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 7, 2017. |
ASBURY AUTOMOTIVE GROUP, INC. | |||
Date: February 7, 2017 | 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 7, 2017. |
• | Total revenues increased 5%; gross profit increased 5% |
• | New vehicle revenue increased 3%; gross profit down 5% |
• | Used vehicle retail revenue up 7%; gross profit up 1% |
• | Finance and insurance revenue up 8% |
• | Parts and service revenue up 8%; gross profit up 9% |
• | SG&A as a percentage of gross profit improved 120 basis points to 69.3% |
• | Total company adjusted income from operations (a non-GAAP measure) as a percentage of revenue was 4.4%, up 20 basis points |
• | Adjusted EPS from continuing operations up 19% |
• | Repurchased $50 million of common stock during Q4 and $212 million for the full year 2016 |
• | Exited the Arkansas market; sold four stores representing five franchises in Q4 2016 |
• | Acquired a Chevy franchise and an Isuzu truck franchise in Indianapolis, Indiana in Q1 2017 |
For the Three Months Ended December 31, | Increase (Decrease) | % Change | ||||||||||||
2016 | 2015 | |||||||||||||
REVENUE: | ||||||||||||||
New vehicle | $ | 935.6 | $ | 931.8 | $ | 3.8 | — | % | ||||||
Used vehicle: | ||||||||||||||
Retail | 420.3 | 407.7 | 12.6 | 3 | % | |||||||||
Wholesale | 48.6 | 50.0 | (1.4 | ) | (3 | )% | ||||||||
Total used vehicle | 468.9 | 457.7 | 11.2 | 2 | % | |||||||||
Parts and service | 193.6 | 185.2 | 8.4 | 5 | % | |||||||||
Finance and insurance, net | 68.4 | 65.8 | 2.6 | 4 | % | |||||||||
TOTAL REVENUE | 1,666.5 | 1,640.5 | 26.0 | 2 | % | |||||||||
GROSS PROFIT: | ||||||||||||||
New vehicle | 47.4 | 50.5 | (3.1 | ) | (6 | )% | ||||||||
Used vehicle: | ||||||||||||||
Retail | 29.6 | 30.5 | (0.9 | ) | (3 | )% | ||||||||
Wholesale | (2.1 | ) | (1.1 | ) | (1.0 | ) | (91 | )% | ||||||
Total used vehicle | 27.5 | 29.4 | (1.9 | ) | (6 | )% | ||||||||
Parts and service | 121.3 | 114.7 | 6.6 | 6 | % | |||||||||
Finance and insurance, net | 68.4 | 65.8 | 2.6 | 4 | % | |||||||||
TOTAL GROSS PROFIT | 264.6 | 260.4 | 4.2 | 2 | % | |||||||||
OPERATING EXPENSES (INCOME): | ||||||||||||||
Selling, general and administrative | 183.3 | 183.5 | (0.2 | ) | — | % | ||||||||
Depreciation and amortization | 7.7 | 7.5 | 0.2 | 3 | % | |||||||||
Other operating income, net | (6.5 | ) | (0.3 | ) | (6.2 | ) | NM | |||||||
INCOME FROM OPERATIONS | 80.1 | 69.7 | 10.4 | 15 | % | |||||||||
OTHER (INCOME) EXPENSES: | ||||||||||||||
Floor plan interest expense | 4.9 | 4.1 | 0.8 | 20 | % | |||||||||
Other interest expense, net | 13.1 | 12.5 | 0.6 | 5 | % | |||||||||
Swap interest expense | 0.7 | 1.0 | (0.3 | ) | (30 | )% | ||||||||
Gain on divestitures | (45.5 | ) | (13.5 | ) | (32.0 | ) | NM | |||||||
Total other (income) expenses, net | (26.8 | ) | 4.1 | (30.9 | ) | NM | ||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 106.9 | 65.6 | 41.3 | 63 | % | |||||||||
Income tax expense | 39.8 | 24.4 | 15.4 | 63 | % | |||||||||
INCOME FROM CONTINUING OPERATIONS | 67.1 | 41.2 | 25.9 | 63 | % | |||||||||
Discontinued operations, net of tax | — | (0.1 | ) | 0.1 | (100 | )% | ||||||||
NET INCOME | $ | 67.1 | $ | 41.1 | $ | 26.0 | 63 | % | ||||||
EARNINGS PER COMMON SHARE: | ||||||||||||||
Basic— | ||||||||||||||
