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þ
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
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|
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Delaware
|
|
76-0506313
|
||
(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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||
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800 Gessner, Suite 500
Houston, Texas 77024
(Address of principal executive offices) (Zip code)
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(713) 647-5700
(Registrant’s telephone number, including area code)
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Large accelerated filer
|
þ
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¨
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Accelerated filer
|
|
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|
||
Non-accelerated filer
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¨
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¨
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Smaller reporting company
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¨
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Emerging growth company
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Item 1.
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|
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Item 2.
|
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Item 3.
|
||
Item 4.
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||
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Item 1.
|
||
Item 1A.
|
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Item 2.
|
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Item 6.
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||
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Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
REVENUES:
|
|
|
|
|
||||
New vehicle retail sales
|
|
$
|
1,414,485
|
|
|
$
|
1,513,590
|
|
Used vehicle retail sales
|
|
819,203
|
|
|
780,570
|
|
||
Used vehicle wholesale sales
|
|
92,138
|
|
|
104,029
|
|
||
Parts and service sales
|
|
369,174
|
|
|
349,515
|
|
||
Finance, insurance and other, net
|
|
113,376
|
|
|
112,322
|
|
||
Total revenues
|
|
2,808,376
|
|
|
2,860,026
|
|
||
COST OF SALES:
|
|
|
|
|
||||
New vehicle retail sales
|
|
1,343,094
|
|
|
1,438,163
|
|
||
Used vehicle retail sales
|
|
771,394
|
|
|
737,075
|
|
||
Used vehicle wholesale sales
|
|
91,687
|
|
|
102,374
|
|
||
Parts and service sales
|
|
170,698
|
|
|
162,651
|
|
||
Total cost of sales
|
|
2,376,873
|
|
|
2,440,263
|
|
||
GROSS PROFIT
|
|
431,503
|
|
|
419,763
|
|
||
Selling, general and administrative expenses
|
|
327,708
|
|
|
324,347
|
|
||
Depreciation and amortization expense
|
|
16,997
|
|
|
16,342
|
|
||
INCOME (LOSS) FROM OPERATIONS
|
|
86,798
|
|
|
79,074
|
|
||
OTHER INCOME (EXPENSE):
|
|
|
|
|
||||
Floorplan interest expense
|
|
(15,703
|
)
|
|
(14,087
|
)
|
||
Other interest expense, net
|
|
(18,919
|
)
|
|
(18,820
|
)
|
||
INCOME (LOSS) BEFORE INCOME TAXES
|
|
52,176
|
|
|
46,167
|
|
||
Benefit (provision) for income taxes
|
|
(13,528
|
)
|
|
(10,353
|
)
|
||
NET INCOME (LOSS)
|
|
$
|
38,648
|
|
|
$
|
35,814
|
|
BASIC EARNINGS (LOSS) PER SHARE
|
|
$
|
2.09
|
|
|
$
|
1.70
|
|
Weighted average common shares outstanding
|
|
17,797
|
|
|
20,298
|
|
||
DILUTED EARNINGS (LOSS) PER SHARE
|
|
$
|
2.08
|
|
|
$
|
1.70
|
|
Weighted average common shares outstanding
|
|
17,849
|
|
|
20,307
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
NET INCOME (LOSS)
|
|
$
|
38,648
|
|
|
35,814
|
|
|
Other comprehensive income (loss):
|
|
|
|
|
||||
Foreign currency translation adjustment
|
|
3,607
|
|
|
7,871
|
|
||
Net unrealized gain (loss) on interest rate risk management activities, net of tax:
|
|
|
|
|
||||
Unrealized gain (loss) arising during the period, net of tax benefit (provision) of $1,316 and ($2,492), respectively
|
|
(4,238
|
)
|
|
7,892
|
|
||
Reclassification adjustment for (gain) loss included in interest expense, net of tax (benefit) provision of $108 and ($478), respectively
|
|
(346
|
)
|
|
1,513
|
|
||
Unrealized gain (loss) on interest rate risk management activities, net of tax
|
|
(4,584
|
)
|
|
9,405
|
|
||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES
|
|
(977
|
)
|
|
17,276
|
|
||
COMPREHENSIVE INCOME (LOSS)
|
|
$
|
37,671
|
|
|
$
|
53,090
|
|
|
|
Common Stock
|
|
Additional
Paid-in Capital
|
|
Retained Earnings
|
|
Accumulated
Other
Comprehensive Income (Loss)
|
|
Treasury Stock
|
|
Total
|
|||||||||||||||
|
|
Shares
|
|
Amount
|
|
|
|
|
|
||||||||||||||||||
BALANCE, December 31, 2018
|
|
25,494
|
|
|
$
|
255
|
|
|
$
|
292,774
|
|
|
$
|
1,394,817
|
|
|
$
|
(137,772
|
)
|
|
$
|
(454,380
|
)
|
|
$
|
1,095,694
|
|
Net income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38,648
|
|
|
—
|
|
|
—
|
|
|
38,648
|
|
||||||
Other comprehensive income (loss), net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(977
|
)
|
|
—
|
|
|
(977
|
)
|
||||||
Net issuance of treasury shares to employee stock compensation plans
|
|
28
|
|
|
—
|
|
|
(11,726
|
)
|
|
—
|
|
|
—
|
|
|
10,896
|
|
|
(830
|
)
|
||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
6,067
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,067
|
|
||||||
Dividends paid, net of estimated forfeitures relative to participating securities ($0.26)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,828
|
)
|
|
—
|
|
|
—
|
|
|
(4,828
|
)
|
||||||
ASC 842 cumulative adjustment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,061
|
)
|
|
—
|
|
|
—
|
|
|
(6,061
|
)
|
||||||
BALANCE, March 31, 2019
|
|
25,522
|
|
|
$
|
255
|
|
|
$
|
287,115
|
|
|
$
|
1,422,576
|
|
|
$
|
(138,749
|
)
|
|
$
|
(443,484
|
)
|
|
$
|
1,127,713
|
|
|
|
Common Stock
|
|
Additional
Paid-in Capital
|
|
Retained Earnings
|
|
Accumulated
Other
Comprehensive Income (Loss)
|
|
Treasury Stock
|
|
Total
|
|||||||||||||||
|
|
Shares
|
|
Amount
|
|
|
|
|
|
||||||||||||||||||
BALANCE, December 31, 2017
|
|
25,515
|
|
|
$
|
255
|
|
|
$
|
291,461
|
|
|
$
|
1,246,323
|
|
|
$
|
(123,226
|
)
|
|
$
|
(290,531
|
)
|
|
$
|
1,124,282
|
|
Net income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35,814
|
|
|
—
|
|
|
—
|
|
|
35,814
|
|
||||||
Other comprehensive income (loss), net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,276
|
|
|
—
|
|
|
17,276
|
|
||||||
Purchases of treasury stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,199
|
)
|
|
(9,199
|
)
|
||||||
Net issuance of treasury shares to employee stock compensation plans
|
|
12
|
|
|
—
|
|
|
(10,846
|
)
|
|
—
|
|
|
—
|
|
|
9,208
|
|
|
(1,638
|
)
|
||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
5,629
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,629
|
|
||||||
Dividends paid, net of estimated forfeitures relative to participating securities ($0.26)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,482
|
)
|
|
—
|
|
|
—
|
|
|
(5,482
|
)
|
||||||
ASC 606 cumulative adjustment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,397
|
|
|
—
|
|
|
—
|
|
|
11,397
|
|
||||||
BALANCE, March 31, 2018
|
|
25,527
|
|
|
$
|
255
|
|
|
$
|
286,244
|
|
|
$
|
1,288,052
|
|
|
$
|
(105,950
|
)
|
|
$
|
(290,522
|
)
|
|
$
|
1,178,079
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
||||
Net income (loss)
|
|
$
|
38,648
|
|
|
$
|
35,814
|
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
|
|
|
|
|
||||
Depreciation and amortization
|
|
16,997
|
|
|
16,342
|
|
||
Change in operating lease assets
|
|
7,624
|
|
|
—
|
|
||
Deferred income taxes
|
|
4,088
|
|
|
2,675
|
|
||
Stock-based compensation
|
|
6,080
|
|
|
5,642
|
|
||
Amortization of debt discount and issue costs
|
|
946
|
|
|
650
|
|
||
(Gain) loss on disposition of assets
|
|
(5,778
|
)
|
|
(516
|
)
|
||
Other
|
|
234
|
|
|
(6
|
)
|
||
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
|
|
|
|
|
||||
Accounts payable and accrued expenses
|
|
101,618
|
|
|
65,200
|
|
||
Accounts and notes receivable
|
|
9,155
|
|
|
12,727
|
|
||
Inventories
|
|
(28,058
|
)
|
|
7,153
|
|
||
Contracts-in-transit and vehicle receivables
|
|
5,117
|
|
|
11,237
|
|
||
Prepaid expenses and other assets
|
|
(17,672
|
)
|
|
(12,548
|
)
|
||
Floorplan notes payable - manufacturer affiliates
|
|
(2,468
|
)
|
|
5,067
|
|
||
Deferred revenues
|
|
(178
|
)
|
|
(655
|
)
|
||
Operating lease liabilities
|
|
(8,414
|
)
|
|
—
|
|
||
Net cash provided by (used in) operating activities
|
|
127,939
|
|
|
148,782
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
||||
Cash paid for acquisitions, net of cash received
|
|
—
|
|
|
(71,499
|
)
|
||
Proceeds from disposition of franchises, property and equipment
|
|
35,125
|
|
|
2,940
|
|
||
Purchases of property and equipment, including real estate
|
|
(41,711
|
)
|
|
(47,948
|
)
|
||
Other
|
|
(200
|
)
|
|
140
|
|
||
Net cash provided by (used in) investing activities
|
|
(6,786
|
)
|
|
(116,367
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
||||
Borrowings on credit facility - floorplan line and other
|
|
1,631,544
|
|
|
1,656,192
|
|
||
Repayments on credit facility - floorplan line and other
|
|
(1,697,455
|
)
|
|
