Tue Apr 27 2021
Asbury Automotive Group Announces Record First Quarter 2021 Financial Results
First quarter EPS of
First quarter adjusted EPS of
First quarter revenue increased 36% and gross profit increased 40% over prior year quarter
The financial measures discussed below include both GAAP and adjusted (non-GAAP) financial measures. Please see reconciliations for our non-GAAP metrics included in the accompanying financial tables.
“The first quarter of 2021 was very active for us. In addition to posting record performance, we successfully launched our online car buying platform, Clicklane, across our entire store base. Although we are only one quarter into our five-year plan, we feel more confident than ever in our strategic direction and the future growth of Asbury,” said
The Company reported adjusted net income (a non-GAAP measure) for the first quarter 2021 of
Net income for the first quarter 2021 was adjusted for the following pre-tax items: gain on legal settlements of
Net income for the first quarter 2020 was adjusted for the following pre-tax items: gain on dealership divestitures of
The Company reported total revenue for the first quarter of
First Quarter 2021 Operational Summary
Total company:
- Total revenue increased 36%; total gross profit increased 40%
- New vehicle unit volume increased 24%; used vehicle retail unit volume increased 16%
- Finance and insurance revenue and gross profit increased 25%
- Parts and service revenue increased 18% and gross profit increased 21%
- SG&A as a percentage of gross profit decreased 880 basis points to 62.7%
- Adjusted operating margin of 6.1%, up 180 bps
- Adjusted EPS increased 160%
- Strong balance sheet, ending the quarter with
$551 million of available liquidity (including cash, floor plan offsets, used line and revolver) and pro forma adjusted net leverage of 1.7x
Same store:
- Total revenue increased 18%; gross profit increased 21%
- New vehicle revenue increased 22%; gross profit increased 60%
- Used vehicle retail revenue increased 20%; gross profit increased 36%
- Finance and insurance revenue and gross profit increased 20%
- Parts and service revenue and gross profit increased 1%
Additional commentary regarding the first quarter results will be provided during the earnings conference call on
In addition, live audio of the call will be accessible to the public by calling (800) 353-6461 (domestic), or (334) 323-0501 (international); passcode – 8517555. 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 – 8517555.
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 and the shortage of semi-conductor chips and rubber-based products, 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
|
CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share data) (Unaudited) |
||||||||||||||
