001-31262 | 01-0609375 | |||
(Commission File Number) | (IRS Employer Identification No.) | |||
2905 Premiere Parkway NW Suite 300 Duluth, GA | 30097 | |||
(Address of principal executive offices) | (Zip Code) | |||
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit No. | Description | ||
99.1 | Press Release dated July 24, 2012. |
ASBURY AUTOMOTIVE GROUP, INC. | |||
Date: July 24, 2012 | By: | /s/ Craig T. Monaghan | |
Name: | Craig T. Monaghan | ||
Title: | President and Chief Executive Officer |
Exhibit No. | Description | |
99.1 | Press Release dated July 24, 2012. |
• | SG&A expense as a percent of gross profit improved 250 basis points from an adjusted 74.9% in the prior year period to 72.4% |
• | Reduced debt over $16 million during the quarter; second quarter leverage at 2.3x Total Debt/Adjusted EBITDA |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
REVENUES: | |||||||||||||||
New vehicle | $ | 663.4 | $ | 570.7 | $ | 1,253.1 | $ | 1,135.0 | |||||||
Used vehicle | 339.1 | 316.7 | 664.8 | 613.3 | |||||||||||
Parts and service | 145.7 | 146.0 | 290.8 | 287.6 | |||||||||||
Finance and insurance, net | 42.8 | 35.5 | 81.8 | 67.6 | |||||||||||
Total revenues | 1,191.0 | 1,068.9 | 2,290.5 | 2,103.5 | |||||||||||
COST OF SALES: | |||||||||||||||
New vehicle | 620.5 | 529.6 | 1,170.9 | 1,060.1 | |||||||||||
Used vehicle | 313.4 | 288.6 | 610.6 | 558.2 | |||||||||||
Parts and service | 60.7 | 64.4 | 123.1 | 128.5 | |||||||||||
Total cost of sales | 994.6 | 882.6 | 1,904.6 | 1,746.8 | |||||||||||
GROSS PROFIT | 196.4 | 186.3 | 385.9 | 356.7 | |||||||||||
OPERATING EXPENSES: | |||||||||||||||
Selling, general and administrative | 142.1 | 140.5 | 283.5 | 273.1 | |||||||||||
Depreciation and amortization | 5.8 | 5.7 | 11.5 | 11.0 | |||||||||||
Other operating expense (income), net | 0.3 | 3.0 | (0.1 | ) | 13.5 | ||||||||||
Income from operations | 48.2 | 37.1 | 91.0 | 59.1 | |||||||||||
OTHER EXPENSES: | |||||||||||||||
Floor plan interest expense | (3.0 | ) | (2.2 | ) | (5.7 | ) | (4.9 | ) | |||||||
Other interest expense, net | (8.6 | ) | (10.4 | ) | (17.9 | ) | (20.8 | ) | |||||||
Swap interest expense | (1.2 | ) | (1.4 | ) | (2.5 | ) | (2.8 | ) | |||||||
Convertible debt discount amortization | (0.2 | ) | (0.3 | ) | (0.3 | ) | (0.5 | ) | |||||||
Total other expenses, net | (13.0 | ) | (14.3 | ) | (26.4 | ) | (29.0 | ) | |||||||
Income before income taxes | 35.2 | 22.8 | 64.6 | 30.1 | |||||||||||
INCOME TAX EXPENSE | 13.6 | 8.8 | 25.0 | 11.6 | |||||||||||
INCOME FROM CONTINUING OPERATIONS | 21.6 | 14.0 | 39.6 | 18.5 | |||||||||||
DISCONTINUED OPERATIONS, net of tax | (0.5 | ) | 0.2 | (0.9 | ) | 15.6 | |||||||||
NET INCOME | $ | 21.1 | $ | 14.2 | $ | 38.7 | $ | 34.1 | |||||||
EARNINGS PER COMMON SHARE: | |||||||||||||||
Basic— | |||||||||||||||
Continuing operations | $ | 0.69 | $ | 0.44 | $ | 1.27 | $ | 0.57 | |||||||
Discontinued operations | (0.01 | ) | — | (0.03 | ) | 0.49 | |||||||||
