|
þ
|
ANNUAL 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
|
Delaware
|
|
76-0506313
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
800 Gessner, Suite 500
Houston, Texas 77024
(Address of principal executive
offices, including zip code)
|
|
(713) 647-5700
(Registrant’s telephone
number, including area code)
|
Title of each class
|
|
Name of exchange on which registered
|
Common stock, par value $0.01 per share
|
|
New York Stock Exchange
|
Large accelerated filer
|
þ
|
|
¨
|
Accelerated filer
|
|
|
|
|
|
Non-accelerated filer
|
¨
|
|
¨
|
Smaller reporting company
|
|
|
|
|
|
|
|
|
¨
|
Emerging growth company
|
|
|
|
Item 1.
|
||
Item 1A.
|
||
Item 1B.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
|
|
Item 5.
|
||
Item 6.
|
||
Item 7.
|
||
Item 7A.
|
||
Item 8.
|
||
Item 9.
|
||
Item 9A.
|
||
Item 9B.
|
||
|
|
|
Item 10.
|
||
Item 11.
|
||
Item 12.
|
||
Item 13.
|
||
Item 14.
|
||
|
|
|
Item 15.
|
||
Item 16.
|
||
•
|
our future operating performance;
|
•
|
our ability to maintain or improve our margins;
|
•
|
operating cash flows and availability of capital;
|
•
|
the completion of future acquisitions and divestitures;
|
•
|
the future revenues of acquired dealerships;
|
•
|
future stock repurchases, refinancing of debt, and dividends;
|
•
|
future capital expenditures;
|
•
|
changes in sales volumes and availability of credit for customer financing in new and used vehicles and sales volumes in the parts and service markets;
|
•
|
business trends in the retail automotive industry, including the level of manufacturer incentives, new and used vehicle retail sales volume, customer demand, interest rates and changes in industry-wide inventory levels;
|
•
|
changes in regulatory practices, tariffs and taxes, including Brexit; and
|
•
|
availability of financing for inventory, working capital, real estate and capital expenditures.
|
•
|
sustained growth of our higher margin parts and service business. Our focus on growth in our parts and service operations continues to hinge on the retention and expansion of our service professionals, targeted marketing efforts, strategic selling and operational efficiencies, as well as capital investments designed to support our growth targets;
|
•
|
promotion of the customer experience and customer satisfaction, in all areas of our business; and
|
•
|
improvement of operating efficiencies, through further development of our operating model that promotes commonality of processes, systems and training, to further leverage our cost base. We made significant changes in our operating model during the last
five
years, which were designed to reduce variable and fixed expenses. And, we continue our efforts to fully leverage our scale, reduce costs, enhance internal controls, and enable further growth. As our business grows in
2019
and beyond, we intend to manage our costs carefully and to look for additional opportunities to improve our processes and disseminate best practices. We believe that our management structure supports more rapid decision making and facilitates an efficient and effective roll-out of new processes.
|
Region
|
|
Geographic Market
|
|
Percentage of Our New Vehicle Retail Units Sold During the Year Ended December 31, 2018
|
|
As of December 31, 2018
|
|||||
Number of
Dealerships
|
|
Number of
Franchises
|
|||||||||
United States
|
|
Texas
|
|
36.4
|
%
|
|
56
|
|
|
74
|
|
|
|
Oklahoma
|
|
6.3
|
|
|
13
|
|
|
20
|
|
|
|
California
|
|
6.2
|
|
|
5
|
|
|
9
|
|
|
|
Massachusetts
|
|
4.9
|
|
|
5
|
|
|
5
|
|
|
|
Georgia
|
|
4.5
|
|
|
7
|
|
|
9
|
|
|
|
Florida
|
|
2.7
|
|
|
4
|
|
|
4
|
|
|
|
Louisiana
|
|
2.1
|
|
|
5
|
|
|
7
|
|
|
|
New Hampshire
|
|
1.8
|
|
|
3
|
|
|
3
|
|
|
|
South Carolina
|
|
1.6
|
|
|
3
|
|
|
3
|
|
|
|
New Jersey
|
|
1.6
|
|
|
4
|
|
|
4
|
|
|
|
Kansas
|
|
1.4
|
|
|
4
|
|
|
4
|
|
|
|
Mississippi
|
|
1.2
|
|
|
3
|
|
|
3
|
|
|
|
Alabama
|
|
0.7
|
|
|
2
|
|
|
2
|
|
|
|
Maryland
|
|
0.5
|
|
|
2
|
|
|
2
|
|
|
|
New Mexico
|
|
0.2
|
|
|
2
|
|
|
3
|
|
|
|
|
|
72.1
|
|
|
118
|
|
|
152
|
|
International
|
|
United Kingdom
|
|
22.7
|
|
|
47
|
|
|
63
|
|
|
|
Brazil
|
|
5.2
|
|
|
18
|
|
|
23
|
|
Total
|
|
|
|
100.0
|
%
|
|
183
|
|
|
238
|
|
•
|
manufacturer dealer incentives;
|
•
|
the resale of any used vehicle trade-in purchased by the dealership;
|
•
|
arrangement of third-party financing in connection with the retail sale;
|
•
|
the sale of vehicle service and insurance contracts;
|
•
|
the sale of vehicle parts, accessories or other after-market products; and
|
•
|
the service and repair of the vehicle both during and after the warranty period.
|
|
|
New Vehicle
Revenues
|
|
New Vehicle
Unit Sales
|
|
% of Total
Units Sold
|
|
Franchises Owned
|
|||||
|
|
(In thousands)
|
|
|
|
|
|
|
|||||
Toyota
|
|
$
|
1,104,381
|
|
|
36,687
|
|
|
21.5
|
%
|
|
19
|
|
BMW
|
|
744,436
|
|
|
15,881
|
|
|
9.3
|
%
|
|
27
|
|
|
Ford
|
|
693,030
|
|
|
18,361
|
|
|
10.8
|
%
|
|
18
|
|
|
Audi
|
|
599,885
|
|
|
15,402
|
|
|
9.0
|
%
|
|
14
|
|
|
Mercedes-Benz
|
|
418,784
|
|
|
7,692
|
|
|
4.5
|
%
|
|
12
|
|
|
Honda
|
|
382,597
|
|
|
13,796
|
|
|
8.1
|
%
|
|
13
|
|
|
Nissan
|
|
327,929
|
|
|
11,085
|
|
|
6.5
|
%
|
|
9
|
|
|
Lexus
|
|
317,914
|
|
|
6,345
|
|
|
3.7
|
%
|
|
4
|
|
|
Chevrolet
|
|
254,984
|
|
|
6,376
|
|
|
3.7
|
%
|
|
6
|
|
|
Volkswagen
|
|
146,640
|
|
|
5,572
|
|
|
3.3
|
%
|
|
12
|
|
|
Land Rover
|
|
137,619
|
|
|
2,146
|
|
|
1.3
|
%
|
|
8
|
|
|
MINI
|
|
124,866
|
|
|
4,653
|
|
|
2.7
|
%
|
|
18
|
|
|
Jeep
|
|
113,189
|
|
|
3,132
|
|
|
1.8
|
%
|
|
6
|
|
|
Acura
|
|
108,713
|
|
|
2,673
|
|
|
1.6
|
%
|
|
5
|
|
|
GMC
|
|
108,498
|
|
|
2,168
|
|
|
1.3
|
%
|
|
5
|
|
|
RAM
|
|
98,520
|
|
|
2,095
|
|
|
1.2
|
%
|
|
6
|
|
|
Kia
|
|
85,318
|
|
|
3,468
|
|
|
2.0
|
%
|
|
5
|
|
|
Hyundai
|
|
79,982
|
|
|
3,118
|
|
|
1.8
|
%
|
|
5
|
|
|
Cadillac
|
|
67,291
|
|
|
1,175
|
|
|
0.7
|
%
|
|
2
|
|
|
Subaru
|
|
66,774
|
|
|
2,231
|
|
|
1.3
|
%
|
|
3
|
|
|
Jaguar
|
|
52,473
|
|
|
1,003
|
|
|
0.6
|
%
|
|
7
|
|
|
Dodge
|
|
41,836
|
|
|
1,143
|
|
|
0.7
|
%
|
|
6
|
|
|
Buick
|
|
21,725
|
|
|
624
|
|
|
0.4
|
%
|
|
5
|
|
|
Sprinter
|
|
18,150
|
|
|
393
|
|
|
0.2
|
%
|
|
5
|
|
|
Chrysler
|
|
16,955
|
|
|
396
|
|
|
0.2
|
%
|
|
6
|
|
|
SEAT
|
|
12,485
|
|
|
1,631
|
|
|
1.0
|
%
|
|
1
|
|
|
Lincoln
|
|
11,153
|
|
|
197
|
|
|
0.1
|
%
|
|
3
|
|
|
Mazda
|
|
10,830
|
|
|
378
|
|
|
0.2
|
%
|
|
1
|
|
|
SKODA
|
|
7,039
|
|
|
300
|
|
|
0.2
|
%
|
|
2
|
|
|
Vauxhall
|
|
3,968
|
|
|
209
|
|
|
0.1
|
%
|
|
—
|
|
|
Smart
|
|
2,246
|
|
|
162
|
|
|
0.1
|
%
|
|
5
|
|
|
Volvo
|
|
1,161
|
|
|
25
|
|
|
—
|
%
|
|
—
|
|
|
Total
|
|
$
|
6,181,371
|
|
|
170,517
|
|
|
100.0
|
%
|
|
238
|
|
|
For the Years Ended December 31,
|
||||||||||||||||
|
2018
|
|
% of
Total
|
|
2017
|
|
% of
Total
|
|
2016
|
|
% of
Total
|
||||||
Toyota/Lexus
|
43,032
|
|
|
25.2
|
%
|
|
43,557
|
|
|
25.3
|
%
|
|
42,922
|
|
|
24.9
|
%
|
Volkswagen/Audi/Porsche/SEAT/SKODA
|
22,905
|
|
|
13.4
|
|
|
23,686
|
|
|
13.8
|
|
|
20,219
|
|
|
11.8
|
|
BMW/MINI
|
20,534
|
|
|
12.0
|
|
|
21,903
|
|
|
12.7
|
|
|
23,305
|
|
|
13.5
|
|
Ford/Lincoln
|
18,558
|
|
|
10.9
|
|
|
19,733
|
|
|
11.5
|
|
|
18,925
|
|
|
11.0
|
|
Honda/Acura
|
16,469
|
|
|
9.7
|
|
|
15,882
|
|
|
9.2
|
|
|
17,031
|
|
|
9.9
|
|
Nissan
|
11,085
|
|
|
6.5
|
|
|
12,729
|
|
|
7.4
|
|
|
12,256
|
|
|
7.1
|
|
Chevrolet/GMC/Buick/Cadillac
|
10,343
|
|
|
6.1
|
|
|
10,713
|
|
|
6.2
|
|
|
12,811
|
|
|
7.4
|
|
Mercedes-Benz/Smart/Sprinter
|
8,247
|
|
|
4.8
|
|
|
6,809
|
|
|
4.0
|
|
|
7,349
|
|
|
4.3
|
|
Chrysler/Dodge/Jeep/RAM
|
6,766
|
|
|
4.0
|
|
|
6,692
|
|
|
3.9
|
|
|
6,801
|
|
|
4.0
|
|
Hyundai/Kia
|
6,586
|
|
|
3.9
|
|
|
6,799
|
|
|
3.9
|
|
|
7,256
|
|
|
4.2
|
|
Jaguar/Land Rover
|
3,149
|
|
|
1.9
|
|
|
1,692
|
|
|
0.9
|
|
|
798
|
|
|
0.5
|
|
Other
|
2,843
|
|
|
1.6
|
|
|
2,005
|
|
|
1.2
|
|
|
2,380
|
|
|
1.4
|
|
Total
|
170,517
|
|
|
100.0
|
%
|
|
172,200
|
|
|
100.0
|
%
|
|
172,053
|
|
|
100.0
|
%
|
•
|
Invest in the Recruiting, Training and Retaining of Qualified Service Professionals.
We are developing and implementing programs designed to more effectively identify and recruit service professionals, onboard and train these service professionals and improve our retention of these service professionals. We believe such efforts will improve customer satisfaction, reduce costs and allow us to grow our parts and service business.
|
•
|
Focus on Customer Relationships; Emphasize Preventative Maintenance.
Our dealerships seek to retain customers of our new and used vehicles as ongoing clients of our parts and service departments. To accomplish this goal, we use computer systems that track the vehicle owners’ maintenance records and provide advance notice to them when their vehicles are due for periodic service. Our use of computer-based customer relationship management tools increases the reach and effectiveness of our marketing efforts, allowing us to target our promotional offerings to areas in which service capacity is under-utilized or profit margins are greatest. We continue to train our service professionals to establish relationships with their service clients to promote a long-term business relationship. And, we are focused on enhancing access to our service facilities by providing patrons with readily-accessible means to schedule service appointments. We believe our parts and service activities are an integral part of the customer service experience, allowing us to maintain ongoing relationships with our dealerships’ clients and, thereby, deepening customer loyalty to the dealership as a whole.
|
•
|
Sell Vehicle Service Contracts in Conjunction with Vehicle Sales.
Our finance and insurance sales departments attempt to connect new and used vehicle customers with vehicle service contracts, and thereby enhance repeat customer business for our parts and service departments.
|
•
|
Efficient Management of Parts Inventory.
Our dealerships’ parts departments support their vehicle sales and service departments, selling factory-approved parts for the respective vehicle makes and models. Parts are either used in repairs made in the service department, sold at retail to customers, or sold at wholesale to independent repair shops and other franchised dealerships. Our dealerships also frequently share parts with each other. Our dealerships employ parts managers who oversee parts inventories and sales. Software programs are used to monitor parts inventory, maximize sales, avoid obsolete and unused parts, and make the best use of manufacturer return procedures.
|
•
|
Expansion of Collision Center Operations
. We plan to continue to grow our collision center operations. Expansion in this segment of the business is not restricted by franchise agreements or manufacturer relationships. We believe that our concentration of dealership operations in certain of the markets in which we currently operate significantly enhances the profit model opportunities for our collision center operations.
|
•
|
extended warranties;
|
•
|
maintenance, or vehicle service, products and programs;
|
•
|
guaranteed asset protection insurance, which covers the shortfall between a customer’s contract balance and insurance payoff in the event of a total vehicle loss; and
|
•
|
lease “wear and tear” insurance.
|
•
|
Continue to enhance our product offerings.
We are constantly evaluating the mix of insurance products that we offer our customers to ensure that their needs are met. In addition, we regularly work with our current and prospective insurance product providers to assess new product offerings and match them with changing markets and customer demand. Further, we routinely consider our relationships with finance company and insurance product providers, as well as our marketing and other strategies to expand the accessibility and affordability of our product offerings to more of our clients.
|
•
|
Improve our processes within the dealership.
We routinely consider software and other technological improvements that can make the process by which a customer finances a vehicle purchase and/or purchases an insurance product
|
•
|
enhance brand and geographic diversity with primary focus on import and luxury brands;
|
•
|
expand into geographic areas we currently do not serve;
|
•
|
expand our brand, product, and service offerings in our existing markets;
|
•
|
capitalize on economies of scale and cost savings opportunities in our existing markets in areas such as used vehicle sourcing, advertising, purchasing, data processing, personnel utilization, and the cost of floorplan financing, thereby, increasing operating efficiency.
|
•
|
the rate of return on our capital investment over a period of time;
|
•
|
location of the dealership in relation to existing markets and our ability to leverage our cost structure;
|
•
|
potential future capital investment requirements;
|
•
|
the brand; and
|
•
|
existing real estate obligations, coupled with our ability to exit those obligations or identify an alternate use for real estate.
|
•
|
inventory levels;
|
•
|
working capital levels;
|
•
|
the sales process;
|
•
|
minimum sales performance requirements;
|
•
|
customer satisfaction standards;
|
•
|
marketing and branding;
|
•
|
facility standards and signage;
|
•
|
personnel;
|
•
|
changes in management;
|
•
|
change in control; and
|
•
|
monthly financial reporting.
|
Manufacturer
|
Percentage of New Vehicle Retail Units Sold during the Year Ended December 31, 2018
|
Toyota
|
25.2%
|
Volkswagen
|
13.4%
|
BMW
|
12.0%
|
Ford
|
10.9%
|
Honda
|
9.7%
|
•
|
claims by employees, customers or other third parties for personal injury or property damage resulting from our operations;
|
•
|
weather events, such as hail, tornadoes and hurricanes; and
|
•
|
potential fines and civil and criminal penalties resulting from alleged violations of federal and state laws or regulatory requirements.
|
•
|
1,796 were employed in managerial positions;
|
•
|
3,658 were employed in non-managerial vehicle sales department positions;
|
•
|
6,848 were employed in non-managerial parts and service department positions; and
|
•
|
2,268 were employed in administrative support positions.
|
•
|
Annual Report on Form 10-K;
|
•
|
Quarterly Reports on Form 10-Q;
|
•
|
Current Reports on Form 8-K;
|
•
|
Amendments to the reports filed or furnished electronically with the Securities and Exchange Commission (“SEC”) pursuant to Section 13(a) or 15(d) of the Exchange Act;
|
•
|
Our Corporate Governance Guidelines;
|
•
|
The charters for our Audit, Compensation, Finance/Risk Management and Nominating/Governance Committees;
|
•
|
Our Code of Conduct for Directors, Officers and Employees (“Code of Conduct”); and
|
•
|
Our Code of Ethics for our Chief Executive Officer, Chief Financial Officer and Controller (“Code of Ethics”).
|
•
|
incurring significantly higher capital expenditures and operating expenses;
|
•
|
failing to integrate the operations and personnel of the acquired dealerships;
|
•
|
entering new markets with which we are not familiar;
|
•
|
incurring undiscovered liabilities at acquired dealerships, generally, in the case of stock acquisitions;
|
•
|
disrupting our ongoing business;
|
•
|
failing to retain key personnel of the acquired dealerships;
|
•
|
impairing relationships with employees, manufacturers and customers; and
|
•
|
incorrectly valuing acquired entities.
|
•
|
franchised automotive dealerships in our markets that sell the same or similar makes of new and used vehicles that we offer, occasionally at lower prices than we do;
|
•
|
other national or regional affiliated groups of franchised dealerships and/or of used vehicle dealerships;
|
•
|
private market buyers and sellers of used vehicles;
|
•
|
internet-based vehicle brokers that sell vehicles obtained from franchised dealers directly to consumers;
|
•
|
auto parts retailers;
|
•
|
local, regional and national collision centers;
|
•
|
service center chain stores; and
|
•
|
independent service and repair shops.
|
•
|
our ability to obtain additional financing for acquisitions, capital expenditures, working capital or general corporate purposes may be impaired in the future;
|
•
|
a portion of our current cash flow from operations must be dedicated to the payment of principal and interest on our indebtedness, thereby reducing the funds available to us for our operations and other corporate purposes;
|
•
|
some of our borrowings are and will continue to be at variable rates of interest, which exposes us to the risk of increasing interest rates;
|
•
|
we may be more leveraged than some of our competitors, which may place us at a relative competitive disadvantage and make us more vulnerable to changing market conditions and regulations; and
|
•
|
during periods of economic downturn, we may be more susceptible to a breach of our debt covenants and default on our indebtedness.
|
•
|
exposure to local economic conditions;
|
•
|
wage inflation in emerging markets;
|
•
|
social plans that prohibit or increase the cost of certain restructuring actions;
|
•
|
increases in working capital requirements related to long supply chains or regional terms of business;
|
•
|
currency exchange controls;
|
•
|
exposure to currency exchange rate fluctuations;
|
•
|
variations in protection of legal rights;
|
•
|
import or export licensing requirements;
|
•
|
the difficulty of enforcing agreements and collecting receivables through certain foreign legal systems;
|
•
|
restrictions on transfer or repatriation of funds and trade protection matters, including antidumping duties, tariffs, embargoes and other laws and regulations creating tax inefficiencies and prohibitions or restrictions on acquisitions or joint ventures;
|
•
|
increased risk of corruption;
|
•
|
changes in laws and regulations, including the laws and policies of the U.S. affecting trade and foreign investment;
|
•
|
more expansive legal rights of foreign labor unions;
|
•
|
the potential for nationalization of enterprises;
|
•
|
exposure to local public health concerns and the resultant impact on economic and political conditions;
|
•
|
transparency issues in general and, more specifically, the U.S. Foreign Corrupt Practices Act of 1974, as amended (the “FCPA”), the U.K. Bribery Act, and other anti-corruption compliance laws and issues;
|
•
|
unsettled social and political conditions, in general, and possible terrorist attacks, drug cartel related violence or acts of war, civil unrest, expansion of hostilities and other political risks; and
|
•
|
lack of franchise protection, which creates greater competition.
|
•
|
the removal of a non-employee director from office, except for cause;
|
•
|
any one person or entity, who in the opinion of the manufacturer is unqualified to own its franchised dealership or has interests incompatible with the manufacturer, from acquiring more than a specified percentage of our common stock (ranging from 20% to 50% depending on the particular manufacturer’s restrictions) and this trigger level can fall to as low as 5% if another vehicle manufacturer is the entity acquiring the ownership interest or voting rights;
|
•
|
certain material changes in our business or extraordinary corporate transactions, such as a merger or sale of a material amount of our assets;
|
•
|
the removal of a dealership general manager without the consent of the manufacturer; and
|
•
|
a change in control of our Board of Directors or a change in management.
|
•
|
allowing only the Board of Directors to set the number of non-employee directors;
|
•
|
requiring super-majority or class voting to affect certain amendments to our certificate of incorporation and bylaws;
|
•
|
limiting the persons who may call special stockholders’ meetings;
|
•
|
limiting stockholder action by written consent; and
|
•
|
establishing advance notice requirements for nominations for election to the Board of Directors or for proposing matters that can be acted upon at stockholders’ meetings.
|
|
|
|
|
Dealerships
|
||||
Region
|
|
Geographic Location
|
|
Owned
|
|
Leased
|
||
United States
|
|
Texas
|
|
31
|
|
|
26
|
|
|
|
Oklahoma
|
|
8
|
|
|
5
|
|
|
|
Georgia
|
|
6
|
|
|
—
|
|
|
|
Massachusetts
|
|
4
|
|
|
1
|
|
|
|
New Jersey
|
|
4
|
|
|
—
|
|
|
|
Florida
|
|
4
|
|
|
—
|
|
|
|
Kansas
|
|
4
|
|
|
—
|
|
|
|
Mississippi
|
|
3
|
|
|
—
|
|
|
|
South Carolina
|
|
3
|
|
|
—
|
|
|
|
New Mexico
|
|
2
|
|
|
—
|
|
|
|
Maryland
|
|
2
|
|
|
—
|
|
|
|
New Hampshire
|
|
2
|
|
|
1
|
|
|
|
California
|
|
—
|
|
|
5
|
|
|
|
Louisiana
|
|
3
|
|
|
2
|
|
|
|
Alabama
|
|
1
|
|
|
1
|
|
|
|
|
|
77
|
|
|
41
|
|
International
|
|
United Kingdom
|
|
20
|
|
|
27
|
|
|
|
Brazil
|
|
4
|
|
|
14
|
|
Total
|
|
|
|
101
|
|
|
82
|
|
Measurement Date
|
|
Group 1
Automotive, Inc.
|
|
S&P 500
|
|
Peer Group
|
December 2013
|
|
$100.00
|
|
$100.00
|
|
$100.00
|
December 2014
|
|
127.32
|
|
113.69
|
|
118.87
|
December 2015
|
|
108.61
|
|
115.26
|
|
114.43
|
December 2016
|
|
113.49
|
|
129.05
|
|
111.10
|
December 2017
|
|
104.82
|
|
157.22
|
|
112.72
|
December 2018
|
|
79.08
|
|
150.33
|
|
87.72
|
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 (In thousands, excluding commissions)
(1)
|
|||||
October 1 - October 25, 2018
(2)
|
|
399,872
|
|
|
$
|
62.52
|
|
|
399,872
|
|
$
|
18,277
|
|
October 26 - October 31, 2018
|
|
42,700
|
|
|
$
|
57.53
|
|
|
42,700
|
|
$
|
97,543
|
|
November 1 - November 30, 2018
|
|
580,099
|
|
|
$
|
56.52
|
|
|
580,099
|
|
$
|
64,753
|
|
December 1 - December 31, 2018
|
|
291,115
|
|
|
$
|
51.69
|
|
|
291,115
|
|
$
|
49,706
|
|
Total
|
|
1,313,786
|
|
$
|
57.31
|
|
|
1,313,786
|
|
|
|
|
Years Ended December 31,
|
||||||||||||||||||
|
|
2018
(4)
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
|
|
|
|
(In thousands, except per share amounts)
|
|
|
||||||||||||||
Income Statement Data:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
|
$
|
11,601,358
|
|
|
$
|
11,123,721
|
|
|
$
|
10,887,612
|
|
|
$
|
10,632,505
|
|
|
$
|
9,937,889
|
|
Cost of sales
|
|
9,876,265
|
|
|
9,478,212
|
|
|
9,292,543
|
|
|
9,098,533
|
|
|
8,489,951
|
|
|||||
Gross profit
|
|
1,725,093
|
|
|
1,645,509
|
|
|
1,595,069
|
|
|
1,533,972
|
|
|
1,447,938
|
|
|||||
Selling, general and administrative expenses
|
|
1,273,057
|
|
|
1,226,195
|
|
|
1,170,763
|
|
|
1,120,833
|
|
|
1,061,964
|
|
|||||
Depreciation and amortization expense
|
|
67,070
|
|
|
57,936
|
|
|
51,234
|
|
|
47,239
|
|
|
42,344
|
|
|||||
Asset impairments
|
|
43,883
|
|
|
19,506
|
|
|
32,838
|
|
|
87,562
|
|
|
41,520
|
|
|||||
Income from operations
|
|
341,083
|
|
|
341,872
|
|
|
340,234
|
|
|
278,338
|
|
|
302,110
|
|
|||||
Other expense:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Floorplan interest expense
|
|
(59,882
|
)
|
|
(52,372
|
)
|
|
(44,927
|
)
|
|
(39,264
|
)
|
|
(41,614
|
)
|
|||||
Other interest expense, net
|
|
(75,798
|
)
|
|
(70,497
|
)
|
|
(67,936
|
)
|
|
(56,903
|
)
|
|
(49,693
|
)
|
|||||
Loss on extinguishment of long-term debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(46,403
|
)
|
|||||
Income from continuing operations before income taxes
|
|
205,403
|
|
|
219,003
|
|
|
227,371
|
|
|
182,171
|
|
|
164,400
|
|
|||||
Provision for income taxes
|
|
(47,631
|
)
|
|
(5,561
|
)
|
|
(80,306
|
)
|
|
(88,172
|
)
|
|
(71,396
|
)
|
|||||
Net income
|
|
$
|
157,772
|
|
|
$
|
213,442
|
|
|
$
|
147,065
|
|
|
$
|
93,999
|
|
|
$
|
93,004
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
|
$
|
7.83
|
|
|
$
|
10.08
|
|
|
$
|
6.67
|
|
|
$
|
3.91
|
|
|
$
|
3.82
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
|
$
|
7.83
|
|
|
$
|
10.08
|
|
|
$
|
6.67
|
|
|
$
|
3.90
|
|
|
$
|
3.60
|
|
Dividends per share
|
|
$
|
1.04
|
|
|
$
|
0.97
|
|
|
$
|
0.91
|
|
|
$
|
0.83
|
|
|
$
|
0.70
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
19,453
|
|
|
20,420
|
|
|
21,161
|
|
|
23,148
|
|
|
23,380
|
|
|||||
Diluted
|
|
19,461
|
|
|
20,425
|
|
|
21,170
|
|
|
23,152
|
|
|
24,885
|
|
|
|
As of December 31,
|
||||||||||||||||||
|
|
2018
(4)
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
|
|
|
|
(Dollars in thousands)
|
|
|
||||||||||||||
Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Working capital
|
|
$
|
15,801
|
|
|
$
|
130,699
|
|
|
$
|
97,470
|
|
|
$
|
149,102
|
|
|
$
|
101,958
|
|
Inventories
|
|
1,844,059
|
|
|
1,763,293
|
|
|
1,651,815
|
|
|
1,737,751
|
|
|
1,556,705
|
|
|||||
Total assets
|
|
5,001,075
|
|
|
4,871,065
|
|
|
4,461,903
|
|
|
4,396,716
|
|
|
4,127,198
|
|
|||||
Floorplan notes payable — credit facility and other
(1)
|
|
1,258,815
|
|
|
1,154,148
|
|
|
1,077,028
|
|
|
1,154,960
|
|
|
1,103,630
|
|
|||||
Floorplan notes payable — manufacturer affiliates
(2)
|
|
417,824
|
|
|
374,683
|
|
|
367,161
|
|
|
363,571
|
|
|
285,156
|
|
|||||
Long-term debt, including current portion
(3)
|
|
1,366,167
|
|
|
1,357,712
|
|
|
1,269,027
|
|
|
1,251,555
|
|
|
1,078,235
|
|
|||||
Stockholders’ equity
|
|
$
|
1,095,694
|
|
|
$
|
1,124,282
|
|
|
$
|
930,200
|
|
|
$
|
918,252
|
|
|
$
|
978,010
|
|
Long-term debt to capitalization
|
|
55
|
%
|
|
55
|
%
|
|
58
|
%
|
|
58
|
%
|
|
52
|
%
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Unit Sales
|
|
|
|
|
|
|
||||||
Retail Sales
|
|
|
|
|
|
|
||||||
New Vehicle
|
|
170,517
|
|
|
172,200
|
|
|
172,053
|
|
|||
Used Vehicle
|
|
147,999
|
|
|
129,933
|
|
|
129,131
|
|
|||
Total Retail Sales
|
|
318,516
|
|
|
302,133
|
|
|
301,184
|
|
|||
Wholesale Sales
|
|
53,887
|
|
|
57,144
|
|
|
57,339
|
|
|||
Total Vehicle Sales
|
|
372,403
|
|
|
359,277
|
|
|
358,523
|
|
|||
Gross Margin
|
|
|
|
|
|
|
||||||
New Vehicle Retail Sales
|
|
5.0
|
%
|
|
5.2
|
%
|
|
5.2
|
%
|
|||
Total Used Vehicle Sales
|
|
5.3
|
%
|
|
5.5
|
%
|
|
5.6
|
%
|
|||
Parts and Service Sales
|
|
53.6
|
%
|
|
53.8
|
%
|
|
53.9
|
%
|
|||
Total Gross Margin
|
|
14.9
|
%
|
|
14.8
|
%
|
|
14.7
|
%
|
|||
Adjusted Total Gross Margin
(1)
|
|
14.9
|
%
|
|
14.8
|
%
|
|
14.7
|
%
|
|||
SG&A as a % of Gross Profit
|
|
73.8
|
%
|
|
74.5
|
%
|
|
73.4
|
%
|
|||
Adjusted SG&A as a % of Gross Profit
(1)
|
|
74.6
|
%
|
|
73.7
|
%
|
|
73.7
|
%
|
|||
Operating Margin
|
|
2.9
|
%
|
|
3.1
|
%
|
|
3.1
|
%
|
|||
Adjusted Operating Margin
(1)
|
|
3.2
|
%
|
|
3.4
|
%
|
|
3.4
|
%
|
|||
Pretax Margin
|
|
1.8
|
%
|
|
2.0
|
%
|
|
2.1
|
%
|
|||
Adjusted Pretax Margin
(1)
|
|
2.0
|
%
|
|
2.3
|
%
|
|
2.3
|
%
|
|||
Finance and Insurance Revenues per Retail Unit Sold
|
|
$
|
1,468
|
|
|
$
|
1,420
|
|
|
$
|
1,397
|
|
Adjusted Finance and Insurance Revenues per Retail Unit Sold
(1)
|
|
$
|
1,464
|
|
|
$
|
1,442
|
|
|
$
|
1,397
|
|
(1)
See “Non-GAAP Financial Measures” for more details.
