Investors May Contact:
Stacey Yonkus
Director, Investor Relations
(212) 885-2512
investor@asburyauto.com
Reporters May Contact:
David Shein
RFBinder Partners
(212) 994-7514
David.Shein@RFBinder.com
Asbury Automotive Group Reports Third Quarter Financial Results
New York, NY, October 28, 2004 - 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 quarter ended September 30, 2004.
Net income from continuing operations was $13.0 million for the third quarter of
2004, or $0.40 per diluted share, compared with $16.7 million, or $0.51 per
diluted share, in the prior year quarter. Net income was $12.1 million, or $0.37
per diluted share, compared with $16.2 million, or $0.50 per diluted share, in
the prior year period. For the first nine months of 2004, net income from
continuing operations was $38.7 million, or $1.18 per diluted share, compared
with $38.3 million, or $1.17 per diluted share, a year ago. Net income for the
first nine months was $37.2 million, or $1.14 per diluted share, compared with
$35.6 million, or $1.09 per diluted share, in the corresponding period last
year.
As previously reported, four major hurricanes during the quarter had a
significant impact on the Company's Florida operations, which accounted for
approximately 43 percent of Asbury's operating income in the third quarter of
2003. The operating income of the Company's Florida operations in the third
quarter of 2004 was down approximately 30 percent and income from continuing
operations decreased $0.10 per share from a year ago, due in large part to the
severe weather experienced during the quarter.
Other financial highlights for the third quarter of 2004, as compared to the
prior year period, included:
o Total revenue for the quarter was approximately $1.4 billion, up 11.8
percent. Total gross profit was $208.2 million, a 9.2 percent increase.
Excluding results at the Company's two Florida platforms, total revenue and
gross profit were up 18.5 percent and 16.7 percent, respectively.
o Same-store retail revenue (excluding fleet and wholesale business)
increased 0.6 percent, while same-store retail gross profit decreased 0.7
percent. Excluding results in Florida, same-store retail revenue and gross
profit were up 2.9 percent and 1.6 percent, respectively.
o New vehicle retail revenue rose 12.0 percent (1.2 percent same-store), and
unit sales increased 9.7 percent (down 2.0 percent same-store). New vehicle
retail gross profit increased 8.7 percent (down 4.1 percent same-store).
Excluding results in Florida, new vehicle same-store retail revenue and
gross profit were up 2.6 percent and down 2.0 percent, respectively.
o Used vehicle retail revenue increased 5.5 percent (down 4.0 percent
same-store), and unit sales increased 2.9 percent (down 5.4 percent
same-store). Used vehicle retail gross profit increased 0.3 percent (down
8.0 percent same-store). Excluding results in Florida, used vehicle
same-store retail revenue and gross profit were up 2.3 percent and down 6.1
percent, respectively.
o Parts, service and collision repair revenue and gross profit increased 15.4
percent and 12.2 percent (5.1 percent and 2.6 percent same-store),
respectively. Excluding results in Florida, parts, service and collision
repair same-store revenue and gross profit were up 5.0 percent and 4.0
percent, respectively.
o Net finance and insurance (F&I) revenue rose 10.7 percent (1.9 percent
same-store). F&I per vehicle retailed (PVR) increased 3.2 percent to $902,
and platform F&I PVR rose 3.3 percent to $870. Excluding results in
Florida, net F&I same-store revenue rose 6.3 percent, while F&I PVR
increased 6.1 percent and platform F&I PVR rose 6.1 percent.
o The Company's St. Louis platform was very successful in selling through a
large portion of vehicles damaged from a May hailstorm at better than
anticipated gross margins, however, there still remains approximately 100
of the more considerably damaged cars that are expected to be sold at lower
gross profits.
o As a percentage of gross profit, selling, general and administrative (SG&A)
expenses for the quarter were 81.1 percent, compared with 75.8 percent in
the prior-year period. Hurricane-related disruptions in Florida and other
southeastern markets contributed to the increase; other factors included a
sale-leaseback transaction that resulted in increased rent expense, while
reducing interest and depreciation expense, as well as start-up costs
associated with new and acquired dealerships.
o The Company's effective tax rate for the quarter was 37.5 percent, compared
to 37.9 percent in the prior year quarter. For the year to date, the
Company's effective tax rate was 37.2 percent, compared to 39.0 percent in
2003.
President and CEO Kenneth B. Gilman said, "This past quarter was one that tested
our business model on many levels, with some aspects proving to be robust while
others were challenged. While the quarter was stressed by severe weather in our
Florida markets, as well as a less than optimal industry environment, the
validity of the business model itself was once again reaffirmed.
"Excluding our two Florida platforms, same-store retail gross profit rose 1.6
percent for the third quarter - nearly matching the 1.7 percent increase
achieved during the second quarter. The underlying dynamics remained similar as
well, with new and used vehicle gross margins under ongoing pressure throughout
the industry. At the same time, we effectively offset this pressure with
continued solid increases in income from our F&I and fixed operations."
