4Q23 & FY23 Financial Results
Non-GAAP Financial Measures, Same Store Data, and Other Data
In addition to evaluating the financial condition and results of our operations in accordance with U.S. GAAP, from time to time our management evaluates and analyzes
results and any impact on the Company of strategic decisions and actions relating to, among other things, cost reduction, growth, profitability improvement initiatives, and
other events outside of normal, or "core," business and operations, by considering alternative financial measures not prepared in accordance with U.S. GAAP. In our
evaluation of results from time to time, we exclude items that do not arise directly from core operations, such as non-cash asset impairment charges, out-of-period
adjustments, legal matters, gains and losses on dealership franchise or real estate transactions, and catastrophic events, such as hailstorms, hurricanes, and snow storms.
Because these
also evaluates on-core charges and gains materially affect the Company's financial condition or results in the specific period in which they are recognized, management
makes resource allocation and performance evaluation decisions based on, the related non-GAAP measures excluding such items. This includes
evaluating measures such as adjusted selling, general and administrative expenses, adjusted net income, adjusted diluted earnings per share, and constant currency.
These adjusted measures are not measures of financial performance under U.S. GAAP, but are instead considered non-GAAP financial performance measures. Non-GAAP
measures do not have definitions under U.S. GAAP and may be defined differently by, and not be comparable to similarly titled measures used by, other companies. As a
result, any non-GAAP financial measures considered and evaluated by management are reviewed in conjunction with a review of the most directly comparable measures
calculated in accordance with U.S. GAAP. We caution investors not to place undue reliance on such non-GAAP measures, but also to consider them with the most directly
comparable U.S. GAAP measures.
In addition to using such non-GAAP measures to evaluate results in a specific period, management believes that such measures may provide more complete and
consistent comparisons of operational performance on a period-over-period historical basis and a better indication of expected future trends. Our management also uses
these adjusted measures in conjunction with U.S. GAAP financial measures to assess our business, including communication with our Board of Directors, investors, and
industry analysts concerning financial performance. We disclose these non-GAAP measures, and the related reconciliations, because we believe investors use these
metrics in evaluating longer-term period-over-period performance, and to allow investors to better understand and evaluate the information used by management to assess
operating performance. The exclusion of certain expenses in the calculation of non-GAAP financial measures should not be construed as an inference that these costs are
unusual or infrequent. We anticipate excluding these expenses in the future presentation of our non-GAAP financial measures.
In addition, we evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure,
excludes the impact of fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information
regarding our underlying business and results of operations, consistent with how we evaluate our performance. We calculate constant currency percentages by converting
our current period reported results for entities reporting in currencies other than U.S. dollars using comparative period exchange rates rather than the actual exchange
rates in effect during the respective periods. The constant currency performance measures should not be considered a substitute for, or superior to, the measures of
financial performance prepared in accordance with U.S. GAAP. The Same Store amounts presented include the results of dealerships for the identical months in each
period presented in comparison, commencing with the first full month in which the dealership was owned by us and, in the case of dispositions, ending with the last full
month it was owned by us. Same Store results also include the activities of our corporate headquarters.
Certain amounts in the financial statements may not compute due to rounding. All computations have been calculated using unrounded amounts for all periods presented.View entire presentation