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Asbury Automotive Group Inc$66.15($1.35)(2.00%)

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 Asbury Automotive Group Announces Record 2015 Fourth Quarter And Full-Year Financial Results
   Thursday, February 04, 2016 7:00:00 AM ET

Asbury Automotive Group, Inc. (ABG ), one of the largest automotive retail and service companies in the U.S., today reported adjusted income from continuing operations for the fourth quarter 2015 of $32.8 million, or $1.31 per diluted share, versus adjusted income from continuing operations in the fourth quarter 2014 of $31.4 million, or $1.07 per diluted share, a 22% increase per diluted share. The fourth quarter of 2015 benefited from a favorable tax rate of 37.2% versus 39.0% during the fourth quarter of 2014. Income from continuing operations for the fourth quarter 2015 included a $13.5 million pre-tax gain on divestitures, or $0.34 per diluted share. Income from continuing operations for the fourth quarter 2014 included a $31.9 million pre-tax loss on extinguishment of long-term debt, or $0.66 per diluted share. Net income for the fourth quarter 2015 was $41.1 million, or $1.64 per diluted share, compared to $11.8 million, or $0.40 per diluted share in the prior year period. See attached reconciliation for reported adjustments related to both of these periods.

Fourth Quarter 2015 Operational Highlights (compared to the prior year period):

-- Total revenues increased 9% to $1.6 billion

-- New vehicle revenue up 9%; gross profit down 3%

-- Used vehicle retail revenue up 9%; gross profit was flat

-- Finance and insurance revenue up 13%

-- Parts and service revenue up 8%; gross profit up 9%

-- Total gross profit increased 6%

-- SG&A expense as a percent of gross profit increased 50 basis points to 70.5%

-- Income from operations increased 6%

-- Income from operations as a percentage of revenue was 4.2%

Strategic Highlights:

-- In October 2015, issued an additional $200 million of our 6.0% Senior Subordinated Notes due in 2024

-- Repurchased $44 million of common stock during Q4 and $304 million for the full year 2015

-- Sold two Nissan franchises, one VW franchise, and one Mazda franchise

-- In January 2016, the Board reset our total share repurchase authorization to $300 million

"Asbury is pleased to announce another record fourth quarter," said Craig Monaghan, Asbury’s President and Chief Executive Officer. "We continue to execute our two-part strategy: to drive operational excellence and to deploy capital to its highest returns. In 2015, we acquired dealerships representing over $160 million in annualized revenues, reduced our share count by approximately 13%, and grew income from operations 12%."

"We continued to experience margin pressure on both new and used vehicles in the fourth quarter," said Asbury’s Executive Vice President and Chief Operating Officer, David Hult. "Despite this margin pressure, our diversified business model enabled us to deliver same store gross profit growth as parts and service and F&I delivered a combined 8% growth."

For the year ended December 31, 2015, the Company reported adjusted income from continuing operations of $147.0 million, or $5.57 per diluted share, versus adjusted income from continuing operations for the full year 2014 of $131.5 million, or $4.37 per diluted share. See attached reconciliation for reported adjustments related to both of these periods. Net income for the full year 2015 was $169.2 million, or $6.41 per diluted share, compared to $111.6 million, or $3.71 per diluted share in the prior year period.

The conference call will be today at 10:00 a.m. Eastern Time and will also be simulcast live on the Internet. The simulcast can be accessed by logging onto 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) 768-6544 (domestic), or (785) 830-7990 (international); passcode - 312559. 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 - 312559.

About Asbury Automotive Group, Inc.

Asbury Automotive Group, Inc. ("Asbury"), a Fortune 500 company headquartered in Duluth, Georgia, a suburb of Atlanta, is one of the largest automotive retailers in the U.S. Built through a combination of organic growth and a series of strategic acquisitions, Asbury operated 81 dealership locations, encompassing 99 franchises for the sale and servicing of 28 domestic and foreign brands of new vehicles as of December 31, 2015. We also operated 25 collision repair centers and 3 stand-alone used vehicle stores as of December 31, 2015. 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.

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, particularly upcoming maturities, 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.

