Market Overview

Asbury Automotive Group Announces Second Quarter 2016 Earnings

Share:

Record second quarter EPS of $1.65 per diluted share compared to $1.52 per diluted share in the prior year quarter

DULUTH, Ga., July 26, 2016 /PRNewswire/ -- Asbury Automotive Group, Inc. (NYSE: ABG), one of the largest automotive retail and service companies in the U.S., today reported net income for the second quarter 2016 of $36.7 million, or $1.65 per diluted share, compared to $41.1 million, or $1.52 per diluted share in the prior year quarter, a 9% increase per diluted share. Total revenue for the second quarter was $1.6 billion, down 4% from the prior year period principally attributable to strategic divestitures during the second half of 2015; total revenue on a same store basis was down 1% from the prior year period.

Second Quarter 2016 Operational Summary (compared to the prior year period on a same store basis unless otherwise stated):

  • Total revenues decreased 1%; gross profit up 1%
  • New vehicle revenue down 1%; gross profit down 5%
  • Used vehicle retail revenue down 4%; gross profit up 1%
  • Finance and insurance revenue per vehicle up 3% to $1,436
  • Parts and service revenue up 6%; gross profit up 4%
  • Parts and service customer pay gross profit up 8%
  • SG&A expense as a percentage of gross profit was up 140 basis points to 68.3%
  • Total company income from operations as a percentage of revenue was 4.8%

Strategic Highlights:

  • Repurchased $60 million of common stock in Q2 2016
  • Opened a new Q auto store in the greater Tampa, FL area

"Despite a challenging retail environment, our improved used margins, strong parts and service customer pay performance, and capital deployment enabled us to deliver 9% EPS growth," said Craig Monaghan, Asbury's President and Chief Executive Officer.

"We continue to grow our front end yield, which is up approximately $100 per vehicle from the low in the second quarter of 2015," said Asbury's Executive Vice President and Chief Operating Officer, David Hult. "This was a direct result of our team's strong performance, increasing used vehicle margins and continuing gains in F&I."

For the six-month period ended June 30, 2016, the Company reported net income of $67.7 million, or $2.91 per diluted share, compared to net income of $77.0 million, or $2.82 per diluted share in the prior year period.

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 or www.ccbn.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 (719) 325-2432 (domestic), or (888) 572-7025 (international); passcode - 5689441.  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 - 5689441.

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 82 dealership locations, encompassing 99 new vehicle franchises for the sale and servicing of 28 domestic and foreign brands as of June 30, 2016.  In addition, we owned and operated three stand-alone used vehicle stores under the "Q auto" brand name in Florida.   We also operated 25 collision repair centers in our local markets.  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, 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, 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 U.S. 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
June 30,


Increase
(Decrease)


%
Change


2016


2015



REVENUE:








New vehicle

$

897.0



$

926.2



$

(29.2)



(3)

%

Used vehicle:








Retail

418.3



451.8



(33.5)



(7)

%

Wholesale

51.9



55.8



(3.9)



(7)

%

     Total used vehicle

470.2



507.6



(37.4)



(7)

%

Parts and service

195.3



188.2



7.1



4

%

Finance and insurance, net

64.9



67.6



(2.7)



(4)

%

TOTAL REVENUE

1,627.4



1,689.6



(62.2)



(4)

%

GROSS PROFIT:








New vehicle

47.5



50.6



(3.1)



(6)

%

Used vehicle:








Retail

34.8



35.0



(0.2)



(1)

%

Wholesale

(0.6)



(1.3)



0.7



54

%

     Total used vehicle

34.2



33.7



0.5



1

%

Parts and service

121.0



119.4



1.6



1

%

Finance and insurance, net

64.9



67.6



(2.7)



(4)

%

TOTAL GROSS PROFIT

267.6



271.3



(3.7)



(1)

%

OPERATING EXPENSES (INCOME):








Selling, general and administrative

182.3



181.9



0.4



%

Depreciation and amortization

7.7



7.2



0.5



7

%

Other operating income, net

(0.5)





(0.5)



%

INCOME FROM OPERATIONS

78.1



82.2



(4.1)



(5)%


OTHER EXPENSES:








Floor plan interest expense

5.0



4.0



1.0



25

%

Other interest expense, net

13.4



10.5



2.9



28

%

Swap interest expense

0.8



0.5



0.3



60

%

Total other expenses, net

19.2



15.0



4.2



28

%

INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES

58.9



67.2



(8.3)



