Document

“Our team delivered another record quarter featuring substantial revenue and profit growth. Our consolidated vehicle and aftersales revenue growth for the quarter was well over 20% and our consolidated aftersales gross profit growth exceeded 25%. Our capital allocation also continues to fuel our strong performance with acquisitions in both of our operating markets during the quarter, bringing total revenues added to $3.1 billion over the past 18 months, and our share repurchase level is now over 20% of our total outstanding shares over the past 12 months,” said Earl J. Hesterberg, Group 1’s Chief Executive Officer.

Current quarter adjusted diluted earnings per common share from continuing operations (a non-GAAP measure) was $12.00, a 27.1% increase over adjusted diluted earnings per common share from continuing operations of $9.44 for the prior year quarter. Current quarter adjusted net income from continuing operations and adjusted diluted earnings per share from continuing operations excluded $10.8 million of after-tax gains on disposition activities. Current quarter and prior year quarter adjusted diluted earnings per common share from continuing operations excludes adjusted diluted earnings per common share from discontinued operations of $(0.09) and $0.18, respectively.

Third Quarter 2022

Key Performance Metrics

(year-over-year comparable period basis)

Consolidated

Same Store

(a non-GAAP measure)

Reported:

3Q22

Change

3Q22

Change

Total revenues

$4.2B

+22.0%

$3.5B

+3.6%

Total gross profit (“GP”)

$752.6M

+17.8%

$621.2M

(0.9)%

NV units sold

39,237

+17.6%

32,249

(1.5)%

NV GP per retail unit (“PRU”)

$5,267

+8.8%

$5,078

+5.1%

Used vehicle (“UV”) retail units sold

48,427

+13.9%

41,684

(0.4)%

UV retail GP PRU

$1,571

(31.2)%

$1,536

(33.2)%

Parts & service (“P&S”) GP

$285.1M

+25.7%

$239.0M

+7.6%

P&S Gross Margin

55.3%

+0.9%

54.5%

+0.1%

Finance and Insurance (“F&I”) revenues

$186.3M

+27.6%

$155.6M

+8.8%

F&I GP PRU

$2,125

+10.4%

$2,105

+9.8%

Selling, General and Administrative (“SG&A”) expenses as a % of GP

59.9%

+101 bps

62.2%

+342 bps

Adjusted SG&A expenses (a non-GAAP measure) as a % of GP

61.5%

+281 bps

61.9%

+328 bps

In July 2022, the Company acquired three dealerships and a collision center in Louisiana, consisting of Mercedes-Benz, Sprinter, Land Rover, Jaguar, and Volvo franchises. This acquisition is expected to generate $110.0 million in annual revenues. In September 2022, the Company acquired a BMW/MINI dealership and a collision center in the U.K. This acquisition is expected to generate $80.0 million in annual revenues, bringing year-to-date total acquired expected annual revenues for the Company to $740.0 million. For the period January 1, 2021 to September 30, 2022, the Company has acquired total expected annual revenues of $3.2 billion.

During the current quarter, the Company repurchased 609,929 shares, representing approximately 3.6% of the Company’s current year beginning outstanding common shares, at an average price per common share of $172.84, for a total of $105.4 million. During the nine months ended September 30, 2022 (“current year”), the Company repurchased 2,047,658 shares, representing approximately 11.9% of the Company’s current year beginning outstanding common shares, at an average price per common share of $175.58, for a total of $359.5 million. As of September 30, 2022, the Company had an aggregate 15.2 million outstanding common shares and unvested restricted stock awards.

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 strategic investments, goals, plans, projections and guidance regarding our financial position, results of operations and business strategy, including the annualized revenues of recently completed acquisitions or dispositions and other benefits of such currently anticipated or recently completed acquisitions or dispositions. These forward-looking statements 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, (i) the impacts of COVID-19 and the armed conflict in Ukraine on our business and the supply chains upon which our business is dependent, (j) the impacts of continued inflation and any potential global recession, (k) our ability to maintain sufficient liquidity to operate, (l) the risk that proposed transactions will not be consummated in a timely manner, and (m) our ability to successfully integrate recent and future acquisitions. 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 Securities and Exchange Commission, 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.

In addition to evaluating the financial condition and results of our operations in accordance with U.S. GAAP, from time to time our management evaluates and analyzes results and any impact on the Company of strategic decisions and actions relating to, among other things, cost reduction, growth, profitability improvement initiatives, and other events outside of normal, or "core," business and operations, by considering alternative financial measures not prepared in accordance with U.S. GAAP. In our evaluation of results from time to time, we exclude items that do not arise directly from core operations, such as non-cash asset impairment charges, out-of-period adjustments, legal matters, gains and losses on dealership franchise or real estate transactions, and catastrophic events, such as hailstorms, hurricanes, and snow storms. Because these non-core charges and gains materially affect the Company's financial condition or results in the specific period in which they are recognized, management also evaluates, and makes resource allocation and performance evaluation decisions based on, the related non-GAAP measures excluding such items. This includes evaluating measures such as adjusted selling, general and administrative expenses, adjusted net income, adjusted diluted earnings per share, and constant currency. These adjusted measures are not measures of financial performance under U.S. GAAP, but are instead considered non-GAAP financial performance measures. Non-GAAP measures do not have definitions under U.S. GAAP and may be defined differently by, and not be comparable to similarly titled measures used by, other companies. As a result, any non-GAAP financial measures considered and evaluated by management are reviewed in conjunction with a review of the most directly comparable measures calculated in accordance with U.S. GAAP. We caution investors not to place undue reliance on such non-GAAP measures, but also to consider them with the most directly comparable U.S. GAAP measures.

In addition to using such non-GAAP measures to evaluate results in a specific period, management believes that such measures may provide more complete and consistent comparisons of operational performance on a period-over-period historical basis and a better indication of expected future trends. Our management also uses these adjusted measures in conjunction with U.S. GAAP financial measures to assess our business, including communication with our Board of Directors, investors, and industry analysts concerning financial performance. We disclose these non-GAAP measures, and the related reconciliations, because we believe investors use these metrics in evaluating longer-term period-over-period performance, and to allow investors to better understand and evaluate the information used by management to assess operating performance. The exclusion of certain expenses in the calculation of non-GAAP financial measures should not be construed as an inference that these costs are unusual or infrequent. We anticipate excluding these expenses in the future presentation of our non-GAAP financial measures.

In addition, we evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our underlying business and results of operations, consistent with how we evaluate our performance. We calculate constant currency percentages by converting our current period reported results for entities reporting in currencies other than U.S. dollars using comparative period exchange rates rather than the actual exchange rates in effect during the respective periods. The constant currency performance measures should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with U.S. GAAP. The Same Store amounts presented include the results of dealerships for the identical months in each period presented in comparison, commencing with the first full month in which the dealership was owned by us and, in the case of dispositions, ending with the last full month it was owned by us. Same Store results also include the activities of our corporate headquarters.


Group 1 Automotive, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In millions, except per share data)

	Three Months Ended September 30,
	2022			2021			Increase/(Decrease)			% Change
REVENUES:
New vehicle retail sales	$	1,883.3		$	1,513.9		$	369.5		24.4	%
Used vehicle retail sales	1,488.6			1,230.4			258.3			21.0	%
Used vehicle wholesale sales	89.6			106.0			(16.5)			(15.5)	%
Parts and service sales	515.6			416.5			99.1			23.8	%
Finance, insurance and other, net	186.3			146.0			40.3			27.6	%
Total revenues	4,163.4			3,412.8			750.6			22.0	%
COST OF SALES:
New vehicle retail sales	1,676.7			1,352.4			324.3			24.0	%
Used vehicle retail sales	1,412.6			1,133.3			279.2			24.6	%
Used vehicle wholesale sales	91.1			98.7			(7.6)			(7.7)	%
Parts and service sales	230.5			189.7			40.8			21.5	%
Total cost of sales	3,410.8			2,774.1			636.7			23.0	%
GROSS PROFIT	752.6			638.7			113.9			17.8	%
Selling, general and administrative expenses	450.9			376.3			74.7			19.8	%
Depreciation and amortization expense	21.8			19.2			2.6			13.5	%
Asset impairments	—			1.7			(1.7)			(100.0)	%
INCOME FROM OPERATIONS	279.9			241.5			38.4			15.9	%
Floorplan interest expense	6.5			4.3			2.2			50.1	%
Other interest expense, net	19.6			13.1			6.5			49.9	%
Other income	(3.4)			—			(3.4)			(100.0)	%

