Tue Jul 28 2020
Asbury Automotive Group Announces Record Second Quarter 2020 Financial Results
Net income for the second quarter 2020 was adjusted for a
"We delivered a very strong quarter and proved out the resilience and the flexibility of our business model by delivering a record operating margin of 5.7% and a record low SG&A as a percentage of gross profit of 62.7% in an 11.3 million SAAR environment," said
"Finally, I want to thank our teammates across our store network for their unwavering commitment and emphasis on safety during this pandemic; our performance is a direct result of their hard work and service," Hult concluded.
Second Quarter 2020 Highlights
- New gross profit per vehicle up 33% to
$1,924 - Used retail gross profit per vehicle up 10% to
$1,717 - 20% of used sales transacted online
- SG&A as a percentage of gross profit decreased 530 basis points to 62.7%
- Income from operations as percentage of revenue increased 90 basis points to 5.7%
- Adjusted EPS increased 6%
- Entered into a definitive agreement to acquire
Park Place Dealerships , one of the country's largest and most prominent luxury dealer groups - Ended the quarter with total liquidity of
$747 million and a net leverage ratio of 1.5x
Additional commentary regarding the second 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 (866) 248-8441 (domestic), or (323) 347-3612 (international); passcode – 8703938. 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 – 8703938.
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, the impact of the COVID-19 pandemic, 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 technology 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 dealership group. 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
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|||||||||||||||
|
CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share data) |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
|
For the Three Months |
Increase |
% |
|||||||||||||
|
2020 |
2019 |
||||||||||||||
|
REVENUE: |
|||||||||||||||
|
New vehicle |
$ |
761.8 |
$ |
965.2 |
$ |
(203.4) |
(21) |
% |
|||||||
|
Used vehicle: |
|||||||||||||||
|
Retail |
412.6 |
486.6 |
(74.0) |
(15) |
% |
||||||||||
|
Wholesale |
34.9 |
47.0 |
(12.1) |
(26) |
% |
||||||||||
|
Total used vehicle |
447.5 |
533.6 |
(86.1) |
(16) |
% |
||||||||||
|
Parts and service |
169.2 |
224.5 |
(55.3) |
(25) |
% |
||||||||||
|
Finance and insurance, net |
66.6 |
80.2 |
(13.6) |
(17) |
% |
||||||||||
|
TOTAL REVENUE |
1,445.1 |
1,803.5 |
(358.4) |
(20) |
% |
||||||||||
|
GROSS PROFIT: |
|||||||||||||||
|
New vehicle |
38.6 |
38.3 |
0.3 |
1 |
% |
||||||||||
|
Used vehicle: |
|||||||||||||||
|
Retail |
31.6 |
34.7 |
(3.1) |
(9) |
% |
||||||||||
|
Wholesale |
5.5 |
1.2 |
4.3 |
NM |
|||||||||||
|
Total used vehicle |
37.1 |
35.9 |
