DULUTH, Ga., July 25, 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 second quarter 2017 of $31.9
million, or $1.52 per diluted
share, compared to $36.7 million, or
$1.65 per diluted share in the prior
year quarter. It also reported adjusted income from continuing
operations (a non-GAAP measure) for the second quarter 2017 of
$33.2 million, or $1.58 per diluted share, compared to $36.6 million, or $1.65 per diluted share, in the prior year
quarter, a 4% decrease in adjusted earnings per share.
Income from continuing operations for the second quarter 2017
was adjusted for $2.9 million of
pre-tax real estate related charges, or $0.08 per diluted share and $0.8 million of pre-tax investment income, or
$0.02 per diluted share. There
were no adjustments for the second quarter 2016. See attached
reconciliation for reported adjustments related to both of these
periods.
Total revenue for the second 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 2% from the prior year period.
Second Quarter 2017 Operational Summary
Same store:
- Total revenues increased 2%; gross profit increased 2%
- New vehicle revenue remained flat; gross profit decreased
14%
- Used vehicle retail revenue increased 5%; gross profit
decreased 6%
- Finance and insurance revenue increased 8%
- Parts and service revenue increased 6%; gross profit increased
6%
All store:
- SG&A as a percentage of gross profit increased 140 basis
points to 69.5%
- Total company adjusted income from operations (a non-GAAP
measure) as a percentage of revenue was 4.5%, down 30 bps from the
prior year
- Adjusted EPS from continuing operations decreased 4%
"In a softening automotive retail environment, we are pleased to
have increased our same store revenue and gross profit by 2% this
quarter compared to the prior year," said Craig Monaghan, Asbury's President and Chief
Executive Officer. "Despite market pressures, we believe we can
deliver low to mid-single digit EPS growth in the back half of the
year."
"Even though we experienced margin pressure, our ability to
drive incremental Used Sales, enhance F&I PVR, and grow Parts
and Service enabled us to deliver industry leading operating
margins," said Asbury's Executive Vice President and Chief
Operating Officer, David Hult. "Our
investments in digital technologies and lead management initiatives
are yielding solid results and we will continue to invest in this
area in the future."
For the six-month period ended June 30,
2017, the Company reported total revenue of $3.2 billion, flat with the prior year period.
Total revenue on a same-store basis was up 2%.
For the six-month period ended June 30,
2017, the Company reported net income from continuing
operations of $65.9 million, or
$3.12 per diluted share, compared to
net income from continuing operations of $67.7 million, or $2.91 per diluted share in the prior year
period. For the six-month period ended June 30, 2017, the Company reported adjusted net
income from continuing operations (a non-GAAP measure) of
$66.6 million, or $3.16 per diluted share, compared to adjusted net
income from continuing operations of $69.8
million, or $3.00 per diluted
share in the prior year period.
Management will host a conference call at 10:00 a.m. Eastern Time today. 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 (888) 481-2864 (domestic), or (719) 325-2367
(international); passcode - 9324358. 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 -
9324358.
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. 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
|
|
2017
|
|
2016
|
|
|
|
REVENUE:
|
|
|
|
|
|
|
|
|
New
vehicle
|
$
|
882.9
|
|
|
$
|
897.0
|
|
|
$
|
(14.1)
|
|
|
(2)
|
%
|
|
Used
vehicle:
|
|
|
|
|
|
|
|
|
Retail
|
430.2
|
|
|
418.3
|
|
|
11.9
|
|
|
3
|
%
|
|
Wholesale
|
49.0
|
|
|
51.9
|
|
|
(2.9)
|
|
|
(6)
|
%
|
|
Total used
vehicle
|
479.2
|
|
|
470.2
|
|
|
9.0
|
|
|
2
|
%
|
|
Parts and
service
|
200.8
|
|
|
195.3
|
|
|
5.5
|
|
|
3
|
%
|
|
Finance and
insurance, net
|
