Asbury Automotive Group Reports Record Third Quarter Financial Results
Income from Continuing Operations Increases 7%; Up 14% Adjusted for Non-Operating Items
SG&A as a Percent of Gross Profit Improves 130 Basis Points
NEW YORK, Oct. 26 -- Asbury Automotive Group, Inc. , one of the largest automotive retail and service companies in the U.S., today reported financial results for the third quarter and nine months ended September 30, 2006.
Income from continuing operations for the third quarter increased 7% to $18.2 million, or $0.54 per diluted share, from $17.1 million, or $0.52 per diluted share, in last year's third quarter. Results for this year's third quarter include non-operating items related to a secondary offering and a bond buy back program, which reduced earnings by $0.03 per diluted share. This year's third quarter also includes a stock-based compensation charge of approximately $0.02 per diluted share. Last year's third quarter included a restructuring charge of $0.01 per diluted share. Excluding these items, third quarter income from continuing operations rose 14% to $19.9 million, or $0.59 per diluted share. Net income for the 2006 quarter was $17.2 million, or $0.51 per diluted share, compared to $15.0 million, or $0.45 per diluted share, in last year's quarter.
For the first nine months of 2006, income from continuing operations was $51.2 million, or $1.51 per diluted share, up 17% from $43.9 million, or $1.34 per diluted share, in the corresponding period last year. Results for the 2006 period include certain non-operating items that totaled $2.1 million, or $0.06 per diluted share. Results for the first nine months of 2005 included after-tax costs of approximately $2.6 million, or $0.08 per diluted share, related to the Company's regional restructuring. Excluding these items from the 2006 and 2005 results, income from continuing operations for the first nine months of 2006 was up 14% to $53.3 million, or $1.57 per diluted share. For the first nine months of 2006, net income was $48.7 million, or $1.44 per diluted share, compared to $40.6 million, or $1.24 per diluted share, in the prior year period.
Additional financial highlights for the third quarter of 2006, as compared to last year's third quarter, included:
* Total revenue for the quarter was approximately $1.5 billion, a 4%
increase. Total gross profit was $229.8 million, up 6%.
* Same-store retail revenue and gross profit (excluding fleet and
wholesale businesses) rose 3% and 5%, respectively.
* New vehicle retail revenue increased 1% (flat same-store), and unit
sales declined 3% (down 4% same-store). New vehicle retail gross profit
rose 4% (3% same-store).
* Used vehicle retail revenue (total and same-store) increased 12%, and
unit sales (total and same-store) were up 5%. Used vehicle retail gross
profit (total and same-store) increased 11%.
* Parts, service and collision repair (fixed operations) revenue increased
4% (3% same-store), and gross profit increased 5% (total and same-
store).
* Net finance and insurance (F&I) revenue was up 3% (2% same-store), and
dealership-generated F&I revenue rose 6% (5% same-store). Dealership-
generated F&I per vehicle retailed (PVR) increased 6% to $905 (total and
same-store).
* Selling, general and administrative (SG&A) expenses as a percentage of
gross profit were 76.2% for the quarter, a 130 basis point improvement
compared with 77.5% a year ago. On an adjusted basis, SG&A expenses
were 75.4% of gross profit for the quarter, a 180 basis point
improvement, excluding non-operating items and a stock based
compensation charge, compared to 77.2% a year ago.
President and CEO Kenneth B. Gilman said, "Asbury's earnings for the third quarter, adjusted for non-operating items, were the highest in the Company's history. We are also pleased that these earnings are at the high-end of our recently released preliminary third quarter results. Our strong earnings are all the more impressive when you consider the difficult year-to-year comparisons for new car sales -- due to employee pricing promotions a year ago -- and the strong headwind we've encountered due to increased interest rates. Our excellent performance reflects well on Asbury's favorable brand mix, the continued steady growth of our higher-margin used vehicle and service businesses, and our ongoing cost-reduction efforts."
