Mon Feb 03 2020
Asbury Automotive Group Announces 2019 Fourth Quarter And Full-Year Financial Results
It also reported adjusted net income (a non-GAAP measure) for the fourth quarter 2019 of
Net income for the fourth quarter 2019 was adjusted for a
"We delivered a very strong quarter. We grew revenue 6%, increased used unit sales 15%, delivered 8% parts and service gross profit growth, grew F&I gross profit by 8%, and grew adjusted EPS 15%," said
Fourth Quarter 2019 Operational Summary
Total company:
- Total revenue increased 6%; gross profit increased 7%
- Gross margin increased 10 basis points to 15.9%
- SG&A as a percentage of gross profit increased 10 basis points to 68.3%
- Adjusted operating margin increased 10 basis point to 4.6%
- Adjusted EPS increased 15%
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 4%
- Used vehicle retail revenue increased 10%; gross profit increased 1%
- Finance and insurance revenue and gross profit increased 4%
- Parts and service revenue increased 5%; gross profit increased 4%
Strategic Highlights:
- Signed an agreement to acquire
20 Park Place luxury franchises that we expect to close inMarch 2020 , subject to customary closing conditions. We expect these dealerships to generate approximately$1.9 billion in annualized revenue. - Acquired a Chrysler Jeep Dodge Ram store in the
Denver market in lateJanuary 2020 . We expect this store to generate approximately$124 million in annual revenues. - Signed an agreement to divest all five stores in the
Mississippi market that we expect to close inMarch 2020 , subject to customary closing conditions. These dealerships generated approximately$334 million in annualized revenue. - Signed an agreement to divest our Nissan Atlanta store that we expect to close in
February 2020 , subject to customary closing conditions. This dealership generated approximately$77 million in annualized revenue.
For the full year 2019, the Company reported net income of
Additional commentary regarding the fourth quarter results will be provided during the earnings conference call on
In addition, a live audio of the call will be accessible to the public by calling (800) 353-6461 (domestic), or (334) 323-0501 (international); passcode - 5777116. 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 - 5777116.
About
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, including its ability to complete and realize the expected benefits of the proposed acquisition of the
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
|
ASBURY AUTOMOTIVE GROUP, INC. |
||||||||||||||
|
CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share data) |
||||||||||||||
|
(Unaudited) |
||||||||||||||
|
For the Three Months |
Increase |
