Asbury Automotive Group Reports Second Quarter 2010 Financial Results
Diluted EPS from continuing operations of $0.42 compared to $0.20 in the prior year period
Total revenues up 13% over the prior year period
SG&A as a percentage of gross profit of 76.5% improved 400 basis points over the prior year period
DULUTH, Ga., July 27 /PRNewswire-FirstCall/ -- Asbury Automotive Group, Inc. (NYSE: ABG), one of the largest automotive retail and service companies in the U.S., today reported income from continuing operations for the second quarter 2010 of $13.7 million, or $0.42 per diluted share, versus income from continuing operations of $6.6 million, or $0.20 per diluted share, in the corresponding period last year. Last year's results included a charge of $1.2 million, net of taxes, of non-core items in SG&A, or $0.04 per diluted share. The increase was primarily the result of 13% growth in revenues and gross profit from new and used light vehicle sales and finance and insurance ("F&I") as well as benefits achieved from the Company's leaner cost structure. Net income for the second quarter 2010 totaled $12.8 million, or $0.39 per diluted share, compared with $5.5 million, or $0.17 per diluted share, in the prior year period.
Second quarter 2010 revenues totaled $1.1 billion, an increase of 13% compared to the prior year. This improvement was driven by increases of 14% in new vehicle revenue, 18% in used vehicle revenue, and 35% in F&I revenues. Gross profit increased 13% and was up in all major areas of the business.
For the six-month period ended June 30, 2010, the Company reported income from continuing operations of $22.7 million, or $0.69 per diluted share, compared to $9.2 million, or $0.28 per diluted share in the prior year period. Last year's results included a net charge of $1.2 million, net of taxes, of non-core items in SG&A, or $0.04 per diluted share. The Company's revenues totaled $2.0 billion, an increase of 15% compared to $1.8 billion in the prior year period. Net income for the six-month period ended June 30, 2010 was $20.2 million, or $0.62 per diluted share compared to $5.8 million or $0.18 per diluted share for the prior year period.
"I am thrilled to report another quarter of consistent improvement in Asbury's performance. The increased sales and profitability resulted in second quarter income from continuing operations of 42 cents per diluted share versus 20 cents per diluted share a year ago. Gross profit increased across all four of our business lines in the second quarter," said Charles R. Oglesby, Asbury's President and CEO. "In addition, we decreased SG&A as a percent of gross profit by 400 basis points."
Craig T. Monaghan, Asbury's Senior Vice President and Chief Financial Officer, stated, "To better support our improving operating performance, we continue to pursue process improvement initiatives to deliver sustainable growth. Our financial position continues to improve and, we believe, provides us with the flexibility we need going forward."
Mr. Oglesby concluded, "While the pace of economic recovery remains uncertain, we have delivered consistent earnings growth. This is a result of Asbury's rapid response in better aligning its cost structure, as well as the continuing cost discipline our employees are demonstrating while capturing our share of an improved market."
Asbury will host a conference call to discuss its second quarter results this morning at 10:00 a.m. Eastern Time. The call will be simulcast live on the Internet and can be accessed by logging onto http://www.asburyauto.com or http://www.ccbn.com. In addition, a live audio of the call will be accessible to the public by calling (888) 632-5017 (domestic), or (913) 981-4912 (international); passcode – 3479884. Callers should dial in approximately 5 to 10 minutes before the call begins.
About Asbury Automotive Group
