|
|
|
|
|
|
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
|
¨
|
|
¨
|
Smaller reporting company
|
|
|
|
|
|
|
|
|
¨
|
Emerging growth company
|
|
|
|
|
||
Item 1.
|
||
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
|
|
|
||
Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 6.
|
||
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
(Unaudited, in thousands, except per share amounts)
|
||||||||||||||
REVENUES:
|
|
|
|
|
|
|
|
|
||||||||
New vehicle retail sales
|
|
$
|
1,539,498
|
|
|
$
|
1,710,241
|
|
|
$
|
4,608,658
|
|
|
$
|
4,496,222
|
|
Used vehicle retail sales
|
|
792,405
|
|
|
743,038
|
|
|
2,394,828
|
|
|
2,089,914
|
|
||||
Used vehicle wholesale sales
|
|
86,570
|
|
|
104,827
|
|
|
283,453
|
|
|
308,361
|
|
||||
Parts and service sales
|
|
354,501
|
|
|
343,193
|
|
|
1,062,145
|
|
|
994,522
|
|
||||
Finance, insurance and other, net
|
|
116,084
|
|
|
110,993
|
|
|
343,462
|
|
|
314,297
|
|
||||
Total revenues
|
|
2,889,058
|
|
|
3,012,292
|
|
|
8,692,546
|
|
|
8,203,316
|
|
||||
COST OF SALES:
|
|
|
|
|
|
|
|
|
||||||||
New vehicle retail sales
|
|
1,461,896
|
|
|
1,621,909
|
|
|
4,379,047
|
|
|
4,263,752
|
|
||||
Used vehicle retail sales
|
|
742,250
|
|
|
695,915
|
|
|
2,249,964
|
|
|
1,952,873
|
|
||||
Used vehicle wholesale sales
|
|
86,884
|
|
|
105,012
|
|
|
281,871
|
|
|
308,713
|
|
||||
Parts and service sales
|
|
162,927
|
|
|
158,036
|
|
|
488,637
|
|
|
458,144
|
|
||||
Total cost of sales
|
|
2,453,957
|
|
|
2,580,872
|
|
|
7,399,519
|
|
|
6,983,482
|
|
||||
GROSS PROFIT
|
|
435,101
|
|
|
431,420
|
|
|
1,293,027
|
|
|
1,219,834
|
|
||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
|
|
316,771
|
|
|
328,327
|
|
|
949,210
|
|
|
916,674
|
|
||||
DEPRECIATION AND AMORTIZATION EXPENSE
|
|
16,981
|
|
|
15,059
|
|
|
49,961
|
|
|
42,758
|
|
||||
ASSET IMPAIRMENTS
|
|
23,159
|
|
|
9,526
|
|
|
27,427
|
|
|
9,526
|
|
||||
INCOME FROM OPERATIONS
|
|
78,190
|
|
|
78,508
|
|
|
266,429
|
|
|
250,876
|
|
||||
OTHER EXPENSE:
|
|
|
|
|
|
|
|
|
||||||||
Floorplan interest expense
|
|
(14,685
|
)
|
|
(13,491
|
)
|
|
(43,335
|
)
|
|
(38,659
|
)
|
||||
Other interest expense, net
|
|
(19,140
|
)
|
|
(17,874
|
)
|
|
(57,374
|
)
|
|
(52,188
|
)
|
||||
INCOME BEFORE INCOME TAXES
|
|
44,365
|
|
|
47,143
|
|
|
165,720
|
|
|
160,029
|
|
||||
PROVISION FOR INCOME TAXES
|
|
(9,587
|
)
|
|
(17,262
|
)
|
|
(38,666
|
)
|
|
(57,076
|
)
|
||||
NET INCOME
|
|
$
|
34,778
|
|
|
$
|
29,881
|
|
|
$
|
127,054
|
|
|
$
|
102,953
|
|
BASIC EARNINGS PER SHARE
|
|
$
|
1.74
|
|
|
$
|
1.43
|
|
|
$
|
6.18
|
|
|
$
|
4.85
|
|
Weighted average common shares outstanding
|
|
19,253
|
|
|
20,222
|
|
|
19,859
|
|
|
20,475
|
|
||||
DILUTED EARNINGS PER SHARE
|
|
$
|
1.74
|
|
|
$
|
1.43
|
|
|
$
|
6.18
|
|
|
$
|
4.85
|
|
Weighted average common shares outstanding
|
|
19,261
|
|
|
20,225
|
|
|
19,868
|
|
|
20,480
|
|
||||
CASH DIVIDENDS PER COMMON SHARE
|
|
$
|
0.26
|
|
|
$
|
0.24
|
|
|
$
|
0.78
|
|
|
$
|
0.72
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
(Unaudited, in thousands)
|
||||||||||||||
NET INCOME
|
|
$
|
34,778
|
|
|
$
|
29,881
|
|
|
$
|
127,054
|
|
|
$
|
102,953
|
|
Other comprehensive (loss) income, net of taxes:
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustment
|
|
(5,908
|
)
|
|
8,399
|
|
|
(22,223
|
)
|
|
16,998
|
|
||||
Net unrealized gain (loss) on interest rate risk management activities:
|
|
|
|
|
|
|
|
|
||||||||
Unrealized gain (loss) arising during the period, net of tax (provision) benefit of ($846), $154, ($4,416), and $1,462, respectively
|
|
2,680
|
|
|
(257
|
)
|
|
13,985
|
|
|
(2,437
|
)
|
||||
Reclassification adjustment for realized gain on interest rate swap termination included in SG&A, net of tax provision of $220.
|
|
—
|
|
|
—
|
|
|
(698
|
)
|
|
—
|
|
||||
Reclassification adjustment for loss included in interest expense, net of tax benefit of $266, $1,027, $1,080, and $3,581, respectively
|
|
842
|
|
|
1,711
|
|
|
3,418
|
|
|
5,968
|
|
||||
Unrealized gain on interest rate risk management activities, net of tax
|
|
3,522
|
|
|
1,454
|
|
|
16,705
|
|
|
3,531
|
|
||||
OTHER COMPREHENSIVE (LOSS) INCOME, NET OF TAXES
|
|
(2,386
|
)
|
|
9,853
|
|
|
(5,518
|
)
|
|
20,529
|
|
||||
COMPREHENSIVE INCOME
|
|
$
|
32,392
|
|
|
$
|
39,734
|
|
|
$
|
121,536
|
|
|
$
|
123,482
|
|
|
|
Common Stock
|
|
Additional
Paid-in Capital
|
|
Retained Earnings
|
|
Accumulated
Other
Comprehensive Loss
|
|
Treasury Stock
|
|
|
|||||||||||||||
|
|
Shares
|
|
Amount
|
|
|
|
|
|
Total
|
|||||||||||||||||
|
|
(Unaudited, in thousands)
|
|||||||||||||||||||||||||
Balance, December 31, 2017
|
|
25,515
|
|
|
$
|
255
|
|
|
$
|
291,461
|
|
|
$
|
1,246,323
|
|
|
$
|
(123,226
|
)
|
|
$
|
(290,531
|
)
|
|
$
|
1,124,282
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
127,054
|
|
|
—
|
|
|
—
|
|
|
127,054
|
|
||||||
Other comprehensive loss, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,518
|
)
|
|
—
|
|
|
(5,518
|
)
|
||||||
Tax effects reclassified from accumulated other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
150
|
|
|
(150
|
)
|
|
—
|
|
|
—
|
|
||||||
Purchases of treasury stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(108,624
|
)
|
|
(108,624
|
)
|
||||||
Net issuance of treasury shares to employee stock compensation plans
|
|
(21
|
)
|
|
—
|
|
|
(14,996
|
)
|
|
—
|
|
|
—
|
|
|
16,526
|
|
|
1,530
|
|
||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
14,203
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,203
|
|
||||||
Cash dividends, net of estimated forfeitures relative to participating securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15,978
|
)
|
|
—
|
|
|
—
|
|
|
(15,978
|
)
|
||||||
Impact of ASC 606 cumulative adjustment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,397
|
|
|
—
|
|
|
—
|
|
|
11,397
|
|
||||||
Balance, September 30, 2018
|
|
25,494
|
|
|
$
|
255
|
|
|
$
|
290,668
|
|
|
$
|
1,368,946
|
|
|
$
|
(128,894
|
)
|
|
$
|
(382,629
|
)
|
|
$
|
1,148,346
|
|
|
|
Nine Months Ended September 30,
|
||||||
|
|
2018
|
|
2017
|
||||
|
|
(Unaudited, in thousands)
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
||||
Net income
|
|
$
|
127,054
|
|
|
$
|
102,953
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
||||
Depreciation and amortization
|
|
49,961
|
|
|
42,758
|
|
||
Deferred income taxes
|
|
4,088
|
|
|
16,102
|
|
||
Asset impairments
|
|
27,427
|
|
|
9,526
|
|
||
Stock-based compensation
|
|
14,241
|
|
|
14,606
|
|
||
Amortization of debt discount and issue costs
|
|
2,475
|
|
|
2,852
|
|
||
Gain on disposition of assets
|
|
(26,964
|
)
|
|
(848
|
)
|
||
Other
|
|
589
|
|
|
(548
|
)
|
||
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
|
|
|
|
|
||||
Accounts payable and accrued expenses
|
|
35,481
|
|
|
85,163
|
|
||
Accounts and notes receivable
|
|
28,431
|
|
|
(8,892
|
)
|
||
Inventories
|
|
33,737
|
|
|
68,454
|
|
||
Contracts-in-transit and vehicle receivables
|
|
70,211
|
|
|
(15,273
|
)
|
||
Prepaid expenses and other assets
|
|
(22,461
|
)
|
|
(4,930
|
)
|
||
Floorplan notes payable - manufacturer affiliates
|
|
13,923
|
|
|
(5,164
|
)
|
||
Deferred revenues
|
|
(778
|
)
|
|
475
|
|
||
Net cash provided by operating activities
|
|
357,415
|
|
|
307,234
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
||||
Cash paid in acquisitions, net of cash received
|
|
(135,342
|
)
|
|
(109,082
|
)
|
||
Proceeds from disposition of franchises, property and equipment
|
|
107,704
|
|
|
5,133
|
|
||
Purchases of property and equipment, including real estate
|
|
(118,215
|
)
|
|
(144,310
|
)
|
||
Deposits for real estate and dealership acquisitions
|
|
381
|
|
|
—
|
|
||
Other
|
|
—
|
|
|
1,526
|
|
||
Net cash used in investing activities
|
|
(145,472
|
)
|
|
(246,733
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
||||
Borrowings on credit facility - floorplan line and other
|
|
5,106,810
|
|
|
5,053,598
|
|
||
Repayments on credit facility - floorplan line and other
|
|
(5,185,225
|
)
|
|
(5,108,475
|
)
|
||
Borrowings on credit facility - acquisition line
|
|
98,596
|
|
|
68,085
|
|
||
Repayments on credit facility - acquisition line
|
|
(91,450
|
)
|
|
(35,576
|
)
|
||
Borrowings on other debt
|
|
123,298
|
|
|
126,316
|
|
||
Principal payments on other debt
|
|
(105,551
|
)
|
|
(88,701
|
)
|
||
Borrowings on debt related to real estate, net of debt issue costs
|
|
54,712
|
|
|
39,031
|
|
||
Principal payments on debt related to real estate
|
|
(83,242
|
)
|
|
(21,269
|
)
|
||
Employee stock purchase plan purchases, net of employee tax withholdings
|
|
1,529
|
|
|
4,196
|
|
||
Proceeds from termination of mortgage swap
|
|
918
|
|
|
—
|
|
||
Repurchases of common stock, amounts based on settlement date
|
|
(108,623
|
)
|
|
(40,094
|
)
|
||
Dividends paid
|
|
(16,014
|
)
|
|
(15,221
|
)
|
||
Net cash used in financing activities
|
|
(204,242
|
)
|
|
(18,110
|
)
|
||
EFFECT OF EXCHANGE RATE CHANGES ON CASH
|
|
(2,941
|
)
|
|
867
|
|
||
NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH
|
|
4,760
|
|
|
43,258
|
|
||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period
|
|
29,631
|
|
|
24,246
|
|
||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period
|
|
$
|
34,391
|
|
|
$
|
67,504
|
|
SUPPLEMENTAL CASH FLOW INFORMATION:
|
|
|
|
|
||||
Purchases of property and equipment, including real estate, accrued in accounts payable
|
|
$
|
6,131
|
|
|
$
|
10,364
|
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||
|
|
(In thousands)
|
||||||
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
32,027
|
|
|
$
|
28,787
|
|
Restricted cash, included in other assets
|
|
2,364
|
|
|
844
|
|
||
Total cash, cash equivalents, and restricted cash
|
|
$
|
34,391
|
|
|
$
|
29,631
|
|
|
|
January 1, 2018
|
||||||||||
|
|
Balance at
December 31, 2017 |
|
Adjustment due to
Topic 606 |
|
Balance at January 1, 2018 |
||||||
Balance Sheet
|
|
(In thousands)
|
||||||||||
Assets
|
|
|
|
|
|
|
||||||
Accounts and notes receivable, net
|
|
$
|
188,611
|
|
|
$
|
11,623
|
|
|
$
|
200,234
|
|
Inventories, net
|
|
1,763,293
|
|
|
(3,660
|
)
|
|
1,759,633
|
|
|||
Prepaid expense and other current assets
|
|
42,062
|
|
|
8,683
|
|
|
50,745
|
|
|||
|
|
|
|
|
|
|
||||||
Liabilities
|
|
|
|
|
|
|
||||||
Accounts payable
|
|
$
|
412,981
|
|
|
$
|
1,756
|
|
|
$
|
414,737
|
|
Deferred income taxes
|
|
124,404
|
|
|
3,493
|
|
|
127,897
|
|
|||
|
|
|
|
|
|
|
||||||
Stockholders' equity
|
|
|
|
|
|
|
||||||
Retained earnings
|
|
$
|
1,246,323
|
|
|
$
|
11,397
|
|
|
$
|
1,257,720
|
|
|
|
Three Months Ended September 30, 2018
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||||
|
|
As
Reported
|
|
Balances Without Adoption of Topic
606
|
|
Effect of Change
Higher / (Lower)
|
|
|
As
Reported
|
|
Balances Without Adoption of Topic
606
|
|
Effect of Change
Higher / (Lower)
|
||||||||||||
Income Statement
|
|
(In thousands)
|
|
|
(In thousands)
|
||||||||||||||||||||
Revenues
|
|
|
|
|
|
||||||||||||||||||||
Parts and service sales
|
|
$
|
354,501
|
|
|
$
|
353,588
|
|
|
$
|
913
|
|
|
|
$
|
1,062,145
|
|
|
$
|
1,061,160
|
|
|
$
|
985
|
|
Finance, insurance and other, net
|
|
116,084
|
|
|
111,943
|
|
|
4,141
|
|
|
|
343,462
|
|
|
340,139
|
|
|
3,323
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Parts and service sales
|
|
$
|
162,927
|
|
|
$
|
162,601
|
|
|
$
|
326
|
|
|
|
$
|
488,637
|
|
|
$
|
488,412
|
|
|
$
|
225
|
|
Selling, general and administrative expenses
|
|
316,771
|
|
|
316,640
|
|
|
131
|
|
|
|
949,210
|
|
|
948,991
|
|
|
219
|
|
||||||
Provision for income taxes
|
|
9,587
|
|
|
8,490
|
|
|
1,097
|
|
|
|
38,666
|
|
|
37,771
|
|
|
895
|
|
||||||
Net income
|
|
$
|
34,778
|
|
|
$
|
31,278
|
|
|
$
|
3,500
|
|
|
|
$
|
127,054
|
|
|
$
|
124,085
|
|
|
$
|
2,969
|
|
|
|
September 30, 2018
|
||||||||||
|
|
As
Reported
|
|
Balances Without Adoption of Topic 606
|
|
Effect of Change
Higher / (Lower)
|
||||||
Balance Sheet
|
|
(In thousands)
|
||||||||||
Assets
|
|
|
|
|
|
|
||||||
Accounts and notes receivable, net
|
|
$
|
169,318
|
|
|
$
|
156,900
|
|
|
$
|
12,418
|
|
Inventories, net
|
|
1,733,756
|
|
|
1,737,582
|
|
|
(3,826
|
)
|
|||
Prepaid expense and other current assets
|
|
77,996
|
|
|
65,989
|
|
|
12,007
|
|
|||
|
|
|
|
|
|
|
||||||
Liabilities
|
|
|
|
|
|
|
||||||
Accounts payable
|
|
$
|
428,441
|
|
|
$
|
426,505
|
|
|
$
|
1,936
|
|
Deferred income taxes
|
|
137,826
|
|
|
133,453
|
|
|
4,373
|
|
|||
|
|
|
|
|
|
|
||||||
Stockholders' equity
|
|
|
|
|
|
|
||||||
Retained earnings and accumulated other comprehensive loss
|
|
$
|
1,240,052
|
|
|
$
|
1,225,762
|
|
|
$
|
14,290
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
|
2018
|
|
2017
(1)
|
|
2018
|
|
2017
(1)
|
||||||||
|
|
(In thousands)
|
||||||||||||||
REVENUES:
|
|
|
|
|
|
|
|
|
||||||||
New vehicle retail sales
|
|
$
|
1,539,498
|
|
|
$
|
1,710,241
|
|
|
$
|
4,608,658
|
|
|
$
|
4,496,222
|
|
Used vehicle retail sales
|
|
792,405
|
|
|
743,038
|
|
|
2,394,828
|
|
|
2,089,914
|
|
||||
Used vehicle wholesale sales
|
|
86,570
|
|
|
104,827
|
|
|
283,453
|
|
|
308,361
|
|
||||
Total new and used vehicle sales
|
|
2,418,473
|
|
|
2,558,106
|
|
|
7,286,939
|
|
|
6,894,497
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Vehicle parts sales
|
|
83,773
|
|
|
81,273
|
|
|
254,326
|
|
|
234,369
|
|
||||
Maintenance and repair sales
|
|
270,728
|
|
|
261,920
|
|
|
807,819
|
|
|
760,153
|
|
||||
Total parts and service sales
|
|
354,501
|
|
|
343,193
|
|
|
1,062,145
|
|
|
994,522
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Finance, insurance and other, net
|
|
116,084
|
|
|
110,993
|
|
|
343,462
|
|
|
314,297
|
|
||||
Total revenues
|
|
$
|
2,889,058
|
|
|
$
|
3,012,292
|
|
|
$
|
8,692,546
|
|
|
$
|
8,203,316
|
|
|
|
Three Months Ended September 30, 2018
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||||||||||||
|
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
|
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
||||||||||||||||
|
|
(In thousands)
|
|
|
(In thousands)
|
||||||||||||||||||||||||||||
REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
New vehicle retail sales
|
|
$
|
1,196,551
|
|
|
$
|
278,046
|
|
|
$
|
64,901
|
|
|
$
|
1,539,498
|
|
|
|
$
|
3,433,386
|
|
|
$
|
971,085
|
|
|
$
|
204,187
|
|
|
$
|
4,608,658
|
|
Used vehicle retail sales
|
|
572,011
|
|
|
200,058
|
|
|
20,336
|
|
|
792,405
|
|
|
|
1,727,848
|
|
|
600,715
|
|
|
66,265
|
|
|
2,394,828
|
|
||||||||
Used vehicle wholesale sales
|
|
40,724
|
|
|
41,696
|
|
|
4,150
|
|
|
86,570
|
|
|
|
137,507
|
|
|
134,408
|
|
|
11,538
|
|
|
283,453
|
|
||||||||