(1,702,447
|
)
|
||
Borrowings on credit facility - acquisition line
|
|
107,777
|
|
|
66,945
|
|
||
Repayments on credit facility - acquisition line
|
|
(111,466
|
)
|
|
(66,444
|
)
|
||
Borrowings on other debt
|
|
20,329
|
|
|
65,614
|
|
||
Principal payments on other debt
|
|
(26,693
|
)
|
|
(40,078
|
)
|
||
Borrowings on debt related to real estate, net of debt issue costs
|
|
—
|
|
|
46,835
|
|
||
Principal payments on debt related to real estate
|
|
(20,864
|
)
|
|
(37,819
|
)
|
||
Employee stock purchase plan purchases, net of employee tax withholdings
|
|
(830
|
)
|
|
(1,638
|
)
|
||
Repurchases of common stock, amounts based on settlement date
|
|
—
|
|
|
(9,199
|
)
|
||
Dividends paid
|
|
(4,841
|
)
|
|
(5,495
|
)
|
||
Net cash provided by (used in) financing activities
|
|
(102,499
|
)
|
|
(27,534
|
)
|
||
Effect of exchange rate changes on cash
|
|
(519
|
)
|
|
47
|
|
||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
|
18,135
|
|
|
4,928
|
|
||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period
|
|
18,720
|
|
|
29,631
|
|
||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period
|
|
$
|
36,855
|
|
|
$
|
34,559
|
|
SUPPLEMENTAL CASH FLOW INFORMATION:
|
|
|
|
|
||||
Purchases of property and equipment, including real estate, accrued in accounts payable
|
|
$
|
5,094
|
|
|
$
|
6,066
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Cash and cash equivalents
|
|
$
|
33,623
|
|
|
$
|
15,932
|
|
Restricted cash, included in Prepaid expenses and other current assets
|
|
3,232
|
|
|
2,788
|
|
||
Total cash, cash equivalents, and restricted cash
|
|
$
|
36,855
|
|
|
$
|
18,720
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
REVENUES:
|
|
|
|
|
||||
New vehicle retail sales
|
|
$
|
1,414,485
|
|
|
$
|
1,513,590
|
|
Used vehicle retail sales
|
|
819,203
|
|
|
780,570
|
|
||
Used vehicle wholesale sales
|
|
92,138
|
|
|
104,029
|
|
||
Total new and used vehicle sales
|
|
2,325,826
|
|
|
2,398,189
|
|
||
|
|
|
|
|
||||
Vehicle parts sales
|
|
86,661
|
|
|
85,196
|
|
||
Maintenance and repair sales
|
|
282,513
|
|
|
264,319
|
|
||
Total parts and service sales
|
|
369,174
|
|
|
349,515
|
|
||
|
|
|
|
|
||||
Finance, insurance and other, net
|
|
113,376
|
|
|
112,322
|
|
||
Total revenues
|
|
$
|
2,808,376
|
|
|
$
|
2,860,026
|
|
|
|
Three Months Ended March 31, 2019
|
||||||||||||||
|
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
||||||||
REVENUES:
|
|
|
|
|
|
|
|
|
||||||||
New vehicle retail sales
|
|
$
|
1,031,742
|
|
|
$
|
318,571
|
|
|
$
|
64,172
|
|
|
$
|
1,414,485
|
|
Used vehicle retail sales
|
|
594,418
|
|
|
203,561
|
|
|
21,224
|
|
|
819,203
|
|
||||
Used vehicle wholesale sales
|
|
42,827
|
|
|
45,261
|
|
|
4,050
|
|
|
92,138
|
|
||||
Total new and used vehicle sales
|
|
1,668,987
|
|
|
567,393
|
|
|
89,446
|
|
|
2,325,826
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Vehicle parts sales
|
|
74,478
|
|
|
10,602
|
|
|
1,581
|
|
|
86,661
|
|
||||
Maintenance and repair sales
|
|
223,124
|
|
|
48,964
|
|
|
10,425
|
|
|
282,513
|
|
||||
Total parts and service sales
|
|
297,602
|
|
|
59,566
|
|
|
12,006
|
|
|
369,174
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Finance, insurance and other, net
|
|
96,193
|
|
|
15,199
|
|
|
1,984
|
|
|
113,376
|
|
||||
Total revenues
|
|
$
|
2,062,782
|
|
|
$
|
642,158
|
|
|
$
|
103,436
|
|
|
$
|
2,808,376
|
|
|
|
Three Months Ended March 31, 2018
|
||||||||||||||
|
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
||||||||
REVENUES:
|
|
|
|
|
|
|
|
|
||||||||
New vehicle retail sales
|
|
$
|
1,089,953
|
|
|
$
|
354,404
|
|
|
$
|
69,233
|
|
|
$
|
1,513,590
|
|
Used vehicle retail sales
|
|
563,830
|
|
|
192,549
|
|
|
24,191
|
|
|
780,570
|
|
||||
Used vehicle wholesale sales
|
|
54,002
|
|
|
46,185
|
|
|
3,842
|
|
|
104,029
|
|
||||
Total new and used vehicle sales
|
|
1,707,785
|
|
|
593,138
|
|
|
97,266
|
|
|
2,398,189
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Vehicle parts sales
|
|
74,355
|
|
|
9,515
|
|
|
1,326
|
|
|
85,196
|
|
||||
Maintenance and repair sales
|
|
210,159
|
|
|
43,626
|
|
|
10,534
|
|
|
264,319
|
|
||||
Total parts and service sales
|
|
284,514
|
|
|
53,141
|
|
|
11,860
|
|
|
349,515
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Finance, insurance and other, net
|
|
96,187
|
|
|
14,263
|
|
|
1,872
|
|
|
112,322
|
|
||||
Total revenues
|
|
$
|
2,088,486
|
|
|
$
|
660,542
|
|
|
$
|
110,998
|
|
|
$
|
2,860,026
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Assets from interest rate risk management activities:
|
|
|
|
|
||||
Prepaid expenses and other current assets
|
|
$
|
189
|
|
|
$
|
444
|
|
Other assets
|
|
8,251
|
|
|
13,132
|
|
||
Total
|
|
$
|
8,440
|
|
|
$
|
13,576
|
|
|
|
|
|
|
||||
Liabilities from interest rate risk management activities:
|
|
|
|
|
||||
Accrued expenses and other current liabilities
|
|
$
|
254
|
|
|
$
|
115
|
|
Liabilities from interest rate risk management activities
|
|
2,430
|
|
|
1,696
|
|
||
Total
|
|
$
|
2,684
|
|
|
$
|
1,811
|
|
|
|
Amount of Unrealized Income (Loss), Net of Tax, Recognized in Other Comprehensive Income (Loss)
|
||||||
|
|
Three Months Ended March 31,
|
||||||
Derivatives in Cash Flow Hedging Relationship
|
|
2019
|
|
2018
|
||||
Interest rate derivative instruments
|
|
$
|
(4,238
|
)
|
|
$
|
7,892
|
|
|
|
|
|
|
||||
|
|
Amount of Income (Loss) Reclassified from Other Comprehensive Income (Loss) into Statements of Operations
|
||||||
Location of Income (Loss) Reclassified from Other Comprehensive Income (Loss) into Statements of Operations
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
|||||
Floorplan interest expense, net
|
|
$
|
344
|
|
|
$
|
(1,737
|
)
|
Other interest expense, net
|
|
110
|
|
|
(254
|
)
|
|
|
Awards
|
|
Weighted Average
Grant Date
Fair Value
|
|||
Nonvested at December 31, 2018
|
|
681,800
|
|
|
$
|
71.60
|
|
Granted
|
|
202,831
|
|
|
60.84
|
|
|
Vested
|
|
(172,775
|
)
|
|
68.99
|
|
|
Forfeited
|
|
(2,000
|
)
|
|
75.97
|
|
|
Nonvested at March 31, 2019
|
|
709,856
|
|
|
$
|
69.17
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Weighted average basic common shares outstanding
|
|
17,797
|
|
|
20,298
|
|
||
Dilutive effect of stock awards and employee stock purchases, net of assumed repurchase of treasury stock
|
|
52
|
|
|
9
|
|
||
Weighted average dilutive common shares outstanding
|
|
17,849
|
|
|
20,307
|
|
||
Basic:
|
|
|
|
|
||||
Net income (loss)
|
|
$
|
38,648
|
|
|
$
|
35,814
|
|
Less: Earnings (loss) allocated to participating securities
|
|
1,458
|
|
|
1,209
|
|
||
Net income (loss) available to basic common shares
|
|
$
|
37,190
|
|
|
$
|
34,605
|
|
Basic earnings (loss) per common share
|
|
$
|
2.09
|
|
|
$
|
1.70
|
|
Diluted:
|
|
|
|
|
||||
Net income (loss)
|
|
$
|
38,648
|
|
|
$
|
35,814
|
|
Less: Earnings (loss) allocated to participating securities
|
|
1,455
|
|
|
1,208
|
|
||
Net income (loss) available to basic common shares
|
|
$
|
37,193
|
|
|
$
|
34,606
|
|
Diluted earnings (loss) per common share
|
|
$
|
2.08
|
|
|
$
|
1.70
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Amounts due from manufacturers
|
|
$
|
101,797
|
|
|
$
|
105,140
|
|
Parts and service receivables
|
|
54,267
|
|
|
51,922
|
|
||
Finance and insurance receivables
|
|
22,441
|
|
|
26,446
|
|
||
Other
|
|
9,880
|
|
|
13,673
|
|
||
Total accounts and notes receivable
|
|
188,385
|
|
|
197,181
|
|
||
Less: allowance for doubtful accounts
|
|
3,074
|
|
|
3,200
|
|
||
Accounts and notes receivable, net
|
|
$
|
185,311
|
|
|
$
|
193,981
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
New vehicles
|
|
$
|
1,303,397
|
|
|
$
|
1,278,863
|
|
Used vehicles
|
|
343,033
|
|
|
350,219
|
|
||
Rental vehicles
|
|
143,372
|
|
|
142,926
|
|
||
Parts, accessories and other
|
|
79,629
|
|
|
80,556
|
|
||
Total inventories
|
|
1,869,431
|
|
|
1,852,564
|
|
||
Less: lower of cost or net realizable value allowance
|
|
8,524
|
|
|
8,505
|
|
||
Inventories, net
|
|
$
|
1,860,907
|
|
|
$
|
1,844,059
|
|
|
|
Estimated Useful Lives in Years
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Land
|
|
—
|
|
$
|
499,272
|
|
|
$
|
487,618
|
|
Buildings
|
|
25 to 50
|
|
739,702
|
|
|
727,826
|
|
||
Leasehold improvements
|
|
Varies
|
|
186,382
|
|
|
189,248
|
|
||
Machinery and equipment
|
|
7 to 20
|
|
128,347
|
|
|
125,919
|
|
||
Furniture and fixtures
|
|
3 to 10
|
|
112,909
|
|
|
109,274
|
|
||
Company vehicles
|
|
3 to 5
|
|
14,871
|
|
|
12,333
|
|
||
Construction in progress
|
|
—
|
|
48,372
|
|
|
42,959
|
|
||
Total
|
|
|
|
1,729,855
|
|
|
1,695,177
|
|
||
Less: accumulated depreciation and amortization
|
|
|
|
359,112
|
|
|
347,342
|
|
||
Property and equipment, net
|
|
|
|
$
|
1,370,743
|
|
|
$
|
1,347,835
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
5.00% Senior Notes (aggregate principal of $550,000)
|
|
$
|
544,158
|
|
|
$
|
543,730
|
|
5.25% Senior Notes (aggregate principal of $300,000)
|
|
296,884
|
|
|
296,735
|
|
||
Acquisition Line
|
|
29,342
|
|
|
31,842
|
|
||
Real estate related and other long-term debt
|
|
422,396
|
|
|
445,248
|
|
||
Finance leases related to real estate
(1)
|
|
47,339
|
|
|
48,612
|
|
||
Total debt
|
|
1,340,119
|
|
|
1,366,167
|
|
||
