|
|
|
|
|
|
þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
|
|
|
|
Large accelerated filer
|
þ
|
|
¨
|
Accelerated filer
|
|
|
|
||
Non-accelerated filer
|
¨
|
(Do not check if a smaller reporting company)
|
¨
|
Smaller reporting company
|
|
|
|
|
||
Item 1.
|
||
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
|
|
|
||
Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 6.
|
||
|
|
September 30, 2014
|
|
December 31, 2013
|
||||
|
|
(Unaudited)
|
||||||
|
(In thousands, except per share amounts)
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
50,652
|
|
|
$
|
20,215
|
|
Contracts-in-transit and vehicle receivables, net
|
|
190,641
|
|
|
225,156
|
|
||
Accounts and notes receivable, net
|
|
138,735
|
|
|
135,058
|
|
||
Inventories, net
|
|
1,490,520
|
|
|
1,542,318
|
|
||
Deferred income taxes
|
|
17,137
|
|
|
21,150
|
|
||
Prepaid expenses and other current assets
|
|
41,570
|
|
|
24,041
|
|
||
Total current assets
|
|
1,929,255
|
|
|
1,967,938
|
|
||
PROPERTY AND EQUIPMENT, net
|
|
859,339
|
|
|
796,356
|
|
||
GOODWILL
|
|
824,996
|
|
|
737,303
|
|
||
INTANGIBLE FRANCHISE RIGHTS
|
|
335,670
|
|
|
301,505
|
|
||
OTHER ASSETS
|
|
13,249
|
|
|
16,376
|
|
||
Total assets
|
|
$
|
3,962,509
|
|
|
$
|
3,819,478
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
CURRENT LIABILITIES:
|
|
|
|
|
||||
Floorplan notes payable - credit facility and other
|
|
$
|
1,077,097
|
|
|
$
|
1,143,104
|
|
Offset account related to floorplan notes payable - credit facility
|
|
(37,516
|
)
|
|
(56,198
|
)
|
||
Floorplan notes payable - manufacturer affiliates
|
|
293,846
|
|
|
346,572
|
|
||
Offset account related to floorplan notes payable - manufacturer affiliates
|
|
(25,000
|
)
|
|
—
|
|
||
Current maturities of long-term debt and short-term financing
|
|
41,021
|
|
|
36,225
|
|
||
Accounts payable
|
|
292,971
|
|
|
254,930
|
|
||
Accrued expenses
|
|
160,220
|
|
|
140,543
|
|
||
Total current liabilities
|
|
1,802,639
|
|
|
1,865,176
|
|
||
LONG-TERM DEBT, net of current maturities
|
|
938,499
|
|
|
663,689
|
|
||
DEFERRED INCOME TAXES
|
|
148,304
|
|
|
152,291
|
|
||
LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES
|
|
23,483
|
|
|
26,078
|
|
||
OTHER LIABILITIES
|
|
64,259
|
|
|
47,975
|
|
||
COMMITMENTS AND CONTINGENCIES (NOTE 11)
|
|
|
|
|
||||
TEMPORARY EQUITY - Redeemable equity portion of the 3.00% Convertible Senior Notes
|
|
—
|
|
|
29,094
|
|
||
STOCKHOLDERS’ EQUITY:
|
|
|
|
|
||||
Preferred stock, $0.01 par value, 1,000 shares authorized; none issued or outstanding
|
|
—
|
|
|
—
|
|
||
Common stock, $0.01 par value, 50,000 shares authorized; 25,761 and 25,746 issued, respectively
|
|
258
|
|
|
257
|
|
||
Additional paid-in capital
|
|
286,354
|
|
|
368,641
|
|
||
Retained earnings
|
|
838,174
|
|
|
776,101
|
|
||
Accumulated other comprehensive loss
|
|
(59,500
|
)
|
|
(51,677
|
)
|
||
Treasury stock, at cost; 1,427 and 1,432 shares, respectively
|
|
(79,961
|
)
|
|
(58,147
|
)
|
||
Total stockholders’ equity
|
|
985,325
|
|
|
1,035,175
|
|
||
Total liabilities and stockholders’ equity
|
|
$
|
3,962,509
|
|
|
$
|
3,819,478
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
|
(Unaudited, in thousands, except per share amounts)
|
||||||||||||||
REVENUES:
|
|
|
|
|
|
|
|
|
||||||||
New vehicle retail sales
|
|
$
|
1,521,246
|
|
|
$
|
1,386,667
|
|
|
$
|
4,256,146
|
|
|
$
|
3,873,121
|
|
Used vehicle retail sales
|
|
615,924
|
|
|
529,828
|
|
|
1,743,071
|
|
|
1,536,031
|
|
||||
Used vehicle wholesale sales
|
|
100,347
|
|
|
85,800
|
|
|
284,491
|
|
|
243,667
|
|
||||
Parts and service sales
|
|
291,816
|
|
|
255,316
|
|
|
844,340
|
|
|
753,776
|
|
||||
Finance, insurance and other, net
|
|
97,115
|
|
|
82,536
|
|
|
270,901
|
|
|
232,494
|
|
||||
Total revenues
|
|
2,626,448
|
|
|
2,340,147
|
|
|
7,398,949
|
|
|
6,639,089
|
|
||||
COST OF SALES:
|
|
|
|
|
|
|
|
|
||||||||
New vehicle retail sales
|
|
1,441,016
|
|
|
1,313,372
|
|
|
4,028,164
|
|
|
3,656,825
|
|
||||
Used vehicle retail sales
|
|
571,613
|
|
|
488,346
|
|
|
1,610,293
|
|
|
1,410,768
|
|
||||
Used vehicle wholesale sales
|
|
101,643
|
|
|
87,334
|
|
|
281,434
|
|
|
242,267
|
|
||||
Parts and service sales
|
|
137,467
|
|
|
121,633
|
|
|
397,079
|
|
|
358,004
|
|
||||
Total cost of sales
|
|
2,251,739
|
|
|
2,010,685
|
|
|
6,316,970
|
|
|
5,667,864
|
|
||||
GROSS PROFIT
|
|
374,709
|
|
|
329,462
|
|
|
1,081,979
|
|
|
971,225
|
|
||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
|
|
264,233
|
|
|
246,863
|
|
|
793,761
|
|
|
731,455
|
|
||||
DEPRECIATION AND AMORTIZATION EXPENSE
|
|
10,746
|
|
|
9,093
|
|
|
31,424
|
|
|
26,390
|
|
||||
ASSET IMPAIRMENTS
|
|
9,373
|
|
|
565
|
|
|
11,094
|
|
|
1,174
|
|
||||
INCOME FROM OPERATIONS
|
|
90,357
|
|
|
72,941
|
|
|
245,700
|
|
|
212,206
|
|
||||
OTHER EXPENSE:
|
|
|
|
|
|
|
|
|
||||||||
Floorplan interest expense
|
|
(10,452
|
)
|
|
(10,690
|
)
|
|
(31,695
|
)
|
|
(30,927
|
)
|
||||
Other interest expense, net
|
|
(13,246
|
)
|
|
(9,971
|
)
|
|
(36,326
|
)
|
|
(28,783
|
)
|
||||
Other expense, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(789
|
)
|
||||
Loss on extinguishment of long-term debt
|
|
(22,790
|
)
|
|
—
|
|
|
(46,403
|
)
|
|
—
|
|
||||
INCOME BEFORE INCOME TAXES
|
|
43,869
|
|
|
52,280
|
|
|
131,276
|
|
|
151,707
|
|
||||
PROVISION FOR INCOME TAXES
|
|
(17,707
|
)
|
|
(19,515
|
)
|
|
(56,949
|
)
|
|
(59,436
|
)
|
||||
NET INCOME
|
|
$
|
26,162
|
|
|
$
|
32,765
|
|
|
$
|
74,327
|
|
|
$
|
92,271
|
|
BASIC EARNINGS PER SHARE
|
|
$
|
1.07
|
|
|
$
|
1.34
|
|
|
$
|
3.06
|
|
|
$
|
3.83
|
|
Weighted average common shares outstanding
|
|
23,424
|
|
|
23,373
|
|
|
23,354
|
|
|
22,994
|
|
||||
DILUTED EARNINGS PER SHARE
|
|
$
|
1.03
|
|
|
$
|
1.19
|
|
|
$
|
2.82
|
|
|
$
|
3.52
|
|
Weighted average common shares outstanding
|
|
24,432
|
|
|
26,342
|
|
|
25,363
|
|
|
25,153
|
|
||||
CASH DIVIDENDS PER COMMON SHARE
|
|
$
|
0.17
|
|
|
$
|
0.17
|
|
|
$
|
0.51
|
|
|
$
|
0.48
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
|
(Unaudited, in thousands)
|
||||||||||||||
NET INCOME
|
|
$
|
26,162
|
|
|
$
|
32,765
|
|
|
$
|
74,327
|
|
|
$
|
92,271
|
|
Other comprehensive income (loss), net of taxes:
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustment
|
|
(21,938
|
)
|
|
3,237
|
|
|
(7,329
|
)
|
|
(23,487
|
)
|
||||
Net unrealized gain (loss) on interest rate swaps:
|
|
|
|
|
|
|
|
|
||||||||
Unrealized gain (loss) arising during the period, net of tax (provision) benefit of ($346), $1,615, $3,472 and ($2,999), respectively
|
|
577
|
|
|
(2,691
|
)
|
|
(5,787
|
)
|
|
4,999
|
|
||||
Reclassification adjustment for loss included in interest expense, net of tax provision of $1,074, $1,075, $3,176 and $3,120, respectively
|
|
1,789
|
|
|
1,791
|
|
|
5,293
|
|
|
5,200
|
|
||||
Net unrealized gain (loss) on interest rate swaps, net of tax
|
|
2,366
|
|
|
(900
|
)
|
|
(494
|
)
|
|
10,199
|
|
||||
OTHER COMPREHENSIVE (LOSS) INCOME, NET OF TAXES
|
|
(19,572
|
)
|
|
2,337
|
|
|
(7,823
|
)
|
|
(13,288
|
)
|
||||
COMPREHENSIVE INCOME
|
|
$
|
6,590
|
|
|
$
|
35,102
|
|
|
$
|
66,504
|
|
|
$
|
78,983
|
|
|
|
Common Stock
|
|
Additional
Paid-in Capital
|
|
Retained Earnings
|
|
Accumulated
Other
Comprehensive Loss
|
|
Treasury Stock
|
|
|
|||||||||||||||
|
|
Shares
|
|
Amount
|
|
|
|
|
|
Total
|
|||||||||||||||||
|
|
(Unaudited, in thousands)
|
|||||||||||||||||||||||||
BALANCE, December 31, 2013
|
|
25,746
|
|
|
$
|
257
|
|
|
$
|
368,641
|
|
|
$
|
776,101
|
|
|
$
|
(51,677
|
)
|
|
$
|
(58,147
|
)
|
|
$
|
1,035,175
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
74,327
|
|
|
—
|
|
|
—
|
|
|
74,327
|
|
||||||
Other comprehensive income, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,823
|
)
|
|
—
|
|
|
(7,823
|
)
|
||||||
Purchases of treasury stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(33,771
|
)
|
|
(33,771
|
)
|
||||||
Net temporary equity adjustment related to 3.00% and 2.25% Convertible Notes
|
|
—
|
|
|
—
|
|
|
(14,163
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14,163
|
)
|
||||||
Repurchase of equity component of 3.00% Convertible Notes
|
|
—
|
|
|
—
|
|
|
(118,003
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(118,003
|
)
|
||||||
Call/Warrant equity settlement on 3.00% Convertible Notes repurchase
|
|
—
|
|
|
—
|
|
|
32,641
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32,641
|
|
||||||
Conversion of equity component of 2.25% Convertible Notes
|
|
—
|
|
|
—
|
|
|
(20,789
|
)
|
|
—
|
|
|
—
|
|
|
36,860
|
|
|
16,071
|
|
||||||
Call/Warrant equity settlement on 2.25% Convertible Notes conversion
|
|
—
|
|
|
—
|
|
|
33,772
|
|
|
—
|
|
|
—
|
|
|
(33,772
|
)
|
|
—
|
|
||||||
Net issuance of treasury shares to employee stock compensation plans
|
|
15
|
|
|
1
|
|
|
(8,684
