UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
February 24, 2005
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Asbury Automotive Group, Inc.
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(Exact name of registrant as specified in its charter)
Delaware
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(State or other jurisdiction of incorporation)
5511 01-0609375
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(Commission File Number) (IRS Employer Identification No.)
622 Third Avenue, 37th Floor, New York, NY 10017
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(Address of principal executive offices) (Zip Code)
(212) 885-2500
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(Registrant's telephone number, including area code)
None
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(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] 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))
Item 2.02 Results of Operations and Financial Conditions.
The registrant issued a press release on February 24, 2005 announcing
its financial results for the fourth quarter and year ended December 31, 2004,
which press release is attached hereto as Exhibit 99.1 and is incorporated
herein by reference.
Item 7.01 Regulation FD Disclosure.
The registrant hereby furnishes the press release identified under
Item 2.02 and attached hereto as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits.
(c) Exhibits.
Exhibit No. Description
99.1 Press Release dated February 24, 2005.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ASBURY AUTOMOTIVE GROUP, INC.
Date: February 24, 2005 By: /s/ Kenneth B. Gilman
-------------------------------------
Name: Kenneth B. Gilman
Title: President and Chief Executive Officer
EXHIBIT INDEX
Exhibit No. Description
99.1 Press Release dated February 24, 2005.
Investors May Contact:
Stacey Yonkus
Director, Investor Relations
(212) 885-2512
investor@asburyauto.com
Reporters May Contact:
David Shein
RF|Binder Partners
(212) 994-7514
David.Shein@RFBinder.com
Asbury Automotive Group Reports
Fourth Quarter and 2004 Financial Results
-- Fourth Quarter Same-Store Retail Revenue Grew 13%;
Same-Store Retail Gross Profit Increased 15% --
-- Full Year 2004 Total Revenue Increased 16% and Gross Profit Rose 14% --
New York, NY, Feb. 24, 2005 - Asbury Automotive Group, Inc. (NYSE: ABG), one of
the largest automotive retail and service companies in the U.S., today reported
financial results for the fourth quarter and year ended December 31, 2004.
Net income from continuing operations for the fourth quarter was $13.8 million,
or $0.42 per diluted share. For the fourth quarter of 2003, the Company reported
a net loss from continuing operations of $19.7 million, or $0.60 per diluted
share, which includes certain items disclosed in the attached financial tables.
Excluding those items, net income from continuing operations for the fourth
quarter of 2004 was up 25 percent when compared to $11.0 million, or $0.34 per
diluted share, in the prior year period.
The Company noted that it achieved double-digit same-store gross profit
increases for the quarter in all four components of its business model - new
vehicles; used vehicles; parts and service; and finance and insurance. The
Company cited a favorable retail market environment in all its geographic
regions plus a recovery in its Florida markets, following the previous quarter's
hurricanes, as positively impacting the quarter.
Financial highlights for the fourth quarter of 2004, as compared to the
corresponding prior year period, included:
o Total revenue for the quarter was approximately $1.4 billion, up 23
percent. Total gross profit was $214.0 million, a 23 percent increase.
Excluding results at the Company's two Florida platforms, total revenue and
gross profit were both up 23 percent.
o Same-store retail revenue (excluding fleet and wholesale business)
increased 13 percent, while same-store retail gross profit rose 15 percent.
Excluding results in Florida, same-store retail revenue and gross profit
were up 9 percent and 11 percent, respectively.
o New vehicle retail revenue rose 22 percent (12 percent same-store), and
unit sales increased 19 percent (8 percent same-store). New vehicle retail
gross profit increased 23 percent (12 percent same-store). Excluding
results in Florida, new vehicle same-store retail revenue and gross profit
were up 6 percent and 3 percent, respectively.
o Used vehicle retail revenue increased 25 percent (19 percent same-store),
and unit sales rose 19 percent (13 percent same-store). Used vehicle retail
gross profit increased 26 percent (20 percent same-store). Excluding
results in Florida, used vehicle same-store retail revenue and gross profit
were up 19 percent and 27 percent, respectively.
o Parts and service revenue and gross profit both increased 20 percent (12
percent and 13 percent same-store, respectively). Excluding results in
Florida, parts and service same-store revenue and gross profit were both up
10 percent.
o Net finance and insurance (F&I) revenue rose 29 percent (20 percent
same-store). F&I per vehicle retailed (PVR) increased 8 percent to $902,
and platform F&I PVR rose 10 percent to $875. Excluding results in Florida,
net F&I same-store revenue increased 17 percent, while F&I PVR increased 10
percent and platform F&I PVR rose 13 percent.
o As a percentage of gross profit, selling, general and administrative (SG&A)
expenses for the quarter were 80.0 percent, matching the year-earlier
level:
- On a same-store basis, the ratio declined approximately 120 basis
points, as expense ratios improved at most platforms, particularly in
Florida.
- Excluding a 2004 sale-leaseback transaction that impacted the quarter
(resulting in increased rent expense while reducing interest and
depreciation expense), as a percent of gross profit, SG&A was down 100
basis points from the prior year period.
For the full year, Asbury's net income from continuing operations was $52.7
million, or $1.61 per diluted share, compared with $18.5 million, or $0.57 per
diluted share, in 2003. Excluding the items highlighted in the attached
financial tables, net income from continuing operations in 2003 was $49.2
million, or $1.50 per diluted share. Total revenue for 2004 was approximately
$5.3 billion, up 16 percent compared to the prior year. Total gross profit was
$813.7 million, a 14 percent increase from the prior year. Same-store retail
revenue for the year increased 5 percent, while same-store retail gross profit
increased 4 percent.
President and CEO, Kenneth B. Gilman, said, "Our business model turned in a
strong, balanced performance in the fourth quarter, and for 2004 as a whole.
