Last10K.com

Asbury Automotive Group Inc (ABG) SEC Filing 8-K Material Event for the period ending Tuesday, May 5, 2020

Asbury Automotive Group Inc

CIK: 1144980 Ticker: ABG


Exhibit 99.1
companylogoa27.jpg
Investors & Reporters May Contact:
Matt Pettoni
VP of Finance & Treasurer
(770) 418-8219
ir@asburyauto.com

 

ASBURY AUTOMOTIVE GROUP ANNOUNCES
2020 FIRST QUARTER FINANCIAL RESULTS
First quarter EPS of $1.01 per diluted share,
down 52% over prior year EPS

First quarter adjusted EPS of $1.80 per diluted share
(a non-GAAP measure), down 18% over prior year adjusted EPS
DULUTH, GA, May 5, 2020 - Asbury Automotive Group, Inc. (NYSE: ABG), one of the largest automotive retail and service companies in the U.S., reported net income for the first quarter 2020 of $19.5 million ($1.01 per diluted share) and adjusted net income (a non-GAAP measure) of $34.7 million ($1.80 per diluted share). This compares to net income of $40.9 million ($2.11 per diluted share) and adjusted net income of $42.7 million ($2.20 per diluted share) in the prior year quarter.
Net income for the first quarter 2020 was adjusted for the following pre-tax items: gain on dealership divestitures of $33.7 million ($1.30 per diluted share), gain on legal settlements of $0.9 million ($0.03 per diluted share), gain on the sale of vacant property $0.3 million or ($0.01 per diluted share), franchise rights impairment of $23.0 million ($0.89 per diluted share), loss on debt extinguishment of $20.7 million ($0.79 per diluted share), and Park Place deal termination costs of $11.6 million ($0.45 per diluted share). Net income for the first quarter 2019 was adjusted for a fixed asset write-off of $2.4 million ($0.09 per diluted share).
“The quarter started off very strong with February year-to-date revenue, gross profit, and adjusted EPS up 10%, 12%, and 31%, respectively; however, our March results were significantly impacted by the COVID-19 pandemic. Our team acted decisively to right-size our business, reduced expenses, deferred most capital expenditures, and focus on our omni-channel sales initiatives.” said David Hult, Asbury's President and Chief Executive Officer. “In addition, we also drew down our credit facilities to maximize our liquidity. As we manage through this crisis, our top priorities are maintaining the health and safety of our employees and guests and preserving the financial strength of our company.”




1



First Quarter 2020 Operational Summary
Total company:
Total revenue decreased 4%; gross profit decreased 2%
SG&A as a percentage of gross profit increased 310 basis points to 71.5%
Adjusted income from operations decreased 15%
Adjusted EPS decreased 18%
Same store:
Total revenue decreased 6%; gross profit decreased 5%
New vehicle revenue decreased 7%; gross profit decreased 8%
Used vehicle retail revenue decreased 5%; gross profit decreased 11%
Finance and insurance revenue and gross profit decreased 3%
Parts and service revenue decreased 1%; gross profit decreased 3%
Strategic Highlights:
Terminated our agreement to acquire 20 Park Place luxury franchises.
Acquired a Chrysler Jeep Dodge Ram store in the Denver market in late January 2020. We expect this store to generate approximately $124 million in annual revenues.
Divested all five stores in the Mississippi market in March 2020. These dealerships generated approximately $334 million in annualized revenue.
Divested our Nissan Atlanta store in February 2020. This dealership generated approximately $77 million in annualized revenue.
Refinanced our $600 million 6% notes due in 2024, lowered average rate to 4.63%, and extended the maturities to 2028 and 2030.
Additional commentary regarding the first quarter results will be provided during the earnings conference call on May 5, 2020 at 11:00 a.m. The conference call will be simulcast live on the internet and can be accessed at www.asburyauto.com or www.ccbn.com. A replay will be available at these sites for 30 days.
In addition, a live audio of the call will be accessible to the public by calling (800) 347-6311 (domestic), or (323) 994-2131 (international); passcode - 5313580. 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 - 5313580.
About Asbury Automotive Group, Inc.
Asbury Automotive Group, Inc. ("Asbury"), a Fortune 500 company headquartered in Duluth, GA, is one of the largest automotive retailers in the U.S.  Asbury currently operates 83 dealerships, consisting of 102 franchises, representing 31 domestic and foreign brands of vehicles.  Asbury also operates 24 collision repair centers.  Asbury offers customers an extensive range of automotive products and services, including new and used vehicle sales and related financing and insurance, vehicle maintenance and repair services, replacement parts and service contracts.