Asbury Automotive Group, Inc. ("Asbury"), headquartered in Duluth, Georgia, a suburb of Atlanta, is one of the largest automobile retailers in the U.S. Built through a combination of organic growth and a series of strategic acquisitions, Asbury currently operates 80 retail auto stores, encompassing 107 franchises for the sale and servicing of 38 different brands of American, European and Asian automobiles. 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, the benefits of its restructuring program 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 stability of, vehicle manufacturers and other suppliers, risks associated with Asbury's indebtedness (including available borrowing capacity and compliance with its financial covenants), 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 and Asbury's ability to execute its restructuring programs and 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 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 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. |
||||||
For the Three Months |
For the Six Months |
|||||
2010 |
2009 |
2010 |
2009 |
|||
REVENUES: |
||||||
New vehicle |
$587.7 |
$514.7 |
$1,118.6 |
$949.7 |
||
Used vehicle |
285.9 |
241.3 |
539.7 |
450.4 |
||
Parts and service |
157.7 |
158.3 |
310.8 |
317.5 |
||
Finance and insurance, net |
30.4 |
22.5 |
56.5 |
43.1 |
||
Total revenues |
1,061.7 |
936.8 |
2,025.6 |
1,760.7 |
||
COST OF SALES: |
||||||
New vehicle |
548.9 |
480.3 |
1,043.8 |
888.0 |
||
Used vehicle |
261.7 |
221.3 |
492.8 |
410.7 |
||
Parts and service |
75.2 |
79.8 |
149.6 |
160.7 |
||
Total cost of sales |
885.8 |
781.4 |
1,686.2 |
1,459.4 |
||
GROSS PROFIT |
175.9 |
155.4 |
339.4 |
301.3 |
||
OPERATING EXPENSES: |
||||||
Selling, general and administrative |
134.6 |
125.1 |
264.2 |
246.3 |
||
Depreciation and amortization |
5.6 |
5.9 |
11.3 |
11.8 |
||
Other operating income, net |
(0.4) |
(0.4) |
(0.8) |
(0.8) |
||
Income from operations |
36.1 |
24.8 |
64.7 |
44.0 |
||
OTHER EXPENSE: |
||||||
Floor plan interest expense |
(4.0) |
(4.6) |
(8.1) |
(9.5) |
||
Other interest expense |
(9.5) |
(9.1) |
(18.9) |
(19.0) |
||
Convertible debt discount amortization |
(0.4) |
(0.5) |
(0.8) |
(0.9) |
||
Interest income |
0.1 |
0.1 |
0.1 |
0.1 |
||
Total other expense, net |
(13.8) |
(14.1) |
(27.7) |
(29.3) |
||
Income before income taxes |
22.3 |
10.7 |
37.0 |
14.7 |
||
INCOME TAX EXPENSE |
8.6 |
4.1 |
14.3 |
5.5 |
||
INCOME FROM CONTINUING OPERATIONS |
13.7 |
6.6 |
22.7 |
9.2 |
||
DISCONTINUED OPERATIONS, net of tax |
(0.9) |
(1.1) |
(2.5) |
(3.4) |
||
NET INCOME |
$12.8 |
$5.5 |
$20.2 |
$5.8 |
||
EARNINGS PER COMMON SHARE: |
||||||
Basic-- |
||||||
Continuing operations |
$0.43 |
$0.20 |
$0.70 |
$0.29 |
||
Discontinued operations |
(0.03) |
(0.03) |
(0.07) |
(0.11) |
||
Net income |
$0.40 |
$0.17 |
$0.63 |
$0.18 |
||
Diluted-- |
||||||
Continuing operations |
$0.42 |
$0.20 |
$0.69 |
$0.28 |
||
Discontinued operations |
(0.03) |
(0.03) |
(0.07) |
(0.10) |
||
Net income |
$0.39 |
$0.17 |
$0.62 |
$0.18 |
||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: |
||||||
Basic |
32.2 |
32.2 |
32.2 |
32.1 |
||
Stock options |
0.5 |
0.7 |
0.5 |
0.4 |
||
Restricted stock |
0.2 |
0.2 |
0.1 |
0.4 |
||
Performance share units |
0.1 |
0.1 |
- |
0.1 |
||
Diluted |
33.0 |
33.2 |
32.8 |
33.0 |
||
New Vehicle-- |
|||||
For the Three Months Ended |
Increase |
% |
|||
2010 |
2009 |
||||
(Dollars in millions) |
|||||
Revenue: |
|||||
New vehicle revenue—same store(1) |
|||||
Luxury |
$197.7 |
$166.1 |
$31.6 |
19% |
|
Mid-line import |
270.5 |
244.9 |
25.6 |
10% |
|
Mid-line domestic |
79.2 |
64.5 |
14.7 |
23% |
|
Value |
8.4 |
4.6 |
3.8 |
83% |
|
Total new light vehicle revenue—same store(1) |
555.8 |
480.1 |
75.7 |
16% |
|
Heavy truck |
31.9 |
34.6 |
(2.7) |
(8%) |
|
Total new vehicle revenue—same store(1) |
587.7 |
514.7 |
73.0 |
14% |
|
New vehicle revenue—acquisitions |
— |
— |
|||
Total new vehicle revenue, as reported |
$587.7 |
$514.7 |
$73.0 |
14% |
|
Gross profit: |
|||||
New vehicle gross profit—same store(1) |
|||||
Luxury |
$15.0 |
$12.1 |
$2.9 |
24% |
|
Mid-line import |
16.2 |
16.6 |
(0.4) |
(2%) |
|
Mid-line domestic |
5.9 |
4.0 |
1.9 |
48% |
|
Value |
0.3 |
0.3 |
— |
— % |
|
Total new light vehicle gross profit—same store(1) |
37.4 |
33.0 |
4.4 |
13% |
|
Heavy truck |
1.4 |
1.4 |
— |
—% |
|
Total new vehicle gross profit—same store(1) |
38.8 |
34.4 |
4.4 |
13% |
|
New vehicle gross profit—acquisitions |
— |
— |
|||
Total new vehicle gross profit, as reported |
$38.8 |
$34.4 |
$4.4 |
13% |
|
For the Three Months Ended |
Increase |
% |
|||
2010 |
2009 |
||||
New vehicle units: |
|||||
New vehicle retail units—same store(1) |
|||||
Luxury |
4,081 |
3,569 |
512 |
14% |
|