While the services side of the business generated solid results all year, we
were able to capitalize late in the year on the improved industry environment in
terms of new and used vehicle sales. We also benefited in the fourth quarter
from a bounce in our Florida markets. Of particular note, however, was the
strength of our non-Florida operations and the positive impact they had on the
quarter. Our continued focus on the basics of automotive retailing, along with a
disciplined approach to expenses, allowed us to retain a substantial portion of
our improved gross profit. In addition, several manufacturer-sponsored dealer
incentive programs enhanced our profitability during the quarter."
J. Gordon Smith, Senior Vice President and CFO, said, "Our flat overall SG&A
expense ratio for the fourth quarter includes the impact of start-up costs
associated with new and acquired dealerships, as well as incremental expense
associated with a large sale-leaseback transaction earlier in the year.
Excluding the impact of our start-up operations and the sale-leaseback, our SG&A
expense ratio was down 205 basis points in the fourth quarter. We expect to
achieve additional savings in 2005, particularly as we implement the recently
announced changes in our dealership management structure."
Last month, as previously announced, Asbury reorganized its nine platforms into
principally four regions: Florida; West (California, Texas & Oregon);
Mid-Atlantic (North Carolina, South Carolina & Virginia); and South (Georgia &
Arkansas); with Mississippi and Missouri remaining as stand-alone platforms.
Mr. Smith continued, "While the underlying goal of this new structure is to
improve productivity and management effectiveness, the financial benefit from
the change will be tangible. We expect to incur a charge in the first quarter of
2005 of approximately $4 million for severance and other one-time costs,
including the settlement of several multi-year contracts. Prospectively, we
expect to realize annual savings of $4 to $5 million, reducing our SG&A expense
ratio, as a percent of gross profit, by approximately 50 to 60 basis points.
Specifically, we expect to realize approximately $3 million of these savings
this year and the full effect in 2006. We anticipate that adopting this new
structure will reduce earnings by approximately $0.02 to $0.04 per share this
year and increase earnings by approximately $0.10 per share next year."
During 2004, Asbury acquired seven dealerships with projected annual revenues of
approximately $350 million. The acquired dealerships include Mercedes-Benz,
Honda, Nissan (2), Dodge and Hyundai (2) franchises, and five of the seven are
in California. The Company's current objective in 2005 will again be to add
between $300 million and $500 million in annualized revenues through
acquisitions.
Mr. Gilman concluded, "Looking ahead, we remain well positioned to generate
organic growth with our high-quality brand mix, strategic focus on higher-margin
service businesses, and disciplined approach to expense management. In addition,
we remain committed to our acquisitions approach - targeting specific brands in
key geographical markets. Our continued focus on the fundamentals of the
business, along with further efforts to seek additional operating efficiencies,
should translate into added value for our shareholders."
Commenting on guidance for 2005, the Company noted that it remains comfortable
with estimates for earnings per share from continuing operations between $1.70
and $1.78. This range does not reflect the potential net cost resulting from the
regional reorganization. Additionally, not included in the above guidance is the
anticipated third quarter adoption of Statement of Financial Accounting Standard
123(R). Based on existing stock options outstanding, the Company currently
estimates that its stock option compensation expense will reduce 2005 earnings
per share by approximately $0.08.
Asbury will host a conference call to discuss its fourth quarter results this
morning at 11:00 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 800-289-0507; international callers, please dial
913-981-5540. No access code is required. A conference call replay will be
available approximately two hours following the call for 14 days and can be
accessed by calling 888-203-1112 (domestic), or 719-457-0820 (international);
access code 9299141.
About Asbury Automotive Group
Asbury Automotive Group, Inc., headquartered in New York City, is one of the
largest automobile retailers in the U.S., with 2004 revenue of approximately
$5.3 billion. Built through a combination of organic growth and a series of
strategic acquisitions, the Company currently operates 96 retail auto stores,
encompassing 132 franchises for the sale and servicing of 33 different brands of
American, European and Asian automobiles. Asbury believes that its product mix
contains a higher proportion of the more desirable luxury and mid-line import
brands than most public automotive retailers. The Company offers customers an
extensive range of automotive products and services, including new and used
vehicle sales and related financing and insurance, vehicle maintenance and
repair services, replacement parts and service contracts.
Forward-Looking Statements
This press release contains "forward-looking statements" as that term is defined
in the Private Securities Litigation Reform Act of 1995. The forward-looking
statements include statements relating to goals, plans, projections and guidance
regarding the Company's financial position, results of operations, market
position, product development, pending and potential future acquisitions and
business strategy. These statements are based on management's current
expectations and involve significant risks and uncertainties that may cause
results to differ materially from those set forth in the statements. These risks
and uncertainties include, among other things, market factors, the Company's
relationships with vehicle manufacturers and other suppliers which could cause,
among other things, acquisitions under contract or letters of intent to fail,
risks associated with the Company's substantial indebtedness, risks related to
pending and potential future acquisitions, risks related to competition in the
automotive retail and service industries, general economic conditions both
nationally and locally and governmental regulations and legislation. There can
be no guarantees that the Company's plans for future operations will be
successfully implemented or that they will prove to be commercially successful.
These and other risk factors are discussed in the Company's annual report on
Form 10-K and in its other filings with the Securities and Exchange Commission.
We undertake no obligation to publicly update any forward-looking statement,
whether as a result of new information, future events or otherwise.
