Asbury Automotive Group Inc. (ABG, Financial) filed Quarterly Report for the period ended 2009-03-31.
Asbury Automotive Group is one of the largest automotive retailers in the United States. They sell finance and service a diverse range of foreign and domestic automobile brands. Asbury Automotive Group Inc. has a market cap of $291.8 million; its shares were traded at around $9.09 with a P/E ratio of 10. Asbury Automotive Group Inc. had an annual average earning growth of 7.6% over the past 5 years.
Net income and income from continuing operations decreased $9.8 million and $8.2 million, respectively, during the first quarter of 2009, as compared to the first quarter of 2008, primarily as a result of a $46.7 million (24%) decrease in gross profit, partially offset by a $32.4 million (21%) decrease in SG&A expense and $3.4 million (40%) decrease in floor plan interest expense. Losses from discontinued operations increased $1.6 million, net of tax, during 2009 as compa
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Asbury Automotive Group is one of the largest automotive retailers in the United States. They sell finance and service a diverse range of foreign and domestic automobile brands. Asbury Automotive Group Inc. has a market cap of $291.8 million; its shares were traded at around $9.09 with a P/E ratio of 10. Asbury Automotive Group Inc. had an annual average earning growth of 7.6% over the past 5 years.
Highlight of Business Operations:
We are subject to a number of financial covenants in our various debt and lease agreements. In April 2009, we obtained a waiver for one of our stores associated with the violation of a store-level covenant under a Master Loan Agreement with Wachovia Bank, National Association, a national banking association, and Wachovia Financial Services, Inc., a North Carolina corporation (collectively referred to as, Wachovia, and the Master Loan Agreement being referred to as, the Wachovia Master Loan Agreement). Other than this occurrence, we were in compliance with all of our financial covenants as of March 31, 2009. In order to satisfy certain of our financial covenants, we relied in part upon income recognized in the fourth quarter of 2008 in connection with repurchases of our outstanding debt securities at a significant discount, which increased our Consolidated Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), as defined under our debt agreements, by $34.2 million in the fourth quarter of 2008. Our Board of Directors has authorized us to use up to an additional $50.0 million of cash to repurchase debt securities and/or make unscheduled principal payments on our existing mortgages. The timing and amount of repurchases of our debt, if any, is at the discretion of management. Currently, our BofA Revolving Credit Facility and our JPMorgan Used Vehicle Floor Plan Facility (as defined under Liquidity and Capital Resources below) limit our ability to purchase our debt securities to $30.0 million per calendar year, plus 50% of the net proceeds from asset sales during any given calendar year.Net income and income from continuing operations decreased $9.8 million and $8.2 million, respectively, during the first quarter of 2009, as compared to the first quarter of 2008, primarily as a result of a $46.7 million (24%) decrease in gross profit, partially offset by a $32.4 million (21%) decrease in SG&A expense and $3.4 million (40%) decrease in floor plan interest expense. Losses from discontinued operations increased $1.6 million, net of tax, during 2009 as compa
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