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Tue Oct 22 2019

Asbury Automotive Group Announces 2019 Third Quarter Financial Results

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Record third quarter EPS of $2.33 per diluted share, up 7% over prior year EPS and up 5% over prior year adjusted EPS (a non-GAAP measure)

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)

%

______________________________

NMNot 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)

%

______________________________

NMNot 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


 

 

Cision 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.

Investors & Reporters May Contact: Matt Pettoni, VP of Finance & Treasurer, (770) 418-8219, ir@asburyauto.com