Asbury Automotive (ABG) 8-K Asbury Automotive Group Reports Third Quarter Financial Results

Investors May Contact:

Keith R. Style

V.P.-Finance and Investor Relations

(212) 885-2530

investor@asburyauto.com

Reporters May Contact:

Stephanie Lowenthal

RF|Binder Partners

(212) 994-7619

Stephanie.Lowenthal@RFBinder.com

Asbury Automotive Group Reports Third Quarter Financial Results

EPS of $0.58 from Continuing Operations Up 7%

Announces Three Dealership Acquisitions Totaling $210 Million in Annual Revenue

New York, NY, October 30, 2007 – 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 third quarter and nine months ended September 30, 2007.

Income from continuing operations for the third quarter was $19.2 million, or $0.58 per diluted share, a 5% increase from $18.4 million, or $0.54 per diluted share, a year ago. Results for last year’s third quarter included $0.05 per diluted share in non-operating expenses.

For the first nine months of 2007, income from continuing operations was $42.8 million, or $1.27 per diluted share, compared with $51.6 million, or $1.52 per diluted share, in the corresponding period last year. Non-operating items reduced earnings per diluted share by $0.41 in the first nine months of 2007, and reduced earnings by $0.01 per diluted share in the corresponding period last year. Excluding these items, income from continuing operations for the first nine months of 2007 increased 9% to $56.5 million, or $1.68 per diluted share, from $51.9 million, or $1.53 per diluted share.

President and CEO Charles R. Oglesby said, “The soft retail vehicle environment presented a significant challenge for Asbury in the third quarter. The decline we experienced in used vehicles weighed heavily on our overall results, while the performance in the remaining three business lines remained relatively strong. In new vehicles we outperformed our local competition, gaining market share; in F&I we achieved high single-digit gains per vehicle retailed; and our fixed operations once again delivered record results.”

Mr. Oglesby continued, “Our results were further weighed down by continued weakness in the heavy truck market, with our new unit sales down 25%. We now expect that the turnaround in this market may be pushed out as far as the second quarter of 2008.”

J. Gordon Smith, Senior Vice President and CFO, said, “The third quarter was characterized by a weak July, followed by a relatively strong August, and culminating with a soft September. Adjusting our cost structure proved to be a challenge in this choppy retail environment, although 80 basis points, or nearly half, of the deterioration in our selling, general and administrative expenses as a percentage of gross profit was related to an abandoned real estate development project and legal settlement costs. We continued to make adjustments throughout the quarter in response to local market conditions, including reductions in our advertising plans and an in-depth review of our staffing to ensure our dealerships are correctly positioned heading into the slower selling season.”

Mr. Smith continued, “For the quarter, the effective tax rate was 32.3%, compared to 37.5% last year. The benefit in the tax rate was offset by several non-operating charges to SG&A expense during the quarter. We expect an effective tax rate of approximately 37.3% for the fourth quarter.”

During the third quarter, Asbury acquired a Honda dealership and a Dodge dealership in the Tampa market. In October, the Company acquired a BMW-Mini dealership in Princeton, New Jersey. “Collectively, these acquisitions total approximately $210 million in annualized revenues,” Mr. Oglesby said, “and represent exceptional growth opportunities for Asbury. For the year to date, we have now acquired dealerships with approximately $350 million in annualized revenues, substantially exceeding our target of $200 million per year.”

Additional financial information for the third quarter of 2007, as compared to last year’s third quarter, included:

• Total revenue for the quarter of approximately $1.5 billion was down 1 percent from a year ago. Total gross profit was $228.3 million, up less than 1 percent.

• New light vehicle retail revenue increased 1% (down 1% on a same-store basis) and new light vehicle unit sales decreased 1% (down 3% same-store). New light vehicle retail gross profit was up 3% (up 1% same-store). New heavy truck retail revenue decreased 27% and new heavy truck unit sales declined 25%. New heavy truck retail gross profit was down 28%.

• Used vehicle retail revenue decreased 6% (down 7% same-store), and used unit sales decreased 9% (down 10% same-store). Used vehicle retail gross profit decreased 14% (down 16% same-store).

• Parts, service and collision repair revenue increased 4% (2% same-store), and gross profit rose 6% (4% same-store).

