Asbury Automotive Group Announces Second Quarter 2017 Financial Results

DULUTH, Ga., July 25, 2017 /PRNewswire/ -- Asbury Automotive Group, Inc. (NYSE: ABG), one of the largest automotive retail and service companies in the U.S., today reported net income for the second quarter 2017 of $31.9 million, or $1.52 per diluted share, compared to $36.7 million, or $1.65 per diluted share in the prior year quarter. It also reported adjusted income from continuing operations (a non-GAAP measure) for the second quarter 2017 of $33.2 million, or $1.58 per diluted share, compared to $36.6 million, or $1.65 per diluted share, in the prior year quarter, a 4% decrease in adjusted earnings per share.

Income from continuing operations for the second quarter 2017 was adjusted for $2.9 million of pre-tax real estate related charges, or $0.08 per diluted share and $0.8 million of pre-tax investment income, or $0.02 per diluted share. There were no adjustments for the second quarter 2016. See attached reconciliation for reported adjustments related to both of these periods.

Total revenue for the second quarter remained flat at $1.6 billion compared to the prior year period; total revenue on a same-store basis (a non-GAAP measure) was up 2% from the prior year period.

Second Quarter 2017 Operational Summary

Same store:

    --  Total revenues increased 2%; gross profit increased 2%
    --  New vehicle revenue remained flat; gross profit decreased 14%
    --  Used vehicle retail revenue increased 5%; gross profit decreased 6%
    --  Finance and insurance revenue increased 8%
    --  Parts and service revenue increased 6%; gross profit increased 6%

All store:

    --  SG&A as a percentage of gross profit increased 140 basis points to 69.5%
    --  Total company adjusted income from operations (a non-GAAP measure) as a
        percentage of revenue was 4.5%, down 30 bps from the prior year
    --  Adjusted EPS from continuing operations decreased 4%

"In a softening automotive retail environment, we are pleased to have increased our same store revenue and gross profit by 2% this quarter compared to the prior year," said Craig Monaghan, Asbury's President and Chief Executive Officer. "Despite market pressures, we believe we can deliver low to mid-single digit EPS growth in the back half of the year."

"Even though we experienced margin pressure, our ability to drive incremental Used Sales, enhance F&I PVR, and grow Parts and Service enabled us to deliver industry leading operating margins," said Asbury's Executive Vice President and Chief Operating Officer, David Hult. "Our investments in digital technologies and lead management initiatives are yielding solid results and we will continue to invest in this area in the future."

For the six-month period ended June 30, 2017, the Company reported total revenue of $3.2 billion, flat with the prior year period. Total revenue on a same-store basis was up 2%.

For the six-month period ended June 30, 2017, the Company reported net income from continuing operations of $65.9 million, or $3.12 per diluted share, compared to net income from continuing operations of $67.7 million, or $2.91 per diluted share in the prior year period. For the six-month period ended June 30, 2017, the Company reported adjusted net income from continuing operations (a non-GAAP measure) of $66.6 million, or $3.16 per diluted share, compared to adjusted net income from continuing operations of $69.8 million, or $3.00 per diluted share in the prior year period.

Management will host a conference call at 10:00 a.m. Eastern Time today. The conference call will be simulcast live on the internet and can be accessed by logging onto www.asburyauto.com or www.ccbn.com.

A replay will be available at these sites for 30 days. In addition, a live audio of the call will be accessible to the public by calling (888) 481-2864 (domestic), or (719) 325-2367 (international); passcode - 9324358. Callers should dial in approximately 5 to 10 minutes before the call begins.

A conference call replay will be available two hours following the call for seven days, and can be accessed by calling (888) 203-1112 (domestic), or (719) 457-0820 (international); passcode - 9324358.

About Asbury Automotive Group, Inc.

Asbury Automotive Group, Inc. ("Asbury"), a Fortune 500 company headquartered in Duluth, GA, is one of the largest automotive retailers in the U.S. Asbury currently operates 80 dealerships, consisting of 96 franchises, representing 29 domestic and foreign brands of vehicles. Asbury also operates 24 collision repair centers. 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" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements other than historical fact, and may include statements relating to goals, plans, market conditions and projections regarding Asbury's financial position, liquidity, results of operations, market position and dealership portfolio, and other initiatives and future business strategy. These statements are based on management's current expectations and beliefs 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, Asbury's relationships with, and the financial and operational stability of, vehicle manufacturers and other suppliers, acts of God or other incidents which may adversely impact supply from vehicle manufacturers and/or present retail sales challenges, risks associated with Asbury's indebtedness (including available borrowing capacity, compliance with its financial covenants and ability to refinance or repay such indebtedness, on favorable terms), Asbury's relationships with, and the financial stability of, its lenders and lessors, risks related to competition in the automotive retail and service industries, general economic conditions both nationally and locally, governmental regulations, legislation, adverse results in litigation and other proceedings, and Asbury's ability to execute its IT initiatives and other operational strategies, Asbury's ability to leverage gains from its dealership portfolio, Asbury's ability to capitalize on opportunities to repurchase its debt and equity securities or purchase properties that it currently leases, and Asbury's ability to stay within its targeted range for capital expenditures. There can be no guarantees that Asbury's plans for future operations will be successfully implemented or that they will prove to be commercially successful.

These and other risk factors that could cause actual results to differ materially from those expressed or implied in our forward-looking statements are and will be discussed in Asbury's filings with the U.S. Securities and Exchange Commission from time to time, including its most recent annual report on Form 10-K and any subsequently filed quarterly reports on Form 10-Q. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.


    ASBURY AUTOMOTIVE GROUP, INC.

    CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share data)

    (Unaudited)


                                                                              For the Three Months               Increase           %
                                                                                 Ended June 30,                 (Decrease)        Change


                                                                              2017                 2016
                                                                              ----                 ----

    REVENUE:

    New vehicle                                                                       $882.9                               $897.0           $(14.1)            (2)%

    Used vehicle:

    Retail                                                                   430.2                        418.3                        11.9       3%

    Wholesale                                                                 49.0                         51.9                       (2.9)    (6)%
                                                                              ----                         ----

         Total used vehicle                                                  479.2                        470.2                         9.0       2%

    Parts and service                                                        200.8                        195.3                         5.5       3%

    Finance and insurance, net                                                68.9                         64.9                         4.0       6%
                                                                              ----                         ----

    TOTAL REVENUE                                                          1,631.8                      1,627.4                         4.4             -   %

    GROSS PROFIT:

    New vehicle                                                               41.0                         47.5                       (6.5)   (14)%

    Used vehicle:

    Retail                                                                    32.5                         34.8                       (2.3)    (7)%

    Wholesale                                                                  0.2                        (0.6)                        0.8     133%

         Total used vehicle                                                   32.7                         34.2                       (1.5)    (4)%

    Parts and service                                                        124.5                        121.0                         3.5       3%

    Finance and insurance, net                                                68.9                         64.9                         4.0       6%
                                                                              ----                         ----

    TOTAL GROSS PROFIT                                                       267.1                        267.6                       (0.5)            -   %

    OPERATING EXPENSES (INCOME):

    Selling, general and administrative                                      185.6                        182.3                         3.3       2%

    Depreciation and amortization                                              8.0                          7.7                         0.3       4%

    Other operating expenses (income), net                                     1.9                        (0.5)                        2.4            NM
                                                                               ---                         ----

    INCOME FROM OPERATIONS                                                    71.6                         78.1                       (6.5)    (8)%

    OTHER EXPENSES:

    Floor plan interest expense                                                6.1                          5.0                         1.1      22%

    Other interest expense, net                                               13.4                         13.4                           -            -   %

    Swap interest expense                                                      0.6                          0.8                       (0.2)   (25)%

    Total other expenses, net                                                 20.1                         19.2                         0.9       5%
                                                                              ----                         ----

    INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES                     51.5                         58.9                       (7.4)   (13)%

    Income tax expense                                                        19.6                         22.3                       (2.7)   (12)%
                                                                              ----                         ----

    INCOME FROM CONTINUING OPERATIONS                                         31.9                         36.6                       (4.7)   (13)%

    Discontinued operations, net of tax                                          -                         0.1                       (0.1)  (100)%
                                                                               ---                         ---

    NET INCOME                                                                         $31.9                                $36.7            $(4.8)           (13)%
                                                                                       =====                                =====

    EARNINGS PER COMMON SHARE:

    Basic-

    Continuing operations                                                              $1.53                                $1.66           $(0.13)            (8)%

    Discontinued operations                                                      -                           -                          -            -   %
                                                                               ---                         ---

    Net income                                                                         $1.53                                $1.66           $(0.13)            (8)%
                                                                                       =====                                =====

    Diluted-

    Continuing operations                                                              $1.52                                $1.65           $(0.13)            (8)%

    Discontinued operations                                                      -                           -                          -            -   %
                                                                               ---                         ---

    Net income                                                                         $1.52                                $1.65           $(0.13)            (8)%
                                                                                       =====                                =====

    WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

    Basic                                                                     20.8                         22.1                       (1.3)    (6)%

    Stock options                                                              0.1                            -                        0.1             -   %

    Restricted stock                                                           0.1                          0.1                           -            -   %
                                                                               ---                          ---

    Performance share units                                                   21.0                         22.2                       (1.2)    (5)%
                                                                              ====                         ====

    Diluted


    ______________________________

    NM-Not Meaningful


    ASBURY AUTOMOTIVE GROUP, INC.

    KEY OPERATING HIGHLIGHTS (In millions, except per unit data)

    (Unaudited)


                                                                       For the Three Months               Increase             %
                                                                          Ended June 30,                 (Decrease)         Change


                                                                      2017                  2016
                                                                      ----                  ----

    Unit sales
    ----------

    New vehicle:

    Luxury                                                           5,504                         5,782                         (278)        (5)%

    Import                                                          14,833                        14,808                            25            -  %

    Domestic                                                         4,794                         5,175                         (381)        (7)%
                                                                     -----                         -----

         Total new vehicle                                          25,131                        25,765                         (634)        (2)%

    Used vehicle retail                                             20,263                        19,612                           651           3%

    Used to new ratio                                                80.6%                        76.1%                          450    bps

    Average selling price
    ---------------------

    New vehicle                                                               $35,132                               $34,815                   $317         1%

    Used vehicle retail                                             21,231                        21,329                          (98)           -  %

    Average gross profit per unit
    -----------------------------

    New vehicle:

    Luxury                                                                     $3,307                                $3,615                 $(308)      (9)%

    Import                                                             944                         1,189                         (245)       (21)%

    Domestic                                                         1,836                         1,739                            97           6%

    Total new vehicle                                                1,631                         1,844                         (213)       (12)%

    Used vehicle                                                     1,604                         1,774                         (170)       (10)%

    Finance and insurance, net                                       1,518                         1,430                            88           6%

    Front end yield (1)                                              3,137                         3,244                         (107)        (3)%

    Gross margin
    ------------

    New vehicle:

    Luxury                                                            6.3%                         6.9%                         (60)   bps