|
|
For the Three Months |
|
Increase (Decrease) |
|
% |
|||||||||
|
|
2021 |
|
2020 |
|
|
|||||||||
|
REVENUE: |
|
|
|
|
|
|
|
|||||||
|
New vehicle |
$ |
1,151.7 |
|
|
$ |
822.1 |
|
|
$ |
329.6 |
|
|
40 |
% |
|
Used vehicle: |
|
|
|
|
|
|
|
|||||||
|
Retail |
607.5 |
|
|
446.0 |
|
|
161.5 |
|
|
36 |
% |
|||
|
Wholesale |
83.4 |
|
|
47.2 |
|
|
36.2 |
|
|
77 |
% |
|||
|
Total used vehicle |
690.9 |
|
|
493.2 |
|
|
197.7 |
|
|
40 |
% |
|||
|
Parts and service |
262.0 |
|
|
221.6 |
|
|
40.4 |
|
|
18 |
% |
|||
|
Finance and insurance, net |
88.3 |
|
|
70.4 |
|
|
17.9 |
|
|
25 |
% |
|||
|
TOTAL REVENUE |
2,192.9 |
|
|
1,607.3 |
|
|
585.6 |
|
|
36 |
% |
|||
|
GROSS PROFIT: |
|
|
|
|
|
|
|
|||||||
|
New vehicle |
75.5 |
|
|
36.4 |
|
|
39.1 |
|
|
107 |
% |
|||
|
Used vehicle: |
|
|
|
|
|
|
|
|||||||
|
Retail |
47.5 |
|
|
31.2 |
|
|
16.3 |
|
|
52 |
% |
|||
|
Wholesale |
8.3 |
|
|
(0.5) |
|
|
8.8 |
|
|
NM |
||||
|
Total used vehicle |
55.8 |
|
|
30.7 |
|
|
25.1 |
|
|
82 |
% |
|||
|
Parts and service |
163.1 |
|
|
134.9 |
|
|
28.2 |
|
|
21 |
% |
|||
|
Finance and insurance, net |
88.3 |
|
|
70.4 |
|
|
17.9 |
|
|
25 |
% |
|||
|
TOTAL GROSS PROFIT |
382.7 |
|
|
272.4 |
|
|
110.3 |
|
|
40 |
% |
|||
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|||||||
|
Selling, general and administrative |
239.8 |
|
|
194.7 |
|
|
45.1 |
|
|
23 |
% |
|||
|
Depreciation and amortization |
9.8 |
|
|
9.5 |
|
|
0.3 |
|
|
3 |
% |
|||
|
Franchise rights impairment |
— |
|
|
23.0 |
|
|
(23.0) |
|
|
(100) |
% |
|||
|
Other operating (income) expense, net |
(3.2) |
|
|
10.2 |
|
|
(13.4) |
|
|
(131) |
% |
|||
|
INCOME FROM OPERATIONS |
136.3 |
|
|
35.0 |
|
|
101.3 |
|
|
289 |
% |
|||
|
OTHER EXPENSES (INCOME): |
|
|
|
|
|
|
|
|||||||
|
Floor plan interest expense |
2.9 |
|
|
7.0 |
|
|
(4.1) |
|
|
(59) |
% |
|||
|
Other interest expense, net |
14.0 |
|
|
17.0 |
|
|
(3.0) |
|
|
(18) |
% |
|||
|
Loss on extinguishment of long-term debt, net |
— |
|
|
20.6 |
|
|
(20.6) |
|
|
(100) |
% |
|||
|
Gain on dealership divestitures, net |
— |
|
|
(33.7) |
|
|
33.7 |
|
|
100 |
% |
|||
|
Total other expenses, net |
16.9 |
|
|
10.9 |
|
|
6.0 |
|
|
55 |
% |
|||
|
INCOME BEFORE INCOME TAXES |
119.4 |
|
|
24.1 |
|
|
95.3 |
|
|
395 |
% |
|||
|
Income tax expense |
26.6 |
|
|
4.6 |
|
|
22.0 |
|
|
478 |
% |
|||
|
NET INCOME |
$ |
92.8 |
|
|
$ |
19.5 |
|
|
$ |
73.3 |
|
|
376 |
% |
|
EARNINGS PER COMMON SHARE: |
|
|
|
|
|
|
|
|||||||
|
Basic— |
|
|
|
|
|
|
|
|||||||
|
Net income |
$ |
4.81 |
|
|
$ |
1.02 |
|
|
$ |
3.79 |
|
|
372 |
% |
|
Diluted— |
|
|
|
|
|
|
|
|||||||
|
Net income |
$ |
4.78 |
|
|
$ |
1.01 |
|
|
$ |
3.77 |
|
|
373 |
% |
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: |
|
|
|
|
|
|
|
|||||||
|
Basic |
19.3 |
|
|
19.1 |
|
|
0.2 |
|
|
|
||||
|
Restricted stock |
0.1 |
|
|
