Asbury automotive group reports record eps of $9.07 for second quarter 2022, up 16% over prior year quarter, and adjusted eps (a non-gaap measure) of $10.04, up 29% over prior year quarter, and an all-time record
Duluth, ga.--(business wire)--asbury automotive group, inc. (nyse: abg) (the “company”), one of the largest automotive retail and service companies in the u.s., reported record second quarter 2022 net income of $201 million ($9.07 per diluted share), an increase of 32% from $152 million ($7.80 per diluted share) in the prior year quarter. second quarter 2022 adjusted net income, a non-gaap measure, increased 47% year-over-year to $223 million ($10.04 per diluted share) compared to adjusted net income of $152 million ($7.78 per diluted share) in second quarter 2021. “the company generated an all-time record adjusted eps of $10.04 and all-time record adjusted ebitda of $352 million. with two full quarters with our expanded dealership portfolio, our incredible team across the nation delivered a sequential increase in adjusted ebitda of 5% and adjusted eps of 8% over the first quarter of 2022. we are impressed with the strides that our team members are making to integrate our recent acquisitions and deliver value to our shareholders through this organic quarter over quarter growth,” said david hult, asbury’s president and chief executive officer. the financial measures discussed below include both gaap and adjusted (non-gaap) financial measures. please see reconciliations for non-gaap metrics included in the accompanying financial tables. adjusted net income for second quarter 2022 excludes losses, net of tax, of $29 million ($0.97 per diluted share) related to losses on the sale of dealerships and a collision center. net income for the second quarter 2021 excluded real estate net gains of $0.5 million ($0.02 per diluted share). second quarter 2022 operational summary total company vs. 2nd quarter 2021: revenue of $4.0 billion, an increase of 53% gross profit increased 61% gross margin increased 110 bps to 20.3% new vehicle unit volume increased 22%; new vehicle revenue increased 36%; gross profit increased 78% used vehicle retail unit volume increased 48%; used vehicle retail revenue increased 68%; gross profit increased 37% finance and insurance (f&i) per vehicle retailed (pvr) increased 31% parts and service revenue increased 78%; gross profit increased 59% sg&a as a percentage of gross profit increased to 55.8%, an increase of 160 bps operating income and adjusted operating income both increased 54% operating margin was flat at 8.5% and adjusted operating margin increased 10 bps to 8.5% eps increased 16% to $9.07; adjusted eps increased 29% to $10.04 same store (dealership only) vs. 2nd quarter 2021: revenue decreased 7% gross profit was flat gross margin increased 140 bps to 20.6% new vehicle unit volume decreased 31%; new vehicle revenue decreased 22%; new vehicle gross profit increased 3% used vehicle retail unit volume decreased 2%; used vehicle retail revenue increased 12%; used vehicle retail gross profit decreased 21%; used to new ratio increased to 120% (from 84%) f&i pvr increased 32% parts and service revenue increased 10%; gross profit increased 6%; customer pay gross profit increased 16% sg&a as a percentage of gross profit increased to 55.9%, an increase of 160 bps clicklane metrics: almost 6,600 vehicles sold; an increase of 55% over prior year quarter and 17% sequentially 92% of transactions were customers incremental to asbury automotive 44% of clicklane sales had a trade-in and 71% of those utilized the payoff tool total front-end pvr of $3,765 and f&i pvr of $2,166, resulting in total front-end yield of $5,927 conversion rate nearly double that of traditional internet leads and growing sequentially 95% of deliveries within a 50-mile radius of an asbury dealership average transaction time of ~8 minutes