DULUTH, Ga., Feb. 6, 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 fourth quarter 2018 of $40.4 million ($2.06 per diluted
share) compared to $42.5 million ($2.03 per diluted share) in
the prior year quarter. It also reported adjusted net income (a non-GAAP measure) for the fourth quarter 2018 of $43.2 million ($2.20 per diluted share) compared to $37.8
million ($1.81 per diluted share) in the prior year quarter, a 22% increase in adjusted
earnings per share.
Net income for the fourth quarter 2018 was adjusted for a $3.7 million pre-tax charge for
franchise rights impairments ($0.14 per diluted share). Net income for the fourth quarter 2017 was
adjusted for a $5.1 million pre-tax charge for franchise rights impairments ($0.15 per diluted share) and a $7.9 million benefit ($0.37 per diluted share) related to adjustments to deferred tax balances as a result of changes to the tax
law.
On January 1, 2018, the company adopted ASC 606 for revenue recognition which impacted F&I
and parts and service revenue and gross profit. The net impact of adopting ASC 606 in the fourth quarter was to increase net
income by $1.2 million or $0.06 per diluted share.
"We closed out 2018 with a strong performance delivering 22% adjusted EPS growth in the quarter," said David Hult, Asbury's President and Chief Executive Officer. "During 2018, we acquired three dealerships,
repurchased approximately $105 million of our shares, and further developed our omni-channel
capabilities. In a relatively flat SAAR environment we maintained our industry leading operating margins and grew adjusted
EPS 31%. This performance is a direct result of our team's hard work, dedication, and commitment to continuous improvement.
Going forward, we will continue to execute our two-part strategy: drive operational excellence and deploy capital to its highest
returns."
Fourth Quarter 2018 Operational Summary
All stores:
- Revenue increased 7%; gross profit increased 5%
- New vehicle revenue increased 6%; gross profit decreased 6%
- Used vehicle retail revenue increased 10%; gross profit increased 10%
- Finance and insurance revenue and gross profit increased 6%
- Parts and service revenue increased 7%; gross profit increased 7%
- SG&A as a percentage of gross profit increased 90 basis points to 68.2%
- Adjusted income from operations as a percentage of revenue was 4.5%
- Adjusted EPS from continuing operations increased 22%
Same store:
- Revenue increased 4%; gross profit increased 2%
- New vehicle revenue increased 3%; gross profit decreased 7%
- Used vehicle retail revenue increased 7%; gross profit increased 7%
- Finance and insurance revenue and gross profit increased 3%
- Parts and service revenue increased 5%; gross profit increased 5%
Strategic Highlights:
- In Q4 2018, we repurchased $48 million of common stock
- Signed an agreement to acquire four stores in the Indianapolis market that we expect to
close in Q1 2019, subject to customary closing conditions. We expect these dealerships will generate approximately $250 million in annualized revenue.
- Omni-channel initiatives helped drive results, reduce costs, and improve efficiencies
For the full year 2018, the Company reported net income of $168.0 million ($8.28 per diluted share) compared to $139.1 million ($6.62 per diluted share) in the prior year period. Adjusted net income (a non-GAAP measure) for 2018 was
$170.8 million ($8.41 per diluted share) compared to $135.1 million ($6.43 per diluted share) in the prior year period, a 31% increase
in adjusted EPS.
Additional commentary regarding the fourth quarter and full-year results will be provided during the earnings conference call
on February 6, 2019 at 10:00 a.m. The conference call will be simulcast live on the internet
