GROUP 1 AUTOMOTIVE INC 10-Q

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations This Management’s Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements that involve risks and uncertainties. Actual results of Group 1 Automotive, Inc. may differ materially from those discussed in the forward-looking statements because of various factors. See “Cautionary Statement about Forward - Looking Statements.” Unless the context requires otherwise, references to “we,” “us” and “our” are intended to mean the business and operations of Group 1 Automotive, Inc. and its subsidiaries. Overview We are a leading operator in the automotive retail industry. Through our dealerships, we sell new and used cars and light trucks; arrange related vehicle financing; sell service and other insurance contracts; provide automotive maintenance and repair services; and sell vehicle parts. Our operations are aligned into three regions, which comprise our reportable segments: the U.S., U.K. and Brazil. The U.S. and Brazil segments are led by the President, U.S. and Brazilian Operations, and the U.K. segment is led by an Operations Director, each reporting directly to our Chief Executive Officer, who is the CODM. The President, U.S. and Brazilian Operations and the U.K. Operations Director are responsible for the overall performance of their respective regions, as well as for overseeing field level management. As of June 30, 2021, our retail network consisted of 117 dealerships in the U.S., 48 dealerships in the U.K. and 16 dealerships in Brazil. Our operations are primarily located in major metropolitan areas in 15 states in the U.S., 33 towns in the U.K. and three states in Brazil. Long-Term Strategy Our business strategy focuses on improving the performance of our existing dealerships and enhancing our dealership portfolio through strategic acquisitions and dispositions to achieve growth, capture market share and maximize the investment return to our stockholders. We constantly evaluate opportunities to improve the overall profitability of our dealerships. We believe that as of June 30, 2021 , we have sufficient financial resources to support additional acquisitions. Further, we intend to continue to critically evaluate our return on invested capital in our current dealership portfolio for disposition opportunities. For 2021, our priorities are growing our company through acquisitions, improving and growing sales penetration in our digital retailing platform, AcceleRide®, continuing to grow our parts and service gross profit through numerous initiatives, increasing our market share in the highly fragmented used vehicle business, continuing to leverage our SG&A as a percentage of gross profit and focusing on the retention and training of our talented dealership employees. Strategic Acquisitions and Dispositions We will continue to focus on opportunities to enhance our current dealership portfolio through strategic acquisitions and improving or disposing of underperforming dealerships. We believe that substantial opportunities for growth through acquisitions remain in our industry in the U.S., U.K. and Brazil. Acquisitions capitalize on economies of scale and cost savings opportunities in our existing markets in areas such as used vehicle sourcing, advertising, purchasing, data processing and personnel utilization, thereby increasing operating efficiency. We seek to acquire dealerships where we have strategic opportunities that represent growing brands in growth markets. We evaluate all brands and geographies to expand our brand, product and service offerings in our existing markets or expand into growing geographic areas we currently do not serve. During the first quarter of 2021, we acquired two Toyota dealerships in the U.S. In July, we announced the acquisition of seven dealerships in the U.K. The expected aggregate annualized revenues, estimated at the time of acquisition, for both the U.S. and U.K. acquisitions, were $420.0 million. Further, we intend to continue to critically evaluate our return on invested capital in our current dealership portfolio for disposition opportunities. Refer to Note 3. Acquisitions and Dispositions within our Notes to Condensed Consolidated Financial Statements for further discussion. 22 Table of Contents Digital Initiatives to Enhance the Customer Experience Our omnichannel platforms focus on ensuring that we can do business with our customers where and when they want to do business. Our online retail platform, AcceleRide®, which was deployed to all of our U.S. dealerships in 2019, allows a customer to complete a vehicle transaction entirely online or start the sales process online and complete the transaction at one of our dealerships. The customer also has the ability to apply for financing and review and select F&I products as part of the online process. During the three months ended June 30, 2021, U.S. total online retail unit sales increased 111.3% compared to the same period in 2020. We also completed the roll out of AcceleRide® to our U.K. dealerships in the first quarter of 2021. Our parts and service digital efforts focus on our online customer scheduling appointment system. We have seen continued growth in the percentage of appointments scheduled online over the past few years as we have continued to enhance this tool. We have also focused on improved interaction with our parts and service customers by offering preferred communication options via dealership apps, phone, text or email and online payment options. We are capitalizing on technology advances in robotic process automation and artificial intelligence to improve our marketing, call center and back office efficiency. These digital platforms were instrumental in allowing us to connect with and service our customers during the social distancing requirements imposed as a result of the COVID-19 pandemic. Parts and Service Growth We remain focused on sustained growth in our higher margin parts and service operations which continue to hinge on the retention and hiring of skilled service technicians and advisors. Our U.S. service operations are reimplementing a four-day work week for service technicians and advisors which allows us to expand our hours of operations during the week. This change has resulted in increased service technician and advisor retention, thereby expanding our service capacity without investing additional capital in facilities. Our online service appointment platform and centralized call centers have improved the customer experience. We seek to increase the retention of our customers through more convenient service hours, training of our service advisors, selling service contracts with vehicles sales and customer relationship management software that allows us to provide targeted marketing to our customers. The increasing complexity of vehicles, especially in the area of electronics and technological advancements, is making it increasingly difficult for independent repair shops to maintain the expertise and technology to work on these vehicles and provides us the opportunity to increase our market share well into the future. Used Vehicle Retail Growth Used vehicle gross profit depends primarily on a dealership’s ability to obtain a high-quality supply of used vehicles at reasonable prices. Our new vehicle operations generally provide our used vehicle operations with a large supply of high-quality trade-ins and off-lease vehicles, which are our best source of used vehicle inventory. In October 2020, we introduced “Sell A Ride” to our AcceleRide® platform to increase our ability to purchase used vehicle inventory directly from customers with a cash offer within 30 minutes during business hours, home pickup and immediate payment through Zelle. Our dealerships supplement their used vehicle inventory with purchases at auctions, including manufacturer-sponsored auctions available only to franchised dealers. Our data driven pricing strategies ensure that our used vehicles are priced at market to generate more traffic to our websites. We review our market pricing on a constant basis and work to limit discounting from our advertised prices. Cost Management We continue our efforts to fully leverage our scale and cost structure. As our business evolves, we will manage our costs carefully and look for additional opportunities to improve our processes and disseminate best practices. We believe that our management structure supports rapid decision making and facilitates an efficient and effective roll-out of new processes. As part of the digital efforts discussed above, we have improved our productivity for our sales and service departments. Employee Training and Retention A key to the execution of our business strategy is the leverage of what we believe to be one of our key strengths — the talent of our people. We are focused on the retention and training of our talented dealership employees. We believe that we have developed a distinguished management team with substantial industry expertise. With our management structure and level of executive talent, we plan to continue empowering the operators of our dealerships to make appropriate decisions to grow their respective dealership operations and to control fixed and variable costs. We believe this approach allows us to provide the best possible service to our customers, as well as attract and retain talented employees. 23 Table of Contents Diversity, Equity and Inclusion (“DEI”) We have a DEI council that is chaired by our Chief Diversity Officer. The council’s mission is to foster a diverse and inclusive culture where employees of all backgrounds are respected, valued and developed. We enhance employee engagement in the areas of diversity, equity and inclusion by offering innovative training, recruitment and career path development where a sense of belonging is apparent throughout the organization. The council has four primary areas of focus: Workforce, Workplace, Community Involvement and Women’s Initiative. The council consists of a diverse group of employees providing representation across the organization. Each area has an employee chairperson as well as an executive sponsor. In addition, employees participate in on-going diversity and inclusion training programs which were developed for us. COVID-19 Pandemic and New Vehicle Inventory Levels Our operations have recovered significantly from the COVID-19 pandemic. In the U.K., our dealership showrooms reopened in the second quarter of 2021 and in Brazil, our dealerships were fully open in the second quarter of 2021 after both markets were closed for all or part of prior quarters due to government mandated closures related to the COVID-19 pandemic. Our dealerships adhere to health and safety policies and practices to allow employees to return to work safely. We cannot predict the future impact of COVID-19 pandemic on our business. Additionally, our manufacturers’ production is currently at reduced levels as a result of global semiconductor chip shortages, which is impacting our new vehicle sales and inventory levels in all our markets. The increased demand for new vehicles and reduced production levels have significantly reduced our new vehicle inventory levels. Our new vehicle days’ supply of inventory was approximately 20 days for the quarter ended June 30, 2021, as compared to 52 days for the quarter ended December 31, 2020 and 61 days for the quarter ended June 30, 2020. Refer to Item 1A. Risk Factors of this Form 10-Q for additional discussion regarding the impact of the decrease in inventory. Critical Accounting Policies and Accounting Estimates The preparation of our Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions. For additional discussion of our critical accounting policies and accounting estimates, please see Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2020 Form 10-K. Results of Operations The “same store” amounts presented below include the results of dealerships and corporate headquarters 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. For example, the results for a dealership acquired on August 15, 2020 will appear in our same store comparison beginning in 2021 for the period September 2021 through December 2021, when comparing to September 2020 through December 2020 results. If we disposed of a store on August 15, 2020, the results from this store would be excluded from same store results beginning in August 2020 as July 2020 was the last full month the dealership was owned by us. Same store results provide a measurement of our ability to grow revenues and profitability of our existing stores and also provide a metric for peer group comparisons. For these reasons, same store results allows management to manage and monitor the performance of the business and is also useful to investors. 