Mid-line import |
10,730 |
9,831 |
899 |
9% |
|
Mid-line domestic |
2,051 |
1,884 |
167 |
9% |
|
Value |
401 |
219 |
182 |
83% |
|
Total new light vehicle retail units—same store(1) |
17,263 |
15,503 |
1,760 |
11% |
|
Fleet vehicles |
803 |
741 |
62 |
8% |
|
Total new light vehicle units—same store(1) |
18,066 |
16,244 |
1,822 |
11% |
|
Heavy truck |
651 |
508 |
143 |
28% |
|
Total new vehicle units—same store(1) |
18,717 |
16,752 |
1,965 |
12% |
|
Total new vehicle units—acquisitions |
— |
— |
|||
New vehicle units—actual |
18,717 |
16,752 |
1,965 |
12% |
|
Total new light vehicle units—same store(1) |
18,066 |
16,244 |
1,822 |
11% |
|
Total new light vehicle units—acquisitions |
— |
— |
|||
Total new light vehicle units |
18,066 |
16,244 |
1,822 |
11% |
|
New Vehicle Metrics-- |
|||||
For the Three Months Ended |
Increase |
% |
|||
2010 |
2009 |
||||
Revenue per new light vehicle sold—same store(1) |
$30,765 |
$29,556 |
$1,209 |
4% |
|
Revenue per new heavy truck sold |
$49,002 |
$68,110 |
$(19,108) |
(28%) |
|
Revenue per new vehicle sold—same store(1) |
$31,399 |
$30,725 |
$674 |
2% |
|
Gross profit per new light vehicle sold—same store(1) |
$2,070 |
$2,032 |
$38 |
2% |
|
Gross profit per new heavy truck sold |
$2,151 |
$2,756 |
$(605) |
(22%) |
|
Gross profit per new vehicle sold—same store(1) |
$2,073 |
$2,053 |
$20 |
1% |
|
New light vehicle gross margin—same store(1) |
6.7% |
6.9% |
(0.2%) |
(3%) |
|
New heavy truck gross margin |
4.4% |
4.0% |
0.4% |
10% |
|
New vehicle gross margin—same store(1) |
6.6% |
6.7% |
(0.1%) |
(1%) |
|
(1)Same store information consists of amounts from dealerships for the identical months of each period presented |
|||||
Used Vehicle-- |
|||||
For the Three Months Ended |
Increase |
% |
|||
2010 |
2009 |
||||
(Dollars in millions, except for per vehicle data) |
|||||
Revenue: |
|||||
Used vehicle retail revenues—same store(1) |
|||||
Light vehicles |
$226.9 |
$189.1 |
$37.8 |
20% |
|
Heavy truck |
3.3 |
5.3 |
(2.0) |
(38%) |
|
Total used vehicle retail revenues—same store(1) |
230.2 |
194.4 |
35.8 |
18% |
|
Used vehicle retail revenues—acquisitions |
— |
— |
|||
Total used vehicle retail revenues |
230.2 |
194.4 |
35.8 |
18% |
|
Used vehicle wholesale revenues—same store(1) |
|||||
Light vehicles |
55.5 |
46.6 |
8.9 |
19% |
|
Heavy truck |
0.2 |
0.3 |
(0.1) |
(33%) |
|
Total used vehicle wholesale revenues—same store(1) |
55.7 |
46.9 |
8.8 |
19% |
|
Used vehicle wholesale revenues—acquisitions |
— |
— |
|||
Total used vehicle wholesale revenues |
55.7 |
46.9 |
8.8 |
19% |
|
Used vehicle revenue, as reported |
$285.9 |
$241.3 |
$44.6 |
18% |
|
Gross profit: |
|||||
Used vehicle retail gross profit—same store(1) |
|||||
Light vehicles |
$24.4 |
$21.1 |
$3.3 |
16% |
|
Heavy truck |
(0.3) |
(0.7) |
0.4 |
57% |
|
Total used vehicle retail gross profit—same store(1) |
24.1 |
20.4 |
3.7 |
18% |
|
Used vehicle retail gross profit—acquisitions |
— |
— |
|||
Total used vehicle retail gross profit |
24.1 |
20.4 |
3.7 |
18% |
|
Used vehicle wholesale gross profit—same store(1) |
|||||
Light vehicles |
— |
0.2 |
(0.2) |
(100%) |
|
Heavy truck |
0.1 |
(0.6) |
0.7 |
117% |
|
Total used vehicle wholesale gross profit—same store(1) |
0.1 |
(0.4) |
0.5 |
125% |
|
Used vehicle wholesale gross profit—acquisitions |
— |
— |
|||
Total used vehicle wholesale gross profit |
0.1 |
(0.4) |
0.5 |
125% |
|
Used vehicle gross profit, as reported |
$24.2 |
$20.0 |
$4.2 |
21% |
|
Used vehicle retail units: |
|||||
Used vehicle retail units—same store(1) |
|||||
Light vehicles |
11,786 |
10,399 |
1,387 |
13% |
|
Heavy truck |
111 |
139 |
(28) |
(20%) |
|
Total used vehicle retail units—same store(1) |
11,897 |
10,538 |
1,359 |
13% |
|
Used vehicle retail units—acquisitions |
— |
— |
|||
Used vehicle retail units—actual |
11,897 |
10,538 |
1,359 |
13% |
|
Used Vehicle Metrics-- |
|||||
For the Three Months Ended |
Increase |
% |
|||
2010 |
2009 |
||||
Revenue per used light vehicle retailed—same store(1) |
$19,252 |
$18,184 |
$1,068 |
6% |
|
Revenue per used heavy truck retailed |
$29,730 |
$38,129 |
$(8,399) |
(22%) |
|
Revenue per used vehicle retailed—same store(1) |
$19,349 |
$18,448 |
$901 |
5% |
|
Gross profit per used light vehicle retailed—same |
$2,070 |
$2,029 |
$41 |
2% |
|
Gross profit per used heavy truck retailed |
