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Asbury Automotive Group Announces Record Financial Results for Fourth Quarter and Full Year 2021 and Increase in Share Repurchase Authorization

February 15, 2022 7:00 AM EST

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  • Fourth quarter EPS of $6.44 per diluted share, up 40% over prior year EPS
  • Fourth quarter adjusted EPS of $7.46 per diluted share (a non-GAAP measure), up 68% over prior year adjusted EPS
  • Fourth quarter revenue increased 19% and gross profit increased 46% over prior year quarter; operating margin of 8.9%
  • Fourth quarter SG&A as a percentage of gross profit decreased 690 bps over prior year to 54.5%, while adjusted SG&A decreased 710 bps to 54.3%
  • Full year revenue increased 38% and gross profit increased 55% over prior year and adjusted EBITDA (a non-GAAP measure) increased 94% to $828 million
  • Increase in the Company’s share repurchase authorization by $100 million, to $200 million

DULUTH, Ga.--(BUSINESS WIRE)-- Asbury Automotive Group, Inc. (NYSE: ABG), one of the largest automotive retail and service companies in the U.S., reported record net income for the fourth quarter 2021 of $141 million ($6.44 per diluted share). This result compares to net income of $89 million ($4.59 per diluted share) in the prior year quarter.

“In the fourth quarter, we closed on the transformative acquisitions of:

  • Larry H. Miller Dealerships and Total Care Auto, Powered by Landcar (“TCA”, collectively, “LHM Acquisition”), in seven Western states,
  • Stevinson Automotive Group in Colorado,
  • Arapahoe Hyundai-Genesis in the Denver market and
  • Kahlo CDJR in the Indianapolis market.

“We established a coast-to-coast presence and built scale in several strategic high-growth markets through these acquisitions. More importantly, all of these dealerships share Asbury's vision of being the most guest-centric auto retailer in the country. While we acquired approximately $6.6 billion in annualized revenue, we still ended the year with a strong balance sheet with an adjusted net leverage ratio of 2.7x,” said David Hult, Asbury’s President and Chief Executive Officer. “We’ll be working together with our new team members to integrate these acquisitions over the next few quarters.

“Though a supply/demand imbalance remains ongoing with vehicle sales, our incredible team members outperformed once again, achieving record fourth quarter levels in revenue, operating margins, SG&A as a percentage of gross profit, net income and EPS. As we continue to excel on our same store results and we’re pleased with the progress of Clicklane, we will update our strategic five-year plan after we close the first quarter of 2022.”

The financial measures discussed below include both GAAP and adjusted (non-GAAP) financial measures. Please see reconciliations for non-GAAP metrics included in the accompanying financial tables.

The Company reported adjusted net income (a non-GAAP measure) for the fourth quarter 2021 of $163 million ($7.46 per diluted share) compared to $86 million ($4.44 per diluted share) in the prior year quarter.

Net income for the fourth quarter 2021 was adjusted for acquisition expenses and acquisition financing expenses of $28.9 million ($1.02 per diluted share).

Net income for the fourth quarter 2020 was adjusted for a $3.9 million ($0.15 per diluted share) gain from a divestiture.

Fourth Quarter 2021 Operational Summary

Total company vs. 4th Quarter 2020:

  • Revenue of $2.7 billion, an increase of 19%
  • Gross profit increased 46%
  • Gross margin increased 370 bps to 20.4%
  • New vehicle unit volume decreased 8%; new vehicle revenue increased 5%; gross profit increased 99%
  • Used vehicle retail unit volume increased 27%; used vehicle retail revenue increased 53%; gross profit increased 84%
  • Finance and insurance revenue increased 25%
  • Parts and service revenue increased 27%; gross profit increased 20%
  • Adjusted SG&A as a percentage of gross profit fell to 54.3%, a decrease of 710 bps
  • Operating income increased 76%; adjusted operating income increased 77%
  • Operating margin increased 290 bps to 8.9%; adjusted operating margin also increased 290 bps to 8.9%
  • Adjusted EPS increased 68% to $7.46

Same store (dealership only) vs. 4th Quarter 2020:

  • Revenue increased 5%
  • Gross profit increased 29%
  • Gross margin increased 380 bps to 20.5%
  • New vehicle unit volume decreased 21%; new vehicle revenue decreased 9%; gross profit increased 74%
  • Used vehicle retail unit volume increased 15%; used vehicle retail revenue increased 40%; gross profit increased 64%
  • Finance and insurance revenue increased 6%; gross profit per unit increased 12%
  • Parts and service revenue increased 13%; gross profit increased 8%; customer pay gross profit increased 17%

Full Year 2021 Results

For the full year 2021, the Company reported record net income of $532 million ($26.49 per diluted share) compared to $254 million ($13.18 per diluted share) in the prior year, a 101% increase in EPS. Adjusted net income (a non-GAAP measure) for 2021 was $549 million ($27.29 per diluted share) compared to $249 million ($12.90 per diluted share) in the prior year, a 112% increase in adjusted EPS.

Total revenue for the full year 2021 was $9.8 billion, up 38% from the prior year; total revenue on a same-store basis was up 20% from the prior year. Total Adjusted EBITDA for the full year 2021 was a record $828 million, up 94% from the prior year.

Liquidity and Leverage

As of December 31, 2021, the company had approximately $437 million of liquidity, including cash of $63 million (which excludes $127 million of cash at TCA), floorplan offset accounts of $84 million and availability under the used vehicle floorplan line and revolver of $291 million. The company’s adjusted net leverage ratio was 2.7x at quarter end.

Financing

During the fourth quarter, to finance the Company’s acquisitions and the related growth of the business, the Company upsized its credit facility, entered into a mortgage facility and completed debt and equity offerings. If the financings had closed simultaneously with the LHM Acquisition, our adjusted EPS for the fourth quarter would have been positively impacted by $0.87 as a result of lower interest expense and fewer outstanding shares.

Share Repurchase Authorization Increase

The Company announced that its Board of Directors increased the Company's common stock share repurchase authorization by $100.0 million, to $200.0 million. The shares may be purchased from time to time in the open market, in privately negotiated transactions or in other manners as permitted by federal securities laws and other legal and contractual requirements. The extent to which the Company repurchases its shares, the number of shares and the timing of any repurchase will depend on such factors as Asbury’s stock price, general economic and market conditions, the potential impact on its capital structure, the expected return on competing uses of capital such as strategic dealership acquisitions and capital investments and other considerations.

Earnings Call

Additional commentary regarding the third quarter results will be provided during the earnings conference call on Tuesday, February 15, 2022, at 10:00 a.m. ET.

The conference call will be simulcast live on the internet and can be accessed by logging onto www.asburyauto.com/company/investor-relations. A replay will be available on this site for 30 days.

In addition, live audio of the call will be accessible to the public by calling (888) 220-8474 (domestic) or (646) 828-8193 (international); confirmation code – 3116958. Callers should dial in approximately 5 to 10 minutes before the call begins.

A conference call replay will be available two hours following the call for seven days and can be accessed by calling (888) 203-1112 (domestic) or (719) 457-0820 (international); passcode – 3116958.

About Asbury Automotive Group, Inc.

Asbury Automotive Group, Inc. (NYSE: ABG), a Fortune 500 company headquartered in Duluth, GA, is one of the largest automotive retailers in the U.S. In late 2020, Asbury embarked on a five-year plan to increase revenue and profitability strategically through organic and acquisitive growth as well as their innovative Clicklane digital vehicle purchasing platform, with its guest-centric approach as Asbury’s constant North Star. Asbury currently operates 154 new vehicle dealerships in 15 states, consisting of 204 franchises, representing 31 brands of vehicles, and seven stand-alone used vehicle dealerships. Asbury also operates 35 collision repair centers, an auto auction, a used vehicle wholesale business and Total Care Auto, Powered by Landcar, a leading provider of service contracts and other vehicle protection products. Asbury offers an extensive range of automotive products and services, including new and used vehicles; parts and service, which includes vehicle repair and maintenance services, replacement parts and collision repair services; and finance and insurance products, including arranging vehicle financing through third parties and aftermarket products, such as extended service contracts, guaranteed asset protection debt cancellation and prepaid maintenance.