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 USD 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. Additionally, we caution investors not to place undue reliance on non-GAAP measures, but also to consider them with the most directly comparable U.S. GAAP measures. Our management also uses constant currency and adjusted cash flows from operating, investing and financing activities 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. These metrics also allow investors to better understand and evaluate the information used by management to assess operating performance. Certain amounts in the financial statements may not compute due to rounding. All computations have been calculated using unrounded amounts for all periods presented. 24 Table of Contents The following tables summarize our operating results on a reported basis and on a same store basis: Reported Operating Data — Consolidated (In millions, except unit data) Three Months Ended June 30, 2021 2020 Increase/ (Decrease) % Change Currency Impact on Current Period Results Constant Currency % Change Revenues: New vehicle retail sales $ 1,855.3 $ 1,062.7 $ 792.6 74.6 % $ 33.6 71.4 % Used vehicle retail sales 1,195.6 641.2 554.4 86.5 % 32.8 81.3 % Used vehicle wholesale sales 96.4 48.7 47.7 98.0 % 3.6 90.6 % Total used 1,292.0 689.9 602.1 87.3 % 36.5 82.0 % Parts and service sales 392.1 282.0 110.2 39.1 % 5.6 37.1 % F&I, net 161.0 96.7 64.3 66.5 % 1.7 64.7 % Total revenues $ 3,700.4 $ 2,131.2 $ 1,569.2 73.6 % $ 77.4 70.0 % Gross profit: New vehicle retail sales $ 165.3 $ 63.8 $ 101.5 159.2 % $ 2.1 155.9 % Used vehicle retail sales 109.1 46.3 62.8 135.8 % 2.3 130.9 % Used vehicle wholesale sales 9.1 2.0 7.1 NM 0.3 NM Total used 118.2 48.3 69.9 144.7 % 2.5 139.5 % Parts and service sales 216.7 150.0 66.7 44.5 % 3.4 42.2 % F&I, net 161.0 96.7 64.3 66.5 % 1.7 64.7 % Total gross profit $ 661.3 $ 358.8 $ 302.4 84.3 % $ 9.8 81.6 % Gross margin: New vehicle retail sales 8.9 % 6.0 % 2.9 % Used vehicle retail sales 9.1 % 7.2 % 1.9 % Used vehicle wholesale sales 9.5 % 4.2 % 5.3 % Total used 9.2 % 7.0 % 2.1 % Parts and service sales 55.3 % 53.2 % 2.1 % Total gross margin 17.9 % 16.8 % 1.0 % Units sold: Retail new vehicles sold 42,893 26,472 16,421 62.0 % Retail used vehicles sold 45,002 30,528 14,474 47.4 % Wholesale used vehicles sold 10,965 7,303 3,662 50.1 % Total used 55,967 37,831 18,136 47.9 % Average sales price per unit sold: New vehicle retail $ 43,254 $ 40,143 $ 3,111 7.8 % $ 783 5.8 % Used vehicle retail $ 26,568 $ 21,004 $ 5,564 26.5 % $ 729 23.0 % Gross profit per unit sold: New vehicle retail sales $ 3,853 $ 2,409 $ 1,444 59.9 % $ 48 58.0 % Used vehicle retail sales $ 2,425 $ 1,516 $ 909 59.9 % $ 50 56.6 % Used vehicle wholesale sales $ 832 $ 278 $ 554 NM $ 24 NM Total used $ 2,113 $ 1,277 $ 836 65.4 % $ 45 61.9 % F&I PRU $ 1,832 $ 1,697 $ 135 8.0 % $ 20 6.8 % Other: SG&A expenses $ 376.7 $ 237.2 $ 139.5 58.8 % $ 6.3 56.2 % SG&A as % gross profit 57.0 % 66.1 % (9.1) % Floorplan expense: Floorplan interest expense $ 8.8 $ 10.1 $ (1.3) (13.2) % $ 0.2 (14.9) % Less: floorplan assistance (1) 15.3 9.8 5.4 55.5 % — 55.5 % Net floorplan expense $ (6.5) $ 0.3 $ (6.8) $ 0.2 (1) Floorplan assistance is included within New vehicle retail sales Gross profit above and New vehicle retail sales Cost of sales in our Condensed Consolidated Statements of Operations. NM — Not Meaningful 25 Table of Contents Same Store Operating Data — Consolidated (In millions, except unit data) Three Months Ended June 30, 2021 2020 Increase/ (Decrease) % Change Currency Impact on Current Period Results Constant Currency % Change Revenues: New vehicle retail sales $ 1,837.5 $ 1,049.8 $ 787.7 75.0 % $ 33.6 71.8 % Used vehicle retail sales 1,188.2 632.5 555.7 87.9 % 32.8 82.7 % Used vehicle wholesale sales 95.8 48.2 47.6 98.7 % 3.6 91.2 % Total used 1,284.0 680.7 603.3 88.6 % 36.5 83.3 % Parts and service sales 385.5 278.5 107.0 38.4 % 5.3 36.5 % F&I, net 159.9 95.5 64.4 67.4 % 1.7 65.6 % Total revenues $ 3,666.9 $ 2,104.5 $ 1,562.4 74.2 % $ 77.1 70.6 % Gross profit: New vehicle retail sales $ 163.6 $ 63.1 $ 100.6 159.4 % $ 2.1 156.2 % Used vehicle retail sales 107.8 45.8 62.1 135.6 % 2.3 130.7 % Used vehicle wholesale sales 8.9 2.0 6.9 NM 0.3 NM Total used 116.8 47.8 69.0 144.4 % 2.5 139.1 % Parts and service sales 212.9 148.1 64.9 43.8 % 3.2 41.6 % F&I, net 159.9 95.5 64.4 67.4 % 1.7 65.6 % Total gross profit $ 653.3 $ 354.4 $ 298.8 84.3 % $ 9.6 81.6 % Gross margin: New vehicle retail sales 8.9 % 6.0 % 2.9 % Used vehicle retail sales 9.1 % 7.2 % 1.8 % Used vehicle wholesale sales 9.3 % 4.1 % 5.2 % Total used 9.1 % 7.0 % 2.1 % Parts and service sales 55.2 % 53.2 % 2.1 % Total gross margin 17.8 % 16.8 % 1.0 % Units sold: Retail new vehicles sold 42,409 26,116 16,293 62.4 % Retail used vehicles sold 44,659 30,016 14,643 48.8 % Wholesale used vehicles sold 10,846 7,217 3,629 50.3 % Total used 55,505 37,233 18,272 49.1 % Average sales price per unit sold: New vehicle retail $ 43,329 $ 40,199 $ 3,131 7.8 % $ 792 5.8 % Used vehicle retail $ 26,606 $ 21,072 $ 5,534 26.3 % $ 735 22.8 % Gross profit per unit sold: New vehicle retail sales $ 3,858 $ 2,415 $ 1,443 59.8 % $ 49 57.8 % Used vehicle retail sales $ 2,415 $ 1,525 $ 890 58.4 % $ 51 55.0 % Used vehicle wholesale sales $ 823 $ 277 $ 546 NM $ 25 NM Total used $ 2,104 $ 1,283 $ 821 64.0 % $ 46 60.4 % F&I PRU $ 1,837 $ 1,702 $ 135 7.9 % $ 20 6.8 % Other: SG&A expenses $ 372.3 $ 233.2 $ 139.1 59.7 % $ 6.2 57.0 % SG&A as % gross profit 57.0 % 65.8 % (8.8) % NM — Not Meaningful 26 Table of Contents Reported Operating Data - Consolidated (In millions, except unit data) Six Months Ended June 30, 2021 2020 Increase/ (Decrease) % Change Currency Impact on Current Period Results Constant Currency % Change Revenues: New vehicle retail sales $ 3,398.7 $ 2,404.8 $ 993.8 41.3 % $ 39.9 39.7 % Used vehicle retail sales 2,094.4 1,420.3 674.1 47.5 % 38.4 44.8 % Used vehicle wholesale sales 176.6 135.2 41.4 30.7 % 4.5 27.3 % Total used 2,271.0 1,555.4 715.6 46.0 % 42.9 43.2 % Parts and service sales 752.8 652.6 100.2 15.4 % 6.7 14.3 % F&I, net 288.0 209.2 78.8 37.7 % 1.9 36.8 % Total revenues $ 6,710.5 $ 4,822.0 $ 1,888.4 39.2 % $ 91.9 37.3 % Gross profit: New vehicle retail sales $ 264.3 $ 126.6 $ 137.7 108.8 % $ 2.0 107.2 % Used vehicle retail sales 168.7 88.4 80.3 90.8 % 2.2 88.3 % Used vehicle wholesale sales 13.1 3.0 10.0 NM 0.2 NM Total used 181.8 91.5 90.3 98.7 % 2.4 96.1 % Parts and service sales 417.8 348.0 69.8 20.0 % 4.4 18.8 % F&I, net 288.0 209.2 78.8 37.7 % 1.9 36.8 % Total gross profit $ 1,151.9 $ 775.3 $ 376.7 48.6 % $ 10.8 47.2 % Gross margin: New vehicle retail sales 7.8 % 5.3 % 2.5 % Used vehicle retail sales 8.1 % 6.2 % 1.8 % Used vehicle wholesale sales 7.4 % 2.2 % 5.2 % Total used 8.0 % 5.9 % 2.1 % Parts and service sales 55.5 % 53.3 % 2.2 % Total gross margin 17.2 % 16.1 % 1.1 % Units sold: Retail new vehicles sold 79,756 61,832 17,924 29.0 % Retail used vehicles sold 83,061 67,318 15,743 23.4 % Wholesale used vehicles sold 20,777 19,389 1,388 7.2 % Total used 103,838 86,707 17,131 19.8 % Average sales price per unit sold: New vehicle retail $ 42,613 $ 38,893 $ 3,720 9.6 % $ 500 8.3 % Used vehicle retail $ 25,215 $ 21,098 $ 4,117 19.5 % $ 462 17.3 % Gross profit per unit sold: New vehicle retail sales $ 3,314 $ 2,047 $ 1,267 61.9 % $ 25 60.6 % Used vehicle retail sales $ 2,031 $ 1,314 $ 718 54.6 % $ 27 52.6 % Used vehicle wholesale sales $ 628 $ 156 $ 472 NM $ 8 NM Total used $ 1,751 $ 1,055 $ 696 66.0 % $ 23 63.8 % F&I PRU $ 1,769 $ 1,620 $ 149 9.2 % $ 12 8.5 % Other: SG&A expenses $ 695.2 $ 565.1 $ 130.0 23.0 % $ 7.3 21.7 % SG&A as % gross profit 60.3 % 72.9 % (12.5) % Floorplan expense: Floorplan interest expense $ 16.4 $ 23.0 $ (6.6) (28.8) % $ 0.3 (30.0) % Less: floorplan assistance (1) 28.5 20.4 8.1 39.6 % — 39.6 % Net floorplan expense $ (12.1) $ 2.6 $ (14.7) $ 0.3 (1) Floorplan assistance is included within New vehicle retail sales Gross profit above and New vehicle retail sales Cost of sales in our Condensed Consolidated Statements of Operations. NM — Not Meaningful 27 Table of Contents Same Store Operating Data - Consolidated (In millions, except unit data) Six Months Ended June 30, 2021 2020 Increase/ (Decrease) % Change Currency Impact on Current Period Results Constant Currency % Change Revenues: New vehicle retail sales $ 3,380.4 $ 2,381.9 $ 998.6 41.9 % $ 39.8 40.3 % Used vehicle retail sales 2,086.4 1,403.0 683.4 48.7 % 38.3 46.0 % Used vehicle wholesale sales 176.0 133.7 42.2 31.6 % 4.5 28.2 % Total used 2,262.4 1,536.8 725.6 47.2 % 42.8 44.4 % Parts and service sales 743.6 642.6 101.0 15.7 % 6.3 14.7 % F&I, net 286.9 207.0 79.9 38.6 % 1.9 37.7 % Total revenues $ 6,673.3 $ 4,768.3 $ 1,905.0 40.0 % $ 91.4 38.0 % Gross profit: New vehicle retail sales $ 262.7 $ 125.2 $ 137.5 109.8 % $ 2.0 108.2 % Used vehicle retail sales 167.4 87.7 79.8 91.0 % 2.2 88.5 % Used vehicle wholesale sales 12.9 3.0 9.9 NM 0.2 NM Total used 180.4 90.7 89.7 98.9 % 2.4 96.3 % Parts and service sales 412.9 342.8 70.1 20.5 % 4.2 19.2 % F&I, net 286.9 207.0 79.9 38.6 % 1.9 37.7 % Total gross profit $ 1,142.9 $ 765.7 $ 377.2 49.3 % $ 10.6 47.9 % Gross margin: New vehicle retail sales 7.8 % 5.3 % 2.5 % Used vehicle retail sales 8.0 % 6.2 % 1.8 % Used vehicle wholesale sales 7.3 % 2.3 % 5.1 % Total used 8.0 % 5.9 % 2.1 % Parts and service sales 55.5 % 53.3 % 2.2 % Total gross margin 17.1 % 16.1 % 1.1 % Units sold: Retail new vehicles sold 79,260 61,198 18,062 29.5 % Retail used vehicles sold 82,686 66,347 16,339 24.6 % Wholesale used vehicles sold 20,645 19,138 1,507 7.9 % Total used 103,331 85,485 17,846 20.9 % Average sales price per unit sold: New vehicle retail $ 42,650 $ 38,921 $ 3,729 9.6 % $ 503 8.3 % Used vehicle retail $ 25,233 $ 21,147 $ 4,086 19.3 % $ 463 17.1 % Gross profit per unit sold: New vehicle retail sales $ 3,315 $ 2,046 $ 1,268 62.0 % $ 25 60.7 % Used vehicle retail sales $ 2,025 $ 1,321 $ 704 53.3 % $ 27 51.2 % Used vehicle wholesale sales $ 626 $ 157 $ 469 NM $ 8 NM Total used $ 1,745 $ 1,061 $ 685 64.6 % $ 23 62.4 % F&I PRU $ 1,772 $ 1,623 $ 149 9.2 % $ 12 8.4 % Other: SG&A expenses $ 689.6 $ 555.5 $ 134.2 24.2 % $ 7.1 22.9 % SG&A as % gross profit 60.3 % 72.5 % (12.2) % NM — Not Meaningful 28 Table of Contents Reported Operating Data — U.S. (In millions, except unit data) Three Months Ended June 30, 2021 2020 Increase/(Decrease) % Change Revenues: New vehicle retail sales $ 1,504.4 $ 915.7 $ 588.7 64.3 % Used vehicle retail sales 882.9 540.9 342.0 63.2 % Used vehicle wholesale sales 61.2 30.5 30.7 100.5 % Total used 944.1 571.4 372.7 65.2 % Parts and service sales 332.6 254.2 78.4 30.8 % F&I, net 143.9 89.8 54.1 60.3 % Total revenues $ 2,924.9 $ 1,831.1 $ 1,093.8 59.7 % Gross profit: New vehicle retail sales $ 141.7 $ 56.5 $ 85.2 150.7 % Used vehicle retail sales 87.3 41.0 46.4 113.2 % Used vehicle wholesale sales 6.4 1.6 4.8 NM Total used 93.7 42.6 51.2 120.2 % Parts and service sales 181.7 135.6 46.1 34.0 % F&I, net 143.9 89.8 54.1 60.3 % Total gross profit $ 561.1 $ 324.5 $ 236.6 72.9 % Gross margin: New vehicle retail sales 9.4 % 6.2 % 3.2 % Used vehicle retail sales 9.9 % 7.6 % 2.3 % Used vehicle wholesale sales 10.5 % 5.2 % 5.2 % Total used 9.9 % 7.4 % 2.5 % Parts and service sales 54.6 % 53.3 % 1.3 % Total gross margin 19.2 % 17.7 % 1.5 % Units sold: Retail new vehicles sold 34,047 21,937 12,110 55.2 % Retail used vehicles sold 34,008 26,132 7,876 30.1 % Wholesale used vehicles sold 6,606 5,150 1,456 28.3 % Total used 40,614 31,282 9,332 29.8 % Average sales price per unit sold: New vehicle retail $ 44,185 $ 41,742 $ 2,443 5.9 % Used vehicle retail $ 25,962 $ 20,699 $ 5,263 25.4 % Gross profit per unit sold: New vehicle retail sales $ 4,162 $ 2,576 $ 1,586 61.6 % Used vehicle retail sales $ 2,568 $ 1,568 $ 1,000 63.8 % Used vehicle wholesale sales $ 969 $ 311 $ 658 NM Total used $ 2,308 $ 1,361 $ 947 69.6 % F&I PRU $ 2,114 $ 1,868 $ 247 13.2 % Other: SG&A expenses $ 312.6 $ 203.3 $ 109.3 53.8 % SG&A as % gross profit 55.7 % 62.6 % (6.9) % NM — Not Meaningful 29 Table of Contents Same Store Operating Data — U.S. (In millions, except unit data) Three Months Ended June 30, 2021 2020 Increase/(Decrease) % Change Revenues: New vehicle retail sales $ 1,486.6 $ 903.9 $ 582.7 64.5 % Used vehicle retail sales 