DULUTH, Ga., April 27, 2017 /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
first quarter 2017 of $34.0 million,
or $1.61 per diluted share, compared
to $31.0 million, or $1.27 per diluted share in the prior year
quarter. It also reported adjusted income from continuing
operations (a non-GAAP measure) for the first quarter 2017 of
$33.4 million, or $1.58 per diluted share, compared to $33.2 million, or $1.36 per diluted share, in the prior year
quarter, a 16% increase in adjusted earnings per share.
Income from continuing operations for the first quarter 2017 was
adjusted for $0.9 million of pre-tax
legal settlement benefits, or $0.03
per diluted share. Income from continuing operations for the
first quarter 2016 was adjusted for $3.4
million of pre-tax real estate related charges, or
$0.09 per diluted share. See attached
reconciliation for reported adjustments related to both of these
periods.
Total revenue for the first quarter remained flat at
$1.6 billion compared to the prior
year period; total revenue on a same-store basis (a non-GAAP
measure) was up 3% from the prior year period.
First Quarter 2017 Operational Summary
Same store:
- Total revenues increased 3%; gross profit increased 3%
- New vehicle revenue increased 1%; gross profit decreased
9%
- Used vehicle retail revenue increased 4%; gross profit
decreased 2%
- Finance and insurance gross profit increased 9%
- Parts and service revenue increased 5%; gross profit increased
5%
All store:
- SG&A as a percentage of gross profit increased 10 basis
points to 69.6%
- Total company adjusted income from operations (a non-GAAP
measure) as a percentage of revenue was 4.6% down 10 basis points
from the prior year
- Adjusted EPS from continuing operations increased 16%
First Quarter Strategic Highlights:
- Acquired a Chevrolet franchise and an Isuzu truck franchise in
Indianapolis, Indiana
- Opened a Nissan add point in Cumming,
Georgia
- Repurchased $15 million of common
stock
"Despite flat new vehicle industry sales and continued margin
pressure, we are pleased to announce our 31st
consecutive quarter of adjusted EPS growth," said Craig Monaghan, Asbury's President and Chief
Executive Officer.
"Our ability to drive incremental used sales, enhance F&I
PVR, and grow parts and service enabled us to deliver same-store
gross profit growth of 3% and industry leading operating margins of
4.6%," said Asbury's Executive Vice President and Chief Operating
Officer, David Hult.
The conference call will be simulcast live on the Internet and
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 (877) 852-6579 (domestic), or (719) 325-4929
(international); passcode - 1223221. 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 -
1223221.
About Asbury Automotive Group, Inc.
Asbury Automotive Group, Inc. ("Asbury"), a Fortune 500 company
headquartered in Duluth, GA, is
one of the largest automotive retailers in the U.S. Asbury
currently operates 80 dealerships, consisting of 96 franchises,
representing 29 domestic and foreign brands of vehicles.
