Asbury Automotive Group Announces Record 2015 Fourth Quarter And Full-Year Financial Results

Record fourth quarter adjusted EPS from continuing operations of $1.31 per diluted share, up 22% over adjusted prior year quarter

Record full year adjusted EPS from continuing operations of $5.57 per diluted share, up 27% over adjusted prior year

04 Feb, 2016, 07:00 ET from Asbury Automotive Group, Inc.

DULUTH, Ga., Feb. 4, 2016 /PRNewswire/ -- Asbury Automotive Group, Inc. (NYSE: ABG), one of the largest automotive retail and service companies in the U.S., today reported adjusted income from continuing operations for the fourth quarter 2015 of $32.8 million, or $1.31 per diluted share, versus adjusted income from continuing operations in the fourth quarter 2014 of $31.4 million, or $1.07 per diluted share, a 22% increase per diluted share. The fourth quarter of 2015 benefited from a favorable tax rate of 37.2% versus 39.0% during the fourth quarter of 2014. Income from continuing operations for the fourth quarter 2015 included a $13.5 million pre-tax gain on divestitures, or $0.34 per diluted share.  Income from continuing operations for the fourth quarter 2014 included a $31.9 million pre-tax loss on extinguishment of long-term debt, or $0.66 per diluted share.  Net income for the fourth quarter 2015 was $41.1 million, or $1.64 per diluted share, compared to $11.8 million, or $0.40 per diluted share in the prior year period.  See attached reconciliation for reported adjustments related to both of these periods.

Fourth Quarter 2015 Operational Highlights (compared to the prior year period):

  • Total revenues increased 9% to $1.6 billion
  • New vehicle revenue up 9%; gross profit down 3%
  • Used vehicle retail revenue up 9%; gross profit was flat
  • Finance and insurance revenue up 13%
  • Parts and service revenue up 8%; gross profit up 9%
  • Total gross profit increased 6%
  • SG&A expense as a percent of gross profit increased 50 basis points to 70.5%
  • Income from operations increased 6%
  • Income from operations as a percentage of revenue was 4.2%

Strategic Highlights:

  • In October 2015, issued an additional $200 million of our 6.0% Senior Subordinated Notes due in 2024
  • Repurchased $44 million of common stock during Q4 and $304 million for the full year 2015
  • Sold two Nissan franchises, one VW franchise, and one Mazda franchise
  • In January 2016, the Board reset our total share repurchase authorization to $300 million

"Asbury is pleased to announce another record fourth quarter," said Craig Monaghan, Asbury's President and Chief Executive Officer. "We continue to execute our two-part strategy: to drive operational excellence and to deploy capital to its highest returns.  In 2015, we acquired dealerships representing over $160 million in annualized revenues, reduced our share count by approximately 13%, and grew income from operations 12%."

"We continued to experience margin pressure on both new and used vehicles in the fourth quarter," said Asbury's Executive Vice President and Chief Operating Officer, David Hult. "Despite this margin pressure, our diversified business model enabled us to deliver same store gross profit growth as parts and service and F&I delivered a combined 8% growth."

For the year ended December 31, 2015, the Company reported adjusted income from continuing operations of $147.0 million, or $5.57 per diluted share, versus adjusted income from continuing operations for the full year 2014 of $131.5 million, or $4.37 per diluted share. See attached reconciliation for reported adjustments related to both of these periods.  Net income for the full year  2015 was $169.2 million, or $6.41 per diluted share, compared to $111.6 million, or $3.71 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 (800) 768-6544 (domestic), or (785) 830-7990 (international); passcode - 312559.  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 - 312559.