for cash deals and ~14 minutes for financed deals liquidity and leverage as of june 30, 2022, the company had cash and floorplan offset accounts of $244 million (which excludes $160 million of cash at tca) and availability under the used vehicle floorplan line and revolver of $765 million for a total of approximately $1.0 billion in liquidity. the company’s adjusted net leverage ratio was 2.1x at quarter end compared to 2.7x at the end of 2021. earnings call additional commentary regarding the second quarter results will be provided during the earnings conference call on thursday, july 28, 2022, at 10:00 a.m. et. the conference call will be simulcast live on the internet and can be accessed by logging onto www.asburyauto.com/company/investor-relations. a replay will be available on this site for 30 days. in addition, live audio of the call will be accessible to the public by calling (888) 220-8474 (domestic) or +1 (646) 828-8193 (international); confirmation code – 9867232. callers should dial in approximately 5 to 10 minutes before the call begins. a conference call replay will be available two hours following the call for seven days and can be accessed by calling (888) 203-1112 (domestic) or +1 (719) 457-0820 (international); passcode – 9867232. about asbury automotive group, inc. asbury automotive group, inc. (nyse: abg), a fortune 500 company headquartered in duluth, ga, is one of the largest automotive retailers in the u.s. in late 2020, asbury embarked on a five-year plan to increase revenue and profitability strategically through organic and acquisitive growth as well as their innovative clicklane digital vehicle purchasing platform, with its guest-centric approach as asbury’s constant north star. asbury currently operates 148 new vehicle dealerships in 15 states, consisting of 198 franchises, representing 31 brands of vehicles, and 7 stand-alone used vehicle stores. asbury also operates 34 collision repair centers, an auto auction, a used vehicle wholesale business and total care auto, powered by landcar, a leading provider of service contracts and other vehicle protection products. asbury offers an extensive range of automotive products and services, including new and used vehicles; parts and service, which includes vehicle repair and maintenance services, replacement parts and collision repair services; and finance and insurance products, including arranging vehicle financing through third parties and aftermarket products, such as extended service contracts, guaranteed asset protection debt cancellation and prepaid maintenance. for additional information, visit www.asburyauto.com. forward-looking statements this press release contains “forward-looking statements” within the meaning of the private securities litigation reform act of 1995. forward-looking statements are statements other than historical fact, and may include statements relating to goals, plans, objectives, projections regarding asbury's financial position, liquidity, results of operations, cash flows, leverage, market position and dealership portfolio, revenue enhancement strategies, operational improvements, projections regarding the expected benefits of clicklane, management’s plans, projections and objectives for future operations, scale and performance, integration plans and expected synergies from acquisitions, capital allocation strategy, business strategy and expectations of our management with respect to, among other things: changes in general economic and business conditions, including increases in interest rates and rising fuel prices, any impact of covid-19 on the automotive industry in general, the automotive retail industry in particular and our customers, suppliers, vendors and business partners; our relationships with vehicle manufacturers; our ability to maintain our margins; operating cash flows and availability of capital; capital