|
|
|
|
|
|
|
•
|
Non-cash Asset Impairments:
Due to our determination that the fair value of indefinite-lived intangible franchise rights related to certain of our franchises did not exceed their carrying value, we recorded a $38.7 million pretax non-cash impairment charge, of which $38.2 million related to intangible franchise rights in our U.S. reporting unit and $0.5 million related to intangible franchise rights in our U.K. reporting unit. In addition, primarily in conjunction with dealership disposition activity, an additional $5.1 million of non-cash asset impairments were recognized, related to real estate and other long-term assets.
|
•
|
Real Estate and Dealership Transactions:
We disposed of six franchises: four in the U.S. segment and two in the U.K. segment. Primarily as a result of these dispositions, a net pre-tax gain of $25.2 million was recognized for the year ended December 31, 2018.
|
•
|
Catastrophic Events:
Our results were negatively impacted by several catastrophic events. Insurance deductibles and other related expenses totaling $5.3 million were recognized as SG&A expenses primarily as a result of vehicle damages from hailstorms in the U.S. during the year.
|
•
|
Settlement:
We recognized a net pre-tax loss of $5.0 million associated with legal settlements in our U.S. and Brazil segments.
|
•
|
Non-cash Asset Impairments:
Due to our determination that the fair value of indefinite-lived intangible franchise rights related to certain of our franchises did not exceed their carrying value, we recorded a $19.3 million pretax non-cash impairment charge, of which $12.6 million related to intangible franchise rights in our U.S. reporting unit and $6.7 million related to intangible franchise rights in our Brazil reporting unit.
|
•
|
Catastrophic Events:
Our results were negatively impacted by several catastrophic events. Most significantly, insurance deductibles and other related expenses totaling $8.8 million were recognized as SG&A expenses and $6.6 million of chargeback expense reserves associated with finance and insurance revenues were recognized, as a result of vehicle and property damage suffered from Hurricanes Harvey and Irma in the U.S.
|
•
|
OEM Settlement:
We recognized a net pretax gain of $1.1 million associated with the Audi diesel emissions claims settlement, in connection with our ownership of Audi dealerships in the U.S.
|
•
|
Tax Rate Changes:
We recognized a tax benefit of $73.0 million based upon the re-measurement of net deferred tax liabilities associated with the reduction in the corporate income tax rate enacted by the U.S. government, commonly referred to as the Tax Act.
|
•
|
Non-cash Asset Impairments:
Due to our determination that the fair value of indefinite-lived intangible franchise rights related to certain of our franchises did not exceed their carrying value, we recorded a $30.0 million pretax non-cash impairment charge, of which $19.9 million related to intangible franchise rights in our two U.S. reporting units and $10.1 million related to intangible franchise rights in our Brazil reporting unit. We also recognized a total of $2.8 million in pre-tax non-cash asset impairment charges related to impairment of various real estate holdings and other long-lived assets.
|
•
|
Catastrophic Events:
Our results were negatively impacted by several catastrophic events. Insurance deductibles and other related expenses totaling $5.9 million were recognized as SG&A expenses as a result of vehicle damage from hailstorms and flooding in the U.S., during the year.
|
•
|
Real Estate and Dealership Transactions:
We disposed of ten franchises: five in the U.S. segment, four in the Brazil segment and one in the U.K. segment. Primarily as a result of these dispositions, a net pre-tax gain of $2.7 million and net pre-tax losses of $0.8 million and $0.3 million, respectively, were recognized for the year ended December 31, 2016.
|
•
|
OEM Settlement:
We recognized a net pre-tax gain of $11.7 million associated with the Volkswagen diesel emissions claims settlement, in connection with our ownership of Volkswagen dealerships in the U.S.
|
•
|
Severance Costs:
Negatively impacting our results was $2.0 million of severance costs paid to employees.
|
•
|
Foreign deferred income tax benefit:
We recognized a tax benefit of $1.7 million associated with a dealership disposition in Brazil.
|
|
|
For The Years Ended December 31,
|
||||||||||||||||||||||||||
|
|
2018
|
|
% Increase/(Decrease)
|
|
Constant Currency % Increase/(Decrease)
|
|
2017
|
|
2017
|
|
% Increase/(Decrease)
|
|
Constant Currency % Increase/(Decrease)
|
|
2016
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
New vehicle retail
|
|
$
|
5,823,673
|
|
|
(4.4
|
)%
|
|
(4.3
|
)%
|
|
$
|
6,089,164
|
|
|
$
|
5,962,549
|
|
|
0.2
|
%
|
|
0.6
|
%
|
|
$
|
5,951,471
|
|
Used vehicle retail
|
|
2,952,738
|
|
|
6.8
|
%
|
|
6.5
|
%
|
|
2,763,994
|
|
|
2,680,878
|
|
|
(1.1
|
)%
|
|
(0.5
|
)%
|
|
2,709,721
|
|
||||
Used vehicle wholesale
|
|
334,712
|
|
|
(15.0
|
)%
|
|
(15.6
|
)%
|
|
393,973
|
|
|
374,148
|
|
|
(4.6
|
)%
|
|
(3.3
|
)%
|
|
392,071
|
|
||||
Parts and service
|
|
1,359,516
|
|
|
2.8
|
%
|
|
2.8
|
%
|
|
1,322,600
|
|
|
1,302,836
|
|
|
5.1
|
%
|
|
5.3
|
%
|
|
1,239,888
|
|
||||
Finance, insurance and other
|
|
446,148
|
|
|
5.3
|
%
|
|
5.3
|
%
|
|
423,801
|
|
|
417,905
|
|
|
0.9
|
%
|
|
1.2
|
%
|
|
414,015
|
|
||||
Total revenues
|
|
$
|
10,916,787
|
|
|
(0.7
|
)%
|
|
(0.8
|
)%
|
|
$
|
10,993,532
|
|
|
$
|
10,738,316
|
|
|
0.3
|
%
|
|
0.7
|
%
|
|
$
|
10,707,166
|
|
Cost of Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
New vehicle retail
|
|
$
|
5,528,255
|
|
|
(4.2
|
)%
|
|
(4.2
|
)%
|
|
$
|
5,770,952
|
|
|
$
|
5,650,624
|
|
|
0.2
|
%
|
|
0.6
|
%
|
|
$
|
5,639,370
|
|
Used vehicle retail
|
|
2,778,476
|
|
|
7.4
|
%
|
|
7.1
|
%
|
|
2,587,927
|
|
|
2,508,555
|
|
|
(0.8
|
)%
|
|
(0.2
|
)%
|
|
2,529,927
|
|
||||
Used vehicle wholesale
|
|
332,282
|
|
|
(16.2
|
)%
|
|
(16.8
|
)%
|
|
396,616
|
|
|
376,593
|
|
|
(4.9
|
)%
|
|
(3.7
|
)%
|
|
395,967
|
|
||||
Parts and service
|
|
633,892
|
|
|
3.7
|
%
|
|
3.9
|
%
|
|
610,990
|
|
|
602,720
|
|
|
5.6
|
%
|
|
5.8
|
%
|
|
570,618
|
|
||||
Total cost of sales
|
|
9,272,905
|
|
|
(1.0
|
)%
|
|
(1.1
|
)%
|
|
9,366,485
|
|
|
9,138,492
|
|
|
—
|
%
|
|
0.5
|
%
|
|
9,135,882
|
|
||||
Gross profit
|
|
$
|
1,643,882
|
|
|
1.0
|
%
|
|
1.1
|
%
|
|
$
|
1,627,047
|
|
|
$
|
1,599,824
|
|
|
1.8
|
%
|
|
2.2
|
%
|
|
$
|
1,571,284
|
|
SG&A
|
|
$
|
1,224,480
|
|
|
1.3
|
%
|
|
1.4
|
%
|
|
$
|
1,209,171
|
|
|
$
|
1,179,996
|
|
|
3.0
|
%
|
|
3.3
|
%
|
|
$
|
1,146,049
|
|
Adjusted SG&A
(1)
|
|
$
|
1,216,215
|
|
|
1.4
|
%
|
|
1.4
|
%
|
|
$
|
1,199,931
|
|
|
$
|
1,170,756
|
|
|
2.1
|
%
|
|
2.4
|
%
|
|
$
|
1,146,770
|
|
Depreciation and amortization expenses
|
|
$
|
63,523
|
|
|
12.0
|
%
|
|
11.9
|
%
|
|
$
|
56,729
|
|
|
$
|
55,399
|
|
|
10.8
|
%
|
|
11.2
|
%
|
|
$
|
50,010
|
|
Floorplan interest expense
|
|
$
|
57,849
|
|
|
11.6
|
%
|
|
11.5
|
%
|
|
$
|
51,823
|
|
|
$
|
51,342
|
|
|
15.3
|
%
|
|
15.7
|
%
|
|
$
|
44,517
|
|
Gross margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
New vehicle retail
|
|
5.1
|
%
|
|
|
|
|
|
5.2
|
%
|
|
5.2
|
%
|
|
|
|
|
|
5.2
|
%
|
||||||||
Used vehicle
|
|
5.4
|
%
|
|
|
|
|
|
5.5
|
%
|
|
5.6
|
%
|
|
|
|
|
|
5.7
|
%
|
||||||||
Parts and service
|
|
53.4
|
%
|
|
|
|
|
|
53.8
|
%
|
|
53.7
|
%
|
|
|
|
|
|
54.0
|
%
|
||||||||
Total gross margin
|
|
15.1
|
%
|
|
|
|
|
|
14.8
|
%
|
|
14.9
|
%
|
|
|
|
|
|
14.7
|
%
|
||||||||
Adjusted Total gross margin
(1)
|
|
15.0%
|
|
|
|
|
|
|
14.9%
|
|
|
15.0
|
%
|
|
|
|
|
|
14.7
|
%
|
||||||||
Adjusted Finance, insurance, and other, net
(1)
|
|
$
|
445,073
|
|
|
3.4
|
%
|
|
3.4%
|
|
|
$
|
430,351
|
|
|
$
|
424,455
|
|
|
2.5
|
%
|
|
2.8
|
%
|
|
$
|
414,015
|
|
Adjusted Total revenue
(1)
|
|
$
|
10,915,712
|
|
|
(0.8
|
)%
|
|
(0.8
|
)%
|
|
$
|
11,000,082
|
|
|
$
|
10,744,866
|
|
|
0.4
|
%
|
|
0.8
|
%
|
|
$
|
10,707,166
|
|
Adjusted Gross profit
(1)
|
|
$
|
1,642,807
|
|
|
0.6
|
%
|
|
0.6%
|
|
|
$
|
1,633,597
|
|
|
$
|
1,606,374
|
|
|
2.2
|
%
|
|
2.6
|
%
|
|
$
|
1,571,284
|
|
SG&A as a % of gross profit
|
|
74.5
|
%
|
|
|
|
|
|
74.3
|
%
|
|
73.8
|
%
|
|
|
|
|
|
72.9
|
%
|
||||||||
Adjusted SG&A as a % of gross profit
(1)
|
|
74.0
|
%
|
|
|
|
|
|
73.5
|
%
|
|
72.9
|
%
|
|
|
|
|
|
73.0
|
%
|
||||||||
Operating margin
|
|
2.9
|
%
|
|
|
|
|
|
3.1
|
%
|
|
3.2
|
%
|
|
|
|
|
|
3.2
|
%
|
Adjusted operating margin
(1)
|
|
3.3
|
%
|
|
|
|
|
|
3.4
|
%
|
|
3.5
|
%
|
|
|
|
|
|
3.5
|
%
|
||||||||
Finance and insurance revenues per retail unit sold
|
|
$
|
1,493
|
|
|
5.3
|
%
|
|
5.3
|
%
|
|
$
|
1,418
|
|
|
$
|
1,443
|
|
|
2.6
|
%
|
|
2.8
|
%
|
|
$
|
1,407
|
|
Adjusted Finance and insurance revenues per retail unit sold
(1)
|
|
$
|
1,490
|
|
|
3.5
|
%
|
|
3.5
|
%
|
|
$
|
1,440
|
|
|
$
|
1,465
|
|
|
4.1
|
%
|
|
4.4
|
%
|
|
$
|
1,407
|
|
|
|
For The Years Ended December 31,
|
|||||||||||||||||||||||||||
|
|
2018
|
|
% Increase/ (Decrease)
|
|
Constant Currency % Increase/(Decrease)
|
|
2017
|
|
|
2017
|
|
% Increase/ (Decrease)
|
|
Constant Currency % Increase/(Decrease)
|
|
2016
|
||||||||||||
Retail Unit Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S.
|
|
120,090
|
|
|
(4.8
|
)%
|
|
|
|
126,205
|
|
|
|
126,247
|
|
|
(1.7
|
)%
|
|
|
|
128,441
|
|
||||||
U.K.
|
|
31,777
|
|
|
(11.1
|
)%
|
|
|
|
35,751
|
|
|
|
31,054
|
|
|
1.1
|
%
|
|
|
|
30,719
|
|
||||||
Brazil
|
|
8,369
|
|
|
(0.3
|
)%
|
|
|
|
8,390
|
|
|
|
8,198
|
|
|
(6.8
|
)%
|
|
|
|
8,798
|
|
||||||
Total Same Stores
|
|
160,236
|
|
|
(5.9
|
)%
|
|
|
|
170,346
|
|
|
|
165,499
|
|
|
(1.5
|
)%
|
|
|
|
167,958
|
|
||||||
Transactions
|
|
10,281
|
|
|
|
|
|
|
1,854
|
|
|
|
6,701
|
|
|
|
|
|
|
|
4,095
|
|
|||||||
Total
|
|
170,517
|
|
|
(1.0
|
)%
|
|
|
|
172,200
|
|
|
|
172,200
|
|
|
0.1
|
%
|
|
|
|
172,053
|
|
||||||
Retail Sales Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S.
|
|
$
|
4,577,539
|
|
|
(3.1
|
)%
|
|
N/A
|
|
|
$
|
4,722,200
|
|
|
|
$
|
4,732,177
|
|
|
0.4
|
%
|
|
N/A
|
|
|
$
|
4,713,124
|
|
U.K.
|
|
978,873
|
|
|
(8.8
|
)%
|
|
(11.9
|
)%
|
|
1,073,144
|
|
|
|
943,182
|
|
|
(2.5
|
)%
|
|
2.2
|
%
|
|
967,424
|
|
||||
Brazil
|
|
267,261
|
|
|
(9.0
|
)%
|
|
3.6
|
%
|
|
293,820
|
|
|
|
287,190
|
|
|
6.0
|
%
|
|
(2.2
|
)%
|
|
270,923
|
|
||||
Total Same Stores
|
|
5,823,673
|
|
|
(4.4
|
)%
|
|
(4.3
|
)%
|
|
6,089,164
|
|
|
|
5,962,549
|
|
|
0.2
|
%
|
|
0.6
|
%
|
|
5,951,471
|
|
||||
Transactions
|
|
357,698
|
|
|
|
|
|
|
68,367
|
|
|
|
194,982
|
|
|
|
|
|
|
94,604
|
|
||||||||
Total
|
|
$
|
6,181,371
|
|
|
0.4
|
%
|
|
0.3
|
%
|
|
$
|
6,157,531
|
|
|
|
$
|
6,157,531
|
|
|
1.8
|
%
|
|
2.3
|
%
|
|
$
|
6,046,075
|
|
Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S.
|
|
$
|
223,295
|
|
|
(7.5
|
)%
|
|
N/A
|
|
|
$
|
241,341
|
|
|
|
$
|
242,301
|
|
|
0.7
|
%
|
|
N/A
|
|
|
$
|
240,528
|
|
U.K.
|
|
54,607
|
|
|
(8.7
|
)%
|
|
(11.4
|
)%
|
|
59,827
|
|
|
|
52,962
|
|
|
(5.3
|
)%
|
|
(0.8
|
)%
|
|
55,921
|
|
||||
Brazil
|
|
17,516
|
|
|
2.8
|
%
|
|
18.0
|
%
|
|
17,044
|
|
|
|
16,662
|
|
|
6.5
|
%
|
|
(1.7
|
)%
|
|
15,652
|
|
||||
Total Same Stores
|
|
295,418
|
|
|
(7.2
|
)%
|
|
(6.9
|
)%
|
|
318,212
|
|
|
|
311,925
|
|
|
(0.1
|
)%
|
|
0.3
|
%
|
|
312,101
|
|
||||
Transactions
|
|
15,451
|
|
|
|
|
|
|
3,793
|
|
|
|
10,080
|
|
|
|
|
|
|
4,277
|
|
||||||||
Total
|
|
$
|
310,869
|
|
|
(3.5
|
)%
|
|
(3.2
|
)%
|
|
$
|
322,005
|
|
|
|
$
|
322,005
|
|
|
1.8
|
%
|
|
2.2
|
%
|
|
$
|
316,378
|
|
Gross Profit per Retail Unit Sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
1,859
|
|
|
(2.8
|
)%
|
|
N/A
|
|
|
$
|
1,912
|
|
|
|
$
|
1,919
|
|
|
2.5
|
%
|
|
N/A
|
|
|
$
|
1,873
|
|
U.K.
|
|
$
|
1,718
|
|
|
2.7
|
%
|
|
(0.3
|
)%
|
|
$
|
1,673
|
|
|
|
$
|
1,705
|
|
|
(6.3
|
)%
|
|
(1.9
|
)%
|
|
$
|
1,820
|
|
Brazil
|
|
$
|
2,093
|
|
|
3.1
|
%
|
|
18.3
|
%
|
|
$
|
2,031
|
|
|
|
$
|
2,032
|
|
|
14.2
|
%
|
|
5.5
|
%
|
|
$
|
1,779
|
|
Total Same Stores
|
|
$
|
1,844
|
|
|
(1.3
|
)%
|
|
(1.0
|
)%
|
|
$
|
1,868
|
|
|
|
$
|
1,885
|
|
|
1.5
|
%
|
|
1.8
|
%
|
|
$
|
1,858
|
|
Transactions
|
|
$
|
1,503
|
|
|
|
|
|
|
|
$
|
2,046
|
|
|
|
$
|
1,504
|
|
|
|
|
|
|
|
$
|
1,044
|
|
||
Total
|
|
$
|
1,823
|
|
|
(2.5
|
)%
|
|
(2.3
|
)%
|
|
$
|
1,870
|
|
|
|
$
|
1,870
|
|
|
1.7
|
%
|
|
2.2
|
%
|
|
$
|
1,839
|
|
Gross Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
4.9
|
%
|
|
|
|
|
|
5.1
|
%
|
|
|
5.1
|
%
|
|
|
|
|
|
5.1
|
%
|
||||||||
U.K.
|
|
5.6
|
%
|
|
|
|
|
|
5.6
|
%
|
|
|
5.6
|
%
|
|
|
|
|
|
5.8
|
%
|
||||||||
Brazil
|
|
6.6
|
%
|
|
|
|
|
|
5.8
|
%
|
|
|
5.8
|
%
|
|
|
|
|
|
5.8
|
%
|
||||||||
Total Same Stores
|
|
5.1
|
%
|
|
|
|
|
|
5.2
|
%
|
|
|
5.2
|
%
|
|
|
|
|
|
5.2
|
%
|
||||||||
Transactions
|
|
4.3
|
%
|
|
|
|
|
|
5.5
|
%
|
|
|
5.2
|
%
|
|
|
|
|
|
4.5
|
%
|
||||||||
Total
|
|
5.0
|
%
|
|
|
|
|
|
5.2
|
%
|
|
|
5.2
|
%
|
|
|
|
|
|
5.2
|
%
|
|
|
For The Years Ended December 31,
|
|||||||||||||||||
|
|
2018
|
|
% Increase/ (Decrease)
|
|
2017
|
|
|
2017
|
|
% Increase/ (Decrease)
|
|
2016
|
||||||
Toyota/Scion/Lexus
(1)
|
|
41,991
|
|
|
(3.4
|
)%
|
|
43,468
|
|
|
|
42,949
|
|
|
0.2
|
%
|
|
42,869
|
|
BMW/MINI
|
|
20,534
|
|
|
(6.3
|
)
|
|
21,903
|
|
|
|
21,520
|
|
|
(7.1
|
)
|
|
23,160
|
|
Volkswagen/Audi/Porsche/SEAT/SKODA
|
|
20,494
|
|
|
(11.6
|
)
|
|
23,186
|
|
|
|
21,157
|
|
|
8.2
|
|
|
19,546
|
|
Ford/Lincoln
|
|
18,390
|
|
|
(4.9
|
)
|
|
19,329
|
|
|
|
18,710
|
|
|
(1.1
|
)
|
|
18,925
|
|
Honda/Acura
|
|
15,527
|
|
|
(2.2
|
)
|
|
15,882
|
|
|
|
15,882
|
|
|
2.0
|
|
|
15,575
|
|
Nissan
|
|
10,830
|
|
|
(14.2
|
)
|
|
12,624
|
|
|
|
12,045
|
|
|
6.6
|
|
|
11,302
|
|
Chevrolet/GMC/Buick/Cadillac
|
|
10,343
|
|
|
(3.5
|
)
|
|
10,713
|
|
|
|
10,713
|
|
|
(16.4
|
)
|
|
12,811
|
|
Chrysler/Dodge/Jeep/RAM
|
|
6,766
|
|
|
1.1
|
|
|
6,692
|
|
|
|
6,692
|
|
|
(1.6
|
)
|
|
6,801
|
|
Hyundai/Kia
|
|
6,128
|
|
|
(9.3
|
)
|
|
6,757
|
|
|
|
6,484
|
|
|
(4.8
|
)
|
|
6,813
|
|
Mercedes-Benz/smart/Sprinter
|
|
5,277
|
|
|
(16.2
|
)
|
|
6,295
|
|
|
|
6,809
|
|
|
(7.3
|
)
|
|
7,349
|
|
Jaguar/Land Rover
|
|
1,985
|
|
|
25.6
|
|
|
1,580
|
|
|
|
719
|
|
|
(8.2
|
)
|
|
783
|
|
Other
|
|
1,971
|
|
|
2.8
|
|
|
1,917
|
|
|
|
1,819
|
|
|
(10.1
|
)
|
|
2,024
|
|
Total
|
|
160,236
|
|
|
(5.9
|
)%
|
|
170,346
|
|
|
|
165,499
|
|
|
(1.5
|
)%
|
|
167,958
|
|
|
|
For The Years Ended December 31,
|
|||||||||||||||||||||||||||
|
|
2018
|
|
% Increase/ (Decrease)
|
|
Constant Currency % Increase/(Decrease)
|
|
2017
|
|
|
2017
|
|
% Increase/ (Decrease)
|
|
Constant Currency % Increase/(Decrease)
|
|
2016
|
||||||||||||
Retail Unit Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S.
|
|
109,332
|
|
|
8.8
|
%
|
|
|
|
100,475
|
|
|
|
100,542
|
|
|
(3.7
|
)%
|
|
|
|
104,451
|
|
||||||
U.K.
|
|
25,090
|
|
|
4.8
|
%
|
|
|
|
23,940
|
|
|
|
19,632
|
|
|
8.7
|
%
|
|
|
|
18,062
|
|
||||||
Brazil
|
|
4,098
|
|
|
0.1
|
%
|
|
|
|
4,094
|
|
|
|
3,974
|
|
|
3.0
|
%
|
|
|
|
3,859
|
|
||||||
Total Same Stores
|
|
138,520
|
|
|
7.8
|
%
|
|
|
|
128,509
|
|
|
|
124,148
|
|
|
(1.8
|
)%
|
|
|
|
126,372
|
|
||||||
Transactions
|
|
9,479
|
|
|
|
|
|
|
1,424
|
|
|
|
5,785
|
|
|
|
|
|
|
2,759
|
|
||||||||
Total
|
|
147,999
|
|
|
13.9
|
%
|
|
|
|
129,933
|
|
|
|
129,933
|
|
|
0.6
|
%
|
|
|
|
129,131
|
|
||||||
Retail Sales Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S.
|
|
$
|
2,255,446
|
|
|
5.3
|
%
|
|
N/A
|
|
|
$
|
2,141,315
|
|
|
|
$
|
2,146,803
|
|
|
(3.2
|
)%
|
|
N/A
|
|
|
$
|
2,217,717
|
|
U.K.
|
|
612,307
|
|
|
15.0
|
%
|
|
11.4
|
%
|
|
532,469
|
|
|
|
447,777
|
|
|
6.8
|
%
|
|
12.2
|
%
|
|
419,455
|
|
||||
Brazil
|
|
84,985
|
|
|
(5.8
|
)%
|
|
6.9
|
%
|
|
90,210
|
|
|
|
86,298
|
|
|
19.0
|
%
|
|
9.6
|
%
|
|
72,549
|
|
||||
Total Same Stores
|
|
2,952,738
|
|
|
6.8
|
%
|
|
6.5
|
%
|
|
2,763,994
|
|
|
|
2,680,878
|
|
|
(1.1
|
)%
|
|
(0.5
|
)%
|
|
2,709,721
|
|
||||
Transactions
|
|
213,332
|
|
|
|
|
|
|
34,992
|
|
|
|
118,108
|
|
|
|
|
|
|
47,992
|
|
||||||||
Total
|
|
$
|
3,166,070
|
|
|
13.1
|
%
|
|
12.6
|
%
|
|
$
|
2,798,986
|
|
|
|
$
|
2,798,986
|
|
|
1.5
|
%
|
|
2.2
|
%
|
|
$
|
2,757,713
|
|
Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S.
|
|
$
|
138,623
|
|
|
(3.3
|
)%
|
|
N/A
|
|
|
$
|
143,287
|
|
|
|
$
|
143,688
|
|
|
(6.6
|
)%
|
|
N/A
|
|
|
$
|
153,911
|
|
U.K.
|
|
30,387
|
|
|
16.6
|
%
|
|
12.6
|
%
|
|
26,072
|
|
|
|
22,147
|
|
|
3.7
|
%
|
|
9.6
|
%
|
|
21,350
|
|
||||
Brazil
|
|
5,252
|
|
|
(21.7
|
)%
|
|
(11.1
|
)%
|
|
6,708
|
|
|
|
6,488
|
|
|
43.1
|
%
|
|
34.6
|
%
|
|
4,533
|
|
||||
Total Same Stores
|
|
174,262
|
|
|
(1.0
|
)%
|
|
(1.2
|
)%
|
|
176,067
|
|
|
|
172,323
|
|
|
(4.2
|
)%
|
|
(3.7
|
)%
|
|
179,794
|
|
||||
Transactions
|
|
11,666
|
|
|
|
|
|
|
1,488
|
|
|
|
5,232
|
|
|
|
|
|
|
2,685
|
|
||||||||
Total
|
|
$
|
185,928
|
|
|
4.7
|
%
|
|
4.4
|
%
|
|
$
|
177,555
|
|
|
|
$
|
177,555
|
|
|
(2.7
|
)%
|
|
(2.1
|
)%
|
|
$
|
182,479
|
|
Gross Profit per Retail Unit Sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
1,268
|
|
|
(11.1
|
)%
|
|
N/A
|
|
|
$
|
1,426
|
|
|
|
$
|
1,429
|
|
|
(3.1
|
)%
|
|
N/A
|
|
|
$
|
1,474
|
|
U.K.
|
|
$
|
1,211
|
|
|
11.2
|
%
|
|
7.5
|
%
|
|
$
|
1,089
|
|
|
|
$
|
1,128
|
|
|
(4.6
|
)%
|
|
0.8
|
%
|
|
$
|
1,182
|
|
Brazil
|
|
$
|
1,282
|
|
|
(21.7
|
)%
|
|
(11.2
|
)%
|
|
$
|
1,638
|
|
|
|
$
|
1,633
|
|
|
39.0
|
%
|
|
30.7
|
%
|
|
$
|
1,175
|
|
Total Same Stores
|
|
$
|
1,258
|
|
|
(8.2
|
)%
|
|
(8.3
|
)%
|
|
$
|
1,370
|
|
|
|
$
|
1,388
|
|
|
(2.5
|
)%
|
|
(1.9
|
)%
|
|
$
|
1,423
|
|
Transactions
|
|
$
|
1,231
|
|
|
17.8
|
%
|
|
|
|
$
|
1,045
|
|
|
|
$
|
904
|
|
|
(7.1
|
)%
|
|
|
|
$
|
973
|
|
||
Total
|
|
$
|
1,256
|
|
|
(8.1
|
)%
|
|
(8.4
|
)%
|
|
$
|
1,367
|
|
|
|
$
|
1,367
|
|
|
(3.3
|
)%
|
|
(2.7
|
)%
|
|
$
|
1,413
|
|
Gross Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
6.1
|
%
|
|
|
|
|
|
6.7
|
%
|
|
|
6.7
|
%
|
|
|
|
|
|
6.9
|
%
|
||||||||
U.K.
|
|
5.0
|
%
|
|
|
|
|
|
4.9
|
%
|
|
|
4.9
|
%
|
|
|
|
|
|
5.1
|
%
|
||||||||
Brazil
|
|
6.2
|
%
|
|
|
|
|
|
7.4
|
%
|
|
|
7.5
|
%
|
|
|
|
|
|
6.2
|
%
|
||||||||
Total Same Stores
|
|
5.9
|
%
|
|
|
|
|
|
6.4
|
%
|
|
|
6.4
|
%
|
|
|
|
|
|
6.6
|
%
|
||||||||
Transactions
|
|
5.5
|
%
|
|
|
|
|
|
4.3
|
%
|
|
|
4.4
|
%
|
|
|
|
|
|
5.6
|
%
|
||||||||
Total
|
|
5.9
|
%
|
|
|
|
|
|
6.3
|
%
|
|
|
6.3
|
%
|
|
|
|
|
|
6.6
|
%
|
|
|
For The Years Ended December 31,
|
|||||||||||||||||||||||||||
|
|
2018
|
|
% Increase/ (Decrease)
|
|
Constant Currency % Increase/(Decrease)
|
|
2017
|
|
|
2017
|
|
% Increase/ (Decrease)
|
|
Constant Currency % Increase/(Decrease)
|
|
2016
|
||||||||||||
Wholesale Unit Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S.