For additional information, visit www.asburyauto.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements other than historical fact, and may include statements relating to goals, plans, market conditions and projections regarding Asbury's financial position, liquidity, results of operations, market position and dealership portfolio, the expected benefits of Clicklane, and other initiatives and future business strategy, including the expected terms or timeline of currently anticipated or recently completed acquisitions or dispositions, such as the LHM acquisition, the anticipated cost savings, run-rate synergies, revenue enhancement strategies, operational improvements and other benefits of such currently anticipated or recently completed acquisitions or dispositions. These statements are based on management's current expectations and beliefs and involve significant risks and uncertainties that may cause results to differ materially from those set forth in the statements. These risks and uncertainties include, among other things, our inability to realize the benefits expected from recently completed transactions; our inability to promptly and effectively integrate recently completed transactions and the diversion of management’s attention from ongoing business and regular business responsibilities; our inability to complete future acquisitions or divestitures and the risks resulting thereto; the impact of the ongoing COVID-19 pandemic on our industry and business, market factors, Asbury's relationships with, and the financial and operational stability of, vehicle manufacturers and other suppliers, acts of God or other incidents and the shortage of semiconductor chips, which may adversely impact supply from vehicle manufacturers and/or present retail sales challenges; risks associated with Asbury's indebtedness and our ability to comply with applicable covenants in our various financing agreements, or to obtain waivers of these covenants as necessary; risks related to competition in the automotive retail and service industries, general economic conditions both nationally and locally, governmental regulations, legislation, adverse results in litigation and other proceedings, and Asbury's ability to execute its strategic and operational strategies and initiatives, including its five-year strategic plan, Asbury's ability to leverage gains from its dealership portfolio, Asbury's ability to capitalize on opportunities to repurchase its debt and equity securities or purchase properties that it currently leases, and Asbury's ability to stay within its targeted range for capital expenditures. There can be no guarantees that Asbury's plans for future operations will be successfully implemented or that they will prove to be commercially successful.

These and other risk factors that could cause actual results to differ materially from those expressed or implied in our forward-looking statements are and will be discussed in Asbury's filings with the U.S. Securities and Exchange Commission from time to time, including its most recent annual report on Form 10-K and any subsequently filed quarterly reports on Form 10-Q. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

ASBURY AUTOMOTIVE GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share data)

(Unaudited)

 

For the Three Months Ended

December 31,

 

Increase

(Decrease)

 

%

Change

 

2021

 

2020

 

 

REVENUE:

 

 

 

 

 

 

 

New vehicle

$

1,284.5

 

 

$

1,225.6

 

 

$

58.9

 

 

5

%

Used vehicle:

 

 

 

 

 

 

 

Retail

 

865.3

 

 

 

564.0

 

 

 

301.3

 

 

53

%

Wholesale

 

64.2

 

 

 

95.3

 

 

 

(31.1

)

 

(33

)%

Total used vehicle

 

929.5

 

 

 

659.3

 

 

 

270.2

 

 

41

%

Parts and service

 

331.4

 

 

 

261.8

 

 

 

69.6

 

 

27

%

Finance and insurance

 

109.4

 

 

 

87.3

 

 

 

22.1

 

 

25

%

TOTAL REVENUE

 

2,654.8

 

 

 

2,234.0

 

 

 

420.8

 

 

19

%

COST OF SALES:

 

 

 

 

 

 

 

New vehicle

 

1,119.6

 

 

 

1,142.7

 

 

 

(23.1

)

 

(2

)%

Used vehicle:

 

 

 

 

 

 

 

Retail

 

793.0

 

 

 

524.8

 

 

 

268.2

 

 

51

%

Wholesale

 

59.7

 

 

 

94.9

 

 

 

(35.2

)

 

(37

)%

Total used vehicle

 

852.7

 

 

 

619.7

 

 

 

233.0

 

 

38

%

Parts and service

 

136.6

 

 

 

99.3

 

 

 

37.3

 

 

38

%

Finance and insurance

 

3.6

 

 

 

 

 

 

3.6

 

 

%

TOTAL COST OF SALES

 

2,112.5

 

 

 

1,861.7

 

 

 

250.8

 

 

13

%

GROSS PROFIT

 

542.3

 

 

 

372.3

 

 

 

170.0

 

 

46

%

OPERATING EXPENSES:

 

 

 

 

 

 

 

Selling, general and administrative

 

295.7

 

 

 

228.5

 

 

 

67.2

 

 

29

%

Depreciation and amortization

 

11.3

 

 

 

9.5

 

 

 

1.8

 

 

19

%

Other operating (income) expense, net

 

(0.8

)

 

 

(0.2

)

 

 

(0.6

)

 

(300

)%

INCOME FROM OPERATIONS

 

236.1

 

 

 

134.5

 

 

 

101.6

 

 

76

%

OTHER EXPENSES (INCOME):

 

 

 

 

 

 

 

Floor plan interest expense

 

1.7

 

 

 

3.6

 

 

 

(1.9

)

 

(53

)%

Other interest expense, net

 

50.7

 

 

 

15.0

 

 

 

35.7

 

 

238

%

Gain on dealership divestitures, net

 

 

 

 

(3.9

)

 

 

3.9

 

 

100

%

Total other expenses (income), net

 

52.4

 

 

 

14.7

 

 

 

37.7

 

 

256

%

INCOME BEFORE INCOME TAXES

 

183.7

 

 

 

119.8

 

 

 

63.9

 

 

53

%

Income tax expense

 

43.2

 

 

 

30.7

 

 

 

12.5

 

 

41

%

NET INCOME

$

140.5

 

 

$

89.1

 

 

$

51.4

 

 

58

%

EARNINGS PER COMMON SHARE:

 

 

 

 

 

 

 

Basic—

 

 

 

 

 

 

 

Net income

$

6.47

 

 

$

4.64

 

 

$

1.83

 

 

39

%

Diluted—

 

 

 

 

 

 

 

Net income

$

6.44

 

 

$

4.59

 

 

$

1.85

 

 

40

%

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

 

 

 

 

 

 

 

Basic

 

21.7

 

 

 

19.2

 

 

 

2.5

 

 

 

Restricted stock

 

0.1

 

 

 

0.1

 

 

 

 

 

 

Performance share units

 

 

 

 

0.1

 

 

 

(0.1

)

 

 

Diluted

 

21.8

 

 

 

19.4

 

 

 

2.4

 

 

 

ASBURY AUTOMOTIVE GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share data)

(Unaudited)

 

For the Twelve Months

Ended December 31,

 

Increase

(Decrease)

 

%

Change

 

2021

 

2020

 

 

REVENUE:

 

 

 

 

 

 

 

New vehicle

$

4,934.1

 

 

$

3,767.4

 

 

$

1,166.7

 

 

31

%

Used vehicle:

 

 

 

 

 

 

 

Retail

 

3,055.9

 

 

 

1,930.0

 

 

 

1,125.9

 

 

58

%

Wholesale

 

259.7

 

 

 

239.5

 

 

 

20.2

 

 

8

%

Total used vehicle

 

3,315.6

 

 

 

2,169.5

 

 

 

1,146.1

 

 

53

%

Parts and service

 

1,182.9

 

 

 

889.8

 

 

 

293.1

 

 

33

%

Finance and insurance

 

405.1

 

 

 

305.1

 

 

 

100.0

 

 

33

%

TOTAL REVENUE

 

9,837.7

 

 

 

7,131.8

 

 

 

2,705.9

 

 

38

%

COST OF SALES:

 

 

 

 

 

 

 

New vehicle

 

4,443.6

 

 

 

3,548.9

 

 

 

894.7

 

 

25

%

Used vehicle:

 

 

 

 

 

 

 

Retail

 

2,793.9

 

 

 

1,784.7

 

 

 

1,009.2

 

 

57

%

Wholesale

 

233.4

 

 

 

228.2

 

 

 

5.2

 

 

