DULUTH, Ga., July 30 /PRNewswire-FirstCall/ -- Asbury Automotive
Group, Inc. (NYSE:ABG), one of the largest automotive retail and
service companies in the U.S., today reported financial results for
the second quarter and six months ended June 30, 2009. Income from
continuing operations for the second quarter was $6.0 million, or
$0.18 per diluted share, compared to $10.9 million, or $0.34 per
diluted share, in the corresponding period last year. Results for
both periods included non-core items that reduced earnings by $0.04
per diluted share, as disclosed in the attached tables. Net income
for the second quarter of 2009 totaled $5.5 million, or $0.17 per
diluted share, compared with $10.4 million, or $0.32 per diluted
share, a year ago. For the first six months of 2009, income from
continuing operations was $7.8 million, or $0.24 per diluted share,
compared with $21.4 million, or $0.66 per diluted share, in the
corresponding period last year. Non-core items, as disclosed in the
attached tables, reduced earnings by $0.04 per diluted share in the
first half of 2009, and by $0.05 per diluted share in the six-month
period a year ago. "We are pleased to report further sequential
improvement in our operating results for the second quarter,
building on the momentum established in the first quarter," said
Charles R. Oglesby, Asbury's President and CEO. "U.S. new vehicle
sales have essentially stabilized, but at a historically low level.
Against this backdrop, we continued to focus on executing our
organizational restructuring and store-level productivity
initiatives, and, on a rolling twelve month basis, reduced same
store SG&A expense by more than $100 million compared to the
prior rolling twelve month period. Also, we have aligned our
inventory levels with the current sales environment. As of June 30,
our new light vehicle inventory was at 69 days' sales and our used
vehicle inventory was at 38 days' sales." Last Friday, Asbury
disclosed that we successfully renegotiated the covenants in our
principal credit facilities. Total leverage ratio covenants have
been permanently removed and fixed charge ratio covenants have been
eased for a period of time. In return, Asbury has agreed to
additional restrictions on new indebtedness and to a reduction in
the amount of its revolving credit facility. Craig T. Monaghan,
Asbury's Senior Vice President and Chief Financial Officer, said,
"Our disciplined working capital management and ongoing
restructuring program continue to strengthen Asbury's liquidity
position. At the end of the quarter, we had $42 million in cash on
hand. As a result of our recent amendments, we have $170 million in
available borrowing capacity under our credit facilities today."
Mr. Monaghan commented, "The continued responsiveness and support
of our financial partners speak volumes about the strength of these
critical relationships. The covenant changes we have negotiated
significantly enhance our financial flexibility during this
challenging sales environment." Mr. Oglesby concluded, "Overall,
Asbury continues to make excellent progress towards its longer-term
goal of creating the optimal operating structure for our company.
With a more streamlined, efficient organization, we will be able to