|
|
29,915
|
|
|
(20.0
|
)%
|
|
|
|
37,383
|
|
|
|
37,415
|
|
|
(7.3
|
)%
|
|
|
|
40,361
|
|
||||||
U.K.
|
|
17,883
|
|
|
0.1
|
%
|
|
|
|
17,871
|
|
|
|
14,861
|
|
|
3.0
|
%
|
|
|
|
14,428
|
|
||||||
Brazil
|
|
1,487
|
|
|
43.3
|
%
|
|
|
|
1,038
|
|
|
|
997
|
|
|
6.7
|
%
|
|
|
|
934
|
|
||||||
Total Same Stores
|
|
49,285
|
|
|
(12.4
|
)%
|
|
|
|
56,292
|
|
|
|
53,273
|
|
|
(4.4
|
)%
|
|
|
|
55,723
|
|
||||||
Transactions
|
|
4,602
|
|
|
|
|
|
|
852
|
|
|
|
3,871
|
|
|
|
|
|
|
1,616
|
|
||||||||
Total
|
|
53,887
|
|
|
(5.7
|
)%
|
|
|
|
57,144
|
|
|
|
57,144
|
|
|
(0.3
|
)%
|
|
|
|
57,339
|
|
||||||
Wholesale Sales Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S.
|
|
$
|
173,968
|
|
|
(29.8
|
)%
|
|
N/A
|
|
|
$
|
247,852
|
|
|
|
$
|
248,922
|
|
|
(8.7
|
)%
|
|
N/A
|
|
|
$
|
272,623
|
|
U.K.
|
|
144,303
|
|
|
8.1
|
%
|
|
4.6
|
%
|
|
133,483
|
|
|
|
113,082
|
|
|
(2.9
|
)%
|
|
1.9
|
%
|
|
116,519
|
|
||||
Brazil
|
|
16,441
|
|
|
30.1
|
%
|
|
49.8
|
%
|
|
12,638
|
|
|
|
12,144
|
|
|
314.6
|
%
|
|
287.3
|
%
|
|
2,929
|
|
||||
Total Same Stores
|
|
334,712
|
|
|
(15.0
|
)%
|
|
(15.6
|
)%
|
|
393,973
|
|
|
|
374,148
|
|
|
(4.6
|
)%
|
|
(3.3
|
)%
|
|
392,071
|
|
||||
Transactions
|
|
34,863
|
|
|
|
|
|
|
6,197
|
|
|
|
26,022
|
|
|
|
|
|
|
9,792
|
|
||||||||
Total
|
|
$
|
369,575
|
|
|
(7.6
|
)%
|
|
(8.5
|
)%
|
|
$
|
400,170
|
|
|
|
$
|
400,170
|
|
|
(0.4
|
)%
|
|
1.1
|
%
|
|
$
|
401,863
|
|
Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S.
|
|
$
|
3,747
|
|
|
255.4
|
%
|
|
N/A
|
|
|
$
|
(2,411
|
)
|
|
|
$
|
(2,452
|
)
|
|
17.3
|
%
|
|
N/A
|
|
|
$
|
(2,964
|
)
|
U.K.
|
|
(1,947
|
)
|
|
(78.8
|
)%
|
|
(75.7
|
)%
|
|
(1,089
|
)
|
|
|
(831
|
)
|
|
25.9
|
%
|
|
33.2
|
%
|
|
(1,122
|
)
|
||||
Brazil
|
|
630
|
|
|
(26.5
|
)%
|
|
(15.6
|
)%
|
|
857
|
|
|
|
838
|
|
|
341.1
|
%
|
|
311.2
|
%
|
|
190
|
|
||||
Total Same Stores
|
|
2,430
|
|
|
191.9
|
%
|
|
196.8
|
%
|
|
(2,643
|
)
|
|
|
(2,445
|
)
|
|
37.2
|
%
|
|
37.8
|
%
|
|
(3,896
|
)
|
||||
Transactions
|
|
(735
|
)
|
|
|
|
|
|
(99
|
)
|
|
|
(297
|
)
|
|
|
|
|
|
(546
|
)
|
||||||||
Total
|
|
$
|
1,695
|
|
|
161.8
|
%
|
|
166.9
|
%
|
|
$
|
(2,742
|
)
|
|
|
$
|
(2,742
|
)
|
|
38.3
|
%
|
|
38.8
|
%
|
|
$
|
(4,442
|
)
|
Gross Profit per Wholesale Unit Sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
125
|
|
|
295.3
|
%
|
|
N/A
|
|
|
$
|
(64
|
)
|
|
|
$
|
(66
|
)
|
|
9.6
|
%
|
|
N/A
|
|
|
$
|
(73
|
)
|
U.K.
|
|
$
|
(109
|
)
|
|
(78.7
|
)%
|
|
(75.6
|
)%
|
|
$
|
(61
|
)
|
|
|
$
|
(56
|
)
|
|
28.2
|
%
|
|
35.2
|
%
|
|
$
|
(78
|
)
|
Brazil
|
|
$
|
424
|
|
|
(48.7
|
)%
|
|
(41.1
|
)%
|
|
$
|
826
|
|
|
|
$
|
841
|
|
|
314.3
|
%
|
|
285.3
|
%
|
|
$
|
203
|
|
Total Same Stores
|
|
$
|
49
|
|
|
204.3
|
%
|
|
210.5
|
%
|
|
$
|
(47
|
)
|
|
|
$
|
(46
|
)
|
|
34.3
|
%
|
|
34.9
|
%
|
|
$
|
(70
|
)
|
Transactions
|
|
$
|
(160
|
)
|
|
(37.9
|
)%
|
|
|
|
$
|
(116
|
)
|
|
|
$
|
(77
|
)
|
|
77.2
|
%
|
|
|
|
$
|
(338
|
)
|
||
Total
|
|
$
|
31
|
|
|
164.6
|
%
|
|
171.0
|
%
|
|
$
|
(48
|
)
|
|
|
$
|
(48
|
)
|
|
37.7
|
%
|
|
38.5
|
%
|
|
$
|
(77
|
)
|
Gross Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
2.2
|
%
|
|
|
|
|
|
(1.0
|
)%
|
|
|
(1.0
|
)%
|
|
|
|
|
|
(1.1
|
)%
|
||||||||
U.K.
|
|
(1.3
|
)%
|
|
|
|
|
|
(0.8
|
)%
|
|
|
(0.7
|
)%
|
|
|
|
|
|
(1.0
|
)%
|
||||||||
Brazil
|
|
3.8
|
%
|
|
|
|
|
|
6.8
|
%
|
|
|
6.9
|
%
|
|
|
|
|
|
6.5
|
%
|
||||||||
Total Same Stores
|
|
0.7
|
%
|
|
|
|
|
|
(0.7
|
)%
|
|
|
(0.7
|
)%
|
|
|
|
|
|
(1.0
|
)%
|
||||||||
Transactions
|
|
(2.1
|
)%
|
|
|
|
|
|
(1.6
|
)%
|
|
|
(1.1
|
)%
|
|
|
|
|
|
(5.6
|
)%
|
||||||||
Total
|
|
0.5
|
%
|
|
|
|
|
|
(0.7
|
)%
|
|
|
(0.7
|
)%
|
|
|
|
|
|
(1.1
|
)%
|
|
|
For The Years Ended December 31,
|
|||||||||||||||||||||||||||
|
|
2018
|
|
% Increase/ (Decrease)
|
|
Constant Currency % Increase/(Decrease)
|
|
2017
|
|
|
2017
|
|
% Increase/ (Decrease)
|
|
Constant Currency % Increase/(Decrease)
|
|
2016
|
||||||||||||
Used Vehicle Unit Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S.
|
|
139,247
|
|
|
1.0
|
%
|
|
|
|
137,858
|
|
|
|
137,957
|
|
|
(4.7
|
)%
|
|
|
|
144,812
|
|
||||||
U.K.
|
|
42,973
|
|
|
2.8
|
%
|
|
|
|
41,811
|
|
|
|
34,493
|
|
|
6.2
|
%
|
|
|
|
32,490
|
|
||||||
Brazil
|
|
5,585
|
|
|
8.8
|
%
|
|
|
|
5,132
|
|
|
|
4,971
|
|
|
3.7
|
%
|
|
|
|
4,793
|
|
||||||
Total Same Stores
|
|
187,805
|
|
|
1.6
|
%
|
|
|
|
184,801
|
|
|
|
177,421
|
|
|
(2.6
|
)%
|
|
|
|
182,095
|
|
||||||
Transactions
|
|
14,081
|
|
|
|
|
|
|
2,276
|
|
|
|
9,656
|
|
|
|
|
|
|
4,375
|
|
||||||||
Total
|
|
201,886
|
|
|
7.9
|
%
|
|
|
|
187,077
|
|
|
|
187,077
|
|
|
0.3
|
%
|
|
|
|
186,470
|
|
||||||
Sales Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S.
|
|
$
|
2,429,414
|
|
|
1.7
|
%
|
|
N/A
|
|
|
$
|
2,389,167
|
|
|
|
$
|
2,395,725
|
|
|
(3.8
|
)%
|
|
N/A
|
|
|
$
|
2,490,340
|
|
U.K.
|
|
756,610
|
|
|
13.6
|
%
|
|
10.0
|
%
|
|
665,952
|
|
|
|
560,859
|
|
|
4.6
|
%
|
|
10.0
|
%
|
|
535,974
|
|
||||
Brazil
|
|
101,426
|
|
|
(1.4
|
)%
|
|
12.2
|
%
|
|
102,848
|
|
|
|
98,442
|
|
|
30.4
|
%
|
|
20.4
|
%
|
|
75,478
|
|
||||
Total Same Stores
|
|
3,287,450
|
|
|
4.1
|
%
|
|
3.8
|
%
|
|
3,157,967
|
|
|
|
3,055,026
|
|
|
(1.5
|
)%
|
|
(0.8
|
)%
|
|
3,101,792
|
|
||||
Transactions
|
|
248,195
|
|
|
|
|
|
|
41,189
|
|
|
|
144,130
|
|
|
|
|
|
|
57,784
|
|
||||||||
Total
|
|
$
|
3,535,645
|
|
|
10.5
|
%
|
|
10.0
|
%
|
|
$
|
3,199,156
|
|
|
|
$
|
3,199,156
|
|
|
1.3
|
%
|
|
2.1
|
%
|
|
$
|
3,159,576
|
|
Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S.
|
|
$
|
142,370
|
|
|
1.1
|
%
|
|
N/A
|
|
|
$
|
140,876
|
|
|
|
$
|
141,236
|
|
|
(6.4
|
)%
|
|
N/A
|
|
|
$
|
150,947
|
|
U.K.
|
|
28,440
|
|
|
13.8
|
%
|
|
9.9
|
%
|
|
24,983
|
|
|
|
21,316
|
|
|
5.4
|
%
|
|
12.0
|
%
|
|
20,228
|
|
||||
Brazil
|
|
5,882
|
|
|
(22.2
|
)%
|
|
(11.6
|
)%
|
|
7,565
|
|
|
|
7,326
|
|
|
55.1
|
%
|
|
45.7
|
%
|
|
4,723
|
|
||||
Total Same Stores
|
|
176,692
|
|
|
1.9
|
%
|
|
1.8
|
%
|
|
173,424
|
|
|
|
169,878
|
|
|
(3.4
|
)%
|
|
(2.9
|
)%
|
|
175,898
|
|
||||
Transactions
|
|
10,931
|
|
|
|
|
|
|
1,389
|
|
|
|
4,935
|
|
|
|
|
|
|
2,139
|
|
||||||||
Total
|
|
$
|
187,623
|
|
|
7.3
|
%
|
|
7.0
|
%
|
|
$
|
174,813
|
|
|
|
$
|
174,813
|
|
|
(1.8
|
)%
|
|
(1.2
|
)%
|
|
$
|
178,037
|
|
Gross Profit per Used
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Vehicle Unit Sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
1,022
|
|
|
—
|
%
|
|
N/A
|
|
|
$
|
1,022
|
|
|
|
$
|
1,024
|
|
|
(1.7
|
)%
|
|
N/A
|
|
|
$
|
1,042
|
|
U.K.
|
|
$
|
662
|
|
|
10.7
|
%
|
|
6.9
|
%
|
|
$
|
598
|
|
|
|
$
|
618
|
|
|
(0.8
|
)%
|
|
5.5
|
%
|
|
$
|
623
|
|
Brazil
|
|
$
|
1,053
|
|
|
(28.6
|
)%
|
|
(18.8
|
)%
|
|
$
|
1,474
|
|
|
|
$
|
1,474
|
|
|
49.6
|
%
|
|
40.5
|
%
|
|
$
|
985
|
|
Total Same Stores
|
|
$
|
941
|
|
|
0.3
|
%
|
|
0.2
|
%
|
|
$
|
938
|
|
|
|
$
|
957
|
|
|
(0.9
|
)%
|
|
(0.4
|
)%
|
|
$
|
966
|
|
Transactions
|
|
$
|
776
|
|
|
27.2
|
%
|
|
|
|
$
|
610
|
|
|
|
$
|
511
|
|
|
4.5
|
%
|
|
|
|
$
|
489
|
|
||
Total
|
|
$
|
929
|
|
|
(0.5
|
)%
|
|
(0.8
|
)%
|
|
$
|
934
|
|
|
|
$
|
934
|
|
|
(2.2
|
)%
|
|
(1.5
|
)%
|
|
$
|
955
|
|
Gross Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
5.9
|
%
|
|
|
|
|
|
5.9
|
%
|
|
|
5.9
|
%
|
|
|
|
|
|
6.1
|
%
|
||||||||
U.K.
|
|
3.8
|
%
|
|
|
|
|
|
3.8
|
%
|
|
|
3.8
|
%
|
|
|
|
|
|
3.8
|
%
|
||||||||
Brazil
|
|
5.8
|
%
|
|
|
|
|
|
7.4
|
%
|
|
|
7.4
|
%
|
|
|
|
|
|
6.3
|
%
|
||||||||
Total Same Stores
|
|
5.4
|
%
|
|
|
|
|
|
5.5
|
%
|
|
|
5.6
|
%
|
|
|
|
|
|
5.7
|
%
|
||||||||
Transactions
|
|
4.4
|
%
|
|
|
|
|
|
3.4
|
%
|
|
|
3.4
|
%
|
|
|
|
|
|
3.7
|
%
|
||||||||
Total
|
|
5.3
|
%
|
|
|
|
|
|
5.5
|
%
|
|
|
5.5
|
%
|
|
|
|
|
|
5.6
|
%
|
|
|
For The Years Ended December 31,
|
|||||||||||||||||||||||||||
|
|
2018
|
|
% Increase/ (Decrease)
|
|
Constant Currency % Increase/(Decrease)
|
|
2017
|
|
|
2017
|
|
% Increase/ (Decrease)
|
|
Constant Currency % Increase/(Decrease)
|
|
2016
|
||||||||||||
Parts and Service Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S.
|
|
$
|
1,137,841
|
|
|
2.2
|
%
|
|
N/A
|
|
|
$
|
1,113,635
|
|
|
|
$
|
1,118,749
|
|
|
5.3
|
%
|
|
N/A
|
|
|
$
|
1,062,465
|
|
U.K.
|
|
177,079
|
|
|
9.5
|
%
|
|
6.1
|
%
|
|
161,723
|
|
|
|
138,143
|
|
|
0.2
|
%
|
|
5.0
|
%
|
|
137,800
|
|
||||
Brazil
|
|
44,596
|
|
|
(5.6
|
)%
|
|
7.5
|
%
|
|
47,242
|
|
|
|
45,944
|
|
|
16.0
|
%
|
|
7.2
|
%
|
|
39,623
|
|
||||
Total Same Stores
|
|
1,359,516
|
|
|
2.8
|
%
|
|
2.8
|
%
|
|
1,322,600
|
|
|
|
1,302,836
|
|
|
5.1
|
%
|
|
5.3
|
%
|
|
1,239,888
|
|
||||
Transactions
|
|
57,373
|
|
|
|
|
|
|
15,432
|
|
|
|
35,196
|
|
|
|
|
|
|
21,419
|
|
||||||||
Total
|
|
$
|
1,416,889
|
|
|
5.9
|
%
|
|
5.8
|
%
|
|
$
|
1,338,032
|
|
|
|
$
|
1,338,032
|
|
|
6.1
|
%
|
|
6.4
|
%
|
|
$
|
1,261,307
|
|
Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S.
|
|
$
|
606,405
|
|
|
1.5
|
%
|
|
N/A
|
|
|
$
|
597,184
|
|
|
|
$
|
599,933
|
|
|
4.0
|
%
|
|
N/A
|
|
|
$
|
576,925
|
|
U.K.
|
|
99,375
|
|
|
7.0
|
%
|
|
3.7
|
%
|
|
92,842
|
|
|
|
79,083
|
|
|
3.7
|
%
|
|
8.6
|
%
|
|
76,235
|
|
||||
Brazil
|
|
19,844
|
|
|
(8.1
|
)%
|
|
4.6
|
%
|
|
21,584
|
|
|
|
21,100
|
|
|
31.0
|
%
|
|
21.1
|
%
|
|
16,110
|
|
||||
Total Same Stores
|
|
725,624
|
|
|
2.0
|
%
|
|
1.9
|
%
|
|
711,610
|
|
|
|
700,116
|
|
|
4.6
|
%
|
|
4.9
|
%
|
|
669,270
|
|
||||
Transactions
|
|
33,524
|
|
|
|
|
|
|
8,079
|
|
|
|
19,573
|
|
|
|
|
|
|
10,730
|
|
||||||||
Total
|
|
$
|
759,148
|
|
|
5.5
|
%
|
|
5.3
|
%
|
|
$
|
719,689
|
|
|
|
$
|
719,689
|
|
|
5.8
|
%
|
|
6.3
|
%
|
|
$
|
680,000
|
|
Gross Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
53.3
|
%
|
|
|
|
|
|
53.6
|
%
|
|
|
53.6
|
%
|
|
|
|
|
|
54.3
|
%
|
||||||||
U.K.
|
|
56.1
|
%
|
|
|
|
|
|
57.4
|
%
|
|
|
57.2
|
%
|
|
|
|
|
|
55.3
|
%
|
||||||||
Brazil
|
|
44.5
|
%
|
|
|
|
|
|
45.7
|
%
|
|
|
45.9
|
%
|
|
|
|
|
|
40.7
|
%
|
||||||||
Total Same Stores
|
|
53.4
|
%
|
|
|
|
|
|
53.8
|
%
|
|
|
53.7
|
%
|
|
|
|
|
|
54.0
|
%
|
||||||||
Transactions
|
|
58.4
|
%
|
|
|
|
|
|
52.4
|
%
|
|
|
55.6
|
%
|
|
|
|
|
|
50.1
|
%
|
||||||||
Total
|
|
53.6
|
%
|
|
|
|
|
|
53.8
|
%
|
|
|
53.8
|
%
|
|
|
|
|
|
53.9
|
%
|
|
|
For The Years Ended December 31,
|
|||||||||||||||||||||||||||
|
|
2018
|
|
% Increase/ (Decrease)
|
|
Constant Currency % Increase/(Decrease)
|
|
2017
|
|
|
2017
|
|
% Increase/ (Decrease)
|
|
Constant Currency % Increase/(Decrease)
|
|
2016
|
||||||||||||
Retail New and Used Unit Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S.
|
|
229,422
|
|
|
1.2
|
%
|
|
|
|
226,680
|
|
|
|
226,789
|
|
|
(2.6
|
)%
|
|
|
|
232,892
|
|
||||||
U.K.
|
|
56,867
|
|
|
(4.7
|
)%
|
|
|
|
59,691
|
|
|
|
50,686
|
|
|
3.9
|
%
|
|
|
|
48,781
|
|
||||||
Brazil
|
|
12,467
|
|
|
(0.1
|
)%
|
|
|
|
12,484
|
|
|
|
12,172
|
|
|
(3.8
|
)%
|
|
|
|
12,657
|
|
||||||
Total Same Stores
|
|
298,756
|
|
|
—
|
%
|
|
|
|
298,855
|
|
|
|
289,647
|
|
|
(1.6
|
)%
|
|
|
|
294,330
|
|
||||||
Transactions
|
|
19,760
|
|
|
|
|
|
|
3,278
|
|
|
|
12,486
|
|
|
|
|
|
|
6,854
|
|
||||||||
Total
|
|
318,516
|
|
|
5.4
|
%
|
|
|
|
302,133
|
|
|
|
302,133
|
|
|
0.3
|
%
|
|
|
|
301,184
|
|
||||||
Retail Finance Fees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S.
|
|
$
|
116,065
|
|
|
0.5
|
%
|
|
N/A
|
|
|
$
|
115,507
|
|
|
|
$
|
115,794
|
|
|
(4.5
|
)%
|
|
N/A
|
|
|
$
|
121,267
|
|
U.K.
|
|
28,053
|
|
|
3.8
|
%
|
|
1.3
|
%
|
|
27,035
|
|
|
|
23,233
|
|
|
14.5
|
%
|
|
18.9
|
%
|
|
20,288
|
|
||||
Brazil
|
|
2,328
|
|
|
(1.6
|
)%
|
|
13.0
|
%
|
|
2,365
|
|
|
|
2,331
|
|
|
52.4
|
%
|
|
42.4
|
%
|
|
1,530
|
|
||||
Total Same Stores
|
|
146,446
|
|
|
1.1
|
%
|
|
0.8
|
%
|
|
144,907
|
|
|
|
141,358
|
|
|
(1.2
|
)%
|
|
(0.7
|
)%
|
|
143,085
|
|
||||
Transactions
|
|
8,731
|
|
|
|
|
|
|
1,772
|
|
|
|
5,321
|
|
|
|
|
|
|
1,713
|
|
||||||||
Total
|
|
$
|
155,177
|
|
|
5.8
|
%
|
|
5.4
|
%
|
|
$
|
146,679
|
|
|
|
$
|
146,679
|
|
|
1.3
|
%
|
|
1.9
|
%
|
|
$
|
144,798
|
|
Vehicle Service Contract Fees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S.
|
|
$
|
159,738
|
|
|
10.7
|
%
|
|
N/A
|
|
|
$
|
144,360
|
|
|
|
$
|
144,109
|
|
|
1.4
|
%
|
|
N/A
|
|
|
$
|
142,105
|
|
U.K.
|
|
861
|
|
|
15.3
|
%
|
|
11.0
|
%
|
|
747
|
|
|
|
639
|
|
|
22.4
|
%
|
|
26.9
|
%
|
|
522
|
|
||||
Brazil
|
|
—
|
|
|
—
|
%
|
|
—
|
%
|
|
—
|
|
|
|
—
|
|
|
—
|
%
|
|
—
|
%
|
|
—
|
|
||||
Total Same Stores
|
|
160,599
|
|
|
10.7
|
%
|
|
10.7
|
%
|
|
145,107
|
|
|
|
144,748
|
|
|
1.5
|
%
|
|
1.5
|
%
|
|
142,627
|
|
||||
Transactions
|
|
2,650
|
|
|
|
|
|
|
499
|
|
|
|
858
|
|
|
|
|
|
|
1,253
|
|
||||||||
Total
|
|
$
|
163,249
|
|
|
12.1
|
%
|
|
12.1
|
%
|
|
$
|
145,606
|
|
|
|
$
|
145,606
|
|
|
1.2
|
%
|
|
1.2
|
%
|
|
$
|
143,880
|
|
Insurance and Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S.
|
|
$
|
115,927
|
|
|
3.4
|
%
|
|
N/A
|
|
|
$
|
112,065
|
|
|
|
$
|
112,098
|
|
|
2.6
|
%
|
|
N/A
|
|
|
$
|
109,209
|
|
U.K.
|
|
16,874
|
|
|
6.8
|
%
|
|
3.4
|
%
|
|
15,802
|
|
|
|
13,890
|
|
|
(6.0
|
)%
|
|
(1.3
|
)%
|
|
14,772
|
|
||||
Brazil
|
|
6,302
|
|
|
6.5
|
%
|
|
22.4
|
%
|
|
5,920
|
|
|
|
5,811
|
|
|
34.5
|
%
|
|
24.2
|
%
|
|
4,322
|
|
||||
Total Same Stores
|
|
139,103
|
|
|
4.0
|
%
|
|
4.3
|
%
|
|
133,787
|
|
|
|
131,799
|
|
|
2.7
|
%
|
|
2.9
|
%
|
|
128,303
|
|
||||
Transactions
|
|
9,924
|
|
|
|
|
|
|
2,930
|
|
|
|
4,918
|
|
|
|
|
|
|
3,673
|
|
||||||||
Total
|
|
$
|
149,027
|
|
|
9.0
|
%
|
|
9.2
|
%
|
|
$
|
136,717
|
|
|
|
$
|
136,717
|
|
|
3.6
|
%
|
|
3.8
|
%
|
|
$
|
131,976
|
|
Total Finance and Insurance Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S.
|
|
$
|
391,730
|
|
|
5.3
|
%
|
|
N/A
|
|
|
$
|
371,932
|
|
|
|
$
|
372,001
|
|
|
(0.2
|
)%
|
|
N/A
|
|
|
$
|
372,581
|
|
U.K.
|
|
45,788
|
|
|
5.1
|
%
|
|
2.2
|
%
|
|
43,584
|
|
|
|
37,762
|
|
|
6.1
|
%
|
|
10.7
|
%
|
|
35,582
|
|
||||
Brazil
|
|
8,630
|
|
|
4.2
|
%
|
|
19.7
|
%
|
|
8,285
|
|
|
|
8,142
|
|
|
39.1
|
%
|
|
28.9
|
%
|
|
5,852
|
|
||||
Total Same Stores
|
|
446,148
|
|
|
5.3
|
%
|
|
5.3
|
%
|
|
423,801
|
|
|
|
417,905
|
|
|
0.9
|
%
|
|
1.2
|
%
|
|
414,015
|
|
||||
Transactions
|
|
21,305
|
|
|
|
|
|
|
5,201
|
|
|
|
11,097
|
|
|
|
|
|
|
6,639
|
|
Total
|
|
$
|
467,453
|
|
|
9.0
|
%
|
|
8.9
|
%
|
|
$
|
429,002
|
|
|
|
$
|
429,002
|
|
|
2.0
|
%
|
|
2.3
|
%
|
|
$
|
420,654
|
|
Finance and Insurance Revenues per Unit Sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S.
|
|
$
|
1,707
|
|
|
4.0
|
%
|
|
N/A
|
|
|
$
|
1,641
|
|
|
|
$
|
1,640
|
|
|
2.5
|
%
|
|
N/A
|
|
|
$
|
1,600
|
|
U.K.
|
|
$
|
805
|
|
|
10.3
|
%
|
|
7.3
|
%
|
|
$
|
730
|
|
|
|
$
|
745
|
|
|
2.2
|
%
|
|
6.5
|
%
|
|
$
|
729
|
|
Brazil
|
|
$
|
692
|
|
|
4.2
|
%
|
|
19.9
|
%
|
|
$
|
664
|
|
|
|
$
|
669
|
|
|
44.8
|
%
|
|
34.0
|
%
|
|
$
|
462
|
|
Total Same Stores
|
|
$
|
1,493
|
|
|
5.3
|
%
|
|
5.3
|
%
|
|
$
|
1,418
|
|
|
|
$
|
1,443
|
|
|
2.6
|
%
|
|
2.8
|
%
|
|
$
|
1,407
|
|
Transactions
|
|
$
|
1,078
|
|
|
|
|
|
|
$
|
1,587
|
|
|
|
$
|
889
|
|
|
|
|
|
|
$
|
969
|
|
||||
Total
|
|
$
|
1,468
|
|
|
3.4
|
%
|
|
3.3
|
%
|
|
$
|
1,420
|
|
|
|
$
|
1,420
|
|
|
1.6
|
%
|
|
2.0
|
%
|
|
$
|
1,397
|
|
Adjusted Total Finance and Insurance Revenues
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S.
|
|
$
|
390,655
|
|
|
3.2
|
%
|
|
N/A
|
|
|
$
|
378,482
|
|
|
|
$
|
378,551
|
|
|
1.6
|
%
|
|
N/A
|
|
|
$
|
372,581
|
|
U.K.
|
|
45,788
|
|
|
5.1
|
%
|
|
2.2
|
%
|
|
43,584
|
|
|
|
37,762
|
|
|
6.1
|
%
|
|
10.7
|
%
|
|
35,582
|
|
||||
Brazil
|
|
8,630
|
|
|
4.2
|
%
|
|
19.7
|
%
|
|
8,285
|
|
|
|
8,142
|
|
|
39.1
|
%
|
|
28.9
|
%
|
|
5,852
|
|
||||
Total Same Stores
|
|
445,073
|
|
|
3.4
|
%
|
|
3.4
|
%
|
|
430,351
|
|
|
|
424,455
|
|
|
2.5
|
%
|
|
2.8
|
%
|
|
414,015
|
|
||||
Transactions
|
|
21,305
|
|
|
|
|
|
|
5,201
|
|
|
|
11,097
|
|
|
|
|
|
|
6,639
|
|
||||||||
Total
|
|
$
|
466,378
|
|
|
7.1
|
%
|
|
7.0
|
%
|
|
$
|
435,552
|
|
|
|
$
|
435,552
|
|
|
3.5
|
%
|
|
3.8
|
%
|
|
$
|
420,654
|
|
Adjusted Finance and Insurance Revenues per Unit Sold
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
U.S.
|
|
$
|
1,703
|
|
|
2.0
|
%
|
|
N/A
|
|
|
$
|
1,670
|
|
|
|
$
|
1,669
|
|
|
4.3
|
%
|
|
N/A
|
|
|
$
|
1,600
|
|
U.K.
|
|
$
|
805
|
|
|
10.3
|
%
|
|
7.3
|
%
|
|
$
|
730
|
|
|
|
$
|
745
|
|
|
2.2
|
%
|
|
6.5
|
%
|
|
$
|
729
|
|
Brazil
|
|
$
|
692
|
|
|
4.2
|
%
|
|
19.9
|
%
|
|
$
|
664
|
|
|
|
$
|
669
|
|
|
44.8
|
%
|
|
34.0
|
%
|
|
$
|
462
|
|
Total Same Stores
|
|
$
|
1,490
|
|
|
3.5
|
%
|
|
3.5
|
%
|
|
$
|
1,440
|
|
|
|
$
|
1,465
|
|
|
4.1
|
%
|
|
4.4
|
%
|
|
$
|
1,407
|
|
Transactions
|
|
$
|
1,078
|
|
|
|
|
|
|
$
|
1,587
|
|
|
|
$
|
889
|
|
|
|
|
|
|
$
|
969
|
|
||||
Total
|
|
$
|
1,464
|
|
|
1.5
|
%
|
|
1.5
|
%
|
|
$
|
1,442
|
|
|
|
$
|
1,442
|
|
|
3.2
|
%
|
|
3.5
|
%
|
|
$
|
1,397
|
|
|
|
For The Years Ended December 31,
|
|||||||||||||||||||||||||||
|
|
2018
|
|
% Increase/ (Decrease)
|
|
Constant Currency % Increase/(Decrease)
|
|
2017
|
|
|
2017
|
|
% Increase/ (Decrease)
|
|
Constant Currency % Increase/(Decrease)
|
|
2016
|
||||||||||||
Personnel
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
U.S.