Net income | $ | 0.68 | $ | 0.44 | $ | 1.24 | $ | 1.06 | |||||||
Diluted— | |||||||||||||||
Continuing operations | $ | 0.69 | $ | 0.43 | $ | 1.25 | $ | 0.56 | |||||||
Discontinued operations | (0.02 | ) | — | (0.03 | ) | 0.47 | |||||||||
Net income | $ | 0.67 | $ | 0.43 | $ | 1.22 | $ | 1.03 | |||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||||||||||||||
Basic | 31.1 | 32.1 | 31.1 | 32.3 | |||||||||||
Stock options | 0.2 | 0.6 | 0.3 | 0.6 | |||||||||||
Restricted stock | 0.1 | 0.1 | 0.1 | 0.2 | |||||||||||
Performance share units | 0.1 | 0.1 | 0.1 | 0.1 | |||||||||||
Diluted | 31.5 | 32.9 | 31.6 | 33.2 |
For the Three Months Ended June 30, | Increase (Decrease) | % Change | ||||||||||||
2012 | 2011 | |||||||||||||
(Dollars in millions, except for per vehicle data) | ||||||||||||||
Revenue: | ||||||||||||||
New vehicle revenue | ||||||||||||||
Luxury | $ | 235.3 | $ | 204.7 | $ | 30.6 | 15 | % | ||||||
Mid-line import | 333.7 | 278.7 | 55.0 | 20 | % | |||||||||
Mid-line domestic | 94.4 | 87.3 | 7.1 | 8 | % | |||||||||
New vehicle revenue, as reported | $ | 663.4 | $ | 570.7 | $ | 92.7 | 16 | % | ||||||
Gross profit: | ||||||||||||||
New vehicle gross profit | ||||||||||||||
Luxury | $ | 18.3 | $ | 16.4 | $ | 1.9 | 12 | % | ||||||
Mid-line import | 18.5 | 18.8 | (0.3 | ) | (2 | )% | ||||||||
Mid-line domestic | 6.1 | 5.9 | 0.2 | 3 | % | |||||||||
New vehicle gross profit, as reported | $ | 42.9 | $ | 41.1 | $ | 1.8 | 4 | % | ||||||
For the Three Months Ended June 30, | Increase | % Change | ||||||||||||
2012 | 2011 | |||||||||||||
New vehicle units: | ||||||||||||||
New vehicle retail units | ||||||||||||||
Luxury | 4,911 | 4,132 | 779 | 19 | % | |||||||||
Mid-line import | 12,749 | 10,753 | 1,996 | 19 | % | |||||||||
Mid-line domestic | 2,407 | 2,388 | 19 | 1 | % | |||||||||
Total new vehicle retail units | 20,067 | 17,273 | 2,794 | 16 | % | |||||||||
Fleet vehicles | 694 | 600 | 94 | 16 | % | |||||||||
New vehicle units—actual | 20,761 | 17,873 | 2,888 | 16 | % |
For the Three Months Ended June 30, | Increase (Decrease) | % Change | ||||||||||||
2012 | 2011 | |||||||||||||
Revenue per new vehicle sold | $ | 31,954 | $ | 31,931 | $ | 23 | — | % | ||||||
Gross profit per new vehicle sold | $ | 2,066 | $ | 2,300 | $ | (234 | ) | (10 | )% | |||||
New vehicle gross margin | 6.5 | % | 7.2 | % | (0.7 | )% | (10 | )% |
For the Three Months Ended June 30, | Increase (Decrease) | % Change | ||||||||||||
2012 | 2011 | |||||||||||||
(Dollars in millions, except for per vehicle data) | ||||||||||||||
Revenue: | ||||||||||||||
Used vehicle retail revenues | $ | 287.0 | $ | 269.1 | $ | 17.9 | 7 | % | ||||||
Used vehicle wholesale revenues | 52.1 | 47.6 | 4.5 | 9 | % | |||||||||
Used vehicle revenue, as reported | $ | 339.1 | $ | 316.7 | $ | 22.4 | 7 | % | ||||||
Gross profit: | ||||||||||||||
Used vehicle retail gross profit | $ | 26.1 | $ | 28.2 | $ | (2.1 | ) | (7 | )% | |||||
