001-31262 | 01-0609375 | |||
(Commission File Number) | (IRS Employer Identification No.) | |||
2905 Premiere Parkway NW Suite 300 | ||||
Duluth, | GA | 30097 | ||
(Address of principal executive offices) | (Zip Code) |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit No. | Description | ||
Press Release dated July 26, 2019. |
ASBURY AUTOMOTIVE GROUP, INC. | |||
Date: July 26, 2019 | By: | /s/ Sean D. Goodman | |
Name: | Sean D. Goodman | ||
Title: | Senior Vice President and Chief Financial Officer |
Exhibit No. | Description | |
99.1 | Press Release dated July 26, 2019. |
• | Total revenue increased 5%; gross profit increased 6% |
• | Gross margin increased 30 basis points to 16.4% |
• | SG&A as a percentage of gross profit decreased 60 basis points to 68.0% |
• | Adjusted income from operations increased 8% |
• | Adjusted operating margin increased 20 basis points to 4.8% |
• | Adjusted EPS from continuing operations increased 14% |
• | Total revenue increased 2%; gross profit increased 4% |
• | New vehicle revenue was flat; gross profit decreased 9% |
• | Used vehicle retail revenue increased 1%; gross profit decreased 1% |
• | Finance and insurance revenue and gross profit increased 7% |
• | Parts and service revenue increased 8%; gross profit increased 6% |
• | Divested our Nissan store in Houston, TX |
• | Signed agreements to acquire two import stores, one in the Indianapolis market and one in a new market. We expect to close both in the third quarter, subject to customary closing conditions, and these stores to generate approximately $175 million in combined annualized revenue. |
• | Repurchased $4 million of common stock. |
For the Three Months Ended June 30, | Increase (Decrease) | % Change | ||||||||||||
2019 | 2018 | |||||||||||||
REVENUE: | ||||||||||||||
New vehicle | $ | 965.2 | $ | 928.7 | $ | 36.5 | 4 | % | ||||||
Used vehicle: | ||||||||||||||
Retail | 486.6 | 470.9 | 15.7 | 3 | % | |||||||||
Wholesale | 47.0 | 46.0 | 1.0 | 2 | % | |||||||||
Total used vehicle | 533.6 | 516.9 | 16.7 | 3 | % | |||||||||
Parts and service | 224.5 | 204.5 | 20.0 | 10 | % | |||||||||
Finance and insurance, net | 80.2 | 73.5 | 6.7 | 9 | % | |||||||||
TOTAL REVENUE | 1,803.5 | 1,723.6 | 79.9 | 5 | % | |||||||||
GROSS PROFIT: | ||||||||||||||
New vehicle | 38.3 | 40.6 | (2.3 | ) | (6 | )% | ||||||||
Used vehicle: | ||||||||||||||
Retail | 34.7 | 33.6 | 1.1 | 3 | % | |||||||||
Wholesale | 1.2 | 0.5 | 0.7 | 140 | % | |||||||||
Total used vehicle | 35.9 | 34.1 | 1.8 | 5 | % | |||||||||
Parts and service | 140.6 | 129.6 | 11.0 | 8 | % | |||||||||
Finance and insurance, net | 80.2 | 73.5 | 6.7 | 9 | % | |||||||||
TOTAL GROSS PROFIT | 295.0 | 277.8 | 17.2 | 6 | % | |||||||||
OPERATING EXPENSES: | ||||||||||||||
Selling, general and administrative | 200.7 | 190.6 | 10.1 | 5 | % | |||||||||
Depreciation and amortization | 9.0 | 8.5 | 0.5 | 6 | % | |||||||||
Other operating (income) expenses, net | (0.6 | ) | (0.9 | ) | 0.3 | 33 | % | |||||||
INCOME FROM OPERATIONS | 85.9 | 79.6 | 6.3 | 8 | % | |||||||||
OTHER EXPENSES (INCOME): | ||||||||||||||
Floor plan interest expense | 10.5 | 8.0 | 2.5 | 31 | % | |||||||||
Other interest expense, net | 13.6 | 13.2 | 0.4 | 3 | % | |||||||||