    Import                                                            3.4%                         4.3%                         (90)   bps

    Domestic                                                          4.9%                         4.8%                           10    bps

    Total new vehicle                                                 4.6%                         5.3%                         (70)   bps

    Used vehicle retail                                               7.6%                         8.3%                         (70)   bps

    Parts and service                                                62.0%                        62.0%                            -   bps

    Total gross profit margin                                        16.4%                        16.4%                            -   bps

    SG&A metrics
    ------------

    Rent expense                                                                 $6.8                                  $7.6                 $(0.8)     (11)%

    Total SG&A as a percentage of gross profit                       69.5%                        68.1%                          140    bps

    SG&A, excluding rent expense as a percentage of gross profit     66.9%                        65.3%                          160    bps

    Operating metrics
    -----------------

    Income from operations as a percentage of revenue                 4.4%                         4.8%                         (40)   bps

    Income from operations as a percentage of gross profit           26.8%                        29.2%                        (240)   bps

    Adjusted income from operations as a percentage of revenue        4.5%                         4.8%                         (30)   bps

    Adjusted income from operations as a percentage of gross profit  27.6%                        29.2%                        (160)   bps

    Revenue mix
    -----------

    New vehicle                                                      54.1%                        55.1%

    Used vehicle retail                                              26.4%                        25.7%

    Used vehicle wholesale                                            3.0%                         3.2%

    Parts and service                                                12.3%                        12.0%

    Finance and insurance                                             4.2%                         4.0%
                                                                       ---                           ---

         Total revenue                                              100.0%                       100.0%
                                                                     =====                         =====

    Gross profit mix
    ----------------

    New vehicle                                                      15.4%                        17.8%

    Used vehicle retail                                              12.1%                        12.9%

    Used vehicle wholesale                                            0.1%                       (0.2)%

    Parts and service                                                46.6%                        45.2%

    Finance and insurance                                            25.8%                        24.3%
                                                                      ----                          ----

         Total gross profit                                         100.0%                       100.0%
                                                                     =====                         =====


    _____________________________

             (1)    Front end yield is calculated as gross profit from new vehicles,
                     used retail vehicles and finance and insurance (net), divided by
                     combined new and used retail unit sales.


    ASBURY AUTOMOTIVE GROUP, INC.

    SAME STORE OPERATING HIGHLIGHTS (In millions)

    (Unaudited)


                                                                                                                                                               For the Three Months                       Increase                     %
                                                                                                                                                                  Ended June 30,                         (Decrease)                 Change


                                                                                                                                                             2017                      2016
                                                                                                                                                             ----                      ----

    Revenue
    -------

    New vehicle:

    Luxury                                                                                                                                                             $291.1                                             $294.9                                          $(3.8)     (1)%

    Import                                                                                                                                                  402.7                                 388.2                                   14.5                                 4%

    Domestic                                                                                                                                                163.2                                 175.5                                 (12.3)                              (7)%
                                                                                                                                                            -----                                 -----

         Total new vehicle                                                                                                                                  857.0                                 858.6                                  (1.6)                                 -  %

    Used Vehicle:

    Retail                                                                                                                                                  416.4                                 396.4                                   20.0                                 5%

    Wholesale                                                                                                                                                47.4                                  49.7                                  (2.3)                              (5)%
                                                                                                                                                             ----                                  ----

         Total used vehicle                                                                                                                                 463.8                                 446.1                                   17.7                                 4%

    Parts and service                                                                                                                                       197.1                                 185.6                                   11.5                                 6%

    Finance and insurance                                                                                                                                    66.8                                  61.9                                    4.9                                 8%
                                                                                                                                                             ----                                  ----

    Total revenue                                                                                                                                                    $1,584.7                                           $1,552.2                                           $32.5        2%
                                                                                                                                                                     ========                                           ========


    Gross profit
    ------------

    New vehicle:

    Luxury                                                                                                                                                              $18.2                                              $20.4                                          $(2.2)    (11)%

    Import                                                                                                                                                   13.8                                  17.0                                  (3.2)                             (19)%

    Domestic                                                                                                                                                  7.6                                   8.4                                  (0.8)                             (10)%
                                                                                                                                                              ---                                   ---

         Total new vehicle                                                                                                                                   39.6                                  45.8                                  (6.2)                             (14)%

    Used Vehicle:

    Retail                                                                                                                                                   31.1                                  33.1                                  (2.0)                              (6)%

    Wholesale                                                                                                                                                 0.2                                 (0.8)                                   1.0                               125%
                                                                                                                                                              ---                                  ----

         Total used vehicle                                                                                                                                  31.3                                  32.3                                  (1.0)                              (3)%

    Parts and service:

    Customer pay                                                                                                                                             67.9                                  65.1                                    2.8                                 4%

    Warranty                                                                                                                                                 20.4                                  16.6                                    3.8                                23%

    Wholesale parts                                                                                                                                           5.2                                   4.8                                    0.4                                 8%
                                                                                                                                                              ---                                   ---

         Parts and service, excluding reconditioning and preparation                                                                                         93.5                                  86.5                                    7.0                                 8%

    Reconditioning and preparation                                                                                                                           28.5                                  29.0                                  (0.5)                              (2)%

      Total parts and service                                                                                                                               122.0                                 115.5                                    6.5                                 6%

    Finance and insurance                                                                                                                                    66.8                                  61.9                                    4.9                                 8%
                                                                                                                                                             ----                                  ----

    Total gross profit                                                                                                                                                 $259.7                                             $255.5                                            $4.2        2%
                                                                                                                                                                       ======                                             ======


    SG&A expense                                                                                                                                                       $180.4                                             $174.0                                            $6.4        4%
                                                                                                                                                                       ======                                             ======

    SG&A expense as a percentage of gross profit                                                                                                            69.5%                                68.1%                                   140    bps
                                                                                                                                                             ====                                  ====


    _____________________________

    Same store amounts consist of information from dealerships for identical months in each comparative period, commencing with the first month we owned the dealership. Additionally, amounts related to divested dealerships are excluded from each comparative period.


