Oregon | 93-0572810 | |||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||
150 N. Bartlett Street | Medford | Oregon | 97501 | |
(Address of principal executive offices) | (Zip Code) | |||
Large Accelerated Filer | ☒ | Accelerated Filer | ☐ | |
Non-Accelerated Filer | ☐ | Smaller Reporting Company | ☐ | |
Emerging Growth Company | ☐ |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | Outstanding at October 25, 2019 | |||
Class A common stock without par value | The New York Stock Exchange | 22,644,997 | ||||
Class B common stock without par value | ||||||
600,000 |
PART I - FINANCIAL INFORMATION | Page | |
Item 1. | ||
Consolidated Statements of Operations (Unaudited) | ||
Consolidated Statements of Comprehensive Income (Unaudited) – Three and Nine Months Ended September 30, | ||
Consolidated Statements of | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II - OTHER INFORMATION | ||
Item 1. | Legal Proceedings | |
Item 1A. | ||
Item | ||
Item 6. | ||
September 30, 2017 | December 31, 2016 | |||||||
Assets | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 38,577 | $ | 50,282 | ||||
Accounts receivable, net of allowance for doubtful accounts of $6,145 and $5,281 | 446,613 | 417,714 | ||||||
Inventories, net | 1,966,456 | 1,772,587 | ||||||
Other current assets | 59,622 | 46,611 | ||||||
Total Current Assets | 2,511,268 | 2,287,194 | ||||||
Property and equipment, net of accumulated depreciation of $190,962 and $167,300 | 1,087,920 | 1,006,130 | ||||||
Goodwill | 257,185 | 259,399 | ||||||
Franchise value | 186,977 | 184,268 | ||||||
Other non-current assets | 328,243 | 107,159 | ||||||
Total Assets | $ | 4,371,593 | $ | 3,844,150 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current Liabilities: | ||||||||
Floor plan notes payable | $ | 114,833 | $ | 94,602 | ||||
Floor plan notes payable: non-trade | 1,598,111 | 1,506,895 | ||||||
Current maturities of long-term debt | 17,619 | 20,965 | ||||||
Trade payables | 103,105 | 88,423 | ||||||
Accrued liabilities | 241,094 | 211,109 | ||||||
Total Current Liabilities | 2,074,762 | 1,921,994 | ||||||
Long-term debt, less current maturities | 991,333 | 769,916 | ||||||
Deferred revenue | 98,265 | 81,929 | ||||||
Deferred income taxes | 66,474 | 59,075 | ||||||
Other long-term liabilities | 109,383 | 100,460 | ||||||
Total Liabilities | 3,340,217 | 2,933,374 | ||||||
Stockholders' Equity: | ||||||||
Preferred stock - no par value; authorized 15,000 shares; none outstanding | — | — | ||||||
Class A common stock - no par value; authorized 100,000 shares; issued and outstanding 23,966 and 23,382 | 148,880 | 165,512 | ||||||
Class B common stock - no par value; authorized 25,000 shares; issued and outstanding 1,000 and 1,762 | 124 | 219 | ||||||
Additional paid-in capital | 42,373 | 41,225 | ||||||
Retained earnings | 839,999 | 703,820 | ||||||
Total Stockholders' Equity | 1,031,376 | 910,776 | ||||||
Total Liabilities and Stockholders' Equity | $ | 4,371,593 | $ | 3,844,150 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Revenues: | ||||||||||||||||
New vehicle | $ | 1,553,511 | $ | 1,297,511 | $ | 4,147,870 | $ | 3,602,603 | ||||||||
Used vehicle retail | 679,180 | 580,885 | 1,915,038 | 1,667,258 | ||||||||||||
Used vehicle wholesale | 65,739 | 75,271 | 206,754 | 207,131 | ||||||||||||
Finance and insurance | 101,044 | 87,709 | 282,672 | 246,390 | ||||||||||||
Service, body and parts | 265,683 | 217,148 | 744,262 | 616,088 | ||||||||||||
Fleet and other | 15,185 | 11,443 | 86,883 | 46,697 | ||||||||||||
Total revenues | 2,680,342 | 2,269,967 | 7,383,479 | 6,386,167 | ||||||||||||
Cost of sales: | ||||||||||||||||
New vehicle | 1,465,466 | 1,221,668 | 3,909,168 | 3,387,132 | ||||||||||||
Used vehicle retail | 600,522 | 512,076 | 1,693,091 | 1,466,947 | ||||||||||||
Used vehicle wholesale | 64,565 | 74,353 | 202,351 | 202,897 | ||||||||||||
Service, body and parts | 133,191 | 112,806 | 376,096 | 317,028 | ||||||||||||
Fleet and other | 13,577 | 11,803 | 82,829 | 45,684 | ||||||||||||
Total cost of sales | 2,277,321 | 1,932,706 | 6,263,535 | 5,419,688 | ||||||||||||
Gross profit | 403,021 | 337,261 | 1,119,944 | 966,479 | ||||||||||||
Asset impairments | — | 3,498 | — | 10,494 | ||||||||||||
Selling, general and administrative | 282,241 | 228,134 | 782,303 | 662,766 | ||||||||||||
Depreciation and amortization | 14,828 | 12,206 | 41,598 | 36,372 | ||||||||||||
Operating income | 105,952 | 93,423 | 296,043 | 256,847 | ||||||||||||
Floor plan interest expense | (10,629 | ) | (6,186 | ) | (28,013 | ) | (18,304 | ) | ||||||||
Other interest expense, net | (9,905 | ) | (5,647 | ) | (23,745 | ) | (16,608 | ) | ||||||||
Other income (expense), net | 1,125 | (1,513 | ) | 11,357 | (4,534 | ) | ||||||||||
Income before income taxes | 86,543 | 80,077 | 255,642 | 217,401 | ||||||||||||
Income tax provision | (34,657 | ) | (26,036 | ) | (99,829 | ) | (71,662 | ) | ||||||||
Net income | $ | 51,886 | $ | 54,041 | $ | 155,813 | $ | 145,739 | ||||||||
Basic net income per share | $ | 2.07 | $ | 2.15 | $ | 6.21 | $ | 5.72 | ||||||||
Shares used in basic per share calculations | 25,008 | 25,194 | 25,090 | 25,490 | ||||||||||||
Diluted net income per share | $ | 2.07 | $ | 2.14 | $ | 6.19 | $ | 5.69 | ||||||||
Shares used in diluted per share calculations | 25,076 | 25,290 | 25,158 | 25,598 | ||||||||||||
Cash dividends declared per Class A and Class B share | $ | 0.27 | $ | 0.25 | $ | 0.79 | $ | 0.70 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Net income | $ | 51,886 | $ | 54,041 | $ | 155,813 | $ | 145,739 | ||||||||
Other comprehensive income, net of tax: | ||||||||||||||||
Gain on cash flow hedges, net of tax expense of $0, $0, $0, and $175, respectively | — | — | — | 277 | ||||||||||||
Comprehensive income | $ | 51,886 | $ | 54,041 | $ | 155,813 | $ | 146,016 |
LITHIA MOTORS, INC. AND SUBSIDIARIES Consolidated Balance Sheets (In millions) (Unaudited) | ||||||||
September 30, 2019 | December 31, 2018 | |||||||
Assets | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 27.1 | $ | 31.6 | ||||
Accounts receivable, net of allowance for doubtful accounts of $6.9 and $7.2 | 459.7 | 529.4 | ||||||
Inventories, net | 2,386.4 | 2,365.3 | ||||||
Other current assets | 56.7 | 65.1 | ||||||
Total Current Assets | 2,929.9 | 2,991.4 | ||||||
Property and equipment, net of accumulated depreciation of $272.1 and $240.5 | 1,482.6 | 1,448.0 | ||||||
Operating lease right-of-use assets | 249.5 | — | ||||||
Goodwill | 456.8 | 434.9 | ||||||
Franchise value | 309.1 | 288.7 | ||||||
Other non-current assets | 309.6 | 221.0 | ||||||
Total Assets | $ | 5,737.5 | $ | 5,384.0 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current Liabilities: | ||||||||
Floor plan notes payable | $ | 407.5 | $ | 324.4 | ||||
Floor plan notes payable: non-trade | 1,594.5 | 1,733.3 | ||||||
Current maturities of long-term debt | 26.3 | 25.9 | ||||||
Trade payables | 127.0 | 126.3 | ||||||
Accrued liabilities | 328.1 | 283.6 | ||||||
Total Current Liabilities | 2,483.4 | 2,493.5 | ||||||
Long-term debt, less current maturities | 1,287.8 | 1,358.2 | ||||||
Deferred revenue | 133.8 | 121.7 | ||||||
Deferred income taxes | 130.0 | 91.2 | ||||||
Noncurrent operating lease liabilities | 235.2 | — | ||||||
Other long-term liabilities | 108.1 | 122.2 | ||||||
Total Liabilities | 4,378.3 | 4,186.8 | ||||||
Stockholders’ Equity: | ||||||||
Preferred stock - no par value; authorized 15.0 shares; none outstanding | — | — | ||||||
Class A common stock - no par value; authorized 100.0 shares; issued and outstanding 22.6 and 22.0 | 16.9 | — | ||||||
Class B common stock - no par value; authorized 25.0 shares; issued and outstanding 0.6 and 1.0 | 0.1 | 0.1 | ||||||
Additional paid-in capital | 3.4 | 35.0 | ||||||
Accumulated other comprehensive loss | (1.9 | ) | — | |||||
Retained earnings | 1,340.7 | 1,162.1 | ||||||
Total Stockholders’ Equity | 1,359.2 | 1,197.2 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 5,737.5 | $ | 5,384.0 |
Nine Months Ended September 30, | ||||||||
2017 | 2016 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 155,813 | $ | 145,739 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Asset impairments | — | 10,494 | ||||||
Depreciation and amortization | 41,598 | 36,372 | ||||||
Stock-based compensation | 8,396 | 8,665 | ||||||
Gain on disposal of other assets | (382 | ) | (4,299 | ) | ||||
Gain on disposal of franchise | — | (1,102 | ) | |||||
Deferred income taxes | 7,398 | 9,782 | ||||||
(Increase) decrease (net of acquisitions and dispositions): | ||||||||
Trade receivables, net | (13,345 | ) | (5,911 | ) | ||||
Inventories | (16,098 | ) | (85,564 | ) | ||||
Other assets | 15,207 | 4,688 | ||||||
Increase (net of acquisitions and dispositions): | ||||||||
Floor plan notes payable | 12,126 | 18,122 | ||||||
Trade payables | 12,397 | 6,153 | ||||||
Accrued liabilities | 25,907 | 32,874 | ||||||
Other long-term liabilities and deferred revenue | 11,519 | 18,227 | ||||||
Net cash provided by operating activities | 260,536 | 194,240 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (72,174 | ) | (81,363 | ) | ||||
Proceeds from sales of assets | 12,327 | 1,756 | ||||||
Cash paid for other investments | (7,929 | ) | (22,279 | ) | ||||
Cash paid for acquisitions, net of cash acquired | (400,558 | ) | (199,435 | ) | ||||
Proceeds from sales of stores | 3,417 | 11,837 | ||||||
Net cash used in investing activities | (464,917 | ) | (289,484 | ) | ||||
Cash flows from financing activities: | ||||||||
Borrowings on floor plan notes payable, net: non-trade | 34,056 | 93,817 | ||||||
Borrowings on lines of credit | 1,306,000 | 841,623 | ||||||
Repayments on lines of credit | (1,432,853 | ) | (744,494 | ) | ||||
Principal payments on long-term debt and capital leases, scheduled | (13,697 | ) | (12,278 | ) | ||||
Principal payments on long-term debt and capital leases, other | (46,471 | ) | (5,903 | ) | ||||
Proceeds from issuance of long-term debt | 395,905 | 22,816 | ||||||
Payments of debt issuance costs | (4,517 | ) | — | |||||
Proceeds from issuance of common stock | 5,577 | 5,191 | ||||||
Repurchase of common stock | (31,521 | ) | (108,597 | ) | ||||
Dividends paid | (19,803 | ) | (17,823 | ) | ||||
Net cash provided by financing activities | 192,676 | 74,352 | ||||||
Decrease in cash and cash equivalents | (11,705 | ) | (20,892 | ) | ||||
Cash and cash equivalents at beginning of period | 50,282 | 45,008 | ||||||
Cash and cash equivalents at end of period | $ | 38,577 | $ | 24,116 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid during the period for interest | $ | 51,160 | $ | 36,641 | ||||
Cash paid during the period for income taxes, net | 89,206 | 29,478 | ||||||
Floor plan debt paid in connection with store disposals | — | 5,284 | ||||||
Supplemental schedule of non-cash activities: | ||||||||
Debt issued in connection with acquisitions | $ | 1,748 | $ | — | ||||
Non-cash assets transferred in connection with acquisitions | — | 2,637 | ||||||
Debt assumed in connection with acquisitions | 86,902 | 19,657 | ||||||
Issuance of Class A common stock in connection with acquisitions | 2,137 | — |
LITHIA MOTORS, INC. AND SUBSIDIARIES Consolidated Statements of Operations (In millions, except per share amounts) (Unaudited) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Revenues: | ||||||||||||||||
New vehicle | $ | 1,824.8 | $ | 1,733.0 | $ | 4,993.3 | $ | 4,914.5 | ||||||||
Used vehicle retail | 916.3 | 805.9 | 2,632.4 | 2,325.6 | ||||||||||||
Used vehicle wholesale | 74.4 | 92.0 | 233.5 | 253.2 | ||||||||||||
Finance and insurance | 136.3 | 121.1 | 382.7 | 342.1 | ||||||||||||
Service, body and parts | 340.5 | 311.3 | 993.3 | 908.4 | ||||||||||||
Fleet and other | 40.1 | 28.7 | 168.6 | 104.4 | ||||||||||||
Total revenues | 3,332.4 | 3,092.0 | 9,403.8 | 8,848.2 | ||||||||||||
Cost of sales: | ||||||||||||||||
New vehicle | 1,724.8 | 1,632.1 | 4,711.9 | 4,625.2 | ||||||||||||
Used vehicle retail | 816.6 | 719.6 | 2,355.0 | 2,078.5 | ||||||||||||
Used vehicle wholesale | 73.3 | 90.6 | 229.7 | 249.0 | ||||||||||||
Service, body and parts | 169.0 | 156.9 | 492.2 | 461.9 | ||||||||||||
Fleet and other | 37.8 | 26.6 | 159.8 | 98.5 | ||||||||||||
Total cost of sales | 2,821.5 | 2,625.8 | 7,948.6 | 7,513.1 | ||||||||||||
Gross profit | 510.9 | 466.2 | 1,455.2 | 1,335.1 | ||||||||||||
Asset impairments | — | — | 0.5 | — | ||||||||||||
Selling, general and administrative | 343.2 | 309.0 | 1,021.5 | 939.9 | ||||||||||||
Depreciation and amortization | 20.9 | 19.6 | 60.9 | 55.3 | ||||||||||||
Operating income | 146.8 | 137.6 | 372.3 | 339.9 | ||||||||||||
Floor plan interest expense | (17.9 | ) | (16.0 | ) | (55.5 | ) | (45.1 | ) | ||||||||
Other interest expense, net | (14.8 | ) | (15.0 | ) | (45.0 | ) | (40.7 | ) | ||||||||
Other income, net | 3.3 | 2.4 | 8.9 | 5.4 | ||||||||||||
Income before income taxes | 117.4 | 109.0 | 280.7 | 259.5 | ||||||||||||
Income tax provision | (32.2 | ) | (15.9 | ) | (77.2 | ) | (53.7 | ) | ||||||||
Net income | $ | 85.2 | $ | 93.1 | $ | 203.5 | $ | 205.8 | ||||||||
Basic net income per share | $ | 3.67 | $ | 3.85 | $ | 8.77 | $ | 8.34 | ||||||||
Shares used in basic per share calculations | 23.2 | 24.2 | 23.2 | 24.7 | ||||||||||||
