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Asbury Automotive Group Announces 2019 Second Quarter Financial Results

Record second quarter EPS of $2.84 per diluted share, up 35% over prior year EPS

Record second quarter adjusted EPS of $2.38 per diluted share (a non-GAAP measure), up 14% over prior year EPS

DULUTH, Ga., July 26, 2019 /PRNewswire/ -- Asbury Automotive Group, Inc. (ABG), one of the largest automotive retail and service companies in the U.S., reported net income for the second quarter 2019 of $54.9 million ($2.84 per diluted share) and adjusted net income (a non-GAAP measure) of $45.9 million ($2.38 per diluted share). This compares to net income of $43.2 million ($2.11 per diluted share) in the prior year quarter and adjusted net income of $42.7 million ($2.08 per diluted share).

Net income for the second quarter 2019 was adjusted for a gain on  divestiture of our Nissan Houston store of $11.7 million pre-tax ($0.45 per diluted share) and gain on sale of land of $0.3 million ($0.01 per diluted share). Net income for the second quarter 2018 was adjusted for gains from legal settlements of $0.7 million pre-tax ($0.03 per diluted share)

"In a lower SAAR environment, we grew revenue 5%, delivered 10% parts and service revenue growth, improved our SG&A as a percentage of gross profit 60 basis points, and grew adjusted EPS 14%," said David Hult, Asbury's President and Chief Executive Officer. "While we experienced new vehicle margin pressure, we were able to grow our total front end yield by over $50 per vehicle."

Second Quarter 2019 Operational Summary

Total company:

  • Total revenue increased 5%; gross profit increased 6%
  • Gross margin increased 30 basis points to 16.4%
  • SG&A as a percentage of gross profit decreased 60 basis points to 68.0%
  • Adjusted income from operations increased 8%
  • Adjusted operating margin increased 20 basis points to 4.8%
  • Adjusted EPS from continuing operations increased 14%

Same store:

  • Total revenue increased 2%; gross profit increased 4%
  • New vehicle revenue was flat; gross profit decreased 9%
  • Used vehicle retail revenue increased 1%; gross profit decreased 1%
  • Finance and insurance revenue and gross profit increased 7%
  • Parts and service revenue increased 8%; gross profit increased 6%

Strategic Highlights:

  • Divested our Nissan store in Houston, TX
  • Signed agreements to acquire two import stores, one in the Indianapolis market and one in a new market. We expect to close both in the third quarter, subject to customary closing conditions, and these stores to generate approximately $175 million in combined annualized revenue.
  • Repurchased $4 million of common stock.

Additional commentary regarding the second quarter results will be provided during the earnings conference call on July 26, 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 (888) 254-3590 (international); passcode - 1004437.  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 - 1004437.

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 86 dealerships, consisting of 105 franchises, representing 30 domestic and foreign brands of vehicles.  Asbury also operates 24 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 digital 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 June 30,


Increase
(Decrease)


%
Change


2019


2018



REVENUE:








New vehicle

$

965.2



$

928.7



$

36.5



4

%

Used vehicle:








Retail

486.6



470.9



15.7



3

%

Wholesale

47.0



46.0



1.0



2

%

     Total used vehicle

533.6



516.9



16.7



3

%

Parts and service

224.5



204.5



20.0



10

%

Finance and insurance, net

80.2



73.5



6.7



9

%

TOTAL REVENUE

1,803.5



1,723.6



79.9



5

%

GROSS PROFIT:








New vehicle

38.3



40.6



(2.3)



(6)

%

Used vehicle:








Retail

34.7



33.6



1.1



3

%

Wholesale

1.2



0.5



0.7



140

%

     Total used vehicle

35.9



34.1



1.8



5

%

Parts and service

140.6



129.6



11.0



8

%

Finance and insurance, net

80.2



73.5



6.7



9

%

TOTAL GROSS PROFIT

295.0



277.8



17.2



6

%

OPERATING EXPENSES:








Selling, general and administrative

200.7



190.6



10.1



5

%

Depreciation and amortization

9.0



8.5



0.5



6

%

Other operating (income) expenses, net

(0.6)



(0.9)



