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) | |||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Class A common stock without par value | LAD | The New York Stock Exchange |
Large Accelerated Filer | ☒ | Accelerated Filer | ☐ | |
Non-Accelerated Filer | ☐ | Smaller Reporting Company | ☐ | |
Emerging Growth Company | ☐ |
PART I - FINANCIAL INFORMATION | Page | |
Item 1. | ||
Consolidated Balance Sheets (Unaudited) - | ||
Consolidated Statements of Operations (Unaudited) | ||
Consolidated Statements of Comprehensive Income (Unaudited) – Three | ||
Consolidated Statements of | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II - OTHER INFORMATION | ||
Item 1. | Legal Proceedings | |
Item 1A. | ||
Item 2. | ||
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) | ||||||||
March 31, 2020 | December 31, 2019 | |||||||
Assets | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 56.6 | $ | 84.0 | ||||
Accounts receivable, net of allowance for doubtful accounts of $6.8 and $7.3 | 298.2 | 505.0 | ||||||
Inventories, net | 2,512.8 | 2,433.7 | ||||||
Other current assets | 58.2 | 47.8 | ||||||
Total Current Assets | 2,925.8 | 3,070.5 | ||||||
Property and equipment, net of accumulated depreciation of $298.6 and $284.3 | 1,631.5 | 1,611.7 | ||||||
Operating lease right-of-use assets | 244.6 | 251.9 | ||||||
Goodwill | 457.7 | 454.6 | ||||||
Franchise value | 306.0 | 306.7 | ||||||
Other non-current assets | 448.5 | 388.5 | ||||||
Total Assets | $ | 6,014.1 | $ | 6,083.9 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current Liabilities: | ||||||||
Floor plan notes payable | $ | 389.9 | $ | 425.2 | ||||
Floor plan notes payable: non-trade | 1,595.9 | 1,642.4 | ||||||
Current maturities of long-term debt | 45.8 | 39.3 | ||||||
Trade payables | 108.9 | 125.3 | ||||||
Accrued liabilities | 291.0 | 336.9 | ||||||
Total Current Liabilities | 2,431.5 | 2,569.1 | ||||||
Long-term debt, less current maturities | 1,489.8 | 1,430.6 | ||||||
Deferred revenue | 140.6 | 137.9 | ||||||
Deferred income taxes | 137.5 | 131.1 | ||||||
Non-current operating lease liabilities | 231.3 | 238.5 | ||||||
Other long-term liabilities | 126.9 | 109.0 | ||||||
Total Liabilities | 4,557.6 | 4,616.2 | ||||||
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 22.2 and 22.6 | — | 20.5 | ||||||
Class B common stock - no par value; authorized 25.0 shares; issued and outstanding 0.6 and 0.6 | 0.1 | 0.1 | ||||||
Additional paid-in capital | 26.0 | 46.0 | ||||||
Accumulated other comprehensive loss | (5.8 | ) | (0.7 | ) | ||||
Retained earnings | 1,436.2 | 1,401.8 | ||||||
Total Stockholders’ Equity | 1,456.5 | 1,467.7 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 6,014.1 | $ | 6,083.9 |
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 March 31, | ||||||||
2020 | 2019 | |||||||
Revenues: | ||||||||
New vehicle retail | $ | 1,373.5 | $ | 1,461.1 | ||||
Used vehicle retail | 874.4 | 827.9 | ||||||
Used vehicle wholesale | 66.7 | 77.4 | ||||||
Finance and insurance | 121.9 | 117.5 | ||||||
Service, body and parts | 329.9 | 317.4 | ||||||
Fleet and other | 37.4 | 48.4 | ||||||
Total revenues | 2,803.8 | 2,849.7 | ||||||
Cost of sales: | ||||||||
New vehicle retail | 1,295.3 | 1,375.2 | ||||||
Used vehicle retail | 784.4 | 743.3 | ||||||
Used vehicle wholesale | 66.1 | 76.5 | ||||||
Service, body and parts | 161.8 | 157.9 | ||||||
Fleet and other | 35.3 | 46.1 | ||||||
Total cost of sales | 2,342.9 | 2,399.0 | ||||||
Gross profit | 460.9 | 450.7 | ||||||
Asset impairments | — | 0.5 | ||||||
Selling, general and administrative | 346.0 | 321.8 | ||||||
Depreciation and amortization | 22.0 | 19.8 | ||||||
Operating income | 92.9 | 108.6 | ||||||
Floor plan interest expense | (14.0 | ) | (18.1 | ) | ||||
Other interest expense, net | (17.0 | ) | (15.3 | ) | ||||
Other income, net | 2.3 | 2.6 | ||||||
Income before income taxes | 64.2 | 77.8 | ||||||
Income tax provision | (18.0 | ) | (21.4 | ) | ||||
Net income | $ | 46.2 | $ | 56.4 | ||||
Basic net income per share | $ | 1.99 | $ | 2.43 | ||||
Shares used in basic per share calculations | 23.3 | 23.2 | ||||||
Diluted net income per share | $ | 1.97 | $ | 2.42 | ||||
Shares used in diluted per share calculations | 23.5 | 23.2 | ||||||
Cash dividends paid per Class A and Class B share | $ | 0.30 | $ | 0.29 |
LITHIA MOTORS, INC. AND SUBSIDIARIES Consolidated Statements of Comprehensive Income (In millions) (Unaudited) | ||||||||
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
Net income | $ | 46.2 | $ | 56.4 | ||||
Other comprehensive loss, net of tax: | ||||||||
Loss on cash flow hedges, net of tax benefit of $1.8 and $0.0, respectively | (5.1 | ) | — | |||||
Comprehensive income | $ | 41.1 | $ | 56.4 |
LITHIA MOTORS, INC. AND SUBSIDIARIES Consolidated Statements of Changes in Stockholders’ Equity (In millions) (Unaudited) | |||||||||||||||||||||||||||||
Three Months Ended March 31, 2020 | |||||||||||||||||||||||||||||
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, 2019 | 22.6 | $ | 20.5 | 0.6 | $ | 0.1 | $ | 46.0 | $ | (0.7 | ) | $ | 1,401.8 | $ | 1,467.7 | ||||||||||||||
Net income | — | — | — | — | — | — | 46.2 | 46.2 | |||||||||||||||||||||
Loss on cash flow hedges, net of tax benefit of $1.8 | — | — | — | — | — | (5.1 | ) | — | (5.1 | ) | |||||||||||||||||||
Issuance of stock in connection with employee stock plans | — | 2.6 | — | — | — | — | — | 2.6 | |||||||||||||||||||||
Issuance of restricted stock to employees | 0.1 | — | — | — | — | — | — | — | |||||||||||||||||||||
Repurchase of Class A common stock | (0.5 | ) | (32.0 | ) | — | — | (16.2 | ) | — | — | (48.2 | ) | |||||||||||||||||
Compensation for stock and stock option issuances and excess tax benefits from option exercises | — | 8.9 | — | — | (3.8 | ) | — | — | 5.1 | ||||||||||||||||||||
Dividends paid | — | — | — | — | — | — | (7.0 | ) | (7.0 | ) | |||||||||||||||||||
Adjustment to adopt ASC 326 | — | — | — | — | — | — | (4.8 | ) | (4.8 | ) | |||||||||||||||||||
Balance at March 31, 2020 | 22.2 | $ | — | 0.6 | $ | 0.1 | $ | 26.0 | $ | (5.8 | ) | $ | 1,436.2 | $ | 1,456.5 |
