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

Exhibit 99.1

	Investors May Contact:
	Keith Style
	Vice President, Finance and Investor Relations
	(212) 885-2520
	investor@asburyauto.com
	Reporters May Contact:
	Stephanie Lowenthal
	RF|Binder Partners
	(212) 994-7619
	Stephanie.Lowenthal@RFBinder.com

Asbury Automotive Group Reports Fourth Quarter and

Full Year 2007 Financial Results

New York, NY, February 21, 2008 – 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 fourth quarter and year ended December 31, 2007.

Adjusted income from continuing operations for the fourth quarter was $12.7 million, or $0.39 per diluted share, compared to $14.6 million, or $0.43 per diluted share, in the fourth quarter of last year. These results have been adjusted for non-core items, as disclosed in the attached tables, including a $0.03 per diluted share increase to our reserves during the quarter for legal claims arising in, and before, the year 2003, and a $0.03 per dilutive share net benefit from non-core items in prior year’s quarter. Income from continuing operations for the fourth quarter was $11.5 million, or $0.36 per diluted share, compared with $15.8 million, or $0.46 per diluted share, a year ago. Net income for the quarter totaled $11.0 million, or $0.34 per diluted share, compared to $12.0 million, or $0.35 per diluted share, in the fourth quarter of last year.

President and CEO, Charles R. Oglesby, said, “Asbury faced a very challenging environment for vehicle sales – both new and used – in the fourth quarter, with notable softness in our key Florida markets. Our service businesses again performed well, as fixed operations delivered same-store revenue growth of 4% and F&I income reached a record level of $1,057 per vehicle retailed. We also made significant progress during the quarter in adjusting expenses to the current market conditions, by reducing our advertising, staffing levels and used vehicle inventories.”

Income from continuing operations, adjusted for non-core items, for the year increased 5% to $69.5 million, or $2.09 per diluted share, from $66.2 million, or $1.94 per diluted share, in 2006 (refer to attached tables for reconciliation of non-core items). For the year, income from continuing operations was $54.3 million, or $1.63 per diluted share, compared with $67.1 million, or $1.97 per diluted share, in 2006. Net income for the year totaled $51.0 million, or $1.53 per diluted share, compared to $60.7 million, or $1.78 per diluted share, last year.

Mr. Oglesby continued, “For the full year, diluted earnings per share, excluding non-core items, increased 8%, a solid performance in view of the retail environment. We achieved significant cost savings from our debt refinancing early in the year, and began implementing a new dealership technology platform that will reduce expenses and drive efficiency gains in the years ahead. We also successfully stepped up our acquisition program, acquiring dealerships with approximately $350 million in annualized revenues – well above our target of $200 million.”

J. Gordon Smith, Senior Vice President and CFO, commented on the Company’s outlook for 2008, adding, “While retail market conditions are likely to remain difficult throughout 2008, we believe our expense reductions have positioned us well. We are establishing an initial guidance range for 2008 diluted earnings per share from continuing operations of between $1.80 and $2.00. This guidance is based on a range for U.S. new vehicle unit sales of between 15.3 million and 15.5 million for the full year, as well as a projected decline in our same store used unit volumes of between 5% and 8%.”

On January 31, 2008, Asbury’s board of directors declared a quarterly cash dividend of $0.225 per share of the Company’s outstanding common stock payable on February 29, 2008, to stockholders of record as of the close of business on February 8, 2008.

Asbury will host a conference call to discuss its fourth 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 (877) 852-6573 (domestic), or (719) 325-4805 (international); no access code is necessary. Callers should dial in approximately 5 to 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 89 retail auto stores, encompassing 121 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, specifically our expectations of (i) the future effects of our new technology platform, (ii) next year’s range for U.S. light vehicle unit sales and (iii) our 2008 same-store used vehicle units sales. 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 and implement new technologies. 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.

[Tables Follow]

Asbury Automotive Group, Inc.

