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 4, 2016. |
ASBURY AUTOMOTIVE GROUP, INC. | |||
Date: February 4, 2016 | 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 February 4, 2016. |
• | Total revenues increased 9% to $1.6 billion |
• | New vehicle revenue up 9%; gross profit down 3% |
• | Used vehicle retail revenue up 9%; gross profit was flat |
• | Finance and insurance revenue up 13% |
• | Parts and service revenue up 8%; gross profit up 9% |
• | Total gross profit increased 6% |
• | SG&A expense as a percent of gross profit increased 50 basis points to 70.5% |
• | Income from operations increased 6% |
• | Income from operations as a percentage of revenue was 4.2% |
• | In October 2015, issued an additional $200 million of our 6.0% Senior Subordinated Notes due in 2024 |
• | Repurchased $44 million of common stock during Q4 and $304 million for the full year 2015 |
• | Sold two Nissan franchises, one VW franchise, and one Mazda franchise |
• | In January 2016, the Board reset our total share repurchase authorization to $300 million |
For the Three Months Ended December 31, | Increase (Decrease) | % Change | ||||||||||||
2015 | 2014 | |||||||||||||
REVENUE: | ||||||||||||||
New vehicle | $ | 931.8 | $ | 851.8 | $ | 80.0 | 9 | % | ||||||
Used vehicle: | ||||||||||||||
Retail | 407.7 | 375.0 | 32.7 | 9 | % | |||||||||
Wholesale | 50.0 | 47.3 | 2.7 | 6 | % | |||||||||
Total used vehicle | 457.7 | 422.3 | 35.4 | 8 | % | |||||||||
Parts and service | 185.2 | 170.7 | 14.5 | 8 | % | |||||||||
Finance and insurance, net | 65.8 | 58.2 | 7.6 | 13 | % | |||||||||
TOTAL REVENUE | 1,640.5 | 1,503.0 | 137.5 | 9 | % | |||||||||
GROSS PROFIT: | ||||||||||||||
New vehicle | 50.5 | 51.9 | (1.4 | ) | (3 | )% | ||||||||
Used vehicle: | ||||||||||||||
Retail | 30.5 | 30.5 | — | — | % | |||||||||
Wholesale | (1.1 | ) | (1.4 | ) | 0.3 | (21 | )% | |||||||
Total used vehicle | 29.4 | 29.1 | 0.3 | 1 | % | |||||||||
Parts and service | 114.7 | 105.4 | 9.3 | 9 | % | |||||||||
Finance and insurance, net | 65.8 | 58.2 | 7.6 | 13 | % | |||||||||
TOTAL GROSS PROFIT | 260.4 | 244.6 | 15.8 | 6 | % | |||||||||
OPERATING EXPENSES: | ||||||||||||||
Selling, general and administrative | 183.5 | 171.1 | 12.4 | 7 | % | |||||||||
Depreciation and amortization | 7.5 | 7.0 | 0.5 | 7 | % | |||||||||
Other operating (income) expense, net | (0.3 | ) | 0.8 | (1.1 | ) | (138 | )% | |||||||
INCOME FROM OPERATIONS | 69.7 | 65.7 | 4.0 | 6 | % | |||||||||
OTHER (INCOME) EXPENSES: | ||||||||||||||
Floor plan interest expense | 4.1 | 3.1 | 1.0 | 32 | % | |||||||||
Other interest expense, net | 12.5 | 10.7 | 1.8 | 17 | % | |||||||||
Swap interest expense | 1.0 | 0.5 | 0.5 | 100 | % | |||||||||
Loss on extinguishment of long-term debt, net | — | 31.9 | (31.9 | ) | (100 | )% | ||||||||
Gain on divestitures | (13.5 | ) | — | (13.5 | ) | NM | ||||||||
Total other (income) expenses, net | 4.1 | 46.2 | (42.1 | ) | (91 | )% | ||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 65.6 | 19.5 | 46.1 | 236 | % | |||||||||