and can be accessed at 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 (323) 994-2131 (domestic), or (800) 347-6311
(international); passcode - 1070155. 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 - 1070155.
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 83 dealerships, consisting of 97
franchises, representing 29 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 December 31,
|
|
Increase
(Decrease)
|
|
%
Change
|
|
2018
|
|
2017
|
|
|
|
REVENUE:
|
|
|
|
|
|
|
|
|
New vehicle
|
$
|
1,022.4
|
|
|
$
|
964.1
|
|
|
$
|
58.3
|
|
|
6
|
%
|
|
Used vehicle:
|
|
|
|
|
|
|
|
|
Retail
|
427.9
|
|
|
389.6
|
|
|
38.3
|
|
|
10
|
%
|
|
Wholesale
|
45.5
|
|
|
47.9
|
|
|
(2.4)
|
|
|
(5)
|
%
|
|
Total used vehicle
|
473.4
|
|
|
437.5
|
|
|
35.9
|
|
|
8
|
%
|
|
Parts and service
|
211.1
|
|
|
196.6
|
|
|
14.5
|
|
|
7
|
%
|
|
Finance and insurance, net
|
77.3
|
|
|
72.7
|
|
|
4.6
|
|
|
6
|
%
|
|
TOTAL REVENUE
|
1,784.2
|
|
|
1,670.9
|
|
|
113.3
|
|
|
7
|
%
|
|
GROSS PROFIT:
|
|
|
|
|
|
|
|
|
New vehicle
|
43.9
|
|
|
46.6
|
|
|
(2.7)
|
|
|
(6)
|
%
|
|
Used vehicle:
|
|
|
|
|
|
|
|
|
Retail
|
29.3
|
|
|
26.7
|
|
|
2.6
|
|
|
10
|
%
|
|
Wholesale
|
—
|
|
|
(0.2)
|
|
|
0.2
|
|
|
100
|
%
|
|
Total used vehicle
|
29.3
|
|
|
26.5
|
|
|
2.8
|
|
|
11
|
%
|
|
Parts and service
|
131.3
|
|
|
122.6
|
|
|
8.7
|
|
|
7
|
%
|
|
Finance and insurance, net
|
77.3
|
|
|
72.7
|
|
|
4.6
|
|
|
6
|
%
|
|
TOTAL GROSS PROFIT
|
281.8
|
|
|
268.4
|
|
|
13.4
|
|
|
5
|
%
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
192.2
|
|
|
180.5
|
|
|
11.7
|
|
|
6
|
%
|
|
Depreciation and amortization
|
8.5
|
|
|
8.1
|
|
|
0.4
|
|
|
5
|
%
|
|
Franchise rights impairment
|
3.7
|
|
|
5.1
|
|
|
(1.4)
|
|
|
(27)
|
%
|
|
Other operating (income) expenses, net
|
0.1
|
|
|
0.6
|
|
|
(0.5)
|
|
|
(83)
|
%
|
|
INCOME FROM OPERATIONS
|
77.3
|
|
|
74.1
|
|
|
3.2
|
|
|
4
|
%
|
|
OTHER EXPENSES:
|
|
|
|
|
|
|
|
|
Floor plan interest expense
|
9.5
|
|
|
5.5
|
|
|
4.0
|
|
|
73
|
%
|
|
Other interest expense, net
|
13.7
|
|
|
13.8
|
|
|
(0.1)
|
|
|
(1)
|
%
|
|
Swap interest expense
|
—
|
|
|
0.4
|
|
|
(0.4)
|
|
|
(100)
|
%
|
|
Total other expenses, net
|
23.2
|
|
|
19.7
|
|
|
3.5
|
|
|
18
|
%
|
|
INCOME BEFORE INCOME TAXES
|
54.1
|
|
|
54.4
|
|
|
(0.3)
|
|
|
(1)
|
%
|
|
Income tax expense
|
13.7
|
|
|
11.9
|
|
|
1.8
|
|
|
15
|
%
|
|
NET INCOME
|
$
|
40.4
|
|
|
$
|
42.5
|
|
|
$
|
(2.1)
|
|
|
(5)
|
%
|
|
EARNINGS PER COMMON SHARE:
|
|
|
|
|
|
|
|
|
Basic—
|
|
|
|
|
|
|
|
|
Net income
|
$
|
2.09
|
|
|
$
|
2.06
|
|
|
$
|
0.03
|
|
|
1
|
%
|
|
Diluted—
|
|
|
|
|
|
|
|
|
Net income
|
$
|
2.06
|
|
|
$
|
2.03
|
|
|
$
|
0.03
|
|
|
1
|
%
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
19.3
|
|
|
20.6
|
|
|
(1.3)
|
|
|
(6)
|
%
|
|
Restricted stock
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
%
|
|
Performance share units
|
0.2
|
|
|
0.2
|
|
|
—
|
|
|
—
|
%
|
|
Diluted
|
19.6
|
|
|
20.9
|
|
|
(1.3)
|
|
|
(6)
|
%
|
|
|
|
|
ASBURY AUTOMOTIVE GROUP, INC.
|
|
KEY OPERATING HIGHLIGHTS (In millions, except per unit data)
|
|
(Unaudited)
|
|
|
For the Three Months
Ended December 31,
|
|
Increase
(Decrease)
|
|
%
Change
|
|
2018
|
|
2017
|
|
|
|
Unit sales
|
|
|
|
|
|
|
|
|
New vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
6,452
|
|
|
6,408
|
|
|
44
|
|
|
1
|
%
|
|
Import
|
16,394
|
|
|
15,181
|
|
|
1,213
|
|
|
8
|
%
|
|
Domestic
|
4,951
|
|
|
4,602
|
|
|
349
|
|
|
8
|
%
|
|
Total new vehicle
|
27,797
|
|
|
26,191
|
|
|
1,606
|
|
|
6
|
%
|
|
Used vehicle retail
|
19,298
|
|
|
17,822
|
|
|
1,476
|
|
|
8
|
%
|
|
Used to new ratio
|
69.4
|
%
|
|
68.0
|
%
|
|
140 bps
|
|
|
|
|
Average selling price
|
|
|
|
|
|
|
|
|
New vehicle
|
$
|
36,781
|
|
|
$
|
36,810
|
|
|
$
|
(29)
|
|
|
—
|
%
|
|
Used vehicle retail
|
22,173
|
|
|
21,861
|
|
|
312
|
|
|
1
|
%
|
|
Average gross profit per unit
