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Mon Feb 03 2020

Asbury Automotive Group Announces 2019 Fourth Quarter And Full-Year Financial Results

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Record fourth quarter EPS of $2.26 per diluted share, up 10% over prior year EPS
Record fourth quarter adjusted EPS of $2.53 per diluted share (a non-GAAP measure), up 15% over prior year adjusted EPS
Record full-year EPS of $9.55 per diluted share, up 15% over prior year EPS
Record full-year adjusted EPS of $9.46 per diluted share (a non-GAAP measure), up 12% over prior year adjusted EPS

DULUTH, Ga., Feb. 3, 2020 /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 2019 of $43.6 million ($2.26 per diluted share).  This compares to net income of $40.4 million ($2.06 per diluted share) in the prior year quarter.

It also reported adjusted net income (a non-GAAP measure) for the fourth quarter 2019 of $48.9 million ($2.53 per diluted share) compared to $43.2 million ($2.20 per diluted share) in the prior year quarter, a 15% increase in adjusted earnings per share.

Net income for the fourth quarter 2019 was adjusted for a $7.1 million pre-tax charge for franchise rights impairments ($0.27 per diluted share), a $0.6 million pre-tax charge for real estate related charges ($0.03 per diluted share), and a $0.6 million pre-tax gain from a legal settlement ($0.03 per diluted 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).

"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 David Hult, Asbury's President and Chief Executive Officer. "During the quarter, we signed an agreement to acquire 20 Park Place luxury franchises in the Dallas Fort Worth Market. This acquisition will transform our total portfolio to 50% luxury stores and add approximately $1.9 billion in expected annualized revenues. We believe these acquisitions coupled with our announced divestitures, will strategically make Asbury a stronger company."

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 in March 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 late January 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 in March 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 $184.4 million ($9.55 per diluted share) compared to $168.0 million ($8.28 per diluted share) in the prior year period. Adjusted net income (a non-GAAP measure) for 2019 was $182.5 million ($9.46 per diluted share) compared to $170.8 million ($8.41 per diluted share) in the prior year period, a 12% increase in adjusted EPS.

Additional commentary regarding the fourth quarter results will be provided during the earnings conference call on February 3, 2020 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 (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 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 89 dealerships, consisting of 110 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, including its ability to complete and realize the expected benefits of the proposed acquisition of the Park Place family of dealerships.  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


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)

%

______________________________

NMNot Meaningful

 

ASBURY AUTOMOTIVE GROUP, INC.

KEY OPERATING HIGHLIGHTS (In millions, except per unit data)

(Unaudited)



For the Three Months
Ended December 31,


Increase
(Decrease)


%
Change


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
Ended December 31,


Increase
(Decrease)


%
Change


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
Ended December 31,


Increase
(Decrease)


%
Change


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
Ended December 31,


Increase
(Decrease)


%
Change


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
Ended December 31,


Increase
(Decrease)


%
Change


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
Ended December 31,


Increase
(Decrease)


%
Change


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
Ended December 31,


Increase
(Decrease)


%
Change


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



Parts and service, including reconditioning and preparation