1.2 |
3 |
% |
||||||||||
|
Parts and service |
100.5 |
140.6 |
(40.1) |
(29) |
% |
||||||||||
|
Finance and insurance, net |
66.6 |
80.2 |
(13.6) |
(17) |
% |
||||||||||
|
TOTAL GROSS PROFIT |
242.8 |
295.0 |
(52.2) |
(18) |
% |
||||||||||
|
OPERATING EXPENSES: |
|||||||||||||||
|
Selling, general and administrative |
152.2 |
200.7 |
(48.5) |
(24) |
% |
||||||||||
|
Depreciation and amortization |
9.7 |
9.0 |
0.7 |
8 |
% |
||||||||||
|
Other operating income, net |
(1.3) |
(0.6) |
(0.7) |
(117) |
% |
||||||||||
|
INCOME FROM OPERATIONS |
82.2 |
85.9 |
(3.7) |
(4) |
% |
||||||||||
|
OTHER EXPENSES: |
|||||||||||||||
|
Floor plan interest expense |
4.1 |
10.5 |
(6.4) |
(61) |
% |
||||||||||
|
Other interest expense, net |
11.8 |
13.6 |
(1.8) |
(13) |
% |
||||||||||
|
Gain on divestiture |
— |
(11.7) |
11.7 |
100 |
% |
||||||||||
|
Total other expenses, net |
15.9 |
12.4 |
3.5 |
28 |
% |
||||||||||
|
INCOME BEFORE INCOME TAXES |
66.3 |
73.5 |
(7.2) |
(10) |
% |
||||||||||
|
Income tax expense |
16.7 |
18.6 |
(1.9) |
(10) |
% |
||||||||||
|
NET INCOME |
$ |
49.6 |
$ |
54.9 |
$ |
(5.3) |
(10) |
% |
|||||||
|
EARNINGS PER COMMON SHARE: |
|||||||||||||||
|
Basic— |
|||||||||||||||
|
Net income |
$ |
2.58 |
$ |
2.87 |
$ |
(0.29) |
(10) |
% |
|||||||
|
Diluted— |
|||||||||||||||
|
Net income |
$ |
2.57 |
$ |
2.84 |
$ |
(0.27) |
(10) |
% |
|||||||
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WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: |
|||||||||||||||
|
Basic |
19.2 |
19.1 |
0.1 |
1 |
% |
||||||||||
|
Restricted stock |
— |
0.1 |
(0.1) |
(100) |
% |
||||||||||
|
Performance share units |
0.1 |
0.1 |
— |
— |
% |
||||||||||
|
Diluted |
19.3 |
19.3 |
— |
— |
% |
||||||||||
|
______________________________ |
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|
NM—Not Meaningful |
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KEY OPERATING HIGHLIGHTS (In millions, except per unit data) |
||||||||||||||
|
(Unaudited) |
||||||||||||||
|
For the Three Months |
Increase |
% |
||||||||||||
|
2020 |
2019 |
|||||||||||||
|
Unit sales |
||||||||||||||
|
New vehicle: |
||||||||||||||
|
Luxury |
4,359 |
5,746 |
(1,387) |
(24) |
% |
|||||||||
|
Import |
11,610 |
15,256 |
(3,646) |
(24) |
% |
|||||||||
|
Domestic |
4,091 |
5,447 |
(1,356) |
(25) |
% |
|||||||||
|
Total new vehicle |
20,060 |
26,449 |
(6,389) |
(24) |
% |
|||||||||
|
Used vehicle retail |
18,400 |
22,259 |
(3,859) |
(17) |
% |
|||||||||
|
Used to new ratio |
91.7 |
% |
84.2 |
% |
750 bps |
|||||||||
|
Average selling price |
||||||||||||||
|
New vehicle |
$ |
37,976 |
$ |
36,493 |
$ |
1,483 |
4 |
% |
||||||
|
Used vehicle retail |
22,424 |
21,861 |
563 |
3 |
% |
|||||||||
|
Average gross profit per unit |
||||||||||||||
|
New vehicle: |
||||||||||||||
|
Luxury |
$ |
3,854 |
$ |
3,341 |
$ |
513 |
15 |
% |
||||||
|