$(2,703) |
$(5,036) |
$2,333 |
46% |
|
Gross profit per used vehicle retailed—same store(1) |
$2,026 |
$1,936 |
$90 |
5% |
|
Used light vehicle retail gross margin—same store(1) |
10.8% |
11.2% |
(0.4%) |
(4%) |
|
Used heavy truck retail gross margin |
(9.1%) |
(13.2%) |
4.1% |
31% |
|
Used vehicle retail gross margin—same store(1) |
10.5% |
10.5% |
—% |
—% |
|
(1)Same store information consists of amounts from dealerships for the identical months of each period presented |
|||||
Parts and Service-- |
|||||
For the Three Months Ended |
Increase |
% |
|||
2010 |
2009 |
||||
(Dollars in millions) |
|||||
Revenue: |
|||||
Parts and service revenues—same store(1) |
|||||
Light vehicles |
$140.6 |
$ 143.2 |
$(2.6) |
(2%) |
|
Heavy truck |
17.1 |
15.1 |
2.0 |
13% |
|
Total parts and service revenue—same store(1) |
157.7 |
158.3 |
(0.6) |
—% |
|
Parts and service revenues—acquisitions |
— |
— |
|||
Parts and service revenue, as reported |
$157.7 |
$158.3 |
$(0.6) |
—% |
|
Gross profit: |
|||||
Parts and service gross profit—same store(1) |
|||||
Light vehicles |
$77.2 |
$ 73.7 |
$3.5 |
5% |
|
Heavy truck |
5.3 |
4.8 |
0.5 |
10% |
|
Total parts and service gross profit—same store(1) |
82.5 |
78.5 |
4.0 |
5% |
|
Parts and service gross profit—acquisitions |
— |
— |
|||
Parts and service gross profit, as reported |
$82.5 |
$ 78.5 |
$4.0 |
5% |
|
Light vehicle parts and service gross margin—same store(1) |
54.9% |
51.5% |
3.4% |
7% |
|
Heavy truck parts and service gross margin |
31.0% |
31.8% |
(0.8%) |
(3%) |
|
Parts and service gross margin—same store(1) |
52.3% |
49.6% |
2.7% |
5% |
|
(1)Same store information consists of amounts from dealerships for the identical months of each period |
|||||
Finance and Insurance, net-- |
|||||
For the Three Months |
Increase |
% |
|||
2010 |
2009 |
||||
(Dollars in millions, except for per vehicle data) |
|||||
Dealership generated F&I, net—same store(1) |
|||||
Light vehicles |
$30.0 |
$22.9 |
$7.1 |
31% |
|
Heavy truck |
0.1 |
— |
0.1 |
—% |
|
Dealership generated F&I—same store(1) |
30.1 |
22.9 |
7.2 |
31% |
|
Dealership generated F&I—acquisitions |
— |
— |
|||
Dealership generated F&I, net |
30.1 |
22.9 |
7.2 |
31% |
|
Corporate generated F&I |
0.3 |
(0.4) |
0.7 |
175% |
|
Finance and insurance, net as reported |
$30.4 |
$22.5 |
$7.9 |
35% |
|
Dealership generated light vehicle F&I per vehicle sold—same store(1) (2) |
$1,005 |
$860 |
$145 |
17% |
|
Dealership generated F&I per vehicle sold— same store(1) (2) |
$983 |
$839 |
$144 |
17% |
|
Light vehicle F&I per vehicle sold—same store(1) |
$1,015 |
$844 |
$171 |
20% |
|
Heavy truck F&I per vehicle sold |
$131 |
$— |
$131 |
—% |
|
F&I per vehicle sold—same store(1) |
$993 |
$824 |
$169 |
21% |
|
(1)Same store information consists of amounts from dealerships for the identical months of each period |
|||||
For the Three Months Ended |
|||
2010 |
2009 |
||
REVENUE MIX PERCENTAGES: |
|||
New light vehicles |
52.4% |
51.2% |
|
New heavy trucks |
3.0% |
3.7% |
|
Used light vehicle retail |
21.5% |
20.2% |
|
Used heavy truck retail |
0.3% |
0.6% |
|
Used light vehicle wholesale |
5.2% |
5.0% |
|
Used heavy truck wholesale |
—% |
—% |
|
Parts and service—light vehicle |
13.2% |
15.3% |
|
Parts and service—heavy truck |
1.6% |
1.6% |
|
Finance and insurance, net—light vehicle |
2.8% |
2.4% |
|
Finance and insurance, net—heavy truck |
—% |
—% |
|
Total revenue |
100.0% |
100.0% |
|
GROSS PROFIT MIX PERCENTAGES: |
|||
New light vehicles |
21.3% |
21.2% |
|
New heavy trucks |
0.8% |
0.9% |
|
Used light vehicle retail |
13.9% |
13.5% |
|
Used heavy truck retail |
(0.2%) |
(0.5%) |
|
Used light vehicle wholesale |
—% |
0.1% |
|
Used heavy truck wholesale |
0.1% |
(0.4%) |
|
Parts and service—light vehicle |
43.9% |
47.4% |
|
Parts and service—heavy truck |
3.0% |
3.1% |
|
Finance and insurance, net—light vehicle |
17.1% |
14.7% |
|
Finance and insurance, net—heavy truck |
0.1% |
—% |
|
Total gross profit |
100.0% |
100.0% |
|
SG&A EXPENSES AS A PERCENTAGE OF GROSS PROFIT |
76.5% |
80.5% |
|
New Vehicle-- |
|||||
For the Six Months Ended |
Increase |
% |
|||
2010 |
2009 |
||||
(Dollars in millions) |
|||||
Revenue: |
|||||
New vehicle revenue—same store(1) |
|||||
Luxury |
$378.5 |
$310.9 |
$67.6 |
22% |
|
Mid-line import |
499.2 |
434.7 |