68.9
|
|
|
64.9
|
|
|
4.0
|
|
|
6
|
%
|
|
TOTAL
REVENUE
|
1,631.8
|
|
|
1,627.4
|
|
|
4.4
|
|
|
—
|
%
|
|
GROSS
PROFIT:
|
|
|
|
|
|
|
|
|
New
vehicle
|
41.0
|
|
|
47.5
|
|
|
(6.5)
|
|
|
(14)
|
%
|
|
Used
vehicle:
|
|
|
|
|
|
|
|
|
Retail
|
32.5
|
|
|
34.8
|
|
|
(2.3)
|
|
|
(7)
|
%
|
|
Wholesale
|
0.2
|
|
|
(0.6)
|
|
|
0.8
|
|
|
133
|
%
|
|
Total used
vehicle
|
32.7
|
|
|
34.2
|
|
|
(1.5)
|
|
|
(4)
|
%
|
|
Parts and
service
|
124.5
|
|
|
121.0
|
|
|
3.5
|
|
|
3
|
%
|
|
Finance and
insurance, net
|
68.9
|
|
|
64.9
|
|
|
4.0
|
|
|
6
|
%
|
|
TOTAL GROSS
PROFIT
|
267.1
|
|
|
267.6
|
|
|
(0.5)
|
|
|
—
|
%
|
|
OPERATING EXPENSES
(INCOME):
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
185.6
|
|
|
182.3
|
|
|
3.3
|
|
|
2
|
%
|
|
Depreciation and
amortization
|
8.0
|
|
|
7.7
|
|
|
0.3
|
|
|
4
|
%
|
|
Other operating
expenses (income), net
|
1.9
|
|
|
(0.5)
|
|
|
2.4
|
|
|
NM
|
|
|
INCOME FROM
OPERATIONS
|
71.6
|
|
|
78.1
|
|
|
(6.5)
|
|
|
(8)
|
%
|
|
OTHER
EXPENSES:
|
|
|
|
|
|
|
|
|
Floor plan interest
expense
|
6.1
|
|
|
5.0
|
|
|
1.1
|
|
|
22
|
%
|
|
Other interest
expense, net
|
13.4
|
|
|
13.4
|
|
|
—
|
|
|
—
|
%
|
|
Swap interest
expense
|
0.6
|
|
|
0.8
|
|
|
(0.2)
|
|
|
(25)
|
%
|
|
Total other expenses,
net
|
20.1
|
|
|
19.2
|
|
|
0.9
|
|
|
5
|
%
|
|
INCOME FROM
CONTINUING OPERATIONS BEFORE INCOME TAXES
|
51.5
|
|
|
58.9
|
|
|
(7.4)
|
|
|
(13)
|
%
|
|
Income tax
expense
|
19.6
|
|
|
22.3
|
|
|
(2.7)
|
|
|
(12)
|
%
|
|
INCOME FROM
CONTINUING OPERATIONS
|
31.9
|
|
|
36.6
|
|
|
(4.7)
|
|
|
(13)
|
%
|
|
Discontinued
operations, net of tax
|
—
|
|
|
0.1
|
|
|
(0.1)
|
|
|
(100)
|
%
|
|
NET INCOME
|
$
|
31.9
|
|
|
$
|
36.7
|
|
|
$
|
(4.8)
|
|
|
(13)
|
%
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
Basic—
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
1.53
|
|
|
$
|
1.66
|
|
|
$
|
(0.13)
|
|
|
(8)
|
%
|
|
Discontinued
operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
Net income
|
$
|
1.53
|
|
|
$
|
1.66
|
|
|
$
|
(0.13)
|
|
|
(8)
|
%
|
|
Diluted—
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
1.52
|
|
|
$
|
1.65
|
|
|
$
|
(0.13)
|
|
|
(8)
|
%
|
|
Discontinued
operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
Net income
|
$
|
1.52
|
|
|
$
|
1.65
|
|
|
$
|
(0.13)
|
|
|
(8)
|
%
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
20.8
|
|
|
22.1
|
|
|
(1.3)
|
|
|
(6)
|
%
|
|
Stock
options
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
%
|
|
Restricted
stock
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
%
|
|
Performance share
units
|
21.0
|
|
|
22.2
|
|
|
(1.2)
|
|
|
(5)
|
%
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
______________________________
|
|
NM—Not
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
|
|
2017
|
|
2016
|
|
|
|
Unit
sales
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
5,504
|
|
|
5,782
|
|
|
(278)
|
|
|
(5)
|
%
|
|
Import
|
14,833
|
|
|
14,808
|
|
|
25
|
|
|
—
|
%
|
|
Domestic
|
4,794
|
|
|
5,175
|
|
|
(381)
|
|
|
(7)
|
%
|
|
Total new vehicle
|
25,131
|
|
|
25,765
|
|
|
(634)
|
|
|
(2)
|
%
|
|
Used vehicle
retail
|
20,263
|
|
|
19,612
|
|
|
651
|
|
|
3
|
%
|
|
Used to new
ratio
|
80.6
|
%
|
|
76.1
|
%
|
|
450
|
bps
|
|
|
|
Average selling
price
|
|
|
|
|
|
|
|
|
New
vehicle
|
$
|
35,132
|
|
|
$
|
34,815
|
|
|
$
|
317
|
|
|
1
|
%
|
|
Used vehicle
retail
|
21,231
|
|
|
21,329
|
|
|
(98)
|
|
|
—
|
%
|
|
Average gross
profit per unit
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
$
|
3,307
|
|
|
$
|
3,615
|
|
|
$
|
(308)
|
|
|
(9)
|
%
|
|
Import
|
944
|
|
|
1,189
|
|
|
(245)
|
|
|
(21)
|
%
|
|
Domestic
|
1,836
|
|
|
1,739
|
|
|
97
|
|
|
6
|
%
|
|
Total new
vehicle
|
1,631
|
|
|
1,844
|
|
|
(213)
|
|
|
(12)
|
%
|
|
Used
vehicle
|
1,604
|
|
|
1,774
|
|
|
(170)
|
|
|
(10)
|
%
|
|
Finance and
insurance, net
|
1,518
|
|
|
1,430
|
|
|
88
|
|
|
6
|
%
|
|
Front end yield
(1)
|
3,137
|
|
|
3,244
|
|
|
(107)
|
|
|
(3)
|
%
|
|
Gross
margin
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
6.3
|
%
|
|
6.9
|
%
|
|
(60)
|
bps
|
|
|
|