Income tax expense | 24.4 | 7.6 | 16.8 | 221 | % | |||||||||
INCOME FROM CONTINUING OPERATIONS | 41.2 | 11.9 | 29.3 | 246 | % | |||||||||
Discontinued operations, net of tax | (0.1 | ) | (0.1 | ) | — | — | % | |||||||
NET INCOME | $ | 41.1 | $ | 11.8 | $ | 29.3 | 248 | % | ||||||
EARNINGS PER COMMON SHARE: | ||||||||||||||
Basic— | ||||||||||||||
Continuing operations | $ | 1.65 | $ | 0.41 | $ | 1.24 | 302 | % | ||||||
Discontinued operations | — | — | — | — | % | |||||||||
Net income | $ | 1.65 | $ | 0.41 | $ | 1.24 | 302 | % | ||||||
Diluted— | ||||||||||||||
Continuing operations | $ | 1.65 | $ | 0.41 | $ | 1.24 | 302 | % | ||||||
Discontinued operations | (0.01 | ) | (0.01 | ) | — | — | % | |||||||
Net income | $ | 1.64 | $ | 0.40 | $ | 1.24 | 310 | % | ||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||||||||
Basic | 24.9 | 29.0 | (4.1 | ) | (14 | )% | ||||||||
Restricted stock | — | 0.1 | (0.1 | ) | (100 | )% | ||||||||
Performance share units | 0.1 | 0.2 | (0.1 | ) | (50 | )% | ||||||||
Diluted | 25.0 | 29.3 | (4.3 | ) | (15 | )% |
For the Three Months Ended December 31, | Increase (Decrease) | % Change | ||||||||||||
2015 | 2014 | |||||||||||||
Unit sales | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | 6,809 | 6,984 | (175 | ) | (3 | )% | ||||||||
Import | 14,581 | 14,039 | 542 | 4 | % | |||||||||
Domestic | 4,770 | 3,194 | 1,576 | 49 | % | |||||||||
Total new vehicle | 26,160 | 24,217 | 1,943 | 8 | % | |||||||||
Used vehicle retail | 19,425 | 18,205 | 1,220 | 7 | % | |||||||||
Used to new ratio | 74.3 | % | 75.2 | % | (90) bps | |||||||||
Average selling price | ||||||||||||||
New vehicle | $ | 35,619 | $ | 35,174 | $ | 445 | 1 | % | ||||||
Used vehicle retail | 20,988 | 20,599 | 389 | 2 | % | |||||||||
Average gross profit per unit | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | $ | 3,466 | $ | 3,823 | $ | (357 | ) | (9 | )% | |||||
Import | 1,228 | 1,268 | (40 | ) | (3 | )% | ||||||||
Domestic | 1,887 | 2,317 | (430 | ) | (19 | )% | ||||||||
Total new vehicle | 1,930 | 2,143 | (213 | ) | (10 | )% | ||||||||
Used vehicle | 1,570 | 1,675 | (105 | ) | (6 | )% | ||||||||
Finance and insurance, net | 1,443 | 1,372 | 71 | 5 | % | |||||||||
Front end yield (1) | 3,220 | 3,314 | (94 | ) | (3 | )% | ||||||||
Gross margin | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | 6.7 | % | 7.4 | % | (70) bps | |||||||||
Import | 4.5 | % | 4.7 | % | (20) bps | |||||||||
Domestic | 5.1 | % | 6.6 | % | (150) bps | |||||||||
Total new vehicle | 5.4 | % | 6.1 | % | (70) bps | |||||||||
Used vehicle retail | 7.5 | % | 8.1 | % | (60) bps | |||||||||
Parts and service | 61.9 | % | 61.7 | % | 20 bps | |||||||||
Gross profit margin | 15.9 | % | 16.3 | % | (40) bps | |||||||||
SG&A metrics | ||||||||||||||
Rent expense | $ | 7.8 | $ | 7.7 | $ | 0.1 | 1 | % | ||||||
SG&A, excluding rent expense as a percent of gross profit | 67.5 | % | 66.8 | % | 70 bps | |||||||||