Mr. Gilman continued, "Our strong operational performance, specifically in used vehicles and fixed operations, over the last two years is the direct result of strategic programs we have implemented to accelerate our growth. In addition, the regionalization of our field operations put us in an ideal position to capitalize on our operating initiatives. Simply said, we believe we have one of the best operating models in the industry -- where local management is responsible for customer facing activities but common systems, processes and procedures will be applied for our infrastructure and back office."
J. Gordon Smith, Senior Vice President and CFO, said, "The third quarter was Asbury's eighth in a row of adjusted SG&A expense leverage improvement. That ratio improved another 180 basis points in the third quarter versus the prior year quarter, and we still see additional opportunity to continue to leverage our expense structure in 2007 and beyond. Other highlights of the quarter included the Board's decisions to institute a quarterly dividend of $0.20 per common share which represents a payout of 40% of net income which is a three-plus percent yield, the highest in the industry. We also initiated a $40 million bond buy back program of which $15 million has been repurchased to date."
Commenting on earnings for 2006, the Company noted that it remains comfortable with its recently increased guidance range of $1.85 to $1.90 for diluted earnings per share from continuing operations, which includes an expected $0.10 per share due to the impact of expensing of stock-based compensation.
Asbury will host a conference call to discuss its third quarter results this morning at 10:00 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 800-289-0730 (domestic), or 913-981-5509 (international); no access code is necessary. Callers should dial in approximately 5 to 10 minutes before the call begins.
About Asbury Automotive Group
Asbury Automotive Group, Inc., headquartered in New York City, is one of the largest automobile retailers in the U.S. Built through a combination of organic growth and a series of strategic acquisitions, the Company currently operates 87 retail auto stores, encompassing 120 franchises for the sale and servicing of 33 different brands of American, European and Asian automobiles. The Company offers customers an extensive range of automotive products and services, including new and used vehicle sales and related financing and insurance, vehicle maintenance and repair services, replacement parts and service contracts.
Forward-Looking Statements
This press release contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. The forward- looking statements include statements relating to goals, plans, projections and guidance regarding the Company's financial position, results of operations, market position, potential future acquisitions and business strategy. These statements are based on management's current expectations and involve significant risks and uncertainties that may cause results to differ materially from those set forth in the statements. These risks and uncertainties include, among other things, market factors, the Company's relationships with vehicle manufacturers and other suppliers, risks associated with the Company's indebtedness, risks related to potential future acquisitions, risks related to competition in the automotive retail and service industries, general economic conditions both nationally and locally and governmental regulations and legislation. There can be no guarantees that the Company's plans for future operations will be successfully implemented or that they will prove to be commercially successful or that the Company will be able to continue paying dividends in the future at the current rate or at all. These and other risk factors are discussed in the Company's annual report on Form 10-K and in its other filings with the Securities and Exchange Commission. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
