Asbury Automotive Group Announces 2019 Third Quarter Financial Results
DULUTH, Ga., Oct. 22, 2019 /PRNewswire/ -- Asbury Automotive Group, Inc. (NYSE: ABG), one of the largest automotive retail and service companies in the U.S., reported net income for the third quarter 2019 of $45.0 million ($2.33 per diluted share). There were no adjustments in the third quarter. This compares to net income of $44.3 million ($2.18 per diluted share) in the prior year quarter and adjusted net income of $44.9 million ($2.21 per diluted share).
Net income for the third quarter 2018 was adjusted for a 2017 Tax Act adjustment of $0.6 million ($0.03 per diluted share).
"We delivered a very strong quarter. We grew revenue 5%, delivered 9% parts and service gross profit growth, grew F&I gross profit by 10%, and grew adjusted EPS 5%," said David Hult, Asbury's President and Chief Executive Officer. "During the quarter, we expanded our business by acquiring a Toyota store in Indianapolis and a Subaru store in Denver. We expect these stores to generate approximately $175 million in combined annual revenues."
Third Quarter 2019 Operational Summary
Total company:
-- Total revenue increased 5%; gross profit increased 5%
-- Gross margin increased 10 basis points to 15.9%
-- SG&A as a percentage of gross profit increased 100 basis points to 68.9%
-- Adjusted operating margin 4.5%
-- Adjusted EPS from continuing operations increased 5%
Same store:
-- Total revenue increased 2%; gross profit increased 3%
-- Gross margin increased 20 basis points to 16.0%
-- New vehicle revenue decreased 3%; gross profit decreased 12%
-- Used vehicle retail revenue increased 9%; gross profit decreased 1%
-- Finance and insurance revenue and gross profit increased 8%
-- Parts and service revenue increased 8%; gross profit increased 7%
Strategic Highlights:
-- Acquired a Toyota store in the Indianapolis market and a Subaru store in
the Colorado market. We expect these stores to generate approximately
$175 million in combined annual revenues.
-- Repurchased $4 million of common stock
Additional commentary regarding the third quarter results will be provided during the earnings conference call on October 22, 2019 at 10:00 a.m. The conference call will be simulcast live on the internet and can be accessed at www.asburyauto.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 (323) 994-2093 (domestic), or (866) 575-6539 (international); passcode - 3004343. 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 - 3004343.
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 88 dealerships, consisting of 107 franchises, representing 31 domestic and foreign brands of vehicles. Asbury also operates 25 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 September 30, (Decrease) Change
2019 2018
REVENUE:
New vehicle $
986.9 $
980.5 $
6.4 1
%
Used vehicle:
Retail 505.0 448.7 56.3 13
%
Wholesale 41.9 48.8 (6.9) (14)
%
Total used vehicle 546.9 497.5 49.4 10
%
Parts and service 227.6 206.1 21.5 10
%
Finance and insurance, net 80.6 73.3 7.3 10
%
TOTAL REVENUE 1,842.0 1,757.4 84.6 5
%
GROSS PROFIT:
New vehicle 38.6 42.1 (3.5) (8)
%
Used vehicle:
Retail 33.9 32.7 1.2 4
%
Wholesale (1.5) 0.1 (1.6)
NM
Total used vehicle 32.4 32.8 (0.4) (1)
%
Parts and service 141.5 129.8 11.7 9
%
Finance and insurance, net 80.6 73.3 7.3 10
%
TOTAL GROSS PROFIT 293.1 278.0 15.1 5
%
OPERATING EXPENSES:
Selling, general and administrative 202.0 188.8 13.2 7
%
Depreciation and amortization 9.1 8.5 0.6 7
%
Other operating (income) expenses, net (0.2) (0.1) (0.1) (100)
%
INCOME FROM OPERATIONS 82.2 80.8 1.4 2
%
OTHER EXPENSES (INCOME):
Floor plan interest expense 9.0 8.4 0.6 7
%
Other interest expense, net 13.7 13.2 0.5 4
%
Swap interest expense - 0.1 (0.1)
%
Total other expenses, net 22.7 21.7 1.0 5
%
INCOME BEFORE INCOME TAXES 59.5 59.1 0.4 1
%
Income tax expense 14.5 14.8 (0.3) (2)
%
NET INCOME $
45.0 $
44.3 $
0.7 2
%
EARNINGS PER COMMON SHARE:
Basic-
Net income $
2.36 $
2.22 $
0.14 6
%
Diluted-
Net income $
2.33 $
2.18 $
0.15 7
%
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic 19.1 20.0 (0.9) (5)
%
Restricted stock 0.1 0.1
%
Performance share units 0.1 0.2 (0.1) (50)
%
Diluted 19.3 20.3 (1.0) (5)
%
______________________________
NM-Not Meaningful
ASBURY AUTOMOTIVE GROUP, INC.