• Net finance and insurance (F&I) revenue increased 4% (2% same-store). F&I per vehicle retailed increased 9% to $989.

• Selling, general and administrative (SG&A) expenses as a percentage of gross profit were 77.1%, compared with 75.9% a year ago. Adjusted for non-operating items, SG&A expenses a year ago were 75.5% of gross profit.

Under the current share repurchase program, the Company has repurchased approximately one million shares of Asbury common stock through October 30, 2007, with one million shares remaining available for repurchase under the current two million share repurchase program authorized in August 2007. This brings total repurchases of Asbury stock for the year to date to approximately 2.3 million shares.

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On October 26, 2007, the Company announced that the board of directors has declared a quarterly cash dividend of $0.225 per share of the Company’s outstanding common stock payable on November 19, 2007, to stockholders of record as of the close of business on November 5, 2007.

The Company is reducing its guidance for 2007 diluted earnings per share from continuing operations to a range between $2.10 and $2.18, from $2.20 to $2.28 previously.

Asbury will host a conference call to discuss its third quarter results this afternoon at 2:00 p.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 877-718-5111 (domestic), or 719-325-4817 (international); no access code is necessary. Callers should dial in approximately 5-10 minutes before the call begins.

About Asbury Automotive Group

Asbury Automotive Group, Inc. (“Asbury”), headquartered in New York City, 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 93 retail auto stores, encompassing 124 franchises for the sale and servicing of 35 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” as that term is defined in the Private Securities Litigation Reform Act of 1995. The forward-looking statements include statements relating to goals, plans, earnings projections, acquisition performance and guidance regarding the Company’s financial position, results of operations, market position, 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, risks associated with the Company’s indebtedness, risks related to potential future acquisitions, risks related to competition in the automotive retail and service industries, general economic conditions both nationally and locally, governmental regulations, legislation and the Company’s ability to execute certain operational strategies. 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 or that the Company will be able to continue paying dividends in the future at the current rate or at all. These and other risk factors are discussed in the Company’s annual report on Form 10-K/A 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.

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[Tables Follow]

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Asbury Automotive Group, Inc.

Consolidated Statements of Income

(In thousands, except per share data)

(Unaudited)

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2007			2006			2007			2006
REVENUES:
New vehicle	$	893,977		$	901,783		$	2,609,709		$	2,618,109
Used vehicle		378,140			388,095			1,151,790			1,119,249
Parts, service and collision repair		176,707			170,246			527,168			509,476
Finance and insurance, net		42,210			40,590			124,470			118,446
Total revenues		1,491,034			1,500,714			4,413,137			4,365,280
COST OF SALES:
New vehicle		829,977			838,231			2,423,950			2,434,562
Used vehicle		348,391			351,941			1,051,375			1,016,381
Parts, service and collision repair		84,351			83,153			253,022			251,596
Total cost of sales		1,262,719			1,273,325			3,728,347			3,702,539
GROSS PROFIT		228,315			227,389			684,790			662,741
OPERATING EXPENSES:
Selling, general and administrative		176,067			172,568			526,078			505,317
Depreciation and amortization		5,385			5,056			16,061			15,104
Income from operations		46,863			49,765			142,651			142,320
OTHER INCOME (EXPENSE):
Floor plan interest expense		(10,618	)		(10,123	)		(33,024	)		(30,067	)
Other interest expense		(9,083	)		(11,225	)		(30,037	)		(33,268	)
Interest income		900			1,523			3,906			3,271
Loss on extinguishment of long-term debt		—			(914	)		(18,523	)		(914	)
Other income, net		343			399			1,032			1,223
Total other expense, net		(18,458	)		(20,340	)		(76,646	)		(59,755	)
Income before income taxes		28,405			29,425			66,005			82,565
INCOME TAX EXPENSE		9,185			11,035			23,210			30,962
Income from continuing operations		19,220			18,390			42,795			51,603
DISCONTINUED OPERATIONS, net of tax		(210	)		(1,211	)		(2,793	)		(2,867	)
Net income	$	19,010		$	17,179		$	40,002		$	48,736
EARNINGS PER COMMON SHARE:
BASIC -
Continuing operations	$	0.59		$	0.55		$	1.31		$	1.56
Discontinued operations		—			(0.03	)		(0.09	)		(0.09	)
Net income	$	0.59		$	0.52		$	1.22		$	1.47
DILUTED -
Continuing operations	$	0.58		$	0.54		$	1.27		$	1.52
Discontinued operations		(0.01	)		(0.03	)		(0.08	)		(0.08	)
Net income	$	0.57		$	0.51		$	1.19		$	1.44
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic		32,450			33,258			32,754			33,087
Diluted		33,244			33,841			33,693			33,853

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Asbury Automotive Group, Inc.

