Asbury Automotive Group Reports Record First-Quarter Financial Results.

Business Editors

STAMFORD, Conn.--(BUSINESS WIRE)--April 25, 2002

Asbury Automotive Group, Inc. (NYSE: ABG), a specialty retailer and one of the largest automotive retailers in the U.S., today reported record financial results for the first quarter ended March 31, 2002.

In Asbury's first reporting period since its initial public offering in mid-March, the company announced net income for the quarter of $11.3 million, or $0.33 per share. The results include a pro forma tax provision as if the company were a public "C" corporation for the full quarter. The results also exclude a non-recurring deferred income tax provision required by FASB 109 related to Asbury's change in tax status from a limited liability company to a "C" corporation. On a GAAP basis, including the non-recurring deferred income tax provision, the company had net income of $5.2 million and earnings per share of $0.17.

"We are pleased to announce results above analysts' original expectations in our first quarterly report as a public company," said Kenneth B. Gilman, President and CEO. "Asbury's operating results were strong, reflecting an overall increase in gross profit to 16.1% of revenues in the first quarter this year from 15.6% last year. The strength and consistency of our business model, as we described during our road show, continues to be reflected in our financial results. Our luxury and mid-line import brand mix, customer focus and strong platform performance all contributed to an excellent quarter."

Financial highlights for the quarter included:

- In connection with its initial public offering (IPO) on March 14, 2002, the
Company paid down debt of approximately $50 million.

- In connection with the Company's conversion from a limited liability company
to a corporation, and in accordance with Statement of Financial Accounting
Standards (SFAS) No. 109, the Company recorded a one-time, non-recurring charge
of $11.6 million related to the establishment of a net deferred tax liability
associated with the difference between the financial statement and tax basis of
the assets and liabilities of the Company at the conversion date. In addition,
the Company has presented a pro forma tax provision for the quarter ended March
31, 2002 as if it was a corporation for the entire quarter and assumes that all
shares were outstanding for the full quarter.

- During the first quarter of 2002, the Company divested of two dealerships
(one in Oregon and the other in North Carolina). In accordance with Statement
of Financial Accounting Standards (SFAS) No. 144, these dealerships are treated
as discontinued operations for each of the periods presented. Included in the
discontinued operations line are the results of operations of these dealerships
for both periods as well as the net gain on the sales in the current period.

- The provisions of SFAS No. 142 eliminated the amortization of the goodwill
component of an acquisition price over the estimated useful life of the
acquisition. SFAS No. 142 applied immediately to all acquisitions completed
after June 30, 2001 and all remaining goodwill would be amortized until
December 31, 2001. The Company's statement of income for the quarter ended
March 31, 2001 included approximately $2.5 million of pre-tax goodwill
amortization.

- Included in our selling, general and administrative (SG&A) expenses for the
quarter ended March 31, 2002 are one-time IPO related compensation expenses of
$0.5 million as well as $1.1 million of expenses associated with the start-up
of our Price 1 used car pilot program.

- Pro forma earnings per share (EPS) amounts for the quarter ended March 31,
2002 reflect the 4.5 million incremental shares issued in connection with the
IPO as if the IPO was consummated on January 1, 2002 as well as the 29.5
million shares issued upon the conversion from a limited liability company to a
corporation. Pro forma EPS figures have not been presented for the prior
quarter (and are not required) as the Company believes changes in the Company's
tax status cause an inequitable comparison.

Mr. Gilman also noted that the company is comfortable with the current analysts' consensus estimate range for 2002 net earnings per share of $1.54 - $1.56, as well as the second-quarter consensus estimate of $0.38 per share.

Asbury will host a conference call to discuss the quarterly results later this morning, at 10:00 a.m. Eastern Daylight Time. The conference will be webcast live on the Internet and can be accessed by logging onto www.asburyauto.com. In addition, a live audio of the call will be accessible to the public by calling [phone]. International callers, please dial [phone]. Callers should dial in approximately 10 minutes before the call begins. A conference call replay will be available from 1:00 p.m. (EDT), April 25 through midnight, Thursday, May 2 and can be accessed by dialing [phone] (domestic) or [phone] (international); confirmation code - 547185.

About Asbury Automotive Group

Asbury Automotive Group, Inc. (www.asburyauto.com), headquartered in Stamford, Connecticut, is one of the largest automobile retailers in the U.S., with 2001 revenues of $4.3 billion. Built through a combination of organic growth and a series of strategic acquisitions over the past six years, Asbury now operates through nine geographically concentrated, individually branded "platforms". These platforms operate 91 retail auto stores, encompassing 127 franchises for the sale and servicing of 36 different brands of American, European and Asian automobiles. Asbury believes that its product mix includes one of the highest proportions of luxury and mid-line import brands among leading U.S. public automotive retailers. The company 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" as that term is defined in the Private Securities Litigation Reform Act of 1995. The forward-looking statements include statements relating to goals, plans and projections regarding the company's financial position, results of operations, market position, product development and business strategy. These statements are based on management's current expectations 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, market factors, the company's relationships with vehicle manufacturers and other suppliers, risks associated with the company's substantial indebtedness, risks related to pending and potential future acquisitions, general economic conditions both nationally and locally and governmental regulations and legislation. There can be no guarantees the company's plans for future operations will be successfully implemented or that they will prove to be commercially successful. These and other risk factors are discussed in the company's registration statement on Form S-1. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