INCOME BEFORE INCOME TAXES	257.2			224.1			33.1			14.8	%
Provision for income taxes	60.2			51.6			8.6			16.6	%
Net income from continuing operations	197.1			172.5			24.5			14.2	%
Net loss from discontinued operations	(1.3)			(0.4)			(0.9)			216.9	%
NET INCOME	$	195.7		$	172.1		$	23.6		13.7	%
Less: Earnings allocated to participating securities	5.4			5.7			(0.3)			(5.3)	%
Net income available to diluted common shares	$	190.3		$	166.4		$	23.9		14.4	%
Diluted earnings per share from continuing operations	$	12.57		$	9.35		$	3.21		34.4	%
Diluted loss per share from discontinued operations	$	(0.09)		$	(0.02)		$	(0.06)		272.6	%
DILUTED EARNINGS PER SHARE	$	12.48		$	9.33		$	3.15		33.8	%
Weighted average dilutive common shares outstanding	15.2			17.8			(2.6)			(14.5)	%
Weighted average participating securities	0.4			0.6			(0.2)			(29.5)	%
Total weighted average shares	15.7			18.4			(2.8)			(15.0)	%
Effective tax rate on continuing operations	23.4		%	23.0		%	0.4		%


Group 1 Automotive, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In millions, except per share data)

	Nine Months Ended September 30,
	2022			2021			Increase/(Decrease)			% Change
REVENUES:
New vehicle retail sales	$	5,479.8		$	4,828.6		$	651.1		13.5	%
Used vehicle retail sales	4,353.9			3,302.3			1,051.7			31.8	%
Used vehicle wholesale sales	278.9			278.0			0.9			0.3	%
Parts and service sales	1,491.1			1,152.2			338.9			29.4	%
Finance, insurance and other, net	549.5			431.3			118.2			27.4	%
Total revenues	12,153.1			9,992.3			2,160.8			21.6	%
COST OF SALES:
New vehicle retail sales	4,861.6			4,411.4			450.2			10.2	%
Used vehicle retail sales	4,100.6			3,038.6			1,062.0			34.9	%
Used vehicle wholesale sales	276.8			257.9			18.9			7.3	%
Parts and service sales	668.5			515.0			153.5			29.8	%
Total cost of sales	9,907.4			8,222.9			1,684.5			20.5	%
GROSS PROFIT	2,245.8			1,769.5			476.3			26.9	%
Selling, general and administrative expenses	1,329.6			1,056.2			273.3			25.9	%
Depreciation and amortization expense	65.9			56.8			9.1			16.1	%
Asset impairments	0.8			1.7			(0.9)			(52.6)	%
INCOME FROM OPERATIONS	849.4			654.7			194.7			29.7	%
Floorplan interest expense	17.7			20.5			(2.8)			(13.7)	%
Other interest expense, net	55.5			39.8			15.7			39.5	%
Other income	(3.4)			—			(3.4)			(100.0)	%

INCOME BEFORE INCOME TAXES	779.6			594.4			185.2			31.2	%
Provision for income taxes	182.1			132.2			50.0			37.8	%
Net income from continuing operations	597.5			462.2			135.3			29.3	%
Net (loss) income from discontinued operations	(2.9)			2.8			(5.7)			(204.0)	%
NET INCOME	$	594.6		$	465.0		$	129.6		27.9	%
Less: Earnings allocated to participating securities	16.6			15.6			1.0			6.5	%
Net income available to diluted common shares	$	578.0		$	449.4		$	128.5		28.6	%
Diluted earnings per share from continuing operations	$	36.43		$	25.05		$	11.37		45.4	%
Diluted (loss) earnings per share from discontinued operations	$	(0.18)		$	0.15		$	(0.33)		(217.4)	%
DILUTED EARNINGS PER SHARE	$	36.25		$	25.21		$	11.04		43.8	%
Weighted average dilutive common shares outstanding	15.9			17.8			(1.9)			(10.6)	%
Weighted average participating securities	0.5			0.6			(0.2)			(26.2)	%
Total weighted average shares	16.4			18.5			(2.0)			(11.1)	%
Effective tax rate on continuing operations	23.4		%	22.2		%	1.1		%


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
United States	80.9	%	77.9	%	80.9	%	80.7	%
United Kingdom	19.1	%	22.1	%	19.1	%	19.3	%


NEW VEHICLE UNIT SALES BRAND MIX:
Toyota/Lexus	25.2	%	25.9	%	24.3	%	25.6	%
Volkswagen/Audi/Porsche/SEAT/SKODA	16.1	%	17.3	%	15.7	%	15.9	%
BMW/MINI	12.9	%	12.1	%	12.7	%	11.2	%
Ford/Lincoln	7.7	%	8.2	%	8.2	%	8.6	%
Honda/Acura	6.1	%	7.9	%	6.9	%	8.7	%
Chevrolet/GMC/Buick/Cadillac	7.0	%	6.2	%	6.5	%	6.9	%
Mercedes-Benz/Sprinter	6.2	%	4.1	%	6.2	%	4.7	%
Chrysler/Dodge/Jeep/RAM	5.2	%	3.9	%	5.1	%	4.1	%
Hyundai/Kia/Genesis	4.8	%	5.4	%	4.9	%	5.4	%
Nissan	2.9	%	5.8	%	3.6	%	5.7	%
Subaru	2.7	%	1.5	%	2.7	%	1.4	%
Jaguar/Land Rover	1.7	%	1.5	%	1.5	%	1.7	%
Mazda	1.3	%	—	%	1.2	%	—	%
Other	0.3	%	0.1	%	0.3	%	—	%
	100.0	%	100.0	%	100.0	%	100.0	%


Group 1 Automotive, Inc.
Reported Operating Data — Consolidated
(Unaudited)
(In millions, except unit data)

	Three Months Ended September 30,
	2022			2021			Increase/ (Decrease)			% Change		Currency Impact on Current Period Results		Constant Currency % Change
Revenues:
New vehicle retail sales	$	1,883.3		$	1,513.9		$	369.5		24.4	%	$	(53.8)	28.0	%
Used vehicle retail sales	1,488.6			1,230.4			258.3			21.0	%	(47.3)		24.8	%
Used vehicle wholesale sales	89.6			106.0			(16.5)			(15.5)	%	(4.9)		(11.0)	%
Total used	1,578.2			1,336.4			241.8			18.1	%	(52.2)		22.0	%
Parts and service sales	515.6			416.5			99.1			23.8	%	(10.7)		26.4	%
F&I, net	186.3			146.0			40.3			27.6	%	(2.8)		29.5	%
Total revenues	$	4,163.4		$	3,412.8		$	750.6		22.0	%	$	(119.5)	25.5	%
Gross profit:
New vehicle retail sales	$	206.7		$	161.5		$	45.2		28.0	%	$	(4.9)	31.0	%
Used vehicle retail sales	76.1			97.0			(21.0)			(21.6)	%	(2.7)		(18.9)	%
Used vehicle wholesale sales	(1.5)			7.4			(8.9)			(120.8)	%	—		(121.4)	%
Total used	74.5			104.4			(29.9)			(28.6)	%	(2.6)		(26.1)	%
Parts and service sales	285.1			226.8			58.4			25.7	%	(6.3)		28.5	%
F&I, net	186.3			146.0			40.3			27.6	%	(2.8)		29.5	%
Total gross profit	$	752.6		$	638.7		$	113.9		17.8	%	$	(16.6)	20.4	%
Gross margin:
New vehicle retail sales	11.0		%	10.7		%	0.3		%
Used vehicle retail sales	5.1		%	7.9		%	(2.8)		%
Used vehicle wholesale sales	(1.7)		%	7.0		%	(8.7)		%
Total used	4.7		%	7.8		%	(3.1)		%
Parts and service sales	55.3		%	54.4		%	0.9		%

Total gross margin	18.1		%	18.7		%	(0.6)		%
Units sold:
Retail new vehicles sold	39,237			33,365			5,872			17.6	%
Retail used vehicles sold	48,427			42,514			5,913			13.9	%
Wholesale used vehicles sold	9,456			10,960			(1,504)			(13.7)	%
Total used	57,883			53,474			4,409			8.2	%
Average sales price per unit sold:
New vehicle retail	$	47,999		$	45,373		$	2,626		5.8	%	$	(1,370)	8.8	%
Used vehicle retail	$	30,740		$	28,941		$	1,799		6.2	%	$	(977)	9.6	%
Gross profit per unit sold:
New vehicle retail sales	$	5,267		$	4,840		$	427		8.8	%	$	(125)	11.4	%
Used vehicle retail sales	$	1,571		$	2,282		$	(712)		(31.2)	%	$	(55)	(28.8)	%
Used vehicle wholesale sales	$	(162)		$	673		$	(835)		(124.1)	%	$	5	(124.8)	%
Total used	$	1,288		$	1,953		$	(665)		(34.1)	%	$	(45)	(31.7)	%
F&I PRU	$	2,125		$	1,925		$	201		10.4	%	$	(32)	12.1	%
Other:





SG&A expenses	$	450.9		$	376.3		$	74.7		19.8	%	$	(11.3)	22.9	%
Adjusted SG&A expenses (1)	$	463.1		$	375.1		$	88.1		23.5	%	$	(11.1)	26.4	%


SG&A as % gross profit	59.9		%	58.9		%	1.0		%
Adjusted SG&A as % gross profit (1)	61.5		%	58.7		%	2.8		%
Operating margin %	6.7		%	7.1		%	(0.4)		%
Adjusted operating margin % (1)	6.4		%	7.2		%	(0.7)		%
Pretax margin %	6.2		%	6.6		%	(0.4)		%
Adjusted pretax margin % (1)	5.9		%	6.6		%	(0.7)		%
Floorplan expense:
Floorplan interest expense	$	6.5		$	4.3		$	2.2		50.1	%	$	(0.2)	55.1	%
Less: Floorplan assistance (2)	13.9			12.2			1.8			14.4	%	—		14.4	%
Net floorplan expense	$	(7.4)		$	(7.8)		$	0.4				$	(0.2)
Adjusted floorplan interest expense (1)	$	6.5		$	5.2		$	1.3		24.7	%	$	(0.2)	28.8	%

(1) See the section in this release titled “Reconciliation of Certain Non-GAAP Financial Measures” for the GAAP to non-GAAP reconciliation of these figures.