Selected Data

(Dollars in thousands, except per vehicle data)

(Unaudited)

	As Reported for the Three Months Ended September 30,										Increase (Decrease)			% Change
	2007					2006
RETAIL VEHICLES SOLD:
New retail units - light vehicles		26,262		61.5	%		26,497		59.2	%		(235	)	(0.9	)%
New retail units - heavy trucks		964		2.3	%		1,288		2.9	%		(324	)	(25.2	)%
Total new retail units		27,226		63.8	%		27,785		62.1	%		(559	)	(2.0	)%
Used retail units		15,454		36.2	%		16,941		37.9	%		(1,487	)	(8.8	)%
Total retail units		42,680		100.0	%		44,726		100.0	%		(2,046	)	(4.6	)%
NEW UNITS SOLD (INCLUDING FLEET)		29,361					29,676					(315	)	(1.1	)%
REVENUE:
New retail - light vehicles	$	792,166		53.1	%	$	781,739		52.1	%	$	10,427		1.3	%
New retail - heavy trucks		58,923		4.0	%		81,035		5.4	%		(22,112	)	(27.3	)%
Total new retail revenue		851,089		57.1	%		862,774		57.5	%		(11,685	)	(1.4	)%
Used retail		284,103		19.1	%		300,752		20.0	%		(16,649	)	(5.5	)%
Parts, service and collision repair		176,707		11.8	%		170,246		11.4	%		6,461		3.8	%
Finance and insurance, net		42,210		2.8	%		40,590		2.7	%		1,620		4.0	%
Total retail revenue		1,354,109					1,374,362					(20,253	)	(1.5	)%
Fleet		42,888		2.9	%		39,009		2.6	%		3,879		9.9	%
Wholesale		94,037		6.3	%		87,343		5.8	%		6,694		7.7	%
Total revenue	$	1,491,034		100.0	%	$	1,500,714		100.0	%	$	(9,680	)	(0.6	)%
GROSS PROFIT:
New retail - light vehicles	$	61,078		26.8	%	$	59,420		26.1	%	$	1,658		2.8	%
New retail - heavy trucks		2,236		1.0	%		3,124		1.4	%		(888	)	(28.4	)%
Total new retail gross profit		63,314		27.8	%		62,544		27.5	%		770		1.2	%
Used retail		31,237		13.7	%		36,332		16.0	%		(5,095	)	(14.0	)%
Parts, service and collision repair		92,356		40.4	%		87,093		38.3	%		5,263		6.0	%
Finance and insurance, net		42,210		18.5	%		40,590		17.9	%		1,620		4.0	%
Total retail gross profit		229,117					226,559					2,558		1.1	%
Fleet		686		0.3	%		1,008		0.4	%		(322	)	(31.9	)%
Wholesale		(1,488	)	(0.7	)%		(178	)	(0.1	)%		(1,310	)	(736.0	)%
Total gross profit	$	228,315		100.0	%	$	227,389		100.0	%	$	926		0.4	%
Adjusted SG&A expenses	$	176,067				$	171,722				$	4,345		2.5	%
Adjusted SG&A expenses as a percentage of gross profit		77.1	%				75.5	%				1.6	%	2.1	%
REVENUE PER VEHICLE RETAILED:
New retail - light vehicles	$	30,164				$	29,503				$	661		2.2	%
New retail - heavy trucks		61,123					62,915					(1,792	)	(2.8	)%
Used retail		18,384					17,753					631		3.6	%
GROSS PROFIT PER VEHICLE RETAILED:
New retail - light vehicles	$	2,326				$	2,243				$	83		3.7	%
New retail - heavy trucks		2,320					2,425					(105	)	(4.3	)%
Used retail		2,021					2,145					(124	)	(5.8	)%
Finance and insurance, net		989					908					81		8.9	%
GROSS PROFIT MARGIN:
New retail - light vehicles		7.7	%				7.6	%				0.1	%	1.3	%
New retail - heavy trucks		3.8	%				3.9	%				(0.1	)%	(2.6	)%
Used retail		11.0	%				12.1	%				(1.1	)%	(9.1	)%
Parts, service and collision repair		52.3	%				51.2	%				1.1	%	2.1	%

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Asbury Automotive Group, Inc.

