abg-20200630
000114498012/312020Q2falseus-gaap:AccountingStandardsUpdate201802MemberP6M00011449802020-01-012020-06-30xbrli:shares00011449802020-07-29iso4217:USD00011449802020-06-3000011449802019-12-31iso4217:USDxbrli:shares00011449802020-04-012020-06-3000011449802019-04-012019-06-3000011449802019-01-012019-06-300001144980us-gaap:CommonStockMember2019-12-310001144980us-gaap:AdditionalPaidInCapitalMember2019-12-310001144980us-gaap:RetainedEarningsMember2019-12-310001144980us-gaap:TreasuryStockMember2019-12-310001144980us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001144980us-gaap:RetainedEarningsMember2020-01-012020-03-3100011449802020-01-012020-03-310001144980us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310001144980us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-310001144980us-gaap:CommonStockMember2020-01-012020-03-310001144980us-gaap:TreasuryStockMember2020-01-012020-03-310001144980us-gaap:CommonStockMember2020-03-310001144980us-gaap:AdditionalPaidInCapitalMember2020-03-310001144980us-gaap:RetainedEarningsMember2020-03-310001144980us-gaap:TreasuryStockMember2020-03-310001144980us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-3100011449802020-03-310001144980us-gaap:RetainedEarningsMember2020-04-012020-06-300001144980us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300001144980us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-300001144980us-gaap:CommonStockMember2020-04-012020-06-300001144980us-gaap:TreasuryStockMember2020-04-012020-06-300001144980us-gaap:CommonStockMember2020-06-300001144980us-gaap:AdditionalPaidInCapitalMember2020-06-300001144980us-gaap:RetainedEarningsMember2020-06-300001144980us-gaap:TreasuryStockMember2020-06-300001144980us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300001144980us-gaap:CommonStockMember2018-12-310001144980us-gaap:AdditionalPaidInCapitalMember2018-12-310001144980us-gaap:RetainedEarningsMember2018-12-310001144980us-gaap:TreasuryStockMember2018-12-310001144980us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-3100011449802018-12-310001144980us-gaap:RetainedEarningsMember2019-01-012019-03-3100011449802019-01-012019-03-310001144980us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-03-310001144980us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2018-12-310001144980srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-310001144980srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2018-12-310001144980us-gaap:AdditionalPaidInCapitalMember2019-01-012019-03-310001144980us-gaap:CommonStockMember2019-01-012019-03-310001144980us-gaap:TreasuryStockMember2019-01-012019-03-310001144980us-gaap:CommonStockMember2019-03-310001144980us-gaap:AdditionalPaidInCapitalMember2019-03-310001144980us-gaap:RetainedEarningsMember2019-03-310001144980us-gaap:TreasuryStockMember2019-03-310001144980us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-03-3100011449802019-03-310001144980us-gaap:RetainedEarningsMember2019-04-012019-06-300001144980us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-04-012019-06-300001144980us-gaap:AdditionalPaidInCapitalMember2019-04-012019-06-300001144980us-gaap:CommonStockMember2019-04-012019-06-300001144980us-gaap:TreasuryStockMember2019-04-012019-06-300001144980us-gaap:CommonStockMember2019-06-300001144980us-gaap:AdditionalPaidInCapitalMember2019-06-300001144980us-gaap:RetainedEarningsMember2019-06-300001144980us-gaap:TreasuryStockMember2019-06-300001144980us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-3000011449802019-06-30abg:franchiseabg:dealership_locationabg:VehicleBrandsabg:CollisionRepairCentersabg:MetropolitanMarketsabg:statesxbrli:pure0001144980abg:MidlineImportBrandsMember2020-01-012020-06-300001144980abg:LuxuryBrandsMember2020-01-012020-06-300001144980abg:DomesticBrandsMember2020-01-012020-06-30abg:numberOfSubsidiaries0001144980us-gaap:SubsequentEventMemberabg:AssetPurchaseAgreementMember2020-07-060001144980us-gaap:SubsequentEventMemberabg:AssetPurchaseAgreementMember2020-07-062020-07-06abg:collision_center0001144980us-gaap:RestrictedStockUnitsRSUMember2020-04-012020-06-300001144980us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-06-300001144980srt:MinimumMember2020-01-012020-06-300001144980srt:MaximumMember2020-01-012020-06-300001144980abg:NewvehicleMemberabg:NewandusedvehicleMember2020-04-012020-06-300001144980abg:NewvehicleMemberabg:NewandusedvehicleMember2019-04-012019-06-300001144980abg:UsedvehicleretailMemberabg:NewandusedvehicleMember2020-04-012020-06-300001144980abg:UsedvehicleretailMemberabg:NewandusedvehicleMember2019-04-012019-06-300001144980abg:UsedvehiclewholesaleMemberabg:NewandusedvehicleMember2020-04-012020-06-300001144980abg:UsedvehiclewholesaleMemberabg:NewandusedvehicleMember2019-04-012019-06-300001144980abg:NewandusedvehicleMember2020-04-012020-06-300001144980abg:NewandusedvehicleMember2019-04-012019-06-300