Total new and used vehicle sales
|
|
1,809,286
|
|
|
519,800
|
|
|
89,387
|
|
|
2,418,473
|
|
|
|
5,298,741
|
|
|
1,706,208
|
|
|
281,990
|
|
|
7,286,939
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Vehicle parts sales
|
|
72,935
|
|
|
9,546
|
|
|
1,292
|
|
|
83,773
|
|
|
|
220,964
|
|
|
29,537
|
|
|
3,825
|
|
|
254,326
|
|
||||||||
Maintenance and repair sales
|
|
216,399
|
|
|
44,271
|
|
|
10,058
|
|
|
270,728
|
|
|
|
641,773
|
|
|
135,417
|
|
|
30,629
|
|
|
807,819
|
|
||||||||
Total parts and service sales
|
|
289,334
|
|
|
53,817
|
|
|
11,350
|
|
|
354,501
|
|
|
|
862,737
|
|
|
164,954
|
|
|
34,454
|
|
|
1,062,145
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Finance, insurance and other, net
|
|
101,610
|
|
|
12,319
|
|
|
2,155
|
|
|
116,084
|
|
|
|
295,239
|
|
|
42,199
|
|
|
6,024
|
|
|
343,462
|
|
||||||||
Total revenues
|
|
$
|
2,200,230
|
|
|
$
|
585,936
|
|
|
$
|
102,892
|
|
|
$
|
2,889,058
|
|
|
|
$
|
6,456,717
|
|
|
$
|
1,913,361
|
|
|
$
|
322,468
|
|
|
$
|
8,692,546
|
|
|
|
Three Months Ended September 30, 2017
(1)
|
|
|
Nine Months Ended September 30, 2017
(1)
|
||||||||||||||||||||||||||||
|
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
|
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
||||||||||||||||
|
|
(In thousands)
|
|
|
(In thousands)
|
||||||||||||||||||||||||||||
REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
New vehicle retail sales
|
|
$
|
1,296,267
|
|
|
$
|
334,772
|
|
|
$
|
79,202
|
|
|
$
|
1,710,241
|
|
|
|
$
|
3,458,287
|
|
|
$
|
824,827
|
|
|
$
|
213,108
|
|
|
$
|
4,496,222
|
|
Used vehicle retail sales
|
|
562,031
|
|
|
158,076
|
|
|
22,931
|
|
|
743,038
|
|
|
|
1,620,171
|
|
|
401,851
|
|
|
67,892
|
|
|
2,089,914
|
|
||||||||
Used vehicle wholesale sales
|
|
63,363
|
|
|
38,647
|
|
|
2,817
|
|
|
104,827
|
|
|
|
200,384
|
|
|
99,604
|
|
|
8,373
|
|
|
308,361
|
|
||||||||
Total new and used vehicle sales
|
|
1,921,661
|
|
|
531,495
|
|
|
104,950
|
|
|
2,558,106
|
|
|
|
5,278,842
|
|
|
1,326,282
|
|
|
289,373
|
|
|
6,894,497
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Vehicle parts sales
|
|
71,667
|
|
|
8,190
|
|
|
1,416
|
|
|
81,273
|
|
|
|
209,276
|
|
|
20,648
|
|
|
4,445
|
|
|
234,369
|
|
||||||||
Maintenance and repair sales
|
|
212,248
|
|
|
38,593
|
|
|
11,079
|
|
|
261,920
|
|
|
|
628,496
|
|
|
99,966
|
|
|
31,691
|
|
|
760,153
|
|
||||||||
Total parts and service sales
|
|
283,915
|
|
|
46,783
|
|
|
12,495
|
|
|
343,193
|
|
|
|
837,772
|
|
|
120,614
|
|
|
36,136
|
|
|
994,522
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Finance, insurance and other, net
|
|
96,383
|
|
|
12,448
|
|
|
2,162
|
|
|
110,993
|
|
|
|
276,754
|
|
|
31,260
|
|
|
6,283
|
|
|
314,297
|
|
||||||||
Total revenues
|
|
$
|
2,301,959
|
|
|
$
|
590,726
|
|
|
$
|
119,607
|
|
|
$
|
3,012,292
|
|
|
|
$
|
6,393,368
|
|
|
$
|
1,478,156
|
|
|
$
|
331,792
|
|
|
$
|
8,203,316
|
|
|
|
As of September 30, 2018
|
|
As of December 31, 2017
|
||||
|
|
(In thousands)
|
||||||
Assets from interest rate risk management activities:
|
|
|
|
|
||||
Other long-term assets
|
|
$
|
21,659
|
|
|
$
|
9,501
|
|
Total
|
|
$
|
21,659
|
|
|
$
|
9,501
|
|
|
|
|
|
|
||||
Liabilities from interest rate risk management activities:
|
|
|
|
|
||||
Current
|
|
$
|
311
|
|
|
$
|
1,996
|
|
Long-term
|
|
444
|
|
|
8,583
|
|
||
Total
|
|
$
|
755
|
|
|
$
|
10,579
|
|
|
|
Amount of Unrealized Income (Loss), Net of Tax, Recognized in Other Comprehensive (Loss) Income
|
||||||
|
|
Nine Months Ended September 30,
|
||||||
Derivatives in Cash Flow Hedging Relationship
|
|
2018
|
|
2017
|
||||
|
|
(In thousands)
|
||||||
Interest rate derivative instruments
|
|
$
|
13,985
|
|
|
$
|
(2,437
|
)
|
|
|
|
|
|
||||
|
|
Amount of Loss Reclassified from Other Comprehensive (Loss) Income into Statements of Operations
|
||||||
Location of Loss Reclassified from Other Comprehensive (Loss) Income into Statements of Operations
|
|
Nine Months Ended September 30,
|
||||||
|
2018
|
|
2017
|
|||||
|
|
(In thousands)
|
||||||
Floorplan interest expense
|
|
$
|
(4,021
|
)
|
|
$
|
(7,995
|
)
|
Other interest expense, net
|
|
(477
|
)
|
|
(1,554
|
)
|
|
|
Awards
|
|
Weighted Average
Grant Date
Fair Value
|
|||
Nonvested at December 31, 2017
|
|
702,778
|
|
|
$
|
68.23
|
|
Granted
|
|
229,421
|
|
|
75.33
|
|
|
Vested
|
|
(220,254
|
)
|
|
63.92
|
|
|
Forfeited
|
|
(30,065
|
)
|
|
69.76
|
|
|
Nonvested at September 30, 2018
|
|
681,880
|
|
|
$
|
71.93
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
(In thousands, except per share amounts)
|
||||||||||||||
Weighted average basic common shares outstanding
|
|
19,253
|
|
|
20,222
|
|
|
19,859
|
|
|
20,475
|
|
||||
Dilutive effect of employee stock purchases, net of assumed repurchase of treasury stock
|
|
8
|
|
|
3
|
|
|
9
|
|
|
5
|
|
||||
Weighted average dilutive common shares outstanding
|
|
19,261
|
|
|
20,225
|
|
|
19,868
|
|
|
20,480
|
|
||||
Basic:
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
|
$
|
34,778
|
|
|
$
|
29,881
|
|
|
$
|
127,054
|
|
|
$
|
102,953
|
|
Less: Earnings allocated to participating securities
|
|
1,182
|
|
|
1,024
|
|
|
4,308
|
|
|
3,660
|
|
||||
Net income available to basic common shares
|
|
$
|
33,596
|
|
|
$
|
28,857
|
|
|
$
|
122,746
|
|
|
$
|
99,293
|
|
Basic earnings per common share
|
|
$
|
1.74
|
|
|
$
|
1.43
|
|
|
$
|
6.18
|
|
|
$
|
4.85
|
|
Diluted:
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
|
$
|
34,778
|
|
|
$
|
29,881
|
|
|
$
|
127,054
|
|
|
$
|
102,953
|
|
Less: Earnings allocated to participating securities
|
|
1,181
|
|
|
1,023
|
|
|
4,306
|
|
|
3,659
|
|
||||
Net income available to diluted common shares
|
|
$
|
33,597
|
|
|
$
|
28,858
|
|
|
$
|
122,748
|
|
|
$
|
99,294
|
|
Diluted earnings per common share
|
|
$
|
1.74
|
|
|
$
|
1.43
|
|
|
$
|
6.18
|
|
|
$
|
4.85
|
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||
|
|
(In thousands)
|
||||||
Amounts due from manufacturers
|
|
$
|
89,338
|
|
|
$
|
109,599
|
|
Parts and service receivables
(1)
|
|
52,118
|
|
|
39,343
|
|
||
Finance and insurance receivables
|
|
22,169
|
|
|
25,293
|
|
||
Other
|
|
8,826
|
|
|
17,514
|
|
||
Total accounts and notes receivable
|
|
172,451
|
|
|
191,749
|
|
||
Less allowance for doubtful accounts
|
|
3,133
|
|
|
3,138
|
|
||
Accounts and notes receivable, net
(1)
|
|
$
|
169,318
|
|
|
$
|
188,611
|
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||
|
|
(In thousands)
|
||||||
New vehicles
|
|
$
|
1,170,844
|
|
|
$
|
1,194,632
|
|
Used vehicles
|
|
359,997
|
|
|
350,760
|
|
||
Rental vehicles
|
|
132,113
|
|
|
144,213
|
|
||
Parts, accessories and other
(1)
|
|
80,133
|
|
|
82,755
|
|
||
Total inventories
|
|
1,743,087
|
|
|
1,772,360
|
|
||
Less lower of cost or net realizable value allowance
|
|
9,331
|
|
|
9,067
|
|
||
Inventories, net
(1)
|
|
$
|
1,733,756
|
|
|
$
|
1,763,293
|
|
|
|
Estimated Useful Lives in Years
|
|
September 30, 2018
|
|
December 31, 2017
|
||||
|
|
|
|
(In thousands)
|
||||||
Land
|
|
—
|
|
$
|
489,401
|
|
|
$
|
482,600
|
|
Buildings
|
|
25 to 50
|
|
717,354
|
|
|
700,257
|
|
||
Leasehold improvements
|
|
varies
|
|
189,059
|
|
|
172,071
|
|
||
Machinery and equipment
|
|
7 to 20
|
|
123,388
|
|
|
117,781
|
|
||
Furniture and fixtures
|
|
3 to 10
|
|
109,031
|
|
|
100,881
|
|
||
Company vehicles
|
|
3 to 5
|
|
12,488
|
|
|
11,933
|
|
||
Construction in progress
|
|
—
|
|
46,196
|
|
|
41,824
|
|
||
Total
|
|
|
|
1,686,917
|
|
|
1,627,347
|
|
||
Less accumulated depreciation
|
|
|
|
335,988
|
|
|
308,388
|
|
||
Property and equipment, net
|
|
|
|
$
|
1,350,929
|
|
|
$
|
1,318,959
|
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||
|
|
(In thousands)
|
||||||
5.00% senior notes (aggregate principal of $550,000 at September 30, 2018 and December 31, 2017)
|
|
$
|
543,306
|
|
|
$
|
542,063
|
|
5.25% senior notes (aggregate principal of $300,000 at September 30, 2018 and December 31, 2017)
|
|
296,587
|
|
|
296,151
|
|
||
Acquisition line
|
|
32,584
|
|
|
26,988
|
|
||
Real estate related and other long-term debt
|
|
455,190
|
|
|
440,845
|
|
||
Capital lease obligations related to real estate, maturing in varying amounts through December 2037, with a weighted average interest rate of 10.4% at September 30, 2018 and December 31, 2017
|
|
51,418
|
|
|
51,665
|
|
||
|
|
1,379,085
|
|
|
1,357,712
|
|
||
Less current maturities of long-term debt
|
|
74,958
|
|
|
39,528
|
|
||
|
|
$
|
1,304,127
|
|
|
$
|
1,318,184
|
|
|
|
As of September 30, 2018
|
|
As of December 31, 2017
|
||||
|
|
(In thousands)
|
||||||
Assets:
|
|
|
|
|
||||
Investments
|
|
$
|
2,364
|
|
|
$
|
844
|
|
Demand obligations
|
|
13
|
|
|
13
|
|
||
Interest rate derivative financial instruments
|
|
21,659
|
|
|
9,501
|
|
||
Total
|
|
$
|
24,036
|
|
|
$
|
10,358
|
|
Liabilities:
|
|
|
|
|
||||
Interest rate derivative financial instruments
|
|
$
|
755
|
|
|
$
|
10,579
|
|
Total
|
|
$
|
755
|
|
|
$
|
10,579
|
|
|
Intangible Franchise Rights
|
|
||||||||||||||
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
|
||||||||
|
(In thousands)
|
|
||||||||||||||
BALANCE, December 31, 2017
|
$
|
255,981
|
|
|
$
|
29,483
|
|
|
$
|
168
|
|
|
$
|
285,632
|
|
|
Additions through acquisitions
|
11,540
|
|
|
8,423
|
|
|
—
|
|
|
19,963
|
|
|
||||
Disposals
|
(4,872
|
)
|
|
—
|
|
|
—
|
|
|
(4,872
|
)
|
|
||||
Impairments
|
(22,909
|
)
|
|
—
|
|
|
—
|
|
|
(22,909
|
)
|
|
||||
Currency translation
|
—
|
|
|
(1,498
|
)
|
|
(31
|
)
|
|
(1,529
|
)
|
|
||||
Balance, September 30, 2018
|
$
|
239,740
|
|
|
$
|
36,408
|
|
|
$
|
137
|
|
|
$
|
276,285
|
|
|
|
Goodwill
|
|
||||||||||||||
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
|
||||||||
|
(In thousands)
|
|
||||||||||||||
BALANCE, December 31, 2017
|
$
|
835,267
|
|
|
$
|
65,034
|
|
|
$
|
12,733
|
|
|
$
|
913,034
|
|
(1)
|
Additions through acquisitions
|
39,765
|
|
|
28,476
|
|
|
4,284
|
|
|
72,525
|
|
|
||||
Purchase price allocation adjustments
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
||||
Disposals
|
(9,973
|
)
|
|
—
|
|
|
—
|
|
|
(9,973
|
)
|
|
||||
Currency translation
|
—
|
|
|
(3,882
|
)
|
|
(2,935
|
)
|
|
(6,817
|
)
|
|
||||
Balance, September 30, 2018
|
$
|
865,061
|
|
|
$
|
89,628
|
|
|
$
|
14,082
|
|
|
$
|
968,771
|
|
(1)
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||
|
|
Accumulated foreign currency translation loss
|
|
Accumulated (loss) gain on interest rate swaps
|
|
Total
|
||||||
|
|
(In thousands)
|
||||||||||
Balance, December 31, 2017
|
|
$
|
(122,552
|
)
|
|
$
|
(674
|
)
|
|
$
|
(123,226
|
)
|
Other comprehensive (loss) income before reclassifications:
|
|
|
|
|
|
|
||||||
Pre-tax
|
|
(22,223
|
)
|
|
18,401
|
|
|
(3,822
|
)
|
|||
Tax effect
|
|
—
|
|
|
(4,416
|
)
|
|
(4,416
|
)
|
|||
Amounts reclassified from accumulated other comprehensive loss to:
|
|
|
|
|
|
|
|
|||||
Floorplan interest expense (pre-tax)
|
|
—
|
|
|
4,021
|
|
|
4,021
|
|
|||
Other interest expense (pre-tax)
|
|
—
|
|
|
477
|
|
|
477
|
|
|||
Realized gain on swap termination (pre-tax)
|
|
—
|
|
|
(918
|
)
|
|
(918
|
)
|
|||
Tax effect
|
|
—
|
|
|
(860
|
)
|
|
(860
|
)
|
|||
Net current period other comprehensive (loss) income
|
|
(22,223
|
)
|
|
16,705
|
|
|
(5,518
|
)
|
|||
Tax effects reclassified from accumulated other comprehensive loss
|
|
$
|
—
|
|
|
$
|
(150
|
)
|
|
$
|
(150
|
)
|
Balance, September 30, 2018
|
|
$
|
(144,775
|
)
|
|
$
|
15,881
|
|
|
$
|
(128,894
|
)
|
|
|
Nine Months Ended September 30, 2017
|
||||||||||
|
|
Accumulated foreign currency translation loss
|
|
Accumulated loss on interest rate swaps
|
|
Total
|
||||||
|
|
(In thousands)
|
||||||||||
Balance, December 31, 2016
|
|
$
|
(137,613
|
)
|
|
$
|
(9,331
|
)
|
|
$
|
(146,944
|
)
|
Other comprehensive income (loss) before reclassifications:
|
|
|
|
|
|
|
||||||
Pre-tax
|
|
16,998
|
|
|
(3,899
|
)
|
|
13,099
|
|
|||
Tax effect
|
|
—
|
|
|
1,462
|
|
|
1,462
|
|
|||
Amounts reclassified from accumulated other comprehensive loss to:
|
|
|
|
|
|
|
||||||
Floorplan interest expense (pre-tax)
|
|
—
|
|
|
7,995
|
|
|
7,995
|
|
|||
Other interest expense (pre-tax)
|
|
—
|
|
|
1,554
|
|
|
1,554
|
|
|||
Tax effect
|
|
—
|
|
|
(3,581
|
)
|
|
(3,581
|
)
|
|||
Net current period other comprehensive income
|
|
16,998
|
|
|
3,531
|
|
|
20,529
|
|
|||
Balance, September 30, 2017
|
|
$
|
(120,615
|
)
|
|
$
|
(5,800
|
)
|
|
$
|
(126,415
|
)
|
|
Three Months Ended September 30, 2018
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||||||||||||
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
|
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
||||||||||||||||
|
(In thousands)
|
|
|
(In thousands)
|
||||||||||||||||||||||||||||
Total revenues
|
$
|
2,200,230
|
|
|
$
|
585,936
|
|
|
$
|
102,892
|
|
|
$
|
2,889,058
|
|
|
|
$
|
6,456,717
|
|
|
$
|
1,913,361
|
|
|
$
|
322,468
|
|
|
$
|
8,692,546
|
|
Income (loss) before income taxes
|
43,415
|
|
|
2,663
|
|
|
(1,713
|
)
|
|
44,365
|
|
|
|
152,867
|
|
|
14,416
|
|
|
(1,563
|
)
|
|
165,720
|
|
||||||||
Provision for income taxes
|
(9,061
|
)
|
|
(366
|
)
|
|
(160
|
)
|
|
(9,587
|
)
|
|
|
(35,821
|
)
|
|
(2,131
|
)
|
|
(714
|
)
|
|
(38,666
|
)
|
||||||||
Net income (loss)
(1)
|
34,354
|
|
|
2,297
|
|
|
(1,873
|
)
|
|
34,778
|
|
|
|
117,046
|
|
|
12,285
|
|
|
(2,277
|
)
|
|
127,054
|
|
|
Three Months Ended September 30, 2017
|
|
|
Nine Months Ended September 30, 2017
|
||||||||||||||||||||||||||||
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
|
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
||||||||||||||||
|
(In thousands)
|
|
|
(In thousands)
|
||||||||||||||||||||||||||||
Total revenues
(2)
|
$
|
2,301,959
|
|
|
$
|
590,726
|
|
|
$
|
119,607
|
|
|
$
|
3,012,292
|
|
|
|
$
|
6,393,368
|
|
|
$
|
1,478,156
|
|
|
$
|
331,792
|
|
|
$
|
8,203,316
|
|
Income before income taxes
|
41,133
|
|
|
5,435
|
|
|
575
|
|
|
47,143
|
|
|
|
142,808
|
|
|
15,745
|
|
|
1,476
|
|
|
160,029
|
|
||||||||
(Provision) benefit for income taxes
|
(16,258
|
)
|
|
(1,105
|
)
|
|
101
|
|
|
(17,262
|
)
|
|
|
(54,301
|
)
|
|
(2,781
|
)
|
|
6
|
|
|
(57,076
|
)
|
||||||||
Net income
(3)
|
24,875
|
|
|
4,330
|
|
|
676
|
|
|
29,881
|
|
|
|
88,507
|
|
|
12,964
|
|
|
1,482
|
|
|
102,953
|
|
|
As of September 30, 2018
|
||||||||||||||
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
Total assets
|
$
|
3,977,995
|
|
|
$
|
779,293
|
|
|
$
|
123,578
|
|
|
$
|
4,880,866
|
|
|
As of December 31, 2017
|
||||||||||||||
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
Total assets
|
$
|
4,087,039
|
|
|
$
|
654,154
|
|
|
$
|
129,872
|
|
|
$
|
4,871,065
|
|
|