Import
|
3.4
|
%
|
|
4.3
|
%
|
|
(90)
|
bps
|
|
|
|
Domestic
|
4.9
|
%
|
|
4.8
|
%
|
|
10
|
bps
|
|
|
|
Total new
vehicle
|
4.6
|
%
|
|
5.3
|
%
|
|
(70)
|
bps
|
|
|
|
Used vehicle
retail
|
7.6
|
%
|
|
8.3
|
%
|
|
(70)
|
bps
|
|
|
|
Parts and
service
|
62.0
|
%
|
|
62.0
|
%
|
|
—
|
bps
|
|
|
|
Total gross profit
margin
|
16.4
|
%
|
|
16.4
|
%
|
|
—
|
bps
|
|
|
|
SG&A
metrics
|
|
|
|
|
|
|
|
|
Rent
expense
|
$
|
6.8
|
|
|
$
|
7.6
|
|
|
$
|
(0.8)
|
|
|
(11)
|
%
|
|
Total SG&A as a
percentage of gross profit
|
69.5
|
%
|
|
68.1
|
%
|
|
140
|
bps
|
|
|
|
SG&A, excluding
rent expense as a percentage of gross profit
|
66.9
|
%
|
|
65.3
|
%
|
|
160
|
bps
|
|
|
|
Operating
metrics
|
|
|
|
|
|
|
|
|
Income from
operations as a percentage of revenue
|
4.4
|
%
|
|
4.8
|
%
|
|
(40)
|
bps
|
|
|
|
Income from
operations as a percentage of gross profit
|
26.8
|
%
|
|
29.2
|
%
|
|
(240)
|
bps
|
|
|
|
Adjusted income from
operations as a percentage of revenue
|
4.5
|
%
|
|
4.8
|
%
|
|
(30)
|
bps
|
|
|
|
Adjusted income from
operations as a percentage of gross profit
|
27.6
|
%
|
|
29.2
|
%
|
|
(160)
|
bps
|
|
|
|
Revenue
mix
|
|
|
|
|
|
|
|
|
New
vehicle
|
54.1
|
%
|
|
55.1
|
%
|
|
|
|
|
|
Used vehicle
retail
|
26.4
|
%
|
|
25.7
|
%
|
|
|
|
|
|
Used vehicle
wholesale
|
3.0
|
%
|
|
3.2
|
%
|
|
|
|
|
|
Parts and
service
|
12.3
|
%
|
|
12.0
|
%
|
|
|
|
|
|
Finance and
insurance
|
4.2
|
%
|
|
4.0
|
%
|
|
|
|
|
|
Total revenue
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
Gross profit
mix
|
|
|
|
|
|
|
|
|
New
vehicle
|
15.4
|
%
|
|
17.8
|
%
|
|
|
|
|
|
Used vehicle
retail
|
12.1
|
%
|
|
12.9
|
%
|
|
|
|
|
|
Used vehicle
wholesale
|
0.1
|
%
|
|
(0.2)
|
%
|
|
|
|
|
|
Parts and
service
|
46.6
|
%
|
|
45.2
|
%
|
|
|
|
|
|
Finance and
insurance
|
25.8
|
%
|
|
24.3
|
%
|
|
|
|
|
|
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
|
|
2017
|
|
2016
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
$
|
291.1
|
|
|
$
|
294.9
|
|
|
$
|
(3.8)
|
|
|
(1)
|
%
|
|
Import
|
402.7
|
|
|
388.2
|
|
|
14.5
|
|
|
4
|
%
|
|
Domestic
|
163.2
|
|
|
175.5
|
|
|
(12.3)
|
|
|
(7)
|
%
|
|
Total new vehicle
|
857.0
|
|
|
858.6
|
|
|
(1.6)
|
|
|
—
|
%
|
|
Used
Vehicle:
|
|
|
|
|
|
|
|
|
Retail
|
416.4
|
|
|
396.4
|
|
|
20.0
|
|
|
5
|
%
|
|
Wholesale
|
47.4
|
|
|
49.7
|
|
|
(2.3)
|
|
|
(5)
|
%
|
|
Total used
vehicle
|
463.8
|
|
|
446.1
|
|
|
17.7
|
|
|
4
|
%
|
|
Parts and
service
|
197.1
|
|
|
185.6
|
|
|
11.5
|
|
|
6
|
%
|
|
Finance and
insurance
|
66.8
|
|
|
61.9
|
|
|
4.9
|
|
|
8
|
%
|
|
Total
revenue
|
$
|
1,584.7
|
|
|
$
|
1,552.2
|
|
|
$
|
32.5
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
$
|
18.2
|
|
|
$
|
20.4
|
|
|
$
|
(2.2)
|
|
|
(11)
|
%
|
|
Import
|
13.8
|
|
|
17.0
|
|
|
(3.2)
|
|
|
(19)
|
%
|
|
Domestic
|
7.6
|
|
|
8.4
|
|
|
(0.8)
|
|
|
(10)
|
%
|
|
Total new vehicle
|
39.6
|
|
|
45.8
|
|
|
(6.2)
|
|
|
(14)
|
%
|
|
Used
Vehicle:
|
|
|
|
|
|
|
|
|
Retail
|
31.1
|
|
|
33.1
|
|
|
(2.0)
|
|
|
(6)
|
%
|
|
Wholesale
|
0.2
|
|
|
(0.8)
|
|
|
1.0
|
|
|
125
|
%
|
|
Total used
vehicle
|
31.3
|
|
|
32.3
|
|
|
(1.0)
|
|
|
(3)
|
%
|
|
Parts and
service:
|
|
|
|
|
|
|
|
|
Customer
pay
|
67.9
|
|
|
65.1
|
|
|
2.8
|
|
|
4
|
%
|
|
Warranty
|
20.4
|
|
|
16.6
|
|
|
3.8
|
|
|
23
|
%
|
|
Wholesale
parts
|
5.2
|
|
|
4.8
|
|
|
0.4
|
|
|
8
|
%
|
|
Parts and service, excluding
reconditioning and preparation
|
93.5
|
|
|
86.5
|
|
|
7.0
|
|
|
8
|
%
|
|
Reconditioning and
preparation
|
28.5
|
|
|
29.0
|
|
|
(0.5)
|
|
|
(2)
|
%
|
|
Total parts
and service
|
122.0
|
|
|
115.5
|
|
|
6.5
|
|
|
6
|
%
|
|
Finance and
insurance
|
66.8
|
|
|
61.9
|
|
|
4.9
|
|
|
8
|
%
|
|
Total gross
profit
|
$
|
259.7
|
|
|
$
|
255.5
|
|
|
$
|
4.2
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
SG&A
expense
|
$
|
180.4
|
|
|
$
|
174.0
|
|
|
$
|
6.4
|
|
|
4
|
%
|
|
SG&A expense as a
percentage of gross profit
|
69.5
|
%
|
|
68.1
|
%
|
|
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
|
|
2017
|
|
2016
|
|
|
|
Unit
sales
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
5,504
|