J. Gordon Smith, Senior Vice President and CFO, commented, "The increase in our
SG&A expense ratio was principally attributable to four factors. Specifically,
our Florida platforms on a comparable basis earned $0.10 per share less this
quarter than in the third quarter of 2003, primarily due to the impact of the
hurricanes. This contributed 140 basis points to the increase in our expense
ratio. In addition, our investment in new markets in Southern California and
Frisco, Texas, which should allow us to continue to grow in key areas, in the
short-term added 160 basis points to the expense ratio. After adjusting for
these items, we made two other decisions that impacted the ratio. A
sale-leaseback transaction added $2.3 million of rent expense, contributing 160
basis points to the increase, although this is principally offset by reductions
in depreciation expense and interest expense not included in SG&A. Lastly, in an
effort to maintain market share, we increased our advertising spending during
the quarter, accounting for the remaining 70 basis points of the increase.
"We also acknowledge that cost control is an ongoing issue with any retailer,
and we're confident that programs being implemented now will have a positive
impact upon the remainder of 2004 and into 2005, positioning us to deliver
improved productivity."
Mr. Gilman concluded, "On balance, Asbury's performance this quarter leads me to
conclude that our ability to successfully deliver on our model is within our
control. While a portion of the expense increase we experienced during the
quarter was unavoidable, such as the impact of the hurricanes, some of the
overall increase represented investments in the business that should eventually
benefit us. In other areas, the expense increases were less than intentional,
and really represent opportunities for us to do a better job of bringing more of
our gross profit down to the bottom line. The challenges we faced only served to
confirm the direction we're heading in and the work we still need to do."
Commenting on guidance for 2004, the Company now expects earnings from
continuing operations for the full year to be in a range between $1.52 and $1.57
per share.
Thus far this year, Asbury has acquired dealerships that represent approximately
$315 million in annualized revenues, within its previously targeted range of
$300 million to $500 million for the full year.
Asbury will host a conference call to discuss its third quarter results this
morning at 11:00 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 888-602-6363; international callers, please dial
719-955-1568. No access code is required.
A conference call replay will be available two hours following the call for 14
days and can be accessed by calling 888-203-1112 (domestic), or 719-457-0820
(international); access code 883005.
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 2003 revenue of $4.8 billion.
Built through a combination of organic growth and a series of strategic
acquisitions, the Company currently operates 99 retail auto stores, encompassing
137 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 substantial indebtedness, risks related to
pending and potential future acquisitions, 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.
[financial tables]
Asbury Automotive Group, Inc.
Consolidated Statements of Income
(In Thousands, except per share data)
(Unaudited)
For the Three Months Ended For the Nine Months Ended
September 30, September 30,
-------------------------- --------------------------
2004 2003 2004 2003
------------ ----------- ------------ -----------
REVENUES:
New vehicle $ 862,863 $ 761,340 $ 2,421,645 $ 2,114,259
Used vehicle 329,998 309,371 965,355 887,701
Parts, service and collision repair 157,416 136,385 450,506 389,012
Finance and insurance, net 39,749 35,923 110,569 96,241
------------ ----------- ------------ -----------
Total revenues 1,390,026 1,243,019 3,948,075 3,487,213
COST OF SALES
New vehicle 802,562 706,315 2,248,480 1,958,751
Used vehicle 303,236 282,200 882,693 806,710
Parts, service and collision repair 75,985 63,816 214,890 181,804
------------ ----------- ------------ -----------
Total cost of sales 1,181,783 1,052,331 3,346,063 2,947,265
------------ ----------- ------------ -----------
GROSS PROFIT 208,243 190,688 602,012 539,948
OPERATING EXPENSES:
Selling, general and administrative 168,836 144,474 481,344 419,596
Depreciation and amortization 4,993 5,004 15,419 14,602
------------ ----------- ------------ -----------
Income from operations 34,414 41,210 105,249 105,750
OTHER INCOME (EXPENSE):
Floor plan interest expense (5,383) (4,207) (15,233) (12,871)
Other interest expense (8,678) (10,088) (29,186) (30,030)
Interest income 228 190 613 436
Gain (loss) on sale of assets 42 (94) (99) (432)
Other income (expense) 129 (78) 226 2
------------ ----------- ------------ -----------
Total other expense, net (13,662) (14,277) (43,679) (42,895)
------------ ----------- ------------ -----------
Income from continuing operations before
income taxes and discontinued operations 20,752 26,933 61,570 62,855
INCOME TAX EXPENSE 7,782 10,214 22,912 24,507
------------ ----------- ------------ -----------
Income from continuing operations 12,970 16,719 38,658 38,348
DISCONTINUED OPERATIONS, net of tax (854) (475) (1,430) (2,734)
------------ ----------- ------------ -----------
Net income $ 12,116 $ 16,244 $ 37,228 $ 35,614
=========== =========== =========== ===========
BASIC EARNINGS PER COMMON SHARE:
Continuing operations $ 0.40 $ 0.52 $ 1.19 $ 1.17
Discontinued operations (0.03) (0.02) (0.04) (0.08)
------------ ----------- ------------ -----------
Net income $ 0.37 $ 0.50 $ 1.15 $ 1.09
=========== =========== =========== ===========
DILUTED EARNINGS PER COMMON SHARE:
Continuing operations $ 0.40 $ 0.51 $ 1.18 $ 1.17
Discontinued operations (0.03) (0.01) (0.04) (0.08)
------------ ----------- ------------ -----------
Net income $ 0.37 $ 0.50 $ 1.14 $ 1.09
=========== =========== =========== ===========
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic 32,540 32,419 32,482 32,721
=========== =========== =========== ===========
Diluted 32,647 32,612 32,675 32,761
=========== =========== =========== ===========
Asbury Automotive Group, Inc.
