Market Overview

Asbury Automotive Group Announces Record 2015 Third Quarter Financial Results

Share:

Record third quarter adjusted EPS from continuing operations of $1.43 per diluted share, up 32% over prior year quarter EPS

DULUTH, Ga., Oct. 21, 2015 /PRNewswire/ -- Asbury Automotive Group, Inc. (NYSE: ABG), one of the largest automotive retail and service companies in the U.S., today reported adjusted income from continuing operations for the third quarter 2015 of $37.3 million, or $1.43 per diluted share, versus income from continuing operations in the third quarter 2014 of $32.4 million, or $1.08 per diluted share, a 32% increase per diluted share. Income from continuing operations for the third quarter 2015 was adjusted for a $21.4 million pre-tax gain on divestitures, or $0.50 per diluted share, and a $0.8 million benefit from a lower effective tax rate, or $0.03 per diluted share. See attached reconciliation for reported adjustments related to the third quarter of 2015.  There were no adjustments for the third quarter of 2014.  Net income for the third quarter 2015 was $51.1 million, or $1.96 per diluted share, compared to $32.5 million, or $1.08 per diluted share in the prior year period.

Third Quarter 2015 Highlights (compared to the prior year period):

  • Total revenues increased 14% to $1.7 billion
  • New vehicle revenue up 17%; gross profit up 6%
  • Used vehicle retail revenue up 10%; gross profit up 8%
  • Finance and insurance revenue up 17%
  • Parts and service revenue up 13%; gross profit up 12%
  • Total gross profit increased 11%
  • SG&A expense as a percent of gross profit improved 90 basis points to 69.2%
  • Income from operations increased 16%
  • Operating margin as a percentage of revenue improved 10 basis points to 4.5%
  • Repurchased $104 million of common stock

"Asbury is pleased to announce another record third quarter," said Craig Monaghan, Asbury's President and Chief Executive Officer. "We continue to execute our two-part strategy: to drive operational excellence and to deploy capital to its highest returns.  During the last four quarters, we have acquired dealerships representing over $400 million in annualized revenues, reduced our share count by approximately 15% and improved our operating margins."

"Our current quarter results demonstrate, once again, the strength and diversity of our business model," said Asbury's Executive Vice President and Chief Operating Officer, David Hult. "Despite continued pressure on new vehicle margins, we increased  same store revenues 8%, grew same store gross profit 6% and delivered overall income from operations growth of 16%."

The conference call will be today at 10:00 a.m. Eastern Time and will also be simulcast live on the Internet.  The simulcast can be accessed by logging onto www.asburyauto.com.  A replay will be available at these sites for 30 days.  In addition, a live audio of the call will be accessible to the public by calling (800) 768-6544 (domestic), or (785) 830-7990 (international); passcode - 312559.  Callers should dial in approximately 5 to 10 minutes before the call begins. A conference call replay will be available two hours following the call for seven days, and can be accessed by calling (888) 203-1112 (domestic), or (719) 457-0820 (international); passcode - 312559.

About Asbury Automotive Group, Inc.

Asbury Automotive Group, Inc. ("Asbury"), a Fortune 500 company headquartered in Duluth, Georgia, a suburb of Atlanta, is one of the largest automotive retailers in the U.S.  Built through a combination of organic growth and a series of strategic acquisitions, Asbury operated 84 dealership locations, encompassing 103 franchises for the sale and servicing of 29 domestic and foreign brands of new vehicles as of September 30, 2015.  We also operated 25 collision repair centers and 3 stand-alone used vehicle stores as of September 30, 2015. Asbury offers customers an extensive range of automotive products and services, including new and used vehicle sales and related financing and insurance, vehicle maintenance and repair services, replacement parts and service contracts.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements are statements other than historical fact, and may include statements relating to goals, plans, market conditions and projections regarding Asbury's financial position, liquidity, results of operations, market position and dealership portfolio, the benefits of its restructuring program and other initiatives and future business strategy.  These statements are based on management's current expectations and beliefs and involve significant risks and uncertainties that may cause results to differ materially from those set forth in the statements.  These risks and uncertainties include, among other things, market factors, Asbury's relationships with, and the financial and operational stability of, vehicle manufacturers and other suppliers, acts of God or other incidents which may adversely impact supply from vehicle manufacturers and/or present retail sales challenges, risks associated with Asbury's indebtedness (including available borrowing capacity, compliance with its financial covenants and ability to refinance or repay such indebtedness, particularly upcoming maturities, on favorable terms), Asbury's relationships with, and the financial stability of, its lenders and lessors, risks related to competition in the automotive retail and service industries, general economic conditions both nationally and locally, governmental regulations, legislation, adverse results in litigation and other proceedings, and Asbury's ability to execute its IT initiatives and other operational strategies, Asbury's ability to leverage gains from its dealership portfolio, Asbury's ability to capitalize on opportunities to repurchase its debt and equity securities or purchase properties that it currently leases, and Asbury's ability to stay within its targeted range for capital expenditures.  There can be no guarantees that Asbury's plans for future operations will be successfully implemented or that they will prove to be commercially successful.