|
|
5,672
|
|
|
(168)
|
|
|
(3)
|
%
|
|
Import
|
14,572
|
|
|
14,166
|
|
|
406
|
|
|
3
|
%
|
|
Domestic
|
4,293
|
|
|
4,770
|
|
|
(477)
|
|
|
(10)
|
%
|
|
Total new vehicle
|
24,369
|
|
|
24,608
|
|
|
(239)
|
|
|
(1)
|
%
|
|
Used vehicle
retail
|
19,531
|
|
|
18,465
|
|
|
1,066
|
|
|
6
|
%
|
|
Used to new
ratio
|
80.1
|
%
|
|
75.0
|
%
|
|
510
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
Average selling
price
|
|
|
|
|
|
|
|
|
New
vehicle
|
$
|
35,168
|
|
|
$
|
34,891
|
|
|
$
|
277
|
|
|
1
|
%
|
|
Used vehicle
retail
|
21,320
|
|
|
21,468
|
|
|
(148)
|
|
|
(1)
|
%
|
|
|
|
|
|
|
|
|
|
Average gross
profit per unit
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
$
|
3,307
|
|
|
$
|
3,597
|
|
|
$
|
(290)
|
|
|
(8)
|
%
|
|
Import
|
947
|
|
|
1,200
|
|
|
(253)
|
|
|
(21)
|
%
|
|
Domestic
|
1,770
|
|
|
1,761
|
|
|
9
|
|
|
1
|
%
|
|
Total new
vehicle
|
1,625
|
|
|
1,861
|
|
|
(236)
|
|
|
(13)
|
%
|
|
Used vehicle
retail
|
1,592
|
|
|
1,793
|
|
|
(201)
|
|
|
(11)
|
%
|
|
Finance and
insurance, net
|
1,522
|
|
|
1,437
|
|
|
85
|
|
|
6
|
%
|
|
Front end yield
(1)
|
3,132
|
|
|
3,269
|
|
|
(137)
|
|
|
(4)
|
%
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
6.3
|
%
|
|
6.9
|
%
|
|
(60)
|
bps
|
|
|
|
Import
|
3.4
|
%
|
|
4.4
|
%
|
|
(100)
|
bps
|
|
|
|
Domestic
|
4.7
|
%
|
|
4.8
|
%
|
|
(10)
|
bps
|
|
|
|
Total new
vehicle
|
4.6
|
%
|
|
5.3
|
%
|
|
(70)
|
bps
|
|
|
|
Used vehicle
retail
|
7.5
|
%
|
|
8.4
|
%
|
|
(90)
|
bps
|
|
|
|
Parts and
service:
|
|
|
|
|
|
|
|
|
Parts and service,
excluding reconditioning and preparation
|
47.4
|
%
|
|
46.6
|
%
|
|
80
|
bps
|
|
|
|
Parts and service,
including reconditioning and preparation
|
61.9
|
%
|
|
62.2
|
%
|
|
(30)
|
bps
|
|
|
|
Total gross profit
margin
|
16.4
|
%
|
|
16.5
|
%
|
|
(10)
|
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
|
|
2017
|
|
2016
|
|
|
|
REVENUE:
|
|
|
|
|
|
|
|
|
New
vehicle
|
$
|
1,715.4
|
|
|
$
|
1,735.4
|
|
|
$
|
(20.0)
|
|
|
(1)
|
%
|
|
Used
vehicle:
|
|
|
|
|
|
|
|
|
Retail
|
845.6
|
|
|
831.4
|
|
|
14.2
|
|
|
2
|
%
|
|
Wholesale
|
95.4
|
|
|
99.7
|
|
|
(4.3)
|
|
|
(4)
|
%
|
|
Total used
vehicle
|
941.0
|
|
|
931.1
|
|
|
9.9
|
|
|
1
|
%
|
|
Parts and
service
|
392.3
|
|
|
384.5
|
|
|
7.8
|
|
|
2
|
%
|
|
Finance and
insurance, net
|
134.8
|
|
|
127.2
|
|
|
7.6
|
|
|
6
|
%
|
|
TOTAL
REVENUE
|
3,183.5
|
|
|
3,178.2
|
|
|
5.3
|
|
|
—
|
%
|
|
GROSS
PROFIT:
|
|
|
|
|
|
|
|
|
New
vehicle
|
81.4
|
|
|
92.2
|
|
|
(10.8)
|
|
|
(12)
|
%
|
|
Used
vehicle:
|
|
|
|
|
|
|
|
|
Retail
|
65.5
|
|
|
69.5
|
|
|
(4.0)
|
|
|
(6)
|
%
|
|
Wholesale
|
1.1
|
|
|
0.5
|
|
|
0.6
|
|
|
120
|
%
|
|
Total used
vehicle
|
66.6
|
|
|
70.0
|
|
|
(3.4)
|
|
|
(5)
|
%
|
|
Parts and
service
|
244.4
|
|
|
239.0
|
|
|
5.4
|
|
|
2
|
%
|
|
Finance and
insurance, net
|
134.8
|
|
|
127.2
|
|
|
7.6
|
|
|
6
|
%
|
|
TOTAL GROSS
PROFIT
|
527.2
|
|
|
528.4
|
|
|
(1.2)
|
|
|
—
|
%
|
|
OPERATING EXPENSES
(INCOME):
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
366.7
|
|
|
363.5
|
|
|
3.2
|
|
|
1
|
%
|
|
Depreciation and
amortization
|
15.9
|
|
|
15.2
|
|
|
0.7
|
|
|
5
|
%
|
|
Other operating
expenses (income), net
|
0.7
|
|
|
2.7
|
|
|
(2.0)
|
|
|
(74)
|
%
|
|
INCOME FROM
OPERATIONS
|
143.9
|
|
|
147.0
|
|
|
(3.1)
|
|
|
(2)
|
%
|
|
OTHER
EXPENSES:
|
|
|
|
|
|
|
|
|
Floor plan interest
expense
|
11.3
|
|
|
9.4
|
|
|
1.9
|
|
|
20
|
%
|
|
Other interest
expense, net
|
26.8
|
|
|
26.8
|
|
|
—
|
|
|
—
|
%
|
|
Swap interest
expense
|
1.2
|
|
|
1.6
|
|
|
(0.4)
|
|
|
(25)
|
%
|
|
Total other expenses,
net
|
39.3
|
|
|
37.8
|
|
|
1.5
|
|
|
4
|
%
|
|
INCOME FROM
CONTINUING OPERATIONS BEFORE INCOME TAXES
|
104.6
|
|
|
109.2
|
|
|
(4.6)
|
|
|
(4)
|
%
|
|
Income tax
expense
|
38.7
|
|
|
41.5
|
|
|
(2.8)
|
|
|
(7)
|
%
|
|
INCOME FROM
CONTINUING OPERATIONS
|
65.9
|
|
|
67.7
|
|
|
(1.8)
|
|
|
(3)
|
%
|
|
Discontinued
operations, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
NET INCOME
|
$
|
65.9
|
|
|
$
|
67.7
|
|
|
$
|
(1.8)
|
|
|
(3)
|
%
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