Consolidated Statements of Income
(In Thousands, except per share data)
(Unaudited)
For the Three Months Ended For the Three Months Ended
September 30, 2004 September 30, 2003
------------------------------------- -----------------------------------
Non-Florida Florida Non-Florida Florida
Operations Operations* Total Operations Operations* Total
---------- ---------- ----------- ---------- ---------- -----------
REVENUES:
New vehicle $ 623,997 $ 238,866 $ 862,863 $ 524,152 $ 237,188 $ 761,340
Used vehicle 236,409 93,589 329,998 202,803 106,568 309,371
Parts, service and collision repair 119,244 38,172 157,416 100,184 36,201 136,385
Finance and insurance, net 27,905 11,844 39,749 23,301 12,622 35,923
----------- --------- ----------- --------- --------- -----------
Total revenues 1,007,555 382,471 1,390,026 850,440 392,579 1,243,019
COST OF SALES
New vehicle 580,591 221,971 802,562 487,266 219,049 706,315
Used vehicle 218,709 84,527 303,236 186,317 95,883 282,200
Parts, service and collision repair 59,222 16,763 75,985 49,189 14,627 63,816
----------- --------- ----------- --------- --------- -----------
Total cost of sales 858,522 323,261 1,181,783 722,772 329,559 1,052,331
----------- --------- ----------- --------- --------- -----------
GROSS PROFIT 149,033 59,210 208,243 127,668 63,020 190,688
OPERATING EXPENSES:
Selling, general and administrative 121,947 46,889 168,836 100,472 44,002 144,474
Depreciation and amortization 4,000 993 4,993 3,691 1,313 5,004
----------- --------- ----------- --------- --------- -----------
Income from operations 23,086 11,328 34,414 23,505 17,705 41,210
OTHER INCOME (EXPENSE):
Floor plan interest expense (3,943) (1,440) (5,383) (2,888) (1,319) (4,207)
Other interest expense (8,426) (252) (8,678) (9,436) (652) (10,088)
Interest income 197 31 228 64 126 190
Gain (loss) on sale of assets 3 39 42 (100) 6 (94)
Other income (expense) 116 13 129 (163) 85 (78)
----------- --------- ----------- --------- --------- -----------
Total other expense, net (12,053) (1,609) (13,662) (12,523) (1,754) (14,277)
----------- --------- ----------- --------- --------- -----------
Income from continuing operations
before income taxes and
discontinued operations 11,033 9,719 20,752 10,982 15,951 26,933
INCOME TAX EXPENSE 3,903 3,879 7,782 4,665 5,549 10,214
----------- --------- ----------- --------- --------- -----------
Income from continuing operations 7,130 5,840 12,970 6,317 10,402 16,719
DISCONTINUED OPERATIONS, net of tax (1,260) 406 (854) (1,184) 709 (475)
----------- --------- ----------- --------- --------- -----------
Net income $ 5,870 $ 6,246 $ 12,116 $ 5,133 $ 11,111 $ 16,244
=========== ========= =========== ========= ========= ===========
BASIC EARNINGS PER COMMON SHARE:
Continuing operations $ 0.22 $ 0.18 $ 0.40 $ 0.20 $ 0.32 $ 0.52
Discontinued operations (0.04) 0.01 (0.03) (0.04) 0.02 (0.02)
----------- --------- ----------- --------- --------- -----------
Net income $ 0.18 $ 0.19 $ 0.37 $ 0.16 $ 0.34 $ 0.50
=========== ========= =========== ========= ========= ===========
DILUTED EARNINGS PER COMMON SHARE:
Continuing operations $ 0.22 $ 0.18 $ 0.40 $ 0.19 $ 0.32 $ 0.51
Discontinued operations (0.04) 0.01 (0.03) (0.03) 0.02 (0.01)
----------- --------- ----------- --------- --------- -----------
Net income $ 0.18 $ 0.19 $ 0.37 $ 0.16 $ 0.34 $ 0.50
=========== ========= =========== ========= ========= ===========
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic 32,540 32,540 32,540 32,419 32,419 32,419
=========== ========= =========== ========= ========= ===========
Diluted 32,647 32,647 32,647 32,612 32,612 32,612
=========== ========= =========== ========= ========= ===========
* The results of the Company's Florida operations do not include an
allocation of corporate overhead or interest expense related to the
Company's senior indebtedness. All such amounts are included in the results
of the Company's non-Florida operations.
