Thu Oct 27 2022
Asbury Automotive Group Reports Record Third Quarter 2022 Financial Results
-
Third quarter net income of
$205 million , an increase of 39% over prior year quarter, and an increase of 43% over prior year quarter on an adjusted net income (a non-GAAP measure) basis (no adjustments in current quarter) -
Third quarter adjusted EBITDA (a non-GAAP measure) increased 54% over prior year quarter to
$329 million -
Record third quarter EPS of
$9.23 per diluted share, an increase of 22% over prior year quarter on a GAAP basis and 25% on an adjusted basis (no adjustments in the current quarter) -
Third quarter revenue of
$3.9 billion , an increase of 61% over prior year quarter -
Gross profit of
$768 million , an increase of 60% over prior year quarter; operating margin of 8.1% - Third quarter fixed operations revenue increased 80% over prior year quarter
- Third quarter F&I revenue increased 99% over prior year quarter
-
The estimated, pretax impact of store closures due to Hurricane Ian was
$4.0 million ($0.14 earnings per diluted share)
“This quarter, our team navigated a challenging macro environment, including the impact of Hurricane Ian, to drive strong results. With our great team members across the country, the right brands, and the right locations, we delivered for our shareholders and showcased the resiliency of our business model,” said
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.
There were no adjustments to net income in the third quarter 2022.
Adjusted net income for the third quarter 2021 excludes acquisition expenses of
Third Quarter 2022 Operational Summary
Total company vs. 3rd Quarter 2021:
-
Revenue of
$3.9 billion , an increase of 61% - Gross profit increased 60%
- Gross margin decreased 10 bps to 19.9%
- New vehicle unit volume increased 47%; new vehicle revenue increased 59%; gross profit increased 60%
- Used vehicle retail unit volume increased 40%; used vehicle retail revenue increased 52%; gross profit increased 22%
- Finance and insurance (F&I) per vehicle retailed (PVR) increased 30%
- Parts and service revenue increased 80%; gross profit increased 64%
- Adjusted SG&A as a percentage of gross profit increased to 57.1%, an increase of 180 bps
- Operating income and adjusted operating income increased 56% and 53%, respectively
- Operating margin decreased 20 bps to 8.1% and adjusted operating margin decreased 40 bps to 8.1%
-
EPS increased 22% to
$9.23 ; adjusted EPS increased 25% to$9.23
Same store (dealership only) vs. 3rd Quarter 2021:
- Revenue decreased 3%
- Gross profit decreased 2%
- Gross margin expanded 10 bps to 20.0%
- New vehicle unit volume decreased 16%; new vehicle revenue decreased 7%; new vehicle gross profit decreased 4%
- Used vehicle retail unit volume decreased 10%; used vehicle retail revenue was flat; used vehicle retail gross profit decreased 30%; used to new ratio increased to 120%
- F&I PVR increased 18%
- Parts and service revenue increased 12%; gross profit increased 10%; customer pay gross profit increased 16%
- Adjusted SG&A as a percentage of gross profit increased to 55.8%, an increase of 50 bps
Clicklane metrics:
- Over 6,800 vehicles sold, an all-time record and an increase of 13% over prior year quarter
-
Over 92% of transactions were customers incremental to
Asbury Automotive - 41% of Clicklane sales had a trade-in and, of those with payoffs, 100% utilized the payoff tool
-
Total front-end PVR of
$3,450 and F&I PVR of$2,093 , resulting in total front-end yield of$5,543 - Conversion rate more than double that of traditional internet leads and growing sequentially
- 95% of deliveries within a 20-mile radius of an Asbury dealership
- Average transaction time of ~8 minutes for cash deals and ~14 minutes for financed deals
- Clicklane now has been fully rolled out to all dealerships
Liquidity and Leverage
As of
Earnings Call
Additional commentary regarding the third quarter results will be provided during the earnings conference call on
The conference call will be simulcast live on the internet and can be accessed by logging onto https://investors.asburyauto.com. 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 (866) 580-3963 (domestic) or +1 (786) 697-3501 (international); confirmation code – 9193183. 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 (866) 595-5357; passcode – 9193183.
About
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, objectives, projections regarding Asbury's financial position, liquidity, results of operations, cash flows, leverage, market position and dealership portfolio, revenue enhancement strategies, operational improvements, projections regarding the expected benefits of Clicklane, management’s plans, projections and objectives for future operations, scale and performance, integration plans and expected synergies from acquisitions, capital allocation strategy, business strategy and expectations of our management with respect to, among other things: changes in general economic and business conditions, including increases in interest rates and rising fuel prices, any impact of COVID-19 on the automotive industry in general, the automotive retail industry in particular and our customers, suppliers, vendors and business partners; our relationships with vehicle manufacturers; our ability to maintain our margins; operating cash flows and availability of capital; capital expenditures; the amount of our indebtedness; the completion of any future acquisitions and divestitures; future return targets; future annual savings; general economic trends, including consumer confidence levels, interest rates, inflation, and fuel prices; and automotive retail industry trends. 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 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 therefrom; any impact from the 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, acts of war or other incidents and the shortage of semiconductor chips and other components, 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, including changes in automotive state franchise laws, 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
Non-GAAP Financial Disclosure and Reconciliation, Same Store Data and Other Data
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," "Adjusted EBITDA" 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.
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.
Amounts presented herein have been calculated using non-rounded amounts for all periods presented and therefore certain amounts may not compute or tie to prior presentation due to rounding.