875.5 533.2 342.2 64.2 % Used vehicle wholesale sales 60.6 30.1 30.5 101.2 % Total used 936.1 563.4 372.7 66.2 % Parts and service sales 329.3 251.2 78.1 31.1 % F&I, net 142.8 88.7 54.1 61.0 % Total revenues $ 2,894.8 $ 1,807.1 $ 1,087.7 60.2 % Gross profit: New vehicle retail sales $ 140.1 $ 55.9 $ 84.2 150.7 % Used vehicle retail sales 86.0 40.5 45.5 112.3 % Used vehicle wholesale sales 6.2 1.6 4.6 NM Total used 92.2 42.1 50.2 119.1 % Parts and service sales 179.6 133.9 45.8 34.2 % F&I, net 142.8 88.7 54.1 61.0 % Total gross profit $ 554.8 $ 320.5 $ 234.3 73.1 % Gross margin: New vehicle retail sales 9.4 % 6.2 % 3.2 % Used vehicle retail sales 9.8 % 7.6 % 2.2 % Used vehicle wholesale sales 10.2 % 5.2 % 5.0 % Total used 9.9 % 7.5 % 2.4 % Parts and service sales 54.6 % 53.3 % 1.3 % Total gross margin 19.2 % 17.7 % 1.4 % Units sold: Retail new vehicles sold 33,563 21,631 11,932 55.2 % Retail used vehicles sold 33,665 25,691 7,974 31.0 % Wholesale used vehicles sold 6,487 5,084 1,403 27.6 % Total used 40,152 30,775 9,377 30.5 % Average sales price per unit sold: New vehicle retail $ 44,292 $ 41,786 $ 2,506 6.0 % Used vehicle retail $ 26,005 $ 20,756 $ 5,249 25.3 % Gross profit per unit sold: New vehicle retail sales $ 4,173 $ 2,583 $ 1,591 61.6 % Used vehicle retail sales $ 2,556 $ 1,577 $ 978 62.0 % Used vehicle wholesale sales $ 956 $ 309 $ 648 NM Total used $ 2,297 $ 1,368 $ 930 68.0 % F&I PRU $ 2,125 $ 1,874 $ 250 13.4 % Other: SG&A expenses $ 309.4 $ 200.2 $ 109.2 54.6 % SG&A as % gross profit 55.8 % 62.5 % (6.7) % NM — Not Meaningful 30 Table of Contents The following discussion of our U.S. operating results is on actual and same store basis. The difference between reported amounts and same store amounts is related to acquisition and disposition activity, as well as new add-point openings. During 2020, our U.S. dealership operations were impacted by reduced demand caused by the COVID-19 pandemic and the restrictions put in place by local governments to contain the virus. Revenues Total revenues in the U.S. during the three months ended June 30, 2021 increased $1,093.8 million, or 59.7%, as compared to the same period in 2020. Total same store revenues in the U.S. during the three months ended June 30, 2021 increased $1,087.7 million, or 60.2%, driven by increases in all of our revenue streams. The increases were the result of a robust recovery during the second quarter of 2021, as consumer demand was extremely strong. During the second quarter of 2020, the COVID-19 pandemic had dampened sales activity as a result of the social distancing restrictions. Gross Profit Total gross profit in the U.S. during the three months ended June 30, 2021 increased $236.6 million, or 72.9%, as compared to the same period in 2020. Total same store gross profit in the U.S. during the three months ended June 30, 2021 increased $234.3 million, or 73.1%, as compared to the same period in 2020, driven by increases in all of our operations. New vehicle retail same store gross profit increased 150.7% reflecting a 61.6% increase in new vehicle same store gross profit per unit sold, coupled with a 55.2% increase in new vehicle retail same store unit sales. The increase in new vehicle retail same store gross profit per unit sold reflects strong consumer demand coupled with inventory supply constraints as a result of the OEMs producing and delivering fewer vehicles to dealerships due to a global semiconductor chip shortage. Our U.S. new vehicle inventory stood at a 16 days’ supply, which was 48 days lower than the same period last year and 32 days lower than December 31, 2020 days’ supply of 48. Used vehicle retail same store gross profit increased 112.3% reflecting an increase of 62.0% in used vehicle retail same store gross profit per unit sold, coupled with a 31.0% increase in used vehicle retail same store unit sales over the same period in 2020. The increase in used vehicle retail same store gross profit per unit sold reflects higher market prices stemming from tight inventory levels combined with a strong demand. Used vehicle wholesale gross profit increased as industry supply shortages drove up auction prices as reflected in the Manheim Index, a generally accepted indicator of pricing trends in the used vehicle market. Parts and service same store gross profit increased by 34.2% for the quarter ended June 30, 2021 as compared to the same period in 2020, driven primarily by a 32.4% increase in our customer-pay business. F&I same store gross profit increased 61.0% driven by increases in same store retail unit sales volumes coupled with higher income per contract and penetration rates on most of our finance and insurance product offerings partially offset by an increase in our overall chargeback experience compared to the same period in 2020. Total same store gross margin increased 140 basis points driven by higher vehicle and parts and service margins reflecting vehicle supply constraints, improvements in customer pay and increased internal work as a result of higher new and used sales volumes. SG&A Expenses Our SG&A expenses consist primarily of personnel costs, including salaries, commissions and incentive-based compensation, as well as rent and facility costs, advertising and other expenses (which includes legal, professional fees and general corporate expenses). Total SG&A expenses in the U.S. during the three months ended June 30, 2021 increased $109.3 million, or 53.8%, as compared to the same period in 2020. Total same store SG&A expenses in the U.S. during the three months ended June 30, 2021 increased $109.2 million, or 54.6%, as compared to the same period in 2020 primarily driven by increased variable commission payments as a result of improvements in sales volume and margins and an increase in other variable expenses associated with the rise in business activity. Total same store SG&A expenses in the U.S. during the second quarter of 2020 included $10.6 million in expense for an out of period adjustment related to stock compensation. Total same store SG&A as a percent of gross profit decreased from 62.5% in the second quarter of 2020 to 55.8% for the same period of 2021, driven by productivity gains and higher vehicle margins. 31 Table of Contents Reported Operating Data - U.S. (In millions, except unit data) Six Months Ended June 30, 2021 2020 Increase/(Decrease) % Change Revenues: New vehicle retail sales $ 2,750.4 $ 1,904.1 $ 846.3 44.4 % Used vehicle retail sales 1,579.4 1,111.2 468.2 42.1 % Used vehicle wholesale sales 111.6 77.3 34.2 44.3 % Total used 1,691.0 1,188.6 502.4 42.3 % Parts and service sales 628.9 558.9 70.0 12.5 % F&I, net 259.0 187.2 71.8 38.3 % Total revenues $ 5,329.3 $ 3,838.7 $ 1,490.6 38.8 % Gross profit: New vehicle retail sales $ 222.6 $ 103.8 $ 118.8 114.5 % Used vehicle retail sales 137.6 72.9 64.7 88.8 % Used vehicle wholesale sales 10.3 2.4 7.9 NM Total used 148.0 75.3 72.6 96.4 % Parts and service sales 346.8 299.1 47.7 16.0 % F&I, net 259.0 187.2 71.8 38.3 % Total gross profit $ 976.3 $ 665.4 $ 310.9 46.7 % Gross margin: New vehicle retail sales 8.1 % 5.5 % 2.6 % Used vehicle retail sales 8.7 % 6.6 % 2.2 % Used vehicle wholesale sales 9.3 % 3.1 % 6.1 % Total used 8.8 % 6.3 % 2.4 % Parts and service sales 55.1 % 53.5 % 1.6 % Total gross margin 18.3 % 17.3 % 1.0 % Units sold: Retail new vehicles sold 63,199 46,432 16,767 36.1 % Retail used vehicles sold 64,439 53,800 10,639 19.8 % Wholesale used vehicles sold 13,046 12,177 869 7.1 % Total used 77,485 65,977 11,508 17.4 % Average sales price per unit sold: New vehicle retail $ 43,520 $ 41,008 $ 2,512 6.1 % Used vehicle retail $ 24,510 $ 20,655 $ 3,855 18.7 % Gross profit per unit sold: New vehicle retail sales $ 3,522 $ 2,235 $ 1,287 57.6 % Used vehicle retail sales $ 2,136 $ 1,355 $ 781 57.6 % Used vehicle wholesale sales $ 792 $ 199 $ 592 NM Total used $ 1,910 $ 1,142 $ 768 67.3 % F&I PRU $ 2,029 $ 1,868 $ 161 8.6 % Other: SG&A expenses $ 574.3 $ 460.8 $ 113.5 24.6 % SG&A as % gross profit 58.8 % 69.2 % (10.4) % NM — Not Meaningful 32 Table of Contents Same Store Operating Data - U.S. (In millions, except unit data) Six Months Ended June 30, 2021 2020 Increase/(Decrease) % Change Revenues: New vehicle retail sales $ 2,732.3 $ 1,883.2 $ 849.1 45.1 % Used vehicle retail sales 1,571.9 1,096.1 475.8 43.4 % Used vehicle wholesale sales 111.0 76.0 35.0 46.0 % Total used 1,682.9 1,172.1 510.8 43.6 % Parts and service sales 624.8 553.1 71.7 13.0 % F&I, net 257.9 185.2 72.6 39.2 % Total revenues $ 5,297.9 $ 3,793.6 $ 1,504.3 39.7 % Gross profit: New vehicle retail sales $ 221.0 $ 102.5 $ 118.5 115.6 % Used vehicle retail sales 136.4 72.3 64.1 88.7 % Used vehicle wholesale sales 10.1 2.4 7.7 NM Total used 146.5 74.7 71.8 96.2 % Parts and service sales 344.3 295.6 48.7 16.5 % F&I, net 257.9 185.2 72.6 39.2 % Total gross profit $ 969.7 $ 658.1 $ 311.6 47.4 % Gross margin: New vehicle retail sales 8.1 % 5.4 % 2.6 % Used vehicle retail sales 8.7 % 6.6 % 2.1 % Used vehicle wholesale sales 9.1 % 3.2 % 6.0 % Total used 8.7 % 6.4 % 2.3 % Parts and service sales 55.1 % 53.5 % 1.7 % Total gross margin 18.3 % 17.3 % 1.0 % Units sold: Retail new vehicles sold 62,711 45,902 16,809 36.6 % Retail used vehicles sold 64,090 52,971 11,119 21.0 % Wholesale used vehicles sold 12,927 11,981 946 7.9 % Total used 77,017 64,952 12,065 18.6 % Average sales price per unit sold: New vehicle retail $ 43,570 $ 41,026 $ 2,544 6.2 % Used vehicle retail $ 24,526 $ 20,692 $ 3,835 18.5 % Gross profit per unit sold: New vehicle retail sales $ 3,524 $ 2,234 $ 1,291 57.8 % Used vehicle retail sales $ 2,128 $ 1,364 $ 764 56.0 % Used vehicle wholesale sales $ 785 $ 201 $ 583 NM Total used $ 1,903 $ 1,150 $ 753 65.5 % F&I PRU $ 2,034 $ 1,874 $ 160 8.6 % Other: SG&A expenses $ 571.5 $ 454.1 $ 117.3 25.8 % SG&A as % gross profit 58.9 % 69.0 % (10.1) % NM — Not Meaningful 33 Table of Contents The following discussion of our U.S. operating results is on actual and same store basis. The difference between reported amounts and same store amounts is related to acquisition and disposition activity, as well as new add-point openings. During 2020, our U.S. dealership operations were impacted by reduced demand caused by the COVID-19 pandemic and the restrictions put in place by local governments to contain the virus. Revenues Total revenues in the U.S. during the six months ended June 30, 2021 increased $1,490.6 million, or 38.8%, as compared to the same period in 2020. Total same store revenues in the U.S. during the six months ended June 30, 2021 increased $1,504.3 million, or 39.7%, as compared to the same period in 2020 driven by increases in all of our revenue streams. The increases were the result of a robust recovery during the year as consumer demand was extremely strong. During the same period in 2020, the COVID-19 pandemic had dampened sales activity as a result of the social distancing restrictions. Gross Profit Total gross profit in the U.S. during the six months ended June 30, 2021 increased $310.9 million, or 46.7%, as compared to the same period in 2020. Total same store gross profit in the U.S. during the six months ended June 30, 2021 increased $311.6 million, or 47.4%, as compared to the same period in 2020 driven by increases in all of our operations. New vehicle retail same store gross profit increased 115.6% driven by a 57.8% increase in new vehicle retail same store gross profit per unit sold, coupled with a 36.6% increase in new vehicle retail unit sales. The increase in new vehicle retail same store gross profit per unit sold reflects higher demand and inventory supply constraints as a result of the global semiconductor chip shortage. Used vehicle retail same store gross profit increased 88.7% driven by a 56.0% increase in used vehicle retail same store gross profit per unit sold, coupled with a 21.0% increase in used vehicle retail unit sales. The increase in used vehicle retail same store gross profit per unit sold reflects inventory constraints and the resulting increase in market prices. Used vehicle wholesale same store gross profit increased as industry supply shortages drove up auction prices as reflected in the Manheim Index. Parts and service same store gross profit increased 16.5% primarily driven by the increase in our customer-pay business reflecting increased business activity. F&I same store gross profit increased 39.2% driven by increases in same store retail unit sales volumes, higher income per contract and improved penetration rates on most of our finance and insurance product offerings, partially offset by an increase in our overall chargeback experience. Total same store gross margin increased 100 basis points driven by higher vehicle and parts and service margins reflecting vehicle supply constraints, improvements in customer pay and an increase in internal work associated with higher vehicle sales volumes. SG&A Expenses Our SG&A expenses consist primarily of personnel costs, including salaries, commissions and incentive-based compensation, as well as rent and facility costs, advertising and other expenses (which includes legal, professional fees and general corporate expenses). Total SG&A expenses in the U.S. during the six months ended June 30, 2021 increased $113.5 million, or 24.6%, as compared to the same period in 2020. Total same store SG&A expenses in the U.S. during the six months ended June 30, 2021, increased $117.3 million, or 25.8%, as compared to the same period in 2020, primarily driven by increased variable commission payments as a result of improvements in sales volume and margins and an increase in other variable expenses associated with the rise in business activity. Total same store SG&A expenses in the U.S. in the first six months of 2021 included $2.2 million in disaster pay and insurance deductible expense associated with the February winter storm in Texas and a $1.0 million gain related to a non-core legal settlement. Total same store SG&A expenses in the U.S. in the first six months of 2020 included $10.6 million in expense for an out of period adjustment related to stock compensation. Total same store SG&A as a percent of gross profit decreased from 69.0% for the six months ended 2020 to 58.9% for the same period of 2021 driven by productivity gains and higher vehicle margins. 