001144980abg:PartsandservicesMemberabg:SaleofvehiclepartsandaccessoriesMember2020-04-012020-06-300001144980abg:PartsandservicesMemberabg:SaleofvehiclepartsandaccessoriesMember2019-04-012019-06-300001144980abg:PartsandservicesMemberabg:VehiclerepairandmaintenanceservicesMember2020-04-012020-06-300001144980abg:PartsandservicesMemberabg:VehiclerepairandmaintenanceservicesMember2019-04-012019-06-300001144980abg:PartsandservicesMember2020-04-012020-06-300001144980abg:PartsandservicesMember2019-04-012019-06-300001144980abg:FinanceandinsuranceMember2020-04-012020-06-300001144980abg:FinanceandinsuranceMember2019-04-012019-06-300001144980abg:NewvehicleMemberabg:NewandusedvehicleMember2020-01-012020-06-300001144980abg:NewvehicleMemberabg:NewandusedvehicleMember2019-01-012019-06-300001144980abg:UsedvehicleretailMemberabg:NewandusedvehicleMember2020-01-012020-06-300001144980abg:UsedvehicleretailMemberabg:NewandusedvehicleMember2019-01-012019-06-300001144980abg:UsedvehiclewholesaleMemberabg:NewandusedvehicleMember2020-01-012020-06-300001144980abg:UsedvehiclewholesaleMemberabg:NewandusedvehicleMember2019-01-012019-06-300001144980abg:NewandusedvehicleMember2020-01-012020-06-300001144980abg:NewandusedvehicleMember2019-01-012019-06-300001144980abg:PartsandservicesMemberabg:SaleofvehiclepartsandaccessoriesMember2020-01-012020-06-300001144980abg:PartsandservicesMemberabg:SaleofvehiclepartsandaccessoriesMember2019-01-012019-06-300001144980abg:PartsandservicesMemberabg:VehiclerepairandmaintenanceservicesMember2020-01-012020-06-300001144980abg:PartsandservicesMemberabg:VehiclerepairandmaintenanceservicesMember2019-01-012019-06-300001144980abg:PartsandservicesMember2020-01-012020-06-300001144980abg:PartsandservicesMember2019-01-012019-06-300001144980abg:FinanceandinsuranceMember2020-01-012020-06-300001144980abg:FinanceandinsuranceMember2019-01-012019-06-300001144980abg:VehiclerepairandmaintenanceservicesMemberabg:NewandusedvehicleMember2019-12-310001144980abg:FinanceandinsuranceMember2019-12-310001144980abg:VehiclerepairandmaintenanceservicesMemberabg:NewandusedvehicleMember2020-01-012020-03-310001144980abg:FinanceandinsuranceMember2020-01-012020-03-310001144980abg:VehiclerepairandmaintenanceservicesMemberabg:NewandusedvehicleMember2020-03-310001144980abg:FinanceandinsuranceMember2020-03-310001144980abg:VehiclerepairandmaintenanceservicesMemberabg:NewandusedvehicleMember2020-04-012020-06-300001144980abg:VehiclerepairandmaintenanceservicesMemberabg:NewandusedvehicleMember2020-06-300001144980abg:FinanceandinsuranceMember2020-06-300001144980us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMemberstpr:CO2020-01-012020-06-300001144980us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMemberstpr:IN2019-01-012019-06-300001144980us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2019-01-012019-06-300001144980us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2020-01-012020-06-300001144980us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2020-06-300001144980us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2019-12-310001144980us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMemberstpr:GA2020-01-012020-06-300001144980us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMemberstpr:MS2020-01-012020-06-300001144980us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMemberstpr:TX2019-01-012019-06-3000011449802020-03-240001144980abg:VehicleReceivablesMember2020-06-300001144980abg:VehicleReceivablesMember2019-12-310001144980abg:ManufacturerReceivablesMember2020-06-300001144980abg:ManufacturerReceivablesMember2019-12-310001144980abg:OtherTradeAccountsReceivableMember2020-06-300001144980abg:OtherTradeAccountsReceivableMember2019-12-310001144980abg:NewVehiclesMember2020-06-300001144980abg:NewVehiclesMember2019-12-310001144980abg:UsedVehiclesMember2020-06-300001144980abg:UsedVehiclesMember2019-12-310001144980abg:PartsAndAccessoriesMember2020-06-300001144980abg:PartsAndAccessoriesMember2019-12-310001144980us-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember2020-06-300001144980abg:NewVehiclesMember2020-01-012020-06-300001144980abg:NewVehiclesMember2019-01-012019-06-300001144980abg:PendingDispositionMember2019-12-31abg:property0001144980us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMemberabg:VacantPropertyMember2020-06-300001144980us-gaap:SubsequentEventMember2020-07-012020-07-290001144980abg:BankOfAmericaNAMemberus-gaap:StandbyLettersOfCreditMember2019-12-310001144980abg:NewVehicleFloorPlanMemberabg:BankOfAmericaNAMember2019-12-310001144980us-gaap:RevolvingCreditFacilityMemberabg:BankOfAmericaNAMember2020-03-130001144980us-gaap:LineOfCreditMemberabg:UsedVehicleFloorPlanFacilityMember2020-03-180001144980us-gaap:LineOfCreditMemberabg:UsedVehicleFloorPlanFacilityMember2020-04-012020-06-300001144980us-gaap:SeniorSubordinatedNotesMemberabg:SixPointZeroPercentSeniorSubordinatedNotesDue2024Member2020-06-300001144980us-gaap:SeniorSubordinatedNotesMemberabg:SixPointZeroPercentSeniorSubordinatedNotesDue2024Member2019-12-310001144980abg:FourPointFiveZeroPercentSeniorNotesdue2028Memberus-gaap:SeniorNotesMember2020-06-300001144980abg:FourPointFiveZeroPercentSeniorNotesdue2028Memberus-gaap:SeniorNotesMember2019-12-310001144980abg:FourPointSevenFivePercentSeniorNotesdue2030Memberus-gaap:SeniorNotesMember2020-06-300001144980abg:FourPointSevenFivePercentSeniorNotesdue2030Memberus-gaap:SeniorNotesMember2019-12-310001144980us-gaap:MortgagesMember2020-06-300001144980us-gaap:MortgagesMember2019-12-310001144980abg:A2018BofARealEstateFacilityMemberabg:BankOfAmericaNAMember2020-06-300001144980abg:A2018BofARealEstateFacilityMemberabg:BankOfAmericaNAMember2019-12-310001144980abg:WellsFargoBankNationalAssociationMemberabg:A2018WellsFargoMasterLoanFacilityMember2020-06-300001144980abg:WellsFargoBankNationalAssociationMemberabg:A2018WellsFargoMasterLoanFacilityMember2019-12-310001144980abg:A2013BofARealEstateFacilityMemberabg:BankOfAmericaNAMember2020-06-300001144980abg:A2013BofARealEstateFacilityMemberabg:BankOfAmericaNAMember2019-12-310001144980abg:A2015WellsFargoMasterLoanFacilityMemberabg:WellsFargoBankNationalAssociationMember2020-06-300001144980abg:A2015WellsFargoMasterLoanFacilityMemberabg:WellsFargoBankNationalAssociationMember2019-12-310001144980abg:A2019BankofAmericaRevolvingCreditFacilityMemberabg:BankOfAmericaNAMember2020-06-300001144980abg:A2019BankofAmericaRevolvingCreditFacilityMemberabg:BankOfAmericaNAMember2019-12-310001144980abg:A2018BofARealEstateFacilityMember2019-12-310001144980abg:A2015WellsFargoMasterLoanFacilityMember2019-12-310001144980us-gaap:SeniorSubordinatedNotesMemberabg:SixPointZeroPercentSeniorSubordinatedNotesDue2024Member2020-03-042020-03-040001144980us-gaap:SeniorSubordinatedNotesMemberabg:SixPointZeroPercentSeniorSubordinatedNotesDue2024Member2020-03-040001144980abg:FourPointFiveZeroPercentSeniorNotesdue2028Memberus-gaap:SeniorNotesMember2020-02-190001144980abg:FourPointSevenFivePercentSeniorNotesdue2030Memberus-gaap:SeniorNotesMember2020-02-190001144980us-gaap:SeniorNotesMember2020-02-190001144980us-gaap:SeniorNotesMember2020-03-302020-03-300001144980abg:ReastatedCreditAgreementMemberabg:BankOfAmericaNAMember2020-06-300001144980abg:BankOfAmericaNAMemberabg:NewVehicleFloorPlanFacilityMember2020-06-300001144980abg:UsedVehicleFloorPlanFacilityMemberabg:BankOfAmericaNAMember2020-06-300001144980abg:A2019BankofAmericaRevolvingCreditFacilityMemberabg:BankOfAmericaNAMember2020-03-180001144980us-gaap:SubsequentEventMemberabg:A2019BankofAmericaRevolvingCreditFacilityMemberabg:BankOfAmericaNAMember2020-07-012020-07-290001144980abg:NewBofARealEstateFacilityMemberus-gaap:ScenarioPlanMemberabg:BankOfAmericaNAMember2020-02-070001144980abg:WellsFargoBankNationalAssociationMemberabg:A2018WellsFargoMasterLoanFacilityMember2020-06-260001144980abg:FourPointFiveZeroPercentSeniorNotesdue2028Memberus-gaap:SeniorSubordinatedNotesMember2020-06-300001144980abg:FourPointSevenFivePercentSeniorNotesdue2030Memberus-gaap:SeniorSubordinatedNotesMember2020-06-300001144980abg:InterestRateSwap1.1Member2015-06-300001144980abg:InterestRateSwap1.1Member2020-06-300001144980us-gaap:InterestRateSwapMember2013-11-300001144980us-gaap:InterestRateSwapMember2020-06-300001144980us-gaap:OtherLiabilitiesMemberus-gaap:FairValueInputsLevel2Member2020-06-300001144980us-gaap:OtherLiabilitiesMemberus-gaap:FairValueInputsLevel2Member2019-12-310001144980us-gaap:InterestRateSwapMemberabg:OtherCurrentAssetsLiabilitiesMember2020-06-300001144980us-gaap:InterestRateSwapMemberabg:OtherCurrentAssetsLiabilitiesMember2019-12-310001144980us-gaap:InterestRateSwapMemberabg:OtherNoncurrentAssetsLiabilitiesMember2020-06-300001144980us-gaap:InterestRateSwapMemberabg:OtherNoncurrentAssetsLiabilitiesMember2019-12-310001144980us-gaap:InterestRateSwapMember2019-12-310001144980us-gaap:InterestRateSwapMember2020-04-012020-06-300001144980us-gaap:InterestRateSwapMemberus-gaap:InterestExpenseMember2020-04-012020-06-300001144980us-gaap:InterestRateSwapMember2019-04-012019-06-300001144980us-gaap:InterestRateSwapMemberabg:FloorPlanInterestExpenseandOtherInterestExpenseMember2019-04-012019-06-300001144980us-gaap:InterestRateSwapMember2020-01-012020-06-300001144980us-gaap:InterestRateSwapMemberus-gaap:InterestExpenseMember2020-01-012020-06-300001144980us-gaap:InterestRateSwapMember2019-01-012019-06-300001144980us-gaap:InterestRateSwapMemberabg:FloorPlanInterestExpenseandOtherInterestExpenseMember2019-01-012019-06-300001144980abg:ReastatedCreditAgreementMemberus-gaap:GuaranteeObligationsMemberabg:BankOfAmericaNAMember2020-06-300001144980us-gaap:GuaranteeObligationsMember2020-06-30
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2020
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
       