|
CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share data) (Unaudited)
|
|||||||||||||||||||||
|
|
For the Three Months
|
|
%
|
|
For the Nine Months
|
|
%
|
||||||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
2022 |
|
|
|
2021 |
|
|
||||
|
REVENUE: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
New vehicle |
$ |
1,799.2 |
|
|
$ |
1,129.5 |
|
|
59 |
% |
|
$ |
5,519.3 |
|
|
$ |
3,649.6 |
|
|
51 |
% |
|
Used vehicle: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Retail |
|
1,249.8 |
|
|
|
823.8 |
|
|
52 |
% |
|
|
3,739.5 |
|
|
|
2,190.5 |
|
|
71 |
% |
|
Wholesale |
|
80.9 |
|
|
|
55.3 |
|
|
46 |
% |
|
|
304.6 |
|
|
|
195.5 |
|
|
56 |
% |
|
Total used vehicle |
|
1,330.7 |
|
|
|
879.1 |
|
|
51 |
% |
|
|
4,044.1 |
|
|
|
2,386.1 |
|
|
69 |
% |
|
Parts and service |
|
536.1 |
|
|
|
297.1 |
|
|
80 |
% |
|
|
1,558.2 |
|
|
|
851.5 |
|
|
83 |
% |
|
Finance and insurance |
|
200.0 |
|
|
|
100.4 |
|
|
99 |
% |
|
|
606.4 |
|
|
|
295.7 |
|
|
105 |
% |
|
TOTAL REVENUE |
|
3,865.9 |
|
|
|
2,406.1 |
|
|
61 |
% |
|
|
11,727.9 |
|
|
|
7,182.9 |
|
|
63 |
% |
|
COST OF SALES: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
New vehicle |
|
1,598.0 |
|
|
|
1,003.5 |
|
|
59 |
% |
|
|
4,873.7 |
|
|
|
3,324.0 |
|
|
47 |
% |
|
Used vehicle: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Retail |
|
1,165.8 |
|
|
|
755.2 |
|
|
54 |
% |
|
|
3,459.0 |
|
|
|
2,001.0 |
|
|
73 |
% |
|
Wholesale |
|
82.8 |
|
|
|
51.8 |
|
|
60 |
% |
|
|
299.6 |
|
|
|
173.7 |
|
|
73 |
% |
|
Total used vehicle |
|
1,248.6 |
|
|
|
806.9 |
|
|
55 |
% |
|
|
3,758.5 |
|
|
|
2,174.7 |
|
|
73 |
% |
|
Parts and service |
|
238.5 |
|
|
|
115.7 |
|
|
106 |
% |
|
|
693.6 |
|
|
|
324.4 |
|
|
114 |
% |
|
Finance and insurance |
|
13.0 |
|
|
|
— |
|
|
— |
% |
|
|
39.5 |
|
|
|
— |
|
|
— |
% |
|
TOTAL COST OF SALES |
|
3,098.1 |
|
|
|
1,926.1 |
|
|
61 |
% |
|
|
9,365.4 |
|
|
|
5,823.0 |
|
|
61 |
% |
|
GROSS PROFIT |
|
767.8 |
|
|
|
480.0 |
|
|
60 |
% |
|
|
2,362.5 |
|
|
|
1,359.9 |
|
|
74 |
% |
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Selling, general and administrative |
|
438.2 |
|
|
|
268.7 |
|
|
63 |
% |
|
|
1,341.9 |
|
|
|
778.2 |
|
|
72 |
% |
|
Depreciation and amortization |
|
17.1 |
|
|
|
10.7 |
|
|
59 |
% |
|
|
53.6 |
|
|
|
30.6 |
|
|
75 |
% |
|
Other operating income, net |
|
(1.1 |
) |
|
|
(0.4 |
) |
|
144 |
% |
|
|
(3.0 |
) |
|
|
(4.6 |
) |
|
(36 |
) % |
|
INCOME FROM OPERATIONS |
|
313.6 |
|
|
|
201.0 |
|
|
56 |
% |
|
|
970.0 |
|
|
|
555.7 |
|
|
75 |
% |
|
OTHER EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Floor plan interest expense |
|
1.9 |
|
|
|
1.4 |
|
|
31 |
% |
|
|
6.0 |
|
|
|
6.5 |
|
|
(7 |
) % |
|
Other interest expense, net |
|
38.6 |
|
|
|
14.8 |
|
|
160 |
% |
|
|
113.8 |
|
|
|
43.2 |
|
|
163 |
% |
|
Gain on dealership divestitures, net |
|
— |
|
|
|
(8.0 |
) |
|
(100 |
) % |
(4.4 |
) |
(8.0 |
) |
|
(45 |
) % |
||||
|
Total other expenses, net |
|
40.5 |
|
|
|
8.2 |
|
|
NM |
|
|
|
115.4 |
|
|
|
41.6 |
|
|
177 |
% |
|
INCOME BEFORE INCOME TAXES |
|
273.1 |
|
|
|
192.8 |
|
|
42 |
% |
|
|
854.6 |
|
|
|
514.0 |
|
|
66 |
% |
|
Income tax expense |
|
68.1 |
|
|
|
45.8 |
|
|
49 |
% |
|
|
210.5 |
|
|
|
122.1 |
|
|
72 |
% |
|
NET INCOME |
$ |
205.0 |
|
|
$ |
147.0 |
|
|
39 |
% |
|
$ |
644.1 |
|
|
$ |
391.9 |
|
|
64 |
% |
|
EARNINGS PER COMMON SHARE: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Basic— |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net income |
$ |
9.26 |
|
|
$ |
7.62 |
|
|
22 |
% |
|
$ |
28.83 |
|
|
$ |
20.31 |
|
|
42 |
% |
|
Diluted— |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net income |
$ |
9.23 |
|
|
$ |
7.54 |
|
|
22 |
% |
|
$ |
28.72 |
|
|
$ |
20.10 |
|
|
43 |
% |
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Basic |
|
22.1 |
|
|
|
19.3 |
|
|
|
|
|
22.3 |
|
|
|
19.3 |
|
|
|
||
|
Restricted stock |
|
0.1 |
|
|
|
0.1 |
|
|
|
|
|
0.1 |
|
|
|
0.1 |
|
|
|
||
|
Performance share units |
|
— |
|
|
|
0.1 |
|
|
|
|
|
— |
|
|
|
0.1 |
|
|
|
||
|
Diluted |
|
22.2 |
|
|
|
19.5 |
|
|
|
|
|
22.4 |
|
|
|
19.5 |
|
|
|
||
|
______________________________ |
|
NM—Not Meaningful |
|
Additional Disclosures-Consolidated (In millions) (Unaudited)
|
||||||||||||||
|
|
|
|
|
|
Increase
|
|
% Change |
|||||||
|
SELECTED BALANCE SHEET DATA |
|
|
|
|
|
|
|
|||||||
|
Cash and cash equivalents |
$ |
141.3 |
|
$ |
178.9 |
|
$ |
(37.5 |
) |
|
(21 |
) % |
||
|
Inventory, net (a) |
|
822.2 |
|
|
|
718.4 |
|