These and other risk factors that could cause actual results to differ materially from those expressed or implied in our forward-looking statements are and will be discussed in Asbury's filings with the Securities and Exchange Commission from time to time, including its most recent annual report on Form 10-K and any subsequently filed quarterly reports on Form 10-Q.  We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

 

ASBURY AUTOMOTIVE GROUP, INC.



CONSOLIDATED STATEMENTS OF INCOME  (In millions, except per share data)



(Unaudited)











For the Three Months Ended

September 30,



Increase
(Decrease)



%
Change





2015



2014





REVENUE:

















New vehicle



$

964.0





$

821.3





$

142.7





17

%

Used vehicle:

















Retail



438.8





399.6





39.2





10

%

Wholesale



54.2





57.4





(3.2)





(6)

%

     Total used vehicle



493.0





457.0





36.0





8

%

Parts and service



190.6





168.3





22.3





13

%

Finance and insurance, net



68.8





59.0





9.8





17

%

TOTAL REVENUE



1,716.4





1,505.6





210.8





14

%

GROSS PROFIT:

















New vehicle



52.3





49.2





3.1





6

%

Used vehicle:

















Retail



35.2





32.6





2.6





8

%

Wholesale



(1.8)





(1.4)





(0.4)





29

%

     Total used vehicle



33.4





31.2





2.2





7

%

Parts and service



118.2





105.2





13.0





12

%

Finance and insurance, net



68.8





59.0





9.8





17

%

TOTAL GROSS PROFIT



272.7





244.6





28.1





11

%

OPERATING EXPENSES:

















Selling, general and administrative



188.8





171.5





17.3





10

%

Depreciation and amortization



7.5





6.7





0.8





12

%

Other operating (income) expense, net



(0.2)





0.3





(0.5)





NM



INCOME FROM OPERATIONS



76.6





66.1





10.5





16

%

OTHER (INCOME) EXPENSES:

















Floor plan interest expense



4.1





3.0





1.1





37

%

Other interest expense, net



10.7





9.6





1.1





11

%

Swap interest expense



1.0





0.5





0.5





100

%

Gain on divestitures



(21.4)









(21.4)





NM



Total other (income) expenses, net



(5.6)





13.1





(18.7)





(143)

%

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES



82.2





53.0





29.2





55

%

Income tax expense



31.0





20.6





10.4





50

%

INCOME FROM CONTINUING OPERATIONS



51.2





32.4





18.8





58

%

Discontinued operations, net of tax



(0.1)





0.1





(0.2)





(200)

%

NET INCOME



$

51.1





$

32.5





$

18.6





57

%

EARNINGS PER COMMON SHARE:

















Basic—

















Continuing operations



$

1.98





$

1.09





$

0.89





82

%

Discontinued operations



(0.01)









(0.01)





%

Net income



$

1.97





$

1.09





$

0.88





81

%

Diluted—

















Continuing operations



$

1.96





$

1.08





$

0.88





81

%

Discontinued operations















%

Net income



$

1.96





$

1.08





$

0.88





81

%

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

















Basic



25.9





29.8





(3.9)





(13)

%

Restricted stock



0.1





0.1









%

Performance share units



0.1





0.1









%

Diluted



26.1





30.0





(3.9)





(13)

%

______________________________
NMNot Meaningful

 

 

ASBURY AUTOMOTIVE GROUP, INC.



