Asbury Automotive Group Reports Fourth Quarter and Year-End Financial Results
- Fourth quarter diluted EPS from continuing operations of $0.15 - Fourth quarter results reduced $0.03 per share by tax items - Year-over-year growth in same-store new light vehicle retail revenues (4%) and gross profit (17%) for the first time since 2007 - Year-over-year growth in same-store used light vehicle retail revenues (12%) and gross profit (15%) for the first time since 2007
DULUTH, Ga., Feb. 25 -- Asbury Automotive Group, Inc. , one of the largest automotive retail and service companies in the U.S., today reported income from continuing operations for the fourth quarter 2009 of $5.0 million, or $0.15 per diluted share versus a loss from continuing operations of $352.4 million, or $11.12 per diluted share, in the corresponding period last year. Tax items reduced income from continuing operations by $0.03 per diluted share in the fourth quarter of 2009, increasing Asbury's effective tax rate to 46.2% in the fourth quarter 2009. Non-core items, as disclosed in the attached tables, reduced last year's fourth quarter income from continuing operations by $11.05 per diluted share.
Net income for the fourth quarter of 2009 totaled $0.2 million, or $0.01 per diluted share, compared with a loss of $369.7 million, or $11.66 per diluted share, a year ago. In the fourth quarter 2009, Asbury incurred a $0.14 per diluted share loss in discontinued operations, primarily attributable to asset impairments. In the corresponding period last year the Company incurred a $0.54 per diluted share loss in discontinued operations, due primarily to goodwill and asset impairments.
Fourth quarter 2009 revenues totaled $898.6 million, compared to prior period revenues of $880.1 million. This 2.1% increase in revenues was driven primarily by relative strength in new and used vehicle revenues.
"Asbury is pleased to announce solid financial results for the fourth quarter driven primarily by growth in new and used light vehicle units, revenues, and gross profits coupled with a leaner cost structure," said Charles R. Oglesby, Asbury's President and CEO. "Our ability to generate increased profitability this quarter, compared to the fourth quarter of last year, demonstrates the continuing benefits of our cost-savings initiatives as well as the strength of our portfolio of brands and geographies."
Asbury's heavy truck business continued to be adversely impacted by the unfavorable economic conditions, particularly in the home building and construction markets. For example, Class 8 truck sales in the United States have declined approximately 40% over the last two years. In the fourth quarter, our new heavy truck revenues declined 33% compared to the prior period and, on a pre-tax basis, our heavy truck business lost $1.6 million in the fourth quarter, driven primarily by inventory losses. Our heavy truck business generated a pre-tax loss of $1.8 million in 2009 versus a $3.5 million pre-tax profit in 2008. The Company has included additional disclosure of heavy truck financial performance in the tables included in this press release.
The Company's revenues for the year 2009 totaled $3.7 billion, compared to $4.4 billion in the prior year. For the full year 2009, income from continuing operations was $24.2 million, or $0.74 per diluted share, compared with a loss of $323.4 million, or $10.20 per diluted share, in the corresponding period last year. Non-core items, as disclosed in the attached tables, reduced income from continuing operations by $0.09 per diluted share for the full year 2009, and by $11.12 per diluted share for the full year 2008.
Craig T. Monaghan, Asbury's Senior Vice President and Chief Financial Officer, stated, "The Company's liquidity position remained strong as of December 31st, with total available liquidity of approximately $243 million, including $85 million of cash and credit facility borrowing availability of approximately $158 million. The Company repurchased over $7 million in subordinated debt during the fourth quarter and has no material debt maturities scheduled until 2012. We are pleased that the Board of Directors, at its meeting last week, has reauthorized the Company to repurchase up to $30 million in debt over the next twelve months. Clearly, our financial position has strengthened over the last year."
Mr. Oglesby concluded, "Asbury has dramatically improved its operating performance in 2009 compared to 2008 despite a 21% drop in SAAR over the same period. The Company reduced operating costs by $87 million in 2009 compared to 2008, allowing Asbury to keep its selling, general and administrative expenses as a percentage of gross profit flat despite a 17% decline in revenues. I am thrilled with how quickly this Company responded to the challenges we faced in 2009 and I am excited about the opportunities we will encounter in the future. Thanks to the dedication and commitment of our employees, we believe the Company is well-positioned to generate significantly improved earnings as sales volumes recover."
Asbury will host a conference call to discuss its fourth quarter and year-end 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) 289-0544 (domestic), or (913) 312-0654 (international); pass code - 7609047. Callers should dial in approximately 5 to 10 minutes before the call begins.
About Asbury Automotive Group
Asbury Automotive Group, Inc. ("Asbury"), headquartered in Duluth, Georgia, a suburb of Atlanta, 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 81 retail auto stores, encompassing 108 franchises for the sale and servicing of 38 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.
