Asbury Automotive (ABG) 8-K Results of Operations and Financial Condition

Exhibit 99.1

	Investors May Contact:
	Stacey Yonkus Director, Investor Relations
	(212) 885-2512
	investor@asburyauto.com
	Reporters May Contact:
	Tom Pratt
	RFBinder Partners
	(212) 994-7563
	Tom.Pratt@RFBinder.com

Asbury Automotive Group Reports Second Quarter Financial Results

Income from Continuing Operations Increases 14%

SG&A as a Percent of Gross Profit Improves 140 Basis Points

New York, NY, July 27, 2006 — Asbury Automotive Group, Inc. (NYSE: ABG), one of the largest automotive retail and service companies in the U.S., today reported financial results for the second quarter and six months ended June 30, 2006.

Income from continuing operations for the second quarter increased 14% to $19.4 million, or $0.58 per diluted share, from $17.1 million, or $0.52 per diluted share, in last year’s second quarter.  Results for this year’s second quarter include non-operating one-time items that added $0.04 per diluted share.  This year’s second quarter also includes a stock-based compensation charge of approximately $0.02 per diluted share.  Excluding these items, second quarter income from continuing operations improved 10% to $18.8 million, or $0.56 per diluted share.

For the first six months of 2006, income from continuing operations was $33.0 million, or $0.98 per diluted share, up 23% from $26.9 million, or $0.82 per diluted share, in the corresponding period last year.  Results for the 2006 period include non-operating one-time items that added $0.03 per diluted share.  This year’s results also include a stock-based compensation charge of approximately $0.04 per diluted share.  Results for the first half of 2005 include after-tax costs of  approximately $0.07 per diluted share related to the Company’s regional restructuring.  Excluding these items from our 2006 and 2005 results, income from continuing operations improved 15% for the first half of 2006 to $33.3 million, or $0.99 per diluted share.

Additional financial highlights for the second quarter of 2006, as compared to last year’s second quarter, included:

·Total revenue for the quarter was approximately $1.5 billion, up 7%.  Total gross profit was $228.8 million, up 9%.

·Same-store retail revenue and gross profit (excluding fleet and wholesale businesses) were up 7% and 9%, respectively.

·New vehicle retail revenue increased 6% (5% same-store), and unit sales increased 3% (2% same-store).  New vehicle retail gross profit rose 6% (4% same-store).

·Used vehicle retail revenue (total and same-store) increased 11%  and unit sales (total and same-store) increased 6%.  Used vehicle retail gross profit (total and same-store) increased 20%.

·Parts, service and collision repair (fixed operations) revenue increased 9% (8% same-store), and gross profit increased 8% (total and same-store).

·Net finance and insurance (F&I) revenue was up 11% (10% same-store).  Excluding a one-time gain on the sale of the remaining interest in variable profits on a pool of extended service contracts, net F&I revenue rose 2% (1% same-store).  F&I per vehicle retailed (PVR) increased 6% to $966, while dealership-generated F&I PVR was flat at $875.

·Selling, general and administrative (SG&A) expenses as a percentage of gross profit were 75.1% for the quarter, a 140 basis point improvement compared with 76.5% a year ago.

President and CEO Kenneth B. Gilman said, “I am pleased to report that Asbury delivered solid financial results again in the second quarter, despite the lackluster industry environment for new car sales.  Our used vehicle and fixed operations continue to benefit from the focused investments we’ve made in those businesses over the last few years.  We also again outperformed the industry in new vehicle unit sales, thanks to our strong brand mix.  In addition, our ongoing cost-reduction efforts are helping to offset some of the impact of higher interest rates.”

J. Gordon Smith, Senior Vice President and CFO, said, “Asbury’s SG&A expenses for the second quarter improved by 140 basis points as a percentage of gross profit.  Asbury’s overall results include an after-tax gain of $2.1 million on the sale of Asbury’s remaining interest in variable profits on a pool of extended service contracts, and an after-tax charge of $0.9 million related to the Company’s recent abandonment of strategic projects.  We continue to realize cost savings from our regional reorganization in 2005 and benefited from the further leveraging of our fixed cost structure.  Our more strategic approach to advertising is also delivering substantial savings, as advertising expense again declined, approximately 10% on a PVR basis.  In addition, we have identified cost reduction opportunities as we continue to standardize our back office systems.  For example, we are in the process of consolidating Asbury’s three dealer management systems (DMS) to a single technology vendor .”