% |
||||||||||||
|
2019 |
2018 |
|||||||||||||
|
REVENUE: |
||||||||||||||
|
New vehicle |
$ |
1,039.4 |
$ |
1,022.4 |
$ |
17.0 |
2 |
% |
||||||
|
Used vehicle: |
||||||||||||||
|
Retail |
491.5 |
427.9 |
63.6 |
15 |
% |
|||||||||
|
Wholesale |
49.7 |
45.5 |
4.2 |
9 |
% |
|||||||||
|
Total used vehicle |
541.2 |
473.4 |
67.8 |
14 |
% |
|||||||||
|
Parts and service |
229.7 |
211.1 |
18.6 |
9 |
% |
|||||||||
|
Finance and insurance, net |
83.7 |
77.3 |
6.4 |
8 |
% |
|||||||||
|
TOTAL REVENUE |
1,894.0 |
1,784.2 |
109.8 |
6 |
% |
|||||||||
|
GROSS PROFIT: |
||||||||||||||
|
New vehicle |
44.7 |
43.9 |
0.8 |
2 |
% |
|||||||||
|
Used vehicle: |
||||||||||||||
|
Retail |
30.9 |
29.3 |
1.6 |
5 |
% |
|||||||||
|
Wholesale |
0.4 |
— |
0.4 |
— |
% |
|||||||||
|
Total used vehicle |
31.3 |
29.3 |
2.0 |
7 |
% |
|||||||||
|
Parts and service |
141.9 |
131.3 |
10.6 |
8 |
% |
|||||||||
|
Finance and insurance, net |
83.7 |
77.3 |
6.4 |
8 |
% |
|||||||||
|
TOTAL GROSS PROFIT |
301.6 |
281.8 |
19.8 |
7 |
% |
|||||||||
|
OPERATING EXPENSES: |
||||||||||||||
|
Selling, general and administrative |
206.1 |
192.2 |
13.9 |
7 |
% |
|||||||||
|
Depreciation and amortization |
9.5 |
8.5 |
1.0 |
12 |
% |
|||||||||
|
Franchise rights impairment |
7.1 |
3.7 |
3.4 |
92 |
% |
|||||||||
|
Other operating (income) expenses, net |
(0.2) |
0.1 |
(0.3) |
NM |
||||||||||
|
INCOME FROM OPERATIONS |
79.1 |
77.3 |
1.8 |
2 |
% |
|||||||||
|
OTHER EXPENSES: |
||||||||||||||
|
Floor plan interest expense |
8.2 |
9.5 |
(1.3) |
(14) |
% |
|||||||||
|
Other interest expense, net |
13.7 |
13.7 |
— |
— |
% |
|||||||||
|
Total other expenses, net |
21.9 |
23.2 |
(1.3) |
(6) |
% |
|||||||||
|
INCOME BEFORE INCOME TAXES |
57.2 |
54.1 |
3.1 |
6 |
% |
|||||||||
|
Income tax expense |
13.6 |
13.7 |
(0.1) |
(1) |
% |
|||||||||
|
NET INCOME |
$ |
43.6 |
$ |
40.4 |
$ |
3.2 |
8 |
% |
||||||
|
EARNINGS PER COMMON SHARE: |
||||||||||||||
|
Basic— |
||||||||||||||
|
Net income |
$ |
2.28 |
$ |
2.09 |
$ |
0.19 |
9 |
% |
||||||
|
Diluted— |
||||||||||||||
|
Net income |
$ |
2.26 |
$ |
2.06 |
$ |
0.20 |
10 |
% |
||||||
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: |
||||||||||||||
|
Basic |
19.1 |
19.3 |
(0.2) |
(1) |
% |
|||||||||
|
Restricted stock |
0.1 |
0.1 |
— |
— |
% |
|||||||||
|
Performance share units |
0.1 |
0.2 |
(0.1) |
(50) |
% |
|||||||||
|
Diluted |
19.3 |
19.6 |
(0.3) |
(2) |
% |
|||||||||
|
______________________________ |
|
|
NM—Not Meaningful |
|
ASBURY AUTOMOTIVE GROUP, INC. |
||||||||||||||
|
KEY OPERATING HIGHLIGHTS (In millions, except per unit data) |
||||||||||||||
|
(Unaudited) |
||||||||||||||
|
For the Three Months |
Increase |
% |
||||||||||||
|
2019 |
2018 |
|||||||||||||
|
Unit sales |