|
)
|
|
—
|
|
|
—
|
|
|
8,869
|
|
|
186
|
|
||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
11,836
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,836
|
|
||||||
Tax effect from stock-based compensation plans
|
|
—
|
|
|
—
|
|
|
1,103
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,103
|
|
||||||
Cash dividends, net of estimated forfeitures relative to participating securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,254
|
)
|
|
—
|
|
|
—
|
|
|
(12,254
|
)
|
||||||
BALANCE, September 30, 2014
|
|
25,761
|
|
|
$
|
258
|
|
|
$
|
286,354
|
|
|
$
|
838,174
|
|
|
$
|
(59,500
|
)
|
|
$
|
(79,961
|
)
|
|
$
|
985,325
|
|
|
|
Nine Months Ended September 30,
|
||||||
|
|
2014
|
|
2013
|
||||
|
|
(Unaudited, in thousands)
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
||||
Net income
|
|
$
|
74,327
|
|
|
$
|
92,271
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
||||
Depreciation and amortization
|
|
31,424
|
|
|
26,390
|
|
||
Deferred income taxes
|
|
6,494
|
|
|
16,601
|
|
||
Asset impairments
|
|
11,094
|
|
|
1,174
|
|
||
Stock-based compensation
|
|
11,871
|
|
|
10,473
|
|
||
Amortization of debt discount and issue costs
|
|
9,661
|
|
|
10,453
|
|
||
Loss on 3.00% Convertible Notes repurchase
|
|
29,478
|
|
|
—
|
|
||
Loss on 2.25% Convertible Notes conversion and redemption
|
|
16,925
|
|
|
—
|
|
||
Gain on disposition of assets
|
|
(17,363
|
)
|
|
(11,093
|
)
|
||
Tax effect from stock-based compensation
|
|
(1,145
|
)
|
|
(1,413
|
)
|
||
Other
|
|
2,047
|
|
|
2,301
|
|
||
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
|
|
|
|
|
||||
Accounts payable and accrued expenses
|
|
54,911
|
|
|
(9,500
|
)
|
||
Accounts and notes receivable
|
|
(6,562
|
)
|
|
2,815
|
|
||
Inventories
|
|
79,265
|
|
|
(107,994
|
)
|
||
Contracts-in-transit and vehicle receivables
|
|
33,839
|
|
|
45,284
|
|
||
Prepaid expenses and other assets
|
|
12,923
|
|
|
1,046
|
|
||
Floorplan notes payable - manufacturer affiliates
|
|
(77,155
|
)
|
|
49,814
|
|
||
Deferred revenues
|
|
(198
|
)
|
|
344
|
|
||
Net cash provided by operating activities
|
|
271,836
|
|
|
128,966
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
||||
Cash paid in acquisitions, net of cash received
|
|
(309,257
|
)
|
|
(106,672
|
)
|
||
Proceeds from disposition of franchises, property and equipment
|
|
138,800
|
|
|
101,821
|
|
||
Purchases of property and equipment, including real estate
|
|
(91,345
|
)
|
|
(63,890
|
)
|
||
Other
|
|
(5,832
|
)
|
|
2,155
|
|
||
Net cash used in investing activities
|
|
(267,634
|
)
|
|
(66,586
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
||||
Borrowings on credit facility - floorplan line and other
|
|
6,047,392
|
|
|
4,707,989
|
|
||
Repayments on credit facility - floorplan line and other
|
|
(6,086,414
|
)
|
|
(4,652,495
|
)
|
||
Borrowings on credit facility - acquisition line
|
|
314,963
|
|
|
—
|
|
||
Repayment on credit facility - acquisition line
|
|
(374,989
|
)
|
|
—
|
|
||
Borrowings on real estate credit facility
|
|
200
|
|
|
—
|
|
||
Principal payments on real estate credit facility
|
|
(9,081
|
)
|
|
(7,919
|
)
|
||
Net borrowings on 5.00% Senior Unsecured Notes
|
|
539,600
|
|
|
—
|
|
||
Debt issue costs
|
|
(1,881
|
)
|
|
—
|
|
||
Repurchase of 3.00% Convertible Notes
|
|
(260,074
|
)
|
|
—
|
|
||
Proceeds from Call/Warrant Unwind related to 3.00% Convertible Notes
|
|
32,697
|
|
|
—
|
|
||
Conversion and redemption of 2.25% Convertible Notes
|
|
(182,756
|
)
|
|
—
|
|
||
Borrowings on other debt
|
|
78,710
|
|
|
828
|
|
||
Principal payments on other debt
|
|
(70,267
|
)
|
|
(65,446
|
)
|
||
Borrowings on debt related to real estate
|
|
65,628
|
|
|
21,105
|
|
||
Principal payments on debt related to real estate
|
|
(39,024
|
)
|
|
(32,792
|
)
|
||
Employee stock purchase plan purchases, net of employee tax withholdings
|
|
187
|
|
|
538
|
|
||
Repurchases of common stock, amounts based on settlement date
|
|
(16,947
|
)
|
|
—
|
|
||
Tax effect from stock-based compensation
|
|
1,145
|
|
|
1,413
|
|
||
Dividends paid
|
|
(12,291
|
)
|
|
(11,676
|
)
|
||
Net cash provided by (used in) financing activities
|
|
26,798
|
|
|
(38,455
|
)
|
||
EFFECT OF EXCHANGE RATE CHANGES ON CASH
|
|
(563
|
)
|
|
(2,297
|
)
|
||
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
|
30,437
|
|
|
21,628
|
|
||
CASH AND CASH EQUIVALENTS, beginning of period
|
|
20,215
|
|
|
4,650
|
|
||
CASH AND CASH EQUIVALENTS, end of period
|
|
$
|
50,652
|
|
|
$
|
26,278
|
|
SUPPLEMENTAL CASH FLOW INFORMATION:
|
|
|
|
|
||||
Purchases of property and equipment, including real estate, accrued in accounts payable
|
|
$
|
3,440
|
|
|
$
|
501
|
|
Purchases of common stock accrued in accounts payable
|
|
$
|
16,824
|
|
|
$
|
—
|
|
|
|
September 30, 2014
|
|
December 31, 2013
|
||||
Current assets
|
|
$
|
24,536
|
|
|
$
|
24,170
|
|
Non-current assets
|
|
36,843
|
|
|
71,033
|
|
||
Total assets
|
|
$
|
61,379
|
|
|
$
|
95,203
|
|
Current liabilities
|
|
$
|
21,857
|
|
|
$
|
21,653
|
|
Non-current liabilities
|
|
22,179
|
|
|
25,374
|
|
||
Total liabilities
|
|
$
|
44,036
|
|
|
$
|
47,027
|
|
|
|
As of Acquisition Date
|
||
|
|
(In thousands)
|
||
Inventory
|
|
$
|
107,034
|
|
Other current assets
|
|
281
|
|
|
Property and equipment
|
|
46,814
|
|
|
Goodwill and intangible franchise rights
|
|
166,036
|
|
|
Deferred tax asset
|
|
5,851
|
|
|
Total assets
|
|
$
|
326,016
|
|
Current liabilities
|
|
$
|
16,775
|
|
Total liabilities
|
|
$
|
16,775
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
||||||||||
Supplemental Pro forma:
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|||||||
|
|
(In thousands)
|
|||||||||||||
Revenue
|
|
$
|
2,656,029
|
|
|
2,494,038
|
|
|
$
|
7,647,756
|
|
|
$
|
7,088,606
|
|
Net income
|
|
$
|
26,436
|
|
|
35,958
|
|
|
$
|
77,687
|
|
|
$
|
101,799
|
|
|
|
As of Acquisition Date
|
||
|
|
(In thousands)
|
||
Inventory
|
|
$
|
164,743
|
|
Other current assets
|
|
26,892
|
|
|
Property and equipment
|
|
71,389
|
|
|
Goodwill and intangible franchise rights
|
|
308,081
|
|
|
Other assets
|
|
1,869
|
|
|
Total assets
|
|
$
|
572,974
|
|
Current liabilities
|
|
$
|
117,694
|
|
Deferred income taxes
|
|
29,669
|
|
|
Long-term debt
|
|
68,639
|
|
|
Total liabilities
|
|
$
|
216,002
|
|
|
|
Amount of Unrealized Gain (Loss), Net of Tax, Recognized in Other Comprehensive Income (Loss)
|
|||||||
|
|
Nine Months Ended September 30,
|
|||||||
Derivatives in Cash Flow Hedging Relationship
|
|
2014
|
|
2013
|
|||||
|
|
|
(In thousands)
|
||||||
Interest rate swap contracts
|
|
|
$
|
(5,787
|
)
|
|
$
|
4,999
|
|
|
|
|
|
|
|
||||
|
|
Amount of Loss Reclassified from Other Comprehensive Income (Loss) into Statements of Operations
|
|||||||
Location of Loss Reclassified from Other Comprehensive Income (Loss) into Statements of Operations
|
|
Nine Months Ended September 30,
|
|||||||
|
2014
|
|
2013
|
||||||
|
|
|
(In thousands)
|
||||||
Floorplan interest expense
|
|
|
$
|
(7,331
|
)
|
|
$
|
(7,390
|
)
|
Other interest expense
|
|
|
(1,138
|
)
|
|
(930
|
)
|
|
|
Awards
|
|
Weighted Average
Grant Date
Fair Value
|
|||
Nonvested at December 31, 2013
|
|
933,740
|
|
|
$
|
49.87
|
|
Granted
|
|
274,040
|
|
|
67.18
|
|
|
Vested
|
|
(206,970
|
)
|
|
44.52
|
|
|
Forfeited
|
|
(52,010
|
)
|
|
53.50
|
|
|
Nonvested at September 30, 2014
|
|
948,800
|
|
|
$
|
55.83
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
|
(In thousands, except per share amounts)
|
||||||||||||||
Weighted average basic common shares outstanding
|
|
23,424
|
|
|
23,373
|
|
|
23,354
|
|
|
22,994
|
|
||||
Dilutive effect of contingently convertible notes and warrants
|
|
1,003
|
|
|
2,962
|
|
|
2,004
|
|
|
2,153
|
|
||||
Dilutive effect of employee stock purchases, net of assumed repurchase of treasury stock
|
|
5
|
|
|
7
|
|
|
5
|
|
|
6
|
|
||||
Weighted average dilutive common shares outstanding
|
|
24,432
|
|
|
26,342
|
|
|
25,363
|
|
|
25,153
|
|
||||
Basic:
|
|
|
|
|
|
|
|
|
||||||||
Net Income
|
|
$
|
26,162
|
|
|
$
|
32,765
|
|
|
$
|
74,327
|
|
|
$
|
92,271
|
|
Less: Earnings allocated to participating securities
|
|
1,035
|
|
|
1,460
|
|
|
2,958
|
|
|
4,144
|
|
||||
Earnings available to basic common shares
|
|
$
|
25,127
|
|
|
$
|
31,305
|
|
|
$
|
71,369
|
|
|
$
|
88,127
|
|
Basic earnings per common share
|
|
$
|
1.07
|
|
|
$
|
1.34
|
|
|
$
|
3.06
|
|
|
$
|
3.83
|
|
Diluted:
|
|
|
|
|
|
|
|
|
||||||||
Net Income
|
|
$
|
26,162
|
|
|
$
|
32,765
|
|
|
$
|
74,327
|
|
|
$
|
92,271
|
|
Less: Earnings allocated to participating securities
|
|
1,000
|
|
|
1,320
|
|
|
2,769
|
|
|
3,843
|
|
||||
Earnings available to diluted common shares
|
|
$
|
25,162
|
|
|
$
|
31,445
|
|
|
$
|
71,558
|
|
|
$
|
88,428
|
|
Diluted earnings per common share
|
|
$
|