Asbury Automotive Group, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
For the Three Months Ended For the Year Ended
December 31, December 31,
-------------------------- --------------------------
2004 2003 2004 2003
----------- ----------- ----------- -----------
REVENUES:
New vehicle .............................................. $ 858,210 $ 696,980 $ 3,261,709 $ 2,786,744
Used vehicle ............................................. 324,957 259,211 1,286,361 1,142,824
Parts, service and collision repair ...................... 159,253 133,217 605,315 517,904
Finance and insurance, net ............................... 37,766 29,387 147,750 125,041
----------- ----------- ----------- -----------
Total revenues ...................................... 1,380,186 1,118,795 5,301,135 4,572,513
COST OF SALES
New vehicle .............................................. 793,471 644,208 3,023,726 2,577,577
Used vehicle ............................................. 297,195 237,613 1,176,255 1,040,563
Parts, service and collision repair ...................... 75,485 63,451 287,413 242,322
----------- ----------- ----------- -----------
Total cost of sales ................................. 1,166,151 945,272 4,487,394 3,860,462
----------- ----------- ----------- -----------
GROSS PROFIT ................................................. 214,035 173,523 813,741 712,051
OPERATING EXPENSES:
Selling, general and administrative ...................... 171,271 138,704 650,152 557,478
Depreciation and amortization ............................ 5,044 5,118 20,422 19,686
Impairment of goodwill ................................... -- 37,930 -- 37,930
----------- ----------- ----------- -----------
Income (loss) from operations ....................... 37,720 (8,229) 143,167 96,957
OTHER INCOME (EXPENSE):
Floor plan interest expense .............................. (6,224) (4,029) (21,248) (16,624)
Other interest expense ................................... (10,070) (10,199) (39,256) (40,228)
Interest income .......................................... 212 45 822 480
Other income (expense) ................................... 495 (1,196) 623 (1,626)
----------- ----------- ----------- -----------
Total other expense, net ............................ (15,587) (15,379) (59,059) (57,998)
----------- ----------- ----------- -----------
Income (loss) from continuing operations
before income taxes ............................... 22,133 (23,608) 84,108 38,959
INCOME TAX EXPENSE ........................................... 8,300 (3,925) 31,364 20,468
----------- ----------- ----------- -----------
Income (loss) from continuing operations ............ 13,833 (19,683) 52,744 18,491
DISCONTINUED OPERATIONS, net of tax .......................... (988) (744) (2,671) (3,304)
----------- ----------- ----------- -----------
Net income (loss) ................................... $ 12,845 $ (20,427) $ 50,073 $ 15,187
=========== =========== =========== ===========
BASIC EARNINGS PER COMMON SHARE:
Continuing operations .................................... $ 0.42 $ (0.61) $ 1.62 $ 0.57
Discontinued operations .................................. (0.03) (0.02) (0.08) (0.10)
----------- ----------- ----------- -----------
Net income (loss) ........................................ $ 0.39 $ (0.63) $ 1.54 $ 0.47
=========== =========== =========== ===========
DILUTED EARNINGS PER COMMON SHARE:
Continuing operations .................................... $ 0.42 $ (0.60) $ 1.61 $ 0.57
Discontinued operations .................................. (0.03) (0.02) (0.08) (0.11)
----------- ----------- ----------- -----------
Net income (loss) ........................................ $ 0.39 $ (0.62) $ 1.53 $ 0.46
=========== =========== =========== ===========
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic .................................................... 32,561 32,431 32,502 32,648
=========== =========== =========== ===========
Diluted .................................................. 32,672 32,686 32,674 32,715
=========== =========== =========== ===========
Asbury Automotive Group, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
For the Three Months Ended For the Three Months Ended
December 31, 2004 December 31, 2003
----------------------------------------- -----------------------------------------
Non-Florida Florida Non-Florida Florida
Operations Operations* Total Operations Operations* Total
----------- ----------- ----------- ----------- ----------- -----------
REVENUES:
New vehicle ........................... $ 594,316 $ 263,894 $ 858,210 $ 485,330 $ 211,650 $ 696,980
Used vehicle .......................... 213,328 111,629 324,957 169,595 89,616 259,211
Parts, service and collision repair ... 118,191 41,062 159,253 98,506 34,711 133,217
Finance and insurance, net ............ 24,364 13,402 37,766 18,652 10,735 29,387
----------- ----------- ----------- ----------- ----------- -----------
Total revenues .................. 950,199 429,987 1,380,186 772,083 346,712 1,118,795
COST OF SALES
New vehicle ........................... 550,730 242,741 793,471 448,496 195,712 644,208
Used vehicle .......................... 196,659 100,536 297,195 157,867 79,746 237,613
Parts, service and collision repair ... 57,725 17,760 75,485 47,993 15,458 63,451
----------- ----------- ----------- ----------- ----------- -----------
Total cost of sales ............. 805,114 361,037 1,166,151 654,356 290,916 945,272
----------- ----------- ----------- ----------- ----------- -----------
GROSS PROFIT ............................. 145,085 68,950 214,035 117,727 55,796 173,523
OPERATING EXPENSES:
Selling, general and administrative ... 121,718 49,553 171,271 97,557 41,147 138,704
Depreciation and amortization ......... 4,029 1,015 5,044 3,780 1,338 5,118
Impairment of goodwill ................ -- -- -- 37,930 -- 37,930
----------- ----------- ----------- ----------- ----------- -----------
Income (loss) from operations ... 19,338 18,382 37,720 (21,540) 13,311 (8,229)
OTHER INCOME (EXPENSE):
Floor plan interest expense ........... (4,580) (1,644) (6,224) (3,017) (1,012) (4,029)
Other interest expense ................ (9,878) (192) (10,070) (9,511) (688) (10,199)
Interest income ....................... 180 32 212 61 (16) 45
Other income (expense) ................ 459 36 495 (2,509) 1,313 (1,196)
----------- ----------- ----------- ----------- ----------- -----------
Total other expense, net ........ (13,819) (1,768) (15,587) (14,976) (403) (15,379)
----------- ----------- ----------- ----------- ----------- -----------
Income (loss) from continuing
operations before income taxes 5,519 16,614 22,133 (36,516) 12,908 (23,608)
INCOME TAX EXPENSE ....................... 1,799 6,501 8,300 (7,719) 3,794 (3,925)
----------- ----------- ----------- ----------- ----------- -----------
Income (loss) from continuing
operations ................... 3,720 10,113 13,833 (28,797) 9,114 (19,683)
DISCONTINUED OPERATIONS, net of tax ...... (1,141) 153 (988) (1,074) 330 (744)
----------- ----------- ----------- ----------- ----------- -----------
Net income (loss) ............... $ 2,579 $ 10,266 $ 12,845 $ (29,871) $ 9,444 $ (20,427)
=========== =========== =========== =========== =========== ===========
BASIC EARNINGS PER COMMON SHARE:
Continuing operations ................. $ 0.11 $ 0.31 $ 0.42 $ (0.89) $ 0.28 $ (0.61)
Discontinued operations ............... (0.03) -- (0.03) (0.03) 0.01 (0.02)
----------- ----------- ----------- ----------- ----------- -----------
Net income (loss) ............... $ 0.08 $ 0.31 $ 0.39 $ (0.92) $ 0.29 $ (0.63)
=========== =========== =========== =========== =========== ===========
DILUTED EARNINGS PER COMMON SHARE:
Continuing operations ................. $ 0.11 $ 0.31 $ 0.42 $ (0.88) $ 0.28 $ (0.60)
Discontinued operations ............... (0.03) -- (0.03) (0.03) 0.01 (0.02)
----------- ----------- ----------- ----------- ----------- -----------
Net income (loss) ............... $ 0.08 $ 0.31 $ 0.39 $ (0.91) $ 0.29 $ (0.62)
=========== =========== =========== =========== =========== ===========
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic ................................. 32,561 32,561 32,561 32,431 32,431 32,431
=========== =========== =========== =========== =========== ===========
Diluted ............................... 32,672 32,672 32,672 32,686 32,686 32,686
=========== =========== =========== =========== =========== ===========
* The results of the Company's Florida operations do not include an allocation
of corporate overhead or interest expense related to the Company's senior
indebtedness. All such amounts are included in the results of the Company's
non-Florida operations.