expenditures; the amount of our indebtedness; the completion of any future acquisitions and divestitures; future return targets; future annual savings; general economic trends, including consumer confidence levels, interest rates, inflation, and fuel prices; and automotive retail industry trends. these statements are based on management's current expectations and beliefs and involve significant risks and uncertainties that may cause results to differ materially from those set forth in the statements. these risks and uncertainties include, among other things, our inability to realize the benefits expected from recently completed transactions; our inability to promptly and effectively integrate completed transactions and the diversion of management’s attention from ongoing business and regular business responsibilities; our inability to complete future acquisitions or divestitures and the risks resulting therefrom; any impact from the covid-19 pandemic on our industry and business, market factors, asbury's relationships with, and the financial and operational stability of, vehicle manufacturers and other suppliers, acts of god, acts of war or other incidents and the shortage of semiconductor chips and other components, which may adversely impact supply from vehicle manufacturers and/or present retail sales challenges; risks associated with asbury's indebtedness and our ability to comply with applicable covenants in our various financing agreements, or to obtain waivers of these covenants as necessary; risks related to competition in the automotive retail and service industries, general economic conditions both nationally and locally, governmental regulations, legislation, including changes in automotive state franchise laws, adverse results in litigation and other proceedings, and asbury's ability to execute its strategic and operational strategies and initiatives, including its five-year strategic plan, asbury's ability to leverage gains from its dealership portfolio, asbury's ability to capitalize on opportunities to repurchase its debt and equity securities or purchase properties that it currently leases, and asbury's ability to stay within its targeted range for capital expenditures. there can be no guarantees that asbury's plans for future operations will be successfully implemented or that they will prove to be commercially successful. these and other risk factors that could cause actual results to differ materially from those expressed or implied in our forward-looking statements are and will be discussed in asbury's filings with the u.s. securities and exchange commission from time to time, including its most recent annual report on form 10-k and any subsequently filed quarterly reports on form 10-q. these forward-looking statements and such risks, uncertainties and other factors speak only as of the date of this press release. we undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. asbury automotive group, inc. consolidated statements of income (in millions, except per share data) (unaudited) for the three months ended june 30, % change for the six months ended june 30, % change 2022 2021 2022 2021 revenue: new vehicle $ 1,864.5 $ 1,368.4 36 % $ 3,720.1 $ 2,520.1 48 % used vehicle: retail 1,272.8 759.4 68 % 2,489.7 1,366.9 82 % wholesale 89.7 56.8 58 % 223.7 140.2 60 % total used vehicle 1,362.5 816.2 67 % 2,713.4 1,507.1 80 % parts and service 520.2 292.4 78 % 1,022.1 554.4 84 % finance and insurance 203.0 107.0 90 % 406.4 195.3 108 % total revenue 3,950.2 2,584.0 53 % 7,862.0 4,776.9 65 % cost of sales: new vehicle 1,644.1 1,244.3 32 % 3,275.7 2,320.5 41 % used vehicle: retail 1,172.0 685.9 71 % 2,293.1 1,245.9 84 % wholesale 86.3 46.8 84 % 216.8 121.9 78 % total used vehicle 1,258.3 732.7 72 % 2,509.9 1,367.8 83 % parts and service 229.8 109.8 109 % 455.2 208.7 118 % finance and insurance 15.3 — — % 26.5 — — % total cost