LITHIA MOTORS, INC. AND SUBSIDIARIES Consolidated Statements of Changes in Stockholders’ Equity (In millions) (Unaudited) | |||||||||||||||||||||||||||||
Three Months Ended March 31, 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 | ) | |||||||||||||||||||
Adjustment to adopt 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 |
LITHIA MOTORS, INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (In millions) (Unaudited) | ||||||||
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 46.2 | $ | 56.4 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Asset impairments | — | 0.5 | ||||||
Depreciation and amortization | 22.0 | 19.8 | ||||||
Stock-based compensation | 5.1 | 3.5 | ||||||
Loss on disposal of other assets | 0.1 | — | ||||||
(Gain) loss on disposal of franchise | (0.1 | ) | 0.1 | |||||
Deferred income taxes | 8.2 | 5.2 | ||||||
(Increase) decrease (net of acquisitions and dispositions): | ||||||||
Accounts receivable, net | 202.1 | 49.9 | ||||||
Inventories | (69.8 | ) | (81.4 | ) | ||||
Other assets | (6.8 | ) | 9.0 | |||||
Increase (decrease) (net of acquisitions and dispositions): | ||||||||
Floor plan notes payable | (32.7 | ) | 34.6 | |||||
Trade payables | (14.6 | ) | (6.4 | ) | ||||
Accrued liabilities | (49.4 | ) | (14.5 | ) | ||||
Other long-term liabilities and deferred revenue | 11.4 | 0.5 | ||||||
Net cash provided by operating activities | 121.7 | 77.2 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (41.6 | ) | (29.1 | ) | ||||
Proceeds from sales of assets | 0.2 | 0.4 | ||||||
Cash paid for other investments | (9.3 | ) | (6.6 | ) | ||||
Cash paid for acquisitions, net of cash acquired | (72.3 | ) | — | |||||
Proceeds from sales of stores | 4.7 | — | ||||||
Net cash used in investing activities | (118.3 | ) | (35.3 | ) | ||||
Cash flows from financing activities: | ||||||||
(Repayments) borrowings on floor plan notes payable, net: non-trade | (43.5 | ) | 43.5 | |||||
Borrowings on lines of credit | 430.0 | 570.0 | ||||||
Repayments on lines of credit | (375.0 | ) | (625.0 | ) | ||||
Principal payments on long-term debt and capital leases, scheduled | (6.5 | ) | (6.2 | ) | ||||
Principal payments on long-term debt and capital leases, other | — | (3.3 | ) | |||||
Proceeds from issuance of long-term debt | 17.2 | — | ||||||
Payments of debt issuance costs | (0.4 | ) | — | |||||
Proceeds from issuance of common stock | 2.6 | 2.3 | ||||||
Repurchase of common stock | (48.2 | ) | (3.1 | ) | ||||
Dividends paid | (7.0 | ) | (6.7 | ) | ||||
Net cash used in financing activities | (30.8 | ) | (28.5 | ) | ||||
(Decrease) increase in cash and cash equivalents | (27.4 | ) | 13.4 | |||||
Cash and cash equivalents at beginning of period | 84.0 | 31.6 | ||||||
Cash and cash equivalents at end of period | $ | 56.6 | $ | 45.0 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid during the period for interest | $ | 31.5 | $ | 37.9 | ||||
Cash paid during the period for income taxes, net | 1.3 | 0.2 | ||||||
Floor plan debt paid in connection with store disposals | — | 4.8 | ||||||
Supplemental schedule of non-cash activities: | ||||||||
ROU assets obtained in exchange for lease liabilities 1 | $ | 1.8 | $ | 257.0 |
Impact on Consolidated Balance Sheets | December 31, 2019 | Adjustments | January 1, 2020 | |||||||||
CECL Adoption: | ||||||||||||
Accounts receivable, net of allowance for doubtful accounts of $7.3 | $ | 505.0 | $ | (0.5 | ) | $ | 504.5 | |||||
Other non-current assets | 388.5 | (6.0 | ) | 382.5 | ||||||||
Total Assets | 6,083.9 | (6.5 | ) | 6,077.4 | ||||||||
Deferred income taxes | 131.1 | (1.7 | ) | 129.4 | ||||||||
Total Liabilities | 4,616.2 | (1.7 | ) | 4,614.5 | ||||||||
Retained earnings | 1,401.8 | (4.8 | ) | 1,397.0 | ||||||||
Total Liabilities and Stockholders’ Equity | 6,083.9 | (6.5 | ) | 6,077.4 |
March 31, 2020 | December 31, 2019 | |||||||
Contracts in transit | $ | 120.7 | $ | 269.7 | ||||
Trade receivables | 48.5 | 52.8 | ||||||
Vehicle receivables | 28.9 | 50.9 | ||||||
Manufacturer receivables | 77.4 | 112.4 | ||||||
Auto loan receivables | 56.8 | 62.2 | ||||||
Other receivables | 19.7 | 19.4 | ||||||
352.0 | 567.4 | |||||||
Less: Allowance for doubtful accounts | (6.8 | ) | (7.3 | ) | ||||
Less: Long-term portion of accounts receivable, net | (47.0 | ) | (55.1 | ) | ||||
Total accounts receivable, net | $ | 298.2 | $ | 505.0 |
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 |
March 31, 2020 | December 31, 2019 | |||||||
New vehicles | $ | 1,746.1 | $ | 1,704.1 | ||||
Used vehicles | 676.9 | 638.1 | ||||||
Parts and accessories | 89.8 | 91.5 | ||||||
Total inventories | $ | 2,512.8 | $ | 2,433.7 |
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, 2018 ¹ | $ | 164.5 | $ | 188.9 | $ | 81.5 | $ | 434.9 | ||||||||
Adjustments to purchase price allocations 2 | 1.6 | 1.6 | 1.9 | 5.1 | ||||||||||||
Additions through acquisitions 2 | 6.2 | 9.0 | 2.2 | 17.4 | ||||||||||||
Reductions from impairments | (0.3 | ) | (1.3 | ) | (0.1 | ) | (1.7 | ) | ||||||||
Reductions through divestitures | (0.2 | ) | (0.9 | ) | — | (1.1 | ) | |||||||||
Balance as of December 31, 2019 ¹ | 171.8 | 197.3 | 85.5 | 454.6 | ||||||||||||
Additions through acquisitions 3 | 0.4 | 2.4 | 0.4 | 3.2 | ||||||||||||
Reductions through divestitures | (0.1 | ) | — | — | (0.1 | ) | ||||||||||
Balance as of March 31, 2020 1 | $ | 172.1 | $ | 199.7 | $ | 85.9 | $ | 457.7 |
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, 2018 | $ | 288.7 | |
Adjustments to purchase price allocations 1 | 3.5 | ||
Additions through acquisitions 1 | 20.9 | ||
Reductions through divestitures | (6.0 | ) | |
Reductions from impairments | (0.4 | ) | |
Balance as of December 31, 2019 | 306.7 | ||
Reductions through divestitures | (0.7 | ) | |
Balance as of March 31, 2020 2 | $ | 306.0 |
(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 2020 | Cumulative Repurchases as of March 31, 2020 | |||||||||||||
Shares | Average Price | Shares | Average Price | |||||||||||
Share Repurchase Authorization | 529,303 | $ | 82.76 | 3,684,398 | $ | 84.19 |
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 March 31, 2020 | Level 1 | Level 2 | Level 3 | |||||||||
Measured on a recurring basis: | ||||||||||||
Derivative contract, net | $ | — | $ | 7.9 | $ | — |