0.1 |
|
|
— |
|
|
|
||||
|
Performance share units |
— |
|
|
0.1 |
|
|
(0.1) |
|
|
|
||||
|
Diluted |
19.4 |
|
|
19.3 |
|
|
0.1 |
|
|
|
||||
|
______________________________ |
||||||||||||||
|
NM—Not Meaningful |
||||||||||||||
|
KEY OPERATING HIGHLIGHTS (In millions, except per unit data) (Unaudited) |
||||||||||||||
|
|
For the Three Months |
|
Increase (Decrease) |
|
% Change |
|||||||||
|
|
2021 |
|
2020 |
|
|
|||||||||
|
Unit sales |
|
|
|
|
|
|
|
|||||||
|
New vehicle: |
|
|
|
|
|
|
|
|||||||
|
Luxury |
8,511 |
|
|
4,992 |
|
|
3,519 |
|
|
70 |
% |
|||
|
Import |
14,377 |
|
|
12,458 |
|
|
1,919 |
|
|
15 |
% |
|||
|
Domestic |
4,371 |
|
|
4,527 |
|
|
(156) |
|
|
(3) |
% |
|||
|
Total new vehicle |
27,259 |
|
|
21,977 |
|
|
5,282 |
|
|
24 |
% |
|||
|
Used vehicle retail |
23,519 |
|
|
20,287 |
|
|
3,232 |
|
|
16 |
% |
|||
|
Used to new ratio |
86.3 |
% |
|
92.3 |
% |
|
(600) bps |
|
|
|||||
|
Average selling price |
|
|
|
|
|
|
|
|||||||
|
New vehicle |
$ |
42,250 |
|
|
$ |
37,407 |
|
|
$ |
4,843 |
|
|
13 |
% |
|
Used vehicle retail |
25,830 |
|
|
21,985 |
|
|
3,845 |
|
|
17 |
% |
|||
|
Average gross profit per unit |
|
|
|
|
|
|
|
|||||||
|
New vehicle: |
|
|
|
|
|
|
|
|||||||
|
Luxury |
$ |
5,252 |
|
|
$ |
3,385 |
|
|
$ |
1,867 |
|
|
55 |
% |
|
Import |
1,259 |
|
|
851 |
|
|
408 |
|
|
48 |
% |
|||
|
Domestic |
2,906 |
|
|
1,966 |
|
|
940 |
|
|
48 |
% |
|||
|
Total new vehicle |
2,770 |
|
|
1,656 |
|
|
1,114 |
|
|
67 |
% |
|||
|
Used vehicle retail |
2,020 |
|
|
1,538 |
|
|
482 |
|
|
31 |
% |
|||
|
Finance and insurance, net |
1,739 |
|
|
1,666 |
|
|
73 |
|
|
4 |
% |
|||
|
Front end yield (1) |
4,161 |
|
|
3,265 |
|
|
896 |
|
|
27 |
% |
|||
|
Gross margin |
|
|
|
|
|
|
|
|||||||
|
New vehicle: |
|
|
|
|
|
|
|
|||||||
|
Luxury |
8.6 |
% |
|
6.1 |
% |
|
250 bps |
|
|
|||||
|
Import |
4.1 |
% |
|
3.0 |
% |
|
110 bps |
|
|
|||||
|
Domestic |
6.5 |
% |
|
4.7 |
% |
|
180 bps |
|
|
|||||
|
Total new vehicle |
6.6 |
% |
|
4.4 |
% |
|
220 bps |
|
|
|||||
|
Used vehicle retail |
7.8 |
% |
|
7.0 |
% |
|
80 bps |
|
|
|||||
|
Parts and service |
62.3 |
% |
|
60.9 |
% |
|
140 bps |
|
|
|||||
|
Total gross profit margin |
17.5 |
% |
|
16.9 |
% |
|
60 bps |
|
|
|||||
|
SG&A metrics |
|
|
|
|
|
|
|
|||||||
|
Rent expense |
$ |
11.2 |
|
|
$ |
6.8 |
|
|
$ |
4.4 |
|
|
65 |
% |
|
SG&A as a percentage of gross profit |
62.7 |
% |
|
71.5 |
% |
|
(880) bps |
|
|
|||||
|
SG&A, excluding rent expense as a percentage of gross profit |
59.7 |
% |
|
69.0 |
% |
|
(930) bps |
|
|
|||||
|
Operating metrics |
|
|
|
|
|
|
|
|||||||
|
Income from operations as a percentage of revenue |
6.2 |
% |
|
2.2 |
% |
|
400 |
bps |
|
|
||||
|
Income from operations as a percentage of gross profit |
35.6 |
% |
|
12.8 |
% |
|
2,280 |
bps |
|
|
||||
|
Adjusted income from operations as a percentage of revenue |