Used vehicle wholesale gross profit | (0.4 | ) | (0.1 | ) | (0.3 | ) | 300 | % | ||||||
Used vehicle gross profit, as reported | $ | 25.7 | $ | 28.1 | $ | (2.4 | ) | (9 | )% | |||||
Used vehicle retail units: | ||||||||||||||
Used vehicle retail units—actual | 14,897 | 14,036 | 861 | 6 | % |
For the Three Months Ended June 30, | Increase (Decrease) | % Change | ||||||||||||
2012 | 2011 | |||||||||||||
Revenue per used vehicle retailed | $ | 19,266 | $ | 19,172 | $ | 94 | — | % | ||||||
Gross profit per used vehicle retailed | $ | 1,752 | $ | 2,009 | $ | (257 | ) | (13 | )% | |||||
Used vehicle retail gross margin | 9.1 | % | 10.5 | % | (1.4 | )% | (13 | )% |
For the Three Months Ended June 30, | Increase (Decrease) | % Change | ||||||||||||
2012 | 2011 | |||||||||||||
(Dollars in millions) | ||||||||||||||
Revenue: | ||||||||||||||
Parts and service revenue | $ | 145.7 | $ | 146.0 | $ | (0.3 | ) | — | % | |||||
Gross profit: | ||||||||||||||
Parts and service gross profit | ||||||||||||||
Customer pay | $ | 52.2 | $ | 50.6 | $ | 1.6 | 3 | % | ||||||
Reconditioning and preparation | 17.8 | 14.6 | 3.2 | 22 | % | |||||||||
Warranty | 9.8 | 11.3 | (1.5 | ) | (13 | )% | ||||||||
Wholesale parts | 5.2 | 5.1 | 0.1 | 2 | % | |||||||||
Total parts and service gross profit | $ | 85.0 | $ | 81.6 | $ | 3.4 | 4 | % | ||||||
Parts and service gross margin | 58.3 | % | 55.9 | % | 2.4 | % | 4 | % |
For the Three Months Ended June 30, | Increase | % Change | ||||||||||||
2012 | 2011 | |||||||||||||
(Dollars in millions, except for per vehicle data) | ||||||||||||||
Finance and insurance, net | $ | 42.8 | $ | 35.5 | $ | 7.3 | 21 | % | ||||||
Finance and insurance, net per vehicle sold | $ | 1,200 | $ | 1,113 | $ | 87 | 8 | % |
For the Three Months Ended June 30, | |||||
2012 | 2011 | ||||
REVENUE MIX PERCENTAGES: | |||||
New vehicles | 55.7 | % | 53.4 | % | |
Used retail vehicles | 24.1 | % | 25.1 | % | |
Used vehicle wholesale | 4.4 | % | 4.5 | % | |
Parts and service | 12.2 | % | 13.7 | % | |
Finance and insurance, net | 3.6 | % | 3.3 | % | |
Total revenue | 100.0 | % | 100.0 | % | |
GROSS PROFIT MIX PERCENTAGES: | |||||
New vehicles | 21.8 | % | 22.1 | % | |
Used retail vehicles | 13.3 | % | 15.1 | % | |
Used vehicle wholesale | (0.2 | )% | (0.1 | )% | |
Parts and service | 43.3 | % | 43.8 | % | |
Finance and insurance, net | 21.8 | % | 19.1 | % | |
Total gross profit | 100.0 | % | 100.0 | % | |
SG&A EXPENSES AS A PERCENTAGE OF GROSS PROFIT | 72.4 | % | 75.4 | % |
For the Six Months Ended June 30, | Increase | % Change | ||||||||||||
2012 | 2011 | |||||||||||||
(Dollars in millions, except for per vehicle data) | ||||||||||||||
Revenue: | ||||||||||||||
New vehicle revenue | ||||||||||||||
Luxury | $ | 437.2 | $ | 409.4 | $ | 27.8 | 7 | % | ||||||
Mid-line import | 634.3 | 561.7 | 72.6 | 13 | % | |||||||||
Mid-line domestic | 181.6 | 163.9 | 17.7 | 11 | % | |||||||||