Swap interest expense | — | 0.2 | (0.2 | ) | (100 | )% | ||||||||
Gain on divestiture | (11.7 | ) | — | (11.7 | ) | NM | ||||||||
Total other expenses, net | 12.4 | 21.4 | (9.0 | ) | (42 | )% | ||||||||
INCOME BEFORE INCOME TAXES | 73.5 | 58.2 | 15.3 | 26 | % | |||||||||
Income tax expense | 18.6 | 15.0 | 3.6 | 24 | % | |||||||||
NET INCOME | $ | 54.9 | $ | 43.2 | $ | 11.7 | 27 | % | ||||||
EARNINGS PER COMMON SHARE: | ||||||||||||||
Basic— | ||||||||||||||
Net income | $ | 2.87 | $ | 2.13 | $ | 0.74 | 35 | % | ||||||
Diluted— | ||||||||||||||
Net income | $ | 2.84 | $ | 2.11 | $ | 0.73 | 35 | % | ||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||||||||
Basic | 19.1 | 20.3 | (1.2 | ) | (6 | )% | ||||||||
Restricted stock | 0.1 | 0.1 | — | — | % | |||||||||
Performance share units | 0.1 | 0.1 | — | — | % | |||||||||
Diluted | 19.3 | 20.5 | (1.2 | ) | (6 | )% |
For the Three Months Ended June 30, | Increase (Decrease) | % Change | ||||||||||||
2019 | 2018 | |||||||||||||
Unit sales | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | 5,746 | 5,590 | 156 | 3 | % | |||||||||
Import | 15,256 | 15,478 | (222 | ) | (1 | )% | ||||||||
Domestic | 5,447 | 5,001 | 446 | 9 | % | |||||||||
Total new vehicle | 26,449 | 26,069 | 380 | 1 | % | |||||||||
Used vehicle retail | 22,259 | 21,685 | 574 | 3 | % | |||||||||
Used to new ratio | 84.2 | % | 83.2 | % | 100 bps | |||||||||
Average selling price | ||||||||||||||
New vehicle | $ | 36,493 | $ | 35,625 | $ | 868 | 2 | % | ||||||
Used vehicle retail | 21,861 | 21,715 | 146 | 1 | % | |||||||||
Average gross profit per unit | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | $ | 3,341 | $ | 3,470 | $ | (129 | ) | (4 | )% | |||||
Import | 623 | 808 | (185 | ) | (23 | )% | ||||||||
Domestic | 1,762 | 1,740 | 22 | 1 | % | |||||||||
Total new vehicle | 1,448 | 1,557 | (109 | ) | (7 | )% | ||||||||
Used vehicle retail | 1,559 | 1,549 | 10 | 1 | % | |||||||||
Finance and insurance, net | 1,647 | 1,539 | 108 | 7 | % | |||||||||
Front end yield (1) | 3,145 | 3,093 | 52 | 2 | % | |||||||||
Gross margin | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | 6.1 | % | 6.5 | % | (40) bps | |||||||||
Import | 2.2 | % | 2.9 | % | (70) bps | |||||||||
Domestic | 4.4 | % | 4.5 | % | (10) bps | |||||||||
Total new vehicle | 4.0 | % | 4.4 | % | (40) bps | |||||||||
Used vehicle retail | 7.1 | % | 7.1 | % | 0 bps | |||||||||
Parts and service | 62.6 | % | 63.4 | % | (80) bps | |||||||||
Total gross profit margin | 16.4 | % | 16.1 | % | 30 bps | |||||||||
SG&A metrics | ||||||||||||||
Rent expense | $ | 6.8 | $ | 6.3 | $ | 0.5 | 8 | % | ||||||
Total SG&A as a percentage of gross profit | 68.0 | % | 68.6 | % | (60) bps | |||||||||
SG&A, excluding rent expense as a percentage of gross profit | 65.7 | % | 66.3 | % | (60) bps | |||||||||
Operating metrics | ||||||||||||||
Income from operations as a percentage of revenue | 4.8 | % | 4.6 | % | 20 bps | |||||||||
Income from operations as a percentage of gross profit | 29.1 | % | 28.7 | % | 40 bps | |||||||||
Adjusted income from operations as a percentage of revenue | 4.7 | % | 4.6 | % | 10 bps | |||||||||
Adjusted income from operations as a percentage of gross profit | 29.0 | % | 28.4 | % | 60 bps | |||||||||
