gross profit (1)
 
$
1,038,826

 
$
1,021,186

 
1.7

Adjusted Total gross margin (1)
 
16.1

 
16.0

 
 
Adjusted Finance, insurance and other, net (per retail unit) (1)
 
$
1,687

 
$
1,667

 
1.2

SG&A expenses
 
$
729,430

 
$
741,904

 
(1.7
)
Adjusted SG&A expenses (1)
 
$
748,527

 
$
733,427

 
2.1

SG&A as % revenues
 
11.3

 
11.6

 
 
Adjusted SG&A as % revenues (1)
 
11.6

 
11.5

 
 
SG&A as % gross profit
 
70.2

 
73.1

 
 
Adjusted SG&A as % gross profit (1)
 
72.1

 
71.8

 
 
Operating margin %
 
3.8

 
3.6

 
 
Adjusted operating margin % (1)
 
3.9

 
3.9

 
 
Pretax margin %
 
2.4

 
2.2

 
 
Adjusted pretax margin % (1)
 
2.5

 
2.6

 
 

7

Exhibit 99.1

INTEREST EXPENSE:
 
 
 
 
 
 
Floorplan interest expense
 
$
(38,050
)
 
$
(34,954
)
 
8.9

Floorplan assistance
 
33,692

 
35,031

 
(3.8
)
Net floorplan (expense) income
 
$
(4,358
)
 
$
77

 
(5,759.7
)
Other interest expense, net
 
$
(51,621
)
 
$
(49,571
)
 
4.1

(1) See the section of this release entitled "Non-GAAP Financial Measures" and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.
(2) Finance, insurance and other revenue represents fees earned for the financing of vehicle sales transactions and from the sale of insurance and vehicle service contracts. Such amounts are reported net of estimated amounts to be charged back in the future. As a result, finance, insurance and other revenue and gross profit are the same.

8

Exhibit 99.1

 
Group 1 Automotive, Inc.
 
Additional Information - U.K.
 
(Unaudited)
 
(Dollars in thousands, except per unit amounts)
 
 
 
Three Months Ended September 30,
 
 
2018
 
2017
 
% Increase/(Decrease)
 
Constant Currency (1) % Increase/(Decrease)
 
REVENUES:
 
 
 
 
 
 
 
 
New vehicle retail sales
$
278,046

 
$
334,772

 
(16.9
)
 
(16.1
)
 
Used vehicle retail sales
200,058

 
158,076

 
26.6

 
27.2

 
Used vehicle wholesale sales
41,696

 
38,647

 
7.9

 
8.5

 
Total used
241,754

 
196,723

 
22.9

 
23.6

 
Parts and service
53,817

 
46,783

 
15.0

 
15.6

 
Finance, insurance and other, net
12,319

 
12,448

 
(1.0
)
 
(0.2
)
 
Total
$
585,936

 
$
590,726

 
(0.8
)
 

 
GROSS MARGIN %:
 
 
 
 
 
 
 
 
New vehicle retail sales
5.4

 
5.1

 
 
 
 
 
Used vehicle retail sales
5.8

 
4.7

 
 
 
 
 
Used vehicle wholesale sales
(2.1
)
 
(0.9
)
 
 
 
 
 
Total used
4.4

 
3.6

 
 
 
 
 
Parts and service
56.7

 
57.3

 
 
 
 
 
Finance, insurance and other, net
100.0

 
100.0

 
 
 
 
 
Total
11.7

 
10.8

 
 
 
 
 
GROSS PROFIT:
 
 
 
 
 
 
 
 
New vehicle retail sales
$
15,128

 
$
17,205

 
(12.1
)
 
(10.8
)
 
Used vehicle retail sales
11,625

 
7,471

 
55.6

 
56.6

 
Used vehicle wholesale sales
(880
)
 
(347
)
 
(153.6
)
 
(148.1
)
 
Total used
10,745

 
7,124

 
50.8

 
52.1

 
Parts and service
30,530

 
26,823

 
13.8

 
14.4

 
Finance, insurance and other, net
12,319

 
12,448

 
(1.0
)
 
(0.2
)
 
Total
$
68,722

 
$
63,600

 
8.1

 
9.0

 
UNITS SOLD:
 
 
 
 
 
 
 
 
Retail new vehicles sold
9,333

 
10,909

 
(14.4
)
 