Group 1 Automotive, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Elimination
|
|
Total Company
|
||||||||||
|
(Unaudited, in thousands)
|
||||||||||||||||||
REVENUES
|
$
|
—
|
|
|
$
|
2,200,230
|
|
|
$
|
688,828
|
|
|
$
|
—
|
|
|
$
|
2,889,058
|
|
COST OF SALES
|
—
|
|
|
1,847,757
|
|
|
606,200
|
|
|
—
|
|
|
2,453,957
|
|
|||||
GROSS PROFIT
|
—
|
|
|
352,473
|
|
|
82,628
|
|
|
—
|
|
|
435,101
|
|
|||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
|
323
|
|
|
240,167
|
|
|
76,281
|
|
|
—
|
|
|
316,771
|
|
|||||
DEPRECIATION AND AMORTIZATION EXPENSE
|
—
|
|
|
13,510
|
|
|
3,471
|
|
|
—
|
|
|
16,981
|
|
|||||
ASSET IMPAIRMENTS
|
—
|
|
|
23,159
|
|
|
—
|
|
|
—
|
|
|
23,159
|
|
|||||
(LOSS) INCOME FROM OPERATIONS
|
(323
|
)
|
|
75,637
|
|
|
2,876
|
|
|
—
|
|
|
78,190
|
|
|||||
OTHER EXPENSE:
|
|
|
|
|
|
|
|
|
|
||||||||||
Floorplan interest expense
|
—
|
|
|
(12,903
|
)
|
|
(1,782
|
)
|
|
—
|
|
|
(14,685
|
)
|
|||||
Other interest expense, net
|
—
|
|
|
(17,272
|
)
|
|
(1,868
|
)
|
|
—
|
|
|
(19,140
|
)
|
|||||
(LOSS) INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF SUBSIDIARIES
|
(323
|
)
|
|
45,462
|
|
|
(774
|
)
|
|
—
|
|
|
44,365
|
|
|||||
BENEFIT (PROVISION) FOR INCOME TAXES
|
58
|
|
|
(9,120
|
)
|
|
(525
|
)
|
|
—
|
|
|
(9,587
|
)
|
|||||
EQUITY IN EARNINGS OF SUBSIDIARIES
|
35,042
|
|
|
—
|
|
|
—
|
|
|
(35,042
|
)
|
|
—
|
|
|||||
NET INCOME (LOSS)
|
$
|
34,777
|
|
|
$
|
36,342
|
|
|
$
|
(1,299
|
)
|
|
$
|
(35,042
|
)
|
|
$
|
34,778
|
|
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES
|
—
|
|
|
3,522
|
|
|
(5,908
|
)
|
|
—
|
|
|
(2,386
|
)
|
|||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO PARENT
|
$
|
34,777
|
|
|
$
|
39,864
|
|
|
$
|
(7,207
|
)
|
|
$
|
(35,042
|
)
|
|
$
|
32,392
|
|
|
Group 1 Automotive, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Elimination
|
|
Total Company
|
||||||||||
|
(Unaudited, in thousands)
|
||||||||||||||||||
REVENUES
|
$
|
—
|
|
|
$
|
6,456,718
|
|
|
$
|
2,235,828
|
|
|
$
|
—
|
|
|
$
|
8,692,546
|
|
COST OF SALES
|
—
|
|
|
5,417,890
|
|
|
1,981,629
|
|
|
—
|
|
|
7,399,519
|
|
|||||
GROSS PROFIT
|
—
|
|
|
1,038,828
|
|
|
254,199
|
|
|
—
|
|
|
1,293,027
|
|
|||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
|
2,726
|
|
|
721,255
|
|
|
225,229
|
|
|
—
|
|
|
949,210
|
|
|||||
DEPRECIATION AND AMORTIZATION EXPENSE
|
—
|
|
|
39,431
|
|
|
10,530
|
|
|
—
|
|
|
49,961
|
|
|||||
ASSET IMPAIRMENTS
|
—
|
|
|
27,427
|
|
|
—
|
|
|
—
|
|
|
27,427
|
|
|||||
(LOSS) INCOME FROM OPERATIONS
|
(2,726
|
)
|
|
250,715
|
|
|
18,440
|
|
|
—
|
|
|
266,429
|
|
|||||
OTHER EXPENSE:
|
|
|
|
|
|
|
|
|
|
||||||||||
Floorplan interest expense
|
—
|
|
|
(38,050
|
)
|
|
(5,285
|
)
|
|
—
|
|
|
(43,335
|
)
|
|||||
Other interest expense, net
|
—
|
|
|
(51,620
|
)
|
|
(5,754
|
)
|
|
—
|
|
|
(57,374
|
)
|
|||||
(LOSS) INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF SUBSIDIARIES
|
(2,726
|
)
|
|
161,045
|
|
|
7,401
|
|
|
—
|
|
|
165,720
|
|
|||||
BENEFIT (PROVISION) FOR INCOME TAXES
|
635
|
|
|
(36,457
|
)
|
|
(2,844
|
)
|
|
—
|
|
|
(38,666
|
)
|
|||||
EQUITY IN EARNINGS OF SUBSIDIARIES
|
129,145
|
|
|
—
|
|
|
—
|
|
|
(129,145
|
)
|
|
—
|
|
|||||
NET INCOME (LOSS)
|
$
|
127,054
|
|
|
$
|
124,588
|
|
|
$
|
4,557
|
|
|
$
|
(129,145
|
)
|
|
$
|
127,054
|
|
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES
|
—
|
|
|
16,705
|
|
|
(22,223
|
)
|
|
—
|
|
|
(5,518
|
)
|
|||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO PARENT
|
$
|
127,054
|
|
|
$
|
141,293
|
|
|
$
|
(17,666
|
)
|
|
$
|
(129,145
|
)
|
|
$
|
121,536
|
|
|
Group 1 Automotive, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Elimination
|
|
Total Company
|
||||||||||
|
(Unaudited, in thousands)
|
||||||||||||||||||
REVENUES
|
$
|
—
|
|
|
$
|
2,301,958
|
|
|
$
|
710,334
|
|
|
$
|
—
|
|
|
$
|
3,012,292
|
|
COST OF SALES
|
—
|
|
|
1,948,390
|
|
|
632,482
|
|
|
—
|
|
|
2,580,872
|
|
|||||
GROSS PROFIT
|
—
|
|
|
353,568
|
|
|
77,852
|
|
|
—
|
|
|
431,420
|
|
|||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
|
433
|
|
|
259,119
|
|
|
68,775
|
|
|
—
|
|
|
328,327
|
|
|||||
DEPRECIATION AND AMORTIZATION EXPENSE
|
—
|
|
|
12,380
|
|
|
2,679
|
|
|
—
|
|
|
15,059
|
|
|||||
ASSET IMPAIRMENTS
|
—
|
|
|
9,526
|
|
|
—
|
|
|
—
|
|
|
9,526
|
|
|||||
INCOME (LOSS) FROM OPERATIONS
|
(433
|
)
|
|
72,543
|
|
|
6,398
|
|
|
—
|
|
|
78,508
|
|
|||||
OTHER EXPENSE:
|
|
|
|
|
|
|
|
|
|
||||||||||
Floorplan interest expense
|
—
|
|
|
(12,014
|
)
|
|
(1,477
|
)
|
|
—
|
|
|
(13,491
|
)
|
|||||
Other interest expense, net
|
—
|
|
|
(16,726
|
)
|
|
(1,148
|
)
|
|
—
|
|
|
(17,874
|
)
|
|||||
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF SUBSIDIARIES
|
(433
|
)
|
|
43,803
|
|
|
3,773
|
|
|
—
|
|
|
47,143
|
|
|||||
BENEFIT (PROVISION) FOR INCOME TAXES
|
163
|
|
|
(16,423
|
)
|
|
(1,002
|
)
|
|
—
|
|
|
(17,262
|
)
|
|||||
EQUITY IN EARNINGS OF SUBSIDIARIES
|
30,151
|
|
|
—
|
|
|
—
|
|
|
(30,151
|
)
|
|
—
|
|
|||||
NET INCOME (LOSS)
|
$
|
29,881
|
|
|
$
|
27,380
|
|
|
$
|
2,771
|
|
|
$
|
(30,151
|
)
|
|
$
|
29,881
|
|
OTHER COMPREHENSIVE INCOME, NET OF TAXES
|
—
|
|
|
1,454
|
|
|
8,399
|
|
|
—
|
|
|
9,853
|
|
|||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO PARENT
|
$
|
29,881
|
|
|
$
|
28,834
|
|
|
$
|
11,170
|
|
|
$
|
(30,151
|
)
|
|
$
|
39,734
|
|
|
Group 1 Automotive, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Elimination
|
|
Total Company
|
||||||||||
|
(Unaudited, in thousands)
|
||||||||||||||||||
REVENUES
|
$
|
—
|
|
|
$
|
6,393,367
|
|
|
$
|
1,809,949
|
|
|
$
|
—
|
|
|
$
|
8,203,316
|
|
COST OF SALES
|
—
|
|
|
5,378,731
|
|
|
1,604,751
|
|
|
—
|
|
|
6,983,482
|
|
|||||
GROSS PROFIT
|
—
|
|
|
1,014,636
|
|
|
205,198
|
|
|
—
|
|
|
1,219,834
|
|
|||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
|
2,932
|
|
|
733,744
|
|
|
179,998
|
|
|
—
|
|
|
916,674
|
|
|||||
DEPRECIATION AND AMORTIZATION EXPENSE
|
—
|
|
|
35,873
|
|
|
6,885
|
|
|
—
|
|
|
42,758
|
|
|||||
ASSET IMPAIRMENTS
|
—
|
|
|
9,526
|
|
|
—
|
|
|
—
|
|
|
9,526
|
|
|||||
(LOSS) INCOME FROM OPERATIONS
|
(2,932
|
)
|
|
235,493
|
|
|
18,315
|
|
|
—
|
|
|
250,876
|
|
|||||
OTHER EXPENSE:
|
|
|
|
|
|
|
|
|
|
||||||||||
Floorplan interest expense
|
—
|
|
|
(34,954
|
)
|
|
(3,705
|
)
|
|
—
|
|
|
(38,659
|
)
|
|||||
Other interest expense, net
|
—
|
|
|
(49,568
|
)
|
|
(2,620
|
)
|
|
—
|
|
|
(52,188
|
)
|
|||||
(LOSS) INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF SUBSIDIARIES
|
(2,932
|
)
|
|
150,971
|
|
|
11,990
|
|
|
—
|
|
|
160,029
|
|
|||||
BENEFIT (PROVISION) FOR INCOME TAXES
|
1,100
|
|
|
(55,402
|
)
|
|
(2,774
|
)
|
|
—
|
|
|
(57,076
|
)
|
|||||
EQUITY IN EARNINGS OF SUBSIDIARIES
|
104,785
|
|
|
—
|
|
|
—
|
|
|
(104,785
|
)
|
|
—
|
|
|||||
NET INCOME (LOSS)
|
$
|
102,953
|
|
|
$
|
95,569
|
|
|
$
|
9,216
|
|
|
$
|
(104,785
|
)
|
|
$
|
102,953
|
|
OTHER COMPREHENSIVE INCOME, NET OF TAXES
|
—
|
|
|
3,531
|
|
|
16,998
|
|
|
—
|
|
|
20,529
|
|
|||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO PARENT
|
$
|
102,953
|
|
|
$
|
99,100
|
|
|
$
|
26,214
|
|
|
$
|
(104,785
|
)
|
|
$
|
123,482
|
|
|
Group 1 Automotive, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Total Company
|
||||||||
|
(Unaudited, in thousands)
|
||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
||||||||
Net cash provided by operating activities
|
$
|
127,073
|
|
|
$
|
192,976
|
|
|
$
|
37,366
|
|
|
$
|
357,415
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
||||||||
Cash paid in acquisitions, net of cash received
|
—
|
|
|
(91,890
|
)
|
|
(43,452
|
)
|
|
(135,342
|
)
|
||||
Proceeds from disposition of franchises, property and equipment
|
—
|
|
|
101,364
|
|
|
6,340
|
|
|
107,704
|
|
||||
Purchases of property and equipment, including real estate
|
—
|
|
|
(79,490
|
)
|
|
(38,725
|
)
|
|
(118,215
|
)
|
||||
Deposits for real estate and dealership acquisitions
|
381
|
|
|
—
|
|
|
—
|
|
|
381
|
|
||||
Net cash provided by (used in) investing activities
|
381
|
|
|
(70,016
|
)
|
|
(75,837
|
)
|
|
(145,472
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
||||||||
Borrowings on credit facility - floorplan line and other
|
—
|
|
|
5,036,149
|
|
|
70,661
|
|
|
5,106,810
|
|
||||
Repayments on credit facility - floorplan line and other
|
—
|
|
|
(5,124,860
|
)
|
|
(60,365
|
)
|
|
(5,185,225
|
)
|
||||
Borrowings on credit facility - acquisition line
|
98,596
|
|
|
—
|
|
|
—
|
|
|
98,596
|
|
||||
Repayments on credit facility - acquisition line
|
(91,450
|
)
|
|
—
|
|
|
—
|
|
|
(91,450
|
)
|
||||
Borrowings on other debt
|
—
|
|
|
70,661
|
|
|
52,637
|
|
|
123,298
|
|
||||
Principal payments on other debt
|
(24,741
|
)
|
|
(36,198
|
)
|
|
(44,612
|
)
|
|
(105,551
|
)
|
||||
Borrowings on debt related to real estate
|
—
|
|
|
42,657
|
|
|
12,055
|
|
|
54,712
|
|
||||
Principal payments on debt related to real estate
|
—
|
|
|
(71,762
|
)
|
|
(11,480
|
)
|
|
(83,242
|
)
|
||||
Employee stock purchase plan purchases, net of employee tax withholdings
|
1,529
|
|
|
—
|
|
|
—
|
|
|
1,529
|
|
||||
Repurchases of common stock, amounts based on settlement date
|
(108,623
|
)
|
|
—
|
|
|
—
|
|
|
(108,623
|
)
|
||||
Proceeds from termination of mortgage swap
|
—
|
|
|
918
|
|
|
—
|
|
|
918
|
|
||||
Dividends paid
|
(16,014
|
)
|
|
—
|
|
|
—
|
|
|
(16,014
|
)
|
||||
Borrowings (repayments) with subsidiaries
|
208,665
|
|
|
(219,177
|
)
|
|
10,512
|
|
|
—
|
|
||||
Investment in subsidiaries
|
(195,416
|
)
|
|
177,618
|
|
|
17,798
|
|
|
—
|
|
||||
Net cash (used in) provided by financing activities
|
(127,454
|
)
|
|
(123,994
|
)
|
|
47,206
|
|
|
(204,242
|
)
|
||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH
|
—
|
|
|
—
|
|
|
(2,941
|
)
|
|
(2,941
|
)
|
||||
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH
|
—
|
|
|
(1,034
|
)
|
|
5,794
|
|
|
4,760
|
|
||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period
|
—
|
|
|
10,096
|
|
|
19,535
|
|
|
29,631
|
|
||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period
|
$
|
—
|
|
|
$
|
9,062
|
|
|
$
|
25,329
|
|
|
$
|
34,391
|
|
|
Group 1 Automotive, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Total Company
|
||||||||
|
(Unaudited, in thousands)
|
||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
||||||||
Net cash provided by operating activities
|
$
|
102,951
|
|
|
$
|
188,979
|
|
|
$
|
15,304
|
|
|
$
|
307,234
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
||||||||
Cash paid in acquisitions, net of cash received
|
—
|
|
|
(62,475
|
)
|
|
(46,607
|
)
|
|
(109,082
|
)
|
||||
Proceeds from disposition of franchises, property and equipment
|
—
|
|
|
2,807
|
|
|
2,326
|
|
|
5,133
|
|
||||
Purchases of property and equipment, including real estate
|
—
|
|
|
(131,622
|
)
|
|
(12,688
|
)
|
|
(144,310
|
)
|
||||
Other
|
—
|
|
|
1,526
|
|
|
—
|
|
|
1,526
|
|
||||
Net cash used in investing activities
|
—
|
|
|
(189,764
|
)
|
|
(56,969
|
)
|
|
(246,733
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
||||||||
Borrowings on credit facility - floorplan line and other
|
—
|
|
|
5,053,598
|
|
|
—
|
|
|
5,053,598
|
|
||||
Repayments on credit facility - floorplan line and other
|
—
|
|
|
(5,108,475
|
)
|
|
—
|
|
|
(5,108,475
|
)
|
||||
Borrowings on credit facility - acquisition line
|
68,085
|
|
|
—
|
|
|
—
|
|
|
68,085
|
|
||||
Repayments on credit facility - acquisition line
|
(35,576
|
)
|
|
—
|
|
|
—
|
|
|
(35,576
|
)
|
||||
Borrowings on other debt
|
25,054
|
|
|
—
|
|
|
101,262
|
|
|
126,316
|
|
||||
Principal payments on other debt
|
—
|
|
|
(787
|
)
|
|
(87,914
|
)
|
|
(88,701
|
)
|
||||
Borrowings on debt related to real estate
|
—
|
|
|
10,156
|
|
|
28,875
|
|
|
39,031
|
|
||||
Principal payments on debt related to real estate
|
—
|
|
|
(16,819
|
)
|
|
(4,450
|
)
|
|
(21,269
|
)
|
||||
Employee stock purchase plan purchases, net of employee tax withholdings
|
4,196
|
|
|
—
|
|
|
—
|
|
|
4,196
|
|
||||
Repurchases of common stock, amounts based on settlement date
|
(40,094
|
)
|
|
—
|
|
|
—
|
|
|
(40,094
|
)
|
||||
Dividends paid
|
(15,221
|
)
|
|
—
|
|
|
—
|
|
|
(15,221
|
)
|
||||
Borrowings (repayments) with subsidiaries
|
74,826
|
|
|
(110,857
|
)
|
|
36,031
|
|
|
—
|
|
||||
Investment in subsidiaries
|
(184,221
|
)
|
|
174,576
|
|
|
9,645
|
|
|
—
|
|
||||
Net cash provided by (used in) financing activities
|
(102,951
|
)
|
|
1,392
|
|
|
83,449
|
|
|
(18,110
|
)
|
||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH
|
—
|
|
|
—
|
|
|
867
|
|
|
867
|
|
||||
NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH
|
—
|
|
|
607
|
|
|
42,651
|
|
|
43,258
|
|
||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period
|
—
|
|
|
8,039
|
|
|
16,207
|
|
|
24,246
|
|
||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period
|
$
|
—
|
|
|
$
|
8,646
|
|
|
$
|
58,858
|
|
|
$
|
67,504
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Unit Sales
|
|
|
|
|
|
|
|
|
||||||||
Retail Sales
|
|
|
|
|
|
|
|
|
||||||||
New Vehicle
|
|
43,584
|
|
|
48,321
|
|
|
128,245
|
|
|
127,487
|
|
||||
Used Vehicle
|
|
37,676
|
|
|
34,349
|
|
|
111,900
|
|
|
97,918
|
|
||||
Total Retail Sales
|
|
81,260
|
|
|
82,670
|
|
|
240,145
|
|
|
225,405
|
|
||||
Wholesale Sales
|
|
12,902
|
|
|
14,967
|
|
|
41,798
|
|
|
43,571
|
|
||||
Total Vehicle Sales
|
|
94,162
|
|
|
97,637
|
|
|
281,943
|
|
|
268,976
|
|
||||
Gross Margin
|
|
|
|
|
|
|
|
|
||||||||
New Vehicle Retail Sales
|
|
5.0
|
%
|
|
5.2
|
%
|
|
5.0
|
%
|
|
5.2
|
%
|
||||
Total Used Vehicle Sales
|
|
5.7
|
%
|
|
5.5
|
%
|
|
5.5
|
%
|
|
5.7
|
%
|
||||
Parts and Service Sales
|
|
54.0
|
%
|
|
54.0
|
%
|
|
54.0
|
%
|
|
53.9
|
%
|
||||
Total Gross Margin
|
|
15.1
|
%
|
|
14.3
|
%
|
|
14.9
|
%
|
|
14.9
|
%
|
||||
Adjusted Total Gross Margin
|
|
15.1
|
%
|
|
14.5
|
%
|
|
14.9
|
%
|
|
14.9
|
%
|
||||
SG&A
(1)
as a % of Gross Profit
|
|
72.8
|
%
|
|
76.1
|
%
|
|
73.4
|
%
|
|
75.1
|
%
|
||||
Adjusted SG&A
(1)
as a % of Gross Profit
(2)
|
|
73.6
|
%
|
|
72.8
|
%
|
|
74.6
|
%
|
|
74.0
|
%
|
||||
Operating Margin
|
|
2.7%
|
|
|
2.7%
|
|
|
3.1%
|
|
|
3.1%
|
|
||||
Adjusted Operating Margin
(2)
|
|
3.4%
|
|
|
3.5%
|
|
|
3.2%
|
|
|
3.4%
|
|
||||
Pretax Margin
|
|
1.5%
|
|
|
1.6%
|
|
|
1.9%
|
|
|
2.0%
|
|
||||
Adjusted Pretax Margin
(2)
|
|
2.2%
|
|
|
2.4%
|
|
|
2.0%
|
|
|
2.3%
|
|
||||
Finance and Insurance Revenues per Retail Unit Sold
|
|
$
|
1,429
|
|
|
$
|
1,343
|
|
|
$
|
1,430
|
|
|
$
|
1,394
|
|
Adjusted Finance and Insurance Revenues per Retail Unit Sold
(2)
|
|
$
|
1,429
|
|
|
$
|
1,422
|
|
|
$
|
1,430
|
|
|
$
|
1,423
|
|
(1)
|
Selling, general and administrative expenses.
|
(2)
|
See “Non-GAAP Financial Measures” for more details.
