ASBURY AUTOMOTIVE GROUP, INC. DULUTH, Ga., July 26, 2016 /PRNewswire/ -- Asbury Automotive Group, Inc. (NYSE: ABG), one of the largest automotive retail and service companies in the U.S., today reported net income for the second quarter 2016 of $36.7 million, or $1.65 per diluted share, compared to $41.1 million, or $1.52 per diluted share in the prior year quarter, a 9% increase per diluted share. Total revenue for the second quarter was $1.6 billion, down 4% from the prior year period principally attributable to strategic divestitures during the second half of 2015; total revenue on a same store basis was down 1% from the prior year period.
Second Quarter 2016 Operational Summary (compared to the prior year period on a same store basis unless otherwise stated):
-- Total revenues decreased 1%; gross profit up 1%
-- New vehicle revenue down 1%; gross profit down 5%
-- Used vehicle retail revenue down 4%; gross profit up 1%
-- Finance and insurance revenue per vehicle up 3% to $1,436
-- Parts and service revenue up 6%; gross profit up 4%
-- Parts and service customer pay gross profit up 8%
-- SG&A expense as a percentage of gross profit was up 140 basis points to
68.3%
-- Total company income from operations as a percentage of revenue was 4.8%
Strategic Highlights:
-- Repurchased $60 million of common stock in Q2 2016
-- Opened a new Q auto store in the greater Tampa, FL area
"Despite a challenging retail environment, our improved used margins, strong parts and service customer pay performance, and capital deployment enabled us to deliver 9% EPS growth," said Craig Monaghan, Asbury's President and Chief Executive Officer.
"We continue to grow our front end yield, which is up approximately $100 per vehicle from the low in the second quarter of 2015," said Asbury's Executive Vice President and Chief Operating Officer, David Hult. "This was a direct result of our team's strong performance, increasing used vehicle margins and continuing gains in F&I."
For the six-month period ended June 30, 2016, the Company reported net income of $67.7 million, or $2.91 per diluted share, compared to net income of $77.0 million, or $2.82 per diluted share in the prior year period.
The conference call will be today at 10:00 a.m. Eastern Time and will also be simulcast live on the Internet. The simulcast can be accessed by logging onto www.asburyauto.com or www.ccbn.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 (719) 325-2432 (domestic), or (888) 572-7025 (international); passcode - 5689441. 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 - 5689441.
About Asbury Automotive Group, Inc.
Asbury Automotive Group, Inc. ("Asbury"), a Fortune 500 company headquartered in Duluth, Georgia, a suburb of Atlanta, is one of the largest automotive retailers in the U.S. Built through a combination of organic growth and a series of strategic acquisitions, Asbury operated 82 dealership locations, encompassing 99 new vehicle franchises for the sale and servicing of 28 domestic and foreign brands as of June 30, 2016. In addition, we owned and operated three stand-alone used vehicle stores under the "Q auto" brand name in Florida. We also operated 25 collision repair centers in our local markets. Asbury offers customers an extensive range of automotive products and services, including new and used vehicle sales and related financing and insurance, vehicle maintenance and repair services, replacement parts and service contracts.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements other than historical fact, and may include statements relating to goals, plans, market conditions and projections regarding Asbury's financial position, liquidity, results of operations, market position and dealership portfolio, and other initiatives and future business strategy. These statements are based on management's current expectations and beliefs and involve significant risks and uncertainties that may cause results to differ materially from those set forth in the statements. These risks and uncertainties include, among other things, market factors, Asbury's relationships with, and the financial and operational stability of, vehicle manufacturers and other suppliers, acts of God or other incidents which may adversely impact supply from vehicle manufacturers and/or present retail sales challenges, risks associated with Asbury's indebtedness (including available borrowing capacity, compliance with its financial covenants and ability to refinance or repay such indebtedness, on favorable terms), Asbury's relationships with, and the financial stability of, its lenders and lessors, risks related to competition in the automotive retail and service industries, general economic conditions both nationally and locally, governmental regulations, legislation, adverse results in litigation and other proceedings, and Asbury's ability to execute its IT initiatives and other operational strategies, Asbury's ability to leverage gains from its dealership portfolio, Asbury's ability to capitalize on opportunities to repurchase its debt and equity securities or purchase properties that it currently leases, and Asbury's ability to stay within its targeted range for capital expenditures. There can be no guarantees that Asbury's plans for future operations will be successfully implemented or that they will prove to be commercially successful.
