DULUTH, Ga., Oct. 22, 2019 /PRNewswire/ -- Asbury
Automotive Group, Inc. (NYSE: ABG), one of the largest automotive
retail and service companies in the U.S., reported net income for
the third quarter 2019 of $45.0
million ($2.33 per diluted
share). There were no adjustments in the third quarter. This
compares to net income of $44.3
million ($2.18 per diluted
share) in the prior year quarter and adjusted net income of
$44.9 million ($2.21 per diluted share).
Net income for the third quarter 2018 was adjusted for a 2017
Tax Act adjustment of $0.6 million
($0.03 per diluted share).
"We delivered a very strong quarter. We grew revenue 5%,
delivered 9% parts and service gross profit growth, grew F&I
gross profit by 10%, and grew adjusted EPS 5%," said David Hult, Asbury's President and Chief
Executive Officer. "During the quarter, we expanded our business by
acquiring a Toyota store in Indianapolis and a Subaru store in
Denver. We expect these stores to
generate approximately $175 million
in combined annual revenues."
Third Quarter 2019 Operational Summary
Total company:
- Total revenue increased 5%; gross profit increased 5%
- Gross margin increased 10 basis points to 15.9%
- SG&A as a percentage of gross profit increased 100 basis
points to 68.9%
- Adjusted operating margin 4.5%
- Adjusted EPS from continuing operations increased 5%
Same store:
- Total revenue increased 2%; gross profit increased 3%
- Gross margin increased 20 basis points to 16.0%
- New vehicle revenue decreased 3%; gross profit decreased
12%
- Used vehicle retail revenue increased 9%; gross profit
decreased 1%
- Finance and insurance revenue and gross profit increased
8%
- Parts and service revenue increased 8%; gross profit increased
7%
Strategic Highlights:
- Acquired a Toyota store in the Indianapolis market and a Subaru store in the
Colorado market. We expect these
stores to generate approximately $175
million in combined annual revenues.
- Repurchased $4 million of common
stock
Additional commentary regarding the third quarter results will
be provided during the earnings conference call on October 22, 2019 at 10:00 a.m. The
conference call will be simulcast live on the internet and can be
accessed at www.asburyauto.com. A replay will be available at
these sites for 30 days.
In addition, a live audio of the call will be accessible to the
public by calling (323) 994-2093 (domestic), or (866) 575-6539
(international); passcode - 3004343. 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 -
3004343.
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 88 dealerships, consisting of 107 franchises,
representing 31 domestic and foreign brands of vehicles.
Asbury also operates 25 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 September 30,
|
|
Increase
(Decrease)
|
|
%
Change
|
|
2019
|
|
2018
|
|
|
|
REVENUE:
|
|
|
|
|
|
|
|
|
New
vehicle
|
$
|
986.9
|
|
|
$
|
980.5
|
|
|
$
|
6.4
|
|
|
1
|
%
|
|
Used
vehicle:
|
|
|
|
|
|
|
|
|
Retail
|
505.0
|
|
|
448.7
|
|
|
56.3
|
|
|
13
|
%
|
|
Wholesale
|
41.9
|
|
|
48.8
|
|
|
(6.9)
|
|
|
(14)
|
%
|
|
Total used
vehicle
|
546.9
|
|
|
497.5
|
|
|
49.4
|
|
|
10
|
%
|
|
Parts and
service
|
227.6
|
|
|
206.1
|
|
|
21.5
|
|
|
10
|
%
|
|
Finance and
insurance, net
|
80.6
|
|
|
73.3
|
|
|
7.3
|
|
|
10
|
%
|
|
TOTAL
REVENUE
|
1,842.0
|
|
|
1,757.4
|
|
|
84.6
|
|
|
5
|
%
|
|
GROSS
PROFIT:
|
|
|
|
|
|
|
|
|
New
vehicle
|
38.6
|
|
|
42.1
|
|
|
(3.5)
|
|
|
(8)
|
%
|
|
Used
vehicle:
|
|
|
|
|
|
|
|
|
Retail
|
33.9
|
|
|
32.7
|
|
|
1.2
|
|
|
4
|
%
|
|
Wholesale
|
(1.5)
|
|
|
0.1
|
|
|
(1.6)
|
|
|
NM
|
|
|
Total used
vehicle
|
32.4
|
|
|
32.8
|
|
|
(0.4)
|
|
|
(1)
|
%
|
|
Parts and
service
|
141.5
|
|
|
129.8
|
|
|
11.7
|
|
|
9
|
%
|
|
Finance and
insurance, net
|
80.6
|
|
|
73.3
|
|
|
7.3
|
|
|
10
|
%
|
|
TOTAL GROSS
PROFIT
|
293.1
|
|
|
278.0
|
|
|
15.1
|
|
|
5
|
%
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
202.0
|
|
|
188.8
|
|
|
13.2
|
|
|
7
|
%
|
|
Depreciation and
amortization
|
9.1
|
|
|
8.5
|
|
|
0.6
|
|
|
7
|
%
|
|
Other operating
(income) expenses, net
|
(0.2)
|
|
|
(0.1)
|
|
|
(0.1)
|
|
|
(100)
|
%
|
|
INCOME FROM
OPERATIONS
|
82.2
|
|
|
80.8
|
|
|
1.4
|
|
|
2
|
%
|
|
OTHER EXPENSES
(INCOME):
|
|
|
|
|
|
|
|
|
Floor plan interest
expense
|
9.0
|
|
|
8.4
|
|
|
0.6
|
|
|
7
|
%
|
|
Other interest
expense, net
|
13.7
|
|
|
13.2
|
|
|
0.5
|
|
|
4
|
%
|
|
Swap interest
expense
|
—
|
|
|
0.1
|
|
|
(0.1)
|
|
|
—
|
%
|
|
Total other expenses,
net
|
22.7
|
|
|
21.7
|
|
|
1.0
|
|
|
5
|
%
|
|
INCOME BEFORE INCOME
TAXES
|
59.5
|
|
|
59.1
|
|
|
0.4
|
|
|
1
|
%
|
|
Income tax
expense
|
14.5
|
|
|
14.8
|
|
|
(0.3)
|
|
|
(2)
|
%
|
|
NET INCOME
|
$
|
45.0
|
|
|
$
|
44.3
|
|
|
$
|
0.7
|
|
|
2
|
%
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
Basic—
|
|
|
|
|
|
|
|
|
Net income
|
$
|
2.36
|
|
|
$
|
2.22
|
|
|
$
|
0.14
|
|
|
6
|
%
|
|
Diluted—
|
|
|
|
|
|
|
|
|
Net income
|
$
|
2.33
|
|
|
$
|
2.18
|
|
|
$
|
0.15
|
|
|
7
|
%
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
19.1
|
|
|
20.0
|
|
|
(0.9)
|
|
|
(5)
|
%
|
|
Restricted
stock
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
%
|
|
Performance share
units
|
0.1
|
|
|
0.2
|
|
|
(0.1)
|
|
|
(50)
|
%
|
|
Diluted
|
19.3
|
|
|
20.3
|
|
|
(1.0)
|
|
|
(5)
|
%
|
|
______________________________
|
|
NM—Not
Meaningful
|
|
ASBURY AUTOMOTIVE
GROUP, INC.