Investors May Contact:
Stacey Yonkus
Director, Investor Relations
(212) 885-2512
investor@asburyauto.com
Reporters May Contact:
Kevin Brown
RF|Binder Partners
(212) 994-7537
Kevin.Brown@RFBinder.com
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,
2006 2005 2006 2005
REVENUES:
New vehicle $913,194 $891,491 $2,652,347 $2,535,068
Used vehicle 394,402 360,029 1,137,069 1,028,901
Parts, service and
collision repair 171,652 165,126 513,576 474,798
Finance and
insurance, net 41,198 40,133 120,042 114,687
Total revenues 1,520,446 1,456,779 4,423,034 4,153,454
COST OF SALES:
New vehicle 848,979 830,005 2,466,609 2,360,850
Used vehicle 357,864 327,670 1,032,966 937,903
Parts, service and
collision repair 83,843 81,780 253,587 233,421
Total cost of
sales 1,290,686 1,239,455 3,753,162 3,532,174
GROSS PROFIT 229,760 217,324 669,872 621,280
OPERATING EXPENSES:
Selling, general
and administrative 174,996 168,395 512,360 486,947
Depreciation and
amortization 5,076 4,930 15,164 14,390
Income from
operations 49,688 43,999 142,348 119,943
OTHER INCOME (EXPENSE):
Floor plan interest
expense (10,311) (6,533) (30,712) (20,521)
Other interest
expense (11,225) (10,314) (33,268) (30,183)
Interest income 1,523 163 3,271 598
Loss on
extinguishment of
long-term debt, net (914) - (914) -
Other income, net 400 14 1,225 455
Total other
expense, net (20,527) (16,670) (60,398) (49,651)
Income before
income taxes 29,161 27,329 81,950 70,292
INCOME TAX EXPENSE 10,935 10,248 30,731 26,359
INCOME FROM CONTINUING
OPERATIONS 18,226 17,081 51,219 43,933
DISCONTINUED
OPERATIONS,
net of tax (1,047) (2,128) (2,483) (3,354)
NET INCOME $17,179 $14,953 $48,736 $40,579
BASIC EARNINGS PER
COMMON SHARE:
Continuing
operations $0.55 $0.52 $1.55 $1.35
Discontinued
operations (0.03) (0.06) (0.08) (0.11)
Net income $0.52 $0.46 $1.47 $1.24
DILUTED EARNINGS
PER COMMON SHARE:
Continuing operations $0.54 $0.52 $1.51 $1.34
Discontinued
operations (0.03) (0.07) (0.07) (0.10)
Net income $0.51 $0.45 $1.44 $1.24
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING:
Basic 33,258 32,737 33,087 32,644
Diluted 33,841 33,032 33,853 32,847
Asbury Automotive Group, Inc.
Selected Data
(Dollars in thousands, except per vehicle data)
(Unaudited)
As Reported for the
Three Months Ended September 30,
2006 2005
RETAIL VEHICLES SOLD:
New retail units 28,294 62.2 % 29,096 63.9 %
Used retail units 17,205 37.8 % 16,428 36.1 %
Total retail units 45,499 100.0 % 45,524 100.0 %
REVENUE:
New retail $874,184 57.5 % $861,640 59.2 %
Used retail 304,186 20.0 % 272,505 18.7 %
Parts, service and
collision repair 171,652 11.3 % 165,126 11.3 %
Finance and insurance, net 41,198 2.7 % 40,133 2.8 %
Total retail revenue 1,391,220 1,339,404
Fleet 39,010 2.6 % 29,851 2.0 %
Wholesale 90,216 5.9 % 87,524 6.0 %
Total revenue $1,520,446 100.0 % $1,456,779 100.0 %
GROSS PROFIT:
New retail $63,207 27.5 % $60,776 28.0 %
Used retail 36,728 16.0 % 33,204 15.3 %
Parts, service and
collision repair 87,809 38.2 % 83,346 38.3 %
Finance and insurance, net 41,198 17.9 % 40,133 18.5 %
Total retail gross