Asbury Automotive Group, Inc.
Selected Data
(Dollars in thousands except per share data)
(Unaudited)
As Reported for the Same Store for the
Three Months Ended December 31, Three Months Ended December 31,
--------------------------------------- -----------------------------------------
2004 2003 2004 2003
---------- ---------- ---------- ----------
RETAIL VEHICLES SOLD:
New units ............................... 26,861 64.2% 22,590 64.2% 24,348 63.1% 22,590 64.2%
Used units .............................. 15,002 35.8% 12,620 35.8% 14,215 36.9% 12,620 35.8%
---------- ------ ---------- ------ ---------- ------ ---------- ------
Total units ........................ 41,863 100.0% 35,210 100.0% 38,563 100.0% 35,210 100.0%
========== ====== ========== ====== ========== ====== ========== ======
REVENUE:
New retail .............................. $ 834,940 60.5% $ 686,876 61.4% $ 767,139 60.0% $ 686,876 61.4%
Used retail ............................. 242,101 17.6% 193,144 17.3% 229,274 18.0% 193,144 17.3%
Parts, service and collision repair ..... 159,253 11.5% 133,217 11.9% 149,628 11.7% 133,217 11.9%
Finance and insurance, net .............. 37,766 2.7% 29,387 2.6% 35,157 2.8% 29,387 2.6%
---------- ---------- ---------- ----------
Total retail revenue ............... 1,274,060 1,042,624 1,181,198 1,042,624
Fleet ................................... 23,270 1.7% 10,104 0.9% 20,805 1.6% 10,104 0.9%
Wholesale ............................... 82,856 6.0% 66,067 5.9% 75,685 5.9% 66,067 5.9%
---------- ------ ---------- ------ ---------- ------ ---------- ------
Total revenue ...................... $1,380,186 100.0% $1,118,795 100.0% $1,277,688 100.0% $1,118,795 100.0%
========== ====== ========== ====== ========== ====== ========== ======
GROSS PROFIT
New retail .............................. $ 57,369 26.8% $ 46,817 27.0% $ 52,375 26.2% $ 46,817 27.0%
Used retail ............................. 28,384 13.3% 22,585 13.0% 27,012 13.5% 22,585 13.0%
Parts, service and collision repair ..... 83,768 39.2% 69,766 40.2% 78,726 39.4% 69,766 40.2%
Finance and insurance, net .............. 37,766 17.6% 29,387 17.0% 35,157 17.6% 29,387 17.0%
Floor plan interest credits ............. 6,717 3.1% 5,585 3.2% 6,273 3.2% 5,585 3.2%
---------- ---------- ---------- ----------
Total retail gross profit .......... 214,004 174,140 199,543 174,140
Fleet ................................... 653 0.3% 370 0.2% 633 0.3% 370 0.2%
Wholesale ............................... (622) (0.3)% (987) (0.6)% (483) (0.2)% (987) (0.6)%
---------- ------ ---------- ------ ---------- ------ ---------- ------
Total gross profit ................. $ 214,035 100.0% $ 173,523 100.0% $ 199,693 100.0% $ 173,523 100.0%
========== ====== ========== ====== ========== ====== ========== ======
Sales, general and administrative expense $ 171,271 $ 138,704 $ 157,180 $ 138,704
SG&A as a percent of gross profit ....... 80.0% 79.9% 78.7% 79.9%
GROSS PROFIT PER VEHICLE RETAILED:
New retail (including floor plan
interest credits) ..................... $ 2,386 $ 2,320 $ 2,409 $ 2,320
Used retail ............................. 1,892 1,790 1,900 1,790
Finance and insurance, net .............. 902 835 912 835
Platform finance and insurance, net ..... 875 795 882 795
Asbury Automotive Group, Inc.
Selected Data
(Dollars in thousands except per share data)
(Unaudited)
As Reported for the Same Store for the
Year Ended December 31, Year Ended December 31,
--------------------------------------- -----------------------------------------
2004 2003 2004 2003
---------- ---------- ---------- ----------
RETAIL VEHICLES SOLD:
New units .............................. 106,298 63.4% 94,527 62.3% 95,802 62.8% 94,527 62.3%
Used units ............................. 61,311 36.6% 57,090 37.7% 56,789 37.2% 57,090 37.7%
---------- ------ ---------- ------ ---------- ------ ---------- ------
Total units 167,609 100.0% 151,617 100.0% 152,591 100.0% 151,617 100.0%
========== ====== ========== ====== ========== ====== ========== ======
REVENUE:
New retail ............................. $3,192,575 60.3% $2,742,637 60.0% $2,896,385 60.0% $2,742,637 60.0%
Used retail ............................ 959,632 18.0% 872,071 19.1% 878,922 18.1% 872,071 19.1%
Parts, service and collision repair .... 605,315 11.4% 517,904 11.2% 553,174 11.5% 517,904 11.2%
Finance and insurance, net ............. 147,750 2.8% 125,041 2.8% 136,930 2.9% 125,041 2.8%
---------- ---------- ---------- ----------
Total retail revenue .............. 4,905,272 4,257,653 4,465,411 4,257,653
Fleet .................................. 69,134 1.3% 44,107 1.0% 66,063 1.4% 44,107 1.0%
Wholesale .............................. 326,729 6.2% 270,753 5.9% 295,462 6.1% 270,753 5.9%
---------- ------ ---------- ------ ---------- ------ ---------- ------
Total revenue ..................... $5,301,135 100.0% $4,572,513 100.0% $4,826,936 100.0% $4,572,513 100.0%
========== ====== ========== ====== ========== ====== ========== ======
GROSS PROFIT
New retail ............................. $ 210,282 25.9% $ 185,860 26.1% $ 187,323 25.2% $ 185,860 26.1%
Used retail ............................ 113,281 13.8% 103,885 14.6% 104,654 14.0% 103,885 14.6%
Parts, service and collision repair .... 317,902 39.1% 275,582 38.7% 291,656 39.3% 275,582 38.7%
Finance and insurance, net ............. 147,750 18.2% 125,041 17.5% 136,930 18.4% 125,041 17.5%
Floor plan interest credits ............ 25,429 3.1% 22,091 3.1% 23,765 3.2% 22,091 3.1%
---------- ---------- ---------- ----------
Total retail gross profit ......... 814,644 712,459 744,328 712,459
Fleet .................................. 2,272 0.3% 1,216 0.2% 2,249 0.3% 1,216 0.2%
Wholesale .............................. (3,175) (0.4)% (1,624) (0.2)% (2,706) (0.4)% (1,624) (0.2)%
---------- ------ ---------- ------ ---------- ------ ---------- ------
Total gross profit ................ $ 813,741 100.0% $ 712,051 100.0% $ 743,871 100.0% $ 712,051 100.0%
========== ====== ========== ====== ========== ====== ========== ======
Sales, general and administrative
expense .............................. $ 650,152 $ 557,478 $ 589,567 $ 557,478
SG&A as a percent of gross profit ...... 79.9% 78.3% 79.3% 78.3%
GROSS PROFIT PER VEHICLE RETAILED:
New retail (including floor plan
interest credits) .................... $ 2,217 $ 2,200 $ 2,203 $ 2,200
Used retail ............................ 1,848 1,820 1,843 1,820
Finance and insurance, net ............. 882 825 897 825
Platform finance and insurance, net .... 848 807 860 807
Asbury Automotive Group, Inc.
Selected Data
(Dollars in thousands except per share data)
(Unaudited)
As Reported For the Three Months Ended December 31, 2004
------------------------------------------------------------------------
Non-Florida Florida
Operations Operations* Total
----------- ----------- -----------
RETAIL VEHICLES SOLD:
New units ....................................... 17,955 65.9% 8,906 60.8% 26,861 64.2%
Used units ...................................... 9,272 34.1% 5,730 39.2% 15,002 35.8%
----------- ------ ----------- ------ ----------- ------
Total units ................................. 27,227 100.0% 14,636 100.0% 41,863 100.0%
=========== ====== =========== ====== =========== ======
REVENUE:
New retail ...................................... $ 578,039 60.8% $ 256,901 59.7% $ 834,940 60.5%
Used retail ..................................... 158,458 16.7% 83,643 19.5% 242,101 17.6%
Parts, service and collision repair ............. 118,191 12.4% 41,062 9.6% 159,253 11.5%
Finance and insurance, net ...................... 24,364 2.6% 13,402 3.1% 37,766 2.7%
----------- ----------- -----------
Total retail revenue ........................ 879,052 395,008 1,247,060
Fleet ........................................... 16,277 1.7% 6,993 1.6% 23,270 1.7%
Wholesale ....................................... 54,870 5.8% 27,986 6.5% 82,856 6.0%
----------- ------ ----------- ------ ----------- ------
Total revenue ............................... $ 950,199 100.0% $ 429,987 100.0% $ 1,380,186 100.0%
=========== ====== =========== ====== =========== ======
GROSS PROFIT
New retail ...................................... $ 39,052 26.9% $ 18,317 26.6% $ 57,369 26.8%
Used retail ..................................... 17,358 12.0% 11,026 16.0% 28,384 13.3%
Parts, service and collision repair ............. 60,466 41.7% 23,302 33.8% 83,768 39.2%
Finance and insurance, net ...................... 24,364 16.8% 13,402 19.4% 37,766 17.6%
Floor plan interest credits ..................... 4,407 3.0% 2,310 3.3% 6,717 3.1%
----------- ----------- -----------
Total retail gross profit ................... 145,647 68,357 214,004
Fleet ........................................... 127 0.1% 526 0.8% 653 0.3%
Wholesale ....................................... (689) (0.5)% 67 0.1% (622) (0.3)%
----------- ------ ----------- ------ ----------- ------
Total gross profit .......................... $ 145,085 100.0% $ 68,950 100.0% $ 214,035 100.0%
=========== ====== =========== ====== =========== ======
Sales, general and administrative expense .......... $ 121,718 $ 49,553 $ 171,271
SG&A as a percent of gross profit .................. 83.9% 71.9% 80.0%
GROSS PROFIT PER VEHICLE RETAILED:
New retail (including floor plan interest credits) . $ 2,420 $ 2,316 $ 2,386
Used retail ........................................ 1,872 1,924 1,892
Finance and insurance, net ......................... 895 916 902
Platform finance and insurance, net ................ 853 916 875
* The results of the Company's Florida operations do not include an allocation
of corporate overhead or interest expense related to the Company's senior
indebtedness. All such amounts are included in the results of the Company's
non-Florida operations.