Total SG&A as a percentage of gross profit | 70.5 | % | 70.0 | % | 50 bps | |||||||||
Operating metrics | ||||||||||||||
Income from operations as a percentage of revenue | 4.2 | % | 4.4 | % | (20) bps | |||||||||
Income from operations as a percentage of gross profit | 26.8 | % | 26.9 | % | (10) bps | |||||||||
Revenue mix | ||||||||||||||
New vehicle | 56.8 | % | 56.7 | % | ||||||||||
Used vehicle retail | 24.9 | % | 24.9 | % | ||||||||||
Used vehicle wholesale | 3.0 | % | 3.1 | % | ||||||||||
Parts and service | 11.3 | % | 11.4 | % | ||||||||||
Finance and insurance | 4.0 | % | 3.9 | % | ||||||||||
Total revenue | 100.0 | % | 100.0 | % | ||||||||||
Gross profit mix | ||||||||||||||
New vehicle | 19.4 | % | 21.2 | % | ||||||||||
Used vehicle retail | 11.7 | % | 12.5 | % | ||||||||||
Used vehicle wholesale | (0.4 | )% | (0.6 | )% | ||||||||||
Parts and service | 44.0 | % | 43.1 | % | ||||||||||
Finance and insurance | 25.3 | % | 23.8 | % | ||||||||||
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 December 31, | Increase (Decrease) | % Change | ||||||||||||
2015 | 2014 | |||||||||||||
Revenue | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | $ | 353.9 | $ | 348.0 | $ | 5.9 | 2 | % | ||||||
Import | 383.0 | 358.0 | 25.0 | 7 | % | |||||||||
Domestic | 134.5 | 112.9 | 21.6 | 19 | % | |||||||||
Total new vehicle | 871.4 | 818.9 | 52.5 | 6 | % | |||||||||
Used Vehicle: | ||||||||||||||
Retail | 384.3 | 361.3 | 23.0 | 6 | % | |||||||||
Wholesale | 47.0 | 45.1 | 1.9 | 4 | % | |||||||||
Total used vehicle | 431.3 | 406.4 | 24.9 | 6 | % | |||||||||
Parts and service | 175.8 | 163.8 | 12.0 | 7 | % | |||||||||
Finance and insurance | 60.7 | 55.9 | 4.8 | 9 | % | |||||||||
Total revenue | $ | 1,539.2 | $ | 1,445.0 | $ | 94.2 | 7 | % | ||||||
Gross profit | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | $ | 23.6 | $ | 25.7 | $ | (2.1 | ) | (8 | )% | |||||
Import | 17.0 | 16.7 | 0.3 | 2 | % | |||||||||
Domestic | 7.0 | 7.4 | (0.4 | ) | (5 | )% | ||||||||
Total new vehicle | 47.6 | 49.8 | (2.2 | ) | (4 | )% | ||||||||
Used Vehicle: | ||||||||||||||
Retail | 28.8 | 29.6 | (0.8 | ) | (3 | )% | ||||||||
Wholesale | (0.9 | ) | (1.3 | ) | 0.4 | 31 | % | |||||||
Total used vehicle | 27.9 | 28.3 | (0.4 | ) | (1 | )% | ||||||||
Parts and service: | ||||||||||||||
Customer pay | 60.0 | 56.9 | 3.1 | 5 | % | |||||||||
Reconditioning and preparation | 27.3 | 24.3 | 3.0 | 12 | % | |||||||||
Warranty | 16.5 | 15.3 | 1.2 | 8 | % | |||||||||
Wholesale parts | 5.0 | 4.8 | 0.2 | 4 | % | |||||||||
Total parts and service | 108.8 | 101.3 | 7.5 | 7 | % | |||||||||
Finance and insurance | 60.7 | 55.9 | 4.8 | 9 | % | |||||||||
Total gross profit | $ | 245.0 | $ | 235.3 | $ | 9.7 | 4 | % | ||||||
SG&A expense | $ | 172.9 | $ | 164.5 | $ | 8.4 | 5 | % | ||||||
SG&A expense as a percentage of gross profit | 70.6 | % | 69.9 | % | 70 bps |
For the Three Months Ended December 31, | Increase (Decrease) | % Change | ||||||||||||
2015 | 2014 | |||||||||||||
Unit sales | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | 6,809 | 6,751 | 58 | 1 | % | |||||||||
Import | 13,891 | 13,304 | 587 | 4 | % | |||||||||
Domestic | 3,662 | 3,194 | 468 | 15 | % | |||||||||
Total new vehicle | 24,362 | 23,249 | 1,113 | 5 | % | |||||||||
Used vehicle retail | 18,191 | 17,511 | 680 | 4 | % | |||||||||
Used to new ratio | 74.7 | % | 75.3 | % | (60) bps | |||||||||
Average selling price | ||||||||||||||
New vehicle | $ | 35,769 | $ | 35,223 | $ | 546 | 2 | % | ||||||
Used vehicle retail | 21,126 | 20,633 | 493 | 2 | % | |||||||||
Average gross profit per unit | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | $ | 3,466 | $ | 3,807 | $ | (341 | ) | (9 | )% | |||||
Import | 1,224 | 1,255 | (31 | ) | (2 | )% | ||||||||
Domestic | 1,912 | 2,317 | (405 | ) | (17 | )% | ||||||||
Total new vehicle | 1,954 | 2,142 | (188 | ) | (9 | )% | ||||||||
Used vehicle | 1,583 | 1,690 | (107 | ) | (6 | )% | ||||||||
Finance and insurance, net | 1,426 | 1,371 | 55 | 4 | % | |||||||||
Front end yield (1) | 3,222 | 3,319 | (97 | ) | (3 | )% | ||||||||
Gross margin | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | 6.7 | % | 7.4 | % | (70) bps | |||||||||
Import | 4.4 | % | 4.7 | % | (30) bps | |||||||||
Domestic | 5.2 | % | 6.6 | % | (140) bps | |||||||||
Total new vehicle | 5.5 | % | 6.1 | % | (60) bps | |||||||||
Used vehicle retail | 7.5 | % | 8.2 | % | (70) bps | |||||||||
Parts and service | 61.9 | % | 61.8 | % | 10 bps | |||||||||
Gross profit margin | 15.9 | % | 16.3 | % | (40) 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 Twelve Months Ended December 31, | Increase (Decrease) | % Change | ||||||||||||
2015 | 2014 | |||||||||||||
REVENUE: | ||||||||||||||
New vehicle | $ | 3,652.5 | $ | 3,230.6 | $ | 421.9 | 13 | % | ||||||
Used vehicle: | ||||||||||||||
Retail | 1,717.5 | 1,534.9 | 182.6 | 12 | % | |||||||||
Wholesale | 214.2 | 206.6 | 7.6 | 4 | % | |||||||||
Total used vehicle | 1,931.7 | 1,741.5 | 190.2 | 11 | % | |||||||||
Parts and service | 740.7 | 666.6 | 74.1 | 11 | % | |||||||||
Finance and insurance, net | 263.4 | 229.0 | 34.4 | 15 | % | |||||||||
TOTAL REVENUE | 6,588.3 | 5,867.7 | 720.6 | 12 | % | |||||||||
GROSS PROFIT: | ||||||||||||||
New vehicle | 203.0 | 198.3 | 4.7 | 2 | % | |||||||||
Used vehicle: | ||||||||||||||
Retail | 136.1 | 130.0 | 6.1 | 5 | % | |||||||||
Wholesale | (4.3 | ) | (2.3 | ) | (2.0 | ) | 87 | % | ||||||
Total used vehicle | 131.8 | 127.7 | 4.1 | 3 | % | |||||||||
Parts and service | 462.6 | 412.2 | 50.4 | 12 | % | |||||||||
Finance and insurance, net | 263.4 | 229.0 | 34.4 | 15 | % | |||||||||
TOTAL GROSS PROFIT | 1,060.8 | 967.2 | 93.6 | 10 | % | |||||||||
OPERATING EXPENSES: | ||||||||||||||
Selling, general and administrative | 729.9 | 671.6 | 58.3 | 9 | % | |||||||||
Depreciation and amortization | 29.5 | 26.4 | 3.1 | 12 | % | |||||||||
Other operating (income) expense, net | (0.2 | ) | 1.0 | (1.2 | ) | (120 | )% | |||||||
INCOME FROM OPERATIONS | 301.6 | 268.2 | 33.4 | 12 | % | |||||||||
OTHER (INCOME) EXPENSES: | ||||||||||||||
Floor plan interest expense | 16.1 | 12.4 | 3.7 | 30 | % | |||||||||
Other interest expense, net | 44.0 | 38.9 | 5.1 | 13 | % | |||||||||
Swap interest expense | 3.0 | 2.0 | 1.0 | 50 | % | |||||||||
Loss on extinguishment of long-term debt, net | — | 31.9 | (31.9 | ) | (100 | )% | ||||||||
Gain on divestitures | (34.9 | ) | — | (34.9 | ) | NM | ||||||||
Total other (income) expenses, net | 28.2 | 85.2 | (57.0 | ) | (67 | )% | ||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 273.4 | 183.0 | 90.4 | 49 | % | |||||||||
Income tax expense | 104.0 | 71.0 | 33.0 | 46 | % | |||||||||
INCOME FROM CONTINUING OPERATIONS | 169.4 | 112.0 | 57.4 | 51 | % | |||||||||
Discontinued operations, net of tax | (0.2 | ) | (0.4 | ) | 0.2 | (50 | )% | |||||||
NET INCOME | $ | 169.2 | $ | 111.6 | $ | 57.6 | 52 | % | ||||||
EARNINGS PER COMMON SHARE: | ||||||||||||||
Basic— | ||||||||||||||
Continuing operations | $ | 6.44 | $ | 3.75 | $ | 2.69 | 72 | % | ||||||
Discontinued operations | (0.01 | ) | (0.02 | ) | 0.01 | (50 | )% | |||||||
Net income | $ | 6.43 | $ | 3.73 | $ | 2.70 | 72 | % | ||||||
Diluted— | ||||||||||||||
Continuing operations | $ | 6.42 | $ | 3.72 | $ | 2.70 | 73 | % | ||||||
Discontinued operations | (0.01 | ) | (0.01 | ) | — | — | % | |||||||
Net income | $ | 6.41 | $ | 3.71 | $ | 2.70 | 73 | % | ||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||||||||
Basic | 26.3 | 29.9 | (3.6 | ) | (12 | )% | ||||||||
Restricted stock | — | 0.1 | (0.1 | ) | (100 | )% | ||||||||
Performance share units | 0.1 | 0.1 | — | — | % | |||||||||
Diluted | 26.4 | 30.1 | (3.7 | ) | (12 | )% |
For the Twelve Months Ended December 31, | Increase (Decrease) | % Change | ||||||||||||
2015 | 2014 | |||||||||||||
Unit sales | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | 25,441 | 24,275 | 1,166 | 5 | % | |||||||||
Import | 61,633 | 57,980 | 3,653 | 6 | % | |||||||||
Domestic | 18,907 | 13,309 | 5,598 | 42 | % | |||||||||
Total new vehicle | 105,981 | 95,564 | 10,417 | 11 | % | |||||||||
Used vehicle retail | 82,589 | 75,173 | 7,416 | 10 | % | |||||||||
Used to new ratio | 77.9 | % | 78.7 | % | (80) bps | |||||||||
Average selling price | ||||||||||||||
New vehicle | $ | 34,464 | $ | 33,806 | $ | 658 | 2 | % | ||||||
Used vehicle retail | 20,796 | 20,418 | 378 | 2 | % | |||||||||
Average gross profit per unit | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | $ | 3,428 | $ | 3,736 | $ | (308 | ) | (8 | )% | |||||
Import | 1,254 | 1,368 | (114 | ) | (8 | )% | ||||||||
Domestic | 2,036 | 2,126 | (90 | ) | (4 | )% | ||||||||
Total new vehicle | 1,915 | 2,075 | (160 | ) | (8 | )% | ||||||||
Used vehicle | 1,648 | 1,729 | (81 | ) | (5 | )% | ||||||||
Finance and insurance, net | 1,397 | 1,341 | 56 | 4 | % | |||||||||
Front end yield (1) | 3,195 | 3,264 | (69 | ) | (2 | )% | ||||||||
Gross margin | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | 6.7 | % | 7.3 | % | (60) bps | |||||||||