||||||||||||||
|
New vehicle: |
||||||||||||||
|
Luxury |
7,055 |
6,452 |
603 |
9 |
% |
|||||||||
|
Import |
15,723 |
16,394 |
(671) |
(4) |
% |
|||||||||
|
Domestic |
4,829 |
4,951 |
(122) |
(2) |
% |
|||||||||
|
Total new vehicle |
27,607 |
27,797 |
(190) |
(1) |
% |
|||||||||
|
Used vehicle retail |
22,272 |
19,298 |
2,974 |
15 |
% |
|||||||||
|
Used to new ratio |
80.7 |
% |
69.4 |
% |
1130 bps |
|||||||||
|
Average selling price |
||||||||||||||
|
New vehicle |
$ |
37,650 |
$ |
36,781 |
$ |
869 |
2 |
% |
||||||
|
Used vehicle retail |
22,068 |
22,173 |
(105) |
— |
% |
|||||||||
|
Average gross profit per unit |
||||||||||||||
|
New vehicle: |
||||||||||||||
|
Luxury |
$ |
3,586 |
$ |
3,487 |
$ |
99 |
3 |
% |
||||||
|
Import |
674 |
830 |
(156) |
(19) |
% |
|||||||||
|
Domestic |
1,822 |
1,575 |
247 |
16 |
% |
|||||||||
|
Total new vehicle |
1,619 |
1,579 |
40 |
3 |
% |
|||||||||
|
Used vehicle retail |
1,387 |
1,518 |
(131) |
(9) |
% |
|||||||||
|
Finance and insurance, net |
1,678 |
1,641 |
37 |
2 |
% |
|||||||||
|
Front end yield (1) |
3,194 |
3,196 |
(2) |
— |
% |
|||||||||
|
Gross margin |
||||||||||||||
|
New vehicle: |
||||||||||||||
|
Luxury |
6.5 |
% |
6.4 |
% |
10 bps |
|||||||||
|
Import |
2.3 |
% |
2.9 |
% |
(60) bps |
|||||||||
|
Domestic |
4.4 |
% |
3.9 |
% |
50 bps |
|||||||||
|
Total new vehicle |
4.3 |
% |
4.3 |
% |
0 bps |
|||||||||
|
Used vehicle retail |
6.3 |
% |
6.8 |
% |
(50) bps |
|||||||||
|
Parts and service |
61.8 |
% |
62.2 |
% |
(40) bps |
|||||||||
|
Total gross profit margin |
15.9 |
% |
15.8 |
% |
10 bps |
|||||||||
|
SG&A metrics |
||||||||||||||
|
Rent expense |
$ |
6.8 |
$ |
6.5 |
$ |
0.3 |
5 |
% |
||||||
|
Total SG&A as a percentage of gross profit |
68.3 |
% |
68.2 |
% |
10 bps |
|||||||||
|
SG&A, excluding rent expense as a percentage of gross profit |
66.1 |
% |
65.9 |
% |
20 bps |
|||||||||
|
Operating metrics |
||||||||||||||
|
Income from operations as a percentage of revenue |
4.2 |
% |
4.3 |
% |
(10) bps |
|||||||||
|
Income from operations as a percentage of gross profit |
26.2 |
% |
27.4 |
% |
(120) bps |
|||||||||
|
Adjusted income from operations as a percentage of revenue |
4.6 |
% |
4.5 |
% |
10 bps |
|||||||||
|
Adjusted income from operations as a percentage of gross profit |
28.6 |
% |
28.7 |
% |
(10) bps |
|||||||||
|
Revenue mix |
||||||||||||||
|
New vehicle |
54.9 |
% |
57.3 |
% |
||||||||||
|
Used vehicle retail |
26.0 |
% |
24.0 |
% |
||||||||||
|
Used vehicle wholesale |
2.6 |
% |
2.6 |
% |
||||||||||
|
Parts and service |
12.1 |
% |
11.8 |
% |
||||||||||
|
Finance and insurance |
4.4 |
% |
4.3 |
% |
||||||||||
|
Total revenue |
100.0 |
% |
100.0 |
% |
||||||||||
|
Gross profit mix |
||||||||||||||
|
New vehicle |