Mr. Gilman continued, “I am particularly pleased to report the standout performance of our West region during the quarter, which delivered growth across all four of their business lines. Of particular note, our investments in two new Honda stores in Texas and Southern California are beginning to pay dividends. In my view, a significant amount of potential remains in our

West region, with an expectation of continued improvements over the next two years.”

Commenting on earnings guidance for 2006, the Company increased its guidance to a range of $1.82 and $1.87 for diluted earnings per share from continuing operations, including the expected $0.10 per share impact of the new accounting rules governing the expensing of stock-based compensation.

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 (800) 289-0730 (domestic), or (913) 981-5509 (international); no access code is necessary.  Callers should dial in approximately 5 to10 minutes before the call begins.

About Asbury Automotive Group

Asbury Automotive Group, Inc., headquartered in New York City, is one of the largest automobile retailers in the U.S., with 2005 revenue of approximately $5.5 billion.  Built through a combination of organic growth and a series of strategic acquisitions, the Company currently operates 87 retail auto stores, encompassing 120 franchises for the sale and servicing of 33 different brands of American, European and Asian automobiles.  Asbury believes that its product mix contains a higher proportion of the more desirable luxury and mid-line import brands than most public automotive retailers.  The Company 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” as that term is defined in the Private Securities Litigation Reform Act of 1995. The forward-looking statements include statements relating to goals, plans, projections and guidance regarding the Company’s financial position, results of operations, market position, product development, pending and potential future acquisitions and business strategy. These statements are based on management’s current expectations 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, the Company’s relationships with vehicle manufacturers and other suppliers which could cause, among other things, acquisitions under contract or letters of intent to fail, risks associated with the Company’s indebtedness, risks related to pending and potential future acquisitions, risks related to competition in the automotive retail and service industries, general economic conditions both nationally and locally and governmental regulations and legislation. There can be no guarantees that the Company’s plans for future operations will be successfully implemented or that they will prove to be commercially successful. These and other risk factors are discussed in the Company’s annual report on Form 10-K and in its other filings with the Securities and Exchange Commission. 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 thousands, except per share data)

(Unaudited)

	For the Three Months Ended  June 30,						For the Six Months Ended June 30,
	2006			2005			2006			2005
REVENUES:
New vehicle	$	918,116		$	872,308		$	1,739,153		$	1,643,577
Used vehicle	384,561			348,416			742,667			668,872
Parts, service and collision repair	172,036			157,999			341,924			309,672
Finance and insurance, net	43,224			39,064			78,844			74,554
Total revenues	1,517,937			1,417,787			2,902,588			2,696,675
COST OF SALES:
New vehicle	854,390			812,339			1,617,630			1,530,845
Used vehicle	349,923			318,479			675,102			610,233
Parts, service and collision repair	84,842			77,510			169,744			151,641
Total cost of sales	1,289,155			1,208,328			2,462,476			2,292,719
GROSS PROFIT	228,782			209,459			440,112			403,956
OPERATING EXPENSES:
Selling, general and administrative	171,715			160,185			337,364			318,552
Depreciation and amortization	5,113			4,768			10,088			9,460
Income from operations	51,954			44,506			92,660			75,944
OTHER INCOME (EXPENSE):
Floor plan interest expense	(11,239		)	(7,458		)	(20,401		)	(13,988		)
Other interest expense	(11,139		)	(10,269		)	(22,043		)	(19,869		)
Interest income	1,021			171			1,748			435
Other income, net	481			332			825			441
Total other expense, net	(20,876		)	(17,224		)	(39,871		)	(32,981		)
Income before income taxes	31,078			27,282			52,789			42,963
INCOME TAX EXPENSE	11,654			10,231			19,796			16,111
INCOME FROM CONTINUING OPERATIONS	19,424			17,051			32,993			26,852
DISCONTINUED OPERATIONS, net of tax	(420		)	(1,065		)	(1,436		)	(1,225		)
NET INCOME	$	19,004		$	15,986		$	31,557		$	25,627
BASIC EARNINGS PER COMMON SHARE:
Continuing operations	$	0.59		$	0.52		$	1.00		$	0.82
Discontinued operations	(0.02		)	(0.03		)	(0.04		)	(0.03		)
Net income	$	0.57		$	0.49		$	0.96		$	0.79
DILUTED EARNINGS PER COMMON SHARE:
Continuing operations	$	0.58		$	0.52		$	0.98		$	0.82
Discontinued operations	(0.02		)	(0.03		)	(0.04		)	(0.04		)
Net income	$	0.56		$	0.49		$	0.94		$	0.78
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic	33,077			32,604			33,000			32,596
Diluted	33,709			32,725			33,680			32,753

Asbury Automotive Group, Inc.