Revenue mix | ||||||||||||||
New vehicle | 53.5 | % | 53.9 | % | ||||||||||
Used vehicle retail | 27.1 | % | 27.2 | % | ||||||||||
Used vehicle wholesale | 2.6 | % | 2.7 | % | ||||||||||
Parts and service | 12.4 | % | 11.9 | % | ||||||||||
Finance and insurance | 4.4 | % | 4.3 | % | ||||||||||
Total revenue | 100.0 | % | 100.0 | % | ||||||||||
Gross profit mix | ||||||||||||||
New vehicle | 13.0 | % | 14.6 | % | ||||||||||
Used vehicle retail | 11.7 | % | 12.0 | % | ||||||||||
Used vehicle wholesale | 0.4 | % | 0.2 | % | ||||||||||
Parts and service | 47.7 | % | 46.7 | % | ||||||||||
Finance and insurance | 27.2 | % | 26.5 | % | ||||||||||
Total gross profit | 100.0 | % | 100.0 | % |
(1) | Front end yield is calculated as gross profit from new vehicles, used retail vehicles and finance and insurance (net), divided by combined new and used retail unit sales. |
For the Three Months Ended June 30, | Increase (Decrease) | % Change | ||||||||||||
2019 | 2018 | |||||||||||||
Revenue | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | $ | 315.1 | $ | 299.9 | $ | 15.2 | 5 | % | ||||||
Import | 423.3 | 423.8 | (0.5 | ) | — | % | ||||||||
Domestic | 181.4 | 193.2 | (11.8 | ) | (6 | )% | ||||||||
Total new vehicle | 919.8 | 916.9 | 2.9 | — | % | |||||||||
Used Vehicle: | ||||||||||||||
Retail | 465.2 | 462.5 | 2.7 | 1 | % | |||||||||
Wholesale | 45.3 | 44.9 | 0.4 | 1 | % | |||||||||
Total used vehicle | 510.5 | 507.4 | 3.1 | 1 | % | |||||||||
Parts and service | 217.5 | 201.8 | 15.7 | 8 | % | |||||||||
Finance and insurance | 77.0 | 71.8 | 5.2 | 7 | % | |||||||||
Total revenue | $ | 1,724.8 | $ | 1,697.9 | $ | 26.9 | 2 | % | ||||||
Gross profit | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | $ | 19.2 | $ | 19.4 | $ | (0.2 | ) | (1 | )% | |||||
Import | 9.5 | 12.0 | (2.5 | ) | (21 | )% | ||||||||
Domestic | 7.6 | 8.7 | (1.1 | ) | (13 | )% | ||||||||
Total new vehicle | 36.3 | 40.1 | (3.8 | ) | (9 | )% | ||||||||
Used Vehicle: | ||||||||||||||
Retail | 32.9 | 33.3 | (0.4 | ) | (1 | )% | ||||||||
Wholesale | 1.2 | 0.5 | 0.7 | 140 | % | |||||||||
Total used vehicle | 34.1 | 33.8 | 0.3 | 1 | % | |||||||||
Parts and service: | ||||||||||||||
Customer pay | 77.2 | 73.3 | 3.9 | 5 | % | |||||||||
Warranty | 21.6 | 18.2 | 3.4 | 19 | % | |||||||||
Wholesale parts | 5.7 | 5.4 | 0.3 | 6 | % | |||||||||
Parts and service, excluding reconditioning and preparation | 104.5 | 96.9 | 7.6 | 8 | % | |||||||||
Reconditioning and preparation | 31.3 | 31.0 | 0.3 | 1 | % | |||||||||
Total parts and service | 135.8 | 127.9 | 7.9 | 6 | % | |||||||||
Finance and insurance | 77.0 | 71.8 | 5.2 | 7 | % | |||||||||
Total gross profit | $ | 283.2 | $ | 273.6 | $ | 9.6 | 4 | % | ||||||
SG&A expense | $ | 192.1 | $ | 187.3 | $ | 4.8 | 3 | % | ||||||
SG&A expense as a percentage of gross profit | 67.8 | % | 68.5 | % | (70) bps |
For the Three Months Ended June 30, | Increase (Decrease) | % Change | ||||||||||||
2019 | 2018 | |||||||||||||
Unit sales | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | 5,719 | 5,590 | 129 | 2 | % | |||||||||
Import | 15,031 | 15,053 | (22 | ) | — | % | ||||||||
Domestic | 4,483 | 5,001 | (518 | ) | (10 | )% | ||||||||
Total new vehicle | 25,233 | 25,644 | (411 | ) | (2 | )% | ||||||||