|
|
103.8 |
|
|
14 |
% |
|
Total current assets |
|
1,812.6 |
|
|
|
1,929.4 |
|
|
|
(116.9 |
) |
|
(6 |
) % |
|
Floor plan notes payable (b) |
|
28.2 |
|
|
|
564.5 |
|
|
|
(536.3 |
) |
|
(95 |
) % |
|
Total current liabilities |
|
1,158.7 |
|
|
|
1,597.9 |
|
|
|
(439.2 |
) |
|
(27 |
) % |
|
CAPITALIZATION: |
|
|
|
|
|
|
|
|||||||
|
Long-term debt (including current portion) (c) |
$ |
3,325.5 |
|
|
$ |
3,582.6 |
|
|
$ |
(257.1 |
) |
|
(7 |
) % |
|
Shareholders' equity |
|
2,642.9 |
|
|
|
2,115.5 |
|
|
|
527.4 |
|
|
25 |
% |
|
Total |
$ |
5,968.4 |
|
|
$ |
5,698.1 |
|
|
$ |
270.3 |
|
|
5 |
% |
|
_____________________________ |
|
(a) Excludes |
|
(b) Excluding |
|
(c) Excluding $38.9 million of Debt classified as Liabilities associated with assets held for sale as of |
|
|
|
|
|
|
|
|
Days Supply |
|
|
|
|
|
|
New vehicle inventory |
19 |
|
8 |
|
12 |
|
Used vehicle inventory |
31 |
|
34 |
|
28 |
|
_____________________________ |
|
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
|
||||
|
|
2022 |
|
2021 |
||
|
Luxury |
|
|
|
||
|
Lexus |
9 |
% |
|
13 |
% |
|
Mercedes-Benz |
8 |
% |
|
11 |
% |
|
BMW |
4 |
% |
|
5 |
% |
|
Porsche |
2 |
% |
|
2 |
% |
|
Acura |
2 |
% |
|
4 |
% |
|
Land Rover |
1 |
% |
|
2 |
% |
|
Volvo |
1 |
% |
|
2 |
% |
|
Other luxury |
3 |
% |
|
3 |
% |
|
Total luxury |
32 |
% |
|
45 |
% |
|
Imports |
|
|
|
||
|
|
16 |
% |
|
12 |
% |
|
Honda |
9 |
% |
|
16 |
% |
|
Hyundai |
5 |
% |
|
3 |
% |
|
Nissan |
3 |
% |
|
4 |
% |
|
Kia |
2 |
% |
|
3 |
% |
|
Subaru |
2 |
% |
|
1 |
% |
|
|
2 |
% |
|
1 |
% |
|
Other imports |
— |
% |
|
1 |
% |
|
Total imports |
39 |
% |
|
41 |
% |
|
Domestic |
|
|
|
||
|
Chrysler, Dodge, |
16 |
% |
|
6 |
% |
|
Ford |
9 |
% |
|
4 |
% |
|
Chevrolet, Buick, GMC |
5 |
% |
|
4 |
% |
|
Total domestic |
30 |
% |
|
14 |
% |
|
Total New Vehicle Revenue |
100 |
% |
|
100 |
% |
|
|
For the Three Months
|
||||
|
|
2022 |
|
2021 |
||
|
Revenue mix |
|
|
|
||
|
New vehicle |
46.5 |
% |
|
46.9 |
% |
|
Used vehicle retail |
32.3 |
% |
|
34.2 |
% |
|
Used vehicle wholesale |
2.1 |
% |
|
2.3 |
% |
|
Parts and service |
13.9 |
% |
|
12.3 |
% |
|
Finance and insurance |
5.2 |
% |
|
4.2 |
% |
|
Total revenue |
100.0 |
% |
|
100.0 |
% |
|
Gross profit mix |
|
|
|
||
|
New vehicle |
26.2 |
% |
|
26.3 |
% |
|
Used vehicle retail |
10.9 |
% |
|
14.3 |
% |
|
Used vehicle wholesale |
(0.2 |
) % |
|
0.7 |
% |
|
Parts and service |
38.8 |
% |
|
37.8 |
% |
|
Finance and insurance |
24.3 |
% |
|
20.9 |
% |
|
Total gross profit |
100.0 |
% |
|
100.0 |
% |
|
STATEMENTS OF INCOME-CONSOLIDATED (In millions) (Unaudited)
|
|||||||||||||||||||||
|
|
For the Three Months
|
|
%
|
|
For the Nine Months
|
|
%
|
||||||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
2022 |
|
|
|
2021 |
|
|
||||
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
New vehicle |
$ |
1,799.2 |
|
|
$ |
1,129.5 |
|
|
59 |
% |
|
$ |
5,519.3 |
|
|
$ |
3,649.6 |
|
|
51 |
% |
|
Used vehicle: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Retail |
|
1,249.8 |
|
|
|
823.8 |
|
|
52 |
% |
|
|
3,739.5 |
|
|
|
2,190.5 |
|
|
71 |
% |
|
Wholesale |
|
80.9 |
|
|
|
55.3 |
|
|
46 |
% |
|
|
304.6 |
|
|
|
195.5 |
|
|
56 |
% |
|
Total used vehicle |
|
1,330.7 |
|
|
|
879.1 |
|
|
51 |
% |
|
|
4,044.1 |
|
|
|
2,386.1 |
|
|
69 |
% |
|
Parts and service |
|
536.1 |
|
|
|
297.1 |
|
|
80 |
% |
|
|
1,558.2 |
|
|
|
851.5 |
|
|
83 |
% |
|
Finance and insurance |
|
200.0 |
|
|
|
100.4 |
|
|
99 |
% |
|
|
606.4 |
|
|
|
295.7 |
|
|
105 |
% |
|
Total Revenue |
$ |
3,865.9 |
|
|
$ |
2,406.1 |
|
|
61 |
% |
|
$ |
11,727.9 |
|
|
$ |
7,182.9 |
|
|
63 |
% |
|
Gross profit |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
New vehicle |
$ |
201.2 |
|
|
$ |
126.0 |
|
|
60 |
% |
|
$ |
645.6 |
|
|
$ |
325.6 |
|
|
98 |
% |
|
Used vehicle: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Retail |
|
84.0 |
|
|
|
68.6 |
|
|
22 |
% |
|
|
280.5 |
|
|
|
189.5 |
|
|
48 |
% |
|
Wholesale |
|
(1.9 |
) |
|
|
3.6 |
|
|
(152 |
) % |
|
|
5.0 |
|
|
|
21.9 |
|
|
(77 |
) % |
|
Total used vehicle |
|
82.1 |
|
|
|
72.2 |
|
|
14 |
% |
|
|
285.5 |
|
|
|
211.4 |
|
|
35 |
% |
|
Parts and service |
|
297.6 |
|
|
|
181.4 |
|
|
64 |
% |
|
|
864.5 |
|
|
|
527.1 |
|
|
64 |
% |
|
Finance and insurance |
|
186.9 |
|
|
|
100.4 |
|
|
86 |
% |
|
|
566.8 |
|
|
|
295.7 |
|
|
92 |
% |
|
Total gross profit |
$ |
767.8 |
|
|
$ |
480.0 |
|
|
60 |
% |
|
$ |
2,362.5 |
|
|
$ |
1,359.9 |
|
|
74 |