ASBURY AUTOMOTIVE GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME  (In millions, except per share data)
(Unaudited)
                                              For the Three Months Ended              Increase   %
                                              December 31,                            (Decrease) Change
                                              2015                2014
REVENUE:
New vehicle                                   $        931.8      $        851.8      $   80.0   9     %
Used vehicle:
Retail                                        407.7               375.0               32.7       9     %
Wholesale                                     50.0                47.3                2.7        6     %
Total used vehicle                            457.7               422.3               35.4       8     %
Parts and service                             185.2               170.7               14.5       8     %
Finance and insurance, net                    65.8                58.2                7.6        13    %
TOTAL REVENUE                                 1,640.5             1,503.0             137.5      9     %
GROSS PROFIT:
New vehicle                                   50.5                51.9                (1.4)      (3)   %
Used vehicle:
Retail                                        30.5                30.5                --         --    %
Wholesale                                     (1.1)               (1.4)               0.3        (21)  %
Total used vehicle                            29.4                29.1                0.3        1     %
Parts and service                             114.7               105.4               9.3        9     %
Finance and insurance, net                    65.8                58.2                7.6        13    %
TOTAL GROSS PROFIT                            260.4               244.6               15.8       6     %
OPERATING EXPENSES:
Selling, general and administrative           183.5               171.1               12.4       7     %
Depreciation and amortization                 7.5                 7.0                 0.5        7     %
Other operating (income) expense, net         (0.3)               0.8                 (1.1)      (138) %
INCOME FROM OPERATIONS                        69.7                65.7                4.0        6     %
OTHER (INCOME) EXPENSES:
Floor plan interest expense                   4.1                 3.1                 1.0        32    %
Other interest expense, net                   12.5                10.7                1.8        17    %
Swap interest expense                         1.0                 0.5                 0.5        100   %
Loss on extinguishment of long-term debt, net --                  31.9                (31.9)     (100) %
Gain on divestitures                          (13.5)              --                  (13.5)     NM
Total other (income) expenses, net            4.1                 46.2                (42.1)     (91)  %
INCOME FROM CONTINUING OPERATIONS             65.6                19.5                46.1       236   %
BEFORE INCOME TAXES
Income tax expense                            24.4                7.6                 16.8       221   %
INCOME FROM CONTINUING OPERATIONS             41.2                11.9                29.3       246   %
Discontinued operations, net of tax           (0.1)               (0.1)               --         --    %
NET INCOME                                    $        41.1       $        11.8       $   29.3   248   %
EARNINGS PER COMMON SHARE:
Basic--
Continuing operations                         $        1.65       $        0.41       $   1.24   302   %
Discontinued operations                       --                  --                  --         --    %
Net income                                    $        1.65       $        0.41       $   1.24   302   %
Diluted--
Continuing operations                         $        1.65       $        0.41       $   1.24   302   %
Discontinued operations                       (0.01)              (0.01)              --         --    %
Net income                                    $        1.64       $        0.40       $   1.24   310   %
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic                                         24.9                29.0                (4.1)      (14)  %
Restricted stock                              --                  0.1                 (0.1)      (100) %
Performance share units                       0.1                 0.2                 (0.1)      (50)  %
Diluted                                       25.0                29.3                (4.3)      (15)  %

