DULUTH, Ga., April 27, 2017 /PRNewswire/ -- Asbury Automotive
Group, Inc. (NYSE: ABG), one of the largest automotive retail and service companies in the U.S., today reported net income for
the first quarter 2017 of $34.0 million, or $1.61 per diluted share,
compared to $31.0 million, or $1.27 per diluted share in the prior
year quarter. It also reported adjusted income from continuing operations (a non-GAAP measure) for the first quarter 2017 of
$33.4 million, or $1.58 per diluted share, compared to $33.2 million, or $1.36 per diluted share, in the prior year quarter, a 16%
increase in adjusted earnings per share.
Income from continuing operations for the first quarter 2017 was adjusted for $0.9 million of
pre-tax legal settlement benefits, or $0.03 per diluted share. Income from continuing
operations for the first quarter 2016 was adjusted for $3.4 million of pre-tax real estate related
charges, or $0.09 per diluted share. See attached reconciliation for reported adjustments related
to both of these periods.
Total revenue for the first quarter remained flat at $1.6 billion compared to the prior year
period; total revenue on a same-store basis (a non-GAAP measure) was up 3% from the prior year period.
First Quarter 2017 Operational Summary
Same store:
- Total revenues increased 3%; gross profit increased 3%
- New vehicle revenue increased 1%; gross profit decreased 9%
- Used vehicle retail revenue increased 4%; gross profit decreased 2%
- Finance and insurance gross profit increased 9%
- Parts and service revenue increased 5%; gross profit increased 5%
All store:
- SG&A as a percentage of gross profit increased 10 basis points to 69.6%
- Total company adjusted income from operations (a non-GAAP measure) as a percentage of revenue was 4.6% down 10 basis points
from the prior year
- Adjusted EPS from continuing operations increased 16%
First Quarter Strategic Highlights:
- Acquired a Chevrolet franchise and an Isuzu truck franchise in Indianapolis, Indiana
- Opened a Nissan add point in Cumming, Georgia
- Repurchased $15 million of common stock
"Despite flat new vehicle industry sales and continued margin pressure, we are pleased to announce our 31st
consecutive quarter of adjusted EPS growth," said Craig Monaghan, Asbury's President and Chief
Executive Officer.
"Our ability to drive incremental used sales, enhance F&I PVR, and grow parts and service enabled us to deliver same-store
gross profit growth of 3% and industry leading operating margins of 4.6%," said Asbury's Executive Vice President and Chief
Operating Officer, David Hult.
The conference call will be simulcast live on the Internet and can be accessed by logging onto www.asburyauto.com or www.ccbn.com. A replay will be available at these sites for 30 days.
In addition, a live audio of the call will be accessible to the public by calling (877) 852-6579 (domestic), or (719) 325-4929
(international); passcode - 1223221. Callers should dial in approximately 5 to 10 minutes before the call begins.
A conference call replay will be available two hours following the call for seven days, and can be accessed by calling (888)
203-1112 (domestic), or (719) 457-0820 (international); passcode - 1223221.
About Asbury Automotive Group, Inc.
Asbury Automotive Group, Inc. ("Asbury"), a Fortune 500 company headquartered in Duluth, GA,
is one of the largest automotive retailers in the U.S. Asbury currently operates 80 dealerships, consisting of 96
franchises, representing 29 domestic and foreign brands of vehicles. Asbury also operates 24 collision repair centers and 2
stand-alone used vehicle stores. Asbury offers customers an extensive range of automotive products and services, including
new and used vehicle sales and related financing and insurance, vehicle maintenance and repair services, replacement parts and
service contracts.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are statements other than historical fact, and may include statements relating to goals,
plans, market conditions and projections regarding Asbury's financial position, liquidity, results of operations, market position
and dealership portfolio, and other initiatives and future business strategy. These statements are based on management's
current expectations and beliefs and involve significant risks and uncertainties that may cause results to differ materially from
those set forth in the statements. These risks and uncertainties include, among other things, market factors, Asbury's
relationships with, and the financial and operational stability of, vehicle manufacturers and other suppliers, acts of God or
other incidents which may adversely impact supply from vehicle manufacturers and/or present retail sales challenges, risks
associated with Asbury's indebtedness (including available borrowing capacity, compliance with its financial covenants and
ability to refinance or repay such indebtedness, on favorable terms), Asbury's relationships with, and the financial stability
of, its lenders and lessors, risks related to competition in the automotive retail and service industries, general economic
conditions both nationally and locally, governmental regulations, legislation, adverse results in litigation and other
proceedings, and Asbury's ability to execute its IT initiatives and other operational strategies, Asbury's ability to leverage
gains from its dealership portfolio, Asbury's ability to capitalize on opportunities to repurchase its debt and equity securities
or purchase properties that it currently leases, and Asbury's ability to stay within its targeted range for capital
expenditures. There can be no guarantees that Asbury's plans for future operations will be successfully implemented or that
they will prove to be commercially successful.
