Asbury Automotive Group Reports First Quarter Financial Results

NEW YORK, April 24 -- Asbury Automotive Group, Inc. , one of the largest automotive retail and service companies in the U.S., today reported financial results for the first quarter ended March 31, 2008.

Income from continuing operations for the first quarter was $11.2 million, or $0.35 per diluted share, compared to adjusted income from continuing operations of $15.2 million, or $0.44 per diluted share, in last year's quarter. Last year's results have been adjusted for non-core items, as disclosed in the attached tables, including $0.32 per diluted share in charges related to a debt refinancing and $0.05 per share related to the retirement of the Company's previous CEO. Including these items, income from continuing operations in last year's first quarter was $2.3 million, or $0.07 per diluted share. Net income for the first quarter totaled $10.5 million, or $0.33 per diluted share, compared with $0.4 million, or $0.01 per diluted share, in last year's quarter, including the non-core items discussed above.

President and CEO Charles R. Oglesby said, "Our performance for the quarter reflected a soft environment for vehicle sales, especially in Florida and California, as well as weather conditions during March in several of our markets that disrupted our operations, particularly in parts and service. However, our expense reduction initiatives delivered in excess of plan, partially offsetting our lower gross profit and keeping us on target with our previous guidance range for 2008 diluted earnings per share of $1.80 to $2.00."

J. Gordon Smith, Senior Vice President and CFO, added, "We made further progress during the first quarter in aligning expenses with our reduced gross profit levels. Same-store personnel and advertising costs were down 6% and 15%, respectively, from a year ago. While the near-term outlook for vehicle sales is clearly challenging, we believe that our expense reductions have put Asbury in a good position to weather the storm."

Mr. Oglesby concluded, "Despite the current weakness in the new vehicle market, the longer term demographic trends continue to be favorable for Asbury. Census data shows that the population in 17 of our 22 local markets, representing 83% of our total revenue, grew faster than the national average in 2007. And, during the first quarter of 2008, U.S. vehicle sales continued to migrate towards mid-line import brands, which now make up 60% of Asbury's new vehicle retail sales. We remain committed to our long-term strategy, building on our foundation of strong brands and growing markets through selective acquisitions, and continuing to return capital to our shareholders through our dividend."

Asbury will host a conference call to discuss its first quarter results this afternoon at 2:00 p.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) 632-5023 (domestic), or (913) 312-0656 (international); no access code is necessary. Callers should dial in approximately 5-10 minutes before the call begins.

About Asbury Automotive Group

Asbury Automotive Group, Inc. ("Asbury"), 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, Asbury currently operates 90 retail auto stores, encompassing 122 franchises for the sale and servicing of 36 different brands of American, European and Asian automobiles. 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.

To learn more go to ASBURY