Fair Value at December 31, 2019 | Level 1 | Level 2 | Level 3 | |||||||||
Measured on a recurring basis: | ||||||||||||
Derivative contract, net | $ | — | $ | 1.0 | $ | — |
March 31, 2020 | December 31, 2019 | |||||||
Carrying value | ||||||||
5.250% Senior notes due 2025 | $ | 300.0 | $ | 300.0 | ||||
4.625% Senior notes due 2027 | 400.0 | 400.0 | ||||||
Real estate mortgages and other debt | 479.0 | 466.6 | ||||||
$ | 1,179.0 | $ | 1,166.6 | |||||
Fair value | ||||||||
5.250% Senior notes due 2025 | $ | 270.0 | $ | 315.0 | ||||
4.625% Senior notes due 2027 | 346.5 | 412.0 | ||||||
Real estate mortgages and other debt | 527.4 | 468.7 | ||||||
$ | 1,143.9 | $ | 1,195.7 |
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 |
Three Months Ended March 31, | 2020 | 2019 | ||||||||||||||
(in millions, except per share data) | Class A | Class B | Class A | Class B | ||||||||||||
Net income applicable to common stockholders - basic | $ | 45.0 | $ | 1.2 | $ | 54.4 | $ | 2.0 | ||||||||
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 | 1.0 | — | 1.7 | — | ||||||||||||
Net income applicable to common stockholders - diluted | $ | 46.2 | $ | 1.2 | $ | 56.4 | $ | 2.0 | ||||||||
Weighted average common shares outstanding – basic | 22.7 | 0.6 | 22.3 | 0.8 | ||||||||||||
Conversion of Class B common shares into Class A common shares | 0.6 | — | 0.8 | — | ||||||||||||
Effect of employee stock purchases and restricted stock units on weighted average common shares | 0.2 | — | 0.1 | — | ||||||||||||
Weighted average common shares outstanding – diluted | 23.5 | 0.6 | 23.2 | 0.8 | ||||||||||||
Net income per common share - basic | $ | 1.99 | $ | 1.99 | $ | 2.43 | $ | 2.43 | ||||||||
Net income per common share - diluted | $ | 1.97 | $ | 1.97 | $ | 2.42 | $ | 2.42 |
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 | — | — | — |
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 March 31, | ||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2020 | 2019 | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Domestic | $ | 1,008,310 | $ | 893,156 | $ | 2,863,018 | $ | 2,495,468 | ||||||||||||||||
New vehicle retail | $ | 470.6 | $ | 492.4 | ||||||||||||||||||||
Used vehicle retail | 327.7 | 300.4 | ||||||||||||||||||||||
Used vehicle wholesale | 26.1 | 29.6 | ||||||||||||||||||||||
Finance and insurance | 45.1 | 41.8 | ||||||||||||||||||||||
Service, body and parts | 117.2 | 115.4 | ||||||||||||||||||||||
Fleet and other | 13.7 | 17.1 | ||||||||||||||||||||||
1,000.4 | 996.7 | |||||||||||||||||||||||
Import | 1,209,955 | 983,947 | 3,276,667 | 2,777,007 | ||||||||||||||||||||
New vehicle retail | 600.3 | 632.6 | ||||||||||||||||||||||
Used vehicle retail | 354.8 | 341.3 | ||||||||||||||||||||||
Used vehicle wholesale | 26.1 | 27.9 | ||||||||||||||||||||||
Finance and insurance | 58.1 | 54.8 | ||||||||||||||||||||||
Service, body and parts | 124.8 | 117.7 | ||||||||||||||||||||||
Fleet and other | 11.8 | 17.3 | ||||||||||||||||||||||
1,175.9 | 1,191.6 | |||||||||||||||||||||||
Luxury | 463,518 | 392,537 | 1,246,484 | 1,111,215 | ||||||||||||||||||||
New vehicle retail | 301.0 | 339.4 | ||||||||||||||||||||||
Used vehicle retail | 191.1 | 186.3 | ||||||||||||||||||||||
Used vehicle wholesale | 14.2 | 19.9 | ||||||||||||||||||||||
Finance and insurance | 16.9 | 16.5 | ||||||||||||||||||||||
Service, body and parts | 83.4 | 79.1 | ||||||||||||||||||||||
Fleet and other | 11.5 | 13.7 | ||||||||||||||||||||||
618.1 | 654.9 | |||||||||||||||||||||||
2,681,783 | 2,269,640 | 7,386,169 | 6,383,690 | 2,794.4 | 2,843.2 | |||||||||||||||||||
Corporate and other | (1,441 | ) | 327 | (2,690 | ) | 2,477 | 9.4 | 6.5 | ||||||||||||||||
$ | 2,680,342 | $ | 2,269,967 | $ | 7,383,479 | $ | 6,386,167 | $ | 2,803.8 | $ | 2,849.7 | |||||||||||||
Segment income1: | ||||||||||||||||||||||||
Domestic | $ | 31,141 | $ | 32,292 | $ | 84,440 | $ | 84,420 | $ | 27.8 | $ | 19.8 | ||||||||||||
Import | 36,954 | 32,934 | 91,365 | 86,878 | 24.7 | 30.0 | ||||||||||||||||||
Luxury | 7,515 | 7,423 | 22,542 | 21,736 | 1.6 | 8.0 | ||||||||||||||||||
75,610 | 72,649 | 198,347 | 193,034 | 54.1 | 57.8 | |||||||||||||||||||
Corporate and other | 34,541 | 26,794 | 111,281 | 81,881 | 46.8 | 52.5 | ||||||||||||||||||
Depreciation and amortization | (14,828 | ) | (12,206 | ) | (41,598 | ) | (36,372 | ) | (22.0 | ) | (19.8 | ) | ||||||||||||
Other interest expense | (9,905 | ) | (5,647 | ) | (23,745 | ) | (16,608 | ) | (17.0 | ) | (15.3 | ) | ||||||||||||
Other income (expense), net | 1,125 | (1,513 | ) | 11,357 | (4,534 | ) | ||||||||||||||||||
Other income, net | 2.3 | 2.6 | ||||||||||||||||||||||
Income before income taxes | $ | 86,543 | $ | 80,077 | $ | 255,642 | $ | 217,401 | $ | 64.2 | $ | 77.8 |
March 31, 2020 | December 31, 2019 | |||||||
Total assets: | ||||||||
Domestic | $ | 1,369.9 | $ | 1,467.6 | ||||
Import | 1,332.4 | 1,306.5 | ||||||
Luxury | 911.8 | 945.2 | ||||||
Corporate and other | 2,400.0 | 2,364.6 | ||||||
$ | 6,014.1 | $ | 6,083.9 |
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 |
March 31, 2020 | December 31, 2019 | |||||||
Operating lease liabilities: | ||||||||
Current portion included in accrued liabilities | $ | 25.4 | $ | 25.2 | ||||
Noncurrent operating lease liabilities | 231.3 | 238.5 | ||||||
Total operating lease liabilities | 256.7 | 263.7 | ||||||
Finance lease liabilities: | ||||||||
Current portion included in current maturities of long-term debt | 1.1 | 1.1 | ||||||
Long-term portion of lease liabilities in long-term debt | 29.2 | 29.5 | ||||||
Total finance lease liabilities 1 | 30.3 | 30.6 | ||||||
Total lease liabilities | $ | 287.0 | $ | 294.3 | ||||
Weighted-average remaining lease term: | ||||||||
Operating leases | 13 years | |||||||
Finance leases | 13 years | |||||||
Weighted-average discount rate: | ||||||||
Operating leases | 5.05 | % | ||||||
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 March 31, | Three Months Ended March 31, | |||||||
2020 | 2019 | |||||||
Operating lease cost 1 | $ | 11.9 | $ | 12.0 | ||||
Variable lease cost 2 | 0.9 | 0.8 | ||||||
Sublease income | (1.1 | ) | (1.0 | ) | ||||
Total lease costs | $ | 11.7 | $ | 11.8 |