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 that are not historical in nature, and may include statements relating to goals, plans and projections regarding industry and general economic trends, Asbury's expected financial position, results of operations, market position and business strategy. These statements are based on management's expectations and assumptions and involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include, among other things, Asbury's relationships with, and the financial stability and reputation of, vehicle manufacturers and other suppliers, risks associated with Asbury's indebtedness (including available borrowing capacity and compliance with its financial covenants), Asbury's relationship with, and the financial stability of, its lenders and lessors, risks related to competition in the automotive retail and service industries, general economic and business conditions both nationally and locally, changes in governmental regulations and laws, Asbury's ability to execute its cost-savings initiatives and strategies, Asbury's ability to leverage gains from its dealership portfolio, Asbury's ability to capitalize on opportunities to repurchase its debt securities or purchase properties that it currently leases, and Asbury's estimated future 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 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 (LOSS)
(In millions, except per share data)
(Unaudited)
For the Three For the Twelve
Months Ended Months Ended
December 31, December 31,
------------------ -------------------
2009 2008 2009 2008
-------- -------- -------- --------
REVENUES:
New vehicle $499.8 $498.8 $2,014.0 $2,585.8
Used vehicle 228.1 196.9 923.7 1,033.5
Parts and service 149.0 157.4 622.1 653.0
Finance and insurance, net 21.7 27.0 90.8 130.5
-------- -------- -------- --------
Total revenues 898.6 880.1 3,650.6 4,402.8
COST OF SALES:
New vehicle 465.5 467.7 1,877.6 2,412.0
Used vehicle 211.4 182.6 847.8 946.7
Parts and service 73.9 79.4 312.2 323.5
-------- -------- -------- --------
Total cost of sales 750.8 729.7 3,037.6 3,682.2
-------- -------- -------- --------
GROSS PROFIT 147.8 150.4 613.0 720.6
OPERATING EXPENSES:
Selling, general and
administrative 118.9 128.7 494.7 581.5
Depreciation and amortization 6.0 6.0 23.5 22.3
Impairment expenses - 528.7 - 528.7
Other operating (income)
expense, net (0.4) (0.3) (1.5) 1.3
-------- -------- -------- --------
Income (loss) from
operations 23.3 (512.7) 96.3 (413.2)
OTHER INCOME (EXPENSE):
Floor plan interest expense (4.3) (6.5) (18.0) (28.9)
Other interest expense (9.5) (11.0) (38.2) (40.0)
Convertible debt discount
amortization (0.4) (0.6) (1.8) (3.0)
Interest income 0.1 0.1 0.2 1.5
Gain on extinguishment of
long-term debt 0.1 27.9 0.1 26.2
-------- -------- -------- --------
Total other (expense)
income, net (14.0) 9.9 (57.7) (44.2)
-------- -------- -------- --------
Income (loss) before
income taxes 9.3 (502.8) 38.6 (457.4)
INCOME TAX EXPENSE (BENEFIT) 4.3 (150.4) 14.4 (134.0)
-------- -------- -------- --------
INCOME (LOSS) FROM CONTINUING
OPERATIONS 5.0 (352.4) 24.2 (323.4)
DISCONTINUED OPERATIONS,
net of tax (4.8) (17.3) (10.8) (20.3)
-------- -------- -------- --------
NET INCOME (LOSS) $0.2 $(369.7) $13.4 $(343.7)
======== ======== ======== ========
EARNINGS (LOSS) PER COMMON SHARE:
BASIC -
Continuing operations $0.16 $(11.12) $0.76 $(10.20)
Discontinued operations (0.15) (0.54) (0.34) (0.64)
-------- -------- -------- --------
Net income (loss) $0.01 $(11.66) $0.42 $(10.84)
======== ======== ======== ========
DILUTED -
Continuing operations $0.15 $(11.12) $0.74 $(10.20)
Discontinued operations (0.14) (0.54) (0.33) (0.64)
-------- -------- -------- --------
Net income (loss) $0.01 $(11.66) $0.41 $(10.84)
======== ======== ======== ========
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic 32.1 31.7 32.0 31.7
======== ======== ======== ========
Diluted 33.0 31.7 32.9 31.7
======== ======== ======== ========
New Vehicle --
For the Three
Months Ended
December 31,
------------------ Increase %
2009 2008 (Decrease) Change
-------- -------- ---------- ------
(In millions)
Revenue:
New vehicle revenue -- same store
Luxury $187.2 $174.0 $13.2 8%
Mid-line import 212.2 204.0 8.2 4%
Mid-line domestic 59.4 62.2 (2.8) (5%)
Value 3.7 2.9 0.8 28%
-------- --------
Total new light vehicle
revenue -- same store 462.5 443.1 19.4 4%
Heavy truck 37.3 55.7 (18.4) (33%)