(12)

%

Income tax expense

22.3



26.1



(3.8)



(15)

%

INCOME FROM CONTINUING OPERATIONS

36.6



41.1



(4.5)



(11)

%

Discontinued operations, net of tax

0.1





0.1



%

NET INCOME

$

36.7



$

41.1



$

(4.4)



(11)

%

EARNINGS PER COMMON SHARE:








Basic—








Continuing operations

$

1.66



$

1.53



$

0.13



8

%

Discontinued operations







%

Net income

$

1.66



$

1.53



$

0.13



8

%

Diluted—








Continuing operations

$

1.65



$

1.52



$

0.13



9

%

Discontinued operations







%

Net income

$

1.65



$

1.52



$

0.13



9

%

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:








Basic

22.1



26.8



(4.7)



(18)

%

Restricted stock



0.1



(0.1)



(100)

%

Performance share units

0.1



0.1





%

Diluted

22.2



27.0



(4.8)



(18)

%

______________________________
NMNot Meaningful

 


ASBURY AUTOMOTIVE GROUP, INC.
KEY OPERATING HIGHLIGHTS  (In millions, except per unit data)
(Unaudited)



For the Three Months Ended
June 30,


Increase
(Decrease)


%
Change


2016


2015



Unit sales








New vehicle:








Luxury

5,782



6,366



(584)



(9)

%

Import

14,808



16,574



(1,766)



(11)

%

Domestic

5,175



4,459



716



16

%

     Total new vehicle

25,765



27,399



(1,634)



(6)

%

Used vehicle retail

19,612



21,391



(1,779)



(8)

%

Used to new ratio

76.1

%


78.1

%


(200)

bps



Average selling price








New vehicle

$

34,815



$

33,804



$

1,011



3

%

Used vehicle retail

21,329



21,121



208



1

%

Average gross profit per unit








New vehicle:








Luxury

$

3,615



$

3,346



$

269



8

%

Import

1,189



1,237



(48)



(4)

%

Domestic

1,739



1,974



(235)



(12)

%

     Total new vehicle

1,844



1,847



(3)



%

Used vehicle

1,774



1,636



138



8

%

Finance and insurance, net

1,430



1,386



44



3

%

Front end yield (1)

3,244



3,140



104



3

%

Gross margin








New vehicle:








Luxury

6.9

%


6.6

%


30

bps



Import

4.3

%


4.6

%


(30)

bps



Domestic

4.8

%


5.6

%


(80)

bps



     Total new vehicle

5.3

%


5.5

%


(20)

bps



Used vehicle retail

8.3

%


7.7

%


60

bps



Parts and service

62.0

%


63.4

%


(140)

bps



Gross profit margin

16.4

%


16.1

%


30

bps



SG&A metrics








Rent expense

$

7.6



$

7.8



$

(0.2)



(3)

%

Total SG&A as a percentage of gross profit

68.1

%


67.0

%


110

bps



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

65.3

%


64.2

%


110

bps



Operating metrics








Income from operations as a percentage of revenue

4.8

%


4.9

%


(10)

bps



Income from operations as a percentage of gross profit

29.2

%


30.3

%


(110)

bps



Revenue mix








New vehicle

55.1

%


54.8

%





Used vehicle retail

25.7

%


26.8

%





Used vehicle wholesale

3.2

%


3.3

%





Parts and service

12.0

%


11.1

%





Finance and insurance

4.0

%


4.0

%





     Total revenue

100.0

%


100.0

%





Gross profit mix








New vehicle

17.8

%


18.7

%





Used vehicle retail

12.9

%


12.9

%





Used vehicle wholesale

(0.2)

%


(0.5)

%





Parts and service

45.2

%


44.0

%





Finance and insurance

24.3

%


24.9

%





     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 unit sales.

 

ASBURY AUTOMOTIVE GROUP, INC.
SAME STORE OPERATING HIGHLIGHTS  (In millions)
(Unaudited)



For the Three Months Ended
June 30,


Increase
(Decrease)


%
Change


2016


2015



Revenue








New vehicle:








Luxury

$

300.9



$

312.8



$

(11.9)



(4)

%

Import

403.0



421.2



(18.2)



(4)

%

Domestic

175.1



157.4



17.7



11

%

     Total new vehicle

879.0



891.4



(12.4)



(1)

%

Used Vehicle:








Retail

411.8



429.3



(17.5)



(4)

%

Wholesale

51.4



52.6



(1.2)



(2)