Asbury also operates 24 collision repair centers and 2 stand-alone
used vehicle stores. 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
March 31,
|
|
|
2017
|
|
2016
|
|
Increase
(Decrease)
|
|
%
Change
|
|
REVENUE:
|
|
|
|
|
|
|
|
|
New
vehicle
|
$
|
832.5
|
|
$
|
838.4
|
|
$
|
(5.9)
|
|
(1)
|
%
|
|
Used
vehicle:
|
|
|
|
|
|
|
|
|
Retail
|
415.4
|
|
413.1
|
|
2.3
|
|
1
|
%
|
|
Wholesale
|
46.4
|
|
47.8
|
|
(1.4)
|
|
(3)
|
%
|
|
Total used
vehicle
|
461.8
|
|
460.9
|
|
0.9
|
|
—
|
%
|
|
Parts and
service
|
191.5
|
|
189.2
|
|
2.3
|
|
1
|
%
|
|
Finance and
insurance, net
|
65.9
|
|
62.3
|
|
3.6
|
|
6
|
%
|
|
TOTAL
REVENUE
|
1,551.7
|
|
1,550.8
|
|
0.9
|
|
—
|
%
|
|
GROSS
PROFIT:
|
|
|
|
|
|
|
|
|
New
vehicle
|
40.4
|
|
44.7
|
|
(4.3)
|
|
(10)
|
%
|
|
Used
vehicle:
|
|
|
|
|
|
|
|
|
Retail
|
33.0
|
|
34.7
|
|
(1.7)
|
|
(5)
|
%
|
|
Wholesale
|
0.9
|
|
1.1
|
|
(0.2)
|
|
18
|
%
|
|
Total used
vehicle
|
33.9
|
|
35.8
|
|
(1.9)
|
|
(5)
|
%
|
|
Parts and
service
|
119.9
|
|
118.0
|
|
1.9
|
|
2
|
%
|
|
Finance and
insurance, net
|
65.9
|
|
62.3
|
|
3.6
|
|
6
|
%
|
|
TOTAL GROSS
PROFIT
|
260.1
|
|
260.8
|
|
(0.7)
|
|
—
|
%
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
181.1
|
|
181.2
|
|
(0.1)
|
|
—
|
%
|
|
Depreciation and
amortization
|
7.9
|
|
7.5
|
|
0.4
|
|
5
|
%
|
|
Other operating
(income) expense, net
|
(1.2)
|
|
3.2
|
|
(4.4)
|
|
(138)
|
%
|
|
INCOME FROM
OPERATIONS
|
72.3
|
|
68.9
|
|
3.4
|
|
5
|
%
|
|
OTHER
EXPENSES:
|
|
|
|
|
|
|
|
|
Floor plan interest
expense
|
5.3
|
|
4.4
|
|
0.9
|
|
20
|
%
|
|
Other interest
expense, net
|
13.3
|
|
13.4
|
|
(0.1)
|
|
(1)
|
%
|
|
Swap interest
expense
|
0.6
|
|
0.8
|
|
(0.2)
|
|
(25)
|
%
|
|
Total other expenses,
net
|
19.2
|
|
18.6
|
|
0.6
|
|
3
|
%
|
|
INCOME FROM
CONTINUING OPERATIONS
BEFORE INCOME TAXES
|
53.1
|
|
50.3
|
|
2.8
|
|
6
|
%
|
|
Income tax
expense
|
19.1
|
|
19.2
|
|
(0.1)
|
|
(1)
|
%
|
|
INCOME FROM
CONTINUING OPERATIONS
|
34.0
|
|
31.1
|
|
2.9
|
|
9
|
%
|
|
Discontinued
operations, net of tax
|
—
|
|
(0.1)
|
|
0.1
|
|
100
|
%
|
|
NET INCOME
|
$
|
34.0
|
|
$
|
31.0
|
|
$
|
3.0
|
|
10
|
%
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
Basic—
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
1.62
|
|
$
|
1.28
|
|
$
|
0.34
|
|
27
|
%
|
|
Discontinued
operations
|
—
|
|
—
|
|
—
|
|
—
|
%
|
|
Net income
|
$
|
1.62
|
|
$
|
1.28
|
|
$
|
0.34
|
|
27
|
%
|
|
Diluted—
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
1.61
|
|
$
|
1.27
|
|
$
|
0.34
|
|
27
|
%
|
|
Discontinued
operations
|
—
|
|
—
|
|
—
|
|
—
|
%
|
|
Net income
|
$
|
1.61
|
|
$
|
1.27
|
|
$
|
0.34
|
|
27
|
%
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
Basic
|
21.0
|
|
24.3
|
|
(3.3)
|
|
(14)
|
%
|
|
Restricted
stock
|
—
|
|
—
|
|
—
|
|
—
|
%
|
|
Performance share
units
|
0.1
|
|
0.1
|
|
—
|
|
—
|
%
|
|
Diluted
|
21.1
|
|
24.4
|
|
(3.3)
|
|
(14)
|
%
|
|
ASBURY AUTOMOTIVE
GROUP, INC.
