Asbury Automotive Group, Inc., one of the largest automotive retail and service companies in the U.S., reported net income for the first quarter 2017 of $34.0 million, or $1.61 per diluted share, compared to $31.0 million, or $1.27 per diluted share in the prior year quarter. It also reported adjusted income from continuing operations (a non-GAAP measure) for the first quarter 2017 of $33.4 million, or $1.58 per diluted share, compared to $33.2 million, or $1.36 per diluted share, in the prior year quarter, a 16% increase in adjusted earnings per share.

Income from continuing operations for the first quarter 2017 was adjusted for $0.9 million of pre-tax legal settlement benefits, or $0.03 per diluted share.  Income from continuing operations for the first quarter 2016 was adjusted for $3.4 million of pre-tax real estate related charges, or $0.09 per diluted share. See attached reconciliation for reported adjustments related to both of these periods.

Total revenue for the first quarter remained flat at $1.6 billion compared to the prior year period; total revenue on a same-store basis (a non-GAAP measure) was up 3% from the prior year period.

First Quarter 2017 Operational Summary

Same store:

• Total revenues increased 3%; gross profit increased 3%

• New vehicle revenue increased 1%; gross profit decreased 9%

• Used vehicle retail revenue increased 4%; gross profit decreased 2%

• Finance and insurance gross profit increased 9%

• Parts and service revenue increased 5%; gross profit increased 5%

All store:

• SG&A as a percentage of gross profit increased 10 basis points to 69.6%

• Total company adjusted income from operations (a non-GAAP measure) as a percentage of revenue was 4.6% down 10 basis points from the prior year

• Adjusted EPS from continuing operations increased 16%

First Quarter Strategic Highlights:

• Acquired a Chevrolet franchise and an Isuzu truck franchise in Indianapolis, Indiana

• Opened a Nissan add point in Cumming, Georgia

• Repurchased $15 million of common stock

"Despite flat new vehicle industry sales and continued margin pressure, we are pleased to announce our 31^st consecutive quarter of adjusted EPS growth," said Craig Monaghan, Asbury's President and Chief Executive Officer.

"Our ability to drive incremental used sales, enhance F&I PVR, and grow parts and service enabled us to deliver same-store gross profit growth of 3% and industry leading operating margins of 4.6%," said Asbury's Executive Vice President and Chief Operating Officer, David Hult.