KEY OPERATING
HIGHLIGHTS (In millions, except per unit data)
(Unaudited)
|
|
|
For the Three
Months
Ended September 30,
|
|
Increase
(Decrease)
|
|
%
Change
|
|
2019
|
|
2018
|
|
|
|
Unit
sales
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
6,025
|
|
|
5,685
|
|
|
340
|
|
|
6
|
%
|
|
Import
|
15,998
|
|
|
17,046
|
|
|
(1,048)
|
|
|
(6)
|
%
|
|
Domestic
|
5,055
|
|
|
5,019
|
|
|
36
|
|
|
1
|
%
|
|
Total new vehicle
|
27,078
|
|
|
27,750
|
|
|
(672)
|
|
|
(2)
|
%
|
|
Used vehicle
retail
|
22,988
|
|
|
20,824
|
|
|
2,164
|
|
|
10
|
%
|
|
Used to new
ratio
|
84.9
|
%
|
|
75.0
|
%
|
|
990 bps
|
|
|
|
|
Average selling
price
|
|
|
|
|
|
|
|
|
New
vehicle
|
$
|
36,447
|
|
|
$
|
35,333
|
|
|
$
|
1,114
|
|
|
3
|
%
|
|
Used vehicle
retail
|
21,968
|
|
|
21,547
|
|
|
421
|
|
|
2
|
%
|
|
Average gross
profit per unit
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
$
|
3,270
|
|
|
$
|
3,272
|
|
|
$
|
(2)
|
|
|
—
|
%
|
|
Import
|
638
|
|
|
903
|
|
|
(265)
|
|
|
(29)
|
%
|
|
Domestic
|
1,721
|
|
|
1,614
|
|
|
107
|
|
|
7
|
%
|
|
Total new
vehicle
|
1,426
|
|
|
1,517
|
|
|
(91)
|
|
|
(6)
|
%
|
|
Used vehicle
retail
|
1,475
|
|
|
1,570
|
|
|
(95)
|
|
|
(6)
|
%
|
|
Finance and
insurance, net
|
1,610
|
|
|
1,509
|
|
|
101
|
|
|
7
|
%
|
|
Front end yield
(1)
|
3,058
|
|
|
3,049
|
|
|
9
|
|
|
—
|
%
|
|
Gross
margin
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
6.1
|
%
|
|
6.2
|
%
|
|
(10) bps
|
|
|
|
|
Import
|
2.2
|
%
|
|
3.2
|
%
|
|
(100) bps
|
|
|
|
|
Domestic
|
4.2
|
%
|
|
4.1
|
%
|
|
10 bps
|
|
|
|
|
Total new
vehicle
|
3.9
|
%
|
|
4.3
|
%
|
|
(40) bps
|
|
|
|
|
Used vehicle
retail
|
6.7
|
%
|
|
7.3
|
%
|
|
(60) bps
|
|
|
|
|
Parts and
service
|
62.2
|
%
|
|
63.0
|
%
|
|
(80) bps
|
|
|
|
|
Total gross profit
margin
|
15.9
|
%
|
|
15.8
|
%
|
|
10 bps
|
|
|
|
|
SG&A
metrics
|
|
|
|
|
|
|
|
|
Rent
expense
|
$
|
6.7
|
|
|
$
|
6.4
|
|
|
$
|
0.3
|
|
|
5
|
%
|
|
Total SG&A as a
percentage of gross profit
|
68.9
|
%
|
|
67.9
|
%
|
|
100 bps
|
|
|
|
|
SG&A, excluding
rent expense as a percentage of gross profit
|
66.6
|
%
|
|
65.6
|
%
|
|
100 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
|
28.0
|
%
|
|
29.1
|
%
|
|
(110) bps
|
|
|
|
|
Adjusted income from
operations as a percentage of revenue
|
4.5
|
%
|
|
4.6
|
%
|
|
(10) bps
|
|
|
|
|
Adjusted income from
operations as a percentage of gross profit
|
28.0
|
%
|
|
29.1
|
%
|
|
(110) bps
|
|
|
|
|
Revenue
mix
|
|
|
|
|
|
|
|
|
New
vehicle
|
53.6
|
%
|
|
55.8
|
%
|
|
|
|
|
|
Used vehicle
retail
|
27.3
|
%
|
|
25.5
|
%
|
|
|
|
|
|
Used vehicle
wholesale
|
2.3
|
%
|
|
2.8
|
%
|
|
|
|
|
|
Parts and
service
|
12.4
|
%
|
|
11.7
|
%
|
|
|
|
|
|
Finance and
insurance
|
4.4
|
%
|
|
4.2
|
%
|
|
|
|
|
|
Total revenue
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
Gross profit
mix
|
|
|
|
|
|
|
|
|
New
vehicle
|
13.2
|
%
|
|
15.1
|
%
|
|
|
|
|
|
Used vehicle
retail
|
11.5
|
%
|
|
11.8
|
%
|
|
|
|
|
|
Used vehicle
wholesale
|
(0.5)
|
%
|
|
—
|
%
|
|
|
|
|
|
Parts and
service
|
48.3
|
%
|
|
46.7
|
%
|
|
|
|
|
|
Finance and
insurance
|
27.5
|
%
|
|
26.4
|
%
|
|
|
|
|
|
Total gross
profit
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
_____________________________
|
|
(1)
|
Front end yield is
calculated as gross profit from new vehicles, used retail vehicles
and finance and insurance (net), divided by combined new and used
retail unit sales.