______________________________

NM--Not Meaningful

ASBURY AUTOMOTIVE GROUP, INC.
KEY OPERATING HIGHLIGHTS  (In millions, except per unit data)
(Unaudited)
                                                          For the Three Months Ended      Increase           %
                                                          December 31,                    (Decrease)         Change
                                                          2015            2014
Unit sales
New vehicle:
Luxury                                                    6,809           6,984           (175)              (3)  %
Import                                                    14,581          14,039          542                4    %
Domestic                                                  4,770           3,194           1,576              49   %
Total new vehicle                                         26,160          24,217          1,943              8    %
Used vehicle retail                                       19,425          18,205          1,220              7    %
Used to new ratio                                         74.3         %  75.2         %  (90)        bps
Average selling price
New vehicle                                               $     35,619    $     35,174    $     445          1    %
Used vehicle retail                                       20,988          20,599          389                2    %
Average gross profit per unit
New vehicle:
Luxury                                                    $     3,466     $     3,823     $     (357)        (9)  %
Import                                                    1,228           1,268           (40)               (3)  %
Domestic                                                  1,887           2,317           (430)              (19) %
Total new vehicle                                         1,930           2,143           (213)              (10) %
Used vehicle                                              1,570           1,675           (105)              (6)  %
Finance and insurance, net                                1,443           1,372           71                 5    %
Front end yield (1)                                       3,220           3,314           (94)               (3)  %
Gross margin
New vehicle:
Luxury                                                    6.7          %  7.4          %  (70)        bps
Import                                                    4.5          %  4.7          %  (20)        bps
Domestic                                                  5.1          %  6.6          %  (150)       bps
Total new vehicle                                         5.4          %  6.1          %  (70)        bps
Used vehicle retail                                       7.5          %  8.1          %  (60)        bps
Parts and service                                         61.9         %  61.7         %  20          bps
Gross profit margin                                       15.9         %  16.3         %  (40)        bps
SG&A metrics
Rent expense                                              $     7.8       $     7.7       $     0.1          1    %
SG&A, excluding rent expense as a percent of gross profit 67.5         %  66.8         %  70          bps
Total SG&A as a percentage of gross profit                70.5         %  70.0         %  50          bps
Operating metrics
Income from operations as a percentage of revenue         4.2          %  4.4          %  (20)        bps
Income from operations as a percentage of gross profit    26.8         %  26.9         %  (10)        bps
Revenue mix
New vehicle                                               56.8         %  56.7         %
Used vehicle retail                                       24.9         %  24.9         %
Used vehicle wholesale                                    3.0          %  3.1          %
Parts and service                                         11.3         %  11.4         %
Finance and insurance                                     4.0          %  3.9          %
Total revenue                                             100.0        %  100.0        %
Gross profit mix
New vehicle                                               19.4         %  21.2         %
Used vehicle retail                                       11.7         %  12.5         %
Used vehicle wholesale                                    (0.4)        %  (0.6)        %
Parts and service                                         44.0         %  43.1         %
Finance and insurance                                     25.3         %  23.8         %
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 sales.

ASBURY AUTOMOTIVE GROUP, INC.
SAME STORE OPERATING HIGHLIGHTS  (In millions)
(Unaudited)
                                             For the Three Months Ended        Increase       %
                                             December 31,                      (Decrease)     Change
                                             2015             2014
Revenue
New vehicle:
Luxury                                       $   353.9        $   348.0        $   5.9        2   %
Import                                       383.0            358.0            25.0           7   %
Domestic                                     134.5            112.9            21.6           19  %
Total new vehicle                            871.4            818.9            52.5           6   %
Used Vehicle:
Retail                                       384.3            361.3            23.0           6   %
Wholesale                                    47.0             45.1             1.9            4   %
Total used vehicle                           431.3            406.4            24.9           6   %
Parts and service                            175.8            163.8            12.0           7   %
Finance and insurance                        60.7             55.9             4.8            9   %
Total revenue                                $   1,539.2      $   1,445.0      $   94.2       7   %
Gross profit
New vehicle:
Luxury                                       $   23.6         $   25.7         $   (2.1)      (8) %
Import                                       17.0             16.7             0.3            2   %
Domestic                                     7.0              7.4              (0.4)          (5) %
Total new vehicle                            47.6             49.8             (2.2)          (4) %
Used Vehicle:
Retail                                       28.8             29.6             (0.8)          (3) %
Wholesale                                    (0.9)            (1.3)            0.4            31  %
Total used vehicle                           27.9             28.3             (0.4)          (1) %
Parts and service:
Customer pay                                 60.0             56.9             3.1            5   %
Reconditioning and preparation               27.3             24.3             3.0            12  %
Warranty                                     16.5             15.3             1.2            8   %
Wholesale parts                              5.0              4.8              0.2            4   %
Total parts and service                      108.8            101.3            7.5            7   %
Finance and insurance                        60.7             55.9             4.8            9   %
Total gross profit                           $   245.0        $   235.3        $   9.7        4   %
SG&A expense                                 $   172.9        $   164.5        $   8.4        5   %
SG&A expense as a percentage of gross profit 70.6        %    69.9        %    70        bps

_____________________________

Same store amounts consist of information from dealership 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.