Operating Leases | ||||
Remainder of 2020 | $ | 37.8 | ||
Year Ending December 31, | ||||
2021 | 34.8 | |||
2022 | 32.0 | |||
2023 | 27.1 | |||
2024 | 24.7 | |||
Thereafter | 202.9 | |||
Total minimum lease payments | 359.3 | |||
Less: | ||||
Present value adjustment | (102.6 | ) | ||
Operating lease liabilities | $ | 256.7 |
Three Months Ended March 31, | 2020 | |||
Revenue | $ | 12.7 | ||
Operating income | — |
Revenue | $ | 281,416 | |
Net income | $ | 4,378 |
Consideration | ||||
Cash paid, net of cash acquired | $ | 72.3 |
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 | $ | 24.7 | ||
Property and equipment, net | 0.5 | |||
Other non-current assets | 55.7 | |||
Floor plan notes payable | (7.3 | ) | ||
Other long-term liabilities | (1.3 | ) | ||
$ | 72.3 |
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 March 31, | ||||||||
2020 | 2019 | |||||||
Revenue | $ | 2,805.5 | $ | 2,871.8 | ||||
Net income | 46.3 | 56.8 | ||||||
Basic net income per share | 1.99 | 2.45 | ||||||
Diluted net income per share | 1.97 | 2.44 |
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 March 31, | |||||||||||
2020 | 2019 | Change | |||||||||
Revenues | |||||||||||
New vehicle retail | $ | 1,373.5 | $ | 1,461.1 | (6.0) | % | |||||
Used vehicle retail | 874.4 | 827.9 | 5.6 | ||||||||
Finance and insurance | 121.9 | 117.5 | 3.7 | ||||||||
Service, body and parts | 329.9 | 317.4 | 3.9 | ||||||||
Total Revenues | 2,803.8 | 2,849.7 | (1.6 | ) | |||||||
Gross profit | |||||||||||
New vehicle retail | $ | 78.2 | $ | 85.9 | (9.0) | % | |||||
Used vehicle retail | 90.0 | 84.6 | 6.4 | ||||||||
Finance and insurance | 121.9 | 117.5 | 3.7 | ||||||||
Service, body and parts | 168.1 | 159.5 | 5.4 | ||||||||
Total Gross Profit | 460.9 | 450.7 | 2.3 | ||||||||
Gross profit margins | |||||||||||
New vehicle retail | 5.7 | % | 5.9 | % | (20 | ) bps | |||||
Used vehicle retail | 10.3 | 10.2 | 10 | ||||||||
Finance and insurance | 100.0 | 100.0 | — | ||||||||
Service, body and parts | 51.0 | 50.2 | 80 | ||||||||
Total Gross Profit Margin | 16.4 | 15.8 | 60 | ||||||||
Retail units sold | |||||||||||
New vehicles | 35,907 | 39,695 | (9.5) | % | |||||||
Used vehicles | 42,631 | 40,675 | 4.8 | ||||||||
Average selling price per retail unit | |||||||||||
New vehicles | $ | 38,252 | $ | 36,809 | 3.9 | % | |||||
Used vehicles | 20,510 | 20,353 | 0.8 | ||||||||
Average gross profit per retail unit | |||||||||||
New vehicles | $ | 2,178 | $ | 2,165 | 0.6 | % | |||||
Used vehicles | 2,110 | 2,079 | 1.5 | ||||||||
Finance and insurance | 1,552 | 1,462 | 6.2 |
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 March 31, | |||||||||||
(Dollars in millions) | 2020 | 2019 | Change | ||||||||
Revenues | |||||||||||
New vehicle retail | $ | 1,281.5 | $ | 1,433.6 | (10.6) | % | |||||
Used vehicle retail | 831.6 | 809.7 | 2.7 | ||||||||
Finance and insurance | 114.5 | 115.3 | (0.7 | ) | |||||||
Service, body and parts | 311.0 | 309.3 | 0.5 | ||||||||
Total Revenues | 2,637.5 | 2,789.1 | (5.4 | ) | |||||||
Gross profit | |||||||||||
New vehicle retail | $ | 73.0 | $ | 84.6 | (13.7) | % | |||||
Used vehicle retail | 83.7 | 83.0 | 0.8 | ||||||||
Finance and insurance | 114.5 | 115.3 | (0.7 | ) | |||||||
Service, body and parts | 158.5 | 155.9 | 1.7 | ||||||||
Total Gross Profit | 432.6 | 442.1 | (2.1 | ) | |||||||
Gross profit margins | |||||||||||
New vehicle retail | 5.7 | % | 5.9 | % | (20 | ) bps | |||||
Used vehicle retail | 10.1 | 10.3 | (20 | ) | |||||||
Finance and insurance | 100.0 | 100.0 | — | ||||||||
Service, body and parts | 51.0 | 50.4 | 60 | ||||||||
Total Gross Profit Margin | 16.4 | 15.9 | 50 | ||||||||
Retail units sold | |||||||||||
New vehicles | 33,178 | 38,865 | (14.6) | % | |||||||
Used vehicles | 40,374 | 39,708 | 1.7 | ||||||||
Average selling price per retail unit | |||||||||||
New vehicles | $ | 38,625 | $ | 36,886 | 4.7 | % | |||||
Used vehicles | 20,597 | 20,390 | 1.0 | ||||||||
Average gross profit per retail unit | |||||||||||
New vehicles | $ | 2,200 | $ | 2,177 | 1.1 | % | |||||
Used vehicles | 2,073 | 2,091 | (0.9 | ) | |||||||
Finance and insurance | 1,557 | 1,468 | 6.1 |
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 March 31, | Increase (Decrease) | % Increase (Decrease) | |||||||||||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | ||||||||||||||||||||||||||||
(Dollars in millions) | 2020 | 2019 | Increase (Decrease) | % Increase (Decrease) | ||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||
Domestic | $ | 2,863,018 | $ | 2,495,468 | $ | 367,550 | 14.7 | % | $ | 1,000.4 | $ | 996.7 | $ | 3.7 | 0.4 | % | ||||||||||||||
Import | 3,276,667 | 2,777,007 | 499,660 | 18.0 | 1,175.9 | 1,191.6 | (15.7 | ) | (1.3 | ) | ||||||||||||||||||||
Luxury | 1,246,484 | 1,111,215 | 135,269 | 12.2 | 618.1 | 654.9 | (36.8 | ) | (5.6 | ) | ||||||||||||||||||||
7,386,169 | 6,383,690 | 1,002,479 | 15.7 | 2,794.4 | 2,843.2 | (48.8 | ) | (1.7 | ) | |||||||||||||||||||||
Corporate and other | (2,690 | ) | 2,477 | (5,167 | ) | NM | 9.4 | 6.5 | 2.9 | NM | ||||||||||||||||||||
$ | 7,383,479 | $ | 6,386,167 | $ | 997,312 | 15.6 | % | $ | 2,803.8 | $ | 2,849.7 | $ | (45.9 | ) | (1.6 | )% |
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 | % |
Three Months Ended March 31, | Increase (Decrease) | % Increase (Decrease) | |||||||||||||
(Dollars in millions) | 2020 | 2019 | |||||||||||||
Segment income1: | |||||||||||||||
Domestic | $ | 27.8 | $ | 19.8 | $ | 8.0 | 40.4 | % | |||||||
Import | 24.7 | 30.0 | (5.3 | ) | (17.7 | ) | |||||||||
Luxury | 1.6 | 8.0 | (6.4 | ) | (80.0 | ) | |||||||||
54.1 | 57.8 | (3.7 | ) | (6.4 | ) | ||||||||||
Corporate and other | 46.8 | 52.5 | (5.7 | ) | (10.9 | ) | |||||||||
Depreciation and amortization | (22.0 | ) | (19.8 | ) | 2.2 | 11.1 | |||||||||
Other interest expense | (17.0 | ) | (15.3 | ) | 1.7 | 11.1 | |||||||||
Other income, net | 2.3 | 2.6 | (0.3 | ) | NM | ||||||||||
Income before income taxes | $ | 64.2 | $ | 77.8 | $ | (13.6 | ) | (17.5 | )% |
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 | % Increase | Three Months Ended March 31, | Decrease | % Decrease | |||||||||||||||||||
2017 | 2016 | 2020 | 2019 | |||||||||||||||||||||