%

     Total used vehicle

463.2



481.9



(18.7)



(4)

%

Parts and service

192.2



180.6



11.6



6

%

Finance and insurance

63.9



65.0



(1.1)



(2)

%

Total revenue

$

1,598.3



$

1,618.9



$

(20.6)



(1)

%









Gross profit








New vehicle:








Luxury

$

20.9



$

20.8



$

0.1



%

Import

17.4



19.2



(1.8)



(9)

%

Domestic

8.1



8.8



(0.7)



(8)

%

     Total new vehicle

46.4



48.8



(2.4)



(5)

%

Used Vehicle:








Retail

34.1



33.6



0.5



1

%

Wholesale

(0.6)



(1.2)



0.6



50

%

     Total used vehicle

33.5



32.4



1.1



3

%

Parts and service:








Customer pay

67.6



62.7



4.9



8

%

Warranty

16.7



16.9



(0.2)



(1)

%

Wholesale parts

5.1



5.1





%

     Parts and service, excluding reconditioning and preparation

89.4



84.7



4.7



6

%

Reconditioning and preparation

29.8



29.7



0.1



%

Total parts and service

119.2



114.4



4.8



4

%

Finance and insurance

63.9



65.0



(1.1)



(2)

%

Total gross profit

$

263.0



$

260.6



$

2.4



1

%









SG&A expense

$

179.6



$

174.3



$

5.3



3

%

SG&A expense as a percentage of gross profit

68.3

%


66.9

%


140

bps



_____________________________

Same store amounts consist of information from dealerships for identical months in each comparative period, commencing with the first month we owned the dealership. Additionally, amounts related to divested dealerships are excluded from each comparative period.

 


ASBURY AUTOMOTIVE GROUP, INC.
SAME STORE OPERATING HIGHLIGHTS  (Continued)
(Unaudited)



For the Three Months Ended
June 30,


Increase
(Decrease)


%
Change


2016


2015



Unit sales








New vehicle:








Luxury

5,782



6,179



(397)



(6)

%

Import

14,678



15,680



(1,002)



(6)

%

Domestic

4,763



4,459



304



7

%

     Total new vehicle

25,223



26,318



(1,095)



(4)

%

Used vehicle retail

19,272



20,301



(1,029)



(5)

%

Used to new ratio

76.4

%


77.1

%


(70)

bps











Average selling price








New vehicle

$

34,849



$

33,870



$

979



3

%

Used vehicle retail

21,368



21,147



221



1

%









Average gross profit per unit








New vehicle:








Luxury

$

3,615



$

3,366



$

249



7

%

Import

1,185



1,224



(39)



(3)

%

Domestic

1,701



1,974



(273)



(14)

%

     Total new vehicle

1,840



1,854



(14)



(1)

%

Used vehicle

1,769



1,655



114



7

%

Finance and insurance, net

1,436



1,394



42



3

%

Front end yield (1)

3,245



3,162



83



3

%









Gross margin








New vehicle:








Luxury

6.9

%


6.6

%


30

bps



Import

4.3

%


4.6

%


(30)

 bps



Domestic

4.6

%


5.6

%


(100)

 bps



     Total new vehicle

5.3

%


5.5

%


(20)

bps



Used vehicle retail

8.3

%


7.8

%


50

bps



Parts and service:








Parts and service, excluding reconditioning and preparation

46.5

%


46.9

%


(40)

 bps



Parts and service, including reconditioning and preparation

62.0

%


63.3

%


(130)

bps



Gross profit margin

14.6

%


14.3

%


30

bps



_____________________________

Same store amounts consist of information from dealerships for identical months in each comparative period, commencing with the first month we owned the dealership. Additionally, amounts related to divested dealerships are excluded from each comparative period.


(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 unit sales.

 

ASBURY AUTOMOTIVE GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
(Unaudited)



For the Six Months Ended
June 30,


Increase
(Decrease)


%
Change


2016


2015



REVENUE:








New vehicle

$

1,735.4



$

1,756.7



$

(21.3)



(1)

%

Used vehicle:








Retail

831.4



871.0



(39.6)



(5)

%

Wholesale

99.7



110.0



(10.3)



(9)

%

     Total used vehicle

931.1



981.0



(49.9)



(5)

%

Parts and service

384.5



364.9



19.6



5

%

Finance and insurance, net

127.2



128.8



(1.6)



(1)

%

TOTAL REVENUE

3,178.2



3,231.4



(53.2)