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||
|
|
2018
|
|
% Increase/(Decrease)
|
|
Constant Currency
(1)
% Increase/(Decrease)
|
|
2017
|
|
|
2018
|
|
% Increase/(Decrease)
|
|
Constant Currency
(1)
% Increase/(Decrease)
|
|
2017
|
||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
New Vehicle Retail
|
|
$
|
1,464,434
|
|
|
(12.7)%
|
|
(11.6)%
|
|
$
|
1,676,918
|
|
|
|
$
|
4,314,357
|
|
|
(3.1)%
|
|
(3.5)%
|
|
$
|
4,453,217
|
|
Used Vehicle Retail
|
|
743,092
|
|
|
2.9%
|
|
3.7%
|
|
722,466
|
|
|
|
2,217,686
|
|
|
7.4%
|
|
6.6%
|
|
2,064,777
|
|
||||
Used Vehicle Wholesale
|
|
80,171
|
|
|
(20.2)%
|
|
(19.0)%
|
|
100,522
|
|
|
|
252,509
|
|
|
(16.8)%
|
|
(18.2)%
|
|
303,455
|
|
||||
Parts and Service
|
|
342,323
|
|
|
2.0%
|
|
2.9%
|
|
335,537
|
|
|
|
1,014,022
|
|
|
3.0%
|
|
2.7%
|
|
984,490
|
|
||||
Finance, Insurance and Other, net
|
|
111,706
|
|
|
2.6%
|
|
3.2%
|
|
108,884
|
|
|
|
327,524
|
|
|
5.4%
|
|
5.1%
|
|
310,794
|
|
||||
Total Revenues
|
|
$
|
2,741,726
|
|
|
(6.9)%
|
|
(5.9)%
|
|
$
|
2,944,327
|
|
|
|
$
|
8,126,098
|
|
|
0.1%
|
|
(0.4)%
|
|
$
|
8,116,733
|
|
Cost of Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
New Vehicle Retail
|
|
$
|
1,390,535
|
|
|
(12.6)%
|
|
(11.5)%
|
|
$
|
1,590,270
|
|
|
|
$
|
4,097,955
|
|
|
(3.0)%
|
|
(3.3)%
|
|
$
|
4,222,892
|
|
Used Vehicle Retail
|
|
696,386
|
|
|
3.0%
|
|
3.8%
|
|
676,073
|
|
|
|
2,082,861
|
|
|
8.0%
|
|
7.2%
|
|
1,928,656
|
|
||||
Used Vehicle Wholesale
|
|
80,230
|
|
|
(20.3)%
|
|
(19.1)%
|
|
100,716
|
|
|
|
250,343
|
|
|
(17.6)%
|
|
(19.0)%
|
|
303,770
|
|
||||
Parts and Service
|
|
158,178
|
|
|
2.3%
|
|
3.4%
|
|
154,575
|
|
|
|
468,268
|
|
|
3.3%
|
|
3.2%
|
|
453,294
|
|
||||
Total Cost of Sales
|
|
$
|
2,325,329
|
|
|
(7.8)%
|
|
(6.8)%
|
|
$
|
2,521,634
|
|
|
|
$
|
6,899,427
|
|
|
(0.1)%
|
|
(0.6)%
|
|
$
|
6,908,612
|
|
Gross Profit
|
|
$
|
416,397
|
|
|
(1.5)%
|
|
(0.6)%
|
|
$
|
422,693
|
|
|
|
$
|
1,226,671
|
|
|
1.5%
|
|
1.2%
|
|
$
|
1,208,121
|
|
SG&A
|
|
$
|
303,894
|
|
|
(5.0)%
|
|
(3.8)%
|
|
$
|
319,775
|
|
|
|
$
|
916,527
|
|
|
1.3%
|
|
1.0%
|
|
$
|
904,748
|
|
Adjusted SG&A
(1)
|
|
$
|
305,155
|
|
|
(1.6)%
|
|
(0.6)%
|
|
$
|
310,108
|
|
|
|
$
|
909,549
|
|
|
1.5%
|
|
1.2%
|
|
$
|
895,983
|
|
Depreciation and Amortization Expense
|
|
$
|
16,181
|
|
|
10.6%
|
|
11.3%
|
|
$
|
14,631
|
|
|
|
$
|
46,995
|
|
|
12.1%
|
|
11.6%
|
|
$
|
41,920
|
|
Floorplan Interest Expense
|
|
$
|
14,239
|
|
|
7.5%
|
|
8.0%
|
|
$
|
13,240
|
|
|
|
$
|
41,767
|
|
|
8.9%
|
|
8.5%
|
|
$
|
38,365
|
|
Gross Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
New Vehicle Retail
|
|
5.0%
|
|
|
|
|
|
5.2%
|
|
|
5.0%
|
|
|
|
|
|
5.2%
|
||||||||
Total Used Vehicle
|
|
5.7%
|
|
|
|
|
|
5.6%
|
|
|
5.5%
|
|
|
|
|
|
5.7%
|
||||||||
Parts and Service
|
|
53.8%
|
|
|
|
|
|
53.9%
|
|
|
53.8%
|
|
|
|
|
|
54.0%
|
||||||||
Total Gross Margin
|
|
15.2%
|
|
|
|
|
|
14.4%
|
|
|
15.1%
|
|
|
|
|
|
14.9%
|
||||||||
Adjusted Total Gross Margin
(1)
|
|
15.2%
|
|
|
|
|
|
14.5%
|
|
|
15.1%
|
|
|
|
|
|
15.0%
|
||||||||
Adjusted Finance, Insurance and Other, Net
(1)
|
|
$
|
111,706
|
|
|
(3.2)%
|
|
(2.7)%
|
|
$
|
115,434
|
|
|
|
$
|
327,524
|
|
|
3.2%
|
|
2.9%
|
|
$
|
317,344
|
|
Adjusted Total Revenue
(1)
|
|
$
|
2,741,726
|
|
|
(7.1)%
|
|
(6.1)%
|
|
$
|
2,950,877
|
|
|
|
$
|
8,126,098
|
|
|
—
|
|
(0.4)%
|
|
$
|
8,123,283
|
|
Adjusted Gross Profit
(1)
|
|
$
|
416,397
|
|
|
(3.0)%
|
|
(2.1)%
|
|
$
|
429,243
|
|
|
|
$
|
1,226,671
|
|
|
1.0%
|
|
0.7%
|
|
$
|
1,214,671
|
|
SG&A as a % of Gross Profit
|
|
73.0%
|
|
|
|
|
|
75.7%
|
|
|
74.7%
|
|
|
|
|
|
74.9%
|
||||||||
Adjusted SG&A as a % of Gross Profit
(1)
|
|
73.3%
|
|
|
|
|
|
72.2%
|
|
|
74.1%
|
|
|
|
|
|
73.8%
|
||||||||
Operating Margin
|
|
2.7%
|
|
|
|
|
|
2.7%
|
|
|
2.9%
|
|
|
|
|
|
3.1%
|
||||||||
Adjusted Operating Margin
(1)
|
|
3.5%
|
|
|
|
|
|
3.5%
|
|
|
3.3%
|
|
|
|
|
|
3.4%
|
||||||||
Finance and Insurance Revenues per Retail Unit Sold, net
|
|
$
|
1,455
|
|
|
8.1%
|
|
8.6%
|
|
$
|
1,346
|
|
|
|
$
|
1,462
|
|
|
5.0%
|
|
4.6%
|
|
$
|
1,393
|
|
Adjusted Finance and Insurance Revenues per Retail Unit Sold
(1)
|
|
$
|
1,455
|
|
|
2.0%
|
|
2.5%
|
|
$
|
1,427
|
|
|
|
$
|
1,462
|
|
|
2.7%
|
|
2.5%
|
|
$
|
1,423
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||
|
|
2018
|
|
% Increase/(Decrease)
|
|
Constant Currency
(1)
% Increase/(Decrease)
|
|
2017
|
|
|
2018
|
|
% Increase/(Decrease)
|
|
Constant Currency
(1)
% Increase/(Decrease)
|
|
2017
|
||||||||
Retail Unit Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
31,275
|
|
|
(10.3)%
|
|
|
|
34,860
|
|
|
|
89,255
|
|
|
(4.1)%
|
|
|
|
93,088
|
|
||||
U.K.
|
|
8,121
|
|
|
(21.5)%
|
|
|
|
10,341
|
|
|
|
24,507
|
|
|
(9.4)%
|
|
|
|
27,057
|
|
||||
Brazil
|
|
1,986
|
|
|
(8.9)%
|
|
|
|
2,179
|
|
|
|
6,116
|
|
|
1.3%
|
|
|
|
6,035
|
|
||||
Total Same Stores
|
|
41,382
|
|
|
(12.7)%
|
|
|
|
47,380
|
|
|
|
119,878
|
|
|
(5.0)%
|
|
|
|
126,180
|
|
||||
Transactions
|
|
2,202
|
|
|
|
|
|
|
941
|
|
|
|
8,367
|
|
|
|
|
|
|
1,307
|
|
||||
Total
|
|
43,584
|
|
|
(9.8)%
|
|
|
|
48,321
|
|
|
|
128,245
|
|
|
0.6%
|
|
|
|
127,487
|
|
||||
Retail Sales Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
1,168,356
|
|
|
(8.6)%
|
|
N/A
|
|
$
|
1,277,933
|
|
|
|
$
|
3,357,715
|
|
|
(2.3)%
|
|
N/A
|
|
$
|
3,435,980
|
|
U.K.
|
|
236,127
|
|
|
(26.2)%
|
|
(25.3)%
|
|
319,782
|
|
|
|
760,304
|
|
|
(5.7)%
|
|
(10.8)%
|
|
806,364
|
|
||||
Brazil
|
|
59,951
|
|
|
(24.3)%
|
|
(5.5)%
|
|
79,203
|
|
|
|
196,338
|
|
|
(6.9)%
|
|
4.9%
|
|
210,873
|
|
||||
Total Same Stores
|
|
1,464,434
|
|
|
(12.7)%
|
|
(11.6)%
|
|
1,676,918
|
|
|
|
4,314,357
|
|
|
(3.1)%
|
|
(3.5)%
|
|
4,453,217
|
|
||||
Transactions
|
|
75,064
|
|
|
|
|
|
|
33,323
|
|
|
|
294,301
|
|
|
|
|
|
|
43,005
|
|
||||
Total
|
|
$
|
1,539,498
|
|
|
(10.0)%
|
|
(8.9)%
|
|
$
|
1,710,241
|
|
|
|
$
|
4,608,658
|
|
|
2.5%
|
|
1.9%
|
|
$
|
4,496,222
|
|
Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
55,745
|
|
|
(14.9)%
|
|
N/A
|
|
$
|
65,518
|
|
|
|
$
|
162,465
|
|
|
(6.4)%
|
|
N/A
|
|
$
|
173,509
|
|
U.K.
|
|
13,224
|
|
|
(20.5)%
|
|
(19.3)%
|
|
16,625
|
|
|
|
41,058
|
|
|
(8.0)%
|
|
(12.7)%
|
|
44,623
|
|
||||
Brazil
|
|
4,930
|
|
|
9.4%
|
|
36.4%
|
|
4,505
|
|
|
|
12,879
|
|
|
5.6%
|
|
20.6%
|
|
12,193
|
|
||||
Total Same Stores
|
|
73,899
|
|
|
(14.7)%
|
|
(13.1)%
|
|
86,648
|
|
|
|
216,402
|
|
|
(6.0)%
|
|
(6.2)%
|
|
230,325
|
|
||||
Transactions
|
|
3,703
|
|
|
|
|
|
|
1,684
|
|
|
|
13,209
|
|
|
|
|
|
|
2,145
|
|
||||
Total
|
|
$
|
77,602
|
|
|
(12.1)%
|
|
(10.5)%
|
|
$
|
88,332
|
|
|
|
$
|
229,611
|
|
|
(1.2)%
|
|
(1.5)%
|
|
$
|
232,470
|
|
Gross Profit per Retail Unit Sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
1,782
|
|
|
(5.2)%
|
|
N/A
|
|
$
|
1,879
|
|
|
|
$
|
1,820
|
|
|
(2.4)%
|
|
N/A
|
|
$
|
1,864
|
|
U.K.
|
|
$
|
1,628
|
|
|
1.2%
|
|
2.8%
|
|
$
|
1,608
|
|
|
|
$
|
1,675
|
|
|
1.6%
|
|
(3.7)%
|
|
$
|
1,649
|
|
Brazil
|
|
$
|
2,482
|
|
|
20.1%
|
|
49.7%
|
|
$
|
2,067
|
|
|
|
$
|
2,106
|
|
|
4.3%
|
|
19.0%
|
|
$
|
2,020
|
|
Total Same Stores
|
|
$
|
1,786
|
|
|
(2.4)%
|
|
(0.5)%
|
|
$
|
1,829
|
|
|
|
$
|
1,805
|
|
|
(1.1)%
|
|
(1.2)%
|
|
$
|
1,825
|
|
Transactions
|
|
$
|
1,682
|
|
|
|
|
|
|
$
|
1,790
|
|
|
|
$
|
1,579
|
|
|
|
|
|
|
$
|
1,641
|
|
Total
|
|
$
|
1,781
|
|
|
(2.6)%
|
|
(0.7)%
|
|
$
|
1,828
|
|
|
|
$
|
1,790
|
|
|
(1.8)%
|
|
(2.1)%
|
|
$
|
1,823
|
|
Gross Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
4.8%
|
|
|
|
|
|
5.1%
|
|
|
4.8%
|
|
|
|
|
|
5.0%
|
||||||||
U.K.
|
|
5.6%
|
|
|
|
|
|
5.2%
|
|
|
5.4%
|
|
|
|
|
|
5.5%
|
||||||||
Brazil
|
|
8.2%
|
|
|
|
|
|
5.7%
|
|
|
6.6%
|
|
|
|
|
|
5.8%
|
||||||||
Total Same Stores
|
|
5.0%
|
|
|
|
|
|
5.2%
|
|
|
5.0%
|
|
|
|
|
|
5.2%
|
||||||||
Transactions
|
|
4.9%
|
|
|
|
|
|
5.1%
|
|
|
4.5%
|
|
|
|
|
|
5.0%
|
||||||||
Total
|
|
5.0%
|
|
|
|
|
|
5.2%
|
|
|
5.0%
|
|
|
|
|
|
5.2%
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||
|
|
2018
|
|
% Increase/(Decrease)
|
|
2017
|
|
2018
|
|
% Increase/(Decrease)
|
|
2017
|
Toyota/Lexus
|
|
11,532
|
|
(10.1)%
|
|
12,831
|
|
31,302
|
|
(2.5)%
|
|
32,109
|
BMW/MINI
|
|
5,020
|
|
(9.8)%
|
|
5,568
|
|
15,537
|
|
(5.1)%
|
|
16,378
|
Volkswagen/Audi/Porsche
|
|
4,776
|
|
(26.6)%
|
|
6,504
|
|
14,547
|
|
(10.8)%
|
|
16,316
|
Ford/Lincoln
|
|
4,767
|
|
(3.5)%
|
|
4,941
|
|
14,094
|
|
(2.6)%
|
|
14,477
|
Honda/Acura
|
|
3,837
|
|
(12.1)%
|
|
4,367
|
|
11,635
|
|
(1.1)%
|
|
11,768
|
Nissan
|
|
2,957
|
|
(12.0)%
|
|
3,361
|
|
8,093
|
|
(14.9)%
|
|
9,514
|
Chevrolet/GMC/Buick/Cadillac
|
|
2,459
|
|
(16.3)%
|
|
2,938
|
|
7,356
|
|
(7.1)%
|
|
7,914
|
Chrysler/Dodge/Jeep/RAM
|
|
1,715
|
|
(8.7)%
|
|
1,878
|
|
5,186
|
|
4.6%
|
|
4,959
|
Hyundai/Kia
|
|
1,687
|
|
(15.1)%
|
|
1,986
|
|
4,558
|
|
(9.8)%
|
|
5,055
|
Mercedes-Benz/smart/Sprinter
|
|
1,072
|
|
(25.3)%
|
|
1,435
|
|
3,860
|
|
(15.8)%
|
|
4,584
|
Jaguar/Land Rover
|
|
625
|
|
(6.0)%
|
|
665
|
|
1,140
|
|
13.0%
|
|
1,009
|
Other
|
|
935
|
|
3.2%
|
|
906
|
|
2,570
|
|
22.6%
|
|
2,097
|
Total
|
|
41,382
|
|
(12.7)%
|
|
47,380
|
|
119,878
|
|
(5.0)%
|
|
126,180
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||
|
|
2018
|
|
% Increase/(Decrease)
|
|
Constant Currency
(1)
% Increase/(Decrease)
|
|
2017
|
|
|
2018
|
|
% Increase/(Decrease)
|
|
Constant Currency
(1)
% Increase/(Decrease)
|
|
2017
|
||||||||
Retail Unit Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
27,406
|
|
|
5.5%
|
|
|
|
25,980
|
|
|
|
82,235
|
|
|
8.1%
|
|
|
|
76,078
|
|
||||
U.K.
|
|
6,982
|
|
|
7.7%
|
|
|
|
6,483
|
|
|
|
18,844
|
|
|
5.8%
|
|
|
|
17,819
|
|
||||
Brazil
|
|
1,027
|
|
|
(0.7)%
|
|
|
|
1,034
|
|
|
|
3,094
|
|
|
3.0%
|
|
|
|
3,003
|
|
||||
Total Same Stores
|
|
35,415
|
|
|
5.7%
|
|
|
|
33,497
|
|
|
|
104,173
|
|
|
7.5%
|
|
|
|
96,900
|
|
||||
Transactions
|
|
2,261
|
|
|
|
|
|
|
852
|
|
|
|
7,727
|
|
|
|
|
|
|
1,018
|
|
||||
Total
|
|
37,676
|
|
|
9.7%
|
|
|
|
34,349
|
|
|
|
111,900
|
|
|
14.3%
|
|
|
|
97,918
|
|
||||
Retail Sales Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
556,910
|
|
|
0.7%
|
|
N/A
|
|
$
|
552,925
|
|
|
|
$
|
1,690,460
|
|
|
5.0%
|
|
N/A
|
|
$
|
1,609,804
|
|
U.K.
|
|
166,503
|
|
|
13.6%
|
|
14.3%
|
|
146,611
|
|
|
|
462,087
|
|
|
18.8%
|
|
12.7%
|
|
388,892
|
|
||||
Brazil
|
|
19,679
|
|
|
(14.2)%
|
|
6.7%
|
|
22,930
|
|
|
|
65,139
|
|
|
(1.4)%
|
|
10.8%
|
|
66,081
|
|
||||
Total Same Stores
|
|
743,092
|
|
|
2.9%
|
|
3.7%
|
|
722,466
|
|
|
|
2,217,686
|
|
|
7.4%
|
|
6.6%
|
|
2,064,777
|
|
||||
Transactions
|
|
49,313
|
|
|
|
|
|
|
20,572
|
|
|
|
177,142
|
|
|
|
|
|
|
25,137
|
|
||||
Total
|
|
$
|
792,405
|
|
|
6.6%
|
|
7.5%
|
|
$
|
743,038
|
|
|
|
$
|
2,394,828
|
|
|
14.6%
|
|
13.5%
|
|
$
|
2,089,914
|
|
Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
36,505
|
|
|
(2.2)%
|
|
N/A
|
|
$
|
37,316
|
|
|
|
$
|
107,251
|
|
|
(4.2)%
|
|
N/A
|
|
$
|
111,896
|
|
U.K.
|
|
8,918
|
|
|
20.8%
|
|
21.5%
|
|
7,384
|
|
|
|
23,563
|
|
|
21.4%
|
|
15.1%
|
|
19,404
|
|
||||
Brazil
|
|
1,283
|
|
|
(24.2)%
|
|
(6.1)%
|
|
1,693
|
|
|
|
4,011
|
|
|
(16.8)%
|
|
(6.3)%
|
|
4,821
|
|
||||
Total Same Stores
|
|
46,706
|
|
|
0.7%
|
|
1.5%
|
|
46,393
|
|
|
|
134,825
|
|
|
(1.0)%
|
|
(1.5)%
|
|
136,121
|
|
||||
Transactions
|
|
3,449
|
|
|
|
|
|
|
730
|
|
|
|
10,039
|
|
|
|
|
|
|
920
|
|
||||
Total
|
|
$
|
50,155
|
|
|
6.4%
|
|
7.2%
|
|
$
|
47,123
|
|
|
|
$
|
144,864
|
|
|
5.7%
|
|
4.9%
|
|
$
|
137,041
|
|
Gross Profit per Unit Sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
1,332
|
|
|
(7.2)%
|
|
N/A
|
|
$
|
1,436
|
|
|
|
$
|
1,304
|
|
|
(11.4)%
|
|
N/A
|
|
$
|
1,471
|
|
U.K.
|
|
$
|
1,277
|
|
|
12.1%
|
|
12.8%
|
|
$
|
1,139
|
|
|
|
$
|
1,250
|
|
|
14.8%
|
|
8.9%
|
|
$
|
1,089
|
|
Brazil
|
|
$
|
1,249
|
|
|
(23.7)%
|
|
(5.5)%
|
|
$
|
1,637
|
|
|
|
$
|
1,296
|
|
|
(19.3)%
|
|
(9.1)%
|
|
$
|
1,605
|
|
Total Same Stores
|
|
$
|
1,319
|
|
|
(4.8)%
|
|
(4.0)%
|
|
$
|
1,385
|
|
|
|
$
|
1,294
|
|
|
(7.9)%
|
|
(8.4)%
|
|
$
|
1,405
|
|
Transactions
|
|
$
|
1,525
|
|
|
|
|
|
|
$
|
857
|
|
|
|
$
|
1,299
|
|
|
|
|
|
|
$
|
904
|
|
Total
|
|
$
|
1,331
|
|
|
(3.0)%
|
|
(2.2)%
|
|
$
|
1,372
|
|
|
|
$
|
1,295
|
|
|
(7.5)%
|
|
(8.2)%
|
|
$
|
1,400
|
|
Gross Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
6.6%
|
|
|
|
|
|
6.7%
|
|
|
6.3%
|
|
|
|
|
|
7.0%
|
||||||||
U.K.