Consolidated Statements of Income

(In thousands, except per share data)

(Unaudited)

	For the Three Months Ended December 31,						For the Twelve Months Ended December 31,
	2007			2006			2007			2006
REVENUES:
New vehicle	$	802,006		$	833,513		$	3,385,225		$	3,425,074
Used vehicle		326,405			335,702			1,462,920			1,443,899
Parts, service and collision repair		178,720			164,417			702,633			670,520
Finance and insurance, net		39,066			37,707			162,189			154,894
Total revenues		1,346,197			1,371,339			5,712,967			5,694,387
COST OF SALES:
New vehicle		746,392			772,667			3,145,107			3,182,337
Used vehicle		301,611			304,717			1,338,924			1,310,852
Parts, service and collision repair		87,836			80,199			339,492			330,420
Total cost of sales		1,135,839			1,157,583			4,823,523			4,823,609
GROSS PROFIT		210,358			213,756			889,444			870,778
OPERATING EXPENSES:
Selling, general and administrative		(168,025	)		(165,812	)		(685,632	)		(663,856	)
Depreciation and amortization		(5,526	)		(5,069	)		(21,492	)		(20,061	)
Other operating income (expense), net		1,231			2,765			(958	)		1,485
Income from operations		38,038			45,640			181,362			188,346
OTHER INCOME (EXPENSE):
Floor plan interest expense		(10,445	)		(10,868	)		(43,107	)		(40,533	)
Other interest expense		(9,207	)		(10,917	)		(39,245	)		(44,185	)
Interest income		429			1,841			4,336			5,111
Loss on extinguishment of long-term debt		—			(230	)		(18,523	)		(1,144	)
Total other expense, net		(19,223	)		(20,174	)		(96,539	)		(80,751	)
Income before income taxes		18,815			25,466			84,823			107,595
INCOME TAX EXPENSE		7,326			9,709			30,537			40,506
INCOME FROM CONTINUING OPERATIONS		11,489			15,757			54,286			67,089
DISCONTINUED OPERATIONS, net of tax		(536	)		(3,744	)		(3,331	)		(6,340	)
NET INCOME	$	10,953		$	12,013		$	50,955		$	60,749
BASIC EARNINGS PER COMMON SHARE:
Continuing operations	$	0.36		$	0.47		$	1.67		$	2.02
Discontinued operations		(0.01	)		(0.11	)		(0.10	)		(0.19	)
Net income	$	0.35		$	0.36		$	1.57		$	1.83
DILUTED EARNINGS PER COMMON SHARE:
Continuing operations	$	0.36		$	0.46		$	1.63		$	1.97
Discontinued operations		(0.02	)		(0.11	)		(0.10	)		(0.19	)
Net income	$	0.34		$	0.35		$	1.53		$	1.78
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic		31,599			33,486			32,463			33,187
Diluted		32,243			34,194			33,340			34,067

Asbury Automotive Group, Inc.

Selected Data

(Dollars in thousands, except per vehicle data)

(Unaudited)