-------- --------
Total new vehicle revenue
-- same store 499.8 498.8 1.0 --%
New vehicle revenue -- acquisitions -- --
-------- --------
Total new vehicle revenue,
as reported $499.8 $498.8 $1.0 --%
======== ========
Gross profit:
New vehicle gross profit
-- same store
Luxury $15.3 $11.7 $3.6 31%
Mid-line import 14.2 12.9 1.3 10%
Mid-line domestic 4.5 4.5 -- --%
Value 0.1 0.1 -- --%
-------- --------
Total new light vehicle
gross profit -- same store 34.1 29.2 4.9 17%
Heavy truck 0.2 1.9 (1.7) (89%)
-------- --------
Total new vehicle gross
profit -- same store 34.3 31.1 3.2 10%
New vehicle gross profit
-- acquisitions -- --
-------- --------
Total new vehicle gross
profit, as reported $34.3 $31.1 $3.2 10%
======== ========
For the Three
Months Ended
December 31,
------------------ Increase %
2009 2008 (Decrease) Change
-------- -------- ---------- ------
New retail units:
New vehicle retail units
- same store
Luxury 3,911 3,697 214 6%
Mid-line import 8,405 8,145 260 3%
Mid-line domestic 1,628 1,942 (314) (16%)
Value 180 135 45 33%
-------- --------
Total new light vehicle
retail units - same store 14,124 13,919 205 1%
Fleet vehicles 340 440 (100) (23%)
-------- --------
Total new light vehicle
units - same store 14,464 14,359 105 1%
Heavy truck 645 782 (137) (18%)
-------- --------
Total new vehicle units
- same store 15,109 15,141 (32) -%
Total new vehicle units
- acquisitions - -
-------- --------
New vehicle units - actual 15,109 15,141 (32) -%
======== ========
Total new light vehicle units -
same store 14,464 14,359 105 1%
Total new light vehicle units -
acquisitions - -
-------- --------
Total new light vehicle units 14,464 14,359 105 1%
======== ========
New Vehicle Metrics -
For the Three
Months Ended
December 31,
----------------- Increase %
2009 2008 (Decrease) Change
-------- -------- --------- ------
Revenue per new light vehicle sold
- same store $31,976 $30,859 $1,117 4%
======= =======
Revenue per new heavy truck sold $57,829 $71,228 ($13,399) (19%)
======= =======
Revenue per new vehicle sold - same
store $33,080 $32,944 $136 -%
======= =======
Gross profit per new light vehicle sold -
same store $2,358 $2,034 $324 16%
======= =======
Gross profit per new heavy truck sold $310 $2,430 ($2,120) (87%)
======= =======
Gross profit per new vehicle sold - same
store $2,270 $2,054 $216 11%
======= =======
New light vehicle gross margin - same
store 7.4% 6.6% 0.8% 12%
======= =======
New heavy truck gross margin 0.5% 3.4% (2.9%) (85%)
======= =======
New vehicle gross margin - same store 6.9% 6.2% 0.7% 11%
======= =======
Used Vehicle -
For the Three
Months Ended
December 31,
----------------- Increase %
2009 2008 (Decrease) Change
-------- -------- --------- ------
(Dollars in millions, except for vehicle
unit data)
Revenue:
Used vehicle retail revenues
- same store
Light vehicles $174.6 $156.3 $18.3 12%
Heavy trucks 3.0 2.3 0.7 30%
-------- --------
Total used vehicle retail
revenues - same store 177.6 158.6 19.0 12%
Used vehicle retail
revenues - acquisitions - -
-------- --------
Total used vehicle retail
revenues 177.6 158.6 19.0 12%
-------- --------
Used vehicle wholesale revenues
- same store
Light vehicles 50.5 35.2 15.3 43%
Heavy trucks - 3.1 (3.1) (100%)
-------- --------
Total used vehicle wholesale
revenues - same store 50.5 38.3 12.2 32%
Used vehicle wholesale
revenues - acquisitions - -
-------- --------
Total used vehicle wholesale
revenues 50.5 38.3 12.2 32%
-------- --------
Used vehicle revenue, as reported $228.1 $196.9 $31.2 16%
======== ========
Gross profit:
Used vehicle retail gross profit
- same store
Light vehicles $18.1 $15.7 $2.4 15%
Heavy trucks (1.1) (0.2) (0.9) NM
-------- --------
Total used vehicle retail
gross profit - same store 17.0 15.5 1.5 10%
Used vehicle retail gross
profit - acquisitions - -
-------- --------
Total used vehicle retail
gross profit 17.0 15.5 1.5 10%
Used vehicle wholesale gross profit
- same store
Light vehicles (0.2) (1.0) 0.8 80%
Heavy trucks (0.1) (0.2) 0.1 50%
-------- --------
Total used vehicle wholesale
gross profit - same store (0.3) (1.2) 0.9 75%
Used vehicle wholesale
gross profit - acquisitions - -
-------- --------
Used vehicle wholesale gross profit (0.3) (1.2) 0.9 75%
-------- --------
Used vehicle gross profit,
as reported $16.7 $14.3 $2.4 17%
======== ========
Used vehicle retail units
- same store
Light vehicles 9,355 8,743 612 7%
Heavy trucks 104 56 48 86%
-------- --------