0.3



33

%

INCOME FROM OPERATIONS

85.9



79.6



6.3



8

%

OTHER EXPENSES (INCOME):








Floor plan interest expense

10.5



8.0



2.5



31

%

Other interest expense, net

13.6



13.2



0.4



3

%

Swap interest expense



0.2



(0.2)



(100)

%

Gain on divestiture

(11.7)





(11.7)



NM


Total other expenses, net

12.4



21.4



(9.0)



(42)

%

INCOME BEFORE INCOME TAXES

73.5



58.2



15.3



26

%

Income tax expense

18.6



15.0



3.6



24

%

NET INCOME

$

54.9



$

43.2



$

11.7



27

%

EARNINGS PER COMMON SHARE:








Basic—








Net income

$

2.87



$

2.13



$

0.74



35

%

Diluted—








Net income

$

2.84



$

2.11



$

0.73



35

%

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 Three Months
Ended June 30,


Increase
(Decrease)


%
Change


2019


2018



Unit sales








New vehicle:








Luxury

5,746



5,590



156



3

%

Import

15,256



15,478



(222)



(1)

%

Domestic

5,447



5,001



446



9

%

     Total new vehicle

26,449



26,069



380



1

%

Used vehicle retail

22,259



21,685



574



3

%

Used to new ratio

84.2

%


83.2

%


100 bps




Average selling price








New vehicle

$

36,493



$

35,625



$

868



2

%

Used vehicle retail

21,861



21,715



146



1

%

Average gross profit per unit








New vehicle:








Luxury

$

3,341



$

3,470



$

(129)



(4)

%

Import

623



808



(185)



(23)

%

Domestic

1,762



1,740



22



1

%

Total new vehicle

1,448



1,557



(109)



(7)

%

Used vehicle retail

1,559



1,549



10



1

%

Finance and insurance, net

1,647



1,539



108



7

%

Front end yield (1)

3,145



3,093



52



2

%

Gross margin








New vehicle:








Luxury

6.1

%


6.5

%


(40) bps




Import

2.2

%


2.9

%


(70) bps




Domestic

4.4

%


4.5

%


(10) bps




Total new vehicle

4.0

%


4.4

%


(40) bps




Used vehicle retail

7.1

%


7.1

%


0 bps




Parts and service

62.6

%


63.4

%


(80) bps




Total gross profit margin

16.4

%


16.1

%


30 bps




SG&A metrics








Rent expense

$

6.8



$

6.3



$

0.5



8

%

Total SG&A as a percentage of gross profit

68.0

%


68.6

%


(60) bps




SG&A, excluding rent expense as a percentage of gross profit

65.7

%


66.3

%


(60) bps




Operating metrics








Income from operations as a percentage of revenue

4.8

%


4.6

%


20 bps




Income from operations as a percentage of gross profit

29.1

%


28.7

%


40 bps




Adjusted income from operations as a percentage of revenue

4.7

%


4.6

%


10 bps




Adjusted income from operations as a percentage of gross profit

29.0

%


28.4

%


60 bps




Revenue mix








New vehicle

53.5

%


53.9

%





Used vehicle retail

27.1

%


27.2

%





Used vehicle wholesale

2.6

%


2.7

%





Parts and service

12.4

%


11.9

%





Finance and insurance

4.4

%


4.3

%





     Total revenue

100.0

%


100.0

%





Gross profit mix








New vehicle

13.0

%


14.6

%





Used vehicle retail

11.7

%


12.0

%





Used vehicle wholesale

0.4

%


0.2

%





Parts and service

47.7

%


46.7

%





Finance and insurance

27.2

%


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 Three Months
Ended June 30,


Increase
(Decrease)


%
Change


2019


2018



Revenue








New vehicle:








Luxury

$

315.1



$

299.9



$

15.2



5

%

Import

423.3



423.8



(0.5)



%

Domestic

181.4



193.2



(11.8)



(6)

%

     Total new vehicle

919.8



916.9



2.9



%

Used Vehicle:








Retail

465.2



462.5



2.7



1

%

Wholesale

45.3



44.9



0.4



1

%

     Total used vehicle

510.5



507.4



3.1



1

%

Parts and service

217.5



201.8



15.7



8

%

Finance and insurance

77.0



71.8



5.2



7

%

Total revenue

$

1,724.8



$

1,697.9



$

26.9



2

%









Gross profit








New vehicle:








Luxury

$

19.2



$

19.4



$

(0.2)



(1)

%

Import

9.5



12.0



(2.5)



(21)

%

Domestic

7.6



8.7



(1.1)



(13)

%

     Total new vehicle

36.3



40.1



(3.8)



(9)

%

Used Vehicle:








Retail

32.9



33.3



(0.4)



(1)

%

Wholesale

1.2



0.5



0.7



140

%

     Total used vehicle

34.1



33.8



0.3



1

%

Parts and service:








Customer pay

77.2



73.3



3.9



5

%

Warranty

21.6



18.2



3.4



19

%

Wholesale parts

5.7



5.4



0.3



6

%

     Parts and service, excluding reconditioning and preparation

104.5



96.9



7.6



8

%

Reconditioning and preparation

31.3



31.0



0.3



1

%

Total parts and service

135.8



127.9



7.9



6

%

Finance and insurance

77.0



71.8



5.2



7

%

Total gross profit

$

283.2



$

273.6



$

9.6



4

%









SG&A expense

$

192.1



$

187.3



$

4.8



3

%

SG&A expense as a percentage of gross profit

67.8

%


68.5

%


(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.


 

 

ASBURY AUTOMOTIVE GROUP, INC.

SAME STORE OPERATING HIGHLIGHTS (Continued)

(Unaudited)



For the Three Months
Ended June 30,


Increase
(Decrease)


%
Change


2019


2018



Unit sales








New vehicle:








Luxury

5,719



5,590



129



2

%

Import

15,031



15,053



(22)



%

Domestic

4,483



5,001



(518)



(10)

%

     Total new vehicle

25,233



25,644



(411)



(2)

%

Used vehicle retail

21,176



21,252



(76)



%

Used to new ratio

83.9

%


82.9

%


100

bps











Average selling price








New vehicle

$

36,452



$

35,755



$

697



2

%

Used vehicle retail

21,968



21,763



205



1

%









Average gross profit per unit








New vehicle:








Luxury

$

3,357



$

3,470



$

(113)



(3)

%

Import

632



797



(165)



(21)

%

Domestic

1,695



1,740



(45)



(3)

%

Total new vehicle

1,439



1,564



(125)



(8)

%

Used vehicle retail

1,554



1,567



(13)



(1)

%

Finance and insurance, net

1,659



1,531



128



8

%

Front end yield (1)

3,150



3,096



54



2

%









Gross margin








New vehicle:








Luxury

6.1

%


6.5

%


(40)

bps



Import

2.2

%


2.8

%


(60)

bps



Domestic

4.2

%


4.5

%


(30)

bps



Total new vehicle

3.9

%


4.4

%


(50)

bps



Used vehicle retail

7.1

%


7.2

%


(10)

bps



Parts and service:








Parts and service, excluding reconditioning and preparation

48.0

%


48.0

%


0

bps



Parts and service, including reconditioning and preparation

62.4

%


63.4

%


(100)

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.

CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share data)

(Unaudited)


For the Six Months Ended
June 30,


Increase
(Decrease)


%
Change


2019


2018



REVENUE:








New vehicle

$

1,837.0



$

1,785.8



$

51.2



3

%

Used vehicle:








Retail

944.8



906.7



38.1



4

%

Wholesale

98.7



94.8



3.9



4

%

     Total used vehicle

1,043.5



1,001.5



42.0



4

%

Parts and service

442.1



403.8



38.3



9

%

Finance and insurance, net

151.7



141.7



10.0



7

%

TOTAL REVENUE

3,474.3



3,332.8



141.5



4

%

GROSS PROFIT:








New vehicle

76.2



79.2



(3.0)



(4)

%

Used vehicle:








Retail

68.3



65.8



2.5



4

%

Wholesale

2.1



1.8



0.3



17

%

     Total used vehicle

70.4



67.6



2.8



4

%

Parts and service

275.9



254.7



21.2



8

%

Finance and insurance, net

151.7



141.7



10.0



7

%

TOTAL GROSS PROFIT

574.2



543.2



31.0



6

%

OPERATING EXPENSES:








Selling, general and administrative

391.7



374.8



16.9



5

%

Depreciation and amortization

17.6



16.7



0.9



5

%

Other operating expense (income), net

1.2



(1.1)



2.3



NM


INCOME FROM OPERATIONS

163.7



152.8



10.9



7

%

OTHER EXPENSES (INCOME):








Floor plan interest expense

20.7



14.6



6.1



42

%

Other interest expense, net

27.5



26.2



1.3



5

%

Swap interest expense



0.4



(0.4)



(100)

%

Gain on divestiture

(11.7)





(11.7)



NM


Total other expenses, net

36.5



41.2



(4.7)



(11)

%

INCOME BEFORE INCOME TAXES

127.2



111.6



15.6



14

%

Income tax expense

31.4



28.3



3.1



11

%

NET INCOME

$

95.8



$

83.3



$

12.5



15

%

EARNINGS PER COMMON SHARE:








Basic—








Net income

$

4.99



$

4.08



$

0.91



22

%

Diluted—








Net income

$

4.96



$

4.02



$

0.94



23

%

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:








Basic

19.2



20.4



(1.2)



(6)

%

Restricted stock



0.1



(0.1)



(100)

%

Performance share units

0.1



0.2



(0.1)



(50)

%

Diluted

19.3



20.7



(1.4)



(7)

%

______________________________

NMNot Meaningful

 

 

ASBURY AUTOMOTIVE GROUP, INC.

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

(Unaudited)



For the Six Months Ended
June 30,


Increase
(Decrease)


%
Change


2019


2018



Unit sales








New vehicle:








Luxury

10,908



10,842



66



1

%

Import

29,699



29,499



200



1

%

Domestic

9,951



9,387



564



6

%

    Total new vehicle

50,558



49,728



830



2

%

Used vehicle retail

43,342



42,255



1,087



3

%

Used to new ratio

85.7

%


85.0

%


70

bps



Average selling price








New vehicle

$

36,335



$

35,911



$

424



1

%

Used vehicle retail

21,799



21,458



341



2

%

Average gross profit per unit








New vehicle:








Luxury

$

3,511



$

3,588



$

(77)



(2)

%

Import

717



803



(86)



(11)

%

Domestic

1,668



1,768



(100)



(6)

%

Total new vehicle

1,507



1,593



(86)



(5)

%

Used vehicle retail

1,576



1,557



19



1

%

Finance and insurance, net

1,616



1,541



75



5

%

Front end yield (1)

3,154



3,117



37



1

%

Gross margin








New vehicle:








Luxury

6.3

%


6.6

%


(30)

bps



Import

2.6

%


2.8

%


(20)

bps



Domestic

4.2

%


4.5

%


(30)

bps



Total new vehicle

4.1

%


4.4

%


(30)

bps



Used vehicle retail

7.2

%


7.3

%


(10)

bps



Parts and service

62.4

%


63.1

%


(70)

bps



Total gross profit margin

16.5

%


16.3

%


20

bps



SG&A metrics








Rent expense

$

13.6



$

12.6



$

1.0



8

%

Total SG&A as a percentage of gross profit

68.2

%


69.0

%


(80)

bps



SG&A, excluding rent expense as a percentage of gross profit

65.8

%


66.7

%


(90)

bps



Operating metrics








Income from operations as a percentage of revenue

4.7

%


4.6

%


10

bps



Income from operations as a percentage of gross profit

28.5

%


28.1

%


40

bps



Adjusted income from operations as a percentage of revenue

4.8

%


4.6

%


20

bps



Adjusted income from operations as a percentage of gross profit

28.9

%


28.0

%


90

bps



Revenue mix








New vehicle

52.9

%


53.6

%





Used vehicle retail

27.2

%


27.2

%





Used vehicle wholesale

2.8

%


2.8

%





Parts and service

12.7

%


12.1

%





Finance and insurance

4.4

%


4.3

%





     Total revenue

100.0

%


100.0

%





Gross profit mix








New vehicle

13.3

%


14.6

%





Used vehicle retail

11.9

%


12.1

%





Used vehicle wholesale

0.4

%


0.3

%





Parts and service

48.0

%


46.9

%





Finance and insurance

26.4

%


26.1

%





     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 Six Months Ended
June 30,


Increase
(Decrease)