2



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, and other initiatives and future business strategy. 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, market factors, Asbury's relationships with, and the financial and operational stability of, vehicle manufacturers and other suppliers, acts of God or other incidents which may adversely impact supply from vehicle manufacturers and/or present retail sales challenges, risks associated with Asbury's indebtedness (including available borrowing capacity, compliance with its financial covenants and ability to refinance or repay such indebtedness, on favorable terms), Asbury's relationships with, and the financial stability of, its lenders and lessors, 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 IT initiatives and other operational strategies, 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.


3



ASBURY AUTOMOTIVE GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share data)
(Unaudited)
 
For the Three Months Ended March 31,
 
Increase
(Decrease)
 
%
Change
 
2020
 
2019
 
 
REVENUE:
 
 
 
 
 
 
 
New vehicle
$
822.1

 
$
871.8

 
$
(49.7
)
 
(6
)%
Used vehicle:
 
 
 
 


 


Retail
446.0

 
458.2

 
(12.2
)
 
(3
)%
Wholesale
47.2

 
51.7

 
(4.5
)
 
(9
)%
     Total used vehicle
493.2

 
509.9

 
(16.7
)
 
(3
)%
Parts and service
221.6

 
217.6

 
4.0

 
2
 %
Finance and insurance, net
70.4

 
71.5

 
(1.1
)
 
(2
)%
TOTAL REVENUE
1,607.3

 
1,670.8

 
(63.5
)
 
(4
)%
GROSS PROFIT:
 
 
 
 
 
 
 
New vehicle
36.4

 
37.9

 
(1.5
)
 
(4
)%
Used vehicle:
 
 
 
 


 


Retail
31.2

 
33.6

 
(2.4
)
 
(7
)%
Wholesale
(0.5
)
 
0.9

 
(1.4
)
 
(156
)%
     Total used vehicle
30.7

 
34.5

 
(3.8
)
 
(11
)%
Parts and service
134.9

 
135.3

 
(0.4
)
 
 %
Finance and insurance, net
70.4

 
71.5

 
(1.1
)
 
(2
)%
TOTAL GROSS PROFIT
272.4

 
279.2

 
(6.8
)
 
(2
)%
OPERATING EXPENSES:
 
 
 
 
 
 
 
Selling, general and administrative
194.7

 
191.0

 
3.7

 
2
 %
Depreciation and amortization
9.5

 
8.6

 
0.9

 
10
 %
Franchise rights impairment
23.0

 

 
23.0

 
 %
Other operating expense, net
10.2

 
1.8

 
8.4

 
NM

INCOME FROM OPERATIONS
35.0

 
77.8

 
(42.8
)
 
(55
)%
OTHER EXPENSES (INCOME):
 
 
 
 
 
 
 
Floor plan interest expense
7.0

 
10.2

 
(3.2
)
 
(31
)%
Other interest expense, net
17.0

 
13.9

 
3.1

 
22
 %
Loss on extinguishment of long-term debt, net
20.6

 

 
20.6

 
 %
Gain on dealership divestitures, net
(33.7
)
 

 
(33.7
)
 
 %
Total other expenses, net
10.9

 
24.1

 
(13.2
)
 
(55
)%
INCOME BEFORE INCOME TAXES
24.1

 
53.7

 
(29.6
)
 
(55
)%
Income tax expense
4.6

 
12.8

 
(8.2
)
 
(64
)%
NET INCOME
$
19.5

 
$
40.9

 
$
(21.4
)
 
(52
)%
EARNINGS PER COMMON SHARE:
 
 
 
 
 
 
 
Basic—
 
 
 
 
 
 
 
Net income
$
1.02

 
$
2.13

 
$
(1.11
)
 
(52
)%
Diluted—
 
 
 
 
 
 
 
Net income
$
1.01

 
$
2.11

 
$
(1.10
)
 
(52
)%
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
Basic
19.1

 
19.2

 
(0.1
)
 
(1
)%
Restricted stock
0.1

 
0.1

 

 
 %
Performance share units
0.1

 
0.1

 

 
 %
Diluted
19.3

 
19.4

 
(0.1
)
 
(1
)%
______________________________
NMNot Meaningful





4



ASBURY AUTOMOTIVE GROUP, INC.
KEY OPERATING HIGHLIGHTS (In millions, except per unit data)
(Unaudited)
 
