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 April 21, 2015. |
ASBURY AUTOMOTIVE GROUP, INC. | |||
Date: April 21, 2015 | By: | /s/ Keith R. Style | |
Name: | Keith R. Style | ||
Title: | Senior Vice President and Chief Financial Officer |
Exhibit No. | Description | |
99.1 | Press Release dated April 21, 2015. |
• | Total revenues increased 14% to $1.5 billion |
• | Total gross profit up 11% with increases from all business lines |
• | New vehicle retail revenues up 14%; gross profit up 9% |
• | Used vehicle retail revenues up 14%; gross profit up 7% |
• | Finance and insurance revenues up 15% |
• | Parts and service revenue up 11%; gross profit up 13% |
• | SG&A expense as a percent of gross profit improved 90 basis points to 68.5% |
• | Operating margin of 4.7% remained the same |
• | Repurchased $102 million of common stock |
• | Secured a $100 million mortgage real estate facility |
For the Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
REVENUES: | |||||||
New vehicle | $ | 830.5 | $ | 726.0 | |||
Used vehicle | 473.4 | 416.9 | |||||
Parts and service | 176.7 | 159.4 | |||||
Finance and insurance, net | 61.2 | 53.4 | |||||
Total revenues | 1,541.8 | 1,355.7 | |||||
COST OF SALES: | |||||||
New vehicle | 780.9 | 680.6 | |||||
Used vehicle | 438.1 | 382.9 | |||||
Parts and service | 66.4 | 62.1 | |||||
Total cost of sales | 1,285.4 | 1,125.6 | |||||
GROSS PROFIT | 256.4 | 230.1 | |||||
OPERATING EXPENSES: | |||||||
Selling, general and administrative | 175.7 | 159.8 | |||||
Depreciation and amortization | 7.3 | 6.3 | |||||
Other operating expense, net | 0.3 | (0.2 | ) | ||||
Income from operations | 73.1 | 64.2 | |||||
OTHER EXPENSES: | |||||||
Floor plan interest expense | (3.9 | ) | (3.0 | ) | |||
Other interest expense, net | (10.3 | ) | (9.1 | ) | |||
Swap interest expense | (0.5 | ) | (0.6 | ) | |||
Total other expenses, net | (14.7 | ) | (12.7 | ) | |||
Income before income taxes | 58.4 | 51.5 | |||||
INCOME TAX EXPENSE | 22.5 | 20.0 | |||||
INCOME FROM CONTINUING OPERATIONS | 35.9 | 31.5 | |||||
DISCONTINUED OPERATIONS, net of tax | — | (0.1 | ) | ||||
NET INCOME | $ | 35.9 | $ | 31.4 | |||
EARNINGS PER COMMON SHARE: | |||||||
Basic— | |||||||
Continuing operations | $ | 1.31 | $ | 1.04 | |||
Discontinued operations | — | (0.01 | ) | ||||
Net income | $ | 1.31 | $ | 1.03 | |||
Diluted— | |||||||
Continuing operations | $ | 1.30 | $ | 1.03 | |||
Discontinued operations | — | (0.01 | ) | ||||
Net income | $ | 1.30 | $ | 1.02 | |||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||||||
Basic | 27.5 | 30.4 | |||||
Restricted stock | 0.1 | 0.2 | |||||
Performance share units | 0.1 | 0.1 | |||||
Diluted | 27.7 | 30.7 |
For the Three Months Ended March 31, | Increase (Decrease) | % Change | ||||||||||||
2015 | 2014 | |||||||||||||
(Dollars in millions, except for per vehicle data) | ||||||||||||||
Revenue: | ||||||||||||||
New vehicle revenue—same store(1) | ||||||||||||||
Luxury | $ | 303.3 | $ | 276.3 | $ | 27.0 | 10 | % | ||||||
Mid-line import | 373.1 | 344.7 | 28.4 | 8 | % | |||||||||
Mid-line domestic | 113.7 | 105.0 | 8.7 | 8 | % | |||||||||