Asbury Automotive Group, Inc.
Selected Data
(Dollars in thousands except per share data)
(Unaudited)
As Reported for the Same Store for the
Three Months Ended September 30, Three Months Ended September 30,
----------------------------------------- -----------------------------------------
2004 2003 2004 2003
---------- ---------- ---------- ----------
RETAIL VEHICLES SOLD:
New units 28,411 64.5% 25,900 63.0% 25,378 63.8% 25,900 63.0%
Used units 15,645 35.5% 15,202 37.0% 14,379 36.2% 15,202 37.0%
---------- ------ ---------- ------ ---------- ------ ---------- ------
Total units 44,056 100.0% 41,102 100.0% 39,757 100.0% 41,102 100.0%
========== ====== ========== ====== ========== ====== ========== ======
REVENUE:
New retail $ 845,114 60.8% $ 754,866 60.7% $ 763,799 60.6% $ 754,866 60.7%
Used retail 245,617 17.7% 232,717 18.7% 223,506 17.7% 232,717 18.7%
Parts, service and collision repair 157,416 11.3% 136,385 11.0% 143,349 11.4% 136,385 11.0%
Finance and insurance, net 39,749 2.9% 35,923 2.9% 36,616 2.9% 35,923 2.9%
---------- ---------- ---------- ----------
Total retail revenue 1,287,896 1,159,891 1,167,270 1,159,891
Fleet 17,749 1.3% 6,474 0.5% 17,378 1.4% 6,474 0.5%
Wholesale 84,381 6.0% 76,654 6.2% 76,023 6.0% 76,654 6.2%
---------- ------ ---------- ------ ---------- ------ ---------- ------
Total revenue $1,390,026 100.0% $1,243,019 100.0% $1,260,671 100.0% $1,243,019 100.0%
========== ====== ========== ====== ========== ====== ========== ======
GROSS PROFIT
New retail $ 52,812 25.3% $ 48,564 25.5% $ 46,568 24.6% $ 48,564 25.5%
Used retail 28,078 13.5% 27,992 14.7% 25,763 13.6% 27,992 14.7%
Parts, service and collision repair 81,431 39.1% 72,569 38.1% 74,440 39.3% 72,569 38.1%
Finance and insurance, net 39,749 19.1% 35,923 18.8% 36,616 19.3% 35,923 18.8%
Floor plan interest credits 6,867 3.3% 6,170 3.2% 6,418 3.4% 6,170 3.2%
---------- ---------- ---------- ----------
Total retail gross profit 208,937 191,218 189,805 191,218
Fleet 622 0.3% 291 0.1% 620 0.3% 291 0.1%
Wholesale (1,316) (0.6)% (821) (0.4)% (1,064) (0.5)% (821) (0.4)%
---------- ------ ---------- ------ ---------- ------ ---------- ------
Total gross profit $ 208,243 100.0% $ 190,688 100.0% $ 189,361 100.0% $ 190,688 100.0%
========== ====== ========== ====== ========== ====== ========== ======
Sales, general and administrative
(SG&A) expense $ 168,836 $ 144,474 $ 151,747 $ 144,474
SG&A as a percent of gross profit 81.1% 75.8% 80.1% 75.8%
GROSS PROFIT PER VEHICLE RETAILED:
New retail (including floor plan
interest credits) $ 2,101 $ 2,113 $ 2,088 $ 2,113
Used retail 1,795 1,841 1,792 1,841
Finance and insurance, net 902 874 921 874
Platform finance and insurance, net 870 842 886 842
Asbury Automotive Group, Inc.