leverage the inherent strengths of our dealership portfolio more
effectively as vehicle sales recover." Asbury will host a
conference call to discuss its second quarter results this morning
at 10:00 a.m. Eastern Time. The call will be simulcast live on the
Internet and can be accessed by logging onto
http://www.asburyauto.com/ or http://www.ccbn.com/. In addition, a
live audio of the call will be accessible to the public by calling
(877) 874-1586 (domestic), or (719) 325-4758 (international);
passcode - 3624773. Callers should dial in approximately 5 to 10
minutes before the call begins. About Asbury Automotive Group
Asbury Automotive Group, Inc. ("Asbury"), headquartered in Duluth,
Georgia, a suburb of Atlanta, is one of the largest automobile
retailers in the U.S. Built through a combination of organic growth
and a series of strategic acquisitions, Asbury currently operates
84 retail auto stores, encompassing 110 franchises for the sale and
servicing of 37 different brands of American, European and Asian
automobiles. 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" as that term is defined in the Private
Securities Litigation Reform Act of 1995. The forward-looking
statements include statements relating to goals, plans, market
conditions and projections regarding Asbury's financial position,
liquidity, results of operations, market position and dealership
portfolio, the benefits of its restructuring program and
store-level and IT productivity initiatives, ability to structure
the business to be profitable in the current challenging economic
environment, ability to maintain compliance with the covenants in
its debt and lease agreements and future business strategy. These
statements are based on management's current expectations 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 financial stability of,
vehicle manufacturers and other suppliers, risks associated with
Asbury 's indebtedness (including available borrowing capacity and
compliance with its financial covenants), Asbury's relationship
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 and Asbury 's
ability to execute its restructuring programs and IT initiatives
and other operational strategies, Asbury's ability to leverage
gains from its dealership portfolio, 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 are discussed in Asbury's
annual report on Form 10-K and in its other filings with the
Securities and Exchange Commission. We undertake no obligation to
publicly update any forward-looking statement, whether as a result
of new information, future events or otherwise. Investors May
Contact: Ryan Marsh Treasurer (770) 418-8211 Reporters May Contact:
Anuj Baveja RF|Binder Partners (212) 994-7552 ASBURY AUTOMOTIVE
GROUP, INC. CONSOLIDATED STATEMENTS OF INCOME (In millions, except
per share data) (Unaudited) For the Three Months For the Six Months
Ended June 30, Ended June 30,
----------------------------------------- 2009 2008 2009 2008
REVENUES: New vehicle $517.7 $743.7 $958.3 $1,438.4 Used vehicle
242.4 289.2 451.3 587.7 Parts and service 159.7 169.2 321.7 336.6
Finance and insurance, net 22.6 36.8 43.3 73.0 ---- ---- ---- ----
Total revenues 942.4 1,238.9 1,774.6 2,435.7 COST OF SALES: New
vehicle 483.3 693.3 896.5 1,341.6 Used vehicle 222.4 263.9 411.7