Used vehicle retail units -
same store 9,459 8,799 660 8%
Used vehicle retail units -
acquisitions - -
-------- --------
Used vehicle retail units -
actual 9,459 8,799 660 8%
======== ========
Used Vehicle Metrics-
For the Three
Months Ended
December 31,
----------------- Increase %
2009 2008 (Decrease) Change
-------- -------- --------- ------
Revenue per used light vehicle
retailed - same store $18,664 $17,877 $787 4%
======== ========
Revenue per used heavy truck retailed $28,846 $41,071 ($12,225) (30%)
======== ========
Revenue per used vehicle retailed -
same store $18,776 $18,025 $751 4%
======== ========
Gross profit per used light vehicle
retailed - same store $1,935 $1,796 $139 8%
======== ========
Gross profit per used heavy truck
retailed ($10,577) ($3,571) ($7,006) NM
======== ========
Gross profit per used vehicle
retailed - same store $1,797 $1,762 $35 2%
======== ========
Used light vehicle retail gross
margin - same store 10.4% 10.0% 0.4% 4%
======== ========
Used heavy truck retail gross margin (36.7%) (8.7%) (28.0%) NM
======== ========
Used vehicle retail gross margin -
same store 9.6% 9.8% (0.2%) (2%)
======== ========
Parts and Service-
For the Three
Months Ended
December 31,
------------------ Increase %
2009 2008 (Decrease) Change
-------- -------- --------- ------
(Dollars in millions)
Revenue:
Parts and service revenues
- same store
Light vehicles $133.6 $141.7 ($8.1) (6%)
Heavy trucks 15.4 15.7 (0.3) (2%)
-------- --------
Total parts and service
revenue - same store 149.0 157.4 (8.4) (5%)
Parts and service revenues
- acquisitions - -
-------- --------
Parts and service revenue,
as reported $149.0 $157.4 ($8.4) (5%)
======== ========
Gross profit:
Parts and service gross
profit - same store
Light vehicles $70.6 $73.0 ($2.4) (3%)
Heavy trucks 4.5 5.0 (0.5) (10%)
-------- --------
Total parts and service
gross profit - same store 75.1 78.0 (2.9) (4%)
-------- --------
Parts and service gross profit
- acquisitions - -
-------- --------
Parts and service gross profit,
as reported $75.1 $78.0 ($2.9) (4%)
-------- --------
Light vehicle parts and service
gross margin - same store 52.8% 51.5% 1.3% 3%
======== ========
Heavy truck parts and service
gross margin 29.2% 31.8% (2.6%) (8%)
======== ========
Parts and service gross
margin - same store 50.4% 49.6% 0.8% 2%
======== ========
Finance and Insurance, net -
For the Three
Months Ended
December 31,
------------------ Increase %
2009 2008 (Decrease) Change
-------- -------- --------- ------
(In millions, except for per vehicle data)
Dealership generated F&I, net
- same store
Light vehicles $22.2 $22.1 $0.1 -%
Heavy trucks - 0.1 (0.1) (100%)
-------- --------
Dealership generated F&I -
same store 22.2 22.2 - -%
Dealership generated F&I -
acquisitions - -
-------- --------
Dealership generated
F&I, net 22.2 22.2 - -%
Corporate generated F&I (0.5) 4.8 (5.3) (110%)
-------- --------
Finance and insurance,
net as reported $21.7 $27.0 ($5.3) (20%)
======== ========
Dealership generated light
vehicle F&I per vehicle sold
- same store(1) $932 $957 ($25) (3%)
======== ========
Dealership generated F&I per
vehicle sold - same store(1) $904 $927 ($23) (2%)
======== ========
Light vehicle F&I per
vehicle sold - same store $911 $1,164 ($253) (22%)
======== ========
Heavy truck F&I per vehicle
sold $- $119 ($119) (100%)
======== ========
F&I per vehicle sold -
same store $883 $1,128 ($245) (22%)
======== ========
(1) Dealership generated F&I per vehicle sold excludes corporate
generated F&I.
For the Three Months Ended
December 31,
--------------------------
2009 2008
-------------- -----------
REVENUE MIX PERCENTAGES:
New light vehicles 51.5% 50.3%
New heavy trucks 4.2% 6.3%
Used retail light vehicles 19.4% 17.7%
Used retail heavy trucks 0.3% 0.3%
Used wholesale light vehicles 5.6% 4.0%
Used wholesale heavy trucks -% 0.4%
Parts and service light vehicles 14.9% 16.1%
Parts and service heavy trucks 1.7% 1.8%
Finance and insurance, net - light vehicles 2.4% 3.1%
Finance and insurance, net - heavy trucks -% -%
-------------- -----------
Total revenue 100.0% 100.0%
============== ===========
GROSS PROFIT MIX PERCENTAGES:
New light vehicles 23.1% 19.4%
New heavy trucks 0.1% 1.3%
Used retail light vehicles 12.2% 10.3%
Used retail heavy trucks (0.7%) (0.1%)
Used wholesale light vehicles (0.1%) (0.7%)
Used wholesale heavy trucks (0.1%) (0.1%)
Parts and service light vehicles 47.8% 48.6%
Parts and service heavy trucks 3.0% 3.3%