|
|
ASBURY AUTOMOTIVE
GROUP, INC.
SAME STORE OPERATING
HIGHLIGHTS (In millions)
(Unaudited)
|
|
|
For the Three
Months
Ended September 30,
|
|
Increase
(Decrease)
|
|
%
Change
|
|
2019
|
|
2018
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
$
|
323.1
|
|
|
$
|
297.8
|
|
|
$
|
25.3
|
|
|
8
|
%
|
|
Import
|
450.8
|
|
|
474.0
|
|
|
(23.2)
|
|
|
(5)
|
%
|
|
Domestic
|
169.2
|
|
|
197.5
|
|
|
(28.3)
|
|
|
(14)
|
%
|
|
Total new vehicle
|
943.1
|
|
|
969.3
|
|
|
(26.2)
|
|
|
(3)
|
%
|
|
Used
Vehicle:
|
|
|
|
|
|
|
|
|
Retail
|
481.7
|
|
|
442.4
|
|
|
39.3
|
|
|
9
|
%
|
|
Wholesale
|
40.5
|
|
|
47.5
|
|
|
(7.0)
|
|
|
(15)
|
%
|
|
Total used
vehicle
|
522.2
|
|
|
489.9
|
|
|
32.3
|
|
|
7
|
%
|
|
Parts and
service
|
220.8
|
|
|
203.8
|
|
|
17.0
|
|
|
8
|
%
|
|
Finance and
insurance
|
77.8
|
|
|
72.2
|
|
|
5.6
|
|
|
8
|
%
|
|
Total
revenue
|
$
|
1,763.9
|
|
|
$
|
1,735.2
|
|
|
$
|
28.7
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
$
|
19.7
|
|
|
$
|
18.7
|
|
|
$
|
1.0
|
|
|
5
|
%
|
|
Import
|
10.1
|
|
|
14.8
|
|
|
(4.7)
|
|
|
(32)
|
%
|
|
Domestic
|
6.9
|
|
|
8.1
|
|
|
(1.2)
|
|
|
(15)
|
%
|
|
Total new vehicle
|
36.7
|
|
|
41.6
|
|
|
(4.9)
|
|
|
(12)
|
%
|
|
Used
Vehicle:
|
|
|
|
|
|
|
|
|
Retail
|
32.0
|
|
|
32.4
|
|
|
(0.4)
|
|
|
(1)
|
%
|
|
Wholesale
|
(1.5)
|
|
|
0.2
|
|
|
(1.7)
|
|
|
NM
|
|
|
Total used
vehicle
|
30.5
|
|
|
32.6
|
|
|
(2.1)
|
|
|
(6)
|
%
|
|
Parts and
service:
|
|
|
|
|
|
|
|
|
Customer
pay
|
77.0
|
|
|
72.2
|
|
|
4.8
|
|
|
7
|
%
|
|
Warranty
|
21.6
|
|
|
19.1
|
|
|
2.5
|
|
|
13
|
%
|
|
Wholesale
parts
|
5.8
|
|
|
5.5
|
|
|
0.3
|
|
|
5
|
%
|
|
Parts and service, excluding
reconditioning and preparation
|
104.4
|
|
|
96.8
|
|
|
7.6
|
|
|
8
|
%
|
|
Reconditioning and
preparation
|
32.6
|
|
|
31.5
|
|
|
1.1
|
|
|
3
|
%
|
|
Total parts and
service
|
137.0
|
|
|
128.3
|
|
|
8.7
|
|
|
7
|
%
|
|
Finance and
insurance
|
77.8
|
|
|
72.2
|
|
|
5.6
|
|
|
8
|
%
|
|
Total gross
profit
|
$
|
282.0
|
|
|
$
|
274.7
|
|
|
$
|
7.3
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
SG&A
expense
|
$
|
194.6
|
|
|
$
|
186.2
|
|
|
$
|
8.4
|
|
|
5
|
%
|
|
SG&A expense as a
percentage of gross profit
|
69.0
|
%
|
|
67.8
|
%
|
|
120 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 September 30,
|
|
Increase
(Decrease)
|
|
%
Change
|
|
2019
|
|
2018
|
|
|
|
Unit
sales
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
5,993
|
|
|
5,685
|
|
|
308
|
|
|
5
|
%
|
|
Import
|
15,828
|
|
|
16,619
|
|
|
(791)
|
|
|
(5)
|
%
|
|
Domestic
|
4,165
|
|
|
5,019
|
|
|
(854)
|
|
|
(17)
|
%
|
|
Total new vehicle
|
25,986
|
|
|
27,323
|
|
|
(1,337)
|
|
|
(5)
|
%
|
|
Used vehicle
retail
|
21,810
|
|
|
20,511
|
|
|
1,299
|
|
|
6
|
%
|
|
Used to new
ratio
|
83.9
|
%
|
|
75.1
|
%
|
|
880 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling
price
|
|
|
|
|
|
|
|
|
New
vehicle
|
$
|
36,293
|
|
|
$
|
35,476
|
|
|
$
|
817
|
|
|
2
|
%
|
|
Used vehicle
retail
|
22,086
|
|
|
21,569
|
|
|
517
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
Average gross
profit per unit
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
$
|
3,287
|
|
|
$
|
3,289
|
|
|
$
|
(2)
|
|
|
—
|
%
|
|
Import
|
638
|
|
|
891
|
|
|
(253)
|
|
|
(28)
|
%
|
|
Domestic
|
1,657
|
|
|
1,614
|
|
|
43
|
|
|
3
|
%
|
|
Total new
vehicle
|
1,412
|
|
|
1,523
|
|
|
(111)
|
|
|
(7)
|
%
|
|
Used vehicle
retail
|
1,467
|
|
|
1,580
|
|
|
(113)
|
|
|
(7)
|
%
|
|
Finance and
insurance, net
|
1,628
|
|
|
1,509
|
|
|
119
|
|
|
8
|
%
|
|
Front end yield
(1)
|
3,065
|
|
|
3,056
|
|
|
9
|
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
6.1
|
%
|
|
6.3
|
%
|
|
(20) bps
|
|
|
|
|
Import
|
2.2
|
%
|
|
3.1
|
%
|
|
(90) bps
|
|
|
|
|
Domestic
|
4.1
|
%
|
|
4.1
|
%
|
|
—bps
|
|
|
|
|
Total new
vehicle
|
3.9
|
%
|