Selected Data

(Dollars in thousands, except per vehicle data)

(Unaudited)

	Same Store for the Three Months Ended September 30,										Increase (Decrease)			% Change
	2007					2006
RETAIL VEHICLES SOLD:
New retail units—light vehicles		25,750		61.4	%		26,497		59.2	%		(747	)	(2.8	)%
New retail units—heavy trucks		964		2.4	%		1,288		2.9	%		(324	)	(25.2	)%
Total new retail units		26,714		63.8	%		27,785		62.1	%		(1,071	)	(3.9	)%
Used retail units		15,172		36.2	%		16,941		37.9	%		(1,769	)	(10.4	)%
Total retail units		41,886		100.0	%		44,726		100.0	%		(2,840	)	(6.3	)%
NEW UNITS SOLD (INCLUDING FLEET)		28,849					29,676					(827	)	(2.8	)%
REVENUE:
New retail—light vehicles	$	776,000		53.1	%	$	781,739		52.1	%	$	(5,739	)	(0.7	)%
New retail—heavy trucks		58,923		4.0	%		81,035		5.4	%		(22,112	)	(27.3	)%
Total new retail revenue		834,923		57.1	%		862,774		57.5	%		(27,851	)	(3.2	)%
Used retail		278,514		19.1	%		300,752		20.0	%		(22,238	)	(7.4	)%
Parts, service and collision repair		173,475		11.9	%		170,246		11.4	%		3,229		1.9	%
Finance and insurance, net		41,543		2.8	%		40,590		2.7	%		953		2.3	%
Total retail revenue		1,328,455					1,374,362					(45,907	)	(3.3	)%
Fleet		42,888		2.9	%		39,009		2.6	%		3,879		9.9	%
Wholesale		91,010		6.2	%		87,343		5.8	%		3,667		4.2	%
Total revenue	$	1,462,353		100.0	%	$	1,500,714		100.0	%	$	(38,361	)	(2.6	)%
GROSS PROFIT:
New retail—light vehicles	$	59,787		26.7	%	$	59,420		26.1	%	$	367		0.6	%
New retail—heavy trucks		2,236		1.0	%		3,124		1.4	%		(888	)	(28.4	)%
Total new retail gross profit		62,023		27.7	%		62,544		27.5	%		(521	)	(0.8	)%
Used retail		30,660		13.7	%		36,332		16.0	%		(5,672	)	(15.6	)%
Parts, service and collision repair		90,567		40.4	%		87,093		38.3	%		3,474		4.0	%
Finance and insurance, net		41,543		18.5	%		40,590		17.9	%		953		2.3	%
Total retail gross profit		224,793					226,559					(1,766	)	(0.8	)%
Fleet		686		0.3	%		1,008		0.4	%		(322	)	(31.9	)%
Wholesale		(1,425	)	(0.6	)%		(178	)	(0.1	)%		(1,247	)	(700.6	)%
Total gross profit	$	224,054		100.0	%	$	227,389		100.0	%	$	(3,335	)	(1.5	)%
Adjusted SG&A expenses	$	172,301				$	171,722				$	579		0.3	%
Adjusted SG&A expenses as a percentage of gross profit		76.9	%				75.5	%				1.4	%	1.9	%
REVENUE PER VEHICLE RETAILED:
New retail—light vehicles	$	30,136				$	29,503				$	633		2.1	%
New retail—heavy trucks		61,123					62,915					(1,792	)	(2.8	)%
Used retail		18,357					17,753					604		3.4	%
GROSS PROFIT PER VEHICLE RETAILED:
New retail—light vehicles	$	2,322				$	2,243				$	79		3.5	%
New retail—heavy trucks		2,320					2,425					(105	)	(4.3	)%
Used retail		2,021					2,145					(124	)	(5.8	)%
Finance and insurance, net		992					908					84		9.3	%
GROSS PROFIT MARGIN:
New retail—light vehicles		7.7	%				7.6	%				0.1	%	1.3	%
New retail—heavy trucks		3.8	%				3.9	%				(0.1	)%	(2.6	)%
Used retail		11.0	%				12.1	%				(1.1	)%	(9.1	)%
Parts, service and collision repair		52.2	%				51.2	%				1.0	%	2.0	%