|
|
5.4%
|
|
|
|
|
|
5.0%
|
|
|
5.1%
|
|
|
|
|
|
5.0%
|
||||||||
Brazil
|
|
6.5%
|
|
|
|
|
|
7.4%
|
|
|
6.2%
|
|
|
|
|
|
7.3%
|
||||||||
Total Same Stores
|
|
6.3%
|
|
|
|
|
|
6.4%
|
|
|
6.1%
|
|
|
|
|
|
6.6%
|
||||||||
Transactions
|
|
7.0%
|
|
|
|
|
|
3.5%
|
|
|
5.7%
|
|
|
|
|
|
3.7%
|
||||||||
Total
|
|
6.3%
|
|
|
|
|
|
6.3%
|
|
|
6.0%
|
|
|
|
|
|
6.6%
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||
|
|
2018
|
|
% Increase/(Decrease)
|
|
Constant Currency
(1)
% Increase/(Decrease)
|
|
2017
|
|
|
2018
|
|
% Increase/(Decrease)
|
|
Constant Currency
(1)
% Increase/(Decrease)
|
|
2017
|
||||||||
Wholesale Unit Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
6,932
|
|
|
(28.1)%
|
|
|
|
9,638
|
|
|
|
23,288
|
|
|
(20.5)%
|
|
|
|
29,300
|
|
||||
U.K.
|
|
4,697
|
|
|
2.2%
|
|
|
|
4,594
|
|
|
|
13,517
|
|
|
5.3%
|
|
|
|
12,840
|
|
||||
Brazil
|
|
359
|
|
|
48.3%
|
|
|
|
242
|
|
|
|
1,030
|
|
|
37.7%
|
|
|
|
748
|
|
||||
Total Same Stores
|
|
11,988
|
|
|
(17.2)%
|
|
|
|
14,474
|
|
|
|
37,835
|
|
|
(11.8)%
|
|
|
|
42,888
|
|
||||
Transactions
|
|
914
|
|
|
|
|
|
|
493
|
|
|
|
3,963
|
|
|
|
|
|
|
683
|
|
||||
Total
|
|
12,902
|
|
|
(13.8)%
|
|
|
|
14,967
|
|
|
|
41,798
|
|
|
(4.1)%
|
|
|
|
43,571
|
|
||||
Wholesale Sales Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
39,451
|
|
|
(36.3)%
|
|
N/A
|
|
$
|
61,896
|
|
|
|
$
|
133,389
|
|
|
(32.8)%
|
|
N/A
|
|
$
|
198,628
|
|
U.K.
|
|
36,763
|
|
|
2.7%
|
|
3.4%
|
|
35,808
|
|
|
|
107,775
|
|
|
11.7%
|
|
5.7%
|
|
96,470
|
|
||||
Brazil
|
|
3,957
|
|
|
40.4%
|
|
76.1%
|
|
2,818
|
|
|
|
11,345
|
|
|
35.8%
|
|
55.2%
|
|
8,357
|
|
||||
Total Same Stores
|
|
80,171
|
|
|
(20.2)%
|
|
(19.0)%
|
|
100,522
|
|
|
|
252,509
|
|
|
(16.8)%
|
|
(18.2)%
|
|
303,455
|
|
||||
Transactions
|
|
6,399
|
|
|
|
|
|
|
4,305
|
|
|
|
30,944
|
|
|
|
|
|
|
4,906
|
|
||||
Total
|
|
$
|
86,570
|
|
|
(17.4)%
|
|
(16.2)%
|
|
$
|
104,827
|
|
|
|
$
|
283,453
|
|
|
(8.1)%
|
|
(9.9)%
|
|
$
|
308,361
|
|
Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
409
|
|
|
414.6%
|
|
N/A
|
|
$
|
(130
|
)
|
|
|
$
|
3,395
|
|
|
1,643.2%
|
|
N/A
|
|
$
|
(220
|
)
|
U.K.
|
|
(623
|
)
|
|
(122.5)%
|
|
(117.2)%
|
|
(280
|
)
|
|
|
(1,601
|
)
|
|
(109.6)%
|
|
(102.7)%
|
|
(764
|
)
|
||||
Brazil
|
|
155
|
|
|
(28.2)%
|
|
(10.2)%
|
|
216
|
|
|
|
372
|
|
|
(44.4)%
|
|
(37.7)%
|
|
669
|
|
||||
Total Same Stores
|
|
(59
|
)
|
|
69.6%
|
|
97.7%
|
|
(194
|
)
|
|
|
2,166
|
|
|
787.6%
|
|
819.3%
|
|
(315
|
)
|
||||
Transactions
|
|
(255
|
)
|
|
|
|
|
|
9
|
|
|
|
(584
|
)
|
|
|
|
|
|
(37
|
)
|
||||
Total
|
|
$
|
(314
|
)
|
|
(69.7)%
|
|
(36.3)%
|
|
$
|
(185
|
)
|
|
|
$
|
1,582
|
|
|
549.4%
|
|
581.5%
|
|
$
|
(352
|
)
|
Gross Profit per Wholesale Unit Sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
59
|
|
|
553.8%
|
|
N/A
|
|
$
|
(13
|
)
|
|
|
$
|
146
|
|
|
1,925.0%
|
|
N/A
|
|
$
|
(8
|
)
|
U.K.
|
|
$
|
(133
|
)
|
|
(118.0)%
|
|
(112.4)%
|
|
$
|
(61
|
)
|
|
|
$
|
(118
|
)
|
|
(96.7)%
|
|
(92.5)%
|
|
$
|
(60
|
)
|
Brazil
|
|
$
|
432
|
|
|
(51.6)%
|
|
(39.4)%
|
|
$
|
893
|
|
|
|
$
|
361
|
|
|
(59.6)%
|
|
(54.7)%
|
|
$
|
894
|
|
Total Same Stores
|
|
$
|
(5
|
)
|
|
61.5%
|
|
97.3%
|
|
$
|
(13
|
)
|
|
|
$
|
57
|
|
|
914.3%
|
|
915.3%
|
|
$
|
(7
|
)
|
Transactions
|
|
$
|
(279
|
)
|
|
|
|
|
|
$
|
18
|
|
|
|
$
|
(147
|
)
|
|
|
|
|
|
$
|
(54
|
)
|
Total
|
|
$
|
(24
|
)
|
|
(100.0)%
|
|
(58.2)%
|
|
$
|
(12
|
)
|
|
|
$
|
38
|
|
|
575.0%
|
|
601.9%
|
|
$
|
(8
|
)
|
Gross Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
1.0%
|
|
|
|
|
|
(0.2)%
|
|
|
2.5%
|
|
|
|
|
|
(0.1)%
|
||||||||
U.K.
|
|
(1.7)%
|
|
|
|
|
|
(0.8)%
|
|
|
(1.5)%
|
|
|
|
|
|
(0.8)%
|
||||||||
Brazil
|
|
3.9%
|
|
|
|
|
|
7.7%
|
|
|
3.3%
|
|
|
|
|
|
8.0%
|
||||||||
Total Same Stores
|
|
(0.1)%
|
|
|
|
|
|
(0.2)%
|
|
|
0.9%
|
|
|
|
|
|
(0.1)%
|
||||||||
Transactions
|
|
(4.0)%
|
|
|
|
|
|
0.2%
|
|
|
(1.9)%
|
|
|
|
|
|
(0.8)%
|
||||||||
Total
|
|
(0.4)%
|
|
|
|
|
|
(0.2)%
|
|
|
0.6%
|
|
|
|
|
|
(0.1)%
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||
|
|
2018
|
|
% Increase/(Decrease)
|
|
Constant Currency
(1)
% Increase/(Decrease)
|
|
2017
|
|
|
2018
|
|
% Increase/(Decrease)
|
|
Constant Currency
(1)
% Increase/(Decrease)
|
|
2017
|
||||||||
Used Vehicle Unit Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
34,338
|
|
|
(3.6)%
|
|
|
|
35,618
|
|
|
|
105,523
|
|
|
0.1%
|
|
|
|
105,378
|
|
||||
U.K.
|
|
11,679
|
|
|
5.4%
|
|
|
|
11,077
|
|
|
|
32,361
|
|
|
5.6%
|
|
|
|
30,659
|
|
||||
Brazil
|
|
1,386
|
|
|
8.6%
|
|
|
|
1,276
|
|
|
|
4,124
|
|
|
9.9%
|
|
|
|
3,751
|
|
||||
Total Same Stores
|
|
47,403
|
|
|
(1.2)%
|
|
|
|
47,971
|
|
|
|
142,008
|
|
|
1.6%
|
|
|
|
139,788
|
|
||||
Transactions
|
|
3,175
|
|
|
|
|
|
|
1,345
|
|
|
|
11,690
|
|
|
|
|
|
|
1,701
|
|
||||
Total
|
|
50,578
|
|
|
2.6%
|
|
|
|
49,316
|
|
|
|
153,698
|
|
|
8.6%
|
|
|
|
141,489
|
|
||||
Sales Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
596,361
|
|
|
(3.0)%
|
|
N/A
|
|
$
|
614,821
|
|
|
|
$
|
1,823,849
|
|
|
0.9%
|
|
N/A
|
|
$
|
1,808,432
|
|
U.K.
|
|
203,266
|
|
|
11.4%
|
|
12.2%
|
|
182,419
|
|
|
|
569,862
|
|
|
17.4%
|
|
11.3%
|
|
485,362
|
|
||||
Brazil
|
|
23,636
|
|
|
(8.2)%
|
|
14.3%
|
|
25,748
|
|
|
|
76,484
|
|
|
2.7%
|
|
15.8%
|
|
74,438
|
|
||||
Total Same Stores
|
|
823,263
|
|
|
—%
|
|
0.9%
|
|
822,988
|
|
|
|
2,470,195
|
|
|
4.3%
|
|
3.5%
|
|
2,368,232
|
|
||||
Transactions
|
|
55,712
|
|
|
|
|
|
|
24,877
|
|
|
|
208,086
|
|
|
|
|
|
|
30,043
|
|
||||
Total
|
|
$
|
878,975
|
|
|
3.7%
|
|
4.5%
|
|
$
|
847,865
|
|
|
|
$
|
2,678,281
|
|
|
11.7%
|
|
10.5%
|
|
$
|
2,398,275
|
|
Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
36,914
|
|
|
(0.7)%
|
|
N/A
|
|
$
|
37,186
|
|
|
|
$
|
110,646
|
|
|
(0.9)%
|
|
N/A
|
|
$
|
111,676
|
|
U.K.
|
|
8,295
|
|
|
16.8%
|
|
17.7%
|
|
7,104
|
|
|
|
21,962
|
|
|
17.8%
|
|
11.5%
|
|
18,640
|
|
||||
Brazil
|
|
1,438
|
|
|
(24.7)%
|
|
(6.6)%
|
|
1,909
|
|
|
|
4,383
|
|
|
(20.2)%
|
|
(10.1)%
|
|
5,490
|
|
||||
Total Same Stores
|
|
46,647
|
|
|
1.0%
|
|
1.9%
|
|
46,199
|
|
|
|
136,991
|
|
|
0.9%
|
|
0.4%
|
|
135,806
|
|
||||
Transactions
|
|
3,194
|
|
|
|
|
|
|
739
|
|
|
|
9,455
|
|
|
|
|
|
|
883
|
|
||||
Total
|
|
$
|
49,841
|
|
|
6.2%
|
|
7.1%
|
|
$
|
46,938
|
|
|
|
$
|
146,446
|
|
|
7.1%
|
|
6.4%
|
|
$
|
136,689
|
|
Gross Profit per Unit Sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
1,075
|
|
|
3.0%
|
|
N/A
|
|
$
|
1,044
|
|
|
|
$
|
1,049
|
|
|
(1.0)%
|
|
N/A
|
|
$
|
1,060
|
|
U.K.
|
|
$
|
710
|
|
|
10.8%
|
|
11.7%
|
|
$
|
641
|
|
|
|
$
|
679
|
|
|
11.7%
|
|
5.7%
|
|
$
|
608
|
|
Brazil
|
|
$
|
1,038
|
|
|
(30.6)%
|
|
(14.0)%
|
|
$
|
1,496
|
|
|
|
$
|
1,063
|
|
|
(27.4)%
|
|
(18.3)%
|
|
$
|
1,464
|
|
Total Same Stores
|
|
$
|
984
|
|
|
2.2%
|
|
3.1%
|
|
$
|
963
|
|
|
|
$
|
965
|
|
|
(0.7)%
|
|
(1.2)%
|
|
$
|
972
|
|
Transactions
|
|
$
|
1,006
|
|
|
|
|
|
|
$
|
549
|
|
|
|
$
|
809
|
|
|
|
|
|
|
$
|
519
|
|
Total
|
|
$
|
985
|
|
|
3.5%
|
|
4.5%
|
|
$
|
952
|
|
|
|
$
|
953
|
|
|
(1.3)%
|
|
(2.1)%
|
|
$
|
966
|
|
Gross Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
6.2%
|
|
|
|
|
|
6.0%
|
|
|
6.1%
|
|
|
|
|
|
6.2%
|
||||||||
U.K.
|
|
4.1%
|
|
|
|
|
|
3.9%
|
|
|
3.9%
|
|
|
|
|
|
3.8%
|
||||||||
Brazil
|
|
6.1%
|
|
|
|
|
|
7.4%
|
|
|
5.7%
|
|
|
|
|
|
7.4%
|
||||||||
Total Same Stores
|
|
5.7%
|
|
|
|
|
|
5.6%
|
|
|
5.5%
|
|
|
|
|
|
5.7%
|
||||||||
Transactions
|
|
5.7%
|
|
|
|
|
|
3.0%
|
|
|
4.5%
|
|
|
|
|
|
2.9%
|
||||||||
Total
|
|
5.7%
|
|
|
|
|
|
5.5%
|
|
|
5.5%
|
|
|
|
|
|
5.7%
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||
|
|
2018
|
|
% Increase/(Decrease)
|
|
Constant Currency
(1)
% Increase/(Decrease)
|
|
2017
|
|
|
2018
|
|
% Increase/(Decrease)
|
|
Constant Currency
(1)
% Increase/(Decrease)
|
|
2017
|
||||||||
Parts and Services Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
285,334
|
|
|
2.2%
|
|
N/A
|
|
$
|
279,191
|
|
|
|
$
|
850,231
|
|
|
2.2%
|
|
N/A
|
|
$
|
831,905
|
|
U.K.
|
|
46,187
|
|
|
5.3%
|
|
5.9%
|
|
43,851
|
|
|
|
130,198
|
|
|
11.2%
|
|
5.3%
|
|
117,105
|
|
||||
Brazil
|
|
10,802
|
|
|
(13.5)%
|
|
7.6%
|
|
12,495
|
|
|
|
33,593
|
|
|
(5.3)%
|
|
6.8%
|
|
35,480
|
|
||||
Total Same Stores
|
|
342,323
|
|
|
2.0%
|
|
2.9%
|
|
335,537
|
|
|
|
1,014,022
|
|
|
3.0%
|
|
2.7%
|
|
984,490
|
|
||||
Transactions
|
|
12,178
|
|
|
|
|
|
|
7,656
|
|
|
|
48,123
|
|
|
|
|
|
|
10,032
|
|
||||
Total
|
|
$
|
354,501
|
|
|
3.3%
|
|
4.2%
|
|
$
|
343,193
|
|
|
|
$
|
1,062,145
|
|
|
6.8%
|
|
6.4%
|
|
$
|
994,522
|
|
Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
153,657
|
|
|
2.4%
|
|
N/A
|
|
$
|
150,073
|
|
|
|
$
|
456,654
|
|
|
2.1%
|
|
N/A
|
|
$
|
447,420
|
|
U.K.
|
|
25,701
|
|
|
2.0%
|
|
2.6%
|
|
25,208
|
|
|
|
74,110
|
|
|
9.6%
|
|
3.9%
|
|
67,596
|
|
||||
Brazil
|
|
4,787
|
|
|
(15.7)%
|
|
4.9%
|
|
5,681
|
|
|
|
14,990
|
|
|
(7.4)%
|
|
4.4%
|
|
16,180
|
|
||||
Total Same Stores
|
|
184,145
|
|
|
1.8%
|
|
2.5%
|
|
180,962
|
|
|
|
545,754
|
|
|
2.7%
|
|
2.4%
|
|
531,196
|
|
||||
Transactions
|
|
7,429
|
|
|
|
|
|
|
4,195
|
|
|
|
27,754
|
|
|
|
|
|
|
5,182
|
|
||||
Total
|
|
$
|
191,574
|
|
|
3.5%
|
|
4.2%
|
|
$
|
185,157
|
|
|
|
$
|
573,508
|
|
|
6.9%
|
|
6.4%
|
|
$
|
536,378
|
|
Gross Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
53.9%
|
|
|
|
|
|
53.8%
|
|
|
53.7%
|
|
|
|
|
|
53.8%
|
||||||||
U.K.
|
|
55.6%
|
|
|
|
|
|
57.5%
|
|
|
56.9%
|
|
|
|
|
|
57.7%
|
||||||||
Brazil
|
|
44.3%
|
|
|
|
|
|
45.5%
|
|
|
44.6%
|
|
|
|
|
|
45.6%
|
||||||||
Total Same Stores
|
|
53.8%
|
|
|
|
|
|
53.9%
|
|
|
53.8%
|
|
|
|
|
|
54.0%
|
||||||||
Transactions
|
|
61.0%
|
|
|
|
|
|
54.8%
|
|
|
57.7%
|
|
|
|
|
|
51.7%
|
||||||||
Total
|
|
54.0%
|
|
|
|
|
|
54.0%
|
|
|
54.0%
|
|
|
|
|
|
53.9%
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||
|
|
2018
|
|
% Increase/(Decrease)
|
|
Constant Currency
(1)
% Increase/(Decrease)
|
|
2017
|
|
|
2018
|
|
% Increase/(Decrease)
|
|
Constant Currency
(1)
% Increase/(Decrease)
|
|
2017
|
||||||||
Retail New and Used Unit Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
58,681
|
|
|
(3.5)%
|
|
|
|
60,840
|
|
|
|
171,490
|
|
|
1.4%
|
|
|
|
169,166
|
|
||||
U.K.
|
|
15,103
|
|
|
(10.2)%
|
|
|
|
16,824
|
|
|
|
43,351
|
|
|
(3.4)%
|
|
|
|
44,876
|
|
||||
Brazil
|
|
3,013
|
|
|
(6.2)%
|
|
|
|
3,213
|
|
|
|
9,210
|
|
|
1.9%
|
|
|
|
9,038
|
|
||||
Total Same Stores
|
|
76,797
|
|
|
(5.0)%
|
|
|
|
80,877
|
|
|
|
224,051
|
|
|
0.4%
|
|
|
|
223,080
|
|
||||
Transactions
|
|
4,463
|
|
|
|
|
|
|
1,793
|
|
|
|
16,094
|
|
|
|
|
|
|
2,325
|
|
||||
Total
|
|
81,260
|
|
|
(1.7)%
|
|
|
|
82,670
|
|
|
|
240,145
|
|
|
6.5%
|
|
|
|
225,405
|
|
||||
Retail Finance Fees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
29,437
|
|
|
(4.4)%
|
|
N/A
|
|
$
|
30,793
|
|
|
|
$
|
85,416
|
|
|
(0.6)%
|
|
N/A
|
|
$
|
85,940
|
|
U.K.
|
|
6,269
|
|
|
(8.7)%
|
|
(7.8)%
|
|
6,864
|
|
|
|
19,718
|
|
|
8.7%
|
|
3.2%
|
|
18,137
|
|
||||
Brazil
|
|
542
|
|
|
(16.9)%
|
|
3.9%
|
|
652
|
|
|
|
1,623
|
|
|
(0.9)%
|
|
12.8%
|
|
1,637
|
|
||||
Total Same Stores
|
|
36,248
|
|
|
(5.4)%
|
|
(4.9)%
|
|
38,309
|
|
|
|
106,757
|
|
|
1.0%
|
|
0.2%
|
|
105,714
|
|
||||
Transactions
|
|
1,829
|
|
|
|
|
|
|
939
|
|
|
|
7,249
|
|
|
|
|
|
|
1,158
|
|
||||
Total
|
|
$
|
38,077
|
|
|
(3.0)%
|
|
(2.5)%
|
|
$
|
39,248
|
|
|
|
$
|
114,006
|
|
|
6.7%
|
|
5.7%
|
|
$
|
106,872
|
|
Vehicle Service Contract Fees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
41,442
|
|
|
16.1%
|
|
N/A
|
|
$
|
35,702
|
|
|
|
$
|
116,870
|
|
|
9.3%
|
|
N/A
|
|
$
|
106,961
|
|
U.K.