KEY OPERATING
HIGHLIGHTS (In millions, except per unit data)
(Unaudited)
|
|
|
|
|
|
|
|
For the Three
Months Ended
March 31,
|
|
Increase
(Decrease)
|
|
%
Change
|
|
2017
|
|
2016
|
|
|
|
Unit
sales
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
5,114
|
|
|
5,626
|
|
|
(512)
|
|
|
(9)
|
%
|
|
Import
|
13,674
|
|
|
13,484
|
|
|
190
|
|
|
1
|
%
|
|
Domestic
|
4,678
|
|
|
4,919
|
|
|
(241)
|
|
|
(5)
|
%
|
|
Total new vehicle
|
23,466
|
|
|
24,029
|
|
|
(563)
|
|
|
(2)
|
%
|
|
Used vehicle
retail
|
20,067
|
|
|
19,736
|
|
|
331
|
|
|
2
|
%
|
|
Used to new
ratio
|
85.5
|
%
|
|
82.1
|
%
|
|
340
|
bps
|
|
|
|
Average selling
price
|
|
|
|
|
|
|
|
|
New
vehicle
|
$
|
35,477
|
|
|
$
|
34,891
|
|
|
$
|
586
|
|
|
2
|
%
|
|
Used vehicle
retail
|
20,701
|
|
|
20,931
|
|
|
(230)
|
|
|
(1)
|
%
|
|
Average gross
profit per unit
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
$
|
3,539
|
|
|
$
|
3,519
|
|
|
$
|
20
|
|
|
1
|
%
|
|
Import
|
1,046
|
|
|
1,253
|
|
|
(207)
|
|
|
(17)
|
%
|
|
Domestic
|
1,710
|
|
|
1,626
|
|
|
84
|
|
|
5
|
%
|
|
Total new
vehicle
|
1,722
|
|
|
1,860
|
|
|
(138)
|
|
|
(7)
|
%
|
|
Used
vehicle
|
1,644
|
|
|
1,758
|
|
|
(114)
|
|
|
(6)
|
%
|
|
Finance and
insurance, net
|
1,514
|
|
|
1,424
|
|
|
90
|
|
|
6
|
%
|
|
Front end yield
(1)
|
3,200
|
|
|
3,238
|
|
|
(38)
|
|
|
(1)
|
%
|
|
Gross
margin
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
6.6
|
%
|
|
6.8
|
%
|
|
(20)
|
bps
|
|
|
|
Import
|
3.8
|
%
|
|
4.5
|
%
|
|
(70)
|
bps
|
|
|
|
Domestic
|
4.5
|
%
|
|
4.6
|
%
|
|
(10)
|
bps
|
|
|
|
Total new
vehicle
|
4.9
|
%
|
|
5.3
|
%
|
|
(40)
|
bps
|
|
|
|
Used vehicle
retail
|
7.9
|
%
|
|
8.4
|
%
|
|
(50)
|
bps
|
|
|
|
Parts and
service
|
62.6
|
%
|
|
62.4
|
%
|
|
20
|
bps
|
|
|
|
Total gross profit
margin
|
16.8
|
%
|
|
16.8
|
%
|
|
—
|
bps
|
|
|
|
SG&A
metrics
|
|
|
|
|
|
|
|
|
Rent
expense
|
$
|
6.9
|
|
|
$
|
7.8
|
|
|
$
|
(0.9)
|
|
|
(12)
|
%
|
|
Total SG&A as a
percentage of gross profit
|
69.6
|
%
|
|
69.5
|
%
|
|
10
|
bps
|
|
|
|
SG&A, excluding
rent expense as a percentage of gross profit
|
67.0
|
%
|
|
66.5
|
%
|
|
50
|
bps
|
|
|
|
Operating
metrics
|
|
|
|
|
|
|
|
|
Income from
operations as a percentage of revenue
|
4.7
|
%
|
|
4.4
|
%
|
|
30
|
bps
|
|
|
|
Income from
operations as a percentage of gross profit
|
27.8
|
%
|
|
26.4
|
%
|
|
140
|
bps
|
|
|
|
Adjusted income from
operations as a percentage of revenue
|
4.6