|
|
|
|
|
|
|
|
|
New vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
$
|
3,487
|
|
|
$
|
3,777
|
|
|
$
|
(290)
|
|
|
(8)
|
%
|
|
Import
|
830
|
|
|
922
|
|
|
(92)
|
|
|
(10)
|
%
|
|
Domestic
|
1,575
|
|
|
1,825
|
|
|
(250)
|
|
|
(14)
|
%
|
|
Total new vehicle
|
1,579
|
|
|
1,779
|
|
|
(200)
|
|
|
(11)
|
%
|
|
Used vehicle retail
|
1,518
|
|
|
1,498
|
|
|
20
|
|
|
1
|
%
|
|
Finance and insurance, net
|
1,641
|
|
|
1,652
|
|
|
(11)
|
|
|
(1)
|
%
|
|
Front end yield (1)
|
3,196
|
|
|
3,317
|
|
|
(121)
|
|
|
(4)
|
%
|
|
Gross margin
|
|
|
|
|
|
|
|
|
New vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
6.4
|
%
|
|
7.0
|
%
|
|
(60) bps
|
|
|
|
|
Import
|
2.9
|
%
|
|
3.2
|
%
|
|
(30) bps
|
|
|
|
|
Domestic
|
3.9
|
%
|
|
4.6
|
%
|
|
(70) bps
|
|
|
|
|
Total new vehicle
|
4.3
|
%
|
|
4.8
|
%
|
|
(50) bps
|
|
|
|
|
Used vehicle retail
|
6.8
|
%
|
|
6.9
|
%
|
|
(10) bps
|
|
|
|
|
Parts and service
|
62.2
|
%
|
|
62.4
|
%
|
|
(20) bps
|
|
|
|
|
Total gross profit margin
|
15.8
|
%
|
|
16.1
|
%
|
|
(30) bps
|
|
|
|
|
SG&A metrics
|
|
|
|
|
|
|
|
|
Rent expense
|
$
|
6.5
|
|
|
$
|
6.5
|
|
|
$
|
—
|
|
|
—
|
%
|
|
Total SG&A as a percentage of gross profit
|
68.2
|
%
|
|
67.3
|
%
|
|
90 bps
|
|
|
|
|
SG&A, excluding rent expense as a percentage of gross profit
|
65.9
|
%
|
|
64.8
|
%
|
|
110 bps
|
|
|
|
|
Operating metrics
|
|
|
|
|
|
|
|
|
Income from operations as a percentage of revenue
|
4.3
|
%
|
|
4.4
|
%
|
|
(10) bps
|
|
|
|
|
Income from operations as a percentage of gross profit
|
27.4
|
%
|
|
27.6
|
%
|
|
(20) bps
|
|
|
|
|
Adjusted income from operations as a percentage of revenue
|
4.5
|
%
|
|
4.7
|
%
|
|
(20) bps
|
|
|
|
|
Adjusted income from operations as a percentage of gross profit
|
28.7
|
%
|
|
29.5
|
%
|
|
(80) bps
|
|
|
|
|
Revenue mix
|
|
|
|
|
|
|
|
|
New vehicle
|
57.3
|
%
|
|
57.7
|
%
|
|
|
|
|
|
Used vehicle retail
|
24.0
|
%
|
|
23.2
|
%
|
|
|
|
|
|
Used vehicle wholesale
|
2.6
|
%
|
|
2.9
|
%
|
|
|
|
|
|
Parts and service
|
11.8
|
%
|
|
11.8
|
%
|
|
|
|
|
|
Finance and insurance
|
4.3
|
%
|
|
4.4
|
%
|
|
|
|
|
|
Total revenue
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
Gross profit mix
|
|
|
|
|
|
|
|
|
New vehicle
|
15.6
|
%
|
|
17.4
|
%
|
|
|
|
|
|
Used vehicle retail
|
10.4
|
%
|
|
9.9
|
%
|
|
|
|
|
|
Used vehicle wholesale
|
—
|
%
|
|
(0.1)
|
%
|
|
|
|
|
|
Parts and service
|
46.6
|
%
|
|
45.7
|
%
|
|
|
|
|
|
Finance and insurance
|
27.4
|
%
|
|
27.1
|
%
|
|
|
|
|
|
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 Three Months
Ended December 31,
|
|
Increase
(Decrease)
|
|
%
Change
|
|
2018
|
|
2017
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
New vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
$
|
351.5
|
|
|
$
|
347.9
|
|
|
$
|
3.6
|
|
|
1
|
%
|
|
Import
|
447.4
|
|
|
431.5
|
|
|
15.9
|
|
|
4
|
%
|
|
Domestic
|
193.6
|
|
|
184.6
|
|
|
9.0
|
|
|
5
|
%
|
|
Total new vehicle
|
992.5
|
|
|
964.0
|
|
|
28.5
|
|
|
3
|
%
|
|
Used Vehicle:
|
|
|
|
|
|
|
|
|
Retail
|
415.8
|
|
|
389.6
|
|
|
26.2
|
|
|
7
|
%
|
|
Wholesale
|
44.8
|
|
|
47.9
|
|
|
(3.1)
|
|
|
(6)
|
%
|
|
Total used vehicle
|
460.6
|
|
|
437.5
|
|
|
23.1
|
|
|
5
|
%
|
|
Parts and service
|
205.9
|
|
|
196.6
|
|
|
9.3
|
|
|
5
|
%
|
|
Finance and insurance
|
74.8
|
|
|
72.8
|
|
|
2.0
|
|
|
3
|
%
|
|
Total revenue
|
$
|
1,733.8
|
|
|
$
|
1,670.9
|
|
|
$
|
62.9
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
|
|
|
|
|
New vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
$
|
22.5
|
|
|
$
|
24.2
|
|
|
$
|
(1.7)
|
|
|
(7)
|
%
|
|
Import
|
12.9
|
|
|
13.9
|
|
|
(1.0)
|
|
|
(7)
|
%
|
|
Domestic
|
7.7
|
|
|
8.4
|
|
|
(0.7)
|
|
|
(8)
|
%
|
|
Total new vehicle
|
43.1
|
|
|
46.5
|
|
|
(3.4)
|
|
|
(7)
|
%
|
|
Used Vehicle:
|
|
|
|
|
|
|
|
|
Retail
|
28.7
|
|
|
26.7
|
|
|
2.0
|
|
|
7
|
%
|
|
