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Asbury Automotive Group Inc. (ABG) filed Quarterly Report for the period ended 2011-09-30.
Asbury Automotive Group Inc. has a market cap of $666.2 million; its shares were traded at around $20.61 with a P/E ratio of 12.5 and P/S ratio of 0.2.
This is the annual revenues and earnings per share of ABG over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of ABG.
Highlight of Business Operations:
The $0.8 million decrease in new vehicle revenue was primarily a result of a $17.8 million (3%) decrease in same store new vehicle revenue due to an 8% decrease in same store vehicle units sold. The decrease in same store new vehicle revenue was primarily driven by a decrease in revenue from our mid-line import brands, which decreased $24.1 million (9%) when compared to the prior year quarter. Same store unit volumes from our luxury and mid-line import brands decreased 4% and 15%, respectively, while unit volumes from our domestic brands increased 5% on a same store basis, reflecting (i) a lack of available new vehicle inventory from certain Japanese brands due to the natural disasters and related events in Japan and (ii) increased consumer demand for domestic vehicles. New vehicle SAAR increased to 12.5 million for the third quarter of 2011, as compared to 11.6 million for the third quarter of 2010.The $125.3 million (8%) increase in new vehicle revenue was primarily a result of a $72.9 million (5%) increase in same store new vehicle revenue due to a 2% increase in same store new vehicle unit sales and a 3% increase in revenue per new vehicle sold. Our total new vehicle revenue also benefited from $52.4 million of revenue derived from acquisitions. Same store unit volumes from our mid-line import brands decreased 1%, while unit volumes from our domestic brands increased 9% on a same store basis, reflecting (i) reduced availability of new vehicle inventory from certain Japanese brands due to the natural disasters and related events in Japan and (ii) increased consumer demand for domestic vehicles. New vehicle SAAR increased to 12.6 million for the first nine months of 2011, as compared to 11.3 million for the first nine months of 2010.
The $42.0 million (15%) increase in used vehicle revenue consists of (i) a $33.1 million (14%) increase in same store used vehicle retail revenue and (ii) $11.9 million of used vehicle revenue derived from acquired dealerships, partially offset by a $3.0 million (6%) decrease in same store used vehicle wholesale revenue. The $0.9 million (4%) increase in used vehicle gross profit was primarily a result of $0.9 million of used vehicle retail gross profit derived from acquisitions. The increase in same store used vehicle retail revenue was driven primarily by increased unit sales volumes, while our same store retail gross profit was impacted by a lower gross profit margin of 9.4%, down 130 basis points from the prior year quarter. These results reflect (i) the continued benefits of several store-level programs, including volume-driven initiatives such as our "Asbury 121" program, a goal of retailing one used vehicle for every new vehicle retailed and (ii) our decision to reduce our supply of used vehicles through the retail channel in the third quarter of 2011, which reduced our gross profit margin when compared to the prior year quarter. The Asbury 121 program is designed to drive not only used retail volume, but to increase revenues from associated parts and service reconditioning and F&I as well.
Net income increased by $13.7 million while income from continuing operations decreased by $1.5 million during the nine months ended September 30, 2011 as compared to the nine months ended September 30, 2010. The decrease in income from continuing operations was primarily a result of (i) a $40.3 million (11%) increase in SG&A expenses, (ii) a $16.3 million increase in other operating expense and (iii) a $3.9 million (14%) increase in other interest expense, partially offset by a $56.6 million (12%) increase in gross profit. The increase in net income was primarily the result of the sale of our heavy truck business, which resulted in a $15.8 million net-of-tax gain, which is included in discontinued operations, net. Net income and income from continuing operations for the nine months ended September 30, 2011 were reduced by (i) $5.5 million, net of tax, due to legal claims related to operations from 2000 to 2006, (ii) $4.2 million, net of tax, due to expenses related to executive separation benefits and (iii) $1.1 million, net of tax, due to real estate related charges.
Net income decreased by $0.2 million while income from continuing operations increased by $2.0 million during the third quarter of 2011, as compared to the third quarter of 2010. The increase in income from continuing operations was primarily the result of a $16.2 million (10%) increase in gross profit, partially offset by (i) an $11.9 million (9%) increase in SG&A expenses, (ii) a $1.5 million increase in other operating expense and (iii) a $1.1 million (12%) increase in other interest expense. Net income and income from continuing operations for the third quarter of 2011 were reduced by (a) $1.1 million, net of tax, due to expenses related to executive separation benefits, (b) a $0.2 million, net of tax, loss on the repurchase of $8.8 million of our 3% Convertible Notes and (ii) $0.2 million, net of tax, due to real estate related charges.
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