6.1 |
% |
|
4.3 |
% |
|
180 |
bps |
|
|
||||
|
Adjusted income from operations as a percentage of gross profit |
34.9 |
% |
|
25.1 |
% |
|
980 bps |
|
|
|||||
|
Revenue mix |
|
|
|
|
|
|
|
|||||||
|
New vehicle |
52.5 |
% |
|
51.1 |
% |
|
|
|
|
|||||
|
Used vehicle retail |
27.8 |
% |
|
27.8 |
% |
|
|
|
|
|||||
|
Used vehicle wholesale |
3.8 |
% |
|
2.9 |
% |
|
|
|
|
|||||
|
Parts and service |
11.9 |
% |
|
13.8 |
% |
|
|
|
|
|||||
|
Finance and insurance |
4.0 |
% |
|
4.4 |
% |
|
|
|
|
|||||
|
Total revenue |
100.0 |
% |
|
100.0 |
% |
|
|
|
|
|||||
|
Gross profit mix |
|
|
|
|
|
|
|
|||||||
|
New vehicle |
19.7 |
% |
|
13.4 |
% |
|
|
|
|
|||||
|
Used vehicle retail |
12.4 |
% |
|
11.5 |
% |
|
|
|
|
|||||
|
Used vehicle wholesale |
2.2 |
% |
|
(0.2) |
% |
|
|
|
|
|||||
|
Parts and service |
42.6 |
% |
|
49.5 |
% |
|
|
|
|
|||||
|
Finance and insurance |
23.1 |
% |
|
25.8 |
% |
|
|
|
|
|||||
|
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. |
|
|
SAME STORE OPERATING HIGHLIGHTS (In millions) (Unaudited) |
||||||||||||||
|
|
For the Three Months Ended |
|
Increase (Decrease) |
|
% |
|||||||||
|
|
2021 |
|
2020 |
|
|
|||||||||
|
Revenue |
|
|
|
|
|
|
|
|||||||
|
New vehicle: |
|
|
|
|
|
|
|
|||||||
|
Luxury |
$ |
322.2 |
|
|
$ |
267.2 |
|
|
$ |
55.0 |
|
|
21 |
% |
|
Import |
438.1 |
|
|
342.5 |
|
|
95.6 |
|
|
28 |
% |
|||
|
Domestic |
189.5 |
|
|
171.4 |
|
|
18.1 |
|
|
11 |
% |
|||
|
Total new vehicle |
949.8 |
|
|
781.1 |
|
|
168.7 |
|
|
22 |
% |
|||
|
Used Vehicle: |
|
|
|
|
|
|
|
|||||||
|
Retail |
499.9 |
|
|
416.9 |
|
|
83.0 |
|
|
20 |
% |
|||
|
Wholesale |
57.3 |
|
|
44.8 |
|
|
12.5 |
|
|
28 |
% |
|||
|
Total used vehicle |
557.2 |
|
|
461.7 |
|
|
95.5 |
|
|
21 |
% |
|||
|
Parts and service |
212.4 |
|
|
211.1 |
|
|
1.3 |
|
|
1 |
% |
|||
|
Finance and insurance, net |
80.7 |
|
|
67.2 |
|
|
13.5 |
|
|
20 |
% |
|||
|
Total revenue |
$ |
1,800.1 |
|
|
$ |
1,521.1 |
|
|
$ |
279.0 |
|
|
18 |
% |
|
|
|
|
|
|
|
|
|
|||||||
|
Gross profit |
|
|
|
|
|
|
|
|||||||
|
New vehicle: |
|
|
|
|
|
|
|
|||||||
|
Luxury |
$ |
24.7 |
|
|
$ |
16.3 |
|
|
$ |
8.4 |
|
|
52 |
% |
|
Import |
18.4 |
|
|
10.2 |
|
|
8.2 |
|
|
80 |
% |
|||
|
Domestic |
12.4 |
|
|
8.2 |
|
|
4.2 |
|
|
51 |
% |
|||
|
Total new vehicle |
55.5 |
|
|
34.7 |
|
|
20.8 |
|
|
60 |
% |
|||
|
Used Vehicle: |
|
|
|
|
|
|
|
|||||||
|
Retail |
40.3 |
|
|
29.6 |
|
|
10.7 |
|
|
36 |
% |
|||
|
Wholesale |
6.4 |
|
|
(0.4) |
|
|
6.8 |
|
|
NM |
||||
|
Total used vehicle |
46.7 |
|
|
29.2 |
|
|
17.5 |
|
|
60 |
% |
|||
|
Parts and service: |
|
|
|
|
|
|
|
|||||||
|
Customer pay |
77.1 |
|
|
74.8 |
|
|
2.3 |
|
|
3 |
% |
|||
|
Warranty |
18.3 |
|
|
21.1 |
|
|
(2.8) |
|
|
(13) |
% |
|||
|
Wholesale parts |
5.8 |
|
|
4.7 |
|
|
1.1 |
|
|
23 |
% |
|||
|