Wholesale
|
—
|
|
|
(0.1)
|
|
|
0.1
|
|
|
100
|
%
|
|
Total used vehicle
|
28.7
|
|
|
26.6
|
|
|
2.1
|
|
|
8
|
%
|
|
Parts and service:
|
|
|
|
|
|
|
|
|
Customer pay
|
72.4
|
|
|
68.6
|
|
|
3.8
|
|
|
6
|
%
|
|
Warranty
|
19.9
|
|
|
20.0
|
|
|
(0.1)
|
|
|
(1)
|
%
|
|
Wholesale parts
|
5.8
|
|
|
5.4
|
|
|
0.4
|
|
|
7
|
%
|
|
Parts and service, excluding reconditioning and
preparation
|
98.1
|
|
|
94.0
|
|
|
4.1
|
|
|
4
|
%
|
|
Reconditioning and preparation
|
30.1
|
|
|
28.6
|
|
|
1.5
|
|
|
5
|
%
|
|
Total parts and service
|
128.2
|
|
|
122.6
|
|
|
5.6
|
|
|
5
|
%
|
|
Finance and insurance
|
74.8
|
|
|
72.8
|
|
|
2.0
|
|
|
3
|
%
|
|
Total gross profit
|
$
|
274.8
|
|
|
$
|
268.5
|
|
|
$
|
6.3
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
SG&A expense
|
$
|
187.0
|
|
|
$
|
180.4
|
|
|
$
|
6.6
|
|
|
4
|
%
|
|
SG&A expense as a percentage of gross profit
|
68.0
|
%
|
|
67.2
|
%
|
|
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 Three Months
Ended December 31,
|
|
Increase
(Decrease)
|
|
%
Change
|
|
2018
|
|
2017
|
|
|
|
Unit sales
|
|
|
|
|
|
|
|
|
New vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
6,452
|
|
|
6,408
|
|
|
44
|
|
|
1
|
%
|
|
Import
|
15,572
|
|
|
15,181
|
|
|
391
|
|
|
3
|
%
|
|
Domestic
|
4,753
|
|
|
4,602
|
|
|
151
|
|
|
3
|
%
|
|
Total new vehicle
|
26,777
|
|
|
26,191
|
|
|
586
|
|
|
2
|
%
|
|
Used vehicle retail
|
18,624
|
|
|
17,822
|
|
|
802
|
|
|
5
|
%
|
|
Used to new ratio
|
69.6
|
%
|
|
68.0
|
%
|
|
160 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling price
|
|
|
|
|
|
|
|
|
New vehicle
|
$
|
37,065
|
|
|
$
|
36,807
|
|
|
$
|
258
|
|
|
1
|
%
|
|
Used vehicle retail
|
22,326
|
|
|
21,861
|
|
|
465
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
Average gross profit per unit
|
|
|
|
|
|
|
|
|
New vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
$
|
3,487
|
|
|
$
|
3,777
|
|
|
$
|
(290)
|
|
|
(8)
|
%
|
|
Import
|
828
|
|
|
916
|
|
|
(88)
|
|
|
(10)
|
%
|
|
Domestic
|
1,620
|
|
|
1,825
|
|
|
(205)
|
|
|
(11)
|
%
|
|
Total new vehicle
|
1,610
|
|
|
1,775
|
|
|
(165)
|
|
|
(9)
|
%
|
|
Used vehicle retail
|
1,541
|
|
|
1,498
|
|
|
43
|
|
|
3
|
%
|
|
Finance and insurance, net
|
1,648
|
|
|
1,654
|
|
|
(6)
|
|
|
—
|
%
|
|
Front end yield (1)
|
3,229
|
|
|
3,317
|
|
|
(88)
|
|
|
(3)
|
%
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
|
|
|
|
|
|
New vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
6.4
|
%
|
|
7.0
|
%
|
|
(60) bps
|
|
|
|
|
Import
|
2.9
|
%
|
|
3.2
|
%
|
|
(30) bps
|
|
|
|
|
Domestic
|
4.0
|
%
|
|
4.6
|
%
|
|
(60) bps
|
|
|
|
|
Total new vehicle
|
4.3
|
%
|
|
4.8
|
%
|
|
(50) bps
|
|
|
|
|
Used vehicle retail
|
6.9
|
%
|
|
6.9
|
%
|
|
— bps
|
|
|
|
|
Parts and service:
|
|
|
|
|
|
|
|
|
Parts and service, excluding reconditioning and preparation
|
47.6
|
%
|
|
47.8
|
%
|
|
(20) bps
|
|
|
|
|
Parts and service, including reconditioning and preparation
|
62.3
|
%
|
|
62.4
|
%
|
|
(10) bps
|
|
|
|
|
Total gross profit margin
|
15.8
|
%
|
|
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.
|
|
CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share
data)
|
|
(Unaudited)
|
|
|
For the Twelve Months
Ended December 31,
|
|
Increase
(Decrease)
|
|
%
Change
|
|
2018
|
|
2017
|
|
|
|
REVENUE:
|
|
|
|
|
|
|
|
|
New vehicle
|
$
|
3,788.7
|
|
|
$
|
3,561.1
|
|
|
$
|
227.6
|
|
|
6
|
%
|
|
Used vehicle:
|
|
|
|
|
|
|
|
|
Retail
|
1,783.3
|
|
|
1,635.3
|
|
|
148.0
|
|
|
9
|
%
|
|
Wholesale
|
189.1
|
|
|
198.8
|
|
|
(9.7)
|
|
|
(5)
|
%
|
|
Total used vehicle
|
1,972.4
|
|
|
1,834.1
|
|
|
138.3
|
|
|
8
|
%
|
|
Parts and service
|
821.0
|
|
|
786.1
|
|
|
34.9
|
|
|
4
|
%
|
|
Finance and insurance, net
|
292.3
|
|
|
275.2
|
|
|
17.1
|
|
|
6
|
%
|
|
TOTAL REVENUE
|
6,874.4
|
|
|
6,456.5
|
|
|
417.9
|
|
|
6
|
%
|
|
GROSS PROFIT:
|
|
|
|
|
|