535.7 Parts and service 80.8 82.8 163.7 165.8 ---- ---- ----- -----
Total cost of sales 786.5 1,040.0 1,471.9 2,043.1 ----- -------
------- ------- GROSS PROFIT 155.9 198.9 302.7 392.6 OPERATING
EXPENSES: Selling, general and administrative 126.7 156.2 249.7
311.1 Depreciation and amortization 5.9 5.4 12.0 10.5 Other
operating (income) expense, net (0.4) 2.0 (0.8) 1.7 ----- --- -----
--- Income from operations 23.7 35.3 41.8 69.3 OTHER INCOME
(EXPENSE): Floor plan interest expense (4.7) (7.5) (9.6) (15.8)
Other interest expense (9.0) (9.3) (19.0) (18.3) Convertible debt
discount amortization (0.5) (0.8) (0.9) (1.6) Interest income 0.1
0.3 0.1 1.3 --- --- --- --- Total other expense, net (14.1) (17.3)
(29.4) (34.4) ------ ------ ------ ------ Income before income
taxes 9.6 18.0 12.4 34.9 INCOME TAX EXPENSE 3.6 7.1 4.6 13.5 ---
--- --- ---- INCOME FROM CONTINUING OPERATIONS 6.0 10.9 7.8 21.4
DISCONTINUED OPERATIONS, net of tax (0.5) (0.5) (2.0) (0.9) -----
----- ----- ----- NET INCOME $5.5 $10.4 $5.8 $20.5 ==== ===== ====
===== EARNINGS (LOSS) PER COMMON SHARE: BASIC - Continuing
operations $0.19 $0.34 $0.24 $0.68 Discontinued operations (0.02)
(0.01) (0.06) (0.03) ------ ------ ------ ------ Net income $0.17
$0.33 $0.18 $0.65 ===== ===== ===== ===== DILUTED - Continuing
operations $0.18 $0.34 $0.24 $0.66 Discontinued operations (0.01)
(0.02) (0.06) (0.02) ------ ------ ------ ------ Net income $0.17
$0.32 $0.18 $0.64 ===== ===== ===== ===== WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING: Basic 32.2 31.7 32.1 31.6 ==== ==== ==== ====
Diluted 33.2 32.2 33.0 32.2 ==== ==== ==== ==== ASBURY AUTOMOTIVE
GROUP, INC. SELECTED DATA (Dollars in millions, except per vehicle
data) (Unaudited) As Reported for the Three Months Ended June 30,
------------------ Increase 2009 2008 (Decrease) % Change ---- ----
--------- -------- REVENUE: New light vehicles $483.1 $696.1
$(213.0) (31%) New heavy trucks 34.6 47.6 (13.0) (27%) ---- ----
Total new vehicle 517.7 743.7 (226.0) (30%) Used retail 194.9 224.0
(29.1) (13%) Used wholesale 47.5 65.2 (17.7) (27%) ---- ---- Total
used vehicle 242.4 289.2 (46.8) (16%) Parts and service 159.7 169.2
(9.5) (6%) Finance and insurance, net 22.6 36.8 (14.2) (39%) ----
---- Total revenue $942.4 $1,238.9 $(296.5) (24%) ====== ========
GROSS PROFIT New light vehicles $33.0 $48.4 $(15.4) (32%) New heavy
trucks 1.4 2.0 (0.6) (30%) --- --- Total new 34.4 50.4 (16.0) (32%)
Used retail 20.6 25.7 (5.1) (20%) Used wholesale (0.6) (0.4) (0.2)
(50%) ----- ----- Total used vehicle 20.0 25.3 (5.3) (21%) Parts
and service 78.9 86.4 (7.5) (9%) Finance and insurance, net 22.6
36.8 (14.2) (39%) ---- ---- Total gross profit $155.9 $198.9
$(43.0) (22%) ====== ====== VEHICLES SOLD: New light retail
vehicles 15,770 23,371 (7,601) (33%) New fleet vehicles 741 688 53
8% --- --- Total light vehicles 16,511 24,059 (7,548) (31%) New
heavy trucks 508 698 (190) (27%) --- --- Total new vehicle 17,019
24,757 (7,738) (31%) ====== ====== Used retail units 10,655 12,666
(2,011) (16%) ====== ====== REVENUE PER VEHICLE SOLD: New light
vehicles $29,259 $28,933 $326 1% New heavy trucks 68,110 68,195
(85) -% Used retail 18,292 17,685 607 3% GROSS PROFIT PER VEHICLE
SOLD: New light vehicles $1,999 $2,012 $(13) (1%) New heavy trucks
