GROUP 1 AUTOMOTIVE INC - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - 8-K - GROUP 1 AUTOMOTIVE INC	a20153rdquarterearningsrel.htm

Exhibit 99.1

FOR IMMEDIATE RELEASE

Group 1 Automotive Reports Record Third Quarter Earnings

Record Revenue and Strong Expense Leverage Drive 21.7% Adjusted EPS Increase

HOUSTON, October 27, 2015 - Group 1 Automotive, Inc. (NYSE: GPI), an international, Fortune 500 automotive retailer, today reported record third quarter 2015 adjusted net income of $46.0 million, a 15.7 percent increase over the prior year. Adjusted diluted earnings per share of $1.91 were also a third quarter record, reflecting a 21.7 percent increase from the comparable, adjusted prior-year period.

These third quarter results exclude approximately $800 thousand of net, after-tax charges related to non-cash asset impairments. GAAP net income and diluted earnings per share were $45.3 million and $1.88, respectively. Reconciliations of non-GAAP financial measures are included in the attached financial tables.

“We are delighted to announce an all-time quarterly revenue record of $2.8 billion,” said Earl J. Hesterberg, Group 1’s president and chief executive officer. “Continued expense leverage in the United States and strong top-line growth in both the U.S. and U.K. delivered a record third quarter adjusted diluted EPS of $1.91. We were particularly pleased with the double-digit growth in used vehicle unit Same Store sales that all three of our markets delivered this quarter. In addition, our U.K. operations had an outstanding quarter, with revenue up 39.6 percent on a constant currency basis. Finally, while overall market conditions continue to be challenging in Brazil, with new vehicle industry volumes declining over 25 percent on a year-over-year basis, our team in Brazil grew Same Store revenue by 7.1 percent on a constant currency basis and delivered another profitable quarter,” Hesterberg added.

Consolidated Results for Third Quarter 2015 (year-over-year comparable basis)


▪	Total revenue increased 6.6 percent to an all-time quarterly record of $2.8 billion; total gross profit grew 6.3 percent, to $398.4 million, also an all-time quarterly record. On a constant currency basis, revenues were up 10.2 percent.


▪	New vehicle revenue increased 5.3 percent, reflecting 5.9 percent higher unit sales. On a Same Store basis, new unit sales increased 19.1 percent in the U.K., 4.4 percent in the U.S., and 1.3 percent in Brazil.


▪	Used vehicle retail revenue increased 11.6 percent, primarily reflecting 12.9 percent higher used retail unit sales. On a Same Store basis, used retail unit sales increased 10.3 percent in the U.S., 19.0 percent in the U.K., and 15.3 percent in Brazil.


▪	Parts and service gross profit increased 7.8 percent on revenue growth of 4.0 percent (7.0 percent on a constant currency basis). U.S. Same Store parts and service gross profit increased 9.4 percent on revenue growth of 6.6 percent.


▪	Finance and Insurance (F&I) gross profit increased 10.9 percent, as total retail units sold increased 8.7 percent and F&I per retail unit improved $27, to $1,352. U.S. Same Store F&I gross profit grew 10.8 percent, as F&I per retail unit improved $55, to $1,518.


▪	Adjusted selling, general and administrative (SG&A) expenses as a percent of gross profit improved 140 basis points, to 72.5 percent. On a GAAP basis, SG&A expenses as a percent of gross profit increased 200 basis points, to 72.5 percent.


▪	Adjusted operating margin improved 20 basis points, to 3.5 percent. On a GAAP basis, operating margin improved 10 basis points, to 3.5 percent.

Segment Results for Third Quarter 2015 (year-over-year comparable basis)


▪	United States:

The Company’s U.S. operations accounted for 83.7 percent of total revenues and 87.4 percent of total gross profit. Total U.S. revenues increased 7.7 percent, to $2.3 billion. This increase reflects improvements in all areas of the business, including growth of 6.6 percent and 10.2 percent in new and total used vehicle sales, respectively, and a 12.0 percent increase in F&I revenue, driven by the increase in volume and improved income per retail unit of $65 to $1,515. In addition, parts and service revenue increased 6.1 percent. The higher revenue and expanded parts and service gross margin of 180 basis points drove total U.S. gross profit growth of 8.2 percent.

On a comparable basis, adjusted SG&A expenses as a percent of gross margin improved 150 basis points to 71.4 percent and adjusted operating margin grew 20 basis points to 3.8 percent.


▪	United Kingdom:

The Company’s U.K. operations accounted for 11.7 percent of total revenues and 9.1 percent of total gross profit. Total revenue increased 29.8 percent (39.6 percent on a constant currency basis) to $327.4 million, and gross profit increased 21.5 percent (30.5 percent on a constant currency basis). The revenue increase was driven by new vehicle retail growth of 34.2 percent, total used vehicle growth of 25.1 percent, parts and service growth of 23.1 percent, and an F&I revenue increase of 27.0 percent.


▪	Brazil:

The Company’s Brazil operations accounted for 4.6 percent of total revenues and 3.5 percent of total gross profit. On a Same Store constant currency basis, revenues increased 7.1 percent, driven by a 1.3 percent increase in new vehicle retail unit sales, a 15.3 percent increase in used retail unit sales, and a 3.7 percent increase in parts and service revenues.

Corporate Development

During the third quarter of 2015, the Company acquired Mercedes-Benz, Sprinter, and Smart franchises within the greater metropolitan area of Austin, Texas that are expected to generate approximately $100 million in annual revenues.

Year to date, the Company has acquired five franchises that are expected to generate approximately $340 million in annual revenues and disposed of four franchises that generated trailing-twelve-month revenues of approximately $30 million.

Share Repurchase Authorization

During the quarter, the Company repurchased 443,447 shares at an average price per share of $85.69 for a total of $38.0 million. Year to date, the Company has repurchased approximately 850,000 shares at an average price of $83.67 for a total of $71.1 million. As of September 30, 2015, $28.3 million remains available under the Company’s prior common stock share repurchase authorization. Future repurchases may be made from time to time, based on market conditions, legal requirements and other corporate considerations, in the open market or in privately negotiated transactions.

Third Quarter Earnings Conference Call Details

The Company’s senior management will host a conference call today at 10 a.m. ET to discuss the third quarter financial results and the Company’s outlook and strategy.

The conference call will be simulcast live on the Internet at www.group1auto.com, then click on ‘Investor Relations’ and then ‘Events’ or through this link: http://www.group1corp.com/events. A webcast replay will be available for 30 days.

The conference call will also be available live by dialing in 15 minutes prior to the start of the call at:

Domestic: 1-888-317-6003

International: 1-412-317-6061

Access Code: 5636460

A telephonic replay will be available following the call through November 20, 2015 at 11:59 p.m. ET by dialing:

Domestic: 1-877-344-7529

International: 1-412-317-0088

Access Code: 10074627

About Group 1 Automotive, Inc.

Group 1 owns and operates 153 automotive dealerships, 200 franchises, and 35 collision centers in the United States, the United Kingdom and Brazil that offer 32 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service and insurance contracts; provides automotive maintenance and repair services; and sells vehicle parts.

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

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements related to future, not past, events and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. In this context, the forward-looking statements often include statements regarding our goals, plans, projections and guidance regarding our financial position, results of operations, market position, pending and potential future acquisitions and business strategy, and often contain words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “should,” “foresee,” “may” or “will” and similar expressions. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Any such forward-looking statements are not assurances of future performance and involve risks and uncertainties that may cause actual results to differ materially from those set forth in the statements. These risks and uncertainties include, among other things, (a) general economic and business conditions, (b) the level of manufacturer incentives, (c) the future regulatory environment, (d) our ability to obtain an inventory of desirable new and used vehicles, (e) our relationship with our automobile manufacturers and the willingness of manufacturers to approve future acquisitions, (f) our cost of financing and the availability of credit for consumers, (g) our ability to complete acquisitions and dispositions and the risks associated therewith, (h) foreign exchange controls and currency fluctuations, and (i) our ability to retain key personnel. For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with the SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.

SOURCE: Group 1 Automotive, Inc.

Investor contacts:

Sheila Roth

Manager, Investor Relations

Group 1 Automotive, Inc.

713-647-5741 | sroth@group1auto.com

Media contacts:

Pete DeLongchamps

V.P. Manufacturer Relations, Financial Services and Public Affairs

Group 1 Automotive, Inc.

713-647-5770 | pdelongchamps@group1auto.com

Clint Woods

Pierpont Communications, Inc.