Import |
1,077 |
623 |
454 |
73 |
% |
|||||||||
|
Domestic |
2,273 |
1,762 |
511 |
29 |
% |
|||||||||
|
Total new vehicle |
1,924 |
1,448 |
476 |
33 |
% |
|||||||||
|
Used vehicle retail |
1,717 |
1,559 |
158 |
10 |
% |
|||||||||
|
Finance and insurance, net |
1,732 |
1,647 |
85 |
5 |
% |
|||||||||
|
Front end yield (1) |
3,557 |
3,145 |
412 |
13 |
% |
|||||||||
|
Gross margin |
||||||||||||||
|
New vehicle: |
||||||||||||||
|
Luxury |
6.9 |
% |
6.1 |
% |
80 bps |
|||||||||
|
Import |
3.7 |
% |
2.2 |
% |
150 bps |
|||||||||
|
Domestic |
5.3 |
% |
4.4 |
% |
90 bps |
|||||||||
|
Total new vehicle |
5.1 |
% |
4.0 |
% |
110 bps |
|||||||||
|
Used vehicle retail |
7.7 |
% |
7.1 |
% |
60 bps |
|||||||||
|
Parts and service |
59.4 |
% |
62.6 |
% |
(320) bps |
|||||||||
|
Total gross profit margin |
16.8 |
% |
16.4 |
% |
40 bps |
|||||||||
|
SG&A metrics |
||||||||||||||
|
Rent expense |
$ |
5.9 |
$ |
6.8 |
$ |
(0.9) |
(13) |
% |
||||||
|
Total SG&A as a percentage of gross profit |
62.7 |
% |
68.0 |
% |
(530) bps |
|||||||||
|
SG&A, excluding rent expense as a percentage of gross profit |
60.3 |
% |
65.7 |
% |
(540) bps |
|||||||||
|
Operating metrics |
||||||||||||||
|
Income from operations as a percentage of revenue |
5.7 |
% |
4.8 |
% |
90 bps |
|||||||||
|
Income from operations as a percentage of gross profit |
33.9 |
% |
29.1 |
% |
480 bps |
|||||||||
|
Adjusted income from operations as a percentage of revenue |
5.6 |
% |
4.7 |
% |
90 bps |
|||||||||
|
Adjusted income from operations as a percentage of gross profit |
33.4 |
% |
29.0 |
% |
440 bps |
|||||||||
|
Revenue mix |
||||||||||||||
|
New vehicle |
52.7 |
% |
53.5 |
% |
||||||||||
|
Used vehicle retail |
28.6 |
% |
27.1 |
% |
||||||||||
|
Used vehicle wholesale |
2.4 |
% |
2.6 |
% |
||||||||||
|
Parts and service |
11.7 |
% |
12.4 |
% |
||||||||||
|
Finance and insurance |
4.6 |
% |
4.4 |
% |
||||||||||
|
Total revenue |
100.0 |
% |
100.0 |
% |
||||||||||
|
Gross profit mix |
||||||||||||||
|
New vehicle |
15.9 |
% |
13.0 |
% |
||||||||||
|
Used vehicle retail |
13.0 |
% |
11.7 |
% |
||||||||||
|
Used vehicle wholesale |
2.3 |
% |
0.4 |
% |
||||||||||
|
Parts and service |
41.4 |
% |
47.7 |
% |
||||||||||
|
Finance and insurance |
27.4 |
% |
27.2 |
% |
||||||||||
|
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), |
|
|
||||||||||||||
|
SAME STORE OPERATING HIGHLIGHTS (In millions) |
||||||||||||||
|
(Unaudited) |
||||||||||||||
|
For the Three Months |
Increase |
% |
||||||||||||
|
2020 |
2019 |
|||||||||||||
|
Revenue |
||||||||||||||
|
New vehicle: |
||||||||||||||
|
Luxury |
$ |
243.5 |
$ |
315.5 |
$ |
(72.0) |
(23) |
% |
||||||
|
Import |
319.7 |
392.8 |
(73.1) |
(19) |
% |
|||||||||
|
Domestic |
158.3 |
200.7 |
(42.4) |
(21) |
% |
|||||||||
|
Total new vehicle |
721.5 |
909.0 |
(187.5) |
(21) |
% |
|||||||||
|
Used Vehicle: |