Retail new vehicle unit sales: | ||||||||||||||||||||||||
Domestic | 13,911 | 12,735 | 1,176 | 9.2 | % | 10,626 | 11,755 | (1,129 | ) | (9.6 | )% | |||||||||||||
Import | 26,621 | 21,467 | 5,154 | 24.0 | 19,842 | 21,821 | (1,979 | ) | (9.1 | ) | ||||||||||||||
Luxury | 5,029 | 4,287 | 742 | 17.3 | 5,491 | 6,192 | (701 | ) | (11.3 | ) | ||||||||||||||
45,561 | 38,489 | 7,072 | 18.4 | 35,959 | 39,768 | (3,809 | ) | (9.6 | ) | |||||||||||||||
Allocated to management | (109 | ) | (72 | ) | 37 | NM | (52 | ) | (73 | ) | (21 | ) | NM | |||||||||||
45,452 | 38,417 | 7,035 | 18.3 | % | 35,907 | 39,695 | (3,788 | ) | (9.5 | )% |
Nine Months Ended September 30, | Increase | % Increase | ||||||||||
2017 | 2016 | |||||||||||
Retail new vehicle unit sales: | ||||||||||||
Domestic | 39,407 | 35,176 | 4,231 | 12.0 | % | |||||||
Import | 69,643 | 59,581 | 10,062 | 16.9 | ||||||||
Luxury | 13,168 | 12,667 | 501 | 4.0 | ||||||||
122,218 | 107,424 | 14,794 | 13.8 | |||||||||
Allocated to management | (274 | ) | (199 | ) | 75 | NM | ||||||
121,944 | 107,225 | 14,719 | 13.7 | % |
Three Months Ended March 31, | Increase (Decrease) | % Increase (Decrease) | |||||||||||||
(Dollars in millions) | 2020 | 2019 | |||||||||||||
Revenue: | |||||||||||||||
New vehicle retail | $ | 470.6 | $ | 492.4 | $ | (21.8 | ) | (4.4 | )% | ||||||
Used vehicle retail | 327.7 | 300.4 | 27.3 | 9.1 | |||||||||||
Used vehicle wholesale | 26.1 | 29.6 | (3.5 | ) | (11.8 | ) | |||||||||
Finance and insurance | 45.1 | 41.8 | 3.3 | 7.9 | |||||||||||
Service, body and parts | 117.2 | 115.4 | 1.8 | 1.6 | |||||||||||
Fleet and other | 13.7 | 17.1 | (3.4 | ) | NM | ||||||||||
$ | 1,000.4 | $ | 996.7 | $ | 3.7 | 0.4 | |||||||||
Segment income | $ | 27.8 | $ | 19.8 | $ | 8.0 | 40.4 | ||||||||
Retail new vehicle unit sales | 10,626 | 11,755 | (1,129 | ) | (9.6 | ) |
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 |
Three Months Ended September 30, | Increase | % Increase | Three Months Ended March 31, | Increase (Decrease) | % Increase (Decrease) | |||||||||||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | ||||||||||||||||||||||||||||
Revenue | $ | 1,209,955 | $ | 983,947 | $ | 226,008 | 23.0 | % | ||||||||||||||||||||||
(Dollars in millions) | 2020 | 2019 | Increase (Decrease) | % Increase (Decrease) | ||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||
New vehicle retail | $ | 600.3 | $ | 632.6 | $ | (32.3 | ) | (5.1 | )% | |||||||||||||||||||||
Used vehicle retail | 354.8 | 341.3 | 13.5 | 4.0 | ||||||||||||||||||||||||||
Used vehicle wholesale | 26.1 | 27.9 | (1.8 | ) | (6.5 | ) | ||||||||||||||||||||||||
Finance and insurance | 58.1 | 54.8 | 3.3 | 6.0 | ||||||||||||||||||||||||||
Service, body and parts | 124.8 | 117.7 | 7.1 | 6.0 | ||||||||||||||||||||||||||
Fleet and other | 11.8 | 17.3 | (5.5 | ) | NM | |||||||||||||||||||||||||
$ | 1,175.9 | $ | 1,191.6 | $ | (15.7 | ) | (1.3 | ) | ||||||||||||||||||||||
Segment income | $ | 36,954 | $ | 32,934 | $ | 4,020 | 12.2 | $ | 24.7 | $ | 30.0 | $ | (5.3 | ) | (17.7 | ) | ||||||||||||||
Retail new vehicle unit sales | 26,621 | 21,467 | 5,154 | 24.0 | 19,842 | 21,821 | (1,979 | ) | (9.1 | ) |
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 |
Three Months Ended September 30, | Increase | % Increase | Three Months Ended March 31, | Increase (Decrease) | % Increase (Decrease) | |||||||||||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | ||||||||||||||||||||||||||||
Revenue | $ | 463,518 | $ | 392,537 | $ | 70,981 | 18.1 | % | ||||||||||||||||||||||
(Dollars in millions) | 2020 | 2019 | Increase (Decrease) | % Increase (Decrease) | ||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||
New vehicle retail | $ | 301.0 | $ | 339.4 | $ | (38.4 | ) | (11.3 | )% | |||||||||||||||||||||
Used vehicle retail | 191.1 | 186.3 | 4.8 | 2.6 | ||||||||||||||||||||||||||
Used vehicle wholesale | 14.2 | 19.9 | (5.7 | ) | (28.6 | ) | ||||||||||||||||||||||||
Finance and insurance | 16.9 | 16.5 | 0.4 | 2.4 | ||||||||||||||||||||||||||
Service, body and parts | 83.4 | 79.1 | 4.3 | 5.4 | ||||||||||||||||||||||||||
Fleet and other | 11.5 | 13.7 | (2.2 | ) | NM | |||||||||||||||||||||||||
$ | 618.1 | $ | 654.9 | $ | (36.8 | ) | (5.6 | ) | ||||||||||||||||||||||
Segment income | $ | 7,515 | $ | 7,423 | $ | 92 | 1.2 | $ | 1.6 | $ | 8.0 | $ | (6.4 | ) | (80.0 | ) | ||||||||||||||
Retail new vehicle unit sales | 5,029 | 4,287 | 742 | 17.3 | 5,491 | 6,192 | (701 | ) | (11.3 | ) |
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 |
Three Months Ended September 30, | Increase (Decrease) | % Increase (Decrease) | Three Months Ended March 31, | Increase (Decrease) | % Decrease | |||||||||||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | ||||||||||||||||||||||||||||
(Dollars in millions) | 2020 | 2019 | Increase (Decrease) | % Decrease | ||||||||||||||||||||||||||
Revenue, net | $ | (1,441 | ) | $ | 327 | $ | (1,768 | ) | (540.7 | )% | $ | 9.4 | $ | 6.5 | ||||||||||||||||
Segment income | $ | 34,541 | $ | 26,794 | $ | 7,747 | 28.9 | $ | 46.8 | $ | 52.5 | $ | (5.7 | ) | (10.9 | )% |
Nine Months Ended September 30, | Increase (Decrease) | % Increase (Decrease) | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | |||||||||||||
Revenue, net | $ | (2,690 | ) | $ | 2,477 | $ | (5,167 | ) | (208.6 | )% | |||||
Segment income | $ | 111,281 | $ | 81,881 | $ | 29,400 | 35.9 |
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 March 31, | ||||||||
(Dollars in millions) | 2020 | 2019 | ||||||
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 March 31, | Increase | % Increase | ||||||||||||||||||||
As a % of gross profit | 2017 | 2016 | ||||||||||||||||||||||
(Dollars in millions) | 2020 | 2019 | Increase | % Increase | ||||||||||||||||||||
Personnel | 45.3 | % | 45.0 | % | 30 | bp | $ | 228.5 | $ | 212.1 | ||||||||||||||
Advertising | 6.1 | 6.0 | 10 | 27.6 | 26.5 | 1.1 | 4.2 | |||||||||||||||||
Rent | 2.2 | 2.0 | 20 | 10.2 | 10.2 | — | — | |||||||||||||||||
Facility costs | 3.7 | 3.7 | — | |||||||||||||||||||||
Facility costs1 | 20.1 | 18.4 | 1.7 | 9.2 | ||||||||||||||||||||
Loss on sale of assets | 0.1 | — | 0.1 | NM | ||||||||||||||||||||