Used vehicle retail | 21,176 | 21,252 | (76 | ) | — | % | ||||||||
Used to new ratio | 83.9 | % | 82.9 | % | 100 bps | |||||||||
Average selling price | ||||||||||||||
New vehicle | $ | 36,452 | $ | 35,755 | $ | 697 | 2 | % | ||||||
Used vehicle retail | 21,968 | 21,763 | 205 | 1 | % | |||||||||
Average gross profit per unit | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | $ | 3,357 | $ | 3,470 | $ | (113 | ) | (3 | )% | |||||
Import | 632 | 797 | (165 | ) | (21 | )% | ||||||||
Domestic | 1,695 | 1,740 | (45 | ) | (3 | )% | ||||||||
Total new vehicle | 1,439 | 1,564 | (125 | ) | (8 | )% | ||||||||
Used vehicle retail | 1,554 | 1,567 | (13 | ) | (1 | )% | ||||||||
Finance and insurance, net | 1,659 | 1,531 | 128 | 8 | % | |||||||||
Front end yield (1) | 3,150 | 3,096 | 54 | 2 | % | |||||||||
Gross margin | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | 6.1 | % | 6.5 | % | (40) bps | |||||||||
Import | 2.2 | % | 2.8 | % | (60) bps | |||||||||
Domestic | 4.2 | % | 4.5 | % | (30) bps | |||||||||
Total new vehicle | 3.9 | % | 4.4 | % | (50) bps | |||||||||
Used vehicle retail | 7.1 | % | 7.2 | % | (10 | ) bps | ||||||||
Parts and service: | ||||||||||||||
Parts and service, excluding reconditioning and preparation | 48.0 | % | 48.0 | % | 0 bps | |||||||||
Parts and service, including reconditioning and preparation | 62.4 | % | 63.4 | % | (100) bps | |||||||||
Total gross profit margin | 16.4 | % | 16.1 | % | 30 bps |
(1) | Front end yield is calculated as gross profit from new vehicles, used retail vehicles and finance and insurance (net), divided by combined new and used retail unit sales. |
For the Six Months Ended June 30, | Increase (Decrease) | % Change | ||||||||||||
2019 | 2018 | |||||||||||||
REVENUE: | ||||||||||||||
New vehicle | $ | 1,837.0 | $ | 1,785.8 | $ | 51.2 | 3 | % | ||||||
Used vehicle: | ||||||||||||||
Retail | 944.8 | 906.7 | 38.1 | 4 | % | |||||||||
Wholesale | 98.7 | 94.8 | 3.9 | 4 | % | |||||||||
Total used vehicle | 1,043.5 | 1,001.5 | 42.0 | 4 | % | |||||||||
Parts and service | 442.1 | 403.8 | 38.3 | 9 | % | |||||||||
Finance and insurance, net | 151.7 | 141.7 | 10.0 | 7 | % | |||||||||
TOTAL REVENUE | 3,474.3 | 3,332.8 | 141.5 | 4 | % | |||||||||
GROSS PROFIT: | ||||||||||||||
New vehicle | 76.2 | 79.2 | (3.0 | ) | (4 | )% | ||||||||
Used vehicle: | ||||||||||||||
Retail | 68.3 | 65.8 | 2.5 | 4 | % | |||||||||
Wholesale | 2.1 | 1.8 | 0.3 | 17 | % | |||||||||
Total used vehicle | 70.4 | 67.6 | 2.8 | 4 | % | |||||||||
Parts and service | 275.9 | 254.7 | 21.2 | 8 | % | |||||||||
Finance and insurance, net | 151.7 | 141.7 | 10.0 | 7 | % | |||||||||
TOTAL GROSS PROFIT | 574.2 | 543.2 | 31.0 | 6 | % | |||||||||
OPERATING EXPENSES: | ||||||||||||||
Selling, general and administrative | 391.7 | 374.8 | 16.9 | 5 | % | |||||||||
Depreciation and amortization | 17.6 | 16.7 | 0.9 | 5 | % | |||||||||
Other operating expense (income), net | 1.2 | (1.1 | ) | 2.3 | NM | |||||||||
INCOME FROM OPERATIONS | 163.7 | 152.8 | 10.9 | 7 | % | |||||||||
OTHER EXPENSES (INCOME): | ||||||||||||||
Floor plan interest expense | 20.7 | 14.6 | 6.1 | 42 | % | |||||||||
Other interest expense, net | 27.5 | 26.2 | 1.3 | 5 | % | |||||||||