2

%

Total used vehicle

 

3,027.3

 

 

 

2,012.9

 

 

 

1,014.4

 

 

50

%

Parts and service

 

461.0

 

 

 

346.6

 

 

 

114.4

 

 

33

%

Finance and insurance

 

3.6

 

 

 

 

 

 

3.6

 

 

%

TOTAL COST OF SALES

 

7,935.5

 

 

 

5,908.4

 

 

 

2,027.1

 

 

34

%

GROSS PROFIT

 

1,902.2

 

 

 

1,223.4

 

 

 

678.8

 

 

55

%

OPERATING EXPENSES:

 

 

 

 

 

 

 

Selling, general and administrative

 

1,073.9

 

 

 

781.9

 

 

 

292.0

 

 

37

%

Depreciation and amortization

 

41.9

 

 

 

38.5

 

 

 

3.4

 

 

9

%

Franchise rights impairment

 

 

 

 

23.0

 

 

 

(23.0

)

 

(100

)%

Other operating (income) expense, net

 

(5.4

)

 

 

9.2

 

 

 

(14.6

)

 

(159

)%

INCOME FROM OPERATIONS

 

791.8

 

 

 

370.8

 

 

 

421.0

 

 

114

%

OTHER EXPENSES:

 

 

 

 

 

 

 

Floor plan interest expense

 

8.2

 

 

 

17.7

 

 

 

(9.5

)

 

(54

)%

Other interest expense, net

 

93.9

 

 

 

56.7

 

 

 

37.2

 

 

66

%

Loss on extinguishment of long-term debt, net

 

 

 

 

20.6

 

 

 

(20.6

)

 

(100

)%

Gain on dealership divestitures, net

 

(8.0

)

 

 

(62.3

)

 

 

54.3

 

 

87

%

Total other expenses, net

 

94.1

 

 

 

32.7

 

 

 

61.4

 

 

188

%

INCOME BEFORE INCOME TAXES

 

697.7

 

 

 

338.1

 

 

 

359.6

 

 

106

%

Income tax expense

 

165.3

 

 

 

83.7

 

 

 

81.6

 

 

97

%

NET INCOME

$

532.4

 

 

$

254.4

 

 

$

278.0

 

 

109

%

EARNINGS PER COMMON SHARE:

 

 

 

 

 

 

 

Basic—

 

 

 

 

 

 

 

Net income

$

26.75

 

 

$

13.25

 

 

$

13.50

 

 

102

%

Diluted—

 

 

 

 

 

 

 

Net income

$

26.49

 

 

$

13.18

 

 

$

13.31

 

 

101

%

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

 

 

 

 

 

 

 

Basic

 

19.9

 

 

 

19.2

 

 

 

0.7

 

 

 

Restricted stock

 

0.1

 

 

 

 

 

 

0.1

 

 

 

Performance share units

 

0.1

 

 

 

0.1

 

 

 

 

 

 

Diluted

 

20.1

 

 

 

19.3

 

 

 

0.8

 

 

 

ASBURY AUTOMOTIVE GROUP, INC.

Additional Disclosures-Consolidated (In millions)

(Unaudited)

 

December 31,

2021

 

December 31,

2020

 

Increase

(Decrease)

 

% Change

SELECTED BALANCE SHEET DATA

 

 

 

 

 

 

 

Cash and cash equivalents

$

189.4

 

$

1.4

 

$

188.0

 

 

NM

 

New vehicle inventory (a)

 

206.5

 

 

640.0

 

 

(433.5

)

 

(68

)%

Used vehicle inventory (b)

 

402.0

 

 

188.5

 

 

213.5

 

 

113

%

Parts inventory (c)

 

109.9

 

 

46.7

 

 

63.2

 

 

135

%

Total current assets

 

2,051.5

 

 

1,405.7

 

 

645.8

 

 

46

%

Floor plan notes payable (d)

 

564.5

 

 

702.2

 

 

(137.7

)

 

(20

)%

Total current liabilities

 

1,598.0

 

 

1,223.4

 

 

374.6

 

 

31

%

CAPITALIZATION:

 

 

 

 

 

 

 

Long-term debt (including current portion) (e)

$

3,582.6

 

$

1,201.8

 

$

2,380.8

 

 

198

%

Shareholders' equity

 

2,115.5

 

 

905.5

 

 

1,210.0

 

 

134

%

Total

$

5,698.1

 

$

2,107.3

 

$

3,590.8

 

 

170

%

_____________________________

NMNot Meaningful

 

(a) Excluding $4.3 million of new vehicle inventory classified as Assets held for sale as of December 31, 2021

(b) Excluding $16.0 million of used vehicle inventory classified as Assets held for sale as of December 31, 2021

(c) Excluding $3.8 million of parts inventory classified as Assets held for sale as of December 31, 2021

(d) Excluding $9.1 million of Floor plan notes payable classified as Liabilities associated with assets held for sale as of December 31, 2021

(e) Excluding $8.9 million of Long-term debt classified as Liabilities associated with assets held for sale as of December 31, 2020

 
 

 

December 31, 2021

 

September 30, 2021

 

December 31, 2020

Day Supply

 

 

 

 

 

New vehicle inventory

8

 

12

 

40

Used vehicle inventory

34

 

28

 

31

_____________________________

Days supply of inventory is calculated based on new and used inventory levels at the end of each reporting period and a 30-day historical cost of sales.

 
 

Brand Mix - New Vehicle Revenue by Brand

 

For the Three Months

Ended December 31,

 

2021

 

2020

Luxury

 

 

 

Mercedes-Benz

12

%

 

13

%

Lexus

11

%

 

13

%

BMW

6

%

 

6

%

Acura

3

%

 

3

%

Land Rover

2

%

 

3

%

Porsche

2

%

 

2

%

Audi

1

%

 

2

%

Other luxury

6

%

 

6

%

Total luxury

43

%

 

48

%

Imports

 

 

 

Toyota

13

%

 

11

%

Honda

12

%

 

13

%

Nissan

4

%

 

4

%

Other imports

8

%

 

7

%

Total imports

37

%

 

35

%

Domestic

 

 

 

Ford

7

%

 

6

%

Dodge

5

%

 

3

%

Chevrolet

3

%

 

4

%

Jeep

3

%

 

2

%

Other domestics

2

%

 

2

%

Total domestic

20

%

 

17

%

Total New Vehicle Revenue

100

%

 

100

%

 

ASBURY AUTOMOTIVE GROUP, INC.

STATEMENTS OF INCOME-CONSOLIDATED (In millions)

(Unaudited)

 

For the Three Months Ended

December 31,

 

Increase

(Decrease)

 

%

Change

 

2021

 

2020

 

 

Revenue

 

 

 

 

 

 

 

New vehicle

$

1,284.5

 

 

$

1,225.6

 

 

$

58.9

 

 

5

%

Used vehicle:

 

 

 

 

 

 

 

Retail

 

865.3

 

 

 

564.0

 

 

 

301.3

 

 

53

%

Wholesale

 

64.2

 

 

 

95.3

 

 

 

(31.1

)

 

(33

)%

Total used vehicle

 

929.5

 

 

 

659.3

 

 

 

270.2

 

 

41

%

Parts and service

 

331.4

 

 

 

261.8

 

 

 

69.6

 

 

27

%

Finance and insurance

 

109.4

 

 

 

87.3

 

 

 

22.1

 

 

25

%

Total Revenue

 

2,654.8

 

 

 

2,234.0

 

 

 

420.8

 

 

19

%

Gross profit

 

 

 

 

 

 

 

New vehicle

 

164.9

 

 

 

82.9

 

 

 

82.0

 

 

99

%

Used vehicle:

 

 

 

 

 

 

 

Retail

 

72.3

 

 

 

39.2

 

 

 

33.1

 

 

84

%

Wholesale

 

4.5

 

 

 

0.4

 

 

 

4.1

 

 

NM

 

Total used vehicle

 

76.8

 

 

 

39.6

 

 

 

37.2

 

 

94

%

Parts and service

 

194.8

 

 

 

162.5

 

 

 