New vehicle revenue, as reported | $ | 1,253.1 | $ | 1,135.0 | $ | 118.1 | 10 | % | ||||||
Gross profit: | ||||||||||||||
New vehicle gross profit | ||||||||||||||
Luxury | $ | 33.8 | $ | 30.6 | $ | 3.2 | 10 | % | ||||||
Mid-line import | 36.3 | 33.2 | 3.1 | 9 | % | |||||||||
Mid-line domestic | 12.1 | 11.1 | 1.0 | 9 | % | |||||||||
New vehicle gross profit, as reported | $ | 82.2 | $ | 74.9 | $ | 7.3 | 10 | % | ||||||
For the Six Months Ended June 30, | Increase (Decrease) | % Change | ||||||||||||
2012 | 2011 | |||||||||||||
New vehicle units: | ||||||||||||||
New vehicle retail units | ||||||||||||||
Luxury | 9,050 | 8,291 | 759 | 9 | % | |||||||||
Mid-line import | 24,173 | 21,988 | 2,185 | 10 | % | |||||||||
Mid-line domestic | 4,750 | 4,531 | 219 | 5 | % | |||||||||
Total new vehicle retail units | 37,973 | 34,810 | 3,163 | 9 | % | |||||||||
Fleet vehicles | 1,274 | 1,307 | (33 | ) | (3 | )% | ||||||||
New vehicle units—actual | 39,247 | 36,117 | 3,130 | 9 | % |
For the Six Months Ended June 30, | Increase | % Change | ||||||||||||
2012 | 2011 | |||||||||||||
Revenue per new vehicle sold | $ | 31,929 | $ | 31,426 | $ | 503 | 2 | % | ||||||
Gross profit per new vehicle sold | $ | 2,094 | $ | 2,074 | $ | 20 | 1 | % | ||||||
New vehicle gross margin | 6.6 | % | 6.6 | % | — | % | — | % |
For the Six Months Ended June 30, | Increase (Decrease) | % Change | ||||||||||||
2012 | 2011 | |||||||||||||
(Dollars in millions, except for per vehicle data) | ||||||||||||||
Revenue: | ||||||||||||||
Used vehicle retail revenues | $ | 568.3 | $ | 513.9 | $ | 54.4 | 11 | % | ||||||
Used vehicle wholesale revenues | 96.5 | 99.4 | (2.9 | ) | (3 | )% | ||||||||
Used vehicle revenue, as reported | $ | 664.8 | $ | 613.3 | $ | 51.5 | 8 | % | ||||||
Gross profit: | ||||||||||||||
Used vehicle retail gross profit | $ | 54.0 | $ | 54.2 | $ | (0.2 | ) | — | % | |||||
Used vehicle wholesale gross profit | 0.2 | 0.9 | (0.7 | ) | (78 | )% | ||||||||
Used vehicle gross profit, as reported | $ | 54.2 | $ | 55.1 | $ | (0.9 | ) | (2 | )% | |||||
Used vehicle retail units: | ||||||||||||||
Used vehicle retail units | 30,121 | 27,357 | 2,764 | 10 | % |
For the Six Months Ended June 30, | Increase (Decrease) | % Change | ||||||||||||
2012 | 2011 | |||||||||||||
Revenue per used vehicle retailed | $ | 18,867 | $ | 18,785 | $ | 82 | — | % | ||||||
Gross profit per used vehicle retailed | $ | 1,793 | $ | 1,981 | $ | (188 | ) | (9 | )% | |||||
Used vehicle retail gross margin | 9.5 | % | 10.5 | % | (1.0 | )% | (10 | )% |
For the Six Months Ended June 30, | Increase (Decrease) | % Change | ||||||||||||
2012 | 2011 | |||||||||||||
(Dollars in millions) | ||||||||||||||
Revenue: | ||||||||||||||
Parts and service revenue | $ | 290.8 | $ | 287.6 | $ | 3.2 | 1 | % | ||||||
Gross profit: | ||||||||||||||
Parts and service gross profit | ||||||||||||||
Customer pay | $ | 103.0 | $ | 97.6 | $ | 5.4 | 6 | % | ||||||
Reconditioning and preparation | 34.4 | 27.6 | 6.8 | 25 | % | |||||||||
