Asbury automotive group announces record third quarter 2021 financial results
Duluth, ga.--(business wire)--asbury automotive group, inc. (nyse: abg), one of the largest automotive retail and service companies in the u.s., reported record net income for the third quarter 2021 of $147.0 million ($7.54 per diluted share). this result compares to net income of $96.2 million ($4.96 per diluted share) in the prior year quarter. the financial measures discussed below include both gaap and adjusted (non-gaap) financial measures. please see reconciliations for our non-gaap metrics included in the accompanying financial tables. “this quarter, though the supply of new inventory remained constrained, our teams continued to excel and achieved record third quarter levels in revenue, operating margins, sg&a as a percentage of gross profit, net income, and eps. we are trending well on our same store pillar of our five-year growth plan,” said david hult, asbury’s president and chief executive officer. “in addition, on our m&a pillar, we announced the upcoming transformative acquisition of the larry h. miller dealerships and total care auto, powered by landcar, with annualized revenues of approximately $5.7 billion. along with other acquisitions, both closed and under contract, of an additional $900 million, in 2021, we expect to close on acquisitions totaling $6.6 billion in annualized revenue. overall, we are tracking to surpass our strategic five-year plan.” the company reported adjusted net income (a non-gaap measure) for the third quarter 2021 of $143.6 million ($7.36 per diluted share) compared to $79.2 million ($4.08 per diluted share) in the prior year quarter. net income for the third quarter 2021 was adjusted for acquisition expenses of $3.5 million ($0.13 per diluted share) and gain on divestiture of $8.0 million ($0.31 per diluted share). net income for the third quarter 2020 was adjusted for a $24.7 million ($0.96 per diluted share) gain on a dealership divestiture, $1.3 million ($0.05 per diluted share) of acquisition related costs and a $0.7 million ($0.03 per diluted share) real estate related charge. the company reported total revenue for the third quarter of $2.4 billion, up 30% from the prior year period; total revenue on a same-store basis was up 16% from the prior year period. third quarter 2021 operational summary total company vs. 3rd quarter 2020: revenue increased 30% gross profit increased 43% gross margin increased 180 bps to 20% new vehicle unit volume increased 1%; new vehicle revenue increased 18%; gross profit increased 108% used vehicle retail unit volume increased 36%; used vehicle retail revenue increased 62%; gross profit increased 59% finance and insurance revenue and gross profit increased 24% parts and service revenue and gross profit increased 25%; customer pay revenue and gross profit increased 30% adjusted sg&a as a percentage of gross profit fell to 55.3%, a decrease of 580 bps operating income increased 69% operating margin increased 190 bps to 8.4%; adjusted operating margin increased 190 bps to 8.5% adjusted eps increased 80% to $7.36 same store vs. 3rd quarter 2020: revenue increased 16% gross profit increased 28% gross margin increased 190 bps to 20.1% new vehicle unit volume decreased 7%; new vehicle revenue increased 5%; gross profit increased 83% used vehicle retail unit volume increased 27%; used vehicle retail revenue increased 47%; gross profit increased 45% finance and insurance revenue and gross profit increased 18% parts and service revenue and gross profit increased 10%; customer pay gross profit increased 12% liquidity and leverage as of september 30, 2021, the company had approximately $780 million of liquidity (including cash of $331 million, floorplan offset accounts of $47 million, $190 million under our new floor plan facility that is able to be converted to our revolver, and availability under our used vehicle floorplan line and revolver of $209 million). the