KEY OPERATING HIGHLIGHTS  (In millions, except per unit data)



(Unaudited)















For the Three Months Ended

September 30,



Increase
(Decrease)



%
Change





2015



2014





Unit sales

















New vehicle:

















Luxury



6,381





5,939





442





7

%

Mid-line import



16,501





15,457





1,044





7

%

Mid-line domestic



5,482





3,258





2,224





68

%

     Total new vehicle



28,364





24,654





3,710





15

%

Used vehicle retail



21,306





19,625





1,681





9

%

Used to new ratio



75.1

%



79.6

%



(450)

bps





Average selling price

















New vehicle



$

33,987





$

33,313





$

674





2

%

Used vehicle retail



20,595





20,362





233





1

%

Average gross profit per unit

















New vehicle:

















Luxury



$

3,197





$

3,620





$

(423)





(12)

%

Mid-line import



1,242





1,359





(117)





(9)

%

Mid-line domestic



2,080





2,056





24





1

%

     Total new vehicle



1,844





1,996





(152)





(8)

%

Used vehicle



1,652





1,661





(9)





(1)

%

Finance and insurance, net



1,385





1,332





53





4

%

Front end yield (1)



3,147





3,180





(33)





(1)

%

Gross margin

















New vehicle:

















Luxury



6.3

%



7.2

%



(90)

bps





Mid-line import



4.6

%



5.1

%



(50)

bps





Mid-line domestic



5.7

%



6.0

%



(30)

bps





     Total new vehicle



5.4

%



6.0

%



(60)

bps





Used vehicle retail



8.0

%



8.2

%



(20)

bps





Parts and service



62.0

%



62.5

%



(50)

bps





Gross profit margin



15.9

%



16.2

%



(30)

bps





SG&A metrics

















Rent expense



$

8.0





$

7.8





$

0.2





3

%

SG&A, excluding rent expense as a percent of gross profit



66.3

%



66.9

%



(60)

bps





Total SG&A as a percentage of gross profit



69.2

%



70.1

%



(90)

bps





Operating metrics

















Income from operations as a percentage of revenue



4.5

%



4.4

%



10

bps





Income from operations as a percentage of gross profit



28.1

%



27.0

%



110

bps





Revenue mix

















New vehicle



56.2

%



54.5

%









Used vehicle retail



25.5

%



26.6

%









Used vehicle wholesale



3.2

%



3.8

%









Parts and service



11.1

%



11.2

%









Finance and insurance



4.0

%



3.9

%









     Total revenue



100.0

%



100.0

%









Gross profit mix

















New vehicle



19.2

%



20.1

%









Used vehicle retail



13.0

%



13.4

%









Used vehicle wholesale



(0.7)

%



(0.6)

%









Parts and service



43.3

%



43.0

%









Finance and insurance



25.2

%



24.1

%









     Total gross profit



100.0

%



100.0

%









_____________________________
(1) Front end yield is calculated as gross profit from new vehicles, used retail vehicles and finance and insurance (net), divided by combined new and used retail sales.

 

 

ASBURY AUTOMOTIVE GROUP, INC.



SAME STORE OPERATING HIGHLIGHTS  (In millions)



(Unaudited)















For the Three Months Ended
September 30,



Increase
(Decrease)



%
Change





2015



2014





Revenue

















New vehicle:

















Luxury



$

321.8





$

290.2





$

31.6





11

%

Mid-line import



431.6





405.1





26.5





7

%

Mid-line domestic



137.1





112.1





25.0





22

%

     Total new vehicle



890.5





807.4





83.1





10

%

Used Vehicle:

















Retail



407.0





391.8





15.2





4

%

Wholesale



50.8





56.1





(5.3)





(9)

%

     Total used vehicle



457.8





447.9





9.9





2

%

Parts and service



181.3





163.9





17.4





11

%

Finance and insurance



62.5





58.2





4.3





7

%

Total revenue



$

1,592.1





$

1,477.4





$

114.7





8

%



















Gross profit

















New vehicle:

