Basic—
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
3.15
|
|
|
$
|
2.92
|
|
|
$
|
0.23
|
|
|
8
|
%
|
|
Discontinued
operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
Net income
|
$
|
3.15
|
|
|
$
|
2.92
|
|
|
$
|
0.23
|
|
|
8
|
%
|
|
Diluted—
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
3.12
|
|
|
$
|
2.91
|
|
|
$
|
0.21
|
|
|
7
|
%
|
|
Discontinued
operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
Net income
|
$
|
3.12
|
|
|
$
|
2.91
|
|
|
$
|
0.21
|
|
|
7
|
%
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
20.9
|
|
|
23.2
|
|
|
(2.3)
|
|
|
(10)
|
%
|
|
Restricted
stock
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
%
|
|
Performance share
units
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
%
|
|
Diluted
|
21.1
|
|
|
23.3
|
|
|
(2.2)
|
|
|
(9)
|
%
|
|
ASBURY AUTOMOTIVE
GROUP, INC.
|
|
KEY OPERATING
HIGHLIGHTS (In millions, except per unit data)
|
|
(Unaudited)
|
|
|
For the Six
Months
Ended June 30,
|
|
Increase
(Decrease)
|
|
%
Change
|
|
2017
|
|
2016
|
|
|
|
Unit
sales
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
10,618
|
|
|
11,408
|
|
|
(790)
|
|
|
(7)
|
%
|
|
Import
|
28,507
|
|
|
28,292
|
|
|
215
|
|
|
1
|
%
|
|
Domestic
|
9,472
|
|
|
10,094
|
|
|
(622)
|
|
|
(6)
|
%
|
|
Total new vehicle
|
48,597
|
|
|
49,794
|
|
|
(1,197)
|
|
|
(2)
|
%
|
|
Used vehicle
retail
|
40,330
|
|
|
39,348
|
|
|
982
|
|
|
2
|
%
|
|
Used to new
ratio
|
83.0
|
%
|
|
79.0
|
%
|
|
400
|
bps
|
|
|
|
Average selling
price
|
|
|
|
|
|
|
|
|
New
vehicle
|
$
|
35,298
|
|
|
$
|
34,852
|
|
|
$
|
446
|
|
|
1
|
%
|
|
Used vehicle
retail
|
20,967
|
|
|
21,129
|
|
|
(162)
|
|
|
(1)
|
%
|
|
Average gross
profit per unit
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
$
|
3,419
|
|
|
$
|
3,559
|
|
|
$
|
(140)
|
|
|
(4)
|
%
|
|
Import
|
993
|
|
|
1,223
|
|
|
(230)
|
|
|
(19)
|
%
|
|
Domestic
|
1,774
|
|
|
1,684
|
|
|
90
|
|
|
5
|
%
|
|
Total new
vehicle
|
1,675
|
|
|
1,852
|
|
|
(177)
|
|
|
(10)
|
%
|
|
Used
vehicle
|
1,624
|
|
|
1,766
|
|
|
(142)
|
|
|
(8)
|
%
|
|
Finance and
insurance, net
|
1,516
|
|
|
1,427
|
|
|
89
|
|
|
6
|
%
|
|
Front end yield
(1)
|
3,168
|
|
|
3,241
|
|
|
(73)
|
|
|
(2)
|
%
|
|
Gross
margin
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
6.4
|
%
|
|
6.9
|
%
|
|
(50)
|
bps
|
|
|
|
Import
|
3.6
|
%
|
|
4.4
|
%
|
|
(80)
|
bps
|
|
|
|
Domestic
|
4.7
|
%
|
|
4.7
|
%
|
|
—
|
bps
|
|
|
|
Total new
vehicle
|
4.7
|
%
|
|
5.3
|
%
|
|
(60)
|
bps
|
|
|
|
Used vehicle
retail
|
7.7
|
%
|
|
8.4
|
%
|
|
(70)
|
bps
|
|
|
|
Parts and
service
|
62.3
|
%
|
|
62.2
|
%
|
|
10
|
bps
|
|
|
|
Total gross profit
margin
|
16.6
|
%
|
|
16.6
|
%
|
|
—
|
bps
|
|
|
|
SG&A
metrics
|
|
|
|
|
|
|
|
|
Rent
expense
|
$
|
13.7
|
|
|
$
|
15.4
|
|
|
$
|
(1.7)
|
|
|
(11)
|
%
|
|
Total SG&A as a
percentage of gross profit
|
69.6
|
%
|
|
68.8
|
%
|
|
80
|
bps
|
|
|
|
SG&A, excluding
rent expense as a percentage of gross profit
|
67.0
|
%
|
|
65.9
|
%
|
|
110
|
bps
|
|
|
|
Operating
metrics
|
|
|
|
|
|
|
|
|
Income from
operations as a percentage of revenue
|
4.5
|
%
|
|
4.6
|
%
|
|
(10)
|
bps
|
|
|
|
Income from
operations as a percentage of gross profit
|
27.3
|
%
|
|
27.8
|
%
|
|
(50)
|
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
|
%
|
|
28.5
|
%
|
|
(100)
|
bps
|
|
|
|
Revenue
mix
|
|
|
|
|
|
|
|
|
New
vehicle
|
53.9
|
%
|
|
54.6
|
%
|
|
|
|
|
|
Used vehicle
retail
|
26.6
|
%
|
|
26.2
|
%
|
|
|
|
|
|
Used vehicle
wholesale
|
3.0
|
%
|
|
3.1
|
%
|
|
|
|
|
|
Parts and
service
|
12.3
|
%
|
|
12.1
|
%
|
|
|
|
|
|
Finance and
insurance
|
4.2
|
%
|
|
4.0
|
%
|
|
|
|
|
|
Total revenue
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
Gross profit
mix
|
|
|
|
|
|
|
|
|
New
vehicle
|
15.4
|
%
|
|
17.4
|
%
|
|
|
|
|
|
Used vehicle
retail
|
12.4
|
%
|
|
13.2
|
%
|
|
|
|
|
|
Used vehicle
wholesale
|
0.2
|
%
|
|
0.1
|
%
|
|
|
|
|
|
Parts and
service
|
46.4
|
%
|
|
45.2
|
%
|
|
|
|
|
|
Finance and
insurance
|
25.6
|
%
|
|
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 unit sales.