Selected Data

(Dollars in thousands, except per vehicle data)

(Unaudited)

	As Reported for the  Three Months Ended June 30,										Same Store for the  Three Months Ended June 30,
	2006					2005					2006					2005
RETAIL VEHICLES SOLD:
New retail units	28,329			63.3	%	27,449			64.0	%	27,986			63.0	%	27,449			64.0	%
Used retail units	16,414			36.7	%	15,425			36.0	%	16,414			37.0	%	15,425			36.0	%
Total retail units	44,743			100.0	%	42,874			100.0	%	44,400			100.0	%	42,874			100.0	%
REVENUE:
New retail	$	887,068		58.4	%	$	838,985		59.2	%	$	876,954		58.2	%	$	838,985		59.2	%
Used retail	295,268			19.5	%	265,220			18.7	%	295,268			19.6	%	265,220			18.7	%
Parts, service and collision repair	172,036			11.3	%	157,999			11.1	%	170,753			11.3	%	157,999			11.1	%
Finance and insurance, net	43,224			2.8	%	39,064			2.8	%	42,932			2.9	%	39,064			2.8	%
Total retail revenue	1,397,596					1,301,268					1,385,907					1,301,268
Fleet	31,048			2.0	%	33,323			2.4	%	30,639			2.0	%	33,323			2.4	%
Wholesale	89,293			6.0	%	83,196			5.8	%	89,293			6.0	%	83,196			5.8	%
Total revenue	$	1,517,937		100.0	%	$	1,417,787		100.0	%	$	1,505,839		100.0	%	$	1,417,787		100.0	%
GROSS PROFIT:
New retail	$	62,466		27.3	%	$	59,140		28.2	%	$	61,762		27.2	%	$	59,140		28.2	%
Used retail	35,897			15.7	%	29,818			14.2	%	35,897			15.8	%	29,818			14.2	%
Parts, service and collision repair	87,194			38.1	%	80,489			38.4	%	86,527			38.1	%	80,489			38.4	%
Finance and insurance, net	43,224			18.9	%	39,064			18.6	%	42,932			18.9	%	39,064			18.6	%
Total retail gross profit	228,781					208,511					227,118					208,511
Fleet	1,260			0.6	%	829			0.4	%	1,240			0.5	%	829			0.4	%
Wholesale	(1,259		)	(0.6	)%	119			0.2	%	(1,259		)	(0.5	)%	119			0.2	%
Total gross profit	$	228,782		100.0	%	$	209,459		100.0	%	$	227,099		100.0	%	$	209,459		100.0	%
Adjusted gross profit	$	225,382				$	209,459				$	223,699				$	209,459
Adjusted SG&A expenses	$	169,371				$	160,185				$	168,537				$	160,185
Adjusted SG&A expenses as a percentage of adjusted gross profit	75.1		%			76.5		%			75.3		%			76.5		%
REVENUE PER VEHICLE RETAILED:
New retail	$	31,313				$	30,565				$	31,335				$	30,565
Used retail	17,989					17,194					17,989					17,194
GROSS PROFIT PER VEHICLE RETAILED:
New retail	$	2,205				$	2,155				$	2,207				$	2,155
Used retail	2,187					1,933					2,187					1,933
Finance and insurance, net	966					911					967					911
Dealership generated finance and insurance, net	875					879					875					879
GROSS PROFIT MARGIN:
New retail	7.0		%			7.0		%			7.0		%			7.0		%
Used retail	12.2		%			11.2		%			12.2		%			11.2		%
Parts, service and collision repair	50.7		%			50.9		%			50.7		%			50.9		%

Asbury Automotive Group, Inc.

