☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 01-0609375 | ||||||||||||||||
(State or other jurisdiction of
incorporation or organization) |
(I.R.S. Employer
Identification No.) |
||||||||||||||||
2905 Premiere Parkway NW, | Suite 300 | ||||||||||||||||
Duluth, | Georgia | 30097 | |||||||||||||||
(Address of principal executive offices) | (Zip Code) |
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 |
Large Accelerated Filer | ☒ | Accelerated Filer | ☐ | |||||||||||
Non-Accelerated Filer | ☐ | Smaller Reporting Company | ☐ | |||||||||||
Emerging Growth Company | ☐ |
Page | ||||||||
PART I | ||||||||
PART II | ||||||||
PART III | ||||||||
PART IV | ||||||||
Dealership Group Brand Name | Market | Franchise | ||||||||||||
Coggin Automotive Group | Fort Pierce, FL | Acura, BMW, Honda, Mercedes-Benz | ||||||||||||
Jacksonville, FL | Buick, Chevrolet, Ford, GMC, Honda(a), Nissan(a), Toyota | |||||||||||||
Orlando, FL | Ford, Honda(a), Hyundai | |||||||||||||
Courtesy Autogroup | Tampa, FL | Chrysler, Dodge, Genesis, Honda, Hyundai, Infiniti, Jeep, Kia, Mercedes-Benz, Nissan, Sprinter, Toyota | ||||||||||||
Crown Automotive Company | Durham, NC | Honda | ||||||||||||
Fayetteville, NC | Dodge, Ford | |||||||||||||
Greensboro, NC | Acura, BMW, Chrysler, Dodge, Honda, Jeep, Nissan, Volvo | |||||||||||||
Charlottesville, VA | BMW | |||||||||||||
Richmond, VA | Acura, BMW(a), MINI | |||||||||||||
David McDavid Auto Group | Austin, TX | Acura | ||||||||||||
Dallas/Fort Worth, TX | Acura, Ford, Honda(a), Lincoln | |||||||||||||
Hare & Bill Estes Automotive Groups | Indianapolis, IN | Buick, Chevrolet(b), Chrysler, Dodge, Ford, GMC, Honda, Isuzu, Jeep, Toyota | ||||||||||||
Greenville Automotive Group | Greenville, SC | Jaguar, Land Rover, Nissan, Porsche, Toyota, Volvo | ||||||||||||
Mike Shaw | Denver, CO | Subaru, Chrysler, Dodge, Jeep | ||||||||||||
Nalley Automotive Group | Atlanta, GA | Acura, Audi, Bentley, BMW, Chevrolet, Honda, Hyundai, Infiniti(a), Kia, Lexus(a), Nissan, Toyota(b), Volkswagen | ||||||||||||
Park Place Automotive | Dallas/Fort Worth, TX | Jaguar, Lexus(a), Land Rover, Mercedes-Benz(b), Porsche, Volvo, Sprinter(b) | ||||||||||||
Plaza Motor Company | St. Louis, MO | Audi, BMW, Infiniti, Jaguar, Land Rover, Lexus, Mercedes-Benz(a), Sprinter(a) |
Class/Franchise |
Number of
Franchises Owned |
% of New
Vehicle Revenues |
||||||||||||
Luxury | ||||||||||||||
Mercedes-Benz | 7 | 10 | % | |||||||||||
Lexus | 5 | 9 | ||||||||||||
BMW | 7 | 6 | ||||||||||||
Acura | 6 | 4 | ||||||||||||
Infiniti | 4 | 2 | ||||||||||||
Audi | 2 | 2 | ||||||||||||
Volvo | 3 | 1 | ||||||||||||
Land Rover | 3 | 2 | ||||||||||||
Jaguar | 3 | * | ||||||||||||
Porsche | 2 | 1 | ||||||||||||
Lincoln | 1 | 1 | ||||||||||||
Bentley | 1 | 1 | ||||||||||||
Genesis | 1 | * | ||||||||||||
Total Luxury | 45 | 39 | % | |||||||||||
Import | ||||||||||||||
Honda | 12 | 16 | % | |||||||||||
Toyota | 7 | 12 | ||||||||||||
Nissan | 6 | 5 | ||||||||||||
Hyundai | 3 | 2 | ||||||||||||
Kia | 2 | 2 | ||||||||||||
Subaru | 1 | 2 | ||||||||||||
Volkswagen | 1 | 1 | ||||||||||||
Sprinter | 6 | 1 | ||||||||||||
MINI | 1 | * | ||||||||||||
Isuzu | 1 | * | ||||||||||||
Total Import | 40 | 41 | % | |||||||||||
Domestic | ||||||||||||||
Ford | 5 | 8 | % | |||||||||||
Chevrolet | 5 | 5 | ||||||||||||
Dodge | 5 | 4 | ||||||||||||
Jeep | 4 | 2 | ||||||||||||
GMC | 2 | 1 | ||||||||||||
Chrysler | 4 | * | ||||||||||||
Buick | 2 | * | ||||||||||||
Total Domestic | 27 | 20 | % | |||||||||||
Total Franchises | 112 | 100 | % |
Manufacturer (Vehicle Brands): |
% of Total
New Vehicle Revenues |
|||||||
Toyota Motor Sales, U.S.A., Inc. (Toyota and Lexus)
|
21 | % | ||||||
American Honda Motor Co., Inc. (Honda and Acura)
|
20 | % | ||||||
Mercedes-Benz USA, LLC (Mercedes-Benz and Sprinter)
|
10 | % | ||||||
Ford Motor Company (Ford and Lincoln)
|
9 | % | ||||||
Nissan North America, Inc. (Nissan and Infiniti)
|
7 | % | ||||||
BMW of North America, LLC (BMW and Mini)
|
6 | % |
Dealerships | Collision Repair Centers | ||||||||||||||||||||||||||||
Dealership Group Brand Name: | Owned | Leased | Owned | Leased | |||||||||||||||||||||||||
Coggin Automotive Group | 12 | 4 | (a) | 5 | 2 | ||||||||||||||||||||||||
Courtesy Autogroup | 5 | 3 | 2 | — | |||||||||||||||||||||||||
Crown Automotive Company | 10 | 4 | (b) | 2 | — | ||||||||||||||||||||||||
David McDavid Auto Group | 5 | 1 | 2 | 2 | |||||||||||||||||||||||||
Hare & Bill Estes Automotive Groups | 8 | — | 1 | — | |||||||||||||||||||||||||
Greenville Automotive Group | 4 | 1 | (b) | 1 | — | ||||||||||||||||||||||||
Mike Shaw | 2 | — | — | — | |||||||||||||||||||||||||
Nalley Automotive Group | 16 | 1 | 4 | 1 | |||||||||||||||||||||||||
Park Place Automotive | — | 8 | (b) | — | 2 | ||||||||||||||||||||||||
Plaza Motor Company | 6 | 1 | (b) | — | 1 | ||||||||||||||||||||||||
Total | 68 | 23 | 17 | 8 |
For the Year Ended December 31, | ||||||||||||||||||||||||||||||||
Income Statement Data: | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||
(in millions, except per share data) | ||||||||||||||||||||||||||||||||
REVENUE: | ||||||||||||||||||||||||||||||||
New vehicle | $ | 3,767.4 | $ | 3,863.3 | $ | 3,788.7 | $ | 3,561.1 | $ | 3,611.9 | ||||||||||||||||||||||
Used vehicle | 2,169.5 | 2,131.6 | 1,972.4 | 1,834.1 | 1,876.4 | |||||||||||||||||||||||||||
Parts and service | 889.8 | 899.4 | 821.0 | 786.1 | 778.5 | |||||||||||||||||||||||||||
Finance and insurance, net | 305.1 | 316.0 | 292.3 | 275.2 | 261.0 | |||||||||||||||||||||||||||
TOTAL REVENUE | 7,131.8 | 7,210.3 | 6,874.4 | 6,456.5 | 6,527.8 | |||||||||||||||||||||||||||
COST OF SALES | 5,908.4 | 6,041.4 | 5,771.4 | 5,400.6 | 5,469.1 | |||||||||||||||||||||||||||
GROSS PROFIT | 1,223.4 | 1,168.9 | 1,103.0 | 1,055.9 | 1,058.7 | |||||||||||||||||||||||||||
OPERATING EXPENSES: | ||||||||||||||||||||||||||||||||
Selling, general, and administrative | 781.9 | 799.8 | 755.8 | 729.7 | 732.5 | |||||||||||||||||||||||||||
Depreciation and amortization | 38.5 | 36.2 | 33.7 | 32.1 | 30.7 | |||||||||||||||||||||||||||
Franchise rights impairment | 23.0 | 7.1 | 3.7 | 5.1 | — | |||||||||||||||||||||||||||
Other operating expense (income), net | 9.2 | 0.8 | (1.1) | 1.3 | (2.3) | |||||||||||||||||||||||||||
INCOME FROM OPERATIONS | 370.8 | 325.0 | 310.9 | 287.7 | 297.8 | |||||||||||||||||||||||||||
OTHER EXPENSES (INCOME): | ||||||||||||||||||||||||||||||||
Floor plan interest expense | 17.7 | 37.9 | 32.5 | 22.7 | 19.3 | |||||||||||||||||||||||||||
Other interest expense, net | 56.7 | 54.9 | 53.1 | 53.9 | 53.1 | |||||||||||||||||||||||||||
Swap interest expense | — | — | 0.5 | 2.0 | 3.1 | |||||||||||||||||||||||||||
Loss on extinguishment of long-term debt, net | 20.6 | — | — | — | — | |||||||||||||||||||||||||||
Gain on dealership divestitures, net | (62.3) | (11.7) | — | — | (45.5) | |||||||||||||||||||||||||||
Total other expenses, net | 32.7 | 81.1 | 86.1 | 78.6 | 30.0 | |||||||||||||||||||||||||||
INCOME BEFORE INCOME TAXES | 338.1 | 243.9 | 224.8 | 209.1 | 267.8 | |||||||||||||||||||||||||||
Income tax expense | 83.7 | 59.5 | 56.8 | 70.0 | 100.6 | |||||||||||||||||||||||||||
NET INCOME | $ | 254.4 | $ | 184.4 | $ | 168.0 | $ | 139.1 | $ | 167.2 | ||||||||||||||||||||||
EARNINGS PER COMMON SHARE: | ||||||||||||||||||||||||||||||||
Basic | $ | 13.25 | $ | 9.65 | $ | 8.36 | $ | 6.69 | $ | 7.43 | ||||||||||||||||||||||
Diluted | $ | 13.18 | $ | 9.55 | $ | 8.28 | $ | 6.62 | $ | 7.40 |
As of December 31, | ||||||||||||||||||||||||||||||||
Balance Sheet Data: | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
Working capital | $ | 182.3 | $ | 355.6 | $ | 249.7 | $ | 243.9 | $ | 227.5 | ||||||||||||||||||||||
Inventories (a) | 875.2 | 1,052.7 | 1,067.6 | 826.0 | 894.9 | |||||||||||||||||||||||||||
Total assets | 3,676.3 | 2,911.3 | 2,695.4 | 2,356.7 | 2,336.1 | |||||||||||||||||||||||||||
Floor plan notes payable (b) | 702.2 | 850.8 | 966.1 | 732.1 | 781.8 | |||||||||||||||||||||||||||
Total debt (b) | 1,210.7 | 967.5 | 905.3 | 875.5 | 926.7 | |||||||||||||||||||||||||||
Total shareholders' equity | $ | 905.5 | $ | 646.3 | $ | 473.2 | $ | 394.2 | $ | 279.7 |
For the Year Ended December 31, |
Increase
(Decrease) |
%
Change |
|||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
(Dollars in millions, except per share data) | |||||||||||||||||||||||
REVENUE: | |||||||||||||||||||||||
New vehicle | $ | 3,767.4 | $ | 3,863.3 | $ | (95.9) | (2) | % | |||||||||||||||
Used vehicle | 2,169.5 | 2,131.6 | 37.9 | 2 | % | ||||||||||||||||||
Parts and service | 889.8 | 899.4 | (9.6) | (1) | % | ||||||||||||||||||
Finance and insurance, net | 305.1 | 316.0 | (10.9) | (3) | % | ||||||||||||||||||
TOTAL REVENUE | 7,131.8 | 7,210.3 | (78.5) | (1) | % | ||||||||||||||||||
GROSS PROFIT: | |||||||||||||||||||||||
New vehicle | 218.5 | 159.5 | 59.0 | 37 | % | ||||||||||||||||||
Used vehicle | 156.6 | 134.1 | 22.5 | 17 | % | ||||||||||||||||||
Parts and service | 543.2 | 559.3 | (16.1) | (3) | % | ||||||||||||||||||
Finance and insurance, net | 305.1 | 316.0 | (10.9) | (3) | % | ||||||||||||||||||
TOTAL GROSS PROFIT | 1,223.4 | 1,168.9 | 54.5 | 5 | % | ||||||||||||||||||
OPERATING EXPENSES: | |||||||||||||||||||||||
Selling, general, and administrative | 781.9 | 799.8 | (17.9) | (2) | % | ||||||||||||||||||
Depreciation and amortization | 38.5 | 36.2 | 2.3 | 6 | % | ||||||||||||||||||
Franchise rights impairment | 23.0 | 7.1 | 15.9 | NM | |||||||||||||||||||
Other operating expenses, net | 9.2 | 0.8 | 8.4 | NM | |||||||||||||||||||
INCOME FROM OPERATIONS | 370.8 | 325.0 | 45.8 | 14 | % | ||||||||||||||||||
OTHER EXPENSES (INCOME): | |||||||||||||||||||||||
Floor plan interest expense | 17.7 | 37.9 | (20.2) | (53) | % | ||||||||||||||||||
Other interest expense, net | 56.7 | 54.9 | 1.8 | 3 | % | ||||||||||||||||||
Loss on extinguishment of long-term debt, net | 20.6 | — | 20.6 | — | % | ||||||||||||||||||
Gain on dealership divestitures, net | (62.3) | (11.7) | (50.6) | NM | |||||||||||||||||||
Total other expenses, net | 32.7 | 81.1 | (48.4) | (60) | % | ||||||||||||||||||
INCOME BEFORE INCOME TAXES | 338.1 | 243.9 | 94.2 | 39 | % | ||||||||||||||||||
Income tax expense | 83.7 | 59.5 | 24.2 | 41 | % | ||||||||||||||||||
NET INCOME | $ | 254.4 | $ | 184.4 | $ | 70.0 | 38 | % | |||||||||||||||
Net income per common share—Diluted | $ | 13.18 | $ | 9.55 | $ | 3.63 | 38 | % |
For the Year Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
REVENUE MIX PERCENTAGES: | |||||||||||
New vehicles | 52.8 | % | 53.6 | % | |||||||
Used retail vehicles | 27.0 | % | 26.9 | % | |||||||
Used vehicle wholesale | 3.4 | % | 2.6 | % | |||||||
Parts and service | 12.5 | % | 12.5 | % | |||||||
Finance and insurance, net | 4.3 | % | 4.4 | % | |||||||
Total revenue | 100.0 | % | 100.0 | % | |||||||
GROSS PROFIT MIX PERCENTAGES: | |||||||||||
New vehicles | 17.9 | % | 13.6 | % | |||||||
Used retail vehicles | 11.9 | % | 11.5 | % | |||||||
Used vehicle wholesale | 0.9 | % | 0.1 | % | |||||||
Parts and service | 44.4 | % | 47.8 | % | |||||||
Finance and insurance, net | 24.9 | % | 27.0 | % | |||||||
Total gross profit | 100.0 | % | 100.0 | % | |||||||
GROSS PROFIT MARGIN | 17.2 | % | 16.2 | % | |||||||
SG&A EXPENSES AS A PERCENTAGE OF GROSS PROFIT | 63.9 | % | 68.4 | % |
For the Year Ended December 31, |
Increase
(Decrease) |
%
Change |
|||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
(Dollars in millions, except for per vehicle data) | |||||||||||||||||||||||
As Reported: | |||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Luxury | $ | 1,450.1 | $ | 1,318.7 | $ | 131.4 | 10 | % | |||||||||||||||
Import | 1,550.6 | 1,742.4 | (191.8) | (11) | % | ||||||||||||||||||
Domestic | 766.7 | 802.2 | (35.5) | (4) | % | ||||||||||||||||||
Total new vehicle revenue | $ | 3,767.4 | $ | 3,863.3 | $ | (95.9) | (2) | % | |||||||||||||||
Gross profit: | |||||||||||||||||||||||
Luxury | $ | 113.7 | $ | 83.3 | $ | 30.4 | 36 | % | |||||||||||||||
Import | 59.7 | 42.1 | 17.6 | 42 | % | ||||||||||||||||||
Domestic | 45.1 | 34.1 | 11.0 | 32 | % | ||||||||||||||||||
Total new vehicle gross profit | $ | 218.5 | $ | 159.5 | $ | 59.0 | 37 | % | |||||||||||||||
New vehicle units: | |||||||||||||||||||||||
Luxury | 25,259 | 23,988 | 1,271 | 5 | % | ||||||||||||||||||
Import | 52,201 | 61,420 | (9,219) | (15) | % | ||||||||||||||||||
Domestic | 17,705 | 19,835 | (2,130) | (11) | % | ||||||||||||||||||
Total new vehicle units | 95,165 | 105,243 | (10,078) | (10) | % | ||||||||||||||||||
Same Store: | |||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Luxury | $ | 1,126.3 | $ | 1,271.2 | $ | (144.9) | (11) | % | |||||||||||||||
Import | 1,472.7 | 1,602.5 | (129.8) | (8) | % | ||||||||||||||||||
Domestic | 648.1 | 690.5 | (42.4) | (6) | % | ||||||||||||||||||
Total new vehicle revenue | $ | 3,247.1 | $ | 3,564.2 | $ | (317.1) | (9) | % | |||||||||||||||
Gross profit: | |||||||||||||||||||||||
Luxury | $ | 81.8 | $ | 80.1 | $ | 1.7 | 2 | % | |||||||||||||||
Import | 56.3 | 39.1 | 17.2 | 44 | % | ||||||||||||||||||
Domestic | 37.8 | 28.8 | 9.0 | 31 | % | ||||||||||||||||||
Total new vehicle gross profit | $ | 175.9 | $ | 148.0 | $ | 27.9 | 19 | % | |||||||||||||||
New vehicle units: | |||||||||||||||||||||||
Luxury | 20,009 | 23,085 | (3,076) | (13) | % | ||||||||||||||||||
Import | 49,744 | 56,707 | (6,963) | (12) | % | ||||||||||||||||||
Domestic | 15,156 | 17,205 | (2,049) | (12) | % | ||||||||||||||||||
Total new vehicle units | 84,909 | 96,997 | (12,088) | (12) | % |
For the Year Ended December 31, |
Increase
(Decrease) |
%
Change |
|||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
As Reported: | |||||||||||||||||||||||
Revenue per new vehicle sold | $ | 39,588 | $ | 36,708 | $ | 2,880 | 8 | % | |||||||||||||||
Gross profit per new vehicle sold | $ | 2,296 | $ | 1,516 | $ | 780 | 51 | % | |||||||||||||||
New vehicle gross margin | 5.8 | % | 4.1 | % | 1.7 | % | |||||||||||||||||