company’s adjusted net leverage ratio was 1.2x at quarter-end. earnings call additional commentary regarding the third quarter results will be provided during the earnings conference call on tuesday, october 26, 2021, 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 (800) 353-6461 (domestic), or (334) 323-0501 (international); passcode – 5585333. callers should dial in approximately 5 to 10 minutes before the call begins. a conference call replay will be available two hours following the call for seven days and can be accessed by calling (888) 203-1112 (domestic), or (719) 457-0820 (international); passcode – 5585333. 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 5‑year plan to strategically increase revenue and profitability through organic and acquisitive growth as well as their innovative clicklane digital car purchasing platform, with its guest-centric approach as asbury’s constant north star. asbury currently operates 92 dealerships, consisting of 115 franchises, representing 31 domestic and foreign brands of vehicles. asbury also operates 25 collision repair centers. 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, prepaid maintenance, and credit life and disability insurance. 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, market conditions and projections regarding asbury's financial position, liquidity, results of operations, market position and dealership portfolio, the expected benefits of clicklane, and other initiatives and future business strategy, including the expected terms or timeline of currently anticipated or recently completed acquisitions or dispositions, such as the lhm acquisition, the anticipated cost savings, run-rate synergies, revenue enhancement strategies, operational improvements and other benefits of such currently anticipated or recently completed acquisitions or dispositions. 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, the impact of the ongoing 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 or other incidents and the shortage of semiconductor chips, which may adversely impact supply from vehicle manufacturers and/or present retail sales challenges, any event or circumstance that could give rise to the termination of the lhm acquisition, including the failure to obtain necessary manufacturer and regulatory approvals; the ability to consummate the lhm acquisition and other pending acquisitions on the terms or timeline currently contemplated or at all; the ability to successfully integrate the lhm business or other acquisitions in our existing operations and the diversion of management’s attention from ongoing business and regular business responsibilities; the effects of increased expenses or unanticipated liabilities incurred as a result of the lhm acquisition and other pending acquisitions; the disruption from the lhm acquisition and other acquisitions, making it more difficult to maintain relationships with customers or suppliers; 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, adverse results in litigation and other proceedings, and asbury's ability to execute its five-year strategic plan, it initiatives and other operational strategies, asbury's ability to leverage gains from its dealership portfolio, asbury's ability to capitalize on opportunities to repurchase its debt and equity securities or purchase properties that it currently leases, and asbury's ability to stay within its targeted range for capital expenditures. there can be no guarantees that asbury's plans for future operations will be successfully implemented or that they will prove to be commercially successful. these and other risk factors that could cause actual results to differ materially from those expressed or implied in our forward-looking statements are and will be discussed in asbury's filings with the u.s. securities and exchange commission from time to time, including its most recent annual report on form 10-k and any subsequently filed quarterly