Less: current maturities of long-term debt
|
|
77,537
|
|
|
84,678
|
|
||
Long-term debt, net of current maturities
|
|
$
|
1,262,582
|
|
|
$
|
1,281,489
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Assets:
|
|
|
|
|
||||
Investments
|
|
$
|
3,232
|
|
|
$
|
2,788
|
|
Demand obligations
|
|
13
|
|
|
13
|
|
||
Interest rate derivative financial instruments
|
|
8,440
|
|
|
13,576
|
|
||
Total
|
|
$
|
11,685
|
|
|
$
|
16,377
|
|
Liabilities:
|
|
|
|
|
||||
Interest rate derivative financial instruments
|
|
$
|
2,684
|
|
|
$
|
1,811
|
|
Total
|
|
$
|
2,684
|
|
|
$
|
1,811
|
|
Leases
|
|
Balance Sheet Classification
|
|
March 31, 2019
|
||
Assets:
|
|
|
|
|
||
Operating
|
|
Operating lease assets
|
|
$
|
214,776
|
|
Finance
|
|
Property and equipment, net
|
|
41,634
|
|
|
Total
|
|
|
|
$
|
256,410
|
|
Liabilities:
|
|
|
|
|
||
Current
|
|
|
|
|
||
Operating
|
|
Current operating lease liabilities
|
|
$
|
23,907
|
|
Finance
|
|
Current maturities of long-term debt and short-term financing
|
|
6,025
|
|
|
Noncurrent
|
|
|
|
|
||
Operating
|
|
Operating lease liabilities, net of current portion
|
|
204,331
|
|
|
Finance
|
|
Long-term debt, net of current maturities
|
|
41,314
|
|
|
Total
|
|
|
|
$
|
275,577
|
|
|
|
March 31, 2019
|
||||||
|
|
Operating Leases
|
|
Finance Leases
|
||||
2019 (excluding the three months ended March 31, 2019)
|
|
$
|
26,054
|
|
|
$
|
7,771
|
|
2020
|
|
37,710
|
|
|
7,765
|
|
||
2021
|
|
34,646
|
|
|
7,758
|
|
||
2022
|
|
30,893
|
|
|
5,378
|
|
||
2023
|
|
27,869
|
|
|
5,637
|
|
||
Thereafter
|
|
164,742
|
|
|
40,416
|
|
||
Total lease payments
|
|
321,914
|
|
|
74,725
|
|
||
Less: Interest
|
|
(93,676
|
)
|
|
(27,386
|
)
|
||
Present value of lease liabilities
|
|
$
|
228,238
|
|
|
$
|
47,339
|
|
Lease Expense
|
|
Income Statement Classification
|
|
Three Months Ended March 31,
|
||
|
|
|
|
2019
|
||
Operating
(1)
|
|
Selling, general and administrative expenses
|
|
$
|
10,950
|
|
Finance:
|
|
|
|
|
||
Amortization of lease assets
|
|
Depreciation and amortization expense
|
|
1,123
|
|
|
Interest on lease liabilities
|
|
Other interest expense, net
|
|
972
|
|
|
Sublease income
(2)
|
|
Selling, general and administrative expenses
|
|
(320
|
)
|
|
Net lease expense
|
|
|
|
$
|
12,725
|
|
Other Information
|
|
Three Months Ended March 31,
|
||
|
|
2019
|
||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
||
Operating cash flows from operating leases
|
|
$
|
11,664
|
|
Operating cash flows from finance leases
|
|
972
|
|
|
Financing cash flows from finance leases
|
|
969
|
|
|
Right-of-use assets obtained in exchange for lease obligations:
|
|
|
||
Operating leases
|
|
$
|
5,032
|
|
|
Intangible Franchise Rights
|
||||||||||||||
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
||||||||
Balance, December 31, 2018
|
$
|
224,394
|
|
|
$
|
35,092
|
|
|
$
|
144
|
|
|
$
|
259,630
|
|
Currency translation
|
—
|
|
|
837
|
|
|
(2
|
)
|
|
835
|
|
||||
Balance, March 31, 2019
|
$
|
224,394
|
|
|
$
|
35,929
|
|
|
$
|
142
|
|
|
$
|
260,465
|
|
|
Goodwill
|
||||||||||||||
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
||||||||
Balance, December 31, 2018
|
$
|
861,628
|
|
|
$
|
87,587
|
|
|
$
|
14,710
|
|
|
$
|
963,925
|
|
Disposals and purchase price allocation adjustments
|
33
|
|
|
—
|
|
|
—
|
|
|
33
|
|
||||
Currency translation
|
—
|
|
|
2,090
|
|
|
(166
|
)
|
|
1,924
|
|
||||
Balance, March 31, 2019
|
$
|
861,661
|
|
|
$
|
89,677
|
|
|
$
|
14,544
|
|
|
$
|
965,882
|
|
|
|
Three Months Ended March 31, 2019
|
||||||||||
|
|
Accumulated income (loss) on foreign currency translation
|
|
Accumulated income (loss) on interest rate swaps
|
|
Total
|
||||||
Balance, December 31, 2018
|
|
$
|
(146,708
|
)
|
|
$
|
8,936
|
|
|
$
|
(137,772
|
)
|
Other comprehensive income (loss) before reclassifications:
|
|
|
|
|
|
|
||||||
Pre-tax
|
|
3,607
|
|
|
(5,554
|
)
|
|
(1,947
|
)
|
|||
Tax effect
|
|
—
|
|
|
1,316
|
|
|
1,316
|
|
|||
Amounts reclassified from accumulated other comprehensive income (loss) to:
|
|
|
|
|
|
|
|
|||||
Floorplan interest expense (pre-tax)
|
|
—
|
|
|
(344
|
)
|
|
(344
|
)
|
|||
Other interest expense, net (pre-tax)
|
|
—
|
|
|
(110
|
)
|
|
(110
|
)
|
|||
Tax effect
|
|
—
|
|
|
108
|
|
|
108
|
|
|||
Net current period other comprehensive income (loss)
|
|
3,607
|
|
|
(4,584
|
)
|
|
(977
|
)
|
|||
Balance, March 31, 2019
|
|
$
|
(143,101
|
)
|
|
$
|
4,352
|
|
|
$
|
(138,749
|
)
|
|
|
Three Months Ended March 31, 2018
|
||||||||||
|
|
Accumulated income (loss) on foreign currency translation
|
|
Accumulated income (loss) on interest rate swaps
|
|
Total
|
||||||
Balance, December 31, 2017
|
|
$
|
(122,552
|
)
|
|
$
|
(674
|
)
|
|
$
|
(123,226
|
)
|
Other comprehensive income (loss) before reclassifications:
|
|
|
|
|
|
|
||||||
Pre-tax
|
|
7,871
|
|
|
10,384
|
|
|
18,255
|
|
|||
Tax effect
|
|
—
|
|
|
(2,492
|
)
|
|
(2,492
|
)
|
|||
Amounts reclassified from accumulated other comprehensive income (loss) to:
|
|
|
|
|
|
|
||||||
Floorplan interest expense (pre-tax)
|
|
—
|
|
|
1,737
|
|
|
1,737
|
|
|||
Other interest expense, net (pre-tax)
|
|
—
|
|
|
254
|
|
|
254
|
|
|||
Tax effect
|
|
—
|
|
|
(478
|
)
|
|
(478
|
)
|
|||
Net current period other comprehensive income (loss)
|
|
7,871
|
|
|
9,405
|
|
|
17,276
|
|
|||
Balance, March 31, 2018
|
|
$
|
(114,681
|
)
|
|
$
|
8,731
|
|
|
$
|
(105,950
|
)
|
|
Three Months Ended March 31, 2019
|
||||||||||||||
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
||||||||
Total revenues
|
$
|
2,062,782
|
|
|
$
|
642,158
|
|
|
$
|
103,436
|
|
|
$
|
2,808,376
|
|
Income (loss) before income taxes
|
46,367
|
|
|
6,244
|
|
|
(435
|
)
|
|
52,176
|
|
||||
Benefit (provision) for income taxes
|
(12,413
|
)
|
|
(1,096
|
)
|
|
(19
|
)
|
|
(13,528
|
)
|
||||
Net income (loss)
(1)
|
33,954
|
|
|
5,148
|
|
|
(454
|
)
|
|
38,648
|
|
|
Three Months Ended March 31, 2018
|
||||||||||||||
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
||||||||
Total revenues
|
$
|
2,088,486
|
|
|
$
|
660,542
|
|
|
$
|
110,998
|
|
|
$
|
2,860,026
|
|
Income (loss) before income taxes
|
40,510
|
|
|
5,737
|
|
|
(80
|
)
|
|
46,167
|
|
||||
Benefit (provision) for income taxes
|
(9,357
|
)
|
|
(862
|
)
|
|
(134
|
)
|
|
(10,353
|
)
|
||||
Net income (loss)
|
31,153
|
|
|
4,875
|
|
|
(214
|
)
|
|
35,814
|
|
|
As of March 31, 2019
|
||||||||||||||
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
||||||||
Total assets
|
$
|
4,213,916
|
|
|
$
|
917,655
|
|
|
$
|
131,920
|
|
|
$
|
5,263,491
|
|
|
As of December 31, 2018
|
||||||||||||||
|
U.S.
|
|
U.K.
|
|
Brazil
|
|
Total
|
||||||||
Total assets
(1)
|
$
|
4,113,049
|
|
|
$
|
756,350
|
|
|
$
|
131,676
|
|
|
$
|
5,001,075
|
|
|
Group 1 Automotive, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Elimination
|
|
Total Company
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
2,062,782
|
|
|
$
|
745,594
|
|
|
$
|
—
|
|
|
$
|
2,808,376
|
|
Cost of Sales
|
—
|
|
|
1,715,865
|
|
|
661,008
|
|
|
—
|
|
|
2,376,873
|
|
|||||
Gross Profit
|
—
|
|
|
346,917
|
|
|
84,586
|
|
|
—
|
|
|
431,503
|
|
|||||
Selling, General and Administrative Expenses
|
1,891
|
|
|
252,044
|
|
|
73,773
|
|
|
—
|
|
|
327,708
|
|
|||||
Depreciation and Amortization Expense
|
—
|
|
|
13,234
|
|
|
3,763
|
|
|
—
|
|
|
16,997
|
|
|||||
Income (loss) from operations
|
(1,891
|
)
|
|
81,639
|
|
|
7,050
|
|
|
—
|
|
|
86,798
|
|
|||||
Other expense:
|
|
|
|
|
|
|
|
|
|
||||||||||
Floorplan interest expense
|
—
|
|
|
(13,989
|
)
|
|
(1,714
|
)
|
|
—
|
|
|
(15,703
|
)
|
|||||
Other interest income (expense), net
|
—
|
|
|
(17,175
|
)
|
|
(1,744
|
)
|
|
—
|
|
|
(18,919
|
)
|
|||||
Income (loss) before income taxes and equity in earnings of subsidiaries
|
(1,891
|
)
|
|
50,475
|
|
|
3,592
|
|
|
—
|
|
|
52,176
|
|
|||||
Benefit (provision) for income taxes
|
490
|
|
|
(12,902
|
)
|
|
(1,116
|
)
|
|
—
|
|
|
(13,528
|
)
|
|||||
Equity in earnings of subsidiaries
|
40,049
|
|
|
—
|
|
|
—
|
|
|
(40,049
|
)
|
|
—
|
|
|||||
Net income (loss)
|
$
|
38,648
|
|
|
$
|
37,573
|
|
|
$
|
2,476
|
|
|
$
|
(40,049
|
)
|
|
$
|
38,648
|
|
Comprehensive income (loss)
|
(977
|
)
|
|
(4,584
|
)
|
|
3,607
|
|
|
977
|
|
|
(977
|
)
|
|||||
Comprehensive income (loss) attributable to parent
|
$
|
37,671
|
|
|
$
|
32,989
|
|
|
$
|
6,083
|
|
|
$
|
(39,072
|
)
|
|
$
|
37,671
|
|
|
Group 1 Automotive, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Elimination
|
|
Total Company
|
||||||||||
Revenues
|
$
|
—
|
|
|
$
|
2,088,487
|
|
|
$
|
771,539
|
|
|
$
|
—
|
|
|
$
|
2,860,026
|
|
Cost of Sales
|
—
|
|
|
1,752,802
|
|
|
687,461
|
|
|
—
|
|
|
2,440,263
|
|
|||||
Gross Profit
|
—
|
|
|
335,685
|
|
|
84,078
|
|
|
—
|
|
|
419,763
|
|
|||||
Selling, General and Administrative Expenses
|
1,768
|
|
|
249,165
|
|
|
73,414
|
|
|
—
|
|
|
324,347
|
|
|||||
Depreciation and Amortization Expense
|
—
|
|
|
12,881
|
|
|
3,461
|
|
|
—
|
|
|
16,342
|
|
|||||
Income (loss) from operations
|
(1,768
|
)
|
|
73,639
|
|
|
7,203
|
|
|
—
|
|
|
79,074
|
|
|||||
Other expense:
|
|
|
|
|
|
|
|
|
|
||||||||||
Floorplan interest expense
|
—
|
|
|
(12,337
|
)
|
|
(1,750
|
)
|
|
—
|
|
|
(14,087
|
)
|
|||||
Other interest income (expense), net
|
—
|
|
|
(17,017
|
)
|
|
(1,803
|
)
|
|