(2)

%

GROSS PROFIT:








New vehicle

92.2



100.2



(8.0)



(8)

%

Used vehicle:








Retail

69.5



70.4



(0.9)



(1)

%

Wholesale

0.5



(1.4)



1.9



NM

     Total used vehicle

70.0



69.0



1.0



1

%

Parts and service

239.0



229.7



9.3



4

%

Finance and insurance, net

127.2



128.8



(1.6)



(1)

%

TOTAL GROSS PROFIT

528.4



527.7



0.7



%

OPERATING EXPENSES:








Selling, general and administrative

363.5



357.6



5.9



2

%

Depreciation and amortization

15.2



14.5



0.7



5

%

Other operating expense, net

2.7



0.3



2.4



NM

INCOME FROM OPERATIONS

147.0



155.3



(8.3)



(5)

%

OTHER EXPENSES:








Floor plan interest expense

9.4



7.9



1.5



19

%

Other interest expense, net

26.8



20.8



6.0



29

%

Swap interest expense

1.6



1.0



0.6



60

%

Total other expenses, net

37.8



29.7



8.1



27

%

INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES

109.2



125.6



(16.4)



(13)

%

Income tax expense

41.5



48.6



(7.1)



(15)

%

INCOME FROM CONTINUING OPERATIONS

67.7



77.0



(9.3)



(12)

%

Discontinued operations, net of tax







%

NET INCOME

$

67.7



$

77.0



$

(9.3)



(12)

%

EARNINGS PER COMMON SHARE:








Basic—








Continuing operations

$

2.92



$

2.84



$

0.08



3

%

Discontinued operations







%

Net income

$

2.92



$

2.84



$

0.08



3

%

Diluted—








Continuing operations

$

2.91



$

2.82



$

0.09



3

%

Discontinued operations







%

Net income

$

2.91



$

2.82



$

0.09



3

%

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:








Basic

23.2



27.1



(3.9)



(14)

%

Restricted stock



0.1



(0.1)



(100)

%

Performance share units

0.1



0.1





%

Diluted

23.3



27.3



(4.0)



(15)

%

______________________________

NMNot Meaningful

 

ASBURY AUTOMOTIVE GROUP, INC.
KEY OPERATING HIGHLIGHTS  (In millions, except per unit data)
(Unaudited)



For the Six Months Ended
June 30,


Increase
(Decrease)


%
Change


2016


2015



Unit sales








New vehicle:








Luxury

11,408



12,251



(843)



(7)

%

Import

28,292



30,551



(2,259)



(7)

%

Domestic

10,094



8,655



1,439



17

%

     Total new vehicle

49,794



51,457



(1,663)



(3)

%

Used vehicle retail

39,348



41,858



(2,510)



(6)

%

Used to new ratio

79.0

%


81.3

%


(230)

 bps



Average selling price








New vehicle

$

34,852



$

34,139



$

713



2

%

Used vehicle retail

21,129



20,808



321



2

%

Average gross profit per unit








New vehicle:








Luxury

$

3,559



$

3,526



$

33



1

%

Import

1,223



1,273



(50)



(4)

%

Domestic

1,684



2,091



(407)



(19)

%

     Total new vehicle

1,852



1,947



(95)



(5)

%

Used vehicle

1,766



1,682



84



5

%

Finance and insurance, net

1,427



1,380



47



3

%

Front end yield (1)

3,241



3,208



33



1

%

Gross margin








New vehicle:








Luxury

6.9

%


6.9

%


bps



Import

4.4

%


4.7

%


(30)

bps



Domestic

4.7

%


5.9

%


(120)

bps



     Total new vehicle

5.3

%


5.7

%


(40)

bps



Used vehicle retail

8.4

%


8.1

%


30

bps



Parts and service

62.2

%


62.9

%


(70)

bps



Gross profit margin

16.6

%


16.3

%


30

bps



SG&A metrics








Rent expense

$

15.4



$

15.5



$

(0.1)



(1)

%

Total SG&A as a percentage of gross profit

68.8

%


67.8

%


100

bps



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

65.9

%


64.8

%


110

bps



Operating metrics








Income from operations as a percentage of revenue

4.6

%


4.8

%


(20)

 bps



Income from operations as a percentage of gross profit

27.8

%


29.4

%


(160)

 bps



Adjusted income from operations as a percentage of revenue

4.7

%


4.8

%


(10)

bps



Adjusted income from operations as a percentage of gross profit

28.5

%


29.4

%


(90)

bps



Revenue mix








New vehicle

54.6

%


54.4

%





Used vehicle retail

26.2

%


26.9

%





Used vehicle wholesale

3.1

%


3.4

%





Parts and service

12.1

%


11.3

%





Finance and insurance

4.0

%


4.0

%





     Total revenue

100.0

%


100.0

%





Gross profit mix








New vehicle

17.4

%


19.0

%





Used vehicle retail

13.2

%


13.4

%





Used vehicle wholesale

0.1

%


(0.3)

%





Parts and service

45.2

%


43.5

%





Finance and insurance

24.1

%


24.4

%





     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 unit sales.

