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 February 19, 2013. |
ASBURY AUTOMOTIVE GROUP, INC. | |||
Date: February 19, 2013 | By: | /s/ Craig T. Monaghan | |
Name: | Craig T. Monaghan | ||
Title: | President and Chief Executive Officer |
Exhibit No. | Description | |
99.1 | Press Release dated February 19, 2013. |
• | Total revenues increased 15% to $1.2 billion |
• | New vehicle retail revenues increased 21% |
• | Used vehicle retail revenues up 5% |
• | Finance and insurance revenues up 23% |
• | Total gross profit up 11% with increases from all business lines |
• | SG&A expense as a percent of gross profit improved 230 basis points to 72.2% |
• | Continued to drive operational excellence through investments in people, technology, and process improvements |
• | Repurchased $23 million of Asbury common stock in 2012, or approximately 3% of our common shares outstanding; $50 million remaining under new Board Authorization |
• | Completed $18 million in lease buy-outs |
• | Purchased $13 million of real estate in anticipation of future lease expirations |
• | Continued fine tuning our dealership portfolio; acquired a VW and a Bentley franchise and divested a Honda and a Volvo franchise |
• | Reduced fourth quarter leverage to 2.4x Total Debt/Adjusted EBITDA compared to 2.8x at the end of fourth quarter 2011 |
For the Three Months Ended December 31, | For the Twelve Months Ended December 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
REVENUES: | |||||||||||||||
New vehicle | $ | 712.9 | $ | 589.2 | $ | 2,607.4 | $ | 2,239.4 | |||||||
Used vehicle | 320.9 | 295.9 | 1,301.0 | 1,208.1 | |||||||||||
Parts and service | 141.4 | 137.4 | 565.3 | 555.6 | |||||||||||
Finance and insurance, net | 43.5 | 35.5 | 166.6 | 137.0 | |||||||||||
Total revenues | 1,218.7 | 1,058.0 | 4,640.3 | 4,140.1 | |||||||||||
COST OF SALES: | |||||||||||||||
New vehicle | 668.8 | 549.5 | 2,441.8 | 2,088.3 | |||||||||||
Used vehicle | 296.5 | 273.8 | 1,197.4 | 1,108.1 | |||||||||||
Parts and service | 59.2 | 60.1 | 237.5 | 244.7 | |||||||||||
Total cost of sales | 1,024.5 | 883.4 | 3,876.7 | 3,441.1 | |||||||||||
GROSS PROFIT | 194.2 | 174.6 | 763.6 | 699.0 | |||||||||||
OPERATING EXPENSES: | |||||||||||||||
Selling, general and administrative | 140.2 | 130.0 | 556.1 | 531.6 | |||||||||||
Depreciation and amortization | 5.7 | 5.8 | 22.6 | 22.5 | |||||||||||
Other operating (income) expense, net | — | (2.4 | ) | (1.0 | ) | 13.7 | |||||||||
Income from operations | 48.3 | 41.2 | 185.9 | 131.2 | |||||||||||
OTHER EXPENSES: | |||||||||||||||
Floor plan interest expense | (3.1 | ) | (2.7 | ) | (11.6 | ) | (9.3 | ) | |||||||
Other interest expense, net | (9.0 | ) | (8.8 | ) | (35.6 | ) | (39.6 | ) | |||||||
Swap interest expense | (1.2 | ) | (1.3 | ) | (5.0 | ) | (5.5 | ) | |||||||
Convertible debt discount amortization | — | (0.2 | ) | (0.4 | ) | (0.8 | ) | ||||||||
Loss on extinguishment of long-term debt | — | (0.4 | ) | — | (0.8 | ) | |||||||||
Total other expenses, net | (13.3 | ) | (13.4 | ) | (52.6 | ) | (56.0 | ) | |||||||
Income before income taxes | 35.0 | 27.8 | 133.3 | 75.2 | |||||||||||
INCOME TAX EXPENSE | 12.4 | 10.6 | 50.0 | 28.7 | |||||||||||