|
%
|
|
4.7
|
%
|
|
(10)
|
bps
|
|
|
|
Adjusted income from
operations as a percentage of gross profit
|
27.5
|
%
|
|
27.7
|
%
|
|
(20)
|
bps
|
|
|
|
Revenue
mix
|
|
|
|
|
|
|
|
|
New
vehicle
|
53.7
|
%
|
|
54.1
|
%
|
|
|
|
|
|
Used vehicle
retail
|
26.8
|
%
|
|
26.6
|
%
|
|
|
|
|
|
Used vehicle
wholesale
|
3.0
|
%
|
|
3.1
|
%
|
|
|
|
|
|
Parts and
service
|
12.3
|
%
|
|
12.2
|
%
|
|
|
|
|
|
Finance and
insurance
|
4.2
|
%
|
|
4.0
|
%
|
|
|
|
|
|
Total revenue
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
Gross profit
mix
|
|
|
|
|
|
|
|
|
New
vehicle
|
15.5
|
%
|
|
17.1
|
%
|
|
|
|
|
|
Used vehicle
retail
|
12.8
|
%
|
|
13.4
|
%
|
|
|
|
|
|
Used vehicle
wholesale
|
0.3
|
%
|
|
0.4
|
%
|
|
|
|
|
|
Parts and
service
|
46.1
|
%
|
|
45.2
|
%
|
|
|
|
|
|
Finance and
insurance
|
25.3
|
%
|
|
23.9
|
%
|
|
|
|
|
|
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
March 31,
|
|
Increase
(Decrease)
|
|
%
Change
|
|
2017
|
|
2016
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
$
|
272.8
|
|
|
$
|
284.7
|
|
|
$
|
(11.9)
|
|
|
(4)
|
%
|
|
Import
|
377.5
|
|
|
355.7
|
|
|
21.8
|
|
|
6
|
%
|
|
Domestic
|
164.9
|
|
|
165.0
|
|
|
(0.1)
|
|
|
—
|
%
|
|
Total new vehicle
|
815.2
|
|
|
805.4
|
|
|
9.8
|
|
|
1
|
%
|
|
Used
Vehicle:
|
|
|
|
|
|
|
|
|
Retail
|
405.9
|
|
|
389.5
|
|
|
16.4
|
|
|
4
|
%
|
|
Wholesale
|
44.9
|
|
|
45.8
|
|
|
(0.9)
|
|
|
(2)
|
%
|
|
Total used
vehicle
|
450.8
|
|
|
435.3
|
|
|
15.5
|
|
|
4
|
%
|
|
Parts and
service
|
189.0
|
|
|
179.2
|
|
|
9.8
|
|
|
5
|
%
|
|
Finance and
insurance
|
64.6
|
|
|
59.2
|
|
|
5.4
|
|
|
9
|
%
|
|
Total
revenue
|
$
|
1,519.6
|
|
|
$
|
1,479.1
|
|
|
$
|
40.5
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
$
|
18.1
|
|
|
$
|
19.3
|
|
|
$
|
(1.2)
|
|
|
(6)
|
%
|
|
Import
|
14.2
|
|
|
16.4
|
|
|
(2.2)
|
|
|
(13)
|
%
|
|
Domestic
|
7.1
|
|
|
7.5
|
|
|
(0.4)
|
|
|
(5)
|
%
|
|
Total new vehicle
|
39.4
|
|
|
43.2
|
|
|
(3.8)
|
|
|
(9)
|
%
|
|
Used
Vehicle:
|
|
|
|
|
|
|
|
|
Retail
|
32.0
|
|
|
32.6
|
|
|
(0.6)
|
|
|
(2)
|
%
|
|
Wholesale
|
0.9
|
|
|
1.3
|
|
|
(0.4)
|
|
|
(31)
|
%
|
|
Total used
vehicle
|
32.9
|
|
|
33.9
|
|
|
(1.0)
|
|
|
(3)
|
%
|
|
Parts and
service:
|
|
|
|
|
|
|
|
|
Customer
pay
|
65.3
|
|
|
63.1
|
|
|
2.2
|
|
|
3
|
%
|
|
Warranty
|
20.1
|
|
|
16.5
|
|
|
3.6
|
|
|
22
|
%
|
|
Wholesale
parts
|
5.2
|
|
|
5.0
|
|
|
0.2
|
|
|
4
|
%
|
|
Parts and service, excluding
reconditioning and preparation