For the transition period from              to
Commission file number: 001-31262  
ASBURY AUTOMOTIVE GROUP, INC.
(Exact name of Registrant as specified in its charter)
Delaware01-0609375
(State or other jurisdiction of
incorporation or organization)
 (I.R.S. Employer
Identification No.)
2905 Premiere Parkway NW,Suite 300 
Duluth,Georgia30097
(Address of principal executive offices) (Zip Code)
(770) 418-8200
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Trading
Title of each classSymbol(s)Name of each exchange on which registered
Common stock, $0.01 par value per shareABGNew York Stock Exchange
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  x    No  o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act:
Large Accelerated Filer  Accelerated Filer
Non-Accelerated FilerSmaller Reporting Company
Emerging Growth Company


Table of Contents
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  x
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: The number of shares of common stock outstanding as of July 29, 2020 was 19,289,427.


Table of Contents
ASBURY AUTOMOTIVE GROUP, INC.

TABLE OF CONTENTS

  Page
PART I—Financial Information
PART II—Other Information








Table of Contents
PART I. FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements

ASBURY AUTOMOTIVE GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except par value and share data)
(Unaudited)
 June 30, 2020December 31, 2019
ASSETS
CURRENT ASSETS:
Cash and cash equivalents$613.2  $3.5  
Contracts-in-transit115.1  194.7  
Accounts receivable, net87.7  136.2  
Inventories636.4  985.0  
Assets held for sale28.7  154.2  
Other current assets110.6  129.0  
Total current assets1,591.7  1,602.6  
PROPERTY AND EQUIPMENT, net922.8  909.7  
OPERATING LEASE RIGHT-OF-USE ASSETS90.2  65.6  
GOODWILL206.5  201.7  
INTANGIBLE FRANCHISE RIGHTS113.2  121.7  
OTHER LONG-TERM ASSETS10.0  10.0  
Total assets$2,934.4  $2,911.3  
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Floor plan notes payable—trade, net$57.5  $130.3  
Floor plan notes payable—non-trade, net468.7  657.7  
Current maturities of long-term debt51.4  32.4  
Current maturities of operating leases16.4  17.0  
Accounts payable and accrued liabilities299.2  308.7  
Liabilities associated with assets held for sale  100.9  
Total current liabilities893.2  1,247.0  
LONG-TERM DEBT1,182.1  907.0  
OPERATING LEASE LIABILITIES77.6  52.6  
DEFERRED INCOME TAXES24.7  26.0  
OTHER LONG-TERM LIABILITIES43.7  32.4  
COMMITMENTS AND CONTINGENCIES (Note 12)
SHAREHOLDERS' EQUITY:
Preferred stock, $.01 par value; 10,000,000 shares authorized; none issued or outstanding
    