%
Change


2019


2018



Revenue








New vehicle:








Luxury

$

603.6



$

586.0



$

17.6



3

%

Import

809.4



810.0



(0.6)



%

Domestic

342.8



365.7



(22.9)



(6)

%

     Total new vehicle

1,755.8



1,761.7



(5.9)



%

Used Vehicle:








Retail

901.7



890.7



11.0



1

%

Wholesale

95.4



93.2



2.2



2

%

     Total used vehicle

997.1



983.9



13.2



1

%

Parts and service

427.8



398.3



29.5



7

%

Finance and insurance, net

145.0



138.5



6.5



5

%

Total revenue

$

3,325.7



$

3,282.4



$

43.3



1

%









Gross profit








New vehicle:








Luxury

$

38.3



$

38.9



$

(0.6)



(2)

%

Import

20.6



22.9



(2.3)



(10)

%

Domestic

13.7



16.6



(2.9)



(17)

%

     Total new vehicle

72.6



78.4



(5.8)



(7)

%

Used Vehicle:








Retail

64.6



64.8



(0.2)



%

Wholesale

2.1



1.8



0.3



17

%

     Total used vehicle

66.7



66.6



0.1



%

Parts and service:








Customer pay

151.9



143.1



8.8



6

%

Warranty

42.6



36.9



5.7



15

%

Wholesale parts

11.6



11.1



0.5



5

%

     Parts and service, excluding reconditioning and preparation

206.1



191.1



15.0



8

%

Reconditioning and preparation

60.5



60.0



0.5



1

%

Total parts and service

266.6



251.1



15.5



6

%

Finance and insurance

145.0



138.5



6.5



5

%

Total gross profit

$

550.9



$

534.6



$

16.3



3

%









SG&A expense

$

374.8



$

368.1



$

6.7



2

%

SG&A expense as a percentage of gross profit

68.0

%


68.9

%


(90) 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 Six Months Ended
June 30,


Increase
(Decrease)


%
Change


2019


2018



Unit sales








New vehicle:








Luxury

10,869



10,842



27



%

Import

28,789



28,639



150



1

%

Domestic

8,543



9,387



(844)



(9)

%

     Total new vehicle

48,201



48,868



(667)



(1)

%

Used vehicle retail

41,107



41,402



(295)



(1)

%

Used to new ratio

85.3

%


84.7

%


60

bps











Average selling price








New vehicle

$

36,427



$

36,050



$

377



1

%

Used vehicle retail

21,935



21,513



422



2

%









Average gross profit per unit








New vehicle:








Luxury

$

3,524



$

3,588



$

(64)



(2)

%

Import

716



800



(84)



(11)

%

Domestic

1,604



1,768



(164)



(9)

%

Total new vehicle

1,506



1,604



(98)



(6)

%

Used vehicle retail

1,572



1,565



7



%

Finance and insurance, net

1,624



1,534



90



6

%

Front end yield (1)

3,160



3,121



39



1

%









Gross margin








New vehicle:








Luxury

6.3

%


6.6

%


(30)

bps



Import

2.5

%


2.8

%


(30)

bps



Domestic

4.0

%


4.5

%


(50)

bps



Total new vehicle

4.1

%


4.5

%


(40)

bps



Used vehicle retail

7.2

%


7.3

%


(10)

bps



Parts and service:








Parts and service, excluding reconditioning and preparation

48.2

%


48.0

%


20

bps



Parts and service, including reconditioning and preparation

62.3

%


63.0

%


(70)

bps



Total gross profit margin

16.6

%


16.3

%


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)



June 30,
2019


December 31,
2018


Increase

(Decrease)


% Change

SELECTED BALANCE SHEET DATA








Cash and cash equivalents

$

9.6



$

8.3



$

1.3



16

%

New vehicle inventory

895.1



867.2



27.9



3

%

Used vehicle inventory

162.2



158.9



3.3



2

%

Parts inventory

43.5



41.5



2.0



5

%

Total current assets

1,529.5



1,553.0



(23.5)