Group 1 Automotive, Inc.
Reported Operating Data — Consolidated
(Unaudited)
(In millions, except unit data)

	Nine Months Ended September 30,
	2022			2021			Increase/ (Decrease)			% Change		Currency Impact on Current Period Results		Constant Currency % Change
Revenues:
New vehicle retail sales	$	5,479.8		$	4,828.6		$	651.1		13.5	%	$	(97.6)	15.5	%
Used vehicle retail sales	4,353.9			3,302.3			1,051.7			31.8	%	(91.5)		34.6	%
Used vehicle wholesale sales	278.9			278.0			0.9			0.3	%	(10.0)		3.9	%
Total used	4,632.8			3,580.3			1,052.5			29.4	%	(101.4)		32.2	%
Parts and service sales	1,491.1			1,152.2			338.9			29.4	%	(19.0)		31.1	%
F&I, net	549.5			431.3			118.2			27.4	%	(5.4)		28.7	%
Total revenues	$	12,153.1		$	9,992.3		$	2,160.8		21.6	%	$	(223.4)	23.9	%
Gross profit:
New vehicle retail sales	$	618.2		$	417.2		$	201.0		48.2	%	$	(9.0)	50.3	%
Used vehicle retail sales	253.4			263.7			(10.3)			(3.9)	%	(5.0)		(2.0)	%
Used vehicle wholesale sales	2.1			20.1			(18.0)			(89.7)	%	0.2		(90.6)	%
Total used	255.5			283.7			(28.3)			(10.0)	%	(4.8)		(8.3)	%
Parts and service sales	822.6			637.2			185.4			29.1	%	(11.3)		30.9	%
F&I, net	549.5			431.3			118.2			27.4	%	(5.4)		28.7	%
Total gross profit	$	2,245.8		$	1,769.5		$	476.3		26.9	%	$	(30.6)	28.6	%
Gross margin:
New vehicle retail sales	11.3		%	8.6		%	2.6		%
Used vehicle retail sales	5.8		%	8.0		%	(2.2)		%
Used vehicle wholesale sales	0.7		%	7.2		%	(6.5)		%
Total used	5.5		%	7.9		%	(2.4)		%
Parts and service sales	55.2		%	55.3		%	(0.1)		%

Total gross margin	18.5		%	17.7		%	0.8		%
Units sold:
Retail new vehicles sold	114,792			110,499			4,293			3.9	%
Retail used vehicles sold	141,140			124,559			16,581			13.3	%
Wholesale used vehicles sold	28,069			31,268			(3,199)			(10.2)	%
Total used	169,209			155,827			13,382			8.6	%
Average sales price per unit sold:
New vehicle retail	$	47,736		$	43,698		$	4,038		9.2	%	$	(850)	11.2	%
Used vehicle retail	$	30,848		$	26,512		$	4,337		16.4	%	$	(648)	18.8	%
Gross profit per unit sold:
New vehicle retail sales	$	5,385		$	3,776		$	1,609		42.6	%	$	(79)	44.7	%
Used vehicle retail sales	$	1,795		$	2,117		$	(322)		(15.2)	%	$	(35)	(13.5)	%
Used vehicle wholesale sales	$	73		$	642		$	(568)		(88.6)	%	$	6	(89.5)	%
Total used	$	1,510		$	1,821		$	(311)		(17.1)	%	$	(29)	(15.5)	%
F&I PRU	$	2,147		$	1,835		$	312		17.0	%	$	(21)	18.2	%
Other:





SG&A expenses	$	1,329.6		$	1,056.2		$	273.3		25.9	%	$	(20.6)	27.8	%
Adjusted SG&A expenses (1)	$	1,366.3		$	1,054.9		$	311.4		29.5	%	$	(20.4)	31.5	%


SG&A as % gross profit	59.2		%	59.7		%	(0.5)		%
Adjusted SG&A as % gross profit (1)	60.8		%	59.6		%	1.2		%
Operating margin %	7.0		%	6.6		%	0.4		%
Adjusted operating margin % (1)	6.7		%	6.6		%	0.1		%
Pretax margin %	6.4		%	5.9		%	0.5		%
Adjusted pretax margin % (1)	6.1		%	6.0		%	0.1		%
Floorplan expense:
Floorplan interest expense	$	17.7		$	20.5		$	(2.8)		(13.7)	%	$	(0.4)	(11.7)	%
Less: Floorplan assistance (2)	42.1			40.6			1.5			3.6	%	—		3.6	%
Net floorplan expense	$	(24.4)		$	(20.1)		$	(4.3)				$	(0.4)
Adjusted floorplan interest expense (1)	$	17.7		$	19.1		$	(1.4)		(7.2)	%	$	(0.4)	(5.0)	%


Group 1 Automotive, Inc.
Reported Operating Data — U.S.
(Unaudited)
(In millions, except unit data)

	Three Months Ended September 30,
	2022			2021			Increase/(Decrease)			% Change
Revenues:
New vehicle retail sales	$	1,586.9		$	1,208.5		$	378.4		31.3	%
Used vehicle retail sales	1,212.1			902.3			309.8			34.3	%
Used vehicle wholesale sales	61.3			68.0			(6.7)			(9.8)	%
Total used	1,273.4			970.3			303.1			31.2	%
Parts and service sales	453.8			353.1			100.7			28.5	%
F&I, net	170.2			130.5			39.8			30.5	%
Total revenues	$	3,484.3		$	2,662.4		$	821.9		30.9	%
Gross profit:
New vehicle retail sales	$	180.7		$	140.0		$	40.7		29.1	%
Used vehicle retail sales	60.6			73.1			(12.5)			(17.1)	%
Used vehicle wholesale sales	(1.3)			3.2			(4.5)			(139.3)	%
Total used	59.3			76.3			(17.0)			(22.2)	%
Parts and service sales	249.0			188.2			60.7			32.3	%
F&I, net	170.2			130.5			39.8			30.5	%
Total gross profit	$	659.3		$	535.0		$	124.3		23.2	%
Gross margin:
New vehicle retail sales	11.4		%	11.6		%	(0.2)		%
Used vehicle retail sales	5.0		%	8.1		%	(3.1)		%
Used vehicle wholesale sales	(2.1)		%	4.8		%	(6.8)		%
Total used	4.7		%	7.9		%	(3.2)		%
Parts and service sales	54.9		%	53.3		%	1.6		%

Total gross margin	18.9		%	20.1		%	(1.2)		%
Units sold:
Retail new vehicles sold	31,745			25,984			5,761			22.2	%
Retail used vehicles sold	38,172			31,704			6,468			20.4	%
Wholesale used vehicles sold	6,453			6,758			(305)			(4.5)	%
Total used	44,625			38,462			6,163			16.0	%
Average sales price per unit sold:
New vehicle retail	$	49,990		$	46,510		$	3,480		7.5	%
Used vehicle retail	$	31,754		$	28,461		$	3,293		11.6	%
Gross profit per unit sold:
New vehicle retail sales	$	5,693		$	5,388		$	304		5.7	%
Used vehicle retail sales	$	1,588		$	2,305		$	(717)		(31.1)	%
Used vehicle wholesale sales	$	(197)		$	478		$	(675)		(141.2)	%
Total used	$	1,330		$	1,984		$	(654)		(33.0)	%
F&I PRU	$	2,435		$	2,261		$	174		7.7	%
Other:





SG&A expenses	$	385.8		$	308.7		$	77.1		25.0	%
Adjusted SG&A expenses (1)	$	399.3		$	308.1		$	91.2		29.6	%


SG&A as % gross profit	58.5		%	57.7		%	0.8		%
Adjusted SG&A as % gross profit (1)	60.6		%	57.6		%	3.0		%


Group 1 Automotive, Inc.
Reported Operating Data — U.S.
(Unaudited)
(In millions, except unit data)