% |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Selling, general and administrative |
$ |
438.2 |
|
|
$ |
268.7 |
|
|
63 |
% |
|
$ |
1,341.9 |
|
|
$ |
778.2 |
|
|
72 |
% |
|
Operating metrics |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
SG&A as a % of gross profit |
|
57.1 |
% |
|
|
56.0 |
% |
|
110 bps |
|
|
56.8 |
% |
|
|
57.2 |
% |
|
(40) bps |
||
|
Adjusted SG&A as a % of gross profit |
|
57.1 |
% |
|
|
55.3 |
% |
|
180 bps |
|
|
56.8 |
% |
|
|
57.0 |
% |
|
(20) bps |
||
|
Income from operations as a % of revenue |
|
8.1 |
% |
|
|
8.4 |
% |
|
(20) bps |
|
|
8.3 |
% |
|
|
7.7 |
% |
|
50 bps |
||
|
Income from operations as a % of gross profit |
|
40.8 |
% |
|
|
41.9 |
% |
|
(100) bps |
|
|
41.1 |
% |
|
|
40.9 |
% |
|
20 bps |
||
|
Adjusted income from operations as a % of revenue |
|
8.1 |
% |
|
|
8.5 |
% |
|
(40) bps |
|
|
8.3 |
% |
|
|
7.7 |
% |
|
50 bps |
||
|
Adjusted income from operations as a % of gross profit |
|
40.8 |
% |
|
|
42.6 |
% |
|
(180) bps |
|
|
41.0 |
% |
|
|
40.9 |
% |
|
10 bps |
||
|
Finance and insurance average gross profit per unit |
$ |
2,480 |
|
|
$ |
1,911 |
|
|
30 |
% |
|
$ |
2,450 |
|
|
$ |
1,827 |
|
|
34 |
% |
|
Total parts and service gross margin |
|
55.5 |
% |
|
|
61.1 |
% |
|
(550) bps |
|
|
55.5 |
% |
|
|
61.9 |
% |
|
(640) bps |
||
|
Total gross profit margin |
|
19.9 |
% |
|
|
19.9 |
% |
|
(10) bps |
|
|
20.1 |
% |
|
|
18.9 |
% |
|
120 bps |
||
|
STATEMENTS OF INCOME-DEALERSHIPS (In millions) (unaudited)
|
|||||||||||||||||||||
|
|
For the Three Months
|
|
%
|
|
For the Nine Months
|
|
%
|
||||||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
2022 |
|
|
|
2021 |
|
|
||||
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
New vehicle |
$ |
1,799.2 |
|
|
$ |
1,129.5 |
|
|
59 |
% |
|
$ |
5,519.3 |
|
|
$ |
3,649.6 |
|
|
51 |
% |
|
Used vehicle: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Retail |
|
1,249.8 |
|
|
|
823.8 |
|
|
52 |
% |
|
|
3,739.5 |
|
|
|
2,190.5 |
|
|
71 |
% |
|
Wholesale |
|
80.9 |
|
|
|
55.3 |
|
|
46 |
% |
|
|
304.6 |
|
|
|
195.5 |
|
|
56 |
% |
|
Total used vehicle |
|
1,330.7 |
|
|
|
879.1 |
|
|
51 |
% |
|
|
4,044.1 |
|
|
|
2,386.1 |
|
|
69 |
% |
|
Parts and service |
|
544.8 |
|
|
|
297.1 |
|
|
83 |
% |
|
|
1,582.8 |
|
|
|
851.5 |
|
|
86 |
% |
|
Finance and insurance, net |
|
163.9 |
|
|
|
100.4 |
|
|
63 |
% |
|
|
516.5 |
|
|
|
295.7 |
|
|
75 |
% |
|
Total Revenue |
$ |
3,838.5 |
|
|
$ |
2,406.1 |
|
|
60 |
% |
|
$ |
11,662.7 |
|
|
$ |
7,182.9 |
|
|
62 |
% |
|
Gross profit |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
New vehicle |
$ |
201.2 |
|
|
$ |
126.0 |
|
|
60 |
% |
|
$ |
645.6 |
|
|
$ |
325.6 |
|
|
98 |
% |
|
Used vehicle: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Retail |
|
84.0 |
|
|
|
68.6 |
|
|
22 |
% |
|
|
280.5 |
|
|
|
189.5 |
|
|
48 |
% |
|
Wholesale |
|
(1.9 |
) |
|
|
3.6 |
|
|
(152 |
) % |
|
|
5.0 |
|
|
|
21.9 |
|
|
(77 |
) % |
|
Total used vehicle |
|
82.1 |
|
|
|
72.2 |
|
|
14 |
% |
|
|
285.5 |
|
|
|
211.4 |
|
|
35 |
% |
|
Parts and service |
|
301.8 |
|
|
|
181.4 |
|
|
66 |
% |
|
|
876.4 |
|
|
|
527.1 |
|
|
66 |
% |
|
Finance and insurance, net |
|
163.9 |
|
|
|
100.4 |
|
|
63 |
% |
|
|
516.5 |
|
|
|
295.7 |
|
|
75 |
% |
|
Total gross profit |
$ |
749.0 |
|
|
$ |
480.0 |
|
|
56 |
% |
|
$ |
2,324.1 |
|
|
$ |
1,359.9 |
|
|
71 |
% |
|
Unit sales |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
New vehicle: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Luxury |
|
8,251 |
|
|
|
7,972 |
|
|
3 |
% |
|
|
25,407 |
|
|
|
26,568 |
|
|
(4 |
) % |
|
Import |
|
18,584 |
|
|
|
13,491 |
|
|
38 |
% |
|
|
58,826 |
|
|
|
45,125 |
|
|
30 |
% |
|
Domestic |
|
9,662 |
|
|
|
3,300 |
|
|
193 |
% |
|
|
30,135 |
|
|
|
12,054 |
|
|
150 |
% |
|
Total new vehicle |
|
36,497 |
|
|
|
24,763 |
|
|
47 |
% |
|
|
114,368 |
|
|
|
83,747 |
|
|
37 |
% |
|
Used vehicle retail |
|
38,874 |
|
|
|
27,761 |
|
|
40 |
% |
|
|
117,028 |
|
|
|
78,136 |
|
|
50 |
% |
|
Used to new ratio |
|
106.5 |
% |
|
|
112.1 |
% |
|
|
|
|
102.3 |
% |
|
|
93.3 |
% |
|
|
||
|
Average selling price |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
New vehicle |
$ |
49,296 |
|
|
$ |
45,612 |
|
|
8 |
% |
|
$ |
48,259 |
|
|
$ |
43,579 |
|
|
11 |
% |
|
Used vehicle retail |
$ |
32,150 |
|
|
$ |
29,674 |
|
|
8 |
% |
|
$ |
31,954 |
|
|
$ |
28,035 |
|
|
14 |
% |
|
Average gross profit per unit |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