|
4.3
|
%
|
|
(40) bps
|
|
|
|
|
Used vehicle
retail
|
6.6
|
%
|
|
7.3
|
%
|
|
(70) bps
|
|
|
|
|
Parts and
service:
|
|
|
|
|
|
|
|
|
Parts and service,
excluding reconditioning and preparation
|
47.3
|
%
|
|
47.5
|
%
|
|
(20) bps
|
|
|
|
|
Parts and service,
including reconditioning and preparation
|
62.0
|
%
|
|
63.0
|
%
|
|
(100) bps
|
|
|
|
|
Total gross profit
margin
|
16.0
|
%
|
|
15.8
|
%
|
|
20 bps
|
|
|
|
|
_____________________________
|
|
Same store amounts
consist of information from dealerships for identical months in
each comparative period, commencing with the first month we owned
the dealership. Additionally, amounts related to divested
dealerships are excluded from each comparative period.
|
|
|
(1) Front end
yield is calculated as gross profit from new vehicles, used retail
vehicles and finance and insurance (net),
|
|
divided by combined
new and used retail unit sales.
|
|
ASBURY AUTOMOTIVE
GROUP, INC.
CONSOLIDATED
STATEMENTS OF INCOME (In millions, except per share
data)
(Unaudited)
|
|
|
For the Nine
Months
Ended September 30,
|
|
Increase
(Decrease)
|
|
%
Change
|
|
2019
|
|
2018
|
|
|
|
REVENUE:
|
|
|
|
|
|
|
|
|
New
vehicle
|
$
|
2,823.9
|
|
|
$
|
2,766.3
|
|
|
$
|
57.6
|
|
|
2
|
%
|
|
Used
vehicle:
|
|
|
|
|
|
|
|
|
Retail
|
1,449.8
|
|
|
1,355.4
|
|
|
94.4
|
|
|
7
|
%
|
|
Wholesale
|
140.6
|
|
|
143.6
|
|
|
(3.0)
|
|
|
(2)
|
%
|
|
Total used
vehicle
|
1,590.4
|
|
|
1,499.0
|
|
|
91.4
|
|
|
6
|
%
|
|
Parts and
service
|
669.7
|
|
|
609.9
|
|
|
59.8
|
|
|
10
|
%
|
|
Finance and
insurance, net
|
232.3
|
|
|
215.0
|
|
|
17.3
|
|
|
8
|
%
|
|
TOTAL
REVENUE
|
5,316.3
|
|
|
5,090.2
|
|
|
226.1
|
|
|
4
|
%
|
|
GROSS
PROFIT:
|
|
|
|
|
|
|
|
|
New
vehicle
|
114.8
|
|
|
121.3
|
|
|
(6.5)
|
|
|
(5)
|
%
|
|
Used
vehicle:
|
|
|
|
|
|
|
|
|
Retail
|
102.2
|
|
|
98.5
|
|
|
3.7
|
|
|
4
|
%
|
|
Wholesale
|
0.6
|
|
|
1.9
|
|
|
(1.3)
|
|
|
(68)
|
%
|
|
Total used
vehicle
|
102.8
|
|
|
100.4
|
|
|
2.4
|
|
|
2
|
%
|
|
Parts and
service
|
417.4
|
|
|
384.5
|
|
|
32.9
|
|
|
9
|
%
|
|
Finance and
insurance, net
|
232.3
|
|
|
215.0
|
|
|
17.3
|
|
|
8
|
%
|
|
TOTAL GROSS
PROFIT
|
867.3
|
|
|
821.2
|
|
|
46.1
|
|
|
6
|
%
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
593.7
|
|
|
563.6
|
|
|
30.1
|
|
|
5
|
%
|
|
Depreciation and
amortization
|
26.7
|
|
|
25.2
|
|
|
1.5
|
|
|
6
|
%
|
|
Other operating
expense (income), net
|
1.0
|
|
|
(1.2)
|
|
|
2.2
|
|
|
NM
|
|
|
INCOME FROM
OPERATIONS
|
245.9
|
|
|
233.6
|
|
|
12.3
|
|
|
5
|
%
|
|
OTHER EXPENSES
(INCOME):
|
|
|
|
|
|
|
|
|
Floor plan interest
expense
|
29.7
|
|
|
23.0
|
|
|
6.7
|
|
|
29
|
%
|
|
Other interest
expense, net
|
41.2
|
|
|
39.4
|
|
|
1.8
|
|
|
5
|
%
|
|
Swap interest
expense
|
—
|
|
|
0.5
|
|
|
(0.5)
|
|
|
(100)
|
%
|
|
Gain on
divestiture
|
(11.7)
|
|
|
—
|
|
|
(11.7)
|
|
|
—
|
%
|
|
Total other expenses,
net
|
59.2
|
|
|
62.9
|
|
|
(3.7)
|
|
|
(6)
|
%
|
|
INCOME BEFORE INCOME
TAXES
|
186.7
|
|
|
170.7
|
|
|
16.0
|
|
|
9
|
%
|
|
Income tax
expense
|
45.9
|
|
|
43.1
|
|
|
2.8
|
|
|
6
|
%
|
|
NET INCOME
|
$
|
140.8
|
|
|
$
|
127.6
|
|
|
$
|
13.2
|
|
|
10
|
%
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
Basic—
|
|
|
|
|
|
|
|
|
Net income
|
$
|
7.37
|
|
|
$
|
6.29
|
|
|
$
|
1.08
|
|
|
17
|
%
|
|
Diluted—
|
|
|
|
|
|
|
|
|
Net income
|
$
|
7.30
|
|
|
$
|
6.22
|
|
|
$
|
1.08
|
|
|
17
|
%
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
19.1
|
|
|
20.3
|
|
|
(1.2)
|
|
|
(6)
|
%
|
|
Restricted
stock
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
%
|
|
Performance share
units
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
%
|
|
Diluted
|
19.3
|
|
|
20.5
|
|
|
(1.2)
|
|
|
(6)
|
%
|
|
______________________________
|
|
NM—Not
Meaningful
|
|
ASBURY AUTOMOTIVE
GROUP, INC.