Luxury



$

20.4





$

20.8





$

(0.4)





(2)

%

Mid-line import



20.0





20.7





(0.7)





(3)

%

Mid-line domestic



7.8





6.7





1.1





16

%

     Total new vehicle



48.2





48.2









%

Used Vehicle:

















Retail



32.7





32.0





0.7





2

%

Wholesale



(1.7)





(1.4)





(0.3)





(21)

%

     Total used vehicle



31.0





30.6





0.4





1

%

Parts and service:

















Customer pay



60.8





57.5





3.3





6

%

Reconditioning and preparation



29.1





27.2





1.9





7

%

Warranty



17.4





13.4





4.0





30

%

Wholesale parts



5.1





4.9





0.2





4

%

     Total parts and service



112.4





103.0





9.4





9

%

Finance and insurance



62.5





58.2





4.3





7

%

Total gross profit



$

254.1





$

240.0





$

14.1





6

%



















SG&A expense



$

177.4





$

168.3





$

9.1





5

%

SG&A expense as a percentage of gross profit



69.8

%



70.1

%



(30)

bps





_____________________________
Same store amounts consist of information from dealerships which we operated for all of the months in both comparative periods

 

 

ASBURY AUTOMOTIVE GROUP, INC.



SAME STORE OPERATING HIGHLIGHTS  (Continued)



(Unaudited)











For the Three Months Ended
September 30,



Increase
(Decrease)



%
Change





2015



2014





Unit sales

















New vehicle:

















Luxury



6,371





5,740





631





11

%

Mid-line import



16,096





15,326





770





5

%

Mid-line domestic



3,763





3,258





505





16

%

     Total new vehicle



26,230





24,324





1,906





8

%

Used vehicle retail



19,649





19,303





346





2

%

Used to new ratio



74.9

%



79.4

%



(450)

bps























Average selling price

















New vehicle



$

33,950





$

33,194





$

756





2

%

Used vehicle retail



20,714





20,297





417





2

%



















Average gross profit per unit

















New vehicle:

















Luxury



$

3,202





$

3,624





$

(422)





(12)

%

Mid-line import



1,243





1,351





(108)





(8)

%

Mid-line domestic



2,073





2,056





17





1

%

     Total new vehicle



1,838





1,982





(144)





(7)

%

Used vehicle



1,664





1,658





6





%

Finance and insurance, net



1,362





1,334





28





2

%

Front end yield (1)



3,126





3,172





(46)





(1)

%



















Gross margin

















New vehicle:

















Luxury



6.3

%



7.2

%



(90)

bps





Mid-line import



4.6

%



5.1

%



(50)

bps





Mid-line domestic



5.7

%



6.0

%



(30)

bps





     Total new vehicle



5.4

%



6.0

%



(60)

bps





Used vehicle retail



8.0

%



8.2

%



(20)

bps





Parts and service



62.0

%



62.8

%



(80)

bps





Gross profit margin



16.0

%



16.2

%



(20)

bps





_____________________________
Same store amounts consist of information from dealerships which we operated for all of the months in both comparative periods

(1) Front end yield is calculated as gross profit from new vehicles, used retail vehicles and finance and insurance (net), divided by combined new and used retail sales.

 

 

ASBURY AUTOMOTIVE GROUP, INC.



CONSOLIDATED STATEMENTS OF INCOME



(In millions, except per share data)



(Unaudited)











For the Nine Months Ended
September 30,



Increase
(Decrease)



%
Change





2015



2014





REVENUE:

















New vehicle



$

2,720.7





$

2,378.8





$

341.9





14

%

Used vehicle:

















Retail



1,309.8





1,159.9





149.9





13

%

Wholesale



164.2





159.3





4.9





3

%

     Total used vehicle



1,474.0





1,319.2





154.8





12

%

Parts and service



555.5





495.9





59.6





12

%

Finance and insurance, net



197.6





170.8





26.8





16

%

TOTAL REVENUE



4,947.8





4,364.7





583.1





13

%

GROSS PROFIT:

