Swap interest expense | — | 0.4 | (0.4 | ) | (100 | )% | ||||||||
Gain on divestiture | (11.7 | ) | — | (11.7 | ) | NM | ||||||||
Total other expenses, net | 36.5 | 41.2 | (4.7 | ) | (11 | )% | ||||||||
INCOME BEFORE INCOME TAXES | 127.2 | 111.6 | 15.6 | 14 | % | |||||||||
Income tax expense | 31.4 | 28.3 | 3.1 | 11 | % | |||||||||
NET INCOME | $ | 95.8 | $ | 83.3 | $ | 12.5 | 15 | % | ||||||
EARNINGS PER COMMON SHARE: | ||||||||||||||
Basic— | ||||||||||||||
Net income | $ | 4.99 | $ | 4.08 | $ | 0.91 | 22 | % | ||||||
Diluted— | ||||||||||||||
Net income | $ | 4.96 | $ | 4.02 | $ | 0.94 | 23 | % | ||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||||||||
Basic | 19.2 | 20.4 | (1.2 | ) | (6 | )% | ||||||||
Restricted stock | — | 0.1 | (0.1 | ) | (100 | )% | ||||||||
Performance share units | 0.1 | 0.2 | (0.1 | ) | (50 | )% | ||||||||
Diluted | 19.3 | 20.7 | (1.4 | ) | (7 | )% |
For the Six Months Ended June 30, | Increase (Decrease) | % Change | ||||||||||||
2019 | 2018 | |||||||||||||
Unit sales | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | 10,908 | 10,842 | 66 | 1 | % | |||||||||
Import | 29,699 | 29,499 | 200 | 1 | % | |||||||||
Domestic | 9,951 | 9,387 | 564 | 6 | % | |||||||||
Total new vehicle | 50,558 | 49,728 | 830 | 2 | % | |||||||||
Used vehicle retail | 43,342 | 42,255 | 1,087 | 3 | % | |||||||||
Used to new ratio | 85.7 | % | 85.0 | % | 70 bps | |||||||||
Average selling price | ||||||||||||||
New vehicle | $ | 36,335 | $ | 35,911 | $ | 424 | 1 | % | ||||||
Used vehicle retail | 21,799 | 21,458 | 341 | 2 | % | |||||||||
Average gross profit per unit | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | $ | 3,511 | $ | 3,588 | $ | (77 | ) | (2 | )% | |||||
Import | 717 | 803 | (86 | ) | (11 | )% | ||||||||
Domestic | 1,668 | 1,768 | (100 | ) | (6 | )% | ||||||||
Total new vehicle | 1,507 | 1,593 | (86 | ) | (5 | )% | ||||||||
Used vehicle retail | 1,576 | 1,557 | 19 | 1 | % | |||||||||
Finance and insurance, net | 1,616 | 1,541 | 75 | 5 | % | |||||||||
Front end yield (1) | 3,154 | 3,117 | 37 | 1 | % | |||||||||
Gross margin | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | 6.3 | % | 6.6 | % | (30) bps | |||||||||
Import | 2.6 | % | 2.8 | % | (20) bps | |||||||||
Domestic | 4.2 | % | 4.5 | % | (30) bps | |||||||||
Total new vehicle | 4.1 | % | 4.4 | % | (30) bps | |||||||||
Used vehicle retail | 7.2 | % | 7.3 | % | (10) bps | |||||||||
Parts and service | 62.4 | % | 63.1 | % | (70) bps | |||||||||
Total gross profit margin | 16.5 | % | 16.3 | % | 20 bps | |||||||||
SG&A metrics | ||||||||||||||
Rent expense | $ | 13.6 | $ | 12.6 | $ | 1.0 | 8 | % | ||||||
Total SG&A as a percentage of gross profit | 68.2 | % | 69.0 | % | (80) bps | |||||||||
SG&A, excluding rent expense as a percentage of gross profit | 65.8 | % | 66.7 | % | (90) bps | |||||||||
Operating metrics | ||||||||||||||
Income from operations as a percentage of revenue | 4.7 | % | 4.6 | % | 10 | bps | ||||||||
Income from operations as a percentage of gross profit | 28.5 | % | 28.1 | % | 40 bps | |||||||||
Adjusted income from operations as a percentage of revenue | 4.8 | % | 4.6 | % | 20 | bps | ||||||||
Adjusted income from operations as a percentage of gross profit | 28.9 | % | 28.0 | % | 90 bps | |||||||||