1.03
|
|
|
$
|
1.19
|
|
|
$
|
2.82
|
|
|
$
|
3.52
|
|
|
|
September 30, 2014
|
|
December 31, 2013
|
||||
|
|
(unaudited)
|
|
|
||||
|
|
(In thousands)
|
||||||
Amounts due from manufacturers
|
|
$
|
77,374
|
|
|
$
|
78,131
|
|
Parts and service receivables
|
|
34,769
|
|
|
31,950
|
|
||
Finance and insurance receivables
|
|
18,208
|
|
|
19,283
|
|
||
Other
|
|
11,183
|
|
|
8,099
|
|
||
Total accounts and notes receivable
|
|
141,534
|
|
|
137,463
|
|
||
Less allowance for doubtful accounts
|
|
2,799
|
|
|
2,405
|
|
||
Accounts and notes receivable, net
|
|
$
|
138,735
|
|
|
$
|
135,058
|
|
|
|
September 30, 2014
|
|
December 31, 2013
|
||||
|
|
(unaudited)
|
|
|
||||
|
|
(In thousands)
|
||||||
New vehicles
|
|
$
|
1,085,469
|
|
|
$
|
1,165,335
|
|
Used vehicles
|
|
250,338
|
|
|
231,960
|
|
||
Rental vehicles
|
|
97,602
|
|
|
88,523
|
|
||
Parts, accessories and other
|
|
64,136
|
|
|
64,156
|
|
||
Total inventories
|
|
1,497,545
|
|
|
1,549,974
|
|
||
Less lower of cost or market reserves
|
|
7,025
|
|
|
7,656
|
|
||
Inventories, net
|
|
$
|
1,490,520
|
|
|
$
|
1,542,318
|
|
|
|
Estimated
Useful Lives
in Years
|
|
September 30, 2014
|
|
December 31, 2013
|
||||
|
|
(unaudited)
|
||||||||
|
|
|
|
(dollars in thousands)
|
||||||
Land
|
|
—
|
|
$
|
294,475
|
|
|
$
|
269,778
|
|
Buildings
|
|
30 to 40
|
|
428,784
|
|
|
405,918
|
|
||
Leasehold improvements
|
|
varies
|
|
128,887
|
|
|
120,531
|
|
||
Machinery and equipment
|
|
7 to 20
|
|
85,420
|
|
|
79,209
|
|
||
Furniture and fixtures
|
|
3 to 10
|
|
76,162
|
|
|
70,918
|
|
||
Company vehicles
|
|
3 to 5
|
|
10,517
|
|
|
8,508
|
|
||
Construction in progress
|
|
—
|
|
31,803
|
|
|
19,224
|
|
||
Total
|
|
|
|
1,056,048
|
|
|
974,086
|
|
||
Less accumulated depreciation
|
|
|
|
196,709
|
|
|
177,730
|
|
||
Property and equipment, net
|
|
|
|
$
|
859,339
|
|
|
$
|
796,356
|
|
|
|
September 30, 2014
|
|
December 31, 2013
|
||||
|
|
(dollars in thousands)
|
||||||
5.00% Senior Notes
|
|
$
|
539,822
|
|
|
$
|
—
|
|
2.25% Convertible Senior Notes
|
|
—
|
|
|
160,334
|
|
||
3.00% Convertible Senior Notes
|
|
—
|
|
|
84,305
|
|
||
Acquisition Line
|
|
—
|
|
|
60,000
|
|
||
Real Estate Credit Facility
|
|
58,838
|
|
|
67,719
|
|
||
Other Real Estate Related and Long-Term Debt
|
|
316,703
|
|
|
279,167
|
|
||
Capital lease obligations related to real estate, maturing in varying amounts through June 2034 with a weighted average interest rate of 10.3%
|
|
57,655
|
|
|
47,553
|
|
||
|
|
973,018
|
|
|
699,078
|
|
||
Less current maturities of real estate credit facility and other long-term debt
|
|
34,519
|
|
|
35,389
|
|
||
|
|
$
|
938,499
|
|
|
$
|
663,689
|
|
|
|
Nine Months Ended September 30,
|
||||||
|
|
2014
|
|
2013
|
||||
|
|
(dollars in thousands)
|
||||||
Year-to-date contractual interest expense
|
|
$
|
1,875
|
|
|
$
|
3,084
|
|
Year-to-date discount amortization
(1)
|
|
$
|
5,366
|
|
|
$
|
5,590
|
|
Effective interest rate of liability component
|
|
7.7
|
%
|
|
7.7
|
%
|
|
|
Nine Months Ended September 30,
|
||||||
|
|
2014
|
|
2013
|
||||
|
|
(dollars in thousands)
|
||||||
Year-to-date contractual interest expense
|
|
$
|
1,839
|
|
|
$
|
2,588
|
|
Year-to-date discount amortization
(1)
|
|
$
|
1,810
|
|
|
$
|
2,410
|
|
Effective interest rate of liability component
|
|
8.6
|
%
|
|
8.6
|
%
|
|
|
As of September 30, 2014
|
||||||||||
|
|
Level 1
|
|
Level 2
|
|
Total
|
||||||
|
|
(In thousands)
|
||||||||||
Assets:
|
|
|
|
|
|
|
||||||
Interest rate derivative financial instruments
|
|
$
|
—
|
|
|
$
|
534
|
|
|
$
|
534
|
|
Debt securities:
|
|
|
|
|
|
|
||||||
Demand obligations
|
|
$
|
—
|
|
|
$
|
30,198
|
|
|
$
|
30,198
|
|
Total
|
|
$
|
—
|
|
|
$
|
30,732
|
|
|
$
|
30,732
|
|
Liabilities:
|
|
|
|
|
|
|
||||||
Interest rate derivative financial instruments
|
|
$
|
—
|
|
|
$
|
23,483
|
|
|
$
|
23,483
|
|
Total
|
|
$
|
—
|
|
|
$
|
23,483
|
|
|
$
|
23,483
|
|
|
|
As of December 31, 2013
|
||||||||||
|
|
Level 1
|
|
Level 2
|
|
Total
|
||||||
|
|
(In thousands)
|
||||||||||
Assets:
|
|
|
|
|
|
|
||||||
Interest rate derivative financial instruments
|
|
$
|
—
|
|
|
$
|
3,919
|
|
|
$
|
3,919
|
|
Total
|
|
$
|
—
|
|
|
$
|
3,919
|
|
|
$
|
3,919
|
|
Liabilities:
|
|
|
|
|
|
|
||||||
Interest rate derivative financial instruments
|
|
$
|
—
|
|
|
$
|
26,078
|
|
|
$
|
26,078
|
|
Total
|
|
$
|
—
|
|
|
$
|
26,078
|
|
|
$
|
26,078
|
|
|
Intangible Franchise Rights
|
|
||||||||||||||
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
|
||||||||
|
(In thousands)
|
|
||||||||||||||
BALANCE, December 31, 2013
|
$
|
216,412
|
|
|
$
|
8,659
|
|
|
$
|
76,434
|
|
|
$
|
301,505
|
|
|
Additions through acquisitions
|
60,122
|
|
|
—
|
|
|
2,490
|
|
|
62,612
|
|
|
||||
Purchase price allocation adjustments
|
(2,114
|
)
|
|
—
|
|
|
(9,061
|
)
|
|
(11,175
|
)
|
|
||||
Disposals and assets held for sale
|
(12,075
|
)
|
|
—
|
|
|
(508
|
)
|
|
(12,583
|
)
|
|
||||
Impairments
|
—
|
|
|
—
|
|
|
(2,800
|
)
|
|
(2,800
|
)
|
|
||||
Currency translation
|
—
|
|
|
(131
|
)
|
|
(1,758
|
)
|
|
(1,889
|
)
|
|
||||
BALANCE, September 30, 2014
|
$
|
262,345
|
|
|
$
|
8,528
|
|
|
$
|
64,797
|
|
|
$
|
335,670
|
|
|
|
Goodwill
|
|
||||||||||||||
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
|
||||||||
|
(In thousands)
|
|
||||||||||||||
BALANCE, December 31, 2013
|
$
|
612,468
|
|
|
$
|
19,602
|
|
|
$
|
105,233
|
|
|
$
|
737,303
|
|
(1)
|
Additions through acquisitions
|
103,424
|
|
|
—
|
|
|
—
|
|
|
103,424
|
|
|
||||
Purchase price allocation adjustments
|
1,459
|
|
|
—
|
|
|
5,976
|
|
|
7,435
|
|
|
||||
Disposals and assets held for sale
|
(17,140
|
)
|
|
—
|
|
|
(1,813
|
)
|
|
(18,953
|
)
|
|
||||
Currency translation
|
—
|
|
|
(296
|
)
|
|
(3,865
|
)
|
|
(4,161
|
)
|
|
||||
Tax adjustments
|
(52
|
)
|
|
—
|
|
|
—
|
|
|
(52
|
)
|
|
||||
BALANCE, September 30, 2014
|
$
|
700,159
|
|
|
$
|
19,306
|
|
|
$
|
105,531
|
|
|
$
|
824,996
|
|
(1)
|
|
|
Nine Months Ended September 30, 2014
|
||||||||||
|
|
Accumulated foreign currency translation loss
|
|
Accumulated loss on interest rate swaps
|
|
Total
|
||||||
|
|
(In thousands)
|
||||||||||
Balance, December 31, 2013
|
|
$
|
(37,827
|
)
|
|
$
|
(13,850
|
)
|
|
$
|
(51,677
|
)
|
Other comprehensive income (loss) before reclassifications:
|
|
|
|
|
|
|
||||||
Pre-tax
|
|
(7,329
|
)
|
|
(9,259
|
)
|
|
(16,588
|
)
|
|||
Tax effect
|
|
—
|
|
|
3,472
|
|
|
3,472
|
|
|||
Amounts reclassified from accumulated other comprehensive loss to:
|
|
|
|
|
|
|
|
|||||
Floorplan interest expense
|
|
—
|
|
|
7,331
|
|
|
7,331
|
|
|||
Other interest expense
|
|
—
|
|
|
1,138
|
|
|
1,138
|
|
|||
Tax effect
|
|
—
|
|
|
(3,176
|
)
|
|
(3,176
|
)
|
|||
Net current period other comprehensive loss
|
|
(7,329
|
)
|
|
(494
|
)
|
|
(7,823
|
)
|
|||
Balance, September 30, 2014
|
|
$
|
(45,156
|
)
|
|
$
|
(14,344
|
)
|
|
$
|
(59,500
|
)
|
|
|
Nine Months Ended September 30, 2013
|
||||||||||
|
|
Accumulated foreign currency translation loss
|
|
Accumulated loss on interest rate swaps
|
|
Total
|
||||||
|
|
(In thousands)
|
||||||||||
Balance, December 31, 2012
|
|
$
|
(6,126
|
)
|
|
$
|
(26,931
|
)
|
|
$
|
(33,057
|
)
|
Other comprehensive income (loss) before reclassifications:
|
|
|
|
|
|
|
||||||
Pre-tax
|
|
(23,487
|
)
|
|
7,998
|
|
|
(15,489
|
)
|
|||
Tax effect
|
|
—
|
|
|
(2,999
|
)
|
|
(2,999
|
)
|
|||
Amounts reclassified from accumulated other comprehensive income to:
|
|
|
|
|
|
|
||||||
Floorplan interest expense
|
|
—
|
|
|
7,390
|
|
|
7,390
|
|
|||
Other interest expense
|
|
—
|
|
|
930
|
|
|
930
|
|
|||
Tax effect
|
|
—
|
|
|
(3,120
|
)
|
|
(3,120
|
)
|
|||
Net current period other comprehensive (loss) income
|
|
(23,487
|
)
|
|
10,199
|
|
|
(13,288
|
)
|
|||
Balance, September 30, 2013
|
|
$
|
(29,613
|
)
|
|
$
|
(16,732
|
)
|
|
$
|
(46,345
|
)
|
|
Three Months Ended September 30, 2014
|
|
Nine Months Ended September 30, 2014
|
||||||||||||||||||||||||||||
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||||||
Total revenues
|
$
|
2,175,605
|
|
|
$
|
252,201
|
|
|
$
|
198,642
|
|
|
$
|
2,626,448
|
|
|
$
|
6,070,827
|
|
|
$
|
751,226
|
|
|
$
|
576,896
|
|
|
$
|
7,398,949
|
|
Income (loss) before income taxes
|
43,146
|
|
|
5,840
|
|
|
(5,117
|
)
|
|
43,869
|
|
|
123,474
|
|
|
15,974
|
|
|
(8,172
|
)
|
|
131,276
|
|
||||||||
(Provision) benefit for income taxes
|
(20,375
|
)
|
|
(1,159
|
)
|
|
3,827
|
|
|
(17,707
|
)
|
|
(57,439
|
)
|
|
(2,814
|
)
|
|
3,304
|
|
|
(56,949
|
)
|
||||||||
Net income (loss)
(1)
|
22,771
|
|
|
4,681
|
|
|
(1,290
|
)
|
|
26,162
|
|
|
66,035
|
|
|
13,160
|
|
|
(4,868
|
)
|
|
74,327
|
|
|
Three Months Ended September 30, 2013
|
|
Nine Months Ended September 30, 2013
|
||||||||||||||||||||||||||||
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
|
U.S.
|
|
U.K.