Selected Data
(Dollars in thousands except per share data)
(Unaudited)
As Reported for the Same Store for the
Nine Months Ended September 30, Nine Months Ended September 30,
----------------------------------------- -----------------------------------------
2004 2003 2004 2003
---------- ---------- ---------- ----------
RETAIL VEHICLES SOLD:
New units 79,979 63.2% 72,327 61.9% 71,996 62.7% 72,327 61.9%
Used units 46,534 36.8% 44,470 38.1% 42,799 37.3% 44,470 38.1%
---------- ------ ---------- ------ ---------- ------ ---------- ------
Total units 126,513 100.0% 116,797 100.0% 114,795 100.0% 116,797 100.0%
========== ====== ========== ====== ========== ====== ========== ======
REVENUE:
New retail $2,375,774 60.2% $2,079,269 59.6% $2,147,385 60.0% $2,079,269 59.6%
Used retail 720,662 18.2% 682,182 19.6% 652,780 18.2% 682,182 19.6%
Parts, service and collision repair 450,506 11.4% 389,012 11.1% 407,990 11.4% 389,012 11.1%
Finance and insurance, net 110,569 2.8% 96,241 2.8% 102,357 2.9% 96,241 2.8%
---------- ---------- ---------- ----------
Total retail revenue 3,657,511 3,246,704 3,310,512 3,246,704
Fleet 45,871 1.2% 34,990 1.0% 45,266 1.3% 34,990 1.0%
Wholesale 244,693 6.2% 205,519 5.9% 220,596 6.2% 205,519 5.9%
---------- ------ ---------- ------ ---------- ------ ---------- ------
Total revenue $3,948,075 100.0% $3,487,213 100.0% $3,576,374 100.0% $3,487,213 100.0%
========== ====== ========== ====== ========== ====== ========== ======
GROSS PROFIT
New retail $ 152,667 25.4% $ 137,933 25.5% $ 134,658 24.6% $ 137,933 25.5%
Used retail 85,242 14.1% 81,670 15.1% 77,987 14.3% 81,670 15.1%
Parts, service and collision repair 235,616 39.1% 207,208 38.4% 214,413 39.3% 207,208 38.4%
Finance and insurance, net 110,569 18.4% 96,241 17.8% 102,357 18.7% 96,241 17.8%
Floor plan interest credits 18,871 3.1% 16,710 3.1% 17,652 3.2% 16,710 3.1%
---------- ---------- ---------- ----------
Total retail gross profit 602,965 539,762 547,067 539,762
Fleet 1,627 0.3% 865 0.2% 1,624 0.3% 865 0.2%
Wholesale (2,580) (0.4)% (679) (0.1)% (2,250) (0.4)% (679) (0.1)%
---------- ------ ---------- ------ ---------- ------ ---------- ------
Total gross profit $ 602,012 100.0% $ 539,948 100.0% $ 546,441 100.0% $ 539,948 100.0%
========== ====== ========== ====== ========== ====== ========== ======
Sales, general and administrative
(SG&A) expense $ 481,344 $ 419,596 $ 434,806 $ 419,596
SG&A as a percent of gross profit 80.0% 77.7% 79.6% 77.7%
GROSS PROFIT PER VEHICLE RETAILED:
New retail (including floor plan
interest credits) $ 2,145 $ 2,138 $ 2,116 2,138
Used retail 1,832 1,837 1,822 1,837
Finance and insurance, net 874 824 892 824
Platform finance and insurance, net 838 813 852 813
Asbury Automotive Group, Inc.
Selected Data
(Dollars in thousands except per share data)
(Unaudited)
As Reported For the Three Months Ended September 30, 2004
---------------------------------------------------------------------
Non-Florida Florida
Operations Operations* Total
---------- ---------- ----------
RETAIL VEHICLES SOLD:
New units 20,215 65.6% 8,196 62.0% 28,411 64.5%
Used units 10,615 34.4% 5,030 38.0% 15,645 35.5%
---------- ------ ---------- ------ ---------- ------
Total units 30,830 100.0% 13,226 100.0% 44,056 100.0%
========== ====== ========== ====== ========== ======
REVENUE:
New retail $ 615,343 61.1% $ 229,771 60.1% $ 845,114 60.8%
Used retail 174,533 17.3% 71,084 18.5% 245,617 17.7%
Parts, service and collision repair 119,244 11.8% 38,172 10.0% 157,416 11.3%
Finance and insurance, net 27,905 2.8% 11,844 3.1% 39,749 2.9%
---------- ---------- ----------
Total retail revenue 937,025 350,871 1,287,896
Fleet 8,654 0.9% 9,095 2.4% 17,749 1.3%
Wholesale 61,876 6.1% 22,505 5.9% 84,381 6.0%
---------- ------ ---------- ------ ---------- ------
Total revenue $1,007,555 100.0% $ 382,471 100.0% $1,390,026 100.0%
========== ====== ========== ====== ========== ======
GROSS PROFIT
New retail $ 38,743 26.0% $ 14,069 23.8% $ 52,812 25.3%
Used retail 18,364 12.3% 9,714 16.4% 28,078 13.5%
Parts, service and collision repair 60,022 40.3% 21,409 36.2% 81,431 39.1%
Finance and insurance, net 27,905 18.7% 11,844 20.0% 39,749 19.1%
Floor plan interest credits 4,472 3.0% 2,395 4.0% 6,867 3.3%
---------- ---------- ----------
Total retail gross profit 149,506 59,431 208,937
Fleet 191 0.1% 431 0.7% 622 0.3%
Wholesale (664) (0.4)% (652) (1.1)% (1,316) (0.6)%
---------- ------ ---------- ------ ---------- ------
Total gross profit $ 149,033 100.0% $ 59,210 100.0% $ 208,243 100.0%
========== ====== ========== ====== ========== ======
Sales, general and administrative (SG&A) expense 121,947 46,889 168,836
SG&A as a percent of gross profit 81.8% 79.2% 81.1%
GROSS PROFIT PER VEHICLE RETAILED:
New retail (including floor plan interest credits) $ 2,138 $ 2,009 $ 2,101
Used retail 1,730 1,931 1,795
Finance and insurance, net 905 896 902
Platform finance and insurance, net 859 896 870
* The results of the Company's Florida operations do not include an
allocation of corporate overhead or interest expense related to the
Company's senior indebtedness. All such amounts are included in the
results of the Company's non-Florida operations.