Warranty | 20.0 | 23.9 | (3.9 | ) | (16 | )% | ||||||||
Wholesale parts | 10.3 | 10.0 | 0.3 | 3 | % | |||||||||
Total parts and service gross profit | $ | 167.7 | $ | 159.1 | $ | 8.6 | 5 | % | ||||||
Parts and service gross margin | 57.7 | % | 55.3 | % | 2.4 | % | 4 | % |
For the Six Months Ended June 30, | Increase | % Change | ||||||||||||
2012 | 2011 | |||||||||||||
(Dollars in millions, except for per vehicle data) | ||||||||||||||
Finance and insurance, net | $ | 81.8 | $ | 67.6 | $ | 14.2 | 21 | % | ||||||
Finance and insurance, net per vehicle sold | $ | 1,179 | $ | 1,065 | $ | 114 | 11 | % |
For the Six Months Ended June 30, | |||||
2012 | 2011 | ||||
REVENUE MIX PERCENTAGES: | |||||
New vehicles | 54.7 | % | 54.0 | % | |
Used retail vehicles | 24.8 | % | 24.4 | % | |
Used vehicle wholesale | 4.2 | % | 4.7 | % | |
Parts and service | 12.7 | % | 13.7 | % | |
Finance and insurance, net | 3.6 | % | 3.2 | % | |
Total revenue | 100.0 | % | 100.0 | % | |
GROSS PROFIT MIX PERCENTAGES: | |||||
New vehicles | 21.3 | % | 21.0 | % | |
Used retail vehicles | 13.9 | % | 15.1 | % | |
Used vehicle wholesale | 0.1 | % | 0.3 | % | |
Parts and service | 43.5 | % | 44.6 | % | |
Finance and insurance, net | 21.2 | % | 19.0 | % | |
Total gross profit | 100.0 | % | 100.0 | % | |
SG&A EXPENSES AS A PERCENTAGE OF GROSS PROFIT | 73.5 | % | 76.6 | % |
June 30, 2012 | December 31, 2011 | Increase (Decrease) | % Change | |||||||||||
SELECTED BALANCE SHEET DATA | ||||||||||||||
Cash and cash equivalents | $ | 8.7 | $ | 11.4 | $ | (2.7 | ) | (24 | )% | |||||
New vehicle inventory | 460.3 | 400.0 | 60.3 | 15 | % | |||||||||
Used vehicle inventory | 96.6 | 82.0 | 14.6 | 18 | % | |||||||||
Parts inventory | 38.3 | 37.5 | 0.8 | 2 | % | |||||||||
Total current assets | 855.2 | 792.5 | 62.7 | 8 | % | |||||||||
Floor plan notes payable | 509.7 | 434.0 | 75.7 | 17 | % | |||||||||
Total current liabilities | 710.3 | 636.3 | 74.0 | 12 | % | |||||||||
CAPITALIZATION: | ||||||||||||||
Long-term debt (including current portion) | $ | 416.1 | $ | 458.6 | $ | (42.5 | ) | (9 | )% | |||||
Shareholders' equity | 363.2 | 326.6 | 36.6 | 11 | % | |||||||||
Total | $ | 779.3 | $ | 785.2 | $ | (5.9 | ) | (1 | )% |
For the Six Months Ended June 30, | |||||
2012 | 2011 | ||||
Luxury | |||||
BMW | 8 | % | 9 | % | |
Mercedes-Benz | 7 | % | 7 | % | |
Lexus | 6 | % | 5 | % | |
Acura | 5 | % | 4 | % | |
Infiniti | 5 | % | 4 | % | |
Other luxury | 4 | % | 7 | % | |
Total luxury | 35 | % | 36 | % | |
Mid-Line Imports: | |||||
Honda | 22 | % | 21 | % | |
Nissan | 13 | % | 12 | % | |
Toyota | 11 | % | 11 | % | |
Other imports | 5 | % | 6 | % | |
Total imports | 51 | % | 50 | % | |
Mid-Line Domestic: | |||||
Ford | 8 | % | 8 | % | |
Chevrolet | 2 | % | 3 | % | |
Other domestics | 4 | % | 3 | % | |
Total domestic | 14 | % | 14 | % | |
Total New Vehicle Revenue | 100 | % | 100 | % |