KEY OPERATING HIGHLIGHTS (In millions, except per unit data)
(Unaudited)
For the Three Months Increase %
Ended September 30, (Decrease) Change
2019 2018
Unit sales
---
New vehicle:
Luxury 6,025 5,685 340 6
%
Import 15,998 17,046 (1,048) (6)
%
Domestic 5,055 5,019 36 1
%
Total new vehicle 27,078 27,750 (672) (2)
%
Used vehicle retail 22,988 20,824 2,164 10
%
Used to new ratio 84.9 75.0
% % 990 bps
Average selling price
---
New vehicle $
36,447 $
35,333 $
1,114 3
%
Used vehicle retail 21,968 21,547 421 2
%
Average gross profit per unit
---
New vehicle:
Luxury $
3,270 $
3,272 $
(2) %
Import 638 903 (265) (29)
%
Domestic 1,721 1,614 107 7
%
Total new vehicle 1,426 1,517 (91) (6)
%
Used vehicle retail 1,475 1,570 (95) (6)
%
Finance and insurance, net 1,610 1,509 101 7
%
Front end yield (1) 3,058 3,049 9 %
Gross margin
---
New vehicle:
Luxury 6.1
% 6.2
% (10) bps
Import 2.2
% 3.2
% (100) bps
Domestic 4.2
% 4.1
% 10 bps
Total new vehicle 3.9
% 4.3
% (40) bps
Used vehicle retail 6.7
% 7.3
% (60) bps
Parts and service 62.2 63.0
% % (80) bps
Total gross profit margin 15.9 15.8
% % 10 bps
SG&A metrics
---
Rent expense $
6.7 $
6.4 $
0.3 5
%
Total SG&A as a percentage of gross profit 68.9 67.9
% % 100 bps
SG&A, excluding rent expense as a percentage of gross profit 66.6 65.6
% % 100 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 28.0 29.1
% % (110) bps
Adjusted income from operations as a percentage of revenue 4.5
% 4.6
% (10) bps
Adjusted income from operations as a percentage of gross profit 28.0 29.1
% % (110) bps
Revenue mix
---
New vehicle 53.6 55.8
% %
Used vehicle retail 27.3 25.5
% %
Used vehicle wholesale 2.3
% 2.8
%
Parts and service 12.4 11.7
% %
Finance and insurance 4.4
% 4.2
%
Total revenue 100.0 100.0
% %
Gross profit mix
---
New vehicle 13.2 15.1
% %
Used vehicle retail 11.5 11.8
% %
Used vehicle wholesale (0.5)
% %
Parts and service 48.3 46.7
% %
Finance and insurance 27.5 26.4
% %
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 September 30, (Decrease) Change
2019 2018
Revenue
---
New vehicle:
Luxury $
323.1 $
297.8 $
25.3 8
%
Import 450.8 474.0 (23.2) (5)
%
Domestic 169.2 197.5 (28.3) (14)
%
Total new vehicle 943.1 969.3 (26.2) (3)
%
Used Vehicle:
Retail 481.7 442.4 39.3 9
%
Wholesale 40.5 47.5 (7.0) (15)
%
Total used vehicle 522.2 489.9 32.3 7
%
Parts and service 220.8 203.8 17.0 8
%
Finance and insurance 77.8 72.2 5.6 8
%
Total revenue $
1,763.9 $
1,735.2 $
28.7 2
%
Gross profit
---
New vehicle:
Luxury $
19.7 $
18.7 $
1.0 5
%
Import 10.1 14.8 (4.7) (32)
%
Domestic 6.9 8.1 (1.2) (15)
%
Total new vehicle 36.7 41.6 (4.9) (12)
%
Used Vehicle:
Retail 32.0 32.4 (0.4) (1)
%
Wholesale (1.5) 0.2 (1.7)
NM
Total used vehicle 30.5 32.6 (2.1) (6)
%
Parts and service:
Customer pay 77.0 72.2 4.8 7
%
Warranty 21.6 19.1 2.5 13
%
Wholesale parts 5.8 5.5 0.3 5
%
Parts and service, excluding reconditioning and preparation 104.4 96.8 7.6 8
%
Reconditioning and preparation 32.6 31.5 1.1 3
%
Total parts and service 137.0 128.3 8.7 7
%
Finance and insurance 77.8 72.2 5.6 8