64.5 |
15% |
|
Mid-line domestic |
146.3 |
123.7 |
22.6 |
18% |
|
Value |
14.8 |
9.3 |
5.5 |
59% |
|
Total new light vehicle revenue—same store(1) |
1,038.8 |
878.6 |
160.2 |
18% |
|
Heavy truck |
79.8 |
71.1 |
8.7 |
12% |
|
Total new vehicle revenue—same store(1) |
1,118.6 |
949.7 |
168.9 |
18% |
|
New vehicle revenue—acquisitions |
— |
— |
|||
Total new vehicle revenue, as reported |
$1,118.6 |
$949.7 |
$168.9 |
18% |
|
Gross profit: |
|||||
New vehicle gross profit—same store(1) |
|||||
Luxury |
$29.4 |
$21.9 |
$7.5 |
34% |
|
Mid-line import |
31.1 |
28.1 |
3.0 |
11% |
|
Mid-line domestic |
10.7 |
8.0 |
2.7 |
34% |
|
Value |
0.5 |
0.7 |
(0.2) |
(29%) |
|
Total new light vehicle gross profit—same store(1) |
71.7 |
58.7 |
13.0 |
22% |
|
Heavy truck |
3.1 |
3.0 |
0.1 |
3% |
|
Total new vehicle gross profit—same store(1) |
74.8 |
61.7 |
13.1 |
21% |
|
New vehicle gross profit—acquisitions |
— |
— |
|||
Total new vehicle gross profit, as reported |
$74.8 |
$61.7 |
$13.1 |
21% |
|
For the Six Months Ended |
Increase |
% |
|||
2010 |
2009 |
||||
New vehicle units: |
|||||
New vehicle retail units—same store(1) |
|||||
Luxury |
7,859 |
6,712 |
1,147 |
17% |
|
Mid-line import |
19,789 |
17,521 |
2,268 |
13% |
|
Mid-line domestic |
3,843 |
3,650 |
193 |
5% |
|
Value |
705 |
423 |
282 |
67% |
|
Total new light vehicle retail units—same store(1) |
32,196 |
28,306 |
3,890 |
14% |
|
Fleet vehicles |
1,289 |
1,200 |
89 |
7% |
|
Total new light vehicle units—same store(1) |
33,485 |
29,506 |
3,979 |
13% |
|
Heavy truck |
1,710 |
1,092 |
618 |
57% |
|
Total new vehicle units—same store(1) |
35,195 |
30,598 |
4,597 |
15% |
|
Total new vehicle units—acquisitions |
— |
— |
|||
New vehicle units—actual |
35,195 |
30,598 |
4,597 |
15% |
|
Total new light vehicle units—same store(1) |
33,485 |
29,506 |
3,979 |
13% |
|
Total new light vehicle units—acquisitions |
— |
— |
|||
Total new light vehicle units |
33,485 |
29,506 |
3,979 |
13% |
|
New Vehicle Metrics-- |
|||||
For the Six Months Ended |
Increase |
% |
|||
2010 |
2009 |
||||
Revenue per new light vehicle sold—same store(1) |
$31,023 |
$29,777 |
$1,246 |
4% |
|
Revenue per new heavy truck sold |
$46,667 |
$65,110 |
$(18,443) |
(28%) |
|
Revenue per new vehicle sold—same store(1) |
$31,783 |
$31,038 |
$745 |
2% |
|
Gross profit per new light vehicle sold—same store(1) |
$2,141 |
$1,989 |
$152 |
8% |
|
Gross profit per new heavy truck sold |
$1,813 |
$2,747 |
$(934) |
(34%) |
|
Gross profit per new vehicle sold—same store(1) |
$2,125 |
$2,016 |
$109 |
5% |
|
New light vehicle gross margin—same store(1) |
6.9% |
6.7% |
0.2% |
3% |
|
New heavy truck gross margin |
3.9% |
4.2% |
(0.3%) |
(7%) |
|
New vehicle gross margin—same store(1) |
6.7% |
6.5% |
0.2% |
3% |
|
(1)Same store information consists of amounts from dealerships for the identical months of each period |
|||||
Used Vehicle-- |
|||||
For the Six Months Ended |
Increase |
% |
|||
2010 |
2009 |
||||
(Dollars in millions, except for per vehicle data) |
|||||
Revenue: |
|||||
Used vehicle retail revenues—same store(1) |
|||||
Light vehicles |
$432.9 |
$359.0 |
$73.9 |
21% |
|
Heavy truck |
4.7 |
7.2 |
(2.5) |
(35%) |
|
Total used vehicle retail revenues—same store(1) |
437.6 |
366.2 |
71.4 |
19% |
|
Used vehicle retail revenues—acquisitions |
— |
— |
|||
Total used vehicle retail revenues |
437.6 |
366.2 |
71.4 |
19% |
|
Used vehicle wholesale revenues—same store(1) |
|||||
Light vehicles |
101.0 |
83.1 |
17.9 |
22% |
|
Heavy truck |
1.1 |
1.1 |
— |
—% |
|
Total used vehicle wholesale revenues—same store(1) |
102.1 |
84.2 |
17.9 |
21% |
|
Used vehicle wholesale revenues—acquisitions |
— |
— |
|||
Total used vehicle wholesale revenues |
102.1 |
84.2 |
17.9 |
21% |
|
Used vehicle revenue, as reported |
$539.7 |
$450.4 |
$89.3 |
20% |
|
Gross profit: |
|||||
Used vehicle retail gross profit—same store(1) |
|||||
Light vehicles |
$47.1 |
$40.6 |
$6.5 |
16% |
|
Heavy truck |
(0.3) |
(0.8) |
0.5 |
63% |
|
Total used vehicle retail gross profit—same store(1) |
46.8 |
39.8 |
7.0 |
18% |
|
Used vehicle retail gross profit—acquisitions |
— |
— |
|||
Total used vehicle retail gross profit |
46.8 |
39.8 |
7.0 |
18% |
|
Used vehicle wholesale gross profit—same store(1) |
|||||
Light vehicles |
0.4 |
0.9 |
(0.5) |
(56%) |
|
Heavy truck |
(0.3) |