reports on form 10-q. we undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. consolidated statements of income (in millions, except per share data) (unaudited) for the three months ended september 30, increase (decrease) % change 2021 2020 revenue: new vehicle $ 1,129.5 $ 957.9 $ 171.6 18 % used vehicle: retail 823.7 507.4 316.3 62 % wholesale 55.3 62.1 (6.8) (11) % total used vehicle 879.0 569.5 309.5 54 % parts and service 297.1 237.2 59.9 25 % finance and insurance, net 100.4 80.8 19.6 24 % total revenue 2,406.0 1,845.4 560.6 30 % gross profit: new vehicle 126.0 60.6 65.4 108 % used vehicle: retail 68.7 43.3 25.4 59 % wholesale 3.5 5.9 (2.4) (41) % total used vehicle 72.2 49.2 23.0 47 % parts and service 181.4 145.3 36.1 25 % finance and insurance, net 100.4 80.8 19.6 24 % total gross profit 480.0 335.9 144.1 43 % operating expenses: selling, general and administrative 268.7 206.5 62.2 30 % depreciation and amortization 10.7 9.8 0.9 9 % other operating (income) expense, net (0.4) 0.5 (0.9) (180) % income from operations 201.0 119.1 81.9 69 % other expenses (income): floor plan interest expense 1.5 3.0 (1.5) (50) % other interest expense, net 14.8 12.9 1.9 15 % gain on dealership divestitures, net (8.0) (24.7) 16.7 68 % total other expenses (income), net 8.3 (8.8) 17.1 194 % income before income taxes 192.7 127.9 64.8 51 % income tax expense 45.7 31.7 14.0 44 % net income $ 147.0 $ 96.2 $ 50.8 53 % earnings per common share: basic— net income $ 7.62 $ 5.01 $ 2.61 52 % diluted— net income $ 7.54 $ 4.96 $ 2.58 52 % weighted average common shares outstanding: basic 19.3 19.2 0.1 restricted stock 0.1 0.1 — performance share units 0.1 0.1 — diluted 19.5 19.4 0.1 asbury automotive group, inc. key operating highlights (in millions, except per unit data) (unaudited) for the three months ended september 30, increase (decrease) % change 2021 2020 unit sales new vehicle: luxury 7,972 6,157 1,815 29 % import 13,491 13,818 (327) (2) % domestic 3,300 4,580 (1,280) (28) % total new vehicle 24,763 24,555 208 1 % used vehicle retail 27,761 20,464 7,297 36 % used to new ratio 112.1 % 83.3 % 2,880 bps average selling price new vehicle $ 45,612 $ 39,010 $ 6,602 17 % used vehicle retail 29,671 24,795 4,876 20 % average gross profit per unit new vehicle: luxury $ 7,551 $ 4,613 $ 2,938 64 % import 3,714 1,397 2,317 166 % domestic 4,758 2,817 1,941 69 % total new vehicle 5,088 2,468 2,620 106 % used vehicle retail 2,475 2,116 359 17 % finance and insurance, net 1,912 1,795 117 7 % front end yield (1) 5,618 4,103 1,515 37 % gross margin new vehicle: luxury 11.8 % 8.2 % 360 bps import 10.9 % 4.7 % 620 bps domestic 9.7 % 6.5 % 320 bps total new vehicle 11.2 % 6.3 % 490 bps used vehicle retail 8.3 % 8.5 % (20) bps parts and service 61.1 % 61.3 % (20) bps total gross profit margin 20.0 % 18.2 % 180 bps sg&a metrics rent expense $ 8.3 $ 8.1 $ 0.2 2 % sg&a as a percentage of gross profit 56.0 % 61.5 % (550) bps sg&a, excluding rent expense as a percentage of gross profit 54.3 % 59.1 % (480) bps adjusted sg&a as a percentage of gross profit 55.3 % 61.1 % (580) bps operating metrics income from operations as a percentage of revenue 8.4 % 6.5 % 190 bps income from operations as a percentage of gross profit 41.9 % 35.5 % 640 bps adjusted income from operations as a percentage of revenue 8.5 % 6.6 % 190 bps adjusted income from operations as a percentage of gross profit 42.6 % 36.1 % 650 bps revenue mix new vehicle 46.9 % 51.9 % used vehicle retail 34.3 % 27.4 % used vehicle wholesale 2.3 % 3.4 % parts and service 12.3 % 12.9 % finance and insurance 4.2 % 4.4 % total revenue 100.0 % 100.0 % gross profit mix new vehicle 26.3 % 18.0 % used vehicle retail 14.3 % 12.8 % used vehicle wholesale 0.7 % 1.8 % parts and service 37.8 % 43.3 % finance and insurance 20.9 % 24.1 % total gross profit 100.0 % 100.0 % (1) front end yield is calculated as gross profit from new vehicles, used retail vehicles and finance and insurance (net), divided by