2,756 2,865 (109) (4%) Used retail 1,933 2,029 (96) (5%) Finance
and insurance, net 817 983 (166) (17%) GROSS PROFIT MARGIN: New
light vehicles 6.8% 7.0% (0.2%) (3%) New heavy trucks 4.0% 4.2%
(0.2%) (5%) Used retail 10.6% 11.5% (0.9%) (8%) Parts and service
49.4% 51.1% (1.7%) (3%) ----- ----- Total 16.5% 16.1% 0.4% 2% =====
===== REVENUE MIX PERCENTAGES: New light vehicles 51.3% 56.2% New
heavy trucks 3.7% 3.8% Used retail 20.7% 18.0% Used wholesale 5.0%
5.3% Parts and service 16.9% 13.7% Finance and insurance, net 2.4%
3.0% ---- ---- Total revenue 100.0% 100.0% ====== ====== GROSS
PROFIT MIX PERCENTAGES: New light vehicles 21.2% 24.3% New heavy
trucks 0.9% 1.0% Used retail 13.2% 13.0% Used wholesale (0.4%)
(0.2%) Parts and service 50.6% 43.4% Finance and insurance, net
14.5% 18.5% ----- ----- Total gross profit 100.0% 100.0% ======
====== SG&A EXPENSES AS A PERCENTAGE OF GROSS PROFIT 81.3%
78.5% 2.8 4% ===== ===== Same Store for the Three Months Ended June
30, ------------------ Increase 2009 2008 (Decrease) % Change ----
---- ---------- -------- REVENUE: New light vehicles $482.9 $696.1
$(213.2) (31%) New heavy trucks 34.6 47.6 (13.0) (27%) ---- ----
Total new vehicle 517.5 743.7 (226.2) (30%) Used retail 194.6 224.0
(29.4) (13%) Used wholesale 47.5 65.2 (17.7) (27%) ---- ---- Total
used vehicle 242.1 289.2 (47.1) (16%) Parts and service 159.7 169.2
(9.5) (6%) Finance and insurance, net 22.6 36.8 (14.2) (39%) ----
---- Total revenue $941.9 $1,238.9 $(297.0) (24%) ====== ========
GROSS PROFIT New light vehicles $33.0 $48.4 $(15.4) (32%) New heavy
trucks 1.4 2.0 (0.6) (30%) --- --- Total new 34.4 50.4 (16.0) (32%)
Used retail 20.3 25.7 (5.4) (21%) Used wholesale (0.4) (0.4) - -
----- ----- Total used vehicle 19.9 25.3 (5.4) (21%) Parts and
service 78.9 86.4 (7.5) (9%) Finance and insurance, net 22.6 36.8
(14.2) (39%) ---- ---- Total gross profit $155.8 $198.9 $(43.1)
(22%) ====== ====== VEHICLES SOLD: New light retail vehicles 15,759
23,371 (7,612) (33%) New fleet vehicles 741 688 53 8% --- --- Total
light vehicles 16,500 24,059 (7,559) (31%) New heavy trucks 508 698
(190) (27%) --- --- Total new vehicle 17,008 24,757 (7,749) (31%)
====== ====== Used retail units 10,649 12,666 (2,017) (16%) ======
====== Same Store for the Three Months Ended June 30,
------------------ Increase 2009 2008 (Decrease) % Change ---- ----
---------- -------- REVENUE PER VEHICLE SOLD: New light vehicles
$29,267 $28,933 $334 1% New heavy trucks 68,110 68,195 (85) 0% Used
retail 18,274 17,685 589 3% GROSS PROFIT PER VEHICLE SOLD: New
light vehicles $2,000 $2,012 $(12) (1%) New heavy trucks 2,756
2,865 (109) (4%) Used retail 1,906 2,029 (123) (6%) Finance and
insurance, net 817 983 (166) (17%) GROSS PROFIT MARGIN: New light
vehicles 6.8% 7.0% (0.2%) (3%) New heavy trucks 4.0% 4.2% (0.2%)
(5%) Used retail 10.4% 11.5% (1.1%) (10%) Parts and service 49.4%
51.1% (1.7%) (3%) ----- ----- Total 16.5% 16.1% 0.4% 2% ===== =====
REVENUE MIX PERCENTAGES: New light vehicles 51.3% 56.2% New heavy
trucks 3.7% 3.8% Used retail 20.7% 18.0% Used wholesale 5.0% 5.3%
Parts and service 16.9% 13.7% Finance and insurance, net 2.4% 3.0%
---- ---- Total revenue 100.0% 100.0% ====== ====== Gross profit
mix percentages: New light vehicles 21.2% 24.3% New heavy trucks
0.9% 1.0% Used retail 13.2% 13.0% Used wholesale (0.4%) (0.2%)