Selected Data

(Dollars in thousands, except per vehicle data)

(Unaudited)

	As Reported for the  Six Months Ended June 30,										Same Store for the  Six Months Ended June 30,
	2006					2005					2006					2005
RETAIL VEHICLES SOLD:
New retail units	52,887			62.4	%	50,934			63.0	%	51,911			62.1	%	50,934			63.0	%
Used retail units	31,904			37.6	%	29,926			37.0	%	31,675			37.9	%	29,926			37.0	%
Total retail units	84,791			100.0	%	80,860			100.0	%	83,586			100.0	%	80,860			100.0	%
REVENUE:
New retail	$	1,658,049		57.1	%	$	1,563,516		58.0	%	$	1,630,973		56.9	%	$	1,563,516		58.0	%
Used retail	565,414			19.5	%	503,825			18.7	%	561,891			19.6	%	503,825			18.7	%
Parts, service and collision repair	341,924			11.8	%	309,672			11.5	%	338,566			11.8	%	309,672			11.5	%
Finance and insurance, net	78,844			2.7	%	74,554			2.8	%	77,785			2.7	%	74,554			2.8	%
Total retail revenue	2,644,231					2,451,567					2,609,215					2,451,567
Fleet	81,104			2.8	%	80,061			3.0	%	80,285			2.8	%	80,061			3.0	%
Wholesale	177,253			6.1	%	165,047			6.0	%	176,373			6.2	%	165,047			6.0	%
Total revenue	$	2,902,588		100.0	%	$	2,696,675		100.0	%	$	2,865,873		100.0	%	$	2,696,675		100.0	%
GROSS PROFIT:
New retail	$	119,441		27.1	%	$	111,344		27.6	%	$	117,604		27.0	%	$	111,344		27.6	%
Used retail	68,415			15.5	%	57,429			14.2	%	67,922			15.6	%	57,429			14.2	%
Parts, service and collision repair	172,180			39.1	%	158,031			39.1	%	170,456			39.2	%	158,031			39.1	%
Finance and insurance, net	78,844			17.9	%	74,554			18.5	%	77,785			17.9	%	74,554			18.5	%
Total retail gross profit	438,880					401,358					433,767					401,358
Fleet	2,082			0.5	%	1,388			0.3	%	2,069			0.5	%	1,388			0.3	%
Wholesale	(850		)	(0.1	)%	1,210			0.3	%	(883		)	(0.2	)%	1,210			0.3	%
Total gross profit	$	440,112		100.0	%	$	403,956		100.0	%	$	434,953		100.0	%	$	403,956		100.0	%
Adjusted gross profit	$	436,712				$	403,956				$	431,553				$	403,956
Adjusted SG&A expenses	$	333,410				$	314,986				$	330,574				$	314,986
Adjusted SG&A expenses as a percentage of adjusted gross profit	76.3		%			78.0		%			76.6		%			78.0		%
REVENUE PER VEHICLE RETAILED:
New retail	$	31,351				$	30,697				$	31,419				$	30,697
Used retail	17,722					16,836					17,739					16,836
GROSS PROFIT PER VEHICLE RETAILED:
New retail	$	2,258				$	2,186				$	2,265				$	2,186
Used retail	2,144					1,919					2,144					1,919
Finance and insurance, net	930					922					931					922
Dealership generated finance and insurance, net	870					890					870					890
GROSS PROFIT MARGIN:
New retail	7.2		%			7.1		%			7.2		%			7.1		%
Used retail	12.1		%			11.4		%			12.1		%			11.4		%
Parts, service and collision repair	50.4		%			51.0		%			50.3		%			51.0		%

Asbury Automotive Group, Inc.

Selected Data

(In thousands)

	As of		As of
	June 30, 2006		December 31, 2005
	(Unaudited)
BALANCE SHEET HIGHLIGHTS:
Cash and cash equivalents	$	89,097	$	57,194
Inventories	779,817		709,791
Total current assets	1,230,970		1,185,180
Floor plan notes payable	657,328		614,382
Total current liabilities	841,092		838,226
CAPITALIZATION:
Long-term debt (including current portion)	$	497,000	$	496,949
Stockholders’ equity	587,630		547,766
Total	$	1,084,630	$	1,044,715

ASBURY AUTOMOTIVE GROUP, INC.
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
(In thousands, except vehicle and per vehicle data)
(Unaudited)

The Company evaluates F&I gross profit performance on a per vehicle retailed (“PVR”) basis by dividing total F&I gross profit by the number of retail vehicles sold.  During 2003, the Company renegotiated a contract with a third party finance and insurance product provider, which resulted in the recognition of income in 2006 and 2005 that was not attributable to retail vehicles sold during 2006 and 2005 (referred to as “corporate generated F&I gross profit”).  During the second quarter of 2006, the Company decided to sell its remaining interest in the pool of extended service contracts which had been the source of its corporate generated F&I gross profit, which resulted in the recognition of a $3.4 million gain on the sale (“corporate generated F&I gain”).  The Company believes that dealership generated F&I PVR, which excludes the additional amounts derived from contracts negotiated by the corporate office, provides a more accurate measure of the Company’s finance and insurance operating performance.  The following table reconciles F&I gross profit to dealership generated F&I gross profit, and provides the necessary components to calculate dealership generated F&I gross profit PVR.