713-627-2223 | cwoods@piercom.com



Group 1 Automotive, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)

	Three Months Ended September 30,
	2015			2014			% Change
REVENUES:
New vehicle retail sales	$	1,601,213		$	1,521,246		5.3
Used vehicle retail sales	687,637			615,924			11.6
Used vehicle wholesale sales	100,483			100,347			0.1
Parts and service	303,557			291,816			4.0
Finance and insurance	107,679			97,115			10.9
Total revenues	2,800,569			2,626,448			6.6
COST OF SALES:
New vehicle retail sales	1,521,721			1,441,016			5.6
Used vehicle retail sales	641,055			571,613			12.1
Used vehicle wholesale sales	102,318			101,643			0.7
Parts and service	137,093			137,467			(0.3	)
Total cost of sales	2,402,187			2,251,739			6.7
GROSS PROFIT	398,382			374,709			6.3
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	289,012			264,233			9.4
DEPRECIATION AND AMORTIZATION EXPENSE	11,811			10,746			9.9
ASSET IMPAIRMENTS	916			9,373			(90.2	)
OPERATING INCOME	96,643			90,357			7.0
OTHER EXPENSE:
Floorplan interest expense	(9,685		)	(10,452		)	(7.3	)
Other interest expense, net	(13,922		)	(13,246		)	5.1
Loss on extinguishment of long-term debt	—			(22,790		)	(100.0	)
INCOME BEFORE INCOME TAXES	73,036			43,869			66.5
PROVISION FOR INCOME TAXES	(27,775		)	(17,707		)	56.9
NET INCOME	$	45,261		$	26,162		73.0
Earnings allocated to participating securities	$	(1,729	)	$	(1,000	)	72.9
Earnings available to diluted common shares	$	43,532		$	25,162		73.0
DILUTED EARNINGS PER SHARE	$	1.88		$	1.03		82.5
Weighted average dilutive common shares outstanding	23,137			24,432			(5.3	)
Weighted average participating securities	925			971			(4.7	)
Total weighted average shares outstanding	24,062			25,403			(5.3	)



	Nine Months Ended September 30,
	2015			2014			% Change
REVENUES:
New vehicle retail sales	$	4,468,200		$	4,256,146		5.0
Used vehicle retail sales	1,993,124			1,743,071			14.3
Used vehicle wholesale sales	302,186			284,491			6.2
Parts and service	888,939			844,340			5.3
Finance and insurance	307,454			270,901			13.5
Total revenues	7,959,903			7,398,949			7.6
COST OF SALES:
New vehicle retail sales	4,242,847			4,028,164			5.3
Used vehicle retail sales	1,854,361			1,610,293			15.2
Used vehicle wholesale sales	302,276			281,434			7.4
Parts and service	406,580			397,079			2.4
Total cost of sales	6,806,064			6,316,970			7.7
GROSS PROFIT	1,153,839			1,081,979			6.6
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	841,050			793,761			6.0
DEPRECIATION AND AMORTIZATION EXPENSE	35,441			31,424			12.8
ASSET IMPAIRMENTS	1,955			11,094			(82.4	)
OPERATING INCOME	275,393			245,700			12.1
OTHER EXPENSE:
Floorplan interest expense	(29,046		)	(31,695		)	(8.4	)
Other interest expense, net	(42,061		)	(36,326		)	15.8
Loss on extinguishment of long-term debt	—			(46,403		)	(100.0	)
INCOME BEFORE INCOME TAXES	204,286			131,276			55.6
PROVISION FOR INCOME TAXES	(76,901		)	(56,949		)	35.0
NET INCOME	$	127,385		$	74,327		71.4
Earnings allocated to participating securities	$	(4,905	)	$	(2,769	)	77.1
Earnings available to diluted common shares	$	122,480		$	71,558		71.2
DILUTED EARNINGS PER SHARE	$	5.26		$	2.82		86.5
Weighted average dilutive common shares outstanding	23,298			25,363			(8.1	)
Weighted average participating securities	934			973			(4.0	)
Total weighted average shares outstanding	24,232			26,336			(8.0	)



Group 1 Automotive, Inc.
Consolidated Balance Sheets
(Dollars in thousands)
	September 30,			December 31,
	2015			2014			% Change
	(Unaudited)
ASSETS:
CURRENT ASSETS:
Cash and cash equivalents	$	21,968		$	40,975		(46.4	)
Contracts in transit and vehicle receivables, net	205,636			237,448			(13.4	)
Accounts and notes receivable, net	147,110			151,330			(2.8	)
Inventories, net	1,634,421			1,556,705			5.0
Deferred income taxes	13,099			11,062			18.4
Prepaid expenses and other current assets	22,556			37,699			(40.2	)
Total current assets	2,044,790			2,035,219			0.5
PROPERTY AND EQUIPMENT, net	978,892			950,388			3.0
GOODWILL AND INTANGIBLE FRANCHISE RIGHTS	1,252,402			1,134,324			10.4
OTHER ASSETS	15,966			21,561			(25.9	)
Total assets	$	4,292,050		$	4,141,492		3.6

LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES:
Floorplan notes payable - credit facility and other	$	1,177,513		$	1,143,246		3.0
Offset account related to floorplan notes payable - credit facility	(28,073		)	(39,616		)	(29.1	)
Floorplan notes payable - manufacturer affiliates	347,657			307,656			13.0
Offset account related to floorplan notes payable - manufacturer affiliates	(20,001		)	(22,500		)	(11.1	)
Current maturities of long-term debt	55,959			72,630			(23.0	)
Accounts payable	290,509			288,320			0.8
Accrued expenses	158,283			172,463			(8.2	)
Total current liabilities	1,981,847			1,922,199			3.1
5.00% SENIOR NOTES (aggregate principal of $550,000 at September 30, 2015 and December 31, 2014)	540,957			540,100			0.2
REAL ESTATE CREDIT FACILITY, net of current maturities	24,594			27,099			(9.2	)
ACQUISITION LINE	138,201			69,713			98.2
OTHER REAL ESTATE RELATED AND LONG-TERM DEBT, net of current maturities	331,194			319,984			3.5
CAPITAL LEASE OBLIGATIONS RELATED TO REAL ESTATE, net of current maturities	49,215			51,941			(5.2	)
DEFERRED INCOME TAXES	147,296			141,239			4.3
LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES	39,724			25,311			56.9
OTHER LIABILITIES	69,694			65,896			5.8
STOCKHOLDERS' EQUITY:
Common stock	257			257			—
Additional paid-in capital	288,754			286,854			0.7
Retained earnings	964,703			852,057			13.2
Accumulated other comprehensive loss	(145,805		)	(81,984		)	77.8
Treasury stock	(138,581		)	(79,174		)	75.0
Total stockholders' equity	969,328			978,010			(0.9	)
Total liabilities and stockholders' equity	$	4,292,050		$	4,141,492		3.6



Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)

		Three Months Ended		Nine Months Ended
		September 30,		September 30,
		2015 (%)	2014 (%)	2015 (%)	2014 (%)
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
Region	Geographic Market
East	Massachusetts	6.0	6.6	6.1	5.9
	Georgia	4.5	4.8	4.6	4.7
	New Jersey	2.3	2.7	2.3	3.2
	Florida	2.3	1.4	2.0	1.4
	New Hampshire	2.1	2.1	2.0	2.2
	Louisiana	1.5	1.6	1.6	1.7
	Mississippi	1.5	1.4	1.5	1.4
	South Carolina	1.4	1.6	1.4	1.5
	Alabama	0.6	0.7	0.7	0.8
	Maryland	0.5	0.5	0.5	0.5
	New York	—	1.2	—	1.7
		22.7	24.6	22.7	25.0

West	Texas	38.6	37.1	38.4	35.4
	California	9.5	9.3	9.7	9.6
	Oklahoma	7.8	8.6	7.7	8.4
	Kansas	2.0	2.1	2.1	2.3
	Louisiana	0.7	0.6	0.7	0.6
		58.6	57.7	58.6	56.3

International	United Kingdom	11.1	8.5	11.0	8.9
	Brazil	7.6	9.2	7.7	9.8
		100.0	100.0	100.0	100.0
NEW VEHICLE UNIT SALES BRAND MIX:
Toyota/Scion/Lexus		26.6	28.3	26.6	27.2
Ford/Lincoln		11.6	10.4	11.6	11.1
BMW/MINI		11.3	10.7	11.4	11.2
Honda/Acura		11.1	10.5	10.9	11.2
Nissan		8.0	8.9	8.4	9.3
Chevrolet/GMC/Buick/Cadillac		7.8	7.0	7.5	6.0
Volkswagen/Audi/Porsche		7.7	6.2	7.0	6.3
Hyundai/Kia		5.4	5.7	5.8	5.5
Chrysler/Dodge/Jeep/RAM		4.6	4.4	4.6	4.4
Mercedes-Benz/smart/Sprinter		3.8	4.2	4.1	4.2
Other		2.1	3.7	2.1	3.6
		100.0	100.0	100.0	100.0



Group 1 Automotive, Inc.
Additional Information - U.S.
(Unaudited)
(Dollars in thousands, except per unit amounts)

	Three Months Ended September 30,
	2015			2014			% Change
REVENUES:
New vehicle retail sales	$	1,327,049		$	1,245,430		6.6
Used vehicle retail sales	577,426			515,911			11.9
Used vehicle wholesale sales	74,161			75,272			(1.5	)
Total used	651,587			591,183			10.2
Parts and service	264,979			249,724			6.1
Finance and insurance	99,952			89,268			12.0
Total	$	2,343,567		$	2,175,605		7.7
GROSS MARGIN %:
New vehicle retail sales	4.7			5.0
Used vehicle retail sales	7.1			7.4
Used vehicle wholesale sales	(2.5		)	(1.9		)
Total used	6.0			6.2
Parts and service	55.4			53.6
Finance and insurance	100.0			100.0
Total	14.9			14.8
GROSS PROFIT:
New vehicle retail sales	$	62,428		$	61,975		0.7
Used vehicle retail sales	41,053			38,251			7.3
Used vehicle wholesale sales	(1,855		)	(1,431		)	29.6
Total used	39,198			36,820			6.5
Parts and service	146,737			133,874			9.6
Finance and insurance	99,952			89,268			12.0
Total	$	348,315		$	321,937		8.2
UNITS SOLD:
Retail new vehicles sold	38,331			36,649			4.6
Retail used vehicles sold	27,664			24,917			11.0
Wholesale used vehicles sold	11,733			11,984			(2.1	)
Total used	39,397			36,901			6.8
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	34,621		$	33,983		1.9
Used vehicle retail	$	20,873		$	20,705		0.8
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,629		$	1,691		(3.7	)
Used vehicle retail sales	1,484			1,535			(3.3	)
Used vehicle wholesale sales	(158		)	(119		)	32.8
Total used	995			998			(0.3	)
Finance and insurance (per retail unit)	$	1,515		$	1,450		4.5
OTHER: ⁽¹⁾
SG&A expenses	$	248,771		$	234,849		5.9
SG&A as % revenues	10.6			10.8
SG&A as % gross profit	71.4			72.9
Operating margin %	3.8			3.6
Pretax margin %	2.9			2.6
INTEREST EXPENSE:
Floorplan interest	$	(8,964	)	$	(8,543	)	4.9
Floorplan assistance	13,344			11,876			12.4
Net floorplan income	$	4,380		$	3,333		31.4
Other interest expense, net	$	(12,737	)	$	(12,265	)	3.8