ASBURY AUTOMOTIVE GROUP, INC.
SAME STORE OPERATING HIGHLIGHTS  (Continued)
(Unaudited)
                              For the Three Months Ended      Increase       %
                              December 31,                    (Decrease)     Change
                              2015            2014
Unit sales
New vehicle:
Luxury                        6,809           6,751           58             1    %
Import                        13,891          13,304          587            4    %
Domestic                      3,662           3,194           468            15   %
Total new vehicle             24,362          23,249          1,113          5    %
Used vehicle retail           18,191          17,511          680            4    %
Used to new ratio             74.7       %    75.3       %    (60)      bps
Average selling price
New vehicle                   $   35,769      $   35,223      $   546        2    %
Used vehicle retail           21,126          20,633          493            2    %
Average gross profit per unit
New vehicle:
Luxury                        $   3,466       $   3,807       $   (341)      (9)  %
Import                        1,224           1,255           (31)           (2)  %
Domestic                      1,912           2,317           (405)          (17) %
Total new vehicle             1,954           2,142           (188)          (9)  %
Used vehicle                  1,583           1,690           (107)          (6)  %
Finance and insurance, net    1,426           1,371           55             4    %
Front end yield (1)           3,222           3,319           (97)           (3)  %
Gross margin
New vehicle:
Luxury                        6.7        %    7.4        %    (70)      bps
Import                        4.4        %    4.7        %    (30)      bps
Domestic                      5.2        %    6.6        %    (140)     bps
Total new vehicle             5.5        %    6.1        %    (60)      bps
Used vehicle retail           7.5        %    8.2        %    (70)      bps
Parts and service             61.9       %    61.8       %    10        bps
Gross profit margin           15.9       %    16.3       %    (40)      bps

_____________________________

Same store amounts consist of information from dealership 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 sales.

ASBURY AUTOMOTIVE GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
(Unaudited)
                                              For the Twelve Months Ended Increase    %
                                              December 31,                (Decrease)  Change
                                              2015          2014
REVENUE:
New vehicle                                   $   3,652.5   $   3,230.6   $   421.9   13    %
Used vehicle:
Retail                                        1,717.5       1,534.9       182.6       12    %
Wholesale                                     214.2         206.6         7.6         4     %
Total used vehicle                            1,931.7       1,741.5       190.2       11    %
Parts and service                             740.7         666.6         74.1        11    %
Finance and insurance, net                    263.4         229.0         34.4        15    %
TOTAL REVENUE                                 6,588.3       5,867.7       720.6       12    %
GROSS PROFIT:
New vehicle                                   203.0         198.3         4.7         2     %
Used vehicle:
Retail                                        136.1         130.0         6.1         5     %
Wholesale                                     (4.3)         (2.3)         (2.0)       87    %
Total used vehicle                            131.8         127.7         4.1         3     %
Parts and service                             462.6         412.2         50.4        12    %
Finance and insurance, net                    263.4         229.0         34.4        15    %
TOTAL GROSS PROFIT                            1,060.8       967.2         93.6        10    %
OPERATING EXPENSES:
Selling, general and administrative           729.9         671.6         58.3        9     %
Depreciation and amortization                 29.5          26.4          3.1         12    %
Other operating (income) expense, net         (0.2)         1.0           (1.2)       (120) %
INCOME FROM OPERATIONS                        301.6         268.2         33.4        12    %
OTHER (INCOME) EXPENSES:
Floor plan interest expense                   16.1          12.4          3.7         30    %
Other interest expense, net                   44.0          38.9          5.1         13    %
Swap interest expense                         3.0           2.0           1.0         50    %
Loss on extinguishment of long-term debt, net --            31.9          (31.9)      (100) %
Gain on divestitures                          (34.9)        --            (34.9)      NM
Total other (income) expenses, net            28.2          85.2          (57.0)      (67)  %
INCOME FROM CONTINUING OPERATIONS             273.4         183.0         90.4        49    %
BEFORE INCOME TAXES
Income tax expense                            104.0         71.0          33.0        46    %
INCOME FROM CONTINUING OPERATIONS             169.4         112.0         57.4        51    %
Discontinued operations, net of tax           (0.2)         (0.4)         0.2         (50)  %
NET INCOME                                    $   169.2     $   111.6     $   57.6    52    %
EARNINGS PER COMMON SHARE:
Basic--
Continuing operations                         $   6.44      $   3.75      $   2.69    72    %
Discontinued operations                       (0.01)        (0.02)        0.01        (50)  %
Net income                                    $   6.43      $   3.73      $   2.70    72    %
Diluted--
Continuing operations                         $   6.42      $   3.72      $   2.70    73    %
Discontinued operations                       (0.01)        (0.01)        --          --    %
Net income                                    $   6.41      $   3.71      $   2.70    73    %
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic                                         26.3          29.9          (3.6)       (12)  %
Restricted stock                              --            0.1           (0.1)       (100) %
Performance share units                       0.1           0.1           --          --    %
Diluted                                       26.4          30.1          (3.7)       (12)  %