ASBURY AUTOMOTIVE GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
(dollars in thousands except per share data)
(unaudited)

                                     2002 Pro     2002         2001
                                     Forma (a)  Actual (b)    Actual
                                   ----------- ----------- -----------

REVENUES:
  New vehicle                       $ 631,105   $ 631,105   $ 570,270
  Used vehicle                        285,849     285,849     282,145
  Parts, service and
   collision repair                   125,068     125,068     116,054
  Finance and insurance, net           26,563      26,563      23,258
                                   ----------- ----------- -----------
    Total revenues                  1,068,585   1,068,585     991,727

COST OF SALES
  New vehicle                         578,770     578,770     524,126
  Used vehicle                        258,388     258,388     257,027
  Parts, service and
   collision repair                    59,452      59,452      55,910
                                   ----------- ----------- -----------
    Total cost of sales               896,610     896,610     837,063
                                   ----------- ----------- -----------
GROSS PROFIT                          171,975     171,975     154,664

OPERATING EXPENSES:
   Selling, general and
    administrative                    133,015     133,015     117,221
   Depreciation and amortization        5,833       5,833       7,041
                                   ----------- ----------- -----------
     Income from operations            33,127      33,127      30,402

OTHER INCOME (EXPENSE):
  Floor plan interest expense          (4,350)     (4,350)     (8,934)
  Other interest expense               (9,778)     (9,778)    (12,441)
  Interest income                         315         315       1,185
  Net losses from
   unconsolidated entities               (100)       (100)     (1,000)
  Other income                           (392)       (392)        438
                                   ----------- ----------- -----------
    Total other expense, net          (14,305)    (14,305)    (20,752)
                                   ----------- ----------- -----------
    Income before income taxes,
     minority interest,
     extraordinary loss and
     discontinued operations           18,822      18,822       9,650

INCOME TAX PROVISION:
  Income tax expense                    7,493       2,194       1,168
  Tax adjustment upon conversion
   from an L.L.C. to a corporation          -      11,553

MINORITY INTEREST                           -           -         144
                                   ----------- ----------- -----------
    Income before extraordinary
     loss and discontinued
     operations                        11,329       5,075       8,338

EXTRAORDINARY LOSS ON  EARLY
 EXTINGUISHMENT OF DEBT                     -           -      (1,433)

DISCONTINUED OPERATIONS                     -          87        (229)
                                   ----------- ----------- -----------
    Net income                       $ 11,329     $ 5,162     $ 6,676
                                   =========== =========== ===========

EARNINGS PER COMMON SHARE:
  Basic and Diluted
    Income before and after
     discontinued operations           $ 0.33      $ 0.17
                                   =========== ===========

WEIGHTED AVERAGE NUMBER OF
 SHARES OUTSTANDING
  Basic                                34,000      30,400
                                   =========== ===========
  Diluted                              34,034      30,434
                                   =========== ===========


(a) Pro forma column includes a tax provision as if the Company were a
    "C" corporation for the entire quarter as well as assumes that all
    shares were outstanding for the full quarter. This column excludes
    a one-time charge to establish a net deferred tax liability upon
    the Company's conversion to a "C" corporation as required by SFAS
    109.

(b) Reconciliation of GAAP net income to pro forma net income:

    GAAP net income                   $ 5,162
    Tax adjustment upon
     conversion from an L.L.C.
     to a corporation                  11,553
    Pro forma income tax charge        (5,299)(c)
    Discontinued operations               (87)
                                      -----------
    Pro forma net income               11,329
                                      ===========

(c) Represents the pro forma tax charge for the time period during the
    quarter that the company was an L.L.C.



ASBURY AUTOMOTIVE GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands except per share data)

                        ASSETS                  March 31, December 31,
                                                   2002        2001
                                              ----------- -----------
                                              (unaudited)
CURRENT ASSETS:
  Cash and cash equivalents                      $ 78,112    $ 60,506
  Contracts-in-transit                             86,217      93,044
  Accounts receivable, net                         84,592      81,347
  Inventories                                     510,799     496,054
  Prepaid and other current assets                 40,135      26,663
                                              ----------- -----------
        Total current assets                      799,855     757,614

PROPERTY AND EQUIPMENT, net                       258,379     256,402
GOODWILL, net                                     392,287     392,856
OTHER ASSETS                                       53,851      58,141
                                              ----------- -----------
         Total assets                         $ 1,504,372 $ 1,465,013
                                              =========== ===========