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 81 dealership locations, encompassing 99 franchises for the sale and servicing of 28 domestic and foreign brands of new vehicles as of December 31, 2015.  We also operated 25 collision repair centers and 3 stand-alone used vehicle stores as of December 31, 2015. 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, particularly upcoming maturities, 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 December 31,

Increase (Decrease)

% Change

2015

2014

REVENUE:

New vehicle

$

931.8

$

851.8

$

80.0

9

%

Used vehicle:

Retail

407.7

375.0

32.7

9

%

Wholesale

50.0

47.3

2.7

6

%

     Total used vehicle

457.7

422.3

35.4

8

%

Parts and service

185.2

170.7

14.5

8

%

Finance and insurance, net

65.8

58.2

7.6

13

%

TOTAL REVENUE

1,640.5

1,503.0

137.5

9

%

GROSS PROFIT:

New vehicle

50.5

51.9

(1.4)

(3)

%

Used vehicle:

Retail

30.5

30.5

%

Wholesale

(1.1)

(1.4)

0.3

(21)

%

     Total used vehicle

29.4

29.1

0.3

1

%

Parts and service

114.7

105.4

9.3

9

%

Finance and insurance, net

65.8

58.2

7.6

13

%

TOTAL GROSS PROFIT

260.4

244.6

15.8

6

%

OPERATING EXPENSES:

Selling, general and administrative

183.5

171.1

12.4

7

%

Depreciation and amortization

7.5

7.0

0.5

7

%

Other operating (income) expense, net

(0.3)

0.8

(1.1)

(138)

%

INCOME FROM OPERATIONS

69.7

65.7

4.0

6

%

OTHER (INCOME) EXPENSES:

Floor plan interest expense

4.1

3.1

1.0

32

%

Other interest expense, net

12.5

10.7

1.8

17

%

Swap interest expense

1.0

0.5

0.5

100

%

Loss on extinguishment of long-term debt, net

31.9

(31.9)

(100)

%

Gain on divestitures

(13.5)

(13.5)

NM

Total other (income) expenses, net

4.1

46.2

(42.1)

(91)

%

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

65.6

19.5

46.1

236

%

Income tax expense

24.4

7.6

16.8

221

%

INCOME FROM CONTINUING OPERATIONS

41.2

11.9

29.3

246

%

Discontinued operations, net of tax

(0.1)

(0.1)

%

NET INCOME

$

41.1

$

11.8

$

29.3

248

%

EARNINGS PER COMMON SHARE:

Basic—

Continuing operations

$

1.65

$

0.41

$

1.24

302

%

Discontinued operations

%

Net income

$

1.65

$

0.41

$

1.24

302

%

Diluted—

Continuing operations

$

1.65

$

0.41

$

1.24

302

%

Discontinued operations

(0.01)

(0.01)

%

Net income

$

1.64

$

0.40

$

1.24

310

%

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

Basic

24.9

29.0

(4.1)

(14)

%

Restricted stock

0.1

(0.1)

(100)

%

Performance share units

0.1

0.2

(0.1)

(50)

%

Diluted

25.0

29.3

(4.3)

(15)

%

______________________________

NMNot Meaningful

 

 

 

ASBURY AUTOMOTIVE GROUP, INC.

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

(Unaudited)

For the Three Months Ended December 31,

Increase (Decrease)

% Change

2015

2014

Unit sales

New vehicle:

Luxury

6,809

6,984

(175)

(3)

%

Import

14,581

14,039

542

4

%

Domestic

4,770

3,194

1,576

49

%

     Total new vehicle

26,160

24,217

1,943

8

%

Used vehicle retail

19,425

18,205

1,220

7

%

Used to new ratio

74.3

%

75.2

%

(90)

 bps

Average selling price

New vehicle

$

35,619

$

35,174

$

445

1

%

Used vehicle retail

20,988

20,599

389

2

%

Average gross profit per unit

New vehicle:

Luxury

$

3,466

$

3,823

$

(357)

(9)

%

Import

1,228

1,268

(40)

(3)

%

Domestic

1,887

2,317

(430)

(19)

%

     Total new vehicle

1,930

2,143

(213)

(10)