These and other risk factors that could cause actual results to differ materially from those expressed or implied in our
forward-looking statements are and will be discussed in Asbury's filings with the U.S. Securities and Exchange Commission from
time to time, including its most recent annual report on Form 10-K and any subsequently filed quarterly reports on Form
10-Q. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information,
future events or otherwise.
|
ASBURY AUTOMOTIVE GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share
data)
(Unaudited)
|
|
|
|
|
For the Three Months Ended
March 31,
|
|
|
2017
|
|
2016
|
|
Increase
(Decrease)
|
|
%
Change
|
|
REVENUE:
|
|
|
|
|
|
|
|
|
New vehicle
|
$
|
832.5
|
|
$
|
838.4
|
|
$
|
(5.9)
|
|
(1)
|
%
|
|
Used vehicle:
|
|
|
|
|
|
|
|
|
Retail
|
415.4
|
|
413.1
|
|
2.3
|
|
1
|
%
|
|
Wholesale
|
46.4
|
|
47.8
|
|
(1.4)
|
|
(3)
|
%
|
|
Total used vehicle
|
461.8
|
|
460.9
|
|
0.9
|
|
—
|
%
|
|
Parts and service
|
191.5
|
|
189.2
|
|
2.3
|
|
1
|
%
|
|
Finance and insurance, net
|
65.9
|
|
62.3
|
|
3.6
|
|
6
|
%
|
|
TOTAL REVENUE
|
1,551.7
|
|
1,550.8
|
|
0.9
|
|
—
|
%
|
|
GROSS PROFIT:
|
|
|
|
|
|
|
|
|
New vehicle
|
40.4
|
|
44.7
|
|
(4.3)
|
|
(10)
|
%
|
|
Used vehicle:
|
|
|
|
|
|
|
|
|
Retail
|
33.0
|
|
34.7
|
|
(1.7)
|
|
(5)
|
%
|
|
Wholesale
|
0.9
|
|
1.1
|
|
(0.2)
|
|
18
|
%
|
|
Total used vehicle
|
33.9
|
|
35.8
|
|
(1.9)
|
|
(5)
|
%
|
|
Parts and service
|
119.9
|
|
118.0
|
|
1.9
|
|
2
|
%
|
|
Finance and insurance, net
|
65.9
|
|
62.3
|
|
3.6
|
|
6
|
%
|
|
TOTAL GROSS PROFIT
|
260.1
|
|
260.8
|
|
(0.7)
|
|
—
|
%
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
181.1
|
|
181.2
|
|
(0.1)
|
|
—
|
%
|
|
Depreciation and amortization
|
7.9
|
|
7.5
|
|
0.4
|
|
5
|
%
|
|
Other operating (income) expense, net
|
(1.2)
|
|
3.2
|
|
(4.4)
|
|
(138)
|
%
|
|
INCOME FROM OPERATIONS
|
72.3
|
|
68.9
|
|
3.4
|
|
5
|
%
|
|
OTHER EXPENSES:
|
|
|
|
|
|
|
|
|
Floor plan interest expense
|
5.3
|
|
4.4
|
|
0.9
|
|
20
|
%
|
|
Other interest expense, net
|
13.3
|
|
13.4
|
|
(0.1)
|
|
(1)
|
%
|
|
Swap interest expense
|
0.6
|
|
0.8
|
|
(0.2)
|
|
(25)
|
%
|
|
Total other expenses, net
|
19.2
|
|
18.6
|
|
0.6
|
|
3
|
%
|
|
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES
|
53.1
|
|
50.3
|
|
2.8
|
|
6
|
%
|
|
