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 October 21, 2015. |
ASBURY AUTOMOTIVE GROUP, INC. | |||
Date: October 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 October 21, 2015. |
• | Total revenues increased 14% to $1.7 billion |
• | New vehicle revenue up 17%; gross profit up 6% |
• | Used vehicle retail revenue up 10%; gross profit up 8% |
• | Finance and insurance revenue up 17% |
• | Parts and service revenue up 13%; gross profit up 12% |
• | Total gross profit increased 11% |
• | SG&A expense as a percent of gross profit improved 90 basis points to 69.2% |
• | Income from operations increased 16% |
• | Operating margin as a percentage of revenue improved 10 basis points to 4.5% |
• | Repurchased $104 million of common stock |
For the Three Months Ended September 30, | Increase (Decrease) | % Change | ||||||||||||
2015 | 2014 | |||||||||||||
REVENUE: | ||||||||||||||
New vehicle | $ | 964.0 | $ | 821.3 | $ | 142.7 | 17 | % | ||||||
Used vehicle: | ||||||||||||||
Retail | 438.8 | 399.6 | 39.2 | 10 | % | |||||||||
Wholesale | 54.2 | 57.4 | (3.2 | ) | (6 | )% | ||||||||
Total used vehicle | 493.0 | 457.0 | 36.0 | 8 | % | |||||||||
Parts and service | 190.6 | 168.3 | 22.3 | 13 | % | |||||||||
Finance and insurance, net | 68.8 | 59.0 | 9.8 | 17 | % | |||||||||
TOTAL REVENUE | 1,716.4 | 1,505.6 | 210.8 | 14 | % | |||||||||
GROSS PROFIT: | ||||||||||||||
New vehicle | 52.3 | 49.2 | 3.1 | 6 | % | |||||||||
Used vehicle: | ||||||||||||||
Retail | 35.2 | 32.6 | 2.6 | 8 | % | |||||||||
Wholesale | (1.8 | ) | (1.4 | ) | (0.4 | ) | 29 | % | ||||||
Total used vehicle | 33.4 | 31.2 | 2.2 | 7 | % | |||||||||
Parts and service | 118.2 | 105.2 | 13.0 | 12 | % | |||||||||
Finance and insurance, net | 68.8 | 59.0 | 9.8 | 17 | % | |||||||||
TOTAL GROSS PROFIT | 272.7 | 244.6 | 28.1 | 11 | % | |||||||||
OPERATING EXPENSES: | ||||||||||||||
Selling, general and administrative | 188.8 | 171.5 | 17.3 | 10 | % | |||||||||
Depreciation and amortization | 7.5 | 6.7 | 0.8 | 12 | % | |||||||||
Other operating (income) expense, net | (0.2 | ) | 0.3 | (0.5 | ) | NM | ||||||||
INCOME FROM OPERATIONS | 76.6 | 66.1 | 10.5 | 16 | % | |||||||||
OTHER (INCOME) EXPENSES: | ||||||||||||||
Floor plan interest expense | 4.1 | 3.0 | 1.1 | 37 | % | |||||||||
Other interest expense, net | 10.7 | 9.6 | 1.1 | 11 | % | |||||||||
Swap interest expense | 1.0 | 0.5 | 0.5 | 100 | % | |||||||||
Gain on divestitures | (21.4 | ) | — | (21.4 | ) | NM | ||||||||
Total other (income) expenses, net | (5.6 | ) | 13.1 | (18.7 | ) | (143 | )% | |||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 82.2 | 53.0 | 29.2 | 55 | % | |||||||||
Income tax expense | 31.0 | 20.6 | 10.4 | 50 | % | |||||||||
INCOME FROM CONTINUING OPERATIONS | 51.2 | 32.4 | 18.8 | 58 | % | |||||||||
Discontinued operations, net of tax | (0.1 | ) | 0.1 | (0.2 | ) | (200 | )% | |||||||
NET INCOME | $ | 51.1 | $ | 32.5 | $ | 18.6 | 57 | % | ||||||
EARNINGS PER COMMON SHARE: | ||||||||||||||
Basic— | ||||||||||||||
Continuing operations | $ | 1.98 | $ | 1.09 | $ | 0.89 | 82 | % | ||||||
Discontinued operations | (0.01 | ) | — | (0.01 | ) | — | % | |||||||