(1.0) |
0.7 |
70% |
|
Total used vehicle wholesale gross profit—same store(1) |
0.1 |
(0.1) |
0.2 |
200% |
|
Used vehicle wholesale gross profit—acquisitions |
— |
— |
|||
Total used vehicle wholesale gross profit |
0.1 |
(0.1) |
0.2 |
200% |
|
Used vehicle gross profit, as reported |
$46.9 |
$39.7 |
$7.2 |
18% |
|
Used vehicle retail units: |
|||||
Used vehicle retail units—same store(1) |
|||||
Light vehicles |
22,743 |
19,988 |
2,755 |
14% |
|
Heavy truck |
180 |
199 |
(19) |
(10%) |
|
Total used vehicle retail units—same store(1) |
22,923 |
20,187 |
2,736 |
14% |
|
Used vehicle retail units—acquisitions |
— |
— |
|||
Used vehicle retail units—actual |
22,923 |
20,187 |
2,736 |
14% |
|
Used Vehicle Metrics-- |
|||||
For the Six Months Ended |
Increase |
% |
|||
2010 |
2009 |
||||
Revenue per used light vehicle retailed—same store(1) |
$19,034 |
$17,961 |
$1,073 |
6% |
|
Revenue per used heavy truck retailed |
$26,111 |
$36,181 |
$(10,070) |
(28%) |
|
Revenue per used vehicle retailed—same store(1) |
$19,090 |
$18,140 |
$950 |
5% |
|
Gross profit per used light vehicle retailed—same |
$2,071 |
$2,031 |
$40 |
2% |
|
Gross profit per used heavy truck retailed |
$(1,667) |
$(4,020) |
$2,353 |
59% |
|
Gross profit per used vehicle retailed—same store(1) |
$2,042 |
$1,972 |
$70 |
4% |
|
Used light vehicle retail gross margin—same store(1) |
10.9% |
11.3% |
(0.4%) |
(4%) |
|
Used heavy truck retail gross margin |
(6.4%) |
(11.1%) |
4.7% |
42% |
|
Used vehicle retail gross margin—same store(1) |
10.7% |
10.9% |
(0.2%) |
(2%) |
|
(1)Same store information consists of amounts from dealerships for the identical months of each period |
|||||
Parts and Service-- |
|||||
For the Six Months Ended |
Increase |
% |
|||
2010 |
2009 |
||||
(Dollars in millions) |
|||||
Revenue: |
|||||
Parts and service revenues—same store(1) |
|||||
Light vehicles |
$277.1 |
$ 286.8 |
$(9.7) |
(3%) |
|
Heavy truck |
33.7 |
30.7 |
3.0 |
10% |
|
Total parts and service revenue—same store(1) |
310.8 |
317.5 |
(6.7) |
(2%) |
|
Parts and service revenues—acquisitions |
— |
— |
|||
Parts and service revenue, as reported |
$310.8 |
$317.5 |
$(6.7) |
(2%) |
|
Gross profit: |
|||||
Parts and service gross profit—same store(1) |
|||||
Light vehicles |
$150.9 |
$ 147.1 |
$3.8 |
3% |
|
Heavy truck |
10.3 |
9.7 |
0.6 |
6% |
|
Total parts and service gross profit—same store(1) |
161.2 |
156.8 |
4.4 |
3% |
|
Parts and service gross profit—acquisitions |
— |
— |
|||
Parts and service gross profit, as reported |
$161.2 |
$ 156.8 |
$4.4 |
3% |
|
Light vehicle parts and service gross margin—same store(1) |
54.5% |
51.3% |
3.2% |
6% |
|
Heavy truck parts and service gross margin |
30.6% |
31.6% |
(1.0%) |
(3%) |
|
Parts and service gross margin—same store(1) |
51.9% |
49.4% |
2.5% |
5% |
|
(1)Same store information consists of amounts from dealerships for the identical months of each period |
|||||
Finance and Insurance, net-- |
|||||
For the Six Months |
Increase |
% |
|||
2010 |
2009 |
||||
(Dollars in millions, except for per vehicle data) |
|||||
Dealership generated F&I, net—same store(1) |
|||||
Light vehicles |
$55.5 |
$43.0 |
$12.5 |
29% |
|
Heavy truck |
0.1 |
0.1 |
— |
—% |
|
Dealership generated F&I—same store(1) |
55.6 |
43.1 |
12.5 |
29% |
|
Dealership generated F&I—acquisitions |
— |
— |
|||
Dealership generated F&I, net |
55.6 |
43.1 |
12.5 |
29% |
|
Corporate generated F&I |
0.9 |
— |
0.9 |
—% |
|
Finance and insurance, net as reported |
$56.5 |
$43.1 |
$13.4 |
31% |
|
Dealership generated light vehicle F&I per vehicle sold—same store(1) (2) |
$987 |
$869 |
$118 |
14% |
|
Dealership generated F&I per vehicle sold— same store(1) (2) |
$957 |
$849 |
$108 |
13% |
|
Light vehicle F&I per vehicle sold—same store(1) |
$1,003 |
$869 |
$134 |
15% |
|
Heavy truck F&I per vehicle sold |
$53 |
$77 |
$(24) |
(31%) |
|
F&I per vehicle sold—same store(1) |
$972 |
$849 |
$123 |
14% |
|
(1) Same store information consists of amounts from dealerships for the identical months of each period |
|||||
For the Six Months Ended |
|||
2010 |
2009 |
||
REVENUE MIX PERCENTAGES: |
|||
New light vehicles |
51.3% |
49.9% |
|
New heavy trucks |
3.9% |
4.0% |
|
Used light vehicle retail |
21.4% |
20.5% |
|
Used heavy truck retail |
0.2% |
0.4% |
|
Used light vehicle wholesale |
5.0% |
4.7% |