—
|
|
|
(18,820
|
)
|
|||||
Income (loss) before income taxes and equity in earnings of subsidiaries
|
(1,768
|
)
|
|
44,285
|
|
|
3,650
|
|
|
—
|
|
|
46,167
|
|
|||||
Benefit (provision) for income taxes
|
424
|
|
|
(9,780
|
)
|
|
(997
|
)
|
|
—
|
|
|
(10,353
|
)
|
|||||
Equity in earnings of subsidiaries
|
37,158
|
|
|
—
|
|
|
—
|
|
|
(37,158
|
)
|
|
—
|
|
|||||
Net income (loss)
|
$
|
35,814
|
|
|
$
|
34,505
|
|
|
$
|
2,653
|
|
|
$
|
(37,158
|
)
|
|
$
|
35,814
|
|
Comprehensive income (loss)
|
—
|
|
|
9,405
|
|
|
7,871
|
|
|
—
|
|
|
17,276
|
|
|||||
Comprehensive income (loss) attributable to parent
|
$
|
35,814
|
|
|
$
|
43,910
|
|
|
$
|
10,524
|
|
|
$
|
(37,158
|
)
|
|
$
|
53,090
|
|
|
Group 1 Automotive, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Total Company
|
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
||||||||
Net cash provided by (used in) operating activities
|
$
|
32,601
|
|
|
$
|
71,795
|
|
|
$
|
23,543
|
|
|
$
|
127,939
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
||||||||
Proceeds from disposition of franchises, property and equipment
|
—
|
|
|
33,178
|
|
|
1,947
|
|
|
35,125
|
|
||||
Purchases of property and equipment, including real estate
|
—
|
|
|
(36,614
|
)
|
|
(5,097
|
)
|
|
(41,711
|
)
|
||||
Other
|
(200
|
)
|
|
—
|
|
|
—
|
|
|
(200
|
)
|
||||
Net cash provided by (used in) investing activities
|
(200
|
)
|
|
(3,436
|
)
|
|
(3,150
|
)
|
|
(6,786
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
||||||||
Borrowings on credit facility - floorplan line and other
|
—
|
|
|
1,624,256
|
|
|
7,288
|
|
|
1,631,544
|
|
||||
Repayments on credit facility - floorplan line and other
|
—
|
|
|
(1,679,425
|
)
|
|
(18,030
|
)
|
|
(1,697,455
|
)
|
||||
Borrowings on credit facility - acquisition line
|
107,777
|
|
|
—
|
|
|
—
|
|
|
107,777
|
|
||||
Repayments on credit facility - acquisition line
|
(111,466
|
)
|
|
—
|
|
|
—
|
|
|
(111,466
|
)
|
||||
Borrowings on other debt
|
—
|
|
|
7,288
|
|
|
13,041
|
|
|
20,329
|
|
||||
Principal payments on other debt
|
—
|
|
|
(18,206
|
)
|
|
(8,487
|
)
|
|
(26,693
|
)
|
||||
Principal payments on debt related to real estate
|
—
|
|
|
(17,702
|
)
|
|
(3,162
|
)
|
|
(20,864
|
)
|
||||
Employee stock purchase plan purchases, net of employee tax withholdings
|
(830
|
)
|
|
—
|
|
|
—
|
|
|
(830
|
)
|
||||
Dividends paid
|
(4,841
|
)
|
|
—
|
|
|
—
|
|
|
(4,841
|
)
|
||||
Borrowings (repayments) with subsidiaries
|
69,908
|
|
|
(68,496
|
)
|
|
(1,412
|
)
|
|
—
|
|
||||
Investment in subsidiaries
|
(92,949
|
)
|
|
92,790
|
|
|
159
|
|
|
—
|
|
||||
Net cash provided by (used in) financing activities
|
(32,401
|
)
|
|
(59,495
|
)
|
|
(10,603
|
)
|
|
(102,499
|
)
|
||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH
|
—
|
|
|
—
|
|
|
(519
|
)
|
|
(519
|
)
|
||||
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH
|
—
|
|
|
8,864
|
|
|
9,271
|
|
|
18,135
|
|
||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period
|
—
|
|
|
4,613
|
|
|
14,107
|
|
|
18,720
|
|
||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period
|
$
|
—
|
|
|
$
|
13,477
|
|
|
$
|
23,378
|
|
|
$
|
36,855
|
|
|
Group 1 Automotive, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Total Company
|
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
||||||||
Net cash provided by (used in) operating activities
|
$
|
35,814
|
|
|
$
|
114,862
|
|
|
$
|
(1,894
|
)
|
|
$
|
148,782
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
||||||||
Cash paid in acquisitions, net of cash received
|
—
|
|
|
(31,414
|
)
|
|
(40,085
|
)
|
|
(71,499
|
)
|
||||
Proceeds from disposition of franchises, property and equipment
|
—
|
|
|
918
|
|
|
2,022
|
|
|
2,940
|
|
||||
Purchases of property and equipment, including real estate
|
—
|
|
|
(34,101
|
)
|
|
(13,847
|
)
|
|
(47,948
|
)
|
||||
Other
|
—
|
|
|
140
|
|
|
—
|
|
|
140
|
|
||||
Net cash provided by (used in) investing activities
|
—
|
|
|
(64,457
|
)
|
|
(51,910
|
)
|
|
(116,367
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
||||||||
Borrowings on credit facility - floorplan line and other
|
—
|
|
|
1,612,866
|
|
|
43,326
|
|
|
1,656,192
|
|
||||
Repayments on credit facility - floorplan line and other
|
—
|
|
|
(1,675,917
|
)
|
|
(26,530
|
)
|
|
(1,702,447
|
)
|
||||
Borrowings on credit facility - acquisition line
|
66,945
|
|
|
—
|
|
|
—
|
|
|
66,945
|
|
||||
Repayments on credit facility - acquisition line
|
(66,444
|
)
|
|
—
|
|
|
—
|
|
|
(66,444
|
)
|
||||
Borrowings on other debt
|
—
|
|
|
43,326
|
|
|
22,288
|
|
|
65,614
|
|
||||
Principal payments on other debt
|
(24,742
|
)
|
|
(1,987
|
)
|
|
(13,349
|
)
|
|
(40,078
|
)
|
||||
Borrowings on debt related to real estate
|
—
|
|
|
34,817
|
|
|
12,018
|
|
|
46,835
|
|
||||
Principal payments on debt related to real estate
|
—
|
|
|
(31,000
|
)
|
|
(6,819
|
)
|
|
(37,819
|
)
|
||||
Employee stock purchase plan purchases, net of employee tax withholdings
|
(1,638
|
)
|
|
—
|
|
|
—
|
|
|
(1,638
|
)
|
||||
Repurchases of common stock, amounts based on settlement date
|
(9,199
|
)
|
|
—
|
|
|
—
|
|
|
(9,199
|
)
|
||||
Dividends paid
|
(5,495
|
)
|
|
—
|
|
|
—
|
|
|
(5,495
|
)
|
||||
Borrowings (repayments) with subsidiaries
|
22,730
|
|
|
(50,554
|
)
|
|
27,824
|
|
|
—
|
|
||||
Investment in subsidiaries
|
(17,971
|
)
|
|
16,822
|
|
|
1,149
|
|
|
—
|
|
||||
Net cash provided by (used in) financing activities
|
(35,814
|
)
|
|
(51,627
|
)
|
|
59,907
|
|
|
(27,534
|
)
|
||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH
|
—
|
|
|
—
|
|
|
47
|
|
|
47
|
|
||||
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH
|
—
|
|
|
(1,222
|
)
|
|
6,150
|
|
|
4,928
|
|
||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period
|
—
|
|
|
10,096
|
|
|
19,535
|
|
|
29,631
|
|
||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period
|
$
|
—
|
|
|
$
|
8,874
|
|
|
$
|
25,685
|
|
|
$
|
34,559
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Unit Sales
|
|
|
|
|
||||
Retail Sales
|
|
|
|
|
||||
New Vehicle
|
|
38,874
|
|
|
41,190
|
|
||
Used Vehicle
|
|
38,836
|
|
|
36,216
|
|
||
Total Retail Sales
|
|
77,710
|
|
|
77,406
|
|
||
Used Wholesale Sales
|
|
12,989
|
|
|
15,327
|
|
||
Total Vehicle Sales
|
|
90,699
|
|
|
92,733
|
|
||
Gross Margin
|
|
|
|
|
||||
New Vehicle Retail Sales
|
|
5.0
|
%
|
|
5.0
|
%
|
||
Total Used Vehicle Sales
|
|
5.3
|
%
|
|
5.1
|
%
|
||
Parts and Service Sales
|
|
53.8
|
%
|
|
53.5
|
%
|
||
Total Gross Margin
|
|
15.4
|
%
|
|
14.7
|
%
|
||
SG&A
(1)
as a % of Gross Profit
|
|
75.9
|
%
|
|
77.3
|
%
|
||
Adjusted SG&A
(1)
as a % of Gross Profit
(2)
|
|
76.1
|
%
|
|
77.3
|
%
|
||
Operating Margin
|
|
3.1%
|
|
|
2.8%
|
|
||
Pretax Margin
|
|
1.9%
|
|
|
1.6%
|
|
||
Adjusted Pretax Margin
(2)
|
|
1.8%
|
|
|
1.6%
|
|
||
Finance and Insurance Revenues per Retail Unit Sold
|
|
$
|
1,459
|
|
|
$
|
1,451
|
|
(1)
|
Selling, general and administrative expenses.
|
(2)
|
See “Non-GAAP Financial Measures” for more details.
|
|
|
Three Months Ended March 31,
|
||||||||||||
|
|
2019
|
|
% Increase/(Decrease)
|
|
Constant Currency
(1)
% Increase/(Decrease)
|
|
2018
|
||||||
Revenues
|
|
|
|
|
|
|
|
|
||||||
New Vehicle Retail
|
|
$
|
1,342,057
|
|
|
(7.8
|
)%
|
|
(5.9
|
)%
|
|
$
|
1,455,789
|
|
Used Vehicle Retail
|
|
774,943
|
|
|
2.5
|
%
|
|
4.5
|
%
|
|
756,351
|
|
||
Used Vehicle Wholesale
|
|
87,145
|
|
|
(13.7
|
)%
|
|
(10.2
|
)%
|
|
100,949
|
|
||
Parts and Service
|
|
355,995
|
|
|
6.1
|
%
|
|
7.7
|
%
|
|
335,372
|
|
||
Finance, Insurance and Other, net
|
|
109,084
|
|
|
(0.3
|
)%
|
|
0.7
|
%
|
|
109,445
|
|
||
Total Revenues
|
|
2,669,224
|
|
|
(3.2
|
)%
|
|
(1.3
|
)%
|
|
2,757,906
|
|
||
Cost of Sales
|
|
|
|
|
|
|
|
|
||||||
New Vehicle Retail
|
|
$
|
1,273,745
|
|
|
(7.9
|
)%
|
|
(6.0
|
)%
|
|
$
|
1,383,031
|
|
Used Vehicle Retail
|
|
729,433
|
|
|
2.2
|
%
|
|
4.2
|
%
|
|
713,990
|
|
||
Used Vehicle Wholesale
|
|
86,437
|
|
|
(12.9
|
)%
|
|
(9.4
|
)%
|
|
99,271
|
|
||
Parts and Service
|
|
165,222
|
|
|
6.2
|
%
|
|
7.9
|
%
|
|
155,523
|
|
||
Total Cost of Sales
|
|
2,254,837
|
|
|
(4.1
|
)%
|
|
(2.1
|
)%
|
|
2,351,815
|
|
||
Gross Profit
|
|
$
|
414,387
|
|
|
2.0
|
%
|
|
3.5
|
%
|
|
$
|
406,091
|
|
SG&A
|
|
$
|
315,637
|
|
|
1.2
|
%
|
|
2.9
|
%
|
|
$
|
311,967
|
|
Adjusted SG&A
(1)
|
|
312,911
|
|
|
0.3
|
%
|
|
2.0
|
%
|
|
311,967
|
|
||
Depreciation and Amortization Expense
|
|
16,177
|
|
|
3.5
|
%
|
|
5.2
|
%
|
|
15,625
|
|
||
Floorplan Interest Expense
|
|
15,096
|
|
|
11.4
|
%
|
|
12.3
|
%
|
|
13,547
|
|
||
Gross Margin
|
|
|
|
|
|
|
|
|
||||||
New Vehicle Retail
|
|
5.1
|
%
|
|
|
|
|
|
5.0
|
%
|
||||
Total Used Vehicle
|
|
5.4
|
%
|
|
|
|
|
|
5.1
|
%
|
||||
Parts and Service
|
|
53.6
|
%
|
|
|
|
|
|
53.6
|
%
|
||||
Total Gross Margin
|
|
15.5
|
%
|
|
|
|
|
|
14.7
|
%
|
||||
SG&A as a % of Gross Profit
|
|
76.2
|
%
|
|
|
|
|
|
76.8
|
%
|
||||
Adjusted SG&A as a % of Gross Profit
(1)
|
|
75.5%
|
|
|
|
|
|
|
76.8%
|
|
||||
Operating Margin
|
|
3.1%
|
|
|
|
|
|
|
2.8%
|
|
||||
Adjusted Operating Margin
(1)
|
|
3.2%
|
|
|
|
|
|
|
2.8%
|
|
||||
Finance and Insurance Revenues per Retail Unit Sold, net
|
|
$
|
1,488
|
|
|
1.7
|
%
|
|
2.8
|
%
|
|
$
|
1,463
|
|
(1)
|
See “Non-GAAP Financial Measures” for more details.