Luxury: | |||||||||||||||||||||||
Gross profit per new vehicle sold | $ | 4,501 | $ | 3,473 | $ | 1,028 | 30 | % | |||||||||||||||
New vehicle gross margin | 7.8 | % | 6.3 | % | 1.5 | % | |||||||||||||||||
Import: | |||||||||||||||||||||||
Gross profit per new vehicle sold | $ | 1,144 | $ | 685 | $ | 459 | 67 | % | |||||||||||||||
New vehicle gross margin | 3.9 | % | 2.4 | % | 1.5 | % | |||||||||||||||||
Domestic: | |||||||||||||||||||||||
Gross profit per new vehicle sold | $ | 2,547 | $ | 1,719 | $ | 828 | 48 | % | |||||||||||||||
New vehicle gross margin | 5.9 | % | 4.3 | % | 1.6 | % | |||||||||||||||||
Same Store: | |||||||||||||||||||||||
Revenue per new vehicle sold | $ | 38,242 | $ | 36,745 | $ | 1,497 | 4 | % | |||||||||||||||
Gross profit per new vehicle sold | $ | 2,072 | $ | 1,526 | $ | 546 | 36 | % | |||||||||||||||
New vehicle gross margin | 5.4 | % | 4.2 | % | 1.2 | % | |||||||||||||||||
Luxury: | |||||||||||||||||||||||
Gross profit per new vehicle sold | $ | 4,088 | $ | 3,470 | $ | 618 | 18 | % | |||||||||||||||
New vehicle gross margin | 7.3 | % | 6.3 | % | 1.0 | % | |||||||||||||||||
Import: | |||||||||||||||||||||||
Gross profit per new vehicle sold | $ | 1,132 | $ | 690 | $ | 442 | 64 | % | |||||||||||||||
New vehicle gross margin | 3.8 | % | 2.4 | % | 1.4 | % | |||||||||||||||||
Domestic: | |||||||||||||||||||||||
Gross profit per new vehicle sold | $ | 2,494 | $ | 1,674 | $ | 820 | 49 | % | |||||||||||||||
New vehicle gross margin | 5.8 | % | 4.2 | % | 1.6 | % |
For the Year Ended December 31, |
Increase
(Decrease) |
%
Change |
|||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
(Dollars in millions, except for per vehicle data) | |||||||||||||||||||||||
As Reported: | |||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Used vehicle retail revenues | $ | 1,930.0 | $ | 1,941.3 | $ | (11.3) | (1) | % | |||||||||||||||
Used vehicle wholesale revenues | 239.5 | 190.3 | 49.2 | 26 | % | ||||||||||||||||||
Used vehicle revenue | $ | 2,169.5 | $ | 2,131.6 | $ | 37.9 | 2 | % | |||||||||||||||
Gross profit: | |||||||||||||||||||||||
Used vehicle retail gross profit | $ | 145.3 | $ | 133.1 | $ | 12.2 | 9 | % | |||||||||||||||
Used vehicle wholesale gross profit | 11.3 | 1.0 | 10.3 | NM | |||||||||||||||||||
Used vehicle gross profit | $ | 156.6 | $ | 134.1 | $ | 22.5 | 17 | % | |||||||||||||||
Used vehicle retail units: | |||||||||||||||||||||||
Used vehicle retail units | 80,537 | 88,602 | (8,065) | (9) | % | ||||||||||||||||||
Same Store: | |||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Used vehicle retail revenues | $ | 1,685.8 | $ | 1,772.4 | $ | (86.6) | (5) | % | |||||||||||||||
Used vehicle wholesale revenues | 190.7 | 175.5 | 15.2 | 9 | % | ||||||||||||||||||
Used vehicle revenue | $ | 1,876.5 | $ | 1,947.9 | $ | (71.4) | (4) | % | |||||||||||||||
Gross profit: | |||||||||||||||||||||||
Used vehicle retail gross profit | $ | 127.4 | $ | 124.1 | $ | 3.3 | 3 | % | |||||||||||||||
Used vehicle wholesale gross profit | 9.1 | 1.6 | 7.5 | NM | |||||||||||||||||||
Used vehicle gross profit | $ | 136.5 | $ | 125.7 | $ | 10.8 | 9 | % | |||||||||||||||
Used vehicle retail units: | |||||||||||||||||||||||
Used vehicle retail units | 72,468 | 80,717 | (8,249) | (10) | % |
For the Year Ended December 31, |
Increase
(Decrease) |
%
Change |
|||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
As Reported: | |||||||||||||||||||||||
Revenue per used vehicle retailed | $ | 23,964 | $ | 21,910 | $ | 2,054 | 9 | % | |||||||||||||||
Gross profit per used vehicle retailed | $ | 1,804 | $ | 1,502 | $ | 302 | 20 | % | |||||||||||||||
Used vehicle retail gross margin | 7.5 | % | 6.9 | % | 0.6 | % | |||||||||||||||||
Same Store: | |||||||||||||||||||||||
Revenue per used vehicle retailed | $ | 23,263 | $ | 21,958 | $ | 1,305 | 6 | % | |||||||||||||||
Gross profit per used vehicle retailed | $ | 1,758 | $ | 1,537 | $ | 221 | 14 | % | |||||||||||||||
Used vehicle retail gross margin | 7.6 | % | 7.0 | % | 0.6 | % |
For the Year Ended December 31, |
Increase
(Decrease) |
%
Change |
|||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
As Reported: | |||||||||||||||||||||||
Parts and service revenue | $ | 889.8 | $ | 899.4 | $ | (9.6) | (1) | % | |||||||||||||||
Parts and service gross profit: | |||||||||||||||||||||||
Customer pay | $ | 310.6 | $ | 317.3 | $ | (6.7) | (2) | % | |||||||||||||||
Warranty | 92.8 | 88.8 | 4.0 | 5 | % | ||||||||||||||||||
Wholesale parts | 22.1 | 23.8 | (1.7) | (7) | % | ||||||||||||||||||
Parts and service gross profit, excluding reconditioning and preparation | $ | 425.5 | $ | 429.9 | $ | (4.4) | (1) | % | |||||||||||||||
Parts and service gross margin, excluding reconditioning and preparation | 47.8 | % | 47.8 | % | — | % | |||||||||||||||||
Reconditioning and preparation * | 117.7 | 129.4 | (11.7) | (9) | % | ||||||||||||||||||
Total parts and service gross profit | $ | 543.2 | $ | 559.3 | $ | (16.1) | (3) | % | |||||||||||||||
Same Store: | |||||||||||||||||||||||
Parts and service revenue | $ | 775.4 | $ | 840.0 | $ | (64.6) | (8) | % | |||||||||||||||
Parts and service gross profit: | |||||||||||||||||||||||
Customer pay | $ | 269.5 | $ | 298.7 | $ | (29.2) | (10) | % | |||||||||||||||
Warranty | 76.7 | 83.4 | (6.7) | (8) | % | ||||||||||||||||||
Wholesale parts | 19.7 | 21.8 | (2.1) | (10) | % | ||||||||||||||||||
Parts and service gross profit, excluding reconditioning and preparation | $ | 365.9 | $ | 403.9 | $ | (38.0) | (9) | % | |||||||||||||||
Parts and service gross margin, excluding reconditioning and preparation | 47.2 | % | 48.1 | % | (0.9) | % | |||||||||||||||||
Reconditioning and preparation * | 104.9 | 118.4 | (13.5) | (11) | % | ||||||||||||||||||
Total parts and service gross profit | $ | 470.8 | $ | 522.3 | $ | (51.5) | (10) | % | |||||||||||||||
For the Year Ended December 31, |
Increase
(Decrease) |
%
Change |
|||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
(Dollars in millions, except for per vehicle data) | |||||||||||||||||||||||
As Reported: | |||||||||||||||||||||||
Finance and insurance, net | $ | 305.1 | $ | 316.0 | $ | (10.9) | (3) | % | |||||||||||||||
Finance and insurance, net per vehicle sold | $ | 1,736 | $ | 1,630 | $ | 106 | 7 | % | |||||||||||||||
Same Store: | |||||||||||||||||||||||
Finance and insurance, net | $ | 279.4 | $ | 292.3 | $ | (12.9) | (4) | % | |||||||||||||||
Finance and insurance, net per vehicle sold | $ | 1,775 | $ | 1,645 | $ | 130 | 8 | % |
For the Year Ended December 31, |
Increase
(Decrease) |
% of Gross
Profit Increase (Decrease) |
|||||||||||||||||||||||||||||||||
2020 |
% of Gross
Profit |
2019 |
% of Gross
Profit |
||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
As Reported: | |||||||||||||||||||||||||||||||||||
Personnel costs | $ | 386.5 | 31.6 | % | $ | 384.2 | 32.9 | % | $ | 2.3 | (1.3) | % | |||||||||||||||||||||||
Sales compensation | 121.4 | 9.9 | % | 122.1 | 10.4 | % | (0.7) | (0.5) | % | ||||||||||||||||||||||||||
Share-based compensation | 12.6 | 1.0 | % | 12.5 | 1.1 | % | 0.1 | (0.1) | % | ||||||||||||||||||||||||||
Outside services | 82.9 | 6.8 | % | 85.1 | 7.3 | % | (2.2) | (0.5) | % | ||||||||||||||||||||||||||
Advertising | 25.5 | 2.1 | % | 34.4 | 2.9 | % | (8.9) | (0.8) | % | ||||||||||||||||||||||||||
Rent | 32.2 | 2.6 | % | 27.1 | 2.3 | % | 5.1 | 0.3 | % | ||||||||||||||||||||||||||
Utilities | 15.8 | 1.3 | % | 16.4 | 1.4 | % | (0.6) | (0.1) | % | ||||||||||||||||||||||||||
Insurance | 16.7 | 1.4 | % | 14.5 | 1.2 | % | 2.2 | 0.2 | % | ||||||||||||||||||||||||||
Other | 88.3 | 7.2 | % | 103.5 | 8.9 | % | (15.2) | (1.7) | % | ||||||||||||||||||||||||||
Selling, general, and administrative expense | $ | 781.9 | 63.9 | % | $ | 799.8 | 68.4 | % | $ | (17.9) | (4.5) | % | |||||||||||||||||||||||
Gross profit | $ | 1,223.4 | $ | 1,168.9 | |||||||||||||||||||||||||||||||
Same Store: | |||||||||||||||||||||||||||||||||||
Personnel costs | $ | 339.4 | 31.9 | % | $ | 359.5 | 33.0 | % | $ | (20.1) | (1.1) | % | |||||||||||||||||||||||
Sales compensation | 107.2 | 10.1 | % | 112.3 | 10.3 | % | (5.1) | (0.2) | % | ||||||||||||||||||||||||||
Share-based compensation | 12.6 | 1.2 | % | 12.5 | 1.1 | % | 0.1 | 0.1 | % | ||||||||||||||||||||||||||
Outside services | 74.0 | 7.0 | % | 78.7 | 7.2 | % | (4.7) | (0.2) | % | ||||||||||||||||||||||||||
Advertising | 19.8 | 1.9 | % | 30.6 | 2.8 | % | (10.8) | (0.9) | % | ||||||||||||||||||||||||||
Rent | 31.7 | 3.0 | % | 26.8 | 2.5 | % | 4.9 | 0.5 | % | ||||||||||||||||||||||||||
Utilities | 13.9 | 1.3 | % | 15.2 | 1.4 | % | (1.3) | (0.1) | % | ||||||||||||||||||||||||||
Insurance | 13.7 | 1.3 | % | 12.4 | 1.1 | % | 1.3 | 0.2 | % | ||||||||||||||||||||||||||
Other | 80.0 | 7.5 | % | 98.9 | 9.2 | % | (18.9) | (1.7) | % | ||||||||||||||||||||||||||
Selling, general, and administrative expense | $ | 692.3 | 65.2 | % | $ | 746.9 | 68.6 | % | $ | (54.6) | (3.4) | % | |||||||||||||||||||||||
Gross profit | $ | 1,062.6 | $ | 1,088.3 |
For the Year Ended December 31, |
Increase
(Decrease) |
%
Change |
|||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||
(Dollars in millions, except per share data) | |||||||||||||||||||||||
REVENUE: | |||||||||||||||||||||||
New vehicle | $ | 3,863.3 | $ | 3,788.7 | $ | 74.6 | 2 | % | |||||||||||||||
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 | 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 expenses (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 dealership divestitures, net | (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 | % | |||||||||||||||
Net income per common share—Diluted | $ | 9.55 | $ | 8.28 | $ | 1.27 | 15 | % |
For the Year Ended December 31, | |||||||||||
2019 | 2018 | ||||||||||
REVENUE MIX PERCENTAGES: | |||||||||||
New vehicles | 53.6 | % | 55.1 | % | |||||||
Used retail vehicles | 26.9 | % | 25.9 | % | |||||||
Used vehicle wholesale | 2.6 | % | 2.8 | % | |||||||
Parts and service | 12.5 | % | 11.9 | % | |||||||
Finance and insurance, net | 4.4 | % | 4.3 | % | |||||||
Total revenue | 100.0 | % | 100.0 | % | |||||||
GROSS PROFIT MIX PERCENTAGES: | |||||||||||
New vehicles | 13.6 | % | 15.0 | % | |||||||
Used retail vehicles | 11.5 | % | 11.5 | % | |||||||
Used vehicle wholesale | 0.1 | % | 0.2 | % | |||||||
Parts and service | 47.8 | % | 46.8 | % | |||||||
Finance and insurance, net | 27.0 | % | 26.5 | % | |||||||
Total gross profit | 100.0 | % | 100.0 | % | |||||||
GROSS PROFIT MARGIN | 16.2 | % | 16.0 | % | |||||||
SG&A EXPENSES AS A PERCENTAGE OF GROSS PROFIT | 68.4 | % | 68.5 | % |
For the Year Ended December 31, |
Increase
(Decrease) |
%
Change |
|||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||
(Dollars in millions, except for per vehicle data) | |||||||||||||||||||||||
As Reported: | |||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Luxury | $ | 1,318.7 | $ | 1,235.3 | $ | 83.4 | 7 | % | |||||||||||||||
Import | 1,742.4 | 1,790.2 | (47.8) | (3) | % | ||||||||||||||||||
Domestic | 802.2 | 763.2 | 39.0 | 5 | % | ||||||||||||||||||
Total new vehicle revenue | $ | 3,863.3 | $ | 3,788.7 | $ | 74.6 | 2 | % | |||||||||||||||
Gross profit: | |||||||||||||||||||||||
Luxury | $ | 83.3 | $ | 80.0 | $ | 3.3 | 4 | % | |||||||||||||||
Import | 42.1 | 52.6 | (10.5) | (20) | % | ||||||||||||||||||
Domestic | 34.1 | 32.6 | 1.5 | 5 | % | ||||||||||||||||||
Total new vehicle gross profit | $ | 159.5 | $ | 165.2 | $ | (5.7) | (3) | % | |||||||||||||||
New vehicle units: | |||||||||||||||||||||||
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 units | 105,243 | 105,275 | (32) | — | % | ||||||||||||||||||
Same Store: | |||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
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 revenue | $ | 3,682.5 | $ | 3,743.3 | $ | (60.8) | (2) | % | |||||||||||||||
Gross profit: | |||||||||||||||||||||||
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 gross profit | $ | 151.2 | $ | 163.6 | $ | (12.4) | (8) | % | |||||||||||||||
New vehicle units: | |||||||||||||||||||||||
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 units | 100,246 | 103,641 | (3,395) | (3) | % |
For the Year Ended December 31, |
Increase
(Decrease) |
%
Change |
|||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||
As Reported: | |||||||||||||||||||||||
Revenue per new vehicle sold | $ | 36,708 | $ | 35,989 | $ | 719 | 2 | % | |||||||||||||||
Gross profit per new vehicle sold | $ | 1,516 | $ | 1,569 | $ | (53) | (3) | % | |||||||||||||||
New vehicle gross margin | 4.1 | % | 4.4 | % | (0.3) | % | |||||||||||||||||
Luxury: | |||||||||||||||||||||||
Gross profit per new vehicle sold | $ | 3,473 | $ | 3,481 | $ | (8) | — | % | |||||||||||||||
New vehicle gross margin | 6.3 | % | 6.5 | % | (0.2) | % | |||||||||||||||||
Import: | |||||||||||||||||||||||
Gross profit per new vehicle sold | $ | 685 | $ | 836 | $ | (151) | (18) | % | |||||||||||||||
New vehicle gross margin | 2.4 | % | 2.9 | % | (0.5) | % | |||||||||||||||||
Domestic: | |||||||||||||||||||||||
Gross profit per new vehicle sold | $ | 1,719 | $ | 1,684 | $ | 35 | 2 | % | |||||||||||||||
New vehicle gross margin | 4.3 | % | 4.3 | % | — | % | |||||||||||||||||
Same Store: | |||||||||||||||||||||||
Revenue per new vehicle sold | $ | 36,735 | $ | 36,118 | $ | 617 | 2 | % | |||||||||||||||
Gross profit per new vehicle sold | $ | 1,508 | $ | 1,579 | $ | (71) | (4) | % | |||||||||||||||
New vehicle gross margin | 4.1 | % | 4.4 | % | (0.3) | % | |||||||||||||||||
Luxury: | |||||||||||||||||||||||
Gross profit per new vehicle sold | $ | 3,491 | $ | 3,481 | $ | 10 | — | % | |||||||||||||||
New vehicle gross margin | 6.3 | % | 6.5 | % | (0.2) | % | |||||||||||||||||
Import: | |||||||||||||||||||||||
Gross profit per new vehicle sold | $ | 670 | $ | 832 | $ | (162) | (19) | % | |||||||||||||||
New vehicle gross margin | 2.4 | % | 2.9 | % | (0.5) | % | |||||||||||||||||
Domestic: | |||||||||||||||||||||||