|
Used heavy truck wholesale |
0.1% |
0.1% |
|
Parts and service—light vehicle |
13.7% |
16.3% |
|
Parts and service—heavy truck |
1.7% |
1.7% |
|
Finance and insurance, net—light vehicle |
2.7% |
2.4% |
|
Finance and insurance, net—heavy truck |
—% |
—% |
|
Total revenue |
100.0% |
100.0% |
|
GROSS PROFIT MIX PERCENTAGES: |
|||
New light vehicles |
21.1% |
19.5% |
|
New heavy trucks |
0.9% |
1.0% |
|
Used light vehicle retail |
14.2% |
13.5% |
|
Used heavy truck retail |
(0.1%) |
(0.3%) |
|
Used light vehicle wholesale |
0.1% |
0.3% |
|
Used heavy truck wholesale |
(0.1%) |
(0.3%) |
|
Parts and service—light vehicle |
44.5% |
48.8% |
|
Parts and service—heavy truck |
3.0% |
3.2% |
|
Finance and insurance, net—light vehicle |
16.4% |
14.3% |
|
Finance and insurance, net—heavy truck |
—% |
—% |
|
Total gross profit |
100.0% |
100.0% |
|
SG&A EXPENSES AS A PERCENTAGE OF GROSS PROFIT |
77.8% |
81.7% |
|
ASBURY AUTOMOTIVE GROUP, INC. |
|||||
June 30, |
December 31, |
Increase |
% Change |
||
SELECTED BALANCE SHEET DATA |
|||||
Cash and cash equivalents |
$27.0 |
$84.7 |
$(57.7) |
(68.1%) |
|
New vehicle inventory |
400.6 |
394.2 |
6.4 |
1.6% |
|
Used vehicle inventory |
73.5 |
64.1 |
9.4 |
14.7% |
|
Parts inventory |
43.1 |
41.4 |
1.7 |
4.1% |
|
Total current assets |
768.6 |
815.6 |
(47.0) |
(5.8%) |
|
Floor plan notes payable |
351.8 |
434.7 |
(82.9) |
(19.1%) |
|
Total current liabilities |
526.7 |
598.8 |
(72.1) |
(12.0%) |
|
CAPITALIZATION: |
|||||
Long-term debt (including current portion) |
$534.9 |
$537.8 |
$(2.9) |
(0.5%) |
|
Shareholders' equity |
265.7 |
243.6 |
22.1 |
9.1% |
|
Total |
$800.6 |
$781.4 |
$19.2 |
2.5% |
|
Brand Mix - New Light Vehicle Revenue by Brand-- |
|||
For the Six Months Ended |
|||
2010 |
2009 |
||
Luxury |
|||
BMW |
9% |
10% |
|
Mercedes-Benz |
8% |
7% |
|
Lexus |
6% |
5% |
|
Acura |
5% |
5% |
|
Infiniti |
5% |
4% |
|
Other luxury |
3% |
4% |
|
Total luxury |
36% |
35% |
|
Mid-Line Imports: |
|||
Honda |
23% |
25% |
|
Toyota |
10% |
10% |
|
Nissan |
13% |
11% |
|
Other imports |
2% |
3% |
|
Total imports |
48% |
49% |
|
Mid-Line Domestic: |
|||
Ford |
9% |
9% |
|
Chevrolet |
2% |
2% |
|
Other domestics |
3% |
3% |
|
Total domestic |
14% |
14% |
|
Value |
2% |
2% |
|
Total New Light Vehicle Revenue |
100% |
100% |
|
Asbury Automotive Group, Inc. Light Vehicle Parts and Service Gross Profit Detail-- |
|||||
For the Three Months Ended |
Increase |
% |
|||
2010 |
2009 |
||||
(Dollars in millions) |
|||||
Customer pay |
$48.7 |
$46.2 |
$2.5 |
5% |
|
Warranty |
11.6 |
12.2 |
(0.6) |
(5%) |
|
Reconditioning and preparation |
11.5 |
9.6 |
1.9 |
20% |
|
Wholesale parts |
5.4 |
5.7 |
(0.3) |
(5%) |
|
Total light vehicle parts and service gross profit |
$77.2 |
$73.7 |
$3.5 |
5% |
|
For the Six Months Ended |
Increase |
% |
|||
2010 |
2009 |
||||
(Dollars in millions) |
|||||
Customer pay |
$94.1 |
$92.1 |
$2.0 |
2% |
|
Warranty |
23.8 |
25.4 |
(1.6) |
(6%) |
|
Reconditioning and preparation |
22.1 |
18.0 |
4.1 |
23% |
|
Wholesale parts |
10.9 |
11.6 |
(0.7) |
(6%) |
|
Total light vehicle parts and service gross profit |
$150.9 |
$147.1 |
$3.8 |
3% |
|
Asbury Automotive Group, Inc. Selling, General and Administrative Expense ("SG&A")-- |
|||||||
For the Three Months Ended |
Increase |
% of Gross |
|||||
2010 |
% of Gross |
2009 |
% of Gross |
||||
(Dollars in millions) |
|||||||
SG&A, excluding rent expense |
$124.1 |
70.5% |
$115.1 |
74.1% |
$9.0 |
(3.6%) |
|
Rent expense |
10.5 |
6.0% |
10.0 |
6.4% |
0.5 |
(0.4%) |
|
SG&A—total |
$134.6 |
76.5% |
$125.1 |
80.5% |
$9.5 |
(4.0%) |
|
Gross profit |
$175.9 |
$155.4 |
|||||
For the Six Months Ended |
Increase |
% of Gross |
|||||
2010 |
% of Gross |
2009 |
% of Gross |
||||
(Dollars in millions) |
|||||||
SG&A, excluding rent expense |
$242.3 |
71.3% |
$226.2 |
75.0% |
$16.1 |
(3.7%) |
|
Rent expense |
21.9 |
6.5% |
20.1 |
6.7% |
1.8 |
(0.2%) |
|
SG&A—total |
$264.2 |
77.8% |
$246.3 |
81.7% |
$17.9 |
(3.9%) |
|
Gross profit |
$339.4 |
$301.3 |
|||||
Asbury Automotive Group, Inc. Our operations during 2009 were impacted by certain items that are not core dealership operating items, which we believe are The non-core items shown in the table below include (i) restructuring costs consisting primarily of severance and retention |
|||
For the Three Months Ended |