Parts and service 50.6% 43.4% Finance and insurance, net 14.5%
18.5% ----- ----- Total gross profit 100.0% 100.0% ====== ======
SG&A EXPENSES AS A PERCENTAGE OF GROSS PROFIT 81.3% 78.5% 2.8
4% ===== ===== ASBURY AUTOMOTIVE GROUP, INC. SELECTED DATA (Dollars
in millions, except per vehicle data) (Unaudited) As Reported for
the Six Months Ended June 30, ------------------- Increase 2009
2008 (Decrease) % Change ---- ---- ---------- -------- REVENUE: New
light vehicles $887.2 $1,354.2 $(467.0) (34%) New heavy trucks 71.1
84.2 (13.1) (16%) ---- ---- Total new vehicle 958.3 1,438.4 (480.1)
(33%) Used retail 366.1 453.4 (87.3) (19%) Used wholesale 85.2
134.3 (49.1) (37%) ---- ----- Total used vehicle 451.3 587.7
(136.4) (23%) Parts and service 321.7 336.6 (14.9) (4%) Finance and
insurance, net 43.3 73.0 (29.7) (41%) ---- ---- Total revenue
$1,774.6 $2,435.7 $(661.1) (27%) ======== ======== GROSS PROFIT New
light vehicles $58.8 $93.1 $(34.3) (37%) New heavy trucks 3.0 3.7
(0.7) (19%) --- --- Total new 61.8 96.8 (35.0) (36%) Used retail
39.9 52.7 (12.8) (24%) Used wholesale (0.3) (0.7) 0.4 57% -----
----- Total used vehicle 39.6 52.0 (12.4) (24%) Parts and service
158.0 170.8 (12.8) (7%) Finance and insurance, net 43.3 73.0 (29.7)
(41%) ---- ---- Total gross profit $302.7 $392.6 $(89.9) (23%)
====== ====== VEHICLES SOLD: New light retail vehicles 28,927
44,310 (15,383) (35%) New fleet vehicles 1,200 2,018 (818) (41%)
----- ----- Total light vehicles 30,127 46,328 (16,201) (35%) New
heavy trucks 1,092 1,305 (213) (16%) ----- ----- Total new vehicle
31,219 47,633 (16,414) (34%) ====== ====== Used retail units 20,343
25,344 (5,001) (20%) ====== ====== REVENUE PER VEHICLE SOLD: New
light vehicles $29,449 $29,231 $218 1% New heavy trucks 65,110
64,521 589 1% Used retail 17,996 17,890 106 1% GROSS PROFIT PER
VEHICLE SOLD: New light vehicles $1,952 $2,010 $(58) (3%) New heavy
trucks 2,747 2,835 (88) (3%) Used retail 1,961 2,079 (118) (6%)
Finance and insurance, net 840 1,000 (160) (16%) GROSS PROFIT
MARGIN: New light vehicles 6.6% 6.9% (0.3%) (4%) New heavy trucks
4.2% 4.4% (0.2%) (5%) Used retail 10.9% 11.6% (0.7%) (6%) Parts and
service 49.1% 50.7% (1.6%) (3%) ----- ----- Total 17.1% 16.1% 1% 6%
===== ===== REVENUE MIX PERCENTAGES: New light vehicles 50.0% 55.6%
New heavy trucks 4.0% 3.5% Used retail 20.7% 18.6% Used wholesale
4.8% 5.5% Parts and service 18.1% 13.8% Finance and insurance, net
2.4% 3.0% ---- ---- Total revenue 100.0% 100.0% ====== ====== GROSS
PROFIT MIX PERCENTAGES: New light vehicles 19.4% 23.7% New heavy
trucks 1.0% 0.9% Used retail 13.2% 13.5% Used wholesale (0.1%)
(0.2%) Parts and service 52.2% 43.5% Finance and insurance, net
14.3% 18.6% ----- ----- Total gross profit 100.0% 100.0% ======
====== SG&A EXPENSES AS A PERCENTAGE OF GROSS PROFIT 82.5%
79.2% 3.3 4% ===== ===== Same Store for the Six Months Ended June
30, ------------------- Increase 2009 2008 (Decrease) % Change ----
---- ---------- -------- REVENUE: New light vehicles $881.2
$1,354.2 $(473.0) (35%) New heavy trucks 71.1 84.2 (13.1) (16%)
---- ---- Total new vehicle 952.3 1,438.4 (486.1) (34%) Used retail
364.1 453.4 (89.3) (20%) Used wholesale 84.5 134.3 (49.8) (37%)
---- ----- Total used vehicle 448.6 587.7 (139.1) (24%) Parts and