of sales 3,147.5 2,086.8 51 % 6,267.3 3,897.0 61 % gross profit 802.7 497.2 61 % 1,594.7 879.9 81 % operating expenses: selling, general and administrative 448.3 269.7 66 % 903.8 509.5 77 % depreciation and amortization 18.1 10.1 79 % 36.5 19.9 83 % other operating expense (income), net 0.8 (1.0 ) 180 % (1.9 ) (4.2 ) (55 ) % income from operations 335.5 218.4 54 % 656.3 354.7 85 % other expenses: floor plan interest expense 1.5 2.1 (29 ) % 4.1 5.0 (18 ) % other interest expense, net 37.6 14.4 161 % 75.2 28.4 165 % (gain) loss on dealership divestitures, net 28.7 — — % (4.4 ) — — % total other expenses, net 67.8 16.5 311 % 74.9 33.4 124 % income before income taxes 267.7 201.9 33 % 581.4 321.3 81 % income tax expense 66.3 49.8 33 % 142.3 76.4 86 % net income $ 201.4 $ 152.1 32 % $ 439.1 $ 244.9 79 % earnings per common share: basic— net income $ 9.11 $ 7.88 16 % $ 19.60 $ 12.69 54 % diluted— net income $ 9.07 $ 7.80 16 % $ 19.52 $ 12.56 55 % weighted average common shares outstanding: basic 22.1 19.3 22.4 19.3 restricted stock — 0.1 — 0.1 performance share units 0.1 0.1 0.1 0.1 diluted 22.2 19.5 22.5 19.5 asbury automotive group, inc. additional disclosures-consolidated (in millions) (unaudited) june 30, 2022 december 31, 2021 increase (decrease) % change selected balance sheet data cash and cash equivalents $ 100.1 $ 178.9 $ (78.8 ) (44 ) % inventory, net (a) 783.2 718.4 64.8 9 % total current assets 1,601.5 1,929.4 (327.9 ) (17 ) % floor plan notes payable (b) 44.4 564.5 (520.1 ) (92 ) % total current liabilities 1,156.9 1,598.0 (441.1 ) (28 ) % capitalization: long-term debt (including current portion) (c) $ 3,385.1 $ 3,582.6 $ (197.5 ) (6 ) % shareholders' equity 2,410.4 2,115.5 294.9 14 % total $ 5,795.5 $ 5,698.1 $ 97.4 2 % _____________________________ (a) excludes $5.6 million and $24.1 million of inventory classified as assets held for sale as of june 30, 2022 and december 31, 2021, respectively (b) excluding $1.1 million and $9.1 million of floor plan notes payable classified as liabilities associated with assets held for sale as of june 30, 2022 and december 31, 2021, respectively (c) excluding $2.8 million of debt classified as liabilities associated with assets held for sale as of june 30, 2022 june 30, 2022 december 31, 2021 june 30, 2021 day supply new vehicle inventory 13 8 17 used vehicle inventory 34 34 37 _____________________________ days supply of inventory is calculated based on new and used inventory levels at the end of each reporting period and a 30-day historical cost of sales. brand mix - new vehicle revenue by brand for the three months ended june 30, 2022 2021 luxury lexus 9 % 12 % mercedes-benz 8 % 11 % bmw 3 % 6 % porsche 3 % 2 % acura 2 % 4 % land rover 1 % 3 % audi 1 % 2 % other luxury 5 % 4 % total luxury 32 % 44 % imports toyota 16 % 11 % honda 8 % 17 % hyundai 5 % 2 % nissan 4 % 5 % other imports 5 % 6 % total imports 38 % 41 % domestic chrysler, dodge, jeep, ram 16 % 5 % ford 9 % 5 % chevrolet, buick, gmc 5 % 5 % total domestic 30 % 15 % total new vehicle revenue 100 % 100 % for the three months ended june 30, 2022 2021 revenue mix new vehicle 47.2 % 53.0 % used vehicle retail 32.2 % 29.4 % used vehicle wholesale 2.3 % 2.2 % parts and service 13.2 % 11.3 % finance and insurance 5.1 % 4.1 % total revenue 100.0 % 100.0 % gross profit mix new vehicle 27.5 % 25.0 % used vehicle retail 12.5 % 14.8 % used vehicle wholesale 0.4 % 2.0 % parts and service 36.2 % 36.7 % finance and insurance 23.4 % 21.5 % total gross profit 100.0 % 100.0 % asbury automotive group, inc. statements of income-consolidated (in millions) (unaudited) for the three months ended june 30, % change for the six months ended june 30, % change 2022 2021 2022 2021 revenue new vehicle $ 1,864.5 $ 1,368.4 36 % $ 3,720.1 $ 2,520.1 48 % used vehicle: retail 1,272.8 759.4 68 % 2,489.7 1,366.9 82 % wholesale 89.7 56.8 58 % 223.7 140.2 60 % total used vehicle 1,362.5 816.2 67 % 2,713.4 1,507.1 80 % parts and service 520.2 292.4 78 % 1,022.1 554.4 84 % finance and insurance 203.0 107.0 90 % 406.4 195.3 108 % total revenue 3,950.2 2,584.0 53 % 7,862.0 4,776.9 65 % gross profit new vehicle $ 220.4 $ 124.1 78 % $ 444.4 $ 199.6 123 % used vehicle: retail 100.8 73.5 37 % 196.6 121.0 62 % wholesale 3.4 10.0 (66 ) % 6.9 18.3 (62 ) % total used vehicle 104.2 83.5 25 % 203.5 139.3 46 % parts and service 290.4 182.6 59 % 566.9 345.7 64 % finance and insurance 187.7 107.0 75 % 379.9 195.3 95 % total gross profit 802.7 497.2 61 % 1,594.7 879.9 81 % operating expenses selling, general and administrative $ 448.3 $ 269.7 66 % $ 903.8 $ 509.5 77 % operating metrics sg&a as a % of gross profit 55.8 % 54.2 % 160 bps 56.7 % 57.9 % (120) bps adjusted sg&a as a % of gross profit 55.8 % 54.2 % 160 bps 56.7 % 57.9 % (120) bps income from operations as a % of revenue 8.5 % 8.5 % — bps 8.3 % 7.4 % 90 bps income from operations as a % of gross profit 41.8 % 43.9 % (210) bps 41.2 % 40.3 % 90 bps adjusted income from operations as a % of revenue 8.5 % 8.4 % 10 bps 8.3 % 7.4 % 90 bps adjusted income from operations as a % of gross profit 41.8 % 43.8 % (200) bps 41.1 % 39.9 % 120 bps finance and insurance average gross profit per unit $ 2,390 $ 1,827 31 % $ 2,435 $ 1,786 36 % total parts and service gross margin 55.8 % 62.4 % (660) bps 55.5 % 62.4 % (690) bps total gross profit margin 20.3 % 19.2 % 110 bps 20.3 % 18.4 % 190 bps asbury automotive group, inc. statements of income-dealerships (in millions) (unaudited) for the three months ended june 30, % change for the six months ended june 30, % change 2022 2021 2022 2021 revenue new vehicle $ 1,864.5 $ 1,368.4 36 % $ 3,720.1 $ 2,520.1 48 % used vehicle: retail 1,272.8 759.4 68 % 2,489.7 1,366.9 82 % wholesale 89.7 56.8 58 % 223.7 140.2 60 % total used vehicle 1,362.5 816.2 67 % 2,713.4 1,507.1 80 % parts and service 528.3 292.4 81 % 1,038.1 554.4 87 % finance and insurance, net 174.7 107.0 63 % 352.6 195.3 81 % total revenue 3,930.0 2,584.0 52 % 7,824.2 4,776.9 64 % gross profit new vehicle $ 220.4 $ 124.1 78 % $ 444.4 $ 199.6 123 % used vehicle: retail 100.8 73.5 37 % 196.6 121.0 62 % wholesale 3.4 10.0 (66 ) % 6.9 18.3 (62 ) % total used vehicle 104.2 83.5 25 % 203.5 139.3 46 % parts and service 294.4 182.6 61 % 574.6 345.7 66 % finance and insurance, net 174.7 107.0 63 % 352.6 195.3 81 % total gross profit 793.7 497.2 60 % 1,575.1 879.9 79 % unit sales new vehicle: luxury 8,899 10,085 (12 ) % 17,156 18,596 (8 ) % import 19,564 17,257 13 % 40,242 31,634 27 % domestic 10,234 4,383 133 % 20,473 8,754 134 % total new vehicle 38,697 31,725 22 % 77,871 58,984 32 % used vehicle retail 39,848 26,856 48 % 78,154 50,375 55 % used to new ratio 103.0 % 84.7 % 100.4 % 85.4 % average selling price new vehicle $ 48,182 $ 43,133 12 % $ 47,773 $ 42,725 12 % used vehicle retail $ 31,941 $ 28,277 13 % $ 31,856 $ 27,134 17 % average gross profit per unit new vehicle: luxury $ 8,596 $ 6,138 40 % $ 8,586 $ 5,732 50 % import 4,483 2,550 76 % 4,552 1,963 132 % domestic 5,491 4,152 32 % 5,563 3,530 58 % total new vehicle 5,696 3,912 46 % 5,707 3,384 69 % used vehicle retail 2,530 2,737 (8 ) % 2,516 2,402 5 % finance and insurance 2,224 1,827 22 % 2,260 1,786 27 % front end yield (1) 6,314 5,200 21 % 6,368 4,717 35 % gross margin new vehicle 11.8 % 9.1 % 270 bps 11.9 % 7.9 % 400 bps used vehicle retail 7.9 % 9.7 % (180) bps 7.9 % 8.9 % (100) bps parts and service 55.7 % 62.4 % (670) bps 55.4 % 62.4 % (700) bps total gross profit margin 20.2 % 19.2 % 100 bps 20.1 % 18.4 % 170 bps operating expenses selling, general and administrative $ 455.1 $ 269.7 69 % $ 917.2 $ 509.5 80 % adjusted selling, general and administrative $ 455.1 $ 269.7 69 % $ 917.2 $ 509.5 80 % sg&a as a % of gross profit 57.3 % 54.2 % 310 bps 58.2 % 57.9 % 30 bps adjusted sg&a as a % of gross profit 