 
 
Retail used vehicles sold
8,482

 
7,011

 
21.0

 
 
 
Wholesale used vehicles sold
5,382

 
4,939

 
9.0

 
 
 
Total used
13,864

 
11,950

 
16.0

 
 
 
AVERAGE RETAIL SALES PRICE:
 
 
 
 
 
 
 
 
New vehicle retail
$
29,792

 
$
30,688

 
(2.9
)
 
(1.9
)
 
Used vehicle retail
$
23,586

 
$
22,547

 
4.6

 
5.2

 
GROSS PROFIT PER UNIT SOLD:
 
 
 
 
 
 
 
 
New vehicle retail sales
$
1,621

 
$
1,577

 
2.8

 
4.2

 
Used vehicle retail sales
1,371

 
1,066

 
28.6

 
29.4

 
Used vehicle wholesale sales
(164
)
 
(70
)
 
(134.3
)
 
(127.7
)
 
Total used
775

 
596

 
30.0

 
31.1

 
Finance, insurance and other, net (per retail unit)
$
691

 
$
695

 
(0.6
)
 
0.4

 
OTHER:
 
 
 
 
 
 
 
 
SG&A expenses
$
59,704

 
$
53,395

 
11.8

 
12.4

 
SG&A as % revenues
10.2

 
9.0

 
 
 
 
 
SG&A as % gross profit
86.9

 
84.0

 
 
 
 
 
Operating margin %
1.0

 
1.3

 
 
 
 
 
Pretax margin %
0.5

 
0.9

 
 
 
 
 
INTEREST EXPENSE:
 
 
 
 
 
 
 
 
Floorplan interest expense
$
(1,556
)
 
$
(1,336
)
 
16.5

 
17.3

 
Floorplan assistance
299

 
265

 
12.8

 
13.6

 
Net floorplan expense
$
(1,257
)
 
$
(1,071
)
 
17.4

 
18.3

 
Other interest expense, net
$
(1,693
)
 
$
(1,121
)
 
51.0

 
52.0

(1) See the section of this release entitled "Non-GAAP Financial Measures" and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.


9

Exhibit 99.1

Group 1 Automotive, Inc.
Additional Information - U.K.
(Unaudited)
(Dollars in thousands, except per unit amounts)
 
Nine Months Ended September 30,
 
2018
 
2017
 
% Increase/(Decrease)
 
Constant Currency (1) % Increase/(Decrease)
REVENUES:
 
 
 
 
 
 
 
New vehicle retail sales
$
971,085

 
$
824,827

 
17.7

 
11.3

Used vehicle retail sales
600,715

 
401,851

 
49.5

 
41.6

Used vehicle wholesale sales
134,408

 
99,604

 
34.9

 
27.5

Total used
735,123

 
501,455

 
46.6

 
38.8

Parts and service
164,954

 
120,614

 
36.8

 
29.4

Finance, insurance and other, net
42,199

 
31,260

 
35.0

 
27.9

Total
$
1,913,361

 
$
1,478,156

 
29.4

 
22.4

GROSS MARGIN %:
 
 
 
 
 
 
 
New vehicle retail sales
5.1

 
5.5

 
 
 
 
Used vehicle retail sales
5.2

 
4.9

 
 
 
 
Used vehicle wholesale sales
(1.6
)
 
(0.9
)
 
 
 
 
Total used
4.0

 
3.7

 
 
 
 
Parts and service
57.1

 
57.6

 
 
 
 
Finance, insurance and other, net
100.0

 
100.0

 
 
 
 
Total
11.2

 
11.2

 
 
 
 
GROSS PROFIT:
 
 
 
 
 
 
 
New vehicle retail sales
$
49,546

 
$
45,350

 
9.3

 
3.5

Used vehicle retail sales
31,288

 
19,579

 
59.8

 
51.4

Used vehicle wholesale sales
(2,188
)
 
(851
)
 
(157.1
)
 
(149.7
)
Total used
29,100

 
18,728

 
55.4

 
47.0

Parts and service
94,132

 
69,488

 
35.5

 
28.2

Finance, insurance and other, net
42,199

 
31,260

 
35.0

 
27.9

Total
$
214,977

 
$
164,826

 
30.4

 
23.5

UNITS SOLD:
 
 
 
 
 
 
 
Retail new vehicles sold
30,697

 
27,821

 
10.3

 
 