||||||||||||||
|
Retail |
399.8 |
454.8 |
(55.0) |
(12) |
% |
|||||||||
|
Wholesale |
34.0 |
45.1 |
(11.1) |
(25) |
% |
|||||||||
|
Total used vehicle |
433.8 |
499.9 |
(66.1) |
(13) |
% |
|||||||||
|
Parts and service |
162.4 |
213.1 |
(50.7) |
(24) |
% |
|||||||||
|
Finance and insurance |
63.8 |
75.3 |
(11.5) |
(15) |
% |
|||||||||
|
Total revenue |
$ |
1,381.5 |
$ |
1,697.3 |
$ |
(315.8) |
(19) |
% |
||||||
|
Gross profit |
||||||||||||||
|
New vehicle: |
||||||||||||||
|
Luxury |
$ |
16.8 |
$ |
19.2 |
$ |
(2.4) |
(13) |
% |
||||||
|
Import |
11.3 |
8.7 |
2.6 |
30 |
% |
|||||||||
|
Domestic |
8.1 |
8.5 |
(0.4) |
(5) |
% |
|||||||||
|
Total new vehicle |
36.2 |
36.4 |
(0.2) |
(1) |
% |
|||||||||
|
Used Vehicle: |
||||||||||||||
|
Retail |
30.0 |
32.9 |
(2.9) |
(9) |
% |
|||||||||
|
Wholesale |
5.5 |
1.3 |
4.2 |
NM |
||||||||||
|
Total used vehicle |
35.5 |
34.2 |
1.3 |
4 |
% |
|||||||||
|
Parts and service: |
||||||||||||||
|
Customer pay |
52.1 |
76.4 |
(24.3) |
(32) |
% |
|||||||||
|
Warranty |
16.5 |
21.5 |
(5.0) |
(23) |
% |
|||||||||
|
Wholesale parts |
4.7 |
5.3 |
(0.6) |
(11) |
% |
|||||||||
|
Parts and service, excluding reconditioning and preparation |
73.3 |
103.2 |
(29.9) |
(29) |
% |
|||||||||
|
Reconditioning and preparation |
23.3 |
30.3 |
(7.0) |
(23) |
% |
|||||||||
|
Total parts and service |
96.6 |
133.5 |
(36.9) |
(28) |
% |
|||||||||
|
Finance and insurance |
63.8 |
75.3 |
(11.5) |
(15) |
% |
|||||||||
|
Total gross profit |
$ |
232.1 |
$ |
279.4 |
$ |
(47.3) |
(17) |
% |
||||||
|
SG&A expense |
$ |
146.8 |
$ |
190.0 |
$ |
(43.2) |
(23) |
% |
||||||
|
SG&A expense as a percentage of gross profit |
63.2 |
% |
68.0 |
% |
(480) 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. |
||||||||||||||
|
|
||||||||||||||
|
SAME STORE OPERATING HIGHLIGHTS (Continued) |
||||||||||||||
|
(Unaudited) |
||||||||||||||
|
For the Three Months |
Increase |
% |
||||||||||||
|
2020 |
2019 |
|||||||||||||
|
Unit sales |
||||||||||||||
|
New vehicle: |
||||||||||||||
|
Luxury |
4,359 |
5,731 |
(1,372) |
(24) |
% |
|||||||||
|
Import |
10,915 |
14,011 |
(3,096) |
(22) |
% |
|||||||||
|
Domestic |
3,710 |
5,007 |
(1,297) |
(26) |
% |
|||||||||
|
Total new vehicle |
18,984 |
24,749 |
(5,765) |
(23) |
% |
|||||||||
|
Used vehicle retail |
17,753 |
20,696 |
(2,943) |
(14) |
% |
|||||||||
|
Used to new ratio |
93.5 |
% |
83.6 |
% |
990 |
bps |
||||||||
|
Average selling price |
||||||||||||||
|
New vehicle |
$ |
38,006 |
$ |
36,729 |
$ |
1,277 |
3 |
% |
||||||
|
Used vehicle retail |
22,520 |
21,975 |
545 |
2 |
% |
|||||||||
|
Average gross profit per unit |
||||||||||||||
|
New vehicle: |
||||||||||||||
|
Luxury |
$ |
3,854 |
$ |
3,350 |
$ |
504 |
15 |
% |
||||||
|
Import |
1,035 |
621 |
414 |
67 |
% |
|||||||||
|
Domestic |
2,183 |
1,698 |
485 |
29 |
% |
|||||||||
|
Total new vehicle |