(2)

%

Floor plan notes payable

918.7



966.1



(47.4)



(5)

%

Total current liabilities

1,272.6



1,303.3



(30.7)



(2)

%









CAPITALIZATION:








Long-term debt (including current portion)

$

909.6



$

905.3



$

4.3



%

Shareholders' equity

556.3



473.2



83.1



18

%

Total

$

1,465.9



$

1,378.5



$

87.4



6

%

 


June 30, 2019


December 31, 2018

DAYS SUPPLY




New vehicle inventory

86



67


Used vehicle inventory

33



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 Six Months Ended
June 30,


2019


2018

Luxury:




Mercedes-Benz

7

%


7

%

Lexus

6

%


6

%

BMW

6

%


5

%

Acura

4

%


4

%

Infiniti

3

%


3

%

Other luxury

7

%


8

%

Total luxury

33

%


33

%

Imports:




Honda

19

%


20

%

Nissan

9

%


11

%

Toyota

12

%


11

%

Other imports

5

%


5

%

Total imports

45

%


47

%

Domestic:




Ford

10

%


10

%

Chevrolet

6

%


5

%

Dodge

3

%


2

%

Other domestics

3

%


3

%

Total domestic

22

%


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


June 30, 2019


March 31, 2019


(Dollars in millions)

Adjusted leverage ratio:




Long-term debt (including current portion)

$

909.6



$

913.4






Calculation of earnings before interest, taxes, depreciation and amortization ("EBITDA"):




Net Income

$

180.5



$

168.8






Add:




Depreciation and amortization

34.7



34.1


Income tax expense

59.8



56.3


Swap and other interest expense

54.4



54.1


Earnings before interest, taxes, depreciation and amortization ("EBITDA")

$

329.4



$

313.3






Non-core items - expense (income):




Gain on divestiture

$

(11.7)



$


Gain on sale of real estate

(0.3)



$


Franchise rights impairment

3.7



3.7


Fixed assets write-off

2.4



2.4


Legal settlements



(0.7)


  Total non-core items

(5.9)



5.4






Adjusted EBITDA

$

323.5



$

318.7






Adjusted leverage ratio

2.8



2.9


 

 


For the Three Months Ended
June 30,


2019


2018


(In millions, except per share data)

Adjusted income from operations:




Income from operations

$

85.9



$

79.6


Gain on sale of real estate

(0.3)




Legal settlements



(0.7)


Adjusted income from operations

$

85.6



$

78.9










Adjusted net income:




Net income

$

54.9



$

43.2






Non-core items - (income) expense:




Gain on divestiture

(11.7)




Gain on sale of real estate

(0.3)




Legal settlements



(0.7)


Income tax on non-core items above

3.0



0.2


Total non-core items

(9.0)



(0.5)


Adjusted net income

$

45.9



$

42.7






Adjusted diluted earnings per share (EPS):




Diluted EPS

$

2.84



$

2.11






Total non-core items

(0.46)



(0.03)


Adjusted diluted EPS

$

2.38



$

2.08






Weighted average common shares outstanding - diluted

19.3



20.5


 


For the Six Months Ended
June 30,


2019


2018


(In millions, except per share data)

Adjusted income from operations:




Income from operations

$

163.7



$

152.8


Gain on sale of real estate

(0.3)




Fixed assets write-off

2.4




Legal settlements



(0.7)


Adjusted income from operations

$

165.8



$

152.1






Adjusted net income:




Net income

$

95.8



$

83.3






Non-core items - (income) expense:




Gain on divestiture

(11.7)




Gain on sale of real estate

(0.3)




Fixed assets write-off

2.4




Legal settlements



(0.7)


Income tax on non-core items above

2.4



0.2


Total non-core items

(7.2)



(0.5)


Adjusted net income

$

88.6



$

82.8






Adjusted diluted earnings per share (EPS):




Diluted EPS

$

4.96



$

4.02






Total non-core items

(0.37)



(0.02)


Adjusted diluted EPS

$

4.59



$

4.0







Weighted average common shares outstanding - diluted

19.3



20.7


 

Cision

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