|
|
|
New vehicle
|
165.2
|
|
|
169.0
|
|
|
(3.8)
|
|
|
(2)
|
%
|
|
Used vehicle:
|
|
|
|
|
|
|
|
|
Retail
|
127.8
|
|
|
121.1
|
|
|
6.7
|
|
|
6
|
%
|
|
Wholesale
|
1.9
|
|
|
0.8
|
|
|
1.1
|
|
|
138
|
%
|
|
Total used vehicle
|
129.7
|
|
|
121.9
|
|
|
7.8
|
|
|
6
|
%
|
|
Parts and service
|
515.8
|
|
|
489.8
|
|
|
26.0
|
|
|
5
|
%
|
|
Finance and insurance, net
|
292.3
|
|
|
275.2
|
|
|
17.1
|
|
|
6
|
%
|
|
TOTAL GROSS PROFIT
|
1,103.0
|
|
|
1,055.9
|
|
|
47.1
|
|
|
4
|
%
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
755.8
|
|
|
729.7
|
|
|
26.1
|
|
|
4
|
%
|
|
Depreciation and amortization
|
33.7
|
|
|
32.1
|
|
|
1.6
|
|
|
5
|
%
|
|
Franchise rights impairment
|
3.7
|
|
|
5.1
|
|
|
(1.4)
|
|
|
(27)
|
%
|
|
Other operating (income) expenses, net
|
(1.1)
|
|
|
1.3
|
|
|
(2.4)
|
|
|
(185)
|
%
|
|
INCOME FROM OPERATIONS
|
310.9
|
|
|
287.7
|
|
|
23.2
|
|
|
8
|
%
|
|
OTHER EXPENSES:
|
|
|
|
|
|
|
|
|
Floor plan interest expense
|
32.5
|
|
|
22.7
|
|
|
9.8
|
|
|
43
|
%
|
|
Other interest expense, net
|
53.1
|
|
|
53.9
|
|
|
(0.8)
|
|
|
(1)
|
%
|
|
Swap interest expense
|
0.5
|
|
|
2.0
|
|
|
(1.5)
|
|
|
(75)
|
%
|
|
Total other expenses, net
|
86.1
|
|
|
78.6
|
|
|
7.5
|
|
|
10
|
%
|
|
INCOME BEFORE INCOME TAXES
|
224.8
|
|
|
209.1
|
|
|
15.7
|
|
|
8
|
%
|
|
Income tax expense
|
56.8
|
|
|
70.0
|
|
|
(13.2)
|
|
|
(19)
|
%
|
|
NET INCOME
|
$
|
168.0
|
|
|
$
|
139.1
|
|
|
$
|
28.9
|
|
|
21
|
%
|
|
EARNINGS PER COMMON SHARE:
|
|
|
|
|
|
|
|
|
Basic—
|
|
|
|
|
|
|
|
|
Net income
|
$
|
8.36
|
|
|
$
|
6.69
|
|
|
$
|
1.67
|
|
|
25
|
%
|
|
Diluted—
|
|
|
|
|
|
|
|
|
Net income
|
$
|
8.28
|
|
|
$
|
6.62
|
|
|
$
|
1.66
|
|
|
25
|
%
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
20.1
|
|
|
20.8
|
|
|
(0.7)
|
|
|
(3)
|
%
|
|
Restricted stock
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
%
|
|
Performance share units
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
%
|
|
Diluted
|
20.3
|
|
|
21.0
|
|
|
(0.7)
|
|
|
(3)
|
%
|
|
|
|
|
ASBURY AUTOMOTIVE GROUP, INC.
|
|
KEY OPERATING HIGHLIGHTS (In millions, except per unit data)
|
|
(Unaudited)
|
|
|
For the Twelve Months
Ended December 31,
|
|
Increase
(Decrease)
|
|
%
Change
|
|
2018
|
|
2017
|
|
|
|
Unit sales
|
|
|
|
|
|
|
|
|
New vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
22,979
|
|
|
22,525
|
|
|
454
|
|
|
2
|
%
|
|
Import
|
62,939
|
|
|
58,685
|
|
|
4,254
|
|
|
7
|
%
|
|
Domestic
|
19,357
|
|
|
18,765
|
|
|
592
|
|
|
3
|
%
|
|
Total new vehicle
|
105,275
|
|
|
99,975
|
|
|
5,300
|
|
|
5
|
%
|
|
Used vehicle retail
|
82,377
|
|
|
76,929
|
|
|
5,448
|
|
|
7
|
%
|
|
Used to new ratio
|
78.2
|
%
|
|
76.9
|
%
|
|
130 bps
|
|
|
|
|
Average selling price
|
|
|
|
|
|
|
|
|
New vehicle
|
$
|
35,989
|
|
|
$
|
35,620
|
|
|
$
|
369
|
|
|
1
|
%
|
|
Used vehicle retail
|
21,648
|
|
|
21,257
|
|
|
391
|
|
|
2
|
%
|
|
Average gross profit per unit
|
|
|
|
|
|
|
|
|
New vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
$
|
3,481
|
|
|
$
|
3,503
|
|
|
$
|
(22)
|
|
|
(1)
|
%
|
|
Import
|
836
|
|
|
968
|
|
|
(132)
|
|
|
(14)
|
%
|
|
Domestic
|
1,684
|
|
|
1,775
|
|
|
(91)
|
|
|
(5)
|
%
|
|
Total new vehicle
|
1,569
|
|
|
1,690
|
|
|
(121)
|
|
|
(7)
|
%
|
|
Used vehicle retail
|
1,551
|
|
|
1,574
|
|
|
(23)
|
|
|
(1)
|
%
|
|
Finance and insurance, net
|
1,558
|
|
|
1,556
|
|
|
2
|
|
|
—
|
%
|
|
Front end yield (1)
|
3,119
|
|
|
3,196
|
|
|
(77)
|
|
|
(2)
|
%
|
|
Gross margin
|
|
|
|
|
|
|
|
|
New vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
6.5
|
%
|
|
6.6
|
%
|
|
(10) bps
|
|
|
|
|
Import
|
2.9
|
%
|
|
3.5
|
%
|
|
(60) bps
|
|
|
|
|
Domestic
|
4.3
|
%
|
|
4.6
|
%
|
|
(30) bps
|
|
|
|
|
Total new vehicle
|
4.4
|
%
|
|
4.7
|
%
|
|
(30) bps
|
|
|
|
|
Used vehicle retail
|
7.2
|
%
|
|
7.4
|
%
|
|
(20) bps
|
|
|
|
|
Parts and service
|
62.8
|
%
|
|