1,907 |
1,471 |
436 |
30 |
% |
|||||||||
|
Used vehicle retail |
1,690 |
1,590 |
100 |
6 |
% |
|||||||||
|
Finance and insurance, net |
1,737 |
1,657 |
80 |
5 |
% |
|||||||||
|
Front end yield (1) |
3,539 |
3,182 |
357 |
11 |
% |
|||||||||
|
Gross margin |
||||||||||||||
|
New vehicle: |
||||||||||||||
|
Luxury |
6.9 |
% |
6.1 |
% |
80 |
bps |
||||||||
|
Import |
3.5 |
% |
2.2 |
% |
130 |
bps |
||||||||
|
Domestic |
5.1 |
% |
4.2 |
% |
90 |
bps |
||||||||
|
Total new vehicle |
5.0 |
% |
4.0 |
% |
100 |
bps |
||||||||
|
Used vehicle retail |
7.5 |
% |
7.2 |
% |
30 |
bps |
||||||||
|
Parts and service: |
||||||||||||||
|
Parts and service, excluding reconditioning and preparation |
45.1 |
% |
48.4 |
% |
(330) |
bps |
||||||||
|
Parts and service, including reconditioning and preparation |
59.5 |
% |
62.6 |
% |
(310) |
bps |
||||||||
|
Total gross profit margin |
16.8 |
% |
16.5 |
% |
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), |
|
|
||||||||||||||
|
CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share data) |
||||||||||||||
|
(Unaudited) |
||||||||||||||
|
For the Six Months |
Increase |
% |
||||||||||||
|
2020 |
2019 |
|||||||||||||
|
REVENUE: |
||||||||||||||
|
New vehicle |
$ |
1,583.9 |
$ |
1,837.0 |
$ |
(253.1) |
(14) |
% |
||||||
|
Used vehicle: |
||||||||||||||
|
Retail |
858.6 |
944.8 |
(86.2) |
(9) |
% |
|||||||||
|
Wholesale |
82.1 |
98.7 |
(16.6) |
(17) |
% |
|||||||||
|
Total used vehicle |
940.7 |
1,043.5 |
(102.8) |
(10) |
% |
|||||||||
|
Parts and service |
390.8 |
442.1 |
(51.3) |
(12) |
% |
|||||||||
|
Finance and insurance, net |
137.0 |
151.7 |
(14.7) |
(10) |
% |
|||||||||
|
TOTAL REVENUE |
3,052.4 |
3,474.3 |
(421.9) |
(12) |
% |
|||||||||
|
GROSS PROFIT: |
||||||||||||||
|
New vehicle |
75.0 |
76.2 |
(1.2) |
(2) |
% |
|||||||||
|
Used vehicle: |
||||||||||||||
|
Retail |
62.8 |
68.3 |
(5.5) |
(8) |
% |
|||||||||
|
Wholesale |
5.0 |
2.1 |
2.9 |
138 |
% |
|||||||||
|
Total used vehicle |
67.8 |
70.4 |
(2.6) |
(4) |
% |
|||||||||
|
Parts and service |
235.4 |
275.9 |
(40.5) |
(15) |
% |
|||||||||
|
Finance and insurance, net |
137.0 |
151.7 |
(14.7) |
(10) |
% |
|||||||||
|
TOTAL GROSS PROFIT |
515.2 |
574.2 |
(59.0) |
(10) |
% |
|||||||||
|
OPERATING EXPENSES: |
||||||||||||||
|
Selling, general and administrative |
346.9 |
391.7 |
(44.8) |
(11) |
% |
|||||||||
|
Depreciation and amortization |
19.2 |
17.6 |
1.6 |
9 |
% |
|||||||||
|
Franchise rights impairment |
23.0 |
— |
23.0 |
— |
% |
|||||||||
|
Other operating expense, net |
8.9 |
1.2 |
7.7 |
NM |
||||||||||
|
INCOME FROM OPERATIONS |
117.2 |
163.7 |
(46.5) |
(28) |
% |
|||||||||
|
OTHER EXPENSES (INCOME): |
||||||||||||||
|
Floor plan interest expense |
11.1 |
20.7 |
(9.6) |
(46) |
% |
|||||||||
|
Other interest expense, net |
28.8 |
27.5 |
1.3 |
5 |
% |
|||||||||
|