Diluted net income per share | $ | 3.64 | $ | 3.84 | $ | 8.72 | $ | 8.31 | ||||||||
Shares used in diluted per share calculations | 23.4 | 24.3 | 23.3 | 24.8 | ||||||||||||
Cash dividends paid per Class A and Class B share | $ | 0.30 | $ | 0.29 | $ | 0.89 | $ | 0.85 |
LITHIA MOTORS, INC. AND SUBSIDIARIES Consolidated Statements of Comprehensive Income (In millions) (Unaudited) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net income | $ | 85.2 | $ | 93.1 | $ | 203.5 | $ | 205.8 | ||||||||
Other comprehensive income, net of tax: | ||||||||||||||||
Loss on cash flow hedges, net of tax benefit of $0.4, $0.0, $0.7, and $0.0, respectively | (1.0 | ) | — | (1.9 | ) | — | ||||||||||
Comprehensive income | $ | 84.2 | $ | 93.1 | $ | 201.6 | $ | 205.8 |
LITHIA MOTORS, INC. AND SUBSIDIARIES Consolidated Statements of Changes in Stockholders’ Equity (In millions) (Unaudited) | |||||||||||||||||||||||||||||
Three and Nine Months Ended September 30, 2019 | |||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Total Stockholders’ Equity | |||||||||||||||||||||||||
Class A | Class B | ||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||
Balance at December 31, 2018 | 22.0 | $ | — | 1.0 | $ | 0.1 | $ | 35.0 | $ | — | $ | 1,162.1 | $ | 1,197.2 | |||||||||||||||
Net income | — | — | — | — | — | — | 56.4 | 56.4 | |||||||||||||||||||||
Issuance of stock in connection with employee stock plans | — | 2.3 | — | — | — | — | — | 2.3 | |||||||||||||||||||||
Issuance of restricted stock to employees | 0.1 | — | — | — | — | — | — | — | |||||||||||||||||||||
Repurchase of Class A common stock | — | (3.1 | ) | — | — | — | — | — | (3.1 | ) | |||||||||||||||||||
Class B common stock converted to Class A common stock | 0.2 | — | (0.2 | ) | — | — | — | — | — | ||||||||||||||||||||
Compensation for stock and stock option issuances and excess tax benefits from option exercises | — | 10.5 | — | — | (7.0 | ) | — | — | 3.5 | ||||||||||||||||||||
Dividends paid | — | — | — | — | — | — | (6.7 | ) | (6.7 | ) | |||||||||||||||||||
Retained Earnings Adjustment for Adoption of ASC 842 | — | — | — | — | — | — | 0.9 | 0.9 | |||||||||||||||||||||
Balance at March 31, 2019 | 22.3 | 9.7 | 0.8 | 0.1 | 28.0 | — | 1,212.7 | 1,250.5 | |||||||||||||||||||||
Net income | — | — | — | — | — | — | 61.9 | 61.9 | |||||||||||||||||||||
Loss on cash flow hedges, net of tax benefit of $0.3 | — | — | — | — | — | (0.9 | ) | — | (0.9 | ) | |||||||||||||||||||
Issuance of stock in connection with employee stock plans | 0.1 | 2.8 | — | — | — | — | — | 2.8 | |||||||||||||||||||||
Compensation for stock and stock option issuances and excess tax benefits from option exercises | — | 0.5 | — | — | 3.4 | — | — | 3.9 | |||||||||||||||||||||
Option premiums paid | — | — | — | — | (31.4 | ) | — | (5.1 | ) | (36.5 | ) | ||||||||||||||||||
Dividends paid | — | — | — | — | — | — | (7.0 | ) | (7.0 | ) | |||||||||||||||||||
Balance at June 30, 2019 | 22.4 | 13.0 | 0.8 | 0.1 | — | (0.9 | ) | 1,262.5 | 1,274.7 | ||||||||||||||||||||
Net income | — | — | — | — | — | — | 85.2 | 85.2 | |||||||||||||||||||||
Loss on cash flow hedges, net of tax benefit of $0.4 | — | — | — | — | — | (1.0 | ) | — | (1.0 | ) | |||||||||||||||||||
Issuance of stock in connection with employee stock plans | — | 2.9 | — | — | — | — | — | 2.9 | |||||||||||||||||||||
Class B common stock converted to Class A common stock | 0.2 | — | (0.2 | ) | — | — | — | — | — | ||||||||||||||||||||
Compensation for stock and stock option issuances and excess tax benefits from option exercises | — | 1.0 | — | — | 3.4 | — | — | 4.4 | |||||||||||||||||||||
Dividends paid | — | — | — | — | — | — | (7.0 | ) | (7.0 | ) | |||||||||||||||||||
Balance at September 30, 2019 | 22.6 | $ | 16.9 | 0.6 | $ | 0.1 | $ | 3.4 | $ | (1.9 | ) | $ | 1,340.7 | $ | 1,359.2 |
LITHIA MOTORS, INC. AND SUBSIDIARIES Consolidated Statements of Changes in Stockholders’ Equity (In millions) (Unaudited) | |||||||||||||||||||||||||||||
Three and Nine Months Ended September 30, 2018 | |||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Total Stockholders’ Equity | |||||||||||||||||||||||||
Class A | Class B | ||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||
Balance at December 31, 2017 | 23.9 | $ | 149.1 | 1.0 | $ | 0.1 | $ | 11.3 | $ | — | $ | 922.7 | $ | 1,083.2 | |||||||||||||||
Net income | — | — | — | — | — | — | 52.1 | 52.1 | |||||||||||||||||||||
Issuance of stock in connection with employee stock plans | — | 1.8 | — | — | — | — | — | 1.8 | |||||||||||||||||||||
Issuance of restricted stock to employees | 0.1 | — | — | — | — | — | — | — | |||||||||||||||||||||
Repurchase of Class A common stock | (0.1 | ) | (8.2 | ) | — | — | — | — | — | (8.2 | ) | ||||||||||||||||||
Compensation for stock and stock option issuances and excess tax benefits from option exercises | — | 0.3 | — | — | 3.3 | — | — | 3.6 | |||||||||||||||||||||
Dividends paid | — | — | — | — | — | — | (6.8 | ) | (6.8 | ) | |||||||||||||||||||
Retained earnings adjustment for adoption of ASC 606 | — | — | — | — | — | — | 1.4 | 1.4 | |||||||||||||||||||||
Balance at March 31, 2018 | 23.9 | 143.0 | 1.0 | 0.1 | 14.6 | — | 969.4 | 1,127.1 | |||||||||||||||||||||
Net income | — | — | — | — | — | — | 60.7 | 60.7 | |||||||||||||||||||||
Issuance of stock in connection with employee stock plans | 0.1 | 2.7 | — | — | — | — | — | 2.7 | |||||||||||||||||||||
Repurchase of Class A common stock | (0.6 | ) | (59.1 | ) | — | — | — | — | — | (59.1 | ) | ||||||||||||||||||
Compensation for stock and stock option issuances and excess tax benefits from option exercises | — | 7.8 | — | — | (4.5 | ) | — | — | 3.3 | ||||||||||||||||||||
Option premiums received (paid) | — | — | — | — | 33.4 | — | — | 33.4 | |||||||||||||||||||||
Dividends paid | — | — | — | — | — | — | (7.2 | ) | (7.2 | ) | |||||||||||||||||||
Balance at June 30, 2018 | 23.4 | 94.4 | 1.0 | 0.1 | 43.5 | — | 1,022.9 | 1,160.9 | |||||||||||||||||||||
Net income | — | — | — | — | — | — | 93.1 | 93.1 | |||||||||||||||||||||
Issuance of stock in connection with employee stock plans | — | 2.9 | — | — | — | — | — | 2.9 | |||||||||||||||||||||
Repurchase of Class A common stock | (0.5 | ) | (47.7 | ) | — | — | — | — | — | (47.7 | ) | ||||||||||||||||||
Compensation for stock and stock option issuances and excess tax benefits from option exercises | — | 0.5 | — | — | 2.4 | — | — | 2.9 | |||||||||||||||||||||
Dividends paid | — | — | — | — | — | — | (7.0 | ) | (7.0 | ) | |||||||||||||||||||
Balance at September 30, 2018 | 22.9 | $ | 50.1 | 1.0 | $ | 0.1 | $ | 45.9 | $ | — | $ | 1,109.0 | $ | 1,205.1 |
LITHIA MOTORS, INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (In millions) (Unaudited) | ||||||||
Nine Months Ended September 30, | ||||||||
2019 | 2018 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 203.5 | $ | 205.8 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Asset impairments | 0.5 | — | ||||||
Depreciation and amortization | 60.9 | 55.3 | ||||||
Stock-based compensation | 11.8 | 9.8 | ||||||
Gain on disposal of other assets | — | (0.1 | ) | |||||
Gain on disposal of franchise | (9.1 | ) | (15.4 | ) | ||||
Deferred income taxes | 39.5 | 19.5 | ||||||
(Increase) decrease (net of acquisitions and dispositions): | ||||||||
Accounts receivable, net | 69.7 | 63.4 | ||||||
Inventories | (4.1 | ) | (14.5 | ) | ||||
Other assets | 22.3 | 12.0 | ||||||
Increase (decrease) (net of acquisitions and dispositions): | ||||||||
Floor plan notes payable | 83.1 | 8.1 | ||||||
Trade payables | 0.1 | 3.6 | ||||||
Accrued liabilities | (36.5 | ) | 8.6 | |||||
Other long-term liabilities and deferred revenue | 11.8 | 23.1 | ||||||
Net cash provided by operating activities | 453.5 | 379.2 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (91.9 | ) | (113.4 | ) | ||||
Proceeds from sales of assets | 0.8 | 2.0 | ||||||
Cash paid for other investments | (6.7 | ) | (62.1 | ) | ||||
Cash paid for acquisitions, net of cash acquired | (142.8 | ) | (374.0 | ) | ||||
Proceeds from sales of stores | 40.9 | 32.9 | ||||||
Net cash used in investing activities | (199.7 | ) | (514.6 | ) | ||||
Cash flows from financing activities: | ||||||||
(Repayments) borrowings on floor plan notes payable, net: non-trade | (114.0 | ) | 61.7 | |||||
Borrowings on lines of credit | 2,147.0 | 1,964.5 | ||||||
Repayments on lines of credit | (2,209.6 | ) | (1,860.2 | ) | ||||
Principal payments on long-term debt and capital leases, scheduled | (18.0 | ) | (16.9 | ) | ||||
Principal payments on long-term debt and capital leases, other | (11.0 | ) | (5.3 | ) | ||||
Proceeds from issuance of long-term debt | — | 62.1 | ||||||
Payments of debt issuance costs | (0.4 | ) | (0.4 | ) | ||||
Proceeds from issuance of common stock | 8.0 | 7.4 | ||||||
Repurchase of common stock | (3.1 | ) | (81.6 | ) | ||||
Dividends paid | (20.7 | ) | (21.0 | ) | ||||
Payments of contingent consideration related to acquisitions | — | (0.8 | ) | |||||
Other financing activity | (36.5 | ) | — | |||||
Net cash (used in) provided by financing activities | (258.3 | ) | 109.5 | |||||
Decrease in cash and cash equivalents | (4.5 | ) | (25.9 | ) | ||||
Cash and cash equivalents at beginning of period | 31.6 | 57.3 | ||||||
Cash and cash equivalents at end of period | $ | 27.1 | $ | 31.4 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid during the period for interest | $ | 107.6 | $ | 88.9 | ||||
Cash paid during the period for income taxes, net | 13.8 | 2.9 | ||||||
Floor plan debt paid in connection with store disposals | 12.3 | 33.1 | ||||||
Supplemental schedule of non-cash activities: | ||||||||
Debt issued in connection with acquisitions | $ | 26.4 | $ | 125.1 | ||||
Debt assumed in connection with acquisitions | — | 10.8 | ||||||
ROU assets obtained in exchange for lease liabilities 1 | 260.3 | — |
Impact on Consolidated Balance Sheets | December 31, 2018 | Adjustments | January 1, 2019 | |||||||||
Operating lease right-of-use assets | $ | — | $ | 259.7 | $ | 259.7 | ||||||
Total Assets | 5,384.0 | 259.7 | 5,643.7 | |||||||||
Operating lease liabilities: | ||||||||||||
Accrued liabilities | 283.6 | 26.6 | 310.2 | |||||||||
Deferred revenue | 121.7 | (1.3 | ) | 120.4 | ||||||||
Noncurrent operating lease liabilities | — | 243.9 | 243.9 | |||||||||
Other long-term liabilities | 122.2 | (10.3 | ) | 111.9 | ||||||||
Total Liabilities | 4,186.8 | 258.8 | 4,445.6 | |||||||||
Retained earnings | 1,162.1 | 0.9 | 1,163.0 | |||||||||
Total Liabilities and Stockholders’ Equity | 5,384.0 | 259.7 | 5,643.7 |
September 30, 2019 | December 31, 2018 | |||||||
Contracts in transit | $ | 235.7 | $ | 294.0 | ||||
Trade receivables | 54.8 | 54.3 | ||||||
Vehicle receivables | 44.3 | 51.6 | ||||||
Manufacturer receivables | 104.0 | 105.5 | ||||||
Auto loan receivables | 62.5 | 61.5 | ||||||
Other receivables | 4.0 | 6.8 | ||||||
505.3 | 573.7 | |||||||
Less: Allowance for doubtful accounts | (6.9 | ) | (7.2 | ) | ||||
Less: Long-term portion of accounts receivable, net | (38.7 | ) | (37.1 | ) | ||||
Total accounts receivable, net | $ | 459.7 | $ | 529.4 |
September 30, 2017 | December 31, 2016 | |||||||
Contracts in transit | $ | 225,564 | $ | 233,506 | ||||
Trade receivables | 45,243 | 45,193 | ||||||
Vehicle receivables | 53,166 | 43,937 | ||||||
Manufacturer receivables | 85,307 | 76,948 | ||||||
Auto loan receivables | 75,651 | 69,859 | ||||||
Other receivables | 16,892 | 3,857 | ||||||
501,823 | 473,300 | |||||||
Less: Allowance | (6,145 | ) | (5,281 | ) | ||||
Less: Long-term portion of accounts receivable, net | (49,065 | ) | (50,305 | ) | ||||
Total accounts receivable, net | $ | 446,613 | $ | 417,714 |
September 30, 2019 | December 31, 2018 | |||||||
New vehicles | $ | 1,651.4 | $ | 1,700.1 | ||||
Used vehicles | 645.0 | 576.8 | ||||||
Parts and accessories | 90.0 | 88.4 | ||||||
Total inventories | $ | 2,386.4 | $ | 2,365.3 |
September 30, 2017 | December 31, 2016 | |||||||
New vehicles | $ | 1,412,668 | $ | 1,338,110 | ||||
Used vehicles | 474,948 | 368,067 | ||||||
Parts and accessories | 78,840 | 66,410 | ||||||
Total inventories | $ | 1,966,456 | $ | 1,772,587 |
Domestic | Import | Luxury | Consolidated | |||||||||||||
Balance as of December 31, 2015 ¹ | $ | 97,903 | $ | 84,384 | $ | 30,933 | $ | 213,220 | ||||||||
Additions through acquisitions2 | 18,154 | 21,795 | 7,448 | 47,397 | ||||||||||||
Reductions through divestitures | (1,218 | ) | — | — | (1,218 | ) | ||||||||||
Balance as of December 31, 2016 1 | 114,839 | 106,179 | 38,381 | 259,399 | ||||||||||||
Adjustments to purchase price allocations2,3 | (817 | ) | (1,006 | ) | (391 | ) | (2,214 | ) | ||||||||
Balance as of September 30, 2017 ¹ | $ | 114,022 | $ | 105,173 | $ | 37,990 | $ | 257,185 |
Domestic | Import | Luxury | Consolidated | |||||||||||||
Balance as of December 31, 2017 ¹ | $ | 114.0 | $ | 104.3 | $ | 38.0 | $ | 256.3 | ||||||||
Additions through acquisitions 2 | 51.4 | 85.8 | 43.5 | 180.7 | ||||||||||||
Reductions through divestitures | (0.9 | ) | (1.2 | ) | — | (2.1 | ) | |||||||||
Balance as of December 31, 2018 ¹ | 164.5 | 188.9 | 81.5 | 434.9 | ||||||||||||
Adjustments to purchase price allocations 3 | 1.6 | 1.6 | 1.9 | 5.1 | ||||||||||||
Additions through acquisitions 3 | 6.2 | 9.0 | 2.2 | 17.4 | ||||||||||||
