Asbury Automotive bolsters its finances with convertible buyback in Q3

By Susanna Moon

Chicago, Oct. 26 - Asbury Automotive Group, Inc. said it repurchased $25 million of its convertible notes in the third quarter in an effort to improve its balance sheet.

"We continually evaluate opportunities in the capital markets to further improve our financial position," Craig T. Monaghan, senior vice president and chief financial officer for Asbury, noted in a company press release.

Reported income from continuing operations for the third quarter rose to $12 million, or $0.36 per diluted share, compared with $10 million, or $0.30 per diluted share, in the third quarter of 2009.

Revenue was up 9% at $1.1 billion.

"The increased third quarter profitability was notable for the strong performance of our used vehicle, parts and service, and F&I businesses in spite of a relatively flat, quarter over quarter, new vehicle industry sales market," Charles R. Oglesby, president and chief executive officer, said in the release.

"The continued leveraging of Asbury's cost structure is further evidence of the benefits from our focus on expense management."

Asbury is an automobile retailer based in Duluth, Ga.

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