Revenue mix | ||||||||||||||
New vehicle | 52.9 | % | 53.6 | % | ||||||||||
Used vehicle retail | 27.2 | % | 27.2 | % | ||||||||||
Used vehicle wholesale | 2.8 | % | 2.8 | % | ||||||||||
Parts and service | 12.7 | % | 12.1 | % | ||||||||||
Finance and insurance | 4.4 | % | 4.3 | % | ||||||||||
Total revenue | 100.0 | % | 100.0 | % | ||||||||||
Gross profit mix | ||||||||||||||
New vehicle | 13.3 | % | 14.6 | % | ||||||||||
Used vehicle retail | 11.9 | % | 12.1 | % | ||||||||||
Used vehicle wholesale | 0.4 | % | 0.3 | % | ||||||||||
Parts and service | 48.0 | % | 46.9 | % | ||||||||||
Finance and insurance | 26.4 | % | 26.1 | % | ||||||||||
Total gross profit | 100.0 | % | 100.0 | % |
(1) | Front end yield is calculated as gross profit from new vehicles, used retail vehicles and finance and insurance (net), divided by combined new and used retail unit sales. |
For the Six Months Ended June 30, | Increase (Decrease) | % Change | ||||||||||||
2019 | 2018 | |||||||||||||
Revenue | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | $ | 603.6 | $ | 586.0 | $ | 17.6 | 3 | % | ||||||
Import | 809.4 | 810.0 | (0.6 | ) | — | % | ||||||||
Domestic | 342.8 | 365.7 | (22.9 | ) | (6 | )% | ||||||||
Total new vehicle | 1,755.8 | 1,761.7 | (5.9 | ) | — | % | ||||||||
Used Vehicle: | ||||||||||||||
Retail | 901.7 | 890.7 | 11.0 | 1 | % | |||||||||
Wholesale | 95.4 | 93.2 | 2.2 | 2 | % | |||||||||
Total used vehicle | 997.1 | 983.9 | 13.2 | 1 | % | |||||||||
Parts and service | 427.8 | 398.3 | 29.5 | 7 | % | |||||||||
Finance and insurance, net | 145.0 | 138.5 | 6.5 | 5 | % | |||||||||
Total revenue | $ | 3,325.7 | $ | 3,282.4 | $ | 43.3 | 1 | % | ||||||
Gross profit | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | $ | 38.3 | $ | 38.9 | $ | (0.6 | ) | (2 | )% | |||||
Import | 20.6 | 22.9 | (2.3 | ) | (10 | )% | ||||||||
Domestic | 13.7 | 16.6 | (2.9 | ) | (17 | )% | ||||||||
Total new vehicle | 72.6 | 78.4 | (5.8 | ) | (7 | )% | ||||||||
Used Vehicle: | ||||||||||||||
Retail | 64.6 | 64.8 | (0.2 | ) | — | % | ||||||||
Wholesale | 2.1 | 1.8 | 0.3 | 17 | % | |||||||||
Total used vehicle | 66.7 | 66.6 | 0.1 | — | % | |||||||||
Parts and service: | ||||||||||||||
Customer pay | 151.9 | 143.1 | 8.8 | 6 | % | |||||||||
Warranty | 42.6 | 36.9 | 5.7 | 15 | % | |||||||||
Wholesale parts | 11.6 | 11.1 | 0.5 | 5 | % | |||||||||
Parts and service, excluding reconditioning and preparation | 206.1 | 191.1 | 15.0 | 8 | % | |||||||||
Reconditioning and preparation | 60.5 | 60.0 | 0.5 | 1 | % | |||||||||
Total parts and service | 266.6 | 251.1 | 15.5 | 6 | % | |||||||||
Finance and insurance | 145.0 | 138.5 | 6.5 | 5 | % | |||||||||
Total gross profit | $ | 550.9 | $ | 534.6 | $ | 16.3 | 3 | % | ||||||
SG&A expense | $ | 374.8 | $ | 368.1 | $ | 6.7 | 2 | % | ||||||
SG&A expense as a percentage of gross profit | 68.0 | % | 68.9 | % | (90) bps |
For the Six Months Ended June 30, | Increase (Decrease) | % Change | ||||||||||||
2019 | 2018 | |||||||||||||
Unit sales | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | 10,869 | 10,842 | 27 | — | % | |||||||||
Import | 28,789 | 28,639 | 150 | 1 | % | |||||||||
Domestic | 8,543 | 9,387 | (844 | ) | (9 | )% | ||||||||
Total new vehicle | 48,201 | 48,868 | (667 | ) | (1 | )% | ||||||||