These and other risk factors that could cause actual results to differ materially from those expressed or implied in our forward-looking statements are and will be discussed in Asbury's filings with the U.S. Securities and Exchange Commission from time to time, including its most recent annual report on Form 10-K and any subsequently filed quarterly reports on Form 10-Q. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
ASBURY AUTOMOTIVE GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share data)
(Unaudited)
For the Three Months Ended Increase %
June 30, (Decrease) Change
-------- --------- ------
2016 2015
---- ----
REVENUE:
New vehicle $897.0 $926.2 $(29.2) (3)%
Used vehicle:
Retail 418.3 451.8 (33.5) (7)%
Wholesale 51.9 55.8 (3.9) (7)%
---- ----
Total used vehicle 470.2 507.6 (37.4) (7)%
Parts and service 195.3 188.2 7.1 4%
Finance and insurance, net 64.9 67.6 (2.7) (4)%
---- ----
TOTAL REVENUE 1,627.4 1,689.6 (62.2) (4)%
GROSS PROFIT:
New vehicle 47.5 50.6 (3.1) (6)%
Used vehicle:
Retail 34.8 35.0 (0.2) (1)%
Wholesale (0.6) (1.3) 0.7 54%
Total used vehicle 34.2 33.7 0.5 1%
Parts and service 121.0 119.4 1.6 1%
Finance and insurance, net 64.9 67.6 (2.7) (4)%
---- ----
TOTAL GROSS PROFIT 267.6 271.3 (3.7) (1)%
OPERATING EXPENSES (INCOME):
Selling, general and administrative 182.3 181.9 0.4 - %
Depreciation and amortization 7.7 7.2 0.5 7%
Other operating income, net (0.5) - (0.5) - %
---- ---
INCOME FROM OPERATIONS 78.1 82.2 (4.1) (5)%
OTHER EXPENSES:
Floor plan interest expense 5.0 4.0 1.0 25%
Other interest expense, net 13.4 10.5 2.9 28%
Swap interest expense 0.8 0.5 0.3 60%
Total other expenses, net 19.2 15.0 4.2 28%
---- ----
INCOME FROM CONTINUING OPERATIONS 58.9 67.2 (8.3) (12)%
BEFORE INCOME TAXES
Income tax expense 22.3 26.1 (3.8) (15)%
---- ----
INCOME FROM CONTINUING OPERATIONS 36.6 41.1 (4.5) (11)%
Discontinued operations, net of tax 0.1 - 0.1 - %
--- ---
NET INCOME $36.7 $41.1 $(4.4) (11)%
===== =====
EARNINGS PER COMMON SHARE:
Basic-
Continuing operations $1.66 $1.53 $0.13 8%
Discontinued operations - - - - %
--- ---
Net income $1.66 $1.53 $0.13 8%
===== =====
Diluted-
Continuing operations $1.65 $1.52 $0.13 9%
Discontinued operations - - - - %
--- ---
Net income $1.65 $1.52 $0.13 9%
===== =====
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic 22.1 26.8 (4.7) (18)%
Restricted stock - 0.1 (0.1) (100)%
Performance share units 0.1 0.1 - - %
--- ---
Diluted 22.2 27.0 (4.8) (18)%
==== ====
______________________________
NM-Not Meaningful
ASBURY AUTOMOTIVE GROUP, INC.