Parts and service, excluding reconditioning and preparation |
101.2 |
|
|
100.6 |
|
|
0.6 |
|
|
1 |
% |
|||
|
Reconditioning and preparation |
29.3 |
|
|
28.0 |
|
|
1.3 |
|
|
5 |
% |
|||
|
Total parts and service |
130.5 |
|
|
128.6 |
|
|
1.9 |
|
|
1 |
% |
|||
|
Finance and insurance |
80.7 |
|
|
67.2 |
|
|
13.5 |
|
|
20 |
% |
|||
|
Total gross profit |
$ |
313.4 |
|
|
$ |
259.7 |
|
|
$ |
53.7 |
|
|
21 |
% |
|
|
|
|
|
|
|
|
|
|||||||
|
SG&A expense |
$ |
199.8 |
|
|
$ |
185.1 |
|
|
$ |
14.7 |
|
|
8 |
% |
|
SG&A expense as a percentage of gross profit |
63.8 |
% |
|
71.3 |
% |
|
(750) 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 Ended |
|
Increase (Decrease) |
|
% |
|||||||||
|
|
2021 |
|
2020 |
|
|
|||||||||
|
Unit sales |
|
|
|
|
|
|
|
|||||||
|
New vehicle: |
|
|
|
|
|
|
|
|||||||
|
Luxury |
5,526 |
|
|
4,820 |
|
|
706 |
|
|
15 |
% |
|||
|
Import |
14,351 |
|
|
11,955 |
|
|
2,396 |
|
|
20 |
% |
|||
|
Domestic |
4,270 |
|
|
4,158 |
|
|
112 |
|
|
3 |
% |
|||
|
Total new vehicle |
24,147 |
|
|
20,933 |
|
|
3,214 |
|
|
15 |
% |
|||
|
Used vehicle retail |
20,740 |
|
|
18,979 |
|
|
1,761 |
|
|
9 |
% |
|||
|
Used to new ratio |
85.9 |
% |
|
90.7 |
% |
|
(480) bps |
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||
|
Average selling price |
|
|
|
|
|
|
|
|||||||
|
New vehicle |
$ |
39,334 |
|
|
$ |
37,314 |
|
|
$ |
2,020 |
|
|
5 |
% |
|
Used vehicle retail |
24,103 |
|
|
21,966 |
|
|
2,137 |
|
|
10 |
% |
|||
|
|
|
|
|
|
|
|
|
|||||||
|
Average gross profit per unit |
|
|
|
|
|
|
|
|||||||
|
New vehicle: |
|
|
|
|
|
|
|
|||||||
|
Luxury |
$ |
4,470 |
|
|
$ |
3,382 |
|
|
$ |
1,088 |
|
|
32 |
% |
|
Import |
1,282 |
|
|
853 |
|
|
429 |
|
|
50 |
% |
|||
|
Domestic |
2,904 |
|
|
1,972 |
|
|
932 |
|
|
47 |
% |
|||
|
Total new vehicle |
2,298 |
|
|
1,658 |
|
|
640 |
|
|
39 |
% |
|||
|
Used vehicle retail |
1,943 |
|
|
1,560 |
|
|
383 |
|
|
25 |
% |
|||
|
Finance and insurance, net |
1,798 |
|
|
1,684 |
|
|
114 |
|
|
7 |
% |
|||
|
Front end yield (1) |
3,932 |
|
|
3,295 |
|
|
637 |
|
|
19 |
% |
|||
|
|
|
|
|
|
|
|
|
|||||||
|
Gross margin |
|
|
|
|
|
|
|
|||||||
|
New vehicle: |
|
|
|
|
|
|
|
|||||||
|
Luxury |
7.7 |
% |
|
6.1 |
% |
|
160 bps |
|
|
|||||
|
Import |
4.2 |
% |
|
3.0 |
% |
|
120 bps |
|
|
|||||
|
Domestic |
6.5 |
% |
|
4.8 |
% |
|
170 bps |
|
|
|||||
|
Total new vehicle |
5.8 |
% |
|
4.4 |
% |
|
140 bps |
|
|
|||||
|
Used vehicle retail |
8.1 |
% |
|
7.1 |
% |
|
100 bps |
|
|
|||||
|
Parts and service: |
|
|
|
|
|
|
|
|||||||
|
Parts and service, excluding reconditioning and preparation |
47.6 |
% |
|
47.7 |
% |
|
(10) bps |
|
|
|||||
|
Parts and service, including reconditioning and preparation |
61.4 |
% |
|
60.9 |
% |
|
50 bps |
|
|
|||||
|
Total gross profit margin |
17.4 |
% |
|
17.1 |
% |
|
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. |