|
|
$
|
637,255
|
|
|
3.1
|
%
|
|
N/A
|
|
|
$
|
618,183
|
|
|
|
$
|
620,073
|
|
|
0.7
|
%
|
|
N/A
|
|
|
$
|
615,620
|
|
U.K.
|
|
111,929
|
|
|
3.2
|
%
|
|
—
|
%
|
|
108,493
|
|
|
|
92,226
|
|
|
3.8
|
%
|
|
8.6
|
%
|
|
88,826
|
|
||||
Brazil
|
|
24,905
|
|
|
(12.8
|
)%
|
|
(0.6
|
)%
|
|
28,550
|
|
|
|
27,671
|
|
|
24.8
|
%
|
|
15.9
|
%
|
|
22,166
|
|
||||
Total Same Stores
|
|
774,089
|
|
|
2.5
|
%
|
|
2.5
|
%
|
|
755,226
|
|
|
|
739,970
|
|
|
1.8
|
%
|
|
2.1
|
%
|
|
726,612
|
|
||||
Transactions
|
|
37,948
|
|
|
|
|
|
|
9,305
|
|
|
|
24,561
|
|
|
|
|
|
|
14,309
|
|
||||||||
Total
|
|
$
|
812,037
|
|
|
6.2
|
%
|
|
6.1
|
%
|
|
$
|
764,531
|
|
|
|
$
|
764,531
|
|
|
3.2
|
%
|
|
3.6
|
%
|
|
$
|
740,921
|
|
Advertising
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
U.S.
|
|
$
|
63,097
|
|
|
(3.7
|
)%
|
|
N/A
|
|
|
$
|
65,549
|
|
|
|
$
|
65,104
|
|
|
(2.9
|
)%
|
|
N/A
|
|
|
$
|
67,039
|
|
U.K.
|
|
7,168
|
|
|
3.3
|
%
|
|
0.1
|
%
|
|
6,941
|
|
|
|
5,375
|
|
|
(5.8
|
)%
|
|
(1.6
|
)%
|
|
5,706
|
|
||||
Brazil
|
|
1,078
|
|
|
17.8
|
%
|
|
32.5
|
%
|
|
915
|
|
|
|
885
|
|
|
(24.3
|
)%
|
|
(29.4
|
)%
|
|
1,169
|
|
||||
Total Same Stores
|
|
71,343
|
|
|
(2.8
|
)%
|
|
(2.9
|
)%
|
|
73,405
|
|
|
|
71,364
|
|
|
(3.4
|
)%
|
|
(3.2
|
)%
|
|
73,914
|
|
||||
Transactions
|
|
3,855
|
|
|
|
|
|
|
715
|
|
|
|
2,756
|
|
|
|
|
|
|
1,418
|
|
||||||||
Total
|
|
$
|
75,198
|
|
|
1.5
|
%
|
|
1.2
|
%
|
|
$
|
74,120
|
|
|
|
$
|
74,120
|
|
|
(1.6
|
)%
|
|
(1.3
|
)%
|
|
$
|
75,332
|
|
Rent and Facility Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
U.S.
|
|
$
|
75,123
|
|
|
(6.3
|
)%
|
|
N/A
|
|
|
$
|
80,179
|
|
|
|
$
|
79,748
|
|
|
(1.6
|
)%
|
|
N/A
|
|
|
$
|
81,059
|
|
U.K.
|
|
24,325
|
|
|
21.8
|
%
|
|
18.2
|
%
|
|
19,975
|
|
|
|
16,137
|
|
|
2.1
|
%
|
|
6.4
|
%
|
|
15,799
|
|
||||
Brazil
|
|
8,133
|
|
|
(9.1
|
)%
|
|
3.2
|
%
|
|
8,952
|
|
|
|
8,625
|
|
|
17.0
|
%
|
|
7.9
|
%
|
|
7,373
|
|
||||
Total Same Stores
|
|
107,581
|
|
|
(1.4
|
)%
|
|
(1.0
|
)%
|
|
109,106
|
|
|
|
104,510
|
|
|
0.3
|
%
|
|
0.3
|
%
|
|
104,231
|
|
||||
Transactions
|
|
6,981
|
|
|
|
|
|
|
1,942
|
|
|
|
6,538
|
|
|
|
|
|
|
5,689
|
|
||||||||
Total
|
|
$
|
114,562
|
|
|
3.2
|
%
|
|
3.4
|
%
|
|
$
|
111,048
|
|
|
|
$
|
111,048
|
|
|
1.0
|
%
|
|
1.1
|
%
|
|
$
|
109,920
|
|
Other SG&A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
U.S.
|
|
$
|
204,056
|
|
|
(2.6
|
)%
|
|
N/A
|
|
|
$
|
209,501
|
|
|
|
$
|
210,776
|
|
|
10.1
|
%
|
|
N/A
|
|
|
$
|
191,390
|
|
U.K.
|
|
53,477
|
|
|
5.4
|
%
|
|
2.3
|
%
|
|
50,751
|
|
|
|
42,631
|
|
|
5.8
|
%
|
|
10.2
|
%
|
|
40,295
|
|
||||
Brazil
|
|
13,934
|
|
|
24.6
|
%
|
|
46.3
|
%
|
|
11,182
|
|
|
|
10,745
|
|
|
11.8
|
%
|
|
3.5
|
%
|
|
9,607
|
|
||||
Total Same Stores
|
|
271,467
|
|
|
—
|
%
|
|
0.3
|
%
|
|
271,434
|
|
|
|
264,152
|
|
|
9.5
|
%
|
|
9.9
|
%
|
|
241,292
|
|
||||
Transactions
|
|
(207
|
)
|
|
|
|
|
|
5,062
|
|
|
|
12,344
|
|
|
|
|
|
|
3,298
|
|
||||||||
Total
|
|
$
|
271,260
|
|
|
(1.9
|
)%
|
|
(1.7
|
)%
|
|
$
|
276,496
|
|
|
|
$
|
276,496
|
|
|
13.0
|
%
|
|
13.6
|
%
|
|
$
|
244,590
|
|
Total SG&A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
U.S.
|
|
$
|
979,531
|
|
|
0.6
|
%
|
|
N/A
|
|
|
$
|
973,412
|
|
|
|
$
|
975,701
|
|
|
2.2
|
%
|
|
N/A
|
|
|
$
|
955,108
|
|
U.K.
|
|
196,899
|
|
|
5.8
|
%
|
|
2.6
|
%
|
|
186,160
|
|
|
|
156,369
|
|
|
3.8
|
%
|
|
8.4
|
%
|
|
150,626
|
|
||||
Brazil
|
|
48,050
|
|
|
(3.1
|
)%
|
|
11.3
|
%
|
|
49,599
|
|
|
|
47,926
|
|
|
18.9
|
%
|
|
10.1
|
%
|
|
40,315
|
|
||||
Total Same Stores
|
|
1,224,480
|
|
|
1.3
|
%
|
|
1.4
|
%
|
|
1,209,171
|
|
|
|
1,179,996
|
|
|
3.0
|
%
|
|
3.3
|
%
|
|
1,146,049
|
|
||||
Transactions
|
|
48,577
|
|
|
|
|
|
|
17,024
|
|
|
|
46,199
|
|
|
|
|
|
|
24,714
|
|
||||||||
Total
|
|
$
|
1,273,057
|
|
|
3.8
|
%
|
|
3.8
|
%
|
|
$
|
1,226,195
|
|
|
|
$
|
1,226,195
|
|
|
4.7
|
%
|
|
5.1
|
%
|
|
$
|
1,170,763
|
|
Total Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S.
|
|
$
|
1,363,800
|
|
|
0.9
|
%
|
|
N/A
|
|
|
$
|
1,351,333
|
|
|
|
$
|
1,355,471
|
|
|
1.1
|
%
|
|
N/A
|
|
|
$
|
1,340,981
|
|
U.K.
|
|
228,210
|
|
|
3.2
|
%
|
|
—
|
%
|
|
221,236
|
|
|
|
191,123
|
|
|
1.7
|
%
|
|
6.6
|
%
|
|
187,966
|
|
||||
Brazil
|
|
51,872
|
|
|
(4.8
|
)%
|
|
8.9
|
%
|
|
54,478
|
|
|
|
53,230
|
|
|
25.7
|
%
|
|
16.4
|
%
|
|
42,337
|
|
||||
Total Same Stores
|
|
1,643,882
|
|
|
1.0
|
%
|
|
1.1
|
%
|
|
1,627,047
|
|
|
|
1,599,824
|
|
|
1.8
|
%
|
|
2.2
|
%
|
|
1,571,284
|
|
||||
Transactions
|
|
81,211
|
|
|
|
|
|
|
18,462
|
|
|
|
45,685
|
|
|
|
|
|
|
23,785
|
|
||||||||
Total
|
|
$
|
1,725,093
|
|
|
4.8
|
%
|
|
4.8
|
%
|
|
$
|
1,645,509
|
|
|
|
$
|
1,645,509
|
|
|
3.2
|
%
|
|
3.6
|
%
|
|
$
|
1,595,069
|
|
SG&A as a % of Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
|
71.8
|
%
|
|
|
|
|
|
72.0
|
%
|
|
|
72.0
|
%
|
|
|
|
|
|
71.2
|
%
|
||||||||
U.K.
|
|
86.3
|
%
|
|
|
|
|
|
84.1
|
%
|
|
|
81.8
|
%
|
|
|
|
|
|
80.1
|
%
|
||||||||
Brazil
|
|
92.6
|
%
|
|
|
|
|
|
91.0
|
%
|
|
|
90.0
|
%
|
|
|
|
|
|
95.2
|
%
|
||||||||
Total Same Stores
|
|
74.5
|
%
|
|
|
|
|
|
74.3
|
%
|
|
|
73.8
|
%
|
|
|
|
|
|
72.9
|
%
|
||||||||
Transactions
|
|
59.8
|
%
|
|
|
|
|
|
92.2
|
%
|
|
|
101.1
|
%
|
|
|
|
|
|
103.9
|
%
|
||||||||
Total
|
|
73.8
|
%
|
|
|
|
|
|
74.5
|
%
|
|
|
74.5
|
%
|
|
|
|
|
|
73.4
|
%
|
||||||||
Adjusted Total
SG&A
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S.
|
|
$
|
974,201
|
|
|
1.0
|
%
|
|
N/A
|
|
|
$
|
964,935
|
|
|
|
$
|
967,224
|
|
|
1.1
|
%
|
|
N/A
|
|
|
$
|
956,848
|
|
U.K.
|
|
196,899
|
|
|
5.9
|
%
|
|
2.7
|
%
|
|
185,872
|
|
|
|
156,081
|
|
|
4.1
|
%
|
|
8.7
|
%
|
|
149,882
|
|
||||
Brazil
|
|
45,116
|
|
|
(8.2
|
)%
|
|
4.8
|
%
|
|
49,124
|
|
|
|
47,451
|
|
|
18.5
|
%
|
|
9.7
|
%
|
|
40,041
|
|
||||
Total Same Stores
|
|
1,216,215
|
|
|
1.4
|
%
|
|
1.4
|
%
|
|
1,199,931
|
|
|
|
1,170,756
|
|
|
2.1
|
%
|
|
2.4
|
%
|
|
1,146,770
|
|
||||
Transactions
|
|
70,656
|
|
|
|
|
|
|
17,024
|
|
|
|
46,199
|
|
|
|
|
|
|
29,210
|
|
||||||||
Total
|
|
$
|
1,286,871
|
|
|
5.7
|
%
|
|
5.7
|
%
|
|
$
|
1,216,955
|
|
|
|
$
|
1,216,955
|
|
|
3.5
|
%
|
|
3.9
|
%
|
|
$
|
1,175,980
|
|
Adjusted SG&A as a % of Gross Profit
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S.
|
|
71.5
|
%
|
|
|
|
|
|
71.1
|
%
|
|
|
71.0
|
%
|
|
|
|
|
|
71.4
|
%
|
||||||||
U.K.
|
|
86.3
|
%
|
|
|
|
|
|
84.0
|
%
|
|
|
81.7
|
%
|
|
|
|
|
|
79.7
|
%
|
||||||||
Brazil
|
|
87.0
|
%
|
|
|
|
|
|
90.2
|
%
|
|
|
89.1
|
%
|
|
|
|
|
|
94.6
|
%
|
||||||||
Total Same Stores
|
|
74.0
|
%
|
|
|
|
|
|
73.5
|
%
|
|
|
72.9
|
%
|
|
|
|
|
|
73.0
|
%
|
||||||||
Transactions
|
|
87.0
|
%
|
|
|
|
|
|
92.2
|
%
|
|
|
63.9
|
%
|
|
|
|
|
|
122.8
|
%
|
||||||||
Total
|
|
74.6
|
%
|
|
|
|
|
|
73.7
|
%
|
|
|
73.7
|
%
|
|
|
|
|
|
73.7
|
%
|
||||||||
Employees
|
|
14,023
|
|
|
|
|
|
|
13,901
|
|
|
|
14,100
|
|
|
|
|
|
|
13,500
|
|
|
|
For The Years Ended December 31,
|
|||||||||||||||||||||||||||
|
|
2018
|
|
% Increase/ (Decrease)
|
|
Constant Currency % Increase/(Decrease)
|
|
2017
|
|
|
2017
|
|
% Increase/ (Decrease)
|
|
Constant Currency % Increase/(Decrease)
|
|
2016
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S.
|
|
$
|
51,597
|
|
|
9.3
|
%
|
|
N/A
|
|
|
$
|
47,205
|
|
|
|
$
|
47,217
|
|
|
11.0
|
%
|
|
N/A
|
|
|
$
|
42,554
|
|
U.K.
|
|
10,331
|
|
|
28.0
|
%
|
|
24.5
|
%
|
|
8,071
|
|
|
|
6,787
|
|
|
8.3
|
%
|
|
13.1
|
%
|
|
6,264
|
|
||||
Brazil
|
|
1,595
|
|
|
9.8
|
%
|
|
25.5
|
%
|
|
1,453
|
|
|
|
1,395
|
|
|
17.0
|
%
|
|
7.8
|
%
|
|
1,192
|
|
||||
Total Same Stores
|
|
63,523
|
|
|
12.0
|
%
|
|
11.9
|
%
|
|
56,729
|
|
|
|
55,399
|
|
|
10.8
|
%
|
|
11.2
|
%
|
|
50,010
|
|
||||
Transactions
|
|
3,547
|
|
|
|
|
|
|
1,207
|
|
|
|
2,537
|
|
|
|
|
|
|
1,224
|
|
||||||||
Total
|
|
$
|
67,070
|
|
|
15.8
|
%
|
|
15.5
|
%
|
|
$
|
57,936
|
|
|
|
$
|
57,936
|
|
|
13.1
|
%
|
|
13.6
|
%
|
|
$
|
51,234
|
|
|
|
For The Years Ended December 31,
|
|||||||||||||||||||||||||||
|
|
2018
|
|
% Increase/ (Decrease)
|
|
Constant Currency % Increase/(Decrease)
|
|
2017
|
|
|
2017
|
|
% Increase/ (Decrease)
|
|
Constant Currency % Increase/(Decrease)
|
|
2016
|
||||||||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S.
|
|
$
|
51,656
|
|
|
10.6
|
%
|
|
N/A
|
|
|
$
|
46,697
|
|
|
|
$
|
46,845
|
|
|
16.6
|
%
|
|
N/A
|
|
|
$
|
40,186
|
|
U.K.
|
|
5,407
|
|
|
15.9
|
%
|
|
12.4
|
%
|
|
4,667
|
|
|
|
4,182
|
|
|
4.8
|
%
|
|
8.9
|
%
|
|
3,991
|
|
||||
Brazil
|
|
786
|
|
|
71.2
|
%
|
|
94.2
|
%
|
|
459
|
|
|
|
315
|
|
|
(7.4
|
)%
|
|
(8.3
|
)%
|
|
340
|
|
||||
Total Same Stores
|
|
57,849
|
|
|
11.6
|
%
|
|
11.5
|
%
|
|
51,823
|
|
|
|
51,342
|
|
|
15.3
|
%
|
|
15.7
|
%
|
|
44,517
|
|
||||
Transactions
|
|
2,033
|
|
|
|
|
|
|
549
|
|
|
|
1,030
|
|
|
|
|
|
|
410
|
|
||||||||
Total
|
|
$
|
59,882
|
|
|
14.3
|
%
|
|
14.2
|
%
|
|
$
|
52,372
|
|
|
|
$
|
52,372
|
|
|
16.6
|
%
|
|
17.0
|
%
|
|
$
|
44,927
|
|
Memo:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Manufacturer’s assistance
|
|
$
|
47,277
|
|
|
(3.4
|
)%
|
|
(3.5
|
)%
|
|
$
|
48,935
|
|
|
|
$
|
48,935
|
|
|
(0.5
|
)%
|
|
(0.4
|
)%
|
|
$
|
49,202
|
|
|
|
For the Years Ended December 31,
|
||||||||||
U.S. GAAP Basis
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net cash provided by (used in) operating activities
|
|
$
|
269,978
|
|
|
$
|
196,515
|
|
|
$
|
384,097
|
|
Net cash provided by (used in) investing activities
|
|
(168,001
|
)
|
|
(312,598
|
)
|
|
(174,040
|
)
|
|||
Net cash provided by (used in) financing activities
|
|
(109,543
|
)
|
|
121,476
|
|
|
(205,007
|
)
|
|||
Effect of exchange rate changes on cash
|
|
(3,345
|
)
|
|
(8
|
)
|
|
2,145
|
|
|||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
|
$
|
(10,911
|
)
|
|
$
|
5,385
|
|
|
$
|
7,195
|
|
|
|
For the Years Ended December 31,
|
||||||||||
Adjusted, Non-GAAP Basis
(1)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Adjusted net cash provided by (used in) operating activities
|
|
$
|
309,787
|
|
|
$
|
282,257
|
|
|
$
|
270,981
|
|
Adjusted net cash provided by (used in) investing activities
|
|
(175,962
|
)
|
|
(297,865
|
)
|
|
(190,639
|
)
|
|||
Adjusted net cash provided by (used in) financing activities
|
|
(141,391
|
)
|
|
21,001
|
|
|
(75,292
|
)
|
|||
Effect of exchange rate changes on cash
|
|
(3,345
|
)
|
|
(8
|
)
|
|
2,145
|
|
|||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
|
$
|
(10,911
|
)
|
|
$
|
5,385
|
|
|
$
|
7,195
|
|
|
|
As of December 31, 2018
|
||||||||||
U.S. Credit Facilities
|
|
Total
Commitment
|
|
Outstanding
|
|
Available
|
||||||
Floorplan Line
(1)
|
|
$
|
1,465,356
|
|
|
$
|
1,217,765
|
|
|
$
|
247,591
|
|
Acquisition Line
(2)
|
|
334,644
|
|
|
57,019
|
|
|
277,625
|
|
|||
Total Revolving Credit Facility
|
|
1,800,000
|
|
|
1,274,784
|
|
|
525,216
|
|
|||
FMCC Facility
(3)
|
|
300,000
|
|
|
160,686
|
|
|
139,314
|
|
|||
Total U.S. Credit Facilities
(4)
|
|
$
|
2,100,000
|
|
|
$
|
1,435,470
|
|
|
$
|
664,530
|
|
(1)
|
The available balance as of
December 31, 2018
includes
$33.6 million
of immediately available funds.
|
(2)
|
The outstanding balance of
$57.0 million
is related to outstanding letters of credit of
$25.3 million
and
$31.7 million
in borrowings as of December 31, 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 as of
December 31, 2018
includes
$0.1 million
of immediately available funds.
|
(4)
|
The outstanding balance excludes
$298.2 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 December 31, 2018
|
|
|
Required
|
Actual
|
Total Adjusted Leverage Ratio
|
< 5.50
|
3.80
|
Fixed Charge Coverage Ratio
|
> 1.20
|
2.42
|
|
|
Payments Due by Period
|
||||||||||||||||||
|
|
Total
|
|
1 Year
|
|
2-3 Years
|
|
4-5 Years
|
|
Thereafter
|
||||||||||
Floorplan notes payable
|
|
$
|
1,676,639
|
|
|
$
|
1,676,639
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Acquisition line payable
|
|
31,842
|
|
|
—
|
|
|
31,842
|
|
|
|
|
—
|
|
||||||
Estimated interest payments on floor plan notes payable
(1)
|
|
19,134
|
|
|
15,211
|
|
|
3,923
|
|
|
—
|
|
|
—
|
|
|||||
Debt obligations
(2)
|
|
1,322,461
|
|
|
112,340
|
|
|
110,338
|
|
|
957,732
|
|
|
142,051
|
|
|||||
Estimated interest payments on fixed-rate long-term debt obligations
(3)
|
|
179,974
|
|
|
46,283
|
|
|
89,956
|
|
|
42,600
|
|
|
1,135
|
|
|||||
Estimated interest payments on variable-rate long-term debt obligations
(4)
|
|
59,388
|
|
|
14,298
|
|
|
23,482
|
|
|
14,190
|
|
|
7,418
|
|
|||||
Capital lease obligations
|
|
48,612
|
|
|
6,165
|
|
|
7,460
|
|
|
7,490
|
|
|
27,497
|
|
|||||
Estimated interest on capital lease obligations
|
|
29,003
|
|
|
3,796
|
|
|
6,606
|
|
|
5,016
|
|
|
13,585
|
|
|||||
Operating lease obligations
|
|
296,543
|
|
|
38,298
|
|
|
65,608
|
|
|
50,975
|
|
|
141,662
|
|
|||||
Estimated interest payments on interest rate risk management obligations
(5)
|
|
1,811
|
|
|
115
|
|
|
1,696
|
|
|
—
|
|
|
—
|
|
|||||
Purchase commitments
(6)
|
|
10,932
|
|
|
8,609
|
|
|
2,297
|
|
|
26
|
|
|
—
|
|
|||||
Total
|
|
$
|
3,676,339
|
|
|
$
|
1,921,754
|
|
|
$
|
343,208
|
|
|
$
|
1,078,029
|
|
|
$
|
333,348
|
|
(1)
|
Calculated using the Floorplan Line outstanding balance and weighted average interest rate at
December 31, 2018
, and the assumption that these liabilities would be settled within 66 days, which approximates our weighted average new vehicle inventory days outstanding. In addition, amounts include estimated commitment fees on the unused portion of the Floorplan Line through the term of the Revolving Credit Facility, assuming no additional Floorplan Line borrowings beyond 66 days.
|
(2)
|
Payments due within 1 year include
$25.3 million
of outstanding letters of credit associated with the Acquisition Line of our Revolving Credit Facility.
|
(3)
|
Includes interest on our 5.00% Notes, 5.25% Notes and other real estate related debt.
|
(4)
|
Includes interest on letters of credit associated with the Acquisition Line of our Revolving Credit Facility, commitment fees on the unused portion of the Acquisition Line through the term of the Revolving Credit Facility, and estimated interest on our U.K. Notes, Brazil Note and other real estate related debt.
|
(5)
|
Amounts represent the estimated net future settlement of our obligation to pay a fixed interest rate and right to receive a variable interest rate, based upon a forecasted LIBOR forward curve and the maturity date of each obligation. The estimated fair value of these obligations as of
December 31, 2018
was
$1.8 million
. These amounts exclude the impact of estimated net future settlements of $4.3 million, $7.9 million, $2.2 million and $6.0 million, in which our right to receive a variable interest rate exceeds our obligation to pay a fixed interest rate for periods 1 year, 2-3 years, 4-5 years and thereafter, respectively.
|
(6)
|
Includes Information Technology commitments and other. See Note
15
, “Commitments and Contingencies”, within the Notes to Consolidated Financial Statements, for additional discussion of our contractual obligations.