	As Reported for the Three Months Ended June 30,						Same Store for the Three Months Ended June 30,
	2006			2005			2006			2005
RECONCILIATION OF FINANCE AND INSURANCE GROSS PROFIT TO DEALERSHIP GENERATED FINANCE AND INSURANCE GROSS PROFIT:
F&I gross profit	$	43,224		$	39,064		$	42,932		$	39,064
Less: corporate generated F&I gross profit	(692		)	(1,367		)	(692		)	(1,367		)
Less: corporate generated F&I gain	(3,400		)	—			(3,400		)	—
Dealership generated F&I gross profit	$	39,132		$	37,697		$	38,840		$	37,697
RETAIL VEHICLES SOLD:
New retail units	28,329			27,449			27,986			27,449
Used retail units	16,414			15,425			16,414			15,425
Total retail units	44,743			42,874			44,400			42,874
F&I gross profit PVR	$	966		$	911		$	967		$	911
Dealership generated F&I gross profit PVR	$	875		$	879		$	875		$	879

	As Reported for the Six Months Ended June 30,						Same Store for the Six Months Ended June 30,
	2006			2005			2006			2005
RECONCILIATION OF FINANCE AND INSURANCE GROSS PROFIT TO DEALERSHIP GENERATED FINANCE AND INSURANCE GROSS PROFIT:
F&I gross profit	$	78,844		$	74,554		$	77,785		$	74,554
Less: corporate generated F&I gross profit	(1,685		)	(2,570		)	(1,685		)	(2,570		)
Less: corporate generated F&I gain	(3,400		)	—			(3,400		)	—
Dealership generated F&I gross profit	$	73,759		$	71,984		$	72,700		$	71,984
RETAIL VEHICLES SOLD:
New retail units	52,887			50,934			51,911			50,934
Used retail units	31,904			29,926			31,675			29,926
Total retail units	84,791			80,860			83,586			80,860
F&I gross profit PVR	$	930		$	922		$	931		$	922
Dealership generated F&I gross profit PVR	$	870		$	890		$	870		$	890

The Company’s operating income was impacted by (i) the adoption of Statement of Financial Accounting Standards No. 123R (“SFAS 123R”), (ii) its decision to issue restricted stock units instead of stock options, (iii) the sale of its remaining interest in a pool of extended service contracts, and (iv) its decision to abandon certain strategic projects during the three and six months ended June 30, 2006; and expenses related to our regional reorganization during the six months ended June 30, 2005. Effective January 1, 2006, The Company has adopted SFAS 123R under the modified prospective transition method and therefore has recorded stock compensation expense under the fair value method for the three and six months ended June 30, 2006. Prior to January 1, 2006, stock compensation expense was recorded under the intrinsic value method.

	As Reported for the Three Months Ended June 30,						Increase
	2006			2005			(Decrease)		% Change
RECONCILIATION OF ADJUSTED SG&A EXPENSES AS A PERCENTAGE OF ADJUSTED GROSS PROFIT
SG&A expenses	$	171,715		$	160,185		$	11,530	7	%
Abandoned strategic project expenses	(1,417		)	—
Stock compensation expense	(927		)	—
Adjusted SG&A expenses	$	169,371		$	160,185		$	9,186	6	%
Gross profit	$	228,782		$	209,459		$	19,323	9	%
Corporate generated F&I gain	(3,400		)	—
Adjusted gross profit	$	225,382		$	209,459		$	15,923	8	%
Adjusted SG&A expenses as a percentage of adjusted gross profit	75.1		%	76.5		%

	Same Store for the Three Months Ended June 30,						Increase
	2006			2005			(Decrease)		% Change
RECONCILIATION OF ADJUSTED SG&A EXPENSES AS A PERCENTAGE OF ADJUSTED GROSS PROFIT
SG&A expenses	$	170,881		$	160,185		$	10,696	7	%
Abandoned strategic project expenses	(1,417		)	—
Stock compensation expense	(927		)	—
Adjusted SG&A expenses	$	168,537		$	160,185		$	8,352	5	%
Gross profit	$	227,099		$	209,459		$	17,640	8	%
Corporate generated F&I gain	(3,400		)	—
Adjusted gross profit	$	223,699		$	209,459		$	14,240	7	%
Adjusted SG&A expenses as a percentage of adjusted gross profit	75.3		%	76.5		%