%

Used vehicle

1,570

1,675

(105)

(6)

%

Finance and insurance, net

1,443

1,372

71

5

%

Front end yield (1)

3,220

3,314

(94)

(3)

%

Gross margin

New vehicle:

Luxury

6.7

%

7.4

%

(70)

bps

Import

4.5

%

4.7

%

(20)

bps

Domestic

5.1

%

6.6

%

(150)

bps

     Total new vehicle

5.4

%

6.1

%

(70)

bps

Used vehicle retail

7.5

%

8.1

%

(60)

bps

Parts and service

61.9

%

61.7

%

20

bps

Gross profit margin

15.9

%

16.3

%

(40)

bps

SG&A metrics

Rent expense

$

7.8

$

7.7

$

0.1

1

%

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

67.5

%

66.8

%

70

bps

Total SG&A as a percentage of gross profit

70.5

%

70.0

%

50

bps

Operating metrics

Income from operations as a percentage of revenue

4.2

%

4.4

%

(20)

bps

Income from operations as a percentage of gross profit

26.8

%

26.9

%

(10)

bps

Revenue mix

New vehicle

56.8

%

56.7

%

Used vehicle retail

24.9

%

24.9

%

Used vehicle wholesale

3.0

%

3.1

%

Parts and service

11.3

%

11.4

%

Finance and insurance

4.0

%

3.9

%

     Total revenue

100.0

%

100.0

%

Gross profit mix

New vehicle

19.4

%

21.2

%

Used vehicle retail

11.7

%

12.5

%

Used vehicle wholesale

(0.4)

%

(0.6)

%

Parts and service

44.0

%

43.1

%

Finance and insurance

25.3

%

23.8

%

     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 sales.

 

 

ASBURY AUTOMOTIVE GROUP, INC.

SAME STORE OPERATING HIGHLIGHTS  (In millions)

(Unaudited)

For the Three Months Ended December 31,

Increase (Decrease)

% Change

2015

2014

Revenue

New vehicle:

Luxury

$

353.9

$

348.0

$

5.9

2

%

Import

383.0

358.0

25.0

7

%

Domestic

134.5

112.9

21.6

19

%

     Total new vehicle

871.4

818.9

52.5

6

%

Used Vehicle:

Retail

384.3

361.3

23.0

6

%

Wholesale

47.0

45.1

1.9

4

%

     Total used vehicle

431.3

406.4

24.9

6

%

Parts and service

175.8

163.8

12.0

7

%

Finance and insurance

60.7

55.9

4.8

9

%

Total revenue

$

1,539.2

$

1,445.0

$

94.2

7

%

Gross profit

New vehicle:

Luxury

$

23.6

$

25.7

$

(2.1)

(8)

%

Import

17.0

16.7

0.3

2

%

Domestic

7.0

7.4

(0.4)

(5)

%

     Total new vehicle

47.6

49.8

(2.2)

(4)

%

Used Vehicle:

Retail

28.8

29.6

(0.8)

(3)

%

Wholesale

(0.9)

(1.3)

0.4

31

%

     Total used vehicle

27.9

28.3

(0.4)

(1)

%

Parts and service:

Customer pay

60.0

56.9

3.1

5

%

Reconditioning and preparation

27.3

24.3

3.0

12

%

Warranty

16.5

15.3

1.2

8

%

Wholesale parts

5.0

4.8

0.2

4

%

     Total parts and service

108.8

101.3

7.5

7

%

Finance and insurance

60.7

55.9

4.8

9

%

Total gross profit

$

245.0

$

235.3

$

9.7

4

%

SG&A expense

$

172.9

$

164.5

$

8.4

5

%

SG&A expense as a percentage of gross profit

70.6

%

69.9

%

70

bps

_____________________________

Same store amounts consist of information from dealership for identical months in each comparative period, commencing with the first month we owned the dealership. Additionally, amounts related to divested dealerships are excluded from each comparative period.