______________________________

NM--Not Meaningful

ASBURY AUTOMOTIVE GROUP, INC.
KEY OPERATING HIGHLIGHTS  (In millions, except per unit data)
(Unaudited)
                                                          For the Twelve Months Ended         Increase         %
                                                          December 31,                        (Decrease)       Change
                                                          2015              2014
Unit sales
New vehicle:
Luxury                                                    25,441            24,275            1,166            5    %
Import                                                    61,633            57,980            3,653            6    %
Domestic                                                  18,907            13,309            5,598            42   %
Total new vehicle                                         105,981           95,564            10,417           11   %
Used vehicle retail                                       82,589            75,173            7,416            10   %
Used to new ratio                                         77.9        %     78.7        %     (80)       bps
Average selling price
New vehicle                                               $    34,464       $    33,806       $    658         2    %
Used vehicle retail                                       20,796            20,418            378              2    %
Average gross profit per unit
New vehicle:
Luxury                                                    $    3,428        $    3,736        $    (308)       (8)  %
Import                                                    1,254             1,368             (114)            (8)  %
Domestic                                                  2,036             2,126             (90)             (4)  %
Total new vehicle                                         1,915             2,075             (160)            (8)  %
Used vehicle                                              1,648             1,729             (81)             (5)  %
Finance and insurance, net                                1,397             1,341             56               4    %
Front end yield (1)                                       3,195             3,264             (69)             (2)  %
Gross margin
New vehicle:
Luxury                                                    6.7         %     7.3         %     (60)       bps
Import                                                    4.6         %     5.2         %     (60)       bps
Domestic                                                  5.6         %     6.3         %     (70)       bps
Total new vehicle                                         5.6         %     6.1         %     (50)       bps
Used vehicle retail                                       7.9         %     8.5         %     (60)       bps
Parts and service                                         62.5        %     61.8        %     70         bps
Gross profit margin                                       16.1        %     16.5        %     (40)       bps
SG&A metrics
Rent expense                                              $    31.3         $    30.8         $    0.5         2    %
SG&A, excluding rent expense as a percent of gross profit 65.9        %     66.3        %     (40)       bps
Total SG&A as a percentage of gross profit                68.8        %     69.4        %     (60)       bps
Operating metrics
Income from operations as a percentage of revenue         4.6         %     4.6         %     --         bps
Income from operations as a percentage of gross profit    28.4        %     27.7        %     70         bps
Revenue mix
New vehicle                                               55.4        %     55.1        %
Used vehicle retail                                       26.1        %     26.1        %
Used vehicle wholesale                                    3.3         %     3.5         %
Parts and service                                         11.2        %     11.4        %
Finance and insurance                                     4.0         %     3.9         %
Total revenue                                             100.0       %     100.0       %
Gross profit mix
New vehicle                                               19.1        %     20.5        %
Used vehicle retail                                       12.9        %     13.4        %
Used vehicle wholesale                                    (0.4)       %     (0.2)       %
Parts and service                                         43.6        %     42.6        %
Finance and insurance                                     24.8        %     23.7        %
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 sales.