Continuing operations | $ | 3.11 | $ | 1.65 | $ | 1.46 | 88 | % | ||||||
Discontinued operations | — | — | — | — | % | |||||||||
Net income | $ | 3.11 | $ | 1.65 | $ | 1.46 | 88 | % | ||||||
Diluted— | ||||||||||||||
Continuing operations | $ | 3.08 | $ | 1.65 | $ | 1.43 | 87 | % | ||||||
Discontinued operations | — | (0.01 | ) | 0.01 | — | % | ||||||||
Net income | $ | 3.08 | $ | 1.64 | $ | 1.44 | 88 | % | ||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||||||||
Basic | 21.6 | 24.9 | (3.3 | ) | (13 | )% | ||||||||
Restricted stock | 0.1 | — | 0.1 | — | % | |||||||||
Performance share units | 0.1 | 0.1 | — | — | % | |||||||||
Diluted | 21.8 | 25.0 | (3.2 | ) | (13 | )% |
For the Three Months Ended December 31, | Increase (Decrease) | % Change | ||||||||||||
2016 | 2015 | |||||||||||||
Unit sales | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | 6,406 | 6,809 | (403 | ) | (6 | )% | ||||||||
Import | 14,652 | 14,581 | 71 | — | % | |||||||||
Domestic | 4,693 | 4,770 | (77 | ) | (2 | )% | ||||||||
Total new vehicle | 25,751 | 26,160 | (409 | ) | (2 | )% | ||||||||
Used vehicle retail | 19,881 | 19,425 | 456 | 2 | % | |||||||||
Used to new ratio | 77.2 | % | 74.3 | % | 290 bps | |||||||||
Average selling price | ||||||||||||||
New vehicle | $ | 36,333 | $ | 35,619 | $ | 714 | 2 | % | ||||||
Used vehicle retail | 21,141 | 20,988 | 153 | 1 | % | |||||||||
Average gross profit per unit | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | $ | 3,590 | $ | 3,466 | $ | 124 | 4 | % | ||||||
Import | 1,099 | 1,228 | (129 | ) | (11 | )% | ||||||||
Domestic | 1,769 | 1,887 | (118 | ) | (6 | )% | ||||||||
Total new vehicle | 1,841 | 1,930 | (89 | ) | (5 | )% | ||||||||
Used vehicle | 1,489 | 1,570 | (81 | ) | (5 | )% | ||||||||
Finance and insurance, net | 1,499 | 1,443 | 56 | 4 | % | |||||||||
Front end yield (1) | 3,186 | 3,220 | (34 | ) | (1 | )% | ||||||||
Gross margin | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | 6.7 | % | 6.7 | % | — | |||||||||
Import | 3.9 | % | 4.5 | % | (60) bps | |||||||||
Domestic | 4.6 | % | 5.1 | % | (50) bps | |||||||||
Total new vehicle | 5.1 | % | 5.4 | % | (30) bps | |||||||||
Used vehicle retail | 7.0 | % | 7.5 | % | (50) bps | |||||||||
Parts and service | 62.7 | % | 61.9 | % | 80 bps | |||||||||
Total gross profit margin | 15.9 | % | 15.9 | % | — | |||||||||
SG&A metrics | ||||||||||||||
Rent expense | $ | 7.0 | $ | 7.8 | $ | (0.8 | ) | (10 | )% | |||||
Total SG&A as a percentage of gross profit | 69.3 | % | 70.5 | % | (120) bps | |||||||||
SG&A, excluding rent expense as a percentage of gross profit | 66.6 | % | 67.5 | % | (90) bps | |||||||||
Operating metrics | ||||||||||||||
Income from operations as a percentage of revenue | 4.8 | % | 4.2 | % | 60 bps | |||||||||
Income from operations as a percentage of gross profit | 30.3 | % | 26.8 | % | 350 bps | |||||||||
Adjusted income from operations as a percentage of revenue | 4.4 | % | 4.2 | % | 20 bps | |||||||||
Adjusted income from operations as a percentage of gross profit | 28.0 | % | 26.8 | % | 120 bps | |||||||||
Revenue mix | ||||||||||||||
New vehicle | 56.1 | % | 56.8 | % | ||||||||||
Used vehicle retail | 25.3 | % | 24.9 | % | ||||||||||
Used vehicle wholesale | 2.9 | % | 3.0 | % | ||||||||||
Parts and service | 11.6 | % | 11.3 | % | ||||||||||