	Nine Months Ended September 30,
	2022			2021			Increase/(Decrease)			% Change
Revenues:
New vehicle retail sales	$	4,581.8		$	3,958.9		$	622.9		15.7	%
Used vehicle retail sales	3,447.6			2,481.7			965.9			38.9	%
Used vehicle wholesale sales	177.6			179.6			(1.9)			(1.1)	%
Total used	3,625.3			2,661.3			963.9			36.2	%
Parts and service sales	1,307.7			982.0			325.7			33.2	%
F&I, net	498.1			389.4			108.7			27.9	%
Total revenues	$	10,012.8		$	7,991.6		$	2,021.2		25.3	%
Gross profit:
New vehicle retail sales	$	538.5		$	362.6		$	175.9		48.5	%
Used vehicle retail sales	203.0			210.7			(7.8)			(3.7)	%
Used vehicle wholesale sales	3.8			13.6			(9.7)			(71.7)	%
Total used	206.8			224.3			(17.5)			(7.8)	%
Parts and service sales	713.1			535.1			178.0			33.3	%
F&I, net	498.1			389.4			108.7			27.9	%
Total gross profit	$	1,956.5		$	1,511.4		$	445.1		29.5	%
Gross margin:
New vehicle retail sales	11.8		%	9.2		%	2.6		%
Used vehicle retail sales	5.9		%	8.5		%	(2.6)		%
Used vehicle wholesale sales	2.2		%	7.6		%	(5.4)		%
Total used	5.7		%	8.4		%	(2.7)		%
Parts and service sales	54.5		%	54.5		%	—		%

Total gross margin	19.5		%	18.9		%	0.6		%
Units sold:
Retail new vehicles sold	92,870			89,183			3,687			4.1	%
Retail used vehicles sold	110,635			96,143			14,492			15.1	%
Wholesale used vehicles sold	18,513			19,804			(1,291)			(6.5)	%
Total used	129,148			115,947			13,201			11.4	%
Average sales price per unit sold:
New vehicle retail	$	49,335		$	44,391		$	4,945		11.1	%
Used vehicle retail	$	31,162		$	25,813		$	5,349		20.7	%
Gross profit per unit sold:
New vehicle retail sales	$	5,799		$	4,066		$	1,733		42.6	%
Used vehicle retail sales	$	1,834		$	2,192		$	(357)		(16.3)	%
Used vehicle wholesale sales	$	207		$	685		$	(478)		(69.8)	%
Total used	$	1,601		$	1,934		$	(333)		(17.2)	%
F&I PRU	$	2,448		$	2,101		$	346		16.5	%
Other:





SG&A expenses	$	1,133.0		$	883.0		$	250.1		28.3	%
Adjusted SG&A expenses (1)	$	1,168.4		$	882.8		$	285.6		32.3	%


SG&A as % gross profit	57.9		%	58.4		%	(0.5)		%
Adjusted SG&A as % gross profit (1)	59.7		%	58.4		%	1.3		%


Group 1 Automotive, Inc.
Reported Operating Data — U.K.
(Unaudited)
(In millions, except unit data)

	Three Months Ended September 30,
	2022			2021			Increase/ (Decrease)			% Change		Currency Impact on Current Period Results		Constant Currency % Change
Revenues:
New vehicle retail sales	$	296.4		$	305.4		$	(9.0)		(2.9)	%	$	(53.8)	14.7	%
Used vehicle retail sales	276.5			328.0			(51.5)			(15.7)	%	(47.3)		(1.3)	%
Used vehicle wholesale sales	28.3			38.1			(9.8)			(25.7)	%	(4.9)		(12.9)	%
Total used	304.8			366.1			(61.3)			(16.7)	%	(52.2)		(2.5)	%
Parts and service sales	61.8			63.4			(1.5)			(2.4)	%	(10.7)		14.5	%
F&I, net	16.1			15.6			0.5			3.1	%	(2.8)		21.1	%
Total revenues	$	679.1		$	750.4		$	(71.3)		(9.5)	%	$	(119.5)	6.4	%
Gross profit:
New vehicle retail sales	$	25.9		$	21.5		$	4.5		20.8	%	$	(4.9)	43.7	%
Used vehicle retail sales	15.5			23.9			(8.5)			(35.5)	%	(2.7)		(24.4)	%
Used vehicle wholesale sales	(0.3)			4.1			(4.4)			(106.3)	%	—		(107.4)	%
Total used	15.2			28.1			(12.9)			(45.9)	%	(2.6)		(36.6)	%
Parts and service sales	36.1			38.5			(2.4)			(6.2)	%	(6.3)		10.1	%
F&I, net	16.1			15.6			0.5			3.1	%	(2.8)		21.1	%
Total gross profit	$	93.3		$	103.7		$	(10.3)		(10.0)	%	$	(16.6)	6.0	%
Gross margin:
New vehicle retail sales	8.8		%	7.0		%	1.7		%
Used vehicle retail sales	5.6		%	7.3		%	(1.7)		%
Used vehicle wholesale sales	(0.9)		%	10.9		%	(11.8)		%
Total used	5.0		%	7.7		%	(2.7)		%
Parts and service sales	58.4		%	60.8		%	(2.4)		%

Total gross margin	13.7		%	13.8		%	(0.1)		%
Units sold:
Retail new vehicles sold	7,492			7,381			111			1.5	%
Retail used vehicles sold	10,255			10,810			(555)			(5.1)	%
Wholesale used vehicles sold	3,003			4,202			(1,199)			(28.5)	%
Total used	13,258			15,012			(1,754)			(11.7)	%
Average sales price per unit sold:
New vehicle retail	$	39,563		$	41,370		$	(1,808)		(4.4)	%	$	(7,177)	13.0	%
Used vehicle retail	$	26,967		$	30,346		$	(3,380)		(11.1)	%	$	(4,611)	4.1	%
Gross profit per unit sold:
New vehicle retail sales	$	3,464		$	2,910		$	554		19.0	%	$	(655)	41.6	%
Used vehicle retail sales	$	1,507		$	2,215		$	(709)		(32.0)	%	$	(259)	(20.3)	%
Used vehicle wholesale sales	$	(87)		$	987		$	(1,074)		(108.8)	%	$	15	(110.3)	%
Total used	$	1,146		$	1,872		$	(726)		(38.8)	%	$	(197)	(28.2)	%
F&I PRU	$	905		$	857		$	49		5.7	%	$	(158)	24.1	%
Other:
SG&A expenses	$	65.1		$	67.6		$	(2.5)		(3.6)	%	$	(11.3)	13.1	%
Adjusted SG&A expenses (1)	$	63.8		$	67.0		$	(3.2)		(4.7)	%	$	(11.1)	11.8	%


SG&A as % gross profit	69.8		%	65.2		%	4.6		%
Adjusted SG&A as % gross profit (1)	68.4		%	64.6		%	3.8		%


Group 1 Automotive, Inc.
Reported Operating Data — U.K.
(Unaudited)
(In millions, except unit data)

	Nine Months Ended September 30,
	2022			2021			Increase/ (Decrease)			% Change		Currency Impact on Current Period Results		Constant Currency % Change
Revenues:
New vehicle retail sales	$	898.0		$	869.7		$	28.3		3.3	%	$	(97.6)	14.5	%
Used vehicle retail sales	906.3			820.5			85.8			10.5	%	(91.5)		21.6	%
Used vehicle wholesale sales	101.2			98.4			2.8			2.8	%	(10.0)		12.9	%
Total used	1,007.5			919.0			88.6			9.6	%	(101.4)		20.7	%
Parts and service sales	183.4			170.2			13.2			7.7	%	(19.0)		18.9	%
F&I, net	51.4			41.9			9.6			22.8	%	(5.4)		35.7	%
Total revenues	$	2,140.3		$	2,000.7		$	139.6		7.0	%	$	(223.4)	18.1	%
Gross profit:
New vehicle retail sales	$	79.6		$	54.6		$	25.0		45.8	%	$	(9.0)	62.3	%
Used vehicle retail sales	50.4			52.9			(2.5)			(4.7)	%	(5.0)		4.7	%
Used vehicle wholesale sales	(1.8)			6.5			(8.3)			(127.2)	%	0.2		(129.9)	%
Total used	48.7			59.5			(10.8)			(18.1)	%	(4.8)		(10.0)	%
Parts and service sales	109.5			102.1			7.4			7.2	%	(11.3)		18.3	%
F&I, net	51.4			41.9			9.6			22.8	%	(5.4)		35.7	%
Total gross profit	$	289.2		$	258.1		$	31.2		12.1	%	$	(30.6)	23.9	%
Gross margin:
New vehicle retail sales	8.9		%	6.3		%	2.6		%
Used vehicle retail sales	5.6		%	6.5		%	(0.9)		%
Used vehicle wholesale sales	(1.7)		%	6.6		%	(8.4)		%
Total used	4.8		%	6.5		%	(1.6)		%
Parts and service sales	59.7		%	60.0		%	(0.3)		%