KEY OPERATING HIGHLIGHTS (In millions, except per unit data)
(Unaudited)
For the Three Months Ended Increase %
June 30, (Decrease) Change
-------- --------- ------
2016 2015
---- ----
Unit sales
----------
New vehicle:
Luxury 5,782 6,366 (584) (9)%
Import 14,808 16,574 (1,766) (11)%
Domestic 5,175 4,459 716 16%
----- -----
Total new vehicle 25,765 27,399 (1,634) (6)%
Used vehicle retail 19,612 21,391 (1,779) (8)%
Used to new ratio 76.1% 78.1% (200) bps
Average selling price
---------------------
New vehicle $34,815 $33,804 $1,011 3%
Used vehicle retail 21,329 21,121 208 1%
Average gross profit per unit
-----------------------------
New vehicle:
Luxury $3,615 $3,346 $269 8%
Import 1,189 1,237 (48) (4)%
Domestic 1,739 1,974 (235) (12)%
Total new vehicle 1,844 1,847 (3) - %
Used vehicle 1,774 1,636 138 8%
Finance and insurance, net 1,430 1,386 44 3%
Front end yield (1) 3,244 3,140 104 3%
Gross margin
------------
New vehicle:
Luxury 6.9% 6.6% 30 bps
Import 4.3% 4.6% (30) bps
Domestic 4.8% 5.6% (80) bps
--- ---
Total new vehicle 5.3% 5.5% (20) bps
Used vehicle retail 8.3% 7.7% 60 bps
Parts and service 62.0% 63.4% (140) bps
Gross profit margin 16.4% 16.1% 30 bps
==== ====
SG&A metrics
------------
Rent expense $7.6 $7.8 $(0.2) (3)%
Total SG&A as a percentage of gross profit 68.1% 67.0% 110 bps
SG&A, excluding rent expense as a percent of gross profit 65.3% 64.2% 110 bps
Operating metrics
-----------------
Income from operations as a percentage of revenue 4.8% 4.9% (10) bps
Income from operations as a percentage of gross profit 29.2% 30.3% (110) bps
Revenue mix
-----------
New vehicle 55.1% 54.8%
Used vehicle retail 25.7% 26.8%
Used vehicle wholesale 3.2% 3.3%
Parts and service 12.0% 11.1%
Finance and insurance 4.0% 4.0%
--- ---
Total revenue 100.0% 100.0%
===== =====
Gross profit mix
----------------
New vehicle 17.8% 18.7%
Used vehicle retail 12.9% 12.9%
Used vehicle wholesale (0.2)% (0.5)%
Parts and service 45.2% 44.0%
Finance and insurance 24.3% 24.9%
---- ----
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 Increase %
June 30, (Decrease) Change
-------- --------- ------
2016 2015
---- ----
Revenue
-------
New vehicle:
Luxury $300.9 $312.8 $(11.9) (4)%
Import 403.0 421.2 (18.2) (4)%
Domestic 175.1 157.4 17.7 11%
----- -----
Total new vehicle 879.0 891.4 (12.4) (1)%
Used Vehicle:
Retail 411.8 429.3 (17.5) (4)%
Wholesale 51.4 52.6 (1.2) (2)%
---- ----
Total used vehicle 463.2 481.9 (18.7) (4)%
Parts and service 192.2 180.6 11.6 6%
Finance and insurance 63.9 65.0 (1.1) (2)%
---- ----
Total revenue $1,598.3 $1,618.9 $(20.6) (1)%
======== ========
Gross profit
------------
New vehicle:
Luxury $20.9 $20.8 $0.1 - %
Import 17.4 19.2 (1.8) (9)%
Domestic 8.1 8.8 (0.7) (8)%
--- ---
Total new vehicle 46.4 48.8 (2.4) (5)%
Used Vehicle:
Retail 34.1 33.6 0.5 1%
Wholesale (0.6) (1.2) 0.6 50%
---- ----
Total used vehicle 33.5 32.4 1.1 3%
Parts and service:
Customer pay 67.6 62.7 4.9 8%
