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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):
July 10, 2003
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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 01-06093
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(Commission File Number) (IRS Employer Identification No.)
Three Landmark Square, Suite 500, Stamford, CT 06901
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(Address of principal executive offices) (Zip Code)
(203) 356-4400
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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)
Item 7. Financial Statements and Exhibits.
The registrant issued a press release on July 10, 2003, announcing that it has
reached a mutual agreement with Wal-Mart Stores, Inc. to end the pilot "Price 1"
program, which press release is attached hereto as exhibit 99.1.
(c) Exhibits
Exhibit No. Description
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99.1 Press Release dated July 10, 2003
SIGNATURES
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: July 11, 2003 By: /s/Thomas F. Gilman
Name: Thomas F. Gilman
Title: Chief Financial Officer
EXHIBIT INDEX
Exhibit No. Description
99.1 Press Release dated July 10, 2003
Contact Information: David Shein
RFBinder Partners
212-994-7514 / 917-613-8881
david.shein@rfbinder.com
ASBURY AUTOMOTIVE GROUP DISCONTINUES
PRICE 1 AUTO STORES PILOT PROGRAM
STAMFORD, CT, July 10, 2003 - After a one-year test, Asbury Automotive Group,
Inc. (NYSE: ABG) announced today it has reached a mutual agreement with Wal-Mart
Stores, Inc. (NYSE: WMT) to end the pilot "Price 1" program. The Price 1 concept
consisted of the sale of certified, pre-owned automobiles on a low-cost,
no-haggle basis on property Asbury leased from Wal-Mart at four test stores in
the Houston, Texas area. The Price 1 test stores will be closed immediately.
"While we are disappointed that Price 1 did not emerge as a successful stand
alone retail format, lessons learned through this process will benefit our much
larger dealership-based used car operations," said Kenneth B. Gilman, President
and CEO of Asbury Automotive Group. "Customer response to the Price 1 concept
has been excellent; however, customer traffic was lighter than expected. Given
the cost of opening a second test market, we decided that we could more
efficiently build our used car business, and realize higher and more certain
returns, by continuing to focus on improving used car operations in our
traditional franchised dealerships. During the first half of 2003, the used car
business has been an area of notable strength for us."
Asbury said it would now reclassify financial results from its Price 1 pilot
program to discontinued operations, including previously reported after tax
losses of $0.9 million, or $0.03 per share, for the first quarter of 2003 and
$4.8 million, or $0.15 per share, for the year ended December 31, 2002. Costs to
close Price 1 are expected to be nominal and will be recognized as discontinued
operations in the third quarter. The Company's previously issued full year 2003
EPS guidance from continuing operations included a provision for a $0.07 loss
from Price 1.
About Asbury Automotive Group
Asbury Automotive Group, Inc., headquartered in Stamford, Connecticut, is one of
the largest automobile retailers in the U.S., with 2002 revenues of $4.5
billion. Built through a combination of organic growth and a series of strategic
acquisitions, Asbury now operates through nine geographically concentrated,
individually branded "platforms." These platforms currently operate 92 retail
auto stores, encompassing 132 franchises for the sale and servicing of 35
different brands of American, European and Asian automobiles. Asbury believes
that its product mix includes one of the highest proportions of luxury and
mid-line import brands among leading public U.S. 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, risks associated
with the Company's substantial indebtedness, risks related to pending and
potential future acquisitions, 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.