combined new and used retail unit sales. asbury automotive group, inc. same store operating highlights (in millions) (unaudited) for the three months ended september 30, increase (decrease) % change 2021 2020 revenue new vehicle: luxury $ 371.3 $ 334.5 $ 36.8 11 % import 452.1 413.9 38.2 9 % domestic 162.4 192.6 (30.2) (16) % total new vehicle 985.8 941.0 44.8 5 % used vehicle: retail 728.2 496.1 232.1 47 % wholesale 38.4 61.4 (23.0) (37) % total used vehicle 766.6 557.5 209.1 38 % parts and service 256.0 232.5 23.5 10 % finance and insurance 93.8 79.7 14.1 18 % total revenue $ 2,102.2 $ 1,810.7 $ 291.5 16 % gross profit new vehicle: luxury $ 43.3 $ 27.3 $ 16.0 59 % import 49.4 19.4 30.0 155 % domestic 15.7 12.4 3.3 27 % total new vehicle 108.4 59.1 49.3 83 % used vehicle: retail 61.1 42.2 18.9 45 % wholesale 2.6 5.9 (3.3) (56) % total used vehicle 63.7 48.1 15.6 32 % parts and service: customer pay 92.5 82.3 10.2 12 % warranty 19.7 25.0 (5.3) (21) % wholesale parts 7.7 5.7 2.0 35 % parts and service, excluding reconditioning and preparation 119.9 113.0 6.9 6 % reconditioning and preparation 36.0 29.2 6.8 23 % total parts and service 155.9 142.2 13.7 10 % finance and insurance 93.8 79.7 14.1 18 % total gross profit $ 421.8 $ 329.1 $ 92.7 28 % sg&a expense $ 239.6 $ 202.6 $ 37.0 18 % sg&a expense as a percentage of gross profit 56.8 % 61.6 % (480) bps 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. asbury automotive group, inc. same store operating highlights (continued) (unaudited) for the three months ended september 30, increase (decrease) % change 2021 2020 unit sales new vehicle: luxury 5,918 5,951 (33) (1) % import 13,329 13,818 (489) (4) % domestic 3,300 4,464 (1,164) (26) % total new vehicle 22,547 24,233 (1,686) (7) % used vehicle retail 25,442 20,050 5,392 27 % used to new ratio 112.8 % 82.7 % 3,010 bps average selling price new vehicle $ 43,722 $ 38,831 $ 4,891 13 % used vehicle retail 28,622 24,743 3,879 16 % average gross profit per unit new vehicle: luxury $ 7,317 $ 4,587 $ 2,730 60 % import 3,706 1,404 2,302 164 % domestic 4,758 2,778 1,980 71 % total new vehicle 4,808 2,439 2,369 97 % used vehicle retail 2,402 2,105 297 14 % finance and insurance, net 1,955 1,800 155 9 % front end yield (1) 5,487 4,087 1,400 34 % gross margin new vehicle: luxury 11.7 % 8.2 % 350 bps import 10.9 % 4.7 % 620 bps domestic 9.7 % 6.4 % 330 bps total new vehicle 11.0 % 6.3 % 470 bps used vehicle retail 8.4 % 8.5 % (10) bps parts and service: parts and service, excluding reconditioning and preparation 46.8 % 48.6 % (180) bps parts and service, including reconditioning and preparation 60.9 % 61.2 % (30) bps total gross profit margin 20.1 % 18.2 % 190 bps 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. (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. consolidated statements of income (in millions, except per share data) (unaudited) for the nine months ended september 30, increase (decrease) % change 2021 2020 revenue: new vehicle $ 3,649.6 $ 2,541.8 $ 1,107.8 44 % used vehicle: retail 2,190.6 1,366.0 824.6 60 % wholesale 195.5 144.2 51.3 36 % total used vehicle 2,386.1 1,510.2 875.9 58 % parts and service 851.5 628.0 223.5 36 % finance and insurance, net 295.7 217.8 77.9 36 % total revenue 7,182.9 4,897.8 2,285.1 47 % gross profit: new vehicle 325.6 135.6 190.0 140 % used vehicle: retail 189.7 106.1 83.6 79 % wholesale 21.8 10.9 10.9 100 % total used vehicle 211.5 117.0 94.5 81 % parts and service 527.1 380.7 146.4 38 % finance and insurance, net 295.7 217.8 77.9 36 % total gross profit 1,359.9 851.1 508.8 60 % operating expenses: selling, general and administrative 778.2 553.4 224.8 41 % depreciation and amortization 30.6 29.0 1.6 6 % franchise rights impairment — 23.0 (23.0) (100) % other operating (income) expense, net (4.6) 9.4 (14.0) (149) % income from operations 555.7 236.3 319.4 135 % other expenses: floor plan interest expense 6.5 14.1 (7.6) (54) % other interest expense, net 43.2 41.7 1.5 