Loss on extinguishment of long-term debt, net |
20.6 |
— |
20.6 |
— |
% |
|||||||||
|
Gain on dealership divestitures, net |
(33.7) |
(11.7) |
(22.0) |
(188) |
% |
|||||||||
|
Total other expenses, net |
26.8 |
36.5 |
(9.7) |
(27) |
% |
|||||||||
|
INCOME BEFORE INCOME TAXES |
90.4 |
127.2 |
(36.8) |
(29) |
% |
|||||||||
|
Income tax expense |
21.3 |
31.4 |
(10.1) |
(32) |
% |
|||||||||
|
NET INCOME |
$ |
69.1 |
$ |
95.8 |
$ |
(26.7) |
(28) |
% |
||||||
|
EARNINGS PER COMMON SHARE: |
||||||||||||||
|
Basic— |
||||||||||||||
|
Net income |
$ |
3.60 |
$ |
4.99 |
$ |
(1.39) |
(28) |
% |
||||||
|
Diluted— |
||||||||||||||
|
Net income |
$ |
3.58 |
$ |
4.96 |
$ |
(1.38) |
(28) |
% |
||||||
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: |
||||||||||||||
|
Basic |
19.2 |
19.2 |
— |
— |
% |
|||||||||
|
Restricted stock |
— |
— |
— |
— |
% |
|||||||||
|
Performance share units |
0.1 |
0.1 |
— |
— |
% |
|||||||||
|
Diluted |
19.3 |
19.3 |
— |
— |
% |
|||||||||
|
______________________________ |
||||||||||||||
|
NM—Not Meaningful |
||||||||||||||
|
|
||||||||||||||
|
KEY OPERATING HIGHLIGHTS (In millions, except per unit data) |
||||||||||||||
|
(Unaudited) |
||||||||||||||
|
For the Six Months |
Increase |
% |
||||||||||||
|
2020 |
2019 |
|||||||||||||
|
Unit sales |
||||||||||||||
|
New vehicle: |
||||||||||||||
|
Luxury |
9,351 |
10,908 |
(1,557) |
(14) |
% |
|||||||||
|
Import |
24,068 |
29,699 |
(5,631) |
(19) |
% |
|||||||||
|
Domestic |
8,618 |
9,951 |
(1,333) |
(13) |
% |
|||||||||
|
Total new vehicle |
42,037 |
50,558 |
(8,521) |
(17) |
% |
|||||||||
|
Used vehicle retail |
38,687 |
43,342 |
(4,655) |
(11) |
% |
|||||||||
|
Used to new ratio |
92.0 |
% |
85.7 |
% |
630 |
bps |
||||||||
|
Average selling price |
||||||||||||||
|
New vehicle |
$ |
37,679 |
$ |
36,335 |
$ |
1,344 |
4 |
% |
||||||
|
Used vehicle retail |
22,194 |
21,799 |
395 |
2 |
% |
|||||||||
|
Average gross profit per unit |
||||||||||||||
|
New vehicle: |
||||||||||||||
|
Luxury |
$ |
3,604 |
$ |
3,511 |
$ |
93 |
3 |
% |
||||||
|
Import |
964 |
717 |
247 |
34 |
% |
|||||||||
|
Domestic |
2,100 |
1,668 |
432 |
26 |
% |
|||||||||
|
Total new vehicle |
1,784 |
1,507 |
277 |
18 |
% |
|||||||||
|
Used vehicle retail |
1,623 |
1,576 |
47 |
3 |
% |
|||||||||
|
Finance and insurance, net |
1,697 |
1,616 |
81 |
5 |
% |
|||||||||
|
Front end yield (1) |
3,404 |
3,154 |
250 |
8 |
% |
|||||||||
|
Gross margin |
||||||||||||||
|
New vehicle: |
||||||||||||||
|
Luxury |
6.5 |
% |
6.3 |
% |
20 |
bps |
||||||||
|
Import |
3.3 |
% |
2.6 |
% |
70 |
bps |
||||||||
|
Domestic |
5.0 |
% |
4.2 |
% |
80 |
bps |
||||||||
|
Total new vehicle |
4.7 |
% |
4.1 |
% |
60 |
bps |
||||||||
|
Used vehicle retail |
7.3 |
% |
7.2 |
% |
10 |
bps |
||||||||
|
Parts and service |
60.2 |
% |
62.4 |
% |
(220) |
bps |
||||||||
|
Total gross profit margin |
16.9 |
% |
16.5 |