|
|
209
|
|
|
11.8%
|
|
13.3%
|
|
187
|
|
|
|
901
|
|
|
54.5%
|
|
46.7%
|
|
583
|
|
||||
Brazil
|
|
—
|
|
|
—%
|
|
—%
|
|
—
|
|
|
|
—
|
|
|
—%
|
|
—%
|
|
—
|
|
||||
Total Same Stores
|
|
41,651
|
|
|
16.1%
|
|
16.1%
|
|
35,889
|
|
|
|
117,771
|
|
|
9.5%
|
|
9.5%
|
|
107,544
|
|
||||
Transactions
|
|
695
|
|
|
|
|
|
|
217
|
|
|
|
1,501
|
|
|
|
|
|
|
241
|
|
||||
Total
|
|
$
|
42,346
|
|
|
17.3%
|
|
17.3%
|
|
$
|
36,106
|
|
|
|
$
|
119,272
|
|
|
10.7%
|
|
10.6%
|
|
$
|
107,785
|
|
Insurance and Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
27,989
|
|
|
(1.9)%
|
|
N/A
|
|
$
|
28,521
|
|
|
|
$
|
86,031
|
|
|
5.6%
|
|
N/A
|
|
$
|
81,437
|
|
U.K.
|
|
4,331
|
|
|
(7.0)%
|
|
(6.0)%
|
|
4,655
|
|
|
|
12,720
|
|
|
8.8%
|
|
3.1%
|
|
11,693
|
|
||||
Brazil
|
|
1,487
|
|
|
(1.5)%
|
|
23.0%
|
|
1,510
|
|
|
|
4,245
|
|
|
(3.7)%
|
|
9.5%
|
|
4,406
|
|
||||
Total Same Stores
|
|
33,807
|
|
|
(2.5)%
|
|
(1.3)%
|
|
34,686
|
|
|
|
102,996
|
|
|
5.6%
|
|
5.5%
|
|
97,536
|
|
||||
Transactions
|
|
1,854
|
|
|
|
|
|
|
953
|
|
|
|
7,188
|
|
|
|
|
|
|
2,104
|
|
||||
Total
|
|
$
|
35,661
|
|
|
0.1%
|
|
1.3%
|
|
$
|
35,639
|
|
|
|
$
|
110,184
|
|
|
10.6%
|
|
10.3%
|
|
$
|
99,640
|
|
Total Finance and Insurance Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
98,868
|
|
|
4.1%
|
|
N/A
|
|
$
|
95,016
|
|
|
|
$
|
288,317
|
|
|
5.1%
|
|
N/A
|
|
$
|
274,338
|
|
U.K.
|
|
10,809
|
|
|
(7.7)%
|
|
(6.7)%
|
|
11,706
|
|
|
|
33,339
|
|
|
9.6%
|
|
4.0%
|
|
30,413
|
|
||||
Brazil
|
|
2,029
|
|
|
(6.2)%
|
|
17.2%
|
|
2,162
|
|
|
|
5,868
|
|
|
(2.9)%
|
|
10.4%
|
|
6,043
|
|
||||
Total Same Stores
|
|
111,706
|
|
|
2.6%
|
|
3.2%
|
|
108,884
|
|
|
|
327,524
|
|
|
5.4%
|
|
5.1%
|
|
310,794
|
|
||||
Transactions
|
|
4,378
|
|
|
|
|
|
|
2,109
|
|
|
|
15,938
|
|
|
|
|
|
|
3,503
|
|
||||
Total
|
|
$
|
116,084
|
|
|
4.6%
|
|
5.2%
|
|
$
|
110,993
|
|
|
|
$
|
343,462
|
|
|
9.3%
|
|
8.8%
|
|
$
|
314,297
|
|
Finance and Insurance Revenues per Retail Unit Sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
1,685
|
|
|
7.9%
|
|
N/A
|
|
$
|
1,562
|
|
|
|
$
|
1,681
|
|
|
3.6%
|
|
N/A
|
|
$
|
1,622
|
|
U.K.
|
|
$
|
716
|
|
|
2.9%
|
|
3.9%
|
|
$
|
696
|
|
|
|
$
|
769
|
|
|
13.4%
|
|
7.7%
|
|
$
|
678
|
|
Brazil
|
|
$
|
673
|
|
|
—%
|
|
25.0%
|
|
$
|
673
|
|
|
|
$
|
637
|
|
|
(4.8)%
|
|
8.4%
|
|
$
|
669
|
|
Total Same Stores
|
|
$
|
1,455
|
|
|
8.1%
|
|
8.6%
|
|
$
|
1,346
|
|
|
|
$
|
1,462
|
|
|
5.0%
|
|
4.6%
|
|
$
|
1,393
|
|
Transactions
|
|
$
|
981
|
|
|
|
|
|
|
$
|
1,176
|
|
|
|
$
|
990
|
|
|
|
|
|
|
$
|
1,507
|
|
Total
|
|
$
|
1,429
|
|
|
6.4%
|
|
7.0%
|
|
$
|
1,343
|
|
|
|
$
|
1,430
|
|
|
2.6%
|
|
2.2%
|
|
$
|
1,394
|
|
Adjusted Total Finance and Insurance Revenues
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
98,868
|
|
|
(2.7)%
|
|
N/A
|
|
$
|
101,566
|
|
|
|
$
|
288,317
|
|
|
2.6%
|
|
N/A
|
|
$
|
280,888
|
|
U.K.
|
|
10,809
|
|
|
(7.7)%
|
|
(6.7)%
|
|
11,706
|
|
|
|
33,339
|
|
|
9.6%
|
|
4.0%
|
|
30,413
|
|
||||
Brazil
|
|
2,029
|
|
|
(6.2)%
|
|
17.2%
|
|
2,162
|
|
|
|
5,868
|
|
|
(2.9)%
|
|
10.4%
|
|
6,043
|
|
||||
Total Same Stores
|
|
111,706
|
|
|
(3.2)%
|
|
(2.7)%
|
|
115,434
|
|
|
|
327,524
|
|
|
3.2%
|
|
2.9%
|
|
317,344
|
|
||||
Transactions
|
|
4,378
|
|
|
|
|
|
|
2,109
|
|
|
|
15,938
|
|
|
|
|
|
|
3,503
|
|
||||
Total
|
|
$
|
116,084
|
|
|
(1.2)%
|
|
(0.7)%
|
|
$
|
117,543
|
|
|
|
$
|
343,462
|
|
|
7.0%
|
|
6.6%
|
|
$
|
320,847
|
|
Adjusted Finance and Insurance Revenues per Retail Unit Sold
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
1,685
|
|
|
1.0%
|
|
N/A
|
|
$
|
1,669
|
|
|
|
$
|
1,681
|
|
|
1.3%
|
|
N/A
|
|
$
|
1,660
|
|
U.K.
|
|
$
|
716
|
|
|
2.9%
|
|
3.9%
|
|
$
|
696
|
|
|
|
$
|
769
|
|
|
13.4%
|
|
7.7%
|
|
$
|
678
|
|
Brazil
|
|
$
|
673
|
|
|
—%
|
|
25.0%
|
|
$
|
673
|
|
|
|
$
|
637
|
|
|
(4.8)%
|
|
8.4%
|
|
$
|
669
|
|
Total Same Stores
|
|
$
|
1,455
|
|
|
2.0%
|
|
2.5%
|
|
$
|
1,427
|
|
|
|
$
|
1,462
|
|
|
2.7%
|
|
2.5%
|
|
$
|
1,423
|
|
Transactions
|
|
$
|
981
|
|
|
|
|
|
|
$
|
1,176
|
|
|
|
$
|
990
|
|
|
|
|
|
|
$
|
1,507
|
|
Total
|
|
$
|
1,429
|
|
|
0.5%
|
|
1.0%
|
|
$
|
1,422
|
|
|
|
$
|
1,430
|
|
|
0.5%
|
|
0.1%
|
|
$
|
1,423
|
|
(1)
|
See “Non-GAAP Financial Measures” for more details.
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||
|
|
2018
|
|
% Increase/(Decrease)
|
|
Constant Currency
(1)
% Increase/(Decrease)
|
|
2017
|
|
|
2018
|
|
% Increase/(Decrease)
|
|
Constant Currency
(1)
% Increase/(Decrease)
|
|
2017
|
||||||||
Personnel
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
157,286
|
|
|
(1.0)%
|
|
N/A
|
|
$
|
158,905
|
|
|
|
$
|
476,562
|
|
|
2.4%
|
|
N/A
|
|
$
|
465,229
|
|
U.K.
|
|
29,018
|
|
|
(0.9)%
|
|
(0.2)%
|
|
29,288
|
|
|
|
82,585
|
|
|
5.6%
|
|
—%
|
|
78,196
|
|
||||
Brazil
|
|
5,623
|
|
|
(20.5)%
|
|
(0.9)%
|
|
7,069
|
|
|
|
18,018
|
|
|
(13.7)%
|
|
(2.8)%
|
|
20,889
|
|
||||
Total Same Stores
|
|
191,927
|
|
|
(1.7)%
|
|
(0.9)%
|
|
195,262
|
|
|
|
577,165
|
|
|
2.3%
|
|
1.9%
|
|
564,314
|
|
||||
Transactions
|
|
8,519
|
|
|
|
|
|
|
4,569
|
|
|
|
31,503
|
|
|
|
|
|
|
6,171
|
|
||||
Total
|
|
$
|
200,446
|
|
|
0.3%
|
|
1.1%
|
|
$
|
199,831
|
|
|
|
$
|
608,668
|
|
|
6.7%
|
|
6.1%
|
|
$
|
570,485
|
|
Advertising
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
16,357
|
|
|
(3.7)%
|
|
N/A
|
|
$
|
16,989
|
|
|
|
$
|
47,267
|
|
|
(8.3)%
|
|
N/A
|
|
$
|
51,556
|
|
U.K.
|
|
1,920
|
|
|
(5.7)%
|
|
(5.3)%
|
|
2,037
|
|
|
|
5,236
|
|
|
5.7%
|
|
0.1%
|
|
4,954
|
|
||||
Brazil
|
|
239
|
|
|
20.7%
|
|
51.7%
|
|
198
|
|
|
|
831
|
|
|
72.0%
|
|
92.5%
|
|
483
|
|
||||
Total Same Stores
|
|
18,516
|
|
|
(3.7)%
|
|
(3.3)%
|
|
19,224
|
|
|
|
53,334
|
|
|
(6.4)%
|
|
(6.7)%
|
|
56,993
|
|
||||
Transactions
|
|
952
|
|
|
|
|
|
|
419
|
|
|
|
3,127
|
|
|
|
|
|
|
579
|
|
||||
Total
|
|
$
|
19,468
|
|
|
(0.9)%
|
|
(0.5)%
|
|
$
|
19,643
|
|
|
|
$
|
56,461
|
|
|
(1.9)%
|
|
(2.4)%
|
|
$
|
57,572
|
|
Rent and Facility Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
18,795
|
|
|
(11.0)%
|
|
N/A
|
|
$
|
21,116
|
|
|
|
$
|
55,982
|
|
|
(9.7)%
|
|
N/A
|
|
$
|
62,005
|
|
U.K.
|
|
5,995
|
|
|
20.7%
|
|
21.3%
|
|
4,966
|
|
|
|
17,337
|
|
|
24.5%
|
|
17.7%
|
|
13,928
|
|
||||
Brazil
|
|
1,822
|
|
|
(19.3)%
|
|
0.8%
|
|
2,258
|
|
|
|
6,184
|
|
|
(7.8)%
|
|
3.7%
|
|
6,705
|
|
||||
Total Same Stores
|
|
26,612
|
|
|
(6.1)%
|
|
(4.4)%
|
|
28,340
|
|
|
|
79,503
|
|
|
(3.8)%
|
|
(4.0)%
|
|
82,638
|
|
||||
Transactions
|
|
1,486
|
|
|
|
|
|
|
868
|
|
|
|
5,850
|
|
|
|
|
|
|
1,591
|
|
||||
Total
|
|
$
|
28,098
|
|
|
(3.8)%
|
|
(2.1)%
|
|
$
|
29,208
|
|
|
|
$
|
85,353
|
|
|
1.3%
|
|
0.9%
|
|
$
|
84,229
|
|
Other SG&A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
46,830
|
|
|
(22.4)%
|
|
N/A
|
|
$
|
60,320
|
|
|
|
$
|
156,103
|
|
|
(0.7)%
|
|
N/A
|
|
$
|
157,152
|
|
U.K.
|
|
13,968
|
|
|
4.6%
|
|
5.1%
|
|
13,360
|
|
|
|
38,877
|
|
|
9.2%
|
|
3.5%
|
|
35,589
|
|
||||
Brazil
|
|
6,041
|
|
|
84.8%
|
|
134.6%
|
|
3,269
|
|
|
|
11,545
|
|
|
43.2%
|
|
68.6%
|
|
8,062
|
|
||||
Total Same Stores
|
|
66,839
|
|
|
(13.1)%
|
|
(10.9)%
|
|
76,949
|
|
|
|
206,525
|
|
|
2.8%
|
|
2.8%
|
|
200,803
|
|
||||
Transactions
|
|
1,920
|
|
|
|
|
|
|
2,696
|
|
|
|
(7,797
|
)
|
|
|
|
|
|
3,585
|
|
||||
Total
|
|
$
|
68,759
|
|
|
(13.7)%
|
|
(11.3)%
|
|
$
|
79,645
|
|
|
|
$
|
198,728
|
|
|
(2.8)%
|
|
(2.9)%
|
|
$
|
204,388
|
|
Total SG&A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
239,268
|
|
|
(7.0)%
|
|
N/A
|
|
$
|
257,330
|
|
|
|
$
|
735,914
|
|
|
—%
|
|
N/A
|
|
$
|
735,942
|
|
U.K.
|
|
50,901
|
|
|
2.5%
|
|
3.2%
|
|
49,651
|
|
|
|
144,035
|
|
|
8.6%
|
|
2.8%
|
|
132,667
|
|
||||
Brazil
|
|
13,725
|
|
|
7.3%
|
|
34.8%
|
|
12,794
|
|
|
|
36,578
|
|
|
1.2%
|
|
15.7%
|
|
36,139
|
|
||||
Total Same Stores
|
|
303,894
|
|
|
(5.0)%
|
|
(3.8)%
|
|
319,775
|
|
|
|
916,527
|
|
|
1.3%
|
|
1.0%
|
|
904,748
|
|
||||
Transactions
|
|
12,877
|
|
|
|
|
|
|
8,552
|
|
|
|
32,683
|
|
|
|
|
|
|
11,926
|
|
||||
Total
|
|
$
|
316,771
|
|
|
(3.5)%
|
|
(2.3)%
|
|
$
|
328,327
|
|
|
|
$
|
949,210
|
|
|
3.5%
|
|
3.1%
|
|
$
|
916,674
|
|
Total Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
345,184
|
|
|
(0.8)%
|
|
N/A
|
|
$
|
347,793
|
|
|
|
$
|
1,018,082
|
|
|
1.1%
|
|
N/A
|
|
$
|
1,006,943
|
|
U.K.
|
|
58,029
|
|
|
(4.3)%
|
|
(3.4)%
|
|
60,643
|
|
|
|
170,469
|
|
|
5.7%
|
|
0.2%
|
|
161,272
|
|
||||
Brazil
|
|
13,184
|
|
|
(7.5)%
|
|
15.2%
|
|
14,257
|
|
|
|
38,120
|
|
|
(4.5)%
|
|
8.3%
|
|
39,906
|
|
||||
Total Same Stores
|
|
416,397
|
|
|
(1.5)%
|
|
(0.6)%
|
|
422,693
|
|
|
|
1,226,671
|
|
|
1.5%
|
|
1.2%
|
|
1,208,121
|
|
||||
Transactions
|
|
18,704
|
|
|
|
|
|
|
8,727
|
|
|
|
66,356
|
|
|
|
|
|
|
11,713
|
|
||||
Total
|
|
$
|
435,101
|
|
|
0.9%
|
|
1.8%
|
|
$
|
431,420
|
|
|
|
$
|
1,293,027
|
|
|
6.0%
|
|
5.5%
|
|
$
|
1,219,834
|
|
SG&A as a % of Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
69.3%
|
|
|
|
|
|
74.0%
|
|
|
72.3%
|
|
|
|
|
|
73.1%
|
||||||||
U.K.
|
|
87.7%
|
|
|
|
|
|
81.9%
|
|
|
84.5%
|
|
|
|
|
|
82.3%
|
||||||||
Brazil
|
|
104.1%
|
|
|
|
|
|
89.7%
|
|
|
96.0%
|
|
|
|
|
|
90.6%
|
||||||||
Total Same Stores
|
|
73.0%
|
|
|
|
|
|
75.7%
|
|
|
74.7%
|
|
|
|
|
|
74.9%
|
||||||||
Transactions
|
|
68.8%
|
|
|
|
|
|
98.0%
|
|
|
49.3%
|
|
|
|
|
|
101.8%
|
||||||||
Total
|
|
72.8%
|
|
|
|
|
|
76.1%
|
|
|
73.4%
|
|
|
|
|
|
75.1%
|
||||||||
Adjusted Total SG&A
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
243,036
|
|
|
(1.9)%
|
|
N/A
|
|
$
|
247,663
|
|
|
|
$
|
731,870
|
|
|
0.6%
|
|
N/A
|
|
$
|
727,465
|
|
U.K.
|
|
50,901
|
|
|
2.5%
|
|
3.2%
|
|
49,651
|
|
|
|
144,035
|
|
|
8.8%
|
|
3.0%
|
|
132,379
|
|
||||
Brazil
|
|
11,218
|
|
|
(12.3)%
|
|
9.4%
|
|
12,794
|
|
|
|
33,644
|
|
|
(6.9)%
|
|
5.3%
|
|
36,139
|
|
||||
Total Same Stores
|
|
305,155
|
|
|
(1.6)%
|
|
(0.6)%
|
|
310,108
|
|
|
|
909,549
|
|
|
1.5%
|
|
1.2%
|
|
895,983
|
|
||||
Transactions
|
|
15,286
|
|
|
|
|
|
|
8,552
|
|
|
|
55,088
|
|
|
|
|
|
|
11,925
|
|
||||
Total
|
|
$
|
320,441
|
|
|
0.6%
|
|
1.6%
|
|
$
|
318,660
|
|
|
|
$
|
964,637
|
|
|
6.2%
|
|
5.7%
|
|
$
|
907,908
|
|
Adjusted SG&A as a % of Gross Profit
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
70.4%
|
|
|
|
|
|
69.9%
|
|
|
71.9%
|
|
|
|
|
|
71.8%
|
||||||||
U.K.
|
|
87.7%
|
|
|
|
|
|
81.9%
|
|
|
84.5%
|
|
|
|
|
|
82.1%
|
||||||||
Brazil
|
|
85.1%
|
|
|
|
|
|
89.7%
|
|
|
88.3%
|
|
|
|
|
|
90.6%
|
||||||||
Total Same Stores
|
|
73.3%
|
|
|
|
|
|
72.2%
|
|
|
74.1%
|
|
|
|
|
|
73.8%
|
||||||||
Transactions
|
|
81.7%
|
|
|
|
|
|
98.0%
|
|
|
83.0%
|
|
|
|
|
|
101.8%
|
||||||||
Total
|
|
73.6%
|
|
|
|
|
|
72.8%
|
|
|
74.6%
|
|
|
|
|
|
74.0%
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Employees
|
|
14,500
|
|
|
|
|
|
14,200
|
|
|
14,500
|
|
|
|
|
|
14,200
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||
|
|
2018
|
|
% Increase/(Decrease)
|
|
Constant Currency
(1)
% Increase/(Decrease)
|
|
2017
|
|
|
2018
|
|
% Increase/(Decrease)
|
|
Constant Currency
(1)
% Increase/(Decrease)
|
|
2017
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
13,163
|
|
|
9.3%
|
|
N/A
|
|
$
|
12,038
|
|
|
|
$
|
38,366
|
|
|
9.1%
|
|
N/A
|
|
$
|
35,155
|
|
U.K.
|
|
2,656
|
|
|
19.3%
|
|
20.1%
|
|
2,227
|
|
|
|
7,405
|
|
|
30.4%
|
|
23.8%
|
|
5,677
|
|
||||
Brazil
|
|
362
|
|
|
(1.1)%
|
|
23.4%
|
|
366
|
|
|
|
1,224
|
|
|
12.5%
|
|
27.7%
|
|
1,088
|
|
||||
Total Same Stores
|
|
16,181
|
|
|
10.6%
|
|
11.3%
|
|
14,631
|
|
|
|
46,995
|
|
|
12.1%
|
|
11.6%
|
|
41,920
|
|
||||
Transactions
|
|
800
|
|
|
|
|
|
|
428
|
|
|
|
2,966
|
|
|
|
|
|
|
838
|
|
||||
Total
|
|
$
|
16,981
|
|
|
12.8%
|
|
13.5%
|
|
$
|
15,059
|
|
|
|
$
|
49,961
|
|
|
16.8%
|
|
16.1%
|
|
$
|
42,758
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||
|
|
2018
|
|
% Increase/(Decrease)
|
|
Constant Currency
(1)
% Increase/(Decrease)
|
|
2017
|
|
|
2018
|
|
% Increase/(Decrease)
|
|
Constant Currency
(1)
% Increase/(Decrease)
|
|
2017
|
||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
$
|
12,663
|
|
|
7.3%
|
|
N/A
|
|
$
|
11,796
|
|
|
|
$
|
37,226
|
|
|
7.4%
|
|
N/A
|
|
$
|
34,674
|
|
U.K.