Common stock, $.01 par value; 90,000,000 shares authorized; 41,137,741 and 41,072,080 shares issued, including shares held in treasury, respectively
0.4  0.4  
Additional paid-in capital589.5  582.9  
Retained earnings1,163.6  1,094.5  
Treasury stock, at cost; 21,848,174 and 21,791,707 shares, respectively
(1,033.7) (1,028.6) 
Accumulated other comprehensive loss(6.7) (2.9) 
Total shareholders' equity713.1  646.3  
Total liabilities and shareholders' equity$2,934.4  $2,911.3  


See accompanying Notes to Condensed Consolidated Financial Statements
4

Table of Contents
ASBURY AUTOMOTIVE GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
(Unaudited)
 For the Three Months Ended June 30,For the Six Months Ended June 30,
 2020201920202019
REVENUE:
New vehicle$761.8  $965.2  $1,583.9  $1,837.0  
Used vehicle447.5  533.6  940.7  1,043.5  
Parts and service169.2  224.5  390.8  442.1  
Finance and insurance, net66.6  80.2  137.0  151.7  
TOTAL REVENUE1,445.1  1,803.5  3,052.4  3,474.3  
COST OF SALES:
New vehicle723.2  926.9  1,508.9  1,760.8  
Used vehicle410.4  497.7  872.9  973.1  
Parts and service68.7  83.9  155.4  166.2  
TOTAL COST OF SALES1,202.3  1,508.5  2,537.2  2,900.1  
GROSS PROFIT242.8  295.0  515.2  574.2  
OPERATING EXPENSES:
Selling, general, and administrative152.2  200.7  346.9  391.7  
Depreciation and amortization9.7  9.0  19.2  17.6  
Franchise rights impairment    23.0    
Other operating (income) expense, net(1.3) (0.6) 8.9  1.2  
INCOME FROM OPERATIONS82.2  85.9  117.2  163.7  
OTHER EXPENSES (INCOME):
Floor plan interest expense4.1  10.5  11.1  20.7  
Other interest expense, net11.8  13.6  28.8  27.5  
Loss on extinguishment of long-term debt, net    20.6    
Gain on dealership divestitures, net  (11.7) (33.7) (11.7) 
Total other expenses, net15.9  12.4  26.8  36.5  
INCOME BEFORE INCOME TAXES66.3  73.5  90.4  127.2  
Income tax expense16.7  18.6  21.3  31.4  
NET INCOME$49.6  $54.9  $69.1  $95.8  
EARNINGS PER SHARE:
Basic—
Net income$2.58  $2.87  $3.60  $4.99  
Diluted—
Net income$2.57  $2.84  $3.58  $4.96  
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic19.219.119.219.2
Restricted stock0.1
Performance share units0.10.10.10.1
Diluted19.319.319.319.3






 See accompanying Notes to Condensed Consolidated Financial Statements
5

Table of Contents
ASBURY AUTOMOTIVE GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In millions)
(Unaudited)
 For the Three Months Ended June 30,For the Six Months Ended June 30,
 202020192020 2019
Net income$49.6  $54.9  $69.1  $95.8  
Other comprehensive (loss) income:
Change in fair value of cash flow swaps(0.6) (2.5) (5.1) (4.3) 
Income tax benefit associated with cash flow swaps0.2  0.6  1.3  1.1  
Comprehensive income$49.2   $53.0  $65.3   $92.6  











































See accompanying Notes to Condensed Consolidated Financial Statements
6

Table of Contents
ASBURY AUTOMOTIVE GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(Dollars in millions)
(Unaudited)
 Common StockAdditional
Paid-in
Capital
Retained
Earnings
Treasury StockAccumulated
Other
Comprehensive
Income (Loss)
Total
 SharesAmountSharesAmount
Balances, December 31, 201941,072,080  $0.4  $582.9  $1,094.5  21,791,707  $(1,028.6) $(2.9) $646.3  
Comprehensive Income:
Net income—  —  —  19.5  —  —  —  19.5  
Change in fair value of cash flow swaps, net of reclassification adjustment and $1.1 tax benefit
—  —  —  —  —  —  (3.4) (3.4) 
Other comprehensive income—  —  —    —  —  (3.4) (3.4) 
Share-based compensation—  —  3.8  —  —  —  —  3.8  
Issuance of common stock, net of forfeitures in connection with share-based payment arrangements68,577  —  (0.3) —  —  —  —  (0.3) 
Repurchase of common stock associated with net share settlements of employee share-based awards—  —  —  —  53,915  (5.0) —  (5.0) 
Balances, March 31, 202041,140,657  $0.4  $586.4  $1,114.0  21,845,622  $(1,033.6) $(6.3) $660.9  
Comprehensive Income:
Net income—  —  49.6  —  —  —  49.6  
Change in fair value of cash flow swaps, net of reclassification adjustment and $0.2 tax benefit
—  —  —  —  —  —  (0.4) (0.4) 
Other comprehensive income—  —  —    —  —  (0.4) (0.4) 
Share-based compensation—  —  3.1  —  —  3.1  
Forfeitures in connection with share-based payment arrangements(2,916) —    —  —  —  —    
Repurchase of common stock associated with net share settlements of employee share-based awards—  —  —  —  2,552  (0.1) —  (0.1) 
Balances, June 30, 202041,137,741  $0.4  $589.5  $1,163.6  21,848,174  $(1,033.7) $(6.7) $713.1  