KEY OPERATING
HIGHLIGHTS (In millions, except per unit data)
(Unaudited)
|
|
|
For the Nine
Months
Ended September 30,
|
|
Increase
(Decrease)
|
|
%
Change
|
|
2019
|
|
2018
|
|
|
|
Unit
sales
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
16,933
|
|
|
16,527
|
|
|
406
|
|
|
2
|
%
|
|
Import
|
45,697
|
|
|
46,545
|
|
|
(848)
|
|
|
(2)
|
%
|
|
Domestic
|
15,006
|
|
|
14,406
|
|
|
600
|
|
|
4
|
%
|
|
Total new vehicle
|
77,636
|
|
|
77,478
|
|
|
158
|
|
|
—
|
%
|
|
Used vehicle
retail
|
66,330
|
|
|
63,079
|
|
|
3,251
|
|
|
5
|
%
|
|
Used to new
ratio
|
85.4
|
%
|
|
81.4
|
%
|
|
400 bps
|
|
|
|
|
Average selling
price
|
|
|
|
|
|
|
|
|
New
vehicle
|
$
|
36,374
|
|
|
$
|
35,704
|
|
|
$
|
670
|
|
|
2
|
%
|
|
Used vehicle
retail
|
21,857
|
|
|
21,487
|
|
|
370
|
|
|
2
|
%
|
|
Average gross
profit per unit
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
$
|
3,425
|
|
|
$
|
3,479
|
|
|
$
|
(54)
|
|
|
(2)
|
%
|
|
Import
|
689
|
|
|
840
|
|
|
(151)
|
|
|
(18)
|
%
|
|
Domestic
|
1,686
|
|
|
1,715
|
|
|
(29)
|
|
|
(2)
|
%
|
|
Total new
vehicle
|
1,479
|
|
|
1,566
|
|
|
(87)
|
|
|
(6)
|
%
|
|
Used vehicle
retail
|
1,541
|
|
|
1,562
|
|
|
(21)
|
|
|
(1)
|
%
|
|
Finance and
insurance, net
|
1,614
|
|
|
1,530
|
|
|
84
|
|
|
5
|
%
|
|
Front end yield
(1)
|
3,121
|
|
|
3,093
|
|
|
28
|
|
|
1
|
%
|
|
Gross
margin
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
6.2
|
%
|
|
6.5
|
%
|
|
(30) bps
|
|
|
|
|
Import
|
2.4
|
%
|
|
3.0
|
%
|
|
(60) bps
|
|
|
|
|
Domestic
|
4.2
|
%
|
|
4.4
|
%
|
|
(20) bps
|
|
|
|
|
Total new
vehicle
|
4.1
|
%
|
|
4.4
|
%
|
|
(30) bps
|
|
|
|
|
Used vehicle
retail
|
7.0
|
%
|
|
7.3
|
%
|
|
(30) bps
|
|
|
|
|
Parts and
service
|
62.3
|
%
|
|
63.0
|
%
|
|
(70) bps
|
|
|
|
|
Total gross profit
margin
|
16.3
|
%
|
|
16.1
|
%
|
|
20 bps
|
|
|
|
|
SG&A
metrics
|
|
|
|
|
|
|
|
|
Rent
expense
|
$
|
20.3
|
|
|
$
|
19.0
|
|
|
$
|
1.3
|
|
|
7
|
%
|
|
Total SG&A as a
percentage of gross profit
|
68.5
|
%
|
|
68.6
|
%
|
|
(10) bps
|
|
|
|
|
SG&A, excluding
rent expense as a percentage of gross profit
|
66.1
|
%
|
|
66.3
|
%
|
|
(20) bps
|
|
|
|
|
Operating
metrics
|
|
|
|
|
|
|
|
|
Income from
operations as a percentage of revenue
|
4.6
|
%
|
|
4.6
|
%
|
|
—bps
|
|
|
|
|
Income from
operations as a percentage of gross profit
|
28.4
|
%
|
|
28.4
|
%
|
|
—bps
|
|
|
|
|
Adjusted income from
operations as a percentage of revenue
|
4.7
|
%
|
|
4.6
|
%
|
|
10bps
|
|
|
|
|
Adjusted income from
operations as a percentage of gross profit
|
28.6
|
%
|
|
28.4
|
%
|
|
20 bps
|
|
|
|
|
Revenue
mix
|
|
|
|
|
|
|
|
|
New
vehicle
|
53.1
|
%
|
|
54.3
|
%
|
|
|
|
|
|
Used vehicle
retail
|
27.3
|
%
|
|
26.7
|
%
|
|
|
|
|
|
Used vehicle
wholesale
|
2.6
|
%
|
|
2.8
|
%
|
|
|
|
|
|
Parts and