Total new vehicle revenue—same store(1) | 790.1 | 726.0 | 64.1 | 9 | % | |||||||||
New vehicle revenue—acquisitions | 40.4 | — | ||||||||||||
New vehicle revenue, as reported | $ | 830.5 | $ | 726.0 | $ | 104.5 | 14 | % | ||||||
Gross profit: | ||||||||||||||
New vehicle gross profit—same store(1) | ||||||||||||||
Luxury | $ | 21.9 | $ | 20.5 | $ | 1.4 | 7 | % | ||||||
Mid-line import | 18.0 | 18.1 | (0.1 | ) | (1 | )% | ||||||||
Mid-line domestic | 7.1 | 6.8 | 0.3 | 4 | % | |||||||||
Total new vehicle gross profit—same store(1) | 47.0 | 45.4 | 1.6 | 4 | % | |||||||||
New vehicle gross profit—acquisitions | 2.6 | — | ||||||||||||
New vehicle gross profit, as reported | $ | 49.6 | $ | 45.4 | $ | 4.2 | 9 | % | ||||||
For the Three Months Ended March 31, | Increase (Decrease) | % Change | ||||||||||||
2015 | 2014 | |||||||||||||
New vehicle units: | ||||||||||||||
New vehicle retail units—same store(1) | ||||||||||||||
Luxury | 5,875 | 5,388 | 487 | 9 | % | |||||||||
Mid-line import | 13,812 | 13,008 | 804 | 6 | % | |||||||||
Mid-line domestic | 3,021 | 2,697 | 324 | 12 | % | |||||||||
Total new vehicle retail units—same store(1) | 22,708 | 21,093 | 1,615 | 8 | % | |||||||||
Fleet vehicles | 223 | 563 | (340 | ) | (60 | )% | ||||||||
Total new vehicle units—same store(1) | 22,931 | 21,656 | 1,275 | 6 | % | |||||||||
New vehicle units—acquisitions | 1,127 | — | ||||||||||||
New vehicle units—actual | 24,058 | 21,656 | 2,402 | 11 | % |
For the Three Months Ended March 31, | Increase (Decrease) | % Change | ||||||||||||
2015 | 2014 | |||||||||||||
Revenue per new vehicle sold—same store(1) | $ | 34,456 | $ | 33,524 | $ | 932 | 3 | % | ||||||
Gross profit per new vehicle sold—same store(1) | $ | 2,050 | $ | 2,096 | $ | (46 | ) | (2 | )% | |||||
New vehicle gross margin—same store(1) | 5.9 | % | 6.3 | % | (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 Three Months Ended March 31, | Increase (Decrease) | % Change | ||||||||||||
2015 | 2014 | |||||||||||||
(Dollars in millions, except for per vehicle data) | ||||||||||||||
Revenue: | ||||||||||||||
Used vehicle retail revenues—same store(1) | $ | 391.5 | $ | 367.3 | $ | 24.2 | 7 | % | ||||||
Used vehicle retail revenues—acquisitions and new stores | 27.7 | — | ||||||||||||
Total used vehicle retail revenues | 419.2 | 367.3 | 51.9 | 14 | % | |||||||||
Used vehicle wholesale revenues—same store(1) | 51.4 | 49.6 | 1.8 | 4 | % | |||||||||
Used vehicle wholesale revenues—acquisitions and new stores | 2.8 | — | ||||||||||||
Total used vehicle wholesale revenues | 54.2 | 49.6 | 4.6 | 9 | % | |||||||||
Used vehicle revenue, as reported | $ | 473.4 | $ | 416.9 | $ | 56.5 | 14 | % | ||||||
Gross profit: | ||||||||||||||
Used vehicle retail gross profit—same store(1) | $ | 33.3 | $ | 33.2 | $ | 0.1 | — | % | ||||||
Used vehicle retail gross profit—acquisitions and new stores | 2.1 | — | ||||||||||||
Total used vehicle retail gross profit | 35.4 | 33.2 | 2.2 | 7 | % | |||||||||
Used vehicle wholesale gross profit—same store(1) | 0.1 | 0.8 | (0.7 | ) | (88 | )% | ||||||||
Used vehicle wholesale gross profit—acquisitions and new stores | (0.2 | ) | — | |||||||||||