|
|
U.S. Adjustments for
|
||||||||||||||||||||||||||
|
Year Ended December 31, 2018
|
||||||||||||||||||||||||||
|
U.S. GAAP
|
|
Catastrophic events
|
|
Gain (loss) on real estate and dealership transactions
|
|
Legal settlements
|
|
Non-cash asset impairment
|
|
Tax rate changes
|
|
Non-GAAP Adjusted
|
||||||||||||||
Finance, insurance, and other revenues, net
|
$
|
401,271
|
|
|
$
|
(1,075
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
400,196
|
|
Selling, general and administrative expenses
|
982,064
|
|
|
(6,417
|
)
|
|
25,186
|
|
|
(1,285
|
)
|
|
—
|
|
|
—
|
|
|
999,548
|
|
|||||||
Asset impairments
|
43,398
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(43,398
|
)
|
|
—
|
|
|
—
|
|
|||||||
Income (loss) from operations
|
312,963
|
|
|
5,342
|
|
|
(25,186
|
)
|
|
1,285
|
|
|
43,398
|
|
|
—
|
|
|
337,802
|
|
|||||||
Income (loss) before income taxes
|
192,105
|
|
|
5,342
|
|
|
(25,186
|
)
|
|
1,285
|
|
|
43,398
|
|
|
—
|
|
|
216,944
|
|
|||||||
Benefit (provision) for income taxes
|
(43,734
|
)
|
|
(1,330
|
)
|
|
6,087
|
|
|
(324
|
)
|
|
(10,285
|
)
|
|
(705
|
)
|
|
(50,291
|
)
|
|||||||
Net income (loss)
|
$
|
148,371
|
|
|
$
|
4,012
|
|
|
$
|
(19,099
|
)
|
|
$
|
961
|
|
|
$
|
33,113
|
|
|
$
|
(705
|
)
|
|
$
|
166,653
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
SG&A as % Gross Profit:
|
70.6
|
|
|
|
|
|
|
|
|
|
|
|
|
71.9
|
|
||||||||||||
Operating Margin %:
|
3.6
|
|
|
|
|
|
|
|
|
|
|
|
|
3.9
|
|
||||||||||||
Pretax Margin %:
|
2.2
|
|
|
|
|
|
|
|
|
|
|
|
|
2.5
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Same Store Finance, insurance, and other revenues, net
|
$
|
391,730
|
|
|
$
|
(1,075
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
390,655
|
|
Same Store SG&A
|
979,531
|
|
|
(6,417
|
)
|
|
2,372
|
|
|
(1,285
|
)
|
|
—
|
|
|
—
|
|
|
974,201
|
|
|||||||
Same Store SG&A as % Gross Profit:
|
71.8
|
|
|
|
|
|
|
|
|
|
|
|
|
71.5
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Same Store income (loss) from operations
|
$
|
290,518
|
|
|
$
|
5,342
|
|
|
$
|
(2,372
|
)
|
|
$
|
1,285
|
|
|
$
|
42,154
|
|
|
$
|
—
|
|
|
$
|
336,927
|
|
Same Store Operating Margin %:
|
3.4
|
|
|
|
|
|
|
|
|
|
|
|
|
3.9
|
|
|
U.K. Adjustments for
|
||||||||||
|
Year Ended December 31, 2018
|
||||||||||
|
U.S. GAAP
|
|
Non-cash asset impairment
|
|
Non-GAAP Adjusted
|
||||||
Selling, general and administrative expenses
|
$
|
240,403
|
|
|
$
|
—
|
|
|
$
|
240,403
|
|
Asset impairments
|
485
|
|
|
(485
|
)
|
|
—
|
|
|||
Income from operations
|
26,428
|
|
|
485
|
|
|
26,913
|
|
|||
Income before income taxes
|
13,309
|
|
|
485
|
|
|
13,794
|
|
|||
Provision for income taxes
|
(2,549
|
)
|
|
(83
|
)
|
|
(2,632
|
)
|
|||
Net income
|
$
|
10,760
|
|
|
$
|
402
|
|
|
$
|
11,162
|
|
|
|
|
|
|
|
||||||
SG&A as % Gross Profit
|
85.9
|
|
|
|
|
85.9
|
|
||||
Operating Margin %:
|
1.1
|
|
|
|
|
1.1
|
|
||||
Pretax Margin %:
|
0.5
|
|
|
|
|
0.6
|
|
||||
|
|
|
|
|
|
||||||
Same Store SG&A
|
$
|
196,899
|
|
|
$
|
—
|
|
|
$
|
196,899
|
|
Same Store SG&A as % Gross Profit
|
86.3
|
|
|
|
|
86.3
|
|
||||
|
|
|
|
|
|
||||||
Same Store income from operations
|
$
|
20,495
|
|
|
$
|
485
|
|
|
$
|
20,980
|
|
Same Store Operating Margin %:
|
1.0
|
|
|
|
|
1.1
|
|
|
Brazil Adjustments for
|
||||||||||
|
Year Ended December 31, 2018
|
||||||||||
|
U.S. GAAP
|
|
Legal settlements
|
|
Non-GAAP Adjusted
|
||||||
Selling, general and administrative expenses
|
$
|
50,590
|
|
|
$
|
(3,670
|
)
|
|
$
|
46,920
|
|
Income (loss) from operations
|
1,692
|
|
|
3,670
|
|
|
5,362
|
|
|||
Income (loss) before income taxes
|
(11
|
)
|
|
3,670
|
|
|
3,659
|
|
|||
Benefit (provision) for income taxes
|
(1,348
|
)
|
|
(530
|
)
|
|
(1,878
|
)
|
|||
Net income (loss)
|
$
|
(1,359
|
)
|
|
$
|
3,140
|
|
|
$
|
1,781
|
|
|
|
|
|
|
|
||||||
SG&A as % Gross Profit
|
93.9
|
|
|
|
|
87.1
|
|
||||
Operating Margin %:
|
0.4
|
|
|
|
|
1.2
|
|
||||
Pretax Margin %:
|
—
|
|
|
|
|
0.8
|
|
||||
|
|
|
|
|
|
||||||
Same Store SG&A
|
$
|
48,050
|
|
|
$
|
(2,934
|
)
|
|
$
|
45,116
|
|
Same Store SG&A as % Gross Profit
|
92.6
|
|
|
|
|
87.0
|
|
||||
|
|
|
|
|
|
||||||
Same Store income (loss) from operations
|
$
|
2,227
|
|
|
$
|
2,934
|
|
|
$
|
5,161
|
|
Same Store Operating Margin %:
|
0.5
|
|
|
|
|
1.2
|
|
|
Consolidated Adjustments for
|
||||||||||||||||||||||||||
|
Year Ended December 31, 2018
|
||||||||||||||||||||||||||
|
U.S. GAAP
|
|
Catastrophic events
|
|
Gain (loss) on real estate and dealership transactions
|
|
Legal settlements
|
|
Non-cash asset impairment
|
|
Tax rate changes
|
|
Non-GAAP Adjusted
|
||||||||||||||
Finance, insurance, and other revenues, net
|
$
|
467,453
|
|
|
$
|
(1,075
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
466,378
|
|
Selling, general and administrative expenses
|
1,273,057
|
|
|
(6,417
|
)
|
|
25,186
|
|
|
(4,955
|
)
|
|
—
|
|
|
—
|
|
|
1,286,871
|
|
|||||||
Asset impairments
|
43,883
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(43,883
|
)
|
|
—
|
|
|
—
|
|
|||||||
Income (loss) from operations
|
341,083
|
|
|
5,342
|
|
|
(25,186
|
)
|
|
4,955
|
|
|
43,883
|
|
|
—
|
|
|
370,077
|
|
|||||||
Income (loss) before income taxes
|
205,403
|
|
|
5,342
|
|
|
(25,186
|
)
|
|
4,955
|
|
|
43,883
|
|
|
—
|
|
|
234,397
|
|
|||||||
Benefit (provision) for income taxes
|
(47,631
|
)
|
|
(1,330
|
)
|
|
6,087
|
|
|
(854
|
)
|
|
(10,368
|
)
|
|
(705
|
)
|
|
(54,801
|
)
|
|||||||
Net income (loss)
|
$
|
157,772
|
|
|
$
|
4,012
|
|
|
$
|
(19,099
|
)
|
|
$
|
4,101
|
|
|
$
|
33,515
|
|
|
$
|
(705
|
)
|
|
$
|
179,596
|
|
Less: Adjusted earnings (loss) allocated to participating securities
|
5,414
|
|
|
139
|
|
|
(660
|
)
|
|
141
|
|
|
1,159
|
|
|
(24
|
)
|
|
6,169
|
|
|||||||
Adjusted net income (loss) available to diluted common shares
|
$
|
152,358
|
|
|
$
|
3,873
|
|
|
$
|
(18,439
|
)
|
|
$
|
3,960
|
|
|
$
|
32,356
|
|
|
$
|
(681
|
)
|
|
$
|
173,427
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Diluted income (loss) per common share
|
$
|
7.83
|
|
|
$
|
0.20
|
|
|
$
|
(0.95
|
)
|
|
$
|
0.21
|
|
|
$
|
1.65
|
|
|
$
|
(0.03
|
)
|
|
$
|
8.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Effective tax rate %
|
23.2
|
|
|
|
|
|
|
|
|
|
|
|
|
23.4
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
SG&A as % Gross Profit:
|
73.8
|
|
|
|
|
|
|
|
|
|
|
|
|
74.6
|
|
||||||||||||
Operating Margin %:
|
2.9
|
|
|
|
|
|
|
|
|
|
|
|
|
3.2
|
|
||||||||||||
Pretax Margin %:
|
1.8
|
|
|
|
|
|
|
|
|
|
|
|
|
2.0
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Same Store Finance, insurance, and other revenues, net
|
$
|
446,148
|
|
|
$
|
(1,075
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
445,073
|
|
Same Store SG&A
|
1,224,480
|
|
|
(6,417
|
)
|
|
2,372
|
|
|
(4,220
|
)
|
|
—
|
|
|
—
|
|
|
1,216,215
|
|
|||||||
Same Store SG&A as % Gross Profit
|
74.5
|
|
|
|
|
|
|
|
|
|
|
|
|
74.0
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Same Store income (loss) from operations
|
$
|
313,240
|
|
|
$
|
5,342
|
|
|
$
|
(2,372
|
)
|
|
$
|
4,220
|
|
|
$
|
42,639
|
|
|
$
|
—
|
|
|
$
|
363,069
|
|
Same Store Operating Margin %:
|
2.9
|
|
|
|
|
|
|
|
|
|
|
|
|
3.3
|
|
|
U.S. Adjustments for
|
|||||||||||||||||||||||
|
Year Ended December 31, 2017
|
|||||||||||||||||||||||
|
U.S. GAAP
|
Catastrophic events
|
Gain (loss) on real estate and dealership transactions
|
Legal settlements
|
Non-cash asset impairment
|
Allowance for uncertain tax positions
|
Tax Rate Changes
|
Non-GAAP Adjusted
|
||||||||||||||||
Finance, insurance, and other revenues, net
|
$
|
375,954
|
|
$
|
6,550
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
382,504
|
|
Selling, general and administrative expenses
|
983,974
|
|
(8,792
|
)
|
(798
|
)
|
1,113
|
|
—
|
|
—
|
|
—
|
|
975,497
|
|
||||||||
Asset impairments
|
12,762
|
|
—
|
|
—
|
|
—
|
|
(12,762
|
)
|
$
|
—
|
|
—
|
|
—
|
|
|||||||
Income (loss) from operations
|
320,293
|
|
15,342
|
|
798
|
|
(1,113
|
)
|
12,762
|
|
$
|
—
|
|
—
|
|
348,082
|
|
|||||||
Income (loss) before income taxes
|
206,579
|
|
15,342
|
|
798
|
|
(1,113
|
)
|
12,762
|
|
$
|
—
|
|
—
|
|
234,368
|
|
|||||||
Benefit (provision) for income taxes
|
(5,679
|
)
|
(5,926
|
)
|
(301
|
)
|
426
|
|
(4,801
|
)
|
$
|
834
|
|
(73,028
|
)
|
(88,475
|
)
|
|||||||
Net income (loss)
|
$
|
200,900
|
|
$
|
9,416
|
|
$
|
497
|
|
$
|
(687
|
)
|
$
|
7,961
|
|
$
|
834
|
|
$
|
(73,028
|
)
|
$
|
145,893
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
SG&A as % Gross Profit:
|
72.1
|
|
|
|
|
|
|
|
71.1
|
|
||||||||||||||
Operating Margin %:
|
3.7
|
|
|
|
|
|
|
|
4.0
|
|
||||||||||||||
Pretax Margin %:
|
2.4
|
|
|
|
|
|
|
|
2.7
|
|
||||||||||||||
2017 v. 2018
|
|
|
|
|
|
|
|
|
||||||||||||||||
Same Store Finance, insurance, and other revenues, net
(1)
|
$
|
371,932
|
|
$
|
6,550
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
378,482
|
|
Same Store SG&A
(1)
|
$
|
973,412
|
|
$
|
(8,792
|
)
|
$
|
(798
|
)
|
$
|
1,113
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
964,935
|
|
Same Store SG&A as % Gross Profit:
(1)
|
72.0
|
|
|
|
|
|
|
|
71.1
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||
Same Store income (loss) from operations
(1)
|
$
|
319,682
|
|
$
|
15,341
|
|
$
|
798
|
|
$
|
(1,113
|
)
|
$
|
11,067
|
|
$
|
—
|
|
$
|
—
|
|
$
|
345,775
|
|
Same Store Operating Margin %:
(1)
|
3.7
|
|
|
|
|
|
|
|
4.0
|
|
||||||||||||||
2017 v. 2016
|
|
|
|
|
|
|
|
|
||||||||||||||||
Same Store Finance, insurance, and other revenues, net
(1)
|
$
|
372,001
|
|
$
|
6,550
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
378,551
|
|
Same Store SG&A
(1)
|
$
|
975,701
|
|
$
|
(8,792
|
)
|
$
|
(798
|
)
|
$
|
1,113
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
967,224
|
|
Same Store SG&A as % Gross Profit:
(1)
|
72.0
|
|
|
|
|
|
|
|
71.0
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||
Same Store income (loss) from operations
(1)
|
$
|
319,800
|
|
$
|
15,342
|
|
$
|
798
|
|
$
|
(1,113
|
)
|
$
|
12,762
|
|
$
|
—
|
|
$
|
—
|
|
$
|
347,589
|
|
Same Store Operating Margin %:
(1)
|
3.7
|
|
|
|
|
|
|
|
4.0
|
|
|
U.K. Adjustments for
|
||||||||
|
Year Ended December 31, 2017
|
||||||||
|
U.S. GAAP
|
Acquisition costs
|
Non-GAAP Adjusted
|
||||||
Selling, general and administrative expenses
|
$
|
191,570
|
|
$
|
(288
|
)
|
$
|
191,282
|
|
Income from operations
|
25,485
|
|
288
|
|
25,773
|
|
|||
Income before income taxes
|
17,094
|
|
288
|
|
17,382
|
|
|||
Provision for income taxes
|
(2,142
|
)
|
—
|
|
(2,142
|
)
|
|||
Net income
|
$
|
14,952
|
|
$
|
288
|
|
$
|
15,240
|
|
|
|
|
|
||||||
SG&A as % Gross Profit:
|
85.0
|
|
|
84.9
|
|
||||
Operating Margin %:
|
1.3
|
|
|
1.3
|
|
||||
Pretax Margin %:
|
0.9
|
|
|
0.9
|
|
||||
2017 v. 2018
|
|
|
|
||||||
Same Store SG&A
(1)
|
$
|
186,160
|
|
$
|
(288
|
)
|
$
|
185,872
|
|
Same Store SG&A as % Gross Profit:
(1)
|
84.1
|
|
|
84.0
|
|
||||
|
|
|
|
||||||
Same Store income from operations
(1)
|
$
|
27,005
|
|
$
|
288
|
|
$
|
27,293
|
|
Same Store Operating Margin %:
(1)
|
1.4
|
|
|
1.4
|
|
||||
2017 v. 2016
|
|
|
|
||||||
Same Store SG&A
(1)
|
$
|
156,369
|
|
$
|
(288
|
)
|
$
|
156,081
|
|
Same Store SG&A as % Gross Profit:
(1)
|
81.8
|
|
|
81.7
|
|
||||
|
|
|
|
||||||
Same Store income from operations
(1)
|
$
|
27,967
|
|
$
|
288
|
|
$
|
28,255
|
|
Same Store Operating Margin %:
(1)
|
1.7
|
|
|
1.7
|
|
|
Brazil Adjustments for
|
|||||||||||
|
Year Ended December 31, 2017
|
|||||||||||
|
U.S. GAAP
|
Severance costs
|
Non-cash asset impairment
|
Non-GAAP Adjusted
|
||||||||
Selling, general and administrative expenses
|
$
|
50,651
|
|
$
|
(475
|
)
|
$
|
—
|
|
$
|
50,176
|
|
Asset impairments
|
6,744
|
|
—
|
|
(6,744
|
)
|
—
|
|
||||
Income (loss) from operations
|
(3,906
|
)
|
475
|
|
6,744
|
|
3,313
|
|
||||
Income (loss) before income taxes
|
(4,670
|
)
|
475
|
|
6,744
|
|
2,549
|
|
||||
Benefit (provision) for income taxes
|
2,260
|
|
(122
|
)
|
(2,293
|
)
|
(155
|
)
|
||||
Net income (loss)
|
$
|
(2,410
|
)
|
$
|
353
|
|
$
|
4,451
|
|
$
|
2,394
|
|
|
|
|
|
|
||||||||
SG&A as % Gross Profit:
|
92.2
|
|
|
|
91.3
|
|
||||||
Operating Margin %:
|
(0.9
|
)
|
|
|
0.7
|
|
||||||
Pretax Margin %:
|
(1.0
|
)
|
|
|
0.6
|
|
||||||
2017 v. 2018
|
|
|
|
|
||||||||
Same Store SG&A
(1)
|
$
|
49,599
|
|
$
|
(475
|
)
|
$
|
—
|
|
$
|
49,124
|
|
Same Store SG&A as % Gross Profit:
(1)
|
91.0
|
|
|
|
90.2
|
|
||||||
|
|
|
|
|
||||||||
Same Store income (loss) from operations
(1)
|
$
|
(3,318
|
)
|
$
|
—
|
|
$
|
—
|
|
$
|
3,901
|
|
Same Store Operating Margin %:
(1)
|
(0.7
|
)
|
|
|
0.9
|
|
||||||
2017 v. 2016
|
|
|
|
|
||||||||
Same Store SG&A
(1)
|
$
|
47,926
|
|
$
|
(475
|
)
|
$
|
—
|
|
$
|
47,451
|
|
Same Store SG&A as % Gross Profit:
(1)
|
90.0
|
|
|
|
89.1
|
|
||||||
|
|
|
|
|
||||||||
Same Store income (loss) from operations
(1)
|
$
|
(2,835
|
)
|
$
|
475
|
|
$
|
6,744
|
|
$
|
4,384
|
|
Same Store Operating Margin %:
(1)
|
(0.6
|
)
|
|
|
1.0
|
|
|
Consolidated Adjustments for
|
|||||||||||||||||||||||||||||
|
|
Year Ended December 31, 2017
|
|
|||||||||||||||||||||||||||
|
U.S. GAAP
|
Catastrophic events
|
Gain (loss) on real estate and dealership transactions
|
Severance costs
|
Acquisition costs
|
Legal settlements
(2)
|
Non-cash asset impairment
|
Allowance for uncertain tax positions
|
Tax Rate Changes
|
Non-GAAP Adjusted
|
||||||||||||||||||||
Finance, insurance, and other revenues, net
|
$
|
429,002
|
|
$
|
6,550
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
435,552
|
|
Selling, general and administrative expenses
|
1,226,195
|
|
(8,792
|
)
|
(798
|
)
|
(475
|
)
|
(288
|
)
|
1,113
|
|
—
|
|
—
|
|
—
|
|
1,216,955
|
|
||||||||||
Asset impairments
|
19,506
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(19,505
|
)
|
—
|
|
—
|
|
—
|
|
||||||||||
Income (loss) from operations
|
341,872
|
|
15,342
|
|
798
|
|
475
|
|
288
|
|
(1,113
|
)
|
19,505
|
|
—
|
|
—
|
|
377,167
|
|
||||||||||
Income (loss) before income taxes
|
219,003
|
|
15,342
|
|
798
|
|
475
|
|
288
|
|
(1,113
|
)
|
19,505
|
|
—
|
|
—
|
|
254,298
|
|
||||||||||
Benefit (provision) for income taxes
|
(5,561
|
)
|
(5,926
|
)
|
(301
|
)
|
(122
|
)
|
—
|
|
426
|
|
(7,094
|
)
|
834
|
|
(73,028
|
)
|
(90,772
|
)
|
||||||||||
Net income (loss)
|
$
|
213,442
|
|
$
|
9,416
|
|
$
|
497
|
|
$
|
353
|
|
$
|
288
|
|
$
|
(687
|
)
|
$
|
12,411
|
|
$
|
834
|
|
$
|
(73,028
|
)
|
$
|
163,526
|
|
Less: Adjusted earnings (loss) allocated to participating securities
|
7,511
|
|
334
|
|
18
|
|
13
|
|
10
|
|
(24
|
)
|
441
|
|
30
|
|
(2,595
|
)
|
5,738
|
|
||||||||||
Adjusted net income (loss) available to diluted common shares
|
$
|
205,931
|
|
$
|
9,081
|
|
$
|
479
|
|
$
|
340
|
|
$
|
278
|
|
$
|
(663
|
)
|
$
|
11,971
|
|
$
|
804
|
|
$
|
(70,433
|
)
|
$
|
157,788
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Diluted income (loss) per common share
|
$
|
10.08
|
|
$
|
0.45
|
|
$
|
0.03
|
|
$
|
0.01
|
|
$
|
0.01
|
|
$
|
(0.03
|
)
|
$
|
0.59
|
|
$
|
0.04
|
|
$
|
(3.45
|
)
|
$
|
7.73
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Effective tax rate %
|
2.5
|
|
|
|
|
|
|
|
|
|
35.7
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
SG&A as % Gross Profit:
|
74.5
|
|
|
|
|
|
|
|
|
|
73.7
|
|
||||||||||||||||||
Operating Margin %:
|
3.1
|
|
|
|
|
|
|
|
|
|
3.4
|
|
||||||||||||||||||
Pretax Margin %:
|
2.0
|
|
|
|
|
|
|
|
|
|
2.3
|
|
||||||||||||||||||
2017 v. 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Same Store Finance, insurance, and other revenues, net
(1)
|
$
|
423,801
|
|
$
|
6,550
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
430,351
|
|
Same Store SG&A
(1)
|
1,209,171
|
|
(8,792
|
)
|
(798
|
)
|
(475
|
)
|
(288
|
)
|
1,113
|
|
—
|
|
—
|
|
—
|
|
1,199,931
|
|
||||||||||
Same Store SG&A as % Gross Profit:
(1)
|
74.3
|
|
|
|
|
|
|
|
|
|
73.5
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Same Store income (loss) from operations
(1)
|
$
|
343,369
|
|
$
|
15,341
|
|
$
|
798
|
|
$
|
475
|
|
$
|
288
|
|
$
|
(1,113
|
)
|
$
|
17,811
|
|
$
|
—
|
|
$
|
—
|
|
$
|
376,969
|
|
Same Store Operating Margin %:
(1)
|
3.1
|
|
|
|
|
|
|
|
|
|
3.4
|
|
||||||||||||||||||
2017 v. 2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Same Store Finance, insurance, and other revenues, net
(1)
|
$
|
417,905
|
|
$
|
6,550
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
424,455
|
|
Same Store SG&A
(1)
|
1,179,996
|
|
$
|
(8,792
|
)
|
$
|
(798
|
)
|
$
|
(475
|
)
|
$
|
(288
|
)
|
$
|
1,113
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
1,170,756
|
|
||
Same Store SG&A as % Gross Profit:
(1)
|
73.8
|
|
|
|
|
|
|
|
|
|
72.9
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Same Store income (loss) from operations
(3)
|
$
|
344,932
|
|
$
|
15,342
|
|
$
|
798
|
|
$
|
475
|
|
$
|
288
|
|
$
|
(1,113
|
)
|
$
|
19,505
|
|
$
|
—
|
|
$
|
—
|
|
$
|
380,227
|
|
Same Store Operating Margin %:
(1)
|
3.2
|
|
|
|
|
|
|
|
|
|
3.5
|
|
(1)
|
As further described in “Results of Operations”, Same Store results for 2017 that are compared to 2018 differ from those used in comparison to 2016.
|
(2)
|
For the year ended December 31, 2017, we recognized a net pre-tax gain related to a settlement with an OEM of $1.8 million.
|
|
U.S. Adjustments for
|
|||||||||||||||||||||||
|
Year Ended December 31, 2016
|
|||||||||||||||||||||||
|
U.S. GAAP
|
Catastrophic events
|
Gain (loss) on real estate and dealership transactions
|
Severance costs
|
Acquisition costs
|
Legal settlements
|
Non-cash asset impairment
|
Non-GAAP Adjusted
|
||||||||||||||||
Selling, general and administrative expenses
|
$
|
965,139
|
|
$
|
(5,873
|
)
|
$
|
2,838
|
|
$
|
(1,837
|
)
|
$
|
(30
|
)
|
$
|
11,671
|
|
$
|
—
|
|
$
|
971,908
|
|
Asset impairments
|
21,794
|
|
—
|
|
(124
|
)
|
—
|
|
—
|
|
—
|
|
(21,670
|
)
|
—
|
|
||||||||
Income (loss) from operations
|
324,944
|
|
5,873
|
|
(2,714
|
)
|
1,837
|
|
30
|
|
(11,671
|
)
|
21,670
|
|
339,969
|
|
||||||||
Income (loss) before income taxes
|
222,180
|
|
5,873
|
|
(2,714
|
)
|
1,837
|
|
30
|
|
(11,671
|
)
|
21,670
|
|
237,205
|
|
||||||||
Benefit (provision) for income taxes
|
(82,541
|
)
|
(2,207
|
)
|
1,015
|
|
(686
|
)
|
(11
|
)
|
4,359
|
|
(8,126
|
)
|
(88,197
|
)
|
||||||||
Net income (loss)
|
$
|
139,639
|
|
$
|
3,666
|
|
$
|
(1,699
|
)
|
$
|
1,151
|
|
$
|
19
|
|
$
|
(7,312
|
)
|
$
|
13,544
|
|
$
|
149,008
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
SG&A as % Gross Profit:
|
71.2
|
|
|
|
|
|
|
|
71.7
|
|
||||||||||||||
Operating Margin %:
|
3.7
|
|
|
|
|
|
|
|
3.9
|
|
||||||||||||||
Pretax Margin %:
|
2.5
|
|
|
|
|
|
|
|
2.7
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||
Same Store SG&A
|
$
|
955,108
|
|
$
|
(5,873
|
)
|
$
|
(384
|
)
|
$
|
(1,837
|
)
|
$
|
(30
|
)
|
$
|
9,864
|
|
$
|
—
|
|
$
|
956,848
|
|
Same Store SG&A as % Gross Profit:
|
71.2
|
|
|
|
|
|
|
|
71.4
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||
Same Store income from operations
|
$
|
321,658
|
|
$
|
5,873
|
|
$
|
385
|
|
$
|
1,837
|
|
$
|
30
|
|
$
|
(9,864
|
)
|
$
|
21,671
|
|
$
|
341,590
|
|
Same Store Operating Margin %:
|
3.7
|
|
|
|
|
|
|
|
4.0
|
|
|
U.K. Adjustments for
|
|||||||||||||||||
|
Year Ended December 31, 2016
|
|||||||||||||||||
|
U.S. GAAP
|
Gain (loss) on real estate and dealership transactions
|
Severance costs
|
Acquisition costs
|
Non-cash asset impairment
|
Non-GAAP Adjusted
|
||||||||||||
Selling, general and administrative expenses
|
$
|
158,636
|
|
$
|
(223
|
)
|
$
|
(122
|
)
|
$
|
(561
|
)
|
$
|
—
|
|
$
|
157,730
|
|
Asset impairments
|
201
|
|
(168
|
)
|
—
|
|
—
|
|
(33
|
)
|
—
|
|
||||||
Income from operations
|
27,551
|
|
391
|
|
122
|
|
561
|
|
33
|
|
28,658
|
|
||||||
Income before income taxes
|
18,132
|
|
391
|
|
122
|
|
561
|
|
33
|
|
19,239
|
|
||||||
Provision for income taxes
|
(3,697
|
)
|
(78
|
)
|
(24
|
)
|
—
|
|
(7
|
)
|
(3,806
|
)
|
||||||
Net income
|
$
|
14,435
|
|
$
|
313
|
|
$
|
98
|
|
$
|
561
|
|
$
|
26
|
|
$
|
15,433
|
|
|
|
|
|
|
|
|
||||||||||||
SG&A as % Gross Profit:
|
82.2
|
|
|
|
|
|
81.7
|
|
||||||||||
Operating Margin %:
|
1.6
|
|
|
|
|
|
1.7
|
|
||||||||||
Pretax Margin %:
|
1.1
|
|
|
|
|
|
1.1
|
|
||||||||||
|
|
|
|
|
|
|
||||||||||||
Same Store SG&A
|
$
|
150,626
|
|
$
|
(61
|
)
|
$
|
(122
|
)
|
$
|
(561
|
)
|
$
|
—
|
|
$
|
149,882
|
|
Same Store SG&A as % Gross Profit:
|
80.1
|
|
|
|
|
|
79.7
|
|
||||||||||
|
|
|
|
|
|
|
||||||||||||
Same Store income from operations
|
$
|
30,875
|
|
$
|
229
|
|
$
|
122
|
|
$
|
561
|
|
$
|
33
|
|
$
|
31,820
|
|
Same Store Operating Margin %:
|
1.8
|
|
|
|
|
|
1.9
|
|
|
Brazil Adjustments for
|
|||||||||||||||||
|
Year Ended December 31, 2016
|
|||||||||||||||||
|
U.S. GAAP
|
Gain (loss) on real estate and dealership transactions
|
Foreign transaction tax
|
Foreign deferred income tax benefit
|
Non-cash asset impairment
|
Non-GAAP Adjusted
|
||||||||||||
Selling, general and administrative expenses
|
$
|
46,988
|
|
$
|
(372
|
)
|
$
|
(274
|
)
|
$
|
—
|
|
$
|
—
|
|
$
|
46,342
|
|
Asset impairments
|
10,843
|
|
(423
|
)
|
—
|
|
—
|
|
(10,420
|
)
|
—
|
|
||||||
Income (loss) from operations
|
(12,261
|
)
|
795
|
|
274
|
|
—
|
|
10,420
|
|
(772
|
)
|
||||||
Income (loss) before income taxes
|
(12,941
|
)
|
795
|
|
274
|
|
—
|
|
10,420
|
|
(1,452
|
)
|
||||||
Benefit (provision) for income taxes
|
5,932
|
|
—
|
|
—
|
|
(1,686
|
)
|
(3,543
|
)
|
703
|
|
||||||
Net income (loss)
|
$
|
(7,009
|
)
|
$
|
795
|
|
$
|
274
|
|
$
|
(1,686
|
)
|
$
|
6,877
|
|
$
|
(749
|
)
|
|
|
|
|
|
|
|
||||||||||||
SG&A as % Gross Profit:
|
100.5
|
|
|
|
|
|
99.2
|
|
||||||||||
Operating Margin %:
|
(2.9
|
)
|
|
|
|
|
(0.2
|
)
|
||||||||||
Pretax Margin %:
|
(3.0
|
)
|
|
|
|
|
(0.3
|
)
|
||||||||||
|
|
|
|
|
|
|
||||||||||||
Same Store SG&A
|
$
|
40,315
|
|
$
|
—
|
|
$
|
(274
|
)
|
$
|
—
|
|
$
|
—
|
|
$
|
40,041
|
|
Same Store SG&A as % Gross Profit:
|
95.2
|
|
|
|
|
|
94.6
|
|
||||||||||
|
|
|
|
|
|
|
||||||||||||
Same Store income (loss) from operations
|
$
|
(9,590
|
)
|
$
|
—
|
|
$
|
274
|
|
$
|
—
|
|
$
|
10,420
|
|
$
|
1,104
|
|
Same Store Operating Margin %:
|
(2.4
|
)
|
|
|
|
|
0.3
|
|
|
Consolidated Adjustments for
|
|||||||||||||||||||||||||||||
|
Year Ended December 31, 2016
|
|||||||||||||||||||||||||||||
|
U.S. GAAP
|
Catastrophic events
|
Gain (loss) on real estate and dealership transactions
|
Severance costs
|
Acquisition costs
|
Legal settlements
(1)
|
Foreign transaction tax
|
Foreign deferred income tax benefit
|
Non-cash asset impairment
|
Non-GAAP Adjusted
|
||||||||||||||||||||
Selling, general and administrative expenses
|
$
|
1,170,763
|
|
$
|
(5,873
|
)
|
$
|
2,243
|
|
$
|
(1,959
|
)
|
$
|
(591
|
)
|
$
|
11,671
|
|
$
|
(274
|
)
|
$
|
—
|
|
$
|
—
|
|
$
|
1,175,980
|
|
Asset impairments
|
32,838
|
|
—
|
|
(714
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(32,124
|
)
|
—
|
|
||||||||||
Income (loss) from operations
|
340,234
|
|
5,873
|
|
(1,529
|
)
|
1,959
|
|
591
|
|
(11,671
|
)
|
274
|
|
—
|
|
32,124
|
|
367,855
|
|
||||||||||
Income (loss) before income taxes
|
227,371
|
|
5,873
|
|
(1,529
|
)
|
1,959
|
|
591
|
|
(11,671
|
)
|
274
|
|
—
|
|
32,124
|
|
254,992
|
|
||||||||||
Benefit (provision) for income taxes
|
(80,306
|
)
|
(2,207
|
)
|
937
|
|
(710
|
)
|
(11
|
)
|
4,359
|
|
—
|
|
(1,686
|
)
|
(11,676
|
)
|
(91,300
|
)
|
||||||||||
Net income (loss)
|
$
|
147,065
|
|
$
|
3,666
|
|
$
|
(592
|
)
|
$
|
1,249
|
|
$
|
580
|
|
$
|
(7,312
|
)
|
$
|
274
|
|
$
|
(1,686
|
)
|
$
|
20,448
|
|
$
|
163,692
|
|
Less: Adjusted earnings (loss) allocated to participating securities
|
5,869
|
|
147
|
|
(24
|
)
|
50
|
|
23
|
|
(293
|
)
|
11
|
|
(68
|
)
|
822
|
|
6,537
|
|
||||||||||
Adjusted net income (loss) available to diluted common shares
|
$
|
141,196
|
|
$
|
3,519
|
|
$
|
(568
|
)
|
$
|
1,199
|
|
$
|
557
|
|
$
|
(7,019
|
)
|
$
|
263
|
|
$
|
(1,618
|
)
|
$
|
19,626
|
|
$
|
157,155
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Diluted income (loss) per common share
|
$
|
6.67
|
|
$
|
0.17
|
|
$
|
(0.03
|
)
|
$
|
0.05
|
|
$
|
0.02
|
|
$
|
(0.33
|
)
|
$
|
0.01
|
|
$
|
(0.07
|
)
|
$
|
0.93
|
|
$
|
7.42
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Effective tax rate
|
35.3
|
|
|
|
|
|
|
|
|
|
35.8
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
SG&A as % Gross Profit:
|
73.4
|
|
|
|
|
|
|
|
|
|
73.7
|
|
||||||||||||||||||
Operating Margin %:
|
3.1
|
|
|
|
|
|
|
|
|
|
3.4
|
|
||||||||||||||||||
Pretax Margin %:
|
2.1
|
|
|
|
|
|
|
|
|
|
2.3
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Same Store SG&A
|
$
|
1,146,049
|
|
$
|
(5,873
|
)
|
$
|
(446
|
)
|
$
|
(1,959
|
)
|
$
|
(591
|
)
|
$
|
9,864
|
|
$
|
(274
|
)
|
$
|
—
|
|
$
|
—
|
|
$
|
1,146,770
|
|
Same Store SG&A as % Gross Profit:
|
72.9
|
|
|
|
|
|
|
|
|
|
73.0
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Same Store income from operations
|
$
|
342,943
|
|
$
|
5,873
|
|
$
|
614
|
|
$
|
1,959
|
|
$
|
591
|
|
$
|
(9,864
|
)
|
$
|
274
|
|
$
|
—
|
|
$
|
32,124
|
|
$
|
374,514
|
|
Same Store Operating Margin %
|
3.2
|
|
|
|
|
|
|
|
|
|
3.5
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
||||||
Net cash provided by (used in) operating activities
|
|
$
|
269,978
|
|
|
$
|
196,515
|
|
|
$
|
384,097
|
|
Change in floorplan notes payable-credit facilities, excluding floorplan offset account and net acquisition and disposition related activity
|
|
62,209
|
|
|
88,742
|
|
|
(113,116
|
)
|
|||
Change in floorplan notes payable-manufacturer affiliates associated with net acquisition and disposition related activity
|
|
(22,400
|
)
|
|
(3,000
|
)
|
|
—
|
|
|||
Adjusted net cash provided by (used in) operating activities
|
|
$
|
309,787
|
|
|
$
|
282,257
|
|
|
$
|
270,981
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
||||||
Net cash provided by (used in) investing activities
|
|
$
|
(168,001
|
)
|
|
$
|
(312,598
|
)
|
|
$
|
(174,040
|
)
|
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
|
)
|
|
—
|
|
|
(16,599
|
)
|
|||
Adjusted net cash provided by (used in) investing activities
|
|
$
|
(175,962
|
)
|
|
$
|
(297,865
|
)
|
|
$
|
(190,639
|
)
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
||||||
Net cash provided by (used in) financing activities
|
|
$
|
(109,543
|
)
|
|
$
|
121,476
|
|
|
$
|
(205,007
|
)
|
Change in net borrowings and repayments on floorplan notes payable-credit facilities, excluding net activity associated with our floorplan offset account
|
|
(31,848
|
)
|
|
(100,475
|
)
|
|
129,715
|
|
|||
Adjusted net cash provided by (used in) financing activities
|
|
$
|
(141,391
|
)
|
|
$
|
21,001
|
|
|
$
|
(75,292
|
)
|
|
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
2025
|
|
2026
|
|
2027
|
|
2028
|
|
2029
|
|
2030
|
|
||||||||||||||||||||||||||
Average notional amount in effect during the period
|
|
$
|
805
|
|
|
$
|
901
|
|
|
$
|
549
|
|
|
$
|
418
|
|
|
$
|
154
|
|
|
$
|
132
|
|
|
$
|
125
|
|
|
$
|
125
|
|
|
$
|
100
|
|
|
$
|
100
|
|
|
$
|
100
|
|
|
$
|
100
|
|
|
$
|
100
|
|
|
Weighted average interest rate during the period
|
|
2.62
|
%
|
|
2.30
|
%
|
|
2.21
|
%
|
|
1.77
|
%
|
|
1.77
|
%
|
|
1.82
|
%
|
|
1.81
|
%
|
|
1.81
|
%
|
|
1.85
|
%
|
|
1.85
|
%
|
|
1.85
|
%
|
|
1.85
|
%
|
|
1.85
|
%
|
|
Name
|
Age
|
Position
|
Years with Group 1
|
Years of Automotive Experience
|
Earl J. Hesterberg
|
65
|
President and Chief Executive Officer
|
13.5
|
44
|
Daryl A. Kenningham
|
54
|
President, U.S. Operations
|
7.5
|
31
|
John C. Rickel
|
57
|
Senior Vice President and Chief Financial Officer
|
13
|
35
|
Frank Grese Jr.