	As reported for the Three Months Ended December 31,										Increase (Decrease)			% Change
	2007					2006
RETAIL VEHICLES SOLD:
New retail units - light vehicles		23,208		62.8	%		22,703		58.8	%		505		2.2	%
New retail units - heavy trucks		669		1.8	%		1,504		3.9	%		(835	)	(55.5	)%
Total new retail units		23,877		64.6	%		24,207		62.7	%		(330	)	(1.4	)%
Used retail units		13,089		35.4	%		14,423		37.3	%		(1,334	)	(9.2	)%
Total retail units		36,966		100.0	%		38,630		100.0	%		(1,664	)	(4.3	)%
NEW UNITS SOLD (INCLUDING FLEET)		25,315					25,882					(567	)	(2.2	)%
REVENUE:
New retail - light vehicles	$	728,232		54.1	%	$	714,783		52.1	%	$	13,449		1.9	%
New retail - heavy trucks		41,751		3.1	%		85,368		6.2	%		(43,617	)	(51.1	)%
Total new retail		769,983		57.2	%		800,151		58.3	%		(30,168	)	(3.8	)%
Used retail		244,768		18.1	%		257,776		18.9	%		(13,008	)	(5.0	)%
Parts, service and collision repair		178,720		13.3	%		164,417		12.0	%		14,303		8.7	%
Finance and insurance, net		39,066		2.9	%		37,707		2.7	%		1,359		3.6	%
Total retail revenue		1,232,537					1,260,051					(27,514	)	(2.2	)%
Fleet		32,023		2.4	%		33,362		2.4	%		(1,339	)	(4.0	)%
Wholesale		81,637		6.1	%		77,926		5.7	%		3,711		4.8	%
Total revenue	$	1,346,197		100.0	%	$	1,371,339		100.0	%	$	(25,142	)	(1.8	)%
GROSS PROFIT
New retail - light vehicles	$	52,816		25.1	%	$	56,227		26.3	%	$	(3,411	)	(6.1	)%
New retail - heavy trucks		2,247		1.1	%		3,666		1.7	%		(1,419	)	(38.7	)%
Total new retail		55,063		26.2	%		59,893		28.0	%		(4,830	)	(8.1	)%
Used retail		26,325		12.5	%		31,140		14.6	%		(4,815	)	(15.5	)%
Parts, service and collision repair		90,884		43.1	%		84,218		39.5	%		6,666		7.9	%
Finance and insurance, net		39,066		18.6	%		37,707		17.6	%		1,359		3.6	%
Total retail gross profit		211,338					212,958					(1,620	)	(0.8	)%
Fleet		551		0.3	%		952		0.4	%		(401	)	(42.1	)%
Wholesale		(1,531	)	(0.7	)%		(154	)	(0.1	)%		(1,377	)	(894.2	)%
Total gross profit	$	210,358		100.0	%	$	213,756		100.0	%	$	(3,398	)	(1.6	)%
Adjusted SG&A expenses	$	166,142				$	165,812				$	330		0.2	%
Adjusted SG&A expenses as a percentage of gross profit		79.0	%				77.6	%				1.4	%	1.8	%
REVENUE PER VEHICLE RETAILED:
New retail - light vehicles	$	31,378				$	31,484				$	(106	)	(0.3	)%
New retail - heavy trucks		62,408					56,761					5,647		9.9	%
Used retail		18,700					17,873					827		4.6	%
GROSS PROFIT PER VEHICLE RETAILED:
New retail - light vehicles	$	2,276				$	2,477				$	(201	)	(8.1	)%
New retail - heavy trucks		3,359					2,438					921		37.8	%
Used retail		2,011					2,159					(148	)	(6.9	)%
Finance and insurance, net		1,057					976					81		8.3	%

	As reported for the Three Months Ended December 31,				Increase (Decrease)		% Change
	2007		2006
GROSS PROFIT MARGIN:
New retail - light vehicles	7.3	%	7.9	%	(0.6	)%	(7.6	)%
New retail - heavy trucks	5.4	%	4.3	%	1.1	%	25.6	%
Used retail	10.8	%	12.1	%	(1.3	)%	(10.7	)%
Parts, service and collision repair	50.9	%	51.2	%	(0.3	)%	(0.6	)%

Asbury Automotive Group, Inc.

Selected Data

(Dollars in thousands, except per vehicle data)

(Unaudited)