New vehicle



152.5





146.4





6.1





4

%

Used vehicle:

















Retail



105.6





99.5





6.1





6

%

Wholesale



(3.2)





(0.9)





(2.3)





256

%

     Total used vehicle



102.4





98.6





3.8





4

%

Parts and service



347.9





306.8





41.1





13

%

Finance and insurance, net



197.6





170.8





26.8





16

%

TOTAL GROSS PROFIT



800.4





722.6





77.8





11

%

OPERATING EXPENSES:

















Selling, general and administrative



546.4





500.5





45.9





9

%

Depreciation and amortization



22.0





19.4





2.6





13

%

Other operating (income) expense, net



0.1





0.2





(0.1)





NM



INCOME FROM OPERATIONS



231.9





202.5





29.4





15

%

OTHER (INCOME) EXPENSES:

















Floor plan interest expense



12.0





9.3





2.7





29

%

Other interest expense, net



31.5





28.2





3.3





12

%

Swap interest expense



2.0





1.5





0.5





33

%

Gain on divestitures



(21.4)









(21.4)





NM



Total other (income) expenses, net



24.1





39.0





(14.9)





(38)

%

INCOME FROM CONTINUING OPERATIONS                 BEFORE INCOME TAXES



207.8





163.5





44.3





27

%

Income tax expense



79.6





63.4





16.2





26

%

INCOME FROM CONTINUING OPERATIONS



128.2





100.1





28.1





28

%

Discontinued operations, net of tax



(0.1)





(0.3)





0.2





(67)

%

NET INCOME



$

128.1





$

99.8





$

28.3





28

%

EARNINGS PER COMMON SHARE:

















Basic—

















Continuing operations



$

4.80





$

3.31





$

1.49





45

%

Discontinued operations







(0.01)





0.01





(100)

%

Net income



$

4.80





$

3.30





$

1.50





45

%

Diluted—

















Continuing operations



$

4.77





$

3.29





$

1.48





45

%

Discontinued operations



(0.01)





(0.01)









%

Net income



$

4.76





$

3.28





$

1.48





45

%

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

















Basic



26.7





30.2





(3.5)





(12)

%

Restricted stock



0.1





0.1









%

Performance share units



0.1





0.1









%

Diluted



26.9





30.4





(3.5)





(12)

%

______________________________
NMNot Meaningful

 

ASBURY AUTOMOTIVE GROUP, INC.



KEY OPERATING HIGHLIGHTS  (In millions, except per unit data)



(Unaudited)











For the Nine Months Ended
September 30,



Increase
(Decrease)



%
Change





2015



2014





Unit sales

















New vehicle:

















Luxury



18,632





17,291





1,341





8

%

Mid-line import



47,052





43,941





3,111





7

%

Mid-line domestic



14,137





10,115





4,022





40

%

     Total new vehicle



79,821





71,347





8,474





12

%

Used vehicle retail



63,164





56,968





6,196





11

%

Used to new ratio



79.1

%



79.8

%



(70)

bps





Average selling price

















New vehicle



$

34,085





$

33,341





$

744





2

%

Used vehicle retail



20,736





20,361





375





2

%

Average gross profit per unit

















New vehicle:

















Luxury



$

3,413





$

3,701





$

(288)





(8)

%

Mid-line import



1,262





1,400





(138)





(10)

%

Mid-line domestic



2,087





2,066





21





1

%

     Total new vehicle



1,911





2,052





(141)





(7)

%

Used vehicle



1,672





1,747





(75)





(4)

%

Finance and insurance, net



1,382





1,331





51





4

%

Front end yield (1)



3,187





3,247





(60)





(2)

%

Gross margin

















New vehicle:

















