Group 1 Automotive Reports Record 2013 First-Quarter Financial Results On Strong Revenue Growth And Improved Cost Leverage

  Group 1 Automotive Reports Record 2013 First-Quarter Financial Results On
               Strong Revenue Growth And Improved Cost Leverage

PR Newswire

HOUSTON, May 2, 2013

HOUSTON, May 2, 2013 /PRNewswire/ --Group 1 Automotive, Inc.(NYSE: GPI), an
international, Fortune 500 automotive retailer, today reported adjusted
first-quarter 2013 net income of $29.2 million, a 26.5 percent increase, and
adjusted diluted earnings per common share of $1.16, a 19.6 percent increase,
on a year-over-year comparable basis for the period ended March 31, 2013.

FIRST-QUARTER 2013 CONSOLIDATED RESULTS  (on a year-over-year, comparable
basis unless otherwise noted)

  oTotal gross profit grew 15.4 percent on 18.0 percent higher revenues of
    $2.0 billion.
  oNew vehicle revenue increased 21.7 percent reflecting 18.5 percent higher
    unit sales, as same-store new vehicle unit sales grew 5.8 percent.
  oUsed vehicle retail revenue increased 13.6 percent reflecting 12 percent
    higher used retail unit sales.
  oSelling, general and administrative (SG&A) expenses as a percent of gross
    profit improved 110 basis points, to 75.4 percent, with a same-store
    improvement of 130 basis points, to 74.7 percent.
  oOperating margin expanded 10 basis points to 3.3 percent, with a
    same-store operating margin expansion of 20 basis points to 3.5 percent.
  oPretax income grew 25.4 percent to $46.8 million.
  oConsolidated effective tax rate was 37.7 percent.
  oDiluted earnings per common share increased 19.6 percent, to $1.16, on
    26.5 percent higher net income of $29.2 million, both record first-quarter
    results for the company.

CORPORATE DEVELOPMENT
As previously announced during the first quarter, Group 1 acquired four
franchises in the United Kingdom and 22 franchises in Brazil with total
estimated annual revenues of approximately $827.0 million and disposed of a
franchise in California that generated trailing-12-month revenues of $35.0
million.

"I am pleased with Group 1's first-quarter operating results including
significant revenue growth and solid expense leverage that delivered record
first-quarter earnings," said Earl J. Hesterberg, Group 1's president and
chief executive officer. "We also significantly expanded the scale of our U.K.
business and entered the rapidly-growing Brazilian automotive market. This is
an exciting time for our company – an unprecedented growth phase which should
support strong returns for our shareholders over time."

SEGMENT RESULTS FOR FIRST-QUARTER 2013 (on a year-over-year basis unless
otherwise noted)

United States:
Group 1's U.S. revenues were $1.7 billion, an increase of 8.5 percent. The
revenue growth was primarily explained by unit sales increases of 7.4 percent
in new vehicles and 6.1 percent in retail used vehicles, as well as an
increase of 5.3 percent in parts and service revenue. The higher revenue drove
gross profit growth of 8.8 percent, reflecting the higher new and used retail
volumes, expanded parts and service margins of 100 basis points and a finance
and insurance increase of 18.9 percent, or $136, to $1,339 per retail unit,
which is another all-time any-quarter record for the company. The gross profit
increase was partially offset by a reduction in wholesale used vehicle gross
profit per unit.

On a comparable basis, SG&A expenses as a percent of gross profit improved 160
basis points to 74.8 percent, operating margin expanded to 3.6 percent and
pretax margin increased to 2.6 percent. Group 1's U.S. operations accounted
for 87.7 percent of total revenues, 90.8 percent of total gross profit and
93.9 percent of the company's adjusted pretax income.

United Kingdom:
Group 1's U.K. operations, which include significant acquisitions, accounted
for 8.7 percent of total revenues, 6.4 percent of total gross profit and 4.6
percent of the company's adjusted pretax income. Gross profit grew 101.6
percent on 117.9 percent higher revenues of $171.1 million. Revenue growth was
primarily driven by 146.5 percent and 102.3 percent increases in new and used
vehicle retail unit sales, respectively. The gross profit increase was driven
by parts and service growth of 77.2 percent and a finance and insurance
increase of 159.0 percent, or $73, to $604 per retail unit, on the higher
retail unit sales.

On a comparable basis, SG&A expenses as a percent of gross profit increased
370 basis points to 82.9 percent, with the increase more than explained by the
new acquisitions, operating margin was 1.6 percent and pretax margin was 1.3
percent.