34 Table of Contents Reported Operating Data — U.K. (In millions, except unit data) Three Months Ended June 30, 2021 2020 Increase/ (Decrease) % Change Currency Impact on Current Period Results Constant Currency % Change Revenues: New vehicle retail sales $ 301.2 $ 127.2 $ 174.0 136.8 % $ 32.9 110.9 % Used vehicle retail sales 300.9 92.8 208.1 224.1 % 32.7 188.9 % Used vehicle wholesale sales 32.5 15.3 17.3 113.2 % 3.6 89.9 % Total used 333.4 108.1 225.3 208.5 % 36.3 174.9 % Parts and service sales 50.3 21.8 28.5 130.5 % 5.5 105.4 % F&I, net 15.7 6.4 9.4 147.1 % 1.7 120.3 % Total revenues $ 700.7 $ 263.5 $ 437.2 165.9 % $ 76.4 136.9 % Gross profit: New vehicle retail sales $ 18.4 $ 5.9 $ 12.5 213.2 % $ 2.0 179.0 % Used vehicle retail sales 20.8 4.9 15.9 326.2 % 2.3 280.1 % Used vehicle wholesale sales 2.5 0.4 2.2 NM 0.3 NM Total used 23.3 5.2 18.1 345.7 % 2.5 297.7 % Parts and service sales 31.0 11.9 19.0 159.2 % 3.4 131.1 % F&I, net 15.7 6.4 9.4 147.1 % 1.7 120.3 % Total gross profit $ 88.4 $ 29.4 $ 59.0 200.6 % $ 9.6 167.9 % Gross margin: New vehicle retail sales 6.1 % 4.6 % 1.5 % Used vehicle retail sales 6.9 % 5.3 % 1.7 % Used vehicle wholesale sales 7.7 % 2.3 % 5.4 % Total used 7.0 % 4.8 % 2.2 % Parts and service sales 61.5 % 54.7 % 6.8 % Total gross margin 12.6 % 11.2 % 1.5 % Units sold: Retail new vehicles sold 7,395 3,841 3,554 92.5 % Retail used vehicles sold 10,494 4,040 6,454 159.8 % Wholesale used vehicles sold 4,124 1,829 2,295 125.5 % Total used 14,618 5,869 8,749 149.1 % Average sales price per unit sold: New vehicle retail $ 40,727 $ 33,119 $ 7,608 23.0 % $ 4,455 9.5 % Used vehicle retail $ 28,672 $ 22,978 $ 5,694 24.8 % $ 3,114 11.2 % Gross profit per unit sold: New vehicle retail sales $ 2,484 $ 1,527 $ 957 62.7 % $ 271 44.9 % Used vehicle retail sales $ 1,984 $ 1,209 $ 775 64.1 % $ 215 46.3 % Used vehicle wholesale sales $ 611 $ 192 $ 419 NM $ 64 NM Total used $ 1,597 $ 892 $ 705 79.0 % $ 172 59.7 % F&I PRU $ 879 $ 808 $ 72 8.9 % $ 95 (2.9) % Other: SG&A expenses $ 56.0 $ 28.3 $ 27.7 98.0 % $ 6.2 76.0 % SG&A as % gross profit 63.4 % 96.2 % (32.8) % NM — Not Meaningful 35 Table of Contents Same Store Operating Data — U.K. (In millions, except unit data) Three Months Ended June 30, 2021 2020 Increase/ (Decrease) % Change Currency Impact on Current Period Results Constant Currency % Change Revenues: New vehicle retail sales $ 301.2 $ 126.2 $ 175.0 138.7 % $ 32.9 112.6 % Used vehicle retail sales 300.9 91.8 209.1 227.7 % 32.7 192.1 % Used vehicle wholesale sales 32.5 15.2 17.3 113.9 % 3.6 90.5 % Total used 333.4 107.0 226.4 211.6 % 36.3 177.7 % Parts and service sales 47.0 21.4 25.6 119.7 % 5.1 95.8 % F&I, net 15.7 6.3 9.5 151.1 % 1.7 123.9 % Total revenues $ 697.3 $ 260.9 $ 436.5 167.3 % $ 76.0 138.2 % Gross profit: New vehicle retail sales $ 18.4 $ 5.8 $ 12.6 215.9 % $ 2.0 181.4 % Used vehicle retail sales 20.8 4.8 16.0 331.9 % 2.3 285.1 % Used vehicle wholesale sales 2.5 0.3 2.2 NM 0.3 NM Total used 23.3 5.2 18.2 351.5 % 2.5 302.9 % Parts and service sales 29.2 11.7 17.5 149.3 % 3.2 122.2 % F&I, net 15.7 6.3 9.5 151.1 % 1.7 123.9 % Total gross profit $ 86.7 $ 29.0 $ 57.7 199.1 % $ 9.4 166.6 % Gross margin: New vehicle retail sales 6.1 % 4.6 % 1.5 % Used vehicle retail sales 6.9 % 5.3 % 1.7 % Used vehicle wholesale sales 7.7 % 2.3 % 5.5 % Total used 7.0 % 4.8 % 2.2 % Parts and service sales 62.2 % 54.8 % 7.4 % Total gross margin 12.4 % 11.1 % 1.3 % Units sold: Retail new vehicles sold 7,395 3,791 3,604 95.1 % Retail used vehicles sold 10,494 3,969 6,525 164.4 % Wholesale used vehicles sold 4,124 1,809 2,315 128.0 % Total used 14,618 5,778 8,840 153.0 % Average sales price per unit sold: New vehicle retail $ 40,727 $ 33,284 $ 7,443 22.4 % $ 4,455 9.0 % Used vehicle retail $ 28,672 $ 23,131 $ 5,541 24.0 % $ 3,114 10.5 % Gross profit per unit sold: New vehicle retail sales $ 2,484 $ 1,533 $ 950 62.0 % $ 271 44.3 % Used vehicle retail sales $ 1,984 $ 1,215 $ 770 63.3 % $ 215 45.7 % Used vehicle wholesale sales $ 611 $ 192 $ 419 NM $ 64 NM Total used $ 1,597 $ 895 $ 702 78.5 % $ 172 59.2 % F&I PRU $ 879 $ 807 $ 72 8.9 % $ 95 (2.9) % Other: SG&A expenses $ 54.9 $ 27.3 $ 27.5 100.7 % $ 6.1 78.4 % SG&A as % gross profit 63.3 % 94.4 % (31.1) % NM — Not Meaningful 36 Table of Contents The following discussion of our U.K. operating results is on actual and same store basis. The difference between reported amounts and same store amounts is related to acquisition and disposition activity, as well as new add-point openings. At the end of 2020, the U.K. experienced a surge in COVID-19 cases, which led to a government-mandated closure of all non-essential businesses beginning January 4, 2021 through April 12, 2021. In mid-April 2021, the COVID-19 restrictions affecting our U.K. dealership showrooms were lifted, and our dealerships were able to reopen. In the prior year, beginning March 21, 2020, the government mandated the closure of all U.K. dealerships in efforts to stop the spread of the virus and the government shutdown remained in effect through May 18, 2020 for service, with the exception of emergency vehicle repairs. U.K. showrooms were allowed to reopen June 1, 2020. Revenues Total revenues in the U.K. during the three months ended June 30, 2021 increased $437.2 million, or 165.9%, as compared to the same period in 2020. Total same store revenues in the U.K. during the three months ended June 30, 2021 increased $436.5 million, or 167.3%, as compared to the same period in 2020. On a constant currency basis, total same store revenues increased 138.2% driven by increases in all of our revenue streams. These increases were largely the result of COVID-19 lockdown restrictions being lifted in mid-April, allowing our dealership showrooms to reopen and increased consumer demand, which was pent-up over the past several years due to both Brexit and the COVID-19 pandemic. Gross Profit Total gross profit in the U.K. during the three months ended June 30, 2021 increased $59.0 million, or 200.6%, as compared to the same period in 2020. Total same store gross profit in the U.K. during the three months ended June 30, 2021 increased $57.7 million, or 199.1%, as compared to the same period in 2020. On a constant currency basis, total same store gross profit increased 166.6%, driven by improvements in all of our operations. New vehicle retail same store gross profit increased 181.4% on a constant currency basis, driven by a 44.3% increase in new vehicle retail same store gross profit per unit, coupled with a 95.1% increase in new vehicle retail same store unit sales. The increase in new vehicle gross profit per unit primarily reflects both higher demand and supply constraints as OEMs are producing fewer vehicles due to the global semiconductor chip shortage. At June 30, 2021, our U.K. new vehicle inventory stood at a 31 days’ supply, which was 18 days lower than the same period last year and 71 days lower than December 31, 2020 days’ supply of 102. On a constant currency basis, used vehicle retail same store gross profit improved 285.1%, reflecting a 164.4% increase in used vehicle retail same store unit sales, coupled with a 45.7% increase in used vehicle retail same store gross profit per unit sold. The increase in used vehicle retail same store gross profit per unit sold was driven by increased consumer demand and new vehicle inventory shortages. Parts and service same store gross profit on a constant currency basis increased 122.2%, as all parts and service businesses increased with the easing of COVID-19 restrictions in mid-April. F&I same store gross profit on a constant currency basis increased 123.9% as an increase in retail unit sales volumes coupled with higher penetration rates were partially offset by lower income per contract on VSC and other product offerings and a higher overall chargeback experience. Total same store gross margin in the U.K. increased 130 basis points driven by improved parts and service margins, reflecting higher internal work as a result of increased new and used sales volumes, and higher new and used vehicle margins because of higher demand and vehicle supply constraints. SG&A Expenses Our SG&A expenses consist primarily of personnel costs, including salaries, commissions and incentive-based compensation, as well as rent and facility costs, advertising and other expenses (which includes legal, professional fees and general corporate expenses). Total SG&A expenses in the U.K. during the three months ended June 30, 2021 increased $27.7 million, or 98.0%, as compared to the same period in 2020. Total same store SG&A expenses in the U.K. during the three months ended June 30, 2021, increased $27.5 million, or 100.7%, as compared to the same period in 2020. On a constant currency basis, total same store SG&A expenses increased 78.4%, driven by increased variable commission payments as a result of increased sales and margins during the second quarter of 2021 as compared to last year. We have continued to focus on cost discipline throughout the second quarter of 2021. As a percentage of gross profit, total same store SG&A expenses decreased from 94.4% for the second quarter of 2020 to 63.3% for the same period of 2021 driven by productivity gains and higher vehicle margins realized during the second quarter of 2021 as compared to last year. Total same store SG&A expenses in the second quarter of 2020 included $1.2 million in severance costs for redundancy driven by the COVID-19 pandemic. 