ASBURY AUTOMOTIVE GROUP, INC.
SAME STORE OPERATING HIGHLIGHTS  (In millions)
(Unaudited)
                                             For the Twelve Months Ended       Increase       %
                                             December 31,                      (Decrease)     Change
                                             2015             2014
Revenue
New vehicle:
Luxury                                       $   1,281.9      $   1,195.7      $   86.2       7   %
Import                                       1,556.9          1,451.5          105.4          7   %
Domestic                                     508.1            450.1            58.0           13  %
Total new vehicle                            3,346.9          3,097.3          249.6          8   %
Used Vehicle:
Retail                                       1,564.9          1,470.2          94.7           6   %
Wholesale                                    194.7            194.9            (0.2)          --  %
Total used vehicle                           1,759.6          1,665.1          94.5           6   %
Parts and service                            693.8            638.8            55.0           9   %
Finance and insurance                        237.8            219.3            18.5           8   %
Total revenue                                $   6,038.1      $   5,620.5      $   417.6      7   %
Gross profit
New vehicle:
Luxury                                       $   86.1         $   87.4         $   (1.3)      (1) %
Import                                       72.3             74.9             (2.6)          (3) %
Domestic                                     28.9             28.3             0.6            2   %
Total new vehicle                            187.3            190.6            (3.3)          (2) %
Used Vehicle:
Retail                                       125.2            124.9            0.3            --  %
Wholesale                                    (3.4)            (2.1)            (1.3)          62  %
Total used vehicle                           121.8            122.8            (1.0)          (1) %
Parts and service:
Customer pay                                 237.3            225.5            11.8           5   %
Reconditioning and preparation               110.4            97.7             12.7           13  %
Warranty                                     64.9             52.9             12.0           23  %
Wholesale parts                              19.8             19.4             0.4            2   %
Total parts and service                      432.4            395.5            36.9           9   %
Finance and insurance                        237.8            219.3            18.5           8   %
Total gross profit                           $   979.3        $   928.2        $   51.1       6   %
SG&A expense                                 $   675.0        $   644.5        $   30.5       5   %
SG&A expense as a percentage of gross profit 68.9        %    69.4        %    (50)      bps

_____________________________

Same store amounts consist of information from dealership 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.

ASBURY AUTOMOTIVE GROUP, INC.
SAME STORE OPERATING HIGHLIGHTS  (Continued)
(Unaudited)
                              For the Twelve Months Ended     Increase       %
                              December 31,                    (Decrease)     Change
                              2015            2014
Unit sales
New vehicle:
Luxury                        25,063          23,418          1,645          7   %
Import                        57,562          54,636          2,926          5   %
Domestic                      14,162          13,309          853            6   %
Total new vehicle             96,787          91,363          5,424          6   %
Used vehicle retail           74,715          71,833          2,882          4   %
Used to new ratio             77.2       %    78.6       %    (140)     bps
Average selling price
New vehicle                   $   34,580      $   33,901      $   679        2   %
Used vehicle retail           20,945          20,467          478            2   %
Average gross profit per unit
New vehicle:
Luxury                        $   3,435       $   3,732       $   (297)      (8) %
Import                        1,256           1,371           (115)          (8) %
Domestic                      2,041           2,126           (85)           (4) %
Total new vehicle             1,935           2,086           (151)          (7) %
Used vehicle                  1,676           1,739           (63)           (4) %
Finance and insurance, net    1,387           1,344           43             3   %
Front end yield (1)           3,209           3,277           (68)           (2) %
Gross margin
New vehicle:
Luxury                        6.7        %    7.3        %    (60)      bps
Import                        4.6        %    5.2        %    (60)      bps
Domestic                      5.7        %    6.3        %    (60)      bps
Total new vehicle             5.6        %    6.2        %    (60)      bps
Used vehicle retail           8.0        %    8.5        %    (50)      bps
Parts and service             62.3       %    61.9       %    40        bps
Gross profit margin           16.2       %    16.5       %    (30)      bps

_____________________________

Same store amounts consist of information from dealership 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 sales.

