Monday, Asbury Automotive Group, Inc. (ABG) reported a fourth-quarter net loss compared to a profit in the year-ago period, primarily due to impairment charges. The company also appointed Michael Kearney as the Senior Vice President and Chief Operating Officer.
The New York-based company reported a fourth-quarter net loss of $365.4 million or $11.53 per share compared to a profit of $11.0 million or $0.34 per share in the corresponding quarter last year.
Loss from continuing operations for the fourth-quarter was $353.5 million or $11.15 per share compared to a profit from continuing operations of $11.0 million or $0.34 per share in the prior-year. On average, six analysts polled by Thomson Reuters estimated a net loss of $0.04 per share for the quarter. Analysts' estimates typically exclude special items.
The fourth-quarter loss from continuing operations includes $351.0 million or $11.07 per share in after-tax non-core items. Significant non-core items consists of an after-tax charge of $373.1 million primarily associated with the impairment of the company's goodwill and manufacturer franchise rights.
The company reported a loss from discontinued operations, net of tax of $11.9 million or $0.38 per share compared to none in the comparable period last year. Total revenues for the quarter declined to $918.4 million from $1.29 billion in the last year similar period. Analysts estimated revenue of $1.0 billion for the quarter.
Commenting on the fourth quarter, Asbury's president and CEO Charles Oglesby said, "The fourth quarter presented Asbury with the most challenging retail environment in our history, as U.S. vehicle sales declined 35% nationwide. We faced this challenge head on, moving quickly to maintain our liquidity and enhance productivity."
The automotive retailer reported an impairment charge of $535.9 million for the fourth-quarter of fiscal 2008 compared to none in the fourth-quarter last year.
Other significant corporate developments include repurchase of $60 million debt there by reducing outstanding balances by10% while maintaining consistent cash balances. The company also relocated its headquarters from New York to Duluth, Georgia, and reduced corporate staffing levels by 25%.
The company stated that it reduced national workforce by 10% in the fourth quarter and by 14% since June. In total, Asbury reduced same store operating expenses by $27 million or 17%, during the quarter.
In its ongoing restructuring efforts, the company eliminated its regional management structure. In this regard, Asbury stated that Michael Kearney, former President and CEO of East Region is appointed as the Senior Vice President and Chief Operating Officer with responsibility for the oversight of dealership operations.
For fiscal 2008, the company reported a net loss of $338.0 million or $10.66 per share compared to a profit of $51 million or $1.53 per share in the corresponding period last year.
Loss from continuing operations for the fiscal 2008 was $323.1 million or $10.19 per share compared to a profit of $51.7 million or $1.55 per share in the full year 2007.
Loss from discontinued operations for the full year 2008 widened to $14.9 million or $0.47 per share from $0.7 million or $0.02 per share in the fiscal 2007. Total revenues for the fiscal 2008 declined to $4.62 billion from $5.47 billion in the full year 2007.
Craig Monaghan, Asbury's senior vice president and chief financial officer said that there is considerable equity with $116 million in borrowing capacity under credit facilities and $92 million in cash on hand at year-end. With no major debt maturities until 2012 the company believes that it has the financial flexibility to weather the current challenging environment.
Asbury is currently trading at $2.99 on a volume of 1.15 million shares on the NYSE.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.