32.3

 

 

20

%

Finance and insurance

 

105.8

 

 

 

87.3

 

 

 

18.5

 

 

21

%

Total gross profit

 

542.3

 

 

 

372.3

 

 

 

170.0

 

 

46

%

Operating expenses

 

 

 

 

 

 

 

Selling, general and administrative

 

295.7

 

 

 

228.5

 

 

 

67.2

 

 

29

%

Operating metrics

 

 

 

 

 

 

 

SG&A as a percentage of gross profit

 

54.5

%

 

 

61.4

%

 

(690) bps

 

 

Adjusted SG&A as a percentage of gross profit

 

54.3

%

 

 

61.4

%

 

(710) bps

 

 

Income from operations as a percentage of revenue

 

8.9

%

 

 

6.0

%

 

290 bps

 

 

Income from operations as a percentage of gross profit

 

43.5

%

 

 

36.1

%

 

740 bps

 

 

Adjusted income from operations as a percentage of revenue

 

8.9

%

 

 

6.0

%

 

290 bps

 

 

Adjusted income from operations as a percentage of gross profit

 

43.8

%

 

 

36.1

%

 

770 bps

 

 

Revenue mix

 

 

 

 

 

 

 

New vehicle

 

48.4

%

 

 

54.9

%

 

 

 

 

Used vehicle retail

 

32.6

%

 

 

25.2

%

 

 

 

 

Used vehicle wholesale

 

2.4

%

 

 

4.3

%

 

 

 

 

Parts and service

 

12.5

%

 

 

11.7

%

 

 

 

 

Finance and insurance

 

4.1

%

 

 

3.9

%

 

 

 

 

Total revenue

 

100.0

%

 

 

100.0

%

 

 

 

 

Gross profit mix

 

 

 

 

 

 

 

New vehicle

 

30.4

%

 

 

22.3

%

 

 

 

 

Used vehicle retail

 

13.4

%

 

 

10.6

%

 

 

 

 

Used vehicle wholesale

 

0.8

%

 

 

0.1

%

 

 

 

 

Parts and service

 

35.9

%

 

 

43.6

%

 

 

 

 

Finance and insurance

 

19.5

%

 

 

23.4

%

 

 

 

 

Total gross profit

 

100.0

%

 

 

100.0

%

 

 

 

 

 

____________________________

NMNot Meaningful

 
 

ASBURY AUTOMOTIVE GROUP, INC.

STATEMENTS OF INCOME-DEALERSHIPS (In millions)

(Unaudited)

 

For the Three Months Ended

December 31,

 

Increase

(Decrease)

 

%

Change

 

2021

 

2020

 

 

Revenue

 

 

 

 

 

 

 

New vehicle

$

1,284.5

 

 

$

1,225.6

 

 

$

58.9

 

 

5

%

Used vehicle:

 

 

 

 

 

 

 

Retail

 

865.3

 

 

 

564.0

 

 

 

301.3

 

 

53

%

Wholesale

 

64.2

 

 

 

95.3

 

 

 

(31.1

)

 

(33

)%

Total used vehicle

 

929.5

 

 

 

659.3

 

 

 

270.2

 

 

41

%

Parts and service

 

332.8

 

 

 

261.8

 

 

 

71.0

 

 

27

%

Finance and insurance, net

 

107.0

 

 

 

87.3

 

 

 

19.7

 

 

23

%

Total Revenue

 

2,653.8

 

 

 

2,234.0

 

 

 

419.8

 

 

19

%

Gross profit

 

 

 

 

 

 

 

New vehicle

 

164.9

 

 

 

82.9

 

 

 

82.0

 

 

99

%

Used vehicle:

 

 

 

 

 

 

 

Retail

 

72.3

 

 

 

39.2

 

 

 

33.1

 

 

84

%

Wholesale

 

4.5

 

 

 

0.4

 

 

 

4.1

 

 

NM

 

Total used vehicle

 

76.8

 

 

 

39.6

 

 

 

37.2

 

 

94

%

Parts and service

 

193.1

 

 

 

162.5

 

 

 

30.6

 

 

19

%

Finance and insurance, net

 

107.0

 

 

 

87.3

 

 

 

19.7

 

 

23

%

Total gross profit

 

541.8

 

 

 

372.3

 

 

 

169.5

 

 

46

%

Operating expenses

 

 

 

 

 

 

 

Selling, general and administrative

 

298.7

 

 

 

228.5

 

 

 

70.2

 

 

31

%

SG&A as a percentage of gross profit

 

55.1

%

 

 

61.4

%

 

(630) bps

 

 

 

_____________________________

NMNot Meaningful

 
 
 

ASBURY AUTOMOTIVE GROUP, INC.

KEY OPERATING HIGHLIGHTS-DEALERSHIPS (In millions, except per unit data)

(Unaudited)

 

For the Three Months Ended

December 31,

 

Increase

(Decrease)

 

%

Change

 

2021

 

2020

 

 

Unit sales

 

 

 

 

 

 

 

New vehicle:

 

 

 

 

 

 

 

Luxury

 

8,080

 

 

 

9,751

 

 

 

(1,671

)

 

(17

)%

Import

 

13,288

 

 

 

14,315

 

 

 

(1,027

)

 

(7

)%

Domestic

 

4,795

 

 

 

4,507

 

 

 

288

 

 

6

%

Total new vehicle

 

26,163

 

 

 

28,573

 

 

 

(2,410

)

 

(8

)%

Used vehicle retail

 

27,070

 

 

 

21,386

 

 

 

5,684

 

 

27

%

Used to new ratio

 

103.5

%

 

 

74.8

%

 

 

NM

 

 

 

Average selling price

 

 

 

 

 

 

 

New vehicle

$

49,096

 

 

$

42,894

 

 

$

6,202

 

 

14

%

Used vehicle retail

 

31,965

 

 

 

26,372

 

 

 

5,593

 

 

21

%

Average gross profit per unit

 

 

 

 

 

 

 

New vehicle:

 

 

 

 

 

 

 

Luxury

$

9,196

 

 

$

5,292

 

 

$

3,904

 

 

74

%

Import

 

4,749

 

 

 

1,202

 

 

 

3,547

 

 

295

%

Domestic

 

5,735

 

 

 

3,128

 

 

 

2,607

 

 

83

%

Total new vehicle

 

6,303

 

 

 

2,901

 

 

 

3,402

 

 

117

%

Used vehicle retail

 

2,671

 

 

 

1,833

 

 

 

838

 

 

46

%

Finance and insurance

 

2,010

 

 

 

1,747

 

 

 

263

 

 

15

%

Front end yield (1)

 

6,466

 

 

 

4,191

 

 

 

2,275

 

 

54

%

Gross margin

 

 

 

 

 

 

 

New vehicle:

 

 

 

 

 

 

 

Luxury

 

13.5

%

 

 

8.8

%

 

470 bps

 

 

Import

 

13.1

%

 

 

3.9

%

 

920 bps

 

 

Domestic

 

10.8

%

 

 

6.9

%

 

390 bps

 

 

Total new vehicle

 

12.8

%

 

 

6.8

%

 

600 bps

 

 

Used vehicle retail

 

8.4

%

 

 

7.0

%

 

140 bps

 

 

Parts and service

 

58.0

%

 

 

62.1

%

 

(410) bps

 

 

Total gross profit margin

 

20.4

%

 

 

16.7

%

 

370 bps

 

 

_____________________________
NMNot Meaningful

 

(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.

 
 
 

ASBURY AUTOMOTIVE GROUP, INC.

