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