service
|
12.6
|
%
|
|
12.0
|
%
|
|
|
|
|
|
Finance and
insurance
|
4.4
|
%
|
|
4.2
|
%
|
|
|
|
|
|
Total revenue
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
Gross profit
mix
|
|
|
|
|
|
|
|
|
New
vehicle
|
13.2
|
%
|
|
14.8
|
%
|
|
|
|
|
|
Used vehicle
retail
|
11.8
|
%
|
|
12.0
|
%
|
|
|
|
|
|
Used vehicle
wholesale
|
0.1
|
%
|
|
0.2
|
%
|
|
|
|
|
|
Parts and
service
|
48.1
|
%
|
|
46.8
|
%
|
|
|
|
|
|
Finance and
insurance
|
26.8
|
%
|
|
26.2
|
%
|
|
|
|
|
|
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 Nine
Months
Ended September 30,
|
|
Increase
(Decrease)
|
|
%
Change
|
|
2019
|
|
2018
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
$
|
926.7
|
|
|
$
|
883.8
|
|
|
$
|
42.9
|
|
|
5
|
%
|
|
Import
|
1,260.1
|
|
|
1,284.0
|
|
|
(23.9)
|
|
|
(2)
|
%
|
|
Domestic
|
512.1
|
|
|
563.2
|
|
|
(51.1)
|
|
|
(9)
|
%
|
|
Total new vehicle
|
2,698.9
|
|
|
2,731.0
|
|
|
(32.1)
|
|
|
(1)
|
%
|
|
Used
Vehicle:
|
|
|
|
|
|
|
|
|
Retail
|
1,383.4
|
|
|
1,333.1
|
|
|
50.3
|
|
|
4
|
%
|
|
Wholesale
|
135.9
|
|
|
140.7
|
|
|
(4.8)
|
|
|
(3)
|
%
|
|
Total used
vehicle
|
1,519.3
|
|
|
1,473.8
|
|
|
45.5
|
|
|
3
|
%
|
|
Parts and
service
|
648.6
|
|
|
602.1
|
|
|
46.5
|
|
|
8
|
%
|
|
Finance and
insurance, net
|
222.8
|
|
|
210.7
|
|
|
12.1
|
|
|
6
|
%
|
|
Total
revenue
|
$
|
5,089.6
|
|
|
$
|
5,017.6
|
|
|
$
|
72.0
|
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
$
|
58.1
|
|
|
$
|
57.5
|
|
|
$
|
0.6
|
|
|
1
|
%
|
|
Import
|
30.6
|
|
|
37.8
|
|
|
(7.2)
|
|
|
(19)
|
%
|
|
Domestic
|
20.6
|
|
|
24.7
|
|
|
(4.1)
|
|
|
(17)
|
%
|
|
Total new vehicle
|
109.3
|
|
|
120.0
|
|
|
(10.7)
|
|
|
(9)
|
%
|
|
Used
Vehicle:
|
|
|
|
|
|
|
|
|
Retail
|
96.6
|
|
|
97.2
|
|
|
(0.6)
|
|
|
(1)
|
%
|
|
Wholesale
|
0.6
|
|
|
2.0
|
|
|
(1.4)
|
|
|
(70)
|
%
|
|
Total used
vehicle
|
97.2
|
|
|
99.2
|
|
|
(2.0)
|
|
|
(2)
|
%
|
|
Parts and
service:
|
|
|
|
|
|
|
|
|
Customer
pay
|
229.0
|
|
|
215.2
|
|
|
13.8
|
|
|
6
|
%
|
|
Warranty
|
64.2
|
|
|
56.0
|
|
|
8.2
|
|
|
15
|
%
|
|
Wholesale
parts
|
17.3
|
|
|
16.6
|
|
|
0.7
|
|
|
4
|
%
|
|
Parts and service, excluding
reconditioning and preparation
|
310.5
|
|
|
287.8
|
|
|
22.7
|
|
|
8
|
%
|
|
Reconditioning and
preparation
|
93.1
|
|
|
91.6
|
|
|
1.5
|
|
|
2
|
%
|
|
Total parts and
service
|
403.6
|
|
|
379.4
|
|
|
24.2
|
|
|
6
|
%
|
|
Finance and
insurance
|
222.8
|
|
|
210.7
|
|
|
12.1
|
|
|
6
|
%
|
|
Total gross
profit
|
$
|
832.9
|
|
|
$
|
809.3
|
|
|
$
|
23.6
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
SG&A
expense
|
$
|
569.4
|
|
|
$
|
554.4
|
|
|
$
|
15.0
|
|
|
3
|
%
|
|
SG&A expense as a
percentage of gross profit
|
68.4
|
%
|
|
68.5
|
%
|
|
(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.
|
|
ASBURY AUTOMOTIVE
GROUP, INC.