 

ASBURY AUTOMOTIVE GROUP, INC.

SAME STORE OPERATING HIGHLIGHTS  (Continued)

(Unaudited)

For the Three Months Ended December 31,

Increase (Decrease)

% Change

2015

2014

Unit sales

New vehicle:

Luxury

6,809

6,751

58

1

%

Import

13,891

13,304

587

4

%

Domestic

3,662

3,194

468

15

%

     Total new vehicle

24,362

23,249

1,113

5

%

Used vehicle retail

18,191

17,511

680

4

%

Used to new ratio

74.7

%

75.3

%

(60)

bps

Average selling price

New vehicle

$

35,769

$

35,223

$

546

2

%

Used vehicle retail

21,126

20,633

493

2

%

Average gross profit per unit

New vehicle:

Luxury

$

3,466

$

3,807

$

(341)

(9)

%

Import

1,224

1,255

(31)

(2)

%

Domestic

1,912

2,317

(405)

(17)

%

     Total new vehicle

1,954

2,142

(188)

(9)

%

Used vehicle

1,583

1,690

(107)

(6)

%

Finance and insurance, net

1,426

1,371

55

4

%

Front end yield (1)

3,222

3,319

(97)

(3)

%

Gross margin

New vehicle:

Luxury

6.7

%

7.4

%

(70)

bps

Import

4.4

%

4.7

%

(30)

bps

Domestic

5.2

%

6.6

%

(140)

bps

     Total new vehicle

5.5

%

6.1

%

(60)

bps

Used vehicle retail

7.5

%

8.2

%

(70)

bps

Parts and service

61.9

%

61.8

%

10

bps

Gross profit margin

15.9

%

16.3

%

(40)

bps

_____________________________

Same store amounts consist of information from dealership 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 sales.

 

ASBURY AUTOMOTIVE GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In millions, except per share data)

(Unaudited)

For the Twelve Months Ended December 31,

Increase (Decrease)

% Change

2015

2014

REVENUE:

New vehicle

$

3,652.5

$

3,230.6

$

421.9

13

%

Used vehicle:

Retail

1,717.5

1,534.9

182.6

12

%

Wholesale

214.2

206.6

7.6

4

%

     Total used vehicle

1,931.7

1,741.5

190.2

11

%

Parts and service

740.7

666.6

74.1

11

%

Finance and insurance, net

263.4

229.0

34.4

15

%

TOTAL REVENUE

6,588.3

5,867.7

720.6

12

%

GROSS PROFIT:

New vehicle

203.0

198.3

4.7

2

%

Used vehicle:

Retail

136.1

130.0

6.1

5

%

Wholesale

(4.3)

(2.3)

(2.0)

87

%

     Total used vehicle

131.8

127.7

4.1

3

%

Parts and service

462.6

412.2

50.4

12

%

Finance and insurance, net

263.4

229.0

34.4

15

%

TOTAL GROSS PROFIT

1,060.8

967.2

93.6

10

%

OPERATING EXPENSES:

Selling, general and administrative

729.9

671.6

58.3

9

%

Depreciation and amortization

29.5

26.4

3.1

12

%

Other operating (income) expense, net

(0.2)

1.0

(1.2)

(120)

%

INCOME FROM OPERATIONS

301.6

268.2

33.4

12

%

OTHER (INCOME) EXPENSES:

Floor plan interest expense

16.1

12.4

3.7

30

%

Other interest expense, net

44.0

38.9

5.1

13

%

Swap interest expense

3.0

2.0

1.0

50

%

Loss on extinguishment of long-term debt, net

31.9

(31.9)

(100)

%

Gain on divestitures

(34.9)

(34.9)

NM

Total other (income) expenses, net

28.2

85.2

(57.0)

(67)

%

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

273.4

183.0

90.4

49

%

Income tax expense

104.0

71.0

33.0

46

%

INCOME FROM CONTINUING OPERATIONS

169.4

112.0

57.4

51

%

Discontinued operations, net of tax

(0.2)