Net income | $ | 1.97 | $ | 1.09 | $ | 0.88 | 81 | % | ||||||
Diluted— | ||||||||||||||
Continuing operations | $ | 1.96 | $ | 1.08 | $ | 0.88 | 81 | % | ||||||
Discontinued operations | — | — | — | — | % | |||||||||
Net income | $ | 1.96 | $ | 1.08 | $ | 0.88 | 81 | % | ||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||||||||
Basic | 25.9 | 29.8 | (3.9 | ) | (13 | )% | ||||||||
Restricted stock | 0.1 | 0.1 | — | — | % | |||||||||
Performance share units | 0.1 | 0.1 | — | — | % | |||||||||
Diluted | 26.1 | 30.0 | (3.9 | ) | (13 | )% |
For the Three Months Ended September 30, | Increase (Decrease) | % Change | ||||||||||||
2015 | 2014 | |||||||||||||
Unit sales | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | 6,381 | 5,939 | 442 | 7 | % | |||||||||
Mid-line import | 16,501 | 15,457 | 1,044 | 7 | % | |||||||||
Mid-line domestic | 5,482 | 3,258 | 2,224 | 68 | % | |||||||||
Total new vehicle | 28,364 | 24,654 | 3,710 | 15 | % | |||||||||
Used vehicle retail | 21,306 | 19,625 | 1,681 | 9 | % | |||||||||
Used to new ratio | 75.1 | % | 79.6 | % | (450) bps | |||||||||
Average selling price | ||||||||||||||
New vehicle | $ | 33,987 | $ | 33,313 | $ | 674 | 2 | % | ||||||
Used vehicle retail | 20,595 | 20,362 | 233 | 1 | % | |||||||||
Average gross profit per unit | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | $ | 3,197 | $ | 3,620 | $ | (423 | ) | (12 | )% | |||||
Mid-line import | 1,242 | 1,359 | (117 | ) | (9 | )% | ||||||||
Mid-line domestic | 2,080 | 2,056 | 24 | 1 | % | |||||||||
Total new vehicle | 1,844 | 1,996 | (152 | ) | (8 | )% | ||||||||
Used vehicle | 1,652 | 1,661 | (9 | ) | (1 | )% | ||||||||
Finance and insurance, net | 1,385 | 1,332 | 53 | 4 | % | |||||||||
Front end yield (1) | 3,147 | 3,180 | (33 | ) | (1 | )% | ||||||||
Gross margin | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | 6.3 | % | 7.2 | % | (90) bps | |||||||||
Mid-line import | 4.6 | % | 5.1 | % | (50) bps | |||||||||
Mid-line domestic | 5.7 | % | 6.0 | % | (30) bps | |||||||||
Total new vehicle | 5.4 | % | 6.0 | % | (60) bps | |||||||||
Used vehicle retail | 8.0 | % | 8.2 | % | (20) bps | |||||||||
Parts and service | 62.0 | % | 62.5 | % | (50) bps | |||||||||
Gross profit margin | 15.9 | % | 16.2 | % | (30) bps | |||||||||
SG&A metrics | ||||||||||||||
Rent expense | $ | 8.0 | $ | 7.8 | $ | 0.2 | 3 | % | ||||||
SG&A, excluding rent expense as a percent of gross profit | 66.3 | % | 66.9 | % | (60) bps | |||||||||
Total SG&A as a percentage of gross profit | 69.2 | % | 70.1 | % | (90) bps | |||||||||
Operating metrics | ||||||||||||||
Income from operations as a percentage of revenue | 4.5 | % | 4.4 | % | 10 bps | |||||||||
Income from operations as a percentage of gross profit | 28.1 | % | 27.0 | % | 110 bps | |||||||||
Revenue mix | ||||||||||||||
New vehicle | 56.2 | % | 54.5 | % | ||||||||||
Used vehicle retail | 25.5 | % | 26.6 | % | ||||||||||
Used vehicle wholesale | 3.2 | % | 3.8 | % | ||||||||||
Parts and service | 11.1 | % | 11.2 | % | ||||||||||
Finance and insurance | 4.0 | % | 3.9 | % | ||||||||||
Total revenue | 100.0 | % | 100.0 | % | ||||||||||
Gross profit mix | ||||||||||||||