Used vehicle retail | 41,107 | 41,402 | (295 | ) | (1 | )% | ||||||||
Used to new ratio | 85.3 | % | 84.7 | % | 60 bps | |||||||||
Average selling price | ||||||||||||||
New vehicle | $ | 36,427 | $ | 36,050 | $ | 377 | 1 | % | ||||||
Used vehicle retail | 21,935 | 21,513 | 422 | 2 | % | |||||||||
Average gross profit per unit | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | $ | 3,524 | $ | 3,588 | $ | (64 | ) | (2 | )% | |||||
Import | 716 | 800 | (84 | ) | (11 | )% | ||||||||
Domestic | 1,604 | 1,768 | (164 | ) | (9 | )% | ||||||||
Total new vehicle | 1,506 | 1,604 | (98 | ) | (6 | )% | ||||||||
Used vehicle retail | 1,572 | 1,565 | 7 | — | % | |||||||||
Finance and insurance, net | 1,624 | 1,534 | 90 | 6 | % | |||||||||
Front end yield (1) | 3,160 | 3,121 | 39 | 1 | % | |||||||||
Gross margin | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | 6.3 | % | 6.6 | % | (30) bps | |||||||||
Import | 2.5 | % | 2.8 | % | (30) bps | |||||||||
Domestic | 4.0 | % | 4.5 | % | (50) bps | |||||||||
Total new vehicle | 4.1 | % | 4.5 | % | (40) bps | |||||||||
Used vehicle retail | 7.2 | % | 7.3 | % | (10) bps | |||||||||
Parts and service: | ||||||||||||||
Parts and service, excluding reconditioning and preparation | 48.2 | % | 48.0 | % | 20 bps | |||||||||
Parts and service, including reconditioning and preparation | 62.3 | % | 63.0 | % | (70) bps | |||||||||
Total gross profit margin | 16.6 | % | 16.3 | % | 30 bps |
(1) | Front end yield is calculated as gross profit from new vehicles, used retail vehicles and finance and insurance (net), divided by combined new and used retail unit sales. |
June 30, 2019 | December 31, 2018 | Increase (Decrease) | % Change | |||||||||||
SELECTED BALANCE SHEET DATA | ||||||||||||||
Cash and cash equivalents | $ | 9.6 | $ | 8.3 | $ | 1.3 | 16 | % | ||||||
New vehicle inventory | 895.1 | 867.2 | 27.9 | 3 | % | |||||||||
Used vehicle inventory | 162.2 | 158.9 | 3.3 | 2 | % | |||||||||
Parts inventory | 43.5 | 41.5 | 2.0 | 5 | % | |||||||||
Total current assets | 1,529.5 | 1,553.0 | (23.5 | ) | (2 | )% | ||||||||
Floor plan notes payable | 918.7 | 966.1 | (47.4 | ) | (5 | )% | ||||||||
Total current liabilities | 1,272.6 | 1,303.3 | (30.7 | ) | (2 | )% | ||||||||
CAPITALIZATION: | ||||||||||||||
Long-term debt (including current portion) | $ | 909.6 | $ | 905.3 | $ | 4.3 | — | % | ||||||
Shareholders' equity | 556.3 | 473.2 | 83.1 | 18 | % | |||||||||
Total | $ | 1,465.9 | $ | 1,378.5 | $ | 87.4 | 6 | % |
June 30, 2019 | December 31, 2018 | ||||
DAYS SUPPLY | |||||
New vehicle inventory | 86 | 67 | |||
Used vehicle inventory | 33 | 34 |
For the Six Months Ended June 30, | |||||
2019 | 2018 | ||||
Luxury: | |||||
Mercedes-Benz | 7 | % | 7 | % | |
Lexus | 6 | % | 6 | % | |
BMW | 6 | % | 5 | % | |
Acura | 4 | % | 4 | % | |
Infiniti | 3 | % | 3 | % | |
Other luxury | 7 | % | 8 | % | |
Total luxury | 33 | % | 33 | % | |
Imports: | |||||
Honda | 19 | % | 20 | % | |
Nissan | 9 | % | 11 | % | |
Toyota | 12 | % | 11 | % | |
Other imports | 5 | % | 5 | % | |
Total imports | 45 | % | 47 | % | |
Domestic: | |||||
Ford | 10 | % | 10 | % | |
Chevrolet | 6 | % | 5 | % | |
Dodge | 3 | % | 2 | % | |
Other domestics | 3 | % | 3 | % | |