	As Reported for the Six Months Ended June 30,						Increase
	2006			2005			(Decrease)		% Change
RECONCILIATION OF ADJUSTED SG&A EXPENSES AS A PERCENTAGE OF ADJUSTED GROSS PROFIT
SG&A expenses	$	337,364		$	318,552		$	18,812	6	%
Reorganization expenses	—			(3,566		)
Abandoned strategic project expenses	(1,658		)	—
Stock compensation expense	(2,296		)	—
Adjusted SG&A expenses	$	333,410		$	314,986		$	18,424	6	%
Gross profit	$	440,112		$	403,956		$	36,156	9	%
Corporate generated F&I gain	(3,400		)	—
Adjusted gross profit	$	436,712		$	403,956		$	32,756	8	%
Adjusted SG&A expenses as a percentage of adjusted gross profit	76.3		%	78.0		%

	Same Store for the Six Months Ended June 30,						Increase
	2006			2005			(Decrease)		% Change
RECONCILIATION OF ADJUSTED SG&A EXPENSES AS A PERCENTAGE OF ADJUSTED GROSS PROFIT
SG&A expenses	$	334,528		$	318,552		$	15,976	5	%
Reorganization expenses	—			(3,566		)
Abandoned strategic project expenses	(1,658		)	—
Stock compensation expense	(2,296		)	—
Adjusted SG&A expenses	$	330,574		$	314,986		$	15,588	5	%
Gross profit	$	434,953		$	403,956		$	30,997	8	%
Corporate generated F&I gain	(3,400		)	—
Adjusted gross profit	$	431,553		$	403,956		$	27,597	7	%
Adjusted SG&A expenses as a percentage of adjusted gross profit	76.6		%	78.0		%

	As Reported for the Three Months Ended June 30,					Increase
	2006			2005		(Decrease)		% Change
RECONCILIATION OF ADJUSTED INCOME FROM CONTINUING OPERATIONS
Net income	$	19,004		$	15,986	$	3,018	19	%
Discontinued operations, net of tax	420			1,065
Income from continuing operations	19,424			17,051		2,373		14	%
Corporate generated F&I gain, net of tax	(2,125		)	—
Abandoned strategic project expenses, net of tax	886			—
Stock compensation expense, net of tax	579			—-
Adjusted income from continuing operations	$	18,764		$	17,051	$	1,713	10	%
Net income	$	0.56		$	0.49	$	0.07	14	%
Discontinued operations, net of tax	0.02			0.03
Income from continuing operations	0.58			0.52		0.06		12	%
Corporate generated F&I gain, net of tax	(0.06		)	—
Abandoned strategic project expenses, net of tax	0.02			—
Stock compensation expense, net of tax	0.02			—-
Adjusted income from continuing operations	$	0.56		$	0.52	$	0.04	8	%
Weighted average common shares outstanding (diluted):	33,709			32,725

	As Reported for the Six Months Ended June 30,					Increase
	2006			2005		(Decrease)		% Change
RECONCILIATION OF ADJUSTED INCOME FROM CONTINUING OPERATIONS
Net income	$	31,557		$	25,627	$	5,930	23	%
Discontinued operations, net of tax	1,436			1,225
Income from continuing operations	32,993			26,852		6,141		23	%
Reorganization expense, net of tax	—			2,229
Corporate generated F&I gain, net of tax	(2,125		)	—
Abandoned strategic project expenses, net of tax	1,036			—
Stock compensation expense, net of tax	1,435			—
Adjusted income from continuing operations	$	33,339		$	29,081	$	4,258	15	%
Net income	$	0.94		$	0.78	$	0.16	21	%
Discontinued operations, net of tax	0.04			0.04
Income from continuing operations	0.98			0.82		0.16		20	%
Reorganization expense, net of tax	—			0.07
Corporate generated F&I gain, net of tax	(0.06		)	—
Abandoned strategic project expenses, net of tax	0.03			—
Stock compensation expense, net of tax	0.04			—
Adjusted income from continuing operations	$	0.99		$	0.89	$	0.10	11	%
Weighted average common shares outstanding (diluted):	33,680			32,753