|
|
ASBURY AUTOMOTIVE
GROUP, INC.
|
|
SAME STORE OPERATING
HIGHLIGHTS (In millions)
|
|
(Unaudited)
|
|
|
For the Six
Months
Ended June 30,
|
|
Increase
(Decrease)
|
|
%
Change
|
|
2017
|
|
2016
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
$
|
564.0
|
|
|
$
|
579.6
|
|
|
$
|
(15.6)
|
|
|
(3)
|
%
|
|
Import
|
780.1
|
|
|
743.9
|
|
|
36.2
|
|
|
5
|
%
|
|
Domestic
|
328.1
|
|
|
340.5
|
|
|
(12.4)
|
|
|
(4)
|
%
|
|
Total new vehicle
|
1,672.2
|
|
|
1,664.0
|
|
|
8.2
|
|
|
—
|
%
|
|
Used
Vehicle:
|
|
|
|
|
|
|
|
|
Retail
|
822.3
|
|
|
785.9
|
|
|
36.4
|
|
|
5
|
%
|
|
Wholesale
|
92.3
|
|
|
95.5
|
|
|
(3.2)
|
|
|
(3)
|
%
|
|
Total used
vehicle
|
914.6
|
|
|
881.4
|
|
|
33.2
|
|
|
4
|
%
|
|
Parts and
service
|
386.1
|
|
|
364.8
|
|
|
21.3
|
|
|
6
|
%
|
|
Finance and
insurance
|
131.4
|
|
|
121.1
|
|
|
10.3
|
|
|
9
|
%
|
|
Total
revenue
|
$
|
3,104.3
|
|
|
$
|
3,031.3
|
|
|
$
|
73.0
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
$
|
36.3
|
|
|
$
|
39.7
|
|
|
$
|
(3.4)
|
|
|
(9)
|
%
|
|
Import
|
28.0
|
|
|
33.4
|
|
|
(5.4)
|
|
|
(16)
|
%
|
|
Domestic
|
14.7
|
|
|
15.9
|
|
|
(1.2)
|
|
|
(8)
|
%
|
|
Total new vehicle
|
79.0
|
|
|
89.0
|
|
|
(10.0)
|
|
|
(11)
|
%
|
|
Used
Vehicle:
|
|
|
|
|
|
|
|
|
Retail
|
63.0
|
|
|
65.6
|
|
|
(2.6)
|
|
|
(4)
|
%
|
|
Wholesale
|
1.1
|
|
|
0.5
|
|
|
0.6
|
|
|
120
|
%
|
|
Total used
vehicle
|
64.1
|
|
|
66.1
|
|
|
(2.0)
|
|
|
(3)
|
%
|
|
Parts and
service:
|
|
|
|
|
|
|
|
|
Customer
pay
|
133.2
|
|
|
128.2
|
|
|
5.0
|
|
|
4
|
%
|
|
Warranty
|
40.5
|
|
|
33.1
|
|
|
7.4
|
|
|
22
|
%
|
|
Wholesale
parts
|
10.4
|
|
|
9.8
|
|
|
0.6
|
|
|
6
|
%
|
|
Parts and service, excluding
reconditioning and preparation
|
184.1
|
|
|
171.1
|
|
|
13.0
|
|
|
8
|
%
|
|
Reconditioning and
preparation
|
56.1
|
|
|
56.8
|
|
|
(0.7)
|
|
|
(1)
|
%
|
|
Total parts
and service
|
240.2
|
|
|
227.9
|
|
|
12.3
|
|
|
5
|
%
|
|
Finance and
insurance
|
131.4
|
|
|
121.1
|
|
|
10.3
|
|
|
9
|
%
|
|
Total gross
profit
|
$
|
514.7
|
|
|
$
|
504.1
|
|
|
$
|
10.6
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
SG&A
expense
|
$
|
357.7
|
|
|
$
|
346.2
|
|
|
$
|
11.5
|
|
|
3
|
%
|
|
SG&A expense as a
percentage of gross profit
|
69.5
|
%
|
|
68.7
|
%
|
|
80
|
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 Six
Months
Ended June 30,
|
|
Increase
(Decrease)
|
|
%
Change
|
|
2017
|
|
2016
|
|
|
|
Unit
sales
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
10,618
|
|
|
11,189
|
|
|
(571)
|
|
|
(5)
|
%
|
|
Import
|
28,138
|
|
|
27,080
|
|
|
1,058
|
|
|
4
|
%
|
|
Domestic
|
8,574
|
|
|
9,357
|
|
|
(783)
|
|
|
(8)
|
%
|
|
Total new vehicle
|
47,330
|
|
|
47,626
|
|
|
(296)
|
|
|
(1)
|
%
|
|
Used vehicle
retail
|
39,086
|
|
|
36,912
|
|
|
2,174
|
|
|
6
|
%
|
|
Used to new
ratio
|
82.6
|
%
|
|
77.5
|
%
|
|
510
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
Average selling
price
|
|
|
|
|
|
|
|
|
New
vehicle
|
$
|
35,331
|
|
|
$
|
34,939
|
|
|
$
|
392
|
|
|
1
|
%
|
|
Used vehicle
retail
|
21,038
|
|
|
21,291
|
|
|
(253)
|
|
|
(1)
|
%
|
|
|
|
|
|
|
|
|
|
Average gross
profit per unit
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
$
|
3,419
|
|
|
$
|
3,548
|
|
|
$
|
(129)
|
|
|
(4)
|
%
|
|
Import
|
995
|
|
|
1,233
|
|
|
(238)
|
|
|
(19)
|
%
|
|
Domestic
|
1,714
|
|
|
1,699
|
|
|
15
|
|
|
1
|
%
|
|
Total new
vehicle
|
1,669
|
|
|
1,869
|
|
|
(200)
|
|
|
(11)
|
%
|
|