Other | 12.7 | 10.9 | 180 | 59.5 | 54.6 | 4.9 | 9.0 | |||||||||||||||||
Total SG&A | 70.0 | % | 67.6 | % | 240 | bp | $ | 346.0 | $ | 321.8 | $ | 24.2 | 7.5 | % |
Three Months Ended March 31, | Increase (Decrease) | ||||||||
As a % of gross profit | 2020 | 2019 | |||||||
Personnel | 49.6 | % | 47.1 | % | 250 | bp | |||
Advertising | 6.0 | 5.9 | 10 | ||||||
Rent | 2.2 | 2.3 | (10 | ) | |||||
Facility costs | 4.4 | 4.1 | 30 | ||||||
Loss on sale of assets | — | — | — | ||||||
Other | 12.9 | 12.0 | 90 | ||||||
Total SG&A | 75.1 | % | 71.4 | % | 370 | 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 |
Three Months Ended September 30, | Increase | % Increase | Three Months Ended March 31, | Increase | % Increase | |||||||||||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | ||||||||||||||||||||||||||||
(Dollars in millions) | 2020 | 2019 | Increase | % Increase | ||||||||||||||||||||||||||
Personnel | $ | 182,443 | $ | 151,803 | $ | 30,640 | 20.2 | % | $ | 228.5 | $ | 212.1 | ||||||||||||||||||
Advertising | 24,572 | 20,110 | 4,462 | 22.2 | 27.6 | 26.5 | 1.1 | 4.2 | ||||||||||||||||||||||
Rent | 8,768 | 6,694 | 2,074 | 31.0 | 10.2 | 10.2 | — | — | ||||||||||||||||||||||
Adjusted facility costs | 14,992 | 12,489 | 2,503 | 20.0 | ||||||||||||||||||||||||||
Facility costs1 | 20.1 | 18.4 | 1.7 | 9.2 | ||||||||||||||||||||||||||
Adjusted loss on sale of assets | 0.2 | — | 0.2 | NM | ||||||||||||||||||||||||||
Adjusted other | 46,246 | 37,038 | 9,208 | 24.9 | 58.2 | 54.5 | 3.7 | 6.8 | ||||||||||||||||||||||
Adjusted total SG&A | $ | 277,021 | $ | 228,134 | $ | 48,887 | 21.4 | % | $ | 344.8 | $ | 321.7 | $ | 23.1 | 7.2 | % |
Three Months Ended September 30, | Increase | Three Months Ended March 31, | Increase (Decrease) | |||||||||||||||
As a % of gross profit | 2017 | 2016 | 2020 | 2019 | ||||||||||||||
Personnel | 45.3 | % | 45.0 | % | 30 | bp | 49.6 | % | 47.1 | % | 250 | bp | ||||||
Advertising | 6.1 | % | 6.0 | % | 10 | 6.0 | 5.9 | 10 | ||||||||||
Rent | 2.2 | % | 2.0 | % | 20 | 2.2 | 2.3 | (10 | ) | |||||||||
Adjusted facility costs | 3.7 | % | 3.7 | % | — | |||||||||||||
Facility costs | 4.4 | 4.1 | 30 | |||||||||||||||
Adjusted loss on sale of assets | — | — | — | |||||||||||||||
Adjusted other | 11.4 | % | 10.9 | % | 50 | 12.6 | 12.0 | 60 | ||||||||||
Adjusted total SG&A | 68.7 | % | 67.6 | % | 110 | bp | 74.8 | % | 71.4 | % | 340 | bp |
Nine Months Ended September 30, | Increase | % Increase | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | |||||||||||||
Personnel | $ | 513,439 | $ | 445,055 | $ | 68,384 | 15.4 | % | |||||||
Advertising | 67,516 | 59,229 | 8,287 | 14.0 | % | ||||||||||
Rent | 23,216 | 20,040 | 3,176 | 15.8 | % | ||||||||||
Adjusted facility costs | 44,371 | 32,007 | 12,364 | 38.6 | % | ||||||||||
Adjusted other | 122,526 | 105,616 | 16,910 | 16.0 | % | ||||||||||
Adjusted total SG&A | $ | 771,068 | $ | 661,947 | $ | 109,121 | 16.5 | % |
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 | % | — | ||||
Adjusted facility costs | 4.0 | % | 3.3 | % | 70 | ||||
Adjusted other | 10.9 | % | 11.0 | % | (10 | ) | |||
Adjusted total SG&A | 68.8 | % | 68.5 | % | 30 | bp |
Three Months Ended September 30, | Increase | % Increase | Three Months Ended March 31, | Increase | % Increase | |||||||||||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | ||||||||||||||||||||||||||||
(Dollars in millions) | 2020 | 2019 | Increase | % Increase | ||||||||||||||||||||||||||
Depreciation and amortization | $ | 14,828 | $ | 12,206 | $ | 2,622 | 21.5 | % | $ | 22.0 | $ | 19.8 |
Nine Months Ended September 30, | Increase | % Increase | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | |||||||||||||
Depreciation and amortization | $ | 41,598 | $ | 36,372 | $ | 5,226 | 14.4 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended March 31, | ||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2020 | 2019 | |||||||||||||
Operating margin | 4.0 | % | 4.1 | % | 4.0 | % | 4.0 | % | 3.3 | % | 3.8 | % | ||||||
Operating margin adjusted for non-core charges 1 | 4.1 | % | 4.3 | % | 4.2 | % | 4.2 | % | 3.4 | % | 3.8 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended March 31, | |||||||||||||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | % Change | 2017 | 2016 | % Change | |||||||||||||||||||||||
(Dollars in millions) | 2020 | 2019 | % Change | ||||||||||||||||||||||||||
Floor plan interest expense (new vehicles) | 10,629 | 6,186 | 71.8 | % | 28,013 | 18,304 | 53.0 | % | $ | 14.0 | $ | 18.1 | (22.7 | )% |
Three Months Ended March 31, | % | ||||||||||||||
(Dollars in millions) | 2020 | 2019 | Change | Change | |||||||||||
Floor plan interest expense (new vehicles) | $ | 14.0 | $ | 18.1 | $ | (4.1 | ) | (22.7 | )% | ||||||
Floor plan assistance (included as an offset to cost of sales) | (14.9 | ) | (15.1 | ) | 0.2 | (1.3 | ) | ||||||||
Net new vehicle carrying costs | $ | (0.9 | ) | $ | 3.0 | $ | (3.9 | ) | NM |
Three Months Ended September 30, | % | ||||||||||||||
(Dollars in thousands) | 2017 | 2016 | Change | Change | |||||||||||
Floor plan interest expense (new vehicles) | $ | 10,629 | $ | 6,186 | $ | 4,443 | 71.8 | % | |||||||
Floor plan assistance (included as an offset to cost of sales) | (15,130 | ) | (12,044 | ) | (3,086 | ) | 25.6 | ||||||||
Net new vehicle carrying costs | $ | (4,501 | ) | $ | (5,858 | ) | $ | 1,357 | (23.2 | )% |
Nine Months Ended September 30, | % | ||||||||||||||
(Dollars in thousands) | 2017 | 2016 | Change | Change | |||||||||||
Floor plan interest expense (new vehicles) | $ | 28,013 | $ | 18,304 | $ | 9,709 | 53.0 | % | |||||||
Floor plan assistance (included as an offset to cost of sales) | (40,186 | ) | (33,614 | ) | (6,572 | ) | 19.6 | ||||||||
Net new vehicle carrying costs | $ | (12,173 | ) | $ | (15,310 | ) | $ | 3,137 | (20.5 | )% |
Three Months Ended September 30, | Increase | % Increase | Three Months Ended March 31, | Increase (Decrease) | % Increase (Decrease) | |||||||||||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | ||||||||||||||||||||||||||||
(Dollars in millions) | 2020 | 2019 | Increase (Decrease) | % Increase (Decrease) | ||||||||||||||||||||||||||
Mortgage interest | $ | 4,964 | $ | 3,787 | $ | 1,177 | 31.1 | $ | 6.6 | $ | 6.9 | |||||||||||||||||||