Asbury Automotive Group, Inc.
Selected Data
(Dollars in thousands except per share data)
(Unaudited)
As Reported For the Three Months Ended September 30, 2003
---------------------------------------------------------------------
Non-Florida Florida
Operations Operations* Total
---------- ---------- ----------
RETAIL VEHICLES SOLD:
New units 17,320 65.4% 8,580 58.7% 25,900 63.0%
Used units 9,172 34.6% 6,030 41.3% 15,202 37.0%
---------- ------ ---------- ------ ---------- ------
Total units 26,492 100.0% 14,610 100.0% 41,102 100.0%
========== ====== ========== ====== ========== ======
REVENUE:
New retail $ 520,465 61.2% $ 234,401 59.7% $ 754,866 60.7%
Used retail 149,059 17.5% 83,658 21.3% 232,717 18.7%
Parts, service and collision repair 100,184 11.8% 36,201 9.2% 136,385 11.0%
Finance and insurance, net 23,301 2.8% 12,622 3.2% 35,923 2.9%
---------- ---------- ----------
Total retail revenue 793,009 366,882 1,159,891
Fleet 3,687 0.4% 2,787 0.7% 6,474 0.5%
Wholesale 53,744 6.3% 22,910 5.9% 76,654 6.2%
---------- ------ ---------- ------ ---------- ------
Total revenue $ 850,440 100.0% $ 392,579 100.0% $1,243,019 100.0%
========== ====== ========== ====== ========== ======
GROSS PROFIT
New retail $ 33,157 26.0% $ 15,407 24.5% $ 48,564 25.5%
Used retail 17,097 13.4% 10,895 17.3% 27,992 14.7%
Parts, service and collision repair 50,995 39.9% 21,574 34.2% 72,569 38.1%
Finance and insurance, net 23,301 18.2% 12,622 20.0% 35,923 18.8%
Floor plan interest credits 3,770 3.0% 2,400 3.8% 6,170 3.2%
---------- ---------- ----------
Total retail gross profit 128,320 62,898 191,218
Fleet (41) - % 332 0.5% 291 0.1%
Wholesale (611) (0.5)% (210) (0.3)% (821) (0.4)%
---------- ------ ---------- ------ ---------- ------
Total gross profit $ 127,668 100.0% $ 63,020 100.0% $ 190,688 100.0%
========== ====== ========== ====== ========== ======
Sales, general and administrative (SG&A) expense 100,472 44,002 144,474
SG&A as a percent of gross profit 78.7% 69.8% 75.8%
GROSS PROFIT PER VEHICLE RETAILED:
New retail (including floor plan interest credits) $ 2,132 $ 2,075 $ 2,113
Used retail 1,864 1,807 1,841
Finance and insurance, net 880 864 874
Platform finance and insurance, net 830 864 842
* The results of the Company's Florida operations do not include an
allocation of corporate overhead or interest expense related to the
Company's senior indebtedness. All such amounts are included in the
results of the Company's non-Florida operations.
Asbury Automotive Group, Inc.