New vehicle | 19.2 | % | 20.1 | % | ||||||||||
Used vehicle retail | 13.0 | % | 13.4 | % | ||||||||||
Used vehicle wholesale | (0.7 | )% | (0.6 | )% | ||||||||||
Parts and service | 43.3 | % | 43.0 | % | ||||||||||
Finance and insurance | 25.2 | % | 24.1 | % | ||||||||||
Total gross profit | 100.0 | % | 100.0 | % |
(1) | Front end yield is calculated as gross profit from new vehicles, used retail vehicles and finance and insurance (net), divided by combined new and used retail sales. |
For the Three Months Ended September 30, | Increase (Decrease) | % Change | ||||||||||||
2015 | 2014 | |||||||||||||
Revenue | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | $ | 321.8 | $ | 290.2 | $ | 31.6 | 11 | % | ||||||
Mid-line import | 431.6 | 405.1 | 26.5 | 7 | % | |||||||||
Mid-line domestic | 137.1 | 112.1 | 25.0 | 22 | % | |||||||||
Total new vehicle | 890.5 | 807.4 | 83.1 | 10 | % | |||||||||
Used Vehicle: | ||||||||||||||
Retail | 407.0 | 391.8 | 15.2 | 4 | % | |||||||||
Wholesale | 50.8 | 56.1 | (5.3 | ) | (9 | )% | ||||||||
Total used vehicle | 457.8 | 447.9 | 9.9 | 2 | % | |||||||||
Parts and service | 181.3 | 163.9 | 17.4 | 11 | % | |||||||||
Finance and insurance | 62.5 | 58.2 | 4.3 | 7 | % | |||||||||
Total revenue | $ | 1,592.1 | $ | 1,477.4 | $ | 114.7 | 8 | % | ||||||
Gross profit | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | $ | 20.4 | $ | 20.8 | $ | (0.4 | ) | (2 | )% | |||||
Mid-line import | 20.0 | 20.7 | (0.7 | ) | (3 | )% | ||||||||
Mid-line domestic | 7.8 | 6.7 | 1.1 | 16 | % | |||||||||
Total new vehicle | 48.2 | 48.2 | — | — | % | |||||||||
Used Vehicle: | ||||||||||||||
Retail | 32.7 | 32.0 | 0.7 | 2 | % | |||||||||
Wholesale | (1.7 | ) | (1.4 | ) | (0.3 | ) | (21 | )% | ||||||
Total used vehicle | 31.0 | 30.6 | 0.4 | 1 | % | |||||||||
Parts and service: | ||||||||||||||
Customer pay | 60.8 | 57.5 | 3.3 | 6 | % | |||||||||
Reconditioning and preparation | 29.1 | 27.2 | 1.9 | 7 | % | |||||||||
Warranty | 17.4 | 13.4 | 4.0 | 30 | % | |||||||||
Wholesale parts | 5.1 | 4.9 | 0.2 | 4 | % | |||||||||
Total parts and service | 112.4 | 103.0 | 9.4 | 9 | % | |||||||||
Finance and insurance | 62.5 | 58.2 | 4.3 | 7 | % | |||||||||
Total gross profit | $ | 254.1 | $ | 240.0 | $ | 14.1 | 6 | % | ||||||
SG&A expense | $ | 177.4 | $ | 168.3 | $ | 9.1 | 5 | % | ||||||
SG&A expense as a percentage of gross profit | 69.8 | % | 70.1 | % | (30) bps |
For the Three Months Ended September 30, | Increase (Decrease) | % Change | ||||||||||||
2015 | 2014 | |||||||||||||
Unit sales | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | 6,371 | 5,740 | 631 | 11 | % | |||||||||
Mid-line import | 16,096 | 15,326 | 770 | 5 | % | |||||||||
Mid-line domestic | 3,763 | 3,258 | 505 | 16 | % | |||||||||
Total new vehicle | 26,230 | 24,324 | 1,906 | 8 | % | |||||||||
Used vehicle retail | 19,649 | 19,303 | 346 | 2 | % | |||||||||
Used to new ratio | 74.9 | % | 79.4 | % | (450) bps | |||||||||
Average selling price | ||||||||||||||
New vehicle | $ | 33,950 | $ | 33,194 | $ | 756 | 2 | % | ||||||
Used vehicle retail | 20,714 | 20,297 | 417 | 2 | % | |||||||||