Other interest | 5,092 | 1,939 | 3,153 | 162.6 | 10.8 | 9.0 | 1.8 | 20.0 | ||||||||||||||||||||||
Capitalized interest | (151 | ) | (79 | ) | 72 | 91.1 | (0.4 | ) | (0.6 | ) | (0.2 | ) | NM | |||||||||||||||||
Total other interest expense | $ | 9,905 | $ | 5,647 | 4,258 | 75.4 | % | $ | 17.0 | $ | 15.3 | $ | 1.7 | 11.1 | % |
Nine Months Ended September 30, | Increase | % Increase | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | |||||||||||||
Mortgage interest | $ | 14,049 | $ | 11,034 | $ | 3,015 | 27.3 | % | |||||||
Other interest | 10,040 | 5,889 | 4,151 | 70.5 | |||||||||||
Capitalized interest | (344 | ) | (315 | ) | 29 | 9.2 | |||||||||
Total other interest expense | $ | 23,745 | $ | 16,608 | 7,137 | 43.0 | % |
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 March 31, | ||||
2020 | 2019 | |||
Effective income tax rate | 28.0% | 27.5% |
Three Months Ended September 30, 2017 | Three Months Ended March 31, 2020 | |||||||||||||||||||||||||||||||||||
(Dollars in Thousands, Except per Share Amounts) | As reported | Insurance reserves | Acquisition expenses | 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 | $ | 282,241 | $ | (1,704 | ) | $ | (3,516 | ) | $ | 277,021 | $ | 346.0 | $ | (0.5 | ) | $ | 0.1 | $ | (0.8 | ) | $ | 344.8 | ||||||||||||||
Operating income | 105,952 | 1,704 | 3,516 | 111,172 | 92.9 | 0.5 | (0.1 | ) | 0.8 | 94.1 | ||||||||||||||||||||||||||
Income before income taxes | $ | 86,543 | $ | 1,704 | $ | 3,516 | $ | 91,763 | $ | 64.2 | $ | 0.5 | $ | (0.1 | ) | $ | 0.8 | $ | 65.4 | |||||||||||||||||
Income tax provision | (34,657 | ) | (943 | ) | (1,380 | ) | (36,980 | ) | (18.0 | ) | (0.1 | ) | — | (0.2 | ) | (18.3 | ) | |||||||||||||||||||
Net income | $ | 51,886 | $ | 761 | $ | 2,136 | $ | 54,783 | $ | 46.2 | $ | 0.4 | $ | (0.1 | ) | $ | 0.6 | $ | 47.1 | |||||||||||||||||
Diluted net income per share | $ | 2.07 | $ | 0.03 | $ | 0.08 | $ | 2.18 | $ | 1.97 | $ | 0.02 | $ | — | $ | 0.02 | $ | 2.01 | ||||||||||||||||||
Diluted share count | 25,076 | 23.5 |
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 | ||||||||||||||||||||
(Dollars in thousands, except per share amounts) | As reported | Insurance reserves | Acquisition expenses | OEM settlement | Adjusted | |||||||||||||||
Selling, general and administrative | $ | 782,303 | $ | (5,582 | ) | $ | (5,653 | ) | $ | — | $ | 771,068 | ||||||||
Operating income | 296,043 | 5,582 | 5,653 | — | 307,278 | |||||||||||||||
Other (expense) income, net | 11,357 | — | — | (9,111 | ) | 2,246 | ||||||||||||||
Income (loss) before income taxes | $ | 255,642 | $ | 5,582 | $ | 5,653 | $ | (9,111 | ) | $ | 257,766 | |||||||||
Income tax (provision) benefit | (99,829 | ) | (2,174 | ) | (2,201 | ) | 3,423 | (100,781 | ) | |||||||||||
Net income (loss) | $ | 155,813 | $ | 3,408 | $ | 3,452 | $ | (5,688 | ) | $ | 156,985 | |||||||||
Diluted net income (loss) per share | $ | 6.19 | $ | 0.14 | $ | 0.14 | $ | (0.23 | ) | $ | 6.24 | |||||||||
Diluted share count | 25,158 |
Three Months Ended March 31, 2019 | ||||||||||||||||||||
(Dollars in millions, except per share amounts) | As reported | Acquisition expenses | Net disposal gain on sale of stores | Asset impairments | Adjusted | |||||||||||||||
Asset impairment | $ | 0.5 | $ | — | $ | — | $ | (0.5 | ) | $ | — | |||||||||
Selling, general and administrative | 321.8 | (0.2 | ) | 0.1 | — | 321.7 | ||||||||||||||
Operating income | 108.6 | 0.2 | (0.1 | ) | 0.5 | 109.2 | ||||||||||||||
Income before income taxes | $ | 77.8 | $ | 0.2 | $ | (0.1 | ) | $ | 0.5 | $ | 78.4 | |||||||||
Income tax provision | (21.4 | ) | (0.1 | ) | — | (0.1 | ) | (21.6 | ) | |||||||||||
Net income | $ | 56.4 | $ | 0.1 | $ | (0.1 | ) | $ | 0.4 | $ | 56.8 | |||||||||
Diluted net income per share | $ | 2.42 | $ | 0.01 | $ | — | $ | 0.01 | $ | 2.44 | ||||||||||
Diluted share count | 23.2 |
Nine Months Ended September 30, 2016 | ||||||||||||||||||||
(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 | ) | $ | — | $ | — | |||||||||
Selling, general and administrative | 662,766 | 1,087 | — | (1,906 | ) | 661,947 | ||||||||||||||
Operating Income (expense) | 256,847 | (1,087 | ) | 10,494 | 1,906 | 268,160 | ||||||||||||||
Other (expense) income, net | (4,534 | ) | — | 6,197 | — | 1,663 | ||||||||||||||
Income (loss) before income taxes | $ | 217,401 | $ | (1,087 | ) | $ | 16,691 | $ | 1,906 | $ | 234,911 | |||||||||
Income tax (provision) benefit | (71,662 | ) | 426 | (20,374 | ) | (747 | ) | (92,357 | ) | |||||||||||
Net income (loss) | $ | 145,739 | $ | (661 | ) | $ | (3,683 | ) | $ | 1,159 | $ | 142,554 | ||||||||
Diluted net income (loss) per share | $ | 5.69 | $ | (0.03 | ) | $ | (0.14 | ) | $ | 0.05 | $ | 5.57 | ||||||||
Diluted share count | 25,598 |
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) | Three Months Ended March 31, | Increase (Decrease) | |||||||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | in Cash Flow | |||||||||||||||||||||
(Dollars in millions) | 2020 | 2019 | in Cash Flow | |||||||||||||||||||||
Net cash provided by operating activities | $ | 260,536 | $ | 194,240 | $ | 66,296 | $ | 121.7 | $ | 77.2 | $ | 44.5 | ||||||||||||
Net cash used in investing activities | (464,917 | ) | (289,484 | ) | (175,433 | ) | (118.3 | ) | (35.3 | ) | (83.0 | ) | ||||||||||||
Net cash provided by financing activities | 192,676 | 74,352 | 118,324 | |||||||||||||||||||||
Net cash used in financing activities | (30.8 | ) | (28.5 | ) | (2.3 | ) |
Nine Months Ended September 30, | Increase (Decrease) | |||||||||||
(Dollars in thousands) | 2017 | 2016 | in Cash Flow | |||||||||
Net cash provided by operating activities – as reported | $ | 260,536 | $ | 194,240 | $ | 66,296 | ||||||
Add: Net borrowings on floor plan notes payable, non-trade | 34,056 | 93,817 | (59,761 | ) | ||||||||
Less: Borrowings on floor plan notes payable, non-trade associated with acquired new vehicle inventory | (85,527 | ) | (88,147 | ) | 2,620 | |||||||
Net cash provided by operating activities – adjusted | $ | 209,065 | $ | 199,910 | $ | 9,155 |
Three Months Ended March 31, | Increase (Decrease) | |||||||||||
(Dollars in millions) | 2020 | 2019 | in Cash Flow | |||||||||