Luxury



6.7

%



7.3

%



(60)

bps





Mid-line import



4.7

%



5.3

%



(60)

bps





Mid-line domestic



5.8

%



6.2

%



(40

bps





     Total new vehicle



5.6

%



6.2

%



(60))

bps





Used vehicle retail



8.1

%



8.6

%



(50)

bps





Parts and service



62.6

%



61.9

%



70

bps





Gross profit margin



16.2

%



16.6

%



(40)

bps





SG&A metrics

















Rent expense



$

23.5





$

23.2





$

0.3





1

%

SG&A, excluding rent expense as a percent of gross profit



65.3

%



66.1

%



(80)

bps





Total SG&A as a percentage of gross profit



68.3

%



69.3

%



(100)

bps





Operating metrics

















Income from operations as a percentage of revenue



4.7

%



4.6

%



10

bps





Income from operations as a percentage of gross profit



29.0

%



28.0

%



100

bps





Revenue mix

















New vehicle



55.0

%



54.5

%









Used vehicle retail



26.5

%



26.6

%









Used vehicle wholesale



3.3

%



3.6

%









Parts and service



11.2

%



11.4

%









Finance and insurance



4.0

%



3.9

%









     Total revenue



100.0

%



100.0

%









Gross profit mix

















New vehicle



19.1

%



20.3

%









Used vehicle retail



13.1

%



13.7

%









Used vehicle wholesale



(0.4)

%



(0.1)

%









Parts and service



43.5

%



42.5

%









Finance and insurance



24.7

%



23.6

%









     Total gross profit



100.0

%



100.0

%









_____________________________
(1) Front end yield is calculated as gross profit from new vehicles, used retail vehicles and finance and insurance (net), divided by combined new and used retail sales.

 

ASBURY AUTOMOTIVE GROUP, INC.



SAME STORE OPERATING HIGHLIGHTS  (In millions)



(Unaudited)











For the Nine Months Ended
September 30,



Increase
(Decrease)



%
Change





2015



2014





Revenue

















New vehicle:

















Luxury



$

928.1





$

847.7





$

80.4





9

%

Mid-line import



1,225.7





1,151





74.7





6

%

Mid-line domestic



373.6





337.2





36.4





11

%

     Total new vehicle



2,527.4





2,335.9





191.5





8

%

Used Vehicle:

















Retail



1,204.0





1,138.1





65.9





6

%

Wholesale



151.4





156.4





(5.0)





(3)

%

     Total used vehicle



1,355.4





1,294.5





60.9





5

%

Parts and service



525.9





482.7





43.2





9

%

Finance and insurance



181.3





168.5





12.8





8

%

Total revenue



$

4,590.0





$

4,281.6





$

308.4





7

%



















Gross profit

















New vehicle:

















Luxury



$

62.5





$

61.8





$

0.7





1

%

Mid-line import



57.1





60.9





(3.8)





(6)

%

Mid-line domestic



22.0





20.9





1.1





5

%

     Total new vehicle



141.6





143.6





(2.0)





(1)

%

Used Vehicle:

















Retail



98.1





98.0





0.1





%

Wholesale



(2.8)





(0.9)





(1.9)





211

%

     Total used vehicle



95.3





97.1





(1.8)





(2)

%

Parts and service:

















Customer pay



179.3





170.6





8.7





5

%

Reconditioning and preparation



85.5





75.5





10.0





13

%

Warranty



49.4





38.6





10.8





28

%

Wholesale parts



15.2





15.0





0.2





1

%

     Total parts and service



329.4





299.7





29.7





10

%

Finance and insurance



181.3





168.5





12.8





8

%

Total gross profit



$

747.6





$

708.9





$

38.7





5

%



















SG&A expense



$

512.6





$

490.9





$

21.7





4

%

SG&A expense as a percentage of gross profit



68.6

%



69.2

%



(60)

bps





_____________________________
Same store amounts consist of information from dealerships which we operated for all of the months in both comparative periods

 

 

ASBURY AUTOMOTIVE GROUP, INC.