Average gross profit per unit | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | $ | 3,202 | $ | 3,624 | $ | (422 | ) | (12 | )% | |||||
Mid-line import | 1,243 | 1,351 | (108 | ) | (8 | )% | ||||||||
Mid-line domestic | 2,073 | 2,056 | 17 | 1 | % | |||||||||
Total new vehicle | 1,838 | 1,982 | (144 | ) | (7 | )% | ||||||||
Used vehicle | 1,664 | 1,658 | 6 | — | % | |||||||||
Finance and insurance, net | 1,362 | 1,334 | 28 | 2 | % | |||||||||
Front end yield (1) | 3,126 | 3,172 | (46 | ) | (1 | )% | ||||||||
Gross margin | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | 6.3 | % | 7.2 | % | (90) bps | |||||||||
Mid-line import | 4.6 | % | 5.1 | % | (50) bps | |||||||||
Mid-line domestic | 5.7 | % | 6.0 | % | (30) bps | |||||||||
Total new vehicle | 5.4 | % | 6.0 | % | (60) bps | |||||||||
Used vehicle retail | 8.0 | % | 8.2 | % | (20) bps | |||||||||
Parts and service | 62.0 | % | 62.8 | % | (80) bps | |||||||||
Gross profit margin | 16.0 | % | 16.2 | % | (20) bps |
(1) | Front end yield is calculated as gross profit from new vehicles, used retail vehicles and finance and insurance (net), divided by combined new and used retail sales. |
For the Nine Months Ended September 30, | Increase (Decrease) | % Change | ||||||||||||
2015 | 2014 | |||||||||||||
REVENUE: | ||||||||||||||
New vehicle | $ | 2,720.7 | $ | 2,378.8 | $ | 341.9 | 14 | % | ||||||
Used vehicle: | ||||||||||||||
Retail | 1,309.8 | 1,159.9 | 149.9 | 13 | % | |||||||||
Wholesale | 164.2 | 159.3 | 4.9 | 3 | % | |||||||||
Total used vehicle | 1,474.0 | 1,319.2 | 154.8 | 12 | % | |||||||||
Parts and service | 555.5 | 495.9 | 59.6 | 12 | % | |||||||||
Finance and insurance, net | 197.6 | 170.8 | 26.8 | 16 | % | |||||||||
TOTAL REVENUE | 4,947.8 | 4,364.7 | 583.1 | 13 | % | |||||||||
GROSS PROFIT: | ||||||||||||||
New vehicle | 152.5 | 146.4 | 6.1 | 4 | % | |||||||||
Used vehicle: | ||||||||||||||
Retail | 105.6 | 99.5 | 6.1 | 6 | % | |||||||||
Wholesale | (3.2 | ) | (0.9 | ) | (2.3 | ) | 256 | % | ||||||
Total used vehicle | 102.4 | 98.6 | 3.8 | 4 | % | |||||||||
Parts and service | 347.9 | 306.8 | 41.1 | 13 | % | |||||||||
Finance and insurance, net | 197.6 | 170.8 | 26.8 | 16 | % | |||||||||
TOTAL GROSS PROFIT | 800.4 | 722.6 | 77.8 | 11 | % | |||||||||
OPERATING EXPENSES: | ||||||||||||||
Selling, general and administrative | 546.4 | 500.5 | 45.9 | 9 | % | |||||||||
Depreciation and amortization | 22.0 | 19.4 | 2.6 | 13 | % | |||||||||
Other operating (income) expense, net | 0.1 | 0.2 | (0.1 | ) | NM | |||||||||
INCOME FROM OPERATIONS | 231.9 | 202.5 | 29.4 | 15 | % | |||||||||
OTHER (INCOME) EXPENSES: | ||||||||||||||
Floor plan interest expense | 12.0 | 9.3 | 2.7 | 29 | % | |||||||||
Other interest expense, net | 31.5 | 28.2 | 3.3 | 12 | % | |||||||||
Swap interest expense | 2.0 | 1.5 | 0.5 | 33 | % | |||||||||
Gain on divestitures | (21.4 | ) | — | (21.4 | ) | NM | ||||||||
Total other (income) expenses, net | 24.1 | 39.0 | (14.9 | ) | (38 | )% | ||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 207.8 | 163.5 | 44.3 | 27 | % | |||||||||
Income tax expense | 79.6 | 63.4 | 16.2 | 26 | % | |||||||||
INCOME FROM CONTINUING OPERATIONS | 128.2 | 100.1 | 28.1 | 28 | % | |||||||||