|
Additional Disclosures (In millions) (Unaudited) |
||||||||||||||
|
|
|
|
|
|
Increase |
|
% Change |
|||||||
|
SELECTED BALANCE SHEET DATA |
|
|
|
|
|
|
|
|||||||
|
Cash and cash equivalents |
$ |
27.8 |
|
|
$ |
1.4 |
|
|
$ |
26.4 |
|
|
NM |
|
|
New vehicle inventory (a) |
527.5 |
|
|
640.0 |
|
|
(112.5) |
|
|
(18) |
% |
|||
|
Used vehicle inventory (b) |
193.5 |
|
|
188.5 |
|
|
5.0 |
|
|
3 |
% |
|||
|
Parts inventory (c) |
48.6 |
|
|
46.7 |
|
|
1.9 |
|
|
4 |
% |
|||
|
Total current assets |
1,317.6 |
|
|
1,405.7 |
|
|
(88.1) |
|
|
(6) |
% |
|||
|
Floor plan notes payable (d) |
526.8 |
|
|
702.2 |
|
|
(175.4) |
|
|
(25) |
% |
|||
|
Total current liabilities |
1,048.7 |
|
|
1,223.4 |
|
|
(174.7) |
|
|
(14) |
% |
|||
|
CAPITALIZATION: |
|
|
|
|
|
|
|
|||||||
|
Long-term debt (including current portion) (e) |
$ |
1,194.1 |
|
|
$ |
1,201.8 |
|
|
$ |
(7.7) |
|
|
(1) |
% |
|
Shareholders' equity |
998.0 |
|
|
905.5 |
|
|
92.5 |
|
|
10 |
% |
|||
|
Total |
$ |
2,192.1 |
|
|
$ |
2,107.3 |
|
|
$ |
84.8 |
|
|
4 |
% |
|
_____________________________ |
||||||||||||||
|
NM—Not Meaningful |
||||||||||||||
|
(a) |
Excluding |
|
|
(b) |
Excluding |
|
|
(c) |
Excluding |
|
|
(d) |
Excluding |
|
|
(e) |
Excluding |
|
|
|
|
|
|
|
|||
|
DAYS SUPPLY |
|
|
|
|
|
|||
|
New vehicle inventory |
34 |
|
|
40 |
|
|
105 |
|
|
Used vehicle inventory |
27 |
|
|
31 |
|
|
42 |
|
|
_____________________________ |
|
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 Three Months Ended |
||||
|
|
2021 |
|
2020 |
||
|
Luxury: |
|
|
|
||
|
Mercedes-Benz |
12 |
% |
|
8 |
% |
|
Lexus |
12 |
% |
|
7 |
% |
|
BMW |
5 |
% |
|
6 |
% |
|
Acura |
4 |
% |
|
4 |
% |
|
Range Rover |
3 |
% |
|
1 |
% |
|
Audi |
2 |
% |
|
2 |
% |
|
Porsche |
2 |
% |
|
— |
% |
|
Other luxury |
5 |
% |
|
6 |
% |
|
Total luxury |
45 |
% |
|
34 |
% |
|
Imports: |
|
|
|
||
|
Honda |
15 |
% |
|
17 |
% |
|
|
12 |
% |
|
13 |
% |
|
Nissan |
5 |
% |
|
7 |
% |
|
Other imports |
6 |
% |
|
6 |
% |
|
Total imports |
38 |
% |
|
43 |
% |
|
Domestic: |
|
|
|
||
|
Ford |
6 |
% |
|
10 |
% |
|
Chevrolet |
4 |
% |
|
6 |
% |
|
Dodge |
4 |
% |
|
4 |
% |
|
Other domestics |
3 |
% |
|
3 |
% |
|
Total domestic |
17 |
% |
|
23 |
% |
|
Total New Vehicle Revenue |
100 |
% |
|
100 |
% |
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 "Pro forma 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 |
||||||
|
|
|
|
|
||||
|
|
(Dollars in millions) |
||||||
|
Adjusted leverage ratio: |
|
|
|
||||
|
Long-term debt (including current portion) |
$ |
1,194.1 |
|
|
$ |
1,201.8 |
|
|
Debt included in Liabilities held for sale |
2.3 |
|
|
8.9 |
|
||
|
Cash and floor plan offset |
(173.2) |
|
|
(86.8) |
|
||
|
Availability under our used vehicle revolving floor plan facility |
(138.8) |
|
|
(137.8) |
|
||
|
Adjusted long-term net debt |