Selected Data
(Dollars in thousands except per share data)
(Unaudited)
Same Store For the Three Months Ended September 30, 2004
---------------------------------------------------------------------
Non-Florida Florida
Operations Operations* Total
---------- ---------- ----------
RETAIL VEHICLES SOLD:
New units 17,182 64.8% 8,196 62.0% 25,378 63.8%
Used units 9,349 35.2% 5,030 38.0% 14,379 36.2%
---------- ------ ---------- ------ ---------- ------
Total units 26,531 100.0% 13,226 100.0% 39,757 100.0%
========== ====== ========== ====== ========== ======
REVENUE:
New retail $ 534,028 60.8% $ 229,771 60.1% $ 763,799 60.6%
Used retail 152,422 17.4% 71,084 18.5% 223,506 17.7%
Parts, service and collision repair 105,177 12.0% 38,172 10.0% 143,349 11.4%
Finance and insurance, net 24,772 2.8% 11,844 3.1% 36,616 2.9%
---------- ---------- ----------
Total retail revenue 816,399 350,871 1,167,270
Fleet 8,283 0.9% 9,095 2.4% 17,378 1.4%
Wholesale 53,518 6.1% 22,505 5.9% 76,023 6.0%
---------- ------ ---------- ------ ---------- ------
Total revenue $ 878,200 100.0% $ 382,471 100.0% $1,260,671 100.0%
========== ====== ========== ====== ========== ======
GROSS PROFIT
New retail $ 32,499 25.0% $ 14,069 23.8% $ 46,568 24.6%
Used retail 16,049 12.3% 9,714 16.4% 25,763 13.6%
Parts, service and collision repair 53,031 40.8% 21,409 36.2% 74,440 39.3%
Finance and insurance, net 24,772 19.0% 11,844 20.0% 36,616 19.3%
Floor plan interest credits 4,023 3.1% 2,395 4.0% 6,418 3.4%
---------- ---------- ----------
Total retail gross profit 130,374 59,431 189,805
Fleet 189 0.1% 431 0.7% 620 0.3%
Wholesale (412) (0.3)% (652) (1.1)% (1,064) (0.5)%
---------- ------ ---------- ------ ---------- ------
Total gross profit $ 130,151 100.0% $ 59,210 100.0% $ 189,361 100.0%
========== ====== ========== ====== ========== ======
Sales, general and administrative (SG&A) expense 104,858 46,889 151,747
SG&A as a percent of gross profit 80.1% 79.2% 80.1%
GROSS PROFIT PER VEHICLE RETAILED:
New retail (including floor plan interest
credits) $ 2,126 $ 2,009 $ 2,088
Used retail 1,717 1,931 1,792
Finance and insurance, net 934 896 921
Platform finance and insurance, net 881 896 886
* The results of the Company's Florida operations do not include an
allocation of corporate overhead or interest expense related to the
Company's senior indebtedness. All such amounts are included in the
results of the Company's non-Florida operations.
Asbury Automotive Group, Inc.
Selected Data
(Dollars in thousands except per share data)
(Unaudited)
Same Store For the Three Months Ended September 30, 2003
---------------------------------------------------------------------
Non-Florida Florida
Operations Operations* Total
---------- ---------- ----------
RETAIL VEHICLES SOLD:
New units 17,320 65.4% 8,580 58.7% 25,900 63.0%
Used units 9,172 34.6% 6,030 41.3% 15,202 37.0%
---------- ------ ---------- ------ ---------- ------
Total units 26,492 100.0% 14,610 100.0% 41,102 100.0%
========== ====== ========== ====== ========== ======
REVENUE:
New retail $ 520,465 61.2% $ 234,401 59.7% $ 754,866 60.7%
Used retail 149,059 17.5% 83,658 21.3% 232,717 18.7%
Parts, service and collision repair 100,184 11.8% 36,201 9.2% 136,385 11.0%
Finance and insurance, net 23,301 2.8% 12,622 3.2% 35,923 2.9%
---------- ---------- ----------
Total retail revenue 793,009 366,882 1,159,891
Fleet 3,687 0.4% 2,787 0.7% 6,474 0.5%
Wholesale 53,744 6.3% 22,910 5.9% 76,654 6.2%
---------- ------ ---------- ------ ---------- ------
Total revenue $ 850,440 100.0% $ 392,579 100.0% $1,243,019 100.0%
========== ====== ========== ====== ========== ======
GROSS PROFIT
New retail $ 33,157 26.0% $ 15,407 24.5% $ 48,564 25.5%
Used retail 17,097 13.4% 10,895 17.3% 27,992 14.7%
Parts, service and collision repair 50,995 39.9% 21,574 34.2% 72,569 38.1%
Finance and insurance, net 23,301 18.2% 12,622 20.0% 35,923 18.8%
Floor plan interest credits 3,770 3.0% 2,400 3.8% 6,170 3.2%
---------- ---------- ----------
Total retail gross profit 128,320 62,898 191,218
Fleet (41) - % 332 0.5% 291 0.1%
Wholesale (611) (0.5)% (210) (0.3)% (821) (0.4)%
---------- ------ ---------- ------ ---------- ------
Total gross profit $ 127,668 100.0% $ 63,020 100.0% $ 190,688 100.0%
========== ====== ========== ====== ========== ======
Sales, general and administrative (SG&A) expense 100,472 44,002 144,474
SG&A as a percent of gross profit 78.7% 69.8% 75.8%
GROSS PROFIT PER VEHICLE RETAILED:
New retail (including floor plan interest
credits) $ 2,132 $ 2,075 $ 2,113
Used retail 1,864 1,807 1,841
Finance and insurance, net 880 864 874
Platform finance and insurance, net 830 864 842
As of As of
September 30, December 31,
2004 2003
------------- ------------
BALANCE SHEET HIGHLIGHTS:
Cash and cash equivalents $ 18,255 $ 106,711
Inventories 692,300 650,397
Total current assets 1,039,296 1,041,542
Floor plan notes payable 557,181 602,167
Total current liabilities 765,172 781,758
CAPITALIZATION:
Long-term debt (including current portion) $ 531,115 $ 592,378
Stockholders'/members' equity 467,974 433,707
---------- ----------
Total $ 999,089 $1,026,085
========== ==========
* The results of the Company's Florida operations do not include an
allocation of corporate overhead or interest expense related to the
Company's senior indebtedness. All such amounts are included in the
results of the Company's non-Florida operations.