	Same Store for the Three Months Ended December 31,										Increase (Decrease)			% Change
	2007					2006
RETAIL VEHICLES SOLD:
New retail units - light vehicles		22,010		62.4	%		22,703		58.8	%		(693	)	(3.1	)%
New retail units - heavy trucks		669		2.0	%		1,504		3.9	%		(835	)	(55.5	)%
Total new retail units		22,679		64.4	%		24,207		62.7	%		(1,528	)	(6.3	)%
Used retail units		12,604		35.6	%		14,423		37.3	%		(1,819	)	(12.6	)%
Total retail units		35,283		100.0	%		38,630		100.0	%		(3,347	)	(8.7	)%
NEW UNITS SOLD (INCLUDING FLEET)		24,117					25,882					(1,765	)	(6.8	)%
REVENUE:
New retail - light vehicles	$	687,851		53.7	%	$	714,783		52.1	%	$	(26,932	)	(3.8	)%
New retail - heavy trucks		41,751		3.3	%		85,368		6.2	%		(43,617	)	(51.1	)%
Total new retail		729,602		57.0	%		800,151		58.3	%		(70,549	)	(8.8	)%
Used retail		235,109		18.3	%		257,776		18.9	%		(22,667	)	(8.8	)%
Parts, service and collision repair		170,364		13.3	%		164,417		12.0	%		5,947		3.6	%
Finance and insurance, net		37,633		2.9	%		37,707		2.7	%		(74	)	(0.2	)%
Total retail revenue		1,172,708					1,260,051					(87,343	)	(6.9	)%
Fleet		32,024		2.5	%		33,362		2.4	%		(1,338	)	(4.0	)%
Wholesale		76,353		6.0	%		77,926		5.7	%		(1,573	)	(2.0	)%
Total revenue	$	1,281,085		100.0	%	$	1,371,339		100.0	%	$	(90,254	)	(6.6	)%
GROSS PROFIT
New retail - light vehicles	$	49,591		24.7	%	$	56,227		26.3	%	$	(6,636	)	(11.8	)%
New retail - heavy trucks		2,247		1.1	%		3,666		1.7	%		(1,419	)	(38.7	)%
Total new retail		51,838		25.8	%		59,893		28.0	%		(8,055	)	(13.4	)%
Used retail		25,284		12.6	%		31,140		14.6	%		(5,856	)	(18.8	)%
Parts, service and collision repair		86,654		43.2	%		84,218		39.5	%		2,436		2.9	%
Finance and insurance, net		37,633		18.8	%		37,707		17.6	%		(74	)	(0.2	)%
Total retail gross profit		201,409					212,958					(11,549	)	(5.4	)%
Fleet		552		0.3	%		952		0.4	%		(400	)	(42.0	)%
Wholesale		(1,417	)	(0.7	)%		(154	)	(0.1	)%		(1,263	)	(820.1	)%
Total gross profit	$	200,544		100.0	%	$	213,756		100.0	%	$	(13,212	)	(6.2	)%
Adjusted SG&A expenses	$	158,271				$	165,812				$	(7,541	)	(4.5	)%
Adjusted SG&A expenses as a percentage of gross profit		78.9	%				77.6	%				1.3	%	1.7	%
REVENUE PER VEHICLE RETAILED:
New retail - light vehicles	$	31,252				$	31,484				$	(232	)	(0.7	)%
New retail - heavy trucks		62,408					56,761					5,647		9.9	%
Used retail		18,654					17,873					781		4.4	%
GROSS PROFIT PER VEHICLE RETAILED:
New retail - light vehicles	$	2,253				$	2,477				$	(224	)	(9.0	)%
New retail - heavy trucks		3,359					2,438					921		37.8	%
Used retail		2,006					2,159					(153	)	(7.1	)%

	Same Store for the Three Months Ended December 31,				Increase (Decrease)		% Change
	2007		2006
Finance and insurance, net	1,067		976		91		9.3	%
GROSS PROFIT MARGIN:
New retail - light vehicles	7.2	%	7.9	%	(0.7	)%	(8.9	)%
New retail - heavy trucks	5.4	%	4.3	%	1.1	%	25.6	%
Used retail	10.8	%	12.1	%	(1.3	)%	(10.7	)%
Parts, service and collision repair	50.9	%	51.2	%	(0.3	)%	(0.6	)%

Asbury Automotive Group, Inc.

Selected Data

(Dollars in thousands, except per vehicle data)

(Unaudited)