Finance and insurance | 4.1 | % | 4.0 | % | ||||||||||
Total revenue | 100.0 | % | 100.0 | % | ||||||||||
Gross profit mix | ||||||||||||||
New vehicle | 17.9 | % | 19.4 | % | ||||||||||
Used vehicle retail | 11.2 | % | 11.7 | % | ||||||||||
Used vehicle wholesale | (0.8 | )% | (0.4 | )% | ||||||||||
Parts and service | 45.8 | % | 44.0 | % | ||||||||||
Finance and insurance | 25.9 | % | 25.3 | % | ||||||||||
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 unit sales. |
For the Three Months Ended December 31, | Increase (Decrease) | % Change | ||||||||||||
2016 | 2015 | |||||||||||||
Revenue | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | $ | 336.6 | $ | 345.6 | $ | (9.0 | ) | (3 | )% | |||||
Import | 403.0 | 375.0 | 28.0 | 7 | % | |||||||||
Domestic | 174.3 | 165.6 | 8.7 | 5 | % | |||||||||
Total new vehicle | 913.9 | 886.2 | 27.7 | 3 | % | |||||||||
Used Vehicle: | ||||||||||||||
Retail | 405.3 | 379.4 | 25.9 | 7 | % | |||||||||
Wholesale | 47.1 | 47.2 | (0.1 | ) | — | % | ||||||||
Total used vehicle | 452.4 | 426.6 | 25.8 | 6 | % | |||||||||
Parts and service | 187.8 | 174.0 | 13.8 | 8 | % | |||||||||
Finance and insurance | 66.9 | 61.9 | 5.0 | 8 | % | |||||||||
Total revenue | $ | 1,621.0 | $ | 1,548.7 | $ | 72.3 | 5 | % | ||||||
Gross profit | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | $ | 22.5 | $ | 22.9 | $ | (0.4 | ) | (2 | )% | |||||
Import | 15.6 | 17.0 | (1.4 | ) | (8 | )% | ||||||||
Domestic | 8.0 | 8.4 | (0.4 | ) | (5 | )% | ||||||||
Total new vehicle | 46.1 | 48.3 | (2.2 | ) | (5 | )% | ||||||||
Used Vehicle: | ||||||||||||||
Retail | 28.7 | 28.5 | 0.2 | 1 | % | |||||||||
Wholesale | (1.7 | ) | (0.8 | ) | (0.9 | ) | NM | |||||||
Total used vehicle | 27.0 | 27.7 | (0.7 | ) | (3 | )% | ||||||||
Parts and service: | ||||||||||||||
Customer pay | 64.8 | 59.3 | 5.5 | 9 | % | |||||||||
Warranty | 19.0 | 16.9 | 2.1 | 12 | % | |||||||||
Wholesale parts | 4.9 | 4.8 | 0.1 | 2 | % | |||||||||
Parts and service, excluding reconditioning and preparation | 88.7 | 81.0 | 7.7 | 10 | % | |||||||||
Reconditioning and preparation | 29.3 | 27.0 | 2.3 | 9 | % | |||||||||
Total parts and service | 118.0 | 108.0 | 10.0 | 9 | % | |||||||||
Finance and insurance | 66.9 | 61.9 | 5.0 | 8 | % | |||||||||
Total gross profit | $ | 258.0 | $ | 245.9 | $ | 12.1 | 5 | % | ||||||
SG&A expense | $ | 176.6 | $ | 171.8 | $ | 4.8 | 3 | % | ||||||
SG&A expense as a percentage of gross profit | 68.4 | % | 69.9 | % | (150) bps |
For the Three Months Ended December 31, | Increase (Decrease) | % Change | ||||||||||||
2016 | 2015 | |||||||||||||
Unit sales | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | 6,322 | 6,664 | (342 | ) | (5 | )% | ||||||||
Import | 14,381 | 13,641 | 740 | 5 | % | |||||||||
Domestic | 4,460 | 4,476 | (16 | ) | — | % | ||||||||
Total new vehicle | 25,163 | 24,781 | 382 | 2 | % | |||||||||
Used vehicle retail | 19,084 | 17,857 | 1,227 | 7 | % | |||||||||
Used to new ratio | 75.8 | % | 72.1 | % | 370 bps | |||||||||
Average selling price | ||||||||||||||
New vehicle | $ | 36,319 | $ | 35,761 | $ | 558 | 2 | % | ||||||
Used vehicle retail | 21,238 | 21,247 | (9 | ) | — | % | ||||||||
Average gross profit per unit | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | $ | 3,559 | $ | 3,436 | $ | 123 | 4 | % | ||||||