profit 228,942 217,459
Fleet 1,008 0.5 % 710 0.3 %
Wholesale (190) (0.1)% (845) (0.4)%
Total gross profit $229,760 100.0 % $217,324 100.0 %
Adjusted SG&A expenses $173,188 $167,804
Adjusted SG&A expenses as a
percentage of gross profit 75.4 % 77.2 %
REVENUE PER VEHICLE RETAILED:
New retail $30,896 $29,614
Used retail 17,680 16,588
GROSS PROFIT PER VEHICLE
RETAILED:
New retail $2,234 $2,089
Used retail 2,135 2,021
Finance and insurance, net 905 882
Dealership generated finance
and insurance, net 905 856
GROSS PROFIT MARGIN:
New retail 7.2 % 7.1 %
Used retail 12.1 % 12.2 %
Parts, service and
collision repair 51.2 % 50.5 %
Same Store for the
Three Months Ended September 30,
2006 2005
RETAIL VEHICLES SOLD:
New retail units 28,007 62.0 % 29,096 63.9 %
Used retail units 17,200 38.0 % 16,428 36.1 %
Total retail units 45,207 100.0 % 45,524 100.0 %
REVENUE:
New retail $865,645 57.3 % $861,640 59.2 %
Used retail 304,131 20.1 % 272,505 18.7 %
Parts, service and
collision repair 170,773 11.3 % 165,126 11.3 %
Finance and insurance, net 40,921 2.7 % 40,133 2.8 %
Total retail revenue 1,381,470 1,339,404
Fleet 38,893 2.6 % 29,851 2.0 %
Wholesale 90,188 6.0 % 87,524 6.0 %
Total revenue $1,510,551 100.0 % $1,456,779 100.0 %
GROSS PROFIT:
New retail $62,717 27.5 % $60,776 28.0 %
Used retail 36,719 16.1 % 33,204 15.3 %
Parts, service and
collision repair 87,344 38.2 % 83,346 38.3 %
Finance and insurance, net 40,921 17.9 % 40,133 18.5 %
Total retail gross
profit 227,701 217,459
Fleet 1,003 0.4 % 710 0.3 %
Wholesale (196) (0.1)% (845) (0.4)%
Total gross profit $228,508 100.0 % $217,324 100.0 %
Adjusted SG&A expenses $172,567 $167,804
Adjusted SG&A expenses as a
percentage of gross profit 75.5 % 77.2 %
REVENUE PER VEHICLE RETAILED:
New retail $30,908 $29,614
Used retail 17,682 16,588
GROSS PROFIT PER VEHICLE
RETAILED:
New retail $2,239 $2,089
Used retail 2,135 2,021
Finance and insurance, net 905 882
Dealership generated finance
and insurance, net 905 856
GROSS PROFIT MARGIN:
New retail 7.2 % 7.1 %
Used retail 12.2 % 12.2 %
Parts, service and
collision repair 51.1 % 50.5 %
Asbury Automotive Group, Inc.
Selected Data
(Dollars in thousands, except per vehicle data)
(Unaudited)
As Reported for the
Nine Months Ended September 30,
2006 2005
RETAIL VEHICLES SOLD:
New retail units 81,181 62.3 % 80,030 63.3 %
Used retail units 49,109 37.7 % 46,354 36.7 %
Total retail units 130,290 100.0 % 126,384 100.0 %
REVENUE:
New retail $2,532,233 57.3 % $2,425,156 58.4 %
Used retail 869,600 19.7 % 776,330 18.7 %
Parts, service and collision
repair 513,576 11.6 % 474,798 11.4 %
Finance and insurance, net 120,042 2.7 % 114,687 2.8 %
Total retail revenue 4,035,451 3,790,971
Fleet 120,114 2.7 % 109,912 2.6 %
Wholesale 267,469 6.0 % 252,571 6.1 %
Total revenue $4,423,034 100.0 % $4,153,454 100.0 %
GROSS PROFIT:
New retail $182,648 27.3 % $172,120 27.7 %
Used retail 105,143 15.7 % 90,633 14.6 %
Parts, service and collision
repair 259,989 38.8 % 241,377 38.9 %
Finance and insurance, net 120,042 17.9 % 114,687 18.4 %
Total retail gross profit 667,822 618,817
Fleet 3,090 0.5 % 2,098 0.3 %
Wholesale (1,040) (0.2)% 365 0.1 %
Total gross profit $669,872 100.0 % $621,280 100.0 %
Adjusted gross profit $666,472 $621,280
Adjusted SG&A expenses $506,598 $482,790
Adjusted SG&A expenses as a
percentage of adjusted gross
profit 76.0 % 77.7 %
REVENUE PER VEHICLE RETAILED:
New retail $31,192 $30,303
Used retail 17,708 16,748
GROSS PROFIT PER VEHICLE RETAILED:
New retail $2,250 $2,151
Used retail 2,141 1,955
Finance and insurance, net 921 907
Dealership generated finance and
insurance, net 882 878
GROSS PROFIT MARGIN:
New retail 7.2 % 7.1 %
Used retail 12.1 % 11.7 %
Parts, service and collision
repair 50.6 % 50.8 %
Same Store for the
Nine Months Ended September 30,
2006 2005
RETAIL VEHICLES SOLD:
New retail units 79,918 62.1 % 80,030 63.3 %
Used retail units 48,875 37.9 % 46,354 36.7 %
Total retail units 128,793 100.0 % 126,384 100.0 %
REVENUE:
New retail $2,496,618 57.1 % $2,425,156 58.4 %
Used retail 866,022 19.8 % 776,330 18.7 %
Parts, service and collision
repair 509,339 11.6 % 474,798 11.4 %
Finance and insurance, net 118,706 2.7 % 114,687 2.8 %
Total retail revenue 3,990,685 3,790,971
Fleet 119,178 2.7 % 109,912 2.6 %
Wholesale 266,561 6.1 % 252,571 6.1 %
Total revenue $4,376,424 100.0 % $4,153,454 100.0 %
GROSS PROFIT:
New retail $180,321 27.2 % $172,120 27.7 %
Used retail 104,641 15.8 % 90,633 14.6 %
Parts, service and collision
repair 257,800 38.9 % 241,377 38.9 %
Finance and insurance, net 118,706 17.9 % 114,687 18.4 %
Total retail gross profit 661,468 618,817
Fleet 3,072 0.4 % 2,098 0.3 %
Wholesale (1,079) (0.2)% 365 0.1 %
Total gross profit $663,461 100.0 % $621,280 100.0 %
Adjusted gross profit $660,061 $621,280
Adjusted SG&A expenses $503,142 $482,790
Adjusted SG&A expenses as a
percentage of adjusted gross
profit 76.2 % 77.7 %
REVENUE PER VEHICLE RETAILED:
New retail $31,240 $30,303
Used retail 17,719 16,748
GROSS PROFIT PER VEHICLE RETAILED:
New retail $2,256 $2,151
Used retail 2,141 1,955
Finance and insurance, net 922 907
Dealership generated finance and
insurance, net 882 878
GROSS PROFIT MARGIN:
New retail 7.2 % 7.1 %
Used retail 12.1 % 11.7 %
Parts, service and collision
repair 50.6 % 50.8 %
Asbury Automotive Group, Inc.
Selected Data
(In thousands)
(Unaudited)
As of As of
September 30, December 31,
2006 2005
BALANCE SHEET HIGHLIGHTS:
Cash and cash equivalents $133,475 $57,194
Inventories 715,458 709,791
Total current assets 1,188,168 1,185,180
Floor plan notes payable 613,374 614,382
Total current liabilities 798,003 838,226
CAPITALIZATION:
Long-term debt (including current
portion) $482,546 $496,949
Stockholders' equity 602,316 547,766
Total $1,084,862 $1,044,715
ASBURY AUTOMOTIVE GROUP, INC.
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
(In thousands, except vehicle and per vehicle data)
(Unaudited)
The Company evaluates F&I gross profit performance on a per vehicle retailed ("PVR") basis by dividing total F&I gross profit by the number of retail vehicles sold. During 2003, the Company renegotiated a contract with a third party finance and insurance product provider, which resulted in the recognition of income in 2006 and 2005 that was not attributable to retail vehicles sold during 2006 and 2005 (referred to as "corporate generated F&I gross profit"). During the second quarter of 2006, the Company decided to sell its remaining interest in the pool of extended service contracts which had been the source of its corporate generated F&I gross profit, which resulted in the recognition of a $3.4 million gain on the sale ("corporate generated F&I gain"). The Company believes that dealership generated F&I PVR, which excludes the additional amounts derived from contracts negotiated by the corporate office, provides a more accurate measure of the Company's finance and insurance operating performance. The following table reconciles F&I gross profit to dealership generated F&I gross profit, and provides the necessary components to calculate dealership generated F&I gross profit PVR.