%
Total gross profit $
282.0 $
274.7 $
7.3 3
%
SG&A expense $
194.6 $
186.2 $
8.4 5
%
SG&A expense as a percentage of gross profit 69.0 67.8
% % 120 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 September 30, (Decrease) Change
2019 2018
Unit sales
---
New vehicle:
Luxury 5,993 5,685 308 5
%
Import 15,828 16,619 (791) (5)
%
Domestic 4,165 5,019 (854) (17)
%
Total new vehicle 25,986 27,323 (1,337) (5)
%
Used vehicle retail 21,810 20,511 1,299 6
%
Used to new ratio 83.9 75.1
% % 880 bps
Average selling price
---
New vehicle $
36,293 $
35,476 $
817 2
%
Used vehicle retail 22,086 21,569 517 2
%
Average gross profit per unit
---
New vehicle:
Luxury $
3,287 $
3,289 $
(2) %
Import 638 891 (253) (28)
%
Domestic 1,657 1,614 43 3
%
Total new vehicle 1,412 1,523 (111) (7)
%
Used vehicle retail 1,467 1,580 (113) (7)
%
Finance and insurance, net 1,628 1,509 119 8
%
Front end yield (1) 3,065 3,056 9 %
Gross margin
---
New vehicle:
Luxury 6.1
% 6.3
% (20) bps
Import 2.2
% 3.1
% (90) bps
Domestic 4.1
% 4.1
% -bps
Total new vehicle 3.9
% 4.3
% (40) bps
Used vehicle retail 6.6
% 7.3
% (70) bps
Parts and service:
Parts and service, excluding reconditioning and preparation 47.3 47.5
% % (20) bps
Parts and service, including reconditioning and preparation 62.0 63.0
% % (100) bps
Total gross profit margin 16.0 15.8
% % 20 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 Nine Months Increase %
Ended September 30, (Decrease) Change
2019 2018
REVENUE:
New vehicle $
2,823.9 $
2,766.3 $
57.6 2
%
Used vehicle:
Retail 1,449.8 1,355.4 94.4 7
%
Wholesale 140.6 143.6 (3.0) (2)
%
Total used vehicle 1,590.4 1,499.0 91.4 6
%
Parts and service 669.7 609.9 59.8 10
%
Finance and insurance, net 232.3 215.0 17.3 8
%
TOTAL REVENUE 5,316.3 5,090.2 226.1 4
%
GROSS PROFIT:
New vehicle 114.8 121.3 (6.5) (5)
%
Used vehicle:
Retail 102.2 98.5 3.7 4
%
Wholesale 0.6 1.9 (1.3) (68)
%
Total used vehicle 102.8 100.4 2.4 2
%
Parts and service 417.4 384.5 32.9 9
%
Finance and insurance, net 232.3 215.0 17.3 8
%
TOTAL GROSS PROFIT 867.3 821.2 46.1 6
%
OPERATING EXPENSES:
Selling, general and administrative 593.7 563.6 30.1 5
%
Depreciation and amortization 26.7 25.2 1.5 6
%
Other operating expense (income), net 1.0 (1.2) 2.2
NM
INCOME FROM OPERATIONS 245.9 233.6 12.3 5
%
OTHER EXPENSES (INCOME):
Floor plan interest expense 29.7 23.0 6.7 29
%
Other interest expense, net 41.2 39.4 1.8 5
%
Swap interest expense - 0.5 (0.5) (100)
%
Gain on divestiture (11.7) (11.7) %
Total other expenses, net 59.2 62.9 (3.7) (6)
%
INCOME BEFORE INCOME TAXES 186.7 170.7 16.0 9
%
Income tax expense 45.9 43.1 2.8 6
%
NET INCOME $
140.8 $
127.6 $
13.2 10
%
EARNINGS PER COMMON SHARE:
Basic-
Net income $
7.37 $
6.29 $
1.08 17
%
Diluted-
Net income $
7.30 $
6.22 $
1.08 17
%
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic 19.1 20.3 (1.2) (6)
%
Restricted stock 0.1 0.1 %
Performance share units 0.1 0.1 %
Diluted 19.3 20.5 (1.2) (6)
%
______________________________
NM-Not Meaningful
ASBURY AUTOMOTIVE GROUP, INC.