Warranty 16.7 16.9 (0.2) (1)%
Wholesale parts 5.1 5.1 - - %
--- ---
Parts and service, excluding reconditioning and preparation 89.4 84.7 4.7 6%
Reconditioning and preparation 29.8 29.7 0.1 - %
Total parts and service 119.2 114.4 4.8 4%
Finance and insurance 63.9 65.0 (1.1) (2)%
---- ----
Total gross profit $263.0 $260.6 $2.4 1%
====== ======
SG&A expense $179.6 $174.3 $5.3 3%
====== ======
SG&A expense as a percentage of gross profit 68.3% 66.9% 140 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 Increase %
June 30, (Decrease) Change
-------- --------- ------
2016 2015
---- ----
Unit sales
----------
New vehicle:
Luxury 5,782 6,179 (397) (6)%
Import 14,678 15,680 (1,002) (6)%
Domestic 4,763 4,459 304 7%
----- -----
Total new vehicle 25,223 26,318 (1,095) (4)%
Used vehicle retail 19,272 20,301 (1,029) (5)%
Used to new ratio 76.4% 77.1% (70) bps
Average selling price
---------------------
New vehicle $34,849 $33,870 $979 3%
Used vehicle retail 21,368 21,147 221 1%
Average gross profit per unit
-----------------------------
New vehicle:
Luxury $3,615 $3,366 $249 7%
Import 1,185 1,224 (39) (3)%
Domestic 1,701 1,974 (273) (14)%
Total new vehicle 1,840 1,854 (14) (1)%
Used vehicle 1,769 1,655 114 7%
Finance and insurance, net 1,436 1,394 42 3%
Front end yield (1) 3,245 3,162 83 3%
Gross margin
------------
New vehicle:
Luxury 6.9% 6.6% 30 bps
Import 4.3% 4.6% (30) bps
Domestic 4.6% 5.6% (100) bps
--- ---
Total new vehicle 5.3% 5.5% (20) bps
Used vehicle retail 8.3% 7.8% 50 bps
Parts and service:
Parts and service, excluding reconditioning and preparation 46.5% 46.9% (40) bps
Parts and service, including reconditioning and preparation 62.0% 63.3% (130) bps
Gross profit margin 14.6% 14.3% 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.
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
(Unaudited)
For the Six Months Ended Increase %
June 30, (Decrease) Change
-------- --------- ------
2016 2015
---- ----
REVENUE:
New vehicle $1,735.4 $1,756.7 $(21.3) (1)%
Used vehicle:
Retail 831.4 871.0 (39.6) (5)%
Wholesale 99.7 110.0 (10.3) (9)%
Total used vehicle 931.1 981.0 (49.9) (5)%
Parts and service 384.5 364.9 19.6 5%
Finance and insurance, net 127.2 128.8 (1.6) (1)%
----- -----
TOTAL REVENUE 3,178.2 3,231.4 (53.2) (2)%
GROSS PROFIT:
New vehicle 92.2 100.2 (8.0) (8)%
Used vehicle:
Retail 69.5 70.4 (0.9) (1)%
Wholesale 0.5 (1.4) 1.9 NM
Total used vehicle 70.0 69.0 1.0 1%
Parts and service 239.0 229.7 9.3 4%
Finance and insurance, net 127.2 128.8 (1.6) (1)%
----- -----
TOTAL GROSS PROFIT 528.4 527.7 0.7 - %
OPERATING EXPENSES:
Selling, general and administrative 363.5 357.6 5.9 2%
Depreciation and amortization 15.2 14.5 0.7 5%
Other operating expense, net 2.7 0.3 2.4 NM
--- ---
INCOME FROM OPERATIONS 147.0 155.3 (8.3) (5)%
OTHER EXPENSES:
Floor plan interest expense 9.4 7.9 1.5 19%
Other interest expense, net 26.8 20.8 6.0 29%
Swap interest expense 1.6 1.0 0.6 60%