New vehicle: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Luxury |
$ |
8,409 |
|
|
$ |
7,549 |
|
|
11 |
% |
|
$ |
8,529 |
|
|
$ |
6,277 |
|
|
36 |
% |
|
Import |
|
4,197 |
|
|
|
3,719 |
|
|
13 |
% |
|
|
4,441 |
|
|
|
2,489 |
|
|
78 |
% |
|
Domestic |
|
5,569 |
|
|
|
4,749 |
|
|
17 |
% |
|
|
5,564 |
|
|
|
3,865 |
|
|
44 |
% |
|
Total new vehicle |
|
5,512 |
|
|
|
5,089 |
|
|
8 |
% |
|
|
5,645 |
|
|
|
3,888 |
|
|
45 |
% |
|
Used vehicle retail |
|
2,160 |
|
|
|
2,470 |
|
|
(13 |
) % |
|
|
2,397 |
|
|
|
2,426 |
|
|
(1 |
) % |
|
Finance and insurance |
|
2,175 |
|
|
|
1,911 |
|
|
14 |
% |
|
|
2,232 |
|
|
|
1,827 |
|
|
22 |
% |
|
Front end yield (1) |
|
5,958 |
|
|
|
5,616 |
|
|
6 |
% |
|
|
6,235 |
|
|
|
5,009 |
|
|
24 |
% |
|
Gross margin |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
New vehicle |
|
11.2 |
% |
|
|
11.2 |
% |
|
— bps |
|
|
11.7 |
% |
|
|
8.9 |
% |
|
280 bps |
||
|
Used vehicle retail |
|
6.7 |
% |
|
|
8.3 |
% |
|
(160) bps |
|
|
7.5 |
% |
|
|
8.7 |
% |
|
(120) bps |
||
|
Parts and service |
|
55.4 |
% |
|
|
61.1 |
% |
|
(570) bps |
|
|
55.4 |
% |
|
|
61.9 |
% |
|
(650) bps |
||
|
Total gross profit margin |
|
19.5 |
% |
|
|
19.9 |
% |
|
(40) bps |
|
|
19.9 |
% |
|
|
18.9 |
% |
|
100 bps |
||
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Selling, general and administrative |
$ |
444.0 |
|
|
$ |
268.7 |
|
|
65 |
% |
|
$ |
1,361.1 |
|
|
$ |
778.2 |
|
|
75 |
% |
|
Adjusted Selling, general and administrative |
$ |
444.0 |
|
|
$ |
265.2 |
|
|
67 |
% |
|
$ |
1,361.1 |
|
|
$ |
774.7 |
|
|
76 |
% |
|
SG&A as a % of gross profit |
|
59.3 |
% |
|
|
56.0 |
% |
|
330 bps |
|
|
58.6 |
% |
|
|
57.2 |
% |
|
130 bps |
||
|
Adjusted SG&A as a % of gross profit |
|
59.3 |
% |
|
|
55.3 |
% |
|
400 bps |
|
|
58.6 |
% |
|
|
57.0 |
% |
|
160 bps |
||
|
_____________________________ |
|
|
(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. |
|
SAME STORE OPERATING HIGHLIGHTS-DEALERSHIPS (In millions) (Unaudited)
|
|||||||||||||||||||||
|
|
For the Three Months
|
|
%
|
|
For the Nine Months
|
|
%
|
||||||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
2022 |
|
|
|
2021 |
|
|
||||
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
New vehicle |
$ |
1,031.4 |
|
|
$ |
1,113.5 |
|
|
(7 |
) % |
|
$ |
3,117.9 |
|
|
$ |
3,601.8 |
|
|
(13 |
) % |
|
Used Vehicle: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Retail |
|
811.4 |
|
|
|
813.5 |
|
|
— |
% |
|
|
2,438.6 |
|
|
|
2,159.6 |
|
|
13 |
% |
|
Wholesale |
|
34.2 |
|
|
|
55.0 |
|
|
(38 |
) % |
|
|
125.2 |
|
|
|
194.5 |
|
|
(36 |
) % |
|
Total used vehicle |
|
845.6 |
|
|
|
868.5 |
|
|
(3 |
) % |
|
|
2,563.8 |
|
|
|
2,354.0 |
|
|
9 |
% |
|
Parts and service |
|
329.3 |
|
|
|
293.5 |
|
|
12 |
% |
|
|
942.2 |
|
|
|
841.0 |
|
|
12 |
% |
|
Finance and insurance |
|
102.2 |
|
|
|
99.4 |
|
|
3 |
% |
|
|
326.5 |
|
|
|
292.8 |
|
|
12 |
% |
|
Total revenue |
$ |
2,308.5 |
|
|
$ |
2,374.9 |
|
|
(3 |
) % |
|
$ |
6,950.5 |
|
|
$ |
7,089.6 |
|
|
(2 |
) % |
|
Gross profit |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
New vehicle |
$ |
119.0 |
|
|
$ |
124.0 |
|
|
(4 |
) % |
|
$ |
368.6 |
|
|
$ |
320.4 |
|
|
15 |
% |
|
Used Vehicle: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Retail |
|
47.1 |
|
|
|
67.7 |
|
|
(30 |
) % |
|
|
159.3 |
|
|
|
187.1 |
|
|
(15 |
) % |
|
Wholesale |
|
(1.9 |
) |
|
|
3.6 |
|
|
(153 |
) % |
|
|
— |
|
|
|
21.7 |
|
|
(100 |
) % |
|
Total used vehicle |
|
45.2 |
|
|
|
71.3 |
|
|
(37 |
) % |
|
|
159.3 |
|
|
|
208.8 |
|
|
(24 |
) % |
|
Parts and service |
|
196.3 |
|
|
|
179.1 |
|
|
10 |
% |
|
|
562.8 |
|
|
|
520.1 |
|
|
8 |
% |
|
Finance and insurance |
|
102.2 |
|
|
|
99.4 |
|
|
3 |
% |
|
|
326.5 |
|
|
|
292.8 |
|
|
12 |
% |
|
Total gross profit |
$ |
462.7 |
|
|
$ |
473.8 |
|
|
(2 |
) % |
|
$ |
1,417.2 |
|
|
$ |
1,342.1 |
|
|
6 |
% |
|
Unit sales |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
New vehicle: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Luxury |
|
7,070 |
|
|
|
7,694 |
|
|
(8 |
) % |
|
|
21,640 |
|
|
|
25,733 |
|
|
(16 |
) % |
|
Import |
|
10,521 |
|
|
|
13,491 |
|
|
(22 |
) % |
|
|
32,900 |
|
|
|
45,125 |
|
|
(27 |
) % |
|
Domestic |
|
2,989 |
|
|
|
3,300 |
|
|
(9 |
) % |
|
|
9,285 |
|
|
|
12,054 |
|
|
(23 |
) % |
|
Total new vehicle |
|
20,580 |
|
|
|
24,485 |
|
|
(16 |
) % |
|
|
63,825 |
|
|
|
82,912 |
|
|
(23 |
) % |
|
Used vehicle retail |
|
24,774 |
|
|
|
27,416 |
|
|
(10 |
) % |
|
|
75,262 |
|
|
|
77,096 |
|
|
(2 |
) % |
|
Used to new ratio |