 

ASBURY AUTOMOTIVE GROUP, INC.
SAME STORE OPERATING HIGHLIGHTS  (In millions)
(Unaudited)



For the Six Months Ended
June 30,


Increase
(Decrease)


%
Change


2016


2015



Revenue








New vehicle:








Luxury

$

591.5



$

606.3



$

(14.8)



(2)

%

Import

765.5



780.6



(15.1)



(2)

%

Domestic

334.6



307.3



27.3



9

%

     Total new vehicle

1,691.6



1,694.2



(2.6)



%

Used Vehicle:








Retail

814.3



828.8



(14.5)



(2)%


Wholesale

98.3



104.7



(6.4)



(6)%


     Total used vehicle

912.6



933.5



(20.9)



(2)%


Parts and service

376.6



350.1



26.5



8

%

Finance and insurance

124.2



124.1



0.1



%

Total revenue

$

3,105.0



$

3,101.9



$

3.1



%









Gross profit








New vehicle:








Luxury

$

40.6



$

42.1



$

(1.5)



(4)

%

Import

34.0



37.0



(3.0)



(8)

%

Domestic

15.0



18.1



(3.1)



(17)

%

     Total new vehicle

89.6



97.2



(7.6)



(8)

%

Used Vehicle:








Retail

67.9



67.5



0.4



1

%

Wholesale

0.6



(1.2)



1.8



NM

     Total used vehicle

68.5



66.3



2.2



3

%

Parts and service:








Customer pay

132.4



121.0



11.4



9

%

Warranty

33.3



32.3



1.0



3

%

Wholesale parts

10.3



10.1



0.2



2

%

     Parts and service, excluding reconditioning and preparation

176.0



163.4



12.6



8

%

Reconditioning and preparation

58.1



57.1



1.0



2

%

Total parts and service

234.1



220.5



13.6



6

%

Finance and insurance

124.2



124.1



0.1



%

Total gross profit

$

516.4



$

508.1



$

8.3



2

%









SG&A expense

$

356.0



$

342.7



$

13.3



4

%

SG&A expense as a percentage of gross profit

68.9

%


67.4

%


150

bps



_____________________________

NMNot Meaningful

Same store amounts consist of information from dealerships for identical months in each comparative period, commencing with the first month we owned the dealership. Additionally, amounts related to divested dealerships are excluded from each comparative period.

 

ASBURY AUTOMOTIVE GROUP, INC.
SAME STORE OPERATING HIGHLIGHTS  (Continued)
(Unaudited)



For the Six Months Ended
June 30,


Increase
(Decrease)


%
Change


2016


2015



Unit sales








New vehicle:








Luxury

11,408



11,883



(475)



(4)

%

Import

27,822



28,995



(1,173)



(4)

%

Domestic

9,182



8,655



527



6

%

     Total new vehicle

48,412



49,533



(1,121)



(2)

%

Used vehicle retail

38,358



39,737



(1,379)



(3)

%

Used to new ratio

79.2

%


80.2

%


(100)

bps











Average selling price








New vehicle

$

34,942



$

34,203



$

739



2

%

Used vehicle retail

21,229



20,857



372



2

%









Average gross profit per unit








New vehicle:








Luxury

$

3,559



$

3,543



$

16



%

Import

1,222



1,276



(54)



(4)

%

Domestic

1,634



2,091



(457)



(22)

%

     Total new vehicle

1,851



1,962



(111)



(6)

%

Used vehicle

1,770



1,699



71



4

%

Finance and insurance, net

1,431



1,390



41



3

%

Front end yield (1)

3,247



3,235



12



%









Gross margin








New vehicle:








Luxury

6.9

%


6.9

%


bps



Import

4.4

%


4.7

%


(30)

bps



Domestic

4.5

%


5.9

%


(140)

 bps



     Total new vehicle

5.3

%


5.7

%


(40)

 bps



Used vehicle retail

8.3

%


8.1

%


20

bps



Parts and service:








Parts and service, excluding reconditioning and preparation

46.7

%


46.7

%


bps



Parts and service, including reconditioning and preparation

62.2

%


63.0

%


(80)

bps



Gross profit margin

16.6

%


16.4

%


20

bps



_____________________________

Same store amounts consist of information from dealerships for identical months in each comparative period, commencing with the first month we owned the dealership. Additionally, amounts related to divested dealerships are excluded from each comparative period.