Gross profit per new vehicle sold | $ | 1,659 | $ | 1,684 | $ | (25) | (1) | % | |||||||||||||||
New vehicle gross margin | 4.1 | % | 4.3 | % | (0.2) | % |
For the Year Ended December 31, | Increase (Decrease) |
%
Change |
|||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||
(Dollars in millions, except for per vehicle data) | |||||||||||||||||||||||
As Reported: | |||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Used vehicle retail revenues | $ | 1,941.3 | $ | 1,783.3 | $ | 158.0 | 9 | % | |||||||||||||||
Used vehicle wholesale revenues | 190.3 | 189.1 | 1.2 | 1 | % | ||||||||||||||||||
Used vehicle revenue | $ | 2,131.6 | $ | 1,972.4 | $ | 159.2 | 8 | % | |||||||||||||||
Gross profit: | |||||||||||||||||||||||
Used vehicle retail gross profit | $ | 133.1 | $ | 127.8 | $ | 5.3 | 4 | % | |||||||||||||||
Used vehicle wholesale gross profit | 1.0 | 1.9 | (0.9) | (47) | % | ||||||||||||||||||
Used vehicle gross profit | $ | 134.1 | $ | 129.7 | $ | 4.4 | 3 | % | |||||||||||||||
Used vehicle retail units: | |||||||||||||||||||||||
Used vehicle retail units | 88,602 | 82,377 | 6,225 | 8 | % | ||||||||||||||||||
Same Store: | |||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Used vehicle retail revenues | $ | 1,848.9 | $ | 1,755.7 | $ | 93.2 | 5 | % | |||||||||||||||
Used vehicle wholesale revenues | 183.9 | 185.4 | (1.5) | (1) | % | ||||||||||||||||||
Used vehicle revenue | $ | 2,032.8 | $ | 1,941.1 | $ | 91.7 | 5 | % | |||||||||||||||
Gross profit: | |||||||||||||||||||||||
Used vehicle retail gross profit | $ | 126.0 | $ | 126.1 | $ | (0.1) | — | % | |||||||||||||||
Used vehicle wholesale gross profit | 1.1 | 2.0 | (0.9) | (45) | % | ||||||||||||||||||
Used vehicle gross profit | $ | 127.1 | $ | 128.1 | $ | (1.0) | (1) | % | |||||||||||||||
Used vehicle retail units: | |||||||||||||||||||||||
Used vehicle retail units | 83,822 | 80,963 | 2,859 | 4 | % |
For the Year Ended December 31, | Increase (Decrease) |
%
Change |
|||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||
As Reported: | |||||||||||||||||||||||
Revenue per used vehicle retailed | $ | 21,910 | $ | 21,648 | $ | 262 | 1 | % | |||||||||||||||
Gross profit per used vehicle retailed | $ | 1,502 | $ | 1,551 | $ | (49) | (3) | % | |||||||||||||||
Used vehicle retail gross margin | 6.9 | % | 7.2 | % | (0.3) | % | |||||||||||||||||
Same Store: | |||||||||||||||||||||||
Revenue per used vehicle retailed | $ | 22,057 | $ | 21,685 | $ | 372 | 2 | % | |||||||||||||||
Gross profit per used vehicle retailed | $ | 1,503 | $ | 1,558 | $ | (55) | (4) | % | |||||||||||||||
Used vehicle retail gross margin | 6.8 | % | 7.2 | % | (0.4) | % |
For the Year Ended December 31, |
Increase
(Decrease) |
%
Change |
|||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
As Reported: | |||||||||||||||||||||||
Parts and service revenue | $ | 899.4 | $ | 821.0 | $ | 78.4 | 10 | % | |||||||||||||||
Parts and service gross profit: | |||||||||||||||||||||||
Customer pay | $ | 317.3 | $ | 292.0 | $ | 25.3 | 9 | % | |||||||||||||||
Warranty | 88.8 | 76.8 | 12.0 | 16 | % | ||||||||||||||||||
Wholesale parts | 23.8 | 22.8 | 1.0 | 4 | % | ||||||||||||||||||
Parts and service gross profit, excluding reconditioning and preparation | $ | 429.9 | $ | 391.6 | $ | 38.3 | 10 | % | |||||||||||||||
Parts and service gross margin, excluding reconditioning and preparation | 47.8 | % | 47.7 | % | 0.1 | % | |||||||||||||||||
Reconditioning and preparation * | 129.4 | 124.2 | 5.2 | 4 | % | ||||||||||||||||||
Total parts and service gross profit | $ | 559.3 | $ | 515.8 | $ | 43.5 | 8 | % | |||||||||||||||
Same Store: | |||||||||||||||||||||||
Parts and service revenue | $ | 867.0 | $ | 810.9 | $ | 56.1 | 7 | % | |||||||||||||||
Parts and service gross profit: | |||||||||||||||||||||||
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 gross profit, excluding reconditioning and preparation | $ | 414.2 | $ | 387.2 | $ | 27.0 | 7 | % | |||||||||||||||
Parts and service gross margin, excluding reconditioning and preparation | 47.8 | % | 47.7 | % | 0.1 | % | |||||||||||||||||
Reconditioning and preparation * | 124.5 | 122.0 | 2.5 | 2 | % | ||||||||||||||||||
Total parts and service gross profit | $ | 538.7 | $ | 509.2 | $ | 29.5 | 6 | % | |||||||||||||||
For the Year Ended December 31, |
Increase
(Decrease) |
%
Change |
|||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||
(Dollars in millions, except for per vehicle data) | |||||||||||||||||||||||
As Reported: | |||||||||||||||||||||||
Finance and insurance, net | $ | 316.0 | $ | 292.3 | $ | 23.7 | 8 | % | |||||||||||||||
Finance and insurance, net per vehicle sold | $ | 1,630 | $ | 1,558 | $ | 72 | 5 | % | |||||||||||||||
Same Store: | |||||||||||||||||||||||
Finance and insurance, net | $ | 302.4 | $ | 287.1 | $ | 15.3 | 5 | % | |||||||||||||||
Finance and insurance, net per vehicle sold | $ | 1,643 | $ | 1,555 | $ | 88 | 6 | % |
For the Year Ended December 31, |
Increase
(Decrease) |
% of Gross
Profit (Decrease) Increase |
|||||||||||||||||||||||||||||||||
2019 |
% of Gross
Profit |
2018 |
% of Gross
Profit |
||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
As Reported: | |||||||||||||||||||||||||||||||||||
Personnel costs | $ | 384.2 | 32.9 | % | $ | 362.6 | 32.9 | % | $ | 21.6 | — | % | |||||||||||||||||||||||
Sales compensation | 122.1 | 10.4 | % | 115.6 | 10.5 | % | 6.5 | (0.1) | % | ||||||||||||||||||||||||||
Share-based compensation | 12.5 | 1.1 | % | 10.5 | 1.0 | % | 2.0 | 0.1 | % | ||||||||||||||||||||||||||
Outside services | 85.1 | 7.3 | % | 83.0 | 7.5 | % | 2.1 | (0.2) | % | ||||||||||||||||||||||||||
Advertising | 34.4 | 2.9 | % | 30.6 | 2.8 | % | 3.8 | 0.1 | % | ||||||||||||||||||||||||||
Rent | 27.1 | 2.3 | % | 25.6 | 2.3 | % | 1.5 | — | % | ||||||||||||||||||||||||||
Utilities | 16.4 | 1.4 | % | 16.2 | 1.5 | % | 0.2 | (0.1) | % | ||||||||||||||||||||||||||
Insurance | 14.5 | 1.2 | % | 14.7 | 1.3 | % | (0.2) | (0.1) | % | ||||||||||||||||||||||||||
Other | 103.5 | 8.9 | % | 97.0 | 8.7 | % | 6.5 | 0.2 | % | ||||||||||||||||||||||||||
Selling, general, and administrative expense | $ | 799.8 | 68.4 | % | $ | 755.8 | 68.5 | % | $ | 44.0 | (0.1) | % | |||||||||||||||||||||||
Gross profit | $ | 1,168.9 | $ | 1,103.0 | |||||||||||||||||||||||||||||||
Same Store: | |||||||||||||||||||||||||||||||||||
Personnel costs | $ | 368.4 | 32.9 | % | $ | 357.8 | 32.9 | % | $ | 10.6 | — | % | |||||||||||||||||||||||
Sales compensation | 116.3 | 10.4 | % | 113.5 | 10.4 | % | 2.8 | — | % | ||||||||||||||||||||||||||
Share-based compensation | 12.5 | 1.1 | % | 10.5 | 1.0 | % | 2.0 | 0.1 | % | ||||||||||||||||||||||||||
Outside services | 81.3 | 7.3 | % | 81.4 | 7.5 | % | (0.1) | (0.2) | % | ||||||||||||||||||||||||||
Advertising | 30.7 | 2.7 | % | 29.8 | 2.7 | % | 0.9 | — | % | ||||||||||||||||||||||||||
Rent | 26.9 | 2.4 | % | 25.5 | 2.3 | % | 1.4 | 0.1 | % | ||||||||||||||||||||||||||
Utilities | 15.7 | 1.4 | % | 16.0 | 1.5 | % | (0.3) | (0.1) | % | ||||||||||||||||||||||||||
Insurance | 13.4 | 1.2 | % | 14.3 | 1.3 | % | (0.9) | (0.1) | % | ||||||||||||||||||||||||||
Other | 100.8 | 9.0 | % | 95.1 | 8.8 | % | 5.7 | 0.2 | % | ||||||||||||||||||||||||||
Selling, general, and administrative expense | $ | 766.0 | 68.4 | % | $ | 743.9 | 68.4 | % | $ | 22.1 | — | % | |||||||||||||||||||||||
Gross profit | $ | 1,119.4 | $ | 1,088.0 |
Payments due by period | |||||||||||||||||||||||||||||||||||||||||
2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | Total | |||||||||||||||||||||||||||||||||||
Floor plan notes payable (Notes10&11) | $ | 702.2 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 702.2 | |||||||||||||||||||||||||||
Operating lease liabilities (a) | 24.7 | 24.9 | 22.2 | 19.6 | 19.5 | 210.6 | 321.5 | ||||||||||||||||||||||||||||||||||
Operating lease liabilities expense (a) | 13.5 | 12.5 | 11.5 | 10.7 | 9.8 | 66.9 | 124.9 | ||||||||||||||||||||||||||||||||||
Long-term debt (Note 13) (a) | 37.1 | 20.6 | 34.2 | 53.0 | 144.6 | 931.6 | 1,221.1 | ||||||||||||||||||||||||||||||||||
Interest on long-term debt (a)(b) | 47.7 | 47.1 | 46.3 | 45.5 | 42.8 | 133.4 | 362.8 | ||||||||||||||||||||||||||||||||||
Total contractual obligations | $ | 825.2 | $ | 105.1 | $ | 114.2 | $ | 128.8 | $ | 216.7 | $ | 1,342.5 | $ | 2,732.5 |
For the Year Ended December 31, | |||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Reconciliation of Cash provided by operating activities to Cash provided by operating activities, as adjusted | |||||||||||||||||||||||
Cash provided by operating activities, as reported | $ | 652.5 | $ | 349.8 | $ | 10.1 | |||||||||||||||||
New vehicle floor plan borrowings (repayments)—non-trade, net
|
(155.3) | (194.7) | 171.5 | ||||||||||||||||||||
Cash provided by operating activities, as adjusted | $ | 497.2 | $ | 155.1 | $ | 181.6 |
Inception Date | Notional Principal Amount | Notional Value | Maturity Value | Maturity Date | ||||||||||||||||||||||
(In millions) | (In millions) | (In millions) | ||||||||||||||||||||||||
July 2020 | $ | 93.5 | $ | 91.8 | $ | 50.6 | December 2028 | |||||||||||||||||||
July 2020 | $ | 85.5 | $ | 84.1 | $ | 57.3 | November 2025 | |||||||||||||||||||
June 2015 | $ | 100.0 | $ | 74.6 | $ | 53.1 | February 2025 | |||||||||||||||||||
November 2013 | $ | 75.0 | $ | 49.0 | $ | 38.7 | September 2023 |
Page | |||||
Fair Value Estimate of Manufacturer Franchise Rights in Acquisitions and Impairment Assessments | |||||
Description of the Matter | During 2020, the Company completed its acquisition of fifteen franchises (nine dealership locations) for a total purchase price of $953.5 million, $337.8 million of which related to manufacturer franchise rights, an indefinite-lived intangible asset, as disclosed in Note 3 to the consolidated financial statements. Each transaction was accounted for as a business combination. At December 31, 2020, the Company's manufacturer franchise rights for these and prior acquisitions had an aggregate carrying value of approximately $425.2 million, as disclosed in Note 9 of the consolidated financial statements. Each manufacturer franchise right asset is assessed for impairment annually as of October 1st, or more often if events or circumstances indicated that impairment may have occurred. If the fair value of the intangible asset is less than its carrying amount, an impairment loss is recognized in an amount equal to the difference. In connection with its impairment assessments during the year-ended December 31, 2020, the Company recorded impairment charges of $23.0 million related to manufacturer franchise rights. | ||||
Auditing the Company's estimate of fair value of the manufacturer franchise rights acquired during the year, as well as the fair value estimates used in the impairment assessments, is complex due to the significant management judgments and estimates required. The Company's model for estimating the fair value of these assets utilizes market participant assumptions related to the cash flows directly attributable to the franchise rights, including year-over-year and terminal growth rates, working capital requirements, weighted average cost of capital, future gross margins and future selling, general and administrative expenses, all of which are forward-looking and affected by expectations about economic, industry and company-specific factors. | |||||
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of the Company’s process over the manufacturer franchise rights fair value estimates used in conjunction with its acquisitions and its impairment assessments. For example, this included testing controls over management’s review of the model, significant assumptions, other inputs and the completeness and accuracy of the data used in the measurements. | ||||
To test the fair value of the Company's manufacturer franchise rights at acquisition and as part of the impairment assessments, our audit procedures included, among others, evaluating the Company's use of the discounted cash flows method, testing of the assumptions and inputs to the valuation model used to develop the projected financial information, involving our valuation specialists to assist in the testing of the weighted average cost of capital utilized and testing the completeness and accuracy of the underlying data. We compared the assumptions to current industry, market and economic trends, to the Company's historical results and other market participant considerations. In addition, we assessed the accuracy of the Company’s historical projections by comparing them to actual operating results. We also performed a sensitivity analysis of certain assumptions such as year-over-year and terminal growth rates, future gross margins, future selling, general, and administrative expenses and weighted average cost of capital to evaluate the potential change in the fair value of the manufacturer franchise rights resulting from changes in underlying assumptions. |
As of December 31, | |||||||||||
2020 | 2019 | ||||||||||
ASSETS | |||||||||||
CURRENT ASSETS: | |||||||||||
Cash and cash equivalents | $ | 1.4 | $ | 3.5 | |||||||
Contracts-in-transit, net | 161.5 | 194.7 | |||||||||
Accounts receivable, net | 155.5 | 136.2 | |||||||||
Inventories, net | 875.2 | 985.0 | |||||||||
Assets held for sale | 28.3 | 154.2 | |||||||||
Other current assets | 183.8 | 129.0 | |||||||||
Total current assets | 1,405.7 | 1,602.6 | |||||||||
PROPERTY AND EQUIPMENT, net | 956.2 | 909.7 | |||||||||
OPERATING LEASE RIGHT-OF-USE ASSETS | 317.4 | 65.6 | |||||||||
GOODWILL | 562.2 | 201.7 | |||||||||
INTANGIBLE FRANCHISE RIGHTS | 425.2 | 121.7 | |||||||||
OTHER LONG-TERM ASSETS | 9.6 | 10.0 | |||||||||
Total assets | $ | 3,676.3 | $ | 2,911.3 | |||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
CURRENT LIABILITIES: | |||||||||||
Floor plan notes payable—trade, net | $ | 64.9 | $ | 130.3 | |||||||
Floor plan notes payable—non-trade, net | 637.3 | 657.7 | |||||||||
Current maturities of long-term debt | 36.6 | 32.4 | |||||||||
Current maturities of operating leases | 24.8 | 17.0 | |||||||||
Accounts payable and accrued liabilities | 450.9 | 308.7 | |||||||||
Liabilities associated with assets held for sale | 8.9 | 100.9 | |||||||||
Total current liabilities | 1,223.4 | 1,247.0 | |||||||||
LONG-TERM DEBT | 1,165.2 | 907.0 | |||||||||
LONG-TERM LEASE LIABILITY | 296.7 | 52.6 | |||||||||
DEFERRED INCOME TAXES | 34.6 | 26.0 | |||||||||
OTHER LONG-TERM LIABILITIES | 50.9 | 32.4 | |||||||||
COMMITMENTS AND CONTINGENCIES (Note 20) | |||||||||||
SHAREHOLDERS' EQUITY: | |||||||||||
Preferred stock, $.01 par value, 10,000,000 shares authorized; none issued or outstanding
|
— | — | |||||||||
Common stock, $.01 par value, 90,000,000 shares authorized; 41,133,668 and 41,072,080 shares issued, including shares held in treasury, respectively
|
0.4 | 0.4 | |||||||||
Additional paid-in capital | 595.5 | 582.9 | |||||||||
Retained earnings | 1,348.9 | 1,094.5 | |||||||||
Treasury stock, at cost; 21,848,314 and 21,791,707 shares, respectively
|
(1,033.7) | (1,028.6) | |||||||||
Accumulated other comprehensive loss | (5.6) | (2.9) | |||||||||
Total shareholders' equity | 905.5 | 646.3 | |||||||||
Total liabilities and shareholders' equity | $ | 3,676.3 | $ | 2,911.3 |
For the Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
REVENUE: | |||||||||||||||||
New vehicle | $ | 3,767.4 | $ | 3,863.3 | $ | 3,788.7 | |||||||||||
Used vehicle | 2,169.5 | 2,131.6 | 1,972.4 | ||||||||||||||
Parts and service | 889.8 | 899.4 | 821.0 | ||||||||||||||
Finance and insurance, net | 305.1 | 316.0 | 292.3 | ||||||||||||||
TOTAL REVENUE | 7,131.8 | 7,210.3 | 6,874.4 | ||||||||||||||
COST OF SALES: | |||||||||||||||||
New vehicle | 3,548.9 | 3,703.8 | 3,623.5 | ||||||||||||||
Used vehicle | 2,012.9 | 1,997.5 | 1,842.7 | ||||||||||||||
Parts and service | 346.6 | 340.1 | 305.2 | ||||||||||||||
TOTAL COST OF SALES | 5,908.4 | 6,041.4 | 5,771.4 | ||||||||||||||
GROSS PROFIT | 1,223.4 | 1,168.9 | 1,103.0 | ||||||||||||||
OPERATING EXPENSES: | |||||||||||||||||
Selling, general, and administrative | 781.9 | 799.8 | 755.8 | ||||||||||||||
Depreciation and amortization | 38.5 | 36.2 | 33.7 | ||||||||||||||
Franchise rights impairment | 23.0 | 7.1 | 3.7 | ||||||||||||||
Other operating expenses (income), net | 9.2 | 0.8 | (1.1) | ||||||||||||||
INCOME FROM OPERATIONS | 370.8 | 325.0 | 310.9 | ||||||||||||||
OTHER EXPENSES (INCOME): | |||||||||||||||||
Floor plan interest expense | 17.7 | 37.9 | 32.5 | ||||||||||||||
Other interest expense, net | 56.7 | 54.9 | 53.1 | ||||||||||||||
Swap interest expense | — | — | 0.5 | ||||||||||||||
Loss on extinguishment of long-term debt, net | 20.6 | — | — | ||||||||||||||
Gain on dealership divestitures, net | (62.3) | (11.7) | — | ||||||||||||||
Total other expenses, net | 32.7 | 81.1 | 86.1 | ||||||||||||||
INCOME BEFORE INCOME TAXES | 338.1 | 243.9 | 224.8 | ||||||||||||||
Income tax expense | 83.7 | 59.5 | 56.8 | ||||||||||||||
NET INCOME | $ | 254.4 | $ | 184.4 | $ | 168.0 | |||||||||||
EARNINGS PER COMMON SHARE: | |||||||||||||||||
Basic— | |||||||||||||||||
Net Income | $ | 13.25 | $ | 9.65 | $ | 8.36 | |||||||||||
Diluted— | |||||||||||||||||
Net Income | $ | 13.18 | $ | 9.55 | $ | 8.28 | |||||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||||||||||||||||
Basic | 19.2 | 19.1 | 20.1 | ||||||||||||||
Restricted stock | — | 0.1 | 0.1 | ||||||||||||||
Performance share units | 0.1 | 0.1 | 0.1 | ||||||||||||||
Diluted | 19.3 | 19.3 | 20.3 |
For the Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net income | $ | 254.4 | $ | 184.4 | $ | 168.0 | |||||||||||
Other comprehensive income (loss): | |||||||||||||||||
Change in fair value of cash flow swaps | (3.6) | (4.4) | 2.3 | ||||||||||||||
Income tax benefit (expense) associated with cash flow swaps | 0.9 | 1.1 | (0.8) | ||||||||||||||
Comprehensive income | $ | 251.7 | $ | 181.1 | $ | 169.5 |
Common Stock |
Additional
Paid-in Capital |
Retained
Earnings |
Treasury Stock |
Accumulated
Other Comprehensive Income (Loss) |
Total | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balances, December 31, 2017 | 40,969,987 | $ | 0.4 | $ | 563.5 | $ | 750.3 | 20,156,962 | $ | (919.1) | $ | (0.9) | $ | 394.2 | |||||||||||||||||||||||||||||||||
Comprehensive Income: | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | 168.0 | — | — | — | 168.0 | |||||||||||||||||||||||||||||||||||||||
Change in fair value of cash flow swaps, net of reclassification adjustment and $0.8 tax expense
|
— | — | — | — | — | — | 1.5 | 1.5 | |||||||||||||||||||||||||||||||||||||||
Comprehensive income | — | — | — | 168.0 | — | — | 1.5 | 169.5 | |||||||||||||||||||||||||||||||||||||||
Cumulative effect of change in
accounting principle - ASU 2014-09
|
— | — | — | 9.2 | — | — | — | 9.2 | |||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 10.5 | — | — | — | — | 10.5 | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock
in connection with share-based payment arrangements |
185,049 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Repurchase of common stock associated with net share settlements of employee share-based awards | — | — | — | — | 71,434 | (4.8) | — | (4.8) | |||||||||||||||||||||||||||||||||||||||
Purchase of treasury shares | — | — | — | — | 1,580,910 | (105.4) | — | (105.4) | |||||||||||||||||||||||||||||||||||||||
Retirement of previously repurchased common stock | (89,967) | $ | — | $ | (1.1) | $ | (4.8) | (89,967) | $ | 5.9 | $ | — | $ | — | |||||||||||||||||||||||||||||||||
Balances, December 31, 2018 | 41,065,069 | $ | 0.4 | $ | 572.9 | $ | 922.7 | 21,719,339 | $ | (1,023.4) | $ | 0.6 | $ | 473.2 | |||||||||||||||||||||||||||||||||
Comprehensive Income: | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | 184.4 | — | — | — | 184.4 | |||||||||||||||||||||||||||||||||||||||
Change in fair value of cash flow swaps, net of reclassification adjustment and $1.1 tax benefit
|
— | — | — | — | — | — | (3.3) | (3.3) | |||||||||||||||||||||||||||||||||||||||
Comprehensive income | — | — | — | 184.4 | — | — | (3.3) | 181.1 | |||||||||||||||||||||||||||||||||||||||
Cumulative effect of change in
accounting principle - ASU 2018-02
|
— | — | — | 0.2 | — | — | (0.2) | — | |||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 12.5 | — | — | 12.5 | |||||||||||||||||||||||||||||||||||||||||
Issuance of common stock
in connection with share-based payment arrangements |
209,390 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock associated with net share settlements of employee share-based awards | — | — | — | — | 72,368 | (5.2) | — | (5.2) | |||||||||||||||||||||||||||||||||||||||
Purchase of treasury shares | — | — | — | — | 202,379 | (15.3) | — | (15.3) | |||||||||||||||||||||||||||||||||||||||
Retirement of previously repurchased common stock | (202,379) | — | (2.5) | (12.8) | (202,379) | 15.3 | — | — | |||||||||||||||||||||||||||||||||||||||
Balances, December 31, 2019 | 41,072,080 | $ | 0.4 | $ | 582.9 | $ | 1,094.5 | 21,791,707 | $ | (1,028.6) | $ | (2.9) | $ | 646.3 | |||||||||||||||||||||||||||||||||
Comprehensive Income: | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | 254.4 | — | — | — | 254.4 | |||||||||||||||||||||||||||||||||||||||
Change in fair value of cash flow swaps, net of reclassification adjustment and $0.9 tax benefit
|
— | — | — | — | — | — | (2.7) | (2.7) | |||||||||||||||||||||||||||||||||||||||
Comprehensive income | — | — | — | 254.4 | — | — | (2.7) | 251.7 | |||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 12.6 | — | — | 12.6 | |||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net of forfeitures, in connection with share-based payment arrangements | 61,588 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock associated with net share settlements of employee share-based awards | — | — | — | — | 56,607 | (5.1) | — | (5.1) | |||||||||||||||||||||||||||||||||||||||
Balances, December 31, 2020 | 41,133,668 | $ | 0.4 | $ | 595.5 | $ | 1,348.9 | 21,848,314 | $ | (1,033.7) | $ | (5.6) | $ | 905.5 |
For the Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
CASH FLOW FROM OPERATING ACTIVITIES: | |||||||||||||||||
Net income | $ | 254.4 | $ | 184.4 | $ | 168.0 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities— | |||||||||||||||||
Depreciation and amortization | 38.5 | 36.2 | 33.7 | ||||||||||||||
Share-based compensation | 12.6 | 12.5 | 10.5 | ||||||||||||||
Deferred income taxes | 9.5 | 5.4 | 5.3 | ||||||||||||||
Franchise rights impairment | 23.0 | 7.1 | 3.7 | ||||||||||||||
Loss on extinguishment of debt | 20.6 | — | — | ||||||||||||||
Loaner vehicle amortization | 21.8 | 23.6 | 22.5 | ||||||||||||||
Gain on divestitures | (62.3) | (11.7) | — | ||||||||||||||
Change in right-of-use asset | 21.5 | 19.4 | — | ||||||||||||||
Other adjustments, net | 1.3 | 4.8 | 3.1 | ||||||||||||||
Changes in operating assets and liabilities, net of acquisitions and divestitures— | |||||||||||||||||
Contracts-in-transit | 33.2 | 3.6 | (5.0) | ||||||||||||||
Accounts receivable | (19.1) | (6.0) | (1.5) | ||||||||||||||
Inventories | 428.0 | 212.1 | (24.4) | ||||||||||||||
Other current assets | (183.3) | (173.7) | (200.8) | ||||||||||||||
Floor plan notes payable—trade, net | (64.5) | 38.2 | 9.8 | ||||||||||||||
Accounts payable and accrued liabilities | 121.0 | 10.7 | (16.2) | ||||||||||||||
Operating lease liabilities | (20.9) | (19.7) | — | ||||||||||||||
Other long-term assets and liabilities, net | 17.2 | 2.9 | 1.4 | ||||||||||||||
Net cash provided by operating activities | 652.5 | 349.8 | 10.1 | ||||||||||||||
CASH FLOW FROM INVESTING ACTIVITIES: | |||||||||||||||||
Capital expenditures—excluding real estate | (46.5) | (57.6) | (40.3) | ||||||||||||||
Capital expenditures—real estate | (2.3) | (9.2) | (17.6) | ||||||||||||||
Purchases of previously leased real estate | — | (4.9) | (4.4) | ||||||||||||||
Acquisitions | (954.1) | (210.0) | (91.3) | ||||||||||||||
Divestitures | 177.9 | 39.1 | — | ||||||||||||||
Proceeds from the sale of assets | 4.2 | 15.0 | 4.0 | ||||||||||||||
Net cash used in investing activities | (820.8) | (227.6) | (149.6) | ||||||||||||||
CASH FLOW FROM FINANCING ACTIVITIES: | |||||||||||||||||
Floor plan borrowings—non-trade | 4,312.0 | 4,318.6 | 4,591.9 | ||||||||||||||
Floor plan borrowings—acquisitions | 131.6 | 55.3 | 22.7 | ||||||||||||||
Floor plan repayments—non-trade | (4,467.3) | (4,513.3) | (4,390.4) | ||||||||||||||
Floor plan repayments—divestitures | (60.4) | (14.1) | — | ||||||||||||||
Proceeds from borrowings | 1,875.3 | 97.7 | 50.7 | ||||||||||||||
Repayments of borrowings | (1,622.5) | (48.4) | (19.9) | ||||||||||||||
Sale and leaseback transaction | 7.3 | — | — | ||||||||||||||
Payment of debt issuance costs | (4.7) | (2.3) | (1.7) | ||||||||||||||
Repurchases of common stock, including amounts associated with net share settlements of employee share-based awards | (5.1) | (20.5) | (110.2) | ||||||||||||||
Net cash provided by (used in) financing activities | 166.2 | (127.0) | 143.1 | ||||||||||||||
Net (decrease) increase in cash and cash equivalents | (2.1) | (4.8) | 3.6 | ||||||||||||||
CASH AND CASH EQUIVALENTS, beginning of period | 3.5 | 8.3 | 4.7 | ||||||||||||||
CASH AND CASH EQUIVALENTS, end of period | $ | 1.4 | $ | 3.5 | $ | 8.3 |
Buildings and improvements |
10-40
|
||||
Machinery and equipment |
5-10
|
||||
Furniture and fixtures |
3-10
|
||||
Company vehicles |
3-5
|
Manufacturer (Vehicle Brands): |
% of Total
New Vehicle Revenues |
|||||||
Toyota Motor Sales, U.S.A., Inc. (Toyota and Lexus)
|
21 | % | ||||||
American Honda Motor Co., Inc. (Honda and Acura)
|
20 | % | ||||||
Mercedes-Benz USA, LLC (Mercedes-Benz and Sprinter)
|
10 | % | ||||||
Ford Motor Company (Ford and Lincoln)
|
9 | % | ||||||
Nissan North America, Inc. (Nissan and Infiniti)
|
7 | % | ||||||
BMW of North America, LLC (BMW and Mini)
|
6 | % |
For the year ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Revenue: | |||||||||||||||||
New vehicle | $ | 3,767.4 | $ | 3,863.3 | $ | 3,788.7 | |||||||||||
Used vehicle retail | 1,930.0 | 1,941.3 | 1,783.3 | ||||||||||||||
Used vehicle wholesale | 239.5 | 190.3 | 189.1 | ||||||||||||||
New and used vehicle | 5,936.9 | 5,994.9 | 5,761.1 | ||||||||||||||
Sale of vehicle parts and accessories | 140.1 | 148.8 | 139.2 | ||||||||||||||
Vehicle repair and maintenance services | 749.7 | 750.6 | 681.8 | ||||||||||||||
Parts and services | 889.8 | 899.4 | 821.0 | ||||||||||||||
Finance and insurance, net | 305.1 | 316.0 | 292.3 | ||||||||||||||
Total revenue | $ | 7,131.8 | $ | 7,210.3 | $ | 6,874.4 |
Vehicle Repair and Maintenance Services | Finance and Insurance, net | Total | |||||||||||||||
(In millions) | |||||||||||||||||
Contract Assets (Current), January 1, 2018 | $ | 6.4 | $ | 10.0 | $ | 16.4 | |||||||||||
Transferred to receivables from contract assets recognized at the beginning of the period | (6.4) | (10.0) | (16.4) | ||||||||||||||
Increases related to revenue recognized, inclusive of adjustments to constraint, during the period | 4.1 | 10.6 | 14.7 | ||||||||||||||
Contract Assets (Current), December 31, 2018 | 4.1 | 10.6 | 14.7 | ||||||||||||||
Transferred to receivables from contract assets recognized at the beginning of the period | (4.1) | (10.6) | (14.7) | ||||||||||||||
Increases related to revenue recognized, inclusive of adjustments to constraint, during the period | 4.8 | 12.3 | 17.1 | ||||||||||||||
Contract Assets (Current), December 31, 2019 | 4.8 | 12.3 | 17.1 | ||||||||||||||
Transferred to receivables from contract assets recognized at the beginning of the period | (4.8) | (12.3) | (17.1) | ||||||||||||||
Increases related to revenue recognized, inclusive of adjustments to constraint, during the period | 7.1 | 13.3 | 20.4 | ||||||||||||||
Contract Assets (Current), December 31, 2020 | $ | 7.1 | $ | 13.3 | $ | 20.4 |
(In millions) | |||||
Cash | $ | 527.4 | |||
Seller Notes | 200.0 | ||||
New Vehicle Floor Plan Facility | 127.5 | ||||
Used Vehicle Floor Plan Facility | 35.0 | ||||
Purchase price | $ | 889.9 |
For the Year Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
(In millions) | |||||||||||
(Unaudited) | |||||||||||
Pro Forma Revenue | $ | 7,989.6 | $ | 8,828.1 | |||||||
Pro Forma Net Income | $ | 276.2 | $ | 234.0 |
For the Year Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
(In millions) | |||||||||||
Inventory | $ | 29.8 | $ | 70.9 | |||||||
Real estate | 14.5 | 43.1 | |||||||||
Property and equipment | 0.4 | 4.5 | |||||||||
Goodwill | 5.4 | 25.9 | |||||||||
Manufacturer franchise rights | 13.8 | 65.3 | |||||||||
Loaner vehicles | — | 1.5 | |||||||||
Liabilities assumed | — | (0.8) | |||||||||
Other | $ | (0.3) | $ | — | |||||||
Total purchase price | $ | 63.6 | $ | 210.4 |
As of December 31, | |||||||||||
2020 | 2019 | ||||||||||
(In millions) | |||||||||||
Vehicle receivables | $ | 61.2 | $ | 44.8 | |||||||
Manufacturer receivables | 57.1 | 50.4 | |||||||||
Other receivables | 38.4 | 42.4 | |||||||||
Total accounts receivable | 156.7 | 137.6 | |||||||||
Less—Allowance for credit losses | (1.2) | (1.4) | |||||||||
Accounts receivable, net | $ | 155.5 | $ | 136.2 |
As of December 31, | |||||||||||
2020 | 2019 | ||||||||||
(In millions) | |||||||||||
New vehicles | $ | 640.0 | $ | 802.6 | |||||||
Used vehicles | 188.5 | 140.1 | |||||||||
Parts and accessories | 46.7 | 42.3 | |||||||||
Total inventories | $ | 875.2 | $ | 985.0 |
As of December 31, | |||||||||||
2020 | 2019 | ||||||||||
Assets: | |||||||||||
Inventory | $ | — | $ | 67.7 | |||||||
Loaners, net | — | 3.0 | |||||||||
Property and equipment, net | 28.3 | 69.0 | |||||||||
Operating lease right-of-use assets | — | 6.9 | |||||||||
Goodwill | — | 5.3 | |||||||||
Franchise rights | — | 2.3 | |||||||||
Total Assets held for sale | 28.3 | 154.2 | |||||||||
Liabilities: | |||||||||||
Floor plan notes payable—trade | — | 21.9 | |||||||||
Floor plan notes payable—non-trade | — | 40.9 | |||||||||
Loaners/ Notes payable | — | 3.1 | |||||||||
Current maturities of long-term debt | 0.5 | 0.3 | |||||||||
Current maturities of operating leases | — | 4.2 | |||||||||
Long-term debt | 8.4 | 27.8 | |||||||||
Operating lease liabilities | — | 2.7 | |||||||||
Total Liabilities associated with assets held for sale | 8.9 | 100.9 | |||||||||
Net assets held for sale | $ | 19.4 | $ | 53.3 |
As of December 31, | |||||||||||
2020 | 2019 | ||||||||||
(In millions) | |||||||||||
Loaner vehicles | $ | 136.0 | $ | 83.8 | |||||||
Contract assets (see Note 2) | 20.4 | 17.1 | |||||||||
Prepaid expenses | 13.4 | 5.8 | |||||||||
Prepaid taxes | 7.1 | 4.7 | |||||||||
Deposits | 1.1 | 11.0 | |||||||||
Other | 5.8 | 6.6 | |||||||||
Other current assets | $ | 183.8 | $ | 129.0 |
As of December 31, | |||||||||||
2020 | 2019 | ||||||||||
(In millions) | |||||||||||
Land | $ | 350.5 | $ | 343.8 | |||||||
Buildings and leasehold improvements | 691.6 | 622.9 | |||||||||
Machinery and equipment | 107.4 | 99.8 | |||||||||
Furniture and fixtures | 72.9 | 63.9 | |||||||||
Company vehicles | 9.5 | 8.1 | |||||||||
Construction in progress | 19.9 | 42.4 | |||||||||
Gross property and equipment | 1,251.8 | 1,180.9 | |||||||||
Less—Accumulated depreciation | (295.6) | (271.2) | |||||||||
Property and equipment, net (a) | $ | 956.2 | $ | 909.7 |
Goodwill | |||||
(In millions) | |||||
Balance as of December 31, 2018 (a) | $ | 181.2 | |||
Acquisitions | 25.9 | ||||
Divestitures | (0.1) | ||||
Reclassified to assets held for sale | (5.3) | ||||
Balance as of December 31, 2019 (a) | 201.7 | ||||
Acquisitions | 364.3 | ||||
Divestitures | (9.1) | ||||
Reclassified from assets held for sale | 5.3 | ||||
Balance as of December 31, 2020 (a) | $ | 562.2 |
Intangible Franchise Rights | |||||
(In millions) | |||||
Balance as of December 31, 2018 | $ | 65.8 | |||
Acquisitions | 65.3 | ||||
Impairments | (7.1) | ||||
Reclassified to assets held for sale | (2.3) | ||||
Balance as of December 31, 2019 | $ | 121.7 | |||
Acquisitions | 337.8 | ||||
Divestitures | (11.3) | ||||
Impairments | (23.0) | ||||
Balance as of December 31, 2020 | $ | 425.2 |
As of December 31, | |||||||||||
2020 | 2019 | ||||||||||
(In millions) | |||||||||||
Floor plan notes payable—trade (a) | $ | 71.7 | $ | 146.5 | |||||||
Floor plan notes payable offset account | (6.8) | (16.2) | |||||||||
Total floor plan notes payable—trade, net | $ | 64.9 | $ | 130.3 |
As of December 31, | |||||||||||
2020 | 2019 | ||||||||||
(In millions) | |||||||||||
Floor plan notes payable—new non-trade (a) | $ | 715.9 | $ | 773.6 | |||||||
Floor plan notes payable offset account | (78.6) | (115.9) | |||||||||
Total floor plan notes payable—non-trade, net | $ | 637.3 | $ | 657.7 |
As of December 31, | |||||||||||
2020 | 2019 | ||||||||||
(In millions) | |||||||||||
Accounts payable | $ | 97.6 | $ | 81.7 | |||||||
Loaner vehicles notes payable (a) | 132.7 | 83.9 | |||||||||
Taxes payable | 69.1 | 30.5 | |||||||||
Accrued compensation | 43.7 | 30.5 | |||||||||
Accrued insurance | 24.3 | 25.3 | |||||||||
Accrued finance and insurance chargebacks | 23.3 | 22.9 | |||||||||
Accrued interest | 16.4 | 6.0 | |||||||||
Accrued licenses and regulatory fees | 9.6 | 3.0 | |||||||||
Customer deposits | 8.7 | 5.1 | |||||||||
Accrued advertising | 3.2 | 5.1 | |||||||||
Customer we owe liabilities | 2.8 | 3.3 | |||||||||
Other | 19.5 | 11.4 | |||||||||
Accounts payable and accrued liabilities | $ | 450.9 | $ | 308.7 |
As of December 31, | |||||||||||
2020 | 2019 | ||||||||||
(In millions) | |||||||||||
6.0% Senior Subordinated Notes due 2024
|
$ | — | $ | 600.0 | |||||||
4.50% Senior Notes due 2028
|
405.0 | — | |||||||||
4.75% Senior Notes due 2030
|
445.0 | — | |||||||||
Mortgage notes payable bearing interest at fixed rates (the weighted average interest rates were 5.4% and 5.3% for the year ended December 31, 2020 and 2019, respectively)
|
79.2 | 100.5 | |||||||||
2018 Bank of America Facility (a) | 84.2 | 88.3 | |||||||||
2018 Wells Fargo Master Loan Facility (b) | 86.9 | 25.0 | |||||||||
2013 BofA Real Estate Facility | 33.6 | 35.5 | |||||||||
2015 Wells Fargo Master Loan Facility (c) | 61.7 | 76.8 | |||||||||
Finance lease liability | 16.6 | 17.2 | |||||||||
Total debt outstanding | 1,212.2 | 943.3 | |||||||||
Add—unamortized premium on 6.0% Senior Subordinated Notes due 2024
|
— | 5.1 | |||||||||
Add—unamortized premium on 4.50% Senior Notes due 2028
|
1.2 | — | |||||||||
Add—unamortized premium on 4.75% Senior Notes due 2030
|
2.1 | — | |||||||||
Less—debt issuance costs | (13.7) | (9.0) | |||||||||
Long-term debt, including current portion | 1,201.8 | 939.4 | |||||||||
Less—current portion, net of debt issuance costs | (36.6) | (32.4) | |||||||||
Long-term debt | $ | 1,165.2 | $ | 907.0 |
2021 | $ | 37.1 | |||
2022 | 20.6 | ||||
2023 | 34.2 | ||||
2024 | 53.0 | ||||
2025 | 144.6 | ||||
Thereafter | 931.6 | ||||
Total maturities of long-term debt | $ | 1,221.1 |
As of December 31, 2020 | As of December 31, 2019 | |||||||||||||||||||||||||||||||||||||
Mortgage Agreement | Aggregate Principal Outstanding | Carrying Value of Collateralized Related Real Estate | Maturity Dates | Aggregate Principal Outstanding | Carrying Value of Collateralized Related Real Estate | Maturity Dates | ||||||||||||||||||||||||||||||||
Captive mortgages | $ | 77.4 | $ | 201.7 | 2020-2024 | $ | 80.8 | $ | 182.1 | 2019-2024 | ||||||||||||||||||||||||||||
Other mortgage debt | 1.8 | 43.2 | 2020-2022 | 19.7 | 43.9 | 2020-2022 | ||||||||||||||||||||||||||||||||
2018 BofA Real Estate Facility (a) | 84.2 | 106.2 | 2025 | 88.3 | 123.6 | 2025 | ||||||||||||||||||||||||||||||||
2018 Wells Fargo Master Loan Facility (b) | 86.9 | 112.9 | 2028 | 25.0 | 113.7 | 2028 | ||||||||||||||||||||||||||||||||
2013 BofA Real Estate Facility | 33.6 | 73.3 | 2023 | 35.5 | 74.6 | 2023 | ||||||||||||||||||||||||||||||||
2015 Wells Fargo Master Loan Facility (c) | 61.7 | 109.6 | 2025 | 76.8 | 120.6 | 2025 | ||||||||||||||||||||||||||||||||
Total mortgage debt | $ | 345.6 | $ | 646.9 | $ | 326.1 | $ | 658.5 |
As of December 31, | |||||||||||
2020 | 2019 | ||||||||||
(In millions) | |||||||||||
Carrying Value: | |||||||||||
6.0% Senior Subordinated Notes due 2024
|
$ | — | $ | 598.8 | |||||||
4.50% Senior Notes due 2028
|
400.9 | — | |||||||||
4.75% Senior Notes due 2030
|
440.6 | — | |||||||||
Mortgage notes payable (a) | 343.7 | 323.4 | |||||||||
Total carrying value | $ | 1,185.2 | $ | 922.2 | |||||||
Fair Value: | |||||||||||
6.0% Senior Subordinated Notes due 2024
|
$ | — | $ | 619.5 | |||||||
4.50% Senior Notes due 2028
|
423.2 | — | |||||||||
4.75% Senior Notes due 2030
|
476.2 | — | |||||||||
Mortgage notes payable (a) | 354.5 | 364.2 | |||||||||
Total fair value | $ | 1,253.9 | $ | 983.7 |
Inception Date | Notional Principal Amount |
Notional Value as of December 31, 2020
|
Maturity Value | Maturity Date | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
July 2020 | $ | 93.5 | $ | 91.8 | $ | 50.6 | December 2028 | |||||||||||||||||||
July 2020 | $ | 85.5 | $ | 84.1 | $ | 57.3 | November 2025 | |||||||||||||||||||
June 2015 | $ | 100.0 | $ | 74.6 | $ | 53.1 | February 2025 | |||||||||||||||||||
November 2013 | $ | 75.0 | $ | 49.0 | $ | 38.7 | September 2023 |
As of December 31, | |||||||||||
2020 | 2019 | ||||||||||
(In millions) | |||||||||||
Other current liabilities | $ | 2.8 | $ | 0.9 | |||||||
Other long-term liabilities | 4.4 | 2.9 | |||||||||
Total fair value | $ | 7.2 | $ | 3.8 |
For the Year Ended December 31, |
Results Recognized in Accumulated Other Comprehensive Loss
(Effective Portion) |
Location of Results Reclassified from Accumulated Other Comprehensive Loss
to Earnings
|
Results Reclassified from Accumulated Other Comprehensive Loss
to Earnings |
|||||||||||||||||
2020 | $ | (6.1) | Other interest expense, net | $ | (2.5) | |||||||||||||||
2019 | $ | (4.4) | Other interest expense, net | $ | — | |||||||||||||||
2018 | $ | 1.8 | Swap interest expense | $ | (0.5) |
For the Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(In millions) | |||||||||||||||||
Current: | |||||||||||||||||
Federal | $ | 64.5 | $ | 46.3 | $ | 43.8 | |||||||||||
State | 9.8 | 8.0 | 7.1 | ||||||||||||||
Total current income tax expense | 74.3 | 54.3 | 50.9 | ||||||||||||||
Deferred: | |||||||||||||||||
Federal | 9.2 | 5.5 | 3.9 | ||||||||||||||
State | 0.2 | (0.3) | 2.0 | ||||||||||||||
Total deferred income tax expense | 9.4 | 5.2 | 5.9 | ||||||||||||||
Total income tax expense | $ | 83.7 | $ | 59.5 | $ | 56.8 |
For the Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2020 | % | 2019 | % | 2018 | % | ||||||||||||||||||||||||||||||
Income tax provision at the statutory rate | $ | 71.0 | 21.0 | $ | 51.2 | 21.0 | $ | 47.2 | 21.0 | ||||||||||||||||||||||||||
State income tax expense, net of federal benefit | 10.1 | 3.0 | 7.8 | 3.2 | 8.7 | 3.9 | |||||||||||||||||||||||||||||
Non-deductible / non-tax items | 1.3 | 0.4 | 0.6 | 0.2 | 0.4 | 0.2 | |||||||||||||||||||||||||||||
Effect of enactment of tax reform | — | — | — | — | 0.6 | 0.2 | |||||||||||||||||||||||||||||
Other, net | 1.3 | 0.4 | (0.1) | — | (0.1) | — | |||||||||||||||||||||||||||||
Income tax expense | $ | 83.7 | 24.8 | $ | 59.5 | 24.4 | $ | 56.8 | 25.3 |
As of December 31, | |||||||||||
2020 | 2019 | ||||||||||
(In millions) | |||||||||||
Deferred income tax assets: | |||||||||||
F&I chargeback liabilities | $ | 11.5 | $ | 11.8 | |||||||
Other accrued liabilities | 4.7 | 2.1 | |||||||||
Stock-based compensation | 2.3 | 2.2 | |||||||||
Operating lease right-of-use assets | 77.8 | 18.7 | |||||||||
Other, net | 10.2 | 9.0 | |||||||||
Total deferred income tax assets | 106.5 | 43.8 | |||||||||
Deferred income tax liabilities: | |||||||||||
Intangible asset amortization | (23.9) | (16.4) | |||||||||
Depreciation | (39.2) | (33.4) | |||||||||
Operating lease liabilities | (76.8) | (17.7) | |||||||||
Other, net | (1.2) | (2.3) | |||||||||
Total deferred income tax liabilities | (141.1) | (69.8) | |||||||||
Net deferred income tax liabilities | $ | (34.6) | $ | (26.0) |
As of December 31, | |||||||||||
2020 | 2019 | ||||||||||
(In millions) | |||||||||||
Accrued finance and insurance chargebacks | $ | 22.9 | $ | 22.9 | |||||||
Deferred payroll tax | 9.1 | — | |||||||||
Sale and leaseback liability | 7.0 | — | |||||||||
Interest rate swap | 4.4 | 2.9 | |||||||||
Unclaimed property | 3.1 | 2.9 | |||||||||
Other | 4.4 | 3.7 | |||||||||
Other long-term liabilities | $ | 50.9 | $ | 32.4 |
For the Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Amortization of debt issuance costs | $ | 1.8 | $ | 2.5 | $ | 2.5 | |||||||||||
Loss on disposal of fixed assets | 0.7 | 2.6 | 0.9 | ||||||||||||||
Other individually immaterial items | (1.2) | (0.3) | (0.3) | ||||||||||||||
Other adjustments, net | $ | 1.3 | $ | 4.8 | $ | 3.1 |
As of December 31, | ||||||||||||||||||||
Leases | Classification | 2020 | 2019 | |||||||||||||||||
(In millions) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Current | ||||||||||||||||||||
Operating | Operating lease right-of-use assets | 317.4 | 65.6 | |||||||||||||||||
Operating | Assets held for sale | — | 6.9 | |||||||||||||||||
Non-Current | ||||||||||||||||||||
Finance | Property and equipment, net | 14.6 | 14.6 | |||||||||||||||||
Total right-of-use assets | $ | 332.0 | $ | 87.1 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||
Current | ||||||||||||||||||||
Operating | Current maturities of operating leases | 24.8 | 17.0 | |||||||||||||||||
Operating | Liabilities held for sale | — | 4.2 | |||||||||||||||||
Finance | Current maturities of long-term debt | 16.6 | 0.6 | |||||||||||||||||
Non-Current | ||||||||||||||||||||
Operating | Operating lease liabilities | 296.7 | 52.6 | |||||||||||||||||
Operating | Liabilities held for sale | — | 2.7 | |||||||||||||||||
Finance | Long-term debt | — | 16.6 | |||||||||||||||||
Total lease liabilities | $ | 338.1 | $ | 93.7 |
As of December 31, | |||||||||||
2020 | 2019 | ||||||||||
Weighted Average Lease Term - Operating Leases | 14.3 years | 5.7 years | |||||||||
Weighted Average Lease Term - Finance Lease | 0.2 years | 1.2 years | |||||||||
Weighted Average Discount Rate - Operating Leases | 4.5 | % | 4.7 | % | |||||||
Weighted Average Discount Rate - Finance Lease | 4.1 | % | 4.1 | % |
For the Year Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
(In millions) | |||||||||||
Finance lease cost (Interest) | $ | 0.7 | $ | 0.7 | |||||||
Operating lease cost | 28.2 | 23.3 | |||||||||
Short-term lease cost | 1.5 | 2.7 | |||||||||
Variable lease cost | 2.4 | 1.0 | |||||||||
$ | 32.8 | $ | 27.7 |
For the Year Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
(In millions) | |||||||||||
Supplemental Cash Flow: | |||||||||||
Cash paid for amounts included in the measurements of lease liabilities | |||||||||||
Operating cash flows from finance lease | $ | 0.7 | $ | 0.7 | |||||||
Operating cash flows from operating leases | $ | 27.6 | $ | 23.7 | |||||||
Financing cash flows from finance lease | $ | 0.6 | $ | 0.4 | |||||||
Right-of-use assets obtained in exchange for new finance lease liabilities | $ | — | $ | 17.7 | |||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 272.3 | $ | 14.4 | |||||||
Changes to finance lease right-of-use asset resulting from lease reassessment event | $ | — | $ | (3.1) |
Finance | Operating | ||||||||||
(In millions) | |||||||||||
2021 | $ | 16.7 | $ | 38.2 | |||||||
2022 | — | 37.4 | |||||||||
2023 | — | 33.7 | |||||||||
2024 | — | 30.3 | |||||||||
2025 | — | 29.3 | |||||||||
Thereafter | — | 277.5 | |||||||||
Total minimum lease payments | $ | 16.7 | $ | 446.4 | |||||||
Less: Amount of lease payments representing interest | (0.1) | (124.9) | |||||||||
Present value of future minimum lease payments | $ | 16.6 | $ | 321.5 | |||||||
Less: current obligations under leases | (16.6) | (24.8) | |||||||||
Long-term lease obligation | $ | — | $ | 296.7 |
Shares |
Weighted Average Grant Date
Fair Value |
||||||||||
Non-vested at January 1, 2020 | 205,290 | $ | 66.92 | ||||||||
Granted | 107,798 | 96.31 | |||||||||
Vested | (75,587) | 65.20 | |||||||||
Forfeited or unearned | (43,015) | 69.16 | |||||||||
Non-vested at December 31, 2020 | 194,486 | $ | 82.70 |
For the Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Weighted average grant-date fair value of performance share units granted | $ | 96.31 | $ | 69.67 | $ | 68.50 | |||||||||||
Total fair value of performance share units vested (in millions) | $ | 4.9 | $ | 6.0 | $ | 6.4 |
Shares |
Weighted Average Grant
Date Fair Value |
||||||||||
Non-vested at January 1, 2020 | — | $ | — | ||||||||
Granted | 109,062 | 94.07 | |||||||||
Vested | (2,908) | 95.66 | |||||||||
Forfeited | (3,561) | 95.66 | |||||||||
Non-vested at December 31, 2020 | 102,593 | 93.97 |
For the Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Weighted average grant-date fair value of restricted stock units granted | $ | 94.07 | $ | — | $ | — | |||||||||||
Total fair value of restricted stock units vested (in millions) | $ | 0.3 | $ | — | $ | — |
Shares |
Weighted Average Grant
Date Fair Value |
||||||||||
Non-vested at January 1, 2020 | 203,471 | $ | 68.06 | ||||||||
Granted | — | — | |||||||||
Vested | (76,646) | 67.13 | |||||||||
Forfeited | (28,195) | 68.49 | |||||||||
Non-vested at December 31, 2020 | 98,630 | $ | 68.66 |
For the Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Weighted average grant-date fair value of restricted stock granted | $ | — | $ | 69.18 | $ | 71.18 | |||||||||||
Total fair value of restricted stock awards vested (in millions) | $ | 5.1 | $ | 5.1 | $ | 5.5 |
Exhibit
Number |
Description of Documents | |||||||
Asset Purchase Agreement, dated July 6, 2020, by and among the identified sellers, the identified seller affiliate, the identified principal, the identified real estate owners and Asbury Automotive Group, LLC (Portions of this exhibit have been omitted pursuant to Item 601(b)(2) of Regulation S-K because they (i) are not material and (ii) would likely cause competitive harm to the Company if publicly disclosed. The Company agrees to furnish supplementally to the Commission an unredacted copy of this exhibit upon request.) (incorporated by reference to Exhibit 2.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 filed on July 31, 2020)* | ||||||||
Amended and Restated Certificate of Incorporation of Asbury Automotive Group, Inc. (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K, filed with the SEC on April 25, 2016)*
|
||||||||
Bylaws of Asbury Automotive Group, Inc. (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed with the SEC on April 21, 2014)*
|
||||||||
Indenture relating to the Senior Notes due 2028, dated as of February 19, 2020, among Asbury Automotive Group, Inc., each of the Guarantors named therein and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed with the SEC on February 20, 2020)*
|
||||||||
Form of 4.50% Senior Note due 2028 (included as Exhibit A in Exhibit 4.1 to the Company's Current Report on Form 8-K filed with the SEC on February 20, 2020)*
|
||||||||
Indenture relating to the Senior Notes due 2030, dated as of February 19, 2020, among Asbury Automotive Group, Inc., each of the Guarantors named therein and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed with the SEC on February 20, 2020)*
|
||||||||
Form of 4.75% Senior Note due 2030 (included as Exhibit A in Exhibit 4.2 to the Company's Current Report on Form 8-K filed with the SEC on February 20, 2020)*
|
||||||||
Officer’s Certificate of Asbury Automotive Group, Inc. pursuant to the 2028 Notes Indenture, dated September 16, 2020 (incorporated by reference to Exhibit 4.3 of the Company's Current Report on Form 8-K filed on September 16, 2020)* | ||||||||
Officer’s Certificate of Asbury Automotive Group, Inc. pursuant to the 2030 Notes Indenture, dated September 16, 2020 (incorporated by reference to Exhibit 4.4 of the Company's Current Report on Form 8-K filed on September 16, 2020)* | ||||||||
Registration Rights Agreement relating to the 2028 Notes, dated September 16, 2020, among Asbury Automotive Group, Inc., the guarantors party thereto and BofA Securities, Inc., as representative of the Initial Purchasers (incorporated by reference to Exhibit 4.7 of the Company's Current Report on Form 8-K filed on September 16, 2020)*
|
||||||||
Registration Rights Agreement relating to the 2030 Notes, dated September 16, 2020, among Asbury Automotive Group, Inc., the guarantors party thereto and BofA Securities, Inc., as representative of the Initial Purchasers (incorporated by reference to Exhibit 4.8 of the Company's Current Report on Form 8-K filed on September 16, 2020)*
|
||||||||
Description of Registrant's Securities |
Amended and Restated 2002 Equity Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on February 14, 2012)*
|
||||||||
2012 Equity Incentive Plan (incorporated by reference to Appendix A to the Company's Definitive Proxy Statement on Schedule 14A filed with the SEC on March 16, 2012)* | ||||||||
First Amendment to 2012 Equity Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on January 27, 2017)*
|
||||||||
Amended and Restated Key Executive Incentive Compensation Plan (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed with the SEC on May 4, 2009)*
|
||||||||
Amendment No. 1 to Amended and Restated Key Executive Incentive Compensation Plan (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2018)* | ||||||||
Form of Officer/Director Indemnification Agreement (incorporated by reference to Exhibit 10.7 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2010)*
|
||||||||
Employment Agreement between Asbury Automotive Group, Inc. and David W. Hult, dated as of October 23, 2014 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on October 23, 2014)* | ||||||||
First Amendment to Employment Agreement between Asbury Automotive Group, Inc. and David W. Hult, dated as of August 21, 2017 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on August 22, 2017)* | ||||||||
Second Amendment to Employment Agreement between Asbury Automotive Group, Inc., dated as of June 5, 2020 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on June 5, 2020)* | ||||||||
Amended and Restated Severance Pay Agreement for Key Employee between Asbury Automotive Group, Inc. and George A. Villasana, dated as of February 21, 2017 (incorporated by reference to Exhibit 10.12 to the Company's Annual Report on Form 10-K for the year ended December 31, 2016)*
|
||||||||
Severance Pay Agreement for Key Employee between Asbury Automotive Group, Inc. and Jed M. Milstein, dated as of February 21, 2017 (incorporated by reference to Exhibit 10.13 to the Company's Annual Report on Form 10-K for the year ended December 31, 2016)* | ||||||||
Severance Pay Agreement for Key Employee between Asbury Automotive Group, Inc. and William F. Stax, dated as of February 21, 2017 (incorporated by reference to Exhibit 10.14 to the Company's Annual Report on Form 10-K for the year ended December 31, 2016)*
|
||||||||
Severance Pay Agreement for Key Employee between Asbury Automotive Group, Inc. and Patrick J. Guido, dated as of May 11, 2020 | ||||||||
2019 Equity and Incentive Plan (incorporated by reference to Appendix A to the Company's Definitive Proxy Statement on Schedule 14A filed with the SEC on March 14, 2019)* | ||||||||
Form of Equity Award Agreement under the 2019 Equity and Incentive Plan | ||||||||
Asbury Automotive Group, Inc. Deferred Compensation Plan (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on October 23, 2017)* | ||||||||
Credit Agreement, dated as of September 26, 2013, among Asbury Automotive Group, Inc., certain of subsidiaries of Asbury Automotive Group, Inc. and Bank of America, N.A. (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8‑K filed with the SEC on September 30, 2013)*
|
||||||||
Third Amended and Restated Credit Agreement, dated as of September 25, 2019, 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 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on September 26, 2019)*
|
Third Amended and Restated Company Guaranty Agreement, dated as of September 25, 2019, between Asbury Automotive Group, Inc. and Bank of America, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed with the SEC on September 26, 2019)*
|
||||||||
Third Amended and Restated Subsidiary Guaranty Agreement, dated as of September 25, 2019, among certain subsidiaries of Asbury Automotive Group, Inc. and Bank of America, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K filed with the SEC on September 26, 2019)*
|
||||||||
Third Amended and Restated Security Agreement, dated as of September 25, 2019, among Asbury Automotive Group, Inc., certain of its subsidiaries and Bank of America, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.4 to the Company's Current Report on Form 8-K filed with the SEC on September 26, 2019)*
|
||||||||
Third Amended and Restated Escrow and Security Agreement, dated as of September 25, 2019, among Asbury Automotive Group, Inc., certain of its subsidiaries and Bank of America, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.5 to the Company's Current Report on Form 8-K filed with the SEC on September 26, 2019)*
|
||||||||
Third Amended and Restated Securities Pledge Agreement, dated as of September 25, 2019, among Asbury Automotive Group, Inc., certain of its subsidiaries and Bank of America, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.6 to the Company's Current Report on Form 8-K filed with the SEC on September 26, 2019)* | ||||||||
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 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on February 3, 2020)*
|
||||||||
Second Amendment to the Third Amended and Restated Credit Agreement, dated August 10, 2020, among Asbury Automotive Group, Inc., as a borrower, certain of its subsidiaries, as vehicle borrowers, the other guarantors party thereto, the other lenders party thereto and Bank of America, N.A., as administrative agent, revolving swing line lender, new vehicle floorplan swing line lender, used vehicle floorplan swing line lender and an l/c issuer (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2020)* | ||||||||
Amended and Restated Master Loan Agreement, dated as of February 3, 2015, by and among certain subsidiaries of Asbury Automotive Group, Inc. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on February 4, 2015)* | ||||||||
Second Amended and Restated Unconditional Guaranty, dated as of February 3, 2015, by and between Asbury Automotive Group, Inc. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed with the SEC on February 4, 2015)* | ||||||||
Credit Agreement, dated as of November 13, 2018, among Asbury Automotive Group, Inc., certain subsidiaries of Asbury Automotive Group, Inc. and Bank of America, N.A. (incorporated by reference to Exhibit 10.33 to the Company's Annual Report on Form 10-K for the year ended December 31, 2018)*
|
||||||||
Master Loan Agreement, dated as of November 16, 2018, by and among certain subsidiaries of Asbury Automotive Group, Inc. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 10.34 to the Company's Annual Report on Form 10-K for the year ended December 31, 2018)* | ||||||||
Unconditional Guaranty, dated as of November 16, 2018, between Asbury Automotive Group, Inc. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 10.35 to the Company's Annual Report on Form 10-K for the year ended December 31, 2018)* | ||||||||
First Amendment to Master Loan Agreement, dated as of December 31, 2019, by and among certain subsidiaries of Asbury Automotive Group, Inc. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 10.41 to the Company's Annual Report on Form 10-K for the year ended December 31, 2019)* | ||||||||
Credit Agreement, dated as of February 7, 2020, by and among certain subsidiaries of Asbury Automotive Group, Inc. and Bank of America, N.A. (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on February 13, 2020)* |
Asbury Automotive Group, Inc. | ||||||||||||||
Date: | March 1, 2021 | By: | /s/ David W. Hult | |||||||||||
Name: | David W. Hult | |||||||||||||
Title: | Chief Executive Officer and President |
Signature | Title | Date | ||||||||||||
/s/ David W. Hult | Chief Executive Officer, President and Director | March 1, 2021 | ||||||||||||
(David W. Hult) | ||||||||||||||
/s/ Patrick J. Guido | Senior Vice President and Chief Financial Officer | March 1, 2021 | ||||||||||||
(Patrick J. Guido) | ||||||||||||||
/s/ William F. Stax | Vice President, Controller and | March 1, 2021 | ||||||||||||
(William F. Stax) | Chief Accounting Officer | |||||||||||||
/s/ Thomas J. Reddin | Director | March 1, 2021 | ||||||||||||
(Thomas J. Reddin) | Non-Executive Chairman of the Board | |||||||||||||
/s/ Joel Alsfine | Director | March 1, 2021 | ||||||||||||
(Joel Alsfine) | ||||||||||||||
/s/ Thomas C. DeLoach, Jr. | Director | March 1, 2021 | ||||||||||||
(Thomas C. DeLoach, Jr.) | ||||||||||||||
/s/ William D. Fay | Director | March 1, 2021 | ||||||||||||
(William D. Fay) | ||||||||||||||
/s/ Juanita T. James | Director | March 1, 2021 | ||||||||||||
(Juanita T. James) | ||||||||||||||
/s/ Philip F. Maritz | Director | March 1, 2021 | ||||||||||||
(Philip F. Maritz) | ||||||||||||||
/s/ Maureen F. Morrison | Director | March 1, 2021 | ||||||||||||
(Maureen F. Morrison) | ||||||||||||||
/s/ Bridget M. Ryan-Berman | Director | March 1, 2021 | ||||||||||||
(Bridget M. Ryan-Berman) |
Exhibit
Number |
Description of Documents | |||||||
2.1 | Asset Purchase Agreement, dated July 6, 2020, by and among the identified sellers, the identified seller affiliate, the identified principal, the identified real estate owners and Asbury Automotive Group, LLC (Portions of this exhibit have been omitted pursuant to Item 601(b)(2) of Regulation S-K because they (i) are not material and (ii) would likely cause competitive harm to the Company if publicly disclosed. The Company agrees to furnish supplementally to the Commission an unredacted copy of this exhibit upon request.) (incorporated by reference to Exhibit 2.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 filed on July 31, 2020)* | |||||||
3.1 | Amended and Restated Certificate of Incorporation of Asbury Automotive Group, Inc. (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K, filed with the SEC on April 25, 2016)* | |||||||
3.2 | Bylaws of Asbury Automotive Group, Inc. (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed with the SEC on April 21, 2014)* | |||||||
4.1 |
Indenture relating to the Senior Notes due 2028, dated as of February 19, 2020, among Asbury Automotive Group, Inc., each of the Guarantors named therein and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed with the SEC on February 20, 2020)*
|
|||||||
4.2 | Form of 4.50% Senior Note due 2028 (included as Exhibit A in Exhibit 4.1 to the Company's Current Report on Form 8-K filed with the SEC on February 20, 2020)* | |||||||
4.3 |
Indenture relating to the Senior Notes due 2030, dated as of February 19, 2020, among Asbury Automotive Group, Inc., each of the Guarantors named therein and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed with the SEC on February 20, 2020)*
|
|||||||
4.4 | Form of 4.75% Senior Note due 2030 (included as Exhibit A in Exhibit 4.2 to the Company's Current Report on Form 8-K filed with the SEC on February 20, 2020)* | |||||||
4.5 | Officer’s Certificate of Asbury Automotive Group, Inc. pursuant to the 2028 Notes Indenture, dated September 16, 2020 (incorporated by reference to Exhibit 4.3 of the Company's Current Report on Form 8-K filed on September 16, 2020)* | |||||||
4.6 | Officer’s Certificate of Asbury Automotive Group, Inc. pursuant to the 2030 Notes Indenture, dated September 16, 2020 (incorporated by reference to Exhibit 4.4 of the Company's Current Report on Form 8-K filed on September 16, 2020)* | |||||||
4.7 |
Registration Rights Agreement relating to the 2028 Notes, dated September 16, 2020, among Asbury Automotive Group, Inc., the guarantors party thereto and BofA Securities, Inc., as representative of the Initial Purchasers (incorporated by reference to Exhibit 4.7 of the Company's Current Report on Form 8-K filed on September 16, 2020)*
|
|||||||
4.8 |
Registration Rights Agreement relating to the 2030 Notes, dated September 16, 2020, among Asbury Automotive Group, Inc., the guarantors party thereto and BofA Securities, Inc., as representative of the Initial Purchasers (incorporated by reference to Exhibit 4.8 of the Company's Current Report on Form 8-K filed on September 16, 2020)*
|
|||||||
4.9 | Description of Registrant's Securities | |||||||
10.1** | Amended and Restated 2002 Equity Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on February 14, 2012)* | |||||||
10.2** | 2012 Equity Incentive Plan (incorporated by reference to Appendix A to the Company's Definitive Proxy Statement on Schedule 14A filed with the SEC on March 16, 2012)* | |||||||
10.3** |
First Amendment to 2012 Equity Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on January 27, 2017)*
|
|||||||
10.4** |
Amended and Restated Key Executive Incentive Compensation Plan (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed with the SEC on May 4, 2009)*
|
10.5** | Amendment No. 1 to Amended and Restated Key Executive Incentive Compensation Plan (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2018)* | |||||||
10.6** | Form of Officer/Director Indemnification Agreement (incorporated by reference to Exhibit 10.7 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2010)* | |||||||
10.7** | Employment Agreement between Asbury Automotive Group, Inc. and David W. Hult, dated as of October 23, 2014 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on October 23, 2014)* | |||||||
10.8** | First Amendment to Employment Agreement between Asbury Automotive Group, Inc. and David W. Hult, dated as of August 21, 2017 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on August 22, 2017)* | |||||||
10.9** | Second Amendment to Employment Agreement between Asbury Automotive Group, Inc., dated as of June 5, 2020 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on June 5, 2020)* | |||||||
10.10** | Amended and Restated Severance Pay Agreement for Key Employee between Asbury Automotive Group, Inc. and George A. Villasana, dated as of February 21, 2017 (incorporated by reference to Exhibit 10.12 to the Company's Annual Report on Form 10-K for the year ended December 31, 2016)* | |||||||
10.11** | Severance Pay Agreement for Key Employee between Asbury Automotive Group, Inc. and Jed M. Milstein, dated as of February 21, 2017 (incorporated by reference to Exhibit 10.13 to the Company's Annual Report on Form 10-K for the year ended December 31, 2016)* | |||||||
10.12** | Severance Pay Agreement for Key Employee between Asbury Automotive Group, Inc. and William F. Stax, dated as of February 21, 2017 (incorporated by reference to Exhibit 10.14 to the Company's Annual Report on Form 10-K for the year ended December 31, 2016)* | |||||||
10.13** | Severance Pay Agreement for Key Employee between Asbury Automotive Group, Inc. and Patrick J. Guido, dated as of May 11, 2020 | |||||||
10.14** | 2019 Equity and Incentive Plan (incorporated by reference to Appendix A to the Company's Definitive Proxy Statement on Schedule 14A filed with the SEC on March 14, 2019)* | |||||||
10.15** | Form of Equity Award Agreement under the 2019 Equity and Incentive Plan | |||||||
10.16** | Asbury Automotive Group, Inc. Deferred Compensation Plan (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on October 23, 2017)* | |||||||
10.17 | Credit Agreement, dated as of September 26, 2013, among Asbury Automotive Group, Inc., certain of subsidiaries of Asbury Automotive Group, Inc. and Bank of America, N.A. (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8‑K filed with the SEC on September 30, 2013)* | |||||||
10.18 | Third Amended and Restated Credit Agreement, dated as of September 25, 2019, 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 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on September 26, 2019)* | |||||||
10.19 | Third Amended and Restated Company Guaranty Agreement, dated as of September 25, 2019, between Asbury Automotive Group, Inc. and Bank of America, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed with the SEC on September 26, 2019)* | |||||||
10.20 | Third Amended and Restated Subsidiary Guaranty Agreement, dated as of September 25, 2019, among certain subsidiaries of Asbury Automotive Group, Inc. and Bank of America, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K filed with the SEC on September 26, 2019)* | |||||||
10.21 | Third Amended and Restated Security Agreement, dated as of September 25, 2019, among Asbury Automotive Group, Inc., certain of its subsidiaries and Bank of America, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.4 to the Company's Current Report on Form 8-K filed with the SEC on September 26, 2019)* |
10.22 | Third Amended and Restated Escrow and Security Agreement, dated as of September 25, 2019, among Asbury Automotive Group, Inc., certain of its subsidiaries and Bank of America, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.5 to the Company's Current Report on Form 8-K filed with the SEC on September 26, 2019)* | |||||||
10.23 | Third Amended and Restated Securities Pledge Agreement, dated as of September 25, 2019, among Asbury Automotive Group, Inc., certain of its subsidiaries and Bank of America, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.6 to the Company's Current Report on Form 8-K filed with the SEC on September 26, 2019)* | |||||||
10.24 | 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 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on February 3, 2020)* | |||||||
10.25 | Second Amendment to the Third Amended and Restated Credit Agreement, dated August 10, 2020, among Asbury Automotive Group, Inc., as a borrower, certain of its subsidiaries, as vehicle borrowers, the other guarantors party thereto, the other lenders party thereto and Bank of America, N.A., as administrative agent, revolving swing line lender, new vehicle floorplan swing line lender, used vehicle floorplan swing line lender and an l/c issuer (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2020)* | |||||||
10.26 | Amended and Restated Master Loan Agreement, dated as of February 3, 2015, by and among certain subsidiaries of Asbury Automotive Group, Inc. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on February 4, 2015)* | |||||||
10.27 | Second Amended and Restated Unconditional Guaranty, dated as of February 3, 2015, by and between Asbury Automotive Group, Inc. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed with the SEC on February 4, 2015)* | |||||||
10.28 | Credit Agreement, dated as of November 13, 2018, among Asbury Automotive Group, Inc., certain subsidiaries of Asbury Automotive Group, Inc. and Bank of America, N.A. (incorporated by reference to Exhibit 10.33 to the Company's Annual Report on Form 10-K for the year ended December 31, 2018)* | |||||||
10.29 | Master Loan Agreement, dated as of November 16, 2018, by and among certain subsidiaries of Asbury Automotive Group, Inc. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 10.34 to the Company's Annual Report on Form 10-K for the year ended December 31, 2018)* | |||||||
10.30 | Unconditional Guaranty, dated as of November 16, 2018, between Asbury Automotive Group, Inc. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 10.35 to the Company's Annual Report on Form 10-K for the year ended December 31, 2018)* | |||||||
10.31 | First Amendment to Master Loan Agreement, dated as of December 31, 2019, by and among certain subsidiaries of Asbury Automotive Group, Inc. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 10.41 to the Company's Annual Report on Form 10-K for the year ended December 31, 2019)* | |||||||
10.32 | Credit Agreement, dated as of February 7, 2020, by and among certain subsidiaries of Asbury Automotive Group, Inc. and Bank of America, N.A. (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on February 13, 2020)* | |||||||
10.33 | Amended and Restated Commitment Letter, dated as of December, 30, 2019, by and among Asbury Automotive Group, Inc., Bank of America, N.A., BofA Securities, Inc., JPMorgan Chase Bank, N.A., Wells Fargo Securities, LLC, Wells Fargo Bank, National Association, Santander Bank, N.A., SunTrust Robinson Humphrey, Inc., Trust Bank and U.S. Bank National Association (incorporated by reference to Exhibit 10.42 to the Company's Annual Report on Form 10-K for the year ended December 31, 2019)* | |||||||
21 | Subsidiaries of the Company | |||||||
23.1 | Consent of Ernst & Young LLP | |||||||
31.1 | Certificate of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a)of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
If to Asbury: | Asbury Automotive Group, Inc. | ||||
c/o The Office of the General Counsel | |||||
2905 Premiere Parkway, Suite 300 | |||||
Duluth, GA 30097 | |||||
If to Executive: | To the most recent address of Executive set forth in the | ||||
personnel records of Asbury. |
EXECUTIVE: | ASBURY AUTOMOTIVE GROUP, INC. | |||||||
/s/ Patrick J. Guido
|
/s/ David W. Hult
|
|||||||
Name: Patrick J. Guido | Name: David W. Hult | |||||||
Title: SVP & CFO
|
Title: President & CEO |
“Vesting Date” for RSUs | Percentage of RSUs Vested | ||||
First anniversary of the Date of Grant (or in the case of PSUs, the Determination Date, whichever is later) | 33.33% | ||||
Second anniversary of the Date of Grant | 33.33% | ||||
Third anniversary of the Date of Grant | 33.34% |
If to the Company: |
Asbury Automotive Group, Inc.
2905 Premiere Parkway NW, Suite 300 Duluth, GA 30097 Attention: General Counsel |
||||
If to the Grantee: |
At the then-current address shown on the
payroll of the Company. |
Entity Name | Domestic State | Foreign Qualification | ||||||||||||
AF Motors, L.L.C. | DE | FL | ||||||||||||
ANL, L.P. | DE | FL | ||||||||||||
Arkansas Automotive Services, L.L.C. | DE | AR | ||||||||||||
Asbury AR Niss L.L.C. | DE | AR | ||||||||||||
Asbury Arlington MB, LLC | DE | TX | ||||||||||||
Asbury Atlanta AC L.L.C. | DE | GA | ||||||||||||
Asbury Atlanta AU L.L.C. | DE | GA | ||||||||||||
Asbury Atlanta BM L.L.C. | DE | GA | ||||||||||||
Asbury Atlanta CHEV, LLC | DE | GA | ||||||||||||
Asbury Atlanta Chevrolet L.L.C. | DE | |||||||||||||
Asbury Atlanta Ford, LLC | DE | GA | ||||||||||||
Asbury Atlanta Hon L.L.C. | DE | GA | ||||||||||||
Asbury Atlanta Hund L.L.C. | DE | GA | ||||||||||||
Asbury Atlanta Inf L.L.C. | DE | GA | ||||||||||||
Asbury Atlanta Infiniti L.L.C. | DE | GA | ||||||||||||
Asbury Atlanta Jaguar L.L.C. | DE | GA | ||||||||||||
Asbury Atlanta K L.L.C. | DE | GA | ||||||||||||
Asbury Atlanta Lex L.L.C. | DE | GA | ||||||||||||
Asbury Atlanta Nis II, LLC | DE | GA | ||||||||||||
Asbury Atlanta Nis L.L.C. | DE | GA | ||||||||||||
Asbury Atlanta Toy 2 L.L.C. | DE | GA | ||||||||||||
Asbury Atlanta Toy L.L.C. | DE | GA | ||||||||||||
Asbury Atlanta VB L.L.C. | DE | GA | ||||||||||||
Asbury Atlanta VL L.L.C. | DE | GA | ||||||||||||
Asbury Austin JLR, LLC | DE | TX | ||||||||||||
Asbury Automotive Arkansas Dealership Holdings L.L.C. | DE | AR, MS | ||||||||||||
Asbury Automotive Arkansas L.L.C. | DE | AR, MS | ||||||||||||
Asbury Automotive Atlanta II L.L.C. | DE | GA | ||||||||||||
Asbury Automotive Atlanta L.L.C. | DE | GA | ||||||||||||
Asbury Automotive Brandon, L.P. | DE | FL | ||||||||||||
Asbury Automotive Central Florida, L.L.C. | DE | FL | ||||||||||||
Asbury Automotive Deland, L.L.C. | DE | FL | ||||||||||||
Asbury Automotive Fresno L.L.C. | DE | |||||||||||||
Asbury Automotive Group L.L.C. | DE | CT, FL | ||||||||||||
Asbury Automotive Jacksonville GP L.L.C. | DE | FL | ||||||||||||
Asbury Automotive Jacksonville, L.P. | DE | FL | ||||||||||||
Asbury Automotive Management L.L.C. | DE | GA | ||||||||||||
Asbury Automotive Mississippi L.L.C. | DE | MS | ||||||||||||
Asbury Automotive North Carolina Dealership Holdings L.L.C. | DE | NC | ||||||||||||
Asbury Automotive North Carolina L.L.C. | DE | NC, SC, VA | ||||||||||||
Asbury Automotive North Carolina Management L.L.C. | DE | NC | ||||||||||||
Asbury Automotive North Carolina Real Estate Holdings L.L.C. | DE | NC, SC, VA | ||||||||||||
Asbury Automotive Oregon L.L.C. | DE | |||||||||||||
Asbury Automotive Southern California L.L.C. | DE |
Asbury Automotive St. Louis II L.L.C. | DE | MO | ||||||||||||
Asbury Automotive St. Louis, L.L.C. | DE | MO | ||||||||||||
Asbury Automotive Tampa GP L.L.C. | DE | FL | ||||||||||||
Asbury Automotive Tampa, L.P. | DE | FL | ||||||||||||
Asbury Automotive Texas L.L.C. | DE | TX | ||||||||||||
Asbury Automotive Texas Real Estate Holdings L.L.C. | DE | TX | ||||||||||||
Asbury Automotive West, LLC | DE | |||||||||||||
Asbury CH MOTORS L.L.C. | DE | FL | ||||||||||||
Asbury CO CDJR, LLC | DE | CO | ||||||||||||
Asbury CO SUB, LLC | DE | CO | ||||||||||||
Asbury Dallas BEN, LLC | DE | TX | ||||||||||||
Asbury Dallas KAR, LLC | DE | TX | ||||||||||||
Asbury Dallas MAS, LLC | DE | TX | ||||||||||||
Asbury Dallas MB, LLC | DE | TX | ||||||||||||
Asbury Dallas MCL, LLC | DE | TX | ||||||||||||
Asbury Dallas POR, LLC | DE | TX | ||||||||||||
Asbury Dallas RR, LLC | DE | TX | ||||||||||||
Asbury Dallas VOL, LLC | DE | TX | ||||||||||||
Asbury Deland Hund, LLC | DE | FL | ||||||||||||
Asbury Deland Imports 2, L.L.C. | DE | FL | ||||||||||||
Asbury DFW JLR, LLC | DE | TX | ||||||||||||
Asbury Fort Worth MB, LLC | DE | TX | ||||||||||||
Asbury Fresno Imports L.L.C. | DE | |||||||||||||
Asbury Ft. Worth Ford, LLC | DE | TX | ||||||||||||
Asbury Georgia TOY, LLC | DE | GA | ||||||||||||
Asbury Grapevine LEX, LLC | DE | TX | ||||||||||||
Asbury IN CBG, LLC | DE | IN | ||||||||||||
Asbury IN CDJ, LLC | DE | IN | ||||||||||||
Asbury In Chev, LLC | DE | IN | ||||||||||||
Asbury In Ford, LLC | DE | IN | ||||||||||||
Asbury In Hon, LLC | DE | IN | ||||||||||||
Asbury IN TOY, LLC | DE | IN | ||||||||||||
Asbury Indy Chev, LLC | DE | IN | ||||||||||||
Asbury Jax AC, LLC | DE | FL | ||||||||||||
Asbury Jax Ford, LLC | DE | FL | ||||||||||||
Asbury Jax Holdings, L.P. | DE | FL | ||||||||||||
Asbury Jax Hon L.L.C. | DE | FL | ||||||||||||
Asbury Jax K L.L.C. | DE | FL | ||||||||||||
Asbury Jax Management L.L.C. | DE | FL | ||||||||||||
Asbury Jax VW L.L.C. | DE | FL | ||||||||||||
Asbury Management Services, LLC | DE | AZ, AR, FL, GA, IN, MS, MO, NC, OH, PA, SC, TX, VA | ||||||||||||
Asbury MS CHEV L.L.C. | DE | IN, MS | ||||||||||||
Asbury MS Gray-Daniels L.L.C. | DE | MS | ||||||||||||
Asbury No Cal Niss L.L.C. | DE | |||||||||||||
Asbury Plano LEX, LLC | DE | TX |
Asbury Sacramento Imports L.L.C. | DE | |||||||||||||
Asbury SC JPV L.L.C. | DE | SC | ||||||||||||
Asbury SC Lex L.L.C. | DE | SC | ||||||||||||
Asbury SC Toy L.L.C. | DE | SC | ||||||||||||
Asbury So Cal DC L.L.C. | DE | |||||||||||||
Asbury So Cal Hon L.L.C. | DE | |||||||||||||
Asbury So Cal Niss L.L.C. | DE | |||||||||||||
Asbury South Carolina Real Estate Holdings L.L.C. | DE | SC | ||||||||||||
Asbury St. Louis Cadillac L.L.C. | DE | MO | ||||||||||||
Asbury St. Louis FSKR, L.L.C. | DE | MO | ||||||||||||
Asbury St. Louis Lex L.L.C. | DE | MO | ||||||||||||
Asbury St. Louis LR L.L.C. | DE | MO | ||||||||||||
Asbury St. Louis M L.L.C. | DE | MO | ||||||||||||
Asbury Tampa Management L.L.C. | DE | FL | ||||||||||||
Asbury Texas D FSKR, L.L.C. | DE | TX | ||||||||||||
Asbury Texas H FSKR, L.L.C. | DE | TX | ||||||||||||
Asbury TX Auction, LLC | DE | TX | ||||||||||||
Asbury-Deland Imports, L.L.C. | DE | FL | ||||||||||||
Atlanta Real Estate Holdings L.L.C. | DE | GA | ||||||||||||
Avenues Motors, Ltd. | FL | |||||||||||||
Bayway Financial Services, L.P. | DE | FL | ||||||||||||
BFP Motors L.L.C. | DE | FL | ||||||||||||
C & O Properties, Ltd. | FL | |||||||||||||
Camco Finance II L.L.C. | DE | NC, SC, VA | ||||||||||||
CFP Motors L.L.C. | DE | FL | ||||||||||||
CH Motors L.L.C. | DE | FL | ||||||||||||
CHO Partnership, Ltd. | FL | |||||||||||||
CK Chevrolet L.L.C. | DE | FL | ||||||||||||
CK Motors LLC | DE | FL | ||||||||||||
CN Motors L.L.C. | DE | FL | ||||||||||||
Coggin Automotive Corp. | FL | |||||||||||||
Coggin Cars L.L.C. | DE | FL | ||||||||||||
Coggin Chevrolet L.L.C. | DE | FL | ||||||||||||
Coggin Management, L.P. | DE | FL | ||||||||||||
CP-GMC Motors L.L.C. | DE | FL | ||||||||||||
Crown Acura/Nissan, LLC | NC | |||||||||||||
Crown CHH L.L.C. | DE | NC | ||||||||||||
Crown CHO L.L.C. | DE | NC | ||||||||||||
Crown CHV L.L.C. | DE | NC | ||||||||||||
Crown FDO L.L.C. | DE | NC | ||||||||||||
Crown FFO Holdings L.L.C. | DE | NC | ||||||||||||
Crown FFO L.L.C. | DE | NC | ||||||||||||
Crown GAC L.L.C. | DE | NC | ||||||||||||
Crown GBM L.L.C. | DE | NC | ||||||||||||
Crown GCA L.L.C. | DE | NC | ||||||||||||
Crown GDO L.L.C. | DE | NC | ||||||||||||
Crown GHO L.L.C. | DE | NC |
Crown GNI L.L.C. | DE | NC | ||||||||||||
Crown GPG L.L.C. | DE | NC | ||||||||||||
Crown GVO L.L.C. | DE | NC | ||||||||||||
Crown Honda, LLC | NC | |||||||||||||
Crown Motorcar Company L.L.C. | DE | VA | ||||||||||||
Crown PBM L.L.C. | DE | |||||||||||||
Crown RIA L.L.C. | DE | VA | ||||||||||||
Crown RIB L.L.C. | DE | VA | ||||||||||||
Crown SJC L.L.C. | DE | SC | ||||||||||||
Crown SNI L.L.C. | DE | SC | ||||||||||||
CSA Imports L.L.C. | DE | FL | ||||||||||||
Escude-NN L.L.C. | DE | MS | ||||||||||||
Escude-NS L.L.C. | DE | MS | ||||||||||||
Escude-T L.L.C. | DE | MS | ||||||||||||
Florida Automotive Services L.L.C. | DE | FL | ||||||||||||
HFP Motors L.L.C. | DE | FL | ||||||||||||
JC Dealer Systems, LLC | DE | FL | ||||||||||||
KP Motors L.L.C. | DE | FL | ||||||||||||
McDavid Austin-Acra L.L.C. | DE | TX | ||||||||||||
McDavid Frisco-Hon L.L.C. | DE | TX | ||||||||||||
McDavid Grande L.L.C. | DE | TX | ||||||||||||
McDavid Houston-Hon, L.L.C. | DE | TX | ||||||||||||
McDavid Houston-Niss, L.L.C. | DE | TX | ||||||||||||
McDavid Irving-Hon, L.L.C. | DE | TX | ||||||||||||
McDavid Outfitters, L.L.C. | DE | TX | ||||||||||||
McDavid Plano-Acra, L.L.C. | DE | TX | ||||||||||||
Mid-Atlantic Automotive Services, L.L.C. | DE | NC, SC, VA | ||||||||||||
Mississippi Automotive Services, L.L.C. | DE | MS | ||||||||||||
Missouri Automotive Services, L.L.C. | DE | MO | ||||||||||||
NP FLM L.L.C. | DE | AR | ||||||||||||
NP MZD L.L.C. | DE | AR | ||||||||||||
NP VKW L.L.C. | DE | AR | ||||||||||||
Plano Lincoln-Mercury, Inc. | DE | TX | ||||||||||||
Precision Computer Services, Inc. | FL | |||||||||||||
Precision Enterprises Tampa, Inc. | FL | |||||||||||||
Precision Infiniti, Inc. | FL | |||||||||||||
Precision Motorcars, Inc. | FL | |||||||||||||
Precision Nissan, Inc. | FL | |||||||||||||
Premier NSN L.L.C. | DE | AR | ||||||||||||
Premier Pon L.L.C. | DE | AR | ||||||||||||
Prestige Bay L.L.C. | DE | AR | ||||||||||||
Prestige Toy L.L.C. | DE | AR | ||||||||||||
Q Automotive Brandon FL, LLC | DE | FL | ||||||||||||
Q Automotive Cumming GA, LLC | DE | GA | ||||||||||||
Q Automotive Ft. Myers FL, LLC | DE | FL | ||||||||||||
Q Automotive Group L.L.C. | DE | FL | ||||||||||||
Q Automotive Holiday FL, LLC | DE | FL |
Q Automotive Jacksonville FL, LLC | DE | FL | ||||||||||||
Q Automotive Kennesaw GA, LLC | DE | GA | ||||||||||||
Q Automotive Orlando FL, LLC | DE | FL | ||||||||||||
Q Automotive Tampa FL, LLC | DE | FL | ||||||||||||
Southern Atlantic Automotive Services, L.L.C. | DE | GA, SC | ||||||||||||
Tampa Hund, L.P. | DE | FL | ||||||||||||
Tampa Kia, L.P. | DE | FL | ||||||||||||
Tampa LM, L.P. | DE | |||||||||||||
Tampa Mit, L.P. | DE | |||||||||||||
Texas Automotive Services, L.L.C. | DE | TX | ||||||||||||
Thomason Auto Credit Northwest, Inc. | OR | |||||||||||||
Thomason Dam L.L.C. | DE | |||||||||||||
Thomason Frd L.L.C. | DE | |||||||||||||
Thomason Hund L.L.C. | DE | |||||||||||||
Thomason Pontiac-GMC L.L.C. | DE | |||||||||||||
WMZ Motors, L.P. | DE | |||||||||||||
WTY Motors, L.P. | DE | FL |
/s/ David W. Hult | |||||
David W. Hult | |||||
Chief Executive Officer | |||||
March 1, 2021 |
/s/ Patrick J. Guido | |||||
Patrick J. Guido | |||||
Chief Financial Officer | |||||
March 1, 2021 |
/s/ David W. Hult | |||||
David W. Hult | |||||
Chief Executive Officer | |||||
March 1, 2021 |
/s/ Patrick J. Guido | |||||
Patrick J. Guido | |||||
Chief Financial Officer | |||||
March 1, 2021 |