SAME STORE OPERATING HIGHLIGHTS  (Continued)



(Unaudited)











For the Nine Months Ended
September 30,



Increase
(Decrease)



%
Change





2015



2014





Unit sales

















New vehicle:

















Luxury



18,254





16,667





1,587





10

%

Mid-line import



45,604





43,575





2,029





5

%

Mid-line domestic



10,500





10,115





385





4

%

     Total new vehicle



74,358





70,357





4,001





6

%

Used vehicle retail



57,977





56,053





1,924





3

%

Used to new ratio



78.0

%



79.7

%



(170)

bps























Average selling price

















New vehicle



$

33,990





$

33,201





$

789





2

%

Used vehicle retail



20,767





20,304





463





2

%



















Average gross profit per unit

















New vehicle:

















Luxury



$

3,424





$

3,708





$

(284)





(8)

%

Mid-line import



1,252





1,398





(146)





(10)

%

Mid-line domestic



2,095





2,066





29





1

%

     Total new vehicle



1,904





2,041





(137)





(7)

%

Used vehicle



1,692





1,748





(56)





(3)

%

Finance and insurance, net



1,370





1,333





37





3

%

Front end yield (1)



3,181





3,244





(63)





(2)

%



















Gross margin

















New vehicle:

















Luxury



6.7

%



7.3

%



(60)

bps





Mid-line import



4.7

%



5.3

%



(60)

bps





Mid-line domestic



5.9

%



6.2

%



(30)

bps





     Total new vehicle



5.6

%



6.1

%



(50)

bps





Used vehicle retail



8.1

%



8.6

%



(50)

bps





Parts and service



62.6

%



62.1

%



50

bps





Gross profit margin



16.3

%



16.6

%



(30)

bps





_____________________________
Same store amounts consist of information from dealerships which we operated for all of the months in both comparative periods

(1) Front end yield is calculated as gross profit from new vehicles, used retail vehicles and finance and insurance (net), divided by combined new and used retail sales.

 

 

ASBURY AUTOMOTIVE GROUP, INC.



Additional Disclosures (In millions)



(Unaudited)











September 30,
2015



December 31,
2014



Increase

(Decrease)



% Change

SELECTED BALANCE SHEET DATA

















Cash and cash equivalents



$

3.9





$

2.9





$

1.0





34

%

New vehicle inventory



696.4





699.5





(3.1)





%

Used vehicle inventory



147.1





141.7





5.4





4

%

Parts inventory



44.1





44.8





(0.7)





(2)

%

Total current assets



1,282.0





1,276.7





5.3





%

Floor plan notes payable



837.9





766.8





71.1





9

%

Total current liabilities



1,146.6





1,041.1





105.5





10

%



















CAPITALIZATION:

















Long-term debt (including current portion)



$

761.7





$

707.4





$

54.3





8

%

Shareholders' equity



314.5





444.9





(130.4)





(29)

%

Total



$

1,076.2





$

1,152.3





$

(76.1)





(7)

%

 

 



September 30,
2015



December 31,
2014



September 30,
2014

DAYS SUPPLY











New vehicle inventory

72





63





74



Used vehicle inventory

36





35





34



_____________________________
Days supply of inventory is calculated based on new and used inventory levels at the end of each reporting period and a 30-day historical cost of sales

 

Brand Mix - New Vehicle Revenue by Brand-







For the Nine Months
Ended September 30,





2015



2014

Luxury:









BMW



8

%



9

%

Mercedes-Benz



7

%



7

%

Lexus



6

%



7

%

Acura



5

%



5

%

Infiniti



3

%



4

%

Other luxury



6

%



5

%

Total luxury



35

%



37

%

Mid-Line Imports:









Honda



16

%



18

%

Nissan



12

%



12

%

Toyota



12

%



13

%

Other imports



6

%



6

%

Total imports



46

%



49

%

Mid-Line Domestic:









Ford



11

%



7

%

Dodge



3

%



2

%

Chevrolet



3

%



2

%

Other domestics



2

%



3

%

Total domestic



19

%



14

%

Total New Vehicle Revenue



100

%



100

%

 

ASBURY AUTOMOTIVE GROUP INC.
Supplemental Disclosures
(Unaudited)