Total domestic | 22 | % | 20 | % | |
Total New Vehicle Revenue | 100 | % | 100 | % |
For the Twelve Months Ended | |||||||
June 30, 2019 | March 31, 2019 | ||||||
(Dollars in millions) | |||||||
Adjusted leverage ratio: | |||||||
Long-term debt (including current portion) | $ | 909.6 | $ | 913.4 | |||
Calculation of earnings before interest, taxes, depreciation and amortization ("EBITDA"): | |||||||
Net Income | $ | 180.5 | $ | 168.8 | |||
Add: | |||||||
Depreciation and amortization | 34.7 | 34.1 | |||||
Income tax expense | 59.8 | 56.3 | |||||
Swap and other interest expense | 54.4 | 54.1 | |||||
Earnings before interest, taxes, depreciation and amortization ("EBITDA") | $ | 329.4 | $ | 313.3 | |||
Non-core items - expense (income): | |||||||
Gain on divestiture | $ | (11.7 | ) | $ | — | ||
Gain on sale of real estate | (0.3 | ) | $ | — | |||
Franchise rights impairment | 3.7 | 3.7 | |||||
Fixed assets write-off | 2.4 | 2.4 | |||||
Legal settlements | — | (0.7 | ) | ||||
Total non-core items | (5.9 | ) | 5.4 | ||||
Adjusted EBITDA | $ | 323.5 | $ | 318.7 | |||
Adjusted leverage ratio | 2.8 | 2.9 |
For the Three Months Ended June 30, | |||||||
2019 | 2018 | ||||||
(In millions, except per share data) | |||||||
Adjusted income from operations: | |||||||
Income from operations | $ | 85.9 | $ | 79.6 | |||
Gain on sale of real estate | (0.3 | ) | — | ||||
Legal settlements | — | (0.7 | ) | ||||
Adjusted income from operations | $ | 85.6 | $ | 78.9 | |||
Adjusted net income: | |||||||
Net income | $ | 54.9 | $ | 43.2 | |||
Non-core items - (income) expense: | |||||||
Gain on divestiture | (11.7 | ) | — | ||||
Gain on sale of real estate | (0.3 | ) | — | ||||
Legal settlements | — | (0.7 | ) | ||||
Income tax on non-core items above | 3.0 | 0.2 | |||||
Total non-core items | (9.0 | ) | (0.5 | ) | |||
Adjusted net income | $ | 45.9 | $ | 42.7 | |||
Adjusted diluted earnings per share (EPS): | |||||||
Diluted EPS | $ | 2.84 | $ | 2.11 | |||
Total non-core items | (0.46 | ) | (0.03 | ) | |||
Adjusted diluted EPS | $ | 2.38 | $ | 2.08 | |||
Weighted average common shares outstanding - diluted | 19.3 | 20.5 |
For the Six Months Ended June 30, | |||||||
2019 | 2018 | ||||||
(In millions, except per share data) | |||||||
Adjusted income from operations: | |||||||
Income from operations | $ | 163.7 | $ | 152.8 | |||
Gain on sale of real estate | (0.3 | ) | — | ||||
Fixed assets write-off | 2.4 | — | |||||
Legal settlements | — | (0.7 | ) | ||||
Adjusted income from operations | $ | 165.8 | $ | 152.1 | |||
Adjusted net income: | |||||||
Net income | $ | 95.8 | $ | 83.3 | |||
Non-core items - (income) expense: | |||||||
Gain on divestiture | (11.7 | ) | — | ||||
Gain on sale of real estate | (0.3 | ) | — | ||||
Fixed assets write-off | 2.4 | — | |||||
Legal settlements | — | (0.7 | ) | ||||
Income tax on non-core items above | 2.4 | 0.2 | |||||
Total non-core items | (7.2 | ) | (0.5 | ) | |||
Adjusted net income | $ | 88.6 | $ | 82.8 | |||
Adjusted diluted earnings per share (EPS): | |||||||
Diluted EPS | $ | 4.96 | $ | 4.02 | |||
Total non-core items | (0.37 | ) | (0.02 | ) | |||
Adjusted diluted EPS | $ | 4.59 | $ | 4.0 | |||
Weighted average common shares outstanding - diluted | 19.3 | 20.7 |