Reductions through divestitures | (0.1 | ) | (0.5 | ) | — | (0.6 | ) | |||||||||
Balance as of September 30, 2019 1 | $ | 172.2 | $ | 199.0 | $ | 85.6 | $ | 456.8 |
Franchise Value | |||
Balance as of December 31, 2015 | $ | 157,699 | |
Additions through acquisitions | 27,087 | ||
Reductions through divestitures | (518 | ) | |
Balance as of December 31, 2016 | 184,268 | ||
Additions through acquisitions 1 | 495 | ||
Adjustments to purchase price allocations 2 | 2,214 | ||
Balance as of September 30, 2017 | $ | 186,977 |
Franchise Value | |||
Balance as of December 31, 2017 | $ | 187.0 | |
Additions through acquisitions 1 | 103.5 | ||
Reductions through divestitures | (1.8 | ) | |
Balance as of December 31, 2018 | 288.7 | ||
Adjustments to purchase price allocations 2 | 3.5 | ||
Additions through acquisitions 2 | 20.9 | ||
Reductions through divestitures | (4.0 | ) | |
Balance as of September 30, 2019 | $ | 309.1 |
(Dollars in thousands) | September 30, 2017 | December 31, 2016 | ||||||
Real estate mortgages | $ | 476,559 | $ | 428,367 | ||||
5.25% Senior Notes due 2025 | 300,000 | — | ||||||
Used vehicle inventory financing facility and revolving lines of credit | 226,654 | 353,507 | ||||||
Capital leases and other debt | 12,699 | 11,191 | ||||||
Total long-term debt outstanding | 1,015,912 | 793,065 | ||||||
Less: unamortized debt issuance costs | (6,960 | ) | (2,184 | ) | ||||
Less: current maturities (net of current debt issuance costs) | (17,619 | ) | (20,965 | ) | ||||
Long-term debt | $ | 991,333 | $ | 769,916 |
Repurchases Occurring in the Nine Months Ended September 30, 2017 | Cumulative Repurchases as of September 30, 2017 | |||||||||||||
Shares | Average Price | Shares | Average Price | |||||||||||
2016 Share Repurchase Authorization | 310,000 | $ | 91.33 | 1,023,725 | $ | 83.25 |
Fair Value at September 30, 2019 | Level 1 | Level 2 | Level 3 | |||||||||
Measured on a recurring basis: | ||||||||||||
Derivative contract, net | $ | — | $ | 2.6 | $ | — |
September 30, 2019 | December 31, 2018 | |||||||
Carrying value | ||||||||
5.25% Senior notes due 2025 | $ | 300.0 | $ | 300.0 | ||||
Real estate mortgages and other debt | 452.2 | 445.8 | ||||||
$ | 752.2 | $ | 745.8 | |||||
Fair value | ||||||||
5.25% Senior notes due 2025 | $ | 313.5 | $ | 278.6 | ||||
Real estate mortgages and other debt | 459.5 | 448.7 | ||||||
$ | 773.0 | $ | 727.3 |
September 30, 2017 | December 31, 2016 | |||||||
Carrying value | ||||||||
5.25% Senior Notes due 2025 | $ | 300,000 | $ | — | ||||
Real Estate Mortgages and Other Debt | 382,562 | 286,660 | ||||||
$ | 682,562 | $ | 286,660 | |||||
Fair value | ||||||||
5.25% Senior Notes due 2025 | $ | 309,750 | $ | — | ||||
Real Estate Mortgages and Other Debt | 403,009 | 293,522 | ||||||
$ | 712,759 | $ | 293,522 |
Fair Value at December 31, 2018 | Level 1 | Level 2 | Level 3 | |||||||||
Measured on a non-recurring basis: | ||||||||||||
Long-lived assets held and used: | ||||||||||||
Certain buildings and improvements | $ | — | $ | — | $ | 2.3 |
Three Months Ended September 30, | 2019 | 2018 | ||||||||||||||
(in millions, except per share data) | Class A | Class B | Class A | Class B | ||||||||||||
Net income applicable to common stockholders - basic | $ | 83.0 | $ | 2.2 | $ | 89.3 | $ | 3.8 | ||||||||
Reallocation of net income due to conversion of Class B to Class A common shares outstanding | 0.2 | — | 0.3 | — | ||||||||||||
Conversion of Class B common shares into Class A common shares | 2.0 | — | 3.5 | — | ||||||||||||
Net income applicable to common stockholders - diluted | $ | 85.2 | $ | 2.2 | $ | 93.1 | $ | 3.8 | ||||||||
Weighted average common shares outstanding – basic | 22.6 | 0.6 | 23.2 | 1.0 | ||||||||||||
Conversion of Class B common shares into Class A common shares | 0.6 | — | 1.0 | — | ||||||||||||
Effect of dilutive stock options on weighted average common shares | 0.2 | — | 0.1 | — | ||||||||||||
Weighted average common shares outstanding – diluted | 23.4 | 0.6 | 24.3 | 1.0 | ||||||||||||
Net income per common share - basic | $ | 3.67 | $ | 3.67 | $ | 3.85 | $ | 3.85 | ||||||||
Net income per common share - diluted | $ | 3.64 | $ | 3.64 | $ | 3.84 | $ | 3.84 |
Three Months Ended September 30, | 2017 | 2016 | ||||||||||||||
(in thousands, except per share data) | Class A | Class B | Class A | Class B | ||||||||||||
Net income applicable to common stockholders - basic | $ | 49,687 | $ | 2,199 | $ | 50,262 | $ | 3,779 | ||||||||
Reallocation of net income as a result of conversion of dilutive stock options | 1 | (1 | ) | 1 | (1 | ) | ||||||||||
Reallocation of net income due to conversion of Class B to Class A common shares outstanding | 285 | — | 439 | — | ||||||||||||
Conversion of Class B common shares into Class A common shares | 1,908 | — | 3,326 | — | ||||||||||||
Effect of dilutive stock options on net income | 5 | (5 | ) | 13 | (13 | ) | ||||||||||
Net income applicable to common stockholders - diluted | $ | 51,886 | $ | 2,193 | $ | 54,041 | $ | 3,765 | ||||||||
Weighted average common shares outstanding – basic | 23,948 | 1,060 | 23,432 | 1,762 | ||||||||||||
Conversion of Class B common shares into Class A common shares | 1,060 | — | 1,762 | — | ||||||||||||
Effect of dilutive stock options on weighted average common shares | 68 | — | 96 | — | ||||||||||||
Weighted average common shares outstanding – diluted | 25,076 | 1,060 | 25,290 | 1,762 | ||||||||||||
Net income per common share - basic | $ | 2.07 | $ | 2.07 | $ | 2.15 | $ | 2.15 | ||||||||
Net income per common share - diluted | $ | 2.07 | $ | 2.07 | $ | 2.14 | $ | 2.14 |
Three Months Ended September 30, | 2017 | 2016 | ||||||||||
Diluted EPS | Class A | Class B | Class A | Class B | ||||||||
Antidilutive Securities | ||||||||||||
Shares issuable pursuant to stock options not included since they were antidilutive | 9 | — | — | — |
Nine Months Ended September 30, | 2017 | 2016 | ||||||||||||||
(in thousands, except per share data) | Class A | Class B | Class A | Class B | ||||||||||||
Net income applicable to common stockholders - basic | $ | 147,876 | $ | 7,937 | $ | 134,533 | $ | 11,206 | ||||||||
Reallocation of distributed net income as a result of conversion of dilutive stock options | 3 | (3 | ) | 5 | (5 | ) | ||||||||||
Reallocation of distributed net income due to conversion of Class B to Class A common shares outstanding | 1,006 | — | 1,365 | — | ||||||||||||
Conversion of Class B common shares into Class A common shares | 6,909 | — | 9,794 | — | ||||||||||||
Effect of dilutive stock options on net income | 19 | (19 | ) | 42 | (42 | ) | ||||||||||
Net income applicable to common stockholders - diluted | $ | 155,813 | $ | 7,915 | $ | 145,739 | $ | 11,159 | ||||||||
Weighted average common shares outstanding – basic | 23,812 | 1,278 | 23,530 | 1,960 | ||||||||||||
Conversion of Class B common shares into Class A common shares | 1,278 | — | 1,960 | — | ||||||||||||
Effect of dilutive stock options on weighted average common shares | 68 | — | 108 | — | ||||||||||||
Weighted average common shares outstanding – diluted | 25,158 | 1,278 | 25,598 | 1,960 | ||||||||||||
Net income per common share - basic | $ | 6.21 | $ | 6.21 | $ | 5.72 | $ | 5.72 | ||||||||
Net income per common share - diluted | $ | 6.19 | $ | 6.19 | $ | 5.69 | $ | 5.69 |
Nine Months Ended September 30, | 2017 | 2016 | ||||||||||
Diluted EPS | Class A | Class B | Class A | Class B | ||||||||
Antidilutive Securities | ||||||||||||
Shares issuable pursuant to stock options not included since they were antidilutive | 10 | — | — | — |
Nine Months Ended September 30, | 2019 | 2018 | ||||||||||||||
(in millions, except per share data) | Class A | Class B | Class A | Class B | ||||||||||||
Net income applicable to common stockholders - basic | $ | 198.2 | $ | 5.3 | $ | 197.5 | $ | 8.3 | ||||||||
Reallocation of net income due to conversion of Class B to Class A common shares outstanding | 0.6 | — | 0.8 | — | ||||||||||||
Conversion of Class B common shares into Class A common shares | 4.7 | — | 7.5 | — | ||||||||||||
Net income applicable to common stockholders - diluted | $ | 203.5 | $ | 5.3 | $ | 205.8 | $ | 8.3 | ||||||||
Weighted average common shares outstanding – basic | 22.6 | 0.6 | 23.7 | 1.0 | ||||||||||||
Conversion of Class B common shares into Class A common shares | 0.6 | — | 1.0 | — | ||||||||||||
Effect of employee stock purchases and restricted stock units on weighted average common shares | 0.1 | — | 0.1 | — | ||||||||||||
Weighted average common shares outstanding – diluted | 23.3 | 0.6 | 24.8 | 1.0 | ||||||||||||
Net income per common share - basic | $ | 8.77 | $ | 8.77 | $ | 8.34 | $ | 8.34 | ||||||||
Net income per common share - diluted | $ | 8.72 | $ | 8.72 | $ | 8.31 | $ | 8.31 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Asset impairments to write investment down to fair value | $ | — | $ | 3,498 | $ | — | $ | 10,494 | ||||||||
Our portion of the partnership’s operating losses | — | 2,066 | — | 6,197 | ||||||||||||
Non-cash interest expense related to the amortization of the discounted fair value of future equity contributions | — | 31 | — | 185 | ||||||||||||
Tax benefits and credits generated | — | 7,592 | — | 20,374 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Domestic | $ | 1,008,310 | $ | 893,156 | $ | 2,863,018 | $ | 2,495,468 | ||||||||||||||||||||||||
New vehicle | $ | 613.0 | $ | 600.1 | $ | 1,682.7 | $ | 1,711.2 | ||||||||||||||||||||||||
Used vehicle retail | 328.1 | 288.2 | 949.6 | 836.5 | ||||||||||||||||||||||||||||
Used vehicle wholesale | 30.3 | 37.0 | 89.5 | 104.5 | ||||||||||||||||||||||||||||
Finance and insurance | 48.1 | 42.5 | 137.2 | 125.6 | ||||||||||||||||||||||||||||
Service, body and parts | 122.8 | 114.7 | 359.2 | 335.4 | ||||||||||||||||||||||||||||
Fleet and other | 15.5 | 15.3 | 47.6 | 50.4 | ||||||||||||||||||||||||||||
1,157.8 | 1,097.8 | 3,265.8 | 3,163.6 | |||||||||||||||||||||||||||||
Import | 1,209,955 | 983,947 | 3,276,667 | 2,777,007 | ||||||||||||||||||||||||||||
New vehicle | 824.8 | 787.8 | 2,198.1 | 2,227.4 | ||||||||||||||||||||||||||||
Used vehicle retail | 380.9 | 334.6 | 1,085.7 | 977.9 | ||||||||||||||||||||||||||||
Used vehicle wholesale | 28.4 | 35.2 | 85.3 | 94.3 | ||||||||||||||||||||||||||||
Finance and insurance | 65.2 | 60.5 | 180.9 | 167.1 | ||||||||||||||||||||||||||||
Service, body and parts | 129.2 | 114.8 | 374.2 | 340.8 | ||||||||||||||||||||||||||||
Fleet and other | 9.2 | 3.5 | 38.1 | 22.0 | ||||||||||||||||||||||||||||
1,437.7 | 1,336.4 | 3,962.3 | 3,829.5 | |||||||||||||||||||||||||||||
Luxury | 463,518 | 392,537 | 1,246,484 | 1,111,215 | ||||||||||||||||||||||||||||
New vehicle | 387.0 | 347.6 | 1,110.2 | 988.0 | ||||||||||||||||||||||||||||
Used vehicle retail | 206.7 | 182.5 | 596.0 | 510.3 | ||||||||||||||||||||||||||||
Used vehicle wholesale | 16.4 | 19.9 | 59.0 | 54.4 | ||||||||||||||||||||||||||||
Finance and insurance | 19.2 | 16.4 | 54.1 | 44.6 | ||||||||||||||||||||||||||||
Service, body and parts | 84.9 | 76.9 | 248.0 | 218.6 | ||||||||||||||||||||||||||||
Fleet and other | 15.2 | 9.6 | 81.7 | 31.0 | ||||||||||||||||||||||||||||
729.4 | 652.9 | 2,149.0 | 1,846.9 | |||||||||||||||||||||||||||||
2,681,783 | 2,269,640 | 7,386,169 | 6,383,690 | 3,324.9 | 3,087.1 | 9,377.1 | 8,840.0 | |||||||||||||||||||||||||
Corporate and other | (1,441 | ) | 327 | (2,690 | ) | 2,477 | 7.5 | 4.9 | 26.7 | 8.2 | ||||||||||||||||||||||
$ | 2,680,342 | $ | 2,269,967 | $ | 7,383,479 | $ | 6,386,167 | $ | 3,332.4 | $ | 3,092.0 | $ | 9,403.8 | $ | 8,848.2 | |||||||||||||||||
Segment income1: | ||||||||||||||||||||||||||||||||
Domestic | $ | 31,141 | $ | 32,292 | $ | 84,440 | $ | 84,420 | $ | 37.9 | $ | 25.3 | $ | 94.1 | $ | 79.5 | ||||||||||||||||
Import | 36,954 | 32,934 | 91,365 | 86,878 | 48.3 | 37.4 | 117.8 | 90.6 | ||||||||||||||||||||||||
Luxury | 7,515 | 7,423 | 22,542 | 21,736 | 13.0 | 11.7 | 36.5 | 30.5 | ||||||||||||||||||||||||
75,610 | 72,649 | 198,347 | 193,034 | 99.2 | 74.4 | 248.4 | 200.6 | |||||||||||||||||||||||||
Corporate and other | 34,541 | 26,794 | 111,281 | 81,881 | 50.6 | 66.8 | 129.3 | 149.5 | ||||||||||||||||||||||||
Depreciation and amortization | (14,828 | ) | (12,206 | ) | (41,598 | ) | (36,372 | ) | (20.9 | ) | (19.6 | ) | (60.9 | ) | (55.3 | ) | ||||||||||||||||
Other interest expense | (9,905 | ) | (5,647 | ) | (23,745 | ) | (16,608 | ) | (14.8 | ) | (15.0 | ) | (45.0 | ) | (40.7 | ) | ||||||||||||||||
Other income (expense), net | 1,125 | (1,513 | ) | 11,357 | (4,534 | ) | ||||||||||||||||||||||||||
Other income, net | 3.3 | 2.4 | 8.9 | 5.4 | ||||||||||||||||||||||||||||
Income before income taxes | $ | 86,543 | $ | 80,077 | $ | 255,642 | $ | 217,401 | $ | 117.4 | $ | 109.0 | $ | 280.7 | $ | 259.5 |
September 30, 2019 | December 31, 2018 | |||||||
Total assets: | ||||||||
Domestic | $ | 1,460.1 | $ | 1,488.0 | ||||
Import | 1,318.5 | 1,224.2 | ||||||
Luxury | 865.7 | 934.6 | ||||||
Corporate and other | 2,093.2 | 1,737.2 | ||||||
$ | 5,737.5 | $ | 5,384.0 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Floor plan interest expense: | ||||||||||||||||
Domestic | $ | 9,900 | $ | 6,303 | $ | 26,570 | $ | 19,031 | ||||||||
Import | 8,007 | 4,613 | 20,608 | 13,241 | ||||||||||||
Luxury | 4,494 | 2,720 | 11,018 | 8,027 | ||||||||||||