	As reported for the Twelve Months Ended December 31,										Increase (Decrease)			% Change
	2007					2006
RETAIL VEHICLES SOLD:
New retail units - light vehicles		98,246		60.4	%		97,534		59.0	%		712		0.7	%
New retail units - heavy trucks		3,625		2.2	%		5,566		3.4	%		(1,941	)	(34.9	)%
Total new retail units		101,871		62.6	%		103,100		62.4	%		(1,229	)	(1.2	)%
Used retail units		60,764		37.4	%		62,132		37.6	%		(1,368	)	(2.2	)%
Total retail units		162,635		100.0	%		165,232		100.0	%		(2,597	)	(1.6	)%
NEW UNITS SOLD (INCLUDING FLEET)		109,627					110,601					(974	)	(0.9	)%
REVENUE:
New retail - light vehicles	$	3,006,306		52.6	%	$	2,945,950		51.7	%	$	60,356		2.0	%
New retail - heavy trucks		216,374		3.8	%		333,283		5.9	%		(116,909	)	(35.1	)%
Total new retail		3,222,680		56.4	%		3,279,233		57.6	%		(56,553	)	(1.7	)%
Used retail		1,113,828		19.6	%		1,108,474		19.4	%		5,354		0.5	%
Parts, service and collision repair		702,633		12.3	%		670,520		11.8	%		32,113		4.8	%
Finance and insurance, net		162,189		2.8	%		154,894		2.7	%		7,295		4.7	%
Total retail revenue		5,201,330					5,213,121					(11,791	)	(0.2	)%
Fleet		162,545		2.8	%		145,841		2.6	%		16,704		11.5	%
Wholesale		349,092		6.1	%		335,425		5.9	%		13,667		4.1	%
Total revenue	$	5,712,967		100.0	%	$	5,694,387		100.0	%	$	18,580		0.3	%
GROSS PROFIT
New retail - light vehicles	$	226,738		25.5	%	$	225,371		25.9	%	$	1,367		0.6	%
New retail - heavy trucks		10,263		1.2	%		13,336		1.5	%		(3,073	)	(23.0	)%
Total new retail		237,001		26.7	%		238,707		27.4	%		(1,706	)	(0.7	)%
Used retail		126,625		14.2	%		134,117		15.4	%		(7,492	)	(5.6	)%
Parts, service and collision repair		363,141		40.8	%		340,100		39.0	%		23,041		6.8	%
Finance and insurance, net		162,189		18.2	%		154,894		17.8	%		7,295		4.7	%
Total retail gross profit		888,956					867,818					21,138		2.4	%
Fleet		3,117		0.4	%		4,030		0.5	%		(913	)	(22.7	)%
Wholesale		(2,629	)	(0.3	)%		(1,070	)	(0.1	)%		(1,559	)	(145.7	)%
Total gross profit	$	889,444		100.0	%	$	870,778		100.0	%	$	18,666		2.1	%
Adjusted gross profit	$	889,444				$	867,378				$	22,066		21.2	%
Adjusted SG&A expenses	$	683,121				$	663,856				$	19,265		2.9	%
Adjusted SG&A expenses as a percentage of adjusted gross profit		76.8	%				76.5	%				0.3	%	0.4	%
REVENUE PER VEHICLE RETAILED:
New retail - light vehicles	$	30,600				$	30,204				$	396		1.3	%
New retail - heavy trucks		59,689					59,878					(189	)	(0.3	)%
Used retail		18,330					17,841					489		2.7	%
GROSS PROFIT PER VEHICLE RETAILED:
New retail - light vehicles	$	2,308				$	2,311				$	(3	)	(0.1	)%

	As reported for the Twelve Months Ended December 31,				Increase (Decrease)		% Change
	2007		2006
New retail - heavy trucks	2,831		2,396		435		18.2	%
Used retail	2,084		2,159		(75	)	(3.5	)%
Finance and insurance, net	997		937		60		6.4	%
GROSS PROFIT MARGIN:
New retail - light vehicles	7.5	%	7.7	%	(0.2	)%	(2.6	)%
New retail - heavy trucks	4.7	%	4.0	%	0.7	%	17.5	%
Used retail	11.4	%	12.1	%	(0.7	)%	(5.8	)%
Parts, service and collision repair	51.7	%	50.7	%	1.0	%	2.0	%

Asbury Automotive Group, Inc.

Selected Data

(Dollars in thousands, except per vehicle data)

(Unaudited)