	Nine Months Ended September 30,
	2015			2014			% Change
REVENUES:
New vehicle retail sales	$	3,693,777		$	3,449,303		7.1
Used vehicle retail sales	1,661,932			1,440,473			15.4
Used vehicle wholesale sales	217,032			208,392			4.1
Total used	1,878,964			1,648,865			14.0
Parts and service	771,986			723,839			6.7
Finance and insurance	284,787			248,820			14.5
Total	$	6,629,514		$	6,070,827		9.2
GROSS MARGIN %:
New vehicle retail sales	4.8			5.1
Used vehicle retail sales	7.3			8.0
Used vehicle wholesale sales	(0.1		)	0.9
Total used	6.5			7.1
Parts and service	54.8			53.6
Finance and insurance	100.0			100.0
Total	15.2			15.3
GROSS PROFIT:
New vehicle retail sales	$	175,549		$	175,006		0.3
Used vehicle retail sales	121,906			114,613			6.4
Used vehicle wholesale sales	(167		)	1,964			(108.5	)
Total used	121,739			116,577			4.4
Parts and service	422,912			388,042			9.0
Finance and insurance	284,787			248,820			14.5
Total	$	1,004,987		$	928,445		8.2
UNITS SOLD:
Retail new vehicles sold	106,651			101,281			5.3
Retail used vehicles sold	79,647			70,367			13.2
Wholesale used vehicles sold	33,542			32,395			3.5
Total used	113,189			102,762			10.1
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	34,634		$	34,057		1.7
Used vehicle retail	$	20,866		$	20,471		1.9
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,646		$	1,728		(4.7	)
Used vehicle retail sales	1,531			1,629			(6.0	)
Used vehicle wholesale sales	(5		)	61			(108.2	)
Total used	1,076			1,134			(5.1	)
Finance and insurance (per retail unit)	$	1,529		$	1,450		5.4
OTHER: ⁽¹⁾
SG&A expenses	$	717,708		$	677,142		6.0
SG&A as % revenues	10.8			11.2
SG&A as % gross profit	71.4			72.9
Operating margin %	3.9			3.7
Pretax margin %	2.9			2.7
INTEREST EXPENSE:
Floorplan interest	$	(26,440	)	$	(25,489	)	3.7
Floorplan assistance	36,503			32,969			10.7
Net floorplan income	$	10,063		$	7,480		34.5
Other interest expense, net	$	(38,534	)	$	(34,327	)	12.3

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



Group 1 Automotive, Inc.
Additional Information - U.K.
(Unaudited)
(Dollars in thousands, except per unit amounts)
(Dollars in thousands, except per unit amounts)
	Three Months Ended September 30,
	2015			2014			% Change		Local Currency % Change
REVENUES:
New vehicle retail sales	$	180,967		$	134,859		34.2		44.0
Used vehicle retail sales	89,321			70,163			27.3		37.1
Used vehicle wholesale sales	24,859			21,110			17.8		27.0
Total used	114,180			91,273			25.1		34.8
Parts and service	26,193			21,272			23.1		32.7
Finance and insurance	6,091			4,797			27.0		36.6
Total	$	327,431		$	252,201		29.8		39.6
GROSS MARGIN %:
New vehicle retail sales	6.1			6.9
Used vehicle retail sales	5.2			5.9
Used vehicle wholesale sales	(0.3		)	(0.8		)
Total used	4.0			4.4
Parts and service	55.6			55.2
Finance and insurance	100.0			100.0
Total	11.1			11.8
GROSS PROFIT:
New vehicle retail sales	$	11,060		$	9,305		18.9		27.0
Used vehicle retail sales	4,631			4,165			11.2		19.5
Used vehicle wholesale sales	(73		)	(174		)	(58.0	)	(53.4	)
Total used	4,558			3,991			14.2		22.7
Parts and service	14,554			11,746			23.9		33.5
Finance and insurance	6,091			4,797			27.0		36.6
Total	$	36,263		$	29,839		21.5		30.5
UNITS SOLD:
Retail new vehicles sold	5,213			3,773			38.2
Retail used vehicles sold	3,582			2,649			35.2
Wholesale used vehicles sold	2,791			2,183			27.9
Total used	6,373			4,832			31.9
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	34,715		$	35,743		(2.9	)	4.2
Used vehicle retail	$	24,936		$	26,487		(5.9	)	1.4
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	2,122		$	2,466		(13.9	)	(8.1	)
Used vehicle retail sales	1,293			1,572			(17.7	)	(11.6	)
Used vehicle wholesale sales	(26		)	(80		)	(67.5	)	(63.5	)
Total used	715			826			(13.4	)	(6.9	)
Finance and insurance (per retail unit)	$	693		$	747		(7.2	)	(0.2	)
OTHER: ⁽¹⁾
SG&A expenses	$	28,124		$	22,275		26.3		36.0
SG&A as % revenues	8.6			8.8
SG&A as % gross profit	77.6			74.7
Operating margin %	2.2			2.7
Pretax margin %	1.7			2.3
INTEREST EXPENSE:
Floorplan interest	$	(625	)	$	(419	)	49.2
Floorplan assistance	201			246			(18.3	)
Net floorplan expense	$	(424	)	$	(173	)	145.1
Other interest expense, net	$	(780	)	$	(442	)	76.5



	Nine Months Ended September 30,
	2015			2014			% Change		Local Currency % Change
REVENUES:
New vehicle retail sales	$	492,424		$	397,263		24.0		35.1
Used vehicle retail sales	269,629			214,900			25.5		36.7
Used vehicle wholesale sales	78,692			62,304			26.3		37.8
Total used	348,321			277,204			25.7		37.0
Parts and service	76,983			62,843			22.5		33.4
Finance and insurance	17,411			13,916			25.1		36.3
Total	$	935,139		$	751,226		24.5		35.6
GROSS MARGIN %:
New vehicle retail sales	6.3			6.8
Used vehicle retail sales	5.3			5.9
Used vehicle wholesale sales	(0.5		)	—
Total used	4.0			4.6
Parts and service	55.0			55.1
Finance and insurance	100.0			100.0
Total	11.2			11.7
GROSS PROFIT:
New vehicle retail sales	$	30,802		$	26,843		14.7		25.0
Used vehicle retail sales	14,164			12,684			11.7		21.7
Used vehicle wholesale sales	(385		)	(4		)	9,525.0		9,647.3
Total used	13,779			12,680			8.7		18.5
Parts and service	42,345			34,655			22.2		33.1
Finance and insurance	17,411			13,916			25.1		36.3
Total	$	104,337		$	88,094		18.4		29.0
UNITS SOLD:
Retail new vehicles sold	14,408			11,144			29.3
Retail used vehicles sold	10,863			8,108			34.0
Wholesale used vehicles sold	8,682			6,539			32.8
Total used	19,545			14,647			33.4
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	34,177		$	35,648		(4.1	)	4.5
Used vehicle retail	$	24,821		$	26,505		(6.4	)	2.0
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	2,138		$	2,409		(11.2	)	(3.3	)
Used vehicle retail sales	1,304			1,564			(16.6	)	(9.1	)
Used vehicle wholesale sales	(44		)	(1		)	4,300.0		7,241.4
Total used	705			866			(18.6	)	(11.2	)
Finance and insurance (per retail unit)	$	689		$	723		(4.7	)	3.8
OTHER: ⁽¹⁾
SG&A expenses	$	81,320		$	67,063		21.3		32.1
SG&A as % revenues	8.7			8.9
SG&A as % gross profit	77.9			76.1
Operating margin %	2.1			2.5
Pretax margin %	1.7			2.1
INTEREST EXPENSE:
Floorplan interest	$	(1,689	)	$	(1,188	)	42.2
Floorplan assistance	584			504			15.9
Net floorplan expense	$	(1,105	)	$	(684	)	61.5
Other interest expense, net	$	(2,339	)	$	(1,402	)	66.8



Group 1 Automotive, Inc.
Additional Information - Brazil
(Unaudited)
(Dollars in thousands, except per unit amounts)