22,401 | 13,636 | 58,196 | 40,299 | |||||||||||||
Corporate and other | (11,772 | ) | (7,450 | ) | (30,183 | ) | (21,995 | ) | ||||||||
$ | 10,629 | $ | 6,186 | $ | 28,013 | $ | 18,304 |
September 30, 2019 | December 31, 2018 | |||||||
Operating lease liabilities: | ||||||||
Current portion included in accrued liabilities | $ | 25.8 | $ | — | ||||
Noncurrent operating lease liabilities | 235.2 | — | ||||||
Total operating lease liabilities | 261.0 | — | ||||||
Financing lease liabilities: | ||||||||
Current portion included in current maturities of long-term debt | 1.0 | 2.0 | ||||||
Long-term portion of lease liabilities in long-term debt | 29.3 | 28.8 | ||||||
Total financing lease liabilities 1 | 30.3 | 30.8 | ||||||
Total lease liabilities | $ | 291.3 | $ | 30.8 | ||||
Weighted-average remaining lease term: | ||||||||
Operating leases | 13 years | |||||||
Finance leases | 13 years | |||||||
Weighted-average discount rate: | ||||||||
Operating leases | 5.08 | % | ||||||
Finance leases | 5.81 | % |
September 30, 2017 | December 31, 2016 | |||||||
Total assets: | ||||||||
Domestic | $ | 1,256,960 | $ | 1,225,387 | ||||
Import | 1,067,466 | 959,355 | ||||||
Luxury | 590,515 | 511,779 | ||||||
Corporate and other | 1,456,652 | 1,147,629 | ||||||
$ | 4,371,593 | $ | 3,844,150 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
2019 | 2019 | |||||||
Operating lease cost 1 | $ | 12.2 | $ | 36.5 | ||||
Variable lease cost 2 | 0.1 | 1.3 | ||||||
Sublease income | (1.2 | ) | $ | (3.4 | ) | |||
Total lease costs | $ | 11.1 | 34.4 |
Operating Leases | ||||
Remainder of 2019 | $ | 9.9 | ||
Year Ending December 31, | ||||
2020 | 37.6 | |||
2021 | 34.4 | |||
2022 | 31.5 | |||
2023 | 26.4 | |||
Thereafter | 228.2 | |||
Total minimum lease payments | 368.0 | |||
Less: | ||||
Present value adjustment | (107.0 | ) | ||
Operating lease liabilities | $ | 261.0 |
Nine Months Ended September 30, | 2019 | |||
Revenue | $ | 100.7 | ||
Operating income | 1.9 |
Revenue | $ | 281,416 | |
Net income | $ | 4,378 |
Consideration | ||||
Cash paid, net of cash acquired | $ | 142.8 | ||
Debt issued | 26.4 | |||
$ | 169.2 |
Consideration | ||||
Cash paid, net of cash acquired | $ | 400,558 | ||
Equity securities issued 1 | 2,137 | |||
Debt issued | 1,748 | |||
$ | 404,443 |
Assets Acquired and Liabilities Assumed | ||||
Inventories, net | $ | 60.0 | ||
Property and equipment, net | 5.0 | |||
Other non-current assets | 131.9 | |||
Other long-term liabilities | (27.7 | ) | ||
$ | 169.2 |
Assets Acquired and Liabilities Assumed | ||||
Trade receivables, net | $ | 15,554 | ||
Inventories | 190,079 | |||
Franchise value | — | |||
Property and equipment | 57,217 | |||
Other assets | 249,725 | |||
Floor plan notes payable | (75,065 | ) | ||
Debt and capital lease obligations | (11,837 | ) | ||
Other liabilities | (21,230 | ) | ||
$ | 404,443 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Revenue | $ | 3,337.1 | $ | 3,188.9 | $ | 9,557.0 | $ | 9,326.8 | ||||||||
Net income | 85.2 | 93.6 | 204.0 | 205.6 | ||||||||||||
Basic net income per share | 3.67 | 3.87 | 8.79 | 8.34 | ||||||||||||
Diluted net income per share | 3.63 | 3.86 | 8.74 | 8.30 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Revenue | $ | 2,773,082 | $ | 2,792,994 | $ | 8,032,963 | $ | 7,941,561 | ||||||||
Net income | 53,488 | 59,925 | 164,938 | 163,473 | ||||||||||||
Basic net income per share | 2.14 | 2.38 | 6.57 | 6.41 | ||||||||||||
Diluted net income per share | 2.13 | 2.37 | 6.56 | 6.39 |
Three Months Ended September 30, 2017 | Revenues | Percent of Total Revenues | Gross Profit | Gross Profit Margin | Percent of Total Gross Profit | ||||||||||||
New vehicle | $ | 1,553,511 | 58.0 | % | $ | 88,045 | 5.7 | % | 21.8 | % | |||||||
Used vehicle retail | 679,180 | 25.3 | 78,658 | 11.6 | 19.5 | ||||||||||||
Used vehicle wholesale | 65,739 | 2.5 | 1,174 | 1.8 | 0.3 | ||||||||||||
Finance and insurance 1 | 101,044 | 3.8 | 101,044 | 100.0 | 25.1 | ||||||||||||
Service, body and parts | 265,683 | 9.9 | 132,492 | 49.9 | 32.9 | ||||||||||||
Fleet and other | 15,185 | 0.5 | 1,608 | 10.6 | 0.4 | ||||||||||||
$ | 2,680,342 | 100.0 | % | $ | 403,021 | 15.0 | % | 100.0 | % |
Three Months Ended September 30, 2016 | Revenues | Percent of Total Revenues | Gross Profit | Gross Profit Margin | Percent of Total Gross Profit | ||||||||||||
New vehicle | $ | 1,297,511 | 57.2 | % | $ | 75,843 | 5.8 | % | 22.5 | % | |||||||
Used vehicle retail | 580,885 | 25.6 | 68,809 | 11.8 | 20.4 | ||||||||||||
Used vehicle wholesale | 75,271 | 3.3 | 918 | 1.2 | 0.3 | ||||||||||||
Finance and insurance 1 | 87,709 | 3.9 | 87,709 | 100.0 | 26.0 | ||||||||||||
Service, body and parts | 217,148 | 9.6 | 104,342 | 48.1 | 30.9 | ||||||||||||
Fleet and other | 11,443 | 0.4 | (360 | ) | (3.1 | ) | (0.1 | ) | |||||||||
$ | 2,269,967 | 100.0 | % | $ | 337,261 | 14.9 | % | 100.0 | % |
Nine Months Ended September 30, 2017 | Revenues | Percent of Total Revenues | Gross Profit | Gross Profit Margin | Percent of Total Gross Profit | ||||||||||||
New vehicle | $ | 4,147,870 | 56.2 | % | $ | 238,702 | 5.8 | % | 21.3 | % | |||||||
Used vehicle retail | 1,915,038 | 25.9 | 221,947 | 11.6 | 19.8 | ||||||||||||
Used vehicle wholesale | 206,754 | 2.8 | 4,403 | 2.1 | 0.4 | ||||||||||||
Finance and insurance 1 | 282,672 | 3.8 | 282,672 | 100.0 | 25.2 | ||||||||||||
Service, body and parts | 744,262 | 10.1 | 368,166 | 49.5 | 32.9 | ||||||||||||
Fleet and other | 86,883 | 1.2 | 4,054 | 4.7 | 0.4 | ||||||||||||
$ | 7,383,479 | 100.0 | % | $ | 1,119,944 | 15.2 | % | 100.0 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||
Revenues | ||||||||||||||||||||||
New vehicle | $ | 1,824.8 | $ | 1,733.0 | 5.3 | % | $ | 4,993.3 | $ | 4,914.5 | 1.6 | % | ||||||||||
Used vehicle retail | 916.3 | 805.9 | 13.7 | 2,632.4 | 2,325.6 | 13.2 | ||||||||||||||||
Finance and insurance | 136.3 | 121.1 | 12.6 | 382.7 | 342.1 | 11.9 | ||||||||||||||||
Service, body and parts | 340.5 | 311.3 | 9.4 | 993.3 | 908.4 | 9.3 | ||||||||||||||||
Total Revenues | 3,332.4 | 3,092.0 | 7.8 | 9,403.8 | 8,848.2 | 6.3 | ||||||||||||||||
Gross profit | ||||||||||||||||||||||
New vehicle | $ | 100.0 | $ | 100.9 | (0.9) | % | $ | 281.4 | $ | 289.3 | (2.7) | % | ||||||||||
Used vehicle retail | 99.7 | 86.4 | 15.4 | 277.4 | 247.1 | 12.3 | ||||||||||||||||
Finance and insurance | 136.3 | 121.1 | 12.6 | 382.7 | 342.1 | 11.9 | ||||||||||||||||
Service, body and parts | 171.5 | 154.5 | 11.0 | 501.1 | 446.6 | 12.2 | ||||||||||||||||
Total Gross Profit | 510.9 | 466.2 | 9.6 | 1,455.2 | 1,335.1 | 9.0 | ||||||||||||||||
Gross profit margins | ||||||||||||||||||||||
New vehicle | 5.5 | % | 5.8 | % | (30 | ) bps | 5.6 | % | 5.9 | % | (30 | ) bps | ||||||||||
Used vehicle retail | 10.9 | 10.7 | 20 | 10.5 | 10.6 | (10 | ) | |||||||||||||||
Finance and insurance | 100.0 | 100.0 | — | 100.0 | 100.0 | — | ||||||||||||||||
Service, body and parts | 50.4 | 49.6 | 80 | 50.4 | 49.2 | 120 | ||||||||||||||||
Total Gross Profit Margin | 15.3 | 15.1 | 20 | 15.5 | 15.1 | 40 | ||||||||||||||||
Retail units sold | ||||||||||||||||||||||
New vehicles | 48,508 | 48,790 | (0.6) | % | 134,090 | 139,314 | (3.7) | % | ||||||||||||||
Used vehicles | 44,143 | 39,751 | 11.0 | 127,683 | 114,961 | 11.1 | ||||||||||||||||
Average selling price per retail unit | ||||||||||||||||||||||
New vehicles | $ | 37,618 | $ | 35,519 | 5.9 | % | $ | 37,238 | $ | 35,276 | 5.6 | % | ||||||||||
Used vehicles | 20,756 | 20,274 | 2.4 | 20,617 | 20,229 | 1.9 | ||||||||||||||||
Average gross profit per retail unit | ||||||||||||||||||||||
New vehicles | $ | 2,061 | $ | 2,068 | (0.3 | )% | $ | 2,098 | $ | 2,077 | 1.0 | % | ||||||||||
Used vehicles | 2,258 | 2,172 | 4.0 | 2,173 | 2,149 | 1.1 | ||||||||||||||||
Finance and insurance | 1,471 | 1,367 | 7.6 | 1,462 | 1,345 | 8.7 |
Nine Months Ended September 30, 2016 | Revenues | Percent of Total Revenues | Gross Profit | Gross Profit Margin | Percent of Total Gross Profit | ||||||||||||
New vehicle | $ | 3,602,603 | 56.4 | % | $ | 215,471 | 6.0 | % | 22.3 | % | |||||||
Used vehicle retail | 1,667,258 | 26.1 | 200,311 | 12.0 | 20.7 | ||||||||||||
Used vehicle wholesale | 207,131 | 3.2 | 4,234 | 2.0 | 0.4 | ||||||||||||
Finance and insurance 1 | 246,390 | 3.9 | 246,390 | 100.0 | 25.5 | ||||||||||||
Service, body and parts | 616,088 | 9.6 | 299,060 | 48.5 | 30.9 | ||||||||||||
Fleet and other | 46,697 | 0.8 | 1,013 | 2.2 | 0.2 | ||||||||||||
$ | 6,386,167 | 100.0 | % | $ | 966,479 | 15.1 | % | 100.0 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||
Revenues | ||||||||||||||||||||||
New vehicle | $ | 1,772.9 | $ | 1,695.7 | 4.6 | % | $ | 4,801.1 | $ | 4,765.7 | 0.7 | % | ||||||||||
Used vehicle retail | 898.8 | 788.2 | 14.0 | 2,543.2 | 2,257.9 | 12.6 | ||||||||||||||||
Finance and insurance | 133.0 | 118.3 | 12.4 | 371.3 | 331.9 | 11.9 | ||||||||||||||||
Service, body and parts | 332.0 | 303.2 | 9.5 | 955.3 | 879.0 | 8.7 | ||||||||||||||||
Total Revenues | 3,249.7 | 3,018.8 | 7.6 | 9,060.1 | 8,573.3 | 5.7 | ||||||||||||||||
Gross profit | ||||||||||||||||||||||
New vehicle | $ | 96.6 | $ | 98.6 | (2.0) | % | $ | 269.5 | $ | 280.0 | (3.8) | % | ||||||||||
Used vehicle retail | 97.7 | 85.4 | 14.4 | 269.9 | 241.7 | 11.7 | ||||||||||||||||
Finance and insurance | 133.0 | 118.3 | 12.4 | 371.3 | 331.9 | 11.9 | ||||||||||||||||
Service, body and parts | 167.6 | 150.9 | 11.1 | 483.0 | 433.4 | 11.4 | ||||||||||||||||
Total Gross Profit | 498.5 | 456.8 | 9.1 | 1,405.9 | 1,296.9 | 8.4 | ||||||||||||||||
Gross profit margins | ||||||||||||||||||||||
New vehicle | 5.4 | % | 5.8 | % | (40 | ) bps | 5.6 | % | 5.9 | % | (30 | ) bps | ||||||||||
Used vehicle retail | 10.9 | 10.8 | 10 | 10.6 | 10.7 | (10 | ) | |||||||||||||||
Finance and insurance | 100.0 | 100.0 | — | 100.0 | 100.0 | — | ||||||||||||||||
Service, body and parts | 50.5 | 49.8 | 70 | 50.6 | 49.3 | 130 | ||||||||||||||||
Total Gross Profit Margin | 15.3 | 15.1 | 20 | 15.5 | 15.1 | 40 | ||||||||||||||||
Retail units sold | ||||||||||||||||||||||
New vehicles | 47,141 | 47,590 | (0.9) | % | 129,001 | 134,509 | (4.1) | % | ||||||||||||||
Used vehicles | 43,305 | 38,717 | 11.9 | 123,555 | 111,094 | 11.2 | ||||||||||||||||
Average selling price per retail unit | ||||||||||||||||||||||
New vehicles | $ | 37,609 | $ | 35,631 | 5.6 | % | $ | 37,217 | $ | 35,430 | 5.0 | % | ||||||||||
Used vehicles | 20,754 | 20,358 | 1.9 | 20,584 | 20,324 | 1.3 | ||||||||||||||||
Average gross profit per retail unit | ||||||||||||||||||||||
New vehicles | $ | 2,049 | $ | 2,073 | (1.2 | )% | $ | 2,089 | $ | 2,081 | 0.4 | % | ||||||||||
Used vehicles | 2,257 | 2,205 | 2.4 | 2,184 | 2,175 | 0.4 | ||||||||||||||||
Finance and insurance | 1,471 | 1,371 | 7.3 | 1,470 | 1,351 | 8.8 |
Three Months Ended September 30, | Increase (Decrease) | % Increase (Decrease) | |||||||||||||
(Dollars in thousands, except per unit amounts) | 2017 | 2016 | |||||||||||||
Reported | |||||||||||||||
Revenue | $ | 1,553,511 | $ | 1,297,511 | $ | 256,000 | 19.7 | % | |||||||
Gross profit | $ | 88,045 | $ | 75,843 | $ | 12,202 | 16.1 | ||||||||
Gross margin | 5.7 | % | 5.8 | % | (10 | )bp | 1 | ||||||||
Retail units sold | 45,452 | 38,417 | 7,035 | 18.3 | |||||||||||
Average selling price per retail unit | $ | 34,179 | $ | 33,774 | $ | 405 | 1.2 | ||||||||
Average gross profit per retail unit | $ | 1,937 | $ | 1,974 | $ | (37 | ) | (1.9 | ) | ||||||
Same store | |||||||||||||||
Revenue | $ | 1,288,680 | $ | 1,280,030 | $ | 8,650 | 0.7 | ||||||||
Gross profit | $ | 72,246 | $ | 74,903 | $ | (2,657 | ) | (3.5 | ) | ||||||
Gross margin | 5.6 | % | 5.9 | % | (30 | )bp | |||||||||
Retail units sold | 37,762 | 37,870 | (108 | ) | (0.3 | ) | |||||||||
Average selling price per retail unit | $ | 34,126 | $ | 33,801 | $ | 325 | 1.0 | ||||||||
Average gross profit per retail unit | $ | 1,913 | $ | 1,978 | $ | (65 | ) | (3.3 | ) |
Nine Months Ended September 30, | Increase (Decrease) | % Increase (Decrease) | |||||||||||||
(Dollars in thousands, except per unit amounts) | 2017 | 2016 | |||||||||||||
Reported | |||||||||||||||
Revenue | $ | 4,147,870 | $ | 3,602,603 | $ | 545,267 | 15.1 | % | |||||||
Gross profit | $ | 238,702 | $ | 215,471 | $ | 23,231 | 10.8 | ||||||||
Gross margin | 5.8 | % | 6.0 | % | (20 | )bp | 1 | ||||||||
Retail units sold | 121,944 | 107,225 | 14,719 | 13.7 | |||||||||||
Average selling price per retail unit | $ | 34,015 | $ | 33,599 | $ | 416 | 1.2 | ||||||||
Average gross profit per retail unit | $ | 1,957 | $ | 2,010 | $ | (53 | ) | (2.6 | ) | ||||||
Same store | |||||||||||||||
Revenue | $ | 3,602,946 | $ | 3,582,725 | $ | 20,221 | 0.6 | ||||||||
Gross profit | $ | 207,549 | $ | 214,415 | $ | (6,866 | ) | (3.2 | ) | ||||||
Gross margin | 5.8 | % | 6.0 | % | (20 | )bp | |||||||||
Retail units sold | 105,870 | 106,599 | (729 | ) | (0.7 | ) | |||||||||
Average selling price per retail unit | $ | 34,032 | $ | 33,609 | $ | 423 | 1.3 | ||||||||
Average gross profit per retail unit | $ | 1,960 | $ | 2,011 | $ | (51 | ) | (2.5 | ) |
Three months ended September 30, 2017 compared to the same period of 2016 | National growth in the three months ended September 30, 2017 compared to the same period of 2016 ¹ | Nine months ended September 30, 2017 compared to the same period of 2016 | National growth in the nine months ended September 30, 2017 compared to the same period of 2016 ¹ | |||||||||