62.3
|
%
|
|
50 bps
|
|
|
|
|
Total gross profit margin
|
16.0
|
%
|
|
16.4
|
%
|
|
(40) bps
|
|
|
|
|
SG&A metrics
|
|
|
|
|
|
|
|
|
Rent expense
|
$
|
25.6
|
|
|
$
|
26.7
|
|
|
$
|
(1.1)
|
|
|
(4)
|
%
|
|
Total SG&A as a percentage of gross profit
|
68.5
|
%
|
|
69.1
|
%
|
|
(60) bps
|
|
|
|
|
SG&A, excluding rent expense as a percentage of gross profit
|
66.2
|
%
|
|
66.6
|
%
|
|
(40) bps
|
|
|
|
|
Operating metrics
|
|
|
|
|
|
|
|
|
Income from operations as a percentage of revenue
|
4.5
|
%
|
|
4.5
|
%
|
|
— bps
|
|
|
|
|
Income from operations as a percentage of gross profit
|
28.2
|
%
|
|
27.2
|
%
|
|
100 bps
|
|
|
|
|
Adjusted income from operations as a percentage of revenue
|
4.6
|
%
|
|
4.6
|
%
|
|
— bps
|
|
|
|
|
Adjusted income from operations as a percentage of gross profit
|
28.5
|
%
|
|
27.8
|
%
|
|
70 bps
|
|
|
|
|
Revenue mix
|
|
|
|
|
|
|
|
|
New vehicle
|
55.1
|
%
|
|
55.2
|
%
|
|
|
|
|
|
Used vehicle retail
|
25.9
|
%
|
|
25.2
|
%
|
|
|
|
|
|
Used vehicle wholesale
|
2.8
|
%
|
|
3.1
|
%
|
|
|
|
|
|
Parts and service
|
11.9
|
%
|
|
12.2
|
%
|
|
|
|
|
|
Finance and insurance
|
4.3
|
%
|
|
4.3
|
%
|
|
|
|
|
|
Total revenue
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
Gross profit mix
|
|
|
|
|
|
|
|
|
New vehicle
|
15.0
|
%
|
|
16.0
|
%
|
|
|
|
|
|
Used vehicle retail
|
11.5
|
%
|
|
11.4
|
%
|
|
|
|
|
|
Used vehicle wholesale
|
0.2
|
%
|
|
0.1
|
%
|
|
|
|
|
|
Parts and service
|
46.8
|
%
|
|
46.4
|
%
|
|
|
|
|
|
Finance and insurance
|
26.5
|
%
|
|
26.1
|
%
|
|
|
|
|
|
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 Twelve Months
Ended December 31,
|
|
Increase
(Decrease)
|
|
%
Change
|
|
2018
|
|
2017
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
New vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
$
|
1,235.3
|
|
|
$
|
1,200.2
|
|
|
$
|
35.1
|
|
|
3
|
%
|
|
Import
|
1,706.7
|
|
|
1,636.2
|
|
|
70.5
|
|
|
4
|
%
|
|
Domestic
|
740.3
|
|
|
722.2
|
|
|
18.1
|
|
|
3
|
%
|
|
Total new vehicle
|
3,682.3
|
|
|
3,558.6
|
|
|
123.7
|
|
|
3
|
%
|
|
Used Vehicle:
|
|
|
|
|
|
|
|
|
Retail
|
1,737.2
|
|
|
1,625.0
|
|
|
112.2
|
|
|
7
|
%
|
|
Wholesale
|
185.8
|
|
|
197.7
|
|
|
(11.9)
|
|
|
(6)
|
%
|
|
Total used vehicle
|
1,923.0
|
|
|
1,822.7
|
|
|
100.3
|
|
|
6
|
%
|
|
Parts and service
|
804.1
|
|
|
785.6
|
|
|
18.5
|
|
|
2
|
%
|
|
Finance and insurance, net
|
284.9
|
|
|
274.3
|
|
|
10.6
|
|
|
4
|
%
|
|
Total revenue
|
$
|
6,694.3
|
|
|
$
|
6,441.2
|
|
|
$
|
253.1
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
|
|
|
|
|
New vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
$
|
80.0
|
|
|
$
|
78.9
|
|
|
$
|
1.1
|
|
|
1
|
%
|
|
Import
|
49.7
|
|
|
56.7
|
|
|
(7.0)
|
|
|
(12)
|
%
|
|
Domestic
|
31.7
|
|
|
33.2
|
|
|
(1.5)
|
|
|
(5)
|
%
|
|
Total new vehicle
|
161.4
|
|
|
168.8
|
|
|
(7.4)
|
|
|
(4)
|
%
|
|
Used Vehicle:
|
|
|
|
|
|
|
|
|
Retail
|
124.5
|
|
|
120.4
|
|
|
4.1
|
|
|
3
|
%
|
|
Wholesale
|
2.1
|
|
|
1.2
|
|
|
0.9
|
|
|
75
|
%
|
|
Total used vehicle
|
126.6
|
|
|
121.6
|
|
|
5.0
|
|
|
4
|
%
|
|
Parts and service:
|
|
|
|
|
|
|
|
|
Customer pay
|
286.2
|
|
|
272.1
|
|
|
14.1
|
|
|
5
|
%
|
|
Warranty
|
75.5
|
|
|
81.7
|
|
|
(6.2)
|
|
|
(8)
|
%
|
|
Wholesale parts
|
22.3
|
|
|
21.1
|
|
|
1.2
|
|
|
6
|
%
|
|
Parts and service, excluding reconditioning and
preparation
|
384.0
|
|
|
374.9
|
|
|
9.1
|
|
|
2
|
%
|
|
Reconditioning and preparation
|
121.1
|
|
|
114.3
|
|
|
6.8
|
|
|
6
|
%
|
|
Total parts and service
|
505.1
|
|
|
489.2
|
|
|
15.9
|
|
|
3
|
%
|
|
Finance and insurance
|
284.9
|
|
|
274.3
|
|
|
10.6
|
|
|
4
|
%
|
|
Total gross profit
|
$
|
1,078.0
|
|
|
$
|
1,053.9
|
|
|
$
|
24.1
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
SG&A expense
|
$
|
737.7
|
|
|
$
|
726.5
|
|
|
$
|
11.2
|
|
|
2
|
%
|
|
SG&A expense as a percentage of gross profit