Finance and insurance, net - light vehicles 14.7% 17.9%
Finance and insurance, net - heavy trucks -% 0.1%
-------------- -----------
Total gross profit 100.0% 100.0%
============== ===========
SG&A EXPENSES AS A PERCENTAGE OF GROSS PROFIT 80.4% 85.6%
New Vehicle -
For the Twelve
Months Ended
December 31,
------------- Increase %
2009 2008 (Decrease) Change
------ ------ ---------- ------
(In millions)
Revenue:
New vehicle revenue - same store
Luxury $678.0 $892.4 ($214.4) (24%)
Mid-line import 917.5 1,178.8 (261.3) (22%)
Mid-line domestic 252.0 303.6 (51.6) (17%)
Value 19.2 19.9 (0.7) (4%)
-------- --------
Total new light vehicle revenue
- same store 1,866.7 2,394.7 (528.0) (22%)
Heavy truck 141.3 191.1 (49.8) (26%)
-------- --------
Total new vehicle revenue
- same store 2,008.0 2,585.8 (577.8) (22%)
New vehicle revenue - acquisitions 6.0 -
-------- --------
Total vehicle revenue,
as reported $2,014.0 $2,585.8 ($571.8) (22%)
======== ========
Gross profit:
New vehicle gross profit-same store
Luxury $54.6 $65.8 ($11.2) (17%)
Mid-line import 58.8 78.1 (19.3) (25%)
Mid-line domestic 17.3 21.3 (4.0) (19%)
Value 0.9 1.0 (0.1) (10%)
-------- --------
Total new light vehicle gross profit
- same store 131.6 166.2 (34.6) (21%)
Heavy truck 4.5 7.6 (3.1) (41%)
-------- --------
Total new vehicle gross profit - same store 136.1 173.8 (37.7) (22%)
New vehicle gross profit-acquisitions 0.3 -
-------- --------
Total new vehicle gross profit,
as reported $136.4 $173.8 ($37.4) (22%)
======== ========
For the Twelve
Months Ended
December 31,
------------- Increase %
2009 2008 (Decrease) Change
------ ------ ---------- ------
New retail units:
New vehicle retail units - same store
Luxury 14,400 19,015 (4,615) (24%)
Mid-line import 37,586 47,438 (9,852) (21%)
Mid-line domestic 7,388 9,522 (2,134) (22%)
Value 929 997 (68) (7%)
------- -------
Total new light vehicle retail
units - same store 60,303 76,972 (16,669) (22%)
Fleet vehicles 1,785 3,086 (1,301) (42%)
------- -------
Total new light vehicle units
- same store 62,088 80,058 (17,970) (22%)
Heavy truck 2,279 2,885 (606) (21%)
------- -------
Total new vehicle units
- same store 64,367 82,943 (18,576) (22%)
Total new vehicle units
- acquisitions 251 -
------- -------
New vehicle units - actual 64,618 82,943 (18,325) (22%)
======= =======
Total new light vehicle units
- same store 62,088 80,058 (17,970) (22%)
Total new light vehicle units
- acquisitions 251 -
------- -------
Total new light vehicle units 62,339 80,058 (17,719) (22%)
======= =======
New Vehicle Metrics -
For the Twelve
Months Ended
December 31,
----------------- Increase %
2009 2008 (Decrease) Change
-------- -------- --------- ------
Revenue per new light vehicle
sold - same store $30,065 $29,912 $153 1%
======== ========
Revenue per new heavy truck sold $62,001 $66,239 ($4,238) (6%)
======== ========
Revenue per new vehicle sold
- same store $31,196 $31,176 $20 -%
======== ========
Gross profit per new light
vehicle sold - same store $2,120 $2,076 $44 2%
======== ========
Gross profit per new heavy truck sold $1,975 $2,634 ($659) (25%)
======== ========
Gross profit per new vehicle
sold - same store $2,114 $2,095 $19 1%
======== ========
New light vehicle gross margin
- same store 7.0% 6.9% 0.1% 1%
======== ========
New heavy truck gross margin 3.2% 4.0% (0.8%) (20%)
======== ========
New vehicle gross margin - same store 6.8% 6.7% 0.1% 1%
======== ========
Used Vehicle -
For the Twelve
Months Ended
December 31,
------------------ Increase %
2009 2008 (Decrease) Change
-------- -------- --------- ------
(Dollars in millions, except for
vehicle unit data)
Revenue:
Used vehicle retail revenues
- same store
Light vehicles $721.1 $796.0 ($74.9) (9%)
Heavy trucks 13.7 7.2 6.5 90%
-------- --------
Total used vehicle retail
revenues - same store 734.8 803.2 (68.4) (9%)
Used vehicle retail revenues
- acquisitions 2.0 -
-------- --------
Total used vehicle retail
revenues 736.8 803.2 (66.4) (8%)
-------- --------
Used vehicle wholesale revenues
- same store
Light Vehicles 184.8 225.5 (40.7) (18%)
Heavy trucks 1.4 4.8 (3.4) (71%)
-------- --------
Total used vehicle wholesale
revenues - same store 186.2 230.3 (44.1) (19%)
Used vehicle wholesale revenues
- acquisitions 0.7 -
-------- --------
Total used vehicle wholesale
revenues 186.9 230.3 (43.4) (19%)
Used vehicle revenue, as reported $923.7 $1,033.5 ($109.8) (11%)
======== ========
Gross profit:
Used vehicle retail gross profit