Import | 1,085 | 1,246 | (161 | ) | (13 | )% | ||||||||
Domestic | 1,794 | 1,877 | (83 | ) | (4 | )% | ||||||||
Total new vehicle | 1,832 | 1,949 | (117 | ) | (6 | )% | ||||||||
Used vehicle retail | 1,504 | 1,596 | (92 | ) | (6 | )% | ||||||||
Finance and insurance, net | 1,512 | 1,452 | 60 | 4 | % | |||||||||
Front end yield (1) | 3,202 | 3,253 | (51 | ) | (2 | )% | ||||||||
Gross margin | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | 6.7 | % | 6.6 | % | 10 bps | |||||||||
Import | 3.9 | % | 4.5 | % | (60) bps | |||||||||
Domestic | 4.6 | % | 5.1 | % | (50) bps | |||||||||
Total new vehicle | 5.0 | % | 5.5 | % | (50) bps | |||||||||
Used vehicle retail | 7.1 | % | 7.5 | % | (40) bps | |||||||||
Parts and service: | ||||||||||||||
Parts and service, excluding reconditioning and preparation | 47.2 | % | 46.6 | % | 60 bps | |||||||||
Parts and service, including reconditioning and preparation | 62.8 | % | 62.1 | % | 70 bps | |||||||||
Total gross profit margin | 15.9 | % | 15.9 | % | — |
(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 unit sales. |
For the Twelve Months Ended December 31, | Increase (Decrease) | % Change | ||||||||||||
2016 | 2015 | |||||||||||||
REVENUE: | ||||||||||||||
New vehicle | $ | 3,611.9 | $ | 3,652.5 | $ | (40.6 | ) | (1 | )% | |||||
Used vehicle: | ||||||||||||||
Retail | 1,675.0 | 1,717.5 | (42.5 | ) | (2 | )% | ||||||||
Wholesale | 201.4 | 214.2 | (12.8 | ) | (6 | )% | ||||||||
Total used vehicle | 1,876.4 | 1,931.7 | (55.3 | ) | (3 | )% | ||||||||
Parts and service | 778.5 | 740.7 | 37.8 | 5 | % | |||||||||
Finance and insurance, net | 261.0 | 263.4 | (2.4 | ) | (1 | )% | ||||||||
TOTAL REVENUE | 6,527.8 | 6,588.3 | (60.5 | ) | (1 | )% | ||||||||
GROSS PROFIT: | ||||||||||||||
New vehicle | 187.1 | 203.0 | (15.9 | ) | (8 | )% | ||||||||
Used vehicle: | ||||||||||||||
Retail | 131.0 | 136.1 | (5.1 | ) | (4 | )% | ||||||||
Wholesale | (3.7 | ) | (4.3 | ) | 0.6 | 14 | % | |||||||
Total used vehicle | 127.3 | 131.8 | (4.5 | ) | (3 | )% | ||||||||
Parts and service | 483.3 | 462.6 | 20.7 | 4 | % | |||||||||
Finance and insurance, net | 261.0 | 263.4 | (2.4 | ) | (1 | )% | ||||||||
TOTAL GROSS PROFIT | 1,058.7 | 1,060.8 | (2.1 | ) | — | % | ||||||||
OPERATING EXPENSES (INCOME): | ||||||||||||||
Selling, general and administrative | 732.5 | 729.9 | 2.6 | — | % | |||||||||
Depreciation and amortization | 30.7 | 29.5 | 1.2 | 4 | % | |||||||||
Other operating income, net | (2.3 | ) | (0.2 | ) | (2.1 | ) | NM | |||||||
INCOME FROM OPERATIONS | 297.8 | 301.6 | (3.8 | ) | (1 | )% | ||||||||
OTHER EXPENSES (INCOME): | ||||||||||||||
Floor plan interest expense | 19.3 | 16.1 | 3.2 | 20 | % | |||||||||
Other interest expense, net | 53.1 | 44.0 | 9.1 | 21 | % | |||||||||
Swap interest expense | 3.1 | 3.0 | 0.1 | 3 | % | |||||||||
Gain on divestitures | (45.5 | ) | (34.9 | ) | (10.6 | ) | (30 | )% | ||||||
Total other expenses (income), net | 30.0 | 28.2 | 1.8 | 6 | % | |||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 267.8 | 273.4 | (5.6 | ) | (2 | )% | ||||||||
Income tax expense | 100.6 | 104.0 | (3.4 | ) | (3 | )% | ||||||||
INCOME FROM CONTINUING OPERATIONS | 167.2 | 169.4 | (2.2 | ) | (1 | )% | ||||||||
Discontinued operations, net of tax | — | (0.2 | ) | 0.2 | 100 | % | ||||||||
NET INCOME | $ | 167.2 | $ | 169.2 | $ | (2.0 | ) | (1 | )% | |||||