Total gross margin	13.5		%	12.9		%	0.6		%
Units sold:
Retail new vehicles sold	21,922			21,316			606			2.8	%
Retail used vehicles sold	30,505			28,416			2,089			7.4	%
Wholesale used vehicles sold	9,556			11,464			(1,908)			(16.6)	%
Total used	40,061			39,880			181			0.5	%
Average sales price per unit sold:
New vehicle retail	$	40,962		$	40,800		$	162		0.4	%	$	(4,452)	11.3	%
Used vehicle retail	$	29,711		$	28,876		$	835		2.9	%	$	(2,999)	13.3	%
Gross profit per unit sold:
New vehicle retail sales	$	3,633		$	2,563		$	1,070		41.8	%	$	(412)	57.8	%
Used vehicle retail sales	$	1,653		$	1,863		$	(210)		(11.3)	%	$	(164)	(2.5)	%
Used vehicle wholesale sales	$	(185)		$	568		$	(753)		(132.6)	%	$	19	(135.9)	%
Total used	$	1,215		$	1,491		$	(276)		(18.5)	%	$	(121)	(10.4)	%
F&I PRU	$	981		$	842		$	139		16.5	%	$	(103)	28.7	%
Other:
SG&A expenses	$	196.6		$	173.3		$	23.3		13.4	%	$	(20.6)	25.3	%
Adjusted SG&A expenses (1)	$	197.9		$	172.1		$	25.8		15.0	%	$	(20.4)	26.9	%


SG&A as % gross profit	68.0		%	67.1		%	0.8		%
Adjusted SG&A as % gross profit (1)	68.4		%	66.7		%	1.7		%


Group 1 Automotive, Inc.
Same Store Operating Data — Consolidated
(Unaudited)
(In millions, except unit data)

	Three Months Ended September 30,
	2022			2021			Increase/ (Decrease)			% Change		Currency Impact on Current Period Results		Constant Currency % Change
Revenues:
New vehicle retail sales	$	1,534.6		$	1,487.1		$	47.5		3.2	%	$	(52.8)	6.7	%
Used vehicle retail sales	1,271.4			1,213.6			57.8			4.8	%	(46.8)		8.6	%
Used vehicle wholesale sales	76.5			104.6			(28.2)			(26.9)	%	(4.8)		(22.3)	%
Total used	1,347.9			1,318.3			29.6			2.2	%	(51.6)		6.2	%
Parts and service sales	438.8			408.6			30.2			7.4	%	(10.1)		9.9	%
F&I, net	155.6			143.0			12.6			8.8	%	(2.8)		10.8	%
Total revenues	$	3,476.9		$	3,357.0		$	119.9		3.6	%	$	(117.4)	7.1	%
Gross profit:
New vehicle retail sales	$	163.7		$	158.1		$	5.6		3.6	%	$	(4.8)	6.6	%
Used vehicle retail sales	64.0			96.3			(32.2)			(33.5)	%	(2.6)		(30.8)	%
Used vehicle wholesale sales	(1.2)			7.3			(8.5)			(115.9)	%	—		(116.5)	%
Total used	62.9			103.6			(40.7)			(39.3)	%	(2.6)		(36.9)	%
Parts and service sales	239.0			222.1			16.8			7.6	%	(6.0)		10.3	%
F&I, net	155.6			143.0			12.6			8.8	%	(2.8)		10.8	%
Total gross profit	$	621.2		$	626.9		$	(5.7)		(0.9)	%	$	(16.2)	1.7	%
Gross margin:
New vehicle retail sales	10.7		%	10.6		%	—		%
Used vehicle retail sales	5.0		%	7.9		%	(2.9)		%
Used vehicle wholesale sales	(1.5)		%	7.0		%	(8.5)		%
Total used	4.7		%	7.9		%	(3.2)		%
Parts and service sales	54.5		%	54.4		%	0.1		%

Total gross margin	17.9		%	18.7		%	(0.8)		%
Units sold:
Retail new vehicles sold	32,249			32,734			(485)			(1.5)	%
Retail used vehicles sold	41,684			41,866			(182)			(0.4)	%
Wholesale used vehicles sold	7,911			10,755			(2,844)			(26.4)	%
Total used	49,595			52,621			(3,026)			(5.8)	%
Average sales price per unit sold:
New vehicle retail	$	47,586		$	45,431		$	2,155		4.7	%	$	(1,638)	8.3	%
Used vehicle retail	$	30,502		$	28,988		$	1,513		5.2	%	$	(1,122)	9.1	%
Gross profit per unit sold:
New vehicle retail sales	$	5,078		$	4,831		$	247		5.1	%	$	(149)	8.2	%
Used vehicle retail sales	$	1,536		$	2,299		$	(764)		(33.2)	%	$	(62)	(30.5)	%
Used vehicle wholesale sales	$	(147)		$	682		$	(829)		(121.6)	%	$	6	(122.4)	%
Total used	$	1,267		$	1,969		$	(702)		(35.6)	%	$	(52)	(33.0)	%
F&I PRU	$	2,105		$	1,917		$	188		9.8	%	$	(38)	11.8	%
Other:





SG&A expenses	$	386.3		$	368.4		$	17.9		4.9	%	$	(11.1)	7.9	%
Adjusted SG&A expenses (1)	$	384.2		$	367.2		$	17.0		4.6	%	$	(10.8)	7.6	%


SG&A as % gross profit	62.2		%	58.8		%	3.4		%
Adjusted SG&A as % gross profit (1)	61.9		%	58.6		%	3.3		%
Operating margin %	6.2		%	7.1		%	(0.9)		%
Adjusted operating margin % (1)	6.3		%	7.2		%	(0.9)		%


Group 1 Automotive, Inc.
Same Store Operating Data — Consolidated
(Unaudited)
(In millions, except unit data)

	Nine Months Ended September 30,
	2022			2021			Increase/ (Decrease)			% Change		Currency Impact on Current Period Results		Constant Currency % Change
Revenues:
New vehicle retail sales	$	4,468.0		$	4,759.1		$	(291.2)		(6.1)	%	$	(93.3)	(4.2)	%
Used vehicle retail sales	3,701.3			3,262.1			439.2			13.5	%	(86.0)		16.1	%
Used vehicle wholesale sales	234.9			275.0			(40.1)			(14.6)	%	(9.5)		(11.1)	%
Total used	3,936.2			3,537.1			399.1			11.3	%	(95.5)		14.0	%
Parts and service sales	1,271.6			1,132.4			139.2			12.3	%	(17.5)		13.8	%
F&I, net	462.2			424.3			37.8			8.9	%	(5.2)		10.1	%
Total revenues	$	10,137.8		$	9,852.9		$	284.9		2.9	%	$	(211.5)	5.0	%
Gross profit:
New vehicle retail sales	$	493.9		$	410.4		$	83.6		20.4	%	$	(8.6)	22.5	%
Used vehicle retail sales	212.9			261.2			(48.3)			(18.5)	%	(4.7)		(16.7)	%
Used vehicle wholesale sales	1.0			19.9			(18.9)			(94.9)	%	0.2		(95.7)	%
Total used	213.9			281.1			(67.2)			(23.9)	%	(4.5)		(22.3)	%
Parts and service sales	688.9			625.8			63.1			10.1	%	(10.6)		11.8	%
F&I, net	462.2			424.3			37.8			8.9	%	(5.2)		10.1	%
Total gross profit	$	1,858.9		$	1,741.6		$	117.3		6.7	%	$	(28.9)	8.4	%
Gross margin:
New vehicle retail sales	11.1		%	8.6		%	2.4		%
Used vehicle retail sales	5.8		%	8.0		%	(2.3)		%
Used vehicle wholesale sales	0.4		%	7.2		%	(6.8)		%
Total used	5.4		%	7.9		%	(2.5)		%
Parts and service sales	54.2		%	55.3		%	(1.1)		%

Total gross margin	18.3		%	17.7		%	0.7		%
Units sold:
Retail new vehicles sold	93,713			108,897			(15,184)			(13.9)	%
Retail used vehicles sold	120,077			122,933			(2,856)			(2.3)	%
Wholesale used vehicles sold	22,885			30,827			(7,942)			(25.8)	%
Total used	142,962			153,760			(10,798)			(7.0)	%
Average sales price per unit sold:
New vehicle retail	$	47,677		$	43,703		$	3,974		9.1	%	$	(995)	11.4	%
Used vehicle retail	$	30,824		$	26,535		$	4,289		16.2	%	$	(716)	18.9	%
Gross profit per unit sold:
New vehicle retail sales	$	5,271		$	3,769		$	1,502		39.9	%	$	(92)	42.3	%
Used vehicle retail sales	$	1,773		$	2,124		$	(352)		(16.6)	%	$	(39)	(14.7)	%
Used vehicle wholesale sales	$	44		$	646		$	(601)		(93.1)	%	$	7	(94.2)	%
Total used	$	1,496		$	1,828		$	(332)		(18.2)	%	$	(32)	(16.4)	%
F&I PRU	$	2,162		$	1,830		$	331		18.1	%	$	(24)	19.4	%
Other:





SG&A expenses	$	1,133.4		$	1,038.2		$	95.2		9.2	%	$	(19.5)	11.0	%
Adjusted SG&A expenses (1)	$	1,131.3		$	1,035.7		$	95.6		9.2	%	$	(19.2)	11.1	%