|
|
Brazil
(3)
|
|
Total
|
||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||||||
Total revenues
|
$
|
1,889,378
|
|
|
$
|
234,914
|
|
|
$
|
215,855
|
|
|
$
|
2,340,147
|
|
|
$
|
5,492,819
|
|
|
$
|
613,428
|
|
|
$
|
532,842
|
|
|
$
|
6,639,089
|
|
Income before income taxes
|
47,332
|
|
|
4,514
|
|
|
434
|
|
|
52,280
|
|
|
139,111
|
|
|
10,355
|
|
|
2,241
|
|
|
151,707
|
|
||||||||
Provision for income taxes
|
(18,369
|
)
|
|
(907
|
)
|
|
(239
|
)
|
|
(19,515
|
)
|
|
(56,475
|
)
|
|
(2,260
|
)
|
|
(701
|
)
|
|
(59,436
|
)
|
||||||||
Net income
(2)
|
28,963
|
|
|
3,607
|
|
|
195
|
|
|
32,765
|
|
|
82,636
|
|
|
8,095
|
|
|
1,540
|
|
|
92,271
|
|
|
As of September 30, 2014
|
||||||||||||||
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
Total assets
|
$
|
3,362,758
|
|
|
$
|
279,299
|
|
|
$
|
320,452
|
|
|
$
|
3,962,509
|
|
|
As of December 31, 2013
|
||||||||||||||
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
Total assets
|
$
|
3,241,192
|
|
|
$
|
237,960
|
|
|
$
|
340,326
|
|
|
$
|
3,819,478
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Unit Sales
|
|
|
|
|
|
|
|
|
||||||||
Retail Sales
|
|
|
|
|
|
|
|
|
||||||||
New Vehicle
|
|
44,494
|
|
|
42,311
|
|
|
124,699
|
|
|
116,938
|
|
||||
Used Vehicle
|
|
28,776
|
|
|
26,059
|
|
|
82,374
|
|
|
74,931
|
|
||||
Total Retail Sales
|
|
73,270
|
|
|
68,370
|
|
|
207,073
|
|
|
191,869
|
|
||||
Wholesale Sales
|
|
14,750
|
|
|
13,445
|
|
|
40,764
|
|
|
37,852
|
|
||||
Total Vehicle Sales
|
|
88,020
|
|
|
81,815
|
|
|
247,837
|
|
|
229,721
|
|
||||
Gross Margin
|
|
|
|
|
|
|
|
|
||||||||
New Vehicle Retail Sales
|
|
5.3
|
%
|
|
5.3
|
%
|
|
5.4
|
%
|
|
5.6
|
%
|
||||
Total Used Vehicle Sales
|
|
6.0
|
%
|
|
6.5
|
%
|
|
6.7
|
%
|
|
7.1
|
%
|
||||
Parts and Service Sales
|
|
52.9
|
%
|
|
52.4
|
%
|
|
53.0
|
%
|
|
52.5
|
%
|
||||
Total Gross Margin
|
|
14.3
|
%
|
|
14.1
|
%
|
|
14.6
|
%
|
|
14.6
|
%
|
||||
SG&A
(1)
as a % of Gross Profit
|
|
70.5
|
%
|
|
74.9
|
%
|
|
73.4
|
%
|
|
75.3
|
%
|
||||
Operating Margin
|
|
3.4
|
%
|
|
3.1
|
%
|
|
3.3
|
%
|
|
3.2
|
%
|
||||
Pretax Margin
|
|
1.7
|
%
|
|
2.2
|
%
|
|
1.8
|
%
|
|
2.3
|
%
|
||||
Finance and Insurance Revenues per Retail Unit Sold
|
|
$
|
1,325
|
|
|
$
|
1,207
|
|
|
$
|
1,308
|
|
|
$
|
1,212
|
|
(1)
|
Selling, general and administrative expenses.
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||
|
|
2014
|
|
% Change
|
|
2013
|
|
|
2014
|
|
% Change
|
|
2013
|
||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
New vehicle retail
|
|
$
|
1,395,362
|
|
|
3.4%
|
|
$
|
1,349,044
|
|
|
|
$
|
3,889,352
|
|
|
3.5%
|
|
$
|
3,757,316
|
|
Used vehicle retail
|
|
558,795
|
|
|
8.4%
|
|
515,592
|
|
|
|
1,593,144
|
|
|
6.7%
|
|
1,493,801
|
|
||||
Used vehicle wholesale
|
|
92,479
|
|
|
10.9%
|
|
83,424
|
|
|
|
262,736
|
|
|
11.4%
|
|
235,780
|
|
||||
Parts and service
|
|
267,569
|
|
|
7.4%
|
|
249,237
|
|
|
|
775,246
|
|
|
6.4%
|
|
728,507
|
|
||||
Finance, insurance and other
|
|
89,401
|
|
|
10.0%
|
|
81,283
|
|
|
|
253,239
|
|
|
11.5%
|
|
227,024
|
|
||||
Total revenues
|
|
$
|
2,403,606
|
|
|
5.5%
|
|
$
|
2,278,580
|
|
|
|
$
|
6,773,717
|
|
|
5.1%
|
|
$
|
6,442,428
|
|
Cost of Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
New vehicle retail
|
|
$
|
1,321,720
|
|
|
3.5%
|
|
$
|
1,277,389
|
|
|
|
$
|
3,681,375
|
|
|
3.8%
|
|
$
|
3,545,426
|
|
Used vehicle retail
|
|
518,464
|
|
|
9.2%
|
|
474,992
|
|
|
|
1,472,317
|
|
|
7.3%
|
|
1,371,735
|
|
||||
Used vehicle wholesale
|
|
93,435
|
|
|
10.6%
|
|
84,484
|
|
|
|
259,562
|
|
|
11.1%
|
|
233,703
|
|
||||
Parts and service
|
|
126,243
|
|
|
6.1%
|
|
118,979
|
|
|
|
364,631
|
|
|
5.3%
|
|
346,334
|
|
||||
Total cost of sales
|
|
$
|
2,059,862
|
|
|
5.3%
|
|
$
|
1,955,844
|
|
|
|
$
|
5,777,885
|
|
|
5.1%
|
|
$
|
5,497,198
|
|
Gross profit
|
|
$
|
343,744
|
|
|
6.5%
|
|
$
|
322,736
|
|
|
|
$
|
995,832
|
|
|
5.4%
|
|
$
|
945,230
|
|
SG&A
|
|
$
|
252,352
|
|
|
5.3%
|
|
$
|
239,565
|
|
|
|
$
|
735,834
|
|
|
3.1%
|
|
$
|
714,047
|
|
Depreciation and amortization expenses
|
|
$
|
9,768
|
|
|
6.8%
|
|
$
|
9,145
|
|
|
|
$
|
28,771
|
|
|
10.5%
|
|
$
|
26,030
|
|
Floorplan interest expense
|
|
$
|
9,731
|
|
|
(7.2)%
|
|
$
|
10,491
|
|
|
|
$
|
28,670
|
|
|
(5.4)%
|
|
$
|
30,301
|
|
Gross Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
New vehicle retail
|
|
5.3
|
%
|
|
|
|
5.3
|
%
|
|
|
5.3
|
%
|
|
|
|
5.6
|
%
|
||||
Total used vehicle
|
|
6.0
|
%
|
|
|
|
6.6
|
%
|
|
|
6.7
|
%
|
|
|
|
7.2
|
%
|
||||
Parts and service
|
|
52.8
|
%
|
|
|
|
52.3
|
%
|
|
|
53.0
|
%
|
|
|
|
52.5
|
%
|
||||
Total gross margin
|
|
14.3
|
%
|
|
|
|
14.2
|
%
|
|
|
14.7
|
%
|
|
|
|
14.7
|
%
|
||||
SG&A as a % of gross profit
|
|
73.4
|
%
|
|
|
|
74.2
|
%
|
|
|
73.9
|
%
|
|
|
|
75.5
|
%
|
||||
Operating margin
|
|
3.2
|
%
|
|
|
|
3.2
|
%
|
|
|
3.3
|
%
|
|
|
|
3.2
|
%
|
||||
Finance and insurance revenues per retail unit sold
|
|
$
|
1,336
|
|
|
9.3%
|
|
$
|
1,222
|
|
|
|
$
|
1,346
|
|
|
10.1%
|
|
$
|
1,222
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||
|
|
2014
|
|
% Change
|
|
2013
|
|
|
2014
|
|
% Change
|
|
2013
|
||||||||
Retail Unit Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
33,100
|
|
|
4.4%
|
|
31,717
|
|
|
|
93,447
|
|
|
3.5%
|
|
90,283
|
|
||||
U.K.
|
|
3,773
|
|
|
(12.4)%
|
|
4,306
|
|
|
|
10,728
|
|
|
(0.1)%
|
|
10,738
|
|
||||
Brazil
|
|
4,013
|
|
|
(21.9)%
|
|
5,139
|
|
|
|
9,343
|
|
|
(21.9)%
|
|
11,967
|
|
||||
Total Same Stores
|
|
40,886
|
|
|
(0.7)%
|
|
41,162
|
|
|
|
113,518
|
|
|
0.5%
|
|
112,988
|
|
||||
Transactions
|
|
3,608
|
|
|
|
|
1,149
|
|
|
|
11,181
|
|
|
|
|
3,950
|
|
||||
Total
|
|
44,494
|
|
|
5.2%
|
|
42,311
|
|
|
|
124,699
|
|
|
6.6%
|
|
116,938
|
|
||||
Retail Sales Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
1,120,864
|
|
|
6.4%
|
|
$
|
1,053,601
|
|
|
|
$
|
3,179,584
|
|
|
5.4%
|
|
$
|
3,016,656
|
|
U.K.
|
|
134,858
|
|
|
(1.4)%
|
|
136,738
|
|
|
|
388,921
|
|
|
13.7%
|
|
342,038
|
|
||||
Brazil
|
|
139,640
|
|
|
(12.0)%
|
|
158,705
|
|
|
|
320,847
|
|
|
(19.5)%
|
|
398,622
|
|
||||
Total Same Stores
|
|
1,395,362
|
|
|
3.4%
|
|
1,349,044
|
|
|
|
3,889,352
|
|
|
3.5%
|
|
3,757,316
|
|
||||
Transactions
|
|
125,884
|
|
|
|
|
37,623
|
|
|
|
366,794
|
|
|
|
|
115,805
|
|
||||
Total
|
|
$
|
1,521,246
|
|
|
9.7%
|
|
$
|
1,386,667
|
|
|
|
$
|
4,256,146
|
|
|
9.9%
|
|
$
|
3,873,121
|
|
Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
55,456
|
|
|
5.7%
|
|
$
|
52,448
|
|
|
|
$
|
160,865
|
|
|
0.8%
|
|
$
|
159,600
|
|
U.K.
|
|
9,303
|
|
|
18.5%
|
|
7,848
|
|
|
|
26,514
|
|
|
22.6%
|
|
21,629
|
|
||||
Brazil
|
|
8,883
|
|
|
(21.8)%
|
|
11,359
|
|
|
|
20,598
|
|
|
(32.8)%
|
|
30,661
|
|
||||
Total Same Stores
|
|
73,642
|
|
|
2.8%
|
|
71,655
|
|
|
|
207,977
|
|
|
(1.8)%
|
|
211,890
|
|
||||
Transactions
|
|
6,588
|
|
|
|
|
1,640
|
|
|
|
20,005
|
|
|
|
|
4,406
|
|
||||
Total
|
|
$
|
80,230
|
|
|
9.5%
|
|
$
|
73,295
|
|
|
|
$
|
227,982
|
|
|
5.4%
|
|
$
|
216,296
|
|
Gross Profit per Retail Unit Sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
1,675
|
|
|
1.3%
|
|
$
|
1,654
|
|
|
|
$
|
1,721
|
|
|
(2.7)%
|
|
$
|
1,768
|
|
U.K.
|
|
$
|
2,466
|
|
|
35.3%
|
|
$
|
1,823
|
|
|
|
$
|
2,471
|
|
|
22.7%
|
|
$
|
2,014
|
|
Brazil
|
|
$
|
2,214
|
|
|
0.2%
|
|
$
|
2,210
|
|
|
|
$
|
2,205
|
|
|
(13.9)%
|
|
$
|
2,562
|
|
Total Same Stores
|
|
$
|
1,801
|
|
|
3.4%
|
|
$
|
1,741
|
|
|
|
$
|
1,832
|
|
|
(2.3)%
|
|
$
|
1,875
|
|
Transactions
|
|
$
|
1,826
|
|
|
|
|
$
|
1,427
|
|
|
|
$
|
1,789
|
|
|
|
|
$
|
1,115
|
|
Total
|
|
$
|
1,803
|
|
|
4.1%
|
|
$
|
1,732
|
|
|
|
$
|
1,828
|
|
|
(1.2)%
|
|
$
|
1,850
|
|
Gross Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
4.9
|
%
|
|
|
|
5.0
|
%
|
|
|
5.1
|
%
|
|
|
|
5.3
|
%
|
||||
U.K.