INCOME FROM CONTINUING OPERATIONS | 22.6 | 17.2 | 83.3 | 46.5 | |||||||||||
DISCONTINUED OPERATIONS, net of tax | 0.2 | 4.3 | (1.1 | ) | 21.4 | ||||||||||
NET INCOME | $ | 22.8 | $ | 21.5 | $ | 82.2 | $ | 67.9 | |||||||
EARNINGS PER COMMON SHARE: | |||||||||||||||
Basic— | |||||||||||||||
Continuing operations | $ | 0.73 | $ | 0.55 | $ | 2.68 | $ | 1.46 | |||||||
Discontinued operations | 0.01 | 0.14 | (0.04 | ) | 0.68 | ||||||||||
Net income | $ | 0.74 | $ | 0.69 | $ | 2.64 | $ | 2.14 | |||||||
Diluted— | |||||||||||||||
Continuing operations | $ | 0.72 | $ | 0.54 | $ | 2.64 | $ | 1.43 | |||||||
Discontinued operations | 0.01 | 0.14 | (0.03 | ) | 0.65 | ||||||||||
Net income | $ | 0.73 | $ | 0.68 | $ | 2.61 | $ | 2.08 | |||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||||||||||||||
Basic | 31.0 | 31.0 | 31.1 | 31.8 | |||||||||||
Stock options | — | 0.5 | 0.2 | 0.6 | |||||||||||
Restricted stock | 0.2 | 0.1 | 0.1 | 0.1 | |||||||||||
Performance share units | 0.2 | 0.1 | 0.1 | 0.1 | |||||||||||
Diluted | 31.4 | 31.7 | 31.5 | 32.6 |
For the Three Months Ended December 31, | Increase | % Change | ||||||||||||
2012 | 2011 | |||||||||||||
(Dollars in millions, except for per vehicle data) | ||||||||||||||
Revenue: | ||||||||||||||
New vehicle revenue—same store(1) | ||||||||||||||
Luxury | $ | 287.1 | $ | 235.0 | $ | 52.1 | 22 | % | ||||||
Mid-line import | 323.3 | 263.9 | 59.4 | 23 | % | |||||||||
Mid-line domestic | 98.3 | 90.3 | 8.0 | 9 | % | |||||||||
Total new vehicle revenue—same store(1) | 708.7 | 589.2 | 119.5 | 20 | % | |||||||||
New vehicle revenue—acquisitions | 4.2 | — | ||||||||||||
New vehicle revenue, as reported | $ | 712.9 | $ | 589.2 | $ | 123.7 | 21 | % | ||||||
Gross profit: | ||||||||||||||
New vehicle gross profit—same store(1) | ||||||||||||||
Luxury | $ | 21.3 | $ | 18.6 | $ | 2.7 | 15 | % | ||||||
Mid-line import | 16.1 | 14.8 | 1.3 | 9 | % | |||||||||
Mid-line domestic | 6.5 | 6.3 | 0.2 | 3 | % | |||||||||
Total new vehicle gross profit—same store(1) | 43.9 | 39.7 | 4.2 | 11 | % | |||||||||
New vehicle gross profit—acquisitions | 0.2 | — | ||||||||||||
New vehicle gross profit, as reported | $ | 44.1 | $ | 39.7 | $ | 4.4 | 11 | % | ||||||
For the Three Months Ended December 31, | Increase (Decrease) | % Change | ||||||||||||
2012 | 2011 | |||||||||||||
New vehicle units: | ||||||||||||||
New vehicle retail units—same store(1) | ||||||||||||||
Luxury | 5,772 | 4,738 | 1,034 | 22 | % | |||||||||
Mid-line import | 12,098 | 9,793 | 2,305 | 24 | % | |||||||||
Mid-line domestic | 2,583 | 2,353 | 230 | 10 | % | |||||||||
Total new vehicle retail units—same store(1) | 20,453 | 16,884 | 3,569 | 21 | % | |||||||||
Fleet vehicles | 555 | 672 | (117 | ) | (17 | )% | ||||||||
Total new vehicle units—same store(1) | 21,008 | 17,556 | 3,452 | 20 | % | |||||||||
New vehicle units—acquisitions | 92 | — | ||||||||||||
New vehicle units—actual | 21,100 | 17,556 | 3,544 | 20 | % |
For the Three Months Ended December 31, | Increase (Decrease) | % Change | ||||||||||||
2012 | 2011 | |||||||||||||
Revenue per new vehicle sold—same store(1) | $ | 33,735 | $ | 33,561 | $ | 174 | 1 | % | ||||||