7

Table of Contents
 Common StockAdditional
Paid-in
Capital
Retained
Earnings
Treasury StockAccumulated
Other
Comprehensive
Income (Loss)
Total
 SharesAmountSharesAmount
Balances, December 31, 201841,065,069  $0.4  $572.9  $922.7  21,719,339  $(1,023.4) $0.6  $473.2  
Comprehensive Income:
Net income—  —  —  40.9  —  —  —  40.9  
Change in fair value of cash flow swaps, net of reclassification adjustment and $0.5 tax benefit
—  —  —  —  —  —  (1.3) (1.3) 
Other comprehensive income—  —  —  40.9  —  —  (1.3) 39.6  
Cumulative effect adjustment of ASU 2018-02
—  —  —  0.2  —  —  (0.2)   
Share-based compensation—  —  3.9  —  —  —  —  3.9  
Issuance of common stock, net of forfeitures in connection with share-based payment arrangements238,078  —  —  —  —  —  —    
Repurchase of common stock associated with net share settlement of employee share-based awards—  —  —  —  66,912  (4.7) —  (4.7) 
Share repurchases—  —  —  —  108,978  (7.4) —  (7.4) 
Retirement of previously repurchased common stock(108,978) —  (1.3) (6.1) (108,978) 7.4  —    
Balances, March 31, 201941,194,169  $0.4  $575.5  $957.7  21,786,251  $(1,028.1) $(0.9) $504.6  
Comprehensive Income:
Net income—  —  —  54.9  —  —  —  54.9  
Change in fair value of cash flow swaps, net of reclassification adjustment and $0.6 tax benefit
—  —  —  —  —  —  (1.9) (1.9) 
Other comprehensive loss—  —  —  54.9  —  —  (1.9) 53.0  
Share-based compensation—  —  2.9  —  —  —  —  2.9  
Issuance of common stock, net of forfeitures in connection with share-based payment arrangements(3,656) —  —  —  —  —  —    
Repurchase of common stock associated with net share settlement of employee share-based awards—  —  —  —  3,328  (0.3) —  (0.3) 
Share repurchases—  —  —  —  50,436  (3.9) —  (3.9) 
Retirement of previously repurchased common stock(50,436) —  (0.6) (3.3) (50,436) 3.9  —    
Balances, June 30, 201941,140,077  $0.4  $577.8  $1,009.3  21,789,579  $(1,028.4) $(2.8) $556.3  















See accompanying Notes to Condensed Consolidated Financial Statements
8

Table of Contents
ASBURY AUTOMOTIVE GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
 For the Six Months Ended June 30,
 20202019
CASH FLOW FROM OPERATING ACTIVITIES:
Net income$69.1  $95.8  
Adjustments to reconcile net income to net cash provided by operating activities—
Depreciation and amortization19.2  17.6  
Share-based compensation6.6  6.8  
Franchise rights impairment23.0    
Loss on extinguishment of long-term debt, net20.6    
Loaner vehicle amortization10.8  11.8  
Gain on divestitures, net(33.7) (11.7) 
Change in right-of-use asset9.3  9.3  
Other adjustments, net0.5  2.9  
Changes in operating assets and liabilities, net of acquisitions and divestitures—
Contracts-in-transit79.6  44.4  
Accounts receivable48.6  12.9  
Inventories463.5  82.4  
Other current assets(61.9) (90.5) 
Floor plan notes payable—trade, net(77.0) (4.7) 
Accounts payable and other current liabilities(21.7) (8.2) 
Operating lease liabilities(9.5) (9.5) 
Other long-term assets and liabilities, net7.6  1.2  
Net cash provided by operating activities554.6  160.5  
CASH FLOW FROM INVESTING ACTIVITIES:
Capital expenditures—excluding real estate(18.2) (15.5) 
Capital expenditures—real estate(2.3)   
Purchases of previously leased real estate  (4.9) 
Acquisitions(63.1) (118.5) 
Divestitures115.5  39.1  
Proceeds from the sale of assets4.2  7.5  
Net cash provided by (used in) investing activities36.1  (92.3) 
CASH FLOW FROM FINANCING ACTIVITIES:
Floor plan borrowings—non-trade1,633.8  2,044.9  
Floor plan borrowings—acquisitions27.1  47.7  
Floor plan repayments—non-trade(1,858.0) (2,121.2) 
Floor plan repayments—non-trade divestitures(50.5) (14.1) 
Proceeds from borrowings1,424.7    
Repayments of borrowings(1,157.2) (7.9) 
Proceeds from sale and leaseback transaction7.3    
Payment of debt issuance costs(3.1)   
Repurchases of common stock, including shares associated with net share settlement of
employee share-based awards
(5.1) (16.3) 
Net cash provided by (used in) financing activities19.0  (66.9) 
Net increase in cash and cash equivalents609.7  1.3  
CASH AND CASH EQUIVALENTS, beginning of period3.5  8.3  
CASH AND CASH EQUIVALENTS, end of period$613.2  $9.6  