service 319.4 336.6 (17.2) (5%) Finance and insurance, net 43.0
73.0 (30.0) (41%) ---- ---- Total revenue $1,763.3 $2,435.7
$(672.4) (28%) ======== ======== GROSS PROFIT New light vehicles
$58.4 $93.1 $(34.7) (37%) New heavy trucks 3.0 3.7 (0.7) (19%) ---
--- Total new 61.4 96.8 (35.4) (37%) Used retail 39.7 52.7 (13.0)
(25%) Used wholesale (0.3) (0.7) 0.4 57% ----- ----- Total used
vehicle 39.4 52.0 (12.6) (24%) Parts and service 156.9 170.8 (13.9)
(8%) Finance and insurance, net 43.0 73.0 (30.0) (41%) ---- ----
Total gross profit $300.7 $392.6 $(91.9) (23%) ====== ======
VEHICLES SOLD: New light retail vehicles 28,676 44,310 (15,634)
(35%) New fleet vehicles 1,200 2,018 (818) (41%) ----- ----- Total
light vehicles 29,876 46,328 (16,452) (36%) New heavy trucks 1,092
1,305 (213) (16%) ----- ----- Total new vehicle 30,968 47,633
(16,665) (35%) ====== ====== Used retail units 20,210 25,344
(5,134) (20%) ====== ====== Same Store for the Six Months Ended
June 30, ----------------- Increase 2009 2008 (Decrease) % Change
---- ---- ---------- -------- REVENUE PER VEHICLE SOLD: New light
vehicles $29,495 $29,231 $264 1% New heavy trucks 65,100 64,521 579
1% Used retail 18,016 17,890 126 1% GROSS PROFIT PER VEHICLE SOLD:
New light vehicles $1,955 $2,010 $(55) (3%) New heavy trucks 2,747
2,835 (88) (3%) Used retail 1,964 2,079 (115) (6%) Finance and
insurance, net 840 1,000 (160) (16%) GROSS PROFIT MARGIN: New light
vehicles 6.6% 6.9% (0.3%) (4%) New heavy trucks 4.2% 4.4% (0.2%)
(5%) Used retail 10.9% 11.6% (0.7%) (6%) Parts and service 49.1%
50.7% (1.6%) (3%) ----- ----- Total 17.1% 16.1% 1.0% 6% ===== =====
REVENUE MIX PERCENTAGES: New light vehicles 50.0% 55.6% New heavy
trucks 4.0% 3.5% Used retail 20.7% 18.6% Used wholesale 4.8% 5.5%
Parts and service 18.1% 13.8% Finance and insurance, net 2.4% 3.0%
---- ---- Total revenue 100.0% 100.0% ====== ====== Gross profit
mix percentages: New light vehicles 19.4% 23.7% New heavy trucks
1.0% 0.9% Used retail 13.2% 13.5% Used wholesale (0.1%) (0.2%)
Parts and service 52.2% 43.5% Finance and insurance, net 14.3%
18.6% ----- ----- Total gross profit 100.0% 100.0% ====== ======
SG&A EXPENSES AS A PERCENTAGE OF GROSS PROFIT 82.6% 79.2% 3.4
4% ===== ===== ASBURY AUTOMOTIVE GROUP, INC. Selected Balance Sheet
Data (In millions) (Unaudited) June 30, December 31, Increase %
Change 2009 2008 (Decrease) ------- ----------- --------- ---------
Selected Balance Sheet Data Cash and cash equivalents $41.9 $91.6
$(49.7) (54.3%) New vehicle inventory 414.6 562.2 (147.6) (26.3%)
Used vehicle inventory 71.0 59.9 11.1 18.5% Parts inventory 43.7
44.5 (0.8) (1.8%) Total current assets 821.3 1,019.7 (198.4)
(19.5%) Floor plan notes payable 456.1 612.8 (156.7) (25.6%) Total
current liabilities 626.5 854.5 (228.0) (26.7%) CAPITALIZATION:
Long-term debt (including current portion) $547.5 $599.7 $(52.2)
(8.7%) Shareholders' equity 233.3 226.6 6.7 3.0% ----- ----- ---
--- Total $780.8 $826.3 $(45.5) (5.5%) Brand Mix - New Light
Vehicle by Revenue For the Six Months Ended June 30,
------------------- 2009 2008 ---- ---- Luxury BMW 10% 9%
Mercedes-Benz 6% 6% Lexus 5% 6% Acura 4% 5% Infiniti 4% 4% Other
luxury 5% 5% ---- ---- Total luxury 34% 35% Mid-Line Imports: Honda
27% 28% Toyota 10% 10% Nissan 12% 12% Other imports 4% 3% ---- ----