    ASBURY AUTOMOTIVE GROUP, INC.

    SAME STORE OPERATING HIGHLIGHTS (Continued)

    (Unaudited)


                                                                   For the Three Months              Increase             %
                                                                      Ended June 30,                (Decrease)         Change


                                                                  2017                  2016
                                                                  ----                  ----

    Unit sales
    ----------

    New vehicle:

    Luxury                                                       5,504                        5,672                         (168)        (3)%

    Import                                                      14,572                       14,166                           406           3%

    Domestic                                                     4,293                        4,770                         (477)       (10)%
                                                                 -----                        -----

         Total new vehicle                                      24,369                       24,608                         (239)        (1)%

    Used vehicle retail                                         19,531                       18,465                         1,066           6%

    Used to new ratio                                            80.1%                       75.0%                          510    bps


    Average selling price
    ---------------------

    New vehicle                                                           $35,168                              $34,891                   $277     1%

    Used vehicle retail                                         21,320                       21,468                         (148)        (1)%


    Average gross profit per unit
    -----------------------------

    New vehicle:

    Luxury                                                                 $3,307                               $3,597                 $(290)  (8)%

    Import                                                         947                        1,200                         (253)       (21)%

    Domestic                                                     1,770                        1,761                             9           1%

    Total new vehicle                                            1,625                        1,861                         (236)       (13)%

    Used vehicle retail                                          1,592                        1,793                         (201)       (11)%

    Finance and insurance, net                                   1,522                        1,437                            85           6%

    Front end yield (1)                                          3,132                        3,269                         (137)        (4)%


    Gross margin
    ------------

    New vehicle:

    Luxury                                                        6.3%                        6.9%                         (60)   bps

    Import                                                        3.4%                        4.4%                        (100)   bps

    Domestic                                                      4.7%                        4.8%                         (10)   bps

    Total new vehicle                                             4.6%                        5.3%                         (70)   bps

    Used vehicle retail                                           7.5%                        8.4%                         (90)   bps

    Parts and service:

    Parts and service, excluding reconditioning and preparation  47.4%                       46.6%                           80    bps

    Parts and service, including reconditioning and preparation  61.9%                       62.2%                         (30)   bps

    Total gross profit margin                                    16.4%                       16.5%                         (10)   bps


    _____________________________

    Same store amounts consist of information from dealerships for
     identical months in each comparative period, commencing with
     the first month we owned the dealership. Additionally, amounts
     related to divested dealerships are excluded from each
     comparative period.


                                                                    (1) Front end yield is calculated as gross profit from new vehicles,
                                                                         used retail vehicles and finance and insurance (net), divided by
                                                                         combined new and used retail unit sales.


    ASBURY AUTOMOTIVE GROUP, INC.

    CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share data)

    (Unaudited)


                                                                                For the Six Months               Increase             %
                                                                                  Ended June 30,                (Decrease)          Change


                                                                              2017                 2016
                                                                              ----                 ----

    REVENUE:

    New vehicle                                                                       $1,715.4                             $1,735.4           $(20.0)      (1)%

    Used vehicle:

    Retail                                                                   845.6                        831.4                          14.2       2%

    Wholesale                                                                 95.4                         99.7                         (4.3)    (4)%

         Total used vehicle                                                  941.0                        931.1                           9.9       1%

    Parts and service                                                        392.3                        384.5                           7.8       2%

    Finance and insurance, net                                               134.8                        127.2                           7.6       6%
                                                                             -----                        -----

    TOTAL REVENUE                                                          3,183.5                      3,178.2                           5.3        -   %

    GROSS PROFIT:

    New vehicle                                                               81.4                         92.2                        (10.8)   (12)%

    Used vehicle:

    Retail                                                                    65.5                         69.5                         (4.0)    (6)%

    Wholesale                                                                  1.1                          0.5                           0.6     120%

         Total used vehicle                                                   66.6                         70.0                         (3.4)    (5)%

    Parts and service                                                        244.4                        239.0                           5.4       2%

    Finance and insurance, net                                               134.8                        127.2                           7.6       6%
                                                                             -----                        -----

    TOTAL GROSS PROFIT                                                       527.2                        528.4                         (1.2)       -   %

    OPERATING EXPENSES (INCOME):

    Selling, general and administrative                                      366.7                        363.5                           3.2       1%

    Depreciation and amortization                                             15.9                         15.2                           0.7       5%

    Other operating expenses (income), net                                     0.7                          2.7                         (2.0)   (74)%
                                                                               ---                          ---

    INCOME FROM OPERATIONS                                                   143.9                        147.0                         (3.1)    (2)%

    OTHER EXPENSES:

    Floor plan interest expense                                               11.3                          9.4                           1.9      20%

    Other interest expense, net                                               26.8                         26.8                             -       -   %

    Swap interest expense                                                      1.2                          1.6                         (0.4)   (25)%

    Total other expenses, net                                                 39.3                         37.8                           1.5       4%
                                                                              ----                         ----

    INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES                    104.6                        109.2                         (4.6)    (4)%

    Income tax expense                                                        38.7                         41.5                         (2.8)    (7)%
                                                                              ----                         ----