14.8 |
% |
15.6 |
% |
||||||||||
|
Used vehicle retail |
10.3 |
% |
10.4 |
% |
||||||||||
|
Used vehicle wholesale |
0.1 |
% |
— |
% |
||||||||||
|
Parts and service |
47.0 |
% |
46.6 |
% |
||||||||||
|
Finance and insurance |
27.8 |
% |
27.4 |
% |
||||||||||
|
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 |
Increase |
% |
||||||||||||
|
2019 |
2018 |
|||||||||||||
|
Revenue |
||||||||||||||
|
New vehicle: |
||||||||||||||
|
Luxury |
$ |
387.7 |
$ |
351.5 |
$ |
36.2 |
10 |
% |
||||||
|
Import |
426.9 |
460.8 |
(33.9) |
(7) |
% |
|||||||||
|
Domestic |
169.0 |
200.0 |
(31.0) |
(16) |
% |
|||||||||
|
Total new vehicle |
983.6 |
1,012.3 |
(28.7) |
(3) |
% |
|||||||||
|
Used Vehicle: |
||||||||||||||
|
Retail |
465.5 |
422.6 |
42.9 |
10 |
% |
|||||||||
|
Wholesale |
48.0 |
44.7 |
3.3 |
7 |
% |
|||||||||
|
Total used vehicle |
513.5 |
467.3 |
46.2 |
10 |
% |
|||||||||
|
Parts and service |
218.4 |
208.8 |
9.6 |
5 |
% |
|||||||||
|
Finance and insurance |
79.6 |
76.4 |
3.2 |
4 |
% |
|||||||||
|
Total revenue |
$ |
1,795.1 |
$ |
1,764.8 |
$ |
30.3 |
2 |
% |
||||||
|
Gross profit |
||||||||||||||
|
New vehicle: |
||||||||||||||
|
Luxury |
$ |
25.3 |
$ |
22.5 |
$ |
2.8 |
12 |
% |
||||||
|
Import |
9.3 |
13.3 |
(4.0) |
(30) |
% |
|||||||||
|
Domestic |
7.3 |
7.8 |
(0.5) |
(6) |
% |
|||||||||
|
Total new vehicle |
41.9 |
43.6 |
(1.7) |
(4) |
% |
|||||||||
|
Used Vehicle: |
||||||||||||||
|
Retail |
29.3 |
29.0 |
0.3 |
1 |
% |
|||||||||
|
Wholesale |
0.5 |
— |
0.5 |
— |
% |
|||||||||
|
Total used vehicle |
29.8 |
29.0 |
0.8 |
3 |
% |
|||||||||
|
Parts and service: |
||||||||||||||
|
Customer pay |
76.5 |
73.4 |
3.1 |
4 |
% |
|||||||||
|
Warranty |
21.2 |
20.1 |
1.1 |
5 |
% |
|||||||||
|
Wholesale parts |
6.0 |
5.9 |
0.1 |
2 |
% |
|||||||||
|
Parts and service, excluding reconditioning and preparation |
103.7 |
99.4 |
4.3 |
4 |
% |
|||||||||
|
Reconditioning and preparation |
31.4 |
30.4 |
1.0 |
3 |
% |
|||||||||
|
Total parts and service |
135.1 |
129.8 |
5.3 |
4 |
% |
|||||||||
|
Finance and insurance |
79.6 |
76.4 |
3.2 |
4 |
% |
|||||||||
|
Total gross profit |
$ |
286.4 |
$ |
278.8 |
$ |
7.6 |
3 |
% |
||||||
|
SG&A expense |
$ |
196.6 |
$ |
189.6 |
$ |
7.0 |
4 |
% |
||||||
|
SG&A expense as a percentage of gross profit |
68.6 |
% |
68.0 |
% |
60 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 |
Increase |
% |
||||||||||||
|
2019 |
2018 |
|||||||||||||
|
Unit sales |
||||||||||||||
|
New vehicle: |
||||||||||||||
|
Luxury |
7,028 |
6,452 |
576 |
9 |
% |
|||||||||
|
Import |
14,922 |
16,047 |
(1,125) |
(7) |
% |
|||||||||
|
Domestic |
4,109 |
4,951 |
(842) |
(17) |
% |
|||||||||
|
Total new vehicle |
26,059 |
27,450 |
(1,391) |
(5) |
% |
|||||||||
|