|
90.6
|
|
|
84.6
|
|
|
6.0
|
|
|
7
|
%
|
|
Reconditioning and
preparation
|
27.6
|
|
|
27.8
|
|
|
(0.2)
|
|
|
(1)
|
%
|
|
Total parts and
service
|
118.2
|
|
|
112.4
|
|
|
5.8
|
|
|
5
|
%
|
|
Finance and
insurance
|
64.6
|
|
|
59.2
|
|
|
5.4
|
|
|
9
|
%
|
|
Total gross
profit
|
$
|
255.1
|
|
|
$
|
248.7
|
|
|
$
|
6.4
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
SG&A
expense
|
$
|
177.4
|
|
|
$
|
172.3
|
|
|
$
|
5.1
|
|
|
3
|
%
|
|
SG&A expense as a
percentage of gross profit
|
69.5
|
%
|
|
69.3
|
%
|
|
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.
|
|
ASBURY AUTOMOTIVE
GROUP, INC.
SAME STORE OPERATING
HIGHLIGHTS (Continued)
(Unaudited)
|
|
|
For the Three
Months Ended
March 31,
|
|
Increase
(Decrease)
|
|
%
Change
|
|
2017
|
|
2016
|
|
|
|
Unit
sales
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
5,114
|
|
|
5,517
|
|
|
(403)
|
|
|
(7)
|
%
|
|
Import
|
13,566
|
|
|
12,914
|
|
|
652
|
|
|
5
|
%
|
|
Domestic
|
4,281
|
|
|
4,587
|
|
|
(306)
|
|
|
(7)
|
%
|
|
Total new vehicle
|
22,961
|
|
|
23,018
|
|
|
(57)
|
|
|
—
|
%
|
|
Used vehicle
retail
|
19,555
|
|
|
18,447
|
|
|
1,108
|
|
|
6
|
%
|
|
Used to new
ratio
|
85.2
|
%
|
|
80.1
|
%
|
|
510
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
Average selling
price
|
|
|
|
|
|
|
|
|
New
vehicle
|
$
|
35,504
|
|
|
$
|
34,990
|
|
|
$
|
514
|
|
|
1
|
%
|
|
Used vehicle
retail
|
20,757
|
|
|
21,115
|
|
|
(358)
|
|
|
(2)
|
%
|
|
|
|
|
|
|
|
|
|
Average gross
profit per unit
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
$
|
3,539
|
|
|
$
|
3,498
|
|
|
$
|
41
|
|
|
1
|
%
|
|
Import
|
1,047
|
|
|
1,270
|
|
|
(223)
|
|
|
(18)
|
%
|
|
Domestic
|
1,658
|
|
|
1,635
|
|
|
23
|
|
|
1
|
%
|
|
Total new
vehicle
|
1,716
|
|
|
1,877
|
|
|
(161)
|
|
|
(9)
|
%
|
|
Used vehicle
retail
|
1,636
|
|
|
1,767
|
|
|
(131)
|
|
|
(7)
|
%
|
|
Finance and
insurance, net
|
1,519
|
|
|
1,428
|
|
|
91
|
|
|
6
|
%
|
|
Front end yield
(1)
|
3,199
|
|
|
3,256
|
|
|
(57)
|
|
|
(2)
|
%
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
6.6
|
%
|
|
6.8
|
%
|
|
(20)
|
bps
|
|
|
|
Import
|
3.8
|
%
|
|
4.6
|
%
|
|
(80)
|
bps
|
|
|
|
Domestic
|
4.3
|
%
|
|
4.5
|
%
|
|
(20)
|
bps
|
|
|
|
Total new
vehicle
|
4.8
|
%
|
|
5.4
|
%
|
|
(60)
|
bps
|
|
|
|
Used vehicle
retail
|
7.9
|
%
|
|
8.4
|
%
|
|
(50)
|
bps
|
|
|
|
Parts and
service:
|
|
|
|
|
|
|
|
|
Parts and service,
excluding reconditioning and preparation