EARNINGS PER COMMON SHARE: | ||||||||||||||
Basic— | ||||||||||||||
Continuing operations | $ | 7.43 | $ | 6.44 | $ | 0.99 | 15 | % | ||||||
Discontinued operations | — | (0.01 | ) | 0.01 | — | % | ||||||||
Net income | $ | 7.43 | $ | 6.43 | $ | 1.00 | 16 | % | ||||||
Diluted— | ||||||||||||||
Continuing operations | $ | 7.40 | $ | 6.42 | $ | 0.98 | 15 | % | ||||||
Discontinued operations | — | (0.01 | ) | 0.01 | 100 | % | ||||||||
Net income | $ | 7.40 | $ | 6.41 | $ | 0.99 | 15 | % | ||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||||||||
Basic | 22.5 | 26.3 | (3.8 | ) | (14 | )% | ||||||||
Restricted stock | — | — | — | — | % | |||||||||
Performance share units | 0.1 | 0.1 | — | — | % | |||||||||
Diluted | 22.6 | 26.4 | (3.8 | ) | (14 | )% |
For the Twelve Months Ended December 31, | Increase (Decrease) | % Change | ||||||||||||
2016 | 2015 | |||||||||||||
Unit sales | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | 23,875 | 25,441 | (1,566 | ) | (6 | )% | ||||||||
Import | 58,466 | 61,633 | (3,167 | ) | (5 | )% | ||||||||
Domestic | 20,019 | 18,907 | 1,112 | 6 | % | |||||||||
Total new vehicle | 102,360 | 105,981 | (3,621 | ) | (3 | )% | ||||||||
Used vehicle retail | 79,259 | 82,589 | (3,330 | ) | (4 | )% | ||||||||
Used to new ratio | 77.4 | % | 77.9 | % | (50) bps | |||||||||
Average selling price | ||||||||||||||
New vehicle | $ | 35,286 | $ | 34,464 | $ | 822 | 2 | % | ||||||
Used vehicle retail | 21,133 | 20,796 | 337 | 2 | % | |||||||||
Average gross profit per unit | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | $ | 3,535 | $ | 3,428 | $ | 107 | 3 | % | ||||||
Import | 1,178 | 1,254 | (76 | ) | (6 | )% | ||||||||
Domestic | 1,688 | 2,036 | (348 | ) | (17 | )% | ||||||||
Total new vehicle | 1,828 | 1,915 | (87 | ) | (5 | )% | ||||||||
Used vehicle | 1,653 | 1,648 | 5 | — | % | |||||||||
Finance and insurance, net | 1,437 | 1,397 | 40 | 3 | % | |||||||||
Front end yield (1) | 3,189 | 3,195 | (6 | ) | — | % | ||||||||
Gross margin | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | 6.7 | % | 6.7 | % | — | |||||||||
Import | 4.3 | % | 4.6 | % | (30) bps | |||||||||
Domestic | 4.6 | % | 5.6 | % | (100) bps | |||||||||
Total new vehicle | 5.2 | % | 5.6 | % | (40) bps | |||||||||
Used vehicle retail | 7.8 | % | 7.9 | % | (10) bps | |||||||||
Parts and service | 62.1 | % | 62.5 | % | (40) bps | |||||||||
Total gross profit margin | 16.2 | % | 16.1 | % | 10 bps | |||||||||
SG&A metrics | ||||||||||||||
Rent expense | $ | 29.9 | $ | 31.3 | $ | (1.4 | ) | (4 | )% | |||||
Total SG&A as a percentage of gross profit | 69.2 | % | 68.8 | % | 40 bps | |||||||||
SG&A, excluding rent expense as a percentage of gross profit | 66.4 | % | 65.9 | % | 50 bps | |||||||||
Operating metrics | ||||||||||||||
Income from operations as a percentage of revenue | 4.6 | % | 4.6 | % | — | |||||||||
Income from operations as a percentage of gross profit | 28.1 | % | 28.4 | % | (30) bps | |||||||||
Adjusted income from operations as a percentage of revenue | 4.5 | % | 4.6 | % | (10) bps | |||||||||
Adjusted income from operations as a percentage of gross profit | 28.0 | % | 28.4 | % | (40) bps | |||||||||
Revenue mix | ||||||||||||||
New vehicle | 55.3 | % | 55.4 | % | ||||||||||
Used vehicle retail | 25.7 | % | 26.1 | % | ||||||||||