Income tax expense
|
19.1
|
|
19.2
|
|
(0.1)
|
|
(1)
|
%
|
|
INCOME FROM CONTINUING OPERATIONS
|
34.0
|
|
31.1
|
|
2.9
|
|
9
|
%
|
|
Discontinued operations, net of tax
|
—
|
|
(0.1)
|
|
0.1
|
|
100
|
%
|
|
NET INCOME
|
$
|
34.0
|
|
$
|
31.0
|
|
$
|
3.0
|
|
10
|
%
|
|
EARNINGS PER COMMON SHARE:
|
|
|
|
|
|
|
|
Basic—
|
|
|
|
|
|
|
|
Continuing operations
|
$
|
1.62
|
|
$
|
1.28
|
|
$
|
0.34
|
|
27
|
%
|
|
Discontinued operations
|
—
|
|
—
|
|
—
|
|
—
|
%
|
|
Net income
|
$
|
1.62
|
|
$
|
1.28
|
|
$
|
0.34
|
|
27
|
%
|
|
Diluted—
|
|
|
|
|
|
|
|
|
Continuing operations
|
$
|
1.61
|
|
$
|
1.27
|
|
$
|
0.34
|
|
27
|
%
|
|
Discontinued operations
|
—
|
|
—
|
|
—
|
|
—
|
%
|
|
Net income
|
$
|
1.61
|
|
$
|
1.27
|
|
$
|
0.34
|
|
27
|
%
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
Basic
|
21.0
|
|
24.3
|
|
(3.3)
|
|
(14)
|
%
|
|
Restricted stock
|
—
|
|
—
|
|
—
|
|
—
|
%
|
|
Performance share units
|
0.1
|
|
0.1
|
|
—
|
|
—
|
%
|
|
Diluted
|
21.1
|
|
24.4
|
|
(3.3)
|
|
(14)
|
%
|
|
ASBURY AUTOMOTIVE GROUP, INC.
KEY OPERATING HIGHLIGHTS (In millions, except per unit data)
(Unaudited)
|
|
|
|
|
|
|
|
For the Three Months Ended
March 31,
|
|
Increase
(Decrease)
|
|
%
Change
|
|
2017
|
|
2016
|
|
|
|
Unit sales
|
|
|
|
|
|
|
|
|
New vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
5,114
|
|
|
5,626
|
|
|
(512)
|
|
|
(9)
|
%
|
|
Import
|
13,674
|
|
|
13,484
|
|
|
190
|
|
|
1
|
%
|
|
Domestic
|
4,678
|
|
|
4,919
|
|
|
(241)
|
|
|
(5)
|
%
|
|
Total new vehicle
|
23,466
|
|
|
24,029
|
|
|
(563)
|
|
|
(2)
|
%
|
|
Used vehicle retail
|
20,067
|
|
|
19,736
|
|
|
331
|
|
|
2
|
%
|
|
Used to new ratio
|
85.5
|
%
|
|
82.1
|
%
|
|
340
|
bps
|
|
|
|
Average selling price
|
|
|
|
|
|
|
|
|
New vehicle
|
$
|
35,477
|
|
|
$
|
34,891
|
|
|
$
|
586
|
|
|
2
|
%
|
|
Used vehicle retail
|
20,701
|
|
|
20,931
|
|
|
(230)
|
|
|
(1)
|
%
|
|
Average gross profit per unit
|
|
|
|
|
|
|
|
|
New vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
$
|
3,539
|
|
|
$
|
3,519
|
|
|
$
|
20
|
|
|
1
|
%
|
|
Import
|
1,046
|
|
|
1,253
|
|
|
(207)
|
|
|
(17)
|
%
|
|
Domestic
|
1,710
|
|
|
1,626
|
|
|
84
|
|
|
5
|
%
|
|
Total new vehicle
|
1,722
|
|
|
1,860
|
|
|
(138)
|
|
|
(7)
|
%
|
|
Used vehicle
|
1,644
|
|
|
1,758
|
|
|
(114)
|
|
|
(6)
|
%
|
|
Finance and insurance, net
|
1,514
|
|
|