|
|
1,351
|
|
|
3.7%
|
|
4.4%
|
|
1,303
|
|
|
|
3,944
|
|
|
16.9%
|
|
10.8%
|
|
3,374
|
|
||||
Brazil
|
|
225
|
|
|
59.6%
|
|
99.1%
|
|
141
|
|
|
|
597
|
|
|
88.3%
|
|
112.3%
|
|
317
|
|
||||
Total Same Stores
|
|
14,239
|
|
|
7.5%
|
|
8.0%
|
|
13,240
|
|
|
|
41,767
|
|
|
8.9%
|
|
8.5%
|
|
38,365
|
|
||||
Transactions
|
|
446
|
|
|
|
|
|
|
251
|
|
|
|
1,568
|
|
|
|
|
|
|
294
|
|
||||
Total
|
|
$
|
14,685
|
|
|
8.9%
|
|
9.4%
|
|
$
|
13,491
|
|
|
|
$
|
43,335
|
|
|
12.1%
|
|
11.7%
|
|
$
|
38,659
|
|
Total manufacturers' assistance
|
|
$
|
12,034
|
|
|
(11.3)%
|
|
(11.2)%
|
|
$
|
13,561
|
|
|
|
$
|
34,516
|
|
|
(3.4)%
|
|
(3.6)%
|
|
$
|
35,745
|
|
|
|
Nine Months Ended September 30,
|
||||||
GAAP Basis
|
|
2018
|
|
2017
|
||||
|
|
(In thousands)
|
||||||
Net cash provided by operating activities
|
|
$
|
357,415
|
|
|
$
|
307,234
|
|
Net cash used in investing activities
|
|
(145,472
|
)
|
|
(246,733
|
)
|
||
Net cash used in financing activities
|
|
(204,242
|
)
|
|
(18,110
|
)
|
||
Effect of exchange rate changes on cash
|
|
(2,941
|
)
|
|
867
|
|
||
Net increase in cash, cash equivalents, and restricted cash
|
|
$
|
4,760
|
|
|
$
|
43,258
|
|
|
|
Nine Months Ended September 30,
|
||||||
Adjusted, Non-GAAP Basis
|
|
2018
|
|
2017
|
||||
|
|
(In thousands)
|
||||||
Adjusted net cash provided by operating activities
|
|
$
|
280,107
|
|
|
$
|
228,949
|
|
Adjusted net cash used in investing activities
|
|
(153,433
|
)
|
|
(232,000
|
)
|
||
Adjusted net cash (used in) provided by financing activities
|
|
(118,973
|
)
|
|
45,442
|
|
||
Effect of exchange rate changes on cash
|
|
(2,941
|
)
|
|
867
|
|
||
Net increase in cash, cash equivalents, and restricted cash
|
|
$
|
4,760
|
|
|
$
|
43,258
|
|
|
|
As of September 30, 2018
|
||||||||||
U.S. Credit Facilities
|
|
Total
Commitment
|
|
Outstanding
|
|
Available
|
||||||
|
|
|
|
(In thousands)
|
|
|
||||||
Floorplan Line
(1)
|
|
$
|
1,440,000
|
|
|
$
|
1,055,079
|
|
|
$
|
384,921
|
|
Acquisition Line
(2)
|
|
360,000
|
|
|
58,216
|
|
|
301,784
|
|
|||
Total Revolving Credit Facility
|
|
1,800,000
|
|
|
1,113,295
|
|
|
686,705
|
|
|||
FMCC Facility
(3)
|
|
300,000
|
|
|
128,155
|
|
|
171,845
|
|
|||
Total U.S. Credit Facilities
(4)
|
|
$
|
2,100,000
|
|
|
$
|
1,241,450
|
|
|
$
|
858,550
|
|
(1)
|
The available balance at
September 30, 2018
includes
$71.4 million
of immediately available funds.
|
(2)
|
The outstanding balance of
$58.2 million
is related to outstanding letters of credit of
$25.4 million
and $
32.9 million
in borrowings as of
September 30, 2018
. The borrowings outstanding under the Acquisition Line represent
25.0 million
British pound sterling translated at the spot rate on the day borrowed, solely for the purpose of calculating the Outstanding and Available borrowings under the Acquisition Line. The available borrowings may be limited from time to time, based on certain debt covenants.
|
(3)
|
The available balance at
September 30, 2018
includes $
20.5 million
of immediately available funds.
|
(4)
|
The outstanding balance excludes
$295.5 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.
|
|
As of September 30, 2018
|
|
|
Required
|
Actual
|
Total Adjusted Leverage Ratio
|
< 5.50
|
3.69
|
Fixed Charge Coverage Ratio
|
> 1.20
|
2.46
|
|
|
U.S. Adjustments for
|
||||||||||||||||||||||
|
|
Three Months Ended September 30, 2018
|
||||||||||||||||||||||
|
|
U.S. GAAP
|
|
Gain / loss on real estate and dealership transactions
|
|
Legal settlements
|
|
Non-cash asset impairments
|
|
Tax Rate Changes
|
|
Non-GAAP Adjusted
|
||||||||||||
Selling, general and administrative expenses
|
|
$
|
242,210
|
|
|
$
|
5,394
|
|
|
$
|
1,396
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
249,000
|
|
Asset impairments
|
|
23,159
|
|
|
—
|
|
|
—
|
|
|
(23,159
|
)
|
|
—
|
|
|
—
|
|
||||||
Income (loss) from operations
|
|
73,592
|
|
|
(5,394
|
)
|
|
(1,396
|
)
|
|
23,159
|
|
|
—
|
|
|
89,961
|
|
||||||
Income (loss) before income taxes
|
|
43,415
|
|
|
(5,394
|
)
|
|
(1,396
|
)
|
|
23,159
|
|
|
—
|
|
|
59,784
|
|
||||||
(Provision) benefit for income taxes
|
|
(9,061
|
)
|
|
1,249
|
|
|
339
|
|
|
(5,504
|
)
|
|
(705
|
)
|
|
(13,682
|
)
|
||||||
Net income (loss)
|
|
$
|
34,354
|
|
|
$
|
(4,145
|
)
|
|
$
|
(1,057
|
)
|
|
$
|
17,655
|
|
|
$
|
(705
|
)
|
|
$
|
46,102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
SG&A as % Gross Profit:
|
|
68.7
|
|
|
|
|
|
|
|
|
|
|
70.6
|
|
||||||||||
Operating Margin %:
|
|
3.3
|
|
|
|
|
|
|
|
|
|
|
4.1
|
|
||||||||||
Pretax Margin %:
|
|
2.0
|
|
|
|
|
|
|
|
|
|
|
2.7
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Store SG&A
|
|
$
|
239,268
|
|
|
$
|
2,372
|
|
|
$
|
1,396
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
243,036
|
|
Same Store SG&A as % Gross Profit:
|
|
69.3
|
|
|
|
|
|
|
|
|
|
|
70.4
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Store income (loss) from operations
|
|
$
|
70,592
|
|
|
$
|
(2,372
|
)
|
|
$
|
(1,396
|
)
|
|
$
|
22,161
|
|
|
$
|
—
|
|
|
$
|
88,985
|
|
Same Store Operating Margin %:
|
|
3.3
|
|
|
|
|
|
|
|
|
|
|
4.1
|
|
|
|
Brazil Adjustments for
|
||||||||||
|
|
Three Months Ended September 30, 2018
|
||||||||||
|
|
U.S. GAAP
|
|
Legal settlements
|
|
Non-GAAP Adjusted
|
||||||
Selling, general and administrative expenses
|
|
$
|
14,857
|
|
|
$
|
(3,120
|
)
|
|
$
|
11,737
|
|
(Loss) income from operations
|
|
(1,314
|
)
|
|
3,120
|
|
|
1,806
|
|
|||
(Loss) income before income taxes
|
|
(1,713
|
)
|
|
3,120
|
|
|
1,407
|
|
|||
Provision for income taxes
|
|
(160
|
)
|
|
(457
|
)
|
|
(617
|
)
|
|||
Net (loss) income
|
|
$
|
(1,873
|
)
|
|
$
|
2,663
|
|
|
$
|
790
|
|
|
|
|
|
|
|
|
||||||
SG&A as % Gross Profit:
|
|
106.8
|
|
|
|
|
84.4
|
|
||||
Operating Margin %:
|
|
(1.3
|
)
|
|
|
|
1.8
|
|
||||
Pretax Margin %:
|
|
(1.7
|
)
|
|
|
|
1.4
|
|
||||
|
|
|
|
|
|
|
||||||
Same Store SG&A
|
|
$
|
13,725
|
|
|
$
|
(2,507
|
)
|
|
$
|
11,218
|
|
Same Store SG&A as % Gross Profit:
|
|
104.1
|
|
|
|
|
85.1
|
|
||||
|
|
|
|
|
|
|
||||||
Same Store (loss) income from operations
|
|
$
|
(903
|
)
|
|
$
|
2,507
|
|
|
$
|
1,604
|
|
Same Store Operating Margin %:
|
|
(0.9
|
)
|
|
|
|
1.7
|
|
|
|
Consolidated Adjustments for
|
||||||||||||||||||||||
|
|
Three Months Ended September 30, 2018
|
||||||||||||||||||||||
|
|
U.S. GAAP
|
|
Gain / loss on real estate and dealership transactions
|
|
Legal settlements
|
|
Non-cash asset impairments
|
|
Tax Rate Changes
|
|
Non-GAAP Adjusted
|
||||||||||||
Selling, general and administrative expenses
|
|
$
|
316,771
|
|
|
$
|
5,394
|
|
|
$
|
(1,724
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
320,441
|
|
Asset impairments
|
|
23,159
|
|
|
—
|
|
|
—
|
|
|
(23,159
|
)
|
|
—
|
|
|
—
|
|
||||||
Income (loss) from operations
|
|
78,190
|
|
|
(5,394
|
)
|
|
1,724
|
|
|
23,159
|
|
|
—
|
|
|
97,679
|
|
||||||
Income (loss) before income taxes
|
|
44,365
|
|
|
(5,394
|
)
|
|
1,724
|
|
|
23,159
|
|
|
—
|
|
|
63,854
|
|
||||||
(Provision) benefit for income taxes
|
|
(9,587
|
)
|
|
1,249
|
|
|
(118
|
)
|
|
(5,504
|
)
|
|
(705
|
)
|
|
(14,665
|
)
|
||||||
Net income (loss)
|
|
$
|
34,778
|
|
|
$
|
(4,145
|
)
|
|
$
|
1,606
|
|
|
$
|
17,655
|
|
|
$
|
(705
|
)
|
|
$
|
49,189
|
|
Less: Adjusted earnings (loss) allocated to participating securities
|
|
1,181
|
|
|
(141
|
)
|
|
55
|
|
|
605
|
|
|
(24
|
)
|
|
1,676
|
|
||||||
Adjusted net income (loss) available to diluted common shares
|
|
$
|
33,597
|
|
|
$
|
(4,004
|
)
|
|
$
|
1,551
|
|
|
$
|
17,050
|
|
|
$
|
(681
|
)
|
|
$
|
47,513
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Diluted income (loss) per common share
|
|
$
|
1.74
|
|
|
$
|
(0.21
|
)
|
|
$
|
0.08
|
|
|
$
|
0.89
|
|
|
$
|
(0.03
|
)
|
|
$
|
2.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Effective tax rate %
|
|
21.6
|
|
|
|
|
|
|
|
|
|
|
23.0
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
SG&A as % Gross Profit:
|
|
72.8
|
|
|
|
|
|
|
|
|
|
|
73.6
|
|
||||||||||
Operating Margin %:
|
|
2.7
|
|
|
|
|
|
|
|
|
|
|
3.4
|
|
||||||||||
Pretax Margin %:
|
|
1.5
|
|
|
|
|
|
|
|
|
|
|
2.2
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Store SG&A
|
|
$
|
303,894
|
|
|
$
|
2,372
|
|
|
$
|
(1,111
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
305,155
|
|
Same Store SG&A as % Gross Profit:
|
|
73.0
|
|
|
|
|
|
|
|
|
|
|
73.3
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Store income (loss) from operations
|
|
$
|
74,161
|
|
|
$
|
(2,372
|
)
|
|
$
|
1,111
|
|
|
$
|
22,161
|
|
|
$
|
—
|
|
|
$
|
95,061
|
|
Same Store Operating Margin %:
|
|
2.7
|
|
|
|
|
|
|
|
|
|
|
3.5
|
|
|
|
U.S. Adjustments for
|
||||||||||||||||||||||||||
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||||||||||
|
|
U.S. GAAP
|
|
Catastrophic events
|
|
Gain / loss on real estate and dealership transactions
|
|
Legal settlements
|
|
Non-cash asset impairments
|
|
Tax Rate Changes
|
|
Non-GAAP Adjusted
|
||||||||||||||
Selling, general and administrative expenses
|
|
$
|
729,430
|
|
|
$
|
(5,812
|
)
|
|
$
|
25,513
|
|
|
$
|
(604
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
748,527
|
|
Asset impairments
|
|
27,427
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(27,427
|
)
|
|
—
|
|
|
—
|
|
|||||||
Income (loss) from operations
|
|
242,538
|
|
|
5,812
|
|
|
(25,513
|
)
|
|
604
|
|
|
27,427
|
|
|
—
|
|
|
250,868
|
|
|||||||
Income (loss) before income taxes
|
|
152,867
|
|
|
5,812
|
|
|
(25,513
|
)
|
|
604
|
|
|
27,427
|
|
|
—
|
|
|
161,197
|
|
|||||||
(Provision) benefit for income taxes
|
|
(35,821
|
)
|
|
(1,444
|
)
|
|
6,166
|
|
|
(157
|
)
|
|
(6,593
|
)
|
|
(705
|
)
|
|
(38,554
|
)
|
|||||||
Net income (loss)
|
|
$
|
117,046
|
|
|
$
|
4,368
|
|
|
$
|
(19,347
|
)
|
|
$
|
447
|
|
|
$
|
20,834
|
|
|
$
|
(705
|
)
|
|
$
|
122,643
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
SG&A as % Gross Profit:
|
|
70.2
|
|
|
|
|
|
|
|
|
|
|
|
72.1
|
|
|||||||||||||
Operating Margin %:
|
|
3.8
|
|
|
|
|
|
|
|
|
|
|
|
3.9
|
|
|||||||||||||
Pretax Margin %:
|
|
2.4
|
|
|
|
|
|
|
|
|
|
|
|
2.5
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Same Store SG&A
|
|
$
|
735,914
|
|
|
$
|
(5,812
|
)
|
|
$
|
2,372
|
|
|
$
|
(604
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
731,870
|
|
Same Store SG&A as % Gross Profit:
|
|
72.3
|
|
|
|
|
|
|
|
|
|
|
|
|
71.9
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Same Store income (loss) from operations
|
|
$
|
217,619
|
|
|
$
|
5,812
|
|
|
$
|
(2,372
|
)
|
|
$
|
604
|
|
|
$
|
26,183
|
|
|
$
|
—
|
|
|
$
|
247,846
|
|
Same Store Operating Margin %:
|
|
3.4
|
|
|
|
|
|
|
|
|
|
|
|
|
3.9
|
|
|
|
|
|
Brazil Adjustments for
|
|
|||||||
|
|
Nine Months Ended September 30, 2018
|
||||||||||
|
|
U.S. GAAP
|
|
Legal Settlements
|
|
Non-GAAP Adjusted
|
||||||
Selling, general and administrative expenses
|
|
$
|
38,222
|
|
|
$
|
(3,670
|
)
|
|
$
|
34,552
|
|
(Loss) income from operations
|
|
(227
|
)
|
|
3,670
|
|
|
3,443
|
|
|||
(Loss) income before income taxes
|
|
(1,563
|
)
|
|
3,670
|
|
|
2,107
|
|
|||
Provision for income taxes
|
|
(714
|
)
|
|
(530
|
)
|
|
(1,244
|
)
|
|||
Net (loss) income
|
|
$
|
(2,277
|
)
|
|
$
|
3,140
|
|
|
$
|
863
|
|
|
|
|
|
|
|
|
||||||
SG&A as % Gross Profit:
|
|
97.4
|
|
|
|
|
88.1
|
|
||||
Operating Margin %:
|
|
(0.1
|
)
|
|
|
|
1.1
|
|
||||
Pretax Margin %:
|
|
(0.5
|
)
|
|
|
|
0.7
|
|
||||
|
|
|
|
|
|
|
||||||
Same Store SG&A
|
|
$
|
36,578
|
|
|
$
|
(2,934
|
)
|
|
$
|
33,644
|
|
Same Store SG&A as % Gross Profit:
|
|
96.0
|
|
|
|
|
88.3
|
|
||||
|
|
|
|
|
|
|
||||||
Same Store income from operations
|
|
$
|
318
|
|
|
$
|
2,934
|
|
|
$
|
3,252
|
|
Same Store Operating Margin %:
|
|
0.1
|
|
|
|
|
1.0
|
|
|
|
|
|
Consolidated Adjustments for
|
|
|
|
|
||||||||||||||||||||
|
|
|
Nine Months Ended September 30, 2018
|
|
||||||||||||||||||||||||
|
|
U.S. GAAP
|
|
Catastrophic events
|
|
Gain / loss on real estate and dealership transactions
|
|
Legal settlements
|
|
Non-cash asset impairments
|
|
Tax Rate Changes
|
|
Non-GAAP Adjusted
|
||||||||||||||
Selling, general and administrative expenses
|
|
$
|
949,210
|
|
|
$
|
(5,812
|
)
|
|
$
|
25,513
|
|
|
$
|
(4,274
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
964,637
|
|
Asset impairments
|
|
27,427
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(27,427
|
)
|
|
—
|
|
|
—
|
|
|||||||
Income (loss) from operations
|
|
266,429
|
|
|
5,812
|
|
|
(25,513
|
)
|
|
4,274
|
|
|
27,427
|
|
|
—
|
|
|
278,429
|
|
|||||||
Income (loss) before income taxes
|
|
165,720
|
|
|
5,812
|
|
|
(25,513
|
)
|
|
4,274
|
|
|
27,427
|
|
|
—
|
|
|
177,720
|
|
|||||||
(Provision) benefit for income taxes
|
|
(38,666
|
)
|
|
(1,444
|
)
|
|
6,166
|
|
|
(687
|
)
|
|
(6,593
|
)
|
|
(705
|
)
|
|
(41,929
|
)
|
|||||||
Net income (loss)
|
|
$
|
127,054
|
|
|
$
|
4,368
|
|
|
$
|
(19,347
|
)
|
|
$
|
3,587
|
|
|
$
|
20,834
|
|
|
$
|
(705
|
)
|
|
135,791
|
|
|
Less: Adjusted earnings (loss) allocated to participating securities
|
|
4,306
|
|
|
149
|
|
|
(660
|
)
|
|
123
|
|
|
711
|
|
|
(24
|
)
|
|
4,605
|
|
|||||||
Adjusted net income (loss) available to diluted common shares
|
|
$
|
122,748
|
|
|
$
|
4,219
|
|
|
$
|
(18,687
|
)
|
|
$
|
3,464
|
|
|
$
|
20,123
|
|
|
$
|
(681
|
)
|
|
$
|
131,186
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Diluted income (loss) per common share
|
|
$
|
6.18
|
|
|
$
|
0.21
|
|
|
$
|
(0.94
|
)
|
|
$
|
0.18
|
|
|
$
|
1.00
|
|
|
$
|
(0.03
|
)
|
|
$
|
6.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Effective tax rate %
|
|
23.3
|
|
|
|
|
|
|
|
|
|
|
|
|
23.6
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
SG&A as % Gross Profit:
|
|
73.4
|
|
|
|
|
|
|
|
|
|
|
|
|
74.6
|
|
||||||||||||
Operating Margin %:
|
|
3.1
|
|
|
|
|
|
|
|
|
|
|
|
|
3.2
|
|
||||||||||||
Pretax Margin %:
|
|
1.9
|
|
|
|
|
|
|
|
|
|
|
|
|
2.0
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Same Store SG&A
|
|
$
|
916,527
|
|
|
$
|
(5,812
|
)
|
|
$
|
2,372
|
|
|
$
|
(3,538
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
909,549
|
|
Same Store SG&A as % Gross Profit:
|
|
74.7
|
|
|
|
|
|
|
|
|
|
|
|
|
74.1
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Same Store income (loss) from operations
|
|
$
|
236,966
|
|
|
$
|
5,812
|
|
|
$
|
(2,372
|
)
|
|
$
|
3,538
|
|
|
$
|
26,183
|
|
|
$
|
—
|
|
|
$
|
270,127
|
|
Same Store Operating Margin %:
|
|
2.9
|
|
|
|
|
|
|
|
|
|
|
|
|
3.3
|
|
|
|
|
|
U.S. Adjustments for
|
|
|
||||||||||||||||||||||
|
|
Three Months Ended September 30, 2017
|
||||||||||||||||||||||||||
|
|
U.S. GAAP
|
|
Catastrophic events
|
|
Gain / loss on real estate and dealership transactions
|
|
Legal settlements
(1)
|
|
Non-cash asset impairments
|
|
Allowance for uncertain tax positions
|
|
Non-GAAP Adjusted
|
||||||||||||||
Finance, insurance, and other revenues, net
|
|
$
|
96,383
|
|
|
$
|
6,550
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
102,933
|
|
Selling, general and administrative expenses
|
|
261,787
|
|
|
(8,149
|
)
|
|
(798
|
)
|
|
(720
|
)
|
|
—
|
|
|
—
|
|
|
252,120
|
|
|||||||
Asset impairments
|
|
9,526
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,526
|
)
|
|
—
|
|
|
—
|
|
|||||||
Income from operations
|
|
69,874
|
|
|
14,699
|
|
|
798
|
|
|
720
|
|
|