SAME STORE OPERATING HIGHLIGHTS-DEALERSHIPS (In millions)

(Unaudited)

 

For the Three Months Ended

December 31,

 

Increase

(Decrease)

 

%

Change

 

2021

 

2020

 

 

Revenue

 

 

 

 

 

 

 

New vehicle:

 

 

 

 

 

 

 

Luxury

$

532.6

 

 

$

579.5

 

 

$

(46.9

)

 

(8

)%

Import

 

404.0

 

 

 

436.5

 

 

 

(32.5

)

 

(7

)%

Domestic

 

174.2

 

 

 

202.1

 

 

 

(27.9

)

 

(14

)%

Total new vehicle

 

1,110.8

 

 

 

1,218.1

 

 

 

(107.3

)

 

(9

)%

Used Vehicle:

 

 

 

 

 

 

 

Retail

 

784.8

 

 

 

560.4

 

 

 

224.4

 

 

40

%

Wholesale

 

47.2

 

 

 

94.8

 

 

 

(47.6

)

 

(50

)%

Total used vehicle

 

832.0

 

 

 

655.2

 

 

 

176.8

 

 

27

%

Parts and service

 

294.5

 

 

 

259.9

 

 

 

34.6

 

 

13

%

Finance and insurance

 

92.4

 

 

 

86.9

 

 

 

5.5

 

 

6

%

Total revenue

$

2,329.7

 

 

$

2,220.1

 

 

$

109.6

 

 

5

%

Gross profit

 

 

 

 

 

 

 

New vehicle:

 

 

 

 

 

 

 

Luxury

$

72.0

 

 

$

51.2

 

 

$

20.8

 

 

41

%

Import

 

52.4

 

 

 

17.2

 

 

 

35.2

 

 

205

%

Domestic

 

18.5

 

 

 

13.9

 

 

 

4.6

 

 

33

%

Total new vehicle

 

142.9

 

 

 

82.3

 

 

 

60.6

 

 

74

%

Used Vehicle:

 

 

 

 

 

 

 

Retail

 

64.4

 

 

 

39.2

 

 

 

25.2

 

 

64

%

Wholesale

 

3.6

 

 

 

0.4

 

 

 

3.2

 

 

NM

 

Total used vehicle

 

68.0

 

 

 

39.6

 

 

 

28.4

 

 

72

%

Parts and service:

 

 

 

 

 

 

 

Customer pay

 

110.4

 

 

 

94.1

 

 

 

16.3

 

 

17

%

Warranty

 

20.6

 

 

 

26.8

 

 

 

(6.2

)

 

(23

)%

Wholesale parts

 

8.6

 

 

 

6.4

 

 

 

2.2

 

 

34

%

Parts and service, excluding reconditioning and preparation

 

139.6

 

 

 

127.3

 

 

 

12.3

 

 

10

%

Reconditioning and preparation

 

35.0

 

 

 

34.1

 

 

 

0.9

 

 

3

%

Total parts and service

 

174.6

 

 

 

161.4

 

 

 

13.2

 

 

8

%

Finance and insurance

 

92.4

 

 

 

86.9

 

 

 

5.5

 

 

6

%

Total gross profit

$

477.9

 

 

$

370.2

 

 

$

107.7

 

 

29

%

 

 

 

 

 

 

 

 

SG&A expense

$

266.5

 

 

$

227.0

 

 

$

39.5

 

 

17

%

SG&A expense as a percentage of gross profit

 

55.8

%

 

 

61.3

%

 

(550) bps

 

 

_____________________________

NMNot Meaningful

 

Same store amounts consist of information from dealerships for identical months in each comparative period, commencing with the first month we owned the dealership. Additionally, amounts related to divested dealerships are excluded from each comparative period.

 
 

ASBURY AUTOMOTIVE GROUP, INC.

SAME STORE OPERATING HIGHLIGHTS-DEALERSHIPS (Continued)

(Unaudited)

 

For the Three Months Ended

December 31,

 

Increase

(Decrease)

 

%

Change

 

2021

 

2020

 

 

Unit sales

 

 

 

 

 

 

 

New vehicle:

 

 

 

 

 

 

 

Luxury

 

7,852

 

 

 

9,675

 

 

 

(1,823

)

 

(19

)%

Import

 

11,342

 

 

 

14,315

 

 

 

(2,973

)

 

(21

)%

Domestic

 

3,363

 

 

 

4,451

 

 

 

(1,088

)

 

(24

)%

Total new vehicle

 

22,557

 

 

 

28,441

 

 

 

(5,884

)

 

(21

)%

Used vehicle retail

 

24,553

 

 

 

21,260

 

 

 

3,293

 

 

15

%

Used to new ratio

 

108.8

%

 

 

74.8

%

 

 

NM

 

 

 

Average selling price

 

 

 

 

 

 

 

New vehicle

$

49,244

 

 

$

42,829

 

 

$

6,415

 

 

15

%

Used vehicle retail

 

31,964

 

 

 

26,359

 

 

 

5,605

 

 

21

%

Average gross profit per unit

 

 

 

 

 

 

 

New vehicle:

 

 

 

 

 

 

 

Luxury

$

9,170

 

 

$

5,292

 

 

$

3,878

 

 

73

%

Import

 

4,620

 

 

 

1,202

 

 

 

3,418

 

 

284

%

Domestic

 

5,501

 

 

 

3,123

 

 

 

2,378

 

 

76

%

Total new vehicle

 

6,335

 

 

 

2,894

 

 

 

3,441

 

 

119

%

Used vehicle retail

 

2,623

 

 

 

1,844

 

 

 

779

 

 

42

%

Finance and insurance

 

1,961

 

 

 

1,748

 

 

 

213

 

 

12

%

Front end yield (1)

 

6,362

 

 

 

4,193

 

 

 

2,169

 

 

52

%

Gross margin

 

 

 

 

 

 

 

New vehicle:

 

 

 

 

 

 

 

Luxury

 

13.5

%

 

 

8.8

%

 

470 bps

 

 

Import

 

13.0

%

 

 

3.9

%

 

910 bps

 

 

Domestic

 

10.6

%

 

 

6.9

%

 

370 bps

 

 

Total new vehicle

 

12.9

%

 

 

6.8

%

 

610 bps

 

 

Used vehicle retail

 

8.2

%

 

 

7.0

%

 

120 bps

 

 

Parts and service:

 

 

 

 

 

 

 

Parts and service, excluding reconditioning and preparation

 

47.4

%

 

 

49.0

%

 

(160) bps

 

 

Parts and service, including reconditioning and preparation

 

59.3

%

 

 

62.1

%

 

(280) bps

 

 

Total gross profit margin

 

20.5

%

 

 

16.7

%

 

380 bps

 

 

_____________________________
NMNot Meaningful
   
Same store amounts consist of information from dealerships for identical months in each comparative period, commencing with the first month we owned the dealership. Additionally, amounts related to divested dealerships are excluded from each comparative period.
   

(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.

   
   
 

ASBURY AUTOMOTIVE GROUP, INC.

STATEMENTS OF INCOME-CONSOLIDATED (In millions)

(Unaudited)

 

For the Twelve Months Ended

December 31,

 

Increase

(Decrease)

 

%

Change

 

2021

 

2020

 

 

Revenue

 

 

 

 

 

 

 

New vehicle

$

4,934.1

 

 

$

3,767.4

 

 

$

1,166.7

 

31

%

Used vehicle:

 

 

 

 

 

 

 

Retail

 

3,055.9

 

 

 

1,930.0

 

 

 

1,125.9

 

58

%

Wholesale

 

259.7

 

 

 

239.5

 

 

 

20.2

 

8

%

Total used vehicle

 

3,315.6

 

 

 

2,169.5

 

 

 

1,146.1

 

53

%

Parts and service

 

1,182.9

 

 

 

889.8

 

 

 

293.1

 

33

%

Finance and insurance

 

405.1

 

 

 

305.1

 

 

 

100.0

 

33

%

Total Revenue

 

9,837.7

 

 

 

7,131.8

 

 

 

2,705.9

 

38

%

Gross profit

 

 

 

 

 

 

 

New vehicle

 

490.5

 

 

 

218.5

 

 

 

272.0

 

124

%

Used vehicle:

 

 

 

 

 

 

 

Retail

 

262.0

 

 

 

145.3

 

 

 

116.7

 

80

%

Wholesale

 

26.3

 

 

 

11.3

 

 

 

15.0

 

133

%

Total used vehicle

 

288.3

 

 

 

156.6

 

 

 

131.7

 

84

%

Parts and service

 