For the Three Months Ended March 31,
 
Increase
(Decrease)
 
%
Change
 
2020
 
2019
 
 
Unit sales
 
 
 
 
 
 
 
New vehicle:
 
 
 
 
 
 
 
Luxury
4,992

 
5,162

 
(170
)
 
(3
)%
Import
12,458

 
14,443

 
(1,985
)
 
(14
)%
Domestic
4,527

 
4,504

 
23

 
1
 %
     Total new vehicle
21,977

 
24,109

 
(2,132
)
 
(9
)%
Used vehicle retail
20,287

 
21,083

 
(796
)
 
(4
)%
Used to new ratio
92.3
 %
 
87.4
%
 
490 bps

 
 
Average selling price
 
 
 
 
 
 
 
New vehicle
$
37,407

 
$
36,161

 
$
1,246

 
3
 %
Used vehicle retail
21,985

 
21,733

 
252

 
1
 %
Average gross profit per unit
 
 
 
 
 
 
 
New vehicle:
 
 
 
 


 


Luxury
$
3,385

 
$
3,700

 
$
(315
)
 
(9
)%
Import
851

 
810

 
41

 
5
 %
Domestic
1,966

 
1,576

 
390

 
25
 %
Total new vehicle
1,656

 
1,572

 
84

 
5
 %
Used vehicle retail
1,538

 
1,594

 
(56
)
 
(4
)%
Finance and insurance, net
1,666

 
1,582

 
84

 
5
 %
Front end yield (1)
3,265

 
3,164

 
101

 
3
 %
Gross margin
 
 
 
 
 
 
 
New vehicle:
 
 
 
 
 
 
 
Luxury
6.1
 %
 
6.6
%
 
(50) bps

 
 
Import
3.0
 %
 
2.9
%
 
10 bps

 
 
Domestic
4.7
 %
 
4.0
%
 
70 bps

 
 
Total new vehicle
4.4
 %
 
4.3
%
 
10 bps

 
 
Used vehicle retail
7.0
 %
 
7.3
%
 
(30) bps

 
 
Parts and service
60.9
 %
 
62.2
%
 
(130) bps

 
 
Total gross profit margin
16.9
 %
 
16.7
%
 
20 bps

 
 
SG&A metrics
 
 
 
 
 
 
 
Rent expense
$
6.8

 
$
6.8

 
$

 
 %
Total SG&A as a percentage of gross profit
71.5
 %
 
68.4
%
 
310 bps

 
 
SG&A, excluding rent expense as a percentage of gross profit
69.0
 %
 
66.0
%
 
300 bps

 
 
Operating metrics
 
 
 
 
 
 
 
Income from operations as a percentage of revenue
2.2
 %
 
4.7
%
 
(250
) bps
 
 
Income from operations as a percentage of gross profit
12.8
 %
 
27.9
%
 
(1,510
) bps
 
 
Adjusted income from operations as a percentage of revenue
4.3
 %
 
4.8
%
 
(50
) bps
 
 
Adjusted income from operations as a percentage of gross profit
25.1
 %
 
28.7
%
 
(360) bps

 
 
Revenue mix
 
 
 
 
 
 
 
New vehicle
51.1
 %
 
52.2
%
 
 
 
 
Used vehicle retail
27.8
 %
 
27.4
%
 
 
 
 
Used vehicle wholesale
2.9
 %
 
3.1
%
 
 
 
 
Parts and service
13.8
 %
 
13.0
%
 
 
 
 
Finance and insurance
4.4
 %
 
4.3
%
 
 
 
 
     Total revenue
100.0
 %
 
100.0
%
 
 
 
 
Gross profit mix
 
 
 
 
 
 
 
New vehicle
13.4
 %
 
13.6
%
 
 
 
 
Used vehicle retail
11.5
 %
 
12.0
%
 
 
 
 
Used vehicle wholesale
(0.2
)%
 
0.3
%
 
 
 
 
Parts and service
49.5
 %
 
48.5
%
 
 
 
 
Finance and insurance
25.8
 %
 
25.6
%
 
 
 
 
     Total gross profit
100.0
 %
 
100.0
%
 
 
 
 
_____________________________
(1)
Front end yield is calculated as gross profit from new vehicles, used retail vehicles and finance and insurance (net), divided by combined new and used retail unit sales.