|
|
6.9
|
%
|
|
|
|
5.7
|
%
|
|
|
6.8
|
%
|
|
|
|
6.3
|
%
|
||||
Brazil
|
|
6.4
|
%
|
|
|
|
7.2
|
%
|
|
|
6.4
|
%
|
|
|
|
7.7
|
%
|
||||
Total Same Stores
|
|
5.3
|
%
|
|
|
|
5.3
|
%
|
|
|
5.3
|
%
|
|
|
|
5.6
|
%
|
||||
Transactions
|
|
5.2
|
%
|
|
|
|
4.4
|
%
|
|
|
5.5
|
%
|
|
|
|
3.8
|
%
|
||||
Total
|
|
5.3
|
%
|
|
|
|
5.3
|
%
|
|
|
5.4
|
%
|
|
|
|
5.6
|
%
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2014
|
|
% Change
|
|
2013
|
|
|
2014
|
|
% Change
|
|
2013
|
||||
Toyota
|
|
12,123
|
|
|
6.6%
|
|
11,370
|
|
|
|
32,200
|
|
|
4.9%
|
|
30,687
|
|
BMW
|
|
4,423
|
|
|
(2.2)%
|
|
4,524
|
|
|
|
12,637
|
|
|
1.9%
|
|
12,396
|
|
Ford
|
|
4,410
|
|
|
(14.9)%
|
|
5,185
|
|
|
|
12,164
|
|
|
(10.3)%
|
|
13,567
|
|
Honda
|
|
4,260
|
|
|
(2.7)%
|
|
4,377
|
|
|
|
12,264
|
|
|
(5.8)%
|
|
13,014
|
|
Nissan
|
|
3,974
|
|
|
(2.1)%
|
|
4,060
|
|
|
|
11,126
|
|
|
1.4%
|
|
10,969
|
|
Volkswagen
|
|
2,718
|
|
|
(1.7)%
|
|
2,766
|
|
|
|
7,869
|
|
|
3.1%
|
|
7,636
|
|
General Motors
|
|
2,120
|
|
|
8.7%
|
|
1,950
|
|
|
|
6,032
|
|
|
8.5%
|
|
5,562
|
|
Hyundai
|
|
2,026
|
|
|
2.1%
|
|
1,984
|
|
|
|
5,870
|
|
|
11.6%
|
|
5,260
|
|
Chrysler
|
|
1,950
|
|
|
18.7%
|
|
1,643
|
|
|
|
5,533
|
|
|
18.2%
|
|
4,681
|
|
Mercedes-Benz
|
|
1,570
|
|
|
3.6%
|
|
1,516
|
|
|
|
4,848
|
|
|
1.5%
|
|
4,775
|
|
Other
|
|
1,312
|
|
|
(26.6)%
|
|
1,787
|
|
|
|
2,975
|
|
|
(33.0)%
|
|
4,441
|
|
Total
|
|
40,886
|
|
|
(0.7)%
|
|
41,162
|
|
|
|
113,518
|
|
|
0.5%
|
|
112,988
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||
|
|
2014
|
|
% Change
|
|
2013
|
|
|
2014
|
|
% Change
|
|
2013
|
||||||||
Retail Unit Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
22,180
|
|
|
3.1%
|
|
21,521
|
|
|
|
64,336
|
|
|
2.0%
|
|
63,070
|
|
||||
U.K.
|
|
2,649
|
|
|
5.5%
|
|
2,510
|
|
|
|
7,422
|
|
|
9.8%
|
|
6,762
|
|
||||
Brazil
|
|
1,192
|
|
|
(11.2)%
|
|
1,343
|
|
|
|
2,797
|
|
|
(4.2)%
|
|
2,919
|
|
||||
Total Same Stores
|
|
26,021
|
|
|
2.5%
|
|
25,374
|
|
|
|
74,555
|
|
|
2.5%
|
|
72,751
|
|
||||
Transactions
|
|
2,755
|
|
|
|
|
685
|
|
|
|
7,819
|
|
|
|
|
2,180
|
|
||||
Total
|
|
28,776
|
|
|
10.4%
|
|
26,059
|
|
|
|
82,374
|
|
|
9.9%
|
|
74,931
|
|
||||
Retail Sales Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
459,223
|
|
|
6.9%
|
|
$
|
429,480
|
|
|
|
$
|
1,324,402
|
|
|
4.4%
|
|
$
|
1,268,399
|
|
U.K.
|
|
70,164
|
|
|
17.9%
|
|
59,508
|
|
|
|
202,968
|
|
|
24.6%
|
|
162,901
|
|
||||
Brazil
|
|
29,408
|
|
|
10.5%
|
|
26,604
|
|
|
|
65,774
|
|
|
5.2%
|
|
62,501
|
|
||||
Total Same Stores
|
|
558,795
|
|
|
8.4%
|
|
515,592
|
|
|
|
1,593,144
|
|
|
6.7%
|
|
1,493,801
|
|
||||
Transactions
|
|
57,129
|
|
|
|
|
14,236
|
|
|
|
149,927
|
|
|
|
|
42,230
|
|
||||
Total
|
|
$
|
615,924
|
|
|
16.2%
|
|
$
|
529,828
|
|
|
|
$
|
1,743,071
|
|
|
13.5%
|
|
$
|
1,536,031
|
|
Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
34,303
|
|
|
(2.1)%
|
|
$
|
35,055
|
|
|
|
$
|
104,774
|
|
|
(3.6)%
|
|
$
|
108,705
|
|
U.K.
|
|
4,166
|
|
|
8.3%
|
|
3,848
|
|
|
|
11,996
|
|
|
18.6%
|
|
10,112
|
|
||||
Brazil
|
|
1,862
|
|
|
9.7%
|
|
1,697
|
|
|
|
4,057
|
|
|
24.9%
|
|
3,249
|
|
||||
Total Same Stores
|
|
40,331
|
|
|
(0.7)%
|
|
40,600
|
|
|
|
120,827
|
|
|
(1.0)%
|
|
122,066
|
|
||||
Transactions
|
|
3,980
|
|
|
|
|
882
|
|
|
|
11,951
|
|
|
|
|
3,197
|
|
||||
Total
|
|
$
|
44,311
|
|
|
6.8%
|
|
$
|
41,482
|
|
|
|
$
|
132,778
|
|
|
6.0%
|
|
$
|
125,263
|
|
Gross Profit per Unit Sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
1,547
|
|
|
(5.0)%
|
|
$
|
1,629
|
|
|
|
$
|
1,629
|
|
|
(5.5)%
|
|
$
|
1,724
|
|
U.K.
|
|
$
|
1,573
|
|
|
2.6%
|
|
$
|
1,533
|
|
|
|
$
|
1,616
|
|
|
8.1%
|
|
$
|
1,495
|
|
Brazil
|
|
$
|
1,562
|
|
|
23.6%
|
|
$
|
1,264
|
|
|
|
$
|
1,450
|
|
|
30.3%
|
|
$
|
1,113
|
|
Total Same Stores
|
|
$
|
1,550
|
|
|
(3.1)%
|
|
$
|
1,600
|
|
|
|
$
|
1,621
|
|
|
(3.4)%
|
|
$
|
1,678
|
|
Transactions
|
|
$
|
1,445
|
|
|
|
|
$
|
1,288
|
|
|
|
$
|
1,528
|
|
|
|
|
$
|
1,467
|
|
Total
|
|
$
|
1,540
|
|
|
(3.3)%
|
|
$
|
1,592
|
|
|
|
$
|
1,612
|
|
|
(3.6)%
|
|
$
|
1,672
|
|
Gross Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
7.5
|
%
|
|
|
|
8.2
|
%
|
|
|
7.9
|
%
|
|
|
|
8.6
|
%
|
||||
U.K.
|
|
5.9
|
%
|
|
|
|
6.5
|
%
|
|
|
5.9
|
%
|
|
|
|
6.2
|
%
|
||||
Brazil
|
|
6.3
|
%
|
|
|
|
6.4
|
%
|
|
|
6.2
|
%
|
|
|
|
5.2
|
%
|
||||
Total Same Stores
|
|
7.2
|
%
|
|
|
|
7.9
|
%
|
|
|
7.6
|
%
|
|
|
|
8.2
|
%
|
||||
Transactions
|
|
7.0
|
%
|
|
|
|
6.2
|
%
|
|
|
8.0
|
%
|
|
|
|
7.6
|
%
|
||||
Total
|
|
7.2
|
%
|
|
|
|
7.8
|
%
|
|
|
7.6
|
%
|
|
|
|
8.2
|
%
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||
|
|
2014
|
|
% Change
|
|
2013
|
|
|
2014
|
|
% Change
|
|
2013
|
||||||||
Wholesale Unit Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
10,800
|
|
|
6.6%
|
|
10,128
|
|
|
|
30,203
|
|
|
5.0%
|
|
28,766
|
|
||||
U.K.
|
|
2,183
|
|
|
5.1%
|
|
2,078
|
|
|
|
6,102
|
|
|
5.7%
|
|
5,772
|
|
||||
Brazil
|
|
571
|
|
|
(37.4)%
|
|
912
|
|
|
|
1,292
|
|
|
(36.3)%
|
|
2,028
|
|
||||
Total Same Stores
|
|
13,554
|
|
|
3.3%
|
|
13,118
|
|
|
|
37,597
|
|
|
2.8%
|
|
36,566
|
|
||||
Transactions
|
|
1,196
|
|
|
|
|
327
|
|
|
|
3,167
|
|
|
|
|
1,286
|
|
||||
Total
|
|
14,750
|
|
|
9.7%
|
|
13,445
|
|
|
|
40,764
|
|
|
7.7%
|
|
37,852
|
|
||||
Wholesale Sales Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
67,404
|
|
|
17.3%
|
|
$
|
57,456
|
|
|
|
$
|
192,324
|
|
|
15.6%
|
|
$
|
166,340
|
|
U.K.
|
|
21,110
|
|
|
24.5%
|
|
16,960
|
|
|
|
60,407
|
|
|
24.1%
|
|
48,682
|
|
||||
Brazil
|
|
3,965
|
|
|
(56.0)%
|
|
9,008
|
|
|
|
10,005
|
|
|
(51.8)%
|
|
20,758
|
|
||||
Total Same Stores
|
|
92,479
|
|
|
10.9%
|
|
83,424
|
|
|
|
262,736
|
|
|
11.4%
|
|
235,780
|
|
||||
Transactions
|
|
7,868
|
|
|
|
|
2,376
|
|
|
|
21,755
|
|
|
|
|
7,887
|
|
||||
Total
|
|
$
|
100,347
|
|
|
17.0%
|
|
$
|
85,800
|
|
|
|
$
|
284,491
|
|
|
16.8%
|
|
$
|
243,667
|
|
Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
(1,091
|
)
|
|
21.2%
|
|
$
|
(900
|
)
|
|
|
$
|
2,416
|
|
|
44.1%
|
|
$
|
1,677
|
|
U.K.
|
|
(175
|
)
|
|
(17.8)%
|
|
(213
|
)
|
|
|
(44
|
)
|
|
(94.1)%
|
|
(743
|
)
|
||||
Brazil
|
|
310
|
|
|
484.9%
|
|
53
|
|
|
|
802
|
|
|
(29.8)%
|
|
1,143
|
|
||||
Total Same Stores
|
|
(956
|
)
|
|
(9.8)%
|
|
(1,060
|
)
|
|
|
3,174
|
|
|
52.8%
|
|
2,077
|
|
||||
Transactions
|
|
(340
|
)
|
|
|
|
(474
|
)
|
|
|
(117
|
)
|
|
|
|
(677
|
)
|
||||
Total
|
|
$
|
(1,296
|
)
|
|
(15.5)%
|
|
$
|
(1,534
|
)
|
|
|
$
|
3,057
|
|
|
118.4%
|
|
$
|
1,400
|
|
Gross Profit per Wholesale Unit Sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
(101
|
)
|
|
13.5%
|
|
$
|
(89
|
)
|
|
|
$
|
80
|
|
|
37.9%
|
|
$
|
58
|
|
U.K.