Net cash provided by operating activities – as reported | $ | 121.7 | $ | 77.2 | $ | 44.5 | ||||||
Add: Net (repayments) borrowings on floor plan notes payable, non-trade | (43.5 | ) | 43.5 | (87.0 | ) | |||||||
Less: Borrowings on floor plan notes payable, non-trade associated with acquired new vehicle inventory | (14.1 | ) | — | (14.1 | ) | |||||||
Net cash provided by operating activities – adjusted | $ | 64.1 | $ | 120.7 | $ | (56.6 | ) |
Nine Months Ended September 30, | Increase (Decrease) | Three Months Ended March 31, | Increase (Decrease) | |||||||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | in Cash Flow | |||||||||||||||||||||
(Dollars in millions) | 2020 | 2019 | in Cash Flow | |||||||||||||||||||||
Capital expenditures | $ | (72,174 | ) | $ | (81,363 | ) | $ | 9,189 | $ | (41.6 | ) | $ | (29.1 | ) | $ | (12.5 | ) | |||||||
Cash paid for acquisitions, net of cash acquired | (400,558 | ) | (199,435 | ) | (201,123 | ) | (72.3 | ) | — | (72.3 | ) | |||||||||||||
Cash paid for other investments | (7,929 | ) | (22,279 | ) | 14,350 | (9.3 | ) | (6.6 | ) | (2.7 | ) | |||||||||||||
Proceeds from sales of stores | 3,417 | 11,837 | (8,420 | ) | 4.7 | — | 4.7 |
Nine Months Ended September 30, | Three Months Ended March 31, | |||||||||||||||
(Dollars in thousands) | 2017 | 2016 | ||||||||||||||
(Dollars in millions) | 2020 | 2019 | ||||||||||||||
Post-acquisition capital improvements | $ | 19,893 | $ | 37,714 | $ | 14.1 | $ | 6.3 | ||||||||
Facilities for open points | 714 | 32 | 0.8 | 0.2 | ||||||||||||
Purchases of previously leased facilities | — | 27,381 | ||||||||||||||
Purchase of facilities for existing operations | 5.9 | 1.5 | ||||||||||||||
Existing facility improvements | 26,400 | 11,810 | 16.4 | 10.8 | ||||||||||||
Maintenance | 25,167 | 4,426 | 4.4 | 10.3 | ||||||||||||
Total capital expenditures | $ | 72,174 | $ | 81,363 | $ | 41.6 | $ | 29.1 |
Nine Months Ended September 30, | Three Months Ended March 31, | |||||||||||||||
2017 | 2016 | 2020 | 2019 | |||||||||||||
Number of stores acquired | 15 | 13 | 2 | — | ||||||||||||
Number of stores opened | 1 | 1 | ||||||||||||||
Number of franchises added | — | 1 | ||||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||
Cash paid for acquisitions, net of cash acquired | $ | 400,558 | $ | 199,435 | $ | 72.3 | $ | — | ||||||||
Less: Borrowings on floor plan notes payable: non-trade associated with acquired new vehicle inventory | (85,527 | ) | (88,147 | ) | (14.1 | ) | — | |||||||||
Cash paid for acquisitions, net of cash acquired – adjusted | $ | 315,031 | $ | 111,288 | $ | 58.2 | $ | — |
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 |
Three Months Ended March 31, | Increase (Decrease) | |||||||||||
(Dollars in millions) | 2020 | 2019 | in Cash Flow | |||||||||
Cash used in financing activities, as reported | $ | (30.8 | ) | $ | (28.5 | ) | $ | (2.3 | ) | |||
Adjust: Borrowings (repayments) on floor plan notes payable: non-trade | 43.5 | (43.5 | ) | 87.0 | ||||||||
Cash provided by (used in) financing activities – adjusted | $ | 12.7 | $ | (72.0 | ) | $ | 84.7 |
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 | ) |
Three Months Ended March 31, | Increase (Decrease) | |||||||||||
(Dollars in millions) | 2020 | 2019 | in Cash Flow | |||||||||
Net borrowings (repayments) on lines of credit | $ | 55.0 | $ | (55.0 | ) | $ | 110.0 | |||||
Proceeds from issuance of long-term debt | 17.2 | — | 17.2 | |||||||||
Repurchases of common stock | (48.2 | ) | (3.1 | ) | (45.1 | ) | ||||||
Dividends paid | (7.0 | ) | (6.7 | ) | (0.3 | ) |
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 2020 | $ | 0.30 | $ | 7.0 |
As of September 30, 2017 | As of March 31, 2020 | |||||||||||||||||||
(Dollars in thousands) | Outstanding | Remaining Available | ||||||||||||||||||
(Dollars in millions) | Outstanding | Remaining Available | ||||||||||||||||||
Floor plan note payable: non-trade | $ | 1,598,111 | $ | — | 1 | $ | 1,595.9 | $ | — | 1 | ||||||||||
Floor plan notes payable | 114,833 | — | 389.9 | — | ||||||||||||||||
Used vehicle inventory financing facility | 5,000 | 45,000 | 2 | |||||||||||||||||
Used and service loaner vehicle inventory financing commitments | 204.0 | 162.9 | 2 | |||||||||||||||||
Revolving lines of credit | 221,654 | 223,831 | 2, 3 | — | 338.8 | 2, 3 | ||||||||||||||
Real estate mortgages | 476,559 | — | 608.9 | — | ||||||||||||||||
5.25% Senior Subordinated Notes due 2025 | 300,000 | — | ||||||||||||||||||
5.250% Senior notes due 2025 | 300.0 | — | ||||||||||||||||||
4.625% Senior notes due 2027 | 400.0 | — | ||||||||||||||||||
Other debt | 12,699 | — | 33.1 | — | ||||||||||||||||
Total debt outstanding | 2,728,856 | 268,831 | 3,531.8 | 501.7 | ||||||||||||||||
Less: unamortized debt issuance costs | (6,960 | ) | — | (10.4 | ) | — | ||||||||||||||
Total debt | $ | 2,721,896 | $ | 268,831 | $ | 3,521.4 | $ | 501.7 |
Debt Covenant Ratio | Requirement | As of | |||
Current ratio | Not less than 1.10 to 1 | 1.34 to 1 | |||
Fixed charge coverage ratio | Not less than 1.20 to 1 | 2.68 to 1 | |||
Leverage ratio | Not more than | 2.67 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 | |||||||||||
July | 20,000 | $ | 97.69 | 20,000 | $ | 169,411 | ||||||||
August | 23,157 | 103.23 | 23,000 | 167,037 | ||||||||||
September | 20,000 | 113.16 | 20,000 | 164,774 | ||||||||||
63,157 | $ | 104.62 | 63,000 | $ | 164,774 |
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 | |||||||||||
January | — | $ | — | — | $ | 233,603 | ||||||||
February | — | — | — | 233,603 | ||||||||||
March | 558,930 | 86.15 | 529,303 | 189,796 | ||||||||||
558,930 | $ | 86.15 | 529,303 | $ | 189,796 |
Restated Articles of Incorporation of Lithia Motors, Inc. | |
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 | Inline XBRL Instance |
101.SCH | Inline XBRL Taxonomy Extension Schema Document. |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
104 | Cover page formatted as Inline XBRL and contained in Exhibit 101. |
Date: | LITHIA MOTORS, INC. |
By: /s/ Tina Miller | |
Senior Vice President and Chief Financial Officer | |
(Duly Authorized Officer and Principal Financial and | |
Accounting Officer) |