SG&A as % gross profit	61.0		%	59.6		%	1.4		%
Adjusted SG&A as % gross profit (1)	60.9		%	59.5		%	1.4		%
Operating margin %	6.6		%	6.6		%	—		%
Adjusted operating margin % (1)	6.6		%	6.6		%	—		%


Group 1 Automotive, Inc.
Same Store Operating Data — U.S.
(Unaudited)
(In millions, except unit data)

	Three Months Ended September 30,
	2022			2021			Increase/(Decrease)			% Change
Revenues:
New vehicle retail sales	$	1,242.6		$	1,181.8		$	60.8		5.1	%
Used vehicle retail sales	997.2			885.6			111.6			12.6	%
Used vehicle wholesale sales	48.4			66.6			(18.2)			(27.3)	%
Total used	1,045.6			952.2			93.4			9.8	%
Parts and service sales	380.2			348.0			32.1			9.2	%
F&I, net	139.6			127.4			12.2			9.6	%
Total revenues	$	2,808.0		$	2,609.4		$	198.6		7.6	%
Gross profit:
New vehicle retail sales	$	138.2		$	136.7		$	1.6		1.2	%
Used vehicle retail sales	48.8			72.3			(23.5)			(32.5)	%
Used vehicle wholesale sales	(0.9)			3.2			(4.1)			(128.4)	%
Total used	47.9			75.5			(27.6)			(36.6)	%
Parts and service sales	204.1			184.9			19.2			10.4	%
F&I, net	139.6			127.4			12.2			9.6	%
Total gross profit	$	529.9		$	524.5		$	5.4		1.0	%
Gross margin:
New vehicle retail sales	11.1		%	11.6		%	(0.4)		%
Used vehicle retail sales	4.9		%	8.2		%	(3.3)		%
Used vehicle wholesale sales	(1.9)		%	4.8		%	(6.7)		%
Total used	4.6		%	7.9		%	(3.3)		%
Parts and service sales	53.7		%	53.1		%	0.6		%

Total gross margin	18.9		%	20.1		%	(1.2)		%
Units sold:
Retail new vehicles sold	24,854			25,353			(499)			(2.0)	%
Retail used vehicles sold	31,518			31,056			462			1.5	%
Wholesale used vehicles sold	4,925			6,553			(1,628)			(24.8)	%
Total used	36,443			37,609			(1,166)			(3.1)	%
Average sales price per unit sold:
New vehicle retail	$	49,996		$	46,613		$	3,383		7.3	%
Used vehicle retail	$	31,640		$	28,516		$	3,124		11.0	%
Gross profit per unit sold:
New vehicle retail sales	$	5,562		$	5,390		$	172		3.2	%
Used vehicle retail sales	$	1,549		$	2,329		$	(780)		(33.5)	%
Used vehicle wholesale sales	$	(184)		$	486		$	(670)		(137.8)	%
Total used	$	1,315		$	2,008		$	(693)		(34.5)	%
F&I PRU	$	2,477		$	2,259		$	218		9.7	%
Other:





SG&A expenses	$	322.7		$	302.0		$	20.7		6.9	%
Adjusted SG&A expenses (1)	$	321.9		$	301.4		$	20.5		6.8	%


SG&A as % gross profit	60.9		%	57.6		%	3.3		%
Adjusted SG&A as % gross profit (1)	60.7		%	57.5		%	3.3		%


Group 1 Automotive, Inc.
Same Store Operating Data — U.S.
(Unaudited)
(In millions, except unit data)

	Nine Months Ended September 30,
	2022			2021			Increase/(Decrease)			% Change
Revenues:
New vehicle retail sales	$	3,623.5		$	3,889.8		$	(266.3)		(6.8)	%
Used vehicle retail sales	2,869.8			2,442.5			427.3			17.5	%
Used vehicle wholesale sales	139.9			176.7			(36.8)			(20.8)	%
Total used	3,009.7			2,619.2			390.5			14.9	%
Parts and service sales	1,104.8			970.4			134.4			13.9	%
F&I, net	413.6			382.5			31.1			8.1	%
Total revenues	$	8,151.7		$	7,861.9		$	289.7		3.7	%
Gross profit:
New vehicle retail sales	$	419.5		$	355.8		$	63.7		17.9	%
Used vehicle retail sales	166.9			208.3			(41.3)			(19.9)	%
Used vehicle wholesale sales	2.6			13.3			(10.8)			(80.7)	%
Total used	169.5			221.6			(52.1)			(23.5)	%
Parts and service sales	589.0			527.5			61.4			11.6	%
F&I, net	413.6			382.5			31.1			8.1	%
Total gross profit	$	1,591.5		$	1,487.4		$	104.1		7.0	%
Gross margin:
New vehicle retail sales	11.6		%	9.1		%	2.4		%
Used vehicle retail sales	5.8		%	8.5		%	(2.7)		%
Used vehicle wholesale sales	1.8		%	7.6		%	(5.7)		%
Total used	5.6		%	8.5		%	(2.8)		%
Parts and service sales	53.3		%	54.4		%	(1.1)		%

Total gross margin	19.5		%	18.9		%	0.6		%
Units sold:
Retail new vehicles sold	73,307			87,597			(14,290)			(16.3)	%
Retail used vehicles sold	92,490			94,574			(2,084)			(2.2)	%
Wholesale used vehicles sold	14,104			19,388			(5,284)			(27.3)	%
Total used	106,594			113,962			(7,368)			(6.5)	%
Average sales price per unit sold:
New vehicle retail	$	49,429		$	44,406		$	5,024		11.3	%
Used vehicle retail	$	31,029		$	25,826		$	5,202		20.1	%
Gross profit per unit sold:
New vehicle retail sales	$	5,722		$	4,062		$	1,660		40.9	%
Used vehicle retail sales	$	1,805		$	2,202		$	(397)		(18.0)	%
Used vehicle wholesale sales	$	182		$	688		$	(506)		(73.5)	%
Total used	$	1,590		$	1,945		$	(355)		(18.2)	%
F&I PRU	$	2,495		$	2,100		$	395		18.8	%
Other:





SG&A expenses	$	949.8		$	869.0		$	80.8		9.3	%
Adjusted SG&A expenses (1)	$	949.0		$	867.1		$	81.9		9.4	%


SG&A as % gross profit	59.7		%	58.4		%	1.3		%
Adjusted SG&A as % gross profit (1)	59.6		%	58.3		%	1.3		%


Group 1 Automotive, Inc.
Same Store Operating Data — U.K.
(Unaudited)
(In millions, except unit data)

	Three Months Ended September 30,
	2022			2021			Increase/ (Decrease)			% Change		Currency Impact on Current Period Results		Constant Currency % Change
Revenues:
New vehicle retail sales	$	292.0		$	305.4		$	(13.4)		(4.4)	%	$	(52.8)	12.9	%
Used vehicle retail sales	274.2			328.0			(53.8)			(16.4)	%	(46.8)		(2.2)	%
Used vehicle wholesale sales	28.1			38.1			(10.0)			(26.2)	%	(4.8)		(13.5)	%
Total used	302.3			366.1			(63.8)			(17.4)	%	(51.6)		(3.3)	%
Parts and service sales	58.7			60.5			(1.9)			(3.1)	%	(10.1)		13.6	%
F&I, net	16.0			15.6			0.4			2.5	%	(2.8)		20.4	%
Total revenues	$	668.9		$	747.6		$	(78.7)		(10.5)	%	$	(117.4)	5.2	%
Gross profit:
New vehicle retail sales	$	25.5		$	21.5		$	4.0		18.7	%	$	(4.8)	41.1	%
Used vehicle retail sales	15.2			23.9			(8.7)			(36.5)	%	(2.6)		(25.6)	%
Used vehicle wholesale sales	(0.3)			4.1			(4.4)			(106.3)	%	—		(107.3)	%
Total used	14.9			28.1			(13.1)			(46.8)	%	(2.6)		(37.7)	%
Parts and service sales	34.8			37.2			(2.4)			(6.4)	%	(6.0)		9.8	%
F&I, net	16.0			15.6			0.4			2.5	%	(2.8)		20.4	%
Total gross profit	$	91.2		$	102.4		$	(11.1)		(10.9)	%	$	(16.2)	5.0	%
Gross margin:
New vehicle retail sales	8.7		%	7.0		%	1.7		%
Used vehicle retail sales	5.5		%	7.3		%	(1.8)		%
Used vehicle wholesale sales	(0.9)		%	10.9		%	(11.8)		%
Total used	4.9		%	7.7		%	(2.7)		%
Parts and service sales	59.4		%	61.5		%	(2.1)		%

Total gross margin	13.6		%	13.7		%	(0.1)		%
Units sold:
Retail new vehicles sold	7,395			7,381			14			0.2	%
Retail used vehicles sold	10,166			10,810			(644)			(6.0)	%
Wholesale used vehicles sold	2,986			4,202			(1,216)			(28.9)	%
Total used	13,152			15,012			(1,860)			(12.4)	%
Average sales price per unit sold:
New vehicle retail	$	39,485		$	41,370		$	(1,886)		(4.6)	%	$	(7,141)	12.7	%
Used vehicle retail	$	26,972		$	30,346		$	(3,374)		(11.1)	%	$	(4,602)	4.0	%
Gross profit per unit sold:
New vehicle retail sales	$	3,448		$	2,910		$	539		18.5	%	$	(650)	40.9	%
Used vehicle retail sales	$	1,496		$	2,215		$	(719)		(32.5)	%	$	(256)	(20.9)	%
Used vehicle wholesale sales	$	(87)		$	987		$	(1,074)		(108.8)	%	$	15	(110.3)	%
Total used	$	1,137		$	1,872		$	(735)		(39.3)	%	$	(195)	(28.9)	%
F&I PRU	$	909		$	857		$	53		6.1	%	$	(159)	24.7	%
Other:
SG&A expenses	$	63.6		$	66.4		$	(2.8)		(4.2)	%	$	(11.1)	12.4	%
Adjusted SG&A expenses (1)	$	62.3		$	65.9		$	(3.5)		(5.3)	%	$	(10.8)	11.0	%
SG&A as % gross profit	69.7		%	64.9		%	4.8		%
Adjusted SG&A as % gross profit (1)	68.3		%	64.3		%	4.0		%

(1) See the section in this release titled “Reconciliation of Certain Non-GAAP Financial Measures” for the GAAP to non-GAAP reconciliation of these figures.