37 Table of Contents Reported Operating Data - U.K. (In millions, except unit data) Six Months Ended June 30, 2021 2020 Increase/ (Decrease) % Change Currency Impact on Current Period Results Constant Currency % Change Revenues: New vehicle retail sales $ 564.3 $ 423.5 $ 140.8 33.3 % $ 52.3 20.9 % Used vehicle retail sales 492.5 281.6 210.9 74.9 % 41.7 60.1 % Used vehicle wholesale sales 60.4 51.1 9.3 18.1 % 5.0 8.3 % Total used 552.8 332.7 220.1 66.2 % 46.7 52.1 % Parts and service sales 106.8 78.3 28.5 36.5 % 8.8 25.2 % F&I, net 26.3 19.7 6.6 33.6 % 2.4 21.5 % Total revenues $ 1,250.3 $ 854.2 $ 396.1 46.4 % $ 110.7 33.4 % Gross profit: New vehicle retail sales $ 33.2 $ 17.9 $ 15.2 85.0 % $ 3.2 66.9 % Used vehicle retail sales 29.0 14.0 15.0 106.5 % 2.6 88.3 % Used vehicle wholesale sales 2.4 0.3 2.0 NM 0.2 NM Total used 31.4 14.4 17.0 118.3 % 2.8 99.0 % Parts and service sales 63.6 42.3 21.3 50.5 % 5.3 37.9 % F&I, net 26.3 19.7 6.6 33.6 % 2.4 21.5 % Total gross profit $ 154.4 $ 94.2 $ 60.2 63.8 % $ 13.7 49.3 % Gross margin: New vehicle retail sales 5.9 % 4.2 % 1.6 % Used vehicle retail sales 5.9 % 5.0 % 0.9 % Used vehicle wholesale sales 3.9 % 0.6 % 3.3 % Total used 5.7 % 4.3 % 1.4 % Parts and service sales 59.5 % 54.0 % 5.5 % Total gross margin 12.3 % 11.0 % 1.3 % Units sold: Retail new vehicles sold 13,935 12,735 1,200 9.4 % Retail used vehicles sold 17,606 12,064 5,542 45.9 % Wholesale used vehicles sold 7,262 6,413 849 13.2 % Total used 24,868 18,477 6,391 34.6 % Average sales price per unit sold: New vehicle retail $ 40,498 $ 33,255 $ 7,243 21.8 % $ 3,750 10.5 % Used vehicle retail $ 27,973 $ 23,344 $ 4,629 19.8 % $ 2,371 9.7 % Gross profit per unit sold: New vehicle retail sales $ 2,379 $ 1,407 $ 972 69.1 % $ 233 52.5 % Used vehicle retail sales $ 1,647 $ 1,164 $ 483 41.5 % $ 145 29.0 % Used vehicle wholesale sales $ 325 $ 50 $ 275 NM $ 30 NM Total used $ 1,261 $ 777 $ 483 62.2 % $ 111 47.9 % F&I PRU $ 834 $ 794 $ 40 5.0 % $ 75 (4.5) % Other: SG&A expenses $ 105.7 $ 88.2 $ 17.5 19.9 % $ 9.2 9.5 % SG&A as % gross profit 68.4 % 93.5 % (25.1) % NM — Not Meaningful 38 Table of Contents Same Store Operating Data - U.K. (In millions, except unit data) Six Months Ended June 30, 2021 2020 Increase/ (Decrease) % Change Currency Impact on Current Period Results Constant Currency % Change Revenues: New vehicle retail sales $ 564.2 $ 421.4 $ 142.8 33.9 % $ 52.2 21.5 % Used vehicle retail sales 492.0 279.6 212.4 76.0 % 41.7 61.1 % Used vehicle wholesale sales 60.3 51.0 9.3 18.3 % 5.0 8.5 % Total used 552.3 330.6 221.7 67.1 % 46.7 53.0 % Parts and service sales 101.8 74.1 27.7 37.3 % 8.4 25.9 % F&I, net 26.3 19.5 6.8 35.0 % 2.4 22.8 % Total revenues $ 1,244.5 $ 845.5 $ 399.0 47.2 % $ 110.2 34.2 % Gross profit: New vehicle retail sales $ 33.1 $ 17.8 $ 15.3 86.1 % $ 3.2 67.9 % Used vehicle retail sales 29.0 13.9 15.1 108.3 % 2.5 90.0 % Used vehicle wholesale sales 2.4 0.3 2.1 NM 0.2 NM Total used 31.4 14.2 17.2 120.7 % 2.8 101.2 % Parts and service sales 61.2 40.5 20.7 51.2 % 5.1 38.6 % F&I, net 26.3 19.5 6.8 35.0 % 2.4 22.8 % Total gross profit $ 152.0 $ 92.0 $ 60.0 65.3 % $ 13.5 50.6 % Gross margin: New vehicle retail sales 5.9 % 4.2 % 1.6 % Used vehicle retail sales 5.9 % 5.0 % 0.9 % Used vehicle wholesale sales 4.0 % 0.6 % 3.4 % Total used 5.7 % 4.3 % 1.4 % Parts and service sales 60.2 % 54.6 % 5.5 % Total gross margin 12.2 % 10.9 % 1.3 % Units sold: Retail new vehicles sold 13,927 12,631 1,296 10.3 % Retail used vehicles sold 17,580 11,922 5,658 47.5 % Wholesale used vehicles sold 7,249 6,358 891 14.0 % Total used 24,829 18,280 6,549 35.8 % Average sales price per unit sold: New vehicle retail $ 40,509 $ 33,363 $ 7,146 21.4 % $ 3,750 10.2 % Used vehicle retail $ 27,988 $ 23,452 $ 4,536 19.3 % $ 2,370 9.2 % Gross profit per unit sold: New vehicle retail sales $ 2,379 $ 1,409 $ 969 68.8 % $ 232 52.3 % Used vehicle retail sales $ 1,648 $ 1,167 $ 481 41.3 % $ 145 28.8 % Used vehicle wholesale sales $ 333 $ 49 $ 284 NM $ 31 NM Total used $ 1,264 $ 778 $ 486 62.5 % $ 112 48.1 % F&I PRU $ 834 $ 793 $ 41 5.2 % $ 75 (4.3) % Other: SG&A expenses $ 103.1 $ 85.1 $ 17.9 21.0 % $ 9.0 10.5 % SG&A as % gross profit 67.8 % 92.6 % (24.8) % NM — Not Meaningful 39 Table of Contents The following discussion of our U.K. operating results is on actual and same store basis. The difference between reported amounts and same store amounts is related to acquisition and disposition activity, as well as new add-point openings. At the end of 2020, the U.K. experienced a surge in COVID-19 cases, which led to a government-mandated closure of all non-essential businesses beginning January 4, 2021 through April 12, 2021. The COVID-19 restrictions affecting our U.K. dealership showrooms were lifted in mid-April, resulting in increased business activity during the second quarter of 2021. In the prior year, beginning March 21, 2020, the government mandated the closure of all U.K. dealerships in efforts to stop the spread of the virus and the government shutdown remained in effect through May 18, 2020 for service, with the exception of emergency vehicle repairs. U.K. showrooms were allowed to reopen June 1, 2020. Revenues Total revenues in the U.K. during the six months ended June 30, 2021 increased $396.1 million, or 46.4%, as compared to the same period in 2020. Total same store revenues in the U.K. during the six months ended June 30, 2021 increased $399.0 million, or 47.2%, as compared to the same period in 2020. On a constant currency basis, total same store revenues increased 34.2%, driven by increases in all of our revenue streams. These increases were largely the result of COVID-19 lockdown restrictions being lifted in mid-April, allowing our dealership showrooms to reopen and increased consumer demand, which was pent-up over the past several years due to both Brexit and the COVID-19 pandemic. Gross Profit Total gross profit in the U.K. during the six months ended June 30, 2021 increased $60.2 million, or 63.8%, as compared to the same period in 2020. Total same store gross profit in the U.K. during the six months ended June 30, 2021 increased $60.0 million, or 65.3%, as compared to the same period in 2020. On a constant currency basis, total same store gross profit increased 50.6%, driven by improvements in all of our operations. New vehicle retail same store gross profit on a constant currency basis increased 67.9%, driven by a 52.3% increase in new vehicle retail same store average gross profit per unit sold, coupled with a 10.3% increase in new vehicle retail same store unit sales. The increase in new vehicle retail same store gross profit per unit sold reflects both increased demand and supply constraints related to the COVID-19 pandemic as many manufacturers had put a hold on production due to the global semiconductor chip shortage. Used vehicle retail same store gross profit on a constant currency basis increased 90.0% on a 28.8% increase in used vehicle retail same store average gross profit per unit sold, coupled with a 47.5% increase in used vehicle retail same store unit sales. The increase in used vehicle retail same store average gross profit per unit sold reflects higher demand and new vehicle supply shortages. Parts and service same store gross profit on a constant currency basis increased 38.6% as all parts and service businesses increased with the reduction of COVID-19 restrictions. F&I same store gross profit on a constant currency basis increased 22.8% as an increase in retail unit sales volumes was partially offset with lower penetration rates, lower income per contract on VSC and other product offerings and an overall increase in our chargeback experience. Total same store gross margin in the U.K. increased 130 basis points driven by improved parts and service margins, reflecting higher internal work as a result of increased new and used sales volumes, and higher new and used vehicle margins because of increased demand and vehicle supply constraints. SG&A Expenses Our SG&A expenses consist primarily of personnel costs, including salaries, commissions and incentive-based compensation, as well as rent and facility costs, advertising and other expenses (which includes legal, professional fees and general corporate expenses). Total SG&A expenses in the U.K. during the six months ended June 30, 2021 increased $17.5 million, or 19.9%, as compared to the same period in 2020. Total same store SG&A expenses in the U.K. during the six months ended June 30, 2021, increased $17.9 million, or 21.0%, as compared to the same period in 2020. On a constant currency basis, total same store SG&A expenses increased 10.5%, driven by the increase of business activity as COVID-19 restrictions were lifted early in the second quarter of 2021. We have continued to focus on cost discipline throughout the year. As a percentage of gross profit, total same store SG&A expenses decreased from 92.6% for the six months ended 2020 to 67.8% for the same period of 2021 driven by productivity gains and higher vehicle margins achieved during the six months ended June 30, 2021 as compared to the same period in 2020. Total same store SG&A expenses in 2020 included $1.2 million in severance costs for redundancy due to the COVID-19 pandemic. 40 Table of Contents Reported Operating Data — Brazil (In millions, except unit data) Three Months Ended June 30, 2021 2020 Increase/ (Decrease) % Change Currency Impact on Current Period Results Constant Currency % Change Revenues: New vehicle retail sales $ 49.8 $ 19.8 $ 30.0 151.8 % $ 0.6 148.5 % Used vehicle retail sales 11.8 7.5 4.4 58.4 % 0.1 56.6 % Used vehicle wholesale sales 2.6 2.9 (0.2) (8.3) % 0.1 (10.9) % Total used 14.5 10.3 4.1 39.9 % 0.2 37.7 % Parts and service sales 9.2 5.9 3.3 55.9 % 0.1 53.4 % F&I, net 1.4 0.6 0.8 139.1 % — 136.2 % Total revenues $ 74.8 $ 36.6 $ 38.2 104.5 % $ 1.0 101.6 % Gross profit: New vehicle retail sales $ 5.2 $ 1.4 $ 3.8 274.3 % $ 0.1 270.4 % Used vehicle retail sales 1.0 0.4 0.5 126.0 % — 124.6 % Used vehicle wholesale sales 0.2 0.1 0.1 149.8 % — 145.5 % Total used 1.2 0.5 0.7 129.7 % — 127.9 % Parts and service sales 4.0 2.5 1.6 63.9 % 0.1 61.5 % F&I, net 1.4 0.6 0.8 139.1 % — 136.2 % Total gross profit $ 11.8 $ 4.9 $ 6.8 138.6 % $ 0.2 135.5 % Gross margin: New vehicle retail sales 10.4 % 7.0 % 3.4 % Used vehicle retail sales 8.2 % 5.8 % 2.5 % Used vehicle wholesale sales 7.6 % 2.8 % 4.8 % Total used 8.1 % 4.9 % 3.2 % Parts and service sales 43.9 % 41.8 % 2.2 % Total gross margin 15.7 % 13.5 % 2.3 % Units sold: Retail new vehicles sold 1,451 694 757 109.1 % Retail used vehicles sold 500 356 144 40.4 % Wholesale used vehicles sold 235 324 (89) (27.5) % Total used 735 680 55 8.1 % Average sales price per unit sold: New vehicle retail $ 34,313 $ 28,495 $ 5,818 20.4 % $ 438 18.9 % Used vehicle retail $ 23,671 $ 20,983 $ 2,687 12.8 % $ 271 11.5 % Gross profit per unit sold: New vehicle retail sales $ 3,578 $ 1,999 $ 1,579 79.0 % $ 38 77.1 % Used vehicle retail sales $ 1,951 $ 1,213 $ 739 60.9 % $ 12 59.9 % Used vehicle wholesale sales $ 850 $ 247 $ 603 NM $ 15 NM Total used $ 1,599 $ 752 $ 847 112.6 % $ 13 110.8 % F&I PRU $ 707 $ 550 $ 158 28.7 % $ 8 27.1 % Other: SG&A expenses $ 8.1 $ 5.6 $ 2.5 44.0 % $ 0.1 42.2 % SG&A as % gross profit 68.8 % 114.0 % (45.2) % NM — Not Meaningful 41 Table of Contents Same Store Operating Data — Brazil (In millions, except unit data) Three Months Ended June 30, 2021 2020 Increase/ (Decrease) % Change Currency Impact on Current Period Results Constant Currency % Change Revenues: New vehicle retail sales $ 49.8 $ 19.8 $ 30.0 151.8 % $ 0.6 148.5 % Used vehicle retail sales 11.8 7.4 4.4 59.0 % 0.1 57.2 % Used vehicle wholesale sales 2.6 2.9 (0.2) (8.3) % 0.1 (10.9) % Total used 14.5 10.3 4.2 40.3 % 0.2 38.1 % Parts and service sales 9.2 5.9 3.3 55.9 % 0.1 53.4 % F&I, net 1.4 0.6 0.8 139.1 % — 136.2 % Total revenues $ 74.8 $ 36.6 $ 38.3 104.6 % $ 1.0 101.8 % Gross profit: New vehicle retail sales $ 5.2 $ 1.4 $ 3.8 274.3 % $ 0.1 270.4 % Used vehicle retail sales 1.0 0.4 0.6 128.5 % — 127.1 % Used vehicle wholesale sales 0.2 0.1 0.1 149.8 % — 145.5 % Total used 1.2 0.5 0.7 131.8 % — 130.0 % Parts and service sales 4.0 2.5 1.6 63.9 % 0.1 61.5 % F&I, net 1.4 0.6 0.8 139.1 % — 136.2 % Total gross profit $ 11.8 $ 4.9 $ 6.9 138.8 % $ 0.2 135.7 % Gross margin: New vehicle retail sales 10.4 % 7.0 % 3.4 % Used vehicle retail sales 8.3 % 5.8 % 2.5 % Used vehicle wholesale sales 7.6 % 2.8 % 4.8 % Total used 8.2 % 4.9 % 3.2 % Parts and service sales 43.9 % 41.8 % 2.2 % Total gross margin 15.8 % 13.5 % 2.3 % Units sold: Retail new vehicles sold 1,451 694 757 109.1 % Retail used vehicles sold 500 356 144 40.4 % Wholesale used vehicles sold 235 324 (89) (27.5) % Total used 735 680 55 8.1 % Average sales price per unit sold: New vehicle retail $ 34,313 $ 28,495 $ 5,818 20.4 % $ 438 18.9 % Used vehicle retail $ 23,671 $ 20,905 $ 2,766 13.2 % $ 273 11.9 % Gross profit per unit sold: New vehicle retail sales $ 3,578 $ 1,999 $ 1,579 79.0 % $ 38 77.1 % Used vehicle retail sales $ 1,959 $ 1,204 $ 755 62.7 % $ 12 61.7 % Used vehicle wholesale sales $ 850 $ 247 $ 603 NM $ 15 NM Total used $ 1,605 $ 748 $ 856 114.5 % $ 13 112.8 % F&I PRU $ 707 $ 550 $ 158 28.7 % $ 8 27.1 % Other: SG&A expenses $ 8.0 $ 5.6 $ 2.3 41.7 % $ 0.1 39.9 % SG&A as % gross profit 67.6 % 114.0 % (46.4) % NM — Not Meaningful 42 Table of Contents The following discussion of our Brazil operating results is on actual and same store basis. The difference between reported amounts and same store amounts is related to acquisition and disposition activity, as well as new add-point openings. During the second quarter of 2021, as a result of the COVID-19 pandemic, our dealership showrooms in São Paulo were required to close from April 1, 2021 through April 18, 2021, however our parts and service operations remained open for essential services. Our dealerships located outside of São Paulo were fully