Brazil:
Group 1's Brazilian operations were acquired on Feb. 28. The contribution of
approximately one month of results accounted for 3.6 percent of total
revenues, 2.8 percent of total gross profit and 1.5 percent of the company's
adjusted pretax income. Gross profit was $8.4 million on revenues of $71.0
million. New vehicle sales was the primary revenue contributor at 74.4
percent, while new vehicles and parts and service were the primary gross
profit contributors at 52.8 percent and 32.4 percent, respectively.

On an adjusted basis, SG&A expenses as a percent of gross profit was 80.0
percent, operating margin was 2.0 percent and pretax margin was 1.0 percent.
The adjusted net income generated by the Brazilian operations covered the
dilutive effect of the shares issued for the transaction.

FIRST-QUARTER EARNINGS CONFERENCE CALL
Group 1's senior management will host a conference call today at 10 a.m. ET to
discuss the first-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/news/events.aspx. 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: 1.877.317.6789
International: 1.412.317.6789
Conference ID: 10028096

A telephonic replay will be available following the call through May 9 at 9
a.m. ET by dialing:

Domestic: 1.877.344.7529
International: 1.412.317.0088
Conference ID: 10028096

About Group 1 Automotive, Inc.
Group 1 owns and operates 143 automotive dealerships, 182 franchises, and 36
collision centers in the United States, the United Kingdom and Brazil that
offer 35 brands of automobiles. Through its dealerships, the company sells new
and used cars and light trucks; arranges related vehicle financing, service
and insurance contracts; provides automotive maintenance and repair services;
and sells vehicle parts.

Group 1 Automotive can be reached on the Internet at www.group1auto.com.

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 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.

Investor Contacts:
Kim Paper Canning
Manager, Investor Relations
Group 1 Automotive, Inc.
713-647-5741 | kpaper@group1auto.com

Media Contacts:
Pete DeLongchamps
V.P. Financial Services and Manufacturer Relations
Group 1 Automotive, Inc.
713-647-5770 | pdelongchamps@group1auto.com
or
Clint Woods
Pierpont Communications, Inc.
713-627-2223 | cwoods@piercom.com





Group 1 Automotive, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
                                  Three Months Ended March 31,
                                  2013              2012              % Change
REVENUES:
New vehicle retail sales          $ 1,110,235      $   912,595     21.7
Used vehicle retail sales         471,399           414,974           13.6
Used vehicle wholesale sales      74,551            66,857            11.5
Parts and service                 237,510           213,101           11.5
Finance and insurance             70,137            57,218            22.6
Total revenues                    1,963,832         1,664,745         18.0
COST OF SALES:
New vehicle retail sales          1,047,599         859,775           21.8
Used vehicle retail sales         431,123           378,577           13.9
Used vehicle wholesale sales      72,129            64,153            12.4
Parts and service                 112,492           101,816           10.5
Total cost of sales               1,663,343         1,404,321         18.4
GROSS PROFIT                      300,489           260,424           15.4
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES           233,433           199,112           17.2
DEPRECIATION AND
AMORTIZATION EXPENSE              8,413             7,236             16.3
ASSET IMPAIRMENTS                 -                 101               (100.0)
OPERATING INCOME                  58,643            53,975            8.6
OTHER EXPENSE:
Floorplan interest expense        (9,364)           (7,619)           22.9
Other interest expense, net       (9,242)           (9,040)           2.2
Other expense, net                (789)             -                 -
INCOME BEFORE INCOME TAXES        39,248            37,316            5.2
PROVISION FOR INCOME TAXES        (17,130)          (14,199)          20.6
NET INCOME                        $    22,118    $    23,117    (4.3)
DILUTED INCOME PER SHARE          $      0.88  $      0.97  (9.3)
Weighted average dilutive common  24,113            22,532            7.0
shares outstanding
Weighted average participating    1,072             1,209             (11.3)
securities
Total weighted average shares     25,185            23,741            6.1
outstanding