Asbury Automotive Group, Inc.
Selected Data
(Dollars in thousands except per share data)
(Unaudited)
As Reported For the Three Months Ended December 31, 2003
------------------------------------------------------------------------
Non-Florida Florida
Operations Operations* Total
----------- ----------- -----------
RETAIL VEHICLES SOLD:
New units ..................................... 15,240 67.3% 7,350 58.5% 22,590 64.2 %
Used units .................................... 7,416 32.7% 5,204 41.5% 12,620 35.8%
----------- ------ ----------- ------ ----------- ------
Total units ............................... 22,656 100.0% 12,554 100.0% 35,210 100.0%
=========== ====== =========== ====== =========== ======
REVENUE:
New retail .................................... $ 480,447 62.2% $ 206,429 59.5% $ 686,876 61.4%
Used retail ................................... 122,804 15.9% 70,340 20.3% 193,144 17.3%
Parts, service and collision repair ........... 98,506 12.8% 34,711 10.0% 133,217 11.9%
Finance and insurance, net .................... 18,652 2.4% 10,735 3.1% 29,387 2.6%
----------- ----------- -----------
Total retail revenue ...................... 720,409 322,215 1,042,624
Fleet ......................................... 4,883 0.6% 5,221 1.5% 10,104 0.9%
Wholesale ..................................... 46,791 6.1% 19,276 5.6% 66,067 5.9%
----------- ------ ----------- ------ ----------- ------
Total revenue ............................. $ 772,083 100.0% $ 346,712 100.0% $ 1,118,795 100.0%
=========== ====== =========== ====== =========== ======
GROSS PROFIT
New retail .................................... $ 32,997 28.0% $ 13,820 24.8% $ 46,817 27.0%
Used retail ................................... 12,545 10.7% 10,040 18.0% 22,585 13.0%
Parts, service and collision repair ........... 50,513 42.9% 19,253 34.5% 69,766 40.2%
Finance and insurance, net .................... 18,652 15.8% 10,735 19.2% 29,387 17.0%
Floor plan interest credits ................... 3,756 3.2% 1,829 3.3% 5,585 3.2%
----------- ----------- -----------
Total retail gross profit ................. 118,463 55,677 174,140
Fleet ......................................... 81 0.1% 289 0.5% 370 0.2%
Wholesale ..................................... (817) (0.7)% (170) (0.3)% (987) (0.6)%
----------- ------ ----------- ------ ----------- ------
Total gross profit ........................ $ 117,727 100.0% $ 55,796 100.0% $ 173,523 100.0%
=========== ====== =========== ====== =========== ======
Sales, general and administrative expense ........ $ 97,557 $ 41,147 $ 138,704
SG&A as a percent of gross profit ................ 82.9% 73.7% 79.9%
GROSS PROFIT PER VEHICLE RETAILED:
New retail (including floor plan interest credits) $ 2,412 $ 2,129 $ 2,320
Used retail ...................................... 1,692 1,929 1,790
Finance and insurance, net ....................... 823 855 835
Platform finance and insurance, net .............. 762 855 795
* The results of the Company's Florida operations do not include an allocation
of corporate overhead or interest expense related to the Company's senior
indebtedness. All such amounts are included in the results of the Company's
non-Florida operations.
Asbury Automotive Group, Inc.
Selected Data
(Dollars in thousands except per share data)
(Unaudited)
Same Store for the Three Months Ended December 31, 2004
------------------------------------------------------------------------
Non-Florida Florida
Operations Operations* Total
----------- ----------- -----------
RETAIL VEHICLES SOLD:
New units ................................... 15,442 64.5% 8,906 60.8% 24,348 63.1%
Used units .................................. 8,485 35.5% 5,730 39.2% 14,215 36.9%
----------- ------ ----------- ------ ----------- ------
Total units ............................. 23,927 100.0% 14,636 100.0% 38,563 100.0%
=========== ====== =========== ====== =========== ======
REVENUE:
New retail .................................. $ 510,238 60.2% $ 256,901 59.7% $ 767,139 60.0%
Used retail ................................. 145,631 17.2% 83,643 19.5% 229,274 18.0%
Parts, service and collision repair ......... 108,566 12.8% 41,062 9.6% 149,628 11.7%
Finance and insurance, net .................. 21,755 2.6% 13,402 3.1% 35,157 2.8%
----------- ----------- -----------
Total retail revenue .................... 786,190 395,008 1,181,198
Fleet ....................................... 13,812 1.6% 6,993 1.6% 20,805 1.6%
Wholesale ................................... 47,699 5.6% 27,986 6.5% 75,685 5.9%
----------- ------ ----------- ------ ----------- ------
Total revenue ........................... $ 847,701 100.0% $ 429,987 100.0% $ 1,277,688 100.0%
=========== ====== =========== ====== =========== ======
GROSS PROFIT
New retail .................................. $ 34,058 26.1% $ 18,317 26.6% $ 52,375 26.2%
Used retail ................................. 15,986 12.2% 11,026 16.0% 27,012 13.5%
Parts, service and collision repair ......... 55,424 42.4% 23,302 33.8% 78,726 39.4%
Finance and insurance, net .................. 21,755 16.6% 13,402 19.4% 35,157 17.6%
Floor plan interest credits ................. 3,963 3.0% 2,310 3.3% 6,273 3.2%
----------- ----------- -----------
Total retail gross profit ............... 131,186 68,357 199,543
Fleet ....................................... 107 0.1% 526 0.8% 633 0.3%
Wholesale ................................... (550) (0.4)% 67 0.1% (483) (0.2)%
----------- ------ ----------- ------ ----------- ------
Total gross profit ...................... $ 130,743 100.0% $ 68,950 100.0% $ 199,693 100.0%
=========== ====== =========== ====== =========== ======
Sales, general and administrative expense... $ 107,627 $ 49,553 $ 157,180
SG&A as a percent of gross profit ........... 82.3% 71.9% 78.7%
GROSS PROFIT PER VEHICLE RETAILED:
New retail (including floor plan interest
credits) ..................................... $ 2,462 $ 2,316 $ 2,409
Used retail .................................... 1,884 1,924 1,900
Finance and insurance, net ..................... 909 916 912
Platform finance and insurance, net ............ 862 916 882
* The results of the Company's Florida operations do not include an allocation
of corporate overhead or interest expense related to the Company's senior
indebtedness. All such amounts are included in the results of the Company's
non-Florida operations.