For the Three Months Ended |
||
2010 |
2009 |
||
Non-core items – expense (income): |
|||
Restructuring costs |
$— |
$1.7 |
|
Dealer management system implementation costs |
— |
0.1 |
|
Tax benefit on non-core items above |
— |
(0.6) |
|
Total non-core items |
$— |
$1.2 |
|
Non-core items per dilutive share |
$— |
$0.04 |
|
Weighted average common shares outstanding (diluted) |
33.0 |
33.2 |
|
For the Six Months Ended |
For the Six Months Ended |
||
2010 |
2009 |
||
Non-core items – expense (income): |
|||
Restructuring costs |
$— |
$3.0 |
|
Dealer management system implementation costs |
— |
0.3 |
|
Legal settlements benefit |
— |
(1.5) |
|
Tax benefit on non-core items above |
— |
(0.6) |
|
Total non-core items |
$— |
$1.2 |
|
Non-core items per dilutive share |
$— |
$0.04 |
|
Weighted average common shares outstanding (diluted) |
32.8 |
33.0 |
|
Asbury Automotive Group, Inc. |
|||
Wachovia |
Credit |
||
Senior Leverage Ratio must be < 3.00: 1.00 |
|||
SECURED DEBT (numerator) |
|||
+ Mortgage notes payable (including mortgages associated with assets held for sale) |
$165.7 |
||
+ Borrowings under revolving credit facility |
— |
||
+ Capital lease obligations |
— |
||
+ Interest rate obligations |
— |
||
+ Other indebtedness |
0.4 |
||
= TOTAL SECURED DEBT (ex floorplan) |
$166.1 |
||
EBITDA (denominator) |
|||
+ Net income - trailing 12 months ("T12") |
$27.9 |
||
+ Add back losses from discontinued operations - T12 |
9.8 |
||
+ Add back total interest expense (excluding floorplan interest) - T12 |
39.8 |
||
+ Add back income tax expense - T12 |
23.3 |
||
+ Add back depreciation and amortization - T12 |
23.0 |
||
+ Add back other non-cash charges - T12* |
5.6 |
||
= CONSOLIDATED EBITDA |
129.4 |
||
+ Add back pro forma acquisitions EBITDA (as defined) |
— |
||
+ Add back pro forma rent savings (as defined) |
— |
||
– Less gain on debt extinguishment |
(0.1) |
||
= CONSOLIDATED PRO FORMA EBITDA |
$ 129.3 |
||
SENIOR LEVERAGE RATIO |
1.28 |
||
*Includes impairment expenses, stock-based compensation expense, deferred finance fee amortization and swap |
|||
Fixed Charge Coverage Ratio must be > 1.20: 1:00 |
|||
EBITDAR (numerator) |
|||
+ Net income - trailing 12 months ("T12") |
$27.9 |
$27.9 |
|
+ Add back losses from discontinued operations - T12 |
9.8 |
9.8 |
|
+ Add back total interest expense (ex floorplan) - T12 |
39.8 |
39.8 |
|
+ Add back income tax expense - T12 |
23.3 |
23.3 |
|
+ Add back depreciation & amortization - T12 |
23.0 |
23.0 |
|
+ Add back other non-cash charges - T12 (as defined)* |
12.3 |
5.6 |
|
– Less gain on debt extinguishment |
— |
(0.1) |
|
+ Add back non-recurring items - T12 (as defined)** |
3.2 |
— |
|
= CONSOLIDATED EBITDA |
139.3 |
129.3 |
|
+ PLUS Required principal payments - T12 (Rent) |
42.5 |
42.5 |
|
– LESS Capital expenditures (as defined) |
(16.0) |
(12.0) |
|
= TOTAL EARNINGS AVAILABLE FOR FIXED CHARGES |
$165.8 |
$159.8 |
|
FIXED CHARGES (denominator) |
|||
+ Total interest expense (ex floorplan interest) - T12 |
39.8 |
39.8 |
|
- LESS Interest associated with convertible notes - T12 |
(1.7) |
(1.7) |
|
+ PLUS Required principal payments - T12 |
8.7 |
8.7 |
|
+ PLUS Rental expense - T12 |
42.5 |
42.5 |
|
= TOTAL FIXED CHARGES |
$89.3 |
$89.3 |
|
FIXED CHARGE COVERAGE RATIO |
1.86 |
1.79 |
|
Current Ratio must be > 1.20: 1:00 |
|||
Total current assets (numerator) |
|||
+ Total current assets |
$768.6 |
$768.6 |
|
+ PLUS Available unused commitments under revolving credit facility |
125.0 |
128.1 |
|
= TOTAL CURRENT ASSETS |
$893.6 |
$896.7 |
|
Total current liabilities (denominator) |
|||
+ Total current liabilities |
$526.7 |
$526.7 |
|
= TOTAL CURRENT LIABILITIES |
$526.7 |
$526.7 |
|
CURRENT RATIO |
1.70 |
1.70 |
|
Adjusted Net Worth must be > $350 million |
|||
Stockholders' equity |
$265.7 |
||
- LESS 50% of net income subsequent to March 31, 2008 (to the extent net income is positive) |
— |
||
- LESS Proceeds from stock option exercises subsequent to March 31, 2008 |
(1.7) |
||
+ ADD Impairment expenses, net of tax |
383.0 |
||
= ADJUSTED NET WORTH |
$ 647.0 |
||
* Includes impairment expenses, stock-based compensation expense, deferred finance fee amortization and swap |
|||
SOURCE Asbury Automotive Group, Inc.
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