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Asbury Automotive Group, Inc.

Selected Data

(Dollars in thousands, except per vehicle data)

(Unaudited)

	As Reported for the Nine Months Ended September 30,										Increase (Decrease)			% Change
	2007					2006
RETAIL VEHICLES SOLD:
New retail units—light vehicles		75,740		59.6	%		75,628		59.1	%		112		0.1	%
New retail units—heavy trucks		2,956		2.3	%		4,062		3.2	%		(1,106	)	(27.2	)%
Total new retail units		78,696		61.9	%		79,690		62.3	%		(994	)	(1.2	)%
Used retail units		48,480		38.1	%		48,356		37.7	%		124		0.3	%
Total retail units		127,176		100.0	%		128,046		100.0	%		(870	)	(0.7	)%
NEW UNITS SOLD (INCLUDING FLEET)		85,503					85,874					(371	)	(0.4	)%
REVENUE:
New retail—light vehicles	$	2,295,505		52.0	%	$	2,251,286		51.6	%	$	44,219		2.0	%
New retail—heavy trucks		174,623		4.0	%		247,915		5.7	%		(73,292	)	(29.6	)%
Total new retail revenue		2,470,128		56.0	%		2,499,201		57.3	%		(29,073	)	(1.2	)%
Used retail		881,458		20.0	%		859,515		19.7	%		21,943		2.6	%
Parts, service and collision repair		527,168		11.9	%		509,476		11.7	%		17,692		3.5	%
Finance and insurance, net		124,470		2.8	%		118,446		2.7	%		6,024		5.1	%
Total retail revenue		4,003,224					3,986,638					16,586		0.4	%
Fleet		139,581		3.2	%		118,908		2.7	%		20,673		17.4	%
Wholesale		270,332		6.1	%		259,734		5.9	%		10,598		4.1	%
Total revenue	$	4,413,137		100.0	%	$	4,365,280		100.0	%	$	47,857		1.1	%
GROSS PROFIT:
New retail—light vehicles	$	175,143		25.6	%	$	170,787		25.8	%	$	4,356		2.6	%
New retail—heavy trucks		8,017		1.2	%		9,670		1.5	%		(1,653	)	(17.1	)%
Total new retail gross profit		183,160		26.8	%		180,457		27.3	%		2,703		1.5	%
Used retail		101,591		14.8	%		103,892		15.7	%		(2,301	)	(2.2	)%
Parts, service and collision repair		274,146		40.0	%		257,880		38.9	%		16,266		6.3	%
Finance and insurance, net		124,470		18.2	%		118,446		17.9	%		6,024		5.1	%
Total retail gross profit		683,367					660,675					22,692		3.4	%
Fleet		2,599		0.4	%		3,090		0.5	%		(491	)	(15.9	)%
Wholesale		(1,176	)	(0.2	)%		(1,024	)	(0.3	)%		(152	)	(14.8	)%
Total gross profit	$	684,790		100.0	%	$	662,741		100.0	%	$	22,049		3.3	%
Adjusted gross profit	$	684,790				$	659,341				$	25,449		3.9	%
Adjusted SG&A expenses	$	522,858				$	502,813				$	20,045		4.0	%
Adjusted SG&A expenses as a percentage of gross profit		76.4	%				76.3	%				0.1	%	0.1	%
REVENUE PER VEHICLE RETAILED:
New retail—light vehicles	$	30,308				$	29,768				$	540		1.8	%
New retail—heavy trucks		59,074					61,033					(1,959	)	(3.2	)%
Used retail		18,182					17,775					407		2.3	%
GROSS PROFIT PER VEHICLE RETAILED:
New retail—light vehicles	$	2,312				$	2,258				$	54		2.4	%
New retail—heavy trucks		2,712					2,381					331		13.9	%
Used retail		2,096					2,148					(52	)	(2.4	)%
Finance and insurance, net		979					925					54		5.8	%
Dealership generated finance and insurance, net		979					885					94		10.6	%
GROSS PROFIT MARGIN:
New retail—light vehicles		7.6	%				7.6	%				—		—
New retail—heavy trucks		4.6	%				3.9	%				0.7	%	17.9	%
Used retail		11.5	%				12.1	%				(0.6	)%	(5.0	)%
Parts, service and collision repair		52.0	%				50.6	%				1.4	%	2.8	%