721.9

 

 

 

543.2

 

 

 

178.7

 

33

%

Finance and insurance

 

401.5

 

 

 

305.1

 

 

 

96.4

 

32

%

Total gross profit

 

1,902.2

 

 

 

1,223.4

 

 

 

678.8

 

55

%

Operating expenses

 

 

 

 

 

 

 

Selling, general and administrative

 

1,073.9

 

 

 

781.9

 

 

 

292.0

 

37

%

Operating metrics

 

 

 

 

 

 

 

SG&A as a percentage of gross profit

 

56.5

%

 

 

63.9

%

 

(740) bps

 

 

Adjusted SG&A as a percentage of gross profit

 

56.2

%

 

 

63.8

%

 

(760) bps

 

 

Income from operations as a percentage of revenue

 

8.0

%

 

 

5.2

%

 

280 bps

 

 

Income from operations as a percentage of gross profit

 

41.6

%

 

 

30.3

%

 

1,130 bps

 

 

Adjusted income from operations as a percentage of revenue

 

8.1

%

 

 

5.7

%

 

240 bps

 

 

Adjusted income from operations as a percentage of gross profit

 

41.7

%

 

 

33.1

%

 

860 bps

 

 

Revenue mix

 

 

 

 

 

 

 

New vehicle

 

50.2

%

 

 

52.8

%

 

 

 

 

Used vehicle retail

 

31.1

%

 

 

27.0

%

 

 

 

 

Used vehicle wholesale

 

2.6

%

 

 

3.4

%

 

 

 

 

Parts and service

 

12.0

%

 

 

12.5

%

 

 

 

 

Finance and insurance

 

4.1

%

 

 

4.3

%

 

 

 

 

Total revenue

 

100.0

%

 

 

100.0

%

 

 

 

 

Gross profit mix

 

 

 

 

 

 

 

New vehicle

 

25.8

%

 

 

17.9

%

 

 

 

 

Used vehicle retail

 

13.7

%

 

 

11.9

%

 

 

 

 

Used vehicle wholesale

 

1.4

%

 

 

0.9

%

 

 

 

 

Parts and service

 

38.0

%

 

 

44.4

%

 

 

 

 

Finance and insurance

 

21.1

%

 

 

24.9

%

 

 

 

 

Total gross profit

 

100.0

%

 

 

100.0

%

 

 

 

 

 

ASBURY AUTOMOTIVE GROUP, INC.

STATEMENTS OF INCOME-DEALERSHIPS (In millions)

(Unaudited)

 

For the Twelve Months

Ended December 31,

 

Increase

(Decrease)

 

%

Change

 

2021

 

2020

 

 

Revenue

 

 

 

 

 

 

 

New vehicle

$

4,934.1

 

 

$

3,767.4

 

 

$

1,166.7

 

31

%

Used vehicle:

 

 

 

 

 

 

 

Retail

 

3,055.9

 

 

 

1,930.0

 

 

 

1,125.9

 

58

%

Wholesale

 

259.7

 

 

 

239.5

 

 

 

20.2

 

8

%

Total used vehicle

 

3,315.6

 

 

 

2,169.5

 

 

 

1,146.1

 

53

%

Parts and service

 

1,184.3

 

 

 

889.8

 

 

 

294.5

 

33

%

Finance and insurance, net

 

402.7

 

 

 

305.1

 

 

 

97.6

 

32

%

Total Revenue

 

9,836.7

 

 

 

7,131.8

 

 

 

2,704.9

 

38

%

Gross profit

 

 

 

 

 

 

 

New vehicle

 

490.5

 

 

 

218.5

 

 

 

272.0

 

124

%

Used vehicle:

 

 

 

 

 

 

 

Retail

 

262.0

 

 

 

145.3

 

 

 

116.7

 

80

%

Wholesale

 

26.3

 

 

 

11.3

 

 

 

15.0

 

133

%

Total used vehicle

 

288.3

 

 

 

156.6

 

 

 

131.7

 

84

%

Parts and service

 

720.2

 

 

 

543.2

 

 

 

177.0

 

33

%

Finance and insurance, net

 

402.7

 

 

 

305.1

 

 

 

97.6

 

32

%

Total gross profit

 

1,901.7

 

 

 

1,223.4

 

 

 

678.3

 

55

%

Operating expenses

 

 

 

 

 

 

 

Selling, general and administrative

 

1,076.9

 

 

 

781.9

 

 

 

295.0

 

38

%

SG&A as a percentage of gross profit

 

56.6

%

 

 

63.9

%

 

(730) bps

 

 

 

ASBURY AUTOMOTIVE GROUP, INC.

KEY OPERATING HIGHLIGHTS-DEALERSHIPS (In millions, except per unit data)

(Unaudited)

 

For the Twelve Months

Ended December 31,

 

Increase

(Decrease)

 

%

Change

 

2021

 

2020

 

 

Unit sales

 

 

 

 

 

 

 

New vehicle:

 

 

 

 

 

 

 

Luxury

 

34,648

 

 

 

25,259

 

 

 

9,389

 

 

37

%

Import

 

58,413

 

 

 

52,201

 

 

 

6,212

 

 

12

%

Domestic

 

16,849

 

 

 

17,705

 

 

 

(856

)

 

(5

)%

Total new vehicle

 

109,910

 

 

 

95,165

 

 

 

14,745

 

 

15

%

Used vehicle retail

 

105,206

 

 

 

80,537

 

 

 

24,669

 

 

31

%

Used to new ratio

 

95.7

%

 

 

84.6

%

 

 

NM

 

 

 

Average selling price

 

 

 

 

 

 

 

New vehicle

$

44,892

 

 

$

39,588

 

 

$

5,304

 

 

13

%

Used vehicle retail

 

29,047

 

 

 

23,964

 

 

 

5,083

 

 

21

%

Average gross profit per unit

 

 

 

 

 

 

 

New vehicle:

 

 

 

 

 

 

 

Luxury

$

6,959

 

 

$

4,501

 

 

$

2,458

 

 

55

%

Import

 

3,001

 

 

 

1,144

 

 

 

1,857

 

 

162

%

Domestic

 

4,398

 

 

 

2,547

 

 

 

1,851

 

 

73

%

Total new vehicle

 

4,463

 

 

 

2,296

 

 

 

2,167

 

 

94

%

Used vehicle retail

 

2,490

 

 

 

1,804

 

 

 

686

 

 

38

%

Finance and insurance

 

1,872

 

 

 

1,736

 

 

 

136

 

 

8

%

Front end yield (1)

 

5,370

 

 

 

3,807

 

 

 

1,563

 

 

41

%

Gross margin

 

 

 

 

 

 

 

New vehicle:

 

 

 

 

 

 

 

Luxury

 

11.0

%

 

 

7.8

%

 

320 bps

 

 

Import

 

9.1

%

 

 

3.9

%

 

520 bps

 

 

Domestic

 

9.1

%

 

 

5.9

%

 

320 bps

 

 

Total new vehicle

 

9.9

%

 

 

5.8

%

 

410 bps

 

 

Used vehicle retail

 

8.6

%

 

 

7.5

%

 

110 bps

 

 

Parts and service

 

60.8

%

 

 

61.0

%

 

(20) bps

 

 

Total gross profit margin

 

19.3

%

 

 

17.2

%

 

210 bps

 

 

_____________________________
NMNot Meaningful

 

(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.

 

ASBURY AUTOMOTIVE GROUP, INC.