|
66
|
Senior Vice President of Human Resources, Training, and Operations Support
|
14
|
44
|
Peter C. DeLongchamps
|
58
|
Senior Vice President, Manufacturer Relations, Financial Services and Public Affairs
|
14.5
|
36
|
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)
|
|
|
—
|
|
Certificate of Designation of Series A Junior Participating Preferred Stock (incorporated by reference to Exhibit 3.2 of Group 1’s Quarterly Report on Form 10-Q (File No. 001-13461) for the period ended March 31, 2007)
|
|
|
—
|
|
Third Amended and Restated Bylaws of Group 1 Automotive, Inc. (incorporated by reference to Exhibit 3.2 of Group 1 Automotive, Inc.’s Current Report on Form 8-K (File No. 001-13461) filed April 6, 2017)
|
|
|
—
|
|
Specimen Common Stock Certificate (incorporated by reference to Exhibit 4.1 of Group 1 Automotive, Inc.’s Registration Statement on Form S-1 (Registration No. 333-29893))
|
|
|
—
|
|
Indenture, dated as of June 2, 2014, by and among Group 1 Automotive, Inc., the guarantors party thereto and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.1 to Group 1 Automotive, Inc.’s Current Report on Form 8-K (File No. 001-13461) filed June 2, 2014)
|
|
|
—
|
|
Form of 5.000% Senior Notes due 2022 (included as Exhibit A to Exhibit 4.2)
|
|
|
—
|
|
Registration Rights Agreement, dated as of June 2, 2014, by and among Group 1 Automotive, Inc., the guarantors party thereto and J.P. Morgan Securities LLC, as representative of the initial purchasers named therein (incorporated by reference to Exhibit 4.3 to Group 1 Automotive, Inc.’s Current Report on Form 8-K (File No. 001-13461) filed June 2, 2014)
|
|
|
—
|
|
Registration Rights Agreement, dated as of September 9, 2014, by and among Group 1 Automotive, Inc., the guarantors party thereto and J.P. Morgan Securities LLC, as representative of the initial purchasers named therein (incorporated by reference to Exhibit 4.1 to Group 1 Automotive, Inc.’s Current Report on Form 8-K (File No. 001-13461) filed September 11, 2014)
|
|
|
—
|
|
Indenture, dated as of December 8, 2015, by and among Group 1 Automotive, Inc., the guarantors party thereto and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.1 to Group 1 Automotive, Inc.’s Current Report on Form 8-K (File No. 001-13461) filed December 9, 2015)
|
|
|
—
|
|
Form of 5.250% Senior Notes due 2023 (incorporated by reference to Exhibit 4.2 to Group 1 Automotive, Inc.’s Current Report on Form 8-K (File No. 001-13461) filed December 9, 2015)
|
|
|
—
|
|
Ninth Amended and Restated Revolving Credit Agreement, dated effective as of June 20, 2013, among Group 1 Automotive, Inc., the Subsidiary Borrowers listed therein, the Lenders listed therein, JPMorgan Chase Bank, N.A., as Administrative Agent, Comerica Bank, as Floor Plan Agent and Bank of America, N.A., as Syndication Agent (incorporated by reference to Exhibit 10.1 of Group 1 Automotive, Inc.’s Current Report on Form 8-K (File No. 001-13461) filed June 26, 2013)
|
Exhibit
Number
|
|
Description
|
||
|
—
|
|
Stockholders Agreement dated as of February 28, 2013, by and among Group 1 Automotive, Inc. and former shareholders of UAB Motors Participações S.A. named therein (incorporated by reference to Exhibit 10.1 of Group 1 Automotive, Inc.’s Current Report on Form 8-K (File No. 001-13461) filed March 5, 2013)
|
|
|
—
|
|
Master Assignment and Acceptance Agreement, dated effective December 11, 2012, between JPMorgan Chase Bank, N.A., Comerica Bank, and Bank of America, N.A., each, an Assignor, and VW Credit, Inc., as Assignee, pursuant to the terms of the Eighth Amended and Restated Revolving Credit Agreement, dated effective as of July 1, 2011, as amended (incorporated by reference to Exhibit 10.3 of Group 1 Automotive, Inc.’s Annual Report on Form 10-K (File No. 001-13461) for the year ended December 31, 2012)
|
|
|
—
|
|
Loan Facility dated as of October 3, 2008 by and between Chandlers Garage Holdings Limited and BMW Financial Services (GB) Limited. (incorporated by reference to Exhibit 10.2 of Group 1 Automotive, Inc.’s Quarterly Report on Form 10-Q (File No. 001-13461) for the quarter ended September 30, 2008)
|
|
|
—
|
|
Form of Ford Motor Credit Company Automotive Wholesale Plan Application for Wholesale Financing and Security Agreement (incorporated by reference to Exhibit 10.2 of Group 1 Automotive, Inc.’s Quarterly Report on Form 10-Q (File No. 001-13461) for the quarter ended June 30, 2003)
|
|
|
—
|
|
Supplemental Terms and Conditions dated September 4, 1997 between Ford Motor Company and Group 1 Automotive, Inc. (incorporated by reference to Exhibit 10.16 of Group 1 Automotive, Inc.’s Registration Statement on Form S-1 Registration No. 333-29893)
|
|
|
—
|
|
Form of Agreement between Toyota Motor Sales, U.S.A., Inc. and Group 1 Automotive, Inc. (incorporated by reference to Exhibit 10.12 of Group 1 Automotive, Inc.’s Registration Statement on Form S-1 Registration No. 333-29893)
|
|
|
—
|
|
Toyota Dealer Agreement effective April 5, 1993 between Gulf States Toyota, Inc. and Southwest Toyota, Inc. (incorporated by reference to Exhibit 10.17 of Group 1 Automotive, Inc.’s Registration Statement on Form S-1 Registration No. 333-29893)
|
|
|
—
|
|
Lexus Dealer Agreement effective August 21, 1995 between Lexus, a division of Toyota Motor Sales, U.S.A., Inc. and SMC Luxury Cars, Inc. (incorporated by reference to Exhibit 10.18 of Group 1 Automotive, Inc.’s Registration Statement on Form S-1 Registration No. 333-29893)
|
|
|
—
|
|
Form of General Motors Corporation U.S.A. Sales and Service Agreement (incorporated by reference to Exhibit 10.25 of Group 1 Automotive, Inc.’s Registration Statement on Form S-1 Registration No. 333-29893)
|
|
|
—
|
|
Form of Ford Motor Company Sales and Service Agreement (incorporated by reference to Exhibit 10.38 of Group 1 Automotive, Inc.’s Annual Report on Form 10-K (File No. 001-13461) for the year ended December 31, 1998)
|
|
|
—
|
|
Form of Supplemental Agreement to General Motors Corporation Dealer Sales and Service Agreement (Incorporated by reference to Exhibit 10.13 of Group 1 Automotive, Inc.’s Registration Statement on Form S-1 Registration No. 333-29893)
|
Exhibit
Number
|
|
Description
|
||
|
—
|
|
Form of Chrysler Corporation Sales and Service Agreement (incorporated by reference to Exhibit 10.39 of Group 1 Automotive, Inc.’s Annual Report on Form 10-K (File No. 001-13461) for the year ended December 31, 1998)
|
|
|
—
|
|
Form of Nissan Division of Nissan North America, Inc. Dealer Sales and Service Agreement (incorporated by reference to Exhibit 10.25 of Group 1 Automotive, Inc.’s Annual Report on Form 10-K (File No. 001-13461) for the year ended December 31, 2003)
|
|
10.15
*
|
|
—
|
|
Policy on Payment or Recoupment of Performance-Based Cash Bonuses and Performance-Based Stock Bonuses in the Event of Certain Restatement (incorporated by reference to the section titled “Policy on Payment or Recoupment of Performance-Based Cash Bonuses and Performance-Based Stock Bonuses in the Event of Certain Restatement” in Item 5.02 of Group 1 Automotive, Inc.’s Current Report on Form 8-K (File No. 13461) filed November 16, 2009)
|
10.16
*
|
|
—
|
|
Form of Indemnification Agreement of Group 1 Automotive, Inc. (incorporated by reference to Exhibit 10.1 of Group 1 Automotive, Inc.’s Current Report on Form 8-K (File No. 001-13461) filed November 13, 2007)
|
10.17
*
|
|
—
|
|
Group 1 Automotive, Inc. 2018 Short Term Incentive Plan Guidelines (incorporated by reference to Exhibit 10.1 to Group 1 Automotive, Inc.'s Current Report on Form 8-K (File No. 001-134561) filed March 3, 2017)
|
|
—
|
|
Officer’s Terms of Engagement and Guarantees between UAB Motors Participações S.A. and Lincoln da Cunha Pereira Filho dated as of February 28, 2013 (incorporated by reference to Exhibit 10.3 of Group 1 Automotive, Inc.’s Quarterly Report on Form 10-Q (File No. 001-13461) for the quarter ended March 31, 2013)
|
|
|
—
|
|
Group 1 Automotive, Inc. Deferred Compensation Plan, as Amended and Restated, effective January 1, 2008 (incorporated by reference to Exhibit 10.28 of Group 1 Automotive, Inc.’s Annual Report on Form 10-K (File No. 001-13461) for the year ended December 31, 2007)
|
|
|
—
|
|
First Amendment to Group 1 Automotive, Inc. Deferred Compensation Plan, as Amended and Restated, effective January 1, 2008 (incorporated by reference to Exhibit 10.25 of Group 1 Automotive, Inc.’s Annual Report on Form 10-K (File No. 001-13461) for the year ended December 31, 2008)
|
|
|
—
|
|
Second Amendment to Group 1 Automotive, Inc. Deferred Compensation Plan, as Amended and Restated, effective January 1, 2008 (incorporated by reference to Exhibit 10.1 of Group 1 Automotive, Inc.’s Quarterly Report on Form 10-Q (File No. 001-13461) for the quarter ended June 30, 2009)
|
|
10.22
*
|
|
—
|
|
Third Amendment to Group 1 Automotive, Inc. Deferred Compensation Plan, as Amended and Restated, effective January 1, 2008 (Incorporated by reference to Exhibit 10.1 of Group 1 Automotive, Inc.’s Current Report on Form 8-K (File No. 001-13461) filed November 15, 2010)
|
|
—
|
|
Fourth Amendment to Group 1 Automotive, Inc. Deferred Compensation Plan, as Amended and Restated, signed August 15, 2018 (incorporated by reference to Exhibit 10.1 of Group 1 Automotive, Inc.’s Quarterly Report on Form 10-Q (File No. 001-13451) for the quarter ended September 30, 2018)
|
|
10.24
*
|
|
—
|
|
Group 1 Automotive, Inc. 2007 Long Term Incentive Plan (As Amended and Restated Effective as of March 11, 2010) (incorporated by reference to Exhibit A to Group 1 Automotive, Inc.’s definitive proxy statement on Schedule 14A filed on April 8, 2010)
|
10.25
*
|
|
—
|
|
Group 1 Automotive, Inc. 2014 Long Term Incentive Plan (incorporated by reference to Appendix A to Group 1 Automotive, Inc.’s definitive proxy statement on Schedule 14A filed April 10, 2014)
|
10.26
*
|
|
—
|
|
Form of Restricted Stock Agreement for Employees (incorporated by reference to Exhibit 10.2 of Group 1 Automotive, Inc.’s Current Report on Form 8-K (File No. 001-13461) filed March 16, 2005)
|
10.27
*
|
|
—
|
|
Form of Senior Executive Officer Restricted Stock Agreement (incorporated by reference to Exhibit 10.3 of Group 1 Automotive, Inc.’s Current Report on Form 8-K (File No. 001-13461) filed September 9, 2010)
|
10.28
*
|
|
—
|
|
Form of Restricted Stock Agreement with Qualified Retirement Provisions (incorporated by reference to Exhibit 10.27 of Group 1 Automotive, Inc.’s Annual Report on Form 10-K (File No. 001-13461) for the year ended December 31, 2011)
|
10.29
*
|
|
—
|
|
Form of Phantom Stock Agreement for Employees (incorporated by reference to Exhibit 10.3 of Group 1 Automotive, Inc.’s Current Report on Form 8-K (File No. 001-13461) filed March 16, 2005)
|
Exhibit
Number
|
|
Description
|
||
10.30
*
|
|
—
|
|
Form of Phantom Stock Agreement for Non-Employee Directors (incorporated by reference to Exhibit 10.36 of Group 1 Automotive, Inc.’s Annual Report on Form 10-K (File No. 001-13461) for the year ended December 31, 2009)
|
10.31
*
|
|
—
|
|
Form of Phantom Stock Agreement for Non-Employee Directors (incorporated by reference to Exhibit 10.5 of Group 1 Automotive, Inc.’s Current Report on Form 8-K (File No. 001-13461) filed March 16, 2005)
|
10.32
*
|
|
|
|
Form of Restricted Stock Agreement with Qualified Retirement Provisions (incorporated by reference to Exhibit 10.1 to Group 1 Automotive, Inc.’s Current Report on Form 8K (File No. 001-13461) filed May 22, 2018)
|
10.33
†*
|
|
|
|
Form of Phantom Stock Agreement (Cash Settlement) for Non-Employee Directors
|
10.34
†*
|
|
|
|
Form of Restricted Stock Agreement for Non-Employee Directors
|
10.35
*
|
|
—
|
|
Form of Senior Executive Restricted Stock Agreement (incorporated by reference to Exhibit 10.3 of Group 1 Automotive, Inc.’s Quarterly Report on Form 10-Q (File No. 001-13461) for the quarter ended September 30, 2014)
|
10.36
*
|
|
—
|
|
Form of Restricted Stock Agreement with Qualified Retirement Provisions (incorporated by reference to Exhibit 10.4 of Group 1 Automotive, Inc.’s Quarterly Report on Form 10-Q (File No. 001-13461) for the quarter ended September 30, 2014)
|
10.37
*
|
|
—
|
|
Form of Restricted Stock Agreement for Employees (incorporated by reference to Exhibit 10.5 of Group 1 Automotive, Inc.’s Quarterly Report on Form 10-Q (File No. 001-13461) for the quarter ended September 30, 2014)
|
10.38
*
|
|
—
|
|
Form of Phantom Stock Agreement for Non-Employee Directors (incorporated by reference to Exhibit 10.7 of Group 1 Automotive, Inc.’s Quarterly Report on Form 10-Q (File No. 001-13461) for the quarter ended September 30, 2014)
|
10.39
*
|
|
—
|
|
Form of Performance-Based Restricted Stock Agreement (incorporated by reference to Exhibit 10.8 of Group 1 Automotive, Inc.’s Quarterly Report on Form 10-Q (File No. 001-13461) for the quarter ended September 30, 2014)
|
10.40
*
|
|
—
|
|
Amendment to Employment Agreement dated effective as of May 17, 2018 between Group 1 Automotive, Inc. and Earl J. Hesterberg (incorporated by reference to Exhibit 10.2 to Group 1 Automotive, Inc.’s Current Report on Form 8-K (File No. 001-13461) filed May 22, 2018)
|
10.41
*
|
|
—
|
|
Employment Agreement dated effective May 19, 2015 between Group 1 Automotive, Inc. and Earl J. Hesterberg (incorporated by reference to Exhibit 10.1 to Group 1 Automotive, Inc.’s Current Report on Form 8-K (File No. 001-13461) filed May 22, 2015)
|
10.42
*
|
|
—
|
|
Non-Compete Agreement dated effective May 19, 2015 between Group 1 Automotive, Inc. and Earl J. Hesterberg (incorporated by reference to Exhibit 10.2 to Group 1 Automotive, Inc.’s Current Report on Form 8-K (File No. 001-13461) filed May 22, 2015)
|
|
—
|
|
Transition Agreement dated December 18, 2015 between Group 1 Automotive, Inc. and J. Brooks O’Hara (incorporated by reference to Exhibit 10.41 of Group 1 Automotive, Inc.’s Annual Report on Form 10-K (File No. 001-13461) for the year ended December 31, 2015)
|
|
10.44
*
|
|
—
|
|
Employment Agreement dated December 18, 2015 between Group 1 Automotive, Inc. and J. Brooks O’Hara (incorporated by reference to Exhibit 10.42 of Group 1 Automotive, Inc.’s Annual Report on Form 10-K (File No. 001-13461) for the year ended December 31, 2015)
|
10.45
*
|
|
—
|
|
Employment Agreement dated January 1, 2009 between Group 1 Automotive, Inc. and John C. Rickel (incorporated by reference to Exhibit 10.1 of Group 1 Automotive, Inc.’s Current Report on Form 8-K (File No. 001-13461) filed March 17, 2009)
|
10.46
*
|
|
—
|
|
Incentive Compensation and Non-Compete Agreement dated June 2, 2006 between Group 1 Automotive, Inc. and John C. Rickel (incorporated by reference to Exhibit 10.2 of Group 1 Automotive, Inc.’s Current Report on Form 8-K (File No. 001-13461) filed June 7, 2006)
|
Exhibit
Number
|
|
Description
|
||
10.47
*
|
|
—
|
|
Employment Agreement dated effective as of December 1, 2009 between Group 1 Automotive, Inc. and Darryl M. Burman (incorporated by reference to Exhibit 10.1 of Group 1 Automotive, Inc.’s Current Report on Form 8-K (File No. 001-13461) filed November 16, 2009)
|
10.48
*
|
|
—
|
|
Incentive Compensation and Non-Compete Agreement dated December 1, 2006 between Group 1 Automotive, Inc. and Darryl M. Burman (incorporated by reference to Exhibit 10.2 of Group 1 Automotive, Inc.’s Current Report on Form 8-K/A (File No. 001-13461) filed December 1, 2006)
|
10.49
*
|
|
—
|
|
Group 1 Automotive, Inc. Aircraft Usage Policy (incorporated by reference to Exhibit 10.41 to Group 1 Automotive, Inc.’s Annual Report on Form 10-K (File No. 001-13461) for the year ended December 31, 2017.)
|
|
—
|
|
Group 1 Automotive, Inc. Subsidiary List
|
|
|
—
|
|
Consent of Ernst & Young LLP
|
|
|
—
|
|
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 herewith
|
|||
*
|
Management contract or compensatory plan or arrangement
|
|||
**
|
Furnished herewith
|
|
Group 1 Automotive, Inc.
|
||
|
|
|
|
|
By:
|
|
/s/ Earl J. Hesterberg
|
|
|
|
Earl J. Hesterberg
|
|
|
|
President and Chief Executive Officer
|
Signature
|
|
Title
|
|
|
|
/s/ Earl J. Hesterberg
|
|
President and Chief Executive Officer and Director
|
Earl J. Hesterberg
|
|
(Principal Executive Officer)
|
|
|
|
/s/ John C. Rickel
|
|
Senior Vice President and Chief Financial Officer
|
John C. Rickel
|
|
(Principal Financial and Accounting Officer)
|
|
|
|
/s/ Stephen D. Quinn
|
|
Chairman and Director
|
Stephen D. Quinn
|
|
|
|
|
|
/s/ John L. Adams
|
|
Director
|
John L. Adams
|
|
|
|
|
|
/s/ Carin M. Barth
|
|
Director
|
Carin M. Barth
|
|
|
|
|
|
/s/ Lincoln da Cunha Pereira Filho
|
|
Director
|
Lincoln da Cunha Pereira Filho
|
|
|
|
|
|
/s/ J. Terry Strange
|
|
Director
|
J. Terry Strange
|
|
|
|
|
|
/s/ Charles L. Szews
|
|
Director
|
Charles L. Szews
|
|
|
|
|
|
/s/ Anne Taylor
|
|
Director
|
Anne Taylor
|
|
|
|
|
|
/s/ Max P. Watson, Jr.
|
|
Director
|
Max P. Watson, Jr.
|
|
|
|
|
|
/s/ MaryAnn Wright
|
|
Director
|
MaryAnn Wright
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
REVENUES:
|
|
|
|
|
|
|
||||||
New vehicle retail sales
|
|
$
|
6,181,371
|
|
|
$
|
6,157,531
|
|
|
$
|
6,046,075
|
|
Used vehicle retail sales
|
|
3,166,070
|
|
|
2,798,986
|
|
|
2,757,713
|
|
|||
Used vehicle wholesale sales
|
|
369,575
|
|
|
400,170
|
|
|
401,863
|
|
|||
Parts and service sales
|
|
1,416,889
|
|
|
1,338,032
|
|
|
1,261,307
|
|
|||
Finance, insurance and other, net
|
|
467,453
|
|
|
429,002
|
|
|
420,654
|
|
|||
Total revenues
|
|
11,601,358
|
|
|
11,123,721
|
|
|
10,887,612
|
|
|||
COST OF SALES:
|
|
|
|
|
|
|
||||||
New vehicle retail sales
|
|
5,870,502
|
|
|
5,835,526
|
|
|
5,729,697
|
|
|||
Used vehicle retail sales
|
|
2,980,142
|
|
|
2,621,431
|
|
|
2,575,234
|
|
|||
Used vehicle wholesale sales
|
|
367,880
|
|
|
402,912
|
|
|
406,305
|
|
|||
Parts and service sales
|
|
657,741
|
|
|
618,343
|
|
|
581,307
|
|
|||
Total cost of sales
|
|
9,876,265
|
|
|
9,478,212
|
|
|
9,292,543
|
|
|||
GROSS PROFIT
|
|
1,725,093
|
|
|
1,645,509
|
|
|
1,595,069
|
|
|||
Selling, general and administrative expenses
|
|
1,273,057
|
|
|
1,226,195
|
|
|
1,170,763
|
|
|||
Depreciation and amortization expense
|
|
67,070
|
|
|
57,936
|
|
|
51,234
|
|
|||
Asset impairments
|
|
43,883
|
|
|
19,506
|
|
|
32,838
|
|
|||
INCOME (LOSS) FROM OPERATIONS
|
|
341,083
|
|
|
341,872
|
|
|
340,234
|
|
|||
OTHER INCOME (EXPENSE):
|
|
|
|
|
|
|
||||||
Floorplan interest expense
|
|
(59,882
|
)
|
|
(52,372
|
)
|
|
(44,927
|
)
|
|||
Other interest expense, net
|
|
(75,798
|
)
|
|
(70,497
|
)
|
|
(67,936
|
)
|
|||
INCOME (LOSS) BEFORE INCOME TAXES
|
|
205,403
|
|
|
219,003
|
|
|
227,371
|
|
|||
Benefit (provision) for income taxes
|
|
(47,631
|
)
|
|
(5,561
|
)
|
|
(80,306
|
)
|
|||
NET INCOME (LOSS)
|
|
$
|
157,772
|
|
|
$
|
213,442
|
|
|
$
|
147,065
|
|
BASIC EARNINGS (LOSS) PER SHARE
|
|
$
|
7.83
|
|
|
$
|
10.08
|
|
|
$
|
6.67
|
|
Weighted average common shares outstanding
|
|
19,453
|
|
|
20,420
|
|
|
21,161
|
|
|||
DILUTED EARNINGS (LOSS) PER SHARE
|
|
$
|
7.83
|
|
|
$
|
10.08
|
|
|
$
|
6.67
|
|
Weighted average common shares outstanding
|
|
19,461
|
|
|
20,425
|
|
|
21,170
|
|
|||
CASH DIVIDENDS PER COMMON SHARE
|
|
$
|
1.04
|
|
|
$
|
0.97
|
|
|
$
|
0.91
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
NET INCOME (LOSS)
|
|
$
|
157,772
|
|
|
$
|
213,442
|
|
|
$
|
147,065
|
|
Other comprehensive income (loss), net of taxes:
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustment
|
|
(24,156
|
)
|
|
15,061
|
|
|
(19,081
|
)
|
|||
Net unrealized gain (loss) on interest rate risk management activities:
|
|
|
|
|
|
|
||||||
Unrealized gain (loss) arising during the period, net of tax benefit (provision) of ($2,067), ($620), and ($1,037), respectively
|
|
6,546
|
|
|
1,034
|
|
|
1,728
|
|
|||
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 $1,235, $4,573, and $5,036, respectively
|
|
3,912
|
|
|
7,623
|
|
|
8,393
|
|
|||
Unrealized gain (loss) on interest rate risk management activities, net of tax
|
|
9,760
|
|
|
8,657
|
|
|
10,121
|
|
|||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES
|
|
(14,396
|
)
|
|
23,718
|
|
|
(8,960
|
)
|
|||
COMPREHENSIVE INCOME (LOSS)
|
|
$
|
143,376
|
|
|
$
|
237,160
|
|
|
$
|
138,105
|
|
|
|
Common Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Treasury
Stock
|
|
Total
|
|||||||||||||||
|
|
Shares
|
|
Amount
|
|
||||||||||||||||||||||
BALANCE, December 31, 2015
|
|
25,706
|
|
|
$
|
257
|
|
|
$
|
291,092
|
|
|
$
|
926,169
|
|
|
$
|
(137,984
|
)
|
|
$
|
(161,282
|
)
|
|
$
|
918,252
|
|
Net income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
147,065
|
|
|
—
|
|
|
—
|
|
|
147,065
|
|
||||||
Other comprehensive income (loss), net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,960
|
)
|
|
—
|
|
|
(8,960
|
)
|
||||||
Purchases of treasury stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(129,187
|
)
|
|
(129,187
|
)
|
||||||
Net issuance of treasury shares to employee stock compensation plans
|
|
(43
|
)
|
|
—
|
|
|
(20,963
|
)
|
|
—
|
|
|
—
|
|
|
23,156
|
|
|
2,193
|
|
||||||
Stock-based compensation, including tax effect of $249
|
|
—
|
|
|
—
|
|
|
20,770
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,770
|
|
||||||
Cash dividends, net of estimated forfeitures relative to participating securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19,933
|
)
|
|
—
|
|
|
—
|
|
|
(19,933
|
)
|
||||||
BALANCE, December 31, 2016
|
|
25,663
|
|
|
$
|
257
|
|
|
$
|
290,899
|
|
|
$
|
1,053,301
|
|
|
$
|
(146,944
|
)
|
|
$
|
(267,313
|
)
|
|
$
|
930,200
|
|
Net income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
213,442
|
|
|
—
|
|
|
—
|
|
|
213,442
|
|
||||||
Other comprehensive income (loss), net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,718
|
|
|
—
|
|
|
23,718
|
|
||||||
Purchases of treasury stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(42,084
|
)
|
|
(42,084
|
)
|
||||||
Net issuance of treasury shares to employee stock compensation plans
|
|
(148
|
)
|
|
(2
|
)
|
|
(18,293
|
)
|
|
—
|
|
|
—
|
|
|
18,866
|
|
|
571
|
|
||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
18,855
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,855
|
|
||||||
Cash dividends, net of estimated forfeitures relative to participating securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(20,420
|
)
|
|
—
|
|
|
—
|
|
|
(20,420
|
)
|
||||||
BALANCE, December 31, 2017