8

Asbury Automotive Group, Inc.

Selected Data

(Dollars in thousands, except per vehicle data)

(Unaudited)

	Same Store for the Nine Months Ended September 30,										Increase (Decrease)			% Change
	2007					2006
RETAIL VEHICLES SOLD:
New retail units—light vehicles		74,830		59.5	%		75,628		59.1	%		(798	)	(1.1	)%
New retail units—heavy trucks		2,956		2.4	%		4,062		3.2	%		(1,106	)	(27.2	)%
Total new retail units		77,786		61.9	%		79,690		62.3	%		(1,904	)	(2.4	)%
Used retail units		47,886		38.1	%		48,356		37.7	%		(470	)	(1.0	)%
Total retail units		125,672		100.0	%		128,046		100.0	%		(2,374	)	(1.9	)%
NEW UNITS SOLD (INCLUDING FLEET)		84,593					85,874					(1,281	)	(1.5	)%
REVENUE:
New retail—light vehicles	$	2,267,265		52.0	%	$	2,251,286		51.6	%	$	15,979		0.7	%
New retail—heavy trucks		174,623		4.0	%		247,915		5.7	%		(73,292	)	(29.6	)%
Total new retail revenue		2,441,888		56.0	%		2,499,201		57.3	%		(57,313	)	(2.3	)%
Used retail		870,647		19.9	%		859,515		19.7	%		11,132		1.3	%
Parts, service and collision repair		521,571		12.0	%		509,476		11.7	%		12,095		2.4	%
Finance and insurance, net		123,245		2.8	%		118,446		2.7	%		4,799		4.1	%
Total retail revenue		3,957,351					3,986,638					(29,287	)	(0.7	)%
Fleet		139,581		3.2	%		118,908		2.7	%		20,673		17.4	%
Wholesale		265,758		6.1	%		259,734		5.9	%		6,024		2.3	%
Total revenue	$	4,362,690		100.0	%	$	4,365,280		100.0	%	$	(2,590	)	(0.1	)%
GROSS PROFIT:
New retail—light vehicles	$	172,962		25.5	%	$	170,787		25.8	%	$	2,175		1.3	%
New retail—heavy trucks		8,017		1.2	%		9,670		1.5	%		(1,653	)	(17.1	)%
Total new retail gross profit		180,979		26.7	%		180,457		27.3	%		522		0.3	%
Used retail		100,431		14.9	%		103,892		15.7	%		(3,461	)	(3.3	)%
Parts, service and collision repair		270,943		40.0	%		257,880		38.9	%		13,063		5.1	%
Finance and insurance, net		123,245		18.2	%		118,446		17.9	%		4,799		4.1	%
Total retail gross profit		675,598					660,675					14,923		2.3	%
Fleet		2,599		0.4	%		3,090		0.5	%		(491	)	(15.9	)%
Wholesale		(1,148	)	(0.2	)%		(1,024	)	(0.3	)%		(124	)	(12.1	)%
Total gross profit	$	677,049		100.0	%	$	662,741		100.0	%	$	14,308		2.2	%
Adjusted gross profit	$	677,049				$	659,341				$	17,708		2.7	%
Adjusted SG&A expenses	$	516,181				$	502,813				$	13,368		2.7	%
Adjusted SG&A expenses as a percentage of gross profit		76.2	%				76.3	%				(0.1	)%	(0.1	)%
REVENUE PER VEHICLE RETAILED:
New retail—light vehicles	$	30,299				$	29,768				$	531		1.8	%
New retail—heavy trucks		59,074					61,033					(1,959	)	(3.2	)%
Used retail		18,182					17,775					407		2.3	%
GROSS PROFIT PER VEHICLE RETAILED:
New retail—light vehicles	$	2,311				$	2,258				$	53		2.3	%
New retail—heavy trucks		2,712					2,381					331		13.9	%
Used retail		2,097					2,148					(51	)	(2.4	)%
Finance and insurance, net		981					925					56		6.1	%
Dealership generated finance and insurance, net		981					885					96		10.8	%
GROSS PROFIT MARGIN:
New retail—light vehicles		7.6	%				7.6	%				—		—
New retail—heavy trucks		4.6	%				3.9	%				0.7	%	17.9	%
Used retail		11.5	%				12.1	%				(0.6	)%	(5.0	)%
Parts, service and collision repair		51.9	%				50.6	%				1.3	%	2.6	%