SAME STORE OPERATING HIGHLIGHTS-DEALERSHIPS (In millions)

(Unaudited)

 

For the Twelve Months

Ended December 31,

 

Increase

(Decrease)

 

%

Change

 

2021

 

2020

 

 

Revenue

 

 

 

 

 

 

 

New vehicle:

 

 

 

 

 

 

 

Luxury

$

1,597.4

 

 

$

1,409.3

 

 

$

188.1

 

 

13

%

Import

 

1,847.6

 

 

 

1,534.8

 

 

 

312.8

 

 

20

%

Domestic

 

730.2

 

 

 

734.8

 

 

 

(4.6

)

 

(1

)%

Total new vehicle

 

4,175.2

 

 

 

3,678.9

 

 

 

496.3

 

 

13

%

Used Vehicle:

 

 

 

 

 

 

 

Retail

 

2,621.9

 

 

 

1,872.1

 

 

 

749.8

 

 

40

%

Wholesale

 

175.1

 

 

 

235.2

 

 

 

(60.1

)

 

(26

)%

Total used vehicle

 

2,797.0

 

 

 

2,107.3

 

 

 

689.7

 

 

33

%

Parts and service

 

994.5

 

 

 

867.8

 

 

 

126.7

 

 

15

%

Finance and insurance

 

364.0

 

 

 

299.1

 

 

 

64.9

 

 

22

%

Total revenue

$

8,330.7

 

 

$

6,953.1

 

 

$

1,377.6

 

 

20

%

Gross profit

 

 

 

 

 

 

 

New vehicle:

 

 

 

 

 

 

 

Luxury

$

175.2

 

 

$

110.6

 

 

$

64.6

 

 

58

%

Import

 

163.8

 

 

 

59.4

 

 

 

104.4

 

 

176

%

Domestic

 

64.8

 

 

 

43.2

 

 

 

21.6

 

 

50

%

Total new vehicle

 

403.8

 

 

 

213.2

 

 

 

190.6

 

 

89

%

Used Vehicle:

 

 

 

 

 

 

 

Retail

 

226.5

 

 

 

141.9

 

 

 

84.6

 

 

60

%

Wholesale

 

18.9

 

 

 

11.4

 

 

 

7.5

 

 

66

%

Total used vehicle

 

245.4

 

 

 

153.3

 

 

 

92.1

 

 

60

%

Parts and service:

 

 

 

 

 

 

 

Customer pay

 

363.0

 

 

 

303.2

 

 

 

59.8

 

 

20

%

Warranty

 

78.4

 

 

 

90.2

 

 

 

(11.8

)

 

(13

)%

Wholesale parts

 

28.7

 

 

 

21.6

 

 

 

7.1

 

 

33

%

Parts and service, excluding reconditioning and preparation

 

470.1

 

 

 

415.0

 

 

 

55.1

 

 

13

%

Reconditioning and preparation

 

135.8

 

 

 

114.7

 

 

 

21.1

 

 

18

%

Total parts and service

 

605.9

 

 

 

529.7

 

 

 

76.2

 

 

14

%

Finance and insurance

 

364.0

 

 

 

299.1

 

 

 

64.9

 

 

22

%

Total gross profit

$

1,619.1

 

 

$

1,195.3

 

 

$

423.8

 

 

35

%

 

 

 

 

 

 

 

 

SG&A expense

$

931.2

 

 

$

762.9

 

 

$

168.3

 

 

22

%

SG&A expense as a percentage of gross profit

 

57.5

%

 

 

63.8

%

 

(630) bps

 

 

_____________________________

Same store amounts consist of information from dealerships for identical months in each comparative period, commencing with the first month we owned the dealership. Additionally, amounts related to divested dealerships are excluded from each comparative period.

 
 

ASBURY AUTOMOTIVE GROUP, INC.

SAME STORE OPERATING HIGHLIGHTS-DEALERSHIPS (Continued)

(Unaudited)

 

For the Twelve Months

Ended December 31,

 

Increase

(Decrease)

 

%

Change

 

2021

 

2020

 

 

Unit sales

 

 

 

 

 

 

 

New vehicle:

 

 

 

 

 

 

 

Luxury

 

25,647

 

 

 

24,526

 

 

 

1,121

 

 

5

%

Import

 

56,227

 

 

 

51,698

 

 

 

4,529

 

 

9

%

Domestic

 

15,316

 

 

 

17,009

 

 

 

(1,693

)

 

(10

)%

Total new vehicle

 

97,190

 

 

 

93,233

 

 

 

3,957

 

 

4

%

Used vehicle retail

 

93,803

 

 

 

78,144

 

 

 

15,659

 

 

20

%

Used to new ratio

 

96.5

%

 

 

83.8

%

 

 

NM

 

 

 

Average selling price

 

 

 

 

 

 

 

New vehicle

$

42,959

 

 

$

39,459

 

 

$

3,500

 

 

9

%

Used vehicle retail

 

27,951

 

 

 

23,957

 

 

 

3,994

 

 

17

%

Average gross profit per unit

 

 

 

 

 

 

 

New vehicle:

 

 

 

 

 

 

 

Luxury

$

6,831

 

 

$

4,510

 

 

$

2,321

 

 

51

%

Import

 

2,913

 

 

 

1,149

 

 

 

1,764

 

 

154

%

Domestic

 

4,231

 

 

 

2,540

 

 

 

1,691

 

 

67

%

Total new vehicle

 

4,155

 

 

 

2,287

 

 

 

1,868

 

 

82

%

Used vehicle retail

 

2,415

 

 

 

1,816

 

 

 

599

 

 

33

%

Finance and insurance

 

1,906

 

 

 

1,745

 

 

 

161

 

 

9

%

Front end yield (1)

 

5,206

 

 

 

3,817

 

 

 

1,389

 

 

36

%

Gross margin

 

 

 

 

 

 

 

New vehicle:

 

 

 

 

 

 

 

Luxury

 

11.0

%

 

 

7.8

%

 

320 bps

 

 

Import

 

8.9

%

 

 

3.9

%

 

500 bps

 

 

Domestic

 

8.9

%

 

 

5.9

%

 

300 bps

 

 

Total new vehicle

 

9.7

%

 

 

5.8

%

 

390 bps

 

 

Used vehicle retail

 

8.6

%

 

 

7.6

%

 

100 bps

 

 

Parts and service:

 

 

 

 

 

 

 

Parts and service, excluding reconditioning and preparation

 

47.3

%

 

 

47.8

%

 

(50) bps

 

 

Parts and service, including reconditioning and preparation

 

60.9

%

 

 

61.0

%

 

(10) bps

 

 

Total gross profit margin

 

19.4

%

 

 

17.2

%

 

220 bps

 

 

_____________________________
NMNot Meaningful

 

Same store amounts consist of information from dealerships for identical months in each comparative period, commencing with the first month we owned the dealership. Additionally, amounts related to divested dealerships are excluded from each comparative period.

 

(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.

 
 

ASBURY AUTOMOTIVE GROUP INC.
Supplemental Disclosures
(Unaudited)

Non-GAAP Financial Disclosure and Reconciliation

In addition to evaluating the financial condition and results of our operations in accordance with GAAP, from time to time management evaluates and analyzes results and any impact on the Company of strategic decisions and actions relating to, among other things, cost reduction, growth, and profitability improvement initiatives, and other events outside of normal, or "core," business and operations, by considering certain alternative financial measures not prepared in accordance with GAAP. These measures include "Pro forma adjusted leverage ratio," "Adjusted income from operations," "Adjusted net income," " Adjusted operating margins," and "Adjusted diluted earnings per share ("EPS")." Further, management assesses the organic growth of our revenue and gross profit on a same store basis. We believe that our assessment on a same store basis represents an important indicator of comparative financial performance and provides relevant information to assess our performance at our existing locations. Same store amounts consist of information from dealerships for identical months in each comparative period, commencing with the first month we owned the dealership. Additionally, amounts related to divested dealerships are excluded from each comparative period. Non-GAAP measures do not have definitions under GAAP and may be defined differently by and not be comparable to similarly titled measures used by other companies. As a result, any non-GAAP financial measures considered and evaluated by management are reviewed in conjunction with a review of the most directly comparable measures calculated in accordance with GAAP. Management cautions investors not to place undue reliance on such non-GAAP measures, but also to consider them with the most directly comparable GAAP measures. In their evaluation of results from time to time, management excludes items that do not arise directly from core operations, or are otherwise of an unusual or non-recurring nature. Because these non-core, unusual or non-recurring charges and gains materially affect Asbury's financial condition or results in the specific period in which they are recognized, management also evaluates, and makes resource allocation and performance evaluation decisions based on, the related non-GAAP measures excluding such items. In addition to using such non-GAAP measures to evaluate results in a specific period, management believes that such measures may provide more complete and consistent comparisons of operational performance on a period-over-period historical basis and a better indication of expected future trends. Management discloses these non-GAAP measures, and the related reconciliations, because it believes investors use these metrics in evaluating longer-term period-over-period performance, and to allow investors to better understand and evaluate the information used by management to assess operating performance.