As of March 31, 2011 | As of June 30, 2011 | As of September 30, 2011 | As of December 31, 2011 | As of March 31, 2012 | As of June 30, 2012 | ||||||||||||||||||
Honda | $ | 79 | $ | 36 | $ | 30 | $ | 35 | $ | 63 | $ | 79 | |||||||||||
Nissan | 67 | 63 | 65 | 81 | 83 | 81 | |||||||||||||||||
Toyota | 49 | 28 | 22 | 35 | 35 | 44 | |||||||||||||||||
Infiniti | 26 | 18 | 17 | 26 | 35 | 26 | |||||||||||||||||
Lexus | 16 | 8 | 11 | 11 | 16 | 18 | |||||||||||||||||
Acura | 17 | 12 | 8 | 13 | 25 | 30 | |||||||||||||||||
Total | $ | 254 | $ | 165 | $ | 153 | $ | 201 | $ | 257 | $ | 278 |
For the Three Months Ended June 30, | Increase (Decrease) | % of Gross Profit Increase (Decrease) | ||||||||||||||||||
2012 | % of Gross Profit | 2011 | % of Gross Profit | |||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
SG&A, excluding rent expense | $ | 133.3 | 67.9 | % | $ | 130.3 | 69.9 | % | $ | 3.0 | (2.0 | )% | ||||||||
Rent expense | 8.8 | 4.5 | % | 10.2 | 5.5 | % | (1.4 | ) | (1.0 | )% | ||||||||||
SG&A-total | $ | 142.1 | 72.4 | % | $ | 140.5 | 75.4 | % | $ | 1.6 | (3.0 | )% | ||||||||
Gross profit | $ | 196.4 | $ | 186.3 |
For the Six Months Ended June 30, | Increase (Decrease) | % of Gross Profit Increase (Decrease) | ||||||||||||||||||
2012 | % of Gross Profit | 2011 | % of Gross Profit | |||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
SG&A, excluding rent expense | $ | 265.8 | 68.9 | % | $ | 253.6 | 71.1 | % | $ | 12.2 | (2.2 | )% | ||||||||
Rent expense | 17.7 | 4.6 | % | 19.5 | 5.5 | % | (1.8 | ) | (0.9 | )% | ||||||||||
SG&A-total | $ | 283.5 | 73.5 | % | $ | 273.1 | 76.6 | % | $ | 10.4 | (3.1 | )% | ||||||||
Gross profit | $ | 385.9 | $ | 356.7 |
For the Twelve Months Ended | |||||||
June 30, 2012 | March 31, 2012 | ||||||
(Dollars in millions) | |||||||
Adjusted leverage ratio: | |||||||
Book value of long-term debt (including current portion) | $ | 416.1 | $ | 432.9 | |||
Calculation of adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"): | |||||||
Income from continuing operations | $ | 69.1 | $ | 61.4 | |||
Add: | |||||||
Depreciation and amortization | 23.1 | 23.1 | |||||
Income tax expense | 42.9 | 38.1 | |||||
Convertible debt discount amortization | 0.6 | 0.7 | |||||
Swap and other interest expense | 42.0 | 43.8 | |||||
Earnings before interest, taxes, depreciation and amortization ("EBITDA") | 177.7 | 167.1 | |||||
Non-core items - expense: | |||||||
Loss on extinguishment of long-term debt | 0.8 | 0.8 | |||||
Real estate related losses | 0.4 | 1.9 | |||||
Executive separation cost | 1.6 | 4.3 | |||||
Total non-core items | 2.8 | 7.0 | |||||
Adjusted EBITDA | $ | 180.5 | $ | 174.1 | |||
Adjusted leverage ratio | 2.3 | 2.5 |
For the Three Months Ended June 30, | Increase | % of Gross Profit Increase (Decrease) | ||||||||||||||||||
2012 | % of Gross Profit | 2011 | % of Gross Profit | |||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
SG&A expense, as reported | $ | 142.1 | 72.4 | % | $ | 140.5 | 75.4 | % | $ | 1.6 | (3.0 | )% | ||||||||