    INCOME FROM CONTINUING OPERATIONS                                         65.9                         67.7                         (1.8)    (3)%

    Discontinued operations, net of tax                                          -                           -                            -       -   %
                                                                               ---                         ---

    NET INCOME                                                                           $65.9                                $67.7            $(1.8)      (3)%
                                                                                         =====                                =====

    EARNINGS PER COMMON SHARE:

    Basic-

    Continuing operations                                                                $3.15                                $2.92             $0.23         8%

    Discontinued operations                                                      -                           -                            -       -   %
                                                                               ---                         ---

    Net income                                                                           $3.15                                $2.92             $0.23         8%
                                                                                         =====                                =====

    Diluted-

    Continuing operations                                                                $3.12                                $2.91             $0.21         7%

    Discontinued operations                                                      -                           -                            -       -   %
                                                                               ---                         ---

    Net income                                                                           $3.12                                $2.91             $0.21         7%
                                                                                         =====                                =====

    WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

    Basic                                                                     20.9                         23.2                         (2.3)   (10)%

    Restricted stock                                                           0.1                            -                          0.1        -   %

    Performance share units                                                    0.1                          0.1                             -       -   %
                                                                               ---                          ---

    Diluted                                                                   21.1                         23.3                         (2.2)    (9)%
                                                                              ====                         ====


    ASBURY AUTOMOTIVE GROUP, INC.

    KEY OPERATING HIGHLIGHTS (In millions, except per unit data)

    (Unaudited)


                                                                        For the Six Months               Increase             %
                                                                          Ended June 30,                (Decrease)         Change


                                                                      2017                 2016
                                                                      ----                 ----

    Unit sales
    ----------

    New vehicle:

    Luxury                                                          10,618                       11,408                         (790)        (7)%

    Import                                                          28,507                       28,292                           215           1%

    Domestic                                                         9,472                       10,094                         (622)        (6)%
                                                                     -----                       ------

         Total new vehicle                                          48,597                       49,794                       (1,197)        (2)%

    Used vehicle retail                                             40,330                       39,348                           982           2%

    Used to new ratio                                                83.0%                       79.0%                          400    bps

    Average selling price
    ---------------------

    New vehicle                                                               $35,298                              $34,852                   $446      1%

    Used vehicle retail                                             20,967                       21,129                         (162)        (1)%

    Average gross profit per unit
    -----------------------------

    New vehicle:

    Luxury                                                                     $3,419                               $3,559                 $(140)   (4)%

    Import                                                             993                        1,223                         (230)       (19)%

    Domestic                                                         1,774                        1,684                            90           5%

    Total new vehicle                                                1,675                        1,852                         (177)       (10)%

    Used vehicle                                                     1,624                        1,766                         (142)        (8)%

    Finance and insurance, net                                       1,516                        1,427                            89           6%

    Front end yield (1)                                              3,168                        3,241                          (73)        (2)%

    Gross margin
    ------------

    New vehicle:

    Luxury                                                            6.4%                        6.9%                         (50)   bps

    Import                                                            3.6%                        4.4%                         (80)   bps

    Domestic                                                          4.7%                        4.7%                            -   bps

    Total new vehicle                                                 4.7%                        5.3%                         (60)   bps

    Used vehicle retail                                               7.7%                        8.4%                         (70)   bps

    Parts and service                                                62.3%                       62.2%                           10    bps

    Total gross profit margin                                        16.6%                       16.6%                            -   bps

    SG&A metrics
    ------------

    Rent expense                                                                $13.7                                $15.4                 $(1.7)  (11)%

    Total SG&A as a percentage of gross profit                       69.6%                       68.8%                           80    bps

    SG&A, excluding rent expense as a percentage of gross profit     67.0%                       65.9%                          110    bps

    Operating metrics
    -----------------

    Income from operations as a percentage of revenue                 4.5%                        4.6%                         (10)   bps

    Income from operations as a percentage of gross profit           27.3%                       27.8%                         (50)   bps

    Adjusted income from operations as a percentage of revenue        4.6%                        4.7%                         (10)   bps

    Adjusted income from operations as a percentage of gross profit  27.5%                       28.5%                        (100)   bps

    Revenue mix
    -----------

    New vehicle                                                      53.9%                       54.6%

    Used vehicle retail                                              26.6%                       26.2%

    Used vehicle wholesale                                            3.0%                        3.1%

    Parts and service                                                12.3%                       12.1%

    Finance and insurance                                             4.2%                        4.0%
                                                                       ---                          ---

         Total revenue                                              100.0%                      100.0%
                                                                     =====                        =====

    Gross profit mix
    ----------------

    New vehicle                                                      15.4%                       17.4%

    Used vehicle retail                                              12.4%                       13.2%

    Used vehicle wholesale                                            0.2%                        0.1%

    Parts and service                                                46.4%                       45.2%

    Finance and insurance                                            25.6%                       24.1%
                                                                      ----                         ----

         Total gross profit                                         100.0%                      100.0%
                                                                     =====                        =====


    _____________________________

             (1)    Front end yield is calculated as gross profit from new vehicles,
                     used retail vehicles and finance and insurance (net), divided by
                     combined new and used retail unit sales.


    ASBURY AUTOMOTIVE GROUP, INC.