The following tables provide reconciliations for our non-GAAP metrics:

 

For the Twelve Months Ended

 

December 31, 2021

 

September 30, 2021

 

(Dollars in millions)

Adjusted leverage ratio:

 

 

 

Long-term debt (including current portion)

$

3,582.6

 

 

$

1,371.0

 

Cash and floor plan offset

 

(272.9

)

 

 

(377.4

)

TCA restricted cash

 

127.3

 

 

 

 

Availability under our used vehicle revolving floor plan facility

 

(20.6

)

 

 

(160.0

)

Adjusted long-term net debt

$

3,416.4

 

 

$

833.6

 

 

 

 

 

Calculation of earnings before interest, taxes, depreciation and amortization ("EBITDA"):

 

 

 

Net Income

$

532.4

 

 

$

481.0

 

 

 

 

 

Depreciation and amortization

 

41.9

 

 

 

40.1

 

Income tax expense

 

165.3

 

 

 

153.0

 

Swap and other interest expense

 

94.5

 

 

 

58.4

 

Earnings before interest, taxes, depreciation and amortization ("EBITDA")

$

834.1

 

 

$

732.5

 

 

 

 

 

Non-core items - expense (income):

 

 

 

Gain on dealership divestitures

$

(8.0

)

 

$

(11.9

)

Legal settlements

 

(3.5

)

 

 

(3.5

)

Gain on sale of real estate

 

(1.9

)

 

 

(1.9

)

Professional fees associated with acquisitions

 

4.9

 

 

 

3.5

 

Real estate-related charges

 

2.1

 

 

 

2.1

 

Total non-core items

 

(6.4

)

 

 

(11.7

)

 

 

 

 

Adjusted EBITDA

$

827.7

 

 

$

720.8

 

 

 

 

 

Pro forma impact of acquisition and divestitures on EBITDA

$

440.4

 

 

$

 

Pro forma Adjusted EBITDA

$

1,268.1

 

 

$

720.8

 

 

 

 

 

Pro forma Adjusted net leverage ratio

 

2.7

 

 

 

1.2

 

 
 

 

For the Three Months

Ended December 31,

 

2021

 

2020

 

(In millions, except per share data)

Adjusted income from operations:

 

 

 

Income from operations

$

236.1

 

 

$

134.5

 

Professional fees associated with acquisitions

 

1.4

 

 

 

 

Adjusted income from operations

$

237.5

 

 

$

134.5

 

 

 

 

 

Adjusted operating margin:

 

 

 

Total revenue

$

2,654.8

 

 

$

2,234.0

 

Operating margin

 

8.9

%

 

 

6.0

%

Adjusted operating margin

 

8.9

%

 

 

6.0

%

 

 

 

 

Adjusted net income:

 

 

 

Net income

$

140.5

 

 

$

89.1

 

 

 

 

 

Non-core items - (income) expense:

 

 

 

Bridge commitment fee

 

27.5

 

 

 

 

Professional fees associated with acquisitions

 

1.4

 

 

 

 

Gain on dealership divestiture

 

 

 

 

(3.9

)

Income tax effect on non-core items above

 

(6.8

)

 

 

1.0

 

Total non-core items

 

22.1

 

 

 

(2.9

)

Adjusted net income

$

162.6

 

 

$

86.2

 

 

 

 

 

Adjusted diluted earnings per share (EPS):

 

 

 

Diluted EPS

$

6.44

 

 

$

4.59

 

 

 

 

 

Total non-core items

 

1.02

 

 

 

(0.15

)

Adjusted diluted EPS

$

7.46

 

 

$

4.44

 

 

 

 

 

Weighted average common shares outstanding - diluted

 

21.8

 

 

 

19.4

 

 

 

 

 

Adjusted selling, general, and administrative expense:

 

 

 

Selling, general, and administrative expense

$

295.7

 

 

$

228.5

 

Professional fees associated with acquisitions

 

(1.4

)

 

 

 

Adjusted selling, general, and administrative expense:

$

294.3

 

 

$

228.5

 

 

 

 

 

Adjusted selling, general, and administrative expense as a percentage of gross profit:

 

 

 

Total gross profit

$

542.3

 

 

$

372.3

 

Selling, general, and administrative expense as a percentage of gross profit

 

54.5

%

 

 

61.4

%

Adjusted selling, general, and administrative expense as a percentage of gross profit

 

54.3

%

 

 

61.4

%

 

 

For the Twelve Months

Ended December 31,

 

2021

 

2020

 

(In millions, except per share data)

Adjusted income from operations:

 

 

 

Income from operations

$

791.8

 

 

$

370.8

 

Legal settlements

 

(3.5

)

 

 

(2.1

)

Gain on sale of real estate

 

(1.9

)

 

 

(0.3

)

Real estate-related charges

 

2.1

 

 

 

0.7

 

Professional fees associated with acquisitions

 

4.9

 

 

 

1.3

 

Park Place related costs

 

 

 

 

11.6

 

Franchise rights impairment

 

 

 

 

23.0

 

Adjusted income from operations

$

793.4

 

 

$

405.0

 

 

 

 

 

Adjusted operating margin:

 

 

 

Total revenue

$

9,837.7

 

 

$

7,131.8

 

Operating margin

 

8.0

%

 

 

5.2

%

Adjusted operating margin

 

8.1

%

 

 

5.7

%

 

 

 

 

Adjusted net income:

 

 

 

Net income

$

532.4

 

 

$

254.4

 

 

 

 

 

Non-core items - (income) expense:

 

 

 

Gain on dealership divestitures

 

(8.0

)

 

 

(62.3

)

Legal settlements

 

(3.5

)

 

 

(2.1

)

Gain on sale of real estate

 

(1.9

)

 

 

(0.3

)

Bridge commitment fee

 

27.5

 

 

 

 

Professional fees associated with acquisitions

 

4.9

 

 

 

1.3

 

Real estate related charges

 

2.1

 

 

 

0.7

 

Park Place related costs

 

 

 

 

11.6

 

Loss on extinguishment of debt

 

 

 

 

20.7

 

Franchise rights impairment

 

 

 

 

23.0

 

Income tax effect on non-core items above

 

(5.0

)

 

 

1.9

 

Total non-core items

 

16.1

 

 

 

(5.5

)

Adjusted net income

$

548.5

 

 

$

248.9

 

 

 

 

 

Adjusted diluted earnings per share (EPS):

 

 

 

Diluted EPS

$

26.49

 

 

$

13.18

 

 

 

 

 

Total non-core items

 

0.80

 

 

 

(0.28

)

Adjusted diluted EPS

$

27.29

 

 

$

12.90

 

 

 

 

 

Weighted average common shares outstanding - diluted

 

20.1

 

 

 

19.3

 

 

 

 

 

Adjusted Selling, general, and administrative expense:

 

 

 

Selling, general, and administrative expense

$

1,073.9

 

 

$

781.9

 

Professional fees associated with acquisitions

 

(4.9

)

 

 

(1.3

)

Adjusted Selling, general, and administrative expense:

$

1,069.0

 

 

$

780.6

 

 

 

 

 

Adjusted selling, general, and administrative expense as a percentage of gross profit:

 

 

 

Total gross profit

$

1,902.2

 

 

$

1,223.4

 

Selling, general, and administrative expense as a percentage of gross profit

 

56.5

%

 

 

63.9

%

Adjusted selling, general, and administrative expense as a percentage of gross profit

 

56.2

%

 

 

63.8

%

 

Investors & Reporters May Contact:
Karen Reid
VP & Treasurer
(770) 418-8211
[email protected]

Source: Asbury Automotive Group, Inc.



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