operational unlike the comparable period in 2020 where all of our showrooms in Brazil were closed the entire month of April and then only open limited hours for the remainder of the quarter . Revenues Total revenues in Brazil during the three months ended June 30, 2021 increased $38.2 million, or 104.5%, as compared to the same period in 2020. Total same store revenues in Brazil during the three months ended June 30, 2021 increased $38.3 million, or 104.6%, as compared to the same period in 2020. On a constant currency basis, total same store revenues increased 101.8% driven by increases in all business lines except used vehicle wholesale sales. This increase in revenue was the result of the lifting of COVID-19 restrictions and increased customer demand in 2021 as compared to last year. Gross Profit Total gross profit in Brazil during the three months ended June 30, 2021 increased $6.8 million, or 138.6%, as compared to the same period in 2020. Total same store gross profit during the three months ended June 30, 2021 increased $6.9 million, or 138.8%, as compared to the same period in 2020. On a constant currency basis, total same store gross profit increased 135.7% driven by increases in all business lines. New vehicle retail same store gross profit on a constant currency basis increased 270.4% driven by a 109.1% increase in new vehicle retail same store units sales and a 77.1% increase in new vehicle retail same store average gross profit per unit sold. The increase in new vehicle same store gross profit per retail unit sold was the result of increased consumer demand and inventory constraints as OEM’s are producing and delivering fewer vehicles due to the global semiconductor chip shortage. At June 30, 2021, our Brazil new vehicle inventory stood at a 32 days’ supply, which was 49 days lower than the same period last year and 5 days higher than December 31, 2020 days’ supply of 27. Used vehicle retail same store gross profit on a constant currency basis increased 127.1%, reflecting the 61.7% increase in used vehicle retail same store average gross profit per unit sold coupled with a 40.4% increase in used vehicle retail same store unit sales. The improvement in used same store retail gross profit per retail unit was driven by new vehicle inventory shortages, which drove customers to purchase used vehicles and an improved selling environment as compared to 2020. Parts and service same store gross profit on a constant currency basis increased 61.5% driven by increases in our customer-pay, warranty and collision operations reflecting the increase in business activity over the prior year. F &I same store gross profit on a constant currency basis increased 136.2%, driven by increases in same store retail unit sales and penetration rates partially offset by a decline in income per contract for our retail finance fees. Total same store gross margin increased 230 basis points in the second quarter of 2021 compared to the same period of 2020 as a result of increases in all of our business lines resulting from the improved selling environment, consumer demand and supply constraints. SG&A Expenses Our SG&A expenses consist primarily of personnel costs, including salaries, commissions and incentive-based compensation, as well as rent and facility costs, advertising and other expenses (which includes legal, professional fees and general corporate expenses). Total SG&A expenses in Brazil during the three months ended June 30, 2021 increased $2.5 million, or 44.0%, as compared to the same period in 2020. Total same store SG&A expenses in Brazil during the three months ended June 30, 2021 increased $2.3 million, or 41.7%, as compared to the same period in 2020. On a constant currency basis, total same store SG&A expenses increased 39.9%, driven by increased variable commission payments as a result of increased sales and margins during the second quarter of 2021 as compared to last year. SG&A as a percentage of gross profit decreased from 114.0% in 2020 to 67.6% in 2021 reflecting the 135.7% increase in total same store gross profit driven by productivity gains and higher vehicle margins realized during the second quarter of 2021. We continued to focus on cost discipline throughout the second quarter of 2021. 43 Table of Contents Reported Operating Data - Brazil (In millions, except unit data) Six Months Ended June 30, 2021 2020 Increase/ (Decrease) % Change Currency Impact on Current Period Results Constant Currency % Change Revenues: New vehicle retail sales $ 83.9 $ 77.3 $ 6.7 8.6 % $ (12.4) 24.7 % Used vehicle retail sales 22.5 27.4 (4.9) (17.9) % (3.4) (5.6) % Used vehicle wholesale sales 4.6 6.7 (2.1) (30.8) % (0.5) (23.3) % Total used 27.1 34.1 (7.0) (20.5) % (3.9) (9.1) % Parts and service sales 17.1 15.5 1.6 10.4 % (2.1) 24.2 % F&I, net 2.8 2.3 0.5 20.1 % (0.4) 38.8 % Total revenues $ 130.9 $ 129.1 $ 1.8 1.4 % $ (18.8) 15.9 % Gross profit: New vehicle retail sales $ 8.6 $ 4.9 $ 3.7 75.1 % $ (1.2) 100.2 % Used vehicle retail sales 2.1 1.5 0.6 40.6 % (0.3) 61.1 % Used vehicle wholesale sales 0.4 0.3 0.1 30.0 % (0.1) 47.8 % Total used 2.5 1.8 0.7 38.9 % (0.4) 59.0 % Parts and service sales 7.4 6.7 0.7 10.8 % (0.9) 25.0 % F&I, net 2.8 2.3 0.5 20.1 % (0.4) 38.8 % Total gross profit $ 21.2 $ 15.6 $ 5.5 35.5 % $ (2.9) 54.3 % Gross margin: New vehicle retail sales 10.2 % 6.3 % 3.9 % Used vehicle retail sales 9.3 % 5.4 % 3.9 % Used vehicle wholesale sales 7.9 % 4.2 % 3.7 % Total used 9.0 % 5.2 % 3.9 % Parts and service sales 43.3 % 43.1 % 0.2 % Total gross margin 16.2 % 12.1 % 4.1 % Units sold: Retail new vehicles sold 2,622 2,665 (43) (1.6) % Retail used vehicles sold 1,016 1,454 (438) (30.1) % Wholesale used vehicles sold 469 799 (330) (41.3) % Total used 1,485 2,253 (768) (34.1) % Average sales price per unit sold: New vehicle retail $ 32,011 $ 28,994 $ 3,017 10.4 % $ (4,728) 26.7 % Used vehicle retail $ 22,143 $ 18,847 $ 3,296 17.5 % $ (3,331) 35.2 % Gross profit per unit sold: New vehicle retail sales $ 3,273 $ 1,839 $ 1,434 78.0 % $ (469) 103.5 % Used vehicle retail sales $ 2,051 $ 1,019 $ 1,032 101.2 % $ (300) 130.6 % Used vehicle wholesale sales $ 788 $ 356 $ 432 NM $ (108) NM Total used $ 1,652 $ 784 $ 868 110.7 % $ (239) 141.2 % F&I PRU $ 758 $ 557 $ 200 35.9 % $ (118) 57.2 % Other: SG&A expenses $ 15.2 $ 16.2 $ (1.0) (6.4) % $ (1.9) 5.5 % SG&A as % gross profit 71.7 % 103.8 % (32.1) % NM — Not Meaningful 44 Table of Contents Same Store Operating Data - Brazil (In millions, except unit data) Six Months Ended June 30, 2021 2020 Increase/ (Decrease) % Change Currency Impact on Current Period Results Constant Currency % Change Revenues: New vehicle retail sales $ 83.9 $ 77.3 $ 6.7 8.6 % $ (12.4) 24.7 % Used vehicle retail sales 22.5 27.4 (4.9) (17.8) % (3.4) (5.4) % Used vehicle wholesale sales 4.6 6.7 (2.1) (30.8) % (0.5) (23.3) % Total used 27.1 34.1 (7.0) (20.4) % (3.9) (9.0) % Parts and service sales 17.1 15.5 1.6 10.4 % (2.1) 24.2 % F&I, net 2.8 2.3 0.5 20.1 % (0.4) 38.8 % Total revenues $ 130.9 $ 129.1 $ 1.8 1.4 % $ (18.8) 16.0 % Gross profit: New vehicle retail sales $ 8.6 $ 4.9 $ 3.7 75.1 % $ (1.2) 100.2 % Used vehicle retail sales 2.1 1.5 0.6 41.1 % (0.3) 61.8 % Used vehicle wholesale sales 0.4 0.3 0.1 30.0 % (0.1) 47.8 % Total used 2.5 1.8 0.7 39.3 % (0.4) 59.5 % Parts and service sales 7.4 6.7 0.7 10.8 % (0.9) 25.0 % F&I, net 2.8 2.3 0.5 20.1 % (0.4) 38.8 % Total gross profit $ 21.2 $ 15.6 $ 5.6 35.5 % $ (2.9) 54.3 % Gross margin: New vehicle retail sales 10.2 % 6.3 % 3.9 % Used vehicle retail sales 9.3 % 5.4 % 3.9 % Used vehicle wholesale sales 7.9 % 4.2 % 3.7 % Total used 9.1 % 5.2 % 3.9 % Parts and service sales 43.3 % 43.1 % 0.1 % Total gross margin 16.2 % 12.1 % 4.1 % Units sold: Retail new vehicles sold 2,622 2,665 (43) (1.6) % Retail used vehicles sold 1,016 1,454 (438) (30.1) % Wholesale used vehicles sold 469 799 (330) (41.3) % Total used 1,485 2,253 (768) (34.1) % Average sales price per unit sold: New vehicle retail $ 32,011 $ 28,994 $ 3,017 10.4 % $ (4,728) 26.7 % Used vehicle retail $ 22,143 $ 18,828 $ 3,315 17.6 % $ (3,334) 35.3 % Gross profit per unit sold: New vehicle retail sales $ 3,273 $ 1,839 $ 1,434 78.0 % $ (469) 103.5 % Used vehicle retail sales $ 2,055 $ 1,018 $ 1,037 101.9 % $ (301) 131.5 % Used vehicle wholesale sales $ 788 $ 356 $ 432 NM $ (108) NM Total used $ 1,655 $ 783 $ 872 111.4 % $ (240) 142.0 % F&I PRU $ 758 $ 557 $ 200 35.9 % $ (118) 57.2 % Other: SG&A expenses $ 15.1 $ 16.2 $ (1.0) (6.5) % $ (1.9) 5.3 % SG&A as % gross profit 71.4 % 103.5 % (32.1) % NM — Not Meaningful 45 Table of Contents The following discussion of our Brazil operating results is on actual and same store basis. The difference between reported amounts and same store amounts is related to acquisition and disposition activity, as well as new add-point openings. Brazil saw a rise in COVID-19 cases due to the Brazilian variant in the first quarter of 2021, which led the government to cancel Carnival in 2021 and implemented various lockdowns for non-essential businesses. As such, many of our showrooms were closed periodically throughout the first and second quarters of 2021 impacting our ability to sell new and used vehicles. In the prior year, beginning March 20, 2020, all our dealerships were required to close in efforts to stop the spread of the virus and while our service centers reopened and operated throughout the second quarter, our showrooms did not reopen until May 2020 with reduced hours. Revenues Total and same store revenues in Brazil during the six months ended June 30, 2021 increased $1.8 million, or 1.4%, as compared to the same period in 2020. On a constant currency basis, total same store revenues increased 16.0% driven by increases in new vehicle, parts and services and F&I sales which were partially offset by declines in used vehicle and used vehicle wholesale revenu es. The increases in new vehicle, parts and service, and F&I revenues were driven by improved business conditions and increased business activity as the COVID-19 pandemic had a lesser impact in 2021 compared to a year ago. Used vehicle retail same store revenues on a constant currency basis decreased 5.4%, as a 30.1% decrease in used vehicle retail same store unit sales more than offset a 35.3% increase in used vehicle retail same store average sales price per unit sold. Used vehicle wholesale same store revenues decreased 23.3% on a constant currency basis reflecting the 41.3% decline in used vehicle wholesale units . The decline in used retail and wholesale same store units sold reflects challenges with the availability of inventory. The improvement in used vehicle retail same store average sales price per unit sold reflect higher demand in a supply constraint environment. Gross Profit Total gross profit in Brazil during the six months ended June 30, 2021 increased $5.5 million, or 35.5%, as compared to the same period in 2020. Total same store gross profit in Brazil during the six months ended June 30, 2021 increased $5.6 million, or 35.5%, as compared to the same period in 2020. On a constant currency basis, total same store gross profit increased 54.3% driven by increases in all business lines. New vehicle retail same store gross profit on a constant currency basis increased 100.2%, driven by a 103.5% increase in new vehicle retail same store average gross profit per unit sold partially offset by a 1.6% decrease in new vehicle retail same store units sold. Used vehicle retail same store gross profit on a constant currency basis increased 61.8%, reflecting a 131.5% increase in used vehicle retail same store average gross profit per unit sold partially offset by a 30.1% decrease in used vehicle retail same store u nit sales. The improvement in new and used vehicle retail same store gross profit and gross profit per unit reflects increased consumer demand and inventory constraints experienced during the COVID-19 pandemic as OEMs are producing and delivering fewer vehicles due to global semiconductor chip shortage and have not returned to normal production levels. Parts and service same store gross profit increased 25.0% on a constant currency basis, driven by improvements in customer-pay and warranty reflecting the increase in business activity over the prior year . F&I same store gross profit on a constant currency basis increased 38.8% driven by an increase in penetration rates partially offset by a decline in retail unit sales. Total same store gross margin increased 410 basis points in the first six months of 2021 compared to the same period on 2020 as a result of increases in all of our business lines resulting from the improved selling environment, consumer demand and supply constraints. SG&A Expenses Our SG&A expenses consist primarily of personnel costs, including salaries, commissions and incentive-based compensation, as well as rent and facility costs, advertising and other expenses (which includes legal, professional fees and general corporate expenses). Total SG&A expenses in Brazil during the six months ended June 30, 2021 decreased $1.0 million, or 6.4%, as compared to the same period in 2020. Total same store SG&A expenses in Brazil during the six months ended June 30, 2021, decreased $1.0 million, or 6.5%, as compared to the same period in 2020. On a constant currency basis, total same store SG&A expenses increased 5.3%, driven by increased variable commission payments as a result of increased sales and margins during the second quarter of 2021 as compared to last year. Total same store SG&A as a percentage of gross profit decreased from 103.5% in 2020 to 71.4% in 2021 driven by productivity gains and higher vehicle margins realized during the second quarter of 2021. We continued to focus on cost discipline throughout the first six months of 2021. Total same store SG&A expenses in 2020 included $0.9 million of severance costs associated with the termination of employees as a result of the COVID-19 pandemic. 