(0.4)

0.2

(50)

%

NET INCOME

$

169.2

$

111.6

$

57.6

52

%

EARNINGS PER COMMON SHARE:

Basic—

Continuing operations

$

6.44

$

3.75

$

2.69

72

%

Discontinued operations

(0.01)

(0.02)

0.01

(50)

%

Net income

$

6.43

$

3.73

$

2.70

72

%

Diluted—

Continuing operations

$

6.42

$

3.72

$

2.70

73

%

Discontinued operations

(0.01)

(0.01)

%

Net income

$

6.41

$

3.71

$

2.70

73

%

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

Basic

26.3

29.9

(3.6)

(12)

%

Restricted stock

0.1

(0.1)

(100)

%

Performance share units

0.1

0.1

%

Diluted

26.4

30.1

(3.7)

(12)

%

______________________________

NMNot Meaningful

 

 

 

ASBURY AUTOMOTIVE GROUP, INC.

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

(Unaudited)

For the Twelve Months Ended December 31,

Increase (Decrease)

% Change

2015

2014

Unit sales

New vehicle:

Luxury

25,441

24,275

1,166

5

%

Import

61,633

57,980

3,653

6

%

Domestic

18,907

13,309

5,598

42

%

     Total new vehicle

105,981

95,564

10,417

11

%

Used vehicle retail

82,589

75,173

7,416

10

%

Used to new ratio

77.9

%

78.7

%

(80)

bps

Average selling price

New vehicle

$

34,464

$

33,806

$

658

2

%

Used vehicle retail

20,796

20,418

378

2

%

Average gross profit per unit

New vehicle:

Luxury

$

3,428

$

3,736

$

(308)

(8)

%

Import

1,254

1,368

(114)

(8)

%

Domestic

2,036

2,126

(90)

(4)

%

     Total new vehicle

1,915

2,075

(160)

(8)

%

Used vehicle

1,648

1,729

(81)

(5)

%

Finance and insurance, net

1,397

1,341

56

4

%

Front end yield (1)

3,195

3,264

(69)

(2)

%

Gross margin

New vehicle:

Luxury

6.7

%

7.3

%

(60)

bps

Import

4.6

%

5.2

%

(60)

bps

Domestic

5.6

%

6.3

%

(70)

bps

     Total new vehicle

5.6

%

6.1

%

(50)

bps

Used vehicle retail

7.9

%

8.5

%

(60)

bps

Parts and service

62.5

%

61.8

%

70

bps

Gross profit margin

16.1

%

16.5

%

(40)

bps

SG&A metrics

Rent expense

$

31.3

$

30.8

$

0.5

2

%

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

65.9

%

66.3

%

(40)

bps

Total SG&A as a percentage of gross profit

68.8

%

69.4

%

(60)

bps

Operating metrics

Income from operations as a percentage of revenue

4.6

%

4.6

%

bps

Income from operations as a percentage of gross profit

28.4

%

27.7

%

70

bps

Revenue mix

New vehicle

55.4

%

55.1

%

Used vehicle retail

26.1

%

26.1

%

Used vehicle wholesale

3.3

%

3.5

%

Parts and service

11.2

%

11.4

%

Finance and insurance

4.0

%

3.9

%

     Total revenue

100.0

%

100.0

%

Gross profit mix

New vehicle

19.1

%

20.5

%

Used vehicle retail

12.9

%

13.4

%

Used vehicle wholesale

(0.4)

%

(0.2)

%

Parts and service

43.6

%

42.6

%

Finance and insurance

24.8

%

23.7

%

     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 sales.

 

 

ASBURY AUTOMOTIVE GROUP, INC.