As Reported for Same Store for
the Three the Three
Months Ended Months Ended
September 30, September 30,
2006 2005 2006 2005
RECONCILIATION OF FINANCE AND
INSURANCE GROSS PROFIT TO
DEALERSHIP GENERATED FINANCE AND
INSURANCE GROSS PROFIT:
F&I gross profit $41,198 $40,133 $40,921 $40,133
Less: corporate generated F&I
gross profit - (1,184) - (1,184)
Dealership generated F&I gross
profit $41,198 $38,949 $40,921 $38,949
RETAIL VEHICLES SOLD:
New retail units 28,294 29,096 28,007 29,096
Used retail units 17,205 16,428 17,200 16,428
Total retail units 45,499 45,524 45,207 45,524
F&I gross profit PVR $905 $882 $905 $882
Dealership generated F&I gross
profit PVR $905 $856 $905 $856
As Reported for Same Store for
the Nine the Nine
Months Ended Months Ended
September 30, September 30,
2006 2005 2006 2005
RECONCILIATION OF FINANCE AND
INSURANCE GROSS PROFIT TO
DEALERSHIP GENERATED FINANCE AND
INSURANCE GROSS PROFIT:
F&I gross profit $120,042 $114,687 $118,706 $114,687
Less: corporate generated F&I
gross profit (1,685) (3,754) (1,685) (3,754)
Less: corporate generated F&I gain (3,400) - (3,400) -
Dealership generated F&I gross
profit $114,957 $110,933 $113,621 $110,933
RETAIL VEHICLES SOLD:
New retail units 81,181 80,030 79,918 80,030
Used retail units 49,109 46,354 48,875 46,354
Total retail units 130,290 126,384 128,793 126,384
F&I gross profit PVR $921 $907 $922 $907
Dealership generated F&I gross
profit PVR $882 $878 $882 $878
The Company's income from continuing operations was impacted by (i) the adoption of Statement of Financial Accounting Standards No. 123R ("SFAS 123R"), (ii) its decision to issue restricted stock units instead of stock options, (iii) the sale of its remaining interest in a pool of extended service contracts, (iv) expenses related to a secondary stock offering, (v) its decision to abandon certain strategic projects and (vi) expenses related to the extinguishment of long-term debt during the nine months ended September 30, 2006; and expenses related to our regional reorganization during the three and nine months ended September 30, 2005. Effective January 1, 2006, The Company has adopted SFAS 123R under the modified prospective transition method and therefore has recorded stock compensation expense under the fair value method for the three and nine months ended September 30, 2006. Prior to January 1, 2006, stock compensation expense was recorded under the intrinsic value method. We believe that a more accurate comparison of income from continuing operations can be made by adjusting for these items.
RECONCILIATION OF ADJUSTED SG&A As Reported for the Increase %
EXPENSES AS A PERCENTAGE OF Three Months Ended (Decrease) Change
GROSS PROFIT September 30,
2006 2005
SG&A expenses $174,996 $168,395 $6,601 4 %
Reorganization expenses - (591)
Secondary stock offering
expenses (846) -
Stock compensation expense (962) -
Adjusted SG&A expenses $173,188 $167,804 $5,384 3 %
Gross profit $229,760 $217,324 $12,436 6 %
Adjusted SG&A expenses as a
percentage of gross profit 75.4 % 77.2 %
RECONCILIATION OF ADJUSTED SG&A Same Store Reported for Increase %
EXPENSES AS A PERCENTAGE OF the Three Months Ended (Decrease) Change
GROSS PROFIT September 30,
2006 2005
SG&A expenses $174,375 $168,395 $5,980 4 %
Reorganization expenses - (591)
Secondary stock offering
expenses (846) -
Stock compensation expense (962) -
Adjusted SG&A expenses $172,567 $167,804 $4,763 3 %
Gross profit $228,508 $217,324 $11,184 5 %
Adjusted SG&A expenses as a
percentage of gross profit 75.5 % 77.2 %