    SAME STORE OPERATING HIGHLIGHTS (In millions)

    (Unaudited)


                                                                                                                                                                For the Six Months                        Increase                     %
                                                                                                                                                                  Ended June 30,                         (Decrease)                 Change


                                                                                                                                                             2017                      2016
                                                                                                                                                             ----                      ----

    Revenue
    -------

    New vehicle:

    Luxury                                                                                                                                                             $564.0                                             $579.6                                          $(15.6)    (3)%

    Import                                                                                                                                                  780.1                                 743.9                                   36.2                                  5%

    Domestic                                                                                                                                                328.1                                 340.5                                 (12.4)                               (4)%
                                                                                                                                                            -----                                 -----

         Total new vehicle                                                                                                                                1,672.2                               1,664.0                                    8.2                                   - %

    Used Vehicle:

    Retail                                                                                                                                                  822.3                                 785.9                                   36.4                                  5%

    Wholesale                                                                                                                                                92.3                                  95.5                                  (3.2)                               (3)%
                                                                                                                                                             ----                                  ----

         Total used vehicle                                                                                                                                 914.6                                 881.4                                   33.2                                  4%

    Parts and service                                                                                                                                       386.1                                 364.8                                   21.3                                  6%

    Finance and insurance                                                                                                                                   131.4                                 121.1                                   10.3                                  9%
                                                                                                                                                            -----                                 -----

    Total revenue                                                                                                                                                    $3,104.3                                           $3,031.3                                            $73.0       2%
                                                                                                                                                                     ========                                           ========


    Gross profit
    ------------

    New vehicle:

    Luxury                                                                                                                                                              $36.3                                              $39.7                                           $(3.4)    (9)%

    Import                                                                                                                                                   28.0                                  33.4                                  (5.4)                              (16)%

    Domestic                                                                                                                                                 14.7                                  15.9                                  (1.2)                               (8)%
                                                                                                                                                             ----                                  ----

         Total new vehicle                                                                                                                                   79.0                                  89.0                                 (10.0)                              (11)%

    Used Vehicle:

    Retail                                                                                                                                                   63.0                                  65.6                                  (2.6)                               (4)%

    Wholesale                                                                                                                                                 1.1                                   0.5                                    0.6                                120%
                                                                                                                                                              ---                                   ---

         Total used vehicle                                                                                                                                  64.1                                  66.1                                  (2.0)                               (3)%

    Parts and service:

    Customer pay                                                                                                                                            133.2                                 128.2                                    5.0                                  4%

    Warranty                                                                                                                                                 40.5                                  33.1                                    7.4                                 22%

    Wholesale parts                                                                                                                                          10.4                                   9.8                                    0.6                                  6%
                                                                                                                                                             ----                                   ---

         Parts and service, excluding reconditioning and preparation                                                                                        184.1                                 171.1                                   13.0                                  8%

    Reconditioning and preparation                                                                                                                           56.1                                  56.8                                  (0.7)                               (1)%
                                                                                                                                                             ----                                  ----

      Total parts and service                                                                                                                               240.2                                 227.9                                   12.3                                  5%

    Finance and insurance                                                                                                                                   131.4                                 121.1                                   10.3                                  9%
                                                                                                                                                            -----                                 -----

    Total gross profit                                                                                                                                                 $514.7                                             $504.1                                            $10.6       2%
                                                                                                                                                                       ======                                             ======


    SG&A expense                                                                                                                                                       $357.7                                             $346.2                                            $11.5       3%
                                                                                                                                                                       ======                                             ======

    SG&A expense as a percentage of gross profit                                                                                                            69.5%                                68.7%                                    80    bps
                                                                                                                                                             ====                                  ====


    _____________________________

    Same store amounts consist of information from dealerships for identical months in each comparative period, commencing with the first month we owned the dealership. Additionally, amounts related to divested dealerships are excluded from each comparative period.


    ASBURY AUTOMOTIVE GROUP, INC.

    SAME STORE OPERATING HIGHLIGHTS (Continued)

    (Unaudited)


                                                                    For the Six Months              Increase             %
                                                                      Ended June 30,               (Decrease)         Change


                                                                  2017                 2016
                                                                  ----                 ----

    Unit sales
    ----------

    New vehicle:

    Luxury                                                      10,618                      11,189                         (571)        (5)%

    Import                                                      28,138                      27,080                         1,058           4%

    Domestic                                                     8,574                       9,357                         (783)        (8)%
                                                                 -----                       -----

         Total new vehicle                                      47,330                      47,626                         (296)        (1)%

    Used vehicle retail                                         39,086                      36,912                         2,174           6%

    Used to new ratio                                            82.6%                      77.5%                          510    bps


    Average selling price
    ---------------------

    New vehicle                                                           $35,331                             $34,939                   $392     1%

    Used vehicle retail                                         21,038                      21,291                         (253)        (1)%


    Average gross profit per unit
    -----------------------------

    New vehicle:

    Luxury                                                                 $3,419                              $3,548                 $(129)  (4)%

    Import                                                         995                       1,233                         (238)       (19)%

    Domestic                                                     1,714                       1,699                            15           1%

    Total new vehicle                                            1,669                       1,869                         (200)       (11)%

    Used vehicle retail                                          1,612                       1,777                         (165)        (9)%

    Finance and insurance, net                                   1,521                       1,432                            89           6%

    Front end yield (1)                                          3,164                       3,261                          (97)        (3)%


    Gross margin
    ------------

    New vehicle:

    Luxury                                                        6.4%                       6.8%                         (40)   bps

    Import                                                        3.6%                       4.5%                         (90)   bps

    Domestic                                                      4.5%                       4.7%                         (20)   bps

    Total new vehicle                                             4.7%                       5.3%                         (60)   bps

    Used vehicle retail                                           7.7%                       8.3%                         (60)   bps

    Parts and service:

    Parts and service, excluding reconditioning and preparation  47.7%                      46.9%                           80    bps

    Parts and service, including reconditioning and preparation  62.2%                      62.5%                         (30)   bps

    Total gross profit margin                                    16.6%                      16.6%                            -   bps


    _____________________________

    Same store amounts consist of information from dealerships for
     identical months in each comparative period, commencing with
     the first month we owned the dealership. Additionally, amounts
     related to divested dealerships are excluded from each
     comparative period.