9,526
|
|
|
—
|
|
|
95,617
|
|
|||||||
Income before income taxes
|
|
41,133
|
|
|
14,699
|
|
|
798
|
|
|
720
|
|
|
9,526
|
|
|
—
|
|
|
66,876
|
|
|||||||
(Provision) benefit for income taxes
|
|
(16,258
|
)
|
|
(5,677
|
)
|
|
(301
|
)
|
|
(270
|
)
|
|
(3,579
|
)
|
|
834
|
|
|
(25,251
|
)
|
|||||||
Net income
|
|
$
|
24,875
|
|
|
$
|
9,022
|
|
|
$
|
497
|
|
|
$
|
450
|
|
|
$
|
5,947
|
|
|
$
|
834
|
|
|
$
|
41,625
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
SG&A as % Gross Profit:
|
|
74.0
|
|
|
|
|
|
|
|
|
|
|
|
|
70.0
|
|
||||||||||||
Operating Margin %:
|
|
3.0
|
|
|
|
|
|
|
|
|
|
|
|
|
4.1
|
|
||||||||||||
Pretax Margin %:
|
|
1.8
|
|
|
|
|
|
|
|
|
|
|
|
|
2.9
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
2017 vs. 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Same Store Finance, insurance, and other revenues, net
|
|
$
|
95,016
|
|
|
$
|
6,550
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
101,566
|
|
Same Store SG&A
|
|
$
|
257,330
|
|
|
$
|
(8,149
|
)
|
|
$
|
(798
|
)
|
|
$
|
(720
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
247,663
|
|
Same Store SG&A as % Gross Profit:
|
|
74.0
|
|
|
|
|
|
|
|
|
|
|
|
|
69.9
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Same Store income from operations
|
|
$
|
68,899
|
|
|
$
|
14,699
|
|
|
$
|
798
|
|
|
$
|
720
|
|
|
$
|
9,526
|
|
|
$
|
—
|
|
|
$
|
94,642
|
|
Same Store Operating Margin %:
|
|
3.0
|
|
|
|
|
|
|
|
|
|
|
|
|
4.2
|
|
|
|
Consolidated Adjustments for
|
||||||||||||||||||||||||||
|
|
Three Months Ended September 30, 2017
|
||||||||||||||||||||||||||
|
|
U.S. GAAP
|
|
Catastrophic events
|
|
Gain / loss on real estate and dealership transactions
|
|
Legal settlements
(1)
|
|
Non-Cash asset impairments
|
|
Allowance for uncertain tax positions
|
|
Non-GAAP Adjusted
|
||||||||||||||
Finance, insurance, and other revenues, net
|
|
$
|
110,993
|
|
|
$
|
6,550
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
117,543
|
|
Selling, general and administrative expenses
|
|
328,327
|
|
|
(8,149
|
)
|
|
(798
|
)
|
|
(720
|
)
|
|
—
|
|
|
—
|
|
|
318,660
|
|
|||||||
Asset impairments
|
|
9,526
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,526
|
)
|
|
—
|
|
|
—
|
|
|||||||
Income from operations
|
|
78,508
|
|
|
14,699
|
|
|
798
|
|
|
720
|
|
|
9,526
|
|
|
—
|
|
|
104,251
|
|
|||||||
Income before income taxes
|
|
47,143
|
|
|
14,699
|
|
|
798
|
|
|
720
|
|
|
9,526
|
|
|
—
|
|
|
72,886
|
|
|||||||
(Provision) benefit for income taxes
|
|
(17,262
|
)
|
|
(5,677
|
)
|
|
(301
|
)
|
|
(270
|
)
|
|
(3,579
|
)
|
|
834
|
|
|
(26,255
|
)
|
|||||||
Net income
|
|
$
|
29,881
|
|
|
$
|
9,022
|
|
|
$
|
497
|
|
|
$
|
450
|
|
|
$
|
5,947
|
|
|
$
|
834
|
|
|
$
|
46,631
|
|
Less: Adjusted earnings allocated to participating securities
|
|
1,023
|
|
|
311
|
|
|
17
|
|
|
16
|
|
|
206
|
|
|
30
|
|
|
1,603
|
|
|||||||
Adjusted net income available to diluted common shares
|
|
$
|
28,858
|
|
|
$
|
8,711
|
|
|
$
|
480
|
|
|
$
|
434
|
|
|
$
|
5,741
|
|
|
$
|
804
|
|
|
$
|
45,028
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Diluted income per common share
|
|
$
|
1.43
|
|
|
$
|
0.44
|
|
|
$
|
0.02
|
|
|
$
|
0.02
|
|
|
$
|
0.28
|
|
|
$
|
0.04
|
|
|
$
|
2.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Effective tax rate %
|
|
36.6
|
|
|
|
|
|
|
|
|
|
|
|
|
36.0
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
SG&A as % Gross Profit:
|
|
76.1
|
|
|
|
|
|
|
|
|
|
|
|
|
72.8
|
|
||||||||||||
Operating Margin %:
|
|
2.6
|
|
|
|
|
|
|
|
|
|
|
|
|
3.5
|
|
||||||||||||
Pretax Margin %:
|
|
1.6
|
|
|
|
|
|
|
|
|
|
|
|
|
2.4
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
2017 vs. 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Same Store Finance, insurance, and other revenue, net
|
|
$
|
108,884
|
|
|
$
|
6,550
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
115,434
|
|
|
Same Store SG&A
|
|
$
|
319,775
|
|
|
$
|
(8,149
|
)
|
|
$
|
(798
|
)
|
|
(720
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
310,108
|
|
|
Same Store SG&A as % Gross Profit:
|
|
75.7
|
|
|
|
|
|
|
|
|
|
|
|
|
72.2
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Same Store income from operations
|
|
$
|
78,761
|
|
|
$
|
14,699
|
|
|
$
|
798
|
|
|
720
|
|
|
$
|
9,526
|
|
|
$
|
—
|
|
|
$
|
104,504
|
|
|
Same Store Operating Margin %:
|
|
2.7
|
|
|
|
|
|
|
|
|
|
|
|
|
3.5
|
|
|
|
U.S. Adjustments for
|
||||||||||||||||||||||||||
|
|
Nine Months Ended September 30, 2017
|
||||||||||||||||||||||||||
|
|
U.S. GAAP
|
|
Catastrophic events
|
|
Gain / loss on real estate and dealership transactions
|
|
Legal settlements
|
|
Non-cash asset impairments
|
|
Allowance for uncertain tax provisions
|
|
Non-GAAP Adjusted
|
||||||||||||||
Finance, insurance and other revenues, net
|
|
$
|
276,754
|
|
|
$
|
6,550
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
283,304
|
|
Selling, general and administrative expenses
|
|
741,904
|
|
|
$
|
(8,792
|
)
|
|
(798
|
)
|
|
$
|
1,113
|
|
|
—
|
|
|
—
|
|
|
733,427
|
|
|||||
Asset impairments
|
|
9,526
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,526
|
)
|
|
—
|
|
|
—
|
|
|||||||
Income (loss) from operations
|
|
227,333
|
|
|
15,341
|
|
|
798
|
|
|
(1,113
|
)
|
|
9,526
|
|
|
—
|
|
|
251,885
|
|
|||||||
Income (loss) before income taxes
|
|
142,808
|
|
|
15,341
|
|
|
798
|
|
|
(1,113
|
)
|
|
9,526
|
|
|
—
|
|
|
167,360
|
|
|||||||
(Provision) benefit for income taxes
|
|
(54,301
|
)
|
|
(5,926
|
)
|
|
(301
|
)
|
|
426
|
|
|
(3,579
|
)
|
|
834
|
|
|
(62,847
|
)
|
|||||||
Net income (loss)
|
|
$
|
88,507
|
|
|
$
|
9,415
|
|
|
$
|
497
|
|
|
$
|
(687
|
)
|
|
$
|
5,947
|
|
|
$
|
834
|
|
|
$
|
104,513
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
SG&A as % Gross Profit:
|
|
73.1
|
|
|
|
|
|
|
|
|
|
|
|
71.8
|
|
|||||||||||||
Operating Margin %:
|
|
3.6
|
|
|
|
|
|
|
|
|
|
|
|
3.9
|
|
|||||||||||||
Pretax Margin %:
|
|
2.2
|
|
|
|
|
|
|
|
|
|
|
|
2.6
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
2017 v. 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Same Store Finance, insurance, and other revenues, net
|
|
$
|
274,338
|
|
|
$
|
6,550
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
280,888
|
|
Same Store SG&A
|
|
$
|
735,942
|
|
|
$
|
(8,792
|
)
|
|
$
|
(798
|
)
|
|
$
|
1,113
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
727,465
|
|
Same Store SG&A as % Gross Profit:
|
|
73.1
|
|
|
|
|
|
|
|
|
|
|
|
|
71.8
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Same Store income (loss) from operations
|
|
$
|
226,326
|
|
|
$
|
15,341
|
|
|
$
|
798
|
|
|
$
|
(1,113
|
)
|
|
$
|
9,526
|
|
|
$
|
—
|
|
|
$
|
250,878
|
|
Same Store Operating Margin %:
|
|
3.6
|
|
|
|
|
|
|
|
|
|
|
|
|
3.9
|
|
|
|
|
|
U.K. Adjustments for
|
|
|||||||
|
|
Nine Months Ended September 30, 2017
|
||||||||||
|
|
U.S. GAAP
|
|
Acquisition costs
|
|
Non-GAAP Adjusted
|
||||||
Selling, general and administrative expenses
|
|
$
|
137,475
|
|
|
$
|
(288
|
)
|
|
$
|
137,187
|
|
Income from operations
|
|
21,554
|
|
|
288
|
|
|
21,842
|
|
|||
Income before income taxes
|
|
15,745
|
|
|
288
|
|
|
16,033
|
|
|||
Provision for income taxes
|
|
(2,781
|
)
|
|
—
|
|
|
(2,781
|
)
|
|||
Net income
|
|
$
|
12,964
|
|
|
$
|
288
|
|
|
$
|
13,252
|
|
|
|
|
|
|
|
|
||||||
SG&A as % Gross Profit:
|
|
83.4
|
|
|
|
|
83.2
|
|
||||
Operating Margin %:
|
|
1.5
|
|
|
|
|
1.5
|
|
||||
Pretax Margin %:
|
|
1.1
|
|
|
|
|
1.1
|
|
||||
|
|
|
|
|
|
|
||||||
2017 v. 2018
|
|
|
|
|
|
|
||||||
Same Store SG&A
|
|
$
|
132,667
|
|
|
$
|
(288
|
)
|
|
$
|
132,379
|
|
Same Store SG&A as % Gross Profit:
|
|
82.3
|
|
|
|
|
82.1
|
|
||||
|
|
|
|
|
|
|
||||||
Same Store income from operations
|
|
$
|
22,928
|
|
|
$
|
288
|
|
|
$
|
23,216
|
|
Same Store Operating Margin %:
|
|
1.6
|
|
|
|
|
1.6
|
|
|
|
|
|
Consolidated Adjustments for
|
|
|
||||||||||||||||||||||||||
|
|
Nine Months Ended September 30, 2017
|
||||||||||||||||||||||||||||||
|
|
U.S. GAAP
|
|
Catastrophic events
|
|
Gain / loss on real estate and dealership transactions
|
|
Acquisition costs
|
|
Legal settlements
(1)
|
|
Non-cash asset impairments
|
|
Allowance for uncertain tax positions
|
|
Non-GAAP Adjusted
|
||||||||||||||||
Finance, insurance, and other revenues, net
|
|
$
|
314,297
|
|
|
$
|
6,550
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
320,847
|
|
Selling, general and administrative expenses
|
|
916,674
|
|
|
(8,792
|
)
|
|
(798
|
)
|
|
(288
|
)
|
|
1,113
|
|
|
—
|
|
|
—
|
|
|
907,909
|
|
||||||||
Asset impairments
|
|
9,526
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,526
|
)
|
|
—
|
|
|
—
|
|
||||||||
Income (loss) from operations
|
|
250,876
|
|
|
15,341
|
|
|
798
|
|
|
288
|
|
|
(1,113
|
)
|
|
9,526
|
|
|
—
|
|
|
275,716
|
|
||||||||
Income (loss) before income taxes
|
|
160,029
|
|
|
15,341
|
|
|
798
|
|
|
288
|
|
|
(1,113
|
)
|
|
9,526
|
|
|
—
|
|
|
184,869
|
|
||||||||
(Provision) benefit for income taxes
|
|
(57,076
|
)
|
|
(5,926
|
)
|
|
(301
|
)
|
|
—
|
|
|
426
|
|
|
(3,579
|
)
|
|
834
|
|
|
(65,622
|
)
|
||||||||
Net income (loss)
|
|
$
|
102,953
|
|
|
$
|
9,415
|
|
|
$
|
497
|
|
|
$
|
288
|
|
|
$
|
(687
|
)
|
|
$
|
5,947
|
|
|
$
|
834
|
|
|
$
|
119,247
|
|
Less: Adjusted earnings (loss) allocated to participating securities
|
|
3,659
|
|
|
340
|
|
|
18
|
|
|
10
|
|
|
(25
|
)
|
|
215
|
|
|
31
|
|
|
4,248
|
|
||||||||
Adjusted net income (loss) available to diluted common shares
|
|
$
|
99,294
|
|
|
$
|
9,075
|
|
|
$
|
479
|
|
|
$
|
278
|
|
|
$
|
(662
|
)
|
|
$
|
5,732
|
|
|
$
|
803
|
|
|
$
|
114,999
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Diluted income (loss) per common share
|
|
$
|
4.85
|
|
|
$
|
0.44
|
|
|
$
|
0.03
|
|
|
$
|
0.02
|
|
|
$
|
(0.03
|
)
|
|
$
|
0.27
|
|
|
$
|
0.04
|
|
|
$
|
5.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Effective tax rate %
|
|
35.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35.5
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
SG&A as % Gross Profit:
|
|
75.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
74.0
|
|
||||||||||||||
Operating Margin %:
|
|
3.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.4
|
|
||||||||||||||
Pretax Margin %:
|
|
2.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.3
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
2017 v. 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Finance, insurance, and other revenues, net
|
|
$
|
310,794
|
|
|
$
|
6,550
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
317,344
|
|
Same Store SG&A
|
|
$
|
904,748
|
|
|
$
|
(8,792
|
)
|
|
$
|
(798
|
)
|
|
$
|
(288
|
)
|
|
$
|
1,113
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
895,983
|
|
Same Store SG&A as % Gross Profit:
|
|
74.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
73.8
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Same Store income (loss) from operations
|
|
$
|
251,933
|
|
|
$
|
15,341
|
|
|
$
|
798
|
|
|
$
|
288
|
|
|
$
|
(1,113
|
)
|
|
$
|
9,526
|
|
|
$
|
—
|
|
|
$
|
276,773
|
|
Same Store Operating Margin %:
|
|
3.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.4
|
|
|
|
Nine Months Ended September 30,
|
||||||||
|
|
2018
|
|
2017
|
|
% Change
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
||||
Net cash provided by operating activities
|
|
$
|
357,415
|
|
|
$
|
307,234
|
|
|
16.3
|
Change in floorplan notes payable-credit facilities, excluding floorplan offset account and net acquisition and disposition related activity
|
|
(75,308
|
)
|
|
(78,285
|
)
|
|
|
||
Change in floorplan notes payable-manufacturer affiliates associated with net acquisition and disposition related activity
|
|
(2,000
|
)
|
|
—
|
|
|
|
||
Adjusted net cash provided by operating activities
|
|
$
|
280,107
|
|
|
$
|
228,949
|
|
|
22.3
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
||||
Net cash used in investing activities
|
|
$
|
(145,472
|
)
|
|
$
|
(246,733
|
)
|
|
(41.0)
|
Change in cash paid for acquisitions, associated with floorplan notes payable
|
|
16,306
|
|
|
14,733
|
|
|
|
||
Change in proceeds from disposition of franchises, property and equipment, associated with floorplan notes payable
|
|
(24,267
|
)
|
|
—
|
|
|
|
||
Adjusted net cash used in investing activities
|
|
$
|
(153,433
|
)
|
|
$
|
(232,000
|
)
|
|
(33.9)
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
||||
Net cash used in financing activities
|
|
$
|
(204,242
|
)
|
|
$
|
(18,110
|
)
|
|
1,027.8
|
Change in net borrowings and repayments on floorplan notes payable-credit facilities, excluding net activity associated with our floorplan offset account
|
|
85,269
|
|
|
63,552
|
|
|
|
||
Adjusted net cash (used in) provided by financing activities
|
|
$
|
(118,973
|
)
|
|
$
|
45,442
|
|
|
(361.8)
|
|
|
Q3 2018
|
Q4 2018
|
2019
|
2020
|
2021
|
2022
|
2023
|
2024
|
2025
|
2026
|
2027
|
2028
|
2029
|
2030
|
||||||||||||||||||||||||||||
Weighted average notional amount in effect during the period
|
|
$
|
804
|
|
$
|
805
|
|
$
|
901
|
|
$
|
549
|
|
$
|
411
|
|
$
|
146
|
|
$
|
129
|
|
$
|
125
|
|
$
|
125
|
|
$
|
100
|
|
$
|
100
|
|
$
|
100
|
|
$
|
100
|
|
$
|
100
|
|
Weighted average interest rate during the period
|
|
2.62
|
%
|
2.61
|
%
|
2.30
|
%
|
2.21
|
%
|
1.77
|
%
|
1.78
|
%
|
1.83
|
%
|
1.81
|
%
|
1.81
|
%
|
1.85
|
%
|
1.85
|
%
|
1.85
|
%
|
1.85
|
%
|
1.85
|
%
|
Period
|
|
Total Number of Shares Purchased
|
|
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
(1)
|
||||||
|
|
|
|
|
|
|
|
(In thousands, excluding commissions)
|
||||||
July 1 - July 31, 2018
|
|
448,673
|
|
|
$
|
68.19
|
|
|
448,673
|
|
|
$
|
67,767
|
|
August 1 - August 31, 2018
|
|
108,700
|
|
|
$
|
69.93
|
|
|
108,700
|
|
|
$
|
60,166
|
|
September 1 - September 30, 2018
|
|
232,136
|
|
|
$
|
72.76
|
|
|
232,136
|
|
|
$
|
43,277
|
|
Total
|
|
789,509
|
|
|
$
|
69.77
|
|
|
789,509
|
|
|
|
|
|
|
|
|
Exhibit
Number
|
|
|
|
Description
|
|
|
|
|
|
|
—
|
|
Amended and Restated Certificate of Incorporation 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 May 22, 2015)
|
|
|
—
|
|
Third 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 April 6, 2017)
|
|
|
—
|
|
Fourth Amendment to Group 1 Automotive, Inc. Deferred Compensation Plan, as Amended and Restated, signed August 15, 2018
|
|
|
—
|
|
Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
—
|
|
Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
—
|
|
Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
—
|
|
Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
101.INS*
|
|
—
|
|
XBRL Instance Document
|
101.SCH*
|
|
—
|
|
XBRL Taxonomy Extension Schema Document
|
101.CAL*
|
|
—
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF*
|
|
—
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB*
|
|
—
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE*
|
|
—
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
*
|
|
Filed or furnished herewith
|
†
|
|
Management contract or compensatory plan or arrangement
|
|
|
|
|
|
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)
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the period ended
September 30, 2018
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, 2018
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
|