$ |
884.4 |
|
|
$ |
986.1 |
|
|
|
|
|
|
||||
|
Calculation of earnings before interest, taxes, depreciation and amortization ("EBITDA"): |
|
|
|
||||
|
Net Income |
$ |
327.6 |
|
|
$ |
254.4 |
|
|
|
|
|
|
||||
|
Depreciation and amortization |
38.8 |
|
|
38.5 |
|
||
|
Income tax expense |
105.9 |
|
|
83.7 |
|
||
|
Swap and other interest expense |
54.2 |
|
|
57.6 |
|
||
|
Earnings before interest, taxes, depreciation and amortization ("EBITDA") |
$ |
526.5 |
|
|
$ |
434.2 |
|
|
|
|
|
|
||||
|
Non-core items - expense (income): |
|
|
|
||||
|
Gain on dealership divestitures |
$ |
(28.6) |
|
|
$ |
(62.3) |
|
|
Legal settlements |
(4.7) |
|
|
(2.1) |
|
||
|
Gain on sale of real estate |
(1.1) |
|
|
(0.3) |
|
||
|
|
1.3 |
|
|
12.9 |
|
||
|
Real estate-related charges |
2.5 |
|
|
0.7 |
|
||
|
Franchise rights impairment |
— |
|
|
23.0 |
|
||
|
Loss on debt extinguishment |
— |
|
|
20.7 |
|
||
|
Total non-core items |
(30.6) |
|
|
(7.4) |
|
||
|
|
|
|
|
||||
|
Adjusted EBITDA |
$ |
495.9 |
|
|
$ |
426.8 |
|
|
|
|
|
|
||||
|
Pro forma impact of acquisitions and divestitures on EBITDA |
$ |
29.9 |
|
|
$ |
53.1 |
|
|
Pro forma Adjusted EBITDA |
$ |
525.8 |
|
|
$ |
479.9 |
|
|
|
|
|
|
||||
|
Pro forma Adjusted net leverage ratio |
1.7 |
|
|
2.1 |
|
||
|
|
For the Three Months |
||||
|
|
2021 |
2020 |
|||
|
|
(In millions, except per share data) |
||||
|
Adjusted income from operations: |
|
|
|||
|
Income from operations |
$ |
136.3 |
$ |
35.0 |
|
|
Legal settlements |
(3.5) |
(0.9) |
|||
|
Gain on sale of real estate |
(1.1) |
(0.3) |
|||
|
Real estate related charges |
1.8 |
— |
|||
|
|
— |
11.6 |
|||
|
Franchise rights impairment |
— |
23.0 |
|||
|
Adjusted income from operations |
$ |
133.5 |
$ |
68.4 |
|
|
|
|
|
|||
|
Adjusted net income: |
|
|
|||
|
Net income |
$ |
92.8 |
$ |
19.5 |
|
|
|
|
|
|||
|
Non-core items - (income) expense: |
|
|
|||
|
Legal settlements |
(3.5) |
(0.9) |
|||
|
Gain on sale of real estate |
(1.1) |
(0.3) |
|||
|
Real estate related charges |
1.8 |
— |
|||
|
Gain on dealership divestitures |
— |
(33.7) |
|||
|
Loss on extinguishment of debt |
— |
20.7 |
|||
|
Franchise rights impairment |
— |
23.0 |
|||
|
|
— |
11.6 |
|||
|
Income tax effect on non-core items above |
0.7 |
(5.2) |
|||
|
Total non-core items |
(2.1) |
15.2 |
|||
|
Adjusted net income |
$ |
90.7 |
$ |
34.7 |
|
|
|
|
|
|||
|
Adjusted diluted earnings per share (EPS): |
|
|
|||
|
Diluted EPS |
$ |
4.78 |
$ |
1.01 |
|
|
|
|
|
|||
|
Total non-core items |
(0.10) |
0.79 |
|||
|
Adjusted diluted EPS |
$ |
4.68 |
$ |
1.80 |
|
|
|
|
|
|||
|
Weighted average common shares outstanding - diluted |
19.4 |
19.3 |
|||
View source version on businesswire.com: https://www.businesswire.com/news/home/20210427005242/en/
VP & Treasurer
(770) 418-8211
ir@asburyauto.com
Source: