DULUTH, Ga. -

Fueled by both new- and used-vehicle same-store unit sales jumping more than 20 percent, Asbury Automotive Group revealed the specifics of its fourth-quarter rise in adjusted income from continuing operations.

Executives stated that enhanced sales performance pushed Asbury to a fourth-quarter adjusted income total of $12.4 million or 37 cents per diluted share. In the same quarter a year earlier, the company’s adjusted income level was at $6.9 million or 21 cents per diluted share.

Asbury determined the 76-percent year-over-year spike came not only as the result of growth in vehicle sales but also from benefits achieved because of the company’s continued expense discipline.

Looking strictly at net income for the fourth quarter of 2010, Asbury calculated that it generated $5.4 million or 16 cents per diluted share, compared with $0.2 million or 1 cent per diluted share in the prior-year period. 

Moving along, Asbury also shared its fourth-quarter revenue total was $1 billion, compared with the prior-period revenue figure of $0.8 billion. The company noted growth came across all its business lines.

Furthermore, Asbury indicated that it saw $2.1 million of luxury new-vehicle gross profit from a multi-year performance-based manufacturer incentive program that was earned the fourth quarter. As a result, executives computed that same-store gross profit per new vehicle sold of $2,183 included $118 per new unit sold from this incentive program.

“Asbury is pleased to announce strong results for the fourth quarter primarily as a result of growth in new and used light-vehicle revenues combined with achieving benefits from our continued focus on cost structure,” explained Craig Monaghan, Asbury’s president and chief executive officer.

“Our ability to generate 76-percent growth in adjusted EPS demonstrates the continuing benefits of our cost-savings initiatives as well as the quality of our brands and our geographies,” Monaghan continued. “These results also reflect Asbury’s management philosophy that empowers the entrepreneurial teams operating our stores.”

Michael Kearney, Asbury’s executive vice president and chief operating officer, elaborated further about the company’s sales performance, especially in connection with used vehicles.

“It is exciting to see the top-line results from our various operational initiatives,” Kearney began.

“The 22-percent increase in used unit sales balanced with delivering gross margins of 10 percent speaks volumes for the impact of Asbury’s 1:2:1 program,” he continued. “The 34-percent growth in same store F&I revenues, compared to our 23-percent same-store unit volume growth in new- and used-vehicle sales, provides evidence that the execution of our F&I processes are producing incremental sales penetration in excess of the recovery in vehicle sales.”

Full-Year Financial Performance and Other Company Activities

Along with detailing the fourth quarter, Asbury also shared how the company fared for all of 2010.

Executives noted full-year revenue came in at $3.9 billion, compared with $3.4 billion in the prior year. That amount sparked Asbury to post an adjusted income from continuing operations level of $46.8 million or $1.41 per diluted share. In 2009, the company said this income total was $28.1 million or 86 cents per diluted share.

Also unfolding in the past year, Asbury recapped that it acquired nine franchises in the fourth quarter with total estimated annual revenues of $160 million. The company also sold one franchise last year, a facility that posted $9 million in revenue.

Finally this past December, Asbury announced that it had entered into an agreement to sell its heavy truck business, Nalley Motor Trucks to Rush Enterprises. Executives mentioned Nalley generated $233 million in revenue last year.

“Asbury anticipates the sale closing during the first quarter of 2011 and now reports NMT’s operating results as discontinued operations within the company’s financial statements,” executives concluded.