57.3 % 54.2 % 310 bps 58.2 % 57.9 % 30 bps _____________________________ (1) front end yield is calculated as gross profit from new vehicles, used retail vehicles and finance and insurance (net), divided by combined new and used retail unit sales. asbury automotive group, inc. same store operating highlights-dealerships (in millions) (unaudited) for the three months ended june 30, % change for the six months ended june 30, % change 2022 2021 2022 2021 revenue new vehicle $ 1,058.1 $ 1,351.0 (22 ) % $ 2,086.5 $ 2,488.3 (16 ) % used vehicle: retail 837.2 748.6 12 % 1,627.1 1,346.2 21 % wholesale 38.6 56.5 (32 ) % 91.1 139.4 (35 ) % total used vehicle 875.8 805.1 9 % 1,718.2 1,485.6 16 % parts and service 317.8 288.7 10 % 612.9 547.4 12 % finance and insurance 114.4 106.0 8 % 224.3 193.4 16 % total revenue 2,366.1 2,550.8 (7 ) % 4,641.9 4,714.7 (2 ) % gross profit new vehicle $ 125.1 $ 121.9 3 % $ 249.6 $ 196.3 27 % used vehicle: retail 57.3 72.7 (21 ) % 112.1 119.5 (6 ) % wholesale 1.3 9.9 (87 ) % 2.0 18.1 (89 ) % total used vehicle 58.6 82.6 (29 ) % 114.1 137.6 (17 ) % parts and service 190.2 180.2 6 % 366.5 341.0 7 % finance and insurance 114.4 106.0 8 % 224.3 193.4 16 % total gross profit 488.3 490.7 — % 954.5 868.3 10 % unit sales new vehicle: luxury 7,703 9,780 (21 ) % 14,570 18,039 (19 ) % import 10,741 17,257 (38 ) % 22,379 31,634 (29 ) % domestic 3,150 4,383 (28 ) % 6,296 8,754 (28 ) % total new vehicle 21,594 31,420 (31 ) % 43,245 58,427 (26 ) % used vehicle retail 25,891 26,505 (2 ) % 50,488 49,680 2 % used to new ratio 119.9 % 84.4 % 116.7 % 85.0 % average selling price new vehicle $ 49,000 $ 42,998 14 % $ 48,248 $ 42,588 13 % used vehicle retail $ 32,336 $ 28,244 14 % $ 32,227 $ 27,097 19 % average gross profit per unit new vehicle: luxury $ 8,231 $ 6,104 35 % $ 8,332 $ 5,726 46 % import 4,394 2,550 72 % 4,375 1,963 123 % domestic 4,603 4,152 11 % 4,813 3,530 36 % total new vehicle 5,793 3,880 49 % 5,772 3,360 72 % used vehicle retail 2,213 2,743 (19 ) % 2,220 2,405 (8 ) % finance and insurance 2,409 1,830 32 % 2,393 1,789 34 % front end yield (1) 6,250 5,189 20 % 6,252 4,710 33 % gross margin total new vehicle 11.8 % 9.0 % 280 bps 12.0 % 7.9 % 410 bps used vehicle retail 6.8 % 9.7 % (290) bps 6.9 % 8.9 % (200) bps parts and service 59.8 % 62.4 % (260) bps 59.8 % 62.3 % (250) bps total gross profit margin 20.6 % 19.2 % 140 bps 20.6 % 18.4 % 220 bps operating expenses selling, general and administrative $ 273.2 $ 266.4 3 % $ 542.7 $ 503.4 8 % adjusted selling, general and administrative $ 273.2 $ 266.4 3 % $ 542.7 $ 503.4 8 % sg&a as a % of gross profit 55.9 % 54.3 % 160 bps 56.9 % 58.0 % (110) bps adjusted sg&a as a % of gross profit 55.9 % 54.3 % 160 bps 56.9 % 58.0 % (110) bps _____________________________ (1) front end yield is calculated as gross profit from new vehicles, used retail vehicles and finance and insurance (net), divided by combined new and used retail unit sales. asbury automotive group, inc. segment reporting (unaudited) three months ended june 30, 2022 dealerships tca after eliminations total company (in millions) revenue new $ 1,864.5 $ — $ 1,864.5 used 1,362.5 — 1,362.5 parts and service 528.3 (8.1 ) 520.2 finance and insurance 174.7 28.3 203.0 total revenue 3,930.0 20.2 3,950.2 cost of sales new $ 1,644.1 $ — $ 1,644.1 used 1,258.3 — 1,258.3 parts and service 233.9 (4.1 ) 229.8 finance and insurance — 15.3 15.3 total cost of sales 3,136.3 11.2 3,147.5 gross profit new $ 220.4 $ — $ 220.4 used 104.2 — 104.2 parts and service 294.4 (4.0 ) 290.4 finance and insurance 174.7 13.0 187.7 total gross profit 793.7 9.0 802.7 selling, general and administrative $ 455.1 $ (6.8 ) $ 448.3 income from operations $ 321.8 $ 13.7 $ 335.5 six months ended june 30, 2022 dealerships tca after eliminations total company (in millions) revenue new $ 3,720.1 $ — $ 3,720.1 used 2,713.4 — 2,713.4 parts and service 1,038.1 (16.0 ) 1,022.1 finance and insurance 352.6 53.8 406.4 total revenue 7,824.2 37.8 7,862.0 cost of sales new $ 3,275.7 $ — $ 3,275.7 used 2,509.9 — 2,509.9 parts and service 463.5 (8.3 ) 455.2 finance and insurance — 26.5 26.5 total cost of sales 6,249.1 18.2 6,267.3 gross profit new $ 444.4 $ — $ 444.4 used 203.5 — 203.5 parts and service 574.6 (7.7 ) 566.9 finance and insurance 352.6 27.3 379.9 total gross profit 1,575.1 19.6 1,594.7 selling, general and administrative $ 917.2 $ (13.4 ) $ 903.8 income from operations $ 626.7 $ 29.6 $ 656.3 asbury automotive group inc. supplemental disclosures (unaudited) non-gaap financial disclosure and reconciliation in addition to evaluating the financial condition and results of our operations in accordance with gaap, from time to time management evaluates and analyzes results and any impact on the company of strategic decisions and actions relating to, among other things, cost reduction, growth, and profitability improvement initiatives, and other events outside of normal, or "core," business and operations, by considering certain alternative financial measures not prepared in accordance with gaap. these measures include "pro forma adjusted leverage ratio," "adjusted income from operations," "adjusted net income," "adjusted operating margins," "adjusted ebitda" and "adjusted diluted earnings per share ("eps")." further, management assesses the organic growth of our revenue and gross profit on a same store basis. we believe that our assessment on a same store basis represents an important indicator of comparative financial performance and provides relevant information to assess our performance at our existing locations. same store amounts consist of information from dealerships for identical months in each comparative period, commencing with the first month we owned the dealership. additionally, amounts related to divested dealerships are excluded from each comparative period. non-gaap measures do not have definitions under gaap and may be defined differently by and not be comparable to similarly titled measures used by other companies. as a result, any non-gaap financial measures considered and evaluated by management are reviewed in conjunction with a review of the most directly comparable measures calculated in accordance with gaap. management cautions investors not to place undue reliance on such non-gaap measures, but also to consider them with the most directly comparable gaap measures. in their evaluation of results from time to time, management excludes items that do not arise directly from core operations, or are otherwise of an unusual or non-recurring nature. because these non-core, unusual or non-recurring charges and gains materially affect asbury's financial condition or results in the specific period in which they are recognized, management also evaluates, and makes resource allocation and performance evaluation decisions based on, the related non-gaap measures excluding such items. in addition to using such non-gaap measures to evaluate results in a specific period, management believes that such measures may provide more complete and consistent comparisons of operational performance on a period-over-period historical basis and a better indication of expected future trends. management discloses these non-gaap measures, and the related reconciliations, because it believes investors use these metrics in evaluating longer-term period-over-period performance, and to allow investors to better understand and evaluate the information used by management to assess operating performance. the following tables provide reconciliations for our non-gaap metrics: for the three months ended for the twelve months ended june 30, 2022 june 30, 2021 june 30, 2022 march 31, 2022 (dollars in millions) adjusted leverage ratio: long-term debt (including current portion and held for sale) $ 3,387.9 $ 