Used vehicle wholesale | 3.1 | % | 3.3 | % | ||||||||||
Parts and service | 11.9 | % | 11.2 | % | ||||||||||
Finance and insurance | 4.0 | % | 4.0 | % | ||||||||||
Total revenue | 100.0 | % | 100.0 | % | ||||||||||
Gross profit mix | ||||||||||||||
New vehicle | 17.7 | % | 19.1 | % | ||||||||||
Used vehicle retail | 12.3 | % | 12.9 | % | ||||||||||
Used vehicle wholesale | (0.3 | )% | (0.4 | )% | ||||||||||
Parts and service | 45.6 | % | 43.6 | % | ||||||||||
Finance and insurance | 24.7 | % | 24.8 | % | ||||||||||
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 unit sales. |
For the Twelve Months Ended December 31, | Increase (Decrease) | % Change | ||||||||||||
2016 | 2015 | |||||||||||||
Revenue | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | $ | 1,226.5 | $ | 1,253.5 | $ | (27.0 | ) | (2 | )% | |||||
Import | 1,544.6 | 1,514.4 | 30.2 | 2 | % | |||||||||
Domestic | 667.8 | 639.7 | 28.1 | 4 | % | |||||||||
Total new vehicle | 3,438.9 | 3,407.6 | 31.3 | 1 | % | |||||||||
Used Vehicle: | ||||||||||||||
Retail | 1,578.0 | 1,561.3 | 16.7 | 1 | % | |||||||||
Wholesale | 191.9 | 198.2 | (6.3 | ) | (3 | )% | ||||||||
Total used vehicle | 1,769.9 | 1,759.5 | 10.4 | 1 | % | |||||||||
Parts and service | 736.1 | 683.4 | 52.7 | 8 | % | |||||||||
Finance and insurance | 247.6 | 243.3 | 4.3 | 2 | % | |||||||||
Total revenue | $ | 6,192.5 | $ | 6,093.8 | $ | 98.7 | 2 | % | ||||||
Gross profit | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | $ | 82.4 | $ | 83.7 | $ | (1.3 | ) | (2 | )% | |||||
Import | 66.4 | 71.2 | (4.8 | ) | (7 | )% | ||||||||
Domestic | 29.8 | 36.0 | (6.2 | ) | (17 | )% | ||||||||
Total new vehicle | 178.6 | 190.9 | (12.3 | ) | (6 | )% | ||||||||
Used Vehicle: | ||||||||||||||
Retail | 123.6 | 125.1 | (1.5 | ) | (1 | )% | ||||||||
Wholesale | (3.2 | ) | (3.1 | ) | (0.1 | ) | (3 | )% | ||||||
Total used vehicle | 120.4 | 122.0 | (1.6 | ) | (1 | )% | ||||||||
Parts and service: | ||||||||||||||
Customer pay | 255.1 | 234.6 | 20.5 | 9 | % | |||||||||
Warranty | 70.3 | 65.4 | 4.9 | 7 | % | |||||||||
Wholesale parts | 19.2 | 18.9 | 0.3 | 2 | % | |||||||||
Parts and service, excluding reconditioning and preparation | 344.6 | 318.9 | 25.7 | 8 | % | |||||||||
Reconditioning and preparation | 114.3 | 109.4 | 4.9 | 4 | % | |||||||||
Total parts and service | 458.9 | 428.3 | 30.6 | 7 | % | |||||||||
Finance and insurance | 247.6 | 243.3 | 4.3 | 2 | % | |||||||||
Total gross profit | $ | 1,005.5 | $ | 984.5 | $ | 21.0 | 2 | % | ||||||
SG&A expense | $ | 693.4 | $ | 672.9 | $ | 20.5 | 3 | % | ||||||
SG&A expense as a percentage of gross profit | 69.0 | % | 68.3 | % | 70 bps |
For the Twelve Months Ended December 31, | Increase (Decrease) | % Change | ||||||||||||
2016 | 2015 | |||||||||||||
Unit sales | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | 23,424 | 24,539 | (1,115 | ) | (5 | )% | ||||||||
Import | 55,960 | 56,224 | (264 | ) | — | % | ||||||||
Domestic | 17,804 | 17,669 | 135 | 1 | % | |||||||||
Total new vehicle | 97,188 | 98,432 | (1,244 | ) | (1 | )% | ||||||||
Used vehicle retail | 74,027 | 74,312 | (285 | ) | — | % | ||||||||
Used to new ratio | 76.2 | % | 75.5 | % | 70 bps | |||||||||
Average selling price | ||||||||||||||
New vehicle | $ | 35,384 | $ | 34,619 | $ | 765 | 2 | % | ||||||