	Three Months Ended September 30,
	2015			2014			% Change		Local Currency % Change
REVENUES:
New vehicle retail sales	$	93,197		$	140,957		(33.9	)	1.8
Used vehicle retail sales	20,890			29,850			(30.0	)	8.1
Used vehicle wholesale sales	1,463			3,965			(63.1	)	(44.5	)
Total used	22,353			33,815			(33.9	)	2.0
Parts and service	12,385			20,820			(40.5	)	(8.1	)
Finance and insurance	1,636			3,050			(46.4	)	(15.7	)
Total	$	129,571		$	198,642		(34.8	)	0.5
GROSS MARGIN %:
New vehicle retail sales	6.4			6.3
Used vehicle retail sales	4.3			6.3
Used vehicle wholesale sales	6.4			7.8
Total used	4.4			6.5
Parts and service	41.8			41.9
Finance and insurance	100.0			100.0
Total	10.7			11.5
GROSS PROFIT:
New vehicle retail sales	$	6,004		$	8,950		(32.9	)	2.7
Used vehicle retail sales	898			1,895			(52.6	)	(26.8	)
Used vehicle wholesale sales	93			309			(69.9	)	(55.1	)
Total used	991			2,204			(55.0	)	(30.8	)
Parts and service	5,173			8,729			(40.7	)	(8.5	)
Finance and insurance	1,636			3,050			(46.4	)	(15.7	)
Total	$	13,804		$	22,933		(39.8	)	(7.2	)
UNITS SOLD:
Retail new vehicles sold	3,582			4,072			(12.0	)
Retail used vehicles sold	1,245			1,210			2.9
Wholesale used vehicles sold	402			583			(31.0	)
Total used	1,647			1,793			(8.1	)
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	26,018		$	34,616		(24.8	)	15.7
Used vehicle retail	$	16,779		$	24,669		(32.0	)	5.1
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,676		$	2,198		(23.7	)	16.7
Used vehicle retail sales	721			1,566			(54.0	)	(28.9	)
Used vehicle wholesale sales	231			530			(56.4	)	(34.8	)
Total used	602			1,229			(51.0	)	(24.7	)
Finance and insurance (per retail unit)	$	339		$	577		(41.2	)	(7.8	)
OTHER: ⁽¹⁾
SG&A expenses	$	12,117		$	19,920		(39.2	)	(6.3	)
SG&A as % revenues	9.4			10.0
SG&A as % gross profit	87.8			86.9
Operating margin %	1.0			1.2
Pretax margin %	0.6			0.2
INTEREST EXPENSE:
Floorplan interest	$	(96	)	$	(1,490	)	(93.6	)
Floorplan assistance	—			—			—
Net floorplan expense	$	(96	)	$	(1,490	)	(93.6	)
Other interest expense, net	$	(405	)	$	(539	)	(24.9	)



	Nine Months Ended September 30,
	2015			2014			% Change		Local Currency % Change
REVENUES:
New vehicle retail sales	$	281,999		$	409,580		(31.1	)	(5.4	)
Used vehicle retail sales	61,563			87,698			(29.8	)	(3.8	)
Used vehicle wholesale sales	6,462			13,795			(53.2	)	(37.9	)
Total used	68,025			101,493			(33.0	)	(8.4	)
Parts and service	39,970			57,658			(30.7	)	(4.9	)
Finance and insurance	5,256			8,165			(35.6	)	(11.3	)
Total	$	395,250		$	576,896		(31.5	)	(6.0	)
GROSS MARGIN %:
New vehicle retail sales	6.7			6.4
Used vehicle retail sales	4.4			6.2
Used vehicle wholesale sales	7.1			8.0
Total used	4.6			6.5
Parts and service	42.8			42.6
Finance and insurance	100.0			100.0
Total	11.3			11.3
GROSS PROFIT:
New vehicle retail sales	$	19,002		$	26,133		(27.3	)	(0.3	)
Used vehicle retail sales	2,693			5,481			(50.9	)	(32.9	)
Used vehicle wholesale sales	462			1,097			(57.9	)	(44.6	)
Total used	3,155			6,578			(52.0	)	(34.8	)
Parts and service	17,102			24,564			(30.4	)	(4.7	)
Finance and insurance	5,256			8,165			(35.6	)	(11.3	)
Total	$	44,515		$	65,440		(32.0	)	(6.8	)
UNITS SOLD:
Retail new vehicles sold	10,071			12,274			(17.9	)
Retail used vehicles sold	3,403			3,899			(12.7	)
Wholesale used vehicles sold	1,269			1,830			(30.7	)
Total used	4,672			5,729			(18.4	)
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	28,001		$	33,370		(16.1	)	15.3
Used vehicle retail	$	18,091		$	22,492		(19.6	)	10.2
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,887		$	2,129		(11.4	)	21.5
Used vehicle retail sales	791			1,406			(43.7	)	(23.1	)
Used vehicle wholesale sales	364			599			(39.2	)	(20.0	)
Total used	675			1,148			(41.2	)	(20.1	)
Finance and insurance (per retail unit)	$	390		$	505		(22.8	)	6.5
OTHER: ⁽¹⁾
SG&A expenses	$	40,915		$	60,342		(32.2	)	(7.4	)
SG&A as % revenues	10.4			10.5
SG&A as % gross profit	91.9			92.2
Operating margin %	0.6			0.6
Pretax margin %	—			(0.4		)
INTEREST EXPENSE:
Floorplan interest	$	(917	)	$	(5,018	)	(81.7	)
Floorplan assistance	—			—			—
Net floorplan expense	$	(917	)	$	(5,018	)	(81.7	)
Other interest expense, net	$	(1,188	)	$	(597	)	99.0
⁽¹⁾ These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for the description of aforementioned adjustments.



Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
(Dollars in thousands, except per unit amounts)

	Three Months Ended September 30,
	2015			2014			% Change		Local Currency % Change
REVENUES:
New vehicle retail sales	$	1,601,213		$	1,521,246		5.3		9.4
Used vehicle retail sales	687,637			615,924			11.6		14.6
Used vehicle wholesale sales	100,483			100,347			0.1		2.8
Total used	788,120			716,271			10.0		13.0
Parts and service	303,557			291,816			4.0		7.0
Finance and insurance	107,679			97,115			10.9		12.3
Total	$	2,800,569		$	2,626,448		6.6		10.2
GROSS MARGIN %:
New vehicle retail sales	5.0			5.3
Used vehicle retail sales	6.8			7.2
Used vehicle wholesale sales	(1.8		)	(1.3		)
Total used	5.7			6.0
Parts and service	54.8			52.9
Finance and insurance	100.0			100.0
Total	14.2			14.3
GROSS PROFIT:
New vehicle retail sales	$	79,492		$	80,230		(0.9	)	4.0
Used vehicle retail sales	46,582			44,311			5.1		7.0
Used vehicle wholesale sales	(1,835		)	(1,296		)	41.6		38.8
Total used	44,747			43,015			4.0		6.1
Parts and service	166,464			154,349			7.8		10.4
Finance and insurance	107,679			97,115			10.9		12.3
Total	$	398,382		$	374,709		6.3		9.0
UNITS SOLD:
Retail new vehicles sold	47,126			44,494			5.9
Retail used vehicles sold	32,491			28,776			12.9
Wholesale used vehicles sold	14,926			14,750			1.2
Total used	47,417			43,526			8.9
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	33,977		$	34,190		(0.6	)	3.3
Used vehicle retail	$	21,164		$	21,404		(1.1	)	1.5
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,687		$	1,803		(6.4	)	(1.8	)
Used vehicle retail sales	1,434			1,540			(6.9	)	(5.2	)
Used vehicle wholesale sales	(123		)	(88		)	39.8		37.1
Total used	944			988			(4.5	)	(2.6	)
Finance and insurance (per retail unit)	$	1,352		$	1,325		2.0		3.4
OTHER: ⁽¹⁾
SG&A expenses	$	289,012		$	277,044		4.3		7.5
SG&A as % revenues	10.3			10.5
SG&A as % gross profit	72.5			73.9
Operating margin %	3.5			3.3
Pretax margin %	2.6			2.4
INTEREST EXPENSE:
Floorplan interest	$	(9,685	)	$	(10,452	)	(7.3	)
Floorplan assistance	13,545			12,122			11.7
Net floorplan expense	$	3,860		$	1,670		131.1
Other interest expense, net	$	(13,922	)	$	(13,246	)	5.1



	Nine Months Ended September 30,
	2015			2014			% Change		Local Currency % Change
REVENUES:
New vehicle retail sales	$	4,468,200		$	4,256,146		5.0		8.5
Used vehicle retail sales	1,993,124			1,743,071			14.3		17.0
Used vehicle wholesale sales	302,186			284,491			6.2		9.5
Total used	2,295,310			2,027,562			13.2		16.0
Parts and service	888,939			844,340			5.3		7.9
Finance and insurance	307,454			270,901			13.5		14.8
Total	$	7,959,903		$	7,398,949		7.6		10.7
GROSS MARGIN %:
New vehicle retail sales	5.0			5.4
Used vehicle retail sales	7.0			7.6
Used vehicle wholesale sales	—			1.1
Total used	6.0			6.7
Parts and service	54.3			53.0
Finance and insurance	100.0			100.0
Total	14.5			14.6
GROSS PROFIT:
New vehicle retail sales	$	225,353		$	227,982		(1.2	)	3.1
Used vehicle retail sales	138,763			132,778			4.5		6.2
Used vehicle wholesale sales	(90		)	3,057			(102.9	)	(99.2	)
Total used	138,673			135,835			2.1		3.8
Parts and service	482,359			447,261			7.8		10.1
Finance and insurance	307,454			270,901			13.5		14.8
Total	$	1,153,839		$	1,081,979		6.6		9.0
UNITS SOLD:
Retail new vehicles sold	131,130			124,699			5.2
Retail used vehicles sold	93,913			82,374			14.0
Wholesale used vehicles sold	43,493			40,764			6.7
Total used	137,406			123,138			11.6
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	34,075		$	34,131		(0.2	)	3.2
Used vehicle retail	$	21,223		$	21,160		0.3		2.7
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,719		$	1,828		(6.0	)	(1.9	)
Used vehicle retail sales	1,478			1,612			(8.3	)	(6.8	)
Used vehicle wholesale sales	(2		)	75			(102.7	)	(99.2	)
Total used	1,009			1,103			(8.5	)	(6.9	)
Finance and insurance (per retail unit)	$	1,366		$	1,308		4.4		5.6
OTHER: ⁽¹⁾
SG&A expenses	$	839,944		$	804,547		4.4		7.2
SG&A as % revenues	10.6			10.9
SG&A as % gross profit	72.8			74.4
Operating margin %	3.5			3.3
Pretax margin %	2.6			2.4
INTEREST EXPENSE:
Floorplan interest	$	(29,046	)	$	(31,695	)	(8.4	)
Floorplan assistance	37,087			33,473			10.8
Net floorplan expense	$	8,041		$	1,778		352.2
Other interest expense, net	$	(42,061	)	$	(36,326	)	15.8
⁽¹⁾ These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.