|
|
$
|
(80
|
)
|
|
(22.3)%
|
|
$
|
(103
|
)
|
|
|
$
|
(7
|
)
|
|
(94.6)%
|
|
$
|
(129
|
)
|
Brazil
|
|
$
|
543
|
|
|
836.2%
|
|
$
|
58
|
|
|
|
$
|
621
|
|
|
10.1%
|
|
$
|
564
|
|
Total Same Stores
|
|
$
|
(71
|
)
|
|
(12.3)%
|
|
$
|
(81
|
)
|
|
|
$
|
84
|
|
|
47.4%
|
|
$
|
57
|
|
Transactions
|
|
$
|
(284
|
)
|
|
|
|
$
|
(1,450
|
)
|
|
|
$
|
(37
|
)
|
|
|
|
$
|
(526
|
)
|
Total
|
|
$
|
(88
|
)
|
|
(22.8)%
|
|
$
|
(114
|
)
|
|
|
$
|
75
|
|
|
102.7%
|
|
$
|
37
|
|
Gross Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
(1.6
|
)%
|
|
|
|
(1.6
|
)%
|
|
|
1.3
|
%
|
|
|
|
1.0
|
%
|
||||
U.K.
|
|
(0.8
|
)%
|
|
|
|
(1.3
|
)%
|
|
|
(0.1
|
)%
|
|
|
|
(1.5
|
)%
|
||||
Brazil
|
|
7.8
|
%
|
|
|
|
0.6
|
%
|
|
|
8.0
|
%
|
|
|
|
5.5
|
%
|
||||
Total Same Stores
|
|
(1.0
|
)%
|
|
|
|
(1.3
|
)%
|
|
|
1.2
|
%
|
|
|
|
0.9
|
%
|
||||
Transactions
|
|
(4.3
|
)%
|
|
|
|
(19.9
|
)%
|
|
|
(0.5
|
)%
|
|
|
|
(8.6
|
)%
|
||||
Total
|
|
(1.3
|
)%
|
|
|
|
(1.8
|
)%
|
|
|
1.1
|
%
|
|
|
|
0.6
|
%
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||
|
|
2014
|
|
% Change
|
|
2013
|
|
|
2014
|
|
% Change
|
|
2013
|
||||||||
Used Vehicle Unit Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
32,980
|
|
|
4.2%
|
|
31,649
|
|
|
|
94,539
|
|
|
2.9%
|
|
91,836
|
|
||||
U.K.
|
|
4,832
|
|
|
5.3%
|
|
4,588
|
|
|
|
13,524
|
|
|
7.9%
|
|
12,534
|
|
||||
Brazil
|
|
1,763
|
|
|
(21.8)%
|
|
2,255
|
|
|
|
4,089
|
|
|
(17.3)%
|
|
4,947
|
|
||||
Total Same Stores
|
|
39,575
|
|
|
2.8%
|
|
38,492
|
|
|
|
112,152
|
|
|
2.6%
|
|
109,317
|
|
||||
Transactions
|
|
3,951
|
|
|
|
|
1,012
|
|
|
|
10,986
|
|
|
|
|
3,466
|
|
||||
Total
|
|
43,526
|
|
|
10.2%
|
|
39,504
|
|
|
|
123,138
|
|
|
9.2%
|
|
112,783
|
|
||||
Sales Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
526,627
|
|
|
8.2%
|
|
$
|
486,936
|
|
|
|
$
|
1,516,726
|
|
|
5.7%
|
|
$
|
1,434,739
|
|
U.K.
|
|
91,274
|
|
|
19.4%
|
|
76,468
|
|
|
|
263,375
|
|
|
24.5%
|
|
211,583
|
|
||||
Brazil
|
|
33,373
|
|
|
(6.3)%
|
|
35,612
|
|
|
|
75,779
|
|
|
(9.0)%
|
|
83,259
|
|
||||
Total Same Stores
|
|
651,274
|
|
|
8.7%
|
|
599,016
|
|
|
|
1,855,880
|
|
|
7.3%
|
|
1,729,581
|
|
||||
Transactions
|
|
64,997
|
|
|
|
|
16,612
|
|
|
|
171,682
|
|
|
|
|
50,117
|
|
||||
Total
|
|
$
|
716,271
|
|
|
16.3%
|
|
$
|
615,628
|
|
|
|
$
|
2,027,562
|
|
|
13.9%
|
|
$
|
1,779,698
|
|
Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
33,212
|
|
|
(2.8)%
|
|
$
|
34,155
|
|
|
|
$
|
107,190
|
|
|
(2.9)%
|
|
$
|
110,382
|
|
U.K.
|
|
3,991
|
|
|
9.8%
|
|
3,635
|
|
|
|
11,952
|
|
|
27.6%
|
|
9,369
|
|
||||
Brazil
|
|
2,172
|
|
|
24.1%
|
|
1,750
|
|
|
|
4,859
|
|
|
10.6%
|
|
4,392
|
|
||||
Total Same Stores
|
|
39,375
|
|
|
(0.4)%
|
|
39,540
|
|
|
|
124,001
|
|
|
(0.1)%
|
|
124,143
|
|
||||
Transactions
|
|
3,640
|
|
|
|
|
408
|
|
|
|
11,834
|
|
|
|
|
2,520
|
|
||||
Total
|
|
$
|
43,015
|
|
|
7.7%
|
|
$
|
39,948
|
|
|
|
$
|
135,835
|
|
|
7.2%
|
|
$
|
126,663
|
|
Gross Profit per Unit Sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
1,007
|
|
|
(6.7)%
|
|
$
|
1,079
|
|
|
|
$
|
1,134
|
|
|
(5.7)%
|
|
$
|
1,202
|
|
U.K.
|
|
$
|
826
|
|
|
4.3%
|
|
$
|
792
|
|
|
|
$
|
884
|
|
|
18.3%
|
|
$
|
747
|
|
Brazil
|
|
$
|
1,232
|
|
|
58.8%
|
|
$
|
776
|
|
|
|
$
|
1,188
|
|
|
33.8%
|
|
$
|
888
|
|
Total Same Stores
|
|
$
|
995
|
|
|
(3.1)%
|
|
$
|
1,027
|
|
|
|
$
|
1,106
|
|
|
(2.6)%
|
|
$
|
1,136
|
|
Transactions
|
|
$
|
921
|
|
|
|
|
$
|
403
|
|
|
|
$
|
1,077
|
|
|
|
|
$
|
727
|
|
Total
|
|
$
|
988
|
|
|
(2.3)%
|
|
$
|
1,011
|
|
|
|
$
|
1,103
|
|
|
(1.8)%
|
|
$
|
1,123
|
|
Gross Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
6.3
|
%
|
|
|
|
7.0
|
%
|
|
|
7.1
|
%
|
|
|
|
7.7
|
%
|
||||
U.K.
|
|
4.4
|
%
|
|
|
|
4.8
|
%
|
|
|
4.5
|
%
|
|
|
|
4.4
|
%
|
||||
Brazil
|
|
6.5
|
%
|
|
|
|
4.9
|
%
|
|
|
6.4
|
%
|
|
|
|
5.3
|
%
|
||||
Total Same Stores
|
|
6.0
|
%
|
|
|
|
6.6
|
%
|
|
|
6.7
|
%
|
|
|
|
7.2
|
%
|
||||
Transactions
|
|
5.6
|
%
|
|
|
|
2.5
|
%
|
|
|
6.9
|
%
|
|
|
|
5.0
|
%
|
||||
Total
|
|
6.0
|
%
|
|
|
|
6.5
|
%
|
|
|
6.7
|
%
|
|
|
|
7.1
|
%
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||
|
|
2014
|
|
% Change
|
|
2013
|
|
|
2014
|
|
% Change
|
|
2013
|
||||||||
Parts and Services Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
225,737
|
|
|
6.1%
|
|
$
|
212,800
|
|
|
|
$
|
669,764
|
|
|
5.6%
|
|
$
|
634,049
|
|
U.K.
|
|
21,272
|
|
|
21.8%
|
|
17,471
|
|
|
|
59,860
|
|
|
21.5%
|
|
49,265
|
|
||||
Brazil
|
|
20,560
|
|
|
8.4%
|
|
18,966
|
|
|
|
45,622
|
|
|
0.9%
|
|
45,193
|
|
||||
Total Same Stores
|
|
267,569
|
|
|
7.4%
|
|
249,237
|
|
|
|
775,246
|
|
|
6.4%
|
|
728,507
|
|
||||
Transactions
|
|
24,247
|
|
|
|
|
6,079
|
|
|
|
69,094
|
|
|
|
|
25,269
|
|
||||
Total
|
|
$
|
291,816
|
|
|
14.3%
|
|
$
|
255,316
|
|
|
|
$
|
844,340
|
|
|
12.0%
|
|
$
|
753,776
|
|
Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
120,951
|
|
|
7.5%
|
|
$
|
112,461
|
|
|
|
$
|
358,367
|
|
|
6.3%
|
|
$
|
337,018
|
|
U.K.
|
|
11,748
|
|
|
20.0%
|
|
9,794
|
|
|
|
33,098
|
|
|
23.2%
|
|
26,862
|
|
||||
Brazil
|
|
8,627
|
|
|
7.8%
|
|
8,003
|
|
|
|
19,150
|
|
|
4.7%
|
|
18,293
|
|
||||
Total Same Stores
|
|
141,326
|
|
|
8.5%
|
|
130,258
|
|
|
|
410,615
|
|
|
7.4%
|
|
382,173
|
|
||||
Transactions
|
|
13,023
|
|
|
|
|
3,425
|
|
|
|
36,646
|
|
|
|
|
13,599
|
|
||||
Total
|
|
$
|
154,349
|
|
|
15.5%
|
|
$
|
133,683
|
|
|
|
$
|
447,261
|
|
|
13.0%
|
|
$
|
395,772
|
|
Gross Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
53.6
|
%
|
|
|
|
52.8
|
%
|
|
|
53.5
|
%
|
|
|
|
53.2
|
%
|
||||
U.K.
|
|
55.2
|
%
|
|
|
|
56.1
|
%
|
|
|
55.3
|
%
|
|
|
|
54.5
|
%
|
||||
Brazil
|
|
42.0
|
%
|
|
|
|
42.2
|
%
|
|
|
42.0
|
%
|
|
|
|
40.5
|
%
|
||||
Total Same Stores
|
|
52.8
|
%
|
|
|
|
52.3
|
%
|
|
|
53.0
|
%
|
|
|
|
52.5
|
%
|
||||
Transactions
|
|
53.7
|
%
|
|
|
|
56.3
|
%
|
|
|
53.0
|
%
|
|
|
|
53.8
|
%
|
||||
Total
|
|
52.9
|
%
|
|
|
|
52.4
|
%
|
|
|
53.0
|
%
|
|
|
|
52.5
|
%
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||
|
|
2014
|
|
% Change
|
|
2013
|
|
|
2014
|
|
% Change
|
|
2013
|
||||||||
Retail New and Used Unit Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
55,280
|
|
|
3.8%
|
|
53,238
|
|
|
|
157,783
|
|
|
2.9%
|
|
153,353
|
|
||||
U.K.
|
|
6,422
|
|
|
(5.8)%
|
|
6,816
|
|
|
|
18,150
|
|
|
3.7%
|
|
17,500
|
|
||||
Brazil
|
|
5,205
|
|
|
(19.7)%
|
|
6,482
|
|
|
|
12,140
|
|
|
(18.4)%
|
|
14,886
|
|
||||
Total Same Stores
|
|
66,907
|
|
|
0.6%
|
|
66,536
|
|
|
|
188,073
|
|
|
1.3%
|
|
185,739
|
|
||||
Transactions
|
|
6,363
|
|
|
|
|
1,834
|
|
|
|
19,000
|
|
|
|
|
6,130
|
|
||||
Total
|
|
73,270
|
|
|
7.2%
|
|
68,370
|
|
|
|
207,073
|
|
|
7.9%
|
|
191,869
|
|
||||
Retail Finance Fees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
25,846
|
|
|
6.5%
|
|
$
|
24,265
|
|
|
|
$
|
75,004
|
|
|
5.9%
|
|
$
|
70,830
|
|
U.K.
|
|
2,847
|
|
|
19.3%
|
|
2,386
|
|
|
|
7,958
|
|
|
31.0%
|
|
6,075
|
|
||||
Brazil
|
|
713
|
|
|
(12.7)%
|
|
817
|
|
|
|
1,478
|
|
|
(16.3)%
|
|
1,766
|
|
||||
Total Same Stores
|
|
29,406
|
|
|
7.1%
|
|
27,468
|
|
|
|
84,440
|
|
|
7.3%
|
|
78,671
|
|
||||
Transactions
|
|
2,935
|
|
|
|
|
682
|
|
|
|
6,937
|
|
|
|
|
2,388
|
|
||||
Total
|
|
$
|
32,341
|
|
|
14.9%
|
|
$
|
28,150
|
|
|
|
$
|
91,377
|
|
|
12.7%
|
|
$
|
81,059
|
|
Vehicle Service Contract Fees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
32,259
|
|
|
6.9%
|
|
$
|
30,175
|
|
|
|
$
|
92,897
|
|
|
9.2%
|
|
$
|
85,080
|
|
U.K.