Used vehicle
retail
|
1,612
|
|
|
1,777
|
|
|
(165)
|
|
|
(9)
|
%
|
|
Finance and
insurance, net
|
1,521
|
|
|
1,432
|
|
|
89
|
|
|
6
|
%
|
|
Front end yield
(1)
|
3,164
|
|
|
3,261
|
|
|
(97)
|
|
|
(3)
|
%
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
6.4
|
%
|
|
6.8
|
%
|
|
(40)
|
bps
|
|
|
|
Import
|
3.6
|
%
|
|
4.5
|
%
|
|
(90)
|
bps
|
|
|
|
Domestic
|
4.5
|
%
|
|
4.7
|
%
|
|
(20)
|
bps
|
|
|
|
Total new
vehicle
|
4.7
|
%
|
|
5.3
|
%
|
|
(60)
|
bps
|
|
|
|
Used vehicle
retail
|
7.7
|
%
|
|
8.3
|
%
|
|
(60)
|
bps
|
|
|
|
Parts and
service:
|
|
|
|
|
|
|
|
|
Parts and service,
excluding reconditioning and preparation
|
47.7
|
%
|
|
46.9
|
%
|
|
80
|
bps
|
|
|
|
Parts and service,
including reconditioning and preparation
|
62.2
|
%
|
|
62.5
|
%
|
|
(30)
|
bps
|
|
|
|
Total gross profit
margin
|
16.6
|
%
|
|
16.6
|
%
|
|
—
|
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,
2017
|
|
December 31,
2016
|
|
Increase
(Decrease)
|
|
% Change
|
|
SELECTED BALANCE
SHEET DATA
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
2.7
|
|
|
$
|
3.4
|
|
|
$
|
(0.7)
|
|
|
(21)
|
%
|
|
New vehicle
inventory
|
740.5
|
|
|
720.6
|
|
|
19.9
|
|
|
3
|
%
|
|
Used vehicle
inventory
|
147.1
|
|
|
132.7
|
|
|
14.4
|
|
|
11
|
%
|
|
Parts
inventory
|
42.8
|
|
|
41.6
|
|
|
1.2
|
|
|
3
|
%
|
|
Total current
assets
|
1,318.0
|
|
|
1,332.4
|
|
|
(14.4)
|
|
|
(1)
|
%
|
|
Floor plan notes
payable
|
820.7
|
|
|
781.8
|
|
|
38.9
|
|
|
5
|
%
|
|
Total current
liabilities
|
1,103.2
|
|
|
1,104.9
|
|
|
(1.7)
|
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
CAPITALIZATION:
|
|
|
|
|
|
|
|
|
Long-term debt
(including current portion)
|
$
|
919.4
|
|
|
$
|
926.7
|
|
|
$
|
(7.3)
|
|
|
(1)
|
%
|
|
Shareholders'
equity
|
318.1
|
|
|
279.7
|
|
|
38.4
|
|
|
14
|
%
|
|
Total
|
$
|
1,237.5
|
|
|
$
|
1,206.4
|
|
|
$
|
31.1
|
|
|
3
|
%
|
|
|
|
|
June 30,
2017
|
|
December 31,
2016
|
|
DAYS
SUPPLY
|
|
|
|
|
|
New vehicle
inventory
|
|
74
|
|
|
61
|
|
|
Used vehicle
inventory
|
|
35
|
|
|
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,
|
|
2017
|
|
2016
|
|
Luxury:
|
|
|
|
|
Mercedes-Benz
|
7
|
%
|
|
7
|
%
|
|
Lexus
|
6
|
%
|
|
7
|
%
|
|
BMW
|
5
|
%
|
|
7
|
%
|
|
Acura
|
4
|
%
|
|
4
|
%
|
|
Infiniti
|
3
|
%
|
|
3
|
%
|
|
Other
luxury
|
8
|
%
|
|
6
|
%
|
|
Total
luxury
|
33
|
%
|
|
34
|
%
|
|
Imports:
|
|
|
|
|
Honda
|
18
|
%
|
|
17
|
%
|
|
Nissan
|
12
|
%
|
|
10
|
%
|
|
Toyota
|
11
|
%
|
|
12
|
%
|
|
Other
imports
|
5
|
%
|
|
6
|
%
|
|
Total
imports
|
46
|
%
|
|
45
|
%
|
|
Domestic:
|
|
|
|
|
Ford
|
11
|
%
|
|
14
|
%
|
|
Chevrolet
|
4
|
%
|
|
2
|
%
|
|
Dodge
|
3
|
%
|
|
2
|
%
|
|
Other
domestics
|
3
|
%
|
|
3
|
%
|
|
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," " Adjusted operating margins," 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
|
|
June 30,
2017
|
|
March 31,
2017
|
|
(Dollars in
millions)
|
|
Adjusted leverage
ratio:
|
|
|
|
|
Long-term debt
(including current portion)
|
$
|
919.4
|
|
|
$
|
923.0
|
|
|
|
|
|
|
Calculation of
earnings before interest, taxes, depreciation and amortization
("EBITDA"):
|
|
|
|
|
Income from
continuing operations
|
$
|
165.4
|
|
|
$
|
170.2
|
|
|
|
|
|
|
Add:
|
|
|
|
|
Depreciation and
amortization
|
31.5
|
|
|
31.0
|
|
|
Income tax
expense
|
97.8
|
|
|
100.4
|
|
|
Swap and other
interest expense
|
55.9
|
|
|
56.0
|
|
|
Earnings before