5



ASBURY AUTOMOTIVE GROUP, INC.
SAME STORE OPERATING HIGHLIGHTS (In millions)
(Unaudited)
 
For the Three Months Ended March 31,
 
Increase
(Decrease)
 
%
Change
 
2020
 
2019
 
 
Revenue
 
 
 
 
 
 
 
New vehicle:
 
 
 
 
 
 
 
Luxury
$
275.7

 
$
287.5

 
$
(11.8
)
 
(4
)%
Import
323.3

 
359.6

 
(36.3
)
 
(10
)%
Domestic
146.4

 
155.7

 
(9.3
)
 
(6
)%
     Total new vehicle
745.4

 
802.8

 
(57.4
)
 
(7
)%
Used Vehicle:
 
 
 
 
 
 
 
Retail
404.5

 
426.6

 
(22.1
)
 
(5
)%
Wholesale
43.4

 
47.2

 
(3.8
)
 
(8
)%
     Total used vehicle
447.9

 
473.8

 
(25.9
)
 
(5
)%
Parts and service
203.5

 
204.6

 
(1.1
)
 
(1
)%
Finance and insurance, net
64.4

 
66.2

 
(1.8
)
 
(3
)%
Total revenue
$
1,461.2

 
$
1,547.4

 
$
(86.2
)
 
(6
)%
 
 
 
 
 
 
 
 
Gross profit
 
 
 
 
 
 
 
New vehicle:
 
 
 
 
 
 
 
Luxury
$
17.0

 
$
19.1

 
$
(2.1
)
 
(11
)%
Import
9.3

 
10.4

 
(1.1
)
 
(11
)%
Domestic
6.9

 
6.4

 
0.5

 
8
 %
     Total new vehicle
33.2

 
35.9

 
(2.7
)
 
(8
)%
Used Vehicle:
 
 
 
 
 
 
 
Retail
28.3

 
31.8

 
(3.5
)
 
(11
)%
Wholesale
(0.5
)
 
0.8

 
(1.3
)
 
(163
)%
     Total used vehicle
27.8

 
32.6

 
(4.8
)
 
(15
)%
Parts and service:
 
 
 
 
 
 
 
Customer pay
72.5

 
73.3

 
(0.8
)
 
(1
)%
Warranty
19.7

 
20.6

 
(0.9
)
 
(4
)%
Wholesale parts
4.6

 
5.5

 
(0.9
)
 
(16
)%
     Parts and service, excluding reconditioning and preparation
96.8

 
99.4

 
(2.6
)
 
(3
)%
Reconditioning and preparation
27.3

 
28.0

 
(0.7
)
 
(3
)%
Total parts and service
124.1

 
127.4

 
(3.3
)
 
(3
)%
Finance and insurance
64.4

 
66.2

 
(1.8
)
 
(3
)%
Total gross profit
$
249.5

 
$
262.1

 
$
(12.6
)
 
(5
)%
 
 
 
 
 
 
 
 
SG&A expense
$
178.5

 
$
179.1

 
$
(0.6
)
 
 %
SG&A expense as a percentage of gross profit
71.5
%
 
68.3
%
 
320 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.












6



ASBURY AUTOMOTIVE GROUP, INC.
SAME STORE OPERATING HIGHLIGHTS (Continued)
(Unaudited)
 
For the Three Months Ended March 31,
 
Increase
(Decrease)
 
%
Change
 
2020
 
2019
 
 
Unit sales
 
 
 
 
 
 
 
New vehicle:
 
 
 
 
 
 
 
Luxury
4,977

 
5,132

 
(155
)
 
(3
)%
Import
11,340

 
12,842

 
(1,502
)
 
(12
)%
Domestic
3,596

 
3,952

 
(356
)
 
(9
)%
     Total new vehicle
19,913

 
21,926

 
(2,013
)
 
(9
)%
Used vehicle retail
18,230

 
19,510

 
(1,280
)
 
(7
)%
Used to new ratio
91.5
%
 
89.0
%
 
250 bps

 
 
 
 
 
 
 
 
 
 
Average selling price
 
 
 
 
 
 
 
New vehicle
$
37,433

 
$
36,614

 
$
819

 
2
 %
Used vehicle retail
22,189

 
21,866

 
323

 
1
 %
 
 
 
 
 
 
 
 
Average gross profit per unit
 
 
 
 
 
 
 
New vehicle:
 
 
 
 


 


Luxury
$
3,416

 
$
3,722

 
$
(306
)
 