Total imports 53% 53% Mid-Line Domestic: Ford 7% 5% General motors
2% 3% Chrysler 3% 3% ---- ---- Total domestic 12% 11% Value 1% 1%
---- ---- Total Light Vehicles 100% 100% ==== ==== Asbury
Automotive Group, Inc. Supplemental Disclosures Regarding Non-GAAP
Financial Information (Dollars in millions, except per share data)
(Unaudited) Our operations during the first six months of 2009 and
2008 were impacted by certain items that are not core dealership
operating items, which we believe are important to highlight when
reviewing our results and should not be considered when forecasting
our future results. The non-core items shown in the table below
include (i) restructuring costs consisting primarily of severance
and retention expenses related to the relocation of our corporate
headquarters and the elimination of our regional management
structure, (ii) executive separation benefits in 2008 related to
the departure of our former chief financial officer, (iii)
implementation costs associated with transitioning our dealerships
to DealerTrack's Arkona dealer management system and (iv) a legal
settlements benefit in 2009 related to legal claims arising in, and
before, the year 2003. For the Three Months Ended June 30,
--------------- 2009 2008 ---- ---- Non-core items - (income)
expense Restructuring costs $1.7 $0.3 Executive separation benefits
expense - 1.7 Dealer management system implementation costs 0.1 0.3
Tax benefit of non-core items above (0.6) (0.9) Total $1.2 $1.4
Non-core items per dilutive share $0.04 $0.04 Weighted average
common shares outstanding (diluted) 33.2 32.2 As Reported for the
Six Months Ended June 30, -------------------- 2009 2008 -------
------- Non-core items - (income) expense Restructuring costs $3.0
$0.3 Executive separation benefits expense - 1.7 Dealer management
system implementation costs 0.3 0.6 Legal settlements benefit (1.5)
- Tax benefit of non-core items above (0.6) (1.0) Total $1.2 $1.6
Non-core items per dilutive share $0.04 $0.05 Weighted average
common shares outstanding (diluted) 33.0 32.2 Asbury Automotive
Group, Inc. Summary of Debt Covenants As of and for the Period
Ended June 30, 2009 (Dollars in millions, except per vehicle data)
(Unaudited) Wachovia Credit Mortgages Facilities ---------
---------- Senior Leverage Ratio must be < 3.00 SECURED DEBT
(numerator) + Mortgage notes payable (including mortgages
associated with assets held for sale) $182.1 + Borrowings under
Revolving Credit Facility - + Capital lease obligations 0.2 +
Interest rate SWAP obligations - + Other indebtedness 0.1 = TOTAL
SECURED DEBT (ex floorplan) $182.4 EBITDA (denominator) + Income
from continuing operations - trailing 12 months ("T12") $(342.3) +
Add back Total interest expense (ex floorplan interest) - T12 43.0
+ Add back Income tax expense - T12 (146.0) + Add back Depreciation
& amortization - T12 24.3 + Add back Accounting changes from
gain on debt repurchase 6.3 + Add back Other non-cash charges - T12
540.1 = CONSOLIDATED EBITDA 125.4 + Add back Pro forma acquisitions
EBITDA (as defined) - + Add back Pro forma rent savings (as
defined) - = CONSOLIDATED PROFORMA EBITDA $125.4 SENIOR LEVERAGE
RATIO 1.45 Total Leverage Ratio must be < 5.00 TOTAL DEBT
(numerator) + 8.0% Sr. Subordinated Notes (face value outstanding)