Domestic brand same store unit sales change | (5.8 | )% | (2.9 | )% | (3.1 | )% | (3.6 | )% | ||||
Import brand same store unit sales change | 4.5 | 0.6 | 2.7 | (0.6 | ) | |||||||
Luxury brand same store unit sales change | (7.8 | ) | (2.7 | ) | (9.7 | ) | 0.3 | |||||
Overall | (0.3 | ) | (1.2 | ) | (0.7 | ) | (1.9 | ) |
Three Months Ended September 30, | Increase (Decrease) | % Increase (Decrease) | |||||||||||||
(Dollars in thousands, except per unit amounts) | 2017 | 2016 | |||||||||||||
Reported | |||||||||||||||
Retail revenue | $ | 679,180 | $ | 580,885 | $ | 98,295 | 16.9 | % | |||||||
Retail gross profit | $ | 78,658 | $ | 68,809 | $ | 9,849 | 14.3 | ||||||||
Retail gross margin | 11.6 | % | 11.8 | % | (20 | )bp | |||||||||
Retail units sold | 34,717 | 29,636 | 5,081 | 17.1 | |||||||||||
Average selling price per retail unit | $ | 19,563 | $ | 19,601 | $ | (38 | ) | (0.2 | ) | ||||||
Average gross profit per retail unit | $ | 2,266 | $ | 2,322 | $ | (56 | ) | (2.4 | ) | ||||||
Same store | |||||||||||||||
Retail revenue | $ | 593,285 | $ | 572,862 | $ | 20,423 | 3.6 | ||||||||
Retail gross profit | $ | 71,248 | $ | 68,215 | $ | 3,033 | 4.4 | ||||||||
Retail gross margin | 12.0 | % | 11.9 | % | 10 | bp | |||||||||
Retail units sold | 30,115 | 29,171 | 944 | 3.2 | |||||||||||
Average selling price per retail unit | $ | 19,701 | $ | 19,638 | $ | 63 | 0.3 | ||||||||
Average gross profit per retail unit | $ | 2,366 | $ | 2,338 | $ | 28 | 1.2 |
Nine Months Ended September 30, | Increase (Decrease) | % Increase (Decrease) | |||||||||||||
(Dollars in thousands, except per unit amounts) | 2017 | 2016 | |||||||||||||
Reported | |||||||||||||||
Retail revenue | $ | 1,915,038 | $ | 1,667,258 | $ | 247,780 | 14.9 | % | |||||||
Retail gross profit | $ | 221,947 | $ | 200,311 | $ | 21,636 | 10.8 | ||||||||
Retail gross margin | 11.6 | % | 12.0 | % | (40 | )bp | |||||||||
Retail units sold | 97,671 | 84,783 | 12,888 | 15.2 | |||||||||||
Average selling price per retail unit | $ | 19,607 | $ | 19,665 | $ | (58 | ) | (0.3 | ) | ||||||
Average gross profit per retail unit | $ | 2,272 | $ | 2,363 | $ | (91 | ) | (3.9 | ) | ||||||
Same store | |||||||||||||||
Retail revenue | $ | 1,730,495 | $ | 1,656,119 | $ | 74,376 | 4.5 | ||||||||
Retail gross profit | $ | 205,438 | $ | 199,432 | $ | 6,006 | 3.0 | ||||||||
Retail gross margin | 11.9 | % | 12.0 | % | (10 | )bp | |||||||||
Retail units sold | 87,553 | 84,148 | 3,405 | 4.0 | |||||||||||
Average selling price per retail unit | $ | 19,765 | $ | 19,681 | $ | 84 | 0.4 | ||||||||
Average gross profit per retail unit | $ | 2,346 | $ | 2,370 | $ | (24 | ) | (1.0 | ) |
Three months ended September 30, 2017 compared to the same period of 2016 | Nine months ended September 30, 2017 compared to the same period of 2016 | |||||
Certified pre-owned vehicles | (5.3 | )% | (1.2 | )% | ||
Core vehicles | 7.6 | 6.4 | ||||
Value autos | 9.3 | 10.8 | ||||
Overall | 3.6 | 4.5 |
Three Months Ended September 30, | Increase (Decrease) | % Increase (Decrease) | |||||||||||||
(Dollars in thousands, except per unit amounts) | 2017 | 2016 | |||||||||||||
Reported | |||||||||||||||
Wholesale revenue | $ | 65,739 | $ | 75,271 | $ | (9,532 | ) | (12.7 | )% | ||||||
Wholesale gross profit | $ | 1,174 | $ | 918 | $ | 256 | 27.9 | ||||||||
Wholesale gross margin | 1.8 | % | 1.2 | % | 60 | bp | |||||||||
Wholesale units sold | 11,122 | 10,853 | 269 | 2.5 | |||||||||||
Average selling price per wholesale unit | $ | 5,911 | $ | 6,936 | $ | (1,025 | ) | (14.8 | ) | ||||||
Average gross profit per retail unit | $ | 106 | $ | 85 | $ | 21 | 24.7 |
Nine Months Ended September 30, | Increase (Decrease) | % Increase (Decrease) | |||||||||||||
(Dollars in thousands, except per unit amounts) | 2017 | 2016 | |||||||||||||
Reported | |||||||||||||||
Wholesale revenue | $ | 206,754 | $ | 207,131 | $ | (377 | ) | (0.2 | )% | ||||||
Wholesale gross profit | $ | 4,403 | $ | 4,234 | $ | 169 | 4.0 | ||||||||
Wholesale gross margin | 2.1 | % | 2.0 | % | 10 | bp | |||||||||
Wholesale units sold | 32,868 | 30,140 | 2,728 | 9.1 | |||||||||||
Average selling price per wholesale unit | $ | 6,290 | $ | 6,872 | $ | (582 | ) | (8.5 | ) | ||||||
Average gross profit per retail unit | $ | 134 | $ | 140 | $ | (6 | ) | (4.3 | ) |
Three Months Ended September 30, | Increase (Decrease) | % Increase (Decrease) | |||||||||||||
(Dollars in thousands, except per unit amounts) | 2017 | 2016 | |||||||||||||
Reported | |||||||||||||||
Revenue | $ | 101,044 | $ | 87,709 | $ | 13,335 | 15.2 | % | |||||||
Average finance and insurance per retail unit | $ | 1,260 | $ | 1,289 | $ | (29 | ) | (2.2 | )% | ||||||
Same store | |||||||||||||||
Revenue | $ | 87,371 | $ | 86,951 | $ | 420 | 0.5 | % | |||||||
Average finance and insurance per retail unit | $ | 1,287 | $ | 1,297 | $ | (10 | ) | (0.8 | )% |
Nine Months Ended September 30, | Increase | % Increase | |||||||||||||
(Dollars in thousands, except per unit amounts) | 2017 | 2016 | |||||||||||||
Reported | |||||||||||||||
Revenue | $ | 282,672 | $ | 246,390 | $ | 36,282 | 14.7 | % | |||||||
Average finance and insurance per retail unit | $ | 1,287 | $ | 1,283 | $ | 4 | 0.3 | % | |||||||
Same store | |||||||||||||||
Revenue | $ | 257,155 | $ | 245,397 | $ | 11,758 | 4.8 | % | |||||||
Average finance and insurance per retail unit | $ | 1,329 | $ | 1,287 | $ | 42 | 3.3 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||
Finance and insurance | 75 | % | 76 | % | 76 | % | 77 | % | ||||
Service contracts | 45 | 44 | 45 | 44 | ||||||||
Lifetime lube, oil and filter contracts | 26 | 27 | 26 | 27 |
Three Months Ended September 30, | Increase | % Increase | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | |||||||||||||
Reported | |||||||||||||||
Customer pay | $ | 143,842 | $ | 118,915 | $ | 24,927 | 21.0 | % | |||||||
Warranty | 63,350 | 53,203 | 10,147 | 19.1 | |||||||||||
Wholesale parts | 39,463 | 30,543 | 8,920 | 29.2 | |||||||||||
Body shop | 19,028 | 14,487 | 4,541 | 31.3 | |||||||||||
Total service, body and parts | $ | 265,683 | $ | 217,148 | $ | 48,535 | 22.4 | % | |||||||
Service, body and parts gross profit | $ | 132,492 | $ | 104,342 | $ | 28,150 | 27.0 | % | |||||||
Service, body and parts gross margin | 49.9 | % | 48.1 | % | 180 bp | ||||||||||
Same store | |||||||||||||||
Customer pay | $ | 123,001 | $ | 117,904 | $ | 5,097 | 4.3 | % | |||||||
Warranty | 52,836 | 52,801 | 35 | 0.1 | |||||||||||
Wholesale parts | 30,836 | 29,844 | 992 | 3.3 | |||||||||||
Body shop | 14,683 | 13,842 | 841 | 6.1 | |||||||||||
Total service, body and parts | $ | 221,356 | $ | 214,391 | $ | 6,965 | 3.2 | % | |||||||
Service, body and parts gross profit | $ | 109,591 | $ | 103,025 | $ | 6,566 | 6.4 | % | |||||||
Service, body and parts gross margin | 49.5 | % | 48.1 | % | 140 bp |
Nine Months Ended September 30, | Increase | % Increase | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | |||||||||||||
Reported | |||||||||||||||
Customer pay | $ | 402,313 | $ | 339,640 | $ | 62,673 | 18.5 | % | |||||||
Warranty | 174,552 | 145,747 | 28,805 | 19.8 | |||||||||||
Wholesale parts | 111,796 | 88,710 | 23,086 | 26.0 | |||||||||||
Body shop | 55,601 | 41,991 | 13,610 | 32.4 | |||||||||||
Total service, body and parts | $ | 744,262 | $ | 616,088 | $ | 128,174 | 20.8 | % | |||||||
Service, body and parts gross profit | $ | 368,166 | $ | 299,060 | $ | 69,106 | 23.1 | % | |||||||
Service, body and parts gross margin | 49.5 | % | 48.5 | % | 100 | bp | |||||||||
Same store | |||||||||||||||
Customer pay | $ | 358,724 | $ | 338,078 | $ | 20,646 | 6.1 | % | |||||||
Warranty | 152,738 | 145,140 | 7,598 | 5.2 | |||||||||||
Wholesale parts | 92,124 | 87,958 | 4,166 | 4.7 | |||||||||||
Body shop | 44,723 | 40,966 | 3,757 | 9.2 | |||||||||||
Total service, body and parts | $ | 648,309 | $ | 612,142 | $ | 36,167 | 5.9 | % | |||||||
Service, body and parts gross profit | $ | 320,345 | $ | 297,185 | $ | 23,160 | 7.8 | % | |||||||
Service, body and parts gross margin | 49.4 | % | 48.5 | % | 90 | bp |
Three months ended September 30, 2017 compared to the same period of 2016 | Nine months ended September 30, 2017 compared to the same period of 2016 | |||||
Domestic | 10.0 | % | 6.5 | % | ||
Import | (11.5 | ) | (0.3 | ) | ||
Luxury | 9.8 | 13.8 |
Three Months Ended September 30, | Increase (Decrease) | % Increase | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | |||||||||||||
Revenues: | |||||||||||||||
Domestic | $ | 1,008,310 | $ | 893,156 | $ | 115,154 | 12.9 | % | |||||||
Import | 1,209,955 | 983,947 | 226,008 | 23.0 | |||||||||||
Luxury | 463,518 | 392,537 | 70,981 | 18.1 | |||||||||||
2,681,783 | 2,269,640 | 412,143 | 18.2 | ||||||||||||
Corporate and other | (1,441 | ) | 327 | (1,768 | ) | NM | |||||||||
$ | 2,680,342 | $ | 2,269,967 | $ | 410,375 | 18.1 | % |
Nine Months Ended September 30, | Increase (Decrease) | % Increase | Three Months Ended September 30, | Increase | % Increase | |||||||||||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | ||||||||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | Increase | % Increase | ||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||
Domestic | $ | 2,863,018 | $ | 2,495,468 | $ | 367,550 | 14.7 | % | $ | 1,157.8 | $ | 1,097.8 | $ | 60.0 | 5.5 | % | ||||||||||||||
Import | 3,276,667 | 2,777,007 | 499,660 | 18.0 | 1,437.7 | 1,336.4 | 101.3 | 7.6 | ||||||||||||||||||||||
Luxury | 1,246,484 | 1,111,215 | 135,269 | 12.2 | 729.4 | 652.9 | 76.5 | 11.7 | ||||||||||||||||||||||
7,386,169 | 6,383,690 | 1,002,479 | 15.7 | 3,324.9 | 3,087.1 | 237.8 | 7.7 | |||||||||||||||||||||||
Corporate and other | (2,690 | ) | 2,477 | (5,167 | ) | NM | 7.5 | 4.9 | 2.6 | NM | ||||||||||||||||||||
$ | 7,383,479 | $ | 6,386,167 | $ | 997,312 | 15.6 | % | $ | 3,332.4 | $ | 3,092.0 | $ | 240.4 | 7.8 | % |
Three Months Ended September 30, | Increase (Decrease) | % Increase (Decrease) | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | |||||||||||||
Segment income1: | |||||||||||||||
Domestic | $ | 31,141 | $ | 32,292 | $ | (1,151 | ) | (3.6 | )% | ||||||
Import | 36,954 | 32,934 | 4,020 | 12.2 | |||||||||||
Luxury | 7,515 | 7,423 | 92 | 1.2 | |||||||||||
75,610 | 72,649 | 2,961 | 4.1 | ||||||||||||
Corporate and other | 34,541 | 26,794 | 7,747 | 28.9 | |||||||||||
Depreciation and amortization | (14,828 | ) | (12,206 | ) | 2,622 | 21.5 | |||||||||
Other interest expense | (9,905 | ) | (5,647 | ) | 4,258 | 75.4 | |||||||||
Other income (expense), net | 1,125 | (1,513 | ) | 2,638 | NM | ||||||||||
Income before income taxes | $ | 86,543 | $ | 80,077 | $ | 6,466 | 8.1 | % |
Nine Months Ended September 30, | Increase | % Increase | |||||||||||||
(Dollars in millions) | 2019 | 2018 | |||||||||||||
Revenues: | |||||||||||||||
Domestic | $ | 3,265.8 | $ | 3,163.6 | $ | 102.2 | 3.2 | % | |||||||
Import | 3,962.3 | 3,829.5 | 132.8 | 3.5 | |||||||||||
Luxury | 2,149.0 | 1,846.9 | 302.1 | 16.4 | |||||||||||
9,377.1 | 8,840.0 | 537.1 | 6.1 | ||||||||||||
Corporate and other | 26.7 | 8.2 | 18.5 | NM | |||||||||||
$ | 9,403.8 | $ | 8,848.2 | $ | 555.6 | 6.3 | % |
Nine Months Ended September 30, | Increase | % Increase | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | |||||||||||||
Segment income1: | |||||||||||||||
Domestic | $ | 84,440 | $ | 84,420 | $ | 20 | — | % | |||||||
Import | 91,365 | 86,878 | 4,487 | 5.2 | |||||||||||
Luxury | 22,542 | 21,736 | 806 | 3.7 | |||||||||||
198,347 | 193,034 | 5,313 | 2.8 | ||||||||||||
Corporate and other | 111,281 | 81,881 | 29,400 | 35.9 | |||||||||||
Depreciation and amortization | (41,598 | ) | (36,372 | ) | 5,226 | 14.4 | |||||||||
Other interest expense | (23,745 | ) | (16,608 | ) | 7,137 | 43.0 | |||||||||
Other income (expense), net | 11,357 | (4,534 | ) | 15,891 | NM | ||||||||||
Income before income taxes | $ | 255,642 | $ | 217,401 | $ | 38,241 | 17.6 | % |
Three Months Ended September 30, | Increase (Decrease) | % Increase (Decrease) | |||||||||||||
(Dollars in millions) | 2019 | 2018 | |||||||||||||
Segment income1: | |||||||||||||||
Domestic | $ | 37.9 | $ | 25.3 | $ | 12.6 | 49.8 | % | |||||||
Import | 48.3 | 37.4 | 10.9 | 29.1 | |||||||||||
Luxury | 13.0 | 11.7 | 1.3 | 11.1 | |||||||||||
99.2 | 74.4 | 24.8 | 33.3 | ||||||||||||
Corporate and other | 50.6 | 66.8 | (16.2 | ) | (24.3 | ) | |||||||||
Depreciation and amortization | (20.9 | ) | (19.6 | ) | 1.3 | 6.6 | |||||||||
Other interest expense | (14.8 | ) | (15.0 | ) | (0.2 | ) | (1.3 | ) | |||||||
Other income, net | 3.3 | 2.4 | 0.9 | NM | |||||||||||
Income before income taxes | $ | 117.4 | $ | 109.0 | $ | 8.4 | 7.7 | % |
Three Months Ended September 30, | Increase | % Increase | Nine Months Ended September 30, | Increase (Decrease) | % Increase (Decrease) | ||||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||||||||
Retail new vehicle unit sales: | |||||||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | Increase (Decrease) | % Increase (Decrease) | |||||||||||||||||||||||
Segment income1: | |||||||||||||||||||||||||||
Domestic | 13,911 | 12,735 | 1,176 | 9.2 | % | $ | 94.1 | $ | 79.5 | $ | 14.6 | 18.4 | % | ||||||||||||||
Import | 26,621 | 21,467 | 5,154 | 24.0 | 117.8 | 90.6 | 27.2 | 30.0 | |||||||||||||||||||