% |
40 |
bps |
||||||||
|
SG&A metrics |
||||||||||||||
|
Rent expense |
$ |
12.7 |
$ |
13.6 |
$ |
(0.9) |
(7) |
% |
||||||
|
Total SG&A as a percentage of gross profit |
67.3 |
% |
68.2 |
% |
(90) |
bps |
||||||||
|
SG&A, excluding rent expense as a percentage of gross profit |
64.9 |
% |
65.8 |
% |
(90) |
bps |
||||||||
|
Operating metrics |
||||||||||||||
|
Income from operations as a percentage of revenue |
3.8 |
% |
4.7 |
% |
(90) |
bps |
||||||||
|
Income from operations as a percentage of gross profit |
22.7 |
% |
28.5 |
% |
(580) |
bps |
||||||||
|
Adjusted income from operations as a percentage of revenue |
4.9 |
% |
4.8 |
% |
10 |
bps |
||||||||
|
Adjusted income from operations as a percentage of gross profit |
29.0 |
% |
28.9 |
% |
10 |
bps |
||||||||
|
Revenue mix |
||||||||||||||
|
New vehicle |
51.9 |
% |
52.9 |
% |
||||||||||
|
Used vehicle retail |
28.1 |
% |
27.2 |
% |
||||||||||
|
Used vehicle wholesale |
2.7 |
% |
2.8 |
% |
||||||||||
|
Parts and service |
12.8 |
% |
12.7 |
% |
||||||||||
|
Finance and insurance |
4.5 |
% |
4.4 |
% |
||||||||||
|
Total revenue |
100.0 |
% |
100.0 |
% |
||||||||||
|
Gross profit mix |
||||||||||||||
|
New vehicle |
14.6 |
% |
13.3 |
% |
||||||||||
|
Used vehicle retail |
12.1 |
% |
11.9 |
% |
||||||||||
|
Used vehicle wholesale |
1.0 |
% |
0.4 |
% |
||||||||||
|
Parts and service |
45.7 |
% |
48.0 |
% |
||||||||||
|
Finance and insurance |
26.6 |
% |
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), |
|
|
||||||||||||||
|
SAME STORE OPERATING HIGHLIGHTS (In millions) |
||||||||||||||
|
(Unaudited) |
||||||||||||||
|
For the Six Months |
Increase |
% |
||||||||||||
|
2020 |
2019 |
|||||||||||||
|
Revenue |
||||||||||||||
|
New vehicle: |
||||||||||||||
|
Luxury |
$ |
519.2 |
$ |
603.0 |
$ |
(83.8) |
(14) |
% |
||||||
|
Import |
643.0 |
752.4 |
(109.4) |
(15) |
% |
|||||||||
|
Domestic |
304.7 |
356.4 |
(51.7) |
(15) |
% |
|||||||||
|
Total new vehicle |
1,466.9 |
1,711.8 |
(244.9) |
(14) |
% |
|||||||||
|
Used Vehicle: |
||||||||||||||
|
Retail |
804.3 |
881.4 |
(77.1) |
(9) |
% |
|||||||||
|
Wholesale |
77.4 |
92.3 |
(14.9) |
(16) |
% |
|||||||||
|
Total used vehicle |
881.7 |
973.7 |
(92.0) |
(9) |
% |
|||||||||
|
Parts and service |
365.9 |
417.7 |
(51.8) |
(12) |
% |
|||||||||
|
Finance and insurance, net |
128.2 |
141.5 |
(13.3) |
(9) |
% |
|||||||||
|
Total revenue |
$ |
2,842.7 |
$ |
3,244.7 |
$ |
(402.0) |
(12) |
% |
||||||
|
Gross profit |
||||||||||||||
|
New vehicle: |
||||||||||||||
|
Luxury |
$ |
33.8 |
$ |
38.3 |
$ |
(4.5) |
(12) |
% |
||||||
|
Import |
20.6 |
19.1 |
1.5 |
8 |
% |
|||||||||
|
Domestic |
15.0 |
14.9 |
0.1 |
1 |
% |
|||||||||
|
Total new vehicle |
69.4 |
72.3 |
(2.9) |
(4) |
% |
|||||||||
|
Used Vehicle: |
||||||||||||||
|
Retail |
58.3 |
64.7 |
(6.4) |
(10) |
% |
|||||||||
|
Wholesale |
5.0 |
2.1 |