RECONCILIATION OF ADJUSTED SG&A As Reported for the Increase %
EXPENSES AS A PERCENTAGE OF Nine Months Ended (Decrease) Change
ADJUSTED GROSS PROFIT September 30,
2006 2005
SG&A expenses $512,360 $486,947 $25,413 5 %
Reorganization expenses - (4,157)
Abandoned strategic project
expenses (1,658) -
Secondary stock offering
expenses (846) -
Stock compensation expense (3,258) -
Adjusted SG&A expenses $506,598 $482,790 $23,808 5 %
Gross profit $669,872 $621,280 $48,592 8 %
Corporate generated F&I gain (3,400) -
Adjusted gross profit $666,472 $621,280 $45,192 7 %
Adjusted SG&A expenses as a
percentage of adjusted gross
profit 76.0 % 77.7 %
RECONCILIATION OF ADJUSTED SG&A Same Store for the Increase %
EXPENSES AS A PERCENTAGE OF Nine Months Ended (Decrease) Change
ADJUSTED GROSS PROFIT September 30,
2006 2005
SG&A expenses $508,904 $486,947 $21,957 5 %
Reorganization expenses - (4,157)
Abandoned strategic project
expenses (1,658) -
Secondary stock offering
expenses (846) -
Stock compensation expense (3,258) -
Adjusted SG&A expenses $503,142 $482,790 $20,352 4 %
Gross profit $663,461 $621,280 $42,181 7 %
Corporate generated F&I gain (3,400) -
Adjusted gross profit $660,061 $621,280 $38,781 6 %
Adjusted SG&A expenses as a
percentage of adjusted gross
profit 76.2 % 77.7 %
RECONCILIATION OF ADJUSTED INCOME As Reported for the Increase %
FROM CONTINUING OPERATIONS Three Months Ended (Decrease) Change
September 30,
2006 2005
Net income $17,179 $14,953 $2,226 15 %
Discontinued operations, net of
tax 1,047 2,128
Income from continuing operations 18,226 17,081 1,145 7 %
Reorganization expenses, net of
tax - 369
Loss on extinguishment of
long-term debt, net of tax 571 -
Secondary stock offering
expenses, net of tax 529 -
Stock compensation expense,
net of tax 601 -
Adjusted income from continuing
operations $19,927 $17,450 $2,477 14 %
Net income $0.51 $0.45 $0.06 13 %
Discontinued operations, net of
tax 0.03 0.07
Income from continuing operations 0.54 0.52 0.02 4 %
Reorganization expenses, net of
tax - 0.01
Loss on extinguishment of
long-term debt, net of tax 0.02 -
Secondary stock offering expenses,
net of tax 0.01 -
Stock compensation expense, net of
tax 0.02 -
Adjusted income from continuing
operations $0.59 $0.53 $0.06 11 %
Weighted average common shares
outstanding (diluted): 33,841 33,032
RECONCILIATION OF ADJUSTED INCOME As Reported for the Increase %
FROM CONTINUING OPERATIONS Nine Months Ended (Decrease) Change
September 30,
2006 2005
Net income $48,736 $40,579 $8,157 20 %
Discontinued operations, net of
tax 2,483 3,354
Income from continuing operations 51,219 43,933 7,286 17 %
Reorganization expenses, net of
tax - 2,598
Loss on extinguishment of
long-term debt, net of tax 571 -
Corporate generated F&I gain, net
of tax (2,125) -
Secondary stock offering expenses,
net of tax 529 -
Abandoned strategic project
expenses, net of tax 1,036 -
Stock compensation expense, net of
tax 2,036 -
Adjusted income from continuing
operations $53,266 $46,531 $6,735 14 %
Net income $1.44 $1.24 $0.20 16 %
Discontinued operations, net of
tax 0.07 0.10
Income from continuing operations 1.51 1.34 0.17 13 %
Reorganization expenses, net of
tax - 0.08
Loss on extinguishment of
long-term debt, net of tax 0.02 -
Corporate generated F&I gain, net
of tax (0.06) -
Secondary stock offering expenses,
net of tax 0.01 -
Abandoned strategic project
expenses, net of tax 0.03 -
Stock compensation expense, net of
tax 0.06 -
Adjusted income from continuing
operations $1.57 $1.42 $0.15 11 %
Weighted average common shares
outstanding (diluted): 33,853 32,847