Exhibit 99.1 Investors May Contact:
Stacey Yonkus
Director, Investor Relations
(212) 885-2512
investor@asburyauto.com
Reporters May Contact:
David Shein
RF|Binder Partners
(212) 994-7514
David.Shein@RFBinder.com
Asbury Automotive Group Comments on Fourth Quarter Earnings
Preliminary Results Significantly Exceed Current Analysts' Expectations
Announces Implementation of Efficient Regional Management Structure
New York, NY, Jan. 20, 2005 - Asbury Automotive Group, Inc. (NYSE: ABG),
one of the largest automotive retail and service companies in the U.S., today
announced that based on preliminary unaudited financial information for the
fourth quarter ended December 31, 2004, the Company's earnings from continuing
operations are expected to be approximately $0.42 per diluted share, above the
analysts' consensus estimate of $0.33, and $1.61 per diluted share for the full
year.
Overall revenue and gross profit for the fourth quarter were up approximately 16
percent on a same-store basis from the prior year quarter. All four components
of the Company's business model - new vehicles; used vehicles; parts, service
and collision repair; and finance and insurance - delivered double-digit same-
store increases in gross profit for the quarter. For the full year 2004, total
same-store revenue increased approximately six percent from the prior year,
while same-store gross profit rose approximately four percent.
President and CEO Kenneth B. Gilman commented, "We are particularly pleased with
the balanced performance of our business model during the quarter. These results
were attributable to a bounce in our Florida markets, which posted a 28 percent
same-store increase in gross profit, following the hurricanes experienced in the
third quarter, as well as a solid overall performance in our non-Florida
platforms, which were up approximately 11 percent on a same-store basis."
The Company also announced today that it has reorganized seven of its nine
platforms into principally four regions: Florida; West (California, Texas &
Oregon); Mid-Atlantic (North Carolina, South Carolina & Virginia) and South
(Georgia & Arkansas); with Mississippi and Missouri remaining as stand-alone
platforms. The Company expects a significant increase in management
effectiveness as a result of this recent decision, as well as added operating
and cost efficiencies. Within this more streamlined structure, regional and
platform CEOs will continue to have direct responsibility for day-to-day
operations, as well as the independence and flexibility to respond effectively
to local market conditions. The Company also noted that in moving to this
regional structure it would incur severance and other related one-time costs,
which should be offset by anticipated expense efficiencies to be realized within
the ensuing twelve months. A more detailed discussion of the regional alignment,
as well as the related one-time costs and expense savings, will be provided when
final audited results are reported in February.
Commenting on initial guidance for 2005, the Company expects a reasonable
estimate range would be between $1.70 and $1.78 per share from continuing
operations. This range does not reflect any of the anticipated costs or benefits
associated with the regional reorganization.
Further details will be available when final audited financial results for the
fourth quarter and full year 2004 are announced. The Company plans to issue its
fourth quarter earnings press release before the market opens on Thursday,
February 24, 2005 and to host a conference call for interested parties at 11:00
a.m. Eastern Standard Time. Dial-in information for the call will be available
approximately two weeks prior to the call.
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 2004 revenue of approximately $5.3
billion. Built through a combination of organic growth and a series of strategic
acquisitions, the Company currently operates 96 retail auto stores, encompassing
132 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, risks related to competition in the
automotive retail and service industries, general economic conditions both
nationally and locally and governmental regulations and legislation. There can
be no guarantees that the Company's plans for future operations will be
successfully implemented or that they will prove to be commercially successful.
These and other risk factors are discussed in the Company's annual report on
Form 10-K and in its other filings with the Securities and Exchange Commission.
We undertake no obligation to publicly update any forward-looking statement,
whether as a result of new information, future events or otherwise.