1,424
|
|
|
90
|
|
|
6
|
%
|
|
Front end yield (1)
|
3,200
|
|
|
3,238
|
|
|
(38)
|
|
|
(1)
|
%
|
|
Gross margin
|
|
|
|
|
|
|
|
|
New vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
6.6
|
%
|
|
6.8
|
%
|
|
(20)
|
bps
|
|
|
|
Import
|
3.8
|
%
|
|
4.5
|
%
|
|
(70)
|
bps
|
|
|
|
Domestic
|
4.5
|
%
|
|
4.6
|
%
|
|
(10)
|
bps
|
|
|
|
Total new vehicle
|
4.9
|
%
|
|
5.3
|
%
|
|
(40)
|
bps
|
|
|
|
Used vehicle retail
|
7.9
|
%
|
|
8.4
|
%
|
|
(50)
|
bps
|
|
|
|
Parts and service
|
62.6
|
%
|
|
62.4
|
%
|
|
20
|
bps
|
|
|
|
Total gross profit margin
|
16.8
|
%
|
|
16.8
|
%
|
|
—
|
bps
|
|
|
|
SG&A metrics
|
|
|
|
|
|
|
|
|
Rent expense
|
$
|
6.9
|
|
|
$
|
7.8
|
|
|
$
|
(0.9)
|
|
|
(12)
|
%
|
|
Total SG&A as a percentage of gross profit
|
69.6
|
%
|
|
69.5
|
%
|
|
10
|
bps
|
|
|
|
SG&A, excluding rent expense as a percentage of gross profit
|
67.0
|
%
|
|
66.5
|
%
|
|
50
|
bps
|
|
|
|
Operating metrics
|
|
|
|
|
|
|
|
|
Income from operations as a percentage of revenue
|
4.7
|
%
|
|
4.4
|
%
|
|
30
|
bps
|
|
|
|
Income from operations as a percentage of gross profit
|
27.8
|
%
|
|
26.4
|
%
|
|
140
|
bps
|
|
|
|
Adjusted income from operations as a percentage of revenue
|
4.6
|
%
|
|
4.7
|
%
|
|
(10)
|
bps
|
|
|
|
Adjusted income from operations as a percentage of gross profit
|
27.5
|
%
|
|
27.7
|
%
|
|
(20)
|
bps
|
|
|
|
Revenue mix
|
|
|
|
|
|
|
|
|
New vehicle
|
53.7
|
%
|
|
54.1
|
%
|
|
|
|
|
|
Used vehicle retail
|
26.8
|
%
|
|
26.6
|
%
|
|
|
|
|
|
Used vehicle wholesale
|
3.0
|
%
|
|
3.1
|
%
|
|
|
|
|
|
Parts and service
|
12.3
|
%
|
|
12.2
|
%
|
|
|
|
|
|
Finance and insurance
|
4.2
|
%
|
|
4.0
|
%
|
|
|
|
|
|
Total revenue
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
Gross profit mix
|
|
|
|
|
|
|
|
|
New vehicle
|
15.5
|
%
|
|
17.1
|
%
|
|
|
|
|
|
Used vehicle retail
|
12.8
|
%
|
|
13.4
|
%
|
|
|
|
|
|
Used vehicle wholesale
|
0.3
|
%
|
|
0.4
|
%
|
|
|
|
|
|
Parts and service
|
46.1
|
%
|
|
45.2
|
%
|
|
|
|
|
|
Finance and insurance
|
25.3
|
%
|
|
23.9
|
%
|
|
|
|
|
|
Total gross profit
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Front end yield is calculated as gross profit from new vehicles,
used retail vehicles and finance and insurance (net),
divided by combined new and used retail unit sales.
|
|
ASBURY AUTOMOTIVE GROUP, INC.