Group 1 Automotive, Inc.
Additional Information - Same Store U.S. ⁽¹⁾
(Unaudited)
(Dollars in thousands, except per unit amounts)

	Three Months Ended September 30,
	2015			2014			% Change
REVENUES:
New vehicle retail sales	$	1,272,198		$	1,199,736		6.0
Used vehicle retail sales	552,722			497,814			11.0
Used vehicle wholesale sales	66,731			72,359			(7.8	)
Total used	619,453			570,173			8.6
Parts and service	255,710			239,943			6.6
Finance and insurance	96,952			87,504			10.8
Total	$	2,244,313		$	2,097,356		7.0
GROSS MARGIN %:
New vehicle retail sales	4.7			5.0
Used vehicle retail sales	7.2			7.5
Used vehicle wholesale sales	(2.6		)	(1.8		)
Total used	6.1			6.3
Parts and service	55.1			53.7
Finance and insurance	100.0			100.0
Total	14.9			14.9
GROSS PROFIT:
New vehicle retail sales	$	59,341		$	59,963		(1.0	)
Used vehicle retail sales	39,733			37,492			6.0
Used vehicle wholesale sales	(1,745		)	(1,305		)	33.7
Total used	37,988			36,187			5.0
Parts and service	141,020			128,879			9.4
Finance and insurance	96,952			87,504			10.8
Total	$	335,301		$	312,533		7.3
UNITS SOLD:
Retail new vehicles sold	37,132			35,567			4.4
Retail used vehicles sold	26,756			24,261			10.3
Wholesale used vehicles sold	11,224			11,645			(3.6	)
Total used	37,980			35,906			5.8
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	34,261		$	33,732		1.6
Used vehicle retail	$	20,658		$	20,519		0.7
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,598		$	1,686		(5.2	)
Used vehicle retail sales	1,485			1,545			(3.9	)
Used vehicle wholesale sales	(155		)	(112		)	38.4
Total used	1,000			1,008			(0.8	)
Finance and insurance (per retail unit)	$	1,518		$	1,463		3.8
OTHER: ⁽²⁾
SG&A expenses	$	239,585		$	224,114		6.9
SG&A as % revenues	10.7			10.7
SG&A as % gross profit	71.5			71.7
Operating margin %	3.8			3.8



	Nine Months Ended September 30,
	2015		2014		% Change
REVENUES:
New vehicle retail sales	$	3,477,534	$	3,292,040	5.6
Used vehicle retail sales	1,549,938		1,384,939		11.9
Used vehicle wholesale sales	197,083		197,854		(0.4	)
Total used	1,747,021		1,582,793		10.4
Parts and service	735,509		689,284		6.7
Finance and insurance	269,132		243,002		10.8
Total	$	6,229,196	$	5,807,119	7.3
GROSS MARGIN %:
New vehicle retail sales	4.7		5.1
Used vehicle retail sales	7.4		8.1
Used vehicle wholesale sales	0.1		1.1
Total used	6.5		7.2
Parts and service	54.5		53.6
Finance and insurance	100.0		100.0
Total	15.2		15.4
GROSS PROFIT:
New vehicle retail sales	$	161,991	$	167,156	(3.1	)
Used vehicle retail sales	114,268		111,843		2.2
Used vehicle wholesale sales	142		2,101		(93.2	)
Total used	114,410		113,944		0.4
Parts and service	400,502		369,343		8.4
Finance and insurance	269,132		243,002		10.8
Total	$	946,035	$	893,445	5.9
UNITS SOLD:
Retail new vehicles sold	101,468		97,436		4.1
Retail used vehicles sold	75,199		68,295		10.1
Wholesale used vehicles sold	31,532		31,229		1.0
Total used	106,731		99,524		7.2
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	34,272	$	33,787	1.4
Used vehicle retail	$	20,611	$	20,279	1.6
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,596	$	1,716	(7.0	)
Used vehicle retail sales	1,520		1,638		(7.2	)
Used vehicle wholesale sales	5		67		(92.5	)
Total used	1,072		1,145		(6.4	)
Finance and insurance (per retail unit)	$	1,523	$	1,466	3.9
OTHER:⁽²⁾
SG&A expenses	$	675,873	$	640,801	5.5
SG&A as % revenues	10.9		11.0
SG&A as % gross profit	71.4		71.7
Operating margin %	3.9		3.9

⁽¹⁾ Same Store amounts include the results for the identical months in each period presented in the comparison, commencing with the first full month we owned the dealership and, in the case of dispositions, ending with the last full month we owned it. Same Store results also include the activities of our corporate office.⁽²⁾ These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.



Group 1 Automotive, Inc.
Additional Information - Same Store U.K. ⁽¹⁾
(Unaudited)
(Dollars in thousands, except per unit amounts)

	Three Months Ended September 30,
	2015			2014			% Change		Local Currency % Change
REVENUES:
New vehicle retail sales	$	151,967		$	134,858		12.7		21.0
Used vehicle retail sales	77,395			70,164			10.3		18.8
Used vehicle wholesale sales	19,303			21,110			(8.6	)	(1.4	)
Total used	96,698			91,274			5.9		14.1
Parts and service	20,728			21,272			(2.6	)	5.0
Finance and insurance	5,289			4,797			10.3		18.6
Total	$	274,682		$	252,201		8.9		17.1
GROSS MARGIN %:
New vehicle retail sales	6.3			6.9
Used vehicle retail sales	5.2			5.9
Used vehicle wholesale sales	(0.2		)	(0.8		)
Total used	4.1			4.4
Parts and service	57.4			55.2
Finance and insurance	100.0			100.0
Total	11.2			11.8
GROSS PROFIT:
New vehicle retail sales	$	9,572		$	9,303		2.9		9.9
Used vehicle retail sales	4,048			4,166			(2.8	)	4.5
Used vehicle wholesale sales	(48		)	(175		)	(72.6	)	(68.8	)
Total used	4,000			3,991			0.2		7.7
Parts and service	11,898			11,748			1.3		9.1
Finance and insurance	5,289			4,797			10.3		18.6
Total	$	30,759		$	29,839		3.1		10.7
UNITS SOLD:
Retail new vehicles sold	4,494			3,773			19.1
Retail used vehicles sold	3,153			2,649			19.0
Wholesale used vehicles sold	2,328			2,183			6.6
Total used	5,481			4,832			13.4
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	33,816		$	35,743		(5.4	)	1.5
Used vehicle retail	$	24,546		$	26,487		(7.3	)	(0.2	)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	2,130		$	2,466		(13.6	)	(7.7	)
Used vehicle retail sales	1,284			1,573			(18.4	)	(12.2	)
Used vehicle wholesale sales	(21		)	(80		)	(73.8	)	(70.7	)
Total used	730			826			(11.6	)	(5.1	)
Finance and insurance (per retail unit)	$	692		$	747		(7.4	)	(0.4	)
OTHER: ⁽²⁾
SG&A expenses	$	23,100		$	22,278		3.7		11.7
SG&A as % revenues	8.4			8.8
SG&A as % gross profit	75.1			74.7
Operating margin %	2.5			2.7



	Nine Months Ended September 30,
	2015			2014			% Change		Local Currency % Change
REVENUES:
New vehicle retail sales	$	410,135		$	397,264		3.2		12.5
Used vehicle retail sales	225,908			214,900			5.1		14.5
Used vehicle wholesale sales	60,167			62,304			(3.4	)	5.3
Total used	286,075			277,204			3.2		12.4
Parts and service	60,632			62,838			(3.5	)	5.1
Finance and insurance	15,043			13,915			8.1		17.8
Total	$	771,885		$	751,221		2.8		12.0
GROSS MARGIN %:
New vehicle retail sales	6.3			6.8
Used vehicle retail sales	5.3			5.9
Used vehicle wholesale sales	(0.3		)	—
Total used	4.1			4.6
Parts and service	56.9			55.1
Finance and insurance	100.0			100.0
Total	11.3			11.7
GROSS PROFIT:
New vehicle retail sales	$	25,708		$	26,844		(4.2	)	4.3
Used vehicle retail sales	11,868			12,684			(6.4	)	2.0
Used vehicle wholesale sales	(169		)	(5		)	3,280.0		4,130.0
Total used	11,699			12,679			(7.7	)	0.6
Parts and service	34,480			34,651			(0.5	)	8.4
Finance and insurance	15,043			13,915			8.1		17.8
Total	$	86,930		$	88,089		(1.3	)	7.5
UNITS SOLD:
Retail new vehicles sold	12,338			11,144			10.7
Retail used vehicles sold	9,302			8,108			14.7
Wholesale used vehicles sold	7,146			6,539			9.3
Total used	16,448			14,647			12.3
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	33,242		$	35,648		(6.8	)	1.6
Used vehicle retail	$	24,286		$	26,505		(8.4	)	(0.2	)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	2,084		$	2,409		(13.5	)	(5.8	)
Used vehicle retail sales	1,276			1,564			(18.4	)	(11.1	)
Used vehicle wholesale sales	(24		)	(1		)	2,300.0		3,770.7
Total used	711			866			(17.9	)	(10.4	)
Finance and insurance (per retail unit)	$	695		$	723		(3.9	)	4.8
OTHER:⁽²⁾
SG&A expenses	$	66,414		$	67,064		(1.0	)	7.9
SG&A as % revenues	8.6			8.9
SG&A as % gross profit	76.4			76.1
Operating margin %	2.4			2.5

⁽²⁾ These amounts have been adjusted to exclude the impact of certain items to provide additional information regarding the performance of our operations and improve period-to-period comparability. Refer to our Reconciliation of Certain Non-GAAP Financial Measures for a description of the aforementioned adjustments.