Group 1 Automotive, Inc.
Consolidated Balance Sheets
(Dollars in thousands)
                                          March 31,    December 31,
                                          2013         2012           % Change
ASSETS:
CURRENT ASSETS:
Cash and cash equivalents                 $       $        281.3
                                          17,729      4,650
Contracts in transit and vehicle          190,879      204,396        (6.6)
receivables, net
Accounts and notes receivable, net        131,662      111,228        18.4
Inventories, net                          1,353,120    1,194,288      13.3
Deferred income taxes                     19,967       19,750         1.1
Prepaid expenses and other current        25,698       31,869         (19.4)
assets
Total current assets                      1,739,055    1,566,181      11.0
PROPERTY AND EQUIPMENT, net               699,940      667,768        4.8
GOODWILL AND INTANGIBLE FRANCHISE RIGHTS  935,918      778,442        20.2
OTHER ASSETS                              20,820       10,624         96.0
Total assets                              $         $           12.3
                                          3,395,733    3,023,015
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES:
Floorplan notes payable - credit          $         $          3.6
facility                                  1,004,165    968,959
Offset account related to floorplan       (59,245)     (112,261)      (47.2)
notes payable - credit facility
Floorplan notes payable - manufacturer    288,808      211,965        36.3
affiliates
Current maturities of long-term debt and  37,209       31,358         18.7
short-term financing
Accounts payable                          255,336      167,439        52.5
Accrued expenses                          136,914      128,118        6.9
Total current liabilities                 1,663,187    1,395,578      19.2
2.25% CONVERTIBLE SENIOR NOTES
(aggregate principal of$182,753 at       154,299      152,363        1.3
March 31, 2013 and December 31, 2012)
3.00% CONVERTIBLE SENIOR NOTES
(aggregate principal of$115,000 at       81,578       80,706         1.1
March 31, 2013 and December 31, 2012)
MORTGAGE FACILITY, net of current         47,402       53,643         (11.6)
maturities
OTHER REAL ESTATE RELATED AND LONG-TERM   227,571      232,285        (2.0)
DEBT, net of current maturities
CAPITAL LEASE OBLIGATIONS RELATED TO      38,889       36,019         8.0
REAL ESTATE, net of current maturities
DEFERRED INCOME TAXES                     105,152      94,130         11.7
LIABILITIES FROM INTEREST RATE RISK       40,379       43,089         (6.3)
MANAGEMENT ACTIVITIES
OTHER LIABILITIES                         44,440       42,413         4.8
COMMITMENTS AND CONTINGENCIES
TEMPORARY EQUITY - REDEEMABLE EQUITY
PORTION OF                                31,679       32,505         (2.5)

THE 3.00% CONVERTIBLE SENIOR NOTES
STOCKHOLDERS' EQUITY:
Common stock                              259          258            0.4
Additional paid-in capital                363,511      332,837        9.2
Retained earnings                         696,366      677,863        2.7
Accumulated other comprehensive loss      (38,819)     (33,057)       17.4
Treasury stock                            (60,160)     (117,617)      (48.9)
Total stockholders' equity                961,157      860,284        11.7
Total liabilities and stockholders'       $         $           12.3
equity                                    3,395,733    3,023,015





Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
                                         Three Months Ended
                                         March 31,
                                         2013 (%)  2012 (%)
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
Region             Geographic Market
East               Massachusetts         6.4       10.6
                   New Jersey            4.8       5.1
                   Georgia               4.3       3.4
                   New York              2.9       3.4
                   Louisiana             2.5       2.8
                   New Hampshire         2.3       2.8
                   Mississippi           1.8       2.2
                   South Carolina        1.6       1.7
                   Florida               1.4       0.7
                   Alabama               0.9       1.1
                   Maryland              0.6       0.7
                                         29.5      34.5
West               Texas                 34.2      38.0
                   California            13.4      14.6
                   Oklahoma              7.4       7.7
                   Kansas                2.5       1.1
                                         57.5      61.4
International      United Kingdom        8.5       4.1
                   Brazil                4.5       -
                                         100.0     100.0
NEW VEHICLE UNIT SALES BRAND MIX:
Toyota/Scion/Lexus                       27.6      30.7
Honda/Acura                              12.3      10.9
Ford/Lincoln                             11.5      10.3
Nissan/Infiniti                          10.6      13.1
BMW/MINI                                 10.3      10.8
Volkswagen/Audi/Porsche                  6.9       4.0
GM/Chevrolet/GMC/Buick/Cadillac          5.3       6.2
Mercedes Benz/smart/Sprinter             4.5       4.7
Hyundai/Kia                              4.5       2.6
Chrysler/Dodge/Jeep/RAM                  4.3       4.5
Other                                    2.2       2.2
                                         100.0     100.0