|
|
|
Three Months Ended March 31,
|
||||||||||||
|
|
2019
|
|
|
% Increase/(Decrease)
|
|
Constant Currency
(1)
% Increase/(Decrease)
|
|
2018
|
|
||||
Retail Unit Sales
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
25,569
|
|
|
(8.7
|
)%
|
|
|
|
28,007
|
|
|||
U.K.
|
|
9,215
|
|
|
(4.6
|
)%
|
|
|
|
9,657
|
|
|||
Brazil
|
|
1,850
|
|
|
(10.5
|
)%
|
|
|
|
2,067
|
|
|||
Total Same Stores
|
|
36,634
|
|
|
(7.8
|
)%
|
|
|
|
39,731
|
|
|||
Transactions
|
|
2,240
|
|
|
|
|
|
|
1,459
|
|
||||
Total
|
|
38,874
|
|
|
(5.6
|
)%
|
|
|
|
41,190
|
|
|||
Retail Sales Revenues
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|||||
U.S.
|
|
$
|
1,004,977
|
|
|
(5.3
|
)%
|
|
N/A
|
|
|
$
|
1,061,294
|
|
U.K.
|
|
280,164
|
|
|
(13.9
|
)%
|
|
(8.2
|
)%
|
|
325,262
|
|
||
Brazil
|
|
56,916
|
|
|
(17.8
|
)%
|
|
(4.6
|
)%
|
|
69,233
|
|
||
Total Same Stores
|
|
1,342,057
|
|
|
(7.8
|
)%
|
|
(5.9
|
)%
|
|
1,455,789
|
|
||
Transactions
|
|
72,428
|
|
|
|
|
|
|
57,801
|
|
||||
Total
|
|
$
|
1,414,485
|
|
|
(6.5
|
)%
|
|
(4.5
|
)%
|
|
$
|
1,513,590
|
|
Gross Profit
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
49,404
|
|
|
(4.0
|
)%
|
|
N/A
|
|
|
$
|
51,471
|
|
U.K.
|
|
15,493
|
|
|
(11.5
|
)%
|
|
(5.9
|
)%
|
|
17,506
|
|
||
Brazil
|
|
3,415
|
|
|
(9.7
|
)%
|
|
4.8
|
%
|
|
3,781
|
|
||
Total Same Stores
|
|
68,312
|
|
|
(6.1
|
)%
|
|
(4.0
|
)%
|
|
72,758
|
|
||
Transactions
|
|
3,079
|
|
|
|
|
|
|
2,669
|
|
||||
Total
|
|
$
|
71,391
|
|
|
(5.4
|
)%
|
|
(3.1
|
)%
|
|
$
|
75,427
|
|
Gross Profit per Retail Unit Sold
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
|
|
||||
U.S.
|
|
$
|
1,932
|
|
|
5.1
|
%
|
|
N/A
|
|
|
$
|
1,838
|
|
U.K.
|
|
1,681
|
|
|
(7.3
|
)%
|
|
(1.4
|
)%
|
|
1,813
|
|
||
Brazil
|
|
1,846
|
|
|
0.9
|
%
|
|
17.1
|
%
|
|
1,829
|
|
||
Total Same Stores
|
|
1,865
|
|
|
1.9
|
%
|
|
4.1
|
%
|
|
1,831
|
|
||
Transactions
|
|
1,375
|
|
|
|
|
|
|
1,829
|
|
||||
Total
|
|
1,836
|
|
|
0.3
|
%
|
|
2.6
|
%
|
|
1,831
|
|
||
Gross Margin
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
4.9
|
%
|
|
|
|
|
|
4.8
|
%
|
||||
U.K.
|
|
5.5
|
%
|
|
|
|
|
|
5.4
|
%
|
||||
Brazil
|
|
6.0
|
%
|
|
|
|
|
|
5.5
|
%
|
||||
Total Same Stores
|
|
5.1
|
%
|
|
|
|
|
|
|
5.0
|
%
|
|||
Transactions
|
|
4.3
|
%
|
|
|
|
|
|
4.6
|
%
|
||||
Total
|
|
5.0
|
%
|
|
|
|
|
|
5.0
|
%
|
|
|
Three Months Ended March 31,
|
||||
|
|
2019
|
|
% Increase/(Decrease)
|
|
2018
|
Toyota/Lexus
|
|
8,677
|
|
(12.2)%
|
|
9,883
|
Volkswagen/Audi/Porsche/SEAT/SKODA
|
|
5,803
|
|
(0.4)%
|
|
5,824
|
BMW/MINI
|
|
4,840
|
|
(4.6)%
|
|
5,072
|
Ford/Lincoln
|
|
4,112
|
|
(8.4)%
|
|
4,489
|
Honda/Acura
|
|
3,580
|
|
(8.9)%
|
|
3,931
|
Chevrolet/GMC/Buick/Cadillac
|
|
2,445
|
|
1.8%
|
|
2,402
|
Nissan
|
|
2,314
|
|
(16.3)%
|
|
2,766
|
Hyundai/Kia
|
|
1,315
|
|
(13.8)%
|
|
1,526
|
Chrysler/Dodge/Jeep/RAM
|
|
1,182
|
|
(23.9)%
|
|
1,553
|
Mercedes-Benz/Smart/Sprinter
|
|
1,080
|
|
(9.9)%
|
|
1,199
|
Jaguar/Land Rover
|
|
973
|
|
31.0%
|
|
743
|
Other
|
|
313
|
|
(8.7)%
|
|
343
|
Total
|
|
36,634
|
|
(7.8)%
|
|
39,731
|
|
|
Three Months Ended March 31,
|
||||||||||||
|
|
2019
|
|
% Increase/(Decrease)
|
|
Constant Currency
(1)
% Increase/(Decrease)
|
|
2018
|
||||||
Retail Unit Sales
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
28,389
|
|
|
6.6
|
%
|
|
|
|
26,635
|
|
|||
U.K.
|
|
7,291
|
|
|
(1.1
|
)%
|
|
|
|
7,369
|
|
|||
Brazil
|
|
991
|
|
|
(7.5
|
)%
|
|
|
|
1,071
|
|
|||
Total Same Stores
|
|
36,671
|
|
|
4.6
|
%
|
|
|
|
35,075
|
|
|||
Transactions
|
|
2,165
|
|
|
|
|
|
|
1,141
|
|
||||
Total
|
|
38,836
|
|
|
7.2
|
%
|
|
|
|
36,216
|
|
|||
Retail Sales Revenues
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
577,645
|
|
|
5.2
|
%
|
|
N/A
|
|
|
$
|
549,242
|
|
U.K.
|
|
177,855
|
|
|
(2.8
|
)%
|
|
3.9
|
%
|
|
182,918
|
|
||
Brazil
|
|
19,443
|
|
|
(19.6
|
)%
|
|
(6.8
|
)%
|
|
24,191
|
|
||
Total Same Stores
|
|
774,943
|
|
|
2.5
|
%
|
|
4.5
|
%
|
|
756,351
|
|
||
Transactions
|
|
44,260
|
|
|
|
|
|
|
24,219
|
|
||||
Total
|
|
$
|
819,203
|
|
|
4.9
|
%
|
|
7.2
|
%
|
|
$
|
780,570
|
|
Gross Profit
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
37,335
|
|
|
14.6
|
%
|
|
N/A
|
|
|
$
|
32,589
|
|
U.K.
|
|
7,073
|
|
|
(15.0
|
)%
|
|
(9.2
|
)%
|
|
8,320
|
|
||
Brazil
|
|
1,102
|
|
|
(24.1
|
)%
|
|
(11.8
|
)%
|
|
1,452
|
|
||
Total Same Stores
|
|
45,510
|
|
|
7.4
|
%
|
|
9.0
|
%
|
|
42,361
|
|
||
Transactions
|
|
2,299
|
|
|
|
|
|
|
1,134
|
|
||||
Total
|
|
$
|
47,809
|
|
|
9.9
|
%
|
|
11.7
|
%
|
|
$
|
43,495
|
|
Gross Profit per Unit Sold
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
1,315
|
|
|
7.4
|
%
|
|
N/A
|
|
|
$
|
1,224
|
|
U.K.
|
|
970
|
|
|
(14.1
|
)%
|
|
(8.2
|
)%
|
|
1,129
|
|
||
Brazil
|
|
1,112
|
|
|
(18.0
|
)%
|
|
(4.7
|
)%
|
|
1,356
|
|
||
Total Same Stores
|
|
1,241
|
|
|
2.7
|
%
|
|
4.3
|
%
|
|
1,208
|
|
||
Transactions
|
|
1,062
|
|
|
|
|
|
|
994
|
|
||||
Total
|
|
$
|
1,231
|
|
|
2.5
|
%
|
|
4.1
|
%
|
|
$
|
1,201
|
|
Gross Margin
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
6.5
|
%
|
|
|
|
|
|
5.9
|
%
|
||||
U.K.
|
|
4.0
|
%
|
|
|
|
|
|
4.5
|
%
|
||||
Brazil
|
|
5.7
|
%
|
|
|
|
|
|
6.0
|
%
|
||||
Total Same Stores
|
|
5.9
|
%
|
|
|
|
|
|
|
5.6
|
%
|
|||
Transactions
|
|
5.2
|
%
|
|
|
|
|
|
4.7
|
%
|
||||
Total
|
|
5.8
|
%
|
|
|
|
|
|
5.6
|
%
|
(1)
|
See “Non-GAAP Financial Measures” for more details.
|
|
|
Three Months Ended March 31,
|
||||||||||||
|
|
2019
|
|
% Increase/(Decrease)
|
|
Constant Currency
(1)
% Increase/(Decrease)
|
|
2018
|
||||||
Wholesale Unit Sales
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
6,921
|
|
|
(24.5
|
)%
|
|
|
|
9,171
|
|
|||
U.K.
|
|
4,870
|
|
|
(9.7
|
)%
|
|
|
|
5,391
|
|
|||
Brazil
|
|
411
|
|
|
15.1
|
%
|
|
|
|
357
|
|
|||
Total Same Stores
|
|
12,202
|
|
|
(18.2
|
)%
|
|
|
|
14,919
|
|
|||
Transactions
|
|
787
|
|
|
|
|
|
|
408
|
|
||||
Total
|
|
12,989
|
|
|
(15.3
|
)%
|
|
|
|
15,327
|
|
|||
Wholesale Sales Revenues
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
41,874
|
|
|
(20.3
|
)%
|
|
N/A
|
|
|
$
|
52,539
|
|
U.K.
|
|
41,221
|
|
|
(7.5
|
)%
|
|
(1.2
|
)%
|
|
44,568
|
|
||
Brazil
|
|
4,050
|
|
|
5.4
|
%
|
|
22.9
|
%
|
|
3,842
|
|
||
Total Same Stores
|
|
87,145
|
|
|
(13.7
|
)%
|
|
(10.2
|
)%
|
|
100,949
|
|
||
Transactions
|
|
4,993
|
|
|
|
|
|
|
3,080
|
|
||||
Total
|
|
$
|
92,138
|
|
|
(11.4
|
)%
|
|
(7.8
|
)%
|
|
$
|
104,029
|
|
Gross Profit
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
1,199
|
|
|
(16.1
|
)%
|
|
N/A
|
|
|
$
|
1,429
|
|
U.K.
|
|
(788
|
)
|
|
(904.1
|
)%
|
|
(1,018.0
|
)%
|
|
98
|
|
||
Brazil
|
|
297
|
|
|
96.7
|
%
|
|
127.9
|
%
|
|
151
|
|
||
Total Same Stores
|
|
708
|
|
|
(57.8
|
)%
|
|
(62.0
|
)%
|
|
1,678
|
|
||
Transactions
|
|
(257
|
)
|
|
|
|
|
|
(23
|
)
|
||||
Total
|
|
$
|
451
|
|
|
(72.7
|
)%
|
|
(80.6
|
)%
|
|
$
|
1,655
|
|
Gross Profit per Wholesale Unit Sold
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
173
|
|
|
10.9
|
%
|
|
N/A
|
|
|
$
|
156
|
|
U.K.
|
|
(162
|
)
|
|
(1,000.0
|
)%
|
|
(1,116.2
|
)%
|
|
18
|
|
||
Brazil
|
|
723
|
|
|
70.9
|
%
|
|
97.9
|
%
|
|
423
|
|
||
Total Same Stores
|
|
58
|
|
|
(48.2
|
)%
|
|
(53.5
|
)%
|
|
112
|
|
||
Transactions
|
|
(327
|
)
|
|
|
|
|
|
(56
|
)
|
||||
Total
|
|
$
|
35
|
|
|
(67.6
|
)%
|
|
(77.1
|
)%
|
|
$
|
108
|
|
Gross Margin
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
2.9
|
%
|
|
|
|
|
|
2.7
|
%
|
||||
U.K.
|
|
(1.9
|
)%
|
|
|
|
|
|
0.2
|
%
|
||||
Brazil
|
|
7.3
|
%
|
|
|
|
|
|
3.9
|
%
|
||||
Total Same Stores
|
|
0.8
|
%
|
|
|
|
|
|
|
1.7
|
%
|
|||
Transactions
|
|
(5.1
|
)%
|
|
|
|
|
|
(0.7
|
)%
|
||||
Total
|
|
0.5
|
%
|
|
|
|
|
|
1.6
|
%
|
(1)
|
See “Non-GAAP Financial Measures” for more details.
|
|
|
Three Months Ended March 31,
|
||||||||||||
|
|
2019
|
|
% Increase/(Decrease)
|
|
Constant Currency
(1)
% Increase/(Decrease)
|
|
2018
|
||||||
Used Vehicle Unit Sales
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
35,310
|
|
|
(1.4
|
)%
|
|
|
|
35,806
|
|
|||
U.K.
|
|
12,161
|
|
|
(4.7
|
)%
|
|
|
|
12,760
|
|
|||
Brazil
|
|
1,402
|
|
|
(1.8
|
)%
|
|
|
|
1,428
|
|
|||
Total Same Stores
|
|
48,873
|
|
|
(2.2
|
)%
|
|
|
|
49,994
|
|
|||
Transactions
|
|
2,952
|
|
|
|
|
|
|
1,549
|
|
||||
Total
|
|
51,825
|
|
|
0.5
|
%
|
|
|
|
51,543
|
|
|||
Sales Revenues
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
619,519
|
|
|
2.9
|
%
|
|
N/A
|
|
|
$
|
601,781
|
|
U.K.
|
|
219,076
|
|
|
(3.7
|
)%
|
|
2.9
|
%
|
|
227,486
|
|
||
Brazil
|
|
23,493
|
|
|
(16.2
|
)%
|
|
(2.8
|
)%
|
|
28,033
|
|
||
Total Same Stores
|
|
862,088
|
|
|
0.6
|
%
|
|
2.7
|
%
|
|
857,300
|
|
||
Transactions
|
|
49,253
|
|
|
|
|
|
|
27,299
|
|
||||
Total
|
|
$
|
911,341
|
|
|
3.0
|
%
|
|
5.4
|
%
|
|
$
|
884,599
|
|
Gross Profit
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
38,534
|
|
|
13.3
|
%
|
|
N/A
|
|
|
$
|
34,018
|
|
U.K.
|
|
6,285
|
|
|
(25.3
|
)%
|
|
(21.0
|
)%
|
|
8,418
|
|
||
Brazil
|
|
1,399
|
|
|
(12.7
|
)%
|
|
1.3
|
%
|
|
1,603
|
|
||
Total Same Stores
|
|
46,218
|
|
|
4.9
|
%
|
|
6.3
|
%
|
|
44,039
|
|
||
Transactions
|
|
2,042
|
|
|
|
|
|
|
1,111
|
|
||||
Total
|
|
$
|
48,260
|
|
|
6.9
|
%
|
|
8.3
|
%
|
|
$
|
45,150
|
|
Gross Profit per Unit Sold
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
1,091
|
|
|
14.8
|
%
|
|
N/A
|
|
|
$
|
950
|
|
U.K.
|
|
517
|
|
|
(21.7
|
)%
|
|
(17.1
|
)%
|
|
660
|
|
||
Brazil
|
|
998
|
|
|
(11.1
|
)%
|
|
3.2
|
%
|
|
1,123
|
|
||
Total Same Stores
|
|
946
|
|
|
7.4
|
%
|
|
8.7
|
%
|
|
881
|
|
||
Transactions
|
|
692
|
|
|
|
|
|
|
717
|
|
||||
Total
|
|
$
|
931
|
|
|
6.3
|
%
|
|
7.7
|
%
|
|
$
|
876
|
|
Gross Margin
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
6.2
|
%
|
|
|
|
|
|
5.7
|
%
|
||||
U.K.
|
|
2.9
|
%
|
|
|
|
|
|
3.7
|
%
|
||||
Brazil
|
|
6.0
|
%
|
|
|
|
|
|
5.7
|
%
|
||||
Total Same Stores
|
|
5.4
|
%
|
|
|
|
|
|
5.1
|
%
|
||||
Transactions
|
|
4.1
|
%
|
|
|
|
|
|
4.1
|
%
|
||||
Total
|
|
5.3
|
%
|
|
|
|
|
|
5.1
|
%
|
|
|
Three Months Ended March 31,
|
||||||||||||
|
|
2019
|
|
% Increase/(Decrease)
|
|
Constant Currency
(1)
% Increase/(Decrease)
|
|
2018
|
||||||
Parts and Services Revenue
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
293,980
|
|
|
6.8
|
%
|
|
N/A
|
|
|
$
|
275,288
|
|
U.K.
|
|
50,745
|
|
|
5.2
|
%
|
|
12.4
|
%
|
|
48,224
|
|
||
Brazil
|
|
11,270
|
|
|
(5.0
|
)%
|
|
10.2
|
%
|
|
11,860
|
|
||
Total Same Stores
|
|
355,995
|
|
|
6.1
|
%
|
|
7.7
|
%
|
|
335,372
|
|
||
Transactions
|
|
13,179
|
|
|
|
|
|
|
14,143
|
|
||||
Total
|
|
$
|
369,174
|
|
|
5.6
|
%
|
|
7.3
|
%
|
|
$
|
349,515
|
|
Gross Profit
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
158,025
|
|
|
7.5
|
%
|
|
N/A
|
|
|
$
|
146,975
|
|
U.K.
|
|
27,842
|
|
|
1.2
|
%
|
|
8.1
|
%
|
|
27,501
|
|
||
Brazil
|
|
4,906
|
|
|
(8.7
|
)%
|
|
5.9
|
%
|
|
5,373
|
|
||
Total Same Stores
|
|
190,773
|
|
|
6.1
|
%
|
|
7.6
|
%
|
|
179,849
|
|
||
Transactions
|
|
7,703
|
|
|
|
|
|
|
7,015
|
|
||||
Total
|
|
$
|
198,476
|
|
|
6.2
|
%
|
|
7.9
|
%
|
|
$
|
186,864
|
|
Gross Margin
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
53.8
|
%
|
|
|
|
|
|
53.4
|
%
|
||||
U.K.
|
|
54.9
|
%
|
|
|
|
|
|
57.0
|
%
|
||||
Brazil
|
|
43.5
|
%
|
|
|
|
|
|
45.3
|
%
|
||||
Total Same Stores
|
|
53.6
|
%
|
|
|
|
|
|
53.6
|
%
|
||||
Transactions
|
|
58.4
|
%
|
|
|
|
|
|
49.6
|
%
|
||||
Total
|
|
53.8
|
%
|
|
|
|
|
|
53.5
|
%
|
|
|
Three Months Ended March 31,
|
||||||||||||
|
|
2019
|
|
% Increase/(Decrease)
|
|
Constant Currency
(1)
% Increase/(Decrease)
|
|
2018
|
||||||
Retail New and Used Unit Sales
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
53,958
|
|
|
(1.3
|
)%
|
|
|
|
54,642
|
|
|||
U.K.
|
|
16,506
|
|
|
(3.1
|
)%
|
|
|
|
17,026
|
|
|||
Brazil
|
|
2,841
|
|
|
(9.5
|
)%
|
|
|
|
3,138
|
|
|||
Total Same Stores
|
|
73,305
|
|
|
(2.0
|
)%
|
|
|
|
74,806
|
|
|||
Transactions
|
|
4,405
|
|
|
|
|
|
|
2,600
|
|
||||
Total
|
|
77,710
|
|
|
0.4
|
%
|
|
|
|
77,406
|
|
|||
Retail Finance Fees
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
28,287
|
|
|
5.3
|
%
|
|
N/A
|
|
|
$
|
26,875
|
|
U.K.
|
|
7,995
|
|
|
0.4
|
%
|
|
7.1
|
%
|
|
7,962
|
|
||
Brazil
|
|
613
|
|
|
19.0
|
%
|
|
37.9
|
%
|
|
515
|
|
||
Total Same Stores
|
|
36,895
|
|
|
4.4
|
%
|
|
6.1
|
%
|
|
35,352
|
|
||
Transactions
|
|
1,590
|
|
|
|
|
|
|
1,199
|
|
||||
Total
|
|
$
|
38,485
|
|
|
5.3
|
%
|
|
7.2
|
%
|
|
$
|
36,551
|
|
Vehicle Service Contract Fees
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
37,840
|
|
|
(0.7
|
)%
|
|
N/A
|
|
|
$
|
38,123
|
|
U.K.
|
|
331
|
|
|
49.8
|
%
|
|
58.8
|
%
|
|
221
|
|
||
Brazil
|
|
—
|
|
|
—
|
%
|
|
—
|
%
|
|
—
|
|
||
Total Same Stores
|
|
38,171
|
|
|
(0.5
|
)%
|
|
(0.4
|
)%
|
|
38,344
|
|
||
Transactions
|
|
1,033
|
|
|
|
|
|
|
549
|
|
||||
Total
|
|
$
|
39,204
|
|
|
0.8
|
%
|
|
0.8
|
%
|
|
$
|
38,893
|
|
Insurance and Other
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
27,584
|
|
|
(5.2
|
)%
|
|
N/A
|
|
|
$
|
29,108
|
|
U.K.
|
|
5,332
|
|
|
0.9
|
%
|
|
7.6
|
%
|
|
5,284
|
|
||
Brazil
|
|
1,102
|
|
|
(18.8
|
)%
|
|
(6.1
|
)%
|
|
1,357
|
|
||
Total Same Stores
|
|
34,018
|
|
|
(4.8
|
)%
|
|
(3.4
|
)%
|
|
35,749
|
|
||
Transactions
|
|
1,669
|
|
|
|
|
|
|
1,129
|
|
||||
Total
|
|
$
|
35,687
|
|
|
(3.2
|
)%
|
|
(1.6
|
)%
|
|
$
|
36,878
|
|
Total Finance and Insurance Revenues
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
93,711
|
|
|
(0.4
|
)%
|
|
N/A
|
|
|
$
|
94,106
|
|
U.K.
|
|
13,658
|
|
|
1.4
|
%
|
|
8.1
|
%
|
|
13,467
|
|
||
Brazil
|
|
1,715
|
|
|
(8.4
|
)%
|
|
6.0
|
%
|
|
1,872
|
|
||
Total Same Stores
|
|
109,084
|
|
|
(0.3
|
)%
|
|
0.7
|
%
|
|
109,445
|
|
||
Transactions
|
|
4,292
|
|
|
|
|
|
|
2,877
|
|
||||
Total
|
|
$
|
113,376
|
|
|
0.9
|
%
|
|
2.1
|
%
|
|
$
|
112,322
|
|
Finance and Insurance Revenues per Retail Unit Sold
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
1,737
|
|
|
0.9
|
%
|
|
N/A
|
|
|
$
|
1,722
|
|
U.K.
|
|
827
|
|
|
4.6
|
%
|
|
11.6
|
%
|
|
791
|
|
||
Brazil
|
|
604
|
|
|
1.2
|
%
|
|
17.1
|
%
|
|
597
|
|
||
Total Same Stores
|
|
1,488
|
|
|
1.7
|
%
|
|
2.8
|
%
|
|
1,463
|
|
||
Transactions
|
|
974
|
|
|
|
|
|
|
|
1,107
|
|
|||
Total
|
|
$
|
1,459
|
|
|
0.6
|
%
|
|
1.7
|
%
|
|
$
|
1,451
|
|
(1)
|
See “Non-GAAP Financial Measures” for more details.
|
|
|
Three Months Ended March 31,
|
||||||||||||
|
|
2019
|
|
|
% Increase/(Decrease)
|
|
|
Constant Currency
(1)
% Increase/(Decrease)
|
|
|
2018
|
|||
Personnel
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
164,570
|
|
|
3.5
|
%
|
|
N/A
|
|
|
$
|
159,059
|
|
U.K.
|
|
29,956
|
|
|
(8.0
|
)%
|
|
(1.7
|
)%
|
|
32,558
|
|
||
Brazil
|
|
6,238
|
|
|
(2.8
|
)%
|
|
12.8
|
%
|
|
6,416
|
|
||
Total Same Stores
|
|
200,764
|
|
|
1.4
|
%
|
|
2.9
|
%
|
|
198,033
|
|
||
Transactions
|
|
8,419
|
|
|
|
|
|
|
6,927
|
|
||||
Total
|
|
$
|
209,183
|
|
|
2.1
|
%
|
|
3.7
|
%
|
|
$
|
204,960
|
|
Advertising
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
15,533
|
|
|
2.0
|
%
|
|
N/A
|
|
|
$
|
15,227
|
|
U.K.
|
|
1,833
|
|
|
(19.0
|
)%
|
|
(13.4
|
)%
|
|
2,263
|
|
||
Brazil
|
|
212
|
|
|
(36.1
|
)%
|
|
(25.6
|
)%
|
|
332
|
|
||
Total Same Stores
|
|
17,578
|
|
|
(1.4
|
)%
|
|
(0.5
|
)%
|
|
17,822
|
|
||
Transactions
|
|
766
|
|
|
|
|
|
|
484
|
|
||||
Total
|
|
$
|
18,344
|
|
|
0.2
|
%
|
|
1.2
|
%
|
|
$
|
18,306
|
|
Rent and Facility Costs
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
19,674
|
|
|
7.3
|
%
|
|
N/A
|
|
|
$
|
18,343
|
|
U.K.
|
|
5,618
|
|
|
(9.2
|
)%
|
|
(2.8
|
)%
|
|
6,185
|
|
||
Brazil
|
|
2,027
|
|
|
(12.6
|
)%
|
|
1.4
|
%
|
|
2,320
|
|
||
Total Same Stores
|
|
27,319
|
|
|
1.8
|
%
|
|
4.4
|
%
|
|
26,848
|
|
||
Transactions
|
|
2,083
|
|
|
|
|
|
|
1,554
|
|
||||
Total
|
|
$
|
29,402
|
|
|
3.5
|
%
|
|
6.4
|
%
|
|
$
|
28,402
|
|
Other SG&A
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
53,510
|
|
|
2.3
|
%
|
|
N/A
|
|
|
$
|
52,323
|
|
U.K.
|
|
13,881
|
|
|
(2.8
|
)%
|
|
3.8
|
%
|
|
14,278
|
|
||
Brazil
|
|
2,585
|
|
|
(2.9
|
)%
|
|
12.5
|
%
|
|
2,663
|
|
||
Total Same Stores
|
|
69,976
|
|
|
1.0
|
%
|
|
3.0
|
%
|
|
69,264
|
|
||
Transactions
|
|
803
|
|
|
|
|
|
|
3,415
|
|
||||
Total
|
|
$
|
70,779
|
|
|
(2.6
|
)%
|
|
(0.4
|
)%
|
|
$
|
72,679
|
|
Total SG&A
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
253,287
|
|
|
3.4
|
%
|
|
N/A
|
|
|
$
|
244,952
|
|
U.K.
|
|
51,288
|
|
|
(7.2
|
)%
|
|
(0.9
|
)%
|
|
55,284
|
|
||
Brazil
|
|
11,062
|
|
|
(5.7
|
)%
|
|
9.4
|
%
|
|
11,731
|
|
||
Total Same Stores
|
|
315,637
|
|
|
1.2
|
%
|
|
2.9
|
%
|
|
311,967
|
|
||
Transactions
|
|
12,071
|
|
|
|
|
|
|
12,380
|
|
||||
Total
|
|
$
|
327,708
|
|
|
1.0
|
%
|
|
2.9
|
%
|
|
$
|
324,347
|
|
Total Gross Profit
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
339,674
|
|
|
4.0
|
%
|
|
N/A
|
|
|
$
|
326,570
|
|
U.K.
|
|
63,278
|
|
|
(5.4
|
)%
|
|
0.9
|
%
|
|
66,892
|
|
||
Brazil
|
|
11,435
|
|
|
(9.5
|
)%
|
|
5.0
|
%
|
|
12,629
|
|
||
Total Same Stores
|
|
414,387
|
|
|
2.0
|
%
|
|
3.5
|
%
|
|
406,091
|
|
||
Transactions
|
|
17,116
|
|
|
|
|
|
|
13,672
|
|
||||
Total
|
|
$
|
431,503
|
|
|
2.8
|
%
|
|
4.4
|
%
|
|
$
|
419,763
|
|
SG&A as a % of Gross Profit
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
74.6
|
%
|
|
|
|
|
|
75.0%
|
|||||
U.K.
|
|
81.1
|
%
|
|
|
|
|
|
82.6%
|
|||||
Brazil
|
|
96.7
|
%
|
|
|
|
|
|
92.9%
|
|||||
Total Same Stores
|
|
76.2
|
%
|
|
|
|
|
|
76.8%
|
|||||
Transactions
|
|
70.5
|
%
|
|
|
|
|
|
90.6%
|
|||||
Total
|
|
75.9
|
%
|
|
|
|
|
|
77.3%
|
|||||
Adjusted Total SG&A
(1)
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
250,561
|
|
|
2.3
|
%
|
|
N/A
|
|
|
$
|
244,952
|
|
U.K.
|
|
51,288
|
|
|
(7.2
|
)%
|
|
(0.9
|
)%
|
|
55,284
|
|
||
Brazil
|
|
11,062
|
|
|
(5.7
|
)%
|
|
9.4
|
%
|
|
11,731
|
|
||
Total Same Stores
|
|
312,911
|
|
|
0.3
|
%
|
|
2.0
|
%
|
|
311,967
|
|
||
Transactions
|
|
15,639
|
|
|
|
|
|
|
12,380
|
|
||||
Total
|
|
$
|
328,550
|
|
|
1.3
|
%
|
|
3.1
|
%
|
|
$
|
324,347
|
|
Adjusted SG&A as a % of Gross Profit
(1)
|
|
|
|
|
|
|
|
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
73.8
|
%
|
|
|
|
|
|
75.0%
|
|||||
U.K.
|
|
81.1
|
%
|
|
|
|
|
|
82.6%
|
|||||
Brazil
|
|
96.7
|
%
|
|
|
|
|
|
92.9%
|
|||||
Total Same Stores
|
|
75.5
|
%
|
|
|
|
|
|
76.8%
|
|||||
Transactions
|
|
91.4
|
%
|
|
|
|
|
|
90.6%
|
|||||
Total
|
|
76.1
|
%
|
|
|
|
|
|
77.3%
|
|||||
|
|
|
|
|
|
|
|
|
||||||
Employees
|
|
14,800
|
|
|
|
|
|
|
14,400
|
|
|
Three Months Ended March 31,
|
||||||||||||
|
|
2019
|
|
% Increase/(Decrease)
|
|
Constant Currency
(1)
% Increase/(Decrease)
|
|
2018
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
12,949
|
|
|
4.5
|
%
|
|
N/A
|
|
|
$
|
12,388
|
|
U.K.
|
|
2,838
|
|
|
(0.4
|
)%
|
|
6.5
|
%
|
|
2,848
|
|
||
Brazil
|
|
390
|
|
|
0.3
|
%
|
|
15.7
|
%
|
|
389
|
|
||
Total Same Stores
|
|
16,177
|
|
|
3.5
|
%
|
|
5.2
|
%
|
|
15,625
|
|
||
Transactions
|
|
820
|
|
|
|
|
|
|
717
|
|
||||
Total
|
|
$
|
16,997
|
|
|
4.0
|
%
|
|
5.8
|
%
|
|
$
|
16,342
|
|
|
|
Three Months Ended March 31,
|
||||||||||||
|
|
2019
|
|
% Increase/(Decrease)
|
|
Constant Currency
(1)
% Increase/(Decrease)
|
|
2018
|
||||||
Same Stores
|
|
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
13,619
|
|
|
14.4
|
%
|
|
N/A
|
|
|
$
|
11,900
|
|
U.K.
|
|
1,378
|
|
|
(2.3
|
)%
|
|
4.4
|
%
|
|
1,411
|
|
||
Brazil
|
|
99
|
|
|
(58.1
|
)%
|
|
(50.7
|
)%
|
|
236
|
|
||
Total Same Stores
|
|
15,096
|
|
|
11.4
|
%
|
|
12.3
|
%
|
|
13,547
|
|
||
Transactions
|
|
607
|
|
|
|
|
|
|
540
|
|
||||
Total
|
|
$
|
15,703
|
|
|
11.5
|
%
|
|
12.4
|
%
|
|
$
|
14,087
|
|
Total manufacturers’ assistance
|
|
$
|
10,483
|
|
|
(5.0
|
)%
|
|
(4.9
|
)%
|
|
$
|
11,035
|
|
|
|
Three Months Ended March 31,
|
||||||
GAAP Basis
|
|
2019
|
|
2018
|
||||
Net cash provided (used in) by operating activities
|
|
$
|
127,939
|
|
|
$
|
148,782
|
|
Net cash provided by (used in) investing activities
|
|
(6,786
|
)
|
|
(116,367
|
)
|
||
Net cash provided by (used in) financing activities
|
|
(102,499
|
)
|
|
(27,534
|
)
|
||
Effect of exchange rate changes on cash
|
|
(519
|
)
|
|
47
|
|
||
Net increase (decrease) in cash, cash equivalents, and restricted cash
|
|
$
|
18,135
|
|
|
$
|
4,928
|
|
|
|
Three Months Ended March 31,
|
||||||
Adjusted, Non-GAAP Basis
|
|
2019
|
|
2018
|
||||
Adjusted net cash provided by (used in) operating activities
|
|
$
|
131,955
|
|
|
$
|
102,491
|
|
Adjusted net cash provided by (used in) investing activities
|
|
(22,464
|
)
|
|
(110,223
|
)
|
||
Adjusted net cash provided by (used in) provided by financing activities
|
|
(90,837
|
)
|
|
12,613
|
|
||
Effect of exchange rate changes on cash
|
|
(519
|
)
|
|
47
|
|
||
Net increase (decrease) in cash, cash equivalents, and restricted cash
|
|
$
|
18,135
|
|
|
$
|
4,928
|
|
U.S. Credit Facilities
|
|
Total
Commitment
|
|
Outstanding
|
|
Available
|
||||||
Floorplan Line
(1)
|
|
$
|
1,440,000
|
|
|
$
|
1,151,854
|
|
|
$
|
288,146
|
|
Acquisition Line
(2)
|
|
360,000
|
|
|
54,860
|
|
|
305,140
|
|
|||
Total Revolving Credit Facility
|
|
1,800,000
|
|
|
1,206,714
|
|
|
593,286
|
|
|||
FMCC Facility
(3)
|
|
300,000
|
|
|
154,213
|
|
|
145,787
|
|
|||
Total U.S. Credit Facilities
(4)
|
|
$
|
2,100,000
|
|
|
$
|
1,360,927
|
|
|
$
|
739,073
|
|
|
As of March 31, 2019
|
|
|
Required
|
Actual
|
Total Adjusted Leverage Ratio
|
< 5.50
|
3.70
|
Fixed Charge Coverage Ratio
|
> 1.20
|
2.46
|
|
|
U.S. Adjustments for
|
||||||||||||||||||
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||||
|
|
U.S. GAAP
|
|
Catastrophic events
|
|
Gain / loss on real estate and dealership transactions
|
|
Legal settlements
|
|
Non-GAAP Adjusted
|
||||||||||
Selling, general and administrative expenses
|
|
$
|
256,153
|
|
|
$
|
(1,973
|
)
|
|
$
|
5,216
|
|
|
$
|
(1,829
|
)
|
|
$
|
257,567
|
|
Income (loss) from operations
|
|
77,530
|
|
|
1,973
|
|
|
(5,216
|
)
|
|
1,829
|
|
|
76,116
|
|
|||||
Income (loss) before income taxes
|
|
46,367
|
|
|
1,973
|
|
|
(5,216
|
)
|
|
1,829
|
|
|
44,953
|
|
|||||
(Provision) benefit for income taxes
|
|
(12,413
|
)
|
|
(519
|
)
|
|
1,381
|
|
|
(481
|
)
|
|
(12,032
|
)
|
|||||
Net income (loss)
|
|
$
|
33,954
|
|
|
$
|
1,454
|
|
|
$
|
(3,835
|
)
|
|
$
|
1,348
|
|
|
$
|
32,921
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SG&A as % gross profit:
|
|
73.8
|
|
|
|
|
|
|
|
|
74.2
|
|
||||||||
Operating margin %:
|
|
3.8
|
|
|
|
|
|
|
|
|
3.7
|
|
||||||||
Pretax margin %:
|
|
2.2
|
|
|
|
|
|
|
|
|
2.2
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Same Store SG&A
|
|
$
|
253,287
|
|
|
$
|
(1,973
|
)
|
|
$
|
1,076
|
|
|
$
|
(1,829
|
)
|
|
$
|
250,561
|
|
Same Store SG&A as % gross profit:
|
|
74.6
|
|
|
|
|
|
|
|
|
73.8
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Same Store operating margin %:
|
|
3.6
|
|
|
|
|
|
|
|
|
3.8
|
|
|
|
Brazil Adjustments for
|
||||||||||
|
|
Three Months Ended March 31, 2019
|
||||||||||
|
|
U.S. GAAP
|
|
Legal settlements
|
|
Non-GAAP Adjusted
|
||||||
Selling, general and administrative expenses
|
|
$
|
12,363
|
|
|
$
|
(572
|
)
|
|
$
|
11,791
|
|
Income (loss) from operations
|
|
(174
|
)
|
|
572
|
|
|
398
|
|
|||
Income (loss) before income taxes
|
|
(435
|
)
|
|
572
|
|
|
137
|
|
|||
(Provision) benefit for income taxes
|
|
(19
|
)
|
|
—
|
|
|
(19
|
)
|
|||
Net income (loss)
|
|
$
|
(454
|
)
|
|
$
|
572
|
|
|
$
|
118
|
|
|
|
|
|
|
|
|
||||||
SG&A as % gross profit:
|
|
98.2
|
|
|
|
|
93.7
|
|
||||
Operating margin %:
|
|
(0.2
|
)
|
|
|
|
0.4
|
|
||||
Pretax margin %:
|
|
(0.4
|
)
|
|
|
|
0.1
|
|
|
|
Consolidated Adjustments for
|
||||||||||||||||||
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||||
|
|
U.S. GAAP
|
|
Catastrophic events
|
|
Gain / loss on real estate and dealership transactions
|
|
Legal settlements
|
|
Non-GAAP Adjusted
|
||||||||||
Selling, general and administrative expenses
|
|
$
|
327,708
|
|
|
$
|
(1,973
|
)
|
|
$
|
5,216
|
|
|
$
|
(2,401
|
)
|
|
$
|
328,550
|
|
Income (loss) from operations
|
|
86,798
|
|
|
1,973
|
|
|
(5,216
|
)
|
|
2,401
|
|
|
85,956
|
|
|||||
Income (loss) before income taxes
|
|
52,176
|
|
|
1,973
|
|
|
(5,216
|
)
|
|
2,401
|
|
|
51,334
|
|
|||||
(Provision) benefit for income taxes
|
|
(13,528
|
)
|
|
(519
|
)
|
|
1,381
|
|
|
(481
|
)
|
|
(13,147
|
)
|
|||||
Net income (loss)
|
|
38,648
|
|
|
1,454
|
|
|
(3,835
|
)
|
|
1,920
|
|
|
38,187
|
|
|||||
Less: Adjusted earnings (loss) allocated to participating securities
|
|
1,455
|
|
|
54
|
|
|
(145
|
)
|
|
73
|
|
|
1,437
|
|
|||||
Adjusted net income (loss) available to diluted common shares
|
|
$
|
37,193
|
|
|
$
|
1,400
|
|
|
$
|
(3,690
|
)
|
|
$
|
1,847
|
|
|
$
|
36,750
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted income (loss) per common share
|
|
$
|
2.08
|
|
|
$
|
0.08
|
|
|
$
|
(0.20
|
)
|
|
$
|
0.10
|
|
|
$
|
2.06
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Effective tax rate %
|
|
25.9
|
|
|
|
|
|
|
|
|
25.6
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SG&A as % gross profit:
|
|
75.9
|
|
|
|
|
|
|
|
|
76.1
|
|
||||||||
Operating margin %:
|
|
3.1
|
|
|
|
|
|
|
|
|
3.1
|
|
||||||||
Pretax margin %:
|
|
1.9
|
|
|
|
|
|
|
|
|
1.8
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Same Store SG&A
|
|
$
|
315,637
|
|
|
$
|
(1,973
|
)
|
|
$
|
1,076
|
|
|
$
|
(1,829
|
)
|
|
$
|
312,911
|
|
Same Store SG&A as % gross profit:
|
|
76.2
|
|
|
|
|
|
|
|
|
75.5
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Same Store income (loss) from operations
|
|
$
|
82,573
|
|
|
$
|
1,973
|
|
|
$
|
(1,076
|
)
|
|
$
|
1,829
|
|
|
$
|
85,299
|
|
Same Store operating margin %:
|
|
3.1
|
|
|
|
|
|
|
|
|
3.2
|
|
|
|
Three Months Ended March 31,
|
||||||||
|
|
2019
|
|
2018
|
|
% Change
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
||||
Net cash provided by (used in) operating activities
|
|
$
|
127,939
|
|
|
$
|
148,782
|
|
|
(14.0)
|
Change in floorplan notes payable-credit facilities, excluding floorplan offset account and net acquisition and disposition related activity
|
|
(21,884
|
)
|
|
(47,791
|
)
|
|
|
||
Change in floorplan notes payable-manufacturer affiliates associated with net acquisition and disposition related activity
|
|
25,900
|
|
|
1,500
|
|
|
|
||
Adjusted net cash provided by (used in) operating activities
|
|
$
|
131,955
|
|
|
$
|
102,491
|
|
|
28.7
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
||||
Net cash provided by (used in) investing activities
|
|
$
|
(6,786
|
)
|
|
$
|
(116,367
|
)
|
|
(94.2)
|
Change in cash paid for acquisitions, associated with floorplan notes payable
|
|
—
|
|
|
6,144
|
|
|
|
||
Change in proceeds from disposition of franchises, property and equipment, associated with floorplan notes payable
|
|
(15,678
|
)
|
|
—
|
|
|
|
||
Adjusted net cash provided by (used in) investing activities
|
|
$
|
(22,464
|
)
|
|
$
|
(110,223
|
)
|
|
(79.6)
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
||||
Net cash provided by (used in) financing activities
|
|
$
|
(102,499
|
)
|
|
$
|
(27,534
|
)
|
|
272.3
|
Change in net borrowings and repayments on floorplan notes payable-credit facilities, excluding net activity associated with our floorplan offset account
|
|
11,662
|
|
|
40,147
|
|
|
|
||
Adjusted net cash provided by (used in) provided by financing activities
|
|
$
|
(90,837
|
)
|
|
$
|
12,613
|
|
|
(820.2)
|
|
|
Q1 2019
|
Q2 2019
|
Q3 2019
|
Q4 2019
|
2020
|
2021
|
2022
|
2023
|
2024
|
2025
|
2026
|
2027
|
2028
|
2029
|
2030
|
||||||||||||||||||||||||||||||
Weighted average notional amount in effect during the period
|
|
$
|
902
|
|
$
|
902
|
|
$
|
901
|
|
$
|
901
|
|
$
|
549
|
|
$
|
418
|
|
$
|
154
|
|
$
|
132
|
|
$
|
125
|
|
$
|
125
|
|
$
|
100
|
|
$
|
100
|
|
$
|
100
|
|
$
|
100
|
|
$
|
100
|
|
Weighted average interest rate during the period
|
|
2.30
|
%
|
2.30
|
%
|
2.30
|
%
|
2.30
|
%
|
2.21
|
%
|
1.77
|
%
|
1.77
|
%
|
1.82
|
%
|
1.81
|
%
|
1.81
|
%
|
1.85
|
%
|
1.85
|
%
|
1.85
|
%
|
1.85
|
%
|
1.85
|
%
|
Period
|
|
Total Number of Shares Purchased
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
(1)
|
||||||
January 1 - January 31, 2019
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
49,706
|
|
February 1 - February 20, 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
49,706
|
|
||
February 21 - February 28, 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
75,000
|
|
||
March 1 - March 31, 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
75,000
|
|
||
Total
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
Exhibit
Number
|
|
|
|
Description
|
|
|
|
|
|
|
—
|
|
Amended and Restated Certificate of Incorporation of Group 1 Automotive, Inc. (incorporated by reference to Exhibit 3.1 of Group 1 Automotive, Inc.’s Current Report on Form 8-K (File No. 001-13461) filed May 22, 2015)
|
|
|
—
|
|
Third Amended and Restated Bylaws of Group 1 Automotive, Inc. (incorporated by reference to Exhibit 3.1 of Group 1 Automotive, Inc.’s Current Report on Form 8-K (File No. 001-13461) filed April 6, 2017)
|
|
|
—
|
|
Form of Performance Share Unit Agreement
|
|
|
—
|
|
Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
—
|
|
Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
—
|
|
Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
—
|
|
Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
101.INS*
|
|
—
|
|
XBRL Instance Document
|
101.SCH*
|
|
—
|
|
XBRL Taxonomy Extension Schema Document
|
101.CAL*
|
|
—
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF*
|
|
—
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB*
|
|
—
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE*
|
|
—
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
*
|
|
Filed or furnished herewith
|
†
|
|
Management contract or compensatory plan or arrangement
|
|
|
|
|
|
Group 1 Automotive, Inc.
|
|
|
|
|
By:
|
/s/ John C. Rickel
|
|
|
John C. Rickel
|
|
|
Senior Vice President and Chief Financial Officer
|
|
|
(Duly Authorized Officer and Principal Financial
|
|
|
and Accounting Officer)
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the period ended
March 31, 2019
of Group 1 Automotive, Inc. (“registrant”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ Earl J. Hesterberg
|
Earl J. Hesterberg
|
Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the period ended
March 31, 2019
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.
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/s/ John C. Rickel
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John C. Rickel
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Chief Financial Officer
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