Asbury Automotive Group Inc. (ABG, Financial) filed Annual Report for the period ended 2011-12-31.
Asbury Auto Grp has a market cap of $823.6 million; its shares were traded at around $25.25 with a P/E ratio of 14.1 and P/S ratio of 0.2.
The $160.0 million (7%) increase in new vehicle revenue was primarily a result of a $96.3 million (4%) 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 $63.7 million of revenue derived from acquisitions. Same store unit volumes for our mid-line import brands decreased 2%, while unit volumes from our domestic brands increased 8% 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 12.8 million for 2011 as compared to 11.6 million for 2010.
The $317.1 million (17% )increase in new vehicle revenue was primarily a result of a $309.1 million (17%) increase in same store new vehicle revenue due to an 11% increase in same store vehicle retail units sales and an 11% increase in same store fleet unit sales. Our total new vehicle revenue also benefited from $8.0 million of revenue derived from acquisitions. We believe that the increase in new vehicle retail unit sales was primarily driven by a favorable comparison with an overall weak economic environment during 2009, as well as increased consumer confidence and less stringent consumer lending standards. Unit volumes increased across each of our brand segments, consistent with overall U.S. vehicle sales. New vehicle SAAR increased to 11.6 million for 2010 as compared to 10.4 million for 2009.
Total new vehicle gross profit increased by $12.0 million (9%), which included $0.3 million of gross profit derived from acquisitions. Gross profit from our luxury and mid-line domestic brands increased $11.4 million (23%) and $5.4 million (32%), respectively, but was offset by a $5.1 million (8)% decrease in gross profit from our mid-line import brands. Gross profit per new vehicle sold decreased $46, driven primarily by the decrease in mid-line import gross profit, due to higher incentives in the 2009 period, including manufacturer incentives and the impact of the federal government's Car Allowance Rebate System Program, otherwise known as "Cash for Clunkers"; however, this decrease was more than offset by a $111 increase in F&I per vehicle sold, reflecting an improvement in total gross profit per vehicle sold during 2010.
historical operating results and the termination provisions of the applicable contracts. This data is evaluated on a product-by-product basis. Our loss histories vary depending on the product but generally total between 10% and 14% of F&I revenues. Our F&I chargebacks from continuing operations for the years ended December 31, 2011, 2010 and 2009 were $16.8 million, $13.7 million, and $11.9 million, respectively. Our chargeback reserves were $14.5 million and $12.5 million as of December 31, 2011 and December 31, 2010, respectively. Total chargebacks as a percentage of F&I revenue for the years ended December 31, 2011 and 2010, were 12%, respectively. A 1% change in our estimate for all our products would have changed finance and insurance, net on our accompanying Consolidated Statement of Income for the year ended December 31, 2011 by approximately $1.6 million.
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Asbury Auto Grp has a market cap of $823.6 million; its shares were traded at around $25.25 with a P/E ratio of 14.1 and P/S ratio of 0.2.
Highlight of Business Operations:
Net income and income from continuing operations increased by $29.8 million and $10.6 million, respectively, during 2011 as compared to 2010, primarily a result of a $70.4 million (11%) increase in gross profit, partially offset by (i) a $47.3 million (9%) increase in SG&A expenses, (ii) a $14.3 million increase in other operating expense and (iii) a $3.3 million (9%) increase in other interest expense. The increase in net income was primarily the result of the sale of our heavy truck business, two additional franchises (two dealership locations) and one ancillary business in 2011, which resulted in $22.3 million in net-of-tax gains, which are included in discontinued operations, net. Net income and income from continuing operations for 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 and income from continuing operations for 2010 were reduced by $8.3 million, net of tax, from losses on the extinguishment of long-term debt.The $160.0 million (7%) increase in new vehicle revenue was primarily a result of a $96.3 million (4%) 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 $63.7 million of revenue derived from acquisitions. Same store unit volumes for our mid-line import brands decreased 2%, while unit volumes from our domestic brands increased 8% 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 12.8 million for 2011 as compared to 11.6 million for 2010.
The $317.1 million (17% )increase in new vehicle revenue was primarily a result of a $309.1 million (17%) increase in same store new vehicle revenue due to an 11% increase in same store vehicle retail units sales and an 11% increase in same store fleet unit sales. Our total new vehicle revenue also benefited from $8.0 million of revenue derived from acquisitions. We believe that the increase in new vehicle retail unit sales was primarily driven by a favorable comparison with an overall weak economic environment during 2009, as well as increased consumer confidence and less stringent consumer lending standards. Unit volumes increased across each of our brand segments, consistent with overall U.S. vehicle sales. New vehicle SAAR increased to 11.6 million for 2010 as compared to 10.4 million for 2009.
Total new vehicle gross profit increased by $12.0 million (9%), which included $0.3 million of gross profit derived from acquisitions. Gross profit from our luxury and mid-line domestic brands increased $11.4 million (23%) and $5.4 million (32%), respectively, but was offset by a $5.1 million (8)% decrease in gross profit from our mid-line import brands. Gross profit per new vehicle sold decreased $46, driven primarily by the decrease in mid-line import gross profit, due to higher incentives in the 2009 period, including manufacturer incentives and the impact of the federal government's Car Allowance Rebate System Program, otherwise known as "Cash for Clunkers"; however, this decrease was more than offset by a $111 increase in F&I per vehicle sold, reflecting an improvement in total gross profit per vehicle sold during 2010.
historical operating results and the termination provisions of the applicable contracts. This data is evaluated on a product-by-product basis. Our loss histories vary depending on the product but generally total between 10% and 14% of F&I revenues. Our F&I chargebacks from continuing operations for the years ended December 31, 2011, 2010 and 2009 were $16.8 million, $13.7 million, and $11.9 million, respectively. Our chargeback reserves were $14.5 million and $12.5 million as of December 31, 2011 and December 31, 2010, respectively. Total chargebacks as a percentage of F&I revenue for the years ended December 31, 2011 and 2010, were 12%, respectively. A 1% change in our estimate for all our products would have changed finance and insurance, net on our accompanying Consolidated Statement of Income for the year ended December 31, 2011 by approximately $1.6 million.
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