Gross profit per new vehicle sold—same store(1) | $ | 2,090 | $ | 2,261 | $ | (171 | ) | (8 | )% | |||||
New vehicle gross margin—same store(1) | 6.2 | % | 6.7 | % | (0.5 | )% | (7 | )% |
(1) | Same store amounts consist of information from dealerships for the identical months of each period presented in the comparison, commencing with the first full month in which the dealership was owned by us. |
For the Three Months Ended December 31, | Increase | % Change | ||||||||||||
2012 | 2011 | |||||||||||||
(Dollars in millions, except for per vehicle data) | ||||||||||||||
Revenue: | ||||||||||||||
Used vehicle retail revenues—same store(1) | $ | 267.6 | $ | 255.5 | $ | 12.1 | 5 | % | ||||||
Used vehicle retail revenues—acquisitions | 1.7 | — | ||||||||||||
Total used vehicle retail revenues | 269.3 | 255.5 | 13.8 | 5 | % | |||||||||
Used vehicle wholesale revenues—same store(1) | 51.3 | 40.4 | 10.9 | 27 | % | |||||||||
Used vehicle wholesale revenues—acquisitions | 0.3 | — | ||||||||||||
Total used vehicle wholesale revenues | 51.6 | 40.4 | 11.2 | 28 | % | |||||||||
Used vehicle revenue, as reported | $ | 320.9 | $ | 295.9 | $ | 25.0 | 8 | % | ||||||
Gross profit: | ||||||||||||||
Used vehicle retail gross profit—same store(1) | $ | 24.3 | $ | 22.9 | $ | 1.4 | 6 | % | ||||||
Used vehicle retail gross profit—acquisitions | 0.3 | — | ||||||||||||
Total used vehicle retail gross profit | 24.6 | 22.9 | 1.7 | 7 | % | |||||||||
Used vehicle wholesale gross profit—same store(1) | (0.2 | ) | (0.8 | ) | 0.6 | 75 | % | |||||||
Used vehicle wholesale gross profit—acquisitions | — | — | ||||||||||||
Total used vehicle wholesale gross profit | (0.2 | ) | (0.8 | ) | 0.6 | 75 | % | |||||||
Used vehicle gross profit, as reported | $ | 24.4 | $ | 22.1 | $ | 2.3 | 10 | % | ||||||
Used vehicle retail units: | ||||||||||||||
Used vehicle retail units—same store(1) | 13,611 | 13,483 | 128 | 1 | % | |||||||||
Used vehicle retail units—acquisitions | 70 | — | ||||||||||||
Used vehicle retail units—actual | 13,681 | 13,483 | 198 | 1 | % |
For the Three Months Ended December 31, | Increase | % Change | ||||||||||||
2012 | 2011 | |||||||||||||
Revenue per used vehicle retailed—same store(1) | $ | 19,661 | $ | 18,950 | $ | 711 | 4 | % | ||||||
Gross profit per used vehicle retailed—same store(1) | $ | 1,785 | $ | 1,698 | $ | 87 | 5 | % | ||||||
Used vehicle retail gross margin—same store(1) | 9.1 | % | 9.0 | % | 0.1 | % | 1 | % |
(1) | Same store amounts consist of information from dealerships for the identical months of each period presented in the comparison, commencing with the first full month in which the dealership was owned by us. |
For the Three Months Ended December 31, | Increase (Decrease) | % Change | ||||||||||||
2012 | 2011 | |||||||||||||
(Dollars in millions) | ||||||||||||||
Revenue: | ||||||||||||||
Parts and service revenue—same store(1) | $ | 140.6 | $ | 137.4 | $ | 3.2 | 2 | % | ||||||
Parts and service revenues—acquisitions | 0.8 | — | ||||||||||||
Parts and service revenue, as reported | $ | 141.4 | $ | 137.4 | $ | 4.0 | 3 | % | ||||||
Gross profit: | ||||||||||||||
Parts and service gross profit—same store(1) | ||||||||||||||
Customer pay | $ | 50.7 | $ | 48.1 | $ | 2.6 | 5 | % | ||||||
Reconditioning and preparation | 16.5 | 14.9 | 1.6 | 11 | % | |||||||||
Warranty | 9.9 | 9.5 | 0.4 | 4 | % | |||||||||
Wholesale parts | 4.7 | 4.8 | (0.1 | ) | (2 | )% | ||||||||
Total parts and service gross profit—same store(1) | 81.8 | 77.3 | 4.5 | 6 | % | |||||||||
Parts and service gross profit—acquisitions | 0.4 | — | ||||||||||||
Parts and service gross profit, as reported | $ | 82.2 | $ | 77.3 | $ | 4.9 | 6 | % | ||||||
Parts and service gross margin—same store(1) | 58.2 | % | 56.3 | % | 1.9 | % | 3 | % |
(1) | Same store amounts consist of information from dealerships for the identical months of each period presented in the comparison, commencing with the first full month in which the dealership was owned by us. |
For the Three Months Ended December 31, | Increase | % Change | ||||||||||||
2012 | 2011 | |||||||||||||
(Dollars in millions, except for per vehicle data) | ||||||||||||||
Finance and insurance, net—same store(1) | $ | 43.3 | $ | 35.5 | $ | 7.8 | 22 | % | ||||||
Finance and insurance, net—acquisitions | 0.2 | — | ||||||||||||
Finance and insurance, net as reported | $ | 43.5 | $ | 35.5 | $ | 8.0 | 23 | % | ||||||
Finance and insurance, net per vehicle sold—same store(1) | $ | 1,251 | $ | 1,144 | $ | 107 | 9 | % |
(1) | Same store amounts consist of information from dealerships for the identical months of each period presented in the comparison, commencing with the first full month in which the dealership was owned by us. |
For the Three Months Ended December 31, | |||||
2012 | 2011 | ||||
REVENUE MIX PERCENTAGES: | |||||
New vehicles | 58.5 | % | 55.7 | % | |
Used retail vehicles | 22.1 | % | 24.1 | % | |
Used vehicle wholesale | 4.2 | % | 3.8 | % | |
Parts and service | 11.6 | % | 13.0 | % | |
Finance and insurance, net | 3.6 | % | 3.4 | % | |
Total revenue | 100.0 | % | 100.0 | % | |
GROSS PROFIT MIX PERCENTAGES: | |||||
New vehicles | 22.7 | % | 22.7 | % | |
Used retail vehicles | 12.7 | % | 13.2 | % | |
Used vehicle wholesale | (0.1 | )% | (0.5 | )% | |
Parts and service | 42.3 | % | 44.3 | % | |
Finance and insurance, net | 22.4 | % | 20.3 | % | |
Total gross profit | 100.0 | % | 100.0 | % | |
SG&A EXPENSES AS A PERCENTAGE OF GROSS PROFIT | 72.2 | % | 74.5 | % |
For the Twelve Months Ended December 31, | Increase | % Change | ||||||||||||
2012 | 2011 | |||||||||||||
(Dollars in millions, except for per vehicle data) | ||||||||||||||
Revenue: | ||||||||||||||
New vehicle revenue—same store(1) | ||||||||||||||
Luxury | $ | 959.2 | $ | 828.1 | $ | 131.1 | 16 | % | ||||||
Mid-line import | 1,268.3 | 1,060.6 | 207.7 | 20 | % | |||||||||
Mid-line domestic | 374.1 | 350.7 | 23.4 | 7 | % | |||||||||
Total new vehicle revenue—same store(1) | 2,601.6 | 2,239.4 | 362.2 | 16 | % | |||||||||
New vehicle revenue—acquisitions | 5.8 | — | ||||||||||||
New vehicle revenue, as reported | $ | 2,607.4 | $ | 2,239.4 | $ | 368.0 | 16 | % | ||||||
Gross profit: | ||||||||||||||
New vehicle gross profit—same store(1) | ||||||||||||||
Luxury | $ | 72.6 | $ | 63.4 | $ | 9.2 | 15 | % | ||||||
Mid-line import | 67.4 | 63.9 | 3.5 | 5 | % | |||||||||
Mid-line domestic | 25.1 | 23.8 | 1.3 | 5 | % | |||||||||
Total new vehicle gross profit—same store(1) | 165.1 | 151.1 | 14.0 | 9 | % | |||||||||
New vehicle gross profit—acquisitions | 0.5 | — | ||||||||||||
New vehicle gross profit, as reported | $ | 165.6 | $ | 151.1 | $ | 14.5 | 10 | % | ||||||
For the Twelve Months Ended December 31, | Increase (Decrease) | % Change | ||||||||||||
2012 | 2011 | |||||||||||||
New vehicle units: | ||||||||||||||
New vehicle retail units—same store(1) | ||||||||||||||
Luxury | 19,386 | 16,712 | 2,674 | 16 | % | |||||||||
Mid-line import | 48,067 | 40,560 | 7,507 | 19 | % | |||||||||
Mid-line domestic | 10,147 | 9,353 | 794 | 8 | % | |||||||||
Total new vehicle retail units—same store(1) | 77,600 | 66,625 | 10,975 | 16 | % | |||||||||
Fleet vehicles | 2,365 | 2,679 | (314 | ) | (12 | )% | ||||||||
Total new vehicle units—same store(1) | 79,965 | 69,304 | 10,661 | 15 | % | |||||||||
New vehicle units—acquisitions | 112 | — | ||||||||||||
New vehicle units—actual | 80,077 | 69,304 | 10,773 | 16 | % |
For the Twelve Months Ended December 31, | Increase (Decrease) | % Change | ||||||||||||
2012 | 2011 | |||||||||||||
Revenue per new vehicle sold—same store(1) | $ | 32,534 | $ | 32,313 | $ | 221 | 1 | % | ||||||
Gross profit per new vehicle sold—same store(1) | $ | 2,065 | $ | 2,180 | $ | (115 | ) | (5 | )% | |||||
New vehicle gross margin—same store(1) | 6.3 | % | 6.7 | % | (0.4 | )% | (6 | )% |
(1) | Same store amounts consist of information from dealerships for the identical months of each period presented in the comparison, commencing with the first full month in which the dealership was owned by us. |
For the Twelve Months Ended December 31, | Increase | % Change | ||||||||||||
2012 | 2011 | |||||||||||||
(Dollars in millions, except for per vehicle data) | ||||||||||||||
Revenue: | ||||||||||||||
Used vehicle retail revenues—same store(1) | $ | 1,099.2 | $ | 1,021.5 | $ | 77.7 | 8 | % | ||||||
Used vehicle retail revenues—acquisitions | 2.2 | — | ||||||||||||
Total used vehicle retail revenues | 1,101.4 | 1,021.5 | 79.9 | 8 | % | |||||||||
Used vehicle wholesale revenues—same store(1) | 199.2 | 186.6 | 12.6 | 7 | % | |||||||||
Used vehicle wholesale revenues—acquisitions | 0.4 | — | ||||||||||||
Total used vehicle wholesale revenues | 199.6 | 186.6 | 13.0 | 7 | % | |||||||||
Used vehicle revenue, as reported | $ | 1,301.0 | $ | 1,208.1 | $ | 92.9 | 8 | % | ||||||
Gross profit: | ||||||||||||||
Used vehicle retail gross profit—same store(1) | $ | 103.8 | $ | 101.1 | $ | 2.7 | 3 | % | ||||||
Used vehicle retail gross profit—acquisitions | 0.2 | — | ||||||||||||
Total used vehicle retail gross profit | 104.0 | 101.1 | 2.9 | 3 | % | |||||||||
Used vehicle wholesale gross profit—same store(1) | (0.5 | ) | (1.1 | ) | 0.6 | 55 | % | |||||||
Used vehicle wholesale gross profit—acquisitions | 0.1 | — | ||||||||||||
Total used vehicle wholesale gross profit | (0.4 | ) | (1.1 | ) | 0.7 | 64 | % | |||||||
Used vehicle gross profit, as reported | $ | 103.6 | $ | 100.0 | $ | 3.6 | 4 | % | ||||||
Used vehicle retail units: | ||||||||||||||
Used vehicle retail units—same store(1) | 57,345 | 54,009 | 3,336 | 6 | % | |||||||||
Used vehicle retail units—acquisitions | 89 | — | ||||||||||||
Used vehicle retail units—actual | 57,434 | 54,009 | 3,425 | 6 | % |
For the Twelve Months Ended December 31, | Increase (Decrease) | % Change | ||||||||||||
2012 | 2011 | |||||||||||||
Revenue per used vehicle retailed—same store(1) | $ | 19,168 | $ | 18,914 | $ | 254 | 1 | % | ||||||
Gross profit per used vehicle retailed—same store(1) | $ | 1,810 | $ | 1,872 | $ | (62 | ) | (3 | )% | |||||
Used vehicle retail gross margin—same store(1) | 9.4 | % | 9.9 | % | (0.5 | )% | (5 | )% |
(1) | Same store amounts consist of information from dealerships for the identical months of each period presented in the comparison, commencing with the first full month in which the dealership was owned by us. |
For the Twelve Months Ended December 31, | Increase (Decrease) | % Change | ||||||||||||
2012 | 2011 | |||||||||||||
(Dollars in millions) | ||||||||||||||
Revenue: | ||||||||||||||
Parts and service revenue—same store(1) | $ | 564.2 | $ | 555.6 | $ | 8.6 | 2 | % | ||||||
Parts and service revenues—acquisitions | 1.1 | — | ||||||||||||
Parts and service revenue, as reported | $ | 565.3 | $ | 555.6 | $ | 9.7 | 2 | % | ||||||
Gross profit: | ||||||||||||||
Parts and service gross profit—same store(1) | ||||||||||||||
Customer pay | $ | 202.4 | $ | 193.1 | $ | 9.3 | 5 | % | ||||||
Reconditioning and preparation | 66.9 | 56.2 | 10.7 | 19 | % | |||||||||
Warranty | 38.8 | 42.8 | (4.0 | ) | (9 | )% | ||||||||
Wholesale parts | 19.1 | 18.8 | 0.3 | 2 | % | |||||||||
Total parts and service gross profit—same store(1) | 327.2 | 310.9 | 16.3 | 5 | % | |||||||||
Parts and service gross profit—acquisitions | 0.6 | — | ||||||||||||
Parts and service gross profit, as reported | $ | 327.8 | $ | 310.9 | $ | 16.9 | 5 | % | ||||||
Parts and service gross margin—same store(1) | 58.0 | % | 56.0 | % | 2.0 | % | 4 | % |
(1) | Same store amounts consist of information from dealerships for the identical months of each period presented in the comparison, commencing with the first full month in which the dealership was owned by us. |
For the Twelve Months Ended December 31, | Increase | % Change | ||||||||||||
2012 | 2011 | |||||||||||||
(Dollars in millions, except for per vehicle data) | ||||||||||||||
Finance and insurance, net—same store(1) | $ | 166.4 | $ | 137.0 | $ | 29.4 | 21 | % | ||||||
Finance and insurance, net—acquisitions | 0.2 | — | ||||||||||||
Finance and insurance, net as reported | $ | 166.6 | $ | 137.0 | $ | 29.6 | 22 | % | ||||||
Finance and insurance, net per vehicle sold—same store(1) | $ | 1,212 | $ | 1,111 | $ | 101 | 9 | % |
(1) | Same store amounts consist of information from dealerships for the identical months of each period presented in the comparison, commencing with the first full month in which the dealership was owned by us. |
For the Year Ended December 31, | |||||
2012 | 2011 | ||||
REVENUE MIX PERCENTAGES: | |||||
New vehicles | 56.2 | % | 54.1 | % | |
Used retail vehicles | 23.7 | % | 24.7 | % | |
Used vehicle wholesale | 4.3 | % | 4.5 | % | |
Parts and service | 12.2 | % | 13.4 | % | |
Finance and insurance, net | 3.6 | % | 3.3 | % | |
Total revenue | 100.0 | % | 100.0 | % | |