(8
)%
Import
820

 
810

 
10

 
1
 %
Domestic
1,919

 
1,619

 
300

 
19
 %
Total new vehicle
1,667

 
1,637

 
30

 
2
 %
Used vehicle retail
1,552

 
1,630

 
(78
)
 
(5
)%
Finance and insurance, net
1,688

 
1,598

 
90

 
6
 %
Front end yield (1)
3,301

 
3,231

 
70

 
2
 %
 
 
 
 
 
 
 
 
Gross margin
 
 
 
 
 
 
 
New vehicle:
 
 
 
 
 
 
 
Luxury
6.2
%
 
6.6
%
 
(40) bps

 
 
Import
2.9
%
 
2.9
%
 
0 bps

 
 
Domestic
4.7
%
 
4.1
%
 
60 bps

 
 
Total new vehicle
4.5
%
 
4.5
%
 
0 bps

 
 
Used vehicle retail
7.0
%
 
7.5
%
 
(50) bps

 
 
Parts and service:
 
 
 
 
 
 
 
Parts and service, excluding reconditioning and preparation
47.6
%
 
48.6
%
 
(100) bps

 
 
Parts and service, including reconditioning and preparation
61.0
%
 
62.3
%
 
(130) bps

 
 
Total gross profit margin
17.1
%
 
16.9
%
 
20 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.

(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.


7



ASBURY AUTOMOTIVE GROUP, INC.
Additional Disclosures (In millions)
(Unaudited)
 
 
March 31, 2020
 
December 31, 2019
 
Increase
(Decrease)
 
% Change
SELECTED BALANCE SHEET DATA
 
  
 
  
 
 
 
Cash and cash equivalents
$
388.6

  
$
3.5

  
$
385.1

 
11,003
 %
New vehicle inventory
861.1

 
802.6

(a)  
58.5

 
7
 %
Used vehicle inventory
158.0

 
140.1

(b)  
17.9

 
13
 %
Parts inventory
40.6

 
42.3

(c)  
(1.7
)
 
(4
)%
Total current assets
1,753.2

 
1,602.6

  
150.6

 
9
 %
Floor plan notes payable
848.5

 
788.0

(d)  
60.5

 
8
 %
Total current liabilities
1,186.0

 
1,247.0

  
(61.0
)
 
(5
)%
 
 
 
 
 
 
 
 
CAPITALIZATION:
 
 
 
  
 
 
 
Long-term debt (including current portion)
$
1,164.9

*
$
939.4

(e)  
$
225.5

 
24
 %
Shareholders' equity
660.9

  
646.3

  
14.6

 
2
 %
Total
$
1,825.8

  
$
1,585.7

  
$
240.1

 
15
 %
_____________________________
*Includes $237.0 million drawn on the Revolver as of March 31, 2020

(a) Excluding $56.3 million of new vehicle inventory classified as Assets held for sale as of December 31, 2019
(b) Excluding $8.6 million of used vehicle inventory classified as Assets held for sale as of December 31, 2019
(c) Excluding $2.8 million of parts inventory classified as Assets held for sale as of December 31, 2019
(d) Excluding $62.8 million of Floor plan notes payable classified as Liabilities associated with assets held for sale as of December 31, 2019
(e) Excluding $28.1 million of Long-term debt classified as Liabilities associated with assets held for sale as of December 31, 2019

 
March 31, 2020
 
December 31, 2019
DAYS SUPPLY
 
 
 
New vehicle inventory
105

  
66

Used vehicle inventory
42

  
29

_____________________________
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.







8



Brand Mix - New Vehicle Revenue by Brand-  
 
For the Three Months Ended March 31,
 
2020
 
2019
Luxury:
 
 
 
Mercedes-Benz
8
%
 
7
%
Lexus
7
%
 
6
%
BMW
6
%
 
6
%
Acura
4
%
 
4
%
Infiniti
2
%
 
3
%
Other luxury
7
%
 
7
%
Total luxury
34
%
 
33
%
Imports:
 
 
 
Honda
17
%
 
19
%
Toyota
13
%
 
12
%
Nissan
7
%
 
11
%
Other imports
6
%
 
5
%
Total imports
43
%
 
47
%
Domestic:
 
 
 
Ford
10
%
 
9
%
Chevrolet
6
%
 
6
%
Dodge
4
%
 
2
%
Other domestics
3
%
 
3
%
Total domestic
23
%
 
20
%
Total New Vehicle Revenue
100
%
 
100
%
 








 

9



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 "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.



