Group 1 Automotive, Inc.
Same Store Operating Data — U.K.
(Unaudited)
(In millions, except unit data)

	Nine Months Ended September 30,
	2022			2021			Increase/ (Decrease)			% Change		Currency Impact on Current Period Results		Constant Currency % Change
Revenues:
New vehicle retail sales	$	844.5		$	869.3		$	(24.9)		(2.9)	%	$	(93.3)	7.9	%
Used vehicle retail sales	831.4			819.6			11.8			1.4	%	(86.0)		11.9	%
Used vehicle wholesale sales	95.0			98.3			(3.3)			(3.3)	%	(9.5)		6.3	%
Total used	926.4			917.9			8.6			0.9	%	(95.5)		11.3	%
Parts and service sales	166.7			161.9			4.8			3.0	%	(17.5)		13.8	%
F&I, net	48.5			41.8			6.7			16.0	%	(5.2)		28.4	%
Total revenues	$	1,986.2		$	1,991.0		$	(4.8)		(0.2)	%	$	(211.5)	10.4	%
Gross profit:
New vehicle retail sales	$	74.5		$	54.6		$	19.9		36.4	%	$	(8.6)	52.2	%
Used vehicle retail sales	46.0			52.9			(6.9)			(13.1)	%	(4.7)		(4.3)	%
Used vehicle wholesale sales	(1.6)			6.6			(8.1)			(123.7)	%	0.2		(126.1)	%
Total used	44.4			59.5			(15.0)			(25.3)	%	(4.5)		(17.7)	%
Parts and service sales	99.9			98.3			1.6			1.6	%	(10.6)		12.4	%
F&I, net	48.5			41.8			6.7			16.0	%	(5.2)		28.4	%
Total gross profit	$	267.4		$	254.2		$	13.2		5.2	%	$	(28.9)	16.5	%
Gross margin:
New vehicle retail sales	8.8		%	6.3		%	2.5		%
Used vehicle retail sales	5.5		%	6.5		%	(0.9)		%
Used vehicle wholesale sales	(1.6)		%	6.7		%	(8.3)		%
Total used	4.8		%	6.5		%	(1.7)		%
Parts and service sales	59.9		%	60.7		%	(0.8)		%

Total gross margin	13.5		%	12.8		%	0.7		%
Units sold:
Retail new vehicles sold	20,406			21,300			(894)			(4.2)	%
Retail used vehicles sold	27,587			28,359			(772)			(2.7)	%
Wholesale used vehicles sold	8,781			11,439			(2,658)			(23.2)	%
Total used	36,368			39,798			(3,430)			(8.6)	%
Average sales price per unit sold:
New vehicle retail	$	41,383		$	40,813		$	569		1.4	%	$	(4,571)	12.6	%
Used vehicle retail	$	30,138		$	28,900		$	1,238		4.3	%	$	(3,118)	15.1	%
Gross profit per unit sold:
New vehicle retail sales	$	3,650		$	2,563		$	1,087		42.4	%	$	(422)	58.9	%
Used vehicle retail sales	$	1,666		$	1,865		$	(199)		(10.7)	%	$	(169)	(1.6)	%
Used vehicle wholesale sales	$	(177)		$	573		$	(750)		(130.9)	%	$	18	(133.9)	%
Total used	$	1,221		$	1,494		$	(273)		(18.3)	%	$	(124)	(9.9)	%
F&I PRU	$	1,011		$	842		$	169		20.1	%	$	(108)	32.9	%
Other:
SG&A expenses	$	183.6		$	169.2		$	14.4		8.5	%	$	(19.5)	20.0	%
Adjusted SG&A expenses (1)	$	182.3		$	168.7		$	13.7		8.1	%	$	(19.2)	19.5	%


SG&A as % gross profit	68.7		%	66.6		%	2.1		%
Adjusted SG&A as % gross profit (1)	68.2		%	66.3		%	1.8		%

(1) See the section in this release titled “Reconciliation of Certain Non-GAAP Financial Measures” for the GAAP to non-GAAP reconciliation of these figures.


Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures — Consolidated
(Unaudited)
(In millions, except per share data)

	Three Months Ended September 30, 2022
	U.S. GAAP			Dealership and real estate transactions		Acquisition costs		Legal matters		Non-GAAP adjusted
SG&A expenses	$	450.9		$	14.3	$	(1.3)	$	(0.8)	$	463.1

Income (loss) from operations	$	279.9		$	(14.3)	$	1.3	$	0.8	$	267.7



Income (loss) before income taxes	$	257.2		$	(14.3)	$	1.3	$	0.8	$	245.0
Less: Provision (benefit) for income taxes	60.2			(3.4)		—		0.2		56.9
Net income (loss) from continuing operations	197.1			(10.8)		1.3		0.6		188.1
Less: Earnings (loss) allocated to participating securities	5.4			(0.3)		—		—		5.2
Net income (loss) from continuing operations available to diluted common shares	$	191.6		$	(10.5)	$	1.2	$	0.6	$	182.9

Diluted earnings (loss) per common share from continuing operations	$	12.57		$	(0.69)	$	0.08	$	0.04	$	12.00

Effective tax rate	23.4		%							23.2		%

SG&A as % gross profit (1)	59.9		%							61.5		%
Operating margin (2)	6.7		%							6.4		%
Pretax margin (3)	6.2		%							5.9		%

Same Store SG&A expenses	$	386.3		$	—	$	(1.3)	$	(0.8)	$	384.2
Same Store SG&A as % gross profit (1)	62.2		%							61.9		%

Same Store income from operations	$	216.3		$	—	$	1.3	$	0.8	$	218.4
Same Store operating margin (2)	6.2		%							6.3		%


	U.S. GAAP		Non-GAAP adjustments		Non-GAAP adjusted
Net loss from discontinued operations	$	(1.3)	$	—	$	(1.3)
Less: earnings allocated to participating securities	—		—		—
Net loss from discontinued operations available to diluted common shares	$	(1.3)	$	—	$	(1.3)

Net income (loss)	$	195.7	$	(8.9)	$	186.8
Less: earnings (loss) allocated to participating securities	5.4		(0.2)		5.1
Net income (loss) available to diluted common shares	$	190.3	$	(8.7)	$	181.6

Diluted (loss) earnings per common share from discontinued operations	$	(0.09)	$	—	$	(0.09)
Diluted earnings (loss) per common share from continuing operations	12.57		(0.57)		12.00
Diluted earnings (loss) per common share	$	12.48	$	(0.57)	$	11.91


Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures — Consolidated
(Unaudited)
(In millions, except per share data)

	Three Months Ended September 30, 2021
	U.S. GAAP			Non-cash gain on interest rate swaps		Catastrophic events		Acquisition Costs		Legal matters		Asset impairments		Non-GAAP adjusted

SG&A expenses	$	376.3		$	—	$	(0.6)	$	(4.3)	$	3.7	$	—	$	375.1
Asset impairments	$	1.7		$	—	$	—	$	—	$	—	$	(1.7)	$	—
Income (loss) from operations	$	241.5		$	—	$	0.6	$	4.3	$	(3.7)	$	1.7	$	244.5
Floorplan interest expense	$	4.3		$	0.9	$	—	$	—	$	—	$	—	$	5.2


Income (loss) before income taxes	$	224.1		$	(0.9)	$	0.6	$	4.3	$	(3.7)	$	1.7	$	226.2
Less: Provision (benefit) for income taxes	51.6			(0.2)		0.1		0.9		(0.8)		0.4		52.0
Net income (loss) from continuing operations	172.5			(0.7)		0.4		3.4		(2.9)		1.3		174.1
Less: Earnings (loss) allocated to participating securities	5.7			—		—		0.1		(0.1)		—		5.8
Net income (loss) from continuing operations available to diluted common shares	$	166.8		$	(0.7)	$	0.4	$	3.3	$	(2.8)	$	1.3	$	168.4