Group 1 Automotive, Inc.
Additional Information - U.S.
(Unaudited)
(Dollars in thousands, except per unit amounts)
                             Three Months Ended March 31,
                             2013                2012                 % Change
REVENUES:
New vehicle retail sales     $     962,633   $    872,989     10.3
Used vehicle retail sales    418,339             392,273              6.6
Used vehicle wholesale       57,669              59,418               (2.9)
sales
Total used                   476,008             451,691              5.4
Parts and service            216,354             205,385              5.3
Finance and insurance        66,792              56,154               18.9
Total                       $    1,721,787   $   1,586,219      8.5
GROSS MARGIN %:
New vehicle retail sales     5.4                 5.7
Used vehicle retail sales    9.0                 9.0
Used vehicle wholesale       3.7                 4.4
sales
Total used                   8.3                 8.4
Parts and service            53.1                52.1
Finance and insurance        100.0               100.0
Total                        15.9                15.8
GROSS PROFIT:
New vehicle retail sales     $     51,582   $     49,766     3.6
Used vehicle retail sales    37,619              35,336               6.5
Used vehicle wholesale       2,125               2,600                (18.3)
sales
Total used                   39,744              37,936               4.8
Parts and service            114,823             107,061              7.3
Finance and insurance        66,793              56,154               18.9
Total                       $     272,942   $    250,917      8.8
UNITS SOLD:
Retail new vehicles sold     28,778              26,783               7.4
Retail used vehicles sold    21,116              19,895               6.1
Wholesale used vehicles      9,657               9,304                3.8
sold
Total used                   30,773              29,199               5.4
AVERAGE RETAIL SALES PRICE:
New vehicle retail           $     33,450   $     32,595     2.6
Used vehicle retail          $     19,811   $     19,717     0.5
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales     $      1,792  $      1,858    (3.6)
Used vehicle retail sales    1,782               1,776                0.3
Used vehicle wholesale       220                 279                  (21.1)
sales
Total used                   1,292               1,299                (0.5)
Finance and insurance (per   $      1,339  $      1,203    11.3
retail unit)
OTHER: ^(1)
SG&A expenses                $     204,091   $    191,578     6.5
SG&A as % revenues           11.9                12.1
SG&A as % gross profit       74.8                76.4
Operating margin %           3.6                 3.3
Pretax margin %              2.6                 2.3
INTEREST EXPENSE:
Floorplan interest           $      8,296  $      7,482   10.9
Floorplan assistance         (8,173)             (7,414)              10.2
Net floorplan expense        $            $            80.9
                             123                 68
 Other Interest   $             $       8,919  1.4
expense, net                 9,041

      These amounts have been adjusted to exclude the impact of certain items
      to provide additional information regarding the performance of our
(1)   operations and improve period-to-period comparability. Refer to our
      Reconciliation of Certain Non-GAAP Financial Measures for a description
      of the aforementioned adjustments.





Group 1 Automotive, Inc.
Additional Information - U.K.
(Unaudited)
(Dollars in thousands, except per unit amounts)
                               Three Months Ended March 31,
                               2013               2012                % Change
REVENUES:
New vehicle retail sales       $    94,824    $     39,607   139.4
Used vehicle retail sales      44,965             22,701              98.1
Used vehicle wholesale sales   13,765             7,439               85.0
Total used                     58,730             30,140              94.9
Parts and service              14,771             7,716               91.4
Finance and insurance          2,753              1,063               159.0
Total                         $    171,078    $     78,526   117.9
GROSS MARGIN %:
New vehicle retail sales       7.0                7.7
Used vehicle retail sales      4.9                4.7
Used vehicle wholesale sales   0.6                1.4
Total used                     3.9                3.9
Parts and service              50.7               54.7
Finance and insurance          100.0              100.0
Total                          11.2               12.1
GROSS PROFIT:
New vehicle retail sales       $     6,632   $      3,056   117.0
Used vehicle retail sales      2,217              1,061               109.0
Used vehicle wholesale sales   84                 103                 (18.4)
Total used                     2,301              1,164               97.7
Parts and service              7,484              4,224               77.2
Finance and insurance          2,753              1,063               159.0
Total                         $    19,170    $      9,507   101.6
UNITS SOLD:
Retail new vehicles sold       2,827              1,147               146.5
Retail used vehicles sold      1,728              854                 102.3
Wholesale used vehicles sold   1,443              690                 109.1
Total used                     3,171              1,544               105.4
AVERAGE RETAIL SALES PRICE:
New vehicle retail             $    33,542    $     34,531    (2.9)
Used vehicle retail            $    26,021    $     26,582    (2.1)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales       $     2,346   $      2,664   (11.9)
Used vehicle retail sales      1,283              1,242               3.3
Used vehicle wholesale sales   58                 149                 (61.1)
Total used                     726                754                 (3.7)
Finance and insurance (per     $       604  $       531  13.7
retail unit)
OTHER: ^(1)
SG&A expenses                  $     15,894   $      7,534   111.0
SG&A as % revenues             9.3                9.6
SG&A as % gross profit         82.9               79.2
Operating margin %             1.6                1.9
Pretax margin %                1.3                1.6
INTEREST EXPENSE:
Floorplan interest             $       306  $       137  123.4
Floorplan assistance           -                  -
Net floorplan expense          $       306  $       137  123.4
 Other Interest     $       213  $       121  76.0
expense, net