|
47.9
|
%
|
|
47.2
|
%
|
|
70
|
bps
|
|
|
|
Parts and service,
including reconditioning and preparation
|
62.5
|
%
|
|
62.7
|
%
|
|
(20)
|
bps
|
|
|
|
Total gross profit
margin
|
16.8
|
%
|
|
16.8
|
%
|
|
—
|
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)
|
|
|
|
|
|
|
|
|
|
March 31,
2017
|
|
December 31,
2016
|
|
Increase
(Decrease)
|
|
% Change
|
|
SELECTED BALANCE
SHEET DATA
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
3.1
|
|
$
|
3.4
|
|
$
|
(0.3)
|
|
(9)
|
%
|
|
New vehicle
inventory
|
780.2
|
|
720.6
|
|
59.6
|
|
8
|
%
|
|
Used vehicle
inventory
|
146.5
|
|
132.7
|
|
13.8
|
|
10
|
%
|
|
Parts
inventory
|
42.4
|
|
41.6
|
|
0.8
|
|
2
|
%
|
|
Total current
assets
|
1,348.6
|
|
1,332.4
|
|
16.2
|
|
1
|
%
|
|
Floor plan notes
payable
|
811.6
|
|
781.8
|
|
29.8
|
|
4
|
%
|
|
Total current
liabilities
|
1,153.4
|
|
1,104.9
|
|
48.5
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
CAPITALIZATION:
|
|
|
|
|
|
|
|
|
Long-term debt
(including current portion)
|
$
|
923.0
|
|
$
|
926.7
|
|
$
|
(3.7)
|
|
—
|
%
|
|
Shareholders'
equity
|
298.2
|
|
279.7
|
|
18.5
|
|
7
|
%
|
|
Total
|
$
|
1,221.2
|
|
$
|
1,206.4
|
|
$
|
14.8
|
|
1
|
%
|
|
March 31,
2017
|
|
December 31,
2016
|
|
DAYS
SUPPLY
|
|
|
|
|
New vehicle
inventory
|
74
|
|
61
|
|
Used vehicle
inventory
|
32
|
|
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 Three
Months Ended
March 31,
|
|
2017
|
|
2016
|
|
Luxury:
|
|
|
|
|
Mercedes-Benz
|
7
|
%
|
|
7
|
%
|
|
Lexus
|
6
|
%
|
|
7
|
%
|
|
BMW
|
5
|
%
|
|
7
|
%
|
|
Acura
|
4
|
%
|
|
4
|
%
|
|
Infiniti
|
3
|
%
|
|
4
|
%
|
|
Other
luxury
|
8
|
%
|
|
6
|
%
|
|
Total
luxury
|
33
|
%
|
|
35
|
%
|
|
Imports:
|
|
|
|
|
Honda
|
17
|
%
|
|
16
|
%
|
|
Nissan
|
13
|
%
|
|
11
|
%
|
|
Toyota
|
11
|
%
|
|
12
|
%
|
|
Other
imports
|
5
|
%
|
|
5
|
%
|
|
Total
imports
|
46
|
%
|
|
44
|
%
|
|
Domestic:
|
|
|
|
|
Ford
|
12
|
%
|
|
13
|
%
|
|
Chevrolet
|
4
|
%
|
|
2
|
%
|
|
Dodge
|
3
|
%
|
|
2
|
%
|
|
Other
domestics
|
2
|
%
|
|
4
|
%
|
|
Total
domestic
|
21
|
%
|
|
21
|
%
|
|
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." Further, management assesses the organic growth of our
revenue and gross profit on a same store basis. We believe that our
assessment on a same store basis represents an important indicator
of comparative financial performance and provides relevant
information to assess our performance at our existing locations.