Diluted earnings (loss) per common share from continuing operations	$	9.35		$	(0.04)	$	0.02	$	0.18	$	(0.16)	$	0.07	$	9.44

Effective tax rate	23.0		%											23.0		%

SG&A as % gross profit (1)	58.9		%											58.7		%
Operating margin (2)	7.1		%											7.2		%
Pretax margin (3)	6.6		%											6.6		%


Same Store SG&A expenses	$	368.4		$	—	$	(0.6)	$	(4.3)	$	3.7	$	—	$	367.2
Same Store SG&A as % gross profit (1)	58.8		%											58.6		%

Same Store income (loss) from operations	$	239.5		$	—	$	0.6	$	4.3	$	(3.7)	$	1.6	$	242.3
Same Store operating margin (2)	7.1		%											7.2		%


	U.S. GAAP		Non-GAAP adjustments		Non-GAAP adjusted
Net (loss) income from discontinued operations	$	(0.4)	$	3.8	$	3.4
Less: earnings allocated to participating securities	—		0.1		0.1
Net (loss) income from discontinued operations available to diluted common shares	$	(0.4)	$	3.7	$	3.3

Net income	$	172.1	$	5.4	$	177.5
Less: earnings allocated to participating securities	5.7		0.2		5.9
Net income available to diluted common shares	$	166.4	$	5.2	$	171.7

Diluted (loss) earnings per common share from discontinued operations	$	(0.02)	$	0.21	$	0.18
Diluted earnings per common share from continuing operations	9.35		0.09		9.44
Diluted earnings per common share	$	9.33	$	0.29	$	9.62


Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures — Consolidated
(Unaudited)
(In millions, except per share data)

	Nine Months Ended September 30, 2022
	U.S. GAAP			Dealership and real estate transactions		Acquisition costs		Legal matters		Asset impairments		Non-GAAP adjusted
SG&A expenses	$	1,329.6		$	38.8	$	(1.3)	$	(0.8)	$	—	$	1,366.3
Asset impairments	$	0.8		$	—	$	—	$	—	$	(0.8)	$	—
Income (loss) from operations	$	849.4		$	(38.8)	$	1.3	$	0.8	$	0.8	$	813.5



Income (loss) before income taxes	$	779.6		$	(38.8)	$	1.3	$	0.8	$	0.8	$	743.7
Less: Provision (benefit) for income taxes	182.1			(9.1)		—		0.2		0.2		173.4
Net income (loss) from continuing operations	597.5			(29.7)		1.3		0.6		0.6		570.3
Less: Earnings (loss) allocated to participating securities	16.7			(0.8)		—		—		—		15.9
Net income (loss) from continuing operations available to diluted common shares	$	580.8		$	(28.9)	$	1.2	$	0.6	$	0.6	$	554.3

Diluted earnings (loss) per common share from continuing operations	$	36.43		$	(1.81)	$	0.08	$	0.04	$	0.04	$	34.77

Effective tax rate	23.4		%									23.3		%

SG&A as % gross profit (1)	59.2		%									60.8		%
Operating margin (2)	7.0		%									6.7		%
Pretax margin (3)	6.4		%									6.1		%

Same Store SG&A expenses	$	1,133.4		$	—	$	(1.3)	$	(0.8)	$	—	$	1,131.3
Same Store SG&A as % gross profit (1)	61.0		%									60.9		%

Same Store income from operations	$	668.2		$	—	$	1.3	$	0.8	$	0.8	$	671.0
Same Store operating margin (2)	6.6		%									6.6		%


	U.S. GAAP		Non-GAAP adjustments		Non-GAAP adjusted
Net (loss) income from discontinued operations	$	(2.9)	$	5.0	$	2.1
Less: (loss) earnings allocated to participating securities	(0.1)		0.1		0.1
Net (loss) income from discontinued operations available to diluted common shares	$	(2.8)	$	4.9	$	2.0

Net income (loss)	$	594.6	$	(22.2)	$	572.4
Less: earnings (loss) allocated to participating securities	16.6		(0.6)		16.0
Net income (loss) available to diluted common shares	$	578.0	$	(21.6)	$	556.4

Diluted (loss) earnings per common share from discontinued operations	$	(0.18)	$	0.31	$	0.13
Diluted earnings (loss) per common share from continuing operations	36.43		(1.66)		34.77
Diluted earnings (loss) per common share	$	36.25	$	(1.35)	$	34.90


Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures — Consolidated
(Unaudited)
(In millions, except per share data)

	Nine Months Ended September 30, 2021
	U.S. GAAP			Non-cash loss on interest rate swaps		Catastrophic events		Dealership and real estate transactions		Acquisition costs		Legal matters		Asset impairments		Tax rate changes		Non-GAAP adjusted

SG&A expenses	$	1,056.2		$	—	$	(2.8)	$	1.1	$	(4.3)	$	4.7	$	—	$	—	$	1,054.9
Asset impairments	$	1.7		$	—	$	—	$	—	$	—	$	—	$	(1.7)	$	—	$	—
Income (loss) from operations	$	654.7		$	—	$	2.8	$	(1.1)	$	4.3	$	(4.7)	$	1.7	$	—	$	657.8
Floorplan interest expense	$	20.5		$	(1.4)	$	—	$	—	$	—	$	—	$	—	$	—	$	19.1


Income (loss) before income taxes	$	594.4		$	1.4	$	2.8	$	(1.1)	$	4.3	$	(4.7)	$	1.7	$	—	$	598.9
Less: Provision (benefit) for income taxes	132.2			0.3		0.6		(0.3)		0.9		(1.0)		0.4		1.9		135.1
Net income (loss) from continuing operations	462.2			1.1		2.2		(0.8)		3.4		(3.7)		1.3		(1.9)		463.8
Less: Earnings (loss) allocated to participating securities	15.5			—		0.1		—		0.1		(0.1)		—		(0.1)		15.6
Net income (loss) from continuing operations available to diluted common shares	$	446.7		$	1.1	$	2.1	$	(0.8)	$	3.3	$	(3.5)	$	1.3	$	(1.8)	$	448.2

Diluted earnings (loss) per common share from continuing operations	$	25.05		$	0.06	$	0.12	$	(0.05)	$	0.18	$	(0.20)	$	0.07	$	(0.10)	$	25.14

Effective tax rate	22.2		%															22.6		%

SG&A as % gross profit (1)	59.7		%															59.6		%
Operating margin (2)	6.6		%															6.6		%
Pretax margin (3)	5.9		%															6.0		%


Same Store SG&A expenses	$	1,038.2		$	—	$	(2.8)	$	—	$	(4.3)	$	4.7	$	—	$	—	$	1,035.7
Same Store SG&A as % gross profit (1)	59.6		%															59.5		%

Same Store income (loss) from operations	$	647.8		$	—	$	2.8	$	—	$	4.3	$	(4.7)	$	1.6	$	—	$	651.8
Same Store operating margin (2)	6.6		%															6.6		%


	U.S. GAAP		Non-GAAP adjustments		Non-GAAP adjusted
Net income from discontinued operations	$	2.8	$	3.8	$	6.6
Less: earnings allocated to participating securities	0.1		0.1		0.2
Net income from discontinued operations available to diluted common shares	$	2.7	$	3.7	$	6.4

Net income	$	465.0	$	5.4	$	470.4
Less: earnings allocated to participating securities	15.6		0.2		15.8
Net income available to diluted common shares	$	449.4	$	5.2	$	454.6

Diluted earnings per common share from discontinued operations	$	0.15	$	0.21	$	0.36
Diluted earnings per common share from continuing operations	25.05		0.08		25.14
Diluted earnings per common share	$	25.21	$	0.29	$	25.50


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

	September 30, 2022		December 31, 2021		Increase/(Decrease)		% Change
SELECTED BALANCE SHEET INFORMATION:
(In millions)
Cash and cash equivalents	$	20.5	$	14.9	$	5.6	37.7	%
Inventories, net	$	1,185.6	$	1,073.1	$	112.5	10.5	%
Floorplan notes payable, net (1)	$	745.9	$	531.0	$	214.9	40.5	%
Total debt	$	1,942.4	$	2,035.7	$	(93.3)	(4.6)	%
Total equity	$	2,214.1	$	1,825.2	$	388.9	21.3	%
(1) Amounts are net of offset accounts of $218.5 and $271.9, respectively.


	September 30, 2022	December 31, 2021	September 30, 2021
DAYS’ SUPPLY IN INVENTORY (1):
Consolidated
New vehicle inventory	16	12	13
Used vehicle inventory	34	42	30
U.S.
New vehicle inventory	15	9	11
Used vehicle inventory	31	36	25
U.K.
New vehicle inventory	20	33	19
Used vehicle inventory	46	66	42



(1) Days’ supply in inventory is calculated based on inventory unit levels and 30-day total unit sales volumes, both at the end of each reporting period.