Total other expenses, net 37.8 29.7 8.1 27%
---- ----
INCOME FROM CONTINUING OPERATIONS 109.2 125.6 (16.4) (13)%
BEFORE INCOME TAXES
Income tax expense 41.5 48.6 (7.1) (15)%
---- ----
INCOME FROM CONTINUING OPERATIONS 67.7 77.0 (9.3) (12)%
Discontinued operations, net of tax - - - - %
--- ---
NET INCOME $67.7 $77.0 $(9.3) (12)%
===== =====
EARNINGS PER COMMON SHARE:
Basic-
Continuing operations $2.92 $2.84 $0.08 3%
Discontinued operations - - - - %
--- ---
Net income $2.92 $2.84 $0.08 3%
===== =====
Diluted-
Continuing operations $2.91 $2.82 $0.09 3%
Discontinued operations - - - - %
--- ---
Net income $2.91 $2.82 $0.09 3%
===== =====
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic 23.2 27.1 (3.9) (14)%
Restricted stock - 0.1 (0.1) (100)%
Performance share units 0.1 0.1 - - %
--- ---
Diluted 23.3 27.3 (4.0) (15)%
==== ====
______________________________
NM-Not Meaningful
ASBURY AUTOMOTIVE GROUP, INC.
KEY OPERATING HIGHLIGHTS (In millions, except per unit data)
(Unaudited)
For the Six Months Ended Increase %
June 30, (Decrease) Change
-------- --------- ------
2016 2015
---- ----
Unit sales
----------
New vehicle:
Luxury 11,408 12,251 (843) (7)%
Import 28,292 30,551 (2,259) (7)%
Domestic 10,094 8,655 1,439 17%
------ -----
Total new vehicle 49,794 51,457 (1,663) (3)%
Used vehicle retail 39,348 41,858 (2,510) (6)%
Used to new ratio 79.0% 81.3% (230) bps
Average selling price
---------------------
New vehicle $34,852 $34,139 $713 2%
Used vehicle retail 21,129 20,808 321 2%
Average gross profit per unit
-----------------------------
New vehicle:
Luxury $3,559 $3,526 $33 1%
Import 1,223 1,273 (50) (4)%
Domestic 1,684 2,091 (407) (19)%
Total new vehicle 1,852 1,947 (95) (5)%
Used vehicle 1,766 1,682 84 5%
Finance and insurance, net 1,427 1,380 47 3%
Front end yield (1) 3,241 3,208 33 1%
Gross margin
------------
New vehicle:
Luxury 6.9% 6.9% - bps
Import 4.4% 4.7% (30) bps
Domestic 4.7% 5.9% (120) bps
--- ---
Total new vehicle 5.3% 5.7% (40) bps
Used vehicle retail 8.4% 8.1% 30 bps
Parts and service 62.2% 62.9% (70) bps
Gross profit margin 16.6% 16.3% 30 bps
==== ====
SG&A metrics
------------
Rent expense $15.4 $15.5 $(0.1) (1)%
Total SG&A as a percentage of gross profit 68.8% 67.8% 100 bps
SG&A, excluding rent expense as a percent of gross profit 65.9% 64.8% 110 bps
Operating metrics
-----------------
Income from operations as a percentage of revenue 4.6% 4.8% (20) bps
Income from operations as a percentage of gross profit 27.8% 29.4% (160) bps
Adjusted income from operations as a percentage of revenue 4.7% 4.8% (10) bps
Adjusted income from operations as a percentage of gross profit 28.5% 29.4% (90) bps
Revenue mix
-----------
New vehicle 54.6% 54.4%
Used vehicle retail 26.2% 26.9%
Used vehicle wholesale 3.1% 3.4%
Parts and service 12.1% 11.3%
Finance and insurance 4.0% 4.0%
--- ---
Total revenue 100.0% 100.0%
===== =====
Gross profit mix
----------------
New vehicle 17.4% 19.0%