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.
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
|
|
March 31,
2017
|
|
December 31,
2016
|
|
(Dollars in
millions)
|
|
Adjusted leverage
ratio:
|
|
|
|
|
Long-term debt
(including current portion)
|
$
|
923.0
|
|
$
|
926.7
|
|
|
|
|
|
Calculation of
earnings before interest, taxes, depreciation and amortization
("EBITDA"):
|
|
|
|
|
Income from
continuing operations
|
$
|
170.2
|
|
$
|
167.2
|
|
|
|
|
|
Add:
|
|
|
|
|
Depreciation and
amortization
|
31.0
|
|
30.7
|
|
Income tax
expense
|
100.4
|
|
100.6
|
|
Swap and other
interest expense
|
56.0
|
|
56.2
|
|
Earnings before
interest, taxes, depreciation and amortization
("EBITDA")
|
$
|
357.6
|
|
$
|
354.7
|
|
|
|
|
|
Non-core items -
(income) expense:
|
|
|
|
|
Legal
settlements
|
$
|
(7.5)
|
|
$
|
(6.6)
|
|
Real estate-related
charges
|
2.3
|
|
5.7
|
|
Gain on
divestitures
|
(45.5)
|
|
(45.5)
|
|
Total non-core
items
|
(50.7)
|
|
(46.4)
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
306.9
|
|
$
|
308.3
|
|
|
|
|
|
Adjusted leverage
ratio
|
3.0
|
|
3.0
|
|
For the Three
Months Ended
March 31,
|
|
2017
|
|
2016
|
|
(In millions,
except per share data)
|
|
Adjusted income from
operations:
|
|
|
|
|
Income from
operations
|
$
|
72.3
|
|
$
|
68.9
|
|
Real estate-related
charges
|
—
|
|
3.4
|
|
Legal
settlements
|
(0.9)
|
|
—
|
|
Adjusted income from
operations
|
$
|
71.4
|
|
$
|
72.3
|
|
|
|
|
|
Adjusted income from
continuing operations:
|
|
|
|
|
Income from
continuing operations
|
$
|
34.0
|
|
$
|
31.1
|
|
|
|
|
|
Non-core items -
(income) expense:
|
|
|
|
|
Legal
settlements
|
(0.9)
|
|
—
|
|
Real estate-related
charges
|
—
|
|
3.4
|
|
Income tax
benefit
|
0.3
|
|
(1.3)
|
|
Total non-core
items
|
(0.6)
|
|
2.1
|
|
Adjusted income from
continuing operations
|
$
|
33.4
|
|
$
|
33.2
|
|
|
|
|
|
Adjusted diluted
earnings per share (EPS) from continuing operations:
|
|
|
|
|
Net income
|
$
|
1.61
|
|
$
|
1.27
|
|
Discontinued
operations, net of tax
|
—
|
|
—
|
|
Income from
continuing operations
|
$
|
1.61
|
|
$
|
1.27
|
|
|
|
|
|
Total non-core
items
|
(0.03)
|
|
0.09
|
|
Adjusted diluted EPS
from continuing operations
|
$
|
1.58
|
|
$
|
1.36
|
|
|
|
|
|
Weighted average
common shares outstanding - diluted
|
21.1
|
|
24.4
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/asbury-automotive-group-announces-first-quarter-2017-financial-results-300446804.html
SOURCE Asbury Automotive Group, Inc.