SAME STORE OPERATING HIGHLIGHTS (In millions)
(Unaudited)
|
|
|
|
|
|
|
|
For the Three Months Ended
March 31,
|
|
Increase
(Decrease)
|
|
%
Change
|
|
2017
|
|
2016
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
New vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
$
|
272.8
|
|
|
$
|
284.7
|
|
|
$
|
(11.9)
|
|
|
(4)
|
%
|
|
Import
|
377.5
|
|
|
355.7
|
|
|
21.8
|
|
|
6
|
%
|
|
Domestic
|
164.9
|
|
|
165.0
|
|
|
(0.1)
|
|
|
—
|
%
|
|
Total new vehicle
|
815.2
|
|
|
805.4
|
|
|
9.8
|
|
|
1
|
%
|
|
Used Vehicle:
|
|
|
|
|
|
|
|
|
Retail
|
405.9
|
|
|
389.5
|
|
|
16.4
|
|
|
4
|
%
|
|
Wholesale
|
44.9
|
|
|
45.8
|
|
|
(0.9)
|
|
|
(2)
|
%
|
|
Total used vehicle
|
450.8
|
|
|
435.3
|
|
|
15.5
|
|
|
4
|
%
|
|
Parts and service
|
189.0
|
|
|
179.2
|
|
|
9.8
|
|
|
5
|
%
|
|
Finance and insurance
|
64.6
|
|
|
59.2
|
|
|
5.4
|
|
|
9
|
%
|
|
Total revenue
|
$
|
1,519.6
|
|
|
$
|
1,479.1
|
|
|
$
|
40.5
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
|
|
|
|
|
New vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
$
|
18.1
|
|
|
$
|
19.3
|
|
|
$
|
(1.2)
|
|
|
(6)
|
%
|
|
Import
|
14.2
|
|
|
16.4
|
|
|
(2.2)
|
|
|
(13)
|
%
|
|
Domestic
|
7.1
|
|
|
7.5
|
|
|
(0.4)
|
|
|
(5)
|
%
|
|
Total new vehicle
|
39.4
|
|
|
43.2
|
|
|
(3.8)
|
|
|
(9)
|
%
|
|
Used Vehicle:
|
|
|
|
|
|
|
|
|
Retail
|
32.0
|
|
|
32.6
|
|
|
(0.6)
|
|
|
(2)
|
%
|
|
Wholesale
|
0.9
|
|
|
1.3
|
|
|
(0.4)
|
|
|
(31)
|
%
|
|
Total used vehicle
|
32.9
|
|
|
33.9
|
|
|
(1.0)
|
|
|
(3)
|
%
|
|
Parts and service:
|
|
|
|
|
|
|
|
|
Customer pay
|
65.3
|
|
|
63.1
|
|
|
2.2
|
|
|
3
|
%
|
|
Warranty
|
20.1
|
|
|
16.5
|
|
|
3.6
|
|
|
22
|
%
|
|
Wholesale parts
|
5.2
|
|
|
5.0
|
|
|
0.2
|
|
|
4
|
%
|
|
Parts and service, excluding reconditioning and
preparation
|
90.6
|
|
|
84.6
|
|
|
6.0
|
|
|
7
|
%
|
|
Reconditioning and preparation
|
27.6
|
|
|
27.8
|
|
|
(0.2)
|
|
|
(1)
|
%
|
|
Total parts and service
|
118.2
|
|
|
112.4
|
|
|
5.8
|
|
|
5
|
%
|
|
Finance and insurance
|
64.6
|
|
|
59.2
|
|
|
5.4
|
|
|
9
|
%
|
|
Total gross profit
|
$
|
255.1
|
|
|
$
|
248.7
|
|
|
$
|
6.4
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
SG&A expense
|
$
|
177.4
|
|
|
$
|
172.3
|
|
|
$
|
5.1
|
|
|
3
|
%
|
|
SG&A expense as a percentage of gross profit
|
69.5
|
%
|
|
69.3
|
%
|
|
20
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store amounts consist of information from dealerships for identical
months in each comparative period, commencing with the first month we owned the dealership. Additionally, amounts related
to divested dealerships are excluded from each comparative period.
|
|
ASBURY AUTOMOTIVE GROUP, INC.