46 Table of Contents The following tables (in millions) and discussion of our results of operations are on a consolidated basis, unless otherwise noted. Three Months Ended June 30, 2021 2020 Increase/ (Decrease) % Change Depreciation and amortization expense $ 18.8 $ 18.8 $ — 0.2 % Floorplan interest expense $ 8.8 $ 10.1 $ (1.3) (13.2) % Other interest expense, net $ 13.7 $ 16.2 $ (2.5) (15.3) % Provision for income taxes $ 52.3 $ 12.2 $ 40.1 329.9 % Six Months Ended June 30, 2021 2020 Increase/ (Decrease) % Change Depreciation and amortization expense $ 38.3 $ 37.4 $ 0.9 2.4 % Floorplan interest expense $ 16.4 $ 23.0 $ (6.6) (28.8) % Other interest expense, net $ 27.5 $ 34.3 $ (6.8) (19.9) % Provision for income taxes $ 81.7 $ 21.3 $ 60.4 284.1 % Depreciation and Amortization Expense Total depreciation and amortization expense during the three and six months ended June 30, 2021 as compared to the same periods in 2020 had no material changes. Floorplan Interest Expense Total floorplan interest expense during the three months ended June 30, 2021 decreased $1.3 million, or 13.2%, as compared to the same period in 2020. For the six months ended June 30, 2021, floorplan interest expense decreased $6.6 million, or 28.8%, as compared to the same period in 2020. Our floorplan interest expense fluctuates with changes in our borrowings outstanding and interest rates, which are based on LIBOR, Prime rate or a benchmark rate. To mitigate the impact of interest rate fluctuations, we employ an interest rate hedging strategy, whereby we swap variable interest rate exposure on a portion of our borrowings for a fixed interest rate. The decrease in both comparative periods is primarily due to lower floorplan borrowings as a result of lower inventory levels and lower weighted average interest rates mainly due to a decline in LIBOR, partially offset by higher realized expense on our interest rate swaps and unrealized loss on interest rate swaps of $2.3 million recognized during the three months ended June 30, 2021, primarily resulting from the impact of the de-designation of certain interest rate swaps due to lower inventory levels. Refer to Note 6. Financial Instruments and Fair Value Measurements within our Notes to Condensed Consolidated Financial Statements for additional details of the interest rate swaps. Other Interest Expense, Net Total other interest expense, net during the three months ended June 30, 2021 decreased $2.5 million, or 15.3%, as compared to the same period in 2020. For the six months ended June 30, 2021, other interest expense decreased $6.8 million, or 19.9%, as compared to the same period 2020. Other interest expense, net consists of interest charges primarily on our Senior Notes, real estate related debt and other debt, partially offset by interest income. The decrease in both comparative periods was primarily attributable to lower interest rates achieved through refinancing our debt in the previous year, including the redemption of $300.0 million in aggregate principal of our 5.25% Senior Notes on April 2, 2020, which was funded at lower interest rates through increased borrowings on our real estate related debt, and the redemption of $550.0 million aggregate principal of our 5.00% Senior Notes on September 2, 2020, which was funded through the issuance of $550.0 million aggregate principal amount of our 4.00% Senior Notes on August 17, 2020. Provision for Income Taxes Provision for income taxes of $52.3 million during the three months ended June 30, 2021 increased by $40.1 million, or 329.9%, as compared to the same period in 2020. For the six months ended June 30, 2021, our provision for income taxes of $81.7 million increased $60.4 million, or 284.1%, as compared to the same period in 2020. These increases were primarily due to higher pre-tax book income. For the three months ended June 30, 2021, our effective tax rate decreased to 21.5% from 28.7% as compared to the same period in 2020. This decrease was primarily due to the increase of deferred tax assets based on a U.K. tax rate increase enacted in June 2021 effective beginning April 1, 2023, and losses incurred in the U.K. and Brazil during the three months ended June 30, 2020 that were benefited at a tax rate lower than the U.S. statutory rate. We expect our effective tax rate for the remainder of 2021 will be between 22.5 % and 23.5%. We believe that it is more-likely-than-not that our deferred tax assets, net of valuation allowances provided, will be realized, based primarily on assumptions of our future taxable income, considering future reversals of existing taxable temporary differences. 47 Table of Contents Liquidity and Capital Resources Our liquidity and capital resources are primarily derived from cash on hand, cash temporarily invested as a pay down of our U.S. Floorplan Line and FMCC Facility levels (refer to Note 9. Floorplan Notes Payable in our Notes to Condensed Consolidated Financial Statements for additional information), cash from operations, borrowings under our credit facilities, which provide vehicle floorplan financing, working capital, dealership and real estate acquisition financing and proceeds from debt and equity offerings. Based on current facts and circumstances, we believe we will have adequate cash flow, coupled with available borrowing capacity, to fund our current operations, capital expenditures and acquisitions for the next 12 months. If economic and business conditions deteriorate or if our capital expenditures or acquisition plans for 2021 change, we may need to access the private or public capital markets to obtain additional funding. Refer to Sources and Uses of Liquidity from Investing Activities below for further discussion of expectations regarding future capital expenditures. Cash on Hand As of June 30, 2021, our total cash on hand was $198.7 million. The balance of cash on hand excludes $326.1 million of immediately available funds used to pay down our U.S. Floorplan Line as of June 30, 2021. We use the pay down of our U.S. Floorplan Line and FMCC Facility as a channel for the short-term investment of excess cash. Cash Flows We utilize various credit facilities to finance the purchase of our new and used vehicle inventory. With respect to all new vehicle floorplan borrowings in the normal course of business, the manufacturers of the vehicles draft our credit facilities directly with no cash flows to or from us. With respect to borrowings for used vehicle financing, we finance up t o 85% o f the value of our used vehicle inventory in the U.S., and the funds flow directly between us and the lender. We categorize the cash flows associated with borrowings and repayments on these various credit facilities as Cash Flows from Operating Activities or Cash Flows from Financing Activities in our Condensed Consolidated Statements of Cash Flows. All borrowings from, and repayments to, lenders affiliated with our vehicle manufacturers (excluding the cash flows from or to manufacturer-affiliated lenders participating in our syndicated lending group) are presented within Cash Flows from Operating Activities in the Condensed Consolidated Statements of Cash Flows in conformity with U.S. GAAP. All borrowings from, and repayments to, the Revolving Credit Facility (refer to Note 9. Floorplan Notes Payable in the Notes to Condensed Consolidated Financial Statements for additional information) (including the cash flows from or to manufacturer-affiliated lenders participating in the facility) and other credit facilities in the U.K. and Brazil unaffiliated with our manufacturer partners (collectively, “Non-OEM Floorplan Credit Facilities”), are presented within Cash Flows from Financing Activities in conformity with U.S. GAAP. However, the incurrence of all floorplan notes payable represents an activity necessary to acquire inventory for resale, resulting in a trade payable. Our decision to utilize our Revolving Credit Facility does not substantially alter the process by which our vehicle inventory is financed, nor does it significantly impact the economics of our vehicle procurement activities. Therefore, we believe that all floorplan financing of inventory purchases in the normal course of business should correspond with the related inventory activity and be classified as an operating activity. As a result, we use the non-GAAP measure “Adjusted net cash provided by/used in operating activities” and “Adjusted net cash provided by/used in financing activities” to further evaluate our cash flows. We believe that this classification eliminates excess volatility in our operating cash flows prepared in accordance with U.S. GAAP and avoids the potential to mislead the users of our financial statements. In addition, for dealership acquisitions and dispositions that are negotiated as asset purchases, we do not assume transfer of liabilities for floorplan financing in the execution of the transactions. Therefore, borrowings and repayments of all floorplan financing associated with dealership acquisitions and dispositions are characterized as either Cash Flow from Operating Activities or Cash Flow from Financing Activities in our Condensed Consolidated Statements of Cash Flows presented in conformity with U.S. GAAP, depending on the relationship described above. However, the floorplan financing activity is so closely related to the inventory acquisition process that we believe the presentation of all acquisition and disposition related floorplan financing activities should be classified as investing activity to correspond with the associated inventory activity, which more closely reflects the cash flows associated with our acquisition and disposition strategy and eliminates excess volatility in our operating cash flows prepared in accordance with U.S. GAAP. We have made such adjustments in our adjusted operating cash flow presentations. 