See Note 11 "Supplemental Cash Flow Information" for further details
See accompanying Notes to Condensed Consolidated Financial Statements
9

Table of Contents
ASBURY AUTOMOTIVE GROUP, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
We are one of the largest automotive retailers in the United States. As of June 30, 2020, we owned and operated 102 new vehicle franchises (83 dealership locations) representing 31 automobile brands and 24 collision repair centers in 16 metropolitan markets within nine states. Our stores offer an extensive range of automotive products and services, including new and used vehicles; parts and service, which includes repair and maintenance services, replacement parts and collision repair services; and finance and insurance products. As of June 30, 2020, our new vehicle revenue brand mix consisted of 44% imports, 33% luxury, and 23% domestic brands.
Our retail network is made up of dealerships operating primarily under the following locally-branded dealership groups:
Coggin dealerships operating primarily in Jacksonville, Fort Pierce and Orlando, Florida;
Courtesy dealerships operating in Tampa, Florida;
Crown dealerships operating in North Carolina, South Carolina and Virginia;
Greenville Automotive dealerships operating in Greenville, South Carolina;
Hare and Estes dealerships operating in the Indianapolis, Indiana area;
McDavid dealerships operating in metropolitan Austin and Dallas, Texas;
Nalley dealerships operating in metropolitan Atlanta, Georgia;
Plaza dealerships operating in metropolitan St. Louis, Missouri; and
Mike Shaw dealerships in the Denver, Colorado area.

On July 6, 2020, the Company, through two of its subsidiaries, entered into an Asset Purchase Agreement (the “Revised Asset Purchase Agreement”) with certain members of the Park Place Dealership group, to acquire substantially all of the assets of, and lease the real property related to, 12 new vehicle dealership franchises, two collision centers and an auto auction comprising the Park Place Dealership group (collectively, the “Revised Transaction”) for a purchase price of approximately $685.0 million of goodwill and approximately $50.0 million for parts, fixed assets, and leaseholds (excluding vehicle inventory), subject to certain adjustments described in the Revised Asset Purchase Agreement. The closing of the Revised Transaction is subject to various customary closing conditions, including approval from the applicable automotive manufacturers. See Note 13 "Subsequent Events" for a description of the Revised Transaction.
Basis of Presentation
The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"), and reflect the consolidated accounts of Asbury Automotive Group, Inc. (the "Company") and our wholly owned subsidiaries. All intercompany transactions have been eliminated in consolidation. If necessary, reclassifications of amounts previously reported have been made to the accompanying Condensed Consolidated Financial Statements in order to conform to current presentation.
In the opinion of management, all adjustments, consisting only of normal, recurring adjustments, considered necessary for a fair statement of the Condensed Consolidated Financial Statements as of June 30, 2020, and for the three and six months ended June 30, 2020 and 2019, have been included, unless otherwise indicated. The results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of the results that may be expected for any other interim period, or any full year period. Our Condensed Consolidated Financial Statements should be read together with our audited Consolidated Financial Statements contained in our Annual Report on Form 10-K for the year ended December 31, 2019.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the periods presented. Actual results could differ materially from these estimates. Estimates and assumptions are reviewed quarterly and the effects of any revisions are reflected in the Consolidated Financial Statements in the period they are determined to be necessary. Significant estimates made in the accompanying Condensed Consolidated Financial Statements include, but are not limited to, those relating to inventory
10