Luxury | 5,029 | 4,287 | 742 | 17.3 | 36.5 | 30.5 | 6.0 | 19.7 | |||||||||||||||||||
45,561 | 38,489 | 7,072 | 18.4 | 248.4 | 200.6 | 47.8 | 23.8 | ||||||||||||||||||||
Allocated to management | (109 | ) | (72 | ) | 37 | NM | |||||||||||||||||||||
45,452 | 38,417 | 7,035 | 18.3 | % | |||||||||||||||||||||||
Corporate and other | 129.3 | 149.5 | (20.2 | ) | (13.5 | ) | |||||||||||||||||||||
Depreciation and amortization | (60.9 | ) | (55.3 | ) | 5.6 | 10.1 | |||||||||||||||||||||
Other interest expense | (45.0 | ) | (40.7 | ) | 4.3 | 10.6 | |||||||||||||||||||||
Other income, net | 8.9 | 5.4 | 3.5 | NM | |||||||||||||||||||||||
Income before income taxes | $ | 280.7 | $ | 259.5 | $ | 21.2 | 8.2 | % |
Three Months Ended September 30, | Increase (Decrease) | % Increase (Decrease) | ||||||||||
2019 | 2018 | |||||||||||
Retail new vehicle unit sales: | ||||||||||||
Domestic | 14,284 | 14,695 | (411 | ) | (2.8 | )% | ||||||
Import | 26,994 | 27,295 | (301 | ) | (1.1 | ) | ||||||
Luxury | 7,342 | 6,860 | 482 | 7.0 | ||||||||
48,620 | 48,850 | (230 | ) | (0.5 | ) | |||||||
Allocated to management | (112 | ) | (60 | ) | 52 | NM | ||||||
48,508 | 48,790 | (282 | ) | (0.6 | )% |
Nine Months Ended September 30, | Increase | % Increase | Nine Months Ended September 30, | Increase (Decrease) | % Increase (Decrease) | |||||||||||||||||||
2017 | 2016 | 2019 | 2018 | |||||||||||||||||||||
Retail new vehicle unit sales: | ||||||||||||||||||||||||
Domestic | 39,407 | 35,176 | 4,231 | 12.0 | % | 39,569 | 42,048 | (2,479 | ) | (5.9 | )% | |||||||||||||
Import | 69,643 | 59,581 | 10,062 | 16.9 | 74,180 | 78,311 | (4,131 | ) | (5.3 | ) | ||||||||||||||
Luxury | 13,168 | 12,667 | 501 | 4.0 | 20,566 | 19,248 | 1,318 | 6.8 | ||||||||||||||||
122,218 | 107,424 | 14,794 | 13.8 | 134,315 | 139,607 | (5,292 | ) | (3.8 | ) | |||||||||||||||
Allocated to management | (274 | ) | (199 | ) | 75 | NM | (225 | ) | (293 | ) | (68 | ) | NM | |||||||||||
121,944 | 107,225 | 14,719 | 13.7 | % | 134,090 | 139,314 | (5,224 | ) | (3.7 | )% |
Three Months Ended September 30, | Increase (Decrease) | % Increase (Decrease) | |||||||||||||
(Dollars in millions) | 2019 | 2018 | |||||||||||||
Revenue: | |||||||||||||||
New vehicle | $ | 613.0 | $ | 600.1 | $ | 12.9 | 2.1 | % | |||||||
Used vehicle retail | 328.1 | 288.2 | 39.9 | 13.8 | |||||||||||
Used vehicle wholesale | 30.3 | 37.0 | (6.7 | ) | (18.1 | ) | |||||||||
Finance and insurance | 48.1 | 42.5 | 5.6 | 13.2 | |||||||||||
Service, body and parts | 122.8 | 114.7 | 8.1 | 7.1 | |||||||||||
Fleet and other | 15.5 | 15.3 | 0.2 | NM | |||||||||||
$ | 1,157.8 | $ | 1,097.8 | $ | 60.0 | 5.5 | |||||||||
Segment income | $ | 37.9 | $ | 25.3 | $ | 12.6 | 49.8 | ||||||||
Retail new vehicle unit sales | 14,284 | 14,695 | (411 | ) | (2.8 | ) |
Three Months Ended September 30, | Increase (Decrease) | % Increase (Decrease) | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | |||||||||||||
Revenue | $ | 1,008,310 | $ | 893,156 | $ | 115,154 | 12.9 | % | |||||||
Segment income | $ | 31,141 | $ | 32,292 | $ | (1,151 | ) | (3.6 | ) | ||||||
Retail new vehicle unit sales | 13,911 | 12,735 | 1,176 | 9.2 |
Nine Months Ended September 30, | Increase | % Increase | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | |||||||||||||
Revenue | $ | 2,863,018 | $ | 2,495,468 | $ | 367,550 | 14.7 | % | |||||||
Segment income | $ | 84,440 | $ | 84,420 | $ | 20 | — | ||||||||
Retail new vehicle unit sales | 39,407 | 35,176 | 4,231 | 12.0 |
Nine Months Ended September 30, | Increase (Decrease) | % Increase (Decrease) | |||||||||||||
(Dollars in millions) | 2019 | 2018 | |||||||||||||
Revenue: | |||||||||||||||
New vehicle | $ | 1,682.7 | $ | 1,711.2 | $ | (28.5 | ) | (1.7 | )% | ||||||
Used vehicle retail | 949.6 | 836.5 | 113.1 | 13.5 | |||||||||||
Used vehicle wholesale | 89.5 | 104.5 | (15.0 | ) | (14.4 | ) | |||||||||
Finance and insurance | 137.2 | 125.6 | 11.6 | 9.2 | |||||||||||
Service, body and parts | 359.2 | 335.4 | 23.8 | 7.1 | |||||||||||
Fleet and other | 47.6 | 50.4 | (2.8 | ) | NM | ||||||||||
$ | 3,265.8 | $ | 3,163.6 | $ | 102.2 | 3.2 | % | ||||||||
Segment income | $ | 94.1 | $ | 79.5 | $ | 14.6 | 18.4 | % | |||||||
Retail new vehicle unit sales | 39,569 | 42,048 | (2,479 | ) | (5.9 | )% |
Three Months Ended September 30, | Increase | % Increase | Three Months Ended September 30, | Increase (Decrease) | % Increase (Decrease) | |||||||||||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | ||||||||||||||||||||||||||||
Revenue | $ | 1,209,955 | $ | 983,947 | $ | 226,008 | 23.0 | % | ||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | Increase (Decrease) | % Increase (Decrease) | ||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||
New vehicle | $ | 824.8 | $ | 787.8 | $ | 37.0 | 4.7 | % | ||||||||||||||||||||||
Used vehicle retail | 380.9 | 334.6 | 46.3 | 13.8 | ||||||||||||||||||||||||||
Used vehicle wholesale | 28.4 | 35.2 | (6.8 | ) | (19.3 | ) | ||||||||||||||||||||||||
Finance and insurance | 65.2 | 60.5 | 4.7 | 7.8 | ||||||||||||||||||||||||||
Service, body and parts | 129.2 | 114.8 | 14.4 | 12.5 | ||||||||||||||||||||||||||
Fleet and other | 9.2 | 3.5 | 5.7 | NM | ||||||||||||||||||||||||||
$ | 1,437.7 | $ | 1,336.4 | $ | 101.3 | 7.6 | ||||||||||||||||||||||||
Segment income | $ | 36,954 | $ | 32,934 | $ | 4,020 | 12.2 | $ | 48.3 | $ | 37.4 | $ | 10.9 | 29.1 | ||||||||||||||||
Retail new vehicle unit sales | 26,621 | 21,467 | 5,154 | 24.0 | 26,994 | 27,295 | (301 | ) | (1.1 | ) |
Nine Months Ended September 30, | Increase | % Increase | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | |||||||||||||
Revenue | $ | 3,276,667 | $ | 2,777,007 | $ | 499,660 | 18.0 | % | |||||||
Segment income | $ | 91,365 | $ | 86,878 | $ | 4,487 | 5.2 | ||||||||
Retail new vehicle unit sales | 69,643 | 59,581 | 10,062 | 16.9 |
Nine Months Ended September 30, | Increase (Decrease) | % Increase (Decrease) | |||||||||||||
(Dollars in millions) | 2019 | 2018 | |||||||||||||
Revenue: | |||||||||||||||
New vehicle | $ | 2,198.1 | $ | 2,227.4 | $ | (29.3 | ) | (1.3 | )% | ||||||
Used vehicle retail | 1,085.7 | 977.9 | 107.8 | 11.0 | |||||||||||
Used vehicle wholesale | 85.3 | 94.3 | (9.0 | ) | (9.5 | ) | |||||||||
Finance and insurance | 180.9 | 167.1 | 13.8 | 8.3 | |||||||||||
Service, body and parts | 374.2 | 340.8 | 33.4 | 9.8 | |||||||||||
Fleet and other | 38.1 | 22.0 | 16.1 | NM | |||||||||||
$ | 3,962.3 | $ | 3,829.5 | $ | 132.8 | 3.5 | % | ||||||||
Segment income | $ | 117.8 | $ | 90.6 | $ | 27.2 | 30.0 | % | |||||||
Retail new vehicle unit sales | 74,180 | 78,311 | (4,131 | ) | (5.3 | )% |
Three Months Ended September 30, | Increase | % Increase | Three Months Ended September 30, | Increase | % Increase | |||||||||||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | ||||||||||||||||||||||||||||
Revenue | $ | 463,518 | $ | 392,537 | $ | 70,981 | 18.1 | % | ||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | Increase | % Increase | ||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||
New vehicle | $ | 387.0 | $ | 347.6 | $ | 39.4 | 11.3 | % | ||||||||||||||||||||||
Used vehicle retail | 206.7 | 182.5 | 24.2 | 13.3 | ||||||||||||||||||||||||||
Used vehicle wholesale | 16.4 | 19.9 | (3.5 | ) | (17.6 | ) | ||||||||||||||||||||||||
Finance and insurance | 19.2 | 16.4 | 2.8 | 17.1 | ||||||||||||||||||||||||||
Service, body and parts | 84.9 | 76.9 | 8.0 | 10.4 | ||||||||||||||||||||||||||
Fleet and other | 15.2 | 9.6 | 5.6 | NM | ||||||||||||||||||||||||||
$ | 729.4 | $ | 652.9 | $ | 76.5 | 11.7 | ||||||||||||||||||||||||
Segment income | $ | 7,515 | $ | 7,423 | $ | 92 | 1.2 | $ | 13.0 | $ | 11.7 | $ | 1.3 | 11.1 | ||||||||||||||||
Retail new vehicle unit sales | 5,029 | 4,287 | 742 | 17.3 | 7,342 | 6,860 | 482 | 7.0 |
Nine Months Ended September 30, | Increase | % Increase | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | |||||||||||||
Revenue | $ | 1,246,484 | $ | 1,111,215 | $ | 135,269 | 12.2 | % | |||||||
Segment income | $ | 22,542 | $ | 21,736 | $ | 806 | 3.7 | ||||||||
Retail new vehicle unit sales | 13,168 | 12,667 | 501 | 4.0 |
Nine Months Ended September 30, | Increase | % Increase | |||||||||||||
(Dollars in millions) | 2019 | 2018 | |||||||||||||
Revenue: | |||||||||||||||
New vehicle | $ | 1,110.2 | $ | 988.0 | $ | 122.2 | 12.4 | % | |||||||
Used vehicle retail | 596.0 | 510.3 | 85.7 | 16.8 | |||||||||||
Used vehicle wholesale | 59.0 | 54.4 | 4.6 | 8.5 | |||||||||||
Finance and insurance | 54.1 | 44.6 | 9.5 | 21.3 | |||||||||||
Service, body and parts | 248.0 | 218.6 | 29.4 | 13.4 | |||||||||||
Fleet and other | 81.7 | 31.0 | 50.7 | NM | |||||||||||
$ | 2,149.0 | $ | 1,846.9 | $ | 302.1 | 16.4 | % | ||||||||
Segment income | $ | 36.5 | $ | 30.5 | $ | 6.0 | 19.7 | % | |||||||
Retail new vehicle unit sales | 20,566 | 19,248 | 1,318 | 6.8 | % |
Three Months Ended September 30, | Increase (Decrease) | % Increase (Decrease) | Three Months Ended September 30, | Increase (Decrease) | % Decrease | |||||||||||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | ||||||||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | Increase (Decrease) | % Decrease | ||||||||||||||||||||||||||
Revenue, net | $ | (1,441 | ) | $ | 327 | $ | (1,768 | ) | (540.7 | )% | $ | 7.5 | $ | 4.9 | ||||||||||||||||
Segment income | $ | 34,541 | $ | 26,794 | $ | 7,747 | 28.9 | $ | 50.6 | $ | 66.8 | $ | (16.2 | ) | (24.3 | )% |
Nine Months Ended September 30, | Increase (Decrease) | % Increase (Decrease) | Nine Months Ended September 30, | Increase (Decrease) | % Decrease | |||||||||||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | ||||||||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | Increase (Decrease) | % Decrease | ||||||||||||||||||||||||||
Revenue, net | $ | (2,690 | ) | $ | 2,477 | $ | (5,167 | ) | (208.6 | )% | $ | 26.7 | $ | 8.2 | ||||||||||||||||
Segment income | $ | 111,281 | $ | 81,881 | $ | 29,400 | 35.9 | $ | 129.3 | $ | 149.5 | $ | (20.2 | ) | (13.5 | )% |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(Dollars in thousands) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Equity-method investment | $ | — | $ | 3,498 | $ | — | $ | 10,494 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Long-lived assets | $ | — | $ | — | $ | 0.5 | $ | — |
Three Months Ended September 30, | Increase | % Increase | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | |||||||||||||
Personnel | $ | 182,443 | $ | 151,801 | $ | 30,642 | 20.2 | % | |||||||
Advertising | 24,572 | 20,110 | 4,462 | 22.2 | |||||||||||
Rent | 8,768 | 6,694 | 2,074 | 31.0 | |||||||||||
Facility costs | 14,992 | 12,488 | 2,504 | 20.1 | |||||||||||
Other | 51,466 | 37,041 | 14,425 | 38.9 | |||||||||||
Total SG&A | $ | 282,241 | $ | 228,134 | $ | 54,107 | 23.7 | % |
Three Months Ended September 30, | Increase | Three Months Ended September 30, | Increase (Decrease) | % Increase (Decrease) | ||||||||||||||||||||
As a % of gross profit | 2017 | 2016 | ||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | Increase (Decrease) | % Increase (Decrease) | ||||||||||||||||||||
Personnel | 45.3 | % | 45.0 | % | 30 | bp | $ | 236.2 | $ | 213.2 | ||||||||||||||
Advertising | 6.1 | 6.0 | 10 | 28.4 | 28.6 | (0.2 | ) | (0.7 | ) | |||||||||||||||
Rent | 2.2 | 2.0 | 20 | 10.4 | 10.5 | (0.1 | ) | (1.0 | ) | |||||||||||||||
Facility costs | 3.7 | 3.7 | — | |||||||||||||||||||||
Facility costs1 | 19.4 | 18.2 | 1.2 | 6.6 | ||||||||||||||||||||
Gain on sale of assets | (9.4 | ) | (15.8 | ) | 6.4 | NM | ||||||||||||||||||
Other | 12.7 | 10.9 | 180 | 58.2 | 54.3 | 3.9 | 7.2 | |||||||||||||||||
Total SG&A | 70.0 | % | 67.6 | % | 240 | bp | $ | 343.2 | $ | 309.0 | $ | 34.2 | 11.1 | % |
Three Months Ended September 30, | Increase (Decrease) | ||||||||
As a % of gross profit | 2019 | 2018 | |||||||
Personnel | 46.2 | % | 45.7 | % | 50 | bp | |||
Advertising | 5.5 | 6.1 | (60 | ) | |||||
Rent | 2.0 | 2.3 | (30 | ) | |||||
Facility costs | 3.8 | 3.9 | (10 | ) | |||||
Gain on sale of assets | (1.8 | ) | (3.4 | ) | 160 | ||||
Other | 11.5 | 11.7 | (20 | ) | |||||
Total SG&A | 67.2 | % | 66.3 | % | 90 | bp |
Nine Months Ended September 30, | Increase | % Increase | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | |||||||||||||
Personnel | $ | 513,439 | $ | 445,053 | $ | 68,386 | 15.4 | % | |||||||
Advertising | 67,516 | 59,229 | 8,287 | 14.0 | |||||||||||
Rent | 23,216 | 20,040 | 3,176 | 15.8 | |||||||||||
Facility costs | 44,371 | 30,920 | 13,451 | 43.5 | |||||||||||
Other | 133,761 | 107,524 | 26,237 | 24.4 | |||||||||||
Total SG&A | $ | 782,303 | $ | 662,766 | $ | 119,537 | 18.0 | % |
Nine Months Ended September 30, | Increase (Decrease) | ||||||||
As a % of gross profit | 2017 | 2016 | |||||||
Personnel | 45.8 | % | 46.0 | % | (20 | )bp | |||
Advertising | 6.0 | % | 6.1 | % | (10 | ) | |||
Rent | 2.1 | % | 2.1 | % | — | ||||
Facility costs | 4.0 | % | 3.2 | % | 80 | ||||
Other | 12.0 | % | 11.2 | % | 80 | ||||
Total SG&A | 69.9 | % | 68.6 | % | 130 | bp |
Nine Months Ended September 30, | Increase (Decrease) | % Increase (Decrease) | |||||||||||||
(Dollars in millions) | 2019 | 2018 | |||||||||||||
Personnel | $ | 678.2 | $ | 618.9 | $ | 59.3 | 9.6 | % | |||||||
Advertising | 82.9 | 81.7 | 1.2 | 1.5 | |||||||||||