|
|
25,515
|
|
|
$
|
255
|
|
|
$
|
291,461
|
|
|
$
|
1,246,323
|
|
|
$
|
(123,226
|
)
|
|
$
|
(290,531
|
)
|
|
$
|
1,124,282
|
|
Net income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
157,772
|
|
|
—
|
|
|
—
|
|
|
157,772
|
|
||||||
Other comprehensive income (loss), net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14,396
|
)
|
|
—
|
|
|
(14,396
|
)
|
||||||
Tax effects reclassified from accumulated other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
150
|
|
|
(150
|
)
|
|
—
|
|
|
—
|
|
||||||
Purchases of treasury stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(183,918
|
)
|
|
(183,918
|
)
|
||||||
Net issuance of treasury shares to employee stock compensation plans
|
|
(21
|
)
|
|
—
|
|
|
(17,352
|
)
|
|
—
|
|
|
—
|
|
|
20,069
|
|
|
2,717
|
|
||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
18,665
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,665
|
|
||||||
Cash dividends, net of estimated forfeitures relative to participating securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(20,825
|
)
|
|
—
|
|
|
—
|
|
|
(20,825
|
)
|
||||||
ASC 606 Cumulative Catch-up
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,397
|
|
|
—
|
|
|
—
|
|
|
11,397
|
|
||||||
BALANCE, December 31, 2018
|
|
25,494
|
|
|
$
|
255
|
|
|
$
|
292,774
|
|
|
$
|
1,394,817
|
|
|
$
|
(137,772
|
)
|
|
$
|
(454,380
|
)
|
|
$
|
1,095,694
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
||||||
Net income (loss)
|
|
$
|
157,772
|
|
|
$
|
213,442
|
|
|
$
|
147,065
|
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
|
|
|
|
|
|
|
||||||
Depreciation and amortization
|
|
67,070
|
|
|
57,936
|
|
|
51,234
|
|
|||
Deferred income taxes
|
|
3,474
|
|
|
(46,063
|
)
|
|
14,162
|
|
|||
Asset impairments
|
|
43,883
|
|
|
19,506
|
|
|
32,838
|
|
|||
Stock-based compensation
|
|
18,714
|
|
|
18,900
|
|
|
21,073
|
|
|||
Amortization of debt discount and issue costs
|
|
3,421
|
|
|
3,661
|
|
|
3,694
|
|
|||
(Gain) loss on disposition of assets
|
|
(26,819
|
)
|
|
(781
|
)
|
|
(2,675
|
)
|
|||
Other
|
|
896
|
|
|
(407
|
)
|
|
1,084
|
|
|||
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
|
|
|
|
|
|
|
||||||
Accounts payable and accrued expenses
|
|
18,447
|
|
|
35,576
|
|
|
76,126
|
|
|||
Accounts and notes receivable
|
|
2,940
|
|
|
(10,674
|
)
|
|
(18,663
|
)
|
|||
Inventories
|
|
(80,612
|
)
|
|
(44,021
|
)
|
|
79,319
|
|
|||
Contracts-in-transit and vehicle receivables
|
|
39,503
|
|
|
(33,484
|
)
|
|
(15,621
|
)
|
|||
Prepaid expenses and other assets
|
|
(16,316
|
)
|
|
(9,299
|
)
|
|
7,484
|
|
|||
Floorplan notes payable — manufacturer affiliates
|
|
38,406
|
|
|
(8,294
|
)
|
|
(12,630
|
)
|
|||
Deferred revenues
|
|
(801
|
)
|
|
517
|
|
|
(393
|
)
|
|||
Net cash provided by (used in) operating activities
|
|
269,978
|
|
|
196,515
|
|
|
384,097
|
|
|||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
||||||
Cash paid for acquisitions, net of cash received
|
|
(135,343
|
)
|
|
(109,081
|
)
|
|
(57,327
|
)
|
|||
Proceeds from disposition of franchises, property and equipment
|
|
107,874
|
|
|
10,708
|
|
|
36,843
|
|
|||
Purchases of property and equipment, including real estate
|
|
(141,033
|
)
|
|
(215,832
|
)
|
|
(156,521
|
)
|
|||
Other
|
|
501
|
|
|
1,607
|
|
|
2,965
|
|
|||
Net cash provided by (used in) investing activities
|
|
(168,001
|
)
|
|
(312,598
|
)
|
|
(174,040
|
)
|
|||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
||||||
Borrowings on credit facility — floorplan line and other
|
|
6,954,328
|
|
|
7,019,070
|
|
|
6,597,406
|
|
|||
Repayments on credit facility — floorplan line and other
|
|
(6,870,056
|
)
|
|
(6,957,866
|
)
|
|
(6,676,161
|
)
|
|||
Borrowings on credit facility — acquisition line
|
|
165,346
|
|
|
68,086
|
|
|
220,020
|
|
|||
Repayments on credit facility — acquisition line
|
|
(158,485
|
)
|
|
(42,278
|
)
|
|
(220,020
|
)
|
|||
Borrowings on other debt
|
|
156,023
|
|
|
165,702
|
|
|
49,972
|
|
|||
Principal payments on other debt
|
|
(118,789
|
)
|
|
(121,199
|
)
|
|
(45,928
|
)
|
|||
Borrowings on debt related to real estate, net of debt issue costs
|
|
54,712
|
|
|
75,309
|
|
|
39,141
|
|
|||
Principal payments on debt related to real estate
|
|
(91,467
|
)
|
|
(29,391
|
)
|
|
(25,463
|
)
|
|||
Employee stock purchase plan purchases, net of employee tax withholdings
|
|
2,717
|
|
|
4,603
|
|
|
3,868
|
|
|||
Proceeds from termination of mortgage swap
|
|
918
|
|
|
—
|
|
|
—
|
|
|||
Repurchases of common stock, amounts based on settlement date
|
|
(183,918
|
)
|
|
(40,094
|
)
|
|
(127,606
|
)
|
|||
Tax effect from stock-based compensation
|
|
—
|
|
|
—
|
|
|
(249
|
)
|
|||
Dividends paid
|
|
(20,872
|
)
|
|
(20,466
|
)
|
|
(19,987
|
)
|
|||
Net cash provided by (used in) financing activities
|
|
(109,543
|
)
|
|
121,476
|
|
|
(205,007
|
)
|
|||
EFFECT OF EXCHANGE RATE CHANGES ON CASH
|
|
(3,345
|
)
|
|
(8
|
)
|
|
2,145
|
|
|||
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
|
(10,911
|
)
|
|
5,385
|
|
|
7,195
|
|
|||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period
|
|
29,631
|
|
|
24,246
|
|
|
17,051
|
|
|||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period
|
|
$
|
18,720
|
|
|
$
|
29,631
|
|
|
$
|
24,246
|
|
SUPPLEMENTAL CASH FLOW INFORMATION:
|
|
|
|
|
|
|
||||||
Purchases of property and equipment, including real estate, accrued in accounts payable and accrued expenses
|
|
$
|
9,248
|
|
|
$
|
8,759
|
|
|
$
|
15,930
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Cash and cash equivalents
|
|
$
|
15,932
|
|
|
$
|
28,787
|
|
|
$
|
20,992
|
|
Restricted cash, included in other assets
|
|
2,788
|
|
|
844
|
|
|
3,254
|
|
|||
Total cash, cash equivalents and restricted cash
|
|
$
|
18,720
|
|
|
$
|
29,631
|
|
|
$
|
24,246
|
|
|
|
January 1, 2018
|
||||||||||
|
|
Balance at
December 31, 2017 |
|
Adjustment due to Topic 606
|
|
Balance at January 1, 2018 |
||||||
Balance Sheet
|
|
|
|
|
|
|
||||||
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
|
|
|
|
Year Ended December 31, 2018
|
||||||||||
|
|
As
Reported
|
|
Balances Without Adoption of Topic
606
|
|
Effect of Change
Higher (Lower)
|
||||||
Income Statement
|
|
|
|
|
|
|
||||||
Revenues
|
|
|
|
|
|
|
||||||
Parts and service sales
|
|
$
|
1,416,889
|
|
|
$
|
1,417,584
|
|
|
$
|
(695
|
)
|
Finance, insurance and other, net
|
|
467,453
|
|
|
461,711
|
|
|
5,742
|
|
|||
|
|
|
|
|
|
|
||||||
Cost of sales
|
|
|
|
|
|
|
||||||
Parts and service sales
|
|
$
|
657,741
|
|
|
$
|
657,886
|
|
|
$
|
(145
|
)
|
Selling, general and administrative expenses
|
|
1,273,057
|
|
|
1,273,131
|
|
|
(74
|
)
|
|||
Provision for income taxes
|
|
47,631
|
|
|
46,383
|
|
|
1,248
|
|
|||
Net income (loss)
|
|
$
|
157,772
|
|
|
$
|
153,754
|
|
|
$
|
4,018
|
|
|
|
December 31, 2018
|
||||||||||
|
|
As
Reported
|
|
Balances Without Adoption of Topic 606
|
|
Effect of Change
Higher (Lower)
|
||||||
Balance Sheet
|
|
|
|
|
|
|
||||||
Assets
|
|
|
|
|
|
|
||||||
Accounts and notes receivable, net
|
|
$
|
193,981
|
|
|
$
|
183,316
|
|
|
$
|
10,665
|
|
Inventories, net
|
|
1,844,059
|
|
|
1,847,493
|
|
|
(3,434
|
)
|
|||
Prepaid expense and other current assets
|
|
82,734
|
|
|
68,308
|
|
|
14,426
|
|
|||
|
|
|
|
|
|
|
||||||
Liabilities
|
|
|
|
|
|
|
||||||
Accounts payable
|
|
$
|
419,350
|
|
|
$
|
417,723
|
|
|
$
|
1,627
|
|
Deferred income taxes
|
|
134,683
|
|
|
129,964
|
|
|
4,719
|
|
|||
|
|
|
|
|
|
|
||||||
Stockholders' equity
|
|
|
|
|
|
|
||||||
Retained earnings and accumulated other comprehensive income (loss)
|
|
$
|
1,257,045
|
|
|
$
|
1,241,734
|
|
|
$
|
15,311
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
(1)
|
|
2016
(1)
|
||||||
REVENUES:
|
|
|
|
|
|
|
||||||
New vehicle retail sales
|
|
$
|
6,181,371
|
|
|
$
|
6,157,531
|
|
|
$
|
6,046,075
|
|
Used vehicle retail sales
|
|
3,166,070
|
|
|
2,798,986
|
|
|
2,757,713
|
|
|||
Used vehicle wholesale sales
|
|
369,575
|
|
|
400,170
|
|
|
401,863
|
|
|||
Total new and used vehicle sales
|
|
9,717,016
|
|
|
9,356,687
|
|
|
9,205,651
|
|
|||
|
|
|
|
|
|
|
||||||
Vehicle parts sales
|
|
340,456
|
|
|
316,850
|
|
|
302,117
|
|
|||
Maintenance and repair sales
|
|
1,076,433
|
|
|
1,021,182
|
|
|
959,190
|
|
|||
Total parts and service sales
|
|
1,416,889
|
|
|
1,338,032
|
|
|
1,261,307
|
|
|||
|
|
|
|
|
|
|
||||||
Finance, insurance and other, net
|
|
467,453
|
|
|
429,002
|
|
|
420,654
|
|
|||
Total revenues
|
|
$
|
11,601,358
|
|
|
$
|
11,123,721
|
|
|
$
|
10,887,612
|
|
|
|
Year Ended December 31, 2018
|
||||||||||||||
|
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
||||||||
REVENUES:
|
|
|
|
|
|
|
|
|
||||||||
New vehicle retail sales
|
|
$
|
4,682,820
|
|
|
$
|
1,217,135
|
|
|
$
|
281,416
|
|
|
$
|
6,181,371
|
|
Used vehicle retail sales
|
|
2,306,999
|
|
|
771,719
|
|
|
87,352
|
|
|
3,166,070
|
|
||||
Used vehicle wholesale sales
|
|
178,910
|
|
|
173,783
|
|
|
16,882
|
|
|
369,575
|
|
||||
Total new and used vehicle sales
|
|
7,168,729
|
|
|
2,162,637
|
|
|
385,650
|
|
|
9,717,016
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Vehicle parts sales
|
|
296,027
|
|
|
39,146
|
|
|
5,283
|
|
|
340,456
|
|
||||
Maintenance and repair sales
|
|
857,230
|
|
|
178,448
|
|
|
40,755
|
|
|
1,076,433
|
|
||||
Total parts and service sales
|
|
1,153,257
|
|
|
217,594
|
|
|
46,038
|
|
|
1,416,889
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Finance, insurance and other, net
|
|
401,271
|
|
|
57,154
|
|
|
9,028
|
|
|
467,453
|
|
||||
Total revenues
|
|
$
|
8,723,257
|
|
|
$
|
2,437,385
|
|
|
$
|
440,716
|
|
|
$
|
11,601,358
|
|
|
|
Year Ended December 31, 2017
(1)
|
||||||||||||||
|
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
||||||||
REVENUES:
|
|
|
|
|
|
|
|
|
||||||||
New vehicle retail sales
|
|
$
|
4,768,864
|
|
|
$
|
1,092,612
|
|
|
$
|
296,055
|
|
|
$
|
6,157,531
|
|
Used vehicle retail sales
|
|
2,160,699
|
|
|
546,266
|
|
|
92,021
|
|
|
2,798,986
|
|
||||
Used vehicle wholesale sales
|
|
250,668
|
|
|
136,847
|
|
|
12,655
|
|
|
400,170
|
|
||||
Total new and used vehicle sales
|
|
7,180,231
|
|
|
1,775,725
|
|
|
400,731
|
|
|
9,356,687
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Vehicle parts sales
|
|
282,744
|
|
|
28,206
|
|
|
5,900
|
|
|
316,850
|
|
||||
Maintenance and repair sales
|
|
841,636
|
|
|
137,549
|
|
|
41,997
|
|
|
1,021,182
|
|
||||
Total parts and service sales
|
|
1,124,380
|
|
|
165,755
|
|
|
47,897
|
|
|
1,338,032
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Finance, insurance and other, net
|
|
375,954
|
|
|
44,523
|
|
|
8,525
|
|
|
429,002
|
|
||||
Total revenues
|
|
$
|
8,680,565
|
|
|
$
|
1,986,003
|
|
|
$
|
457,153
|
|
|
$
|
11,123,721
|
|
|
|
Year Ended December 31, 2016
(1)
|
||||||||||||||
|
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
||||||||
REVENUES:
|
|
|
|
|
|
|
|
|
||||||||
New vehicle retail sales
|
|
$
|
4,766,047
|
|
|
$
|
987,538
|
|
|
$
|
292,490
|
|
|
$
|
6,046,075
|
|
Used vehicle retail sales
|
|
2,242,508
|
|
|
434,203
|
|
|
81,002
|
|
|
2,757,713
|
|
||||
Used vehicle wholesale sales
|
|
276,710
|
|
|
121,747
|
|
|
3,406
|
|
|
401,863
|
|
||||
Total new and used vehicle sales
|
|
7,285,265
|
|
|
1,543,488
|
|
|
376,898
|
|
|
9,205,651
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Vehicle parts sales
|
|
268,919
|
|
|
24,602
|
|
|
8,596
|
|
|
302,117
|
|
||||
Maintenance and repair sales
|
|
802,732
|
|
|
118,760
|
|
|
37,698
|
|
|
959,190
|
|
||||
Total parts and service sales
|
|
1,071,651
|
|
|
143,362
|
|
|
46,294
|
|
|
1,261,307
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Finance, insurance and other, net
|
|
377,756
|
|
|
36,305
|
|
|
6,593
|
|
|
420,654
|
|
||||
Total revenues
|
|
$
|
8,734,672
|
|
|
$
|
1,723,155
|
|
|
$
|
429,785
|
|
|
$
|
10,887,612
|
|
|
2019
|
2020
|
2021
|
2022
|
2023
|
2024
|
||||||||||||
Notional amount of swaps expiring
|
$
|
353.0
|
|
$
|
253.0
|
|
$
|
111.3
|
|
$
|
18.1
|
|
$
|
13.6
|
|
$
|
4.2
|
|
|
|
Amount of Unrealized Income (Loss),
Net of Tax, Recognized in OCI
|
||||||||||
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Derivatives in Cash Flow Hedging Relationship
|
|
|
|
|
|
|
||||||
Interest rate derivative instruments
|
|
$
|
6,546
|
|
|
$
|
1,034
|
|
|
$
|
1,728
|
|
|
|
|
|
|
|
|
||||||
|
|
Amount of Income (Loss) Reclassified from OCI
into Statement of Operations
|
||||||||||
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Location of Income (Loss) Reclassified from OCI into Statements of Operations
|
|
|
|
|
|
|
||||||
Floorplan interest expense
|
|
$
|
(4,671
|
)
|
|
$
|
(10,272
|
)
|
|
$
|
(11,097
|
)
|
Other interest expense
|
|
(476
|
)
|
|
(1,924
|
)
|
|
(2,332
|
)
|
|
|
Awards
|
|
Weighted Average
Grant Date
Fair Value
|
|||
Nonvested at December 31, 2017
|
|
702,778
|
|
|
$
|
68.23
|
|
Granted
|
|
246,721
|
|
|
74.09
|
|
|
Vested
|
|
(236,334
|
)
|
|
64.38
|
|
|
Forfeited
|
|
(31,365
|
)
|
|
69.71
|
|
|
Nonvested at December 31, 2018
|
|
681,800
|
|
|
$
|
71.60
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Weighted average basic common shares outstanding
|
|
19,453
|
|
|
20,420
|
|
|
21,161
|
|
|||
Dilutive effect of employee stock purchases, net of assumed repurchase of treasury stock
|
|
8
|
|
|
5
|
|
|
9
|
|
|||
Weighted average dilutive common shares outstanding
|
|
19,461
|
|
|
20,425
|
|
|
21,170
|
|
|||
Basic:
|
|
|
|
|
|
|
||||||
Net income (loss)
|
|
$
|
157,772
|
|
|
$
|
213,442
|
|
|
$
|
147,065
|
|
Less: Earnings (loss) allocated to participating securities
|
|
5,416
|
|
|
7,512
|
|
|
5,871
|
|
|||
Earnings (loss) available to basic common shares
|
|
$
|
152,356
|
|
|
$
|
205,930
|
|
|
$
|
141,194
|
|
Basic earnings (loss) per common share
|
|
$
|
7.83
|
|
|
$
|
10.08
|
|
|
$
|
6.67
|
|
Diluted:
|
|
|
|
|
|
|
||||||
Net income (loss)
|
|
$
|
157,772
|
|
|
$
|
213,442
|
|
|
$
|
147,065
|
|
Less: Earnings (loss) allocated to participating securities
|
|
5,414
|
|
|
7,511
|
|
|
5,869
|
|
|||
Earnings (loss) available to diluted common shares
|
|
$
|
152,358
|
|
|
$
|
205,931
|
|
|
$
|
141,196
|
|
Diluted earnings (loss) per common share
|
|
$
|
7.83
|
|
|
$
|
10.08
|
|
|
$
|
6.67
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Domestic
|
|
$
|
192,105
|
|
|
$
|
206,579
|
|
|
$
|
222,178
|
|
Foreign
|
|
13,298
|
|
|
12,424
|
|
|
5,193
|
|
|||
Total income before income taxes
|
|
$
|
205,403
|
|
|
$
|
219,003
|
|
|
$
|
227,371
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Federal:
|
|
|
|
|
|
|
||||||
Current
|
|
$
|
35,923
|
|
|
$
|
44,921
|
|
|
$
|
57,321
|
|
Deferred
|
|
2,600
|
|
|
(46,938
|
)
|
|
18,704
|
|
|||
State:
|
|
|
|
|
|
|
||||||
Current
|
|
4,327
|
|
|
3,774
|
|
|
4,636
|
|
|||
Deferred
|
|
884
|
|
|
3,921
|
|
|
1,878
|
|
|||
Foreign:
|
|
|
|
|
|
|
||||||
Current
|
|
3,907
|
|
|
2,929
|
|
|
4,187
|
|
|||
Deferred
|
|
(10
|
)
|
|
(3,046
|
)
|
|
(6,420
|
)
|
|||
Provision for income taxes
|
|
$
|
47,631
|
|
|
$
|
5,561
|
|
|
$
|
80,306
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Provision at the U.S. federal statutory rate
|
|
$
|
43,135
|
|
|
$
|
76,651
|
|
|
$
|
79,580
|
|
Increase (decrease) resulting from:
|
|
|
|
|
|
|
||||||
State income tax, net of benefit for federal deduction
|
|
3,639
|
|
|
4,472
|
|
|
4,230
|
|
|||
Foreign income tax rate differential
|
|
(259
|
)
|
|
(2,443
|
)
|
|
(2,799
|
)
|
|||
Employment credits
|
|
(1,327
|
)
|
|
(862
|
)
|
|
(821
|
)
|
|||
Changes in valuation allowances
|
|
3,442
|
|
|
629
|
|
|
749
|
|
|||
Non-deductible goodwill
|
|
—
|
|
|
—
|
|
|
34
|
|
|||
Tax Cuts and Jobs Act - Enactment date effect
|
|
(575
|
)
|
|
(73,028
|
)
|
|
—
|
|
|||
Stock-based compensation
|
|
(74
|
)
|
|
(136
|
)
|
|
368
|
|
|||
Other
|
|
(350
|
)
|
|
278
|
|
|
(1,035
|
)
|
|||
Provision for income taxes
|
|
$
|
47,631
|
|
|
$
|
5,561
|
|
|
$
|
80,306
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Deferred tax assets:
|
|
|
|
|
||||
Loss reserves and accruals
|
|
$
|
41,779
|
|
|
$
|
44,004
|
|
Interest rate swaps
|
|
—
|
|
|
259
|
|
||
Goodwill and intangible franchise rights
|
|
44
|
|
|
2,770
|
|
||
U.S. state net operating loss (“NOL”) carryforwards
|
|
17,894
|
|
|
17,430
|
|
||
Depreciation expense
|
|
433
|
|
|
—
|
|
||
Foreign NOL carryforwards
|
|
37,587
|
|
|
40,582
|
|
||
Other
|
|
84
|
|
|
379
|
|
||
Deferred tax assets
|
|
97,821
|
|
|
105,424
|
|
||
Valuation allowance on deferred tax assets
|
|
(52,257
|
)
|
|
(54,415
|
)
|
||
Net deferred tax assets
|
|
$
|
45,564
|
|
|
$
|
51,009
|
|
Deferred tax liabilities:
|
|
|
|
|
||||
Goodwill and intangible franchise rights
|
|
$
|
(123,659
|
)
|
|
$
|
(118,447
|
)
|
Depreciation expense
|
|
(50,172
|
)
|
|
(50,166
|
)
|
||
Deferred gain on bond redemption
|
|
—
|
|
|
(327
|
)
|
||
Interest rate swaps
|
|
(2,788
|
)
|
|
—
|
|
||
Other
|
|
(72
|
)
|
|
(1,820
|
)
|
||
Deferred tax liabilities
|
|
(176,691
|
)
|
|
(170,760
|
)
|
||
Net deferred tax liability
|
|
$
|
(131,127
|
)
|
|
$
|
(119,751
|
)
|
|
2018
|
||
BALANCE at January 1
|
$
|
1,151
|
|
Additions for current tax
|
562
|
|
|
Additions based on tax positions in prior years
|
—
|
|
|
Reductions for tax positions
|
—
|
|
|
Settlements with tax authorities
|
—
|
|
|
Reductions due to lapse of statutes of limitations
|
(115
|
)
|
|
BALANCE, December 31
|
$
|
1,598
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Amounts due from manufacturers
|
|
$
|
105,140
|
|
|
$
|
109,599
|
|
Parts and service receivables
|
|
51,922
|
|
|
39,343
|
|
||
Finance and insurance receivables
|
|
26,446
|
|
|
25,293
|
|
||
Other
|
|
13,673
|
|
|
17,514
|
|
||
Total accounts and notes receivable
|
|
197,181
|
|
|
191,749
|
|
||
Less: allowance for doubtful accounts
|
|
3,200
|
|
|
3,138
|
|
||
Accounts and notes receivable, net
|
|
$
|
193,981
|
|
|
$
|
188,611
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
New vehicles
|
|
$
|
1,278,863
|
|
|
$
|
1,194,632
|
|
Used vehicles
|
|
350,219
|
|
|
350,760
|
|
||
Rental vehicles
|
|
142,926
|
|
|
144,213
|
|
||
Parts, accessories and other
|
|
80,556
|
|
|
82,755
|
|
||
Total inventories
|
|
1,852,564
|
|
|
1,772,360
|
|
||
Less: lower of cost or net realizable value allowance
|
|
8,505
|
|
|
9,067
|
|
||
Inventories, net
|
|
$
|
1,844,059
|
|
|
$
|
1,763,293
|
|
|
|
Estimated
Useful Lives in Years |
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||||
Land
|
|
|
|
$
|
487,618
|
|
|
$
|
482,600
|
|
Buildings
|
|
25 to 50
|
|
727,826
|
|
|
700,257
|
|
||
Leasehold improvements
|
|
varies
|
|
189,248
|
|
|
172,071
|
|
||
Machinery and equipment
|
|
7 to 20
|
|
125,919
|
|
|
117,781
|
|
||
Furniture and fixtures
|
|
3 to 10
|
|
109,274
|
|
|
100,881
|
|
||
Company vehicles
|
|
3 to 5
|
|
12,333
|
|
|
11,933
|
|
||
Construction in progress
|
|
|
|
42,959
|
|
|
41,824
|
|
||
Total
|
|
|
|
1,695,177
|
|
|
1,627,347
|
|
||
Less: accumulated depreciation and amortization
|
|
|
|
347,342
|
|
|
308,388
|
|
||
Property and equipment, net
|
|
|
|
$
|
1,347,835
|
|
|
$
|
1,318,959
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Floorplan notes payable — credit facility and other
|
|
|
|
|
||||
New vehicles
|
|
$
|
1,063,710
|
|
|
$
|
1,019,511
|
|
Used vehicles
|
|
167,578
|
|
|
176,802
|
|
||
Rental vehicles
|
|
20,114
|
|
|
23,530
|
|
||
Floorplan offset
|
|
(33,637
|
)
|
|
(86,547
|
)
|
||
Total floorplan notes payable - credit facility
|
|
1,217,765
|
|
|
1,133,296
|
|
||
Other floorplan notes payable
|
|
41,050
|
|
|
20,852
|
|
||
Total floorplan notes payable - credit facility and other
|
|
$
|
1,258,815
|
|
|
$
|
1,154,148
|
|
Floorplan notes payable — manufacturer affiliates
|
|
|
|
|
||||
FMCC Facility
|
|
$
|
160,786
|
|
|
$
|
152,984
|
|
Floorplan offset
|
|
(100
|
)
|
|
(22,500
|
)
|
||
Total FMCC Facility
|
|
160,686
|
|
|
130,484
|
|
||
Foreign and rental vehicles
|
|
257,138
|
|
|
244,199
|
|
||
Total floorplan notes payable — manufacturer affiliates
|
|
$
|
417,824
|
|
|
$
|
374,683
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
5.00% Senior Notes (aggregate principal of $550,000 at December 31, 2018 and 2017)
|
|
$
|
543,730
|
|
|
$
|
542,063
|
|
5.25% Senior Notes (aggregate principal of $300,000 at December 31, 2018 and 2017)
|
|
296,735
|
|
|
296,151
|
|
||
Acquisition Line
|
|
31,842
|
|
|
26,988
|
|
||
Real Estate Related & Other Long-Term Debt
|
|
445,248
|
|
|
440,845
|
|
||
Capital lease obligations related to real estate, maturing in varying amounts through December 2037 with a weighted average interest rate of 8.4% and 10.4%, respectively
|
|
48,612
|
|
|
51,665
|
|
||
|
|
1,366,167
|
|
|
1,357,712
|
|
||
Less current maturities of long-term debt
|
|
84,678
|
|
|
39,528
|
|
||
|
|
$
|
1,281,489
|
|
|
$
|
1,318,184
|
|
•
|
Level 1 — unadjusted, quoted prices for identical assets or liabilities in active markets;
|
•
|
Level 2 — quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted market prices that are observable or that can be corroborated by observable market data by correlation; and
|
•
|
Level 3 — unobservable inputs based upon the reporting entity’s internally developed assumptions that market participants would use in pricing the asset or liability.
|
|
As of December 31,
|
||||||
|
2018
|
|
2017
|
||||
Assets:
|
|
|
|
||||
Investments
|
$
|
2,788
|
|
|
$
|
844
|
|
Demand obligations
|
13
|
|
|
13
|
|
||
Interest rate derivative financial instruments
|
13,576
|
|
|
9,501
|
|
||
Total
|
$
|
16,377
|
|
|
$
|
10,358
|
|
Liabilities:
|
|
|
|
||||
Interest rate derivative financial instruments
|
$
|
1,811
|
|
|
$
|
10,579
|
|
Total
|
$
|
1,811
|
|
|
$
|
10,579
|
|
•
|
The Company determined that the carrying values of certain of its intangible franchise rights were greater than the fair value and, as a result, recognized
$19.3 million
in aggregate pre-tax non-cash asset impairment charges during the third and fourth quarters of
2017
.
|
•
|
In addition, the Company determined that the carrying value of various other long-term assets was no longer recoverable, and recognized
$0.2 million
in pre-tax non-cash asset impairment charges.
|
•
|
The Company determined that the carrying values of certain of its intangible franchise rights were greater than the fair value and, as a result, recognized a
$30.0 million
pre-tax non-cash asset impairment charge.
|
•
|
In addition, the Company determined that the carrying amounts of various real estate holdings and other long-lived assets were no longer fully recoverable, and recognized
$2.8 million
in pre-tax non-cash asset impairment charges.