|
120.4 |
% |
|
|
112.0 |
% |
|
|
|
|
117.9 |
% |
|
|
93.0 |
% |
|
|
||
|
Average selling price |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
New vehicle |
$ |
50,117 |
|
|
$ |
45,475 |
|
|
10 |
% |
|
$ |
48,851 |
|
|
$ |
43,441 |
|
|
12 |
% |
|
Used vehicle retail |
$ |
32,754 |
|
|
$ |
29,673 |
|
|
10 |
% |
|
$ |
32,402 |
|
|
$ |
28,011 |
|
|
16 |
% |
|
Average gross profit per unit |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
New vehicle: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Luxury |
$ |
8,531 |
|
|
$ |
7,555 |
|
|
13 |
% |
|
$ |
8,397 |
|
|
$ |
6,272 |
|
|
34 |
% |
|
Import |
|
4,267 |
|
|
|
3,721 |
|
|
15 |
% |
|
|
4,342 |
|
|
|
2,490 |
|
|
74 |
% |
|
Domestic |
|
4,609 |
|
|
|
4,752 |
|
|
(3 |
) % |
|
|
4,743 |
|
|
|
3,867 |
|
|
23 |
% |
|
Total new vehicle |
|
5,782 |
|
|
|
5,065 |
|
|
14 |
% |
|
|
5,775 |
|
|
|
3,864 |
|
|
49 |
% |
|
Used vehicle retail |
|
1,901 |
|
|
|
2,471 |
|
|
(23 |
) % |
|
|
2,116 |
|
|
|
2,427 |
|
|
(13 |
) % |
|
Finance and insurance |
|
2,254 |
|
|
|
1,915 |
|
|
18 |
% |
|
|
2,348 |
|
|
|
1,830 |
|
|
28 |
% |
|
Front end yield (1) |
|
5,916 |
|
|
|
5,610 |
|
|
5 |
% |
|
|
6,143 |
|
|
|
5,001 |
|
|
23 |
% |
|
Gross margin |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total new vehicle |
|
11.5 |
% |
|
|
11.1 |
% |
|
40 bps |
|
|
11.8 |
% |
|
|
8.9 |
% |
|
290 bps |
||
|
Used vehicle retail |
|
5.8 |
% |
|
|
8.3 |
% |
|
(250) bps |
|
|
6.5 |
% |
|
|
8.7 |
% |
|
(220) bps |
||
|
Parts and service |
|
59.6 |
% |
|
|
61.0 |
% |
|
(140) bps |
|
|
59.7 |
% |
|
|
61.8 |
% |
|
(210) bps |
||
|
Total gross profit margin |
|
20.0 |
% |
|
|
19.9 |
% |
|
10 bps |
|
|
20.4 |
% |
|
|
18.9 |
% |
|
150 bps |
||
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Selling, general and administrative |
$ |
258.3 |
|
|
$ |
265.5 |
|
|
(3 |
) % |
|
$ |
801.0 |
|
|
$ |
768.9 |
|
|
4 |
% |
|
Adjusted Selling, general and administrative |
$ |
258.3 |
|
|
$ |
262.0 |
|
|
(1 |
) % |
|
$ |
801.0 |
|
|
$ |
765.4 |
|
|
5 |
% |
|
SG&A as a % of gross profit |
|
55.8 |
% |
|
|
56.0 |
% |
|
(20) bps |
|
|
56.5 |
% |
|
|
57.3 |
% |
|
(80) bps |
||
|
Adjusted SG&A as a % of gross profit |
|
55.8 |
% |
|
|
55.3 |
% |
|
50 bps |
|
|
56.5 |
% |
|
|
57.0 |
% |
|
(50) bps |
||
|
_____________________________ |
|
|
(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. |
|
SEGMENT REPORTING (Unaudited)
|
|||||||||||
|
|
Three Months Ended |
||||||||||
|
|
Dealerships |
|
TCA After
|
|
|
||||||
|
|
(In millions) |
||||||||||
|
Revenue |
|
|
|
|
|
||||||
|
New |
$ |
1,799.2 |
|
$ |
— |
|
|
$ |
1,799.2 |
||
|
Used |
|
1,330.7 |
|
|
|
— |
|
|
|
1,330.7 |
|
|
Parts and service |
|
544.8 |
|
|
|
(8.7 |
) |
|
|
536.1 |
|
|
Finance and insurance |
|
163.9 |
|
|
|
36.1 |
|
|
|
200.0 |
|
|
Total revenue |
$ |
3,838.5 |
|
|
$ |
27.4 |
|
|
$ |
3,865.9 |
|
|
Cost of sales |
|
|
|
|
|
||||||
|
New |
$ |
1,598.0 |
|
|
$ |
— |
|
|
$ |
1,598.0 |
|
|
Used |
|
1,248.6 |
|
|
|
— |
|
|
|
1,248.6 |
|
|
Parts and service |
|
243.0 |
|
|
|
(4.5 |
) |
|
|
238.5 |
|
|
Finance and insurance |
|
— |
|
|
|
13.0 |
|
|
|
13.0 |
|
|
Total cost of sales |
$ |
3,089.5 |
|
|
$ |
8.6 |
|
|
$ |
3,098.1 |
|
|
Gross profit |
|
|
|
|
|
||||||
|
New |
$ |
201.2 |
|
|
$ |
— |
|
|
$ |
201.2 |
|
|
Used |
|
82.1 |
|
|
|
— |
|
|
|
82.1 |
|
|
Parts and service |
|
301.8 |
|
|
|
(4.2 |
) |
|
|
297.6 |
|
|
Finance and insurance |
|
163.9 |
|
|
|
23.0 |
|
|
|
186.9 |
|
|
Total gross profit |
$ |
749.0 |
|
|
$ |
18.8 |
|
|
$ |
767.8 |
|
|
Selling, general and administrative |
$ |
444.0 |
|
|
$ |
(5.8 |
) |
|
$ |
438.2 |
|
|
Income from operations |
$ |
291.4 |
|
|
$ |
22.3 |
|
|
$ |
313.6 |
|
|
|
Nine Months Ended |
||||||||||
|
|
Dealerships |
|
TCA After
|
|
|
||||||
|
|
(In millions) |
||||||||||
|
Revenue |
|
|
|
|
|
||||||
|
New |
$ |
5,519.3 |
|
$ |
— |
|
|
$ |
5,519.3 |
||
|
Used |
|
4,044.1 |
|
|
|
— |
|
|
|
4,044.1 |
|
|
Parts and service |
|
1,582.8 |
|
|
|
(24.7 |
) |
|
|
1,558.2 |
|
|
Finance and insurance |
|
516.5 |
|
|
|
89.9 |
|
|
|
606.4 |
|
|
Total revenue |
$ |
11,662.7 |
|
|
$ |
65.2 |
|
|
$ |
11,727.9 |
|
|
Cost of sales |
|
|
|
|
|
||||||
|
New |
$ |
4,873.7 |
|
|
$ |
— |
|
|
$ |
4,873.7 |
|
|
Used |
|
3,758.5 |
|
|
|
— |
|
|
|
3,758.5 |
|
|
Parts and service |
|
706.5 |
|
|
|
(12.8 |
) |
|
|
693.6 |
|
|
Finance and insurance |
|
— |
|
|
|
39.5 |
|
|
|
39.5 |
|
|
Total cost of sales |
$ |
9,338.6 |
|
|
$ |
26.7 |
|