Rent | 31.1 | 33.6 | (2.5 | ) | (7.4 | ) | |||||||||
Facility costs1 | 57.4 | 54.1 | 3.3 | 6.1 | |||||||||||
Gain on sale of assets | (9.1 | ) | (15.4 | ) | 6.3 | NM | |||||||||
Other | 181.0 | 167.0 | 14.0 | 8.4 | |||||||||||
Total SG&A | $ | 1,021.5 | $ | 939.9 | $ | 81.6 | 8.7 | % |
Nine Months Ended September 30, | Increase (Decrease) | ||||||||
As a % of gross profit | 2019 | 2018 | |||||||
Personnel | 46.6 | % | 46.4 | % | 20 | bp | |||
Advertising | 5.7 | 6.1 | (40 | ) | |||||
Rent | 2.1 | 2.5 | (40 | ) | |||||
Facility costs | 3.9 | 4.0 | (10 | ) | |||||
Gain on sale of assets | (0.6 | ) | (1.2 | ) | 60 | ||||
Other | 12.5 | 12.6 | (10 | ) | |||||
Total SG&A | 70.2 | % | 70.4 | % | (20 | )bp |
Three Months Ended September 30, | Increase | % Increase | Three Months Ended September 30, | Increase (Decrease) | % Increase (Decrease) | |||||||||||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | ||||||||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | Increase (Decrease) | % Increase (Decrease) | ||||||||||||||||||||||||||
Personnel | $ | 182,443 | $ | 151,803 | $ | 30,640 | 20.2 | % | $ | 236.2 | $ | 213.2 | ||||||||||||||||||
Advertising | 24,572 | 20,110 | 4,462 | 22.2 | 28.4 | 28.6 | (0.2 | ) | (0.7 | ) | ||||||||||||||||||||
Rent | 8,768 | 6,694 | 2,074 | 31.0 | 10.4 | 10.5 | (0.1 | ) | (1.0 | ) | ||||||||||||||||||||
Adjusted facility costs | 14,992 | 12,489 | 2,503 | 20.0 | ||||||||||||||||||||||||||
Facility costs1 | 19.4 | 18.2 | 1.2 | 6.6 | ||||||||||||||||||||||||||
Adjusted gain on sale of assets | — | (0.1 | ) | 0.1 | NM | |||||||||||||||||||||||||
Adjusted other | 46,246 | 37,038 | 9,208 | 24.9 | 56.9 | 54.3 | 2.6 | 4.8 | ||||||||||||||||||||||
Adjusted total SG&A | $ | 277,021 | $ | 228,134 | $ | 48,887 | 21.4 | % | $ | 351.3 | $ | 324.7 | $ | 26.6 | 8.2 | % |
Three Months Ended September 30, | Increase | Three Months Ended September 30, | Increase (Decrease) | |||||||||||||||
As a % of gross profit | 2017 | 2016 | 2019 | 2018 | ||||||||||||||
Personnel | 45.3 | % | 45.0 | % | 30 | bp | 46.2 | % | 45.7 | % | 50 | bp | ||||||
Advertising | 6.1 | % | 6.0 | % | 10 | 5.5 | 6.1 | (60 | ) | |||||||||
Rent | 2.2 | % | 2.0 | % | 20 | 2.0 | 2.3 | (30 | ) | |||||||||
Adjusted facility costs | 3.7 | % | 3.7 | % | — | |||||||||||||
Facility costs | 3.8 | 3.9 | (10 | ) | ||||||||||||||
Adjusted gain on sale of assets | — | — | — | |||||||||||||||
Adjusted other | 11.4 | % | 10.9 | % | 50 | 11.3 | 11.6 | (30 | ) | |||||||||
Adjusted total SG&A | 68.7 | % | 67.6 | % | 110 | bp | 68.8 | % | 69.6 | % | (80 | )bp |
Nine Months Ended September 30, | Increase | % Increase | Nine Months Ended September 30, | Increase (Decrease) | % Increase (Decrease) | |||||||||||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | ||||||||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | Increase (Decrease) | % Increase (Decrease) | ||||||||||||||||||||||||||
Personnel | $ | 513,439 | $ | 445,055 | $ | 68,384 | 15.4 | % | $ | 678.2 | $ | 618.9 | ||||||||||||||||||
Advertising | 67,516 | 59,229 | 8,287 | 14.0 | % | 82.9 | 81.7 | 1.2 | 1.5 | % | ||||||||||||||||||||
Rent | 23,216 | 20,040 | 3,176 | 15.8 | % | 31.1 | 33.6 | (2.5 | ) | (7.4 | )% | |||||||||||||||||||
Adjusted facility costs | 44,371 | 32,007 | 12,364 | 38.6 | % | |||||||||||||||||||||||||
Facility costs1 | 57.4 | 54.1 | 3.3 | 6.1 | % | |||||||||||||||||||||||||
Adjusted loss on sale of assets | — | 0.3 | (0.3 | ) | NM | |||||||||||||||||||||||||
Adjusted other | 122,526 | 105,616 | 16,910 | 16.0 | % | 169.6 | 162.2 | 7.4 | 4.6 | % | ||||||||||||||||||||
Adjusted total SG&A | $ | 771,068 | $ | 661,947 | $ | 109,121 | 16.5 | % | $ | 1,019.2 | $ | 950.8 | $ | 68.4 | 7.2 | % |
Nine Months Ended September 30, | Increase (Decrease) | Nine Months Ended September 30, | Increase (Decrease) | |||||||||||||||
As a % of gross profit | 2017 | 2016 | 2019 | 2018 | ||||||||||||||
Personnel | 45.8 | % | 46.0 | % | (20 | )bp | 46.6 | % | 46.4 | % | 20 | bp | ||||||
Advertising | 6.0 | % | 6.1 | % | (10 | ) | 5.7 | 6.1 | (40 | ) | ||||||||
Rent | 2.1 | % | 2.1 | % | — | 2.1 | 2.5 | (40 | ) | |||||||||
Adjusted facility costs | 4.0 | % | 3.3 | % | 70 | |||||||||||||
Facility costs | 3.9 | 4.0 | (10 | ) | ||||||||||||||
Adjusted loss on sale of assets | — | — | — | |||||||||||||||
Adjusted other | 10.9 | % | 11.0 | % | (10 | ) | 11.7 | 12.2 | (50 | ) | ||||||||
Adjusted total SG&A | 68.8 | % | 68.5 | % | 30 | bp | 70.0 | % | 71.2 | % | (120 | )bp |
Three Months Ended September 30, | Increase | % Increase | Three Months Ended September 30, | Increase | % Increase | |||||||||||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | ||||||||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | Increase | % Increase | ||||||||||||||||||||||||||
Depreciation and amortization | $ | 14,828 | $ | 12,206 | $ | 2,622 | 21.5 | % | $ | 20.9 | $ | 19.6 |
Nine Months Ended September 30, | Increase | % Increase | Nine Months Ended September 30, | Increase | % Increase | |||||||||||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | ||||||||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | Increase | % Increase | ||||||||||||||||||||||||||
Depreciation and amortization | $ | 41,598 | $ | 36,372 | $ | 5,226 | 14.4 | % | $ | 60.9 | $ | 55.3 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Operating margin | 4.0 | % | 4.1 | % | 4.0 | % | 4.0 | % | 4.4 | % | 4.4 | % | 4.0 | % | 3.8 | % | ||||||||
Operating margin adjusted for non-core charges 1 | 4.1 | % | 4.3 | % | 4.2 | % | 4.2 | % | 4.2 | % | 3.9 | % | 4.0 | % | 3.7 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | % Change | 2017 | 2016 | % Change | ||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | % Change | 2019 | 2018 | % Change | ||||||||||||||||||||||||||||||||||
Floor plan interest expense (new vehicles) | 10,629 | 6,186 | 71.8 | % | 28,013 | 18,304 | 53.0 | % | $ | 17.9 | $ | 16.0 | 11.9 | % | $ | 55.5 | $ | 45.1 | 23.1 | % |
Three Months Ended September 30, | % | Three Months Ended September 30, | % | |||||||||||||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | Change | Change | ||||||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | Change | Change | ||||||||||||||||||||||||||
Floor plan interest expense (new vehicles) | $ | 10,629 | $ | 6,186 | $ | 4,443 | 71.8 | % | $ | 17.9 | $ | 16.0 | $ | 1.9 | 11.9 | % | ||||||||||||||
Floor plan assistance (included as an offset to cost of sales) | (15,130 | ) | (12,044 | ) | (3,086 | ) | 25.6 | (18.3 | ) | (17.9 | ) | (0.4 | ) | 2.2 | ||||||||||||||||
Net new vehicle carrying costs | $ | (4,501 | ) | $ | (5,858 | ) | $ | 1,357 | (23.2 | )% | $ | (0.4 | ) | $ | (1.9 | ) | $ | 1.5 | NM |
Nine Months Ended September 30, | % | Nine Months Ended September 30, | % | |||||||||||||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | Change | Change | ||||||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | Change | Change | ||||||||||||||||||||||||||
Floor plan interest expense (new vehicles) | $ | 28,013 | $ | 18,304 | $ | 9,709 | 53.0 | % | $ | 55.5 | $ | 45.1 | $ | 10.4 | 23.1 | % | ||||||||||||||
Floor plan assistance (included as an offset to cost of sales) | (40,186 | ) | (33,614 | ) | (6,572 | ) | 19.6 | (50.7 | ) | (49.6 | ) | (1.1 | ) | 2.2 | ||||||||||||||||
Net new vehicle carrying costs | $ | (12,173 | ) | $ | (15,310 | ) | $ | 3,137 | (20.5 | )% | $ | 4.8 | $ | (4.5 | ) | $ | 9.3 | NM |
Three Months Ended September 30, | Increase | % Increase | Three Months Ended September 30, | Increase (Decrease) | % Increase (Decrease) | |||||||||||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | ||||||||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | Increase (Decrease) | % Increase (Decrease) | ||||||||||||||||||||||||||
Mortgage interest | $ | 4,964 | $ | 3,787 | $ | 1,177 | 31.1 | $ | 6.9 | $ | 7.3 | |||||||||||||||||||
Other interest | 5,092 | 1,939 | 3,153 | 162.6 | 8.5 | 8.1 | 0.4 | 4.9 | ||||||||||||||||||||||
Capitalized interest | (151 | ) | (79 | ) | 72 | 91.1 | (0.6 | ) | (0.4 | ) | 0.2 | NM | ||||||||||||||||||
Total other interest expense | $ | 9,905 | $ | 5,647 | 4,258 | 75.4 | % | $ | 14.8 | $ | 15.0 | $ | (0.2 | ) | (1.3 | )% |
Nine Months Ended September 30, | Increase | % Increase | Nine Months Ended September 30, | Increase | % Increase | |||||||||||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | ||||||||||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | Increase | % Increase | ||||||||||||||||||||||||||
Mortgage interest | $ | 14,049 | $ | 11,034 | $ | 3,015 | 27.3 | % | $ | 20.8 | $ | 17.9 | ||||||||||||||||||
Other interest | 10,040 | 5,889 | 4,151 | 70.5 | 26.1 | 23.6 | 2.5 | 10.6 | ||||||||||||||||||||||
Capitalized interest | (344 | ) | (315 | ) | 29 | 9.2 | (1.9 | ) | (0.8 | ) | 1.1 | NM | ||||||||||||||||||
Total other interest expense | $ | 23,745 | $ | 16,608 | 7,137 | 43.0 | % | $ | 45.0 | $ | 40.7 | $ | 4.3 | 10.6 | % |
Three Months Ended September 30, | Increase | % Increase | ||||||||||||
(Dollars in thousands) | 2017 | 2016 | ||||||||||||
Other Income (Expense), net | $ | 1,125 | $ | (1,513 | ) | $ | 2,638 | NM |
Nine Months Ended September 30, | Increase | % Increase | ||||||||||||
(Dollars in thousands) | 2017 | 2016 | ||||||||||||
Other Income (Expense), net | $ | 11,357 | $ | (4,534 | ) | $ | 15,891 | NM |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||
Effective income tax rate | 40.0 | % | 32.5 | % | 39.1 | % | 33.0 | % | ||||
Effective income tax rate excluding tax credits generated through our equity-method investment and other non-core items 1 | 40.3 | % | 39.3 | % | 39.1 | % | 39.3 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||
Effective income tax rate | 27.4 | % | 14.6 | % | 27.5 | % | 20.7 | % |
Three Months Ended September 30, 2017 | ||||||||||||||||
(Dollars in Thousands, Except per Share Amounts) | As reported | Insurance reserves | Acquisition expenses | Adjusted | ||||||||||||
Selling, general and administrative | $ | 282,241 | $ | (1,704 | ) | $ | (3,516 | ) | $ | 277,021 | ||||||
Operating income | 105,952 | 1,704 | 3,516 | 111,172 | ||||||||||||
Income before income taxes | $ | 86,543 | $ | 1,704 | $ | 3,516 | $ | 91,763 | ||||||||
Income tax provision | (34,657 | ) | (943 | ) | (1,380 | ) | (36,980 | ) | ||||||||
Net income | $ | 51,886 | $ | 761 | $ | 2,136 | $ | 54,783 | ||||||||
Diluted net income per share | $ | 2.07 | $ | 0.03 | $ | 0.08 | $ | 2.18 | ||||||||
Diluted share count | 25,076 |
Three Months Ended September 30, 2016 | ||||||||||||
(Dollars in thousands, except per share amounts) | As reported | Equity-method investment | Adjusted | |||||||||
Asset impairment | $ | 3,498 | $ | (3,498 | ) | $ | — | |||||
Operating income | 93,423 | 3,498 | 96,921 | |||||||||
Other income (expense) | (1,513 | ) | 2,066 | 553 | ||||||||
Income before income taxes | $ | 80,077 | $ | 5,564 | $ | 85,641 | ||||||
Income tax provision | (26,036 | ) | (7,592 | ) | (33,628 | ) | ||||||
Net income (loss) | $ | 54,041 | $ | (2,028 | ) | $ | 52,013 | |||||
Diluted net income (loss) per share | $ | 2.14 | $ | (0.08 | ) | $ | 2.06 | |||||
Diluted share count | 25,290 |
Nine Months Ended September 30, 2017 | Three Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | As reported | Insurance reserves | Acquisition expenses | OEM settlement | Adjusted | |||||||||||||||||||||||||||||||||||
(Dollars in millions, except per share amounts) | As reported | Acquisition expenses | Net disposal gain on sale of stores | Insurance reserves | Adjusted | |||||||||||||||||||||||||||||||||||
Selling, general and administrative | $ | 782,303 | $ | (5,582 | ) | $ | (5,653 | ) | $ | — | $ | 771,068 | $ | 343.2 | $ | (0.2 | ) | $ | 9.4 | $ | (1.1 | ) | $ | 351.3 | ||||||||||||||||
Operating income | 296,043 | 5,582 | 5,653 | — | 307,278 | |||||||||||||||||||||||||||||||||||
Other (expense) income, net | 11,357 | — | — | (9,111 | ) | 2,246 | ||||||||||||||||||||||||||||||||||
Operating income (loss) | 146.8 | 0.2 | (9.4 | ) | 1.1 | 138.7 | ||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 255,642 | $ | 5,582 | $ | 5,653 | $ | (9,111 | ) | $ | 257,766 | $ | 117.4 | $ | 0.2 | $ | (9.4 | ) | $ | 1.1 | $ | 109.3 | ||||||||||||||||||
Income tax (provision) benefit | (99,829 | ) | (2,174 | ) | (2,201 | ) | 3,423 | (100,781 | ) | (32.2 | ) | (0.1 | ) | 2.7 | (0.3 | ) | (29.9 | ) | ||||||||||||||||||||||
Net income (loss) | $ | 155,813 | $ | 3,408 | $ | 3,452 | $ | (5,688 | ) | $ | 156,985 | $ | 85.2 | $ | 0.1 | $ | (6.7 | ) | $ | 0.8 | $ | 79.4 | ||||||||||||||||||
Diluted net income (loss) per share | $ | 6.19 | $ | 0.14 | $ | 0.14 | $ | (0.23 | ) | $ | 6.24 | $ | 3.64 | $ | — | $ | (0.28 | ) | $ | 0.03 | $ | 3.39 | ||||||||||||||||||
Diluted share count | 25,158 | 23.4 |
Nine Months Ended September 30, 2016 | Three Months Ended September 30, 2018 | |||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | As reported | Disposal gain on sale of stores | Equity-method investment | Legal reserve adjustment | Adjusted | |||||||||||||||||||||||||||||||
Asset impairment | $ | 10,494 | $ | — | $ | (10,494 | ) | $ | — | $ | — | |||||||||||||||||||||||||
(Dollars in millions, except per share amounts) | As reported | Net disposal gain on sale of stores | Tax attributes | Adjusted | ||||||||||||||||||||||||||||||||