|
|
96
|
|
|
12.9%
|
|
85
|
|
|
|
190
|
|
|
34.8%
|
|
141
|
|
||||
Brazil
|
|
—
|
|
|
—%
|
|
—
|
|
|
|
—
|
|
|
—%
|
|
—
|
|
||||
Total Same Stores
|
|
32,355
|
|
|
6.9%
|
|
30,260
|
|
|
|
93,087
|
|
|
9.2%
|
|
85,221
|
|
||||
Transactions
|
|
2,559
|
|
|
|
|
255
|
|
|
|
5,128
|
|
|
|
|
1,888
|
|
||||
Total
|
|
$
|
34,914
|
|
|
14.4%
|
|
$
|
30,515
|
|
|
|
$
|
98,215
|
|
|
12.7%
|
|
$
|
87,109
|
|
Insurance and Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
23,448
|
|
|
17.0%
|
|
$
|
20,039
|
|
|
|
$
|
65,525
|
|
|
19.5%
|
|
$
|
54,816
|
|
U.K.
|
|
1,854
|
|
|
5.2%
|
|
1,762
|
|
|
|
5,133
|
|
|
19.0%
|
|
4,314
|
|
||||
Brazil
|
|
2,338
|
|
|
33.3%
|
|
1,754
|
|
|
|
5,054
|
|
|
26.3%
|
|
4,002
|
|
||||
Total Same Stores
|
|
27,640
|
|
|
17.3%
|
|
23,555
|
|
|
|
75,712
|
|
|
19.9%
|
|
63,132
|
|
||||
Transactions
|
|
2,220
|
|
|
|
|
316
|
|
|
|
5,597
|
|
|
|
|
1,194
|
|
||||
Total
|
|
$
|
29,860
|
|
|
25.1%
|
|
$
|
23,871
|
|
|
|
$
|
81,309
|
|
|
26.4%
|
|
$
|
64,326
|
|
Total Finance and Insurance Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
81,553
|
|
|
9.5%
|
|
$
|
74,479
|
|
|
|
$
|
233,426
|
|
|
10.8%
|
|
$
|
210,726
|
|
U.K.
|
|
4,797
|
|
|
13.3%
|
|
4,233
|
|
|
|
13,281
|
|
|
26.1%
|
|
10,530
|
|
||||
Brazil
|
|
3,051
|
|
|
18.7%
|
|
2,571
|
|
|
|
6,532
|
|
|
13.2%
|
|
5,768
|
|
||||
Total Same Stores
|
|
89,401
|
|
|
10.0%
|
|
81,283
|
|
|
|
253,239
|
|
|
11.5%
|
|
227,024
|
|
||||
Transactions
|
|
7,714
|
|
|
|
|
1,253
|
|
|
|
17,662
|
|
|
|
|
5,470
|
|
||||
Total
|
|
$
|
97,115
|
|
|
17.7%
|
|
$
|
82,536
|
|
|
|
$
|
270,901
|
|
|
16.5%
|
|
$
|
232,494
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||
|
|
2014
|
|
% Change
|
|
2013
|
|
|
2014
|
|
% Change
|
|
2013
|
||||||||
Personnel
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
130,967
|
|
|
5.3%
|
|
$
|
124,323
|
|
|
|
$
|
385,687
|
|
|
3.3%
|
|
$
|
373,310
|
|
U.K.
|
|
13,421
|
|
|
17.9%
|
|
11,387
|
|
|
|
38,464
|
|
|
22.1%
|
|
31,490
|
|
||||
Brazil
|
|
10,713
|
|
|
(9.0)%
|
|
11,767
|
|
|
|
24,999
|
|
|
(10.5)%
|
|
27,926
|
|
||||
Total Same Stores
|
|
155,101
|
|
|
5.2%
|
|
147,477
|
|
|
|
449,150
|
|
|
3.8%
|
|
432,726
|
|
||||
Transactions
|
|
15,450
|
|
|
|
|
4,295
|
|
|
|
41,962
|
|
|
|
|
14,346
|
|
||||
Total
|
|
$
|
170,551
|
|
|
12.4%
|
|
$
|
151,772
|
|
|
|
$
|
491,112
|
|
|
9.9%
|
|
$
|
447,072
|
|
Advertising
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
15,579
|
|
|
10.6%
|
|
$
|
14,082
|
|
|
|
$
|
46,388
|
|
|
18.4%
|
|
$
|
39,185
|
|
U.K.
|
|
969
|
|
|
6.7%
|
|
908
|
|
|
|
2,850
|
|
|
36.0%
|
|
2,095
|
|
||||
Brazil
|
|
454
|
|
|
(20.4)%
|
|
570
|
|
|
|
1,266
|
|
|
(10.8)%
|
|
1,419
|
|
||||
Total Same Stores
|
|
17,002
|
|
|
9.3%
|
|
15,560
|
|
|
|
50,504
|
|
|
18.3%
|
|
42,699
|
|
||||
Transactions
|
|
1,958
|
|
|
|
|
453
|
|
|
|
4,758
|
|
|
|
|
1,867
|
|
||||
Total
|
|
$
|
18,960
|
|
|
18.4%
|
|
$
|
16,013
|
|
|
|
$
|
55,262
|
|
|
24.0%
|
|
$
|
44,566
|
|
Rent and Facility Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
20,289
|
|
|
(0.1)%
|
|
$
|
20,306
|
|
|
|
$
|
63,011
|
|
|
1.5%
|
|
$
|
62,104
|
|
U.K.
|
|
2,234
|
|
|
14.2%
|
|
1,957
|
|
|
|
6,210
|
|
|
2.5%
|
|
6,058
|
|
||||
Brazil
|
|
4,034
|
|
|
2.1%
|
|
3,952
|
|
|
|
9,470
|
|
|
(2.8)%
|
|
9,745
|
|
||||
Total Same Stores
|
|
26,557
|
|
|
1.3%
|
|
26,215
|
|
|
|
78,691
|
|
|
1.0%
|
|
77,907
|
|
||||
Transactions
|
|
2,564
|
|
|
|
|
1,548
|
|
|
|
8,527
|
|
|
|
|
5,453
|
|
||||
Total
|
|
$
|
29,121
|
|
|
4.9%
|
|
$
|
27,763
|
|
|
|
$
|
87,218
|
|
|
4.6%
|
|
$
|
83,360
|
|
Other SG&A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
43,347
|
|
|
6.7%
|
|
$
|
40,621
|
|
|
|
$
|
128,979
|
|
|
(4.4)%
|
|
$
|
134,935
|
|
U.K.
|
|
5,654
|
|
|
4.5%
|
|
5,410
|
|
|
|
16,730
|
|
|
14.5%
|
|
14,616
|
|
||||
Brazil
|
|
4,691
|
|
|
9.6%
|
|
4,282
|
|
|
|
11,780
|
|
|
5.5%
|
|
11,164
|
|
||||
Total Same Stores
|
|
53,692
|
|
|
6.7%
|
|
50,313
|
|
|
|
157,489
|
|
|
(2.0)%
|
|
160,715
|
|
||||
Transactions
|
|
(8,091
|
)
|
|
|
|
1,002
|
|
|
|
2,680
|
|
|
|
|
(4,258
|
)
|
||||
Total
|
|
$
|
45,601
|
|
|
(11.1)%
|
|
$
|
51,315
|
|
|
|
$
|
160,169
|
|
|
2.4%
|
|
$
|
156,457
|
|
Total SG&A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
210,182
|
|
|
5.4%
|
|
$
|
199,332
|
|
|
|
$
|
624,065
|
|
|
2.4%
|
|
$
|
609,534
|
|
U.K.
|
|
22,278
|
|
|
13.3%
|
|
19,662
|
|
|
|
64,254
|
|
|
18.4%
|
|
54,259
|
|
||||
Brazil
|
|
19,892
|
|
|
(3.3)%
|
|
20,571
|
|
|
|
47,515
|
|
|
(5.5)%
|
|
50,254
|
|
||||
Total Same Stores
|
|
252,352
|
|
|
5.3%
|
|
239,565
|
|
|
|
735,834
|
|
|
3.1%
|
|
714,047
|
|
||||
Transactions
|
|
11,881
|
|
|
|
|
7,298
|
|
|
|
57,927
|
|
|
|
|
17,408
|
|
||||
Total
|
|
$
|
264,233
|
|
|
7.0%
|
|
$
|
246,863
|
|
|
|
$
|
793,761
|
|
|
8.5%
|
|
$
|
731,455
|
|
Total Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
291,172
|
|
|
6.4%
|
|
$
|
273,543
|
|
|
|
$
|
859,848
|
|
|
5.2%
|
|
$
|
817,726
|
|
U.K.
|
|
29,839
|
|
|
17.0%
|
|
25,510
|
|
|
|
84,845
|
|
|
24.1%
|
|
68,390
|
|
||||
Brazil
|
|
22,733
|
|
|
(4.0)%
|
|
23,683
|
|
|
|
51,139
|
|
|
(13.5)%
|
|
59,114
|
|
||||
Total Same Stores
|
|
343,744
|
|
|
6.5%
|
|
322,736
|
|
|
|
995,832
|
|
|
5.4%
|
|
945,230
|
|
||||
Transactions
|
|
30,965
|
|
|
|
|
6,726
|
|
|
|
86,147
|
|
|
|
|
25,995
|
|
||||
Total
|
|
$
|
374,709
|
|
|
13.7%
|
|
$
|
329,462
|
|
|
|
$
|
1,081,979
|
|
|
11.4%
|
|
$
|
971,225
|
|
SG&A as a % of Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
72.2
|
%
|
|
|
|
72.9
|
%
|
|
|
72.6
|
%
|
|
|
|
74.5
|
%
|
||||
U.K.
|
|
74.7
|
%
|
|
|
|
77.1
|
%
|
|
|
75.7
|
%
|
|
|
|
79.3
|
%
|
||||
Brazil
|
|
87.5
|
%
|
|
|
|
86.9
|
%
|
|
|
92.9
|
%
|
|
|
|
85.0
|
%
|
||||
Total Same Stores
|
|
73.4
|
%
|
|
|
|
74.2
|
%
|
|
|
73.9
|
%
|
|
|
|
75.5
|
%
|
||||
Transactions
|
|
38.4
|
%
|
|
|
|
108.5
|
%
|
|
|
67.2
|
%
|
|
|
|
67.0
|
%
|
||||
Total
|
|
70.5
|
%
|
|
|
|
74.9
|
%
|
|
|
73.4
|
%
|
|
|
|
75.3
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Employees
|
|
12,000
|
|
|
|
|
11,000
|
|
|
|
12,000
|
|
|
|
|
11,000
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||
|
|
2014
|
|
% Change
|
|
2013
|
|
|
2014
|
|
% Change
|
|
2013
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
8,384
|
|
|
4.2%
|
|
$
|
8,049
|
|
|
|
$
|
25,251
|
|
|
9.4%
|
|
$
|
23,081
|
|
U.K.
|
|
862
|
|
|
37.9%
|
|
625
|
|
|
|
2,314
|
|
|
24.5%
|
|
1,859
|
|
||||
Brazil
|
|
522
|
|
|
10.8%
|
|
471
|
|
|
|
1,206
|
|
|
10.6%
|
|
1,090
|
|
||||
Total Same Stores
|
|
9,768
|
|
|
6.8%
|
|
9,145
|
|
|
|
28,771
|
|
|
10.5%
|
|
26,030
|
|
||||
Transactions
|
|
978
|
|
|
|
|
(52
|
)
|
|
|
2,653
|
|
|
|
|
360
|
|
||||
Total
|
|
$
|
10,746
|
|
|
18.2%
|
|
$
|
9,093
|
|
|
|
$
|
31,424
|
|
|
19.1%
|
|
$
|
26,390
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||
|
|
2014
|
|
% Change
|
|
2013
|
|
|
2014
|
|
% Change
|
|
2013
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
7,822
|
|
|
(0.8)%
|
|
$
|
7,888
|
|
|
|
$
|
23,706
|
|
|
(2.8)%
|
|
$
|
24,401
|
|
U.K.