3,406.6 cash and floor plan offset (404.4 ) (310.9 ) tca cash 160.3 137.7 availability under our used vehicle revolving floor plan facility (327.8 ) (192.8 ) adjusted long-term net debt $ 2,816.0 $ 3,040.6 calculation of earnings before interest, taxes, depreciation and amortization ("ebitda"): net income $ 201.4 $ 152.1 $ 726.6 $ 677.3 depreciation and amortization 18.1 10.1 58.5 50.5 income tax expense 66.3 49.8 231.2 214.7 swap and other interest expense 37.7 14.4 141.4 118.2 earnings before interest, taxes, depreciation and amortization ("ebitda") $ 323.5 $ 226.4 $ 1,157.7 $ 1,060.7 non-core items - expense (income): (gain) loss on dealership divestitures, net $ 28.6 $ — $ (12.4 ) $ (41.0 ) gain on sale of real estate — (0.8 ) (0.9 ) (1.7 ) professional fees associated with acquisitions — — 4.9 4.9 real estate-related charges — 0.3 — 0.3 total non-core items 28.6 (0.5 ) (8.4 ) (37.5 ) adjusted ebitda $ 352.1 $ 225.9 $ 1,149.3 $ 1,023.2 pro forma impact of acquisition and divestitures on ebitda $ 214.2 $ 330.7 pro forma adjusted ebitda $ 1,363.5 $ 1,353.9 pro forma adjusted net leverage ratio 2.1 2.2 three months ended june 30, 2022 gaap (gain) loss on divestiture real estate related gain income tax effect non-gaap adjusted (in millions, except per share data) selling, general and administrative $ 448.3 $ — $ — $ — $ 448.3 income from operations $ 335.5 $ — $ — $ — $ 335.5 net income $ 201.4 $ 28.6 $ — $ (7.1 ) $ 222.9 weighted average common share outstanding - diluted 22.2 22.2 diluted eps $ 9.07 $ 1.29 $ — $ (0.32 ) $ 10.04 sg&a as a % of gross profit 55.8 % 55.8 % income from operations as a % of revenue 8.5 % — % — % — % 8.5 % dealerships: selling, general and administrative $ 455.1 $ — $ — $ — $ 455.1 sg&a as a % of gross profit 57.3 % 57.3 % three months ended june 30, 2021 gaap legal settlements real estate related gain real estate related charges income tax effect non-gaap adjusted (in millions, except per share data) selling, general and administrative $ 269.7 $ — $ — $ — $ — $ 269.7 income from operations $ 218.4 $ — $ (0.8 ) $ 0.3 $ — $ 217.9 net income $ 152.1 $ — $ (0.8 ) $ 0.3 $ 0.1 $ 151.7 weighted average common share outstanding - diluted 19.5 19.5 diluted eps $ 7.80 $ — $ (0.05 ) $ 0.02 $ 0.01 $ 7.78 sg&a as a % of gross profit 54.2 % 54.2 % income from operations as a % of revenue 8.5 % — % (0.1 ) % — % — % 8.4 % dealerships: selling, general and administrative $ 269.7 $ — $ — $ — $ — $ 269.7 sg&a as a % of gross profit 54.2 % 54.2 % six months ended june 30, 2022 gaap (gain) loss on divestiture real estate related gain income tax effect non-gaap adjusted (in millions, except per share data) selling, general and administrative $ 903.8 $ — $ — $ — $ 903.8 income from operations $ 656.3 $ — $ (0.9 ) $ — $ 655.4 net income $ 439.1 $ (4.4 ) $ (0.9 ) $ 1.3 $ 435.1 weighted average common share outstanding - diluted 22.5 22.5 diluted eps $ 19.52 $ (0.21 ) $ (0.04 ) $ 0.05 $ 19.32 sg&a as a % of gross profit 56.7 % 56.7 % income from operations as a % of revenue 8.3 % — % — % — % 8.3 % dealerships: selling, general and administrative $ 917.2 $ — $ — $ — $ 917.2 sg&a as a % of gross profit 58.2 % 58.2 % six months ended june 30, 2021 gaap legal settlements real estate related gain real estate related charges income tax effect non-gaap adjusted (in millions, except per share data) selling, general and administrative $ 509.5 $ — $ — $ — $ — $ 509.5 income from operations $ 354.7 $ (3.5 ) $ (1.9 ) $ 2.1 $ — $ 351.4 net income $ 244.9 $ (3.5 ) $ (1.9 ) $ 2.1 $ 0.8 $ 242.4 weighted average common share outstanding - diluted 19.5 19.5 diluted eps $ 12.56 $ (0.18 ) $ (0.10 ) $ 0.11 $ 0.04 12.43 sg&a as a % of gross profit 57.9 % 57.9 % income from operations as a % of revenue 7.4 % — % — % — % — % 7.4 % dealerships: selling, general and administrative $ 509.5 $ — $ — $ — $ — $ 509.5 sg&a as a % of gross profit 57.9 % 57.9 %