(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 unit sales.

 

ASBURY AUTOMOTIVE GROUP, INC.
Additional Disclosures (In millions)
(Unaudited)



June 30,
2016


December 31,
2015


Increase

(Decrease)


% Change

SELECTED BALANCE SHEET DATA








Cash and cash equivalents

$

1.8



$

2.8



$

(1.0)



(36)

%

New vehicle inventory

786.0



739.2



46.8



6

%

Used vehicle inventory

159.0



134.1



24.9



19

%

Parts inventory

44.5



43.9



0.6



1

%

Total current assets

1,379.5



1,343.0



36.5



3

%

Floor plan notes payable

883.6



712.2



171.4



24

%

Total current liabilities

1,173.9



1,007.8



166.1



16

%









CAPITALIZATION:








Long-term debt (including current portion)

$

942.5



$

954.3



$

(11.8)



(1)

%

Shareholders' equity

219.6



314.5



(94.9)



(30)

%

Total

$

1,162.1



$

1,268.8



$

(106.7)



(8)

%

 


June 30,
2016


December 31,
2015

DAYS SUPPLY




New vehicle inventory

83



62


Used vehicle inventory

38



30


_____________________________

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 Six Months Ended June 30,


2016


2015

Luxury:




BMW

7

%


8

%

Mercedes-Benz

7

%


7

%

Lexus

7

%


6

%

Acura

4

%


5

%

Infiniti

3

%


3

%

Other luxury

6

%


7

%

Total luxury

34

%


36

%

Imports:




Honda

17

%


16

%

Nissan

10

%


13

%

Toyota

12

%


12

%

Other imports

6

%


6

%

Total imports

45

%


47

%

Domestic:




Ford

14

%


10

%

Dodge

2

%


3

%

Chevrolet

2

%


2

%

Other domestics

3

%


2

%

Total domestic

21

%


17

%

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 leverage ratio," "Adjusted income from operations," "Adjusted income from continuing operations," and "Adjusted diluted earnings per share ("EPS") from continuing operations." 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.

The following tables provide reconciliations for our non-GAAP metrics:


For the Twelve Months Ended


June 30, 2016


March 31, 2016


(Dollars in millions)

Adjusted leverage ratio:




Long-term debt (including current portion)

$

942.5



$

946.2






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




Income from continuing operations

$

160.1



$

164.6






Add:




Depreciation and amortization

30.1



29.7


Income tax expense

96.9



100.6


Swap and other interest expense

53.6



50.5


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

$

340.7



$

345.4






Non-core items - (income) expense:




Real estate-related charges

$

3.4



$

3.4


Gain on divestitures

(34.9)



(34.9)


  Total non-core items

(31.5)



(31.5)






Adjusted EBITDA

$

309.2



$

313.9






Adjusted leverage ratio

3.0



3.0


 


For the Six Months Ended June 30,


2016


2015


(In millions, except per share data)

Adjusted income from operations:




Income from operations

$

147.0



$

155.3


Real estate-related charges

3.4




Adjusted income from operations

$

150.4



$

155.3






Adjusted income from continuing operations:




Net income

$

67.7



$

77.0


Discontinued operations, net of tax




Income from continuing operations

67.7



77.0






Non-core items - (income) expense:




Real estate-related charges

3.4




Income tax benefit

(1.3)




Total non-core items

2.1




Adjusted income from continuing operations

$

69.8



$

77.0






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




Net income

$

2.91



$

2.82


Discontinued operations, net of tax




Income from continuing operations

$

2.91



$

2.82






Total non-core items

0.09




Adjusted diluted EPS from continuing operations

$

3.00



$

2.82






Weighted average common shares outstanding - diluted

23.3



27.3


                                                                                

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/asbury-automotive-group-announces-second-quarter-2016-earnings-300303665.html

SOURCE Asbury Automotive Group, Inc.

View Comments and Join the Discussion!