Discontinued operations, net of tax | (0.1 | ) | (0.3 | ) | 0.2 | (67 | )% | |||||||
NET INCOME | $ | 128.1 | $ | 99.8 | $ | 28.3 | 28 | % | ||||||
EARNINGS PER COMMON SHARE: | ||||||||||||||
Basic— | ||||||||||||||
Continuing operations | $ | 4.80 | $ | 3.31 | $ | 1.49 | 45 | % | ||||||
Discontinued operations | — | (0.01 | ) | 0.01 | (100 | )% | ||||||||
Net income | $ | 4.80 | $ | 3.30 | $ | 1.50 | 45 | % | ||||||
Diluted— | ||||||||||||||
Continuing operations | $ | 4.77 | $ | 3.29 | $ | 1.48 | 45 | % | ||||||
Discontinued operations | (0.01 | ) | (0.01 | ) | — | — | % | |||||||
Net income | $ | 4.76 | $ | 3.28 | $ | 1.48 | 45 | % | ||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||||||||
Basic | 26.7 | 30.2 | (3.5 | ) | (12 | )% | ||||||||
Restricted stock | 0.1 | 0.1 | — | — | % | |||||||||
Performance share units | 0.1 | 0.1 | — | — | % | |||||||||
Diluted | 26.9 | 30.4 | (3.5 | ) | (12 | )% |
For the Nine Months Ended September 30, | Increase (Decrease) | % Change | ||||||||||||
2015 | 2014 | |||||||||||||
Unit sales | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | 18,632 | 17,291 | 1,341 | 8 | % | |||||||||
Mid-line import | 47,052 | 43,941 | 3,111 | 7 | % | |||||||||
Mid-line domestic | 14,137 | 10,115 | 4,022 | 40 | % | |||||||||
Total new vehicle | 79,821 | 71,347 | 8,474 | 12 | % | |||||||||
Used vehicle retail | 63,164 | 56,968 | 6,196 | 11 | % | |||||||||
Used to new ratio | 79.1 | % | 79.8 | % | (70) bps | |||||||||
Average selling price | ||||||||||||||
New vehicle | $ | 34,085 | $ | 33,341 | $ | 744 | 2 | % | ||||||
Used vehicle retail | 20,736 | 20,361 | 375 | 2 | % | |||||||||
Average gross profit per unit | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | $ | 3,413 | $ | 3,701 | $ | (288 | ) | (8 | )% | |||||
Mid-line import | 1,262 | 1,400 | (138 | ) | (10 | )% | ||||||||
Mid-line domestic | 2,087 | 2,066 | 21 | 1 | % | |||||||||
Total new vehicle | 1,911 | 2,052 | (141 | ) | (7 | )% | ||||||||
Used vehicle | 1,672 | 1,747 | (75 | ) | (4 | )% | ||||||||
Finance and insurance, net | 1,382 | 1,331 | 51 | 4 | % | |||||||||
Front end yield (1) | 3,187 | 3,247 | (60 | ) | (2 | )% | ||||||||
Gross margin | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | 6.7 | % | 7.3 | % | (60) bps | |||||||||
Mid-line import | 4.7 | % | 5.3 | % | (60) bps | |||||||||
Mid-line domestic | 5.8 | % | 6.2 | % | (40) bps | |||||||||
Total new vehicle | 5.6 | % | 6.2 | % | (60) bps | |||||||||
Used vehicle retail | 8.1 | % | 8.6 | % | (50) bps | |||||||||
Parts and service | 62.6 | % | 61.9 | % | 70 bps | |||||||||
Gross profit margin | 16.2 | % | 16.6 | % | (40) bps | |||||||||
SG&A metrics | ||||||||||||||
Rent expense | $ | 23.5 | $ | 23.2 | $ | 0.3 | 1 | % | ||||||
SG&A, excluding rent expense as a percent of gross profit | 65.3 | % | 66.1 | % | (80) bps | |||||||||
Total SG&A as a percentage of gross profit | 68.3 | % | 69.3 | % | (100) bps | |||||||||
Operating metrics | ||||||||||||||
Income from operations as a percentage of revenue | 4.7 | % | 4.6 | % | 10 bps | |||||||||
Income from operations as a percentage of gross profit | 29.0 | % | 28.0 | % | 100 bps | |||||||||
