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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