Selling, general and administrative | 662,766 | 1,087 | — | (1,906 | ) | 661,947 | $ | 309.0 | $ | 15.7 | $ | — | $ | 324.7 | ||||||||||||||||||||||
Operating Income (expense) | 256,847 | (1,087 | ) | 10,494 | 1,906 | 268,160 | ||||||||||||||||||||||||||||||
Other (expense) income, net | (4,534 | ) | — | 6,197 | — | 1,663 | ||||||||||||||||||||||||||||||
Operating income (loss) | 137.6 | (15.7 | ) | — | 121.9 | |||||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 217,401 | $ | (1,087 | ) | $ | 16,691 | $ | 1,906 | $ | 234,911 | $ | 109.0 | $ | (15.7 | ) | $ | — | $ | 93.3 | ||||||||||||||||
Income tax (provision) benefit | (71,662 | ) | 426 | (20,374 | ) | (747 | ) | (92,357 | ) | (15.9 | ) | 4.1 | (12.8 | ) | (24.6 | ) | ||||||||||||||||||||
Net income (loss) | $ | 145,739 | $ | (661 | ) | $ | (3,683 | ) | $ | 1,159 | $ | 142,554 | $ | 93.1 | $ | (11.6 | ) | $ | (12.8 | ) | $ | 68.7 | ||||||||||||||
Diluted net income (loss) per share | $ | 5.69 | $ | (0.03 | ) | $ | (0.14 | ) | $ | 0.05 | $ | 5.57 | $ | 3.84 | $ | (0.48 | ) | $ | (0.53 | ) | $ | 2.83 | ||||||||||||||
Diluted share count | 25,598 | 24.3 |
Nine Months Ended September 30, 2019 | ||||||||||||||||||||||||
(Dollars in millions, except per share amounts) | As reported | Acquisition expenses | Net disposal gain on sale of stores | Insurance reserves | Asset impairments | Adjusted | ||||||||||||||||||
Asset impairment | $ | 0.5 | $ | — | $ | — | $ | — | $ | (0.5 | ) | $ | — | |||||||||||
Selling, general and administrative | 1,021.5 | (1.9 | ) | 9.1 | (9.5 | ) | — | 1,019.2 | ||||||||||||||||
Operating income (loss) | 372.3 | 1.9 | (9.1 | ) | 9.5 | 0.5 | 375.1 | |||||||||||||||||
Income (loss) before income taxes | $ | 280.7 | $ | 1.9 | $ | (9.1 | ) | $ | 9.5 | $ | 0.5 | $ | 283.5 | |||||||||||
Income tax (provision) benefit | (77.2 | ) | (0.5 | ) | 2.6 | (2.6 | ) | (0.1 | ) | (77.8 | ) | |||||||||||||
Net income (loss) | $ | 203.5 | $ | 1.4 | $ | (6.5 | ) | $ | 6.9 | $ | 0.4 | $ | 205.7 | |||||||||||
Diluted net income (loss) per share | $ | 8.72 | $ | 0.06 | $ | (0.28 | ) | $ | 0.29 | $ | 0.02 | $ | 8.81 | |||||||||||
Diluted share count | 23.3 |
Nine Months Ended September 30, 2018 | ||||||||||||||||||||||||
(Dollars in millions, except per share amounts) | As reported | Net disposal gain on sale of stores | Acquisition expenses | Insurance reserves | Tax attributes | Adjusted | ||||||||||||||||||
Selling, general and administrative | $ | 939.9 | $ | 15.7 | $ | (3.3 | ) | $ | (1.5 | ) | $ | — | $ | 950.8 | ||||||||||
Operating income (loss) | 339.9 | (15.7 | ) | 3.3 | 1.5 | — | 329.0 | |||||||||||||||||
Income (loss) before income taxes | $ | 259.5 | $ | (15.7 | ) | $ | 3.3 | $ | 1.5 | $ | — | $ | 248.6 | |||||||||||
Income tax (provision) benefit | (53.7 | ) | 4.1 | (0.9 | ) | (0.4 | ) | (14.2 | ) | (65.1 | ) | |||||||||||||
Net income (loss) | $ | 205.8 | $ | (11.6 | ) | $ | 2.4 | $ | 1.1 | $ | (14.2 | ) | $ | 183.5 | ||||||||||
Diluted net income (loss) per share | $ | 8.31 | $ | (0.47 | ) | $ | 0.10 | $ | 0.04 | $ | (0.57 | ) | $ | 7.41 | ||||||||||
Diluted share count | 24.8 |
As of September 30, | Increase | % Increase | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | |||||||||||||
Cash and cash equivalents | $ | 38,577 | $ | 24,116 | $ | 14,461 | 60.0 | % | |||||||
Available credit on the credit facilities | 268,831 | 122,138 | 146,693 | 120.1 | |||||||||||
Total current available funds | 307,408 | 146,254 | 161,154 | 110.2 | |||||||||||
Estimated funds from unfinanced real estate | 211,379 | 193,247 | 18,132 | 9.4 | |||||||||||
Total estimated available funds | $ | 518,787 | $ | 339,501 | $ | 179,286 | 52.8 | % |
Nine Months Ended September 30, | Increase (Decrease) | Nine Months Ended September 30, | Increase (Decrease) | |||||||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | in Cash Flow | |||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | in Cash Flow | |||||||||||||||||||||
Net cash provided by operating activities | $ | 260,536 | $ | 194,240 | $ | 66,296 | $ | 453.5 | $ | 379.2 | $ | 74.3 | ||||||||||||
Net cash used in investing activities | (464,917 | ) | (289,484 | ) | (175,433 | ) | (199.7 | ) | (514.6 | ) | 314.9 | |||||||||||||
Net cash provided by financing activities | 192,676 | 74,352 | 118,324 | |||||||||||||||||||||
Net cash (used in) provided by financing activities | (258.3 | ) | 109.5 | (367.8 | ) |
Nine Months Ended September 30, | Increase (Decrease) | Nine Months Ended September 30, | Increase (Decrease) | |||||||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | in Cash Flow | |||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | in Cash Flow | |||||||||||||||||||||
Net cash provided by operating activities – as reported | $ | 260,536 | $ | 194,240 | $ | 66,296 | $ | 453.5 | $ | 379.2 | $ | 74.3 | ||||||||||||
Add: Net borrowings on floor plan notes payable, non-trade | 34,056 | 93,817 | (59,761 | ) | ||||||||||||||||||||
Add: Net (repayments) borrowings on floor plan notes payable, non-trade | (114.0 | ) | 61.7 | (175.7 | ) | |||||||||||||||||||
Less: Borrowings on floor plan notes payable, non-trade associated with acquired new vehicle inventory | (85,527 | ) | (88,147 | ) | 2,620 | (46.0 | ) | (120.9 | ) | 74.9 | ||||||||||||||
Net cash provided by operating activities – adjusted | $ | 209,065 | $ | 199,910 | $ | 9,155 | $ | 293.5 | $ | 320.0 | $ | (26.5 | ) |
Nine Months Ended September 30, | Increase (Decrease) | Nine Months Ended September 30, | Increase | |||||||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | in Cash Flow | |||||||||||||||||||||
(Dollars in millions) | 2019 | 2018 | in Cash Flow | |||||||||||||||||||||
Capital expenditures | $ | (72,174 | ) | $ | (81,363 | ) | $ | 9,189 | $ | (91.9 | ) | $ | (113.4 | ) | $ | 21.5 | ||||||||
Cash paid for acquisitions, net of cash acquired | (400,558 | ) | (199,435 | ) | (201,123 | ) | (142.8 | ) | (374.0 | ) | 231.2 | |||||||||||||
Cash paid for other investments | (7,929 | ) | (22,279 | ) | 14,350 | (6.7 | ) | (62.1 | ) | 55.4 | ||||||||||||||
Proceeds from sales of stores | 3,417 | 11,837 | (8,420 | ) | 40.9 | 32.9 | 8.0 |
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(Dollars in thousands) | 2017 | 2016 | ||||||||||||||
(Dollars in millions) | 2019 | 2018 | ||||||||||||||
Post-acquisition capital improvements | $ | 19,893 | $ | 37,714 | $ | 27.6 | $ | 43.1 | ||||||||
Facilities for open points | 714 | 32 | — | 8.5 | ||||||||||||
Purchases of previously leased facilities | — | 27,381 | ||||||||||||||
Purchase of facilities for existing operations | 2.5 | 18.3 | ||||||||||||||
Existing facility improvements | 26,400 | 11,810 | 39.4 | 16.9 | ||||||||||||
Maintenance | 25,167 | 4,426 | 22.4 | 26.6 | ||||||||||||
Total capital expenditures | $ | 72,174 | $ | 81,363 | $ | 91.9 | $ | 113.4 |
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2019 | 2018 | |||||||||||||
Number of stores acquired | 15 | 13 | 4 | 17 | ||||||||||||
Number of stores opened | 1 | 1 | — | 1 | ||||||||||||
Number of franchises added | — | 1 | 2 | — | ||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||
Cash paid for acquisitions, net of cash acquired | $ | 400,558 | $ | 199,435 | $ | 142.8 | $ | 374.0 | ||||||||
Less: Borrowings on floor plan notes payable: non-trade associated with acquired new vehicle inventory | (85,527 | ) | (88,147 | ) | (46.0 | ) | (120.9 | ) | ||||||||
Cash paid for acquisitions, net of cash acquired – adjusted | $ | 315,031 | $ | 111,288 | $ | 96.8 | $ | 253.1 |
Nine Months Ended September 30, | Increase | |||||||||||
(Dollars in thousands) | 2017 | 2016 | in Cash Flow | |||||||||
Cash provided in financing activities, as reported | $ | 192,676 | $ | 74,352 | $ | 118,324 | ||||||
Adjust: Repayments (borrowings) on floor plan notes payable: non-trade | (34,056 | ) | (93,817 | ) | 59,761 | |||||||
Cash provided (used) in financing activities – adjusted | $ | 158,620 | $ | (19,465 | ) | $ | 178,085 |
Nine Months Ended September 30, | Increase (Decrease) | |||||||||||
(Dollars in millions) | 2019 | 2018 | in Cash Flow | |||||||||
Cash (used in) provided by financing activities, as reported | $ | (258.3 | ) | $ | 109.5 | $ | (367.8 | ) | ||||
Adjust: Borrowings (repayments) on floor plan notes payable: non-trade | 114.0 | (61.7 | ) | 175.7 | ||||||||
Cash (used in) provided by financing activities – adjusted | $ | (144.3 | ) | $ | 47.8 | $ | (192.1 | ) |
Nine Months Ended September 30, | Increase (Decrease) | |||||||||||
(Dollars in thousands) | 2017 | 2016 | in Cash Flow | |||||||||
Net (repayments) borrowings on lines of credit | $ | (126,853 | ) | $ | 97,129 | $ | (223,982 | ) | ||||
Principal payments on long-term debt and capital leases, unscheduled | (46,471 | ) | (5,903 | ) | (40,568 | ) | ||||||
Proceeds from issuance of long-term debt | 395,905 | 22,816 | 373,089 | |||||||||
Repurchases of common stock | (31,521 | ) | (108,597 | ) | 77,076 | |||||||
Dividends paid | (19,803 | ) | (17,823 | ) | (1,980 | ) |
Nine Months Ended September 30, | Increase (Decrease) | |||||||||||
(Dollars in millions) | 2019 | 2018 | in Cash Flow | |||||||||
Net (repayments) borrowings on lines of credit | $ | (62.6 | ) | $ | 104.3 | $ | (166.9 | ) | ||||
Principal payments on long-term debt and capital leases, unscheduled | (11.0 | ) | (5.3 | ) | (5.7 | ) | ||||||
Proceeds from issuance of long-term debt | — | 62.1 | (62.1 | ) | ||||||||
Repurchases of common stock | (3.1 | ) | (81.6 | ) | 78.5 | |||||||
Dividends paid | (20.7 | ) | (21.0 | ) | 0.3 | |||||||
Other financing activity | (36.5 | ) | — | (36.5 | ) |
Dividend paid: | Dividend amount per share | Total amount of dividend (in thousands) | ||||||
March 2017 | $ | 0.25 | $ | 6,292 | ||||
May 2017 | $ | 0.27 | $ | 6,760 | ||||
August 2017 | $ | 0.27 | $ | 6,751 |
Dividend paid: | Dividend amount per share | Total amount of dividend (in millions) | ||||||
March 2019 | $ | 0.29 | $ | 6.7 | ||||
May 2019 | $ | 0.30 | $ | 7.0 | ||||
August 2019 | $ | 0.30 | $ | 7.0 |
As of September 30, 2017 | As of September 30, 2019 | |||||||||||||||||||
(Dollars in thousands) | Outstanding | Remaining Available | ||||||||||||||||||
(Dollars in millions) | Outstanding | Remaining Available | ||||||||||||||||||
Floor plan note payable: non-trade | $ | 1,598,111 | $ | — | 1 | $ | 1,594.5 | $ | — | 1 | ||||||||||
Floor plan notes payable | 114,833 | — | 407.5 | — | ||||||||||||||||
Used vehicle inventory financing facility | 5,000 | 45,000 | 2 | 332.0 | — | 2 | ||||||||||||||
Revolving lines of credit | 221,654 | 223,831 | 2, 3 | 69.0 | 249.5 | 2, 3 | ||||||||||||||
Real estate mortgages | 476,559 | — | 585.1 | — | ||||||||||||||||
5.25% Senior Subordinated Notes due 2025 | 300,000 | — | 300.0 | — | ||||||||||||||||
Other debt | 12,699 | — | 33.5 | — | ||||||||||||||||
Total debt outstanding | 2,728,856 | 268,831 | 3,321.6 | 249.5 | ||||||||||||||||
Less: unamortized debt issuance costs | (6,960 | ) | — | (5.5 | ) | — | ||||||||||||||
Total debt | $ | 2,721,896 | $ | 268,831 | $ | 3,316.1 | $ | 249.5 |
Debt Covenant Ratio | Requirement | As of September 30, | |||
Current ratio | Not less than 1.10 to 1 | 1.28 to 1 | |||
Fixed charge coverage ratio | Not less than 1.20 to 1 | 2.36 to 1 | |||
Leverage ratio | Not more than 5.00 to 1 | 2.51 to 1 |
Total number of shares purchased 2 | Average price paid per share | Total number of shares purchased as part of publicly announced plans 1 | Maximum dollar value of shares that may yet be purchased under publicly announced plan (in thousands) 1 | Total number of shares purchased 2 | Average price paid per share | Total number of shares purchased as part of publicly announced plans 1 | Maximum dollar value of shares that may yet be purchased under publicly announced plan (in thousands) 1 | |||||||||||||||||||||
July | 20,000 | $ | 97.69 | 20,000 | $ | 169,411 | — | $ | — | — | $ | 233,603 | ||||||||||||||||
August | 23,157 | 103.23 | 23,000 | 167,037 | 127 | 131.88 | — | 233,603 | ||||||||||||||||||||
September | 20,000 | 113.16 | 20,000 | 164,774 | — | — | — | 233,603 | ||||||||||||||||||||
63,157 | $ | 104.62 | 63,000 | $ | 164,774 | 127 | $ | 131.88 | — | $ | 233,603 |
Restated Articles of Incorporation of Lithia Motors, Inc. | |
Indenture, dated as of July 24, 2017, among Lithia Motors, Inc., the Guarantors and the Trustee (incorporated by reference to exhibit 4.1 to Form 8-K dated July 24, 2017 and filed with the Securities and Exchange Commission on July 24, 2017). | |
Form of 5.250% Senior Notes due 2025 (included as part of Exhibit 4.1)(incorporated by reference to exhibit 4.1 to Form 8-K dated July 24, 2017 and filed with the Securities and Exchange Commission on July 24, 2017). | |
Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934. | |
Certification of | |
Certification of Chief Executive Officer pursuant to Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350. | |
Certification of | |
101.INS | XBRL Instance Document. |
101.SCH | XBRL Taxonomy Extension Schema Document. |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. |
Date: | LITHIA MOTORS, INC. |
By: /s/ Tina Miller | |
Senior Vice President and Chief Financial Officer | |
(Duly Authorized Officer and Principal Financial and | |
Accounting Officer) |