Revenue mix | ||||||||||||||
New vehicle | 55.0 | % | 54.5 | % | ||||||||||
Used vehicle retail | 26.5 | % | 26.6 | % | ||||||||||
Used vehicle wholesale | 3.3 | % | 3.6 | % | ||||||||||
Parts and service | 11.2 | % | 11.4 | % | ||||||||||
Finance and insurance | 4.0 | % | 3.9 | % | ||||||||||
Total revenue | 100.0 | % | 100.0 | % | ||||||||||
Gross profit mix | ||||||||||||||
New vehicle | 19.1 | % | 20.3 | % | ||||||||||
Used vehicle retail | 13.1 | % | 13.7 | % | ||||||||||
Used vehicle wholesale | (0.4 | )% | (0.1 | )% | ||||||||||
Parts and service | 43.5 | % | 42.5 | % | ||||||||||
Finance and insurance | 24.7 | % | 23.6 | % | ||||||||||
Total gross profit | 100.0 | % | 100.0 | % |
(1) | Front end yield is calculated as gross profit from new vehicles, used retail vehicles and finance and insurance (net), divided by combined new and used retail sales. |
For the Nine Months Ended September 30, | Increase (Decrease) | % Change | ||||||||||||
2015 | 2014 | |||||||||||||
Revenue | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | $ | 928.1 | $ | 847.7 | $ | 80.4 | 9 | % | ||||||
Mid-line import | 1,225.7 | 1,151 | 74.7 | 6 | % | |||||||||
Mid-line domestic | 373.6 | 337.2 | 36.4 | 11 | % | |||||||||
Total new vehicle | 2,527.4 | 2,335.9 | 191.5 | 8 | % | |||||||||
Used Vehicle: | ||||||||||||||
Retail | 1,204.0 | 1,138.1 | 65.9 | 6 | % | |||||||||
Wholesale | 151.4 | 156.4 | (5.0 | ) | (3 | )% | ||||||||
Total used vehicle | 1,355.4 | 1,294.5 | 60.9 | 5 | % | |||||||||
Parts and service | 525.9 | 482.7 | 43.2 | 9 | % | |||||||||
Finance and insurance | 181.3 | 168.5 | 12.8 | 8 | % | |||||||||
Total revenue | $ | 4,590.0 | $ | 4,281.6 | $ | 308.4 | 7 | % | ||||||
Gross profit | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | $ | 62.5 | $ | 61.8 | $ | 0.7 | 1 | % | ||||||
Mid-line import | 57.1 | 60.9 | (3.8 | ) | (6 | )% | ||||||||
Mid-line domestic | 22.0 | 20.9 | 1.1 | 5 | % | |||||||||
Total new vehicle | 141.6 | 143.6 | (2.0 | ) | (1 | )% | ||||||||
Used Vehicle: | ||||||||||||||
Retail | 98.1 | 98.0 | 0.1 | — | % | |||||||||
Wholesale | (2.8 | ) | (0.9 | ) | (1.9 | ) | 211 | % | ||||||
Total used vehicle | 95.3 | 97.1 | (1.8 | ) | (2 | )% | ||||||||
Parts and service: | ||||||||||||||
Customer pay | 179.3 | 170.6 | 8.7 | 5 | % | |||||||||
Reconditioning and preparation | 85.5 | 75.5 | 10.0 | 13 | % | |||||||||
Warranty | 49.4 | 38.6 | 10.8 | 28 | % | |||||||||
Wholesale parts | 15.2 | 15.0 | 0.2 | 1 | % | |||||||||
Total parts and service | 329.4 | 299.7 | 29.7 | 10 | % | |||||||||
Finance and insurance | 181.3 | 168.5 | 12.8 | 8 | % | |||||||||
Total gross profit | $ | 747.6 | $ | 708.9 | $ | 38.7 | 5 | % | ||||||
SG&A expense | $ | 512.6 | $ | 490.9 | $ | 21.7 | 4 | % | ||||||
SG&A expense as a percentage of gross profit | 68.6 | % | 69.2 | % | (60) bps |
For the Nine Months Ended September 30, | Increase (Decrease) | % Change | ||||||||||||
2015 | 2014 | |||||||||||||
Unit sales | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | 18,254 | 16,667 | 1,587 | 10 | % | |||||||||
Mid-line import | 45,604 | 43,575 | 2,029 | 5 | % | |||||||||