|
68.4
|
%
|
|
68.9
|
%
|
|
(50) 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 Twelve Months
Ended December 31,
|
|
Increase
(Decrease)
|
|
%
Change
|
|
2018
|
|
2017
|
|
|
|
Unit sales
|
|
|
|
|
|
|
|
|
New vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
22,979
|
|
|
22,525
|
|
|
454
|
|
|
2
|
%
|
|
Import
|
60,010
|
|
|
58,648
|
|
|
1,362
|
|
|
2
|
%
|
|
Domestic
|
18,676
|
|
|
18,727
|
|
|
(51)
|
|
|
—
|
%
|
|
Total new vehicle
|
101,665
|
|
|
99,900
|
|
|
1,765
|
|
|
2
|
%
|
|
Used vehicle retail
|
79,789
|
|
|
76,285
|
|
|
3,504
|
|
|
5
|
%
|
|
Used to new ratio
|
78.5
|
%
|
|
76.4
|
%
|
|
210 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling price
|
|
|
|
|
|
|
|
|
New vehicle
|
$
|
36,220
|
|
|
$
|
35,622
|
|
|
$
|
598
|
|
|
2
|
%
|
|
Used vehicle retail
|
21,772
|
|
|
21,302
|
|
|
470
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
Average gross profit per unit
|
|
|
|
|
|
|
|
|
New vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
$
|
3,481
|
|
|
$
|
3,503
|
|
|
$
|
(22)
|
|
|
(1)
|
%
|
|
Import
|
828
|
|
|
967
|
|
|
(139)
|
|
|
(14)
|
%
|
|
Domestic
|
1,697
|
|
|
1,773
|
|
|
(76)
|
|
|
(4)
|
%
|
|
Total new vehicle
|
1,588
|
|
|
1,690
|
|
|
(102)
|
|
|
(6)
|
%
|
|
Used vehicle retail
|
1,560
|
|
|
1,578
|
|
|
(18)
|
|
|
(1)
|
%
|
|
Finance and insurance, net
|
1,570
|
|
|
1,557
|
|
|
13
|
|
|
1
|
%
|
|
Front end yield (1)
|
3,146
|
|
|
3,198
|
|
|
(52)
|
|
|
(2)
|
%
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
|
|
|
|
|
|
New vehicle:
|
|
|
|
|
|
|
|
|
Luxury
|
6.5
|
%
|
|
6.6
|
%
|
|
(10) bps
|
|
|
|
|
Import
|
2.9
|
%
|
|
3.5
|
%
|
|
(60) bps
|
|
|
|
|
Domestic
|
4.3
|
%
|
|
4.6
|
%
|
|
(30) bps
|
|
|
|
|
Total new vehicle
|
4.4
|
%
|
|
4.7
|
%
|
|
(30) bps
|
|
|
|
|
Used vehicle retail
|
7.2
|
%
|
|
7.4
|
%
|
|
(20) bps
|
|
|
|
|
Parts and service:
|
|
|
|
|
|
|
|
|
Parts and service, excluding reconditioning and preparation
|
47.8
|
%
|
|
47.7
|
%
|
|
10 bps
|
|
|
|
|
Parts and service, including reconditioning and preparation
|
62.8
|
%
|
|
62.3
|
%
|
|
50 bps
|
|
|
|
|
Total gross profit margin
|
16.1
|
%
|
|
16.4
|
%
|
|
(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)
|
|
|
December 31,
2018
|
|
December 31,
2017
|
|
Increase
(Decrease)
|
|
% Change
|
|
SELECTED BALANCE SHEET DATA
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
8.3
|
|
|
$
|
4.7
|
|
|
$
|
3.6
|
|
|
77
|
%
|
|
New vehicle inventory
|
866.2
|
|
|
646.5
|
|
|
219.7
|
|
|
34
|
%
|
|
Used vehicle inventory
|
158.9
|
|
|
135.9
|
|
|
23.0
|
|
|
17
|
%
|
|
Parts inventory
|
41.5
|
|
|
43.6
|
|
|
(2.1)
|
|
|
(5)
|
%
|
|
Total current assets
|
1,552.0
|
|
|
1,302.1
|
|
|
249.9
|
|
|
19
|
%
|
|
Floor plan notes payable
|
965.1
|
|
|
732.1
|
|
|
233.0
|
|
|
32
|
%
|
|
Total current liabilities
|
1,277.1
|
|
|
1,058.2
|
|
|
218.9
|
|
|
21
|
%
|
|
|
|
|
|
|
|
|
|
CAPITALIZATION:
|
|
|
|
|
|
|
|
|
Long-term debt (including current portion)
|
$
|
905.3
|
|
|
$
|
875.5
|
|
|
$
|
29.8
|
|
|
3
|
%
|
|
Shareholders' equity
|
473.2
|
|
|
394.2
|
|
|
79.0
|
|
|
20
|
%
|
|
Total
|
$
|
1,378.5
|
|
|
$
|
1,269.7
|
|
|
$
|
108.8
|
|
|
9
|
%
|
|
|
|
December 31,
2018
|
|
December 31,
2017
|
|
DAYS SUPPLY
|
|
|
|
|
New vehicle inventory
|
67
|
|
|
53
|
|
|
Used vehicle inventory
|
34
|
|
|
31
|
|
|
|
_____________________________
|
|
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 Twelve Months
Ended December 31,
|
|
2018
|
|
2017
|
|
Luxury:
|
|
|
|
|
Mercedes-Benz
|
6
|
%
|
|
7
|
%
|
|
Lexus
|
7
|
%
|
|
7
|
%
|
|
BMW
|
5
|
%
|
|
6
|
%
|
|
Acura
|
4
|
%
|
|
4
|
%
|
|
Infiniti
|
3
|
%
|
|
3
|
%
|
|
Other luxury
|
8
|
%
|
|
7
|
%
|
|
Total luxury
|
33
|
%
|
|
34
|
%
|
|
Imports:
|
|
|
|
|
Honda
|
19
|
%
|
|
18
|
%
|
|
Nissan
|
11
|
%
|
|
12
|
%
|
|
Toyota
|
12
|
%
|
|
11
|
%
|
|
Other imports
|
5