2.9 |
138 |
% |
|||||||||
|
Total used vehicle |
63.3 |
66.8 |
(3.5) |
(5) |
% |
|||||||||
|
Parts and service: |
||||||||||||||
|
Customer pay |
124.5 |
149.7 |
(25.2) |
(17) |
% |
|||||||||
|
Warranty |
36.2 |
42.1 |
(5.9) |
(14) |
% |
|||||||||
|
Wholesale parts |
9.3 |
10.8 |
(1.5) |
(14) |
% |
|||||||||
|
Parts and service, excluding reconditioning and preparation |
170.0 |
202.6 |
(32.6) |
(16) |
% |
|||||||||
|
Reconditioning and preparation |
50.7 |
58.3 |
(7.6) |
(13) |
% |
|||||||||
|
Total parts and service |
220.7 |
260.9 |
(40.2) |
(15) |
% |
|||||||||
|
Finance and insurance |
128.2 |
141.5 |
(13.3) |
(9) |
% |
|||||||||
|
Total gross profit |
$ |
481.6 |
$ |
541.5 |
$ |
(59.9) |
(11) |
% |
||||||
|
SG&A expense |
$ |
325.3 |
$ |
369.1 |
$ |
(43.8) |
(12) |
% |
||||||
|
SG&A expense as a percentage of gross profit |
67.5 |
% |
68.2 |
% |
(70) 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. |
||||||||||||||
|
|
||||||||||||||
|
SAME STORE OPERATING HIGHLIGHTS (Continued) |
||||||||||||||
|
(Unaudited) |
||||||||||||||
|
For the Six Months |
Increase |
% |
||||||||||||
|
2020 |
2019 |
|||||||||||||
|
Unit sales |
||||||||||||||
|
New vehicle: |
||||||||||||||
|
Luxury |
9,336 |
10,863 |
(1,527) |
(14) |
% |
|||||||||
|
Import |
22,255 |
26,853 |
(4,598) |
(17) |
% |
|||||||||
|
Domestic |
7,306 |
8,959 |
(1,653) |
(18) |
% |
|||||||||
|
Total new vehicle |
38,897 |
46,675 |
(7,778) |
(17) |
% |
|||||||||
|
Used vehicle retail |
35,983 |
40,206 |
(4,223) |
(11) |
% |
|||||||||
|
Used to new ratio |
92.5 |
% |
86.1 |
% |
640 bps |
|||||||||
|
Average selling price |
||||||||||||||
|
New vehicle |
$ |
37,712 |
$ |
36,675 |
$ |
1,037 |
3 |
% |
||||||
|
Used vehicle retail |
22,352 |
21,922 |
430 |
2 |
% |
|||||||||
|
Average gross profit per unit |
||||||||||||||
|
New vehicle: |
||||||||||||||
|
Luxury |
$ |
3,620 |
$ |
3,526 |
$ |
94 |
3 |
% |
||||||
|
Import |
926 |
711 |
215 |
30 |
% |
|||||||||
|
Domestic |
2,053 |
1,663 |
390 |
23 |
% |
|||||||||
|
Total new vehicle |
1,784 |
1,549 |
235 |
15 |
% |
|||||||||
|
Used vehicle retail |
1,620 |
1,609 |
11 |
1 |
% |
|||||||||
|
Finance and insurance, net |
1,712 |
1,629 |
83 |
5 |
% |
|||||||||
|
Front end yield (1) |
3,417 |
3,206 |
211 |
7 |
% |
|||||||||
|
Gross margin |
||||||||||||||
|
New vehicle: |
||||||||||||||
|
Luxury |
6.5 |
% |
6.4 |
% |
10 bps |
|||||||||
|
Import |
3.2 |
% |
2.5 |
% |
70 bps |
|||||||||
|
Domestic |
4.9 |
% |
4.2 |
% |
70 bps |
|||||||||
|
Total new vehicle |
4.7 |
% |
4.2 |
% |
50 bps |
|||||||||
|
Used vehicle retail |
7.2 |
% |
7.3 |
% |
(10) bps |
|||||||||
|
Parts and service: |
||||||||||||||
|
Parts and service, excluding reconditioning and preparation |
46.5 |
% |
48.5 |
% |
(200) bps |
|||||||||
|
Parts and service, including reconditioning and preparation |
60.3 |
% |
||||||||||||