|
$ |
9,365.4 |
|
|
Gross profit |
|
|
|
|
|
||||||
|
New |
$ |
645.6 |
|
|
$ |
— |
|
|
$ |
645.6 |
|
|
Used |
|
285.5 |
|
|
|
— |
|
|
|
285.5 |
|
|
Parts and service |
|
876.4 |
|
|
|
(11.8 |
) |
|
|
864.5 |
|
|
Finance and insurance |
|
516.5 |
|
|
|
50.3 |
|
|
|
566.8 |
|
|
Total gross profit |
$ |
2,324.1 |
|
|
$ |
38.5 |
|
|
$ |
2,362.5 |
|
|
Selling, general and administrative |
$ |
1,361.1 |
|
|
$ |
(19.2 |
) |
|
$ |
1,341.9 |
|
|
Income from operations |
$ |
918.1 |
|
|
$ |
51.9 |
|
|
$ |
970.0 |
|
|
Supplemental Disclosures (Unaudited) |
|
The following tables provide reconciliations for our non-GAAP metrics: |
|||||||||||||||
|
|
For the Three Months Ended |
|
For the Twelve Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
(Dollars in millions) |
||||||||||||||
|
Adjusted leverage ratio: |
|
|
|
|
|
|
|
||||||||
|
Long-term debt (including current portion and held for sale) |
|
|
|
|
$ |
3,364.4 |
|
|
$ |
3,387.9 |
|
||||
|
Cash and floor plan offset |
|
|
|
|
|
(635.6 |
) |
|
|
(404.4 |
) |
||||
|
TCA cash |
|
|
|
|
|
98.5 |
|
|
|
160.3 |
|
||||
|
Availability under our used vehicle floor plan facility |
|
|
|
|
|
(198.5 |
) |
|
|
(327.8 |
) |
||||
|
Adjusted long-term net debt |
|
|
|
|
$ |
2,628.7 |
|
|
$ |
2,816.0 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Calculation of earnings before interest, taxes, depreciation and amortization ("EBITDA"): |
|
|
|
|
|
|
|
||||||||
|
Net Income |
$ |
205.0 |
|
$ |
147.0 |
|
|
$ |
784.6 |
|
|
$ |
726.5 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Depreciation and amortization |
|
17.1 |
|
|
|
10.7 |
|
|
|
64.9 |
|
|
|
58.5 |
|
|
Income tax expense |
|
68.1 |
|
|
|
45.8 |
|
|
|
253.7 |
|
|
|
231.3 |
|
|
Swap and other interest expense |
|
38.6 |
|
|
|
14.9 |
|
|
|
165.1 |
|
|
|
141.4 |
|
|
Earnings before interest, taxes, depreciation and amortization ("EBITDA") |
$ |
328.8 |
|
|
$ |
218.3 |
|
|
$ |
1,268.2 |
|
|
$ |
1,157.7 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Non-core items - expense (income): |
|
|
|
|
|
|
|
||||||||
|
Gain on dealership divestitures, net |
$ |
— |
|
|
$ |
(8.0 |
) |
|
$ |
(4.4 |
) |
|
$ |
(12.4 |
) |
|
Gain on sale of real estate |
|
— |
|
|
|
— |
|
|
|
(0.9 |
) |
|
|
(0.9 |
) |
|
Professional fees associated with acquisitions |
|
— |
|
|
|
3.5 |
|
|
|
1.4 |
|
|
|
4.9 |
|
|
Total non-core items |
|
— |
|
|
|
(4.6 |
) |
|
|
(3.9 |
) |
|
|
(8.5 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted EBITDA |
$ |
328.8 |
|
|
$ |
213.8 |
|
|
$ |
1,264.3 |
|
|
$ |
1,149.3 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Pro forma impact of acquisition and divestitures on EBITDA |
|
|
|
|
$ |
96.3 |
|
|
$ |
214.2 |
|
||||
|
Pro forma Adjusted EBITDA |
|
|
|
|
$ |
1,360.6 |
|
|
$ |
1,363.5 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Pro forma Adjusted net leverage ratio |
|
|
|
|
|
1.9 |
|
|
|
2.1 |
|
||||
|
|
Three Months Ended |
||||||||||||||||||
|
|
GAAP |
|
(Gain) loss on
|
|
Real estate
|
|
Income tax
|
|
Non-GAAP
|
||||||||||
|
|
(In millions, except per share data) |
||||||||||||||||||
|
Selling, general and administrative |
$ |
438.2 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
438.2 |
|
|
Income from operations |
$ |
313.6 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
313.6 |
|
|
Net income |
$ |
205.0 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
205.0 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Weighted average common share outstanding - diluted |
|
22.2 |
|
|
|
|
|
|
|
|
|
22.2 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Diluted EPS |
$ |
9.23 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
9.23 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
SG&A as a % of gross profit |
|
57.1 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
57.1 |
% |
|
Income from operations as a % of revenue |
|
8.1 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
8.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Dealerships: |
|
|
|
|
|
|
|
|
|
||||||||||
|
Selling, general and administrative |
$ |
444.0 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
444.0 |
|
|
SG&A as a % of gross profit |
|
59.3 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
59.3 |
% |
|
|
Three Months Ended |
||||||||||||||||||
|
|
GAAP |
|
Professional fees
|
|
Gain on
|
|
Income tax
|
|
Non-GAAP
|
||||||||||
|
|
(In millions, except per share data) |
||||||||||||||||||
|