SAME STORE OPERATING HIGHLIGHTS (Continued)
(Unaudited)
|
|
|
For the Three Months Ended
March 31,
|
|
Increase
(Decrease)
|
|
%
Change
|
|
2017
|
|
2016
|
|
|
|
Unit sales
|
|
|
|
|
|
|
|
|
New vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
5,114
|
|
|
5,517
|
|
|
(403)
|
|
|
(7)
|
%
|
|
Import
|
13,566
|
|
|
12,914
|
|
|
652
|
|
|
5
|
%
|
|
Domestic
|
4,281
|
|
|
4,587
|
|
|
(306)
|
|
|
(7)
|
%
|
|
Total new vehicle
|
22,961
|
|
|
23,018
|
|
|
(57)
|
|
|
—
|
%
|
|
Used vehicle retail
|
19,555
|
|
|
18,447
|
|
|
1,108
|
|
|
6
|
%
|
|
Used to new ratio
|
85.2
|
%
|
|
80.1
|
%
|
|
510
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
Average selling price
|
|
|
|
|
|
|
|
|
New vehicle
|
$
|
35,504
|
|
|
$
|
34,990
|
|
|
$
|
514
|
|
|
1
|
%
|
|
Used vehicle retail
|
20,757
|
|
|
21,115
|
|
|
(358)
|
|
|
(2)
|
%
|
|
|
|
|
|
|
|
|
|
Average gross profit per unit
|
|
|
|
|
|
|
|
|
New vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
$
|
3,539
|
|
|
$
|
3,498
|
|
|
$
|
41
|
|
|
1
|
%
|
|
Import
|
1,047
|
|
|
1,270
|
|
|
(223)
|
|
|
(18)
|
%
|
|
Domestic
|
1,658
|
|
|
1,635
|
|
|
23
|
|
|
1
|
%
|
|
Total new vehicle
|
1,716
|
|
|
1,877
|
|
|
(161)
|
|
|
(9)
|
%
|
|
Used vehicle retail
|
1,636
|
|
|
1,767
|
|
|
(131)
|
|
|
(7)
|
%
|
|
Finance and insurance, net
|
1,519
|
|
|
1,428
|
|
|
91
|
|
|
6
|
%
|
|
Front end yield (1)
|
3,199
|
|
|
3,256
|
|
|
(57)
|
|
|
(2)
|
%
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
|
|
|
|
|
|
New vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
6.6
|
%
|
|
6.8
|
%
|
|
(20)
|
bps
|
|
|
|
Import
|
3.8
|
%
|
|
4.6
|
%
|
|
(80)
|
bps
|
|
|
|
Domestic
|
4.3
|
%
|
|
4.5
|
%
|
|
(20)
|
bps
|
|
|
|
Total new vehicle
|
4.8
|
%
|
|
5.4
|
%
|
|
(60)
|
bps
|
|
|
|
Used vehicle retail
|
7.9
|
%
|
|
8.4
|
%
|
|
(50)
|
bps
|
|
|
|
Parts and service:
|
|
|
|
|
|
|
|
|
Parts and service, excluding reconditioning and preparation
|
47.9
|
%
|
|
47.2
|
%
|
|
70
|
bps
|
|
|
|
Parts and service, including reconditioning and preparation
|
62.5
|
%
|
|
62.7
|
%
|
|
(20)
|
bps
|
|
|
|
Total gross profit margin
|
16.8
|
%
|
|
16.8
|
%
|
|
—
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store amounts consist of information from dealerships for identical
months in each comparative period, commencing with the first month we owned the dealership. Additionally, amounts related
to divested dealerships are excluded from each comparative period.
|
|
|
(1) Front end yield is calculated as gross profit from new
vehicles, used retail vehicles and finance and insurance (net),
divided by combined new and used retail unit sales.
|
|
ASBURY AUTOMOTIVE GROUP, INC.