Asbury Automotive Group, Inc.
Selected Data
(Dollars in thousands except per share data)
(Unaudited)
Same Store for the Three Months Ended December 31, 2003
------------------------------------------------------------------------
Non-Florida Florida
Operations Operations* Total
----------- ----------- -----------
RETAIL VEHICLES SOLD:
New units .................................. 15,240 67.3% 7,350 58.5% 22,590 64.2%
Used units ................................. 7,416 32.7% 5,204 41.5% 12,620 35.8%
----------- ------ ----------- ------ ----------- ------
Total units ............................ 22,656 100.0% 12,554 100.0% 35,210 100.0%
=========== ====== =========== ====== =========== ======
REVENUE:
New retail ................................. $ 480,447 62.2% $ 206,429 59.5% $ 686,876 61.4%
Used retail ................................ 122,804 15.9% 70,340 20.3% 193,144 17.3%
Parts, service and collision repair ........ 98,506 12.8% 34,711 10.0% 133,217 11.9%
Finance and insurance, net ................. 18,652 2.4% 10,735 3.1% 29,387 2.6%
----------- ----------- -----------
Total retail revenue ................... 720,409 322,215 1,042,624
Fleet ...................................... 4,883 0.6% 5,221 1.5% 10,104 0.9%
Wholesale .................................. 46,791 6.1% 19,276 5.6% 66,067 5.9%
----------- ------ ----------- ------ ----------- ------
Total revenue .......................... $ 772,083 100.0% $ 346,712 100.0% $ 1,118,795 100.0%
=========== ====== =========== ====== =========== ======
GROSS PROFIT
New retail ................................. $ 32,997 28.0% $ 13,820 24.8% $ 46,817 27.0%
Used retail ................................ 12,545 10.7% 10,040 18.0% 22,585 13.0%
Parts, service and collision repair ........ 50,513 42.9% 19,253 34.5% 69,766 40.2%
Finance and insurance, net ................. 18,652 15.8% 10,735 19.2% 29,387 17.0%
Floor plan interest credits ................ 3,756 3.2% 1,829 3.3% 5,585 3.2%
----------- ----------- -----------
Total retail gross profit .............. 118,463 55,677 174,140
Fleet ...................................... 81 0.1% 289 0.5% 370 0.2%
Wholesale .................................. (817) (0.7)% (170) (0.3)% (987) (0.6)%
----------- ------ ----------- ------ ----------- ------
Total gross profit ..................... $ 117,727 100.0% $ 55,796 100.0% $ 173,523 100.0%
=========== ====== =========== ====== =========== ======
Sales, general and administrative expense .. $ 97,557 $ 41,147 $ 138,704
SG&A as a percent of gross profit .......... 82.9% 73.7% 79.9%
GROSS PROFIT PER VEHICLE RETAILED:
New retail (including floor plan interest
credits) .................................... $ 2,412 $ 2,129 $ 2,320
Used retail ................................... 1,692 1,929 1,790
Finance and insurance, net .................... 823 855 835
Platform finance and insurance, net ........... 762 855 795
* The results of the Company's Florida operations do not include an allocation
of corporate overhead or interest expense related to the Company's senior
indebtedness. All such amounts are included in the results of the Company's
non-Florida operations.
As of As of
December 31, 2004 December 31, 2003
BALANCE SHEET HIGHLIGHTS:
Cash and cash equivalents $ 28,093 $ 106,711
Inventories 761,557 650,397
Total current assets 1,143,506 1,041,542
Floor plan notes payable 650,948 602,167
Total current liabilities 847,510 781,758
CAPITALIZATION:
Long-term debt (including current
portion) $ 529,152 $ 592,378
Stockholders' equity 480,023 433,707
---------- ----------
Total $1,009,175 $1,026,085
========== ==========
ASBURY AUTOMOTIVE GROUP, INC.
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
(In thousands, except vehicle data)
(Unaudited)
The Company evaluates finance and insurance gross profit performance on a
per-vehicle retailed basis by dividing total finance and insurance gross profit
by the number of retail vehicles sold. During 2003, the Company renegotiated a
contract with a third party finance and insurance product provider, which
resulted in the recognition of income that was not attributable to retail
vehicles sold during the year. The Company believes that platform finance and
insurance, which excludes the additional revenue derived from contracts
negotiated by the corporate office, provides a more accurate measure of the
Company's finance and insurance operating performance. The following table
reconciles finance and insurance gross profit to platform finance and insurance
gross profit, and provides necessary components to calculate platform finance
and insurance gross profit per vehicle retailed.