GROSS PROFIT MIX PERCENTAGES: | |||||
New vehicles | 21.7 | % | 21.6 | % | |
Used retail vehicles | 13.7 | % | 14.5 | % | |
Used vehicle wholesale | (0.1 | )% | (0.2 | )% | |
Parts and service | 42.9 | % | 44.5 | % | |
Finance and insurance, net | 21.8 | % | 19.6 | % | |
Total gross profit | 100.0 | % | 100.0 | % | |
SG&A EXPENSES AS A PERCENTAGE OF GROSS PROFIT | 72.8 | % | 76.1 | % |
December 31, 2012 | December 31, 2011 | Increase (Decrease) | % Change | |||||||||||
SELECTED BALANCE SHEET DATA | ||||||||||||||
Cash and cash equivalents | $ | 6.2 | $ | 11.4 | $ | (5.2 | ) | (46 | )% | |||||
New vehicle inventory | 517.4 | 400.0 | 117.4 | 29 | % | |||||||||
Used vehicle inventory | 94.6 | 82.0 | 12.6 | 15 | % | |||||||||
Parts inventory | 36.5 | 37.5 | (1.0 | ) | (3 | )% | ||||||||
Total current assets | 986.4 | 792.5 | 193.9 | 24 | % | |||||||||
Floor plan notes payable | 556.7 | 434.0 | 122.7 | 28 | % | |||||||||
Total current liabilities | 779.8 | 636.3 | 143.5 | 23 | % | |||||||||
CAPITALIZATION: | ||||||||||||||
Long-term debt (including current portion) | $ | 466.0 | $ | 458.6 | $ | 7.4 | 2 | % | ||||||
Shareholders' equity | 402.8 | 326.6 | 76.2 | 23 | % | |||||||||
Total | $ | 868.8 | $ | 785.2 | $ | 83.6 | 11 | % |
For the Year Ended December 31, | |||||
2012 | 2011 | ||||
Luxury | |||||
BMW | 9 | % | 10 | % | |
Mercedes-Benz | 7 | % | 7 | % | |
Lexus | 7 | % | 6 | % | |
Acura | 5 | % | 5 | % | |
Infiniti | 5 | % | 4 | % | |
Other luxury | 4 | % | 5 | % | |
Total luxury | 37 | % | 37 | % | |
Mid-Line Imports: | |||||
Honda | 21 | % | 19 | % | |
Nissan | 13 | % | 13 | % | |
Toyota | 11 | % | 11 | % | |
Other imports | 4 | % | 4 | % | |
Total imports | 49 | % | 47 | % | |
Mid-Line Domestic: | |||||
Ford | 8 | % | 9 | % | |
Chevrolet | 2 | % | 3 | % | |
Other domestics | 4 | % | 4 | % | |
Total domestic | 14 | % | 16 | % | |
Total New Vehicle Revenue | 100 | % | 100 | % |
For the Three Months Ended December 31, | Increase (Decrease) | % of Gross Profit Decrease | ||||||||||||||||||
2012 | % of Gross Profit | 2011 | % of Gross Profit | |||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
SG&A, excluding rent expense | $ | 131.4 | 67.7 | % | $ | 121.1 | 69.4 | % | $ | 10.3 | (1.7 | )% | ||||||||
Rent expense | 8.8 | 4.5 | % | 8.9 | 5.1 | % | (0.1 | ) | (0.6 | )% | ||||||||||
SG&A-total | $ | 140.2 | 72.2 | % | $ | 130.0 | 74.5 | % | $ | 10.2 | (2.3 | )% | ||||||||
Gross profit | $ | 194.2 | $ | 174.6 |
For the Year Ended December 31, | Increase (Decrease) | % of Gross Profit Decrease | ||||||||||||||||||
2012 | % of Gross Profit | 2011 | % of Gross Profit | |||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
SG&A, excluding rent expense | $ | 520.6 | 68.2 | % | $ | 495.3 | 70.9 | % | $ | 25.3 | (2.7 | )% | ||||||||
Rent expense | 35.5 | 4.6 | % | 36.3 | 5.2 | % | (0.8 | ) | (0.6 | )% | ||||||||||
SG&A-total | $ | 556.1 | 72.8 | % | $ | 531.6 | 76.1 | % | $ | 24.5 | (3.3 | )% | ||||||||
Gross profit | $ | 763.6 | $ | 699.0 |
For the Twelve Months Ended | |||||||
December 31, 2012 | December 31, 2011 | ||||||
(Dollars in millions) | |||||||
Adjusted leverage ratio: | |||||||