|
|
|
Intangible Franchise Rights
|
||||||||||||||
|
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
||||||||
BALANCE, December 31, 2016
|
|
$
|
260,534
|
|
|
$
|
17,337
|
|
|
$
|
7,005
|
|
|
$
|
284,876
|
|
Additions through acquisitions
|
|
8,035
|
|
|
10,133
|
|
|
—
|
|
|
18,168
|
|
||||
Impairments
|
|
(12,588
|
)
|
|
—
|
|
|
(6,744
|
)
|
|
(19,332
|
)
|
||||
Currency translation
|
|
—
|
|
|
2,013
|
|
|
(93
|
)
|
|
1,920
|
|
||||
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
|
|
(38,255
|
)
|
|
(485
|
)
|
|
—
|
|
|
(38,740
|
)
|
||||
Currency translation
|
|
—
|
|
|
(2,329
|
)
|
|
(24
|
)
|
|
(2,353
|
)
|
||||
BALANCE, December 31, 2018
|
|
$
|
224,394
|
|
|
$
|
35,092
|
|
|
$
|
144
|
|
|
$
|
259,630
|
|
|
|
Goodwill
|
|||||||||||||||
|
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
|||||||||
BALANCE, December 31, 2016
|
|
$
|
805,935
|
|
|
$
|
57,054
|
|
|
$
|
13,774
|
|
|
$
|
876,763
|
|
(1)
|
Additions through acquisitions
|
|
29,332
|
|
|
2,575
|
|
|
95
|
|
|
32,002
|
|
|
||||
Disposals
|
|
—
|
|
|
—
|
|
|
(933
|
)
|
|
(933
|
)
|
|
||||
Currency translation
|
|
—
|
|
|
5,405
|
|
|
(203
|
)
|
|
5,202
|
|
|
||||
BALANCE, December 31, 2017
|
|
835,267
|
|
|
65,034
|
|
|
12,733
|
|
|
913,034
|
|
(1)
|
||||
Additions through acquisitions
|
|
39,703
|
|
|
28,475
|
|
|
4,284
|
|
|
72,462
|
|
|
||||
Purchase price allocation adjustments
|
|
19
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
||||
Disposals and assets held for sale
|
|
(13,361
|
)
|
|
—
|
|
|
—
|
|
|
(13,361
|
)
|
|
||||
Currency translation
|
|
—
|
|
|
(5,922
|
)
|
|
(2,307
|
)
|
|
(8,229
|
)
|
|
||||
BALANCE, December 31, 2018
|
|
$
|
861,628
|
|
|
$
|
87,587
|
|
|
$
|
14,710
|
|
|
$
|
963,925
|
|
(1)
|
|
Total
|
||
Years Ended December 31,
|
|
||
2019
|
$
|
38,298
|
|
2020
|
34,705
|
|
|
2021
|
30,903
|
|
|
2022
|
26,713
|
|
|
2023
|
24,262
|
|
|
Thereafter
|
141,662
|
|
|
Total
(1)
|
$
|
296,543
|
|
|
|
Accumulated income
(loss) on
foreign currency
translation
|
|
Accumulated income
(loss)
on interest
rate swaps
|
|
Total
|
||||||
BALANCE, December 31, 2015
|
|
$
|
(118,532
|
)
|
|
$
|
(19,452
|
)
|
|
$
|
(137,984
|
)
|
Other comprehensive income (loss), net of tax
|
|
(19,081
|
)
|
|
10,121
|
|
|
(8,960
|
)
|
|||
BALANCE, December 31, 2016
|
|
(137,613
|
)
|
|
(9,331
|
)
|
|
(146,944
|
)
|
|||
Other comprehensive income (loss), net of tax
|
|
15,061
|
|
|
8,657
|
|
|
23,718
|
|
|||
BALANCE, December 31, 2017
|
|
(122,552
|
)
|
|
(674
|
)
|
|
(123,226
|
)
|
|||
Other comprehensive income (loss), net of tax
|
|
(24,156
|
)
|
|
9,760
|
|
|
(14,396
|
)
|
|||
Tax effects reclassified from accumulated other comprehensive income (loss)
|
|
—
|
|
|
(150
|
)
|
|
(150
|
)
|
|||
BALANCE, December 31, 2018
|
|
$
|
(146,708
|
)
|
|
$
|
8,936
|
|
|
$
|
(137,772
|
)
|
|
Year Ended December 31, 2018
|
|
||||||||||||||
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
|
||||||||
New vehicle retail sales
|
$
|
4,682,820
|
|
|
$
|
1,217,135
|
|
|
$
|
281,416
|
|
|
$
|
6,181,371
|
|
|
Used vehicle retail sales
|
2,306,999
|
|
|
771,719
|
|
|
87,352
|
|
|
3,166,070
|
|
|
||||
Used vehicle wholesale sales
|
178,910
|
|
|
173,783
|
|
|
16,882
|
|
|
369,575
|
|
|
||||
Parts and service
|
1,153,257
|
|
|
217,594
|
|
|
46,038
|
|
|
1,416,889
|
|
|
||||
Finance, insurance and other, net
|
401,271
|
|
|
57,154
|
|
|
9,028
|
|
|
467,453
|
|
|
||||
Total revenues
|
8,723,257
|
|
|
2,437,385
|
|
|
440,716
|
|
|
11,601,358
|
|
|
||||
Gross profit
|
1,391,306
|
|
|
279,902
|
|
|
53,885
|
|
|
1,725,093
|
|
|
||||
Selling, general and administrative expenses
|
982,064
|
|
(1)
|
240,403
|
|
|
50,590
|
|
(2)
|
1,273,057
|
|
|
||||
Depreciation and amortization expense
|
52,881
|
|
|
12,586
|
|
|
1,603
|
|
|
67,070
|
|
|
||||
Asset impairments
|
43,398
|
|
|
485
|
|
|
—
|
|
|
43,883
|
|
|
||||
Floorplan interest expense
|
(52,773
|
)
|
|
(6,322
|
)
|
|
(787
|
)
|
|
(59,882
|
)
|
|
||||
Other interest expense, net
|
(68,085
|
)
|
|
(6,797
|
)
|
|
(916
|
)
|
|
(75,798
|
)
|
|
||||
Income (loss) before income taxes
|
192,105
|
|
|
13,309
|
|
|
(11
|
)
|
|
205,403
|
|
|
||||
Benefit (provision) for income taxes
|
(43,734
|
)
|
|
(2,549
|
)
|
|
(1,348
|
)
|
|
(47,631
|
)
|
|
||||
Net income (loss)
|
$
|
148,371
|
|
|
$
|
10,760
|
|
|
$
|
(1,359
|
)
|
|
$
|
157,772
|
|
|
Capital expenditures
|
$
|
90,530
|
|
|
$
|
16,947
|
|
|
$
|
2,667
|
|
|
$
|
110,144
|
|
|
|
Year Ended December 31, 2017
(4)
|
|
||||||||||||||
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
|
||||||||
New vehicle retail sales
|
$
|
4,768,864
|
|
|
$
|
1,092,612
|
|
|
$
|
296,055
|
|
|
$
|
6,157,531
|
|
|
Used vehicle retail sales
|
2,160,699
|
|
|
546,266
|
|
|
92,021
|
|
|
2,798,986
|
|
|
||||
Used vehicle wholesale sales
|
250,668
|
|
|
136,847
|
|
|
12,655
|
|
|
400,170
|
|
|
||||
Parts and service
|
1,124,380
|
|
|
165,755
|
|
|
47,897
|
|
|
1,338,032
|
|
|
||||
Finance, insurance and other, net
|
375,954
|
|
|
44,523
|
|
|
8,525
|
|
|
429,002
|
|
|
||||
Total revenues
|
8,680,565
|
|
(1)
|
1,986,003
|
|
|
457,153
|
|
|
11,123,721
|
|
|
||||
Gross profit
|
1,365,314
|
|
|
225,253
|
|
|
54,942
|
|
|
1,645,509
|
|
|
||||
Selling, general and administrative expenses
|
983,974
|
|
(2)
|
191,570
|
|
|
50,651
|
|
|
1,226,195
|
|
|
||||
Depreciation and amortization expense
|
48,285
|
|
|
8,198
|
|
|
1,453
|
|
|
57,936
|
|
|
||||
Asset impairments
|
12,762
|
|
|
—
|
|
|
6,744
|
|
|
19,506
|
|
|
||||
Floorplan interest expense
|
(47,221
|
)
|
|
(4,727
|
)
|
|
(424
|
)
|
|
(52,372
|
)
|
|
||||
Other interest expense, net
|
(66,493
|
)
|
|
(3,664
|
)
|
|
(340
|
)
|
|
(70,497
|
)
|
|
||||
Income (loss) before income taxes
|
206,579
|
|
|
17,094
|
|
|
(4,670
|
)
|
|
219,003
|
|
|
||||
Benefit (provision) for income taxes
|
(5,679
|
)
|
(3)
|
(2,142
|
)
|
|
2,260
|
|
|
(5,561
|
)
|
|
||||
Net income (loss)
|
$
|
200,900
|
|
|
$
|
14,952
|
|
|
$
|
(2,410
|
)
|
|
$
|
213,442
|
|
|
Capital expenditures
|
$
|
77,477
|
|
|
$
|
19,944
|
|
|
$
|
880
|
|
|
$
|
98,301
|
|
|
|
Year Ended December 31, 2016
(4)
|
|
||||||||||||||
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
|
||||||||
New vehicle retail sales
|
$
|
4,766,047
|
|
|
$
|
987,538
|
|
|
$
|
292,490
|
|
|
$
|
6,046,075
|
|
|
Used vehicle retail sales
|
2,242,508
|
|
|
434,203
|
|
|
81,002
|
|
|
2,757,713
|
|
|
||||
Used vehicle wholesale sales
|
276,710
|
|
|
121,747
|
|
|
3,406
|
|
|
401,863
|
|
|
||||
Parts and service
|
1,071,651
|
|
|
143,362
|
|
|
46,294
|
|
|
1,261,307
|
|
|
||||
Finance, insurance and other, net
|
377,756
|
|
|
36,305
|
|
|
6,593
|
|
|
420,654
|
|
|
||||
Total revenues
|
8,734,672
|
|
|
1,723,155
|
|
|
429,785
|
|
|
10,887,612
|
|
|
||||
Gross profit
|
1,355,349
|
|
|
192,982
|
|
|
46,738
|
|
|
1,595,069
|
|
|
||||
Selling, general and administrative expenses
|
965,139
|
|
(1)
|
158,636
|
|
|
46,988
|
|
(2)
|
1,170,763
|
|
|
||||
Depreciation and amortization expense
|
43,472
|
|
|
6,594
|
|
|
1,168
|
|
|
51,234
|
|
|
||||
Asset impairments
|
21,794
|
|
|
201
|
|
|
10,843
|
|
|
32,838
|
|
|
||||
Floorplan interest expense
|
(40,444
|
)
|
|
(4,222
|
)
|
|
(261
|
)
|
|
(44,927
|
)
|
|
||||
Other interest expense, net
|
(62,320
|
)
|
|
(5,197
|
)
|
|
(419
|
)
|
|
(67,936
|
)
|
|
||||
Income (loss) before income taxes
|
222,180
|
|
|
18,132
|
|
|
(12,941
|
)
|
|
227,371
|
|
|
||||
Benefit (provision) for income taxes
|
(82,541
|
)
|
|
(3,697
|
)
|
|
5,932
|
|
|
(80,306
|
)
|
|
||||
Net income (loss)
|
$
|
139,639
|
|
|
$
|
14,435
|
|
|
$
|
(7,009
|
)
|
(3)
|
$
|
147,065
|
|
|
Capital expenditures
|
$
|
86,692
|
|
|
$
|
12,602
|
|
|
$
|
1,312
|
|
|
$
|
100,606
|
|
|
|
|
As of December 31, 2018
|
||||||||||||||
|
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
||||||||
Goodwill and intangible franchise rights
|
|
$
|
1,086,022
|
|
|
$
|
122,679
|
|
|
$
|
14,854
|
|
|
$
|
1,223,555
|
|
Total assets
|
|
$
|
4,113,049
|
|
|
$
|
756,350
|
|
|
$
|
131,676
|
|
|
$
|
5,001,075
|
|
|
|
As of December 31, 2017
|
||||||||||||||
|
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
||||||||
Goodwill and intangible franchise rights
|
|
$
|
1,091,248
|
|
|
$
|
94,517
|
|
|
$
|
12,901
|
|
|
$
|
1,198,666
|
|
Total assets
|
|
$
|
4,087,039
|
|
|
$
|
654,154
|
|
|
$
|
129,872
|
|
|
$
|
4,871,065
|
|
|
|
Quarter
|
|
|
||||||||||||||||
|
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
|
Full Year
|
||||||||||
|
|
(In thousands, except per share data)
|
||||||||||||||||||
Years Ended December 31,
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total revenues
|
|
$
|
2,860,026
|
|
|
$
|
2,943,462
|
|
|
$
|
2,889,058
|
|
|
$
|
2,908,812
|
|
|
$
|
11,601,358
|
|
Gross profit
|
|
419,763
|
|
|
438,163
|
|
|
435,101
|
|
|
432,066
|
|
|
1,725,093
|
|
|||||
Net income (loss)
|
|
35,814
|
|
|
56,463
|
|
|
34,777
|
|
|
30,718
|
|
|
157,772
|
|
|||||
Basic earnings (loss) per share
(1)
|
|
1.70
|
|
|
2.72
|
|
|
1.74
|
|
|
1.62
|
|
|
7.83
|
|
|||||
Diluted earnings (loss) per share
(1)
|
|
1.70
|
|
|
2.72
|
|
|
1.74
|
|
|
1.62
|
|
|
7.83
|
|
|||||
2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total revenues
|
|
$
|
2,518,829
|
|
|
$
|
2,672,195
|
|
|
$
|
3,012,292
|
|
|
$
|
2,920,405
|
|
|
$
|
11,123,721
|
|
Gross profit
|
|
383,522
|
|
|
404,892
|
|
|
431,420
|
|
|
425,675
|
|
|
1,645,509
|
|
|||||
Net income (loss)
|
|
33,939
|
|
|
39,133
|
|
|
29,881
|
|
|
110,489
|
|
|
213,442
|
|
|||||
Basic earnings (loss) per share
(1)
|
|
1.58
|
|
|
1.84
|
|
|
1.43
|
|
|
5.27
|
|
|
10.08
|
|
|||||
Diluted earnings (loss) per share
(1)
|
|
1.58
|
|
|
1.84
|
|
|
1.43
|
|
|
5.27
|
|
|
10.08
|
|
|
Group 1 Automotive, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Elimination
|
|
Total Company
|
||||||||||
REVENUES
|
$
|
—
|
|
|
$
|
8,723,258
|
|
|
$
|
2,878,100
|
|
|
$
|
—
|
|
|
$
|
11,601,358
|
|
COST OF SALES
|
—
|
|
|
7,331,950
|
|
|
2,544,315
|
|
|
—
|
|
|
9,876,265
|
|
|||||
GROSS PROFIT
|
—
|
|
|
1,391,308
|
|
|
333,785
|
|
|
—
|
|
|
1,725,093
|
|
|||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
|
3,388
|
|
|
971,923
|
|
|
297,746
|
|
|
—
|
|
|
1,273,057
|
|
|||||
DEPRECIATION AND AMORTIZATION EXPENSE
|
—
|
|
|
52,881
|
|
|
14,189
|
|
|
—
|
|
|
67,070
|
|
|||||
ASSET IMPAIRMENTS
|
—
|
|
|
43,398
|
|
|
485
|
|
|
—
|
|
|
43,883
|
|
|||||
INCOME (LOSS) FROM OPERATIONS
|
(3,388
|
)
|
|
323,106
|
|
|
21,365
|
|
|
—
|
|
|
341,083
|
|
|||||
OTHER EXPENSE:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Floorplan interest expense
|
—
|
|
|
(52,773
|
)
|
|
(7,109
|
)
|
|
—
|
|
|
(59,882
|
)
|
|||||
Other interest income (expense), net
|
—
|
|
|
(68,085
|
)
|
|
(7,713
|
)
|
|
—
|
|
|
(75,798
|
)
|
|||||
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF SUBSIDIARIES
|
(3,388
|
)
|
|
202,248
|
|
|
6,543
|
|
|
—
|
|
|
205,403
|
|
|||||
BENEFIT (PROVISION) FOR INCOME TAXES
|
786
|
|
|
(44,520
|
)
|
|
(3,897
|
)
|
|
—
|
|
|
(47,631
|
)
|
|||||
EQUITY IN EARNINGS OF SUBSIDIARIES
|
160,374
|
|
|
—
|
|
|
—
|
|
|
(160,374
|
)
|
|
—
|
|
|||||
NET INCOME (LOSS)
|
$
|
157,772
|
|
|
$
|
157,728
|
|
|
$
|
2,646
|
|
|
$
|
(160,374
|
)
|
|
$
|
157,772
|
|
COMPREHENSIVE INCOME (LOSS)
|
—
|
|
|
9,760
|
|
|
(24,156
|
)
|
|
—
|
|
|
(14,396
|
)
|
|||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO PARENT
|
$
|
157,772
|
|
|
$
|
167,488
|
|
|
$
|
(21,510
|
)
|
|
$
|
(160,374
|
)
|
|
$
|
143,376
|
|
|
Group 1 Automotive, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Elimination
|
|
Total Company
|
||||||||||
REVENUES
|
$
|
—
|
|
|
$
|
8,680,565
|
|
|
$
|
2,443,156
|
|
|
$
|
—
|
|
|
$
|
11,123,721
|
|
COST OF SALES
|
—
|
|
|
7,315,252
|
|
|
2,162,960
|
|
|
—
|
|
|
9,478,212
|
|
|||||
GROSS PROFIT
|
—
|
|
|
1,365,313
|
|
|
280,196
|
|
|
—
|
|
|
1,645,509
|
|
|||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
|
3,381
|
|
|
974,413
|
|
|
248,401
|
|
|
—
|
|
|
1,226,195
|
|
|||||
DEPRECIATION AND AMORTIZATION EXPENSE
|
—
|
|
|
48,284
|
|
|
9,652
|
|
|
—
|
|
|
57,936
|
|
|||||
ASSET IMPAIRMENTS
|
—
|
|
|
12,762
|
|
|
6,744
|
|
|
—
|
|
|
19,506
|
|
|||||
INCOME (LOSS) FROM OPERATIONS
|
(3,381
|
)
|
|
329,854
|
|
|
15,399
|
|
|
—
|
|
|
341,872
|
|
|||||
OTHER EXPENSE:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Floorplan interest expense
|
—
|
|
|
(47,222
|
)
|
|
(5,150
|
)
|
|
—
|
|
|
(52,372
|
)
|
|||||
Other interest expense, net
|
—
|
|
|
(66,490
|
)
|
|
(4,007
|
)
|
|
—
|
|
|
(70,497
|
)
|
|||||
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF SUBSIDIARIES
|
(3,381
|
)
|
|
216,142
|
|
|
6,242
|
|
|
—
|
|
|
219,003
|
|
|||||
BENEFIT (PROVISION) FOR INCOME TAXES
|
1,268
|
|
|
(6,947
|
)
|
|
118
|
|
|
—
|
|
|
(5,561
|
)
|
|||||
EQUITY IN EARNINGS OF SUBSIDIARIES
|
215,556
|
|
|
—
|
|
|
—
|
|
|
(215,556
|
)
|
|
—
|
|
|||||
NET INCOME (LOSS)
|
$
|
213,443
|
|
|
$
|
209,195
|
|
|
$
|
6,360
|
|
|
$
|
(215,556
|
)
|
|
$
|
213,442
|
|
COMPREHENSIVE INCOME (LOSS)
|
—
|
|
|
8,657
|
|
|
15,061
|
|
|
—
|
|
|
23,718
|
|
|||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO PARENT
|
$
|
213,443
|
|
|
$
|
217,852
|
|
|
$
|
21,421
|
|
|
$
|
(215,556
|
)
|
|
$
|
237,160
|
|
|
Group 1 Automotive, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Elimination
|
|
Total Company
|
||||||||||
REVENUES
|
$
|
—
|
|
|
$
|
8,734,673
|
|
|
$
|
2,152,939
|
|
|
$
|
—
|
|
|
$
|
10,887,612
|
|
COST OF SALES
|
—
|
|
|
7,379,323
|
|
|
1,913,220
|
|
|
—
|
|
|
9,292,543
|
|
|||||
GROSS PROFIT
|
—
|
|
|
1,355,350
|
|
|
239,719
|
|
|
—
|
|
|
1,595,069
|
|
|||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
|
2,722
|
|
|
954,495
|
|
|
213,546
|
|
|
—
|
|
|
1,170,763
|
|
|||||
DEPRECIATION AND AMORTIZATION EXPENSE
|
—
|
|
|
43,472
|
|
|
7,762
|
|
|
—
|
|
|
51,234
|
|
|||||
ASSET IMPAIRMENTS
|
—
|
|
|
21,794
|
|
|
11,044
|
|
|
—
|
|
|
32,838
|
|
|||||
INCOME (LOSS) FROM OPERATIONS
|
(2,722
|
)
|
|
335,589
|
|
|
7,367
|
|
|
—
|
|
|
340,234
|
|
|||||
OTHER EXPENSE:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Floorplan interest expense
|
—
|
|
|
(40,444
|
)
|
|
(4,483
|
)
|
|
—
|
|
|
(44,927
|
)
|
|||||
Other interest income (expense), net
|
—
|
|
|
(64,870
|
)
|
|
(3,066
|
)
|
|
—
|
|
|
(67,936
|
)
|
|||||
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF SUBSIDIARIES
|
(2,722
|
)
|
|
230,275
|
|
|
(182
|
)
|
|
—
|
|
|
227,371
|
|
|||||
BENEFIT (PROVISION) FOR INCOME TAXES
|
1,020
|
|
|
(83,560
|
)
|
|
2,234
|
|
|
—
|
|
|
(80,306
|
)
|
|||||
EQUITY IN EARNINGS OF SUBSIDIARIES
|
148,767
|
|
|
—
|
|
|
—
|
|
|
(148,767
|
)
|
|
—
|
|
|||||
NET INCOME (LOSS)
|
$
|
147,065
|
|
|
$
|
146,715
|
|
|
$
|
2,052
|
|
|
$
|
(148,767
|
)
|
|
$
|
147,065
|
|
COMPREHENSIVE INCOME (LOSS)
|
|
|
|
10,121
|
|
|
(19,081
|
)
|
|
|
|
|
(8,960
|
)
|
|||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO PARENT
|
$
|
147,065
|
|
|
$
|
156,836
|
|
|
$
|
(17,029
|
)
|
|
$
|
(148,767
|
)
|
|
$
|
138,105
|
|
|
Group 1 Automotive, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Total Company
|
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
||||||||
Net cash provided by (used in) operating activities
|
$
|
157,770
|
|
|
$
|
98,934
|
|
|
$
|
13,274
|
|
|
$
|
269,978
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
||||||||
Cash paid in acquisitions, net of cash received
|
—
|
|
|
(91,891
|
)
|
|
(43,452
|
)
|
|
(135,343
|
)
|
||||
Proceeds from disposition of franchises, property and equipment
|
—
|
|
|
101,462
|
|
|
6,412
|
|
|
107,874
|
|
||||
Purchases of property and equipment, including real estate
|
—
|
|
|
(97,229
|
)
|
|
(43,804
|
)
|
|
(141,033
|
)
|
||||
Other
|
501
|
|
|
—
|
|
|
—
|
|
|
501
|
|
||||
Net cash used in (provided by) investing activities
|
501
|
|
|
(87,658
|
)
|
|
(80,844
|
)
|
|
(168,001
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
||||||||
Borrowings on credit facility - floorplan line and other
|
—
|
|
|
6,858,529
|
|
|
95,799
|
|
|
6,954,328
|
|
||||
Repayments on credit facility - floorplan line and other
|
—
|
|
|
(6,797,143
|
)
|
|
(72,913
|
)
|
|
(6,870,056
|
)
|
||||
Borrowings on credit facility - acquisition line
|
165,346
|
|
|
—
|
|
|
—
|
|
|
165,346
|
|
||||
Repayments on credit facility - acquisition line
|
(158,485
|
)
|
|
—
|
|
|
—
|
|
|
(158,485
|
)
|
||||
Borrowings on other debt
|
—
|
|
|
95,799
|
|
|
60,224
|
|
|
156,023
|
|
||||
Principal payments on other debt
|
(24,741
|
)
|
|
(48,924
|
)
|
|
(45,124
|
)
|
|
(118,789
|
)
|
||||
Borrowings on debt related to real estate
|
—
|
|
|
42,657
|
|
|
12,055
|
|
|
54,712
|
|
||||
Principal payments on debt related to real estate
|
—
|
|
|
(77,781
|
)
|
|
(13,686
|
)
|
|
(91,467
|
)
|
||||
Employee stock purchase plan purchases, net of employee tax withholdings
|
2,717
|
|
|
—
|
|
|
—
|
|
|
2,717
|
|
||||
Proceeds from termination of mortgage swap
|
—
|
|
|
918
|
|
|
—
|
|
|
918
|
|
||||
Repurchases of common stock, amounts based on settlement date
|
(183,918
|
)
|
|
—
|
|
|
—
|
|
|
(183,918
|
)
|
||||
Dividends paid
|
(20,872
|
)
|
|
—
|
|
|
—
|
|
|
(20,872
|
)
|
||||
Borrowings (repayments) with subsidiaries
|
289,432
|
|
|
(300,731
|
)
|
|
11,299
|
|
|
—
|
|
||||
Investment in subsidiaries
|
(227,750
|
)
|
|
209,917
|
|
|
17,833
|
|
|
—
|
|
||||
Net cash provided by (used in) financing activities
|
(158,271
|
)
|
|
(16,759
|
)
|
|
65,487
|
|
|
(109,543
|
)
|
||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH
|
—
|
|
|
—
|
|
|
(3,345
|
)
|
|
(3,345
|
)
|
||||
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH
|
—
|
|
|
(5,483
|
)
|
|
(5,428
|
)
|
|
(10,911
|
)
|
||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period
|
—
|
|
|
10,096
|
|
|
19,535
|
|
|
29,631
|
|
||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period
|
$
|
—
|
|
|
$
|
4,613
|
|
|
$
|
14,107
|
|
|
$
|
18,720
|
|
|
Group 1 Automotive, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Total Company
|
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
||||||||
Net cash provided by (used in) operating activities
|
$
|
214,595
|
|
|
$
|
(13,759
|
)
|
|
$
|
(4,321
|
)
|
|
$
|
196,515
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
||||||||
Cash paid in acquisitions, net of cash received
|
—
|
|
|
(62,474
|
)
|
|
(46,607
|
)
|
|
(109,081
|
)
|
||||
Proceeds from disposition of franchises, property and equipment
|
—
|
|
|
8,345
|
|
|
2,363
|
|
|
10,708
|
|
||||
Purchases of property and equipment, including real estate
|
—
|
|
|
(185,342
|
)
|
|
(30,490
|
)
|
|
(215,832
|
)
|
||||
Other
|
—
|
|
|
1,607
|
|
|
—
|
|
|
1,607
|
|
||||
Net cash provided by (used in) investing activities
|
—
|
|
|
(237,864
|
)
|
|
(74,734
|
)
|
|
(312,598
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
||||||||
Borrowings on credit facility - floorplan line and other
|
—
|
|
|
7,019,070
|
|
|
—
|
|
|
7,019,070
|
|
||||
Repayments on credit facility - floorplan line and other
|
—
|
|
|
(6,957,866
|
)
|
|
—
|
|
|
(6,957,866
|
)
|
||||
Borrowings on credit facility - acquisition line
|
68,086
|
|
|
—
|
|
|
—
|
|
|
68,086
|
|
||||
Repayment on credit facility - acquisition line
|
(42,278
|
)
|
|
—
|
|
|
—
|
|
|
(42,278
|
)
|
||||
Borrowings on other debt
|
25,054
|
|
|
19
|
|
|
140,629
|
|
|
165,702
|
|
||||
Principal payments on other debt
|
(313
|
)
|
|
(718
|
)
|
|
(120,168
|
)
|
|
(121,199
|
)
|
||||
Borrowings on debt related to real estate
|
—
|
|
|
46,419
|
|
|
28,890
|
|
|
75,309
|
|
||||
Principal payments on debt related to real estate loans
|
—
|
|
|
(22,931
|
)
|
|
(6,460
|
)
|
|
(29,391
|
)
|
||||
Issuance of common stock to benefit plans, net
|
4,603
|
|
|
—
|
|
|
—
|
|
|
4,603
|
|
||||
Repurchases of common stock, amounts based on settlement date
|
(40,094
|
)
|
|
—
|
|
|
—
|
|
|
(40,094
|
)
|
||||
Dividends paid
|
(20,466
|
)
|
|
—
|
|
|
—
|
|
|
(20,466
|
)
|
||||
Borrowings (repayments) with subsidiaries
|
2,892
|
|
|
(32,719
|
)
|
|
29,827
|
|
|
—
|
|
||||
Investment in subsidiaries
|
(212,079
|
)
|
|
202,406
|
|
|
9,673
|
|
|
—
|
|
||||
Net cash provided by (used in) financing activities
|
(214,595
|
)
|
|
253,680
|
|
|
82,391
|
|
|
121,476
|
|
||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
(8
|
)
|
||||
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH
|
—
|
|
|
2,057
|
|
|
3,328
|
|
|
5,385
|
|
||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period
|
—
|
|
|
8,039
|
|
|
16,207
|
|
|
24,246
|
|
||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period
|
$
|
—
|
|
|
$
|
10,096
|
|
|
$
|
19,535
|
|
|
$
|
29,631
|
|
|
Group 1 Automotive, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Total Company
|
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
||||||||
Net cash provided by (used in) operating activities
|
$
|
147,065
|
|
|
$
|
238,552
|
|
|
$
|
(1,520
|
)
|
|
$
|
384,097
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
||||||||
Cash paid in acquisitions, net of cash received
|
—
|
|
|
—
|
|
|
(57,327
|
)
|
|
(57,327
|
)
|
||||
Proceeds from disposition of franchises, property and equipment
|
—
|
|
|
35,317
|
|
|
1,526
|
|
|
36,843
|
|
||||
Purchases of property and equipment, including real estate
|
—
|
|
|
(138,263
|
)
|
|
(18,258
|
)
|
|
(156,521
|
)
|
||||
Other
|
—
|
|
|
2,748
|
|
|
217
|
|
|
2,965
|
|
||||
Net cash provided by (used in) investing activities
|
—
|
|
|
(100,198
|
)
|
|
(73,842
|
)
|
|
(174,040
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
||||||||
Borrowings on credit facility - floorplan line and other
|
—
|
|
|
6,597,406
|
|
|
—
|
|
|
6,597,406
|
|
||||
Repayments on credit facility - floorplan line and other
|
—
|
|
|
(6,676,161
|
)
|
|
—
|
|
|
(6,676,161
|
)
|
||||
Borrowings on credit facility - acquisition line
|
220,020
|
|
|
—
|
|
|
—
|
|
|
220,020
|
|
||||
Repayment on credit facility - acquisition line
|
(220,020
|
)
|
|
—
|
|
|
—
|
|
|
(220,020
|
)
|
||||
Borrowings on other debt
|
—
|
|
|
—
|
|
|
49,972
|
|
|
49,972
|
|
||||
Principal payments on other debt
|
—
|
|
|
(923
|
)
|
|
(45,005
|
)
|
|
(45,928
|
)
|
||||
Borrowings on debt related to real estate, net of debt issue costs
|
(2,997
|
)
|
|
42,138
|
|
|
—
|
|
|
39,141
|
|
||||
Principal payments on debt related to real estate loans
|
—
|
|
|
(20,309
|
)
|
|
(5,154
|
)
|
|
(25,463
|
)
|
||||
Issuance of common stock to benefit plans, net
|
3,868
|
|
|
—
|
|
|
—
|
|
|
3,868
|
|
||||
Repurchases of common stock, amounts based on settlement date
|
(127,606
|
)
|
|
—
|
|
|
—
|
|
|
(127,606
|
)
|
||||
Tax effect from stock-based compensation
|
(249
|
)
|
|
—
|
|
|
—
|
|
|
(249
|
)
|
||||
Dividends paid
|
(19,987
|
)
|
|
—
|
|
|
—
|
|
|
(19,987
|
)
|
||||
Borrowings (repayments) with subsidiaries
|
399,151
|
|
|
(406,888
|
)
|
|
7,737
|
|
|
—
|
|
||||
Investment in subsidiaries
|
(399,245
|
)
|
|
328,084
|
|
|
71,161
|
|
|
—
|
|
||||
Net cash provided by (used in) financing activities
|
(147,065
|
)
|
|
(136,653
|
)
|
|
78,711
|
|
|
(205,007
|
)
|
||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH
|
—
|
|
|
—
|
|
|
2,145
|
|
|
2,145
|
|
||||
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH
|
—
|
|
|
1,701
|
|
|
5,494
|
|
|
7,195
|
|
||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period
|
—
|
|
|
6,338
|
|
|
10,713
|
|
|
17,051
|
|
||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period
|
$
|
—
|
|
|
$
|
8,039
|
|
|
$
|
16,207
|
|
|
$
|
24,246
|
|
Consent of Independent Registered Public Accounting Firm
|
We consent to the incorporation by reference in the following Registration Statements:
|
(1) Registration Statement (Form S-3 ASR No. 333-228176) of Group 1 Automotive, Inc.,
|
(2) Registration Statement (Form S-8 No. 333-205923) pertaining to the Group 1 Automotive, Inc. Employee Stock Purchase Plan,
|
(3) Registration Statement (Form S-8 No. 333-145034) pertaining to the Group 1 Automotive, Inc. Deferred Compensation Plan and the Group 1 Automotive Inc. 2007 Long Term Incentive Plan, and
|
(4) Registration Statement (Form S-8 No. 333-196424) pertaining to the Group 1 Automotive, Inc. 2014 Long Term Incentive Plan.
|
of our reports dated February 19, 2019, with respect to the consolidated financial statements and the related notes of Group 1 Automotive, Inc. and subsidiaries and the effectiveness of internal control over financial reporting of Group 1 Automotive, Inc. and subsidiaries included in this Annual Report (Form 10-K) of Group 1 Automotive, Inc. and subsidiaries for the year ended December 31, 2018.
|
|
/s/ Ernst & Young LLP
|
|
Houston, Texas
February 19, 2019
|
1.
|
I have reviewed this Annual Report on Form 10-K for the fiscal year ended
December 31, 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 Annual Report on Form 10-K for the fiscal year ended
December 31, 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
|