As Reported For the Three Same Store For the Three
Months Ended December 31, Months Ended December 31,
------------------------- -------------------------
2004 2003 2004 2003
--------- --------- --------- ---------
RECONCILIATION OF FINANCE AND INSURANCE GROSS PROFIT
TO PLATFORM FINANCE AND INSURANCE:
Finance and insurance, net ...................... $ 37,766 $ 29,387 $ 35,157 $ 29,387
Less: corporate finance and insurance .......... (1,138) (1,393) (1,138) (1,393)
--------- --------- --------- ---------
Platform finance and insurance, net ........ $ 36,628 $ 27,994 $ 34,019 $ 27,994
========= ========= ========= =========
RETAIL VEHICLES SOLD:
New retail units ............................... 26,861 22,590 24,348 22,590
Used retail units .............................. 15,002 12,620 14,215 12,620
--------- --------- --------- ---------
Total units ............................... 41,863 35,210 38,563 35,210
========= ========= ========= =========
As Reported For the Year Same Store For the Year
Ended December 31, Ended December 31,
------------------------- -------------------------
2004 2003 2004 2003
--------- --------- --------- ---------
RECONCILIATION OF FINANCE AND INSURANCE GROSS PROFIT
TO PLATFORM FINANCE AND INSURANCE:
Finance and insurance, net ...................... $ 147,750 $ 125,041 $ 136,930 $ 125,041
Less: corporate finance and insurance .......... (5,695) (2,693) (5,695) (2,693)
--------- --------- --------- ---------
Platform finance and insurance, net ........ $ 142,055 $ 122,348 $ 131,235 $ 122,348
========= ========= ========= =========
RETAIL VEHICLES SOLD:
New retail units ............................... 106,298 94,527 95,802 94,527
Used retail units .............................. 61,311 57,090 56,789 57,090
--------- --------- --------- ---------
Total units .............................. 167,609 151,617 152,591 151,617
========= ========= ========= =========
The Company's operating income was largely impacted by incremental rent expense
associated with a sale-leaseback transaction that was entered into in the third
quarter of 2004. The Company believes that excluding the incremental rent
expense from the selling, general and administrative expenses for the fourth
quarter of 2004 provides a more meaningful basis to measure the results of the
Company's operations compared to that of the prior year period. A reconciliation
of the Company's adjusted selling, general and administrative expenses is
presented below.
As Reported for the As Reported for the
Three Months Ended Three Months Ended
December 31, 2004 December 31, 2003 Variance
------------------- ------------------- --------
Selling, general and administrative expenses $171,271 $138,704 $32,567
Less: Incremental rent expense associated with sale-
leaseback transaction (2,290) - (2,290)
-------- -------- -------
Adjusted selling, general and administrative expenses $168,981 $138,704 $30,277
======== ======== =======
Same Store Results for Same Store Results for
the Three Months Ended the Three Months Ended
December 31, 2004 December 31, 2003 Variance
---------------------- ----------------------- --------
Selling, general and administrative expenses $157,180 $138,704 $18,476
Less: Incremental rent expense associated with sale-
leaseback transaction (2,290) - (2,290)
-------- -------- -------
Adjusted selling, general and administrative expenses $154,890 $138,704 $16,186
======== ======== =======
The Company defines net income from continuing operations as net income less
discontinued operations. We believe that excluding certain items from net income
from continuing operations for the three months ended December 31, 2003,
provides a more meaningful basis to measure the results of our operations. A
reconciliation of our net income to adjusted net income from continuing
operations is presented below.
GAAP Results for the Three
Months Ended December 31,
--------------------------
2004 2003
-------- --------
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME
FROM CONTINUING OPERATIONS:
Net income (loss) ......................................... $ 12,845 $(20,427)
Discontinued operations ................................... 988 744
-------- --------
Net income (loss) from continuing operations .............. 13,833 (19,683)
Tax affected impairment of goodwill (a) ................... -- 29,180
Tax affected charge for Bob Baker (b) ..................... -- 1,552
-------- --------
Adjusted net income from continuing operations ............ $ 13,833 $ 11,049
======== ========
RECONCILIATION OF NET INCOME (LOSS) PER COMMON SHARE (DILUTED)
TO ADJUSTED NET INCOME FROM CONTINUING OPERATIONS PER
COMMON SHARE (DILUTED):
Net income (loss) ......................................... $ 0.39 $ (0.62)
Discontinued operations ................................... 0.03 0.02
-------- --------
Net income (loss) from continuing operations .............. 0.42 (0.60)
Tax affected impairment of goodwill (a) ................... -- 0.89
Tax affected charge for Bob Baker (b) ..................... -- 0.05
-------- --------
Adjusted net income from continuing operations ............ $ 0.42 $ 0.34
======== ========
Weighted average shares outstanding (diluted): ............... 32,672 32,686
======== ========
GAAP Results for the Year
Ended December 31,
-------------------------
2004 2003
-------- --------
RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME
FROM CONTINUING OPERATIONS:
Net income ................................................... $ 50,073 $ 15,187
Discontinued operations ...................................... 2,671 3,304
-------- --------
Net income from continuing operations ........................ 52,744 18,491
Tax affected impairment of goodwill (a) ...................... -- 29,180
Tax affected charge for Bob Baker (b) ........................ -- 1,552
-------- --------
Adjusted net income from continuing operations ............... $ 52,744 $ 49,223
======== ========
RECONCILIATION OF NET INCOME PER COMMON SHARE
(DILUTED) TO ADJUSTED NET INCOME FROM CONTINUING
OPERATIONS PER COMMON SHARE (DILUTED):
Net income ................................................... $ 1.53 $ 0.46
Discontinued operations ...................................... 0.08 0.11
-------- --------
Net income from continuing operations ........................ 1.61 0.57
Tax affected impairment of goodwill (a) ...................... -- 0.89
Tax affected charge for Bob Baker (b) ........................ -- 0.04
-------- --------
Adjusted net income from continuing operations ............... $ 1.61 $ 1.50
======== ========
Weighted average shares outstanding (diluted): ............... 32,674 32,715
======== ========
(a) In connection with our annual impairment test of goodwill conducted in the
fourth quarter of 2003, we recorded a non-cash goodwill impairment charge
of $37,930 ($29,180 after tax) associated with our Oregon platform.
(b) In connection with the proposed acquisition of the Bob Baker Auto Group, we
incurred $2,503 of costs ($1,552 after tax), including certain costs
capitalized in prior periods. In the fourth quarter of 2003, we determined
that the acquisition was no longer probable and wrote-off such expenses.