Group 1 Automotive, Inc.
Additional Information - Same Store Brazil ⁽¹⁾
(Unaudited)
(Dollars in thousands, except per unit amounts)

	Three Months Ended September 30,
	2015		2014		% Change		Local Currency % Change
REVENUES:
New vehicle retail sales	$	90,002	$	129,007	(30.2	)	7.4
Used vehicle retail sales	20,342		27,499		(26.0	)	14.4
Used vehicle wholesale sales	1,463		3,159		(53.7	)	(30.4	)
Total used	21,805		30,658		(28.9	)	9.7
Parts and service	12,193		18,163		(32.9	)	3.7
Finance and insurance	1,594		2,857		(44.2	)	(12.4	)
Total	$	125,594	$	180,685	(30.5	)	7.1
GROSS MARGIN %:
New vehicle retail sales	6.4		6.4
Used vehicle retail sales	4.4		6.3
Used vehicle wholesale sales	6.4		7.3
Total used	4.5		6.4
Parts and service	41.7		43.1
Finance and insurance	100.0		100.0
Total	10.7		11.6
GROSS PROFIT:
New vehicle retail sales	$	5,728	$	8,257	(30.6	)	6.2
Used vehicle retail sales	889		1,721		(48.3	)	(20.0	)
Used vehicle wholesale sales	93		231		(59.7	)	(39.8	)
Total used	982		1,952		(49.7	)	(22.4	)
Parts and service	5,079		7,825		(35.1	)	0.2
Finance and insurance	1,594		2,857		(44.2	)	(12.4	)
Total	$	13,383	$	20,891	(35.9	)	(1.3	)
UNITS SOLD:
Retail new vehicles sold	3,511		3,465		1.3
Retail used vehicles sold	1,228		1,065		15.3
Wholesale used vehicles sold	401		454		(11.7	)
Total used	1,629		1,519		7.2
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	25,634	$	37,231	(31.1	)	6.0
Used vehicle retail	$	16,565	$	25,821	(35.8	)	(0.8	)
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,631	$	2,383	(31.6	)	4.8
Used vehicle retail sales	724		1,616		(55.2	)	(30.6	)
Used vehicle wholesale sales	232		509		(54.4	)	(31.9	)
Total used	603		1,285		(53.1	)	(27.6	)
Finance and insurance (per retail unit)	$	336	$	631	(46.8	)	(16.2	)
OTHER: ⁽²⁾
SG&A expenses	$	11,911	$	17,277	(31.1	)	6.3
SG&A as % revenues	9.5		9.6
SG&A as % gross profit	89.0		82.7
Operating margin %	0.9		1.8



	Nine Months Ended September 30,
	2015		2014		% Change		Local Currency % Change
REVENUES:
New vehicle retail sales	$	271,960	$	380,047	(28.4	)	(1.7	)
Used vehicle retail sales	60,876		82,247		(26.0	)	1.4
Used vehicle wholesale sales	6,437		11,142		(42.2	)	(23.4	)
Total used	67,313		93,389		(27.9	)	(1.6	)
Parts and service	39,527		50,825		(22.2	)	6.7
Finance and insurance	5,172		7,425		(30.3	)	(4.1	)
Total	$	383,972	$	531,686	(27.8	)	(0.9	)
GROSS MARGIN %:
New vehicle retail sales	6.7		6.2
Used vehicle retail sales	4.4		6.2
Used vehicle wholesale sales	7.2		7.6
Total used	4.7		6.4
Parts and service	42.8		43.9
Finance and insurance	100.0		100.0
Total	11.3		11.2
GROSS PROFIT:
New vehicle retail sales	$	18,242	$	23,647	(22.9	)	5.7
Used vehicle retail sales	2,691		5,088		(47.1	)	(27.8	)
Used vehicle wholesale sales	463		843		(45.1	)	(27.8	)
Total used	3,154		5,931		(46.8	)	(27.8	)
Parts and service	16,908		22,292		(24.2	)	3.7
Finance and insurance	5,172		7,425		(30.3	)	(4.1	)
Total	$	43,476	$	59,295	(26.7	)	0.4
UNITS SOLD:
Retail new vehicles sold	9,874		10,746		(8.1	)
Retail used vehicles sold	3,379		3,523		(4.1	)
Wholesale used vehicles sold	1,265		1,443		(12.3	)
Total used	4,644		4,966		(6.5	)
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	27,543	$	35,366	(22.1	)	7.0
Used vehicle retail	$	18,016	$	23,346	(22.8	)	5.7
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,847	$	2,201	(16.1	)	15.1
Used vehicle retail sales	796		1,444		(44.9	)	(24.7	)
Used vehicle wholesale sales	366		584		(37.3	)	(17.6	)
Total used	679		1,194		(43.1	)	(22.8	)
Finance and insurance (per retail unit)	$	390	$	520	(25.0	)	3.2
OTHER:⁽²⁾
SG&A expenses	$	39,429	$	52,736	(25.2	)	2.3
SG&A as % revenues	10.3		9.9
SG&A as % gross profit	90.7		88.9
Operating margin %	0.7		1.0



Group 1 Automotive, Inc.
Additional Information - Same Store Consolidated ⁽¹⁾
(Unaudited)
(Dollars in thousands, except per unit amounts)

	Three Months Ended September 30,
	2015			2014			% Change		Local Currency % Change
REVENUES:
New vehicle retail sales	$	1,514,167		$	1,463,601		3.5		7.5
Used vehicle retail sales	650,459			595,477			9.2		12.1
Used vehicle wholesale sales	87,497			96,628			(9.4	)	(7.1	)
Total used	737,956			692,105			6.6		9.4
Parts and service	288,631			279,378			3.3		6.3
Finance and insurance	103,835			95,158			9.1		10.5
Total	$	2,644,589		$	2,530,242		4.5		8.0
GROSS MARGIN %:
New vehicle retail sales	4.9			5.3
Used vehicle retail sales	6.9			7.3
Used vehicle wholesale sales	(1.9		)	(1.3		)
Total used	5.8			6.1
Parts and service	54.7			53.1
Finance and insurance	100.0			100.0
Total	14.3			14.4
GROSS PROFIT:
New vehicle retail sales	$	74,641		$	77,523		(3.7	)	1.0
Used vehicle retail sales	44,670			43,379			3.0		4.8
Used vehicle wholesale sales	(1,700		)	(1,249		)	36.1		32.9
Total used	42,970			42,130			2.0		4.0
Parts and service	157,997			148,452			6.4		8.9
Finance and insurance	103,835			95,158			9.1		10.5
Total	$	379,443		$	363,263		4.5		7.1
UNITS SOLD:
Retail new vehicles sold	45,137			42,805			5.4
Retail used vehicles sold	31,137			27,975			11.3
Wholesale used vehicles sold	13,953			14,282			(2.3	)
Total used	45,090			42,257			6.7
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	33,546		$	34,192		(1.9	)	2.0
Used vehicle retail	$	20,890		$	21,286		(1.9	)	0.7
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,654		$	1,811		(8.7	)	(4.2	)
Used vehicle retail sales	1,435			1,551			(7.5	)	(5.8	)
Used vehicle wholesale sales	(122		)	(87		)	40.2		36.1
Total used	953			997			(4.4	)	(2.6	)
Finance and insurance (per retail unit)	$	1,361		$	1,344		1.3		2.5
OTHER: ⁽²⁾
SG&A expenses	$	274,596		$	263,669		4.1		7.3
SG&A as % revenues	10.4			10.4
SG&A as % gross profit	72.4			72.6
Operating margin %	3.5			3.5



	Nine Months Ended September 30,
	2015		2014		% Change		Local Currency % Change
REVENUES:
New vehicle retail sales	$	4,159,629	$	4,069,351	2.2		5.6
Used vehicle retail sales	1,836,722		1,682,086		9.2		11.7
Used vehicle wholesale sales	263,687		271,300		(2.8	)	—
Total used	2,100,409		1,953,386		7.5		10.1
Parts and service	835,668		802,947		4.1		6.6
Finance and insurance	289,347		264,342		9.5		10.7
Total	$	7,385,053	$	7,090,026	4.2		7.1
GROSS MARGIN %:
New vehicle retail sales	5.0		5.3
Used vehicle retail sales	7.0		7.7
Used vehicle wholesale sales	0.2		1.1
Total used	6.2		6.8
Parts and service	54.1		53.1
Finance and insurance	100.0		100.0
Total	14.6		14.7
GROSS PROFIT:
New vehicle retail sales	$	205,941	$	217,647	(5.4	)	(1.2	)
Used vehicle retail sales	128,827		129,615		(0.6	)	1.0
Used vehicle wholesale sales	436		2,939		(85.2	)	(80.6	)
Total used	129,263		132,554		(2.5	)	(0.8	)
Parts and service	451,890		426,286		6.0		8.2
Finance and insurance	289,347		264,342		9.5		10.7
Total	$	1,076,441	$	1,040,829	3.4		5.7
UNITS SOLD:
Retail new vehicles sold	123,680		119,326		3.6
Retail used vehicles sold	87,880		79,926		10.0
Wholesale used vehicles sold	39,943		39,211		1.9
Total used	127,823		119,137		7.3
AVERAGE RETAIL SALES PRICE:
New vehicle retail	$	33,632	$	34,103	(1.4	)	1.9
Used vehicle retail	$	20,900	$	21,046	(0.7	)	1.6
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,665	$	1,824	(8.7	)	(4.7	)
Used vehicle retail sales	1,466		1,622		(9.6	)	(8.2	)
Used vehicle wholesale sales	11		75		(85.3	)	(81.0	)
Total used	1,011		1,113		(9.2	)	(7.6	)
Finance and insurance (per retail unit)	$	1,368	$	1,327	3.1		4.3
OTHER: ⁽²⁾
SG&A expenses	$	781,716	$	760,602	2.8		5.5
SG&A as % revenues	10.6		10.7
SG&A as % gross profit	72.6		73.1
Operating margin %	3.5		3.5



Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - U.S.
(Unaudited)
(Dollars in thousands)

		Three Months Ended September 30,
		2015		2014			% Change
SG&A RECONCILIATION:
	As reported	$	248,771	$	221,645		12.2
	Pre-tax adjustments:
	Catastrophic events	—		(1,099		)
	Gain (loss) on real estate and dealership transactions	—		14,303
	Adjusted SG&A ⁽¹⁾	$	248,771	$	234,849		5.9
SG&A AS % REVENUES:
	Unadjusted	10.6		10.2
	Adjusted ⁽¹⁾	10.6		10.8
SG&A AS % GROSS PROFIT:
	Unadjusted	71.4		68.8
	Adjusted ⁽¹⁾	71.4		72.9
OPERATING MARGIN %:
	Unadjusted	3.8		4.0
	Adjusted ^(1),(2)	3.8		3.6
PRETAX MARGIN %:
	Unadjusted	2.9		2.0
	Adjusted ^(1),(3)	2.9		2.6
SAME STORE SG&A RECONCILIATION:
	As reported	$	239,585	$	225,236		6.4
	Pre-tax adjustments:
	Catastrophic events	—		(1,099		)
	Gain (loss) on real estate and dealership transactions	—		(23		)
	Adjusted Same Store SG&A ⁽¹⁾	$	239,585	$	224,114		6.9
SAME STORE SG&A AS % REVENUES:
	Unadjusted	10.7		10.7
	Adjusted ⁽¹⁾	10.7		10.7
SAME STORE SG&A AS % GROSS PROFIT:
	Unadjusted	71.5		72.1
	Adjusted ⁽¹⁾	71.5		71.7
SAME STORE OPERATING MARGIN %:
	Unadjusted	3.8		3.7
	Adjusted ^(1),(4)	3.8		3.8



		Nine Months Ended September 30,
		2015			2014			% Change
SG&A RECONCILIATION:
	As reported	$	718,607		$	665,547		8.0
	Pre-tax adjustments:
	Catastrophic events	(951		)	(2,775		)
	Gain (loss) on real estate and dealership transactions	1,052			14,812
	Legal settlements	(1,000		)	(442		)
	Adjusted SG&A ⁽¹⁾	$	717,708		$	677,142		6.0
SG&A AS % REVENUES:
	Unadjusted	10.8			11.0
	Adjusted ⁽¹⁾	10.8			11.2
SG&A AS % GROSS PROFIT:
	Unadjusted	71.5			71.7
	Adjusted ⁽¹⁾	71.4			72.9
OPERATING MARGIN %:
	Unadjusted	3.8			3.8
	Adjusted ^(1),(2)	3.9			3.7
PRETAX MARGIN %:
	Unadjusted	2.9			2.0
	Adjusted ^(1),(3)	2.9			2.7
SAME STORE SG&A RECONCILIATION:
	As reported	$	678,188		$	644,041		5.3
	Pre-tax adjustments:
	Catastrophic events	(951		)	(2,775		)
	Gain (loss) on real estate and dealership transactions	(364		)	(23		)
	Legal settlements	(1,000		)	(442		)
	Adjusted Same Store SG&A ⁽¹⁾	$	675,873		$	640,801		5.5
SAME STORE SG&A AS % REVENUES:
	Unadjusted	10.9			11.1
	Adjusted ⁽¹⁾	10.9			11.0
SAME STORE SG&A AS % GROSS PROFIT:
	Unadjusted	71.7			72.1
	Adjusted ⁽¹⁾	71.4			71.7
SAME STORE OPERATING MARGIN %:
	Unadjusted	3.8			3.8
	Adjusted ^(1),(4)	3.9			3.9

(1)	We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items. These adjusted measures are not measures of financial performance under GAAP. As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures. We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations.
(2)	Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $288 and $786 for the three and nine months ended September 30, 2015, respectively, and $4,252 and $5,973 for the three and nine months ended September 30, 2014, respectively.
(3)	Excludes the impact of SG&A reconciling items above, loss on redemption of long-term debt of $22,790 and $46,403 for the three and nine months ended September 30, 2014, respectively, as well as non-cash asset impairment charges of $288 and $786 for the three and nine months ended September 30, 2015 and $4,252 and $5,973 for the three and nine months ended September 30, 2014, respectively.
(4)	Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $288 and $786 for the three and nine months ended September 30, 2015, respectively, and $293 and $2,014 for the three and nine months ended September 30, 2014, respectively.



Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - U.K.
(Unaudited)
(Dollars in thousands)

		Three Months Ended September 30,
		2015	2014	% Change
OPERATING MARGIN %:
	Unadjusted	2.1	2.7
	Adjusted ^(1),(3)	2.2	2.7
PRETAX MARGIN %:
	Unadjusted	1.6	2.3
	Adjusted ^(1),(3)	1.7	2.3

SAME STORE OPERATING MARGIN %:
	Unadjusted	2.4	2.7
	Adjusted ^(1),(3)	2.5	2.7



		Nine Months Ended September 30,
		2015			2014		% Change
SG&A RECONCILIATION:
	As reported	$	81,528		$	67,063	21.6
	Pre-tax adjustments:
	Severance costs	(208		)	—
	Adjusted SG&A ⁽¹⁾	$	81,320		$	67,063	21.3
SG&A AS % REVENUES:
	Unadjusted	8.7			8.9
	Adjusted ⁽¹⁾	8.7			8.9
SG&A AS % GROSS PROFIT:
	Unadjusted	78.1			76.1
	Adjusted ⁽¹⁾	77.9			76.1
OPERATING MARGIN %:
	Unadjusted	2.1			2.5
	Adjusted ^(1),(2)	2.1			2.5
PRETAX MARGIN %:
	Unadjusted	1.6			2.1
	Adjusted ^(1),(2)	1.7			2.1

SAME STORE OPERATING MARGIN %:
	Unadjusted	2.3			2.5
	Adjusted ^(1),(3)	2.4			2.5

(1)	We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items. These adjusted measures are not measures of financial performance under GAAP. As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures. We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations.
(2)	Excludes the impact of SG&A reconciling item above, as well as non-cash asset impairment charges of $333 for the three and nine months ended September 30, 2015.
(3)	Excludes the impact of non-cash asset impairment charges of $333 for the three and nine months ended September 30, 2015.



Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - Brazil
(Unaudited)
(Dollars in thousands)

		Three Months Ended September 30,
		2015		2014			% Change
SG&A RECONCILIATION:
	As reported	$	12,117	$	20,313		(40.3	)
	Pre-tax adjustments:
	Severance costs	—		(393		)
	Adjusted SG&A ⁽¹⁾	$	12,117	$	19,920		(39.2	)
SG&A AS % REVENUES:
	Unadjusted	9.4		10.2
	Adjusted ⁽¹⁾	9.4		10.0
SG&A AS % GROSS PROFIT:
	Unadjusted	87.8		88.6
	Adjusted ⁽¹⁾	87.8		86.9
OPERATING MARGIN %
	Unadjusted	0.8		(1.6		)
	Adjusted ^(1),(2)	1.0		1.2
PRETAX MARGIN %:
	Unadjusted	0.4		(2.6		)
	Adjusted ^(1),(2)	0.6		0.2
SAME STORE SG&A RECONCILIATION:
	As reported	$	11,911	$	17,566		(32.2	)
	Pre-tax adjustments:
	Severance costs	—		(289		)
	Adjusted Same Store SG&A ⁽¹⁾	$	11,911	$	17,277		(31.1	)
SAME STORE SG&A AS % REVENUES:
	Unadjusted	9.5		9.7
	Adjusted ⁽¹⁾	9.5		9.6
SAME STORE SG&A AS % GROSS PROFIT:
	Unadjusted	89.0		84.1
	Adjusted ⁽¹⁾	89.0		82.7
SAME STORE OPERATING MARGIN %:
	Unadjusted	0.7		1.6
	Adjusted ^(1),(3)	0.9		1.8



		Nine Months Ended September 30,
		2015			2014			% Change
SG&A RECONCILIATION:
	As reported	$	40,915		$	61,151		(33.1	)
	Pre-tax adjustments:
	Severance costs	—			(393		)
	Foreign transaction tax	—			(416		)
	Adjusted SG&A ⁽¹⁾	$	40,915		$	60,342		(32.2	)
SG&A AS % REVENUES:
	Unadjusted	10.4			10.6
	Adjusted ⁽¹⁾	10.4			10.5
SG&A AS % GROSS PROFIT:
	Unadjusted	91.9			93.4
	Adjusted ⁽¹⁾	91.9			92.2
OPERATING MARGIN %:
	Unadjusted	0.3			(0.4		)
	Adjusted ^(1),(2)	0.6			0.6
PRETAX MARGIN %:
	Unadjusted	(0.2		)	(1.4		)
	Adjusted ^(1),(2)	—			(0.4		)
SAME STORE SG&A RECONCILIATION:
	As reported	$	39,429		$	53,441		(26.2	)
	Pre-tax adjustments:
	Severance costs	—			(289		)
	Foreign transaction tax	—			(416		)
	Adjusted Same Store SG&A ⁽¹⁾	$	39,429		$	52,736		(25.2	)
SAME STORE SG&A AS % REVENUES:
	Unadjusted	10.3			10.1
	Adjusted ⁽¹⁾	10.3			9.9
SAME STORE SG&A AS % GROSS PROFIT:
	Unadjusted	90.7			90.1
	Adjusted ⁽¹⁾	90.7			88.9
SAME STORE OPERATING MARGIN %:
	Unadjusted	0.6			0.8
	Adjusted ^(1),(3)	0.7			1.0

(1)	We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items. These adjusted measures are not measures of financial performance under GAAP. As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures. We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations.
(2)	Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges of $298 and $839 for the three and nine months ended September 30, 2015, respectively, and $5,121 for the three and nine months ended September 30, 2014.
(3)	Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $298 for the three and nine months ended September 30, 2015.



Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures - Consolidated
(Unaudited)
(Dollars in thousands, except per share amounts)
		Three Months Ended September 30,
		2015		2014			% Change
NET INCOME RECONCILIATION:
	As reported	$	45,261	$	26,162		73.0
	After-tax adjustments:
	Catastrophic events⁽⁵⁾	—		671
	(Gain) loss on real estate and dealership transactions⁽⁶⁾	—		(8,572		)
	Severance costs⁽⁷⁾	—		388
	Non-cash asset impairment⁽¹⁰⁾	776		6,559
	Loss on extinguishment of long-term debt⁽¹¹⁾	—		17,934
	Non-deductible goodwill	—		(3,358		)
	Adjusted net income ⁽¹⁾	$	46,037	$	39,784		15.7
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION:
	Adjusted net income ⁽¹⁾	$	46,037	$	39,784		15.7
	Less: Adjusted earnings allocated to participating securities	1,759		1,520			15.7
	Adjusted net income available to diluted common shares ⁽¹⁾	$	44,278	$	38,264		15.7
DILUTED INCOME PER COMMON SHARE RECONCILIATION:
	As reported	$	1.88	$	1.03		82.5
	After-tax adjustments:
	Catastrophic events	—		0.03
	Gain (loss) on real estate and dealership transactions	—		(0.34		)
	Severance costs	—		0.01
	Non-cash asset impairment	0.03		0.26
	Loss on extinguishment of long-term debt	—		0.71
	Non-deductible goodwill	—		(0.13		)
	Adjusted diluted income per share ⁽¹⁾	$	1.91	$	1.57		21.7
SG&A RECONCILIATION:
	As reported	$	289,012	$	264,233		9.4
	Pre-tax adjustments:
	Catastrophic events	—		(1,099		)
	Gain (loss) on real estate and dealership transactions	—		14,303
	Severance costs	—		(393		)
	Adjusted SG&A ⁽¹⁾	$	289,012	$	277,044		4.3
SG&A AS % REVENUES:
	Unadjusted	10.3		10.1
	Adjusted ⁽¹⁾	10.3		10.5
SG&A AS % GROSS PROFIT:
	Unadjusted	72.5		70.5
	Adjusted ⁽¹⁾	72.5		73.9
OPERATING MARGIN %:
	Unadjusted	3.5		3.4
	Adjusted ^(1),(2)	3.5		3.3



PRETAX MARGIN %:
	Unadjusted	2.6		1.7
	Adjusted ^(1),(3)	2.6		2.4
SAME STORE SG&A RECONCILIATION:
	As reported	$	274,596	$	265,080		3.6
	Pre-tax adjustments:
	Catastrophic events	—		(1,099		)
	Gain (loss) on real estate and dealership transactions	—		(23		)
	Severance costs	—		(289		)
	Adjusted Same Store SG&A ⁽¹⁾	$	274,596	$	263,669		4.1
SAME STORE SG&A AS % REVENUES:
	Unadjusted	10.4		10.5
	Adjusted⁽¹⁾	10.4		10.4
SAME STORE SG&A AS % GROSS PROFIT:
	Unadjusted	72.4		73.0
	Adjusted⁽¹⁾	72.4		72.6
SAME STORE OPERATING MARGIN %:
	Unadjusted	3.5		3.5
	Adjusted^(1),(4)	3.5		3.5



		Nine Months Ended September 30,
		2015			2014			% Change
NET INCOME RECONCILIATION:
	As reported	$	127,385		$	74,327		71.4
	After-tax adjustments:
	Catastrophic events⁽⁵⁾	593			1,710
	(Gain) loss on real estate and dealership transactions⁽⁶⁾	(601		)	(8,887		)
	Severance costs⁽⁷⁾	167			388
	Legal settlements ⁽⁸⁾	610			274
	Foreign transaction tax⁽⁹⁾	—			274
	Non-cash asset impairment⁽¹⁰⁾	1,624			7,626
	Loss on extinguishment of long-term debt⁽¹¹⁾	—			38,711
	Non-deductible goodwill	—			(3,358		)
	Adjusted net income ⁽¹⁾	$	129,778		$	111,065		16.8
ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTED COMMON SHARES RECONCILIATION:
	Adjusted net income ⁽¹⁾	$	129,778		$	111,065		16.8
	Less: Adjusted earnings allocated to participating securities	4,997			4,126			21.1
	Adjusted net income available to diluted common shares ⁽¹⁾	$	124,781		$	106,939		16.7
DILUTED INCOME PER COMMON SHARE RECONCILIATION:
	As reported	$	5.26		$	2.82		86.5
	After-tax adjustments:
	Catastrophic events	0.02			0.07
	Gain (loss) on real estate and dealership transactions	(0.02		)	(0.33		)
	Severance costs	0.01			0.01
	Legal settlements	0.02			0.01
	Foreign transaction tax	—			0.01
	Non-cash asset impairment	0.07			0.29
	Loss on extinguishment of long-term debt	—			1.47
	Non-deductible goodwill	—			(0.13		)
	Adjusted diluted income per share ⁽¹⁾	$	5.36		$	4.22		27.0
SG&A RECONCILIATION:
	As reported	$	841,050		$	793,761		6.0
	Pre-tax adjustments:
	Catastrophic events	(951		)	(2,775		)
	Gain (loss) on real estate and dealership transactions	1,053			14,812
	Severance costs	(208		)	(393		)
	Legal settlements	(1,000		)	(442		)
	Foreign transaction tax	—			(416		)
	Adjusted SG&A ⁽¹⁾	$	839,944		$	804,547		4.4
SG&A AS % REVENUES:
	Unadjusted	10.6			10.7
	Adjusted ⁽¹⁾	10.6			10.9
SG&A AS % GROSS PROFIT:
	Unadjusted	72.9			73.4
	Adjusted ⁽¹⁾	72.8			74.4



OPERATING MARGIN %:
	Unadjusted	3.5			3.3
	Adjusted ^(1),(2)	3.5			3.3
PRETAX MARGIN %:
	Unadjusted	2.6			1.8
	Adjusted ^(1),(3)	2.6			2.4
SAME STORE SG&A RECONCILIATION:
	As reported	$	784,031		$	764,546		2.5
	Pre-tax adjustments:
	Catastrophic events	(951		)	(2,774		)
	Gain (loss) on real estate and dealership transactions	(364		)	(23		)
	Severance costs	—			(289		)
	Legal settlements	(1,000		)	(442		)
	Foreign transaction tax	—			(416		)
	Adjusted Same Store SG&A ⁽¹⁾	$	781,716		$	760,602		2.8
SAME STORE SG&A AS % REVENUES:
	Unadjusted	10.6			10.8
	Adjusted⁽¹⁾	10.6			10.7
SAME STORE SG&A AS % GROSS PROFIT:
	Unadjusted	72.8			73.5
	Adjusted⁽¹⁾	72.6			73.1
SAME STORE OPERATING MARGIN %:
	Unadjusted	3.5			3.4
	Adjusted^(1),(4)	3.5			3.5

(1)	We have included certain non-GAAP financial measures as defined under SEC rules, which exclude certain items. These adjusted measures are not measures of financial performance under GAAP. As required by SEC rules, we provide reconciliations of these adjusted measures to the most directly comparable GAAP measures. We believe that these adjusted financial measures are relevant and useful to investors because they improve the transparency of our disclosure, provide a meaningful presentation of results from our core business operations and improve period-to-period comparability of our results from our core business operations.
(2)	Excludes the impact of SG&A reconciling items above, as well as non-cash asset impairment charges for all periods.
(3)	Excludes the impact of SG&A reconciling items above, non-cash asset impairment charges for all periods, as well as loss on redemption of long-term debt of $22,790 and $46,403 for the three and nine months ended September 30, 2014, respectively.
(4)	Excludes the impact of Same Store SG&A reconciling items above, as well as non-cash asset impairment charges of $916 and $1,418 for the three and nine months ended September 30, 2015, respectively, and $293 and $2,014 for the three and nine months ended September 30, 2014, respectively.
(5)	Adjustment is net of tax benefit of $359 for the nine months ended September 30, 2015, and $428 and $1,065 for the three and nine months ended September 30, 2014, respectively, calculated utilizing the applicable federal and state tax rates for adjustment.
(6)	Adjustment is net of tax provision of $452 for the nine months ended September 30, 2015, and $5,731 and $5,925 for the three and nine months ended September 30, 2014, respectively, calculated utilizing the applicable federal and state tax rates for adjustment.
(7)	Adjustment is net of tax benefit of $42 for the nine months ended September 30, 2015, and $5 for the three and nine months ended September 30, 2014, calculated utilizing the applicable federal and state tax rates for adjustment.
(8)	Adjustment is net of tax benefit of $390 for the nine months ended September 30, 2015, and $168 for the nine months ended September 30, 2014, calculated utilizing the applicable federal and state tax rates for adjustment.
(9)	Adjustment is net of tax benefit of $141 for the nine months ended September 30, 2014, calculated utilizing the applicable federal and state tax rates for adjustment.
(10)	Adjustment is net of tax benefit of $143 and $334 for the three and nine months ended September 30, 2015, respectively, and $2,815 and $3,469 for the three and nine months ended September 30, 2014, respectively, calculated utilizing the applicable federal and state tax rates for adjustment.
(11)	Adjustment is net of tax benefit of $4,856 and $7,692 for the three and nine months ended September 30, 2014, respectively, calculated utilizing the applicable federal and state tax rates for adjustment.

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GROUP 1 AUTOMOTIVE INC Reports