Page 1

ASBURY clicklane AUTOMOTIVE GROUP Asbury Automotive Group Announces Record Third Quarter 2021 Financial Results October 26 , 2021 • Third quarter EPS of $ 7.54 per diluted share , up 52 % over prior year EPS • Third quarter adjusted EPS of $ 7.36 per diluted share ( a non - GAAP measure ) , up 80 % over prior year adjusted EPS • Third quarter revenue increased 30 % and gross profit increased 43 % over prior year quarter • Third quarter SG & A as a percentage of gross profit decreased 550 bps over prior year to 56.0 % , while adjusted SG & A decreased 580 bps to 55.3 % DULUTH , Ga .-- ( BUSINESS WIRE ) -- Oct . 26 , 2021-- Asbury Automotive Group , Inc. ( NYSE : ABG ) , one of the largest automotive retail and service companies in the U.S. , reported record net income for the third quarter 2021 of $ 147.0 million ( $ 7.54 per diluted share ) . This result compares to net income of $ 96.2 million ( $ 4.96 per diluted share ) in the prior year quarter . The financial measures discussed below include both GAAP and adjusted ( non - GAAP ) financial measures . Please see reconciliations for our non - GAAP metrics included in the accompanying financial tables . " This quarter , though the supply of new inventory remained constrained , our teams continued to excel and achieved record third quarter levels in revenue , operating margins , SG & A as a percentage of gross profit , net income , and EPS . We are trending well on our same store pillar of our five - year growth plan , " said David Hult , Asbury's President and Chief Executive Officer . " In addition , on our M & A pillar , we announced the upcoming transformative acquisition of the Larry H. Miller Dealerships and Total Care Auto , Powered by Landcar , with annualized revenues of approximately $ 5.7 billion . Along with other acquisitions , both closed and under contract , of an additional $ 900 million , in 2021 , we expect to close on acquisitions totaling $ 6.6 billion in annualized revenue . Overall , we are tracking to surpass our strategic five - year plan . " The Company reported adjusted net income ( a non - GAAP measure ) for the third quarter 2021 of $ 143.6 million ( $ 7.36 per diluted share ) compared to $ 79.2 million ( $ 4.08 per diluted share ) in the prior year quarter . Net income for the third quarter 2021 was adjusted for acquisition expenses of $ 3.5 million ( $ 0.13 per diluted share ) and gain on divestiture of $ 8.0 million ( $ 0.31 per diluted share ) . Net income for the third quarter 2020 was adjusted for a $ 24.7 million ( $ 0.96 per diluted share ) gain on a dealership divestiture , $ 1.3 million ( $ 0.05 per diluted share ) of acquisition related costs and a $ 0.7 million ( $ 0.03 per diluted share ) real estate related charge . The Company reported total revenue for the third quarter of $ 2.4 billion , up 30 % from the prior year period ; total revenue on a same - store basis was up 16 % from the prior year period . Third Quarter 2021 Operational Summary Total Company vs. 3rd Quarter 2020 : • Revenue increased 30 % • Gross profit increased 43 % • Gross margin increased 180 bps to 20 % • New vehicle unit volume increased 1 % ; new vehicle revenue increased 18 % ; gross profit increased 108 % • Used vehicle retail unit volume increased 36 % ; used vehicle retail revenue increased 62 % ; gross profit increased 59 % • Finance and insurance revenue and gross profit increased 24 % • Parts and service revenue and gross profit increased 25 % ; customer pay revenue and gross profit increased 30 % • Adjusted SG & A as a percentage of gross profit fell to 55.3 % , a decrease of 580 bps ● Operating income increased 69 % ● Operating margin increased 190 bps to 8.4 % ; adjusted operating margin increased 190 bps to 8.5 % • Adjusted EPS increased 80 % to $ 7.36 Same store vs. 3rd Quarter 2020 : • Revenue increased 16 % • Gross profit increased 28 % • Gross margin increased 190 bps to 20.1 % • New vehicle unit volume decreased 7 % ; new vehicle revenue increased 5 % ; gross profit increased 83 % • Used vehicle retail unit volume increased 27 % ; used vehicle retail revenue increased 47 % ; gross profit increased 45 % • Finance and insurance revenue and gross profit increased 18 % • Parts and service revenue and gross profit increased 10 % ; customer pay gross profit increased 12 % Liquidity and Leverage