Used vehicle retail |
20,905 |
19,050 |
1,855 |
10 |
% |
|||||||||
|
Used to new ratio |
80.2 |
% |
69.4 |
% |
1080 |
bps |
||||||||
|
Average selling price |
||||||||||||||
|
New vehicle |
$ |
37,745 |
$ |
36,878 |
$ |
867 |
2 |
% |
||||||
|
Used vehicle retail |
22,267 |
22,184 |
83 |
— |
% |
|||||||||
|
Average gross profit per unit |
||||||||||||||
|
New vehicle: |
||||||||||||||
|
Luxury |
$ |
3,600 |
$ |
3,487 |
$ |
113 |
3 |
% |
||||||
|
Import |
623 |
829 |
(206) |
(25) |
% |
|||||||||
|
Domestic |
1,777 |
1,575 |
202 |
13 |
% |
|||||||||
|
Total new vehicle |
1,608 |
1,588 |
20 |
1 |
% |
|||||||||
|
Used vehicle retail |
1,402 |
1,522 |
(120) |
(8) |
% |
|||||||||
|
Finance and insurance, net |
1,695 |
1,643 |
52 |
3 |
% |
|||||||||
|
Front end yield (1) |
3,211 |
3,204 |
7 |
— |
% |
|||||||||
|
Gross margin |
||||||||||||||
|
New vehicle: |
||||||||||||||
|
Luxury |
6.5 |
% |
6.4 |
% |
10 |
bps |
||||||||
|
Import |
2.2 |
% |
2.9 |
% |
(70) |
bps |
||||||||
|
Domestic |
4.3 |
% |
3.9 |
% |
40 |
bps |
||||||||
|
Total new vehicle |
4.3 |
% |
4.3 |
% |
0 |
bps |
||||||||
|
Used vehicle retail |
6.3 |
% |
6.9 |
% |
(60) |
bps |
||||||||
|
Parts and service: |
||||||||||||||
|
Parts and service, excluding reconditioning and preparation |
47.5 |
% |
47.6 |
% |
(10) |
bps |
||||||||
|
Parts and service, including reconditioning and preparation |
61.9 |
% |
62.2 |
% |
(30) |
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 Twelve Months |
Increase |
% |
||||||||||||
|
2019 |
2018 |
|||||||||||||
|
REVENUE: |
||||||||||||||
|
New vehicle |
$ |
3,863.3 |
$ |
3,788.7 |
$ |
74.6 |
2 |
% |
||||||
|
Used vehicle: |
||||||||||||||
|
Retail |
1,941.3 |
1,783.3 |
158.0 |
9 |
% |
|||||||||
|
Wholesale |
190.3 |
189.1 |
1.2 |
1 |
% |
|||||||||
|
Total used vehicle |
2,131.6 |
1,972.4 |
159.2 |
8 |
% |
|||||||||
|
Parts and service |
899.4 |
821.0 |
78.4 |
10 |
% |
|||||||||
|
Finance and insurance, net |
316.0 |
292.3 |
23.7 |
8 |
% |
|||||||||
|
TOTAL REVENUE |
7,210.3 |
6,874.4 |
335.9 |
5 |
% |
|||||||||
|
GROSS PROFIT: |
||||||||||||||
|
New vehicle |
159.5 |
165.2 |
(5.7) |
(3) |
% |
|||||||||
|
Used vehicle: |
||||||||||||||
|
Retail |
133.1 |
127.8 |
5.3 |
4 |
% |
|||||||||
|
Wholesale |
1.0 |
1.9 |
(0.9) |
(47) |
% |
|||||||||
|
Total used vehicle |
134.1 |
129.7 |
4.4 |
3 |
% |
|||||||||
|
Parts and service |
559.3 |
515.8 |
43.5 |
8 |
% |
|||||||||
|
Finance and insurance, net |
316.0 |
292.3 |
23.7 |
8 |
% |
|||||||||
|
TOTAL GROSS PROFIT |
1,168.9 |
1,103.0 |
65.9 |
6 |
% |
|||||||||
|
OPERATING EXPENSES: |
||||||||||||||
|
Selling, general and administrative |
799.8 |
755.8 |
44.0 |
6 |
% |
|||||||||
|
Depreciation and amortization |
36.2 |
33.7 |
2.5 |
7 |
% |
|||||||||