 LIABILITIES AND STOCKHOLDERS'/MEMBERS' EQUITY

CURRENT LIABILITIES:
  Floor plan notes payable                      $ 451,003   $ 451,375
  Short-term debt                                  10,194      10,000
  Current maturities of long-term debt             46,338      35,789
  Accounts payable and accrued liabilities        123,892     112,833
                                              ----------- -----------
       Total current liabilities                  631,427     609,997

LONG-TERM DEBT                                    429,689     492,548
OTHER LIABILITIES                                  37,443      14,561

STOCKHOLDERS'/MEMBERS' EQUITY                     405,813     347,907
                                              ----------- -----------

       Total liabilities and
        stockholders'/members' equity         $ 1,504,372 $ 1,465,013
                                              =========== ===========

                                                        -           -
ASBURY AUTOMOTIVE GROUP, INC.
SELECTED DATA
FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
(dollars in thousands except per unit data)
(unaudited)

                                 Actual                Same Store
                      ----------------------- -----------------------
                            2002        2001        2002        2001
                            ----        ----        ----        ----
RETAIL UNITS:
  New                      22,529      21,518      21,103      21,328
  Used                     14,933      14,773      13,614      14,510
                      ----------- ------------ ---------- -----------
    Total                  37,462      36,291      34,717      35,838

REVENUE:
  New retail             $619,929    $560,978    $578,220    $556,898
  Used retail             222,229     214,703     201,700     211,314
  Parts, service and
   collision repair       125,068     116,054     117,082     115,798
  Finance and
   insurance, net          26,563      23,258      25,316      22,950
  Fleet                    11,176       9,292       6,909       9,292
  Wholesale                63,620      67,442      57,588      66,972
                      ----------- ------------ ---------- -----------
    Total               1,068,585     991,727     986,815     983,224

GROSS MARGIN %:
  New retail                  8.4         8.1
  Used retail                12.2        11.8
  Parts, service and
   collision repair          52.5        51.8

  Finance and
   insurance, net           100.0       100.0
    Total                    16.1        15.6

GROSS PROFIT PER UNIT:
  New retail               $2,311      $2,125
  Used retail               1,810       1,709
    Weighted average        2,112       1,955

F&I PVR                      $709        $641

EBITDA (a)                $34,533     $30,132
EBITDA %                      3.2         3.0

OPERATING INCOME %            3.1         3.1

CAPITAL EXPENDITURES       $8,593     $10,326
FREE CASH FLOW (b)          7,807      10,369


                        March 31,  December 31,
                           2002        2001
                       ----------  ----------
CAPITALIZATION:
  Long-term debt         $476,027    $528,337
  Stockholders'/members'
   equity                 405,813     347,907
                       ----------  ----------
    Total                 881,840     876,244


(a) EBITDA is defined as earnings before income taxes, minority
    interest, extraordinary loss, discontinued operations, other
    interest expense, depreciation and amortization and net losses
    from unconsolidated affiliates.

(b) Free cash flow is defined as net cash provided by operating
    activities less capital expenditures.

ITEMS TO CONSIDER WHEN READING OUR FINANCIAL INFORMATION

- In connection with its initial public offering (IPO) on March 14, 2002, the
Company paid down debt of approximately $50 million.

- In connection with the Company's conversion from a limited liability company
to a corporation, and in accordance with Statement of Financial Accounting
Standards (SFAS) No. 109, the Company recorded a one-time, non-recurring charge
of $11.6 million related to the establishment of a net deferred tax liability
associated with the difference between the financial statement and tax basis of
the assets and liabilities of the Company at the conversion date. In addition,
the Company has presented a pro forma tax provision for the quarter ended March
31, 2002 as if it was a corporation for the entire quarter and assumes that all
shares were outstanding for the full quarter.

- During the first quarter of 2002, the Company divested of two dealerships
(one in Oregon and the other in North Carolina). In accordance with Statement
of Financial Accounting Standards (SFAS) No. 144, these dealerships are treated
as discontinued operations for each of the periods presented. Included in the
discontinued operations line are the results of operations of these dealerships
for both periods as well as the net gain on the sales in the current period.

- The provisions of SFAS No. 142 eliminated the amortization of the goodwill
component of an acquisition price over the estimated useful life of the
acquisition. SFAS No. 142 applied immediately to all acquisitions completed
after June 30, 2001 and all remaining goodwill would be amortized until
December 31, 2001. The Company's statement of income for the quarter ended
March 31, 2001 included approximately $2.5 million of pre-tax goodwill
amortization.

- Included in our selling, general and administrative (SG&A) expenses for the
quarter ended March 31, 2002 are one-time IPO related compensation expenses of
$0.5 million as well as $1.1 million of expenses associated with the start-up
of our Price 1 used car pilot program.

- Pro forma earnings per share (EPS) amounts for the quarter ended March 31,
2002 reflect the 4.5 million incremental shares issued in connection with the
IPO as if the IPO was consummated on January 1, 2002 as well as the 29.5
million shares issued upon the conversion from a limited liability company to a
corporation. Pro forma EPS figures have not been presented for the prior
quarter (and are not required) as the Company believes changes in the Company's
tax status cause an inequitable comparison.