KEY OPERATING HIGHLIGHTS (In millions, except per unit data)
(Unaudited)
For the Nine Months Increase %
Ended September 30, (Decrease) Change
2019 2018
Unit sales
---
New vehicle:
Luxury 16,933 16,527 406 2
%
Import 45,697 46,545 (848) (2)
%
Domestic 15,006 14,406 600 4
%
Total new vehicle 77,636 77,478 158 %
Used vehicle retail 66,330 63,079 3,251 5
%
Used to new ratio 85.4 81.4
% % 400 bps
Average selling price
---
New vehicle $
36,374 $
35,704 $
670 2
%
Used vehicle retail 21,857 21,487 370 2
%
Average gross profit per unit
---
New vehicle:
Luxury $
3,425 $
3,479 $
(54) (2)
%
Import 689 840 (151) (18)
%
Domestic 1,686 1,715 (29) (2)
%
Total new vehicle 1,479 1,566 (87) (6)
%
Used vehicle retail 1,541 1,562 (21) (1)
%
Finance and insurance, net 1,614 1,530 84 5
%
Front end yield (1) 3,121 3,093 28 1
%
Gross margin
---
New vehicle:
Luxury 6.2
% 6.5
% (30) bps
Import 2.4
% 3.0
% (60) bps
Domestic 4.2
% 4.4
% (20) bps
Total new vehicle 4.1
% 4.4
% (30) bps
Used vehicle retail 7.0
% 7.3
% (30) bps
Parts and service 62.3 63.0
% % (70) bps
Total gross profit margin 16.3 16.1
% % 20 bps
SG&A metrics
---
Rent expense $
20.3 $
19.0 $
1.3 7
%
Total SG&A as a percentage of gross profit 68.5 68.6
% % (10) bps
SG&A, excluding rent expense as a percentage of gross profit 66.1 66.3
% % (20) bps
Operating metrics
---
Income from operations as a percentage of revenue 4.6
% 4.6
% -bps
Income from operations as a percentage of gross profit 28.4 28.4
% % -bps
Adjusted income from operations as a percentage of revenue 4.7
% 4.6
% 10bps
Adjusted income from operations as a percentage of gross profit 28.6 28.4
% % 20 bps
Revenue mix
---
New vehicle 53.1 54.3
% %
Used vehicle retail 27.3 26.7
% %
Used vehicle wholesale 2.6
% 2.8
%
Parts and service 12.6 12.0
% %
Finance and insurance 4.4
% 4.2
%
Total revenue 100.0 100.0
% %
Gross profit mix
---
New vehicle 13.2 14.8
% %
Used vehicle retail 11.8 12.0
% %
Used vehicle wholesale 0.1
% 0.2
%
Parts and service 48.1 46.8
% %
Finance and insurance 26.8 26.2
% %
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 Nine Months Increase %
Ended September 30, (Decrease) Change
2019 2018
Revenue
---
New vehicle:
Luxury $
926.7 $
883.8 $
42.9 5
%
Import 1,260.1 1,284.0 (23.9) (2)
%
Domestic 512.1 563.2 (51.1) (9)
%
Total new vehicle 2,698.9 2,731.0 (32.1) (1)
%
Used Vehicle:
Retail 1,383.4 1,333.1 50.3 4
%
Wholesale 135.9 140.7 (4.8) (3)
%
Total used vehicle 1,519.3 1,473.8 45.5 3
%
Parts and service 648.6 602.1 46.5 8
%
Finance and insurance, net 222.8 210.7 12.1 6
%
Total revenue $
5,089.6 $
5,017.6 $
72.0 1
%
Gross profit
---
New vehicle:
Luxury $
58.1 $
57.5 $
0.6 1
%
Import 30.6 37.8 (7.2) (19)
%
Domestic 20.6 24.7 (4.1) (17)
%
Total new vehicle 109.3 120.0 (10.7) (9)
%
Used Vehicle:
Retail 96.6 97.2 (0.6) (1)
%
Wholesale 0.6 2.0 (1.4) (70)
%
Total used vehicle 97.2 99.2 (2.0) (2)
%
Parts and service:
Customer pay 229.0 215.2 13.8 6
%
Warranty 64.2 56.0 8.2 15
%
Wholesale parts 17.3 16.6 0.7 4
%
Parts and service, excluding reconditioning and preparation 310.5 287.8 22.7 8
%
Reconditioning and preparation 93.1 91.6 1.5 2
%
Total parts and service 403.6 379.4 24.2 6
%
Finance and insurance 222.8 210.7 12.1 6
%
Total gross profit $
832.9 $
809.3 $
23.6 3
%
SG&A expense $
569.4 $
554.4 $
15.0 3
%
SG&A expense as a percentage of gross profit 68.4 68.5
% % (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.
ASBURY AUTOMOTIVE GROUP, INC.
SAME STORE OPERATING HIGHLIGHTS (Continued)
(Unaudited)
For the Nine Months Increase %
Ended September 30, (Decrease) Change
2019 2018
Unit sales
---
New vehicle:
Luxury 16,862 16,527 335 2
%
Import 44,617 45,258 (641) (1)
%
Domestic 12,708 14,406 (1,698) (12)
%
Total new vehicle 74,187 76,191 (2,004) (3)
%
Used vehicle retail 62,917 61,913 1,004 2
%
Used to new ratio 84.8 81.3
% % 350 bps
Average selling price
---
New vehicle $
36,380 $
35,844 $
536 1
%
Used vehicle retail 21,988 21,532 456 2
%
Average gross profit per unit
---
New vehicle:
Luxury $
3,446 $
3,479 $
(33) (1)
%
Import 686 835 (149) (18)
%
Domestic 1,621 1,715 (94) (5)
%
Total new vehicle 1,473 1,575 (102) (6)
%
Used vehicle retail 1,535 1,570 (35) (2)
%
Finance and insurance, net 1,625 1,526 99 6
%
Front end yield (1) 3,127 3,098 29 1
%
Gross margin
---
New vehicle:
Luxury 6.3
% 6.5
% (20) bps
Import 2.4
% 2.9
% (50) bps
Domestic 4.0
% 4.4
% (40) bps
Total new vehicle 4.0
% 4.4
% (40) bps
Used vehicle retail 7.0
% 7.3
% (30) bps
Parts and service:
Parts and service, excluding reconditioning and preparation 47.9 47.8
% % 10 bps
Parts and service, including reconditioning and preparation 62.2 63.0
% % (80) bps
Total gross profit margin 16.4 16.1
% % 30 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)
September 30, December 31, Increase % Change
2019 2018
(Decrease)
---
SELECTED BALANCE SHEET DATA
Cash and cash equivalents $
1.8 $
8.3 $
(6.5) (78)
%
New vehicle inventory 810.3 867.2 (56.9) (7)
%
Used vehicle inventory 176.3 158.9 17.4 11
%
Parts inventory 43.5 41.5 2.0 5
%
Total current assets 1,448.0 1,553.0 (105.0) (7)
%
Floor plan notes payable 861.0 966.1 (105.1) (11)
%
Total current liabilities 1,235.1 1,303.3 (68.2) (5)
%
CAPITALIZATION:
Long-term debt (including current portion) $
905.9 $
905.3 $
0.6
%
Shareholders' equity 600.0 473.2 126.8 27
%
Total $
1,505.9 $
1,378.5 $
127.4 9
%
September 30, 2019 December 31, 2018
---
DAYS SUPPLY
New vehicle inventory 76 67
Used vehicle inventory 36 34
_____________________________
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 Nine Months
Ended September 30,
2019 2018
---
Luxury:
Mercedes-Benz 7 6
% %
Lexus 6 6
% %
BMW 6 5
% %
Acura 4 4
% %
Infiniti 3 3
% %
Other luxury 7 8
% %
---
Total luxury 33 32
% %
Imports:
Honda 19 20
% %
Nissan 9 11
% %
Toyota 13 12
% %
Other imports 5 5
% %
---
Total imports 46 48
% %
Domestic:
Ford 9 10
% %
Chevrolet 6 5
% %
Dodge 3 3
% %
Other domestics 3 2
% %
---
Total domestic 21 20
% %