	Same Store for the Twelve Months Ended December 31,										Increase (Decrease)			% Change
	2007					2006
RETAIL VEHICLES SOLD:
New retail units - light vehicles		96,138		60.3	%		97,534		59.0	%		(1,396	)	(1.4	)%
New retail units - heavy trucks		3,625		2.3	%		5,566		3.4	%		(1,941	)	(34.9	)%
Total new retail units		99,763		62.6	%		103,100		62.4	%		(3,337	)	(3.2	)%
Used retail units		59,685		37.4	%		62,132		37.6	%		(2,447	)	(3.9	)%
Total retail units		159,448		100.0	%		165,232		100.0	%		(5,784	)	(3.5	)%
NEW UNITS SOLD (INCLUDING FLEET)		107,519					110,601					(3,082	)	(2.8	)%
REVENUE:
New retail - light vehicles	$	2,937,685		52.5	%	$	2,945,950		51.7	%	$	(8,265	)	(0.3	)%
New retail - heavy trucks		216,374		3.9	%		333,283		5.9	%		(116,909	)	(35.1	)%
Total new retail		3,154,059		56.4	%		3,279,233		57.6	%		(125,174	)	(3.8	)%
Used retail		1,093,358		19.4	%		1,108,474		19.4	%		(15,116	)	(1.4	)%
Parts, service and collision repair		688,680		12.3	%		670,520		11.8	%		18,160		2.7	%
Finance and insurance, net		159,531		2.9	%		154,894		2.7	%		4,637		3.0	%
Total retail revenue		5,095,628					5,213,121					(117,493	)	(2.3	)%
Fleet		162,545		2.9	%		145,841		2.6	%		16,704		11.5	%
Wholesale		339,234		6.1	%		335,425		5.9	%		3,809		1.1	%
Total revenue	$	5,597,407		100.0	%	$	5,694,387		100.0	%	$	(96,980	)	(1.7	)%
GROSS PROFIT
New retail - light vehicles	$	221,333		25.4	%	$	225,371		25.9	%	$	(4,038	)	(1.8	)%
New retail - heavy trucks		10,263		1.2	%		13,336		1.5	%		(3,073	)	(23.0	)%
Total new retail		231,596		26.6	%		238,707		27.4	%		(7,111	)	(3.0	)%
Used retail		124,424		14.3	%		134,117		15.4	%		(9,693	)	(7.2	)%
Parts, service and collision repair		355,709		40.7	%		340,100		39.0	%		15,609		4.6	%
Finance and insurance, net		159,531		18.3	%		154,894		17.8	%		4,637		3.0	%
Total retail gross profit		871,260					867,818					3,442		0.4	%
Fleet		3,117		0.4	%		4,030		0.5	%		(913	)	(22.7	)%
Wholesale		(2,487	)	(0.3	)%		(1,070	)	(0.1	)%		(1,417	)	(132.4	)%
Total gross profit	$	871,890		100.0	%	$	870,778		100.0	%	$	1,112		0.1	%
Adjusted gross profit	$	871,890				$	867,378				$	4,512		0.5	%
Adjusted SG&A expenses	$	668,575				$	663,856				$	4,719		0.7	%
Adjusted SG&A expenses as a percentage of adjusted gross profit		76.7	%				76.5	%				0.2	%	0.3	%
REVENUE PER VEHICLE RETAILED:
New retail - light vehicles	$	30,557				$	30,204				$	353		1.2	%
New retail - heavy trucks		59,689					59,878					(189	)	(0.3	)%
Used retail		18,319					17,841					478		2.7	%
GROSS PROFIT PER VEHICLE RETAILED:
New retail - light vehicles	$	2,302				$	2,311				$	(9	)	(0.4	)%

	Same Store for the Twelve Months Ended December 31,				Increase (Decrease)		% Change
	2007		2006
New retail - heavy trucks	2,831		2,396		435		18.2	%
Used retail	2,085		2,159		(74	)	(3.4	)%
Finance and insurance, net	1,001		937		64		6.8	%
GROSS PROFIT MARGIN:
New retail - light vehicles	7.5	%	7.7	%	(0.2	)%	(2.6	)%
New retail - heavy trucks	4.7	%	4.0	%	0.7	%	17.5	%
Used retail	11.4	%	12.1	%	(0.7	)%	(5.8	)%
Parts, service and collision repair	51.7	%	50.7	%	1.0	%	2.0	%

Asbury Automotive Group, Inc.

Selected Data

(dollars in thousands except per share data)

(Unaudited)

	December 31, 2007		December 31, 2006
BALANCE SHEET HIGHLIGHTS:
Cash and cash equivalents	$	53,354	$	129,170
Inventories		769,992		775,313
Total current assets		1,192,422		1,293,064
Floor plan notes payable		673,951		700,777
Total current liabilities		871,667		881,055
CAPITALIZATION:
Long-term debt (including current portion)	$	475,587	$	455,875
Stockholders’ equity		584,225		611,833
Total	$	1,059,812	$	1,067,708

ASBURY AUTOMOTIVE GROUP, INC.

SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION

(In thousands, except vehicle and per vehicle data)

(Unaudited)

The following operating performance measures (i) dealership generated F&I gross profit PVR, (ii) adjusted SG&A expenses as a percentage of adjusted gross profit and (iii) adjusted income from continuing operations, are not measures of operating performance under U.S. generally accepted accounting principles (“GAAP”) and should not be considered as an alternative or substitute for GAAP profitability measures such as cash provided by operating activities, F&I gross profit PVR, SG&A as percentage of gross profit and income from continuing operations. These non-GAAP operating performance measures have material limitations and as a result should be evaluated in conjunction with the directly comparable GAAP measure. One limitation is that these non-GAAP measures are not defined by GAAP and our definition of each measure may differ from and therefore may not be comparable to similarly titled measures used by other companies, thereby limiting its usefulness as a comparative measure. Other limitations of these non-GAAP measures are discussed below. Investors should not consider the non-GAAP measures in isolation, or as a substitute for analysis of our operating results as reported under GAAP.