|
|
419
|
|
|
(1.4)%
|
|
425
|
|
|
|
1,166
|
|
|
1.2%
|
|
1,152
|
|
||||
Brazil
|
|
1,490
|
|
|
(31.6)%
|
|
2,178
|
|
|
|
3,798
|
|
|
(20.0)%
|
|
4,748
|
|
||||
Total Same Stores
|
|
9,731
|
|
|
(7.2)%
|
|
10,491
|
|
|
|
28,670
|
|
|
(5.4)%
|
|
30,301
|
|
||||
Transactions
|
|
721
|
|
|
|
|
199
|
|
|
|
3,025
|
|
|
|
|
626
|
|
||||
Total
|
|
$
|
10,452
|
|
|
(2.2)%
|
|
$
|
10,690
|
|
|
|
$
|
31,695
|
|
|
2.5%
|
|
$
|
30,927
|
|
Memo:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total manufacturer’s assistance
|
|
$
|
12,122
|
|
|
18.6%
|
|
$
|
10,219
|
|
|
|
$
|
33,473
|
|
|
17.9%
|
|
$
|
28,402
|
|
|
|
Nine Months Ended September 30,
|
||||||
|
|
2014
|
|
2013
|
||||
|
|
(In thousands)
|
||||||
Adjusted net cash provided by operating activities
|
|
$
|
215,148
|
|
|
$
|
147,060
|
|
Adjusted net cash used in investing activities
|
|
(235,039
|
)
|
|
(93,741
|
)
|
||
Adjusted net cash provided by (used in) financing activities
|
|
50,891
|
|
|
(29,394
|
)
|
||
Effect of exchange rate changes on cash
|
|
(563
|
)
|
|
(2,297
|
)
|
||
Net increase in cash and cash equivalents
|
|
$
|
30,437
|
|
|
$
|
21,628
|
|
|
As of September 30, 2014
|
|||
|
Required
|
|
Actual
|
|
Senior Secured Adjusted Leverage Ratio
|
< 3.75
|
|
1.97
|
|
Total Adjusted Leverage Ratio
|
< 5.50
|
|
3.45
|
|
Fixed Charge Coverage Ratio
|
> 1.35
|
|
2.21
|
|
|
|
As of September 30, 2014
|
||||||||||
U.S. Credit Facility
|
|
Total
Commitment
|
|
Outstanding
|
|
Available
|
||||||
|
|
|
|
(In thousands)
|
|
|
||||||
Floorplan Line
(1)
|
|
$
|
1,380,000
|
|
|
$
|
1,029,809
|
|
|
$
|
350,191
|
|
Acquisition Line
(2)
|
|
320,000
|
|
|
43,154
|
|
|
252,337
|
|
|||
Total Revolving Credit Facility
|
|
1,700,000
|
|
|
1,072,963
|
|
|
602,528
|
|
|||
FMCC Facility
(3)
|
|
300,000
|
|
|
146,108
|
|
|
153,892
|
|
|||
Total U.S. Credit Facilities
(4)
|
|
$
|
2,000,000
|
|
|
$
|
1,219,071
|
|
|
$
|
756,420
|
|
(1)
|
The available balance at
September 30, 2014
includes
$37.5 million
of immediately available funds.
|
(2)
|
The outstanding balance of
$43.2 million
is related to outstanding letters of credit. The available borrowings may be limited from time-to-time, based
|
(3)
|
The available balance at
September 30, 2014
includes $
25.0 million
of immediately available funds.
|
(4)
|
The outstanding balance excludes
$132.5 million
of borrowings with manufacturer-affiliates and third-party financial institutions for foreign and rental vehicle financing not associated with any of our U.S. credit facilities.
|
|
|
Nine Months Ended September 30,
|
|||||||||
|
|
2014
|
|
2013
|
|
% Change
|
|||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|||||
Net cash provided by operating activities
|
|
$
|
271,836
|
|
|
$
|
128,966
|
|
|
110.8
|
|
Change in floorplan notes payable-credit facilities, excluding floorplan offset account and net acquisition and disposition related activity
|
|
(62,158
|
)
|
|
26,155
|
|
|
|
|||
Change in floorplan notes payable-manufacturer affiliates associated with net acquisition and disposition related activity
|
|
5,470
|
|
|
(8,061
|
)
|
|
|
|||
Adjusted net cash provided by operating activities
|
|
$
|
215,148
|
|
|
$
|
147,060
|
|
|
46.3
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|||||
Net cash used in investing activities
|
|
$
|
(267,634
|
)
|
|
$
|
(66,586
|
)
|
|
301.9
|
|
Change in cash paid for acquisitions, associated with floorplan notes payable
|
|
92,112
|
|
|
18,276
|
|
|
|
|||
Change in proceeds from disposition of franchises, property and equipment, associated with floorplan notes payable
|
|
(59,517
|
)
|
|
(45,431
|
)
|
|
|
|||
Adjusted net cash used in investing activities
|
|
$
|
(235,039
|
)
|
|
$
|
(93,741
|
)
|
|
150.7
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|||||
Net cash provided by (used in) financing activities
|
|
$
|
26,798
|
|
|
$
|
(38,455
|
)
|
|
(169.7
|
)
|
Change in net borrowings and repayments on floorplan notes payable-credit facilities, excluding net activity associated with our floorplan offset account
|
|
24,093
|
|
|
9,061
|
|
|
|
|||
Adjusted net cash provided by (used in) financing activities
|
|
$
|
50,891
|
|
|
$
|
(29,394
|
)
|
|
(273.1
|
)
|
|
|
Q4 2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
2021
|
||||||||||||||||
Notional amount in effect at the end of period
|
|
$
|
563
|
|
|
$
|
562
|
|
|
$
|
612
|
|
|
$
|
411
|
|
|
$
|
360
|
|
|
$
|
160
|
|
|
$
|
9
|
|
|
$
|
—
|
|
Weighted average interest rate during the period
|
|
2.62
|
%
|
|
2.55
|
%
|
|
2.75
|
%
|
|
2.68
|
%
|
|
2.80
|
%
|
|
2.68
|
%
|
|
2.88
|
%
|
|
2.21
|
%
|
Period
|
|
Total Number of Shares Purchased
(1)
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
(2)
|
||||||
|
|
|
|
|
|
|
|
(In thousands, excluding commissions)
|
||||||
July 1 - July 31, 2014
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
54,511
|
|
August 1 - August 31, 2014
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
54,511
|
|
September 1 - September 30, 2014
|
|
651,509
|
|
|
$
|
60.66
|
|
|
230,200
|
|
|
$
|
37,687
|
|
Total
|
|
651,509
|
|
|
$
|
60.66
|
|
|
230,200
|
|
|
|
|
|
|
|
|
Group 1 Automotive, Inc.
|
|
|
|
|
By:
|
/s/ John C. Rickel
|
|
|
John C. Rickel
|
|
|
Senior Vice President and Chief Financial Officer
|
|
|
(Duly Authorized Officer and Principal Financial
|
|
|
and Accounting Officer)
|
|
|
|
|
|
Exhibit
Number
|
|
|
|
Description
|
|
|
|
|
|
1.1
|
|
—
|
|
Purchase Agreement dated as of September 4, 2014, by and among Group 1 Automotive, Inc., the guarantors party thereto and J.P. Morgan Securities LLC, as representative of the initial purchasers named therein (incorporated by reference to Exhibit 1.1 to Group 1 Automotive, Inc.’s Current Report on Form 8-K (File No. 001-13461) filed September 5, 2014)
|
3.1
|
|
—
|
|
Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 of Group 1 Automotive, Inc.’s Registration Statement on Form S-1 (Registration No. 333-29893) filed June 24, 1997)
|
3.2
|
|
—
|
|
Amended and Restated Bylaws of Group 1 Automotive, Inc. (incorporated by reference to Exhibit 3.1 of Group 1 Automotive, Inc.’s Current Report on Form 8-K (File No. 001-13461) filed November 13, 2007)
|
4.1
|
|
—
|
|
Registration Rights Agreement, dated as of September 9, 2014, by and among Group 1 Automotive, Inc., the guarantors party thereto and J.P. Morgan Securities LLC, as representative of the initial purchasers named therein (incorporated by reference to Exhibit 4.1 to Group 1 Automotive, Inc.’s Current Report on Form 8-K (File No. 001-13461) filed September 11, 2014)
|
10.1
|
|
—
|
|
Unwind Agreement between Group 1 Automotive, Inc. and JPMorgan Chase Bank, National Association, dated July 25, 2014 (incorporated by reference to Exhibit 10.1 to Group 1 Automotive, Inc.’s Current Report on Form 8-K (File No. 001-13461) filed July 31, 2014)
|
10.2
|
|
—
|
|
Unwind Agreement between Group 1 Automotive, Inc. and Bank of America, N.A., dated July 25, 2014 (incorporated by reference to Exhibit 10.2 to Group 1 Automotive, Inc.’s Current Report on Form 8-K (File No. 001-13461) filed July 31, 2014)
|
10.3
†
*
|
|
—
|
|
Form of Senior Executive Restricted Stock Agreement
|
10.4†*
|
|
—
|
|
Form of Restricted Stock Agreement with Qualified Retirement Provisions
|
10.5†*
|
|
—
|
|
Form of Restricted Stock Agreement for Employees
|
10.6†*
|
|
—
|
|
Form of Restricted Stock Agreement for Non-Employee Directors
|
10.7†*
|
|
—
|
|
Form of Phantom Stock Agreement for Non-Employee Directors
|
10.8†*
|
|
—
|
|
Form of Performance-Based Restricted Stock Agreement
|
31.1*
|
|
—
|
|
Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
31.2*
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—
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Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
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32.1*
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—
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Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
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32.2*
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—
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Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
101.INS*
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—
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XBRL Instance Document
|
101.SCH*
|
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—
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XBRL Taxonomy Extension Schema Document
|
101.CAL*
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—
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XBRL Taxonomy Extension Calculation Linkbase Document
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101.DEF*
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|
—
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XBRL Taxonomy Extension Definition Linkbase Document
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101.LAB*
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—
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XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE*
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—
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XBRL Taxonomy Extension Presentation Linkbase Document
|
*
|
|
Filed or furnished herewith
|
†
|
|
Management contract or compensatory plan or arrangement
|
(a)
|
“
Business
” means the business of auto retailing (whether public or private), automobile dealership consolidation and any other business that is the same as, or competitive with, the business in which Employee was engaged during Employee’s employment by the Company and its Affiliates. Notwithstanding the foregoing, the “Business” shall not include automotive manufacturing or any business in which the Company and its Affiliates have permanently refrained from engaging.
|
(b)
|
“
Restricted Area
” means the geographic area within a 50-mile radius of any automotive dealership in which the Company or an Affiliate has an ownership interest as of the date of the termination of Employee’s employment by the Company
,
which such area includes, without limitation, the Louisiana parishes listed on Annex 1; provided, however, that the Restricted Area shall not include any area within the State of California.
|
Performance Period End Date
|
Performance Target
|
Number of Shares
Subject to Vesting
|
[Insert]
|
[Insert]
|
[Insert]
|
[1.
|
Gross Margin:
The Company must have a total gross margin of [
__
]% for such Performance Period.
|
2.
|
Same Store Revenue Growth:
The Company’s same store revenue growth (expressed as a percentage and based on total revenue) for such Performance Period shall be at or above the median same store revenue growth for the Peer Organizations (as may be defined from time to time) for such Performance Period.
|
3.
|
Reduction of SG&A:
The Company must experience a reduction of sales, general and administrative (“SG&A”) expenses, expressed as a percentage of gross profit, during such
|
Calendar Year
|
Level of SG&A Expenses
|
|
|
[Insert]
|
[Insert]
|
1.
|
The occurrence of a natural disaster in a county or parish in which a dealership of the Company is located, if such natural disaster results in the declaration by the federal government that the county or parish has experienced a major disaster or, in the case of a dealership located in the United Kingdom, a declaration is made by the applicable governmental authority that the county or parish in which such dealership is located experienced a disaster that entitles persons in such county to apply for governmental disaster assistance.
|
2.
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The discontinuation of the production of new automobiles by an automobile manufacturer that supplies Company dealerships or the loss by the Company or particular dealerships of the Company of franchise rights from such a manufacturer.
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1.
|
I have reviewed this Quarterly Report on Form 10-Q for the period ended
September 30, 2014
of Group 1 Automotive, Inc. (“registrant”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ Earl J. Hesterberg
|
Earl J. Hesterberg
|
Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the period ended
September 30, 2014
of Group 1 Automotive, Inc. (“registrant”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ John C. Rickel
|
John C. Rickel
|
Chief Financial Officer
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Earl J. Hesterberg
|
Earl J. Hesterberg
|
Chief Executive Officer
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ John C. Rickel
|
John C. Rickel
|
Chief Financial Officer
|