interest, taxes, depreciation and amortization
("EBITDA")
|
$
|
350.6
|
|
|
$
|
357.6
|
|
|
|
|
|
|
Non-core items -
(income) expense:
|
|
|
|
|
Legal
settlements
|
$
|
(7.5)
|
|
|
$
|
(7.5)
|
|
|
Real estate-related
charges
|
5.2
|
|
|
2.3
|
|
|
Gain on
divestitures
|
(45.5)
|
|
|
(45.5)
|
|
|
Investment
income
|
(0.8)
|
|
|
|
|
Total non-core
items
|
(48.6)
|
|
|
(50.7)
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
302.0
|
|
|
$
|
306.9
|
|
|
|
|
|
|
Adjusted leverage
ratio
|
3.0
|
|
|
3.0
|
|
|
|
|
For the Three
Months
Ended June 30,
|
|
2017
|
|
2016
|
|
(In millions,
except per share data)
|
|
Adjusted income from
operations:
|
|
|
|
|
Income from
operations
|
$
|
71.6
|
|
|
$
|
78.1
|
|
|
Real estate-related
charges
|
2.9
|
|
|
—
|
|
|
Investment
income
|
(0.8)
|
|
|
—
|
|
|
Adjusted income from
operations
|
$
|
73.7
|
|
|
$
|
78.1
|
|
|
|
|
|
|
Adjusted income from
continuing operations:
|
|
|
|
|
Income from
continuing operations
|
$
|
31.9
|
|
|
$
|
36.6
|
|
|
|
|
|
|
Non-core items -
(income) expense:
|
|
|
|
|
Real estate-related
charges
|
2.9
|
|
|
—
|
|
|
Investment
income
|
(0.8)
|
|
|
—
|
|
|
Income tax (benefit)
expense on non-core items above
|
(0.8)
|
|
|
—
|
|
|
Total non-core
items
|
1.3
|
|
|
—
|
|
|
Adjusted income from
continuing operations
|
$
|
33.2
|
|
|
$
|
36.6
|
|
|
|
|
|
|
Adjusted diluted
earnings per share (EPS) from continuing operations:
|
|
|
|
|
Net income
|
$
|
1.52
|
|
|
$
|
1.65
|
|
|
Discontinued
operations, net of tax
|
—
|
|
|
—
|
|
|
Income from
continuing operations
|
$
|
1.52
|
|
|
$
|
1.65
|
|
|
|
|
|
|
Total non-core
items
|
0.06
|
|
|
—
|
|
|
Adjusted diluted EPS
from continuing operations
|
$
|
1.58
|
|
|
$
|
1.65
|
|
|
|
|
|
|
Weighted average
common shares outstanding - diluted
|
21.0
|
|
|
22.2
|
|
|
|
|
For the Six
Months
Ended June 30,
|
|
2017
|
|
2016
|
|
(In millions,
except per share data)
|
|
Adjusted income from
operations:
|
|
|
|
|
Income from
operations
|
$
|
143.9
|
|
|
$
|
147.0
|
|
|
Real estate-related
charges
|
2.9
|
|
|
3.4
|
|
|
Investment
income
|
(0.8)
|
|
|
—
|
|
|
Legal
settlements
|
(0.9)
|
|
|
—
|
|
|
Adjusted income from
operations
|
$
|
145.1
|
|
|
$
|
150.4
|
|
|
|
|
|
|
Adjusted income from
continuing operations:
|
|
|
|
|
Income from
continuing operations
|
$
|
65.9
|
|
|
$
|
67.7
|
|
|
|
|
|
|
Non-core items -
(income) expense:
|
|
|
|
|
Real estate-related
charges
|
2.9
|
|
|
3.4
|
|
|
Investment
income
|
(0.8)
|
|
|
—
|
|
|
Legal
settlements
|
(0.9)
|
|
|
—
|
|
|
Income tax (benefit)
expense on non-core items above
|
(0.5)
|
|
|
(1.3)
|
|
|
Total non-core
items
|
0.7
|
|
|
2.1
|
|
|
Adjusted income from
continuing operations
|
$
|
66.6
|
|
|
$
|
69.8
|
|
|
|
|
|
|
Adjusted diluted
earnings per share (EPS) from continuing operations:
|
|
|
|
|
Net income
|
$
|
3.12
|
|
|
$
|
2.91
|
|
|
Discontinued
operations, net of tax
|
—
|
|
|
—
|
|
|
Income from
continuing operations
|
$
|
3.12
|
|
|
$
|
2.91
|
|
|
|
|
|
|
Total non-core
items
|
0.04
|
|
|
0.09
|
|
|
Adjusted diluted EPS
from continuing operations
|
$
|
3.16
|
|
|
$
|
3.00
|
|
|
|
|
|
|
Weighted average
common shares outstanding - diluted
|
21.1
|
|
|
23.3
|
|
View original
content:http://www.prnewswire.com/news-releases/asbury-automotive-group-announces-second-quarter-2017-financial-results-300493259.html
SOURCE Asbury Automotive Group, Inc.