4 % loss on extinguishment of long-term debt, net — 20.6 (20.6) (100) % gain on dealership divestitures, net (8.0) (58.4) 50.4 86 % total other expenses, net 41.7 18.0 23.7 132 % income before income taxes 514.0 218.3 295.7 135 % income tax expense 122.1 53.0 69.1 130 % net income $ 391.9 $ 165.3 $ 226.6 137 % earnings per common share: basic— net income $ 20.31 $ 8.61 $ 11.70 136 % diluted— net income $ 20.10 $ 8.56 $ 11.54 135 % weighted average common shares outstanding: basic 19.3 19.2 0.1 restricted stock 0.1 — 0.1 performance share units 0.1 0.1 — diluted 19.5 19.3 0.2 asbury automotive group, inc. key operating highlights (in millions, except per unit data) (unaudited) for the nine months ended september 30, increase (decrease) % change 2021 2020 unit sales new vehicle: luxury 26,568 15,508 11,060 71 % import 45,125 37,886 7,239 19 % domestic 12,054 13,198 (1,144) (9) % total new vehicle 83,747 66,592 17,155 26 % used vehicle retail 78,136 59,151 18,985 32 % used to new ratio 93.3 % 88.8 % 450 bps average selling price new vehicle $ 43,579 $ 38,170 $ 5,409 14 % used vehicle retail 28,036 23,093 4,943 21 % average gross profit per unit new vehicle: luxury $ 6,278 $ 4,004 $ 2,274 57 % import 2,486 1,122 1,364 122 % domestic 3,866 2,349 1,517 65 % total new vehicle 3,888 2,036 1,852 91 % used vehicle retail 2,428 1,794 634 35 % finance and insurance, net 1,827 1,732 95 5 % front end yield (1) 5,010 3,654 1,356 37 % gross margin new vehicle: luxury 10.2 % 7.2 % 300 bps import 7.7 % 3.8 % 390 bps domestic 8.3 % 5.5 % 280 bps total new vehicle 8.9 % 5.3 % 360 bps used vehicle retail 8.7 % 7.8 % 90 bps parts and service 61.9 % 60.6 % 130 bps total gross profit margin 18.9 % 17.4 % 150 bps sg&a metrics rent expense $ 28.7 $ 20.8 $ 7.9 38 % sg&a as a percentage of gross profit 57.2 % 65.0 % (780) bps sg&a, excluding rent expense as a percentage of gross profit 55.1 % 62.6 % (750) bps adjusted sg&a as a percentage of gross profit 57.0 % 64.9 % (790) bps operating metrics income from operations as a percentage of revenue 7.7 % 4.8 % 290 bps income from operations as a percentage of gross profit 40.9 % 27.8 % 1,310 bps adjusted income from operations as a percentage of revenue 7.7 % 5.5 % 220 bps adjusted income from operations as a percentage of gross profit 40.9 % 31.8 % 910 bps revenue mix new vehicle 50.8 % 51.9 % used vehicle retail 30.5 % 28.0 % used vehicle wholesale 2.7 % 2.9 % parts and service 11.9 % 12.8 % finance and insurance 4.1 % 4.4 % total revenue 100.0 % 100.0 % gross profit mix new vehicle 23.9 % 15.9 % used vehicle retail 14.0 % 12.5 % used vehicle wholesale 1.6 % 1.3 % parts and service 38.8 % 44.7 % finance and insurance 21.7 % 25.6 % total gross profit 100.0 % 100.0 % (1) front end yield is calculated as gross profit from new vehicles, used retail vehicles and finance and insurance (net), divided by combined new and used retail unit sales. asbury automotive group, inc. same store operating highlights (in millions) (unaudited) for the nine months ended september 30, increase (decrease) % change 2021 2020 revenue new vehicle: luxury $ 1,064.8 $ 829.8 $ 235.0 28 % import 1,443.6 1,098.3 345.3 31 % domestic 556.0 532.7 23.3 4 % total new vehicle 3,064.4 2,460.8 603.6 25 % used vehicle: retail 1,837.1 1,311.7 525.4 40 % wholesale 127.9 140.4 (12.5) (9) % total used vehicle 1,965.0 1,452.1 512.9 35 % parts and service 700.0 607.9 92.1 15 % finance and insurance, net 271.6 212.2 59.4 28 % total revenue $ 6,001.0 $ 4,733.0 $ 1,268.0 27 % gross profit new vehicle: luxury $ 103.2 $ 59.3 $ 43.9 74 % import 111.4 42.3 69.1 163 % domestic 46.3 29.3 17.0 58 % total new vehicle 260.9 130.9 130.0 99 % used vehicle: retail 162.1 102.7 59.4 58 % wholesale 15.3 11.0 4.3 39 % total used vehicle 177.4 113.7 63.7 56 % parts and service: customer pay 252.5 209.4 43.1 21 % warranty 57.9 63.3 (5.4) (9) % wholesale parts 20.1 15.1 5.0 33 % parts and service, excluding reconditioning and preparation 330.5 287.8 42.7 