10



The following tables provide reconciliations for our non-GAAP metrics:
 
For the Twelve Months Ended
 
March 31, 2020
 
December 31, 2019
 
(Dollars in millions)
Adjusted leverage ratio:
 
 
 
Long-term debt (including current portion and HFS)
$
1,164.9

 
$
967.5

 
 
 
 
Calculation of earnings before interest, taxes, depreciation and amortization ("EBITDA"):
 
 
 
Net Income
$
163.0

 
$
184.4

 
 
 
 
Add:
 
 
 
Depreciation and amortization
37.1

 
36.2

Income tax expense
51.5

 
59.5

Swap and other interest expense
58.5

 
54.9

Earnings before interest, taxes, depreciation and amortization ("EBITDA")
$
310.1

 
$
335.0

 
 
 
 
Non-core items - expense (income):
 
 
 
Gain on dealership divestitures
$
(45.4
)
 
$
(11.7
)
Legal settlements
(1.5
)
 
$
(0.6
)
Gain on sale of real estate
(0.6
)
 
(0.3
)
Franchise rights impairment
30.1

 
7.1

Real estate-related charges
0.6

 
0.6

Park Place deal termination costs
11.6

 

Loss on debt extinguishment
20.7

 

Fixed assets write-off

 
2.4

  Total non-core items
15.5

 
(2.5
)
 
 
 
 
Adjusted EBITDA
$
325.6

 
$
332.5

 
 
 
 
Adjusted leverage ratio
3.6

 
2.9











 
 
 
 

11



 
For the Three Months Ended March 31,
 
2020
 
2019
 
(In millions, except per share data)
Adjusted income from operations:
 
 
 
Income from operations
$
35.0

 
$
77.8

Legal settlements
(0.9
)
 

Gain on sale of real estate
(0.3
)
 

Park Place deal termination costs
11.6

 

Franchise rights impairment
23.0

 

Fixed assets write-off

 
2.4

Adjusted income from operations
$
68.4

 
$
80.2

 
 
 
 
Adjusted net income:
 
 
 
Net income
$
19.5

 
$
40.9

 
 
 
 
Non-core items - (income) expense:
 
  
 
Gain on dealership divestitures
(33.7
)
 

Legal settlements
(0.9
)
 

Gain on sale of real estate
(0.3
)
 

Park Place deal termination costs
11.6

 

Loss on extinguishment of debt
20.7

 

Franchise rights impairment
23.0

 

Fixed assets write-off

 
2.4

Income tax effect on non-core items above
(5.2
)
 
(0.6
)
Total non-core items
15.2

  
1.8

Adjusted net income
$
34.7

  
$
42.7

 
 
 
 
Adjusted diluted earnings per share (EPS):
 
 
 
Diluted EPS
$
1.01

 
$
2.11

 
 
 
 
Total non-core items
0.79

 
0.09

Adjusted diluted EPS
$
1.80

 
$
2.20

 
 
 
 
Weighted average common shares outstanding - diluted
19.3
 
19.4



12

View differences made from one to another to evaluate Asbury Automotive Group Inc's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Asbury Automotive Group Inc.

Continue

Assess how Asbury Automotive Group Inc's management team is paid from their Annual Proxy

Definitive Proxy Statement (Form DEF 14A)
Screenshot example of actual Proxy Statement

Asbury Automotive Group Inc's Definitive Proxy Statement (Form DEF 14A) filed after their 2020 10-K Annual Report includes:

  • Voting Procedures
  • Board Members
  • Executive Team
  • Salaries, Bonuses, Perks
  • Peers / Competitors

Continue

SEC Filing Tools

Financial Statements, Disclosures and Schedules

Inside this 8-K Corporate News

Material Contracts, Statements, Certifications & more

Asbury Automotive Group Inc provided additional information to their SEC Filing as exhibits

Ticker: ABG
CIK: 1144980
Form Type: 8-K Corporate News
Accession Number: 0001144980-20-000096
Submitted to the SEC: Tue May 05 2020 6:15:00 AM EST
Accepted by the SEC: Tue May 05 2020
Period: Tuesday, May 5, 2020
Industry: Retail Auto Dealers And Gasoline Stations
Events:
  1. Earnings Release
  2. Financial Exhibit

External Resources:
Stock Quote
Social Media

Bookmark the Permalink:
https://last10k.com/sec-filings/abg/0001144980-20-000096.htm