DULUTH, Ga., Dec. 4, 2012 /PRNewswire/ -- Asbury
Automotive Group, Inc. (NYSE: ABG), one of the largest automotive
retail and services companies in the U.S., today announced that its
board of directors has authorized the repurchase of up to
$50 million of the Company's common
stock. The repurchases may be made in open market
transactions. The Company's new stock repurchase program replaces,
effective January 1, 2013, its
expiring $47.4 million program
authorized in December 2011, under
which the Company has repurchased $21
million of shares since January
2012.
Asbury expects that any stock repurchases will be funded through
available cash. As of October 23, 2012, the Company had
approximately 31.5 million shares outstanding.
"This is consistent with our previously-announced plans to
repurchase $25 to $30 million shares or more on an opportunistic
basis per year," said Craig T.
Monaghan, Asbury's President and CEO.
The Company will base future repurchase decisions on such
factors as Asbury's stock price, general economic and market
conditions, the potential impact on its capital structure, and the
expected return on competing uses of capital such as strategic
dealership acquisitions and capital investments. Asbury gives no
assurance as to the amount of repurchases to be made or the actual
purchase prices.
About Asbury Automotive Group, Inc.
Asbury Automotive Group, Inc. ("Asbury"), headquartered in
Duluth, Georgia, a suburb of
Atlanta, is one of the largest
automobile retailers in the U.S. Built through a combination of
organic growth and a series of strategic acquisitions, Asbury
currently operates 77 retail auto stores, encompassing 98
franchises for the sale and servicing of 29 different brands of
American, European and Asian automobiles. Asbury offers customers
an extensive range of automotive products and services, including
new and used vehicle sales and related financing and insurance,
vehicle maintenance and repair services, replacement parts and
service contracts.
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 and projections regarding industry and general economic
trends, Asbury's expected financial position, results of operations
or market position and business strategy. 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,
Asbury's ability to execute its retailing and service business
strategy, initiatives and other strategies, changes in the
mix/number of vehicles Asbury is able to sell, changes in general
economic and business conditions, changes in laws and regulations
governing the operation of automobile franchises, changes in the
price of oil and gasoline, Asbury's ability to generate sufficient
cash flows, maintain its liquidity and obtain additional funds for
working capital, capital expenditures, acquisitions, debt
maturities and other corporate purposes, Asbury's continued ability
to comply with applicable covenants in its financing and lease
agreements, Asbury's relationships with, and the reputation and
financial health and viability of, the vehicle manufacturers whose
brands Asbury sells, and their ability to design, manufacture,
deliver and market their vehicles successfully, significant
disruptions in the production and delivery of vehicles and parts
for any reason, including natural disasters, product recalls, work
stoppages or other occurrences that are outside of Asbury's
control, adverse results from litigation or other similar
proceedings involving Asbury, Asbury's relationship with, and the
financial stability of, its lenders and lessors, high levels of
competition in Asbury's industry, Asbury's ability to renew, and
enter into new, framework and dealer agreements with vehicle
manufacturers on acceptable terms, Asbury's ability to attract and
to retain key personnel, Asbury's ability to leverage gains from
its dealership portfolio, and Asbury's ability to access
capital. 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.
Many of these factors are beyond Asbury's ability to control or
predict. 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 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.
Forward-looking statements speak only as of the date they are made,
and we assume no obligation to update any forward-looking
statements.
SOURCE Asbury Automotive Group, Inc.