15 % reconditioning and preparation 100.8 80.5 20.3 25 % total parts and service 431.3 368.3 63.0 17 % finance and insurance 271.6 212.2 59.4 28 % total gross profit $ 1,141.2 $ 825.1 $ 316.1 38 % sg&a expense $ 664.7 $ 535.9 $ 128.8 24 % sg&a expense as a percentage of gross profit 58.2 % 64.9 % (670) bps 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. asbury automotive group, inc. same store operating highlights (continued) (unaudited) for the nine months ended september 30, increase (decrease) % change 2021 2020 unit sales new vehicle: luxury 17,795 14,851 2,944 20 % import 44,885 37,383 7,502 20 % domestic 11,953 12,558 (605) (5) % total new vehicle 74,633 64,792 9,841 15 % used vehicle retail 69,250 56,884 12,366 22 % used to new ratio 92.8 % 87.8 % 500 bps average selling price new vehicle $ 41,060 $ 37,980 $ 3,080 8 % used vehicle retail 26,529 23,059 3,470 15 % average gross profit per unit new vehicle: luxury $ 5,799 $ 3,993 $ 1,806 45 % import 2,482 1,132 1,350 119 % domestic 3,874 2,333 1,541 66 % total new vehicle 3,496 2,020 1,476 73 % used vehicle retail 2,341 1,805 536 30 % finance and insurance, net 1,888 1,744 144 8 % front end yield (1) 4,828 3,664 1,164 32 % gross margin new vehicle: luxury 9.7 % 7.1 % 260 bps import 7.7 % 3.9 % 380 bps domestic 8.3 % 5.5 % 280 bps total new vehicle 8.5 % 5.3 % 320 bps used vehicle retail 8.8 % 7.8 % 100 bps parts and service: parts and service, excluding reconditioning and preparation 47.2 % 47.3 % (10) bps parts and service, including reconditioning and preparation 61.6 % 60.6 % 100 bps total gross profit margin 19.0 % 17.4 % 160 bps 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. (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. additional disclosures (in millions) (unaudited) september 30, 2021 december 31, 2020 increase (decrease) % change selected balance sheet data cash and cash equivalents $ 330.6 $ 1.4 $ 329.2 nm new vehicle inventory 121.9 640.0 (518.1) (81) % used vehicle inventory 236.4 188.5 47.9 25 % parts inventory 55.5 46.7 8.8 19 % total current assets 1,150.5 1,405.7 (255.2) (18) % floor plan notes payable (a) 138.2 702.2 (564.0) (80) % total current liabilities 659.2 1,223.4 (564.2) (46) % capitalization: long-term debt (including current portion) (b) $ 1,371.0 $ 1,201.8 $ 169.2 14 % shareholders' equity 1,301.3 905.5 395.8 44 % total $ 2,672.3 $ 2,107.3 $ 565.0 27 % nm—not meaningful (a) net of $46.8 million and $85.4 million in our floor plan offset account as of september 30, 2021 and december 31, 2020, respectively. (b) excluding $8.9 million of long-term debt classified as liabilities associated with assets held for sale as of december 31, 2020. september 30, 2021 december 31, 2020 september 30, 2020 days supply new vehicle inventory 12 40 47 used vehicle inventory 28 31 35 days supply of inventory is calculated based on new and used inventory levels at the end of each reporting period and a 30-day historical cost of sales. brand mix - new vehicle revenue by brand- for the nine months ended september 30, 2021 2020 luxury: mercedes-benz 11 % 8 % lexus 12 % 8 % bmw 5 % 6 % acura 4 % 4 % range rover 2 % 2 % audi 2 % 2 % porsche 2 % 1 % other luxury 7 % 3 % total luxury 45 % 34 % imports: honda 16 % 18 % toyota 12 % 13 % nissan 5 % 6 % other imports 7 % 7 % total imports 40 % 44 % domestic: ford 5 % 9 % chevrolet 4 % 6 % dodge 3 % 4 % other domestics 3 % 3 % total domestic 15 % 22 % total new vehicle revenue 100 % 100 % asbury automotive group inc. supplemental disclosures (unaudited) non-gaap financial disclosure and reconciliation in addition to evaluating the financial condition and results of our operations in accordance with gaap, from time to time management evaluates and analyzes results and any impact on the company of strategic decisions and actions relating to, among other things, cost reduction, growth, and profitability improvement initiatives, and other events outside of normal, or "core," business