SAME STORE OPERATING
HIGHLIGHTS (Continued)
(Unaudited)
|
|
|
For the Nine
Months
Ended September 30,
|
|
Increase
(Decrease)
|
|
%
Change
|
|
2019
|
|
2018
|
|
|
|
Unit
sales
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
16,862
|
|
|
16,527
|
|
|
335
|
|
|
2
|
%
|
|
Import
|
44,617
|
|
|
45,258
|
|
|
(641)
|
|
|
(1)
|
%
|
|
Domestic
|
12,708
|
|
|
14,406
|
|
|
(1,698)
|
|
|
(12)
|
%
|
|
Total new vehicle
|
74,187
|
|
|
76,191
|
|
|
(2,004)
|
|
|
(3)
|
%
|
|
Used vehicle
retail
|
62,917
|
|
|
61,913
|
|
|
1,004
|
|
|
2
|
%
|
|
Used to new
ratio
|
84.8
|
%
|
|
81.3
|
%
|
|
350 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling
price
|
|
|
|
|
|
|
|
|
New
vehicle
|
$
|
36,380
|
|
|
$
|
35,844
|
|
|
$
|
536
|
|
|
1
|
%
|
|
Used vehicle
retail
|
21,988
|
|
|
21,532
|
|
|
456
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
Average gross
profit per unit
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
$
|
3,446
|
|
|
$
|
3,479
|
|
|
$
|
(33)
|
|
|
(1)
|
%
|
|
Import
|
686
|
|
|
835
|
|
|
(149)
|
|
|
(18)
|
%
|
|
Domestic
|
1,621
|
|
|
1,715
|
|
|
(94)
|
|
|
(5)
|
%
|
|
Total new
vehicle
|
1,473
|
|
|
1,575
|
|
|
(102)
|
|
|
(6)
|
%
|
|
Used vehicle
retail
|
1,535
|
|
|
1,570
|
|
|
(35)
|
|
|
(2)
|
%
|
|
Finance and
insurance, net
|
1,625
|
|
|
1,526
|
|
|
99
|
|
|
6
|
%
|
|
Front end yield
(1)
|
3,127
|
|
|
3,098
|
|
|
29
|
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
|
|
|
|
|
|
|
New
vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
6.3
|
%
|
|
6.5
|
%
|
|
(20) bps
|
|
|
|
|
Import
|
2.4
|
%
|
|
2.9
|
%
|
|
(50) bps
|
|
|
|
|
Domestic
|
4.0
|
%
|
|
4.4
|
%
|
|
(40) bps
|
|
|
|
|
Total new
vehicle
|
4.0
|
%
|
|
4.4
|
%
|
|
(40) bps
|
|
|
|
|
Used vehicle
retail
|
7.0
|
%
|
|
7.3
|
%
|
|
(30) bps
|
|
|
|
|
Parts and
service:
|
|
|
|
|
|
|
|
|
Parts and service,
excluding reconditioning and preparation
|
47.9
|
%
|
|
47.8
|
%
|
|
10 bps
|
|
|
|
|
Parts and service,
including reconditioning and preparation
|
62.2
|
%
|
|
63.0
|
%
|
|
(80) bps
|
|
|
|
|
Total gross profit
margin
|
16.4
|
%
|
|
16.1
|
%
|
|
30 bps
|
|
|
|
|
_____________________________
|
|
Same store amounts
consist of information from dealerships for identical months in
each comparative period, commencing with the first month we owned
the dealership. Additionally, amounts related to divested
dealerships are excluded from each comparative period.
|
|
|
(1) Front end
yield is calculated as gross profit from new vehicles, used retail
vehicles and finance and insurance (net),
|
|
divided by combined
new and used retail unit sales.
|
|
ASBURY AUTOMOTIVE
GROUP, INC.
Additional
Disclosures (In millions)
(Unaudited)
|
|
|
September 30,
2019
|
|
December 31,
2018
|
|
Increase
(Decrease)
|
|
% Change
|
|
SELECTED BALANCE
SHEET DATA
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
1.8
|
|
|
$
|
8.3
|
|
|
$
|
(6.5)
|
|
|
(78)
|
%
|
|
New vehicle
inventory
|
810.3
|
|
|
867.2
|
|
|
(56.9)
|
|
|
(7)
|
%
|
|
Used vehicle
inventory
|
176.3
|
|
|
158.9
|
|
|
17.4
|
|
|
11
|
%
|
|
Parts
inventory
|
43.5
|
|
|
41.5
|
|
|
2.0
|
|
|
5
|
%
|
|
Total current
assets
|
1,448.0
|
|
|
1,553.0
|
|
|
(105.0)
|
|
|
(7)
|
%
|
|
Floor plan notes
payable
|
861.0
|
|
|
966.1
|
|
|
(105.1)
|
|
|
(11)
|
%
|
|
Total current
liabilities
|
1,235.1
|
|
|
1,303.3
|
|
|
(68.2)
|
|
|
(5)
|
%
|
|
|
|
|
|
|
|
|
|
CAPITALIZATION:
|
|
|
|
|
|
|
|
|
Long-term debt
(including current portion)
|
$
|
905.9
|
|
|
$
|
905.3
|
|
|
$
|
0.6
|
|
|
—
|
%
|
|
Shareholders'
equity
|
600.0
|
|
|
473.2
|
|
|
126.8
|
|
|
27
|
%
|
|
Total
|
$
|
1,505.9
|
|
|
$
|
1,378.5
|
|
|
$
|
127.4
|
|
|
9
|
%
|
|
|
|
|
|
September 30,
2019
|
|
December 31,
2018
|
|
DAYS
SUPPLY
|
|
|
|
|
New vehicle
inventory
|
76
|
|
67
|
|
Used vehicle
inventory
|
36
|
|
34
|
|
_____________________________
|
|
Days supply of
inventory is calculated based on new and used inventory levels at
the end of each reporting period and a 30-day historical cost of
sales.