                                                                    (1) Front end yield is calculated as gross profit from new vehicles,
                                                                         used retail vehicles and finance and insurance (net), divided by
                                                                         combined new and used retail unit sales.


    ASBURY AUTOMOTIVE GROUP, INC.

    Additional Disclosures (In millions)

    (Unaudited)


                                                                                                           June 30,                December 31,              Increase              % Change
                                                                                                                2017                        2016
                                                                                                                                                             (Decrease)
                                                                                                                                                                                            ---

    SELECTED BALANCE SHEET DATA

    Cash and cash equivalents                                                                                               $2.7                                            $3.4                    $(0.7)                      (21)%

    New vehicle inventory                                                                                      740.5                                   720.6                       19.9                  3%

    Used vehicle inventory                                                                                     147.1                                   132.7                       14.4                 11%

    Parts inventory                                                                                             42.8                                    41.6                        1.2                  3%

    Total current assets                                                                                     1,318.0                                 1,332.4                     (14.4)               (1)%

    Floor plan notes payable                                                                                   820.7                                   781.8                       38.9                  5%

    Total current liabilities                                                                                1,103.2                                 1,104.9                      (1.7)                            -   %


    CAPITALIZATION:

    Long-term debt (including current portion)                                                                            $919.4                                          $926.7                    $(7.3)                       (1)%

    Shareholders' equity                                                                                       318.1                                   279.7                       38.4                 14%
                                                                                                               -----                                   -----

    Total                                                                                                               $1,237.5                                        $1,206.4                     $31.1                          3%
                                                                                                                        ========                                        ========




                                                                                                                                                                                                June 30, 2017 December 31, 2016
                                                                                                                                                                                                ------------- -----------------

    DAYS SUPPLY

    New vehicle inventory                                                                                         74                                      61

    Used vehicle inventory                                                                                        35                                      30


    _____________________________

    Days supply of inventory is calculated based on new and used inventory levels at the end of each reporting period and a 30-day historical cost of sales.


    Brand Mix - New Vehicle Revenue by Brand-


                                              For the Six Months
                                                Ended June 30,

                                                            2017 2016
                                                            ---- ----

    Luxury:

    Mercedes-Benz                                             7%        7%

    Lexus                                                     6%        7%

    BMW                                                       5%        7%

    Acura                                                     4%        4%

    Infiniti                                                  3%        3%

    Other luxury                                              8%        6%
                                                             ---        ---

    Total luxury                                             33%       34%

    Imports:

    Honda                                                    18%       17%

    Nissan                                                   12%       10%

    Toyota                                                   11%       12%

    Other imports                                             5%        6%
                                                             ---        ---

    Total imports                                            46%       45%

    Domestic:

    Ford                                                     11%       14%

    Chevrolet                                                 4%        2%

    Dodge                                                     3%        2%

    Other domestics                                           3%        3%
                                                             ---        ---

    Total domestic                                           21%       21%

    Total New Vehicle Revenue                               100%      100%
                                                             ===        ===


    ASBURY AUTOMOTIVE GROUP INC.

    Supplemental Disclosures

    (Unaudited)


    Non-GAAP Financial Disclosure and Reconciliation


    In addition to evaluating the financial condition and results of our operations in accordance with GAAP, from time to time management evaluates and analyzes results and any impact on the Company of strategic decisions
     and actions relating to, among other things, cost reduction, growth, and profitability improvement initiatives, and other events outside of normal, or "core," business and operations, by considering certain alternative
     financial measures not prepared in accordance with GAAP. These measures include "Adjusted leverage ratio," "Adjusted income from operations," "Adjusted income from continuing operations," " Adjusted operating margins,"
     and "Adjusted diluted earnings per share ("EPS") from continuing operations." Further, management assesses the organic growth of our revenue and gross profit on a same store basis. We believe that our assessment on a
     same store basis represents an important indicator of comparative financial performance and provides relevant information to assess our performance at our existing locations. Same store amounts consist of information
     from dealerships for identical months in each comparative period, commencing with the first month we owned the dealership. Additionally, amounts related to divested dealerships are excluded from each comparative
     period. Non-GAAP measures do not have definitions under GAAP and may be defined differently by and not be comparable to similarly titled measures used by other companies. As a result, any non-GAAP financial measures
     considered and evaluated by management are reviewed in conjunction with a review of the most directly comparable measures calculated in accordance with GAAP. Management cautions investors not to place undue reliance on
     such non-GAAP measures, but also to consider them with the most directly comparable GAAP measures. In their evaluation of results from time to time, management excludes items that do not arise directly from core
     operations, or are otherwise of an unusual or non-recurring nature. Because these non-core, unusual or non-recurring charges and gains materially affect Asbury's financial condition or results in the specific period
     in which they are recognized, management also evaluates, and makes resource allocation and performance evaluation decisions based on, the related non-GAAP measures excluding such items.  In addition to using such non-



    The following tables provide reconciliations for our non-GAAP metrics:


                                                                                                                                                               For the Twelve Months Ended

                                                                                                                                                          June 30, 2017             March 31, 2017
                                                                                                                                                          -------------             --------------

                                                                                                                                                                  (Dollars in millions)