SAME STORE OPERATING HIGHLIGHTS  (In millions)

(Unaudited)

For the Twelve Months Ended December 31,

Increase (Decrease)

% Change

2015

2014

Revenue

New vehicle:

Luxury

$

1,281.9

$

1,195.7

$

86.2

7

%

Import

1,556.9

1,451.5

105.4

7

%

Domestic

508.1

450.1

58.0

13

%

     Total new vehicle

3,346.9

3,097.3

249.6

8

%

Used Vehicle:

Retail

1,564.9

1,470.2

94.7

6

%

Wholesale

194.7

194.9

(0.2)

%

     Total used vehicle

1,759.6

1,665.1

94.5

6

%

Parts and service

693.8

638.8

55.0

9

%

Finance and insurance

237.8

219.3

18.5

8

%

Total revenue

$

6,038.1

$

5,620.5

$

417.6

7

%

Gross profit

New vehicle:

Luxury

$

86.1

$

87.4

$

(1.3)

(1)

%

Import

72.3

74.9

(2.6)

(3)

%

Domestic

28.9

28.3

0.6

2

%

     Total new vehicle

187.3

190.6

(3.3)

(2)

%

Used Vehicle:

Retail

125.2

124.9

0.3

%

Wholesale

(3.4)

(2.1)

(1.3)

62

%

     Total used vehicle

121.8

122.8

(1.0)

(1)

%

Parts and service:

Customer pay

237.3

225.5

11.8

5

%

Reconditioning and preparation

110.4

97.7

12.7

13

%

Warranty

64.9

52.9

12.0

23

%

Wholesale parts

19.8

19.4

0.4

2

%

     Total parts and service

432.4

395.5

36.9

9

%

Finance and insurance

237.8

219.3

18.5

8

%

Total gross profit

$

979.3

$

928.2

$

51.1

6

%

SG&A expense

$

675.0

$

644.5

$

30.5

5

%

SG&A expense as a percentage of gross profit

68.9

%

69.4

%

(50)

bps

_____________________________

Same store amounts consist of information from dealership for identical months in each comparative period, commencing with the first month we owned the dealership. Additionally, amounts related to divested dealerships are excluded from each comparative period.

 

 

 

ASBURY AUTOMOTIVE GROUP, INC.

SAME STORE OPERATING HIGHLIGHTS  (Continued)

(Unaudited)

For the Twelve Months Ended December 31,

Increase (Decrease)

% Change

2015

2014

Unit sales

New vehicle:

Luxury

25,063

23,418

1,645

7

%

Import

57,562

54,636

2,926

5

%

Domestic

14,162

13,309

853

6

%

     Total new vehicle

96,787

91,363

5,424

6

%

Used vehicle retail

74,715

71,833

2,882

4

%

Used to new ratio

77.2

%

78.6

%

(140)

bps

Average selling price

New vehicle

$

34,580

$

33,901

$

679

2

%

Used vehicle retail

20,945

20,467

478

2

%

Average gross profit per unit

New vehicle:

Luxury

$

3,435

$

3,732

$

(297)

(8)

%

Import

1,256

1,371

(115)

(8)

%

Domestic

2,041

2,126

(85)

(4)

%

     Total new vehicle

1,935

2,086

(151)

(7)

%

Used vehicle

1,676

1,739

(63)

(4)

%

Finance and insurance, net

1,387

1,344

43

3

%

Front end yield (1)

3,209

3,277

(68)

(2)

%

Gross margin

New vehicle:

Luxury

6.7

%

7.3

%

(60)

bps

Import

4.6

%

5.2

%

(60)

bps

Domestic

5.7

%

6.3

%

(60)

bps

     Total new vehicle

5.6

%

6.2

%

(60)

bps

Used vehicle retail

8.0

%

8.5

%

(50)

bps

Parts and service

62.3

%

61.9

%

40

bps

Gross profit margin

16.2

%

16.5

%

(30)

bps

_____________________________

Same store amounts consist of information from dealership 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 sales.