Non-GAAP Financial Disclosure and Reconciliation

In addition to evaluating the financial condition and results of our operations in accordance with GAAP, from time to time management evaluates and analyzes results and any impact on the Company of strategic decisions and actions relating to, among other things, cost reduction, growth, and profitability improvement initiatives, and other events outside of normal, or "core," business and operations, by considering certain alternative financial measures not prepared in accordance with GAAP. These measures include "Adjusted income from continuing operations," "Adjusted diluted earnings per share ("EPS") from continuing operations," "Adjusted EBITDA," "Adjusted leverage ratio," and "Adjusted SG&A expense."  Non-GAAP measures do not have definitions under GAAP and may be defined differently by and not be comparable to similarly titled measures used by other companies. As a result, any non-GAAP financial measures considered and evaluated by management are reviewed in conjunction with a review of the most directly comparable measures calculated in accordance with GAAP. Management cautions investors not to place undue reliance on such non-GAAP measures, but also to consider them with the most directly comparable GAAP measures. In their evaluation of results from time to time, management excludes items that do not arise directly from core operations, or are otherwise of an unusual or non-recurring nature. Because these non-core, unusual or non-recurring charges and gains materially affect Asbury's financial condition or results in the specific period in which they are recognized, management also evaluates, and makes resource allocation and performance evaluation decisions based on, the related non-GAAP measures excluding such items.  In addition to using such non-GAAP measures to evaluate results in a specific period, management believes that such measures may provide more complete and consistent comparisons of operational performance on a period-over-period historical basis and a better indication of expected future trends. Management discloses these non-GAAP measures, and the related reconciliations, because it believes investors use these metrics in evaluating longer-term period-over-period performance, and to allow investors to better understand and evaluate the information used by management to assess operating performance.

 

 





For the Twelve Months Ended





September 30, 2015



June 30, 2015





(Dollars in millions)

Adjusted leverage ratio:









Long-term debt (including current portion)



$

761.7





$

770.9













Calculation of earnings before interest, taxes, depreciation and amortization ("EBITDA"):









Income from continuing operations



$

140.2





$

121.4













Add:









Depreciation and amortization



28.9





28.2



Income tax expense



87.1





76.8



Swap and other interest expense



44.6





43.0



Earnings before interest, taxes, depreciation and amortization ("EBITDA")



$

300.8





$

269.4













Non-core items - expense:









Gain on divestitures



$

(21.4)





$



Loss on extinguishment of long-term debt



31.9





31.9



  Total non-core items



10.5





31.9













Adjusted EBITDA



$

311.3





$

301.3













Adjusted leverage ratio



2.4





2.6



 

The non-core operating items shown in the table below consist of expenses related to real estate transactions.





For the Three Months Ended
September 30,





2015



2014





(In millions, except per share data)

Adjusted income from continuing operations:









Net income



$

51.1





$

32.5



Discontinued operations, net of tax



0.1





(0.1)



Income from continuing operations



51.2





32.4













Non-core items - income:









Gain on divestitures (net of $8.3 million of tax)



(13.1)







Income tax benefit



(0.8)







Total non-core items



(13.9)







Adjusted income from continuing operations



$

37.3





$

32.4













Adjusted diluted earnings per share (EPS) from continuing operations:









Net income



$

1.96





$

1.08



Discontinued operations, net of tax









Income from continuing operations



$

1.96





$

1.08













Total non-core items



(0.53)







Adjusted diluted EPS from continuing operations



$

1.43





$

1.08













Weighted average common shares outstanding - diluted



26.1





30.0



 

 

 





For the Nine Months Ended
September 30,





2015



2014





(In millions, except per share data)

Adjusted income from continuing operations:









Net income



$

128.1





$

99.8



Discontinued operations, net of tax



0.1





0.3



Income from continuing operations



128.2





100.1













Non-core items - income:









Gain on divestitures (net of $8.3 million of tax)



(13.1)







Income tax benefit



(0.8)







Total non-core items



(13.9)







Adjusted income from continuing operations



$

114.3





$

100.1













Adjusted diluted earnings per share (EPS) from continuing operations:









Net income



$

4.76





$

3.28



Discontinued operations, net of tax



0.01





0.01



Income from continuing operations



$

4.77





$

3.29













Total non-core items



(0.52)







Adjusted diluted EPS from continuing operations



$

4.25





$

3.29













Weighted average common shares outstanding - diluted



26.9





30.4



 

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/asbury-automotive-group-announces-record-2015-third-quarter-financial-results-300163580.html

SOURCE Asbury Automotive Group, Inc.

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