ASBURY AUTOMOTIVE GROUP, INC.
Additional Disclosures (In millions)
(Unaudited)
                                           December 31,   December 31,   Increase    % Change
                                           2015           2014           (Decrease)
SELECTED BALANCE SHEET DATA
Cash and cash equivalents                  $    2.8       $    2.9       $   (0.1)   (3)  %
New vehicle inventory                      739.2          699.5          39.7        6    %
Used vehicle inventory                     134.1          141.7          (7.6)       (5)  %
Parts inventory                            43.9           44.8           (0.9)       (2)  %
Total current assets                       1,343.0        1,275.4        67.6        5    %
Floor plan notes payable                   712.2          766.8          (54.6)      (7)  %
Total current liabilities                  1,007.8        1,039.8        (32.0)      (3)  %
CAPITALIZATION:
Long-term debt (including current portion) $    954.3     $    697.4     $   256.9   37   %
Shareholders’ equity                       314.5          444.9          (130.4)     (29) %
Total                                      $    1,268.8   $    1,142.3   $   126.5   11   %
                       December 31,  December 31,
                       2015          2014
DAYS SUPPLY
New vehicle inventory  62            63
Used vehicle inventory 30            35

_____________________________

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 Year Ended
                          December 31,
                          2015      2014
Luxury:
BMW                       8      %  9      %
Mercedes-Benz             7      %  8      %
Lexus                     7      %  7      %
Acura                     5      %  5      %
Infiniti                  3      %  4      %
Other luxury              6      %  5      %
Total luxury              36     %  38     %
Imports:
Honda                     16     %  17     %
Nissan                    12     %  12     %
Toyota                    12     %  13     %
Other imports             6      %  6      %
Total imports             46     %  48     %
Domestic:
Ford                      11     %  7      %
Dodge                     2      %  2      %
Chevrolet                 3      %  2      %
Other domestics           2      %  3      %
Total domestic            18     %  14     %
Total New Vehicle Revenue 100    %  100    %
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 income from continuing operations," and "Adjusted diluted earnings per share ("EPS") from continuing operations." 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.

The following tables are reconciliations for our non-core operating items:

                                                                      For the Three Months Ended
                                                                      December 31,
                                                                      2015             2014
                                                                      (In millions, except per share data)
Adjusted income from continuing operations:
Net income                                                            $       41.1     $       11.8
Discontinued operations, net of tax                                   0.1              0.1
Income from continuing operations                                     41.2             11.9
Non-core items - income:
Gain on divestitures (net of $5.1 million of tax)                     (8.4)            --
Loss on extinguishment of long-term debt                              --               31.9
Income tax benefit                                                    --               (12.4)
Total non-core items                                                  (8.4)            19.5
Adjusted income from continuing operations                            $       32.8     $       31.4
Adjusted diluted earnings per share (EPS) from continuing operations:
Net income                                                            $       1.64     $       0.40
Discontinued operations, net of tax                                   0.01             0.01
Income from continuing operations                                     $       1.65     $       0.41
Total non-core items                                                  (0.34)           0.66
Adjusted diluted EPS from continuing operations                       $       1.31     $       1.07
Weighted average common shares outstanding - diluted                  25.0             29.3
                                                                      For the Twelve Months Ended
                                                                      December 31,
                                                                      2015         2014
                                                                      (In millions, except per share data)
Adjusted income from continuing operations:
Net income                                                            $     169.2  $     111.6
Discontinued operations, net of tax                                   0.2                0.4
Income from continuing operations                                     169.4              112.0
Non-core items - income:
Gain on divestitures (net of $13.3 million of tax)                    (21.6)             --
Loss on extinguishment of long-term debt                              --                 31.9
Income tax benefit                                                    (0.8)              (12.4)
Total non-core items                                                  (22.4)             19.5
Adjusted income from continuing operations                            $     147.0  $     131.5
Adjusted diluted earnings per share (EPS) from continuing operations:
Net income                                                            $     6.41   $     3.71
Discontinued operations, net of tax                                   0.01         0.01
Income from continuing operations                                     $     6.42   $     3.72
Total non-core items                                                  (0.85)             0.65
Adjusted diluted EPS from continuing operations                       $     5.57   $     4.37
Weighted average common shares outstanding - diluted                  26.4               30.1

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/asbury-automotive-group-announces-record-2015-fourth-quarter-and-full-year-financial-results-300215064.html

SOURCE Asbury Automotive Group, Inc.

http://rt.prnewswire.com/rt.gif?NewsItemId=CL14929&Transmission_Id=201602040700PR_NEWS_USPR_____CL14929&DateId=20160204



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