Total used vehicle wholesale gross profit | (0.1 | ) | 0.8 | (0.9 | ) | (113 | )% | |||||||
Used vehicle gross profit, as reported | $ | 35.3 | $ | 34.0 | $ | 1.3 | 4 | % | ||||||
Used vehicle retail units: | ||||||||||||||
Used vehicle retail units—same store(1) | 19,048 | 18,503 | 545 | 3 | % | |||||||||
Used vehicle retail units—acquisitions and new stores | 1,419 | — | ||||||||||||
Used vehicle retail units—actual | 20,467 | 18,503 | 1,964 | 11 | % |
For the Three Months Ended March 31, | Increase (Decrease) | % Change | ||||||||||||
2015 | 2014 | |||||||||||||
Revenue per used vehicle retailed—same store(1) | $ | 20,553 | $ | 19,851 | $ | 702 | 4 | % | ||||||
Gross profit per used vehicle retailed—same store(1) | $ | 1,748 | $ | 1,794 | $ | (46 | ) | (3 | )% | |||||
Used vehicle retail gross margin—same store(1) | 8.5 | % | 9.0 | % | (0.5 | )% | (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 Three Months Ended March 31, | Increase (Decrease) | % Change | ||||||||||||
2015 | 2014 | |||||||||||||
(Dollars in millions) | ||||||||||||||
Revenue: | ||||||||||||||
Parts and service revenue—same store(1) | $ | 172.6 | $ | 159.4 | $ | 13.2 | 8 | % | ||||||
Parts and service revenues—acquisitions and new stores | 4.1 | — | ||||||||||||
Parts and service revenue, as reported | $ | 176.7 | $ | 159.4 | $ | 17.3 | 11 | % | ||||||
Gross profit: | ||||||||||||||
Parts and service gross profit—same store(1) | ||||||||||||||
Customer pay | $ | 58.4 | $ | 56.0 | $ | 2.4 | 4 | % | ||||||
Reconditioning and preparation | 27.5 | 23.2 | 4.3 | 19 | % | |||||||||
Warranty | 16.3 | 12.9 | 3.4 | 26 | % | |||||||||
Wholesale parts | 5.2 | 5.2 | — | — | % | |||||||||
Total parts and service gross profit—same store(1) | 107.4 | 97.3 | 10.1 | 10 | % | |||||||||
Parts and service gross profit—acquisitions and new stores | 2.9 | — | ||||||||||||
Parts and service gross profit, as reported | $ | 110.3 | $ | 97.3 | $ | 13.0 | 13 | % | ||||||
Parts and service gross margin—same store(1) | 62.2 | % | 61.0 | % | 1.2 | % | 2 | % |
(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 March 31, | Increase (Decrease) | % Change | ||||||||||||
2015 | 2014 | |||||||||||||
(Dollars in millions, except for per vehicle data) | ||||||||||||||
Finance and insurance, net—same store(1) | $ | 57.3 | $ | 53.4 | $ | 3.9 | 7 | % | ||||||
Finance and insurance, net—acquisitions and new stores | 3.9 | — | ||||||||||||
Finance and insurance, net as reported | $ | 61.2 | $ | 53.4 | $ | 7.8 | 15 | % | ||||||
Finance and insurance, net per vehicle sold—same store(1) | $ | 1,365 | $ | 1,330 | $ | 35 | 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 March 31, | |||||
2015 | 2014 | ||||
REVENUE MIX PERCENTAGES: | |||||
New vehicles | 53.9 | % | 53.6 | % | |
Used retail vehicles | 27.1 | % | 27.0 | % | |
Used vehicle wholesale | 3.5 | % | 3.7 | % | |
Parts and service | 11.5 | % | 11.8 | % | |
Finance and insurance, net | 4.0 | % | 3.9 | % | |
Total revenue | 100.0 | % | 100.0 | % | |
GROSS PROFIT MIX PERCENTAGES: | |||||
New vehicles | 19.3 | % | 19.7 | % | |
Used retail vehicles | 13.8 | % | 14.5 | % | |
Used vehicle wholesale | — | % | 0.3 | % | |
Parts and service | 43.0 | % | 42.3 | % | |