Selling, general and administrative |
$ |
268.7 |
|
|
$ |
(3.5 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
265.2 |
|
|
Income from operations |
$ |
201.0 |
|
|
$ |
3.5 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
204.5 |
|
|
Net income |
|
147.0 |
|
|
$ |
3.5 |
|
|
$ |
(8.0 |
) |
|
$ |
1.1 |
|
|
$ |
143.5 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Weighted average common share outstanding - diluted |
|
19.5 |
|
|
|
|
|
|
|
|
|
19.5 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Diluted EPS |
$ |
7.54 |
|
|
$ |
0.18 |
|
|
$ |
(0.41 |
) |
|
$ |
0.05 |
|
|
$ |
7.36 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
SG&A as a % of gross profit |
|
56.0 |
% |
|
|
(0.7 |
) % |
|
|
— |
% |
|
|
— |
% |
|
|
55.3 |
% |
|
Income from operations as a % of revenue |
|
8.4 |
% |
|
|
0.1 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
8.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Dealerships: |
|
|
|
|
|
|
|
|
|
||||||||||
|
Selling, general and administrative |
$ |
268.7 |
|
|
$ |
(3.5 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
265.2 |
|
|
SG&A as a % of gross profit |
|
56.0 |
% |
|
|
(0.7 |
) % |
|
|
— |
% |
|
|
— |
% |
|
|
55.3 |
% |
|
|
Nine Months Ended |
||||||||||||||||||
|
|
GAAP |
|
Gain on
|
|
Real estate
|
|
Income tax
|
|
Non-GAAP
|
||||||||||
|
|
(In millions, except per share data) |
||||||||||||||||||
|
Selling, general and administrative |
$ |
1,341.9 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,341.9 |
|
|
Income from operations |
$ |
970.0 |
|
|
$ |
— |
|
|
$ |
(0.9 |
) |
|
$ |
— |
|
|
$ |
969.0 |
|
|
Net income |
$ |
644.1 |
|
|
$ |
(4.4 |
) |
|
$ |
(0.9 |
) |
|
$ |
1.3 |
|
|
$ |
640.1 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Weighted average common share outstanding - diluted |
|
22.4 |
|
|
|
|
|
|
|
|
|
22.4 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Diluted EPS |
$ |
28.72 |
|
|
$ |
(0.20 |
) |
|
$ |
(0.04 |
) |
|
$ |
0.06 |
|
|
$ |
28.54 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
SG&A as a % of gross profit |
|
56.8 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
56.8 |
% |
|
Income from operations as a % of revenue |
|
8.3 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
8.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Dealerships: |
|
|
|
|
|
|
|
|
|
||||||||||
|
Selling, general and administrative |
$ |
1,361.1 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,361.1 |
|
|
SG&A as a % of gross profit |
|
58.6 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
58.6 |
% |
|
|
Nine Months Ended |
||||||||||||||||||||||||||||||
|
|
GAAP |
|
Professional
|
|
Legal
|
|
Real estate
|
|
Real estate
|
|
Gain on
|
|
Income tax
|
|
Non-GAAP
|
||||||||||||||||
|
|
(In millions, except per share data) |
||||||||||||||||||||||||||||||
|
Selling, general and administrative |
$ |
778.2 |
|
|
$ |
(3.5 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
774.7 |
|
|
Income from operations |
$ |
555.7 |
|
|
$ |
3.5 |
|
|
$ |
(3.5 |
) |
|
$ |
(1.8 |
) |
|
$ |
2.1 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
555.9 |
|
|
Net income |
$ |
391.9 |
|
|
$ |
3.5 |
|
|
$ |
(3.5 |
) |
|
$ |
(1.8 |
) |
|
$ |
2.1 |
|
|
$ |
(8.0 |
) |
|
$ |
1.9 |
|
|
$ |
386.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Weighted average common share outstanding - diluted |
|
19.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19.5 |
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Diluted EPS |
$ |
20.10 |
|
|
$ |
0.18 |
|
|
$ |
(0.18 |
) |
|
$ |
(0.10 |
) |
|
$ |
0.11 |
|
|
$ |
(0.42 |
) |
|
$ |
0.10 |
|
|
|
19.79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
SG&A as a % of gross profit |
|
57.2 |
% |
|
|
(0.2 |
) % |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
57.0 |
% |
|
Income from operations as a % of revenue |
|
7.7 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
7.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Dealerships: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Selling, general and administrative |
$ |
778.2 |
|
|
$ |
(3.5 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
774.7 |
|
|
SG&A as a % of gross profit |
|
57.2 |
% |
|
|
(0.2 |
) % |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
57.0 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20221027005123/en/
Investors & Reporters May Contact:
Manager, Investor Relations
(770) 418-8211
[email protected]
Source: