|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
001-31262
|
|
01-0609375
|
|
|
(Commission File Number)
|
|
(IRS Employer Identification No.)
|
|
|
|
|
|
|
|
2905 Premiere Parkway NW Suite 300
|
|
|
|
|
Duluth,
|
GA
|
|
30097
|
|
(Address of principal executive offices)
|
|
(Zip Code)
|
|
|
|
|
☐
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
☐
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
☐
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
☐
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
|
|
Trading
|
|
|
Title of each class
|
|
Symbol(s)
|
|
Name of each exchange on which registered
|
Common stock, $0.01 par value per share
|
|
ABG
|
|
New York Stock Exchange
|
•
|
an increase the aggregate commitments under the revolving credit facility to $350,000,000,
|
•
|
an increase the aggregate commitments under the new vehicle revolving floorplan facility to $1,350,000,000 and
|
•
|
an increase the aggregate commitments under the used vehicle revolving floorplan facility to $200,000,000.
|
|
Exhibit No.
|
|
Description
|
|
|
|
|
|
|
First Amendment to the Third Amended and Restated Credit Agreement, dated January 31, 2020, among Asbury Automotive Group, Inc., as a borrower, certain of its subsidiaries, as vehicle borrowers, Bank of America, N.A., as administrative agent, revolving swing line lender, new vehicle floorplan swing line lender, used vehicle floorplan swingline lender and an l/c issuer, and the other lenders party thereto, JPMorgan Chase Bank, N.A. and Wells Fargo Bank, N.A., as co-syndication agents, Mercedes-Benz Financial Services USA LLC and Toyota Motor Credit Corporation, as co-documentation agents, and BofA Securities, Inc. as sole lead arranger and sole bookrunner
|
|
|
|
Press Release dated February 3, 2020.
|
|
ASBURY AUTOMOTIVE GROUP, INC.
|
||
|
|
|
|
Date: February 3, 2020
|
By:
|
|
/s/ William F. Stax
|
|
Name:
|
|
William F. Stax
|
|
Title:
|
|
Interim Principal Financial Officer, Controller and Chief Accounting Officer
|
1.2
|
Amendments to Credit Agreement Effective on First Amendment Effective Date.
|
1.4
|
Assignments and Allocations.
|
•
|
Total revenue increased 6%; gross profit increased 7%
|
•
|
Gross margin increased 10 basis points to 15.9%
|
•
|
SG&A as a percentage of gross profit increased 10 basis points to 68.3%
|
•
|
Adjusted operating margin increased 10 basis point to 4.6%
|
•
|
Adjusted EPS increased 15%
|
•
|
Total revenue increased 2%; gross profit increased 3%
|
•
|
Gross margin increased 20 basis points to 16.0%
|
•
|
New vehicle revenue decreased 3%; gross profit decreased 4%
|
•
|
Used vehicle retail revenue increased 10%; gross profit increased 1%
|
•
|
Finance and insurance revenue and gross profit increased 4%
|
•
|
Parts and service revenue increased 5%; gross profit increased 4%
|
•
|
Signed an agreement to acquire 20 Park Place luxury franchises that we expect to close in March 2020, subject to customary closing conditions. We expect these dealerships to generate approximately $1.9 billion in annualized revenue.
|
•
|
Acquired a Chrysler Jeep Dodge Ram store in the Denver market in late January 2020. We expect this store to generate approximately $124 million in annual revenues.
|
•
|
Signed an agreement to divest all five stores in the Mississippi market that we expect to close in March 2020, subject to customary closing conditions. These dealerships generated approximately $334 million in annualized revenue.
|
•
|
Signed an agreement to divest our Nissan Atlanta store that we expect to close in February 2020, subject to customary closing conditions. This dealership generated approximately $77 million in annualized revenue.
|
|
For the Three Months Ended December 31,
|
|
Increase
(Decrease) |
|
%
Change |
|||||||||
|