 

 

ASBURY AUTOMOTIVE GROUP, INC.

Additional Disclosures (In millions)

(Unaudited)

December 31, 2015

December 31, 2014

Increase

(Decrease)

% Change

SELECTED BALANCE SHEET DATA

Cash and cash equivalents

$

2.8

$

2.9

$

(0.1)

(3)

%

New vehicle inventory

739.2

699.5

39.7

6

%

Used vehicle inventory

134.1

141.7

(7.6)

(5)

%

Parts inventory

43.9

44.8

(0.9)

(2)

%

Total current assets

1,343.0

1,275.4

67.6

5

%

Floor plan notes payable

712.2

766.8

(54.6)

(7)

%

Total current liabilities

1,007.8

1,039.8

(32.0)

(3)

%

CAPITALIZATION:

Long-term debt (including current portion)

$

954.3

$

697.4

$

256.9

37

%

Shareholders' equity

314.5

444.9

(130.4)

(29)

%

Total

$

1,268.8

$

1,142.3

$

126.5

11

%

 

December 31, 2015

December 31, 2014

DAYS SUPPLY

New vehicle inventory

62

63

Used vehicle inventory

30

35

_____________________________

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 Year Ended December 31,

2015

2014

Luxury:

BMW

8

%

9

%

Mercedes-Benz

7

%

8

%

Lexus

7

%

7

%

Acura

5

%

5

%

Infiniti

3

%

4

%

Other luxury

6

%

5

%

Total luxury

36

%

38

%

Imports:

Honda

16

%

17

%

Nissan

12

%

12

%

Toyota

12

%

13

%

Other imports

6

%

6

%

Total imports

46

%

48

%

Domestic:

Ford

11

%

7

%

Dodge

2

%

2

%

Chevrolet

3

%

2

%

Other domestics

2

%

3

%

Total domestic

18

%

14

%

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 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 are reconciliations for our non-core operating items:

For the Three Months Ended December 31,

2015

2014

(In millions, except per share data)

Adjusted income from continuing operations:

Net income

$

41.1

$

11.8

Discontinued operations, net of tax

0.1

0.1

Income from continuing operations

41.2

11.9

Non-core items - income:

Gain on divestitures (net of $5.1 million of tax)

(8.4)

Loss on extinguishment of long-term debt

31.9

Income tax benefit

(12.4)

Total non-core items

(8.4)

19.5

Adjusted income from continuing operations

$

32.8

$

31.4

Adjusted diluted earnings per share (EPS) from continuing operations:

Net income

$

1.64

$

0.40

Discontinued operations, net of tax

0.01

0.01

Income from continuing operations

$

1.65

$

0.41

Total non-core items

(0.34)

0.66

Adjusted diluted EPS from continuing operations

$

1.31

$

1.07

Weighted average common shares outstanding - diluted

25.0

29.3

 

 

 

For the Twelve Months Ended December 31,

2015

2014

(In millions, except per share data)

Adjusted income from continuing operations:

Net income

$

169.2

$

111.6

Discontinued operations, net of tax

0.2

0.4

Income from continuing operations

169.4

112.0

Non-core items - income:

Gain on divestitures (net of $13.3 million of tax)

(21.6)

Loss on extinguishment of long-term debt

31.9

Income tax benefit

(0.8)

(12.4)

Total non-core items

(22.4)

19.5

Adjusted income from continuing operations

$

147.0

$

131.5

Adjusted diluted earnings per share (EPS) from continuing operations:

Net income

$

6.41

$

3.71

Discontinued operations, net of tax

0.01

0.01

Income from continuing operations

$

6.42

$

3.72

Total non-core items

(0.85)

0.65

Adjusted diluted EPS from continuing operations

$

5.57

$

4.37

Weighted average common shares outstanding - diluted

26.4

30.1

 

 

 

SOURCE Asbury Automotive Group, Inc.



RELATED LINKS

http://www.asburyauto.com