|
Franchise rights impairment |
7.1 |
3.7 |
3.4 |
92 |
% |
|||||||||
|
Other operating expense (income), net |
0.8 |
(1.1) |
1.9 |
173 |
% |
|||||||||
|
INCOME FROM OPERATIONS |
325.0 |
310.9 |
14.1 |
5 |
% |
|||||||||
|
OTHER EXPENSES (INCOME): |
||||||||||||||
|
Floor plan interest expense |
37.9 |
32.5 |
5.4 |
17 |
% |
|||||||||
|
Other interest expense, net |
54.9 |
53.1 |
1.8 |
3 |
% |
|||||||||
|
Swap interest expense |
— |
0.5 |
(0.5) |
(100) |
% |
|||||||||
|
Gain on divestiture |
(11.7) |
— |
(11.7) |
— |
% |
|||||||||
|
Total other expenses, net |
81.1 |
86.1 |
(5.0) |
(6) |
% |
|||||||||
|
INCOME BEFORE INCOME TAXES |
243.9 |
224.8 |
19.1 |
8 |
% |
|||||||||
|
Income tax expense |
59.5 |
56.8 |
2.7 |
5 |
% |
|||||||||
|
NET INCOME |
$ |
184.4 |
$ |
168.0 |
$ |
16.4 |
10 |
% |
||||||
|
EARNINGS PER COMMON SHARE: |
||||||||||||||
|
Basic— |
||||||||||||||
|
Net income |
$ |
9.65 |
$ |
8.36 |
$ |
1.29 |
15 |
% |
||||||
|
Diluted— |
||||||||||||||
|
Net income |
$ |
9.55 |
$ |
8.28 |
$ |
1.27 |
15 |
% |
||||||
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: |
||||||||||||||
|
Basic |
19.1 |
20.1 |
(1.0) |
(5) |
% |
|||||||||
|
Restricted stock |
0.1 |
0.1 |
— |
— |
% |
|||||||||
|
Performance share units |
0.1 |
0.1 |
— |
— |
% |
|||||||||
|
Diluted |
19.3 |
20.3 |
(1.0) |
(5) |
% |
|||||||||
|
ASBURY AUTOMOTIVE GROUP, INC. |
||||||||||||||
|
KEY OPERATING HIGHLIGHTS (In millions, except per unit data) |
||||||||||||||
|
(Unaudited) |
||||||||||||||
|
For the Twelve Months |
Increase |
% |
||||||||||||
|
2019 |
2018 |
|||||||||||||
|
Unit sales |
||||||||||||||
|
New vehicle: |
||||||||||||||
|
Luxury |
23,988 |
22,979 |
1,009 |
4 |
% |
|||||||||
|
Import |
61,420 |
62,939 |
(1,519) |
(2) |
% |
|||||||||
|
Domestic |
19,835 |
19,357 |
478 |
2 |
% |
|||||||||
|
Total new vehicle |
105,243 |
105,275 |
(32) |
— |
% |
|||||||||
|
Used vehicle retail |
88,602 |
82,377 |
6,225 |
8 |
% |
|||||||||
|
Used to new ratio |
84.2 |
% |
78.2 |
% |
600 |
bps |
||||||||
|
Average selling price |
||||||||||||||
|
New vehicle |
$ |
36,708 |
$ |
35,989 |
$ |
719 |
2 |
% |
||||||
|
Used vehicle retail |
21,910 |
21,648 |
262 |
1 |
% |
|||||||||
|
Average gross profit per unit |
||||||||||||||
|
New vehicle: |
||||||||||||||
|
Luxury |
$ |
3,473 |
$ |
3,481 |
$ |
(8) |
— |
% |
||||||
|
Import |
685 |
836 |
(151) |
(18) |
% |
|||||||||
|
Domestic |
1,719 |
1,684 |
35 |
2 |
% |
|||||||||
|
Total new vehicle |
1,516 |
1,569 |
(53) |
(3) |
% |
|||||||||
|
Used vehicle retail |
1,502 |
1,551 |
(49) |
(3) |
% |
|||||||||
|
Finance and insurance, net |
1,630 |
1,558 |
72 |
5 |
% |
|||||||||
|
Front end yield (1) |
3,140 |
3,119 |
21 |
1 |
% |
|||||||||
|
Gross margin |
||||||||||||||