2019
|
|
2018
|
|
|
|||||||||
REVENUE:
|
|
|
|
|
|
|
|
|||||||
New vehicle
|
$
|
1,039.4
|
|
|
$
|
1,022.4
|
|
|
$
|
17.0
|
|
|
2
|
%
|
Used vehicle:
|
|
|
|
|
|
|
|
|
|
|||||
Retail
|
491.5
|
|
|
427.9
|
|
|
63.6
|
|
|
15
|
%
|
|||
Wholesale
|
49.7
|
|
|
45.5
|
|
|
4.2
|
|
|
9
|
%
|
|||
Total used vehicle
|
541.2
|
|
|
473.4
|
|
|
67.8
|
|
|
14
|
%
|
|||
Parts and service
|
229.7
|
|
|
211.1
|
|
|
18.6
|
|
|
9
|
%
|
|||
Finance and insurance, net
|
83.7
|
|
|
77.3
|
|
|
6.4
|
|
|
8
|
%
|
|||
TOTAL REVENUE
|
1,894.0
|
|
|
1,784.2
|
|
|
109.8
|
|
|
6
|
%
|
|||
GROSS PROFIT:
|
|
|
|
|
|
|
|
|||||||
New vehicle
|
44.7
|
|
|
43.9
|
|
|
0.8
|
|
|
2
|
%
|
|||
Used vehicle:
|
|
|
|
|
|
|
|
|
|
|||||
Retail
|
30.9
|
|
|
29.3
|
|
|
1.6
|
|
|
5
|
%
|
|||
Wholesale
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|
—
|
%
|
|||
Total used vehicle
|
31.3
|
|
|
29.3
|
|
|
2.0
|
|
|
7
|
%
|
|||
Parts and service
|
141.9
|
|
|
131.3
|
|
|
10.6
|
|
|
8
|
%
|
|||
Finance and insurance, net
|
83.7
|
|
|
77.3
|
|
|
6.4
|
|
|
8
|
%
|
|||
TOTAL GROSS PROFIT
|
301.6
|
|
|
281.8
|
|
|
19.8
|
|
|
7
|
%
|
|||
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|||||||
Selling, general and administrative
|
206.1
|
|
|
192.2
|
|
|
13.9
|
|
|
7
|
%
|
|||
Depreciation and amortization
|
9.5
|
|
|
8.5
|
|
|
1.0
|
|
|
12
|
%
|
|||
Franchise rights impairment
|
7.1
|
|
|
3.7
|
|
|
3.4
|
|
|
92
|
%
|
|||
Other operating (income) expenses, net
|
(0.2
|
)
|
|
0.1
|
|
|
(0.3
|
)
|
|
NM
|
|
|||
INCOME FROM OPERATIONS
|
79.1
|
|
|
77.3
|
|
|
1.8
|
|
|
2
|
%
|
|||
OTHER EXPENSES:
|
|
|
|
|
|
|
|
|||||||
Floor plan interest expense
|
8.2
|
|
|
9.5
|
|
|
(1.3
|
)
|
|
(14
|
)%
|
|||
Other interest expense, net
|
13.7
|
|
|
13.7
|
|
|
—
|
|
|
—
|
%
|
|||
Total other expenses, net
|
21.9
|
|
|
23.2
|
|
|
(1.3
|
)
|
|
(6
|
)%
|
|||
INCOME BEFORE INCOME TAXES
|
57.2
|
|
|
54.1
|
|
|
3.1
|
|
|
6
|
%
|
|||
Income tax expense
|
13.6
|
|
|
13.7
|
|
|
(0.1
|
)
|
|
(1
|
)%
|
|||
NET INCOME
|
$
|
43.6
|
|
|
$
|
40.4
|
|
|
$
|
3.2
|
|
|
8
|
%
|
EARNINGS PER COMMON SHARE:
|
|
|
|
|
|
|
|
|||||||
Basic—
|
|
|
|
|
|
|
|
|||||||
Net income
|
$
|
2.28
|
|
|
$
|
2.09
|
|
|
$
|
0.19
|
|
|
9
|
%
|
Diluted—
|
|
|
|
|
|
|
|
|||||||
Net income
|
$
|
2.26
|
|
|
$
|
2.06
|
|
|
$
|
0.20
|
|
|
10
|
%
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|||||||
Basic
|
19.1
|
|
|
19.3
|
|
|
(0.2
|
)
|
|
(1
|
)%
|
|||
Restricted stock
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
%
|
|||
Performance share units
|
0.1
|
|
|
0.2
|
|
|
(0.1
|
)
|
|
(50
|
)%
|
|||
Diluted
|
19.3
|
|
|
19.6
|
|
|
(0.3
|
)
|
|
(2
|
)%
|
|
For the Three Months Ended December 31,
|
|
Increase
(Decrease) |
|
%
Change |
|||||||||
|
2019
|
|
2018
|
|
|
|||||||||
Unit sales
|
|
|
|
|
|
|
|
|||||||
New vehicle:
|
|
|
|
|
|
|
|
|||||||
Luxury
|
7,055
|
|
|
6,452
|
|
|
603
|
|
|
9
|
%
|
|||
Import
|
15,723
|
|
|
16,394
|
|
|
(671
|
)
|
|
(4
|
)%
|
|||
Domestic
|
4,829
|
|
|
4,951
|
|
|
(122
|
)
|
|
(2
|
)%
|
|||
Total new vehicle
|
27,607
|
|
|
27,797
|
|
|
(190
|
)
|
|
(1
|
)%
|
|||
Used vehicle retail
|
22,272
|
|
|
19,298
|
|
|
2,974
|
|
|
15
|
%
|
|||
Used to new ratio
|
80.7
|
%
|
|
69.4
|
%
|
|
1130 bps
|
|
|
|
||||
Average selling price
|
|
|
|
|
|
|
|
|
||||||
New vehicle
|
$
|
37,650
|
|
|
$
|
36,781
|
|
|
$
|
869
|
|
|
2
|
%
|
Used vehicle retail
|
22,068
|
|
|
22,173
|
|
|
(105
|
)
|
|
—
|
%
|
|||
Average gross profit per unit
|
|
|
|
|
|
|
|
|||||||
New vehicle:
|
|
|
|
|
|
|
|
|
|
|||||
Luxury
|
$
|
3,586
|
|
|
$
|
3,487
|
|
|
$
|
99
|
|
|
3
|
%
|
Import
|
674
|
|
|
830
|
|
|
(156
|
)
|
|
(19
|
)%
|
|||
Domestic
|
1,822
|
|
|
1,575
|
|
|
247
|
|
|
16
|
%
|
|||
Total new vehicle
|
1,619
|
|
|
1,579
|
|
|
40
|
|
|
3
|
%
|
|||
Used vehicle retail
|
1,387
|
|
|
1,518
|
|
|
(131
|
)
|
|
(9
|
)%
|
|||
Finance and insurance, net
|
1,678
|
|
|
1,641
|
|
|
37
|
|
|
2
|
%
|
|||
Front end yield (1)
|
3,194
|
|
|
3,196
|
|
|
(2
|
)
|
|
—
|
%
|
|||
Gross margin
|
|
|
|
|
|
|
|
|||||||
New vehicle:
|
|
|
|
|
|
|
|
|||||||
Luxury
|
6.5
|
%
|
|
6.4
|
%
|
|
10 bps
|
|
|
|
||||
Import
|
2.3
|
%
|
|
2.9
|
%
|
|
(60) bps
|
|
|
|
||||
Domestic
|
4.4
|
%
|
|
3.9
|
%
|
|
50 bps
|
|
|
|
||||
Total new vehicle
|
4.3
|
%
|
|
4.3
|
%
|
|
0 bps
|
|
|
|
||||
Used vehicle retail
|
6.3
|
%
|
|
6.8
|
%
|
|
(50) bps
|
|
|
|
||||
Parts and service
|
61.8
|
%
|
|
62.2
|
%
|
|
(40) bps
|
|
|
|
||||
Total gross profit margin
|
15.9
|
%
|
|
15.8
|
%
|
|
10 bps
|
|
|
|
||||
SG&A metrics
|
|
|
|
|
|
|
|
|||||||
Rent expense
|
$
|
6.8
|
|
|
$
|
6.5
|
|
|
$
|
0.3
|
|
|
5
|
%
|
Total SG&A as a percentage of gross profit
|
68.3
|
%
|
|
68.2
|
%
|
|
10 bps
|
|
|
|
||||
SG&A, excluding rent expense as a percentage of gross profit
|
66.1
|
%
|
|
65.9
|
%
|
|
20 bps
|
|
|
|
||||
Operating metrics
|
|
|
|
|
|
|
|
|||||||
Income from operations as a percentage of revenue
|
4.2
|
%
|
|
4.3
|
%
|
|
(10) bps
|
|
|
|
||||
Income from operations as a percentage of gross profit
|
26.2
|
%
|
|
27.4
|
%
|
|
(120) bps
|
|
|
|
||||
Adjusted income from operations as a percentage of revenue
|
4.6
|
%
|
|
4.5
|
%
|
|
10 bps
|
|
|
|
||||
Adjusted income from operations as a percentage of gross profit
|
28.6
|
%
|
|
28.7
|
%
|
|
(10) bps
|
|
|
|
||||
Revenue mix
|
|
|
|
|
|
|
|
|||||||
New vehicle
|
54.9
|
%
|
|
57.3
|
%
|
|
|
|
|
|||||
Used vehicle retail
|
26.0
|
%
|
|
24.0
|
%
|
|
|
|
|
|||||
Used vehicle wholesale
|
2.6
|
%
|
|
2.6
|
%
|
|
|
|
|
|||||
Parts and service
|
12.1
|
%
|
|
11.8
|
%
|
|
|
|
|
|||||
Finance and insurance
|
4.4
|
%
|
|
4.3
|
%
|
|
|
|
|
|||||
Total revenue
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|||||
Gross profit mix
|
|
|
|
|
|
|
|
|||||||
New vehicle
|
14.8
|
%
|
|
15.6
|
%
|
|
|
|
|
|||||
Used vehicle retail
|
10.3
|
%
|
|
10.4
|
%
|
|
|
|
|
|||||
Used vehicle wholesale
|
0.1
|
%
|
|
—
|
%
|
|
|
|
|
|||||
Parts and service
|
47.0
|
%
|
|
46.6
|
%
|
|
|
|
|
|||||
Finance and insurance
|
27.8
|
%
|
|
27.4
|
%
|
|
|
|
|
|||||
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 unit sales.
|
|
For the Three Months Ended December 31,
|
|
Increase
(Decrease) |
|
%
Change |
|||||||||
|
2019
|
|
2018
|
|
|
|||||||||
Revenue
|
|
|
|
|
|
|
|
|||||||
New vehicle:
|
|
|
|
|
|
|
|
|||||||
Luxury
|
$
|
387.7
|
|
|
$
|
351.5
|
|
|
$
|
36.2
|
|
|
10
|
%
|
Import
|
426.9
|
|
|
460.8
|
|
|
(33.9
|
)
|
|
(7
|
)%
|
|||
Domestic
|
169.0
|
|
|
200.0
|
|
|
(31.0
|
)
|
|
(16
|
)%
|
|||
Total new vehicle
|
983.6
|
|
|
1,012.3
|
|
|
(28.7
|
)
|
|
(3
|
)%
|
|||
Used Vehicle:
|
|
|
|
|
|
|
|
|
|
|||||
Retail
|
465.5
|
|
|
422.6
|
|
|
42.9
|
|
|
10
|
%
|
|||
Wholesale
|
48.0
|
|
|
44.7
|
|
|
3.3
|
|
|
7
|
%
|
|||
Total used vehicle
|
513.5
|
|
|
467.3
|
|
|
46.2
|
|
|
10
|
%
|
|||
Parts and service
|
218.4
|
|
|
208.8
|
|
|
9.6
|
|
|
5
|
%
|
|||
Finance and insurance
|
79.6
|
|
|
76.4
|
|
|
3.2
|
|
|
4
|
%
|
|||
Total revenue
|
$
|
1,795.1
|
|
|
$
|
1,764.8
|
|
|
$
|
30.3
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|||||||
Gross profit
|
|
|
|
|
|
|
|
|||||||
New vehicle:
|
|
|
|
|
|
|
|
|||||||
Luxury
|
$
|
25.3
|
|
|
$
|
22.5
|
|
|
$
|
2.8
|
|
|
12
|
%
|
Import
|
9.3
|
|
|
13.3
|
|
|
(4.0
|
)
|
|
(30
|
)%
|
|||
Domestic
|
7.3
|
|
|
7.8
|
|
|
(0.5
|
)
|
|
(6
|
)%
|
|||
Total new vehicle
|
41.9
|
|
|
43.6
|
|
|
(1.7
|
)
|
|
(4
|
)%
|
|||
Used Vehicle:
|
|
|
|
|
|
|
|
|||||||
Retail
|
29.3
|
|
|
29.0
|
|
|
0.3
|
|
|
1
|
%
|
|||
Wholesale
|
0.5
|
|
|
—
|
|
|
0.5
|
|
|
—
|
%
|
|||
Total used vehicle
|
29.8
|
|
|
29.0
|
|
|
0.8
|
|
|
3
|
%
|
|||
Parts and service:
|
|
|
|
|
|
|
|
|||||||
Customer pay
|
76.5
|
|
|
73.4
|
|
|
3.1
|
|
|
4
|
%
|
|||
Warranty
|
21.2
|
|
|
20.1
|
|
|
1.1
|
|
|
5
|
%
|
|||
Wholesale parts
|
6.0
|
|
|
5.9
|
|
|
0.1
|
|
|
2
|
%
|
|||
Parts and service, excluding reconditioning and preparation
|
103.7
|
|
|
99.4
|
|
|
4.3
|
|
|
4
|
%
|
|||
Reconditioning and preparation
|
31.4
|
|
|
30.4
|
|
|
1.0
|
|
|
3
|
%
|
|||
Total parts and service
|
135.1
|
|
|
129.8
|
|
|
5.3
|
|
|
4
|
%
|
|||
Finance and insurance
|
79.6
|
|
|
76.4
|
|
|
3.2
|
|
|
4
|
%
|
|||
Total gross profit
|
$
|
286.4
|
|
|
$
|
278.8
|
|
|
$
|
7.6
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|||||||
SG&A expense
|
$
|
196.6
|
|
|
$
|
189.6
|
|
|
$
|
7.0
|
|
|
4
|
%
|
SG&A expense as a percentage of gross profit
|
68.6
|
%
|
|
68.0
|
%
|
|
60 bps
|
|
|
|
|
For the Three Months Ended December 31,
|
|
Increase
(Decrease) |
|
%
Change |
|||||||||
|
2019
|
|
2018
|
|
|
|||||||||
Unit sales
|
|
|
|
|
|
|
|
|||||||
New vehicle:
|
|
|
|
|
|
|
|
|||||||
Luxury
|
7,028
|
|
|
6,452
|
|
|
576
|
|
|
9
|
%
|
|||
Import
|
14,922
|
|
|
16,047
|
|
|
(1,125
|
)
|
|
(7
|
)%
|
|||
Domestic
|
4,109
|
|
|
4,951
|
|
|
(842
|
)
|
|
(17
|
)%
|
|||
Total new vehicle
|
26,059
|
|
|
27,450
|
|
|
(1,391
|
)
|
|
(5
|
)%
|
|||
Used vehicle retail
|
20,905
|
|
|
19,050
|
|
|
1,855
|
|
|
10
|
%
|
|||
Used to new ratio
|
80.2
|
%
|
|
69.4
|
%
|
|
1080 bps
|
|
|
|
||||
|
|
|
|
|
|
|
|
|||||||
Average selling price
|
|
|
|
|
|
|
|
|||||||
New vehicle
|
$
|
37,745
|
|
|
$
|
36,878
|
|
|
$
|
867
|
|
|
2
|
%
|
Used vehicle retail
|
22,267
|
|
|
22,184
|
|
|
83
|
|
|
—
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average gross profit per unit
|
|
|
|
|
|
|
|
|||||||
New vehicle:
|
|
|
|
|
|
|
|
|
|
|||||
Luxury
|
$
|
3,600
|
|
|
$
|
3,487
|
|
|
$
|
113
|
|
|
3
|
%
|
Import
|
623
|
|
|
829
|
|
|
(206
|
)
|
|
(25
|
)%
|
|||
Domestic
|
1,777
|
|
|
1,575
|
|
|
202
|
|
|
13
|
%
|
|||
Total new vehicle
|
1,608
|
|
|
1,588
|
|
|
20
|
|
|
1
|
%
|
|||
Used vehicle retail
|
1,402
|
|
|
1,522
|
|
|
(120
|
)
|
|
(8
|
)%
|
|||
Finance and insurance, net
|
1,695
|
|
|
1,643
|
|
|
52
|
|
|
3
|
%
|
|||
Front end yield (1)
|
3,211
|
|
|
3,204
|
|
|
7
|
|
|
—
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Gross margin
|
|
|
|
|
|
|
|
|||||||
New vehicle:
|
|
|
|
|
|
|
|
|||||||
Luxury
|
6.5
|
%
|
|
6.4
|
%
|
|
10 bps
|
|
|
|
||||
Import
|
2.2
|
%
|
|
2.9
|
%
|
|
(70) bps
|
|
|
|
||||
Domestic
|
4.3
|
%
|
|
3.9
|
%
|
|
40
|
bps
|
|
|
||||
Total new vehicle
|
4.3
|
%
|
|
4.3
|
%
|
|
0 bps
|
|
|
|
||||
Used vehicle retail
|
6.3
|
%
|
|
6.9
|
%
|
|
(60
|
) bps
|
|
|
||||
Parts and service:
|
|
|
|
|
|
|
|
|||||||
Parts and service, excluding reconditioning and preparation
|
47.5
|
%
|
|
47.6
|
%
|
|
(10) bps
|
|
|
|
||||
Parts and service, including reconditioning and preparation
|
61.9
|
%
|
|
62.2
|
%
|
|
(30) bps
|
|
|
|
||||
Total gross profit margin
|
16.0
|
%
|
|
15.8
|
%
|
|
20 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.
|
|
For the Twelve Months Ended December 31,
|
|
Increase
(Decrease) |
|
%
Change |
|||||||||
|
2019
|
|
2018
|
|
|
|||||||||
REVENUE:
|
|
|
|
|
|
|
|
|||||||
New vehicle
|
$
|
3,863.3
|
|
|
$
|
3,788.7
|
|
|
$
|
74.6
|
|
|
2
|
%
|
Used vehicle:
|
|
|
|
|
|
|
|
|
|
|||||
Retail
|
1,941.3
|
|
|
1,783.3
|
|
|
158.0
|
|
|
9
|
%
|
|||
Wholesale
|
190.3
|
|
|
189.1
|
|
|
1.2
|
|
|
1
|
%
|
|||
Total used vehicle
|
2,131.6
|
|
|
1,972.4
|
|
|
159.2
|
|
|
8
|
%
|
|||
Parts and service
|
899.4
|
|
|
821.0
|
|
|
78.4
|
|
|
10
|
%
|
|||
Finance and insurance, net
|
316.0
|
|
|
292.3
|
|
|
23.7
|
|
|
8
|
%
|
|||
TOTAL REVENUE
|
7,210.3
|
|
|
6,874.4
|
|
|
335.9
|
|
|
5
|
%
|
|||
GROSS PROFIT:
|
|
|
|
|
|
|
|
|||||||
New vehicle
|
159.5
|
|
|
165.2
|
|
|
(5.7
|
)
|
|
(3
|
)%
|
|||
Used vehicle:
|
|
|
|
|
|
|
|
|
|
|||||
Retail
|
133.1
|
|
|
127.8
|
|
|
5.3
|
|
|
4
|
%
|
|||
Wholesale
|
1.0
|
|
|
1.9
|
|
|
(0.9
|
)
|
|
(47
|
)%
|
|||
Total used vehicle
|
134.1
|
|
|
129.7
|
|
|
4.4
|
|
|
3
|
%
|
|||
Parts and service
|
559.3
|
|
|
515.8
|
|
|
43.5
|
|
|
8
|
%
|
|||
Finance and insurance, net
|
316.0
|
|
|
292.3
|
|
|
23.7
|
|
|
8
|
%
|
|||
TOTAL GROSS PROFIT
|
1,168.9
|
|
|
1,103.0
|
|
|
65.9
|
|
|
6
|
%
|
|||
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|||||||
Selling, general and administrative
|
799.8
|
|
|
755.8
|
|
|
44.0
|
|
|
6
|
%
|
|||
Depreciation and amortization
|
36.2
|
|
|
33.7
|
|
|
2.5
|
|
|
7
|
%
|
|||
Franchise rights impairment
|
7.1
|
|
|
3.7
|
|
|
3.4
|
|
|
92
|
%
|
|||
Other operating expense (income), net
|
0.8
|
|
|
(1.1
|
)
|
|
1.9
|
|
|
173
|
%
|
|||
INCOME FROM OPERATIONS
|
325.0
|
|
|
310.9
|
|
|
14.1
|
|
|
5
|
%
|
|||
OTHER EXPENSES (INCOME):
|
|
|
|
|
|
|
|
|||||||
Floor plan interest expense
|
37.9
|
|
|
32.5
|
|
|
5.4
|
|
|
17
|
%
|
|||
Other interest expense, net
|
54.9
|
|
|
53.1
|
|
|
1.8
|
|
|
3
|
%
|
|||
Swap interest expense
|
—
|
|
|
0.5
|
|
|
(0.5
|
)
|
|
(100
|
)%
|
|||
Gain on divestiture
|
(11.7
|
)
|
|
—
|
|
|
(11.7
|
)
|
|
—
|
%
|
|||
Total other expenses, net
|
81.1
|
|
|
86.1
|
|
|
(5.0
|
)
|
|
(6
|
)%
|
|||
INCOME BEFORE INCOME TAXES
|
243.9
|
|
|
224.8
|
|
|
19.1
|
|
|
8
|
%
|
|||
Income tax expense
|
59.5
|
|
|
56.8
|
|
|
2.7
|
|
|
5
|
%
|
|||
NET INCOME
|
$
|
184.4
|
|
|
$
|
168.0
|
|
|
$
|
16.4
|
|
|
10
|
%
|
EARNINGS PER COMMON SHARE:
|
|
|
|
|
|
|
|
|||||||
Basic—
|
|
|
|
|
|
|
|
|||||||
Net income
|
$
|
9.65
|
|
|
$
|
8.36
|
|
|
$
|
1.29
|
|
|
15
|
%
|
Diluted—
|
|
|
|
|
|
|
|
|||||||
Net income
|
$
|
9.55
|
|
|
$
|
8.28
|
|
|
$
|
1.27
|
|
|
15
|
%
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|||||||
Basic
|
19.1
|
|
|
20.1
|
|
|
(1.0
|
)
|
|
(5
|
)%
|
|||
Restricted stock
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
%
|
|||
Performance share units
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
%
|
|||
Diluted
|
19.3
|
|
|
20.3
|
|
|
(1.0
|
)
|
|
(5
|
)%
|
|
For the Twelve Months Ended December 31,
|
|
Increase
(Decrease) |
|
%
Change |
|||||||||
|
2019
|
|
2018
|
|
|
|||||||||
Unit sales
|
|
|
|
|
|
|
|
|||||||
New vehicle:
|
|
|
|
|
|
|
|
|||||||
Luxury
|
23,988
|
|
|
22,979
|
|
|
1,009
|
|
|
4
|
%
|
|||
Import
|
61,420
|
|
|
62,939
|
|
|
(1,519
|
)
|
|
(2
|
)%
|
|||
Domestic
|
19,835
|
|
|
19,357
|
|
|
478
|
|
|
2
|
%
|
|||
Total new vehicle
|
105,243
|
|
|
105,275
|
|
|
(32
|
)
|
|
—
|
%
|
|||
Used vehicle retail
|
88,602
|
|
|
82,377
|
|
|
6,225
|
|
|
8
|
%
|
|||
Used to new ratio
|
84.2
|
%
|
|
78.2
|
%
|
|
600 bps
|
|
|
|
||||
Average selling price
|
|
|
|
|
|
|
|
|||||||
New vehicle
|
$
|
36,708
|
|
|
$
|
35,989
|
|
|
$
|
719
|
|
|
2
|
%
|
Used vehicle retail
|
21,910
|
|
|
21,648
|
|
|
262
|
|
|
1
|
%
|
|||
Average gross profit per unit
|
|
|
|
|
|
|
|
|||||||
New vehicle:
|
|
|
|
|
|
|
|
|
|
|||||
Luxury
|
$
|
3,473
|
|
|
$
|
3,481
|
|
|
$
|
(8
|
)
|
|
—
|
%
|
Import
|
685
|
|
|
836
|
|
|
(151
|
)
|
|
(18
|
)%
|
|||
Domestic
|
1,719
|
|
|
1,684
|
|
|
35
|
|
|
2
|
%
|
|||
Total new vehicle
|
1,516
|
|
|
1,569
|
|
|
(53
|
)
|
|
(3
|
)%
|
|||
Used vehicle retail
|
1,502
|
|
|
1,551
|
|
|
(49
|
)
|
|
(3
|
)%
|
|||
Finance and insurance, net
|
1,630
|
|
|
1,558
|
|
|
72
|
|
|
5
|
%
|
|||
Front end yield (1)
|
3,140
|
|
|
3,119
|
|
|
21
|
|
|
1
|
%
|
|||
Gross margin
|
|
|
|
|
|
|
|
|||||||
New vehicle:
|
|
|
|
|
|
|
|
|||||||
Luxury
|
6.3
|
%
|
|
6.5
|
%
|
|
(20) bps
|
|
|
|
||||
Import
|
2.4
|
%
|
|
2.9
|
%
|
|
(50) bps
|
|
|
|
||||
Domestic
|
4.3
|
%
|
|
4.3
|
%
|
|
0 bps
|
|
|
|
||||
Total new vehicle
|
4.1
|
%
|
|
4.4
|
%
|
|
(30) bps
|
|
|
|
||||
Used vehicle retail
|
6.9
|
%
|
|
7.2
|
%
|
|
(30) bps
|
|
|
|
||||
Parts and service
|
62.2
|
%
|
|
62.8
|
%
|
|
(60) bps
|
|
|
|
||||
Total gross profit margin
|
16.2
|
%
|
|
16.0
|
%
|
|
20 bps
|
|
|
|
||||
SG&A metrics
|
|
|
|
|
|
|
|
|||||||
Rent expense
|
$
|
27.1
|
|
|
$
|
25.6
|
|
|
$
|
1.5
|
|
|
6
|
%
|
Total SG&A as a percentage of gross profit
|
68.4
|
%
|
|
68.5
|
%
|
|
(10) bps
|
|
|
|
||||
SG&A, excluding rent expense as a percentage of gross profit
|
66.1
|
%
|
|
66.2
|
%
|
|
(10) bps
|
|
|
|
||||
Operating metrics
|
|
|
|
|
|
|
|
|||||||
Income from operations as a percentage of revenue
|
4.5
|
%
|
|
4.5
|
%
|
|
—
|
|
|
|
||||
Income from operations as a percentage of gross profit
|
27.8
|
%
|
|
28.2
|
%
|
|
(40
|
) bps
|
|
|
||||
Adjusted income from operations as a percentage of revenue
|
4.6
|
%
|
|
4.6
|
%
|
|
—
|
|
|
|
||||
Adjusted income from operations as a percentage of gross profit
|
28.6
|
%
|
|
28.5
|
%
|
|
10 bps
|
|
|
|
||||
Revenue mix
|
|
|
|
|
|
|
|
|||||||
New vehicle
|
53.6
|
%
|
|
55.1
|
%
|
|
|
|
|
|||||
Used vehicle retail
|
26.9
|
%
|
|
25.9
|
%
|
|
|
|
|
|||||
Used vehicle wholesale
|
2.6
|
%
|
|
2.8
|
%
|
|
|
|
|
|||||
Parts and service
|
12.5
|
%
|
|
11.9
|
%
|
|
|
|
|
|||||
Finance and insurance
|
4.4
|
%
|
|
4.3
|
%
|
|
|
|
|
|||||
Total revenue
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|||||
Gross profit mix
|
|
|
|
|
|
|
|
|||||||
New vehicle
|
13.6
|
%
|
|
15.0
|
%
|
|
|
|
|
|||||
Used vehicle retail
|
11.5
|
%
|
|
11.5
|
%
|
|
|
|
|
|||||
Used vehicle wholesale
|
0.1
|
%
|
|
0.2
|
%
|
|
|
|
|
|||||
Parts and service
|
47.8
|
%
|
|
46.8
|
%
|
|
|
|
|
|||||
Finance and insurance
|
27.0
|
%
|
|
26.5
|
%
|
|
|
|
|
|||||
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 unit sales.
|
|
For the Twelve Months Ended December 31,
|
|
Increase
(Decrease) |
|
%
Change |
|||||||||
|
2019
|
|
2018
|
|
|
|||||||||
Revenue
|
|
|
|
|
|
|
|
|||||||
New vehicle:
|
|
|
|
|
|
|
|
|||||||
Luxury
|
$
|
1,314.4
|
|
|
$
|
1,235.3
|
|
|
$
|
79.1
|
|
|
6
|
%
|
Import
|
1,687.1
|
|
|
1,744.8
|
|
|
(57.7
|
)
|
|
(3
|
)%
|
|||
Domestic
|
681.0
|
|
|
763.2
|
|
|
(82.2
|
)
|
|
(11
|
)%
|
|||
Total new vehicle
|
3,682.5
|
|
|
3,743.3
|
|
|
(60.8
|
)
|
|
(2
|
)%
|
|||
Used Vehicle:
|
|
|
|
|
|
|
|
|||||||
Retail
|
1,848.9
|
|
|
1,755.7
|
|
|
93.2
|
|
|
5
|
%
|
|||
Wholesale
|
183.9
|
|
|
185.4
|
|
|
(1.5
|
)
|
|
(1
|
)%
|
|||
Total used vehicle
|
2,032.8
|
|
|
1,941.1
|
|
|
91.7
|
|
|
5
|
%
|
|||
Parts and service
|
867.0
|
|
|
810.9
|
|
|
56.1
|
|
|
7
|
%
|
|||
Finance and insurance, net
|
302.4
|
|
|
287.1
|
|
|
15.3
|
|
|
5
|
%
|
|||
Total revenue
|
$
|
6,884.7
|
|
|
$
|
6,782.4
|
|
|
$
|
102.3
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|||||||
Gross profit
|
|
|
|
|
|
|
|
|||||||
New vehicle:
|
|
|
|
|
|
|
|
|||||||
Luxury
|
$
|
83.4
|
|
|
$
|
80.0
|
|
|
$
|
3.4
|
|
|
4
|
%
|
Import
|
39.9
|
|
|
51.0
|
|
|
(11.1
|
)
|
|
(22
|
)%
|
|||
Domestic
|
27.9
|
|
|
32.6
|
|
|
(4.7
|
)
|
|
(14
|
)%
|
|||
Total new vehicle
|
151.2
|
|
|
163.6
|
|
|
(12.4
|
)
|
|
(8
|
)%
|
|||
Used Vehicle:
|
|
|
|
|
|
|
|
|||||||
Retail
|
126.0
|
|
|
126.1
|
|
|
(0.1
|
)
|
|
—
|
%
|
|||
Wholesale
|
1.1
|
|
|
2.0
|
|
|
(0.9
|
)
|
|
(45
|
)%
|
|||
Total used vehicle
|
127.1
|
|
|
128.1
|
|
|
(1.0
|
)
|
|
(1
|
)%
|
|||
Parts and service:
|
|
|
|
|
|
|
|
|||||||
Customer pay
|
305.4
|
|
|
288.6
|
|
|
16.8
|
|
|
6
|
%
|
|||
Warranty
|
85.4
|
|
|
76.1
|
|
|
9.3
|
|
|
12
|
%
|
|||
Wholesale parts
|
23.4
|
|
|
22.5
|
|
|
0.9
|
|
|
4
|
%
|
|||
Parts and service, excluding reconditioning and preparation
|
414.2
|
|
|
387.2
|
|
|
27.0
|
|
|
7
|
%
|
|||
Reconditioning and preparation
|
124.5
|
|
|
122.0
|
|
|
2.5
|
|
|
2
|
%
|
|||
Total parts and service
|
538.7
|
|
|
509.2
|
|
|
29.5
|
|
|
6
|
%
|
|||
Finance and insurance
|
302.4
|
|
|
287.1
|
|
|
15.3
|
|
|
5
|
%
|
|||
Total gross profit
|
$
|
1,119.4
|
|
|
$
|
1,088.0
|
|
|
$
|
31.4
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|||||||
SG&A expense
|
$
|
766.0
|
|
|
$
|
743.9
|
|
|
$
|
22.1
|
|
|
3
|
%
|
SG&A expense as a percentage of gross profit
|
68.4
|
%
|
|
68.4
|
%
|
|
0 bps
|
|
|
|
|
For the Twelve Months Ended December 31,
|
|
Increase
(Decrease) |
|
%
Change |
|||||||||
|
2019
|
|
2018
|
|
|
|||||||||
Unit sales
|
|
|
|
|
|
|
|
|||||||
New vehicle:
|
|
|
|
|
|
|
|
|||||||
Luxury
|
23,890
|
|
|
22,979
|
|
|
911
|
|
|
4
|
%
|
|||
Import
|
59,539
|
|
|
61,305
|
|
|
(1,766
|
)
|
|
(3
|
)%
|
|||
Domestic
|
16,817
|
|
|
19,357
|
|
|
(2,540
|
)
|
|
(13
|
)%
|
|||
Total new vehicle
|
100,246
|
|
|
103,641
|
|
|
(3,395
|
)
|
|
(3
|
)%
|
|||
Used vehicle retail
|
83,822
|
|
|
80,963
|
|
|
2,859
|
|
|
4
|
%
|
|||
Used to new ratio
|
83.6
|
%
|
|
78.1
|
%
|
|
550 bps
|
|
|
|
||||
|
|
|
|
|
|
|
|
|||||||
Average selling price
|
|
|
|
|
|
|
|
|||||||
New vehicle
|
$
|
36,735
|
|
|
$
|
36,118
|
|
|
$
|
617
|
|
|
2
|
%
|
Used vehicle retail
|
22,057
|
|
|
21,685
|
|
|
372
|
|
|
2
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average gross profit per unit
|
|
|
|
|
|
|
|
|||||||
New vehicle:
|
|
|
|
|
|
|
|
|
|
|||||
Luxury
|
$
|
3,491
|
|
|
$
|
3,481
|
|
|
$
|
10
|
|
|
—
|
%
|
Import
|
670
|
|
|
832
|
|
|
(162
|
)
|
|
(19
|
)%
|
|||
Domestic
|
1,659
|
|
|
1,684
|
|
|
(25
|
)
|
|
(1
|
)%
|
|||
Total new vehicle
|
1,508
|
|
|
1,579
|
|
|
(71
|
)
|
|
(4
|
)%
|
|||
Used vehicle retail
|
1,503
|
|
|
1,558
|
|
|
(55
|
)
|
|
(4
|
)%
|
|||
Finance and insurance, net
|
1,643
|
|
|
1,555
|
|
|
88
|
|
|
6
|
%
|
|||
Front end yield (1)
|
3,149
|
|
|
3,125
|
|
|
24
|
|
|
1
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Gross margin
|
|
|
|
|
|
|
|
|||||||
New vehicle:
|
|
|
|
|
|
|
|
|||||||
Luxury
|
6.3
|
%
|
|
6.5
|
%
|
|
(20) bps
|
|
|
|
||||
Import
|
2.4
|
%
|
|
2.9
|
%
|
|
(50) bps
|
|
|
|
||||
Domestic
|
4.1
|
%
|
|
4.3
|
%
|
|
(20) bps
|
|
|
|
||||
Total new vehicle
|
4.1
|
%
|
|
4.4
|
%
|
|
(30) bps
|
|
|
|
||||
Used vehicle retail
|
6.8
|
%
|
|
7.2
|
%
|
|
(40) bps
|
|
|
|
||||
Parts and service:
|
|
|
|
|
|
|
|
|||||||
Parts and service, excluding reconditioning and preparation
|
47.8
|
%
|
|
47.7
|
%
|
|
10 bps
|
|
|
|
||||
Parts and service, including reconditioning and preparation
|
62.1
|
%
|
|
62.8
|
%
|
|
(70) bps
|
|
|
|
||||
Total gross profit margin
|
16.2
|
%
|
|
16.0
|
%
|
|
20 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.
|
|
December 31, 2019
|
|
December 31, 2018
|
|
Increase
(Decrease)
|
|
% Change
|
|||||||
SELECTED BALANCE SHEET DATA
|
|
|
|
|
|
|
|
|||||||
Cash and cash equivalents
|
$
|
3.5
|
|
|
$
|
8.3
|
|
|
$
|
(4.8
|
)
|
|
(58
|
)%
|
New vehicle inventory
|
802.6
|
|
(a)
|
867.2
|
|
|
(64.6
|
)
|
|
(7
|
)%
|
|||
Used vehicle inventory
|
140.1
|
|
(b)
|
158.9
|
|
|
(18.8
|
)
|
|
(12
|
)%
|
|||
Parts inventory
|
42.3
|
|
(c)
|
41.5
|
|
|
0.8
|
|
|
2
|
%
|
|||
Total current assets
|
1,602.6
|
|
|
1,553.0
|
|
|
49.6
|
|
|
3
|
%
|
|||
Floor plan notes payable
|
788.0
|
|
(d)
|
966.1
|
|
|
(178.1
|
)
|
|
(18
|
)%
|
|||
Total current liabilities
|
1,247.0
|
|
|
1,303.3
|
|
|
(56.3
|
)
|
|
(4
|
)%
|
|||
|
|
|
|
|
|
|
|
|||||||
CAPITALIZATION:
|
|
|
|
|
|
|
|
|||||||
Long-term debt (including current portion)
|
$
|
939.4
|
|
(e)
|
$
|
905.3
|
|
|
$
|
34.1
|
|
|
4
|
%
|
Shareholders' equity
|
646.3
|
|
|
473.2
|
|
|
173.1
|
|
|
37
|
%
|
|||
Total
|
$
|
1,585.7
|
|
|
$
|
1,378.5
|
|
|
$
|
207.2
|
|
|
15
|
%
|
|
December 31, 2019
|
|
December 31, 2018
|
||
DAYS SUPPLY
|
|
|
|
||
New vehicle inventory
|
66
|
|
|
67
|
|
Used vehicle inventory
|
29
|
|
|
34
|
|
|
For the Twelve Months Ended
|
||||||
|
December 31, 2019
|
|
September 30, 2019
|
||||
|
(Dollars in millions)
|
||||||
Adjusted leverage ratio:
|
|
|
|
||||
Long-term debt (including current portion and HFS)
|
$
|
967.5
|
|
|
$
|
905.9
|
|
|
|
|
|
||||
Calculation of earnings before interest, taxes, depreciation and amortization ("EBITDA"):
|
|
|
|
||||
Net Income
|
$
|
184.4
|
|
|
$
|
181.2
|
|
|
|
|
|
||||
Add:
|
|
|
|
||||
Depreciation and amortization
|
36.2
|
|
|
35.2
|
|
||
Income tax expense
|
59.5
|
|
|
59.8
|
|
||
Swap and other interest expense
|
54.9
|
|
|
54.8
|
|
||
Earnings before interest, taxes, depreciation and amortization ("EBITDA")
|
$
|
335.0
|
|
|
$
|
331.0
|
|
|
|
|
|
||||
Non-core items - expense (income):
|
|
|
|
||||
Gain on divestiture
|
$
|
(11.7
|
)
|
|
$
|
(11.7
|
)
|
Legal settlements
|
(0.6
|
)
|
|
$
|
—
|
|
|
Gain on sale of real estate
|
(0.3
|
)
|
|
(0.3
|
)
|
||
Franchise rights impairment
|
7.1
|
|
|
3.7
|
|
||
Real estate-related charges
|
0.6
|
|
|
—
|
|
||
Fixed assets write-off
|
2.4
|
|
|
2.4
|
|
||
Total non-core items
|
(2.5
|
)
|
|
(5.9
|
)
|
||
|
|
|
|
||||
Adjusted EBITDA
|
$
|
332.5
|
|
|
$
|
325.1
|
|
|
|
|
|
||||
Adjusted leverage ratio
|
2.9
|
|
|
2.8
|
|
|
For the Three Months Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(In millions, except per share data)
|
||||||
Adjusted income from operations:
|
|
|
|
||||
Income from operations
|
$
|
79.1
|
|
|
$
|
77.3
|
|
Franchise rights impairment
|
7.1
|
|
|
3.7
|
|
||
Legal settlements
|
(0.6
|
)
|
|
—
|
|
||
Real estate-related charges
|
0.6
|
|
|
—
|
|
||
Adjusted income from operations
|
$
|
86.2
|
|
|
$
|
81.0
|
|
|
|
|
|
||||
|
|
|
|
||||
Adjusted net income:
|
|
|
|
||||
Net income
|
$
|
43.6
|
|
|
$
|
40.4
|
|
|
|
|
|
||||
Non-core items - (income) expense:
|
|
|
|
||||
Franchise rights impairment
|
7.1
|
|
|
3.7
|
|
||
Legal settlements
|
(0.6
|
)
|
|
—
|
|
||
Real estate-related charges
|
0.6
|
|
|
—
|
|
||
Income tax effect on non-core items above
|
(1.8
|
)
|
|
(0.9
|
)
|
||
Total non-core items
|
5.3
|
|
|
2.8
|
|
||
Adjusted net income
|
$
|
48.9
|
|
|
$
|
43.2
|
|
|
|
|
|
||||
Adjusted diluted earnings per share (EPS):
|
|
|
|
||||
Diluted EPS
|
$
|
2.26
|
|
|
$
|
2.06
|
|
|
|
|
|
||||
Total non-core items
|
0.27
|
|
|
0.14
|
|
||
Adjusted diluted EPS
|
$
|
2.53
|
|
|
$
|
2.20
|
|
|
|
|
|
||||
Weighted average common shares outstanding - diluted
|
19.3
|
|
19.6
|
|
For the Twelve Months Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(In millions, except per share data)
|
||||||
Adjusted income from operations:
|
|
|
|
||||
Income from operations
|
$
|
325.0
|
|
|
$
|
310.9
|
|
Franchise rights impairment
|
7.1
|
|
|
3.7
|
|
||
Legal settlements
|
(0.6
|
)
|
|
(0.7
|
)
|
||
Gain on sale of real estate
|
(0.3
|
)
|
|
—
|
|
||
Real estate-related charges
|
0.6
|
|
|
—
|
|
||
Fixed assets write-off
|
2.4
|
|
|
—
|
|
||
Adjusted income from operations
|
$
|
334.2
|
|
|
$
|
313.9
|
|
|
|
|
|
||||
Adjusted net income:
|
|
|
|
||||
Net income
|
$
|
184.4
|
|
|
$
|
168.0
|
|
|
|
|
|
||||
Non-core items - (income) expense:
|
|
|
|
||||
Franchise rights impairment
|
7.1
|
|
|
3.7
|
|
||
Gain on divestiture
|
(11.7
|
)
|
|
—
|
|
||
Gain on sale of real estate
|
(0.3
|
)
|
|
—
|
|
||
Fixed assets write-off
|
2.4
|
|
|
—
|
|
||
Real estate-related charges
|
0.6
|
|
|
—
|
|
||
Legal settlements
|
(0.6
|
)
|
|
(0.7
|
)
|
||
Income tax effect on non-core items above
|
0.6
|
|
|
(0.8
|
)
|
||
2017 Tax Act Adjustment
|
—
|
|
|
0.6
|
|
||
Total non-core items
|
(1.9
|
)
|
|
2.8
|
|
||
Adjusted net income
|
$
|
182.5
|
|
|
$
|
170.8
|
|
|
|
|
|
||||
Adjusted diluted earnings per share (EPS):
|
|
|
|
||||
Diluted EPS
|
$
|
9.55
|
|
|
$
|
8.28
|
|
|
|
|
|
||||
Total non-core items
|
(0.09
|
)
|
|
0.13
|
|
||
Adjusted diluted EPS
|
$
|
9.46
|
|
|
$
|
8.41
|
|
|
|
|
|
||||
Weighted average common shares outstanding - diluted
|
19.3
|
|
20.3
|