|
|
Brand Mix - New
Vehicle Revenue by Brand-
|
|
|
For the Nine
Months
Ended September 30,
|
|
2019
|
|
2018
|
|
Luxury:
|
|
|
|
|
Mercedes-Benz
|
7
|
%
|
|
6
|
%
|
|
Lexus
|
6
|
%
|
|
6
|
%
|
|
BMW
|
6
|
%
|
|
5
|
%
|
|
Acura
|
4
|
%
|
|
4
|
%
|
|
Infiniti
|
3
|
%
|
|
3
|
%
|
|
Other
luxury
|
7
|
%
|
|
8
|
%
|
|
Total
luxury
|
33
|
%
|
|
32
|
%
|
|
Imports:
|
|
|
|
|
Honda
|
19
|
%
|
|
20
|
%
|
|
Nissan
|
9
|
%
|
|
11
|
%
|
|
Toyota
|
13
|
%
|
|
12
|
%
|
|
Other
imports
|
5
|
%
|
|
5
|
%
|
|
Total
imports
|
46
|
%
|
|
48
|
%
|
|
Domestic:
|
|
|
|
|
Ford
|
9
|
%
|
|
10
|
%
|
|
Chevrolet
|
6
|
%
|
|
5
|
%
|
|
Dodge
|
3
|
%
|
|
3
|
%
|
|
Other
domestics
|
3
|
%
|
|
2
|
%
|
|
Total
domestic
|
21
|
%
|
|
20
|
%
|
|
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 net income," " Adjusted operating margins,"
and "Adjusted diluted earnings per share ("EPS")." 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
|
|
September 30,
2019
|
|
June 30,
2019
|
|
(Dollars in
millions)
|
|
Adjusted leverage
ratio:
|
|
|
|
|
Long-term debt
(including current portion)
|
$
|
905.9
|
|
|
$
|
909.6
|
|
|
|
|
|
|
Calculation of
earnings before interest, taxes, depreciation and amortization
("EBITDA"):
|
|
|
|
|
Net Income
|
$
|
181.2
|
|
|
$
|
180.5
|
|
|
|
|
|
|
Add:
|
|
|
|
|
Depreciation and
amortization
|
35.2
|
|
|
34.7
|
|
|
Income tax
expense
|
59.8
|
|
|
59.8
|
|
|
Swap and other
interest expense
|
54.8
|
|
|
54.4
|
|
|
Earnings before
interest, taxes, depreciation and amortization
("EBITDA")
|
$
|
331.0
|
|
|
$
|
329.4
|
|
|
|
|
|
|
Non-core items -
expense (income):
|
|
|
|
|
Gain on
divestiture
|
$
|
(11.7)
|
|
|
$
|
(11.7)
|
|
|
Gain on sale of real
estate
|
(0.3)
|
|
|
$
|
(0.3)
|
|
|
Franchise rights
impairment
|
3.7
|
|
|
3.7
|
|
|
Fixed assets
write-off
|
2.4
|
|
|
2.4
|
|
|
Total non-core
items
|
(5.9)
|
|
|
(5.9)
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
325.1
|
|
|
$
|
323.5
|
|
|
|
|
|
|
Adjusted leverage
ratio
|
2.8
|
|
|
2.8
|
|
|
For the Three
Months
Ended September 30,
|
|
2019
|
|
2018
|
|
(In millions,
except per
share data)
|
|
Adjusted net
income:
|
|
|
|
|
Net income
|
$
|
45.0
|
|
|
$
|
44.3
|
|
|
|
|
|
|
Non-core items -
(income) expense:
|
|
|
|
|
2017 Tax Act
Adjustment
|
—
|
|
|
0.6
|
|
|
Total non-core
items
|
—
|
|
|
0.6
|
|
|
Adjusted net
income
|
$
|
45.0
|
|
|
$
|
44.9
|
|
|
|
|
|
|
Adjusted diluted
earnings per share (EPS):
|
|
|
|
|
Diluted
EPS
|
$
|
2.33
|
|
|
$
|
2.18
|
|
|
|
|
|
|
Total non-core
items
|
—
|
|
|
0.03
|
|
|
Adjusted diluted
EPS
|
$
|
2.33
|
|
|
$
|
2.21
|
|
|
|
|
|
|
Weighted average
common shares outstanding - diluted
|
19.3
|
|
|
20.3
|
|
|
For the Nine
Months
Ended September 30,
|
|
2019
|
|
2018
|
|
(In millions,
except per
share data)
|
|
Adjusted income from
operations:
|
|
|
|
|
Income from
operations
|
$
|
245.9
|
|
|
$
|
233.6
|
|
|
Gain on sale of real
estate
|
(0.3)
|
|
|
—
|
|
|
Fixed assets
write-off
|
2.4
|
|
|
—
|
|
|
Legal
settlements
|
—
|
|
|
(0.7)
|
|
|
Adjusted income from
operations
|
$
|
248.0
|
|
|
$
|
232.9
|
|
|
|
|
|
|
Adjusted net
income:
|
|
|
|
|
Net income
|
$
|
140.8
|
|
|
$
|
127.6
|
|
|
|
|
|
|
Non-core items -
(income) expense:
|
|
|
|
|
Gain on
divestiture
|
(11.7)
|
|
|
—
|
|
|
Gain on sale of real
estate
|
(0.3)
|
|
|
—
|
|
|
Fixed assets
write-off
|
2.4
|
|
|
—
|
|
|
2017 Tax Act
Adjustment
|
—
|
|
|
0.6
|
|
|
Legal
settlements
|
—
|
|
|
(0.7)
|
|
|
Income tax on
non-core items above
|
2.4
|
|
|
0.2
|
|
|
Total non-core
items
|
(7.2)
|
|
|
0.1
|
|
|
Adjusted net
income
|
$
|
133.6
|
|
|
$
|
127.7
|
|
|
|
|
|
|
Adjusted diluted
earnings per share (EPS):
|
|
|
|
|
Diluted
EPS
|
$
|
7.30
|
|
|
$
|
6.22
|
|
|
|
|
|
|
Total non-core
items
|
(0.38)
|
|
|
0.01
|
|
|
Adjusted diluted
EPS
|
$
|
6.92
|
|
|
$
|
6.23
|
|
|
|
|
|
|
Weighted average
common shares outstanding - diluted
|
19.3
|
|
|
20.5
|
|
View original
content:http://www.prnewswire.com/news-releases/asbury-automotive-group-announces-2019-third-quarter-financial-results-300942511.html
SOURCE Asbury Automotive Group, Inc.