Mid-line domestic | 10,500 | 10,115 | 385 | 4 | % | |||||||||
Total new vehicle | 74,358 | 70,357 | 4,001 | 6 | % | |||||||||
Used vehicle retail | 57,977 | 56,053 | 1,924 | 3 | % | |||||||||
Used to new ratio | 78.0 | % | 79.7 | % | (170) bps | |||||||||
Average selling price | ||||||||||||||
New vehicle | $ | 33,990 | $ | 33,201 | $ | 789 | 2 | % | ||||||
Used vehicle retail | 20,767 | 20,304 | 463 | 2 | % | |||||||||
Average gross profit per unit | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | $ | 3,424 | $ | 3,708 | $ | (284 | ) | (8 | )% | |||||
Mid-line import | 1,252 | 1,398 | (146 | ) | (10 | )% | ||||||||
Mid-line domestic | 2,095 | 2,066 | 29 | 1 | % | |||||||||
Total new vehicle | 1,904 | 2,041 | (137 | ) | (7 | )% | ||||||||
Used vehicle | 1,692 | 1,748 | (56 | ) | (3 | )% | ||||||||
Finance and insurance, net | 1,370 | 1,333 | 37 | 3 | % | |||||||||
Front end yield (1) | 3,181 | 3,244 | (63 | ) | (2 | )% | ||||||||
Gross margin | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | 6.7 | % | 7.3 | % | (60) bps | |||||||||
Mid-line import | 4.7 | % | 5.3 | % | (60) bps | |||||||||
Mid-line domestic | 5.9 | % | 6.2 | % | (30) bps | |||||||||
Total new vehicle | 5.6 | % | 6.1 | % | (50) bps | |||||||||
Used vehicle retail | 8.1 | % | 8.6 | % | (50) bps | |||||||||
Parts and service | 62.6 | % | 62.1 | % | 50 bps | |||||||||
Gross profit margin | 16.3 | % | 16.6 | % | (30) bps |
(1) | Front end yield is calculated as gross profit from new vehicles, used retail vehicles and finance and insurance (net), divided by combined new and used retail sales. |
September 30, 2015 | December 31, 2014 | Increase (Decrease) | % Change | |||||||||||
SELECTED BALANCE SHEET DATA | ||||||||||||||
Cash and cash equivalents | $ | 3.9 | $ | 2.9 | $ | 1.0 | 34 | % | ||||||
New vehicle inventory | 696.4 | 699.5 | (3.1 | ) | — | % | ||||||||
Used vehicle inventory | 147.1 | 141.7 | 5.4 | 4 | % | |||||||||
Parts inventory | 44.1 | 44.8 | (0.7 | ) | (2 | )% | ||||||||
Total current assets | 1,282.0 | 1,276.7 | 5.3 | — | % | |||||||||
Floor plan notes payable | 837.9 | 766.8 | 71.1 | 9 | % | |||||||||
Total current liabilities | 1,146.6 | 1,041.1 | 105.5 | 10 | % | |||||||||
CAPITALIZATION: | ||||||||||||||
Long-term debt (including current portion) | $ | 761.7 | $ | 707.4 | $ | 54.3 | 8 | % | ||||||
Shareholders' equity | 314.5 | 444.9 | (130.4 | ) | (29 | )% | ||||||||
Total | $ | 1,076.2 | $ | 1,152.3 | $ | (76.1 | ) | (7 | )% |
September 30, 2015 | December 31, 2014 | September 30, 2014 | ||||||
DAYS SUPPLY | ||||||||
New vehicle inventory | 72 | 63 | 74 | |||||
Used vehicle inventory | 36 | 35 | 34 |
For the Nine Months Ended September 30, | |||||
2015 | 2014 | ||||
Luxury: | |||||
BMW | 8 | % | 9 | % | |
Mercedes-Benz | 7 | % | 7 | % | |
Lexus | 6 | % | 7 | % | |
Acura | 5 | % | 5 | % | |
Infiniti | 3 | % | 4 | % | |
Other luxury | 6 | % | 5 | % | |
Total luxury | 35 | % | 37 | % | |
Mid-Line Imports: | |||||
Honda | 16 | % | 18 | % | |
Nissan | 12 | % | 12 | % | |
Toyota | 12 | % | 13 | % | |
Other imports | 6 | % | 6 | % | |
Total imports | 46 | % | 49 | % | |
Mid-Line Domestic: | |||||
Ford | 11 | % | 7 | % | |