- same store
Light vehicles $80.1 $90.3 ($10.2) (11%)
Heavy trucks (2.6) (0.1) (2.5) NM
-------- --------
Total used vehicle retail
gross profit - same store 77.5 90.2 (12.7) (14%)
Used vehicle retail gross profit
- acquisitions 0.3 -
Total used vehicle retail
gross profit 77.8 90.2 (12.4) (14%)
-------- --------
Used vehicle wholesale gross profit
- same store
Light vehicles (0.6) (3.0) 2.4 (80%)
Heavy trucks (1.3) (0.4) (0.9) 225%
-------- --------
Total used vehicle wholesale
gross profit - same store (1.9) (3.4) 1.5 (44%)
Used vehicle wholesale gross profit
- acquisitions - -
-------- --------
Used vehicle wholesale gross
profit (1.9) (3.4) 1.5 (44%)
Used vehicle gross profit,
as reported $75.9 $86.8 ($10.9) (13%)
-------- --------
Used vehicle retail units
- same store
Light vehicles 39,423 44,570 (5,147) (12%)
Heavy trucks 416 188 228 121%
-------- --------
Used vehicle retail units
- same store 39,839 44,758 (4,919) (11%)
Used vehicle retail units
- acquisitions 133 -
-------- --------
Used vehicle retail units
- actual 39,972 44,758 (4,786) (11%)
======== ========
Used Vehicle Metrics -
For the Twelve
Months Ended
December 31,
----------------- Increase %
2009 2008 (Decrease) Change
-------- -------- --------- ------
Revenue per used light vehicle
retailed - same store $18,291 $17,860 $431 2%
======== ========
Revenue per used heavy truck
retailed $32,933 $38,298 ($5,365) (14%)
======== ========
Revenue per used vehicle
retailed - same store $18,444 $17,945 $499 3%
======== ========
Gross profit per used light
vehicle retailed - same store $2,032 $2,026 $6 -%
======== ========
Gross profit per used heavy
truck retailed ($6,250) ($532) ($5,718) NM
======== ========
Gross profit per used vehicle
retailed - same store $1,945 $2,015 ($70) (3%)
======== ========
Used light vehicle retail
gross margin - same store 11.1% 11.3% (0.2%) (2%)
======== ========
Used heavy truck retail gross
margin (19.0%) (1.4%) (17.6)% NM
======== ========
Used vehicle retail gross
margin - same store 10.5% 11.2% (0.7%) (6%)
======== ========
Parts and Service -
For the Twelve
Months Ended
December 31,
------------------ Increase %
2009 2008 (Decrease) Change
-------- -------- --------- ------
(Dollars in millions)
Revenue:
Parts and service revenues
- same store
Light vehicles $558.2 $590.8 ($32.6) (6%)
Heavy trucks 61.6 62.2 (0.6) (1%)
-------- --------
Total parts and service
revenue - same store 619.8 653.0 (33.2) (5%)
Parts and service revenues
- acquisitions 2.3 -
-------- --------
Parts and service revenue,
as reported $622.1 $653.0 ($30.9) (5%)
======== ========
Gross profit:
Parts and service gross profit
- same store
Light vehicles $289.8 $309.8 ($20.0) (6%)
Heavy trucks 19.1 19.7 (0.6) (3%)
-------- --------
Total parts and service
gross profit - same store 308.9 329.5 (20.6) (6%)
Parts and service gross profit -
acquisitions 1.0 -
-------- --------
Parts and service gross profit,
as reported $309.9 $329.5 ($19.6) (6%)
======== ========
Light vehicle parts and service
gross margin- same store 51.9% 52.4% (0.5%) (1%)
======== ========
Heavy truck parts and service
gross margin 31.0% 31.7% (0.7%) (2%)
======== ========
Parts and service gross margin
- same store 49.8% 50.5% (0.7%) (1%)
======== ========
Finance and Insurance, net -
For the Twelve
Months Ended
December 31,
---------------- Increase %
2009 2008 (Decrease) Change
-------- ------- --------- ------
(In millions, except for per vehicle
data)
Dealership generated F&I, net
- same store
Light vehicles $90.8 $123.6 ($32.8) (27%)
Heavy trucks 0.2 0.3 (0.1) (33%)
-------- -------
Dealership generated F&I
- same store 91.0 123.9 (32.9) (27%)
Dealership generated F&I
- acquisitions 0.3 -
-------- -------
Dealership generated F&I, net 91.3 123.9 (32.6) (26%)
Corporate generated F&I (0.5) 6.6 (7.1) (108%)
-------- -------
Finance and insurance, net as
reported $90.8 $130.5 ($39.7) (30%)
======== =======
Dealership generated light
vehicle F&I per vehicle sold -
same store(1) $894 $992 ($98) (10%)
-------- -------
Dealership generated F&I per
vehicle sold - same store(1) $873 $970 ($97) (10%)
-------- -------
Light vehicle F&I per vehicle
sold - same store $890 $1,045 ($155) (15%)
-------- -------
Heavy truck F&I per vehicle sold $74 $98 ($24) (24%)
-------- -------
F&I per vehicle sold - same store $868 $1,022 ($154) (15%)
-------- -------
(1) Dealership generated F&I per vehicle sold excludes corporate
generated F&I.