Additional Disclosures (In millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
March 31,
2017
|
|
December 31,
2016
|
|
Increase
(Decrease)
|
|
% Change
|
|
SELECTED BALANCE SHEET DATA
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
3.1
|
|
$
|
3.4
|
|
$
|
(0.3)
|
|
(9)
|
%
|
|
New vehicle inventory
|
780.2
|
|
720.6
|
|
59.6
|
|
8
|
%
|
|
Used vehicle inventory
|
146.5
|
|
132.7
|
|
13.8
|
|
10
|
%
|
|
Parts inventory
|
42.4
|
|
41.6
|
|
0.8
|
|
2
|
%
|
|
Total current assets
|
1,348.6
|
|
1,332.4
|
|
16.2
|
|
1
|
%
|
|
Floor plan notes payable
|
811.6
|
|
781.8
|
|
29.8
|
|
4
|
%
|
|
Total current liabilities
|
1,153.4
|
|
1,104.9
|
|
48.5
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
CAPITALIZATION:
|
|
|
|
|
|
|
|
|
Long-term debt (including current portion)
|
$
|
923.0
|
|
$
|
926.7
|
|
$
|
(3.7)
|
|
—
|
%
|
|
Shareholders' equity
|
298.2
|
|
279.7
|
|
18.5
|
|
7
|
%
|
|
Total
|
$
|
1,221.2
|
|
$
|
1,206.4
|
|
$
|
14.8
|
|
1
|
%
|
|
March 31, 2017
|
|
December 31, 2016
|
|
DAYS SUPPLY
|
|
|
|
|
New vehicle inventory
|
74
|
|
61
|
|
Used vehicle inventory
|
32
|
|
30
|
|
|
|
|
|
Days supply of inventory is calculated based on new and used inventory
levels at the end of each reporting period and a 30-day historical cost of sales.
|
|
Brand Mix - New Vehicle Revenue by Brand-
|
|
|
|
For the Three Months Ended
March 31,
|
|
2017
|
|
2016
|
|
Luxury:
|
|
|
|
|
Mercedes-Benz
|
7
|
%
|
|
7
|
%
|
|
Lexus
|
6
|
%
|
|
7
|
%
|
|
BMW
|
5
|
%
|
|
7
|
%
|
|
Acura
|
4
|
%
|
|
4
|
%
|
|
Infiniti
|
3
|
%
|
|
4
|
%
|
|
Other luxury
|
8
|
%
|
|
6
|
%
|
|
Total luxury
|
33
|
%
|
|
35
|
%
|
|
Imports:
|
|
|
|
|
Honda
|
17
|
%
|
|
16
|
%
|
|
Nissan
|
13
|
%
|
|
11
|
%
|
|
Toyota
|
11
|
%
|
|
12
|
%
|
|
Other imports
|
5
|
%
|
|
5
|
%
|
|
Total imports
|
46
|
%
|
|
44
|
%
|
|
Domestic:
|
|
|
|
|
Ford
|
12
|
%
|
|
13
|
%
|
|
Chevrolet
|
4
|
%
|
|
2
|
%
|
|
Dodge
|
3
|
%
|
|
2
|
%
|
|
Other domestics
|
2
|
%
|
|
4
|
%
|
|
Total domestic
|
21
|
%
|
|
21
|
%
|
|
Total New Vehicle Revenue
|
100
|
%
|
|
100
|
%
|
ASBURY AUTOMOTIVE GROUP INC.
Supplemental Disclosures
(Unaudited)
Non-GAAP Financial Disclosure and Reconciliation
In addition to evaluating the financial condition and results of our operations in accordance with GAAP, from time to time
management evaluates and analyzes results and any impact on the Company of strategic decisions and actions relating to, among
other things, cost reduction, growth, and profitability improvement initiatives, and other events outside of normal, or "core,"
business and operations, by considering certain alternative financial measures not prepared in accordance with GAAP. These
measures include "Adjusted leverage ratio," "Adjusted income from operations," "Adjusted income from continuing operations," and
"Adjusted diluted earnings per share ("EPS") from continuing operations." Further, management assesses the organic growth of our
revenue and gross profit on a same store basis. We believe that our assessment on a same store basis represents an important
indicator of comparative financial performance and provides relevant information to assess our performance at our existing
locations. Same store amounts consist of information from dealerships for identical months in each comparative period, commencing
with the first month we owned the dealership. Additionally, amounts related to divested dealerships are excluded from each
comparative period. Non-GAAP measures do not have definitions under GAAP and may be defined differently by and not be comparable
to similarly titled measures used by other companies. As a result, any non-GAAP financial measures considered and evaluated by
management are reviewed in conjunction with a review of the most directly comparable measures calculated in accordance with GAAP.