    Adjusted leverage ratio:
    ------------------------

    Long-term debt (including current portion)                                                                                                                             $919.4                                               $923.0


    Calculation of earnings before interest, taxes, depreciation and amortization ("EBITDA"):

    Income from continuing operations                                                                                                                                      $165.4                                               $170.2


    Add:

    Depreciation and amortization                                                                                                                                  31.5                                    31.0

    Income tax expense                                                                                                                                             97.8                                   100.4

    Swap and other interest expense                                                                                                                                55.9                                    56.0
                                                                                                                                                                   ----                                    ----

    Earnings before interest, taxes, depreciation and amortization ("EBITDA")                                                                                              $350.6                                               $357.6
                                                                                                                                                                           ======                                               ======


    Non-core items - (income) expense:

    Legal settlements                                                                                                                                                      $(7.5)                                              $(7.5)

    Real estate-related charges                                                                                                                                     5.2                                     2.3

    Gain on divestitures                                                                                                                                         (45.5)                                 (45.5)

    Investment income                                                                                                                                             (0.8)

      Total non-core items                                                                                                                                       (48.6)                                 (50.7)


    Adjusted EBITDA                                                                                                                                                        $302.0                                               $306.9
                                                                                                                                                                           ======                                               ======


    Adjusted leverage ratio                                                                                                                                         3.0                                     3.0
                                                                                                                                                                    ===                                     ===



                                                                                                                                                                  For the Three Months
                                                                                                                                                                     Ended June 30,

                                                                                                                                                                   2017                        2016
                                                                                                                                                                   ----                        ----

                                                                                                                                                              (In millions, except per share
                                                                                                                                                                          data)

    Adjusted income from operations:
    --------------------------------

    Income from operations                                                                                                                                                  $71.6                                                $78.1

    Real estate-related charges                                                                                                                                     2.9                                       -

    Investment income                                                                                                                                             (0.8)                                      -

    Adjusted income from operations                                                                                                                                         $73.7                                                $78.1
                                                                                                                                                                            =====                                                =====


    Adjusted income from continuing operations:
    -------------------------------------------

    Income from continuing operations                                                                                                                                       $31.9                                                $36.6


    Non-core items - (income) expense:

    Real estate-related charges                                                                                                                                     2.9                                       -

    Investment income                                                                                                                                             (0.8)                                      -

    Income tax (benefit) expense on non-core items above                                                                                                          (0.8)                                      -
                                                                                                                                                                   ----                                     ---

    Total non-core items                                                                                                                                            1.3                                       -

    Adjusted income from continuing operations                                                                                                                              $33.2                                                $36.6
                                                                                                                                                                            =====                                                =====


    Adjusted diluted earnings per share (EPS) from continuing operations:
    ---------------------------------------------------------------------

    Net income                                                                                                                                                              $1.52                                                $1.65

    Discontinued operations, net of tax                                                                                                                               -                                      -
                                                                                                                                                                    ---                                    ---

    Income from continuing operations                                                                                                                                       $1.52                                                $1.65


    Total non-core items                                                                                                                                           0.06                                       -
                                                                                                                                                                   ----                                     ---

    Adjusted diluted EPS from continuing operations                                                                                                                         $1.58                                                $1.65
                                                                                                                                                                            =====                                                =====


    Weighted average common shares outstanding - diluted                                                                                                           21.0                                    22.2
                                                                                                                                                                   ====                                    ====



                                                                                                                                                                   For the Six Months
                                                                                                                                                                     Ended June 30,

                                                                                                                                                                   2017                        2016
                                                                                                                                                                   ----                        ----

                                                                                                                                                              (In millions, except per share
                                                                                                                                                                          data)

    Adjusted income from operations:
    --------------------------------

    Income from operations                                                                                                                                                 $143.9                                               $147.0

    Real estate-related charges                                                                                                                                     2.9                                     3.4

    Investment income                                                                                                                                             (0.8)                                      -

    Legal settlements                                                                                                                                             (0.9)                                      -

    Adjusted income from operations                                                                                                                                        $145.1                                               $150.4
                                                                                                                                                                           ======                                               ======


    Adjusted income from continuing operations:
    -------------------------------------------

    Income from continuing operations                                                                                                                                       $65.9                                                $67.7


    Non-core items - (income) expense:

    Real estate-related charges                                                                                                                                     2.9                                     3.4

    Investment income                                                                                                                                             (0.8)                                      -

    Legal settlements                                                                                                                                             (0.9)                                      -

    Income tax (benefit) expense on non-core items above                                                                                                          (0.5)                                  (1.3)
                                                                                                                                                                   ----                                    ----

    Total non-core items                                                                                                                                            0.7                                     2.1

    Adjusted income from continuing operations                                                                                                                              $66.6                                                $69.8
                                                                                                                                                                            =====                                                =====


    Adjusted diluted earnings per share (EPS) from continuing operations:
    ---------------------------------------------------------------------

    Net income                                                                                                                                                              $3.12                                                $2.91

    Discontinued operations, net of tax                                                                                                                               -                                      -
                                                                                                                                                                    ---                                    ---

    Income from continuing operations                                                                                                                                       $3.12                                                $2.91


    Total non-core items                                                                                                                                           0.04                                    0.09
                                                                                                                                                                   ----                                    ----

    Adjusted diluted EPS from continuing operations                                                                                                                         $3.16                                                $3.00
                                                                                                                                                                            =====                                                =====


    Weighted average common shares outstanding - diluted                                                                                                           21.1                                    23.3
                                                                                                                                                                   ====                                    ====

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SOURCE Asbury Automotive Group, Inc.