|
New vehicle: |
||||||||||||||
|
Luxury |
6.3 |
% |
6.5 |
% |
(20) |
bps |
||||||||
|
Import |
2.4 |
% |
2.9 |
% |
(50) |
bps |
||||||||
|
Domestic |
4.3 |
% |
4.3 |
% |
0 |
bps |
||||||||
|
Total new vehicle |
4.1 |
% |
4.4 |
% |
(30) |
bps |
||||||||
|
Used vehicle retail |
6.9 |
% |
7.2 |
% |
(30) |
bps |
||||||||
|
Parts and service |
62.2 |
% |
62.8 |
% |
(60) |
bps |
||||||||
|
Total gross profit margin |
16.2 |
% |
16.0 |
% |
20 |
bps |
||||||||
|
SG&A metrics |
||||||||||||||
|
Rent expense |
$ |
27.1 |
$ |
25.6 |
$ |
1.5 |
6 |
% |
||||||
|
Total SG&A as a percentage of gross profit |
68.4 |
% |
68.5 |
% |
(10) |
bps |
||||||||
|
SG&A, excluding rent expense as a percentage of gross profit |
66.1 |
% |
66.2 |
% |
(10) |
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 |
27.8 |
% |
28.2 |
% |
(40) |
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 |
28.6 |
% |
28.5 |
% |
10 |
bps |
||||||||
|
Revenue mix |
||||||||||||||
|
New vehicle |
53.6 |
% |
55.1 |
% |
||||||||||
|
Used vehicle retail |
26.9 |
% |
25.9 |
% |
||||||||||
|
Used vehicle wholesale |
2.6 |
% |
2.8 |
% |
||||||||||
|
Parts and service |
12.5 |
% |
11.9 |
% |
||||||||||
|
Finance and insurance |
4.4 |
% |
4.3 |
% |
||||||||||
|
Total revenue |
100.0 |
% |
100.0 |
% |
||||||||||
|
Gross profit mix |
||||||||||||||
|
New vehicle |
13.6 |
% |
15.0 |
% |
||||||||||
|
Used vehicle retail |
11.5 |
% |
11.5 |
% |
||||||||||
|
Used vehicle wholesale |
0.1 |
% |
0.2 |
% |
||||||||||
|
Parts and service |
47.8 |
% |
46.8 |
% |
||||||||||
|
Finance and insurance |
27.0 |
% |
26.5 |
% |
||||||||||
|
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 |
Increase |
% |
||||||||||||
|
2019 |
2018 |
|||||||||||||
|
Revenue |
||||||||||||||
|
New vehicle: |
||||||||||||||
|
Luxury |
$ |
1,314.4 |
$ |
1,235.3 |
$ |
79.1 |
6 |
% |
||||||
|
Import |
1,687.1 |
1,744.8 |
(57.7) |
(3) |
% |
|||||||||
|
Domestic |
681.0 |
763.2 |
(82.2) |
(11) |
% |
|||||||||
|
Total new vehicle |
3,682.5 |
3,743.3 |
(60.8) |
(2) |
% |
|||||||||
|
Used Vehicle: |
||||||||||||||
|
Retail |
1,848.9 |
1,755.7 |
93.2 |
5 |
% |
|||||||||
|
Wholesale |
183.9 |
185.4 |
(1.5) |
(1) |
% |
|||||||||
|
Total used vehicle |
2,032.8 |
1,941.1 |
91.7 |
5 |
% |
|||||||||
|
Parts and service |
867.0 |
810.9 |
56.1 |
7 |
% |
|||||||||
|
Finance and insurance, net |
302.4 |
287.1 |
15.3 |
5 |
% |
|||||||||
|
Total revenue |
$ |
6,884.7 |
$ |
6,782.4 |
$ |
102.3 |
2 |
% |
||||||
|
Gross profit |
||||||||||||||
|
New vehicle: |
||||||||||||||
|
Luxury |
$ |
83.4 |
$ |
80.0 |
$ |
3.4 |
4 |
% |
||||||
|
Import |
39.9 |
51.0 |
(11.1) |
(22) |
% |
|||||||||
|
Domestic |
27.9 |
32.6 |
(4.7) |
(14) |
% |
|||||||||
|
Total new vehicle |
151.2 |
163.6 |