Dodge | 3 | % | 2 | % | |
Chevrolet | 3 | % | 2 | % | |
Other domestics | 2 | % | 3 | % | |
Total domestic | 19 | % | 14 | % | |
Total New Vehicle Revenue | 100 | % | 100 | % |
For the Twelve Months Ended | |||||||
September 30, 2015 | June 30, 2015 | ||||||
(Dollars in millions) | |||||||
Adjusted leverage ratio: | |||||||
Long-term debt (including current portion) | $ | 761.7 | $ | 770.9 | |||
Calculation of earnings before interest, taxes, depreciation and amortization ("EBITDA"): | |||||||
Income from continuing operations | $ | 140.2 | $ | 121.4 | |||
Add: | |||||||
Depreciation and amortization | 28.9 | 28.2 | |||||
Income tax expense | 87.1 | 76.8 | |||||
Swap and other interest expense | 44.6 | 43.0 | |||||
Earnings before interest, taxes, depreciation and amortization ("EBITDA") | $ | 300.8 | $ | 269.4 | |||
Non-core items - expense: | |||||||
Gain on divestitures | $ | (21.4 | ) | $ | — | ||
Loss on extinguishment of long-term debt | 31.9 | 31.9 | |||||
Total non-core items | 10.5 | 31.9 | |||||
Adjusted EBITDA | $ | 311.3 | $ | 301.3 | |||
Adjusted leverage ratio | 2.4 | 2.6 |
For the Three Months Ended September 30, | |||||||
2015 | 2014 | ||||||
(In millions, except per share data) | |||||||
Adjusted income from continuing operations: | |||||||
Net income | $ | 51.1 | $ | 32.5 | |||
Discontinued operations, net of tax | 0.1 | (0.1 | ) | ||||
Income from continuing operations | 51.2 | 32.4 | |||||
Non-core items - income: | |||||||
Gain on divestitures (net of $8.3 million of tax) | (13.1 | ) | — | ||||
Income tax benefit | (0.8 | ) | — | ||||
Total non-core items | (13.9 | ) | — | ||||
Adjusted income from continuing operations | $ | 37.3 | $ | 32.4 | |||
Adjusted diluted earnings per share (EPS) from continuing operations: | |||||||
Net income | $ | 1.96 | $ | 1.08 | |||
Discontinued operations, net of tax | — | — | |||||
Income from continuing operations | $ | 1.96 | $ | 1.08 | |||
Total non-core items | (0.53 | ) | — | ||||
Adjusted diluted EPS from continuing operations | $ | 1.43 | $ | 1.08 | |||
Weighted average common shares outstanding - diluted | 26.1 | 30.0 |
For the Nine Months Ended September 30, | |||||||
2015 | 2014 | ||||||
(In millions, except per share data) | |||||||
Adjusted income from continuing operations: | |||||||
Net income | $ | 128.1 | $ | 99.8 | |||
Discontinued operations, net of tax | 0.1 | 0.3 | |||||
Income from continuing operations | 128.2 | 100.1 | |||||
Non-core items - income: | |||||||
Gain on divestitures (net of $8.3 million of tax) | (13.1 | ) | — | ||||
Income tax benefit | (0.8 | ) | — | ||||
Total non-core items | (13.9 | ) | — | ||||
Adjusted income from continuing operations | $ | 114.3 | $ | 100.1 | |||
Adjusted diluted earnings per share (EPS) from continuing operations: | |||||||
Net income | $ | 4.76 | $ | 3.28 | |||
Discontinued operations, net of tax | 0.01 | 0.01 | |||||
Income from continuing operations | $ | 4.77 | $ | 3.29 | |||
Total non-core items | (0.52 | ) | — | ||||
Adjusted diluted EPS from continuing operations | $ | 4.25 | $ | 3.29 | |||
Weighted average common shares outstanding - diluted | 26.9 | 30.4 |