9

Asbury Automotive Group, Inc.

Selected Data

(In thousands)

(Unaudited)

	As of September 30, 2007		As of December 31, 2006
BALANCE SHEET HIGHLIGHTS:
Cash and cash equivalents	$	40,794	$	129,170
Inventories		745,428		775,313
Total current assets		1,138,020		1,293,064
Floor plan notes payable		617,187		700,777
Total current liabilities		776,251		881,055
CAPITALIZATION:
Long-term debt (including current portion)	$	491,672	$	477,154
Stockholders’ equity		587,186		611,833
Total	$	1,078,858	$	1,088,987

10

ASBURY AUTOMOTIVE GROUP, INC.

SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION

(Dollars in thousands)

(Unaudited)

Our operations during the nine months ended September 30, 2007 were impacted by (i) expenses associated with the secondary stock offerings of our former private equity owners, (ii) the retirement benefit paid to our former Chief Executive Officer and (iii) the losses associated with the extinguishment of certain of our senior subordinated notes. Our operations during nine months ended September 30, 2006 were impacted by (i) our decision to abandon certain strategic projects, (ii) expenses associated with the secondary stock offerings of our former private equity owners, (iii) the losses associated with the extinguishment of certain of our senior subordinated notes, and (iv) the one-time gain recognized on the sale of a pool of extended warranty contracts. We believe that excluding these items provides a more accurate measure of our operations for the nine months ended September 30, 2007 and 2006.

	As Reported for the Three Months Ended September 30,						Increase (Decrease)			% Change
	2007			2006
SG&A expenses	$	176,067		$	172,568		$	3,499		2.0	%
Secondary stock offering expenses		—			(846	)
Adjusted SG&A expenses	$	176,067		$	171,722		$	4,345		3.0	%
Gross profit	$	228,315		$	227,389		$	926		—	%
Adjusted SG&A expenses as a percentage of gross profit		77.1	%		75.5	%		1.6	%	2.1	%

	Same Store for the Three Months Ended September 30,						Increase (Decrease)			% Change
	2007			2006
SG&A expenses	$	172,301		$	172,568		$	(267	)	—	%
Secondary stock offering expenses		—			(846	)
Adjusted SG&A expenses	$	172,301		$	171,722		$	579		—	%
Gross profit	$	224,054		$	227,389		$	(3,335	)	(1.0	)%
Adjusted SG&A expenses as a percentage of gross profit		76.9	%		75.5	%		1.4	%	1.9	%

	As Reported for the Nine Months Ended September 30,						Increase (Decrease)			% Change
	2007			2006
SG&A expenses	$	526,078		$	505,317		$	20,761		4.0	%
Secondary stock offering expenses		(270	)		(846	)
Abandoned strategic project expenses		—			(1,658	)
Retirement benefits expense		(2,950	)		—
Adjusted SG&A expenses	$	522,858		$	502,813		$	20,045		4.0	%
Gross profit	$	684,790		$	662,741
Corporate generated F&I gain		—			(3,400	)
Adjusted gross profit	$	684,790		$	659,341		$	25,449		4.0	%
Adjusted SG&A expenses as a percentage of adjusted gross profit		76.4	%		76.3	%		0.1	%	0.1	%

11

	Same Store for the Nine Months Ended September 30,						Increase (Decrease)			% Change
	2007			2006
SG&A expenses	$	519,401		$	505,317		$	14,084		3.0	%
Secondary stock offering expenses		(270	)		(846	)
Abandoned strategic project expenses		—			(1,658	)
Retirement benefits expense		(2,950	)		—
Adjusted SG&A expenses	$	516,181		$	502,813		$	13,368		3.0	%
Gross profit	$	677,049		$	662,741
Corporate generated F&I gain		—			(3,400	)
Adjusted gross profit	$	677,049		$	659,341		$	17,708		3.0	%
Adjusted SG&A expenses as a percentage of adjusted gross profit		76.2	%		76.3	%		(0.1	)%	(0.1	)%

12

	As Reported for the Three Months Ended September 30,				Increase (Decrease)
	2007		2006					% Change
Net income	$	19,010	$	17,179	$	1,831		11	%
Discontinued operations, net of tax		210		1,211
Income from continuing operations		19,220		18,390		830		5	%
Loss on extinguishment of long-term debt, net of tax		—		571
Secondary stock offering expenses		—		846
Adjusted income from continuing operations	$	19,220	$	19,807	$	(587	)	(3	)%
Net income	$	0.57	$	0.51	$	0.06		12	%
Discontinued operations, net of tax		0.01		0.03
Income from continuing operations		0.58		0.54		0.04		7	%
Loss on extinguishment of long-term debt, net of tax		—		0.02
Secondary stock offering expenses		—		0.03
Adjusted income from continuing operations	$	0.58	$	0.59	$	(0.01	)	(2	)%
Weighted average common shares outstanding (diluted):		33,244		33,841

	As Reported for the Nine Months Ended September 30,					Increase (Decrease)			% Change
	2007		2006
Net income	$	40,002	$	48,736		$	(8,734	)	(18	)%
Discontinued operations, net of tax		2,793		2,867
Income from continuing operations		42,795		51,603			(8,808	)	(17	)%
Corporate generated F&I gain, net of tax		—		(2,125	)
Loss on extinguishment of long-term debt, net of tax		11,614		571
Abandoned strategic project expense, net of tax		—		1,036
Secondary stock offering expenses		270		846
Retirement benefits expense, net of tax		1,850		—
Adjusted income from continuing operations	$	56,529	$	51,931		$	4,598		9	%
Net income	$	1.19	$	1.44		$	(0.25	)	(17	)%
Discontinued operations, net of tax		0.08		0.08
Income from continuing operations		1.27		1.52			(0.25	)	(16	)%
Corporate generated F&I gain, net of tax		—		(0.06	)
Loss on extinguishment of long-term debt, net of tax		0.35		0.02
Abandoned strategic project expense, net of tax		—		0.03
Secondary stock offering expenses		0.01		0.02
Retirement benefits expense, net of tax		0.05		—
Adjusted income from continuing operations	$	1.68	$	1.53		$	0.15		10	%
Weighted average common shares outstanding (diluted):		33,693		33,853

13

Asbury Automotive Group, Inc.

Supplemental Disclosures Regarding Non-GAAP Financial Information

(In thousands, except vehicle and per vehicle date)

(Unaudited)

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

	As Reported for the Nine Months Ended September 30,					Same Store for the Nine Months Ended September 30,
	2007		2006			2007		2006
RECONCILIATION OF FINANCE AND INSURANCE GROSS PROFIT TO DEALERSHIP GENERATED FINANCE AND INSURANCE GROSS PROFIT:
Finance and insurance, net	$	124,470	$	118,446		$	123,245	$	118,446
Less: corporate generated finance and insurance		—		(1,685	)		—		(1,685	)
Less: corporate generated finance and insurance gain		—		(3,400	)		—		(3,400	)
Dealership generated finance and insurance, net	$	124,470	$	113,361		$	123,245	$	113,361
RETAIL VEHICLES SOLD:
New retail units		78,696		79,690			77,786		79,690
Used retail units		48,480		48,356			47,886		48,356
Total retail units		127,176		128,046			125,672		128,046
Finance and insurance PVR, net	$	979	$	925		$	981	$	925
Dealership generated finance and insurance PVR, net	$	979	$	885		$	981	$	885

14