Used vehicle retail | 21,317 | 21,010 | 307 | 1 | % | |||||||||
Average gross profit per unit | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | $ | 3,518 | $ | 3,411 | $ | 107 | 3 | % | ||||||
Import | 1,187 | 1,266 | (79 | ) | (6 | )% | ||||||||
Domestic | 1,674 | 2,037 | (363 | ) | (18 | )% | ||||||||
Total new vehicle | 1,838 | 1,939 | (101 | ) | (5 | )% | ||||||||
Used vehicle retail | 1,670 | 1,683 | (13 | ) | (1 | )% | ||||||||
Finance and insurance, net | 1,446 | 1,408 | 38 | 3 | % | |||||||||
Front end yield (1) | 3,211 | 3,238 | (27 | ) | (1 | )% | ||||||||
Gross margin | ||||||||||||||
New vehicle: | ||||||||||||||
Luxury | 6.7 | % | 6.7 | % | — | |||||||||
Import | 4.3 | % | 4.7 | % | (40) bps | |||||||||
Domestic | 4.5 | % | 5.6 | % | (110) bps | |||||||||
Total new vehicle | 5.2 | % | 5.6 | % | (40) bps | |||||||||
Used vehicle retail | 7.8 | % | 8.0 | % | (20) bps | |||||||||
Parts and service: | ||||||||||||||
Parts and service, excluding reconditioning and preparation | 46.8 | % | 46.7 | % | 10 bps | |||||||||
Parts and service, including reconditioning and preparation | 62.3 | % | 62.7 | % | (40) bps | |||||||||
Total gross profit margin | 16.2 | % | 16.2 | % | — |
(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 unit sales. |
December 31, 2016 | December 31, 2015 | Increase (Decrease) | % Change | |||||||||||
SELECTED BALANCE SHEET DATA | ||||||||||||||
Cash and cash equivalents | $ | 3.4 | $ | 2.8 | $ | 0.6 | 21 | % | ||||||
New vehicle inventory | 720.6 | 739.2 | (18.6 | ) | (3 | )% | ||||||||
Used vehicle inventory | 132.7 | 134.1 | (1.4 | ) | (1 | )% | ||||||||
Parts inventory | 41.6 | 43.9 | (2.3 | ) | (5 | )% | ||||||||
Total current assets | 1,332.4 | 1,331.2 | 1.2 | — | % | |||||||||
Floor plan notes payable | 781.8 | 712.2 | 69.6 | 10 | % | |||||||||
Total current liabilities | 1,104.3 | 1,007.8 | 96.5 | 10 | % | |||||||||
CAPITALIZATION: | ||||||||||||||
Long-term debt (including current portion) | $ | 926.7 | $ | 954.3 | $ | (27.6 | ) | (3 | )% | |||||
Shareholders' equity | 279.7 | 314.5 | (34.8 | ) | (11 | )% | ||||||||
Total | $ | 1,206.4 | $ | 1,268.8 | $ | (62.4 | ) | (5 | )% |
December 31, 2016 | December 31, 2015 | ||||
DAYS SUPPLY | |||||
New vehicle inventory | 61 | 62 | |||
Used vehicle inventory | 30 | 30 |
For the Year Ended December 31, | |||||
2016 | 2015 | ||||
Luxury: | |||||
Mercedes-Benz | 7 | % | 7 | % | |
Lexus | 7 | % | 7 | % | |
BMW | 6 | % | 8 | % | |
Acura | 4 | % | 5 | % | |
Infiniti | 3 | % | 3 | % | |
Other luxury | 7 | % | 6 | % | |
Total luxury | 34 | % | 36 | % | |
Imports: | |||||
Honda | 17 | % | 16 | % | |
Toyota | 12 | % | 12 | % | |
Nissan | 11 | % | 12 | % | |
Other imports | 5 | % | 6 | % | |
Total imports | 45 | % | 46 | % | |
Domestic: | |||||
Ford | 13 | % | 11 | % | |
Dodge | 3 | % | 2 | % | |
Chevrolet | 3 | % | 3 | % | |
Other domestics | 2 | % | 2 | % | |
Total domestic | 21 | % | 18 | % | |
Total New Vehicle Revenue | 100 | % | 100 | % |
For the Twelve Months Ended | |||||||
December 31, 2016 | September 30, 2016 | ||||||
(Dollars in millions) | |||||||
Adjusted leverage ratio: | |||||||
Long-term debt (including current portion) | $ | 926.7 | $ | 930.2 | |||
Calculation of earnings before interest, taxes, depreciation and amortization ("EBITDA"): | |||||||