We evaluate our F&I performance on a PVR basis by dividing our total F&I gross profit by the number of retail vehicles sold during the period. During 2003, we renegotiated a contract with one of our third-party F&I product providers, which resulted in the recognition of income that was not attributable to retail vehicles sold during the year. We believe that dealership generated F&I, which excludes the additional revenue derived from contracts negotiated by our corporate office, provides a measure of our F&I operating performance as used by management to operate the business. However, this non-GAAP measure has material limitations although we believe the recognition of corporate generated F&I gross profit is infrequent and that we do not expect to recognize corporate generated F&I gross profit in the future, we cannot assure you that we will not recognize similar amounts of F&I gross profit in the future.

	As Reported for the Twelve Months Ended December 31,					Same Store for the Twelve Months Ended December 31,
	2007		2006			2007		2006
RECONCILIATION OF FINANCE AND INSURANCE GROSS PROFIT TO DEALERSHIP GENERATED FINANCE AND INSURANCE GROSS PROFIT:
Finance and insurance, net	$	162,189	$	154,894		$	159,531	$	154,894
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	$	162,189	$	149,809		$	159,531	$	149,809
RETAIL VEHICLES SOLD:
New retail units		101,871		103,100			99,763		103,100
Used retail units		60,764		62,132			59,685		62,132
Total retail units		162,635		165,232			159,448		165,232
Finance and insurance PVR, net	$	997	$	937		$	1,001	$	937
Dealership generated finance and insurance PVR, net	$	997	$	907		$	1,001	$	907

Asbury Automotive Group, Inc.

Supplemental Disclosures Regarding NON-GAAP Financial Information

(In thousands, except vehicle and per vehicle data)

(Unaudited)

Our operations during the twelve months ended December 31, 2007 were impacted by legal settlements expense associated with cases pending prior to 2001. Our operations during the twelve months ended December 31, 2006 were impacted by the sale of our remaining interest in a pool of extended service contracts. We believe that an alternative comparison, as used by management to compare actual results to forecasted results, of our SG&A as a percentage of adjusted gross profit can be made by adjusting for these items based on the fact that we believe these items are not core dealership operating items and should not be considered when forecasting our future results.

	As Reported for the Three Months Ended December 31,						Increase (Decrease)			% Change
	2007			2006
SG&A expenses	$	168,025		$	165,812		$	2,213		1	%
Legal settlements expense		(1,883	)		—
Adjusted SG&A expenses	$	166,142		$	165,812		$	330		—
Gross profit	$	210,358		$	213,756		$	(3,398	)	(2	)%
Adjusted SG&A expenses as a percentage of gross profit		79.0	%		77.6	%		1.4	%	1.8	%

	Same Store for the Three Months Ended December 31,						Increase (Decrease)			% Change
	2007			2006
SG&A expenses	$	160,154		$	165,812		$	(5,658	)	(3	)%
Legal settlements expense		(1,883	)		—
Adjusted SG&A expenses	$	158,271		$	165,812		$	(7,541	)	(5	)%
Gross profit	$	200,544		$	213,756		$	(13,212	)	(6	)%
Adjusted SG&A expenses as a percentage of gross profit		78.9	%		77.6	%		1.3	%	1.7	%

	As Reported for the Twelve Months Ended December 31,						Increase (Decrease)			% Change
	2007			2006
SG&A expenses	$	685,632		$	663,856		$	21,776		3	%
Legal settlements expense		(2,511	)		—
Adjusted SG&A expenses	$	683,121		$	663,856		$	19,265		3	%
Gross profit	$	889,444		$	870,778
Corporate generated F&I gain		—			(3,400	)
Adjusted gross profit	$	889,444		$	867,378		$	22,066		3	%
Adjusted SG&A expenses as a percentage of adjusted gross profit		76.8	%		76.5	%		0.3	%	0.4	%

	Same Store for the Twelve Months Ended December 31,						Increase (Decrease)			% Change
	2007			2006
SG&A expenses	$	671,086		$	663,856		$	7,230		1	%
Legal settlements expense		(2,511	)		—
Adjusted SG&A expenses	$	668,575		$	663,856		$	4,719		1	%
Gross profit	$	871,890		$	870,778
Corporate generated F&I gain		—			(3,400	)
Adjusted gross profit	$	871,890		$	867,378			4,512		1	%
Adjusted SG&A expenses as a percentage of adjusted gross profit		76.7	%		76.5	%		0.2	%	0.3	%

Asbury Automotive Group, Inc.