Less: lease termination charge | — | — | % | (1.0 | ) | (0.5 | )% | |||||||||||||
Adjusted SG&A expense | $ | 142.1 | 72.4 | % | $ | 139.5 | 74.9 | % | $ | 2.6 | (2.5 | )% | ||||||||
Gross profit | $ | 196.4 | $ | 186.3 | ||||||||||||||||
For the Six Months Ended June 30, | Increase | % of Gross Profit Increase (Decrease) | ||||||||||||||||||
2012 | % of Gross Profit | 2011 | % of Gross Profit | |||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
SG&A expense, as reported | $ | 283.5 | 73.5 | % | $ | 273.1 | 76.6 | % | $ | 10.4 | (3.1 | )% | ||||||||
Less: lease termination charge | — | — | % | (1.0 | ) | (0.3 | )% | |||||||||||||
Adjusted SG&A expense | $ | 283.5 | 73.5 | % | $ | 272.1 | 76.3 | % | $ | 11.4 | (2.8 | )% | ||||||||
Gross profit | $ | 385.9 | $ | 356.7 |
For the Three Months Ended June 30, | |||||||
2012 | 2011 | ||||||
(In millions, except per share data) | |||||||
Adjusted income from continuing operations: | |||||||
Net income | $ | 21.1 | $ | 14.2 | |||
Discontinued operations, net of tax | 0.5 | (0.2 | ) | ||||
Income from continuing operations | 21.6 | 14.0 | |||||
Non-core items - expense (income): | |||||||
Executive separation costs | — | 2.7 | |||||
Real estate-related charges | — | 1.5 | |||||
Tax benefit on non-core items above | — | (1.6 | ) | ||||
Total non-core items | — | 2.6 | |||||
Adjusted income from continuing operations | $ | 21.6 | $ | 16.6 | |||
Adjusted diluted earnings per share (EPS) from continuing operations: | |||||||
Net income | $ | 0.67 | $ | 0.43 | |||
Discontinued operations, net of tax | 0.02 | — | |||||
Income from continuing operations | 0.69 | 0.43 | |||||
Total non-core items | — | 0.07 | |||||
Adjusted diluted EPS from continuing operations | $ | 0.69 | $ | 0.50 | |||
Weighted average common shares outstanding - diluted | 31.5 | 32.9 |
For the Six Months Ended June 30, | |||||||
2012 | 2011 | ||||||
(In millions, except per share data) | |||||||
Adjusted income from continuing operations: | |||||||
Net income | $ | 38.7 | $ | 34.1 | |||
Discontinued operations, net of tax | 0.9 | (15.6 | ) | ||||
Income from continuing operations | 39.6 | 18.5 | |||||
Non-core items - expense (income): | |||||||
Litigation related expense | — | 9.0 | |||||
Executive separation costs | — | 5.0 | |||||
Real estate-related charges | — | 1.5 | |||||
Tax benefit on non-core items above | — | (6.0 | ) | ||||
Total non-core items | — | 9.5 | |||||
Adjusted income from continuing operations | $ | 39.6 | $ | 28.0 | |||
Adjusted diluted earnings per share (EPS) from continuing operations: | |||||||
Net income | $ | 1.22 | $ | 1.03 | |||
Discontinued operations, net of tax | 0.03 | (0.47 | ) | ||||
Income from continuing operations | 1.25 | 0.56 | |||||
Total non-core items | — | 0.28 | |||||
Adjusted diluted EPS from continuing operations | $ | 1.25 | $ | 0.84 | |||
Weighted average common shares outstanding - diluted | 31.6 | 33.2 |