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 net income," " Adjusted operating margins," and "Adjusted diluted earnings per share ("EPS")." 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-GAAP measures to evaluate results in a specific period, management believes that such measures may provide more complete and consistent comparisons of operational performance on a period-over-period historical basis and a better indication of expected future trends. Management discloses these non-GAAP measures, and the related reconciliations, because it believes investors use these metrics in evaluating longer-term period-over-period performance, and to allow investors to better understand and evaluate the information used by management to assess operating performance.
The following tables provide reconciliations for our non-GAAP metrics:
For the Twelve Months Ended
September 30, 2019 June 30, 2019
(Dollars in millions)
Adjusted leverage ratio:
---
Long-term debt (including current portion) $
905.9 $
909.6
Calculation of earnings before interest, taxes, depreciation and amortization
("EBITDA"):
Net Income $
181.2 $
180.5
Add:
Depreciation and amortization 35.2 34.7
Income tax expense 59.8 59.8
Swap and other interest expense 54.8 54.4
Earnings before interest, taxes, depreciation and amortization $
331.0 $
329.4
("EBITDA")
Non-core items - expense (income):
Gain on divestiture $
(11.7) $
(11.7)
Gain on sale of real estate (0.3) $
(0.3)
Franchise rights impairment 3.7 3.7
Fixed assets write-off 2.4 2.4
Total non-core items (5.9) (5.9)
Adjusted EBITDA $
325.1 $
323.5
Adjusted leverage ratio 2.8 2.8
For the Three Months
Ended September 30,
2019 2018
(In millions, except per
share data)
Adjusted net income:
---
Net income $
45.0 $
44.3
Non-core items - (income) expense:
2017 Tax Act Adjustment 0.6
Total non-core items 0.6
Adjusted net income $
45.0 $
44.9
Adjusted diluted earnings per share (EPS):
---
Diluted EPS $
2.33 $
2.18
Total non-core items 0.03
Adjusted diluted EPS $
2.33 $
2.21
Weighted average common shares outstanding - diluted 19.3 20.3
For the Nine Months
Ended September 30,
2019 2018
(In millions, except per
share data)
Adjusted income from operations:
---
Income from operations $
245.9 $
233.6
Gain on sale of real estate (0.3)
Fixed assets write-off 2.4
Legal settlements (0.7)
Adjusted income from operations $
248.0 $
232.9
Adjusted net income:
---
Net income $
140.8 $
127.6
Non-core items - (income) expense:
Gain on divestiture (11.7)
Gain on sale of real estate (0.3)
Fixed assets write-off 2.4
2017 Tax Act Adjustment 0.6
Legal settlements (0.7)
Income tax on non-core items above 2.4 0.2
Total non-core items (7.2) 0.1
Adjusted net income $
133.6 $
127.7
Adjusted diluted earnings per share (EPS):
---
Diluted EPS $
7.30 $
6.22
Total non-core items (0.38) 0.01
Adjusted diluted EPS $
6.92 $
6.23
Weighted average common shares outstanding - diluted 19.3 20.5
View original content:http://www.prnewswire.com/news-releases/asbury-automotive-group-announces-2019-third-quarter-financial-results-300942511.html
SOURCE Asbury Automotive Group, Inc.