(12.4) |
(8) |
% |
|||||||||
|
Used Vehicle: |
||||||||||||||
|
Retail |
126.0 |
126.1 |
(0.1) |
— |
% |
|||||||||
|
Wholesale |
1.1 |
2.0 |
(0.9) |
(45) |
% |
|||||||||
|
Total used vehicle |
127.1 |
128.1 |
(1.0) |
(1) |
% |
|||||||||
|
Parts and service: |
||||||||||||||
|
Customer pay |
305.4 |
288.6 |
16.8 |
6 |
% |
|||||||||
|
Warranty |
85.4 |
76.1 |
9.3 |
12 |
% |
|||||||||
|
Wholesale parts |
23.4 |
22.5 |
0.9 |
4 |
% |
|||||||||
|
Parts and service, excluding reconditioning and preparation |
414.2 |
387.2 |
27.0 |
7 |
% |
|||||||||
|
Reconditioning and preparation |
124.5 |
122.0 |
2.5 |
2 |
% |
|||||||||
|
Total parts and service |
538.7 |
509.2 |
29.5 |
6 |
% |
|||||||||
|
Finance and insurance |
302.4 |
287.1 |
15.3 |
5 |
% |
|||||||||
|
Total gross profit |
$ |
1,119.4 |
$ |
1,088.0 |
$ |
31.4 |
3 |
% |
||||||
|
SG&A expense |
$ |
766.0 |
$ |
743.9 |
$ |
22.1 |
3 |
% |
||||||
|
SG&A expense as a percentage of gross profit |
68.4 |
% |
68.4 |
% |
0 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 |
Increase |
% |
||||||||||||
|
2019 |
2018 |
|||||||||||||
|
Unit sales |
||||||||||||||
|
New vehicle: |
||||||||||||||
|
Luxury |
23,890 |
22,979 |
911 |
4 |
% |
|||||||||
|
Import |
59,539 |
61,305 |
(1,766) |
(3) |
% |
|||||||||
|
Domestic |
16,817 |
19,357 |
(2,540) |
(13) |
% |
|||||||||
|
Total new vehicle |
100,246 |
103,641 |
(3,395) |
(3) |
% |
|||||||||
|
Used vehicle retail |
83,822 |
80,963 |
2,859 |
4 |
% |
|||||||||
|
Used to new ratio |
83.6 |
% |
78.1 |
% |
550 |
bps |
||||||||
|
Average selling price |
||||||||||||||
|
New vehicle |
$ |
36,735 |
$ |
36,118 |
$ |
617 |
2 |
% |
||||||
|
Used vehicle retail |
22,057 |
21,685 |
372 |
2 |
% |
|||||||||
|
Average gross profit per unit |
||||||||||||||
|
New vehicle: |
||||||||||||||
|
Luxury |
$ |
3,491 |
$ |
3,481 |
$ |
10 |
— |
% |
||||||
|
Import |
670 |
832 |
(162) |
(19) |
% |
|||||||||
|
Domestic |
1,659 |
1,684 |
(25) |
(1) |
% |
|||||||||
|
Total new vehicle |
1,508 |
1,579 |
(71) |
(4) |
% |
|||||||||
|
Used vehicle retail |
1,503 |
1,558 |
(55) |
(4) |
% |
|||||||||
|
Finance and insurance, net |
1,643 |
1,555 |
88 |
6 |
% |
|||||||||
|
Front end yield (1) |
3,149 |
3,125 |
24 |
1 |
% |
|||||||||
|
Gross margin |
||||||||||||||
|
New vehicle: |
||||||||||||||
|
Luxury |
6.3 |
% |
6.5 |
% |
(20) |
bps |
||||||||
|
Import |
2.4 |
% |
2.9 |
% |
(50) |
bps |
||||||||
|
Domestic |
4.1 |
% |
4.3 |
% |
(20) |
bps |
||||||||
|
Total new vehicle |
4.1 |
% |
4.4 |
% |
(30) |
bps |
||||||||
|
Used vehicle retail |
6.8 |
% |
7.2 |
% |
(40) |
bps |
||||||||
|
Parts and service: |
||||||||||||||
|
Parts and service, excluding reconditioning and preparation |
47.8 |
% |
47.7 |
% |
10 |
bps |
||||||||