|
%
|
|
5
|
%
|
|
Total imports
|
47
|
%
|
|
46
|
%
|
|
Domestic:
|
|
|
|
|
Ford
|
10
|
%
|
|
11
|
%
|
|
Chevrolet
|
5
|
%
|
|
4
|
%
|
|
Dodge
|
3
|
%
|
|
3
|
%
|
|
Other domestics
|
2
|
%
|
|
2
|
%
|
|
Total domestic
|
20
|
%
|
|
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
|
|
December 31,
2018
|
|
September 30,
2018
|
|
(Dollars in millions)
|
|
Adjusted leverage ratio:
|
|
|
|
|
Long-term debt (including current portion)
|
$
|
905.3
|
|
|
$
|
865.2
|
|
|
|
|
|
|
Calculation of earnings before interest, taxes, depreciation and
amortization ("EBITDA"):
|
|
|
|
|
Net Income
|
$
|
168.0
|
|
|
$
|
170.1
|
|
|
|
|
|
|
Add:
|
|
|
|
|
Depreciation and amortization
|
33.7
|
|
|
33.4
|
|
|
Income tax expense
|
56.8
|
|
|
54.9
|
|
|
Swap and other interest expense
|
53.6
|
|
|
54.1
|
|
|
Earnings before interest, taxes, depreciation and amortization
("EBITDA")
|
$
|
312.1
|
|
|
$
|
312.5
|
|
|
|
|
|
|
Non-core items - expense (income):
|
|
|
|
|
Franchise rights impairment
|
$
|
3.7
|
|
|
$
|
5.1
|
|
|
Legal settlements
|
(0.7)
|
|
|
(0.7)
|
|
|
Total non-core items
|
3.0
|
|
|
4.4
|
|
|
|
|
|
|
Adjusted EBITDA
|
$
|
315.1
|
|
|
$
|
316.9
|
|
|
|
|
|
|
Adjusted leverage ratio
|
2.9
|
|
|
2.7
|
|
|
|
|
For the Three Months
Ended December 31,
|
|
2018
|
|
2017
|
|
(In millions, except per share data)
|
|
Adjusted income from operations:
|
|
|
|
|
Income from operations
|
$
|
77.3
|
|
|
$
|
74.1
|
|
|
Franchise Right Impairment
|
3.7
|
|
|
5.1
|
|
|
Adjusted income from operations
|
$
|
81.0
|
|
|
$
|
79.2
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income:
|
|
|
|
|
Net income
|
$
|
40.4
|
|
|
$
|
42.5
|
|
|
|
|
|
|
Non-core items - (income) expense:
|
|
|
|
|
Franchise rights impairment
|
3.7
|
|
|
5.1
|
|
|
Income tax expense (benefit) on non-core items above
|
(0.9)
|
|
|
(1.9)
|
|
|
2017 Tax Act related adjustments
|
—
|
|
|
(7.9)
|
|
|
Total non-core items
|
2.8
|
|
|
(4.7)
|
|
|
Adjusted net income
|
$
|
43.2
|
|
|
$
|
37.8
|
|
|
|
|
|
|
Adjusted diluted earnings per share (EPS):
|
|
|
|
|
Diluted EPS
|
$
|
2.06
|
|
|
$
|
2.03
|
|
|
|
|
|
|
Total non-core items
|
0.14
|
|
|
(0.22)
|
|
|
Adjusted diluted EPS
|
$
|
2.20
|
|
|
$
|
1.81
|
|
|
|
|
|
|
Weighted average common shares outstanding - diluted
|
19.6
|
|
|
20.9
|
|
|
|
|
For the Twelve Months
Ended December 31,
|
|
2018
|
|
2017
|
|
(In millions, except per share data)
|
|
Adjusted income from operations:
|
|
|
|
|
Income from operations
|
$
|
310.9
|
|
|
$
|
287.7
|
|
|
Franchise Right Impairment
|
3.7
|
|
|
5.1
|
|
|
Real estate-related charges
|
—
|
|
|
2.9
|
|
|
Investment income
|
—
|
|
|
(0.8)
|
|
|
Legal settlements
|
(0.7)
|
|
|
(0.9)
|
|
|
Adjusted income from operations
|
$
|
313.9
|
|
|
$
|
294.0
|
|
|
|
|
|
|
Adjusted net income:
|
|
|
|
|
Net income
|
$
|
168.0
|
|
|
$
|
139.1
|
|
|
|
|
|
|
Non-core items - (income) expense:
|
|
|
|
|
Franchise rights impairment
|
3.7
|
|
|
5.1
|
|
|
Real estate-related charges
|
—
|
|
|
2.9
|
|
|
Investment income
|
—
|
|
|
(0.8)
|
|
|
Legal settlements
|
(0.7)
|
|
|
(0.9)
|
|
|
Income tax expense (benefit) on non-core items above
|
(0.8)
|
|
|
(2.4)
|
|
|
2017 Tax Act related adjustments
|
0.6
|
|
|
(7.9)
|
|
|
Total non-core items
|
2.8
|
|
|
(4.0)
|
|
|
Adjusted net income
|
$
|
170.8
|
|
|
$
|
135.1
|
|
|
|
|
|
|
Adjusted diluted earnings per share (EPS):
|
|
|
|
|
Diluted EPS
|
$
|
8.28
|
|
|
$
|
6.62
|
|
|
|
|
|
|
Total non-core items
|
0.13
|
|
|
(0.19)
|
|
|
Adjusted diluted EPS
|
$
|
8.41
|
|
|
$
|
6.43
|
|
|
|
|
|
|
Weighted average common shares outstanding - diluted
|
20.3
|
|
|
21.0
|
|
View original content:http://www.prnewswire.com/news-releases/asbury-automotive-group-announces-2018-fourth-quarter-and-full-year-financial-results-300790402.html
SOURCE Asbury Automotive Group, Inc.