Management cautions investors not to place undue reliance on such non-GAAP measures, but also to consider them with the most
directly comparable GAAP measures. In their evaluation of results from time to time, management excludes items that do not arise
directly from core operations, or are otherwise of an unusual or non-recurring nature. Because these non-core, unusual or
non-recurring charges and gains materially affect Asbury's financial condition or results in the specific period in which they
are recognized, management also evaluates, and makes resource allocation and performance evaluation decisions based on, the
related non-GAAP measures excluding such items. In addition to using such non-GAAP measures to evaluate results in a
specific period, management believes that such measures may provide more complete and consistent comparisons of operational
performance on a period-over-period historical basis and a better indication of expected future trends. Management discloses
these non-GAAP measures, and the related reconciliations, because it believes investors use these metrics in evaluating
longer-term period-over-period performance, and to allow investors to better understand and evaluate the information used by
management to assess operating performance.
The following tables provide reconciliations for our non-GAAP metrics:
|
For the Twelve Months Ended
|
|
March 31, 2017
|
|
December 31, 2016
|
|
(Dollars in millions)
|
|
Adjusted leverage ratio:
|
|
|
|
|
Long-term debt (including current portion)
|
$
|
923.0
|
|
$
|
926.7
|
|
|
|
|
|
Calculation of earnings before interest, taxes, depreciation and
amortization
("EBITDA"):
|
|
|
|
|
Income from continuing operations
|
$
|
170.2
|
|
$
|
167.2
|
|
|
|
|
|
Add:
|
|
|
|
|
Depreciation and amortization
|
31.0
|
|
30.7
|
|
Income tax expense
|
100.4
|
|
100.6
|
|
Swap and other interest expense
|
56.0
|
|
56.2
|
|
Earnings before interest, taxes, depreciation and amortization
("EBITDA")
|
$
|
357.6
|
|
$
|
354.7
|
|
|
|
|
|
Non-core items - (income) expense:
|
|
|
|
|
Legal settlements
|
$
|
(7.5)
|
|
$
|
(6.6)
|
|
Real estate-related charges
|
2.3
|
|
5.7
|
|
Gain on divestitures
|
(45.5)
|
|
(45.5)
|
|
Total non-core items
|
(50.7)
|
|
(46.4)
|
|
|
|
|
|
Adjusted EBITDA
|
$
|
306.9
|
|
$
|
308.3
|
|
|
|
|
|
Adjusted leverage ratio
|
3.0
|
|
3.0
|
|
For the Three Months Ended
March 31,
|
|
2017
|
|
2016
|
|
(In millions, except per share data)
|
|
Adjusted income from operations:
|
|
|
|
|
Income from operations
|
$
|
72.3
|
|
$
|
68.9
|
|
Real estate-related charges
|
—
|
|
3.4
|
|
Legal settlements
|
(0.9)
|
|
—
|
|
Adjusted income from operations
|
$
|
71.4
|
|
$
|
72.3
|
|
|
|
|
|
Adjusted income from continuing operations:
|
|
|
|
|
Income from continuing operations
|
$
|
34.0
|
|
$
|
31.1
|
|
|
|
|
|
Non-core items - (income) expense:
|
|
|
|
|
Legal settlements
|
(0.9)
|
|
—
|
|
Real estate-related charges
|
—
|
|
3.4
|
|
Income tax benefit
|
0.3
|
|
(1.3)
|
|
Total non-core items
|
(0.6)
|
|
2.1
|
|
Adjusted income from continuing operations
|
$
|
33.4
|
|
$
|
33.2
|
|
|
|
|
|
Adjusted diluted earnings per share (EPS) from continuing
operations:
|
|
|
|
|
Net income
|
$
|
1.61
|
|
$
|
1.27
|
|
Discontinued operations, net of tax
|
—
|
|
—
|
|
Income from continuing operations
|
$
|
1.61
|
|
$
|
1.27
|
|
|
|
|
|
Total non-core items
|
(0.03)
|
|
0.09
|
|
Adjusted diluted EPS from continuing operations
|
$
|
1.58
|
|
$
|
1.36
|
|
|
|
|
|
Weighted average common shares outstanding - diluted
|
21.1
|
|
24.4
|
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/asbury-automotive-group-announces-first-quarter-2017-financial-results-300446804.html
SOURCE Asbury Automotive Group, Inc.