      These amounts have been adjusted to exclude the impact of certain items
      to provide additional information regarding the performance of our
(1)   operations and improve period-to-period comparability. Refer to our
      Reconciliation of Certain Non-GAAP Financial Measures for a description
      of the aforementioned adjustments.





Group 1 Automotive, Inc.
Additional Information - Brazil
(Unaudited)
(Dollars in thousands, except per unit amounts)
                                          Three Months
                                          Ended
                                          March 31,
                                          2013
REVENUES:
New vehicle retail sales                  52,778
Used vehicle retail sales                 8,095
Used vehicle wholesale sales              3,117
Total used                                11,212
Parts and service                         6,385
Finance and insurance                     592
Total                                    $     70,967
GROSS MARGIN %:
New vehicle retail sales                  8.4
Used vehicle retail sales                 5.4
Used vehicle wholesale sales              6.8
Total used                                5.8
Parts and service                         42.4
Finance and insurance                     100.0
Total                                     11.8
GROSS PROFIT:
New vehicle retail sales                  $      4,422
Used vehicle retail sales                 440
Used vehicle wholesale sales              212
Total used                                652
Parts and service                         2,710
Finance and insurance                     592
Total                                    $      8,376
UNITS SOLD:
Retail new vehicles sold                  1,491
Retail used vehicles sold                 394
Wholesale used vehicles sold              235
Total used                                629
AVERAGE RETAIL SALES PRICE:
New vehicle retail                        $     35,398
Used vehicle retail                       $     20,546
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales                  $      2,966
Used vehicle retail sales                 1,117
Used vehicle wholesale sales              902
Total used                                1,037
Finance and insurance (per retail unit)   $       314
OTHER: ^(1)
SG&A expenses                             $      6,702
SG&A as % revenues                        9.4
SG&A as % gross profit                    80.0
Operating margin %                        2.0
Pretax margin %                           1.0
INTEREST EXPENSE:
Floorplan interest                        $       762
Floorplan assistance                      -
Net floorplan expense                     $       762
 Other Interest expense, net  $       (12)

    These amounts have been adjusted to exclude the impact of certain items to
    provide additional information regarding the performance of our operations
(1) and improve period-to-period comparability. Refer to our Reconciliation of
    Certain Non-GAAP Financial Measures for a description of the
    aforementioned adjustments.





Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
(Dollars in thousands, except per unit amounts)
                                  Three Months Ended March 31,
                                  2013             2012               % Change
REVENUES:
New vehicle retail sales          $            $             21.7
                                  1,110,235       912,595
Used vehicle retail sales         471,399          414,974            13.6
Used vehicle wholesale sales      74,551           66,857             11.5
Total used                        545,950          481,831            13.3
Parts and service                 237,510          213,101            11.5
Finance and insurance             70,137           57,218             22.6
Total                            $            $              18.0
                                  1,963,832       1,664,745
GROSS MARGIN %:
New vehicle retail sales          5.6              5.8
Used vehicle retail sales         8.5              8.8
Used vehicle wholesale sales      3.2              4.0
Total used                        7.8              8.1
Parts and service                 52.6             52.2
Finance and insurance             100.0            100.0
Total                             15.3             15.6
GROSS PROFIT:
New vehicle retail sales          $          $            18.6
                                  62,636          52,820
Used vehicle retail sales         40,276           36,397             10.7
Used vehicle wholesale sales      2,422            2,704              (10.4)
Total used                        42,698           39,101             9.2
Parts and service                 125,018          111,285            12.3
Finance and insurance             70,137           57,218             22.6
Total                            $           $             15.4
                                  300,489         260,424
UNITS SOLD:
Retail new vehicles sold          33,096           27,930             18.5
Retail used vehicles sold         23,238           20,749             12.0
Wholesale used vehicles sold      11,335           9,994              13.4
Total used                        34,573           30,743             12.5
AVERAGE RETAIL SALES PRICE:
New vehicle retail                $          $            2.7
                                  33,546          32,674
Used vehicle retail               $          $            1.4
                                  20,286          20,000
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales          $         $           0.1
                                  1,893           1,891
Used vehicle retail sales         1,733            1,754              (1.2)
Used vehicle wholesale sales      214              271                (21.0)
Total used                        1,235            1,272              (2.9)
Finance and insurance(per        $         $           6.0
retail unit)                      1,245           1,175
OTHER: ^(1)
SG&A expenses                     $          $             13.8
                                  226,687          199,112
SG&A as % revenues                11.5             12.0
SG&A as % gross profit            75.4             76.5
Operating margin %                3.3              3.2
Pretax margin %                   2.4              2.2
INTEREST EXPENSE:
Floorplan interest                $         $           22.9
                                  9,364           7,619
Floorplan assistance              (8,173)          (7,414)            10.2
Net floorplan expense             $         $          481.0
                                  1,191           205
 Other Interest        $         $           2.2
expense, net                      9,242           9,040

      These amounts have been adjusted to exclude the impact of certain items
      to provide additional information regarding the performance of our
(1)   operations and improve period-to-period comparability. Refer to our
      Reconciliation of Certain Non-GAAP Financial Measures for a description
      of the aforementioned adjustments.





Group 1 Automotive, Inc.
Additional Information - Same Store^(1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
                               Three Months Ended March 31,
                               2013               2012                % Change
REVENUES:
New vehicle retail sales       $     967,330  $     889,162   8.8
Used vehicle retail sales      420,466            404,965             3.8
Used vehicle wholesale sales   62,157             64,390              (3.5)
Total used                     482,623            469,355             2.8
Parts and service              219,641            208,427             5.4
Finance and insurance          65,464             56,089              16.7
Total                         $   1,735,058   $   1,623,033    6.9
GROSS MARGIN %:
New vehicle retail sales       5.4                5.8
Used vehicle retail sales      8.6                8.8
Used vehicle wholesale sales   3.5                4.1
Total used                     8.0                8.2
Parts and service              52.8               52.2
Finance and insurance          100.0              100.0
Total                          15.7               15.7
GROSS PROFIT:
New vehicle retail sales       $     52,281  $      51,563  1.4
Used vehicle retail sales      36,291             35,613              1.9
Used vehicle wholesale sales   2,175              2,666               (18.4)
Total used                     38,466             38,279              0.5
Parts and service              115,991            108,796             6.6
Finance and insurance          65,464             56,089              16.7
Total                         $    272,202   $     254,727   6.9
UNITS SOLD:
Retail new vehicles sold       28,635             27,076              5.8
Retail used vehicles sold      20,670             20,193              2.4
Wholesale used vehicles sold   9,753              9,518               2.5
Total used                     30,423             29,711              2.4
AVERAGE RETAIL SALES PRICE:
New vehicle retail             $     33,781  $      32,839  2.9
Used vehicle retail            $     20,342  $      20,055  1.4
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales       $             $             (4.1)
                               1,826             1,904
Used vehicle retail sales      1,756              1,764               (0.5)
Used vehicle wholesale sales   223                280                 (20.4)
Total used                     1,264              1,288               (1.9)
Finance and insurance(per     $             $             11.9
retail unit)                   1,328             1,187
OTHER: ^(2)
SG&A expenses                  $    203,401   $     193,495   5.1
SG&A as % revenues             11.7               11.9
SG&A as % gross profit         74.7               76.0
Operating margin %^           3.5                3.3

     Same store amounts include the results for the identical months in each
     period presented in the comparison, commencing with the first full month
^(1) 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.
     These amounts have been adjusted to exclude the impact of certain items
     to provide additional information regarding the performance of our
^(2) operations and improve period-to-period comparability. Refer to our
     Reconciliation of Certain Non-GAAP Financial Measures for a description
     of the aforementioned adjustments.







Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - U.S.
(Unaudited)
(Dollars in thousands, except per share amounts)
                                  Three Months Ended March 31,
                                  2013            2012            % Change
SG&A RECONCILIATION:
  As reported                     $   209,484  $   191,578  9.3
   Pre-tax adjustments:
  Acquisition costs               (5,159)         -
  Catastrophic events             (808)           -
  Gain on dealership disposition 574             -
  Adjusted SG&A ^(1)              $   204,091  $   191,578  6.5
SG&A AS % REVENUES:
  Unadjusted                      12.2            12.1
  Adjusted ^(1)                   11.9            12.1
SG&A AS % OF GROSS PROFIT:
  Unadjusted                      76.8            76.4
  Adjusted ^(1)                   74.8            76.4
OPERATING MARGIN %
  Unadjusted                      3.2             3.3
  Adjusted ^(1), (2)              3.6             3.3
PRETAX MARGIN %:
  Unadjusted                      2.2             2.3
  Adjusted ^(1), (2)              2.6             2.3

    We have included certain non-GAAP financial measures as defined under SEC
    rules, which exclude certain items.These adjusted measures are not
    measures of financial performance under GAAP. As required by SEC rules,
    we provide reconciliations of these adjusted measures to the most directly
(1) comparable GAAP measures. We believe that these adjusted financial
    measures are relevant and useful to investors because they improve the
    transparency of our disclosure, provide a meaningful presentation of
    results from our core business operations and improve period-to-period
    comparability of our results from our core business operations.
(2) Excludes the impact of SG&A reconciling items above.





Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - U.K.
(Unaudited)
(Dollars in thousands, except per share amounts)
                           Three Months Ended March 31,
                           2013          2012             % Change
SG&A RECONCILIATION:
   As reported             $   16,036  $     7,534  112.8
    Pre-tax adjustments:
   Acquisition costs       (142)         -
   Adjusted SG&A ^(1)      $   15,894  $     7,534  111.0
SG&A AS % REVENUES:
   Unadjusted              9.4           9.6
   Adjusted ^(1)           9.3           9.6
SG&A AS % OF GROSS PROFIT:
   Unadjusted              83.7          79.2
   Adjusted ^(1)           82.9          79.2
OPERATING MARGIN %
   Unadjusted              1.5           1.9
   Adjusted ^(1), (2)      1.6           1.9
PRETAX MARGIN %:
   Unadjusted              1.2           1.6
   Adjusted ^(1), (2)      1.3           1.6

    We have included certain non-GAAP financial measures as defined under SEC
    rules, which exclude certain items. These adjusted measures are not
    measures of financial performance under GAAP. As required by SEC rules,
    we provide reconciliations of these adjusted measures to the most directly
(1) comparable GAAP measures. We believe that these adjusted financial
    measures are relevant and useful to investors because they improve the
    transparency of our disclosure, provide a meaningful presentation of
    results from our core business operations and improve period-to-period
    comparability of our results from our core business operations.
(2) Excludes the impact of SG&A reconciling items above.





Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP

Financial Measures - Brazil
(Unaudited)
(Dollars in thousands, except per share amounts)
                              Three Months
                              Ended
                              March 31,
                              2013
SG&A RECONCILIATION:
     As reported              $      7,913
      Pre-tax adjustments:
     Acquisition costs        (1,211)
     Adjusted SG&A ^(1)       $      6,702
SG&A AS % REVENUES:
     Unadjusted               11.2
     Adjusted ^(1)            9.4
SG&A AS % OF GROSS PROFIT:
     Unadjusted               94.5
     Adjusted ^(1)            80.0
OPERATING MARGIN %
     Unadjusted               0.3
     Adjusted ^(1), (2)       2.0
PRETAX MARGIN %:
     Unadjusted               (1.8)
     Adjusted ^(1), (3)       1.0

    We have included certain non-GAAP financial measures as defined under SEC
    rules, which exclude certain items.These adjusted measures are not
    measures of financial performance under GAAP. As required by SEC rules,
    we provide reconciliations of these adjusted measures to the most directly
(1) comparable GAAP measures. We believe that these adjusted financial
    measures are relevant and useful to investors because they improve the
    transparency of our disclosure, provide a meaningful presentation of
    results from our core business operations and improve period-to-period
    comparability of our results from our core business operations.
(2) Excludes the impact of SG&A reconciling items above.
(3) Excludes the impact of SG&A reconciling items above, as well as the other
    expense of $789.





Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - Consolidated
(Unaudited)
(Dollars in thousands, except per share amounts)
                                         Three Months Ended March 31,
NET INCOME RECONCILIATION:               2013         2012            % Change
    As reported                          $        $   23,117    (4.3)
                                         22,118
     After-tax adjustments:
    Acquisition costs^(2)                4,639        -
    Income tax effect of non-deductible  2,329        -
    acquisition costs
    Catastrophic events ^(3)             504          -
    Gain on dealership disposition ^(4)  (356)        -
    Adjusted net income ^(1)             $        $   23,117   26.5
                                         29,234
ADJUSTED NET INCOME ATTRIBUTABLE TO
DILUTED COMMON SHARES RECONCILIATION:
    Adjusted net income                  $        $   23,117   26.5
                                         29,234
    Less: Adjusted earnings allocated to 1,233        1,165           5.8
    participating securities
    Adjusted net income available to     $        $   21,952   27.6
    diluted common shares                28,001
DILUTED INCOME PER COMMON SHARE
RECONCILIATION:
    As reported                          $       $     0.97  (9.3)
                                         0.88
     After-tax adjustments:
    Acquisition costs                    0.18         -
    Income tax effect of non-deductible  0.09
    acquisition costs
    Catastrophic events                  0.02         -
    Gain on dealership disposition      (0.01)       -
    Adjusted diluted income per share    $       $     0.97  19.6
    ^(1)                                 1.16
SG&A RECONCILIATION:
    As reported                          $         $  199,112    17.2
                                         233,433
     Pre-tax adjustments:
    Acquisition costs                    (6,512)      -
    Catastrophic events                  (808)        -
    Gain on dealership disposition      574          -
    Adjusted SG&A ^(1)                   $         $  199,112    13.8
                                         226,687
SG&A AS % REVENUES:
    Unadjusted                           11.9         12.0
    Adjusted ^(1)                        11.5         12.0
SG&A AS % OF GROSS PROFIT:
    Unadjusted                           77.7         76.5
    Adjusted ^(1)                        75.4         76.5
OPERATING MARGIN %
    Unadjusted                           3.0          3.2
    Adjusted ^(1), (5)                   3.3          3.2
PRETAX MARGIN %:
    Unadjusted                           2.0          2.2
    Adjusted ^(1), (7)                   2.4          2.2
SAME STORE SG&A RECONCILIATION:
    As reported
     Pre-tax adjustments:               $         $   193,495   8.3
                                         209,510
    Acquisition costs                    (5,301)      -
    Catastrophic events                  (808)        -
    Adjusted Same Store SG&A ^(1)        $         $   193,495   5.1
                                         203,401
SAME STORE SG&A AS % REVENUES:
    Unadjusted                           12.1         11.9
    Adjusted ^(1)                        11.7         11.9
SAME STORE SG&A AS % OF GROSS PROFIT:
    Unadjusted                           77.0         76.0
    Adjusted ^(1)                        74.7         76.0
SAME STORE OPERATING MARGIN %:
    Unadjusted                           3.2          3.3
    Adjusted ^(1), (6)                   3.5          3.3

    We have included certain non-GAAP financial measures as defined under SEC
    rules, which exclude certain items.These adjusted measures are not
    measures of financial performance under GAAP. As required by SEC rules,
    we provide reconciliations of these adjusted measures to the most directly
(1) comparable GAAP measures. We believe that these adjusted financial
    measures are relevant and useful to investors because they improve the
    transparency of our disclosure, provide a meaningful presentation of
    results from our core business operations and improve period-to-period
    comparability of our results from our core business operations.
    Adjustment is net of tax benefit of $2,394 for the three months ended
(2) March 31, 2013, calculated utilizing the applicable federal and state tax
    rates for the adjustment.
    Adjustment is net of tax benefit of $304 for the three months ended March
(3) 31, 2013, calculated utilizing the applicable federal and state tax rates
    for the adjustment.
    Adjustment is net of tax provision of $218 for the three months ended
(4) March 31, 2013, calculated utilizing the applicable federal and state tax
    rates for the adjustment.
(5) Excludes the impact of SG&A reconciling items above.
    Excludes the impact of Same Store SG&A reconciling items. Adjusted Same
(6) Store Operating Income was $61,113 and $54,081 for the periods presented
    respectively.
(7) Excludes the impact of SG&A reconciling items above, as well as the other
    expense of $789.

SOURCE Group 1 Automotive, Inc.

Website: http://www.group1auto.com
 
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