Book value of long-term debt (including current portion) | $ | 466.0 | $ | 458.6 | |||
Calculation of adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"): | |||||||
Income from continuing operations | $ | 83.3 | $ | 46.5 | |||
Add: | |||||||
Depreciation and amortization | 22.6 | 22.5 | |||||
Income tax expense | 50.0 | 28.7 | |||||
Convertible debt discount amortization | 0.4 | 0.8 | |||||
Swap and other interest expense | 40.6 | 45.1 | |||||
Earnings before interest, taxes, depreciation and amortization ("EBITDA") | 196.9 | 143.6 | |||||
Non-core items - expense: | |||||||
Lease termination charges | — | 1.0 | |||||
Real estate impairment charges | — | 0.9 | |||||
Litigation related expense | — | 9.0 | |||||
Executive separation cost | — | 6.6 | |||||
Loss on extinguishment of long-term debt | — | 0.8 | |||||
Total non-core items | — | 18.3 | |||||
Adjusted EBITDA | $ | 196.9 | $ | 161.9 | |||
Adjusted leverage ratio | 2.4 | 2.8 |
For the Three Months Ended December 31, | |||||||
2012 | 2011 | ||||||
(In millions, except per share data) | |||||||
Adjusted income from continuing operations: | |||||||
Net income | $ | 22.8 | $ | 21.5 | |||
Discontinued operations, net of tax | (0.2 | ) | (4.3 | ) | |||
Income from continuing operations | 22.6 | 17.2 | |||||
Non-core items - expense (income): | |||||||
Loss on extinguishment of long-term debt | — | 0.4 | |||||
Tax benefit on non-core items above | — | (0.1 | ) | ||||
Total non-core items | — | 0.3 | |||||
Adjusted income from continuing operations | $ | 22.6 | $ | 17.5 | |||
Adjusted diluted earnings per share (EPS) from continuing operations: | |||||||
Net income | $ | 0.73 | $ | 0.68 | |||
Discontinued operations, net of tax | (0.01 | ) | (0.14 | ) | |||
Income from continuing operations | 0.72 | 0.54 | |||||
Total non-core items | — | 0.01 | |||||
Adjusted diluted EPS from continuing operations | $ | 0.72 | $ | 0.55 | |||
Weighted average common shares outstanding - diluted | 31.4 | 31.7 |
For the Twelve Months Ended December 31, | |||||||
2012 | 2011 | ||||||
(In millions, except per share data) | |||||||
Adjusted income from continuing operations: | |||||||
Net income | $ | 82.2 | $ | 67.9 | |||
Discontinued operations, net of tax (i) | 1.1 | (21.4 | ) | ||||
Income from continuing operations | 83.3 | 46.5 | |||||
Non-core items - expense (income): | |||||||
Litigation related expense | — | 9.0 | |||||
Executive separation costs | — | 6.6 | |||||
Lease termination charges | — | 1.0 | |||||
Real estate impairment charges | — | 0.9 | |||||
Loss on extinguishment of long-term debt | — | 0.8 | |||||
Tax benefit on non-core items above | — | (7.0 | ) | ||||
Total non-core items | — | 11.3 | |||||
Adjusted income from continuing operations | $ | 83.3 | $ | 57.8 | |||
Adjusted diluted earnings per share (EPS) from continuing operations: | |||||||
Net income | $ | 2.61 | $ | 2.08 | |||
Discontinued operations, net of tax | 0.03 | (0.65 | ) | ||||
Income from continuing operations | 2.64 | 1.43 | |||||
Total non-core items | — | 0.34 | |||||
Adjusted diluted EPS from continuing operations | $ | 2.64 | $ | 1.77 | |||
Weighted average common shares outstanding - diluted | 31.5 | 32.6 |