Used vehicle retail 13.2% 13.4%
Used vehicle wholesale 0.1% (0.3)%
Parts and service 45.2% 43.5%
Finance and insurance 24.1% 24.4%
---- ----
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 Six Months Ended Increase %
June 30, (Decrease) Change
-------- --------- ------
2016 2015
---- ----
Revenue
-------
New vehicle:
Luxury $591.5 $606.3 $(14.8) (2)%
Import 765.5 780.6 (15.1) (2)%
Domestic 334.6 307.3 27.3 9%
----- -----
Total new vehicle 1,691.6 1,694.2 (2.6) - %
Used Vehicle:
Retail 814.3 828.8 (14.5) (2)%
Wholesale 98.3 104.7 (6.4) (6)%
---- -----
Total used vehicle 912.6 933.5 (20.9) (2)%
Parts and service 376.6 350.1 26.5 8%
Finance and insurance 124.2 124.1 0.1 - %
----- -----
Total revenue $3,105.0 $3,101.9 $3.1 - %
======== ========
Gross profit
------------
New vehicle:
Luxury $40.6 $42.1 $(1.5) (4)%
Import 34.0 37.0 (3.0) (8)%
Domestic 15.0 18.1 (3.1) (17)%
---- ----
Total new vehicle 89.6 97.2 (7.6) (8)%
Used Vehicle:
Retail 67.9 67.5 0.4 1%
Wholesale 0.6 (1.2) 1.8 NM
--- ----
Total used vehicle 68.5 66.3 2.2 3%
Parts and service:
Customer pay 132.4 121.0 11.4 9%
Warranty 33.3 32.3 1.0 3%
Wholesale parts 10.3 10.1 0.2 2%
---- ----
Parts and service, excluding reconditioning and preparation 176.0 163.4 12.6 8%
Reconditioning and preparation 58.1 57.1 1.0 2%
---- ----
Total parts and service 234.1 220.5 13.6 6%
Finance and insurance 124.2 124.1 0.1 - %
----- -----
Total gross profit $516.4 $508.1 $8.3 2%
====== ======
SG&A expense $356.0 $342.7 $13.3 4%
====== ======
SG&A expense as a percentage of gross profit 68.9% 67.4% 150 bps
==== ====
_____________________________
NM-Not Meaningful
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 Increase %
June 30, (Decrease) Change
-------- --------- ------
2016 2015
---- ----
Unit sales
----------
New vehicle:
Luxury 11,408 11,883 (475) (4)%
Import 27,822 28,995 (1,173) (4)%
Domestic 9,182 8,655 527 6%
----- -----
Total new vehicle 48,412 49,533 (1,121) (2)%
Used vehicle retail 38,358 39,737 (1,379) (3)%
Used to new ratio 79.2% 80.2% (100) bps
Average selling price
---------------------
New vehicle $34,942 $34,203 $739 2%
Used vehicle retail 21,229 20,857 372 2%
Average gross profit per unit
-----------------------------
New vehicle:
Luxury $3,559 $3,543 $16 - %
Import 1,222 1,276 (54) (4)%
Domestic 1,634 2,091 (457) (22)%
Total new vehicle 1,851 1,962 (111) (6)%
Used vehicle 1,770 1,699 71 4%
Finance and insurance, net 1,431 1,390 41 3%
Front end yield (1) 3,247 3,235 12 - %
Gross margin
------------
New vehicle:
Luxury 6.9% 6.9% - bps
Import 4.4% 4.7% (30) bps
Domestic 4.5% 5.9% (140) bps
--- ---
Total new vehicle 5.3% 5.7% (40) bps
Used vehicle retail 8.3% 8.1% 20 bps
Parts and service:
Parts and service, excluding reconditioning and preparation 46.7% 46.7% - bps
Parts and service, including reconditioning and preparation 62.2% 63.0% (80) bps
Gross profit margin 16.6% 16.4% 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.