ASBURY AUTOMOTIVE GROUP, INC.
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
(In thousands, except vehicle data)
(Unaudited)
We evaluate our finance and insurance gross profit performance on a per-vehicle
retailed basis by dividing our total finance and insurance gross profit by the
number of retail vehicles sold. During 2003, we renegotiated a contract with one
of our third party finance and insurance product providers, which resulted in
the recognition of income that was not attributable to retail vehicles sold
during the year. We believe that platform finance and insurance, which excludes
the additional revenue 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 platform finance and insurance gross profit, and provides necessary
components to calculate platform finance and insurance gross profit per vehicle
retailed.
As Reported For the Three Same Store For the Three
Months Ended September 30, Months Ended September 30,
-------------------------- --------------------------
2004 2003 2004 2003
----------- ---------- ---------- -----------
RECONCILIATION OF FINANCE AND INSURANCE GROSS PROFIT
TO PLATFORM FINANCE AND INSURANCE:
Finance and insurance, net $39,749 $35,923 $36,616 $35,923
Less: corporate finance and insurance (1,408) (1,300) (1,408) (1,300)
------- ------- ------- -------
Platform finance and insurance, net $38,341 $34,623 $35,208 $34,623
======= ======= ======= =======
RETAIL VEHICLES SOLD:
New retail units 28,411 25,900 25,378 25,900
Used retail units 15,645 15,202 14,379 15,202
------- ------- ------- -------
Total units 44,056 41,102 39,757 41,102
======= ======= ======= =======
As Reported For the Nine Same Store For the Nine
Months Ended September 30, Months Ended September 30,
-------------------------- --------------------------
2004 2003 2004 2003
----------- ---------- ---------- -----------
RECONCILIATION OF FINANCE AND INSURANCE GROSS PROFIT
TO PLATFORM FINANCE AND INSURANCE:
Finance and insurance, net $110,569 $ 96,241 $102,357 $ 96,241
Less: corporate finance and insurance (4,556) (1,300) (4,556) (1,300)
-------- -------- -------- --------
Platform finance and insurance, net $106,013 $ 94,941 $ 97,801 $ 94,941
======== ======== ======== ========
RETAIL VEHICLES SOLD:
New retail units 79,979 72,327 71,996 72,327
Used retail units 46,534 44,470 42,799 44,470
-------- -------- -------- --------
Total units 126,513 116,797 114,795 116,797
======== ======== ======== ========
We define operating income as gross profit less selling, general and
administrative expenses, and depreciation and amortization expense. The
operating income of the Company's Florida operations was largely impacted by
incremental rent expense associated with a sale-leaseback transaction that was
entered into in the third quarter of 2004. We believe that excluding the
incremental rent expense from the operating income and income from continuing
operations per share for the third quarter of 2004 provides a more meaningful
basis to measure the results of the Company's Florida operations compared to
that of the prior year period. A reconciliation of the Company's Florida
adjusted operating income and income from continuing operations per share is
presented below.
For the Three For the Three
Months Ended Months Ended
September 30, September 30,
2004 2003 Variance % Variance
------------- ------------- -------- ----------
Operating income of Florida operations* $11,328 $17,705 $(6,377) (36.0)%
Add:
Incremental rent expense associated with
sale-leaseback transaction 1,184 - 1,184
------- ------- -------
Adjusted operating income from Florida operations* $12,512 $17,705 $(5,193) (29.3)%
======= ======= ========
For the Three For the Three
Months Ended Months Ended
September 30, September 30,
2004 2003 Variance
------------- ------------- --------
Income from continuing Florida operations* $ 5,840 $10,402 $(4,562)
Add:
Incremental rent expense associated with
sale-leaseback transaction 1,184 - 1,184
------- ------- -------
Adjusted income from continuing Florida operations* $ 7,024 $10,402 $(3,378)
======= ======= =======
Weighted average shares outstanding - basic 32,540 32,419
======= =======
Adjusted income from continuing Florida operations*
per share $ 0.22 $ 0.32 $ (0.10)
======= ======= =======
* The results of the Company's Florida operations do not include an
allocation of corporate overhead or interest expense related to the
Company's senior indebtedness. All such amounts are included in the
results of the Company's non-Florida operations.