$179.4 $179.4 + 7.625% Sr. Subordinated Notes 143.2 143.2 + 3.0%
Convertible Notes 62.0 62.0 + Mortgage notes payable (including
mortgages associated with assets held for sale) 182.1 182.1 +
Borrowings under Revolving Credit Facility - - + Direct
reimbursement obligations under letters of credit 11.4 - + Capital
lease obligations 0.2 0.2 + Interest rate SWAP obligations 8.4 - +
Other indebtedness (as defined) 1.8 0.1 = TOTAL DEBT (ex Floorplan)
$588.5 $567.0 EBITDA (denominator) + Income from continuing
operations - trailing 12 months ("T12") $(342.3) $(342.3) + Add
back Total interest expense (ex floorplan) - T12 43.0 43.0 + Add
back Income tax expense - T12 (146.0) (146.0) + Add back
Depreciation & amortization - T12 24.3 24.3 + Add back
Accounting changes from gain on debt repurchase 6.3 6.3 + Add back
Other non-cash charges - T12 546.4 540.1 + Add back Non-recurring
items - T12 11.0 - = CONSOLIDATED EBITDA 142.7 125.4 + Add back Pro
forma acquisitions EBITDA (as defined) - - + Add back Pro forma
rent savings (as defined) - - = CONSOLIDATED PROFORMA EBITDA $142.7
$125.4 TOTAL LEVERAGE RATIO 4.12 4.52 Fixed Charge Coverage Ratio
must be > 1.2 EBITDAR (numerator) + Income from continuing
operations - trailing 12 months ("T12") $(342.3) $(342.3) + Add
back Total interest expense (ex floorplan) - T12 43.0 43.0 + Add
back Income tax expense - T12 (146.0) (146.0) + Add back
Depreciation & amortization - T12 24.3 24.3 + Add back
Accounting changes from gain on debt repurchase 6.3 6.3 + Add back
Other non-cash charges - T12 (as defined) 546.4 540.1 + Add back
Non-recurring items - T12 (as defined) 11.0 - = CONSOLIDATED EBITDA
142.7 125.4 + PLUS Required principal payments - T12 41.3 41.3 -
LESS Capital expenditures (as defined) (16.8) (12.5) = TOTAL
EARNINGS AVAILABLE FOR FIXED CHARGES $167.2 $154.2 FIXED CHARGES
(denominator) + Total interest expense (ex Floorplan Interest) -
T12 $43.0 $43.0 - LESS rest associated with convertible notes - T12
(2.4) (2.4) + PLUS Required principal payments - T12 8.8 8.8 + PLUS
Rental expense - T12 41.3 41.3 - LESS Pro forma rent savings (as
defined) - - + PLUS Cash paid for taxes - T12 3.7 3.7 = TOTAL FIXED
CHARGES $94.4 $94.4 FIXED CHARGE COVERAGE RATIO 1.77 1.63 Current
Ratio must be > 1.2 Total current assets (numerator) + Total
current assets $821.3 $821.3 + PLUS Available unused commitments
under Revolving Credit Facility 125.0 135.9 = TOTAL CURRENT ASSETS
$946.3 $957.2 Total current liabilities (denominator) + Total
current liabilities $626.5 $626.5 - LESS Debt balloon payments due
within 6-12 months - - = TOTAL CURRENT LIABILITIES $626.5 $626.5
CURRENT RATIO 1.51 1.53 Adjusted Net Worth must be > $350
million Stockholders' equity $233.3 - LESS 50% of net income
subsequent to June 30, 2008 (to the extent net income is positive)
- - LESS Proceeds from stock option exercises subsequent to June
30, 2008 (0.1) + ADD Impairment expenses, net of tax 383.0 =
ADJUSTED NET WORTH $616.2 DATASOURCE: Asbury Automotive Group, Inc.
CONTACT: Investors, Ryan Marsh, Treasurer of Asbury Automotive
Group, Inc., +1-770-418-8211, , or Reporters, Anuj Baveja of
RF|Binder Partners, +1-212-994-7552, Web Site:
http://www.asburyauto.com/
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