Retail used vehicles sold
24,818

 
18,435

 
34.6

 
 
Wholesale used vehicles sold
16,924

 
13,245

 
27.8

 
 
Total used
41,742

 
31,680

 
31.8

 
 
AVERAGE RETAIL SALES PRICE:
 
 
 
 
 
 
 
New vehicle retail
$
31,635

 
$
29,648

 
6.7

 
0.8

Used vehicle retail
$
24,205

 
$
21,798

 
11.0

 
5.2

GROSS PROFIT PER UNIT SOLD:
 
 
 
 
 
 
 
New vehicle retail sales
$
1,614

 
$
1,630

 
(1.0
)
 
(6.2
)
Used vehicle retail sales
1,261

 
1,062

 
18.7

 
12.5

Used vehicle wholesale sales
(129
)
 
(64
)
 
(101.6
)
 
(95.4
)
Total used
697

 
591

 
17.9

 
11.5

Finance, insurance and other, net (per retail unit)
$
760

 
$
676

 
12.4

 
6.5

OTHER:
 
 
 
 
 
 
 
SG&A expenses
$
181,558

 
$
137,475

 
32.1

 
24.9

Adjusted SG&A expenses (1)
$
181,558

 
$
137,187

 
32.3

 
25.2

SG&A as % revenues
9.5

 
9.3

 
 
 
 
Adjusted SG&A as % revenues (1)
9.5

 
9.3

 
 
 
 
SG&A as % gross profit
84.5

 
83.4

 
 
 
 
Adjusted SG&A as % gross profit (1)
84.5

 
83.2

 
 
 
 
Operating margin %
1.3

 
1.5

 
 
 
 
Adjusted operating margin % (1)
1.3

 
1.5

 
 
 
 
Pretax margin %
0.8

 
1.1

 
 
 
 
Adjusted pretax margin % (1)
0.8

 
1.1

 
 
 
 

10

Exhibit 99.1

INTEREST EXPENSE:
 
 
 
 
 
 
 
Floorplan interest expense
$
(4,687
)
 
$
(3,423
)
 
36.9

 
29.7

Floorplan assistance
824

 
714

 
15.4

 
9.3

Net floorplan expense
$
(3,863
)
 
$
(2,709
)
 
42.6

 
35.1

Other interest expense, net
$
(5,015
)
 
$
(2,386
)
 
110.2

 
99.7

(1) See the section of this release entitled "Non-GAAP Financial Measures" and the tables attached hereto for information regarding certain selected items that the Company believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures and their reconciliation to the most directly comparable measures as reported in accordance with U.S. GAAP.


11

Exhibit 99.1

Group 1 Automotive, Inc.
Additional Information - Brazil
(Unaudited)
(Dollars in thousands, except per unit amounts)
 
 
 
 
 
 
 
 
 
Three Months Ended September 30,
 
2018
 
2017
 
% Increase/(Decrease)
 
Constant Currency (1)  % Increase/(Decrease)
REVENUES:
 
 
 
 
 
 
 
New vehicle retail sales
$
64,901

 
$
79,202

 
(18.1
)
 
2.3

Used vehicle retail sales
20,336

 
22,931

 
(11.3
)
 
10.3

Used vehicle wholesale sales
4,150

 
2,817

 
47.3

 
84.7

Total used
24,486

 
25,748

 
(4.9
)
 
18.4

Parts and service
11,350

 
12,495

 
(9.2
)
 
13.1

Finance, insurance and other, net
2,155

 
2,162

 
(0.3
)
 
24.5

Total
$
102,892

 
$
119,607

 
(14.0
)
 
7.3

GROSS MARGIN %:
 
 
 
 
 
 
 
New vehicle retail sales
8.0

 
5.7

 
 
 
 
Used vehicle retail sales
6.3

 
7.4

 
 
 
 
Used vehicle wholesale sales
4.0

 
7.7

 
 
 
 
Total used
5.9

 
7.4

 
 
 
 
Parts and service
45.0

 
45.5

 
 
 
 
Finance, insurance and other, net
100.0

 
100.0

 
 
 
 
Total
13.5

 
11.9

 
 
 
 
GROSS PROFIT:
 
 
 
 
 
 
 
New vehicle retail sales
$
5,196

 
$
4,505

 
15.3

 
43.8