Table of Contents
valuation reserves, variable consideration and constraint considerations related to retro-commission arrangements, reserves for chargebacks against revenue recognized from the sale of finance and insurance products, reserves for insurance programs, certain assumptions related to intangible and long-lived assets, and reserves for certain legal or similar proceedings relating to our business operations.
Contracts-In-Transit
Contracts-in-transit represent receivables from third-party finance companies for the portion of new and used vehicle purchase price financed by customers through sources arranged by us.
Accounts Receivable
The allowance for credit losses is estimated using an annual loss rate approach, by type of receivable, utilizing historical loss rates which have been adjusted for expectations of future economic conditions.
Revenue Recognition
Please refer to Note 2 "Revenue Recognition".
Internal Profit
Revenues and expenses associated with internal work performed by our parts and service departments on new and used vehicle inventory are eliminated in consolidation. The gross profit earned by our parts and service departments for internal work performed is included as a reduction of Parts and Service Cost of Sales in the accompanying Consolidated Statements of Income upon the sale of the vehicle. The costs incurred by our new and used vehicle departments for work performed by our parts and service departments is included in either New Vehicle Cost of Sales or Used Vehicle Cost of Sales in the accompanying Consolidated Statements of Income, depending on the classification of the vehicle serviced. We eliminate the internal profit on vehicles that remain in inventory.
Income Taxes
We use the liability method to account for income taxes. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax basis using currently enacted tax rates.
Share Repurchases
Share repurchases may be made from time-to-time in open market transactions or through privately negotiated transactions under the authorization approved by the Board of Directors. Periodically, the Company may retire repurchased shares of common stock previously held by the Company as treasury stock. In accordance with our accounting policy, we allocate any excess share repurchase price over par value between additional paid-in capital, which is limited to amounts initially recorded for the same issue and retained earnings.
Earnings per Share
Basic earnings per share is computed by dividing net income by the weighted-average common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted-average common shares and common share equivalents outstanding during the period. The Company excluded 79,600 restricted share units, issued under the Asbury Automotive Group, Inc. 2019 Equity and Incentive Compensation Plan, from its computation of diluted earnings per share for the three and six months ended June 30, 2020, because they were anti-dilutive. For all periods presented, there were no adjustments to the numerator necessary to compute diluted earnings per share.
Assets Held for Sale and Liabilities Associated with Assets Held for Sale
Certain amounts have been classified as Assets Held for Sale in the accompanying Condensed Consolidated Balance Sheets. Assets and liabilities classified as held for sale may include assets and liabilities associated with pending dealership disposals, real estate we are actively marketing to sell, and any related mortgage notes payable or other liabilities, if applicable. Classification as held for sale begins on the date that we have met all of the criteria for classification as held for sale.
At the time of classifying assets as held for sale, we compare the carrying value of these assets to estimates of fair value to assess for impairment. We compare the carrying value to estimates of fair value utilizing the assistance of third-party broker opinions of value and third-party desktop appraisals to assist in our fair value estimates related to real estate properties.
11

Table of Contents
Statements of Cash Flows
Borrowings and repayments of floor plan notes payable to a lender unaffiliated with the manufacturer from which we purchase a particular new vehicle ("Non-Trade") and all floor plan notes payable relating to pre-owned vehicles (together referred to as "Floor Plan Notes Payable—Non-Trade") are classified as financing activities in the accompanying Condensed Consolidated Statements of Cash Flows, with borrowings reflected separately from repayments. The net change in floor plan notes payable to a lender affiliated with the manufacturer from which we purchase a particular new vehicle (collectively referred to as "Floor Plan Notes Payable—Trade") is classified as an operating activity in the accompanying Condensed Consolidated Statements of Cash Flows. Borrowings of floor plan notes payable associated with inventory acquired in connection with all acquisitions and repayments made in connection with all divestitures are classified as financing activities in the accompanying Condensed Consolidated Statement of Cash Flows. Cash flows related to floor plan notes payable included in operating activities differ from cash flows related to floor plan notes payable included in financing activities only to the extent that the former are payable to a lender affiliated with the manufacturer from which we purchased the related inventory, while the latter are payable to a lender not affiliated with the manufacturer from which we purchased the related inventory.
Loaner vehicles account for a significant portion of Other current assets. We acquire loaner vehicles either with available cash or through borrowing from either our manufacturer affiliated lenders or through our senior secured credit agreement with Bank of America, as administrative agent, and the other agents and lenders party thereto (as amended, the "2019 Senior Credit Facility"). Loaner vehicles are initially used by our service department for a short period of time (typically six to twelve months) before we seek to sell them. Therefore, we classify the acquisition of loaner vehicles in Other current assets and the borrowings and repayments of loaner vehicle notes payable in Accounts payable and accrued liabilities in the accompanying Condensed Consolidated Statements of Cash Flows. Loaner vehicles are depreciated over the service period to their estimated value. At the end of the loaner service period, loaner vehicles are transferred from Other current assets to used vehicle inventory. These transfers are reflected as non-cash transfers between Other current assets and Inventories in the accompanying Condensed Consolidated Statements of Cash Flows.
Recent Accounting Pronouncements
Effective January 1, 2020, the Company adopted Financial Accounting Standard Board Accounting Standards Update 2016-13, Measurement of Credit Losses on Financial Instruments, which changed the way entities assess the impairment of its financial instruments based on its estimate of expected credit losses versus the current incurred loss model. The adoption of this standard did not have a material impact on our condensed consolidated financial statements.
2. REVENUE RECOGNITION
The Company satisfies performance obligations either over time or at a point in time. Revenue is recognized at the time the related performance obligation is satisfied by transferring a promised good or performing a service to a customer. Sales and other taxes we collect concurrent with revenue-producing activities are excluded from revenue.
Disaggregation of Revenue
The following table summarizes revenue from contracts with customers for the three and six months ended June 30, 2020 and 2019:
For the Three Months Ended June 30,
20202019
(In millions)
Revenue:
   New vehicle$761.8  $