Finance and insurance, net | 23.9 | % | 23.2 | % | |
Total gross profit | 100.0 | % | 100.0 | % | |
SG&A EXPENSES AS A PERCENTAGE OF GROSS PROFIT | 68.5 | % | 69.4 | % |
March 31, 2015 | December 31, 2014 | Increase (Decrease) | % Change | |||||||||||
SELECTED BALANCE SHEET DATA | ||||||||||||||
Cash and cash equivalents | $ | 1.1 | $ | 2.9 | $ | (1.8 | ) | (62 | )% | |||||
New vehicle inventory | 673.4 | 699.5 | (26.1 | ) | (4 | )% | ||||||||
Used vehicle inventory | 153.0 | 141.7 | 11.3 | 8 | % | |||||||||
Parts inventory | 44.1 | 44.8 | (0.7 | ) | (2 | )% | ||||||||
Total current assets | 1,284.3 | 1,276.7 | 7.6 | 1 | % | |||||||||
Floor plan notes payable | 777.6 | 766.8 | 10.8 | 1 | % | |||||||||
Total current liabilities | 1,088.8 | 1,041.1 | 47.7 | 5 | % | |||||||||
CAPITALIZATION: | ||||||||||||||
Long-term debt (including current portion) | $ | 690.7 | $ | 707.4 | $ | (16.7 | ) | (2 | )% | |||||
Shareholders' equity | 378.5 | 444.9 | (66.4 | ) | (15 | )% | ||||||||
Total | $ | 1,069.2 | $ | 1,152.3 | $ | (83.1 | ) | (7 | )% |
For the Three Months Ended March 31, | |||||
2015 | 2014 | ||||
Luxury | |||||
BMW | 8 | % | 9 | % | |
Mercedes-Benz | 7 | % | 8 | % | |
Lexus | 7 | % | 7 | % | |
Acura | 5 | % | 5 | % | |
Infiniti | 4 | % | 4 | % | |
Other luxury | 6 | % | 5 | % | |
Total luxury | 37 | % | 38 | % | |
Mid-Line Imports: | |||||
Honda | 16 | % | 18 | % | |
Nissan | 12 | % | 12 | % | |
Toyota | 12 | % | 12 | % | |
Other imports | 5 | % | 6 | % | |
Total imports | 45 | % | 48 | % | |
Mid-Line Domestic: | |||||
Ford | 10 | % | 8 | % | |
Dodge | 3 | % | 3 | % | |
Chevrolet | 2 | % | 2 | % | |
Other domestics | 3 | % | 1 | % | |
Total domestic | 18 | % | 14 | % | |
Total New Vehicle Revenue | 100 | % | 100 | % |
For the Three Months Ended March 31, | Increase (Decrease) | % of Gross Profit Decrease | ||||||||||||||||||
2015 | % of Gross Profit | 2014 | % of Gross Profit | |||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
SG&A, excluding rent expense | $ | 168.0 | 65.5 | % | $ | 152.2 | 66.1 | % | $ | 15.8 | (0.6 | )% | ||||||||
Rent expense | 7.7 | 3.0 | % | 7.6 | 3.3 | % | 0.1 | (0.3 | )% | |||||||||||
SG&A-total | $ | 175.7 | 68.5 | % | $ | 159.8 | 69.4 | % | $ | 15.9 | (0.9 | )% | ||||||||
Gross profit | $ | 256.4 | $ | 230.1 |
For the Twelve Months Ended | |||||||
March 31, 2015 | December 31, 2014 | ||||||
(Dollars in millions) | |||||||
Adjusted leverage ratio: | |||||||
Long-term debt (including current portion) | $ | 690.7 | $ | 707.4 | |||
Calculation of earnings before interest, taxes, depreciation and amortization ("EBITDA"): | |||||||
Income from continuing operations | $ | 116.4 | $ | 112.0 | |||
Add: | |||||||
Depreciation and amortization | 27.4 | 26.4 | |||||
Income tax expense | 73.6 | 71.0 | |||||
Swap and other interest expense | 42.0 | 40.9 | |||||
Earnings before interest, taxes, depreciation and amortization ("EBITDA") | $ | 259.4 | $ | 250.3 | |||
Non-core items - expense: | |||||||
Loss on extinguishment of long-term debt | 31.9 | 31.9 | |||||
Total non-core items | 31.9 | 31.9 | |||||
Adjusted EBITDA | $ | 291.3 | $ | 282.2 | |||
Adjusted leverage ratio | 2.4 | 2.5 |