Supplemental Disclosures Regarding NON-GAAP Financial Information

(In thousands, except vehicle and per vehicle data)

(Unaudited)

Our income from continuing operations during 2007 was impacted by (i) retirement benefits expense associated with the retirement of our former CEO, (ii) expenses related to a secondary offering for which we did not receive any proceeds, (iii) a loss on extinguishment of long-term debt, and (iv) legal settlements expense associated with cases pending since prior to 2001. Our income from continuing operations during 2006 was impacted by (i) the sale of our remaining interest in a pool of extended service contracts, (ii) a gain recognized on the sale of a franchise in which the dealership facility was retained, (iii) our decision to abandon certain strategic projects, (iv) expenses related to the extinguishment of long-term debt and (v) expenses related to two secondary stock offerings. We believe that an alternative comparison of our income from continuing operations, as used by management to compare actual results to forecasted results, can be made by adjusting for these items based on the fact that we believe these items are not core dealership operating items and should not be considered when forecasting our future results.

	As Reported for the Three Months Ended December 31,					Increase (Decrease)			% Change
	2007		2006
Net income	$	10,953	$	12,013		$	(1,060	)	(9	)%
Discontinued operations, net of tax		536		3,744
Income from continuing operations		11,489		15,757			(4,268	)	(27	)%
Gain on sale of franchise, net of tax		—		(1,565	)
Loss on extinguishment of long-term debt, net of tax				144
Secondary offering expenses*		—		227
Legal settlements expense, net of tax		1,177
Adjusted income from continuing operations	$	12,666	$	14,563		$	(1,897	)	(13	)%
Net Income	$	0.34	$	0.35		$	(0.01	)	(3	)%
Discontinued operations, net of tax		0.02		0.11
Income from continuing operations		0.36		0.46			(0.10	)	(22	)%
Adjusting items		0.03		(0.03	)
Adjusted income from continuing operations	$	0.39	$	0.43		$	(0.04	)	(9	)%
Weighted average common shares outstanding (diluted):		32,243		34,194

* Secondary offering expenses are not deductible for tax purposes; therefore, no tax benefit has been reflected.

	As Reported for the Twelve Months Ended December 31,					Increase (Decrease)			% Change
	2007		2006
Net income	$	50,955	$	60,749		$	(9,794	)	(16	)%
Discontinued operations, net of tax		3,331		6,340
Income from continuing operations		54,286		67,089			(12,803	)	(19	)%
Corporate generated F&I gain, net of tax		—		(2,130	)
Gain on sale of franchise, net of tax		—		(1,565	)
Loss on extinguishment of long-term debt, net of tax		11,577		717
Abandoned strategic project expense, net of tax		—		1,039
Secondary offering expenses*		270		1,073
Retirement benefits expense, net of tax		1,844		—
Legal settlements expense, net of tax		1,569		—
Adjusted income from continuing operations	$	69,546	$	66,223		$	3,323		5	%

	As Reported for the Twelve Months Ended December 31,					Increase (Decrease)			% Change
	2007		2006
Net income	$	1.53	$	1.78		$	(0.25	)	(14	)%
Discontinued operations, net of tax		0.10		0.19
Income from continuing operations		1.63		1.97
Adjusting items		0.46		(0.03	)
Adjusted income from continuing operations	$	2.09	$	1.94		$	0.15		8	%
Weighted average common shares outstanding (diluted):		33,340		34,067

* Secondary offering expenses are not deductible for tax purposes; therefore, no tax benefit has been reflected.

Asbury Autogroup

Select Data - Brand Mix

Percent of Light Vehicle New Retail Unit Sales

	For the Three Months Ended December 31,				For the Twelve Months Ended December 31,
	2007		2006		2007		2006
Honda/Acura	34	%	33	%	34	%	34	%
Nissan/Infiniti	18	%	18	%	19	%	18	%
Toyota/Lexus	14	%	16	%	15	%	15	%
Ford	9	%	9	%	10	%	10	%
General Motors	6	%	7	%	6	%	7	%
BMW/Mini	6	%	5	%	5	%	4	%
Mercedes	5	%	6	%	5	%	5	%
Chrysler	4	%	4	%	4	%	4	%
Other	4	%	2	%	2	%	3	%
	100	%	100	%	100	%	100	%