Income from continuing operations | $ | 167.2 | $ | 141.3 | |||
Add: | |||||||
Depreciation and amortization | 30.7 | 30.5 | |||||
Income tax expense | 100.6 | 85.1 | |||||
Swap and other interest expense | 56.2 | 56.0 | |||||
Earnings before interest, taxes, depreciation and amortization ("EBITDA") | $ | 354.7 | $ | 312.9 | |||
Non-core items - (income) expense: | |||||||
Real estate-related charges | $ | 5.7 | $ | 5.2 | |||
Legal settlements | (6.6 | ) | — | ||||
Gain on divestitures | (45.5 | ) | (13.5 | ) | |||
Total non-core items | (46.4 | ) | (8.3 | ) | |||
Adjusted EBITDA | $ | 308.3 | $ | 304.6 | |||
Adjusted leverage ratio | 3.0 | 3.1 |
For the Three Months Ended December 31, | |||||||
2016 | 2015 | ||||||
(In millions, except per share data) | |||||||
Adjusted income from operations: | |||||||
Income from operations | $ | 80.1 | $ | 69.7 | |||
Real estate-related charges | 0.5 | — | |||||
Legal settlements | (6.6 | ) | — | ||||
Adjusted income from operations | $ | 74.0 | $ | 69.7 | |||
Adjusted income from continuing operations: | |||||||
Income from continuing operations | $ | 67.1 | $ | 41.2 | |||
Non-core items - (income) expense: | |||||||
Real estate-related charges | 0.5 | — | |||||
Legal settlements | (6.6 | ) | — | ||||
Gain on divestitures | (45.5 | ) | (13.5 | ) | |||
Income tax expense on non-core items above | 19.4 | 5.1 | |||||
Income tax benefit | (0.9 | ) | — | ||||
Total non-core items | (33.1 | ) | (8.4 | ) | |||
Adjusted income from continuing operations | $ | 34.0 | $ | 32.8 | |||
Adjusted diluted earnings per share (EPS) from continuing operations: | |||||||
Net income | $ | 3.08 | $ | 1.64 | |||
Discontinued operations, net of tax | — | 0.01 | |||||
Income from continuing operations | $ | 3.08 | $ | 1.65 | |||
Total non-core items | (1.52 | ) | (0.34 | ) | |||
Adjusted diluted EPS from continuing operations | $ | 1.56 | $ | 1.31 | |||
Weighted average common shares outstanding - diluted | 21.8 | 25.0 |
For the Twelve Months Ended December 31, | |||||||
2016 | 2015 | ||||||
(In millions, except per share data) | |||||||
Adjusted income from operations: | |||||||
Income from operations | $ | 297.8 | $ | 301.6 | |||
Real estate-related charges | 5.7 | — | |||||
Legal settlements | (6.6 | ) | — | ||||
Adjusted income from operations | $ | 296.9 | $ | 301.6 | |||
Adjusted income from continuing operations: | |||||||
Income from continuing operations | $ | 167.2 | $ | 169.4 | |||
Non-core items - (income) expense: | |||||||
Real estate-related charges | 5.7 | — | |||||
Legal settlements | (6.6 | ) | — | ||||
Gain on divestitures | (45.5 | ) | (34.9 | ) | |||
Income tax expense on non-core items above | 17.4 | 13.3 | |||||
Income tax benefit | (0.9 | ) | (0.8 | ) | |||
Total non-core items | (29.9 | ) | (22.4 | ) | |||
Adjusted income from continuing operations | $ | 137.3 | $ | 147.0 | |||
Adjusted diluted earnings per share (EPS) from continuing operations: | |||||||
Net income | $ | 7.40 | $ | 6.41 | |||
Discontinued operations, net of tax | — | 0.01 | |||||
Income from continuing operations | $ | 7.40 | $ | 6.42 | |||
Total non-core items | (1.32 | ) | (0.85 | ) | |||
Adjusted diluted EPS from continuing operations | $ | 6.08 | $ | 5.57 | |||
Weighted average common shares outstanding - diluted | 22.6 | 26.4 |