Additional Disclosures (In millions)
(Unaudited)
June 30, December 31, Increase % Change
2016 2015
(Decrease)
---
SELECTED BALANCE SHEET DATA
Cash and cash equivalents $1.8 $2.8 $(1.0) (36)%
New vehicle inventory 786.0 739.2 46.8 6%
Used vehicle inventory 159.0 134.1 24.9 19%
Parts inventory 44.5 43.9 0.6 1%
Total current assets 1,379.5 1,343.0 36.5 3%
Floor plan notes payable 883.6 712.2 171.4 24%
Total current liabilities 1,173.9 1,007.8 166.1 16%
CAPITALIZATION:
Long-term debt (including current portion) $942.5 $954.3 $(11.8) (1)%
Shareholders' equity 219.6 314.5 (94.9) (30)%
----- -----
Total $1,162.1 $1,268.8 $(106.7) (8)%
======== ========
June
30, December 31,
2016 2015
---- ----
DAYS SUPPLY
New vehicle
inventory 83 62
Used
vehicle
inventory 38 30
_____________________________
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,
---------------------------------
2016 2015
---- ----
Luxury:
BMW 7% 8%
Mercedes-Benz 7% 7%
Lexus 7% 6%
Acura 4% 5%
Infiniti 3% 3%
Other luxury 6% 7%
--- ---
Total luxury 34% 36%
Imports:
Honda 17% 16%
Nissan 10% 13%
Toyota 12% 12%
Other imports 6% 6%
--- ---
Total imports 45% 47%
Domestic:
Ford 14% 10%
Dodge 2% 3%
Chevrolet 2% 2%
Other domestics 3% 2%
--- ---
Total domestic 21% 17%
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 income from continuing operations," and "Adjusted diluted earnings per share ("EPS") from continuing operations." 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, 2016 March 31, 2016
------------- --------------
(Dollars in millions)
Adjusted leverage ratio:
------------------------
Long-term debt (including current portion) $942.5 $946.2
Calculation of earnings before interest, taxes, depreciation and amortization ("EBITDA"):
Income from continuing operations $160.1 $164.6
Add:
Depreciation and amortization 30.1 29.7
Income tax expense 96.9 100.6
Swap and other interest expense 53.6 50.5
---- ----
Earnings before interest, taxes, depreciation and amortization $340.7 $345.4
("EBITDA")
Non-core items - (income) expense:
Real estate-related charges $3.4 $3.4
Gain on divestitures (34.9) (34.9)
Total non-core items (31.5) (31.5)
Adjusted EBITDA $309.2 $313.9
====== ======
Adjusted leverage ratio 3.0 3.0
=== ===
For the Six Months Ended June 30,
---------------------------------
2016 2015
---- ----
(In millions, except per share
data)
Adjusted income from
operations:
--------------------
Income from operations $147.0 $155.3
Real estate-related
charges 3.4 -
Adjusted income from
operations $150.4 $155.3
====== ======
Adjusted income from
continuing operations:
-----------------------
Net income $67.7 $77.0
Discontinued
operations, net of tax - -
--- ---
Income from continuing
operations 67.7 77.0
Non-core items -
(income) expense:
Real estate-related
charges 3.4 -
Income tax benefit (1.3) -
---- ---
Total non-core items 2.1 -
Adjusted income from
continuing operations $69.8 $77.0
===== =====
Adjusted diluted
earnings per share
(EPS) from continuing
operations:
----------------------
Net income $2.91 $2.82
Discontinued
operations, net of tax - -
--- ---
Income from continuing
operations $2.91 $2.82
Total non-core items 0.09 -
---- ---
Adjusted diluted EPS
from continuing
operations $3.00 $2.82
===== =====
Weighted average common
shares outstanding -
diluted 23.3 27.3
==== ====
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/asbury-automotive-group-announces-second-quarter-2016-earnings-300303665.html
SOURCE Asbury Automotive Group, Inc.