For the
Twelve Months
Ended
December 31,
--------------
2009 2008
---- ----
REVENUE MIX PERCENTAGES:
New light vehicles 51.3% 54.4%
New heavy trucks 3.9% 4.3%
Used retail light vehicles 19.8% 18.1%
Used retail heavy trucks 0.4% 0.2%
Used wholesale light vehicles 5.0% 5.1%
Used wholesale heavy trucks 0.1% 0.1%
Parts and service light vehicles 15.3% 13.4%
Parts and service heavy trucks 1.7% 1.4%
Finance and insurance, net - light vehicles 2.5% 3.0%
Finance and insurance, net - heavy trucks -% -%
------ ------
Total revenue 100.0% 100.0%
====== ======
GROSS PROFIT MIX PERCENTAGES:
New light vehicles 21.5% 23.1%
New heavy trucks 0.7% 1.1%
Used retail light vehicles 13.1% 12.5%
Used retail heavy trucks (0.4%) -%
Used wholesale light vehicles (0.1%) (0.4%)
Used wholesale heavy trucks (0.2%) (0.1%)
Parts and service light vehicles 47.5% 43.0%
Parts and service heavy trucks 3.1% 2.7%
Finance and insurance, net - light vehicles 14.8% 18.1%
Finance and insurance, net - heavy trucks -% -%
------ ------
Total gross profit 100.0% 100.0%
====== ======
SG&A EXPENSES AS A PERCENTAGE OF GROSS PROFIT 80.7% 80.7%
ASBURY AUTOMOTIVE GROUP, INC.
Selected Balance Sheet Data
(In millions)
(Unaudited)
December 31, December 31, Increase %
2009 2008 (Decrease) Change
------------ ------------ --------- -------
Selected Balance Sheet Data
Cash and cash equivalents $ 84.7 $ 91.6 $ (6.9) (8%)
New vehicle inventory 394.2 562.2 (168.0) (30%)
Used vehicle inventory 64.1 59.9 4.2 7%
Parts inventory 41.4 44.5 (3.1) (7%)
Total current assets 815.6 1,019.7 (204.1) (20%)
Floor plan notes payable 434.7 612.8 (178.1) (29%)
Total current liabilities 598.8 854.5 (255.7) (30%)
CAPITALIZATION:
Long-term debt (including
current portion) $ 537.8 $ 599.7 $ (61.9) (10%)
Shareholders' equity 243.6 226.6 17.0 8%
------- -------
Total $ 781.4 $ 826.3 $ (44.9) (5%)
Brand Mix - New Light Vehicle by Revenue
For the Twelve
Months Ended
December 31,
---------------
2009 2008
---- ----
Luxury
BMW 5% 6%
Mercedes-Benz 4% 4%
Lexus 4% 4%
Acura 3% 4%
Infiniti 3% 4%
Other luxury 4% 3%
---- ----
Total luxury 23% 25%
Mid-Line Imports:
Honda 32% 32%
Toyota 12% 12%
Nissan 14% 15%
Other imports 4% 3%
---- ----
Total imports 62% 62%
Mid-Line Domestic:
Ford 8% 6%
General Motors 2% 2%
Chrysler 3% 4%
---- ----
Total domestic 13% 12%
Value 2% 1%
---- ----
Total Light Vehicles 100% 100%
==== ====
Asbury Automotive Group, Inc.
Supplemental Disclosures
(Dollars in millions, except per share data)
(Unaudited)
Our operations during the three and twelve months ended December 31, 2009
and 2008 were impacted by certain items that are not core dealership
operating items, but which we believe are important to highlight when
reviewing and comparing our results of operations; however, due to the
nature of these items, we do not believe it is appropriate to consider
them when forecasting our future results.
The non-core items shown in the tables below, which are components of our
GAAP results, include:
(i) impairment expenses in 2008 totaling $491.7 million, which
consisted of the write-off of all of our goodwill, a $30.9 million
impairment of our franchise rights and other intangible assets and
a $6.1 million impairment of certain property and equipment, each
as a result of a sustained decline in our market capitalization
and a significant decline in our total revenue in the fourth
quarter of 2008;
(ii) costs associated with transitioning our dealerships to
DealerTrack's Arkona dealer management system;
(iii) restructuring costs consisting of severance and retention expenses
related to the relocation of our corporate headquarters and the
elimination of our regional management structure; and the
acceleration of lease costs associated with our former
headquarters in the third quarter of 2009;
(iv) gains on the extinguishment of long-term debt as a result of the
repurchase certain of our senior subordinated notes;
(v) a corporate generated F&I gain related to the sale of our
remaining interest in a pool of maintenance contracts in the
fourth quarter of 2008;
(vi) permanent differences between book and tax basis, which
resulted in an increase to our effective tax rate in the fourth
quarter of 2009 to 46.2%;
(vii) a legal settlements benefit related to legal claims arising in,
and before, the year 2003; and
(viii) executive separation benefits paid in 2008 related to the
departure of our former chief financial officer.
For the Three
Months Ended
December 31,
---------------
2009 2008
---- ----
Non-core items - expense (income):
Impairment expenses $ - $ 528.7
Dealer management system transition costs 0.4 0.1
Restructuring costs - 3.3
Gain on extinguishment of long-term debt (0.1) (27.9)
Corporate generated F&I gain - (4.7)
Tax benefit of non-core items above (0.1) (149.1)
Tax related items 0.9 -
====== ======
Total $ 1.1 $ 350.4
====== ======
Non-core items per dilutive share $ 0.03 $ 11.05
====== ======
Weighted average common shares outstanding
(diluted) 33.0 31.7
====== ======
For the Twelve
Months Ended
December 31,
---------------
2009 2008
---- ----
Non-core items - expense (income):
Impairment expenses $ - $ 528.7
Dealer management system transition
costs 1.9 1.0
Restructuring costs 4.2 5.8
Legal settlements benefit (1.5) -
Gain on extinguishment of long-term debt (0.1) (27.9)
Executive separation benefits expense - 1.7
Corporate generated F&I gain - (4.7)
Tax benefit of non-core items above (1.7) (151.0)
Tax related items 0.1 (1.1)
---- ----
Total $ 2.9 $ 352.5
====== ======
Non-core items per dilutive share $ 0.09 $ 11.12
====== ======
Weighted average common shares outstanding
(diluted) 32.9 31.7
====== ======
Asbury Automotive Group, Inc.