and operations, by considering certain alternative financial measures not prepared in accordance with gaap. these measures include "pro forma adjusted leverage ratio," "adjusted income from operations," "adjusted net income," " adjusted operating margins," 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 twelve months ended september 30, 2021 june 30, 2021 (dollars in millions) adjusted leverage ratio: long-term debt (including current portion) $ 1,371.0 $ 1,378.2 debt included in liabilities held for sale — 2.3 cash and floor plan offset (377.4) (177.3) availability under our used vehicle revolving floor plan facility (160.0) (160.0) adjusted long-term net debt $ 833.6 $ 1,043.2 calculation of earnings before interest, taxes, depreciation and amortization ("ebitda"): net income $ 481.0 $ 430.1 depreciation and amortization 40.1 39.2 income tax expense 153.0 138.9 swap and other interest expense 58.4 56.4 earnings before interest, taxes, depreciation and amortization ("ebitda") $ 732.5 $ 664.6 non-core items - expense (income): gain on dealership divestitures $ (36.6) $ (28.6) legal settlements (3.5) (3.5) gain on sale of real estate (1.9) (1.9) professional fees associated with acquisitions 4.8 1.3 real estate-related charges 2.8 2.8 total non-core items (34.4) (29.9) adjusted ebitda $ 698.1 $ 634.7 adjusted net leverage ratio 1.2 1.6 for the three months ended september 30, 2021 2020 (in millions, except per share data) adjusted income from operations: income from operations $ 201.0 $ 119.1 professional fees associated with acquisitions 3.5 1.3 real estate-related charges — 0.7 adjusted income from operations $ 204.5 $ 121.1 adjusted operating margin: adjusted income from operations $ 204.5 $ 121.1 total revenue 2,406.0 1,845.4 adjusted operating margin 8.5% 6.6% adjusted net income: net income $ 147.0 $ 96.2 non-core items - (income) expense: gain on dealership divestiture (8.0) (24.7) real estate-related charges — 0.7 professional fees associated with acquisitions 3.5 1.3 income tax effect on non-core items above 1.1 5.7 total non-core items (3.4) (17.0) adjusted net income $ 143.6 $ 79.2 adjusted diluted earnings per share (eps): diluted eps $ 7.54 $ 4.96 total non-core items (0.18) (0.88) adjusted diluted eps $ 7.36 $ 4.08 weighted average common shares outstanding - diluted 19.5 19.4 adjusted selling, general, and administrative expense: selling, general, and administrative expense $ 268.7 $ 206.5 professional fees associated with acquisitions (3.5) (1.3) adjusted selling, general, and administrative expense: $ 265.2 $ 205.2 for the nine months ended september 30, 2021 2020 (in millions, except per share data) adjusted income from operations: income from operations $ 555.7 $ 236.3 legal settlements (3.5) (2.1) gain on sale of real estate (1.9) (0.3) real estate related charges 2.1 0.7 park place related costs — 11.6 professional fees associated with acquisitions 3.5 1.3 franchise rights impairment — 23.0 adjusted income from operations $ 555.9 $ 270.5 adjusted net income: net income $ 391.9 $ 165.3 non-core items - (income) expense: legal settlements (3.5) (2.1) gain on sale of real estate (1.9) (0.3) real estate related charges 2.1 0.7 gain on dealership divestitures (8.0) (58.4) park place related costs — 11.6 professional fees associated with acquisitions 3.5 1.3 loss on extinguishment of debt — 20.7 franchise rights impairment — 23.0 income tax effect on non-core items above 1.9 0.9 total non-core items (5.9) (2.6) adjusted net income $ 386.0 $ 162.7 adjusted diluted earnings per share (eps): diluted eps $ 20.10 $ 8.56 total non-core items (0.31) (0.13) adjusted diluted eps $ 19.79 $ 8.43 weighted average common shares outstanding - diluted 19.5 19.3 adjusted selling, general, and administrative expense: selling, general, and administrative expense $ 778.2 $ 553.4 professional fees associated with acquisitions (3.5) (1.3) adjusted selling, general, and administrative expense: $ 774.7 $ 552.1