48 Table of Contents The following table reconciles cash flows provided by (used in) operating, investing and financing activities on a U.S. GAAP basis to the corresponding adjusted amounts (in millions): Six Months Ended June 30, 2021 2020 % Change CASH FLOWS FROM OPERATING ACTIVITIES: Net cash provided by operating activities: $ 752.1 $ 688.2 9.3 % Change in Floorplan notes payable — credit facilities and other, excluding floorplan offset and net acquisitions and dispositions (376.8) (450.8) Change in Floorplan notes payable — manufacturer affiliates associated with net acquisitions and dispositions and floorplan offset activity (16.0) 0.2 Adjusted net cash provided by operating activities $ 359.4 $ 237.6 51.3 % CASH FLOWS FROM INVESTING ACTIVITIES: Net cash used in investing activities: $ (93.8) $ (61.2) (53.3) % Change in cash paid for acquisitions, associated with Floorplan notes payable 5.3 — Change in proceeds from disposition of franchises, property and equipment, associated with Floorplan notes payable (6.4) — Adjusted net cash used in investing activities $ (94.9) $ (61.2) (55.1) % CASH FLOWS FROM FINANCING ACTIVITIES: Net cash used in financing activities: $ (547.1) $ (579.0) 5.5 % Change in Floorplan notes payable, excluding floorplan offset 393.9 450.7 Adjusted net cash used in financing activities $ (153.3) $ (128.3) (19.4) % Sources and Uses of Liquidity from Operating Activities For the six months ended June 30, 2021, we generated $752.1 million of net cash flows from operating activities. On an adjusted basis for the same period, we generated $359.4 million in net cash flows from operating activities, primarily consisting of $292.9 million in net income, coupled with non-cash adjustments related to depreciation and amortization of $38.3 million, stock-based compensation of $13.2 million and operating lease assets of $11.8 million. Adjusted net cash flows from operating activities also included a $3.1 million adjusted net change in operating assets and liabilities, primarily due to $449.4 million of adjusted net floorplan repayments, partially offset by $444.4 million from decreases in inventory levels as a result of global semiconductor chip shortages. For the six months ended June 30, 2020, we generated $688.2 million of net cash flows from operating activities. On an adjusted basis for the same period, we generated $237.6 million in net cash flows from operating activities, primarily consisting of $60.0 million in net income, coupled with non-cash adjustments related to depreciation and amortization of $37.4 million, asset impairments of $23.8 million, stock-based compensation of $21.7 million, operating lease assets of $12.9 million and a loss on extinguishment of $10.4 million related to the 5.25% Senior Notes. Adjusted net cash flows from operating activities also included a $70.9 million adjusted net change in operating assets and liabilities, including cash inflows of $536.7 million from decreases in inventory levels, $77.2 million from net decreases in contracts-in-transit and vehicle receivables and $64.8 million from decreases in accounts and notes receivable. These cash inflows were partially offset by cash outflows of $540.9 million from an adjusted net decrease of floorplan borrowings and $48.0 million from decreases in accounts payable and accrued expenses. Working Capital At June 30, 2021, we had a $417.9 million surplus of working capital. This represents an increase of $256.4 million from December 31, 2020, when we had a $161.5 million surplus of working capital. Changes in our working capital are typically explained by changes in floorplan notes payable outstanding. Borrowings on our new vehicle floorplan notes payable, subject to agreed-upon pay-off terms, are equal to 100% of the factory invoice of the vehicles. Borrowings on our used vehicle floorplan notes payable, subject to agreed-upon pay-off terms, are limited to 85% of the aggregate book value of our used vehicle inventory, except in the U.K. and Brazil. At times, we have made payments on our floorplan notes payable using excess cash flows from operations and the proceeds of debt and equity offerings. As needed, we re-borrow the amounts later, up to the limits on the floorplan notes payable discussed above, for working capital, acquisitions, capital expenditures or general corporate purposes. 49 Table of Contents Sources and Uses of Liquidity from Investing Activities During the six months ended June 30, 2021, we used $93.8 million in net cash flow from investing activities. On an adjusted basis for the same period, we used $94.9 million in net cash flows from investing activities, primarily consisting of $63.8 million used for purchases of property and equipment and to construct new and improve existing facilities and $44.6 million used for acquisition activity, partially offset by cash inflows of $13.4 million related to the disposition of franchises and property and equipment. Of the $63.8 million in property and equipment purchases, $47.7 million was used for non-real estate related capital expenditures, $17.5 million was used for the purchase of real estate associated with existing dealership operations, partially offset by the $1.4 million net increase in the accrual for capital expenditures from fiscal year-end. During the six months ended June 30, 2020, we used $61.2 million in net cash flows from investing activities on both unadjusted and adjusted basis, which represents $60.5 million used for purchases of property and equipment and to construct new and improve existing facilities and $1.3 million used for acquisition activity, partially offset by cash inflows of $0.6 million related to the disposition of property and equipment. Of the $60.5 million in property and equipment purchases, $35.3 million was used for non-real estate related capital expenditures, $22.4 million was used for the purchase of real estate associated with existing dealership operations and $2.7 million represented the net decrease in the accrual for capital expenditures from fiscal year-end. Capital Expenditures Our capital expenditures include costs to extend the useful lives of current facilities, as well as to start or expand operations. In general, expenditures relating to the construction or expansion of dealership facilities are driven by dealership acquisition activity, new franchises being granted to us by a manufacturer, significant growth in sales at an existing facility, relocation opportunities or manufacturer imaging programs. We critically evaluate all planned future capital spending, working closely with our manufacturer partners to maximize the return on our investments. We forecast our capital expenditures for the full year of 2021 will be approximately $110 million excluding expenditures related to real estate purchases and future acquisitions, which could generally be funded from excess cash. Acquisitions We evaluate the expected return on investment in our consideration of potential business purchases. Cash needed to complete our acquisitions generally comes from excess working capital, operating cash flows of our dealerships and borrowings under our floorplan facilities, term loans and our Acquisition Line. Sources and Uses of Liquidity from Financing Activities For the six months ended June 30, 2021, we used $547.1 million in net cash flows from financing activities. On an adjusted basis for the same period, we used $153.3 million in net cash flows from financing activities, primarily related to cash outflows of $149.7 million in net repayments on our U.S. Floorplan Line (representing the net cash activity in our floorplan offset account), $18.6 million related to the repurchase of our common stock and $11.7 million in dividend payments, partially offset by $28.2 million net borrowings on our Acquisition Line. For the six months ended June 30, 2020, we used $579.0 million in n et cash flows from financing activities. On an adjusted basis for the same period, we used $128.3 million in net cash flows from financing activities, primarily related to cash outflows of $307.9 million related to the extinguishment of our 5.25% Senior Notes, $48.9 million related to the repurchase of our common stock and $5.5 million in dividend payments. These cash outflows were partially offset by $160.1 million net borrowings on other debt, which primarily reflected increased mortgage borrowings in the U.S. to partially fund the redemption of the 5.25% Senior Notes, as well as $68.8 million net borrowings on our Acquisition Line. 50 Table of Contents Credit Facilities, Debt Instruments and Other Financing Arrangements Our various credit facilities, debt instruments and other financing arrangements are used to finance the purchase of inventory and real estate, provide acquisition funding and provide working capital for general corporate purposes. The following table summarizes the commitment of our credit facilities as of June 30, 2021 (in millions): Total Commitment Outstanding Available U.S. Floorplan Line (1) $ 1,396.0 $ 185.4 $ 1,210.6 Acquisition Line (2) 349.0 94.3 254.7 Total revolving credit facility 1,745.0 279.8 1,465.2 FMCC Facility (3) 300.0 26.8 273.2 Total U.S. credit facilities (4) $ 2,045.0 $ 306.6 $ 1,738.4 (1) The available balance at June 30, 2021 includes $326.1 million of immediately available funds. The remaining available balance can be used for inventory financing. (2) The outstanding balance of $94.3 million is related to outstanding letters of credit of $17.8 million and $76.5 million in borrowings as of June 30, 2021. The borrowings outstanding under the Acquisition Line included no USD borrowings and £ 55 million of GBP borrowings translated at the spot rate on the day borrowed, solely for the purpose of calculating the outstanding and available borrowings under the Acquisition Line. The available borrowings may be limited from time to time, based on certain debt covenants. (3) The available balance at June 30, 2021 does not include any immediately available funds. The available balance can be used for Ford new vehicle inventory financing. (4) The outstanding balance excludes $286.3 million of borrowings with manufacturer-affiliates and third-party financial institutions for foreign and rental vehicle financing not associated with any of our U.S. credit facilities. We have other credit facilities in the U.S., U.K. and Brazil with third-party financial institutions, most of which are affiliated with the automobile manufacturers that provide financing for portions of our new, used and rental vehicle inventories. In addition, we have outstanding debt instruments, including our 4.00% Senior Notes, as well as real estate related and other debt instruments. Refer to Note 8. Debt in our Notes to Condensed Consolidated Financial Statements for further information. Covenants Our Revolving Credit Facility, indentures governing our senior notes and certain mortgage term loans contain customary financial and operating covenants that place restrictions on us, including our ability to incur additional indebtedness, create liens or to sell or otherwise dispose of assets and to merge or consolidate with other entities. Certain of our mortgage agreements contain cross-default provisions that in the event of a default of certain mortgage agreements and of our Revolving Credit Facility, could trigger an uncured default. As of June 30, 2021, we were in compliance with the requirements of the financial covenants under our debt agreements. We are required to maintain the ratios detailed in the following table: As of June 30, 2021 Required Actual Total adjusted leverage ratio < 5.50 1.71 Fixed charge coverage ratio > 1.20 5.35 As of June 30, 2021, we had $198.7 million of cash on hand and an additional $326.1 million invested in our floorplan offset accounts, bringing total cash liquidity to $524.8 million. In addition, we had $254.7 million of additional borrowing capacity on our Acquisition Line, bringing total immediate liquidity to $779.5 million as of June 30, 2021. Based on our position as of June 30, 2021 and our outlook as discussed within Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations, we have sufficient liquidity currently and do not anticipate any material liquidity constraints or issues with our ability to remain in compliance with our debt covenants. Refer to Note 8. Debt and Note 9. Floorplan Notes Payable in our Notes to Condensed Consolidated Financial Statements for further discussion of our debt instruments, credit facilities and other financing arrangements existing as of June 30, 2021. 51 Table of Contents Share Repurchases and Dividends Our Board of Directors from time to time, authorizes the repurchase of shares of our common stock up to a certain monetary limit. During the six months ended June 30, 2021, 125,069 shares were repurchased at an average price of $148.79 per share, for a total of $18.6 million. As of June 30, 2021, we had $150.1 million available under our current share repurchase authorization. During the three months ended June 30, 2021, our Board of Directors approved a quarterly cash dividend of $0.33 per share on all shares of our common stock, which resulted in $5.8 million paid to common shareholders and $0.2 million to unvested RSA holders. During the six months ended June 30, 2021, we have declared cash dividends of $0.64 per share on all shares of our common stock, for a total of $11.3 million paid to common shareholders and $0.4 million to unvested RSA holders. Future share repurchases and the payment of any future dividends are subject to the business judgment of our Board of Directors, taking into consideration our historical and projected results of operations, financial condition, cash flows, capital requirements, covenant compliance, current economic environment and other factors considered relevant.