Import | 4.6 | % | 5.2 | % | (60) bps | |||||||||
Domestic | 5.6 | % | 6.3 | % | (70) bps | |||||||||
Total new vehicle | 5.6 | % | 6.1 | % | (50) bps | |||||||||
Used vehicle retail | 7.9 | % | 8.5 | % | (60) bps | |||||||||
Parts and service | 62.5 | % | 61.8 | % | 70 bps | |||||||||
Gross profit margin | 16.1 | % | 16.5 | % | (40) bps | |||||||||
SG&A metrics | ||||||||||||||
Rent expense | $ | 31.3 | $ | 30.8 | $ | 0.5 | 2 | % | ||||||
SG&A, excluding rent expense as a percent of gross profit | 65.9 | % | 66.3 | % | (40) bps | |||||||||
Total SG&A as a percentage of gross profit | 68.8 | % | 69.4 | % | (60) bps | |||||||||
Operating metrics | ||||||||||||||
Income from operations as a percentage of revenue | 4.6 | % | 4.6 | % | — | |||||||||
Income from operations as a percentage of gross profit | 28.4 | % | 27.7 | % | 70 bps | |||||||||
Revenue mix | ||||||||||||||
New vehicle | 55.4 | % | 55.1 | % | ||||||||||
Used vehicle retail | 26.1 | % | 26.1 | % | ||||||||||
Used vehicle wholesale | 3.3 | % | 3.5 | % | ||||||||||
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 | % | 20.5 | % | ||||||||||
Used vehicle retail | 12.9 | % | 13.4 | % | ||||||||||
Used vehicle wholesale | (0.4 | )% | (0.2 | )% | ||||||||||
Parts and service | 43.6 | % | 42.6 | % | ||||||||||
Finance and insurance | 24.8 | % | 23.7 | % | ||||||||||
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 Twelve Months Ended December 31, | Increase (Decrease) | % Change | ||||||||||||
2015 | 2014 | |||||||||||||
Revenue | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | $ | 1,281.9 | $ | 1,195.7 | $ | 86.2 | 7 | % | ||||||
Import | 1,556.9 | 1,451.5 | 105.4 | 7 | % | |||||||||
Domestic | 508.1 | 450.1 | 58.0 | 13 | % | |||||||||
Total new vehicle | 3,346.9 | 3,097.3 | 249.6 | 8 | % | |||||||||
Used Vehicle: | ||||||||||||||
Retail | 1,564.9 | 1,470.2 | 94.7 | 6 | % | |||||||||
Wholesale | 194.7 | 194.9 | (0.2 | ) | — | % | ||||||||
Total used vehicle | 1,759.6 | 1,665.1 | 94.5 | 6 | % | |||||||||
Parts and service | 693.8 | 638.8 | 55.0 | 9 | % | |||||||||
Finance and insurance | 237.8 | 219.3 | 18.5 | 8 | % | |||||||||
Total revenue | $ | 6,038.1 | $ | 5,620.5 | $ | 417.6 | 7 | % | ||||||
Gross profit | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | $ | 86.1 | $ | 87.4 | $ | (1.3 | ) | (1 | )% | |||||
Import | 72.3 | 74.9 | (2.6 | ) | (3 | )% | ||||||||
Domestic | 28.9 | 28.3 | 0.6 | 2 | % | |||||||||
Total new vehicle | 187.3 | 190.6 | (3.3 | ) | (2 | )% | ||||||||
Used Vehicle: | ||||||||||||||
Retail | 125.2 | 124.9 | 0.3 | — | % | |||||||||
Wholesale | (3.4 | ) | (2.1 | ) | (1.3 | ) | 62 | % | ||||||
Total used vehicle | 121.8 | 122.8 | (1.0 | ) | (1 | )% | ||||||||
Parts and service: | ||||||||||||||
Customer pay | 237.3 | 225.5 | 11.8 | 5 | % | |||||||||
Reconditioning and preparation | 110.4 | 97.7 | 12.7 | 13 | % | |||||||||
Warranty | 64.9 | 52.9 | 12.0 | 23 | % | |||||||||
Wholesale parts | 19.8 | 19.4 | 0.4 | 2 | % | |||||||||
Total parts and service | 432.4 | 395.5 | 36.9 | 9 | % | |||||||||
Finance and insurance | 237.8 | 219.3 | 18.5 | 8 | % | |||||||||
Total gross profit | $ | 979.3 | $ | 928.2 | $ | 51.1 | 6 | % | ||||||
SG&A expense | $ | 675.0 | $ | 644.5 | $ | 30.5 | 5 | % | ||||||
SG&A expense as a percentage of gross profit | 68.9 | % | 69.4 | % | (50) bps |
For the Twelve Months Ended December 31, | Increase (Decrease) | % Change | ||||||||||||
2015 | 2014 | |||||||||||||
Unit sales | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | 25,063 | 23,418 | 1,645 | 7 | % | |||||||||
Import | 57,562 | 54,636 | 2,926 | 5 | % | |||||||||
Domestic | 14,162 | 13,309 | 853 | 6 | % | |||||||||
Total new vehicle | 96,787 | 91,363 | 5,424 | 6 | % | |||||||||
Used vehicle retail | 74,715 | 71,833 | 2,882 | 4 | % | |||||||||
Used to new ratio | 77.2 | % | 78.6 | % | (140) bps | |||||||||
Average selling price | ||||||||||||||
New vehicle | $ | 34,580 | $ | 33,901 | $ | 679 | 2 | % | ||||||
Used vehicle retail | 20,945 | 20,467 | 478 | 2 | % | |||||||||
Average gross profit per unit | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | $ | 3,435 | $ | 3,732 | $ | (297 | ) | (8 | )% | |||||
Import | 1,256 | 1,371 | (115 | ) | (8 | )% | ||||||||
Domestic | 2,041 | 2,126 | (85 | ) | (4 | )% | ||||||||
Total new vehicle | 1,935 | 2,086 | (151 | ) | (7 | )% | ||||||||
Used vehicle | 1,676 | 1,739 | (63 | ) | (4 | )% | ||||||||
Finance and insurance, net | 1,387 | 1,344 | 43 | 3 | % | |||||||||
Front end yield (1) | 3,209 | 3,277 | (68 | ) | (2 | )% | ||||||||
Gross margin | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | 6.7 | % | 7.3 | % | (60) bps | |||||||||
Import | 4.6 | % | 5.2 | % | (60) bps | |||||||||
Domestic | 5.7 | % | 6.3 | % | (60) bps | |||||||||
Total new vehicle | 5.6 | % | 6.2 | % | (60) bps | |||||||||
Used vehicle retail | 8.0 | % | 8.5 | % | (50) bps | |||||||||
Parts and service | 62.3 | % | 61.9 | % | 40 bps | |||||||||
Gross profit margin | 16.2 | % | 16.5 | % | (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. |
December 31, 2015 | December 31, 2014 | Increase (Decrease) | % Change | |||||||||||
SELECTED BALANCE SHEET DATA | ||||||||||||||
Cash and cash equivalents | $ | 2.8 | $ | 2.9 | $ | (0.1 | ) | (3 | )% | |||||
New vehicle inventory | 739.2 | 699.5 | 39.7 | 6 | % | |||||||||
Used vehicle inventory | 134.1 | 141.7 | (7.6 | ) | (5 | )% | ||||||||
Parts inventory | 43.9 | 44.8 | (0.9 | ) | (2 | )% | ||||||||
Total current assets | 1,343.0 | 1,275.4 | 67.6 | 5 | % | |||||||||
Floor plan notes payable | 712.2 | 766.8 | (54.6 | ) | (7 | )% | ||||||||
Total current liabilities | 1,007.8 | 1,039.8 | (32.0 | ) | (3 | )% | ||||||||
CAPITALIZATION: | ||||||||||||||
Long-term debt (including current portion) | $ | 954.3 | $ | 697.4 | $ | 256.9 | 37 | % | ||||||
Shareholders' equity | 314.5 | 444.9 | (130.4 | ) | (29 | )% | ||||||||
Total | $ | 1,268.8 | $ | 1,142.3 | $ | 126.5 | 11 | % |
December 31, 2015 | December 31, 2014 | ||||
DAYS SUPPLY | |||||
New vehicle inventory | 62 | 63 | |||
Used vehicle inventory | 30 | 35 |
For the Year Ended December 31, | |||||
2015 | 2014 | ||||
Luxury: | |||||
BMW | 8 | % | 9 | % | |
Mercedes-Benz | 7 | % | 8 | % | |
Lexus | 7 | % | 7 | % | |
Acura | 5 | % | 5 | % | |
Infiniti | 3 | % | 4 | % | |
Other luxury | 6 | % | 5 | % | |
Total luxury | 36 | % | 38 | % | |
Imports: | |||||
Honda | 16 | % | 17 | % | |
Nissan | 12 | % | 12 | % | |
Toyota | 12 | % | 13 | % | |
Other imports | 6 | % | 6 | % | |
Total imports | 46 | % | 48 | % | |
Domestic: | |||||
Ford | 11 | % | 7 | % | |
Dodge | 2 | % | 2 | % | |
Chevrolet | 3 | % | 2 | % | |
Other domestics | 2 | % | 3 | % | |
Total domestic | 18 | % | 14 | % | |
Total New Vehicle Revenue | 100 | % | 100 | % |
For the Three Months Ended December 31, | |||||||
2015 | 2014 | ||||||
(In millions, except per share data) | |||||||
Adjusted income from continuing operations: | |||||||
Net income | $ | 41.1 | $ | 11.8 | |||
Discontinued operations, net of tax | 0.1 | 0.1 | |||||
Income from continuing operations | 41.2 | 11.9 | |||||
Non-core items - income: | |||||||
Gain on divestitures (net of $5.1 million of tax) | (8.4 | ) | — | ||||
Loss on extinguishment of long-term debt | — | 31.9 | |||||
Income tax benefit | — | (12.4 | ) | ||||
Total non-core items | (8.4 | ) | 19.5 | ||||
Adjusted income from continuing operations | $ | 32.8 | $ | 31.4 | |||
Adjusted diluted earnings per share (EPS) from continuing operations: | |||||||
Net income | $ | 1.64 | $ | 0.40 | |||
Discontinued operations, net of tax | 0.01 | 0.01 | |||||
Income from continuing operations | $ | 1.65 | $ | 0.41 | |||
Total non-core items | (0.34 | ) | 0.66 | ||||
Adjusted diluted EPS from continuing operations | $ | 1.31 | $ | 1.07 | |||
Weighted average common shares outstanding - diluted | 25.0 | 29.3 |
For the Twelve Months Ended December 31, | |||||||
2015 | 2014 | ||||||
(In millions, except per share data) | |||||||
Adjusted income from continuing operations: | |||||||
Net income | $ | 169.2 | $ | 111.6 | |||
Discontinued operations, net of tax | 0.2 | 0.4 | |||||
Income from continuing operations | 169.4 | 112.0 | |||||
Non-core items - income: | |||||||
Gain on divestitures (net of $13.3 million of tax) | (21.6 | ) | — | ||||
Loss on extinguishment of long-term debt | — | 31.9 | |||||
Income tax benefit | (0.8 | ) | (12.4 | ) | |||
Total non-core items | (22.4 | ) | 19.5 | ||||
Adjusted income from continuing operations | $ | 147.0 | $ | 131.5 | |||
Adjusted diluted earnings per share (EPS) from continuing operations: | |||||||
Net income | $ | 6.41 | $ | 3.71 | |||
Discontinued operations, net of tax | 0.01 | 0.01 | |||||
Income from continuing operations | $ | 6.42 | $ | 3.72 | |||
Total non-core items | (0.85 | ) | 0.65 | ||||
Adjusted diluted EPS from continuing operations | $ | 5.57 | $ | 4.37 | |||
Weighted average common shares outstanding - diluted | 26.4 | 30.1 |