Summary of Debt Covenants
As of and for the Period Ended December 31, 2009
(Dollars in millions, except per vehicle data)
(Unaudited)
Wachovia Credit
Mortgages Facilities
(1) (2)
--------- ---------
Senior Leverage Ratio must be < 3.00: 1.00
SECURED DEBT (numerator)
+ Mortgage notes payable (including
mortgages associated with assets held for sale) $ 169.9
+ Borrowings under revolving credit facility -
+ Capital lease obligations -
+ Interest rate obligations -
+ Other indebtedness 0.2
---------
= TOTAL SECURED DEBT (ex floorplan) $ 170.1
=========
EBITDA (denominator)
+ Net Income - trailing 12 months ("T12") $ 13.4
+ Add back Losses from discontinued operations
- T12 10.8
+ Add back Total interest expense (excluding
floorplan interest) - T12 40.0
+ Add back Income tax expense - T12 14.4
+ Add back Depreciation and amortization - T12 23.5
+ Add back Other non-cash charges - T12* 3.7
---------
= CONSOLIDATED EBITDA 105.8
+ Add back Pro forma acquisitions EBITDA
(as defined) -
+ Add back Pro forma rent savings (as defined) -
- Less Gain on debt extinguishment (0.1)
---------
= CONSOLIDATED PRO FORMA EBITDA $ 105.7
=========
SENIOR LEVERAGE RATIO 1.61
* Includes impairment expenses, stock-based compensation expense,
deferred finance fee amortization and swap amortization.
(1) The "Wachovia Mortgages" are the Company's mortgage notes with
Wachovia Bank, National Association and Wachovia Financial
Services, Inc.
(2) The "Credit Facilities" are the Company's revolving credit facility
with Bank of America, as administrative agent, and the Company's used
vehicle floor plan facility with J.P. Morgan Chase Bank, N.A. and Bank
of America, N.A.
Fixed Charge Coverage Ratio must be greater than 1.20: 1:00
EBITDAR (numerator)
+ Net Income - trailing 12 months ("T12") $ 13.4 $ 13.4
+ Add back Losses from discontinued operations - T12 10.8 10.8
+ Add back Total interest expense (ex floorplan) - T12 40.0 40.0
+ Add back Income tax expense - T12 14.4 14.4
+ Add back Depreciation & amortization - T12 23.5 23.5
+ Add back Other non-cash charges - T12 (as defined)* 11.0 3.7
+ Add back Non-recurring items - T12 (as defined)** 6.1 -
------- -------
= CONSOLIDATED EBITDA 119.2 105.8
+ PLUS Required principal payments - T12 (Rent) 40.4 40.4
- LESS Capital expenditures (as defined) (16.2) (12.2)
- Less Gain on debt extinguishment - (0.1)
------- -------
= TOTAL EARNINGS AVAILABLE FOR FIXED CHARGES $ 143.4 $ 133.9
======= =======
FIXED CHARGES (denominator)
+ Total interest expense (ex Floorplan Interest) - T12 40.0 40.0
- LESS Interest associated with convertible notes - T12 (1.8) (1.8)
+ PLUS Required principal payments - T12 8.8 8.8
+ PLUS Rental expense - T12 40.4 40.4
- LESS Pro forma rent savings (as defined) - -
+ PLUS Cash paid for taxes - T12 - -
------- -------
= TOTAL FIXED CHARGES $ 87.4 $ 87.4
======= =======
FIXED CHARGE COVERAGE RATIO 1.64 1.53
Current Ratio must be greater than 1.20: 1:00
Total current assets (numerator)
+ Total current assets $ 815.6 $ 815.6
+ PLUS Available unused commitments under revolving
credit facility 125.0 126.1
------- -------
= TOTAL CURRENT ASSETS $ 940.6 $ 941.7
======= =======
Total current liabilities (denominator)
+ Total current liabilities $ 598.8 $ 598.8
- LESS Debt balloon payments due within 6-12 months - -
------- -------
= TOTAL CURRENT LIABILITIES $ 598.8 $ 598.8
======= =======
CURRENT RATIO 1.57 1.57
Stockholders' equity $ 243.6
- LESS 50% of net income subsequent to March 31, 2008
(to the extent net income is positive) -
- LESS Proceeds from stock option exercises subsequent
to March 31, 2008 (1.6)
+ ADD Impairment expenses, net of tax 383.0
-------
= ADJUSTED NET WORTH $ 625.0
* Includes impairment expenses, stock-based compensation expense, deferred
finance fee amortization and swap amortization.
** Includes restructuring costs and dealer management system transition
costs.